Republic Flour Mills Corporation v. Forbes Factors

Summary

This commercial law case involves a dispute over demurrage payment between Republic Flour Mills and Forbes Factors. Petitioner purchased commodities from Richco through respondent as indent representative, but failed to discharge cargo timely from four vessels, incurring US$193,937.41 demurrage. When petitioner refused payment despite repeated demands, Richco debited respondent's account, creating subrogation rights. The Supreme Court affirmed lower courts' findings that respondent had legal standing to collect through subrogation under Civil Code provisions, rejecting petitioner's arguments about lack of real party-in-interest and due process violations. The case establishes important precedent on commercial subrogation rights and demurrage liability in maritime commerce transactions.