76.

CODE OF CIVIL PROCEDURE ON PRESCRIPTION

Yek Ton Fire and Marine Insurance Co., LTD. vs. American President
Lines, Inc.

G.R. No. L-11081 April 30, 1958

Labrador, J.:

Doctrine:

In a case governed by the Carriage of Goods by Sea Act that the general
provisions of the Code of Civil Procedure on prescription should not be made
to apply. (Chua Kuy vs. Everett Steamship Corp., 93 Phil., 207; 50 Off. Gaz.,
[1], 159.)

Facts:

This case is an appeal from an order of the Court of First Instance of manila
dismissing the complaint filed in this action on the ground of prescription.
Plaintiff-appellant claims that defendant-appellee is not allowed to traverse
the allegations contained in the complaint but must proceed upon the
hypothetical assumption that all the allegations therein are true. The present
motion to dismiss traverses no allegation of the complaint; it sets up as new
matter that the goods in question arrived in Manila on July 17, 1952, on
which point the complaint has avoided making a statement to avoid a fatal
objection. Plaintiff-appellant claims that no evidence was submitted to
support this allegation; but the same does not appear to have been denied
by plaintiff-appellant

Besides, courts can take judicial notice of the fact that a vessel leaving
Japan on June 18, 1952, arrived Manila by July 17, 1952. Plaintiff-appellant
argues also that the court erred in not considering its action suspended by
the extrajudicial demand which took place, according to defendant's own
motion to dismiss, on August 22, 1952.

Issue:

In a case governed by the Carriage of Goods by Sea Act, is the general

provision of the Code of Civil Procedure on Prescription should apply?

No, if the Code of Civil Procedure on Prescription were made to apply it

would extend the prescription period.
The Court has already held in a case governed by the Carriage of Goods by
Sea Act that the general provisions of the Code of Civil Procedure on
prescription should not be made to apply. (Chua Kuy vs. Everett Steamship
Corp., 93 Phil., 207; 50 Off. Gaz., [1], 159.) In such a case the general
provisions of the new Civil Code (Article 1155) cannot be made to apply, as
such application would have the effect of extending the one-year.

Therefore, it is desirable that matters affecting transportation of goods by

sea be decided in as short a time as possible; the application of the
provisions of Article 1155 of the new Civil Code would unnecessarily extend
the period and permit delays in the settlement of questions affecting
transportation, contrary to the clear intent and purpose of the law.