Mindanao Terminal v. Phoenix Assurance Company of New York/Mcgee & Co.

Summary

Phoenix Assurance Company and McGee & Co. sued Mindanao Terminal and Brokerage Service for negligent stowage of cargo that was damaged during sea transport. The cargo, consisting of bananas and pineapples, was loaded by the stevedoring company onto M/V Mistrau but was damaged when the vessel encountered Typhoon Seth during voyage to Korea. The Regional Trial Court dismissed the complaint, finding no negligence and attributing damage to the typhoon. The Court of Appeals reversed, imposing extraordinary diligence standards on the stevedore. The Supreme Court ultimately ruled in favor of the stevedoring company, holding that stevedores are only required to exercise ordinary diligence, not the extraordinary diligence imposed on common carriers. The Court found no evidence of negligence as the loading was performed under proper supervision according to approved stowage plans, and the damage was caused by natural forces during the voyage.