Facts:

• On August 10, 1951, Delta Photo Supply Company of New York shipped six cases of films and photographic supplies on board the M/S "FERNSIDE" from New York to Cebu, Philippines, consigned to I. V. Binamira.
• The shipment was covered by Bill of Lading No. 29.
• The ship arrived in Cebu on September 23, 1951, and discharged its cargo on September 23 and 24, 1951.
• The cargo was placed in the possession and custody of the arrastre operator, Visayan Cebu Terminal Company, Inc.
• Petitioner Lu Do & Lu Ym Corporation, as the carrier's agent, hired Cebu Stevedoring Company, Inc. to unload the cargo.
• Both the stevedoring company and the arrastre operator checked the cargo and found it in good order and condition upon discharge.
• On September 26, 1951, Binamira took delivery of the six cases from the arrastre operator and discovered signs of pilferage.
• Marine surveyors R. J. del Pan & Company, Inc. examined the cases and found that some films and photographic supplies valued at P324.63 were missing.
• Binamira filed an action in the Court of First Instance of Cebu to recover the value of the missing shipment, actual and compensatory damages, and moral and pecuniary damages.
• The court ordered the defendant to pay P216.84 with legal interest.
• The Court of Appeals affirmed the judgment, leading to the present petition for review.

Issue:

• (Unlock)

Ruling:

• The Supreme Court reversed the decision of the Court of Appeals, ruling that the carrier is not responsible for the loss in question, as it occurred after ...(Unlock)

Ratio:

• The Court reasoned that while a common carrier is generally responsible for the loss, destruction, or deterioration of goods it carries, this responsibility only applies while the goods are in the carrier's possession.
• The extraordinary diligence required of carriers lasts from the time the goods are placed in their possession until they are delivered to the consignee or the person entitled to receive them.
• However, the part...continue reading