Reynaldo and Teodoro Labayen entered a contract with Talisay-Silay Milling Company to mill sugar canes from their hacienda Dos Hermanos. The contract stipulated the construction of a railroad by the company to the hacienda. However, the company was only able to construct the railroad to a neighboring hacienda due to difficulties extending it further. The Labayens sued for damages, but the court ruled against them. On appeal, the court held that the company could not be liable because a landowner along the proposed railroad path did not grant permission, preventing fulfillment of the contract.
Reynaldo and Teodoro Labayen entered a contract with Talisay-Silay Milling Company to mill sugar canes from their hacienda Dos Hermanos. The contract stipulated the construction of a railroad by the company to the hacienda. However, the company was only able to construct the railroad to a neighboring hacienda due to difficulties extending it further. The Labayens sued for damages, but the court ruled against them. On appeal, the court held that the company could not be liable because a landowner along the proposed railroad path did not grant permission, preventing fulfillment of the contract.
Reynaldo and Teodoro Labayen entered a contract with Talisay-Silay Milling Company to mill sugar canes from their hacienda Dos Hermanos. The contract stipulated the construction of a railroad by the company to the hacienda. However, the company was only able to construct the railroad to a neighboring hacienda due to difficulties extending it further. The Labayens sued for damages, but the court ruled against them. On appeal, the court held that the company could not be liable because a landowner along the proposed railroad path did not grant permission, preventing fulfillment of the contract.
Reynaldo Labayen and Teodoro Labayen are the owners of Dos
Hermanos, a hacienda in Talisay, Negros Occidental. They entered into a contract with Talisay-Silay Milling Company Incorporated, also called the Central, for the milling of sugar canes from their hacienda.
Stipulated in the contract is the construction of a railroad with three
and a half meters right of way and maintenance of such railroad by the central. However, the central was only able to construct a railroad reaching hacienda Esmeralda No. 2, four kilometers away from hacienda Dos Hermanos. For a railroad to extend to hacienda Dos Hermanos, the construction would require a gradual elevation of 4.84% to 7%, would necessitate 26 curves and would cost Php80,000.00. A civil engineer testifying in behalf of the defendants allege that to construct such would be possible but it would be very dangerous. This led to an action for damages in the amount of Php 28,620.00 by the petitioners for the alleged breach of contract to grind sugar canes at the Court of First Instance of Negros Occidental. The court ruled against the petitioners and on the cross-complaint of the defendants, condemned the petitioners to pay the sum of Php 12, 114.00.
Hence, this petition.
ISSUE
Whether or not the action for damages should prosper.
HELD
No. If the obligor voluntarily prevented the fulfillment of the
condition of the obligation, such condition shall be deemed fulfilled (article 1186 of the New Civil Code). The path of the railroad has to pass through the haciendas of Esteban de la Rama. Since he would not grant permission to use his land, therefore preventing the compliance of the obligation to grind, the action cannot prosper. Labayen vs Talisay-Silay Milling Co. Inc. G.R. No. L-29298 聽(1928)
March 15, 2016
Ponente: Justice Malcom
FACTS
Reynaldo Labayen and Teodoro Labayen are the owners of Dos
Hermanos, a hacienda in Talisay, Negros Occidental. They entered into a contract with Talisay-Silay Milling Company Incorporated, also called the Central, for the milling of sugar canes from their hacienda.
Stipulated in the contract is the construction of a railroad with three
and a half meters right of way and maintenance of such railroad by the central. However, the central was only able to construct a railroad reaching hacienda Esmeralda No. 2, four kilometers away from hacienda Dos Hermanos. For a railroad to extend to hacienda Dos Hermanos, the construction would require a gradual elevation of 4.84% to 7%, would necessitate 26 curves and would cost Php80,000.00. A civil engineer testifying in behalf of the defendants allege that to construct such would be possible but it would be very dangerous. This led to an action for damages in the amount of Php 28,620.00 by the petitioners for the alleged breach of contract to grind sugar canes at the Court of First Instance of Negros Occidental. The court ruled against the petitioners and on the cross-complaint of the defendants, condemned the petitioners to pay the sum of Php 12, 114.00.
Hence, this petition.
ISSUE
Whether or not the action for damages should prosper.
HELD
No. If the obligor voluntarily prevented the fulfillment of the
condition of the obligation, such condition shall be deemed fulfilled (article 1186 of the New Civil Code). The path of the railroad has to pass through the haciendas of Esteban de la Rama. Since he would not grant permission to use his land, therefore preventing the compliance of the obligation to grind, the action cannot prosper.