Transportation Transportation Law Law Case Digests | Atty. Norianne Tan | 2016 VALENZUELA HARDWOOD AND AND INDUSTRIAL SUPPLY INC v. CA and SEVEN BROTHERS SHIPPING CORPORATION G.R. No. 102316 June 30, 1997
S'iin% *ororation #Se(en )rot'ers$ +or t'e latter to load on oard its (essel t'e +or&er-s 90 lauan round lo%s +or s'i&ent to /anila. •
CASE: Valenzuela entered into an agreement with Seven Brothers for the shipment of the former’s logs by the latter to Manila. It insured the
logs against loss and/or damage with South Sea. The vessel sank resulting in the loss of the insured logs. CA held South Sea liable but not Seven Brothers because there was a stipulation that the ship owner would be exempted from liability in case of loss. W/ !" erred in upholding upholding the validity validity of the stipulation stipulation in the #harter party e$empting the ship owner from liability for the loss of petitioner%s logs arising from the negligen#e of the for mer’s &Seven Brothers%' #aptain. (. )he !ivil !ode provisions on #ommon #arriers should not be applied where the #arrier is not a#ting as su#h but as a private #arrier. It is undisputed that Seven Brothers had a#ted a#ted as a private #arrier in transporting petitioner%s logs. )hus* "rti#le +,- and other !ivil !ivil !ode provisions provisions on #ommon #ommon #arriers whi#h were #ited by petitioner may not be applied unless e$pressly stipulated by the parties in their #harter party. In a contr contract act of privat private e
carriage, the parties may validly stipulate that responsibility for the cargo rests solely on the char charte tere rer r, exem exempt ptin ing g the the ship ship ow owne ner r from from liab liabil ilit ity y for for loss loss of or dama damage ge to the the carg cargo o caus caused ed even even by the the negl neglig igen ence ce of the the ship ship captain. captain. ursuant to Article !"#$ of the Civil Code% such stipulation is valid because it is freely entered into by the parties and the same is not contrary to law% morals% good customs% public order% order% or public policy.
FACTS: Vale Valenz nzue uela la Hard Hardwo wood od and and Indu Indust stri rial al Su Sul! l!,, In". In". #Valenzuela$ #Valenzuela$ entered into an a%ree&ent wit' Se(en )rot'ers •
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Valenzuela insured the logs against loss andor da!age with "outh "ea "urety and #nsuran$e Co.% #n$. &"outh "ea' (or )2* + the latter issued its *arine Cargo #nsuran$e #nsuran$e )oli$y (or )2* on said date. The ,essel $arrying the logs san- resulting in the loss o( the insured logs. Valenzuela Valenzuela de!anded (ro! "outh "ea pay!ent o( the pro$eeds o( the poli$y ut the latter denied liaility under the poli$y. Valenzuela Valenzuela also /led a (or!al $lai! with "e,en rothers (or the ,alue o( the lost logs ut the l atter denied the $lai!. The trial $ourt dee!ed dee!ed the $harter party party stipulation ,oid (or eing $ontrary to puli$ poli$y% $iting Arti$le 13 o( the Ci ,il Code. CA sustained the liaility o( "outh "ea ut held that "e,en rothers was not liale (or the lost $argo e$ause4 ther there e was was a stip stipula ulati tion on that the ship o owne ow ner r wo woul uld d be exem exempt pted ed from from liability in case of loss; The pro,isions on $o!!on $o!!on $arriers should should o not not e applied applied where where the $arrier $arrier is not a$ting as su$h ut as a pri,ate $arrier5 o nder A!eri$an 7urispruden$e% a $o!!on $arri $arrier er undert underta-i a-ing ng to $arry $arry a spe$ia spe$iall $argo $argo or $harte $hartere red d to a spe$ia spe$iall perso person n only% e$o!es a pri,ate $arrier. As su$h% a stipulatio stipulation n e8e!ptin e8e!pting g the owner (ro! (ro! liail liaility ity e,en e,en (or the negligen negligen$e $e o( its agent agent is ,alid. The shipping shipping $orporat $orporation ion
9i,era% :ustine Ca!ille
Transportation Transportation Law Law Case Digests | Atty. Norianne Tan | 2016 should not there(ore e held liale (or the loss o( the logs.
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ISSUE: 'et'er or not * erred in u'oldin% t'e (alidit! o+ t'e stiulation in t'e "'arter art! ee"uted etween t'e etitioner and t'e ri(ate reson resonden dentt ee&t ee&tin% in% t'e latter latter +ro& +ro& liail liailit! it! +or t'e loss loss o+ etitioner-s lo%s arisin% +ro& t'e ne%li%en"e o+ its #Se(en )rot'ers-$ "atain. HELD & RATIO: N. 4'e *i(il *ode ro(isio ro(isions ns on "o&&on "arriers s'ould not e alied w'ere t'e "arrier is not a"tin% as su"' ut as a ri(ate "arrier. It is undisut undisuted ed t'at ri(ate ri(ate resondent resondent 'ad a"ted as a prva!" #arr"r in in transortin% etitioner-s lauan lo%s. 4'us, rti"le 175 and ot'er *i(il *ode ro(isions on "o&&on "arriers w'i"' were "ited ! etitioner $a% n! '" app("d )n("** "+pr"**(% *!p)(a!"d ! *!p)(a!"d ! t'e arties in t'eir "'arter art!. •
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In a cont contra ract ct of priv privat ate e carr carria iage ge,, the the parties may validly stipulate that responsibility for the cargo rests solely on the chartere charterer r, exempting exempting the ship owner from liability for loss of or damage to the cargo cargo cause caused d even even by the negli negligen gence ce of the ship captain. )ursuant to Arti$le 1;06 o( the Ci,il Code% su$h stipulation is ,alid e$ause it is (reely entered into y the parties and the sa!e sa!e is not not $ont $ontra rary ry to law% law% !ora !orals ls%% good good $usto!s% puli$ order% or puli$ poli$y.
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#n a $ontra$t o( pri,ate $arriage% the parties !ay (reel (reely y stipul stipulate ate their their duties duties and oliga oligatio tions ns whi$ whi$h h per( per(or or$e $e woul would d e ind indin ing g on the! the!.. Unlike Unlike in a contrac contractt involvin involving g a common common carrier, private carriage does not involve the general general public. public. Hence, Hence, the stringen stringentt provis provision ions s of the Civil Civil Code Code on comm common on carr carrie iers rs prot protec ecti ting ng the the gene genera rall publ public ic cann cannot ot ust usti! i!ab ably ly be appl applie ied d to a ship ship tran transp spor orti ting ng comm commer erci cial al good goods s as a private carrier. Conse and in (a$t it usually does > enter into a (ree and ,oluntary agree!ent.
9i,era% :ustine Ca!ille
