Upon learning of Melquiades fate, Florentina immediately went to the office
of Candano Shipping in Manila to claim the death benefits of her husband but it
refused to pay.[6]
Such refusal prompted Florentina to institute on 31 January 1997, an action
seeking indemnity for the death of her husband against Candano Shipping before
the RTC of Manila, Branch 20. She grounded her case on the provision of Article
1711[7] of the New Civil Code, which imposes upon the employer liability for the
death of his employee in the course of employment, even if the death is caused by
a fortuitous event. Accordingly, Florentina prayed that actual, moral and
exemplary damages including attorneys fees, be awarded in her favor.[8]
In its Answer,[9] Candano Shipping countered that Florentina had no cause of
action against it because the death of Melquiades was not yet an established fact
since he was merely reported missing upon the sinking of M/V David, Jr. The
filing of the case before the RTC therefore was premature for she should have
waited until the body of Melquiades could be recovered or until the lapse of time
which would render the provision of Article 391 of the New Civil Code[10] on
presumptive death operative.
The RTC resolved the controversy in favor of Florentina and ratiocinated that the
provision of Article 391 of the New Civil Code on presumptive death had become
operative since the period of four years had already elapsed since Melquiades was
reported missing upon the sinking incident which occurred on 27 March 1996. In a
Decision[11] promulgated on 15 February 2001, the RTC ordered Candano Shipping
to indemnify Florentina for the death of her husband, in the following amounts:
WHEREFORE, premises considered, judgment is hereby rendered
ordering
defendant Candano Shipping
Lines,
Inc.
to
indemnify
plaintiff Forentina J. Sugata-on the amount ofP988,400.00 as actual
damages, P100,000.00 as moral damages P50,000.00 as exemplary damages and
10% of the amount due as and for attorneys fees plus the cost of suit.