Virgines Calvo Doing Business Under the Name v. Ucpb General Insurance Co.

Summary

This case involves the liability of a customs broker operating as a common carrier for damaged cargo. Virgines Calvo, doing business as Transorient Container Terminal Services, transported paper products for San Miguel Corporation from Manila Port to their warehouse. The cargo sustained damage valued at P93,112.00 during transit. UCPB General Insurance, having paid SMC under an insurance contract, sued Calvo as subrogee. The Supreme Court affirmed lower court decisions holding Calvo liable as a common carrier who failed to exercise extraordinary diligence required under Article 1733 of the Civil Code. The Court rejected Calvo's argument that she was merely a private carrier, ruling that transportation was integral to her business. Since Calvo accepted the cargo without exception despite apparent container defects and failed to prove extraordinary diligence, the presumption of negligence under Article 1735 applied. The decision reinforces that common carriers bear extraordinary responsibility for cargo damage and must prove they exercised utmost diligence to avoid liability.