Case Digest (G.R. No. 162467)
Facts:
Mindanao Terminal and Brokerage Service, Inc. v. Phoenix Assurance Company of New York/ McGee & Co., Inc., G.R. No. 162467, May 08, 2009, Supreme Court Second Division, Tinga, J., writing for the Court.Del Monte Philippines, Inc. engaged petitioner Mindanao Terminal and Brokerage Service, Inc. (a stevedoring company) to load and stow 146,288 cartons of bananas and 15,202 cartons of pineapples owned by Del Monte Fresh Produce International, Inc. into the cargo hold of the vessel M/V Mistrau at the Port of Davao for shipment to Inchon, Korea. The shipment was insured under an "open cargo policy" issued by respondent Phoenix Assurance Company of New York with McGee & Co., Inc. acting as underwriting manager/agent.
After arrival at Inchon and discharge, surveyors from Incok Loss and Average Adjuster (through Byeong Yong Ahn) reported heavy damage: 16,069 banana cartons and 2,185 pineapple cartons were found commercially lost. Del Monte Produce filed a claim; McGee’s adjuster recommended payment of US$210,266.43, which was paid and for which Del Monte Produce issued a subrogation receipt to Phoenix and McGee.
Phoenix and McGee instituted suit for damages against Mindanao Terminal in the Regional Trial Court (RTC), Davao City, Branch 12. The RTC (Judge Paul T. Arcangel) found that Mindanao Terminal merely provided labor under the supervision and direction of the ship’s officers, that stowage followed the shipper’s stowage plan and ship officers’ inspections, and that the cargo was damaged by typhoon during transit. The RTC dismissed the complaint and awarded Mindanao Terminal P83,945.80 as actual damages and P100,000.00 as attorney’s fees.
On appeal the Court of Appeals reversed in a 29 October 2003 decision, concluding Mindanao Terminal improperly stowed the cargo and was liable under a quasi-delict theory; it ordered payment of US$210,265.45 plus interest and 20% attorney’s fees. Mindanao Terminal’s motion for reconsideration was denied in a 26 February 2004 resoluti...(Subscriber-Only)
Issues:
- Do Phoenix and McGee have a cause of action against Mindanao Terminal based on quasi-delict?
- Is a stevedoring company performing only loading and stowage obliged to observe the extraordinary degree of diligence required of common carriers and warehousemen?
- Did Mindanao Terminal observe the degree of diligence required by law in load...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)