Case Digest (G.R. No. L-16789)
Facts:
Atlantic Mutual Insurance Company v. Manila Port Service and/or Manila Railroad Company, G.R. No. L-16789. October 31, 1962. The Supreme Court En Banc, Padilla, J., writing for the Court.On 14 February 1958 Pfizer Corporation shipped two cartons of bonamine tablets and five cartons of combiotic potassium from New York aboard the SS "Pioneer Mist" consigned to Pfizer Laboratories (Phil.), Inc., Manila. The seven cartons were insured with Atlantic Mutual Insurance Company. The vessel arrived at Manila on 19 March 1958; the shipment was unloaded and delivered to Manila Port Service (a subsidiary of Manila Railroad Company) on 20 March 1958, and the cargo remained in the Port Service’s custody until delivery to the consignee on 10 April 1958.
When delivered the cargo was short and damaged: one carton of bonamine (valued $283.18) was missing and five cartons of combiotic potassium were damaged ($48.80), total loss $331.98 (converted to P688.93 at the rate stated). Atlantic Mutual paid the consignee P668.93 to cover the loss and, on 3 March 1959, sued Manila Port Service and/or Manila Railroad Company in the Court of First Instance (CFI) of Manila to recover P668.93, interest and costs.
In their answer (16 March 1959) the defendants invoked Paragraph 15 of the management contract between Manila Port Service and the Bureau of Customs (dated 29 February 1956) which limited liability to P500 per package unless otherwise specified and required that claims be filed with the contractor within fifteen (15) days from discharge of the last package, and that suits be brought within one year of arrival or of denial of claim. The parties stipulated facts (30 September 1959), including that no claim was filed with Manila Port Service within 15 days but that suit in court was filed within one year of arrival.
On 18 January 1960 the CFI held that the 15-day filing requirement applied only to claims rejected or denied by the contractor and that a suit filed within one year was not ba...(Subscriber-Only)
Issues:
- Is the filing of a claim with the arrastre operator within fifteen (15) days from discharge of the last package a condition precedent that, if not complied with, bars an action in court against the operator?
- Does the fifteen-day claim requirement and the P500-per-package limitation in Paragraph 15 of the management contract bind a consignee or insurer who are not signatories to the contract?
- If Paragraph 15 is binding, what is the effect on the plaintiff-insurer’s recovery (i.e., is reco...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)