Case Digest (G.R. No. L-26339)
Facts:
Mariano C. Pamintuan v. Court of Appeals and Yu Ping Kun Co., Inc., G.R. No. L-26339, December 14, 1979, Supreme Court Second Division, Aquino, J., writing for the Court.In 1960 Pamintuan held a barter license authorizing export of one thousand metric tons of white flint corn in exchange for plastic sheetings valued at US$47,000. Acting under that license he arranged with Toyo Menka Kaisha, Ltd. (Osaka) for shipments of plastic sheetings and then contracted to sell those sheetings to Yu Ping Kun Co., Inc. for ₱265,550, the buyer undertaking to open an irrevocable domestic letter of credit in Pamintuan’s favor. The sales contract provided delivery "within one month upon arrival" at the buyer’s bodegas and contained a stipulation that any violation would entitle the aggrieved party to collect liquidated damages of ₱10,000 (Exh. A).
Between September 27 and October 4, 1960 the Japanese suppliers shipped four consignments aggregating 339,440 yards (US$47,000). Pamintuan received the goods in Manila but delivered to the company only 224,150 yards in several partial deliveries in November 1960, withholding the remainder (about 115,290 yards) and storing some shipments in a bonded warehouse under his brother’s name. While deliveries were pending, Pamintuan told the buyer he needed immediate cash and the parties agreed to fix the price at ₱0.782 per yard (by dividing ₱265,550 by 339,440 yards) so the buyer promptly paid and Pamintuan delivered sheetings of inferior quality for part of the consignment.
On December 2, 1960 Yu Ping Kun Co., Inc. filed an amended complaint for damages. The trial court awarded the company (1) unrealized profits of ₱67,174.17, (2) overpayment of ₱12,282.26, (3) stipulated liquidated damages of ₱10,000, (4) moral damages ₱10,000, (5) ₱1,102.85 premium on attachment bond, and (6) ₱10,000 attorney’s fees — total ₱110,559.28. The Court of Appeals affirmed but disallowed moral damages (Resolution of June 29, 19...(Subscriber-Only)
Issues:
- Is Yu Ping Kun Co., Inc. limited to the stipulated liquidated damages of ₱10,000 as the sole remedy for breach of the sales contract?
- If not, may the buyer recover actual damages proven in this case where the obligor was found guilty of fraud in the fulfillmen...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)