- Petitioner
- Mitsui O.S.K. Lines Ltd.
- Respondent
- Court of Appeals
- Citation
- G.R. No. 119571
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Mendoza, J.
- Decided
- March 11, 1998
Summary
This Supreme Court case resolved whether damages from delayed delivery of goods fall under the Carriage of Goods by Sea Act's one-year prescriptive period or the Civil Code's ten-year period. Mitsui O.S.K. Lines failed to deliver Lavine Loungewear's goods from Manila to France within the promised 28 days due to transshipment delays, causing the goods to arrive during off-season and reducing their market value. The Supreme Court distinguished between physical loss/damage to goods (covered by COGSA's shorter prescription) and contractual damages from delayed delivery affecting market value (governed by Civil Code's longer prescription). The Court affirmed that the action was not barred by COGSA's one-year limitation, establishing important precedent for maritime law regarding the scope of 'loss or damage' under COGSA versus general contract breach remedies.