This is the case of Mang Ramon, a jeepney operator who had no franchise or Certificate of Public Convenience (CPC) to operate his passenger jeepney. Despite this, he was able to operate his vehicle along a fixed route in a southern city through the kabit system.
At first, he attached his jeepney to the franchise of Aling Nena. However, one of Aling Nena’s jeepneys was involved in a tragic accident that claimed several lives. Fearing that Aling Nena might eventually be held liable in the pending case and that his jeepney is registered in her name under the kabit system and could be attached to satisfy any judgment against her, Mang Ramon decided to transfer his jeepney to another franchise holder.
He requested Aling Nena to execute a Deed of Sale. The jeepney was first transferred to the name of his sister-in-law and was subsequently transferred to Mang Ernesto, another jeepney franchise owner. Thereafter, Mang Ramon continued operating the jeepney under Mang Ernesto’s franchise. The driver remitted a daily boundary of P16.80 to Mang Ramon.
Unfortunately, one day, the driver figured in an accident after hitting the town judge and the judge’s wife while they were crossing the street. The incident resulted in the death of the judge and injuries to his wife. Consequently, the judge’s wife and children filed a case against the driver, Mang Ernesto, the franchise owner in whose name the jeepney was registered, and Mang Ramon, the actual owner of the vehicle. Mang Ramon denied liability, arguing that he was not the registered owner of the jeepney.
Was Mang Ramon correct? No.
Mang Ramon is liable. Although the jeepney was not registered in his name, he was the actual owner of the passenger vehicle. The actual owner of a passenger jeepney is solidarily liable with the registered franchise owner for damages arising from its operation. Moreover, the registered owner whose franchise is merely being used has the right to be indemnified by the real or actual owner for any amount that the registered owner may be required to pay as damages for the injuries caused. (Jereos vs. Court of Appeals 117 SCRA 395).