1. As a rule, a common carrier is responsible for the Facts: loss, destruction or deterioration of the goods it Seller - Delta Photo Supply Company of New York assumes to carry from one place to another unless Agent of carrier - Lu do & Lu Yu Corp the same is due to any to any of the causes Buyer - I. V. Binamira mentioned in Article 1734 and that, if the goods Arrastre - Visayan Cebu Terminal Company, Inc are lost, destroyed or deteriorated, for causes Stevedoring - Cebu Stevedoring Company, Inc. other that those mentioned, the common carrier is Marine surveyors - R. J. del Pan & Company, Inc presumed to have been at fault or to have acted Delta Photo Supply Company of New York negligently, unless it proves that it has observed shipped on board the M/S FERNSIDE at New extraordinary diligence in their care and that this York, 6 cases of films and photographic supplies extraordinary liability lasts from the time the goods consigned to the order of I. V. Binamira. For this are placed in the possession of the carrier until shipment, Bill of Lading was issued. they are delivered to the consignee, or "to the The ship arrived at the port of Cebu and cargo person who has the right to receive them" was discharged including the shipment in 2. These provisions, however, only apply when the question, placing it in the possession and custody loss, destruction or deterioration takes place of the arrastre operator. while the goods are in the possession of the Petitioner hired a stevedoring company to unload carrier, and not after it has lost control of them. its cargo. During the discharge, good order cargo 3. The reason is that while the goods are in its was separated from the bad order cargo on possession, it is but fair that it exercise board the ship, and a separate list of bad order extraordinary diligence in protecting them from cargo was prepared by the checker of the damage, and if loss occurs, the law presumes that stevedoring company. All the cargo unloaded was it was due to its fault or negligence. This is received at the pier by the arrastre operator of necessary to protect the interest the interest of the the port. The terminal company had also its own owner who is at its mercy. The situation changes checker who also recorded and noted down the after the goods are delivered to the consignee. good cargo from the bad one. 4. The parties may agree to limit the liability of the carrier considering that the goods have still to The shipment in question, was not included in the through the inspection of the customs report of bad order cargo of both checkers, authorities before they are actually turned over indicating that it was discharged from the, ship in to the consignee. This is a situation where the good order and condition. carrier losses control of the goods because of a 3 days after the goods were unloaded from the custom regulation and it is unfair that it be made ship, respondent took delivery of his 6 cases of responsible for what may happen during the photographic supplies from the arrastre operator. interregnum. He discovered that the cases showed signs of 5. In the bill of lading that was issued covering the pilferage. shipment, both the carrier and the consignee Respondent hired marine surveyors, to examine have stipulated to limit the responsibility of the them. The surveyors examined the cases and carrier for the loss or damage that may made a physical count of their contents in the because to the goods before they are actually presence of representatives of petitioner, delivered.1 respondent and the stevedoring company. The 6. The stipulations are clear. They have been finding of the surveyors showed that some films adopted precisely to mitigate the responsibility and photographic supplies were missing valued of the carrier nothing therein that is contrary to at P324.63.
TC: Liable to pay
CA: affirmed 1 Stipulations:1. . . . The Carrier shall not be liable in any capacity whatsoever for any delay, > Delivery to the customs authorities is not the nondelivery or misdelivery, or loss of or damage delivery contemplated by Article 1736 because, in to the goods occurring while the goods are not in such a case, the goods are then still in the hands of the actual custody of the Carrier. . . . the Government and their owner could not exercise 2. . . . The responsibility of the Carrier in any capacity dominion whatever over them until the duties are shall altogether cease and the goods shall be paid. considered to be delivered and at their own risk and expense in every respect when taken into the Issue: WON the carrier is responsible for the loss custody of customs or other authorities. The Carrier shall not be required to give any considering that the same occurred after the shipment notification of disposition of the goods. . . . was discharged from the ship and placed in the 3. Any provisions herein to the contrary possession and custody of the customs authorities? notwithstanding, goods may be . . . by Carrier at ship's tackle . . . and delivery beyond ship's tackle Held: NOT LIABLE shall been tirely at the option of the Carrier and solely at the expense of the shipper or consignee. morals or public policy that may justify their nullification.