week 2 full cases

8/18/2019 Week 2 Full Cases

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Republic of the Philippines

SUPREME COURT

Manila

EN BANC

G.R. No. L-!"# $eb%ua%& '() *(+'

,OSE MENOA) plaintiff-appellant)

/s.

P01L1PP1NE A1R L1NES) 1NC.) 2efen2ant-appellee.

Manuel O. Chan) Re&es an2 &-Liaco fo% appellant.

aniel Me. Go3e4 an2 E3i52io Tan6uatco fo% appellee.

MONTEMA7OR) ,.8

The p%esent appeal b& plaintiff ,ose Men2o4a f%o3 the 2ecision of the Cou%t of $i%st1nstance of Ca3a%ines Su%) has co3e 2i%ectl& to this T%ibunal fo% the %eason that both

pa%ties) appellant an2 appellee) accepte2 the fin2in5s of fact 3a2e b& the t%ial cou%t an2

he%e %aise onl& 9uestions of la:. On ou% pa%t) :e 3ust also accept sai2 fin2in5s of fact of

the lo:e% cou%t.

1n the &ea% *(;#) appellant ,ose Men2o4a :as the o:ne% of the Cita Theate% locate2 in

the Cit& of Na5a) Ca3a%ines Su%) :he%e he use2 to eN Pictu%es 1nc. an2 Men2o4a) the fo%3e%

on Septe3be% *"th) *(;#) 2eli/e%e2 to the 2efen2ant Philippine Ai%lines PAL :hose

planes ca%%ie2 passen5e%s an2 ca%5o an2 3a2e %e5ula% t%ips f%o3 Manila to the Pili Ai%

Po%t nea% Na5a) Ca3a%ines Su%) a can containin5 the fil3 @0i3ala n5 Bi%hen@ consi5ne2

to the Cita Theate%. $o% this ship3ent the 2efen2ant issue2 its Ai% Da& Bill No. *"*

3a%=e2 E


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plane a%%i/in5 at the Ai% Po%t at Pili a little afte% fou% ocloc= in the afte%noon of the sa3e

2a&) Septe3be% *"th. $o% %easons not e


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not fo%eseen o% coul2 not ha/e been fo%eseen at the ti3e that the 2efen2ant accepte2 the

can of fil3 fo% ship3ent) fo% the %eason that neithe% the shippe% L>N Pictu%es 1nc. no% the

consi5nee Men2o4a ha2 calle2 its attention to the special ci%cu3stances atten2in5 the

ship3ent an2 the sho:in5 of the fil3 2u%in5 the to:n fiesta of Na5a) plaintiff 3a& not

%eco/e% the 2a3a5es sou5ht.

Counsel fo% appellant insists that the a%ticles of the Co2e of Co33e%ce %athe% than those

of the Ci/il Co2e shoul2 ha/e been applie2 in 2eci2in5 this case fo% the %eason that the

ship3ent of the can of fil3 is an act of co33e%ce that the cont%act of t%anspo%tation in

this case shoul2 be consi2e%e2 co33e%cial un2e% A%t. ;( of the Co2e of Co33e%ce

because it onl& in/ol/es 3e%chan2ise o% an ob6ect of co33e%ce but also the

t%anspo%tation co3pan&) the 2efen2ant he%ein) :as a co33on ca%%ie%) that is to sa&)

custo3a%il& en5a5e2 in t%anspo%tation fo% the public) an2 that althou5h the cont%act of

t%anspo%tation :as not b& lan2 o% :ate%:a&s as 2efine2 in sai2 A%t. ;() ne/e%theless) ai%

t%anspo%tation bein5 analo5ous to lan2 an2 :ate% t%anspo%tation) shoul2 be consi2e%e2 as

inclu2e2) especiall& in /ie: of the secon2 pa%a5%aph of A%t. ' of the sa3e Co2e :hichsa&s that t%ansactions co/e%e2 b& the Co2e of Co33e%ce an2 all othe%s of analo5ous

cha%acte% shall be 2ee3e2 acts of co33e%ce. The t%ial cou%t) ho:e/e%) 2isa5%ee2 to this

contention an2 opine2 that ai% t%anspo%tation not bein5 e


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ta=e an&one an&:he%e at an& ti3e) thou5h not ope%atin5 on %e5ula% %outes o% sche2ules)

an2 basin5 its cha%5es not on the nu3be% of passen5e%s) but on the ope%atin5 cost of the

plane pe% 3ile) has been hel2 to be a co33on ca%%ie%. 1t is not necessa%&) in o%2e% to 3a=e

one ca%%&in5 passen5e%s b& ai%c%aft a co33on ca%%ie% of passen5e%s that the passen5e%s

can be ca%%ie2 f%o3 one point to anothe% the status an2 the liabilit& as a co33on ca%%ie% 3a& e


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Septe3be%) *(;# fo% the %eason that the plans of Men2o4a to e


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an2 the obli5ation to ca%%& an2 to 2eli/e% an2 the %i5ht to p%o3pt 2eli/e%& 2isappea%.

Co33on ca%%ie%s a%e not obli5ate2 b& la: to ca%%& an2 to 2eli/e% 3e%chan2ise) an2

pe%sons a%e not /este2 :ith the %i5ht of p%o3pt 2eli/e%&) unless such co33on ca%%ie%s

p%e/iousl& assu3e the obli5ation. Sai2 %i5hts an2 obli5ations a%e c%eate2 b& a specific

cont%act ente%e2 into b& the pa%ties. 1n the p%esent case) the fin2in5s of the t%ial cou%t:hich as al%ea2& state2) a%e accepte2 b& the pa%ties an2 :hich :e 3ust accept a%e to the

effect that the L>N Pictu%es 1nc. an2 ,ose Men2o4a on one si2e) an2 the 2efen2ant

co3pan& on the othe%) ente%e2 into a cont%act of t%anspo%tation. p. '() Rec. on Appeal.

One inte%p%etation of sai2 fin2in5 is that the L>N Pictu%es 1nc. th%ou5h p%e/ious

a5%ee3ent :ith Men2o4a acte2 as the latte%s a5ent. Dhen he ne5otiate2 :ith the L>N

Pictu%es 1nc. to %ent the fil3 @0i3ala n5 Bi%hen@ an2 sho: it 2u%in5 the Na5a to:n fiesta)

he 3ost p%obabl& autho%i4e2 an2 en6oine2 the Pictu%e Co3pan& to ship the fil3 fo% hi3

on the PAL on Septe3be% *"th. Anothe% inte%p%etation is that e/en if the L>N Pictu%es

1nc. as consi5no% of its o:n initiati/e) an2 actin5 in2epen2entl& of Men2o4a fo% the ti3e

bein5) 3a2e Men2o4a as consi5nee) a st%an5e% to the cont%act if that is possible)ne/e%theless :hen he) Men2o4a) appea%e2 at the Pili Ai% Po%t a%3e2 :ith the cop& of the

Ai% Da& Bill Eol. 1) p. ;FF) citin5 a 2ecision of A%5entina Cou%t of Appeals on co33e%cial

3atte%s) cite2 b& Tolentino in >ol. 11 of his boo= entitle2 @Co33enta%ies an2

,u%isp%u2ence on the Co33e%cial La:s of the Philippines@ p. 'F() sa&s that the %i5ht of

the shippe% to counte%3an2 the ship3ent te%3inates :hen the consi5nee o% le5iti3atehol2e% of the bill of la2in5 appea%s :ith such bill of la2in5 befo%e the ca%%ie% an2 3a=es

hi3self a pa%t& to the cont%act. P%io% to that ti3e) he is st%an5e% to the cont%act.

Still anothe% /ie: of this phase of the case is that conte3plate2 in A%t. *'+") pa%a5%aph ')

of the ol2 Ci/il Co2e :hich %ea2s thus8

Shoul2 the cont%act contain an& stipulation in fa/o% of a thi%2 pe%son) he 3a& 2e3an2 its

fulfill3ent) p%o/i2e2 he has 5i/en notice of his acceptance to the pe%son boun2 befo%e the

stipulation has been %e/o=e2.

0e%e) the cont%act of ca%%ia5e bet:een the L>N Pictu%es 1nc. an2 the 2efen2ant ca%%ie%

contains the stipulations of the 2eli/e%& to Men2o4a as consi5nee. 0is 2e3an2 fo% the

2eli/e%& of the can of fil3 to hi3 at the Pili Ai% Po%t 3a& be %e5a%2e2 as a notice of his

acceptance of the stipulation of the 2eli/e%& in his fa/o% containe2 in the cont%act of

ca%%ia5e) such 2e3an2 bein5 one of the fulfill3ent of the cont%act of ca%%ia5e an2

2eli/e%&. 1n this case he also 3a2e hi3self a pa%t& to the cont%act) o% at least has co3e to

cou%t to enfo%ce it. 0is cause of action 3ust necessa%il& be foun2e2 on its b%each.


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One can %ea2il& s&3pathi4e :ith the appellant he%ein fo% his loss of p%ofits :hich he

e


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*. Ri4al Su%et& :as the insu%e% of #FF pac=a5es of P>C co3poun2 loa2e2 on the SS

o?a Nati at 7o=oha3a an2 consi5ne2 to the Ac3e Elect%ical Manufactu%in5 Co3pan&.@

'. @ The SS o?a Nati :as o:ne2 b& the National e/elop3ent Co3pan& :he%eas he

Ma%iti3e Co3pan& of the Philippines :as its A5ent. This appea%s in2ubitabl& in the Bill

of La2in5. E


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; not hol2in5 that Ri4al Su%et&s cause of action :as ba%%e2 b& p%esc%iption as :ell as

Stipulation No. *( of the Bill of La2in5.

The e/i2ence establishes that NC ha2 appointe2 petitione% Ma%iti3e Co.) as its a5ent to3ana5e an2 ope%ate th%ee /essels o:ne2 b& it) inclu2in5 the SS o?a Nati fo% an2 in its

behalf an2 account) an2 fo% a 2ete%3inable pe%io2 i.e.) until full %ei3bu%se3ent of all

3one&s a2/ance2 an2Io% full %elief f%o3 o% pa&3ent of all 5ua%antees 3a2e b& Ma%iti3e

Co. fo% account of the /essels. Un2e% thei% :%itten a5%ee3ent) Ma%iti3e Co. :as boun2

to @p%o/ision an2 /ictual@ the SS o?a Nati an2 the othe% t:o /essels) an2 to %en2e% a

co3plete %epo%t of the ope%ations of the /essels :ithin !F 2a&s afte% conclusion of each

/o&a5e it :as also autho%i4e2 to appoint sub-a5ents at an& po%ts o% places that it 3i5ht

2ee3 necessa%&) %e3ainin5 ho:e/e% %esponsible to the shipo:ne% NC fo% the ti3el&

an2 satisfacto%& pe%fo%3ance of sai2 sub-a5ents. These facts p%epon2e%antl& 2e3onst%ate

the cha%acte% of Ma%iti3e Co. as ship a5ent un2e% the Co2e of Co33e%ce) a ship a5ent)acco%2in5l& to that Co2e) bein5 @the pe%son ent%uste2 :ith p%o/isionin5 o% %ep%esentin5

the /essel in the po%t in :hich it 3a& be foun2.@ !

Ma%iti3e Co. ho:e/e% insists that it :as not the ship a5ent of NC in ,apan but @the $u6i

Asano Co.) Lt2.) :hich supplie2 he% :ith p%o/isions) an2 %ep%esente2 he% the%ein an2

:hich issue2 the bill of la2in5 fo% the o:ne% NC The clai3 is belie2 b& the bill of

la2in5 %efe%%e2 to. " The lette%hea2 of the bill of la2in5 is in t:o ' pa%ts) an2 is p%inte2

in the follo:in5 3anne%8

P01L1PP1NE NAT1ONAL L1NES

NAT1ONAL E>ELOPMENT COMPAN7

MAR1T1ME COMPAN7 O$ T0E P01L1PP1NES

AGENT

P01L1PP1NES-0ONGJONG) ,APAN) U.S. PAC1$1C

COAST-GUL$ PORTS

0ONGJONG-COSMOS E>ELOPMENT COMPAN7

K ,APAN-$U,1 ASANO JA1UN CO) LT.

K U.S.A-NORT0 AMER1CAN MAR1T1ME AGENC1ES

As :ill be obse%/e2) in :hat 3a& be 2esc%ibe2 as the 3ain lette%hea2) Ma%iti3e Co. is

in2icate2 as @A5ent@ fo% the * Philippines) ' @0on5=on5) ,apan) an2 the ; U.S.

Pacific Coast-Gulf Po%ts. Un2e%neath this 3ain lette%hea2 is a so%t of secon2a%& sub-hea28

@0on5=on5-Cos3os e/elop3ent Co3pan& ,apan-$u6i ASANO Jaiun Co.) Lt2.) U.SA-

No%th A3e%ican Ma%iti3e A5encies.@ The necessa%& connotation is that the fi%3s thus


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na3e2 a%e sub-a5ents o% secon2a%& %ep%esentati/es of Ma%iti3e Co.) $u6i ASANO Jaiun

Co.) Lt2.) pa%ticula%l&) bein5 the %ep%esentati/e of NC an2 Ma%iti3e Co. in ,apan) as

2istin5uishe2 f%o3 the Ma%iti3e Co.) :hich is 2esc%ibe2 as AGENT not onl& in ,apan but

also in othe% places8 the Philippines) 0on5=on5) U.S. Pacific Coast) an2 the Gulf Po%ts.

Mo%eo/e%) the bill sho:s on its face that it :as issue2 $OR T0E MASTER b&@Ma%iti3e Co3pan& of the Philippines) A5ent.@

E9uall& unacceptable is the contention that Ac3e Elect%ical Manufactu%in5) Manila)@ :as

not the consi5nee of the 5oo2s 2esc%ibe2 in the bill of la2in5 an2 the%efo%e) pa&3ent to it

fo% the loss of sai2 5oo2s 2i2 not ope%ate to 3a=e Ri4al Su%et& its sub%o5ee. The

contention is in the fi%st place belie2 b& the bill of la2in5 :hich states that if the 5oo2s

a%e @consi5ne2 to the Shippe%s O%2e%@-an2 the bill is so consi5ne28 @to the o%2e% of China

Ban=in5 Co%po%ation) Manila) o% assi5ns@-the @Ac3e Elect%ical Manufactu%in5) Manila)@

shall be notifie2. This sho:s) in the conteC co3poun2 :e%e shippe2 f%o3 7o=oha3a to Manila. 1t is also

2isap%o/e2 b& the fact that it :as Ac3e that insu%e2 the 5oo2s :ith Ri4al Su%et& an2 the

latte% 2i2 insu%e the3 ( on the st%en5th of the fo%3e%s Ma%ine Ris= Note) *F lon5 befo%e

the 5oo2s :e%e lost at sea) an2 it :as Ac3e) th%u its b%o=e%) that clai3e2 the p%ocee2s fo%

the loss. ** The contention is finall& 2isc%e2ite2 b& Ma%iti3e Co.s o:n ce%tification

:hich states that the @#FF pac=a5es of P>C Co3poun2 ... consi5ne2 to Ac3e Elect%ical

Manufactu%in5 :as ca%%ie2 a:a& to sea as a %esult of the acci2ent an2 sa3e :as

un%eco/e%e2 .. . *'

The%e is thus no 9uestion of the entitle3ent of Ac3e Elect%ical Manufactu%in5 to the

p%ocee2s of the insu%ance a5ainst loss of the 5oo2s in 9uestion) no% about the fact that it

2i2 %ecei/e such p%ocee2s f%o3 the Ri4al Su%et&) as insu%e%) :hich 3a2e pa&3ent upon

2ue asce%tain3ent of the actualit& of the loss. The le5al effect is inescapable. Ri4al Su%et&

:as sub%o5ate2 to Ac3es %i5hts a5ainst the shipo:ne% an2 the ship a5ent a%isin5 f%o3

the loss of the 5oo2s. *

No:) acco%2in5 to the Cou%t of Appeals) Ac3es %i5hts a%e to be 2ete%3ine2 b& the Ci/il

Co2e) not the Co2e of Co33e%ce. This conclusion 2e%i/es f%o3 A%ticle *"+ of the Ci/il

Co2e to the effect that it is the @la: of the count%& to :hich the 5oo2s a%e to be

t%anspo%te2 :hich shall 5o/e%n the liabilit& of the co33on ca%%ie% fo% thei% loss)

2est%uction o% 2ete%io%ation.@ 1t is onl& in @3atte%s not %e5ulate2 b& < < the Ci/il Co2e)@

acco%2in5 to A%ticle *"!!) that @the %i5hts an2 obli5ations of co33on ca%%ie%s shall be

5o/e%ne2 b& the Co2e of Co33e%ce an2 b& special la:s.@ Since the%e a%e in2ee2 specific

p%o/isions %e5ulatin5 the 3atte% of such liabilit& in the Ci/il Co2e) these bein5 e3bo2ie2


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in A%ticle *";) as :ell as p%esc%ibin5 the pe%io2 of p%esc%iption of actions) it follo:s that

the Co2e of Co33e%ce) o% the Ca%%ia5e of Goo2s b& Sea Act) has no %ele/anc& in the

2ete%3ination of the ca%%ie%s liabilit& in the instant case. 1n A3e%ican P%esi2ent Lines /.

Jleppe%) *; fo% instance) :e %ule2 that in /ie: of sai2 A%ticles *"+ an2 *"!!) the

p%o/isions of the Ca%%ia5e of Goo2s b& Sea Act a%e 3e%el& suppleto%& to the Ci/il Co2e.

Un2e% the establishe2 facts) an2 in acco%2ance :ith A%ticle *"; abo/e 3entione2)

petitione% Ma%iti3e Co. an2 NC) as @co33on ca%%ie%s)@ a%e liable to Ac3e fo% @the loss)

2est%uction o% 2ete%io%ation of the 5oo2s)@ an2 3a& be %elie/e2 of %esponsibilit& if the

loss) etc.) @is 2ue to an& of the follo:in5 causes onl&8 *+

*. $loo2) sto%3) ea%th9ua=es) li5htnin5 o% othe% natu%al 2isaste% o% cala3it&

'. Act of the public ene3& in :a%) :hethe% inte%national o% ci/il

. Act o% o3ission of the shippe% o% o:ne% of the 5oo2s

;. The cha%acte% of the 5oo2s o% 2efects in the pac=in5 o% in the containe%s

+. O%2e% o% act of co3petent public autho%it&.

Since none of the specifie2 absoluto%& causes is p%esent) the ca%%ie%s liabilit& is palpable.

The petitione%s othe% clai3 that the loss of the 5oo2s :as 2ue enti%el& to the fault of the

,apanese /essel)7asushi3a Ma%u) :hich %a33e2 into the o?a Nati cannot be sustaine2.

The Appellate T%ibunal foun2) as a fact) afte% a %e/ie: an2 stu2& of the e/i2ence) that the

o?a Nati @2i2 not e


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G.R. No. L-;"#'' ece3be% '') *(##

PERO E GUMAN) petitione%)

/s.

COURT O$ APPEALS an2 ERNESTO CENANA) %espon2ents.

>icente . Millo%a fo% petitione%.

,acinto Callanta fo% p%i/ate %espon2ent.

$EL1C1ANO) ,.8

Respon2ent E%nesto Cen2ana) a 6un= 2eale%) :as en5a5e2 in bu&in5 up use2 bottles an2

sc%ap 3etal in Pan5asinan. Upon 5athe%in5 sufficient 9uantities of such sc%ap 3ate%ial)

%espon2ent :oul2 b%in5 such 3ate%ial to Manila fo% %esale. 0e utili4e2 t:o ' si


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On *F ece3be% *("+) the t%ial cou%t %en2e%e2 a ecision * fin2in5 p%i/ate %espon2ent to

be a co33on ca%%ie% an2 hol2in5 hi3 liable fo% the /alue of the un2eli/e%e2 5oo2s P

'')*+F.FF as :ell as fo% P ;)FFF.FF as 2a3a5es an2 P ')FFF.FF as atto%ne&s fees.

On appeal befo%e the Cou%t of Appeals) %espon2ent u%5e2 that the t%ial cou%t ha2 e%%e2 in

consi2e%in5 hi3 a co33on ca%%ie% in fin2in5 that he ha2 habituall& offe%e2 t%uc=in5

se%/ices to the public in not e


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... e/e%& pe%son that no: o% he%eafte% 3a& o:n) ope%ate) 3ana5e) o% cont%ol in the

Philippines) fo% hi%e o% co3pensation) :ith 5ene%al o% li3ite2 clientele) :hethe%

pe%3anent) occasional o% acci2ental) an2 2one fo% 5ene%al business pu%poses) an&

co33on ca%%ie%) %ail%oa2) st%eet %ail:a&) t%action %ail:a&) sub:a& 3oto% /ehicle) eithe%

fo% f%ei5ht o% passen5e%) o% both) :ith o% :ithout fi


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in the ca%e of 5oo2s t%anspo%te2 b& a co33on ca%%ie% is) acco%2in5 to A%ticle *")

@fu%the% e


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As note2 ea%lie%) the 2ut& of e


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fo%tuitous e/ent. 1t is necessa%& to %ecall that e/en co33on ca%%ie%s a%e not 3a2e absolute

insu%e%s a5ainst all %is=s of t%a/el an2 of t%anspo%t of 5oo2s) an2 a%e not hel2 liable fo%

acts o% e/ents :hich cannot be fo%eseen o% a%e ine/itable) p%o/i2e2 that the& shall ha/e

co3plie2 :ith the %i5o%ous stan2a%2 of e1S1ON

G.R. No. *F*F#(. Ap%il ") *((.

ESTRELL1TA M. BASCOS) petitione%s)

/s.COURT O$ APPEALS an2 ROOL$O A. C1PR1ANO) %espon2ents.

Mo2esto S. Bascos fo% petitione%.

Pelae4) A2%iano H G%e5o%io fo% p%i/ate %espon2ent.

S7LLABUS

*. C1>1L LAD COMMON CARR1ERS E$1NE TEST TO ETERM1NE

COMMON CARR1ER. A%ticle *"' of the Ci/il Co2e 2efines a co33on ca%%ie% as

@a pe%son) co%po%ation o% fi%3) o% association en5a5e2 in the business of ca%%&in5 o%

t%anspo%tin5 passen5e%s o% 5oo2s o% both) b& lan2) :ate% o% ai%) fo% co3pensation) offe%in5thei% se%/ices to the public.@ The test to 2ete%3ine a co33on ca%%ie% is @:hethe% the 5i/en

un2e%ta=in5 is a pa%t of the business en5a5e2 in b& the ca%%ie% :hich he has hel2 out to

the 5ene%al public as his occupation %athe% than the 9uantit& o% e


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local i2io3) as a @si2eline@. A%ticle *"' also ca%efull& a/oi2s 3a=in5 an& 2istinction

bet:een a pe%son o% ente%p%ise offe%in5 t%anspo%tation se%/ice on a %e5ula% o% sche2ule2

basis an2 one offe%in5 such se%/ice on an occasional) episo2ic o% unsche2ule2 basis.

Neithe% 2oes A%ticle *"' 2istin5uishe2 bet:een a ca%%ie% offe%in5 its se%/ices to the

@5ene%al public)@ i.e.) the 5ene%al co33unit& o% population) an2 one :ho offe%s se%/iceso% solicits business onl& f%o3 a na%%o: se53ent of the 5ene%al population. De thin= that

A%ticle *"' 2elibe%atel& %ef%aine2 f%o3 3a=in5 such 2istinctions.@

'. 1. 1. 1L1GENCE REU1RE 1N >1G1LANCE O>ER GOOS

TRANSPORTE D0EN PRESUMPT1ON O$ NEGL1GENCE AR1SES 0OD

PRESUMPT1ON O>ERCAME D0EN PRESUMPT1ON MAE ABSOLUTE.

Co33on ca%%ie%s a%e obli5e2 to obse%/e e


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offe%in5 he% t%uc=s to those :ith ca%5o to 3o/e. ,u2icial a23issions a%e conclusi/e an2

no e/i2ence is %e9ui%e2 to p%o/e the sa3e.

+. 1. 1. BUREN O$ PROO$ RESTS D1T0 PART7 D0O ALLEGES A $ACT.

Petitione% p%esente2 no othe% p%oof of the e1TS NOT CONS1ERE BEST E>1ENCE 1$ A$$1ANTS

A>A1LABLE AS D1TNESSES. Dhile the affi2a/it of ,uanito Mo%2en) the t%uc=

helpe% in the hi6ac=e2 t%uc=) :as p%esente2 as e/i2ence in cou%t) he hi3self :as a :itness

as coul2 be 5leane2 f%o3 the contents of the petition. Affi2a/its a%e not consi2e%e2 the

best e/i2ence if the affiants a%e a/ailable as :itnesses.

". C1>1L LAD OBL1GAT1ONS AN CONTRACTS CONTRACT 1S D0AT LAD

E$1NES 1T TO BE. G%antin5 that the sai2 e/i2ence :e%e not self-se%/in5) the sa3e

:e%e not sufficient to p%o/e that the cont%act :as one of lease. 1t 3ust be un2e%stoo2 that

a cont%act is :hat the la: 2efines it to be an2 not :hat it is calle2 b& the cont%actin5 pa%ties.

E C 1 S 1 O N

CAMPOS) ,R.) , p8

This is a petition fo% %e/ie: on ce%tio%a%i of the 2ecision KK of the Cou%t of Appeals in

@ROOL$O A. C1PR1ANO) 2oin5 business un2e% the na3e C1PR1ANO TRA1NG

ENTERPR1SES plaintiff-appellee) /s. ESTRELL1TA M. BASCOS) 2oin5 business un2e%

the na3e of BASCOS TRUCJ1NG) 2efen2ant-appellant)@ C.A.-G.R. C> No. '+'*!) the

2ispositi/e po%tion of :hich is 9uote2 he%eun2e%8

@PREM1SES consi2e%e2) De fin2 no %e/e%sible e%%o% in the 2ecision appeale2 f%o3)

:hich is he%eb& affi%3e2 in toto. Costs a5ainst appellant.@ *

The facts) as 5athe%e2 b& this Cou%t) a%e as follo:s8

Ro2olfo A. Cip%iano %ep%esentin5 Cip%iano T%a2in5 Ente%p%ise C1PTRAE fo% sho%t

ente%e2 into a haulin5 cont%act ' :ith ,ibfai% Shippin5 A5enc& Co%po%ation :he%eb& the

fo%3e% boun2 itself to haul the latte%s ')FFF 3Itons of so&a bean 3eal f%o3 Ma5allanes

%i/e) el Pan) Manila to the :a%ehouse of Pu%efoo2s Co%po%ation in Cala3ba) La5una.

To ca%%& out its obli5ation) C1PTRAE) th%ou5h Ro2olfo Cip%iano) subcont%acte2 :ith

Est%ellita Bascos petitione% to t%anspo%t an2 to 2eli/e% ;FF sac=s of so&a bean 3eal:o%th P*+!);F;.FF f%o3 the Manila Po%t A%ea to Cala3ba) La5una at the %ate of P+F.FF

pe% 3et%ic ton. Petitione% faile2 to 2eli/e% the sai2 ca%5o. As a conse9uence of that failu%e)

Cip%iano pai2 ,ibfai% Shippin5 A5enc& the a3ount of the lost 5oo2s in acco%2ance :ith

the cont%act :hich state2 that8


20/120

@*. C1PTRAE shall be hel2 liable an2 ans:e%able fo% an& loss in ba5s 2ue to theft)

hi6ac=in5 an2 non-2eli/e%& o% 2a3a5es to the ca%5o 2u%in5 t%anspo%t at 3a%=et /alue) . . .@

Cip%iano 2e3an2e2 %ei3bu%se3ent f%o3 petitione% but the latte% %efuse2 to pa&.

E/entuall&) Cip%iano file2 a co3plaint fo% a su3 of 3one& an2 2a3a5es :ith :%it of

p%eli3ina%& attach3ent ; fo% b%each of a cont%act of ca%%ia5e. The p%a&e% fo% a D%it of

P%eli3ina%& Attach3ent :as suppo%te2 b& an affi2a/it + :hich containe2 the follo:in5

alle5ations8

@;. That this action is one of those specificall& 3entione2 in Sec. *) Rule +" the Rules of

Cou%t) :he%eb& a :%it of p%eli3ina%& attach3ent 3a& la:full& issue) na3el&8

@e in an action a5ainst a pa%t& :ho has %e3o/e2 o% 2ispose2 of his p%ope%t&) o% is about

to 2o so) :ith intent to 2ef%au2 his c%e2ito%s@

+. That the%e is no sufficient secu%it& fo% the clai3 sou5ht to be enfo%ce2 b& the p%esentaction

!. That the a3ount 2ue to the plaintiff in the abo/e-entitle2 case is abo/e all le5al

counte%clai3s@

The t%ial cou%t 5%ante2 the :%it of p%eli3ina%& attach3ent on $eb%ua%& *") *(#".

1n he% ans:e%) petitione% inte%pose2 the follo:in5 2efenses8 that the%e :as no cont%act of

ca%%ia5e since C1PTRAE lease2 he% ca%5o t%uc= to loa2 the ca%5o f%o3 Manila Po%t A%ea

to La5una that C1PTRAE :as liable to petitione% in the a3ount of P**)FFF.FF fo%

loa2in5 the ca%5o that the t%uc= ca%%&in5 the ca%5o :as hi6ac=e2 alon5 Canoni5o St.)

Paco) Manila on the ni5ht of Octobe% '*) *(## that the hi6ac=in5 :as i33e2iatel&%epo%te2 to C1PTRAE an2 that petitione% an2 the police eE T0OUSAN PESOS P+)FFF.FF as an2 fo% atto%ne&s fees an2

. The costs of the suit.


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The @U%5ent Motion To issol/eILift p%eli3ina%& Attach3ent@ 2ate2 Ma%ch *F) *(#"

file2 b& 2efen2ant is EN1E fo% bein5 3oot an2 aca2e3ic.

SO ORERE.@ !

Petitione% appeale2 to the Cou%t of Appeals but %espon2ent Cou%t affi%3e2 the t%ial cou%ts 6u253ent.

Conse9uentl&) petitione% file2 this petition :he%e she 3a=es the follo:in5 assi5n3ent of

e%%o%s to :it8

@1. T0E RESPONENT COURT ERRE 1N 0OL1NG T0AT T0E CONTRACTUAL

RELAT1ONS01P BETDEEN PET1T1ONER AN PR1>ATE RESPONENT DAS

CARR1AGE O$ GOOS AN NOT LEASE O$ CARGO TRUCJ.

11. GRANT1NG) E GRAT1A ARGUMENT1) T0AT T0E $1N1NG O$ T0E

RESPONENT COURT T0AT T0E CONTRACTUAL RELAT1ONS01P BETDEEN

PET1T1ONER AN PR1>ATE RESPONENT DAS CARR1AGE O$ GOOS 1S

CORRECT) NE>ERT0ELESS) 1T ERRE 1N $1N1NG PET1T1ONER L1ABLE

T0EREUNER BECAUSE T0E LOSS O$ T0E CARGO DAS UE TO $ORCE

MA,EURE) NAMEL7) 01,ACJ1NG.

111. T0E RESPONENT COURT ERRE 1N A$$1RM1NG T0E $1N1NG O$ T0E

TR1AL COURT T0AT PET1T1ONERS MOT1ON TO 1SSOL>EIL1$T T0E DR1T O$

PREL1M1NAR7 ATTAC0MENT 0AS BEEN RENERE MOOT AN ACAEM1C

B7 T0E EC1S1ON O$ T0E MER1TS O$ T0E CASE.@ "

The petition p%esents the follo:in5 issues fo% %esolution8 * :as petitione% a co33on

ca%%ie% an2 ' :as the hi6ac=in5 %efe%%e2 to a fo%ce 3a6eu%e

The Cou%t of Appeals) in hol2in5 that petitione% :as a co33on ca%%ie%) foun2 that she

a23itte2 in he% ans:e% that she 2i2 business un2e% the na3e A.M. Bascos T%uc=in5 an2

that sai2 a23ission 2ispense2 :ith the p%esentation b& p%i/ate %espon2ent) Ro2olfo

Cip%iano) of p%oofs that petitione% :as a co33on ca%%ie%. The %espon2ent Cou%t also

a2opte2 in toto the t%ial cou%ts 2ecision that petitione% :as a co33on ca%%ie%) Mo%eo/e%)

both cou%ts app%eciate2 the follo:in5 pieces of e/i2ence as in2icato%s that petitione% :as

a co33on ca%%ie%8 the fact that the t%uc= 2%i/e% of petitione%) Ma


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testi3on& his state3ent that the cont%act :as a lease cont%act. *F She also state2 that8 she

:as not cate%in5 to the 5ene%al public. Thus) in he% ans:e% to the a3en2e2 co3plaint) she

sai2 that she 2oes business un2e% the sa3e st&le of A.M. Bascos T%uc=in5) offe%in5 he%

t%uc=s fo% lease to those :ho ha/e ca%5o to 3o/e) not to the 5ene%al public but to a fe:

custo3e%s onl& in /ie: of the fact that it is onl& a s3all business. **

De a5%ee :ith the %espon2ent Cou%t in its fin2in5 that petitione% is a co33on ca%%ie%.

A%ticle *"' of the Ci/il Co2e 2efines a co33on ca%%ie% as @a pe%son) co%po%ation o%

fi%3) o% association en5a5e2 in the business of ca%%&in5 o% t%anspo%tin5 passen5e%s o%

5oo2s o% both) b& lan2) :ate% o% ai%) fo% co3pensation) offe%in5 thei% se%/ices to the

public.@ The test to 2ete%3ine a co33on ca%%ie% is @:hethe% the 5i/en un2e%ta=in5 is a

pa%t of the business en5a5e2 in b& the ca%%ie% :hich he has hel2 out to the 5ene%al public

as his occupation %athe% than the 9uantit& o% e


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Li=e:ise) De affi%3 the hol2in5 of the %espon2ent cou%t that the loss of the 5oo2s :as

not 2ue to fo%ce 3a6eu%e.

Co33on ca%%ie%s a%e obli5e2 to obse%/e e


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conclusion of the appellate cou%t. 1n a petition fo% %e/ie: on ce%tio%a%i) De a%e not to

2ete%3ine the p%obati/e /alue of e/i2ence but to %esol/e 9uestions of la:. Secon2l&) the

affi2a/it of ,esus Bascos 2i2 not 2:ell on ho: the hi6ac=in5 too= place. Thi%2l&) :hile

the affi2a/it of ,uanito Mo%2en) the t%uc= helpe% in the hi6ac=e2 t%uc=) :as p%esente2 as

e/i2ence in cou%t) he hi3self :as a :itness as coul2 be 5leane2 f%o3 the contents of the petition. Affi2a/its a%e not consi2e%e2 the best e/i2ence if the affiants a%e a/ailable as

:itnesses. '+ The subse9uent filin5 of the info%3ation fo% ca%nappin5 an2 %obbe%& a5ainst

the accuse2 na3e2 in sai2 affi2a/its 2i2 not necessa%il& 3ean that the contents of the

affi2a/its :e%e t%ue because the& :e%e &et to be 2ete%3ine2 in the t%ial of the c%i3inal

cases.

The p%esu3ption of ne5li5ence :as %aise2 a5ainst petitione%. 1t :as petitione%s bu%2en to

o/e%co3e it. Thus) cont%a%& to he% asse%tion) p%i/ate %espon2ent nee2 not int%o2uce an&

e/i2ence to p%o/e he% ne5li5ence. 0e% o:n failu%e to a22uce sufficient p%oof of

e1S1ON

G.R. No. *'+(;#. ece3be% '() *((#Q

$1RST P01L1PP1NE 1NUSTR1AL CORPORAT1ON) petitione%) /s. COURT O$

APPEALS) 0ONORABLE PATERNO >. TAC-AN) BATANGAS C1T7 an2

AORAC1ON C. ARELLANO) in he% official capacit& as Cit& T%easu%e% of Batan5as) %espon2ents.

E C 1 S 1 O N

MART1NE) ,.8


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This petition fo% %e/ie: on ce%tio%a%i assails the ecision of the Cou%t of Appeals

2ate2 No/e3be% '() *((+) in CA-G.R. SP No. !#F*) affi%3in5 the 2ecision of the

Re5ional T%ial Cou%t of Batan5as Cit&) B%anch #;) in Ci/il Case No. ;'() :hich

2is3isse2 petitione%s co3plaint fo% a business ta< %efun2 i3pose2 b& the Cit& of

Batan5as.

Petitione% is a 5%antee of a pipeline concession un2e% Republic Act No. #") as

a3en2e2) to cont%act) install an2 ope%ate oil pipelines. The o%i5inal pipeline concession

:as 5%ante2 in *(!"*Qﾧ an2 %ene:e2 b& the Ene%5& Re5ulato%& Boa%2 in *(('.'Qﾧ

So3eti3e in ,anua%& *((+) petitione% applie2 fo% a 3a&o%s pe%3it :ith the Office of

the Ma&o% of Batan5as Cit&. 0o:e/e%) befo%e the 3a&o%s pe%3it coul2 be issue2) the

%espon2ent Cit& T%easu%e% %e9ui%e2 petitione% to pa& a local ta< base2 on its 5%oss %eceipts

fo% the fiscal &ea% *(( pu%suant to the Local Go/e%n3ent Co2e.Qﾧ The %espon2ent Cit&

T%easu%e% assesse2 a business ta< on the petitione% a3ountin5 to P(+!)F"!.F; pa&able in

fou% install3ents base2 on the 5%oss %eceipts fo% p%o2ucts pu3pe2 at GPS-* fo% the fiscal&ea% *(( :hich a3ounte2 toP*#*)!#*)*+*.FF. 1n o%2e% not to ha3pe% its ope%ations)

petitione% pai2 the ta< un2e% p%otest in the a3ount of P'()F*(.F* fo% the fi%st 9ua%te% of

*((.

On ,anua%& 'F) *((;) petitione% file2 a lette%-p%otest a22%esse2 to the %espon2ent Cit&

T%easu%e%) the pe%tinent po%tion of :hich %ea2s8

@Please note that ou% Co3pan& $P1C is a pipeline ope%ato% :ith a 5o/e%n3ent

concession 5%ante2 un2e% the Pet%oleu3 Act. 1t is en5a5e2 in the business of t%anspo%tin5

pet%oleu3 p%o2ucts f%o3 the Batan5as %efine%ies) /ia pipeline) to Sucat an2 ,T$ Pan2acan

Te%3inals. As such) ou% Co3pan& is e


26/120

On Ma%ch #) *((;) the %espon2ent Cit& T%easu%e% 2enie2 the p%otest conten2in5 that

petitione% cannot be consi2e%e2 en5a5e2 in t%anspo%tation business) thus it cannot clai3

e


27/120

co33ute%s :ith ta


28/120

. 0e 3ust un2e%ta=e to ca%%& b& the 3etho2 b& :hich his business is con2ucte2

an2 o/e% his establishe2 %oa2s an2

;. The t%anspo%tation 3ust be fo% hi%e.*+Qﾧ

Base2 on the abo/e 2efinitions an2 %e9ui%e3ents) the%e is no 2oubt that petitione% is aco33on ca%%ie%. 1t is en5a5e2 in the business of t%anspo%tin5 o% ca%%&in5 5oo2s) i.e.

pet%oleu3 p%o2ucts) fo% hi%e as a public e3plo&3ent. 1t un2e%ta=es to ca%%& fo% all pe%sons

in2iffe%entl&) that is) to all pe%sons :ho choose to e3plo& its se%/ices) an2 t%anspo%ts the

5oo2s b& lan2 an2 fo% co3pensation. The fact that petitione% has a li3ite2 clientele 2oes

not e


29/120

Also) %espon2ents a%5u3ent that the te%3 @co33on ca%%ie%@ as use2 in Section *

6 of the Local Go/e%n3ent Co2e %efe%s onl& to co33on ca%%ie%s t%anspo%tin5 5oo2s an2

passen5e%s th%ou5h 3o/in5 /ehicles o% /essels eithe% b& lan2) sea o% :ate%) is e%%oneous.

As co%%ectl& pointe2 out b& petitione%) the 2efinition of @co33on ca%%ie%s@ in the

Ci/il Co2e 3a=es no 2istinction as to the 3eans of t%anspo%tin5) as lon5 as it is b& lan2)

:ate% o% ai%. 1t 2oes not p%o/i2e that the t%anspo%tation of the passen5e%s o% 5oo2s shoul2

be b& 3oto% /ehicle.1n fact) in the Unite2 States) oil pipe line ope%ato%s a%e consi2e%e2

co33on ca%%ie%s.*"Qﾧ

Un2e% the Pet%oleu3 Act of the Philippines Republic Act #") petitione% is

consi2e%e2 a @co33on ca%%ie%.@ Thus) A%ticle #! the%eof p%o/i2es that8

@A%t. #!. Pipe line concessionai%e as a co33on ca%%ie%. - A pipe line shall ha/e the

p%efe%ential %i5ht to utili4e installations fo% the t%anspo%tation of pet%oleu3 o:ne2 b& hi3)

but is obli5ate2 to utili4e the %e3ainin5 t%anspo%tation capacit& p%o %ata fo% the

t%anspo%tation of such othe% pet%oleu3 as 3a& be offe%e2 b& othe%s fo% t%anspo%t) an2 tocha%5e :ithout 2isc%i3ination such %ates as 3a& ha/e been app%o/e2 b& the Sec%eta%& of

A5%icultu%e an2 Natu%al Resou%ces.@

Republic Act #" also %e5a%2s pet%oleu3 ope%ation as a public utilit&. Pe%tinent

po%tion of A%ticle " the%eof p%o/i2es8

@that e/e%&thin5 %elatin5 to the e


30/120

The 2elibe%ations con2ucte2 in the 0ouse of Rep%esentati/es on the Local

Go/e%n3ent Co2e of *((* a%e illu3inatin58

@MR. AU1NO A. Than= &ou) M%. Spea=e%.

M%. Spea=e%) :e :oul2 li=e to p%ocee2 to pa5e (+) line *. 1t states 8 @SEC.*'* no: Sec.**Q. Co33on Li3itations on the Ta


31/120

Bellosillo) Chai%3an) Puno) an2 Men2o4a) ,,.) concu%.

SECON 1>1S1ON

G.R. No. *;#;(!. Ma%ch *() 'FF'Q

>1RG1NES CAL>O 2oin5 business un2e% the na3e an2 st&le TRANSOR1ENT

CONTA1NER TERM1NAL SER>1CES) 1NC.) petitione%) /s. UCPB GENERAL

1NSURANCE CO.) 1NC. fo%3e%l& Allie2 Gua%antee 1ns. Co.) 1nc. %espon2ent.

E C 1 S 1 O N

MENOA) ,.8

This is a petition fo% %e/ie: of the 2ecision)*Qﾧ 2ate2 Ma& *) 'FF*) of the Cou%t of

Appeals) affi%3in5 the 2ecision'Qﾧ of the Re5ional T%ial Cou%t) Ma=ati Cit&) B%anch *;#)

:hich o%2e%e2 petitione% to pa& %espon2ent) as sub%o5ee) the a3ount of P()**'.FF :ith

le5al inte%est) %ep%esentin5 the /alue of 2a3a5e2 ca%5o han2le2 b& petitione%) '+ the%eof

as atto%ne&s fees) an2 the cost of the suit.

The facts a%e as follo:s8

Petitione% >i%5ines Cal/o is the o:ne% of T%anso%ient Containe% Te%3inal Se%/ices)

1nc. TCTS1) a sole p%op%ieto%ship custo3s b%o=e%. At the ti3e 3ate%ial to this case)

petitione% ente%e2 into a cont%act :ith San Mi5uel Co%po%ation SMC fo% the t%ansfe% of

**; %eels of se3i-che3ical flutin5 pape% an2 *'; %eels of =%aft line% boa%2 f%o3 the Po%t

A%ea in Manila to SMCs :a%ehouse at the Tabacale%a Co3poun2) Ro3ual2e4 St.) E%3ita)

Manila. The ca%5o :as insu%e2 b& %espon2ent UCPB Gene%al 1nsu%ance Co.) 1nc.

On ,ul& *;) *((F) the ship3ent in 9uestion) containe2 in F 3etal /ans) a%%i/e2 in

Manila on boa%2 MI> 0a&a=a:a Ma%u an2) afte% '; hou%s) :e%e unloa2e2 f%o3 the

/essel to the custo2& of the a%%ast%e ope%ato%) Manila Po%t Se%/ices) 1nc. $%o3 ,ul& ' to,ul& '+) *((F) petitione%) pu%suant to he% cont%act :ith SMC) :ith2%e: the ca%5o f%o3 the

a%%ast%e ope%ato% an2 2eli/e%e2 it to SMCs :a%ehouse in E%3ita) Manila. On ,ul& '+)

*((F) the 5oo2s :e%e inspecte2 b& Ma%ine Ca%5o Su%/e&o%s) :ho foun2 that *+ %eels of

the se3i-che3ical flutin5 pape% :e%e :etIstaine2Ito%n an2 %eels of =%aft line% boa%2

:e%e li=e:ise to%n. The 2a3a5e :as place2 at P()**'.FF.

http://sc.judiciary.gov.ph/jurisprudence/2002/mar2002/148496.htm#_edn1http://sc.judiciary.gov.ph/jurisprudence/2002/mar2002/148496.htm#_edn2http://sc.judiciary.gov.ph/jurisprudence/2002/mar2002/148496.htm#_edn1http://sc.judiciary.gov.ph/jurisprudence/2002/mar2002/148496.htm#_edn2


32/120

SMC collecte2 pa&3ent f%o3 %espon2ent UCPB un2e% its insu%ance cont%act fo% the

afo%e3entione2 a3ount. 1n tu%n) %espon2ent) as sub%o5ee of SMC) b%ou5ht suit a5ainst

petitione% in the Re5ional T%ial Cou%t) B%anch *;#) Ma=ati Cit&) :hich) on ece3be% 'F)

*((+) %en2e%e2 6u253ent fin2in5 petitione% liable to %espon2ent fo% the 2a3a5e to the

ship3ent.

The t%ial cou%t hel28

1t cannot be 2enie2 . . . that the sub6ect ca%5oes sustaine2 2a3a5e :hile in the custo2& of

2efen2ants. E/i2ence such as the Da%ehouse Ent%& Slip E


33/120

efen2ant) bein5 a custo3s b%othe%) :a%ehouse3an an2 at the sa3e ti3e a co33on

ca%%ie% is suppose2 toQ e


34/120

A%ticle *"'. Co33on ca%%ie%s a%e pe%sons) co%po%ations) fi%3s o% associations en5a5e2

in the business of ca%%&in5 o% t%anspo%tin5 passen5e%s o% 5oo2s o% both) b& lan2) :ate%) o%

ai% fo% co3pensation) offe%in5 thei% se%/ices to the public.

The abo/e a%ticle 3a=es no 2istinction bet:een one :hose p%incipal business acti/it& is

the ca%%&in5 of pe%sons o% 5oo2s o% both) an2 one :ho 2oes such ca%%&in5 onl& as an

ancilla%& acti/it& . . . A%ticle *"' also ca%efull& a/oi2s 3a=in5 an& 2istinction bet:een a

pe%son o% ente%p%ise offe%in5 t%anspo%tation se%/ice on a %e5ula% o% sche2ule2 basis an2

one offe%in5 such se%/ice on an occasional) episo2ic o% unsche2ule2 basis. Neithe% 2oes

A%ticle *"' 2istin5uish bet:een a ca%%ie% offe%in5 its se%/ices to the 5ene%al public) i.e.)

the 5ene%al co33unit& o% population) an2 one :ho offe%s se%/ices o% solicits business

onl& f%o3 a na%%o: se53ent of the 5ene%al population. De thin= that A%ticle *"'

2elibe%atel& %ef%aine2 f%o3 3a=in5 such 2istinctions.

So un2e%stoo2) the concept of co33on ca%%ie% un2e% A%ticle *"' 3a& be seen to

coinci2e neatl& :ith the notion of public se%/ice) un2e% the Public Se%/ice ActCo33on:ealth Act No. *;*!) as a3en2e2 :hich at least pa%tiall& supple3ents the la:

on co33on ca%%ie%s set fo%th in the Ci/il Co2e. Un2e% Section *) pa%a5%aph b of the

Public Se%/ice Act) public se%/ice inclu2es8

< < < e/e%& pe%son that no: o% he%eafte% 3a& o:n) ope%ate) 3ana5e) o% cont%ol in the

Philippines) fo% hi%e o% co3pensation) :ith 5ene%al o% li3ite2 clientele) :hethe%

pe%3anent) occasional o% acci2ental) an2 2one fo% 5ene%al business pu%poses) an&

co33on ca%%ie%) %ail%oa2) st%eet %ail:a&) t%action %ail:a&) sub:a& 3oto% /ehicle) eithe%

fo% f%ei5ht o% passen5e%) o% both) :ith o% :ithout fi


35/120

1n Co3pania Ma%iti3a /. Cou%t of Appeals)(Q ﾧ the 3eanin5 of e


36/120

Ship3ent) p%o/i2e2 :ith ou% p%otecti/e supe%/ision :as note2 2ischa%5e2 e< /essel to

2oc= of Pie% * South 0a%bo%) Manila on *; ,ul& *((F) containe%i4e2 onto F < 'F

secu%e 3etal /ans) co/e%e2 b& clean E1Rs. E


37/120

Co33on ca%%ie%s a%e %esponsible fo% the loss) 2est%uction) o% 2ete%io%ation of the 5oo2s)

unless the sa3e is 2ue to an& of the follo:in5 causes onl&8

. . . .

; The cha%acte% of the 5oo2s o% 2efects in the pac=in5 o% in the containe%s.

. . . .

$o% this p%o/ision to appl&) the %ule is that if the i3p%ope% pac=in5 o%) in this case) the

2efectIs in the containe%) isIa%e =no:n to the ca%%ie% o% his e3plo&ees o% appa%ent upon

o%2ina%& obse%/ation) but he ne/e%theless accepts the sa3e :ithout p%otest o% e


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Co3pan& fo% 'F')+F+) a%%i/e2 in Manila on Ma%ch ") *(! an2 :as 2ischa%5e2 into the

li5hte%s of Lu4on Ste/e2o%in5 Co3pan&. Dhen the ca%5o :as 2eli/e%e2 to consi5nee San

Mi5uel B%e:e%& 1nc.) the%e :e%e sho%ta5es a3ountin5 to P*')F.#+) causin5 the latte% to

la& clai3s a5ainst Lu4on Ste/e2o%in5 Co%po%ation) 0o3e 1nsu%ance Co3pan& an2 the

A3e%ican Stea3ship A5encies) o:ne% an2 ope%ato% of SS C%o:bo%ou5h.

Because the othe%s 2enie2 liabilit&) 0o3e 1nsu%ance Co3pan& pai2 the consi5nee

P*;)#"F."* the insu%ance /alue of the loss) as full settle3ent of the clai3. 0a/in5

been %efuse2 %ei3bu%se3ent b& both the Lu4on Ste/e2o%in5 Co%po%ation an2 A3e%ican

Stea3ship A5encies) 0o3e 1nsu%ance Co3pan&) as sub%o5ee to the consi5nee) file2

a5ainst the3 on Ma%ch !) *(!; befo%e the Cou%t of $i%st 1nstance of Manila a co3plaint

fo% %eco/e%& of P*;)#"F."* :ith le5al inte%est) plus atto%ne&s fees.

1n ans:e%) Lu4on Ste/e2o%in5 Co%po%ation alle5e2 that it 2eli/e%e2 :ith 2ue 2ili5ence the

5oo2s in the sa3e 9uantit& an2 9ualit& that it ha2 %ecei/e2 the sa3e f%o3 the ca%%ie%. 1t

also clai3e2 that plaintiffs clai3 ha2 p%esc%ibe2 un2e% A%ticle !! of the Co2e of Co33e%ce statin5 that the clai3 3ust be 3a2e :ithin '; hou%s f%o3 %eceipt of the ca%5o.

A3e%ican Stea3ship A5encies 2enie2 liabilit& b& alle5in5 that un2e% the p%o/isions of the

Cha%te% pa%t& %efe%%e2 to in the bills of la2in5) the cha%te%e%) not the shipo:ne%) :as

%esponsible fo% an& loss o% 2a3a5e of the ca%5o. $u%the%3o%e) it clai3e2 to ha/e

e


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isa5%eein5 :ith such 6u253ent) A3e%ican Stea3ship A5encies appeale2 2i%ectl& to Us.

The appeal b%in5s fo%th fo% 2ete%3ination this le5al issue8 1s the stipulation in the cha%te%

pa%t& of the o:ne%s non-liabilit& /ali2 so as to absol/e the A3e%ican Stea3ship A5encies

f%o3 liabilit& fo% loss

The bills of la2in5)* co/e%in5 the ship3ent of Pe%u/ian fish 3eal p%o/i2e at the bac=

the%eof that the bills of la2in5 shall be 5o/e%ne2 b& an2 sub6ect to the te%3s an2

con2itions of the cha%te% pa%t&) if an&) othe%:ise) the bills of la2in5 p%e/ail o/e% all the

a5%ee3ents.' On the of the bills a%e sta3pe2 @$%ei5ht p%epai2 as pe% cha%te% pa%t&. Sub6ect

to all te%3s) con2itions an2 e


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stipulation in the cha%te% pa%t& absol/in5 the o:ne% f%o3 liabilit& fo% loss 2ue to the

ne5li5ence of its a5ent :oul2 be /oi2 onl& if the st%ict public polic& 5o/e%nin5 co33on

ca%%ie%s is applie2. Such polic& has no fo%ce :he%e the public at la%5e is not in/ol/e2) as

in the case of a ship totall& cha%te%e2 fo% the use of a sin5le pa%t&.

An2 fu%the%3o%e) in a cha%te% of the enti%e /essel) the bill of la2in5 issue2 b& the 3aste%

to the cha%te%e%) as shippe%) is in fact an2 le5al conte3plation 3e%el& a %eceipt an2 a

2ocu3ent of title not a cont%act) fo% the cont%act is the cha%te% pa%t&.*F The consi5nee

3a& not clai3 i5no%ance of sai2 cha%te% pa%t& because the bills of la2in5 e1S1ON

G.R. No. *F'*!. ,une F) *(("Q

>ALENUELA 0ARDOO AN 1NUSTR1AL SUPPL7) 1NC.) petitione%) /s.

COURT O$ APPEALS AN SE>EN BROT0ERS S01PP1NG CORPORAT1ON)

%espon2ents.

E C 1 S 1 O N

PANGAN1BAN) ,.8

1s a stipulation in a cha%te% pa%t& that the o:ne%s shall not be %esponsible fo% loss)

split) sho%t-lan2in5) b%ea=a5es an2 an& =in2 of 2a3a5es to the ca%5o*Qﾧ /ali2 This is

the 3ain 9uestion %aise2 in this petition fo% %e/ie: assailin5 the ecision of Respon2ent

Cou%t of Appeals'Qﾧ in CA-G.R. No. C>-'F*+! p%o3ul5ate2 on Octobe% *+) *((*. The

Cou%t of Appeals 3o2ifie2 the 6u253ent of the Re5ional T%ial Cou%t of >alen4uela) Met%o

Manila) B%anch *"*) the 2ispositi/e po%tion of :hich %ea2s8

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D0ERE$ORE) ,u253ent is he%eb& %en2e%e2 o%2e%in5 South Sea Su%et& an2 1nsu%ance

Co.) 1nc. to pa& plaintiff the su3 of TDO M1LL1ON PESOS P')FFF)FFF.FF

%ep%esentin5 the /alue of the polic& of the lost lo5s :ith le5al inte%est the%eon f%o3 the

2ate of 2e3an2 on $eb%ua%& ') *(#; until the a3ount is full& pai2 o% in the alte%nati/e)

2efen2ant Se/en B%othe%s Shippin5 Co%po%ation to pa& plaintiff the a3ount of TDOM1LL1ON PESOS P')FFF)FFF.FF %ep%esentin5 the /alue of lost lo5s plus le5al inte%est

f%o3 the 2ate of 2e3an2 on Ap%il ';) *(#; until full pa&3ent the%eof the %easonable

atto%ne&s fees in the a3ount e9ui/alent to fi/e + pe%cent of the a3ount of the clai3 an2

the costs of the suit.

Plaintiff is he%eb& o%2e%e2 to pa& 2efen2ant Se/en B%othe%s Shippin5 Co%po%ation the

su3 of TDO 0UNRE T01RT7 T0OUSAN PESOS P'F)FFF.FF %ep%esentin5 the

balance of the stipulate2 f%ei5ht cha%5es.

efen2ant South Sea Su%et& an2 1nsu%ance Co3pan&s counte%clai3 is he%eb& 2is3isse2.

1n its assaile2 ecision) Respon2ent Cou%t of Appeals hel28

D0ERE$ORE) the appeale2 6u253ent is he%eb& A$$1RME eERSE an2 SET AS1E.Qﾧ

The $acts

The factual antece2ents of this case as na%%ate2 in the Cou%t of Appeals ecision a%e

as follo:s8

1t appea%s that on *! ,anua%& *(#;) plaintiff >alen4uela 0a%2:oo2 an2 1n2ust%ial Suppl&)

1nc. ente%e2 into an a5%ee3ent :ith the 2efen2ant Se/en B%othe%s Shippin5

Co%po%ation :he%eb& the latte% un2e%too= to loa2 on boa%2 its /essel MI> Se/en

A3bassa2o% the fo%3e%s lauan %oun2 lo5s nu3be%in5 (;F at the po%t of Maconacon)

1sabela fo% ship3ent to Manila.

On 'F ,anua%& *(#;) plaintiff insu%e2 the lo5s a5ainst loss an2Io% 2a3a5e :ith 2efen2ant

South Sea Su%et& an2 1nsu%ance Co.) 1nc. fo% P')FFF)FFF.FF an2 the latte% issue2 its

Ma%ine Ca%5o 1nsu%ance Polic& No. #;I';''( fo% P')FFF)FFF.FF on sai2 2ate.

On '; ,anua%& *(#;) the plaintiff 5a/e the chec= in pa&3ent of the p%e3iu3 on theinsu%ance polic& to M%. >icto%io Chua.

1n the 3eanti3e) the sai2 /essel MI> Se/en A3bassa2o% san= on '+ ,anua%& *(#;

%esultin5 in the loss of the plaintiffs insu%e2 lo5s.

On F ,anua%& *(#;) a chec= fo% P+)!'+.FF E


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accepte2. 1nstea2) the South Sea Su%et& an2 1nsu%ance Co.) 1nc. cancelle2 the insu%ance

polic& it issue2 as of the 2ate of the inception fo% non-pa&3ent of the p%e3iu3 2ue in

acco%2ance :ith Section "" of the 1nsu%ance Co2e.

On ' $eb%ua%& *(#;) plaintiff 2e3an2e2 f%o3 2efen2ant South Sea Su%et& an2 1nsu%ance

Co.) 1nc. the pa&3ent of the p%ocee2s of the polic& but the latte% 2enie2 liabilit& un2e% the

polic&. Plaintiff li=e:ise file2 a fo%3al clai3 :ith 2efen2ant Se/en B%othe%s Shippin5

Co%po%ation fo% the /alue of the lost lo5s but the latte% 2enie2 the clai3.

Afte% 2ue hea%in5 an2 t%ial) the cou%t a 9uo %en2e%e2 6u253ent in fa/o% of plaintiff an2

a5ainst 2efen2ants. Both 2efen2ants shippin5 co%po%ation an2 the su%et& co3pan&

appeale2.

efen2ant-appellant Se/en B%othe%s Shippin5 Co%po%ation i3pute sic to the cou%t a 9uo

the follo:in5 assi5n3ent of e%%o%s) to :it8

A. The lo:e% cou%t e%%e2 in hol2in5 that the p%o


43/120

B. The t%ial cou%t e%%e2 in hol2in5 that >icto%io Chua %ecei/e2 co3pensationIco33ission

on the p%e3iu3s pai2 on the policies issue2 b& the 2efen2ant-appellant South Sea Su%et&

an2 1nsu%ance Co3pan&) 1nc.

C. The t%ial cou%t e%%e2 in not appl&in5 Section "" of the 1nsu%ance Co2e.

. The t%ial cou%t e%%e2 in 2is%e5a%2in5 the %eceipt of pa&3ent clause attache2 to an2

fo%3in5 pa%t of the Ma%ine Ca%5o 1nsu%ance Polic& No. #;I';''(.

E. The t%ial cou%t in 2is%e5a%2in5 the state3ent of account o% bill statin5 the a3ount of

p%e3iu3 an2 2ocu3enta%& sta3ps to be pai2 on the polic& b& the plaintiff-appellee.

$. The t%ial cou%t e%%e2 in 2is%e5a%2in5 the in2o%se3ent of cancellation of the polic& 2ue

to non-pa&3ent of p%e3iu3 an2 2ocu3enta%& sta3ps.

G. The t%ial cou%t e%%e2 in o%2e%in5 2efen2ant-appellant South Sea Su%et& an2 1nsu%ance

Co3pan&) 1nc. to pa& plaintiff-appellee P')FFF)FFF.FF %ep%esentin5 /alue of the polic&

:ith le5al inte%est f%o3 ' $eb%ua%& *(#; until the a3ount is full& pai2)

0. The t%ial cou%t e%%e2 in not a:a%2in5 to the 2efen2ant-appellant the atto%ne&s fees

alle5e2 an2 p%o/en in its counte%clai3.

The p%i3a%& issue to be %esol/e2 befo%e us is :hethe% 2efen2ants shippin5 co%po%ation

an2 the su%et& co3pan& a%e liable to the plaintiff fo% the latte%s lost lo5s.;Qﾧ

The Cou%t of Appeals affi%3e2 in pa%t the RTC 6u253ent b& sustainin5 the liabilit&

of South Sea Su%et& an2 1nsu%ance Co3pan& South Sea) but 3o2ifie2 it b& hol2in5 that

Se/en B%othe%s Shippin5 Co%po%ation Se/en B%othe%s :as not liable fo% the lost ca%5o.

+Qﾧ

1n 3o2if&in5 the RTC 6u253ent) the %espon2ent appellate cou%t %atiocinate2 thus81t appea%s that the%e is a stipulation in the cha%te% pa%t& that the ship o:ne% :oul2 be

ealen4uela file2 sepa%ate petitions fo% %e/ie: befo%e this Cou%t. 1n a Resolution 2ate2

,une ') *((+) this Cou%t 2enie2 the petition of South Sea."Qﾧ The%e the Cou%t foun2 no

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%eason to %e/e%se the factual fin2in5s of the t%ial cou%t an2 the Cou%t of Appeals that Chua

:as in2ee2 an autho%i4e2 a5ent of South Sea :hen he %ecei/e2 >alen4uelas p%e3iu3

pa&3ent fo% the 3a%ine ca%5o insu%ance polic& :hich :as thus bin2in5 on the insu%e%.#Qﾧ

The Cou%t is no: calle2 upon to %esol/e the petition fo% %e/ie: file2 b& >alen4uela

assailin5 the CA ecision :hich ealen4uelas a%5u3ents %e/ol/e a%oun2 a sin5le issue8 :hethe% o% not

%espon2ent Cou%t of Appeals co33itte2 a %e/e%sible e%%o% in uphol2in5 the /ali2it& of

the stipulation in the cha%te% pa%t& ealen4uela. E/en the latte% a23its this in its petition.*'Qﾧ

The t%ial cou%t 2ee3e2 the cha%te% pa%t& stipulation /oi2 fo% bein5 cont%a%& to public

polic&)*Qﾧ citin5 A%ticle *";+ of the Ci/il Co2e :hich p%o/i2es8

A%t. *";+. An& of the follo:in5 o% si3ila% stipulations shall be consi2e%e2 un%easonable)

un6ust an2 cont%a%& to public polic&8

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* That the 5oo2s a%e t%anspo%te2 at the %is= of the o:ne% o% shippe%

' That the co33on ca%%ie% :ill not be liable fo% an& loss) 2est%uction) o% 2ete%io%ation of

the 5oo2s

That the co33on ca%%ie% nee2 not obse%/e an& 2ili5ence in the custo2& of the 5oo2s

; That the co33on ca%%ie% shall e


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p%i/ate ca%%ie%.Conse9uentl&) the public polic& e3bo2ie2 the%ein is not cont%a/ene2 b&

stipulations in a cha%te% pa%t& that lessen o% %e3o/e the p%otection 5i/en b& la: in

cont%acts in/ol/in5 co33on ca%%ie%s.

The issue pose2 in this case an2 the a%5u3ents %aise2 b& petitione% a%e not no/el

the& :e%e %esol/e2 lon5 a5o b& this Cou%t in 0o3e 1nsu%ance Co. /s. A3e%ican

Stea3ship A5encies) 1nc.*#Qﾧ 1n that case) the t%ial cou%t si3ila%l& nullifie2 a stipulation

i2entical to that in/ol/e2 in the p%esent case fo% bein5 cont%a%& to public polic& base2 on

A%ticle *";; of the Ci/il Co2e an2 A%ticle +#" of the Co2e of Co33e%ce. Conse9uentl&)

the t%ial cou%t hel2 the shipo:ne% liable fo% 2a3a5es %esultin5 f%o3 the pa%tial loss of the

ca%5o. This Cou%t %e/e%se2 the t%ial cou%t an2 lai2 2o:n) th%ou5h M%. ,ustice ,ose P.

Ben54on) the follo:in5 :ell-settle2 obse%/ation an2 2oct%ine8

The p%o/isions of ou% Ci/il Co2e on co33on ca%%ie%s :e%e ta=en f%o3 An5lo-A3e%ican

la:. Un2e% A3e%ican 6u%isp%u2ence) a co33on ca%%ie% un2e%ta=in5 to ca%%& a special

ca%5o o% cha%te%e2 to a special pe%son onl&) beco3es a p%i/ate ca%%ie%. As a p%i/ate ca%%ie%)a stipulation e


47/120

li=e p%i/ate %espon2ent f%o3 the ne5li5ence of his e3plo&ee o% se%/ant :hich is the

situation in this case.'FQﾧ This contention of petitione% is be%eft of 3e%it) fo% it %aises a

2istinction :ithout an& substanti/e 2iffe%ence. The case of 0o3e 1nsu%ance specificall&

2ealt :ith the liabilit& of the shipo:ne% fo% acts o% ne5li5ence of its captain an2

c%e:'*Qﾧ an2 a cha%te% pa%t& stipulation :hich e


48/120

as oppose2 to %i5hts to pe%sonalit& an2 fa3il& %i5hts :hich 3a& not be 3a2e the sub6ect

of :ai/e%.'!Qﾧ Bein5 patentl& an2 un2oubte2l& pat%i3onial) petitione%s %i5ht confe%%e2

un2e% sai2 a%ticles 3a& be :ai/e2. This) the petitione% 2i2 b& acce2in5 to the cont%actual

stipulation that it is solel& %esponsible fo% an& 2a3a5e to the ca%5o) the%eb& e


49/120

Petitione% cites She:a%a3 /s. Philippine Ai%lines) 1nc.'(Qﾧ :hich) in tu%n) 9uote2

,uan 7s3ael H Co. /s. Gabino Ba%%eto H Co.FQ ﾧ an2 a%5ues that the public polic&

consi2e%ations state2 the%e /is--/is cont%actual stipulations li3itin5 the ca%%ie%s liabilit&

be applie2 :ith e9ual fo%ce to this case.*Q ﾧ 1t also cites Manila Rail%oa2 Co. /s.

Co3paia T%ansatlantica'Q ﾧ an2 conten2s that stipulations e


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state that the Resolution of this Cou%t 2ate2 ,une ') *((+;'Qﾧ affi%3in5 the liabilit& of

South Sea 2oes not) b& itself) necessa%il& p%eclu2e the petitione% f%o3 p%ocee2in5 a5ainst

p%i/ate %espon2ent. An a55%ie/e2 pa%t& 3a& still %eco/e% the 2eficienc& f%o3 the pe%son

causin5 the loss in the e/ent the a3ount pai2 b& the insu%ance co3pan& 2oes not full&

co/e% the loss. A%ticle ''F" of the Ci/il Co2e p%o/i2es8

ART. ''F". 1f the plaintiffs p%ope%t& has been insu%e2) an2 he has %ecei/e2 in2e3nit&

f%o3 the insu%ance co3pan& fo% the in6u%& o% loss a%isin5 out of the :%on5 o% b%each of

cont%act co3plaine2 of) the insu%ance co3pan& shall be sub%o5ate2 to the %i5hts of the

insu%e2 a5ainst the :%on52oe% o% the pe%son :ho has /iolate2 the cont%act. 1f the a3ount

pai2 b& the insu%ance co3pan& 2oes not full& co/e% the in6u%& o% loss) the a55%ie/e2 pa%t&

shall be entitle2 to %eco/e% the 2eficienc& f%o3 the pe%son causin5 the loss o% in6u%&.

D0ERE$ORE) p%e3ises consi2e%e2) the petition is he%eb& EN1E fo% its utte%

failu%e to sho: an& %e/e%sible e%%o% on the pa%t of Respon2ent Cou%t. The assaile2

ecision is A$$1RME.SO ORERE.

Na%/asa) C.,.) Chai%3an) a/i2e) ,%.) Melo) an2 $%ancisco) ,,.) concu%.

Republic of the Philippines

SUPREME COURT

Manila

T01R 1>1S1ON

G.R. No. **''#" ece3be% *') *(("

NAT1ONAL STEEL CORPORAT1ON) petitione%)

/s.

COURT O$ APPEALS AN >LASONS S01PP1NG) 1NC.) %espon2ents.

G.R. No. **'+F ece3be% *') *(("

>LASONS S01PP1NG) 1NC.) petitione%)

/s.

COURT O$ APPEALS AN NAT1ONAL STEEL CORPORAT1ON) %espon2ents.

PANGAN1BAN) ,.8

The Cou%t fin2s occasion to appl& the %ules on the sea:o%thiness of p%i/ate ca%%ie%) its

o:ne%s %esponsibilit& fo% 2a3a5e to the ca%5o an2 its liabilit& fo% 2e3u%%a5e an2

atto%ne&s fees. The Cou%t also %eite%ates the :ell-=no:n %ule that fin2in5s of facts of t%ial

cou%ts) :hen affi%3e2 b& the Cou%t of Appeals) a%e bin2in5 on this Cou%t.

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The Case

Befo%e us a%e t:o sepa%ate petitions fo% %e/ie: file2 b& National Steel Co%po%ation NSC

an2 >lasons Shippin5) 1nc. >S1) both of :hich assail the Au5ust *') *(( ecision of

the Cou%t of Appeals. * The Cou%t of Appeals 3o2ifie2 the 2ecision of the Re5ional T%ial

Cou%t of Pasi5) Met%o Manila) B%anch *! in Ci/il Case No. '*". The RTC 2ispose2 as

follo:s8

D0ERE$ORE) 6u253ent is he%eb& %en2e%e2 in fa/o% of 2efen2ant an2 a5ainst the

plaintiff 2is3issin5 the co3plaint :ith cost a5ainst plaintiff) an2 o%2e%in5 plaintiff to pa&

the 2efen2ant on the counte%clai3 as follo:s8

*. The su3 of P"+)FFF.FF as unpai2 f%ei5ht an2 P##)FFF.FF as 2e3u%%a5e :ith inte%est at

the le5al %ate on both a3ounts f%o3 Ap%il ") *("! until the sa3e shall ha/e been full&

pai2

'. Atto%ne&s fees an2 e


52/120

@>LASONS 1@ to 3a=e one * /o&a5e to loa2 steel p%o2ucts at 1li5an Cit& an2 2ischa%5e

the3 at No%th 0a%bo%) Manila) un2e% the follo:in5 te%3s an2 con2itions) /i48

*. . . .

'. Ca%5o8 $ull ca%5o of steel p%o2ucts of not less than ')+FF MT) *F 3o%e o% less atMaste%s option.

. . . .

;. $%ei5htIPa&3ent8 PF.FFI3et%ic ton) $1OST basis. Pa&3ent upon p%esentation of Bill

of La2in5 :ithin fifteen *+ 2a&s.

+. La&2a&sICancellin58 ,ul& '!) *(";IAu5. +) *(";.

!. Loa2in5Iischa%5in5 Rate8 "+F tons pe% DDS01NC. Deathe% Do%=in5 a& of ';

consecuti/e hou%s) Sun2a&s an2 0oli2a&s 1nclu2e2.

". e3u%%a5eIispatch8 P#)FFF.FFIP;)FFF.FF pe% 2a&.

#. . . .

(. Ca%5o 1nsu%ance8 Cha%te%e%s an2Io% Shippe%s 3ust insu%e the ca%5oes. Shipo:ne%s not

%esponsible fo% lossesI2a3a5es e


53/120

othe% loss o% 2a3a5e a%isin5 f%o3 inhe%ent 2efect) 9ualit& o% /ice of the ca%5o

insufficienc& of pac=in5 . . . latent 2efects not 2isco/e%able b& 2ue 2ili5ence an& othe%

cause a%isin5 :ithout the actual fault o% p%i/it& of O:ne%s o% :ithout the fault of the

a5ents o% se%/ants of o:ne%s.@

Pa%a5%aph *' of sai2 NAN7OA1 Cha%te% Pa%t& also p%o/i2es that @o:ne%s shall not be

%esponsible fo% split) chafin5 an2Io% an& 2a3a5e unless cause2 b& the ne5li5ence o%

2efault of the 3aste% an2 c%e:.@

' On Au5ust !) " an2 #) *(";) in acco%2ance :ith the Cont%act of >o&a5e Cha%te% 0i%e)

the M> @>LASONS 1@ loa2e2 at plaintiffs pie% at 1li5an Cit&) the NSCs ship3ent of

*)!"" s=i2s of tinplates an2 (' pac=a5es of hot %olle2 sheets o% a total of *)"!( pac=a5es

:ith a total :ei5ht of about ');#*.*( 3et%ic tons fo% ca%%ia5e to Manila. The ship3ent

:as place2 in the th%ee hatches of the ship. Chief Mate Gon4alo Saban2o) actin5 as

a5ent of the /essel)Q ac=no:le25e2 %eceipt of the ca%5o on boa%2 an2 si5ne2 the

co%%espon2in5 bill of la2in5) B.L.P.P. No. F' E


54/120

2e3an2e2 pa&3ent of sai2 clai3 but 2efen2ant >S1 %efuse2 an2 faile2 to pa&. Plaintiff

file2 its co3plaint a5ainst 2efen2ant on Ap%il '*) *("! :hich :as 2oc=ete2 as Ci/il Case

No. '*") C$1) Ri4al.

! 1n its co3plaint) plaintiff clai3e2 that it sustaine2 losses in the afo%esai2 a3ount of

P(;*)*;+.*# as a %esult of the act) ne5lect an2 2efault of the 3aste% an2 c%e: in the

3ana5e3ent of the /essel as :ell as the :ant of 2ue 2ili5ence on the pa%t of the

2efen2ant to 3a=e the /essel sea:o%th& an2 to 3a=e the hol2s an2 all othe% pa%ts of the

/essel in :hich the ca%5o :as ca%%ie2) fit an2 safe fo% its %eception) ca%%ia5e an2

p%ese%/ation all in /iolation of 2efen2ants un2e%ta=in5 un2e% thei% Cont%act of >o&a5e

Cha%te% 0i%e.

" 1n its ans:e%) 2efen2ant 2enie2 liabilit& fo% the alle5e2 2a3a5e clai3in5 that the M>

@>LASONS 1@ :as sea:o%th& in all %espects fo% the ca%%ia5e of plaintiffs ca%5o that sai2

/essel :as not a @co33on ca%%ie%@ inas3uch as she :as un2e% /o&a5e cha%te% cont%act

:ith the plaintiff as cha%te%e% un2e% the cha%te% pa%t& that in the cou%se of the /o&a5ef%o3 1li5an Cit& to Manila) the M> @>LASONS 1@ encounte%e2 /e%& %ou5h seas) st%on5

:in2s an2 a2/e%se :eathe% con2ition) causin5 st%on5 :in2s an2 bi5 :a/es to

continuousl& poun2 a5ainst the /essel an2 sea:ate% to o/e%flo: on its 2ec= an2 hatch

co/e%s) that un2e% the Cont%act of >o&a5e Cha%te% 0i%e) 2efen2ant shall not be %esponsible

fo% lossesI2a3a5es e @>LASONS 1@ eo&a5e Cha%te% Pa%t& p%o/i2es that

loa2in5 an2 2ischa%5in5 of the ca%5o :as on $1OST te%3s :hich 3eans that the /essel

:as f%ee of %is= an2 e


55/120

b That un2e% thei% >o&a5e Cha%te% 0i%e Cont%act) plaintiff ha2 a5%ee2 to pa& 2efen2ant

the su3 of P#)FFF.FF pe% 2a& fo% 2e3u%%a5e. The /essel :as on 2e3u%%a5e fo% ele/en

** 2a&s in Manila :aitin5 fo% plaintiff to 2ischa%5e its ca%5o f%o3 the /essel. Thus)

plaintiff :as liable to pa& 2efen2ant 2e3u%%a5e in the total a3ount of P##)FFF.FF.

c $o% filin5 a clea%l& unfoun2e2 ci/il action a5ainst 2efen2ant) plaintiff shoul2 be

o%2e%e2 to pa& 2efen2ant atto%ne&s fees an2 all e @>LASONS 1@ is a /essel of Philippine %e5ist%& en5a5e2 in the t%a3pin5

se%/ice an2 is a/ailable fo% hi%e onl& un2e% special cont%acts of cha%te% pa%t& as in this

pa%ticula% case.

b That fo% pu%poses of the /o&a5e co/e%e2 b& the Cont%act of >o&a5e Cha%te% 0i%e E >LASONS 1@ :as co/e%e2 b& the %e9ui%e2 sea:o%thiness ce%tificates

inclu2in5 the Ce%tification of Classification issue2 b& an inte%national classification

societ&) the N1PPON JA1,1 J7OJA1 E


56/120

:ate% f%o3 outsi2e especiall& :hen the :eathe% is ba2 o% %ainin5. The t%ust cause2 b&

s:eat o% 3oistu%e on the tinplates 3a& be consi2e%e2 as a loss o% 2a3a5e but then)

2efen2ant cannot be hel2 liable fo% it pu%suant to A%ticle *"; of the Ci/il Case :hich

eo&a5e Cha%te% 0i%e

cont%act to pa& 2e3u%%a5e of P#)FFF.FF pe% 2a& of 2ela& in the unloa2in5 of the ca%5oes.

The 2ela& a3ounte2 to ele/en ** 2a&s the%eb& 3a=in5 plaintiff liable to pa& 2efen2ant

fo% 2e3u%%a5e in the a3ount of P##)FFF.FF.


57/120

Appealin5 the RTC 2ecision to the Cou%t of Appeals) NSC alle5e2 si< e%%o%s8

1

The t%ial cou%t e%%e2 in fin2in5 that the M> @>LASONS 1@ :as sea:o%th&) p%ope%l&

3anne2) e9uippe2 an2 supplie2) an2 that the%e is no p%oof of :illful ne5li5ence of the/essels office%s.

11

The t%ial cou%t e%%e2 in fin2in5 that the %ustin5 of NSCs tinplates :as 2ue to the inhe%ent

natu%e o% cha%acte% of the 5oo2s an2 not 2ue to contact :ith sea:ate%.

111

The t%ial cou%t e%%e2 in fin2in5 that the ste/e2o%es hi%e2 b& NSC :e%e ne5li5ent in the

unloa2in5 of NSCs ship3ent.

1>

The t%ial cou%t e%%e2 in eS1 f%o3 liabilit& on the 5%oun2 of fo%ce 3a6eu%e.

>

The t%ial cou%t e%%e2 in fin2in5 that NSC /iolate2 the cont%act of /o&a5e cha%te% hi%e.

>1

The t%ial cou%t e%%e2 in o%2e%in5 NSC to pa& f%ei5ht) 2e3u%%a5e an2 atto%ne&s fees) to

>S1. ;

As ea%lie% state2) the Cou%t of Appeals 3o2ifie2 the 2ecision of the t%ial cou%t b& %e2ucin5

the 2e3u%%a5e f%o3 P##)FFF.FF to P;;)FFF.FF an2 2eletin5 the a:a%2 of atto%ne&s fees

an2 eS1 file2 sepa%ate 3otions fo% %econsi2e%ation. 1n a

Resolution + 2ate2 Octobe% 'F) *(() the appellate cou%t 2enie2 both 3otions.

Un2aunte2) NSC an2 >S1 file2 thei% %especti/e petitions fo% %e/ie: befo%e this Cou%t. On

3otion of >S1) the Cou%t o%2e%e2 on $eb%ua%& *;) *((; the consoli2ation of these

petitions. !

The 1ssues

1n its petition " an2 3e3o%an2u3) # NSC %aises the follo:in5 9uestions of la: an2 fact8

uestions of La:

*. Dhethe% o% not a cha%te%e% of a /essel is liable fo% 2e3u%%a5e 2ue to ca%5o unloa2in5

2ela&s cause2 b& :eathe% inte%%uption


58/120

'. Dhethe% o% not the alle5e2 @sea:o%thiness ce%tificates@ E


59/120

The Cou%ts Rulin5

The Cou%t affi%3s the assaile2 ecision of the Cou%t of Appeals) eS1 cont%acte2 :ith NSC as a co33on

ca%%ie% o% as a p%i/ate ca%%ie%. The %esolution of this p%eli3ina%& 9uestion 2ete%3ines the

la:) stan2a%2 of 2ili5ence an2 bu%2en of p%oof applicable to the p%esent case.

A%ticle *"' of the Ci/il Co2e 2efines a co33on ca%%ie% as @pe%sons) co%po%ations) fi%3s

o% associations en5a5e2 in the business of ca%%&in5 o% t%anspo%tin5 passen5e%s o% 5oo2s o%

both) b& lan2) :ate%) o% ai%) fo% co3pensation) offe%in5 thei% se%/ices to the public.@ 1t has

been hel2 that the t%ue test of a co33on ca%%ie% is the ca%%ia5e of passen5e%s o% 5oo2s)

p%o/i2e2 it has space) fo% all :ho opt to a/ail the3sel/es of its t%anspo%tation se%/ice fo%

a fee.** A ca%%ie% :hich 2oes not 9ualif& un2e% the abo/e test is 2ee3e2 a p%i/ate ca%%ie%.@Gene%all&) p%i/ate ca%%ia5e is un2e%ta=en b& special a5%ee3ent an2 the ca%%ie% 2oes not

hol2 hi3self out to ca%%& 5oo2s fo% the 5ene%al public. The 3ost t&pical) althou5h not the

onl& fo%3 of p%i/ate ca%%ia5e) is the cha%te% pa%t&) a 3a%iti3e cont%act b& :hich the

cha%te%e%) a pa%t& othe% than the shipo:ne%) obtains the use an2 se%/ice of all o% so3e pa%t

of a ship fo% a pe%io2 of ti3e o% a /o&a5e o% /o&a5es.@ *'

1n the instant case) it is un2ispute2 that >S1 2i2 not offe% its se%/ices to the 5ene%al public.

As foun2 b& the Re5ional T%ial Cou%t) it ca%%ie2 passen5e%s o% 5oo2s onl& fo% those it

chose un2e% a @special cont%act of cha%te% pa%t&.@ * As co%%ectl& conclu2e2 b& the Cou%t

of Appeals) the M> >lasons 1 @:as not a co33on but a p%i/ate ca%%ie%.@ *; Conse9uentl&)

the %i5hts an2 obli5ations of >S1 an2 NSC) inclu2in5 thei% %especti/e liabilit& fo% 2a3a5e

to the ca%5o) a%e 2ete%3ine2 p%i3a%il& b& stipulations in thei% cont%act of p%i/ate ca%%ia5e

o% cha%te% pa%t&. *+ Recentl&) in >alen4uela 0a%2:oo2 an2 1n2ust%ial Suppl&) 1nc.) /s.

Cou%t of Appeals an2 Se/en B%othe%s Shippin5 Co%po%ation) *! the Cou%t %ule28

. . . in a cont%act of p%i/ate ca%%ia5e) the pa%ties 3a& f%eel& stipulate thei% 2uties an2

obli5ations :hich pe%fo%ce :oul2 be bin2in5 on the3. Unli=e in a cont%act in/ol/in5 a

co33on ca%%ie%) p%i/ate ca%%ia5e 2oes not in/ol/e the 5ene%al public. 0ence) the st%in5ent

p%o/isions of the Ci/il Co2e on co33on ca%%ie%s p%otectin5 the 5ene%al public cannot

6ustifiabl& be applie2 to a ship t%anspo%tin5 co33e%cial 5oo2s as a p%i/ate ca%%ie%.Conse9uentl&) the public polic& e3bo2ie2 the%ein is not cont%a/ene2 b& stipulations in a

cha%te% pa%t& that lessen o% %e3o/e the p%otection 5i/en b& la: in cont%acts in/ol/in5

co33on ca%%ie%s. *"

ES1s Responsibilit& an2

Liabilit& O/e% NSCs Ca%5o


60/120

1t is clea% f%o3 the pa%ties Cont%act of >o&a5e Cha%te% 0i%e) 2ate2 ,ul& *") *(";) that >S1

@shall not be %esponsible fo% losses eS1s :illful ne5li5ence o% failu%e to e >lasons 1 sea:o%th& an2 fit fo% hol2in5) ca%%&in5 an2 safe=eepin5 the

ca%5o. 1neluctabl&) the bu%2en of p%oof :as place2 on NSC b& the pa%ties a5%ee3ent.

This /ie: fin2s fu%the% suppo%t in the Co2e of Co33e%ce :hich pe%tinentl& p%o/i2es8

A%t. !*. Me%chan2ise shall be t%anspo%te2 at the %is= an2 /entu%e of the shippe%) if the

cont%a%& has not been e


61/120

Since . . . a p%i/ate ca%%ie% is not an insu%e% but un2e%ta=es onl& to eS1 e >lasons 1 sea:o%th& fo% the inten2e2 pu%pose un2e% the cha%te% pa%t& ' :hethe% the 2a3a5e to the ca%5o shoul2

be att%ibute2 to the :illful ne5li5ence of the office%s an2 c%e: of the /essel o% of the

ste/e2o%es hi%e2 b& NSC an2 :hethe% the %ustin5 of the tinplates :as cause2 b& its

o:n @s:eat@ o% b& contact :ith sea:ate%.

These 9uestions of fact :e%e th%eshe2 out an2 2eci2e2 b& the t%ial cou%t) :hich ha2 the

fi%sthan2 oppo%tunit& to hea% the pa%ties conflictin5 clai3s an2 to ca%efull& :ei5h thei%


62/120

%especti/e e/i2ence. The fin2in5s of the t%ial cou%t :e%e subse9uentl& affi%3e2 b& the

Cou%t of Appeals. Dhe%e the factual fin2in5s of both the t%ial cou%t an2 the Cou%t of

Appeals coinci2e) the sa3e a%e bin2in5 on this Cou%t. '' De st%ess that) sub6ect to so3e

e >lasons 1 @:as e9uippe2 :ith ne:

can/as co/e%s in tan2e3 :ith the ol2 ones as in2icate2 in the Ma%ine P%otest . . .@ '" De

2isa5%ee.

The %eco%2s sufficientl& suppo%t >S1s contention that the ship use2 the ol2 ta%paulin) onl&in a22ition to the ne: one use2 p%i3a%il& to 3a=e the ships hatches :ate%ti5ht. The

fo%e5oin5 a%e clea% f%o3 the 3a%ine p%otest of the 3aste% of the M> >lasons 1) Antonio

C. u3lao) an2 the 2eposition of the ships boats:ain) ,ose Pascua. The salient po%tions

of sai2 3a%ine p%otest %ea28

. . . That the MI> @>LASONS 1@ 2epa%te2 1li5an Cit& o% about F"F hou%s of Au5ust #)

*(";) loa2e2 :ith app%o


63/120

National Steel Co%po%ation that befo%e 2epa%tu%e) the /essel :as %i55e2) full& e9uippe2

an2 clea%e2 b& the autho%ities that on o% about Au5ust () *(";) :hile in the /icinit& of

the :este%n pa%t of Ne5%os an2 Pana&) :e encounte%e2 /e%& %ou5h seas an2 st%on5 :in2s

an2 Manila office :as a2/ise2 b& tele5%a3 of the a2/e%se :eathe% con2itions

encounte%e2 that in the 3o%nin5 of Au5ust *F) *(";) the :eathe% con2ition chan5e2 to:o%se an2 st%on5 :in2s an2 bi5 :a/es continue2 poun2in5 the /essel at he% po%t si2e

causin5 sea :ate% to o/e%flo: on 2ec= an2hatch sic co/e%s an2 :hich cause2 the fi%st

la&e% of the can/ass co/e%in5 to 5i/e :a& :hile the ne: can/ass co/e%in5 still hol2in5

on

That the :eathe% con2ition i3p%o/e2 :hen :e %eache2 u3ali Point p%otecte2 b&

Min2o%o that :e %e-secu%e2 the can/ass co/e%in5 bac= to position that in the afte%noon

of Au5ust *F) *(";) :hile ente%in5 Ma%icaban Passa5e) :e :e%e a5ain e


64/120

9 Dhat is the hatch boa%2 3a2e of

a 1t is 3a2e of :oo2) :ith a han2le.

9 An2 asi2e f%o3 the hatch boa%2) is the%e an& othe% 3ate%ial the%e to co/e% the hatch

a The%e is a bea3 suppo%tin5 the hatch boa%2.

9 Dhat is this bea3 3a2e of

a 1t is 3a2e of steel) si%.

9 1s the bea3 that :as place2 in the hatch openin5 co/e%in5 the :hole hatch openin5

a No) si%.

9 0o: 3an& hatch bea3s :e%e the%e place2 ac%oss the openin5

a The%e a%e fi/e bea3s in one hatch openin5.

ATT7 EL ROSAR1O

9 An2 on top of the bea3s &ou sai2 the%e is a hatch boa%2. 0o: 3an& pieces of :oo2 a%e

put on top

a Plent&) si%) because the%e a%e se/e%al pieces on top of the hatch bea3.

9 An2 is the%e a space bet:een the hatch boa%2s

a The%e is none) si%.

9 The& a%e ti5ht to5ethe%

a 7es) si%.

9 0o: ti5ht

a >e%& ti5ht) si%.

9 No:) on top of the hatch boa%2s) acco%2in5 to &ou) is the can/ass co/e%. 0o: 3an&

can/as co/e%s

a T:o) si%. '(

That 2ue 2ili5ence :as e >lasons 1 :as

fu%the% 2e3onst%ate2 b& the fact that) 2espite encounte%in5 %ou5h :eathe% t:ice) the ne:

ta%paulin 2i2 not 5i/e :a& an2 the ships hatches an2 ca%5o hol2s %e3aine2 :ate%p%oof.

As aptl& state2 b& the Cou%t of Appeals) @. . . :e fin2 no %eason not to sustain the


65/120

conclusion of the lo:e% cou%t base2 on o/e%:hel3in5 e/i2ence) that the M> >LASONS

1 :as sea:o%th& :hen it un2e%too= the /o&a5e on Au5ust #) *("; ca%%&in5 on boa%2

the%eof plaintiff-appellants ship3ent of *)!"" s=i2s of tinplates an2 (' pac=a5es of hot

%olle2 sheets o% a total of *)"!( pac=a5es f%o3 NSCs pie% in 1li5an Cit& a%%i/in5 safel& at

No%th 0a%bo%) Po%t A%ea) Manila) on Au5ust *') *("; . . . F

1n2ee2) NSC faile2 to 2ischa%5e its bu%2en to sho: ne5li5ence on the pa%t of the office%s

an2 the c%e: of M> >lasons 1. On the cont%a%&) the %eco%2s %e/eal that it :as the

ste/e2o%es of NSC :ho :e%e ne5li5ent in unloa2in5 the ca%5o f%o3 the ship.

The ste/e2o%es e3plo&e2 onl& a tent-li=e 3ate%ial to co/e% the hatches :hen st%on5 %ains

occasione2 b& a passin5 t&phoon 2is%upte2 the unloa2in5 of the ca%5o. This tent-li=e

co/e%in5) ho:e/e%) :as clea%l& ina2e9uate fo% =eepin5 %ain an2 sea:ate% a:a& f%o3 the

hatches of the ship. >icente An5lion5to) an office% of >S1) testifie2 thus8

ATT7 AMORA8

No:) 2u%in5 &ou% testi3on& on No/e3be% +) *("() &ou state2 on Au5ust *; &ou :ent

on boa%2 the /essel upon notice f%o3 the National Steel Co%po%ation in o%2e% to con2uct

the inspection of the ca%5o. u%in5 the cou%se of the in/esti5ation) 2i2 &ou chance to see

the 2ischa%5in5 ope%ation

D1TNESS8

A 7es) si%) upon 3& a%%i/al at the /essel) 1 sa: so3e of the tinplates al%ea2& 2ischa%5e2

on the pie% but 3a6o%it& of the tinplates :e%e insi2e the hall) all the hatches :e%e opene2.

1n connection :ith these ca%5oes :hich :e%e unloa2e2) :he%e is the place.

A At the Pie%.

Dhat :as use2 to p%otect the sa3e f%o3 :eathe%

ATT7 LOPE8

De ob6ect) &ou% 0ono%) this 9uestion :as al%ea2& as=e2. This pa%ticula% 3atte% . . . the

t%ansc%ipt of steno5%aphic notes sho:s the sa3e :as co/e%e2 in the 2i%ect e


66/120

Dhat :as use2 in o%2e% to p%otect the ca%5o f%o3 the :eathe%

A A base of can/as :as use2 as co/e% on top of the tin plates) an2 tents :e%e built at the

openin5 of the hatches.

7ou also state2 that the hatches :e%e al%ea2& opene2 an2 that the%e :e%e tentsconst%ucte2 at the openin5 of the hatches to p%otect the ca%5o f%o3 the %ain. No:) :ill &ou

2esc%ibe toQ the Cou%t the tents const%ucte2.

A The tents a%e 6ust a base of can/as :hich loo= li=e a tent of an 1n2ian ca3p %aise2Q

hi5h at the 3i22le :ith the :hole si2e sepa%ate2 2o:n to the hatch) the si4e of the hatch

an2 it is soa=s sicQ at the 3i22le because of those :eathe% an2 this can be use2 onl& to

te3po%a%il& p%otect the ca%5o f%o3 5ettin5 :et b& %ains.

No:) is this p%oce2u%e a2opte2 b& the ste/e2o%es of co/e%in5 tents p%ope%

A No) si%) at the ti3e the& :e%e 2ischa%5in5 the ca%5o) the%e :as a t&phoon passin5 b&

an2 the hatch tent :as not 5oo2 enou5h to hol2 all of it to p%e/ent the :ate% soa=in5

th%ou5h the can/ass an2 ente% the ca%5o.

1n the cou%se of &ou% inspection) M%. An5lin5to sicQ) 2i2 &ou see in fact the :ate% ente%

an2 soa= into the can/ass an2 tinplates.

A 7es) si%) the secon2 ti3e 1 :ent the%e) 1 sa: it.

As o:ne% of the /essel) 2i2 &ou not a2/ise the National Steel Co%po%ation ofQ the

p%oce2u%e a2opte2 b& its ste/e2o%es in 2ischa%5in5 the ca%5o pa%ticula%l& in this tent

co/e%in5 of the hatches

A 7es) si%) 1 2i2 the fi%st ti3e 1 sa: it) 1 calle2 the attention of the ste/e2o%es but theste/e2o%es 2i2 not 3in2 at all) so) calle2 the attention of the %ep%esentati/e of the National

Steel but nothin5 :as 2one) 6ust the sa3e. $inall&) 1 :%ote a lette% to the3. *

NSC atte3pts to 2isc%e2it the testi3on& of An5lion5to b& 9uestionin5 his failu%e to

co3plain i33e2iatel& about the ste/e2o%es ne5li5ence on the fi%st 2a& of unloa2in5)

pointin5 out that he :%ote his lette% to petitione% onl& se/en 2a&s late%. ' The Cou%t isnot pe%sua2e2. An5lion5tos can2i2 ans:e% in his afo%e9uote2 testi3on& satisfacto%il&

e


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he :as not %esponsible fo% the ste/e2o%es o% the unloa2in5 ope%ations. 1n fact) he :as

3e%el& e >LASONS 1 :hen %ains occu%%e2 2u%in5 the

2ischa%5in5 of the ca%5o thus allo:in5 %ain :ate% an2 sea:ate% sp%a& to ente% the hatches

an2 to 2%ift to an2 fall on the ca%5o. 1t :as p%o/en that the ste/e2o%es 3e%el& set up

te3po%a%& tents o% can/as to co/e% the hatch openin5s :hen it %aine2 2u%in5 the

unloa2in5 ope%ations so that it :oul2 be easie% fo% the3 to %esu3e :o%= afte% the %ains

stoppe2 b& 6ust %e3o/in5 sai2 tents o% can/ass. 1t has also been sho:n that on Au5ust 'F)*(";) >S1 P%esi2ent >icente An5lion5to :%ote NSCQ callin5 attention to the 3anne% the

ste/e2o%es hi%e2 b& NSCQ :e%e 2ischa%5in5 the ca%5o on %ain& 2a&s an2 the i3p%ope%

closin5 of the hatches :hich allo:e2 continuous hea/& %ain :ate% to lea= th%ou5h an2

2%ip to the tinplates co/e%s an2 >icente An5lion5toQ also su55estin5 that 2ue to fou% ;

2a&s continuos %ains :ith st%on5 :in2s that the hatches be totall& close2 2o:n an2

co/e%e2 :ith can/as an2 the hatch tents lo:e%e2. E


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A 2iscussion of this issue appea%s inconse9uential an2 unnecessa%&. As p%e/iousl&

2iscusse2) the 2a3a5e to the tinplates :as occasione2 not b& ai%bo%ne 3oistu%e but b&

contact :ith %ain an2 sea:ate% :hich the ste/e2o%es ne5li5entl& allo:e2 to seep in 2u%in5

the unloa2in5.

Secon2 1ssue8 Effect of NSCs $ailu%e to

1nsu%e the Ca%5o

The obli5ation of NSC to insu%e the ca%5o stipulate2 in the Cont%act of >o&a5e Cha%te%

0i%e is totall& sepa%ate an2 2istinct f%o3 the cont%actual o% statuto%& %esponsibilit& that

3a& be incu%%e2 b& >S1 fo% 2a3a5e to the ca%5o cause2 b& the :illful ne5li5ence of the

office%s an2 the c%e: of M> >lasons 1. Clea%l&) the%efo%e) NSCs failu%e to insu%e the

ca%5o :ill not affect its %i5ht) as o:ne% an2 %eal pa%t& in inte%est) to file an action a5ainst

>S1 fo% 2a3a5es cause2 b& the latte%s :illful ne5li5ence. De 2o not fin2 an&thin5 in the

cha%te% pa%t& that :oul2 3a=e the liabilit& of >S1 fo% 2a3a5e to the ca%5o contin5ent on

o% affecte2 in an& 3anne% b& NSCs obtainin5 an insu%ance o/e% the ca%5o.Thi%2 1ssue8 A23issibilit& of Ce%tificates

P%o/in5 Sea:o%thiness

NSCs contention that M> >lasons 1 :as not sea:o%th& is ancho%e2 on the alle5e2

ina23issibilit& of the ce%tificates of sea:o%thiness offe%e2 in e/i2ence b& >S1. The sai2

ce%tificates inclu2e the follo:in58

*. Ce%tificate of 1nspection of the Philippines Coast Gua%2 at Cebu

'. Ce%tificate of 1nspection f%o3 the Philippine Coast Gua%2

. 1nte%national Loa2 Line Ce%tificate f%o3 the Philippine Coast Gua%2

;. Coast:ise License f%o3 the Boa%2 of T%anspo%tation

+. Ce%tificate of App%o/al fo% Con/e%sion issue2 b& the Bu%eau of Custo3s !

NSC a%5ues that the ce%tificates a%e hea%sa& fo% not ha/in5 been p%esente2 in acco%2ance

:ith the Rules of Cou%t. 1t points out that E


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3a=e%) o% b& a subsc%ibin5 :itness. E >lasons 1

:as not sea:o%th&. As obse%/e2 ea%lie%) the /essel :as a p%i/ate ca%%ie% an2) as such) it

2i2 not ha/e the obli5ation of a co33on ca%%ie% to sho: that it :as sea:o%th&. 1n2ee2)

NSC 5la%in5l& faile2 to 2ischa%5e its 2ut& of p%o/in5 the :illful ne5li5ence of >S1 in

3a=in5 the ship sea:o%th& %esultin5 in 2a3a5e to its ca%5o. Assailin5 the 5enuineness of

the ce%tificate of sea:o%thiness is not sufficient p%oof that the /essel :as not sea:o%th&.

$ou%th 1ssue8 e3u%%a5e an2 Atto%ne&s $ees

The cont%act of /o&a5e cha%te% hi%e p%o/i2es inte% alia8


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an2 holi2a&s a%e not eS1 fo% 2e3u%%a5e) e/en if it %e2uce2 the a3ount b& half.

Atto%ne&s $ees

>S1 assi5ns as e%%o% of la: the Cou%t of Appeals 2eletion of the a:a%2 of atto%ne&s fees.

De 2isa5%ee. Dhile >S1 :as co3pelle2 to liti5ate to p%otect its %i5hts) such fact b& itself

:ill not 6ustif& an a:a%2 of atto%ne&s fees un2e% A%ticle ''F# of the Ci/il Co2e :hen

@. . . no sufficient sho:in5 of ba2 faith :oul2 be %eflecte2 in a pa%t&s pe%sistence in a

case othe% than an e%%oneous con/iction of the %i5hteousness of his cause . . .@ ;;

Mo%eo/e%) atto%ne&s fees 3a& not be a:a%2e2 to a pa%t& fo% the %eason alone that the

6u253ent %en2e%e2 :as fa/o%able to the latte%) as this is tanta3ount to i3posin5 a

p%e3iu3 on ones %i5ht to liti5ate o% see= 6u2icial %e2%ess of le5iti3ate 5%ie/ances. ;+

Epilo5ue

At botto3) this appeal %eall& hin5es on a factual issue8 :hen) ho: an2 :ho cause2 the

2a3a5e to the ca%5o Ran5e2 a5ainst NSC a%e t:o fo%3i2able t%uths. $i%st) both lo:e%

cou%ts foun2 that such 2a3a5e :as b%ou5ht about 2u%in5 the unloa2in5 p%ocess :hen %ain

an2 sea:ate% seepe2 th%ou5h the ca%5o 2ue to the fault o% ne5li5ence of the ste/e2o%ese3plo&e2 b& it. Basic is the %ule that factual fin2in5s of the t%ial cou%t) :hen affi%3e2 b&

the Cou%t of Appeals) a%e bin2in5 on the Sup%e3e Cou%t. Althou5h the%e a%e settle2

eo&a5e Cha%te% 0i%e place2 the

bu%2en of p%oof fo% such loss o% 2a3a5e upon the shippe%) not upon the shipo:ne%. Such

stipulation) :hile 2isa2/anta5eous to NSC) is /ali2 because the pa%ties ente%e2 into a

cont%act of p%i/ate cha%te%) not one of co33on ca%%ia5e. Basic too is the 2oct%ine that


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cou%ts cannot %elie/e a pa%%& f%o3 the effects of a p%i/ate cont%act f%eel& ente%e2 into) on

the 5%oun2 that it is alle5e2l& one-si2e2 o% unfai% to the plaintiff. The cha%te% pa%t& is a

no%3al co33e%cial cont%act an2 its stipulations a%e a5%ee2 upon in consi2e%ation of 3an&

facto%s) not the least of :hich is the t%anspo%t p%ice :hich is 2ete%3ine2 not onl& b& the

actual costs but also b& the %is=s an2 bu%2ens assu3e2 b& the shippe% in %e5a%2 to possibleloss o% 2a3a5e to the ca%5o. 1n %eco5nition of such facto%s) the pa%ties e/en stipulate2 that

the shippe% shoul2 insu%e the ca%5o to p%otect itself f%o3 the %is=s it un2e%too= un2e% the

cha%te% pa%t&. That NSC faile2 o% ne5lecte2 to p%otect itself :ith such insu%ance shoul2

not a2/e%sel& affect >S1) :hich ha2 nothin5 to 2o :ith such failu%e o% ne5lect.

D0ERE$ORE) p%e3ises consi2e%e2) the instant consoli2ate2 petitions a%e he%eb&

EN1E. The 9uestione2 ecision of the Cou%t of Appeals is A$$1RME :ith the

MO1$1CAT1ON that the 2e3u%%a5e a:a%2e2 to >S1 is 2elete2. No p%onounce3ent as to

costs.

SO ORERE. Na%/asa) C.,.) Ro3e%o) Melo an2 $%ancisco) ,,.) concu%.

$1RST 1>1S1ON

G.R. No. *;*(*F. Au5ust !) 'FF'Q

$GU 1NSURANCE CORPORAT1ON) petitione%) /s. G.P. SARM1ENTO TRUCJ1NG

CORPORAT1ON an2 LAMBERT M. EROLES) %espon2ents.

E C 1 S 1 O N

>1TUG) ,.8

G.P. Sa%3iento T%uc=in5 Co%po%ation GPS un2e%too= to 2eli/e% on *# ,une *((;

thi%t& F units of Con2u%a S.. :hite %ef%i5e%ato%s aboa%2 one of its 1su4u t%uc=) 2%i/en

b& La3be%t E%oles) f%o3 the plant site of Concepcion 1n2ust%ies) 1nc.) alon5 South

Supe%hi5h:a& in Alaban5) Met%o Manila) to the Cent%al Lu4on Appliances in a5upan

Cit&. Dhile the t%uc= :as t%a/e%sin5 the no%th 2i/e%sion %oa2 alon5 McA%thu% hi5h:a& in

Ba%an5a& Anupol) Ba3ban) Ta%lac) it colli2e2 :ith an uni2entifie2 t%uc=) causin5 it to fall

into a 2eep canal) %esultin5 in 2a3a5e to the ca%5oes.

$GU 1nsu%ance Co%po%ation $GU) an insu%e% of the ship3ent) pai2 to Concepcion

1n2ust%ies) 1nc.) the /alue of the co/e%e2 ca%5oes in the su3 of P'F;);+F.FF. $GU) in

tu%n) bein5 the sub%o5ee of the %i5hts an2 inte%ests of Concepcion 1n2ust%ies) 1nc.) sou5ht

%ei3bu%se3ent of the a3ount it ha2 pai2 to the latte% f%o3 GPS. Since the t%uc=in5


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co3pan& faile2 to hee2 the clai3) $GU file2 a co3plaint fo% 2a3a5es an2 b%each of

cont%act of ca%%ia5e a5ainst GPS an2 its 2%i/e% La3be%t E%oles :ith the Re5ional T%ial

Cou%t) B%anch !!) of Ma=ati Cit&. 1n its ans:e%) %espon2ents asse%te2 that GPS :as the

e


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The subse9uent 3otion fo% %econsi2e%ation ha/in5 been 2enie2)Q ﾧ plaintiff

inte%pose2 an appeal to the Cou%t of Appeals) conten2in5 that the t%ial cou%t ha2 e%%e2 a

in hol2in5 that the appellee co%po%ation :as not a co33on ca%%ie% 2efine2 un2e% the la:

an2 e


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1

D0ET0ER RESPONENT GPS MA7 BE CONS1ERE AS A COMMON

CARR1ER AS E$1NE UNER T0E LAD AN E1ST1NG ,UR1SPRUENCE.

11

D0ET0ER RESPONENT GPS) E1T0ER AS A COMMO

week 2 full cases

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