National Development Corporation v. Court of Appeals
National Development Corporation v. Court of Appeals
National Development Corporation v. Court of Appeals
National Development Corporation agent respectively, of the said ‘Dofia Nati’ vessel.
G.R. No. L-49407, 19 August 1988, 164 SCRA 593 Which laws govern loss or destruction of goods due to collision of
vessels outside Philippine waters?
FACTS:
HELD:
NDC as the first preferred mortgagee of three ocean going vessels
including one with the name ‘Dona Nati’ appointed MCP as its This issue has already been laid to rest by this Court in Eastern
agent to manage and operate said vessel for and in its behalf and Shipping Lines Inc. v. IAC where it was held under similar
account. Thus, the E. Philipp Corporation of New York loaded on circumstance “that the law of the country to which the goods are to
board the vessel “Dona Nati” at San Francisco, California, a total be transported governs the liability of the common carrier in case
of 1,200 bales of American raw cotton consigned to the order of of their loss, destruction or deterioration” (Article 1753, Civil Code).
Manila Banking Corporation, Manila and the People’s Bank and Thus, the rule was specifically laid down that for cargoes
Trust Company acting for and in behalf of the Pan Asiatic transported from Japan to the Philippines, the liability of the carrier
Commercial Company, Inc., who represents Riverside Mills is governed primarily by the Civil Code and in all matters not
Corporation. Also loaded on the same vessel at Tokyo, Japan, regulated by said Code, the rights and obligations of common
were the cargo of Kyokuto Boekui, Kaisa, Ltd., consigned to the carrier shall be governed by the Code of commerce and by laws
order of Manila Banking Corporation consisting of 200 cartons of (Article 1766, Civil Code). Hence, the Carriage of Goods by Sea
sodium lauryl sulfate and 10 cases of aluminum foil. Act, a special law, is merely suppletory to the provision of the Civil
Code.
En route to Manila the vessel Dofia Nati figured in a collision at Ise
Bay, Japan with a Japanese vessel ‘SS Yasushima Maru’ as a It is immaterial that the collision actually occurred in foreign waters,
result of which 550 bales of aforesaid cargo of American raw cotton such as Ise Bay, Japan. It appears, however, that collision falls
were lost and/or destroyed. The damaged and lost cargoes were among matters not specifically regulated by the Civil Code, so that
paid by the insurer to the Riverside Mills Corporation as holder of no reversible error can be found in respondent courses application
the negotiable bills of lading duly endorsed. to the case at bar of Articles 826 to 839, Book Three of the Code
of Commerce, which deal exclusively with collision of vessels.
Also considered totally lost were the aforesaid shipment of
Kyokuto, Boekui Kaisa Ltd., consigned to the order of Manila
Banking Corporation, Manila, acting for Guilcon, Manila. The total
loss was paid by the insurer to Guilcon as holder of the duly
endorsed bill of lading. Hence, plaintiff filed this complaint to