Negros Transportation Co., Demandante-Apelada, Contra Carlos Jayme Y Alberto Mansulet, Demandados, Carlos Jayme, Apelante

Summary

This case involves the subsidiary civil liability of a hacienda owner for damages caused by his employee driver's negligence. Negros Transportation Co. sued Carlos Jayme and Alberto Mansulet for damages from a vehicular collision. The Supreme Court affirmed that Jayme, as owner of a sugar hacienda, constitutes an owner/director of an enterprise under Article 1903 of the Civil Code. The Court found Jayme liable because he failed to exercise due diligence - his driver lacked a license and Jayme failed to verify the driver's qualifications. The decision establishes that agricultural enterprises fall under Articles 1902-1903 of the Civil Code regarding employer liability for employee negligence, and emphasizes the importance of employers exercising diligence in hiring and supervising employees handling dangerous instrumentalities.