Eastern Shipping Lines v. The Court of Appeals

Summary

This case involves the liability of a common carrier for cargo damage during maritime transport. First Nationwide Assurance Corporation, after paying an insurance claim for damaged wire coils, sued Eastern Shipping Lines for reimbursement. The cargo was damaged when rainwater flooded the vessel's hold during rough weather. The trial court initially dismissed the case, but the Court of Appeals reversed, finding the carrier liable under Civil Code provisions requiring extraordinary diligence. The Supreme Court affirmed, ruling that rough weather was not caso fortuito but a foreseeable risk that carriers must prepare for. The decision establishes that common carriers cannot escape liability merely by delivering cargo under clean tally sheets if evidence shows damage occurred during transport due to failure to observe extraordinary diligence.