Fortune Sea Carrier v. Bpi/Ms · G.R. 209118

Petitioner: Fortune Sea Carrier
Respondent: Bpi/Ms Insurance Corporation
Citation: G.R. No. 209118
Court: Supreme Court
Division: Third Division
Ponente: Mendoza, J.
Decided: November 24, 2014

Summary

Fortune Sea Carrier transported 20,000 bags of cement for Apo Cement Corporation aboard M/V Sea Merchant. During transport to San Jose, Antique, two typhoons caused the vessel's hatch cover to misalign, allowing seawater to damage 8,077 bags worth P1,288,330.06. BPI/MS Insurance, having insured and paid for the damaged cargo, sued the carrier for reimbursement. The RTC dismissed the case, ruling the damage was caused by natural disaster beyond the carrier's control. The Court of Appeals reversed, finding the carrier failed to exercise due diligence in monitoring weather and inspecting cargo. The Supreme Court affirmed, applying the two-element test requiring both fortuitous event as sole cause and due diligence by the carrier. The Court found that while weather caused the damage, the carrier's lack of vigilance in weather monitoring and inadequate precautionary measures made it liable. The judgment ordered payment of P1,288,330.06 with 6% annual interest, establishing important precedent on common carrier liability during natural disasters.

Statutes applied

Civil Code, Art. 1734

Related cases

Other Philippine cases on the same provisions and issues.

Transimex Co. v. Mafre Asian Insurance Corp. G.R. No. 190271
Virgines Calvo Doing Business Under the Name v. Ucpb General Insurance Co. G.R. No. 148496
Keihin-Everett Forwarding Co. v. Tokio Marine Malayan Insurance Co. G.R. No. 212107
Philippine American General Insurance Company v. Pks Shipping Company G.R. No. 149038
Delsan Transport Lines v. American Home Assurance Corporation G.R. No. 149019
Iron Bulk Shipping Philippines v. Remington Industrial Sales Corporation G.R. No. 136960
Annie Tan v. Great Harvest Enterprises G.R. No. 220400
Eastern Shipping Lines v. Bpi/Ms Insurance Corp. G.R. No. 193986

By the Intellegal Editorial Board · November 24, 2014

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