G.R. No. 18957 ; January 16, 1923
THE GOVERNMENT OF THE PHILIPPINE ISLANDS, plaintiff-appellee, vs. PHILIPPINE STEAMSHIP CO., INC., and FERNANDEZ HERMANOS, defendants. PHILIPPINE STEAMSHIP CO., INC., appellant.

FACTS

On February 11, 1920, a collision occurred between the steamer Antipolo (owned by Philippine Steamship Co.) and the vessel Isabel, resulting in the sinking of the Isabel and the total loss of its cargo, which included 911 sacks of rice belonging to the Government. The collision happened near the entrance of Manila Bay. Both vessels saw each other’s lights when about 1.5 to 2 miles apart. The mate of the Antipolo, upon realizing the danger, correctly turned his helm hard to starboard. However, the mate of the Isabel, likely exhausted from continuous duty, incorrectly turned his helm hard to port, veering his vessel into the path of the Antipolo. The trial court found both vessels at fault: the Antipolo for allowing dangerous proximity to develop in a wide navigable sea, and the Isabel for its incorrect and incompetent maneuver at the critical moment.

ISSUE

Whether the owner of the Antipolo (Philippine Steamship Co.) is liable for the loss of the Government’s cargo aboard the Isabel, given that both vessels were found to be at fault.

RULING

Yes. The Supreme Court affirmed the trial court’s judgment. Applying Article 827 of the Code of Commerce, when both vessels are to blame for a collision, they shall be solidarily responsible for the damage occasioned to their cargoes. Since the Isabel was a total loss and could not bear its share of the liability, the entire burden fell upon the owner of the Antipolo, the Philippine Steamship Company, Inc. The Court clarified that Article 827 applies not only when both vessels are actually blameworthy, but also, under Article 828, when it is obvious one was at fault but the proof does not show which. In this case, both were clearly at fault.