Valenzuela Hardwood v. Court of Appeals

Summary

Valenzuela Hardwood contracted Seven Brothers Shipping to transport logs via chartered vessel which sank due to captain's negligence in cargo stowing. The charter party contained a clause exempting the shipowner from liability for cargo loss or damage. The trial court held this stipulation void under Civil Code provisions governing common carriers and ordered Seven Brothers to pay P2,000,000 damages. The Court of Appeals reversed, distinguishing private carriers from common carriers. The Supreme Court affirmed, establishing that private carriers may validly stipulate exemption from liability even for negligence since public policy considerations protecting the general public do not apply to private charter arrangements between specific parties who freely negotiate contract terms.