Labayen vs Talisay-Silay Milling Co. Inc. G.R.

No. L-29298 聽(1928)

March 15, 2016

Ponente: Justice Malcom

FACTS

Reynaldo Labayen and Teodoro Labayen are the owners of Dos

Hermanos, a hacienda in Talisay, Negros Occidental. They entered
into a contract with Talisay-Silay Milling Company Incorporated,
also called the Central, for the milling of sugar canes from their
hacienda.

Stipulated in the contract is the construction of a railroad with three

and a half meters right of way and maintenance of such railroad by
the central. However, the central was only able to construct a
railroad reaching hacienda Esmeralda No. 2, four kilometers away
from hacienda Dos Hermanos. For a railroad to extend to hacienda
Dos Hermanos, the construction would require a gradual elevation of
4.84% to 7%, would necessitate 26 curves and would cost
Php80,000.00. A civil engineer testifying in behalf of the defendants
allege that to construct such would be possible but it would be very
dangerous.
This led to an action for damages in the amount of Php 28,620.00
by the petitioners for the alleged breach of contract to grind sugar
canes at the Court of First Instance of Negros Occidental. The court
ruled against the petitioners and on the cross-complaint of the
defendants, condemned the petitioners to pay the sum of Php 12,
114.00.

Hence, this petition.

ISSUE

Whether or not the action for damages should prosper.

HELD

No. If the obligor voluntarily prevented the fulfillment of the

condition of the obligation, such condition shall be deemed fulfilled
(article 1186 of the New Civil Code). The path of the railroad has to
pass through the haciendas of Esteban de la Rama. Since he would
not grant permission to use his land, therefore preventing the
compliance of the obligation to grind, the action cannot prosper.
Labayen vs Talisay-Silay Milling Co. Inc. G.R.
No. L-29298 聽(1928)

March 15, 2016

Ponente: Justice Malcom

FACTS

Reynaldo Labayen and Teodoro Labayen are the owners of Dos

Hermanos, a hacienda in Talisay, Negros Occidental. They entered
into a contract with Talisay-Silay Milling Company Incorporated,
also called the Central, for the milling of sugar canes from their
hacienda.

Stipulated in the contract is the construction of a railroad with three

and a half meters right of way and maintenance of such railroad by
the central. However, the central was only able to construct a
railroad reaching hacienda Esmeralda No. 2, four kilometers away
from hacienda Dos Hermanos. For a railroad to extend to hacienda
Dos Hermanos, the construction would require a gradual elevation of
4.84% to 7%, would necessitate 26 curves and would cost
Php80,000.00. A civil engineer testifying in behalf of the defendants
allege that to construct such would be possible but it would be very
dangerous.
This led to an action for damages in the amount of Php 28,620.00
by the petitioners for the alleged breach of contract to grind sugar
canes at the Court of First Instance of Negros Occidental. The court
ruled against the petitioners and on the cross-complaint of the
defendants, condemned the petitioners to pay the sum of Php 12,
114.00.

Hence, this petition.

ISSUE

Whether or not the action for damages should prosper.

HELD

No. If the obligor voluntarily prevented the fulfillment of the

condition of the obligation, such condition shall be deemed fulfilled
(article 1186 of the New Civil Code). The path of the railroad has to
pass through the haciendas of Esteban de la Rama. Since he would
not grant permission to use his land, therefore preventing the
compliance of the obligation to grind, the action cannot prosper.