LU DO & LU YM CORPORATION vs. I. V. BINAMIRA BAUTISTA ANGELO, J.

/April 22, 1957 Facts: Seller - Delta Photo Supply Company of New York Agent of carrier - Lu do & Lu Yu Corp Buyer - I. V. Binamira Arrastre - Visayan Cebu Terminal Company, Inc Stevedoring - Cebu Stevedoring Company, Inc. Marine surveyors - R. J. del Pan & Company, Inc y Delta Photo Supply Company of New York shipped on board the M/S FERNSIDE at New York, 6 cases of films and photographic supplies consigned to the order of I. V. Binamira. For this shipment, Bill of Lading was issued. y The ship arrived at the port of Cebu and cargo was discharged including the shipment in question, placing it in the possession and custody of the arrastre operator. y Petitioner hired a stevedoring company to unload its cargo. During the discharge, good order cargo was separated from the bad order cargo on board the ship, and a separate list of bad order cargo was prepared by the checker of the stevedoring company. All the cargo unloaded was received at the pier by the arrastre operator of the port. The terminal company had also its own checker who also recorded and noted down the good cargo from the bad one. y The shipment in question, was not included in the report of bad order cargo of both checkers, indicating that it was discharged from the, ship in good order and condition. y 3 days after the goods were unloaded from the ship, respondent took delivery of his 6 cases of photographic supplies from the arrastre operator. He discovered that the cases showed signs of pilferage. y Respondent hired marine surveyors, to examine them. The surveyors examined the cases and made a physical count of their contents in the presence of representatives of petitioner, respondent and the stevedoring company. The finding of the surveyors showed that some films and photographic supplies were missing valued at P324.63. TC: Liable to pay CA: affirmed > Delivery to the customs authorities is not the delivery contemplated by Article 1736 because, in such a case, the goods are then still in the hands of the Government and their owner could not exercise dominion whatever over them until the duties are paid. Issue: WON the carrier is responsible for the loss considering that the same occurred after the shipment was discharged from the ship and placed in the possession and custody of the customs authorities? Held: NOT LIABLE Ratio: 1. As a rule, a common carrier is responsible for the loss, destruction or deterioration of the goods it assumes to carry from one place to another unless the same is due to any to any of the causes mentioned in Article 1734 and that, if the goods are lost, destroyed or deteriorated, for causes other that those mentioned, the common carrier is presumed to have been at fault or to have acted negligently, unless it proves that it has observed extraordinary diligence in their care and that this extraordinary liability lasts from the time the goods are placed in the possession of the carrier until they are delivered to the consignee, or "to the person who has the right to receive them" 2. These provisions, however, only apply when the loss, destruction or deterioration takes place while the goods are in the possession of the carrier, and not after it has lost control of them. 3. The reason is that while the goods are in its possession, it is but fair that it exercise extraordinary diligence in protecting them from damage, and if loss occurs, the law presumes that it was due to its fault or negligence. This is necessary to protect the interest the interest of the owner who is at its mercy. The situation changes after the goods are delivered to the consignee. 4. The parties may agree to limit the liability of the carrier considering that the goods have still to through the inspection of the customs authorities before they are actually turned over to the consignee. This is a situation where the carrier losses control of the goods because of a custom regulation and it is unfair that it be made responsible for what may happen during the interregnum. 5. In the bill of lading that was issued covering the shipment, both the carrier and the consignee have stipulated to limit the responsibility of the carrier for the loss or damage that may because to the goods before they are actually delivered.1 6. The stipulations are clear. They have been adopted precisely to mitigate the responsibility of the carrier nothing therein that is contrary to morals or public policy that may justify their nullification.
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Stipulations: 1. . . . The Carrier shall not be liable in any capacity whatsoever for any delay, nondelivery or misdelivery, or loss of or damage to the goods occurring while the goods are not in the actual custody of the Carrier. . . . 2. . . . The responsibility of the Carrier in any capacity shall altogether cease and the goods shall be considered to be delivered and at their own risk and expense in every respect when taken into the custody of customs or other authorities. The Carrier shall not be required to give any notification of disposition of the goods. . . . 3. Any provisions herein to the contrary notwithstanding, goods may be . . . by Carrier at ship's tackle . . . and delivery beyond ship's tackle shall been tirely at the option of the Carrier and solely at the expense of the shipper or consignee.