G.R. No.

147246

August 19, 2003

ASIA LIGHTERAGE AND SHIPPING, INC., petitioner, vs. COURT O APPEALS !"# PRUDENTIAL GUARANTEE AND ASSURANCE, INC., respondents. PUNO, J.$ On appeal is the Court of Appeals' May 11, 2000 Decision 1 in CA-G. . C! "o. #$1$% and &e'ruary 21, 2001 esolution2 affir(in) *ith (odification the April +, 1$$# Decision, of the e)ional -rial Court of Manila *hich found petitioner lia'le to pay private respondent the a(ount of inde(nity and attorney's fees. &irst, the facts. On .une 1,, 1$$0, ,,1%0 (etric tons of /etter 0estern 0hite 0heat in 'ul1, valued at 234#2,,1$2.,%# *as shipped 'y Maru'eni A(erican Corporation of 5ortland, Ore)on on 'oard the vessel M6! "7O C8M/9D92M !-2+ for delivery to the consi)nee, General Millin) Corporation in Manila, evidenced 'y /ill of :adin) "o. 5-D6Man-#.%-he ship(ent *as insured 'y the private respondent 5rudential Guarantee and Assurance, 9nc. a)ainst loss or da(a)e for 51#,+21,;;1.;% under Marine Car)o is1 "ote " 11<%$6$0.+ On .uly 2%, 1$$0, the carryin) vessel arrived in Manila and the car)o *as transferred to the custody of the petitioner Asia :i)htera)e and 3hippin), 9nc. -he petitioner *as contracted 'y the consi)nee as carrier to deliver the car)o to consi)nee's *arehouse at /o. 2)on), 5asi) City. On Au)ust 1%, 1$$0, $00 (etric tons of the ship(ent *as loaded on 'ar)e 53-39 999, evidenced 'y :i)htera)e eceipt "o. 0,+# ; for delivery to consi)nee. -he car)o did not reach its destination. 9t appears that on Au)ust 1;, 1$$0, the transport of said car)o *as suspended due to a *arnin) of an inco(in) typhoon. On Au)ust 22, 1$$0, the petitioner proceeded to pull the 'ar)e to 7n)ineerin) 9sland off /aseco to see1 shelter fro( the approachin) typhoon. 53-39 999 *as tied do*n to other 'ar)es *hich arrived ahead of it *hile *eatherin) out the stor( that ni)ht. A fe* days after, the 'ar)e developed a list 'ecause of a hole it sustained after hittin) an unseen protu'erance underneath the *ater. -he petitioner filed a Marine 5rotest on Au)ust 2<, 1$$0.< 9t li1e*ise secured the services of Gaspar 3alva)in) Corporation *hich refloated the 'ar)e.$ -he hole *as then patched *ith clay and ce(ent. -he 'ar)e *as then to*ed to 93:O&& ter(inal 'efore it finally headed to*ards the consi)nee's *harf on 3epte('er %, 1$$0. 2pon reachin) the 3ta. Mesa spill*ays, the 'ar)e a)ain ran a)round due to stron) current. -o avoid the

co(plete sin1in) of the 'ar)e, a portion of the )oods *as transferred to three other 'ar)es.10 -he ne=t day, 3epte('er +, 1$$0, the to*in) 'its of the 'ar)e 'ro1e. 9t san1 co(pletely, resultin) in the total loss of the re(ainin) car)o.11 A second Marine 5rotest *as filed on 3epte('er ;, 1$$0.12 On 3epte('er 1#, 1$$0, a 'iddin) *as conducted to dispose of the da(a)ed *heat retrieved and loaded on the three other 'ar)es.1, -he total proceeds fro( the sale of the salva)ed car)o *as 5201,,;$.;%.1# On the sa(e date, 3epte('er 1#, 1$$0, consi)nee sent a clai( letter to the petitioner, and another letter dated 3epte('er 1<, 1$$0 to the private respondent for the value of the lost car)o. On .anuary ,0, 1$$1, the private respondent inde(nified the consi)nee in the a(ount of 5#,10#,+%#.22.1%-hereafter, as su'ro)ee, it sou)ht recovery of said a(ount fro( the petitioner, 'ut to no avail. On .uly ,, 1$$1, the private respondent filed a co(plaint a)ainst the petitioner for recovery of the a(ount of inde(nity, attorney's fees and cost of suit. 1+ 5etitioner filed its ans*er *ith counterclai(.1; -he e)ional -rial Court

ruled in favor of the private respondent. -he dispositive portion of its Decision states> %HERE ORE, pre(ises considered, ?ud)(ent is here'y rendered orderin) defendant Asia :i)htera)e @ 3hippin), 9nc. lia'le to pay plaintiff 5rudential Guarantee @ Assurance Co., 9nc. the su( of 5#,10#,+%#.22 *ith interest fro( the date co(plaint *as filed on .uly ,, 1$$1 until fully satisfied plus 10A of the a(ount a*arded as and for attorney's fees. Defendant's counterclai( is here'y D93M9337D. 0ith costs a)ainst defendant.1< 5etitioner appealed to the Court of Appeals insistin) that it is not a co((on carrier. -he appellate court affir(ed the decision of the trial court *ith (odification. -he dispositive portion of its decision reads> 0B7 7&O 7, the decision appealed fro( is here'y A&&9 M7D *ith (odification in the sense that the salva)e value of 5201,,;$.;% shall 'e deducted fro( the a(ount of 5#,10#,+%#.22. Costs a)ainst appellant. 3O O D7 7D. 5etitioner's Motion for econsideration dated .une ,, 2000 *as li1e*ise denied 'y the appellate court in a esolution pro(ul)ated on &e'ruary 21, 2001.

Bence, this petition. 5etitioner su'(its the follo*in) errors alle)edly co((itted 'y the appellate court, viz>1$ C1D -B7 CO2 - O& A557A:3 D7C9D7D -B7 CA37 A E2O 9" A 0A8 "O- 9" ACCO D 09-B :A0 A"D6O 09-B -B7 A55:9CA/:7 D7C939O"3 O& -B7 325 7M7 CO2 - 0B7" 9- B7:D -BA57-9-9O"7 93 A COMMO" CA 97 . C2D -B7 CO2 - O& A557A:3 D7C9D7D -B7 CA37 A E2O 9" A 0A8 "O- 9" ACCO D 09-B :A0 A"D6O 09-B -B7 A55:9CA/:7 D7C939O"3 O& -B7 325 7M7 CO2 - 0B7" 9- A&&9 M7D -B7 &9"D9"G O& -B7 :O07 CO2 - A E2O -BA- O" -B7 /A393 O& -B7 5 O!939O"3 O& -B7 C9!9: COD7 A55:9CA/:7 -O COMMO" CA 97 3, FTHE LOSS OF THE CARGO IS, THEREFORE, BORNE BY THE CARRIER IN ALL CASES EXCEPT IN THE FIVE (5) CASES ENUMERATED.F C,D -B7 CO2 - O& A557A:3 D7C9D7D -B7 CA37 A E2O 9" A 0A8 "O- 9" ACCO D 09-B :A0 A"D6O 09-B -B7 A55:9CA/:7 D7C939O"3 O& -B7 325 7M7 CO2 - 0B7" 9- 7&&7C-9!7:8 CO"C:2D7D -BA- 57-9-9O"7 &A9:7D -O 7G7 C937 D27 D9:9G7"C7 A"D6O 0A3 "7G:9G7"- 9" 9-3 CA 7 A"D C23-OD8 O& -B7 CO"39G"77'3 CA GO. -he issues to 'e resolved are> C1D 0hether the petitioner is a co((on carrierH and, C2D Assu(in) the petitioner is a co((on carrier, *hether it e=ercised e=traordinary dili)ence in its care and custody of the consi)nee's car)o. On the first issue, *e rule that petitioner is a co((on carrier. Article 1;,2 of the Civil Code defines co o! c"##i$#% as persons, corporations, fir(s or associations en)a)ed in the 'usiness of carryin) or transportin) passen)ers or )oods or 'oth, 'y land, *ater, or air, for co(pensation, offerin) their services to the pu'lic. 5etitioner contends that it is not a co((on carrier 'ut a private carrier. Alle)edly, it has no fi=ed and pu'licly 1no*n route, (aintains no ter(inals, and issues no tic1ets. 9t points out that it is not o'li)ed to carry indiscri(inately for any person. 9t is not 'ound to carry )oods unless it consents. 9n short, it does not hold out its services to the )eneral pu'lic.20 0e disa)ree. 9n D& Gu'(!" )s. Cou*t o+ A,,&!-s,21 *e held that the definition of co o! c"##i$#% in Article 1;,2 of the Civil Code (a1es no distinction 'et*een one *hose principal 'usiness activity is the carryin) of persons or )oods or 'oth, and one *ho does such carryin) only as an ancillary activity. 0e also did not distin)uish 'et*een a person or enterprise offerin) transportation service on a re)ular or scheduled 'asis and one offerin) such service on an occasional, episodic or

unscheduled 'asis. &urther, *e ruled that Article 1;,2 does not distin)uish 'et*een a carrier offerin) its services to the &$!$#"' ()*'ic, and one *ho offers services or solicits 'usiness only fro( a narro* se)(ent of the )eneral population. 9n the case at 'ar, the principal 'usiness of the petitioner is that of li)htera)e and draya)e22 and it offers its 'ar)es to the pu'lic for carryin) or transportin) )oods 'y *ater for co(pensation. 5etitioner is clearly a co((on carrier. 9n D& Gu'(!", %)(#",2, *e considered private respondent 7rnesto CendaIa to 'e a co((on carrier even if his principal occupation *as not the carria)e of )oods for others, 'ut that of 'uyin) used 'ottles and scrap (etal in 5an)asinan and sellin) these ite(s in Manila. 0e therefore hold that petitioner is a co((on carrier *hether its carryin) of )oods is done on an irre)ular rather than scheduled (anner, and *ith an only li(ited clientele. A co((on carrier need not have fi=ed and pu'licly 1no*n routes. "either does it have to (aintain ter(inals or issue tic1ets. -o 'e sure, petitioner fits the test of a co((on carrier as laid do*n in .!s/os )s. Cou*t o+ A,,&!-s.2# -he test to deter(ine a co((on carrier is F*hether the )iven underta1in) is a part of the 'usiness en)a)ed in 'y the carrier *hich he has held out to the )eneral pu'lic as his occupation rather than the Juantity or e=tent of the 'usiness transacted.F2% 9n the case at 'ar, the petitioner ad(itted that it is en)a)ed in the 'usiness of shippin) and li)htera)e, 2+ offerin) its 'ar)es to the pu'lic, despite its li(ited clientele for carryin) or transportin) )oods 'y *ater for co(pensation.2; On the second issue, *e uphold the findin)s of the lo*er courts that petitioner failed to e=ercise e=traordinary dili)ence in its care and custody of the consi)nee's )oods. Co((on carriers are 'ound to o'serve e=traordinary dili)ence in the vi)ilance over the )oods transported 'y the(.2< -hey are presu(ed to have 'een at fault or to have acted ne)li)ently if the )oods are lost, destroyed or deteriorated. 2$ -o overco(e the presu(ption of ne)li)ence in the case of loss, destruction or deterioration of the )oods, the co((on carrier (ust prove that it e=ercised e=traordinary dili)ence. -here are, ho*ever, e=ceptions to this rule. Article 1;,# of the Civil Code enu(erates the instances *hen the presu(ption of ne)li)ence does not attach> Art. 1;,#. Co((on carriers are responsi'le for the loss, destruction, or deterioration of the )oods, unless the sa(e is due to any of the follo*in) causes only> C1D &lood, stor(, earthJua1e, li)htnin), or other natural disaster or cala(ityH C2D Act of the pu'lic ene(y in *ar, *hether international or civilH C,D Act or o(ission of the shipper or o*ner of the )oodsH

C#D -he character of the )oods or defects in the pac1in) or in the containersH C%D Order or act of co(petent pu'lic authority. 9n the case at 'ar, the 'ar)e co(pletely san1 after its to*in) 'its 'ro1e, resultin) in the total loss of its car)o. 5etitioner clai(s that this *as caused 'y a typhoon, hence, it should not 'e held lia'le for the loss of the car)o. Bo*ever, petitioner failed to prove that the typhoon is the pro=i(ate and only cause of the loss of the )oods, and that it has e=ercised due dili)ence 'efore, durin) and after the occurrence of the typhoon to prevent or (ini(iKe the loss. ,0 -he evidence sho* that, even 'efore the to*in) 'its of the 'ar)e 'ro1e, it had already previously sustained da(a)e *hen it hit a sun1en o'?ect *hile doc1ed at the 7n)ineerin) 9sland. 9t even suffered a hole. Clearly, this could not 'e solely attri'uted to the typhoon. -he partly-su'(er)ed vessel *as refloated 'ut its hole *as patched *ith only clay and ce(ent. -he patch *or1 *as (erely a provisional re(edy, not enou)h for the 'ar)e to sail safely. -hus, *hen petitioner persisted to proceed *ith the voya)e, it rec1lessly e=posed the car)o to further da(a)e. A portion of the cross-e=a(ination of Alfredo Cunanan, car)o-surveyor of -an-Gatue Ad?ust(ent Co., 9nc., states> C O33-7GAM9"A-9O" /8 A--8. DO"" :77>,1 === J === ===

Can you tell us *hat else transpired after that incidentL

a - After the first accident, throu)h the initiative of the 'ar)e o*ners, they tried to pull out the 'ar)e fro( the place of the accident, and 'rin) it to the anchor ter(inal for safety, then after decidin) if the vessel is sta'iliKed, they tried to pull it to the consi)nee's *arehouse, no* *hile on route another accident occurred, no* this ti(e the 'ar)e totally hittin) so(ethin) in the course. J - 8ou said there *as another accident, can you tell the court the nature of the second accidentL a -he sin1in), sir.

J - Can you tell the nature . . . can you tell the court, if you 1no* *hat caused the sin1in)L a - Mostly it *as related to the first accident 'ecause there *as already a *hole (%ic) on the 'otto( part of the 'ar)e. === === ===

-his is not all. 5etitioner still headed to the consi)nee's *harf despite 1no*led)e of an inco(in) typhoon. Durin) the ti(e that the 'ar)e *as headin) to*ards the consi)nee's *harf on 3epte('er %, 1$$0, typhoon F:olen)F has already entered

the 5hilippine area of responsi'ility.,2 A part of the testi(ony of o'ert /oyd, Car)o Operations 3upervisor of the petitioner, reveals> D9 7C--7GAM9"A-9O" /8 A--8. :77>,, === === ===

J - "o*, Mr. 0itness, did it not occur to you it (i)ht 'e safer to ?ust allo* the /ar)e to lie *here she *as instead of to*in) itL a - 3ince that ti(e that the /ar)e *as refloated, GMC CGeneral Millin) Corporation, the consi)neeD as 9 have said *as in a hurry for their )oods to 'e delivered at their 0harf since they needed 'adly the *heat that *as loaded in 53-39-,. 9t *as needed 'adly 'y the consi)nee. J a And this is the reason *hy you to*ed the /ar)e as you didL 8es, sir. === === ===

C O33-7GAM9"A-9O" /8 A--8. 9G"AC9O>,# === === ===

J - And then fro( 93:O&& -er(inal you proceeded to the pre(ises of the GMCL A( 9 correctL a - -he ne=t day, in the (ornin), *e hired for additional t*o C2D tu)'oats as 9 have stated. J - Despite of the threats of an inco(in) typhoon as you testified a *hile a)oL a - 9t is already in an inner portion of 5asi) iver. -he typhoon *ould 'e co(in) and it *ould 'e dan)erous if *e are in the vicinity of Manila /ay. J a /ut the fact is, the typhoon *as inco(in)L 8es or noL 8es.

J - And yet as a standard operatin) procedure of your Co(pany, you have to secure a sort of Certification to deter(ine the *eather condition, a( 9 correctL a 8es, sir. 3o, (ore or less, you had the 1no*led)e of the inco(in) typhoon,

J ri)htL

a J

8es, sir. And yet you proceeded to the pre(ises of the GMCL

a - 93:O&& -er(inal is far fro( Manila /ay and anyti(e even *ith the typhoon if you are already inside the vicinity or inside 5asi) entrance, it is a safe place to to* upstrea(. Accordin)ly, the petitioner cannot invo1e the occurrence of the typhoon as force (a?eure to escape lia'ility for the loss sustained 'y the private respondent. 3urely, (eetin) a typhoon head-on falls short of due dili)ence reJuired fro( a co((on carrier. More i(portantly, the officers6e(ployees the(selves of petitioner ad(itted that *hen the to*in) 'its of the vessel 'ro1e that caused its sin1in) and the total loss of the car)o upon reachin) the 5asi) iver, it *as no lon)er affected 'y the typhoon. -he typhoon then is not the pro=i(ate cause of the loss of the car)oH a hu(an factor, i+$+, ne)li)ence had intervened. IN 0IE% THEREO , the petition is D7"97D. -he Decision of the Court of Appeals in CA-G. . C! "o. #$1$% dated May 11, 2000 and its esolution dated &e'ruary 21, 2001 are here'y A&&9 M7D. Costs a)ainst petitioner. 3O O D7 7D.
G.R. No. 147246 August 19, 2003

ASIA LIGHTERAGE AND SHIPPING, INC., petitioner, vs. COURT OF APPEALS and PRUDENTIAL GUARANTEE AND ASSURANCE, INC., respondents. FACTS - !ne "#, "$$%, #,"&% 'etri( tons o) *etter +estern +,ite +,eat in -!./, va.!ed at US012#,"$2.#& 3as s,ipped -4 5ar!-eni A'eri(an Corporation o)Port.and , Ore6on on -oard t,e vesse. 578 NEO C95*IDIU5 8-2: )or de.iver4 to t,e (onsi6nee, Genera. 5i..in6 Corporation in 5ani.a , eviden(ed -4 *i.. o) Ladin6. - T,e s,ip'ent 3as ins!red -4 t,e private respondent Pr!dentia. G!arantee and Ass!ran(e, In(. a6ainst .oss or da'a6e. - !.4 2&, "$$%, t,e (arr4in6 vesse. arrived in 5ani.a and t,e (ar6o 3as trans)erred to t,e (!stod4 o) t,e petitioner Asia Li6,tera6e and S,ippin6, In(. T,e petitioner 3as (ontra(ted -4 t,e (onsi6nee as (arrier to de.iver t,e (ar6o to (onsi6nee;s 3are,o!se at *o. U6on6, Pasi6 Cit4 . - A!6!st "&, "$$%, $%% 'etri( tons o) t,e s,ip'ent 3as .oaded on -ar6e PSTSI III, eviden(ed -4 Li6,tera6e Re(eipt )or de.iver4 to (onsi6nee. T,e(ar6o did not rea(, its destination. - A!6!st "<, "$$%, transport o) said (ar6o 3as s!spended d!e to a 3arnin6 o) an in(o'in6 t4p,oon. - A!6!st 22, "$$%, t,e petitioner pro(eeded to p!.. t,e -ar6e to En6ineerin6 Is.and o)) *ase(o to see/ s,e.ter )ro' t,e approa(,in6 t4p,oon. PSTSI III 3as tied do3n to ot,er -ar6es 3,i(, arrived a,ead o) it 3,i.e 3eat,erin6 o!t t,e stor' t,at ni6,t. T,e -ar6e deve.oped a .ist -e(a!se o) a ,o.e it

s!stained a)ter ,ittin6 an !nseen prot!-eran(e !nderneat, t,e 3ater. - Petitioner )i.ed a 5arine Protest and se(!red t,e servi(es o) Gaspar Sa.va6in6 Corporation 3,i(, re).oated t,e -ar6e. - T,e -ar6e 3as t,en to3ed to ISLOFF ter'ina. -e)ore it ,eaded to3ards t,e (onsi6nee;s 3,ar). Upon rea(,in6 t,e Sta. 5esa spi..3a4s, t,e -ar6e a6ain ran a6ro!nd d!e to stron6 (!rrent. To avoid t,e (o'p.ete sin/in6 o) t,e -ar6e, a portion o) t,e 6oods 3as trans)erred to t,ree ot,er -ar6es. - Septe'-er :, "$$%, to3in6 -its o) t,e -ar6e -ro/e. It san/ (o'p.ete.4, res!.tin6 in t,e tota. .oss o) t,e re'ainin6 (ar6o. A se(ond 5arine Protest 3as )i.ed on Septe'-er <, "$$%. - Septe'-er "1, "$$%, a -iddin6 3as (ond!(ted to dispose o) t,e da'a6ed 3,eat retrieved and .oaded on t,e t,ree ot,er -ar6es. T,e tota. pro(eeds )ro' t,e sa.e o) t,e sa.va6ed (ar6o 3as P2%",#<$.<&."1 - Septe'-er "1, "$$%, (onsi6nee sent a (.ai' .etter to t,e petitioner, and anot,er .etter to t,e private respondent )or t,e va.!e o) t,e .ost (ar6o. - an!ar4 #%, "$$", t,e private respondent inde'ni)ied t,e (onsi6nee in t,e a'o!nt o) P1,"%1,:&1.22. As s!-ro6ee, it so!6,t re(over4 o) said a'o!nt )ro' t,e petitioner, -!t to no avai.. - !.4 #, "$$", private respondent )i.ed a (o'p.aint a6ainst t,e petitioner )or re(over4 o) t,e a'o!nt o) inde'nit4. Petitioner )i.ed its ans3er 3it, (o!nter(.ai'. - Re6iona. Tria. Co!rt r!.ed in )avor o) t,e private respondent orderin6 de)endant Asia Li6,tera6e = S,ippin6, In(. .ia-.e to pa4 p.ainti)) Pr!dentia. G!arantee = Ass!ran(e Co., In(. t,e s!' o) P1,"%1,:&1.22 3it, interest )ro' t,e date (o'p.aint 3as )i.ed on !.4 #, "$$" !nti. )!..4 satis)ied p.!s "%> o) t,e a'o!nt a3arded as and )or attorne4;s )ees. De)endant;s (o!nter(.ai' is ,ere-4 DIS5ISSED. - Petitioner appea.ed to t,e Co!rt o) Appea.s insistin6 t,at it is not a (o''on (arrier. T,e appe..ate (o!rt a))ir'ed t,e de(ision o) t,e tria. (o!rt 3it, 'odi)i(ation. Sa.va6e va.!e o) P2%",#<$.<& s,a.. -e ded!(ted )ro' t,e a'o!nt o) P1,"%1,:&1.22. - Petitioner;s 5otion )or Re(onsideration dated !ne #, 2%%% 3as .i/e3ise denied -4 t,e appe..ate (o!rt in a Reso.!tion pro'!.6ated on Fe-r!ar4 2", 2%%". Hen(e, t,is petition. ISSUE ?"@ +,et,er t,e petitioner is a (o''on (arrierA and, ?2@ Ass!'in6 t,e petitioner is a (o''on (arrier, 3,et,er it eBer(ised eBtraordinar4 di.i6en(e in its (are and (!stod4 o) t,e (onsi6nee;s (ar6o. HELD First iss!e, 3e r!.e t,at petitioner is a (o''on (arrier. Arti(.e "<#2 o) t,e Civi. Code de)ines common carriers as persons, (orporations, )ir's or asso(iations en6a6ed in t,e -!siness o) (arr4in6 or transportin6 passen6ers or 6oods or -ot,, -4 .and, 3ater, or air, )or (o'pensation, o))erin6 t,eir servi(es to t,e p!-.i(. Petitioner (ontends t,at it is not a (o''on (arrier -!t a private (arrier. It ,as no )iBed and p!-.i(.4 /no3n ro!te, 'aintains no ter'ina.s, and iss!esno ti(/ets. It is not o-.i6ed to (arr4

indis(ri'inate.4 )or an4 person. It is not -o!nd to (arr4 6oods !n.ess it (onsents. It does not ,o.d o!t its servi(es to t,e 6enera. p!-.i(. +e disa6ree. In De G!C'an vs. Co!rt o) Appea.s, t,e de)inition o) common carriers in Arti(.e "<#2 o) t,e Civi. Code 'a/es no distin(tion -et3een one 3,ose prin(ipa. -!siness a(tivit4 is t,e (arr4in6 o) persons or 6oods or -ot,, and one 3,o does s!(, (arr4in6 on.4 as an an(i..ar4 a(tivit4. +e a.so did not distin6!is, -et3een a person or enterprise o))erin6 transportation servi(e on a re6!.ar or s(,ed!.ed -asis and one o))erin6 s!(, servi(e on an o((asiona., episodi( or !ns(,ed!.ed -asis. Arti(.e "<#2 does not distin6!is, -et3een a (arrier o))erin6 its servi(es to t,e general public, and one 3,o o))ers servi(es or so.i(its -!siness on.4 )ro' a narro3 se6'ent o) t,e 6enera. pop!.ation. Prin(ipa. -!siness o) t,e petitioner is t,at o) .i6,tera6e and dra4a6e and it o))ers its -ar6es to t,e p!-.i( )or (arr4in6 or transportin6 6oods -4 3ater )or (o'pensation. - Petitioner is a (o''on (arrier 3,et,er its (arr4in6 o) 6oods is done on an irre6!.ar rat,er t,an s(,ed!.ed 'anner, and 3it, an on.4 .i'ited (.iente.e. A (o''on (arrier need not ,ave )iBed and p!-.i(.4 /no3n ro!tes. Neit,er does it ,ave to 'aintain ter'ina.s or iss!e ti(/ets. - Petitioner )its t,e test o) a (o''on (arrier as .aid do3n in *as(os vs. Co!rt o) Appea.s. T,e test to deter'ine a (o''on (arrier is D3,et,er t,e 6iven !nderta/in6 is a part o) t,e -!siness en6a6ed in -4 t,e (arrier 3,i(, ,e ,as ,e.d o!t to t,e 6enera. p!-.i( as ,is o((!pation rat,er t,an t,e E!antit4 or eBtent o) t,e -!siness transa(ted. Petitioner ad'itted t,at it is en6a6ed in t,e -!siness o) s,ippin6 and .i6,tera6e, o))erin6 its -ar6es to t,e p!-.i(, despite its .i'ited (.iente.e )or (arr4in6 or transportin6 6oods -4 3ater )or (o'pensation. Se(ond iss!e, Petitioner )ai.ed to eBer(ise eBtraordinar4 di.i6en(e in its (are and (!stod4 o) t,e (onsi6nee;s 6oods. - Co''on (arriers are -o!nd to o-serve eBtraordinar4 di.i6en(e in t,e vi6i.an(e over t,e 6oods transported -4 t,e'. T,e4 are pres!'ed to ,ave -een at )a!.t or to ,ave a(ted ne6.i6ent.4 i) t,e 6oods are .ost, destro4ed or deteriorated. To over(o'e t,e pres!'ption o) ne6.i6en(e in t,e (ase o) .oss, destr!(tion or deterioration o) t,e 6oods, t,e (o''on (arrier '!st prove t,at it eBer(ised eBtraordinar4 di.i6en(e. T,ere are eB(eptions to t,is r!.e. Arti(.e "<#1 o) t,e Civi. Code en!'erates t,e instan(es 3,en t,e pres!'ption o) ne6.i6en(e does not atta(,. - T,e -ar6e (o'p.ete.4 san/ a)ter its to3in6 -its -ro/e, res!.tin6 in t,e tota. .oss o) its (ar6o. Petitioner )ai.ed to prove t,at t,e t4p,oon is t,eproBi'ate and on.4 (a!se o) t,e .oss o) t,e 6oods, and t,at it ,as eBer(ised d!e di.i6en(e -e)ore, d!rin6 and a)ter t,e o((!rren(e o) t,e t4p,oon to prevent or 'ini'iCe t,e .oss. - T,e eviden(e s,o3 t,at, even -e)ore t,e to3in6 -its o) t,e -ar6e -ro/e, it ,ad a.read4 previo!s.4 s!stained da'a6e 3,en it ,it a s!n/en o-Fe(t 3,i.e do(/ed at t,e En6ineerin6 Is.and . It even s!))ered a ,o.e. T,is (o!.d not -e so.e.4 attri-!ted to t,e t4p,oon. T,e part.4-s!-'er6ed vesse. 3as re).oated -!t its ,o.e 3as pat(,ed 3it, on.4 (.a4 and (e'ent. T,e pat(, 3or/ 3as

'ere.4 a provisiona. re'ed4, not eno!6, )or t,e -ar6e to sai. sa)e.4. T,!s, 3,en petitioner persisted to pro(eed 3it, t,e vo4a6e, it re(/.ess.4 eBposed t,e (ar6o to )!rt,er da'a6e. - Petitioner (annot invo/e t,e o((!rren(e o) t,e t4p,oon as )or(e 'aFe!re to es(ape .ia-i.it4 )or t,e .oss s!stained -4 t,e private respondent. S!re.4,'eetin6 a t4p,oon ,ead-on )a..s s,ort o) d!e di.i6en(e reE!ired )ro' a (o''on (arrier. 5ore i'portant.4, t,e o))i(ers7e'p.o4ees t,e'se.ves o) petitioner ad'itted t,at 3,en t,e to3in6 -its o) t,e vesse. -ro/e t,at (a!sed its sin/in6 and t,e tota. .oss o) t,e (ar6o !pon rea(,in6 t,e Pasi6 River, it 3as no .on6er a))e(ted -4 t,e t4p,oon. T,e t4p,oon t,en is not t,e proBi'ate (a!se o) t,e .oss o) t,e (ar6oA a ,!'an )a(tor, i.e., ne6.i6en(e ,ad intervened. IN 8IE+ THEREOF, t,e petition is DENIED. T,e De(ision o) t,e Co!rt o) Appea.s in CA-G.R. C8 No. 1$"$& dated 5a4 "", 2%%% and its Reso.!tion dated Fe-r!ar4 2", 2%%" are ,ere-4 AFFIR5ED.