Title
Arada vs. Court of Appeals
Case
G.R. No. 98243
Decision Date
Jul 1, 1992
Arada, a common carrier, failed to exercise extraordinary diligence during a typhoon, leading to cargo loss; held liable for negligence despite exoneration from administrative liability.
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Case Digest (G.R. No. 98243)

Facts:

  1. Parties Involved:

    • Petitioner: Alejandro Arada, doing business under the name and style "South Negros Enterprises."
    • Respondents: Honorable Court of Appeals and San Miguel Corporation.
  2. Business Operation:

    • Alejandro Arada operates South Negros Enterprises, a small-scale shipping business engaged in transporting cargoes for various companies using five vessels.
  3. Contract of Carriage:

    • On March 24, 1982, Arada entered into a contract with San Miguel Corporation to transport 9,824 cases of beer empties valued at P176,824.80 from San Carlos City, Negros Occidental, to Mandaue City using the vessel M/L Maya.
  4. Denial of Clearance:

    • On March 24, 1982, the Philippine Coast Guard denied clearance for M/L Maya to depart due to an impending typhoon.
  5. Departure and Sinking:

    • On March 25, 1982, the vessel was granted clearance and departed. However, a typhoon developed, causing the vessel to sink on March 27, 1982, resulting in the loss of the cargo.
  6. Marine Protest and Investigation:

    • The crew filed a marine protest, and the Board of Marine Inquiry exonerated the owner, operator, officers, and crew of M/L Maya from administrative liability.
  7. Trial Court Decision:

    • The Regional Trial Court dismissed San Miguel Corporation's claim for the value of the lost cargo, ruling that the sinking was caused by a storm and that there was no negligence on the part of the carrier.
  8. Court of Appeals Decision:

    • The Court of Appeals reversed the trial court's decision, holding that Arada failed to exercise extraordinary diligence and was negligent, making him liable for the value of the lost cargo.

Issue:

  1. Primary Issue:

    • Whether Alejandro Arada, as a common carrier, is liable for the value of the lost cargo due to his failure to exercise extraordinary diligence.
  2. Subsidiary Issues:

    • Whether the factual findings of the Board of Marine Inquiry exonerating Arada from administrative liability are binding on the court.
    • Whether the sinking of M/L Maya was caused solely by a natural disaster (typhoon), exempting Arada from liability.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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