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    Eastern Shipping Lines, Inc., vs. CA and Mercantile Insurance Company, Inc Digest

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    Dara Rom
    This document summarizes a court case between Eastern Shipping Lines and Mercantile Insurance Company. Two fiber drums were shipped from Japan to Manila and insured by Mercantile. Upon arrival, one drum was found damaged. The consignee later found that one drum contained spillages and the contents of the other were adulterated. Mercantile paid the consignee and became subrogated to the case. The issues were the applicable interest rate and when interest should be computed. The court held that the interest rate is 6% computed from the date of the lower court's decision, and 12% after the judgment becomes final.

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    Eastern Shipping Lines, Inc., vs. CA and Mercantile Insurance Company, Inc Digest

    Uploaded by

    Dara Rom
    282 views1 page
    This document summarizes a court case between Eastern Shipping Lines and Mercantile Insurance Company. Two fiber drums were shipped from Japan to Manila and insured by Mercantile. Upon arrival, one drum was found damaged. The consignee later found that one drum contained spillages and the contents of the other were adulterated. Mercantile paid the consignee and became subrogated to the case. The issues were the applicable interest rate and when interest should be computed. The court held that the interest rate is 6% computed from the date of the lower court's decision, and 12% after the judgment becomes final.

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    Eastern Shipping Lines, Inc., Vs. CA and Mercantile Insurance Company, Inc Digest

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    This document summarizes a court case between Eastern Shipping Lines and Mercantile Insurance Company. Two fiber drums were shipped from Japan to Manila and insured by Mercantile. Upon arrival, one drum was found damaged. The consignee later found that one drum contained spillages and the contents of the other were adulterated. Mercantile paid the consignee and became subrogated to the case. The issues were the applicable interest rate and when interest should be computed. The court held that the interest rate is 6% computed from the date of the lower court's decision, and 12% after the judgment becomes final.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    282 views1 page

    Eastern Shipping Lines, Inc., vs. CA and Mercantile Insurance Company, Inc Digest

    Uploaded by

    Dara Rom
    This document summarizes a court case between Eastern Shipping Lines and Mercantile Insurance Company. Two fiber drums were shipped from Japan to Manila and insured by Mercantile. Upon arrival, one drum was found damaged. The consignee later found that one drum contained spillages and the contents of the other were adulterated. Mercantile paid the consignee and became subrogated to the case. The issues were the applicable interest rate and when interest should be computed. The court held that the interest rate is 6% computed from the date of the lower court's decision, and 12% after the judgment becomes final.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    G.R. No.

    97412 July 12, 1994


    EASTERN SHIPPING LINES, INC., vs. HON. COURT OF APPEALS AND
    MERCANTILE INSURANCE COMPANY, INC.,
    FACTS
    Two fiber drums were shipped owned by Eastern Shipping from Japan.
    The shipment as insured with a marine policy. Upon arrival in Manila unto the
    custody of metro Port Service, which excepted to one drum, said to be in bad
    order and which damage was unknown the Mercantile Insurance Company.
    Allied Brokerage Corporation received the shipment from Metro, one drum
    opened and without seal. Allied delivered the shipment to the consignees
    warehouse. The latter excepted to one drum which contained spillages while
    the rest of the contents was adulterated/fake. As consequence of the loss,
    the insurance company paid the consignee, so that it became subrogated to
    all the rights of action of consignee against the defendants Eastern Shipping,
    Metro Port and Allied Brokerage. The insurance company filed before the trial
    court. The trial court ruled in favor of plaintiff an ordered defendants to pay
    the former with present legal interest of 12% per annum from the date of the
    filing of the complaint. On appeal by defendants, the appellate court denied
    the same and affirmed in toto the decision of the trial court.
    ISSUE
    1 Whether the applicable rate of legal interest is 12% or 6%.
    2
    Whether the payment of legal interest on the award for loss or
    damage is to be computed from the time the complaint is filed from the date
    the decision appealed from is rendered.
    HELD
    1. The Court held that the legal interest is 6% computed from the
    decision of the court a quo. When an obligation, not constituting a loan or
    forbearance of money, is breached, an interest on the amount of damaes
    awarded may be imposed at the discretion of the court at the rate of 6% per
    annum. No interest shall be adjudged on unliquidated claims or damages
    except when or until the demand can be established with reasonable
    certainty.
    When the judgment of the court awarding a sum of money becomes
    final and executor, the rate of legal interest shall be 12% per annum from
    such finality until satisfaction, this interim period being deemed to be by
    then an equivalent to a forbearance of money.
    The interest due shall be 12% PA to be computed fro default, J or EJD.
    2. From the date the judgment is made. Where the demand is
    established with reasonable certainty, the interest shall begin to run from the
    time the claim is made judicially or EJ but when such certainty cannot be so
    reasonably established at the time the demand is made, the interest shll
    begin to run only from the date of judgment of the court is made.
    The Court held that it should be computed from the decision rendered
    by the court a quo.

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