ACTION FOR DAMAGES

FABRE VS. CA
FACTS:
Engracio Fabre, Jr. and his wife owners of a !"#$ %ode& Ma'da %inib(s)
*he+ (sed *he b(s ,rinci,a&&+ in connec*ion wi*h a b(s ser-ice for schoo&
chi&dren which *he+ o,era*ed in Mani&a) *he+ had a dri-er, .or/rio Cabi&,
who% *he+ hired in !"#!, af*er *r+ing hi% o(* for *wo wee0s) his 1ob was
*o *a0e schoo& chi&dren *o and fro% *he S*. Scho&as*ica2s Co&&ege in Ma&a*e,
Mani&a.
3or&d Chris*ian Fe&&owshi, Inc. arranged wi*h Fabres for
*he *rans,or*a*ion of 44 %e%bers of i*s 5o(ng Ad(&*s Minis*r+ fro%
Mani&a *o 6a 7nion and bac0
7s(a& ro(*e *o Caba, 6a 7nion was *hro(gh Car%en, .angasinan)
howe-er, *he bridge a* Car%en was (nder re,air, so *ha*
,e*i*ioner Cabi& , who was (nfa%i &i ar wi*h *he area 8i* being his
/rs* *ri , *o 6a 7ni on9, was forced *o *a0e a de*o(r *hro(gh *he
*own of :aa+ in 6inga+en, .angasinan) Cabi& ca%e (,on a shar, c(r-e
on *he highwa+, r(nning on a so(*h *o eas* direc*i on, which he
described as ;si e*e)< *he road was s&i ,,er+ beca(se i * was
raining, ca(sing *he b(s, which was r(nning a* *he s,eed of => 0,h, *o
s0id *o *he &ef* road sho(&der) *he b(s hi* *he &ef* *ra?c s*ee& brace and
sign a&ong *he road and ra%%ed *he fence of J es(s Escano, *hen
*(rned o-er and & anded on i*s &ef* side, co%i ng *o a f(& & s*o,
on&+ af*er a series of i%,ac*s
se-era& ,assengers were in1(red) A%+&ine An*onio was *hrown on *he
@oor of *he b(s and,inned down b+ a wooden sea* which ca%e down b+
a wooden sea* which ca%e oA af*erbeing (nscrewed) she is now
s(Aering fro% ,ara,&egia 8*o*a& inabi&i*+ *o %o-e bo*h &egsand (s(a&&+
*he &ower ,ar* of *he *r(n0, of*en as a res(&* of disease or in1(r+ of *he
s,ine9and is ,er%anen*&+ ,ara&+'ed fro% *he wais* down
Cabi&2s answerB he did no* see *he c(r-e (n*i& i* was *oo &a*e) he was no*
fa%i&iar wi*h *hearea and he co(& d no* ha-e seen *he c(r-e
des,i *e *he care he *oo0 in dri-ing *he b(s,beca(se i * was
dar0 and *here was no si gn on *he road) he saw *he c(r-e
when he wasa&read+ wi*hin != *o 4> %e*ers of i*) he a&&eged&+ s&owed
down *o 4> 0i&o%e*ers ,er ho(r,b(* i* was *oo &a*e
ISSUES:
!. 3ON ,e* i * i oner s 8 a. Cabi & ) b. e%,& o+er s Fabr es 9 wer
e neg& i gen* ) $. 3ON,e*i*ioners were &iab&e for *he in1(ries s(Aered
b+ ,ri-a*e res,onden*s
HELD:
!. On Cabi & 2 s neg& i genceB On * he ni gh* of * he
acci den* , i * was r ai ni ng, and as a conseC(ence, *he road was
s&i,,er+, and i* was dar0. Cabi& dro-e his b(s a* *he s,eed of
=>0i&o%e*ers ,er ho(r and on&+ s&owed down when he no*iced *he c(r-e
so%e != *o 4> %e*ersahead. :+ *hen i* was *oo &a*e for hi% *o a-oid
fa&&ing oA *he road. Gi-en *he condi*ions of *he road and considering *ha*
*he *ri, was Cabi&2s /rs* one o(*side of Mani&a Cabi& sho(&d ha-e dri-en
his -ehic&e a* a %odera*e s,eed. There is *es*i%on+ *ha* *he -ehic&es
,assing on *ha* ,or*ion of *he road sho(&d on&+ be r(nning $> 0i&o%e*ers
,er ho(r, so *ha* a* => 0i&o%e*ers ,er ho(r, Cabi& was r(nning a* a -er+
high s,eed.
Considering *he foregoing D *he fac* *ha* i* was raining and *he
road was s&i,,er+, *ha* i* was dar0, *ha* he dro-e his b(s a* =>
0i&o%e*ers an ho(r when e-en on a good da+ *he nor%a& s,eed was on&+
$> 0i&o%e*ers an ho(r, and *ha* he was (nfa%i&iar wi*h *he *errain, Cabi&
was gross&+ neg&igen* and sho(&d be he&d &iab&e for *he in1(ries s(Aered
b+ ,ri-a*e res,onden* A%+&ine An*onio.
.(rs(an* *o Ar*s. $!EF and $!#> of *he Ci-i& Code his neg&igence
ga-e rise *o *he ,res(%,*ion *ha* his e%,&o+ers, *he Fabres, were
*he%se&-es neg&igen* in *he se&ec*ion and s(,er-ision of *heir e%,&o+ee.
D(e di&igence in se&ec*ion of e%,&o+ees is no* sa*is/ed b+ /nding *ha*
*he a,,&ican* ,ossessed a ,rofessiona& dri-er2s &icense. The e%,&o+er
sho(&d a&so eGa%ine *he a,,&ican* for his C(a&i/ca*ions, eG,erience and
record of ser-ice.
H=I
D(e di&igence in s(,er-ision, on *he o*her hand,
reC(ires *he for%(&a*ion of r(&es and reg(&a*ions for *he g(idance of
e%,&o+ees and *he iss(ance of ,ro,er ins*r(c*ions as we&& as ac*(a&
i%,&e%en*a*ion and %oni*oring of consis*en* co%,&iance wi*h *he r(&es.
HFI
In *he case a* bar, *he Fabres, in a&&owing Cabi& *o dri-e *he b(s *o
6a 7nion, a,,aren*&+ did no* consider *he fac* *ha* Cabi& had been
dri-ing for schoo& chi&dren on&+, fro% *heir ho%es *o *he S*. Scho&as*ica2s
Co&&ege in Me*ro Mani&a.
HEI
The+ had hired hi% on&+ af*er a *woJwee0
a,,ren*iceshi,. The+ had *es*ed hi% for cer*ain %a**ers, s(ch as
whe*her he co(&d re%e%ber *he na%es of *he chi&dren he wo(&d be
*a0ing *o schoo&, which were irre&e-an* *o his C(a&i/ca*ion *o dri-e on a
&ong dis*ance *ra-e&, es,ecia&&+ considering *ha* *he *ri, *o 6a 7nion was
his /rs*. The eGis*ence of hiring ,roced(res and s(,er-isor+ ,o&icies
canno* be cas(a&&+ in-o0ed *o o-er*(rn *he ,res(%,*ion of neg&igence
on *he ,ar* of an e%,&o+er.
AIR FRANCE vs. RAFAEL CARRASCOSO
In March !"=#, Rafae& Carrascoso and se-era& o*her Fi&i,inos were
*o(ris*s en ro(*e *o Ro%e fro% Mani&a. Carrascoso was iss(ed a /rs*
c&ass ro(nd *ri, *ic0e* b+ Air France. :(* d(ring a s*o,Jo-er in :ang0o0,
he was as0ed b+ *he ,&ane %anager of Air France *o -aca*e his sea*
beca(se a whi*e %an a&&eged&+ has a ;be**er righ*< *han hi%. Carrascoso
,ro*es*ed b(* when *hings go* hea*ed and (,on ad-ice of o*her Fi&i,inos
on board, Carrascoso ga-e (, his sea* and was *ransferred *o *he
,&ane2s *o(ris* c&ass.
Af*er *heir *o(ris* *ri, when Carrascoso was a&read+ in *he .hi&i,,ines, he
s(ed Air France for da%ages for *he e%barrass%en* he s(Aered d(ring
his *ri,. In co(r*, Carrascoso *es*i/ed, a%ong o*hers, *ha* when he was
forced *o *a0e *he *o(ris* c&ass, he wen* *o *he ,&ane2s ,an*r+ where he
was a,,roached b+ a ,&ane ,(rser who *o&d hi% *ha* he no*ed in *he
,&ane2s 1o(rna& *he fo&&owingB
First-class passenger was forced to go to the tourist class against his
will, and that the captain refused to intervene.
The said *es*i%on+ was ad%i**ed in fa-or of Carrascoso. The *ria& co(r*
e-en*(a&&+ awarded da%ages in fa-or of Carrascoso. This was a?r%ed
b+ *he Co(r* of A,,ea&s.
Air France is assai&ing *he decision of *he *ria& co(r* and *he CA. I* a-ers
*ha* *he iss(ance of a /rs* c&ass *ic0e* *o Carrascoso was no* an
ass(rance *ha* he wi&& be sea*ed in /rs* c&ass beca(se a&&eged&+ in *r(*h
and in fac*, *ha* was no* *he *r(e in*en* be*ween *he ,ar*ies.
Air France a&so C(es*ioned *he ad%issibi&i*+ of Carrascoso2s *es*i%on+
regarding *he no*e %ade b+ *he ,(rser beca(se *he said no*e was ne-er
,resen*ed in co(r*.
ISSUE 1: 3he*her or no* Air France is &iab&e for da%ages and on wha*
basis.
ISSUE 2: 3he*her or no* *he *es*i%on+ of Carrasoso regarding *he no*e
which was no* ,resen*ed in co(r* is ad%issib&e in e-idence.
HELD 1: 5es. I* a,,ears *ha* Air France2s &iabi&i*+ is based on c(&,aJ
con*rac*(a& and on c(&,a aC(i&iana.
Culpa Contractual
There eGis*s a con*rac* of carriage be*ween Air France and Carrascoso.
There was a con*rac* *o f(rnish Carrasocoso a /rs* c&ass
,assage) Second, Tha* said con*rac* was breached when Air France
fai&ed *o f(rnish /rs* c&ass *rans,or*a*ion a* :ang0o0) and Third, *ha*
*here was bad fai*h when Air France2s e%,&o+ee co%,e&&ed Carrascoso
*o &ea-e his /rs* c&ass acco%%oda*ion ber*h after he was already,
seated and *o *a0e a sea* in *he *o(ris* c&ass, b+ reason of which he
s(Aered incon-enience, e%barrass%en*s and h(%i&ia*ions, *hereb+
ca(sing hi% %en*a& ang(ish, serio(s anGie*+, wo(nded fee&ings and
socia& h(%i&ia*ion, res(&*ing in %ora& da%ages.
The S(,re%e Co(r* did no* gi-e credence *o Air France2s c&ai% *ha* *he
iss(ance of a /rs* c&ass *ic0e* *o a ,assenger is no* an ass(rance *ha* he
wi&& be gi-en a /rs* c&ass sea*. S(ch c&ai% is si%,&+ incredib&e.
Culpa Aquiliana
Kere, *he SC r(&ed, e-en *ho(gh *here is a con*rac* of carriage be*ween
Air France and Carrascoso, *here is a&so a *or*io(s ac* based on c(&,a
aC(i&iana. .assengers do no* con*rac* %ere&+ for *rans,or*a*ion. The+
ha-e a righ* *o be *rea*ed b+ *he carrier2s e%,&o+ees wi*h 0indness,
res,ec*, co(r*es+ and d(e considera*ion. The+ are en*i*&ed *o be
,ro*ec*ed agains* ,ersona& %iscond(c*, in1(rio(s &ang(age, indigni*ies
and ab(ses fro% s(ch e%,&o+ees. So i* is, *ha* an+ r(&e or disco(r*eo(s
cond(c* on *he ,ar* of e%,&o+ees *owards a ,assenger gi-es *he &a**er
an ac*ion for da%ages agains* *he carrier. Air France2s con*rac* wi*h
Carrascoso is one a**ended wi*h ,(b&ic d(*+. The s*ress of Carrascoso2s
ac*ion is ,&aced (,on his wrongf(& eG,(&sion. This is a -io&a*ion of ,(b&ic
d(*+ b+ *he Air France L a case of C(asiJde&ic*. Da%ages are ,ro,er.
HELD: 2: 5es. The *es*i%on+ of Carrascoso %(s* be ad%i**ed based on
res ges*ae. The s(b1ec* of inC(ir+ is no* *he en*r+, b(* *he o(s*er
inciden*. Tes*i%on+ on *he en*r+ does no* co%e wi*hin *he ,roscri,*ion
of *he bes* e-idence r(&e. S(ch *es*i%on+ is ad%issib&e.

:esides, when
*he dia&og(e be*ween Carrascoso and *he ,(rser ha,,ened, *he i%,ac*
of *he s*ar*&ing occ(rrence was s*i&& fresh and con*in(ed *o be fe&*. The
eGci*e%en* had no* as +e* died down. S*a*e%en*s *hen, in *his
en-iron%en*, are ad%issib&e as ,ar* of *he res gestae. The (**erance of
*he ,(rser regarding his en*r+ in *he no*eboo0 was s,on*aneo(s, and
re&a*ed *o *he circ(%s*ances of *he o(s*er inciden*. I*s *r(s*wor*hiness
has been g(aran*eed. I* *h(s esca,es *he o,era*ion of *he hearsa+ r(&e.
I* for%s ,ar* of *he res ges*ae.
TIU vs. ARRIESGADO
FACTSB A cargo *r(c0 was &oaded wi*h /rewood in :ogo, Ceb( and &ef*
for Ceb( Ci*+. 7,on reaching Si*io Aggies, .ob&acion, Co%,os*e&a, Ceb(,
1(s* as *he *r(c0 ,assed o-er a bridge, one of i*s rear *ires eG,&oded. The
dri-er, Sergio .edrano, *hen ,ar0ed a&ong *he righ* side of *he na*iona&
highwa+ and re%o-ed *he da%aged *ire *o ha-e i* -(&cani'ed a* a
nearb+ sho,, abo(* E>> %e*ers awa+. .edrano &ef* his he&,er *o 0ee,
wa*ch o-er *he s*a&&ed -ehic&e, and ins*r(c*ed *he &a**er *o ,&ace a s,are
*ire siG fa*ho%s awa+ behind *he s*a&&ed *r(c0 *o ser-e as a warning for
onco%ing -ehic&es. The *r(c02s *ai& &igh*s were a&so &ef* on.
A* abo(* MBM= a.%., D2 Ro(gh Riders ,assenger b(s dri-en b+
Nirgi&io Te 6as,iOas was cr(ising a&ong *he sa%e highwa+. The ,assenger
b(s was a&so bo(nd for Ceb( Ci*+. A%ong i*s ,assengers were *he
S,o(ses Arriesgado, who were sea*ed a* *he righ* side of *he b(s, abo(*
*hree 849 or fo(r 8M9 ,&aces fro% *he fron* sea*.
As *he b(s was a,,roaching *he bridge, 6as,iOas saw *he s*a&&ed
*r(c0, which was *hen abo(* $= %e*ers awa+. Ke a,,&ied *he bra0es and
*ried *o swer-e *o *he &ef* *o a-oid hi**ing *he *r(c0. :(* i* was *oo &a*e)
*he b(s ra%%ed in*o *he *r(c02s &ef* rear. The i%,ac* da%aged *he righ*
side of *he b(s and &ef* se-era& ,assengers in1(red. .edro Arriesgado &os*
conscio(sness and s(Aered a frac*(re in his righ* co&&es. Kis wife died.
Res,onden* .edro A. Arriesgado *hen /&ed a co%,&ain* for breach of
con*rac* of carriage, da%ages and a**orne+2s agains* *he ,e*i*ioners, D2
Ro(gh Riders b(s o,era*or 3i&&ia% Ti( and his dri-er, Nirgi&io Te 6as,iOas
.The res,onden* a&&eged *ha* *he ,assenger b(s in C(es*ion was cr(ising
a* a fas* and high s,eed a&ong *he na*iona& road, and *ha* ,e*i*ioner
6as,iOas did no* *a0e ,reca(*ionar+ %eas(res *o a-oid *he acciden*.
The ,e*i*ioners, for *heir ,ar*, /&ed a ThirdJ.ar*+ Co%,&ain* agains*
*he fo&&owingB res,onden* .hi&i,,ine .hoeniG S(re*+ and Ins(rance, Inc.
8..SII9, ,e*i*ioner Ti(2s ins(rer) res,onden* :en1a%in Condor, *he
regis*ered owner of *he cargo *r(c0) and res,onden* Sergio .edrano, *he
dri-er of *he *r(c0. The+ a&&eged *ha* ,e*i*ioner 6as,iOas was
nego*ia*ing *he (,hi&& c&i%b a&ong *he na*iona& highwa+ of Sitio Aggies,
.ob&acion, Co%,os*e&a, in a %odera*e and nor%a& s,eed. I* was f(r*her
a&&eged *ha* *he *r(c0 was ,ar0ed in a s&an*ed %anner, i*s rear ,or*ion
a&%os* in *he %idd&e of *he highwa+, and *ha* no ear&+ warning de-ice
was dis,&a+ed. .e*i*ioner 6as,iOas ,ro%,*&+ a,,&ied *he bra0es and
swer-ed *o *he &ef* *o a-oid hi**ing *he *r(c0 headJon, b(* des,i*e his
eAor*s *o a-oid da%age *o ,ro,er*+ and ,h+sica& in1(ries on *he
,assengers, *he righ* side ,or*ion of *he b(s hi* *he cargo *r(c02s &ef*
rear.
ISSUES:
!. 3ON 6as,inas is neg&igen* in dri-ing *he b(sP
$. 3ON .e*i*ioner Ti( fai&ed *o o-erco%e *he ,res(%,*ion of neg&igence
agains* hi% as one engaged in *he b(siness of co%%on carriageP
4. 3ON doc*rine of &as* c&ear chance is a,,&icab&eP
HELD:
!. E-en in *he absence of eG,er* e-idence, *he da%age s(s*ained
b+ *he *r(c0 i*se&f s(,,or*s *he /nding of bo*h *he *ria& co(r*
and *he a,,e&&a*e co(r*, *ha* *he D2 Ro(gh Rider b(s dri-en b+
,e*i*ioner 6as,iOas was *ra-e&ing a* a fas* ,ace. Since he saw
*he s*a&&ed *r(c0 a* a dis*ance of $= %e*ers, ,e*i*ioner 6as,iOas
had %ore *han eno(gh *i%e *o swer-e *o his &ef* *o a-oid hi**ing
i*) *ha* is, if *he s,eed of *he b(s was on&+ M> *o => 0i&o%e*ers
,er ho(r as he c&ai%ed. As fo(nd b+ *he Co(r* of A,,ea&s, i* is
easier *o be&ie-e *ha* ,e*i*ioner 6as,iOas was dri-ing a* a -er+
fas* s,eed, since a* MBM= a.%., *he ho(r of *he acciden*, *here
were no onco%ing -ehic&es a* *he o,,osi*e direc*ion. .e*i*ioner
6as,iOas co(&d ha-e swer-ed *o *he &ef* &ane wi*h ,ro,er
c&earance, and, *h(s, co(&d ha-e -oided *he *r(c0. Ins*inc*, a*
*he -er+ &eas*, wo(&d ha-e ,ro%,*ed hi% *o a,,&+ *he bra0es *o
a-er* *he i%,ending disas*er which he %(s* ha-e foreseen
when he ca(gh* sigh* of *he s*a&&ed *r(c0.
$. 3hi&e e-idence %a+ be s(b%i**ed *o o-erco%e s(ch
,res(%,*ion of neg&igence, i* %(s* be shown *ha* *he carrier
obser-ed *he reC(ired eG*raordinar+ di&igence, which %eans
*ha* *he carrier %(s* show *he (*%os* di&igence of -er+ ca(*io(s
,ersons as far as h(%an care and foresigh* can ,ro-ide, or *ha*
*he acciden* was ca(sed b+ for*(i*o(s e-en*.
HM!I
As correc*&+
fo(nd b+ *he *ria& co(r*, ,e*i*ioner Ti( fai&ed *o conc&(si-e&+
reb(* s(ch ,res(%,*ion. The neg&igence of ,e*i*ioner 6as,iOas
as dri-er of *he ,assenger b(s is, *h(s, binding agains*
,e*i*ioner Ti(, as *he owner of *he ,assenger b(s engaged as a
co%%on carrier.
4. Con*rar+ *o *he ,e*i*ionerQs con*en*ion, *he ,rinci,&e of
&as* c&ear chance is ina,,&icab&e in *he ins*an* case, as i* on&+
a,,&ies in a s(i* be*ween *he owners and dri-ers of *wo
co&&iding
-ehic&es. I* does no* arise where *he ,assenger de%ands
res,onsibi&i*+ fro% *he carrier *o enforce i*s con*rac*(a&
ob&iga*ions, for i* wo(&d be ineC(i*ab&e *o eGe%,* *he neg&igen*
dri-er and i*s owner on *he gro(nd *ha* *he o*her dri-er was
&i0ewise g(i&*+ neg&igence. The co%%on &aw no*ion of &as* c&ear
chance ,er%i**ed co(r*s *o gran* reco-er+ *o a ,&ain*iA who
has
a&so been neg&igen* ,ro-ided *ha* *he defendan* had *he &as*
c&ear
chance *o a-oid *he cas(a&*+ and fai&ed *o do so.
PAGIC vs. SWEET LINES
FACTS:
A *o*a& E,>>> bags of &ow densi*+ ,o&+e*h+&ene 8F>> bags of ,o&+e*h+&ene
FM! and F,M>> bags of ,o&+e*h+&ene FME9 were shi,,ed fro% :a*on
Ro(ge, 6A *o Mani&a on board SS Nish-a 5ash, a -esse& be&onging *o *he
Shi,,ing Cor,ora*ion of India 8SCI9. Fro% Mani&a, *he cargoes were
shi,,ed *o Da-ao on board MN Swee* 6o-e, a -esse& owned b+ Swee*
6ines. The consignee was Far Eas* :an0 wi*h arri-a& no*ice *o Tag(%
.&as*ics, Inc., Tag(%, Da-ao Ci*+. The cargoes were ins(red b+ Far Eas*
:an0 wi*h *he .hi&i,,ine A%erican Genera& Ins(rance Co 8.hi&a%gen9
and were co-ered b+ bi&&s of &ading which con*ained *he fo&&owing
s*i,(&a*ion in ,aragra,h =B
C&ai%s for shor*age, da%age, %(s* be %ade a* *he *i%e
of de&i-er+ *o consignee or agen*, if con*ainer shows
eG*erior signs of da%age or shor*age. C&ai%s for nonJ
de&i-er+, %isde&i-er+, &oss or da%age %(s* be /&ed
wi*hin 4> da+s fro% accr(a&. S(i*s arising fro% shor*age,
da%age or &oss, nonJde&i-er+ or %isde&i-er+ sha&& be
ins*i*(*ed wi*hin F> da+s fro% da*e of accr(a& of righ* of
ac*ion. Fai&(re *o /&e c&ai%s or ins*i*(*e 1(dicia&
,roceedings as herein ,ro-ided cons*i*(*es wai-er of
c&ai% or righ* of ac*ion. In no case sha&& carrier be &iab&e
for an+ de&a+, nonJde&i-er+, %isde&i-er+, &oss of da%age
*o cargo whi&e cargo is no* in ac*(a& c(s*od+ of carrier.
On Ma+ !=, !"EE, *he shi,%en*8s9 were discharged fro% *he in*eris&and
carrier in*o *he c(s*od+ of *he consignee. A s(r-e+ cond(c*ed on J(&+ #,
!"EE showed *ha* of *he shi,%en* *o*a&&ing E,>>> bags, origina&&+
con*ained in !E= ,a&&e*s, on&+ a *o*a& of =,#$> bags were de&i-ered *o *he
consignee in good order condi*ion, &ea-ing a ba&ance of !,>#> bags.
So%e of *he !,>#> bags were ei*her MISSING OR DAMAGED be+ond *he
,oin* of being (sef(& for *he in*ended ,(r,ose.
FE:TC and Tag(% .&as*ics s(ed *he in*erna*iona& carrier, SCI, *he in*erJ
is&and carriers, Swee* 6ines, *he arras*re co%,an+, Da-ao Arras*re and
FE R(e&&ig 8which I ass(%e is *he shi,,er9. :efore *ria&, a co%,ro%ise
agree%en* was en*ered in*o be*ween *he co%,&ainan*s and SCI and F.E.
R(e&&ig, *h(s, on&+ Swee* 6ines and Da-ao Arras*re re%ained as
defendan*s.
The *ria& co(r* r(&ed in fa-o(r of .hi&a%gen and Tag(% .&as*ics. The CA
re-ersed on *he gro(nd of ,rescri,*ion and denied *he %o*ion for
reconsidera*ion.
ISSUES:
8!9 3as *here a ,rescri,*i-e ,eriodP
8$9 If +es, was *he ,rescri,*i-e ,eriod -a&id and &ega&P
849 If i* was -a&id and &ega&, did .hi&a%gen ac* wi*hin *he ,rescri,*i-e
,eriodP
RULING:
8!9 5es. There was a ,rescri,*i-e ,eriod. 3hen *he co%,&ain* was /&ed,
,rescri,*ion as an a?r%a*i-e defense was seasonab&+ raised b+ Swee*
6ines in i*s answer. Tho(gh *he bi&&s of &ading were no* ,resen*ed in
e-idence, *he SC said *ha*B ;As ,e*i*ioners are s(ing (,on S6IQs
con*rac*(a& ob&iga*ion (nder *he con*rac* of carriage as con*ained in *he
bi&&s of &ading, s(ch bi&&s of &ading can be ca*egori'ed as ac*ionab&e
doc(%en*s which (nder *he R(&es %(s* be ,ro,er&+ ,&eaded ei*her as
ca(ses of ac*ion or defenses, and *he gen(ineness and d(e eGec(*ion of
which are dee%ed ad%i**ed (n&ess s,eci/ca&&+ denied (nder oa*h b+ *he
ad-erse ,ar*+. The r(&es on ac*ionab&e doc(%en*s co-er and a,,&+ *o
bo*h a ca(se of ac*ion or defense based on said doc(%en*s.< In *heir
answer, Swee* 6ines inc&(ded *he ,rescri,*i-e ,eriod (nder ,aragra,h =
of *he bi&&s of &ading. .hi&a%gen did no* den+ *he eGis*ence of *he bi&& of
&ading (nder oa*h. Ins*ead, in i*s re,&+ *o *he answer, .hi&a%gen
asser*ed *ha* *he bi&&s of &ading were con*rac*s of adhesion and *ha* s(ch
,ro-isions were ;con*rar+ *o &aw and ,(b&ic ,o&ic+< and *h(s, Swee*
6ines canno* a-ai& of s(ch ,rescri,*i-e ,eriod as a -a&id defense. The SC
said *ha* .hi&a%gen2s fai&(re *o den+ (nder oa*h *he eGis*ence of *he
bi&&s of &ading was *an*a%o(n* *o an ad%ission of i*s eGis*ence, *oge*her
wi*h ,aragra,h = con*aining *he ,rescri,*i-e ,eriod. Th(s, *he eGis*ence
of *he ,rescri,*i-e ,eriod was d(&+ ,ro-ed e-en if *he bi&&s of &ading were
no* ,resen*ed in co(r*.
8$9 5es. The ,rescri,*i-e ,eriods were -a&id and &ega&. .hi&a%gen insis*s
*ha* *he bi&&s of &ading were con*rac*s of adhesion and *ha* *he
,rescri,*i-e ,eriods s*a*ed *herein were -oid for being con*rar+ *o &aw
and ,(b&ic ,o&ic+. The SC, ci*ing ng !u vs CA, said ;*ha* con*rac*s of
adhesion are no* en*ire&+ ,rohibi*ed. The one who adheres *o *he
con*rac* is in rea&i*+ free *o re1ec* i* en*ire&+) if he adheres he gi-es his
consen*.< .hi&a%gen, *h(s, ga-e i*s consen* *o *he con*rac*s *he bi&&s
of &ading inc&(ding consen* *o *he ,rescri,*i-e ,eriods *herein. The SC
a&so agreed wi*h *he CA *ha* ,ar*ies can s*i,(&a*e a shor*er ,rescri,*i-e
,eriod for *he /&ing of s(i*s. The SC C(o*ed *he CA, ;I* %(s* be no*ed, a*
*his 1(nc*(re, *ha* *he afores*a*ed *i%e &i%i*a*ion 8,aragra,h =9 in *he
,resen*a*ion of c&ai% for &oss or da%age, is b(* a res*a*e%en* of *he r(&e
,rescribed (nder Ar*. 4FF of *he Code of Co%%erce... < The SC said
*ha*, ;... *he -a&idi*+ of a con*rac*(a& &i%i*a*ion of *i%e for /&ing *he s(i*
i*se&f agains* a carrier shor*er *han *he s*a*(*or+ ,eriod *herefor has
genera&&+ been (,he&d as s(ch s*i,(&a*ion %ere&+ aAec*s *he shi,,erQs
re%ed+ and does no* aAec* *he &iabi&i*+ of *he carrier. In *he absence of
an+ s*a*(*or+ &i%i*a*ion and s(b1ec* on&+ *o *he reC(ire%en* on *he
reasonab&eness of *he s*i,(&a*ed &i%i*a*ion ,eriod, *he ,ar*ies *o a
con*rac* of carriage %a+ /G b+ agree%en* a shor*er *i%e for *he
bringing of s(i* on a c&ai% for *he &oss of or da%age *o *he shi,%en*
*han *ha* ,ro-ided b+ *he s*a*(*e of &i%i*a*ions. S(ch &i%i*a*ion is no*
con*rar+ *o ,(b&ic ,o&ic+ for i* does no* in an+ wa+ defea* *he co%,&e*e
-es*i*(re of *he righ* *o reco-er, b(* %ere&+ reC(ires *he asser*ion of *ha*
righ* b+ ac*ion a* an ear&ier ,eriod *han wo(&d be necessar+ *o defea* i*
*hro(gh *he o,era*ion of *he ordinar+ s*a*(*e of &i%i*a*ions.< The SC a&so
said *ha*, ;..., *he shor*ened ,eriod for /&ing s(i* is no* (nreasonab&e and
has in fac* been genera&&+ recogni'ed *o be a -a&id b(siness ,rac*ice in
*he shi,,ing ind(s*r+.< This is in recogni*ion of *he inheren* dangers of
carriage b+ sea.
849 No. .hi&a%gen did no* ac* wi*hin *he ,rescri,*i-e ,eriod. The
shi,%en* was discharged in*o *he c(s*od+ of *he consignee on Ma+ !=,
!"EE, and i* was fro% *his da*e *ha* ,e*i*ionersQ ca(se of ac*ion accr(ed,
wi*h *hir*+ 84>9 da+s *herefro% wi*hin which *o /&e a c&ai% wi*h *he
carrier for an+ &oss or da%age which %a+ ha-e been s(Aered b+ *he
cargo and *hereb+ ,erfec* *heir righ* of ac*ion. C&ai% was /&ed on&+ on
A,ri& $#, !"E#, wa+ be+ond *he ,eriod ,ro-ided in *he bi&&s of &ading and
-io&a*i-e of *he con*rac*(a& ,ro-ision, *he ine-i*ab&e conseC(ence of
which is *he &oss of ,e*i*ionersQ re%ed+ or righ* *o s(e. The SC said,
;E-en *he /&ing of *he co%,&ain* on Ma+ !$, !"E# is of no re%edia& or
,rac*ica& conseC(ence, since *he *i%e &i%i*s for *he /&ing *hereof,
whe*her -iewed as a condi*ion ,receden* or as a ,rescri,*i-e ,eriod,
wo(&d in *his case be ,rod(c*i-e of *he sa%e res(&*, *ha* is, *ha*
,e*i*ioners had no righ* of ac*ion *o begin wi*h or, a* an+ ra*e, *heir
c&ai% was *i%eJbarred.<
O*her *hings disc(ssed b+ *he SCB
!. ;...where *he con*rac* of shi,%en* con*ains a reasonab&e reC(ire%en*
of gi-ing no*ice of &oss of or in1(r+ *o *he goods, *he gi-ing of s(ch no*ice
is a condi*ion ,receden* *o *he ac*ion for &oss or in1(r+ or *he righ* *o
enforce *he carrierQs &iabi&i*+. S(ch reC(ire%en* is no* an e%,*+
for%a&is%. The f(nda%en*a& reason or ,(r,ose of s(ch a s*i,(&a*ion is
no* *o re&ie-e *he carrier fro% 1(s* &iabi&i*+, b(* reasonab&+ *o infor% i*
*ha* *he shi,%en* has been da%aged and *ha* i* is charged wi*h &iabi&i*+
*herefor, and *o gi-e i* an o,,or*(ni*+ *o eGa%ine *he na*(re and eG*en*
of *he in1(r+. This ,ro*ec*s *he carrier b+ aAording i* an o,,or*(ni*+ *o
%a0e an in-es*iga*ion of a c&ai% whi&e *he %a**er is fresh and easi&+
in-es*iga*ed so as *o safeg(ard i*se&f fro% fa&se and fra(d(&en* c&ai%s.<
$. .hi&a%gen a&so asser*ed *ha* since *he ,(r,ose of *he no*ice of c&ai%
or &oss was *o charge Swee* 6ines wi*h ac*(a& 0now&edge of *he &oss and
da%age in-o&-ed, *hen *he iss(ance of Swee* 6ines of a ;Re,or* on
6osses and Da%age< da*ed Ma+ !=, !"EE, ;wo(&d ob-ia*e *he need for
or render s(,er@(o(s *he /&ing of a c&ai% wi*hin *he s*i,(&a*ed ,eriod.<
The SC said, ;The re,or* on &osses and da%ages is no* *he c&ai% referred
*o and reC(ired b+ *he bi&&s of &ading for i* does no* /G res,onsibi&i*+ for
*he &oss or da%age, b(* %ere&+ s*a*es *he condi*ion of *he goods
shi,,ed. The c&ai% con*e%,&a*ed herein, in wha*e-er for%, %(s* be
so%e*hing %ore *han a no*ice *ha* *he goods ha-e been &os* or
da%aged) i* %(s* con*ain a c&ai% for co%,ensa*ion or indica*e an in*en*
*o c&ai%.< F(r*her%ore, *he re,or* bears an anno*a*ion a* i*s &ower ,ar*
*ha* sa+s ;*his Co,+ sho(&d be s(b%i**ed *oge*her wi*h +o(r c&ai%
in-oice or recei,* wi*hin 4> da+s fro% da*e of iss(e o*herwise +o(r c&ai%
wi&& no* be honored.S
4. The c&ai% agains* *he carrier, Swee* 6ines, has ,rescribed b(* wha*
abo(* *he c&ai% agains* Da-ao Arras*re. The SC said *ha* *here was no*
eno(gh ,roof *o ,in,oin* *he ,ar*+ res,onsib&e for *he &os* and da%aged
bags. 83ha* I fo(nd s(r,rising was *ha* *he SC a&so said, ;7n&i0e a
co%%on carrier, an arras*re o,era*or does no* &abor (nder a
,res(%,*ion of neg&igence in case of &oss, des*r(c*ion or de*eriora*ion of
goods discharged in*o i*s c(s*od+. In o*her words, *o ho&d an arras*re
o,era*or &iab&e for &oss of andTor da%age *o goods en*r(s*ed *o i* *here
%(s* be ,re,onderan* e-idence *ha* i* did no* eGercise d(e di&igence in
*he hand&ing and care of *he goods.<
DOLE vs. MARITIME COMPANY OF THE PHILS
FACTS:
!. The cargo s(b1ec* of *he ins*an* case was discharged in Dadiangas
(n*o *he c(s*od+ of *he consignee on Dece%ber !#, !"E!)
$. The corres,onding c&ai% for *he da%ages s(s*ained b+ *he cargo was
/&ed b+ *he ,&ain*iA wi*h *he defendan* -esse& on Ma+ M, !"E$)
4. On J(ne !!, !"E4 *he ,&ain*iA /&ed a co%,&ain* in *he Co(r* of Firs*
Ins*ance of Mani&a, doc0e*ed *herein as Ci-i& Case No. "!>M4, e%bod+ing
*hree 849 ca(ses of ac*ion in-o&-ing *hree 849 se,ara*e and diAeren*
shi,%en*s. The *hird ca(se of ac*ion *herein in-o&-ed *he cargo now
s(b1ec* of *his ,resen* &i*iga*ion)
M. On Dece%ber !!, !"EM, J(dge Sera/n C(e-as iss(ed an Order in Ci-i&
Case No. "!>M4 dis%issing *he /rs* *wo ca(ses of ac*ion in *he aforesaid
case wi*h ,re1(dice and wi*ho(* ,rono(nce%en* as *o cos*s beca(se *he
,ar*ies had se**&ed or co%,ro%ised *he c&ai%s in-o&-ed *herein. The
*hird ca(se of ac*ion which co-ered *he cargo s(b1ec* of *his case now
was &i0ewise dis%issed b(* wi*ho(* ,re1(dice as i* was no* co-ered b+
*he se**&e%en*. The dis%issa& of *ha* co%,&ain* con*aining *he *hree
ca(ses of ac*ion was (,on a 1oin* %o*ion *o dis%iss /&ed b+ *he ,ar*ies)
=. :eca(se of *he dis%issa& of *he 8co%,&ain* in Ci-i& Case No. "!>M4
wi*h res,ec* *o *he *hird ca(se of ac*ion wi*ho(* ,re1(dice, ,&ain*iA
ins*i*(*ed *his ,resen* co%,&ain* on Jan(ar+ F, !"E=.
To *he co%,&ain* in *he s(bseC(en* ac*ion Mari*i%e /&ed an answer
,&eading inter alia *he a?r%a*i-e defense of ,rescri,*ion (nder *he
,ro-isions of *he Carriage of Goods b+ Sea Ac*, and fo&&owing ,reJ*ria&,
%o-ed for a ,re&i%inar+ hearing on said defense. The Tria& Co(r*
gran*ed *he %o*ion, sched(&ing *he ,re&i%inar+ hearing on A,ri& $E,
!"EE.
7
The record before *he Co(r* does no* show whe*her or no* *ha*
hearing was he&d, b(* (nder da*e of Ma+ F, !"EE, Mari*i%e /&ed a for%a&
%o*ion *o dis%iss in-o0ing once %ore *he gro(nd of ,rescri,*ion. The
%o*ion was o,,osed b+ Do&e and *he Tria& Co(r*, af*er d(e considera*ion,
reso&-ed *he %a**er in fa-or of Mari*i%e and dis%issed *he
co%,&ain* Do&e so(gh* a reconsidera*ion, which was denied,
11
and
*hereaf*er *oo0 *he ,resen* a,,ea& fro% *he order of dis%issa&.
ISSUE: Is Ar*. !!== of *he Ci-i& Code ,ro-iding *ha* *he ,rescri,*ion of
ac*ions is in*err(,*ed b+ *he %a0ing of an eG*ra1(dicia& wri**en de%and
b+ *he credi*or a,,&icab&e a&so *o ac*ions bro(gh* (nder *he COGSAP
KE6DB
Do&e concedes *ha* i*s ac*ion is s(b1ec* *o *he oneJ+ear ,eriod of
&i%i*a*ion ,rescribe in *he abo-eJci*ed ,ro-ision.
12
The s(bs*ance of i*s
arg(%en* is *ha* since *he ,ro-isions of *he Ci-i& Code are, b+ eG,ress
%anda*e of said Code, s(,,&e*or+ of de/ciencies in *he Code of
Co%%erce and s,ecia& &aws in %a**ers go-erned b+ *he &a**er,
13
and
*here being SUUU a ,a*en* de/cienc+ UUU wi*h res,ec* *o *he *o&&ing of *he
,rescri,*i-e ,eriod UUUS ,ro-ided for in *he Carriage of Goods b+ Sea
Ac*,
14
,rescri,*ion (nder said Ac* is s(b1ec* *o *he ,ro-isions of Ar*ic&e
!!== of *he Ci-i& Code on *o&&ing and beca(se Do&eQs c&ai% for &oss or
da%age %ade on Ma+ M, !"E$ a%o(n*ed *o a wri**en eG*ra1(dicia&
de%and which wo(&d *o&& or in*err(,* ,rescri,*ion (nder Ar*ic&e !!==, i*
o,era*ed *o *o&& ,rescri,*ion a&so in ac*ions (nder *he Carriage of Goods
b+ Sea Ac*. To %(ch *he sa%e eAec* is *he f(r*her arg(%en* based on
Ar*ic&e !!EF of *he Ci-i& Code which ,ro-ides *ha* *he righ*s and
ob&iga*ions of co%%on carriers shag be go-erned b+ *he Code of
Co%%erce and b+ s,ecia& &aws in a&& %a**ers no* reg(&a*ed b+ *he Ci-i&
Code.
These arg(%en*s %igh* %eri* weigh*ier considera*ion were i* no* for *he
fac* *ha* *he C(es*ion has a&read+ recei-ed a de/ni*i-e answer, ad-erse
*o *he ,osi*ion *a0en b+ Do&e, in The 5e0 Tong 6in Fire V Marine
Ins(rance Co., 6*d. -s. A%erican .residen* 6ines, Inc.
1
There, in a
,ara&&e& fac*(a& si*(a*ion, where s(i* *o reco-er for da%age *o cargo
shi,,ed b+ -esse& fro% To0+o *o Mani&a was /&ed %ore *han *wo +ears
af*er *he consigneeQs recei,* of *he cargo, *his Co(r* re1ec*ed *he
con*en*ion *ha* an eG*ra1(dicia& de%and *oi&ed *he ,rescri,*i-e ,eriod
,ro-ided for in *he Carriage of Goods b+ Sea Ac*, -i'B
In *he second assign%en* of error ,&ain*iAJa,,e&&an* arg(es *ha* i*
was error for *he co(r* a quo no* *o ha-e considered *he ac*ion of
,&ain*iAJa,,e&&an* s(s,ended b+ *he eG*ra1(dicia& de%and which *oo0
,&ace, according *o defendan*Qs own %o*ion *o dis%iss on A(g(s* $$,
!"=$. 3e no*ice *ha* whi&e ,&ain*iA a-oids s*a*ing an+ da*e when *he
goods arri-ed in Mani&a, i* re&ies (,on *he a&&ega*ion %ade in *he
%o*ion *o dis%iss *ha* a ,ro*es* was /&ed on A(g(s* $$, !"=$ L
which goes *o show *ha* ,&ain*iAJa,,e&&an*Qs co(nse& has no* been
&a+ing *he fac*s sC(are&+ before *he co(r* for *he considera*ion of *he
%eri*s of *he case. 3e ha-e a&read+ decided *ha* in a case go-erned
b+ *he Carriage of Goods b+ Sea Ac*, *he genera& ,ro-isions of *he
Code of Ci-i& .roced(re on ,rescri,*ion sho(&d no* be %ade *o a,,&+.
8Ch(a W(+ -s. E-ere** S*ea%shi, Cor,., G.R. No. 6J===M, Ma+ $E,
!"=4.9 Si%i&ar&+, we now ho&d *ha* in s(ch a case *he genera&
,ro-isions of *he new Ci-i& Code 8Ar*. !!==9 canno* be %ade *o a,,&+,
as s(ch a,,&ica*ion wo(&d ha-e *he eAec* of eG*ending *he oneJ+ear
,eriod of ,rescri,*ion /Ged in *he &aw. I* is desirab&e *ha* %a**ers
aAec*ing *rans,or*a*ion of goods b+ sea be decided in as shor* a *i%e
as ,ossib&e) *he a,,&ica*ion of *he ,ro-isions of Ar*ic&e !!== of *he
new Ci-i& Code wo(&d (nnecessari&+ eG*end *he ,eriod and ,er%i*
de&a+s in *he se**&e%en* of C(es*ions aAec*ing *rans,or*a*ion,
con*rar+ *o *he c&ear in*en* and ,(r,ose of *he &aw. U U U
Moreo-er, no diAeren* res(&* wo(&d ob*ain e-en if *he Co(r* were *o
acce,* *he ,ro,osi*ion *ha* a wri**en eG*ra1(dicia& de%and does *o&&
,rescri,*ion (nder *he Carriage of Goods b+ Sea Ac*. The de%and in *his
ins*ance wo(&d be *he c&ai% for da%ageJ/&ed b+ Do&e wi*h Mari*i%e on
Ma+ M, !"E$. The eAec* of *ha* de%and wo(&d ha-e been *o renew *he
oneJ +ear ,rescri,*i-e ,eriod fro% *he da*e of i*s %a0ing. S*a*ed
o*herwise, (nder Do&eQs *heor+, when i*s c&ai% was recei-ed b+
Mari*i%e, *he oneJ+ear ,rescri,*i-e ,eriod was in*err(,*ed L S*o&&edS
wo(&d be *he %ore ,recise *er% L and began *o r(n anew fro% Ma+ M,
!"E$, aAording Do&e ano*her ,eriod of one 8!9 +ear co(n*ed fro% *ha*
da*e wi*hin which *o ins*i*(*e ac*ion on i*s c&ai% for da%age.
7nfor*(na*e&+, Do&e &e* *he new ,eriod &a,se wi*ho(* /&ing ac*ion. I*
ins*i*(*ed Ci-i& Case No. "!>M4 on&+ on J(ne !!, !"E4, %ore *han one
%on*h af*er *ha* ,eriod has eG,ired and i*s righ* of ac*ion had
,rescribed.
MARITIME AGENCIES ! SERVICES VS. CA "GR 77#3$% 12 &ULY
1''()
Fac*sB
Transcon*inen*a& Fer*i&i'er Co%,an+ of 6ondon char*ered fro% Kong0ong
*he %o*or -esse& na%ed ;Kong0ong Is&and< for *he shi,%en* of #>E4.4=
MT 8gross9 bagged (rea fro% No-orossis0, Odessa, 7SSR, *o *he
.hi&i,,ines, *he ,ar*ies signing for *his ,(r,ose a 7nifor% Genera&
Char*er da*ed " A(g(s* !"E". Of *he *o*a& shi,%en*, =,M>>.>M MT was
for *he acco(n* of A*&as Fer*i&i'er Co%,an+ as consignee, 4,M>>.>M *o be
discharged in Mani&a and *he re%aining $,>>> MT in Ceb(. The goods
were ins(red b+ *he consignee wi*h *he 7nion Ins(rance Socie*+ of
Can*on, 6*d. for .F,EE",$!M.>> agains* a&& ris0s. Mari*i%e Agencies V
Ser-ices,Inc. was a,,oin*ed as *he char*erer2s agen* and Macondra+
Co%,an+, Inc. as *he owner2s agen*. The -esse& arri-ed in Mani&a on 4
Oc*ober !"E", and (n&oaded ,ar* of *he consignee2s goods, *hen
,roceeded *o Ceb( on!" Oc*ober !"E", *o discharge *he res* of *he
cargo. On 4! Oc*ober !"E", *he consignee /&ed a for%a& c&ai% agains*
Mari*i%e, co,+ f(rnished Macondra+, for *he a%o(n* of .#E,!F4.=M,
re,resen*ing C V F -a&(e of *he !,4#4 shor* &anded bags. On !$ Jan(ar+
!"#>, *he consignee /&ed ano*her for%a& c&ai%, *his *i%e agains* Ni-a
C(s*o%s :ro0erage, for *he a%o(n* of .4F,>4>.$4, re,resen*ing *he
-a&(e of =EM bags of ne* (nreco-ered s,i&&age. These c&ai%s ha-ing been
re1ec*ed, *he consignee *hen wen* *o 7nion, which on de%and ,aid *he
*o*a& inde%ni*+ of .!!4,!$4.#F ,(rs(an* *o *he ins(rance con*rac*. As
s(brogee of *he consignee, 7nion *hen /&ed on !" Se,*e%ber !"#>, a
co%,&ain* for rei%b(rse%en* of *his a%o(n*, wi*h &ega& in*eres* and
a**orne+2s fees, agains* Kong Wong Is&and Co%,an+, 6*d., Mari*i%e
AgenciesV Ser-ices, Inc. andTor Ni-a C(s*o%s :ro0erage. On $> A,ri&
!"#!, *he co%,&ain* was a%ended *o dro, Ni-a and i%,&ead Macondra+
Co%,an+, Inc. as a new defendan*. On M Jan(ar+ !"#M, af*er *ria&, *he
*ria& co(r*rendered 1(dg%en*, ordering 8a9 Kong0ong Is&and Co., 6*d., and
i*s &oca& agen* Macondra+ V Co., Inc. *o ,a+ 7nion *he s(% of .#E,!
F4.=M ,&(s !$X in*eres* fro% $> A,ri& !"#! (n*i& *he who&e a%o(n* is
f(&&+ ,aid,.!,>>>.>> as a**orne+2s fees and *o ,a+ Y of *he cos*s) and 8b9
Mari*i%e Agencies V Ser-ices, Inc., *o ,a+ 7nion *he s(% of .4F,>4>.$4,
,&(s !$X in*eres* fro% $> A,ri& !"#! (n*i& *he who&e a%o(n* is f(&&+
,aid,.F>>.>> as a**orne+2s fees and *o ,a+ Y of *he cos*s. Mari*i%e
Agencies V Ser-ices a,,ea&ed *he decision *o *he Co(r* of A,,ea&s,
which rendered a decision on$# No-e%ber !"#F, %odif+ing *he decision
a,,ea& fro%, /nding *he char*erer Transcon*inen*a& Fer*i&i'er Co., 6*d.
re,resen*ed b+ i*s agen* Mari*i%e Agencies V Ser-ices, Inc. &iab&e for *he
a%o(n* of .#E,!F4.=M ,&(s in*eres* a* !$X ,&(s a**orne+2s fees of
.!,>>>.>>. Kong Wong Is&and Cos. 6*d. re,resen*ed b+ Macondra+ Co.,
Inc. were according&+ eGe%,*ed fro% an+ &iabi&i*+. Mari*i%e and 7nion
/&ed se,ara*e %o*ions for reconsidera*ion which were bo*h denied.
Kence, *he ,e*i*ions. These *wo cases were conso&ida*ed and gi-en d(e
co(rse, *he ,ar*ies being reC(ired *o s(b%i* si%(&*aneo(s %e%oranda.
A&& co%,&ied, inc&(ding Kong Wong Is&and Co%,an+, 6*d., and Macondra+
Co%,an+, Inc., a&*ho(gh *he+ ,oin*ed o(* *ha* *he+ were no* in-o&-ed in
*he ,e*i*ions. The S(,re%e Co(r* se* aside *he decision of *he a,,e&&a*e
co(r*, and reins*a*ed *ha* of *he *ria& co(r* as %odi/ed) and f(r*her
ho&ding *ha* *he ,ar*ies sha&& bear *heir res,ec*i-e cos*s.
Ne-er*he&ess, *his r(&ing canno* bene/* Kong0ong, beca(se *here was no showing
in *ha* case *ha* *he -esse& was a* fa(&*. In *he cases a* bar, *he *ria& co(r* fo(nd
*ha* !,4#4 bags were shor*&anded, which co(&d on&+ %ean *ha* *he+ were
da%aged or &os* on board *he -esse& before (n&oading of *he shi,%en*. I* is no*
denied *ha* *he en*ire cargo shi,,ed b+ *he char*erer in Odessa was co-ered b+ a
c&ean bi&& of &ading.
1#
As *he bags were in good order when recei-ed in *he -esse&,
*he ,res(%,*ion is *ha* *he+ were da%aged or &os* d(ring *he -o+age as a res(&*
of *heir neg&igen* i%,ro,er s*owage. For *his *he shi, owner sho(&d be he&d &iab&e.
:(* we do agree *ha* *he ,eriod for /&ing *he c&ai% is one +ear, in accordance
wi*h *he Carriage of Goods b+ Sea Ac*. This was ado,*ed and e%bodied b+ o(r
&egis&a*(re in Co%. Ac* No. F= which, as a s,ecia& &aw, ,re-ai&s o-er *he genera&
,ro-isions of *he Ci-i& Code on ,rescri,*ion of ac*ions. Sec*ion 48F9 of *ha* Ac*
,ro-ides as fo&&owsB
In an+ e-en*, *he carrier and *he shi, sha&& be discharged fro% a&& &iabi&i*+
in res,ec* of &oss or da%age (n&ess s(i* is bro(gh* wi*hin one +ear af*er
de&i-er+ of *he goods or *he da*e when *he goods sho(&d ha-e been
de&i-ered) .ro-ided, *ha* if a no*ice of &oss for da%age) ei*her a,,aren*
or concea&ed, is no* gi-en as ,ro-ided for in *his sec*ion, *ha* fac* sha&&
no* eAec* or ,re1(dice *he righ* of *he shi,,er *o bring s(i* wi*hin one
+ear af*er *he de&i-er+ of *he goods or *he da*e when *he goods sho(&d
ha-e been de&i-ered.
This ,eriod was a,,&ied b+ *he Co(r* in *he case of "nion Car#ide, $hilippines,
%nc. v. &anila 'ailroad Co.,
17
where i* was he&dB
7nder *he fac*s of *his case, we he&d *ha* *he oneJ+ear ,eriod was
correc*&+ rec0oned b+ *he *ria& co(r* fro% Dece%ber !", !"F!, when, as
agreed (,on b+ *he ,ar*ies and as shown in *he *a&&+ shee*s, *he cargo
was discharged fro% *he carr+ing -esse& and de&i-ered *o *he Mani&a .or*
Ser-ice. Tha* oneJ+ear ,eriod eG,ired on Dece%ber !", !"F$. Inas%(ch
as *he ac*ion was /&ed on Dece%ber $!, !"F$, i* was barred b+ *he
s*a*(*e of &i%i*a*ions.
The oneJ+ear ,eriod in *he cases a* bar sho(&d co%%ence on Oc*ober $>, !"E",
when *he &as* i*e% was de&i-ered *o *he consignee.
1$
7nionQs co%,&ain* was /&ed
agains* Kong0ong on Se,*e%ber !", !"#>, b(* *ardi&+ agains* Macondra+ on A,ri&
$>, !"#!. The conseC(ence is *ha* *he ac*ion is considered ,rescribed as far as
Macondra+ is concerned b(* no* agains* i*s ,rinci,a&, which is wha* %a**ers
an+wa+.
As regards *he goods da%aged or &os* d(ring (n&oading, *he char*erer is &iab&e
*herefor, ha-ing ass(%ed *his ac*i-i*+ (nder *he char*er ,ar*+ Sfree of eG,ense *o
*he -esse&.S The di?c(&*+ is *ha* Transcon*inen*a& has no* been i%,&eaded in
*hese cases and so is be+ond o(r 1(risdic*ion. The &iabi&i*+ i%,osab&e (,on i*
canno* be borne b+ Mari*i%e which, as a %ere agen*, is no* answerab&e for in1(r+
ca(sed b+ i*s ,rinci,a&. I* is a we&&Jse**&ed ,rinci,&e *ha* *he agen* sha&& be &iab&e
for *he ac* or o%ission of *he ,rinci,a& on&+ if *he &a**er is (ndisc&osed.
1'
7nion see0s *o ho&d Mari*i%e &iab&e as shi, agen* on *he basis of *he r(&ing of *his
Co(r* in *he case of Swit(erland )eneral %nsurance
Co., *td. v. 'a+ire(.
2(
Kowe-er, we do no* /nd *ha* case is a,,&icab&e.
In *ha* case, *he char*erer re,resen*ed i*se&f on *he face of *he bi&& of &ading as *he
carrier. The -esse& owner and *he char*erer did no* s*i,(&a*e in *he Char*er ,ar*+
on *heir se,ara*e res,ec*i-e &iabi&i*ies for *he cargo. The &ossTda%age *o *he cargo
was s(s*ained whi&e i* was s*i&& on board or (nder *he c(s*od+ of *he -esse&. As
*he char*erer was i*se&f *he carrier, i* was %ade &iab&e for *he ac*s of *he shi,
ca,*ain who was res,onsib&e for *he cargo whi&e (nder *he c(s*od+ of *he -esse&.
As for *he char*ererQs agen*, *he e-idence showed *ha* i* re,resen*ed *he -esse&
when i* *oo0 charge of *he (n&oading of *he cargo and iss(ed cargo recei,*s 8or
*a&&+ shee*s9 in i*s own na%e. C&ai%s agains* *he -esse& for *he &ossesTda%ages
s(s*ained b+ *ha* cargo were a&so recei-ed and ,rocessed b+ i*. As a res(&*, *he
char*ererQs agen* was a&so considered a shi, agen* and so was he&d *o be
so&idari&+ &iab&e wi*h i*s ,rinci,a&.
The fac*s in *he cases a* bar are diAeren*. The char*erer did no* re,resen* i*se&f as
a carrier and indeed ass(%ed res,onsibi&i*+ abi&i*+ on&+ for *he (n&oading of *he
cargo, i.e, af*er *he goods were a&read+ o(*side *he c(s*od+ of *he -esse&. In
s(,er-ising *he (n&oading of *he cargo and iss(ing Dai&+ O,era*ions Re,or* and
S*a*e%en* of Fac*s indica*ing and describing *he da+J*oJda+ discharge of *he
cargo, Mari*i%e ac*ed in re,resen*a*ion of *he char*erer and no* of *he -esse&. I*
*h(s canno* be considered a shi, agen*. As a %ere char*ererQs agen*, i* canno* be
he&d so&idari&+ &iab&e wi*h Transcon*inen*a& for *he &ossesTda%ages *o *he cargo
o(*side *he c(s*od+ of *he -esse&. No*ab&+, Transcon*inen*a& was disc&osed as *he
char*ererQs ,rinci,a& and *here is no C(es*ion *ha* Mari*i%e ac*ed wi*hin *he sco,e
of i*s a(*hori*+.
Kong0ong and Macondra+ ,oin* o(* in *heir %e%orand(% *ha* *he a,,ea&ed
decision is no* assai&ed insofar as i* fa-ors *he% and so has beco%e /na& as *o
*he%. 3e do no* *hin0 so. Firs* of a&&, we no*e *ha* *he+ were for%a&&+ i%,&eaded
as res,onden*s in G.R No. EEFEM and s(b%i**ed *heir co%%en* and &a*er *heir
%e%orand(%, where *he+ disc(ssed a* &eng*h *heir ,osi*ion vis-a-vis *he c&ai%s
of *he o*her ,ar*ies. Second&+, we rei*era*e *he r(&e *ha* e-en if iss(es are no*
for%a&&+ and s,eci/ca&&+ raised on a,,ea&, *he+ %a+ ne-er*he&ess be considered
in *he in*eres* of 1(s*ice for a ,ro,er decision of *he case.
*ULUETA VS. PAN AMERICAN WORLD AIRWAYS
FACTSB
.& ai n* i A R(& (e* a, hi s wi f e and da(gh* er wer e ,as s enger
s aboar ddefendan*2s ,& ane fro% Kono& (& ( *o Mani &a. 7,on
reaching 3a0e Is&and *he ,assengers were ad-ised *ha* *he+ co(&d
dise%bar0 for a s*o,o-er for abo(* 4> %in(*es.
.&ain*i A wen* *o *he *oi& e* a* *he *er%ina& b(i &ding b(* /ndi ng
i * f (& &
wa& 0ed $>>+ar ds awa+. 7,on r e* (r ni ng he * o& d an e%,&
o+ee of * he defendan* *ha* *he+ a& %os* %ade hi% %iss *he
@i gh* beca(se of a defec*i -e anno(nci ng s+s*e%.
Ke had a disc(ssion wi*h ei *her *he ,&an ca,*ai n or *he
* er %i na& %anager. Ke was * o& d * ha* * he+ wo(& d o,en
hi s bags whi ch he r ef (s ed and he war ned * he% of * he
cons eC(ences .
J ( s * * h e s a %e * h e + o,ened hi s bags and fo(nd no*hi ng
,rohi bi *ed. The+ forced hi% *o go o(* of *he ,& ane and &ef*
hi% a* 3a0e Is&and. Kis wife had *o send hi% %one+ and he
was ab& e * o & ea-e 3a0e I s & and and r e* (r n * o Mani & a
* hr ( Kono& (& ( and To0+o af*er *wo da+s. This ac*ion was *o reco-er
da%ages fro% *he defendan*.
ISSUE:
3ON %ora& da%ages %a+ be reco-ered.
HELD
B ;The records a%,&+ es*ab&ish ,&ain*iAs2 righ* *o reco-er bo*h %ora& and
eGe%,&ar+ da%ages. Indeed, *he r(de and ro(gh rece,*ion ,&ain*iA
recei-ed a* * he hands of Si * * on or Ca,* ai n Ren* ner when
* he & a* * er %e* hi % a* * he r a %, 8 Z 3h a * i n * h e h e & & d o
+ o ( * h i n 0 + o ( a r e P G e * o n * h a * , & a n e 2 9 )
* h e %enacing a**i*(de of Ren*ner or Si**on and *he s(,erci&io(s %anner
in which he had as0ed ,&ain*iA *o o,en his bags 8Zo,en +o(r bag2, and
when *o&d *ha* a fo(r*h bag was %issing, ZI don2* gi -e a da%n29)
*he ab(si -e & ang(age and
h i g h & + s c o r n f ( & r e f e r e n c e * o , & a i n * i A s a s %o n 0 e +
s b + ! o f . A N A M2 s e%,&o+ees 8who *(rning *o Mrs. R(&(e*a
re%ar0ed, ;wi&& +o( ,(&& *hese *hree %on0e+s o(* of hereP<9) *he
(nfri end& + a**i*(de, *he (g&+ s*ares and (n0ind re%ar0s *o which
,&ain*iAs were s(b1ec*ed, and *heir being cordoned b+ %en i n (nifor%
as if *he+ were cri%ina& s, whi& e ,&ain*i A was arg(ing wi*h
Si**on) *he air&ine o?cia&s2 ref(sa& *o a&&ow ,&ain*iA *o board *he ,&ane
on *he ,re*eG* *ha* he was hiding a bo%b in his &(ggage and *heir
arbi*rar+ and highJhanded
deci s i on * o & ea-e hi % i n 3a0e) Mr s. R(& (e* a2 s ha-i ng s
(A er ed a ner -o(s brea0down for which she was hos,i*a&i'ed as a
res(&* of *he e%barrass%en*, i ns(& *s and h(%i &i a*ions *o which
,& ai n*iAs were eG,osed b+ *he cond(c* of .AN AM2s
e%,& o+ees) Mrs. R(& (e*a ha-ing s(Aered sha%e, h(%i& ia*i on
and e%barrass%en* for *he *rea*%en* recei-ed b+ her ,aren*s a* *he
air,or* a&& * hes e 1 (s * i f + an awar d f or %or a& da%ages
r es (& * i ng f r o% %en* a& ang(i s h, serio(s anGie*+, wo(nded
fee&ings, %ora& shoc0, and socia& h(%i&ia*ion *hereb+ s(Aered b+
,&ain*iAs<. .&ain*iAs were awarded .esos =>>,>>>.>>
and%ora& da%ages, .esos $>>,>>>.>> eGe%,& ar+ da%ages, .es
os E=,>>>.>>a**orne+2s fees and .esos =,=>$.#= ac*(a& da%ages.
GATCHALIAN V. DELIM
FACTS:
On J(&+ !!, !"E4, ,e*i*ioner Re+na&da Ga*cha&ian boarded as ,a+ing ,assenger a
%inib(s owned b+ res,onden*s. 3hi&e *he b(s was r(nning a&ong *he highwa+, a
;sna,,ing so(nd< was heard, and af*er a shor* whi&e, *he b(s b(%,ed a ce%en*
@ower ,o*, *(rned *(r*&e and fe&& in*o a di*ch. The ,assengers were con/ned in *he
hos,i*a&, and *heir bi&&s were ,aid b+ res,onden*2s s,o(se on J(&+ !M. :efore Mrs.
De&i% &ef*, she had *he in1(red ,assengers sign an a&read+ ,re,ared a?da-i*
wai-ing *heir c&ai%s agains* res,onden*s. .e*i*ioner was a%ong *hose who
signed. No*wi*hs*anding *he said doc(%en*, ,e*i*ioner /&ed a c&ai% *o reco-er
ac*(a& and %ora& da%ages for &oss of e%,&o+%en* o,,or*(ni*ies, %en*a& s(Aering
and inferiori*+ co%,&eG ca(sed b+ *he scar on her forehead. Res,onden*s raised
in defense force %a1e(re and *he wai-er signed b+ ,e*i*ioner. The *ria& co(r*
(,he&d *he -a&idi*+ of *he wai-er and dis%issed *he co%,&ain*. The a,,e&&a*e
co(r* r(&ed *ha* *he wai-er was in-a&id, b(* a&so *ha* *he ,e*i*ioner is no* en*i*&ed
*o da%ages.
ISSUES:
8!9 3he*her *here was a -a&id wai-er
8$9 3he*her *he res,onden* was neg&igen*
849 3he*her *he ,e*i*ioner is en*i*&ed *o ac*(a& and %ora& da%ages
HELD:
8!9 3e agree wi*h *he %a1ori*+ of *he Co(r* of A,,ea&s who he&d *ha* no -a&id
wai-er of her ca(se of ac*ion had been %ade b+ ,e*i*ioner. A wai-er, *o be -a&id
and eAec*i-e, %(s* in *he /rs* ,&ace be co(ched in c&ear and (neC(i-oca& *er%s
which &ea-e no do(b* as *o *he in*en*ion of a ,erson *o gi-e (, a righ* or bene/*
which &ega&&+ ,er*ains *o hi%. A wai-er %a+ no* cas(a&&+ be a**rib(*ed *o a ,erson
when *he *er%s *hereof do no* eG,&ici*&+ and c&ear&+ e-idence an in*en* *o
abandon a righ* -es*ed in s(ch ,erson.
The circ(%s*ances (nder which *he Join* A?da-i* was signed b+ ,e*i*ioner
Ga*cha&ian need *o be considered. .e*i*ioner *es*i/ed *ha* she was s*i&& ree&ing
fro% *he eAec*s of *he -ehic(&ar acciden* when *he ,(r,or*ed wai-er in *he for%
of *he Join* A?da-i* was ,resen*ed *o her for signing) *ha* whi&e reading *he
sa%e, she eG,erienced di''iness b(* *ha*, seeing *he o*her ,assengers who had
a&so s(Aered in1(ries sign *he doc(%en*, she *oo signed wi*ho(* bo*hering *o read
*he Join* A?da-i* in i*s en*ire*+. Considering *hese circ(%s*ances, *here a,,ears
s(bs*an*ia& do(b* whe*her ,e*i*ioner (nders*ood f(&&+ *he i%,or* of *he Join*
A?da-i* 8,re,ared b+ or a* *he ins*ance of ,ri-a*e res,onden*9 she signed and
whe*her she ac*(a&&+ in*ended *hereb+ *o wai-e an+ righ* of ac*ion agains* ,ri-a*e
res,onden*.Fina&&+, beca(se wha* is in-o&-ed here is *he &iabi&i*+ of a co%%on
carrier for in1(ries s(s*ained b+ ,assengers in res,ec* of whose safe*+ a co%%on
carrier %(s* eGercise eG*raordinar+ di&igence, we %(s* cons*r(e an+ s(ch
,(r,or*ed wai-er %os* s*ric*&+ agains* *he co%%on carrier. To (,ho&d a s(,,osed
wai-er of an+ righ* *o c&ai% da%ages b+ an in1(red ,assenger, (nder
circ(%s*ances &i0e *hose eGhibi*ed in *his case, wo(&d be *o di&(*e and wea0en *he
s*andard of eG*raordinar+ di&igence eGac*ed b+ *he &aw fro% co%%on carriers and
hence *o render *ha* s*andard (nenforceab&e. 3e be&ie-e s(ch a ,(r,or*ed wai-er
is oAensi-e *o ,(b&ic ,o&ic+.
8$9 In case of dea*h or in1(ries *o ,assengers, a s*a*(*or+ ,res(%,*ion arises *ha*
*he co%%on carrier was a* fa(&* or had ac*ed neg&igen*&+ S(n&ess i* ,ro-es *ha* i*
HhadI obser-ed eG*raordinar+ di&igence as ,rescribed in Ar*ic&es !E44 and !E==.S
To o-erco%e *his ,res(%,*ion, *he co%%on carrier %(s* show *o *he co(r* *ha* i*
had eGercised eG*raordinar+ di&igence *o ,resen* *he in1(ries. The s*andard of
eG*raordinar+ di&igence i%,osed (,on co%%on carriers is considerab&+ %ore
de%anding *han *he s*andard of ordinar+ di&igence. A co%%on carrier is bo(nd *o
carr+ i*s ,assengers safe&+ Sas far as h(%an care and foresigh* can ,ro-ide, (sing
*he (*%os* di&igence of a -er+ ca(*io(s ,erson, wi*h d(e regard *o a&& *he
circ(%s*ancesS.
The records before *he Co(r* are beref* of an+ e-idence showing *ha* res,onden*
had eGercised *he eG*raordinar+ di&igence reC(ired b+ &aw. The ob-io(s con*in(ed
fai&(re of res,onden* *o &oo0 af*er *he roadwor*hiness and safe*+ of *he b(s,
co(,&ed wi*h *he dri-erQs ref(sa& or neg&ec* *o s*o, *he %iniJb(s af*er he had
heard once again *he Ssna,,ing so(ndS and *he cr+ of a&ar% fro% one of *he
,assengers, cons*i*(*ed wan*on disregard of *he ,h+sica& safe*+ of *he
,assengers, and hence gross neg&igence on *he ,ar* of res,onden* and his dri-er.
849 A* *he *i%e of *he acciden*, she was no &onger e%,&o+ed in a ,(b&ic schoo&.
Ker e%,&o+%en* as a s(bs*i*(*e *eacher was occasiona& and e,isodic, con*ingen*
(,on *he a-ai&abi&i*+ of -acancies for s(bs*i*(*e *eachers. She co(&d no* be said *o
ha-e in fac* &os* an+ e%,&o+%en* af*er and b+ reason of *he acciden*. She %a+
no* be awarded da%ages on *he basis of s,ec(&a*ion or con1ec*(re.
.e*i*ionerQs c&ai% for *he cos* of ,&as*ic s(rger+ for re%o-a& of *he scar on her
forehead, is ano*her %a**er. A ,erson is en*i*&ed *o *he ,h+sica& in*egri*+ of his or
her bod+) if *ha* in*egri*+ is -io&a*ed or di%inished, ac*(a& in1(r+ is s(Aered for
which ac*(a& or co%,ensa*or+ da%ages are d(e and assessab&e. .e*i*ioner
Ga*cha&ian is en*i*&ed *o be ,&aced as near&+ as ,ossib&e in *he condi*ion *ha* she
was before *he %isha,. A scar, es,ecia&&+ one on *he face of *he wo%an, res(&*ing
fro% *he in@ic*ion of in1(r+ (,on her, is a -io&a*ion of bodi&+ in*egri*+, gi-ing raise
*o a &egi*i%a*e c&ai% for res*ora*ion *o her condi*io an*e.
Mora& da%ages %a+ be awarded where gross neg&igence on *he ,ar* of *he
co%%on carrier is shown. Considering *he eG*en* of ,ain and anGie*+ which
,e*i*ioner %(s* ha-e s(Aered as a res(&* of her ,h+sica& in1(ries inc&(ding *he
,er%anen* scar on her forehead, we be&ie-e *ha* *he a%o(n* of .4>,>>>.>> wo(&d
be a reasonab&e award. .e*i*ionerQs c&ai% for .!,>>>.>> as a**orne+Qs fees is in
fac* e-en %ore %odes*.
MARCHAN vs. MENDO*A
FACTS:
A ,assenger b(s of *he .hi&i,,ine Rabbi* :(s 6ines, which was *hen dri-en b+
Si&-erio Marchan fe&& in*o a di*ch so%ewhere in :arrio Ma&anda+, .o&o, :(&acan,
whi&e *ra-e&&ing on i*s wa+ *o Mani&a) as a res(&* of which ,&ain*iAsJa,,e&&ees
Arsenio Mendo'a, his wife and chi&d, who were *hen inside *he b(s as ,assengers
were *hrown o(* *o *he gro(nd res(&*ing in *heir %(&*i,&e in1(ries. .&ain*iA Arsenio
Mendo'a s(Aered *he %os* serio(s in1(ries which da%aged his -er*ebrae ca(sing
*he ,ara&+sis of his &ower eG*re%i*ies which (, *o *he *i%e when *his case was
*ried he con*in(ed *o s(Aer. The ,h+sician who a**ended and *rea*ed ,&ain*iA
Arsenio Mendo'a o,ined *ha* he %a+ ne-er wa&0 again. ConseC(en*&+ *he dri-er
of said b(s Si&-erio Marchan was ,rosec(*ed for serio(s, &ess serio(s and s&igh*
,h+sica& in1(ries *hro(gh rec0&ess i%,r(dence and *hereaf*er con-ic*ed as
charged. In *his ,resen* ac*ion before (s, ,&ain*iAsJa,,e&&ees Arsenio Mendo'a,
his wife and chi&d so(gh* *o reco-er da%ages agains* defendan*Ja,,e&&an*
Arsenio Marchan, and fro% defendan*sJa,,e&&an*s :ien-enido .. :(an and
Na*i-idad .aras in *heir ca,aci*+ as ad%inis*ra*or and ad%inis*ra*iG, res,ec*i-e&+
of *he es*a*e of *he &a*e F&orencio .. :(an, doing b(siness (nder *he s*+&e na%e of
*he .hi&i,,ine Rabbi* :(s 6ines, ,redica*ed no* on&+ on a breach of con*rac* of
carriage for fai&(re of defendan*s o,era*or as we&& as *he defendan* dri-er *o
safe&+ con-e+ *he% *o *heir des*ina*ion, b(* a&so on acco(n* of a cri%ina&
neg&igence on *he ,ar* of defendan* Si&-erio Marchan res(&*ing *o ,&ain*iAJ
a,,e&&eeQs %(&*i,&e ,h+sica& da%ages.S
ISSUE:
3ON *he award of co%,ensa*or+ and eGe%,&ar+ da%age is ,ro,erP
HELD:
As *o wh+ *he a%o(n* in co%,ensa*or+ da%ages sho(&d be /Ged in *he s(% of
.M>,>>>.>> is eG,&ained in *he a,,ea&ed decision *h(sB S6i0ewise, i* is o(r
considered -iew *ha* *he a%o(n* of .M>,>>>.>> awarded b+ *he co(r* be&ow as
co%,ensa*or+ da%ages is C(i*e reasonab&e and fair, considering *ha* ,&ain*iA
Arsenio Mendo'a had s(Aered ,ara&+sis on *he &ower eG*re%i*ies, which wi&&
inca,aci*a*e hi% *o engage in his c(s*o%ar+ occ(,a*ion *hro(gho(* *he
re%aining +ears of his &ife, es,ecia&&+ so if we *a0e in*o acco(n* *ha* ,&ain*iA
Arsenio Mendo'a was on&+ $F +ears o&d when he %e* an acciden* on Jan(ar+ $$,
!"=M) and *a0ing *he a-erage s,an of &ife of a Fi&i,ino, he %a+ be eG,ec*ed *o &i-e
for 4> +ears %ore) and bearing in %ind *he earning ca,aci*+ of Arsenio Mendo'a
who before *he ha,,ening of *his acciden* deri-ed an inco%e of a&%os* .!>>.>> a
%on*h fro% *he b(siness of his fa*herJinJ&aw as Assis*an* S(,er-isor of *he s%a&&
HfairsI and his inco%e of .!>>.>> a %on*h which he deri-ed as a ,rofessiona&
boGer.S
#
Considering *ha* res,onden* Arsenio Mendo'a was on&+ in his %idd&e
*wen*ies when, *hr( *he neg&igence of ,e*i*ioners, he &os* *he (se of his &i%bs,
being conde%ned for *he re%ainder of his &ife *o be a ,ara&+*ic, in eAec* &eading a
%ai%ed, we&&Jnigh (se&ess eGis*ence, *he /Ging of s(ch &iabi&i*+ in *he a%o(n* of
.M>,>>>.>> as co%,ensa*or+ da%ages was we&& wi*hin *he discre*ion of *he Co(r*
of A,,ea&s. ,-wph.,./0t
As *o *he /nding of &iabi&i*+ for eGe%,&ar+ da%ages, *he Co(r* of A,,ea&s, in i*s
reso&(*ion of March 4!, !"F=, s*a*ed *he fo&&owingB S3e now co%e *o *he
i%,osi*ion of eGe%,&ar+ da%ages (,on defendan*sJa,,e&&an*sQ carrier. I* is
arg(ed *ha* *his Co(r* is wi*ho(* 1(risdic*ion *o ad1(dica*e *his eGe%,&ar+
da%ages since *here was no a&&ega*ion nor ,ra+er, nor ,roof, nor co(n*erc&ai% of
error for *he sa%e b+ *he a,,e&&ees. I* is *o be obser-ed howe-er, *ha* in *he
co%,&ain*, ,&ain*iAs S,ra+ed for s(ch o*her and f(r*her re&ief as *his Co(r* %a+
dee% 1(s* and eC(i*ab&e.S Now, since *he bod+ of *he co%,&ain* so(gh* *o reco-er
da%ages agains* *he defendan*Jcarrier wherein ,&ain*iAs ,ra+ed for
inde%ni/ca*ion for *he da%ages *he+ s(Aered as a res(&* of *he neg&igence of
said Si&-erio Marchan who is a,,e&&an*Qs e%,&o+ee) and since eGe%,&ar+ da%ages
is in*i%a*e&+ connec*ed wi*h genera& da%ages, ,&ain*iAs %a+ no* be eG,ec*ed *o
sing&e o(* b+ eG,ress *er% *he 0ind of da%ages *he+ are *r+ing *o reco-er agains*
*he defendan*Qs carrier. S(?ce i* *o s*a*e *ha* when ,&ain*iAs ,ra+ed in *heir
co%,&ain* for s(ch o*her re&ief and re%edies *ha* %a+ be a-ai&ed of (nder *he
,re%ises, in eAec*, *herefore, *he co(r* is ca&&ed (,on *he eGercise and (se i*s
discre*ion whe*her *he i%,osi*ion of ,(ni*i-e or eGe%,&ar+ da%ages e-en *ho(gh
no* eG,ress&+ ,ra+ed or ,&eaded in *he ,&ain*iAsQ co%,&ain*.S
DE CALISTO vs. CA
3hi&e dri-ing a ,assenger b(s in :aco&od Ci*+, ,ri-a*e res,onden* Geroni%o
Da&%acio ran o-er J(ana Son'a Nda. de Darrocha 8a 7SNA ,ensioner9 who died
ins*an*&+, s(r-i-ed b+ her on&+ chi&d, G&oria Darrocha de Ca&is*on, *he herein
,e*i*ioner.
.rosec(*ed for ho%icide *hr( rec0&ess i%,r(dence, Da&%acio was con-ic*ed b+
*he Co(r* of Firs* Ins*ance of Negros Occiden*a&, sen*enced *o i%,rison%en* and
ordered *o ,a+ *he herein ,e*i*ioner .!=,>>>.>> for *he dea*h of *he -ic*i%,
.=,>>>.>> as %ora& da%ages, .=,>>>.>> for b(ria& eG,enses and .!>,>>>.>> for
&oss of ,ension which *he deceased had fai&ed *o recei-e.
On a,,ea&, *he for%er Co(r* of A,,ea&s %odi/ed *he CFI decision b+ abso&-ing
Da&%acio fro% *he ,a+%en* of *he .!>,>>>.>> for &oss of ,ension and credi*ed
hi% for *he a%o(n* of .=,>>>.>> ,re-io(s&+ ,aid *o *he herein ,e*i*ioner (nder a
-ehic(&ar ins(rance ,o&ic+ ob*ained b+ *he b(s owner.
The abo-e %odi/ca*ions are now assai&ed in *his ,e*i*ion for re-iew on which *he
,ri-a*e res,onden* has /&ed his co%%en*.
The de&e*ion of *he .!>,>>>.>> awarded for &oss of ,ension is (n1(s*i/ed. 7nder
Ar*ic&e $$>F of *he Ci-i& Code L
The a%o(n* of da%ages for dea*h ca(sed b+ a cri%e or C(asiJ
de&ic* sha&& be a* &eas* *hree *ho(sand ,esos, e-en *ho(gh *here
%a+ ha-e been %i*iga*ing circ(%s*ances. In addi*ionB
8!9 The defendan* sha&& be &iab&e for *he &oss of *he earning
ca,aci*+ of *he deceased, and *he inde%ni*+ shag be ,aid *o
*he heirs of *he &a**er. . .
The ,ension of *he deceden* being a s(re inco%e *ha* was c(* shor* b+ her dea*h
for which Da&%acio was res,onsib&e, *he s(r-i-ing heir of *he for%er is en*i*&ed *o
*he award of . !>,>>>.>> which is 1(s* eC(i-a&en* *o *he ,ension *he deceden*
wo(&d ha-e recei-ed for one +ear if she did no* die.
On *he o*her hand, *he .=,>>>.>> ,aid *o *he herein ,e*i*ioner b+ *he ins(rer of
*he ,assenger b(s which /g(red in *he acciden* %a+ be dee%ed *o ha-e co%e
fro% *he b(s owner who ,roc(red *he ins(rance. Since *he ci-i& &iabi&i*+ 8eGJ
de&ic*o9 of *he &a**er for *he dea*h ca(sed b+ his dri-er is s(bsidiar+ and, a*
bo**o%, arises fro% *he sa%e c(&,a, *he ins(rance ,roceeds sho(&d be credi*ed in
fa-or of *he erran* dri-er.
3KEREFORE, *he ,e*i*ion is hereb+ gran*ed ,ar*ia&&+ in *ha* *he .!>,>>>.>> award
for &oss of ,ension de&e*ed in *he a,,ea&ed Co(r* of A,,ea&s decision is hereb+
reins*a*ed. Cos*s agains* ,ri-a*e res,onden*.
TRANSWORLD AIRLINES vs. CA
F+,-sB
A**+. Nin&(an ,(rchased a /rs* c&ass *ic0e* fro% *he ,e*i*ioner. S(ch *ic0e* was
*wice con/r%ed and +e* *he ,e*i*ioner abr(,*&+ *o&d *he res,onden* *ha* *here
were no &onger an+ a-ai&ab&e sea*s in *he /rs* c&ass and *ha* he wi&& be
downgraded *o *he econo%+ c&ass. 3hen he ,ro*es*ed, an e%,&o+ee of *he
,e*i*ioner arrogan*&+ *hrea*ened *he res,onden*. In addi*ion, he a&so saw *ha*
se-era& Ca(casians who arri-ed %(ch &a*er were acco%%oda*ed in *he /rs* c&ass
when *he o*her ,assengers did no* show (,. The res,onden* *hen s(ed *he
,e*i*ioner for da%ages.
Iss./:
3he*her or no* *he ,e*i*ioner is &iab&e for da%ages.
H/01:
The Co(r* he&d *ha* *he ,e*i*ioner is &iab&e for %ora& and eGe%,&ar+ da%ages. The
discri%ina*ion in *his case is ob-io(s and *he h(%i&ia*ion bro(gh* *o *he
res,onden* is indis,(*ab&e. The ,e*i*ioner showed &ac0 of care in acco%%oda*ing
*he res,onden* in *he c&ass *ha* *he &a**er con*rac*ed. In addi*ion, *he ,e*i*ioner
r(de&+ infor%ed *he res,onden* of s(ch downgrading of c&ass. S(ch awarding of
da%ages wo(&d ser-e as an eGa%,&e and a disco(rage%en* *o carriers who %a+
re,ea* s(ch o,,ressi-e and discri%ina*or+ ac*s.
PRUDENCIADO V. ALLIANCE TRANSPORT SYSTEM
FACTS:
On Ma+ !!, !"F>, Dra. So/a .r(denciado was dri-ing her car. She was abo(* *o
cross Taf* A-en(e when a *aGicab owned b+ res,onden* and dri-en b+ Jose 6e+son
b(%,ed her car. The Co(r* of Firs* Ins*ance of Ri'a& fo(nd 6e+son g(i&*+ of
neg&igence in *he ,erfor%ance of his d(*+. A&&iance fai&ed *o ,ro-e *ha* i*
eGercised *he di&igence of a good fa*her of a fa%i&+ in *he se&ec*ion and
s(,er-ision of i* e%,&o+ees, and was he&d 1oin*&+ and se-era&&+ &iab&e.
ISSUE:
3he*her *he ,e*i*ioner is en*i*&ed *o %ora& and eGe%,&ar+ da%ages, and *o wha*
eG*en*
HELD:
A caref(& re-iew of *he records %a0es i* readi&+ a,,aren* *ha* *he in1(ries
s(s*ained b+ Dra. .r(denciado are no* as serio(s or eG*ensi-e as *he+ were
c&ai%ed *o be, *o warran* *he da%ages awarded b+ *he *ria& co(r*. In fac*, a c&oser
scr(*in+ of *he eGhibi*s showing a %odera*e da%age *o *he car can b+ no s*re*ch
of *he i%agina*ion ,rod(ce a &ogica& conc&(sion *ha* s(ch disas*ro(s eAec*s of *he
acciden* so(gh* *o be es*ab&ished, ac*(a&&+ *oo0 ,&ace, no* *o %en*ion *he fac*
*ha* s(ch were no* s(,,or*ed b+ *he %edica& /ndings ,resen*ed. 7nC(es*ionab&+,
*herefore, *he da%ages i%,osedQ b+ *he &ower co(r* sho(&d be red(ced *o %ore
reasonab&e &e-e&s. On *he o*her hand, i* wi&& be obser-ed *ha* *he red(c*ion of *he
da%ages %ade b+ *he Co(r* of A,,ea&s is bo*h *oo dras*ic and (nrea&is*ic, *o ,ass
*he *es* of reasonab&eness, which a,,ears *o be *he (nder&+ing basis *o 1(s*if+
s(ch red(c*ion. 3hi&e *he da%ages so(gh* *o be reco-ered were no* sa*isfac*ori&+
es*ab&ished *o *he eG*en* desired b+ *he ,e*i*ioner, i* was none*he&ess no*
dis,(*ed *ha* an acciden* occ(rred d(e *o *he fa(&* and neg&igence of *he
res,onden*s) *ha* Dra. .r(denciado s(Aered a brain conc(ssion which a&*ho(gh
%i&d can ad%i**ed&+ ,rod(ce *he eAec*s co%,&ained of b+ her and *ha* *hese
s+%,*o%s can de-e&o, af*er se-era& +ears and can &ead *o so%e, serio(s
handica,s or ,redis,ose *he ,a*ien* *o o*her sic0ness. :eing a doc*or b+
,rofession, her fears can be %ore rea& and in*ense *han an ordinar+ ,erson.
O*herwise s*a*ed, she is (ndeniab&+ a ,ro,er reci,ien* of %ora& da%ages which
are ,ro,or*iona*e *o her s(Aering.
The /ndings of *he *ria& co(r* in *he case a* bar which beca%e *he basis of *he
award of eGe%,&ar+ da%ages are *o *he eAec* *ha* i* is %ore a,,aren* fro% *he
fac*s, condi*ions and circ(%s*ances ob*aining in *he record of *he case *ha*
res,onden* dri-er was r(nning a* high s,eed af*er *(rning *o *he righ* a&ong Taf*
A-e. co%ing fro% A+a&a :o(&e-ard, considering *ha* *he *ra?c was c&ear. Fai&ing *o
no*ice ,e*i*ionerQs car, he fai&ed *o a,,&+ his bra0es and did no* e-en swer-e *o
*he righ* *o a-oid *he co&&ision. The Co(r* of A,,ea&s confor%s wi*h aforesaid
/ndings of *he *ria& co(r* b(* is no* ,re,ared *o acce,* *ha* *here was gross
neg&igence on *he ,ar* of *he dri-er *o 1(s*if+ *he i%,osi*ion of eGe%,&ar+
da%ages. Kowe-er, a dri-er r(nning a* f(&& s,eed on a rain+ da+, on a s&i,,er+
road in co%,&e*e disregard of *he ha'ards *o &ife and &i%b of o*her ,eo,&e canno*
be said *o be ac*ing in an+*hing &ess *han gross neg&igence. The freC(en*
incidence of acciden*s of *his na*(re ca(sed b+ *aGi dri-ers indeed de%ands
correc*i-e %eas(res.