A. MAGSAYSAY, INC. v ANASTACIO AGAN
It is
January 31, 1955 | Ponente
A. Magsaysay, Inc. Plaintiff-appellee vs , Anastacio Agan, defendant-
appellant
DOCTRINE:
It is the deliverance from an immediate, impending peril, by a common
sacrifice that constitutes the essence of general average (hence everyone
contributes). It is the safety of the property and not of the voyage which
constitutes the true foundation of general average
FACTS:
● SS San Antonio is a vessel owned by A. Magsaysay (plaintiff) bound
for Basco, Batanes via Aparri, Cagayan with cargo belonging to
different shippers, including defendant, Agan.
○ In the port in Aparri, the vessel run aground (the boat was
stuck in the sand; it couldn’t float)
○ A. Magsaysay hired Luzon Stevedoring Co., to refloat it
● All cargo owners, except Argan, made a deposit or signed a bond
to answer for their contribution to the average.
● A. Magsaysay filed a claim to compel Argan to contribute his share
to the general average (P841.40)
○ Argan denied liability saying that the expenses incurred did
not constitute general average
● REASON BEING STRANDED: Accidental; Sudden shift of the sandars
at the mouth of the river which the port pilot did not anticipate
RTC: Argan is liable for the claim by A. Magsaysay. He should pay his share.
● Argan appealed to the SC
ISSUE/S:
(1) WON the expenses incurred in refloating should be considered a
general average, thus shared by cargo owners, obliging Argan to
contribute? - NO, it is not and he is not obliged.
HELD:
“Magsaysay has not made out a case for general average, with the result
that its claim for contribution against the Argan cannot be granted”
(1) LAW ON AVERAGES is contained in Code of Commerce.
classified into:
(a) Simple or Particular
● All expenses and damages caused to the vessel or
cargo which have not inured to the common
benefit
● To be borne only by owner of the property which
gave rise to the same
(b) General or Gross
● All damages and expenses which are deliberately
caused in order to save the vessel, its cargo or both
as the same time from a real and known risk.
● Being for common benefit, to be borne by owners
of the articles saved
(2) Court then looked at general average as a legal concept; It has the
ff requisites:
(a) A certain and imminent danger that is common to both
the ship and the cargo, arising from accidents of the sea,
dispositions of authority, or faults of men; excludes
measures undertaken against a distant peril - NONE
(i) NOT to save vessel and cargo from common
danger; vessel ran aground in fine weather inside a
port in a place described as “very shallow”
(ii) It might’ve been destroyed if left alone, but that is
DISTANT PERIL
(b) For common safety, part of vessel or cargo or both is
sacrificed deliberately (same as above) - NONE
(i) Cargo could’ve been unloaded if needed, without
need for expensive salvage operation
(c) Expenses or damage saves the vessel and cargo - NONE
(i) The refloating was done, to enable ship to “proceed
to its port of destination.”
(ii) Salvaged; BUT sacrifice was for benefit of voyage
(not cargo), the cargo owners are not bound to
contribute to salvation expenses
(d) Expenses or damage incurred after proper legal steps -
NOT PROVED