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American President Lines

This case involves a shipment of personal and household goods from Japan to Manila that was damaged when the lift van fell on the pier during unloading. The shipper, Klepper, filed a claim for damages exceeding $6,700 against the carrier, American President Lines. The carrier argued its liability was limited to $500 under the Carriage of Goods by Sea Act and the bill of lading. The Supreme Court ruled that under Philippine law as the country where the goods were transported, the carrier's liability cannot exceed $500 as stipulated in the bill of lading unless a higher value was declared in writing by the shipper.

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217 views1 page

American President Lines

This case involves a shipment of personal and household goods from Japan to Manila that was damaged when the lift van fell on the pier during unloading. The shipper, Klepper, filed a claim for damages exceeding $6,700 against the carrier, American President Lines. The carrier argued its liability was limited to $500 under the Carriage of Goods by Sea Act and the bill of lading. The Supreme Court ruled that under Philippine law as the country where the goods were transported, the carrier's liability cannot exceed $500 as stipulated in the bill of lading unless a higher value was declared in writing by the shipper.

Uploaded by

Joanne besoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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AMERICAN PRESIDENT LINES, LTD. v. RICHARD A.

KLEPPER
[G.R. No. L-15671. November 29, 1960.]

Facts:

Richard Klepper shipped a lift van containing personal and household materials from Yokohama,
Japan van which is to be delivered to Manila, this transaction is evidence by a bill of lading. It reached
Manila after 5 days and while the lift van was being unloaded by the Gantry crane operated by Delgado
Brothers, Inc., it fell on the pier and its contents were spilled and scattered. As a result Klepper suffered
damages amounting to P6,729.50. He filed an action to recover the damages against American President
Lines, Ltd., plus the sum of P2,000.00 as sentimental value of the damaged goods and attorney’s fees.

On the other hand, American President Lines, Ltd. did not dispute its liability as common carrier,
but it contends that the its liability cannot exceed $500.00 as stipulated in the bill of lading and Section
4(5) of the Carriage of Goods by Sea Act.

Issue: 

Whether the liability of American President Lines, Ltd. should not exceed $500.00.

Ruling:

YES. Article 1753 of the Civil Code provides that the law of the country to which the goods are to
be transported shall govern the liability of the common carrier in case of loss, destruction or
deterioration. This means the law of the Philippines, or the Civil Code. Under Article 1766, "In all matters
not regulated by this Code, the rights and obligations of common carriers shall be governed by the Code
of Commerce and by special laws," and in the Civil Code there are provisions that govern said rights and
obligations (Articles 1736, 1737 and 1738). Therefore, although Section 4 (5) of the Carriage of Goods by
Sea Act states that the carrier shall not be liable in an amount exceeding $500.00 per package unless the
value of the goods had been declared by the shipper and inserted in the bill of lading, said section is
merely suppletory to the provisions of the Civil Code.

The pertinent provision of the bill of lading; "17. In case of any loss or damage to or in
connection with goods exceeding in actual value $500 lawful money of the United States, per
package, . . . the value of the goods shall be deemed to be $500 per package . . . on which basis the
freight is adjusted and the Carrier’s liability, if any, shall be determined on the basis of a value of $500
per package . . . or pro rata in case of partial loss or damage, unless the nature of the goods and a
valuation higher than $500 shall have been declared in writing by the shipper upon delivery to the
Carrier and inserted in this bill of lading and extra freight paid if required and in such case if the actual
value of the goods per package . . . shall exceed such declared value, the value shall nevertheless be
deemed to be the declared value and the Carrier’s liability, if any, shall not exceed the declared value
and any partial loss or damage shall be adjusted pro rata on the basis of such declared value."

In accepting the bill of lading, the shipper, consignee and owner of the goods agree to be bound
by all its stipulations, exceptions and conditions, whether written, printed or stamped on the front or
back.

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