G.R. No. 223377 - 2100 Customs Brokers, Inc. vs. Philam Insurance Co.

On February 27, 2001, Ablestik Laboratories shipped two cardboard boxes containing 63 jars of Ablebond Adhesive from Los Angeles, California, USA, aboard Japan Airlines (JAL) Flight No. JL 5261, consigned to TSPIC in the Philippines. The goods transshipped in Japan and were expected to arrive in Manila on March 1, 2001 via JAL Flight No. JL 745.
Ablestik issued handling instructions to the freight forwarder, stating:

Shipments containing dry ice are perishable and must be delivered within 72 hours; no delay permitted.
Frozen products must maintain a temperature of -40°F.
If transit exceeds 72 hours, the shipment must be re-iced during transit or at the broker’s import destination.
Upon arrival, shipments must be stored at 32°F or colder in the destination broker’s freezer.

The goods were insured with Philam Insurance Company (now AIG Philippines Insurance, Inc.) under Marine Cargo Certificate No. 0801012154 and Open Policy No. 9595292.
The cargo arrived at Ninoy Aquino International Airport (NAIA) at 1:30 a.m. on March 1, 2001, and was stored at the Paircargo warehouse under the Bureau of Customs (BOC) control.
TSPIC notified 2100 Customs Brokers, Inc. (2100 CBI), the petitioner and customs broker, of the arrival at 2:47 p.m. on March 2, 2001, forwarding to them a Packing List mentioning "1 Year @ -40C or colder/Dry ice shipment" and the original handling instructions.
TSPIC also sent a duplicate Airway Bill marked "freight collect," indicating that freight charges amounting to ₱14,672 had to be paid before releasing the original documents and shipment from BOC custody.

Because notification came after banking hours on a Friday and no signatories were available to authorize payment, the freight charges were only settled on March 5, 2001 (Monday).
Consequently, the cargo was released by BOC and delivered by 2100 CBI to TSPIC at around 2:00 a.m. on March 6, 2001, five days after arrival.
Upon receipt, TSPIC representatives discovered the dry ice had melted, as confirmed in the Damage Report and photographs by the Manila Adjusters Surveyors Company (MASCO).

TSPIC filed a claim against 2100 CBI for shipment value damage; 2100 CBI refused payment, claiming delay was due to TSPIC’s failure to provide pre-alert and settle freight charges timely.
TSPIC filed a claim with Philam, which after MASCO’s survey, paid ₱391,917.69 as settlement. Philam then subrogated to TSPIC’s rights and sued 2100 CBI for reimbursement in Civil Case No. 78072.
2100 CBI denied liability, claiming it exercised due diligence and was merely a customs broker tasked to release goods following receipt of original import documents or pre-alert.
The Metropolitan Trial Court (MeTC) ruled 2100 CBI is a common carrier liable for damages, awarding Philam actual damages, attorney’s fees, and costs.
Regional Trial Court (RTC) affirmed the ruling, and the Court of Appeals (CA) denied 2100 CBI’s petition and motion for reconsideration, holding that 2100 CBI failed to exercise extraordinary diligence and that Philam had valid subrogation.

2100 CBI filed a Petition for Review under Rule 45, raising issues about its status as common carrier, the scope of the Marine Cargo Certificate, the necessity of the insurance policy's presentation, and their alleged negligence.
2100 CBI claimed it only had custody from release by BOC on March 6 and denied receiving the detailed handling instructions which were addressed to another freight forwarder.
Philam argued that the issues raised are factual and not re-examinable under Rule 45 and maintained 2100 CBI’s liability based on their status as common carrier and failure to exercise extraordinary diligence.

Whether petitioner 2100 Customs Brokers, Inc. is a common carrier engaged in transportation of goods.
Whether a Marine Cargo Certificate may cover goods transported by air.
Whether the insurance policy must be presented to establish the liability of the common carrier to the insurer Philam.
Whether 2100 Customs Brokers, Inc. was negligent in handling the TSPIC shipment, thus liable for damages.