Summa Insurance Corporation vs. Court of Appeals and Metro Port Service, Inc
1) Summa Insurance Corporation paid Semirara Coal Corporation for a lost bundle of PC8U blades that went missing from a shipment handled by Metro Port Service, Inc.
2) As the insurer who paid out the claim, Summa Insurance Corporation became subrogated to the rights of the consignee against Metro Port Service.
3) The Court of Appeals found Metro Port Service liable as the arrastre operator and custodian of the goods, with a duty to take good care of the cargo and deliver it to the entitled party, but limited Metro Port's liability according to the terms of its management contract with the Bureau of Customs.
Summa Insurance Corporation vs. Court of Appeals and Metro Port Service, Inc
1) Summa Insurance Corporation paid Semirara Coal Corporation for a lost bundle of PC8U blades that went missing from a shipment handled by Metro Port Service, Inc.
2) As the insurer who paid out the claim, Summa Insurance Corporation became subrogated to the rights of the consignee against Metro Port Service.
3) The Court of Appeals found Metro Port Service liable as the arrastre operator and custodian of the goods, with a duty to take good care of the cargo and deliver it to the entitled party, but limited Metro Port's liability according to the terms of its management contract with the Bureau of Customs.
It has been established that the shipment was lost
while in the custody of private respondent. COURT OF APPEALS and METRO PORT An arrastre operator is bound by the management SERVICE, INC. contract it had executed with the Bureau of Customs. G.R. No. 84680. February 5, 1996 However, a management contract, which is a sort of a PANGANIBAN, J.: stipulation pour autrui is also binding on a consignee The insurer, as successor-in-interest of the consignee, is likewise Facts: bound by the management contract. Indeed, upon taking delivery of the cargo, a consignee (and necessarily its On November 22, 1981, the S/S Galleon Sapphire, a successor-in- interest) tacitly accepts the provisions of the vessel owned by the National Galleon Shipping Corporation management contract, including those which are intended to (NGSC), arrived at Pier 3, South Harbor, Manila, carrying a limit the liability of one of the contracting parties, the shipment consigned to the order of Caterpillar Far East Ltd. arrastre operator. with Semirara Coal Corporation as notify party. The shipment, including a bundle of PC 8 U blades, was covered by marine However, a consignee who does not avail of the insurance issued by petitioner and Bill of Lading No. SF/MLA services of the arrastre operator is not bound by the 1014. The shipment was discharged from the vessel to the management contract. Such an exception to the rule does not custody of private respondent, formerly known as E. Razon, obtain here as the consignee did in fact accept delivery of the Inc., the exclusive arrastre operator at the South Harbor. cargo from the arrastre operator. Accordingly, three good-order cargo receipts were issued by NGSC, duly signed by the ships checker and a representative of The Management Contract between private private respondent. respondent and the Bureau of Customs provides: that the contractor shall be solely responsible as an independent The forwarder, Sterling International Brokerage contractor, and hereby agrees to accept liability and to Corporation, withdrew the shipment from the pier and loaded promptly pay to the steamship company, consignee, consignor it on the barge Semirara 8104. The barge arrived at its port of or other interested party or parties for the loss, damage, or destination, Semirara Island. When Semirara inspected the non-delivery of cargoes to the extent of the actual invoice shipment at its warehouse, it discovered that the bundle of value of each package which in no case shall be more than PC8U blades was missing. Three Thousand Five Hundred Pesos (P3,500.00) for each package unless the value of the importation is otherwise Private respondent issued a shortlanded certificate specified or manifested or communicated in writing together stating that the bundle of PC8U blades was already missing with the invoice value and supported by a certified packing list when it received the shipment from the NGSC vessel. Semirara to the contractor by the interested party or parties before the then filed with petitioner, private respondent and NGSC its discharge of the goods, as well as all damage that may be claim for P280,969.68, the alleged value of the lost bundle. suffered on account of loss, damage, or destruction of any Petitioner paid Semirara the invoice value of the lost merchandise while in custody or under the control of the shipment. Semirara thereafter executed a release of claim and CONTRACTOR in any pier, shed, warehouse, facility or other subrogation receipt. Consequently, petitioner filed its claims designated place under the supervision of the bureau. with NGSC and private respondent but it was unsuccessful. The limitation of appellees liability under said Petitioner then filed a complaint with the Regional provision, is not absolute or unqualified, for if the value of the Trial Court against NGSC and private respondent. The trial merchandise is specified or manifested by the consignee, and court rendered a decision absolving NGSC from any liability but the corresponding arrastre charges are paid on the basis of the finding private respondent liable to petitioner. On appeal, the declared value, the limitation does not apply. Consequently, Court of Appeals modified the decision of the trial court and the questioned provision is neither unfair nor abitrary, as reduced private respondents liability. contended, because the consignee has it in his hands to hold, if he so wishes, the arrastre operator responsible for the full value of his merchandise by merely specifying it in any of the Issue: various documents required of him, in clearing the merchandise from the customs. For then, the appellee arrastre Whether or not the private respondent is legally liable for the operator, by reasons of the payment to it of a commensurate loss of the shipment in question? If so, what is the extent of its charge based on the higher declared value of the merchandise, liability? could and should take extraordinary care of the special or valuable cargo. Ruling: In this case, no evidence was offered by petitioner Private respondent is liable. Petitioner was proving the amount of arrastre fees paid to private respondent subrogated to the rights of the consignee. The relationship so as to put the latter on notice of the value of the cargo. While therefore between the consignee and the arrastre operator petitioner alleged that prior to the loss of the package, its value must be examined. This relationship is much akin to that had been relayed to private respondent through the existing between the consignee or owner of shipped goods and documents the latter had processed, petitioner does not the common carrier, or that between a depositor and a categorically state that among the submitted documents were warehouseman. An arrastre operator should observe the the pro forma invoice value and the certified packing list. same degree of diligence as that required of a common Neither does petitioner pretend that these two documents carrier and a warehouseman as enunciated under Article were prerequisites to the issuance of a permit to deliver or 1733 of the Civil Code and Section 3(b) of the Warehouse were attachments thereto. Receipts Law, respectively. Being the custodian of the goods discharged from a vessel, an arrastre operators duty is to take good care of the goods and to turn them over to the party entitled to their possession.