Coastwise Lighterage Corporation v. Court of Appeals

Summary

Coastwise Lighterage Corporation transported molasses for Pag-asa Sales, Inc. from Negros to Manila. When their barge struck a sunken object and contaminated the cargo, Philippine General Insurance Company paid P700,000.00 to the consignee and sued Coastwise for reimbursement. The Supreme Court affirmed lower courts, ruling that Coastwise remained a common carrier under the affreightment contract (not converted to private carrier), failed to exercise extraordinary diligence by using an unlicensed patron in violation of maritime law, and that the insurer was properly subrogated to the consignee's rights against the carrier upon payment of the claim under Civil Code Article 2207.