Shell Company of the Philippines vs Firemen

Shell Company of the Philippines vs Firemen’s Insurance FACTS: On September 3, 1947, a Plymouth car owned by Salvador R. Sison was brought to the Shell Gasoline and Service Station located at the Marques de Camillas and Isaac Peral Streets, in Manila for washing, greasing, and spraying. The said gas station was operated by Porfino de la Fuente. De la Fuente and Sison agreed to do service upon payment of Php 8.00 by the latter. The car was placed on a hydraulic lifter for greasing. Some parts of the car couldn’t be reached by the greasemen, the lifter was lowered. While being lowered, the car swung and fell from the platform. The said car was insured against loss or damage by Firemen’s Insurance Company of Newark, New Jersey and Commercial Casualty Insurance Company, jointly for the sum of Php 10,000.00. The insurance companies after paying the sum of Php 1,651.38 for the damage and charging the balance of Php 100.00 to Salvador Sison in accordance with the terms of the insurance contract filed this action together with Sison for the recovery of the total amount of the damage from the defendants on the ground of negligence. ISSUE: Whether De la Fuente, is an agent or independent contractor of the company? HELD: The finding of the Court of Appeals that the operator was an agent of the company and not an independent contractor should not be disturbed. De la Fuente was merely an agent of the station “by grace” of the defendant company which could and did remove him as it pleased; that all the equipment needed to operate the station was one owned by the company which took charge of their proper care and maintenance despite the fact that they were loaned to him; the company did not leave the fixing price for the gasoline to him and the service station belonged to the company and bore its trade name and the operator (De la Fuente) sold its products. As the act of the agent or his

employees acting within the scope of authority, is the act of the principal, the breach of undertaking by an agent makes the principal liable. The company must answer for the negligent acts of its mechanic.