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"Switzerland Ins. v. Ramirez: Liability Ruling"

This document summarizes a Supreme Court of the Philippines case involving a cargo insurance claim. The court held that Citadel Lines, the local agent for the vessel carrier Oyama Shipping Co., is liable along with the principal shipping company for losses sustained to a cargo of urea fertilizer while onboard or in the custody of the vessel. The court cited provisions of the Philippine Code of Commerce that make a ship agent responsible for indemnifying third parties for damages arising from the captain's handling of cargo, but allows the agent to avoid liability by abandoning the vessel.

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Ric Sayson
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101 views1 page

"Switzerland Ins. v. Ramirez: Liability Ruling"

This document summarizes a Supreme Court of the Philippines case involving a cargo insurance claim. The court held that Citadel Lines, the local agent for the vessel carrier Oyama Shipping Co., is liable along with the principal shipping company for losses sustained to a cargo of urea fertilizer while onboard or in the custody of the vessel. The court cited provisions of the Philippine Code of Commerce that make a ship agent responsible for indemnifying third parties for damages arising from the captain's handling of cargo, but allows the agent to avoid liability by abandoning the vessel.

Uploaded by

Ric Sayson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Switzerland General Insurance Co., Ltd. v.

Ramirez, 96 SCRA 297 Citadel Lines as the ship agent for the vessel S/S "St. Lourdes" is
liable to the petitioner, solidarily with its principal, Oyama Shipping Co.,
ANTONIO, J.: Ltd

Facts:

On December 24, 1975, petitioner, a foreign insurance company


authorized to do business in the Philippines thru its agent, F. E. Zuellig
Inc., filed an admiralty case against Oyama Shipping Co., Ltd., a foreign
firm doing business in the Philippines, and Citadel Lines, Inc. which is
the local agent of Oyama Shipping Co., Inc.

The complaint alleged that on December 21, 1974, 60,000 bags


of Urea Nitrogen were shipped from Niihama Japan, on board the S/S
St. Lourdes", owned and operated by Citadel Lines, Inc. The goods were
consigned to Borden International Phils., Inc., and insured by petitioner
for the sum of P9,319,105.00 against all risks.

The shipment was discharged from the vessel S/S "St. Lourdes"
shipside into lighters owned by Mabuhay Brokerage Company, Inc., but
when the same was subsequently delivered to and received by the
consignee, it was found to have sustained losses and/or damage
amounting to P38.698.94. This amount was paid by petitioner insurance
company to the consignee/assured, by virtue of which payment it
became subrogated to the rights of the latter.

Issue:

Whether or not Citadel Lines, Inc. may be held primarily liable


for the loss/damage found to have been sustained by subject shipment
while on board and/or still in the custody of the said vessel.

Held:

Yes. The Code of Commerce provides, among others, that the


ship agent shall also be liable for the indemnities in favor of third
persons which arise from the conduct of the captain in the care of the
goods which the vessel carried; but he may exempt himself therefrom
by abandoning the vessel with all her equipments and the freightage he
may have earned during the voyage. (Article 587).

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