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    Malayan vs. Phil. First Insurance (676 SCRA 268) (Digest)

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    Michelle Lim
    1) Reputable Forwarder Services, Inc. was transporting goods for Wyeth Philippines, Inc. under a contract of carriage since 1989. In 1994, a truck carrying Wyeth goods was hijacked. 2) Philippines First Insurance Co., Inc. paid Wyeth the claim amount and demanded payment from Reputable. Reputable denied liability, claiming it was a private carrier. 3) The court ruled that Reputable was a private carrier serving only one client, Wyeth. As a private carrier, Reputable was bound by the terms of its contract with Wyeth, which made it liable for loss of goods from any cause, including hijacking. The court affirmed the lower

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    Malayan vs. Phil. First Insurance (676 SCRA 268) (Digest)

    Uploaded by

    Michelle Lim
    32 views2 pages
    1) Reputable Forwarder Services, Inc. was transporting goods for Wyeth Philippines, Inc. under a contract of carriage since 1989. In 1994, a truck carrying Wyeth goods was hijacked. 2) Philippines First Insurance Co., Inc. paid Wyeth the claim amount and demanded payment from Reputable. Reputable denied liability, claiming it was a private carrier. 3) The court ruled that Reputable was a private carrier serving only one client, Wyeth. As a private carrier, Reputable was bound by the terms of its contract with Wyeth, which made it liable for loss of goods from any cause, including hijacking. The court affirmed the lower

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    (27) Malayan vs. Phil. First Insurance (676 SCRA 268) (Digest)

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    1) Reputable Forwarder Services, Inc. was transporting goods for Wyeth Philippines, Inc. under a contract of carriage since 1989. In 1994, a truck carrying Wyeth goods was hijacked. 2) Philippines First Insurance Co., Inc. paid Wyeth the claim amount and demanded payment from Reputable. Reputable denied liability, claiming it was a private carrier. 3) The court ruled that Reputable was a private carrier serving only one client, Wyeth. As a private carrier, Reputable was bound by the terms of its contract with Wyeth, which made it liable for loss of goods from any cause, including hijacking. The court affirmed the lower

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    32 views2 pages

    Malayan vs. Phil. First Insurance (676 SCRA 268) (Digest)

    Uploaded by

    Michelle Lim
    1) Reputable Forwarder Services, Inc. was transporting goods for Wyeth Philippines, Inc. under a contract of carriage since 1989. In 1994, a truck carrying Wyeth goods was hijacked. 2) Philippines First Insurance Co., Inc. paid Wyeth the claim amount and demanded payment from Reputable. Reputable denied liability, claiming it was a private carrier. 3) The court ruled that Reputable was a private carrier serving only one client, Wyeth. As a private carrier, Reputable was bound by the terms of its contract with Wyeth, which made it liable for loss of goods from any cause, including hijacking. The court affirmed the lower

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    MALAYAN INSURANCE CO., INC.

    , Petitioner, v. PHILIPPINES FIRST INSURANCE CO., INC. and


    REPUTABLE FORWARDER SERVICES, INC., Respondents.

    G.R. NO. 184300 - July 11, 2012

    FACTS

    Wyeth Philippines, Inc. (Wyeth) and Reputable Forwarder Services, Inc. (Reputable)have been executing a contract
    of carriage since 1989 to transport and deliver Wyeth's products. Wyeth procured Marine Policy No. MAR 13797
    from Philippines First Insurance Co., Inc. to secure its interest over its own products. The policy covers all risks of
    direct physical loss or damage from any external cause, if by land, and provides a limit of P6,000,000.00 per land
    vehicle. Wyeth and Reputable signed an annual contract of carriage on December 1, 1993, but it was not signed by
    Wyeth's representative. The terms were faithfully observed and the same contract had been executed annually since
    1989. Under the contract, Reputable is liable to Wyeth for the loss, destruction, or damage of goods/products due to
    any and all causes, including theft, robbery, flood, storm, earthquakes, lightning, and other force majeure. Reputable
    signed a SR Policy with petitioner Malayan for P1,000,000.00 to cover Wyeth's goods.

    On October 6, 1994, Reputable received 1,000 boxes of Promil infant formula from Wyeth for delivery to Mercury
    Drug Corporation in Libis, Quezon City. However, the truck was hijacked by 10 armed men who threatened to kill
    the driver and two of his helpers if they refused to turn over the truck and its contents. The truck was recovered two
    weeks later without its cargo. Philippines First paid Wyeth P2,133,257.00 as indemnity in 1995 and demanded
    Reputable to pay to amount paid to Wyeth. However, Reputable ignored the demand and instituted an action for sum
    of money against Philippines First. Reputable claimed that it is a private carrier and cannot be made liable under the
    contract of carriage with Wyeth due to the hijacking incident.

    Reputable impleaded Malayan as third-party defendant in an effort to collect the amount covered in the SR Policy.
    Malayan argued that the insurance does not cover any loss or damage to property which is insured by any marine
    policy and that the SR Policy excludes third-party liability. After trial, the RTC rendered its Decision finding
    Reputable liable to Philippines First for the amount of indemnity it paid to Wyeth, while Malayan was found to be
    liable to Reputable to the extent of the policy coverage. Reputable and Malayan appealed the RTC decision, arguing
    that the contract was unreasonable, unjust, and contrary to law and public policy. Malayan argued that the Marine
    Policy issued by Philippines First was sufficient to indemnify the hijacked cargo, and that it should be held liable for
    no more than P468,766.70, its pro-rata share of the loss, subject to Section 12 of the SR Policy. The CA rendered the
    assailed decision sustaining the ruling of the RTC

    ISSUES

    1) Whether or not Reputable is a private carrier.

    2) Whether or not Reputable is strictly bound by the stipulations in its contract of carriage with Wyeth.

    RULING

    1) Yes. Reputable is a private carrier. The RTC and CA finding that Reputable is a special or private carrier is
    warranted by the evidence on record, primarily, the unrebutted testimony of Reputable’s Vice President and
    General Manager, Mr. William Ang Lian Suan, who expressly stated in open court that Reputable serves only
    one customer, Wyeth. ςrνll

    Under Article 1732 of the Civil Code, common carriers are persons, corporations, firms, or associations
    engaged in the business of carrying or transporting passenger or goods, or both by land, water or air for
    compensation, offering their services to the public. On the other hand, a private carrier is one wherein the
    carriage is generally undertaken by special agreement and it does not hold itself out to carry goods for the
    general public. A common carrier becomes a private carrier when it undertakes to carry a special cargo or
    chartered to a special person only. For all intents and purposes, therefore, Reputable operated as a
    private/special carrier with regard to its contract of carriage with Wyeth.
    2) Yes. Reputable is bound by the terms of the contract of carriage. The extent of a private carrier’s obligation is
    dictated by the stipulations of a contract it entered into, provided its stipulations, clauses, terms and conditions
    are not contrary to law, morals, good customs, public order, or public policy. "The Civil Code provisions on
    common carriers should not be applied where the carrier is not acting as such but as a private carrier. Public
    policy governing common carriers has no force where the public at large is not involved." Thus, being a private
    carrier, the extent of Reputable s liability is fully governed by the stipulations of the contract of carriage, one of
    which is that it shall be liable to Wyeth for the loss of the goods/products due to any and all causes whatsoever,
    including theft, robbery and other force majeure while the goods/products are in transit and until actual delivery
    to Wyeth s customers, salesmen and dealers.

    DISPOSITIVE PORTION

    WHEREFORE, premises considered, the petition is DENIED. The Decision dated February 29, 2008 and
    Resolution dated August 28, 2008 of the Court of Appeals in CA-G.R. CV No. 71204 are hereby AFFIRMED. Cost
    against petitioner Malayan Insurance Co., Inc. SO ORDERED.

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