Case Digest (G.R. No. L-68118)
Facts:
Home Insurance Company v. American Steamship Agencies, Inc. and Luzon Stevedoring Corporation, G.R. No. L-25599, April 04, 1968, the Supreme Court En Banc, Bengzon, J.P., J., writing for the Court.The shipment: Consorcio Pesquero del Peru shipped 21,740 jute bags of Peruvian fish meal on board the SS Crowborough under clean bills of lading dated January 17, 1963, consigned to San Miguel Brewery, Inc. (now San Miguel Corporation). The cargo arrived in Manila on March 7, 1963 and was discharged into the lighters of Luzon Stevedoring Corporation. Upon delivery to the consignee, shortages totaling P12,033.85 were discovered. The cargo had been insured by Home Insurance Company for $202,505.
After the consignee's claim, Home Insurance Company paid San Miguel P14,870.71 as full settlement and, as subrogee, sued American Steamship Agencies, Inc. (shipowner/agent and defendant-appellant) and Luzon Stevedoring Corporation (defendant) for reimbursement in the Court of First Instance (CFI) of Manila. The complaint (filed March 6, 1964) sought recovery of the amount paid plus legal interest and attorney’s fees. Luzon Stevedoring answered that it had delivered what it received and invoked Article 366 of the Code of Commerce (claims to be made within 24 hours). American Steamship Agencies denied liability, relying on a charter party incorporated into the bills of lading that allegedly shifted responsibility to the charterer and contained an exemption of the owner from liability; it also asserted it exercised due diligence and acted as a forwarding agent only.
At trial the CFI (November 17, 1965) absolved Luzon Stevedoring Corporation and rendered judgment against American Steamship Agencies for P14,870.71 with legal interest and P1,000 attorney’s fees. The trial court held (a) the owner could not rely on the charter-party exemption because Article 587 of the Code of Commerce makes the ship agent civilly liable for acts of the captain; (b) the exemption was against public policy under Article 1744 of the Civil Code; (c) common carriers are presumed negligent under Article 1735 of the Civil Code unless they prove extraordinary diligence; and (d) when goods delivered in good order arrive in bad order, the carrier is prima facie liable. American Steamship Agencies appealed directly to the Supreme Court, raising the principal issue whether the charter-party clause exempting the owner from liability was valid. The bills of lading expressly incorporated the charter party (stamped: “Freight prepaid as per charter party. Subject to all terms, conditions and exceptions of charter party dated London, Dec. 13, 1962”). The charter showed an affreightment of the whole vessel (not a demise), with provisions placing loading, stowing and discharging at th...(Subscriber-Only)
Issues:
- Is the stipulation in the charter party exempting the shipowner from liability for loss or damage to cargo valid so as to absolve American Steamship Agencies from l...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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