- Petitioner
- Besta Shipping Lines
- Respondent
- Prudential Guarantee
- Citation
- G.R. No. 242697
- Court
- Supreme Court
- Division
- Second Division
- Decided
- September 23, 2020
Summary
This commercial law case involves a subrogation claim by Prudential Guarantee and Assurance, Inc. against Besta Shipping Lines, Inc. for damaged cargo belonging to General Milling Corporation. The Supreme Court affirmed lower court decisions holding Besta liable, ruling that the insurance company established all elements of subrogation. The Court rejected Besta's defenses, finding that the Charter Agreement purporting to absolve liability was inadmissible under the Best Evidence Rule, claims were timely filed, and Besta failed to prove extraordinary diligence required of common carriers. The decision reinforces the strict liability standard for common carriers under Article 1735 of the Civil Code and the importance of proper documentary evidence in commercial disputes.