GR L 27070; (Febuary, 1982) (Digest)
G.R. No. L-27070-71 February 16, 1982
JOSEPH COCHINGYAN, JR., petitioner, vs. HON. GAUDENCIO CLORIBEL, Presiding Judge of Branch VI, Court of First Instance of Manila, et al., respondents.
FACTS
This case involves reparations goods imported for the benefit of WWII veterans. Conflicting claims over these goods led to a Supreme Court decision in 1977, which created a committee to sell the goods. The committee accepted the highest bid from Luis Cua, which this Court approved. Cua complied by securing an irrevocable letter of credit and received a portion of the goods.
However, the Bureau of Customs refused to release the remaining goods unless substantial storage charges were paid. The committee contested this, and the Office of the President eventually ruled that the goods were not subject to such charges. Due to the protracted delay, Cua informed the committee he was no longer interested in accepting the remaining goods, citing depreciation in value and financial losses.
ISSUE
The primary issue is whether the committee should be authorized to sell the undelivered reparations goods to third parties and whether the awardee, Luis Cua, should be held liable for any balance from his bid price given the non-delivery.
RULING
The Supreme Court granted the committee’s motion for authority to sell the remaining goods to third parties. The legal logic centers on the principles of contractual obligation and the doctrine of fortuitous event or force majeure as it relates to reciprocal obligations. Both Cua and the committee were found not guilty of delay (mora). Cua was ready to perform his obligation by providing payment assurance. The committee was likewise not at fault; it acted diligently by seeking the release of the goods and elevating the dispute to the President. The impediment—the Bureau of Customs’ refusal to release the goods without payment—was an event beyond the committee’s control that prevented the fulfillment of its obligation to deliver.
Consequently, it would be unjust to hold Cua liable for the balance of his bid price for goods he never received. The Court ordered the proceeds from the new sales to be delivered to the entitled veterans’ associations. The case was remanded to the trial court to determine the exact volume of goods already delivered to Cua and to oversee the final execution of the judgment, ensuring proper distribution of the proceeds.