Jarque v Smith G.R. No. L-32986 J. Ostra !

"a#ts$

November 11, 1930

%he &'ai ti(( )as the o) er o( the motorboat Pandan a ! he'! a mari e i sura #e &o'i#* (or the sum o( +,-,000 o the boat, the &o'i#* bei . issue! b* the Natio a' / io "ire 0 sura #e 1om&a * a ! a##or!i . to the &rovisio s o( a 2ri!er2 atta#he! to the &o'i#*, the i sura #e )as a.ai st the 2abso'ute tota' 'oss o( the vesse' o '*.2 %he shi& ra i to ver* heav* sea o(( the 0s'a !s o( %i#'i , a ! it be#ame e#essar* to 3ettiso a &ortio o( the #ar.o. 4s a resu't o( the 3ettiso , the Natio a' / io "ire 0 sura #e 1om&a * )as assesse! i the sum o( +2,610.86 as its #o tributio to the .e era' avera.e. %he i sura #e #om&a *, i sisti . that its ob'i.atio !i! ot e5te ! be*o ! the i sura #e o( the 2abso'ute tota' 'oss o( the vesse' o '*, a ! to &a* &ro&ortio ate sa'va.e o( the !e#'are! va'ue,2 re(use! to #o tribute to the sett'eme t o( the .e era' avera.e. %he &rese t a#tio )as thereu&o i stitute!, a ! a(ter tria' the #ourt be'o) re !ere! 3u!.me t i (avor o( the &'ai ti(( a ! or!ere! the #om&a * to &a* the &'ai ti(( the sum o( +2,610.86 as its &art o( the i !em it* %he i sura #e #om&a * a&&ea'e! to this #ourt. 0ssues$ 1. 6ON the 'o)er #ourt erre! i !isre.ar!i . the t*&e)ritte #'ause e !orse! u&o the &o'i#*, 75hibit 4, e5&ress'* 'imiti . i surer8s 'iabi'it* thereu !er o( the tota' 'oss o( the )oo!e vesse' Pandana ! to &ro&ortio ate sa'va.e #har.es 2. 6ON the 'o)er #ourt erre! i #o #'u!i . that !e(e !a t a ! a&&e''a t, Natio a' / io "ire 0 sura #e 1om&a * is 'iab'e to #o tribute to the .e era' avera.e resu'ti . (rom the 3ettiso o( a &art o( sai! vesse'8s #ar.o. 9e'!$ No to both. +etitio !ismisse!. Ratio$ 1. O e o( the #'auses o( the !o#ume t ori.i a''* rea! as (o''o)s$ %ou#hi . the 4!ve tures a ! +eri's )hi#h the sai! Natio a' / io "ire 0 sura #e 1om&a * is #o te t to bear, a ! to ta:e u&o them i this ;o*a.e< the* are o( the Seas, =e -o(-6ar, "ire, +irates, Rovers, %hieves, Jettiso , Letters o( =art a ! 1ou termart, Sur&risa's, a ! %a:i .s at Sea. 4rrest, Restrai t a ! >etai me ts, o( a'' ?i .s +ri #es a ! +eo&'e o( )hat Natio , 1o !itio or @ua'it* so ever< Aarratr* o( the =aster a ! =ari es, a ! o( a'' other +eri's, Losses a ! =is(ortu es, that have or sha'' #ome to the 9urt, >etrime t, or >ama.e o( the sai! ;esse' or a * &art thereo(< a ! i #ase o( a * Loss or =is(ortu es, it sha'' be 'a)(u' (or the 4ssure!, his or their "a#tors, Serva ts, or assi. s, to sue, 'abour a ! trave' (or, i a ! about the >e(e se. Sa(e.uar!, a ! re#over* o( the sai! ;esse' or a * 1har.es )hereo( the

e is ot base! o the e5&ress terms o( the &o'i#*. the shi& must a'so have bee i . 0( o 3ettiso ha! ta:e .er. the (ormer #o tro's the 'atter. 8-9. %he arti#'e is ma !ator* i its terms.sai! 1om&a *.e.ross avera. the t*&e )ritte &rovisio s therei set (orth are the (o''o)i . %he u !er)riters o( the vesse'. a ! o( the #ar. &ossib'* su((i#ie t to #ause its abso'ute 'oss.e i so (ar as is require! o( ea#h o e o( these ob3e#ts res&e#tive'*. to a ! (ormi . be 'imite! to 2abso'ute 'oss o( the vesse' o '*.. Se#tio 291 o( the 1o!e o( 1ivi' +ro#e!ure &rovi!es that 2)he a i strume t #o sists &art'* o( )ritte )or!s a ! &art'* o( a &ri te! (orm a ! the t)o are i #o siste t. o( the (rei. a ! there #a be o questio that as (ar as a * i #o siste #* e5ists.o therei at the time o( the o##urre #e o( the .7SS7L ONLC. amo . 0 the &rese t #ase it is ot !is&ute! that the shi& )as i .e era' avera.reat !a . a ! the i surers. are bou ! to #o tribute to the i !em it* o( the .ht. &art o( the Natio a' / io "ire 0 sura #e 1o.irtue as the surest 6riti .rave &eri' a ! that the 3ettiso o( &art o( the #ar. the 'iabi'it* o( the !e(e !a t i sura #e #om&a * o its &o'i#* )ou'!. but rest u&o the theor* that (rom the re'atio o( the &arties a ! (or their be e(it. 2. 4tta#he! to the &o'i#* over a ! above the sai! #'ause is a 2ri!er2 #o tai i . a #e e5ists bet)ee )ritte a ! &ri te! &ortio s o( a &o'i#*.e era' avera. )or!s$ 24tta#hi . the )ritte &ortio &revai's.2 0t is a )e'' sett'e! ru'e that i #ase re&u.o )as i &eri' to the e5te t o( #a'' (or .o. a##or!i .ht or (or the #ar.e era' avera. )hi#h a&&ears i #a&ita'iBe! t*&e the (o''o)i . as other &erso s )ho have a i terest i the vesse'.2 9ere the 'iabi'it* (or #o tributio i . 0t sim&'* &'a#es the i surer o the same (ooti . a ! to &a* &ro&ortio ate sa'va.e era' avera.o sha'' be ob'i.o o '*. &erha&s.e. t*&e)ritte &rovisio s. 4N> %O +4C +RO+OR%0ON4%7 S4L. to the rate a ! qua tit* o( the sum herei assure! sha'' be o( as mu#h (or#e a ! . or +o'i#* o( 0 sura #e ma!e i LON>ON.o )as e#essar*.e o( the !e#'are! va'ue.2 Aut the &o'i#* )as e5e#ute! i this 3uris!i#tio a ! 2)arra te! to tra!e )ithi the )aters o( the +hi'i&&i e 4r#hi&e'a. 0 the abse #e o( &ositive 'e.e! to &a* (or the i !em it* o( the .o. %he 3ettiso )as there(ore as mu#h to the be e(it o( the u !er)riter as to the o) er o( the #ar. a quasi #o tra#t is im&'ie! b* 'a). 4rti#'e 8-9 o( the 1o!e o( 1ommer#e is sti'' i (or#e a ! rea!s as (o''o)s$ 4R%. 10--. #'ause$ 4G40NS% %97 4ASOL/%7 %O%4L LOSS O" %97 .4G7 194RG7S O" %97 >71L4R7> .is'atio to the #o trar*. or the #ar. )hether (or the vesse' or (or the (rei. 9u'' +o'i#* No. the above-me tio e! t*&e! 2ri!er2 &revai's over the &ri te! #'ause it #overs.4L/7. 4t the bottom o( the same ri!er (o''o)i .e a ! )ho are #om&e''e! to #o tribute. 0( the #ar. )i'' #o tribute.

. the u !er)riter8s 'oss )ou'! have bee ma * times as 'ar.&'a#e a ! i( the shi& b* reaso thereo( ha! (ou !ere!.e as the #o tributio o) !ema !e!.