Food Terminal v. Court of Appeals · G.R. 120097

Petitioner: Food Terminal
Respondent: Court of Appeals
Citation: G.R. No. 120097
Court: Supreme Court
Division: Third Division
Ponente: Francisco, J.
Decided: September 23, 1996

Summary

Food Terminal Inc. (FTI), a government corporation providing storage services, was sued by TAO Development Inc. for damages after an ammonia leak in FTI's cold storage facility damaged onions intended for export to Japan. The trial court and Court of Appeals found FTI negligent and awarded actual damages, unearned profits, and attorney's fees with 12% annual interest. The Supreme Court affirmed the liability and damage awards but modified the interest rate, ruling that the proper rate is 6% per annum for breach of non-loan obligations under Civil Code Art. 2209, but 12% applies from judgment finality until full payment. The case establishes important precedent on proper interest rates for different types of monetary judgments in breach of contract cases.

Statutes applied

Civil Code, Art. 2209

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By the Intellegal Editorial Board · September 23, 1996

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