G.R. No.

131166 September 30, 1999

CALTEX (PHILIPPINES), INC., petitioner,
vs.
SULPICI LINES, INC., G SIC S, ENRI!UE S. G,
EUSE"I S. G, CARLS S. G, #ICTRIAN S. G,
$%INA$R S. G, RICAR$ S. G, E$&AR$ S. G,
ARTUR S. G, E$GAR S. G, E$%UN$ S. G, 'RANCISC
SRIAN, #ECTR SHIPPING CRPRATIN, TERESITA G.
CA(E)AL, AN$ STERA E. CA(E)AL, respondents.
PAR$, J.:
TOPIC: Transportation
Doctrine: Under Art 1484 of the Civil Code, the
vendor may only exercise in the alternative the
following remedies: a.) exact fulllment of the
o!ligation" !.) cancel the sale in case the failure to #ay
covers two or more instalments and c.) foreclose the
chattel mortgage in case one has !een executed over
the #ersonalty involved in the case.

$owever, the #rovision can admit of some exce#tions
as in the #resent case, where it has !een ex#ressly
sti#ulated in the assignment that recourse may !e had
against the seller should the !uyer fail to #ay for the
!alance of the o!ligation.
Facts:
1. December 19, 1987 8 pm: motor tanker MT
Vector owned and operated by Vector Shipping
Corporation carried 8,8 barre!" o# petro!e$m
prod$ct" o# Ca!te% by &irt$e o# a charter
contract
'. December ', 1987 (:) am: MV Do*a +a,
pa""enger and cargo &e""e! owned and
operated by S$!picio -ine", .nc. !e#t the port o#
Tac!oban headed #or Mani!a with 1,/9)
pa""enger" indicated in the Coa"t 0$ard C!ear.
). December ', 1987: MT Vector co!!ided with MV
Do*a +a, in the open "ea within the &icinity o#
D$ma!i +oint between Marind$1$e and 2rienta!
Mindoro, ki!!ing a!mo"t a!! the pa""enger" and
crew member" o# both "hip" e%cept #or '/
"$r&i&or"
/. MV Do*a +a, carried an e"timated /,
pa""enger" mo"t were not in the passenger
manifest
3. The board o# marine in1$iry in 4M. Ca"e 5o.
(3)687, a#ter in&e"tigation, #o$nd that the MT
Vector, it" regi"tered operator 7ranci"co Soriano,
and it" owner and act$a! operator Vector
Shipping Corporation, were at #a$!t and
re"pon"ib!e #or it" co!!i"ion with MV Do*a +a,
(. 7ebr$ary 1), 1989: Tere"ita Ca*e,a! and Sotera
8. Ca*e,a!, Seba"tian Ca*e,a!9" wi#e and mother
re"pecti&e!y, :!ed a comp!aint #or ;Damage"
<ri"ing #rom 4reach o# Contract o# Carriage=
again"t S$!picio -ine", .nc. #or the death o#
Seba"tian 8. Ca*e,a! >p$b!ic "choo! teacher /7
year" o!d? and hi" 116year o!d da$ghter Cora,on
0. Ca*e,a!
7. S$!picio, in t$rn, :!ed a )rd party comp!aint
again"t 7ranci"co Soriano, VectorShipping
Corporation and Ca!te%
8. S$!picio a!!eged that Ca!te% chartered MT Vector
with gro"" and e&ident bad #aith knowing #$!!y
we!! that MT Vector wa" improper!y manned, i!!6
e1$ipped, $n"eaworthy and a ha,ard to "a#e
na&igation
9. @TC: di"mi""ed the third party comp!aint and
#a&ored the Ca*e,a!A" again"t S$!picio -ine"
1.C<: inc!$ded Ca!te% a" !iab!e party
Issue:
1. ." Ca!te%, a" a &oyage charterer o# a "ea &e""e!,
!iab!e #or damage" re"$!ting #rom a co!!i"ion
between the chartered &e""e! and a pa""enger
"hipB 52C
Held:
1. First: The charterer ha" no !iabi!ity #or damage"
$nder +hi!ippine Maritime !aw".
'. The re"pecti&e right" and d$tie" o# a "hipper
and the carrier depend" not on whether the
carrier i" p$b!ic or pri&ate, b$t on whether the
contract o# carriage i" a bi!! o# !ading or
e1$i&a!ent "hipping doc$ment" on the one
hand, or a charter party or "imi!ar contract on
the other.
). Ca!te% and Vector entered into a contract o#
aDreightment, a!"o known a" a &oyage charter
/. < charter party i" a contract by which an entire
"hip, or "ome principa! part thereo#, i" !et by the
owner to another per"on #or a "peci:ed time or
$"eE
3. a contract o# aDreightment i" one by which the
owner o# a "hip or other &e""e! !et" the who!e or
part o# her to a merchant or other per"on #or the
con&eyance o# good", on a partic$!ar &oyage, in
con"ideration o# the payment o# #reight.
a. < contract o# aDreightment may be either
time charter, wherein the !ea"ed &e""e! i"
!ea"ed to the charterer #or a :%ed period
o# time, or &oyage charter, wherein the
"hip i" !ea"ed #or a "ing!e &oyage.
b. .n both ca"e", the charter6party pro&ide"
#or the hire o# the &e""e! on!y, either #or a
determinate period o# time or #or a "ing!e
or con"ec$ti&e &oyage, the "hip owner to
"$pp!y the "hip9" "tore, pay #or the wage"
o# the ma"ter o# the crew, and de#ray the
e%pen"e" #or the maintenance o# the "hip.
(. .# the charter i" a contract o# aDreightment,
which !ea&e" the genera! owner in po""e""ion o#
the "hip a" owner #or the &oyage, the right" and
the re"pon"ibi!itie" o# owner"hip re"t on the
owner.
a. The charterer i" #ree #rom !iabi!ity to third
per"on" in re"pect o# the "hip.
7. Second: MT Vector i" a common carrier
8. The charter party agreement did not con&ert the
common carrier into a pri&ate carrier.
a. The partie" entered into a &oyage charter,
which retain" the character o# the &e""e!
a" a common carrier.
9. .t i" imperati&e that a p$b!ic carrier "ha!! remain
a" "$ch, notwith"tanding the charter o# the
who!e or portion o# a &e""e! by one or more
per"on", pro&ided the charter i" !imited to the
"hip on!y, a" in the ca"e o# a time6charter or
&oyage charter.
1..t i" on!y when the charter inc!$de" both the
&e""e! and it" crew, a" in a bareboat or demi"e
that a common carrier become" pri&ate, at !ea"t
in"o#ar a" the partic$!ar &oyage co&ering the
charter6party i" concerned. .nd$bitab!y, a "hip6
owner in a time or &oyage charter retain"
po""e""ion and contro! o# the "hip, a!tho$gh her
ho!d" may, #or the moment, be the property o#
the charterer.
11.< common carrier i" a per"on or corporation
who"e reg$!ar b$"ine"" i" to carry pa""enger" or
property #or a!! per"on" who may choo"e to
emp!oy and to rem$nerate him.
a. MT Vector ts the denition of a
common carrier under !rticle "#$% of
the Ci&il Code.
1'.The p$b!ic m$"t o# nece""ity re!y on the care
and "ki!! o# common carrier" in the &igi!ance
o&er the good" and "a#ety o# the pa""enger",
e"pecia!!y beca$"e with the modern
de&e!opment o# "cience and in&ention,
tran"portation ha" become more rapid, more
comp!icated and "omehow more ha,ardo$".
1).7or the"e rea"on", a pa""enger or a "hipper o#
good" i" $nder no ob!igation to cond$ct an
in"pection o# the "hip and it" crew, the carrier
being ob!iged by !aw to imp!ied!y warrant it"
"eaworthine"".
1/.Third: Ca!te% not !iab!e #or damage" $nder the
Ci&i! Code.
13.The charterer o# a &e""e! ha" no ob!igation
be#ore tran"porting it" cargo to en"$re that the
&e""e! it chartered comp!ied with a!! !ega!
re1$irement".
a. The dut' rests upon the common
carrier simpl' for (eing engaged in
)pu(lic ser&ice.)
1(.The re!ation"hip between the partie" in thi" ca"e
i" go&erned by "pecia! !aw".
17.4eca$"e o# the imp!ied warranty o#
"eaworthine"", "hipper" o# good", when
tran"acting with common carrier", are not
e%pected to in1$ire into the &e""e!9"
"eaworthine"", gen$inene"" o# it" !icen"e" and
comp!iance with a!! maritime !aw".
18.To demand more #rom "hipper" and ho!d them
!iab!e in ca"e o# #ai!$re e%hibit" nothing b$t the
#$ti!ity o# o$r maritime !aw" in"o#ar a" the
protection o# the p$b!ic in genera! i" concerned.
19.S$ch a practice wo$!d be an ab"$rdity in a
b$"ine"" where time i" a!way" o# the e""ence.
'.Con"idering the nat$re o# tran"portation
b$"ine"", pa""enger" and "hipper" a!ike
c$"tomari!y pre"$me that common carrier"
po""e"" a!! the !ega! re1$i"ite" in it" operation.