WHAT IS THE PERIOD OF DELIVERY OF GOODS?

- In Maersk Line v. CA, the Court held that when a common carrier
undertakes to convey goods, the law implies a contract that they shall be
delivered at destination within a reasonable time, in the absence of any
agreement as to the time of delivery. But where a carrier has made an
express contract to transport and deliver properly within a specified time,
it is bound to fulfill its contact and is liable for any delay, no matter from
what cause it may have arisen.

WHAT HAPPENS IF DELIVERY IS MADE WITHOUT SURRENDER OF THE

BILL OF LADING?

- In National Trucking and Forwarding Corporation v. Lorenzo

Shipping Corporation, the Court ruled that in case the consignee, upon
receiving the goods, cannot return the bill of lading subscribed by the
carrier, because of its loss or of any other cause, he must give the latter a
receipt for the goods delivered, this receipt producing the same effects as
the return of the bill of lading.
- The surrender of the original bill of lading is not a condition precedent
for a common carrier to be discharged of its contractual obligation. If
surrender of the original bill of lading is not possible, acknowledgement
of the delivery by signing the delivery receipt suffices.

WHEN IS THE BILL OF LADING BECOME AN ACTIONABLE DOCUMENT?

- When a shipper enforces a contractual obligation under the contract of

carriage as stated in the bill of lading. Hence, it must properly pleaded
either as causes of action or defenses; the genuineness and due
execution of which are deemed admitted unless specifically denied under
oath by the adverse party.

WHAT ARE THE REQUIREMENTS/CONDITIONS PRECEDENT FOR FILING

CLAIMS IN CASE OF LOSS OF GOODS?

1. Notice of Claim
 - In Philippine American General Insurance Co., Inc. v. Sweet Lines,
Inc., the Court ruled that where the contract of shipment contains a
reasonable requirement of giving notice of loss of or injury to the goods,
the giving of such notice is a condition precedent to the action for loss or
injury or the right to enforce the carrier’s liability.
- The fundamental reason or purpose of such a stipulation is not to relieve
the carrier from just liability, but reasonable to inform it that the
shipment has been damaged and that it is charged with liability therefor,
and to give it an opportunity to examine the nature and extent of the
injury.
- Notice is a condition precedent and the carrier is not liable if notice is not
given in accordance with the stipulation, as the failure to comply with
such stipulation in a contract of carriage with respect to notice of loss of
claim for damage bars recovery for the loss or damage suffered.

2. 24-claim requirement
- In Aboitize Shipping Corporation v. Insurance Company of North
America, the Court ruled that the notice of claim must be made within
24 hours from receipt of the cargo if damage is not apparent from the
outside of the package. For the damages that are visible from the outside
of the package, the claim must be made immediately.

WHAT IS THE PERIOD TO FILE ACTIONS?

- Under Loadstar Shipping Co., vs. CA, it was stated therein that the
one-year period prescribed by the Carriage of Goods by Sea Act may be
applied suppletorily since neither the Civil Code nor the Code of
Commerce provides for a prescriptive period for the filing of actions.
- Any stipulation reducing the one-year period is null and void.

CARRIAGE OF GOODS BY SEA ACT

HOW IS COGSA APPLIED IN THE PHILIPPINE JURISDICTION?

- It remains a suppletory law for such type of transportation –

international shipping.
WHAT DOES THE TERM “GOODS” MEAN UNDER THIS ACT?

- It includes goods, wares, merchandise, and articles of every kind

whatsoever.
- It does not include live animals and cargo.

WHO ARE THE PARTIES TO THE CONTRACT UNDER COGSA?

- The parties are the carrier, including the charterer who enters into a
contract of carriage with the shipper, and the shipper.

WHAT ARE THE DUTIES OF A CARRIER?

- Under section 1 of COGSA, it listed the carrier’s obligation and liabilities

in relation to the loading, handling, stowage, carriage, custody, care, and
discharge of such goods.
- Section 3 of the same Act enumerates the responsibilities of the carrier
subject to the provisions of the Civil Code which serves as the primary
law.

WHAT ARE TWO OVERRIDING OBLIGATIONS OF THE CARRIER UNDER

PREVAILING JURISPRUDENCE?

- Section 3, paragraphs 1 and 2 expresses the two overriding obligations of

the carrier under prevailing jurisprudence when COGSA was passed
namely:
a. The obligation to use due care with respect to the cargo; and
b. The obligation to provide a seaworthy vessel at the beginnings of the
voyage.

WHAT IS THE DOCUMENT OF TITLE REQUIRED?

- The contracts of goods covered by COGSA are evidenced by Bills of

Ladings. Section 1 (b) of COGSA provides that the term “contract of
carriage” applies only to contracts of carriage by sea covered by a bill of
lading or any similar document of title, insofar as such document relates
to the carriage of goods by sea, including any bill of lading or any similar
document as aforesaid issued under or pursuant to a charter party from
the moment at which such bill of lading or similar document of title
regulates the relations between a carrier and a holder of the same.
WHEN MUST BE THE NOTICE OF CLAIM BE MADE?

- As stated in section 3(6) of COGSA, such notice of claim must be made

within three days from delivery if the damage is not apparent. The same
period is not mandatory. However, the prescriptive period of one year
from delivery for the filing of the case is a condition precedent or
mandatory.

DOES THE ONE-YEAR PRESCRIPTIVE PERIOD APPLY TO CASES OF

MISDELIVERY OR CONVERSION?

- No. As defined in the Civil Code and as applied to Section 3(6), paragraph
4 of the COGSA, “loss” contemplates merely a situation where no delivery
at all was made by the shipper of the goods because the same had
perished, gone out of commerce, or disappeared in such a way that their
existence is unknown or they cannot be recovered. It does not include a
situation where there was indeed delivery – but delivery to the wrong
person, or a misdelivery.

WHEN ARE THE CARRIERS NOT LIABLE UNDER COGSA?

- Under Section 4 of COGSA, the carrier nor the ship is not liable for loss
or damage arising or resulting from the following:

1. unseaworthiness unless caused by want of due diligence on the part

of the carrier to make the ship seaworthy and to secure that the ship
is properly manned
2. act, neglect, or default of the master, mariner, pilot or the servants of
the carrier in the navigation or in the management of the ship
3.