Asian Terminals v. Allied Guarantee Insurance

Summary

This maritime cargo damage case involved liability for 212 damaged rolls of kraft linear board worth P755,666.84 during transport from the US to Manila. Allied Guarantee Insurance, after paying the consignee San Miguel Corporation, sued the entire transport chain including shipping company Transocean, arrastre operator Asian Terminals Inc. (formerly Marina Port Services), and customs broker Dynamic Brokerage. The Supreme Court affirmed lower courts' findings that ATI was jointly and severally liable with Dynamic for additional damage to 54 rolls occurring during arrastre operations and cargo transfer, as ATI failed to prove it exercised due diligence and evidence showed damage occurred during improper loading using 'grabbed lift' equipment. However, the Court deleted the attorney's fees award, ruling that mere litigation constraint was insufficient justification under Civil Code Article 2208. The decision reinforces that arrastre operators must observe the same diligence standards as common carriers and warehousemen.