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Mayer Steel Pipe Corporation vs. Court of Appeals, 274 SCRA 432, June 19, 1997
Mayer Steel Pipe Corporation vs. Court of Appeals, 274 SCRA 432, June 19, 1997
*
G.R. No. 124050. June 19, 1997.
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* SECOND DIVISION.
433
of the goods or the date when they should have been delivered.
Under this provision, only the carrier’s liability is extinguished if
no suit is brought within one year. But the liability of the insurer
is not extinguished because the insurer’s liability is based not on
the contract of carriage but on the contract of insurance. A close
reading of the law reveals that the Carriage of Goods by Sea Act
governs the relationship between the carrier on the one hand and
the shipper, the consignee and/or the insurer on the other hand. It
defines the obligations of the carrier under the contract of
carriage. It does not, however, affect the relationship between the
shipper and the insurer. The latter case is governed by the
Insurance Code.
434
PUNO, J.:
This is a petition for review on certiorari to annul and set
aside the Decision 1 of respondent Court of Appeals dated
December
2
14, 1995 and its Resolution dated February 22,
1996 in CA-G.R. CV No. 45805 entitled Mayer Steel Pipe
Corporation and Hongkong Government Supplies
Department v. South Sea Surety Insurance
3
Co., Inc. and
The Charter Insurance Corporation.
In 1983, petitioner Hongkong Government Supplies
Department (Hongkong) contracted petitioner Mayer Steel
Pipe Corporation (Mayer) to manufacture and supply
various steel pipes and fittings. From August to October,
1983, Mayer shipped the pipes and fittings to Hongkong as
evidenced by Invoice Nos. MSPC-1014, MSPC-1015, 4
MSPC-
1025, MSPC-1020, MSPC-1017 and MSPC-1022.
Prior to the shipping, petitioner Mayer insured the pipes
and fittings against all risks with private respondents
South Sea Surety and Insurance Co., Inc. (South Sea) and
Charter Insurance Corp. (Charter). The pipes and fittings
covered by Invoice Nos. MSPC-1014, 1015 and 1025 with a
total amount
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435
436
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437
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438
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10 At p. 47.
11 43 American Jurisprudence 2d 74-75.
12 Filipino Merchants Insurance Co., Inc. v. Court of Appeals, 179
SCRA 638 (1989).
13 Art. 1144. The following actions must be brought within ten years
from the time the right of action accrues:
439
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