2. G.R. No.

L-42926 September 13, 1985

PEDRO VASQUEZ, SOLEDAD ORTEGA, CLETO B. BAGAIPO, AGUSTINA VIRTUDES, ROMEO VASQUEZ and
MAXIMINA CAINAY, petitioners,
vs.
THE COURT OF APPEALS and FILIPINAS PIONEER LINES, INC., respondents

G.R. No. 74811 September 30, 1988

Facts:
This case involves a claim for damages for the loss at sea of petitioners' respective children after the shipwreck of MV
Pioneer Cebu due to typhoon "Klaring" in May of 1966.
Respondent defended on the plea of force majeure and the extinction of its liability by the actual total loss of the vessel.
The trial court however decided in favour of the petitioners finding the defense of force majeure untenable there being proof that
the crew of the vessel were already aware of the typhoon brewing somewhere in the same general direction to which the vessel
was going and still proceeded with the voyage. Also, the vessel took a greater risk when it continued the voyage instead of seeking
shelter in Romblon until they reach the area where they were hit by the typhoon.
The appellate court, in contrary decided in favour of the respondents believing that the calamity was caused solely and
proximately by fortuitous event which not even extraordinary diligence of the highest degree could have guarded against; and that
there was no negligence on the part of the common carrier in the discharge of its duties.

Issue:
Whether or not the appellate court is correct in freeing the respondents from liability applying the defense of caso fortuito

Held:
The Supreme Court maintained the decision of the trial court finding that defense of caso fortuito. "To constitute a caso
fortuito that would exempt a person from responsibility, it is necessary that (1) the event must be independent of the human will;
(2) the occurrence must render it impossible for the debtor to fulfill the obligation in a normal manner; and that (3) the obligor
must be free of participation in, or aggravation of, the injury to the creditor." In the language of the law, the event must have been
impossible to foresee, or if it could be foreseen, must have been impossible to avoid. There must be an entire exclusion of human
agency from the cause of injury or loss.
While indeed, the typhoon was an inevitable occurrence, the crew failed to observe extraordinary diligence required of
them explicitly by law for the safety of the passengers transporter by them with due regard for and unnecessarily exposed the
vessel and passengers to the tragic mishap.
With respect to private respondent's submission that the total loss of the vessel extinguished its liability pursuant to Article
587 of the Code of Commerce, it does not apply in this case since under the limited liability rule the ship owner or agent maybe
held liable for reason of the death of its passengers.
Wherefore the appealed decision is reversed and the judgment of the trial court is reinstated.

MELENCIO-HERRERA, J.:

This litigation involves a claim for damages for the loss at sea of petitioners' respective children after the shipwreck of
MV Pioneer Cebu due to typhoon "Klaring" in May of 1966.

The factual antecedents, as summarized by the trial Court and adopted by respondent Court, and which we find
supported by the record, read as follows:

When the inter-island vessel MV "Pioneer Cebu" left the Port of Manila in the early morning of May 15,
1966 bound for Cebu, it had on board the spouses Alfonso Vasquez and Filipinas Bagaipo and a four-
year old boy, Mario Marlon Vasquez, among her passengers. The MV "Pioneer Cebu" encountered
typhoon "Klaring" and struck a reef on the southern part of Malapascua Island, located somewhere
north of the island of Cebu and subsequently sunk. The aforementioned passengers were unheard
from since then.

Plaintiffs Pedro Vasquez and Soledad Ortega are the parents of Alfonso Vasquez; plaintiffs Cleto
Bagaipo and Agustina Virtudes are the parents of Filipinas Bagaipo; and plaintiffs Romeo Vasquez and
Maxima Cainay are the parents of the child, Mario Marlon Vasquez. They seek the recovery of
damages due to the loss of Alfonso Vasquez, Filipinas Bagaipo and Mario Marlon Vasquez during said
voyage.

At the pre-trial, the defendant admitted its contract of carriage with Alfonso Vasquez, Filipinas Bagaipo
and Mario Marlon Vasquez, and the fact of the sinking of the MV "Pioneer Cebu". The issues of the

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 case were limited to the defenses alleged by the defendant that the sinking of the vessel was caused
by force majeure, and that the defendant's liability had been extinguished by the total loss of the
vessel.

The evidence on record as to the circumstances of the last voyage of the MV "Pioneer Cebu" came
mainly, if not exclusively, from the defendant. The MV "Pioneer Cebu" was owned and operated by the
defendant and used in the transportation of goods and passengers in the inter-island shipping.
Scheduled to leave the Port of Manila at 9:00 p.m. on May 14, 1966, it actually left port at 5:00 a.m. the
following day, May 15, 1966. It had a passenger capacity of three hundred twenty-two (322) including
the crew. It undertook the said voyage on a special permit issued by the Collector of Customs
inasmuch as, upon inspection, it was found to be without an emergency electrical power system. The
special permit authorized the vessel to carry only two hundred sixty (260) passengers due to the said
deficiency and for lack of safety devices for 322 passengers (Exh. 2). A headcount was made of the
passengers on board, resulting on the tallying of 168 adults and 20 minors, although the passengers
manifest only listed 106 passengers. It has been admitted, however, that the headcount is not reliable
inasmuch as it was only done by one man on board the vessel.

When the vessel left Manila, its officers were already aware of the typhoon Klaring building up
somewhere in Mindanao. There being no typhoon signals on the route from Manila to Cebu, and the
vessel having been cleared by the Customs authorities, the MV "Pioneer Cebu" left on its voyage to
Cebu despite the typhoon. When it reached Romblon Island, it was decided not to seek shelter thereat,
inasmuch as the weather condition was still good. After passing Romblon and while near Jintotolo
island, the barometer still indicated the existence of good weather condition continued until the vessel
approached Tanguingui island. Upon passing the latter island, however, the weather suddenly changed
and heavy rains felt Fearing that due to zero visibility, the vessel might hit Chocolate island group, the
captain ordered a reversal of the course so that the vessel could 'weather out' the typhoon by facing
the winds and the waves in the open. Unfortunately, at about noontime on May 16, 1966, the vessel
struck a reef near Malapascua island, sustained leaks and eventually sunk, bringing with her Captain
Floro Yap who was in command of the vessel.

Due to the loss of their children, petitioners sued for damages before the Court of First Instance of Manila (Civil Case
No. 67139). Respondent defended on the plea of force majeure, and the extinction of its liability by the actual total loss
of the vessel.

After proper proceedings, the trial Court awarded damages, thus:

WHEREFORE, judgment is hereby rendered ordering the defendant to pay:

(a) Plaintiffs Pedro Vasquez and Soledad Ortega the sums of P15,000.00 for the loss of earning
capacity of the deceased Alfonso Vasquez, P2,100.00 for support, and P10,000.00 for moral damages;

(b) Plaintiffs Cleto B. Bagaipo and Agustina Virtudes the sum of P17,000.00 for loss of earning capacity
of deceased Filipinas Bagaipo, and P10,000.00 for moral damages; and

(c) Plaintiffs Romeo Vasquez and Maximina Cainay the sum of P10,000.00 by way of moral damages
by reason of the death of Mario Marlon Vasquez.

On appeal, respondent Court reversed the aforementioned judgment and absolved private respondent from any and all
liability.

Hence, this Petition for Review on Certiorari, the basic issue being the liability for damages of private respondent for
the presumptive death of petitioners' children.

The trial Court found the defense of caso fortuito untenable due to various decisive factors, thus:

... It is an admitted fact that even before the vessel left on its last voyage, its officers and crew were
already aware of the typhoon brewing somewhere in the same general direction to which the vessel
was going. The crew of the vessel took a calculated risk when it proceeded despite the typhoon
advisory. This is quite evident from the fact that the officers of the vessel had to conduct conferences
amongst themselves to decide whether or not to proceed. The crew assumed a greater risk when,
instead of seeking shelter in Romblon and other islands the vessel passed en route, they decided to
take a change on the expected continuation of the good weather the vessel was encountering, and the
possibility that the typhoon would veer to some other directions. The eagerness of the crew of the

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 vessel to proceed on its voyage and to arrive at its destination is readily understandable. It is
undeniably lamentable, however, that they did so at the risk of the lives of the passengers on board.

Contrariwise, respondent Appellate Court believed that the calamity was caused solely and proximately by fortuitous
event which not even extraordinary diligence of the highest degree could have guarded against; and that there was no
negligence on the part of the common carrier in the discharge of its duties.

Upon the evidence and the applicable law, we sustain the trial Court. "To constitute a caso fortuito that would exempt a
person from responsibility, it is necessary that (1) the event must be independent of the human will; (2) the occurrence
must render it impossible for the debtor to fulfill the obligation in a normal manner; and that (3) the obligor must be free
of participation in, or aggravation of, the injury to the creditor." 1 In the language of the law, the event must have been
impossible to foresee, or if it could be foreseen, must have been impossible to avoid. 2 There must be an entire
exclusion of human agency from the cause of injury or loss. 3

Turning to this case, before they sailed from the port of Manila, the officers and crew were aware of typhoon "Klaring"
that was reported building up at 260 kms. east of Surigao. In fact, they had lashed all the cargo in the hold before
sailing in anticipation of strong winds and rough waters. 4 They proceeded on their way, as did other vessels that day.
Upon reaching Romblon, they received the weather report that the typhoon was 154 kms. east southeast of Tacloban
and was moving west northwest.5 Since they were still not within the radius of the typhoon and the weather was clear,
they deliberated and decided to proceed with the course. At Jintotolo Island, the typhoon was already reported to be
reaching the mainland of Samar. 6 They still decided to proceed noting that the weather was still "good" although,
according to the Chief Forecaster of the Weather Bureau, they were already within the typhoon zone. 7 At Tanguingui
Island, about 2:00 A.M. of May 16, 1966, the typhoon was in an area quite close to Catbalogan, placing Tanguingui
also within the typhoon zone. Despite knowledge of that fact, they again decided to proceed relying on the forecast
that the typhoon would weaken upon crossing the mainland of Samar. 8 After about half an hour of navigation towards
Chocolate Island, there was a sudden fall of the barometer accompanied by heavy downpour, big waves, and zero
visibility. The Captain of the vessel decided to reverse course and face the waves in the open sea but because the
visibility did not improve they were in total darkness and, as a consequence, the vessel ran aground a reef and sank
on May 16, 1966 around 12:45 P.M. near Malapascua Island somewhere north of the island of Cebu.

Under the circumstances, while, indeed, the typhoon was an inevitable occurrence, yet, having been kept posted on
the course of the typhoon by weather bulletins at intervals of six hours, the captain and crew were well aware of the
risk they were taking as they hopped from island to island from Romblon up to Tanguingui. They held frequent
conferences, and oblivious of the utmost diligence required of very cautious persons, 9 they decided to take a
calculated risk. In so doing, they failed to observe that extraordinary diligence required of them explicitly by law for the
safety of the passengers transported by them with due regard for an circumstances 10 and unnecessarily exposed the
vessel and passengers to the tragic mishap. They failed to overcome that presumption of fault or negligence that
arises in cases of death or injuries to passengers. 11

While the Board of Marine Inquiry, which investigated the disaster, exonerated the captain from any negligence, it was
because it had considered the question of negligence as "moot and academic," the captain having "lived up to the true
tradition of the profession." While we are bound by the Board's factual findings, we disagree with its conclusion since it
obviously had not taken into account the legal responsibility of a common carrier towards the safety of the passengers
involved.

With respect to private respondent's submission that the total loss of the vessel extinguished its liability pursuant to
Article 587 of the Code of Commerce12 as construed in Yangco vs. Laserna, 73 Phil. 330 [1941], suffice it to state that
even in the cited case, it was held that the liability of a shipowner is limited to the value of the vessel or to the
insurance thereon. Despite the total loss of the vessel therefore, its insurance answers for the damages that a
shipowner or agent may be held liable for by reason of the death of its passengers.

WHEREFORE, the appealed judgment is hereby REVERSED and the judgment of the then Court of First Instance of
Manila, Branch V, in Civil Case No. 67139, is hereby reinstated. No costs.

SO ORDERED.