Title
Unsworth Transport International , Inc. vs. Court of Appeals
Case
G.R. No. 166250
Decision Date
Jul 26, 2010
A shipment of pharmaceutical materials was damaged during transport. UTI, as a common carrier, was held liable for negligence, with liability capped at $500 per package under COGSA. Pioneer Insurance, subrogated to Unilab's rights, recovered damages.

Case Digest (G.R. No. 166250)
Expanded Legal Reasoning Model

Facts:

  • Contract of carriage and insurance
    • On August 31, 1992, Sylvex Purchasing Corporation delivered to Unsworth Transport International (Philippines), Inc. (UTI) a shipment of 27 drums and related cargo for pharmaceutical manufacturing, covered by Bill of Lading No. C320/C15991-2.
    • The shipment was insured in favor of United Laboratories, Inc. (Unilab) with Pioneer Insurance and Surety Corporation under Marine Risk Note No. MC RM UL 0627 92 and Open Cargo Policy No. HO-022-RIU, for P1,779,664.77.
  • Transportation and initial surveys
    • The shipment was loaded in a sealed 40’ container (APLU-982012) on APL’s M/V “Pres. Jackson,” transshipped to M/V “Pres. Taft,” and arrived at Manila on September 30, 1992.
    • On October 6, 1992, UTI received the container in its warehouse after stamping the import permit.
  • Damage discovery and surveys
    • On October 9, 1992, Oceanica Cargo Marine Surveyors Corporation reported one drum with a cut/hole and 1% spillage; the rest were intact.
    • On October 15, 1992, Jardine Davies Transport Services issued Gate Pass No. 7614 indicating 22 drums “in good order” loaded for delivery.
    • Upon delivery to Unilab’s warehouse the same day, J.G. Bernas Adjusters & Surveyors found one torn bag, one punctured drum (content lacking), and five drums short-delivered; final inspections on October 23 and 28 confirmed these findings.
  • Claim and judicial proceedings
    • On November 7, 1992, Unilab filed a damage claim against Pioneer and UTI; UTI denied liability on November 20, and Pioneer paid on March 23, 1993.
    • Pioneer, via subrogation, sued APL, UTI, and UTI’s successor (Unsworth Transport Int’l, Phils.) in RTC Makati (Civil Case No. 93-3473).
    • On February 22, 2001, the RTC awarded Pioneer P76,231.27 plus 6% interest and 25% attorney’s fees. The CA affirmed on April 29, 2004 and denied reconsideration on November 26, 2004.

Issues:

  • Did the Court of Appeals act with grave abuse of discretion in upholding the award of P76,231.27 plus legal interest and attorney’s fees?
  • Is UTI a common carrier by virtue of issuing the bill of lading?
  • Did UTI exercise the required ordinary (or extraordinary) diligence in caring for the shipment?
  • Did Pioneer sufficiently establish the damage to its cargo?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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