GR 168402; (August, 2008) (Digest)
G.R. No. 168402; August 6, 2008
ABOITIZ SHIPPING CORPORATION, petitioner, vs. INSURANCE COMPANY OF NORTH AMERICA, respondent.
FACTS
Respondent Insurance Company of North America (ICNA) issued an “all-risk” marine insurance policy to MSAS Cargo International for a shipment of wooden work tools and workbenches consigned to Science Teaching Improvement Project (STIP) in Cebu. The cargo was transshipped from Hamburg, Germany, and upon arrival in Manila, petitioner Aboitiz Shipping Corporation received the container van, noting “grounded outside warehouse” on its bill of lading. The cargo was later stripped and re-stuffed into another container for shipment to Cebu. Upon delivery in Cebu, the consignee discovered the cargo was water-damaged, with corroded tools and disintegrated packing. The consignee filed a claim with Aboitiz, which was refused. ICNA subsequently paid the consignee P280,176.92 and was subrogated to the consignee’s rights. ICNA then filed a collection case against Aboitiz to recover the amount paid.
ISSUE
Whether Aboitiz Shipping Corporation is liable for the water damage sustained by the insured cargo during its custody.
RULING
Yes, Aboitiz is liable. The Supreme Court affirmed the Court of Appeals’ decision, holding that Aboitiz failed to overcome the presumption of negligence under Article 1735 of the Civil Code. As a common carrier, Aboitiz is responsible for the goods from the time they are unconditionally placed in its possession until delivery. The notation “grounded outside warehouse” on the bill of lading indicated the cargo was stored in an exposed area. The survey report attributed the water damage to heavy rains occurring while the shipment was grounded outside Aboitiz’s warehouse in Manila prior to transshipment to Cebu. This established that the loss occurred during Aboitiz’s custody. The legal subrogation of ICNA upon payment to the assured is valid, allowing it to pursue the consignee’s claim. Aboitiz’s defense that the cargo was dry when inspected was insufficient to rebut the presumption of fault, as the inspection occurred after the damage had already manifested. Consequently, Aboitiz was ordered to pay ICNA the amount of P280,176.92 with legal interest and attorney’s fees.