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    Eastern Shipping Lines V Iac

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    Mis Dee
    The M/S Asiatica, operated by Eastern Shipping Lines, caught fire and sank while traveling from Japan to Manila, Philippines, resulting in the loss of all cargo onboard. The cargo included packages of pipes, spare parts, garment fabrics, and surveying instruments that were insured by various insurance companies. The insurance companies paid out the claims and sued Eastern Shipping Lines to recover the payments, arguing the carrier was liable as it failed to exercise proper diligence to prevent the fire and the vessel was unseaworthy. Eastern Shipping Lines claimed exemption from liability under the Carriage of Goods by Sea Act, which allows for exceptions in cases of fire. However, the Supreme Court of the Philippines ruled that based on Articles 175

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    Eastern Shipping Lines V Iac

    Uploaded by

    Mis Dee
    35 views2 pages
    The M/S Asiatica, operated by Eastern Shipping Lines, caught fire and sank while traveling from Japan to Manila, Philippines, resulting in the loss of all cargo onboard. The cargo included packages of pipes, spare parts, garment fabrics, and surveying instruments that were insured by various insurance companies. The insurance companies paid out the claims and sued Eastern Shipping Lines to recover the payments, arguing the carrier was liable as it failed to exercise proper diligence to prevent the fire and the vessel was unseaworthy. Eastern Shipping Lines claimed exemption from liability under the Carriage of Goods by Sea Act, which allows for exceptions in cases of fire. However, the Supreme Court of the Philippines ruled that based on Articles 175

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    Eastern Shipping Lines v Iac

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    Eastern Shipping Lines v Iac

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    The M/S Asiatica, operated by Eastern Shipping Lines, caught fire and sank while traveling from Japan to Manila, Philippines, resulting in the loss of all cargo onboard. The cargo included packages of pipes, spare parts, garment fabrics, and surveying instruments that were insured by various insurance companies. The insurance companies paid out the claims and sued Eastern Shipping Lines to recover the payments, arguing the carrier was liable as it failed to exercise proper diligence to prevent the fire and the vessel was unseaworthy. Eastern Shipping Lines claimed exemption from liability under the Carriage of Goods by Sea Act, which allows for exceptions in cases of fire. However, the Supreme Court of the Philippines ruled that based on Articles 175

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views2 pages

    Eastern Shipping Lines V Iac

    Uploaded by

    Mis Dee
    The M/S Asiatica, operated by Eastern Shipping Lines, caught fire and sank while traveling from Japan to Manila, Philippines, resulting in the loss of all cargo onboard. The cargo included packages of pipes, spare parts, garment fabrics, and surveying instruments that were insured by various insurance companies. The insurance companies paid out the claims and sued Eastern Shipping Lines to recover the payments, arguing the carrier was liable as it failed to exercise proper diligence to prevent the fire and the vessel was unseaworthy. Eastern Shipping Lines claimed exemption from liability under the Carriage of Goods by Sea Act, which allows for exceptions in cases of fire. However, the Supreme Court of the Philippines ruled that based on Articles 175

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    [G.R. No.

    L-69044 May 29, 1987]


    EASTERN SHIPPING LINES, INC., petitioner, vs.
    INTERMEDIATE APPELLATE COURT and DEVELOPMENT INSURANCE & SURETY
    CORPORATION,respondents.
    Melencio-Hererra: J.:
    Facts:
    June, 1977 M/S ASIATICA, a Vessel operated by Eastern Shipping Lines was bound
    for Manila from Japan. It loaded:
    * 5,000 pieces of colorized lance pipes in 28 packages valued at P256,039.00
    consigned to Philippine Blooming Mills Co., Inc.,
    *7 cases of spare parts valued at P92,361.75, consigned to Central Textile Mills, Inc.
    Both were insured from marine risks with Development Insurance and Surety Corp.
    *It also took 128 cartoons of garment fabrics and accessories in 2 containers consigned
    to Mariveles Apparel Corp
    *2 Cases of surveying instruments consigned to Aman Enterprises and General
    Merchandise.
    The shipments were insured with DOWA Fire and Marine Insurance Co. and Nisshin
    Fire and marine Insurance Co. respectably.
    En Route from Kobe to Manila the vessel caught fire and sank losing all its shipment.
    The insurance companies paid for the insurance of the above mentioned shipments. A
    case is then instituted a case to redeem the insurance that they paid to the various
    companies against Eastern Shipping Lines. They contend that Eastern should not be
    exempted from liability because it was not able to exercise due diligence in preventing
    the occurrence of the fire as well as its unseaworthiness.
    Eastern Shipping invoked the Carriage of Goods by Sea Act as a defense wherein it is
    said to be exempt from the said liability. The Fire was said to be one of the exempting
    circumstance under the act. It also contended that it the fire occurred as a fortuitous
    event such as a natural disaster or calamity which leads them to conclude that they
    should not be made liable.
    Issue:
    What Law Should be applied in case of breach in the said shipment

    In case of conflict what law should be applied ( COGSA and New Civil Code)
    Held:
    It is the law of the country to which the goods are to be transported.
    Article 1753. The law of the country to which the goods are to be transported shall
    govern the liability of the common carrier for their loss, destruction, or deterioration.
    Furthermore, the issue of Conflict of Law is then settled by the Supreme Court. Wherein
    According to COGSA (CARRIAGE OF GOODS BY SEA ACT) it is then provides for the
    exception on the part of the common carrier in cases of fire while in the journey. On the
    contrary according New Civil Code of the Philippines Article 1734, Common carriers
    are responsible for the loss, destruction, or deterioration of the goods, unless the same
    is due to any of the following causes: (1) flood, storm, earthquake, lightning or other
    natural disaster or calamity
    It is then provided under Article 1766 that In all matters not regulated by this Code, the
    rights and obligations of common carriers shall be governed by the Code of Commerce
    and by Special laws It is therefore be the New Civil Code that shall be applied before
    the said COGSA. The law of the destination would then be applicable over the special
    laws such as the COGSA.
    COGSA will only be applicable in cases where the matter is not regulated by the Code.

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