Magboo v Bernardo

URBANO MAGBOO and EMILIA C. MAGBOO v. DELFIN BERNARDO G.R. No. L-16790 April 30, 1963 Makalintal

FACTS: Cesar Magboo, an 8-year old, was killed in a jeepney accident. The subject jeepney was owned by Delfin Bernardo who agreed to let Conrado Roque use his jeepney for the sum of P8, and that whatever earnings Roque could make in transporting passengers within Manila, would belong entirely to him (Roque). The parents of Cesar, Sps. Magboo, filed a criminal case for homicide thru reckless imprudence against the jeepney driver, Roque. Upon arraignment, he pleaded guilty and was sentenced to 6 mos imprisonment with accessory penalties and to pay P3,000 to the heirs as indemnity. Roque served his sentence but he was not able to pay the indemnity because he was insolvent. Hence, Spouses Magboo filed an action against Bernardo for the enforcement of his subsidiary liability as employer in accordance with Art. 103 of the RPC. Trial Court ruled in favor of spouses Magboo.

ISSUE: WON an employer-employee relationship exists between a jeepney-owner and a driver under a "boundary system" arrangement

HELD: Yes National Labor Union v. Dinglasan: The features which characterize the "boundary system" — namely, the fact that the driver does not receive a fixed wage but gets only the excess of the receipt of fares collected by him over the amount he pays to the jeepowner and that the gasoline consumed by the jeep is for the account of the driver — are not sufficient to withdraw the relationship between them from that of employer and employee. To exempt from liability the owner of a public vehicle who operates it under the "boundary system" on the ground that he is a mere lessor would be not only to abet flagrant violations of the Public Service law but also to place the riding public at the mercy of reckless and irresponsible drivers - reckless because the measure of their earnings depends largely upon the number of trips they make and, hence, the speed at which they drive; and irresponsible because most if not all of them are in no position to pay the damages they might cause.