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All Jurisprudence based

0 tracked cards Commercial and Taxation Laws

Metro Electronics Corp. contracts Oceanic Freight Lines to carry 900 electronic components from Manila to Cebu. A Bill of Lading names Oceanic Freight Lines as the carrier. During the voyage, hatch covers are left unsecured due to a maintenance backlog, and the vessel has known engine issues. Rough seas result in seawater damage to PHP 2,520,000 of the cargo (70% of value). Oceanic Freight Lines refuses liability, claiming a defense of perils of the sea. Under the Carriage of Goods by Sea Act, is Oceanic Freight Lines liable? Briefly state the controlling rule, how the fact pattern fits or does not fit, and the likely outcome.

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Yes. The carrier is liable for loss due to unseaworthiness from unsecured hatch covers and known engine issues; the defense of perils of the sea does not apply here. Yes. The unsecured hatch covers and engine issues constitute unseaworthiness, so the carrier is liable notwithstanding the sea conditions. No. The shipper’s improper packing or labeling is the real cause of damage, relieving the carrier of responsibility. No. The damage results from inherent vice in the electronics cargo, excusing the carrier from liability.

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