Ba Finance Corporation v. Hon. Court of Appeals

Summary

BA Finance Corporation challenged its liability for damages arising from a March 6, 1983 vehicular accident involving its registered Isuzu truck. The vehicle was leased to Rock Component Philippines and driven by someone not employed by BA Finance when the accident occurred. The trial court, Court of Appeals, and Supreme Court all held BA Finance liable as the registered owner, ordering payment of P622,890.00 in damages to accident victims. The Supreme Court applied the established doctrine from Erezo vs. Jepte that registered owners remain primarily liable for third-party damages regardless of lease or transfer arrangements, as registration creates a presumption of ownership that protects the public's right to seek compensation. While BA Finance could seek reimbursement from its lessee under their contract, this did not absolve its primary liability to injured parties. The decision reinforces the policy that vehicle registration serves to ensure identifiable responsibility for highway accidents.