Flashcards Studio
Practice bar questions and get clear AI feedback on every answer.
Question
Eastbound Oceanic Transport, a common carrier, accepts a crate of sterile medical devices valued at PHP 4,500,000 for delivery from Manila to Iligan City. The crate is properly packed by MedTech Corp. During voyage, a hull hatch ruptures and seawater floods the cargo hold, damaging the devices. An inspection after arrival shows the hatch defect was pre-existing and should have been detected during routine pre-trip maintenance checks. Eastbound contends the loss resulted from an act of God and that it exercised extraordinary diligence in handling the shipment. MedTech sues for damages, arguing that the carrier is liable for failure to maintain the safeguards required of a common carrier. Required: (a) Identify the central doctrine governing the diligence owed by common carriers and the conditions under which the carrier may be exonerated. (b) Apply to the facts: Is Eastbound Oceanic Transport liable for the damaged devices, or can it rely on an act of God defense? (c) If liability attaches, specify the damages the shipper may recover and any defenses the carrier might raise.