YU CON, plaintiff-appellee,
vs.
GLICERIO IPIL, NARCISO LAURON, and JUSTO SOLAMO, defendants-appellants. G.R. No.

L-10195, December 29, 1916 Facts: Plaintiff Yu Con, a merchant engaged in the sale of cloth and domestic articles in the town of Catmon, city of Cebu, had several times chartered from the defendant Narciso Lauron, a banca named Maria belonging to the latter, of which Glicerio Ipil was master and Justo Solamo, supercargo, for the transportation of certain merchandise and some money to and from the said town and the port of Cebu. On or about the 17th of October, 1911, the plaintiff chartered the said banca for the transportation of various merchandise from the port of Cebu to Catmon. The following day, he delivered to the other two defendants, Ipil, and Solamo, the sum of P450, which was in a trunk belonging to the plaintiff, for the purpose of its delivery to the latter's shop in Catmon for the purchase of corn in this town. While the money was still in said trunk abroad the vessel, on the night of the said 18th of October, the time scheduled for the departure of the Maria from the port of Cebu, said master and said supercargo transferred the P450 from the plaintiff's trunk, where it was, to theirs, which was in a stateroom of the banca, from which stateroom both the trunk and the money disappeared during that same night, and that the investigations, made to ascertain their whereabouts, produced no result. At the termination of the trial, the court held that there was no room to doubt that the sole cause of the disappearance of the money from the said banca was the negligence of the master and the supercargo, the defendants Ipil and Solamo, respectively, and that the defendant Narciso Lauron was responsible for that negligence, as owner of the banca, pursuant to articles 589, 587, and 618 of the Code of Commerce, the plaintiff therefore being entitled to recover the amount lost. Issue: Whether or not the trial court erred in holding the three defendants civilly liable for the sum lost. Held: NO. In order that a thing may be transported, it must be delivered to the carrier, as the Code says. From the time it is delivered to the carrier or shipper until it is received by the consignee, the carrier has it in his possession, as a necessary condition for its transportation, and is obliged to preserve and guard it; wherefore it is but natural and logical that he should be responsible for it. Ipil and Solamo liable as depositaries It is unquestionable that the defendants Glicerio Ipil and Justo Solamo were the carriers of the said P450 belonging to the plaintiff, and that they received this sum from the latter for the purpose of delivering it to the store of the town of Catmon, to which it had been consigned. Under such circumstances, said defendants were the depositaries of the money. Having failed to exercise for its safe-keeping the diligence required by the nature of the obligation assumed by them and by the circumstances of the time and the place, it is evident that, in pursuance of the provisions of articles 1601 and 1602, in their relation to articles 1783 and 1784, and as prescribed in articles 1770, of the Civil Code, they are liable for its loss or misplacement and must restore it to the plaintiff, together with the corresponding interest thereon as an indemnity for the losses and damages caused him through the loss of the said sum. Lauron liable as a shipowner In maritime commerce, the shippers and passengers in making contracts with the captain do so through the confidence they have in the shipowner who appointed him; they presume that the owner made a most careful investigation before appointing him, and, above all, they themselves are unable to make such an investigation, and even though they should do so, they could not obtain complete security, inasmuch as the shipowner can, whenever he sees fir, appoint another captain instead. The shipowner is in the same case with respect to the members of the crew, for, though he does not appoint directly, yet, expressly or tacitly, he contributes to their appointment. On the other hand, if the shipowner derives profits from the results of the choice of the captain and the crew, when the choice turns out successful, it is also just that he should suffer the consequences of an unsuccessful appointment, by application of the rule of natural law contained in the Partidas, viz., that he who enjoys the benefits derived from a thing must likewise suffer the losses that ensue therefrom.

Captains and Masters of Vessels For legal purposes, that is, for the determination of the nature and effect of the relations created between the plaintiff, as owner of the merchandise laden on said craft and of the money that was delivered to the master, Ipil, and the defendant Lauron, as owner of the craft, the latter was a vessel, according to the meaning and construction given to the word vessel in the Mercantile Code, in treating of maritime commerce, under Title 1,
Book 3. The word vessel serves to designate every kind of craft by whatever particular or technical name it may now be known or which nautical advancements may give it in the future. According to the foregoing definitions, then, we should hold that the banca called Maria, chartered by the plaintiff Yu Con from the defendant Narciso Lauron, was a "vessel", pursuant to the meaning this word has in mercantile law, that is, in accordance with the provisions of the Code of Commerce in force. Glicerio Ipil, the master of the said banca Maria, must also be considered as its captain, in the legal acceptation of this word. The name of captain or master is given, according to the kind of vessel, to the person in charge of it. Captain is applied to those who govern vessels that navigate the high seas or ships of large dimensions and importance, although they be engaged in the coastwise trade. Masters are those who command smaller ships engaged exclusively in the coastwise trade. For the purposes of maritime commerce, the words "captain" and "master" have the same meaning; both being the chiefs or commanders of ships. It is therefore evident that, in accordance with the provisions of the Code of Commerce in force, which are applicable to the instance case, the defendant Narciso Lauron, as the proprietor and owner of the craft of which Glicerio Ipil was the master and in which, through the fault and negligence of the latter and of the supercago Justo Solamo, there occurred the loss, theft, or robbery of the P450 that belonged to the plaintiff and were delivered to said master and supercargo, a theft which, on the other hand, as shown by the evidence, does not appear to have been committed by a person not belonging to the craft, should, for said loss or theft, be held civilly liable to the plaintiff, who executed with said defendant Lauron the contract for the transportation of the merchandise and money aforementioned between the port of Cebu and the town of Catmon, by means of the said craft.