Case Digest (A.M. No. RTJ-05-1920, RTJ-99-1432, RTJ-01-1623, OCA-IPI No. 02-1418-RTJ, A.M. No. 10425-Ret ,)
Facts:
Eastern and Australian Steamship Co., Ltd. and F.E. Zuellig, Inc., petitioners, v. Great American Insurance Co. and Court of First Instance of Manila, Branch XIII, G.R. No. L-37604, October 23, 1981, Supreme Court First Division, De Castro, J., writing for the Court (Mr. Justice de Castro was designated to sit with the First Division under Special Order No. 225).On December 10, 1971, Jackson and Spring (Sydney) Pty. Ltd. shipped one case of impellers for a Warman pump from Sydney aboard the SS Chitral, a vessel owned and operated in the Philippines by Eastern and Australian Steamship Co., Ltd. through its agent F.E. Zuellig, Inc., under Bill of Lading No. 31, consigned to Benguet Consolidated, Inc. in Manila. The shipment was insured with Great American Insurance Co. for P35,921.81. Clause 17 of the bill of lading limited carrier liability to 100 Sterling per package unless a greater value was declared and extra freight paid.
The SS Chitral arrived in Manila on December 22, 1971 but failed to discharge the shipment. Demand on petitioners for delivery and payment were not satisfactorily met; Great American, as subrogee of the consignee, paid the insured amount and filed suit on November 20, 1972 in the Court of First Instance (Civil Case No. 88985) to recover P35,921.81 with legal interest and attorney’s fees. In their answer petitioners alleged their liability was limited to 100 Sterling (P1,544.40) under Clause 17.
At pre-trial (May 28, 1973) the loss was admitted and the sole issue submitted for decision was whether petitioners’ liability was limited to 100 Sterling under Clause 17 of the bill of lading or whether the carrier’s liability should be fixed at $500 per package (or its peso equivalent) under Section 4(5) of the Carriage of Goods by Sea Act. The Court of First Instance, Branch XIII, by decision dated July 25, 1973, held Clause 17 void insofar as i...(Subscriber-Only)
Issues:
- Is Clause 17 of the bill of lading, limiting the carrier’s liability to 100 Sterling per package, contrary to Section 4(5) of the Carriage of Goods by Sea Act and therefore void?
- Did the Court of First Instance err in awarding attorney’s fees and costs in favor of Great Ame...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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