G.R. No. L-15908 - Basilan Lumber Co. vs. Cagayan Timber Export Co.

Contract Formation
On April 25, 1951, Basilan Lumber Company (plaintiff) entered into a contract with Cagayan Timber Export Company (defendant) for the delivery of 1,200,000 board feet of logs by May 31, 1951.
Contract Amendment
On July 3, 1951, the contract was amended to reduce the quantity to 500,000 board feet, with a new delivery deadline of July 15, 1951.
Further Amendment
Another amendment on August 22, 1951, increased the delivery amount to 740,000 board feet, to be delivered on or about September 1, 1951.
Loading Agreement
The contract stipulated a minimum loading rate of 50,000 board feet per gang per hatch per weather working day.
Sale to Japanese Buyer
Basilan Lumber Company sold the logs to a Japanese buyer through the East Asiatic Company, which acted as an intermediary.
Vessel Arrival
The chartered vessel "Kanatsu Maru" arrived in the Philippines on September 9, 1951, for loading the logs.
Loading Delays
The vessel was in port for 8 days but could only load 483,672 board feet due to insufficient logs and poor stevedoring service.
Demurrage Calculation
The Court of First Instance determined that the demurrage amounted to $4,141.16 due to the loading delays.
Dead Freight Calculation
The dead freight for the logs not delivered amounted to $5,673.43, leading to a total of $9,814.59 (P19,629.18) for both demurrage and dead freight.
Court of First Instance Ruling
The Court of First Instance awarded Basilan Lumber...continue reading