EASTERN SHIPPING LINES INC. v. BPI/MS INSURANCE CORP.
and MITSUI
SUMITOMO INSURANCE CO. LTD. G.R. No. 193986, January 15. 2014
VILLARAMA JR., J.
DOCTRINE:
The extraordinary responsibility of a common carrier lasts from the time the
goods are unconditionally placed in the possession of, and received by the
carrier for transportation until the same are delivered, actually or
constructively, by the carrier to the consignee, or to the person who has a right
to receive them.
FACTS:
In this case, there were three shipments involved. All shipments were
made by Sumitomo Corporation through Eastern Shipping Lines involving steel
sheets in coil to be delivered to Calamba Steel Center Inc. All the subject steel
sheets in coil were insured against all risk by Sumitomo with Mitsui Sumitomo
Insurance Co. All of these shipments involved Asian Terminals, Inc. as the
arrastre operator mandated to conduct discharging operations.
The first shipment involved 31 steel sheets in coil, 9 of which were
observed to be in bad condition. When the cargo was delivered to Calamba
Steel, the damaged portion were rejected for being unfit for its intended
purpose.
The second shipment involved 28 steel sheets in coil, 11 coils were found
to be damaged. When the cargo was delivered to Calamba Steel, the damaged
portion were likewise rejected for the same reason, being unfit for its intended
purpose.
The third and last shipment involved 117 steel sheets in coil, 6 of which
were observed to be in bad condition. When the cargo was delivered to
Calamba Steel, the damaged portion were also rejected for the same reason as
to the first two shipments.
Calamba Steel then filed an insurance claim with Mitsui through the
latter’s settling agent, BPI/MS Insurance Corporation , and the former was
paid for the damage suffered by all three shipments for the total amount of
US$30,210.32. Correlatively, as insurer and subrogee of Calamba Steel, Mitsui
and BPI/MS filed a complaint for damages against Eastern Shipping and ATI.
ISSUE:
Are Eastern Shipping Lines, Inc. and Asian Terminals, Inc. solidarily
liable on account of the damage incurred by the goods?
RULING:
Yes.
Even though the cargoes were already in bad condition before the subject
shipments were turned over to ATI due to damage sustained during the sea
voyage; there was also negligence on the part of the employees of ATI and
Eastern Shipping Lines, Inc. in the discharging of the cargo as observed by
BPI/MS Insurance Corporation’s witness, Manuel. Manuel stated that during
unloading, the steel coils were lifted from the vessel and not carefully laid on
the ground, sometimes were even ‘dropped’ while still several inches from the
ground. The tine or the portion that carries the coils used for the forklift is
improper because it is pointed and sharp and the centering of the tine to the
coils were negligently done such that the pointed and sharp tine touched and
caused scratches, tears and dents to the coils. Some of the coils were also
dragged by the forklift instead of being carefully lifted from one place to
another. Some coils bump/hit one another at the pier while being arranged by
the stevedores/forklift operators of ATI and Eastern Shipping Lines.
Common carriers, from the nature of their business and for reasons of
public policy, are bound to observe extraordinary diligence in the vigilance over
the goods transported by them. As such, as a general rule, they are presumed
to have been at fault or negligent if the goods they transported deteriorated or
got lost or destroyed. In order to avoid responsibility for any loss or damage,
therefore, they have the burden of proving that they observed such high level of
diligence. Here, the petitioner failed to hurdle such burden. Thus, they are
presumed to have been at fault or negligent since the goods are damaged.
