Fortuitous Event: An exemption from liability

You are an owner of a building and a sudden earthquake occurs which damages the property of your tenants. You took reasonable care in assuring the safety of the building and your tenants. The question is, who will ultimately be responsible for the damages caused by the earthquake? The answer is nobody as the earthquake was a fortuitous event.

The law provides that no person shall be held responsible for events which cannot be foreseen or from events that can be foreseen but are inevitable. This is a “fortuitous event”.

There are numerous exceptions to this law such as when the law or contract provides liability. Thus, two persons to a contract can stipulate if one will be liable even if there is a fortuitous event. Other exceptions include the nature of the obligation, if the debtor is guilty of bad faith or fraud, or if the debtor contributed to the loss.

By way of example, the following have been considered fortuitous events:

1. In Yap Kim Chuan v. Tiaoqui, 31 Phil 433, the Supreme Court ruled that heavy rainfall was a fortuitous event and the lessor was not liable for damages caused by such rainfall.

2. In Hernandez v. Chairman, Commission on Audit it was ruled that a special disbursing officer, who encashed two government checks, and eventually being a victim of robbery, cannot be faulted for the robbery of the 2 checks especially when he encashed the checks earlier so his co-workers could receive their salaries.

3. In Philcomsat vs. Globe Telecomm, the Supreme Court ruled that the termination of the RP-US Bases Agreement and withdrawal of US Military Forces was a fortuitous event.