- Petitioner
- Philippine Charter Insurance Corporation
- Respondent
- Unknown Owner of the Vessel M/V "National Honor
- Citation
- G.R. No. 161833
- Court
- Supreme Court
- Division
- Second Division
- Decided
- July 8, 2005
Summary
PCIC, an insurance company, sought subrogation against shipping companies after paying a claim for damaged machinery that fell when its wooden crate broke during unloading operations. The machinery, shipped from Korea to Manila, was contained in wooden crates that broke in the mid-section during crane lifting operations at Manila port. All three court levels ruled in favor of the defendants, finding that the damage was caused by defective packing - specifically a wooden batten with a hole that could not support the machinery's weight - rather than negligence by the carriers or arrastre operator. The Supreme Court upheld this finding, emphasizing that the case fell under Article 1734(4) of the Civil Code regarding defects in packing, and that common carriers are not absolute insurers against all risks.