Keihin-Everett Forwarding Co. v. Tokio Marine Malayan Insurance Co.

Summary

This Supreme Court case involves insurance subrogation and common carrier liability for hijacked cargo. Honda Trading's aluminum ingot shipment was hijacked while being transported by Sunfreight Forwarders under contract with Keihin-Everett. Tokio Marine, having paid the insurance claim, sued Keihin-Everett for reimbursement. The Supreme Court affirmed that Keihin-Everrett, as the common carrier contracted by Honda Trading, remained liable despite the cargo being in Sunfreight Forwarders' custody when hijacked. The Court established that hijacking is not a fortuitous event exempting common carriers from liability, and that legal subrogation occurs upon payment of insurance claims. Keihin-Everett was held liable with right of reimbursement from Sunfreight Forwarders under their accreditation agreement. The decision clarifies common carrier obligations, insurance subrogation principles, and the distinction between solidary liability and reimbursement rights in commercial transportation contracts.