national steel digest

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National Steel Corporation v. Court of Appeals G.R. Nos. 112287/112350 Facts: Herein petitioner of G.R. No. 112350, Vlasons Shipping entered into a contract of afreightment on contract of vogage4 charter line with the petitioner of the other consolidated case, National Steel Corporation (NSC), whereby the latter hired Vlason’s vessel, the M/V Vlasons I to make a voyage to load steel products from Ilagan City to Manila. Under the agreement, the loading and unloading of the cargoes are the responsibility of the charter and the owner shall no be liable of the loss or damage of the cargo arising from the unseaworthiness unless counsel by want of diligence on the part of the owners to make the vessel seaworthy and to secure that it is properly manned, equipped and supplied. Upon arrival on August 12, 1974, it was found that nearly all the tin plates and hot rolled sheets were wet and rusty. The cargo was unloaded by the charterer Hence the petitioner filed for a claim of damages amounting to P941,145.58, alleging the negligence of the master and crew of the ship. Issue: Whether or not Vlasons Shipping is made liable notwithstanding the Charter Party stipulations. Held: The courts rule the negative. At bottom, this appeal really hinges on a factual issue as to then, how, and who caused the damages to the cargo. Ranged against NSC are two formidable truhs. First, it was found that such damage was brought about during the unloading process when the rain seeped into the cargo due to the negligence of the stevedores employed by it. Second and more importantly, the agreement between the parties “The Contact of Voyage Charter Party for Hire” placed the burden of proof of such loss or damage upon the shipper, not upon the ship owner. Such stipulation, while disadvantageous to the NSC, is valid

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Page 1: National Steel Digest

National Steel Corporation v. Court of AppealsG.R. Nos. 112287/112350

Facts:Herein petitioner of G.R. No. 112350, Vlasons Shipping entered into a contract of

afreightment on contract of vogage4 charter line with the petitioner of the other consolidated case, National Steel Corporation (NSC), whereby the latter hired Vlason’s vessel, the M/V Vlasons I to make a voyage to load steel products from Ilagan City to Manila. Under the agreement, the loading and unloading of the cargoes are the responsibility of the charter and the owner shall no be liable of the loss or damage of the cargo arising from the unseaworthiness unless counsel by want of diligence on the part of the owners to make the vessel seaworthy and to secure that it is properly manned, equipped and supplied.

Upon arrival on August 12, 1974, it was found that nearly all the tin plates and hot rolled sheets were wet and rusty. The cargo was unloaded by the charterer Hence the petitioner filed for a claim of damages amounting to P941,145.58, alleging the negligence of the master and crew of the ship.

Issue:Whether or not Vlasons Shipping is made liable notwithstanding the Charter Party stipulations.

Held:The courts rule the negative. At bottom, this appeal really hinges on a factual issue as to

then, how, and who caused the damages to the cargo. Ranged against NSC are two formidable truhs. First, it was found that such damage was brought about during the unloading process when the rain seeped into the cargo due to the negligence of the stevedores employed by it.

Second and more importantly, the agreement between the parties “The Contact of Voyage Charter Party for Hire” placed the burden of proof of such loss or damage upon the shipper, not upon the ship owner. Such stipulation, while disadvantageous to the NSC, is valid because the parties entered into a contract of private charter, not one of common carriage.

Basic too is the doctrine that courts cannot relieve a party from the effects of a private contract fully entered into, on the ground that it is allegedly one-sided or unfair to the plaintiff. It has been held that the true test of a common carrier of passengers/goods is the carriage of the same, provided it has space, for all who opt to avail for its transportation service for a fee.