Bormaheco v. Malayan Insurance Company

Summary

This case involves an insurance subrogation claim arising from cargo damage during delivery. Swiss-manufactured bakery equipment shipped to Manila Peninsula Hotel was damaged when Bormaheco's forklift operator negligently lifted the cargo while improperly balanced, causing it to fall and sustain extensive damage. Malayan Insurance, having paid the Hotel's claim, sought reimbursement from Interworld Brokerage (the contracted carrier) and Bormaheco (the forklift service provider). The Supreme Court affirmed lower court decisions holding Interworld liable to Malayan under the contract of carriage, and Bormaheco liable to Interworld for its employee's negligence. The Court also ruled that correcting the incident date in the complaint from February 13 to February 3, 1986 was merely a typographical correction permitted under procedural rules. The decision reinforces principles of contractual liability, employer responsibility for employee negligence, insurance subrogation rights, and liberal application of procedural rules for formal amendments.