G.R. No. L-54470

G.R. No. L-54470 May 8, 1990 PHILIPPINE AIRLINES, INC., petitione, !". H#N. C#$R% #& APPEALS an' NA%I(I)A) ()A. )E PA)ILLA, "*+"tit*te' +y e ea ei", na/ey A$G$S%# A. PA)ILLA, ALER%# A. PA)ILLA, CRESENCI# R. AES 2epe"entin te 'e3ea"e' I"a+e Pa'ia A+e" MIG$EL A. PA)ILLA an' RAM#N A. PA)ILLA, e"pon'ent". Si*ion Reyna, Monte3io  #n"ia6o o petitione. A/+o"io Pa'ia, Me/pin  Reye" La #3e"  o pi!ate e"pon'ent". GRI:#-A;$IN#, <. FACTS:

#n No!e/+e =>, 19?0, at 5>0 P.M., Stait &it No. =? o te Piippine Ai Line" 2eeate PAL too6 o@ o/ te Man'*iao Aipot in Ioio, on it" ay to Mania, it >> pe"on" on +oa', in3*'in te pane" 3o/pe/ent. %e pane 'i' not ea3 it" 'e"tination +*t 3a"e' on Mt. a3o, Min'oo, one o* an' Bteen /in*te" ate ta6eo@ .%e pane a" I'entiBe' a" PI-C1>>, a )C-> type ai3at /an*a3t*e' in 194= an' a3*ie' +y PAL in 1948. It a' Don a/o"t 18,000 o*" at te ti/e o it" i-ate' Dit. It a' +een 3etiBe' 3 etiBe' a" aioty +y te Ci!i Aeona*ti3" A'/ini"tation. A/on te ataitie" a" Ni3ano Pa'ia o a" a pa""ene on te "ta 3o""e' Dit. He a" =9 yea" o', "ine. Hi" /ote, Nati!i'a' A. ('a. 'e Pa'ia, a" i" ony ea ei. A" a e"*t o e "on" 'eat, M". Pa'ia Be' a 3o/paint 2i 3 a" a/en'e' ti3e aain"t PAL, 'e/an'in pay/ent o P?00,000 a" a3t*a an' 3o/pen"atoy 'a/ae", p*" ee/pay 'a/ae" an' P?0,000 a" attoney" ee". In it" an"e, PAL 'enie' tat te a33i'ent a" 3a*"e' +y i t" neien3e o tat o any o te pane" Dit 3e, an' tat, /oeo!e, te 'a/ae" "o*t ee e3e""i!e an' "pe3*ati!e. #n No!e/+e =>, 19?4, te tia 3o*t i""*e' a pe-tia o'e e*iin te patie" to Be on o +eoe  0, 19?5 a "tip*ation o a3t", o a neati!e /anie"tation in 3a"e tey aie' to "*+/it a "tip*ation. #n <*ne 8, 19?5, te patie" "*+/itte' a patia "tip*ation o a3t" po!i'in a" oo" 1. Painti@ i" te te i'o o o te ate ate A+eto R. Pa'ia Pa'ia &iipino, &iipino, o ea ae, an' a e"i'ent e"i'ent o an' an' it po"ta a''e"" at No. 970 2o/ey No. =47 Ga. Soano St., San Mi*e, Mania, ie 'een'ant Piippine Ai Line", In3. i" a 3opoation '*y oaniFe', ei"tee' an' ei"tin *n'e an' +y !it*e o te a" o te Piippine", enae', a" a 3o//on 3aie in te +*"ine"" o 3ayin o tan"potin +y ai pa""ene" an' oo'", o@ein it" "e!i3e" to te p*+i3 a" "*3 o 3o/pen"ation, it o3e" at Ma6ati '., Ma6ati, RiFa. =. Ni3ano A. Pa'ia a" +on +on on 1. He a" a "on +y a* /aiae o painti@ an' A+eto R. Pa'ia, o 'ie' on Septe/+e =, 1948. >. Ni3ano A. A. Pa'ia Pa'ia Bni"e' te ee/entay ee/entay a'e" in 194>, i "3oo "3oo in 1947, a'*ate' te Re"e!e #3e" Co*"e 2Inanty a"i3 Co*"e A/e' &o3e" o te Piippine" in 1949, an' a'*ate' it te 'eee o a3eo o Liteat*e in 195 1 an' te 'eee o a3eo o La" in 1954, a in Ateneo 'e Mania. 4. He a" a'/itte' +y te S*pe/e S*pe/e Co*t o te Piippine" to pa3ti3e a on , 19?0, e a" a""o3iate' it te a o3e" o Senato A/+o"io Pa'ia, +ote o i" ate, A+eto R. Pa'ia. 5. At te ti/e o i" 'eat, e a" te Pe"i'ent Pe"i'ent an' Genea Manae o te Pa'ia Sippin Co., In3. He a" a"o (i3e-Pe"i'ent an' %ea"*e o te Aie' A ie' #!e"ea" %a'in Co., In3. ?.

He a" a /e/+e /e/+e o te oa' oa' o )ie3to" o o te <*nio Ca/+e Ca/+e o Co//e3e 2
Intenationa an' Cai/an o it" Co//ittee on Go!en/enta A@ai" o te te/ 19?0-19?1. %i" Co//ittee on Go!en/enta A@ai" p*+i"e' a pa/pet entite' Goo' Go!en/ent i" o* *"ine"", o i3 te 'e3ea"e' a" na/e'  it ei"ty No. PI-C1>>, on Sta Lit &it No. =? +o*n' o Mania o/ te City o Ioio on No!e/+e =>, 19?0, a" 6ie' en "ai' pane 3a"e' in te aea o Mo*nt a3o, #ienta Min'oo 8. Ni3ano A. Pa'ia 'ie' "ine, ea!in a" i" neae"t o 6in an' "oe eie"" to i" e"tate i" /ote te painti@ eein it o/ e a" e"i'in at te ti/e o i" 'eat at 970 Ga. Soano St., Mania. 9. %e ai3at 2PI-C1>> tat 3a"e' on Mt. a3o, #ienta Min'oo on No!e/+e =>, 19?0, a" a tin-enine pa""ene pane o te Piippine Ai Line" o te )C-> type. It a" /an*a3t*e' +y )o*a" Ai3at Copoation o te $nite' State" o te $.S. A/y an' a" p*3a"e' o/ te atte +y te Co//e3ia Ai ine", In3., on Septe/+e =5, 194?. %e 'een'ant Piippine Ai Line" a3*ie' te pane o/ te Co//e3ia Ai Line", In3., on #3 to+e 15, 1948. %e ai3at a" ei"tee' +y Piippine Ai Line" it te Ci!i Aeona*ti3" A'/ini"tation a" PI-C14= on May 10, 1949. #n #3to+e 15, 195>, PI-C14= /et it a non-ata a33i'ent at Piat, %**eaao, Caayan. PAL e*e"te' te Ci!i Aeona*ti3" A'/ini"tation o a 3ane in te i'entiB3ation /a6. Sai' e*e"t a" ante' an' te ei"tation n*/+e a" 3ane' o/ PI-C14= to PI-C1>> on <*y =9, 1954. A" oD No!e/+e ==, 19?0, te 'ay +eoe te ata 3a" on Mt. a3o, PI-C1>> a' a tota Dyin ti/e o 17,99?>> o*". 10. PI-C1>> a" i""*e' a 3etiB3ate o aiotine"" +y te Ci!i Aeona*ti3" A'/ini"tation on Septe/+e 1>, 19?0 i3 a" to epie on Septe/+e 1=, 19?1J a 3opy o i3 i" atta3e' eeto a" Ei+it I an' /a'e a pat o ti" "tip*ation. 11. #te a3t" on i3 te patie" 3annot aee i +e "*+Ke3t to poo at te tia. 2pp. >4->9, Re3o' on AppeaJ p. 11 7, Roo. #n teeo, a poto"tat o i3 i" atta3e' eeto a" Ei+it A. =. %at in "ai' Ei+it A, te 3o*/n" *n'e te ea'in Ae , ee" to te ae o te in'i!i'*a, an' te 3o*/n" oe  ee" to te 3oe"pon'in n*/+e o yea" te in'i!i'*a" epe3te' to i!e. %*", *n'e te 3o*/n Ae , a pe"on ae' =9, te 3oe"pon'in ie epe3tan3y o "ai' pe"on *n'e 3o*/n oe i" 4=.?0 yea"J an' *n' e "ai' 3o*/n Ae  a pe"on ae' ?0, 3oe"pon'in ie epe3 tan3y o "ai' pe"on *n'e 3o*/n  oe i" 17.90 yea"J >. %at Sa!a'o . Sa!o"a" &iipino Epeien3e Motaity %a+e, in3*'in te ta+e o ie epe3tan3y ae *"e' +y te Piippine Intenationa ie In"*an3e Co., te Stein Lie In"*an3e Co., te Ca'ina Lie In"*an3e Co., an' Sta ie In"*an3e Co., an' tat te "a/e a" +een appo!e' +y te In"*an3e Co//i""ione o te *"e o ie in"*an3e 3o/panie" 'oin +*"ine"" in te Piippine" a" "on +y a 3etiB3ate i""*e' +y "ai' Co//i""ione i3 i" atta3e' eeto a" Ei+it J 4. %at te +oo6 o Ne"on an' aen, Con"*tin A3t*aie" o St. L*i" an' an"a" 3itie", Mi""o*i, entite' Pin3ipa Motaity %a+e", 3ontain" a ta+e o 3o/pai"on o 3o/pete ie epe3tan3y +a"e' on pin3ipa /otaity ta+e" *"e' +y ie in"*an3e 3o/panie", a poto"tat o i3 i" i6ei"e atta3e' eeto a" Ei+it" C, C-, C-=, an' C->J 5. %at o te ie epe3tan3y +a"e' on te 'i@eent "y"te/" /entione' in "ai' Ei+it" C, C-1, C-= an' C->, te ooin ae a"o *"e' in te Piippine" o ie in"*an3e p*po"e" 2a te A/ei3an Epeien3e appeain in Ei+it , Bt 3o*/n" on +ot pae", te B"t 3o*/n 3oe"pon'in to te ae o te in'i!i'*a 2pae" 1= an' 1> o te +oo6J 2+ te Stan'a' In'*"tia, appeain in te "a/e Ei+it , "it 3o*/n on +ot pae" 2pae" 1= an' 1> o te +oo6J an' 23 te 1941 Co//i""ione Stan'a' #'inay, o CS# 1941 o "ot, appeain in Ei+it -1, ti'

3o*/n, on +ot pae" 2pae" 14 an' 15 o te +oo6. ?. %at te /ateiaity an' appi3a+iity "i3 o te ie epe3tan3y ta+e" "on in Ei+it A o Ei+it" C, C-1, C-= an' C-> ae et to te K*'/ent o te Honoa+e Co*t. 2pp. >9-4=, Re3o' on AppeaJ p. 117, Roo.

 %e patie" e"e!e tei it to aee to a''itiona "tip*ation o a3t" an'o to a''*3e e!i'en3e on ote /atte" not 3o!ee' +y ti" "tip*ation. A ei+it" /entione' an' i'entiBe' ae atta3e' to ti" "tip*ation. 2pp. 4=-4?, Re3o' on AppeaJ p. 117, Roo. )*in te eain on Septe/+e 4, 197=, te patie" "tip*ate' tat tey ee epo'*3in te te"ti/onia an' 'o3*/entay e!i'en3e pe"ente' in Ci!i Ca"e" No". 57=8 an' =790 o te Co*t o &i"t In"tan3e o Ioio, ai"in o*t o te "a/e a33i'ent. CetiBe' 3opy o "ai' tan"3ipt o "tenoapi3 note" ee ten "*+/itte' to te tia 3o*t. Pi!ate e"pon'ent Pa'ia te"tiBe' tat e "on, Ni3ano Pa'ia, pio to i" 'eat, a" =9 yea" o', "ine, in oo' eat, Pe"i'ent an' Genea Manae o Pa'ia Sippin Co/pany at Ioio City, an' a ea a""i"tant o te Pa'ia La #3eJ tat *pon eanin o te 'eat o e "on in te pane 3a", "e "*@ee' "o36 an' /enta an*i", +e3a*"e e "on o a" "ti "ine a" i!in it eJ an' tat Ni3ano a' a ie in"*an3e o P=0,000, te po3ee'" o i3 ee pai' to i" "i"te. E'*a'o Mate, /anae o te Aie' #!e"ea" %a'in Co/pany, te"tiBe' tat te 'e3ea"e', Ni3ano Pa'ia, a" one o te in3opoato" o te 3o/pany an' a"o it" !i3e-pe"i'ent an' tea"*e, e3ei!in a /onty "aay o P455. I"aa3 M. Reye", a*'ito o te Pa'ia Sippin Co/pany, 'e3ae' tat te 'e3ea"e' a" te Pe"i'ent an' Genea o te B/ an' e3ei!e' a "aay o P1,500 /onty.  %e tia 3o*t in it" 'e3i"ion "tate' tat on Ma3 19, 1970, it a" /anie"te' in 3o*t tat te patie" aee' tat tey i a+i'e it ate!e 'e3i"ion te S*pe/e Co*t /ay a!e in "i/ia 3a"e" in!o!in te "a/e aipane 3a" a33i'ent ten pen'in +eoe ote 3o*t" pen'in 'e3i"ion in S*pe/e Co*t 2p. 51, Re3. on AppeaJ p. 117, Roo #n A**"t >1, 197>, te tia 3o*t po/*ate' a 'e3i"ion, te 'i"po"iti!e potion o i3 ea'" HERE&#RE, K*'/ent i" ee+y en'ee' o'ein te 'een'ant Piippine Ai Line", In3. to pay te painti@ Nati!i'a' A. ('a. 'e Pa'ia te "*/ o P477, 000.00 a" aa' o te epe3te' in3o/e o te 'e3ea"e' Ni3anoJ P10,000.00 a" /oa 'a/ae"J P10,000.00 a" attoney" ee"J an' to pay te 3o"t". 2pp. 59-?0, Re3o' on AppeaJ p. 117, Roo. #n Appea to te Co*t o Appea" 2CA-G.R. No. 5?079-R 'ate' <*y 17, 1980, te 'e3i"ion o te tia 3o*t a" a/e' in toto. ISSUE: -

 ete te in'e/nity o te 'eat o pi!ate e"pon'ent" "on, te ate Ni3ano A. Pa'ia "o*' +e 3o/p*te' on te +a"i" o i" ie epe3tan3y, a" te tia 3o*t an' te Co*t o Appea" 'i', ate tan te ie epe3tan3y o pi!ate e"pon'ent, i" ony ea ei, a" te petitione 3onten'"

HELD :

&o te "ette/ent o te i""*e at an', tee ae eno* appi3a+e o3a a" an' K*i"p*'en3e. $n'e Ati3e 17?4 an' Ati3e ==0?21 o te Ci!i Co'e, te aa' o 'a/ae" o 'eat i" 3o/p*te' on te +a"i" o te ie epe3tan3y o te 'e3ea"e', not o i" +eneB3iay. %e ati3e" po!i'e At. 17?4. )a/ae" in 3a"e" 3o/pi"e' in ti" Se3tion "a +e aa'e' in a33o'an3e it %ite O(III o ti" oo6, 3on3enin )a/ae". Ati3e ==0? "a a"o appy to te 'eat o a pa""ene 3a*"e' +y te +ea3 o 3onta3t +y a 3o//on 3aie.

At. ==0?. %e a/o*nt o 'a/ae" o 'eat 3a*"e' +y a 3i/e o *a"i- 'ei3t "a +e at ea"t tee to*"an' pe"o", e!en to* tee /ay a!e +een /itiatin 3i3*/"tan3e". In a''ition 21 %e 'een'ant "a +e ia+e o te o"" o te eanin 3apa3ity o te 'e3ea"e', an' te in'e/nity "a +e pai' to te ei" o te atteJ "*3 in'e/nity "a in e!ey 3a"e +e a""e""e' an' aa'e' +y te 3o*t, *ne"" te 'e3ea"e' on a33o*nt o pe/anent py"i3a 'i"a+iity not 3a*"e' +y te 'een'ant, a' no eanin 3apa3ity at te ti/e o i" 'eatJ . . . 2E/pa"i" "*ppie'. In te 3a"e o )a!ia !". PAL, 49 SCRA 497 i3 i n!o!e' te "a/e tai3 pane 3a", ti" Co*t 'ete/ine' not ony PAL" ia+iity o neien3e o +ea3 o 3onta3t, +*t a"o te /anne o 3o/p*tin te 'a/ae" '*e te painti@ teein i3 it +a"e' on te ie epe3tan3y o te 'e3ea"e', Pe'o )a!ia, <. %i" Co*t e' t*"  %e 'e3ea"e', Pe'o )a!ia, <., a" "ine an' >0 yea" o ae en e 'ie'. At tat ae one" no/a ie epe3tan3y i" >>-1> yea", a33o'in to te o/*a 2=>  80->0 a'opte' +y ti" Co*t in te 3a"e o (ia Rey %an"it, In3. !". Co*t o Appea" on te +a"i" o te A/ei3an Epe3tan3y %a+e o Motaity o te A3t*aia o Co/+ine' Epeien3e %a+e o Motaity. Hoe!e, ato* te 'e3ea"e' a" in eati!ey oo' eat, i" /e'i3a i"toy "o" tat e a' 3o/paine' o an' +een teate' o "*3 ai/ent" a" +a36a3e", 3e"t pain" an' o33a"iona  eein" o tie'ne"". It i" ea"ona+e to /a6e an aoan3e o te"e 3i3*/"tan3e" an' 3on"i'e, o p*po"e" o ti" 3a"e, a e'*3tion o i" ie epe3tan3y to =5 yea". S# #R)ERE). Na!a"a, an' Me'ia'ea, <<., 3on3*. C*F an' Gan3ay3o, <<., too6 no pat.