Title

Docket Number: GR 143133 Date June 5, 2002 Ponente: J. Panganiban

Topic Created by: Billy

Petitioners: Respondents

Belgian Overseas Jardine Davies Transport Services

Recit Ready Summary

Facts of the Case

-On June 13, 1990, CMC Trading shipped on board the MV Anangel Sky at Germany, 242 coils of various
Prime Cold Rolled Steel sheets for transportation to Manila consigned to Philippine Steel Trading Corporation.
- On July 28, 1990, MV Anangel Sky arrived at the port of Manila. However, 4 coils were found to be in bad
order and was declared to be a total loss.
- Despite the formal demand, Phil. First Insurance refused to submit to the consignee’s claim. Consequently,
Belgian Overseas paid the consignee P506,086.50 and was subrogated to the latter’s rights.
- Subsequently, plaintiff instituted this complaint for recovery of the amount paid by them, to the consignee as
insured.
- Impugning the suit against them, defendants imputed that the damage was due to pre-shipment damage. More
so, defendants argued that their liability, if there be any, should not exceed the limitations of liability provided
for in the bill of lading and other pertinent lawss

Issues Ruling

WON petitioners have overcome the presumption of negligence of a common carrier NO

Rationale/Analysis/Legal Basis

2. Petitioners contend that the presumption of fault should not be applied on the basis of the lone
testimony offered by private respondent. This is untenable.
3. Well-settled is the rule that common carriers are bound to observe extraordinary diligence with respect
to the safety of the goods and passengers they transport.
4. Thus, common carriers are required to render service with the greatest skill and foresight.
5. Owing to this high degree of diligence, common carriers are presumed to have been at fault if the
goods they transported deteriorated, got lost or destroyed. The exception is if they prove that they
exercised extraordinary diligence.
6. To overcome the presumption of fault, the ff must be the causes: 1) flood, storm, lighting, calamity, 2)
an act of the public enemy in war, 3) an act or omission of the shipper or owner of the goods, 4) the
character of the goods or defects or 5) an order or act of public authority.