G.R. No. 160039.

June 29, 2004

RAYMUNDO ODANI SECOSA, EL BUENASENSO SY and DASSAD WAREHOUSING and FACTS:
PORT SERVICES, INCORPORATED, petitioners, vs. HEIRS OF ERWIN SUAREZ On June 27, 1996, at around 4:00 p.m., Erwin Suarez Francisco, an eighteen year old third year physical therapy
FRANCISCO, respondents. student of the Manila Central University, was riding a motorcycle along Radial 10 Avenue, near the Veteran Shipyard
Gate in the City of Manila.

Petitioner was driving an Isuzu cargo truck on the same road. The truck was owned by petitioner, there was
another truck in fornt of the petitioner ( gravel and sand );
Civil Law; Negligence; Damages; When an injury is caused by the negligence of an employee, there instantly
arises a presumption that there was negligence on the part of the employer either in the selection of his employee or
Secosa overtook the sand and gravel truck, he bumped the motorcycle causing Francisco to fall. The rear wheels
in the supervision over him after such selection; Presumption may be rebutted by a clear showing on the part of the
of the Isuzu truck then ran over Francisco, which resulted in his instantaneous death. Fearing for his life, petitioner
employer that it exercised the care and diligence of a good father of a family in the selection and supervision of his
Secosa left his truck and fled the scene of the collision.
employee
3

Same; Same; Same; Employer must not merely present testimonial evidence to prove that he observed the Respondents, the parents of Erwin Francisco, thus filed an action for damages against the petitioner .
diligence of a good father of a family in the selection and supervision of his employee, but he must also support such
testimonial evidence with concrete or documentary evidence.— The court rendered a decision in favor of herein respondents, and pay for damages.

Same; Same; Same; Corporation Law; Veil of Corporate Fiction; Petitioner El Buenasenso Sy cannot be held ON appeal to the CA, the CA affirmed the ruling of the RTC.
solidarily liable with his co-petitioners; A corporation is invested by law with a personality separate from that of its
stockholders or members; Mere ownership by a single stockholder or by another corporation of all or nearly all of
the capital stock of a corporation is not in itself sufficient ground for disregarding the separate corporate Petitioners appealed the decision to the Court of Appeals, which affirmed the appealed decision in toto.
personality.—We find that petitioner El Buenasenso Sy cannot be held solidarily liable with his co-petitioners. While
it may be true that Sy is the president of petitioner Dassad Warehousing and Port Services, Inc., such fact is not by Issue: WON PETITIONER SY CAN BE HELD SOLIDARILY LIABLE
itself sufficient to hold him solidarily liable for the liabilities adjudged against his co-petitioners. It is a settled precept
in this jurisdiction that a corporation is invested by law with a personality separate from that of its stockholders or
members. It has a personality separate and distinct from those of the persons composing it as well as from that of any RULING: NO, SY CANNOT BE HELD SOLIDARILY LIABLE.
other entity to which it may be related. Mere ownership by a single stockholder or by another corporation of all or
nearly all of the capital stock of a corporation is not in itself sufficient ground for disregarding the separate corporate
El Buenasenso Sy cannot be held solidarily liable with his co-petitioners. While it may be true that Sy is the president of petitioner
personality. A corporation’s authority to act and its liability for its actions are separate and apart from the individuals Dassad Warehousing and Port Services, Inc., such fact is not by itself sufficient to hold him solidarily liable for the liabilities adjudged
who own it. against his co-petitioners. It is a settled precept in this jurisdiction that a corporation is invested by law with a personality
separate from that of its stockholders or members.
Same; Same; Same; Same; Same; For the separate juridical personality of a corporation to be disregarded,
the wrongdoing must be clearly and convincingly established.—The so-called veil of corporation fiction treats as It has a personality separate and distinct from those of the persons composing it as well as from that of any other entity to
separate and distinct the affairs of a corporation and its officers and stockholders. As a general rule, a corporation will which it may be related.
be looked upon as a legal entity, unless and until sufficient reason to the contrary appears. When the notion of legal
entity is used to defeat public convenience, justify wrong, protect fraud, or defend crime, the law will regard the Mere ownership by a single stockholder or by another corporation of all or nearly all of the capital stock of a corporation is
corporation as an association of persons. Also, the corporate entity may be disregarded in the interest of justice in not in itself sufficient ground for disregarding the separate corporate personality.
such cases as fraud that may work inequities among members of the corporation internally, involving no rights of the
public or third persons. In both instances, there must have been fraud and proof of it. For the separate juridical
A corporation’s authority to act and its liability for its actions are separate and apart from the individuals who own it.
personality of a corporation to be disregarded, the wrongdoing must be clearly and convincingly established. It
cannot be presumed.
The records of this case are bereft of any evidence tending to show the presence of any grounds enumerated
above that will justify the piercing of the veil of corporate fiction such as to hold the president of Dassad
Same; Same; Same; Moral damages are awarded to allow the plaintiff to obtain means, diversion or Warehousing and Port Services, Inc. solidarily liable with it.
amusements that will serve to alleviate the moral suffering he has undergone due to the defendant’s culpable action
and must, perforce, be proportional to the suffering inflicted.—Moral damages are emphatically not intended to The Isuzu cargo truck which ran over Erwin Francisco was registered in the name of Dassad
enrich a plaintiff at the expense of the defendant. They are awarded to allow the former to obtain means, diversion or Warehousing and Port Services, Inc., and not in the name of El Buenasenso Sy.
amusements that will serve to alleviate the moral suffering he has undergone due to the defendant’s culpable action
and must, perforce, be proportional to the suffering inflicted.
 WHEREFORE, the petition is DENIED. The assailed decision is AFFIRMED with the MODIFICATION that
petitioner El Buenasenso Sy is ABSOLVED from any liability adjudged against his co-petitioners in this case.