The Yek Tong Fire & Marine Insurance Co., versus American President Lines Inc.

Facts:

 This case is an appeal from the Court of First Instance of Manila Dismissing the complaint on the
ground of Prescription.
 The Yek Tong Fire & marine Insurance Co., claim that American President Lines Inc., is not
allowed to traverse the allegations contained in the complaint but must proceed upon the
hypothetical assumption that all allegations are true.
 Arguing the procedural matters which is not part of our subject, the only thing which is part of
our discussion is the argument wherein the court can take judicial notice of the fact that a
vessel leaving on Japan on June 18, 1952 arrived Manila by July 17, 1952 will be governed by
the New Civil Code of the Philippines.
 The Yek Tong Fire also argues that the court erred in not considering its action suspended by the
extrajudicial demand which took place, according to American President Inc. own motion to
dismiss on August 22, 1952.

Issue: Whether or not the dismissal of the complaint on the ground of prescription is valid?

Held: No, The Supreme Court held that in a case governed by COGSA that the general provisions of the
Code of Civil Procedure on prescription should not be made to apply. In such case the general provision
of the new civil code ARTICLE 1155 cannot be made to apply, as such application would have the effect
extending the one year period prescription fixed in the law. It is desirable that matters affecting
transportation of goods by the sea act decided in as short time as possible; the application of the
provision of article 1155 of the new civil code would unnecessarily extend the period and permit delays
in the settlement of questions affecting transportation, contrary to the clear intent and purpose of the
law.