Sweet Lines Vs Teves

SWEET LINES vs.
TEVES
Santos, J.:
FACTS:
Atty. Leovigildo Tandog and Rogelio Tiro, a contractor by profession, bought tickets for Voyage 90 on December 31, 1971 from
Sweet Lines Inc., a shipping company transporting inter- island passengers and cargoes, at Cagayan de Oro City. They were to
board the vessel, M/S "Sweet Hope" bound for Tagbilaran City via the port of Cebu. Upon learning that the vessel was not
proceeding to Bohol, since many passengers were bound for Surigao, they went as advised to the branch office for proper
relocation to M/S "Sweet Town".
Because the said vessel was already filled to capacity, they were forced to agree "to hide at the cargo section to avoid
inspection of the officers of the Philippine Coastguard." They alleged that they were, during the trip, "exposed to the scorching
heat of the sun and the dust coming from the ship's cargo of corn grits," and that the tickets they bought at CDO City for
Tagbilaran were not honored and they were constrained to pay for other tickets.
They sued Sweet Lines for damages and for breach of contract of carriage for P10,000 in CFI Misamis Oriental. Sweet Lines
moved to dismiss the complaint on the ground of improper venue, premised Condition No. 14 printed at the back of the tickets,
stating that actions must be brought in Cebu. The motion was denied by the trial court. MR also denied. Hence, this instant
petition for prohibition for preliminary injunction, 'alleging that the respondent judge has departed from the accepted and
usual course of judicial proceeding" and "had acted without or in excess or in error of his jurisdiction or in gross abuse of
discretion.
ISSUE:
Whether Condition No. 14 is valid and enforceable. NO
HELD:
NO. There is no question that there was a valid contract of carriage entered into and that the passage tickets, upon which the
latter based their complaint, are the best evidence thereof. It is a matter of common knowledge that whenever a passenger
boards a ship for transportation from one place to another, he is issued a ticket by the shipper which has all the elements of a
written contract.
It should be borne in mind, however, that with respect to the conditions — printed at the back of the passage tickets, these are
commonly known as "contracts of adhesion". In all contractual property or other relations, when one of the parties is at a
disadvantage on account of his moral dependence, ignorance indigence, mental weakness, tender age and other handicap, the
courts must be vigilant for his protection. Condition No. 14 printed at the back of the passage tickets should be held as void and
unenforceable because first, it is not just and fair to bind passengers to the terms of the conditions such as Condition No. 14 as
printed in fine letters, and second, Condition No. 14 subverts the public policy on transfer of venue of proceedings of this
nature, since the same will prejudice rights and interests of innumerable passengers in different parts of the country who,
under Condition No. 14, will have to file suits against petitioner only in the City of Cebu.
Under these circumstances, it is hardly just and proper to expect the passengers to examine their tickets received from
crowded/congested counters, more often than not during rush hours, for conditions that may be printed much charge them
with having consented to the conditions, so printed, especially if there are a number of such conditions in fine print, as in this
case. Finally, judicial notice may be taken of the fact that the bulk of those who board these inter-island vested come from the
low-income groups and are less literate, and who have little or no choice but to avail of petitioner's vessels.
Condition No. 14 is subversive of public policy on transfers of venue of actions. Considering the expense and trouble a
passenger residing outside of Cebu City would incur to prosecute a claim in the City of Cebu, he would most probably decide
not to file the action at all. The condition will thus defeat, instead of enhance, the ends of justice.

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