National Development Company vs. Court of Appeals,
G.R. No. L-49407, August 19, 1988
Facts:
A memorandum agreement entered into
between defendants NDC and MCP on September 13, 1962, NDC as the first
preferred mortgagee of three ocean going vessels including one with the name
'Dona Nati' appointed defendant MCP as its agent to manage and operate said
vessel for and in its behalf and account. E. Philipp Corporation of New York loaded on
board the vessel "Dona Nati" at San Francisco, California, a total of
1,200 bales of American raw cotton consigned to the order of Manila Banking
Corporation, Manila and the People's Bank and Trust Company acting for and in
behalf of the Pan Asiatic Commercial Company, Inc., who represents Riverside
Mills Corporation. Also loaded on the same vessel at Tokyo, Japan, were the
cargo of Kyokuto Boekui, Kaisa, Ltd., consigned to the order of Manila Banking
Corporation consisting of 200 cartons of sodium lauryl sulfate and 10 cases of
aluminum foil . En route to Manila the vessel Dofia Nati figured in a collision on April 15, 1964 at
Ise Bay, Japan with a Japanese vessel 'SS Yasushima
Maru' as a result of which 550 bales of aforesaid cargo of American raw
cotton were lost and/or destroyed, of which 535 bales as damaged were landed
and sold on the authority of the General Average Surveyor for Yen 6,045,-500
and 15 bales were not landed and deemed lost. The damaged and lost cargoes was worth
P344,977.86 which amount, the herein private respondent as insurer, paid to the
Riverside Mills Corporation.
Development Insurance and Surety
Corporation filed before the then Court of First Instance of Manila an action
for the recovery of the sum of P364,915.86 plus attorney's fees of P10,000.00
against NDC and MCP. Interposing the defense that the complaint states no cause
of action and even if it does, the action has prescribed, MCP filed on May 12,
1965 a motion to dismiss.
Trial court rendered a decision
ordering the defendants MCP and NDC to pay jointly and solidarity to DISC the
sum of P364,915.86 plus the legal rate of interest. CA affirming in toto the
decision of the trial court.
Issue 1 :
WHETHER OR NOT THE COURT OF APPEALS
ERRED IN APPLYING ARTICLE 827 OF THE CODE OF COMMERCE AND NOT SECTION 4(2a) OF
COMMONWEALTH ACT NO. 65, OTHERWISE KNOWN AS THE CARRIAGE OF GOODS BY SEA ACT IN
DETERMINING THE LIABILITY FOR LOSS OF CARGOES RESULTING FROM THE COLLISION OF
ITS VESSEL "DONA NATI" WITH THE YASUSHIMA MARU"OCCURRED AT ISE
BAY, JAPAN OR OUTSIDE THE TERRITORIAL JURISDICTION OF THE PHILIPPINES.
Held 1:
NO. This issue has already been laid
to rest by this Court of Eastern Shipping Lines Inc. v. IAC (1 50 SCRA 469-470
[1987]) where it was held under similar circumstance "that the law of the
country to which the goods are to be transported governs the liability of the
common carrier in case of their loss, destruction or deterioration"
(Article 1753, Civil Code). Thus, the rule was specifically laid down that for
cargoes transported from Japan to the Philippines, the liability of the carrier
is governed primarily by the Civil Code and in all matters not regulated by
said Code, the rights and obligations of common carrier shall be governed by
the Code of commerce and by laws (Article 1766, Civil Code). Hence, the
Carriage of Goods by Sea Act, a special law, is merely suppletory to the provision
of the Civil Code.
It appears, however, that collision
falls among matters not specifically regulated by the Civil Code, so that no
reversible error can be found in respondent courses application to the case at
bar of Articles 826 to 839, Book Three of the Code of Commerce, which deal
exclusively with collision of vessels.
More specifically, Article 826 of
the Code of Commerce provides that where collision is imputable to the
personnel of a vessel, the owner of the vessel at fault, shall indemnify the
losses and damages incurred after an expert appraisal. But more in point to the
instant case is Article 827 of the same Code, which provides that if the
collision is imputable to both vessels, each one shall suffer its own damages
and both shall be solidarily responsible for the losses and damages suffered by
their cargoes.
Significantly,
under the provisions of the Code of Commerce, particularly Articles 826 to 839,
the shipowner or carrier, is not exempt from liability for damages arising from
collision due to the fault or negligence of the captain. Primary liability is
imposed on the shipowner or carrier in recognition of the universally accepted
doctrine that the shipmaster or captain is merely the representative of the
owner who has the actual or constructive control over the conduct of the voyage
(Y'eung Sheng Exchange and Trading Co. v. Urrutia & Co., 12 Phil. 751
[1909]).
Issue 2:
Whether or not COURT OF APPEALS
ERRED IN NOT HOLDING THAT THE CAUSE OF ACTION OF RESPONDENT DEVELOPMENT
INSURANCE AND SURETY CORPORATION IF ANY EXISTS AS AGAINST HEREIN PETITIONER
MARITIME COMPANY OF THE PHILIPPINES IS BARRED BY THE STATUTE OF LIMITATION AND
HAS ALREADY PRESCRIBED.
Held 2:
NO. Trial court correctly found that
the bills of lading issued allow trans-shipment of the cargo, which simply means
that the date of arrival of the ship Dona Nati on April 18,1964 was merely
tentative to give allowances for such contingencies that said vessel might not
arrive on schedule at Manila and therefore, would necessitate the
trans-shipment of cargo, resulting in consequent delay of their arrival. In
fact, because of the collision, the cargo which was supposed to arrive in
Manila on April 18, 1964 arrived only on June 12, 13, 18, 20 and July 10, 13
and 15, 1964. Hence, had the cargoes in question been saved, they could have
arrived in Manila on the above-mentioned dates. Accordingly, the complaint in
the instant case was filed on April 22, 1965, that is, long before the lapse of
one (1) year from the date the lost or damaged cargo "should have been
delivered" in the light of Section 3, sub-paragraph (6) of the Carriage of
Goods by Sea Act.
Issue 3:
Whether or not COURT OF APPEALS
ERRED IN FINDING THAT THE LOSS OF OR DAMAGES TO THE CARGO OF 550 BALES OF
AMERICAN RAW COTTON, DAMAGES WERE CAUSED IN THE AMOUNT OF P344,977.86 INSTEAD
OF ONLY P110,000 AT P200.00 PER BALE AS ESTABLISHED IN THE BILLS OF LADING AND
ALSO IN HOLDING THAT PARAGRAPH 1O OF THE BILLS OF LADING HAS NO APPLICATION IN
THE INSTANT CASE THERE BEING NO GENERAL AVERAGE TO SPEAK OF.
Held 3:
NO. MCP's contention is devoid of
merit. The declared value of the goods was stated in the bills of lading and
corroborated no less by invoices offered as evidence ' during the trial.
Besides, common carriers, in the language of the court in Juan Ysmael &
Co., Inc. v. Barrette et al., (51 Phil. 90 [1927]) "cannot limit its
liability for injury to a loss of goods where such injury or loss was caused by
its own negligence." Negligence of the captains of the colliding vessel
being the cause of the collision, and the cargoes not being jettisoned to save
some of the cargoes and the vessel, the trial court and the Court of Appeals
acted correctly in not applying the law on averages (Articles 806 to 818, Code
of Commerce).
AS TO THE SUBJECT OF AGENCY
MCP next contends
that it cannot be liable solidarity with NDC because it is merely the manager
and operator of the vessel Dona Nati not a ship agent. As the general managing
agent, according to MCP, it can only be liable if it acted in excess of its
authority.
As found by the
trial court and by the Court of Appeals, the Memorandum Agreement of September
13, 1962 (Exhibit 6, Maritime) shows that NDC appointed MCP as Agent, a term
broad enough to include the concept of Ship-agent in Maritime Law. In fact, MCP
was even conferred all the powers of the owner of the vessel, including the
power to contract in the name of the NDC (Decision, CA G.R. No. 46513, p. 12;
Rollo, p. 40). Consequently, under the circumstances, MCP cannot escape
liability.
It is well settled
that both the owner and agent of the offending vessel are liable for the damage
done where both are impleaded (Philippine Shipping Co. v. Garcia Vergara, 96
Phil. 281 [1906]); that in case of collision, both the owner and the agent are
civilly responsible for the acts of the captain (Yueng Sheng Exchange and
Trading Co. v. Urrutia & Co., supra citing Article 586 of the Code of
Commerce; Standard Oil Co. of New York v. Lopez Castelo, 42 Phil. 256, 262
[1921]); that while it is true that the liability of the naviero in the sense
of charterer or agent, is not expressly provided in Article 826 of the Code of
Commerce, it is clearly deducible from the general doctrine of jurisprudence
under the Civil Code but more specially as regards contractual obligations in
Article 586 of the Code of Commerce. Moreover, the Court held that both the
owner and agent (Naviero) should be declared jointly and severally liable,
since the obligation which is the subject of the action had its origin in a
tortious act and did not arise from contract (Verzosa and Ruiz, Rementeria y
Cia v. Lim, 45 Phil. 423 [1923]). Consequently, the agent, even though he may
not be the owner of the vessel, is liable to the shippers and owners of the
cargo transported by it, for losses and damages occasioned to such cargo,
without prejudice, however, to his rights against the owner of the ship, to the
extent of the value of the vessel, its equipment, and the freight (Behn Meyer Y
Co. v. McMicking et al. 11 Phil. 276 [1908]).