Bayne Adjusters v. Court of Appeals

Summary

Bayne Adjusters and Surveyors, Inc. was contracted to supervise the discharge of imported alkyl benzene cargo from Japan. During pumping operations in June 1987, mechanical pump problems caused multiple interruptions. When the surveyor left the premises during a breakdown without sealing valves or leaving instructions, barge operators later resumed unsupervised pumping, causing an overflow that resulted in the loss of 67.649MT of alkyl benzene valued at P811,609.53. Insurance Company of North America, as subrogee of consignee Colgate Palmolive, sued for damages. Both trial and appellate courts found Bayne Adjusters negligent for failing to follow Standard Operating Procedures for liquid bulk cargo handling. The Supreme Court affirmed, ruling that the surveyor's failure to exercise due diligence by not sealing valves and leaving proper instructions was the proximate cause of the loss, making petitioner liable under Civil Code provisions on contractual negligence.