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Case Digest: Compania vs. Allied Workers, 77 SCRA 24, G.R. No. 107653

 

Compania vs. Allied Workers, 77 SCRA 24, G.R. No. 107653, February 05, 1996

Subject: Transportation Law


FACTS

In 1952, the Compañia Maritima and the Allied Free Workers Union entered into a written contract whereby the union agreed to perform arrastre and stevedoring work for the consignees. vessels at Iligan City. The union agreed to the stipulation that the company would not be liable for the payment of the services of the union "for the loading, unloading and deliveries of cargoes" and that the compensation for such services would be paid "by the owners and consignees of the cargoes" as "has been the practice in the port of Iligan City" of which the union found out later to be oppressive.

The shippers and consignees paid the union for the arrastre work only. They claimed that the shipowner was the one obligated to pay for the stevedoring service because the bill of lading provided that the unloading of the cargo was at the shipowner's expense.

The union filed in the Court of Industrial Relations (CIR) a petition praying that it be certified as the sole collective bargaining unit. Despite the case, the company served a written notice on the union that in accordance with payment of the 1952 contract, the same would be terminated. Because of that notice, the union later on filed in the CIR charges of unfair labor practices against the company.

The company entered into a new stevedoring and arrastre contract with the Iligan Stevedoring Association. On the following day, the union members picketed the wharf and prevented the Iligan Stevedoring Association from performing arrastre and stevedoring work.

The company sued the union and its officers in the CFI of Lanao for the rescission of the 1952 contract, to enjoin the union from interfering with the loading and unloading of the cargo, and for the recovery of damages.

After trial, the lower court rendered a decision in favor of the company and awarded CM 450K as damages; it held that the officers of the union are solidarily liable for this amount. Union appealed.

ISSUE

Whether or not the evidence presented by Compania Maritima warrants the award of damages in its favor.

RULING

No, it does not warrant.

In this case, the company argues that the accountants' reports are admissible in evidence because of the rule that "when the original consists of numerous accounts or other documents which cannot be examined in court without great loss of time and the fact sought to be established from them is only the general result of the whole", the original writings need not be produced (Sec. 2[e], Rule 130, Rules of Court).

Sc held that the rule cannot be applied in this case because the voluminous character of the records, on which the accountants' reports were based, was not duly established. It is also a requisite for the application of the rule that the records and accounts should be made accessible to the adverse party so that the correctness of the summary may be tested on cross-examination. What applies to this case is the general rule "that an audit made by, or the testimony of, a private auditor, is inadmissible in evidence as proof of the original records, books of accounts, reports or the like". That general rule cannot be relaxed in this case because the company failed to make a preliminary showing as to the difficulty or impossibility attending the production of the records in court and their examination and analysis as evidence by the court.

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