No. L-55684 – CHRYSLER PHILIPPINES CORPORATION, petitioner, vs. THE HONORABLE COURT OF APPEALS and SAMBOK MOTORS CO. (BACOLOD), respondents.
MELENCIO-HERRERA, J.
Rule Synopsis
Where the delivery to the buyer was not effected, the seller should bear the risk of loss. Res perit domino.
Facts
On September 7, 1972, Sambok allegedy ordered from Chrysler various automotive products. Chrysler then claimed to have delivered the same to Allied Brokerage Corp., the forwarding agent. The latter then loaded the goods to a vessel owned by Negros Navigation Co., for delivery to Sambok. Chrysler then demanded payment from Sambok but the latter refused to pay.
Thus, the seller filed a complaint for damages against Allied Brokerage, Negros Navigation and Sambok. The case against Sambok was founded on breach of contract.
The buyer, in its answer, said that it did not receive the goods ordered from Chrysler or any of its co-defendants.
The RTC held Sambok liable, but dismissed the case against Allied Brokerage and Negros Navigation for lack of cause of action. It found that Sambok wrongfully neglected or refused to accept and pay the subject shipment. The CA, reversed the decision, finding that Chrysler misdelivered. The Supreme Court affirmed.
Issue
Who shall bear the risk of loss?
Ruling and Discussion
Chrysler shall bear the risk of loss.
The general rule that before delivery, the risk of loss is borne by the seller who is still the owner, under the principle of “res perit domino.”
From the evidentiary record, Negros Navigation was the party negligent in failing to deliver the complete shipment to Sambok. Nevertheless, Chrysler failed to comply with the conditions precedent to the filing of a judicial action. In the last analysis, it is petitioner that must shoulder the resulting loss.
Upon receipt of the Bill of Lading, Sambok initiated, but did not pursue, steps to take delivery as they were advised by Negros Navigation that because some parts were missing, they would just be informed as soon as the missing parts were located.
It was only four years later when a warehouseman of Negros Navigation found in their off-shore bodega, parts of the shipment in question, but already deteriorated and valueless.
Sambok cannot be faulted for not accepting or refusing to accept the shipment from Negros Navigation four years after shipment. Where the seller delivers to the buyer a quantity of goods less than he contracted to sell, the buyer may reject them.
Dispositive
Decision affirmed.