Title
International Freeport Traders, Inc. vs. Danzas Intercontinental, Inc.
Case
G.R. No. 181833
Decision Date
Jan 26, 2011
IFTI ordered chocolates from Switzerland; delayed release due to document issues led to charges. SC ruled IFTI liable for fees, affirming CA decision.
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Case Summary (G.R. No. 181833)

Background of the Case

  • Petitioner: International Freeport Traders, Inc. (IFTI)
  • Respondent: Danzas Intercontinental, Inc. (Danzas)
  • Nature of the case: Liability of the consignee for electric charges, demurrage, and storage fees based on a service lease contract with a cargo handler.
  • Shipment details: Toblerone chocolates and assorted confectioneries ordered from Jacobs Suchard Tobler Ltd. of Switzerland, with delivery terms "F.O.B. Ex-Works."
  • Involvement of multiple parties: Jacobs, Danmar Lines, and Orient Overseas Container Line (OOCL) in the shipping process.

Sequence of Events

  • Shipment initiated in March 1997, with Jacobs engaging Danmar for delivery.
  • Danmar contracted OOCL for shipping; OOCL issued a non-negotiable master bill of lading.
  • Goods arrived in Manila on May 14, 1997; Danzas informed IFTI of the arrival.
  • IFTI prepared the import permit and advised Danzas to pick it up on May 20, 1997, but Danzas collected it on May 26, 1997.
  • Danzas required original bills of lading and a bank guarantee from IFTI for the release of goods.

Dispute Over Charges

  • IFTI claimed that letters of credit covered the shipment, while Danzas insisted on a bank guarantee.
  • IFTI eventually applied for a bank guarantee, which was secured on May 23, 1997, but Danzas only collected it on June 6, 1997.
  • IFTI requested the release of goods pending payment of charges, promising to pay within five days.
  • Danzas released the goods on June 13, 1997, and later billed IFTI for P181,809.45 for handling the shipment.

Legal Proceedings

  • Danzas filed a complaint against IFTI for non-payment.
  • IFTI countered that it had no liability, asserting it was not privy to Danzas' hiring.
  • The Metropolitan Trial Court (MeTC) ruled in favor of Danzas, ordering IFTI to pay the claimed amount.
  • IFTI appealed, but the Regional Trial Court (RTC) dismissed the complaint.

Court of Appeals Decision

  • The Court of Appeals reversed the RTC decision, finding that a perfected contract of lease of service existed between IFTI and Danzas.
  • The court noted that IFTI's actions indicated acceptance of Danzas' services, including the provision of a bank guarantee.

Existence of Contract

  • The court identified multiple contracts among IFTI, Jacobs, Danmar, and OOCL.
  • Danzas acted as an agent for Danmar, responsible for the final delivery of goods to IFTI.
  • IFTI's compliance with Danzas' requirements indicated acceptance of the service contract.

Elements of a Contract

  • The court outlined the essential elements of a contract: consent, object, and cause.
  • It concluded that the parties entered into a contract of lease of service for the clearing and delivery of goods.

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