Case Summary (G.R. No. L-24515)
Background and Circumstances
On August 11, 1962, a cargo insured by The American Insurance Company was shipped from New York aboard the M/S TOREADOR, ultimately destined for Cebu City. The general agent in the Philippines, Macondray & Co., Inc., accepted liability for the cargo, which was consigned to Atlas Consolidated Mining and Development Corporation. Upon arrival at the Port of Manila on September 18, 1962, the cargo was unloaded and subsequently loaded onto an inter-island vessel, the SS SIQUIJOR, for transport to Cebu City, where it was discharged on September 24, 1962.
Loss of Cargo and Initial Lawsuit
Upon delivery in Cebu, it was discovered that two pieces of tractor parts worth $2,834.88 were missing from the consignment. The American Insurance Company, having compensated the consignee for the loss, sought to recover this amount through a civil suit initiated on September 24, 1963, against Compania Maritima and the Visayan Cebu Terminal Co., Inc. The former was the operator of the SS SIQUIJOR, while the latter was responsible for the cargo's safekeeping at Cebu.
Amended Complaint and Dismissal
Following Compania Maritima's contention that the cargo had not been delivered to them, The American Insurance Company sought to amend their complaint on November 6, 1964, adding Macondray and Luzon Brokerage Corporation as defendants while removing Visayan Cebu Terminal Co., Inc. This amendment was accepted by the court on November 14, 1964. Subsequently, Macondray filed a motion to dismiss, arguing that the original complaint had prescribed under Section 3(6) of the Carriage of Goods by Sea Act, which stipulates a one-year period for filing a claim following delivery or the date when delivery should have occurred.
Court’s Ruling on Prescription
The Manila Court of First Instance granted Macondray’s motion to dismiss, leading to this appeal. Macondray maintained that the prescriptive period had lapsed, asserting that whether calculated from the cargo’s arrival in Manila or its discharge in Cebu, more than one year had passed before the amended complaint was filed.
Legal Principles Involved
The appellant contended that the one-year limitation imposed by the Carriage of Goods by Sea Act was inapplicable, arguing instead that the case fell under the statute of limitations outlined in the Civil Code. The appellant emphasized that the arrangement for transshipment rendered Macondray a "forwarding agent" rather than a carrier, thus suggesting that its responsibilities were confined to the initial leg of delivery.
...continue readingCase Syllabus (G.R. No. L-24515)
Case Overview
- This case involves The American Insurance Company as the plaintiff-appellant against Compania Maritima and Macondray & Co., Inc. as defendants.
- The appeal stems from an order of the Court of First Instance of Manila, which dismissed the amended complaint of The American Insurance Company on the grounds of prescription.
Factual Background
- On August 11, 1962, a cargo insured by The American Insurance Company was shipped from New York, U.S.A., aboard the vessel "M/S TOREADOR."
- The cargo, valued at $3,539.61 CIF Cebu, was consigned to Atlas Consolidated Mining and Development Corporation.
- The "M/S TOREADOR" was to discharge the cargo in Manila before transferring it to an inter-island vessel to reach Cebu.
- The vessel arrived in Manila on September 18, 1962, and the cargo was subsequently loaded onto the "SS SIQUIJOR" for transport to Cebu.
- Upon delivery in Cebu on September 24, 1962, the consignee discovered a shortage of two tractor parts valued at $2,834.88, leading to a total loss of P11,063.12.
Procedural History
- Following the loss, The American Insurance Company paid the consignee the insured value and filed a complaint on September 24, 1963, against Compania Maritima and Visayan Cebu Terminal Co., Inc.
- Compania Maritima was sued as t