VALENZUELA HARDWOOD & INDUSTRIAL SUPPLY, INC. vs CA et al.

GR No. 102316; June 30, 1997

FACTS
Petitioner entered into an agreement with the Seven Brothers Shipping Corporation. The latter
was to deliver the former’s lauan round logs using its vessel, M/V Seven Ambassador.
According to their charter, the shipping corporation should not be held liable for loss, split, or
breakages and any kind of damage to the cargo. The vessel sank, resulting in the loss of logs.
Valenzuela then contended that the stipulation in the charter regarding the non-liability of the
respondents is void for being contrary to public policy in relation to Article 1745 of the Civil
Code.

ISSUE
Whether or not Valenzuela Hardwood waive its rights for obtaining payment for damages when
it entered into the charter?

RULING
Yes. The nature of the job entails carrying a special cargo, making the common carrier a private
carrier. In this contract, the parties may validly stipulate that the responsibility of the cargo rests
solely on the charterer even if the damage was caused by the negligence of the ship captain. The
Civil Code provisions on common carrier are not applicable in this case. In addition, while
Article 6 of the Civil Code provides that rights may be waived unless the waiver is contrary to
public policy, in this case, the job is not imbued with public considerations since the contract
affects only the petitioner and respondent.