UP COLLEGE OF LAW ADMINITRATIVE LAW

ORJALO, CLARK S. PROF. CARLOTA

[Phil. American General Insurance Company, Inc. v. CA]

G.R. 101426 – May 17, 1993
SECOND DIVISION

TOPIC – Res Judicata; Finality of Judgment

SUMMARY
Davao Union Marketing shipped on board a vessel (M/V Crazy Horse) owned by respondent carrier
(Pacific Towage) bags of cement and GI sheets to Bicol Union Center of Pasacao, Camarines Sur. The
cargo was lost after the vessel was being discharged in Camarines Sur due to typhoon Saling.
PHILAMGEN, as insurer of the cargo, paid the Davao Union for the losses it suffered. PHILAMGEN, as
subrogee, then sued respondent carrier claiming that the loss of the cargo was directly and exclusively
brought about by the fault and negligence of the shipmaster and the crew of M/V Crazy Horse. The
lower court held that respondent carrier is liable. CA reversed. PHILAMGEN filed the present petition to
challenge the CA decision. Respondent carrier argues that the complaint should be dismissed on the
ground of res judicata since on April 11, 1988, the Board of Marine Inquiry had rendered a decision
recommending that the captain of the vessel and its crew be absolved of any administrative liability
arising out of the incident. The said Board held that the shipmaster was not guilty of negligence as the
proximate cause of the grounding and subsequent wreckage of the vessel.

W/N the doctrine of res judicata applies in this case and therefore the complaint shall be
dismissed – NO

One of the requisites of the principle of res judicata is that there must be, among other things,
identity of subject matters and causes of action between a first and second case in order that
the judgment in the prior case may bar that in the subsequent case. In this case, there is no identity of
causes of action and different reliefs were sought in the first and second case. The cause of action in
the marine protest was to enforce the administrative liability of the shipmaster/captain of M/V "Crazy
Horse", its officers and crew for the wreckage and sinking of the subject vessel. On the other hand, the
cause of action at bar is to enforce the civil liability of private respondent, a common carrier, for its
failure to unload the subject cargo within a period of time considered unreasonably long by the
petitioner.

DOCTRINE
One of the requisites of the principle of res judicata is that there must be, among other things,
identity of subject matters and causes of action between a first and second case in order that
the judgment in the prior case may bar that in the subsequent case.