Title
Yangco vs. Laserna
Case
G.R. No. 47447-47449
Decision Date
Oct 29, 1941
Overloaded steamer S.S. Negros capsized in a typhoon, killing passengers. Shipowner absolved of liability under maritime law's limited liability principle after vessel's total loss.

Case Summary (G.R. No. 47447-47449)

Key Dates

  • May 26, 1927: Incident date where S. S. Negros capsized.
  • October 29, 1941: Date of decision by the Supreme Court.

Applicable Law

The ruling is based on Article 587 of the Code of Commerce, relevant to maritime law, particularly pertaining to the liabilities of shipowners and agents in cases of negligence.

Facts of the Case

On the day of the incident, a typhoon signal was raised, yet the S. S. Negros departed despite warnings to the captain. The vessel was grossly overloaded with cargo and passengers. After encountering treacherous seas, it capsized, resulting in multiple fatalities, including notable individuals such as Antolin Aldana and his son, Victorioso Aldana. The heirs of these deceased individuals, as well as others, filed separate civil actions against Yangco for damages.

The Court of First Instance awarded varying damages to the heirs of the deceased passengers, which were appealed. The Court of Appeals affirmed most judgments but increased the damages awarded to the Aldana heirs.

Legal Question

The principal legal question was whether the shipowner, despite the total loss of the vessel due to the captain’s negligence, could be held liable for the resulting deaths of the passengers.

Decision Overview

The Supreme Court determined that the liability of the shipowner is limited by the provisions set forth in Article 587 of the Code of Commerce. This article stipulates that a shipowner or agent is civilly liable for damages resulting from the captain's conduct regarding the care of goods on board the vessel. Importantly, shipowners can absolve themselves of certain liabilities by abandoning the vessel and its equipment.

Analysis of Limited Liability

The court reasoned that while Article 587 explicitly mentions liability concerning the care of goods, it implicitly extends to liability for damages arising from the captain's negligence that leads to loss of life. The court referenced various legal commentaries supporting the idea that the right to abandon the vessel extends to all liabilities arising from the captain's unlawful acts.

It was noted that limited liability is a staple of maritime law, designed to protect shipowners from being

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