DIGEST - D.M. CONSUNJI, INC. vs. CA

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University of the Philippines College of Law

JOSECO, DAERYLLE G.

Case Name D.M. CONSUNJI, INC. , petitioner, vs. COURT OF APPEALS

Topic Article 6 of NCC: Rights may be waived, unless the waiver is contrary to law, public
order, public policy, morals, or good customs or prejudicial to a third person with a
right recognized by law.

Case No. | Date [G.R. No. 137873. April 20, 2001.]

Nature of the Petition for reversal of CA’s ruling granting damages to the respondent.
Case

Ponente KAPUNAN, J :

Doctrine Waiver requires a knowledge of the facts basic to the exercise of the right waived,
with an awareness of its consequences. That a waiver is made knowingly and
intelligently must be illustrated on the record or by the evidence

Petitioner D.M. CONSUNJI, INC., petitioner

Respondents COURT OF APPEALS and MARIA J. JUEGO, respondents.

RELEVANT FACTS

 D.M. Consunji Inc. is seeking the reversal of the decision of the CA affirming the RTC decision
which ordered it to pay damages to the Maria Juego -- private respondent and wife of the late
Jose A. Juego who was a construction worker of D.M. Consunji Inc. While he was working at the
elevator core of the 14th floor of the Renaissance Tower, the hanging platform he was on fell and
crushed him to death. The police report disclosed that the falling of the platform was due to the
removal or getting loose of the pin which was merely inserted to the connecting points of the
chain block and platform but without a safety lock.
 Thereafter, Jose Juego’s widow, Maria, filed a complaint for damages against the petitioner.
Petitioner raised, among other defenses, the widow’s prior availment of the benefits from the
State Insurance Fund, thereby precluding her from claiming damages under the Civil Code. And
that Maria could not assail that she does not know of the remedies available to her which violate
Article 3 of the Civil code.
 The RTC rendered a decision in favor of the widow Maria Juego.
 On appeal, the CA affirmed the decision of the RTC, finding the petitioner corporation negligent.

RATIO DECIDENDI

“Whether or not the private responded precluded from recovering damages under the Civil Code
because of her prior availment of the benefits from the State Insurance Fund?

No.
The respondent is not precluded from recovering damages under the Civil Code.

When a party having knowledge of the facts makes an election between inconsistent remedies, the
election is final in the absence of fraud by the other party. The choice of a party between inconsistent
remedies results in a waiver by election of the alternative remedy.

Waiver is the intentional relinquishment of a known right. It must be generally shown by the party
claiming a waiver that the person against whom the waiver is asserted had at the time actual or
constructive knowledge of the existence of the party’s rights or of all material facts upon which they
depended.

As a general rule a claimant has a choice of either to recover from the employer the fixed amounts set by
the Workmen’s Compensation Act or to prosecute an ordinary civil action against the tort fees or for
higher damages but he cannot pursue both courses of action simultaneously. An exception to said rule is
where a claimant who has already been paid under the Workmen’s Compensation Act may still sue for
damages under the Civil Code on the basis of supervening facts or developments occurring after he
opted for the first remedy.

In the case at bar, the CA held that private respondent’s case came under the exception because private
respondent was unaware of petitioner’s negligence when she filed her claim for death benefits from the
State Insurance Fund. This is a mistake of fact that will make this case fall under the exception. The CA
further held that she was also unaware of her rights because she testified that she only reached elementary
school and did not know what damages could be recovered from the death of her husband; and that she
did not know that she may also recover from the Civil Code more than from the Employee Compensation
Commission.

Petitioner’s argument under Article 3 has no merit as the application of Article 3 is limited to
mandatory and prohibitory laws. The rule in Floresca (jurisprudence) allowing private respondent a
choice of remedies is neither mandatory nor prohibitory. Accordingly, her ignorance thereof cannot be
held against her.

Hence, the respondent is not precluded from recovering damages under the Civil Code as she made a
waiver by election under a clear mistake of fact and without knowledge of her rights.

RULING
WHEREFORE, the case is REMANDED to the Regional Trial Court of Pasig City to determine whether
the award decreed in its decision is more than that of the ECC. Should the award decreed by the trial court
be greater than that awarded by the ECC, payments already made to private respondent pursuant to the
Labor Code shall be deducted therefrom. In all other respects, the Decision of the Court of Appeals is
AFFIRMED.

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