National Power Corporation v. Court of Appeals

NATIONAL POWER CORPORATION, ET AL. V.
COURT OF APPEALS
G.R. NO. 103442-45, MAY 21, 1993
FACTS:
National Power Corporation (NPC) maintains a hydroelectric plant in the Angat River,
Benjamin Chavez was the plant supervisor. Meanwhile Rayo et al were residents of
Norzagaray, Bulacan. On the evening of October 26, 1978, NPC allegedly caused the
inundation of a town in Norzagaray when it released water through the spillways of the
Angat Dam at the height of typhoon “Kading” as the Dam’s water level went beyond the
maximum limit. The flooding resulted in the drowning of the members of the household
of Rayo, together with their animals; their properties were also washed away. The
release of water was made despite NPC’s knowledge of the impending typhoon, as
early as October 24 and its monitoring of the water level. Rayo et al filed four separate
complaints for damages against NPC. In its answer, NPC argued that the damage
caused to Rayo was due to a fortuitous event, among others. The CFI absolved NPC for
lack of sufficient and credible evidence. The CA reversed, holding NPC and Chavez
jointly and severally liable to Rayo et al. The SC affirmed, NPC liable.
ISSUE: What was the proximate cause of the damage suffered by Rayo, et al.?
RULING:
Procedural note: This issue was already raised in an earlier case involving the same
incident, whereby the Supreme Court held that the proximate cause of the damage was
NPC’s negligent act. This ruling was binding on the Court. Also, the Court found reason
to review the factual findings of the Court of Appeals.
The National Power Corporation was duly warned of the typhoon as its coming was
published in headlines of a newspaper of national circulation. There were also radio
announcements regarding the same. Yet NPC maintained a water level beyond
maximum despite its knowledge of the safe level. From October 24, until the Dam’s
water release on the evening of October 26, the water level was maintained at
maximum with very little opening of the spillways. Furthermore, the “early warning
notice” given by NPC were also found insufficient: 1) it did not prepare or warn the
residents of the volume of water to be released, they should have been advised to
evacuate, and 2) it was not given to the proper municipal officials for dissemination, but
rather to a policeman.
On the merits, the Supreme Court held that National Power Corporation cannot invoke
the force majeure or the act of God doctrine to exempt itself from liability since it was
not entirely free from fault – one of the requisites for the application of Art. 1174 CC, to
wit: (a) the cause of the breach of the obligation must be independent of the will of the
debtor; (b) the event must be either unforeseeable or unavoidable; (c) the event must
be such as to render it impossible for the debtor to fulfill his obligation in a normal
manner; and (d) the debtor must be free from any participation in, or aggravation of the
injury to the creditor. If a person’s negligence concurs with an act of God, the whole
event is humanized and the person causing damage to another cannot exempt himself
from liability. If upon the happening of a fortuitous event or an act of God, there concurs
a corresponding fraud, negligence, delay or violation or contravention in any manner of
the tenor of the obligation as provided for in Article 1170 of the Civil Code, which results
in loss or damage, the obligor cannot escape liability. The principle embodied in the act
of God doctrine strictly requires that the act must be one occasioned exclusively by the
violence of nature and all human agencies are to be excluded from creating or entering
into the cause of the mischief. When the effect, the cause of which is to be considered,
is found to be in part the result of the participation of man, whether it be from active
intervention or neglect, or failure to act, the whole occurrence is thereby humanized, as
it were, and removed from the rules applicable to the acts of God

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NATIONAL POWER CORPORATION, ET AL. V.

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