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British Airways vs.

Court of Appeals
(285 SCRA 450)
Facts: On April 16, 1989, Mahtani is on his a! to "o#$a!, %n&ia 'ro# Manila( )is trip as Manila*)on+ ,on+ -ia .A/ an& th0n
)on+ ,on+*%n&ia -ia "ritish Aira!s( .rior to his &0part1r0, h0 ch0c20& in to pi0c0s o' l1++a+0 containin+ his clothin+ an& oth0r
p0rsonal 0''0cts, con'i&0nt that th0 sa#0 o1l& $0 trans'0rr0& to his "A 'li+ht( 3n'ort1nat0l!, h0n h0 arri-0& in %n&ia, h0 &isco-0r0&
that his l1++a+0 as #issin+(
4h0 R4C aar&0& Mahtani &a#a+0s hich as a''ir#0& $! CA(
%ss10: 5h0th0r or not in a contract o' air carria+0 a &0claration $! th0 pass0n+0r is n00&0& to r0co-0r a +r0at0r a#o1nt6
)0l&: A#0rican 71rispr1&0nc0 pro-i&0s that an air carri0r is not lia$l0 'or th0 loss o' $a++a+0 in an a#o1nt in 08c0ss o' th0 li#its
sp0ci'i0& in th0 tari'' hich as 'il0& ith th0 prop0r a1thoriti0s, s1ch tari'' $0in+ $in&in+ on th0 pass0n+0r r0+ar&l0ss o' th0
pass0n+0r9s lac2 o' 2nol0&+0 th0r0o' or ass0nt th0r0to( 4his &octrin0 is r0co+ni:0& in this 71ris&iction(
4h0 in0scapa$l0 concl1sion that "A ha& ai-0& th0 &0'0ns0 o' li#it0& lia$ilit! h0n it allo0& Mahtani to t0sti'! as to th0 act1al
&a#a+0s h0 inc1rr0& &10 to #isplac0#0nt o' his l1++a+0, itho1t an! o$70ction(
%t is a 0ll*s0ttl0& &octrin0 that h0r0 th0 propon0nt o''0rs 0-i&0nc0 &00#0& $! co1ns0l o' th0 a&-0rs0 part! to $0 ina&#issi$l0 'or
an! r0ason, th0 latt0r has th0 ri+ht to o$70ct( )o0-0r, s1ch ri+ht is a #0r0 pri-il0+0 hich can $0 ai-0&( ;0c0ssaril!, th0 o$70ction
#1st $0 #a&0 at th0 0arli0st opport1nit!, in cas0 o' sil0nc0 h0n th0r0 is opport1nit! to sp0a2 #a! op0rat0 as a ai-0r o' o$70ctions
Dangwa Transportation Co. vs Court of Appeals GR No. 95582 !to"er #99#
Facts:
On March 25, 1985, .0&rito C1&ia#at as ran o-0r $! a $1s op0rat0& $! <an+a 4ransportation Co#pan!, an& &ri-0n $! 4h0o&or0
/ar&i:a$al( /ar&i:a$al, $0in+ r0c2l0ss an& n0+li+0nt, has pr0#at1r0l! st0pp0& on th0 acc0l0rator o' th0 $1s 71st as h0n C1&ia#at
$oar&0& th0 sa#0( 4h0 s1&&0n 70r2 #o-0#0nt ca1s0& C1&ia#at to 'all 'ro# th0 plat'or# an& as ran o-0r $! th0! $1s( Mor0o-0r,
th0 &ri-0r &i& not i##0&iat0l! $ro1+ht th0 -icti# to th0 n0ar0st hospital 'or #0&ical att0ntion(
%ss10:
5h0th0r or not th0 &ri-0r an& $1s co#pan! ar0 lia$l0 'or th0 &0ath o' .( C1&ia#at(
)0l&:
4h0! ar0 lia$l0(
Co##on carri0rs, 'ro# th0 nat1r0 o' th0ir $1sin0ss an& r0asons o' p1$lic polic!, ar0 $o1n& to o$s0r-0 08traor&inar! &ili+0nc0 'or th0
sa'0t! o' th0 pass0n+0rs transport0& $! th0 accor&in+ to all th0 circ1#stanc0s o' 0ach cas0( A co##on carri0r is $o1n& to carr! th0
pass0n+0rs sa'0l! as 'ar as h1#an car0 an& 'or0si+ht can pro-i&0, 1sin+ th0 1t#ost &ili+0nc0 -0r! ca1tio1s p0rsons, ith a &10
r0+ar& 'or all th0 circ1#stanc0s(
%t has also $00n r0p0at0&l! h0l& that in an action $as0& on a contract o' carria+0, th0 co1rt n00& not #a20 an 08pr0ss 'in&in+ o' 'a1lt
or n0+li+0nc0 on th0 part o' th0 carri0r in or&0r to hol& it r0sponsi$l0 to pa! th0 &a#a+0s so1+ht $! th0 pass0n+0r( "! contract o'
carria+0, th0 carri0r ass1#0s th0 08pr0ss o$li+ation to transport th0 pass0n+0r to his &0stination sa'0l! an& o$s0r-0 08traor&inar!
&ili+0nc0 ith a &10 r0+ar& 'or all th0 circ1#stanc0s, an& an! in71r! that #i+ht $0 s1''0r0& $! th0 pass0n+0r is ri+ht aa! attri$1ta$l0
to th0 'a1lt or n0+li+0nc0 o' th0 carri0r( 4his is an 08c0ption to th0 +0n0ral r1l0 that n0+li+0nc0 #1st $0 pro-0&, an& it is th0r0'or0
inc1#$0nt 1pon th0 carri0r to pro-0 that it has 080rcis0& 08traor&inar! &ili+0nc0 as pr0scri$0& in Articl0s 1=>> an& 1=55 o' th0 Ci-il
Co&0(
$RT vs. NA%&DAD
?(R( ;o( 145804( F0$r1ar! 6, 200>
FAC4S:
;a-i&a& as &r1n2 h0n h0 0nt0r0& th0 $oar&in+ plat'or# o' th0 /R4( )0 +ot into an alt0rcation ith th0 S? @scartin( 4h0! ha& a
'ist'i+ht an& ;a-i&a& '0ll onto th0 trac2s an& as 2ill0& h0n a train ca#0 an& ran o-0r hi#(
4h0 )0irs o' ;a-i&a& 'il0& a co#plaint 'or &a#a+0s a+ainst @scartin, th0 train &ri-0r, (Ro#an) th0 /R4A, th0 M0tro 4ransit
Or+ani:ation an& .r1&0nt S0c1rit! A+0nc! (.r1&0nt)( 4h0 trial co1rt 'o1n& .r1&0nt an& @scartin 7ointl! an& s0-0rall! lia$l0 'or
&a#a+0s to th0 h0irs( 4h0 CA 08on0rat0& .r1&0nt an& inst0a& h0l& th0 /R4A an& th0 train &ri-0r Ro#0ro 7ointl! an& s0-0rall! lia$l0(
4h0 r0asonin+ o' th0 CA as that a contract o' carria+0 alr0a&! 08ist0& $0t00n ;a-i&a& an& /R4A ($! -irt10 o' his ha-A in+
p1rchas0& train tic20ts an& th0 lia$ilit! as ca1s0& $! th0 #0r0 'act o' ;a-i&a&As &0ath a't0r $0in+ hit $! th0 train $0in+ #ana+0& $!
th0 /R4A an& op0rat0& $! Ro#an( 4h0 CA also $la#0& /R4A 'or not ha-in+ pr0s0nt0& 08p0rt 0-i&0nc0 shoin+ that th0 0#0r+0nc!
$ra20s co1l& not ha-0 stopp0& th0 train on ti#0(
%SS3@S:
(1) 5h0th0r or not /R4A an&Bor Ro#an is lia$l0 'or th0 &0ath(
(2) 5h0th0r or not @scartin an&Bor .r1&0nt ar0 lia$l0(
)@/<:
(1) C0s( 4h0 'o1n&ation o' /R4AAs lia$ilit! is th0 contract o' carria+0 an& its o$li+ation to in&0#ni'! th0 -icti# arisin+ 'ro# th0 $r0ach
o' that contract $! r0ason o' its 'ail1r0 to 080rcis0 th0 hi+h &ili+0nc0 r0D1ir0& o' a co##on carri0r(
(2) Fa1lt as not 0sta$lish0&( /ia$ilit! ill $0 $as0& on 4ort 1n&0r Art( 21=6 o' th0 ;0 Ci-il Co&0(
RA4%O:
/ia$ilit! o' /R4A E R0a& Arts( 1=55,1=56, 1=59 an& 1=6> o' th0 ;0 Ci-il Co&0
A co##on carri0r is r0D1ir0& $! th0s0 a$o-0 stat1tor! pro-isions to 1s0 1t#ost &ili+0nc0 in carr!in+ pass0n+0rs ith &10 r0+ar& 'or
all circ1#stanc0s( 4his o$li+ation 08ists not onl! &1rin+ th0 co1rs0 o' th0 trip $1t 'or so lon+ as th0 pass0n+0rs ar0 ithin its pr0#is0s
h0r0 th0! o1+ht to $0 in p1rs1anc0 to th0n contract o' carria+0(
Art( 1=6> r0n&0rs a co##on carri0r lia$l0 'or &0ath o' or in71r! to pass0n+0rs (a) thro1+h th0 negligence or wilful acts of its
employees or (b) on account of willful acts or negligence of other passengers or of strangers if the common carriers employees
through theexercise of due diligence could have prevented or stopped the act or omission( %n cas0 o' s1ch &0ath or in71r!, a carri0r is
pr0s1#0& to ha-0 $00n at 'a1lt or $00n n0+li+0nt, an& $! si#pl0 proo' o' in71r!, th0 pass0n+0r is r0li0-0& o' th0 &1t! to still 0sta$lish
th0 'a1lt or n0+li+0nc0 o' th0 carri0r or o' its 0#plo!00s an& th0 $1r&0n shi'ts 1pon th0 carri0r to pro-0 that th0 in71r! is &10 to an
1n'or0s00n 0-0nt or to 'orc0 #a701r0(
/ia$ilit! o' S0c1rit! A+0nc! E %' .r1&0nt is to $0 h0l& lia$l0, it o1l& $0 'or a tort 1n&0r Art( 21=6 in con71nction ith Art( 2180( Onc0
th0 'a1lt o' th0 0#plo!00 @scartin is 0sta$lish0&, th0 0#plo!0r, .r1&0nt, o1l& $0 h0l& lia$l0 on th0 pr0s1#ption that it &i& not
080rcis0 th0 &ili+0nc0 o' a +oo& 'ath0r o' th0 'a#il! in th0 s0l0ction an& s1p0r-ision o' its 0#plo!00s(
R0lationship $0t00n contract1al an& non*contract1al $r0ach E )o th0n #1st th0 lia$ilit! o' th0 co##on carri0r, on th0 on0 han&,
an& an in&0p0n&0nt contractor, on th0 oth0r han&, $0 &0scri$0&6 %t o1l& $0 soli&ar!( A contract1al o$li+ation can $0 $r0ach0& $!
tort an& h0n th0 sa#0 act or o#ission ca1s0s th0 in71r!, on0 r0s1ltin+ in culpa contractualan& th0 oth0r in culpa aquiliana, Articl0
2194 o' th0 Ci-il Co&0 can 0ll appl!( %n 'in0, a lia$ilit! 'or tort #a! aris0 0-0n 1n&0r a contract, h0r0 tort is that hich $r0ach0s th0
contract( Stat0& &i''0r0ntl!, h0n an act hich constit1t0s a $r0ach o' ontract o1l& ha-0 its0l' constit1t0& th0 so1rc0 o' a D1asi*
&0lict1al lia$ilit! ha& no contract 08ist0& $0t00n th0 parti0s, th0 contract can $0 sai& to ha-0 $00n $r0ach0& $! tort, th0r0$!
alloin+ th0 r1l0s on tort to appl!(
'irst (hilippine &n)ustrial Corp. v. Court of Appeals
G.R. No. #259*8
'a!ts+ )0r0in p0tition0r appli0& 'or a #a!or9s p0r#it to op0rat0 its pip0lin0 conc0ssion( "0'or0 s1ch p0r#it as iss10&, th0 Cit!
tr0as1r0r r0D1ir0& p0tition0r to pa! local ta8( %n or&0r not to ha#p0r its op0rations, p0tition0r pai& th0 ta8 1n&0r prot0st(
4h0n th0 p0tition0r 'il0& a l0tt0r prot0st a&&r0ss0& to th0 tr0as1r0r clai#in+ 080#ption 'ro# pa!#0nt o' th0 ta8 $0ca1s0
accor&in+ to th0 /ocal ?o-0rn#0nt Co&0 o' 1991, transportation contractors ar0 not incl1&0& in th0 0n1#0ration o' contractors hich
ar0 lia$l0 to pa! ta80s( 4h0 cit! tr0as1r0r &0ni0& th0 prot0st( 4h0 p0tition0r 'il0& a cas0 $0'or0 th0 trial co1rt 'or ta8 r0'1n&, ho0-0r it
as s1$s0D10ntl! &is#iss0&( )0nc0, this p0tition(
&ssue+ 5h0th0r or not th0 p0tition0r is a co##on carri0r as cont0#plat0& to $0 080#pt0& 1n&0r th0 la(
,el)+
4h0 co1rt r1l0s th0 a''ir#ati-0( 4h0 co1rt 0n1nciat0& th0 (4) t0sts in &0t0r#inin+ h0th0r th0 carri0r is that o' a co##on
carri0r:
a( #1st $0 0n+a+0& int 0h $1sin0ss o' carr!in+ +oo&s 'or oth0r as a p1$lic 0#plo!#0nt an& #1st hol& its0l' o1t as r0a&!
to 0n+a+0 in th0 transportation o' +oo&s +0n0rall! as a $1sin0ss an& not a cas1al occ1pation
$( it #1st 1n&0rta20 to carr! +oo&s o' th0 2in& hich its $1sin0ss is con'in0&F
c( it #1st 1n&0rta20 th0 #0tho& $! hich his $1sin0ss is con&1ct0& an& o-0r its 0sta$lish0& roa&sF
&( th0 transportation #1st $0 'or hir0(
%n th0 cas0 at $ar, th0 co1rt cat0+oricall! r1l0& that th0 transportin+ o' oil thro1+h pip0lin0s is still consi&0r0& to $0 an acti-it! o' a
co##on carri0r( 4h0 p0tition0r is a co##on carri0r $0ca1s0 it is 0n+a+0& in th0 $1sin0ss o' transportin+ pass0n+0rs or +oo&sF li20
p0trol01#( %t 1n&0rta20s to carr! 'or all p0rsons in&i''0r0ntl!( 4h0 'act that th0 p0tition0r has li#it0& cli0nt0l0 &o0s not 08cl1&0 it 'ro#
th0 &0'inition o' co##on carri0r( 3n&0r th0 p0trol01# act o' th0 .hilippin0s, th0 p0tition0r is consi&0r0& a co##on carri0r 0-0n i' it is
a pip0lin0 conc0ssionair0(
An& 0-0n as r0+ar&s th0 p0trol01# op0ration, it is o' p1$lic 1tilit!( Sp0ci'icall!, th0 "1r0a1 o' %nt0rnal R0-0n10 consi&0rs p0tition0rs
as co##on carri0r not s1$70ct to ithhol&in+ ta8(
National -teel Corporation v. Court of Appeals
G.R. Nos. ##228./##2051
'a!ts+ )0r0in p0tition0r o' ?(R( ;o( 112>50, Glasons Shippin+ 0nt0r0& into a contract o' a'r0i+ht#0nt on contract o' -o+a+04 chart0r
lin0 ith th0 p0tition0r o' th0 oth0r consoli&at0& cas0, ;ational St00l Corporation (;SC), h0r0$! th0 latt0r hir0& Glason9s -0ss0l, th0
MBG Glasons % to #a20 a -o!a+0 to loa& st00l pro&1cts 'ro# %la+an Cit! to Manila( 3n&0r th0 a+r00#0nt, th0 loa&in+ an& 1nloa&in+ o'
th0 car+o0s ar0 th0 r0sponsi$ilit! o' th0 chart0r an& th0 on0r shall no $0 lia$l0 o' th0 loss or &a#a+0 o' th0 car+o arisin+ 'ro# th0
1ns0aorthin0ss 1nl0ss co1ns0l $! ant o' &ili+0nc0 on th0 part o' th0 on0rs to #a20 th0 -0ss0l s0aorth! an& to s0c1r0 that it is
prop0rl! #ann0&, 0D1ipp0& an& s1ppli0&(
3pon arri-al on A1+1st 12, 19=4, it as 'o1n& that n0arl! all th0 tin plat0s an& hot roll0& sh00ts 0r0 0t an& r1st!( 4h0
car+o as 1nloa&0& $! th0 chart0r0r )0nc0 th0 p0tition0r 'il0& 'or a clai# o' &a#a+0s a#o1ntin+ to .941,145(58, all0+in+ th0
n0+li+0nc0 o' th0 #ast0r an& cr0 o' th0 ship(
&ssue+ 5h0th0r or not Glasons Shippin+ is #a&0 lia$l0 notithstan&in+ th0 Chart0r .art! stip1lations(
,el)+ 4h0 co1rts r1l0 th0 n0+ati-0( At $otto#, this app0al r0all! hin+0s on a 'act1al iss10 as to th0n, ho, an& ho ca1s0& th0
&a#a+0s to th0 car+o( Ran+0& a+ainst ;SC ar0 to 'or#i&a$l0 tr1hs( First, it as 'o1n& that s1ch &a#a+0 as $ro1+ht a$o1t &1rin+
th0 1nloa&in+ proc0ss h0n th0 rain s00p0& into th0 car+o &10 to th0 n0+li+0nc0 o' th0 st0-0&or0s 0#plo!0& $! it(
S0con& an& #or0 i#portantl!, th0 a+r00#0nt $0t00n th0 parti0s H4h0 Contact o' Go!a+0 Chart0r .art! 'or )ir0I plac0& th0
$1r&0n o' proo' o' s1ch loss or &a#a+0 1pon th0 shipp0r, not 1pon th0 ship on0r( S1ch stip1lation, hil0 &isa&-anta+0o1s to th0
;SC, is -ali& $0ca1s0 th0 parti0s 0nt0r0& into a contract o' pri-at0 chart0r, not on0 o' co##on carria+0(
"asic too is th0 &octrin0 that co1rts cannot r0li0-0 a part! 'ro# th0 0''0cts o' a pri-at0 contract '1ll! 0nt0r0& into, on th0
+ro1n& that it is all0+0&l! on0*si&0& or 1n'air to th0 plainti''( %t has $00n h0l& that th0 tr10 t0st o' a co##on carri0r o'
pass0n+0rsB+oo&s is th0 carria+0 o' th0 sa#0, pro-i&0& it has spac0, 'or all ho opt to a-ail 'or its transportation s0r-ic0 'or a '00(
BA-C- vs.C2RT ' A((3A$- an) RD$' A. C&(R&AN
?(R( ;o( 101089
April =, 199>
FAC4S: Ro&ol'o A( Cipriano r0pr0s0ntin+ Cipriano 4ra&in+ @nt0rpris0 (C%.4RA<@ 'or short) 0nt0r0& into a ha1lin+ contract ith
Ji$'air Shippin+ A+0nc! Corp h0r0$! th0 'or#0r $o1n& its0l' to ha1l th0 latt0r9s 2,000 #Btons o' so!a $0an #0al to th0 ar0ho1s0 in
Cala#$a, /a+1na( 4o carr! o1t its o$li+ation, C%.4RA<@, thro1+h Cipriano, s1$contract0& ith "ascos to transport an& to &0li-0r
400 sac2s o' so!a $0an #0al 'ro# th0 Manila .ort Ar0a to Cala#$a, /a+1na( .0tition0r 'ail0& to &0li-0r th0 sai& car+o( As a
cons0D10nc0 o' that 'ail1r0, Cipriano pai& Ji$'air Shippin+ A+0nc! th0 a#o1nt o' th0 lost +oo&s in accor&anc0 ith th0ir contract(
Cipriano &0#an&0& r0i#$1rs0#0nt 'ro# p0tition0r $1t th0 latt0r r0'1s0& to pa!( @-0nt1all!, Cipriano 'il0& a co#plaint 'or a s1# o'
#on0! an& &a#a+0s ith rit o' pr0li#inar! attach#0nt 'or $r0ach o' a contract o' carria+0( 4h0 trial co1rt +rant0& th0 rit o'
pr0li#inar! attach#0nt(
%n h0r ans0r, p0tition0r int0rpos0& th0 &0'0ns0 that th0r0 as no contract o' carria+0 sinc0 C%.4RA<@ l0as0& h0r car+o tr1c2 to
loa& th0 car+o 'ro# Manila .ort Ar0a to /a+1na an& that th0 tr1c2 carr!in+ th0 car+o as hi7ac20& an& $0in+ a 'orc0 #a701r0,
08c1lpat0& p0tition0r 'ro# an! lia$ilit!
A't0r trial, th0 trial co1rt r0n&0r0& a &0cision in 'a-or o' Cipriano an& a+ainst "ascos or&0rin+ th0 latt0r to pa! th0 'or#0r 'or act1al
&a#a+0s 'or attorn0!9s '00s an& cost o' s1it(
4h0 H3r+0nt Motion 4o <issol-0B/i't pr0li#inar! Attach#0ntI "ascos is <@;%@< 'or $0in+ #oot an& aca&0#ic(
.0tition0r app0al0& to th0 Co1rt o' App0als $1t r0spon&0nt Co1rt a''ir#0& th0 trial co1rt9s 71&+#0nt(
)0nc0 this p0tition 'or r0-i0 on c0rtiorari
%SS3@:
(1) 5O; p0tition0r a co##on carri0r
(2) 5O; th0 hi7ac2in+ r0'0rr0& to a 'orc0 #a701r0
)@/<: 4h0 p0tition is <%SM%SS@< an& th0 &0cision o' th0 Co1rt o' App0als is h0r0$! AFF%RM@<(
1( C@S
%n &isp1tin+ th0 concl1sion o' th0 trial an& app0llat0 co1rts that p0tition0r as a co##on carri0r, sh0 all0+0& in this p0tition that th0
contract $0t00n h0r an& Cipriano as l0as0 o' th0 tr1c2( Sh0 also stat0& that: sh0 as not cat0rin+ to th0 +0n0ral p1$lic( 4h1s, in
h0r ans0r to th0 a#0n&0& co#plaint, sh0 sai& that sh0 &o0s $1sin0ss 1n&0r th0 sa#0 st!l0 o' A(M( "ascos 4r1c2in+, o''0rin+ h0r
tr1c2s 'or l0as0 to thos0 ho ha-0 car+o to #o-0, not to th0 +0n0ral p1$lic $1t to a '0 c1sto#0rs onl! in -i0 o' th0 'act that it is
onl! a s#all $1sin0ss(
50 a+r00 ith th0 r0spon&0nt Co1rt in its 'in&in+ that p0tition0r is a co##on carri0r(
Articl0 1=>2 o' th0 Ci-il Co&0 &0'in0s a co##on carri0r as H(a) p0rson, corporation or 'ir#, or association 0n+a+0& in th0 $1sin0ss o'
carr!in+ or transportin+ pass0n+0rs or +oo&s or $oth, $! lan&, at0r or air, 'or co#p0nsation, o''0rin+ th0ir s0r-ic0s to th0 p1$lic(I
4h0 t0st to &0t0r#in0 a co##on carri0r is Hh0th0r th0 +i-0n 1n&0rta2in+ is a part o' th0 $1sin0ss 0n+a+0& in $! th0 carri0r hich h0
has h0l& o1t to th0 +0n0ral p1$lic as his occ1pation rath0r than th0 D1antit! or 08t0nt o' th0 $1sin0ss transact0&(I 12 %n this cas0,
p0tition0r h0rs0l' has #a&0 th0 a&#ission that sh0 as in th0 tr1c2in+ $1sin0ss, o''0rin+ h0r tr1c2s to thos0 ith car+o to #o-0(
J1&icial a&#issions ar0 concl1si-0 an& no 0-i&0nc0 is r0D1ir0& to pro-0 th0 sa#0( 1>
"1t p0tition0r ar+10s that th0r0 as onl! a contract o' l0as0 $0ca1s0 th0! o''0r th0ir s0r-ic0s onl! to a s0l0ct +ro1p o' p0opl0(
R0+ar&in+ th0 'irst cont0ntion, th0 hol&in+ o' th0 Co1rt in <0 ?1:#an -s( Co1rt o' App0als 14 is instr1cti-0( %n r0'0rrin+ to Articl0
1=>2 o' th0 Ci-il Co&0, it h0l& th1s:
H4h0 a$o-0 articl0 #a20s no &istinction $0t00n on0 hos0 principal $1sin0ss acti-it! is th0 carr!in+ o' p0rsons or +oo&s or $oth,
an& on0 ho &o0s s1ch carr!in+ onl! as an ancillar! acti-it! (in local i&io#, as a Hsi&0lin0I)( Articl0 1=>2 also car0'1ll! a-oi&s #a2in+
an! &istinction $0t00n a p0rson or 0nt0rpris0 o''0rin+ transportation s0r-ic0 on a r0+1lar or sch0&1l0& $asis an& on0 o''0rin+ s1ch
s0r-ic0 on an occasional, 0piso&ic or 1nsch0&1l0& $asis( ;0ith0r &o0s Articl0 1=>2 &istin+1ish $0t00n a carri0r o''0rin+ its s0r-ic0s
to th0 H+0n0ral p1$lic,I i(0(, th0 +0n0ral co##1nit! or pop1lation, an& on0 ho o''0rs s0r-ic0s or solicits $1sin0ss onl! 'ro# a narro
s0+#0nt o' th0 +0n0ral pop1lation( 50 thin2 that Articl0 1=>2 &0li$0rat0l! r0'rain0& 'ro# #a2in+ s1ch &istinctions(I
2( ;O
/i20is0, 50 a''ir# th0 hol&in+ o' th0 r0spon&0nt co1rt that th0 loss o' th0 +oo&s as not &10 to 'orc0 #a701r0(
Co##on carri0rs ar0 o$li+0& to o$s0r-0 08traor&inar! &ili+0nc0 in th0 -i+ilanc0 o-0r th0 +oo&s transport0& $! th0#( Accor&in+l!,
th0! ar0 pr0s1#0& to ha-0 $00n at 'a1lt or to ha-0 act0& n0+li+0ntl! i' th0 +oo&s ar0 lost, &0stro!0& or &0t0riorat0&( 4h0r0 ar0 -0r!
'0 instanc0s h0n th0 pr0s1#ption o' n0+li+0nc0 &o0s not attach an& th0s0 instanc0s ar0 0n1#0rat0& in Articl0 1=>4( 19 %n thos0
cas0s h0r0 th0 pr0s1#ption is appli0&, th0 co##on carri0r #1st pro-0 that it 080rcis0& 08traor&inar! &ili+0nc0 in or&0r to
o-0rco#0 th0 pr0s1#ption(
%n this cas0, p0tition0r all0+0& that hi7ac2in+ constit1t0& 'orc0 #a701r0 hich 08c1lpat0& h0r 'ro# lia$ilit! 'or th0 loss o' th0 car+o( %n
<0 ?1:#an -s( Co1rt o' App0als, th0 Co1rt h0l& that hi7ac2in+, not $0in+ incl1&0& in th0 pro-isions o' Articl0 1=>4, #1st $0 &0alt
ith 1n&0r th0 pro-isions o' Articl0 1=>5 an& th1s, th0 co##on carri0r is pr0s1#0& to ha-0 $00n at 'a1lt or n0+li+0nt( 4o 08c1lpat0
th0 carri0r 'ro# lia$ilit! arisin+ 'ro# hi7ac2in+, h0 #1st pro-0 that th0 ro$$0rs or th0 hi7ac20rs act0& ith +ra-0 or irr0sisti$l0 thr0at,
-iol0nc0, or 'orc0( 4his is in accor&anc0 ith Articl0 1=45 o' th0 Ci-il Co&0 hich pro-i&0s:
HArt( 1=45( An! o' th0 'olloin+ or si#ilar stip1lations shall $0 consi&0r0& 1nr0asona$l0, 1n71st an& contrar! to p1$lic polic!F 88
(6) 4hat th0 co##on carri0r9s lia$ilit! 'or acts co##itt0& $! thi0-0s, or o' ro$$0rs ho &o not act ith +ra-0 or irr0sisti$l0 thr0at,
-iol0nc0s or 'orc0, is &isp0ns0& ith or &i#inish0&FI 88
;O4@S:
1( Sh0 cit0& as 0-i&0nc0 c0rtain a''i&a-its hich r0'0rr0& to th0 contract as Hl0as0I( 4h0s0 a''i&a-its 0r0 #a&0 $! J0s1s "ascos
an& $! p0tition0r h0rs0l' an& Cipriano an& C%.4RA<@ &i& not o$70ct to th0 pr0s0ntation o' a''i&a-its $! p0tition0r h0r0 th0
transaction as r0'0rr0& to as a l0as0 contract( "oth th0 trial an& app0llat0 co1rts ha-0 &is#iss0& th0# as s0l'*s0r-in+ an& p0tition0r
cont0sts th0 concl1sion( 50 ar0 $o1n& $! th0 app0llat0 co1rt9s 'act1al concl1sions( C0t, +rantin+ that th0 sai& 0-i&0nc0 0r0 not
s0l'*s0r-in+, th0 sa#0 0r0 not s1''ici0nt to pro-0 that th0 contract as on0 o' l0as0( %t #1st $0 1n&0rstoo& that a contract is hat
th0 la &0'in0s it to $0 an& not hat it is call0& $! th0 contractin+ parti0s( F1rth0r#or0, p0tition0r pr0s0nt0& no oth0r proo' o' th0
08ist0nc0 o' th0 contract o' l0as0( )0 ho all0+0s a 'act has th0 $1r&0n o' pro-in+ it(
2( )a-in+ a''ir#0& th0 'in&in+s o' th0 r0spon&0nt Co1rt on th0 s1$stantial iss10s in-ol-0&, 50 'in& no r0ason to &ist1r$ th0
concl1sion that th0 #otion to li'tB&issol-0 th0 rit o' pr0li#inar! attach#0nt has $00n r0n&0r0& #oot an& aca&0#ic $! th0 &0cision on
th0 #0rits(
-(2-3- DANT3 CR24 an) $3NRA CR245 .0tition0rs,
-s(
-2N ,$&DA6-5 &NC.5 R0spon&0nt(
'a!ts: Spo1s0s <ant0 an& /0onora Cr1: (p0tition0rs) lo&+0& a Co#plaint on Jan1ar! 25, 2001 a+ainst S1n )oli&a!s, %nc(
(r0spon&0nt) ith th0 R0+ional 4rial Co1rt (R4C) o' .asi+ Cit! 'or &a#a+0s arisin+ 'ro# th0 &0ath o' th0ir son R10lito C( Cr1:
(R10lito) ho p0rish0& ith his i'0 on S0pt0#$0r 11, 2000 on $oar& th0 $oat MB" Coco "0ach %%% that capsi:0& 0n ro1t0 to
"atan+as 'ro# .10rto ?al0ra, Ori0ntal Min&oro h0r0 th0 co1pl0 ha& sta!0& at Coco "0ach %slan& R0sort (R0sort) on0& an&
op0rat0& $! r0spon&0nt(
On S0pt0#$0r 11, 2000, as it as still in&!, Mat1t0 an& 25 oth0r R0sort +10sts incl1&in+ p0tition0rs9 son an& his i'0 tr0220& to th0
oth0r si&0 o' th0 Coco "0ach #o1ntain that as sh0lt0r0& 'ro# th0 in& h0r0 th0! $oar&0& MB" Coco "0ach %%%, hich as to '0rr!
th0# to "atan+as(
Shortl! a't0r th0 $oat sail0&, it start0& to rain( As it #o-0& 'arth0r aa! 'ro# .10rto ?al0ra an& into th0 op0n s0as, th0 rain an& in&
+ot stron+0r, ca1sin+ th0 $oat to tilt 'ro# si&0 to si&0 an& th0 captain to st0p 'orar& to th0 'ront, l0a-in+ th0 h00l to on0 o' th0 cr0
#0#$0rs(
4h0 a-0s +ot #or0 1ni0l&!( A't0r +0ttin+ hit $! to $i+ a-0s hich ca#0 on0 a't0r th0 oth0r, MB" Coco "0ach %%% capsi:0&
p1ttin+ all pass0n+0rs 1n&0rat0r( 4h0 pass0n+0rs, ho ha& p1t on th0ir li'0 7ac20ts, str1++l0& to +0t o1t o' th0 $oat( 3pon s00in+
th0 captain, Mat1t0 an& th0 oth0r pass0n+0rs ho r0ach0& th0 s1r'ac0 as20& hi# hat th0! co1l& &o to sa-0 th0 p0opl0 ho 0r0
still trapp0& 1n&0r th0 $oat( 4h0 captain r0pli0& K%li+tas ni!o na lan+ an+ sarili ni!oK (J1st sa-0 !o1rs0l-0s)(
)0lp ca#0 a't0r a$o1t 45 #in1t0s h0n to $oats on0& $! Asia <i-0rs in Sa$an+, .10rto ?al0ra pass0& $! th0 capsi:0& MB"
Coco "0ach %%%( "oar&0& on thos0 to $oats 0r0 22 p0rsons, consistin+ o' 18 pass0n+0rs an& 'o1r cr0 #0#$0rs, ho 0r0
$ro1+ht to .isa %slan&( @i+ht pass0n+0rs, incl1&in+ p0tition0rs9 son an& his i'0, &i0& &1rin+ th0 inci&0nt(
&ssue: 5h0th0r or not r0spon&0nt is a co##on carri0r(
,el): 4h0 Ci-il Co&0 &0'in0s Kco##on carri0rsK in th0 'olloin+ t0r#s:
Articl0 1=>2( Co##on carri0rs ar0 p0rsons, corporations, 'ir#s or associations 0n+a+0& in th0 $1sin0ss o' carr!in+ or transportin+
pass0n+0rs or +oo&s or $oth, $! lan&, at0r, or air 'or co#p0nsation, o''0rin+ th0ir s0r-ic0s to th0 p1$lic(
4h0 a$o-0 articl0 #a20s no &istinction $0t00n on0 hos0 principal $1sin0ss acti-it! is th0 carr!in+ o' p0rsons or +oo&s or $oth, an&
on0 ho &o0s s1ch carr!in+ onl! as an ancillar! acti-it! (in local i&io#, as Ka si&0lin0K)( Articl0 1=>2 also car0'1ll! a-oi&s #a2in+ an!
&istinction $0t00n a p0rson or 0nt0rpris0 o''0rin+ transportation s0r-ic0 on a r0+1lar or sch0&1l0& $asis an& on0 o''0rin+ s1ch
s0r-ic0 on an occasional, 0piso&ic or 1nsch0&1l0& $asis( ;0ith0r &o0s Articl0 1=>2 &istin+1ish $0t00n a carri0r o''0rin+ its s0r-ic0s
to th0 K+0n0ral p1$lic,K i(0(, th0 +0n0ral co##1nit! or pop1lation, an& on0 ho o''0rs s0r-ic0s or solicits $1sin0ss onl! 'ro# a narro
s0+#0nt o' th0 +0n0ral pop1lation( 50 thin2 that Articl0 1=>> &0li$0rat0l! r0'rain0& 'ro# #a2in+ s1ch &istinctions(
%n&00&, r0spon&0nt is a co##on carri0r( %ts '0rr! s0r-ic0s ar0 so int0rtin0& ith its #ain $1sin0ss as to $0 prop0rl! consi&0r0&
ancillar! th0r0to( 4h0 constanc! o' r0spon&0nt9s '0rr! s0r-ic0s in its r0sort op0rations is 1n&0rscor0& $! its ha-in+ its on Coco
"0ach $oats( An& th0 to1r pac2a+0s it o''0rs, hich incl1&0 th0 '0rr! s0r-ic0s, #a! $0 a-ail0& o' $! an!on0 ho can a''or& to pa! th0
sa#0( 4h0s0 s0r-ic0s ar0 th1s a-aila$l0 to th0 p1$lic(
4hat r0spon&0nt &o0s not char+0 a s0parat0 '00 or 'ar0 'or its '0rr! s0r-ic0s is o' no #o#0nt( %t o1l& $0 i#pr1&0nt to s1ppos0 that it
pro-i&0s sai& s0r-ic0s at a loss( 4h0 Co1rt is aar0 o' th0 practic0 o' $0ach r0sort op0rators o''0rin+ to1r pac2a+0s to 'actor th0
transportation '00 in arri-in+ at th0 to1r pac2a+0 pric0( 4hat +10sts ho opt not to a-ail o' r0spon&0nt9s '0rr! s0r-ic0s pa! th0 sa#0
a#o1nt is li20is0 incons0D10ntial( 4h0s0 +10sts #a! onl! $0 &00#0& to ha-0 o-0rpai&(
(e)ro )e Gu78an v. Court of Appeals
G.R. No. $9*.822
'a!ts+ )0r0in r0spon&0nt @rn0sto C0n&ana as 0n+a+0& in $1!in+ 1p 1s0& $ottl0s an& scrap #0tal in .an+asinan( ;or#all!, a't0r
coll0ction r0spon&0nt o1l& $rin+ s1ch #at0rial to Manila 'or r0sal0( )0 1tili:0& (2) to si8*h00l0rs tr1c2s hich h0 on0& 'or th0
p1rpos0( 3pon r0t1rnin+ to .an+asinan, h0 o1l& loa& his -0hicl0 ith car+o $0lon+in+ to &i''0r0nt #0rchants to &i''0r0nt
0sta$lish#0nts in .an+asisnan hich r0spon&0nts char+0& a 'r0i+ht '00 'or( So#0ti#0 in ;o-0#$0r 19=0, h0r0in p0tition0r .0&ro &0
?1:#an, a #0rchant an& &0al0r o' ?0n0ral Mil2 Co#pan! %nc( in .an+asinan contract0& ith r0spon&0nt 'or ha1lin+ =50 cartons o'
#il2( 3n'ort1nat0l!, onl! 150 cartons #a&0 it, as th0 oth0r 600 cartons 0r0 int0rc0pt0& $! hi7ac20rs alon+ Marcos )i+ha!( )0nc0,
p0tition0rs co##0nc0& an action a+ainst pri-at0 r0spon&0nt(
%n his &0'0ns0, r0spon&0nt ar+10& that h0 cannot $0 h0l& lia$l0 &10 to 'orc0 #a710r0, an& that h0 is not a co##on carri0r
an& h0nc0 is not r0D1ir0& to 080rcis0 08traor&inar! &ili+0nc0(
&ssues+
1( 5h0th0r or not r0spon&0nt can $0 h0l& lia$l0 'or loss o' th0 cartons o' #il2 &10 to 'orc0 #a701r0(
2( 5h0th0r or not r0spon&0nt is a co##on carri0r(
,el)+
1( 4h0 co1rt r1l0& th0 a''ir#ati-0( 4h0 circ1#stanc0s &o not 'all 1n&0r th0 080#ption 'ro# lia$ilit! as 0n1#0rat0& in Articl0
1=>4 o' th0 Ci-il Co&0( 4h0 +0n0ral r1l0 is 0sta$lish0& $! th0 articl0 that co##on carri0rs ar0 r0sponsi$l0 'or th0 loss,
&0str1ction or &0t0rioration o' th0 +oo&s hich th0! carr!, 1nl0ss th0 sa#0 is &10 to an! o' th0 'olloin+ ca1s0s onl!:
a( Floo&, stor#, 0arthD1a20, li+htnin+ or oth0r nat1ral &isast0rsF
$( Act o' th0 p1$lic 0n0#!, h0th0r int0rnational or ci-ilF
c( Act or o#ission o' th0 shipp0r or on0r o' th0 +oo&sF
&( Charact0r o' th0 +oo&s or &0'0cts in th0 pac2in+F
0( Or&0r or act o' co#p0t0nt p1$lic a1thorit!(
2( 4h0 co1rt r1l0& th0 a''ir#ati-0( Articl0 1=>2 o' th0 ;0 Ci-il Co&0 a-oi&s an! &istinction $0t00n on0 hos0 principal
$1sin0ss acti-it! is th0 carr!in+ o' p0rsons or +oo&s or $oth an& on0 ho &o0s s1ch carr!in+ onl! as an ancillar! acti-it!( %t
also a-oi&s a &istinction $0t00n a p0rson or 0nt0rpris0 o''0rin+ transportation s0r-ic0s on a r0+1lar or sch0&1l0& $asis an&
on0 o''0rin+ s1ch s0r-ic0s on an occasional, 0piso&ic, an& 1nsch0&1l0& $asis(
(lanters (ro)u!ts5 &n!. v. Court of Appeals
G.R. No. #1#510
'a!ts+ .lant0rs .ro&1cts (.lant0rs) p1rchas0& 'ro# Mits1$ishi %nt0rnational Corporation o' 3SA o' 9,000 #0tric tons o' 1r0a '0rtili:0r
hich th0 latt0r shipp0& a$roa& th0 car+o -0ss0l on0& $! pri-at0 r0spon&0nt ,!os0i ,isin ,a$1shi2i ,aisha (,,,,) 'ro# A#0rica
to /a 3nion( .rior to its -o!a+0, a ti#0 chart0r part! as 0nt0r0& into $0t00n Mit1s$ishi as shipp0rBchart0r0r an& ,,,, as ship*
on0r( A't0r th0 3r0a '0rtili:0r as loa&0& in $1l2 $! st0-0&or0& hir0& $! th0 shipp0r, th0 st00l hatch0s 0r0 clos0& ith h0a-! iron
li&s hich r0#ain0& clos0& &1rin+ th0 0ntir0 7o1rn0!(
3pon arri-al o' th0 -0ss0l, th0 hatch0s 0r0 op0n0& ith th0 1s0 o' th0 -0ss0l $oo#( .lant0rs 1nloa&0& th0 car+o 'ro# th0
hol&0rs into th0 st00l $o&i0& &1#p tr1c2s( @ach ti#0 th0 &1#p tr1c2s 0r0 'ill0& 1p, its loa& o' 1r0a as co-0r0& ith tarpa1lin
$0'or0 it as transport0& to th0 consi+n009s ar0ho1s0 locat0& so#0 (50) 'i't! #0t0r0s 'ro# th0 har'( %t too2 (11) 0l0-0n &a!s 'ro#
plant0rs to 1nloa& th0 car+o( 4h0 r0port s1$#itt0& $! pri-at0 #arin0 an& car+o s1r-0!ors r0-0al0& a shorta+0 in th0 car+o, an&
so#0 portion in th0 car+o as conta#inat0& ith &irt, r0n&0rin+ th0 sa#0 1n'it 'or co##0rc0( .lant0rs 'il0& an action 'or &a#a+0s
$1 th0 app0llat0 co1rt a$sol-0& th0 carri0r 'ro# lia$ilit!(
&ssues+
1( 5h0th0r or not th0 r0spon&0nt is a co##on carri0r(
2( 5h0th0r or not th0 r0spon&0nt is lia$l0 'or &a#a+0s(
,el)+
1( 4h0 co1rt r1l0s th0 a''ir#ati-0 as to th0 r0spon&0nt $0in+ a co##on carri0r( 4h0 t0r# co##on carri0r is &0'in0& in Articl0
1=>2 o' th0 Ci-il Co&0( 4h0 &0'inition r0'0rs to carri0rs 0ith0r $! lan&, at0r, or air hich hol&s th0#s0l-0s o1t as r0a&! to
0n+a+0 in carr!in+ +oo&s on transportin+ pass0n+0rs or $oth 'or co#p0nsation as a p1$lic 0#plo!#0nt an& not as a cas1al
occ1pationF i' th0 1n&0rta2in+ is a sin+l0 transaction, not a part o' th0 +0n0ral $1sin0ss or corporation, altho1+h in-ol-in+
th0 carria+0 o' +oo&s 'or a '00, th0n th0 p0rson or corporation o''0rin+ s1ch s0r-ic0s is a pri-at0 carri0r( %n th0 cas0 at $ar
r0spon&0nt carri0r transports +oo&s in&iscri#inat0l! 'or all p0rsons( "0in+ s1ch, h0 is a co##on carri0r(
2( 4h0 co1rt r1l0s th0 n0+ati-0( 4r10, $0in+ a co##on carri0r, r0spon&0nt #1st ha-0 o$s0r-0& 08traor&inar! &ili+0nc0 o-0r
th0 +oo&s it carri0s( %n th0 cas0 at $ar it has $00n pro-0n that th0 r0spon&0nt has s1''ici0ntl! o-0rco#0 this, $! cl0ar an&
con-incin+ proo', th0 pri#a 'aci0 pr0s1#ption o' n0+li+0nc0, &10 to th0 #ann0r o' stora+0 o' th0 +oals &1rin+ th0 -o+!a+0(
%n 'act, it as point0& o1t that th0r0 as a ris2 in shippin+ th0 1r0a &10 to its charact0r(
,o8e &nsuran!e Co. v A8eri!an -tea8ship Agen!ies
20 -CRA 2* April *5 #9:8
'a!ts+
Consorcio .asD10ro <0l .0rs0 o' So1th A#0rica shipp0& a 'r0i+ht o' 21,=40 71t0 $a+s o' .0r1-ian 'ish #0al thro1+h th0 SS
Cro$oro1+h consi+n0& to th0 Sa# Mi+10l "r00r! an& ins1r0& $! )o#0 %ns1ranc0 Co#pan! 'or L202,505(00( %t arri-0& in Manila
on March =, 196> an& as loa&0& into th0 li+ht0rs o' /1:on St0-0&orin+ Co#pan!( )o0-0r, it arri-0& ith shorta+0s( 4h1s SM"
&0#an&0& that )o#0 %ns1ranc0 pa! th0 clai# o' .14,000(00( )o#0 %ns1ranc0 on th0 oth0r han& 'il0& 'or th0 r0co-0r! o' th0
.14,000(00 'ro# /1:on St0-0&orin+( 4h0 Co1rt o' First %nstanc0 a$sol-0& /1:on St0-0&orin+, $1t or&0r0& th0 A#0rican St0a#ship
A+0nci0s to r0i#$1rs0 th0 a#o1nt to )o#0 %ns1ranc0, $asin+ th0 r1lin+ on Art( 58= o' th0 Co&0 o' Co##0rc0 hich #a20s th0 ship
a+0nt ci-ill! lia$l0 'or &a#a+0s in 'a-or o' thir& p0rsons &10 to con&1ct o' carri0r9s captain an& that th0 stip1lation in th0 chart0r part!
080#ptin+ th0 on0r 'ro# lia$ilit! is a+ainst p1$lic polic! 1n&0r Articl0 1=44 o' th0 ;0 Ci-il Co&0(
&ssue+
"0t00n th0 pro-isions o' th0 ;0 Ci-il Co&0 an& th0 Co&0 o' Co##0rc0, hich sho1l& appl!(
,el)+
4h0 co1rt r1l0s th0 a''ir#ati-0 as to th0 non*applica$ilit! o' th0 prohi$ition o' th0 080#ption o' th0 carri0r 'ro# lia$ilit!( 4h0
pro-isions o' o1r Ci-il Co&0 on co##on carri0rs 0r0 ta20n 'ro# An+lo*A#0rican /a( 3n&0r A#0rican J1rispr1&0nc0, a co##on
carri0r 1n&0rta20s to carr! a sp0cial car+o or chart0r0& to a sp0cial p0rson onl!, $0co#0s a pri-at0 carri0r( An& th1s, as a pri-at0
carri0r, a stip1lation 080#ptin+ th0 on0r 'ro# lia$ilit! 'or th0 n0+li+0nc0 o' its a+0nt is not a+ainst p1$lic polic!( 4h0 r0ason is that
th0r0 is no strict p1$lic polic! appli0&(
Ce"u -alvage Corporation ;C-C< vs (hilippine ,o8e Assuran!e Corp.5 ;(,AC
G.R. No. #51*10
=anuary 255 211.
FAC4S:
On ;o-0#$0r 12, 1984, CSC M Maria Christina Ch0#icals %n&1stri0s, %nc(, (MCC%%) 0nt0r0& into a -o!a+0 chart0r h0r0in CSC as
to loa& 800*1,100 #0tric tons o' silica D1art: on $oar& th0 MB4 @spirit1 Santo at A!1n+on, ;0+ros Occi&0ntal 'or transport to an&
&ischar+0 at 4a+oloan, Misa#is Ori0ntal to consi+n0& F0rrochro#0 .hil9s(, %nc( .1rs1ant to th0 contract, on <0c0#$0r 2>, 1984,
CSC r0c0i-0& M loa&0& 1,100 #0tric tons o' silica D1art: on $oar& th0 MB4 @spirit1 Santo hich l0't A!1n+on 'or 4a+oloan th0 n08t
&a!(
)o0-0r, th0 ship#0nt n0-0r r0ach0& its &0stination $0ca1s0 th0 MB4 @spirit1 Santo san2 in th0 a't0rnoon o' <0c0#$0r 24, 1984 o''
th0 $0ach o' Opol, Misa#is Ori0ntal, r0s1ltin+ in th0 total loss o' th0 car+o(
MCC%% 'il0& a clai# 'or th0 loss o' th0 ship#0nt ith its ins1r0r, .)AC( .)AC pai& th0 clai# in th0 a#o1nt o' .211,500 an& as
s1rro+at0& to MCC%%9s ri+hts( %t th0r0a't0r 'il0& a cas0 in th0 R4C a+ainst CSC 'or r0i#$1rs0#0nt o' th0 a#o1nt it pai& MCC%%(
)o0-0r, CSC clai#s no lia$ilit! insistin+ that th0 a+r00#0nt as #0r0l! a contract o' hir0 h0r0in MCC%% hir0& th0 -0ss0l 'ro# its
on0r, A/S 4i#$0r @nt0rpris0s( ;ot $0in+ th0 on0r o' th0 MB4 @spirit1 Santo, p0tition0r &i& not ha-0 control o-0r th0 -0ss0l, it9s
#ast0r M cr0( 4h1s, it co1l& not all0+0&l! $0 h0l& lia$l0 'or th0 loss o' th0 ship#0nt ca1s0& $! th0 sin2in+ o' a ship it &i&n9t on(
%SS3@S:
1( 5h0th0r th0r0 is a contract o' carria+0 $0t00n CSC an& MCC%%(
2( 5h0th0r CSC is a co##on carri0r &0spit0 not $0in+ th0 on0r o' th0 -0ss0l it 1s0&(
>( 5h0th0r th0 $ill o' la&in+ sho1l& pr0-ail o-0r th0 -o!a+0 chart0r as th0 contract o' carria+0 $0t00n th0 parti0s(
4( 5h0th0r MCC%% sho1l& $0 h0l& lia$l0 'or its on loss
5( 5h0th0r a carri0r that 0nt0rs into a contract o' carria+0 is not lia$l0 to th0 chart0r0rBshipp0r i' it &o0s not on th0 -0ss0l it choos0s
to 1s0(
)@/<:
1( C0s( 4h0 car+o as loa&0& on $oar& th0 -0ss0lF lossBnon*&0li-0r! o' th0 car+o as pro-0nF an& p0tition0r 'ail0& to pro-0 that it
080rcis0& 08traor&inar! &ili+0nc0 to pr0-0nt s1ch loss or that it as &10 to so#0 cas1alt! or 'orc0 #a701r0( 4h0 -o!a+0 chart0r h0r0
$0in+ a contract o' a''r0i+ht#0nt, th0 carri0r as ans0ra$l0 'or th0 loss o' th0 +oo&s r0c0i-0& 'or transportation(
2( CSC as th0 on0 hich contract0& ith MCC%% 'or th0 transport o' th0 car+o( %t ha& control o-0r hat -0ss0l it o1l& 1s0( All
thro1+ho1t its &0alin+s ith MCC%%, it r0pr0s0nt0& its0l' as a co##on carri0r( 4h0 'act that it &i& not on th0 -0ss0l it &0ci&0& to 1s0
to cons1##at0 th0 contract o' carria+0 &i& not n0+at0 its charact0r M &1ti0s as a co##on carri0r( 4h0 MCC%% co1l& not $0
r0asona$l! 08p0ct0& to inD1ir0 a$o1t th0 on0rship o' th0 -0ss0ls hich p0tition0r carri0r o''0r0& to 1tili:0( %t is -0r! &i''ic1lt M o't0n
i#possi$l0 'or th0 +0n0ral p1$lic to 0n'orc0 its ri+hts o' action 1n&0r a contract o' carria+0 i' it sho1l& $0 r0D1ir0& to 2no ho th0
act1al on0r o' th0 -0hicl0 is( %n this cas0, th0 -o!a+0 chart0r its0l' &0no#inat0& th0 p0tition0r as th0 Hon0rBop0ratorI o' th0 -0ss0l(
>( ;o( 4h0 $ill o' la&in+ as #0r0l! a r0c0ipt iss10& $! A/S to 0-i&0nc0 th0 'act that th0 +oo&s ha& $00n r0c0i-0& 'or transportation(
%t as not si+n0& $! MCC%%, as in 'act it as si#pl! si+n0& $! th0 s1p0rcar+o o' A/S( 4his is consist0nt ith th0 'act that MCC%% &i&
not contract &ir0ctl! ith A/S( 5hil0 it is tr10 that a $ill o' la&in+ #a! s0r-0 as th0 contract o' carria+0 $0t00n th0 parti0s, it cannot
pr0-ail o-0r th0 08pr0ss pro-ision o' th0 -o!a+0 chart0r that MCC%% an& p0tition0r 080c1t0&(
4( ;o( %t &0s0r-0s scant consi&0ration that th0 -o!a+0 chart0r stip1lat0& that car+o ins1ranc0 as 'or th0 chart0r0r9s acco1nt( 4his
#0ant that th0 chart0r0r o1l& ta20 car0 o' ha-in+ th0 +oo&s ins1r0&( %t co1l& not 08c1lpat0 th0 carri0r 'ro# lia$ilit! 'or th0 $r0ach o'
its contract o' carria+0( 4h0 la prohi$its it an& con&0#ns it as 1n71st M contrar! to p1$lic polic!(
5( 4h0 i&0a propos0& $! CSC is pr0post0ro1s M &an+0ro1s( MCC%% n0-0r &0alt ith A/S an& !0t p0tition0r insists that MCC%% sho1l&
s10 A/S 'or r0i#$1rs0#0nt 'or its loss( C0rtainl!, to p0r#it a co##on carri0r to 0scap0 its r0sponsi$ilit! 'or th0 +oo&s it a+r00& to
transport ($! 08p0&i0nt o' all0+in+ non*on0rship o' th0 -0ss0l it 0#plo!0&) o1l& ra&icall! &0ro+at0 'ro# th0 carri0r9s &1t! o'
08traor&inar! &ili+0nc0( %t o1l& also op0n th0 &oor to coll1sion $0t00n th0 carri0r M th0 s1ppos0& on0r an& to th0 possi$l0
shi'tin+ o' lia$ilit! 'ro# th0 carri0r to on0 itho1t an! 'inancial capa$ilit! to ans0r 'or th0 r0s1ltin+ &a#a+0s(
M%;<A;AO 4@RM%;A/ A;< "RO,@RA?@ S@RG%C@, %;C -0rs1s .)O@;%N ASS3RA;C@ COM.A;C OF ;@5 COR,BMC?@@
M CO(, %;C
?(R( ;o( 16246= Ma! 8, 2009
FAC4S:
<0l Mont0 .hilippin0s, %nc( contract0& p0tition0r Min&anao 40r#inal an& "ro20ra+0 S0r-ic0, %nc(, a st0-0&orin+ co#pan!, to
loa& an& sto a ship#0nt o' 146,288 cartons o' 'r0sh +r00n .hilippin0 $ananas an& 15,202 cartons o' 'r0sh pin0appl0s $0lon+in+ to
<0l Mont0 Fr0sh .ro&1c0 %nt0rnational, %nc( into th0 car+o hol& o' th0 -0ss0l M/V Mistrau( 4h0 -0ss0l as &oc20& at th0 port o'
<a-ao Cit! an& th0 +oo&s 0r0 to $0 transport0& $! it to th0 port o' %nchon, ,or0a in 'a-or o' consi+n00 4a0+1 %n&1stri0s, %nc( <0l
Mont0 .ro&1c0 ins1r0& th0 ship#0nt 1n&0r an Kop0n car+o polic!K ith pri-at0 r0spon&0nt .ho0ni8 Ass1ranc0 Co#pan! o' ;0
Cor2 , a non*li'0 ins1ranc0 co#pan!, an& pri-at0 r0spon&0nt Mc?00 M Co( %nc( (Mc?00), th0 1n&0rritin+ #ana+0rBa+0nt o'
.ho0ni8(
4h0 -0ss0l s0t sail 'ro# th0 port o' <a-ao Cit! an& arri-0& at th0 port o' %nchon, ,or0a( %t as th0n &isco-0r0& 1pon &ischar+0 that
so#0 o' th0 car+o as in $a& con&ition( 4h0 Marin0 Car+o <a#a+0 S1r-0!or o' %nco2 /oss an& A-0ra+0 A&71st0r o' ,or0a, thro1+h
its r0pr0s0ntati-0 "!0on+ Con+ Ahn ("!0on+), s1r-0!0& th0 08t0nt o' th0 &a#a+0 o' th0 ship#0nt( %n a s1r-0! r0port, it as stat0&
that 16,069 cartons o' th0 $anana ship#0nt an& 2,185 cartons o' th0 pin0appl0 ship#0nt 0r0 so &a#a+0& that th0! no lon+0r ha&
co##0rcial -al10(
Min&anao 40r#inal loa&0& an& sto0& th0 car+o0s a$oar& th0 M/V Mistrau( 4h0 -0ss0l s0t sail 'ro# th0 port o' <a-ao Cit! an&
arri-0& at th0 port o' %nchon, ,or0a( %t as th0n &isco-0r0& 1pon &ischar+0 that so#0 o' th0 car+o as in $a& con&ition(
<0l Mont0 .ro&1c0 'il0& a clai# 1n&0r th0 op0n car+o polic! 'or th0 &a#a+0s to its ship#0nt( Mc?009s Marin0 Clai#s %ns1ranc0
A&71st0r 0-al1at0& th0 clai# an& r0co##0n&0& that pa!#0nt in th0 a#o1nt o' L210,266(4> $0 #a&0( .ho0ni8 an& Mc?00 instit1t0&
an action 'or &a#a+0s a+ainst Min&anao 40r#inal
A't0r trial, th0 R4C h0l& that th0 onl! participation o' Min&anao 40r#inal as to loa& th0 car+o0s on $oar& th0 M/V Mistrau 1n&0r th0
&ir0ction an& s1p0r-ision o' th0 ship9s o''ic0rs, ho o1l& not ha-0 acc0pt0& th0 car+o0s on $oar& th0 -0ss0l an& si+n0& th0
'or0#an9s r0port 1nl0ss th0! 0r0 prop0rl! arran+0& an& ti+htl! s0c1r0& to ithstan& -o!a+0 across th0 op0n s0as( Accor&in+l!,
Min&anao 40r#inal cannot $0 h0l& lia$l0 'or hat0-0r happ0n0& to th0 car+o0s a't0r it ha& loa&0& an& sto0& th0#( Mor0o-0r,
citin+ th0 s1r-0! r0port, it as 'o1n& $! th0 R4C that th0 car+o0s 0r0 &a#a+0& on acco1nt o' a t!phoon hich M/V Mistrau ha&
0nco1nt0r0& &1rin+ th0 -o!a+0( %t as '1rth0r h0l& that .ho0ni8 an& Mc?00 ha& no ca1s0 o' action a+ainst Min&anao 40r#inal
$0ca1s0 th0 latt0r, hos0 s0r-ic0s 0r0 contract0& $! <0l Mont0, a &istinct corporation 'ro# <0l Mont0 .ro&1c0, ha& no contract
ith th0 ass1r0& <0l Mont0 .ro&1c0( 4h0 R4C &is#iss0& th0 co#plaint an& aar&0& th0 co1nt0rclai# o' Min&anao 40r#inal in th0
a#o1nt o' .8>,945(80 as act1al &a#a+0s an& .100,000(00 as attorn0!9s '00s(
%SS3@:
5h0th0r or not .ho0ni8 an& Mc?00 ha-0 a ca1s0 o' action an& h0th0r Min&anao 40r#inal is lia$l0 'or not ha-in+
080rcis0& 08traor&inar! &ili+0nc0 in th0 transport an& stora+0 o' th0 car+o(
R3/%;?:
;o, in th0 pr0s0nt cas0, Min&anao 40r#inal, as a st0-0&or0, as onl! char+0& ith th0 loa&in+ an& stoin+ o' th0 car+o0s
'ro# th0 pi0r to th0 ship9s car+o hol&F it as n0-0r th0 c1sto&ian o' th0 ship#0nt o' <0l Mont0 .ro&1c0( A st0-0&or0 is not a co##on
carri0r 'or it &o0s not transport +oo&s or pass0n+0rsF it is not a2in to a ar0ho1s0#an 'or it &o0s not stor0 +oo&s 'or pro'it(
**hoenix and Mc!ee appealed to the "ourt of #ppeals$ %he appellate court reversed and set aside the decision %he same court
ordered Mindanao %erminal to pay hoenix and Mc!ee &the total amount of '()*+(,-$.- plus legal interest from the filing of the
complaint until fully paid and attorneys fees of (*/ of the claim$& 0t sustained hoenixs and Mc!ees argument that the damage in
the cargoes was the result of improper stowage by Mindanao %erminal$
** Mindanao %erminal filed a motion for reconsideration+ which the "ourt of #ppeals denied in its (, 1ebruary (**. resolution$
2ence+ the present petition for review$
Crisosto8o vs Court of Appeals
FAC4S: A tra-0l a+0nc! is not an 0ntit! 0n+a+0& in th0 $1sin0ss o' transportin+ 0ith0r pass0n+0rs
or +oo&s an& is th0r0'or0, n0ith0r a pri-at0 nor a co##on carri0r( R0spon&0nt &i& not 1n&0rta20 to transport p0tition0r 'ro# on0
plac0 to anoth0r sinc0 its co-0nant ith its c1sto#0rs is si#pl! to #a20 tra-0l arran+0#0nts in th0ir $0hal'( R0spon&0nt9s s0r-ic0s
as a tra-0l a+0nc! incl1&0 proc1rin+ tic20ts an& 'acilitatin+ tra-0l p0r#its or -isas as 0ll as $oo2in+ c1sto#0rs 'or to1rs( %t is in this
s0ns0 that th0 contract $0t00n th0 parti0s in this cas0 as an or&inar! on0 'or s0r-ic0s an& not on0 o' carria+0(
.0tition0r @st0la /( Crisosto#o contract0& th0 s0r-ic0s o' r0spon&0nt Cara-an 4ra-0l an& 4o1rs
%nt0rnational, %nc( to arran+0 an& 'acilitat0 h0r $oo2in+, tic20tin+, an& acco##o&ation in a to1r &1$$0& HJ00ls o' @1rop0I( A 5O
&isco1nt on th0 total cost o' .=4,>22(=0 hich incl1&0& th0 air'ar0 as +i-0n to th0 p0tition0r( 4h0 $oo2in+ '00 as also ai-0&
$0ca1s0 p0tition0r9s ni0c0, M0ria# M0nor, as r0spon&0nt9s tic20tin+ #ana+0r(
On J1n0 12, 1991, M0nor 0nt to h0r a1nt9s r0si&0nc0 to &0li-0r p0tition0r9s tra-0l &oc1#0nts an& plan0 tic20ts( %n r0t1rn, p0tition0r
+a-0 th0 '1ll pa!#0nt 'or th0 pac2a+0 to1r( M0nor th0n tol& h0r to $0 at th0 ;A%A on Sat1r&a!, J1n0 15, 1991, to ho1rs $0'or0 h0r
'li+ht on $oar& "ritish Aira!s( 5itho1t ch0c2in+ h0r tra-0l &oc1#0nts, p0tition0r 0nt to ;A%A an& to h0r &is#a!, sh0 &isco-0r0&
that th0 'li+ht sh0 as s1ppos0& to ta20 ha& alr0a&! &0part0& th0 pr0-io1s &a!( Sh0 l0arn0& that h0r plan0 tic20t as 'or th0 'li+ht
sch0&1l0& on J1n0 14, 1991( Sh0 call0& 1p M0nor to co#plain an& M0nor s1++0st0& 1pon p0tition0r to ta20 anoth0r to1r E H"ritish
.a+0antI( .0tition0r as as20& an0 to pa! 3SL=85(00( .0tition0r +a-0 r0spon&0nt 3SL>00 as partial pa!#0nt an& co##0nc0&
th0 trip(
%SS3@: 5h0th0r or not r0spon&0nt Cara-an &i& not o$s0r-0 th0 stan&ar& o' car0 r0D1ir0& o' a co##on carri0r h0n it in'or#0& th0
p0tition0r ron+l! o' th0 'li+ht sch0&1l0(
)@/<: 4h0 p0tition as &0ni0& 'or lac2 o' #0rit( 4h0 &0cision o' th0 Co1rt o' App0als as a''ir#0&(
A co##on carri0r is &0'in0& 1n&0r Articl0 1=>2 o' th0 Ci-il Co&0 as p0rsons, corporations, 'ir#s or associations 0n+a+0& in th0
$1sin0ss o' carr!in+ or transportin+ pass0n+0rs or +oo&s or $oth, $! lan&, at0r or air, 'or co#p0nsation, a''0ctin+ th0ir s0r-ic0s to
th0 p1$lic( %t is o$-io1s 'ro# th0 a$o-0 &0'inition that r0spon&0nt is not an 0ntit! 0n+a+0& in th0 $1sin0ss o' transportin+ 0ith0r
pass0n+0rs or +oo&s an& is th0r0'or0, n0ith0r a pri-at0 nor a co##on carri0r( R0spon&0nt &i& not 1n&0rta20 to transport p0tition0r
'ro# on0 plac0 to anoth0r sinc0 its co-0nant ith its c1sto#0rs is si#pl! to #a20 tra-0l arran+0#0nts in th0ir $0hal'( R0spon&0nt9s
s0r-ic0s as a tra-0l a+0nc! incl1&0 proc1rin+ tic20ts an& 'acilitatin+ tra-0l p0r#its or -isas as 0ll as $oo2in+ c1sto#0rs 'or to1rs( %t
is in this s0ns0 that th0 contract $0t00n th0 parti0s in this cas0 as an or&inar! on0 'or s0r-ic0s an& not on0 o' carria+0(
4h0 stan&ar& o' car0 r0D1ir0& o' r0spon&0nt is that o' a +oo& 'ath0r o' a 'a#il! 1n&0r Articl0 11=> o' th0 Ci-il Co&0( 4his connot0s
r0asona$l0 car0 consist0nt ith that hich an or&inaril! pr1&0nt p0rson o1l& ha-0 o$s0r-0& h0n con'ront0& ith a si#ilar
sit1ation( %t is cl0ar that r0spon&0nt p0r'or#0& its pr0station 1n&0r th0 contract as 0ll as 0-0r!thin+ 0ls0 that as 0ss0ntial to $oo2
p0tition0r 'or th0 to1r( )a& p0tition0r 080rcis0& &10 &ili+0nc0 in th0 con&1ct o' h0r a''airs, th0r0 o1l& ha-0 $00n no r0ason 'or h0r to
#iss th0 'li+ht( ;00&l0ss to sa!, a't0r th0 tra-0l pap0rs 0r0 &0li-0r0& to p0tition0rs, it $0ca#0 inc1#$0nt 1pon h0r to ta20 or&inar!
car0 o' h0r conc0rns( 4his 1n&o1$t0&l! o1l& r0D1ir0 that sh0 at l0ast r0a& th0 &oc1#0nts in or&0r to ass1r0 h0rs0l' o' th0 i#portant
&0tails r0+ar&in+ th0 trip(