G.

R.No.92735.June8,
2000
MONARCHI NSURANCECO.,INC.,TABACALERAI
NSURANCECO.,I
NCandHon.J
udgeAMANTEPURI
SIMA,pet
iti
oner
s,v
s.
COURTOFAPPEALSandABOI TI
ZSHIPPINGCORPORATI
ON,r
espondent
s.
DELEON,JR.,J
.:

Fac
ts:

Allcasesarosefrom thelossofc argoesofv ari

ouss hi
pper swhentheM/VP.Aboi ti
z,acommonc ar
rierowned
andoperatedbyAboi t
iz,s
ankonherv oyagef r
om HongKongt oMani l
aonOc t
ober31,1980.Seeki
ngindemnifi
c at
ionfor
thelossoft hei
rcargoes,theshippers
,theirsuccessor
s -
in-int
erest,andthec
ar goi
nsurer
ssuchast heins
tantpet i
ti
oners
fi
ledseparatesuit
sagainstAboitizbef
oret heRegionalTrialCourt
s.

G.
R.No.
92735.

Monarc
h and Tabacal
eraareinsur anc
ec arr
ier
sofl ostc ar
goes.Theyindemnifi
ed t hes hippersand wer e
c
onsequent
lysubrogat
edtotheirri
ghts
,interest
sandac ti
onsagains
tAboiti
z,thecar
goc ar
rier.Becaus eAboit
izref
us ed
t
ocompensateMonar c
h,i
tfil
edt wocomplaintsagai
nstAboit
iz.Fori
tspart
,Tabacal
eraal
sofiledt woc omplai
ntsagainst
t
hesamedefendant.

Aboiti
zrej
ectedresponsibil
it
yf ortheclai
msont hegroundt
hatthesinkingofit
sc argovesselwasduet of orce
maj eureoranac tofGod.Aboi ti
zwass ubsequentl
ydeclar
edasindef
aultf
oritsf ai
lur
etoappearduringt hepre-t
rial
.Its
couns elf
iledamot iontosetas i
det heor derofdefaul
twi t
hnotic
eofhiswit
hdr awalassuchc ouns
el.Sinc eAboi
tizhad
repeatedlyfai
ledtoappearinc ourt,t
het ri
alcourtdeni
edthesai
dmotionandallowedMonarc handTabac alerat
opr esent
evidenceex -
parte.

Thet
rialcourtr
enderedjudgmentagai
nstAboi
ti
z.Aboi
ti
zappeal
edt
otheCour
tofAppeal
sbutt
heappealwas
di
smi
ssedf
ori
tsf ai
lur
etofi
leappell
ant
sbrief
.

Cons equentl
y,Monar c
handTabac al
eramov edforexecuti
onofj udgment .Thetri
alcourtgr
ant
edt hemotionand
i
s s
ueds eparatewr i
tsofex ec
ution.Aboi
tiz,invoki
ngt herealandhy pothec arynatureofl
iabil
it
yinmari
ti
mel aw,fil
edan
urgentmot i
ont oquas hthewr it
sofexecution.Ac cor
dingtoAboitiz,si
nc ei t
sli
abili
tyi
sli
mi t
edt ot
heval
ueoft hev es
sel
whichwasi nsuffi
cienttosati
sfytheaggregat ecl
aimsofall110c l
aimants ,toindemnifyMonarchandTabacal
eraaheadof
theotherclaimantswoul dbeprejudi
ci
altot helatt
er.MonarchandTabac aleraopposedthemot i
ontoquash.

Aboit
izfi
ledwi
ththeCourtofAppeal
sapetit
ionf orcert
ior
ariandprohi
bit
ionwi t
hpr
ayerf
orpr
eli
minar
y
i
njunc
tionand/ort
empor
aryr
est
rai
ningor
der
.Thewr
itofcer
tiorar
iandprohi
bit
ionwer
egr ant
ed.

G.
R.NOS.94867&95578

Al
li
edasi nsurer
-subr
ogeeofc onsi
gneePeakPl asti
candMet alProductsLimi
ted,fi
ledacompl
aintagai
nst
Aboi
ti
zfortherec
ov er
yofP278, 536.
50represent
ingthevalueof676bagsofPVCc ompoundand10bagsofABSplast
ic
l
ostonboar
dt heM/ VP.Aboiti
z.
Thec as
ewashear dbefor
et heRegi
onalTri
alCourt
.

Ont heotherhand,Equi tabl

e,asins ur
er-
subrogeeofc onsignee-ass
uredAx
elManufact
uringCor
porati
on,fi
led
anamendedc omplaintagains
tFr anc
oBel gianServices,F.
E.Zuell
ig,Inc.andAboit
izf
orther ecover
yofP194,794.
85
repr
esenti
ngthev alueof76dr umsofs yntheticorganictanni
ngs ubstancesand1,
000kil
ogramsofopt i
calbl
eachi
ng
agentswhichwerealsolostonboar dt
heM/ VP.Aboi ti
z .

Aboi
ti
zdis
c l
aimedresponsi
bil
it
yfortheamount sbeingrecovered,al
legingthatt
helos
swasduet oaf ort
uit
ous
ev
entoranactofGod.Itsi
milarl
yrel
iedonthedefensesofforcemejeure,seaworthines
softheves
selandexer
ciseofdue
di
li
genc
einthecar
riageofgoodsasregardsthecr
os s
-clai
m ofit
sc o-def
endant s
.

Thel owerc
our
tor
der
ed def
endantAboi
ti
zShi
ppi
ng Companyt
o paypl
aint
iffAl
li
ed Guar
ant
eeI
nsur
anc
e
Company
,Inc
.

Aboit
izappeal
edt ot heCour tofAppealswhi c
haf f
irmedthedecis
ionofthel owerc ourt.Aboiti
zf i
ledapet i
tion
forcer
tiorar
iandpr ohi
bit
ionwi t
hpr el
iminar
yinjuncti
onwi ththeCourtofAppeals.Thec hallengedor derwass etas i
de.
TherespondentJudgeisfur t
heror deredtostayt heexecuti
onofthejudgmentinsofarasitimpai rsther i
ght soft he100
otherc
laimantstotheinsuranc eproceedsinc
ludingtherightsoft
hepetit
ionertopaymor ethant hevalueoft hev esselor
theinsuranceproceedsandt odes istfr
om ex ecuti
ngt hejudgmentinsofarasitpr ej
udicest hepr o-rat
as hareofal l
c
lai
mant
stot
hei
nsur
anc
epr
oceeds
.

I
ssue:

Whetherornottheres
pondentCour
tofAppeal
ser
redi
nfi
ndi
ng,uponr
evi
ew,t
hatAboi
ti
zisent
itl
edt
othebenef
itoft
he
l
imi
tedliabi
li
tyr
ule.

Rul
ing:

Thepr
inc
ipl
eofl
imi
tedl
iabi
li
tyi
senunc
iat
edi
nthef
oll
owi
ngpr
ovi
si
onsoft
heCodeofCommer
ce:

Art.587.Theshi
pagentshal
lals
obec iv
il
lyl
iabl
efortheindemni
ti
esinfavorofthir
dpersonswhichmayar
isefr
om the
conductofthecaptai
nint hecareofgoodswhi c
hhel oadedonthevessel;buthemayex empthims
elft
heref
rom by
abandoningthev
esselwi
thallt
heequipment
sandt hefr
eighti
tmayhaveearnedduri
ngthevoyage.

Art.590.Theco-owner
sofav es
selshallbeci
vi
ll
yli
abl
eint
hepr
opor
tionoft
hei
rint
eres
tsi
nthec
ommonf
undf
ort
he
res
ultsoftheact
softhecapt
ainref
erredtoinArt
.587.

Eac
hc o-
ownermayex
empthi
msel
ffr
om hi
sli
abi
li
tybyt
heabandonment
,bef
oreanot
ary
,oft
hepar
toft
hev
ess
el
bel
ongi
ngtohi
m.

Art.837.Theciv
ill
iabil
it
yinc
urredbyshipowner
sint
hecas
epres
cri
bedint
hissect
ion,shal
lbeunder
stoodasl
i
mit
edt
o
thevalueoftheves
s elwit
halli
tsappur
tenanc
esandt
hef
rei
ght
ageserv
edduri
ngthevoyage.

Thef ail
ureofAboi ti
zt opr esents ufficientev idencet oex c ul
pat eitsel
ff rom f aultand/ ornegl i
genc ei nthe
sinkingofi tsvesselint hef ac eoft hef or
egoi ngex per ttes ti
monyc ons t
rainsust ohol dt hatAboi t
izwasc onc urrentl
yat
faultand/ ornegligentwi tht hes hipc apt
ainandc rew oft heM/ VP.Aboi ti
z.Thisi sinac cordanc ewitht her ulethatin
casesi nv olv
ingt hel i
mi tedl i
abili
tyofs hi
powner s,t hei niti
albur denofpr oofofnegl i
genc eoruns eawor t
hinessr estson
thec lai
mant s.Howev er ,onc ethev es s
elowneroranypar tyassertst her ighttol i
mi tit
sliabilit
y ,thebur denofpr oofast o
l
ac kofpr ivi
tyorknowl edgeoni tspar twithres pec tt ot hemat terofnegl igenceoruns eawor thinessisshiftedt oit.This
burden,Aboi t
izhadunf or tunatelyf ai
ledtodi s
c har ge.ThatAboi t
izf ail
edt odi scharget hebur denofpr ovingt hatthe
uns eawor thinessofi tsv es selwasnotduet oitsf aultand/ ornegl igenc es houldnothowev ermeant hatthel i
mi t
edl i
abil
ity
rulewi llnotbeappl iedt ot hepr es entcas es.Thepec uli
arc ircums tanc esher edemandt hatt her eshouldbenos tr
ict
adher enc et oproc edur alr ulesonev i
dencel estt hej us tc l
aimsofs hipper s/i
nsurersbef r
us trated.Ther uleonl imit
ed
l
iabili
tys houl dbeappl i
edi nac cordanc ewitht hel atestr ulinginAboi ti
zShi ppingCor porationv .Gener alAc ci
dentFi reand
LifeAs s uranceCor porat ion,t hatc l
aimant sbet r eatedas" creditorsi nani nsolventc orpor ationwhos eas setsar enot
enought osatis
fyt het ot ali
tyofc laimsagai nstit.