Monday, April 13, 2020

[CASE DIGEST] DURBAN APARTMENTS CORPORATION, doing business under the name and style of City Garden Hotel v. PIONEER INSURANCE AND SURETY CORPORATION (G.R. No. 179419)

January 12, 2011 

Ponente: Nachura, J.
 
FACTS:

·         On April 30, 2002, Jeffrey See arrived and checked in at the City Garden Hotel in Makati corner Kalayaan Avenues, Makati City before midnight. The hotel's parking attendant, Vicente Justimbaste, got the key to See's Suzuki Grand Vitara and parked the said vehicle at the parking area of Equitable PCI Bank along Makati Avenue, right across the hotel. 

·         At about 1 a.m. the next day, See was awakened in his room by a telephone call from the Hotel Chief Security Officer who informed him that his Vitara was carnapped while it was parked unattended. See went to see the Hotel Chief Security Officer and later reported the incident to the Operations Division of the Makati City Police Anti-Carnapping Unit. 

·         Subsequently, See filed a complaint with the PNP Traffic Management Group in Camp Crame, Quezon City. He alleged that: (a) no necessary precautions were taken to prevent the carnapping incident from happening; (b) that Durban Apartments was wanting in due diligence in the selection and supervision of its employees particularly Justimbaste; and (c) Justimbaste and Durban Apartments failed and refused to pay his valid, just, and lawful claim despite written demands. Durban Apartment and Justimbaste denied the allegations. 

·         In the meantime, Pioneer Insurance paid See the sum of P1,163,250.00 representing the cost of the stolen car. Theareafter, by right of subrogation, Pioneer Insurance filed a complaint for recovery of damages against Durban Apartments and Justimbaste before the Makati RTC. 

·         During the pre-trial conference on November 28, 2003, counsel for Pioneer Insurance was present. The counsel of Durban Apartments and Justimbaste was absent, instead, a certain Atty. Nestor Mejia appeared for Durban Apartments and Justimbaste, but did NOT file their pre-trial brief. As a result, the RTC allowed Pioneer Insurance to present its evidence ex parte before the Branch Clerk of Court.

·         RTC: Durban Apartments is ordered to pay the sum of P1,163,250.00 with legal interest thereon from July 22, 2003 until the obligation is fully paid and attorneys fees and litigation expenses amounting to P120,000.00.

·         CA: RTC affirmed in toto

·         Hence, the instant petition.

RULING:  

Petition denied. CA ruling affirmed.






Whether the RTC erred in allowing Pioneer Insurance to present evidence ex-parte on account of the failure of the counsel of Durban Apartments and Justimbaste to file a pre-trial brief. – NO.

·         Durban Apartments was in default for failure to appear at the pre-trial conference and to file a pre-trial brief. Therefore, the RTC correctly allowed Pioner Insurance to present evidence ex-parte.

·         Appearance of parties and their counsel at the pre-trial conference, along with the filing of a corresponding pre-trial brief, is mandatory, nay, their duty pursuant to Sections 4 and 6 of Rule 18 of the ROC. 

·         In the present case, the absence of the counsel of Durban Apartments is inexcusable because it does not fall within the two exceptions for a valid non-appearance; there was neither (a) a valid excuse nor (b) appearance of a representative on behalf of a party who is fully authorized in writing to enter into an amicable settlement, to submit to alternative modes of dispute resolution, and to enter into stipulations or admissions of facts and documents..

Whether the RTC and CA erred in holding Durban Apartments liable for the loss of See's vehicle. – NO.

·         Despite the fact that Durban Apartments was not able to present evidence during the trial, this did NOT automatically result in a judgment in favor of Pioneer Insurance. In fact, Pioneer was still obliged to substantiate the allegations in its complaint.

·         In this case, Pioneer Insurance substantiated the allegations in its complaint that a contract of necessary deposit existed between the insured See and Durban Apartments. 

·         From the facts found by the lower courts, the insured See deposited his vehicle for safekeeping with Durban Apartments, through the latter's employee, Justimbaste. In turn, Justimbaste issued a claim stub to See. Thus, the contract of deposit was perfected from See's delivery, when he handed over to Justimbaste the keys to his vehicle, which Justimbaste received with the obligation of safely keeping and returning it. 

·         Article 1962, in relation to Article 1998, of the Civil Code defines a contract of deposit and a necessary deposit made by persons in hotels or inns.

·         Art. 1962. A deposit is constituted from the moment a person receives a thing belonging to another, with the obligation of safely keeping it and returning the same. If the safekeeping of the thing delivered is not the principal purpose of the contract, there is no deposit but some other contract.

·          Art. 1998. The deposit of effects made by travelers in hotels or inns shall also be regarded as necessary. The keepers of hotels or inns shall be responsible for them as depositaries, provided that notice was given to them, or to their employees, of the effects brought by the guests and that, on the part of the latter, they take the precautions which said hotel-keepers or their substitutes advised relative to the care and vigilance of their effects.

·         Given the facts established in court, Durban Apartments is liable for the loss of See’s vehicle.