Title
Compania Maritima vs. Insurance Co. of North America
Case
G.R. No. L-18965
Decision Date
Oct 30, 1964
A shipping company was held liable for the loss of hemp cargo due to unseaworthy conditions, despite claims of force majeure, with the insurer subrogated to recover damages.
A

Case Digest (G.R. No. 190187)

Facts:

  • Contracting and shipment
    • Macleod & Company of the Philippines (shipper) telephoned Compania Maritima (carrier) in October 1952 to transport 2,645 bales of hemp from its Sasa private pier, Davao City, to Manila for transshipment to Boston, U.S.A.
    • Oral agreement confirmed by a written booking; carrier dispatched LCT Nos. 1023 and 1025, each manned by an authorized patron and assistant patron.
    • Patrons issued carrier’s receipts stating “Received on behalf of S.S. Bowline Knot… for transshipment at Manila onto S.S. Steel Navigator. FINAL DESTINATION: Boston.”
  • Mishap, damage, and loss computation
    • During the night of October 29–30, 1952, LCT No. 1025 sank at the government marginal wharf, damaging or losing 1,162 bales (2,324 piculs) of hemp.
    • Damaged hemp was cleaned, washed, reconditioned, and redried at Odell Plantation; only 2,197.75 piculs were recovered. Value dropped from ₱116,835.00 to ₱84,887.28 (loss ₱31,947.72).
    • Additional expenses: ₱8,863.30 for checking, grading, rebailing; ₱19,610.00 for washing, cleaning, redrying; total loss ₱60,421.02.
  • Insurance, subrogation, and proceedings
    • All of Macleod’s abaca shipments, including the damaged cargo, were insured with Insurance Company of North America; insurer paid ₱64,018.55 and obtained subrogation.
    • As assignee of Macleod’s rights, the insurer sued Compania Maritima on October 28, 1953, for the unrecovered ₱60,421.02.
    • The trial court and the Court of Appeals awarded ₱60,421.02 with legal interest and costs; carrier appealed to the Supreme Court.

Issues:

  • Was there a contract of carriage despite loading on the carrier’s lighter and absence of a bill of lading?
  • Did a fortuitous event or storm excuse the carrier’s liability for the sinking?
  • Can the insurer, as subrogee of the shipper, maintain this action against the carrier?
  • Did the Court of Appeals err in treating the carrier’s desistance to produce certain books as an implied admission of the shipper’s account?
  • Does the insurer have the legal personality to sue the carrier?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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