Case Digest (G.R. No. 27484)
Facts:
This case involves Edgar Cokaliong Shipping Lines, Inc. (petitioner), a common carrier, and UCPB General Insurance Company, Inc. (respondent), the insurer. On December 11, 1991, Nestor Angelia and Zosimo Mercado delivered cargoes to Edgar Cokaliong Shipping Lines, Inc. for transport aboard the M/V Tandag from Cebu City to Tandag, Surigao del Sur. The petitioner issued Bills of Lading Nos. 58 and 59 for these cargoes, declaring their values at ₱6,500.00 and ₱14,000.00, respectively. On the date of shipment, Feliciana Legaspi insured these cargoes with respondent UCPB for ₱50,000.00 and ₱100,000.00 respectively under marine risk notes issued by respondent.
During the voyage, a fire broke out in the engine room of the M/V Tandag after passing Mandaue-Mactan Bridge, engulfing and destroying the entire vessel and cargo. The captain filed a marine protest. Feliciana Legaspi then filed claims with respondent for the cargo loss and was compensated ₱148,500.00 in total by respondent, wh
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Case Digest (G.R. No. 27484)
Facts:
- Shipment and Insurance
- On December 11, 1991, Nestor Angelia delivered to petitioner Edgar Cokaliong Shipping Lines, Inc., cargo consisting of one carton of Christmas decor and two sacks of plastic toys to be transported on M/V Tandag from Cebu City to Tandag, Surigao del Sur, with Bill of Lading No. 58 issued, valuing the cargo at ₱6,500.00. Angelia was both shipper and consignee.
- Zosimo Mercado delivered to petitioner cargo consisting of two cartons of plastic toys and Christmas decor, one roll of floor mat, and one bundle of assorted goods for the same voyage, with Bill of Lading No. 59 issued, valuing it at ₱14,000.00. Mercado was both shipper and consignee.
- Feliciana Legaspi insured the cargo under Bill of Lading No. 59 for ₱100,000.00 and the cargo under No. 58 for ₱50,000.00 with respondent UCPB General Insurance Company, Inc., paying premiums accordingly.
- Loss of Cargo
- On December 12, 1991, while on voyage, fire broke out in the engine room after the vessel passed the Mandaue-Mactan Bridge, destroying the vessel and all cargo onboard. The captain filed a marine protest.
- Feliciana Legaspi filed claims with respondent for cargo under both Bills of Lading, submitting receipts and order slips allegedly signed by consignors. Respondent approved and paid Legaspi a total of ₱148,500.00, after which Legaspi executed subrogation receipts in favor of respondent.
- Legal Proceedings
- Respondent, as subrogee of Legaspi, filed a tort claim against petitioner for ₱148,500.00 plus attorney’s fees and costs, alleging negligence of petitioner caused the loss.
- Petitioner denied negligence, citing clearance by Board of Marine Inquiry, argued lack of cause of action, and contended payment to shippers for declared value extinguished liability.
- Depositions revealed that petitioner paid ₱14,000.00 to Legaspi Marketing for Bill of Lading No. 59 cargo and set off ₱6,500.00 value against Nestor Angelia’s account for Bill of Lading No. 58 cargo. Petitioner claimed it did not know of insurance or payments made to Legaspi until summons.
- Trial court dismissed the case for lack of merit. CA reversed and ordered petitioner to pay ₱148,500.00 to respondent with interest but dismissed claims for attorney’s fees and petitioner’s counterclaims. Petitioner’s motion for reconsideration was denied.
- Petitioner filed petition for review before the Supreme Court.
Issues:
- Whether petitioner is liable for the loss of the goods.
- If liable, what is the extent of petitioner’s liability?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)