Case Digest (G.R. No. 132284)
Facts:
Telengtan Brothers & Sons, Inc. v. United States Lines, Inc., G.R. No. 132284, February 28, 2006, the Supreme Court Second Division, Garcia, J., writing for the Court.Petitioner Telengtan Brothers & Sons, Inc. (doing business as La Suerte Cigar & Cigarette Factory) was sued by respondent United States Lines, Inc. (a foreign shipping company) for unpaid demurrage arising from containerized shipments that arrived in Manila between 1979 and 1980 under the then-applicable Far East Conference Tariff No. 12, which allowed a 10-day free period after arrival before demurrage charges attached.
On June 22, 1981, U.S. Lines filed Civil Case No. R-81-1196 in the Regional Trial Court (RTC) of Manila, Branch 38, alleging petitioner failed to withdraw its cargo within the 10-day free period and incurred demurrage totaling P94,000. Petitioner answered, denied liability, and lodged a compulsory counterclaim alleging that respondent had the goods unloaded from containers and stored in bonded warehouses without consent, demanding P123,738.04 in damages.
The RTC rendered judgment for U.S. Lines, finding Telengtan liable for demurrage of P99,408.00 with legal interest from filing, attorney’s fees of 20% and exemplary damages of P80,000, and dismissed the counterclaim. The RTC relied on the bills of lading (B/Ls), evidence of prior demurrage payments by petitioner, and the fact that the Bureau of Customs had authorized removal and warehousing of the goods.
Petitioner appealed to the Court of Appeals (docketed CA-G.R. CV No. 18349), which, in its Decision dated January 8, 1998, affirmed the RTC in toto. Petitioner then filed this Rule 45 petition for review on certiorari before the Supreme Court, assailing (1) the fin...(Subscriber-Only)
Issues:
- Did the Court of Appeals err in finding petitioner liable for demurrage for failure to withdraw its cargo within the 10-day free period?
- Was the trial court’s and Court of Appeals’ order to recompute the judgment “as of the date of payment” under Article 1250 of the Civil Code proper?
- Were the dismissal of petitioner’s counterclaim and the awards of exemplary damages and at...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)