Laws Applicable: Article 1736, Article 1174
FACTS:
- Clara Uy Bico (1,528 cavans of rice worth P40,907.50) and Amparo Servando (44 cartons of colored paper toys and general merchandise worth P1,070.50) loaded on board Philippine Steam Navigation Co.'s vessel, FS-176 for carriage from Manila to Pulupandan, Negros Occidental
- Bill of Lading:
- Clause 14. Carrier shall not be responsible for loss or damage to shipments billed 'owner's risk' unless such loss or damage is due to negligence of carrier. Nor shall carrier be responsible for loss or damage caused by force majeure, dangers or accidents of the sea or other waters; war; public enemies; . . . fire . ...
- Upon arrival of the vessel at Pulupandan, in the morning of November 18, 1963, the cargoes were discharged, complete and in good order, unto the warehouse of the Bureau of Customs
- 2 pm: warehouse was razed by fire
- Before the fire, 907 cavans of rice were delivered by Uy Bico
- Uy Bico and Servando filed a claim for the value but was rejected by Philippine Steam
- CFI: favored UY Bico and Sercando
- delivery of the shipment in question to the warehouse of the Bureau of Customs is not the delivery contemplated by Article 1736
ISSUE: W/N Philippine Steam should not be liable because of the stipulation in the bill of lading exempting it from fortuitous event
HELD: YES. set aside
- Agreement was in iteration of
- Article 1174. Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen, were inevitable.
- 'caso fortuito' presents the following essential characteristics: (1) the cause of the unforeseen and unexpected occurrence, or of the failure of the debtor to comply with his obligation, must be independent of the human will; (2) it must be impossible to foresee the event which constitutes the 'caso fortuito', or if it can be foreseen, it must be impossible to avoid; (3) the occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner; and (4) the obligor must be free from any participation in the aggravation of the injury resulting to the creditor." In the case at bar, the burning of the customs warehouse was an extraordinary event which happened independently of the will of the appellant. The latter could not have foreseen the event.
- nothing in the record to show that appellant carrier ,incurred in delay in the performance of its obligation