Beruflich Dokumente
Kultur Dokumente
69044
EASTERN SHIPPING LINES, INC. vs.
IAC and DEVELOPMENT INSURANCE & SURETY
CORPORATION,
G.R. No. L-71478
EASTERN SHIPPING LINES, INC. vs. THE NISSIN FIRE &
MARINE INSURANCE CO., and DOWA FIRE & MARINE
INSURANCE CO., LTD., May 29, 1987 | Callejo, Sr. J. | Carriage
of Goods by Sea Act
(Comm. Act No, 65; Public Act No. 521, 74th US Congress)
Digester: Carlo
SUMMARY: Eastern Shipping Lines loaded its vessel for
transportation to Manila 4 different classes of items, in different
quantities and units. All the items were insured. The ship sank;
there was a total loss of the goods. The insurers paid the
consignees their claims and filed two cases of recovery against
Eastern.
Eastern was denying any liability, claiming that the ship sank
because of firea fortuitous event. All courts held that fire is not a
fortuitous event and thus Eastern, being a common carrier, had
the burden of proof so as it could exculpate itself from any liability.
The Court affirmed that Eastern had failed to exercise the required
diligence.
When one of the two cases was on appeal to CA, the same court
modified the amount recoverable by the insurer because of $500
per package limitation of liability under Sec. 4(5) of COGSA. The
Court here discussed when and to which items in the instant case
the same COGSA provision applies.
The Court also dealt with the issue of whether which between the
cartons and the containers within which they were shipped, should
be the basis for counting the COGSA liability. Applying the Mistui
test, the Court here said that Eastern is liable for each carton
inside the container as the bill of lading explicitly indicated the
number of cartons to be shipped.
DOCTRINE: COGSA supplements the Code by establishing a
statutory provision limiting the carrier's liability to max $500 per
event shall the carrier be liable for more than the amount of
damage actually sustained.
The provisions of the Carriage of Goods by Sea Act on limited
liability are as much a part of a bill of lading as though
physically in it and as much a part thereof as though placed
therein by agreement of the parties.