Case Digest (G.R. No. 94149)
Facts:
- The case involves American Home Assurance Company (petitioner) and National Marine Corporation (respondent).
- On June 19, 1988, Cheng Hwa Pulp Corporation shipped 5,000 bales of bleached kraft pulp from Haulien, Taiwan, aboard the "SS Kaunlaran," owned and operated by National Marine Corporation.
- The shipment was consigned to Mayleen Paper, Inc. of Manila and insured by American Home Assurance Company.
- Upon arrival in Manila on June 22, 1988, and subsequent delivery to Mayleen Paper, Inc., it was discovered that 122 bales were either damaged or lost, amounting to a loss of 4,360 kilograms valued at P61,263.41.
- Mayleen Paper, Inc. demanded indemnification from National Marine Corporation, which was not heeded.
- American Home Assurance Company paid Mayleen Paper, Inc. P31,506.75 for the damages and was subrogated to the rights of Mayleen Paper, Inc.
- On June 6, 1989, American Home Assurance Company filed a complaint for recovery of the sum of money and attorney's fees.
- National Marine Corporation filed a motion to dismiss, arguing that the claim did not meet the threshold for averages under Article 848 of the Code of Commerce.
- The Regional Trial Court dismissed the complaint, and the Court of Appeals upheld this decision.
- American Home Assurance Company then filed a petition for certiorari with the Supreme Court.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled that the Court of Appeals did not err in dismissing the petition for certiorari, as the proper remedy was an appeal.
- The Supreme Court reversed the decisions of both the Court of Appeals and the Regional Trial Court, ruling that the provisions on averages under the Code of Commerce do not apply in cases of neg...(Unlock)
Ratio:
- The Supreme Court held that the liability of common carriers for loss, destruction, or deterioration of goods is primarily governed by the Civil Code, and only suppletorily by the Code of Commerce.
- Under Article 1733 of the Civil Code, common carriers are required to observe extraordinary diligence in the care of goods.
- Article 1735 presumes the carrier to be at fault unless it proves otherwise. ...continue reading
Case Digest (G.R. No. 94149)
Facts:
The case involves American Home Assurance Company (petitioner) and National Marine Corporation (respondent). On June 19, 1988, Cheng Hwa Pulp Corporation shipped 5,000 bales of bleached kraft pulp from Haulien, Taiwan, aboard the "SS Kaunlaran," owned and operated by National Marine Corporation. The shipment, consigned to Mayleen Paper, Inc. of Manila, was insured by American Home Assurance Company. Upon arrival in Manila on June 22, 1988, and subsequent delivery to Mayleen Paper, Inc., it was discovered that 122 bales were either damaged or lost, amounting to a loss of 4,360 kilograms valued at P61,263.41. Mayleen Paper, Inc. demanded indemnification from National Marine Corporation, which was not heeded. Consequently, American Home Assurance Company, having paid Mayleen Paper, Inc. P31,506.75 for the damages, was subrogated to the rights of Mayleen Paper, Inc. On June 6, 1989, American Home Assurance Company filed a complaint for recovery of the sum of money and attorney's fees. National Marine Corporation filed a motion to dismiss, arguing that the claim did not meet the threshold for averages under Article 848 of the Code of Commerce. The Regional Trial Court dismissed the complaint, and the Court of Appeals upheld this decision. American Home Assurance Comp...