FACTS: The stevedoring
company Mindanao Terminal and Brokerage
Service, Inc is contracted by Del Monte
Philippines, Inc., to load and stow a shipment of
of fresh green Philippine bananas and fresh
pineapples belonging to Del
Monte Fresh Produce International, Inc. into
the cargo hold of the vessel M/V Mistrau. The
vessel was docked at the port of Davao City
and the goods were to be transported by it to
the port of Inchon, Korea in favor of consignee
Taegu Industries, Inc. The vessel set sail
from the port of Davao City and arrived at the
port of Inchon, Korea. It was then discovered
upon discharge that some of the cargo was in
bad condition. The Marine Cargo Damage
Surveyor of Incok Loss and Average Adjuster of
Korea, through its representative Byeong
Yong Ahn (Byeong),surveyed the extent of the
damage of the shipment. In a survey report, it
was stated that16,069 cartons of the banana
shipment and2,185 cartons of the pineapple
shipment were so damaged that they no longer
had commercial value. Phoenix and McGee instituted an action for damages
against Mindanao Terminal After
trial, the RTC held that the only
participation of Mindanao Terminal was to loathe cargoes on
board theM/V Mistrauunderthe direction and
supervision of the ship’s officers, who would not
have accepted the cargoes on board the vessel
and signed theforeman’s report unless they
were properly arranged and tightly secured to
withstand voyage across the open seas.
Accordingly, Mindanao Terminal cannot be held
liable for whatever happened to the cargoes
after it had loaded and stowed them. Moreover,
citing the survey report, it was found by the
RTC that the cargoes were damaged on account
of a typhoon whichM/V Mistrauhad
encountered during the voyage. It was further
held that Phoenix and McGee had no cause of
action against Mindanao Terminal because the
latter,whose services were contracted by Del
Monte, a distinct corporation from Del Monte
Produce, had no contract with the assured Del
Monte Produce. The RTC dismissed the complaint
and awarded the counterclaim of
Mindanao Terminal in the amount of P83,945.80
as actual damages and P100,000.00 as
attorney’s fees.
ISSUE: Whether Mindanao Terminal is liable for not having
exercised extraordinary diligence in the transport
and storage of the cargo.
RULING: No, in the present case, Mindanao
Terminal, as a stevedore, was only charged with
the loading an d s t o w i n g o f t h e c a
rg o e s from the pier to the ship’s cargo hold; it
was n e v e r t h e c u s t o d i a n o f t h
e s h i p m e n t o f D e l Monte Produce. A stevedore is
not a common carrier for it does not transport
goods or passengers; it is not akin to a
warehouseman for it does not store goods for
profit. **Phoenix and McGee appealed to the
Court of Appeals. The appellate court reversed
and set aside the decision The same court
ordered Mindanao Terminal to pay Phoenix and
McGee “the total amount of $210,265.45
plus legal interest from the filing of the
complaint until fully paid and attorney’s fees of 20%
of the claim." It sustained Phoenix’s and
McGee’s argument that the damage in the cargoes
was the result of improper stowage by Mindanao
Terminal.** Mindanao Ter
minal filed a
motion for reconsideration, which the Court of
Appeals denied in its 26 February 2004
resolution. Hence, the present petition for
review.
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