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GR No. 97412, 12 July 1994 Eastern Shipping vs CA 2 4 SCRA 7! "AC#S Two fiber drums were shipped owned by Eastern Shipping from Japan. The shipment as insured with a marine policy. Upon arrival in Manila unto the custody of metro Port Service, which e cepted to one drum, said to be in bad order and which damage was un!nown the Mercantile "nsurance #ompany. $llied %ro!erage #orporation received the shipment from Metro, one drum opened and without seal. $llied delivered the shipment to the consignee&s warehouse. The latter e cepted to one drum which contained spillages while the rest of the contents was adulterated'fa!e. $s conse(uence of the loss, the insurance company paid the consignee, so that it became subrogated to all the rights of action of consignee against the defendants Eastern Shipping, Metro Port and $llied %ro!erage. The insurance company filed before the trial court. The trial court ruled in favor of plaintiff an ordered defendants to pay the former -5. with present legal interest of )*+ per annum from the date of the filing of the complaint. ,n appeal by defendants, the appellate court denied the same and affirmed in toto the decision of the trial court. $SS%E -). /hether the applicable rate of legal interest is )*+ or 0+. -*. /hether the payment of legal interest on the award for loss or damage is to be computed from the time the complaint is filed from the date the decision appealed from is rendered. &E'( -). The #ourt held that the legal interest is 0+ computed from the decision of the court a (uo. /hen an obligation, not constituting a loan or forbearance of money, is breached, an interest on the amount of damaes awarded may be imposed at the discretion of the court at the rate of 0+ per annum. 1o interest shall be ad2udged on unli(uidated claims or damages e cept when or until the demand can be established with reasonable certainty.

/hen the 2udgment of the court awarding a sum of money becomes final and e ecutor, the rate of legal interest shall be )*+ per annum from such finality until satisfaction, this interim period being deemed to be by then an e(uivalent to a forbearance of money. The interest due shall be )*+ P$ to be computed fro default, J or EJ3. -*. 4rom the date the 2udgment is made. /here the demand is established with reasonable certainty, the interest shall begin to run from the time the claim is made 2udicially or EJ but when such certainty cannot be so reasonably established at the time the demand is made, the interest shll begin to run only from the date of 2udgment of the court is made. The #ourt held that it should be computed from the decision rendered by the court a (uo.