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FEB Leasing and Finance Corp vs. Spouses Baylon et.al.

GR No. 181398, June 29, 2011

FACTS:
An Isuzu oil tanker, registered in the name of petitioner FEB Leasing and Finance Corporation and leased to BG Hauler, Inc., was running along Del Monte
Avenue in Quezon City. While executing a left turn upon reaching an intersection, the oil tanker hit Loretta Baylon, daughter of respondent spouses Sergio
and MaritessBaylon, who was then crossing the Del Monte Avenue. Due to the strong impact, Loretta was violently thrown away resulting to her death.

ISSUE:
Whether or not FEB Leasing and Finance Corp. (now BPI Leasing Corp.) should be held liable

RULING:
Yes. In accordance with the law on compulsory motor vehicle registration, with respect to the public and third persons, the registered owner of a motor
vehicle is directly and primarily responsible for the consequence of its operation regardless of who the actual vehicle owner might be. Well-settled is the rule
that the registered owner of the vehicle is liable for quasi-delicts resulting from its use. Thus, even if the vehicle has already been sold, leased or transferred
to another person at the time the vehicle figured in an accident, the registered vehicle owner would still be liable for damages caused by the accident. The
sale, transfer or lease of the vehicle, which is not registered with the Land Transportation Office, will not bind third persons aggrieved in an accident
involving the vehicle.

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