A. MAGSAYSAY, INC. vs.

ANASTACIO AGAN

G.R. No. L-6393 (January 31, 1955)

PONENTE:

FACTS:

On October 6, 1949, SS San Antonio, vessel owned by A. Magsaysay, Inc. weighed anchor
and left the port of Manila bound for Basco, Batanes via Aparri, Cagayan, with general cargo belonging
to different shippers including Anastacio Agan. On October 10, 1949, the vessel reached the port of
Aparri. On October 11, 1949, when the vessel was about to leave the port, the vessel run aground for at
the mouth of the Cagayan River because there was sudden shifting of the sandbars at the mouth of the
river which the pilot failed to anticipate. Stranded, A. Magsaysay, Inc. had to request the services of
Luzon Stevedoring Co., to salvage the boat which incurred expenses to the carrier. The vessel first
proceeded to Manila for refueling then went to Basco, Batanes. Upon arrival to the port, the goods were
delivered to the respective owners and consignees except for Anastacio Agan because he has not yet paid
the general average contribution amounting to P841.40. A.Magsaysay, Inc. filed a complaint for
collection of sum of money before the Court of First Instance of Manila, which ruled in favor of
Magsaysay, Inc. and ordered Agan to pay the general average contribution. Consequently, a direct appeal
to the Supreme Court was instituted. Agan contends that there was no Gross or General Average involved
as there was no common danger on the goods, and it was the negligence of the pilot which brought about
such circumstance requiring the salvaging of the vessel.

ISSUE:

WHETHER OR NOT Anastacio Agan is not liable to pay the general average contribution because
the incident does not fall under the requisites of a general average.

DECISION:

The Court GRANTED the petition and SET ASIDE the decision of the Court of First Instance of
Manila. The Court ruled that according to the Code of Commerce, AVERAGES are classified into SIMPLE
or PARTICULAR AVERAGE and GENERAL or GROSS AVERAGE. Simple average include all expenses
and damages caused to the vessel or cargo which have not inured to the common benefit, and are,
therefore, to be borne only by the owner of the property which gave rise to the same. General or gross
average include all the damages and expenses which are deliberately caused in order to save the vessel,
its cargo, or both at the same time, from a real and known risk. Being for the common benefit the gross
averages are to be borne by the owners of the articles saved. Moreover, Tolentino, in his commentaries
on the Code of Commerce provided for the requisites of a GENERAL AVERAGE which are as follows: a)
there must be a common danger; b) that for the common safety part of the vessel or of the
cargo or both is sacrificed deliberately; c) that from the expenses or damages caused follows
the successful saving of the vessel and cargo; and d) that the expenses or damages should have
been incurred or inflicted after taking proper legal steps and authority. The circumstances provide
that there was no common danger, as the vessel was stranded on very shallow ground, that is was only
for the benefit of the vessel, when it was refloated by the Luzon Stevedoring Co. In addition, the cargo
could be unloaded should the vessel only told the consignees and that the salvaging of the vessel did not
benefit the cargo but only the vessel. Also, the procedure in acquiring contribution was not properly
observed.