Philippine Shipping Company, et al., vs. Vergara, G.R. No. L-1600 6 Phil.

,
281, June 01, 1906

SYLLABUS
1. MARITIME LAW, "REAL" NATURE OF; LOSS OF VESSEL. — "That which
distinguishes the maritime from the civil law and even from the mercantile law in
general is the ’real’ and hypothecary nature of the former, and the many securities
of a ’real’ nature that maritime customs from time immemorial, the laws, the codes,
and the later jurisprudence, have provided for the protection of the various and
conflicting interests which are ventured and risked in maritime expeditions. . . .
This repeals the civil law to such an extent that, in certain cases, where the
mortgaged property is lost no personal action lies against the owner or agent of the
vessels." (Madariaga, pp. 60-62, 62, and 85.)

2. OWNERS AND AGENTS OF VESSELS, LIABILITY. — The owners and agents of a

vessel causing the loss of another vessel by collision are not liable beyond the
vessel itself causing the collision and other things appertaining thereto.

3. — In the case at bar the vessel L., sailing in accordance with the rules of
navigation, collided with the vessel N., not so sailing, and both vessels were lost.
P., the owner of the vessel L., sues for the value of the vessel N., the vessel
causing the loss. Held, That in view of the above stated principles, the defendant is
liable for the indemnification to which the plaintiff is entitle by reason of the
collision, but he is not required to pay such indemnification for the reason that the
obligation thus incurred has been extinguished on account of the loss of the thing
bound for the payment thereof.

FACTS:

Phil. Shipping Co. owns the steamship “Lourdes” which was lost due to collision
with another ship “Navarra”, owned by defendant Vergara. Phil Ship is claiming for
damages. Another party, Ynchausti & Co. is also claiming for damages due to the
cargo that got lost that was being carried by Lourdes. The court found ship Navarra
to be responsible for the collision. It also found out that each ship is responsible for
the loss of its cargo.
ISSUE:

RULING:

The defendant, Vergara, is liable for the indemnification to which the plaintiff is
entitled by reason of the collision. But he is not required to pay such
indemnification of the reason that the obligation thus incurred has been
extinguished on account of the loss of the thing (loss of the ship) bound for the
payment thereof.