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Eastern Shipping v. CA - Digest

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18 views2 pages

Eastern Shipping v. CA - Digest

Uploaded by

Chi
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 PDF, TXT or read online on Scribd
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Eastern Shipping Lines, Inc. v.

Court of Appeals

Facts:

On September 4, 1978, thirteen(13) coils of uncoated 7-wire stress relieved wire strand from
prestressed concrete were shipped on board the vessel named "Japri Venture" owned and
operated by the defendant from Kobe, Japan, for delivery to Stresstek Post-Tensioning Phils.,
Inc. Manila. On September 16, 1978, the carrying vessel arrived in Manila and discharged the
cargo to the custoy of the defendant, E. Razon, Inc. which in turn delivered the same to the
consignee's warehouse. On February 19, 1979, Eastern Shipping Lines (the plaintiff),
indemnified the consignee in the amount of P171,923.00 for damage and loss to the insured
cargo, whereupon the former was subrogated for the latter.

It appears that while enroute from Japan to Manila, the carrying vessel encountered very rough
seas and stormy wheather for three (3) days which caused it to roll and pound. The said coils
were wrapped in burlap cloth and cardboard paper and were stored in the lower part of the
vessel which was flooded for about one(1) foot deep. Upon arriving at Manila, it was found out
that seven coils were rusty and on one side each; and that upon surveying on the consignee's
warehouse, it was found that the wetting of cargo was due to fresh water due to the heavy
storm the vessel went through; and that all of the thirteen(13) coils were extremely rusty and
totally unsuitable for the intended purpose.

Thereafter, a complaint was filed by the First Nationwide Assurance Corporation


(Insurer/private respondent) against the Plaintiff herein and E. Razon Inc.,. However, the same
was dismissed by the RTC but the same was then set aside by the Court of Appeals, ordering
the plaintiff herein and E. Razon to pay the private respondent. Only the Plaintiff herein filed for
certiorari.

Issue:

W/N the Eastern Shipping Lines Inc., should be held liable.

Ruling: YES. Eastern Shipping Lines Inc., is liable.

In its decision, the Supreme Court stated that, the heavy seas and rains referred to in the
master's report were not caso fortuito (Fortuitious event), but normal occurances that an ocean-
going vessel, particularly in the month of September which is in our area, a month of rains and
heavy seas. These are not unforeseen nor unforeseeable, which are commonly known to the
ocean going vessels. The rain water finding its way into the holds of the vessel is a clear
indication that care and foresight did not attend the closing of the ship's hatches so that rain
water would not find its way into the cargo within the ship. Lastly, since the carrier has failed to
establish any caso fortuito, the presumption by law of fault or negligence provided by civil law
shall apply; considering that the petitioner failed to provide evidence that it exercised
extraordinary diligence which is required to common carriers such as the plaintiff.

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