8/17/2019 Teodoro r. Yangco vs . Manuel Laserna

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Prepared by: Nina Castillo

TEODORO R. YANGCO vs . MANUEL LASERNA

TOPIC: LIMITED LIABILITY RULE

SUMMARY:

Sip !as totally lost be"a#se o$ ne%li%en"e o$ "aptain !en te sip pro"eeded to tra&el despite bein%

o&erloaded and !arnin%s o$ bad !eater' Te (ain iss#e rests on !eter te sipo!ner or a%ent so#ld

still be liable $or da(a%es e&en to#% te sip !as totally lost' Te Co#rt eld NO) applyin% te li(ited

liability r#le !i" states tat te liability o$ te sipo!ner and a%ent e*tin%#ises !en te sip is totally

lost' Te interest o$ te a%ent and sipo!ner is li(ited to te &al#e o$ te &essel s#" tat a total loss

tereo$ res#lts to e*tin"tion o$ said interest' No (ore &essel) no (ore interest en"e) no (ore liability'

+ACTS:

 At abo#t one o,"lo"- in te a$ternoon o$ May ./) 01.2) te stea(er S' S' Ne%ros) belon%in% to petitionerTeodoro R' Yan%"o) le$t te port o$ Ro(blon on its ret#rn trip to Manila' Typoon si%nal No' . !as ten

#p) o$ !i" $a"t te "aptain !as d#ly ad&ised' Te boat !as o&erloaded as indi"ated by te loadline!i" !as / to 2 in"es belo! te s#r$a"e o$ te !ater' Ba%%a%e) tr#n-s and oter e3#ip(ents !ereeaped on te #pper de"-) te old bein% pa"-ed to "apa"ity' In addition) te &essel "arried tirty sa"-so$ "r#sed (arble and abo#t one #ndred sa"-s o$ "opra and so(e l#(ber' Te passen%ers) n#(berin%abo#t 045) !ere o&er"ro!ded) te &essel,s "apa"ity bein% li(ited to only 0.6 passen%ers' As te seabe"a(e in"reasin%ly &iolent) te &essel !as "a#%t side!ise by a bi% !a&e !i" "a#sed it to "apsi7eand sin-' Many o$ te passen%ers died in te (isap) a(on% te( relati&es o$ te respondents' Teserespondents instit#ted in te Co#rt o$ +irst Instan"e o$ Capi7 separate "i&il a"tions a%ainst petitioner tore"o&er da(a%es $or te deat o$ te passen%ers'

TRIAL COURT RULIN8

Te "o#rt a!arded te respondents da(a%es'

Petitioner) so#%t to abandon te &essel to te plainti$$s to%eter !it all its e3#ip(ents' Teabandon(ent !as denied) and an appeal !as ta-en to te Co#rt o$ Appeals'

COURT O+ APPEALS

 All te 9#d%(ents !ere a$$ir(ed' Petitioner) no! de"eased) appealed and is ere represented by is le%alrepresentati&e'

ISSUE:

May te sipo!ner or a%ent) not!itstandin% te total loss o$ te &essel as a res#lt o$ te ne%li%en"e o$ its"aptain) be properly eld liable in da(a%es $or te "onse3#ent deat o$ its passen%ers

;ELD:

No' Under te li(ited liability r#le) te liability o$ te sipo!ner or a%ent is li(ited to te &al#e o$ te&essel' Te total loss o$ te &essel e*tin%#ised te liability o$ te sipo!ner or a%ent'

RULIN8 O+ T;E SUPREME COURT

8/17/2019 Teodoro r. Yangco vs . Manuel Laserna

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>Te a%ent sall also be "i&illy liable $or te inde(nities in $a&or o$ tird persons !i"arise $ro( te "ond#"t o$ te "aptain in te "are o$ te %oods !i" te &essel "arried?but he may exempt himself theef!m by aba"#!"i"$ the vessel %ith all hee&uipme"ts a"# the fei$ht he may have ea"e# #ui"$ the v!ya$e.'

Te pro&ision a""ords a sipo!ner or a%ent te ri%t o$ abandon(ent? and by ne"essary i(pli"ation) isliability is "on$ined to tat !i" e is entitled as o$ ri%t to abandon @ >te &essel !it all er e3#ip(entsand te $rei%t it (ay a&e earned d#rin% te &oya%e'> It is tr#e tat te arti"le appears to deal only !itte li(ited liability o$ sipo!ners or a%ents $or da(a%es arisin% $ro( te (is"ond#"t o$ te "aptain in te"are o$ te %oods !i" te &essel "arries) b#t te "onsens#s o$ a#torities is to te e$$e"t tatnot!itstandin% te lan%#a%e o$ te a$ore3#oted pro&ision) te bene$it o$ li(ited liability terein pro&ided$or) applies in all "ases !erein te sipo!ner or a%ent (ay properly be eld liable $or te ne%li%ent orilli"it a"ts o$ te "aptain'

In Pilippine Sippin% Co' &s' 8ar"ia)