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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
 

 
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October-2003 Jurisprudence                 

  • A.M. No. P-02-1548 October 1, 2003 - ROBERT E. VILLAROS v. RODOLFO ORPIANO

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  • G.R. No. 146569 October 6, 2003 - PEOPLE OF THE PHIL. v. JOHN NEQUIA

  • A.M. Nos. P-03-1744–45 October 7, 2003 - FE ALBANO MADRID v. ANTONIO T. QUEBRAL

  • G.R. No. 135377 October 7, 2003 - DSR-SENATOR LINES, ET AL. v. FEDERAL PHOENIX ASSURANCE CO., INC.

  • G.R. No. 149453 October 7, 2003 - PEOPLE OF THE PHIL., ET AL. v. PANFILO M. LACSON

  • G.R. No. 149717 October 7, 2003 - EASTERN ASSURANCE & SURETY CORP. v. LTFRB

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  • G.R. No. 146118 October 8, 2003 - SAMUEL SAMARCA v. ARC-MEN INDUSTRIES, INC.

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  • G.R. No. 149420 October 8, 2003 - SONNY LO v. KJS ECO-FORMWORK SYSTEM PHIL., INC.

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  • G.R. No. 153751 October 8, 2003 - MID PASIG LAND DEVELOPMENT CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 154579 October 8, 2003 - MA. LOURDES R. DE GUZMAN v. PEOPLE OF THE PHIL.

  • A.M. No. P-96-1179 October 10, 2003 - WINSTON C. CASTELO v. CRISTOBAL C. FLORENDO

  • G.R. No. 110604 October 10, 2003 - BUENAVENTURA S. TENORIO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 140917 October 10, 2003 - MENELIETO A. OLANDA v. LEONARDO G. BUGAYONG, ET AL.

  • A.M. No. P-02-1640 October 13, 2003 - SAAD ANJUM v. CESAR L. ABACAHIN, ET AL.

  • G.R. No. 122765 October 13, 2003 - PEOPLE OF THE PHIL. v. EDGARDO L. VARGAS

  • G.R. No. 141942 October 13, 2003 - PEOPLE OF THE PHIL. v. JIMMY PONCE JAMON

  • G.R. No. 143842 October 13, 2003 - PEOPLE OF THE PHIL. v. MANGI L. ADAM

  • G.R. No. 144662 October 13, 2003 - SPS. EFREN AND DIGNA MASON, ET AL. v. COURT OF APPEALS, ET AL.

  • A.M. No. MTJ-02-1459 October 14, 2003 - IMELDA Y. MADERADA v. ERNESTO H. MEDIODEA

  • A.M. No. P-03-1674 October 14, 2003 - PABLO B. FRANCISCO v. OLIVIA M. LAUREL

  • A.M. No. RTJ-03-1805 October 14, 2003 - TEODORA A. RUIZ v. ROLANDO G. HOW

  • G.R. No. 153157 October 14, 2003 - PHILIPPINE AIRLINES v. ARTHUR B. TONGSON

  • A.M. No. RTJ-02-1697 October 15, 2003 - EUGENIO K. CHAN v. JOSE S. MAJADUCON

  • A.M. No. RTJ-02-1699 October 15, 2003 - VERNETTE UMALI-PACO, ET AL. v. REINATO G. QUILALA, ET AL.

  • A.M. No. RTJ-03-1808 October 15, 2003 - RADELIA SY, ET AL. v. ANTONIO FINEZA

  • G.R. Nos. 123144, 123207 & 123536 October 15, 2003 - PABLO P. BURGOS, ET AL. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 126119 October 15, 2003 - PEOPLE OF THE PHIL v. GILDO B. PELOPERO PNP

  • G.R. No. 130662 October 15, 2003 - PEOPLE OF THE PHIL. v. SERGIO ABON

  • G.R. No. 138364 October 15, 2003 - PEOPLE OF THE PHIL. v. ROGELIO VILLANUEVA

  • G.R. No. 142381 October 15, 2003 - PHILIPPINE BLOOMING MILLS, INC., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 142595 October 15, 2003 - RACHEL C. CELESTIAL v. JESSE CACHOPERO

  • G.R. Nos. 148139-43 October 15, 2003 - PEOPLE OF THE PHIL. v. HERMENIO CANOY

  • G.R. No. 156273 October 15, 2003 - HEIRS OF TIMOTEO MORENO, ET AL. v. MACTAN-CEBU INT’L. AIRPORT AUTHORITY

  • A.M. No. SCC-00-6-P October 16, 2003 - RE: Ma. Corazon M. Molo

  • A.M. No. P-02-1592 October 16, 2003 - LUZITA ALPECHE v. EXPEDITO B. BATO

  • G.R. No. 141074 October 16, 2003 - PEOPLE OF THE PHIL. v. NORLY LIBRADO

  • G.R. No. 144881 October 16, 2003 - BETTY T. CHUA v. ABSOLUTE MNGT. CORP., ET AL.

  • G.R. Nos. 147650-52 October 16, 2003 - PEOPLE OF THE PHIL. v. RODOLFO S. PEPITO

  • G.R. No. 152492 October 16, 2003 - PALMA DEVELOPMENT CORP. v. MUN. OF MALANGAS

  • G.R. Nos. 153991-92 October 16, 2003 - ANWAR BERUA BALINDONG v. COMELEC, ET AL.

  • A.M. No. P-01-1475 October 17, 2003 - MANUEL R. AQUINO v. JOCELYN C. FERNANDEZ

  • G.R. No. 131399 October 17, 2003 - ANGELITA AMPARO GO v. OFFICE OF THE OMBUDSMAN, ET AL.

  • G.R. Nos. 133759-60 October 17, 2003 - PEOPLE OF THE PHIL. v. LEONITO LORENZO

  • G.R. Nos. 148673-75 October 17, 2003 - PEOPLE OF THE PHIL. v. FLORENCIO R. ABANILLA

  • G.R. No. 150286 October 17, 2003 - ELCEE FARMS, INC., ET AL. v. PAMPILO SEMILLANO, ET AL.

  • G.R. No. 142885 October 22, 2003 - PEOPLE OF THE PHIL. v. WILLIAM TIU, ET AL.

  • A.M. No. MTJ-01-1368 October 23, 2003 - JOSE GODOFREDO M. NAUI v. MARCIANO C. MAURICIO, SR.

  • G.R. No. 120409 October 23, 2003 - PEOPLE OF THE PHIL. v. WILLIAMSON PICKRELL, ET AL.

  • G.R. No. 120670 October 23, 2003 - PEOPLE OF THE PHIL. v. HEDISHI SUZUKI

  • G.R. No. 125689 October 23, 2003 - PEOPLE OF THE PHIL. v. ANTONIO SATIOQUIA

  • G.R. No. 127153 October 23, 2003 - PEOPLE OF THE PHIL. v. SATUR G. APOSAGA

  • G.R. No. 132788 October 23, 2003 - PEOPLE OF THE PHIL. v. ISAIAS FERNANDEZ, ET AL.

  • G.R. No. 134485 October 23, 2003 - PEOPLE OF THE PHIL. v. OSCAR PEREZ

  • G.R. Nos. 134573-75 October 23, 2003 - PEOPLE OF THE PHIL. v. VICENTE BINARAO, ET AL.

  • G.R. No. 136849 October 23, 2003 - PEOPLE OF THE PHIL. v. NESTOR A. CODERES

  • G.R. No. 138456 October 23, 2003 - PEOPLE OF THE PHIL. v. ROLANDO P. DEDUYO

  • G.R. No. 140247 October 23, 2003 - ALEX ASUNCION, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 143252 October 23, 2003 - CEBU MARINE BEACH RESORT, ET AL. v. NLRC, ET AL.

  • G.R. Nos. 146368-69 October 23, 2003 - MADELEINE MENDOZA-ONG v. SANDIGANBAYAN, ET AL.

  • G.R. No. 146608 October 23, 2003 - SPS. CONSTANTE & AZUCENA FIRME v. BUKAL ENTERPRISES AND DEV’T. CORP.

  • G.R. No. 147369 October 23, 2003 - SPS. PATRICK and RAFAELA JOSE v. SPS. HELEN and ROMEO BOYON

  • G.R. No. 147549 October 23, 2003 - JESUS DELA ROSA, ET AL. v. SANTIAGO CARLOS, ET AL.

  • G.R. No. 149149 October 23, 2003 - ERNESTO SYKI v. SALVADOR BEGASA

  • G.R. No. 149725 October 23, 2003 - OSCAR MAGNO v. PEOPLE OF THE PHIL.

  • G.R. Nos. 150493-95 October 23, 2003 - PEOPLE OF THE PHIL. v. CIRILO MACABATA

  • G.R. No. 150946 October 23, 2003 - MUNICIPAL BOARD OF CANVASSERS OF GLAN, ET AL. v. COMELEC, ET AL.

  • G.R. No. 152135 October 23, 2003 - PEOPLE OF THE PHIL. v. MARCOS GIALOLO, ET AL.

  • G.R. No. 152716 October 23, 2003 - ELNA MERCADO-FEHR v. BRUNO FEHR

  • G.R. Nos. 154796-97 October 23, 2003 - RAYMUNDO A. BAUTISTA v. COMELEC, ET AL.

  • G.R. No. 155692 October 23, 2003 - PHIVIDEC INDUSTRIAL AUTHORITY, ET AL. v. CAPITOL STEEL CORP., ET AL.

  • G.R. No. 155717 October 23, 2003 - ALBERTO JARAMILLA v. COMELEC, ET AL.

  • A.M. No. RTJ-00-1586 October 24, 2003 - THELMA C. BALDADO v. ARNULFO O. BUGTAS

  • G.R. No. 119775 October 24, 2003 - JOHN HAY PEOPLES ALTERNATIVE COALITION, ET AL. v. VICTOR LIM, ET AL.

  • G.R. No. 119847 October 24, 2003 - JENNY ZACARIAS v. NATIONAL POLICE COMMISSION, ET AL.

  • G.R. No. 137597 October 24, 2003 - PEOPLE OF THE PHIL. v. JASON S. NAVARRO, ET AL.

  • G.R. No. 141615 October 24, 2003 - MAC ADAMS METAL ENGINEERING WORKERS UNION-INDEPENDENT, ET AL. v. MAC ADAMS METAL ENGINEERING, ET AL.

  • G.R. No. 144439 October 24, 2003 - SOUTHEAST ASIA SHIPPING CORP. v. SEAGULL MARITIME CORP., ET AL.

  • G.R. No. 148120 October 24, 2003 - RODRIGO QUIRAO, ET AL. v. LYDIA QUIRAO, ET AL.

  • G.R. No. 148597 October 24, 2003 - GRACE F. MUNSAYAC-DE VILLA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 152285 October 24, 2003 - PEOPLE OF THE PHIL. v. JOSE OBESO

  • G.R. Nos. 152589 and 152758 October 24, 2003 - PEOPLE OF THE PHIL. v. ANTONIO MENDOZA

  • G.R. No. 153828 October 24, 2003 - LINCOLN L. YAO v. NORMA C. PERELLO, ET AL.

  • G.R. No. 139181 October 27, 2003 - PEOPLE OF THE PHIL. v. JIMMY AQUINO

  • G.R. No. 143817 October 27, 2003 - PEOPLE OF THE PHIL. v. ALEJANDRO BAJAR

  • A.C. No. 5829 October 28, 2003 - DANIEL LEMOINE v. AMADEO E. BALON, JR.

  • A.M. No. P-02-1581 October 28, 2003 - MA. CORAZON M. ANDAL v. NICOLAS A. TONGA

  • G.R. No. 134563 October 28, 2003 - PEOPLE OF THE PHIL. v. FRANCISCO DALA

  • G.R. No. 138933 October 28, 2003 - PEOPLE OF THE PHIL. v. JERRYVIE D. GUMAYAO

  • G.R. No. 150540 October 28, 2003 - DIMALUB P. NAMIL, ET AL. v. COMELEC, ET AL

  • G.R. No. 155206 October 28, 2003 - GSIS v. EDUARDO M. SANTIAGO

  •  





     
     

    G.R. No. 135377   October 7, 2003 - DSR-SENATOR LINES, ET AL. v. FEDERAL PHOENIX ASSURANCE CO., INC.

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 135377. October 7, 2003.]

    DSR-SENATOR LINES AND C.F. SHARP AND COMPANY, INC., Petitioners, v. FEDERAL PHOENIX ASSURANCE CO., INC., Respondent.

    D E C I S I O N


    SANDOVAL-GUTIERREZ, J.:


    Before us is a petition for review on certiorari 1 assailing the Decision 2 dated June 5, 1998 of the Court of Appeals in CA-G.R. CV No. 50833 which affirmed the Decision of the Regional Trial Court (RTC), Manila City, Branch 16, in Civil Case No. 94-69699, "Federal Phoenix Assurance Company, Inc. v. DSR-Senator Lines and C.F. Sharp & Co., Inc.," for damages arising from the loss of cargo while in transit.chanrob1es virtua1 1aw 1ibrary

    Berde Plants, Inc. (Berde Plants) delivered 632 units of artificial trees to C.F. Sharp and Company, Inc. (C.F. Sharp), the General Ship Agent of DSR-Senator Lines, a foreign shipping corporation, for transportation and delivery to the consignee, Al-Mohr International Group, in Riyadh, Saudi Arabia. C.F. Sharp issued International Bill of Lading No. SENU MNL-26548 3 for the cargo with an invoice value of $34,579.60. Under the Bill of Lading, the port of discharge for the cargo was at the Khor Fakkan port and the port of delivery was Riyadh, Saudi Arabia, via Port Dammam. The cargo was loaded in M/S "Arabian Senator."cralaw virtua1aw library

    Federal Phoenix Assurance Company, Inc. (Federal Phoenix Assurance) insured the cargo against all risks in the amount of P941,429.61. 4

    On June 7, 1993, M/S "Arabian Senator" left the Manila South Harbor for Saudi Arabia with the cargo on board. When the vessel arrived in Khor Fakkan Port, the cargo was reloaded on board DSR-Senator Lines’ feeder vessel, M/V "Kapitan Sakharov," bound for Port Dammam, Saudi Arabia. However, while in transit, the vessel and all its cargo caught fire.

    On July 5, 1993, DSR-Senator Lines informed Berde Plants that M/V "Kapitan Sakharov" with its cargo was gutted by fire and sank on or about July 4, 1993. On December 16, 1993, C.F. Sharp issued a certification to that effect.

    Consequently, Federal Phoenix Assurance paid Berde Plants P941,429.61 corresponding to the amount of insurance for the cargo. In turn Berde Plants executed in its favor a "Subrogation Receipt" 5 dated January 17, 1994.

    On February 8, 1994, Federal Phoenix Assurance sent a letter to C.F. Sharp demanding payment of P941,429.61 on the basis of the Subrogation Receipt. C.F. Sharp denied any liability on the ground that such liability was extinguished when the vessel carrying the cargo was gutted by fire.

    Thus, on March 11, 1994, Federal Phoenix Assurance filed with the RTC, Branch 16, Manila a complaint for damages against DSR-Senator Lines and C.F. Sharp, praying that the latter be ordered to pay actual damages of P941,429.61, compensatory damages of P100,000.00 and costs.

    On August 22, 1995, the RTC rendered a Decision in favor of Federal Phoenix Assurance, the dispositive portion of which reads:jgc:chanrobles.com.ph

    "WHEREFORE, premises considered, judgment is hereby rendered in favor of plaintiff and against the defendants who are hereby ordered jointly and severally to pay plaintiff:chanrob1es virtua1 1aw 1ibrary

    I. The amount of P941,439.61 (should be P941,429.61 6) with legal interest of 6% per annum from the date of the letter of demand of February 8, 1993 (EXH. L) and 12% per annum from the date the judgment becomes final and executory until its satisfaction (Eastern Shipping Lines v. Court of Appeals, G.R. No. 97412, July 12, 1994);

    II. The amount of P15,000.00 by way of reasonable attorney’s fees; and

    III. To pay costs.

    "The counterclaim of defendants is DISMISSED.

    "SO ORDERED." 7

    On appeal, the Court of Appeals rendered a Decision dated June 5, 1998, affirming the RTC Decision, thus:jgc:chanrobles.com.ph

    "In the present recourse, the appellant carrier was presumed to have acted negligently for the fire that gutted the feeder vessel and the consequent loss or destruction of the cargo. Hence, the appellant carrier is liable for appellee’s claim under the New Civil Code of the Philippines.

    "Contrary to C.F. Sharp and Co., Inc.’s pose, its liability as ship agent continued and remained until the cargo was delivered to the consignee. The status of the appellant as ship agent subsisted and its liability as a ship agent was co-terminous with and subsisted as long as the cargo was not delivered to the consignee under the terms of the Bill of Lading.

    "IN LIGHT OF ALL THE FOREGOING, the appeal of the appellants is DISMISSED. The Decision appealed from is affirmed. With costs against the appellants.

    "SO ORDERED." 8

    On September 7, 1998, the Court of Appeals denied the motion for reconsideration of DSR-Senator Lines and C.F. Sharp, prompting them to file with this Court the instant petition.cralaw : red

    We find the petition bereft of merit.

    Article 1734 of the Civil Code provides:jgc:chanrobles.com.ph

    "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."cralaw virtua1aw library

    Fire is not one of those enumerated under the above provision which exempts a carrier from liability for loss or destruction of the cargo.

    In Eastern Shipping Lines, Inc. v. Intermediate Appellate Court, 9 we ruled that since the peril of fire is not comprehended within the exceptions in Article 1734, then the common carrier shall be presumed to have been at fault or to have acted negligently, unless it proves that it has observed the extraordinary diligence required by low.

    Even if fire were to be considered a natural disaster within the purview of Article 1734, it is required under Article 1739 10 of the same Code that the natural disaster must have been the proximate and only cause of the loss, and that the carrier has exercised due diligence to prevent or minimize the loss before, during or after the occurrence of the disaster.

    We have held that a common carrier’s duty to observe the requisite diligence in the shipment of goods lasts from the time the articles are surrendered to or unconditionally placed in the possession of, and received by, the carrier for transportation until delivered to or until the lapse of a reasonable time for their acceptance by the person entitled to receive them. When the goods shipped either are lost or arrive in damaged condition, a presumption arises against the carrier of its failure to observe that diligence, and there need not be an express finding of negligence to hold it liable. 11chanrob1es virtua1 1aw 1ibrary

    Common carriers are obliged to observe extraordinary diligence in the vigilance over the goods transported by them. Accordingly, they are presumed to have been at fault or to have acted negligently if the goods are lost, destroyed or deteriorated. There are very few instances when the presumption of negligence does not attach and these instances are enumerated in Article 1739. In those cases where the presumption is applied, the common carrier must prove that it exercised extraordinary diligence in order to overcome the presumption. 12

    Respondent Federal Phoenix Assurance raised the presumption of negligence against petitioners. However, they failed to overcome it by sufficient proof of extraordinary diligence.

    WHEREFORE, the instant petition is DENIED. The assailed Decision of the Court of Appeals dated June 5, 1998, in CA-G.R. CV No. 50833 is hereby AFFIRMED.

    SO ORDERED.

    Puno, Panganiban and Carpio Morales, JJ., concur.

    Corona, J., is on leave.

    Endnotes:



    1. Pursuant to Rule 45 of the 1997 Rules of Civil Procedure, as amended.

    2. Penned by now Supreme Court Justice Romeo J. Callejo, Sr., with Justices Marina L. Buzon and Mariano M. Umali (retired) concurring.

    3. Folder of Exhibits at 11.

    4. Id. at 1.

    5. Id. at 16.

    6. Id. at 15-16.

    7. Rollo at 60.

    8. Id. at 47.

    9. G.R. Nos. L-69044 and L-71478, May 29, 1987, 150 SCRA 463, 470-472.

    10. "Art. 1739. 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 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."cralaw virtua1aw library

    11. Eastern Shipping Lines, Inc. v. Court of Appeals, G.R. No. 97412, July 12, 1994, 234 SCRA 78, 85, citing Ganzon v. Court of Appeals, G.R. No. L-48757, May 30, 1988, 161 SCRA 646, Kui Bai v. Dollar Steamship Lines, 52 Phil. 863, Philippine National Railways v. Court of Appeals, G.R. No. L-55347, October 4, 1985, 139 SCRA 87 and Metro Port Service, Inc. v. Court of Appeals, G.R. No. L-57582, August 24, 1984, 131 SCRA 365.

    12. Bascos v. Court Of Appeals, G.R. No. 101089, April 7, 1993, 221 SCRA 318, 325.

    G.R. No. 135377   October 7, 2003 - DSR-SENATOR LINES, ET AL. v. FEDERAL PHOENIX ASSURANCE CO., INC.


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