Facts:
Petitioner Chua Yek Hong was a licensed copra dealer at Puerta Galera, Oriental Mindoro who, in October 1977, loaded one thousand sacks of copra valued at P101,227.40 aboard the vessel
M/V Luzviminda I, owned by private respondents
Mariano Guno and
Dominador Olit, for shipment to Manila; the vessel capsized and sank between Cape Santiago and Calatagan, Batangas, and the cargo never reached Manila. On 30 March 1979, petitioner filed a Complaint for damages for breach of contract of carriage before the Court of First Instance of Oriental Mindoro (Civil Case No. R-3205); the Trial Court, by Decision dated 17 May 1983, found for petitioner and ordered defendants jointly and severally to pay P101,227.40 for the cargo, P65,550.00 for miscellaneous expenses, attorney’s fees of P5,000.00, and costs. On appeal, the Intermediate Appellate Court, in a Decision promulgated 3 April 1986, reversed the Trial Court, applied
Article 587 of the Code of Commerce and the doctrine in
Yangco v. Laserna (73 Phil. 330 [1941]), and dismissed the complaint holding that the shipowners’ liability was co-extensive with their interest in the vessel and was extinguished by total loss; petitioner’s motion for reconsideration was denied and he sought review by certiorari in this Court, which promulgated its Decision on September 30, 1988.
Issues:
Did the Intermediate Appellate Court err in applying
Article 587 of the Code of Commerce and the doctrine of limited liability as enunciated in
Yangco v. Laserna to absolve the shipowners of liability for the lost copra?; Do the Civil Code provisions on common carriers alter the maritime rule of limited liability embodied in
Article 587 and the related doctrine?
Ruling:
Ratio:
Doctrine: