- Petitioner
- Amando
- Respondent
- Romillo Vs. Cosmo Sealand Co.
- Citation
- G.R. No. 203173
- Court
- Supreme Court
- Division
- Second Division
- Decided
- December 5, 2018
Summary
This case involves a contractual dispute over an Undertaking agreement where manning agent Jupiter Maritime Corporation (JMC) and its President Amando Romillo became jointly and severally liable for US$287,816.46 to shipping companies Cosmo Sealand and CSL Maritime after JMC diverted funds meant for seafarers' benefits. When JMC defaulted on the installment payments after paying only the first installment, respondents sued for the reduced amount of US$171,233.51. Romillo argued the contract should be rescinded or annulled due to respondents' alleged misrepresentation about having 'disbursed again' all listed amounts, since some Social Security and Pag-IBIG premiums remained unpaid. The Supreme Court rejected this argument, ruling that the disputed clause was merely a recital of past events, not a binding obligation, and that while the cause was inadequate, no fraud or other vices of consent existed to invalidate the contract. The Court affirmed the joint and several liability, emphasizing that JMC must reimburse respondents to the extent they benefited from the re-disbursement.