07 Home Insurance Company Vs American Steamship

HOME INSURANCE COMPANY vs.
AMERICAN STEAMSHIP AGENCIES,

INC. and LUZON STEVEDORING CORPORATION
G.R. No. L-25599
April 4, 1968
FACTS: “Consorcio Pesquero del Peru of South America” shipped freight pre-
paid at Peru, jute bags of Peruvian fish meal through SS Crowborough,
covered by clean bills of lading. The cargo, consigned to San Miguel Brewery,
Inc., now San Miguel Corporation, and insured by Home Insurance Company
arrived in Manila and was discharged into the lighters of Luzon Stevedoring
Company. When the cargo was delivered to consignee San Miguel Brewery
Inc., there were shortages causing the latter to lay claims against Luzon
Stevedoring Corporation, Home Insurance Company and the American
Steamship Agencies (shipowner), owner and operator of SS Crowborough.
Because the others denied liability, Home Insurance Company paid SMBI the
insurance value of the loss, as full settlement of the claim. Having been
refused reimbursement by both the Luzon Stevedoring Corporation and
American Steamship Agencies, Home Insurance Company, as subrogee to the
consignee, filed against them before the CFI of Manila a complaint for
recovery of the payment paid with legal interest, plus attorney’s fees.
In answer, Luzon Stevedoring Corporation alleged that it delivered with due

diligence the goods in the same quantity and quality that it had received the
same from the carrier.
The CFI, after trial, absolved Luzon Stevedoring Corporation, having found
the latter to have merely delivered what it received from the carrier in the
same condition and quality, and ordered American Steamship Agencies to pay
Home Insurance Company the amount demanded with legal interest plus
attorney’s fees.
Disagreeing with such judgment, American Steamship Agencies appealed

directly to Us.
ISSUE: Is the stipulation in the charter party of the owner’s non-liability valid
so as to absolve the American Steamship Agencies from liability for loss?
HELD: The judgment appealed from is hereby reversed and appellant is
absolved from liability to plaintiff.
YES
The bills of lading, covering the shipment of Peruvian fish meal provide at the
back thereof that the bills of lading shall be governed by and subject to the
terms and conditions of the charter party, if any, otherwise, the bills of lading
prevail over all the agreements. On the bills are stamped “Freight prepaid as
per charter party. Subject to all terms, conditions and exceptions of charter
party dated London, Dec. 13, 1962.”
Section 2, paragraph 2 of the charter party, provides that the owner is liable for
loss or damage to the goods caused by personal want of due diligence on its
part or its manager to make the vessel in all respects seaworthy and to secure
that she be properly manned, equipped and supplied or by the personal act or
default of the owner or its manager. Said paragraph, however, exempts the
owner of the vessel from any loss or damage or delay arising from any other
source, even from the neglect or fault of the captain or crew or some other
person employed by the owner on board, for whose acts the owner would
ordinarily be liable except for said paragraph..
The provisions of our Civil Code on common carriers were taken from Anglo-
American law. Under American jurisprudence, a common carrier undertaking
to carry a special cargo or chartered to a special person only, becomes a private
carrier. As a private carrier, a stipulation exempting the owner from liability
for the negligence of its agent is not against public policy, and is deemed valid.
Such doctrine We find reasonable. The Civil Code provisions on common
carriers should not be applied where the carrier is not acting as such but as a
private carrier. The stipulation in the charter party absolving the owner from
liability for loss due to the negligence of its agent would be void only if the
strict public policy governing common carriers is applied. Such policy has no
force where the public at large is not involved, as in the case of a ship totally
chartered for the use of a single party.
And furthermore, in a charter of the entire vessel, the bill of lading issued by
the master to the charterer, as shipper, is in fact and legal contemplation
merely a receipt and a document of title not a contract, for the contract is the
charter party. The consignee may not claim ignorance of said charter party
because the bills of lading expressly referred to the same. Accordingly, the
consignees under the bills of lading must likewise abide by the terms of the
charter party. And as stated, recovery cannot be had thereunder, for loss or
damage to the cargo, against the shipowners, unless the same is due to
personal acts or negligence of said owner or its manager, as distinguished
from its other agents or employees. In this case, no such personal act or
negligence has been proved.

07 Home Insurance Company Vs American Steamship

Uploaded by

Copyright:

Available Formats

07 Home Insurance Company Vs American Steamship

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

07 Home Insurance Company Vs American Steamship

Uploaded by

Copyright:

Available Formats

HOME INSURANCE COMPANY vs.

AMERICAN STEAMSHIP AGENCIES,

In answer, Luzon Stevedoring Corporation alleged that it delivered with due

Disagreeing with such judgment, American Steamship Agencies appealed

You might also like