Friday, March 8, 2024

Case Digest: Malayan vs. Manila Port, 85 SCRA 320

 

Malayan vs. Manila Port, 85 SCRA 320

Subject: Transportation Law


FACTS

In a suit for recovery of money arising out of short delivery and pilferage of goods — which came into the Philippines under four importations — while in the possession of the Manila Port Service, judgment was rendered by the City Court of Manila against defendants. The latter appealed. Thereafter, in the Court of First Instance of Manila, judgment was rendered against the defendants.

Defendants appealed on points of law.

Firstly, on December 31, 1961, the arrival of the "Pioneer Ming" from the United States with a shipment of electrical surface raceways and fittings resulted in the pilferage of one carton and the non-delivery of six cartons, forming the basis of the first cause of action.

Secondly, on November 29, 1961, the Brunette Shoe Factory imported upper leather, but upon discharge into the custody of Manila Port Service, the delivered leather fell short of 111-¾ square feet, leading to the second cause of action.

The third cause of action, arising on November 27, 1961, involves Dupro (Philippines), Inc.'s importation of 18 cases of auto parts on the "Pioneer Ming," with one case being pilfered upon discharge into the Manila Port Service's custody.

Lastly, the fourth cause of action relates to the arrival on September 15, 1962, of a shipment of 15 cases of black umbrella cloth imported by Chua Luan and Co., Inc. from Japan via the SS "Narra."

Despite being discharged into the custody of the Manila Port Service, two cases of the shipment were pilfered, resulting in a loss to the consignee.

ISSUE

Whether or not the Manila Port Service is liable.

RULING

Yes, the Manila Port Service is liable.

Firstly, Paragraph 7 of the Stipulation of Facts reads: "VII. That the goods were discharged complete into the custody of the defendant." Defendants in their brief categorically state that the opinion of the lower court "that the shipments in question were discharged into the custody of the defendant Manila Port Service complete with respect to quantity, is not disputed."

Secondly, Article 1265 of the Civil Code provides that whenever "the thing is lost in the possession of the debtor, it shall be presumed that the loss was due to his fault, unless there is proof to the contrary." As early as 1907, this Court held that under Article 1183 of the Spanish Civil Code (Article 1265 of the new Code), "the burden of explanation of the loss rested upon the depositary and under article 1769 [of the Spanish Civil Code — now Article 1981 of the new Civil Code], the fault is presumed to be his."

In this case, it is now futile for defendants to pass on liability to the carriers which are not parties to this action. Although defendants argue the fact that the shipments were received by defendant Manila Port Service complete, this does not mean that the goods were received in "good order". This is immaterial because plaintiff's claim is for short delivery and pilferage. Furthermore, drawing parallels between the legal relationships of consignee-arrastre operator and consignee-common carrier, the arrastre operator is obligated to care for the goods. It would seem quite elementary that since the care to be used in the safekeeping of the goods rests peculiarly within the knowledge of the Manila Port Service, it is incumbent upon said defendant to prove that the losses were not due to its negligence or that of its employees. Because there is no proof that the losses occurred either without defendants' fault or by reason of caso fortuito, defendants are liable.

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