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Maersk Line vs Court of Appeals Case Digest

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Maersk Line vs Court of Appeals Case Digest
MAERSK LINE vs. CA
G.R. No. 94761, May 17, 1993

FACTS: Petitioner Maersk Line is engaged in the transportation of goods by sea, doing business in the Philippines through its general agent, Compania de Tabacos de Filipinas, while private respondent Efren Castillo is the proprietor of Ethegal Laboratories, a firm engaged in the manufacture of pharmaceutical products.

On Nov. 12, 1976, Castillo ordered from Eli Lilly, Inc. of Puerto Rico 600,000 empty gelatin capsules for the manufacture of his pharmaceutical products. The capsules were placed in 6 drums of 100,000 capsules each valued at US$1,668.71. Shipper Eli Lilly,Inc. advised Castillo through a Memorandum of Shipment that the products were already shipped on board MV “Anders Maerskline” for shipment to the Philippines via Oakland, California. In said Memorandum, shipper Eli Lilly, Inc. specified the date of arrival to be April 3, 1977.

However, for unknown reasons, said cargoes of capsules were mis-shipped and diverted to Richmond, Virginia, USA and then transported back to Oakland, California, USA and with the goods finally arriving in the Philippines on June 10, 1977 or after two (2) months from the date specified in the memorandum. Consignee Castillo refused to take delivery of the goods on account of its failure to arrive on time, and filed an action for rescission of contract with damages against Maersk Line and Eli Lilly alleging gross negligence and undue delay.

Denying that it committed breach of contract, petitioner alleged in its answer that the subject shipment was transported in accordance with the provisions of the NCC covering bill of lading and that its liability under the law on transportation of good attaches only in case of loss, destruction or deterioration of the goods as provided for in Article 1734 of Civil Code. For its part, Eli Lilly in its cross claim argued that the delay was due solely to the negligence of Maersk Line.

The Trial Court dismissed the complaint against

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