Case Digest: Switzerland vs. Ramirez, 96 SCRA 297, G.R. No. L48264

 

Switzerland vs. Ramirez, 96 SCRA 297, G.R. No. L48264, February 21, 1980

Subject: Transportation Law

FACTS

Switzerland insured a shipment of 60,000 bags of Urea Nitrogen from Japan to the Philippines. The shipment was discharged from the vessel into lighters owned by Mabuhay Brokerage Co., Inc.

When the shipment was delivered to the consignee, it was found to have sustained losses and damages. Switzerland, as the insurer, paid the consignee for the damages and became subrogated to their rights.

Switzerland filed an admiralty case against the carrier (Oyama Lines), the local agent of the carrier (Citadel Lines), and the lighterage company (Mabuhay Brokerage Co., Inc.). After trial, the trial court rendered decision in favor of petitioner as against therein defendant Oyama Shipping Co., Ltd., but absolving Citadel Lines, Inc. and Mabuhay Brokerage Co., Inc. from liability. 

ISSUE

Whether or not the respondent Citadel Lines, Inc., the local agent of a foreign ocean-going vessel, the S/S "St. Lourdes", may be held primarily liable for the loss/damage found to have been sustained by subject shipment while on board and/or still in the custody of the said vessel.

RULING

Yes, the respondent Citadel Lines, Inc. may be held primarily liable for the loss/damage.

Under the Code of Commerce, it provides that the ship agent shall also be liable for the indemnities in favor of third persons which arise from the conduct of the captain in the care of the goods which the vessel carrier.

In this case, it appears that the Citadel Lines is the ship agent for the vessel S/S "St. Lourdes" at the port of Manila, it is, therefore, liable to the petitioner, solidarily with its principal, Oyama Shipping Co., Ltd., in an amount representing the value of the goods lost and or damaged. The insolvency of Oyama Lines has no bearing on the instant case insofar as the liability of Citadel Lines, Inc. is concerned. The law does not make the liability of the ship agent dependent upon the solvency or insolvency of the ship owner.