Case Digest (G.R. No. 162467)
Facts:
In Mindanao Terminal and Brokerage Service, Inc. v. Phoenix Assurance Company of New York/McGee & Co., Inc. (G.R. No. 162467, May 8, 2009), Del Monte Philippines, Inc. engaged petitioner Mindanao Terminal, a stevedoring company, to load and stow 146,288 cartons of green Philippine bananas and 15,202 cartons of fresh pineapples belonging to Del Monte Fresh Produce International, Inc. onto the M/V Mistrau at Davao City for shipment to Inchon, Korea in favor of Taegu Industries, Inc. The cargo was insured under an “open cargo policy” by respondent Phoenix Assurance Company of New York and its underwriting manager/agent McGee & Co., Inc. Mindanao Terminal loaded the shipment under the supervision of the ship’s officers using materials provided by the vessel. Upon discharge at Inchon, a Marine Cargo Damage Surveyor reported that 16,069 banana cartons and 2,185 pineapple cartons were ruined. Del Monte Produce claimed under the policy, and Phoenix/McGee paid US $210,266.43, receiving aCase Digest (G.R. No. 162467)
Facts:
- Contractual Engagement and Insurance
- Del Monte Philippines, Inc. engaged Mindanao Terminal and Brokerage Service, Inc. (stevedore) to load and stow 146,288 cartons of bananas and 15,202 cartons of pineapples into M/V Mistrau at Davao City for shipment to Inchon, Korea.
- Del Monte Fresh Produce International, Inc. (assured) insured the cargo under an “open cargo policy” with Phoenix Assurance Company of New York and its agent McGee & Co., Inc.
- Voyage, Damage, and Survey
- After arrival at Inchon, 16,069 banana cartons and 2,185 pineapple cartons were found commercially damaged.
- Marine Cargo Damage Surveyor Incok Loss and Average Adjuster of Korea, through Byeong Yong Ahn, attributed damage to heavy rolling and pitching during a typhoon.
- Insurance Claim and Litigations
- Del Monte Produce filed a claim; McGee’s adjuster recommended payment of US$210,266.43. A check was sent and a subrogation receipt issued to Phoenix and McGee.
- Phoenix and McGee sued Mindanao Terminal in RTC Davao City.
- RTC (Oct. 20, 1999) found Mindanao Terminal merely followed ship officers’ directions, observed proper stowage per plan, and that damage was typhoon-caused.
- RTC dismissed complaint, awarded Mindanao Terminal actual damages (P83,945.80) and attorney’s fees (P100,000).
- Court of Appeals (Oct. 29, 2003) reversed: held Mindanao Terminal liable for improper stowage, required extraordinary diligence, and allowed quasi-delict action, ordering payment of US$210,265.45 plus interest and 20% attorney’s fees.
- CA denied reconsideration (Feb. 26, 2004). Mindanao Terminal petitioned the Supreme Court.
Issues:
- Whether Mindanao Terminal was negligent in loading and stowing the cargo, rendering it liable for damages.
- Whether Phoenix and McGee have a cause of action against Mindanao Terminal under Article 2176 (quasi-delict).
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)