111 - APL v. Klepper (Villarey)

UP Law BGC Eve 2024 APL v.
Klepper
Transportation and Public Utilities Transportation Law  Common Carriers  1960 Bautista Angelo
Duration of Extraordinary Responsibility
SUMMARY DOCTRINE
Klepper shipped one lift van under bill of lading on board a ship Extraordinary responsibility of common carriers lasts from the
owned by APL. In Manila, while the lift van was being unloaded, time goods are placed in its possession until delivered, actually
it fell on the pier and its contents were spilled and scatted. APL or constructively, to consignee or to person who has a right to
argues that its liability is only limited to $500 pursuant to what is receive them. A shipper or consignee who accepts bill of lading
stipulated in the bill of lading and pursuant to Carriage of Goods becomes bound by all stipulations contained therein. Even if not
by Sea Act. SC ruled that the bill of lading binds Keppler, but the signed, the fact that a shipper shipped his goods on board and
Carriage of Goods by Sea Act does not apply. paid the freight shows that it impliedly accepted the bill of lading.
FACTS
 Klepper shipped on board the SS President Cleveland (owned by American President Lines) one lift van under bill of lading
containing personal and household effects from Japan to Manila. In Manila, while the lift van was being unloaded, it fell on the
pier and its contents were spilled and scattered. Klepper suffered damages amounting to PhP 6,729.50.
 CFI Manila
o Klepper brought action to recover the sum.
o CFI ordered APL to pay Klepper
 Court of Appeals
o Both parties appealed
o CA affirmed CFI
 APL is primarily liable because it was its duty to deliver the cargo in good order to consignee under Art. 1734
and 1736 of the Civil Code.
 SC
o APL filed petition: Even if they are indeed liable, it cannot exceed $500 invoking in its favor the bill of lading and Sec.
4(5) of the Carriage of Goods by Sea Act (CA No. 65).
 Bill of lading states: “In case of any loss or damage to or in connection with goods exceeding in actual value
$500 lawful money of the United States, per package, the value of the goods shall be deemed to be $500 per
package.”
RATIO
W/N the bill of lading is binding upon Keppler? YES.

W/N Sec. 4(5) of Carriage of Goods by Sea Act applies to this case? NO.
 Art. 1736, CC: Regardless of its negligence, APL’s liability would attach because being a common carrier its responsibility is
extraordinary and lasts from the time the goods are placed in its possession until they are delivered, actually or constructively,
to the consignee or to the person who has a right to receive them. It can only be exempted therefrom for causes enumerated in
Article 1734.
On the bill of lading  Keppler is bound

 CA ruled that the bill of lading is not binding upon Keppler since neither APL nor any of its agent signed the bill of lading, and
neither has agreed to the clause. Therefore, Keppler is not legally bound.
 SC rules otherwise. It says that a shipper or consignee who accepts the bill of lading becomes bound by all stipulations
contained therein whether on the front or back thereof. The fact that Keppler shipped his goods on board the ship of APL and
paid the corresponding freight shows that he impliedly accepted the bill of lading which was issued in connection with the
shipment in question, and so it may be said that the same is binding upon him as if it has been actually signed by him or by
any other person in his behalf.
On Carriage of Goods by Sea Act  Does not apply

 Art. 1753, CC: The law of the country to which the goods are to be transported shall govern the liability of the common carrier
in case of loss, destruction or deterioration. This refers to the Civil Code.
 Art. 1766, CC: In all matters not regulated by this Code, the rights and Obligation, of common carriers shall be governed by the
Code of Commerce and by special laws.
o But we have provisions in Civil Code covering such matte: Art. 1736, 1737, 1738.
 Although Sec. 4(5) of the Carriage of Goods by Sea Act states that the carrier shall not be liable in an amount exceeding
$500.00 per package unless the value of the goods had been declared by the shipper and inserted in the bill of lading, said
section is merely suppletory to the provisions of the Civil Code.
FALLO
Petition is GRANTED. Keppler is bound by the bill of lading. APL to pay only $500.

111 - APL v. Klepper (Villarey)

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111 - APL v. Klepper (Villarey)

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UP Law BGC Eve 2024 APL v.

W/N the bill of lading is binding upon Keppler? YES.

On the bill of lading  Keppler is bound

On Carriage of Goods by Sea Act  Does not apply

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