Case Digest (G.R. No. 131621)
Facts:
In Loadstar Shipping Co., Inc. v. Court of Appeals, petitioner Loadstar Shipping Co., Inc. received on November 19, 1984 aboard its vessel M/V *Cherokee* three consignments of lumber products—705 bales of lawanit hardwood, 27 boxes and crates of tilewood assemblies, and 49 bundles of moldings—valued at ₱6,067,178. These goods were insured for the same amount with Manila Insurance Co. (MIC) against various risks, including “total loss by total loss of the vessel.” The vessel itself was insured by Prudential Guarantee & Assurance, Inc. (PGAI) for ₱4 million. On November 20, 1984, en route from Nasipit, Agusan del Norte to Manila, the M/V *Cherokee* sank off Limasawa Island, resulting in a total loss of its cargo. The consignee’s demand for indemnity was ignored by Loadstar, prompting MIC to pay ₱6,075,000 to the assured and secure a subrogation receipt. On February 4, 1985, MIC sued Loadstar and PGAI in the Regional Trial Court (RTC) of Manila, Branch 16, alleging carrier negligenCase Digest (G.R. No. 131621)
Facts:
- Background
- Loadstar Shipping Co., Inc. (LOADSTAR) acted as carrier and filed the petition.
- Manila Insurance Co., Inc. (MIC) was the cargo insurer and private respondent.
- Shipment and insurance
- On 19 November 1984, LOADSTAR received on board M/V “Cherokee”:
- 705 bales of lawanit hardwood
- 27 boxes/crates of tilewood assemblies and related items
- 49 bundles of mouldings R & W Apitong Bolidenized
- The vessel itself was insured by Prudential Guarantee & Assurance, Inc. (PGAI) for ₱4,000,000.
- Voyage and loss
- On 20 November 1984, en route from Nasipit to Manila, the vessel sank off Limasawa Island, resulting in total loss of cargo.
- MIC paid ₱6,075,000 to the insured and obtained a subrogation receipt.
- Procedural history
- On 4 February 1985, MIC sued LOADSTAR and PGAI for negligence; PGAI was later dismissed after payment.
- On 4 October 1991, the RTC ordered LOADSTAR to pay MIC ₱6,067,178 plus interest, ₱8,000 attorneys’ fees, and costs.
- On 30 January 1997, the Court of Appeals affirmed the RTC decision; on 19 November 1997, it denied reconsideration.
- LOADSTAR filed a Rule 45 petition seeking reversal of the CA decision.
Issues:
- Carrier classification
- Whether M/V “Cherokee” was a private carrier or a common carrier.
- Loadstar’s liability
- Whether LOADSTAR exercised due and ordinary diligence (seaworthiness, crew competence).
- Whether the “owner’s risk” limitation in the bill of lading exempted LOADSTAR from liability.
- Prescription
- Whether MIC’s cause of action was barred by the sixty-day claim period in the bill of lading.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)