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    Phil. Home Assurance vs. CA

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    John Mark Revilla
    1) A ship called the SS Eastern Explorer, owned by ESLI, exploded while transporting cargo which included shipments from William Lines, Inc., Orca’s Company, Pan Oriental Match Company and Ding Velayo. This resulted in the constructive total loss of the vessel. 2) Philippine Home Assurance Corp (PHAC), the insurer of the consignees, paid ESLI additional freight and salvage charges under protest and then filed a case against ESLI to recover the sums paid. 3) The court ruled that while expenses incurred in saving cargo can generally be considered general average, the formalities required by law were not complied with in this case. Therefore, ESLI

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    Phil. Home Assurance vs. CA

    Uploaded by

    John Mark Revilla
    53 views1 page
    1) A ship called the SS Eastern Explorer, owned by ESLI, exploded while transporting cargo which included shipments from William Lines, Inc., Orca’s Company, Pan Oriental Match Company and Ding Velayo. This resulted in the constructive total loss of the vessel. 2) Philippine Home Assurance Corp (PHAC), the insurer of the consignees, paid ESLI additional freight and salvage charges under protest and then filed a case against ESLI to recover the sums paid. 3) The court ruled that while expenses incurred in saving cargo can generally be considered general average, the formalities required by law were not complied with in this case. Therefore, ESLI

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    79. Phil. Home Assurance vs. CA

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    1) A ship called the SS Eastern Explorer, owned by ESLI, exploded while transporting cargo which included shipments from William Lines, Inc., Orca’s Company, Pan Oriental Match Company and Ding Velayo. This resulted in the constructive total loss of the vessel. 2) Philippine Home Assurance Corp (PHAC), the insurer of the consignees, paid ESLI additional freight and salvage charges under protest and then filed a case against ESLI to recover the sums paid. 3) The court ruled that while expenses incurred in saving cargo can generally be considered general average, the formalities required by law were not complied with in this case. Therefore, ESLI

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    53 views1 page

    Phil. Home Assurance vs. CA

    Uploaded by

    John Mark Revilla
    1) A ship called the SS Eastern Explorer, owned by ESLI, exploded while transporting cargo which included shipments from William Lines, Inc., Orca’s Company, Pan Oriental Match Company and Ding Velayo. This resulted in the constructive total loss of the vessel. 2) Philippine Home Assurance Corp (PHAC), the insurer of the consignees, paid ESLI additional freight and salvage charges under protest and then filed a case against ESLI to recover the sums paid. 3) The court ruled that while expenses incurred in saving cargo can generally be considered general average, the formalities required by law were not complied with in this case. Therefore, ESLI

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Phil. Home Assurance vs.

    CA
    G.R. No. 106999
    June 20, 1996.

    Facts

    Various shipments were loaded on board SS Eastern Explorer of ESLI. The


    consignees were William Lines, Inc., Orca’s Company, Pan Oriental Match
    Company and Ding Velayo. While in transit, the vessel exploded resulting to its
    constructive total loss. The explosion was traced to a flame detected on the
    acetylene cylinder located in the accommodation area near the engine room of
    the vessel. It resulted to the death of and severe injuries to some of the crew
    members. The whole vessel was also set on fire which led the remaining men to
    abandon the ship.

    The vessel was towed by a tugboat and the cargoes were recovered. The
    consigned goods were transshipped to the consignees albeit delayed, and via a
    different carrier. ESLI charged the consignees several amounts for the additional
    freight and salvage charges. The charges were paid by Philippine Home
    Assurance Corp. under protest (PHAC; insurer of the consignees).

    PHAC, as subrogee of the consignees, then filed a case with the RTC
    against ESLI to recover the sum paid on the ground that the damage was due to
    the fault, negligence, illegal act or breach of contract of ESLI.

    Issue & Ruling

    Whether or not the expenses incurred in saving the cargo be


    considered as a general average

    Yes. General or gross averages include all damages and expenses which
    are deliberately caused in order to save the vessel, its cargo, or both at the same
    time, from a real and known risk.

    While the instant case may technically fall within the purview of the said
    provision, the formalities prescribed under Articles 813 and 814 of the Code of
    Commerce in order to incur the expenses and cause the damage corresponding
    to gross average were not complied with. Consequently, respondent ESLI's claim
    for contribution from the consignees of the cargo at the time of the occurrence
    of the average turns to naught

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