G.R. No.148496 March 19, 2002 Calvo v. UCPB Gen Insurance Co.

FACTS: At the time material to this case, Transorient Container Terminal Services, Inc. (TCTSI) owned by Virgines Calvo entered into a contract with San ig!el Cor"oration (S C) #or the trans#er o# $$% reels o# semi&chemical #l!ting "a"er and $'% reels o# (ra#t liner board #rom the )ort Area in anila to S C*s wareho!se at the Tabacalera Com"o!nd, +om!alde, St., -rmita, anila. o The cargo was ins!red by res"ondent .C)/ 0eneral Ins!rance Co., Inc.

1!ly $%, $223: arrived in anila on board 4 5V 6aya(awa ar!4 and later on !nloaded #rom the vessel to the c!stody o# the arrastre o"erator, anila )ort Services, Inc 1!ly '7 to 1!ly '8, $223: Calvo withdrew the cargo #rom the arrastre o"erator and delivered it to S C*s wareho!se in -rmita, anila 1!ly '8, $223: goods were ins"ected by arine Cargo S!rveyors, who #o!nd that $8 reels o# the semi&chemical #l!ting "a"er were 4wet5stained5torn4 and 7 reels o# (ra#t liner board were li(ewise torn S C collected "ayment #rom .C)/ the total damage o# )27,$$' !nder its ins!rance contract .C)/ bro!ght s!it against Calvo as s!brogee o# S C
o

Calvo: Art. $97%(%) The character o# the goods or de#ects in the "ac(ing or in the containers

s"oilage or wettage4 too( "lace while the goods were in the c!stody o# either the carrying vessel 4 5V 6aya(awa ar!,4 which trans"orted the cargo to anila, or the arrastre o"erator, to whom the goods were !nloaded and who allegedly (e"t them in o"en air #or 2 days notwithstanding the #act that some o# the containers were de#ormed, crac(ed, or otherwise damaged

Trial Co!rt: Calvo liable CA: a##irmed

ISS.-: :5; Calvo can be e<em"ted #rom liability !nder Art. $97%(%) 6-=>: ;?. CA AFFI+ ->. mere "roo# o# delivery o# goods in good order to a carrier, and o# their arrival at the "lace o# destination in bad order, ma(es o!t a "rima #acie case against the carrier, so that i# no e<"lanation is given as to how the in@!ry occ!rred, the carrier m!st be held res"onsible e<traordinary res"onsibility lasts #rom the time the goods are !nconditionally "laced in the "ossession o# and received by the carrier #or trans"ortation !ntil the same are

delivered act!ally or constr!ctively by the carrier to the consignee or to the "erson who has the right to receive the same

Article $97'. Common carriers are "ersons, cor"orations, #irms or associations engaged in the b!siness o# carrying or trans"orting "assengers or goods or both, by land, water, or air #or com"ensation, o##ering their services to the "!blic.4 The above article ma(es no distinction between one whose principal b!siness activity is the carrying o# "ersons or goods or both, and one who does s!ch carrying only as an ancillary activity . . . Article $97' also care#!lly avoids ma(ing any distinction between a "erson or enter"rise o##ering trans"ortation service on a regular or scheduled basis and one o##ering s!ch service on an occasional, episodic or unscheduled basis. ;either does Article $97' disting!ish between a carrier o##ering its services to the 4general public,4 i.e., the general comm!nity or "o"!lation, and one who o##ers services or solicits b!siness only #rom a narrow segment o# the general "o"!lation.

conce"t o# 4common carrier4 !nder Article $97' may be seen to coincide neatly with the notion o# 4"!blic service,4 !nder the )!blic Service Act (Commonwealth Act ;o. $%$A, as amended) which at least "artially s!""lements the law on common carriers set #orth in the Civil Code .nder Section $7, "aragra"h (b) o# the )!blic Service Act, 4"!blic service4 incl!des: 4 < < < every "erson that now or herea#ter may own, o"erate, manage, or control in the )hili""ines, #or hire or com"ensation, with general or limited clientele, whether permanent, occasional or accidental, and done for general business purposes, any common carrier, railroad, street railway, traction railway, s!bway motor vehicle, either #or #reight or "assenger, or both, with or witho!t #i<ed ro!te and whatever may be its classi#ication, #reight or carrier service o# any class, e<"ress service, steamboat, or steamshi" line, "ontines, #erries and water cra#t, engaged in the trans"ortation o# "assengers or #reight or both, shi"yard, marine re"air sho", whar# or doc(, ice "lant, ice& re#rigeration "lant, canal, irrigation system, gas, electric light, heat and "ower, water s!""ly and "ower "etrole!m, sewerage system, wire or wireless comm!nications systems, wire or wireless broadcasting stations and other similar "!blic services. < < <4

when Calvo*s em"loyees withdrew the cargo #rom the arrastre o"erator, they did so witho!t e<ce"tion or "rotest either with regard to the condition o# container vans or their contents Calvo m!st do more than merely show the "ossibility that some other "arty co!ld be res"onsible #or the damage. It m!st "rove that it !sed 4all reasonable means to ascertain the nat!re and characteristic o# goods tendered #or trans"ort and that it e<ercised d!e care in the handling