Pangasinan Five Star Bus Company v. Commonwealth Insurance Company

Summary

This case involves an insurance subrogation claim arising from a vehicular accident between a bus and a car. Commonwealth Insurance Company paid P400,000 for damages to the insured vehicle and sought reimbursement from the bus company and driver. The RTC initially dismissed the case for insufficient evidence despite admitting a questionable traffic report. The Court of Appeals reversed, applying res ipsa loquitur doctrine based on petitioners' general denial which constituted admission of negligence allegations. The Supreme Court affirmed, upholding the application of res ipsa loquitur and employer vicarious liability under Civil Code Articles 2176 and 2180. The case demonstrates the importance of specific denials in pleadings and the continuing viability of res ipsa loquitur in vehicular accident cases involving apparent negligence.