Sunday, April 14, 2019

Baritua & Bitancor v CA

G.R. No. 82233 March 22, 1990
Art. 1240 – Payment shall be made to person in whose favor obligation has been constituted.

Facts:
·          The tricycle driven by the deceased Bienvenido Nacario figured in an accident with a bus driven by Bitancor and owned and operated by Baritua.
·          No criminal case was ever instituted, but only extra-judicial settlement.
·          The petitioners and bus insurer (Philippine First Insurance Company, Inc.) negotiated Nacario's widow, who received P18,500.00.
·          The widow Alicia executed a "Release of Claim" and an affidavit of desistance.
·          After more than one year, the respondents, who are the parents of the deceased Nacario, filed a complaint against the petitioners to be indemnified for the death of their son, for the funeral expenses incurred by reason thereof, and for the damage for the tricycle which they (the private respondents) only loaned to the victim.
·          The court a quo dismissed the complaint, but the CA ruled that the release executed by Alicia did not discharge the liability of the petitioners because she was not the one who suffered these damages arising from the death of the respondents’ son.

Issue:
WoN Alicia, the spouse and the one who received the petitioners' payment, is entitled to it.

Held:
            Yes, the Court holds that Alicia is entitled to the payment for damages because she is among the persons to whom payment to extinguish an obligation should be made as enumerated in Article 1240 of the Civil Code.
            Art 1240. Payment shall be made to the person in whose favor the obligation has been constituted, or his successor in interest, or any person authorized to receive it.
            Certainly there can be no question that Alicia and her son with the deceased are the successors in interest referred to in law as the persons authorized to receive payment. The petitioners therefore acted correctly in settling their obligation with Alicia as the widow of Bienvenido and as the natural guardian of their lone child.
             Thus, the petition is DENIED.

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