GR 3086; (February, 1907) (Digest)
G.R. No. 3086
MITSUI BUSSAN KAISHA, plaintiff‑appellant,
vs.
THE GOVERNMENT OF THE PHILIPPINE ISLANDS, defendant‑appellee
FACTS
1. Mitsui Bussan Kaisha, a Japanese coal‑mining company, offered to supply 10,000 tons of coal to the Insular Government’s Ice Plant at $5.95 per ton, with delivery to begin 15 June 1903. The Government accepted the offer on 30 May 1903, stipulating that coal be piled in the plant’s yard, inspected and weighed under the superintendent’s supervision.
2. Coal deliveries from 12 June 1903 to 1 April 1904 totaled 9,384 tons 457 lb according to the Government’s weights. By mutual agreement the amount was reduced to 9,024.90 tons and fully paid.
3. A subsequent delivery between 29 April and 12 May 1904 was recorded by the Government as 2,247 tons 5 lb. The Government refused payment, alleging that earlier weighings were erroneous and that it had overpaid for coal it never received.
4. The Government’s counterclaim asserted that total coal actually delivered from June 1903 to May 1904 was 7,800 tons3,400 tons less than recordedand that it had overpaid $3,408.90.
5. The trial court found the April‑May 1904 delivery to be only 2,155 tons 2 lb, valued at $12,828.11, unpaid by the Government, but also held that the Government had overpaid for earlier deliveries by $3,269. After set‑off, judgment for the plaintiff was $9,559.11 with interest.
ISSUE
Whether the Government proved, with reasonable certainty, that specific weighing errors were made by its checkers, justifying a reduction of its payment obligation and entitlement to a counterclaim for overpayment.
RULING
The Supreme Court held that the Government bore the burden of proving, by competent and satisfactory evidence, the existence and precise magnitude of any weighing mistakes. The Government presented only indirect evidence (discrepancies in bills of lading and speculative estimates) and no direct proof that the checkers’ weights were erroneous. Consequently, the Court found no satisfactory basis to sustain the counterclaim or the reduction of the plaintiff’s claim. The judgment of the trial court was modified in favor of Mitsui Bussan Kaisha for $13,369.65 (U.S.), equivalent to P26,739.30, with interest at 6 % per annum from 31 January 1905 and costs of the first instance. No further costs were awarded.