Eastern Shipping Lines Inc.

VS IAC Case Digest

Eastern Shipping Lines Inc. VS. Intermediate Appellate Court
(150 SCRA 463)

Facts: Sometime in or prior to June 1977, the M/S Asiatica, a vessel

operated by petitioner Eastern Shipping Lines Inc., loaded at Kobe,
Japan for transportation to Manila loaded 5,000 pieces of calorized
pipes valued at P256,039.00 which was consigned to Philippine
Blooming Mills Co, Inc. and 7 cases of spare parts valued at P92,
361.75 consigned to Central Textile Mills. Both sets of goods were
insured against marine risk for their stated value with respondent
Development Insurance and Surety Corp.

In the same vessel, 2 containers of garment fabrics were also loaded

which was consigned to Mariveles Apparel Corp worth $46,583. The
said cargoes were consigned to Nisshin Fire and Marine Insurance.
Another cargo loaded to the vessel was the surveying instruments
consigned to Aman Enterprises and General Merchandise and insured
against respondent Dowa Fire & Marine Insurance for $1,385.00.

On the way to Manila, M/S Asiatica caught fire and sank. This resulted
to the loss of the ship and its cargoes. The respective Insurers paid the
corresponding marine insurance values and were thus subrogated to
the rights of the insured.

The insurers filed a suit against the petitioner carrier for recovery of the
amounts paid to the insured. However, petitioner contends that it is not
liable on the ground that the loss was due to an extraordinary fortuitous
event.

Issue: Whether the Civil Code provisions on Common Carriers or the

Carriage of the Goods by Sea Act will govern the case at bar?

Held: The law of the country to which the goods are to be transported
governs the liability of common carrier in case of their loss, destruction
or deterioration. The liability of petitioner is governed primarily by the
Civil Code however, in all matters not regulated by the Civil Code, the
Code of Commerce and Special Laws will govern with respect to the
rights and obligations of the carrier. Therefore, COGSA is suppletory to
the provisions of the Civil Code.