Case Digest: Lusteveco vs. Court of Appeals, 156 SCRA 169, G.R. No. L-58897

 

Lusteveco vs. Court of Appeals, 156 SCRA 169, G.R. No. L-58897, December 03, 1987

Subject: Transportation Law

FACTS

On May 30, 1968 at past 6:00 in the morning a maritime collision occurred within the vicinity of the entrance to the North Harbor, Manila between the tanker LSCO "Cavite" owned by Luzon Stevedoring Corporation and MV "Fernando Escano" a passenger ship owned by Hijos de F. Escano, Inc. as a result of which said passenger ship sunk. An action in admiralty was filed by Hijos de F. Escano, Inc. and Domestic Insurance Company of the Philippines against the Luzon Stevedoring Company (LSC) in the Court of First Instance of Cebu.

In the course of the trial, the trial court appointed two commissioners representing the plaintiffs and defendant to determine the value of the LSCO "CAVITE." Said commissioners found the value thereof to be P180,000.00.

After trial on the merits, a decision was rendered on January 24, 1974 finding that LSCO "Cavite" was solely to blame for the collision.

Not satisfied therewith the defendant interposed an appeal therefrom to the Court of Appeals which affirmed the decision of the lower court.

ISSUE

Whether or not Luzon Stevedoring Corporation can invoke Art. 837 of the code of commerce. 

RULING

No.

Under the Code of Commerce abandonment of vessel at fault is necessary in order that the liability of owner of said vessel shall be limited only to the extent of the value thereof, its appurtenances and freightage earned in the voyage.

In this case, undeniably petitioner has not abandoned the vessel. Hence petitioner can not invoke the benefit of the provisions of Article 837 of the Code of Commerce to limit its liability to the value of the vessel, all the appurtenances and freightage earned during the voyage.