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G.R. No. 156978 - Aboitiz Shipping Corp. v. New India Assurance Co. Ltd.:

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G.R. No. 156978 - Aboitiz Shipping Corp. v. New India Assurance Co. Ltd.

SECOND DIVISION

[G.R. NO. 156978 : August 24, 2007]

ABOITIZ SHIPPING CORPORATION, Petitioner, v. NEW INDIA ASSURANCE

COMPANY, LTD., Respondent.

RESOLUTION

QUISUMBING, J.:

In its Motion for Reconsideration, 1 petitioner seeks the reversal of this Court's

Decision 2 dated May 2, 2006, and the referral of this case to the Court En Banc
allegedly due to its inconsistency with the rulings in Monarch Insurance Co., Inc. v.

Court of Appeals 3 and Aboitiz Shipping Corporation v. General Accident Fire and

Life Assurance Corporation, Ltd. 4 (GAFLAC).

The pertinent facts are undisputed.

On October 31, 1980, M/V P. Aboitiz , a vessel owned by petitioner, sank on her
voyage from Hong Kong to Malaysia. Respondent is the insurer of the lost
cargoes loaded on board M/V P. Aboitiz and consigned to General Textile, Inc.
After respondent indemnified General Textile, Inc., it was subrogated to its rights,
interests and actions against petitioner.

Respondent filed an action docketed as Civil Case No. 82-1475 before the
Regional Trial Court of Manila, Branch 36, for recovery against petitioner, among
others, claiming P142,401.60 as actual damages, attorney's fees, exemplary
damages and costs of suit. On November 20, 1989, the trial court held petitioner
liable for the total value of the lost cargoes instead of applying the doctrine of

August-2007 Jurisprudence
A.M. NO. 07-6-159-MeTC -
ABSENCE WITHOUT
OFFICIAL LEAVE [AWOL] of
EMMANUEL MINANO, ETC.
A.C. No. 2984 - Rodolfo M.
Bernardo v. Atty. Ismael F.
Mejia
A.C. No. 6422 - Wilfredo T.
Garcia v. Atty. Baniamino A.
Lopez
A.C. No. 6483 - Nicolas O.
Tan v. Atty. Amadeo E. Balon,
Jr.
A.C. No. 6634 - Tan Tiong Bio
AKA Henry Tan v. Atty Renata
L. Gonzales
A.C. No. 6788 - Formerly
CBD 382 - Diana Ramos v. Atty
limited liability. 5 The Court of Appeals affirmed in toto the trial court's decision and
denied petitioner's motion for reconsideration. 6
Petitioner elevated the case to this Court raising the issue of whether the doctrine
of limited liability, which limits respondent's award of damages to its pro rata share
in the insurance proceeds, applies in this case. 7 In our May 2, 2006 Decision, we
denied the petition for lack of merit and affirmed the decision of the Court of
Appeals holding petitioner liable for the total value of the lost cargo. 8
Hence, this Motion for Reconsideration, raising the following as issues:
I.
THE DECISION DISREGARDED THE EARLIER RULINGS OF THIS
HONORABLE COURT IN GAFLAC (217 SCRA 259) AND THE
MONARCH CASES (333 SCRA 71), WHERE BOTH HELD THAT
ABOITIZ' LIABILITY IS LIMITED TO THE VALUE OF THE
INSURANCE PROCEEDS NOTWITHSTANDING THE FINDING
THAT ABOITIZ WAS AT FAULT.
II.
THE DECISION VIOLATES PARAGRAPH 3, SECTION 4 OF
ARTICLE VIII OF THE CONSTITUTION WHICH STATES IN PART
THAT - "NO DOCTRINE OR PRINCIPLE OF LAW LAID DOWN BY
THE COURT IN A DECISION RENDERED EN BANC OR IN
DIVISION MAY BE MODIFIED OR REVERSED EXCEPT BY THE
COURT SITTING EN BANC." (CITATIONS OMITTED.) 9
Simply, the issue is: Did the May 2, 2006 Decision modify or reverse the rulings in
Monarch and GAFLAC contrary to Section 4(3) 10 of Article VIII of the
Constitution? cralaw library
Petitioner seeks the referral of this case to the Court En Banc alleging that our
May 2, 2006 Decision modified or reversed the doctrines in GAFLAC and
Monarch, where we ruled that petitioner's liability was limited to the claimants' pro
rata share in the insurance proceeds in view of the doctrine of limited liability.
Invoking Section 4(3) of Article VIII of the Constitution, petitioner contends that no
doctrine or principle laid down by the Court in a decision rendered in division may
be modified or reversed, except by the Court sitting En Banc.
Respondent counters that petitioner should be held liable for the total value of the
lost cargo. It insists that the doctrine of limited liability does not apply because
petitioner was found negligent.
We are not swayed to reconsider.
Petitioner's arguments are mere rehash of those already submitted to and
pronounced without merit by this Court in our May 2, 2006 Decision. The basic
issues have already been passed upon and the motion discloses no cogent
reason to warrant modification of our May 2, 2006 Decision. For all litigation must
come to an end at some point, the Court En Banc should be shielded from the
importunings of litigants who resort to the convenience of an appeal to the Court
En Banc merely to hamper or delay the final resolution of the case. The Court En
Banc is not an appellate court to which our May 2, 2006 Decision may be
appealed under the present circumstances.
A perusal of GAFLAC and Monarch vis - á-vis the instant case will show that our
May 2, 2006 Decision did not modify or reverse the doctrines in GAFLAC and
Jose R. Imbang
A.C. No. 7136 - JOSELANO
GUEVARRA v. ATTY. JOSE
EMMANUEL EALA
A.C. No. 7434 - Sps. Amador
& Rosita Tejada v.
Antoniutti K. Palana
A.M. No. 06-3-149-RTC - RE:
DROPPING FROM THE ROLLS
OF LORNA M. GARCIA, ETC.
A.M. No. 06-5-286-RTC - RE:
ABSENCE WITHOUT
OFFICIAL LEAVE (AWOL) OF
ATTY. MARILYN B. JOYAS,
ETC.
A.M. No. 06-3-149-RTC - RE:
DROPPING FROM THE ROLLS
OF LORNA M. GARCIA, ETC.
A.M. No. 06-5-286-RTC - RE:
ABSENCE WITHOUT
OFFICIAL LEAVE (AWOL) OF
ATTY. MARILYN B. JOYAS,
ETC.
A.M. NO. 07-6-159-MeTC -
ABSENCE WITHOUT
OFFICIAL LEAVE [AWOL] of
EMMANUEL MIÑANO, ETC.
A.M. No. 2005-24-SC - RE:
ADMINISTRATIVE CASE FOR
FALSIFICATION OF OFFICIAL
DOCUMENTS
DISHONESTY AGAINST
RANDY S. VILLANUEVA
A.M. No. 2005-24-SC - RE:
ADMINISTRATIVE CASE FOR
FALSIFICATION OF OFFICIAL
DOCUMENTS
DISHONESTY AGAINST
RANDY S. VILLANUEVA
A.M. No. 2007-11-SC - Re:
willfull failure etc.
A.M. No. MTJ-06-1645
Formerly A.M. OCA IPI No. 05-
Monarch. The factual findings of this case were different from GAFLAC, which
precludes this Court to apply the principles enunciated therein. Here, petitioner
was found concurrently negligent with the ship captain and crew, while in
GAFLAC, there is no such finding. Then the peculiar circumstances in Monarch
called for the application of the doctrine of limited liability, as we have extensively
discussed in our May 2, 2006 Decision. chanrobles virtual law library
Atty We need only to stress that from the nature of their business and for reasons of
public policy, common carriers are bound to observe extraordinary diligence over
the goods they transport according to all the circumstances of each case. 11 In the
event of loss, destruction or deterioration of the insured goods, common carriers
are responsible, unless they can prove that the loss, destruction or deterioration
was brought about by the causes specified in Article 1734 of the Civil Code. 12 In
all other cases, common carriers are presumed to have been at fault or to have
acted negligently, unless they prove that they observed extraordinary diligence. 13
The weather was moderate when M/V P. Aboitiz sank. Both the trial and appellate
courts also ruled that the M/V P. Aboitiz sank due to its unseaworthiness and not
due to typhoon. To limit petitioner's liability to the amount of the insurance
proceeds, it has the burden of showing that the unseaworthiness of the vessel was
not due to its fault or negligence. But it failed to do so. Where the shipowner fails
to overcome the presumption of negligence, the doctrine of limited liability cannot
be applied. 14
WHEREFORE, petitioner's motion for reconsideration and referral to the Court En
Banc is DENIED WITH FINALITY. No further pleadings shall be allowed.
SO ORDERED.
Endnotes:
1 Rollo, pp. 474-481.
2 Aboitiz Shipping Corporation v. New India Assurance Company,
Ltd., G.R. No. 156978, May 2, 2006, 488 SCRA 563.
3 G.R. NOS. 92735, 94867 and 95578, June 8, 2000, 333 SCRA 71.
4 G.R. No. 100446, January 21, 1993, 217 SCRA 359.
AND 5 Rollo, p. 166.
6 Id. at 10-23 and 55.
7 Aboitiz Shipping Corporation v. New India Assurance Company,
Ltd., supra at 569-570.
8 Id. at 573.
AND
9 Rollo, p. 474.
10 Section 4.'
xxx
(3) 'no doctrine or principle of law laid down by the court
- in a decision rendered en banc or in division may be
modified or reversed except by the court sitting en banc.
1702-MTJ - In re: Sandra L. 11 Civil Code, Art. 1733.
Mino v. Judge Donato Sotero A.
Navarro etc. Art. 1733. Common carriers, from the nature of their
business and for reasons of public policy, are bound to

A.M. No. MTJ-07-1680 - observe extraordinary diligence in the vigilance over the
Formerly OCA I.P.I. No. 07- goods and for the safety of the passengers transported

1876-MTJ - Katipunan ng Tinig by them, according to all the circumstances of each

sa Adhikain Inc., et al. v. Judge case.

Luiz Zenon Maceren, et al.

Such extraordinary diligence in vigilance over the goods
is further expressed in Articles 1734, 1735, and 1745,
A.M. No. P-07-2337 -
Nos. 5, 6, and 7, while the extraordinary diligence for the
Formerly A.M. OCA IPI No. 04-
safety of the passengers is further set forth in Articles
2060-P - ROLLY
1755 and 1756.
PENTECOSTES v. ATTY.
HERMENEGILDO MARASIGAN 12 Id. at Art. 1734.

Art. 1734. Common carriers are responsible for the loss,

A.M. No. P-07-2343 - ATTY.
destruction, or deterioration of the goods, unless the
ALFONSO L. DELA VICTORIA
same is due to any of the following causes only:
v. ATTY. MARIA FE ORIG-
MALOLOY-ON
(1) Flood, storm, earthquake, lightning, or other natural
disaster or calamity;
A.M. No. P-04-1821 and A.M.
No. P-05-2018 - Judge Reuben (2) Act of the public enemy in war, whether international

P. Dela Cruz v. Atty. Anna Liza or civil;

Luna / OCA v. Atty. Anna Liza

M. Luna etc.
A.M. No. P-05-1982
xciJudge Juanita C. Tienzo v.
Dominador R. Florendo etc.te1
A.M. No. P-04-1920 - Sps.
Normandy & Ruth Bautista v.
(3) Act or omission of the shipper or owner of the goods;
(4) The character of the goods or defects in the packing
- or in the containers;
(5) Order or act of competent public authority.
13 Id. at Art. 1735.
Art. 1735. In all cases other than those mentioned in

Ernesto L. Sula etc Nos. 1, 2, 3, 4, and 5 of the preceding article, if the

goods are lost, destroyed or deteriorated, common

A.M. No. P-05-2026 - carriers are presumed to have been at fault or to have

Formerly Adm. Matter OCA-IPI acted negligently, unless they prove that they observed

No. 04-1994-P - Virginia C. extraordinary diligence as required in Article 1733.

Hanrieder v. Celia A. De Rivera

14 Central Shipping Company, Inc. v. Insurance Company of North
etc.
America, G.R. No. 150751, September 20, 2004, 438 SCRA 511,
523-524.
A.M. No. P-05-2091 - Judge
Florencia D. Sealana-Abbu etc.
v. Doreza Laurencia-Hurano, et
al.

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ALEXANDER M. CRUZ

G.R. No. 171532 - United

Overseas Bank v. Hon. Judge
Reynaldo Ros, et al.

G.R. No. 171578 - Herminio

Buena Ventura y Recto v.
People

G.R. No. 171609 - Dr. Juanito

Rubio v. The Hon. Ombudsman,
et al.

G.R. No. 171815 - Cemco

Holdings, Inc. v. National Life
Insurance Co. of the Phil. Inc.

G.R. No. 171858 - Remington

Industrial Sales Corp. v.
Chinese Young Men's Christian
Association of the Phil. Islands
etc.

G.R. No. 171941 - Land Bank

of the Phil v. Luz Lim et al.

G.R. No. 172068 - People of

the Phil. v. Rolando Mangubat

G.R. No. 172109 - Mariano

Dao-Ayan, et al. v. the Dept. of
Agrarian Reform etc., et al.

G.R. No. 172242 - Perkin

Elmer Singapore Pte Ltd. v.
Dakila Trading Corp.

G.R. No. 172315 - Republic

of the Philippines v. Andres L.
Africa, et al.

G.R. No. 172454 - Uniwide

Sales Inc. v. Mirafuente & Ng
Inc.

G.R. No. 172603 - People of

the Phil. v. Donaldo Padilla Y
Sevilla

G.R. No. 172691 - PEOPLE

OF THE PHILIPINES v.
ANTONIO CASTRO y
PAYAWAN

G.R. No. 172875 - People of

the Phil. v. Daniel Perez y
Bacani

G.R. No. 172913 - DANILO

OGALISCO v. HOLY TRINITY
COLLEGE OF GENERAL
SANTOS CITY, INC., ET AL.

G.R. No. 172975 - People of

the Phil. v. Roberto T. Garcia

G.R. No. 173392 - Phil. Ports

Authority v. Remedios Rosales-
Bondoc et al.

G.R. No. 173797 - People of

the Phil. v. Emmanuel Rocha et
al.

G.R. No. 174067 - People of

the Philippines v. Dante Jose
Divina

G.R. No. 174392 - Nelson

Cundangan v. the COMELEC,
et al.

G.R. No. 174473 - The

People of the Philippines v.
Alvin Abulon

G.R. No. 174644 - GLOBE

TELECOM, ET AL. v. JENETTE
MARIE B. CRISOLOGO

G.R. No. 174693 - Civil

Service Commission v. Dorinda
B. Bumogas

G.R. No. 174994 - In the

Matter of the Petition for a Writ
of Habeas Corpus etc. v. Lt.
Gen. Hermogenes C. Esperon,
AFP, etc. et al.

G.R. No. 175782 - The

People of the Phil. v. Domingo
Hapin Y Jazo

G.R. No. 175881 - People of

the Philippines v. Armando
Rodas, et al.

G.R. No. 175925 - People of

the Phil v. Jose Barcenal et al.

G.R. No. 175928 - People of

the Phil. v. Alvin Pringas y
Panganiban

G.R. No. 175988 - Ma. Finina

E. Vicente v. The Hon. Court of
Appeals, et al.

G.R. No. 176064 Formerly

G.R. No. 166585 - People of the
Phil. v. Antonio Miranda y Doe

G.R. No. 176266 - People of

the Phil. v. Felix Ortoa y Obia

G.R. No. 176526 - People of

the Phil. v. Jemuel Tan, et al.

G.R. No. 176627 - Glory Phil.,

Inc. v. Buena Ventura B.
Vergara, et al.

G.R. No. 177746 - People of

the Phil. v. Arturo Barlaan
Yablon

JBC No. 013 - Re: non-

disclosure before the JBC of the
adm. case filed against Judge
Quitan etc.

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