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INC., petiti
On March 1, 1987, San Miguel Corporation insured several beer bottle cases with an
aggregate value of P5,836,222.80 with petitioner Philippine American General Insurance
. The weather was calm when the vessel started its voyage. The following day, March 3,
1987, M/V Peatheray Patrick-G listed and subsequently sunk off Cawit Point, Cortes,
Surigao del Sur. As a consequence thereof, the cargo belonging to San Miguel
Corporation was lost. Subsequently, San Miguel Corporation claimed the amount of its
loss from petitioner.
Thereafter, petitioner paid San Miguel Corporation the full amount of P5,836,222.80
pursuant to the terms of their insurance contract.
petitioner as subrogee of San Miguel Corporation filed with the Regional Trial Court (RTC)
of Makati City a case for collection against private respondents to recover the amount it
paid to San Miguel Corporation for the loss of the latter’s cargo.
WON philamgem be held liable for the loss of San Miguel Corporation’s cargo
In order that a common carrier may be absolved from liability where the loss, destruction
or deterioration of the goods is due to a natural disaster or calamity, it must further be
shown that the such natural disaster or calamity was the proximate and only cause of
the loss;[9] there must be “an entire exclusion of human agency from the cause of the
injury of the loss.”
In the case at bar, it was adequately shown that before the M/V Peatheray Patrick-G left
the port of Mandaue City, the Captain confirmed with the Coast Guard that the weather
condition would permit the safe travel of the vessel to Bislig, Surigao del Sur. Thus, he
could not be expected to have foreseen the unfavorable weather condition that awaited
the vessel in Cortes, Surigao del Sur. It was the presence of the strong winds and
enormous waves which caused the vessel to list, keel over, and consequently lose the
cargo contained therein.
Since the presence of strong winds and enormous waves at Cortes, Surigao del Sur on March
3, 1987 was shown to be the proximate and only cause of the sinking of the M/V Peatheray
Patrick-G and the loss of the cargo belonging to San Miguel Corporation, private respondents
cannot be held liable for the said loss. WHERq

Calvo vs. UCPB
G.R. No.148496 March 19, 2002
, Transorient Container Terminal Services, Inc. (TCTSI) owned by Virgines Calvo entered
into a contract with San Miguel Corporation (SMC) for the transfer of 114 reels of semichemical fluting paper and 124 reels of kraft liner board. The cargo was insured by
respondent UCPB General Insurance Co., Inc.
July 14, 1990: arrived in Manila on board "M/V Hayakawa Maru" and later on unloaded
from the vessel to the custody of the arrastre operator, Manila Port Services, Inc. on July
23 to July 25, 1990: Calvo withdrew the cargo from the arrastre operator and delivered
it to SMC's warehouse in Ermita, Manila.. July 25, 1990: goods were inspected by Marine
Cargo Surveyors, who found that 15 reels of the semi-chemical fluting paper were
"wet/stained/torn" and 3 reels of kraft liner board were likewise torn
SMC collected payment from UCPB the total damage of P93,112 under its insurance
UCPB brought suit against Calvo as subrogee of SMC
Calvo: Art. 1734(4) The character of the goods or defects in the packing or in the
spoilage or wettage" took place while the goods were in the custody of
either the carrying vessel "M/V Hayakawa Maru," which transported the
cargo to Manila, or the arrastre operator, to whom the goods were
unloaded and who allegedly kept them in open air for 9 days
notwithstanding the fact that some of the containers were deformed,
cracked, or otherwise damaged
Trial Court: Calvo liable
CA: affirmed
ISSUE: W/N Calvo can be exempted from liability under Art. 1734(4)
mere proof of delivery of goods in good order to a carrier, and of their arrival at the
place of destination in bad order, makes out a prima facie case against the carrier, so
that if no explanation is given as to how the injury occurred, the carrier must be held
extraordinary responsibility lasts from the time the goods are unconditionally placed in
the possession of and received by the carrier for transportation until the same are
delivered actually or constructively by the carrier to the consignee or to the person who
has the right to receive the same. Article 1732. makes no distinction between one
whose principal business activity is the carrying of persons or goods or both, and one
who does such carrying only as an ancillary activity . . . Article 1732 also carefully avoids
making any distinction between a person or enterprise offering transportation service on
a regular or scheduled basis and one offering such service on an occasional, episodic or
unscheduled basis. Neither does Article 1732 distinguish between a carrier offering its
services to the "general public," i.e., the general community or population, and one who
offers services or solicits business only from a narrow segment of the general

): Ganzon vs. CA
(G.R. No. L-48757, May 30, 1988)
On November 28, 1956, Gelacio Tumambing contracted the services of Mauro B. Ganzon to haul 305
tons of scrap iron from Mariveles, Bataan, to the port of Manila on board the lighter LCT "Batman.
Pursuant to that agreement, Mauro B. Ganzon sent his lighter "Batman" to Mariveles where it docked in
three feet of water. Gelacio Tumambing delivered the scrap iron to defendant Filomeno Niza, captain of
the lighter, for loading which was actually begun on the same date by the crew of the lighter under the
captain's supervision. When about half of the scrap iron was already loaded, Mayor Jose Advincula of
Mariveles, Bataan, arrived and demanded P5,000.00 from Gelacio Tumambing. The latter resisted the
shakedown and after a heated argument between them, Mayor Jose Advincula drew his gun and fired at
Gelacio Tumambing who sustained injuries.
After sometime, the loading of the scrap iron was resumed. But on December 4, 1956, Acting Mayor
Basilio Rub, accompanied by three policemen, ordered captain Filomeno Niza and his crew to dump the
scrap iron where the lighter was docked. The rest was brought to the compound of NASSCO. Later on
Acting Mayor Rub issued a receipt stating that the Municipality of Mariveles had taken custody of the
scrap iron.
Tumabing sued Ganzon; the latter alleged that the goods have not been unconditionally placed under his
custody and control to make him liable. The trial court dismissed the case but on appeal, respondent
Court rendered a decision reversing the decision of the trial court and ordering Ganzon to pay damages.
Whether or not a contract of carriage has been perfected.
By the said act of delivery, the scraps were unconditionally placed in the possession and control of the
common carrier, and upon their receipt by the carrier for transportation, the contract of carriage was
deemed perfected. Consequently, the petitioner-carrier's extraordinary responsibility for the loss,
destruction or deterioration of the goods commenced. Pursuant to Art. 1736, such extraordinary
responsibility would cease only upon the delivery, actual or constructive, by the carrier to the consignee,
or to the person who has a right to receive them. The fact that part of the shipment had not been loaded
on board the lighter did not impair the said contract of transportation as the goods remained in the
custody and control of the carrier, albeit still unloaded.
Before Ganzon could be absolved from responsibility on the ground that he was ordered by competent
public authority to unload the scrap iron, it must be shown that Acting Mayor Basilio Rub had the power to
issue the disputed order, or that it was lawful, or that it was issued under legal process of authority. The
appellee failed to establish this. Indeed, no authority or power of the acting mayor to issue such an order
was given in evidence. Neither has it been shown that the cargo of scrap iron belonged to the Municipality
of Mariveles. What we have in the record is the stipulation of the parties that the cargo of scrap iron was
accumulated by the appellant through separate purchases here and there from private individuals. The
fact remains that the order given by the acting mayor to dump the scrap iron into the sea was part of the
pressure applied by Mayor Jose Advincula to shakedown Tumambing for P5,000.00. The order of the
acting mayor did not constitute valid authority for Ganzon and his representatives to carry out.