GR L 2826; (June, 1951) (Digest)
G.R. No. L-2826 June 11, 1951
ALFREDO N. CRUZ, plaintiff-appellant, vs. JOSE M. VALERO and LUZON and LUZON SUGAR COMPANY, defendants-appellees.
FACTS
Plaintiff-appellant Alfredo N. Cruz was a sugar cane planter adhered to defendant-appellee Luzon Sugar Company, a sugar central. He had deposited various quantities of domestic centrifugal sugar (totaling 1,081.79 piculs) and molasses (1,341 gallons) in the central’s warehouse in Calumpit, Bulacan, which the central was obligated to deliver on demand. Cruz filed an action to recover these goods or their value, alleging that on December 26-27, 1941, the sugar company, through its President and General Manager Jose M. Valero, had disposed of his stored sugar without his knowledge and consent, replacing it with sugar from Pampanga Sugar Development Company (Pasudeco). He claimed that when he demanded withdrawal on December 28, the central could not deliver his Luzon Sugar Company sugar. The defendants contended that on December 28, 1941, the central compound was bombed by Japanese airplanes, damaging the warehouse. Subsequently, from January 1942, the Imperial Japanese Army occupied the compound, looted the sugar, took some for army use, and transported the remainder to Northern Luzon, rendering delivery impossible. They argued the loss was due to a fortuitous event (war). The trial court dismissed the complaint, ruling the loss was due to force majeure.
ISSUE
Whether the defendants (Luzon Sugar Company and Jose M. Valero) are liable for the loss of the plaintiff’s sugar and molasses, or whether such loss was due to a fortuitous event exempting them from liability.
RULING
The Supreme Court AFFIRMED the trial court’s judgment, holding the defendants not liable. The loss was due to a fortuitous event (force majeure).
The Court found the preponderance of evidence established that, as of December 28, 1941, there was sufficient sugar in the Luzon Sugar Company’s warehouse to cover the plaintiff’s deposits. The plaintiff’s evidence (including the testimony of Petra Cristobal and a disputed letter Exhibit G-1) to prove the sugar had been disposed of before the bombing was deemed unreliable and contradicted by the defendants’ witnesses. The Court credited the testimony of the central’s chemist, Ciriaco B. Serrano, corroborated by other witnesses, that the compound was bombed on December 28, 1941, occupied by the Japanese Army from January 1 to February 20, 1942, and the sugar was looted or taken by the army. Since the loss was caused by war, a fortuitous event, the depository (Luzon Sugar Company) was not responsible. The claim for the value of tires and tubes was also dismissed as they were taken by the Japanese Military Administration.