GR 96453; (August, 1999) (Digest)
G.R. No. 96453, August 4, 1999
NATIONAL FOOD AUTHORITY, ROSELINDA GERALDEZ, RAMON SARGAN and APELINA A. YAP, petitioners, vs. THE HON. COURT OF APPEALS AND HONGFIL SHIPPING CORPORATION, respondents.
FACTS
The National Food Authority (NFA), through its officers, entered into a “Letter of Agreement for Vessel/Barge Hire” with Hongfil Shipping Corporation (Hongfil) for the shipment of 200,000 bags, more or less, of corn grains from Cagayan de Oro City to Manila at a freight rate of P7.30 per bag. The agreement stipulated “Demurrage/Dispatch: None.” Hongfil’s vessel arrived at the loading port on February 6, 1987. Loading commenced on February 10, 1987, and was completed on March 4, 1987, taking 21 days due to a strike by arrastre workers. The vessel arrived at the discharging port in Manila on March 11, 1987. Unloading commenced on March 15, 1987, and was completed on April 7, 1987, taking 20 days due to unavailability of berthing space. Only 166,798 bags were unloaded. NFA paid the freight for the bags actually unloaded but refused Hongfil’s subsequent claim for deadfreight (for the unloaded cargo) and demurrage (for the delays). Hongfil filed an action for recovery. The Regional Trial Court ruled in favor of Hongfil, ordering NFA to pay deadfreight and demurrage. The Court of Appeals affirmed the decision but deleted the award of attorney’s fees.
ISSUE
1. Whether or not petitioners can be held liable for deadfreight.
2. Whether or not petitioners can be held liable for demurrage.
3. Whether or not personal civil liability may attach to the officers of NFA.
RULING
1. Yes, petitioners (NFA) are liable for deadfreight. The charter party was for the transport of 200,000 bags of corn grains. The phrase “more or less” is a term of safety covering slight inaccuracies and does not negate the contracted quantity. Since only 166,798 bags were loaded and unloaded, NFA is liable for the deadfreight on the 33,201 bags not shipped, pursuant to Article 680 of the Code of Commerce. The freight rate of P7.30 per bag for 200,000 bags, as stipulated, applies.
2. No, petitioners are not liable for demurrage. The “Letter of Agreement for Vessel/Barge Hire” expressly stipulated “Demurrage/Dispatch: None.” This clear stipulation negates any claim for demurrage arising from delays in loading or unloading. The delays were caused by a strike and unavailability of berthing space, which were not attributable to the fault or negligence of NFA.
3. No, personal civil liability does not attach to the officers of NFA (Roselinda Geraldez, Ramon Sargan, and Apelina A. Yap). They entered into the contract in their official capacity as agents of the NFA, a government corporate entity. There is no evidence that they acted with malice or bad faith. Therefore, they are absolved of personal liability.
The Supreme Court AFFIRMED the Court of Appeals decision with MODIFICATION. Petitioner NFA is ordered to pay Hongfil Shipping Corporation the amount of P242,367.30 for deadfreight. The award of P1,152,687.50 for demurrage is deleted. Petitioners Roselinda Geraldez, Ramon Sargan and Apelina A. Yap are absolved of any liability.