GR No.

L-25748
Consolidated Terminals Inc. Vs. Artex Deelo!ment Co Inc.
Facts:
CTI was the operator of a customs bonded warehouse at port area Manila. CTI
received on deposit 193 bales of cotton valued at P99,69.!6. It was a"reed that CTI
would #eep the cotton in behalf of $u%on &ro#era"e Corporation until Paramount Te'tile
Mills Inc.(consi"nee) had opened the correspondin" letter of credit in favor of *dolph
+ansli# Cotton of Corpus Christi, Te'as(shipper). &, virtue of a for"ed permit to deliver
the "oods, purportedl, issued b, the &ureau of Customs, *rte' was able to obtain
deliver, of the bales of cotton on -ovember . and 6 196/ after pa,in" CTI P1., as
stora"e and handlin" char"es. *t the time the merchandise were released to *rte', the
letter of credit had not ,et been opened and the customs duties and ta'es due on the
shipment has not been paid.
CTI sou"ht to recover possession of the cotton b, means of a writ of replevin. The
writ could not be e'ecuted. CTI then filed an amended complaint b, transformin" itd
ori"inal complaint into an action for recover, from *rte' of P99,69.!6 as compensator,
dama"es, P1, as nominal and e'emplar, dama"es and P0, as attorne,1s fees.
*rte' filed a motion to dismiss.C2I "ranted the motion. CTI appealed.
Issue:
Whether or not CTI(warehouseman) had the right to repossess the bales
of cotton and entitled to damages
Ruling:
-o. The court held that it was not clearl, shown in the amended complaint that
CTI as a warehouseman had a cause of action for dama"es a"ainst *rte'. $u%on
&ro#era"e Corporation as depositor, Paramount Te'tile Mills Inc. as consi"nee,
*dolph +ansli# Cotton as shipper and the Commissioners of Customs and Internal
3evenue with respect to the duties and ta'es were the real parties in interest.
Thus, CTI cannot recover the value of the merchandise because it was not the
owner of the cotton.