Aboitiz Shipping Corporation vs. Court of Appeals

Aboitiz Shipping Corporation vs. Court of Appeals 

GR. No. 89757, August 8, 1990

Facts:

On October 28, 1980, M/V P/ Aboitiz took on board in Hong Kong for shipment to Manila one twenty-footer container holding 281 rolls of goods and one twenty-footer container holding 447 rolls, 10 bulk and 95 carbons of goods for apparel covered by bill of lading No. 575-M. Both shipment were consigned to the Philippines Apparel, Inc an insured with the general Accident Fire and Life Assurance Corporation, Ltd (GAFLAC). The vessel is owned aned operated to manila, the vessel sank and it was declared lost wit all its cargoes. CAFLAC was subrogated to all the rights, interests of action of the consignee against Aboitiz, it filed an action for damages against Abiotiz in the RTC of Manila alleging that the loss was due to the fault or negligence of Aboitiz and the master and crew of its vessel in that they did not observe extraordinary diligence required by law as regards to common carrier.

Issue:

Whether or not the loss was due to fortuitous event.

Held:

The trial court and the appellee court found that the sinking of M/V P.Aboitiz was not due to waves caused by tropical storm Yooning but due to the fault and negligence of petitioner, its master and crew.