Sunday, September 16, 2012

case digest of manogura : de guzman v. toyota

CARLOS B. DE GUZMAN,
vs.
TOYOTA CUBAO, INC.,

FACTS:

On November 27, 1997, BUYER purchased from SELLER a brand new vehicle. The vehicle was delivered to BUYER two days later. On October 18, 1998, BUYER demanded the replacement of the engine of the vehicle because it developed a crack after traversing Marcos Highway during a heavy rain. As BUYER knows no reason why the vehicle's engine would crack just like that, the same could only be due to the fact that said engine and/or the vehicle itself was defective even from the time it was bought. BUYER asserted that respondent should replace the engine with a new one based on an implied warranty. SELLER refused to answer for this defect saying it is not covered by the vehicle's warranty. It refused to replace the vehicle as BUYER demanded (or at least its engine, or even repair the damage). He further alleged that the BUYER's cause of action had prescribed as the case was filed more than six months from the date the vehicle was sold and/or delivered.

ISSUES:

1) Whether the SELLER is liable for the redhibitory defects of the vehicle.

2) Whether the BUYER's cause of action had prescribed.

RULING:

The pertinent provisions of the Code set forth the available remedies of a buyer against the seller on the basis of a warranty against hidden defects:

Art. 1561. The vendor shall be responsible for warranty against the hidden defects which the thing sold may have, should they render it unfit for the use for which it is intended, or should they diminish its fitness for such use to such an extent that, had the vendee been aware thereof, he would not have acquired it or would have given a lower price for it; but said vendor shall not be answerable for patent defects or those which may be visible, or for those which are not visible if the vendee is an expert who, by reason of this trade or profession, should have known them. (Emphasis supplied)

Art. 1566. The vendor is responsible to the vendee for any hidden faults or defects in the thing sold, even though he was not aware thereof.

This provision shall not apply if the contrary has been stipulated and the vendor was not aware of the hidden faults or defects in the thing sold.

Art. 1571. Actions arising from the provisions of the preceding ten articles shall be barred after six months from the delivery of the thing sold.

Wherefore, the SELLER is not liable for the defects and a redhibitory action for violation of an implied warranty against hidden defects has been time-barred.

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