G.R. No. L-19609 April 29, 1966
JOSE NEGRE, plaintiff-appellant, vs. CABAHUG SHIPPING & CO., defendant-appellee.

FACTS

On August 14, 1961, Jose Negre filed a complaint in the Court of First Instance of Cebu against Cabahug Shipping & Co., a common carrier engaged in transporting persons and goods within Philippine waters. Negre sought to recover P3,774.90, representing the value of his cargo of dried fish loaded onto the carrier’s vessel, the JACOBA, at the port of Santa Fe. The cargo was totally destroyed while the vessel was still docked at the wharf due to the alleged gross negligence of the vessel’s officers and crew. Negre also sought P500.00 in attorney’s fees. The defendant’s answer admitted liability but only up to the amount of P3,733.78. The plaintiff moved for judgment on the pleadings. In response, the defendant moved to dismiss the case on the ground that the amount of the claim fell outside the court’s jurisdiction. The lower court granted the motion and dismissed the complaint for lack of jurisdiction, without prejudice to filing the action in the corresponding municipal court.

ISSUE

Whether the Court of First Instance has jurisdiction over the plaintiff’s action for damages arising from the loss of cargo, considering the amount claimed.

RULING

Yes. The Supreme Court reversed the order of dismissal. The complaint alleged a contract for the transportation of goods by water (a maritime contract) and a breach thereof through fault and negligence resulting in the total loss of the cargo while on the docked vessel. The Court held that the action was one in admiralty and maritime jurisdiction. Pursuant to Section 44 of the Judiciary Act, as amended, such actions fall within the exclusive original jurisdiction of courts of first instance, irrespective of the amount or value of the goods involved. The case was remanded to the court of origin for proper proceedings.