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    Macondray V Provident

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    jjrrssaattii
    Macondray & Co., Inc. was sued by Provident Insurance Corporation over losses sustained during the shipment of fertilizer from Canada to the Philippines. Macondray denied liability as the local agent of the charterer, claiming they had no control over the vessel or crew. The court ruled that as the ship agent, appointed to represent the vessel and provision it in Manila, Macondray could be held civilly liable for losses arising from the captain's conduct according to the Code of Commerce. The Code states that the ship agent is liable for obligations contracted by the captain to equip and provision the vessel, and for indemnities arising from the captain's handling of cargo, unless the agent abandons the vessel. The court found

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    Macondray V Provident

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    jjrrssaattii
    547 views2 pages
    Macondray & Co., Inc. was sued by Provident Insurance Corporation over losses sustained during the shipment of fertilizer from Canada to the Philippines. Macondray denied liability as the local agent of the charterer, claiming they had no control over the vessel or crew. The court ruled that as the ship agent, appointed to represent the vessel and provision it in Manila, Macondray could be held civilly liable for losses arising from the captain's conduct according to the Code of Commerce. The Code states that the ship agent is liable for obligations contracted by the captain to equip and provision the vessel, and for indemnities arising from the captain's handling of cargo, unless the agent abandons the vessel. The court found

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    Macondray v Provident

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    Macondray & Co., Inc. was sued by Provident Insurance Corporation over losses sustained during the shipment of fertilizer from Canada to the Philippines. Macondray denied liability as the local agent of the charterer, claiming they had no control over the vessel or crew. The court ruled that as the ship agent, appointed to represent the vessel and provision it in Manila, Macondray could be held civilly liable for losses arising from the captain's conduct according to the Code of Commerce. The Code states that the ship agent is liable for obligations contracted by the captain to equip and provision the vessel, and for indemnities arising from the captain's handling of cargo, unless the agent abandons the vessel. The court found

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    547 views2 pages

    Macondray V Provident

    Uploaded by

    jjrrssaattii
    Macondray & Co., Inc. was sued by Provident Insurance Corporation over losses sustained during the shipment of fertilizer from Canada to the Philippines. Macondray denied liability as the local agent of the charterer, claiming they had no control over the vessel or crew. The court ruled that as the ship agent, appointed to represent the vessel and provision it in Manila, Macondray could be held civilly liable for losses arising from the captain's conduct according to the Code of Commerce. The Code states that the ship agent is liable for obligations contracted by the captain to equip and provision the vessel, and for indemnities arising from the captain's handling of cargo, unless the agent abandons the vessel. The court found

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    MACONDRAY & CO., INC. vs.

    PROVIDENT INSURANCE
    CORPORATION (G.R. No. 154305. December 9, 2004)

    FACTS:

    CANPOTEX SHIPPING SERVICES LIMITED INC (CANPOTEX), shipped and loaded on


    board the vessel M/V Trade Carrier, 5000 metric tons of Standard Grade Muriate of
    Potash in bulk for transportation to and delivery at the port of Sangi, Toledo City, Cebu,
    in favor of ATLAS FERTILIZER CORPORATION (ATLAS). Subject shipments were
    insured with PROVIDENT against all risks.

    When the shipment arrived, ATLAS discovered that the shipment sustained losses.
    Provident paid for losses. Formal claims was then filed with TRADE & TRANSPORT and
    MACONDRAY but the same refused and failed to settle the same.

    MACONDRAY denied liability over the losses for having no absolute relation with
    defendant TRADE AND TRANSPORT, the alleged operator of the vessel who transported
    the subject shipment; that accordingly, MACONDRAY is the local representative of the
    CANPOTEX; the charterer of M/V TRADE CARRIER and not party to this case; that it
    has no control over the acts of the captain and crew of the Carrier and cannot be held
    responsible for any damage arising from the fault or negligence of said captain and crew;
    that upon arrival at the port of Sangi, Toledo City, Cebu, the M/V Trade Carrier discharged
    the full amount of shipment.

    ISSUE:

    Whether or not MACONDRAY is an agent and thus liable for any loss sustained by any
    party from the vessel owned by defendant TRADE & TRANSPORT.

    RULING:
    Although MACONDRAY is not an agent of TRADE & TRANSPORT, it can still be the ship
    agent of the vessel M/V Trade Carrier. Article 586 of the Code of Commerce states that
    a ship agent is the person entrusted with provisioning or representing the vessel in the
    port in which it may be found. Hence, whether acting as agent of the owner of the vessel
    or as agent of the charterer, petitioner will be considered as the ship agent and may be
    held liable as such, as long as the latter is the one that provisions or represents the vessel.
    The trial court and the CA found evidence that petitioner was appointed as local agent of
    the vessel,represented such vessel in the Port of Manila and was the ship agent.
    As ship agent, it may be held civilly liable in certain instances. The Code of
    Commerce provides:

    Article 586. The shipowner and the ship agent shall be civilly liable for the acts of the
    captain and for the obligations contracted by the latter to repair, equip, and provision the
    vessel, provided the creditor proves that the amount claimed was invested for the benefit
    of the same.

    Article 587. The ship agent shall also be civilly liable for the indemnities in favor of third
    persons which may arise from the conduct of the captain in the care of the goods which
    he loaded on the vessel; but he may exempt himself therefrom by abandoning the vessel
    with all her equipments and the freight it may have earned during the voyage.

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