Petitioner
Telengtan Brothers & Sons
Respondent
United States Lines
Citation
G.R. No. 132284
Court
Supreme Court
Division
Second Division
Ponente
Garcia, J.
Decided
February 28, 2006

Summary

Telengtan Brothers & Sons, Inc. sued U.S. Lines over demurrage charges totaling P94,000 for delayed cargo withdrawal from containers beyond the 10-day free period under Far East Conference Tariff provisions. U.S. Lines, with Bureau of Customs authorization, stripped containers and warehoused the goods when Telengtan failed to take delivery. The trial court found Telengtan liable, noting its previous demurrage payments created estoppel and that the warehouse storage was necessary due to Telengtan's delay. The Supreme Court affirmed but modified the decision by rejecting the application of Civil Code Article 1250 on extraordinary inflation, finding no evidence of such phenomenon since 1981. The case establishes important precedents on demurrage liability, Bills of Lading interpretation, and the requirements for proving extraordinary inflation in commercial disputes.

Statutes applied

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By the Intellegal Editorial Board · February 28, 2006

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