Bacolod-Murcia Milling v. CA

Bacolod-Murcia Milling v. CA (1990) Petitioners: BACOLOD-MURCIA Petitioners:  BACOLOD-MURCIA MILLING CO. INC. Respondents: CA Respondents:  CA ALON!O GA"U!LAO AGRO-INDU!"RIAL D#$#LO%M#N" O& !ILA'!ARA$IA (AID!I!A) AND BACOLODMURCIA AGRICUL"URAL COO%#RA"I$# MAR#"ING  A!!OCIA"ION  A!!OCIA"ION (BMACMA) (BMACMA) Ponente: %ARA! Ponente:  %ARA! Topic: R*di+ ,or Brac SUMMARY: (1- +n/nc +u**ar o, ,ac/+ i++u ra/io and ruling) FACTS: - BMMC i+ / onr and o2ra/or o, / +ugar cn/ral in Bacolod Ci/. - Alon+o Ga/u+lao i+ a rgi+/rd 2lan/r o, / Bacolod-Murcia Mill Di+/ric/. - On Ma 3 1945 BMMC and Alon+o Alon+o Ga/u+lao 6cu/d an ‘Extension ‘Extension and Modification of  Milling Contract’ ic Contract’ ic a+ rgi+/rd on !2/*7r 15 198 - BMMC a+ /ran+2or/d +ugar can ,ro* / 2lan/a/ion /o i/+ *ill /roug i/+ can car+ and railroad /rac ++/* ,or 34 ar+ ,ro* 190-191. - :n / ;acinda ;lv/ia onr+< *illing con/rac/+ i/ BMMC 62ird a/ / nd o, / 1983-1984 cro2 ar / corr+2onding rig/-o,-a gran/d /o BMMC al+o 62ird. - "u+ / BMMC a+ una7l /o u+ i/+ railroad ,acili/i+ during / cro2 ar 198=-1989 du /o / clo+ur in 198= o, / 2or/ion o, / raila /ravr+ing / ;acinda ;lv/ia a+ 2r !C F. Gonzaga, Inc. v. v. CFI of Negros Occidental . dci+ion in Angela Estate, Inc. and Fernando F. - "roug / *dia/ion o, / %r+idn/ o, / %ili22in+ / Angla #+/a/ and / Gon>aga #+/a/ agrd i/ BMMC /o allo / u+ o, / railroad /rac+ 2a++ing /roug ;acinda ;lv/ia during / 1985-198= *illing +a+on onl. - Du / non-rnal o, / rig/-o,-a con/rac/ i/ Angla #+/a/+ BMMC a+ una7l /o /ran+2or/ / +ugar can+ o, Alon+o Ga/u+lao or o, AID!I!A 7ginning 198=. Ga/u+lao on variou+ da/+ r?u+/d /ran+2or/a/ion ,acili/i+ ,ro* BMMC /o no avail. - Ga/u+lao and i+ i, ,ild a ca+ ,or breac of contract contract and da!ages da!ages against "MMC "MMC  and so#gt $#dg!ent rescinding te contract% invoing contract%  invoing BMMC<+ allgd ,ailur and@or ina7ili/ /o co*2l i/ i/+ +2ci,ic o7liga/ion o, 2roviding / nc++ar /ran+2or/a/ion ,acili/i+ /o aul / Ga/u+lao<+ +ugarcan ,ro* i+ 2lan/a/ion ,or / cro2 ar 1985-198=. - BMMC clai*d /a/ d+2i/ i/+ ina7ili/ /o u+ i/+ raila+ ++/* ,or i/+ loco*o/iv+ and can car+ /o aul / +ugarcan+ +ugarcan+ o, all i/+ adrd 2lan/r+ ,or / 198=-89 cro2 ar allegedl& d#e to force !a$e#re !a$e#re  in ordr /o co*2l i/ i/+ o7liga/ion BMMC ird a/ /r*ndou+ 62n+

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2riva/ /ruc+ a+ 2ri* *ovr+ ,or i/+ /railr+ /o 7 u+d ,or auling o, / can+ +2ciall ,or  /o+ o a22lid ,or and r?u+/d /ran+2or/a/ion ,acili/i+. Ga/u+lao in+/ad o, loading /ir  cu/ can+ on BMMC<+ cargo /ruc+ loadd /ir cu/ can+ on /ruc+ 2rovidd 7 / BM-ACMA. - "u+ "u+ BMMC al+o ,ild again+/ again+/ Ga/u+la Ga/u+lao o / AID!I! AID!I!A A and / BM-ACMA BM-ACMA a ca+ see'ing specific specific perfor!anc perfor!ance e #nder #nder te !illing !illing contract contract exec#ted exec#ted on Ma& ()% *+,*+,- bet.een bet.een "MMC and /at#slao% 2raing /at#slao%  2raing ,or ri/+ o, 2rli*inar *anda/or *anda/or inunc/ion /o stop te alleged 0iolation of te contract b& /at#slao in confederation% collaboration and conni0ance .it "M1ACMA% A23S2SA and da*ag+. - Ga/u+lao and BM-ACMA argud /a/ / ca+ i+ 7arrd 7 ano/r ac/ion 2nding 7/n / +a* 2ar/i+ ,or / +a* cau+ o, ac/ion. - AID!I!A argud /a/ 7,or i/ agrd /o *ill / +ugarcan o, Ga/u+lao i/ car,ull a+cr/aind and 7livd in good ,ai/ /a/ (a) BMMC a+ inca2a7l o, *illing / +ugarcan o, AID!I!A+ AID!I!A+ co-d,ndan/ 2lan/r+ a+ ll a+ / +ugarcan o, o/r 2lan/r+ ,or*rl adrn/ /o BMMC (7) BMMC ad in ,,c/ agrd /o a r+ci++ion o, i/+ *illing con/rac/+ i/ i/+ adrd 2lan/r+ includin including g Ga/u+lao Ga/u+lao 7cau+ 7cau+ o, inad?u inad?ua/ a/ *an+ *an+ o, /ran+2or /ran+2or/a/i /a/ion on and ad arnd arnd and advi+d /* /o *ill /ir +ugarcan l+r l+r and ad /u+ inducd /* /o 7liv and ac/ on / 7li, /a/ i/ could no/ *ill /ir +ugarcan and /a/ i/ ould no/ o7c/ /o /ir *illing i/ o/r cn/ral+ and (c) u2 /o no BMMC i+ inca2a7l o, auling / +ugarcan o, AID!I!A+ cod,ndan/+ /o BMMC<+ *ill +i/ ,or *illing 2ur2o++. - " ca++ r con+olida/d ,or oin/ /rial. " C&I dclard / *illing con/rac/ da/d Ma 3 1945 r+cindd. " CA a,,ir*d 2SSUES: :ON / /r*ina/ion o, BMMC<+ rig/ o, a ovr / ;acinda ;lv/ia cau+d 7 / 62ira/ion o, i/+ a*ndd *illing con/rac/+ i/ / landonr+ o, / acinda i+ a ,or/ui ,or/ui/ou /ou+ + vn/ vn/ or ,orc ,orc *au *aur r ic ic ill ill 6*2 6*2// BMMC BMMC ,ro* ,ro* ,ul,il ,ul,ill* l*n/ n/ o, i/+ con/rac/ual o7liga/ion+ (a+ BMMC argud) o NO. " /r*+ o, / *illing con/rac/+ r clar and undou7/dl undou7/dl /r a+ no ra+on ,or BMMC /o 62c/ o/ri+. " clo+ur o, an 2or/ion o, / railroad /rac no/ nc++aril in / acinda ;lv/ia 7u/ in an o, / 2ro2r/i+ o+ onr+ onr+ dcid dcidd d no/ no/ /o rn rn /ir /ir *illin *illing g con/r con/rac ac/+ /+ i/ i/ BMMC BMMC u2on u2on /ir  /ir  62ira/ion a+ ,or+a7l and invi/a7l. o D+2i/ i/+ aarn++ /a/ / convn/ional con/rac/ o, la+ ould 62ir in Cro2 'ar 1983-1984 and /a/ r,u+al on / 2ar/ o, an on o, / landonr+ /o rn /ir *illing con/rac/+ and / corr+2onding u+ o, / rig/ o, a on /ir land+ ould rndr i*2o++i7l co*2lianc co*2lianc o, I/+ co**i/*n/+ BMMC /oo a calcula/d ri+ /a/ all / landonr+ ould rn /ir con/rac/+.

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" vidnc +o+ /a/ gra/ ,,or/+ ad 7n 6r/d 7 / 2lan/r+ /o n/r  in/o in/o +o* +o* concr concr/ / und undr+/ r+/an andin ding g i/ i/ BMMC BMMC i/ i/ a vi vi o, o7/a o7/aini ining ng a ra+ona7l a++uranc /a/ / la//r ould 7 a7l /o aul and *ill /ir can+ ,or / 198=-1989 cro2 ar 7u/ /o no avail. o  A+ ad*i//d 7 BMMC i/+l, i/+l, in i/+ co**unica/ion+ co**unica/ion+ i/ / 2lan/r+ i/ i+ no/ in a 2o+i/ion /o 2rovid ad?ua/ /ran+2or/a/ion ,or / can+ in co*2lianc i/ i/+ co**i/*n/ undr / *illing con/rac/. o  A+ ,ound 7 / /rial cour/ / 62rinc o, Al,on+o Ga/u+lao Ga/u+lao a/ / +/ar/ o, / 198=-1989 *illing +a+on i+ r,lc/iv o, / inad?uaci+ o, / r2ar/o or /railr  allo/*n/ a+ ll a+ / +/a/ o, un2r2ardn++ on / 2ar/ o, BMMC /o */ / 2ro7l* 2o+d 7 / clo+ur o, / raila lin+. o  A,/r Ga/u+lao ad cu/ i+ +ugarcan+ +ugarcan+ ,or auling no /railr+ arrivd and n /o /railr+ ,inall arrivd on Oc/o7r 0 198= a,/r +vral undd r?u+/+ / r l,/ on / na/ional iga a7ou/ on (1) ilo*/r aa ,ro* / loading +/a/ion. !uc ,ac/ a+ con,ir*d 7 Carlo+ Bu/og / drivr o, / /ruc /a/ auld / /railr+. o Eavlo+a A++i+/an/ Cro2 Loan In+2c/or /+/i,id /a/ / +/i*a/d 2roduc/ion o, Ga/u+lao ,or / cro2 ar 198=1989 a+ 3300 2icul+ auld 7 10 can car+ a  i/ a *a6i*u* ca2aci/ o, = /on+. Co*2ard i/ i+ la/r +cdul o,  onl on /railr a  i/ a *a6i*u* ca2aci/ o, onl F /o 3 /on+ /r a22ar+ /o 7 no ?u+/ion /a/ / *an+ o, /ran+2or/a/ion 2rovidd 7 BMMC i+ vr inad?ua/ /o an+r / nd+ o, Ga/u+lao. Undo#btedl&% "MMC is g#ilt& of breac of te conditions of te !illing o contract and tat /at#slao is te in$#red part&4 Under A**+*% te in$#red part part& & !a& !a& coo coose se bet. bet.ee een n te te f#lf f#lfil ill! l!en entt and and te te resc rescis issi sion on of te te obligation% .it te pa&!ent of da!ages in eiter case4 2n fact% e !a& also see' rescission e0en after e ad cosen f#lfill!ent if te latter so#ld beco!e i!possible4 "MMC cannot clai! enforce!ent of te contract4 "& 0irt#e of te 0iolations o of te ter!s of te contract% te offending part& as forfeited an& rigt to its enforce!ent 5 Boysaw 64 64 :oN Ga/u+lao and BM-ACMA ar guil/ o, 7ad ,ai/ in / 6rci+ o, /ir du/i+ and ar in +/o22l /o ?u+/ion / ad?uac o, BMMC<+ /ran+2or/a/ion ,acili/i+ and i/+ ca2aci/ /o *ill and aul / can+ o, i/+ adrn/ 2lan/r+ NO. BM-ACMA canno/ 7 ,aul/d ,or organi>ing i/+l, /o /a car o, / nd+ o,  o i/+ **7r+. ! AID!I!A d,n+ a7ov ic !C ?uo/d i/ a22roval o o " %r+idn/ o, BMMC i*+l, inducd / 2lan/r+ /o 7liv and /o ac/ on / 7li, /a/ i/ ould no/ o7c/ /o / *illing o, /ir can+ i/ o/r cn/ral+. o

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