CHRYSLER PHILIPPINES CORPORATION vs. CA - G.R. No. L-55684

CHRYSLER PHILIPPINES CORPORATION vs. CA

and SAMBOK MOTORS CO. (BACOLOD)

G.R. No. L-55684         December 19, 1984

Petitioner is a domestic corporation engaged in the assembling and sale of motor vehicles and other automotive products. Respondent Sambok Motors Co., a general partnership, was its dealer for automotive products with offices at Bacolod and Iloilo. The two offices were run by relatives. Miguel Ng was Assistant Manager for Sambok, Bacolod, while an elder brother, Pepito Ng, was the President. Petitioner filed with the CFI a Complaint for Damages against Allied Brokerage Corporation, Negros Navigation Company and Sambok, Bacolod, alleging that petitioner delivered automotive products which Sambok, Bacolod ordered, to its forwarding agent, Allied Brokerage Corporation, for shipment. Allied Brokerage loaded the goods on a vessel owned and operated by Negros Navigation Company, for delivery. When petitioner tried to collect from the amount representing the price of the spare parts plus handling charges, Sambok, Bacolod, refused to pay claiming that it had not received the merchandise. Petitioner also demanded the return of the merchandise or their value from Allied Brokerage and Negros Navigation, but both denied any liability. Sambok, Bacolod professed that they have no knowledge of having ordered from petitioner said articles.

ISSUE:

Whether or not the matter of misdelivery is a decisive factor for relieving Sambok, Bacolod, of liability herein.

HELD:

No. While it may be that the Parts Order Form specifically indicated Iloilo as the destination, as testified to by Ernesto Ordonez, Parts Sales Representative of petitioner, Sambok, Bacolod, and Sambok, Iloilo, are actually one. In fact, admittedly, the order for spare parts was made by the President of Sambok, Pepito Ng, through its marketing consultant. The petitioner's Complaint should be dismissed since the petitioner had not performed its part of the obligation under the contract by not delivering the goods at Sambok, Iloilo, the place designated in the Parts Order Form, and must, therefore, suffer the loss. In other words, that there was a non-delivery since the merchandise was never placed in the control and possession of Sambok, Bacolod, the vendee.

Under the circumstances, Sambok, Bacolod, cannot be faulted for not accepting or refusing to accept the shipment from Negros Navigation four years after shipment. The evidence is clear that Negros Navigation could not produce the merchandise nor ascertain its whereabouts at the time Sambok, Bacolod, was ready to take delivery. Where the seller delivers to the buyer a quantity of goods less than he contracted to sell, the buyer may reject them.