Petitioner Vs Vs Respondents Diosdado Z. Reloj, Jr. Del Rosario & Del Rosario
Petitioner Vs Vs Respondents Diosdado Z. Reloj, Jr. Del Rosario & Del Rosario
Petitioner Vs Vs Respondents Diosdado Z. Reloj, Jr. Del Rosario & Del Rosario
SYLLABUS
DECISION
KAPUNAN , J : p
Eastern Shipping Lines, Inc. (ESLI) loaded on board SS Eastern Explorer in Kobe,
Japan, the following shipment for carriage to Manila and Cebu, freight pre-paid and in
good order and condition, viz: (a) two (2) boxes internal combustion engine parts,
consigned to William Lines, Inc. under Bill of Lading No. 042283; (b) ten (10) metric
tons (334 bags) ammonium chloride, consigned to Orca's Company under Bill of Lading
No. KCE-12; (c) two hundred (200) bags Glue 300, consigned to Pan Oriental Match
Company under Bill of Lading No. KCE-8; and (d) garments, consigned to Ding Velayo
under Bills of Lading Nos. KMA-73 and KMA-74.
While the vessel was off Okinawa, Japan, a small ame was detected on the
acetylene cylinder located in the accommodation area near the engine room on the
main deck level. As the crew was trying to extinguish the re, the acetylene cylinder
suddenly exploded sending a ash of ame throughout the accommodation area, thus
causing death and severe injuries to the crew and instantly setting re to the whole
superstructure of the vessel. The incident forced the master and the crew to abandon
the ship.
Thereafter, SS Eastern Explorer was found to be a constructive total loss and its
voyage was declared abandoned.
Several hours later, a tugboat under the control of Fukuda Salvage Co. arrived
near the vessel and commenced to tow the vessel for the port of Naha, Japan.
Fire ghting operations were again conducted at the said port. After the re was
extinguished, the cargoes which were saved were loaded to another vessel for delivery
to their original ports of destination. ESLI charged the consignees several amounts
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corresponding to additional freight and salvage charges, as follows: (a) for the goods
covered by Bill of Lading No. 042283, ESLI charged the consignee the sum of
P1,927.65, representing salvage charges assessed against the goods; (b) for the
goods covered by Bill of Lading No. KCE-12, ESLI charged the consignee the sum of
P2,980.64 for additional freight and P826.14 for salvage charges against the goods;
(c) for the goods covered by Bill of Lading No. KCE-8, ESLI charged the consignee the
sum of P3,292.26 for additional freight and P4,130.68 for salvage charges against the
goods; and (d) for the goods under Bills of Lading Nos. KMA-73 and KMA-74, ESLI
charged the consignee the sum of P8,337.06 for salvage charges against the goods.
The charges were all paid Philippine Home Assurance Corporation (PHAC) under
protest for and in behalf of the consignees.
PHAC, as subrogee of the consignees, thereafter led a complaint before the
Regional Trial Court of Manila, Branch 39, against ESLI to recover the sum paid under
protest on the ground that the same were actually damages directly brought about by
the fault, negligence, illegal act and/or breach of contract of ESLI.
In its answer, ESLI contended that it exercised the diligence required by law in the
handling, custody and carriage of the shipment; that the re was caused by an
unforeseen event; that the additional freight charges are due and demandable pursuant
to the Bill of Lading; 1 and that salvage charges are properly collectible under Act No.
2616, known as the Salvage Law.
The trial court dismissed PHAC's complaint and ruled in favor of ESLI
ratiocinating thus:
The question to be resolved is whether or not the re on the vessel which
was caused by the explosion of an acetylene cylinder loaded on the same was the
fault or negligence of the defendant.
In relation to the above provision, the Supreme Court has ruled in Erlanger
& Galinger v. Swedish East Asiatic Co., Ltd ., 34 Phil. 178, that three elements are
necessary to a valid salvage claim, namely (a) a marine peril (b) service
voluntarily rendered when not required as an existing duty or from a special
contract and (c) success in whole or in part, or that the service rendered
contributed to such success.
The above elements are all present in the instant case. Salvage charges
may thus be assessed on the cargoes saved from the vessel. As provided for in
Section 13 of the Salvage Law, "The expenses of salvage, as well as the reward
for salvage or assistance, shall be a charge on the things salvaged or their value."
In Manila Railroad Co. v. Macondray Co ., 37 Phil. 583, it was also held that "when
a ship and its cargo are saved together, the salvage allowance should be charged
against the ship and cargo in the proportion of their respective values, the same
as in a case of general average . . ." Thus, the "compensation to be paid by the
owner of the cargo is in proportion to the value of the vessel and the value of the
cargo saved." ( Atlantic Gulf and Paci c Co. v. Uchida Kisen Kaisha , 42 Phil. 321).
(Memorandum for Defendant, Records, pp. 212-213).
With respect to the additional freight charged by defendant from the consignee of
the goods, the same are also validly demandable.
As provided by the Civil Code:
"Article 1174.Except in cases expressly speci ed by law, or when it is
otherwise declared by stipulation, or when the nature of the obligation require the
assumption of risk, no person shall be responsible for those events which could
not be foreseen, or which though foreseen, were inevitable."
The owners of the cargo shall defray all the expenses of this arrival as well
as the payment of the freight which, after taking into consideration the
circumstances of the case, may be fixed by agreement or by a judicial decision."
Furthermore, the terms and conditions of the Bill of Lading authorize the imposition
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of additional freight charges in case of forced interruption or abandonment of the voyage.
At the dorsal portion of the Bills of Lading issued to the consignees is this stipulation:
"12. All storage, transshipment, forwarding or other disposition of
cargo at or from a port of distress or other place where there has been a forced
interruption or abandonment of the voyage shall be at the expense of the owner,
shipper, consignee of the goods or the holder of this bill of lading who shall be
jointly and severally liable for all freight charges and expenses of every kind
whatsoever, whether payable in advance or not that may be incurred by the cargo
in addition to the ordinary freight, whether the service be performed by the named
carrying vessel or by carrier's other vessels or by strangers. All such expenses and
charges shall be due and payable day by day immediately when they are
incurred."
The bill of lading is a contract and the parties are bound by its terms (Govt. of the
Philippine Islands vs. Ynchausti and Co., 40 Phil. 219). The provision quoted is binding
upon the consignee.
Defendant therefore, can validly require payment of additional freight from the
consignee. Plaintiff can not thus recover the additional freight paid by the consignee to
defendant. (Memorandum for Defendant, Record, pp. 215-216). 2
On appeal to the Court of Appeals, respondent court a rmed the trial court's
ndings and conclusions, 3 hence, the present petition for review before this Court on
the following errors:
I. THE RESPONDENT COURT ERRONEOUSLY ADOPTED WITH
APPROVAL THE TRIAL COURT'S FINDING THAT THE BURNING OF THE SS
"EASTERN EXPLORER", RENDERING IT A CONSTRUCTIVE TOTAL LOSS, IS A
NATURAL DISASTER OR CALAMITY WHICH NOBODY WOULD LIKE TO HAPPEN,
DESPITE EXISTING JURISPRUDENCE TO THE CONTRARY.
Footnotes
If the latter shall object, and the captain and officers or a majority of them, or the captain,
if opposed to the majority, should consider certain measures necessary, they may be
executed under his responsibility, without prejudice to the right of the shippers to
proceed against the captain before the competent judge or court, if they can prove that
he acted with malice, lack of skill, or negligence.
If the persons interested in the cargo, being on board the vessel, have not been heard,
they shall not contribute to the gross average, their share being chargeable against the
captain, unless the urgency of the case should be such that the time necessary for
previous deliberations was wanting.
11. ARTICLE 814. The resolution adopted to cause the damages which constitute general
average must be necessarily be entered in the log book, stating the motives and
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reasons for the dissent, should there be any, and the irresistible and urgent causes
which impelled the captain if he acted of his own accord.
In the rst case the minutes shall be signed by all the persons present who could do so
before taking action, if possible; and if not, at the rst opportunity. In the second case,
it shall be signed by the captain and by the officers of the vessel.
In the minutes, and after the resolution, shall be stated in detail all the goods jettisoned,
and mention shall be made of the injuries caused to those kept on board. The captain
shall be obliged to deliver one copy of these minutes to the maritime judicial authority
of the rst port he may make, within twenty-four hours after his arrival, and to ratify it
immediately under oath.