G.R. No. 200289 - Westwind Shipping Corp. vs. UCPB General Insurance Co., Inc.

On August 23, 1993, Kinsho-Mataichi Corporation shipped 197 metal containers/skids of tin-free steel from Kobe, Japan to San Miguel Corporation (SMC) under Bill of Lading No. KBMA-1074, loaded clean on board M/V Golden Harvest Voyage No. 66, owned and operated by Westwind Shipping Corporation (Westwind).
SMC insured the cargo with UCPB General Insurance Co., Inc. (UCPB) for US$184,798.97 (equivalent to P6,209,245.28 at the time).

The shipment arrived in Manila on August 31, 1993 and was discharged under the custody of Asian Terminals, Inc. (ATI), the arrastre operator.
During unloading, six containers/skids were dented and punctured by a forklift operated by Ocean Terminal Services, Inc. (OTSI) stevedores, with damage valued at P117,093.12. Baliwag Shipping Agency, the vessel’s local agent, issued two Bad Order Cargo Receipts dated September 1, 1993.

On September 7, 1993, Orient Freight International, Inc. (OFII), SMC’s customs broker, withdrew all 197 containers/skids from ATI and delivered them via J.B. Limcaoco Trucking (JBL) to SMC’s warehouse in Calamba, Laguna.
Upon delivery, nine additional containers/skids were found damaged (valued at P175,639.68), bringing the total to 15 bad-order units.

On August 15, 1994, SMC filed a claim against UCPB, Westwind, ATI, and OFII for recovery of the losses to the 15 containers/skids.
UCPB paid P292,732.80 to SMC and obtained a subrogation receipt; on August 30, 1994, UCPB filed a complaint for damages against Westwind, ATI, and OFII.

The Manila City RTC (Branch 30) dismissed UCPB’s complaint and counterclaims of Westwind, ATI, and OFII, ruling that the claim against ATI was prescribed, Westwind had no liability for stevedoring damage, and OFII merely facilitated delivery as customs broker.
On September 13, 2011, the Court of Appeals (CA) reversed the RTC: it held the claim against ATI prescribed, but ruled Westwind liable for the six damaged containers/skids and OFII liable for the nine additional units, ordering payment with legal interest. Westwind and OFII then filed petitions for certiorari under Rule 45.

Whether Westwind, as carrier under the bill of lading and COGSA, remained liable for cargo damage during unloading by ATI’s stevedores.
Whether OFII, a customs broker, is a common carrier liable under the Civil Code for damage to containers during delivery to the consignee.
Whether the claim against ATI was barred by prescription under applicable rules and stipulations.