8/31/2015

SalusPopuliEstSupremaLex:EasternShippingvsCACreditDigest

EasternShippingvsCACreditDigest
EasternShippingvsCA
GRNo.97412,12July1994
234SCRA78
FACTS
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
excepted to one drum, said to be in bad order and which damage was unknown the Mercantile
Insurance Company. Allied Brokerage Corporation received the shipment from Metro, one drum
opened and without seal. Allied delivered the shipment to the consignees warehouse. The latter
exceptedtoonedrumwhichcontainedspillageswhiletherestofthecontentswasadulterated/fake.
As consequence 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
PortandAlliedBrokerage.Theinsurancecompanyfiledbeforethetrialcourt.Thetrialcourtruledin
favor of plaintiff an ordered defendants to pay the former with present legal interest of 12% per
annum from the date of the filing of the complaint. On appeal by defendants, the appellate court
deniedthesameandaffirmedintotothedecisionofthetrialcourt.
ISSUE
(1)Whethertheapplicablerateoflegalinterestis12%or6%.
(2)Whetherthepaymentoflegalinterestontheawardforlossordamageistobecomputed
fromthetimethecomplaintisfiledfromthedatethedecisionappealedfromisrendered.
HELD
(1)TheCourtheldthatthelegalinterestis6%computedfromthedecisionofthecourta
quo.Whenanobligation,notconstitutingaloanorforbearanceofmoney,isbreached,anintereston
theamountofdamaesawardedmaybeimposedatthediscretionofthecourtattherateof6%per
annum. No interest shall be adjudged on unliquidated claims or damages except when or until the
demandcanbeestablishedwithreasonablecertainty.
Whenthejudgmentofthecourtawardingasumofmoneybecomesfinalandexecutor,
the rate of legal interest shall be 12% per annum from such finality until satisfaction, this interim
periodbeingdeemedtobebythenanequivalenttoaforbearanceofmoney.
Theinterestdueshallbe12%PAtobecomputedfrodefault,JorEJD.
(2) From the date the judgment is made. Where the demand is established with
reasonable certainty, the interest shall begin to run from the time the claim is made judicially or EJ
but when such certainty cannot be so reasonably established at the time the demand is made, the
interestshllbegintorunonlyfromthedateofjudgmentofthecourtismade.

(3)TheCourtheldthatitshouldbecomputedfromthedecisionrenderedbythecourtaquo.
PostedbyJunelli.at12:51PM

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Labels:1994,EasternCaseDigest,EasternCredit,EasternJuly12,EasternShippingvsCA,GRNo.97412,legal
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