Case Digest (G.R. No. 186014)
Facts:
In Designer Baskets, Inc. v. Air Sea Transport, Inc. and Asia Cargo Container Lines, Inc. (G.R. No. 184513, March 9, 2016), petitioner Designer Baskets, Inc. (DBI), a Philippine manufacturer of housewares for export, received in October 1995 an import purchase order from Ambiente, a foreign buyer, for 223 cartons of wooden handicrafts valued at US$12,590.87, payable by telegraphic transfer. Ambiente appointed Asia Cargo Container Lines, Inc. (ACCLI), as forwarding agent for its principal Air Sea Transport, Inc. (ASTI), a U.S. carrier. On January 7, 1996 DBI delivered the shipment to ACCLI, which issued ASTI Bill of Lading No. AC/MLLA601317; DBI retained the originals pending payment. On January 23, 1996 ASTI and Ambiente executed an indemnity agreement, whereby ASTI released the goods without surrender of the bills of lading and Ambiente agreed to indemnify ASTI. Unaware of DBI’s interest and without payment, ASTI released the cargo to Ambiente. DBI’s demands for payment went unCase Digest (G.R. No. 186014)
Facts:
- Parties and Transaction
- Designer Baskets, Inc. (DBI), a Philippine exporter, sold 223 cartons of wooden items to foreign buyer Ambiente for US$12,590.87, payable by telegraphic transfer.
- Ambiente designated Asia Cargo Container Lines, Inc. (ACCLI) as forwarding agent for Air Sea Transport, Inc. (ASTI) to ship from Manila to Beverly Hills.
- Bill of Lading, Indemnity, and Dispute
- On January 7, 1996, DBI delivered the goods to ACCLI, which issued ASTI Bill of Lading No. AC/MLLA601317. DBI retained originals pending payment.
- On January 23, 1996, Ambiente and ASTI executed an Indemnity Agreement obligating ASTI to release the shipment without surrender of the bills of lading, and indemnifying ASTI against any liability. ASTI released the goods without DBI’s knowledge or payment.
- DBI sued ASTI, ACCLI, ACCLI’s incorporators, and later Ambiente, for the shipment’s value (US$12,590.87), interest, exemplary damages, attorney’s fees, and costs, alleging unlawful release without surrender and corporate-law violations.
Issues:
- Whether ASTI and ACCLI are solidarily liable to DBI for the shipment’s value due to release without surrender of the original bill of lading.
- What law governs a common carrier’s duty concerning release of goods absent the original bill of lading—Article 353 of the Code of Commerce or Civil Code provisions on sale contracts (Articles 1503, 1523)?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)