Spouses Jose Fontanilla v. Honorable Inocencio D. Maliaman

Summary

Parents of Francisco Fontanilla sued the National Irrigation Administration for damages after their son died in a vehicular accident involving an NIA pick-up truck. The trial court awarded death benefits and actual expenses but denied moral damages, exemplary damages, and attorney's fees. On review, the Supreme Court held that NIA, as a government corporation performing proprietary functions, assumes liability as an ordinary employer under the Civil Code. Finding negligence in supervision due to excessive speed within city limits and failure to stop after the accident, the Court awarded additional moral damages (P30,000), exemplary damages (P8,000), and attorney's fees (20% of total award). The decision established important precedent on government corporation liability when performing non-governmental functions.