Case Digest (G.R. No. 77530)
Facts:
The case involves Aboitiz Shipping Corporation (petitioner) and Philippine American General Insurance Co. (respondent). The events began when Marinduque Mining Industrial Corporation (Marinduque) shipped a skid carton containing parts for valves aboard the SS Arthur Maersk from Boston, U.S.A., on April 25, 1980, as evidenced by bill of lading No. BOSF-45607. The shipment was ordered from Jamesbury, Singapore PTE, LTD., which provided a packing list and invoice detailing the contents valued at $39,417.60, along with freight and other charges amounting to $2,791.73. Upon arrival in Manila, the cargo was received by Aboitiz at Pier 4, North Harbor, for transshipment to Nonoc Island, for which Aboitiz issued bill of lading No. 23. On July 7, 1980, Marinduque reported that the cargo had been pilfered on the night of July 3, 1980, during heavy rain, with only $7,412.00 worth of the cargo remaining. Manila Adjusters and Surveyors Co. were engaged by Phil-Am, which confirmed the pilf...
Case Digest (G.R. No. 77530)
Facts:
Shipment Details
- Marinduque Mining Industrial Corporation (Marinduque) shipped one (1) skid carton of valve parts from Boston, U.S.A., to Manila, Philippines, via SS Arthur Maersk. The shipment was evidenced by Bill of Lading No. BOSF-45607 dated April 25, 1980.
- The cargo was ordered from Jamesbury, Singapore PTE, LTD., and accompanied by a packing list and invoice. The consular invoice issued by the Philippine Consulate in Singapore showed the total value of the cargo as $39,417.60, with freight and other charges amounting to $2,791.73.
Transshipment and Pilferage
- Upon arrival in Manila, the cargo was received by Aboitiz Shipping Corporation (Aboitiz) at Pier 4, North Harbor, for transshipment to Nonoc Island. Aboitiz issued Bill of Lading No. 23 for this purpose.
- On July 3, 1980, during heavy rain, the cargo was pilfered while in Aboitiz's possession at its terminal. Marinduque reported the pilferage on July 7, 1980, stating that only $7,412.00 worth of cargo remained out of the total value of $42,209.33.
Insurance and Claims
- Marinduque engaged the services of Manila Adjusters and Surveyors Co., which confirmed the pilferage in its report dated July 5, 1980, and a subsequent confirmatory report on November 8, 1980.
- On August 11, 1980, Marinduque filed a claim against Aboitiz for P246,430.80, representing the value of the pilfered cargo. On the same day, Marinduque also filed a claim with Philippine American General Insurance Co. (Phil-Am) under Policy MRN-01754 PAG.
- Phil-Am paid Marinduque P246,430.80 on August 25, 1981, and subsequently filed a complaint against Aboitiz for recovery of the same amount, claiming subrogation to Marinduque's rights.
Lower Court Proceedings
- The Regional Trial Court (RTC) dismissed Phil-Am's complaint on January 11, 1984, ruling that the insurance policy was issued after the pilferage and that the coverage did not attach to the shipment. The RTC also denied Phil-Am's motion for reconsideration on March 19, 1984.
- Phil-Am appealed to the Court of Appeals, which reversed the RTC's decision on December 17, 1986, ordering Aboitiz to pay Phil-Am P246,430.80 plus P15,000.00 in attorney's fees. The Court of Appeals denied Aboitiz's motion for reconsideration on February 27, 1987.
Issue:
- (Unlock)
Ruling:
- (Unlock)
Ratio:
- Liability for Pilferage: Aboitiz, as the custodian of the cargo, was responsible for its safekeeping. The pilferage occurred while the cargo was in Aboitiz's possession, making it liable for the loss.
- Insurance Coverage: The cargo was covered by a continuous and open insurance policy (Marine Open Policy No. 100184) issued by Phil-Am, which took effect before the pilferage. The Marine Risk Note was merely a confirmation of the specific shipment and did not affect the coverage.
- Due Process: Aboitiz was declared in default during the trial court proceedings, and the evidence was received ex parte. The Court found no violation of due process, as Aboitiz had the opportunity to participate but failed to do so.