i. Eastern Shipping Lines vs CA (234 SCRA 78/G.R. No.

97412/July 12, 1994)

EASTERN SHIPPING LINES, INC., petitioner, v . HON. COURT OF APPEALS AND MERCANTILE INSURANCE COMPAN , INC., re pon!ent . FACTS! "#i i $n $%tion $&$in t !e'en!$nt #ippin& %o(p$ny, $rr$ tre oper$tor $n! )ro*er+'or,$r!er 'or !$($&e u t$ine! )y $ #ip(ent ,#ile in !e'en!$nt - %u to!y, 'ile! )y t#e in urer+ u)ro&ee ,#o p$i! t#e %on i&nee t#e v$lue o' u%# lo e /!$($&e . .n /e%e()er 4, 1981, t,o 'i)er !ru( o' ri)o'l$vin ,ere #ippe! 'ro( 0o*o#$($, J$p$n 'or !elivery ve el 1SS 2AS"2RN C.32"1 o,ne! )y !e'en!$nt 2$ tern S#ippin& 4ine . "#e #ip(ent ,$ in ure! un!er pl$inti''- 3$rine 5n ur$n%e 6oli%y No. 81/71177 'or 638,382,488.38. 9pon $rriv$l o' t#e #ip(ent in 3$nil$, it ,$ !i %#$r&e! unto t#e %u to!y o' !e'en!$nt 3etro 6ort Servi%e, 5n%. "#e l$tter e:%epte! to one !ru(, $i! to )e in )$! or!er, ,#i%# !$($&e ,$ un*no,n to pl$inti''. /e'en!$nt Allie! ;ro*er$&e Corp re%eive! t#e #ip(ent 'ro( 3etro 6ort Servi%e 5n%., one !ru( opene! $n! ,it#out e$l. Allie! ;ro*er$&e Corp. ($!e !eliverie o' t#e #ip(ent to t#e %on i&nee< ,$re#ou e. "#e l$tter e:%epte! to one !ru( ,#i%# %ont$ine! pill$&e , ,#ile t#e re t o' t#e %ontent ,$ $!ulter$te!/'$*e. 6l$inti'' %onten!e! t#$t !ue to t#e lo e /!$($&e u t$ine! )y $i! !ru(, t#e %on i&nee u''ere! lo e tot$lin& 619,732.9=, !ue to t#e '$ult $n! ne&li&en%e o' !e'en!$nt . Cl$i( ,ere pre ente! $&$in t !e'en!$nt ,#o '$ile! $n! re'u e! to p$y t#e $(e. A $ %on e>uen%e o' t#e lo e u t$ine!, pl$inti'' ,$ %o(pelle! to p$y t#e %on i&nee 619,732.9= un!er t#e $'ore t$te! ($rine in ur$n%e poli%y, o t#$t it )e%$(e u)ro&$te! to $ll t#e ri&#t o' $%tion o' $i! %on i&nee $&$in t !e'en!$nt . A 'or !e'en!$nt? 2$ tern S#ippin& + $lle&e! t#$t t#e #ip(ent ,$ !i %#$r&e! in &oo! or!er 'ro( t#e ve el unto t#e %u to!y o' 3etro 6ort Servi%e o t#$t $ny !$($&e/lo e in%urre! $'ter t#e #ip(ent ,$ in%urre! $'ter t#e #ip(ent ,$ turne! over to t#e l$tter, i no lon&er it li$)ility. 3etroport + $verre! t#$t $lt#ou&# u)@e%t #ip(ent ,$ !i %#$r&e! unto it %u to!y, portion o' t#e $(e ,$ $lre$!y in )$! or!er. Allie! ;ro*er$&e + $lle&e! t#$t pl$inti'' #$ no %$u e o' $%tion $&$in t it, not #$vin& ne&li&ent or $t '$ult 'or t#e #ip(ent ,$ $lre$!y in !$($&e $n! )$! or!er %on!ition ,#en re%eive! )y it, )ut nonet#ele , it till e:er%i e! e:tr$ or!in$ry %$re $n! !ili&en%e in t#e #$n!lin&/!elivery o' t#e %$r&o to %on i&nee in t#e $(e %on!ition #ip(ent ,$ re%eive! )y it. "ri$l Court rule! in '$vor o' pl$inti''. CA $''ir(e!. Aen%e, pre ent petition. ISSUE "! B.N $ %l$i( 'or !$($&e u t$ine! on $ #ip(ent o' &oo! %$n )e $ oli!$ry, or @oint $n! ever$l, li$)ility o' t#e %o((on %$rrier, t#e $rr$ tre oper$tor $n! t#e %u to( )ro*er. ES. HELD "! "#e le&$l rel$tion #ip )et,een t#e %on i&nee $n! t#e $rr$ tre per$tor i $*in to t#$t o' $ !epo itor $n! ,$re#ou e($n. "#e rel$tion #ip )et,een t#e %on i&nee

$n! t#e %o((on %$rrier i i(il$r to t#$t o' t#e %on i&nee $n! t#e $rr$ tre oper$tor. Sin%e it i t#e !uty o' t#e ARRAS"R2 to t$*e &oo! %$re o' t#e &oo! t#$t $re in it %u to!y $n! to !eliver t#e( in &oo! %on!ition to t#e %on i&nee, u%# re pon i)ility $l o !evolve upon t#e CARR52R. ;ot# t#e ARRAS"R2 $n! t#e CARR52R $re t#ere'ore %#$r&e! ,it# t#e o)li&$tion to !eliver t#e &oo! in &oo! %on!ition to t#e %on i&nee. Be !o not, o' %our e, i(ply )y t#e $)ove pronoun%e(ent t#$t t#e $rr$ tre oper$tor $n! t#e %u to( )ro*er $re t#e( elve $l,$y $n! ne%e $rily li$)le oli!$rily ,it# t#e %$rrier, or vice-versa, nor t#$t $tten!$nt '$%t in $ &iven %$ e ($y not v$ry t#e rule. The instant petiti#n has $een $r#%ght s#&e&' $' Eastern Shipping Lines, (hi)h, $eing the )arrier an* n#t having $een a$&e t# re$%t the pres%+pti#n #, ,a%&t, is, in an' event, t# $e he&* &ia$&e in this parti)%&ar )ase. A '$%tu$l 'in!in& o' )ot# t#e %ourt a quo $n! t#e $ppell$te %ourt, ,e t$*e note, i t#$t 1t#ere i u''i%ient evi!en%e t#$t t#e #ip(ent u t$ine! !$($&e ,#ile in t#e u%%e ive po e ion o' $ppell$nt 1 (t#e #erein petitioner $(on& t#e(). A))#r*ing&', the &ia$i&it' i+p#se* #n Eastern Shipping Lines, In)., the s#&e petiti#ner in this )ase, is inevita$&e regar*&ess #, (hether there are #thers s#&i*ari&' &ia$&e (ith it. ISSUE -! B#et#er t#e $ppli%$)le r$te o' intere t (on $,$r! o' lo or 8C. ./. HELD -! 5n Reformina vs. Tomol, t#e %ourt rule!? Co(in& to t#e %$ e $t )$r, t#e !e%i ion #erein ou&#t to )e e:e%ute! i one ren!ere! in $n A%tion 'or /$($&e 'or in@ury to per on $n! lo o' property $n! !oe not involve $ny lo$n, (u%# le 'or)e$r$n%e o' $ny (oney, &oo! or %re!it . A %orre%tly $r&ue! )y t#e priv$te re pon!ent , t#e l$, $ppli%$)le to t#e $i! %$ e i Arti%le 2279 o' t#e Ne, Civil Co!e ,#i%# re$! D Art. 2279. D 5' t#e o)li&$tion %on i t in t#e p$y(ent o' $ u( o' (oney, $n! t#e !e)tor in%ur in !el$y, t#e in!e(nity 'or !$($&e , t#ere )ein& no tipul$tion to t#e %ontr$ry, #$ll )e t#e p$y(ent o' intere t $&ree! upon, $n! in t#e $) en%e o' tipul$tion, t#e le&$l intere t ,#i%# i i: per%ent per annum. 5n Nakpil and Sons vs. Court of Appeals, t#e %ourt rule!? "#ere #oul! )e no !i pute t#$t t#e i(po ition o' 12C intere t pur u$nt to Centr$l ;$n* Cir%ul$r No. 418 . . . i $ppli%$)le only in t#e 'ollo,in&? (1) lo$n E (2) 'or)e$r$n%e o' $ny (oney, &oo! or %re!itE $n! (3) r$te $llo,e! in @u!&(ent (@u!&(ent po*en o' re'er to @u!&(ent involvin& lo$n or 'or)e$r$n%e o' $ny (oney, &oo! or %re!it . It is true that in the instant case, there is neither a loan or a forbearance, but then no interest is actually imposed provided the sums referred to in the ud!ment are paid upon the finality of the ud!ment. It is delay in the payment of such final ud!ment, that "ill cause the imposition of the interest. 5t ,ill )e note! t#$t in t#e %$ e $lre$!y $!verte! to, t#e r$te o' intere t i i(po e! on t#e tot$l u(, 'ro( t#e 'ilin& o' t#e %o(pl$int until p$i!E in ot#er ,or! , $ part of the ud!ment for dama!es . Cle$rly, t#ey $re not $ppli%$)le to t#e in t$nt %$ e. (2(p#$ i upplie!.) The ,#&&#(ing r%&es #, th%+$ ,#r ,%t%re g%i*an)e! 5. B#en $n o)li&$tion, re&$r!le o' it our%e, i.e., l$,, %ontr$%t , >u$ i+%ontr$%t , !eli%t or >u$ i+!eli%t i )re$%#e!, t#e %ontr$venor %$n )e #el! li$)le 'or !$($&e . "#e provi ion un!er "itle FG555 on 1/$($&e 1 o' t#e Civil Co!e &overn in !eter(inin& t#e (e$ ure o' re%over$)le !$($&e . 55. Bit# re&$r! p$rti%ul$rly to $n $,$r! o' intere t in t#e %on%ept o' $%tu$l $n! %o(pen $tory !$($&e , t#e r$te o' intere t, $ ,ell $ t#e $%%ru$l t#ereo', i i(po e!, $ 'ollo, ? /!$($&e) i 12C

1. B#en t#e o)li&$tion i )re$%#e!, $n! it %on i t in t#e p$y(ent o' $ u( o' (oney, i.e., $ lo$n or 'or)e$r$n%e o' (oney, t#e intere t !ue #oul! )e t#$t ,#i%# ($y #$ve )een tipul$te! in ,ritin&. Hurt#er(ore, t#e intere t !ue #$ll it el' e$rn le&$l intere t 'ro( t#e ti(e it i @u!i%i$lly !e($n!e!. 5n t#e $) en%e o' tipul$tion, t#e r$te o' intere t #$ll )e 12C per annum to )e %o(pute! 'ro( !e'$ult, i.e., 'ro( @u!i%i$l or e:tr$@u!i%i$l !e($n! un!er $n! u)@e%t to t#e provi ion o' Arti%le 1189 o' t#e Civil Co!e. 2. B#en $n o)li&$tion, not %on titutin& $ lo$n or 'or)e$r$n%e o' (oney, i )re$%#e!, $n intere t on t#e $(ount o' !$($&e $,$r!e! ($y )e i(po e! $t t#e discretion of the court $t t#e r$te o' 8C per annum. No intere t, #o,ever, #$ll )e $!@u!&e! on unli>ui!$te! %l$i( or !$($&e e:%ept ,#en or until t#e !e($n! %$n )e e t$)li #e! ,it# re$ on$)le %ert$inty. A%%or!in&ly, ,#ere t#e !e($n! i e t$)li #e! ,it# re$ on$)le %ert$inty, t#e intere t #$ll )e&in to run 'ro( t#e ti(e t#e %l$i( i ($!e @u!i%i$lly or e:tr$@u!i%i$lly (Art. 1189, Civil Co!e) )ut ,#en u%# %ert$inty %$nnot )e o re$ on$)ly e t$)li #e! $t t#e ti(e t#e !e($n! i ($!e, t#e intere t #$ll )e&in to run only 'ro( t#e !$te t#e @u!&(ent o' t#e %ourt i ($!e ($t ,#i%# ti(e t#e >u$nti'i%$tion o' !$($&e ($y )e !ee(e! to #$ve )een re$ on$)ly $ %ert$ine!). "#e $%tu$l )$ e 'or t#e %o(put$tion o' le&$l intere t #$ll, in $ny %$ e, )e on t#e $(ount 'in$lly $!@u!&e!. 3. B#en t#e @u!&(ent o' t#e %ourt $,$r!in& $ u( o' (oney )e%o(e 'in$l $n! e:e%utory, t#e r$te o' le&$l intere t, ,#et#er t#e %$ e '$ll un!er p$r$&r$p# 1 or p$r$&r$p# 2, $)ove, #$ll )e 12C per annum 'ro( u%# 'in$lity until it $ti '$%tion, t#i interi( perio! )ein& !ee(e! to )e )y t#en $n e>uiv$lent to $ 'or)e$r$n%e o' %re!it. POLIC ! 5ntere t upon $n o)li&$tion ,#i%# %$ll 'or t#e p$y(ent o' (oney, $) ent $ tipul$tion, i t#e le&$l r$te. Su%# intere t nor($lly i $llo,$)le 'ro( t#e !$te o' !e($n!, @u!i%i$l or e:tr$@u!i%i$l. ;ut t#en upon t#e provi ion o' Arti%le 2213 o' t#e Civil Co!e, intere t 1%$nnot )e re%overe! upon unli>ui!$te! %l$i( or !$($&e , e:%ept ,#en t#e !e($n! %$n )e e t$)li #e! ,it# re$ on$)le %ert$inty.1 If the suit "ere for dama!es, 1unliquidated and not kno"n until definitely ascertained, assessed and determined by the courts after proof, then, interest 1should be from the date of the decision.1