Professional Documents
Culture Documents
- Under Article 1745 (6), a common carrier is held responsible and will
not be allowed to divest or to diminish such responsibility even for acts
of strangers like thieves or robbers, except where such thieves or robbers
in fact acted "with grave or irresistible threat, violence or force."
- The armed men acted with grave, if not irresistible, threat, violence
or force. 3 Three (3) of the five (5) hold-uppers were armed with
firearms. The robbers not only took away the truck and its cargo but
also kidnapped the driver and his helper, detaining them for several
days.
Case #2
NATIONAL STEEL CORPORATION, petitioner, vs. COURT OF
APPEALS AND VLASONS SHIPPING, INC., respondents.
FACTS
-The MV Vlasons I is a vessel which renders tramping service and, as
such, does not transport cargo or shipment for the general public. It is
undisputed that the ship is a private carrier. And it is in this capacity that
its owner, Vlasons Shipping, Inc., entered into a contract of
affreightment or contract of voyage charter hire with National Steel
Corporation.
- Plaintiff National Steel Corporation (NSC) as Charterer and defendant
Vlasons Shipping, Inc. (VSI) as Owner, entered into a Contract of
Voyage Charter Hire whereby NSC hired VSIs vessel, the MV
VLASONS I to make one (1) voyage to load steel products at Iligan
City and discharge them at North Harbor, Manila
- Under paragraph 10 of the contract, it is provided that owners shall
exercise due diligence to make the vessel seaworthy and properly
manned, equipped and supplied. Owners shall not be liable for loss of or
damage o the cargo arising or resulting from unseaworthiness unless
caused by want of due diligence on the part of the owners; also provides
that owners shall not be responsible for any damage unless caused by
the negligence or default of the master and crew.
- MV VLASONS I loaded at plaintiffs pier at Iligan City, the NSCs
shipment of 1,677 skids of tinplates and 92 packages of hot rolled
sheets or a total of 1,769 packages-- shipment was placed in the three
(3) hatches of the ship.
-The vessel arrived with the cargo when the vessels three (3) hatches
containing the shipment were opened by plaintiffs agents, nearly all
the skids of tinplates and hot rolled sheets were allegedly found to be
wet and rusty. Unloading was completed after incurring a delay of 11
days due to the heavy rain
- It was reported that the rusting of the tinplates was caused by contact
with SEA WATER sustained while still on board the vessel as a
- Defendant denied liability for the alleged damage claiming that the MV
VLASONS was seaworthy in all respects for the carriage of plaintiffs
cargo; that said vessel was not a common carrier; that MVLASONS I
exercised due diligence and proper seamanship and were not willfully
negligent; that the stevedores of plaintiff who discharged the cargo in
Manila were negligent and did not exercise due care in the discharge of
the cargo
-It has been held that the true test of a common carrier is the carriage of
passengers or goods, provided it has space, for all who opt to avail
themselves of its transportation service for a fee. A carrier which does
not qualify under the above test is deemed a private carrier. Generally,
private carriage is undertaken by special agreement and the carrier does
not hold himself out to carry goods for the general public. The most
typical, although not the only form of private carriage, is the charter party,
a maritime contract by which the charterer, a party other than the
shipowner, obtains the use and service of all or some part of a ship for a
period of time or a voyage or voyages.
B. Burden of proof
- NSC must prove that the damage to its shipment was caused by
VSIs willful negligence or failure to exercise due diligence in making
MV Vlasons I seaworthy. This view finds further support in the
Code of Commerce (Art 361 and 362).
- Because the MV Vlasons I was a private carrier, the shipowners
obligations are governed by the foregoing provisions of the Code of
Commerce and not by the Civil Code which, as a general rule,
places the prima facie presumption of negligence on a common
carrier.
First issue: whether VSI exercised due diligence in making MV
Vlasons I seaworthy
-records reveal that VSI exercised due diligence to make the ship
seaworthy an fit for the carriage of NSCs cargo of steel and
tinplates. This is shown by the fact that it was drydocked and
inspected by the Philippine Coast Guard before it proceeded to
Iligan City-- cleared it as seaworthy, fitted and equipped
Second issue: whether the damage to the cargo should be
attributed to t willful negligence of the officers and crew of the
vessel or of the stevedores hired by NSC
-As noted earlier, the NSC had the burden of proving that the
damage to the cargo was caused by the negligence of the officers
and the crew of MV Vlasons I in making their vessel seaworthy and
fit for the carriage of tinplates. NSC failed to discharge this burden.
-Before us, NSC relies heavily on its claim that MV Vlasons I had
Not to hamper its operations, petitioner paid the tax under protest.
Petitioner wrote a letter addressed to the City Treasurer stating
that their company is a pipeline operator with a government
concession granted under the Petroleum Act. It is engaged in the
business of transporting petroleum products from the Batangas
refineries, via pipeline, to Sucat and JTF Pandacan Terminals.
Thus, their company is exempt from paying tax on gross receipts
under Section 133 of the Local Government Code of 1991
FACTS
ISSUE
RULE - YES
ISSUE
Common carriers, from the nature of their business and for reasons of
public policy, are bound to observe extraordinary diligence in the
vigilance over the goods and for the safety of the passengers
transported by them, according to all the circumstances of each case.
...
RULE - YES
FACTS
From the [Survey Report], it [is] clear that the shipment was
discharged from the vessel to the arrastre, Marina Port Services Inc.,
in good order and condition as evidenced by clean Equipment
Interchange Reports (EIRs). Had there been any damage to the
shipment, there would have been a report to that effect made by the
arrastre operator. xxx
Case #5
FGU INSURANCE CORPORATION, petitioner, vs. G.P. SARMIENTO
TRUCKING CORPORATION and LAMBERT M. EROLES,
respondents.
Facts:
G. P. S. Sarmiento Trucking Corporation (GPS) undertook to
deliver on June 18, 1994 30 units of Condura white
refrigerators aboard its Isuzu truck
The truck while traversing the north diversion road collided
with an unidentified truck, causing it to fall into a deep canal,
resulting in damage to the cargoes
FGU Insurance Corporation (FGU), an insurer paid to
Concepcion Industries the value of the covered caroges in the
sum of P204,450.
FGU sought reimbursement of the amouth it had paid to the
latter from GPS and filed a complaint against GPS and the
truck driver
GPS asserted that it was the exclusive hauler of Concepcion
Industries, Inc. since 1988 and it was not so engaged in
business ad common carrier and what caused the damage
was purely accidental.
Trial court dismissed complaint on the ground that FGU failed
to prove that GPS is a common carrier. Cour of Appeals also
rejected appeal of FG
Issues:
Whether GPS may be considered a common carrier as
defined under the law and existing jurisprudence
Whether GPS, either as common carrier or private carrier, may
be presumed to have been negligent when the goods it
Ruling:
On the first issue, the Court finds the conclusion of the trial court and
the Court of Appeals to be amply justified. GPS, being an exclusive
contractor and hauler of Concepcion Industries, Inc., rendering or
offering its services to no other individual or entity, cannot be
considered a common carrier. Common carriers are persons,
corporations, firms or associations engaged in the business of
carrying or transporting passengers or goods or both, by land, water,
or air, for hire or compensation, offering their services to the public,[8]
whether to the public in general or to a limited clientele in particular,
but never on an exclusive basis.[9] The true test of a common carrier
is the carriage of passengers or goods, providing space for those who
opt to avail themselves of its transportation service for a fee.[10]
Given accepted standards, GPS scarcely falls within the term
common carrier.
Case #6
Ruling:
Facts:
Issues:
Whether it is a private carrier or a common carrier
Whether it has observed the proper diligence (ordinary, if
private carrier, or extraordinary, if a common carrier) required
of it given the circumstances
for a limited clientele, undertaking to carry such goods for a fee. The
regularity of its activities in this area indicates more than just a casual
activity on its part.[6] Neither can the concept of a common carrier
change merely because individual contracts are executed or entered
into with patrons of the carrier. Such restrictive interpretation would
make it easy for a common carrier to escape liability by the simple
expedient of entering into those distinct agreements with clients.
Addressing now the issue of whether or not PKS Shipping has
exercised the proper diligence demanded of common carriers, Article
1733 of the Civil Code requires common carriers to observe
extraordinary diligence in the vigilance over the goods they carry. In
case of loss, destruction or deterioration of goods, common carriers
are presumed to have been at fault or to have acted negligently, and
the burden of proving otherwise rests on them.[7] The provisions of
Article 1733, notwithstanding, common carriers are exempt from
liability for loss, destruction, or deterioration of the goods due to any of
the following causes:
(1) Flood, storm, earthquake, lightning, or other natural
disaster or calamity;
(2) Act of the public enemy in war, whether international or
civil;
(3) Act or omission of the shipper or owner of the goods;
(4) The character of the goods or defects in the packing or in
the containers; and
(5) Order or act of competent public authority.[8]
The appellate court ruled, gathered from the testimonies and sworn
marine protests of the respective vessel masters of Limar I and MT
Iron Eagle, that there was no way by which the barges or the tugboats
crew could have prevented the sinking of Limar I. The vessel was
suddenly tossed by waves of extraordinary height of six (6) to eight (8)
feet and buffeted by strong winds of 1.5 knots resulting in the entry of
water into the barges hatches. The official Certificate of Inspection of
the barge issued by the Philippine Coastguard and the Coastwise
Load Line Certificate would attest to the seaworthiness of Limar I and
should strengthen the factual findings of the appellate court.
Case #7
ASIA LIGHTERAGE AND SHIPPING, INC., petitioner, vs. COURT OF
APPEALS and PRUDENTIAL GUARANTEE AND ASSURANCE,
INC., respondents.
Facts:
- Petitioner was contracted by General Milling Corporation
(consignee) as carrier to deliver 3,150 metric tons of Better Western
White Wheat in bulk to its warehouse in Pasig City. The shipment was
insured by the private respondent Prudential Guarantee and
Assurance, Inc. against loss or damage.
- The cargo was transferred to petitioner's custody on July 25, 1990. On August 15, 1990, 900 metric tons of the shipment was loaded on
barge PSTSI IIl for delivery. The cargo did not reach its destination.
- It appears that on August 17, 1990, the transport of said cargo was
suspended due to a warning of an incoming typhoon. On August 22,
1990, the petitioner proceeded to pull the barge to Engineering Island
off Baseco to seek shelter from the approaching typhoon. A few days
after, the barge developed a list because of a hole it sustained after
hitting an unseen protuberance underneath the water. Petitioner
secured the services of Gaspar Salvaging Corporation which refloated
the barge. The hole was then patched with clay and cement.
- Upon reaching the Sta. Mesa spillways, the barge again ran
aground due to strong current. To avoid the complete sinking of the
barge, a portion of the goods was transferred to 3 other barges. The
next day, the towing bits of the barge broke. It sank completely,
resulting in the total loss of the remaining cargo.
- A bidding was conducted to dispose of the damaged wheat retrieved
& loaded on the 3 other barges. Consignee sent a claim letter to the
petitioner, and another letter to the private respondent for the value of
the lost cargo.
Case #8
SPOUSES DANTE CRUZ and LEONORA CRUZ, Petitioners, vs.
SUN HOLIDAYS, INC., Respondent.
Facts:
- Spouses Dante and Leonora Cruz lodged a Complaint against Sun
Holidays, Inc. for damages arising from the death of their son Ruelito
C. Cruz (Ruelito) who perished with his wife on board the boat M/B
Coco Beach III that capsized en route to Batangas from Puerto
Galera, Oriental Mindoro where the couple had stayed at Coco Beach
Island Resort owned and operated by respondent.
- Matute, a scuba diver instructor, and 25 other Resort guests
including petitioners son and his wife trekked to the other side of the
Coco Beach mountain that was sheltered from the wind where they
boarded M/B Coco Beach III, which was to ferry them to Batangas.
- Shortly after the boat sailed, it started to rain. As it moved farther
away from Puerto Galera and into the open seas, the rain and wind
got stronger, causing the boat to tilt from side to side and the captain
to step forward to the front, leaving the wheel to one of the crew
members. The waves got more unwieldy. After getting hit by two big
waves which came one after the other, M/B Coco Beach III capsized
putting all passengers underwater.
- The passengers, who had put on their life jackets, struggled to get
out of the boat and reached the surface. Help came after about 45
minutes. Boarded on those two boats were 22 persons, consisting of
18 passengers and four crew members, who were brought to Pisa
Island. Eight passengers, including petitioners son and his wife, died
during the incident.
- Petitioners demanded indemnification from respondent for the death
of their son but denied any liability on the ground of fortuitous event.
- Petitioners then filed a complaint alleging that respondent, as a
common carrier, was guilty of negligence in allowing M/B Coco Beach
- That respondent does not charge a separate fee or fare for its ferry
services is of no moment. It would be imprudent to suppose that it
provides said services at a loss. The Court is aware of the practice of
beach resort operators offering tour packages to factor the
transportation fee in arriving at the tour package price. That guests
who opt not to avail of respondents ferry services pay the same
amount is likewise inconsequential. These guests may only be
deemed to have overpaid.
Case #9
Bascos vs. CA
Doctrine: Common carriers are obliged to observe extraordinary
diligence in the vigilance over the goods transported by them.
Facts:
Rodolfo Cipriano, representing CIPTRADE, entered into a hauling
contract with Jibfair Shipping Agency Corporation whereby the former
bound itself to haul the latters 2000m/tons of soya bean meal from
Manila to Calamba. CIPTRADE subcontracted with petitioner
EstrellitaBascos to transport and deliver the 400 sacks of soya beans.
Petitioner failed to deliver the cargo, and as a consequence, Cipriano
paid Jibfair the amount of goods lost in accordance with their contract.
PETITIONERS CONTENTION:
Petitioner denied that there was no contract of carriage since
CIPTRADE leased her cargo truck, and that the hijacking was a force
majeure. The trial court ruled against petitioner.
RESPONDENTS CONTENTION:
Cipriano demanded reimbursement from petitioner but the latter
refused to pay. Cipriano filed a complaint for breach of contract of
carriage.
Issue: Whether or not petitioner is a common carrier.
Ruling:
TRIAL COURT:
The trial court ruled against petitioner and granted the writ of
preliminary attachment for breach of contract of carriage.
CA:
The Court of Appeals affirmed the decision of the trial court, holding
that petitioner was a common carrier, found that she admitted in her
answer that she did business under the name A.M. Bascos Trucking
and that said admission dispensed with the presentation by private
SC:
Yes. Petitioner is a common carrier. SC ruled if favor of respondent.
(1) Article 1732 of the Civil Code defines a common carrier as "(a)
person, corporation or firm, or association engaged in the business of
carrying or transporting passengers or goods or both, by land, water
or air, for compensation, offering their services to the public." The test
to determine a common carrier is "whether the given undertaking is a
part of the business engaged in by the carrier which he has held out
to the general public as his occupation rather than the quantity or
extent of the business transacted." In this case, petitioner herself has
made the admission that she was in the trucking business, offering
her trucks to those with cargo to move. Judicial admissions are
conclusive and no evidence is required to prove the same.
Case #10
A. F. Sanchez Brokerage Inc. vs. CA & FGU Insurance Corp.
Doctrine:
A common carrier is liable to the resulting damage to the goods if the
improper packaging is known to the carrier or his employees or is
apparent upon ordinary observation, but he nevertheless accepts the
same without protest or exception.
Facts:
On July 8, 1992, Wyeth-Pharma GMBH shipped on board an aircraft
of KLM Royal Dutch Airlines Dusseldorf, Germany oral contraceptives
for delivery to Manila in favor of the consignee, Wyeth-Suaco
Laboratories, Inc. The latter insured the shipment against all risks with
FGU Insurance.
Upon arrival at NAIA, it was discharged without exception and
delivered to the warehouse of Philippine Skylanders Inc. (PSI) for
safekeeping. In order to release of the cargoes from the PSI and the
Bureau of Customs, Wyeth-Suaco engaged the services of A. F.
Sanchez Brokerage which had been its licensed broker since 1984.
As its customs broker, Sanchez Brokerage calculates and pays the
customs duties, taxes and storage fees for the cargo and thereafter
delivers it to Wyeth-Suaco.
Unfortunately, several cartons were heavily damaged with water and
emitted foul smell. Respondent FGU Insurance Corp. brought an
action for reimbursement against petitioner A. F Sanchez Brokerage
to collect the amount paid by the former Wyeth-Suaco as insurance
payment for the goods delivered in bad condition.
Sanchez Brokerage refused to admit liability for the damaged goods
which it delivered from PSI to Wyeth-Suaco. It maintained that the
damage was due to improper and insufficient export packaging.
RTC of Makati dismissed said complaint. However, the CA reversed
and set aside the same, finding that Sanchez Brokerage is liable for
the carriage of cargo as a common carrier.
Ruling:
Yes.
As defined under Article 1732, common carriers are persons,
corporations, firms or associations engaged in the business of
carrying or transporting passengers or goods or both, by land, water,
or air, for compensation, offering their services to the public. Article
1732 does not distinguish between one whose principal business
activity is the carrying of goods and one who does such carrying only
as an ancillary activity. The contention, therefore, of petitioner that it is
not a common carrier but a customs broker whose principal function is
to prepare the correct customs declaration and proper shipping
documents as required by law is bereft of merit. It suffices that
petitioner undertakes to deliver the goods for pecuniary consideration.
Case #11
Crisostomo vs CA
August 25, 2003
FACTS:
May 1991 Petitioner Estela L. Crisostomo contracted the services
of respondent Caravan Travel and Tours International, Inc. to
arrange and facilitate her booking, ticketing and accommodation in
a tour dubbed Jewels of Europe.
The package tour included the countries of England, Holland,
Germany, Austria, Liechstenstein, Switzerland and France at a
total cost of P74,322.70.
Petitioner was given a 5% discount on the amount, and the booking
fee was also waived because petitioners niece, Meriam Menor,
was respondent companys ticketing manager.
June 12, 1991 (Wed) Menor went to her aunts home to deliver
petitioners travel documents and plane tickets. Menor paid the full
payment for the package tour. Menor then told Crisostomo to be at
the NAIA on Saturday.
Without checking her travel documents, petitioner went to NAIA on
Saturday, June 15, 1991, to take the flight for the first leg of her
journey from Manila to Hongkong.
She learned that her plane ticket was for the flight scheduled on
June 14, 1991. She thus called up Menor to complain.
Menor prevailed upon petitioner to take another tour the British
Pageant which included England, Scotland and Wales in its
itinerary. For this tour package, petitioner was asked anew to pay
US$785.00 or P20,881.00.
Upon petitioners return from Europe, she demanded from
respondent the reimbursement of P61,421.70, representing the
difference between the sum she paid for Jewels of Europe and the
amount she owed respondent for the British Pageant tour.
Despite several demands, respondent company refused to
reimburse.
PETITIONERS CONTENTION:
Petitioner alleged that her failure to join Jewels of Europe was due
to respondents fault since it did not clearly indicate the departure
date on the plane ticket.
She could not be deemed more negligent than respondent since
the latter is required by law to exercise extraordinary diligence in
the fulfillment of its obligation (as a common carrier).
RESPONDENTS CONTENTION:
Petitioner was informed of the correct departure date, which was
clearly and legibly printed on the plane ticket.
ISSUE:
W/N Caravan Travel did not observe the standard of care required
of a common carrier when it informed the petitioner wrongly of the
flight schedule
RULING:
NO. Petition has no merit.
By definition, a contract of carriage or transportation is one
whereby a certain person or association of persons obligate
themselves to transport persons, things, or news from one place to
another for a fixed price. Such person or association of persons are
regarded as carriers and are classified as private or special carriers
and common or public carriers. A common carrier is defined under
Article 1732 of the Civil Code as persons, corporations, firms or
associations engaged in the business of carrying or transporting
passengers or goods or both, by land, water or air, for
compensation, offering their services to the public.
It is obvious from the above definition that respondent is not an
entity engaged in the business of transporting either passengers or
goods and is therefore, neither a private nor a common carrier.
Respondent did not undertake to transport petitioner from one
place to another since its covenant with its customers is simply to
make travel arrangements in their behalf. Respondents services as
a travel agency include procuring tickets and facilitating travel
permits or visas as well as booking customers for tours.
While petitioner concededly bought her plane ticket through the
efforts of respondent company, this does not mean that the latter
Case #12
Asian Terminals, Inc. vs. Daehan Fire and Marine Insurance Co., Ltd.
February 4, 2004
FACTS:
On July 8, 2000, Doosan Corporation (Doosan) shipped twenty-six
(26) boxes of printed aluminum sheets on board the vessel Heung-A
Dragon owned by Dongnama Shipping Co., Ltd. (Dongnama) and
consigned to Access International.
Doosan insured the subject shipment with respondent Daehan Fire
and Marine Insurance Co., Ltd. under an all-risk marine cargo
insurance policy, payable to its settling agent in the Philippines, the
Smith Bell & Co., Inc. (Smith Bell).
On July 12, 2000, the vessel arrived in Manila and the containerized
van was discharged and unloaded in apparent good condition, as no
survey and exceptions were noted in the Equipment Interchange
Receipt (EIR) issued by Asian Terminals as arrastre operator. The
container van was stored in the Container Yard of the Port. On July
18, 2000, Access International requested from petitioner and the
licensed Customs Broker, Victoria Reyes Lazo (V. Reyes Lazo), a
joint survey of the shipment at the place of storage in the Container
Yard, but no such inspection was conducted.
On July 19, 2000, V. Reyes Lazo withdrew, and petitioner released,
the shipment and delivered it to Access Internationals warehouse in
Binondo, Manila.
While the shipment was at Access Internationals warehouse, the
latter, together with its surveyor, Lloyds Agency, conducted an
inspection and noted that only twelve (12) boxes were accounted
for, while fourteen (14) boxes were missing.
Access International thus filed a claim against petitioner and V.
Reyes Lazo for the missing shipment amounting to $34,993.28.
On July 10, 2001, respondent, represented by Smith Bell, instituted
the present case against Dongnama, Uni-ship, Inc. (Uni-ship),
petitioner, and V. Reyes Lazo before the RTC
PETITIONERS CONTENTION:
Petitioner denies liability for the loss of the subject shipment,
considering that the consignees representative signified receipt of
the goods in good order without exception. This being the case,
respondent, as subrogee, is bound by such acknowledgment.
RESPONDENTS CONTENTION:
Respondent alleged that the losses, shortages and short deliveries
sustained by the shipment were caused by the joint fault and
negligence of Dongnama, petitioner and V. Reyes Lazo.
ISSUE:
W/N Asian Terminals, Inc. should be liable for the loss of the
shipment notwithstanding consignee brokers acknowledgement
that the shipment was in good order
RULING:
YES. Respondent, as insurer, was subrogated to the rights of the
consignee, pursuant to the subrogation receipt executed by the
latter in favor of the former. The relationship, therefore, between the
consignee and the arrastre operator must be examined. This
relationship is akin to that existing between the consignee and/or
the owner of the shipped goods and the common carrier, or that
between a depositor and a warehouseman.
In the performance of its obligations, an arrastre operator should
observe the same degree of diligence as that required of a common
carrier and a warehouseman. Being the custodian of the goods
discharged from a vessel, an arrastre operators duty is to take good
care of the goods and to turn them over to the party entitled to their
possession.
Case #13
Facts:
6. In their defense, Sps. Pereas assailed that they had exercised the
diligence of a good father of the family in the selection and
supervision of Alfaro, by making sure that Alfaro had been issued a
drivers license and had not been involved in any vehicular accident
prior to the collision. For its part, PNR showed that the proximate
cause of the collision had been the reckless crossing of the van
whose driver had not first stopped, looked and listened; and that the
narrow path traversed by the van had not been intended to be a
railroad crossing for motorists.
7. The RTC ruled in favor of the Zarates on the grounds that the
cooperative gross negligence of the Pereas and PNR had caused
the collision that led to the death of Aaron. The CA concurred with the
RTCs decision.
Issues:
wanted to be if not for his untimely death, but the minimum wage in
effect at the time of his death.
Case #14
Facts:
4.Yangco Co. and its officers stood firm on their ground to decline and
refuse to the carriage of such explosives. The contention of petitioner
is that a common carrier in the Philippine Islands may decline to
accept for carriage any shipment of merchandise of a class which it
expressly or impliedly declines to accept from all shippers alike,
because as he contends "the duty of a common carrier to carry for all
who offer arises from the public profession he has made, and limited
by it."
Issue:
Case #15
U.S. vs. Quinajon
Facts:
Issue:
Ruling:
The Court ruled that defendants did not violated Act No. 98.
It is only unjust, undue and unreasonable discrimination which
the law forbids.
The law of equality is in force only where the services
performed in the different cases are substantially the same,
and the circumstances and conditions are similar.
Case #16
Issues:
Ruling:
Yes. While it is true that the vessel had on board only the
cargo of wood products for delivery to one consignee, it was
also carrying passengers as part of its regular business.
No. the vessel was not seaworthy nor was it sufficiently
manned. This is a breach of a common carriers duty.
Case # 17
G.R. No. L-25599
April 4, 1968
liable for loss or damage to the goods caused by personal want of due
diligence on its part or its manager to make the vessel in all respects
seaworthy and to secure that she be properly manned, equipped and
supplied or by the personal act or default of the owner or its manager.
Said paragraph, however, exempts the owner of the vessel from any
loss or damage or delay arising from any other source, even from the
neglect or fault of the captain or crew or some other person employed
by the owner on board, for whose acts the owner would ordinarily be
liable except for said paragraph.
Case # 18
G.R. No. L-61461
ISSUE:
whether a land transportation company can be authorized to operate
a ferry service or coastwise or interisland shipping service along its
RULING:
Considering the environmental circumstances of the case, the
conveyance of passengers, trucks and cargo from Matnog to Allen is
certainly not a ferry boat service but a coastwise or interisland
shipping service. Under no circumstance can the sea between
Matnog and Allen be considered a continuation of the highway.
The water transport service between Matnog and Allen is not a ferry
boat service but a coastwise or interisland shipping service. Before
private respondent may be issued a franchise or CPC for the
operation of the said service as a common carrier, it must comply with
the usual requirements of filing an application, payment of the fees,
publication, adducing evidence at a hearing and affording the
oppositors the opportunity to be heard, among others, as provided by
law.
Case # 19
National Steel Corporation v Vlasons Shipping Inc (VSI) and CA
FACTS
- The Court finds occasion to apply the rules on the
seaworthiness of private carrier, its owner's responsibility for
damage to the cargo and its liability for demurrage and
attorney's fees
- two separate petitions for review filed by National Steel
Corporation (NSC) and Vlasons Shipping, Inc. (VSI), both of
which assail the August 12, 1993 Decision of the Court of
Appeals.
- The MV Vlasons I is a vessel which renders tramping service
and, as such, does not transport cargo or shipment for the
general public. Its services are available only to specific
persons who enter into a special contract of charter party with
its owner.
- The ships owner, Vlasons Shipping, Inc., entered into a
contract of affreightment or contract of voyage charter hire with
National Steel Corporation:
o 10.
Other terms: (a) All terms/conditions of
NONYAZAI C/P [sic] or other internationally recognized
Charter Party Agreement shall form part of this
Contract.
- The terms "F.I.O.S.T." which is used in the shipping business
is a standard provision in the NANYOZAI Charter Party which
stands for "Freight In and Out including Stevedoring and
Trading", which means that the handling, loading and
unloading of the cargoes are the responsibility of the
Charterer.
o "Charterers to load, stow and discharge the cargo free
of risk and expenses to owners. . . . (Emphasis
supplied).
o Under paragraph 10 thereof, it is provided that
"(o)wners shall, before and at the beginning of the
voyage, exercise due diligence to make the vessel
-
ISSUE:
Whether or not the provisions of the Civil Code of the Philippines on
common carriers pursuant to which there exist[s] a presumption of
negligence against the common carrier in case of loss or damage to
the cargo are applicable to a private carrier.
all other parts of the vessel in which cargo [was] carried, fit
and safe for its reception, carriage and preservation."
[o]wners shall not be responsible for split, chafing and/or any
damage unless caused by the negligence or default of the
master or crew."
Burden of Proof
- NSC must prove that the damage to its shipment was caused
by VSI's willful negligence or failure to exercise due diligence
in making MV Vlasons I seaworthy and fit for holding, carrying
and safekeeping the cargo. Ineluctably, the burden of proof
was placed on NSC by the parties' agreement.
- This finds proof in the Code of Commercse, Art. 361
o Art. 361.
Merchandise shall be transported at the
risk and venture of the shipper, if the contrary has not
been expressly stipulated.
- Because the MV Vlasons I was a private carrier, the
shipowner's obligations are governed by the foregoing
provisions of the Code of Commerce and not by the Civil Code
which, as a general rule, places the prima facie presumption of
negligence on a common carrier.
- In an action against a private carrier for loss of, or injury to,
cargo, the burden is on the plaintiff to prove that the carrier
was negligent or unseaworthy, and the fact that the goods
were lost or damaged while in the carrier's custody does not
put the burden of proof on the carrier.
- Since . . . a private carrier is not an insurer but undertakes only
to exercise due care in the protection of the goods committed
to its care, the burden of proving negligence or a breach of
that duty rests on plaintiff and proof of loss of, or damage to,
cargo while in the carrier's possession does not cast on it the
burden of proving proper care and diligence on its part or that
the loss occurred from an excepted cause in the contract or bill
of lading. since the carrier is in a better position to know the
cause of the loss and that it was not one involving its liability,
the law requires that it come forward with the information
available to it, and its failure to do so warrants an inference or
presumption of its liability.
Case # 20
Planters Products Inc (PPI) v Soriamont Steamship Agencies
& Kyosei Kisen Kabushiki Kaisha and CA
FACTS
- Planters Products, Inc. (PPI), purchased from Mitsubishi
International Corporation (MITSUBISHI) of New York, U.S.A.,
Urea fertilizer which the latter shipped in bulk on 16 June 1974
aboard the cargo vessel M/V "Sun Plum" owned by private
respondent (KKKK) to Poro Point, San Fernando La Union,
PH.
- prior to its voyage, a time charter-party on the vessel M/V "Sun
Plum" pursuant to the Uniform General Charter 2 was entered
into between Mitsubishi as shipper/charterer and KKKK as
shipowner, in Tokyo, Japan.
- Before loading the fertilizer aboard the vessel, four (4) of her
holds 4 were all presumably inspected by the charterer's
representative and found fit to take a load of urea in bulk
- After the Urea fertilizer was loaded in bulk by stevedores hired
by and under the supervision of the shipper, the steel hatches
were closed with heavy iron lids, covered with three (3) layers
of tarpaulin, then tied with steel bonds. The hatches remained
closed and tightly sealed throughout the entire voyage.
- Upon arrival of the vessel at her port of call on 3 July 1974, the
steel pontoon hatches were opened with the use of the
vessel's boom. Petitioner unloaded the cargo from the holds
into its steelbodied dump trucks
- It took eleven (11) days for PPI to unload the cargo, from 5
July to 18 July 1974 (except July 12th, 14th and 18th). A
private marine and cargo surveyor, Cargo Superintendents
Company Inc. (CSCI), was hired by PPI to determine the
"outturn" of the cargo shipped, by taking draft readings of the
vessel prior to and after discharge.
o The report revealed a shortage in the cargo of 106.726
M/T and that a portion of the Urea fertilizer
-
ISSUE
whether a common carrier becomes a private carrier by reason of a
charter-party;
in the negative, whether the shipowner in the instant case was able to
prove that he had exercised that degree of diligence required of him
under the law.
HELD:
Case # 21
GOVERNMENT REGULATION OF COMMON CARRIERS
BUSINESS
KMU Labor Center v. Garcia, Jr. (G.R. No. 115381)
FACTS:
Then DOTC Sec. Oscar M. Orbos, issued Memorandum
Circular to then LTFRB Chairman, Remedios A.S. Fernando
allowing provincial bus operators to charge passengers rates
within a range of 15% above and 15% below the LTFRB
official rate for a period of one (1) year.
Private respondent Provincial Bus Operators Association of
the Philippines, Inc. (PBOAP) filed an application for fare rate
increase. An across-the-board increase of P0.085 per
kilometer for all types of provincial buses with a minimummaximum fare range of fifteen (15%) percent over and below
the proposed basic per kilometer fare rate, with the said
minimum-maximum fare range applying only to ordinary, first
class and premium class buses and P0.50 minimum per
kilometer fare for aircon buses, was sought. Due to the drop in
the price of diesel, PBOAP later reduced its applied proposed
fare to an across-the-board increase of P0.065 centavos per
kilometer for ordinary buses.
Public respondent LTFRB rendered a decision granting the
fare rate increase.
Then DOTC Sec. Pete Nicomedes Prado issued a Department
Order defining the policy framework on the regulation of
transport services which provided that Passenger fares shall
also be deregulated, except for the lowest class of passenger
service (normally third class passenger transport) for which the
government will fix indicative or reference fares. Operators of
particular services may fix their own fares within a range 15%
above and below the indicative or reference rate.
Given the task of determining sensitive and delicate matters as routefixing and rate-making for the transport sector, the responsible
regulatory body is entrusted with the power of subordinate legislation.
Case # 22
Tatad v. Garcia, Jr. (G.R. No. 114222)
FACTS:
DOTC planned to construct a light railway transit line along
EDSA, a major thoroughfare in Metropolitan Manila, which
shall traverse the cities of Pasay, Quezon, Mandaluyong and
Makati. The plan was referred to as EDSA LRT III.
Pres. Corazon Aquino signed the Build-Operate-Transfer
(BOT) Law which provided for two schemes for the financing,
construction and operation of government projects through
private initiative and investment: Build-Operate-Transfer (BOT)
or Build-Transfer (BT).
In accordance with the BOT law and the EDSA LRT III, the
DOTC issued Department Orders which created the
Prequalification Bids and Awards Committee (PBAC) and the
Technical Committee.
Of the five applicants, only the EDSA LRT Corp. Ltd., a private
corporation organized under the laws of Hong Kong, met the
requirements of the prequalification bids set by the PBAC.
Executive Secretary Franklin Drilon informed DOTC Secretary
Prado that the President could not grant the requested
approval because the DOTC failed to conduct actual public
bidding in compliance with Section 5 of the BOT Law. The
agreement was then re-negotiated.
Under the agreement, upon full or partial completion and
viability thereof, private respondent shall deliver the use and
possession of the completed portion to DOTC which shall
operate the same. DOTC shall pay private respondent rentals
on a monthly basis through an Irrevocable Letter of Credit.
What private respondent owns are the rail tracks, rolling stocks like
the coaches, rail stations, terminals and the power plant, not a public
utility. While a franchise is needed to operate these facilities to serve
the public, they do not by themselves constitute a public utility. What
constitutes a public utility is not their ownership but their use to serve
the public.
Since DOTC shall operate the EDSA LRT III, it shall assume all the
obligations and liabilities of a common carrier. Hence, EDSA LRT III
will not run the light rail vehicles and collect fees from the riding
public. It will have no dealings with the public and the public will have
no right to demand any services from it.
Case # 23
SAMAR MINING COMPANY, INC. vs. NORDEUTSCHER LLOYD ,
C.F. SHARP & COMPANY, INC.
(G.R. No. L-28673 October 23, 1984)
FACTS:
-
Nordeutscher Lloyd and C.F. Sharp & Co. appealed from said
decision.
ISSUE:
Whether or not a stipulation in the bill of lading exempting the carrier
from liability for loss of goods not in its actual custody (i.e., after their
discharge from the ship) is valid.
HELD:
We find merits in Nordeutschers contention that they are not liable for
the loss of the subject goods by claiming that they have discharged
the same in full and good condition unto the custody of AMCYL at the
port of discharge from ship Manila, and therefore, pursuant to the
aforequoted stipulation (Sec. 11) in the bill of lading, their
responsibility for the cargo had ceased.
received by the carrier for transportation until the same are delivered,
actually or constructively, by the carrier to the consignee, or to the
person who has a right to receive them, without prejudice to the
provisions of article 1738.
Art. 1738 finds no applicability to the instant case. However, Article
1736 is applicable to the instant suit. Under said article, the carrier
may be relieved of the responsibility for loss or damage to the goods
upon actual or constructive delivery of the same by the carrier to the
consignee, or to the person who has a right to receive them. There is
actual delivery in contracts for the transport of goods when
possession has been turned over to the consignee or to his duly
authorized agent and a reasonable time is given him to remove the
goods. In the present case, there was actual delivery to the consignee
through its duly authorized agent, the carrier.
Lastly, two undertakings are embodied in the bill of lading: the
transport of goods from Germany to Manila, and the transshipment of
the same goods from Manila to Davao, with Samar Mining acting as
the agent of the consignee. The moment the subject goods are
discharged in Manila, Samar Minings personality changes from that
of carrier to that of agent of the consignee. Such being the case, there
was, in effect, actual delivery of the goods from appellant as carrier to
the same appellant as agent of the consignee. Upon such delivery,
the appellant, as erstwhile carrier, ceases to be responsible for any
loss or damage that may befall the goods from that point onwards.
This is the full import of Article 1736.
But even as agent of the consignee, the appellant cannot be made
answerable for the value of the missing goods. It is true that the
transshipment of the goods, which was the object of the agency, was
not fully performed. However, appellant had commenced said
performance, the completion of which was aborted by circumstances
beyond its control. An agent who carries out the orders and
instructions of the principal without being guilty of negligence, deceit
or fraud, cannot be held responsible for the failure of the principal to
accomplish the object of the agency.
Case # 24
EASTERN SHIPPING LINES, INC. vs. INTERMEDIATE
APPELLATE COURT
(G.R. No. L-69044 May 29, 1987)
FACTS:
- Sometime in or prior to June, 1977, the M/S ASIATICA, a
vessel operated by petitioner Eastern Shipping Lines, Inc.,
(referred to hereinafter as Petitioner Carrier) loaded at Kobe,
Japan for transportation to Manila, 5,000 pieces of calorized
lance pipes in 28 packages valued at P256,039.00 consigned
to Philippine Blooming Mills Co., Inc., and 7 cases of spare
parts valued at P92,361.75, consigned to Central Textile Mills,
Inc. Both sets of goods were insured against marine risk for
their stated value with respondent Development Insurance and
Surety Corporation.
- Enroute for Kobe, Japan, to Manila, the vessel caught fire and
sank, resulting in the total loss of ship and cargo.
- The respective respondent Insurers paid the corresponding
marine insurance values to the consignees concerned and
were thus subrogated unto the rights of the latter as the
insured.
- On May 11, 1978, respondent Development Insurance &
Surety Corporation having been subrogated unto the rights of
the two insured companies, filed suit against petitioner Carrier
for the recovery of the amounts it had paid to the insured.
- Petitioner-Carrier denied liability mainly on the ground that the
loss was due to an extraordinary fortuitous event, hence, it is
not liable under the law.
- On August 31, 1979, the Trial Court rendered judgment in
favor of Development Insurance. Petitioner Carrier took an
appeal to the then Court of Appeals which, on August 14,
1984, affirmed.
- Petitioner Carrier is now before us on a Petition for Review on
Certiorari.
ISSUE:
(1) Which law should govern the Civil Code provisions on
Common carriers or the Carriage of Goods by Sea Act?
(2) Who has the burden of proof to show negligence of the
carrier?
RULING:
On the Law Applicable
Under the Civil Code, particularly Article 1733, common carriers, from
the nature of their business and for reasons of public policy, are
bound to observe extraordinary diligence in the vigilance over goods,
according to all the circumstances of each case. Common carriers are
responsible for the loss, destruction, or deterioration of the goods
unless the same is due to any of the following causes only:
xxx
xxx
(1)
Flood, storm, earthquake, lightning or other natural disaster or
calamity;
xxx
Petitioner Carrier claims that the loss of the vessel by fire exempts it
from liability under the phrase "natural disaster or calamity. "
Case # 25
National Development Company vs CA
FACTS
-National Development Company (NDC) and Maritime Company of
the Philippines (MCP) entered into a memorandum agreement. NDC
appointed MCP as its agent in managing and operating the Dona
Nati vessel
-E. Philipp Corporation loaded on board the vessel 1200 bales of
American raw cotton consigned to the order of Manila Banking
Corporation, Manila and the Peoples Bank and Trust Company acting
for and in behalf of the Pan Asiatic Commercial Company, Inc., who
represents Riverside Mills Corporation also loaded on the same
vessel were the cargo of Kyokuto Boekui, Kaisa, Ltd., consigned to
the order of Manila Banking Corporation consisting of 200 cartons of
sodium lauryl sulfate and 10 cases of aluminum foil
- On its way to Manila from San Francisco, the vessel figured in a
collision with a Japanese vessel on Japanese waters. As a result of
which, 550 bales that were loaded in the Dona Nati vessel were
destroyed as well as cargo of the Lyokuto Boekui, Kaisa, Ltd.
-The damages and lost cargoes were all covered by the companys
insurer Development Insurance and Surety Corp.
- Development Insurance & Surety Corp, who paid for the insurance
filed an action for recovery of money against NDC and MCP
ISSUE: W/N the law of country or port of destination shall apply. (In
this case, Manila)
HELD: In jurisprudence the Supreme Court held under similar
circumstances that the law of the country to which the goods are to be
transported governs the liability of the common carrier in case of their
Case # 26
GELISAN VS ALDAY
FACTS:
-Robert Espiritu entered into a contract with Gelisan for the use of
Gelisans freight truck for the purpose of hauling rice, sugar, rice and
fertilizer. They had an agreement that the number total number of
sacks to be loaded should not exceed 200 sacks. Espiritu should also
bear all losses and damages that would arise from such carriage. The
truck was then used by Espiritu.
- Benito Alday is a trucking operator involved with delivery of fertilizers
made by Altas Fertilizers Corp. Espiritu offered the use of his truck to
Alday and Alday agreed. Alday then delivered all the fertilizers to
Espiritu. Espiritu failed to deliver such fertilizers to the bodega of Altas
Fertilizers Corporation as what was originally agreed upon.
-Alday then saw Espiritus truck and notified the MPD who
consequently impounded Espiritus truck
-Alday was also compelled by Altas Fertilizers Corp to pay for the loss
of the fertilizers. Thus, he filed for a complaint against Gelisan and
Espiritu
-Gelisan, on his part claimed that he had no part in the contractual
relations of Alday and Espiritu thus should be exempted from liability
as he had a valid contract lease with Espiritu.
ISSUE: W/N Gelisan as the registered owner of the freight truck is still
lliable
HELD: As the registered owner of a public service vehicle, Gelisan
should be responsible for all damages that may arise as
consequences of the operation of their service. The claim of the
petitioner that he is not liable in view of the lease contract executed by
and between him and Espiritu which exemptshim from liability to third
persons, cannot be sustained because it appears that the lease
contract had not been approved by the Public Service Commission.
Since the lease is without approval Gelisan still continued to be the
operator in contemplation of law and thus should be jointly and
severally liable with the drive for damages incurred. Gelisan, on his
part, may claim against Espiritu after settling their liabilities to Alday.
Case # 27
G.R. No. 70876 July 19, 1990
BENEDICTO vs. IAC
FELICIANO, J.:
Facts:
Private respondent Greenhills, a lumber manufacturing firm with
business address at Dagupan City, operates sawmill in Maddela,
Quirino.
Sometime in May 1980, private respondent bound itself to sell and
deliver to Blue Star, a company with business operations in
Valenzuela, Bulacan 100,000 board feet of sawn lumber with the
understanding that an initial delivery would be made on 15 May
1980.
To effect its first delivery, private respondent's resident manager in
Maddela, Dominador Cruz, contracted Virgilio Licuden, the driver of
a cargo truck bearing Plate No. 225 GA TH to transport its sawn
lumber to the consignee Blue Star in Valenzuela, Bulacan. This
cargo truck was registered in the name of petitioner Ma. Luisa
Benedicto, the proprietor of Macoven Trucking, a business
enterprise engaged in hauling freight, with main office in B.F.
Homes, Paraaque.
On 16 May 1980, the Manager of Blue Star called up by long
distance telephone Greenhills' president, Henry Lee Chuy, informing
him that the sawn lumber on board the subject cargo truck had not
yet arrived in Valenzuela, Bulacan. The latter in turn informed
Greenhills' resident manager in its Maddela saw-mill of what had
happened.
In a letter 5 dated 18 May 1980, Blue Star's administrative and
personnel manager, Manuel R. Bautista, formally informed
Greenhills' president and general manager that Blue Star still had
not received the sawn lumber which was supposed to arrive on 15
May 1980 and because of this delay, "they were constrained to look
for other suppliers."
On 25 June 1980, after confirming the above with Blue Star and
after trying vainly to persuade it to continue with their contract,
private respondent Greenhill's filed Criminal Case No. 668 against
driver Licuden for estafa. Greenhills also filed against petitioner
Benedicto Civil Case No. D-5206 for recovery of the value of the lost
sawn lumber plus damages before the RTC of Dagupan City.
In her answer, petitioner Benedicto denied liability alleging that she
was a complete stranger to the contract of carriage, the subject
truck having been earlier sold by her to Benjamin Tee, on 28
February 1980 as evidenced by a deed of sale. She claimed that the
truck had remained registered in her name notwithstanding its
earlier sale to Tee because the latter had paid her only P50,000.00
out of the total agreed price of P68,000.00 However, she averred
that Tee had been operating the said truck in Central Luzon from
that date (28 February 1980) onwards, and that, therefore, Licuden
was Tee's employee and not hers.
Issue: Whether or not the petitioner, being the registered owner of the
carrier, should be held liable for the value of the undelivered or lost
sawn lumber.
Case # 28
[G.R. No. 120553. June 17, 1997]
PHILTRANCO SERVICE ENTERPRISES vs. COURT OF APPEALS
DAVIDE, JR., J.:
Facts:
In the early morning of March 24, 1990, about 6:00 o'clock, the
victim Ramon A. Acuesta was riding in his easy rider bicycle, along
the Gomez Street of Calbayog City. The Gomez Street is along the
side of Nijaga Park.
On the Magsaysay Blvd., also in Calbayog City, defendant
Philtranco, Bus No. 4025 with plate No. EVA-725 driven by
defendant Rogasiones Manilhig y Dolira was being pushed by some
persons in order to start its engine. The Magsaysay Blvd. runs
perpendicular to Gomez St. and the said Philtranco bus 4025 was
heading in the general direction of the said Gomez Street.
As the bus was pushed, its engine started thereby the bus
continued on its running motion and it occurred at the time when
Ramon A. Acuesta who was still riding on his bicycle was directly in
front of the said bus. As the engine of the Philtranco bus started
abruptly and suddenly, its running motion was also enhanced by the
said functioning engine, thereby the subject bus bumped on the
victim Ramon A. Acuesta who, as a result thereof fell and,
thereafter, was run over by the said bus.
Issue: Whether or not Philtranco can be held liable.
Held: Yes.
We have consistently held that the liability of the registered owner of a
public service vehicle, like petitioner Philtranco, for damages arising
from the tortious acts of the driver is primary, direct, and joint and
several or solidary with the driver. As to solidarity, Article 2194
expressly provides:
ART. 2194. The responsibility of two or more persons who are liable
for a quasi-delict is solidary.
Since the employer's liability is primary, direct and solidary, its only
recourse if the judgment for damages is satisfied by it is to recover
what it has paid from its employee who committed the fault or
negligence which gave rise to the action based on quasi-delict. Article
2181 of the Civil Code provides:
ART. 2181. Whoever pays for the damage caused by his dependents
or employees may recover from the latter what he has paid or
delivered in satisfaction of the claim.
Case # 29
Equitable Leasing Corporation vs. Lucita Suyom, Marissa Enano,
Myrna Tamayo and Felix Oledan
GR No. 143360, September 05, 2002
FACTS:
RULING:
Yes, Equitable Leasing is liable. The petition is denied and the CA
decision is affirmed.As the registered owner of the tractor, Equitable
Leasing is liable for the acts of Raul Tutor even if he was actually the
employee of Equitables former lessee, Ecatine Corporation, who
became the actual owner of the tractor by virtue of a deed of sale not
registered with the LTO.
Regardless of sales made of a motor vehicle, the registered owner is
the lawful operator insofar as the public and third persons are
concerned; consequently, it is directly and primarily responsible for
the consequences of its operation. In the eyes of the law, the
owner/operator of record is the employer of the driver, the actual
owner/operator being considered as merely the agent of the
registered owner/operator. The principle applies even if the registered
owner of any vehicle does not use it for public service.The main aim
of motor vehicle registration is to identify the owner so that if any
accident happens, or any damage or injury is caused by the vehicle,
responsibility can be fixed on a definite individual, the registered
owner. Failure to register the deed of sale should not prejudice
victims, who have the right to rely on the principle that the registered
owner is liable for damages caused by the negligence of the driver.
Equitable Leasing cant hide behind the allegation that Tutor was
Ecatine Corps employee, because it will prevent victims from
recovering their loss on the basis of Equitables inaction in failing to
register the sale. The non-registration is Equitables fault, which
should face the legal consequences thereof.
Case # 30
Santos vs. Sibug Case Digest
Santos vs. Sibug
(104 SCRA 520)
Facts: Petitioner Adolfo Santos was the owner of a passenger jeep,
but he had no certificate of public conveyance for the operation of the
vehicle as a public passenger jeep. Santos then transferred his jeep
to the name of Vidad so that it could be operated under the latters
certificate of public convenience. In other words, Santos became what
is known as kabit operator. Vidad executed a re-transfer document
presumably to be registered it and when it was decided that the
passenger jeep of Santos was to be withdrawn from kabit
arrangement.
On the accident date, Abraham Sibug was bumped by the said
passenger jeep.
Issue: Whether the Vidad is liable being the registered owner of the
jeepney?
Held: As the jeep in question was registered in the name of Vidad, the
government or any person affected by the representation that said
vehicle is registered under the name of the particular person had the
right to rely on his declaration of his ownership and registration. And
the registered owner or any other person for that matter cannot be
permitted to repudiate said declaration with the objective of proving
that the said registered vehicle is owned by another person and not by
the registered owner.
Santos, as the kabit, should not be allowed to defeat the levy in his
vehicle and to avoid his responsibility as a kabit owner for he had led
the public to believe that the vehicle belongs to Vidad. This is one way
of curbing the pernicious kabit system that facilitates the commissions
of fraud against the traveling public.
Case # 31
LITA ENTERPRISES, INC., vs.SECOND CIVIL CASES DIVISION,
INTERMEDIATE APPELLATE COURT, NICASIO M. OCAMPO and
FRANCISCA P. GARCIA,
1. Spouses Nicasio M. Ocampo and Francisca Garcia, purchased in
installment from the Delta Motor Sales Corporation five (5) Toyota
Corona Standard cars to be used as taxicabs.
2. Since they had no franchise to operate taxicabs, they contracted
with petitioner Lita Enterprises, Inc.,for the use of the latter's
certificate of public convenience in consideration payment and rent of
P200.00 per taxicab unit.
3. To effectuate the agreement, the aforesaid cars were registered to
Lita Enterprises, Inc, Possession, however, remained with tile
spouses Ocampo who operated and maintained the same
4. About a year later, one of said taxicabs driven by their employee,
Emeterio Martin, collided with a motorcycle whose driver, one
Florante Galvez, died from the head injuries sustained therefrom. A
civil case for damages was instituted by Rosita Sebastian Vda. de
Galvez, heir of the victim, against Lita Enterprises, Inc., as registered
owner of the taxicab in the latter case
5. Thereafter, in March 1973, respondent Nicasio Ocampo decided to
register his taxicabs in his name. He requested the manager of
petitioner Lita Enterprises, Inc. to turn over the registration papers to
him, but the latter allegedly refused. Hence, he and his wife filed a
complaint against Lita Enterprises, Inc., for reconveyance of motor
vehicles
6. The Court of First Instance of Manila rendered a decision,
Defendant Lita Enterprises, Inc., is ordered to transfer the registration
certificate of the three Toyota cars
ISSUE: Whether or not the the courts erred in giving the parties relief,
not recognizing that the kabit system is against public policy?
Case # 32
TEJA MARKETING AND/OR ANGEL JAUCIA
v.
HONORABLE INTERMEDIATE APPELLATE COURT (AND PEDRO
N. NALE)
FACTS:
The defendant, Pedro N. Nale, bought from the plaintiff, Teja
Marketing, a motorcycle with complete accessories and a
sidecar in the total consideration of P8,000.00;
The defendant gave a downpayment of P1,700.00 with a
promise that he would pay plaintiff the balance within 60 days;
The defendant, however, failed to comply with his promise
despite plaintiffs repeated demands ;
A chattel mortgage was constituted as a security for the
payment of the balance of the purchase price;
The records of the Land Transportation Communication (LTC)
show that the motorcycle sold to the defendant was first
mortgaged to the Teja Marketing by Angel Jaucian though
the Teja Marketing and Angel Jaucian are one and the same,
because it was made to appear that way only as the defendant
had no franchise of his own and he attached the unit to the
plaintiff's MCH Line;
The agreement also of the parties here was for the plaintiff to
undertake the yearly registration of the motorcycle with the
Land Transportation Commission. Pursuant to this agreement
the defendant on February 22, 1976 gave the plaintiff P90.00,
the P8.00 would be for the mortgage fee and the P82.00 for
the registration fee of the motorcycle.
The plaintiff, however failed to register the motorcycle on the
ground that the defendant failed to comply with some
requirements such as the payment of the insurance premiums
and the bringing of the motorcycle to the LTC for stenciling,
the plaintiff saying that the defendant was hiding the
motorcycle from him;
Lastly, the plaintiff explained also that though the ownership of
the motorcycle was already transferred to the defendant the
ISSUE:
WON respondent court erred in applying the doctrine of "pari delicto."
HELD:
The Supreme Court through Justice Paras ASSAILED the decision of
the Intermediate Appellate Court (now the Court of Appeals).
RATIO:
Unquestionably, the parties herein operated under an
arrangement, commonly known as the "kabit system"
whereby a person who has been granted a certificate of public
convenience allows another person who owns motor vehicles
to operate under such franchise for a fee.
A certificate of public convenience is a special privilege
conferred by the government. Abuse of this privilege by the
grantees thereof cannot be countenanced. The "kabit system"
has been identified as one of the root causes of the
prevalence of graft and corruption in the government
transportation offices.
Although not outrightly penalized as a criminal offense, the
kabit system is invariably recognized as being contrary to
Case # 33
URBANO MAGBOO and EMILIA MAGBOO vs. DELFIN
BERNARDO
April 30, 1963
Facts:
1. Spouses Urbano Magboo and Emilia C. Magboo are the
parents of Cesar Magboo, a child of 8 years old, who was
killed a motor vehicle accident. The vehicle is a passenger
jeepney owned by Delfin Bernardo, the defendant. At the time
of the accident, said jeepney was driven by Conrado Roque.
2. The contract of Roque and Bernardo is that of the boundary
system where they both agreed that Roque will pay the sum
of P8.00 to defendant for letting him drive the jeepney; and
that whatever earnings Roque could make out of the use of
the jeepney would belong to Roque.
3. Conrado Roque was prosecuted for homicide thru reckless
imprudence before the CFI of Manila. Upon arraignment, he
pleaded guilty and was sentenced arresto mayor with
indemnification with subsidiary imprisonment in case of
insolvency.
4. Roque was insolvent so the trial court ordered the defendant
to pay plaintiffs P3,000. Bernardo assails decision and
contends that there is no employer-employee relationship
under a boundary system.
Issue: Whether or not an employer-employee relationship exists
between a jeepney-owner and a driver under a "boundary system"
arrangement?
a. The fact that the driver does not receive a fixed wage but gets
only the excess of the receipt of fares collected by him over
the amount he pays to the jeep-owner and that the gasoline
consumed by the jeep is for the account of the driver are not
sufficient to withdraw the relationship between them from that
of employer and employee.