G.R. No. 212107 . January 28, 2019.
KEIHIN-EVERETT FORWARDING CO., INC., Petitioner, vs. TOKIO MARINE MALAYAN INSURANCE CO., INC. AND SUNFREIGHT FORWARDERS & CUSTOMS BROKERAGE, INC., Respondents.

FACTS

Honda Trading imported aluminum ingots, insured them with Tokio Marine, and engaged Keihin-Everett as a common carrier to clear and deliver the cargo from the Manila port to its Laguna warehouse. Keihin-Everett, in turn, subcontracted the inland transportation to Sunfreight Forwarders under an Accreditation Agreement. During transit, the truck carrying the shipment was hijacked, resulting in the loss of one container van and its contents. Tokio Marine, as subrogee after paying Honda Trading’s insurance claim, sued Keihin-Everett for damages.
Keihin-Everett denied liability, arguing the loss occurred while the goods were in Sunfreight’s possession, and filed a third-party complaint against Sunfreight. The Regional Trial Court held Keihin-Everett and Sunfreight jointly and severally liable. The Court of Appeals modified this, holding Keihin-Everett solely liable to Tokio Marine but with a right of reimbursement from Sunfreight. Keihin-Everett appealed to the Supreme Court.

ISSUE

Whether Keihin-Everett, as a common carrier, can be held liable for the loss of the cargo despite the hijacking and the subcontracting of the delivery to Sunfreight Forwarders.

RULING

Yes, Keihin-Everett is liable. The Supreme Court affirmed the CA’s decision. As a common carrier, Keihin-Everett is bound to observe extraordinary diligence in the vigilance over the goods it transports. The loss occurred while the cargo was in its custody, as it had not yet been delivered to the consignee’s warehouse. Hijacking is not among the exempting causes under Article 1734 of the Civil Code; thus, the presumption of negligence or fault under Article 1735 applies. Keihin-Everett failed to rebut this presumption by proving it exercised extraordinary diligence. Its argument that the loss occurred under Sunfreight’s watch is unavailing, as the relationship between Keihin-Everett and the shipper is direct and contractual. The subcontracted carrier, Sunfreight, is not privy to that contract and thus cannot be held solidarily liable to the shipper’s subrogee. However, based on their Accreditation Agreement, Keihin-Everett possesses a right of reimbursement from Sunfreight for any amount it pays to Tokio Marine. The award of attorney’s fees was also upheld, as Tokio Marine was compelled to litigate due to Keihin-Everett’s refusal to pay a valid claim.