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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
August-2003 Jurisprudence                 

  • A.M. No. P-02-1651 August 4, 2003 - ALEJANDRO ESTRADA v. SOLEDAD S. ESCRITOR

  • G.R. No. 138924 August 5, 2003 - PEOPLE OF THE PHIL. v. CRISANTO D. MANAHAN

  • G.R. No. 139767 August 5, 2003 - FELIPE SY DUNGOG v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 140868-69 August 5, 2003 - PEOPLE OF THE PHIL. v. NAZARIO B. BUATES

  • G.R. No. 142691 August 5, 2003 - HEIRS OF AMADO CELESTIAL v. HEIRS OF EDITHA G. CELESTIAL

  • G.R. No. 144317 August 5, 2003 - PEOPLE OF THE PHIL. v. MICHAEL A. MONTE

  • G.R. No. 148848 August 5, 2003 - JACINTO RETUYA, ET. AL. v. SALIC B. DUMARPA, ET AL.

  • G.R. No. 152611 August 5, 2003 - LAND BANK OF THE PHIL. v. SEVERINO LISTANA, SR.

  • G.R. No. 152845 August 5, 2003 - DRIANITA BAGAOISAN, ET AL. v. NATIONAL TOBACCO ADMINISTRATION

  • A.M. No. MTJ-03-1502 August 6, 2003 - ANASTACIO E. GAUDENCIO v. EDWARD D. PACIS

  • A.M. No. P-03-1675 August 6, 2003 - ELENA F. PACE v. RENO M. LEONARDO

  • A.M. No. RTJ-00-1545 August 6, 2003 - ANTONIO J. FINEZA v. BAYANI S. RIVERA

  • G.R. No. 133926 August 6, 2003 - PEOPLE OF THE PHIL. v. RUBEN H. DALISAY

  • G.R. Nos. 137256-58 August 6, 2003 - PEOPLE OF THE PHIL. v. RUFINO V. ERNAS

  • G.R. No. 142740 August 6, 2003 - PEOPLE OF THE PHIL. v. ROBERTO A. TAMPOS

  • G.R. No. 142843 August 6, 2003 - OCTAVIO ALVAREZ, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 144428 August 6, 2003 - PEOPLE OF THE PHIL. v. JUAN M. ROSARIO

  • G.R. No. 144595 August 6, 2003 - PEOPLE OF THE PHIL. v. DANTE ILAGAN

  • G.R. Nos. 145383-84 August 6, 2003 - RUDY M. VILLAREÑA v. COMMISSION ON AUDIT

  • A.M. No. P-02-1627 August 7, 2003 - CARIDAD RACCA, ET AL. v. MARIO C. BACULI, ET AL.

  • G.R. No. 127210 August 7, 2003 - ALVIN TAN v. COURT OF APPEALS, ET AL.

  • G.R. No. 138956 August 7, 2003 - LOADSTAR SHIPPING CO., ET AL. v. ROMEO MESANO

  • G.R. No. 146341 August 7, 2003 - AQUILA LARENA v. FRUCTUOSA MAPILI, ET AL.

  • G.R. No. 146382 August 7, 2003 - SYSTEMS PLUS COMPUTER COLLEGE OF CALOOCAN CITY v. LOCAL GOVERNMENT OF CALOOCAN CITY

  • G.R. No. 148557 August 7, 2003 - FELICITO ABARQUEZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 149075 August 7, 2003 - PEOPLE OF THE PHIL. v. RODRIGO P. BALLENO

  • G.R. No. 151833 August 7, 2003 - ANTONIO M. SERRANO v. GALANT MARITIME SERVICES

  • G.R. No. 153087 August 7, 2003 - BERNARD R. NALA v. JESUS M. BARROSO

  • G.R. No. 154183 August 7, 2003 - SPS. VICKY TAN TOH and LUIS TOH v. SOLID BANK CORP., ET AL.

  • G.R. No. 134241 August 11, 2003 - DAVID REYES v. JOSE LIM, ET AL.

  • G.R. No. 139177 August 11, 2003 - PEOPLE OF THE PHIL. v. ALVIN VILLANUEVA

  • A.M. No. 00-3-48-MeTC August 12, 2003 - REPORT ON THE JUDICIAL AUDIT AND PHYSICAL INVENTORY OF CASES IN THE MTC OF MANILA, BR. 2

  • A.M. No. MTJ-02-1388 August 12, 2003 - FELISA TABORITE, ET AL. v. MANUEL S. SOLLESTA, ET AL.

  • A.M. No. P-02-1588 August 12, 2003 - RUBY M. GONZALES v. ALMA G. MARTILLANA

  • G.R. No. 120474 August 12, 2003 - ANICETO W. NAGUIT, JR. v. NLRC, ET AL.

  • G.R. Nos. 133796-97 August 12, 2003 - PEOPLE OF THE PHIL. v. BERNANDINO M. ALAJAY

  • G.R. No. 133858 August 12, 2003 - PEOPLE OF THE PHIL. v. HERMINIANO SATORRE

  • G.R. No. 133892 August 12, 2003 - PEOPLE OF THE PHIL. v. JOVITO B. LLAVORE, ET AL.

  • G.R. No. 137792 August 12, 2003 - SPS RICARDO ROSALES, ET AL. v. SPS ALFONSO and LOURDES SUBA, ET AL.

  • G.R. No. 145951 August 12, 2003 - PEOPLE OF THE PHIL. v. SANDIGANBAYAN, ET AL.

  • G.R. Nos. 151908 & 152063 August 12, 2003 - SMART COMMUNICATIONS, INC. v. NATIONAL TELECOMMUNICATIONS COMMISSION

  • G.R. No. 152807 August 12, 2003 - HEIRS OF LOURDES SAEZ SABANPAN, ET AL. v. ALBERTO C. COMORPOSA, ET AL.

  • A.C. No. 4650 August 14, 2003 - ROSALINA BIASCAN v. MARCIAL F. LOPEZ

  • A.M. No. 00-6-09-SC August 14, 2003 - RE: IMPOSITION OF CORRESPONDING PENALTIES FOR HABITUAL TARDINESS, ETC.

  • A.M. No. RTJ-01-1631 August 14, 2003 - OFFICE OF THE COURT ADMINISTRATOR v. JAIME F. BAUTISTA

  • G.R. No. 126627 August 14, 2003 - SMITH KLINE BECKMAN CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 140023 August 14, 2003 - RUDY LAO v. STANDARD INSURANCE CO.

  • G.R. Nos. 140034-35 August 14, 2003 - PEOPLE OF THE PHIL. v. RODOLFO B. ZABALA

  • G.R. No. 144402 August 14, 2003 - PEOPLE OF THE PHIL. v. ROMEO ECLERA, SR.

  • G.R. No. 156039 August 14, 2003 - KARINA CONSTANTINO-DAVID, ET AL. v. ZENAIDA D. PANGANDAMAN-GANIA

  • A.M. No. MTJ-02-1401 August 15, 2003 - ARSENIA LARIOSA v. CONRADO B. BANDALA, ET AL.

  • G.R. No. 115925 August 15, 2003 - SPS. RICARDO PASCUAL, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 127128 August 15, 2003 - PEOPLE OF THE PHIL. v. ROEL C. MENDIGURIN

  • G.R. No. 133841 August 15, 2003 - CAROLINA P. RAMIREZ, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 135697-98 August 15, 2003 - PEOPLE OF THE PHIL. v. PEDRITO C. ANDRES, ET AL.

  • G.R. Nos. 137520-22 August 15, 2003 - PEOPLE OF THE PHIL. v. ALFREDO BAROY, ET AL.

  • G.R. No. 138074 August 15, 2003 - CELY YANG v. COURT OF APPEALS, ET AL.

  • G.R. No. 138862 August 15, 2003 - MANUEL CAMACHO v. RICARDO GLORIA, ET AL.

  • G.R. No. 139895 August 15, 2003 - CIPRIANO M. LAZARO v. RURAL BANK OF FRANCISCO BALAGTAS (BULACAN), INC., ET AL.

  • G.R. No. 143258 August 15, 2003 - PHILIPPINE AIRLINES v. JOSELITO PASCUA, ET AL.

  • G.R. No. 144618 August 15, 2003 - JORGE CHIN, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 147662-63 August 15, 2003 - PEOPLE OF THE PHIL. v. FREDDIE FONTANILLA

  • G.R. No. 148222 August 15, 2003 - PEARL & DEAN (PHIL.) v. SHOEMART, ET AL.

  • G.R. No. 151941 August 15, 2003 - CHAILEASE FINANCE CORP. v. SPS. ROMEO and MARIAFE MA

  • G.R. Nos. 153714-20 August 15, 2003 - PEOPLE OF THE PHIL. v. MARIO K. ESPINOSA

  • G.R. No. 154448 August 15, 2003 - PEDRITO F. REYES v. COURT OF APPEALS, ET AL.

  • G.R. No. 154920 August 15, 2003 - RODNEY HEGERTY v. COURT OF APPEALS, ET AL.

  • A.M. No. RTJ-03-1744 August 18, 2003 - ROBERT M. VISBAL v. ROGELIO C. SESCON

  • A.C. No. 5299 August 19, 2003 - ISMAEL G. KHAN v. RIZALINO T. SIMBILLO

  • G.R. No. 138945 August 19, 2003 - FELIX GOCHAN AND SONS REALTY CORP., ET AL. v. HEIRS OF RAYMUNDO BABA, ET AL.

  • G.R. No. 144331 August 19, 2003 - PEOPLE OF THE PHIL. v. CRISTITO LATASA

  • G.R. No. 145930 August 19, 2003 - C-E CONSTRUCTION CORP. v. NLRC, ET AL.

  • G.R. No. 147246 August 19, 2003 - ASIA LIGHTERAGE AND SHIPPING, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 148877 August 19, 2003 - PEOPLE OF THE PHIL. v. ANGELITO B. BAGSIT

  • G.R. No. 149724 August 19, 2003 - DENR v. DENR REGION 12 EMPLOYEES

  • G.R. No. 150060 August 19, 2003 - PRIMARY STRUCTURES CORP. v. SPS. ANTHONY and SUSAN T. VALENCIA

  • A.M. No. MTJ-02-1437 August 20, 2003 - JAIME E. CONTRERAS v. EDDIE P. MONSERATE

  • A.M. No. MTJ-03-1473 August 20, 2003 - MYRA M. ALINTANA DE PACETE v. JOSEFINO A. GARILLO

  • A.M. No. RTJ-03-1745 August 20, 2003 - UNITRUST DEVELOPMENT BANK v. JOSE F. CAOIBES, JR., ET AL.

  • G.R. No. 125799 August 21, 2003 - DANILO CANSINO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 148864 August 21, 2003 - SPS EDUARDO and EPIFANIA EVANGELISTA v. MERCATOR FINANCE CORP., ET AL.

  • G.R. No. 149495 August 21, 2003 - PEOPLE OF THE PHIL. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 150590 August 21, 2003 - PEOPLE OF THE PHIL. v. WILLIE A. ALMEDILLA

  • A.M. No. P-03-1673 August 25, 2003 - LOUIE TRINIDAD v. SOTERO S. PACLIBAR

  • G.R. No. 114172 August 25, 2003 - JUANITA P. PINEDA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 129368 August 25, 2003 - LAND BANK OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 129961-62 August 25, 2003 - PEOPLE OF THE PHIL. v. VIRGILIO CAABAY, ET AL.

  • G.R. No. 137326 August 25, 2003 - ROSARIO TEXTILE MILLS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 138334 August 25, 2003 - ESTELA L. CRISOSTOMO v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 142856-57 August 25, 2003 - PEOPLE OF THE PHIL. v. ROBERTO NEGOSA

  • G.R. No. 151026 August 25, 2003 - SOLIDBANK CORP. v. CA, ET. AL.

  • G.R. No. 152221 August 25, 2003 - PEOPLE OF THE PHIL v. JACINTO B. ALVAREZ, JR.

  • A.M. No. 01-4-133-MTC August 26, 2003 - RE: ELSIE C. REMOROZA

  • A.M. No. MTJ-03-1492 August 26, 2003 - DOMINGO B. MANAOIS v. LAVEZARES C. LEOMO

  • A.M. No. MTJ-03-1504 August 26, 2003 - FELICITAS M. HIMALIN v. ISAURO M. BALDERIAN

  • G.R. Nos. 146097-98 August 26, 2003 - PEOPLE OF THE PHIL. v. JUAN CARIÑAGA

  • A.C. No. 5474 August 28, 2003 - REDENTOR S. JARDIN v. DEOGRACIAS VILLAR

  • A.C. No. 5535 August 28, 2003 - SPS. STEVEN and NORA WHITSON v. JUANITO C. ATIENZA

  • A.M. No. MTJ-03-1506 August 28, 2003 - PABLO B. MABINI v. LORINDA B. TOLEDO-MUPAS

  • A.M. No. P-01-1507 August 28, 2003 - OFFICE OF THE COURT ADMINISTRATOR v. ROLANDO SAA

  • A.M. No. P-02-1579 August 28, 2003 - LETICIA L. NICOLAS v. PRISCO L. RICAFORT

  • A.M. No. P-02-1631 August 28, 2003 - RENATO C. BALIBAG v. HERMITO C. MONICA

  • A.M. No. P-02-1659 August 28, 2003 - OFFICE OF THE COURT ADMINISTRATOR v. LIZA MARIA E. SIRIOS

  • A.M. No. P-03-1710 August 28, 2003 - EDGARDO ANGELES v. BALTAZAR P. EDUARTE

  • A.M. No. RTJ-02-1676 August 28, 2003 - OFFICE OF THE COURT ADMINISTRATOR v. GUILLERMO R. ANDAYA

  • A.M. No. RTJ-03-1786 August 28, 2003 - ALFREDO Y. CHU v. CAMILO E. TAMIN

  • G.R. No. 134604 August 28, 2003 - PEOPLE OF THE PHIL. v. ERNESTO HUGO, ET AL.

  • G.R. No. 138295 August 28, 2003 - PILIPINO TELEPHONE CORP. v. NTC, ET AL.

  • G.R. No. 143826 August 28, 2003 - IGNACIA AGUILAR-REYES v. SPS. CIPRIANO and FLORENTINA MIJARES

  • G.R. No. 146501 August 28, 2003 - FLORDELIZA RIVERA v. GREGORIA SANTIAGO, ET AL.

  • G.R. No. 149810 August 28, 2003 - PEOPLE OF THE PHIL. v. CRISPIN T. RUALES

  • G.R. No. 154049 August 28, 2003 - RAMON P. JACINTO, ET AL. v. FIRST WOMEN’S CREDIT CORP.

  • G.R. No. 133733 August 29, 2003 - PEOPLE OF THE PHIL. v. MAXIMO AQUINDE, ET AL.

  • G.R. No. 136299 August 29, 2003 - PEOPLE OF THE PHIL. v. ZOILO MAGALLANES

  • G.R. No. 137010 August 29, 2003 - ARK TRAVEL EXPRESS v. Presiding Judge of the Regional Trial Court of Makati, ET AL.

  • G.R. No. 142383 August 29, 2003 - ASIAN TRANSMISSION CORP. v. CANLUBANG SUGAR ESTATES

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    G.R. No. 147246   August 19, 2003 - ASIA LIGHTERAGE AND SHIPPING, INC. v. COURT OF APPEALS, ET AL.

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 147246. August 19, 2003.]

    ASIA LIGHTERAGE AND SHIPPING, INC., Petitioner, v. COURT OF APPEALS and PRUDENTIAL GUARANTEE AND ASSURANCE, INC., Respondents.

    D E C I S I O N


    PUNO, J.:


    On appeal is the Court of Appeals’ May 11, 2000 Decision 1 in CA-G.R. CV No. 49195 and February 21, 2001 Resolution 2 affirming with modification the April 6, 1994 Decision 3 of the Regional Trial Court of Manila which found petitioner liable to pay private respondent the amount of indemnity and attorney’s fees.chanrob1es virtua1 1aw 1ibrary

    First, the facts.

    On June 13, 1990, 3,150 metric tons of Better Western White Wheat in bulk, valued at US$423,192.35 4 was shipped by Marubeni American Corporation of Portland, Oregon on board the vessel M/V NEO CYMBIDIUM V-26 for delivery to the consignee, General Milling Corporation in Manila, evidenced by Bill of Lading No. PTD/Man-4. 5 The shipment was insured by the private respondent Prudential Guarantee and Assurance, Inc. against loss or damage for P14,621,771.75 under Marine Cargo Risk Note RN 11859/90. 6

    On July 25, 1990, the carrying vessel arrived in Manila and the cargo was transferred to the custody of the petitioner Asia Lighterage and Shipping, Inc. The petitioner was contracted by the consignee as carrier to deliver the cargo to consignee’s warehouse at Bo. Ugong, Pasig City.

    On August 15, 1990, 900 metric tons of the shipment was loaded on barge PSTSI III, evidenced by Lighterage Receipt No. 0364 7 for delivery to consignee. The cargo did not reach its destination.

    It appears that on August 17, 1990, the transport of said cargo was suspended due to a warning of an incoming typhoon. On August 22, 1990, the petitioner proceeded to pull the barge to Engineering Island off Baseco to seek shelter from the approaching typhoon. PSTSI III was tied down to other barges which arrived ahead of it while weathering out the storm that night. A few days after, the barge developed a list because of a hole it sustained after hitting an unseen protuberance underneath the water. The petitioner filed a Marine Protest on August 28, 1990. 8 It likewise secured the services of Gaspar Salvaging Corporation which refloated the barge. 9 The hole was then patched with clay and cement.

    The barge was then towed to ISLOFF terminal before it finally headed towards the consignee’s wharf on September 5, 1990. Upon reaching the Sta. Mesa spillways, the barge again ran aground due to strong current. To avoid the complete sinking of the barge, a portion of the goods was transferred to three other barges. 10

    The next day, September 6, 1990, the towing bits of the barge broke. It sank completely, resulting in the total loss of the remaining cargo. 11 A second Marine Protest was filed on September 7, 1990. 12

    On September 14, 1990, a bidding was conducted to dispose of the damaged wheat retrieved and loaded on the three other barges. 13 The total proceeds from the sale of the salvaged cargo was P201,379.75. 14

    On the same date, September 14, 1990, consignee sent a claim letter to the petitioner, and another letter dated September 18, 1990 to the private respondent for the value of the lost cargo.

    On January 30, 1991, the private respondent indemnified the consignee in the amount of P4,104,654.22. 15 Thereafter, as subrogee, it sought recovery of said amount from the petitioner, but to no avail.

    On July 3, 1991, the private respondent filed a complaint against the petitioner for recovery of the amount of indemnity, attorney’s fees and cost of suit. 16 Petitioner filed its answer with counterclaim. 17

    The Regional Trial Court ruled in favor of the private Respondent. The dispositive portion of its Decision states:chanrob1es virtual 1aw library

    WHEREFORE, premises considered, judgment is hereby rendered ordering defendant Asia Lighterage & Shipping, Inc. liable to pay plaintiff Prudential Guarantee & Assurance Co., Inc. the sum of P4,104,654.22 with interest from the date complaint was filed on July 3, 1991 until fully satisfied plus 10% of the amount awarded as and for attorney’s fees. Defendant’s counterclaim is hereby DISMISSED. With costs against defendant. 18

    Petitioner appealed to the Court of Appeals insisting that it is not a common carrier. The appellate court affirmed the decision of the trial court with modification. The dispositive portion of its decision reads:chanrob1es virtual 1aw library

    WHEREFORE, the decision appealed from is hereby AFFIRMED with modification in the sense that the salvage value of P201,379.75 shall be deducted from the amount of P4,104,654.22. Costs against Appellant.

    SO ORDERED.

    Petitioner’s Motion for Reconsideration dated June 3, 2000 was likewise denied by the appellate court in a Resolution promulgated on February 21, 2001.

    Hence, this petition. Petitioner submits the following errors allegedly committed by the appellate court, viz: 19

    (1) THE COURT OF APPEALS DECIDED THE CASE A QUO IN A WAY NOT IN ACCORD WITH LAW AND/OR WITH THE APPLICABLE DECISIONS OF THE SUPREME COURT WHEN IT HELD THAT PETITIONER IS A COMMON CARRIER.

    (2) THE COURT OF APPEALS DECIDED THE CASE A QUO IN A WAY NOT IN ACCORD WITH LAW AND/OR WITH THE APPLICABLE DECISIONS OF THE SUPREME COURT WHEN IT AFFIRMED THE FINDING OF THE LOWER COURT A QUO THAT ON THE BASIS OF THE PROVISIONS OF THE CIVIL CODE APPLICABLE TO COMMON CARRIERS, "THE LOSS OF THE CARGO IS, THEREFORE, BORNE BY THE CARRIER IN ALL CASES EXCEPT IN THE FIVE (5) CASES ENUMERATED."cralaw virtua1aw library

    (3) THE COURT OF APPEALS DECIDED THE CASE A QUO IN A WAY NOT IN ACCORD WITH LAW AND/OR WITH THE APPLICABLE DECISIONS OF THE SUPREME COURT WHEN IT EFFECTIVELY CONCLUDED THAT PETITIONER FAILED TO EXERCISE DUE DILIGENCE AND/OR WAS NEGLIGENT IN ITS CARE AND CUSTODY OF THE CONSIGNEE’S CARGO.

    The issues to be resolved are:chanrob1es virtual 1aw library

    (1) Whether the petitioner is a common carrier; and,

    (2) Assuming the petitioner is a common carrier, whether it exercised extraordinary diligence in its care and custody of the consignee’s cargo.

    On the first issue, we rule that petitioner is a common carrier.

    Article 1732 of the Civil Code defines common carriers as persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public.

    Petitioner contends that it is not a common carrier but a private carrier. Allegedly, it has no fixed and publicly known route, maintains no terminals, and issues no tickets. It points out that it is not obliged to carry indiscriminately for any person. It is not bound to carry goods unless it consents. In short, it does not hold out its services to the general public. 20

    We disagree.

    In De Guzman v. Court of Appeals, 21 we held that the definition of common carriers in Article 1732 of the Civil Code makes no distinction between one whose principal business activity is the carrying of persons or goods or both, and one who does such carrying only as an ancillary activity. We also did not distinguish between a person or enterprise offering transportation service on a regular or scheduled basis and one offering such service on an occasional, episodic or unscheduled basis. Further, we ruled that Article 1732 does not distinguish between a carrier offering its services to the general public, and one who offers services or solicits business only from a narrow segment of the general population.

    In the case at bar, the principal business of the petitioner is that of lighterage and drayage 22 and it offers its barges to the public for carrying or transporting goods by water for compensation. Petitioner is clearly a common carrier. In De Guzman, supra, 23 we considered private respondent Ernesto Cendaña to be a common carrier even if his principal occupation was not the carriage of goods for others, but that of buying used bottles and scrap metal in Pangasinan and selling these items in Manila.

    We therefore hold that petitioner is a common carrier whether its carrying of goods is done on an irregular rather than scheduled manner, and with an only limited clientele. A common carrier need not have fixed and publicly known routes. Neither does it have to maintain terminals or issue tickets.

    To be sure, petitioner fits the test of a common carrier as laid down in Bascos v. Court of Appeals. 24 The test to determine a common carrier is "whether the given undertaking is a part of the business engaged in by the carrier which he has held out to the general public as his occupation rather than the quantity or extent of the business transacted." 25 In the case at bar, the petitioner admitted that it is engaged in the business of shipping and lighterage, 26 offering its barges to the public, despite its limited clientele for carrying or transporting goods by water for compensation. 27

    On the second issue, we uphold the findings of the lower courts that petitioner failed to exercise extraordinary diligence in its care and custody of the consignee’s goods.

    Common carriers are bound to observe extraordinary diligence in the vigilance over the goods transported by them. 28 They are presumed to have been at fault or to have acted negligently if the goods are lost, destroyed or deteriorated. 29 To overcome the presumption of negligence in the case of loss, destruction or deterioration of the goods, the common carrier must prove that it exercised extraordinary diligence. There are, however, exceptions to this rule. Article 1734 of the Civil Code enumerates the instances when the presumption of negligence does not attach:chanrob1es virtual 1aw library

    Art. 1734. Common carriers are responsible for the loss, destruction, or deterioration of the goods, unless the same is due to any of the following causes only:chanrob1es virtual 1aw library

    (1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;

    (2) Act of the public enemy in war, whether international or civil;

    (3) Act or omission of the shipper or owner of the goods;

    (4) The character of the goods or defects in the packing or in the containers;

    (5) Order or act of competent public authority.

    In the case at bar, the barge completely sank after its towing bits broke, resulting in the total loss of its cargo. Petitioner claims that this was caused by a typhoon, hence, it should not be held liable for the loss of the cargo. However, petitioner failed to prove that the typhoon is the proximate and only cause of the loss of the goods, and that it has exercised due diligence before, during and after the occurrence of the typhoon to prevent or minimize the loss. 30 The evidence show that, even before the towing bits of the barge broke, it had already previously sustained damage when it hit a sunken object while docked at the Engineering Island. It even suffered a hole. Clearly, this could not be solely attributed to the typhoon. The partly-submerged vessel was refloated but its hole was patched with only clay and cement. The patch work was merely a provisional remedy, not enough for the barge to sail safely. Thus, when petitioner persisted to proceed with the voyage, it recklessly exposed the cargo to further damage. A portion of the cross-examination of Alfredo Cunanan, cargo-surveyor of Tan-Gatue Adjustment Co., Inc., states:chanrob1es virtual 1aw library

    CROSS-EXAMINATION BY ATTY. DONN LEE: 31

    x       x       x


    q Can you tell us what else transpired after that incident?

    a After the first accident, through the initiative of the barge owners, they tried to pull out the barge from the place of the accident, and bring it to the anchor terminal for safety, then after deciding if the vessel is stabilized, they tried to pull it to the consignee’s warehouse, now while on route another accident occurred, now this time the barge totally hitting something in the course.

    q You said there was another accident, can court the nature of the second accident?

    a The sinking, sir.

    q Can you tell the nature . . . can you tell the court, if you know what caused the sinking?

    a Mostly it was related to the first accident because there was already a whole (sic) on the bottom part of the barge.

    x       x       x


    This is not all. Petitioner still headed to the consignee’s wharf despite knowledge of an incoming typhoon. During the time that the barge was heading towards the consignee’s wharf on September 5, 1990, typhoon "Loleng" has already entered the Philippine area of responsibility. 32 A part of the testimony of Robert Boyd, Cargo Operations Supervisor of the petitioner, reveals:chanrob1es virtual 1aw library

    DIRECT-EXAMINATION BY ATTY. LEE: 33

    x       x       x


    q Now, Mr. Witness, did it not occur to you it might be safer to just allow the Barge to lie where she was instead of towing it?

    a Since that time that the Barge was refloated, GMC (General Milling Corporation, the consignee) as I have said was in a hurry for their goods to be delivered at their Wharf since they needed badly the wheat that was loaded in PSTSI-3. It was needed badly by the consignee.

    q And this is the reason why you towed the Barge as you did?

    a Yes, sir.

    x       x       x


    CROSS-EXAMINATION BY ATTY. IGNACIO: 34

    x       x       x


    q And then from ISLOFF Terminal you proceeded to the premises of the GMC? Am I correct?

    a The next day, in the morning, we hired for additional two (2) tugboats as I have stated.

    q Despite of the threats of an incoming typhoon as you testified a while ago?

    a It is already in an inner portion of Pasig River. The typhoon would be coming and it would be dangerous if we are in the vicinity of Manila Bay.

    q But the fact is, the typhoon was incoming? Yes or no?

    a Yes.

    q And yet as a standard operating procedure of your Company, you have to secure a sort of Certification to determine the weather condition, am I correct?

    a Yes, sir.

    q So, more or less, you had the knowledge of the incoming typhoon, right?

    a Yes, sir.

    q And yet you proceeded to the premises of the GMC?

    a ISLOFF Terminal is far from Manila Bay and anytime even with the typhoon if you are already inside the vicinity or inside Pasig entrance, it is a safe place to tow upstream.

    Accordingly, the petitioner cannot invoke the occurrence of the typhoon as force majeure to escape liability for the loss sustained by the private Respondent. Surely, meeting a typhoon head-on falls short of due diligence required from a common carrier. More importantly, the officers/employees themselves of petitioner admitted that when the towing bits of the vessel broke that caused its sinking and the total loss of the cargo upon reaching the Pasig River, it was no longer affected by the typhoon. The typhoon then is not the proximate cause of the loss of the cargo; a human factor, i.e., negligence had intervened.

    IN VIEW THEREOF, the petition is DENIED. The Decision of the Court of Appeals in CA-G.R. CV No. 49195 dated May 11, 2000 and its Resolution dated February 21, 2001 are hereby AFFIRMED. Costs against petitioner.chanrob1es virtua1 1aw 1ibrary

    SO ORDERED.

    Panganiban and Sandoval-Gutierrez, JJ., concur.

    Corona and Carpio Morales, JJ., on official leave.

    Endnotes:



    1. Rollo, pp. 49–59.

    2. Id., p. 61.

    3. Id., pp. 71–73.

    4. Exhibit "B," Records, p. 91.

    5. Exhibit "A," id., p. 90.

    6. Exhibits "I" and "I-1," id., pp. 107–108.

    7. Exhibit "C," id., p. 92.

    8. Exhibit "4," id., p. 144.

    9. Exhibits "G-1" and "1-A," id., p. 100.

    10. Exhibits "G-2" and "1-B," id., p. 101.

    11. Ibid.

    12. Exhibit "5," Records, p. 145.

    13. Supra note 10.

    14. Exhibits "G-3" and "1-C," Records, p. 102.

    15. Exhibit "L," id., p. 110.

    16. Id., pp. 1–4.

    17. Id., pp. 21–22.

    18. Id., p. 172.

    19. Rollo, p. 22.

    20. Id., pp. 147–150.

    21. G.R. No. L-47822, 22 December 1988.

    22. Rollo, p. 127.

    23. See note 21.

    24. G.R. No. 101089, 07 April 1993, 221 SCRA 318.

    25. Id., pp. 323–324.

    26. Rollo, p. 14.

    27. Id., pp. 148–150.

    28. Article 1733, Civil Code. Common carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all the circumstances of each case.

    Such extraordinary diligence in vigilance over the goods is further expressed in articles 1734, 1735, and 1745, Nos. 5, 6, and 7, while the extraordinary diligence for the safety of the passengers is further set forth in articles 1755 and 1756.

    29. Article 1735, Civil Code. In all cases other than those mentioned in Nos. 1, 2, 3, 4, and 5 of the preceding article, if the goods are lost, destroyed or deteriorated, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence as required in article 1733.

    30. Article 1739, Civil Code. In order that the common carrier may be exempted from responsibility, the natural disaster must have been the proximate and only cause of the loss. However, the common carrier must exercise due diligence to prevent or minimize the loss before, during and after the occurrence of flood, storm or other natural disaster in order that the common carrier may be exempted from liability for the loss, destruction, or deterioration of the goods. The same duty is incumbent upon the common carrier in case of an act of the public enemy referred to in article 1734, no. 2.

    31. TSN, 04 March 1993, pp. 12–13.

    32. Certification dated 02 August 1991 issued by the Philippine Atmospheric Geophysical & Astronomical Services Administration (PAGASA) Exhibit "7," Records, p. 147.

    33. TSN, 09 March 1993, pp. 70–71.

    34. Id., pp. 76–77.

    G.R. No. 147246   August 19, 2003 - ASIA LIGHTERAGE AND SHIPPING, INC. v. COURT OF APPEALS, ET AL.


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