DAMAGES CLAIMED BY Period Amount From SC Comment BEST EVIDENCE

COMPAÑIA MARITIMA of Loss whom

1 Freight for 74, 751 bags of fertilizer Jan. 1 to 29, 900.40 CPA - Jayme used the pronouns "we" and "our" but did not disclose the names of - Photostatic copies of
allegedly booked for shipment in August 31, Jayme's other "auditors" who assisted him ; independent accountant hired by the some manifests and
the company's vessels but loaded 1954 report company to make a "special investigation" of the consignees losses; truth is that bills of lading proving
in other vessels
Jayme was a "personal friend" of Teves, consignees branch manager at Ozamis that the company was
Statement A in Exh. A
City and later at Cagayan de Oro City ; accounting was his sideline or he not able to collect the
2 Lost freight on other shutout January 1 4,339.64
cargoes to August practiced accounting and stipulated freight on
Statement A in Exh. A 31, 1954, - Obviously, Jayme would be biased for the company the alleged shutout
3 Lost freight on shutout cargoes September 6,167.16 - Jayme allegedly based his computations on the records of the company which cargoes should have
booked for shipment in M. V. 2 to 7, were not produced in court. been proforma in
Mindoro, Panay and Masterhead 1954 - The union objected to Jayme's report as inadmissible under the hearsay rule evidence as supporting
Knot, or as not being the best evidence. papers for Jayme's
Statement B in Exh. A
The records of the purser and chief steward were allegedly examined in report
4 Losses sustained in voyages of September 3,764.50
M.V. Panay and Mindoro in four 4 to 11, ascertaining those damages.
voyages with estimates, 1954 - They can hardly be sanctioned by the "generally accepted auditing
Statement B, Exh. A standards" alluded to in Jayme's report.
5 Other estimated losses for the said September 10,000.00 The records of the purser and chief steward were allegedly examined in
voyages of M.V. Panay and 4 to 11, ascertaining those damages.
Mindoro based on interviews of 1954 - The pertinent records of the company should have been produced in court.
parties at the wharf
The records of the purser and chief steward were allegedly examined in
Statement B, Exh. A
6 Additional subsistence expenses. January 1 4,407.50 ascertaining those damages.
for M.V. Mindoro and Panay due to August - The purser and steward did not testify.
to the delays in their dismissal as 31, 1954 - Jayme interpreted - company would have realized more revenue if the union
certified by the pursers of the two had rendered better service; big volume of business in Iligan City due to
vessels Fertilizer Plant, Steel Mill and NPC Hydroelectric Plant; could have amounted to
Statement C, Exh. A at least P600,000 and that since it actually realized only P 470,716.29, its loss of
7 Estimated loss in freight and January 1 100,000.00 freight revenue for that period could be "conservatively" estimated at least
passenger revenue, based on 1953 to August P100,000
freight revenue for the same 31, 1954 - from the fact that the total fares received by the company during the eight-
period month period were reduced in the sum of P3, 951.58 (Jayme fixed the reduction
Statement D, Exh. A at the round figure of P4,000),
8 Estimated loss in passenger fares September 20,000.00
Statement D, Exh. A to
December
31, 1954
9 Lost freight charges as certified by September 62,680.12 Chief Magante did not testify on his statement. Instead, accountant Jayme, - Magante should have
the chief clerk of the consignees. 12 to Clerk substituting for Magante, testified on that statement. been proforma as a
Iligan office. Exh. B December Certifica SC said: witness.
28, 1954, tion - Jayme was not competent to take his place since the statement was prepared
Magant by Magante, not by Jayme. - the documents and
e records on which the
- The trial court required the production of the manifests supporting Magante's
1 Estimated overhead expenses for 20,000.00 Chief statement was based
statement (85-86 tsn march 9, 1955). Only one such manifest, Exhibit C, was
0 delay of vessels in port Clerk should have been
Exh. B Certifica produced. The nonproduction of the other records was not explained. proforma as evidence
tion or at least brought to
Magant the court for
e examination by the
union's counsel and its
accountant.
1 Forklift operating expenses 1955 5,677.54 Miguel - Siojo's reports were not the best evidence on the said operating expenses. The - the explanation of
1 consisting of salaries and J. Siojo, explanation of Badelles with respect to shutout cargoes and our observations Badelles with respect
maintenance expenses hired on Jayme's summaries are applicable to accountant Siojo's reports. to shutout cargoes and
Exh. E- 1 account
- The company's theory is that under the 1952 contract the union was obligated our observations on
1 Lost freight revenue 1955 17,838.78 ant
to provide for forklifts in the loading and unloading of cargo. Jayme's summaries 
2 Exh. E-2. - The company claimed as damages, the sum of P87,986.05 (P151,403.85 as
1 Forklift operating expenses 1956 3,520.90 erroneously computed by the consignees. counsel) consisting of supposed
3 Exh. F- 1 unrealized freight charges for shutout or unloaded cargoes for the year 1955 to
1 Lost freight revenue 1956 3,849.56 1959 based on the 25k annually estimate of loss
4 Exh. F-2 - The alleged expenses in the operation of the forklifts consisted of
1 Forklift operating expenses 1957 8,259.08
(a) the wages of the operators hired by the company and
5 Exh. G- 1.
(b) the cost of gasoline and oil and expenses for repair.
1 Lost freight revenue 1957 14,538.10
6 Exh. G-2.
1 Forklift operating expenses 1958 7,503.45 - The said damages, were computed for two days and nights or shortly before
7 Exh. H-1 and during the trial, allegedly examined the consignees record at Iligan City,
1 Lost freight revenue 1958 10,193.46 such as its cash book, cash vouchers, reports to the head office, shipping
8 Exh. H-2. manifests, and liquidation reports.
1 Forklift operating expenses 1959 8,745.35 - Those records were not produced in court.
9 Exh. I-1
- Their nonproduction was not explained. If the accountant was able to
2 Lost freight revenue 1959 7,959.83
0 Exh. I-2 summarize the contents of those records in two days, they could not have been
very voluminous. They should have been offered in evidence.
- We are of the opinion that, to avoid fraud or fabrication, the documents
evidencing the alleged expenses should have been proforma in evidence.
 - If the service rendered by the union members was unsatisfactory, it must be
because the poor stevedores were underfed and underpaid. They were
underfed and underpaid because the company was astute enough to insure
that it would obtain stevedoring service without paying for it.
- The company should bear those expenses because the same redounded to its
benefit.
TOTAL Php349, - the statement of the consignees counsel that the damages
245.37 totaled P412,663.17 is wrong.
- the trial court's award to the company of P450,000 as
damages, is not supported by the evidence.
Three forklifts, 200 pieces of pallet P38,835 or TEVES, - It was not included by the company’s counsel in the summary of damages. - SALES INVOICES
boards, 530 pieces of wire rope more than branch
slings and two pieces of tarpaulins the cost manage
in the total sum of P27, 215. In DUE TO r
that statement, he claims that the DEPRECIATI
damages, to the company by ON
reason of the depreciation of the
said items of equipment

Exhibit K - Jose C. Teves, the consignee’s branch manager at Iligan City

PIECES OF EVIDENCE - Statement showing the alleged cost of three forklifts, 200 pieces of pallet boards,
Company Counsel 530 pieces of wire rope slings and two pieces of tarpaulins in the total sum of P27,
215. In that statement, he claims that the damages, to the company by reason of the
Exhibit A – CPA Demetrio Jayme’s Report, hired accountant of the company depreciation of the said items of equipment amounted to P38, 835 or more than the
Exhibit B – Certification by the chief clerk of the consignees of Iligan office on the Lost freight cost thereof.
charges (did not testify) - he testified that he terminated the arrastre and stevedoring contract with the union
Exhibit C - Manifest of Siojo’s report upon instruction of the head office, in order to avoid further losses to the company
Exhibit D caused by the union's inefficient service
Exhibit E- SIOJO - After the termination of the contract, the members of the union allegedly harassed
- Forklift operating expenses (1955) the company with the help of goons. The cargoes could not be unloaded in spite of
- loss freight revenue the fact that the company had sought the protection of the law-enforcing authorities.
Exhibit F - Forklift operating expenses (1956) The consignee’s last recourse was to go to court. The company supposedly suffered
- loss freight revenue
losses as a result of the union's inefficient service since September 1, 1954. Teves
Exhibit G - Forklift operating expenses (1957)
hired auditors to ascertain the losses suffered by the company during the period from
- loss freight revenue
January 1 to September 11, 1954
Exhibit H - Forklift operating expenses (1958)
- loss freight revenue - that Salvador T. Lluch was the president of the union; Nicanor Halibas, the
Exhibit I - Forklift operating expenses (1959) treasurer; Mariano Badelles, the general manager, and Luarentino Badelles, a vice
- loss freight revenue president.
Exhibit J – Contract between Company and Union