Carlos de Lizardi, administrator of Lim Jocsing estate filed acomplaint against FM Yaptico who is the owner of the steamer Bais where Jocsing and his abaca was on board bound to Cebu when the steamer was wrecked.

Due to the loss incurred, FM Yaptico, being the owner of the steamer and of the goods loaded, collected the insurance amounting to P15,000 which Lizardi as the administrator of Jocsing’s estate is after to as he alleged that it belonged to Jocsing.

During the course of the proceedings, it was found out that Jocsing and Yaptico entered into a contract that the abaca that was loaded into the steamer became the property of Yaptico since the latter already paid the goods to Jocsing even before it was loaded to the steamer.

  1. Yaptico opened for Jocsing its books an account current
  2. Yaptico extended to him a credit of P15000 to be employed in the purchase of abaca and copra.
  3. Jocsing on the other hand, guaranteed the said credit with the business he had established.
  4. That the value thereof should be credited on Yaptico’s account and Jocsing obligated himself to ship the articles only through Yaptico’s steamers.
  5. Jocsing shall bear the freight charges, warehouse charges, fire insurane and other expenses upon its delivery and storage in Cebu.
  6. It was clearly stipulated in the agreement that whenever Yaptico send a steamer to Jocsing to get abaca and  copra, Yaptico  would  also  furnish  Jocsing  the  money  and  merchandise approximating the amount of the abaca and copra delivered.
  7. The 5th paragraph literally states that the “abaca and copra that Jocsing may deliver to be receivedon board  by  his  agent  shall  be  for  the  account  of  Yaptico,  except  in  case  that  Jocsing  shouldotherwise expressly provide in writing.

That it was Yaptico who insured the shipment of the abaca under his own name and the one who paid the

corresponding premium. Therefore, he shall have all the right to claim the insurance in his name. Lizardi to prove his claim has provided all the documents to show that Jocsing maintains the ownership of the articles since it was Jocsing who bears all the expenses of storage in Cebu and that Yaptico has been constantly sending copy of invoices to Jocsing as to the sale of abaca and copra.

Yaptico, on the other hand, maintained that by the clear and explicit terms in the 5th paragraph of the contract, it is understood that without any effort whatsoever that all the abaca shipped and delivered in

 board his steamers became his property, unless Jocsing expressly provided otherwise in writing.


Whether or not Jocsing maintained the ownership of the articles shipped on board and thereby is entitled to the insurance claim?



The fifth paragraph of the contract sets forth in a clear and positive manner. The intention of the parties from the said clause was that the abaca and the copra, which should be delivered and received on board the defendant’s steamer, would be for the account of Yaptico. The articles became his property not only by the express stipulation in the contract but because whenever Jocsing had his abaca or copra forwarded to the steamer, Yaptico sent him money and goods for a value equal to that of the said merchandise. Since the merchandise had been paid by Yaptico, he now bears the risk because in case of loss, Yaptico would be the only one prejudiced as the owner thereof and he has all the right to protect his interest by insuring it as he did. The value of the merchandise delivered on board the steamer became the reimbursement or payment of the sum advanced by Yaptico to Jocsing. There it is only just that the Yaptico, as owner of the money or of the value of the shipment should be regarded as the owner thereof as consequently of the insurance, the premium on which he paid.

Digest Credit: Mark Alfed Santillan


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