Republic of the Philippines JOHNS, J.

:
SUPREME COURT
Manila The only question involved in the first assignment of
EN BANC error is one of fact upon which in its decision the
G.R. No. L-28028 November 25, 1927 trial court said:
JUAN YSMAEL & CO., INC., plaintiff-appellee,
vs.
With regard to the first question, plaintiff's
GABINO BARRETTO & CO., LTD., ET AL.,
testimony, together with the manifest
defendants. ANDRES H. LIMGENGCO and
(Exhibit D), signed by "G. Barretto, Agents,"
VICENTE JAVIER,appellants.
for Andres Heras Limgengco covering the
Gibbs and McDonough for appellants.
shipment of the merchandise in question,
Felipe Ysmael and Grey & Encarnacion for appellee.
wherein 165 cases of merchandise appear as
belonging to the plaintiff corporation and the
STATEMENT bills of lading, Exhibits I, J and K, signed by
the second officer, Claro Galleros for the
In this action plaintiff, a domestic corporation, seeks shipment of the 165 cases, and Exhibits H,
to recover from the defendants P9,940.95 the which is a triplicate copy of the bill of lading
alleged value of four cases of merchandise which it No. 62, on which the first officer of the
delivered to the steamship Andres on October 25, steamer Andres, Francisco Masingsong,
1922, at Manila to be shipped to Surigao, but which made a note that among the merchandise
were never delivered to Salomon Sharuff, the discharged in Surigao were the four cases in
consignee, or returned to the plaintiff. The original question, clearly shows that the defendants
complaint was amended to include Gabino Barretto received from the plaintiff corporation 164
and P. E. Soon as members of the limited cases of merchandise, and delivered at
partnership of Gabino Barretto & Company, Limited. Surigao only 160 cases of such merchandise,
and that defendants failed to deliver the said
In their amended answers defendants make a four cases in Surigao when plaintiff's
specific denial of all of the material allegations of the representative took delivery of the cargo at
complaint, and as special defense allege that the that port, and that the original figure "1" and
four cases of merchandise in question were never the word "bulto" appearing on the back of
delivered to them, and that under the provisions of Exhibit 1 were changed by Galleros to read
paragraph the provisions of paragraph 7 of the "5" and "bultos." The said Galleros admitted
printed conditions appearing on the back of the bill as a witness that he had Exhibit 1 in his
of lading, plaintiff's right of action is barred for the possession from Manila until the cargo was
reason that it was not brought within sixty days recounted in Surigao in the presence of the
from the time the cause of action accrued. The first officer, Francisco Masingsong, Salomon
defendant Soon did not answer the complaint, and Sharuff, the bodeguero and himself
the defendants further alleged: (Galleros). lawphil.net

I. That under and by virtue of provision 12 of The testimony of Claro Galleros to the effect
the bill of lading referred to in plaintiff's that, according to the tallies made by him on
amended complaint, the defendants are not the back of Exhibit 1 during the course of
liable in excess of three hundred pesos loading, only 160 cases were loaded, on
(P300) for any package of silk unless the board the steamer Andres stands
value and contents of such packages are uncorroborated, and it is not supported by
correctly declared in the bill of lading at the the tallies themselves, as these tallies give a
time of shipment, etc. total of 161 cases. Mr. Galleros, testified that
he had shown the annotation on the back of
Exhibit 1 reading `5 bultos en duda de
The evidence was taken upon such issues, and the
menos' to Salamon Sharuff, and that
lower court rendered judgment for the plaintiff for
Salomon Sharuff gave his conformity to the
the full amount of its claim, from which the
shortage, and that on this occasion, among
defendants Andres H. Limgengco and Vicente Javier
others, were present the first officer
appeal and assign the following errors:
Francisco Masingsong, and the bodeguero in
Surigao. Upon this point, besides the
I. The lower court erred in finding that one testimony of Salomon Sharuff, who denied
hundred sixty-four cases of goods were emphatically the assertion of Galleros just
delivered to and loaded on the mentioned, we have the note made and
steamship Andres. signed by the first officer on the face of
Exhibit H that all the merchandise therein
II. The lower court erred in holding that was discharged in Surigao. The said
appellee was not bound by the terms of the Masingsong certainly would not have made
bills of lading of covering the shipments. such annotation after the delivery in Surigao,
if Salomon Sharuff had in fact agreed to the
III. The trial court erred in failing to take into shortage as testified by Galleros, especially
consideration appellants' special defense when we considered that the four cases, the
based on clause 12 of the bills of lading. value of which is claimed by plaintiff, were
included in said Exhibit H, and the fact that
IV. The lower court erred in rendering said Claro Galleros, in an affidavit signed by
judgment against appellants in the sum of him before the Notary Public Fernando Viola
P9,940.95. with regard to the lost of the four cases, did
not mention the conformity of Salomon
Sharuff to the said annotation of "5 bultos en
duda de menos." The defendants, without
 showing any legal reason therefor, did not with in bills of lading which require that any
present as witnesses the first officer, action to recover for loss or damage to the
Francisco Masingsong, and the helmsman of article shipped should be begun within a
the steamer Andres and the bodeguero in specified period. The parties may, if they see
Surigao to corroborate the testimony of fit, fix by agreement a shorter time for the
Claro Galleros. bringing of suit on the contract than that
provided by the statute of limitations, and if
There is ample evidence to support that finding. In the period therein limited is reasonable, suit
fact it is sustained by a preponderance of the must brought within that time or the
evidence. shipper's right of action will be barred. Such
a provision is prohibited by no rule of law nor
by any consideration of public policy. Nor is
The second assignment of error upon which
it all affected by the existence within the
appellants rely is founded upon paragraph 7 of the
jurisdiction of a statutory or constitutional
bill of lading, which is as follows:
prohibition against carriers limiting or
restricting their common law liability, since it
All claims for shortage or damage must be is held that such a stipulation does not in
made at the time of delivery to consignee or any way defeat the complete vestiture of the
his agent, if the packages or containers show right to recover, but merely requires the
exterior signs of damage; otherwise to be assertion of that right by action at an earlier
made in writing to the carrier within twenty- period than would be necessary to defeat it
four hours from the time of delivery. Claims through the operation of the ordinary statute
for nondelivery or shipment must be of limitations. But the limitation must be
presented in writing to the carrier within reasonable, and if the period of time
thirty days from the date of accrual. Suits specified is such that under the facts of the
based upon claims arising from shortage, particular case the shipper could not with
damage, or nondelivery of shipment shall be reasonable diligence be enabled to bring suit
instituted within sixty days from date of before it expired, the attempted limitation is
accrual of the right of action. Failure to make void. Thus, a provision that suit must be
claims or to institute judicial proceedings as brought within thirty days after the loss or
herein provided shall constitute a waiver of damage occurred has been held
the claim or right of action. unreasonable where it appeared that the
transit might reasonably consume the whole
The goods in question were shipped from Manila on of that time. A period of forty days has on
October 25, 1922, to be delivered to Salomon the other hand been held to be a reasonable
Sharuff in Surigao, Plaintiff's original complaint was limitation.
filed on April 17, 1923, or a little less than six
months after the shipment was made. Upon that question the trial court said:

Appellants cite and rely upon section 505 C, Corpus Assuming, however, that the above quoted
Juris, vol. 10, pp. 343-344, which is as follows: conditions came to the knowledge of the
plaintiff, the Supreme court of the Philippine
Contractual Limitations As to Time For Islands, has held that such stipulations in the
Bringing Suit. 1. In General. In the bill of lading are not reasonable, and
absence of any express statutory prohibition, therefore, do not bar an action.
according to the great weight of authority, it
is competent for the parties to a contract of And it also said:
shipment to agree on a limitation of time
shorter than the statutory limitation, within
Granting, without deciding, that said
which action for breach of the contract shall
conditions appearing on the back of the
be brought, and such a limitation will be
originals might have legal effect, the court is
enforced if reasonable, although there is
of the opinion that in view of the fact that
some authority to the contrary. Nevertheless
said conditions are not printed on the
to be effective such limitation must be
triplicate copies which were delivered to the
reasonable; and it has been said that the
plaintiff, such conditions are not binding
only limitations as to the validity of such
upon the plaintiff.
contract are that they must be reasonable,
and that there must be prompt action on the
part of the carrier in denying its liability, to It appears that the plaintiff made its claim of loss
the end that the shipper may be duly within seven days after receipt of information that
apprised of the fact that suit will be 160 cases only were delivered. Its second claim was
necessary. Stipulations of this character are made on December 29, 1922, in which it said that, if
not opposed to public policy, and do not the claim was not paid before January 3, 1923, it
operate as a restriction on the common-law would be placed in the hands of attorneys for
liability of the carrier. collection. On January 3, 1923, Gabino Barretto &
Company advised the plaintiff that it would not pay
the claim, and on April seventeenth plaintiff filed its
Also Ruling Case Law, volume 4, pp. 798-799, which
complaint.
reads:

In the case of Aguinaldo vs. Daza (G. R. No.

256. Stipulations Limiting Time for Bringing
25961), 1 in which the printed conditions on the bill
Suit. Similar in character to the
of lading were identical with those in the instant
stipulations just considered prescribing a
case, the action was not commenced for more than
certain time within which notice of loss must
year after the delivery of the goods by the plaintiff
be given are the provisions frequently met
and the receipt of the bill of lading, and it was there There was no fraud or concealment in the shipment
held that: in question. Clause 12 above quoted places a limit of
P300 "for any single package of silk." The evidence
We are of the opinion that, having regard to shows that 164 "cases" were shipped, and that the
the situation involved in this shipment, and value of each case was very near P2,500. In this
the slowness of communication between situation, the limit of defendants' liability for each
Manila and Catbalogan, the contractual case of silk "for loss or damage from any cause or
limitation stated in this bill of lading with for any reason" would put it in the power of the
respect to the time for presentation of the defendants to have taken the whole cargo of 164
written claim was insufficient. The same cases of silk at a valuation of P300 for each case, or
considerations are necessarily decisive with less than one-eight of its actual value. If that rule of
respect to the time required for the law should be sustained, no silk would ever be
institution of judicial action. It results that shipped from one island to another in the
the stipulations relied upon by the Philippines. Such a limitation of value is
defendant-appellee constitute no obstacle to unconscionable and void as against public policy.
the maintenance of the present action.
Corpus Juris, volume 10, p. 154, says:
All things considered, we are clearly of the opinion
that the action was brought with a "reasonable time" PAR. 194. 6. Reasonable of Limitation.
as those words are specified and defined in the The validity of stipulations limiting the
authorities cited. It is true that both the plaintiff and carriers liability is to be determined by their
the defendants are residents of the City of Manila, reasonableness and their conformity to the
but it is also true that Surigao where the goods in sound public policy, in accordance with which
question were to be delivered is one of the most the obligations of the carrier to the public are
distant places from Manila in the Philippine Islands. settled. It cannot lawfully stipulate for
In the very nature of things, plaintiff would not want exemption from liability, unless such
to commence its action until such time as it had exemption is just and reasonable, and unless
made a full and careful investigation of all of the the contract is freely and fairly made. No
material facts and even the law of the case, so as to contractual limitation is reasonable which is
determine whether or not defendants were liable for subversive of public policy.
its loss.
PAR. 195. 7. What Limitations of Liability
In its third assignment of error, appellants rely on Permissible. a.
clause 12 of the bill of lading, which is as follows: Negligence (1) Rule in America (a) In
Absence of Organic or Statutory Provisions
It is expressly understood that carrier shall Regulating Subject aa. Majority Rule. In
not be liable for loss or damage from any the absence of statute, it is settled by the
cause or for any reason to an amount weight of authority in the United States, that
exceeding three hundred pesos (P300) whatever limitations against its common-law
Philippine currency for any single package of liability are permissible to a carrier, it cannot
silk or other valuable cargo, nor for an limit its liability for injury to or loss of goods
amount exceeding one hundred pesos shipped, where such injury or loss is caused
(P100) Philippine currency for any single by its own negligence. This is the common-
package of other cargo, unless the value and law doctrine and it makes no difference that
contents of such packages are correctly there is no statutory prohibition against
declared in this bill of lading at the time of contracts of this character.
shipment and freight paid in accord with the
actual measurement or weight of the cargo PAR. 196. bb. Considerations on Which Rule
shipped. Based. The rule, it is said, rests on
considerations of public policy. The
That condition is printed on the back of the bill of undertaking is to carry the goods, and to
lading. relieve the shipper from all liability for loss or
damage arising from negligence in
performing its contract is to ignore the
In disposing of that question, the lower court points
contract itself. The natural effect of a
out that the conditions in question "are not printed
limitation of liability against negligence is to
on the triplicate copies which were delivered to the
induce want of care on the part of the carrier
plaintiff," and that by reason thereof they "are not
in the performance of its duty. The shipper
binding upon the plaintiff." The clause in question
and the common carrier are not on equal
provides that the carrier shall not be liable for loss
terms; the shipper must send his freight by
or damage from any cause or for any reason to an
the common carrier, or not at all; he is
amount in excess of P300 "for any single package of
therefore entirely at the mercy of the carrier,
silk or other valuable cargo."
unless protected by the higher power of the
law against being forced into contracts
The ship in question was a common carrier and, as limiting the carrier's liability. Such contracts
such, must have been operated as a public utility. It are wanting in the element of voluntary
is a matter of common knowledge that large assent.
quantities of silk are imported in the Philippine
Islands, and that after being imported, they are sold
PAR. 197. cc. Application and Extent of
by the merchants in Manila and other large
Rule (aa) Negligence of Servants. The
seaports, and then shipped to different points and
rule prohibiting limitation of liability for
places in the Islands. Hence, there is nothing
negligence is often stated as a prohibition of
unusual about the shipment of silk. In truth and in
any contract relieving the carrier from loss or
fact, it is a matter of usual and ordinary business.
 damage caused by its own negligence or
misfeasance, or that of its servants; and it
has been specifically decided in many cases
that no contract limitation will relieve the
carrier from responsibility for the negligence,
unskillfulness, or carelessness of its
employees.

Based upon the findings of fact of the trial court

which are sustained by the evidence, the plaintiff
delivered to the defendants 164 cases of silk
consigned and to be delivered by the defendants to
Salomon Sharuff in Surigao. Four of such cases were
never delivered, and the evidence shows that their
value is the alleged in the complaint.

There is no merit in the appeal. The judgment of the

lower court is affirmed, with costs.

Avancea, C.J., Street, Malcolm, Villamor, Ostrand

and Villa-Real, JJ., concur.