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Asian Terminals vs. Philam Insurance

1) Philam Insurance insured a shipment of chassis from Japan to Manila for Universal Motors. 2) Upon arrival in Manila, Asian Terminals unloaded the cargo from the ship under the supervision of Westwind Shipping. Asian Terminals' report noted that 7 of the 120 chassis were damaged. 3) Philam, having paid Universal Motors' insurance claim, sought to recover damages from Asian Terminals and Westwind Shipping. The Supreme Court ultimately ruled that both companies failed to exercise extraordinary diligence in handling the cargo and were liable for the damages.

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Theodore Dolar
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532 views2 pages

Asian Terminals vs. Philam Insurance

1) Philam Insurance insured a shipment of chassis from Japan to Manila for Universal Motors. 2) Upon arrival in Manila, Asian Terminals unloaded the cargo from the ship under the supervision of Westwind Shipping. Asian Terminals' report noted that 7 of the 120 chassis were damaged. 3) Philam, having paid Universal Motors' insurance claim, sought to recover damages from Asian Terminals and Westwind Shipping. The Supreme Court ultimately ruled that both companies failed to exercise extraordinary diligence in handling the cargo and were liable for the damages.

Uploaded by

Theodore Dolar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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36 Asian Terminals vs.

Philam Insurance subsequently confirming the


G.R. Nos. 181163, 181262, and 181319| damages to the products.
July 24, 2013| Villarama  Philam gave the insurance of
Digested by: Dolar, Theodore Adriel S. Universal Motors, and Philam was
subsequently subrogated the rights
Topic: COGSA of the latter.
 Philam then filed before the RTC a
Doctrine: A report for damages must be complaint against Westwind and ATI
issued before the consummation of the to compensate for the damages to
delivery. the products on the grounds that
they failed to exercise extraordinary
Emergency Recit: Respondent had insured diligence to care for the said
a shipment of chassis bound for Manila. merchandise.
Upon arrival, the insured reported that there  The RTC ruled in favor of Philam.
was damage to the shipment. After paying  This was affirmed by the CA. Hence,
the insurance thereon and being subrogated the instant case.
the rights if the insured, Respondent sought
to recover from the Petitioners. The SC ISSUE
ultimately upheld the claim, ruling that both Whether Westword and ATI are liable for
the Petitioners were negligent in the the damaged chassis. - YES
handling of the shipment.
HELD
FACTS YES. Both Westwind and ATI should have
 Universal Motors Corporation observed extraordinary diligence in handling
purchased 219 units of packages, the said merchandise on account to their
from Nichimen Corporation in Japan. value and difficulty of acquisition.
 120 of these packages contained
chassis for Nissan Pickup Trucks. Sec. 3 (6) COGSA contemplated that the
 The shipment was loaded on the S/S removal of the goods to the custody of the
Calayan Iris which was bound for person entitled to the delivery is the prima
Manila. facie evidence of the consummation of the
 Philam Insurance Co., Inc. insured delivery unless a report of damages or
the shipment in favor of Universal general nature of damages is issued in
Motors. writing before the delivery was said
 On April 20, 1995 when the vessel consummated.
arrived, Asian Terminals. Inc.
handled the unloading of the cargo Both the RTC and the CA found that ATI
of the said packages, supervised by employees were the ones handling the
Westwind Shipping Corporation. unloading of the cargo, and that they
 The unloaded cargo was then erroneously chose the inappropriate
brought to the custody of ATI for equipment, a sling, to secure the cargo as it
inspection. was too taut and short hence crushing the
 ATI released a Bad Order Survey subject cargo. Westwind was supervising
Report stating that 7 of the 120 the entire operation of ATI. These facts
chassis delivered were damaged. collectively glean that both Petitioners have
 R.F. Revilla Customs Brokerages, solidary liability over the damages, for
Inc., the authorized broker of failure to exercise extraordinary diligence,
Universal Motors withdrew the said where slight negligence is enough to incur
chassis from ATI for its own survey, any liability. Philam, having been
subrogated the rights of Universal Motors, is
thus, entitled to recover from the Petitioners’
over the damaged cargo.

PETITION is DENIED. The Decision of the


CA is affirmed.

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