Case Summary (G.R. No. 258130)
Applicable Law
The relevant legal framework includes provisions of the Civil Code concerning obligations, particularly Articles 1170 and 1173, and established jurisprudence regarding warehouse agreements and the standard of care required by warehousemen.
Facts of the Case
Basic Foods Corporation was engaged in manufacturing food products and required cold storage for its Red Star compressed yeast. It deposited 1,770 cartons of this yeast with Food Terminal Incorporated's refrigerated warehouse located in Taguig, Metro Manila, between June 10 and June 23, 1987. Due to alleged negligence by FTI in maintaining the appropriate storage temperature, 383.6 cartons of the yeast spoiled, resulting in damages valued at P161,112. Basic Foods subsequently demanded compensation from FTI, which was unmet, prompting the legal action.
Respondent's Position
In its answer to the complaint, FTI disputed the claim that Basic Foods deposited 1,770 cartons, asserting that only 750 cartons were stored. FTI contended that it exercised the utmost diligence required by law to care for the goods, and claimed any deterioration in quality was due to Basic Foods' negligence or uncontrollable circumstances. FTI indicated it had pre-cooled the area and attempted to maintain the temperature within the specified range through monitoring.
Trial Court Decision
The trial court dismissed Basic Foods' complaint, finding in favor of FTI. It determined that FTI had indeed adhered to its contractual obligations regarding the storage of the yeast.
Court of Appeals Ruling
Basic Foods appealed the trial court's decision to the Court of Appeals, which on December 17, 1992, ruled in favor of Basic Foods, reversing the trial court's decision. The Appellate Court held that FTI exhibited negligence by failing to maintain the required storage conditions, making it liable for the damages incurred by Basic Foods.
Supreme Court Decision
The Supreme Court upheld the decision of the Court of Appeals, stating that the issue presented was primarily a factual one, and therefore, the findings of
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Case Overview
- This case is an appeal via certiorari from the decision of the Court of Appeals, which reversed the ruling of the trial court.
- The Court of Appeals held the petitioner, Food Terminal Incorporated (FTI), liable to pay the respondent, Basic Foods Corporation, the amount of P161,112.00 along with legal interest from the date of filing the complaint and costs.
Factual Background
- Basic Foods Corporation was engaged in manufacturing food products that required the use of Red Star compressed yeast, necessitating refrigeration to prevent spoilage.
- FTI operated a refrigerated warehouse in Taguig, Metro Manila, where Basic Foods stored 1,770 cartons of the yeast from June 10, 1987, to June 23, 1987.
- Due to FTI’s alleged negligence in maintaining the temperature of the storage area, 383.6 cartons of the yeast spoiled, prompting Basic Foods to demand compensation, which FTI did not honor.
Trial Court Proceedings
- FTI denied storing 1,770 cartons, claiming only 750 cartons were deposited an