Case Digest (G.R. No. 184661)
Facts:
In Asia Lighterage and Shipping, Inc. v. Prudential Guarantee and Assurance, Inc. (G.R. No. 147246, August 19, 2003), Marubeni American Corporation shipped 3,150 metric tons of Better Western White Wheat from Portland, Oregon to Manila on June 13, 1990, under Bill of Lading No. PTD/Man-4, valued at US$423,192.35. The cargo was insured for P14,621,771.75 under Marine Cargo Risk Note RN 11859/90 issued by Prudential Guarantee. Upon arrival on July 25, 1990, Asia Lighterage was hired by consignee General Milling Corporation to lighter and deliver the cargo to its Bo. Ugong warehouse via barge PSTSI III (Lighterage Receipt No. 0364). On August 17, transport was halted due to an incoming typhoon; on August 22, the barge was sheltered at Engineering Island but struck an unseen object, creating a hole. A Marine Protest was filed on August 28 and Gaspar Salvaging refloated and superficially patched the barge. On September 5 the barge ran aground at the Sta. Mesa spillways; part of the w...Case Digest (G.R. No. 184661)
Facts:
- Shipment and Insurance
- On June 13, 1990, Marubeni American Corporation shipped 3,150 metric tons of Better Western White Wheat in bulk aboard M/V NEO CYMBIDIUM V-26 from Portland, Oregon to Manila, evidenced by Bill of Lading No. PTD/Man-4, valued at US$423,192.35.
- The cargo was insured with Prudential Guarantee and Assurance, Inc. under Marine Cargo Risk Note RN 11859/90 for P14,621,771.75.
- Handover to Asia Lighterage and Initial Delivery Attempt
- On July 25, 1990, the vessel arrived in Manila, and the cargo was transferred to Asia Lighterage and Shipping, Inc., contracted by consignee General Milling Corporation (GMC) to deliver to its warehouse in Bo. Ugong, Pasig City.
- On August 15, 1990, 900 metric tons were loaded on barge PSTSI III (Lighterage Receipt No. 0364) for delivery, but transport was suspended on August 17 due to a typhoon warning.
- Damage, Salvage, and Partial Delivery
- On August 22, 1990, Asia Lighterage sought shelter off Baseco; PSTSI III struck an underwater protrusion, sustaining a hole. A Marine Protest was filed on August 28. Gaspar Salvaging Corporation refloated the barge and provisionally patched the hole with clay and cement.
- On September 5, 1990, en route to GMC’s wharf from ISLOFF terminal, PSTSI III ran aground at the Sta. Mesa spillways due to strong current; some cargo was transferred to three other barges.
- Sinking and Loss
- On September 6, 1990, the barge’s towing bits broke and it sank completely, resulting in total loss of the remaining cargo. A second Marine Protest was filed on September 7.
- On September 14, 1990, salvaged wheat was sold for P201,379.75. GMC claimed the loss from Asia Lighterage and Prudential. On January 30, 1991, Prudential indemnified GMC for P4,104,654.22 and, as subrogee, filed suit against Asia Lighterage on July 3, 1991, seeking recovery plus attorney’s fees and costs.
- Trial and Appeals
- The Regional Trial Court (RTC) rendered judgment on April 6, 1994, ordering Asia Lighterage to pay Prudential P4,104,654.22 with interest from July 3, 1991, plus 10% attorney’s fees; counterclaim dismissed.
- The Court of Appeals (CA) on May 11, 2000, affirmed with modification, deducting the P201,379.75 salvage value; its February 21, 2001 resolution denied reconsideration. Asia Lighterage petitioned to this Court.
Issues:
- Whether Asia Lighterage and Shipping, Inc. is a common carrier under Article 1732 of the Civil Code.
- Assuming it is a common carrier, whether it exercised the extraordinary diligence required in caring for GMC’s cargo.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)