Case Summary (G.R. No. 70648)
Applicable Law
The applicable law in this case is primarily rooted in the Civil Code of the Philippines, particularly provisions concerning common carriers and contracts of carriage, specifically Articles 1733, 1735, and 2208.
Background of the Case
The case involves agreements signed on June 5, 1987, between the Department of Health (DOH) of the Philippines and Cooperative for American Relief Everywhere, Inc. (CARE) for the transport of donated food products. NTFC entered into a contract of carriage with the government to transport 4,868 bags of non-fat dried milk via LSC. The goods were delivered to the designated consignee, Abdurahman Jama, in Zamboanga City, but discrepancies emerged regarding the actual receipt of the goods by NTFC.
Court Proceedings and Initial Ruling
The Regional Trial Court (RTC) of Manila found in favor of LSC, dismissing NTFC’s complaint and ordering NTFC to pay damages to LSC based on a counterclaim. NTFC appealed this decision to the Court of Appeals, asserting that the RTC erred in not finding LSC liable for the non-delivery of the goods and in granting damages to LSC.
Key Issues for Resolution
The issues presented for resolution included: (1) whether LSC was presumed to be at fault or negligent regarding the loss of goods as a common carrier; and (2) whether actual damages and attorney’s fees were rightly awarded to LSC.
Legal Presumption of Negligence
Under Article 1735 of the Civil Code, common carriers are presumed to be at fault unless they prove that they exercised extraordinary diligence. NTFC posited that Jama’s failure to testify and the inconsistencies in LSC's agents’ accounts did not negate the legal presumption of negligence on LSC’s part. However, LSC demonstrated adherence to proper procedures, including requiring certified true copies of bills of lading and obtaining delivery receipts.
Conclusion on Negligence
The Court found that LSC satisfactorily proved that it exercised extraordinary diligence in the delivery process, absolving it from the presumption of negligence. Abdurahman’s instructions to his subordinates to sign delivery receipts further supported this finding. The absence of Jama's testimony was not detrimental to LSC’s defense as the evidence presented indicated compliance with standard practices for a common carrier.
Damages and Attorney’s Fees
On the issue of damages, NTFC argued against the validity of the awarded actual damages and attorney's fees to LSC. The Court recognized that the right to litigate should not incur a premium and found no malicious intent in NTFC’s filing of the suit, as it sought t
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Case Overview
- This case involves a petition for review on certiorari filed by National Trucking and Forwarding Corporation (NTFC) against Lorenzo Shipping Corporation (LSC).
- The case concerns the affirmation of a lower court's decision regarding the handling and delivery of goods, specifically 4,868 bags of non-fat dried milk.
- The main legal principles at stake relate to the standards of diligence required of common carriers and the presumption of negligence in cases of lost or damaged goods.
Background Facts
- An agreement was signed on June 5, 1987, between the Republic of the Philippines, through the Department of Health (DOH), and Cooperative for American Relief Everywhere, Inc. (CARE) for the acquisition and distribution of food products.
- NTFC entered into a contract for the carriage of goods to transport the donated products, shipping the milk via LSC from September to December 1988.
- Upon arrival at the port of Zamboanga City, LSC's agent delivered the goods to Abdurahman Jama, the branch supervisor of NTFC.
- Abdurahman presented certified true copies of the bills of lading instead of the originals as required, and he occasionally had subordinates sign delivery receipts on his behalf.
- Despite these deliveries, NTFC claimed they did not receive the goods, leading them to file a formal claim and later a lawsuit for breach of contract against LSC.
Procedural History
- The Regional Trial Court (RTC) of Manila