Asia Lighterage v. Court of Appeals

Summary

This case involves an insurance subrogation claim where Prudential Guarantee sought recovery from Asia Lighterage after indemnifying the consignee for lost wheat cargo. The Supreme Court affirmed that Asia Lighterage is a common carrier under Civil Code Article 1732, being engaged in lighterage business offering transportation services to the public. The Court ruled that the company failed to exercise extraordinary diligence required of common carriers when it proceeded with the voyage despite knowledge of the barge's prior damage and an incoming typhoon. The total loss of cargo resulted from negligence rather than force majeure, making the carrier liable for the full indemnity amount less salvage value.