Case Digest (G.R. No. 69260)
Facts:
In Lea Mer Industries, Inc. vs. Malayan Insurance Co., Inc., decided on September 30, 2005 under G.R. No. 161745, Ilian Silica Mining contracted with Lea Mer to transport 900 metric tons of silica sand valued at ₱565,000 from Palawan to Manila aboard the barge *Judy VII*, towed by Lea Mer’s tugboat *M/V Ayalit*. Consigned to Vulcan Industrial and Mining Corporation, the cargo was insured by Malayan Insurance. On October 25, 1991, *Judy VII* sank during transit, allegedly due to Typhoon “Trining.” Malayan paid Vulcan under its policy and, by subrogation, sued Lea Mer in the Regional Trial Court of Manila (Civil Case No. 92-63159) on September 4, 1992 for reimbursement of the insurance proceeds. The trial court dismissed the complaint on December 7, 1999, ruling the loss a fortuitous event beyond Lea Mer’s control. The Court of Appeals, in CA-GR CV No. 66028, reversed on October 9, 2002, finding the vessel unseaworthy and attributing the loss to the carrier’s negligence, and denieCase Digest (G.R. No. 69260)
Facts:
- Parties and Contract
- Ilian Silica Mining engaged Lea Mer Industries, Inc. (petitioner) to transport 900 metric tons of silica sand valued at ₱565,000, consigned to Vulcan Industrial and Mining Corporation.
- Lea Mer chartered barge Judy VII (non-propelled) towed by its tugboat M/V Ayalit under an affreightment agreement; vessel cleared by the Philippine Coast Guard.
- Voyage and Sinking
- On October 25, 1991, the silica sand was loaded aboard Judy VII at Palawan with weather warnings at Signal No. 1; typhoon “Trining” was allegedly not imminent.
- During the voyage to Manila, Judy VII sank—respondent proved holes in the hull that may have aggravated water ingress; no evidence of preventive measures by petitioner’s crew.
- Insurance and Procedural History
- Malayan Insurance Co., Inc. (respondent), having indemnified Vulcan for ₱565,000, sued petitioner for reimbursement on September 4, 1992 (RTC Manila, Civil Case No. 92-63159).
- RTC dismissed in December 1999 ruling loss due to fortuitous event (typhoon). Court of Appeals reversed in October 2002, finding unseaworthiness and petitioner’s fault; petition for review filed under Rule 45.
Issues:
- Liability for Loss of Cargo
- Whether petitioner, as a common carrier, is exempted by a fortuitous event or bound by extraordinary diligence, and if the sinking was proximately caused by natural forces alone.
- Whether Judy VII was seaworthy at departure or unseaworthiness (holes in hull) renders petitioner negligent.
- Admissibility of Cargo Surveyor’s Report
- Whether the survey report by Jesus Cortez, whose affidavit was offered without his testimony, is hearsay and inadmissible to prove the truth of its findings.
- Whether the report may be considered under the exception for independently relevant statements when referred to by testifying witnesses.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)