Case Digest (G.R. No. 90306-07)
Facts:
K.K. Shell Sekiyu Osaka Hatsubaisho and Fu Hing Oil Co., Ltd., G.R. Nos. 90306-07, July 30, 1990, Supreme Court Third Division, Cortes, J., writing for the Court. On January 7, 1987, Kumagai Kaiun Kaisha, Ltd. filed a complaint for collection with preliminary attachment in the Regional Trial Court (RTC), Branch XIV, Manila, docketed as Civil Case No. 87-38930, against Atlantic Venus Co., S.A. (owner of the vessel M/V Estella) and Crestamonte Shipping Corporation. The complaint alleged that Crestamonte, as bareboat charterer and operator of the M/V Estella, appointed N.S. Shipping Corporation (NSS) as its general agent in Japan; NSS in turn had Kumagai as local agent in Osaka. Kumagai supplied the vessel and alleged nonpayment by Crestamonte.NSS and Keihin Narasaki Corporation filed complaints-in-intervention. On May 19, 1987, Fu Hing Oil Co., Ltd. (Hong Kong) moved to intervene, claiming it supplied bunkers and barge services to the M/V Estella for US$152,412.56 and asserted a maritime lien, seeking a writ of attachment. On July 16, 1987, K.K. Shell (Japan) likewise moved to intervene, alleging it supplied bunker fuel in Tokyo and Mutsure at the request of NSS and claiming US$16,996.96 and Y1,000,000.00 as a maritime lien, also seeking preliminary attachment.
The trial court allowed Fu Hing’s intervention (June 19, 1987) and K.K. Shell’s intervention (August 11, 1987). Writs of preliminary attachment issued August 25, 1987 and were discharged September 3, 1987 upon posting of counterbonds. Atlantic and the M/V Estella moved to dismiss the complaints-in-intervention.
Atlantic and the M/V Estella then petitioned the Court of Appeals (CA) in CA-G.R. SP No. 12999 to annul the RTC orders of April 30 and August 11, 1987; that petition was consolidated with CA-G.R. SP No. 12341. Fu Hing and K.K. Shell intervened in the CA proceedings. In a decision dated June 14, 1989, the CA annulled the RTC orders and directed the trial court to cease and desist from proceeding with Civil Case No. 87-38930. The CA reasoned that Fu Hing and K.K. Shell were not independent suppliers but sub-agents of NSS and therefore bound by the Agency Agreement between Crestamonte and NSS — in particular paragraph 12.0, a Japan choice-of-forum clause.
Fu H...(Pro-only)
Issues:
- Did the Court of Appeals err procedurally and factually in annulling the trial court’s orders and directing the trial court to cease proceedings insofar as K.K. Shell’s intervention is concerned?
- Substantively, is K.K. Shell bound by the Agency Agreement (as a sub-agent of NSS) and its choice-of-forum clause, or may K.K. Shell assert a maritime lien under P.D. No. 1521 and pursue its claim in the Philippines (or is dismissal required o...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)