Metrovet Corporation v. Hi-Grade Feeds Corporation

Summary

This Supreme Court case involves a product liability dispute where Hi-Grade Feeds Corporation sued distributors Metrovet Corporation and VAC Distributors for selling defective Ingelvac hog cholera vaccine. Despite proper administration to healthy hogs in 1999, massive mortalities occurred starting January 2000. Bureau of Animal Industry testing confirmed the vaccine failed potency tests in all batches. The Court applied Article 1562 of the Civil Code on implied warranty, ruling that distributors and retailers are liable for fitness of products sold, regardless of not being manufacturers. The decision establishes important precedent on product liability extending throughout the distribution chain, affirming the Court of Appeals' award of over PHP14 million in actual damages plus interest, attorney's fees, and litigation expenses. The ruling protects consumers by ensuring accountability from all parties in the product distribution conduit.