LAW ON TRANSPORTATION
I. CONCEPT OF COMMON CARRIER 1. Definition Article 1732 NCC, De Guzman vs. Court of Appeals $lanters $ro%ucts &nc vs. CA
168 SCA 612 !1""3# 226 SCA 76 !1""3#
2. Characteristics 'is(er vs. )an*co )an*co Steams(ip Co. 31 $(il 1 !1"1+# S vs. -uina(on 31 $(il 18" oa% oa%sta starr S(i S(ipp ppin in** Co. Co.,, &nc. &nc. vs. vs. Cour Courtt of of Appe Appeal alss 'irst $( $(il. &n%ustrial vs. Court of Appeals
31+ 31+ SC SCA A 33" 33" !1" !1""" ""## 3// SCA 661 !1""8#
3. Distinguished fro Pri!ate Carrier 0ome 0ome &nsu &nsura ranc ncee Co. Co. vs. vs. Amer Americ ican an Stea Steams ms((ip San $alo vs. $antranco National Steel Corp. vs. Co Court of Appeals
23 SCA SCA 2 !1"6 !1"68# 8# 1+3 SCA 1"" !1"87# 283 SCA + !1""7#
". #o!ernent Regu$ation of Coon Carrier%s &usiness 4 aor Center vs. Garcia, 5r. ata% vs. Garcia, 5r.
23" SCA 386 !1""# 21 SCA 33 !1""7#
'. #o!erning (a) Sama Samarr 4in 4iniin* Co., Co., &nc. &nc. vs. vs. Nor Nor%e %eut utsc sc(e (err l lo% o% astern S(ippin* ines vs. &AC Nati Nation onal al Deve Devellopme opment nt Co. Co. vs. vs. Cour Courtt of of Appe Appeal alss
132 132 SC SCA A +2" +2" !1 !1"8# "8# 1+/ SCA 6 !1"8# 16 16 SC SCA A +"3 +"3 !1 !1"88# "88#
II. CONTRACT*A( EFFECT+ A. ,I#I(ANCE O,ER #OOD+ 1. E-traordinar/ Di$igence Re0uired of Coon Carriers Artic$e 133 NCC4 a. 5Registered O)ner Ru$e6 Gelisan Gelisan vs. Al%a 1+ SCA 388 388 !1"87# 9ene%icto vs. &AC187 SCA +7 !1""/# $(iltr $(iltranc ancoo Service Service nterp nterpris rises, es, &nc. &nc. vs. CA 273 SCA SCA +62 +62 !1""7# !1""7#
7. 8a7it +/ste Santos vs. vs. Siu* 1/ SCA +2/ !1"81# !1"81# ita n nter terprises, ses, &nc. vs vs. CA CA 18 SC SCA 37 !1 !1"87# e:a e:a 4ar; 4ar;et etin in** vs. vs. &AC &AC 18 18 SCA SCA 37 37 !1"8 !1"87# 7#
c. &oundar/ +/ste 4a* 4a*oo oo vs. vs. 9er 9erna nar% r%oo
7 SCA SCA "+2 "+2 !1"6 !1"63# 3#
2. (ia7 (ia7i$i$itit// of Carr Carrie iers rs for for (oss (oss Dest Destru ruct ctio ionn and and Dete Deteri rior orat atio ionn of #ood #oods9 s9 E-ce E-ce:t :tio ions ns99 Presu:tion of Neg$igence Artic$es 13"13'9 Artic$es 13;1"3 astern S(ippin* ines vs. &AC, supra Ganzon vs. CA 161 SCA 66 !1"8+# ast aster ernn S(i S(ipp ppiin* ine iness vs. vs. Cou Court of Appe Appeal alss 1"6 1"6 SC SCA A +7/ +7/ !1 !1""1# ""1# Sar; Sar;ie iess ou ours rs $(i $(ils ls., ., &nc &nc.. vs. vs. Cour Courtt of Appe Appeal alss 28/ 28/ SCA SCA +8 !1" !1""7 "7##
&n% &n%us ustr tria iall Supp Suppl l vs. vs. Cou Court rt of of App Appea eals ls 27 27 SCA SCA 62 62 !1"" !1""7# 7# )oi%o vs. Court of Appeals 281 SCA 1 !1""7#
3. Coenceent Duration and Terination of carrier%s res:onsi7i$it/ o!er the goods Artic$es 13<13= NCC4 Comp Compan ania ia 4ari 4arititima ma vs. vs. &nsu &nsura ranc ncee Co. Co. of Nort Nort(( Amer Americ icaa 12 SCA SCA 213 213 !1" !1"6 6## u Do vs. 9inamira 1/1 $(il. 12/ !1"+7# American $resi%ent ines t%. vs. lepper 11/ $0& 23 Servan%o vs. $(il. Steam 117 SCA 832 !1"82# Ganzon vs. Court of Appeals, supra Salu%o, 5r. vs. Court of Appeals 2/7 SCA "8 !1""2# 4acam vs. Court of Appeals 313 SCA 77 !1"""#
". +ti:u$ations (iiting Carrier%s (ia7i$it/ a. Artic$es 1""1"' NCC9 Degree of Di$igence Reasona7$e tie in the de$i!er/ Case: 4aers; ine vs. Court of Appeals
222 SCA 1/8 !1""3#
7. Artic$es 1";1'> NCC9 Aount of (ia7i$it/ )smael vs. 9arretto +1 $0& "/ !1"27# S(e=aram vs. $(ilippine Airlines 17 SCA 6/6 !1"66# ?n* )iu vs. Court of Appeals "1 SCA 223 !1"66# Sea an% an% Servi Services ces,, &nc. &nc. vs. vs. &nterm &nterme%i e%iate ate Appell Appellate ate Court Court 1+3 SC SCA A ++2 !1"87# !1"87# Cita%el ines, &nc. vs. Court of Appeals 18 SCA + !1""/# ver veret ettt Sea Seams ms(i (ipp Cor Corp. p. vs. vs. Cou Court rt of Appe Appeal alss 2"7 2"7 SC SCA A "6 "6 !1" !1""8 "8## 9ritis( Air=as vs. Court of Appeals 28+ SCA +/ !1""8# 0.. 0eacoc; Co. vs. 4acon%ra > Co. 2 $0& 2/+ !1"21#
c. ,oid +ti:u$ation +ti:u$ation Art. 1"' NCC4 Case: S=eet ines vs. eves
83 SCA 361 !1"78#
'. Passenger%s &aggages Artic$e 1'" NCC4 -uisumin*, Sr. vs. Court of Appeals $an American Airlines vs. apa%as 9ritis( Air=as vs. Court of Appeals, supra Alitalia vs. &nterme%iate Appellate Court
18" SCA 6/+ !1""/# 2/" SCA 67 !1""2# 1"2 SCA " !1""/#
&. +AFET? OF PA++EN#ER+ 1. @*tost Di$igence% Re0uired of Coon Carriers Artic$e 1'' NCC4 Nocum vs. a*una aaas us. Co. vs. CA 83 SCA 386 !1"78# 4ecenas vs. CA 18/ SCA 83 !1"8"# Ne*ros Navi*ation Co., &nc. vs. CA 281 SCA 717 !1""7# orean Airlines Co. t%. vs. CA 23 SCA 1 !1"""# 'ortune @press, &nc. vs. CA 3/+ SCA 1 !1"""# Gatc(alian vs. Delim 2/3 SCA 126 !1""1# Del Castillo vs. 5amalin 112 SCA 62" !1"82#
A. Doctrine of (ast C$ear Chance $(ilippine ait 9us ines vs. &AC 18" SCA 1+8 !1""/# 9ustamante vs. CA 1"3 SCA 6/3 !1""1#
&. Accoodation Passenger ara vs.
1/ SCA 6+ !1"+8#
C. Carrier not an insurer against a$$ riss Necessito vs. $aras 5apan Airlines vs. CA
1/ $(il. 7+ !1"+8# 2" SCA 1" !1""8#
D. Res I:sa (o0uitur au*an vs. &AC
167 SCA 363 !1"88#
2. Coenceent Duration and Terination of Carrier%s Res:onsi7i$it/ a 4allorca vs. De 5esus 17 SCA 73" !1"66# Aoitiz S(ippin* Co. vs. Court of Appeals 17" SCA "+ !1"8"# 4allari Sr. vs. Court of Appeals 32 SCA 17 !2///#
3. Presu:tion of Neg$igenceB (ia7i$it/ of Carriers for death or inur/ to :assengers9 E-ce:tions Artic$es 1'<1'= NCC4 9aasen vs. Court of Appeals Cervantes vs. Court of Appeals Calalas vs. Court of Appeals $estao vs. Sumaan*
1/3 SCA 1"7 !1"81# 3/ SCA 27 !1"""# 332 SCA 3+6 !2///# 36 SCA 87/ !2///#
". Neg$igence or intentiona$ assau$t 7/ carrier%s e:$o/ee Gillaco vs. 4anila ailroa% Co. 4aranan vs. $erez
"7 $(il. 88 !1"++# 2/ SCA 12 !1"67#
'. Passenger%s dut/ to o7ser!e di$igence to a!oid inur/9 contri7utor/ neg$igence $N vs. Court of Appeals &saac vs. Al Ammen rans
13" SCA 87 !1"8+# 1/1 $(il 1/6 !1"+7#
<. Inur/ to :assenger due to acts of co:assenger or stranger 9ac(elor @press, &nc vs. Court of Appeals 188 SCA 216 !1""/# 'ortune @press &nc. vs. CA, supra
III. DAMA#E+ Artic$e 1<" NCC4 A. Actua$Co:ensator/ Daages Arts. 21;; 22>1 22>3 NCC4 Caria*a vs. 9 Co., > 4
11/ $0& 36 !1"6/# 31 SCA +11 !1"7/# 1+3 SCA +21 !1"87# 2/3 SCA 126 !1""1#
1. Reco!er/ for Ph/sica$ Inuries Soerano vs. 4 > 9en*uet Auto ine 4arc(an vs. 4en%oza
18 SCA 732 !1"66# 2 SCA 888 !1"68#
2. Daages in case of death De Caliston vs. CA $A vs. CA
122 SCA "+8 !1"83# 18+ SCA 11/ !1""/#
&. Mora$ Daages Arts. 22>< 221<221 221;222> NCC4 Cac(ero vs. 4anila )ello= a@i Ca 1/1 $(il. +23 !1"+7# 'ores vs. 4iran%a 1/+ $(il. 266 !1"+"# opez vs. $an American 16 SCA 31 !1"66# ?rti*as 5r. vs. uft(ansa 6 SCA 61/ !1"7+# $(il. ait 9us ines vs. s*uerra 117 SCA 71 !1"82# S=eet ines vs. Court of Appeals 121 SCA 76" !1"83# $an American Borl% Air=as vs. &AC, supra ransBorl% Airlines vs. CA 16+ SCA 13 !1"88# Armovit vs. Court of Appeals 18 SCA 76 !1""/# $A vs. CA 1/6 SCA 3"1
C. E-e:$ar/ Daages Arts. 222; 22322233 NCC4 $ru%encia%o vs. Alliance ransport 4arc(an vs. 4en%oza, supra.
18 SCA / !1"87#
SUMMARY OF CASE DOCTRINES
De #uan !s. Court of A::ea$s Article 1732 ma;es no %istinction et=een one =(ose principal usiness activit is t(e carrin* of persons or *oo%s or ot(, an% one =(o %oes suc( carrin* onl as an ancillar activit !in local &%iom as a si%eline#. Article 1732 also carefull avoi%s ma;in* an %istinction et=een a person or enterprise offerin* transportation service on a re*ular or sc(e%ule% asis an% one offerin* suc( service on an occasional, episo%ic or unsc(e%ule% asis. Neit(er %oes Article 1732 %istin*uis( et=een a carrier offerin* its services to t(e *eneral pulic, i.e., t(e *eneral communit or population, an% one =(o offers services or solicits usiness onl from a narro= se*ment of t(e *eneral population. (e Court of Appeals referre% to t(e fact t(at private respon%ent (el% no certificate of pulic convenience. A certificate of pulic convenience is not a reuisite for t(e incurrin* of liailit. (at liailit arises t(e moment a person or firm acts as a common carrier, =it(out re*ar% to =(et(er or not suc( carrier (as also complie% =it( t(e reuirements of t(e applicale re*ulator statute an% implementin* re*ulations an% (as een *rante% a certificate of pulic convenience or ot(er franc(ise. o e@empt private respon%ent from t(e liailities of a common carrier ecause (e (as not secure% t(e necessar certificate of pulic convenience, =oul% e offensive to soun% pulic policE t(at =oul% e to re=ar% private respon%ent precisel for failin* to compl =it( applicale statutor reuirements.
P$anters Products Inc. !s. CA &t is not %ispute% t(at respon%ent carrier, in t(e or%inar course of usiness, operates as a common carrier, transportin* *oo%s in%iscriminatel for all persons. B(en petitioner c(artere% t(e vessel 4F< Sun $lum, t(e s(ip captain, its officers an% compliment =ere un%er t(e emplo of t(e s(ipo=ner an% t(erefore continue% to e un%er its %irect supervision an% control. 0ar%l t(en can t(e c(arterer e c(ar*e%, a stran*er to t(e cre= an% to t(e s(ip, =it( t(e %ut of carin* for (is car*o =(en t(e c(arterer %i% not (ave an control of t(e means in %oin* so. (is is evi%ent in t(e present case consi%erin* t(at t(e steerin* of t(e s(ip, t(e mannin* of t(e %ec;s, t(e %etermination of t(e course of t(e voa*e an% ot(er tec(nical inci%ents of maritime navi*ation =ere all consi*ne% to t(e officers an% cre= =(o =ere screene%, c(osen an% (ire% t(e s(ipo=ner. &t is t(erefore imperative t(at a pulic carrier s(all remain as suc(, not=it(stan%in* t(e c(arter of t(e =(ole or portion of a vessel one or more persons, provi%e% t(e c(arter is limite% to t(e s(ip onl, as in t(e case of a timec(arter or voa*ec(arter. &t is onl =(en t(e c(arter inclu%es ot( t(e vessel an% its cre=, t(at a common carrier ecomes private, at least insofar as t(e particular voa*e coverin* t(e c(arterpart is concerne%. &n%uital, a s(ipo=ner in a time or voa*e c(arter retains possession an% control of t(e s(ip, alt(ou*( (er (ol%s ma, for t(e moment, e t(e propert of t(e c(arterer.
Fisher !s. ?angco &n construin* Act "8 for t(e alle*e% violation, t(e test is =(et(er t(e refusal of )SC to carr t(e e@plosives =it(out ualification or con%itions ma (ave t(e effect of su:ectin* an person or localit or t(e traffic is suc( e@plosives to an un%ul unreasonale or unnecessar pre:u%ice or %iscrimination. Common carriers in t(is :uris%iction cannot la=full %ecline to accept a particular class of *oo%s unless it appears t(at
for some sufficient reason t(e %iscrimination for suc( is reasonale an% necessar. )SC (as not met t(ose con%itions. (e nature of t(e usiness of a common carrier as a pulic emploment is suc( t(at it is =it(in t(e po=er of t(e State to impose suc( :ust re*ulations in t(e interest of t(e pulic as t(e le*islator ma %eem proper.
*+ !s. uinahon (ere is no pretense t(at it actuall cost more to (an%le t(e rice for t(e province t(an it %i% for t(e merc(ants =it( =(om t(e special contracts =ere ma%e. (ere =as a clear %iscrimination a*ainst t(e province =(ic( is pro(iite% t(e la=. &t is (o=ever not elieve% t(at t(e la= pro(iits common carriers from ma;in* special rates for t(e (an%lin* an% transportin* of merc(an%ise, =(en t(e same are ma%e for t(e purpose of increasin* t(eir usiness an% to mana*e t(eir important interests upon t(e same principles =(ic( are re*ar%e% as soun% an% a%opte% in ot(er tra%es an% pursuits. Asolute eualit is not reuire% in all cases. &t is onl un:ust, un%ue an% unreasonale %iscrimination =(ic( t(e la= fori%s. (e la= of eualit is in force onl =(ere t(e services performe% in t(e %ifferent cases are sustantiall t(e same an% t(e circumstances an% con%itions are similar.
(oadstar +hi::ing Co. Inc. !s. CA oa%star sumits t(at t(e vessel =as a private carrier ecause it =as not issue% a C$CE it %i% not (ave a re*ular trip or sc(e%ule nor a fi@e% routeE an% t(ere =as onl Hone s(ipper, one consi*nee for a special car*o.I (e SC (el% t(at oa%star is a common carrier. &t is not necessar t(at t(e carrier e issue% a C$C, an% t(is c(aracter is not altere% t(e fact t(at t(e carria*e of t(e *oo%s in uestion =as perio%ic, occasional, episo%ic or unsc(e%ule%.
First Phi$i::ine Industria$ Cor:oration !s. CA 9ase% on Article 1732 NCC, t(ere is no %out t(at petitioner is a common carrier. &t is en*a*e% in t(e usiness of transportin* or carrin* *oo%s, i.e. petroleum pro%ucts, for (ire as a pulic emploment. &t un%erta;es to carr for all persons in%ifferentl, t(at is, to all persons =(o c(oose to emplo its services, an% transports t(e *oo%s lan% an% for compensation. (e fact t(at petitioner (as a limite% clientele %oes not e@clu%e it from t(e %efinition of a common carrier. !De Guzman ulin* up(el%# espon%entJs ar*ument t(at t(e term Hcommon carrierI as use% in Section 133!:# of t(e ocal Government Co%e refers onl to common carriers transportin* *oo%s an% passen*ers t(rou*( movin* ve(icles or vessels eit(er lan%, sea or =ater is erroneous. (e %efinition of Hcommon carriersI in NCC ma;es no %istinction as to t(e means of transportin* as lon* as it is lan%, =ater or air. &t %oes not provi%e t(at t(e transportin* of t(e passen*ers or *oo%s s(oul% e motor ve(icle.
Goe Insurance Co:an/ !s. Aerican +teashi: Agencies Inc. (e NCC provisions on common carriers s(oul% not appl =(ere t(e common carrier is not actin* as suc( ut as a private carrier. n%er American 5urispru%ence, a common carrier un%erta;in* to carr a special car*o or c(artere% to a special person onl ecomes a private carrier. As a private carrier, a stipulation e@emptin* t(e o=ner from liailit for t(e ne*li*ence of its a*ent is vali%.
(e stipulation in t(e c(arter part asolvin* t(e o=ner from liailit for loss %ue to t(e ne*li*ence of its a*ent =oul% e voi% onl if strict pulic polic *overnin* common carrier is applie%. Suc( polic (as no force =(ere t(e pulic at lar*e is not involve%, as in t(e case of a s(ip totall c(artere% for t(e use of a sin*le part. (e stipulation e@emptin* t(e o=ner from liailit for ne*li*ence of its a*ent is not a*ainst pulic polic an% is %eeme% vali%. ecover canJt e (a%, for loss or %ama*e to t(e car*o a*ainst s(ipo=ners, unless t(e same is %ue to personal acts or ne*li*ence of sai% o=ner or its mana*ers, as %istin*uis(e% from a*ents or emploees.
+an Pa7$o !s. PANTRANCO Consi%erin* t(e environmental circumstances of t(e case, t(e conveance of passen*ers, truc;s an% car*o from 4atno* to Allen is certainl not a ferr oat service ut a coast=ise or interislan% s(ippin* service. n%er no circumstance can t(e sea et=een 4atno* an% Allen e consi%ere% a continuation of t(e (i*(=a. B(ile a ferr oat service (as een consi%ere% as a continuation of t(e (i*(=a =(en crossin* rivers or even la;es, =(ic( are small o% of =aters separatin* t(e lan%, (o=ever, =(en as in t(is case t(e t=o terminals, 4atno* an% Allen are separate% an open sea it can not e consi%ere% as a continuation of t(e (i*(=a. espon%ent $ANANC? s(oul% secure a separate C$C for t(e operation of an interislan% or coast=ise s(ippin* service in accor%ance =it( t(e provisions of la=. &ts C$C as a us transportation cannot e merel amen%e% to inclu%e t(is =ater service un%er t(e *uise t(at it is a mere private ferr service. (e contention of private respon%ent $ANANC? t(at its ferr service operation is as a private carrier, not as a common carrier for its e@clusive use in t(e ferrin* of its passen*er uses an% car*o truc;s is asur%. $ANANC? %oes not %en t(at it c(ar*es its passen*ers separatel from t(e c(ar*es for t(e us trips an% issues separate tic;ets =(enever t(e oar% t(e 4< 9lac; Doule t(at crosses 4atno* to Allen, $ANANC? cannot preten% t(at in issuin* tic;ets to its passen*ers it %i% so as a private carrier an% not as a common carrier. (e Court %oes not see an reason =( inspite of its amen%e% franc(ise to operate a private ferr oat service it cannot accept =al;in passen*ers :ust for t(e purpose of crossin* t(e sea et=een 4atno* an% Allen. &n%ee% evi%ence to t(is effect (as een sumitte%.
Nationa$ +tee$ Cor:oration !s. CA &n t(e instant case, it is un%ispute% t(at
8M* !s. #arcia H(e issuance of a Certificate of $ulic Convenience is %etermine% pulic nee%. (e presumption of pulic nee% for a service s(all e %eeme% in favor of t(e applicant, =(ile t(e ur%en of provin* t(at t(ere is no nee% for t(e propose% service s(all e t(e oppositorKs.I
9 its terms, pulic convenience or necessit *enerall means somet(in* fittin* or suite% to t(e pulic nee%. As one of t(e asic reuirements for t(e *rant of a C$C, pulic convenience an% necessit e@ists =(en t(e propose% facilit or service meets a reasonale =ant of t(e pulic an% suppl a nee% =(ic( t(e e@istin* facilities %o not a%euatel suppl. (e e@istence or none@istence of pulic convenience an% necessit is t(erefore a uestion of fact t(at must e estalis(e% evi%ence, real an%For testimonialE empirical %ataE statistics an% suc( ot(er means necessar, in a pulic (earin* con%ucte% for t(at purpose. (e o:ect an% purpose of suc( proce%ure, amon* ot(er t(in*s, is to loo; out for, an% protect, t(e interests of ot( t(e pulic an% t(e e@istin* transport operators.
Tatad !s. #arcia &n la=, t(ere is a clear %istinction et=een t(e operation of a pulic utilit an% t(e o=ners(ip of t(e facilities an% euipment use% to serve t(e pulic. (e ri*(t to operate a pulic utilit ma e@ist in%epen%entl an% separatel from t(e o=ners(ip of t(e facilities t(ereof. ?ne can o=n sai% facilities =it(out operatin* t(em as a pulic utilit, or conversel, one ma operate a pulic utilit =it(out o=nin* t(e facilities use% to serve t(e pulic. (e %evotion of propert to serve t(e pulic ma e %one t(e o=ner or t(e person in control t(ereof =(o ma not necessaril e t(e o=ner t(ereof.
+aar Mining Co:an/ Inc. !s. Nordeutscher ($o/d (e vali%it of stipulations in ills of la%in* e@emptin* t(e carrier from liailit for loss or %ama*e to t(e *oo%s =(en t(e same are not in its actual custo% (as een up(el%. (ere is no %out t(at Art. 1738 fin%s no applicailit to t(e instant case. (e sai% article contemplates a situation =(ere t(e *oo%s (a% alrea% reac(e% t(eir place of %estination an% are store% in t(e =are(ouse of t(e carrier. (e su:ect *oo%s =ere still a=aitin* transs(ipment to t(eir port of %estination, an% =ere store% in t(e =are(ouse of a t(ir% part =(en last seen an%For (ear% of. Article 1736 is applicale to t(e instant suit. n%er sai% article, t(e carrier ma e relieve% of t(e responsiilit for loss or %ama*e to t(e *oo%s upon actual or constructive %eliver of t(e same t(e carrier to t(e consi*nee, or to t(e person =(o (as a ri*(t to receive t(em. &n sales, actual %eliver (as een %efine% as t(e ce%in* of corporeal possession t(e seller, an% t(e actual appre(ension of corporeal possession t(e uer or some person aut(orize% (im to receive t(e *oo%s as (is representative for t(e purpose of custo% or %isposal. 9 t(e same to;en, t(ere is actual %eliver in contracts for t(e transport of *oo%s =(en possession (as een turne% over to t(e consi*nee or to (is %ul aut(orize% a*ent an% a reasonale time is *iven (im to remove t(e *oo%s. (e court a uo foun% t(at t(ere =as actual %eliver to t(e consi*nee t(rou*( its %ul aut(orize% a*ent, t(e carrier.
Eastern +hi::ing (ines !s. Interediate A::e$$ate Court 1# (e la= of t(e countr to =(ic( t(e *oo%s are to e transporte% *overns t(e liailit of t(e common carrier in case of t(eir loss, %estruction or %eterioration. As t(e car*oes in uestion =ere transporte% from 5apan to t(e $(ilippines, t(e liailit of $etitioner Carrier is *overne% primaril t(e Civil Co%e. 0o=ever, in all matters not re*ulate% sai% Co%e, t(e ri*(ts an% oli*ations of common carrier s(all e *overne% t(e Co%e of Commerce an% special la=s. (us, t(e Carria*e of Goo%s Sea Act, a special la=, is suppletor to t(e provisions of t(e Civil Co%e.
!2# n%er t(e Civil Co%e, common carriers, from t(e nature of t(eir usiness an% for reasons of pulic polic, are oun% to oserve e@traor%inar %ili*ence in t(e vi*ilance over *oo%s, accor%in* to all t(e circumstances of eac( case. Common carriers are responsile for t(e loss, %estruction, or %eterioration of t(e *oo%s unless t(e same is %ue to an of t(e follo=in* causes onlL !1# 'loo%, storm, eart(ua;e, li*(tnin* or ot(er natural %isaster or calamitE $etitioner Carrier claims t(at t(e loss of t(e vessel fire e@empts it from liailit un%er t(e p(rase natural %isaster or calamit.I 0o=ever, t(e Court sai% t(at fire ma not e consi%ere% a natural %isaster or calamit. (is must e so as it arises almost invarial from some act of man or (uman means. &t %oes not fall =it(in t(e cate*or of an act of Go% unless cause% li*(tnin* or ot(er natural %isaster or calamit. &t ma even e cause% t(e actual fault or privit of t(e carrier. As t(e peril of t(e fire is not compre(en%e% =it(in t(e e@ception in Article 173, supra, Article 173+ of t(e Civil Co%e provi%es t(at all cases t(an t(ose mention in Article 173, t(e common carrier s(all e presume% to (ave een at fault or to (ave acte% ne*li*entl, unless it proves t(at it (as oserve% t(e e@traor%inar %ili*ence reuire% la=. An% even if fire =ere to e consi%ere% a natural %isaster =it(in t(e meanin* of Article 173 of t(e Civil Co%e, it is reuire% un%er Article 173" of t(e same Co%e t(at t(e natural %isaster must (ave een t(e pro@imate an% onl cause of t(e loss, an% t(at t(e carrier (as e@ercise% %ue %ili*ence to prevent or minimize t(e loss efore, %urin* or after t(e occurrence of t(e %isaster.I (is $etitioner Carrier (as also faile% to estalis( satisfactoril.
Nationa$ De!e$o:ent Co:an/ !s. CA Si*nificantl, un%er t(e provisions of t(e Co%e of Commerce, particularl Articles 826 to 83", t(e s(ipo=ner or carrier, is not e@empt from liailit for %ama*es arisin* from collision %ue to t(e fault or ne*li*ence of t(e captain. $rimar liailit is impose% on t(e s(ipo=ner or carrier in reco*nition of t(e universall accepte% %octrine t(at t(e s(ipmaster or captain is merel t(e representative of t(e o=ner =(o (as t(e actual or constructive control over t(e con%uct of t(e voa*e. (e a*reement et=een NDC an% 4C$ s(o=s t(at 4C$ is appointe% as a*ent, a term roa% enou*( to inclu%e t(e concept of s(ip a*ent in maritime la=. &n fact 4C$ =as even conferre% all t(e po=ers of t(e o=ner of t(e vessel, inclu%in* t(e po=er to contract in t(e name of t(e NDC. 9ot( o=ner an% a*ent s(oul% e %eclare% :ointl an% severall liale since t(e oli*ation =(ic( is t(e su:ect of t(e action (a% its ori*in in a fortuitous act an% %i% not arise from contract.
#e$isan !s. A$da/ (e court (as (el% in several %ecisions t(at t(e re*istere% o=ner of a pulic service is responsile for %ama*es t(at ma arise from conseuences inci%ent to its operation or t(at ma e cause% to an of t(e passen*ers t(erein. (e claim of t(e petitioners t(at (e is not liale in vie= of t(e lease contract e@ecute% an% et=een (im an% spiritu =(ic( e@empts (im from liailit to 3r% persons, cannot e sustaine% ecause it appears t(at t(e lease contract (a% not een approve% t(e $ulic Service Commission. &t is a settle% rule in our :urispru%ence t(at if t(e propert covere% a 'ranc(ise is transferre% or lease to anot(er =it(out otainin* t(e reuisite approval, t(e transfer is not in%in* upon t(e pulic an% 3r% persons. 0o=ever, Gelisan is not =it(out recourse ecause (e (as a ri*(t to e in%emnifie% spiritu for t(e amount (e ma e reuire% to pa. (is is %ue to t(e fact t(at t(e lease contract in uestion, alt(ou*( not effective a*ainst t(e pulic is vali% an% in%in* et=een t(e contractin* parties.
&enedicto !s. Interediate A::e$$ate Court (e prevailin* %octrine in common carriers ma;e t(e o=ner liale for conseuences (avin* from t(e operations of t(e carrier even t(ou*( t(e specific ve(icle involve% ma (ave een transferre% to anot(er person. (is %octrine rests upon t(e principle in %ealin* =it( ve(icles re*istere% un%er $ulic Service a=, t(e pulic (as t(e ri*(t to assume t(at t(e re*istere% o=ner is t(e actual or la=ful o=ner t(ereof. &t =oul% e ver %ifficult an% often impossile as a practical matter, for memers of t(e *eneral pulic to enforce t(e ri*(ts of action t(at t(e ma (ave for in:uries inflicte% t(e ve(icles ein* ne*li*entl operate% if t(e s(oul% e reuire% to prove =(o t(e actual o=ner is. (e re*istere% o=ner is not allo=e% to %en liailit provin* t(e i%entit of t(e alle*e% transferee. (us, contrar to petitionerJs claim, private respon%ents are not reuire% to *o eon% t(e ve(icleJs certificate of re*istration to ascertain t(e o=ner of t(e carrier.
PGI(TRANCO +er!ice Enter:rise Inc. !s. Court of A::ea$s Be (ave consistentl (el% t(at t(e liailit of t(e re*istere% o=ner of a pulic service ve(icle, li;e petitioner $(iltranco, for %ama*es arisin* from t(e tortious acts of t(e %river is primar, %irect, an% :oint an% several or soli%ar =it( t(e %river. As to soli%arit, Article 21" e@pressl provi%esL Art. 21". (e responsiilit of t=o or more persons =(o are liale for a uasi%elict is soli%ar. Since t(e emploerKs liailit is primar, %irect an% soli%ar, its onl recourse if t(e :u%*ment for %ama*es is satisfie% it is to recover =(at it (as pai% from its emploee =(o committe% t(e fault or ne*li*ence =(ic( *ave rise to t(e action ase% on uasi%elict. Article 2181 of t(e Civil Co%e provi%esL Art. 2181. B(oever pas for t(e %ama*e cause% (is %epen%ents or emploees ma recover from t(e latter =(at (e (as pai% or %elivere% in satisfaction of t(e claim.
+antos !s. +i7ug Alt(ou*( SAN?S, as t(e ;ait =as t(e true o=ner as a*ainst <&DAD, t(e latter, as t(e re*istere% o=nerFoperator an% *rantee of t(e franc(ise, is %irectl an% primaril responsile an% liale for t(e %ama*es cause% to S&9G, t(e in:ure% part, as a conseuence of t(e ne*li*ent or careless operation of t(e ve(icle. (is rulin* is ase% on t(e principle t(at t(e operator of recor% is consi%ere% t(e operator of t(e ve(icle in contemplation of la= as re*ar%s t(e pulic an% t(ir% persons even if t(e ve(icle involve% in t(e acci%ent (a% een sol% to anot(er =(ere suc( sale (a% not een approve% t(e t(en $ulic Service Commission.
(ita Enter:rises Inc. !s. Interediate A::e$$ate Court nuestional, t(e parties (erein operate% un%er an arran*ement, comonl ;no=n as t(e ;ait sstem, =(ere a person =(o (as een *rante% a certificate of convenience allo=s anot(er person =(o o=ns motors ve(icles to operate un%er suc( franc(ise for a fee. A certificate of pulic convenience is a special privile*e conferre% t(e *overnment . Ause of t(is privile*e t(e *rantees t(ereof cannot e countenance%. Alt(ou*( not outri*(tl penalize% as a criminal offense, t(e ;ait sstem is invarial reco*nize% as ein* contrar to pulic polic an%, t(erefore, voi% an% ine@istent un%er Article 1/" of t(e Civil Co%e, &t is a fun%amental principle t(at t(e court =ill not ai% eit(er part to enforce an ille*al contract, ut =ill leave t(em ot( =(ere it fin%s t(em.
Tea Mareting !s. Interediate A::e$$ate Court (e rulin* in ita nterprises &nc. vs. &AC is up(el%. (e %efect of in e@istence of a contract is permanent an% cannot e cure% ratification or prescription. (e mere lapse of time cannot *ive efficac to contracts t(at are null an% voi%.
Mag7oo !s. &ernardo (e features =(ic( c(aracterize t(e oun%ar sstem are not sufficient to =it(%ra= t(e relations(ip et=een t(e parties from t(at of emploer an% emploee. (e o=ner continue% to e t(e operator of t(e ve(icle in le*al contemplation an% as suc(, (e is responsile for t(e conseuences inci%ent to its operation. o e@empt from liailit t(e o=ner of a pulic ve(icle =(o operates it un%er t(e Houn%ar sstemI on t(e *roun% t(at (e is a mere lessor =oul% e not onl to aet fla*rant violations of t(e $ulic Service a= ut also to place t(e ri%in* pulic at t(e merc of rec;less an% irresponsile %rivers.
#anon !s. CA $etitioner Ganzon faile% to s(o= t(at t(e loss of t(e scrap iron %ue to an cause enumerate% in Art. 173. (e or%er of t(e actin* 4aor %i% not constitute vali% aut(orit for petitioner to carr out. &n an case, t(e intervention of t(e municipal officials =as not of a c(aracter t(at =oul% ren%er impossile t(e fulfillment t(e carrier of its oli*ation. (e petitioner =as not %ul oun% to oe t(e ille*al or%er to %ump into t(e sea t(e scrap of iron. 4oreover, t(ere is asence of sufficient proof t(at t(e issuance of t(e same or%er =as atten%e% =it( suc( force or intimi%ation as to completel overpo=er t(e =ill of t(e petitionerJs emploees. 9 t(e %eliver ma%e %urin* Dec. 1, 1"+6, t(e scraps =ere uncon%itionall place% in t(e possession an% control of t(e common carrier, an% upon t(eir receipt t(e carrier of transportation, t(e contract of carria*e =as %eeme% perfecte%. Conseuentl, GanzonJs e@traor%inar responsiilit for t(e loss, %estruction or %eterioration of t(e *oo%s commence%. Accor%in* to Art 1738, suc( e@traor%inar responsiilit =oul% cease onl upon t(e %eliver t(e carrier to t(e consi*nee or persons =it( ri*(t to receive t(em. (e fact t(at part of t(e s(ipment (a% not een loa%e% on oar% %i% not impair t(e contract of transportation as t(e *oo%s remaine% in t(e custo% > control of t(e carrier.
Eastern +hi::ing (ines !s. Court of A::ea$s (e (eav seas an% rains referre% to in t(e masterJs report =ere not caso fortuito ut normal occurrences t(at an ocean*oin* vessel, particularl in t(e mont( of Septemer =(ic(, in our area, is a mont( of rains an% (eav seas =oul% encounter as a matter of routine. (e are not unforeseen nor unforeseeale. (ese are con%itions t(at ocean*oin* vessels =oul% encounter an% provi%e for, in t(e or%inar course of a voa*e. (at rain =ater !not sea =ater# foun% its =a into t(e (ol%s of t(e 5upri
+aries Tours Phi$s !s. Court of A::ea$s n%er t(e Civil Co%e, common carriers, from t(e nature of t(eir usiness an% for reasons of pulic polic, are oun% to oserve e@traor%inar %ili*ence in t(e vi*ilance over t(e *oo%s transporte% t(em, an% t(is liailit lasts from t(e time t(e *oo%s are uncon%itionall place% in t(e possession of, an% receive% t(e carrier for transportation until t(e same are %elivere%, actuall or constructivel, t(e carrier to t(e person =(o (as a ri*(t to receive t(em, unless t(e loss is %ue to an of t(e e@cepte% causes un%er Article 173 t(ereof. B(ere t(e common carrier accepte% its passen*erKs a**a*e for transportation an% even (a% it place% in t(e ve(icle its o=n emploee, its failure to collect t(e frei*(t c(ar*e is t(e common carrierKs o=n loo;out. &t is responsile for t(e conseuent loss of t(e a**a*e. &n t(e instant case, %efen%ant appellantKs emploee even (elpe% 'atima 4inerva 'orta%es an% (er rot(er loa% t(e lu**a*esFa**a*es in t(e usK a**a*e compartment, =it(out as;in* t(at t(e e =ei*(e%, %eclare%, receipte% or pai% for. Neit(er =as t(is reuire% of t(e ot(er passen*ers.
,a$enue$a Gard)ood H Industria$ +u::$/ !s. Court of A::ea$s &n a contract of private carria*e, t(e parties ma vali%l stipulate t(at responsiilit for t(e car*o rests solel on t(e c(arterer, e@emptin* t(e s(ipo=ner from liailit for loss of or %ama*e to t(e car*o cause% even t(e ne*li*ence of t(e s(ip captain. $ursuant to Article 13/6 17 of t(e Civil Co%e, suc( stipulation is vali% ecause it is freel entere% into t(e parties an% t(e same is not contrar to la=, morals, *oo% customs, pulic or%er, or pulic polic. &n%ee%, t(eir contract of private carria*e is not even a contract of a%(esion. Be stress t(at in a contract of private carria*e, t(e parties ma freel stipulate t(eir %uties an% oli*ations =(ic( perforce =oul% e in%in* on t(em. nli;e in a contract involvin* a common carrier, private carria*e %oes not involve t(e *eneral pulic. 0ence, t(e strin*ent provisions of t(e Civil Co%e on common carriers protectin* t(e *eneral pulic cannot :ustifial e applie% to a s(ip transportin* commercial *oo%s as a private carrier. Conseuentl, t(e pulic polic emo%ie% t(erein is not contravene% stipulations in a c(arter part t(at lessen or remove t(e protection *iven la= in contracts involvin* common carriers.
?o7ido !s. Court of A::ea$s (e e@plosion of t(e ne= tire is not a fortuitous event. (ere are (uman factors involve% in t(e situation. (e fact t(at t(e tire =as ne= %i% not impl t(at it =as entirel free from manufacturin* %efects or t(at it =as properl mounte% on t(e ve(icle. Neit(er ma t(e fact t(at t(e tire ou*(t an% use% is of a ran% name note% for ualit, resultin* in t(e conclusion t(at it coul% not e@plo%e =it(in five %aJs use. &t is settle% t(at an acci%ent cause% eit(er %efects in t(e automoile or t(rou*( t(e ne*li*ence of its %river is not a caso fortuito. 4oreover, a common carrier ma not e asolve% from liailit in case of force ma:eure. A common carrier must still prove t(at it =as not ne*li*ent in causin* t(e %eat( or in:ur resultin* from t(e acci%ent. (us, (avin* faile% to overt(ro= t(e presumption of ne*li*ence =it( clear an% convincin* evi%ence, petitioners are (ere (el% liale for %ama*es.
Co:ania Maritia !s. Insurance Co. of North Aerica
(e receipt of *oo%s t(e carrier (as een sai% to lie at t(e foun%ation of t(e contract to carr an% %eliver, an% if actuall no *oo%s are receive% t(ere can e no suc( contract. (e liailit an% responsiilit of t(e carrier un%er a contract for t(e carria*e of *oo%s commence on t(eir actual %eliver to, or receipt , t(e carrier or an aut(orize% a*ent an% %eliver to a li*(ter in c(ar*e of a vessel for s(ipment on t(e vessel, =(ere it is t(e custom to %eliver in t(at =a, is a *oo% %eliver an% in%s t(e vessel receivin* t(e frei*(t, t(e liailit commencin* at t(e time of %eliver to t(e li*(ter an%, similarl, =(ere t(ere is a contract to carr *oo%s from one port to anot(er, an% t(e cannot e loa%e% %irectl on t(e vessel an% li*(ters are sent t(e vessel to rin* t(e *oo%s to it, t(e li*(ters are for t(e time its sustitutes, so t(at t(e ill of lan%in* is applicale to t(e *oo%s as soon as t(e are place% on t(e li*(ters. B(enever t(e control an% possession of *oo%s passes to t(e carrier an% not(in* remains to e %one t(e s(ipper, t(en it can e sai% =it( certaint t(at t(e relation of s(ipper an% carrier (as een estalis(e%. A ill of la%in* is not in%ispensale for t(e creation of a contract of carria*e. (e ill of la%in* is :uri%icall a %ocumentar proof of t (e stipulations an% con%itions a*ree% upon ot( parties. (e liailit of t(e carrier as common carrier e*ins =it( t(e actual %eliver of t(e *oo%s for transportation, an% not merel =it( t(e formal e@ecution of a receipt or ill of la%in*E t(e issuance of a ill of la%in* is not necessar to complete %eliver an% acceptance. ven =(ere it is provi%e% statute t(at liailit commences =it( t(e issuance of t(e ill of la%in*, actual %eliver an% acceptance are sufficient to in% t(e carrier.
(u Do !s. &inaira B(ile %eliver of t(e car*o to t(e consi*nee, or to t(e person =(o (as a ri*(t to receive t(em, contemplate% in Article 1736, ecause in suc( case t(e *oo%s are still in t(e (an%s of t(e Government an% t(e o=ner cannot e@ercise %ominion over t(em, =e elieve (o=ever t(at t(e parties ma a*ree to limit t(e liailit of t(e carrier consi%erin* t(at t(e *oo%s (ave still to t(rou*( t(e inspection of t(e customs aut(orities efore t(e are actuall turne% over to t(e consi*nee. (is is a situation =(ere =e ma sa t(at t(e carrier losses control of t(e *oo%s ecause of a custom re*ulation an% it is unfair t(at it e ma%e responsile for =(at ma (appen %urin* t(e interre*num.
Aerican President (ines (td. !s. 8$e::er Bit( re*ar% to t(e contention of t(e carrier t(at C?GSA s(oul% control in t(is case, t(e same is of as moment. Art. 1763 of t(e Ne= Civil Co%e provi%es t(at Ht(e la=s of t(e countr to =(ic( t(e *oo%s are transporte% s(all *overn t(e liailit of t(e common carrier in case of loss, %estruction an% %eterioration.I (is means t(at t(e la= of t(e $(ilippines on t(e Ne= Civil Co%e. n%er 1766 of NCC, Hin all matter not re*ulate% t(is Co%e, t(e ri*(ts an% oli*ations of common carriers s(all e *overne% t(e Co%e of Commerce an% Special a=s.I Art. 17361738, NCC *overns sai% ri*(ts an% oli*ations. (erefore, alt(ou*( Sec !+# of C?GSA states t(at t(e carrier s(all not e liale in an amount e@cee%in* M+// per pac;a*e unless t(e value of t(e *oo%s (a% een %eclare% t(e s(ipper an% asserte% in t(e ill of la%in*, sai% section is merel supplementar to t(e provisions of t(e Ne= Civil Co%e.
+er!ando !s. Phi$. +tea (e court a uo (el% t(at t(e %eliver of t(e s(ipment in uestion to t(e =are(ouse of t(e 9ureau of
Customs is not t(e %eliver contemplate% Article 1736E an% since t(e urnin* of t(e =are(ouse occurre% efore actual or constructive %eliver of t(e *oo%s to t(e appellees, t(e loss is c(ar*eale a*ainst t(e appellant. &t s(oul% e pointe% out, (o=ever, t(at in t(e ills of la%in* issue% for t(e car*oes in uestion, t(e parties a*ree% to limit t(e responsiilit of t(e carrier for t(e loss or %ama*e t(at ma e cause% to t(e s(ipment t(erein t(e follo=in* stipulationL Clause 1. Carrier s(all not e responsile for loss or %ama*e to s(ipments ille% Ko=nerKs ris;K unless suc( loss or %ama*e is %ue to ne*li*ence of carrier. Nor s(all carrier e responsile for loss or %ama*e cause% force ma:eure, %an*ers or acci%ents of t(e sea or ot(er =atersE =arE pulic enemiesE . . . fire . ... Be sustain t(e vali%it of t(e aove stipulationE t(ere is not(in* t(erein t(at is contrar to la=, morals or pulic polic. Appellees =oul% conten% t(at t(e aove stipulation %oes not in% t(em ecause it =as printe% in fine letters on t(e ac;of t(e ills of la%in*E an% t(at t(e %i% not si*n t(e same. (is ar*ument overloo;s t(e pronouncement of t(is Court in ?n* )iu vs. Court of Appeals, =(ere t(e same issue =as resolve% in t(is =iseL “While it may be true that petitioner had not signed the plane ticket, he is nevertheless bound by the provisions thereof. 'Such provisions have been held to be a part of the contract of carriage, and valid and binding upon the passenger regardless of the latter's lack of knowledge or assent to the regulation'. t is what is known as a contract of 'adhesion', in regards which it has been said that contracts of adhesion wherein one party imposes a ready made form of contract on the other, as the plane ticket in the case at bar, are contracts not entirely prohibited. !he one who adheres to the contract is in reality free to re"ect it entirely# if he adheres, he gives his consent.$
+a$udo r. !s. Court of A::ea$s @cept as ma e pro(iite% la=, t(ere is not(in* to prevent an inverse or%er of events, t(at is, t(e e@ecution of t(e ill of la%in* even prior to actual possession an% control t(e carrier of t(e car*o to e transporte%. (ere is no la= =(ic( reuires t(at t(e %eliver of t(e *oo%s for carria*e an% t(e issuance of t(e coverin* ill of la%in* must coinci%e in point of time or, for t(at matter, t(at t(e former s(oul% prece%e t(e latter. B(ile =e a*ree =it( petitionersK statement t(at an air=a ill estops t(e carrier from %enin* receipt of *oo%s of t(e uantit an% ualit %escrie% in t(e ill, a furt(er rea%in* an% a more fait(ful uotation of t(e aut(orit cite% =oul% reveal t(at !a# ill of la%in* ma contain constituent elements of estoppel an% t(us ecome somet(in* more t(an a contract et=een t(e s(ipper an% t(e carrier. . . . !0o=ever#, as et=een t(e s(ipper an% t(e carrier, =(en no *oo%s (ave een %elivere% for s(ipment no recitals in t(e ill can estop t(e carrier from s(o=in* t(e true facts . . . 9et=een t(e consi*nor of *oo%s an% receivin* carrier, recitals in a ill of la%in* as to t(e *oo%s s(ippe% raise onl a reuttale presumption t(at suc( *oo%s =ere %elivere% for s(ipment. As et=een t(e consi*nor an% a receivin* carrier, t(e fact must out=ei*( t(e recital. (ere is a (ol%in* in most :uris%ictions t(at t(e acceptance of a ill of la%in* =it(out %issent raises a presumption t(at all terms t(erein =ere rou*(t to t(e ;no=le%*e of t(e s(ipper an% a*ree% to (im, an% in t(e asence of frau% or mista;e, (e is estoppe% from t(ereafter %enin* t(at (e assente% to suc( terms. (is rule applies =it( particular force =(ere a s(ipper accepts a ill of la%in* =it( full ;no=le%*e of its contents, an% acceptance un%er suc( circumstances ma;es it a in%in* contract. &n or%er t(at an presumption of assent to a stipulation in a ill of la%in* limitin* t(e liailit of a carrier ma arise, it must appear t(at t(e clause containin* t(is e@emption from liailit plainl forme% a part of t(e contract containe%
in t(e ill of la%in*. A stipulation printe% on t(e ac; of a receipt or ill of la%in* or on papers attac(e% to suc( receipt =ill e uite as effective as if printe% on its face, if it is s(o=n t(at t(e consi*nor ;ne= of its terms. (us, =(ere a s(ipper accepts a receipt =(ic( states t(at its con%itions are to e foun% on t(e ac;, suc( receipt comes =it(in t(e *eneral rule, an% t(e s(ipper is (el% to (ave accepte% an% to e oun% t(e con%itions t(ere to e foun%. @plicit is t(e rule un%er Article 1736 of t(e Civil Co%e t(at t(e e@traor%inar responsiilit of t(e common carrier e*ins from t(e time t(e *oo%s are %elivere% to t(e carrier. (is responsiilit remains in full force an% effect even =(en t(e are temporaril unloa%e% or store% in transit, unless t(e s(ipper or o=ner e@ercises t(e ri*(t of stoppa*e in transitu, an% terminates onl after t(e lapse of a reasonale time for t(e acceptance, of t(e *oo%s t(e consi*nee or suc( ot(er person entitle% to receive t(em. An%, t(ere is %eliver to t(e carrier =(en t(e *oo%s are rea% for an% (ave een place% in t(e e@clusive possession, custo% an% control of t(e carrier for t(e purpose of t(eir imme%iate transportation an% t(e carrier (as accepte% t(em. B(ere suc( a %eliver (as t(us een accepte% t(e carrier, t(e liailit of t(e common carrier commences. ?nl =(en suc( fact of %eliver (as een uneuivocall estalis(e% can t(e liailit for loss, %estruction or %eterioration of *oo%s in t(e custo% of t(e carrier, asent t(e e@ceptin* causes un%er Article 173, attac( an% t(e presumption of fault of t(e carrier un%er Article 173+ e invo;e%.
Maca !s. CA (e e@traor%inar responsiilit of t(e common carriers lasts until actual or constructive %eliver of t(e car*oes to t(e consi*nee or to t(e person =(o (as a ri*(t to receive t(em. $A&SAN 9AN =as in%icate% in t(e ills of la%in* as consi*nee =(ereas G$C =as t(e notif part. 0o=ever, in t(e e@port invoices G$C =as clearl name% as uerFimporter. $etitioner also referre% to G$C as suc( in (is %eman% letter to respon%ent BA4 an% in (is complaint efore t(e trial court. (is premise %ra=s us to conclu%e t(at t(e %eliver of t(e car*oes to G$C as uerFimporter =(ic(, conformal =it( Art. 1736 (a%, ot(er t(an t(e consi*nee, t(e ri*(t to receive t(em =as proper. (e real issue is =(et(er respon%ents are liale to petitioner for releasin* t(e *oo%s to G$C =it(out t(e ills of la%in* or an; *uarantee. 'rom t(e testimon of petitioner, =e *at(er t(at (e (as een transactin* =it( G$C as uerFimporter for aroun% t=o !2# or t(ree !3# ears alrea%. B(en man*oes an% =atermelons are in season, (is s(ipment to G$C usin* t(e facilities of respon%ents is t=ice or t(rice a =ee;. (e *oo%s are release% to G$C. &t (as een t(e practice of petitioner to reuest t(e s(ippin* lines to imme%iatel release peris(ale car*oes suc( as =atermelons an% fres( man*oes t(rou*( telep(one calls (imself or (is people. &n transactions covere% a letter of cre%it, an; *uarantee is normall reuire% t(e s(ippin* lines prior to releasin* t(e *oo%s. 9ut for uers usin* tele*rap(ic transfers, petitioner %ispenses =it( t(e an; *uarantee ecause t(e *oo%s are alrea% full pai%. &n (is several ears of usiness relations(ip =it( G$C an% respon%ents, t(ere =as not a sin*le instance =(en t(e ill of la%in* =as first presente% efore t(e release of t(e car*oes.
Maers (ine !s. CA B(ile it is true t(at common carriers are not oli*ate% la= to carr an% to %eliver merc(an%ise, an% persons are not veste% =it( t(e ri*(t to prompt %eliver, unless suc( common carriers previousl
assume t(e oli*ation to %eliver at a *iven %ate or time, %eliver of s(ipment or car*o s(oul% at least e ma%e =it(in a reasonale time. B(ile t(ere =as no special contract entere% into t(e parties in%icatin* t(e %ate of arrival of t(e su:ect s(ipment, petitioner nevert(eless, =as ver =ell a=are of t(e specific %ate =(en t(e *oo%s =ere e@pecte% to arrive as in%icate% in t(e ill of la%in* itself. &n t(is re*ar%, t(ere arises no nee% to e@ecute anot(er contract for t(e purpose as it =oul% e a mere superfluit. &n t(e case efore us, =e fin% t(at a %ela in t(e %eliver of t(e *oo%s spannin* a perio% of t=o mont(s an% seven %as falls =as eon% t(e realm of reasonaleness.
?sae$ !s. &arretto imitin* t(e common carrierJs liailit for loss or %ama*e from an cause or for an reason for less t(an 1F8 t(e actual value of t(e *oo%s is unconscionale an% t(erefore a*ainst pulic polic. A common carrier cannot la=full stipulate for e@emption from liailit, unless suc( e@emption is :ust an% reasonale an% t(e contract is freel an% fairl ma%e.
+he)ara !s. Phi$i::ine Air$ines &t can not e sai% t(at a contract (as een entere% into et=een a passen*er an% t(e common carrier, emo%in* t(e con%itions as printe% at t(e ac; of t(e tic;et. (e fact t(at t(ose con%itions are printe% at t(e ac; of t(e tic;et stu in letters so small t(at t(e are (ar% to rea% =oul% not =arrant t(e presumption t(at t(e passen*er =as a=are of t(ose con%itions suc( t(at (e (a% fairl an% freel a*ree% to t(ose con%itions. (e passen*er is consi%ere% not (avin* a*ree% to t(e stipulation on t(e tic;et, as manifeste% t(e fact t(at (e %i% not si*n t(e tic;et.
Ong ?iu !s. Court of A::ea$s B(ile it ma e true t(at t(e passen*er (a% not si*ne% t(e plane tic;et, (e is nevert(eless oun% t(e provisions t(ereof. Suc( provisions (ave een (el% to e a part of t(e contract of carria*e, an% vali% an% in%in* upon t(e passen*er re*ar%less of t(e latterKs lac; of ;no=le%*e or assent to t(e re*ulation. &t is =(at is ;no=n as a contract of a%(esion, in re*ar%s =(ic( it (as een sai% t(at contracts of a%(esion =(erein one part imposes a rea% ma%e form of contract on t(e ot(er, as t(e plane tic;et in t(e case at ar, are contracts not entirel pro(iite%. (e one =(o a%(eres to t(e contract is in realit free to re:ect it entirelE if (e a%(eres, (e *ives (is consent. A contract limitin* liailit upon an a*ree% valuation %oes not offen% a*ainst t(e polic of t(e la= fori%%in* one from contractin* a*ainst (is o=n ne*li*ence.
+ea (and +er!ices Inc. !s. IAC Since t(e liailit of a common carrier for loss of or %ama*e to *oo%s transporte% it un%er a contract of carria*e so *overne% t(e la=s of t(e countr of %estination an% t(e *oo%s in uestion =ere s(ippe% from t(e nite% States to t(e $(ilippines, t(e liailit of common carrier to t(e consi*nee is *overne% primaril t(e Civil Co%e. Applin* t(e Civil Co%e provisions !Article 17" an% 17+/# t(e stipulation in t(e ill of la%in* limitin* t(e liailit of t(e common carrier for loss or %ama*es to t(e s(ipment covere% sai% rule unless t(e s(ipper %eclares t(e value of t(e s(ipment an% pas a%%itional c(ar*es is vali% an% in%in* on t(e consi*nee.
Citade$ (ines Inc. !s. CA 9asic is t(e rule t(at a stipulation limitin* t(e liailit of t(e carrier to t(e value of t(e *oo%s appearin* in t(e ill of la%in*, unless t(e s(ipper or o=ner %eclares a *reater value, is in%in*. 'urt(ermore, a contract fi@in* t(e sum t(at ma e recovere% t(e o=ner or s(ipper for t(e loss, %estruction or %eterioration of t(e *oo%s is vali%, if it is reasonale an% :ust un%er t(e circumstances, an% (as een fairl an% freel a*ree% upon. &n t(is case, t(e a=ar% ase% on t(e alle*e% mar;et value of t(e *oo%s is erroneous. &t is provi%e% in a clause in t(e 9? t(at its liailit is limite% to SM2.//F;ilo. (e consi*nee also a%mits in t(e memoran%um t(at t(e value of t(e *oo%s %oes not appear in t(e ill of la%in*. 0ence, t(e stipulation on t(e carrierJs limite% liailit applies.
E!erett +eashi: Cor:. !s. CA &n t(e ill of la%in*, t(e carrier ma%e it clear t(at all claims for =(ic( it ma e liale s(all e a%:uste% an% settle% on t(e asis of t(e s(ipperKs net invoice cost plus frei*(t an% insurance premiums, if pai%, an% in no event s(all t(e carrier e liale for an loss of possile profits or an conseuential loss. &ts liailit =oul% onl e up to ?ne 0un%re% (ousan% !)1//,///.//# )en. 0o=ever, t(e s(ipper, (a% t(e option to %eclare a (i*(er valuation if t(e value of its car*o =as (i*(er t(an t(e limite% liailit of t(e carrier. Consi%erin* t(at t(e s(ipper %i% not %eclare a (i*(er valuation, it (a% itself to lame for not complin* =it( t(e stipulations. (e commercial &nvoice %oes not in itself sufficientl an% convincin*l s(o= t(at t(e common carrier (as ;no=le%*e of t(e value of t(e car*o as conten%e% t(e s(ipper.
&ritish Air)a/s !s. CA (e contract of transportation =as e@clusivel et=een t(e passen*er an% common carrier 9A. (e latter merel en%orsin* t(e 4anila to 0on* on* lo* of t(e formerJs :ourne to $A, as its sucontractor or a*ent. Con%itions of contracts =ere one of continuous air transportation. Bellsettle% rule t(at an a*ent is also responsile for an ne*li*ence in t(e performance of its function an% is liale for %ama*es =(ic( t(e principal ma suffer reason of its ne*li*ent act. B(en an action is ase% on reac( of contract of carria*e, t(e passen*er can onl sue 9A an% not $A, since t(e latter =as not a part in t(e contract. (e contention of 9A =it( respect to limite% liailit =as overrule% alt(ou*( it is reco*nize% in t(e $(ilippines, statin* t(at 9A (a% =aive% t(e %efense of limite% liailit =(en it allo=e% 4a(tani!t(e passen*er# to testif as to t(e actual %ama*es (e incurre% %ue to t(e misplacement of (is lu**a*e, =it(out an o:ection.
G.E. Geacoc Co. !s. Macondra/ (ree ;in%s of stipulations (ave often een ma%e in a ill of la%in*. (e first is one e@emptin* t(e carrier from an an% all liailit for loss or %ama*e occasione% its o=n ne*li*ence. (e secon% is one provi%in* for an unualifie% limitation of suc( liailit to an a*ree% valuation. An% t(e t(ir% is one limitin* t(e liailit of t(e carrier to an a*ree% valuation unless t(e s(ipper %eclares a (i*(er value an% pas a (i*(er
rate of frei*(t. Accor%in* to an almost uniform =ei*(t of aut(orit, t(e first an% secon% ;in%s of stipulations are invali% as ein* contrar to pulic polic, ut t(e t(ir% is vali% an% enforceale. &f a common carrier *ives to a s(ipper t(e c(oice of t=o rates an% if t(e s(ipper ma;es suc( a c(oice, un%erstan%in*l an% freel, an% names (is valuation, (e cannot t(ereafter recover more t(an t(e value =(ic( (e t(us places upon (is propert. A limitation of liailit ase% upon an a*ree% value %oes not conflict =it( an soun% principle of pulic policE an% it is not conformale to plain principles of :ustice t(at a s(ipper ma un%erstate value in or%er to re%uce t(e rate an% t(en recover a lar*er value in case of loss.
+)eet (ines Inc. !s. TE,E+ Consi%ere% in t(e li*(t of circumstances prevailin* in t(e interislan% s(ippin* in%ustr in t(e countr to%a, Be fin% an% (ol% t(at Con%ition No. 1 printe% at t(e ac; of t(e passa*e tic;ets s(oul% e (el% as voi% an% unenforceale for t(e follo=in* reasons first, un%er circumstances oli*ation in t(e inter islan% s(ippin* in%ustr, it is not :ust an% fair to in% passen*ers to t(e terms of t(e con%itions printe% at t(e ac; of t(e passa*e tic;ets, on =(ic( Con%ition No. 1 is $rinte% in fine letters, an% secon%, Con%ition No. 1 suverts t(e pulic polic on transfer of venue of procee%in*s of t(is nature, since t(e same =ill pre:u%ice ri*(ts an% interests of innumerale passen*ers locate% in %ifferent places of t(e countr =(o, un%er Con%ition No. 1, =ill (ave to file suits a*ainst petitioner onl in t(e Cit of Ceu. Consi%erin* t(e e@pense an% troule a passen*er resi%in* outsi%e of Ceu Cit =oul% incur to prosecute a claim in t(e Cit of Ceu, (e =oul% most proal %eci%e not to file t(e action at all. (e con%ition =ill t(us %efeat, instea% of en(ance, t(e en%s of :ustice. pon t(e ot(er (an%, petitioner (as ranc(es or offices in t(e respective ports of call of its vessels an% can affor% to liti*ate in an of t(ese places. 0ence, t(e filin* of t(e suit in t(e C'& of 4isamis ?riental, as =as %one in t(e instant case, =ill not cause inconvenience to, muc( less pre:u%ice, petitioner. n%er Art. 222/ of t(e Civil Co%e, moral %ama*es are :ustl %ue in reac(es of contract =(ere t(e %efen%ant acte% frau%ulentl or in a% fait(. 9ot( t(e rial Court an% t(e Appellate Court foun% t(at t(ere =as a% fait( on t(e part of petitioner in t(atL !1# Defen%ants Appellants %i% not *ive notice to plaintiffsappellates as to t(e c(an*e of sc(e%ule% of t(e vesselE !2# no=in* full =ell t(at it =oul% ta;e no less t(an fifteen (ours to effect t(e repairs of t(e %ama*e% en*ine, %efen%ants appellants instea% ma%e announce ment of assurance t(at t(e vessel =oul% leave =it(in a s(ort perio% of time, an% =(en plaintiffappellees =ante% to leave t(e port an% *ave up t(e trip, %efen%ants appellants emploees =oul% come an% sa, H=e are leavin* alrea%I. !3# Defen%ants appellants %i% not offer to refun% plaintiffsappelleesJ tic;ets nor provi%e t(em =it( transportation form acloan to Catalo*an.
uisu7ing +r. !s. Court of A::ea$s (e (i*(:ac;in*roer =as force ma:eure. (e (i:ac;ers %o not oar% an airplane t(rou*( a latant %ispla of firepo=er an% violent fur. 'irearms, (an%*rena%es, %namite, an% e@plosives are intro%uce% into t(e airplane surreptitiousl an% =it( t(e utmost cunnin* an% stealt(, alt(ou*( t(ere is an occasional use of innocent (osta*es =(o =ill e col%l mur%ere% unless a plane is *iven to t(e (i:ac;ersK complete %isposal.
$A =as not ne*li*ent so as to overcome t(e force ma:eure nature of t(e (i:ac;in*. 0i:ac;ers %o not oar% an airplane t(rou*( a latant %ispla of firepo=er an% violent fur. 'irearms an% *rena%es are rou*(t to t(e plane surreptitiousl. $A coul% not (ave een faulte% for =ant of %ili*ence, particularl for failin* to ta;e positive measures to implement Civil Aeronautics A%ministration re*ulations pro(iitin* civilians from carrin* firearms on oar% t(e plane. (e use of t(e most sop(isticate% electronic %etection %evices ma (ave minimize% (i:ac;in* ut still ineffective a*ainst trul %eterminin* (i:ac;ers.
Pan Aerican Jor$d Air)a/s Inc. !s. Ra:adas (e Barsa= Convention *overns t(e availment of t(e liailit limitations =(ere t(e a**a*e c(ec; is comine% =it( or incorporate% in t(e passen*er tic;et. &n t(e case at ar, t(e a**a*e c(ec; is comine% =it( t(e passen*er tic;et in one %ocument of carria*e. (e passen*er tic;et complies =it( Article 3, =(ic( provi%esL !c# a notice to t(e effect t(at, if t(e passen*erKs :ourne involves an ultimate %estination or stop in a countr ot(er t(an t(e countr of %eparture, t(e Barsa= Convention ma e applicale an% t(at t(e Convention *overns an% in most cases limits t(e liailit of carriers for %eat( or personal in:ur an% in respect of loss of or %ama*e to a**a*e. (e provisions in t(e plane tic;et are sufficient to *overn t(e limitations of liailities of t(e airline for loss of lu**a*e. (e passen*er, upon contractin* =it( t(e airline an% receivin* t(e plane tic;et, =as e@pecte% to e vi*ilant insofar as (is lu**a*e is concerne%. &f t(e passen*er fails to a%%uce evi%ence to overcome t(e stipulations, (e cannot avoi% t(e application of t(e liailit limitations. (e facts s(o= t(at t(e private respon%ent actuall refuse% to re*ister t(e attac(e case an% c(ose to ta;e it =it( (im %espite (avin* een or%ere% t(e $ANA4 a*ent to c(ec; it in. &n attemptin* to avoi% re*isterin* t(e lu**a*e *oin* ac; to t(e line, private respon%ent manifeste% a %isre*ar% of airline rules on allo=ale (an%carrie% a**a*es. $ru%ence of a reasonal careful person also %ictates t(at cas( an% :e=elr s(oul% e remove% from c(ec;e%inlu**a*e an% place% in oneKs poc;ets or in a (an%carrie% 4anilapaper or plastic envelope. (e alle*e% lac; of enou*( time for (im to ma;e a %eclaration of a (i*(er value an% to pa t(e correspon%in* supplementar c(ar*es cannot :ustif (is failure to compl =it( t(e reuirement t(at =ill e@clu%e t(e application of limite% liailit.
A$ita$ia !s. Interediate A::e$$ate Court (e Barsa= ConventionKs provisions, %o not re*ulate or e@clu%e liailit for ot(er reac(es of contract t(e carrierK or miscon%uct of its officers an% emploees, or for some particular or e@ceptional tpe of %ama*e, ?t(er=ise, an air carrier =oul% e e@empt from an liailit for %ama*es in t(e event of its asolute refusal, in a% fait(, to compl =it( a contract of carria*e, =(ic( is asur%. &n t(e case at ar, no a% fait( or ot(er=ise improper con%uct ma e ascrie% to t(e emploees of petitioner airlineE an% Dr. $aloKs lu**a*e =as eventuall returne% to (er, elate%l, it is true, ut =it(out appreciale %ama*e. (ere can e no %out t(at Dr. $alo un%er=ent profoun% %istress an% an@iet, =(ic( *ra%uall turne% to panic an% finall %espair, from t(e time s(e learne% t(at (er suitcases =ere missin* up to t(e time =(en, (avin* *one to ome, s(e finall realize% t(at s(e =oul% no lon*er e ale to ta;e part in t(e conference. Certainl, t(e compensation for t(e in:ur suffere% Dr. $alo cannot un%er t(e circumstances e restricte% to t(at prescrie% t(e Barsa= Convention for %ela in t(e transport of a**a*e.
S(e is not, of course, entitle% to e compensate% for loss or %ama*e to (er lu**a*e. As alrea% mentione%, (er a**a*e =as ultimatel %elivere% to (er in 4anila, tar%il, ut safel.
Nocu !s. (aguna Ta/a7as &us Co:an/ 'airness 'airness %eman%s %eman%s t(at in measurin* measurin* a common carrierKs carrierKs %ut to=ar%s to=ar%s its passen*ers, passen*ers, allo=ance allo=ance must e *iven to t(e reliance t(at s(oul% e repose% on t(e sense of responsiilit of all t(e passen*ers in re*ar% to t(eir common safet. &t is to e presume% t(at a passen*er =ill not ta;e =it( (im ant(in* %an*erous to t(e lives an% lims of (is copassen*ers, not to spea; of (is o=n. Not to e li*(tl consi%ere% must e t(e ri*(t to privac to =(ic( eac( passen*er is entitle%. 0e cannot e su:ecte% to an unusual searc(, =(en (e protests t(e innocuousness of (is a**a*e an% not(in* appears to in%icate t(e contrar, as in t(e case at ar. &n ot(er =or%s, inuir ma e verall ma%e as to t(e nature of a passen*erKs a**a*e =(en suc( is not out=ar%l perceptile, ut eon% t(is, constitutional oun%aries are alrea% in %an*er of ein* trans*resse%. Callin* a policeman to (is ai%, as su**este% t(e service manual invo;e% t(e trial :u%*e, in compellin* t(e passen*er to sumit to more ri*i% inspection, after t(e passen*er (a% alrea% %eclare% t(at t(e o@ containe% mere clot(es an% ot(er miscellaneous, coul% not (ave :ustifie% invasion of a constitutionall protecte% %omain.
Mecenas !s. CA (e e(aviour of t(e captain of t(e Don 5uan in tills instanceplain* ma(:on* efore an% up to t(e time of collision constitutes e(aviour t(at is simpl unacceptale on t(e part of t(e master of a vessel to =(ose (an%s t(e lives an% =elfare of at least seven (un%re% fift !7+/# passen*ers (a% een entruste%. B(et(er or not Capt. Santistean =as off%ut or on%ut at or aroun% t(e time of actual collision is uite immaterialE t(ere is, ot( realisticall spea;in* an% in contemplation of la=, no suc( t(in* as off%ut (ours for t(e master of a vessel at sea t(at is a common carrier upon =(om t(e la= imposes t(e %ut of e@traor%inar %ili*ence. (e recor% s(o=s t(at t(e Don 5uan san; =it(in ten !1/# to fifteen !1+# minutes after initial contact =it( t(e acloan Cit. B(ile t(e failure of Capt. Santistean to supervise (is officers an% cre= in t(e process of aan%onin* t(e s(ip an% (is failure to avail of measures to prevent t(e too rapi% sin;in* of (is vessel after collision, %i% not cause t(e collision t(emselves, suc( failures %outless contriute% materiall to t(e conseuent loss of life an%, moreover, =ere in%icative of t(e ;in% an% level of %ili*ence e@ercise% Capt. Santistean in respect of (is vessel an% (is officers an% men prior to actual contact et=een et=een t(e t=o !2# vessels. vessels. (e officeron=atc( officeron=atc( in t(e Don 5uan a%mitte% t(at (e (a% faile% to inform Capt. Santistean not onl of t(e imminent %an*er of collision ut even of t(e actual collision itself (ere is also evi%ence t(at t(e Don 5uan =as carrin* more passen*ers t(an s(e (a% een certifie% as allo=e% to carr. n%er t(ese circumstances, a presumption of *ross ne*li*ence on t(e part of t(e vessel !(er officers an% cre=# an% of its s(ipo=ner arises.
Negros Na!igation Co. Inc. !s. CA
(e Dut to e@ercise %ue %ili*ence inclu%es t(e %ut to ta;e passen*ers or car*oes t(at are =it(in t(e carrin* capacit of t(e vessel. !Same ulin* =it( 4ecenas#
8orean Air$ines Co. (TD. !s. CA (e status of apuz as stan% passen*er =as c(an*e% to t(at of a confirme% passen*er =(en (is name =as entere% in t(e passen*er manifest of A for its 'li*(t No. "/3. 0is clearance t(rou*( immi*ration immi*ration an% customs clearl s(o=s t(at (e (a% in%ee% in%ee% een confirme% confirme% as a passen*er of A in t(at fli*(t. A t(us committe% a reac( of t(e contract of carria*e et=een t(em =(en it faile% to rin* apuz to (is %estination. (is Court (as (el% t(at a contract to transport passen*ers is %ifferent in ;in% an% %e*ree from an ot(er contractual relation. (e usiness of t(e carrier is mainl =it( t(e travelin* pulic. &t invites people to avail t(emselves of t(e comforts an% a%vanta*es it offers. (e contract of air carria*e *enerates a relation atten%e% =it( a pulic %ut. $assen*ers (ave t(e ri*(t to e treate% t(e carrierKs emploees =it( ;in%ness, respect, courtes an% %ue consi%eration. (e are entitle% to e protecte% a*ainst personal miscon%uct, in:urious lan*ua*e, in%i*nities an% auses from suc( emploees. So it is t(at an %iscourteous con%uct on t(e part of t(ese emploees to=ar% a passen*er *ives t(e latter an action for %ama*es a*ainst t(e carrier.
Fortune E-:ress Inc. !s. CA Art. 1763 of t(e Civil Co%e provi%es t(at a common carrier is responsile for in:uries suffere% a passen*er on account of =ilfull acts of ot(er passen*ers, if t(e emploees of t(e common carrier coul% (ave prevente% t(e act t(rou*( t(e e@ercise of t(e %ili*ence of a *oo% fat(er of a famil. &n t(e present case, it is clear t(at ecause of t(e ne*li*ence ne*li*ence of petitionerK petitionerKss emploees, emploees, t(e seizure seizure of t(e us 4anan**olo 4anan**olo an% (is men =as ma%e possile. Despite =arnin* t(e $(ilippine Constaular at Ca*aan %e ?ro t(at t(e 4aranaos =ere plannin* to ta;e reven*e on t(e petitioner urnin* some of its uses an% t(e assurance of petitionerKs operation mana*er, Dios%a%o 9ravo, t(at t(e necessar precautions =oul% e ta;en, petitioner %i% not(in* to protect t(e safet of its passen*ers. 0a% petitioner an% its emploees een vi*ilant t(e =oul% not (ave faile% to see t(at t(e malefactors (a% a lar*e uantit of *asoline =it( t(em. n%er t(e circumstances, simple precautionar measures to protect t(e safet of passen*ers, suc( as fris;in* passen*ers an% inspectin* inspectin* t(eir a**a*es, a**a*es, preferal =it( nonintrusi nonintrusive ve *a%*ets *a%*ets suc( as metal %etectors, efore allo=in* t(em on oar% coul% (ave een emploe% =it(out violatin* t(e passen*erKs constitutional ri*(ts. (e acts of 4aranaos coul% not e consi%ere% as caso fortuito ecause t(ere =as alrea% a =arnin* t(e $C. No contriutor ne*li*ence coul% e attriute% to t(e %ecease%. (e assailantKs motive =as to retaliate for t(e loss of life of t=o 4aranaos as a result of t(e collision et=een petitionerKs us an% t(e :eepne in =(ic( t(e t=o 4aranaos =ere ri%in*. (e arme% men actuall allo=e% %ecease% to retrieve somet(in* from t(e us. B(at apparentl an*ere% t(em =as (is attempt to (elp t(e %river of t(e us plea%in* for (is life.
#atcha$ian !s. De$i
(e recor% iel%s affirmative evi%ence of fault or ne*li*ence on t(e part of respon%ent common carrier. (e %river %i% not stop to c(ec; if ant(in* (a% *one =ron* =it( t(e us =(en t(e snappin* soun% =as (ear% an% ma%e ;no=n to (im t(e passen*ers, instea% tol% t(em t(at it =as normal. (e %riverKs repl necessaril in%icate% t(at t(e same snappin* soun% (a% een (ear% in t(e us on previous occasions. (is coul% onl mean t(at t(e us (a% not een c(ec;e% p(sicall or mec(anicall to %etermine =(at =as causin* t(e snappin* soun% =(ic( (a% occurre% so freuentl t(at t(e %river (a% *otten accustome% to it. Suc( a soun% is oviousl alien to a motor ve(icle in *oo% operatin* con%ition, an% even a mo%icum of concern for life an% lim of passen*ers %ictate% t(at t(e us e c(ec;e% an% repaire%. (e ovious continue% failure of respon%ent to loo; after t(e roa%=ort(iness an% safet of t(e us, couple% =it( t(e %riverKs refusal or ne*lect to stop t(e minius after (e (a% (ear% once a*ain t(e snappin* soun% an% t(e cr of alarm from one of t(e passen*ers, constitute% =anton %isre*ar% of t(e p(sical safet of t(e passen*ers, an% (ence *ross ne*li*ence on t(e part of respon%ent an% (is %river. 9ecause =(at is involve% (ere is t(e liailit of a common carrier for in:uries sustaine% passen*ers in respect of =(ose safet a common carrier must e@ercise e@traor%inar %ili*ence, =e must construe construe an suc( purporte% purporte% =aiver most strictl strictl a*ainst t(e common carrier. carrier. 'or a =aiver to e vali% an% effective, it must not e contrar to la=, morals, pulic polic or *oo% customs. A cursor e@amination of t(e purporte% =aiver =ill rea%il s(o= t(at appellees %i% not actuall =aive t(eir ri*(t to claim %ama*es from appellant for t(e latterKs failure to compl =it( t(eir contract of carria*e. All t(at sai% %ocument proves is t(at t(e e@presse% a %esire to ma;e t(e =aiver =(ic( oviousl is not t(e same as ma;in* an actual =aiver of t(eir ri*(t. A =aiver of t(e ;in% invo;e% appellant must e clear an% uneuivocal. A person is entitle% to t(e p(sical inte*rit of (is or (er o%E if t(at inte*rit is violate% or %iminis(e%, actual in:ur is suffere% for =(ic( actual or compensator %ama*es are %ue an% assessale. $etitioner Gatc(alian is entitle% to e place% as nearl as possile in t(e con%ition t(at s(e =as efore mis(ap. A scar, especiall one on t(e face of t(e =oman, resultin* from t(e infliction of in:ur upon (er, is a violation of o%il inte*rit, *ivin* raise to a le*itimate claim for restoration to (er con%ition ante.
De$ Casti$$o !s. a/a$in Common carriers are responsile for t(e %eat( of t(eir passen*ers !Articles 176 an% 22/6 of t(e Civil Co%e#. (is liailit inclu%es t(e loss of t(e earnin* capacit of t(e %ecease%. &t appears proven t(at t(e %efen%ant corporations faile% to e@ercise t(e %ili*ence t(at =as t(eir %ut to oserve accor%in* to Articles 1733 an% 17++. (e con%uctor =as apprise% of t(e fact t(at 4ario %el Castillo =as %eaf an% %um. Bit( t(is ;no=le%*e t(e con%uctor s(oul% (ave ta;en e@traor%inar care for t(e safet of t(e sai% passen*er. &n t(is (e faile%.
Phi$. Ra77it &us (ines !s. IAC (e principle aout t(e last clear c(ance, =oul% call for application in a suit et=een t(e o=ners an% %rivers of t(e t=o colli%in* colli%in* ve(icles. &t %oes not arise =(ere a passen*er passen*er %eman%s responsiilit responsiilit from t(e carrier to enforce its contractual oli*ations. 'or it =oul% e ineuitale to e@empt t(e ne*li*ent %river of t(e :eepne an% its o=ners on t(e *roun% t(at t(e ot(er %river =as li;e=ise *uilt of ne*li*ence. &t is t(e rule un%er t(e sustantial factor test t(at if t(e actorKs con%uct is a sustantial factor in rin*in* aout (arm to anot(er, t(e fact t(at t(e actor neit(er foresa= nor s(oul% (ave foreseen t(e e@tent of t(e (arm or t(e manner in =(ic( it occurre% %oes not prevent (im from ein* liale. (e us %riverKs
con%uct is not a sustantial factor in rin*in* aout (arm to t(e passen*ers of t(e :eepne. &t cannot e sai% t(at t(e us =as travellin* at a fast spee% =(en t(e acci%ent occurre% ecause t(e spee% of 8/ to "/ ;ilometers per (our, assumin* suc( calculation to e correct, is et =it(in t(e spee% limit allo=e% in (i*(=as.
&ustaante !s. CA (e %octrine, state% roa%l, is t(at t(e ne*li*ence of t(e plaintiff %oes not preclu%e a recover for t(e ne*li*ence of t(e %efen%ant =(ere it appears t(at t(e %efen%ant, e@ercisin* reasonale care an% pru%ence, mi*(t (ave avoi%e% in:urious conseuences to t(e plaintiff not=it(stan%in* t(e plaintiffKs ne*li*ence. &n ot(er =or%s, t(e %octrine of last clear c(ance means t(at even t(ou*( a personKs o=n acts ma (ave place% (im in a position of peril, an% an in:ur results, t(e in:ure% person is entitle% to recover. As t(e %octrine is usuall state%, a person =(o (as t(e last clear c(ance or opportunit of avoi%in* an acci%ent, not=it(stan%in* t(e ne*li*ent acts of (is opponent or t(at of a t(ir% person impute% to t(e opponent is consi%ere% in la= solel responsile for t(e conseuences of t(e acci%ent. All premises consi%ere%, t(e Court is convince% t(at t(e respon%ent Court committe% an error of la= in applin* t(e %octrine of last clear c(ance as et=een t(e %efen%ants, since t(e case at ar is not a suit et=een t(e o=ners an% %rivers of t(e colli%in* ve(icles ut a suit rou*(t t(e (eirs of t(e %ecease% passen*ers a*ainst ot( o=ners an% %rivers of t(e colli%in* ve(icles. (erefore, t(e respon%ent court erre% in asolvin* t(e o=ner an% %river of t(e car*o truc; from liailit.
(ara !s. ,a$encia (e o=ner an% %river of a ve(icle o=es to accommo%ation passen*ers or invite% *uests merel t(e %ut to e@ercise reasonale care so t(at t(e ma e transporte% safel to t(eir %estination. (us, (e rule is estalis(e% =ei*(t of aut(orit t(at t(e o=ner or operator of an automoile o=es t(e %ut to an invite% *uest to e@ercise reasonale care in its operation, an% not unreasonal to e@pose (im to %an*er an% in:ur increasin* t(e (azar% of travel. (e o=ner of t(e ve(icle in t(e case at ar is onl reuire% to oserve or%inar care, an% is not in %ut oun% to e@ercise e@traor%inar %ili*ence as reuire% our la=. A passen*er must oserve t(e %ili*ence of a fat(er of a famil to avoi% in:ur to (imself =(ic( means t(at if t(e in:ur to t(e passen*er (as een pro@imatel cause% (is o=n ne*li*ence, t(e carrier cannot e (el% liale.
Necessito !s. Paras B(ile t(e carrier is not an insurer of t(e safet of t(e passen*ers, it s(oul% nevert(eless e (el% to ans=er for t(e la=s its euipment if suc( fla=s =ere at all %iscoverale. &n t(is connection, t(e manufacturer of t(e %efective appliance is consi%ere% in la= t(e a*ent of t(e carrier, an% t(e *oo% repute of t(e manufacturer =ill not relieve t(e carrier from liailit. (e rationale of t(e carrierKs liailit is t(e fact t(at t(e passen*er (as no privit =it( t(e manufacturer of t(e %efective euipmentE (ence, (e (as no reme% a*ainst (im, =(ile t(e carrier usuall (as.
a:an Air$ines !s. CA
Accor%in*l, t(ere is no uestion t(at =(en a part is unale to fulfill (is oli*ation ecause of force ma:eure, t(e *eneral rule is t(at (e cannot e (el% liale for %ama*es for nonperformance. Corollaril, =(en 5A =as prevente% from resumin* its fli*(t to 4anila %ue to t(e effects of 4t. $inatuo eruption, =(atever losses or %ama*es in t(e form of (otel an% meal e@penses t(e stran%e% passen*ers incurre%, cannot e c(ar*e% to 5A. )et it is un%eniale t(at 5A assume% t(e (otel e@penses of respon%ents for t(eir une@pecte% overni*(t sta on 5une 1+, 1""1. &t (as een (el% t(at airline passen*ers must ta;e suc( ris;s inci%ent to t(e mo%e of travel. &n t(is re*ar%, a%verse =eat(er con%itions or e@treme climatic c(an*es are some of t(e perils involve% in air travel, t(e conseuences of =(ic( t(e passen*er must assume or e@pect. B(ile 5A =as no lon*er reuire% to %efra private respon%entsK livin* e@penses %urin* t(eir sta in Narita on account of t(e fortuitous event, 5A (a% t(e %ut to ma;e t(e necessar arran*ements to transport private respon%ents on t(e first availale connectin* fli*(t to 4anila. $etitioner 5A rene*e% on its oli*ation to loo; after t(e comfort an% convenience of its passen*ers =(en it %eclassifie% private respon%ents from transit passen*ers to ne= passen*ers as a result of =(ic( private respon%ents =ere oli*e% to ma;e t(e necessar arran*ements t(emselves for t(e ne@t fli*(t to 4anila.
(a/ugan !s. IAC es ipsa louitur is a %octrine =(ic( states t(usL B(ere t(e t(in* =(ic( causes in:ur is s(o=n to e un%er t(e mana*ement of t(e %efen%ant, an% t(e acci%ent is suc( as in t(e or%inar course of t(in*s %oes not (appen if t(ose =(o (ave t(e mana*ement use proper care, it affor%s reasonale evi%ence, in t(e asence of an e@planation t(e %efen%ant, t(at t(e acci%ent arose from =ant of care. (e %octrine of es ipsa louitur as a rule of evi%ence is peculiar to t(e la= of ne*li*ence =(ic( reco*nizes t(at prima facie ne*li*ence ma e estalis(e% =it(out %irect proof an% furnis(es a sustitute for specific proof of ne*li*ence. (e %octrine can e invo;e% =(en an% onl =(en, un%er t(e circumstances involve%, %irect evi%ence is asent an% not rea%il availale. B(et(er t(e car*o truc; =as par;e% alon* t(e roa% or on (alf t(e s(oul%er of t(e ri*(t si%e of t(e roa% =oul% e of no moment ta;in* into account t(e =arnin* %evice consistin* of t(e li*(te% ;erosene lamp place% t(ree or four meters from t(e ac; of t(e truc;. 9ut %espite t(is =arnin* =(ic( =e rule as sufficient, t(e &suzu truc; %riven Daniel Serrano, an emploee of t(e private respon%ent, still umpe% t(e rear of t(e par;e% car*o truc;. As a %irect conseuence of suc( acci%ent t(e petitioner sustaine% in:uries on (is left forearm an% left foot. &t is clear t(erefore t(at t(e asence or =ant of care of Daniel Serrano (as een estalis(e% clear an% convincin* evi%ence. &t follo=s t(at t(e %octrine of es ipsa louitur is inapplicale, ma;in* t(e emploer of t(e %river liale for t(e ne*li*ence of (is emploee.
(a Ma$$orca !s. CA (e liailit of t(e carrier for t(e c(il%, =(o =as alrea% le% t(e fat(er to a place aout + meters a=a from t(e us for (er safet un%er t(e contract of carria*e, persists. (e relation of carrier an% passen*er %oes not necessaril cease =(ere t(e latter, after ali*(tin* from t(e car, ai%s t(e carrierKs servant or emploee in removin* (is a**a*e from t(e car. &t (as een reco*nize% as a rule t(at t(e relation of carrier an% passen*er %oes not cease at t(e moment t(e passen*er ali*(ts from t(e carrierKs ve(icle at a place selecte% t(e carrier at t(e point of %estination, ut continues until t(e passen*er (as (a% a reasonale time or a reasonale opportunit to leave t(e carrierKs premises. An%, =(at is a reasonale time or a reasonale %ela =it(in t(is rule is to e %etermine% from all t(e circumstances.
A7oiti +hi::ing Co. !s. CA (e rule is t(at t(e relation of carrier an% passen*er continues until t(e passen*er (as een lan%e% at t(e port of %estination an% (as left t(e vessel o=nerKs %oc; or premises. ?nce create%, t(e relations(ip =ill not or%inaril terminate until t(e passen*er (as, after reac(in* (is %estination, safel ali*(te% from t(e carrierKs conveance or (a% a reasonale opportunit to leave t(e carrierKs premises. All persons =(o remain on t(e premises a reasonale time after leavin* t(e conveance are to e %eeme% passen*ers, an% =(at is a reasonale time or a reasonale %ela =it(in t(is rule is to e %etermine% from all t(e circumstances, an% inclu%es a reasonale time to see after (is a**a*e an% prepare for (is %eparture. (e carrierpassen*er relations(ip is not terminate% merel t(e fact t(at t(e person transporte% (as een carrie% to (is %estination if, for e@ample, suc( person remains in t(e carrierKs premises to claim (is a**a*e. B(en t(e acci%ent occurre%, t(e victim =as in t(e act of unloa%in* (is car*oes, =(ic( (e (a% ever ri*(t to %o, from petitionerKs vessel. ven if (e (a% alrea% %isemar;e% an (our earlier, (is presence in petitionerKs premises =as not =it(out cause. (e victim (a% to claim (is a**a*e =(ic( =as possile onl one (our after t(e vessel arrive% since it =as a%mitte%l stan%ar% proce%ure in t(e case of petitionerKs vessels t(at t(e unloa%in* operations s(all start onl after t(at time.
Ma$$ari +r. !s. CA Clearl, t(e pro@imate cause of t(e collision resultin* in t(e %eat( of a passen*er of t(e :eepne, =as t(e sole ne*li*ence of t(e %river of t(e passen*er :eepne, petitioner Alfre%o 4allari 5r., =(o rec;lessl operate% an% %rove (is :eepne in a lane =(ere overta;in* =as not allo=e% traffic rules. n%er Art. 218+ of t(e Civil Co%e, unless t(ere is proof to t(e contrar, it is presume% t(at a person %rivin* a motor ve(icle (as een ne*li*ent if at t(e time of t(e mis(ap (e =as violatin* a traffic re*ulation. n%er Art. 17++ of t(e Civil Co%e, a common carrier is oun% to carr t(e passen*ers safel as far as (uman care an% foresi*(t can provi%e usin* t(e utmost %ili*ence of ver cautious persons =it( %ue re*ar% for all t(e circumstances. 4oreover, un%er Art. 17+6 of t(e Civil Co%e, in case of %eat( or in:uries to passen*ers, a common carrier is presume% to (ave een at fault or to (ave acte% ne*li*entl, unless it proves t(at it oserve% e@traor%inar %ili*ence. 'urt(er, pursuant to Art. 17+" of t(e same Co%e, it is liale for t(e %eat( of or in:uries to passen*ers t(rou*( t(e ne*li*ence or =illful acts of t(e formerKs emploees. (is liailit of t(e common carrier %oes not cease upon proof t(at it e@ercise% all t(e %ili*ence of a *oo% fat(er of a famil in t(e selection of its emploees.
&a/asen !s. CA &t is a =ell ;no=n p(sical tact t(at cars ma s;i% on *reas or slipper roa%s, as in t(e instant case, =it(out fault on account of t(e manner of (an%lin* t(e car. S;i%%in* means partial or complete loss of control of t(e car un%er circumstances not necessaril implin* ne*li*ence. &t ma occur =it(out fault. n%er t(e particular circumstances of t(e instant case, t(e petitioner %river =(o s;i%%e% coul% not e re*ar%e% as ne*li*ent, t(e s;i%%in* ein* an unforeseen event, so t(at t(e petitioner (a% a vali% e@cuse for (is %eparture from (is re*ular course.
Cer!antes !s. CA
Since t(e $A a*ents are not priv to t(e sai% A*reement an% petitioner ;ne= t(at a =ritten reuest to t(e le*al counsel of $A =as necessar, (e cannot use =(at t(e $A a*ents %i% to (is a%vanta*e. (e sai% a*ents, acte% =it(out aut(orit =(en t(e confirme% t(e fli*(ts of t(e petitioner. n%er Article 1"8" of t(e Ne= Civil Co%e, t(e acts of an a*ent eon% t(e scope of (is aut(orit %o not in% t(e principal, unless t(e latter ratifies t(e same e@pressl or implie%l. 'urt(ermore, =(en t(e t(ir% person !(erein petitioner# ;no=s t(at t(e a*ent =as actin* eon% (is po=er or aut(orit, t(e principal cannot e (el% liale for t(e acts of t(e a*ent. &f t(e sai% t(ir% person is a=are of suc( limits of aut(orit, (e is to lame, an% is not entitle% to recover %ama*es from t(e a*ent, unless t(e latter un%ertoo; to secure t(e principalKs ratification.
Ca$a$as !s. CA &t is immaterial t(at t(e pro@imate cause of t(e collision et=een t(e :eepne an% t(e truc; =as t(e ne*li*ence of t(e truc; %river. (e %octrine of pro@imate cause is applicale onl in actions for uasi%elict, not in actions involvin* reac( of contract. (e %octrine is a %evice for imputin* liailit to a person =(ere t(ere is no relation et=een (im an% anot(er part. &n suc( a case, t(e oli*ation is create% la= itself. 9ut, =(ere t(ere is a pree@istin* contractual relation et=een t(e parties, it is t(e parties t(emselves =(o create t(e oli*ation, an% t(e function of t(e la= is merel to re*ulate t(e relation t(us create%. &nsofar as contracts of carria*e are concerne%, some aspects re*ulate% t(e Civil Co%e are t(ose respectin* t(e %ili*ence reuire% of common carriers =it( re*ar% to t(e safet of passen*ers as =ell as t(e presumption of ne*li*ence in cases of %eat( or in:ur to passen*ers. &n case of %eat( or in:uries to passen*ers, Art. 17+6 of t(e Civil Co%e provi%es t(at common carriers are presume% to (ave een at fault or to (ave acte% ne*li*entl unless t(e prove t(at t(e oserve% e@traor%inar %ili*ence as %efine% in Arts. 1733 an% 17++ of t(e Co%e. (is provision necessaril s(ifts to t(e common carrier t(e ur%en of proof. (e %river of :eepne %i% not carr Hsafel as far as (uman care an% foresi*(t coul% provi%e, usin* t(e utmost %ili*ence of ver cautious persons, =it( %ue re*ar% for all t(e circumstances as reuire% Art. 17++. 'irst, t(e :eepne =as not properl par;e%, its rear portion ein* e@pose% aout t=o meters from t(e roa% s(oul%ers of t(e (i*(=a, an% facin* t(e mi%%le of t(e (i*(=a in a %ia*onal an*le. (e petitionerKs %river too; in more passen*ers t(an t(e allo=e% seatin* capacit of t(e :eepne. (ese are violations of t(e an% ransportation an% raffic Co%e. (erefore, t(ere is no assumption of ris; t(e passen*er.
PestaKo !s. +ua/ang &n t(e case at ar, $estao, as a professional %river operatin* a pulic transport us, s(oul% (ave anticipate% t(at overta;in* at a :unction =as a perilous maneuver an% s(oul% t(us (ave e@ercise% e@treme caution. n%er Articles 218/ an% 2176 of t(e Civil Co%e, o=ners an% mana*ers are responsile for %ama*es cause% t(eir emploees. B(en an in:ur is cause% t(e ne*li*ence of a servant or an emploee, t(e master or emploer is presume% to e ne*li*ent eit(er in t(e selection or in t(e supervision of t(at emploee. (is presumption ma e overcome onl satisfactoril s(o=in* t(at t(e emploer e@ercise% t(e care an% t(e %ili*ence of a *oo% fat(er of a famil in t(e selection an% t(e supervision of its emploee.
#i$$aco !s. Mani$a Rai$road
B(ile a passen*er is entitle% to protection from personal violence t(e carrier or its a*ents or emploees, since t(e contract of transportation oli*ates t(e carrier to transport a passen*er safel to (is %estination, t(e responsiilit of t(e carrier e@ten%s onl to t(ose acts t(at t(e carrier coul% foresee or avoi% t(rou*( t(e e@ercise of t(e %e*ree of care an% %ili*ence reuire% of it. &n t(e present case, t(e act of t(e train *uar% of t(e 4anila ailroa% Compan in s(ootin* t(e passen*er !ecause of a personal *ru%*e nurture% a*ainst t(e latter since t(e 5apanese occupation# =as entirel unforseeale t(e 4anila ailroa% Co. (e latter (a% no means to ascertain or anticipate t(at t(e t=o =oul% meet, nor coul% it reasonal forsee ever personal rancor t(at mi*(t e@ist et=een eac( one of its man emploees an% an one of t(e t(ousan%s of eventual passen*ers ri%in* in its trains. (e s(ootin* in uestion =as t(erefore caso fortuito =it(in t(e %efinition of Art. 11/+ of t(e ol% Civil Co%e !=(ic( is t(e la= applicale#, ein* ot( unforeseeale an% inevitale un%er t(e *iven circumstancesE an% pursuant to estalis(e% %octrine, t(e resultin* reac( of t(e companKs contract of safe carria*e =it( t(e %ecease% =as e@cuse% t(ere.
Maranan !s. Pere (e asis of t(e common carrierKs liailit un%er NCC for assaults on passen*ers committe% its %rivers rests eit(er on !1# t(e %octrine of respon%eat superior or !2# t(e principle t(at it is t(e carrierKs implie% %ut to transport t(e passen*er safel. n%er t(e first, =(ic( is t(e minorit vie=, t(e carrier is liale onl =(en t(e act of t(e emploee is =it(in t(e scope of (is aut(orit an% %ut. &t is not sufficient t(at t(e act e =it(in t(e course of emploment onl. n%er t(e secon% vie=, up(el% t(e ma:orit an% also t(e later cases, it is enou*( t(at t(e assault (appens =it(in t(e course of t(e emploeeKs %ut. &t is no %efense for t(e carrier t(at t(e act =as %one in e@cess of aut(orit or in %isoe%ience of t(e carrierKs or%ers. (e carrierKs liailit (ere is asolute in t(e sense t(at it practicall secures t(e passen*ers from assaults committe% its o=n emploees. Art. 17+", evi%entl follo=s t(e rule ase% on t(e secon% vie=. Accor%in*l, it is t(e carrierKs strict oli*ation to select its %rivers an% similar emploees =it( %ue re*ar% not onl to t(eir tec(nical competence an% p(sical ailit, ut also, no less important, to t(eir total personalit, inclu%in* t(eir patterns of e(avior, moral fiers, an% social attitu%e.
PNR !s. CA B(en a train oar%e% t(e %ecease% passen*er =as so overcro=%e% t(at (e an% man ot(er passen*ers (a% no c(oice ut to sit on t(e open platforms et=een t(e coac(es of t(e train, t(e common carrier is ne*li*ent. i;e=ise =(en t(e train %i% not even slo= %o=n =(en it approac(e% t(e &am 9ri%*e =(ic( =as un%er repair at t(e time, neit(er %i% t(e train stop, %espite t(e alarm raise% ot(er passen*ers t(at a person (a% fallen off t(e train at lam 9ri%*e, t(ere =as ne*li*ence. (e petitioner (as t(e oli*ation to transport its passen*ers to t(eir %estinations an% to oserve e@traor%inar %ili*ence in %oin* so. Deat( or an in:ur suffere% an of its passen*ers *ives rise to t(e presumption t(at it =as ne*li*ent in t(e performance of its oli*ation un%er t(e contract of carria*e. 9ut =(ile petitioner faile% to e@ercise e@traor%inar %ili*ence as reuire% la=, it appears t(at t(e %ecease% =as c(ar*eale =it( contriutor ne*li*ence. Since (e opte% to sit on t(e open platform et=een t(e coac(es of t(e train, (e s(oul% (ave (el% ti*(tl an% tenaciousl on t(e upri*(t metal ar foun% at t(e si%e of sai% platform to avoi% fallin* off from t(e spee%in* train.
Isaac !s. A.(. Aen Trans. Co.
&f t(e carrierJs emploee is confronte% =it( a su%%en emer*enc, (e is not (el% to t(e same %e*ree of care (e =oul% ot(er=ise, e reuire% in t(e asence of suc( emer*enc. 9 placin* (is left arm on t(e =in%o=, petitioner is *uilt of contriutor ne*li*ence. &t cannot (o=ever relieve t(e carrier ut can onl re%uce its liailit !A. 1762#. &t is a prevailin* rule t(at it is ne*li*ence per se for passen*ers on a railroa% to protru%e an part of (is o% an% t(at no recover can e (a% for an in:ur.
&ache$or E-:ress Inc !s. CA (e runnin* amuc; of t(e passen*er =as t(e pro@imate cause of t(e inci%ent as it tri**ere% off a commotion an% panic amon* t(e passen*ers suc( t(at t(e passen*ers starte% runnin* to t(e sole e@it s(ovin* eac( ot(er resultin* in t(e fallin* off t(e us passen*ers 9eter an% autraut causin* t(em fatal in:uries. (e su%%en act of t(e passen*er =(o stae% anot(er passen*er in t(e us is =it(in t(e conte@t of force ma:eure. 0o=ever, in or%er t(at a common carrier ma e asolve% from liailit in case of force ma:eure, it is not enou*( t(at t(e acci%ent =as cause% force ma:eure. (e common carrier must still prove t(at it =as not ne*li*ent in causin* t(e in:uries resultin* from suc( acci%ent. &n t(is case, 9ac(elor =as ne*li*ent. Consi%erin* t(e factual fin%in*s of t(e Court of Appealst(e us %river %i% not imme%iatel stop t(e us at t(e (ei*(t of t(e commotionE t(e us =as spee%in* from a full stopE t(e victims fell from t(e us %oor =(en it =as opene% or *ave =a =(ile t(e us =as still runnin*E t(e con%uctor panic;e% an% le= (is =(istle after people (a% alrea% fallen off t(e usE an% t(e us =as not properl euippe% =it( %oors in accor%ance =it( la=.
Cariaga !s. (T& Co (e income =(ic( %ecease% coul% earn if (e s(oul% finis( t(e me%ical course an% pass t(e correspon%in* oar% e@aminations must e %eeme% to e =it(in t(e same cate*or provi%e% for Art. 22/1 of t(e Civil Co%e, =(ic( are t(ose t(at are t(e natural an% proale conseuences of t(e reac( an% =(ic( t(e parties (a% foreseen or coul% (ave reasonal foreseen at t(e time t(e oli*ation =as constitute%. 9 coul% not e (el% liale to pa moral %ama*es un%er Article 222/ of t(e Civil Co%e on account of reac( of its contract of carria*e ecause it %i% not act frau%ulentl or in a% fait(. 9 (a% e@ercise% %ue %ili*ence in t(e selection an% supervision of its emploees li;e t(e %rivers of its uses in connection =it( t(e %isc(ar*e of t(eir %uties an% so it must e consi%ere% an oli*or in *oo% fait(.
,i$$a Re/ Transit Inc. !s. CA ife e@pectanc is, not onl relevant, ut, also, an important element in fi@in* t(e amount recoverale private respon%ents (erein. Alt(ou*( it is not t(e sole element %eterminative of sai% amount, no co*ent reason (as een *iven to =arrant its %isre*ar% an% t(e a%option, in t(e case at ar, of a purel aritrar stan%ar%, suc( as a fourear rule. B(en t(e liailit of common carrier (a% een fi@e% at a minimal rate of onl of $2,18.// a ear, =(ic( is t(e annual salar of %ecease% at t(e time of (is %eat(, as a oun* trainin* assistant an% =(en t(e %ecease%Js potentialit an% capacit to increase (is future income =as not consi%ere% sai% liailit ma e enforce% upon finalit of t(e %ecision.
Pan Aerican Jor$d Air)a/s !s. IAC 9 refusin* to accommo%ate plaintiff in sai% fli*(t, %efen%ant (a% =illfull an% ;no=in*l violate% t(e contract of carria*e an% faile% to rin* t(e plaintiff to (er place of %estination un%er its contract =it( plaintiff. 9a% fait( =as also present. Self enric(ment or fraternal interest an% not personal ill =ill ma (ave een t(e motive of %efen%ant, ut it is malice nevert(eless. (e fact t(at plaintiff =as or%ere% out un%er some prete@t in or%er to accommo%ate a =(ite man in an airline o=ne% an American firm =it( a reputation for umpin* off non Caucasian to accommo%ate =(ites is ver re*rettale. Defen%ant (avin* reac(e% its contract =it( plaintiff in a% fait(, it is not error to (ave a=ar%e% e@emplar %ama*es. (e rationale e(in% e@emplar or corrective %ama*es is, as t(e name implies, to provi%e an e@ample or correction for pulic *oo% . &n vie= of it nature, it s(oul% e impose% in suc( amount as to sufficientl an% effectivel %eter similar reac( of contract in t(e future %efen%ant an% ot(er airlines. An a=ar% of attorneKs fees is also in or%er, (avin* foun% a% fait( on t(e part of %efen%ant.
+o7erano !s. MRR &n case of p(sical in:uries, moral %ama*es are recoverale onl t(e part in:ure% an% not (is ne@t of ;in, unless t(ere is e@press statutor provision to t(e contrar. &n t(is case it =as 5uana Soerano, not (er (usan% 5ose, =(o sustaine% t(e o%il in:uries. Attornes fees ma onl e a=ar%e% =(en t(e %efen%antKs act or omission (as compelle% t(e plaintiff to liti*ate =it( t(ir% persons or incur e@penses to protect (is interest, or =(en t(e %efen%ant acte% in *ross an% evi%ent a% fait( in refusin* to satisf t(e plaintiffKs plainl vali%, :ust an% %eman%ale claim. &t =ill e oserve% t(at t(e %efen%ant companies offere% to settle t(e case offerin* to t(e Soeranos t(e a%%itional sum of $+,///. (e Soeranos, (o=ever, re:ecte% t(e offer an% procee%e% to court to recover %ama*es in t(e total sum of $76,7+7.76.
Marchan !s. Mendoa &t is ar*ue% t(at t(is Court is =it(out :uris%iction to a%:u%icate t(e e@emplar %ama*es since t(ere =as no alle*ation nor praer, nor proof, nor counterclaim of error for t(e same t(e respon%ents. &t is to e oserve% (o=ever, t(at in t(e complaint, plaintiffs prae% for suc( ot(er an% furt(er relief as t(is Court ma %eem :ust an% euitale. No=, since t(e o% of t(e complaint sou*(t to recover %ama*es a*ainst t(e %efen%antcarrier =(erein plaintiffs prae% for in%emnification for t(e %ama*es t(e suffere% as a result of t(e ne*li*ence of t(e %river =(o is appellantKs emploee an% since e@emplar %ama*es is intimatel connecte% =it( *eneral %ama*es, plaintiffs ma not e e@pecte% to sin*le out e@press term t(e ;in% of %ama*es t(e are trin* to recover a*ainst t(e %efen%antKs carrier. Suffice it to state t(at =(en plaintiffs prae% in t(eir complaint for suc( ot(er relief an% reme%ies t(at ma e availe% of un%er t(e premises, in effect, t(erefore, t(e court is calle% upon t(e e@ercise an% use its %iscretion =(et(er t(e imposition of punitive or e@emplar %ama*es even t(ou*( not e@pressl prae% or plea%e% in t(e plaintiffsK complaint. @emplar %ama*es ma e impose% =a of e@ample or correction onl in a%%ition, amon* ot(ers, to compensator %ama*es, ut t(at t(e cannot e recovere% as a matter of ri*(t, t(eir %etermination %epen%in* upon t(e %iscretion of t(e court. &f t(e amount of e@emplar %ama*es nee% not e prove%, it nee% not also e alle*e%, an% t(e reason is ovious ecause it is merel inci%ental or %epen%ent upon =(at t(e court ma a=ar% as compensator %ama*es.
De Ca$iston !s. Court of A::ea$s (e %eletion of t(e $1/,///.// a=ar%e% for loss of pension is un:ustifie%. n%er Article 22/6 of t(e Civil Co%eL (e amount of %ama*es for %eat( cause% a crime or uasi%elict s(all e at least t(ree t(ousan% pesos, even t(ou*( t(ere ma (ave een miti*atin* circumstances. &n a%%itionL !1# (e %efen%ant s(all e liale for t(e loss of t(e earnin* capacit of t(e %ecease%, an% t(e in%emnit s(all e pai% to t(e (eirs of t(e latter. . (e pension of t(e %ece%ent ein* a sure income t(at =as cut s(ort (er %eat( for =(ic( Dalmacio =as responsile, t(e survivin* (eir of t(e former is entitle% to t(e a=ar% of $ 1/,///.// =(ic( is :ust euivalent to t(e pension t(e %ece%ent =oul% (ave receive% for one ear if s(e %i% not %ie. ?n t(e ot(er (an%, t(e $+,///.// pai% to t(e (erein petitioner t(e insurer of t(e passen*er us =(ic( fi*ure% in t(e acci%ent ma e %eeme% to (ave come from t(e us o=ner =(o procure% t(e insurance. Since t(e civil liailit !e@%elicto# of t(e latter for t(e %eat( cause% (is %river is susi%iar an%, at ottom, arises from t(e same culpa, t(e insurance procee%s s(oul% e cre%ite% in favor of t(e errant %river.
Phi$i::ine Air$ines !s. CA 1=' +CRA 11> $etitioner relies on t(e principle of la= *enerall reco*nize% an% applie% t(e courts in t(e nite% States t(at t(e controllin* element in %eterminin* loss of earnin*s arisin* from %eat( is, as estalis(e% aut(orities, t(e life e@pectanc of t(e %ecease% or of t(e eneficiar, =(ic(ever is s(orter. 0o=ever, resort to forei*n :urispru%ence =oul% e proper onl if no la= or :urispru%ence is availale locall to settle a controvers. ven in t(e asence of local statute an% case la=, forei*n :urispru%ence is onl persuasive. 'or t(e settlement of t(e issue at (an%, t(ere are enou*( applicale local la=s an% :urispru%ence. n%er Article 176 an% Article 22/6!1# of t(e Civil Co%e, t(e a=ar% of %ama*es for %eat( is compute% on t(e asis of t(e life e@pectanc of t(e %ecease%, not of (is eneficiar.
Cachero !s. Mani$a ?e$$o) Ta-i Ca7 B(ile un%er t(e la=, emploers are ma%e responsile for t(e %ama*es cause% t(eir emploees actin* =it(in t(e scope of t(eir assi*ne% tas;, plaintiff, in t(e present case, %oes not maintain (is action a*ainst all t(e persons =(o mi*(t e liale for t(e %ama*es cause% ut on an alle*e% reac( of contract of carria*e an% a*ainst t(e %efen%ant emploer alone. 0o=ever, t(e %efen%ant ta@ica compan (as not committe% an criminal offense resultin* in p(sical in:uries a*ainst t(e plaintiff. (e one t(at committe% t(e offense a*ainst plaintiff is t(e %river of %efen%antKs ta@ica ut (e =as not ma%e part %efen%ant to t(e case. (erefore, plaintiff is not entitle% to compensation for moral %ama*es as (is case %oes not come =it(in t(e e@ception of para*rap( 1 of Article 221" of t(e Civil Co%e. (e present case %oes not come un%er an of t(e e@ceptions enumerate% in Article 22/8 of t(e Civil Co%e, speciall of para*rap( 2 t(ereof, ecause %efen%antKs failure to meet its responsiilit =as not t(e cause t(at compelle% t(e plaintiff to liti*ate or to incur e@penses to protect (is interests. (e present action =as institute% ecause plaintiff %eman%e% an e@oritant amount for moral %ama*es an% naturall t(e %efen%ant %i% not an% coul% not iel% to suc( %eman%. (is is neit(er a case t(at comes un%er para*rap( 11 of sai% Article ecause t(e o=er Court %i% not %eem it :ust an% euitale to a=ar% an amount for attorneKs fees, on =(ic( point t(is Court a*rees.
Fores !s. Miranda (e e@ception to t(e asic rule of %ama*es no= un%er consi%eration is a mis(ap resultin* in t(e %eat( of a passen*er, in =(ic( case Article 176 ma;es t(e common carrier e@pressl su:ect to t(e rule of Art. 22/6, t(at entitles t(e spouse, %escen%ants an% ascen%ants of t(e %ecease% passen*er to %eman% moral %ama*es for mental an*uis( reason of t(e %eat( of t(e %ecease%. 9ut t(e e@ceptional rule of Art. 176 ma;es it all t(e more evi%ent t(at =(ere t(e in:ure% passen*er %oes not %ie, moral %ama*es are not recoverale unless it is prove% t(at t(e carrier =as *uilt of malice or a% fait(. Be t(in; it is clear t(at t(e mere carelessness of t(e carrierKs %river %oes not per se constitute or :ustif an inference of malice or a% fait( on t(e part of t(e carrierE an% in t(e case at ar t(ere is no ot(er evi%ence of suc( malice to support t(e a=ar% of moral %ama*es t(e Court of Appeals. o a=ar% moral %ama*es for reac( of contract, t(erefore, =it(out proof of a% fait( or malice on t(e part of t(e %efen%ant, as reuire% Art. 222/, =oul% e to violate t(e clear provisions of t(e la=, an% constitute un=arrante% :u%icial le*islation.
(o:e !s. Pan Aerican As a pro@imate result of %efen%antKs reac( in a% fait( of its contracts =it( plaintiffs, t(e latter suffere% social (umiliation, =oun%e% feelin*s, serious an@iet an% mental an*uis(. 'or plaintiffs =ere travellin* =it( first class tic;ets issue% %efen%ant an% et t(e =ere *iven onl t(e tourist class. At stop overs, t(e =ere e@pecte% to e amon* t(e firstclass passen*ers t(ose a=aitin* to =elcome t(em, onl to e foun% amon* t(e tourist passen*ers. &t ma not e (umiliatin* to travel as tourist passen*ersE it is (umiliatin* to e compelle% to travel as suc(, contrar to =(at is ri*(tfull to e e@pecte% from t(e contractual un%erta;in*. Senator opez =as t(en Senate $resi%ent $ro empore. &nternational carriers li;e %efen%ant ;no= t(e presti*e of suc( an office. An% (e =as former
Ortigas r. !s. (ufthansa &t is ?ur consi%ere% vie= t(at =(en it comes to contracts of common carria*e, inattention an% lac; of care on t(e part of t(e carrier resultin* in t(e failure of t(e passen*er to e accommo%ate% in t(e class contracte% for amounts to a% fait( or frau% =(ic( entitles t(e passen*er to t(e a=ar% of moral %ama*es in accor%ance =it( Article 222/ of t(e Civil Co%e. 9ut in t(e instant case, t(e reac( appears to e of *raver nature, since t(e preference *iven to t(e 9el*ian passen*er over plaintiff =as %one =illfull an% in =anton %isre*ar% of plaintiffKs ri*(ts an% (is %i*nit as a (uman ein* an% as a 'ilipino, =(o ma not e %iscriminate% a*ainst =it( impunit. B(at =orsene% t(e situation of =as t(at uft(ansa succee%e% in ;eepin* ?rti*as as its passen*er assurin* (im t(at (e =oul% e *iven first class accommo%ation at t(e ne@t stations, t(e proper arran*ements t(erefor (avin* een ma%e alrea%, =(en in trut( suc( =as not t(e case.
A passen*er contracts for first class accommo%ations for man reasons peculiar to (imself an% pas a (i*(er price t(erefor, an% it is certainl not for t(e airplane to sa later, after it %eprives (im of (is space in or%er to favor anot(er passen*er, t(at econom class is an=a :ust as *oo% as first class. Be (ave uniforml up(el% t(e ri*(t of a passen*er to %ama*es in all cases =(erein, after (avin* contracte% an% pai% for first class accommo%ations %ul confirme% an% vali%ate%, (e is transferre% over (is o:ection to econom, class, =(ic( (e (as to ta;e in or%er to e ale to arrive at (is %estination on (is sc(e%ule% time.
Phi$i::ine Ra77it &us (ines !s. Esguerra 4oral %ama*es are not recoverale in actions for %ama*es pre%icate% on a reac( of t(e contract of transportation, as in t(e instant case, in vie= of t(e provisions of Articles 221" an% 222/ of t(e Ne= Civil Co%e. (e e@ceptions are !1# =(ere t(e mis(ap results in t(e %eat( of a passen*er, an% !2# =(ere it is prove% t(at t(e carrier =as *uilt of frau% or a% fait(, even if %eat( %oes not result. (e Court of Appeals foun% t(at t(e t=o ve(icles si%es=ipe% eac( ot(er at t(e mi%%le of t(e roa%. &n ot(er =or%s. ot( ve(icles =ere in t(eir respective lanes an% t(at t(e %i% not inva%e t(e lane of t(e ot(er. &t cannot e sai% t(erefore t(at t(ere =as frau% or a% fait( on t(e part of t(e carrierKs %river. (is ein* t(e case, no moral %ama*es are recoverale.
Trans Jor$d Air$ines !s. CA $etitioner sacrifice% t(e comfort of its first class passen*ers inclu%in* private respon%ent
Aro!it !s. CA (e *ross ne*li*ence committe% private respon%ent!Nort(=est Airlines# in t(e issuance of t(e tic;ets t(e erroneous entr of t(e %ate of %eparture an% =it(out c(an*in* or correctin* t(e error =(en t(e tic;ets =ere presente% for reconfirmation an% t(e manner =(ic( petitioners =ere ru%el informe% t(at t(e =ere umpe% off are clear in%icia of suc( malice an% a% fait( an% estalis( t(at private respon%ent committe% a reac( of contract =(ic( entitles petitioners to moral %ama*es. (e %eletion of t(e nominal %ama*es t(e appellate court is =ellta;en since t(ere is an a=ar% of actual %ama*es. Nominal %ama*es cannot coe@ist =it( actual or compensator %ama*es.
Phi$i::ine Air$ines !s. CA 1>< +CRA 3;1
(ere =as *ross ne*li*ence $A for allo=in* Capt. 9ustamante to fl on t(e t(at fateful %a of t(e acci%ent, even if (e =as sic;, (avin* tumor on (is nose. No one =ill certif t(e fitness to fl a plane of one sufferin* from t(e %isease. ?ne mont( prior to t(e cras(lan%in*, =(en t(e pilot =as preparin* to lan% in Daet, private respon%ent =arne% (im t(at t(e =ere not in t(e vicinit of Daet ut aove t(e to=n of i*ao. (e %izziness, (ea%ac(es an% *eneral %eilit of private respon%ent =ere aftereffects of t(e cras( lan%in*. An% t(erefore t(ere is causal connection et=een t(e acci%ent an% sai% aftereffects. (e ne*li*ence of $A is clearl a uasi%elict an% t(erefore Art. 221"!2# is applicale, :ustifin* t(e recover of moral %ama*es. ven from t(e stan%point of t(e petitioner t(at t(ere is an emploeeemploer relations(ip et=een it an% private respon%ent arisin* from t(e contract of emploment, private respon%ent is still entitle% to moral %ama*es in vie= of t(e fin%in* of a% fait( or malice, applin* t(e provisions of Article 222/.
Prudenciado !s. A$$iance Trans:ort Dra. $ru%encia%o suffere% a rain concussion =(ic( alt(ou*( mil% can a%mitte%l pro%uce t(e effects complaine% of (er an% t(at t(ese smptoms can %evelop after several ears an% can lea% to some, serious (an%icaps or pre%ispose t(e patient to ot(er sic;ness. 9ein* a %octor profession, (er fears can e more real an% intense t(an an or%inar person. ?t(er=ise state%, s(e is un%enial a proper recipient of moral %ama*es =(ic( are proportionate to (er sufferin*. As to e@emplar %ama*es, Article 2231 of t(e Civil Co%e provi%esL H&n uasi%elicts, e@emplar %ama*es ma e *rante% if t(e %efen%ant acte% =it( *rave ne*li*ence.I (e rationale e(in% e@emplar or corrective %ama*es is, as t(e name implies, to provi%e an e@ample or correction for t(e pulic *oo%. espon%ent %river =as runnin* at (i*( spee% after turnin* to t(e ri*(t alon* aft Ave. comin* from Aala 9oulevar%, consi%erin* t(at t(e traffic =as clear. 'ailin* to notice petitionerKs car, (e faile% to appl (is ra;es an% %i% not even s=erve to t(e ri*(t to avoi% t(e collision. 4uc( more, it =as rainin* t(at time an% t(e roa%s are slipper. (e freuent inci%ence of acci%ents of t(is nature cause% ta@i %rivers in%ee% %eman%s corrective measures.
I. CONCEPT OF COMMON CARRIER DE #*LMAN !s. CO*RT OF APPEA(+ FactsB espon%ent rnesto Cen%aa is a :un; %ealer =(o =as en*a*e% in uin* up use% ottles an% scrap metal in $an*asinan. $an*asinan. pon *at(erin* sufficient sufficient uantities uantities of suc( scrap material, respon%ent respon%ent =oul% rin* suc( material to 4anila for resale. 0e utilize% t=o si@=(eeler truc;s =(ic( (e o=ne% for (aulin* t(e material to 4anila. ?n t(e return trip to $an*asinan, respon%ent =oul% loa% (is ve(icles =it( car*o =(ic( various merc(ants =ante% %elivere% to %ifferent estalis(ments in $an*asinan. 'or t(at service, respon%ent c(ar*e% frei*(t rates =(ic( =ere commonl lo=er t(an re*ular commercial rates. $etitio $etitioner ner $e%ro $e%ro %e Guzman Guzman a merc(a merc(ant nt an% aut(ori aut(orize% ze% %ealer %ealer of Genera Generall 4il; 4il; Compan Compan !$(ilippines#, &nc. in r%aneta, $an*asinan, contracte% =it( respon%ent for t(e (aulin* of 7+/ cartons of iert fille% mil; from its =are(ouse in 4a;ati to petitionerKs estalis(ment in r%aneta. 1+/ cartons =ere loa%e% on a truc; %riven respon%ent, =(ile 6// cartons =ere place% on oar% t(e ot(er truc; =(ic( =as %riven 4anuel stra%a, respon%entKs %river an% emploee. ?nl 1+/ o@es of iert fille% mil; =ere %elivere% %elivere% to petitioner petitioner.. (e ot(er 6// o@es never reac(e% petitioner, petitioner, since t(e truc; =(ic( carrie% t(ese o@es =as (i:ac;e% some=(ere alon* t(e 4acArt(ur 0i*(=a in $aniui, arlac, arme% men =(o too; =it( t(em t(e truc;, its %river, (is (elper an% t(e car*o. $etitioner $etitioner commence% action a*ainst a*ainst private private respon%ent respon%ent %eman%in* pament of $22,1+/.//, $22,1+/.//, t(e claime% value of t(e lost merc(an%ise, plus %ama*es an% attorneKs fees. $etitioner ar*ue% t(at private respon%ent, respon%ent, ein* a common carrier, carrier, an% (avin* faile% to e@ercise e@ercise t(e e@traor%inar e@traor%inar %ili*ence %ili*ence reuire% of (im t(e la=, s(oul% e (el% liale for t(e value of t(e un%elivere% *oo%s. $rivate respon%ent %enie% t(at (e =as a common carrier an% ar*ue% t(at (e coul% not e (el% responsile for t(e value of t(e lost *oo%s, suc( loss (avin* een %ue to force ma:eure. (e C rule% t(at private respon%ent =as a common carrier. CA reverse% t(e %ecision an% (el% t(at respon%ent (a% een en*a*e% in transportin* return loa%s of frei*(t as a casual occupationI, a si%eline to (is scrap iron usiness.
IssueB 1. B(et(er or not respon%ent is a common carrier. 2. B(et(er or not respon%ent is liale.
Ge$dB 1. )es. Article 1732 ma;es no %istinction et=een one =(ose principal usiness activit is t(e carrin* of persons or *oo%s or ot(, an% one =(o %oes suc( carrin* onl as an ancillar activit !in local &%iom as a si%eline#. Article 1732 also carefull avoi%s ma;in* an %istinction et=een a person or enterprise offerin* transportation service on a re*ular or sc(e%ule% asis an% one offerin* suc( service on an occasional, episo%ic or unsc(e%ule% asis. Neit(er %oes Article 1732 %istin*uis( et=een a carrier offerin* its services to t(e *eneral pulic, i.e., t(e *eneral communit or population, an% one =(o offers services or solicits usiness onl from a narro= se*ment of t(e *eneral population. (e Court of Appeals referre% to t(e fact t(at private respon%ent (el% no certificate of pulic convenience. convenience. A certificate certificate of pulic pulic convenience convenience is not a reuisite reuisite for t(e incurrin* of liailit liailit.. (at liailit liailit
arises t(e moment a person or firm acts as a common carrier, =it(out re*ar% to =(et(er or not suc( carrier (as also complie% =it( t(e reuirements of t(e applicale re*ulator statute an% implementin* re*ulations an% (as een *rante% a certificate of pulic convenience or ot(er franc(ise. o e@empt private respon%ent from t(e liailities of a common carrier ecause (e (as not secure% t(e necessar certificate of pulic convenience, =oul% e offensive to soun% pulic policE t(at =oul% e to re=ar% private respon%ent precisel for failin* to compl =it( applicale statutor reuirements. 2. No. Article Article 173 173 estal estalis( is(es es t(e *enera *enerall rule rule t(at t(at common common carrie carriers rs are responsi responsile le for t(e loss, loss, %estruction %estruction or %eterioratio %eteriorationn of t(e *oo%s =(ic( t(e carr, carr, unless t(e same is %ue to an of t(e follo=in* follo=in* causes onlL !1# 'loo%, storm, eart(ua;e, li*(tnin* or ot(er natural %isaster or calamitE !2# Act of t(e pulic enem in =ar, =(et(er international or civilE !3# Act or omission of t(e s(ipper or o=ner of t(e *oo%sE !# (e c(aracterof t(e *oo%s or %efects in t(e pac;in* orin t(e containersE an% !+# ?r%er or act of competent pulic aut(orit. Article 173+ also provi%es as follo=sL &n all cases ot(er t(an t(ose mentione% in numers 1, 2, 3, an% + of t(e prece%in* article, if t(e *oo%s are lost, %estroe% or %eteriorate%, common carriers are presume% to (ave een at fault or to (ave acte% ne*li*entl, unless t(e prove t(at t(e oserve% e@traor%inar %ili*ence as reuire% in Article 1733. (e (i:ac;in* of t(e carrierKs truc; %oes not fall =it(in an of t(e five cate*ories of e@emptin* causes liste% in Article 173. &t =oul% follo=, t(erefore, t(at t(e (i:ac;in* of t(e carrierKs ve(icle must e %ealt =it( un%er t(e provisions of Article 173+, in ot(er =or%s, t(at t(e private respon%ent as common carrier is presume% to (ave een at fault or to (ave acte% ne*li*entl. (is presumption, (o=ever, ma e overt(ro=n proof of e@traor%inar %ili*ence on t(e part of private respon%ent. $etitioner ar*ues t(at in t(e circumstances of t(is case, private respon%ent respon%ent s(oul% (ave (ire% a securit securit *uar% presumal to ri%e =it( t(e truc; carrin* t(e 6// cartons of iert fille% mil;. Be %o not elieve, (o=ever, t(at in t(e instant case, t(e stan%ar% of e@traor%inar %ili*ence reuire% private respon%ent to retain a securit *uar% to ri%e =it( t(e truc; an% to en*a*e ri*an%s in a fireli*(t at t(e ris; of (is o=n life an% t(e lives of t(e %river an% (is (elper. Article 17+ provi%es in relevant partL An of t(e follo=in* or similar stipulations s(all e consi%ere% unreasonale, un:ust an% contrar to pulic policL !6# t(at t(e common carrierKs liailit for acts committe% t(ieves, or of roers =(o %o not act =it( *rave or irresistile t(reat, violence or force, is %ispense% =it( or %iminis(e%. &n t(e instant case, arme% men (el% up t(e secon% truc; o=ne% private respon%ent =(ic( carrie% petitionerKs car*o. Accuse% acte% =it( *rave, if not irresistile, t(reat, violence or force. &n t(ese circumstances, =e (ol% t(at t(e occurrence of t(e loss must reasonal e re*ar%e% as uite eon% t(e control of t(e common carrier an% properl re*ar%e% as a fortuitous event. &t is necessar to recall t(at even common carriers are not ma%e asolute insurers a*ainst all ris;s of travel an% of transport of *oo%s, an% are not (el% liale for acts or events =(ic( cannot e foreseen or are inevitale, inevitale, provi%e% t(at t(e s(all (ave complie% =it( t(e ri*orous stan%ar% of e@traor%inar %ili*ence.
P(ANTER+ PROD*CT+ INC. !s. CO*RT OF APPEA(+
FactsB $$& purc(ase% from 4itsuis(i metric tons of rea fertilizer =(ic( t(e latter s(ippe% aoar% t(e car*o vessel o=ne% from S to a nion. $rior to its voa*e, a time c(arterpart on t(e vessel =as entere% into et=een 4itsuis(i as s(ipperFc(arterer an% as s(ipo=ner, in o;o, o;o, 5apan. 9efore loa%in* t(e fertilizer aoar% t(e vessel, t(e =ere all presumal inspecte% t(e c(artererKs representative an% foun% fit to ta;e a loa% of urea. After t(e rea fertilizer =as loa%e% in ul; steve%ores steve%ores (ire% an% un%er t(e supervision of t(e s(ipper, t(e steel (atc(es =ere close% =it( (eav iron li%s, covere% =it( t(ree laers of tarpaulin, t(en tie% =it( steel on%s. (e (atc(es (atc(es remaine% remaine% close% an% ti*(tl ti*(tl seale% t(rou*(out t(rou*(out t(e entire voa*e. A private marine an% car*o surveor, Car*o Superinten%ents Compan &nc. !CSC&#, =as (ire% $$& to %etermine t(e outturn of t(e car*o s(ippe%. (e surve report sumitte% reveale% a s(orta*e in t(e car*o an% t(at a portion of t(e rea fertilizer appro@imatin* =as contaminate% =it( %irt. $$& sent a claim letter to Soriamont Steams(ip A*encies A*encies !SSA#, t(e resi%ent resi%ent a*ent of t(e carrier, carrier, , for t(e cost of t(e s(orta*e in t(e an% t(e %iminution %iminution in value of t(at portion contaminate% contaminate% =it( %irt. SSA e@plaine% t(at t(e %i% not respon% to t(e consi*neeKs claim ecause it =as not a formal claim, an% t(at t(e (a% not(in* to %o =it( t(e %isc(ar*e of t(e s(ipment. $$& file% an action for %ama*es. (e %efen%ant carrier ar*ue% t(at t(e strict pulic polic *overnin* common carriers %oes not appl to t(em ecause t(e (ave ecome private carriers reason of t(e provisions provisions of t(e c(arterpart c(arterpart.. C rule% in favor of plaintiff, plaintiff, statin* t(at Hcommon Hcommon carriers carriers are presume% presume% ne*li*ent, all t(at a s(ipper (as to %o in a suit to recover for loss or %ama*e is to s(o= receipt t(e carrier of t(e *oo%s an% to %eliver it of less t(an =(at it receive%. After t(at, t(e ur%en of provin* t(at t(e loss or %ama*e =as %ue to an of t(e causes =(ic( e@empt (im from liailit is s(ifte% to t(e carrier, common or private (e ma e. ven if t(e provisions of t(e c(arterpart are %eeme% vali%, an% t(e %efen%ants consi%ere% private carriers, it =as still incument upon t(em to prove t(at t(e s(orta*e or contamination sustaine% t(e car*o is attriutale to t(e fault or ne*li*ence on t(e part of t(e s(ipper or consi*nee in t(e loa%in*, sto=in*, trimmin* an% %isc(ar*e of t(e car*o. (is t(e faile% to %o.I CA reverse% t(e %ecision, relin* on t(e 1"68 case of 0ome &nsurance Co. v. American Steams(ip A*encies, &nc., it rule% t(at t(e car*o vessel 4F< Sun $lum o=ne% private respon%ent =as a private carrier an% not a common carrier reason of t(e time c(artererpart. Accor%in*l, t(e Civil Co%e provisions on common carriers =(ic( set fort( a presumption of ne*li*ence %o not fin% application in t(e case at ar.
IssueB 1# B(et(er a common carrier ecomes a private carrier reason of a c(arterpart. 2# B(et(er t(e s(ipo=ner =as ale to prove t(at (e (a% e@ercise% t(at %e*ree of %ili*ence reuire% of (im un%er t(e la=.
Ge$dB 1.# Not necessaril. &t is not %ispute% t(at respon%ent carrier, in t(e or%inar course of usiness, operates as a common carrier, transportin* *oo%s in%iscriminatel for all persons. B(en petitioner c(artere% t(e vessel 4F< Sun $lum, t(e s(ip captain, its officers an% compliment =ere un%er t(e emplo of t(e s(ipo=ner an% t(erefore continue% to e un%er its %irect supervision an% control. 0ar%l t(en can t(e c(arterer e c(ar*e%, a stran*er to t(e cre= an% to t(e s(ip, =it( t(e %ut of carin* for (is car*o =(en t(e c(arterer %i% not (ave an control of t(e means in %oin* so. (is is evi%ent in t(e present case consi%erin* t(at t(e steerin* of t(e s(ip, t(e mannin* of t(e %ec;s, t(e %etermination of t(e course of t(e voa*e an% ot(er tec(nical inci%ents of maritime navi*ation =ere all consi*ne% to t(e officers an% cre= =(o =ere screene%, c(osen an% (ire% t(e s(ipo=ner. &t is t(erefore imperative t(at a pulic carrier s(all remain as suc(, not=it(stan%in* t(e c(arter of t(e =(ole or portion of a vessel one or more persons, provi%e% t(e c(arter is limite% to t(e s(ip onl, as in t(e case of a timec(arter or voa*ec(arter. &t is onl =(en t(e c(arter inclu%es ot( t(e vessel an% its cre=, t(at a common carrier ecomes private, at least insofar as t(e particular voa*e coverin* t(e c(arterpart is concerne%. &n%uital, a s(ipo=ner in a time or voa*e c(arter retains possession an% control of t(e s(ip, alt(ou*( (er (ol%s ma, for t(e moment, e t(e propert of t(e c(arterer.
espon%ent carrierKs (eav reliance on t(e case of 0ome &nsurance Co. v. American Steams(ip A*encies, is misplace% for t(e reason t(at t(e meat of t(e controvers t(erein =as t(e vali%it of a stipulation in t(e c(arterpart e@emptin* t(e s(ipo=ners from liailit for loss %ue to t(e ne*li*ence of its a*ent, an% not t(e effects of a special c(arter on common carriers. At an rate, t(e rule in t(e nite% States t(at a s(ip c(artere% a sin*le s(ipper to carr special car*o is not a common carrier, %oes not fin% application in our :uris%iction, for =e (ave oserve% t(at t(e *ro=in* concern for safet in t(e transportation of passen*ers an% For carria*e of *oo%s sea reuires a more e@actin* interpretation of a%miralt la=s, more particularl, t(e rules *overnin* common carriers. 2.# )es. &n an action for recover of %ama*es a*ainst a common carrier on t(e *oo%s s(ippe%, t(e CJs statement on t(e reuirements of t(e la= =as reiterate%. SC (el% t(at respon%ent carrier (as sufficientl overcome, clear an% convincin* proof, t(e prima facie presumption of ne*li*ence. &t =as s(o=n %urin* t(e trial t(at after t(e loa%in* of t(e car*o in ul; in t(e s(ipJs (ol%s, t(e steel pontoon (atc(es =ere close% an% seale% =it( iron li%s, t(en covere% =it( 3 laers of serviceale tarpaulins =(ic( =ere tie% =it( steel on%s. (e (atc(es remaine% close an% ti*(tl seale% =(ile t(e s(ip =as in transit as t(e =ei*(t of t(e steel covers ma%e it impossile for a person to open =it(out t(e use of t(e s(ipJs oom. Also s(o=n, =as t(at t(e (ull of t(e vessel =as in *oo% con%ition, foreclosin* t(e possiilit of spilla*e of t(e car*o into t(e sea or seepa*e of =ater insi%e t(e (ull of t(e vessel. SC a*ree% t(at t(e ul; s(ipment of (i*(l solule *oo%s li;e fertilizer carries =it( it t(e ris; of loss or %ama*e. 4oreso, =it( a variale =eat(er con%ition prevalent %urin* its unloa%in*, as =as t(e case at ar. (is is a ris; t(e s(ipper or t(e o=ner of t(e *oo%s (as to face. Clearl, respon%ent carrier (as sufficientl prove% t(e in(erent c(aracter of t(e *oo%s =(ic( ma;es it (i*(l vulnerale to %eteriorationE as =ell as t(e ina%euac of its pac;a*in* =(ic( furt(er contriute% to t(e loss.
F.C. FI+GER !s.?AN#CO +TEAM+GIP COMPAN? FactsB (e oar% of )an*co Steams(ip Co. a%opte% a resolution =(ic( =as ratifie% t(e stoc;(ol%ers %eclarin* classes of merc(an%ise =(ic( are not to e carrie% t(e vessels of t(e compan an% pro(iitin* t(e emploees to carr %namite, po=%er or ot(er e@plosives. (e Collector of Customs suspen%e% t(e issuance of clearances for t(e vessels unless t(e carr t(e e@plosives. 'is(er, a stoc;(ol%er of )SC, file% a petition for pro(iition.
IssueB B(et(er or not t(e refusal of t(e oar% of )'C to accept for carria*e %namite, po=%er or ot(er e@plosives from an an% all s(ippers =(o ma offer suc( e@plosives for carria*e can e (el% to e a la=ful act.
Ge$dB No. &n construin* Act "8 for t(e alle*e% violation, t(e test is =(et(er t(e refusal of )SC to carr t(e e@plosives =it(out ualification or con%itions ma (ave t(e effect of su:ectin* an person or localit or t(e traffic is suc( e@plosives to an un%ul unreasonale or unnecessar pre:u%ice or %iscrimination. Common carriers in t(is :uris%iction cannot la=full %ecline to accept a particular class of *oo%s unless it appears t(at for some sufficient reason t(e %iscrimination for suc( is reasonale an% necessar. )SC (as not met t(ose con%itions. (e nature of t(e usiness of a common carrier as a pulic emploment is suc( t(at it is =it(in t(e po=er of t(e State to impose suc( :ust re*ulations in t(e interest of t(e pulic as t(e le*islator ma %eem proper.
*+ !s. *INAGON
FactsB Defen%ants =ere c(ar*e% for violation of Act "8, =(en t(e unloa%e% in t(e port of Currimao +,"86 sac;s of rice elon*in* to &locos Norte $rovincial Government from 4anila, an% c(ar*e% t(e provincial treasurer 1/ centavos for eac( sac; instea% of 6 centavos =(ic( t(e (ave een re*ularl c(ar*in* for t(e unloa%in* of t(e same ;in% of merc(an%ise an% un%er virtuall t(e same circumstances an% con%itions. (e =ere convicte%, (ence t(e appeale% to t(e (i*(er court.
IssueB B(et(er or not t(e %efen%ants as common carriers cause% pre:u%ice to t(e &locos Norte Government.
Ge$dB )es. (ere is no pretense t(at it actuall cost more to (an%le t(e rice for t(e province t(an it %i% for t(e merc(ants =it( =(om t(e special contracts =ere ma%e. (ere =as a clear %iscrimination a*ainst t(e province =(ic( is pro(iite% t(e la=. &t is (o=ever not elieve% t(at t(e la= pro(iits common carriers from ma;in* special rates for t(e (an%lin* an% transportin* of merc(an%ise, =(en t(e same are ma%e for t(e purpose of increasin* t(eir usiness an% to mana*e t(eir important interests upon t(e same principles =(ic( are re*ar%e% as soun% an% a%opte% in ot(er tra%es an% pursuits. Asolute eualit is not reuire% in all cases. &t is onl un:ust, un%ue an% unreasonale %iscrimination =(ic( t(e la= fori%s. (e la= of eualit is in force onl =(ere t(e services performe% in t(e %ifferent cases are sustantiall t(e same an% t(e circumstances an% con%itions are similar.
(OAD+TAR +GIPPIN# CO. INC. !s.CO*RT OF APPEA(+ FactsB ?n Novemer 1", 1"8, ?ADSA receive% on oar% its 4F< C(ero;ee *oo%s!certain tpes of =oo%# for s(ipment. (e *oo%s =ere insure% =it( 4anila &nsurance Co.!4&C# a*ainst various ris;s inclu%in* H?A ?SS 9) ?A ?SS ?' 0 <SSI. (e vessel, in turn, =as insure% $ru%ential Guarantee > Assurance, &nc.!$GA&# for $ 4illion. ?n Novemer 2/, 1"8, on its =a to 4anila from Nasipit, A*usan %el Norte, t(e vessel san; off imasa=a &slan%. As a result of t(e total loss of its s(ipment, t(e consi*nee ma%e a claim =it( ?ADSA =(ic(, (o=ever i*nore% t(e same. As t(e insurer, 4&C pai% t(e insure% in full settlement of its claim. ?n 'eruar , 1"8+, 4&C file% a complaint a*ainst oa%star an% $GA&, alle*in* t(at t(e sin;in* of t(e vessel =as %ue to t(e fault an% ne*li*ence of oa%star an% its emploees. oa%star claime% force ma:eur. $GA& averre% t(at 4&C (as no cause of action a*ainst it, oa%star ein* t(e part insure%. $GA& =as later %roppe% as a part %efen%ant after it pai% t(e insurance procee%s to oa%star. (e trial court ren%ere% :u%*ment for 4&C, promptin* oa%star to *o to t(e CA =(ic( affirme% t(e %ecision.
IssueB B(et(er or not oa%star is a private carrier. Ge$dB No. oa%star sumits t(at t(e vessel =as a private carrier ecause it =as not issue% a C$CE it %i% not (ave a re*ular trip or sc(e%ule nor a fi@e% routeE an% t(ere =as onl Hone s(ipper, one consi*nee for a special car*o.I (e SC (el% t(at oa%star is a common carrier. &t is not necessar t(at t(e carrier e issue% a C$C, an% t(is c(aracter is not altere% t(e fact t(at t(e carria*e of t(e *oo%s in uestion =as perio%ic, occasional, episo%ic or unsc(e%ule%. &n support of its position oa%star relie% on t(e 1"68 case of 0ome &nsurance Co. v. American Steams(ip A*encies, =(ere t(e Court (el% t(at a common carrier transportin* special car*o or c(arterin* t(e vessel to a special person ecomes a private carrier t(at is not su:ect to t(e provisions of t(e Civil Co%e. (is case (o=ever is not applicale in t(e case at ar for t(e simple reason t(at t(e actual settin*s are %ifferent. (e recor%s %o not %isclose t(at t(e 4F< C(ero;ee, on t(e %ate in uestion, un%ertoo; to carr
a special car*o or =as c(artere% to a special person onl. (ere =as no c(arter part. (e ills of la%in* faile% to s(o= an special arran*ement, ut onl a *eneral provision to t(e effect t(at t(e 4F< C(ero;ee =as a *eneral car*o carrier. 'urt(er, t(e are fact t(at t(e vessel =as carrin* a particular tpe of car*o for one s(ipper, =(ic( appears to e purel coinci%ental, is not reason enou*( to convert t(e vessel from a common carrier to a private carrier, especiall =(ere, as in t(is case, it =as s(o=n t(at t(e vessel =as also carrin* passen*ers. n%er t(e facts an% circumstances otainin* in t(is case, oa%star fits t(e %efinition of a common carrier un%er Article 1732 of t(e NCC. (e %octrine enunciate% in t(e case of De Guzman v. CA =as also mentione%. CA %ecision is (ere affirme%.
FIR+T PGI(IPPINE IND*+TRIA( CORPORATION !s. CO*RT OF APPEA(+ FactsB $etitioner is a *rantee of a pipeline concession un%er A 387 to contract, install an% operate oil pipelines. (e first pipeline concession =as *rante% in 1"67 an% =as rene=e% t(e 9 in 1""2. &n 1""+, petitioner applie% for a 4aorJs permit in 9atan*as Cit. espon%ent treasurer reuire% petitioner to pa a local ta@ ase% on its *ross receipts for t(e fiscal ear in 1""3 pursuant to t(e ocal Government Co%e. o avoi% (amperin* its operations, petitioner pai% t(e amount of ta@ for t(e first uarter un%er protest. $etitioner ar*ue% t(at as a pipeline operator =it( a *overnment concession en*a*e% in transportin* petroleum pro%ucts via pipeline it is e@empte% from pament of ta@ ase% on *ross receipts. espon%ent refuse% to ma;e reimursement on t(e *roun% t(at petitioner is not a common carrier en*a*e% in transportation usiness lan%, =ater or air.
IssueB B(et(er or not petitioner is liale to pa a local ta@ ase% on *ross receipts since it is not a common carrier.
Ge$dB No. 9ase% on Article 1732 NCC, t(ere is no %out t(at petitioner is a common carrier. &t is en*a*e% in t(e usiness of transportin* or carrin* *oo%s, i.e. petroleum pro%ucts, for (ire as a pulic emploment. &t un%erta;es to carr for all persons in%ifferentl, t(at is, to all persons =(o c(oose to emplo its services, an% transports t(e *oo%s lan% an% for compensation. (e fact t(at petitioner (as a limite% clientele %oes not e@clu%e it from t(e %efinition of a common carrier. !De Guzman ulin* up(el%# espon%entJs ar*ument t(at t(e term Hcommon carrierI as use% in Section 133!:# of t(e ocal Government Co%e refers onl to common carriers transportin* *oo%s an% passen*ers t(rou*( movin* ve(icles or vessels eit(er lan%, sea or =ater is erroneous. (e %efinition of Hcommon carriersI in NCC ma;es no %istinction as to t(e means of transportin* as lon* as it is lan%, =ater or air. &t %oes not provi%e t(at t(e transportin* of t(e passen*ers or *oo%s s(oul% e motor ve(icle. &t is clear t(at t(e le*islative intent in e@clu%in* from t(e ta@in* po=er of t(e local *overnment unit t(e imposition of usiness ta@ a*ainst common carriers is to prevent a %uplication of t(e socalle% common carrierKs ta@. $etitioner is alrea% pain* 3 common carrierKs ta@ on its *ross salesFearnin*s un%er t(e National &nternal evenue Co%e. o ta@ petitioner a*ain on its *ross receipts in its transportation of petroleum usiness =oul% %efeat t(e purpose of t(e ocal Government Co%e.
GOME IN+*RANCE COMPAN? !s. AMERICAN +TEAM+GIP A#ENCIE+ INC. FactsB A $eruvian firm s(ippe% fis(meal t(rou*( t(e SS C(o=orou*( consi*ne% to t(e San 4i*uel 9re=er an% insure% t(e 0ome &nsurance Co. (e car*o arrive% in 4anila an% =as %isc(ar*e% into t(e li*(ters of uzon Steve%orin* Co. B(en t(e car*o =as %elivere% to S49 t(ere =ere s(orta*es. 0ome &nsurance Co. pai% S49 $1,/// after its %eman%. 0ome &nsurance file% for reimursement from uzon Steve%orin* an% American Steams(ip A*encies, o=ner an% operator of t(e vessel. (e lo=er court asolve% uzon after fin%in* t(at it oserve% t(e reuire% %ili*ence ut or%ere% ASA to reimurse 0ome &nsurance, %eclarin* t(at Art. +87 of t(e Co%e of Commerce ma;es t(e s(ip a*ent civill liale for
%ama*es in favor of t(ir% persons %ue to t(e con%uct of carrierJs captain an% t(at t(e stipulation in t(e c(arter part e@emptin* o=ner from liailit is a*ainst pulic polic un%er Art. 17, NCC. ASA appeale%, alle*in* t(at un%er t(e provisions of t(e C(arter $art referre% to in t(e ills of la%in*, t(e c(arterer, not t(e s(ipo=ner is responsile for an loss or %ama*e of t(e car*o.
IssueB Are t(e provisions of t(e NCC applicaleO Ge$dB No. (e NCC provisions on common carriers s(oul% not appl =(ere t(e common carrier is not actin* as suc( ut as a private carrier. n%er American 5urispru%ence, a common carrier un%erta;in* to carr a special car*o or c(artere% to a special person onl ecomes a private carrier. As a private carrier, a stipulation e@emptin* t(e o=ner from liailit for t(e ne*li*ence of its a*ent is vali%. (e stipulation in t(e c(arter part asolvin* t(e o=ner from liailit for loss %ue to t(e ne*li*ence of its a*ent =oul% e voi% onl if strict pulic polic *overnin* common carrier is applie%. Suc( polic (as no force =(ere t(e pulic at lar*e is not involve%, as in t(e case of a s(ip totall c(artere% for t(e use of a sin*le part. (e stipulation e@emptin* t(e o=ner from liailit for ne*li*ence of its a*ent is not a*ainst pulic polic an% is %eeme% vali%. ecover canJt e (a%, for loss or %ama*e to t(e car*o a*ainst s(ipo=ners, unless t(e same is %ue to personal acts or ne*li*ence of sai% o=ner or its mana*ers, as %istin*uis(e% from a*ents or emploees.
+AN PA&(O !s. PANTRANCO FactsB $ANANC? offers $9 service for passen*ers an% frei*(t. &t operates passen*er uses from 4etro 4anila to 9icol e*ion an% astern Samar. ?n 4arc( 27,1"8/ it reueste% 4A&NA for aut(orit to leaseFpurc(ase a vessel for its pro:ect to operate a ferroat service from 4atno*,Sorso*on an% Allen,Samar t(at =ill provi%e service to compan uses an% frei*(t truc;s t(at (ave to cross San 9ernar%o Strait.(is =as not *iven %ue course ecause t(e 4atno*Allen run is a%euatel service% Car%inal S(ippin* Corp. an% pitacio San $alo an% mar;et con%itions in t(e propose% route cannot support t(e entr of a%%itional tonna*e. $ANANC? nevert(eless acuire% t(e vessel. &t =rote t(e C(airman of t(e 9oar% of ransportation !9?#, t(at it proposes to operate a ferr service to carr its passen*er uses an% frei*(t truc;s et=een Allen an% 4atno* in connection =it( its trips to acloan Cit. $ANANC? claims t(at it can operate a ferr service in connection =it( its franc(ise for us operation in t(e (i*(=a from $asa Cit to acloan Cit for t(e purpose of continuin* t(e (i*(=a, =(ic( is interrupte% a small o% of =ater, t(e sai% propose% ferr operation is merel a necessar an% inci%ental service to its main service an% oli*ation of transportin* its passen*ers from $asa Cit to acloan Cit. Suc( ein* t(e case t(ere is no nee% to otain a separate certificate for pulic convenience to operate a ferr service. (e 9? *rante% aut(orit to $ANANC? to operate a private ferr oat service, to =(ic( t(e petitioners oppose%.
IssueB BFN a lan% transportation compan can e aut(orize% to operate a ferr service or coast=ise or interislan% s(ippin* service alon* its aut(orize% route as an inci%ent to its franc(ise =it(out t(e nee% of filin* a separate application for t(e same.
Ge$dB No. Consi%erin* t(e environmental circumstances of t(e case, t(e conveance of passen*ers, truc;s an% car*o from 4atno* to Allen is certainl not a ferr oat service ut a coast=ise or interislan% s(ippin* service. n%er no circumstance can t(e sea et=een 4atno* an% Allen e consi%ere% a continuation of t(e (i*(=a. B(ile a ferr oat service (as een consi%ere% as a continuation of t(e (i*(=a =(en crossin* rivers or even la;es, =(ic( are small o% of =aters separatin* t(e lan%, (o=ever, =(en as in t(is case t(e t=o terminals, 4atno* an% Allen are separate% an open sea it can not e consi%ere% as a continuation of t(e (i*(=a. espon%ent $ANANC? s(oul% secure a separate C$C for t(e operation of an interislan% or
coast=ise s(ippin* service in accor%ance =it( t(e provisions of la=. &ts C$C as a us transportation cannot e merel amen%e% to inclu%e t(is =ater service un%er t(e *uise t(at it is a mere private ferr service. (e contention of private respon%ent $ANANC? t(at its ferr service operation is as a private carrier, not as a common carrier for its e@clusive use in t(e ferrin* of its passen*er uses an% car*o truc;s is asur%. $ANANC? %oes not %en t(at it c(ar*es its passen*ers separatel from t(e c(ar*es for t(e us trips an% issues separate tic;ets =(enever t(e oar% t(e 4< 9lac; Doule t(at crosses 4atno* to Allen, $ANANC? cannot preten% t(at in issuin* tic;ets to its passen*ers it %i% so as a private carrier an% not as a common carrier. (e Court %oes not see an reason =( inspite of its amen%e% franc(ise to operate a private ferr oat service it cannot accept =al;in passen*ers :ust for t(e purpose of crossin* t(e sea et=een 4atno* an% Allen. &n%ee% evi%ence to t(is effect (as een sumitte%.
NATIONA( +TEE( CORPORATION !s. CO*RT OF APPEA(+ FactsB ?n 5ul 17, 1"7, plaintiff NSC as c(arterer an% %efen%ant
IssueB BFN
8M* !s. #ARCIA FactsB (e follo=in* memoran%a, circulars an%For or%ers are sou*(t to e nullifie% t(e instant petition, vizL !a# D?C 4emoran%um ?r%er "/3"+, %ate% 5une 26, 1""/ relative to t(e implementation of a fare ran*e sc(eme for provincial us services in t(e countr, allo=in* provincial us operators to c(ar*e passen*ers rates =it(in a ran*e of 1+ aove an% 1+ elo= t(e '9 official rate for a perio% of one ear. '9 C(airman, 'ernan%o, fin%in* t(e 4? not le*all feasile sumitte% a memoran%um to D?C Secretar ?ros as it contravenes t(e $ulic Service Act for t(e follo=in* reasonsL i. t(e rates to e approve% s(oul% e propose% pulic service operators ii. t(ere s(oul% e a pulication an% notice to concerne% or affecte% parties in t(e territor affecte% iii. a pulic (earin* s(oul% e (el% for t(e fi@in* of t(e rates (e c(airman a%%e% t(at to allo= us operators to c(ar*e fares 1+ aove t(e present '9 fares in t(e =a;e of t(e %evastation, %eat( an% sufferin* cause% t(e 5ul 16 eart(ua;e =ill not e sociall =arrante% an% =ill e politicall unsoun%. $rovincial 9us ?perators Association of t(e $(ilippines, &nc. !$9?A$# file% an application for an acrosst(e oar% fare increase of $/./8+ per ;ilometer. &t =as oppose% $(ilippine Consumers 'oun%ation, &nc. an% $erla C. 9autista alle*in* t(at t(e propose% rates =ere e@oritant an% unreasonale. (e sai% increase =as *rante% '9. !# D?C Department ?r%er No."2+87, %ate% 4arc( 3/, 1""2, %efinin* t(e polic frame=or; on t(e re*ulation of transport servicesE Amon* t(e salient provisions of =(ic( inclu%eL H&n %eterminin* pulic nee%, t(e presumption of nee% for a service s(all e %eeme% in favor of t(e applicant. (e ur%en of provin* t(at t(ere is no nee% for a propose% service s(all e =it( t(e oppositor!s#.I !c# D?C 4emoran%um %ate% ?ctoer 8, 1""2, lain* %o=n rules an% proce%ures to implement Department ?r%er No. "2+87E !%# '9 4emoran%um Circular No. "2//", provi%in* implementin* *ui%elines on t(e D?C Department ?r%er No. "2+87E an% !e# '9 ?r%er %ate% 4arc( 2, 1"" in Case No. "3112. Sometime in 4arc(, 1"", private respon%ent $9?A$, availin* itself of t(e %ere*ulation polic of t(e D?C allo=in* provincial us operators to collect plus 2/ an% minus 2+ of t(e prescrie% fare =it(out first (avin* file% a petition for t(e purpose an% =it(out t(e enefit of a pulic (earin*, announce% a fare increase of 2/ percent of t(e e@istin* fares. $etitioner 4 file% a petition efore t(e '9 opposin* t(e up=ar% a%:ustment of us fares. '9 %ismisse% t(e petition (ence t(e present one.
IssueB B(et(er or not t(e assaile% or%ersFcirculars are vali%. Ge$dB B(ile t(e aut(orit of t(e D?C an% t(e '9 to issue a%ministrative or%ers to re*ulate t(e transport sector is reco*nize%, t(e Court foun% t(at t(e committe% *rave ause of %iscretion in issuin* D?C Department ?r%er No. "2+87 an% '9 4emoran%um Circular No. "2//" promul*atin* t(e
implementin* *ui%elines on D?C Department ?r%er No. "2+87, t(e sai% a%ministrative issuances ein* amen%ator an% violative of t(e $ulic Service Act an% t(e ules of Court. 'are an*e Sc(emeL (e 2/ fare increase impose% $9?A$ =it(out t(e enefit of a petition an% a pulic (earin* is null an% voi% an% of no force an% effect. $resume% $ulic Nee%L A C$C is an aut(orization *rante% t(e '9 for t(e operation of lan% transportation services for pulic use as reuire% la=. $ursuant to Section 16!a# of t(e $ulic Service Act, as amen%e%, t(e follo=in* reuirements must e met efore a C$C ma e *rante%, to =itL !i# t(e applicant must e a citizen of t(e $(ilippines, or a corporation or copartners(ip, association or :ointstoc; compan constitute% an% or*anize% un%er t(e la=s of t(e $(ilippines, at least 6/ of its stoc; or pai%up capital must elon* entirel to citizens of t(e $(ilippinesE !ii# t(e applicant must e financiall capale of un%erta;in* t(e propose% service an% meetin* t(e responsiilities inci%ent to its operationE an% !iii# t(e applicant must prove t(at t(e operation of t(e pulic service propose% an% t(e aut(orization to %o usiness =ill promote t(e pulic interest in a proper an% suitale manner. &t is un%erstoo% t(at t(ere must e proper notice an% (earin* efore t(e $SC can e@ercise its po=er to issue a C$C. B(ile a%optin* t(e fore*oin* reuisites for t(e issuance of a C$C, '9 4emoran%um Circular No. "2//", $art &<, provi%es for et incon*ruous an% contra%ictor polic *ui%eline on t(e issuance of a C$C. (e *ui%elines statesL H(e issuance of a Certificate of $ulic Convenience is %etermine% pulic nee%. (e presumption of pulic nee% for a service s(all e %eeme% in favor of t(e applicant, =(ile t(e ur%en of provin* t(at t(ere is no nee% for t(e propose% service s(all e t(e oppositorKs.I 9 its terms, pulic convenience or necessit *enerall means somet(in* fittin* or suite% to t(e pulic nee%. As one of t(e asic reuirements for t(e *rant of a C$C, pulic convenience an% necessit e@ists =(en t(e propose% facilit or service meets a reasonale =ant of t(e pulic an% suppl a nee% =(ic( t(e e@istin* facilities %o not a%euatel suppl. (e e@istence or none@istence of pulic convenience an% necessit is t(erefore a uestion of fact t(at must e estalis(e% evi%ence, real an%For testimonialE empirical %ataE statistics an% suc( ot(er means necessar, in a pulic (earin* con%ucte% for t(at purpose. (e o:ect an% purpose of suc( proce%ure, amon* ot(er t(in*s, is to loo; out for, an% protect, t(e interests of ot( t(e pulic an% t(e e@istin* transport operators. No *rave ause of %iscretion (o=ever =as committe% in t(e issuance of D?C 4emoran%um ?r%er No. "/3"+ an% D?C 4emoran%um %ate% ?ctoer 8, 1""2, t(e same ein* merel internal communications et=een a%ministrative officers.
TATAD !s. #ARCIA FactsB D?C planne% to construct a li*(t rail=a transit line alon* DSA referre% to as DSA i*(t ail ransit &&& !DSA &&&#. (en $resi%ent Auino, si*ne% into la= t(e 9uil%?perateransfer !9?# a=. After preualifin* t(e i%%ers for t(e construction of t(e sai% transit, it =as foun% t(at out of all t(e applicants, onl t(e DSA Consortium met t(e reuirements. D?C an% respon%ent DSA Corporation, t%. !a private corporation or*anize% un%er t(e la=s of 0on*on*# in sustitution of t(e DSA Consortium, entere% into an A*reement to 9uil%, ease an% ransfer a i*(t ail ransit Sstem for DSA un%er t(e terms of t(e 9? a=. D?C sou*(t t(e approval of t(e $resi%ent ut t(e same =as %enie%. (us, D?C, represente% Secretar Garcia, an% private respon%ent entere% into a supplemental a*reementRHevise% an% estate% A*reement to 9uil%, ease an% ransfer a i*(t ail ransit Sstem for DSA so as to clarif t(eir respective ri*(ts an% responsiilities an% to sumit Supplemental A*reement to t(e $resi%ent.
$etitioners, in t(eir capacit as Senators an% ta@paers, uestion t(e constitutionalit of t(e t=o a*reements et=een D?C an% private respon%ent. (e conten% t(at it *rants DSA Corp., t%., a forei*n corporation, t(e o=ners(ip of DSA &&& =(ic( is a pulic utilit. Secretar Garcia an% private respon%ent on t(e ot(er (an%, conten% t(at t(e nationalit reuirement for pulic utilities man%ate% t(e Constitution %oes not appl to private respon%ent.
IssueB Does t(e fact t(at DSA Corporation, t%., a forei*n corporation, o=n t(e facilities an% euipment of t(e &&& mean it also o=n t(e &&& as a pulic utilitO
Ge$dB No. B(at private respon%ent o=ns are t(e rail trac;s, rollin* stoc;s li;e t(e coac(es, rail stations, terminals an% t(e po=er plant, not a pulic utilit. B(ile a franc(ise is nee%e% to operate t(ese facilities to serve t(e pulic, t(e %o not t(emselves constitute a pulic utilit. As rule% in &loilo &ce > Col% Stora*e Co. v. $ulic Service 9oar%, =(at constitutes a pulic utilit is not t(eir o=ners(ip ut t(eir use to serve t(e pulic. &n la=, t(ere is a clear %istinction et=een t(e operation of a pulic utilit an% t(e o=ners(ip of t(e facilities an% euipment use% to serve t(e pulic. (e ri*(t to operate a pulic utilit ma e@ist in%epen%entl an% separatel from t(e o=ners(ip of t(e facilities t(ereof. ?ne can o=n sai% facilities =it(out operatin* t(em as a pulic utilit, or conversel, one ma operate a pulic utilit =it(out o=nin* t(e facilities use% to serve t(e pulic. (e %evotion of propert to serve t(e pulic ma e %one t(e o=ner or t(e person in control t(ereof =(o ma not necessaril e t(e o=ner t(ereof. &n t(e case at ar, private respon%ent an% D?C a*ree% t(at on completion %ate, private respon%ent =ill imme%iatel %eliver possession of t(e sstem =a of lease for 2+ ears, %urin* =(ic( perio% D?C s(all operate t(e same as a common carrier an% private respon%ent s(all provi%e tec(nical maintenance an% repair services to D?C. Clearl, private respon%ent =ill not run t(e li*(t rail ve(icles an% collect fees from t(e ri%in* pulic. &t =ill (ave no %ealin*s =it( t(e pulic an% t(e pulic =ill (ave no ri*(t to %eman% an services from it. &t is D?C =(ic( s(all operate t(e DSA &&&. (erefore, private respon%ent, DSA Corp., t%. %oes not o=n DSA &&& as a pulic utilit.
+AMAR MININ# COMPAN? INC. !s. NORDE*T+CGER ((O?D FactsB (e case arose from an importation ma%e plaintiff, SA4A of one crate ?ptima =el%e% =e%*e =ire sieves t(rou*( t(e 4FS SC0BA9NS&N a vessel o=ne% %efen%ant N?DSC0 ?)D, !represente% in t(e $(ilippines its a*ent, C.'. S0A$ > C?., &NC.#, =(ic( s(ipment is covere% 9ill of a%in* No. 18 %ul issue% to consi*nee SA4A 4&N&NG C?4$AN), &NC. pon arrival of t(e aforesai% vessel at t(e port of 4anila, t(e importation =as unloa%e% an% %elivere% in *oo% or%er an% con%ition to t(e on%e% =are(ouse of A4C). (e *oo%s =ere (o=ever never %elivere% to, nor receive% , t(e consi*nee at t(e port of %estinationRDavao. 9ill of la%in*, No. 18 sets fort( in t(e pa*e 2 t(ereof t(at t(e *oo%s =ere receive% N?DSC0 ?)D at t(e Hport of loa%in* at 9remen, German, =(ile t(e frei*(t (a% een prepai% up to t(e port of %estination or t(e Hport of %isc(ar*e of *oo%sIRDavao. (e carrier un%ertoo; to transport t(e *oo%s in its vessel, 4FS S0BA9NS&N, onl up to t(e Hport of %isc(ar*e from s(ipIR4anila. (ereafter, t(e *oo%s =ere to e trans(ippe% t(e carrier to t(e port of %estination or Hport of %isc(ar*e of *oo%sI. Section 1, para*rap( 3 of 9ill of a%in* No. 18, statesL H(e carrier s(all not e liale in an capacit =(atsoever for an %ela, loss or %ama*e occurrin* efore t(e *oo%s enter s(ipJs tac;le to e loa%e% or after t(e *oo%s leave s(ipJs tac;le to e %isc(ar*e%, trans(ippe% or for=ar%e%. @@@I (e trial court ren%ere% :u%*ment in favor of plaintiff, (ence t(e appeal.
IssueB B(et(er or not t(e various clauses an% stipulations in t(e 9ill of la%in* is vali%. Ge$dB )es. (e vali%it of stipulations in ills of la%in* e@emptin* t(e carrier from liailit for loss or %ama*e to t(e *oo%s =(en t(e same are not in its actual custo% (as een up(el% in $0?N& ASSANC C?., D. vs. N&D SAS &NS, 22 SCA 67 !1"68#. (e stipulations in t(e ill of la%in* in t(e $0?N& case =(ic( are sustantiall t(e same as t(e su:ect stipulations provi%esL H(e carrier s(all not e liale in an capacit =(atsoever for an loss or %ama*e to t(e *oo%s =(ile t(e *oo%s are not in its actual custo%.I !$ar. 2, last supar.# H(e carrier or master, in ma;in* arran*ements =it( an person for or in connection =it( all transs(ippin* or for=ar%in* of t(e *oo%s or t(e use of an means of transportation or for=ar%in* of *oo%s not use% or operate% t(e carrier, s(all e consi%ere% solel t(e a*ent of t(e s(ipper an% consi*nee an% =it(out an ot(er responsiilit =(atsoever or for t(e cost t(ereof.I !$ar. 16# 'in%in* t(e aove stipulations not contrar to la=, morals, *oo% customs, pulic or%er or pulic polic t(eir vali%it =as sustaine%. A careful perusal of t(e provisions of t(e Ne= Civil Co%e on common carriers =as loo;e% into t(e Court particularl, Article 1736 an% 1738. (ere is no %out t(at Art. 1738 fin%s no applicailit to t(e instant case. (e sai% article contemplates a situation =(ere t(e *oo%s (a% alrea% reac(e% t(eir place of %estination an% are store% in t(e =are(ouse of t(e carrier. (e su:ect *oo%s =ere still a=aitin* transs(ipment to t(eir port of %estination, an% =ere store% in t(e =are(ouse of a t(ir% part =(en last seen an%For (ear% of. Article 1736 is applicale to t(e instant suit. n%er sai% article, t(e carrier ma e relieve% of t(e responsiilit for loss or %ama*e to t(e *oo%s upon actual or constructive %eliver of t(e same t(e carrier to t(e consi*nee, or to t(e person =(o (as a ri*(t to receive t(em. &n sales, actual %eliver (as een %efine% as t(e ce%in* of corporeal possession t(e seller, an% t(e actual appre(ension of corporeal possession t(e uer or some person aut(orize% (im to receive t(e *oo%s as (is representative for t(e purpose of custo% or %isposal. 9 t(e same to;en, t(ere is actual %eliver in contracts for t(e transport of *oo%s =(en possession (as een turne% over to t(e consi*nee or to (is %ul aut(orize% a*ent an% a reasonale time is *iven (im to remove t(e *oo%s. (e court a uo foun% t(at t(ere =as actual %eliver to t(e consi*nee t(rou*( its %ul aut(orize% a*ent, t(e carrier. =o un%erta;in*s appeare% emo%ie% an%For provi%e% for in t(e 9ill of a%in* in uestion. (e first is '? 0 ANS$? ?' G??DS from 9remen, German to 4anila. (e secon%, 0 ANSS0&$4N ?' 0 SA4 G??DS from 4anila to Davao, =it( appellant actin* as a*ent of t(e consi*nee. At t(e (iatus et=een t(ese t=o un%erta;in*s of appellant =(ic( is t(e moment =(en t(e su:ect *oo%s are %isc(ar*e% in 4anila, its personalit c(an*es from t(at of carrier to t(at of a*ent of t(e consi*nee. (us, t(e c(aracter of appellantKs possession also c(an*es, from possession in its o=n name as carrier, into possession in t(e name of consi*nee as t(e latterKs a*ent. Suc( ein* t(e case, t(ere =as, in effect, actual %eliver of t(e *oo%s from appellant as carrier to t(e same appellant as a*ent of t(e consi*nee. pon suc( %eliver, t(e appellant, as erst=(ile carrier, ceases to e responsile for an loss or %ama*e t(at ma efall t(e *oo%s from t(at point on=ar%s. (is is t(e full import of Article 1736, as applie% to t(e case. (e actions of appellant carrier an% of its representative in t(e $(ilippines ein* in full fait( =it( t(e la=ful stipulations of 9ill of a%in* No. 18 an% in conformit =it( t(e provisions of t(e Ne= Civil Co%e on common carriers, a*enc an% contracts, t(e incur no liailit for t(e loss of t(e *oo%s in uestion. Appeale% %ecision is <SD. $laintiffappelleeKs complaint is D&S4&SSD.
EA+TERN +GIPPIN# (INE+ INC. !s. INTERMEDIATE APPE((ATE CO*RT FactsB &n G.. No. 6"/, sometime in or prior to 5une, 1"77, t(e 4FS AS&A&CA, a vessel operate% petitioner loa%e% at oe, 5apan for transportation to 4anila, +,/// pieces of calorize% lance pipes consi*ne% to $(ilippine 9loomin* 4ills Co., &nc., an% 7 cases of spare parts value% consi*ne% to Central e@tile 4ills, &nc. 9ot( sets of *oo%s =ere insure% a*ainst marine ris; for =it( respon%ent. &n G.. No. 7178, %urin* t(e same perio%, t(e same vessel too; on oar% 128 cartons of *arment farics an% accessories consi*ne% to 4ariveles Apparel Corporation, an% t=o cases of survein* instruments consi*ne% to Aman nterprises an% General 4erc(an%ise. (e 128 cartons =ere insure% for t(eir state% value respon%ent Niss(in an% t(e 2 cases respon%ent Do=a. nroute for oe, 5apan, to 4anila, t(e vessel cau*(t fire an% san;, resultin* in t(e total loss of s(ip an% car*o. (e respective respon%ent &nsurers pai% t(e correspon%in* marine insurance values to t(e consi*nees concerne% an% =ere t(us suro*ate% unto t(e ri*(ts of t(e latter as t(e insure%. espon%ents file% a claim for reimursement from petitioner. (e C rule% in t(eir favor to =(ic( t(e petitioner appeale%.
IssueB !1# B(ic( la= s(oul% *overn t(e Civil Co%e provisions on Common carriers or t(e Carria*e of Goo%s Sea ActO an% !2# =(o (as t(e ur%en of proof to s(o= ne*li*ence of t(e carrierO
Ge$dB !1# (e la= of t(e countr to =(ic( t(e *oo%s are to e transporte% *overns t(e liailit of t(e common carrier in case of t(eir loss, %estruction or %eterioration. As t(e car*oes in uestion =ere transporte% from 5apan to t(e $(ilippines, t(e liailit of $etitioner Carrier is *overne% primaril t(e Civil Co%e. 0o=ever, in all matters not re*ulate% sai% Co%e, t(e ri*(ts an% oli*ations of common carrier s(all e *overne% t(e Co%e of Commerce an% special la=s. (us, t(e Carria*e of Goo%s Sea Act, a special la=, is suppletor to t(e provisions of t(e Civil Co%e. !2# n%er t(e Civil Co%e, common carriers, from t(e nature of t(eir usiness an% for reasons of pulic polic, are oun% to oserve e@traor%inar %ili*ence in t(e vi*ilance over *oo%s, accor%in* to all t(e circumstances of eac( case. Common carriers are responsile for t(e loss, %estruction, or %eterioration of t(e *oo%s unless t(e same is %ue to an of t(e follo=in* causes onlL !1# 'loo%, storm, eart(ua;e, li*(tnin* or ot(er natural %isaster or calamitE $etitioner Carrier claims t(at t(e loss of t(e vessel fire e@empts it from liailit un%er t(e p(rase natural %isaster or calamit.I 0o=ever, t(e Court sai% t(at fire ma not e consi%ere% a natural %isaster or calamit. (is must e so as it arises almost invarial from some act of man or (uman means. &t %oes not fall =it(in t(e cate*or of an act of Go% unless cause% li*(tnin* or ot(er natural %isaster or calamit. &t ma even e cause% t(e actual fault or privit of t(e carrier. As t(e peril of t(e fire is not compre(en%e% =it(in t(e e@ception in Article 173, supra, Article 173+ of t(e Civil Co%e provi%es t(at all cases t(an t(ose mention in Article 173, t(e common carrier s(all e presume% to (ave een at fault or to (ave acte% ne*li*entl, unless it proves t(at it (as oserve% t(e e@traor%inar %ili*ence reuire% la=. &n t(is case, t(e respective &nsurers. as suro*ees of t(e car*o s(ippers, (ave proven t(at t(e transporte% *oo%s (ave een lost. $etitioner Carrier (as also prove% t(at t(e loss =as cause% fire. (e ur%en t(en is upon $etitioner Carrier to prove% t(at it (as e@ercise% t(e e@traor%inar %ili*ence reuire% la=, =(ic( it faile% to %o. An% even if fire =ere to e consi%ere% a natural %isaster =it(in t(e meanin* of Article 173 of t(e Civil Co%e, it is reuire% un%er Article 173" of t(e same Co%e t(at t(e natural %isaster must (ave een t(e pro@imate an% onl cause of t(e loss, an% t(at t(e carrier (as e@ercise% %ue %ili*ence to prevent or
minimize t(e loss efore, %urin* or after t(e occurrence of t(e %isaster.I (is $etitioner Carrier (as also faile% to estalis( satisfactoril. Nor ma $etitioner Carrier see; refu*e from liailit un%er t(e Carria*e of Goo%s Sea Act, &t is provi%e% t(erein t(atL Sec. !2#. Neit(er t(e carrier nor t(e s(ip s(all e responsile for loss or %ama*e arisin* or resultin* from !# 'ire, unless cause% t(e actual fault or privit of t(e carrier. 9ot( t(e rial Court an% t(e Appellate Court, in effect, foun%, as a fact, t(at t(ere =as actual fault of t(e carrier s(o=n lac; of %ili*ence in t(at =(en t(e smo;e =as notice%, t(e fire =as alrea% i*E t(at t(e fire must (ave starte% 2 (ours efore t(e same =as notice%E an% t(at after t(e car*oes =ere store% in t(e (atc(es, no re*ular inspection =as ma%e as to t(eir con%ition %urin* t(e voa*e. (e fore*oin* suffices to s(o= t(at t(e circumstances un%er =(ic( t(e fire ori*inate% an% sprea% are suc( as to s(o= t(at $etitioner Carrier or its servants =ere ne*li*ent in connection t(ere=it(. Conseuentl, t(e complete %efense affor%e% t(e C?GSA =(en loss results from fire is unavailin* to $etitioner Carrier.
NATIONA( DE,E(OPMENT COMPAN? !s. CO*RT OF APPEA(+ FactsB An a*reement =as entere% onto et=een %efen%ants National Development Compan !NDC# an% 4aritime Compan of t(e $(ilippines !4C$# in accor%ance of =(ic(, NDC as t(e first preferre% mort*a*ee of t(ree ocean*ivin* vessels inclu%in* one =it( t(e name HDona NatiI appointe% 4C$ as its a*ents to mana*e an% operate sai% vessel in its e(alf. (e . $(ilipp Corporation of t(e Ne= )or; loa%e% on oar% t(e vessel HDona NatiI at San 'rancisco, California, a total of 1,2// ales of American ra= cotton consi*ne% to 4anila 9an;in* Corporation, 4anila an% t(e $eopleJs 9an; an% rust Compan, actin* for an% in e(alf of $an Asiatic Commercial Compan, &nc. =(o represents iversi%e 4ills Corporation. (e vessel fi*ure% in a collision at &se 9a, 5apan =it( a 5apanese vessel as a result of =(ic( +/ ales of aforesai% car*o =ere lost an%For %estroe%. $laintiff !D&SC# as insurer, pai% t(e respective claims of (ol%ers of t(e ne*otiale ills of la%in* %ul en%orse% to t(em. $laintiff file% complaint for reimursement from t(e %efen%antsNDC an% 4C$ as o=ner an% s(ip a*ent respectivel. (e C ren%ere% a %ecision or%erin* t(e %efen%ants 4C$ an% NDC to pa :ointl an% soli%arit to D&SC. 4C$ an% NDC interpose% t(eir appeals. CA affirme% t(e CJs %ecision.
IssueB B(ic( la= s(all *overn loss or %estruction of *oo%s %ue to collision of vessels outsi%e $(ilippine =aters, an% t(e e@tent of liailitO
Ge$dB (is issue (as alrea% een lai% to rest t(is Court of astern S(ippin* ines &nc. v. &AC !1+/ SCA 6"7/ T1"87U# &n t(e case at ar, it (as een estalis(e% t(at t(e *oo%s in uestion are transporte% from San 'rancisco, California an% o;o, 5apan to t(e $(ilippines an% t(at t(e =ere lost or %ue to a collision =(ic( =as foun% to (ave een cause% t(e ne*li*ence or fault of ot( captains of t(e colli%in* vessels. n%er t(e aove rulin*, it is evi%ent t(at t(e la=s of t(e $(ilippines =ill appl, an% it is immaterial t(at t(e collision actuall occurre% in forei*n =aters, suc( as &se 9a, 5apan. &t appears, (o=ever, t(at collision falls amon* matters not specificall re*ulate% t(e Civil Co%e, so t(at no reversile error can e foun% in respon%ent courses application to t(e case at ar of Articles 826 to 83", 9oo; (ree of t(e Co%e of Commerce, =(ic( %eal e@clusivel =it( collision of vessels. 4ore specificall, Article 826 of t(e Co%e of Commerce provi%es t(at =(ere collision is imputale to t(e personnel of a vessel, t(e o=ner of t(e vessel at fault, s(all in%emnif t(e losses an% %ama*es incurre%
after an e@pert appraisal. 9ut more in point to t(e instant case is Article 827 of t(e same Co%e, =(ic( provi%es t(at if t(e collision is imputale to ot( vessels, eac( one s(all suffer its o=n %ama*es an% ot( s(all e soli%aril responsile for t(e losses an% %ama*es suffere% t(eir car*oes. Si*nificantl, un%er t(e provisions of t(e Co%e of Commerce, particularl Articles 826 to 83", t(e s(ipo=ner or carrier, is not e@empt from liailit for %ama*es arisin* from collision %ue to t(e fault or ne*li*ence of t(e captain. $rimar liailit is impose% on t(e s(ipo=ner or carrier in reco*nition of t(e universall accepte% %octrine t(at t(e s(ipmaster or captain is merel t(e representative of t(e o=ner =(o (as t(e actual or constructive control over t(e con%uct of t(e voa*e. (e a*reement et=een NDC an% 4C$ s(o=s t(at 4C$ is appointe% as a*ent, a term roa% enou*( to inclu%e t(e concept of s(ip a*ent in maritime la=. &n fact 4C$ =as even conferre% all t(e po=ers of t(e o=ner of t(e vessel, inclu%in* t(e po=er to contract in t(e name of t(e NDC. 9ot( o=ner an% a*ent s(oul% e %eclare% :ointl an% severall liale since t(e oli*ation =(ic( is t(e su:ect of t(e action (a% its ori*in in a fortuitous act an% %i% not arise from contract. CA %ecision is affirme%.
II. CONTRACTUAL EFFECTS A. Vigilance over Good #E(I+AN !s. A(DA? FactsB 9ienveni%o Gelisan is t(e o=ner of a frei*(t truc;. Defen%ant 9ienvei%o Gelisan an% oerto oerto entere% into a contact un%er=(ic( spiritu (ire% t(e same frei*(t truc; of Gelisan for t(e purpose of (aulin* rice, su*ar, flour an% fertilizer. &t also a*ree% t(at spiritu s(all ear an% pa all losses an% %ama*es atten%in* t(e carria*e of t(e *oo%s to e (aule% (im. 9enito Al%a, a truc;in* operator (a% ;no=n oerto spiritu. Al%a (a% a contact to (aul t(e fertilizer of t(e Atlas 'ertilizer Corporation from $ier , Nort( 0aror, to its Bare(ouse in 4an%aluon*. Al%a met spiritu at t(e *ate of $ier an% t(e latter offere% t(e use of (is truc; =it( t(e %river an% (elper. (e offer =as accepte% Al%a an% (e instructe% (is c(ec;er to let oerto spiritu (aul t(e fertilizer. spiritu ma%e t=o (auls of zooa*s of fertilizer per trip. (e fertilizer =as %elivere% to t(e %river an% (elper of spiritu =it( t(e necessar =aill receipts. spiritu, (o=ever, %i% not %eliver t(e fertilizer to t(e Atlas 'ertilizer o%e*a at 4an%aluon*. (us, 9enito Al%a =as compelle% to pa t(e value of t(e // a*s of fertilizers to Atlas 'ertilizer Corporation an% file% a compliant a*ainst oerto spiritu an% 9ienveni%o Gelisan =it( t(e C'& of 4anila. (e C'& of 4anila rule% t(at oerto spiritu =as t(e onl one liale. ?n appeal, CA rule% t(at 9ienveni%o Gelisan is li;e=ise liale for ein* t(e re*istere% o=ner of t(e truc;.
IssueB B(et(er or not Gelisan s(oul% e (el% soli%aril liale =it( spiritu, ein* t(e re*istere% o=ner of t(e truc;.
Ge$dB )es, Gelisan s(oul% e (el% soli%aril liale =it( spiritu, ein* t(e re*istere% o=ner of t(e truc;. (e Court (as invarial (el% in several %ecisions t(at t(e re*istere% o=ner of a pulic service ve(icle is responsile for %ama*es t(at ma arise from conseuences inci%ent to its operation or t(at ma e cause% to an of t(e passen*ers t(erein. (e claim of t(e petitioner t(at (e is not liale in vie= of t(e
lease contract e@ecute% an% et=een (im an% oerto spiritu =(ic( e@empts (im from liailit to t(ir% persons, cannot e sustaine% ecause it appears t(at t(e lease contract, a%verte% to, (a% not een approve% t(e $ulic service Commission. &t is settle% in our :urispru%ence t(at if t(e propert covere% a franc(ise is transferre% or lease% to anot(er =it(out otainin* t(e reuisite approval, t(e transfer is not in%in* upon t(e pulic or t(ir% persons. 0o=ever, Gelisan is not =it(out recourse ecause (e (as a ri*(t to e in%emnifie% oerto spiritu for t(e amount t(at (e ma e reuire% to pa as %ama*es for t(e in:ur cause% to 9enito Al%a, since t(e lease contract in uestion, alt(ou*( not effective a*ainst t(e pulic for not (avin* een approve% t(e $ulic Service Commission, is vali% an% in%in* et=een t(e contractin* parties. (e Court rule% t(at t(e petitioner is DN&D. Bit( costs a*ainst t(e petitioner.
&ENEDICTO !s. IAC FactsB $rivate respon%ent Green(ills Boo% &n%ustries Compan, &nc., a lumer manufacturin* firm, operates a sa=mill in -uirino. Sometime in 4a 1"8/, private respon%ent oun% itself to sell an% %eliver to 9lue Star 4a(o*an, &nc. !H9lue StarI#, a compan in 9ulacan 1//,/// oar% feet of sa=n lumer =it( t(e un%erstan%in* t(at an initial %eliver =oul% e ma%e on 4a 1+, 1"8/. o effect its first %eliver, private respon%entJs resi%ent mana*er Domina%or Cruz, contracte%
IssueB B(et(er or not petitioner 9ene%icto, ein* t(e re*istere% o=ner of t(e carrier, s(oul% e (el% liale for t(e value of t(e un%elivere% or lost sa=n lumer.
Ge$dB )es, 9ene%icto is liale for t(e un%elivere% or lost sa=n lumer as re*istere% o=ner. (ere is no %ispute t(at petitioner 9ene%icto (as een (ol%in* (erself out to t(e pulic as en*a*e% in t(e usiness of (aulin* or transportin* *oo%s for (ire or compensation. $etitioner 9ene%icto is, in rief, a common carrier. (e prevailin* %octrine on common carrier ma;es t(e re*istere% o=ner liale for conseuences flo=in* from t(e operations of t(e carrier, even t(ou*( t(e specific ve(icle involve% ma alrea% (ave een transferre% to anot(er person. (is %octrine rests upon t(e principle t(at in %ealin* =it( ve(icles re*istere% un%er t(e $ulic Service a=, t(e pulic (as t(e ri*(t to assume t(at t(e re*istere% o=ner is t(e actual or la=ful o=ner t(ereof. &t =oul% e ver %ifficult an% often impossile as a practical matter, for memers of t(e *eneral pulic to enforce t(e ri*(ts of action t(at t(e ma (ave for in:uries inflicte% t(e ve(icles ein* ne*li*entl operate% if t(e s(oul% e reuire% to prove =(o t(e actual o=ner is. (e re*istere% o=ner is not allo=e% to %en liailit provin* t(e i%entit of t(e alle*e% transferee. &n t(e case at ar, private respon%ent is not reuire% to *o eon% t(e ve(icleJs certificate of re*istration to ascertain t(e o=ner of t(e carrier. &n t(is re*ar%, t(e letter presente% petitioner alle*e%l
=ritten 9en:amin ee a%mittin* t(at icu%en =as (is %river, (a% no evi%entiar value not onl ecause 9en:amin ee =as not presente% in court to testif on t(is matter ut ecause of t(e afore mentione% %octrine. o permit t(e ostensile or re*istere% o=ner to prove =(o t(e actual o=ner is, =oul% e to set at nau*(t t(e purpose or pulic polic =(ic( infuses t(at %octrine. (e Court rule% t(at t(e $etition fro evie= is Denie%.
PGI(TRANCO +ER,ICE ENTERPRI+E+ INC. !s. CA FactsB (e victim amon Acuesta =as ri%in* in (is eas ri%er iccle alon* Calao* Cit. Also in Calao* Cit, %efen%ant $(iltranco %riven %efen%ant o*asiones Dolina 4anil(i* =as ein* pus(e% some persons in or%er to start its en*ine. As t(e us =as pus(e%, its en*ine starte% t(ere t(e us continue% its runnin* motion an% it occurre% at t(e time =(en amon A. Acuesta =(o =as still ri%in* on (is iccle =as %irectl in front of t(e sai% us. As t(e en*ine of $(iltranco starte% aruptl an% su%%enl, its runnin* motion =as also en(ance% t(e sai% functionin* en*ine, t(ere umpe% on t(e victim amon. As a result, fell an% =as ran over t(e us. Still, t(e us %i% not stop alt(ou*( it (a% alrea% umpe% an% ran over t(e victimE instea%, it procee%e% runnin*. (ereafter, $Fs*t. )aao =(o =as t(en :o**in* approac(e% t(e us %river %efen%ant 4anil(i* an% si*nale% (im to stop, ut t(e latter %i% not listen. So, t(e police officer intro%uce% (imself an% or%ere% t(e latter to stop. (e sai% %efen%ant %rivers stoppe% t(e $(iltranco us. (e trial court ren%ere% a %ecision or%erin* t(e petitioners to :ointl an% severall pa t(e private respon%ent. ?n appeal, t(e CA affirme% t(e %ecision of t(e trial court.
IssueB B(et(er or not petitioner $(iltranco as t(e re*istere% o=ner of a pulic service is liale for %ama*es arisin* from t(e tortuous acts of t(e %river.
Ge$dB )es, petitioner $(iltranco as t(e re*istere% o=ner is still liale. Article 2176 of t(e Civil Co%e provi%es t(at, HB(oever act or omission causes %ama*e to anot(er, t(ere ein* fault or ne*li*ence, is oli*e% to pa for t(e %ama*e %one. Suc( fault or ne*li*ence, if t(ere is no pree@istin* contractual relation et=een t(e parties, is calle% a uasi %elict an% is *overne% t(e provision of t(is C(apter. 'urt(er, Article 218/ of t(e Civil Co%e states t(at, Ht(e oli*ation impose% Art. 2176 is %eman%ale not onl for oneJs o=n acts or omissions, ut for t(ose of persons for =(om one is responsile. &n t(e case at ar, t(e liailit of t(e re*istere% o=ner of a pulic service ve(icle, li;e petitioner $(iltranco, for %ama*es arisin* from t(e tortuous acts of t(e %river is primar, %irect, an% :oint an% severall or soli%ar =it( t(e %river. Since t(e emploerJs liailit is primar, %irect an% soli%ar, its onl recourse if t(e :u%*ment for %ama*es is satisfie% it is to recover =(at it (as pai% from its emploee =(o committe% t(e fault or ne*li*ence =(ic( *ave rise to t(e action ase% on uasi %elict. (e court rule% t(at t(e petition is partl *rante%.
+ANTO+ !s. +I&*# FactsB $rior to April 26, 1"63,
t(e former, =(ic( =as to e a private %ocument presumal to e re*istere% if an% =(en it =as %eci%e% t(at t(e passen*er :eep of Santos =as to e =it(%ra=n from t(e ;ait a*reement. ?n April 26, 1"63, private respon%ent Siu* =as umpe% a passen*er :eepne operate% vi%a% an% %riven Severo Gra*as. (us, file% a complaint for %ama*es. 5u%*ment =as ren%ere% in favor of Siu*. ?n April 1/, 1"6, t(e S(eriff of 4anila levie% on a motor ve(icle, re*istere% in t(e name of
IssueB B(et(er or not a :eepne re*istere% in t(e name of
Ge$dB )es, t(e :eepne un%er t(e H;ait sstemI =(ic( umpe% Siu can e sol% at pulic auction to satisf t(e courtJs a=ar%. Sec. 2/ !*# of t(e $ulic Service Act provi%esL Hit s(all e unla=ful for an pulic service or for t(e o=ner, lessee or operator t(ereof, =it(out t(e approval or aut(orization of t(e Commission previousl (a% !*# to sell, alienate, mort*a*e, encumer or lease its propert, franc(ise certificates, privile*es, or ri*(ts, or an part t(ereof. &n t(e case at ar, Santos (a% fictitiousl sol% t(e :eepne to
(ITA ENTERPRI+E+ INC. !s. CA FactsB Sometime in 1"66, t(e spouses Nicasio ?campo an% 'rancisca Garcia, (erein private respon%ent purc(ase% in installment from t(e Delta 4otor Sales Corp. five oota Corona Stan%ar% cars to e use% as ta@icas. Since t(e (a% no franc(ise to operate ta@icas, t(e contracte% =it( petitioner, for t(e use of t(e latterJs certificate of pulic convenience in consi%eration of an initial pament of $1,/// an% a mont(l rental of $2// per ta@i ca unit. Aout a ear later, one of sai% ta@icas %riven t(eir emploee, meterio 4artin, colli%e% =it( a motorccle =(ose %river, 'lorante Galvez, %ie% from t(e (ea% in:uries sustaine%. A criminal case =as file% a*ainst t(e %river =(ile a civil case =as file% a*ainst ita enterprises see;in* for %ama*es. &n t(e C'& of 4anila, petitioner ita nterprises =as a%:u%*e% liale for %ama*es as t(e re*istere% o=ner of t(e ta@ica. (us, a =rit of e@ecution =as issue% an% one of t(e ve(icles of respon%ent spouses =as levie% upon an% sol% at pulic auction.
(ereafter, respon%ent Nicasio ?campo %eci%e% to re*ister (is ta@ica in (is name, ut ita nterprises alle*e%l refuse%. 0ence, t(e spouses file% a complaint. (e C'& of 4anila or%ere% ita nterprises to transfer t(e re*istration certificate. ?n Appeal, t(e &AC mo%ifie% t(e %ecision.
IssueB B(et(er or not t(e parties entere% into a H;ait sstemI Ge$dB )es, t(e parties entere% into a H;ait sstemI. (e parties (erein operate% un%er an arran*ement, commonl ;no=n as t(e H;ait sstemI, =(ere a person =(o (as een *rante% a certificate of convenience allo=s anot(er person =(o o=ns motor ve(icles to operate un%er suc( franc(ise for a fee. A certificate of pulic convenience is a special privile*e conferre% t(e *overnment. Ause of t(is privile*e t(e *rantees t(ereof cannot e countenance%. (e ;ait sstem (as een i%entifie% as one of t(e root causes of t(e prevalence of *raft an% corruption in t(e *overnment transportation services. (us, t(e concept of ait sstem ein* contrar to pulic polic an% voi% an% e@istent, t(e court cannot allo= eit(er of t(e parties to enforce an ille*al contract u leaves t(em ot( =(ere it fin%s t(em. (e Court rule% t(at t(e %ecisions ren%ere% t(e C'& of 4anila an% &AC are (ere annulle% an% set asi%e.
TEA MAR8ETIN# !s. IAC FactsB ?n 4a ", 1"7+, t(e %efen%ant ou*(t from t(e plaintiff a motorccle =it( complete accessories an% a si%ecar in t(e total consi%eration of $8,///.//. ?ut of t(e total purc(ase price t(e %efen%ant *ave a %o=n pament of $1,7//.// =it( a promise t(at (e =oul% pa plaintiff t(e alance =it(in si@t %as. (e %efen%ant, (o=ever, faile% to compl =it( (is promise an% so upon (is o=n reuest, t(e perio% of pain* t(e alance =as e@ten%e% to one ear in mont(l installments until 5anuar 1"76 =(en (e stoppe% pain* anmore. (e plaintiff ma%e %eman%s ut :ust t(e same t(e %efen%ant faile% to compl t(us forcin* plaintiff to consult a la=er an% file t(is action for (is %ama*e. &t also appears an% t(e court so fin%s t(at t(e %efen%ant purc(ase% t(e motorccle in uestion an% t(e Court so fin%s t(at %efen%ant purc(ase% t(e motorccle in uestion, particularl for t(e purpose of en*a*in* an% usin* t(e same in transportation usiness an% for t(is purpose sai% trimoile unit =as attac(e% to t(e plaintiffJs transportation line =(o (a% t(e franc(ise, so muc( so t(at in t(e re*istration certificate, t(e plaintiff appears to e t(e o=ner of t(e unit. 'urt(ermore, it appears to (ave een a*ree% furt(er et=een, t(e plaintiff an% t(e %efen%ant, t(at plaintiff =oul% un%erta;e t(e earl re*istration of t(e unit in uestion =it( t(e C. (us, for t(e re*istration of t(e unit for t(e ear 1"76, per a*reement, t(e %efen%ant *ave to t(e plaintiff t(e amount of $82.// of rits re*istration, as =ell as t(e insurance covera*e of t(e unit. $etitioner e:a 4ar;etin* an%For An*el 5aucian file% an action for t(e Hsum of mone =it( %ama*esI. (e cit court ren%ere% :u%*ment in favor of petitioner. ?n appeal, t(e %ecision =as affirme% in toto.
IssueB B(et(er or not ;ait sstem applies in t(e instant case. Ge$dB )es, t(e parties operate% un%er an a*reement calle% H;ait sstemI. (is is a sstem =(ere a person =(o (as een *rante% a certificate of pulic convenience allo=s anot(er person =(o o=ns motor ve(icles to operate un%er suc( franc(ise for a fee. A certificate of pulic convenience is a special privile*e conferre% t(e *overnment. Alt(ou*( not outri*(tl penalize% as a criminal offense, t(e ;ait sstem is invarial reco*nize% as ein* contrar to pulic polic an% t(erefore, voi% an% ine@istent un%er Article 1/ of t(e Civil Co%e. (us, court =ill not ai% eit(er part to enforce an ille*al contract, ut =ill leave ot( =(ere it fin%s t(em.
(e court rule% t(at t(e petition is (ere %ismisse% for lac; of merit. (e assaile% %ecision of t(e &AC no= t(e CA is A''&4D.
MA#&OO !s. &ERNARDO FactsB (e spouses 4a*oo are t(e parents of t(e 8ear ol% c(il% ;ille% in a motor ve(icle acci%ent, t(e ve(icle o=ne% t(e %efen%ant 9ernar%o. At t(e time of t(e acci%ent, sai% passen*er :eepne =as %riven Cora%o oue. (e contract et=een Conra%o oue an% %efen%ant Delfin 9ernar%o =as t(at oue =as to pa to %efen%ant t(e sum of $8.//, =(ic( (e pai% to sai% %efen%ant, for privile*e of %rivin* t(e :eepne, it ein* t(eir a*reement t(at =(atever earnin*s oue coul% ma;e out of t(e use of t(e :eepne in transportin* passen*ers from one point to anot(er =oul% elon* entirel to Conra%o oue. As a result of t(e acci%ent, Conra%o oue =as prosecute% for (omici%e t(ru rec;less impru%ence efore t(e C'& of 4anila, an% t(at upon arrai*nment, Conra%o oue plea%e% *uilt to t(e information an% =as sentence% to a :ail term, to in%emnif t(e (eirs of t(e %ecease% in t(e sum of $3, ///.// =it( susi%iar imprisonment in case of insolvenc. Conra%o oue serve% (is sentence ut (e =as not ale to pa t(e in%emnit ecause (e =as insolvent.
IssueB B(et(er or not an emploeremploee relations(ip e@ists et=een a :eepne o=ner an% a %river un%er a Houn%ar sstemI a*reement.
Ge$dB )es, t(ere e@ist an emploeremploee relations(ip un%er a oun%ar sstem arran*ement. (e features =(ic( c(aracterize t(e oun%ar sstem namel, t(e fact t(at t(e %river %oes not receive a fi@e% =a*e ut *ets onl t(e e@cess of t(e amount of fares collecte% (im over t(e amount (e pas to t(e :eep o=ner, an% t(at t(e *asoline consume% t(e :eepne is for t(e account of t(e %river are not sufficient to =it(%ra= t(e relations(ip et=een t(em from t(at of emploer emploee. Conseuentl, t(e :eepne o=ner is susi%iaril liale as emploer in accor%ance =it( article 1/3 of t(e evise% $enal Co%e. (e Court rule% t(at t(e :u%*ment appeale% from is (ere affirme%.
#ANLON !s. CA FactsB &n 1"6+, private respon%ent umamin* contracte% t(e services of petitioner Ganzon to (aul 3/+ tons of scrap iron from 4ariveles, 9ataan on oar% t(e latterJs li*(ter. $ursuant to t(eir a*reement, private respon%ent %elivere% t(e scrap iron to t(e captain for loa%in*. B(en (alf of t(e scrap iron =as loa%e%, 4aor A%vincula %eman%e% $+,///.// from private respon%ents, =(ic( t(e latter refuse% to *ive, promptin* t(e 4aor to %ra= (is *un an% s(oot at (im. (e *uns(ot =as not fatal ut (e (a% to e ta;en to a (ospital. (ereafter, t(e loa%in* of t(e scrap iron =as resume%. (e Actin* 4aor, accompanie% t(ree policemen, or%ere% t(e captain an% (is cre= to %ump t(e scrap iron, =it( t(e rest rou*(t to Nassco Compoun%. A receipt =as issue% statin* t(at t(e 4unicipalit of 4ariveles (a% ta;en custo% of t(e scrap iron.
IssueB B(et(er or not petitioner is *uilt of reac( of contract of transportation an% in imposin* a liailit a*ainst (im commencin* from t(e time t(e scrap iron =as place% in (is custo% an% control (ave no asis in fact an% in la=.
Ge$dB )es, petitioner is *uilt of reac( of t(e contract of transportation. 9 t(e sai% act of %eliver, t(e scraps =ere uncon%itionall place% in t(e possession an% control of t(e common carrier, an% upon t(eir receipt t(e carrier for transportation, t(e contract of carria*e =as %eeme% perfecte%. Conseuentl, t(e
petitioner carrierJs e@traor%inar responsiilit for t(e loss, %estruction or %eterioration of t(e *oo%s commence%. $ursuant to Article 1736, suc( e@traor%inar responsiilit =oul% cease onl upon t(e %eliver, actual or constructive, t(e carrier to t(e consi*nee, or to t(e person =(o (as a ri*(t to receive t(em. (e fact t(at part of t(e s(ipment (a% not een (ea%e% t(e li*(ter %i% not impair t(e sai% contract of transportation as t(e *oo%s remaine% in t(e custo% an% control of t(e carrier, aleit still unloa%e%. (e Court rule% t(at t(e petition is DN&D.
EA+TERN +GIPPIN# (INE+ INC. !s. CA FactsB ?n Septemer , 1"78, t(irteen coils of uncoate% 7 =ire stress relieve% for pre stresse% concrete =ere s(ippe% on oar% t(e vessel H5upri
IssueB B(et(er or not rains an% rou*( is consi%ere% as caso fortuito =(ic( =oul% e@empt petitioner from liailit for t(e %eterioration of t(e car*o.
Ge$dB No, suc( is not consi%ere% caso fortuito =(ic( =oul% e@empt from liailit for t(e %eterioration of t(e car*o. Art. 1737 of t(e Civil Co%e provi%es t(at, Hcommon carrier are oun% to oserve e@traor%inar vi*ilance over *oo%s accor%in* to all circumstances of eac( case.I 'urt(er Article 173+ of t(e Civil Co%e provi%es t(at, Hif t(e *oo%s are lost, %estroe%, or %eteriorate%, common carriers are presume% to (ave een at fault or to (ave acte% ne*li*entl, unless t(e prove t(at t(e oserve% e@traor%inar %ili*ence as reuire% in Article 1733.I &n t(e case at ar, (eav rains an% rou*( seas =ere not caso fortuito, ut normal occurrences t(at an ocean *oin* vessel, particularl in t(e mont( of Septemer, is a mont( of rains an% (eav seas =oul% encounter as a matter of routine. (e are not unforeseen nor unforeseeale. (ese are con%itions t(at ocean *oin* vessels =oul% encounter an% provi%e for, in t(e or%inar course of voa*e. (at rain =ater !not sea =ater# foun% its =a into t(e (ol%s of t(e 5upri
+AR8IE+ TO*R+ PGI(IPPINE+ !s. CO*RT OF APPEA(+ FactsB ?n Au*ust 31, 1"8, 'atima oar%e% petitionerJs De lu@e us in 4anila on (er =a to e*aspi Cit. 0er rot(er (elpe% (er loa% t(ree pieces of lu**a*e containin* all of (er optometr revie= oo;s, materials an% euipment, trial contact lenses, passport an% visa. 0er elon*in*s =ere ;ept in t(e a**a*e compartment an% %urin* t(e stopover at Daet, it =as %iscovere% t(at onl one a* (a% remaine% in t(e
a**a*e compartment. Some of t(e passen*ers su**este% retracin* t(e route to tr to recover t(e items, ut t(e %river i*nore% t(em an% procee%e% to e*aspi Cit. 'atima reporte% t(e loss to (er mot(er, =(o =ent to petitionerJs office. $etitioner merel offere% (er one t(ousan% pesos for eac( piece of lu**a*e lost, =(ic( s(e turne% %o=n. 'atima as;e% t(e (elp of ra%io stations an% even from $(iltranco us %rivers =(o plie% t(e same route. (us, one of 'atimaJs a*s =as recovere%. espon%ents, t(rou*( counsel, %eman%e% satisfaction of t(eir complaint from petitioner. $etitioner apolo*ize% t(rou*( a letter. After more t(an nine mont(s of fruitless =aitin*, respon%ents %eci%e% to file t(e case. (e trial court rule% in favor of respon%ents. ?n appeal, t(e appellate court affirme% t(e trial courtJs :u%*ment.
IssueB B(et(er or not petitioner is liale for t(e lost a**a*eJs of 'atima. Ge$dB
(e petitioner is liale for t(e lost a**a*eJs. n%er t(e Civil Co%e, Hcommon carriers from t(e nature of t(eir usiness an% for reasons of pulic polic are oun% to oserve e@traor%inar %ili*ence an% vi*ilance over *oo%s transporte% t(e,I an% t(is liailit Hlast from t(e time t(e *oo%s are uncon%itionall place% in t(e possession of, an% receive% t(e carrier for transportation until t(e same are %elivere%, actuall or constructivel, t(e carrier to t(e person =(o (as a ri*(t to receive t(em, Hunless t(e loss is %ue to an of t(e e@cepte% causes un%er Article 173 t(ereof. &n t(e case at ar, t(e cause of t(e loss =as petitionerJs ne*li*ence in not ensurin* t(at t(e %oors of t(e a**a*e compartment of its us =ere securel fastene%. As a result of t(is lac; of care, almost all t(e a**a*e =as lost to t(e pre:u%ice of t(e pain* passen*ers. (us, petitioner is (el% liale. (e Court affirme% t(e %ecision of t(e Court of Appeals =it( mo%ification.
,A(ENL*E(A GARDJOOD AND IND*+TRIA( +*PP(? INC. !s. CA FactsB
IssueB B(et(er or not t(e stipulation in t(e c(arter part e@emptin* t(e s(ipo=ner from liailit for t(e loss of t(e car*o arisin* from t(e ne*li*ence of its captain vali%.
Ge$d B (e stipulation in t(e instant case is vali%. &n a contract of private carria*e, t(e parties ma vali%l stipulate t(at responsiilit for t(e car*o rests solel on t(e c(arterer, e@emptin* t(e s(ipo=ner from liailit for t(e loss of or %ama*e to t(e car*o cause% even t(e ne*li*ence of t(e s(ip captain. $ursuant to Article 13/6 of t(e Civil Co%e, suc( stipulation is vali% ecause it is freel entere% into t(e parties an% t(e same is not contrar to la=, morals, *oo% customs, pulic or%er or pulic polic.
&n t(e case at ar, t(e c(arter part et=een t(e petitioner an% private respon%ent stipulate% t(at t(e Ho=ners s(all not e responsile for loss, split, s(ort lan%in*, rea;a*es an% an ;in% of %ama*es to t(e car*oI. (is stipulation is %eeme% vali% as it is un%ispute% t(at private respon%ent acte% as a private carrier in transportin* petitionerJs lauan lo*s. (us, Article 17+ an% ot(er Civil Co%e provisions on common carriers =(ic( =ere cite% t(e petitioner ma not e applie% unless e@pressl stipulate% t(e parties in t(eir c(arter part. (e petition is %enie% t(e Court.
?O&IDO !s. CO*RT OF APPEA(+ FactsB Spouses ito an% en umo an% t(eir minor c(il%ren oar%e% a )oi%o iner us at Suri*ao%el Sur. alon* $icop oa%, A*usan %el Sur, t(e left front tire of t(e us e@plo%e%. (e us fell into a ravine aroun% t(e t(ree feet from t(e roa% an% struc; a tree. (e inci%ent resulte% in t(e %eat( if ito umo an% p(sical in:uries to ot(er passen*ers. en file% a case of reac( of contract of carria*e a*ainst petitioners. (e o=ners of )oi%o iner 9us. Alerto an% Cresencio )oi%o raise% t(e affirmative %efense of caso fortuito. (e claime% t(at t(e us =as not full as t(ere =ere onl 32 passen*ers out of t(e 2 seatin* capacit. (e also claime% t(at t(e us =as runnin* as spee% pr H6/ to +/I an% t(at t(e tire =as ran%ne=. espon%ents on t(e ot(er (an%, asserte% t(e violation of t(e contract of carria*e =as rou*(t aout t(e %riverJs failure to e@ercise t(e %ili*ence reuire% of t(e carrier. en claime% t(at t(e =as runnin* fast in a =in%in* roa% =(ic( =as not cemente% an% =as =et ecause of t(e rain.
IssueB B(et(er or not t(e tire lo= out is consi%ere% a fortuitous event =(ic( =oul% e@empt petitioners from liailit.
Ge$dB
(e tire lo= out is not consi%ere% as a fortuitous event =(ic( =oul% e@empt petitioners from
liailit. Article 17+6 of t(e Civil Co%e provi%es t(at, Hin case of %eat( or in:uries to passen*ers, common carriers are presume% to (ave een at fault or to (ave acte% ne*li*entl unless t(e prove t(at t(e oserve% e@traor%inar %ili*ence as prescrie% in Articles 1733 an% 17++.I 'urt(er, Article 17++ provi%es t(at Ha common carrier is oun% to carr t(e passen*ers safel as far as (uman care an% foresi*(t can provi%e usin* t(e utmost %ili*ence of ver cautious persons =it( %ue re*ar% for all circumstances..I &n t(e case at ar, t(e e@plosion of t(e ne= tire ma not e consi%ere% a fortuitous event. (ere are (uman factors involve% in t(e situation. (e fact t(at t(e tire =as ne= %i% not impl t(at it =as entirel free from manufacturin* %efects or t(at it =as properl mounte% on t(e ve(icle. Neit(er ma t(e fact t(at t(e tire ou*(t an% use% in t(e ve(icle is of a ran% name note% for ualit, resultin* in t(e conclusion t(at it coul% not e@plo%e =it(in five %as use. 9e t(at as it ma, it is settle% t(at an acci%ent cause% eit(er %efects in t(e automoile or t(rou*( t(e ne*li*ence of its %river is not a case fortuit t(at =oul% e@empt t(e carrier from liailit for %ama*es. 4oreover, a common carrier ma not e asolve% from liailit in case of force ma:eure or fortuitous event alone. (e common carrier must still prove t(at it =as not ne*li*ent in causin* t(e %eat( or in:ur resultin* from an acci%ent. (us, (avin* faile% to %isc(ar*e its %ut to overt(ro= t(e presumption of ne*li*ence =it( clear an% convincin* evi%ence, petitioners are (ere (el% liale for %ama*es. (e Court rule% t(at t(e Decision of t(e Court of Appeals is (ere affirme%.
COMPANIA MARITIMA !s. IN+*RANCE CO. OF NORTG AMERICA
FactsB 4acleo% an% Co. contracte%, first telep(one an% later confirme% a formal =ritten oo;in* issue% 4acleo% an% Co. t(e services of t(e petitioner Campania 4aritime for t(e s(ipment of ales of (emp from Davao to 4anila. =o li*(ters of t(e petitioner loa%e% sai% car*o from 4acleo%Js =(arf at Davao a=aitin* t(e arrival of anot(er vessel of t(e petitioner for loa%in*. ?ne of t(e li*(ters sun; =(ic( 4acleo% suffere% %ama*e $+, /18.++. $etitioner %enie% t(e liailit on t(e *roun%s t(at t(ere =as no ill of la%in* issue% t(ere resultin* to t(e none@istence of carria*e contract, t(at t(e sin;in* =as %ue to a fortuitous event an% t(at t(e respon%ent (as no personalit.
IssueB B(et(er or not t(ere is a perfecte% contract of carria*e. Ge$dB
(ere =as a complete contract of carria*e t(e consummation of =(ic( (as alrea% e*un =(en t(e s(ipper %elivere% t(e car*o to t(e carrier an% t(e latter too; possession of t(e same placin* it on a li*(ter manne% its aut(orize% emploees, un%er =(ic( 4acleo% ecame entitle% to t(e privile*e secure% to (im la=. (e responsiilit of t(e carrier commence% on t(e actual %eliver to, or receipt , t(e carrier or its aut(orize% a*ent, of t(e *oo%s. (e ar*es or li*(ters =ere merel emploe% as t(e first step of t(e voa*e. As to t(e issuance of a ill of la%in*, alt(ou*( Art. 3+/ of t(e Co%e of Commerce provi%es t(at t(e s(ipper as =ell as t(e carrier ma mutuall %eman% t(at a ill of la%in* e issue%, it is not in%ispensale. As re*ar%s to t(e form of t(e contract of carria*e, it can e sai% t(at provi%e% t(ere is a meetin* of t(e min%s an% from suc( meetin* arise ri*(ts an% oli*ations, t(ere s(oul% e no limitations as to form. A ill of la%in* is not essential to t(e contract, alt(ou*( it ma ecome oli*ator reason of t(e re*ulations or as a con%ition impose% in t(e contract t(e a*reement of t(e parties t(emselves. (e Co%e of Commerce %oes not %eman% as a necessar reuisite in t(e contract of transportation, t(e %eliver of a ill of la%in* to t(e s(ipper, ut *ives t(e ri*(t to ot( t(e s(ipper an% carrier to mutuall %eman% of eac( ot(er t(e %eliver of t(e sai% ill. 5u%*ment a*ainst petitioner is affirme%.
(* DO !s. &INAMIRA FactsB Delta Compan of Ne= )or; s(ippe% si@ cases of films an% p(oto*rap(ic supplies to 9inamira. (e s(ip arrive% in Ceu an% %isc(ar*e% (er car*o, placin* it in t(e custo% of t(e arrastre operator appointe% t(e 9ureau of Customs. (e car*o =as c(ec;e% ot( t(e steve%orin* compan an% t(e arrastre operator an% =as foun% in *oo% or%er. ?n t(e contract of carria*e, (o=ever, it =as stipulate% t(at t(e carrier in no lon*er liale for t(e car*o upon its %eliver to t(e (an%s of t(e customs aut(orities. (e car*o =as later %elivere% to 9inamira an% a marine surveor foun% t(at some =ere missin* value% at $32.63. o=er Court (el% t(at t(e carrier liale.
IssueB B(et(er or not t(e stipulations limitin* t(e liailit of t(e carrier is vali%. Ge$dB
B(ile %eliver of t(e car*o to t(e customs aut(orities is not %eliver to t(e consi*nee of t(e person =(o (as t(e ri*(t to receive t(em as contemplate% in Article 1736 of t(e Civil Co%e ecause in suc( case t(e *oo%s are still in t(e (an%s of t(e *overnment an% t(e o=ner cannot e e@ercise %ominion over t(em, (o=ever, t(e parties ma a*ree to limit t(e liailit of t(e carrier consi%erin* t(at t(e *oo%s (ave still to *o t(rou*( t(e inspection of t(e customs aut(orities efore t(e are actull turne% over to t(e consi*nee. (ese stipulations limitin* liailit is not contrar to morals or pulic polic. (is is a situation =(ere t(e carrier loses control of t(e *oo%s ecause of a custom re*ulation an% it is unfair t(at it e ma%e responsile for an loss or %ama*e t(at ma e cause% to t(e *oo%s %urin* t(e interre*num.
5u%*ment reverse%.
AMERICAN PRE+IDENT (INE+ (TD. !s. CA FactsB American $resi%ent ines !A$# vessel $resi%ent Bas(in*ton!Carrier for s(ort# receive an% loa%e% on oar% at os An*eles, California, t(e su:ect of t(e s(ipment of one !1# unit of Sumersile 5oc; $ump, containe% in !3# o@es, complete an% in *oo% or%er con%ition, covere% Commercial &nvoice No. 6/2"+6, an% $ac;in* ist. &t =as for transport to 4anila in favor or in%ale Development Corporation, t(e consi*nee. (e CA&, t(ru 'or=ar%ers Direct Container ines, &nc., issue% its clean 9ill of a%in* No. C0&4N 12/. (e s(ipment =as insure% 'G &ns. Corp. for $81, 82.2 (e %efen%ant CA& transs(ippe% t(e s(ipment in 0on*;on* on oar% t(e vessel 4S P$artasJ, =(ic( arrive% at t(e $ort of 4anila, on Septemer 6, 1"87. ?n t(e same %ate, t(e s(ipment =as %isc(ar*e% an% turne% over to 4arina $ort Services, &nc.!Arrastre/, =it( one o@ in a% or%er con%ition, s(o=in* si*ns of (avin* een previousl tampere%E (ence, covere% a urn over Surve Car*oes No. A/88+1. (e car*o remaine% =it( t(e AAS for ten %as until it =as =it(%ra=n on April 16, 1"87 t(e %efen%ant ro;er =(ic( %elivere% t(e same to t(e consi*nee, aforementione%, at its =are(ouse, =(ere t(e sai% s(ipment =as e@amine% an% inventorie%, an% t(e one o@ %isc(ar*e% from t(e CA&Js vessel in a% or%er con%ition, =as foun% s(ort of one piece =aster cone an% one piece 4ain elief value%, per invoice, at $28, 28.+8. $rivate respon%ent 'G &ns. Corp. file% a complaint for recover of a sum of mone a*ainst A$, 4arina $ort Services, &nc., an% C4 9ro;era*e Co., &nc. (e trial court foun% in favor of private respon%ent an% or%ere% A$ to pa private respon%ent t(e amount of $28, 28.+8. &n actual %ama*es,
IssueB B(at la= is applicale t(e Civil Co%e provisions or C?GSAO Ge$dB (e Civil Co%e. Bit( re*ar% to t(e contention of t(e carrier t(at C?GSA s(oul% control in t(is case, t(e same is of no moment. Art. 1763 of t(e Ne= Civil Co%e provi%es t(at Ht(e la=s of t(e countr to =(ic( t(e *oo%s are transporte% s(all *overn t(e liailit of t(e common carrier in case of loss, %estruction an% %eterioration.I (is means t(at t(e la= of t(e $(ilippines on t(e Ne= Civil Co%e. n%er 1766 of NCC, Hin all matter not re*ulate% t(is Co%e, t(e ri*(ts an% oli*ations of common carriers s(all e *overne% t(e Co%e of Commerce an% Special a=s.I Art. 17361738, NCC *overns sai% ri*(ts an% oli*ations. (erefore, alt(ou*( Sec !+# of C?GSA states t(at t(e carrier s(all not e liale in an amount e@cee%in* M+// per pac;a*e unless t(e value of t(e *oo%s (a% een %eclare% t(e s(ipper an% asserte% in t(e ill of la%in*, sai% section is merel supplementar to t(e provisions of t(e Ne= Civil Co%e.
+ER,ANDO !s. PGI(IPPINE +TEAM NA,I#ATION CO. FactsB Clara ) 9ico an% Amparo Servan%o loa%e% on oar% t(e $(ilippine Steam Navi*ation vessel, 'S 176, for carria*e from 4anila to $ulupun%an, Ne*ros ?cci%ental, car*oes of rice an% colore% paper as evi%ence% t(e correspon%in* ills of la%in* issue% t(e carrier. pon arrival of t(e vessel at $ulupan%an in t(e mornin* of Novemer 18, 1"63, t(e car*oes =ere %isc(ar*e%, complete an% in *oo% or%er, unto t(e =are(ouse of t(e 9ureau of Customs. Aout 2L// p.m. of t(e same %a, sai% =are(ouse =as raze% a fire of un;no=n ori*in, %estroin* Servan%oJs car*oes.
IssueB B(et(er or not t(e stipulations in t(e ill of la%in* limitin* t(e liailit of carrier is vali%.
Ge$dB
(e court a uo (el% t(at t(e %eliver of t(e s(ipment on uestion to t(e =are(ouse of t(e 9ureau of Customs is not t(e %eliver contemplate% Article 1736E an% since t(e urnin* of t(e =are(ouse occurre% efore actual or constructive %eliver of t(e *oo%s to t(e appellees, t(e loss is c(ar*eale a*ainst t(e appellant. 0o=ever, t(at in t(e ills of la%in* issue% for t(e car*oes in uestion, parties a*ree% to limit t(e responsiilit of t(e carrier for t(e loss or %ama*e t(at ma e cause% to t(e s(ipment insertin* t(erein t(e follo=in* stipulation. HClause 1. Carrier s(all not e responsile for loss or %ama*e to s(ipments ille% Ho=nerJs ris;I unless suc( %ama*e is %ue to ne*li*ence of carrier. Nor s(all carrier e responsile for loss or %ama*e cause force ma:eure, %an*ers or acci%ents of t(e sea or ot(er =atersE =arE pulic enemies, @@@ fire @@@.I Be sustain t(e vali%it of t(e aove stipulationE t(ere is not(in* t(erein t(at is contrar to la=, morals or pulic polic. Appellees =oul% conten% t(at t(e aove stipulation %oes not in% t(em ecause it =as printe% in fine letters on t(e ac; of t(e ills of la%in*E an% t(at t(e %i% not si*n t(e same. (is ar*ument overloo;s t(e pronouncement of t(is Court in ?n* )iu vs. Court of Appeals. HB(ile it ma e true t(at petitioner (a% not si*ne% t(e plane tic;et, (e is nevert(eless oun% t(e provisions t(ereof. Suc( provisions (ave een (el% to e part of t(e contract of carria*e an% vali% an% in%in* upon t(e passen*er re*ar%less of t(e latterJs lac; of ;no=le%*e or assent to t(e re*ulation.I (ere is not(in* in t(e recor% to s(o= t(at appellant carrier in %ela in t(e performance of its oli*ation nor t(at =as t(e cause of t(e fire t(at ro;e out in t(e CustomJs =are(ouse in an=a attriutale to t(e ne*li*ence of t(e appellant or its emploees.
#ANLON !s. CO*RT OF APPEA(+ FactsB Gelacio umamin* contracte% t(e services of 4auro 9. Ganzon to (aul 3/+ tons of scrap iron from 4ariveles, 9ataan, to t(e port of 4anila on oar% t(e li*(ter C H9atman.I Ganzon t(en sent (is li*(ter H9atmanI to 4ariveles =(ere it %oc;e%. ?n Decemer 1, 1"+6, Gelacio umamin* %elivere% t(e scrap iron to %efen%ant 'ilomeno NizaE captain of t(e li*(ter, for loa%in* =(ic( =as actuall e*an on t(e same %ate t(e cre= of t(e li*(ter. B(en aout of t(e scrap of t(e scrap iron =as alrea% loa%e%, 4aor A%vincula of 4ariveles, 9ataan, arrive% an% %eman%e% $+, ///.// from umamin*. (e latter resiste% t(e s(a;e%o=n an% after a (eate% ar*ument, 4aor A%vincula %re= (is *un an% fire% at umamin*. (e *uns(ot =as not fatal ut umamin* (a% to e ta;en to a (ospital in 9alan*a, 9ataan, for treatment. After some time, t(e loa%in* of t(e scrap iron =as resume%. 9ut on Decemer , 1"+6, Actin* 4aor 9asillo u, accompanie% t(e t(ree policemen, or%ere% Captain 'ilomeno Niza an% (is cre= to %ump t(e scrap iron =(ere t(e li*(ter =as %oc;e%. (e rest =as rou*t( to t(e compoun% of NASSC?. Actin* 4aor u issue% a receipt statin* t(at t(e 4unicipalit of 4ariveles (a% ta;en custo% of t(e scrap iron.
IssueB B(et(er or not t(e scrap iron =ere alrea% %elivere%. Ge$dB
$etitioner Ganzon insists t(at t(e scrap iron (a% not een uncon%itionall place% un%er (is custo% an% control to ma;e (im liale. 0o=ever, (e completel a*rees =it( t(e respon%ent CourtJs fin%in* t(at on Decemer 1, 1"+6, t(e private respon%ent %elivere% t(e scraps to Captain Niza for loa%in* in t(e li*(ter H9atman.I (at t(e petitioner, t(ru (is emploees, actuall receive% t(e scraps is freel a%mitte%. 9 t(e sai% act of %eliver, t(e scraps =ere uncon%itionall place% in t(e possession an% control of t(e common carrier an% upon t(eir receipt t(e carrier for transportation, t(e contract of carria*e =as
%eeme% perfecte%. Conseuentl, t(e petitionercarrierJs e@traor%ina responsiilit for t(e loss, %estruction, or %eterioration of t(e *oo%s commence%. $ursuant to Art. 1738, suc( e@traor%inar responsiilit =oul% cease onl upon t(e %eliver, actual or constructive, t(e carrier to t(e consi*nee, or to t(e person =(o (as a ri*(t to receive t(em. (e fact t(at part of t(e s(ipment (a% not een loa%e% on oar% t(e li*(ter %i% not impair t(e sai% contract of transportation as t(e *oo%s remaine% in t(e custo% an% control of t(e carrier, aleit unloa%e%.
+A(*DO R. !s. CO*RT OF APPEA(+ FactsB After t(e %eat( of plaintiffJs mot(er, Crispina Salu%o, $omiers;i an% Son 'uneral 0ome of C(ica*o rou*(t t(e remains to Continental 4ortuar Air Services =(ic( oo;e% t(e s(ipment of t(e remains from C(ica*o to San 'rancisco BA an% from San 'rancisco to 4anila =it( $A. (e remains =ere ta;en to t(e C(ica*o Airport, ut it turne% out t(at t(ere =ere t=o o%ies in t(e sai% airport. Some(o= t(e t=o o%ies =ere s=itc(e%E t(e cas;et earin* t(e remains of plaintiffJs mot(er =as mista;enl sent to 4e@ico an% =as opene% t(ere. (e s(ipment =as imme%iatel loa%e% on $A fli*(t an% arrive% on 4anila a %a after it e@pecte% arrival on ?ctoer 2", 1"76. $laintiff file% a %ama*e suit =it( C'& of ete, conten%in* t(at rans Borl% Airlines an% $A =ere liale for miss(ipment, t(e eventual %ela on t(e %eliver of t(e car*o containin* t(e remains, an% of t(e %iscourtes of its emploees to t(em. (e court asolve t(e t=o airline companies of an liailit. (e CA affirme% suc( %ecision.
IssueB B(et(er or not t(e carrier is liale for %ama*es. Ge$dB
(e recor%s reveal t(at petitioners, particularl 4aria an% Saturnino Salu%o, a*onise% for nearl five (ours, over t(e possiilit of losin* t(eir mot(erJs mortal remains, unatten%e% to an% =it(out an assurance from t(e emploees of BA t(at t(e =ere %oin* ant(in* aout t(e situation. (e =ere entitle% to t(e un%erstan%in* an% (umane consi%eration calle% of an% commensurate =it( t(e e@traor%inar %ili*ence reuire% for common carriers, an% not t(e col% insensitivit to t(eir pre%icament. Common sense coul% an% s(oul% (ave %ictate% t(at t(e e@ert a little effort in ma;in* a more e@tensive inuir t(emselves or t(rou*( t(eir superiors, rat(er t(an :ust s(ru* off t(e prolem =it( a callous an% uncarin* remar; t(at t(e (a% no ;no=le%*e aout it. Bit( all t(e mo%ern communications euipment rea%il availale to t(em, it coul% (ave easil facilitate% sai% inuir. BAJs apat(etic stance =(ile not le*all repre(ensile is morall %eplorale. osin* a love% one, especiall oneJs parent, is a painful e@perience. ?ur culture accor%s utmost ten%erness (uman feelin*s to=ar% an% in reverence to t(e %ea%. (at t(e remains of t(e %ecease% =ere suseuentl %elivere%, aleit, elate%l an% eventuall lai% in (er final restin* place is of little consolation. (e imperviousness %isplae% BAJs personnel, even for :ust t(at fraction of time, =as especiall con%emnale particularl in t(e (ours of ereavement of t(e famil of Crispina Salu%o, intensifie% an*uis( %ue to t(e uncertaint of t(e =(ereaouts of t(eir mot(erJs remains. BAJs personnel =ere remiss in t(e oservance of t(at *enuine (uman concern an% professional attentiveness reuire% an% e@pecte% of t(em. (e fore*oin* oservations, (o=ever, %o not appear to e applicale to respon%ent $A. No attriution of %iscourtes or in%ifference (as een ma%e a*ainst $A petitioners an%, in fact, petitioner 4aria Salu%o testifie% t(at it =as to $A t(e repaire% after failin* to receive proper attention from BA. &t =as from $A t(at t(e receive% confirmation t(at t(eir mot(erJs remains =oul% e on t(e same fli*(t =it( t(em.
$etitionerJs ri*(t to e treate% =it( %ue courtes in accor%ance =it( t(e %e*ree of %ili*ence reuire% la= to e e@ercise% ever common carrier =as violate% t(e BA an% t(is entitles t(em, atleast to nominal %ama*es from BA alone. Articles 2221 an% 2222 of t(e Civil Co%e ma;e it clear t(at nominal %ama*es are not inten%e% for in%emnification of loss suffere% ut for t(e vin%ication or reco*nition of a ri*(t violate% or inva%e%. (e are recoverale =(ere some in:ur (as een %one ut t(e amount of =(ic( t(e evi%ence fails to s(o=, t(e assessment of %ama*es ein* left to t(e %iscretion of t(e court accor%in* to t(e circumstances of t(e case.
MACAM !s. CO*RT OF APPEA(+ FactsB $etitioner 9enito 4acam s(ippe% on oar% t(e vessel Nen 5ian*, t(rou*( local a*ent respon%ent Ballem $(ilippines S(ippin*, &nc. =atermelons value% at SM+,"+/.// an% fres( man*oes value% at SM1,273.6. (e s(ipment =as oun% for 0on*;on* =it( $a;istan 9an; as consi*nee an% Great $rospect Compan of o=loon, 0on*;on* as notif part. $etitionerJs %epositor an;. Consoli%ate% 9an;in* Corporation!S?&D9AN# pai% petitioner in a%vance t(e total value of t(e s(ipment of SM2/,223.6. pon arrival in 0on*;on*, t(e s(ipment =as %elivere% respon%ent BA4 %irectl to G$C, not to $a;istan 9an;, an% =it(out t(e reuire% ill of la%in* (avin* een surren%ere%. Suseuentl, G$C faile% to pa $a;istan 9an; suc( t(at t(e latter, still in possession of t(e ori*inal ills of la%in*, refuse% to pa petitioner t(rou*( S?&D9AN. Since S?&D9AN alrea% prepai% petitioner t(e value of t(e s(ipment, it %eman%e% pament from respon%ent BA4 ut =as refuse%. $etitioner returne% t(e amount involve% to S?&D9AN, an% t(en %eman%e% pament from respon%ent BA4 in =ritin* ut to no avail. 0ence petitioner sou*(t collection of t(e value of t(e s(ipment if SM2/,223.6 from respon%ents efore t(e C of 4anila, ases on %eliver of t(e s(ipment to G$C =it(out presentation of t(e ills of la%in* an% an; *uarantee.
IssueB B(et(er or not respon%ents are liale to petitioner for releasin* t(e *oo%s to G$C =it(out t(e ills of la%in* or an; *uaranteeO
Ge$dB
n%er Art. 1736 of t(e Civil Co%e, t(e e@traor%inar responsiilit of t(e common carrier lasts until actual or constructive %eliver of t(e car*oes to t(e consi*nee or to t(e person =(o (as a ri*(t to receive t(em. $A&SAN 9AN =as in%icate% in t(e ills of la%in* as consi*nee =(ereas G$C =as notifin* part. 0o=ever, in t(e e@port invoices G$C =as clearl name% as uerFimporter. $etitioner also referre% to G$C as suc( in (is %eman% letter to respon%ent BA4 an% in (is complaint efore t(e trial court. (is premise %ra=s us to conclu%e t(at t(e %eliver of t(e car*oes to G$C as uerFimporter =(ic(, conformal =it( Art. 1736 (a%, ot(er t(an t(e consi*nee, t(e ri*(t to receive t(em =as proper. (e real issue is =(et(er respon%ents are liale to petitioner for releasin* t(e *oo%s to G$C =it(out t(e ills of la%in* or an; *uarantee. 'rom t(e testimon of petitioner, =e *at(er t(at (e (as een transactin* =it( G$C as uerFimporter for aroun% 2 to 3 ears alrea%. B(en man*oes an% =atermelons are in season, (is s(ipment to G$C usin* t(e facilities of respon%ents is t=ice or t(rice a =ee;. (e *oo%s are release% to G$C. &t (as een t(e practice of petitioner to reuest t(e s(ippin* lines to imme%iatel release peris(ale car*oes suc( as =atermelons an% fres( man*oes t(rou*( telep(one calls (imself or (is Hpeople.I &n transactions covere% a letter of cre%it, an; *uarantee is normall reuire% t(e s(ippin* lines prior to releasin* t(e *oo%s. 9ut for uers usin* tele*rap(ic transfers, petitioner %ispenses =it( t(e an; *uarantee ecause t(e *oo%s are alrea% full pai%. &n (is several ears of usiness relations(ip =it( G$C
an% respon%ents, t(ere =as not a sin*le instance =(en t(e ill of la%in* =as first presente% efore t(e release of t(e car*oes.
MAER+8 (INE !s. CO*RT OF APPEA(+ FactsB $rivate respon%ent!consi*nee# or%ere% from li ill. &nc.!s(ipper# 6//,/// empt *elatin capsules for t(e manufacture of (is p(armaceutical pro%ucts. (e 4emoran%um of S(ipment provi%es t(at t(e s(ipper a%vise% t(e consi*nee t(at t(e *oo%s =ere alrea% s(ippe% on oar% t(e vessel of petitioner for s(ipment to t(e $(ilippines via ?a;lan%, California. (e specifie% %ate of arrival =as April 3, 1"77. 'or reasons un;no=n, sai% car*o of capsules =ere mis(ippe% an% %iverte% to ic(mon%,
IssueB B(et(er or not respon%ent is entitle% to %ama*es resultin* from %ela in t(e %eliver of t(e s(ipment in t(e asence in t(e ill of la%in* of a stipulation on t(e perio% of %eliver.
Ge$dB )es. B(ile it is true t(at common carriers are not oli*ate% la= to carr an% to %eliver merc(an%ise, an% persons are not veste% =it( t(e ri*(t to prompt %eliver, unless suc( common carriers previousl assume t(e oli*ation to %eliver at a *iven %ate or time, %eliver of s(ipment or car*o s(oul% at least e ma%e =it(in a reasonale time. An e@amination of t(e su:ect ill of la%in* s(o=s t(at t(e su:ect s(ipment =as estimate% to arrive in 4anila on April 3, 1"77. B(ile t(ere =as no special contract entere% into t(e parties in%icatin* t(e %ate of arrival of t(e su:ect s(ipment, petitioner nevert(eless, =as ver =ell a=are of t(e specific %ate =(en t(e *oo%s =ere e@pecte% to arrive as in%icate% in t(e ill of la%in* itself. &n t(is re*ar%, t(ere arises no nee% to e@ecute anot(er contract for t(e purpose as it =oul% e a mere superfluit. &n t(e case efore us, =e fin% t(at a %ela in t(e %eliver of t(e *oo%s spannin* a perio% of t=o mont(s an% seven %as falls =as eon% t(e realm of reasonaleness. Bit( respect to t(e rulin* t(at contracts of a%(esion are voi%, SC sai% t(at it =as necessaril so an% t(at it is a settle% rule t(at ills of la%in* are contracts not entirel pro(iite%.
?+MAE( !s. &ARRETTO FactsB)smael, a %omestic corporation see;s to recover from 9arretto $","/, =(ic( is t(e alle*e% value of four cases of merc(an%ise =(ic( it %elivere% to t(e steams(ip An%res, at 4anila to e s(ippe% to Suri*ao. (e sai% merc(an%ise =as never %elivere% to t(e consi*nee Solomon S(aruff. 9arretto %enie% all t(e alle*ations a*ainst (im statin* t(at t(e sai% merc(an%ise =as never %elivere% to (im. 0e also state% t(at un%er t(e provision of para*rap( 7 of t(e printe% con%ition at t(e ac; of t(e ill of la%in*, plaintiffJs ri*(t of action is arre% for t(e reason t(at it =as not rou*(t =it(in 6/ %as from t(e time t(e cause of action accrue%. 9arretto also alle*e% t(at in provision 12 of t(e ill of la%in*, (e is not liale for t(e e@cess of
$3//.// for an pac;a*e of sil; unless t(e value an% contents of suc( pac;a*e are correctl %eclare% in t(e ill of la%in* at t(e time of s(ipment. (e lo=er court ren%ere% its :u%*ment in favor of )smael > co.
IssueB B(et(er or not t(e stipulation in t(e ill of la%in* limitin* t(e liailit of %efen%ant of not more t(an $3// is vali%.
Ge$dB No, t(e stipulation is not vali%. A common carrier cannot la=full stipulate for e@emption from liailit, unless suc( e@emption is :ust an%reasonale an% t(e contract is freel an% fairl ma%e. A common carrier cannot la=full stipulate for t(e e@emption from liailit, unless suc( e@emption is :ust an% reasonale. (e carrier cannot limit its liailit for in:ur to or loss of *oo%s s(ippe% if suc( =as cause% its o=n ne*li*ence. 9ase% upon t(e fin%in*s of fact of t(e trial court =(ic( are sustaine% t(e evi%ence, t(e plaintiff %elivere% to t(e %efen%ants 16 cases of sil; consi*ne% an% to e %elivere% t(e %efen%ants to Salomon S(aruff in Suri*ao. 'our of suc( cases =ere never %elivere% to t(e consi*nee, an% t(e evi%ence s(o=s t(at t(eir value is t(e alle*e% in t(e complaint. Also, t(e *oo%s in uestion =ere s(ippe% from 4anila on ?ctoer 2+, 1"22, to e %elivere% to Salomon S(aruff in Suri*ao, $laintiffKs ori*inal complaint =as file% on April 17, 1"23, or a little less t(an si@ mont(s after t(e s(ipment =as ma%e. (e lo=er court also points out t(at t(e con%itions in uestion are not printe% on t(e triplicate copies =(ic( =ere %elivere% to t(e plaintiff, an% t(at reason t(ereof t(e are not in%in* upon t(e plaintiff. (e clause in uestion provi%es t(at t(e carrier s(all not e liale for loss or %ama*e from an cause or for an reason to an amount in e@cess of $3// for an sin*le pac;a*e of sil; or ot(er valuale car*o. (e evi%ence s(o=s t(at 16 cases =ere s(ippe%, an% t(at t(e value of eac( case =as ver near $2,+//. &n t(is situation, t(e limit of %efen%antsK liailit for eac( case of sil; for loss or %ama*e from an cause or for an reason =oul% put it in t(e po=er of t(e %efen%ants to (ave ta;en t(e =(ole car*o of 16 cases of sil; at a valuation of $3// for eac( case, or less t(an oneei*(t of its actual value. &f t(at rule of la= s(oul% e sustaine%, no sil; =oul% ever e s(ippe% from one islan% to anot(er in t(e $(ilippines. Suc( a limitation of value is unconscionale an% voi% as a*ainst pulic polic. (ere is no merit in t(e appeal. (e :u%*ment of t(e lo=er court is affirme%.
+GEJARAM !s. PGI(IPPINE AIR (INE+ INC. FactsB S(e=aram, a pain* passen*er on %efen%antKs aircraft fli*(t from Qamoan*a Cit oun% for 4anila. 0e c(ec;e% in t(ree pieces of a**a*es, a suitcase an% t=o ot(er pieces. B(en plaintiff $armanan% S(e=aram arrive% in 4anila, (is suitcase %i% not arrive =it( (is fli*(t ecause it =as sent to &li*an. &t =as foun% out t(at it =as mista**e% %efen%antJs personnel. (e station a*ent of t(e $A in &li*an cause% t(e a**a*e to e sent to 4anila for %eliver to plaintiff. Defen%ant a%mitte% t(at t(e t=o items !ransistor a%io an% t(e ollfle@ Camera# coul% not e foun% insi%e t(e suitcase. An action for %ama*es =as institute% a*ainst $A. C rule% t(at t(e loss of t(e articles =as %ue to t(e ne*li*ence of t(e emploees of $A. $A (o=ever =as or%ere% to pa %ama*es of $1//.// onl, as t(is =as its limite% liailit as state% in t(e tic;et. !H(e liailit, if an, for loss or %ama*e to c(ec;e% a**a*e or for %ela in t(e %eliver t(ereof is limite% to its value an%, unless t(e passen*er %eclares in a%vance a (i*(er valuation an% pa an a%%itional c(ar*e t(erefor, t(e value s(all e conclusivel %eeme% not to e@cee% $1//.// for eac( tic;et.I#. An appeal =as t(en rou*(t up plaintiff.
IssueB B(et(er or not t(e limite% liailit rule applies. Ge$dB No. (e limite% liailit rule s(all not appl. (e reuirements provi%e% in Article 17+/ of t(e Ne= Civil Co%e must e complie% =it( efore a common carrier can claim a limitation of its pecuniar liailit in case of loss, %estruction or %eterioration of t(e *oo%s it (as un%erta;en to transport. &n t(e case efore us Be
elieve t(at t(e reuirements of sai% article (ave not een met. &t can not e sai% t(at t(e appellee (a% actuall entere% into a contract =it( t(e appellant, emo%in* t(e con%itions as printe% at t(e ac; of t(e tic;et. (e fact t(at t(ose con%itions are printe% at t(e ac; of t(e tic;et stu in letters so small t(at t(e are (ar% to rea% =oul% not =arrant t(e presumption t(at t(e appellee =as a=are of t(ose con%itions suc( t(at (e (a% fairl an% freel a*ree% to t(ose con%itions. S(e=aram %i% not a*ree to t(e stipulation on t(e tic;et, as manifeste% t(e fact t(at S(e=aram %i% not si*n t(e tic;et.
ON# ?I* !s. CO*RT OF APPEA(+ FactsB $etitioner =as pain* passen*er of respon%ent $(ilippine Airlines on oar% fli*(t No. "6 from 4actan Ceu oun% for 9utuan Cit. 0e =as sc(e%ule% to atten% t(e trial in t(e Court of 'irst instance , 9r. && t(ereat. As a passen*er, (e c(ec;e% in one piece of lu**a*e, a ull maleta. (e plane left 4actan Airport, Ceu Cit at aout 1pm an% arrive% at 9acasi Airport, 9utuan Cit at past 2pm of t(e same %a. pon arrival, petitioner claime% (is lu**a*e ut it coul% not e foun%. Accor%in* to petitioner, it =as onl after reactin* in%i*nantl to t(e loss t(at t(e matter =as atten%e% t(e porter cler; =(ic( (o=ever, t(e later %enie%. B(en t(e lu**a*e =as %elivere% to t(e petitioner =it( t(e information t(at t(e loc; =as open, (e foun% out t(at t(e fol%er containin* %ocuments an% transcripts =ere missin*, asi%e from t(e t=o *ift items for (is parentsinla=. $etitioner refuse% to accept t(e lu**a*e. $etitioner file% a Complaint a*ainst $A for %ama*es for reac( of contract of transportation. (e lo=er Court foun% $A to (ave acte% in a% fait( an% =it( malice an% %eclare% petitioner entitle% to moral %ama*es. CA (el% t(at $A =as *uilt onl of simple ne*li*ence, reverse% t(e :u%*ment of t(e trial Court *rantin* petitioner moral an% e@emplar %ama*es, ut or%ere% $A to pa plaintiff t(e sum of $1//.//, t(e a**a*e liailit assume% it un%er t(e con%ition of carria*e printe% at t(e ac; of t(e tic;et. 0ence t(e present petition.
IssueB B(et(er or not $A acte% =it( *ross ne*li*ence. Ge$dB No. $A %i% not act in a% fait(. &t =as t(e %ut of $A to loo; for petitionerJs lu**a*e =(ic( (a% een miscarrie%. $A e@erte% %ili*ent efforts to locate t(e plaintiffJs a**a*e. $etitioner is neit(er entitle% to e@emplar %ama*es. @emplar %ama*es can onl e *rante% if t(e %efen%ant as;e% in a =anton, frau%ulent, rec;less, oppressive or malevolent manner, =(ic( loss, in accor%ance =it( t(e stipulation =ritten at t(e ac; of t(e tic;et is limite% to $1// per lu**a*e plaintiff not (avin* %eclare% a *reater value an% not (avin* calle% t(e attention of t(e %efen%ant on its value a% pai% t(e tariff t(ereon. B(ile it ma e true t(at petitioner (a% not si*ne% t(e plane tic;et, (e is nevert(eless oun% t(e provisions t(ereof. Suc( provisions (ave een (el% to e a part of t(e contract of carria*e, an% vali% an% in%in* upon t(e passen*er re*ar%less of t(e latterKs lac; of ;no=le%*e or assent to t(e re*ulation. &t is =(at is ;no=n as a contract of a%(esion, in re*ar%s =(ic( it (as een sai% t(at contracts of a%(esion =(erein one part imposes a rea% ma%e form of contract on t(e ot(er, as t(e plane tic;et in t(e case at ar, are contracts not entirel pro(iite%. (e one =(o a%(eres to t(e contract is in realit free to re:ect it entirelE if (e a%(eres, (e *ives (is consent. A contract limitin* liailit upon an a*ree% valuation %oes not offen% a*ainst t(e polic of t(e la= fori%%in* one from contractin* a*ainst (is o=n ne*li*ence.
+EA(AND +ER,ICE INC. !s. IAC
FactsB Sealan%, a forei*n s(ippin* an% for=ar%in* compan license% to %o usiness in t(e $(ilippines, receive% from Seaorne ra%in* Compan in California a s(ipment consi*ne% to Sen 0iap 0in*. (e s(ipper not (avin* %eclare% t(e value of t(e s(ipment, no value =as in%icate% in t(e 9?. (e s(ipment =as %isc(ar*e% in 4anila, an% =(ile a=aitin* transs(ipment to Ceu t(e car*o =as stolen an% never recovere%. (e lo=er court sentences Sealan% to pa Cue t(e value of t(e lost car*o, t(e unrealize% profit an% attornes fees. (e CA affirme% t(e %ecision, (ence t(e petition.
IssueB B(et(er or not t(e consi*nee of seaorne frei*(t is oun% stipulations in t(e coverin* ill of la%in* limitin* to a fi@e% amount t(e liailit of t(e carrier for loss or %ama*e to t(e car*o =(ere its value is not %eclare% in t(e ill.
Ge$dB )es. (ere is no uestion of t(e ri*(t of a consi*nee in a ill of la%in* to recover from t(e carrier or s(ipper for loss of, or %ama*e to, *oo%s ein* transporte% un%er sai% ill, alt(ou*( t(at %ocument ma (ave een %ra=n up onl t(e consi*nor an% t(e carrier =it(out t(e intervention of t(e consi*nee. Since t(e liailit of a common carrier for loss of or %ama*e to *oo%s transporte% it un%er a contract of carria*e so *overne% t(e la=s of t(e countr of %estination an% t(e *oo%s in uestion =ere s(ippe% from t(e nite% States to t(e $(ilippines, t(e liailit of Seaan% (as Cue is *overne% primaril t(e Civil Co%e, an% as or%aine% t(e sai% Co%e, supplementar, in all matters not cluttere% t(ere, t(e Co%e of Commerce an% special la=s. ?ne of t(ese supplementar special la=s is t(e Carria*e of *oo%s Sea Act !C?GSA#, ma%e applicale to all contracts for t(e carria*e sea to an% from t(e $(ilippines $orts in 'orei*n ra%e Comm. Act. 6+. ven if Section !+# of C?GSA %i% not list t(e vali%it an% in%in* effect of t(e liailit limitation clause in t(e ill of la%in* (ere are full sustantial on t(e asis alone of Article 17" an% 17+/ of t(e Civil Co%e. (e :ustices of suc( stipulation is implicit in its *ivin* t(e o=ner or s(ipper t(e option of avoi%in* accrual of liailit limitation t(e simple e@pe%ient of %eclarin* t(e value of t(e s(ipment in t(e ill of la%in*. (e stipulation in t(e ill of la%in* limitin* t(e liailit of Seaan% for loss or %ama*es to t(e s(ipment covere% sai% rule to SM+// per pac;a*e unless t(e s(ipper %eclares t(e value of t(e s(ipment an% pas a%%itional c(ar*es is vali% an% in%in* on Cue.
CITADE( (INE+ INC. !s. CO*RT OF APPEA(+ FactsB $etitioner is t(e *eneral a*ent of t(e vessel HCar%i*an 9aF Strai*(t nterprisesI, =(ile private respon%ent 4anila Bine 4erc(ants, &nc. as t(e consi*nee is t(e importer of t(e su:ect s(ipment of Dun(ill ci*arettes from n*lan%. ?n or aout 4arc( 17,1"7", t(e vessel HCar%i*anI loa%e% on oar% at n*lan% for carria*e to 4anila, 18/ 'ilrate cartons of mi@e% 9ritis( manufacture% ci*arettes calle% HDun(ill &nternational 'ilterI > HDun(ill &nternational 4ent(olI, as evi%ence% a 9ill of a%in*. Clause 6 of t(e ills of la%in* issue% t(e carrier states to limit t(e latterJs liailit to SM2.// per ;ilo.(e s(ipment arrive% at t(e port of 4anila $ier 13 an% t(e container van =as receive% . azon an arrastre. (ereafter, t(e container van containin* t=o s(ipments =as strippe%. ?ne s(ipment =as %elivere% an% t(e ot(er, containin* t(e ci*arettes =ere place% in t=o containers %ue to t(e lac; of space, ot( of t(em %ul pa%loc;e% an% seale% t(e representative of t(e carrier. ?n 4a 1, 1"7", t(e carrierJs (ea%c(ec;er %iscovere% t(at one of t(e container van (a% a %ifferent pa%loc; an% t(e seale% =as tampere% =it(. &t =as foun% out t(at "/ cases of t(e ci*arettes =ere missin*. 9ase% on t(e investi*ation con%ucte% t(e arrastre, t(e car*o =as not formall turne% over t(e carrier. (e consi*nee file% a complaint a*ainst t(e carrier %eman%in* $31+,/// =(ic( is t(e mar;et value of t(e *oo%s. (e carrier a%mitte% t(e loss in its repl letter ut alle*e% t(at t(e sai% matter is un%er t(e
control of t(e arrastre t(erefore, t(e consi*nee file% a complaint a*ainst t(e arrastre. (e lo=er court %eci%e% to asolve t(e arrastre form an liailit. CA affirme% t(e %ecision of t(e lo=er court.
IssueB B(et(er or not t(e stipulation limitin* t(e liailit of t(e carrier containe% in t(e ill of la%in* is in%in* on t(e consi*nee.
Ge$dB )es, t(e stipulation is vali%. 9asic is t(e rule t(at a stipulation limitin* t(e liailit of t(e carrier to t(e value of t(e *oo%s appearin* in t(e ill of la%in*, unless t(e s(ipper or o=ner %eclares a *reater value, is in%in*. 'urt(ermore, a contract fi@in* t(e sum t(at ma e recovere% t(e o=ner or s(ipper for t(e loss, %estruction or %eterioration of t(e *oo%s is vali%, if it is reasonale an% :ust un%er t(e circumstances, an% (as een fairl an% freel a*ree% upon. &n t(is case, t(e a=ar% of $31+,/// ase% on t(e alle*e% mar;et value of t(e *oo%s is erroneous. &t is provi%e% in Clause 6 t(at its liailit is limite% to SM2.//F;ilo. (e consi*nee also a%mits in t(e memoran%um t(at t(e value of t(e *oo%s %oes not appear in t(e ill of la%in*. 0ence, t(e stipulation on t(e carrierJs limite% liailit applies. (e ill of la%in* s(o=s t(at 12/ cartons =ei*(t 2,"78 ;ilos or 2.82;ilosFcarton. Since "/ cartons =ere lost an% t(e =ei*(t of sai% cartons is 2,233.8/, t(e carrierJs liailit amounts onl to SM,67.6/. (e :u%*ment of CA is (ere mo%ifie%.
E,ERETT +TEAM+GIP CORPORATION !s. CO*RT OF APPEA(+ FactsB $rivate respon%ent 0ernan%ez ra%in* Co. importe% t(ree crates of us spare parts from 5apan from its supplier 4aruman ra%in* ase% t(ere. (e crates =ere s(ippe% from 5apan to 4anila on oar% a vessel o=ne% petitionerJs principal, verett ?rient ines. pon arrival at t(e port of 4anila, it =as %iscovere% t(at one of t(e crater =as missin*. espon%ent ma%e a formal claim for t(e recover of t(e actual value of t(e lost spare parts containe% in t(e missin* crates. (e trial court ren%ere% :u%*ment in favor of private respon%ent, or%erin* petitioner to pa )1,++2,+//.//. An appeal =as rou*(t petitioner onl 1//,/// en =as offere% petitioner, t(e ma@imum amount stipulate% in clause 18 of t(e 9?. (e Court of Appeals %elete% t(e a=ar% of attorneKs fees ut affirme% t(e trial courtKs fin%in*s =it( t(e a%%itional oservation t(at private respon%ent can not e oun% t(e terms an% con%itions of t(e ill of la%in* ecause it =as not priv to t(e contract of carria*e. $etitioner no= comes to SC ar*uin* t(at t(e Court of Appeals erre% !1# in rulin* t(at t(e consent of t(e consi*nee to t(e terms an% con%itions of t(e ill of la%in* is necessar to ma;e suc( stipulations in%in* upon itE !2# in (ol%in* t(at t(e carrierKs limite% pac;a*e liailit as stipulate% in t(e ill of la%in* %oes not appl in t(e instant caseE an% !3# in allo=in* private respon%ent to full recover t(e full alle*e% value of its lost car*o.
IssueB B(et(er or not t(e petitioner is liale for t(e actual value an% not t(e ma@imum value recoverale un%er t(e ill of la%in*.
Ge$dB No. A stipulation in t(e ill of la%in* limitin* t(e liailit of t(e common carrier for t(e loss, %ama*es of car*o to a certain sum, unless t(e s(ipper %eclares or a (i*(er value is sanctione% la=, particularl Articles 17" an% 17+/ of t(e Civil Co%e. $ursuant to t(e aforeuote% provisions of la=, it is reuire% t(at t(e stipulation limitin* t(e common carrierKs liailit for loss must e reasonale an% :ust un%er t(e circumstances, an% (as een freel an% fairl a*ree% upon. !he bill of lading sub"ect of the present controversy specifically provides, among others: %&. ll claims for which the carrier may be liable shall be ad"usted and settled on the basis of the shipper's net invoice cost plus freight and insurance premiums, if paid, and in no event shall the carrier be liable for any loss of possible profits or any conse(uential loss.
!he carrier shall not be liable for any loss of or any damage to or in any connection with, goods in an amount e)ceeding *ne +undred thousand en in -apanese Currency %//,///.//0 or its e(uivalent in any other currency per package or customary freight unit whichever is least0 unless the value of the goods higher than this amount is declared in writing by the shipper before receipt of the goods by the carrier and inserted in the 1ill of 2ading and e)tra freight is paid as re(uired. (e aove stipulations are, to our min%, reasonale an% :ust. &n t(e ill of la%in*, t(e carrier ma%e it clear t(at its liailit =oul% onl e up to ?ne 0un%re% (ousan% !)1//,///.//# )en. 0o=ever, t(e s(ipper, 4aruman ra%in*, (a% t(e option to %eclare a (i*(er valuation if t(e value of its car*o =as (i*(er t(an t(e limite% liailit of t(e carrier. Consi%erin* t(at t(e s(ipper %i% not %eclare a (i*(er valuation, it (a% itself to lame for not complin* =it( t(e stipulations. o %efeat t(e carrierKs limite% liailit, t(e aforecite% Clause 18 of t(e ill of la%in* reuires t(at t(e s(ipper s(oul% (ave %eclare% in =ritin* a (i*(er valuation of its *oo%s efore receipt t(ereof t(e carrier an% insert t(e sai% %eclaration in t(e ill of la%in*, =it( e@tra frei*(t pai%. (ese reuirements in t(e ill of la%in* =ere never complie% =it( t(e s(ipper, (ence, t(e liailit of t(e carrier un%er t(e limite% liailit clause stan%s. (e commercial &nvoice %oes not in itself sufficientl an% convincin*l s(o= t(at petitioner (as ;no=le%*e of t(e value of t(e car*o as conten%e% private respon%ent.
&RITI+G AIRJA?+ !s. CO*RT OF APPEA(+ FactsB 4a(tani otaine% t(e services of a certain 4r. Gemar to prepare (is travel plan to 9oma, &n%ia. 4r. Gemar purc(ase% a tic;et from 9ritis( Air=as, (o=ever since it (a% no tic;et fli*(ts from 4anila to 9oma, 4a(tani (a% to ta;e a connectin* fli*(t to 9oma. $rior to (is %eparture, 4a(tani c(ec;e% in t(e $A counter in 4anila (is t=o pieces of lu**a*e containin* (is clot(in* an% personal effects, confi%ent t(at upon reac(in* 0on* on*, t(e same =oul% e transferre% to t(e 9A fli*(t oun% for 9oma. nfortunatel, =(en 4a(tani arrive% in 9oma, (e %iscovere% t(at (is lu**a*e =as missin* an% t(at upon inuir from t(e 9A representatives, (e =as tol% t(at t(e same mi*(t (ave een %iverte% to on%on. After plaintiff =aite% for (is lu**a*e for one =ee;, 9A finall a%vise% (im to file a claim. 4a(tani file% (is complaint for %ama*es. 9A file% a t(ir%part complaint a*ainst $A alle*in* t(at t(e reason for t(e nontransfer of t(e lu**a*e =as %ue to t(e latterKs late arrival in 0on*;on*, t(us leavin* (ar%l an time for t(e proper transfer of 4a(taniKs lu**a*e to t(e 9A aircraft oun% for 9oma. C ren%ere% its %ecision in favor of 4a(tani, =(ic( CA affirme%, (ence t(e instant petition. 9A alle*e% t(at t(ere s(oul% (ave een no separate a=ar% for t(e lu**a*e an% t(e contents t(ereof since 4a(tani faile% to %eclare a separate (i*(er valuation for t(e lu**a*e an% t(erefore, its liailit is limite%, at most, onl to t(e amount state% in t(e tic;et.
IssueB B(et(er or not 9A is liale for t(e compensator %ama*es. Ge$dB )es. (e contract of transportation =as e@clusivel et=een 4a(tani an% 9A. (e latter merel en%orsin* t(e 4anila to 0on* on* lo* of t(e formerJs :ourne to $A, as its sucontractor or a*ent. Con%itions of contacts =as one of continuous air transportation from 4anila to 9oma. (e Court of Appeals s(oul% (ave een co*nizant of t(e =ellsettle% rule t(at an a*ent is also responsile for an ne*li*ence in t(e performance of its function an% is liale for %ama*es =(ic( t(e principal ma suffer reason of its ne*li*ent act. (e t(ir%part complaint =as t(erefore reinstate%. Since t(e instant petition =as ase% on reac( of contract of carria*e, 4a(tani can onl sue 9A an% not $A, since t(e latter =as not a part in t(e contract. (e contention of 9A =it( respect to limite% liailit =as overrule% alt(ou*( it is reco*nize% in t(e $(ilippines, statin* t(at 9A (a% =aive% t(e %efense of limite% liailit =(en it allo=e% 4a(tani to testif as to t(e actual %ama*es (e incurre% %ue to t(e misplacement of (is lu**a*e, =it(out an o:ection.
G. E. GEACOC8 COMPAN? !s. MACONDRA? H COMPAN? INC. FactsB (e plaintiff s(ippe% %monton cloc;s from Ne= )or; to 4anila on oar% a vessel of t(e %efen%ant. (e 9? (as t(e follo=in* stipulationsL %. t is mutually agreed that the value of the goods receipted for above does not e)ceed 34// per freight ton, or, in proportion for any part of a ton, unless the value be e)pressly stated herein and ad valorem freight paid thereon. 5. lso, that in the event of claims for short delivery of, or damage to, cargo being made, the carrier shall not be liable for more than the net invoice price plus freight and insurance less all charges saved, and any loss or damage for which the carrier may be liable shall be ad"usted pro rata on the said basis. (e cloc;s =ere not %elivere% %espite %eman%s. $laintiff claime% $2/.//, t(e mar;et value of t(e cloc;s, =(ile %efen%ant ten%ere% onl $76.36, t(e proportionate frei*(t ton value. (e trial court %eci%e% for t(e plaintiff for $226./2, t(e invoice value plus frei*(t an% insurance. 9ot( appeale%. (e claim of t(e plaintiff is ase% upon t(e ar*ument t(at t(e clause in t(e ill of la%in*, limitin* t(e liailit of t(e carrier, are contrar to pulic or%er an%, t(erefore, null an% voi%. (e %efen%ant, on t(e ot(er (an%, conten%s t(at clause 1 is vali%, an% clause " s(oul% (ave not een applie% t(e lo=er court.
IssueB 4a a common carrier, stipulations inserte% in t(e ill of la%in*, limit its liailit for t(e loss of or %ama*e to t(e car*o to an a*ree% valuation of t(e latterO
Ge$dB )es. (ree ;in%s of stipulations (ave often een ma%e in a ill of la%in*. (e first is one e@emptin* t(e carrier from an an% all liailit for loss or %ama*e occasione% its o=n ne*li*ence. (e secon% is one provi%in* for an unualifie% limitation of suc( liailit to an a*ree% valuation. An% t(e t(ir% is one limitin* t(e liailit of t(e carrier to an a*ree% valuation unless t(e s(ipper %eclares a (i*(er value an% pas a (i*(er rate of frei*(t. Accor%in* to an almost uniform =ei*(t of aut(orit, t(e first an% secon% ;in%s of stipulations are invali% as ein* contrar to pulic polic, ut t(e t(ir% is vali% an% enforceale. A rea%in* of clauses 1 an% " of t(e ill of la%in* (ere in uestion, (o=ever, clearl s(o=s t(at t(e present case falls =it(in t(e t(ir% stipulation, to =itL (at a clause in a ill of la%in* limitin* t(e liailit of t(e carrier to a certain amount unless t(e s(ipper %eclares a (i*(er value an% pas a (i*(er rate of frei*(t, is vali% an% enforceale. (us, if a common carrier *ives to a s(ipper t(e c(oice of t=o rates, t(e lo=er of t(e con%itione% upon (is a*reein* to a stipulate% valuation of (is propert in case of loss, even t(e carrierKs ne*li*ence, if t(e s(ipper ma;es suc( a c(oice, un%erstan%in*l an% freel, an% names (is valuation, (e cannot t(ereafter recover more t(an t(e value =(ic( (e t(us places upon (is propert. A limitation of liailit ase% upon an a*ree% value to otain a lo=er rate %oes not conflict =it( an soun% principle of pulic policE an% it is not conformale to plain principles of :ustice t(at a s(ipper ma un%erstate value in or%er to re%uce t(e rate an% t(en recover a lar*er value in case of loss.
+JEET (INE+ INC. !s. TE,E+ FactsB $rivate respon%ents Att. an%o* an% iro, a contractors ou*(t tic;ets for
t(e trip, e@pose% to t(e scorc(in* (eat of t(e sun an% t(e %ust comin* from t(e s(ipKs car*o of corn *rits, an% t(at t(e tic;ets t(e ou*(t at Ca*aan %e ?ro Cit for a*ilaran =ere not (onore% an% t(e =ere constraine% to pa for ot(er tic;ets. &n vie= t(ereof, private respon%ents sue% petitioner for %ama*es an% for reac( of contract of carria*e efore Court of 'irst &nstance of 4isamis ?riental. $etitioner move% to %ismiss t(e complaint on t(e *roun% of improper venue. (is motion =as premise% on t(e con%ition printe% at t(e ac; of t(e tic;ets, Con%ition No. 1, =(ic( rea%sL H&t is (ere a*ree% an% un%erstoo% t(at an an% all actions arisin* out of t(e con%itions an% provisions of t(is tic;et, irrespective of =(ere it is issue%, s(all e file% in t(e competent courts in t(e Cit of Ceu.I (e motion =as %enie% (ence t(e instant petition.
IssueB &s Con%ition No. 1 printe% at t(e ac; of t(e petitionerKs passa*e tic;ets purc(ase% private respon%ents, =(ic( limits t(e venue of actions arisin* from t(e contract of carria*e to t(eCourt of 'irst &nstance of Ceu, vali% an% enforcealeO
Ge$dB No. Consi%ere% in t(e li*(t of circumstances prevailin* in t(e interislan% s(ippin* in%ustr in t(e countr to%a, Be fin% an% (ol% t(at Con%ition No. 1 printe% at t(e ac; of t(e passa*e tic;ets s(oul% e (el% as voi% an% unenforceale for t(e follo=in* reasons first, un%er circumstances oli*ation in t(e inter islan% s(ippin* in%ustr, it is not :ust an% fair to in% passen*ers to t(e terms of t(e con%itions printe% at t(e ac; of t(e passa*e tic;ets, on =(ic( Con%ition No. 1 is $rinte% in fine letters, an% secon%, Con%ition No. 1 suverts t(e pulic polic on transfer of venue of procee%in*s of t(is nature, since t(e same =ill pre:u%ice ri*(ts an% interests of innumerale passen*ers locate% in %ifferent places of t(e countr =(o, un%er Con%ition No. 1, =ill (ave to file suits a*ainst petitioner onl in t(e Cit of Ceu. Consi%erin* t(e e@pense an% troule a passen*er resi%in* outsi%e of Ceu Cit =oul% incur to prosecute a claim in t(e Cit of Ceu, (e =oul% most proal %eci%e not to file t(e action at all. (e con%ition =ill t(us %efeat, instea% of en(ance, t(e en%s of :ustice. pon t(e ot(er (an%, petitioner (as ranc(es or offices in t(e respective ports of call of its vessels an% can affor% to liti*ate in an of t(ese places. 0ence, t(e filin* of t(e suit in t(e C'& of 4isamis ?riental, as =as %one in t(e instant case, =ill not cause inconvenience to, muc( less pre:u%ice, petitioner.
*I+*M&IN# +R. !s. CO*RT OF APPEA(+ FactsB Norerto -uisumin* Sr. an% Gunt(er eoffler =ere amon* t(e passen*ers of $AJs plane from 4actan Cit Ceu to 4anila. (ere =as an e@c(an*e of *uns(ot et=een a Senior N9& a*ent
elon*in*s of plaintiffs =ere actuall %elivere% to %efen%antKs plane personnel or t(at t(e latter =ere notifie% t(ereof.
IssueB 1# B(et(er or not (i:ac;in*roer =as force ma:eure. 2# B(et(er or not $A =as ne*li*ent to overcome t(e (i:ac;in*roer.
Ge$dB 14 )es. (e Court rule% t(at un%er t(e facts, t(e (i*(:ac;in*roer =as force ma:eure, oservin* t(atL (i:ac;ers %o not oar% an airplane t(rou*( a latant %ispla of firepo=er an% violent fur. 'irearms, (an%*rena%es, %namite, an% e@plosives are intro%uce% into t(e airplane surreptitiousl an% =it( t(e utmost cunnin* an% stealt(, alt(ou*( t(ere is an occasional use of innocent (osta*es =(o =ill e col%l mur%ere% unless a plane is *iven to t(e (i:ac;ersK complete %isposal. 24 No, $A =as not ne*li*ent so as to overcome t(e force ma:eure nature of t(e (i:ac;in*. 0i:ac;ers %o not oar% an airplane t(rou*( a latant %ispla of firepo=er an% violent fur. 'irearms an% *rena%es are rou*(t to t(e plane surreptitiousl. $A coul% not (ave een faulte% for =ant of %ili*ence, particularl for failin* to ta;e positive measures to implement Civil Aeronautics A%ministration re*ulations pro(iitin* civilians from carrin* firearms on oar% t(e plane. (e use of t(e most sop(isticate% electronic %etection %evices ma (ave minimize% (i:ac;in* ut still ineffective a*ainst trul %eterminin* (i:ac;ers. (e petition is %enie% an% appeale% %ecision of CA is affirme%.
PAN AMERICAN JOR(D AIRJA?+ INC. !s. RAPADA+ FactsB $rivate respon%ent (el% $assen*er ic;et an% 9a**a*e Claim C(ec; for petitionerKs 'li*(t =it( t(e route from Guam to 4anila. B(ile stan%in* in line to oar% t(e fli*(t at t(e Guam airport, apa%as =as or%ere% petitionerKs (an%carr control a*ent to c(ec;in (is Samsonite attac(e case. apa%as proteste% pointin* to t(e fact t(at ot(er copassen*ers =ere permitte% to (an%carr ul;ier a**a*es. 0e steppe% out of t(e line onl to *o ac; a*ain at t(e en% of it to tr if (e can *et t(rou*( =it(out (avin* to re*ister (is attac(e case. 0o=ever, t(e same man in c(ar*e of (an%carr control %i% not fail to notice (im an% or%ere% (im a*ain to re*ister (is a**a*e. 'or fear t(at (e =oul% miss t(e plane if (e insiste% an% ar*ue% on personall ta;in* t(e valise =it( (im, (e acce%e% to c(ec;in* it in. 0e t(en *ave (is attac(e case to (is rot(er =(o (appene% to e aroun% an% =(o c(ec;e% it in for (im, ut =it(out %eclarin* its contents or t(e value of its contents. pon arrivin* in 4anila apa%as claime% an% =as *iven all (is c(ec;e%in a**a*es e@cept t(e attac(e case. 0e sent (is son, 5or*e apa%as to reuest for t(e searc( of t(e missin* lu**a*e. (e petitioner e@erte% efforts to locate t(e lu**a*e t(rou*( t(e $an American Borl% Air=as4anila &nternational Airport !$AN A44&A# 9a**a*e Service. apa%as receive% a letter from t(e petitionerKs counsel offerin* to settle t(e claim for t(e sum of M16/.// representin* t(e petitionerKs alle*e% limit of liailit for loss or %ama*e to a passen*erKs personal propert un%er t(e contract of carria*e et=een apa%as an% $AN A4. efusin* to accept t(is ;in% of settlement, apa%as file% t(e instant action for %ama*es. (e lo=er court rule% in favor of apa%as after fin%in* no stipulation *ivin* notice to t(e a**a*e liailit limitation. ?n appeal, t(e Court of Appeals affirme% t(e trial court %ecision. 0ence, t(is petition.
IssueB B(et(er or not a passen*er is oun% t(e terms of a passen*er tic;et %eclarin* t(e limitations of carrierJs liailit
Ge$dB )es. (e Barsa= Convention, as amen%e%, specificall provi%es t(at it is applicale to international carria*e =(ic( it %efines in Article 1, par. 2 as follo=sL ! 60 7or the purposes of this Convention, the e)pression $international carriage$ means any carriage in which, according to the agreement between the parties, the place of departure and the place of destination, whether or not there be a breach in the carriage or a transhipment, are situated either within the territories
of two +igh Contracting 8arties or within the territory of a single +igh Contracting 8arty if there is an agreed stopping place within the territory of another State, even if that State is not a +igh Contracting 8arty. Carriage between two points within the territory of a single +igh Contracting 8arty without an agreed stopping place within the territory of another State is not international carriage for the purposes of this Convention. $+igh Contracting 8arty$ refers to a state which has ratified or adhered to the Convention, or which has not effectively denounced the Convention 9rticle /l0;0. No=(ere in t(e Barsa= Convention, as amen%e%, is suc( a %etaile% notice of a**a*e liailit limitations reuire%. Nevert(eless, it s(oul% ecome a common, safe an% practical custom amon* air carriers to in%icate efore(an% t(e precise sums euivalent to t(ose fi@e% t(e Convention. (e Convention *overns t(e availment of t(e liailit limitations =(ere t(e a**a*e c(ec; is comine% =it( or incorporate% in t(e passen*er tic;et. &n t(e case at ar, t(e a**a*e c(ec; is comine% =it( t(e passen*er tic;et in one %ocument of carria*e. (e passen*er tic;et complies =it( Article 3, =(ic( provi%esL !c# a notice to t(e effect t(at, if t(e passen*erKs :ourne involves an ultimate %estination or stop in a countr ot(er t(an t(e countr of %eparture, t(e Barsa= Convention ma e applicale an% t(at t(e Convention *overns an% in most cases limits t(e liailit of carriers for %eat( or personal in:ur an% in respect of loss of or %ama*e to a**a*e. B(at t(e petitioner is concerne% aout is =(et(er or not t(e notice, =(ic( it %i% not fail to state in t(e plane tic;et an% =(ic( it %eeme% to (ave een rea% an% accepte% t(e private respon%ent =ill e consi%ere% t(is Court as a%euate un%er t(e circumstances of t(is case. As earlier state%, t(e Court fin%s t(e provisions in t(e plane tic;et sufficient to *overn t(e limitations of liailities of t(e airline for loss of lu**a*e. (e passen*er, upon contractin* =it( t(e airline an% receivin* t(e plane tic;et, =as e@pecte% to e vi*ilant insofar as (is lu**a*e is concerne%. &f t(e passen*er fails to a%%uce evi%ence to overcome t(e stipulations, (e cannot avoi% t(e application of t(e liailit limitations. (e facts s(o= t(at t(e private respon%ent actuall refuse% to re*ister t(e attac(e case an% c(ose to ta;e it =it( (im %espite (avin* een or%ere% t(e $ANA4 a*ent to c(ec; it in. &n attemptin* to avoi% re*isterin* t(e lu**a*e *oin* ac; to t(e line, private respon%ent manifeste% a %isre*ar% of airline rules on allo=ale (an%carrie% a**a*es. $ru%ence of a reasonal careful person also %ictates t(at cas( an% :e=elr s(oul% e remove% from c(ec;e%inlu**a*e an% place% in oneKs poc;ets or in a (an%carrie% 4anilapaper or plastic envelope. (e alle*e% lac; of enou*( time for (im to ma;e a %eclaration of a (i*(er value an% to pa t(e correspon%in* supplementar c(ar*es cannot :ustif (is failure to compl =it( t(e reuirement t(at =ill e@clu%e t(e application of limite% liailit.
A(ITA(IA !s. IAC FactsB Dr. 'elipa $alo, an associate professor in $, =as invite% to a meetin* of t(e Department of esearc( an% &sotopes of t(e 5oint 'A?&AA Division of Atomic ner* in 'oo% an% A*riculture of N in &spra, &tal. o fulfill t(is en*a*ement, Dr. $alo oo;e% passa*e on petitioner airline, A&A&A. S(e arrive% in 4ilan on t(e %a efore t(e meetin* in accor%ance =it( t(e itinerar an% time tale set for (er A&A&A. S(e =as (o=ever tol% t(e petitionerJs personnel t(ere at 4ilan t(at (er lu**a*e =as %elae% inasmuc( as t(e same =as in one of t(e succee%in* fli*(ts from ome to 4ilan. 0er lu**a*e consiste% of t=o suitcases. 9ut t(e ot(er fli*(ts arrivin* from ome %i% not (ave (er a**a*e on oar%. (e suitcases =ere not actuall restore% to $rof. $alo petitioner until eleven mont(s an% four mont(s after t(e institution of (er action.
IssueB Di% petitioner acte% in a% fait( so as to entitle private respon%ent to %ama*esO
Ge$dB No. (e Barsa= Convention %oes not e@clu%e liailit for ot(er reac(es of contract t(e carrier. (usL (e Convention %oes not t(us operate as an e@clusive enumeration of t(e instances of an airlineKs liailit, or as an asolute limit of t(e e@tent of t(at liailit. 4oreover, sli*(t reflection rea%il lea%s to t(e conclusion t(at it s(oul% e %eeme% a limit of liailit onl in t(ose cases =(ere t(e cause of t(e %eat( or in:ur to person, or %estruction, loss or %ama*e to propert or %ela in its transport is not attriutale to or atten%e% an =ilful miscon%uct, a% fait(, rec;lessness, or ot(er=ise improper con%uct on t(e part of an official or emploee for =(ic( t(e carrier is responsile, an% t(ere is ot(er=ise no special or e@traor%inar form of resultin* in:ur. (e ConventionKs provisions, in s(ort, %o not re*ulate or e@clu%e liailit for ot(er reac(es of contract t(e carrierK or miscon%uct of its officers an% emploees, or for some particular or e@ceptional tpe of %ama*e, ?t(er=ise, Kan air carrier =oul% e e@empt from an liailit for %ama*es in t(e event of its asolute refusal, in a% fait(, to compl =it( a contract of carria*e, =(ic( is asur%.K Nor ma it for a moment e suppose% t(at if a memer of t(e aircraft complement s(oul% inflict some p(sical in:ur on a passen*er, or maliciousl %estro or %ama*e t(e latterKs propert, t(e Convention mi*(t successfull e plea%e% as t(e sole *au*e to %etermine t(e carrierKs liailit to t(e passen*er. Neit(er ma t(e Convention e invo;e% to :ustif t(e %isre*ar% of some e@traor%inar sort of %ama*e resultin* to a passen*er an% preclu%e recover t(erefor eon% t(e limits set sai% Convention. &t is in t(is sense t(at t(e Convention (as een applie%, or i*nore%, %epen%in* on t(e peculiar facts presente% eac( case. &n t(e case at ar, no a% fait( or ot(er=ise improper con%uct ma e ascrie% to t(e emploees of petitioner airlineE an% Dr. $aloKs lu**a*e =as eventuall returne% to (er, elate%l, it is true, ut =it(out appreciale %ama*e. (e fact is, nevert(eless, t(at some species of in:ur =as cause% to Dr. $alo ecause petitioner A&A&A misplace% (er a**a*e an% faile% to %eliver it to (er at t(e time appointe%a reac( of its contract of carria*e, to e sure=it( t(e result t(at s(e =as unale to rea% t(e paper an% ma;e t(e scientific presentation !consistin* of sli%es, autora%io*rams or films, tales an% taulations# t(at s(e (a% painsta;in*l laore% over, at t(e presti*ious international conference, to atten% =(ic( s(e (a% travele% (un%re%s of miles, to (er emarrassment an% t(e %isappointment an% annoance of t(e or*anizers. (ere can e no %out t(at Dr. $alo un%er=ent profoun% %istress an% an@iet, =(ic( *ra%uall turne% to panic an% finall %espair, from t(e time s(e learne% t(at (er suitcases =ere missin* up to t(e time =(en, (avin* *one to ome, s(e finall realize% t(at s(e =oul% no lon*er e ale to ta;e part in t(e conference. Certainl, t(e compensation for t(e in:ur suffere% Dr. $alo cannot un%er t(e circumstances e restricte% to t(at prescrie% t(e Barsa= Convention for %ela in t(e transport of a**a*e. S(e is not, of course, entitle% to e compensate% for loss or %ama*e to (er lu**a*e. As alrea% mentione%, (er a**a*e =as ultimatel %elivere% to (er in 4anila, tar%il, ut safel. S(e is (o=ever entitle% to nominal %ama*es=(ic(, as t(e la= sas, is a%:u%icate% in or%er t(at a ri*(t of t(e plaintiff, =(ic( (as een violate% or inva%e% t(e %efen%ant, ma e vin%icate% an% reco*nize%, an% not for t(e purpose of in%emnifin* t(e plaintiff for an loss suffere%an% t(is Court a*rees t(at t(e respon%ent Court of Appeals correctl set t(e amount t(ereof at $/,///.//.
!. Sa"e#$ o" Paenger NOC*M !s. (A#*NA TA?A&A+ &*+ CO. FactsB A passen*er oar%e% t(e respon%ents us carrin* a o@ =(ic( suc( person atteste% to t(e con%uctor as containin* clot(es an% miscellaneous items.
Appellee, =(o =as a passen*er in appellantKs 9us No. 12/ t(en ma;in* a trip =it(in t(e arrio of Dita, 4unicipalit of 9a, a*una, =as in:ure% as a conseuence of t(e e@plosion of firecrac;ers, containe% in t(e o@ rou*(t t(e copassen*er.
IssueB Di% 9 Co. e@ercise t(e e@traor%inar %ili*ence reuire%O Ge$dB )es, fairness %eman%s t(at in measurin* a common carrierKs %ut to=ar%s its passen*ers, allo=ance must e *iven to t(e reliance t(at s(oul% e repose% on t(e sense of responsiilit of all t(e passen*ers in re*ar% to t(eir common safet. &t is to e presume% t(at a passen*er =ill not ta;e =it( (im ant(in* %an*erous to t(e lives an% lims of (is copassen*ers, not to spea; of (is o=n. Not to e li*(tl consi%ere% must e t(e ri*(t to privac to =(ic( eac( passen*er is entitle%. 0e cannot e su:ecte% to an unusual searc(, =(en (e protests t(e innocuousness of (is a**a*e an% not(in* appears to in%icate t(e contrar, as in t(e case at ar. &n ot(er =or%s, inuir ma e verall ma%e as to t(e nature of a passen*erKs a**a*e =(en suc( is not out=ar%l perceptile, ut eon% t(is, constitutional oun%aries are alrea% in %an*er of ein* trans*resse%. Callin* a policeman to (is ai%, as su**este% t(e service manual invo;e% t(e trial :u%*e, in compellin* t(e passen*er to sumit to more ri*i% inspection, after t(e passen*er (a% alrea% %eclare% t(at t(e o@ containe% mere clot(es an% ot(er miscellaneous, coul% not (ave :ustifie% invasion of a constitutionall protecte% %omain.
MECENA+ !s. CA FactsB 4F acloan Cit, a ar*etpe oil tan;er o=ne% t(e $(ilippine National ?il Compan !$N?C# an% operate% t(e $N?C S(ippin* an% ransport Corporation !$N?C S(ippin*#, (avin* unloa%e% its car*o, left for Ne*ros ?cci%ental =(en it colli%e% =it( a carrier s(ip name% Don 5uan. B(en t(e collision occurre%, t(e sea =as calm, t(e =eat(er fair an% visiilit *oo%. As a result of t(is collision, t(e 4F< Don 5uan san; an% (un%re%s of its passen*ers peris(e%. Amon* t(e illfate% passen*ers =ere t(e parents of petitioners, t(e spouses $erfecto 4ecenas an% Sofia 4ecenas, =(ose o%ies =ere never foun% %espite intensive searc( petitioners.
IssueB B(et(er or not t(e respon%ents =ere ne*li*entO Ge$dB
)es, t(e e(aviour of t(e captain of t(e Don 5uan in tills instanceplain* ma(:on* efore an% up to t(e time of collision constitutes e(aviour t(at is simpl unacceptale on t(e part of t(e master of a vessel to =(ose (an%s t(e lives an% =elfare of at least seven (un%re% fift !7+/# passen*ers (a% een entruste%. B(et(er or not Capt. Santistean =as off%ut or on%ut at or aroun% t(e time of actual collision is uite immaterialE t(ere is, ot( realisticall spea;in* an% in contemplation of la=, no suc( t(in* as off%ut (ours for t(e master of a vessel at sea t(at is a common carrier upon =(om t(e la= imposes t(e %ut of e@traor%inar %ili*ence. (e recor% s(o=s t(at t(e Don 5uan san; =it(in ten !1/# to fifteen !1+# minutes after initial contact =it( t(e acloan Cit. B(ile t(e failure of Capt. Santistean to supervise (is officers an% cre= in t(e process of aan%onin* t(e s(ip an% (is failure to avail of measures to prevent t(e too rapi% sin;in* of (is vessel after collision, %i% not cause t(e collision t(emselves, suc( failures %outless contriute% materiall to t(e conseuent loss of life an%, moreover, =ere in%icative of t(e ;in% an% level of %ili*ence e@ercise% Capt. Santistean in respect of (is vessel an% (is officers an% men prior to actual contact et=een t(e t=o !2# vessels. (e officeron=atc( in t(e Don 5uan a%mitte% t(at (e (a% faile% to inform Capt. Santistean not onl of t(e imminent %an*er of collision ut even of t(e actual collision itself (ere is also evi%ence t(at t(e Don 5uan =as carrin* more passen*ers t(an s(e (a% een certifie% as allo=e% to carr.
n%er t(ese circumstances, a presumption of *ross ne*li*ence on t(e part of t(e vessel !(er officers an% cre=# an% of its s(ipo=ner arises.
NE#RO+ NA,I#ATION CO. !s. CA FactsB $rivate respon%ent amon 4iran%a purc(ase% from t(e Ne*ros Navi*ation Co., &nc. four special cain tic;ets for (is =ife, %au*(ter, son an% niece =(o =ere *oin* to 9acolo% Cit to atten% a famil reunion oar%in* t(e Don 5uan. Don 5uan colli%e% off t(e alas Strait in 4in%oro, =it( t(e 4F acloan Cit, an oil tan;er o=ne% t(e $(ilippine National ?il Compan !$N?C# an% t(e $N?C S(ippin* an% ransport Corporation !$N?CFSC#. As a result, t(e 4F< Don 5uan san;. Several of (er passen*ers peris(e% in t(e sea tra*e%. (e o%ies of some of t(e victims =ere foun% an% rou*(t to s(ore, ut t(e four memers of private respon%entsK families =ere never foun%.
IssueB B(et(er or not t(e petitioners e@ercise% t(e e@traor%inar %ili*ence reuire%O Ge$dB
No. As =it( t(e 4ecenas case, t(is Court foun% petitioner *uilt of ne*li*ence in !1# allo=in* or toleratin* t(e s(ip captain an% cre= memers in plain* ma(:on* %urin* t(e voa*e, !2# in failin* to maintain t(e vessel sea=ort( an% !3# in allo=in* t(e s(ip to carr more passen*ers t(an it =as allo=e% to carr. Also, t(e %ut to e@ercise %ue %ili*ence inclu%es t(e %ut to ta;e passen*ers or car*oes t(at are =it(in t(e carrin* capacit of t(e v essel.
8OREAN AIR(INE+ CO. !s. CA FactsB 5uanito C. apuz, an automotive electrician, =as contracte% for emploment in 5e%%a(, Sau%i Araia. apuz =as suppose% to leave via orean Airlines. &nitiall, (e =as =aitliste%, =(ic( meant t(at (e coul% onl e accommo%ate% if an of t(e confirme% passen*ers faile% to s(o= up at t(e airport efore %eparture. B(en t=o of suc( passen*ers %i% not appear, apuz an% anot(er person t(e name of $erico =ere *iven t(e t=o unclaime% seats. As (e =as aout to oar% t(e sai% airline a A officer pointe% to (im an% s(oute% Do=nV Do=nV 0e =as t(us arre% from ta;in* t(e fli*(t. B(en (e later as;e% for anot(er oo;in*, (is tic;et =as cancele% A. Conseuentl, (e =as unale to report for (is =or; in Sau%i Araia =it(in t(e stipulate% 2=ee; perio% an% so lost (is emploment.
IssueB B(et(er or not A committe% a reac( of t(e Contract of Carria*eO Ge$dB
)es. (e status of apuz as stan% passen*er =as c(an*e% to t(at of a confirme% passen*er =(en (is name =as entere% in t(e passen*er manifest of A for its 'li*(t No. "/3. 0is clearance t(rou*( immi*ration an% customs clearl s(o=s t(at (e (a% in%ee% een confirme% as a passen*er of A in t(at fli*(t. A t(us committe% a reac( of t(e contract of carria*e et=een t(em =(en it faile% to rin* apuz to (is %estination. (is Court (as (el% t(at a contract to transport passen*ers is %ifferent in ;in% an% %e*ree from an ot(er contractual relation. (e usiness of t(e carrier is mainl =it( t(e travelin* pulic. &t invites people to avail t(emselves of t(e comforts an% a%vanta*es it offers. (e contract of air carria*e *enerates a relation atten%e% =it( a pulic %ut. $assen*ers (ave t(e ri*(t to e treate% t(e carrierKs emploees =it( ;in%ness, respect, courtes an% %ue consi%eration. (e are entitle% to e protecte% a*ainst personal miscon%uct, in:urious lan*ua*e, in%i*nities an% auses from suc( emploees. So it is t(at an %iscourteous
con%uct on t(e part of t(ese emploees to=ar% a passen*er *ives t(e latter an action for %ama*es a*ainst t(e carrier.
FORT*NE EPRE++ !s. CA FactsB $etitioner is a us compan in nort(ern 4in%anao. A us of petitioner fi*ure% in an acci%ent =it( a :eepne in aus=a*an, anao %el Norte, resultin* in t(e %eat( of several passen*ers of t(e :eepne, inclu%in* t=o 4aranaos. (e Constaular officer foun% out t(at certain 4aranaos =ere plannin* to ta;e reven*e on t(e petitioner urnin* some of its uses. ?n Novemer 22, 1"8", t(ree arme% 4aranaos =(o preten%e% to e passen*ers, seize% a us of petitioner at inamon, anao %el Norte =(ile on its =a to &li*an Cit. (e starte% pourin* *asoline insi%e t(e us, as t(e ot(er (el% t(e passen*er at a =it( a (an%*un t(en or%ere% t(e passen*er to *et off t(e us. A passen*er Att. Caoron* plea%e% =it( t(e 4aranaos to spare t(e us %river ut t(e 4aranaos s(ot (im.
IssueB B(et(er or not t(e petitioners =ere *uilt of a reac( of t(e contract of carria*eO Ge$dB
)es, Art. 1763 of t(e Civil Co%e provi%es t(at a common carrier is responsile for in:uries suffere% a passen*er on account of =ilfull acts of ot(er passen*ers, if t(e emploees of t(e common carrier coul% (ave prevente% t(e act t(rou*( t(e e@ercise of t(e %ili*ence of a *oo% fat(er of a famil. &n t(e present case, it is clear t(at ecause of t(e ne*li*ence of petitionerKs emploees, t(e seizure of t(e us 4anan**olo an% (is men =as ma%e possile. Despite =arnin* t(e $(ilippine Constaular at Ca*aan %e ?ro t(at t(e 4aranaos =ere plannin* to ta;e reven*e on t(e petitioner urnin* some of its uses an% t(e assurance of petitionerKs operation mana*er, Dios%a%o 9ravo, t(at t(e necessar precautions =oul% e ta;en, petitioner %i% not(in* to protect t(e safet of its passen*ers. 0a% petitioner an% its emploees een vi*ilant t(e =oul% not (ave faile% to see t(at t(e malefactors (a% a lar*e uantit of *asoline =it( t(em. n%er t(e circumstances, simple precautionar measures to protect t(e safet of passen*ers, suc( as fris;in* passen*ers an% inspectin* t(eir a**a*es, preferal =it( nonintrusive *a%*ets suc( as metal %etectors, efore allo=in* t(em on oar% coul% (ave een emploe% =it(out violatin* t(e passen*erKs constitutional ri*(ts. (e acts of 4aranaos coul% not e consi%ere% as caso fortuito ecause t(ere =as alrea% a =arnin* t(e $C. No contriutor ne*li*ence coul% e attriute% to t(e %ecease%. (e assailantKs motive =as to retaliate for t(e loss of life of t=o 4aranaos as a result of t(e collision et=een petitionerKs us an% t(e :eepne in =(ic( t(e t=o 4aranaos =ere ri%in*. (e arme% men actuall allo=e% %ecease% to retrieve somet(in* from t(e us. B(at apparentl an*ere% t(em =as (is attempt to (elp t(e %river of t(e us plea%in* for (is life.
#ATCGA(IAN !s. DE(IM FactsB $etitioner enal%a Gatc(alian oar%e% respon%entKs mini us. B(ile t(e us =as runnin* alon* t(e (i*(=a in 9arrio $aocpoc, 9auan*, nion, a snappin* soun% =as su%%enl (ear% at one part of t(e us an%, s(ortl t(ereafter, t(e ve(icle umpe% a cement flo=er pot on t(e si%e of t(e roa%, =ent off t(e roa%, turne% turtle an% fell into a %itc( as a result petitioner sustaine% in:uries. As s(e an% several ot(ers =ere confine% in a (ospital, respon%ent Delim pai% for t(e (ospitalization e@penses an% (a% t(e passen*ers si*n a =aiver statin* t(at t(e =ere no lon*er intereste% to file a complaint. Not=it(stan%in* t(is %ocument, petitioner Gat(alian file% a complaint.
IssueB B(et(er or not t(e private respon%ent =ere ne*li*ent. Ge$dB
(e recor% iel%s affirmative evi%ence of fault or ne*li*ence on t(e part of respon%ent common carrier. (e %river %i% not stop to c(ec; if ant(in* (a% *one =ron* =it( t(e us =(en t(e snappin* soun% =as (ear% an% ma%e ;no=n to (im t(e passen*ers, instea% tol% t(em t(at it =as normal. (e %riverKs repl necessaril in%icate% t(at t(e same snappin* soun% (a% een (ear% in t(e us on previous occasions. (is coul% onl mean t(at t(e us (a% not een c(ec;e% p(sicall or mec(anicall to %etermine =(at =as causin* t(e snappin* soun% =(ic( (a% occurre% so freuentl t(at t(e %river (a% *otten accustome% to it. Suc( a soun% is oviousl alien to a motor ve(icle in *oo% operatin* con%ition, an% even a mo%icum of concern for life an% lim of passen*ers %ictate% t(at t(e us e c(ec;e% an% repaire%. (e ovious continue% failure of respon%ent to loo; after t(e roa%=ort(iness an% safet of t(e us, couple% =it( t(e %riverKs refusal or ne*lect to stop t(e minius after (e (a% (ear% once a*ain t(e snappin* soun% an% t(e cr of alarm from one of t(e passen*ers, constitute% =anton %isre*ar% of t(e p(sical safet of t(e passen*ers, an% (ence *ross ne*li*ence on t(e part of respon%ent an% (is %river. 9ecause =(at is involve% (ere is t(e liailit of a common carrier for in:uries sustaine% passen*ers in respect of =(ose safet a common carrier must e@ercise e@traor%inar %ili*ence, =e must construe an suc( purporte% =aiver most strictl a*ainst t(e common carrier. 'or a =aiver to e vali% an% effective, it must not e contrar to la=, morals, pulic polic or *oo% customs. A cursor e@amination of t(e purporte% =aiver =ill rea%il s(o= t(at appellees %i% not actuall =aive t(eir ri*(t to claim %ama*es from appellant for t(e latterKs failure to compl =it( t(eir contract of carria*e. All t(at sai% %ocument proves is t(at t(e e@presse% a %esire to ma;e t(e =aiver =(ic( oviousl is not t(e same as ma;in* an actual =aiver of t(eir ri*(t. A =aiver of t(e ;in% invo;e% appellant must e clear an% uneuivocal. A person is entitle% to t(e p(sical inte*rit of (is or (er o%E if t(at inte*rit is violate% or %iminis(e%, actual in:ur is suffere% for =(ic( actual or compensator %ama*es are %ue an% assessale. $etitioner Gatc(alian is entitle% to e place% as nearl as possile in t(e con%ition t(at s(e =as efore mis(ap. A scar, especiall one on t(e face of t(e =oman, resultin* from t(e infliction of in:ur upon (er, is a violation of o%il inte*rit, *ivin* raise to a le*itimate claim for restoration to (er con%ition ante.
DE( CA+TI((O !s. A?MA(IN FactsB 4ario %el Castillo, a %eafmute, son of plaintiff Severo %el Castillo oar%e% a us of private respon%ent us line. pon ali*(tin* from t(e us, (e fell an% %ie% as a result. espon%ents conten% t(at t(e pro@imate cause of 4arioKs %eat( =as (is rec;lessness an% *ross ne*li*ence in :umpin* out of t(e us =(ile in motion.
IssueB B(et(er or not respon%ents e@ercise% e@traor%inar %ili*ence. Ge$dB
No, common carriers are responsile for t(e %eat( of t(eir passen*ers !Articles 176 an% 22/6 of t(e Civil Co%e#. (is liailit inclu%es t(e loss of t(e earnin* capacit of t(e %ecease%. &t appears proven t(at t(e %efen%ant corporations faile% to e@ercise t(e %ili*ence t(at =as t(eir %ut to oserve accor%in* to Articles 1733 an% 17++. (e con%uctor =as apprise% of t(e fact t(at 4ario %el Castillo =as %eaf an% %um. Bit( t(is ;no=le%*e t(e con%uctor s(oul% (ave ta;en e@traor%inar care for t(e safet of t(e sai% passen*er. &n t(is (e faile%.
PGI(IPPINE RA&&IT &*+ (INE+ !s. IAC
FactsB Catalina $ascua =it( several ot(ers oar%e% t(e :eep o=ne% spouses &si%ro 4an*une an% Guillerma Carreon an% %riven ranuilino 4analo oun% for Carmen, osales, $an*asinan. pon reac(in* arlac t(e ri*(t rear =(eel of t(e :eepne =as %etac(e%, so it =as runnin* in an unalance% position. 4analo steppe% on t(e ra;e, as a result of =(ic(, t(e :eepne =(ic( =as t(en runnin* on t(e eastern lane !its ri*(t of =a# ma%e a turn, inva%in* an% eventuall stoppin* on t(e =estern lane an% =as (it t(e petitioner companJs us causin* t(e %eat( of Catalina $ascua an% t=o ot(er passen*ers.
IssueB Bet(er or not t(e Doctrine of ast Clear C(ance applies in t(e case at arO Ge$dB
No, (e principle aout t(e last clear c(ance, =oul% call for application in a suit et=een t(e o=ners an% %rivers of t(e t=o colli%in* ve(icles. &t %oes not arise =(ere a passen*er %eman%s responsiilit from t(e carrier to enforce its contractual oli*ations. 'or it =oul% e ineuitale to e@empt t(e ne*li*ent %river of t(e :eepne an% its o=ners on t(e *roun% t(at t(e ot(er %river =as li;e=ise *uilt of ne*li*ence. &t is t(e rule un%er t(e sustantial factor test t(at if t(e actorKs con%uct is a sustantial factor in rin*in* aout (arm to anot(er, t(e fact t(at t(e actor neit(er foresa= nor s(oul% (ave foreseen t(e e@tent of t(e (arm or t(e manner in =(ic( it occurre% %oes not prevent (im from ein* liale. (e us %riverKs con%uct is not a sustantial factor in rin*in* aout (arm to t(e passen*ers of t(e :eepne. &t cannot e sai% t(at t(e us =as travellin* at a fast spee% =(en t(e acci%ent occurre% ecause t(e spee% of 8/ to "/ ;ilometers per (our, assumin* suc( calculation to e correct, is et =it(in t(e spee% limit allo=e% in (i*(=as. (e %river cannot e (el% :ointl an% severall liale =it( t(e carrier in case of reac( of t(e contract of carria*e. (e rationale e(in% t(is is rea%il %iscernile. 'irstl, t(e contract of carria*e is et=een t(e carrier an% t(e passen*er, an% in t(e event of contractual liailit, t(e carrier is e@clusivel responsile t(erefore to t(e passen*er, even if suc( reac( e %ue to t(e ne*li*ence of (is %river. &n ot(er =or%s, t(e carrier can neit(er s(ift (is liailit on t(e contract to (is %river nor s(are it =it( (im, for (is %riverKs ne*li*ence is (is. Secon%l, if Be ma;e t(e %river :ointl an% severall liale =it( t(e carrier, t(at =oul% ma;e t(e carrierKs liailit personal instea% of merel vicarious an% conseuentl, entitle% to recover onl t(e s(are =(ic( correspon%s to t(e %river, contra%ictor to t(e e@plicit provision of Article 2181 of t(e Ne= Civil Co%e.
&*+TAMANTE !s. CA FactsB A collision occurre% et=een a *ravel an% san% truc;, an% a 4az%a passen*er us alon* t(e national roa% at Caliuo, anza, Cavite. (e front left si%e portion !aran%illa# of t(e o% of t(e truc; si%es=ipe% t(e left si%e =all of t(e passen*er us, rippin* off t(e sai% =all from t(e %riverKs seat to t(e last rear seat. Due to t(e impact, several passen*ers of t(e us =ere t(ro=n out an% %ie% as a result of t(e in:uries t(e sustaine%, Amon* t(ose ;ille% =ere o*elio 9ustamante an% (is spouse an% c(il%ren, an% several ot(ers. Durin* t(e inci%ent, t(e car*o truc; =as %riven %efen%ant 4ontesiano an% o=ne% %efen%ant Del $ilarE =(ile t(e passen*er us =as %riven %efen%ant Susulin. (e ve(icle =as re*istere% in t(e name of %efen%ant Novelo ut =as o=ne% an%For operate% as a passen*er us :ointl %efen%ants 4a*tia an% Serra%o, un%er a franc(ise, =it( a line from Naic, Cavite, to 9aclaran, $aranaue, 4etro 4anila, an% vice versa, =(ic( Novelo sol% to 4a*tia on Novemer 8, 1"81, an% =(ic( t(e latter transferre% to Serra%o !Cerra%o# on 5anuar 18, 1"83. After a careful perusal of t(e circumstances of t(e case, t(e trial court reac(e% t(e conclusion t(at t(e ne*li*ent acts of ot( %rivers contriute% to or comine% =it( eac( ot(er in %irectl causin* t(e acci%ent =(ic( le% to t(e %eat( of t(e aforementione% persons. &t coul% not e %etermine% from t(e evi%ence t(at it
=as onl t(e ne*li*ent act of one of t(em =(ic( =as t(e pro@imate cause of t(e collision. &n vie= of t(is, t(e liailit of t(e t=o %rivers for t(eir ne*li*ence must e soli%ar. 'rom sai% %ecision, onl %efen%ants 'e%erico %el $ilar an% %ilerto 4ontesiano, o=ner an% %river, respectivel, of t(e san% an% *ravel truc; (ave interpose% an appeal efore t(e respon%ent Court of Appeals, =(ic( set asi%e t(e trial courtJs %ecision. 0ence t(e present petition.
IssueB B(et(er t(e respon%ent court (as properl an% le*all applie% t(e %octrine of last clear c(ance in t(e present case %espite its o=n fin%in* t(at appellant car*o truc; %river %ilerto 4ontesiano =as a%mitte%l ne*li*ent in %rivin* (is car*o truc; ver fast on a %escen%in* roa% an% in t(e presence of t(e us %river comin* from t(e opposite %irection.
Ge$dB (e respon%ent court a%opte% t(e %octrine of last clear c(ance. (e %octrine, state% roa%l, is t(at t(e ne*li*ence of t(e plaintiff %oes not preclu%e a recover for t(e ne*li*ence of t(e %efen%ant =(ere it appears t(at t(e %efen%ant, e@ercisin* reasonale care an% pru%ence, mi*(t (ave avoi%e% in:urious conseuences to t(e plaintiff not=it(stan%in* t(e plaintiffKs ne*li*ence. &n ot(er =or%s, t(e %octrine of last clear c(ance means t(at even t(ou*( a personKs o=n acts ma (ave place% (im in a position of peril, an% an in:ur results, t(e in:ure% person is entitle% to recover. As t(e %octrine is usuall state%, a person =(o (as t(e last clear c(ance or opportunit of avoi%in* an acci%ent, not=it(stan%in* t(e ne*li*ent acts of (is opponent or t(at of a t(ir% person impute% to t(e opponent is consi%ere% in la= solel responsile for t(e conseuences of t(e acci%ent. !San*co, orts an% Dama*es, t( %., 1"86, p. 16+#. (e practical import of t(e %octrine is t(at a ne*li*ent %efen%ant is (el% liale to a ne*li*ent plaintiff, or even to a plaintiff =(o (as een *rossl ne*li*ent in placin* (imself in peril, if (e, a=are of t(e plaintiffs peril, or accor%in* to some aut(orities, s(oul% (ave een a=are of it in t(e reasonale e@ercise of %ue case, (a% in fact an opportunit later t(an t(at of t(e plaintiff to avoi% an acci%ent !+7 Am. 5ur., 2%, pp. 7"87""#. All premises consi%ere%, t(e Court is convince% t(at t(e respon%ent Court committe% an error of la= in applin* t(e %octrine of last clear c(ance as et=een t(e %efen%ants, since t(e case at ar is not a suit et=een t(e o=ners an% %rivers of t(e colli%in* ve(icles ut a suit rou*(t t(e (eirs of t(e %ecease% passen*ers a*ainst ot( o=ners an% %rivers of t(e colli%in* ve(icles. (erefore, t(e respon%ent court erre% in asolvin* t(e o=ner an% %river of t(e car*o truc; from liailit.
(ARA !s. ,A(ENCIA FactsB (e %ecease% =as an inspector of t(e 9ureau of 'orestr statione% in Davao. (e %efen%ant is en*a*e% in t(e usiness of e@portin* lo*s from (is lumer concession in Cotaato. ara =ent to sai% concession upon instructions of (is c(ief to classif t(e lo*s of %efen%ant =(ic( =ere aout to e loa%e% on a s(ip anc(ore% in t(e port of $aran*. ara oar%e% =it( several ot(ers a pic;up oun% for Davao an% =ere seate% at t(e ac; on an improvise% enc(. ara acci%entall fell from t(e pic;up an% as a result (e suffere% serious in:uries =(ic( lea% to (is %eat(.
IssueB B(et(er or not t(e respon%ent faile% to e@ercise t(e or%inar %ili*ence reuire%O Ge$dB
)es. (e o=ner an% %river of a ve(icle o=es to accommo%ation passen*ers or invite% *uests merel t(e %ut to e@ercise reasonale care so t(at t(e ma e transporte% safel to t(eir %estination. (us, (e rule is estalis(e% =ei*(t of aut(orit t(at t(e o=ner or operator of an automoile o=es t(e %ut to an invite% *uest to e@ercise reasonale care in its operation, an% not unreasonal to e@pose (im to %an*er an% in:ur increasin* t(e (azar% of travel. (e o=ner of t(e ve(icle in t(e case at ar is onl reuire% to oserve or%inar care, an% is not in %ut oun% to e@ercise e@traor%inar %ili*ence as reuire% our la=.
A passen*er must oserve t(e %ili*ence of a fat(er of a famil to avoi% in:ur to (imself =(ic( means t(at if t(e in:ur to t(e passen*er (as een pro@imatel cause% (is o=n ne*li*ence, t(e carrier cannot e (el% liale.
NECE++ITO !s. PARA+ FactsB Severina Garces an% (er oneear ol% son oar%e% passen*er auto truc; of t(e $(ilippine ait 9us ines. (e truc; entere% a =oo%en ri%*e, ut t(e front =(eels s=erve% to t(e ri*(tE t(e %river lost control, an% after =rec;in* t(e ri%*eKs =oo%en rails, t(e truc; fell on its ri*(t si%e into a cree; =(ere =ater =as reast %eep. (e mot(er, Severina Garces, =as %ro=ne%E t(e son,t(e truc; fell on its ri*(t si%e into a cree; =(ere =ater =as reast %eep. (e mot(er, Severina Garces, =as %ro=ne%E t(e son sustaine% in:uries.
IssueB B(et(er or not t(e carrier is liale Ge$dB
B(ile t(e carrier is not an insurer of t(e safet of t(e passen*ers, it s(oul% nevert(eless e (el% to ans=er for t(e la=s its euipment if suc( fla=s =ere at all %iscoverale. &n t(is connection, t(e manufacturer of t(e %efective appliance is consi%ere% in la= t(e a*ent of t(e carrier, an% t(e *oo% repute of t(e manufacturer =ill not relieve t(e carrier from liailit. (e rationale of t(e carrierKs liailit is t(e fact t(at t(e passen*er (as no privit =it( t(e manufacturer of t(e %efective euipmentE (ence, (e (as no reme% a*ainst (im, =(ile t(e carrier usuall (as.
APAN AIR(INE+ !s. CA FactsB $rivate respon%ents oar%e% t(e 5A fli*(ts to 4anila =it( a stop over at Narita 5apan at t(e airlinesK e@pense. pon arrival at Narita private respon%ents =ere illete% at 0otel Ni;;o Narita for t(e ni*(t. (e ne@t %a, private respon%ents =ent to t(e airport to ta;e t(eir fli*(t to 4anila. 0o=ever, %ue to t(e 4t. $inatuo eruption ren%ere% NA&A inaccessile to airline traffic. 0ence, private respon%entsK trip to 4anila =as cancelle% in%efinitel. 5A t(en oo;e% anot(er fli*(t fort t(e passen*ers an% a*ain ans=ere% for t(e (otel accommo%ations ut still t(e succee%in* fli*(ts =ere cancelle%.
IssueB B(et(er or not 5A =as oli*ate% to ans=er for t(e accommo%ation e@penses %ue to t(e force ma:eure.
Ge$dB
No, t(ere is no uestion t(at =(en a part is unale to fulfill (is oli*ation ecause of force ma:eure, t(e *eneral rule is t(at (e cannot e (el% liale for %ama*es for nonperformance. Corollaril, =(en 5A =as prevente% from resumin* its fli*(t to 4anila %ue to t(e effects of 4t. $inatuo eruption, =(atever losses or %ama*es in t(e form of (otel an% meal e@penses t(e stran%e% passen*ers incurre%, cannot e c(ar*e% to 5A. )et it is un%eniale t(at 5A assume% t(e (otel e@penses of respon%ents for t(eir une@pecte% overni*(t sta on 5une 1+, 1""1. &t (as een (el% t(at airline passen*ers must ta;e suc( ris;s inci%ent to t(e mo%e of travel. &n t(is re*ar%, a%verse =eat(er con%itions or e@treme climatic c(an*es are some of t(e perils involve% in air travel, t(e conseuences of =(ic( t(e passen*er must assume or e@pect.
B(ile 5A =as no lon*er reuire% to %efra private respon%entsK livin* e@penses %urin* t(eir sta in Narita on account of t(e fortuitous event, 5A (a% t(e %ut to ma;e t(e necessar arran*ements to transport private respon%ents on t(e first availale connectin* fli*(t to 4anila. $etitioner 5A rene*e% on its oli*ation to loo; after t(e comfort an% convenience of its passen*ers =(en it %eclassifie% private respon%ents from transit passen*ers to ne= passen*ers as a result of =(ic( private respon%ents =ere oli*e% to ma;e t(e necessar arran*ements t(emselves for t(e ne@t fli*(t to 4anila.
(A?*#AN !s. IAC FactsB $e%ro . au*an file% an action for %ama*es a*ainst Go%ofre%o &si%ro, alle*in* t(at =(ile at 9aretet, 9a*aa*, Nueva
IssueB BFN %efen%ant is asolve% virtue of t(e %octrine of res ipsa louitur. Ge$dB No. es ipsa louitur is a %octrine =(ic( states t(usL B(ere t(e t(in* =(ic( causes in:ur is s(o=n to e un%er t(e mana*ement of t(e %efen%ant, an% t(e acci%ent is suc( as in t(e or%inar course of t(in*s %oes not (appen if t(ose =(o (ave t(e mana*ement use proper care, it affor%s reasonale evi%ence, in t(e asence of an e@planation t(e %efen%ant, t(at t(e acci%ent arose from =ant of care. &t is clear t(at t(e %river %i% not ;no= (is responsiilities ecause (e apparentl %i% not c(ec; (is ve(icle efore (e too; it on t(e roa%. &f (e %i% (e coul% (ave %iscovere% earlier t(at t(e ra;e flui% pipe on t(e ri*(t =as cut, an% coul% (ave repaire% it an% t(us t(e acci%ent coul% (ave een avoi%e%. 4oreover, to our min%, t(e fact t(at t(e private respon%ent use% to instruct (is %river to e careful in (is %rivin*, t(at t(e %river =as license%, an% t(e fact t(at (e (a% no recor% of an acci%ent, as foun% t(e respon%ent court, are not sufficient to %estro t(e fin%in* of ne*li*ence of t(e e*ional rial Court *iven t(e facts estalis(e% at t(e trial (e private respon%ent or (is mec(anic, =(o must e competent, s(oul% (ave con%ucte% a t(orou*( inspection of (is ve(icle efore allo=in* (is %river to %rive it. &n t(e li*(t of t(e circumstances otainin* in t(e case, =e (ol% t(at &si%ro faile% to prove t(at t(e %ili*ence of a *oo% fat(er of a famil in t(e supervision of (is emploees =(ic( =oul% e@culpate (im from soli%ar liailit =it( (is %river to t(e petitioner. espon%ent &si%ro posits t(at an immoile o:ect alon* t(e (i*(=a, li;e a par;e% truc;, poses serious %an*er to a movin* ve(icle =(ic( (as t(e ri*(t to e on t(e (i*(=a. 0e ar*ues t(at since t(e par;e% car*o truc; in t(is case =as a t(reat to life an% lim an% propert, it =as incument upon t(e %river as =ell as t(e petitioner, =(o claims to e a (elper of t(e truc; %river, to e@ercise e@treme care so t(at t(e motorist ne*otiatin* t(e roa% =oul% e properl fore=arne% of t(e peril of a par;e% ve(icle. &si%ro sumits t(at t(e ur%en of provin* t(at care an% %ili*ence =ere oserve% is s(ifte% to t(e petitioner, for, as previousl claime%, (is !&si%roKs# &suzu truc; (a% a ri*(t to e on t(e roa%, =(ile t(e immoile car*o truc; (a% no usiness, so to spea;, to e t(ere. i;e=ise, &si%ro proffers t(at t(e petitioner must s(o= to t(e satisfaction of a reasonale min% t(at t(e %river an% (e !petitioner# (imself, provi%e% an earl =arnin* %evice, li;e t(at reuire% la=, or, some ot(er a%euate means t(at =oul% properl fore=arn ve(icles of t(e impen%in* %an*er t(at t(e par;e% ve(icle pose% consi%erin* t(e time, place, an% ot(er peculiar circumstances of t(e occasion. Asent suc( proof of care, as in t(e case at ar, &si%ro conclu%es, =oul%,
un%er t(e %octrine of es ipsa louitur, evo;e t(e presumption of ne*li*ence on t(e part of t(e %river of t(e par;e% car*o truc; as =ell as (is (elper, t(e petitioner (erein, =(o =as fi@in* t(e flat tire of t(e sai% truc;. espon%ent &si%roKs contention is untenale.
(A MA((ORCA !s. DE E+*+ FactsB $laintiffs (usan% an% =ife, to*et(er =it( t(eir minor c(il%ren, oar%e% a a 4allorca us. pon arrival at t(eir %estination, plaintiffs an% t(eir c(il%ren ali*(te% from t(e us an% t(e fat(er le% t(em to a s(a%e% spot aout + meters a=a from t(e ve(icle. (e fat(er returne% to t(e us to *et a piece of a**a*e =(ic( =as not unloa%e%. 0e =as follo=e% (er %au*(ter auel. B(ile t(e fat(er =as still on t(e runnin* oar% a=aitin* for t(e con%uctor to *ive (is a**a*e, t(e us starte% to run so t(at t(e fat(er (a% to :ump. auel, =(o =as near t(e us, =as run over an% ;ille%. (e o=er Court ren%ere% :u%*ment for t(e plaintiff =(ic( =as affirme% CA, (ol%in* a 4allorca liale for uasi%elict. a 4allorca conten%e% t(at =(en t(e c(il% =as ;ille%, s(e =as no lon*er a passen*er an% t(erefore t(e contract of carria*e (a% terminate%.
IssueB B(et(er or not t(e %ecease% is consi%ere% to e still a passen*er of t(e us to =(ic( t(e petitioner coul% e (el% liale.
Ge$dB )es. &t is a reco*nize% rule t(at t(e relation et=een carrier an% passen*ers %oes not cease at t(e moment t(e passen*er ali*(ts from t(e carrierJs premises, to e %etermine% from t(e circumstances. &n t(is case, t(ere =as no utmost %ili*ence. 'irstl, t(e %river, alt(ou*( stoppin* t(e us, %i% not put off t(e en*ine. Secon%l, (e starte% to run t(e us even efore t(e us con%uctor *ave (im t(e si*nal an% =(ile t(e latter =as unloa%in* car*o. 0ere t(e presence of sai% passen*ers near t(e us =as not unreasonale an% t(e %uration of responsiilit still e@ists.
A&OITIL +GIPPIN# CORPORATION !s. CA FactsB Anacleto
court rule% is never presume%. Aoitiz appeale% t(e same to respon%ent Court of Appeals =(ic( affirme% t(e fin%in*s of of t(e trial court e@cept as to t(e amount of %ama*es a=ar%e% to t(e
IssueB B(et(er or not t(e responsiilit of Aoitiz to t(e victim cease% =(en it %isemar;e% from t(e vessel. Ge$dB No. (e rule is t(at t(e relation of carrier an% passen*er continues until t(e passen*er (as een lan%e% at t(e port of %estination an% (as left t(e vessel o=nerKs %oc; or premises. ?nce create%, t(e relations(ip =ill not or%inaril terminate until t(e passen*er (as, after reac(in* (is %estination, safel ali*(te% from t(e carrierKs conveance or (a% a reasonale opportunit to leave t(e carrierKs premises. All persons =(o remain on t(e premises a reasonale time after leavin* t(e conveance are to e %eeme% passen*ers, an% =(at is a reasonale time or a reasonale %ela =it(in t(is rule is to e %etermine% from all t(e circumstances, an% inclu%es a reasonale time to see after (is a**a*e an% prepare for (is %eparture. (e carrierpassen*er relations(ip is not terminate% merel t(e fact t(at t(e person transporte% (as een carrie% to (is %estination if, for e@ample, suc( person remains in t(e carrierKs premises to claim (is a**a*e. B(en t(e acci%ent occurre%, t(e victim =as in t(e act of unloa%in* (is car*oes, =(ic( (e (a% ever ri*(t to %o, from petitionerKs vessel. ven if (e (a% alrea% %isemar;e% an (our earlier, (is presence in petitionerKs premises =as not =it(out cause. (e victim (a% to claim (is a**a*e =(ic( =as possile onl one (our after t(e vessel arrive% since it =as a%mitte%l stan%ar% proce%ure in t(e case of petitionerKs vessels t(at t(e unloa%in* operations s(all start onl after t(at time. Conseuentl, un%er t(e fore*oin* circumstances, t(e victim Anacleto
MA((ARI +R. !s. CA FactsB (e passen*er :eepne %riven petitioner Alfre%o 4allari 5r. an% o=ne% (is copetitioner Alfre%o 4allari Sr. colli%e% =it( t(e %eliver van of respon%ent 9ulletin alon* t(e National 0i*(=a in 9aran*a San $alo, Dinalupi(an, 9ataan. (e impact cause% t(e :eepne to turn aroun% an% fall on its left si%e resultin* in in:uries to its passen*ers one of =(om =as &srael ees =(o eventuall %ie% %ue to t(e *ravit of (is in:uries. (e =i%o= of t(e victim, file% a complaint for %ama*es a*ainst petitioners an% also a*ainst 9&N, its %river 'eli@ An*eles, an% t(e N.<. Net(erlan%s &nsurance Compan. (e trial court foun% t(at t(e pro@imate cause of t(e collision =as t(e ne*li*ence of 'eli@ An*eles, %river of t(e 9ulletin %eliver van, consi%erin* t(e fact t(at t(e left front portion of t(e %eliver truc; %riven 'eli@ An*eles (it an% umpe% t(e left rear portion of t(e passen*er :eepne %riven Alfre%o 4allari 5r. 0ence, t(e trial court (el% t(at 9&N an% 'eli@ An*eles are :ointl an% severall liale. &t also %ismisse% t(e complaint a*ainst t(e ot(er %efen%ants Alfre%o 4allari Sr. an% Alfre%o 4allari 5r. ?n appeal t(e Court of Appeals mo%ifie% t(e %ecision of t(e trial court an% foun% no ne*li*ence on t(e part of An*eles an% conseuentl of (is emploer, respon%ent 9&N. &nstea%, t(e appellate court rule% t(at t(e collision =as cause% t(e sole ne*li*ence of petitioner Alfre%o 4allari 5r. =(o a%mitte% t(at imme%iatel efore t(e collision an% after (e
roun%e% a curve on t(e (i*(=a, (e overtoo; a 'iera =(ic( (a% stoppe% on (is lane an% t(at (e (a% seen t(e van %riven An*eles efore overta;in* t(e 'iera. 0ence t(is petition.
IssueB B(et(er or not petitioners are ne*li*ent. Ge$dB )es. (e Court of Appeals correctl foun%, t(at t(e collision occurre% imme%iatel after petitioner 4allari 5r. overtoo; a ve(icle in front of it =(ile traversin* a curve on t(e (i*(=a. (is act of overta;in* =as in clear violation of Sec. 1, pars. !a# an% !#, of A 136 as amen%e%, ot(er=ise ;no=n as (e an% ransportation an% raffic Co%e. Sec. %.
(e rule is settle% t(at a %river aan%onin* (is proper lane for t(e purpose of overta;in* anot(er ve(icle in an or%inar situation (as t(e %ut to see to it t(at t(e roa% is clear an% not to procee% if (e cannot %o so in safet. B(en a motor ve(icle is approac(in* or roun%in* a curve, t(ere is special necessit for ;eepin* to t(e ri*(t si%e of t(e roa% an% t(e %river %oes not (ave t(e ri*(t to %rive on t(e left (an% si%e relin* upon (avin* time to turn to t(e ri*(t if a car approac(in* from t(e opposite %irection comes into vie=. &n t(e instant case, (is o=n a%mission, petitioner 4allari 5r. alrea% sa= t(at t(e 9&N %eliver van =as comin* from t(e opposite %irection an% failin* to consi%er t(e spee% t(ereof since it =as still %ar; at +L// oKcloc; in t(e mornin* min%lessl occupie% t(e left lane an% overtoo; t=o ve(icles in front of it at a curve in t(e (i*(=a. Clearl, t(e pro@imate cause of t(e collision resultin* in t(e %eat( of &srael ees, a passen*er of t(e :eepne, =as t(e sole ne*li*ence of t(e %river of t(e passen*er :eepne, petitioner Alfre%o 4allari 5r., =(o rec;lessl operate% an% %rove (is :eepne in a lane =(ere overta;in* =as not allo=e% traffic rules. n%er Art. 218+ of t(e Civil Co%e, unless t(ere is proof to t(e contrar, it is presume% t(at a person %rivin* a motor ve(icle (as een ne*li*ent if at t(e time of t(e mis(ap (e =as violatin* a traffic re*ulation. As foun% t(e appellate court, petitioners faile% to present satisfactor evi%ence to overcome t(is le*al presumption. n%er Art. 17++ of t(e Civil Co%e, a common carrier is oun% to carr t(e passen*ers safel as far as (uman care an% foresi*(t can provi%e usin* t(e utmost %ili*ence of ver cautious persons =it( %ue re*ar% for all t(e circumstances. 4oreover, un%er Art. 17+6 of t(e Civil Co%e, in case of %eat( or in:uries to passen*ers, a common carrier is presume% to (ave een at fault or to (ave acte% ne*li*entl, unless it proves t(at it oserve% e@traor%inar %ili*ence. 'urt(er, pursuant to Art. 17+" of t(e same Co%e, it is liale for t(e %eat( of or in:uries to passen*ers t(rou*( t(e ne*li*ence or =illful acts of t(e formerKs emploees. (is liailit of t(e common carrier %oes not cease upon proof t(at it e@ercise% all t(e %ili*ence of a *oo% fat(er of a famil in t(e selection of its emploees. Clearl, t(e contract of carria*e, t(e carrier :eepne o=ne% 4allari Sr. assume% t(e e@press oli*ation to transport t(e passen*ers to t(eir %estination safel an% to oserve e@traor%inar %ili*ence =it( %ue re*ar% for all t(e circumstances, an% an in:ur or %eat( t(at mi*(t e suffere% its passen*ers is ri*(t a=a attriutale to t(e fault or ne*li*ence of t(e carrier.
&A?A+EN !s. CA
FactsB $etitioner =as c(ar*e% of 0omici%e (ru ec;less &mpru%ence, ein* t(en t(e %river an% person in c(ar*e of ural (ealt( nit 5eep, %rove alon* Suo 4unicipal oa%, Sa*a%a, 4ountain $rovince in a ne*li*ent, careless an% impru%ent manner. Sai% :eep fell over a precipice in t(e aovementione% place causin* t(ere t(e %eat( of lena A=ic(en. After trial, t(e petitioner =as foun% *uilt of t(e c(ar*e. (e %ecision =as affirme% in CA, (ence t(e instant petition.
IssueB B(et(er or not petitioner is entitle% to acuittal on t(e *roun% t(at t(e fin%in* of t(e Court of Appeals t(at t(e pro@imate cause of t(e %eat( of A=ic(en =as t(e petitionerKs ne*li*ence in %rivin* at an unreasonale spee% is openl contrar to t(e evi%ence of t(e prosecution.
Ge$dB )es. &t is ovious t(at t(e pro@imate cause of t(e tra*e% =as t(e s;i%%in* of t(e rear =(eels of t(e :eep an% not t(e unreasonale spee% of t(e petitioner ecause t(ere is no evi%ence on recor% to prove or support t(e fin%in* t(at t(e petitioner =as %rivin* at an unreasonale spee%. &t is a =ell ;no=n p(sical tact t(at cars ma s;i% on *reas or slipper roa%s, as in t(e instant case, =it(out fault on account of t(e manner of (an%lin* t(e car. S;i%%in* means partial or complete loss of control of t(e car un%er circumstances not necessaril implin* ne*li*ence. &t ma occur =it(out fault. No ne*li*ence as a matter of la= can, t(erefore, e c(ar*e% to t(e petitioner. &n fact, t(e moment (e felt t(at t(e rear =(eels of t(e :eep s;i%%e%, (e promptl %rove it to t(e left (an% si%e of t(e roa%, parallel to t(e slope of t(e mountain, ecause as (e sai%, (e =ante% to pla safe an% avoi% t(e eman;ment. n%er t(e particular circumstances of t(e instant case, t(e petitioner %river =(o s;i%%e% coul% not e re*ar%e% as ne*li*ent, t(e s;i%%in* ein* an unforeseen event, so t(at t(e petitioner (a% a vali% e@cuse for (is %eparture from (is re*ular course. (e ne*li*ence of t(e petitioner not (avin* een sufficientl estalis(e%, (is *uilt of t(e crime c(ar*e% (as not een proven eon% reasonale %out. 0e is, t(erefore, entitle% to acuittal.
CER,ANTE+ !s. CA FactsB $A issue% to t(e petitioner a roun% trip plane tic;et for 4anila0onoluluos An*eles0onolulu 4anila, =(ic( tic;et e@pressl provi%e% an e@pir of %ate of one ear from issuance, i.e., until 4arc( 27, 1""/. ?n 4arc( 23, 1""/, four %as efore t(e e@pir %ate of su:ect tic;et, t(e petitioner use% it. pon (is arrival in os An*eles on t(e same %a, (e imme%iatel oo;e% (is os An*eles4anila return tic;et =it( t(e $A office, an% it =as confirme% for t(e April 2, 1""/ fli*(t. pon learnin* t(at t(e same $A plane =oul% ma;e a stopover in San 'rancisco, an% consi%erin* t(at (e =oul% e t(ere on April 2, 1""/, petitioner ma%e arran*ements =it( $A for (im to oar% t(e fli*(t &n San 'rancisco instea% of oar%in* in os An*eles. ?n April 2, 1""/, =(en t(e petitioner c(ec;e% in at t(e $A counter in San 'rancisco, (e =as not allo=e% to oar%. (e $A personnel concerne% mar;e% t(e follo=in* notation on (is tic;etL &C N? ACC$D D $&A&?N ?'
IssueB B(et(er or not t(e act of t(e $A a*ents in confirmin* su:ect tic;et e@ten%e% t(e perio% of vali%it of petitionerKs tic;et.
Ge$dB No. Since t(e $A a*ents are not priv to t(e sai% A*reement an% petitioner ;ne= t(at a =ritten reuest to t(e le*al counsel of $A =as necessar, (e cannot use =(at t(e $A a*ents %i% to (is a%vanta*e. (e sai% a*ents, accor%in* to t(e Court of Appeals, acte% =it(out aut(orit =(en t(e confirme% t(e fli*(ts of t(e petitioner. n%er Article 1"8" of t(e Ne= Civil Co%e, t(e acts an a*ent eon% t(e scope of (is aut(orit %o not in% t(e principal, unless t(e latter ratifies t(e same e@pressl or implie%l. 'urt(ermore, =(en t(e t(ir% person !(erein petitioner# ;no=s t(at t(e a*ent =as actin* eon% (is po=er or aut(orit, t(e
principal cannot e (el% liale for t(e acts of t(e a*ent. &f t(e sai% t(ir% person is a=are of suc( limits of aut(orit, (e is to lame, an% is not entitle% to recover %ama*es from t(e a*ent, unless t(e latter un%ertoo; to secure t(e principalKs ratification. &n a=ar%in* moral %ama*es for reac( of contract of carria*e, t(e reac( must e =anton an% %elieratel in:urious or t(e one responsile acte% frau%ulentl or =it( malice or a% fait(. $etitioner ;ne= t(ere =as a stron* possiilit t(at (e coul% not use t(e su:ect tic;et, so muc( so t(at (e ou*(t a ac;up tic;et to ensure (is %eparture. S(oul% t(ere e a fin%in* of a% fait(, =e are of t(e opinion t(at it s(oul% e on t(e petitioner. B(at t(e emploees of $A %i% =as one of simple ne*li*ence. No in:ur resulte% on t(e part of petitioner ecause (e (a% a ac;up tic;et s(oul% $A refuse to accommo%ate (im =it( t(e use of su:ect tic;et. Neit(er can t(e claim for e@emplar %ama*es e up(el%. Suc( ;in% of %ama*es is impose% =a of e@ample or correction for t(e pulic *oo%, an% t(e e@istence of a% fait( is estalis(e%.
CA(A(A+ !s. CA FactsB $rivate respon%ent liza Sun*a, t(en a colle*e fres(man ma:orin* in $(sical %ucation at t(e Siliman niversit, too; a passen*er :eepne o=ne% an% operate% petitioner
IssueB S(oul% e petitioner e asolve% if (is contentions are consi%ere%O Ge$dB No. (ere is no asis for t(e contention t(at t(e rulin* in Civil Case No. 3"/, fin%in* Salva an% (is %river
common carriers =it( re*ar% to t(e safet of passen*ers as =ell as t(e presumption of ne*li*ence in cases of %eat( or in:ur to passen*ers. &n uasi%elict, t(e ne*li*ence or fault s(oul% e clearl estalis(e% ecause it is t(e asis of t(e action, =(ereas in reac( of contract, t(e action can e prosecute% merel provin* t(e e@istence of t(e contract an% t(e fact t(at t(e oli*or, in t(is case t(e common carrier, faile% to transport (is passen*er safel to (is %estination. &n case of %eat( or in:uries to passen*ers, Art. 17+6 of t(e Civil Co%e provi%es t(at common carriers are presume% to (ave een at fault or to (ave acte% ne*li*entl unless t(e prove t(at t(e oserve% e@traor%inar %ili*ence as %efine% in Arts. 1733 an% 17++ of t(e Co%e. (is provision necessaril s(ifts to t(e common carrier t(e ur%en of proof. No=, %i% t(e %river of :eepne carr Sun*a safel as far as (uman care an% foresi*(t coul% provi%e, usin* t(e utmost %ili*ence of ver cautious persons, =it( %ue re*ar% for all t(e circumstances as reuire% Art. 17++O Be %o not t(in; so. 'irst, t(e :eepne =as not properl par;e%, its rear portion ein* e@pose% aout t=o meters from t(e roa% s(oul%ers of t(e (i*(=a, an% facin* t(e mi%%le of t(e (i*(=a in a %ia*onal an*le. (e petitionerKs %river too; in more passen*ers t(an t(e allo=e% seatin* capacit of t(e :eepne. (ese are violations of t(e an% ransportation an% raffic Co%e. $etitioner s(oul% (ave foreseen t(e %an*er of par;in* (is :eepne =it( its o% protru%in* t=o meters into t(e (i*(=a. As a *eneral rule, moral %ama*es are not recoverale in actions for %ama*es pre%icate% on a reac( of contract for it is not one of t(e items enumerate% un%er Art. 221" of t(e Civil Co%e. As an e@ception, suc( %ama*es are recoveraleL !1# in cases in =(ic( t(e mis(ap results in t(e %eat( of a passen*er, as provi%e% in Art. 176, in relation to Art. 22/6!3# of t(e Civil Co%eE an% !2# in t(e cases in =(ic( t(e carrier is *uilt of frau% or a% fait(, as provi%e% in Art. 222/.&n t(is case, t(ere is no le*al asis for a=ar%in* moral %ama*es since t(ere =as no factual fin%in* t(e appellate court t(at petitioner acte% in a% fait( in t(e performance of t(e contract of carria*e.
PE+TAO !s. +*MA?AN# FactsB Ananias Sumaan* =as ri%in* a motorccle alon* t(e national (i*(=a in &li(an, aa*on, Ceu. i%in* =it( (im =as (is frien% 4anuel oma*os. As t(e came upon a :unction =(ere t(e (i*(=a connecte% =it( t(e roa% lea%in* to aa*on, t(e =ere (it a passen*er us %riven $estao an% o=ne% 4etro Ceu =(ic( (a% trie% to overta;e t(em, sen%in* t(e motorccle an% its passen*ers (urtlin* upon t(e pavement. Apart from t(e institution of criminal c(ar*es a*ainst $estao, espon%ent(eirs, file% t(is civil action for %ama*es a*ainst petitioners. (e cases =ere consoli%ate%. (e lo=er court foun% petitioners liale. Sai% %ecision =as affirme% CA, (ence t(is petition.
IssueB B(et(er or not petitioner $estao =as ne*li*ent Ge$dB )es. $etitioners conten% t(at $estao =as not un%er an oli*ation to slo= %o=n =(en (e overtoo; t(e motorccle, ecause t(e %ecease% (a% *iven =a to (im upon (earin* t(e us (orn. Seein* t(at t(e left si%e of t(e roa% =as clearl visile an% free of oncomin* traffic, $estao accelerate% (is spee% to pass t(e motorccle. 0avin* *iven =a to t(e us, t(e motorccle %river s(oul% (ave slo=e% %o=n until (e (a% een overta;en. (e furt(er conten% t(at t(e motorccle =as not in t(e mi%%le of t(e roa% nearest to t(e :unction ut =as on t(e inner lane. (is e@plains =( t(e %ama*es on t(e us =ere all on t(e ri*(t si%e t(e ri*(t en% of t(e umper an% t(e ri*(t portion of t(e ra%iator *rill =ere ent an% %ente%. SC %isa*ree% =it( t(is contention an% consi%ere% t(e fin%in*s of CA, ase% on t(e testimon of t(e =itnesses, =(erein, it =as foun% out t(at as t(e t=o ve(icles approac(e% t(e :unction, t(e victim raise% (is left arm to si*nal t(at (e =as turnin* left to aa*on, ut t(at t(e latter an% (is companion =ere t(ro=n off t(e motorccle after it =as umpe% t(e overspee%in* us. As a professional %river operatin* a pulic transport us, $estao s(oul% (ave anticipate% t(at overta;in* at a :unction =as a perilous maneuver an% s(oul% t(us (ave e@ercise% e@treme caution.
$etitioners also aver t(at t(e CA =as =ron* in attriutin* t(e acci%ent to a fault spee%ometer an% in implin* t(at t(e acci%ent coul% (ave een avoi%e% (a% t(is instrument een properl functionin*. (is contention (as no factual asis. n%er Articles 218/ an% 2176 of t(e Civil Co%e, o=ners an% mana*ers are responsile for %ama*es cause% t(eir emploees. B(en an in:ur is cause% t(e ne*li*ence of a servant or an emploee, t(e master or emploer is presume% to e ne*li*ent eit(er in t(e selection or in t(e supervision of t(at emploee. (is presumption ma e overcome onl satisfactoril s(o=in* t(at t(e emploer e@ercise% t(e care an% t(e %ili*ence of a *oo% fat(er of a famil in t(e selection an% t(e supervision of its emploee.
#I((ACO !s. MANI(A RAI(ROAD COMPAN? FactsB ieut. omas Gillaco, (usan% of t(e plaintiff, =as a passen*er in t(e earl mornin* train of t(e 4anila ailroa% Compan from Calama, a*una to 4anila. B(en t(e train reac(e% t(e $aco ailroa% station, milio Devesa, a train *uar% of t(e 4anila ailroa% Compan (appene% to e in sai% station =aitin* for t(e same train =(ic( =oul% ta;e (im to utuan Station, =(ere (e =as *oin* to report for %ut. milio Devesa (a% a lon* stan%in* personal *ru%*e a*ainst omas Gillaco, ecause of t(is, Devesa s(ot Gillaco =it( t(e carine furnis(e% to (im t(e 4anila ailroa% Compan for (is use as suc( train *uar%, upon seein* (im insi%e t(e train coac(. omas %ie%. Devesa =as convicte% of (omici%e. A complaint for %ama*es =as file% t(e victimJs =i%o=. Dama*es =ere a=ar%e% to t(e plaintiff, (ence t(e instant petition. AppellantKs contention is t(at, no liailit attac(es to it as emploer of t(e milio Devesa ecause t(e crime =as not committe% =(ile t(e slaer =as in t(e actual performance of (is or%inar %uties an% service an% t(at no ne*li*ence on appellantKs part =as s(o=n.
IssueB B(et(er or not appellant coul% e (el% liale for t(e acts of its emploee. Ge$dB No. B(ile a passen*er is entitle% to protection from personal violence t(e carrier or its a*ents or emploees, since t(e contract of transportation oli*ates t(e carrier to transport a passen*er safel to (is %estination, t(e responsiilit of t(e carrier e@ten%s onl to t(ose acts t(at t(e carrier coul% foresee or avoi% t(rou*( t(e e@ercise of t(e %e*ree of care an% %ili*ence reuire% of it. &n t(e present case, t(e act of t(e train *uar% of t(e 4anila ailroa% Compan in s(ootin* t(e passen*er !ecause of a personal *ru%*e nurture% a*ainst t(e latter since t(e 5apanese occupation# =as entirel unforseeale t(e 4anila ailroa% Co. (e latter (a% no means to ascertain or anticipate t(at t(e t=o =oul% meet, nor coul% it reasonal forsee ever personal rancor t(at mi*(t e@ist et=een eac( one of its man emploees an% an one of t(e t(ousan%s of eventual passen*ers ri%in* in its trains. (e s(ootin* in uestion =as t(erefore caso fortuito =it(in t(e %efinition of Art. 11/+ of t(e ol% Civil Co%e !=(ic( is t(e la= applicale#, ein* ot( unforeseeale an% inevitale un%er t(e *iven circumstancesE an% pursuant to estalis(e% %octrine, t(e resultin* reac( of t(e companKs contract of safe carria*e =it( t(e %ecease% =as e@cuse% t(ere.
MARANAN !s. PEREL FactsB o*elio Corac(ea, on ?ctoer 18, 1"6/, =as a passen*er in a ta@ica o=ne% an% operate% $ascual $erez =(en (e =as stae% an% ;ille% t(e %river, Simeon
IssueB B(et(er or not %efen%ant operators coul% e (el% liale for %ama*es
Ge$dB )es. Defen%antappellant relies solel on t(e rulin* enunciate% in Gillaco v. 4anila ailroa% Co., "7 $(il. 88, t(at t(e carrier is un%er no asolute liailit for assaults of its emploees upon t(e passen*ers. (e atten%ant facts an% controllin* la= of t(at case an% t(e one at ar are ver %ifferent (o=ever. &n t(e Gillaco case, t(e passen*er =as ;ille% outsi%e t(e scope an% t(e course of %ut of t(e *uilt emploee. No= (ere, t(e ;illin* =as perpetrate% t(e %river of t(e ver ca transportin* t(e passen*er, in =(ose (an%s t(e carrier (a% entruste% t(e %ut of e@ecutin* t(e contract of carria*e. &n ot(er =or%s, unli;e t(e Gillaco case, t(e ;illin* of t(e passen*er (ere too; place in t(e course of %ut of t(e *uilt emploee an% =(en t(e emploee =as actin* =it(in t(e scope of (is %uties. 4oreover, t(e Gillaco case =as %eci%e% un%er t(e provisions of t(e Civil Co%e of 188" =(ic(, unli;e t(e present Civil Co%e, %i% not impose upon common carriers asolute liailit for t(e safet of passen*ers a*ainst =ilful assaults or ne*li*ent acts committe% t(eir emploees. (e %eat( of t(e passen*er in t(e Gillaco case =as trul a fortuitous event =(ic( e@empte% t(e carrier from liailit. (e Civil Co%e provisions on t(e su:ect of Common Carriers are ne= an% =ere ta;en from An*lo American a=. (ere, t(e asis of t(e carrierKs liailit for assaults on passen*ers committe% its %rivers rests eit(er on !1# t(e %octrine of respon%eat superior or !2# t(e principle t(at it is t(e carrierKs implie% %ut to transport t(e passen*er safel. n%er t(e first, =(ic( is t(e minorit vie=, t(e carrier is liale onl =(en t(e act of t(e emploee is =it(in t(e scope of (is aut(orit an% %ut. &t is not sufficient t(at t(e act e =it(in t(e course of emploment onl. n%er t(e secon% vie=, up(el% t(e ma:orit an% also t(e later cases, it is enou*( t(at t(e assault (appens =it(in t(e course of t(e emploeeKs %ut. &t is no %efense for t(e carrier t(at t(e act =as %one in e@cess of aut(orit or in %isoe%ience of t(e carrierKs or%ers. (e carrierKs liailit (ere is asolute in t(e sense t(at it practicall secures t(e passen*ers from assaults committe% its o=n emploees. As can e *leane% from Art. 17+", t(e Civil Co%e of t(e $(ilippines evi%entl follo=s t(e rule ase% on t(e secon% vie=. At least t(ree ver co*ent reasons un%erlie t(is rule. !1# t(e special un%erta;in* of t(e carrier reuires t(at it furnis( its passen*er t(at full measure of protection affor%e% t(e e@ercise of t(e (i*( %e*ree of care prescrie% t(e la=, inter alia from violence an% insults at t(e (an%s of stran*ers an% ot(er passen*ers, ut aove all, from t(e acts of t(e carrierKs o=n servants c(ar*e% =it( t(e passen*erKs safetE !2# sai% liailit of t(e carrier for t(e servantKs violation of %ut to passen*ers, is t(e result of t(e formers confi%in* in t(e servantKs (an%s t(e performance of (is contract to safel transport t(e passen*er, %ele*atin* t(ere=it( t(e %ut of protectin* t(e passen*er =it( t(e utmost care prescrie% la=E an% !3# as et=een t(e carrier an% t(e passen*er, t(e former must ear t(e ris; of =ron*ful acts or ne*li*ence of t(e carrierKs emploees a*ainst passen*ers, since it, an% not t(e passen*ers, (as po=er to select an% remove t(em. Accor%in*l, it is t(e carrierKs strict oli*ation to select its %rivers an% similar emploees =it( %ue re*ar% not onl to t(eir tec(nical competence an% p(sical ailit, ut also, no less important, to t(eir total personalit, inclu%in* t(eir patterns of e(avior, moral fiers, an% social attitu%e. Applin* t(is strin*ent norm to t(e facts in t(is case, t(erefore, t(e lo=er court ri*(tl a%:u%*e% t(e %efen%ant carrier liale pursuant to Art. 17+" of t(e Civil Co%e. (e %ismissal of t(e claim a*ainst t(e %efen%ant %river =as also correct. $laintiffKs action =as pre%icate% on reac( of contract of carria*e7 an% t(e ca %river =as not a part t(ereto. 0is civil liailit is covere% in t(e criminal case =(erein (e =as convicte% final :u%*ment.
PGI(IPPINE NATIONA( RAI(JA?+ !s. CA FactsB Binifre%o upan*, (usan% of plaintiff, oar%e% a train of appellant at imanan, Camarines Sur, as a pain* passen*er oun% for 4anila. Due to some mec(anical %efect, t(e train stoppe% at Sipocot, Camarines Sur, for repairs. nfortunatel, upon passin* &am 9ri%*e at ucena, -uezon, Binifre%o upan* fell off t(e train resultin* in (is %eat(.(e train %i% not stop %espite t(e alarm raise% t(e ot(er passen*ers t(at someo% fell from t(e train. pon complaint file% osario t(e lo=er court after trial, (el% $N liale
for %ama*es for reac( of contract of carria*e. (e %ecision =as sustaine% t(e appellate court (ence t(e present petition, =(erein $N raise% for t(e first time, as a %efense, t(e %octrine of state immunit from suit. &t alle*e% t(at it is a mere a*enc of t(e $(ilippine *overnment =it(out %istinct or separate personalit of its o=n, an% t(at its fun%s are *overnmental in c(aracter an%, t(erefore, not su:ect to *arnis(ment or e@ecution.
IssueB B(et(er or not $N can raise t(e %efense of %octrine of state immunit from suit. Ge$dB No. (e $N =as create% un%er ep. Act 1+6, as amen%e%. Section of t(e sai% Act provi%esL (e $(ilippine national ail=as s(all (ave t(e follo=in* po=ersL a. o %o all suc( ot(er t(in*s an% to transact all suc( usiness %irectl or in%irectl necessar, inci%ental or con%ucive to t(e attainment of t(e purpose of t(e corporationE an% . Generall, to e@ercise all po=ers of a corporation un%er t(e Corporation a=. n%er t(e fore*oin* section, t(e $N (as all t(e po=ers, t(e c(aracteristics an% attriutes of a corporation un%er t(e Corporation a=. (ere can e no uestion t(en t(at t(e $N ma sue an% e sue% an% ma e su:ecte% to court processes :ust li;e an ot(er corporation. No=, is $N ne*li*entO )es. (e appellate court foun%, t(e petitioner %oes not %en, t(at t(e train oar%e% t(e %ecease% Binifre%o upan* =as so overcro=%e% t(at (e an% man ot(er passen*ers (a% no c(oice ut to sit on t(e open platforms et=een t(e coac(es of t(e train. &t is li;e=ise un%ispute% t(at t(e train %i% not even slo= %o=n =(en it approac(e% t(e &am 9ri%*e =(ic( =as un%er repair at t(e time, Neit(er %i% t(e train stop, %espite t(e alarm raise% ot(er passen*ers t(at a person (a% fallen off t(e train at lam 9ri%*e. (e petitioner (as t(e oli*ation to transport its passen*ers to t(eir %estinations an% to oserve e@traor%inar %ili*ence in %oin* so. Deat( or an in:ur suffere% an of its passen*ers *ives rise to t(e presumption t(at it =as ne*li*ent in t(e performance of its oli*ation un%er t(e contract of carria*e. (us, as correctl rule% t(e respon%ent court, t(e petitioner faile% to overt(ro= suc( presumption of ne*li*ence =it( clear an% convincin* evi%ence. 9ut =(ile petitioner faile% to e@ercise e@traor%inar %ili*ence as reuire% la=, it appears t(at t(e %ecease% =as c(ar*eale =it( contriutor ne*li*ence. Since (e opte% to sit on t(e open platform et=een t(e coac(es of t(e train, (e s(oul% (ave (el% ti*(tl an% tenaciousl on t(e upri*(t metal ar foun% at t(e si%e of sai% platform to avoi% fallin* off from t(e spee%in* train. Suc( contriutor ne*li*ence, =(ile not e@emptin* t(e $N from liailit, nevert(eless :ustifie% t(e %eletion of t(e amount a%:u%icate% as moral %ama*es an% e@emplar %ama*es. @emplar %ama*es ma e allo=e% onl in cases =(ere t(e %efen%ant acte% in a =anton, frau%ulent, rec;less, oppressive or malevolent manner.
I+AAC !s. A.(. AMMEN TRAN+. CO. FactsB $laintiff oar%e% %efen%antJs us as pain* passen*er from Ala. (e us colli%e% =it( a pic;up truc; =(ic( =as comin* from opposite %irection trin* to s=erve from a pile of *ravel. As a result, (is left arm =as completel severe%. $laintiff c(ose to (ol% %efen%ant liale on its contractual oli*ation. $laintiff rou*(t an action for %ama*es =(ic( t(e lo=er court %ismisse% (ol%in* t(e %river of t(e pic;up car ne*li*ent an% not t(at of t(e us.
IssueB B(et(er or not t(e common carrier is liale. Ge$dB (e us =as runnin* at a mo%erate spee%. (e %river of t(e us upon t(e spee%in* pic;up truc; s=erve% t(e us to t(e ver e@treme ri*(t of t(e roa%. Sai% %river =oul% not move t(e us furt(er =it(out en%an*erin* t(e safet of (is passen*ers. Not=it(stan%in* all t(ese efforts, t(e rear left si%e =as (it. (is fin%in* of t(e lo=er court =as sustaine%. Also, of t(e carrierJs emploee is confronte% =it( a su%%en emer*enc, (e is not (el% to t(e same %e*ree of care (e =oul% ot(er=ise, (e reuire% in t(e asence of suc( emer*enc.
9 placin* (is left arm on t(e =in%o=, (e is *uilt of contriutor ne*li*ence cannot relieve t(e carrier ut can onl re%uce its liailit !A. 1762#, t(is is a circumstance =(ic( furt(er militates a*ainst plaintiffJs position. &t is a prevailin* rule t(at it is ne*li*ence per se for passen*ers on a railroa% to protru%e an part of (is o% an% t(at no recover can e (a% for an in:ur.I
&ACGE(OR EPRE++ !s.CA FactsB (e us o=ne% $etitioners came from Davao Cit on its =a to Ca*aan %e ?ro Cit passin* 9utuan Cit. B(ile at aonaon, 9utuan Cit, t(e us pic;e% up a passen*er, t(at aout fifteen minutes later, a passen*er at t(e rear portion su%%enl stae% a $C sol%ier =(ic( cause% commotion an% panic amon* t(e passen*ers. B(en t(e us stoppe%, passen*ers ?rnominio 9eter an% Narcisa autraut =ere foun% lin* %o=n t(e roa%, t(e former alrea% %ea% as a result of (ea% in:uries an% t(e latter also sufferin* from severe in:uries =(ic( cause% (er %eat( later. (e passen*er assailant ali*(te% from t(e us an% ran to=ar% t(e us(es ut =as ;ille% t(e police. (ereafter, t(e (eirs of ?rnominio 9eter an% Narcisa autraut, private respon%ents (erein file% a complaint for sum of mone a*ainst 9ac(elor @press, &nc., its alle*e% o=ner an% t(e %river ivera. (e lo=er court %ismisse% t(e complaint. CA reverse% t(e %ecision, (ence t(e instant petition.
IssueB B(et(er or not petitioner is ne*li*ent. Ge$dB )es. (e liailit, if an, of t(e petitioners is anc(ore% on culpa contractual or reac( of contract of carria*e. Art. 1732, 1733, 17++ an% 17+6 are applicale. (ere is no uestion t(at 9ac(elor is a common carrier. 0ence, 9ac(elor is oun% to carr its passen*ers safel as far as (uman care an% foresi*(t can provi%e usin* t(e utmost %ili*ence of ver cautious persons, =it( a %ue re*ar% for all t(e circumstances. &n t(e case at ar, ?rnominio 9eter an% Narcisa autraut =ere passen*ers of a us elon*in* to 9ac(elor an%, =(ile passen*ers of t(e us, suffere% in:uries =(ic( cause% t(eir %eat(. Conseuentl, pursuant to Article 17+6 of t(e Civil Co%e, 9ac(elor is presume% to (ave acte% ne*li*entl unless it can prove t(at it (a% oserve% e@traor%inar %ili*ence in accor%ance =it( Articles 1733 an% 17++ of t(e Ne= Civil Co%e. 9ac(elor %enies liailit for t(e %eat( of 9eter an% autraut in t(at t(eir %eat( =as cause% a t(ir% person =(o =as eon% its control an% supervision. &n effect, t(e petitioner, in or%er to overcome t(e presumption of fault or ne*li*ence un%er t(e la=, states t(at t(e ve(icular inci%ent resultin* in t(e %eat( of passen*ers 9eter an% autraut =as cause% force ma:eure or caso fortuito over =(ic( t(e common carrier %i% not (ave an control. (e runnin* amuc; of t(e passen*er =as t(e pro@imate cause of t(e inci%ent as it tri**ere% off a commotion an% panic amon* t(e passen*ers suc( t(at t(e passen*ers starte% runnin* to t(e sole e@it s(ovin* eac( ot(er resultin* in t(e fallin* off t(e us passen*ers 9eter an% autraut causin* t(em fatal in:uries. (e su%%en act of t(e passen*er =(o stae% anot(er passen*er in t(e us is =it(in t(e conte@t of force ma:eure. 0o=ever, in or%er t(at a common carrier ma e asolve% from liailit in case of force ma:eure, it is not enou*( t(at t(e acci%ent =as cause% force ma:eure. (e common carrier must still prove t(at it =as not ne*li*ent in causin* t(e in:uries resultin* from suc( acci%ent. &n t(is case, 9ac(elor =as ne*li*ent. Consi%erin* t(e factual fin%in*s of t(e Court of Appealst(e us %river %i% not imme%iatel stop t(e us at t(e (ei*(t of t(e commotionE t(e us =as spee%in* from a full stopE t(e victims fell from t(e us %oor =(en it =as opene% or *ave =a =(ile t(e us =as still runnin*E t(e con%uctor panic;e% an% le= (is =(istle after people (a% alrea% fallen off t(e usE an% t(e us =as not properl euippe% =it( %oors in accor%ance =it( la=it is clear t(at t(e petitioners (ave faile% to overcome t(e presumption of fault an% ne*li*ence foun% in t(e la= *overnin* common carriers. (e petitionersK ar*ument t(at t(e petitioners are not insurers of t(eir passen*ers %eserves no merit in vie= of t(e failure of t(e petitioners to prove t(at t(e %eat(s of t(e t=o passen*ers =ere e@clusivel %ue to force ma:eure an% not to t(e failure of t(e petitioners
to oserve e@traor%inar %ili*ence in transportin* safel t(e passen*ers to t(eir %estinations as =arrante% la=.
FORT*NE EPRE++ INC. !s.CA FactsB A us of petitioner fi*ure% in an acci%ent =it( a :eepne in aus=a*an, anao %el Norter, resultin* in t(e %eat( of several passen*ers of t(e :eepne, inclu%in* t=o 4aranaos. A constaular a*ent investi*ate% an% foun% out t(at t(e o=ner of t(e :eepne =as a 4aranao an% t(at certain 4aranaos =ere plannin* to ta;e reven*e on t(e petitioner urnin* some of its uses. (e operations mana*er of petitioner =as a%vise% to ta;e precautionar measures. 'our %as after t(e acci%ent, t(ree arme% 4aranaos =(o preten%e% to e passen*ers seize% a us petitioner oun% for &li*an Cit an% set it on fire. Att. ali Caoron*, =(ose (eirs are private respon%ents (erein =as a passen*er of t(e us an% =as s(ot an% ;ille% %urin* t(e inci%ent. (e private respon%ents rou*(t t(is suit for reac( of contract of carria*e. Complaint =as %ismisse% in t(e lo=er court ut its %ecision =as reverse% in CA, (ence t(e instant petition, =it( petitioners contention t(at t(e acts of t(e 4aranaos is caso fortuito.
IssueB Bas t(ere reac( of contract of carria*eO Ge$dB )es. Art. 1763 of t(e Civil Co%e provi%es t(at a common carrier is responsile for in:uries suffere% a passen*er on account of =ilfull acts of ot(er passen*ers, if t(e emploees of t(e common carrier coul% (ave prevente% t(e act t(rou*( t(e e@ercise of t(e %ili*ence of a *oo% fat(er of a famil. &n t(e present case, it is clear t(at ecause of t(e ne*li*ence of petitionerKs emploees, t(e seizure of t(e us 4anan**olo an% (is men =as ma%e possile. Despite =arnin* t(e $(ilippine Constaular at Ca*aan %e ?ro t(at t(e 4aranaos =ere plannin* to ta;e reven*e on t(e petitioner urnin* some of its uses an% t(e assurance of petitionerKs operation mana*er, Dios%a%o 9ravo, t(at t(e necessar precautions =oul% e ta;en, petitioner %i% not(in* to protect t(e safet of its passen*ers. 0a% petitioner an% its emploees een vi*ilant t(e =oul% not (ave faile% to see t(at t(e malefactors (a% a lar*e uantit of *asoline =it( t(em. n%er t(e circumstances, simple precautionar measures to protect t(e safet of passen*ers, suc( as fris;in* passen*ers an% inspectin* t(eir a**a*es, preferal =it( nonintrusive *a%*ets suc( as metal %etectors, efore allo=in* t(em on oar% coul% (ave een emploe% =it(out violatin* t(e passen*erKs constitutional ri*(ts. $etitioner invo;es t(e rulin* in $ilapil v. Court of Appeals, an% De Guzman v. Court of Appeals, in support of its contention t(at t(e seizure of its us t(e assailants constitutes force ma:eure. &n $ilapil v. Court of Appeals, it =as (el% t(at a common carrier is not liale for failin* to install =in%o= *rills on its uses to protect t(e passen*ers from in:uries cause roc;s (urle% at t(e us la=less elements. ?n t(e ot(er (an%, in De Guzman v. Court of Appeals, it =as rule% t(at a common carriers is not responsile for *oo%s lost as a result of a roer =(ic( is atten%e% *rave or irresistale t(reat, violence, or force. &t is clear t(at t(e cases of $ilapil an% De Guzman %o not appl to t(e prensent case. Art. 17++ of t(e Civil Co%e provi%es t(at a common carrier is oun% to carr t(e passen*ers as far as (uman care an% foresi*(t can provi%e, usin* t(e utmost %ili*ence of ver cautious persons, =it( %ue re*ar% for all t(e circumstances. (us, =e (el% in $ilapil an% De Guzman t(at t(e respon%ents t(erein =ere not ne*li*ent in failin* to ta;e special precautions a*ainst t(reats to t(e safet of passen*ers =(ic( coul% not e foreseen, suc( as tortious or criminal acts of t(ir% persons. &n t(e present case, t(is factor of unforeseeailit !t(e secon% reuisite for an event to e consi%ere% force ma:eure# is lac;in*. As alrea% state%, %espite t(e report of $C a*ent Generalao t(at t(e 4aranaos =ere plannin* to urn some of petitionerKs uses an% t(e assurance of petitionerKs operation mana*er !Dios%a%o 9ravo# t(at t(e necessar precautions =oul% e ta;en, not(in* =as reall %one petitioner to protect t(e safet of passen*ers. (e petitioner conten%s t(at Att. Caoron* =as *uilt of contriutor ne*li*ence in returnin* to t(e us to retrieve somet(in*. 9ut Att. Caoron* %i% not act rec;lessl. &t s(oul% e pointe% out t(at t(e inten%e%
tar*ets of t(e violence =ere petitioners an% its emploees, not its passen*ers. (e assailantKs motive =as to retaliate for t(e loss of life of t=o 4aranaos as a result of t(e collision et=een petitionerKs us an% t(e :eepne in =(ic( t(e t=o 4aranaos =ere ri%in*. 4anan**olo, t(e lea%er of t(e *roup =(ic( (a% (i:ac;e% t(e us, or%ere% t(e passen*ers to *et off t(e us as t(e inten%e% to urn it an% its %river. (e arme% men actuall allo=e% Att. Caoron* to retrieve somet(in* from t(e us. B(at apparentl an*ere% t(em =as (is attempt to (elp t(e %river of t(e us plea%in* for (is life. 0e =as plain* t(e role of t(e *oo% Samaritan. Certainl, t(is act cannot e consi%ere% an act of ne*li*ence, let alone rec;lessness.
III. DAMAGES A. Ac#%al&Co'(ena#or$ Da'age CARIA#A !s. (A#*NA TA?A&A+ &*+ COMPAN? FactsB %*ar%o Caria*a, a fourt(ear me%ical stu%ent of t(e niversit of Santos omas =as a passen*er in one of t(e uses of 9, =(en it umpe% a*ainst t(e en*ine of a train passin* , =(en it reac(e% t(at part of t(e $olacion of 9a, a*una, =(ere t(e national (i*(=a crosse% a railroa% trac;. (e front part of t(e o% of t(e us =as =rec;e%, t(e %river of t(e us %ie%, an% man passen*ers inclu%in* %*ar%o =ere in:ure%. (e 9 pai% t(e sum of $16,"6.+ for all t(e (ospital, me%ical an% miscellaneous e@penses incurre% from 5une 18, 1"+2 to April 1"+3. 'rom 5anuar 1+, 1"+3 up to April of t(e same ear %*ar%o stae% in a private (ouse in -uezon Cit, t(e 9 (avin* a*ree% to *ive (im a susistence allo=ance of $1/.// %ail %urin* (is convalescence. (e present action =as file% to recover from t(e 9 an% t(e 4 Co., t(e total sum of $312,///.// as actual, compensator, moral an% e@emplar %ama*es, an% for %*ar%oJs parents, t(e sum of $18,///.// in t(e same concepts. (e 9 %isclaime% liailit claimin* t(at t(e acci%ent =as %ue to t(e ne*li*ence of its co%efen%ant, t(e 4anila ailroa% Compan, for not provi%in* a crossin* ar at t(e point =(ere t(e national (i*(=a crosse% t(e rail=a trac;, an% for t(is reason file% t(e correspon%in* cross claim a*ainst t(e latter compan to recover t(e total sum of $18,1".7+ representin* t(e e@penses pai% to %*ar%o. (e 4anila ailroa% Compan, in turn, %enie% liailit upon t(e complaint an% crossclaim, alle*in* t(at it =as t(e rec;less ne*li*ence of t(e us %river t(at cause% t(e acci%ent. (e lo=er court (el% t(at it =as t(e ne*li*ence of t(e us %river t(at cause% t(e acci%ent an%, as a result, ren%ere% :u%*ment sentencin* t(e 9 to pa %*ar%o t(e sum of $1/,"/.// as compensator %ama*es, =it( interest at t(e le*al rate from t(e filin* of t(e coinplaint, an% %ismissin* t(e crossclaim a*ainst t(e 4anila ailroa% Compan. 'rom t(is %ecision t(e Caria*as an% t(e 9 appeale%.(e Caria*as claim t(at t(e trial court erre%L in a=ar%in* onl $1/,"/.// as compensator %ama*es to %*ar%oE in not a=ar%in* t(em actual an% moral %ama*es, an% in not sentencin* appellant 9 to pa attorneKs fees.
IssueB B?N petitioners are entitle% to an increase in compensator %ama*es, an% for actual an% moral %ama*es, as =ell as attornes fees.
Ge$dB (e fin%in*s of t(e trial court =as sustaine%. 'irstl, t(e train =(istle (a% een soun%e% several times efore it reac(e% t(e crossin*E secon%l, t(at anot(er 9 us =(ic( arrive% at t(e crossin* a(ea% of t(e one =(ere %*ar%o =as a passen*er, pai% (ee% to t(e =arnin* an% stoppe% efore t(e crossin*.
pon t(e =(ole evi%ence on t(e matter, t(e lo=er court foun% t(at t(e removal of t(e ri*(t frontal loe of t(e rain of %*ar%o re%uce% (is intelli*ence aout +/E t(at %ue to t(e replacement of t(e ri*(t frontal one of (is (ea% =it( a tantalum plate %*ar%o (as to lea% a uite an% retire% life ecause if t(e tantalum plate is presse% in or %ente% it =oul% cause (is %eat(. (e impression one *at(ers from t(is evi%ence is t(at, as a result of t(e p(sical in:uries suffere% %*ar%o Caria*a, (e is no= in a (elpless con%ition, virtuall an invali%, ot( p(sicall an% mentall. Appellant 9 a%mits t(at un%er Art. 22/1 of t(e Civil Co%e t(e %ama*es for =(ic( t(e oli*or, *uilt of a reac( of contract ut =(o acte% in *oo% fait(, is liale s(all e t(ose t(at are t(e natural an% proale conseuences of t(e reac( an% =(ic( t(e parties (a% foreseen or coul% (ave reasonal foreseen at t(e time t(e oli*ation =as constitute%, provi%e% suc( %ama*es, accor%in* to Art. 21"" of t(e same Co%e, (ave een %ul prove%. pon t(is premise it claims t(at onl t(e actual %ama*es suffere% %*ar%o consistin* of me%ical, (ospital an% ot(er e@penses in t(e total sum of $17,71".7+ are =it(in t(is cate*or. Be are of t(e opinion (o=ever, t(at t(e income =(ic( %*ar%o coul% earn if (e s(oul% finis( t(e me%ical course an% pass t(e correspon%in* oar% e@aminations must e %eeme% to e =it(in t(e same cate*or ecause t(e coul% (ave reasonal een foreseen t(e parties at t(e time (e oar%e% t(e us. pon consi%eration of all t(e facts t(is Court is of t(e opinion, an% so (ol%s, t(at t(e compensator %ama*es a=ar%e% to petitioner s(oul% e increase% to $2+,///.//.(e claim for moral %ama*es an% attorneKs fees is %enie%. Article 221" of t(e Civil Co%e enumerates t(e instances =(en moral %ama*es ma e covere% an% t(e case un%er consi%eration %oes not fall un%er an one of t(em. (e present action cannot come un%er $ara*rap( 2 of sai% article ecause it is not one of uasi%elict an% cannot e consi%ere% as suc( ecause of t(e pree@istin* contractual relation et=een t(e a*una 9 an% %*ar%o. Neit(er coul% 9 e (el% liale to pa moral %ama*es un%er Article 222/ of t(e Civil Co%e on account of reac( of its contract of carria*e ecause it %i% not act frau%ulentl or in a% fait(. 9 (a% e@ercise% %ue %ili*ence in t(e selection an% supervision of its emploees li;e t(e %rivers of its uses in connection =it( t(e %isc(ar*e of t(eir %uties an% so it must e consi%ere% an oli*or in *oo% fait(. $etitioner is not entitle% to recover attorneKs fees, ecause t(is case %oes not fall un%er an of t(e instances enumerate% in Article 22/8 of t(e Civil Co%e.
,I((A RE? TRAN+IT INC. !s. CA FactsB An &zuzu 'irst Class passen*er us o=ne% an% operate% t(e petitioner left in*aen, $an*asinan, for 4anila. Amon* its pain* passen*ers =as t(e %ecease%, $olicronio -uintos, 5r. B(en t(e ve(icle =as nearin* t(e Sa%saran 9ri%*e on t(e national (i*(=a in arrio Sto. Domin*o, municipalit of 4inalin, $ampan*a, it frontall (it t(e rear si%e of a ullcart fille% =it( (a. As a result t(e en% of a amoo pole place% on top of t(e (aloa% an% tie% to t(e cart to (ol% it in place, (it t(e ri*(t si%e of t(e =in%s(iel% of t(e us. (e protru%in* en% of t(e amoo pole, aout 8 feet lon* from t(e rear of t(e ullcart, penetrate% t(rou*( t(e *lass =in%s(iel% an% lan%e% on t(e face of %ecease%, =(ic( cause% several =oun%s. Not=it(stan%in* t(e me%ical assistance, t(e -uintos %ie%. (e private respon%ents, rou*(t t(is action a*ainst petitioner for reac( of t(e contract of carria*e to recover t(e a**re*ate sum of $63,7+/.// as %ama*es, inclu%in* attorneKs fees. Sai% petitioner conten%e% t(at t(e mis(ap =as %ue to a fortuitous event, ut t(is pretense =as re:ecte% t(e trial court an% t(e Court of Appeals, ot( of =(ic( foun% t(at t(e acci%ent an% t(e %eat( of $olicronio (a% een %ue to t(e ne*li*ence of t(e us %river. 0ence t(e instant petition.
IssueB Di% CA erre% in its a=ar% of t(e %ama*es to t(e (eirs of -uintosO Ge$dB No. $etitioner maintains t(at t(e lo=er courts (a% erre% in placin* t(e life e@pectanc of -uintos at 331F3, (e ein* over 2" ears of a*e at t(e time of (is %emise an% in not actin* in accor%ance =it( Alcantara v. Surro in =(ic( t(e %ama*es =ere compute% on a four ear asis, %espite t(e fact t(at t(e victim
t(erein =as 3" ears ol%, at t(e time of (is %eat(, an% (a% a life e@pectanc of 28."/ ears. (e case cite% is not, (o=ever, controllin* in t(e one at ar. &n t(e Alcantara case, none of t(e parties (a% uestione% t(e propriet of t(e fourear asis a%opte% t(e trial court in ma;in* its a=ar% of %ama*es. 9ot( parties appeale%, ut onl as re*ar%s t(e amount t(ereof. &n a%%ition, t(e case (a% not t(ere lai% %o=n an rule on t(e len*t( of time to e use% in t(e computation of %ama*es. &t even %eclare% Ht(at t(e %etermination of t(e in%emnit to e a=ar%e% to t(e (eirs of a %ecease% person (as t(erefore no fi@e% asis. 4uc( is left to t(e %iscretion of t(e court consi%erin* t(e moral an% material %ama*es involve%, an% so it (as een sai% t(at t(ere can e no e@act or uniform rule for measurin* t(e value of a (uman life an% t(e measure of %ama*es cannot e arrive% at precise mat(ematical calculation, ut t(e amount recoverale %epen%s on t(e particular facts an% circumstances of eac( case. (e life e@pectanc of t(e %ecease% or of t(e eneficiar, =(ic(ever is s(orter, is an important f actor.I (us, life e@pectanc is, not onl relevant, ut, also, an important element in fi@in* t(e amount recoverale private respon%ents (erein. Alt(ou*( it is not t(e sole element %eterminative of sai% amount, no co*ent reason (as een *iven to =arrant its %isre*ar% an% t(e a%option, in t(e case at ar, of a purel aritrar stan%ar%, suc( as a fourear rule. &n s(ort, t(e Court of Appeals (as not erre% in asin* t(e computation of petitionerKs liailit upon t(e life e@pectanc of $olicronio -uintos, 5r. Bit( respect to t(e rate at =(ic( t(e %ama*es s(all e compute%, petitioner impu*ns t(e %ecision appeale% from upon t(e *roun% t(at t(e %ama*es a=ar%e% t(erein =ill (ave to e pai% no=, =(ereas most of t(ose sou*(t to e in%emnifie% =ill e suffere% ears later. (is ar*ument is asicall true, an% t(is is, per(aps, one of t(e reasons =( t(e Alcantara case points out t(e asence of a fi@e% asis for t(e ascertainment of t(e %ama*es recoverale in liti*ations li;e t(e one at ar. 5ust t(e same, t(e force of t(e sai% ar*ument of petitioner (erein is offset t(e fact t(at, alt(ou*( pament of t(e a=ar% in t(e case at ar =ill (ave to ta;e place upon t(e finalit of t(e %ecision t(erein, t(e liailit of petitioner (erein (a% een fi@e% at t(e rate onl of $2,18.// a ear, =(ic( is t(e annual salar of $olicronio -uintos, 5r. at t(e time of (is %eat(, as a oun* trainin* assistant in t(e 9acnotan Cement &n%ustries, &nc. &n ot(er =or%s, unli;e t(e Alcantara case, on =(ic( petitioner relies, t(e lo=er courts %i% not consi%er, in t(e present case, $olicronioKs potentialit an% capacit to increase (is future income. &n%ee%, upon t(e conclusion of (is trainin* perio%, (e =as suppose% to (ave a etter :o an% e promote% from time to time, an%, (ence, to earn more, if not consi%erin* t(e *ro=in* importance of tra%e, commerce an% in%ustr an% t(e concomitant rise in t(e income level of officers an% emploees t(erein muc( more.
PAN AMERICAN JOR(D AIRJA?+ INC. !s. IAC FactsB $rivate respon%ent eofista $. initi*an, file% a complaint a*ainst petitioner for %ama*es arisin* from %efen%antKs alle*e% refusal to accommo%ate (er on $an Am 'li*(t No. 31 from Sto. Domin*o, epulica Dominica to San 5uan, $uerto ico not=it(stan%in* t(e fact t(at s(e possesse% a confirme% plane tic;et purc(ase% from $an AmJs ?ffice at Sto. Domin*o an% t(us causin* (er to suffer mental an*uis(, serious an@iet, esmirc(e% reputation, =oun%e% feelin*s an% social (umiliation S(e prae% t(at s(e e a=ar%e% moral %ama*es of $+//,///.//, e@emplar %ama*es of $2//,///.//, attorneKs fees of $1//,///.// an% actual %ama*es sustaine% (er in t(e amount of SM1,+6.1+. Defen%ant %enie% t(at plaintiff =as a confirme% passen*er since t(e tic;et issue% to (er =as on an open space asis =(ic( meant t(at s(e coul% onl e accommo%ate% if an of t(e confirme% passen*ers faile% to s(o= up at t(e airport efore %eparture. (e lo=er court ren%ere% :u%*ment in favor of plaintiff an% a=ar%e% t(e amount of %ama*es as prae% for. Sai% %ecision =as affirme% (ence t(e instant petition.
IssueB B(et(er or not t(e a=ar% of %ama*es =as proper. Ge$dB )es, ut su:ect to mo%ifications. 'in%in*s of fact s(o= t(at plaintiff, a usiness=oman an% a multimillionaire in (er o=n ri*(t as evi%ence% !proprietor of Sampa*uita estaurant, Ne= )or; Cit SAE
reasurer of t(e 4olave Development Corp., $(il., proprietor of Cavite 0ouse(ol% Appliances an% o=enaKs 0an%icraft, $(il.#, =as on a usiness trip =it( a $anAm tic;et. B(ile in Sto. Domin*o, after tal;in* t(ru t(e telep(one =it( a certain 4rs. iliet( Barner, t(e former sai% t(at s(e !plaintiff# must e in San 5uan t(at same %a, to si*n (er contract or lose it. $laintiff e@pecte% to ma;e a profit of M1,/// in sai% contract ut since s(e =asnJt ale to oar% t(e fli*(t, sai% profit =as lost. ?t(er instances =(ic( cause% moral %ama*e to t(e plaintiff are t(e follo=in*L 1. B(ile plaintiff =as stan%in* in line preparator to oar%in* t(e aircraft, ene Nolasco, a $an Am emploee or%ere% (er in a lou% voice to step out of line ecause (er tic;et =as not confirme% to (er consternation an% emarrassment in t(e presence of several people =(o (ear% an% or%er. Despite (er $leas s(e =as not allo=e% to oar% t(e aircraft. An% as if to a%% insult to in:ur, s(e sa= t(at (er seat =as *iven to a =(ite man. 2. B(en t(e plane too; off =it(out (er ut =it( (er lu**a*e on oar%. S(e =as force% to return to (er (otel =it(out an lu**a*e muc( less an e@tra %ress. &t =as a *oo% t(in* t(at t(e 0otel people rememere% (er ecause t(e %o not usuall accommo%ate female *uests, =it(out an lu**a*e to sta in t(e (otel. B(ile normall, (otel accommo%ation =as pai% efore %eparture, plaintiff =as ma%e to pa t(e room accommo%ation petition in a%vance. &t is clear from t(e evi%ence t(at %efen%ant issue% a $assen*er ic;et an% 9a**a*e C(ec; =it( assi*ne% seat an% t(e correspon%in* pass an% a**a*e claim smol. $laintiff =as ma%e to pa t(e fare an% terminal fee. At t(e immi*ration section, plaintiffKs passport =as stampe% accor%in*l. $laintiffKs name =as inclu%e% in t(e passen*er manifest. An% t(ese s(o= t(at plaintiff =as in%ee% a confirme% passen*er of %efen%antKs 'li*(t 31 for San 5uan. (ere =as, t(erefore, a contract or carria*e perfecte% et=een plaintiff an% %efen%ant for t(e latter to ta;e plaintiff to (er place of %estination. 9 refusin* to accommo%ate plaintiff in sai% fli*(t, %efen%ant (a% =illfull an% ;no=in*l violate% t(e contract of carria*e an% faile% to rin* t(e plaintiff to (er place of %estination un%er its contract =it( plaintiff. 9a% fait( =as also present. Self enric(ment or fraternal interest an% not personal ill =ill ma (ave een t(e motive of %efen%ant, ut it is malice nevert(eless. (e fact t(at plaintiff =as or%ere% out un%er some prete@t in or%er to accommo%ate a =(ite man in an airline o=ne% an American firm =it( a reputation for umpin* off non Caucasian to accommo%ate =(ites is ver re*rettale. Defen%ant (avin* reac(e% its contract =it( plaintiff in a% fait(, it is not error to (ave a=ar%e% e@emplar %ama*es. (e rational e(in% e@emplar or corrective %ama*es is, as t(e name implies, to provi%e an e@ample or correction for pulic *oo% . &n vie= of it nature, it s(oul% e impose% in suc( amount as to sufficientl an% effectivel %eter similar reac( of contract in t(e future %efen%ant an% ot(er airlines. An a=ar% of attorneKs fees is also in or%er, (avin* foun% a% fait( on t(e part of %efen%ant. Be elieve, (o=ever t(e amount of some %ama*es a=ar%e% to e e@oritantL Be t(erefore re%uce t(e moral an% e@emplar %ama*es to t(e comine% total sum of =o 0un%re% (ousan% !$2//,///.//# $esos an% t(e attorneKs fees to =ent (ousan% !$2/,///.//# $esos. (e a=ar% of actual %ama*es in t(e amount of ?ne (ousan% 'ive 0un%re% 'ort Si@ American %ollars an% fifteen cents !SM1,+6.1+# compute% at t(e e@c(an*e rate prevailin* at t(e time of pament is (ere retaine% an% *rante%.
#ATCGA(IAN !s. DE(IM FactsB enal%a Gatc(alian oar%e% respon%entJs minius at a point in Arin*a, a nion oun% for 9auan*. B(ile t(e us =as runnin* alon* t(e (i*(=a, a Hsnappin* soun%I =as su%%enl (ear% at one part of t(e us an% s(ortl t(ereafter, t(e ve(icle umpe% a cement flo=er pot on t(e si%e of t(e roa%, turne%
turtle an% fell into t(e %itc(. pon me%ical e@amination, petitioner =as foun% to (ave sustaine% p(sical in:uries on t(e le*, arm an% fore(ea%.
IssueB &s petitioner entitle% to actual an% compensator %ama*esO Ge$dB )es. A person is entitle% to t(e p(sical inte*rit of (is or (er o%E if t(at inte*rit is violate% or %iminis(e%, actual in:ur is suffere% for =(ic( actual or compensator %ama*es are %ue an% assessale. $etitioner Gatc(alian is entitle% to e place% as nearl as possile in t(e con%ition t(at s(e =as efore mis(ap. A scar, especiall one on t(e face of t(e =oman, resultin* from t(e infliction of in:ur upon (er, is a violation of o%il inte*rit, *ivin* raise to a le*itimate claim for restoration to (er condition ante. &n Araneta v. Are*la%o, 1/ $(il. +2", t(is Court a=ar%e% actual or compensator %ama*es, for amon* ot(er t(in*s, t(e sur*ical removal of t(e scar on t(e face of a oun* o =(o (a% een in:ure% in a ve(icular collision. Be consi%er t(at t(e amount of $1+,///.// to recover t(e cost of suc( plastic sur*er is not unreasonale.
+O&ERANO !s. MANI(A RAI(ROAD COMPAN? FactsB 5uana Soerano oar%e% a us of t(e 9en*uet Auto ine !9A#, a susi%iar of t(e 4anila ailroa% Co. !4#, %riven Santia*o Caccam, oun% for 9a*uio Cit. &n t(at trip, 5uana rou*(t =it( (er 3,/2 c(ic;en e**s to e sol% in 9a*uio Cit, an% some personal elon*in*s =(ic( s(e nee%e% in t(at trip. Aout t(ree ;ilometers a=a from 9a*uio Cit, alon* t(e Na*uilian roa%, t(e us (it a stone eman;ment, causin* it to fall into a 6+foot %eep precipice, resultin* in %eat( to t=o of its passen*ers an% serious p(sical in:uries to 5uana an% loss an% %estruction of all (er elon*in*s. 5uana Soerano %i% not intervene in t(e criminal case ecause s(e file% a formal reservation to institute a separate civil action for %ama*es an% in%emnit a*ainst t(e 4 an% t(e 9A. 9ecause of t(e loss of t(e e**s an% t(e %estruction of t(e personal effects t(at 5uana rou*(t =it( (er in t(at trip, 5ose Soerano, (er (usan%, %eman%e% from t(e %efen%ant companies t(e value t(ereof amountin* to $37/.66, of =(ic( sum t(e 4 pai% $3//. (e 4 also pai% t(e %ail e@penses, allo=ances, susistence, (ospitalization, me%ical fees an% me%icines of 5uana Soerano, as =ell as t(e service fees of (er careta;er. (e 4 (as pai% a total sum of $,21". ater t(e 4 offere% to settle t(e case e@tra:u%iciall, ten%erin* to t(e Soeranos t(e a%%itional sum of $+,///. (e offer =as re:ecte%, an% t(e Soeranos file% t(e present action a*ainst t(e %efen%ant companies an% Caccam, to recover from t(em %ama*es in t(e total sum of $76,7+7.76. After %ue trial, t(e lo=er court ren%ere% t(e %ecision appeale% from, %ismissin* at t(e same time t(e complaint a*ainst Caccam. (e Soeranos move% to (ave t(e %ecision reconsi%ere%. (e motion for reconsi%eration =as %enie%E (ence t(e present recourse.
IssueB B(et(er or not t(e amount of %ama*es a=ar%e% is a%euate. Ge$dB (e Soeranos initiall conten% t(at t(e lo=er court erre% in %isallo=in* t(eir claim of $2//, representin* t(e e@penses of 5uana Soerano in atten%in* as a =itness in t(e criminal case an% attorneKs fees incurre% in connection t(ere=it(. (is claim =as correctl %enie% t(e lo=er court, ecause t(ese e@penses =ere properl ta@ale in t(e criminal case. &t ma e ar*ue% t(at t(e Soeranos coul% not (ave recovere% t(is sum in t(e criminal case ecause 5uana Soerano e@pressl file% a formal reservation to institute a separate civil action for %ama*es, ut suc( reservation %i% not preserve =(atever ri*(ts t(e (a% a*ainst Caccam on t(e asis of t(e latterKs impru%ence. (e reservation is ineffective as to Caccam as it %i% not inclu%e (im amon* t(ose a*ainst =(om t(eir ri*(ts (a% een reserve%. An% t(e Soeranos not (avin* intervene% in t(e criminal case, t(is claim must e consi%ere% as (avin* een implie%l a%:u%icate% in t(e criminal case, an% cannot t(erefore e ventilate% in t(e present action.
(e Soeranos ne@t conten% t(at t(e lo=er court erre% in %enin* t(eir claim for moral %ama*es in t(e sum of $1+,///, for t(e p(sical sufferin*, mental an*uis(, serious an@iet an% fri*(t t(e suffere% as a conseuence of t(e mis(ap. (e lo=er court %enie% t(is claim on t(e stren*t( of t(e oftreiterate% rulin* of t(is Court t(at moral %ama*es cannot e recovere% a*ainst t(e emploer in actions ase% on a reac( of contract of carria*e in t(e asence of malice, frau%, or a% fait(. (e lo=er court ri*(tl %enie% t(e claim for moral %ama*es as far as 5ose Soerano is concerne%. &n case of p(sical in:uries, moral %ama*es are recoverale onl t(e part in:ure% an% not (is ne@t of ;in, unless t(ere is e@press statutor provision to t(e contrar. &n t(is case it =as 5uana Soerano, not (er (usan% 5ose, =(o sustaine% t(e o%il in:uries. (e claim for attorneKs fees =as also properl %enie% t(e lo=er court. (e Soeranos aver t(at t(e =ere oli*e% to file a separate civil action for %ama*es a*ainst t(e %efen%ant companies. (is claim is pre%icate% upon para*rap(s !2# an% !+# of article 22/8 of t(e Ne= Civil Co%e, =(ic( provi%e t(at attorneKs fees an% e@penses of liti*ation ma e recovere% =(en t(e %efen%antKs act or omission (as compelle% t(e plaintiff to liti*ate =it( t(ir% persons or incur e@penses to protect (is interest, or =(en t(e %efen%ant acte% in *ross an% evi%ent a% fait( in refusin* to satisf t(e plaintiffKs plainl vali%, :ust an% %eman%ale claim. &t =ill e oserve% t(at t(e %efen%ant companies offere% to settle t(e case offerin* to t(e Soeranos t(e a%%itional sum of $+,///. (e Soeranos, (o=ever, re:ecte% t(e offer an% procee%e% to court to recover %ama*es in t(e total sum of $76,7+7.76. &t =as not, t(erefore, t(e %efen%ant companies t(at compelle% t(e Soeranos to liti*ate, or to incur e@penses in connection =it( t(e liti*ation institute% t(em. astl, t(e nature an% e@tent of t(e p(sical in:uries suffere% 5uana Soerano (as t(e effect of ma;in* (er live an anormal life. Consi%erin* all t(e facts t(is Court is of t(e opinion t(at t(e sum of $+,/// in compensator %ama*es a=ar%e% to (er for loss of earnin* capacit is ina%euateE t(e amount s(oul% e increase% to $1+,///. S(e s(oul% also e a=ar%e% t(e sum of $+.3+, representin* unrealize% profits from t(e 3,/2 c(ic;en e**s =(ic( s(e rou*(t =it( (er in t(e trip an% =(ic( =ere %estroe%.
MARCGAN !s. MENDOLA FactsB A passen*er us of t(e $(ilippine ait 9us ines =(ic( =as t(en %riven Silverio 4arc(an fell into a %itc( some=(ere in 9arrio 4alan%a, $olo, 9ulacan, =(ile travellin* on its =a to 4anila. As a result of =(ic( Arsenio 4en%oza, (is =ife an% c(il%, =(o =ere t(en insi%e t(e us as passen*ers =ere t(ro=n out to t(e *roun% resultin* in t(eir multiple in:uries. Arsenio 4en%oza suffere% t(e most serious in:uries =(ic( %ama*e% (is verterae causin* t(e paralsis of (is lo=er e@tremities. An action =as rou*(t to recover %ama*es a*ainst petitioners pre%icate% not onl on a reac( of contract of carria*e for failure to safel conve t(e plaintiffs to t(eir %estination, ut also on account of a criminal ne*li*ence on t(e part of %efen%ant %river. (e lo=er court rule% in favor of plaintiffs. (e a=ar% of $/,///.// as compensator %ama*es =as affirme% CA. &t (o=ever a%%e% t(e amount of $3/,///.// as e@emplar %ama*es an% sustaine% t(e a=ar% of attorneKs fees in t(e amount of $+,///.//.
IssueB B(et(er or not t(e a=ar% of moral %ama*es =as proper. Ge$dB )es. (e amount of $/,///.// a=ar%e% t(e court as compensator %ama*es is uite reasonale an% fair, consi%erin* t(at plaintiff Arsenio 4en%oza (a% suffere% paralsis on t(e lo=er e@tremities, =(ic( =ill incapacitate (im to en*a*e in (is customar occupation t(rou*(out t(e remainin* ears of (is life, especiall so if =e ta;e into account t(at plaintiff =as onl 26 ears ol% =(en (e met an acci%ent an% ta;in* t(e avera*e span of life of a 'ilipino, (e ma e e@pecte% to live for 3/ ears more an% earin* in min% t(e earnin* capacit of Arsenio 4en%oza =(o efore t(e (appenin* of t(is acci%ent %erive% an income of almost $1//.// a mont( from t(e usiness of (is fat(erinla= as Assistant Supervisor of t(e small fairs an% (is income of $1//.// a mont( =(ic( (e %erive% as a professional o@er.
DE CA(I+TON !s. CA FactsB B(ile %rivin* a passen*er us in 9acolo% Cit, private respon%ent Geronimo Dalmacio ran over 5uana Sonza <%a. %e Darroc(a !a S
IssueB B(et(er or not t(e %eletion of t(e $1/,///.// a=ar%e% for loss of pension is :ustifie%O Ge$dB (e %eletion of t(e $1/,///.// a=ar%e% for loss of pension is un:ustifie%. n%er Article 22/6 of t(e Civil Co%eL (e amount of %ama*es for %eat( cause% a crime or uasi%elict s(all e at least t(ree t(ousan% pesos, even t(ou*( t(ere ma (ave een miti*atin* circumstances. &n a%%itionL !1# (e %efen%ant s(all e liale for t(e loss of t(e earnin* capacit of t(e %ecease%, an% t(e in%emnit s(all e pai% to t(e (eirs of t(e latter. (e pension of t(e %ece%ent ein* a sure income t(at =as cut s(ort (er %eat( for =(ic( Dalmacio =as responsile, t(e survivin* (eir of t(e former is entitle% to t(e a=ar% of $ 1/,///.// =(ic( is :ust euivalent to t(e pension t(e %ece%ent =oul% (ave receive% for one ear if s(e %i% not %ie. ?n t(e ot(er (an%, t(e $+,///.// pai% to t(e (erein petitioner t(e insurer of t(e passen*er us =(ic( fi*ure% in t(e acci%ent ma e %eeme% to (ave come from t(e us o=ner =(o procure% t(e insurance. Since t(e civil liailit !e@%elicto# of t(e latter for t(e %eat( cause% (is %river is susi%iar an%, at ottom, arises from t(e same culpa, t(e insurance procee%s s(oul% e cre%ite% in favor of t(e errant %river.
PGI(IPPINE AIR(INE+ INC. !s. CA 1=' +CRA 11> FactsB ?n Novemer 23, 1"6/, Starli*(t 'li*(t No. 26 of t(e $(ilippine Air ines too; off from &loilo, on its =a to 4anila, =it( 33 persons on oar%, inclu%in* t(e planeKs complement. (e plane %i% not reac( its %estination ut cras(e% on 4t. 9aco, 4in%oro, one (our an% fifteen minutes after ta;eoff .(e plane =as &%entifie% as $&C133, a DC3 tpe aircraft manufacture% in 1"2 an% acuire% $A in 1"8. &t (a% flo=n almost 18,/// (ours at t(e time of its illfate% fli*(t. &t (a% een certifie% as air=ort( t(e Civil Aeronautics A%ministration. Amon* t(e fatalities =as Nicanor $a%illa. 0e =as 2" ears ol%, sin*le. 0is mot(er, Nativi%a% A. <%a. %e $a%illa, =as (is onl le*al (eir. As a result of (er sonKs %eat(, 4rs. $a%illa file% a complaint !=(ic( =as amen%e% t=ice# a*ainst $A, %eman%in* pament of $6//,/// as actual an% compensator %ama*es, plus e@emplar %ama*es an% $6/,/// as attorneKs fees. &n its ans=er, $A %enie% t(at t(e acci%ent =as cause% its ne*li*ence or t(at of an of t(e planeKs fli*(t cre=, an% t(at, moreover, t(e %ama*es sou*(t =ere e@cessive an% speculative.
?n Au*ust 31, 1"73, t(e trial court promul*ate% a %ecision, or%erin* t(e %efen%ant $(ilippine Air ines, &nc. to pa t(e plaintiff Nativi%a% A. <%a. %e $a%illa t(e sum of $77,///.// as a=ar% for t(e e@pecte% income of t(e %ecease% NicanorE $1/,///.// as moral %ama*esE $1/,///.// as attorneKs feesE an% to pa t(e costs. ?n Appeal to t(e Court of Appeals t(e %ecision of t(e trial court =as affirme%in toto.
IssueB B(et(er or not t(e respon%ent court erre% in computin* t(e a=ar%e% in%emnit on t(e asis of t(e life e@pectanc of t(e late Nicanor A. $a%illa rat(er t(an on t(e life e@pectanc of private respon%ent, an% t(us erre% in a=ar%in* =(at appears to t(e petitioner as t(e e@cessive sum of $77,/// as in%emnit for loss of earnin*s.
Ge$dB $etitioner relies on t(e principle of la= *enerall reco*nize% an% applie% t(e courts in t(e nite% States t(at t(e controllin* element in %eterminin* loss of earnin*s arisin* from %eat( is, as estalis(e% aut(orities, t(e life e@pectanc of t(e %ecease% or of t(e eneficiar, =(ic(ever is s(orter. 0o=ever, resort to forei*n :urispru%ence =oul% e proper onl if no la= or :urispru%ence is availale locall to settle a controvers. ven in t(e asence of local statute an% case la=, forei*n :urispru%ence is onl persuasive. 'or t(e settlement of t(e issue at (an%, t(ere are enou*( applicale local la=s an% :urispru%ence. n%er Article 176 an% Article 22/6!1# of t(e Civil Co%e, t(e a=ar% of %ama*es for %eat( is compute% on t(e asis of t(e life e@pectanc of t(e %ecease%, not of (is eneficiar. (e articles provi%eL Art. 176. Dama*es in cases comprise% in t(is Section s(all e a=ar%e% in accor%ance =it( itle <&&& of t(is 9oo;, concernin* Dama*es. Article 22/6 s(all also appl to t(e %eat( of a passen*er cause% t(e reac( of contract a common carrier. Art. 22/6. (e amount of %ama*es for %eat( cause% a crime or uasi %elict s(all e at least t(ree t(ousan% pesos, even t(ou*( t(ere ma (ave een miti*atin* circumstances. &n a%%itionL !1# (e %efen%ant s(all e liale for t(e loss of the earning capacity of the deceased, and the indemnity shall be paid to the heirs of the latter E suc( in%emnit s(all in ever case e assesse% an% a=ar%e% t(e court, unless t(e %ecease% on account of permanent p(sical %isailit not cause% t(e %efen%ant, (a% no earnin* capacit at t(e time of (is %eat(. &n t(e case of =avila vs. 82, " SCA "7 =(ic( involve% t(e same tra*ic plane cras(, t(is Court %etermine% not onl $As liailit for ne*li*ence or reac( of contract, ut also t(e manner of computin* t(e %ama*es %ue t(e plaintiff t(erein =(ic( it ase% on t(e life e@pectanc of t(e %ecease%, $e%ro Davila, 5r. B0'?, t(e petition is %ismisse%. (e %ecision of t(e trial court is affirme% =it( mo%ification. (e petitioner is or%ere% to pa t(e private respon%ent or (er (eirs %eat( in%emnit in t(e sum of $17,/// !not $77,///#, =it( le*al rate of interest of 6 per annum from t(e %ate of t(e :u%*ment on Au*ust 31, 1"73, until it is full pai%. Costs a*ainst t(e petitioner.
!. MORAL DAMAGES CACGERO !s. MANI(A ?E((OJ TAICA& CO. INC.
FactsB Att. Cac(ero oar%e% a )ello= a@ica %riven Gre*orio 4ira Ainion an% o=ne% t(e 4 anila )ello= a@ica Co., &nc. ?n passin* ?rouieta et=een Doroteo 5osW an% ope %e
Ge$dB &n all cases, t(e attorneKs fees an% e@penses of liti*ation must e reasonale.(e present action =as institute% ecause plaintiff %eman%e% an e@oritant amount for moral %ama*es !$6/,///# an% naturall t(e %efen%ant %i% not an% coul% not iel% to suc( %eman%. (is is neit(er a case t(at comes un%er para*rap( 11 of Article 22/8 ecause t(e o=er Court %i% not %eem it :ust an% euitale to a=ar% an amount for attorneKs fees. As Be a*ree =it( t(e trial 5u%*e on t(is point, Be cannot %eclare t(at (e erre% for not a=ar%in* to plaintiff an suc( fees in t(is case. ealizin* its oli*ation un%er its contract of carria*e =it( t(e plaintiff, an% ecause t(e facts of t(e case, as (ave een s(o=n, mar; it as more proper for t(e 4unicipal Court onl, t(e %efen%ant, to avoi% t(e e@pense an% time of liti*ation, offere% to settle t(e case amical =it( plaintiff, ut t(e latter refuse% an% insiste% on (is %eman% for $72,/+/.2/ as t(e onl asis for settlement, t(us a%%in* a clearl pett case to t(e alrea% overflo=in* %es; of t(e 0onorale 4emers of t(is Court. Be a%mire an% respect at all times a man for stan%in* up an% fi*(tin* for (is ri*(ts, an% =(en sai% ri*(t consists in in:uries sustaine% %ue to a reac( of a contract of carria*e =it( us, smpat( an% un%erstan%in* are a%%e% t(ereto. 9ut =(en a person starts %eman%in* $2,/+/.2/ for a solitar ruise an% sprain, in:uries for =(ic( t(e trial court, even at its *enerous alt(ou*( erroneous est, coul% onl *rant $+,"//, t(en respect an% smpat( *ive =a to somet(in* else. &t is time to fi*(t, for, in our (umle opinion, t(ere is not(in* more loat(some nor trul =ort( of con%emnation t(an one =(o uses (is in:uries for ot(er purposes t(an :ust rectification. &f plaintiffKs claim is *rante%, it =oul% e a lessin*, not a misfortune, to e in:ure%. (is case =as institute% a la=er =(o, as an officer of t(e courts, s(oul% e t(e first in (elpin* s in t(e a%ministration of :ustice, an% after *oin* over t(e recor% of t(is case, =e %o not (esitate to sa t(at t(e %eman% of t(is case, =e %o not (esitate to sa t(at t(e %eman% of $72,/+/.2/ for a sulu@ation of t(e ri*(t (umerus one an% an insi*nificant contusion in K(e c(est, (as not even t(e semlance of reasonaleness. (e plaintiff (imself must (ave felt emarrasse% (is o=n attitu%e =(en after receivin* %efen%antKs rief as appellant, (e ma;es in (is rief as appellee t(e cate*orical statement t(at (e D?S N? N?B &NS&S N? $ND &N 0 AS to collect from t(e %efen%ant all t(e %ama*es (e (a% claime% in (is complaint, ut instea% (e is sumittin* (is case to t(e soun% %iscretion of t(e 0onorale Court for t(e a=ar% of a reasonale an% euitale %ama*es allo=ale la=, to compensate t(e plaintiff of t(e sufferin* an% losses (e (a% un%er*one an% incurre% ecause of t(e acci%ent oftentimes mentione% in t(is rief in =(ic( plaintiff =as in:ure%. (is ac;no=le%*ment comes too late, for plaintiff (as alrea% %eprive% t(e Court of Appeals of t(e occasion to e@ercise its appellate :uris%iction over t(is case =(ic( (e rec;lessl %umpe% to t(is Court. Be certainl cannot loo; =it( favor at t(is attitu%e of plaintiff.
B(erefore, t(e %ecision appeale% from is (ere mo%ifie% re%ucin* t(e amount a=ar%e% as unearne% professioral fees from $3,/// to $2,/// an% eliminatin*, t(e moral %ama*es of $2,/// a=ar%e% t(e o=er Court to t(e plaintiff. Sai% %ecision is in all ot(er respects affirme%, =it(out pronouncement as to costs. &t is so or%ere%.
FORE+ !s. MIRANDA FactsB espon%ent =as one of t(e passen*ers on a :eepne %riven u*enio u*a. B(ile t(e ve(icle =as %escen%in* t(e Sta. 4esa ri%*e at an e@cessive rate of spee%, t(e %river lost control t(ereof, causin* it to s=erve an% to (it t(e ri%*e =all. (e acci%ent occurre% on t(e mornin* of 4arc( 22, 1"+3. 'ive of t(e passen*ers =ere in:ure%, inclu%in* t(e respon%ent =(o suffere% a fracture of t(e upper ri*(t (umerus. 0e =as ta;en to t(e National ?rt(ope%ic 0ospital for treatment, an% later =as su:ecte% to a series of operationsE t(e first on 4a 23, 1"+3, =(en =ire loops =ere =oun% aroun% t(e ro;en ones an% scre=e% into placeE a secon%, effecte% to insert a metal splint, an% a t(ir% one to remove suc( splint. At t(e time of t(e trial, it appears t(at respon%ent (a% not et recovere% t(e use of (is ri*(t arm. (e %river =as c(ar*e% =it( serious p(sical in:uries t(rou*( rec;less impru%ence, an% upon interposin* a plea of *uilt =as sentence% accor%in*l. (e contention t(at t(e evi%ence %i% not sufficientl estalis( t(e i%entit of t(e ve(icle as t(at elon*in* to t(e petitioner =as re:ecte% t(e appellate court =(ic( foun%, amon* ot(er t(in*s, t(at it carrie% plate No. $1163, series of 1"+2, -uezon Cit, re*istere% in t(e name of $az 'ores, !appellant (erein# an% t(at t(e ve(icle even (a% t(e name of Doa $az painte% elo= its =in%s(iel%. No evi%ence to t(e contrar =as intro%uce% t(e petitioner, =(o relie% on an attac; upon t(e cre%iilit of t(e t=o policemen =(o =ent to t(e scene of t(e inci%ent. A point to e furt(er remar;e% is petitionerKs contention t(at on 4arc( 21, 1"+3, or one %a efore t(e acci%ent (appene%, s(e alle*e%l sol% t(e passen*er :eep t(at =as involve% t(erein to a certain Carmen Sac;erman. (e CA a=ar%e% moral %ama*es to respon%ent (ence t(is petition.
IssueB B(et(er or not t(e a=ar% of moral %ama*es *iven t(e CA =as vali%O Ge$dB No. $etitionerJs contention of loss of income an% pament of attornes fees cannot e t(e asis for t(e a=ar% of t(e %ama*es on t(e *roun% t(at a revie= of t(e recor%s faile% to %isclose a sufficient asis for t(e trial courtKs appraisal, since t(e onl evi%ence presente% on t(is point consiste% of respon%entKs are statement of (is e@penses an% t(e sai% loss of income. $etitioner fails to note t(at attorneKs fees are inclu%e% in t(e concept of actual %ama*es un%er t(e Civil Co%e an% ma e a=ar%e% =(enever t(e court %eems it :ust an% euitale. 4oral %ama*es are not recoverale in %ama*e actions pre%icate% on a reac( of t(e contract of transportation, in vie= of Articles 221" an% 222/ of t(e ne= Civil Co%e, =(ic( provi%e as follo=sL A. 221". 4oral %ama*es ma e recovere% in t(e follo=in* an% analo*ous casesL !1# A criminal offense resultin* in p(sical in:uriesE !2# -uasi%elicts causin* p(sical in:uriesE A. 222/. Billful in:ur to propert ma e a le*al *roun% for a=ar%in* moral %ama*es if t(e court s(oul% fin% t(at, un%er t(e circumstances, suc( %ama*es are :ustl %ue. (e same rule applies to reac(es of contract =(ere t(e %efen%ant acte% frau%ulentl or in a% fait(. 9 contrastin* t(e provisions of t(ese t=o articles it imme%iatel ecomes apparent t(atL !a# &n case of reac( of contract !inclu%in* one of transportation# proof of a% fait( or frau% !%olus#, i.e., =anton or %elieratel in:urious con%uct, is essential to 5ustif an a=ar% of moral %ama*esE an% !# (at a reac( of contract can not e consi%ere% inclu%e% in t(e %escriptive term analo*ous cases use% in Art. 221"E not onl ecause Art. 222/ specificall provi%es for t(e %ama*es t(at are cause% contractual reac(, ut
ecause t(e %efinition of uasi%elict in Art. 2176 of t(e Co%e e@pressl e@clu%es t(e cases =(ere t(ere is a pree@istin* contractual relation et=een t(e parties. A. 2176. B(oever act or omission causes %ama*e to anot(er, t(ere ein* fault or ne*li*ence, is oli*e% to pa for t(e %ama*e %one. Suc( fault or ne*li*ence, if t(ere is no pree@istin* contractual relation et=een t(e parties, is calle% a uasi%elict an% is *overne% t(e provisions of t(is C(apter. !he e)ception to the basic rule of damages now under consideration is a mishap resulting in the death of a passenger, in which case rticle %>? makes the common carrier e)pressly sub"ect to the rule of rt. 66/?, that entitles the spouse, descendants and ascendants of the deceased passenger to $demand moral damages for mental anguish by reason of the death of the deceased$. 1ut the e)ceptional rule of rt. %>? makes it all the more evident that where the in"ured passenger does not die, moral damages are not recoverable unless it is proved that the carrier was guilty of malice or bad faith. We think it is clear that the mere carelessness of the carrier's driver does not per se constitute or "ustify an inference of malice or bad faith on the part of the carrier# and in the case at bar there is no other evidence of such malice to support the award of moral damages by the Court of ppeals. !o award moral damages for breach of contract, therefore, without proof of bad faith or malice on the part of the defendant, as re(uired by rt. 666/, would be to violate the clear provisions of the law, and constitute unwarranted "udicial legislation. (e su**estion t(at a carrierKs violation of its en*a*ement to safel transport t(e passen*er involves a reac( of t(e passen*erKs confi%ence, an% t(erefore s(oul% e re*ar%e% as a reac( of contract in a% fait(, :ustifin* recover of moral %ama*es un%er Art. 222/ is untenale, for un%er it t(e carrier =oul% al=as e %eeme% in a% fait(, in ever case its oli*ation to t(e passen*er is infrin*e%, an% it =oul% e never accountale for simple ne*li*enceE =(ile un%er t(e la= !Art. 17+6# A. 17+6. &n case of %eat( of or in:uries to passen*ers, common carriers are presume% to (ave een at fault or to (ave acte% ne*li*entl, unless t(e prove t(at t(e oserve% e@traor%inar %ili*ence as prescrie% in articles 1733 an% 17++. A. 1762. (e contriutor ne*li*ence of t(e passen*er %oes not ar recover of %ama*es for (is %eat( or in:uries, if t(e pro@imate cause t(ereof is t(e ne*li*ence of t(e common carrier, ut t(e amount of %ama*es s(all e euital re%uce%. (e %istinction et=een frau%, a% fait( or malice in t(e sense of %elierate or =anton =ron* %oin* an% ne*li*ence !as mere carelessness# is too fun%amental in our la= to e i*nore%E t(eir conseuences ein* clearl %ifferentiate% t(e Co%e. A. 22/1. &n contracts an% uasicontracts, t(e %ama*es for=(ic( t(e oli*or =(o acte% in *oo% fait( is liale s(all e t(ose t(at arc t(e, natural an% proale conseuences of t(e reac( of t(e oli*ation, an% =(ic( t(e parties (ave foreseen or coul% (ave reasonal foreseen at t(e time t(e oli*ation =as constitute%. &n case of frau%, a% fait(, malice or =anton attitu%e, t(e oli*or s(all e responsile for all %ama*es =(ic( ma e reasonal attriute% to t(e nonperformance of t(e oli*ation. &t is to e presume%, in t(e asence of statutor provision to t(e contrar, t(at t(is %ifference =as in t(e min% of t(e la=ma;ers =(en in Art. 222/ t(e limite% recover of moral %ama*es to reac(es of contract in a% fait(. &t is true t(at ne*li*ence ma e occasionall so *ross as to amount to maliceE ut t(at fact must e s(o=n in evi%ence, an% a carrierKs a% fait( is not to e li*(tl inferre% from a mere fin%in* t(at t(e contract =as reac(e% t(rou*( ne*li*ence of t(e carrierKs emploees. &n vie= of t(e fore*oin* consi%erations, t(e %ecision of t(e Court of Appeals is mo%ifie% eliminatin* t(e a=ar% of $+.///.// =a of moral %ama*es t(e presumption is t(at common carriers acte% ne*li*entl !an% not maliciousl#, an% Art. 1762 spea;s of ne*li*ence of t(e common carrier.
(OPEL !s.PAN AMERICAN JOR(D AIRJA?+
FactsB eservations for first class accommo%ations in 'li*(t No. 2 of $an American Borl% Air=as from o;o to San 'rancisco =ere ma%e, )our ravel Gui%e a*enc, for t(en Senator 'ernan%o opez, (is =ife 4aria 5. opez, (is soninla= Alfre%o 4onteliano, 5r., an% (is %au*(ter, 4rs. Alfre%o 4onteliano, 5r. $ANA4Ks San 'rancisco (ea% office confirme% t(e reservations. 'irst class tic;ets for t(e aovementione% fli*(t =ere suseuentl issue%. As sc(e%ule% Senator opez an% part left 4anila Nort(=est Airlines. As soon as t(e arrive% Senator opez reueste% 4inister 9usue*o of t(e $(ilippine mass to contact $AN A4Ks o;o office re*ar%in* t(eir first class accommo%ations for t(at evenin*Ks fli*(t. 'or t(e *iven reason t(at t(e first class seats t(erein =ere all oo;e% up, (o=ever, $ANA4Ks o;o office informe% 4inister 9usue*o t(at $ANA4 coul% not accommo%ate Senator opez an% part in t(at trip as first class passen*ers. Senator opez t(ereupon *ave t(eir first class tic;ets to 4inister 9usue*o for (im to s(o= t(e same to $ANA4Ks o;o office, ut t(e latter firml reiterate% t(at t(ere =as no accommo%ation for t(em in t(e first class, statin* t(at t(e coul% not *o in t(at fli*(t unless t(e too; t(e tourist class t(erein. (e =ere constraine% to ta;e $ANA4Ks fli*(t from o;o to San 'rancisco as tourist passen*ers. Suit for %ama*es =as t(ereafter file% Senator opez an% part a*ainst $ANA4. Alle*in* reac( of contracts in a% fait( %efen%ant, plaintiffs as;e% for $+//,/// actual an% moral %ama*es, $1//,/// e@emplar %ama*es, $2+,/// attorneKs fees plus costs. $ANA4 file% its ans=er, assertin* t(at its failure to provi%e first class accommo%ations to plaintiffs =as %ue to (onest error of its emploees. Court of 'irst &nstance ren%ere% its %ecision in favor of plaintiffs. 9ot( (o=ever appeale% t(e %ecision. $laintiff prae% for an increase in t(e a=ar%.
IssueB B(et(er or not plaintiff is entitle% to %ama*es. Ge$dB )es. Accor%in* to plaintiffs, %efen%ant acte% in a% fait( ecause it %elieratel refuse% to compl =it( its contract to provi%e first class accommo%ations to plaintiffs, out of racial pre:u%ice a*ainst ?rientals. A*ainst t(e fore*oin*, (o=ever, %efen%antKs evi%ence =oul% see; to estalis( its t(eor of (onest mista;e. &t sai% t(at t(e first class reservations of Senator opez an% part =ere ma%e to*et(er =it( t(ose of four memers of t(e ufino famil. (e reservations emploee mista;enl cancelle% all t(e seats t(at (a% een reserve%, t(at is, inclu%in* t(ose of Senator opez an% part. Since t(e fli*(t involve% =as still more t(an a mont( a=a an% confi%ent t(at reinstatement =oul% e ma%e, 0erranz for*ot t(e matter an% tol% no one aout it e@cept (is coemploee. 'rom t(e fore*oin* evi%ence of %efen%ant, it is in effect a%mitte% t(at %efen%ant t(rou*( its a*ents first cancelle% plaintiffs, reservations mista;e an% t(ereafter %elieratel an% intentionall =it((el% from plaintiffs or t(eir travel a*ent t(e fact of sai% cancellation, lettin* t(em *o on elievin* t(at t(eir first class reservations stoo% vali% an% confirme%. &n so mislea%in* plaintiffs into purc(asin* first class tic;ets in t(e conviction t(at t(e (a% confirme% reservations for t(e same, =(en in fact t(e (a% none, %efen%ant =illfull an% ;no=in*l place% itself into t(e position of (avin* to reac( its contracts =it( plaintiffs. All t(e time, in le*al contemplation suc( con%uct alrea% amounts to action in a% fait(. 'or a% fait( means a reac( of a ;no=n %ut t(rou*( some motive of interest or ill=ill. No= on t(e issue of amount of %ama*es. 'irst, t(en, as to moral %ama*es. As a pro@imate result of %efen%antKs reac( in a% fait( of its contracts =it( plaintiffs, t(e latter suffere% social (umiliation, =oun%e% feelin*s, serious an@iet an% mental an*uis(. 'or plaintiffs =ere travellin* =it( first class tic;ets issue% %efen%ant an% et t(e =ere *iven onl t(e tourist class. At stopovers, t(e =ere e@pecte% to e amon* t(e firstclass passen*ers t(ose a=aitin* to =elcome t(em, onl to e foun% amon* t(e tourist passen*ers. &t ma not e (umiliatin* to travel as tourist passen*ersE it is (umiliatin* to e compelle% to travel as suc(, contrar to =(at is ri*(tfull to e e@pecte% from t(e contractual un%erta;in*. Senator opez =as t(en Senate $resi%ent $ro empore. &nternational carriers li;e %efen%ant ;no= t(e presti*e of suc( an office. An% (e =as former
Consi%erin* also t(e p(sical %iscomfort of t(e =ife of Senator opez as =ell as t(e memers of (is famil, it s(oul% e impose% in suc( an amount as to sufficientl an% effectivel %eter similar reac( of contracts in t(e future %efen%ant or ot(er airlines. &n t(is li*(t, =e fin% it :ust to a=ar% $7+,///.// as e@emplar or corrective %ama*es. A =ritten contract for attorneKs services s(all control t(e amount to e pai% t(erefor unless foun% t(e court to e unconscionale or unreasonale. (e amount of $2+, /// is reasonale, consi%erin* t(e attorneJs prominence in t(e le*al profession, an% t(at t(e %efense counselJs fees is more t(an (alf t(e sai% amount. &n conclu%in*, let it e stresse% t(at t(e amount of %ama*es a=ar%e% in t(is appeal (as een %etermine% a%euatel consi%erin* t(e official, political, social, an% financial stan%in* of t(e offen%e% parties on one (an%, an% t(e usiness an% financial position of t(e offen%er on t(e ot(er.
ORTI#A+ R. !s. (*FTGAN+A #ERMAN AIR(INE+ FactsB (e S(arp ravel Service, t(e travel %epartment of C. '. S(arp, &nc., t(e ma:orit interestin=(ic( is (el% oc(a Cia., &nc., General A*ents of t(e %efen%ant, uft(ansa German Airlines issue% to t(e plaintiff 'irst Class $an American ic;et =(ic( =oul% ta;e (im from 4anila, t(e place of %eparture, to 0on*;on*, various cities in t(e nite% States, urope, Asia, t(e 'ar ast, an% t(en ac; to 4anila, t(e place of %estination. ?rti*asK tic;et for all t(ese %ifferent le*s of (is :ourne =as first class. 0e left 4anila as sc(e%ule%. &n Ne= )or;, (e %eci%e% to leave out some cities, inclu%e% in (is ori*inal itinerar, to e in 0on*;on*, for several appointments (e (a% t(ere. ?rti*as arrive% in %ue course in ome. o e sure (e coul% fl first class to 0on*;on*, for (is appointments t(ere t(e ne@t %a, ?rti*as =ent to t(e office of t(e Alitalia to oo; passa*e. (e man at t(e counter of t(e Alitalia office tol% (im it (a% no fli*(t on 4on%a ut t(e uft(ansa (a%. (e man t(ereupon calle% up t(e office of t(e uft(ansa an%, after tal;in* to an emploee t(ereof, tol% ?rti*as t(at t(e uft(ansa (a% no first class, ut onl econom seats availale. ?rti*as =as not =illin* to ta;e an econom seat an% reueste% t(e emploee to call up ot(er airlines. (e emploee after=ar%s informe% ?rti*as t(at t(e uft(ansa (a% a first class seat availale. ?rti*as imme%iatel as;e% (im to *et t(e seat an% to see to it t(at (is tic;et e confirme% an% vali%ate% for t(e fli*(t an% a first class seat. (e man t(ereafter as;e% for ?rti*asK passport an% ot(er travel papers an% attac(e% a vali%atin* stic;er on fli*(t coupon No. =(ic( correspon%e% to t(e ome0on*;on* le* of (is BA ic;et. (e follo=in* 4on%a, ?rti*as c(ec;e% out of (is (otel an% too; a ta@i to t(e terminal. 0e unloa%e% (is a**a*e an% procee%e% to t(e counter in c(ar*e of t(e uft(ansa passen*ers. (e la% at t(e counter tol% (im t(at uft(ansa (a% no space for (im t(at %a. ?rti*as reueste% (er to c(ec; =it( (er main office, =(ic( s(e %i% callin* it up. After callin*, s(e apolo*ize% an% sai% t(e plaintiffKs tic;et =as in or%er an% =oul% e confirme% an% vali%ate%. ?n (er reuest, ?rti*as (a% (is lu**a*e =ei*(e% an% =as *iven t(e free lu**a*e allo=ance of a first class passen*er. 0e =as furt(ermore as;e% to pa 8// liras for us fare an% 7// liras as emar;ation ta@. An emploee in t(e airport as;e% for (is passport an% ot(er papers an%, after e@aminin* (is passport, =(ere (is 'ilipino nationalit appears, sai% (e coul% not oar% t(e plane t(at %a ecause (is seat =oul% e *iven to a 9el*ian. After an ar*ument =it( t(e emploee, ?rti*as ma%e anot(er reuest, t(at t(e emploee call ot(er airlines to inuire if t(e (a% fli*(ts to 0on*;on* t(at %a ut (e once more turne% %o=n t(e plea an% insiste% t(at ?rti*as travel econom, =it( t(e promise t(at (e =ill e transferre% to first class in Cairo an% on=ar% to 0on*;on*. 0e =as constraine% to a*ree =it( t(e arran*ement. pon arrival in Cairo, t(e plaintiff reueste% t(e uft(ansa a*ent to transfer (im to first class ut t(e a*ent sai% (e coul% not an% t(at (e %i% not receive an communication from ome to t(at effect. At D(ar(am, t(e plaintiff once more reueste% a transfer to first class ut =as also tol% t(e uft(ansa a*ent t(at (e (a% not receive% an communication aout t(e c(an*e an% t(e reuest coul% not e *rante%. &n Calcutta, ?rti*as once a*ain reueste% a transfer
or t(at (e e assiste% in oo;in* passa*e on ot(er planes ut =as also refuse%. &t =as onl in 9an*;o; =(en t(e c(ief ste=ar% as;e% (im if (e =ante% to move over to first class ut (avin* een alrea% emarrasse% an% (umiliate% an% t(e trip to 0on*;on* ein* onl t(ree (ours, (e sai% (e =oul% not as a si*n of protest. (e fore*oin* facts resulte% in t(e filin* of t(e case t(e plaintiff a*ainst %efen%ant, in =(ic( an a=ar% of moral an% e@emplar %ama*es =as or%ere% an% no= su:ect of an appeal.
IssueB B(et(er or not plaintiff is entitle% to %ama*es. Ge$dB )es. 4anuel ?taza, *eneral mana*er of 'ilital, &nc., =(ic( is t(e *eneral a*ent of t(e Alitalia in t(e $(ilippines, testifie% t(at space reservation t(rou*( telep(one calls et=een airlines is permitte% &AAKs, 4anual of raffic Conference esolutions an% t(at telep(one calls for reservation one airline to anot(er is in fact accepte% proce%ure in accor%ance =it( t(e official airline *ui%e of t(e Air raffic Conference an% &nternational Air ransport Association. (ere =as, t(erefore, a vali% an% in%in* contract et=een uft(ansa an% t(e plaintiff to transport (im as a first class passen*er from ome to 0on*;on*, an% t(is a*reement t(e %efen%ant violate% compellin* t(e plaintiff to travel as an econom passen*er. &t cannot e sai% t(e reac( =as t(e result of an (onest mista;e or e@cusale ne*li*ence. (ere is evi%ence t(at t(e %efen%ant acte% =it( a% fait( an% in =illful %isre*ar% of t(e plaintiffs ri*(ts. &t is ?ur consi%ere% vie= t(at =(en it comes to contracts of common carria*e, inattention an% lac; of care on t(e part of t(e carrier resultin* in t(e failure of t(e passen*er to e accommo%ate% in t(e class contracte% for amounts to a% fait( or frau% =(ic( entitles t(e passen*er to t(e a=ar% of moral %ama*es in accor%ance =it( Article 222/ of t(e Civil Co%e. 9ut in t(e instant case, t(e reac( appears to e of *raver nature, since t(e preference *iven to t(e 9el*ian passen*er over plaintiff =as %one =illfull an% in =anton %isre*ar% of plaintiffKs ri*(ts an% (is %i*nit as a (uman ein* an% as a 'ilipino, =(o ma not e %iscriminate% a*ainst =it( impunit. uft(ansa conten%s, (o=ever, t(at t(ere coul% not (ave een an possile %iscrimination reason of race a*ainst ?rti*as ecause from (is appearance, sai% plaintiff can easil e ta;en for a uropean or =(ite more t(an (is o=n =itness Ama%o Castro an% esi%es, t(ere =ere ot(er ?rientals in t(e same fli*(t on t(at occasion. &t is ar*ue% t(at an suc( polic =oul% e self%efeatin*, since it =oul% certainl e %ama*in* to its o=n usiness. A*ain, t(is ratiocination is untenale, for =(at appears from t(e evi%ence is not reall a case of a *eneral polic of %iscriminatin* a*ainst ?rientals or non=(ites, ut a specific act of uft(ansa emploee at t(e airport of *ivin* preference to a 9el*ian after e@aminin* ?rti*as passport =(erein (is 'ilipino nationalit is note%. As foun% t(e lo=er court =(at =orsene% t(e situation of ?rti*as =as t(at uft(ansa succee%e% in ;eepin* (im as its passen*er assurin* (im t(at (e =oul% e *iven first class accommo%ation at Cairo, t(e ne@t station, t(e proper arran*ements t(erefor (avin* een ma%e alrea%, =(en in trut( suc( =as not t(e case. (us, instea% of complin* =it( t(e reuest of ?rti*as t(at ot(er airlines e contacte% to fin% out it t(e (a% first class space for (im, t(e uft(ansa emploee =(o (a% in%ifferentl tol% (im aout (is %o=n*ra%in* pai% ver little attention if ever to sai% reuest. Alt(ou*( moleste% an% emarrasse% to t(e point t(at (e (a% to ta;e nitro*lcerine pills to =ar% off a possile (eart attac;, ?rti*as (ar%l (a% an c(oice, since (is lu**a*e =as alrea% in t(e plane. o (is %isappointment, =(en t(e plane reac(e% Cairo, (e =as tol% t(e uft(ansa office t(ere t(at no =or% at all (a% een receive% from ome an% t(e (a% no space for (im in first class. Borse, similar false representations =ere ma%e to (im at D(ar(am an% Calcutta. &t =as onl at 9an*;o; =(ere for t(e first time, ?rti*as =as at last informe% t(at (e coul% (ave a first class seat in t(at le* of t(e fli*(t, from 9an*;o; to 0on*;on*. (is ?rti*as re:ecte%, if onl to ma;e patent (is %ispleasure an% in%i*nation at ein* so inconsi%eratel treate% in t(e earlier part of (is :ourne. 4oreover, it is ar*ue%, t(e econom class accommo%ations are not muc( %ifferent from first class an% ?rti*as =as not %elae% in (is trip. Be cannot see t(e point. A passen*er contracts for first class accommo%ations for man reasons peculiar to (imself an% pas a (i*(er price t(erefor, an% it is certainl not for t(e airplane to sa later, after it %eprives (im of (is space in or%er to favor anot(er passen*er, t(at econom class is an=a :ust as *oo% as first class.
&n t(e li*(t of all t(e fore*oin*, t(ere can e no %out as to t(e ri*(t of ?rti*as to %ama*es, ot( moral an% e@emplar. Be (ave uniforml up(el% t(e ri*(t of a passen*er to %ama*es in all cases =(erein, after (avin* contracte% an% pai% for first class accommo%ations %ul confirme% an% vali%ate%, (e is transferre% over (is o:ection to econom, class, =(ic( (e (as to ta;e in or%er to e ale to arrive at (is %estination on (is sc(e%ule% time. DISPOSITIVE: B0'?,
t(e :u%*ment appeale% from is mo%ifie% raisin* t(e a=ar% of moral an% e@emplar %ama*es to plaintiff ?rti*as to $1+/,///.// an% $1//,///.//, respectivel. &n all ot(er respects, inclu%in* as to t(e pament of interests on t(e sai% amounts, t(e same is affirme%.
PGI(IPPINE RA&&IT &*+ (INE+ INC. !s.E+#*ERRA FactsB $atrocinio s*uerra =as a pain* passen*er of 9us No. 223 of $(ilippine ait 9us ines, &nc. 0e oar%e% t(e sai% us at t(e 4anila terminal aout four oKcloc; in t(e afternoon of Novemer 6, 1"61, oun% for San 'ernan%o, $ampan*a. 0e sat at t(e leften% of t(e fourt( ro= e(in% t(e %river, close to t(e =in%o=. As t(e us approac(e% arrio San 4arcos, Calumpit, 9ulacan, a frei*(t truc; o=ne% an% operate% t(e ransport Contractors, &nc. =as comin* from t(e opposite %irection. (e ve(icles si%es=ipe% eac( ot(er. (e =in%o= *lass near t(e %riverKs seat of t(e ait 9us =as %etac(e% an% t(e left si%e of its o% =as %ama*e%. (e left forearm of $atrocinio s*uerra =as (it a (ar% lunt o:ect, rea;in* t(e ones into small fra*ments =(ile t(e soft tissues of t(e muscles an% t(e s;in =ere mascerate%. 0e =as imme%iatel rou*(t to t(e 9ulacan $rovincial 0ospital in 4alolos, 9ulacan for treatment. (e left arm =as amputate%. $laintiff file% a case a*ainst t(e $(ilippine ait 9us ines, &nc. an% t(e ransport Contractors, &nc., to*et(er =it( t(eir respective %rivers, prain* t(at :u%*ment e ren%ere% in favor of t(e plaintiff an% a*ainst t(e %efen%ants reuirin* t(em to pa, :ointl an% severall %ama*es, actual an% compensator, moral an% e@emplar, liti*ation e@penses an% costs. (e Court of Appeals affirme% C'&Js %ecision.
IssueB B(et(er or not t(e a=ar% of moral %ama*es is proper Ge$dB No. (e contention of petitioners =it( respect to t(e a=ar% of moral %ama*es is meritorious. (is Court (as repeate%l (el% t(at moral %ama*es are not recoverale in actions for %ama*es pre%icate% on a reac( of t(e contract of transportation, as in t(e instant case, in vie= of t(e provisions of Articles 221" an% 222/ of t(e Ne= Civil Co%e. (e e@ceptions are !1# =(ere t(e mis(ap results in t(e %eat( of a passen*er, an% !2# =(ere it is prove% t(at t(e carrier =as *uilt of frau% or a% fait(, even if %eat( %oes not result. (e Court of Appeals foun% t(at t(e t=o ve(icles si%es=ipe% eac( ot(er at t(e mi%%le of t(e roa%. &n ot(er =or%s ot( ve(icles =ere in t(eir respective lanes an% t(at t(e %i% not inva%e t(e lane of t(e ot(er. &t cannot e sai% t(erefore t(at t(ere =as frau% or a% fait( on t(e part of t(e carrierKs %river. (is ein* t(e case, no moral %ama*es are recoverale.
+JEET (INE+ !s. CA FactsB $rivate respon%ents purc(ase% firstclass tic;ets from petitioner at t(e latterJs office in Ceu Cit. (e =ere to oar% petitionerJs vessel. 4F< S=eet Grace, oun% for Catalo*an, Bestern Samar. &nstea% of %epartin* at t(e sc(e%ule% (our of aout mi%ni*(t on 5ul 8, 1"72, t(e vessel set sail at 3L//am of 5ul ",
1"72, onl to e to=e% ac; to ceu %ue to en*ine troule, arrvin* at aout L//pm n t(e same %a. epairs (avin* een accomplis(e%, t(e vessel lifte% anc(or a*ain on 5ul 1/, 1"72 at aroun% 8L//am. &nstea% of %oc;in* to Catalo*an, =(ic( =as t(e first port of call, t(e vessel procee%e% %irect to acloan at aroun% "L//pm of 5ul 1/, 1"72. $rivate respon%ents (a% no recourse ut to %isemar; an% oar% a ferroat to Catalo*an. 0ence, t(is suit for %ama*es for reac( of contract of carria*e =(ic( t(e rial court, affirme% t(e CA, %eci%e% in favor of plaintiffs.
IssueB B(et(er or not moral %ama*es ma e ri*(tfull %eman%e%. Ge$dB )es. n%er Art. 222/ of t(e Civil Co%e, moral %ama*es are :ustl %ue in reac(es of contract =(ere t(e %efen%ant acte% frau%ulentl or in a% fait(. 9ot( t(e rial Court an% t(e Appellate Court foun% t(at t(ere =as a% fait( on t(e part of petitioner in t(atL !1# Defen%ants Appellants %i% not *ive notice to plaintiffsappellates as to t(e c(an*e of sc(e%ule% of t(e vesselE !2# no=in* full =ell t(at it =oul% ta;e no less t(an fifteen (ours to effect t(e repairs of t(e %ama*e% en*ine, %efen%ants appellants instea% ma%e announce ment of assurance t(at t(e vessel =oul% leave =it(in a s(ort perio% of time, an% =(en plaintiffappellees =ante% to leave t(e port an% *ave up t(e trip, %efen%ants appellants emploees =oul% come an% sa, H=e are leavin* alrea%I. !3# Defen%ants appellants %i% not offer to refun% plaintiffsappelleesJ tic;ets nor provi%e t(em =it( transportation form acloan to Catalo*an. (at t(e fin%in* of a% fait( is in%in* on us, since it is not t(e function of t(e court to analze an% revie= evi%ence on t(is point all over a*ain, asi%e from t(e fact t(at =e fin% it fait(ful to t(e meanin* of a% fait( enunciate% t(usL H9a% fait( means a reac( of a ;no=n %ut t(rou*( some motive or interest or ill =ill. Self enric(ment or fraternal interest, an% not personal ill =ill, ma (ave een t(e motive, ut it is malice nevert(eless.I n%er t(e circumstances, (o=ever, =e fin% t(e a=ar% of moral %ama*es e@cessive an% accor%in*l re%uce t(em from $7+,///.// to $3,///.// respectivel for eac( of t(e private respon%ents. 5u%*ment 4?D&'&D .
TRAN+ JOR(D AIR(INE+ !s. CA FactsB o*elio A.
%eparture ein* 11L// oKcloc; A.4. 0e =as informe% t(at t(ere =as no first class seat availale for (im on t(e fli*(t. 0e as;e% for an e@planation ut BA emploees on %ut %ecline% to *ive an reason. B(en (e e*an to protest, one of t(e BA emploees, a certain 4r. 9raam, ru%el t(reatene% (im =it( t(e =or%s DonKt ar*ue =it( me, & (ave a ver a% temper. o e ale to ;eep (is sc(e%ule,
IssueB B(et(er or not rans Borl% s(oul% e liale for %ama*es. Ge$dB espon%ent (a% a first class tic;et for 'li*(t No. 1 of petitioner from Ne= )or; to San 'rancisco on April 2/, 1"7". &t =as t=ice confirme% an% et respon%ent unceremoniousl tol% (im t(at t(ere =as no first class seat availale for (im an% t(at (e (a% to e %o=n*ra%e% to t(e econom class. As (e proteste%, (e =as arro*antl t(reatene% one 4r. 9raam. Borst still, =(ile (e =as =aitin* for t(e fli*(t, (e sa= t(at several Caucasians =(o arrive% muc( later =ere accommo%ate% in first class seats =(en t(e ot(er passen*ers %i% not s(o= up. (e %iscrimination is ovious an% t(e (umiliation to =(ic( private respon%ent =as su:ecte% is un%eniale. Conseuentl, t(e a=ar% of moral an% e@emplar %ama*es t(e respon%ent court is in or%er. &n%ee%, private respon%ent (a% s(o=n t(at t(e alle*e% s=itc( of planes from a oc;(ee% 1/11 to a smaller 9oein* 7/7 =as ecause t(ere =ere onl 138 confirme% econom class passen*ers =(o coul% ver =ell e accommo%ate% in t(e smaller plane an% not ecause of maintenance prolems. $etitioner sacrifice% t(e comfort of its first class passen*ers inclu%in* private respon%ent
ARMO,IT !s.CO*RT OF APPEA(+ FactsB &n ?ctoer 1"81, t(e petitioners %eci%e% to spen% t(eir C(ristmas (oli%as =it( relatives an% frien%s in t(e $(ilippines, so t(e purc(ase% from private respon%ent, !Nort(=est Airlines, &nc.# t(ree !3# roun% trip airline tic;ets from t(e .S. to 4anila an% ac;, plus t(ree !3# tic;ets for t(e rest of t(e c(il%ren, t(ou*( not involve% in t(e suit. ac( tic;et of t(e petitioners =(ic( =as in t(e (an%=ritin* of private respon%entKs tic;ets
sales a*ent contains t(e follo=in* entr on t(e 4anila to o;o portion of t(e return fli*(tL from 4anila to o;o, NB fli*(t //2, %ate 17 5anuar, time 1/L3/ A.4. Status, ?. ?n t(eir return trip from 4anila to t(e .S. sc(e%ule% on 5anuar 17, 1"82, petitioner arrive% at t(e c(ec;in counter of private respon%ent at t(e 4anila &nternational Airport at "L1+ in t(e mornin*, =(ic( is a *oo% one !1# (our an% fifteen !1+# minutes a(ea% of t(e 1/L3/ A.4. sc(e%ule% fli*(t time recite% in t(eir tic;ets. $etitioners =ere ru%el informe% t(at t(e cannot e accommo%ate% inasmuc( as 'li*(t //2 sc(e%ule% at "L1+ a.m. =as alrea% ta;in* off an% t(e 1/L3/ A.4. fli*(t time entere% in t(eir plane tic;ets =as erroneous. $revious to t(e sai% %ate of %eparture petitioners reconfirme% t(eir reservations t(rou*( t(eir representative rnesto 4a%ria*a =(o personall presente% t(e t(ree !3# tic;ets at t(e private respon%entKs o@as 9oulevar% office. (e %eparture time in t(e t(ree !3# tic;ets of petitioners =as not c(an*e% =(en re confirme%. (e names of petitioners appeare% in t(e passen*er manifest an% confirme% as $assen*er Nos. 3/6, 3/7, an% 3/8, 'li*(t //2. 0erein petitioner Dr. Armovit proteste% in e@treme a*itation t(at ecause of t(e umpoff (e =ill not e ale to ;eep (is appointments =it( (is patients in t(e .S. $etitioners suffere% an*uis(, =oun%e% feelin*s, an% serious an@iet %a an% ni*(t of 5anuar 17t( until t(e mornin* of 5anuar 18t( =(en t(e =ere finall informe% t(at seats =ill e availale for t(em on t(e fli*(t t(at %a. 9ecause of t(e refusal of t(e private respon%ent to (ee% t(e repeate% %eman%s of t(e petitioners for compensator %ama*es arisin* from t(e aforesai% reac( of t(eir airtransport contracts, petitioners =ere compelle% to file an action for %ama*es in t(e e*ional rial Court of 4anila. (e C a=ar%e% actual %ama*es, moral %ama*es, e@emplar %ama*es an% nominal %ama*es to t(e plaintiffs ut t(e CA eliminate% t(e a=ar% for moral an% nominal %ama*es.
IssueB B(et(er or not t(e elimination of t(e CA of t(e a=ar% for moral %ama*es. Ge$dB )es. (e contention of t(e CA t(at t(e appellees %i% not ta;e t(e =itness stan% to testif on t(eir social (umiliation, =oun%e% feelin*s an% an@iet an% t(e reac( of contract =as not malicious or frau%ulent =as =it(out merit. (e CA overloo;e% t(e fact t(at a ear after t(e inci%ent t(ere =as a turmoil in t(e countr ecause of t(e assassination of 9eni*no Auino an% t(at violent %emonstrations in t(e countr =ere sensationalize% in t(e .S. me%ia so petitioners =ere a%vise% to refrain from returnin* to t(e $(ilippines at t(e time =(en t(e =ere sc(e%ule% to testif. Nevert(eless, Att. Armovit, rot(er of Dr. Armovit, too; t(e =itness stan% for (e =as t(ere from t(e time t(e c(ec;e% in until t(e time t(e =ere ru%el informe% t(at t(eir fli*(t (a% alrea% ta;en off. An*ere% an% frustrate% Dr. Armovit tol% t(e sai% c(ec;inofficer t(at (e (a% to e accommo%ate% t(at mornin* so t(at (e coul% atten% to all (is appointments in t(e .S.E t(at petitioner 5acueline Armovit also complaine% aout not ein* ale to report for =or; at t(e e@piration of (er leave of asenceE t(at =(ile petitioner (a% to accept private respon%entKs offer for (otel accommo%ations at t(e $(ilippine
onl on t(e ver mornin* of t(at %a, so t(at t(e e@perience% an@iet until t(e =ere assure% seats for t(at fli*(t. No %out Att. amun% ArmovitKs testimon a%euatel an% sufficientl estalis(e% t(e serious an@iet, =oun%e% feelin*s an% social (umiliation t(at petitioners suffere% upon (avin* een umpe% off. 0o=ever, consi%erin* t(e circumstances of t(is case =(ere t(e private respon%ent atten%e% to t(e pli*(t of t(e petitioners, ta;in* care of t(eir accommo%ations =(ile =aitin* an% oar%in* t(em in t(e fli*(t ac; to t(e .S. t(e follo=in* %a, t(e Court fin%s t(at t(e petitioners are entitle% to moral %ama*es in t(e amount of $1//,///.// eac(. Also, t(e *ross ne*li*ence committe% private respon%ent in t(e issuance of t(e tic;ets =it( entries as to t(e time of t(e fli*(t, t(e failure to correct suc( erroneous entries an% t(e manner =(ic( petitioners =ere ru%el informe% t(at t(e =ere umpe% off are clear indicia of suc( malice an% a% fait( an% estalis( t(at private respon%ent committe% a reac( of contract =(ic( entitles petitioners to moral %ama*es. (e %eletion of t(e nominal %ama*es t(e appellate court is =ellta;en since t(ere is an a=ar% of actual %ama*es. Nominal %ama*es cannot coe@ist =it( actual or compensator %ama*es. B(erefore t(e %ecision of t(e CA is mo%ifie% provi%in* t(e a=ar% for moral %ama*es.
PGI(IPPINE AIR(INE+ !s. CO*RT OF APPEA(+ 1>< +CRA 3;1 FactsB $rivate respon%ent 5esus Samson fle= as copilot on a re*ular fli*(t from 4anila to e*aspi =it( Captain Delfin 9ustamante in a plane elon*in* to petitioner $A. (e airplane cras(lan%e% eon% t(e run=a %ue to t(e slo= reaction an% poor :u%*ment of sai% captain, =(en it %i% not maintain t(e reuire% pressure on t(e ra;es an% not=it(stan%in* t(e %ili*ent efforts of Samson. (e :olt cause% in:uries to Samson. An% instea% of $A *ivin* Samson e@pert an% proper me%ical treatment it referre% (im to a *eneral me%ical practitioner. No=, on *roun%s of p(sical %isailit Samson =as %isc(ar*e% from $AJs emplo, =(ic( cause% (im to file a complaint for %ama*es. $A %enie% liailit on t(e *roun% of fortuitous event, an% t(at t(e p(sical (ea%ac(es an% %izziness e@perience Samson =ere %ue to emotional %isturance over (is inailit to pass t(e reuire% up*ra%in* course *iven $A. 5u%*ement =as ren%ere% in favor of Samson in t(e lo=er court =(ic( =as affirme% CA =it( some mo%ification, imposin* le*al rate of interest on t(e unearne% income of Samson. 0ence t(e instant petition.
IssueB &s t(ere a causal connection et=een t(e in:uries suffere% private respon%ent %urin* t(e acci%ent an% t(e suseuent perio%ic %izziness, (ea%ac(e an% *eneral %eilit alle*e%l cause% t(e acci%ent an% private respon%entJs %isc(ar*e from emploment, =(ic( furt(er =arrants t(e a=ar% of %ama*esO
Ge$dB )es. (e %izziness, (ea%ac(es an% *eneral %eilit of private respon%ent =ere aftereffects of t(e cras(lan%in*. Doctors presente% $A even a%mit t(e vital facts aout SamsonJs rain in:ur. (ere =as also *ross ne*li*ence $A for allo=in* Capt. 9ustamante to fl on t(e t(at fateful %a of t(e acci%ent, even if (e =as sic;, (avin* tumor on (is nose. No one =ill certif t(e fitness to fl a plane of one sufferin* from t(e %isease. ?ne mont( prior to t(e cras(lan%in*, =(en t(e pilot =as preparin* to lan% in Daet, private respon%ent =arne% (im t(at t(e =ere not in t(e vicinit of Daet ut aove t(e to=n of i*ao. (e plane (it outsi%e t(e airstrip. &n anot(er instance, t(e pilot =oul% (it t(e 4aon
not t(e plaintiff =arne% (im. (ese more t(an prove =(at private respon%ent (a% complaine% of. Disre*ar% t(ereof $A is con%emnale. 0avin* affirme% t(e *ross ne*li*ence an% casual connection of t(e aftereffects of t(e acci%ent, t(e a=ar% of %ama*es =as li;e=ise affirme%. (e *rant of compensator %ama*esT$2/,///U computin* t(e asic salar per annum at $7+/.// a mont( an% $3//.// a mont( for e@tra pa for e@tra flin* time inclu%in* onus ever ear is :ustifie%. (e *rant of moral %ama*esT$+/,///U =as also :ustifie%, (avin* consi%ere% t(e a% fait( of $A. (e ne*li*ence of $A is clearl a uasi%elict an% t(erefore Art. 221"!2# is applicale, :ustifin* t(e recover of moral %ama*es. ven from t(e stan%point of t(e petitioner t(at t(ere is an emploeeemploer relations(ip et=een it an% private respon%ent arisin* from t(e contract of emploment, private respon%ent is still entitle% to moral %ama*es in vie= of t(e fin%in* of a% fait( or malice, applin* t(e provisions of Article 222/.
C. E)e'(lar$ Da'age PR*DENCIADO !s. A((IANCE TRAN+PORT +?+TEM INC. FactsB $etitioner =as %rivin* (er o=n C(evrolet 9el Air car alon* Arroceros Street =it( t(e intention of crossin* aft Avenue in or%er to turn left, to *o to t(e $(ilippine Normal Colle*e Compoun% =(ere s(e =oul% (ol% classes. S(e claime% t(at s(e =as %rivin* (er car at t(e rate of 1/ ;mp(, t(at efore crossin* aft Ave. s(e stoppe% (er car an% loo;e% to t(e ri*(t an% to t(e left an% not noticin* an oncomin* ve(icle on eit(er si%e s(e slo=l procee%e% on first *ear to cross t(e same, ut =(en s(e =as almost at t(e center, near t(e islan% t(ereof, 5ose eson =(o =as %rivin* $eopleKs a@ica o=ne% an% operate% Alliance ransport Sstem, &nc., su%%enl umpe% an% struc; petitionerJs car, t(ere causin* p(sical in:uries in %ifferent parts of (er o%, sufferin* more particularl rain concussion =(ile (er car =as %ama*e% to t(e e@tent of $2,+1.27. (e %ama*e to t(e ta@ica amounte% to $1"/.//. $etitioner file% a complaint for %ama*es a*ainst respon%ents. (e lo=er court foun% 5ose eson *uilt of ne*li*ence. Alliance ransport Sstem, &nc. faile% to prove to t(e satisfaction of t(e court t(at it (a% e@ercise% t(e reuire% %ili*ence of a *oo% fat(er of t(e famil in t(e selection, supervision an% control of its emploees. 9ot( %efen%ants =ere (el% :ointl an% severall liale for t(e p(sical in:uries suffere% t(e plaintiff as =ell as for t(e %ama*e to (er car, in a%%ition to t(e ot(er conseuential %ama*es prae% for. (e a=ar% =as $2,+1.27 for actual %ama*es representin* t(e cost for t(e repair of t(e car of plaintiffE $2+,///.// as moral %ama*esE $+,///.// as e@emplar %ama*esE an% t(e furt(er sum of $3,///.// as attorneKs fees, =it( costs a*ainst t(e %efen%ants. CA mo%ifie% t(e a=ar%, re%ucin* t(e amount of moral %ama*es from $2+,/// to $2,/// an% eliminatin* t(e a=ar% of e@emplar %ama*es an% attorneKs fees. 0ence t(e instant petition.
IssueB B(et(er or not t(e Court of Appeals is :ustifie% in mo%ifin* or c(an*in* t(e *rant of %ama*es t(e trial court.
Ge$dB No. A careful revie= of t(e recor%s ma;es it rea%il apparent t(at t(e in:uries sustaine% petitioner are not as serious or e@tensive as t(e =ere claime% to e, to =arrant t(e %ama*es a=ar%e% t(e trial court. &n fact, a closer scrutin of t(e e@(iits s(o=in* a mo%erate %ama*e to t(e car can no stretc( of t(e ima*ination pro%uce a lo*ical conclusion t(at suc( %isastrous effects of t(e acci%ent sou*(t to e estalis(e%, actuall too; place, not to mention t(e fact t(at suc( =ere not supporte% t(e me%ical fin%in*s presente%. nuestional, t(erefore, t(e %ama*es impose% t(e lo=er court s(oul% e re%uce% to more reasonale levels. ?n t(e ot(er (an%, it =ill e oserve% t(at t(e re%uction of t(e %ama*es ma%e
t(e Court of Appeals is ot( too %rastic an% unrealistic, to pass t(e test of reasonaleness, =(ic( appears to e t(e un%erlin* asis to :ustif suc( re%uction. B(ile t(e %ama*es sou*(t to e recovere% =ere not satisfactoril estalis(e% to t(e e@tent %esire% t(e petitioner, it =as nonet(eless not %ispute% t(at an acci%ent occurre% %ue to t(e fault an% ne*li*ence of t(e respon%ents t(at Dra. $ru%encia%o suffere% a rain concussion =(ic( alt(ou*( mil% can a%mitte%l pro%uce t(e effects complaine% of (er an% t(at t(ese smptoms can %evelop after several ears an% can lea% to some, serious (an%icaps or pre%ispose t(e patient to ot(er sic;ness. 9ein* a %octor profession, (er fears can e more real an% intense t(an an or%inar person. ?t(er=ise state%, s(e is un%enial a proper recipient of moral %ama*es =(ic( are proportionate to (er sufferin*. As to e@emplar %ama*es, Article 2231 of t(e Civil Co%e provi%esL H&n uasi%elicts, e@emplar %ama*es ma e *rante% if t(e %efen%ant acte% =it( *rave ne*li*ence.I (e rationale e(in% e@emplar or corrective %ama*es is, as t(e name implies, to provi%e an e@ample or correction for t(e pulic *oo%. (e fin%in*s of t(e trial court is apparent, =(ic( ecame t(e asis of t(e a=ar% of e@emplar %ama*es t(at respon%ent %river =as runnin* at (i*( spee% after turnin* to t(e ri*(t alon* aft Ave. comin* from Aala 9oulevar%, consi%erin* t(at t(e traffic =as clear. 'ailin* to notice petitionerKs car, (e faile% to appl (is ra;es an% %i% not even s=erve to t(e ri*(t to avoi% t(e collision. 4uc( more, it =as rainin* t(at time an% t(e roa%s are slipper. (e freuent inci%ence of acci%ents of t(is nature cause% ta@i %rivers in%ee% %eman%s corrective measures. (is (o=ever =as overrule% CA an% %i% not suscrie% to t(e fact t(at t(e %river =as *rossl ne*li*ent, in =(ic( t(is Court fin%s t(at it (as erre%.
DI+PO+ITI,EB $4&SS C?NS&DD, t(e assaile% %ecision of t(e Court of Appeals is (ere 4?D&'&D insofar as t(e a=ar% of %ama*es is concerne%E an% respon%ents are or%ere% to :ointl an% severall pa t(e petitionerE !1# t(e sum of $2,+1.27 for actual %ama*es representin* t(e cost of t(e repair of (er carE !2# t(e sum of $1+,///.// as moral %ama*esE !3# t(e sum of $+,///.// as e@emplar %ama*esE an% !# t(e sum of $3,///.// as attorneKs fees. No pronouncement as to costs.
MARCGAN !s. MENDOLA FactsB A passen*er us of t(e $(ilippine ait 9us ines =(ic( =as t(en %riven Silverio 4arc(an fell into a %itc( some=(ere in 9arrio 4alan%a, $olo, 9ulacan, =(ile travellin* on its =a to 4anila. As a result of =(ic( Arsenio 4en%oza, (is =ife an% c(il%, =(o =ere t(en insi%e t(e us as passen*ers =ere t(ro=n out to t(e *roun% resultin* in t(eir multiple in:uries. Arsenio 4en%oza suffere% t(e most serious in:uries =(ic( %ama*e% (is verterae causin* t(e paralsis of (is lo=er e@tremities. An action =as rou*(t to recover %ama*es a*ainst petitioners pre%icate% not onl on a reac( of contract of carria*e for failure to safel conve t(e plaintiffs to t(eir %estination, ut also on account of a criminal ne*li*ence on t(e part of %efen%ant %river. (e lo=er court rule% in favor of plaintiffs. (e a=ar% of $/,///.// as compensator %ama*es =as affirme% CA. &t (o=ever a%%e% t(e amount of $3/,///.// as e@emplar %ama*es an% sustaine% t(e a=ar% of attorneKs fees in t(e amount of $+,///.//.
IssueB B(et(er or not t(ere s(oul% e an a=ar% of e@emplar %ama*es. Ge$dB )es. &t is ar*ue% t(at t(is Court is =it(out :uris%iction to a%:u%icate t(e e@emplar %ama*es since t(ere =as no alle*ation nor praer, nor proof, nor counterclaim of error for t(e same t(e respon%ents. &t is to e oserve% (o=ever, t(at in t(e complaint, plaintiffs prae% for suc( ot(er an% furt(er relief as t(is Court ma %eem :ust an% euitale. No=, since t(e o% of t(e complaint sou*(t to recover %ama*es a*ainst t(e %efen%antcarrier =(erein plaintiffs prae% for in%emnification for t(e %ama*es t(e suffere% as a result of t(e ne*li*ence of t(e %river =(o is appellantKs emploee an% since e@emplar %ama*es is intimatel connecte% =it( *eneral %ama*es, plaintiffs ma not e e@pecte% to sin*le out e@press term t(e ;in% of %ama*es t(e are trin* to recover a*ainst t(e %efen%antKs carrier. Suffice it to state t(at =(en plaintiffs
