EASTERN SHIPPING LINES, INC., vs. HON. COURT OF APPEALS AND MERCANTILE INSURANCE COMPANY, INC..
- G.R. Number: G.R. No. 97412
- Promulgated: 1994-07-12
- Ponente: Vitug, J.
Doctrine
Solidary (joint and several) liability among carrier, arrastre operator and customs broker is possible but not automatic; specific facts determine whether solidary liability attaches.
Legal interest on indemnity awards: 6% per annum applies from the court decision date until finality; upon finality, 12% per annum applies from finality until satisfaction (interim period deemed equivalent to forbearance).
A carrier is presumed at fault for loss or damage to goods in its custody and must rebut that presumption to avoid liability; failure to rebut supports holding the carrier liable in a particular case.
Facts
Plaintiff sued for damage to a shipment; factual issues included whether losses occurred, whether they occurred while in defendants' custody, and which defendants (if any) should be held liable.
The trial court ordered defendants to pay jointly and severally P19,032.95 with 12% legal interest from 1 October 1982 (date of filing) and limited carrier liability by CIF/usual caps under contract.
Both the court a quo and the Court of Appeals found sufficient evidence that the shipment was damaged while in successive possession of appellants, and the carrier (Eastern Shipping) failed to rebut presumption of fault.
This Court resolved conflicts in prior authorities on legal interest: holding 6% per annum from the decision date, but 12% per annum from finality until satisfaction; petition was partly granted and appealed decision modified accordingly.
Issues
Whether a claim for damage to a shipment can constitute solidary (joint and several) liability of the common carrier, the arrastre operator and the customs broker.
Whether legal interest on an award for loss or damage is to be computed from the time the complaint is filed or from the date the decision appealed from is rendered.
Whether the applicable rate of legal interest is twelve percent (12%) or six percent (6%).
Ruling
The Court held that solidary liability among carrier, arrastre operator and customs broker is not automatic in every case; liability depends on attendant facts, but here the carrier (Eastern Shipping) could not rebut presumption of fault and was held liable.
On legal interest, the Court reconciled prior rulings: six percent (6%) per annum is to be paid on the amount due computed from the decision of the court a quo (dated 03 February 1988) until finality.
Upon finality of this Court's decision, twelve percent (12%) per annum shall be imposed on the unpaid amount in lieu of six percent until payment; the petition was partly granted and the appealed decision modified accordingly.