- Petitioner
- Republic of the Philippines
- Respondent
- Lorenzo Shipping Corporation
- Citation
- G.R. No. 153563
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Quisumbing, J.
- Decided
- February 7, 2005
Summary
This case involves a breach of contract of carriage claim by government agencies against Lorenzo Shipping Corporation for alleged non-delivery of 4,868 bags of donated milk products. The Supreme Court affirmed that the common carrier properly delivered the goods and exercised extraordinary diligence, as evidenced by requiring certified copies of bills of lading and obtaining signed delivery receipts from the consignee. However, the Court deleted the trial court's award of damages and attorney's fees to the shipping company, finding that the government's lawsuit, though unsuccessful, was filed in good faith to protect its credibility with international relief organizations. The decision clarifies common carrier obligations and the standards for awarding attorney's fees in commercial disputes.