Case Digest (G.R. No. 181833)
Facts:
- International Freeport Traders, Inc. (IFTI) is the petitioner; Danzas Intercontinental, Inc. (Danzas) is the respondent.
- In March 1997, IFTI ordered Toblerone chocolates and assorted confectioneries from Jacobs Suchard Tobler Ltd. in Switzerland via Colombo Merchants Phils., Inc.
- The delivery term was "F.O.B. Ex-Works."
- Jacobs engaged Danmar Lines of Switzerland for shipping, which issued negotiable house bills of lading signed by Danzas.
- The bills listed Jacobs as the shipper, China Banking Corporation as the consignee, and IFTI to be notified.
- Goods were to be delivered at the Clark Special Economic Zone, with Manila as the port of discharge, covered by Letters of Credit under a "freight collect" arrangement.
- Danmar contracted Orient Overseas Container Line (OOCL) for transport, which issued a non-negotiable master bill of lading stating prepaid freight with Danzas as the consignee.
- Danmar paid OOCL an arbitrary fee of US$425.00 for processing the release of the goods, which arrived on May 14, 1997.
- Danzas informed IFTI of the shipment's arrival; IFTI prepared the import permit.
- Danzas required IFTI to surrender original bills of lading and provide a bank guarantee, which IFTI initially refused.
- After negotiations, IFTI applied for a bank guarantee, approved on May 23, 1997, and secured by Danzas on June 6, 1997.
- Danzas delivered the goods on June 16, 1997, but later demanded payment of P181,809.45 for services.
- IFTI ignored the demand, prompting Danzas to file a complaint in the Metropolitan Trial Court (MeTC) of Parañaque City.
- The MeTC ruled in favor of Danzas; IFTI appealed, leading to a reversal by the Court of Appeals, which found a contract of lease of service existed between IFTI and Danzas.
Issue:
- (Unlock)
Ruling:
- The Court ruled that a contract of lease of service exists between IFTI and Danzas.
- IFTI is liable to Danzas for costs associated with the delay in the release of ...(Unlock)
Ratio:
- The Court identified multiple contracts in the transaction: between IFTI and Jacobs, Jacobs and Danmar, and Danmar and OOCL.
- Danzas acted as an agent for Danmar, responsible for delivering goods to IFTI.
- IFTI's actions, such as agreeing to provide a bank guarantee and requesting Danzas to pick up the import p...continue reading
Case Digest (G.R. No. 181833)
Facts:
The case involves International Freeport Traders, Inc. (IFTI) as the petitioner and Danzas Intercontinental, Inc. (Danzas) as the respondent. In March 1997, IFTI ordered a shipment of Toblerone chocolates and assorted confectioneries from Jacobs Suchard Tobler Ltd. of Switzerland through its Philippine agent, Colombo Merchants Phils., Inc., under the delivery term "F.O.B. Ex-Works." Jacobs engaged Danmar Lines of Switzerland to ship the goods, which issued negotiable house bills of lading signed by Danzas. The bills indicated that Jacobs was the shipper, China Banking Corporation was the consignee, and IFTI was to be notified of the shipment. The goods were to be delivered at the Clark Special Economic Zone, with Manila as the port of discharge, and were covered by Letters of Credit under a "freight collect" arrangement.
Danmar, lacking its own vessel, contracted Orient Overseas Container Line (OOCL) to transport the goods. OOCL issued a non-negotiable master bill of lading, stating that the freight was prepaid, with Danzas as the consignee. Danmar paid OOCL an arbitrary fee of US$425.00 for processing the release of the goods, which arrived in Manila on May 14, 1997. Danzas informed IFTI of the shipment's arrival, and IFTI prepared the necessary import permit. However, Danzas required IFTI to surrender the original bills of lading and provide a bank guarantee, which IFTI initially refused, claiming the letters of credit sufficed.
After some back and forth, IFTI eventually applied for a bank guarantee, which was approved on May 2...