Title
Delgado Brothers, Inc. vs. Court of Appeals
Case
G.R. No. L-15654
Decision Date
Dec 29, 1960
Kleeper's goods damaged during unloading; shipping company held liable due to contractual exemption for Delgado Brothers, Inc. under Exhibit 1.

Case Summary (G.R. No. 170375)

Facts of the Case

Richard A. Kleeper initiated legal action at the Court of First Instance of Manila, claiming damages amounting to P6,729.50 for goods that were damaged when a lift van fell while being unloaded by Delgado Brothers, Inc. The shipping occurred on February 17, 1955, with the ship arriving in Manila on February 22, 1955. Following the trial, the court ordered the shipping company to pay Kleeper for his goods, including P500.00 as sentimental value and P1,000.00 as attorney's fees, with obligations for reimbursement placed on Delgado Brothers, Inc. Both defendants appealed, but the Court of Appeals upheld the trial court's decision.

Legal Issues Raised

The issue under consideration by the Court is whether Delgado Brothers, Inc. can be held liable for Kleeper’s damages, secondary to the liability of American President Lines, Ltd. The petitioner claims it is not liable based on a contractual agreement with the shipping company that should absolve them from responsibility for any damages incurred during loading operations.

Contractual Obligations and Disclaimers

Delgado Brothers, Inc. referred to Exhibit 1, a contract that purportedly absolved them of liability for damages arising from the use of their gantry crane by the shipping company. The contract stated that American President Lines, Ltd. would assume full responsibility and would not hold Delgado Brothers, Inc. liable for any damages resulting from the crane's use. The Court of Appeals, however, found that the contractual language did not exonerate Delgado Brothers, Inc. of liability for the negligence of its employees, specifically the crane operator.

Court of Appeals Findings

The Court of Appeals concluded that despite the wording in Exhibit 1, the responsibility for the negligence of Delgado Brothers, Inc.’s employee—who operated the crane—remained with the company. It reiterated the legal principle that an employer is generally liable for the acts of its employees when performed in the scope of their employment. The court remarked that the exemptions from liability must be clearly articulated in the contract to maintain validity, which was not the case here.

Examination of the Contract's Language

The petitioner argued that the language in the contract indicated that the shipping company assumed liability for negligence, yet the court interpreted the clause in a way indicating otherwise. The court held that the contractual terms did not create an explicit exemption from liability for negligence, thereby upholding the trial court's ruling. The language of the contract was deemed ambiguous, leading the Court of Appeals to reaffirm that responsibility remained with Delgado Brothers, Inc.

Discussion on Applicable Laws

Further discussions in the decision addressed the re

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