G.R. No. L-15805; February 28, 1961
THE PEOPLE OF THE PHILIPPINES, plaintiff-appellant, vs. JESUS VERANO, defendant-appellant.

FACTS

On June 22, 1953, a Mindanao Bus Company truck driven by Jesus Verano met with an accident, causing the death of passenger Dominador Paras and injuring twenty-three others. The bus company subsequently paid various sums to the victims, including P3,000 to the heirs of the deceased Dominador Paras. In consideration, the widow, on her behalf and in the name of her minor children, executed a “Deed of Waiver and Renunciation” in favor of the Mindanao Bus Company, releasing it from all obligations. Verano was then charged with Homicide with Multiple Physical Injuries through Reckless Imprudence. The trial court convicted him and ordered him to indemnify the heirs of Paras in the sum of P5,000, with subsidiary imprisonment in case of insolvency. Verano appealed, contesting the civil liability award, arguing the waiver extinguished his liability.

ISSUE

The core issues are whether the waiver executed by the heirs in favor of the employer bus company also extinguishes the personal civil liability of the accused employee-driver, and the validity of that waiver concerning the minor heirs’ rights.

RULING

The Supreme Court modified the trial court’s decision, reducing the civil indemnity. The legal logic proceeds from the distinct yet related civil liabilities under the Revised Penal Code. The accused driver is the person principally civilly liable for the felony committed (Art. 100, RPC). His employer, the bus company, is subsidiarily liable under Article 103 of the RPC. The waiver executed by the heirs was explicitly in favor of the Mindanao Bus Company. Since the company’s subsidiary liability is ultimately answerable for the driver’s civil obligation in case of his insolvency, the payment of P3,000 by the company operated as a partial extinguishment of that very civil liability for which Verano is principally liable. To allow a full P5,000 award against Verano would enable the heirs to potentially recover twice from the same source (through the company’s subsidiary liability), which is inequitable. However, the waiver concerning the minor children’s shares was invalid. The widow, as a parent, lacked the authority to compromise the minors’ claims without court approval, as a compromise is an act of strict ownership beyond mere administration. Consequently, the waiver was effective only for the widow’s share. Thus, from the total P5,000 indemnity, the P3,000 payment was deductible, leaving a balance of P2,000 for which Verano remained liable. The award was accordingly reduced to P2,000, with subsidiary imprisonment subject to legal limits.