Case Digest (G.R. No. L-56028)
Facts:
Julia Millan, as Administratrix of the Estate of Jose Carpi y Sanz v. Rio y Olabarrieta, Leoncio Jaraiz, and Francisco Misut, G.R. No. 21087, February 23, 1924, Supreme Court En Banc, Street, J., writing for the Court. The action originated in the Court of First Instance of the City of Manila and the defendants appealed to the Supreme Court.The administratrix, Julia Millan, sued the partnership Rio y Olabarrieta and the individuals Leoncio Jaraiz and Francisco Misut to recover (a) the unpaid balance of the purchase price for an undivided one-half interest in the auxiliary schooner Turia and (b) damages for the loss of that interest when the Turia was wrecked. The defendants admitted execution of a sale document but maintained the sale never became effective; Rio y Olabarrieta also counterclaimed for reimbursement of expenses incurred as agents in preparing and attempting to salvage the Turia.
Jose Carpi y Sanz had owned the Turia, which was encumbered by a P24,000 mortgage. After his death Millan, as administratrix, and her attorney Eduardo Gutierrez arranged a sale dated October 19, 1920, by which the defendants agreed to purchase an undivided one-half interest for P36,000 (Jaraiz and Misut P10,000 each; Rio y Olabarrieta P16,000). P10,000 was to be immediately applied to the mortgage and P26,000 toward buying and installing a 100-hp motor. The contract contemplated joint ownership and management (Rio y Olabarrieta were to act as managers).
While awaiting the motor, Rio y Olabarrieta had the Turia towed to Sumagui, Mindoro, on October 30–November 1, 1920, to load lumber. On November 4 a typhoon drove the Turia ashore; salvage efforts failed and the vessel was sold as a wreck for P200. The Pilar (Rio y Olabarrieta’s towing boat) was recovered. Rio y Olabarrieta produced vouchers for expenses incurred in dispatching and salvaging the vessels.
At trial the Court of First Instance entered judgment for the plaintiff: holding Jaraiz and Misut jointly and several...(Subscriber-Only)
Issues:
- Were Rio y Olabarrieta liable for the loss of the Turia because of negligence in dispatching the vessel, or was the loss due to casus fortuitus (superior force)?
- Are the defendants still obligated to pay the unpaid purchase-money (P26,000) after the total loss of the vessel, or does impossibility of the intended use extinguish their obligation (Art. 1184, Civil Code)?
- Are Leoncio Jaraiz and Francisco Misut jointly and severally liable for their share of the purchase price, or liable only in the proportions they assumed?
- Is Rio y Olabarrieta entitled to reimbursement for expenses and salvage costs incurred as agents/ad...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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