Chap 2. Compania Maritima Vs Insurance Company of North America

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Chapter 2 - Duty to Exercise Extraordinary Diligence | Duration of Duty in Carriage of Goods

Compania Maritima vs. Insurance Co. of North America in a document that served as the receipt and subrogation agreement
12 SCRA 213 between Macleod and the insurance company wherein the former
assigned to the latter its rights over the insured and damaged cargo.
Facts: Macleod and Company of the Philippines had an oral contract
with Compañia Maritima, a shipping corporation, for the shipment of For failure to recover from Compania Maritima the sum of
2,645 bales of hemp from the Macleod’s private pier at Davao City to P60,421.02, the insurance company instituted an action. After trial, the
Manila and for their subsequent transshipment to Boston, court a quo rendered judgment ordering the Compania Maritima to
Massachusetts on board the S.S. Steel Navigator. This oral contract pay the insurance company the sum of P60,421.02, with legal interest.
was later on confirmed by a formal and written booking. This judgment was affirmed by the Court of Appeals. Hence, this
petition for review.
Pursuant to the contract, Compania Maritima sent to Macleod's private
wharf 2 lighters, LCT Nos. 1023 and 1025 on which the hemp shall Issue: Was there a contract of carriage between the carrier and the
be loaded. These two lighters were manned each by a patron and an shipper considering that the loss occurred while the hemp was still
assistant patron. The patrons of both barges issued the corresponding loaded (free of charge) on a barge owned by the carrier and was not
carrier's receipt. The receipt issued by the patron of LCT No. 1025 actually loaded on the S.S. Bowline Knot which would carry the hemp
reads in part: to Manila and considering that no bill of lading was issued therefore?

Received in behalf of S.S. Bowline Knot in good order and condition Ruling: Yes. Where the shipper delivered the cargo to the carrier and
from MACLEOD AND COMPANY OF PHILIPPINES, Sasa Davao, the latter took possession thereof by placing it on a lighter or barge
for transshipment at Manila onto S.S. Steel Navigator.
manned by its authorized employees, it is held that there existed a
complete contract of carriage the consummation of which had already
FINAL DESTINATION: Boston.
begun.
After leaving Macleod's private wharf, the 2 loaded barges proceeded The liability and responsibility of the carrier under a contract for the
to await the arrival of the S.S. Bowline Knot (belongs to Compañia carriage of goods commence on their actual delivery to, or receipt by,
Maritima) on which the hemp was to be loaded for transshipment to the carrier or an authorized agent. x x x and delivery to a lighter in
Manila. Unfortunately LCT No. 1025 sank which resulted to the charge of a vessel for shipment on the vessel, where it is, the custom
damage or loss of 1,162 bales of hemp loaded therein. In that same to deliver in that way, is a good delivery and binds the vessel receiving
day, Macleod promptly notified Compania Maritima’s main office in the freight, the liability commencing at the time of delivery to the
Manila and its branch in Davao advising it of its liability. Macleod lighter. x x x and, similarly, where there is a contract to carry goods
incurred a total loss amounting to P60,421.02. from one port to another, and they cannot be loaded directly on the
vessel, and lighters are sent by the vessel to bring the goods to it, the
The 1,162 bales of hemp loaded on LCT No. 1025 were insured with lighters are for the time its substitutes, so that the bill of lading is
the Insurance Company of North America. In due time, Macleod filed applicable to the goods as soon as they are placed on the lighters.”
with the said insurance company a claim for the loss it suffered. A sum carriage.
of P64,018.55 was paid by the insurance company. It was noted down

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