- Petitioner
- Sea-Land Service
- Respondent
- Intermediate Appellate Court
- Citation
- G.R. No. 75118
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Narvasa, J.
- Decided
- August 31, 1987
Summary
Sea-Land Service Inc. shipped cargo from California to Cebu consigned to Paulino Cue. The shipment was stolen in Manila during transshipment. Cue claimed P179,643.48 while Sea-Land offered only US$4,000 based on a $500 per package limitation clause in the bill of lading. Lower courts awarded full claimed amount, but the Supreme Court reversed, holding that consignees are bound by liability limitation stipulations in bills of lading even when not direct parties to the shipping contract. The Court applied Civil Code provisions and the Carriage of Goods by Sea Act, ruling such limitations valid when shippers can declare higher values. Sea-Land was ordered to pay only P32,000 (US$4,000 at P8.00 conversion rate), establishing important precedent on maritime carrier liability limits in international shipping contracts.