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St. Paul Fire & Marine Insurance Co. vs. Macondray & Co. Inc.

(What is to be paid; Art. 1!!"

FACTS

On June, 1960, Winthrop Products, Inc. of Ne !or", Ne !or", #SA shipped $1% c&rtons &nd dru'sof dru(s &nd 'edicines consi(ned to Winthrop)Ste&'s, Inc., *&ni+&, &o&rd SS -T&i Pin(, oned &ndoper&ted / Wi+he+' Wi+he+'sen.

#arber Stea$ship %ines Inc. issued #ill o %adin' ! a document issued by a carrier which detailsa shipment of merchandise and gives title of that shipment to a specified party. in the na$e oWinthrop Producs Inc. as shipper )ith arrival notice to Manila to consi'nee Winthrop*Stea$s

Inc. Manila.The ship'ent &s insured / shipper &(&inst +oss &nd2or d&'&(e ith St. P&u+ Fire3*&rine Insur&nce Co'p&n/ under its insur&nce Speci&+ Po+ic/.

To 'onths &fter, SS -T&i Pin( &rri4ed &t the Port of *&ni+& &nd disch&r(ed ship'ent into the custod/of *&ni+& Port Ser4ice, the &rr&stre contr&ctor. Ship'ent &s co'p+ete &nd in (ood order e+cept o 1dru$ and several cartons )hich )ere in bad condition. Winthrop)Ste&'s, Inc. *&ni+& upon f&i+in(to recei4e the ho+e ship'ent &nd &s se4er&+ c&rtons ere in &d condition, the/ fi+ed & c+&i' in the&'ount of P1,109.65 representin( the CIF1Cost, Insur&nce, &nd Frei(ht 4&+ue of the d&'&(ed dru'&nd c&rtons of 'edicine to *&condr&/ 3 Co. Inc., &nd &rer Ste&'ship 7ines Inc. &nd *&ni+& PortSer4ice. 8oe4er, oth refused to p&/.

Winthrop)Ste&'s Inc. &+so fi+ed its c+&i' ith insurer St. P&u+ Fire 3 *&rine Insur&nce Co. &ndinsur&nce co'p&n/ on the &sis of the 4&+ue of +ost &nd d&'&(ed (oods in the tot&+ &'ount of1,1:;.;6. As suro(ee$of the ri(hts of Winthrop)Ste&'s Inc, St. P&u+ Fire 3 *&rine Insur&nce Co.instituted &n &ction for reco4er/ of 1,1:;.;6 p+us costs &(&inst *&condr&/ 3 CO., INC., A

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7oer Court> rendered @ud('ent orderin(> *&condr&/ 3 Co, &rer Ste&'ship 7ines, Inc &nd Wi+he+' Wi+he+'sen to p&/ Winthrop)

Ste&'s Inc @oint+/ &nd se4er&++/ the su' of P:00 ith +e(&+ interest fro' fi+in( of co'p+&intunti+ fu++/ p&id

*&ni+&

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DWhene4er the 4&+ue of the (oods is +ess th&n E00 per p&c"&(e or other frei(ht unit,their 4&+ue in the c&+cu+&tion &nd &d@ust'ent of c+&i's for hich the C&rrier '&/ e+i&+e sh&++ for the purpose of &4oidin( uncert&inties &nd difficu+ties in fiBin( 4&+ue edee'ed to e the invoice value, p+us freight &nd insurance if p&id, irrespecti4e ofhether &n/ other 4&+ue is (re&ter or +ess.

DThe +i'it&tion of +i&i+it/ &nd other pro4isions herein sh&++ inure not on+/ to theenefit of the c&rrier, its &(ents, ser4&nts &nd e'p+o/ees, ut &+so to the enefit of &n/independent contr&ctor perfor'in( ser4ices inc+udin( ste4edorin( in connection iththe (oods co4ered hereunder.D

The ship &'ot uns&/ p&n(&n s& ship &nd Ste&'ship Inc &re therefore ound / thestipu+&tions since it is eBpress+/ st&ted th&t in &cceptin( the i++ of +&din(, shipper, oner, &ndconsi(nee of (oods &nd ho+der of i++ of 7&din( &++ &(ree to e ound / stipu+&tions,eBceptions &nd conditions hether ritten, st&'ped or printed &s if the/ ere si(ned /shipper, oner, consi(nee or ho+der.

Therefore &n( (ist is not 'ore th&n PE00 r& &n( '&)co++ect ni Winthrop)Ste&'s Inc d&hi+n&"&s&&d s& o7

$. Since St. P&u+ Fire 3 *&rine Insur&nce co'p&n/ &re suro(&ted 'ere+/ to the ri(hts of the&ssured, it c&n on+/ reco4er the &'ount th&t is reco4er&+e / Winthrop)Ste&'s Inc &s +i'ited&nd restricted / the pro4isions of the i++ of 7&din(.

DThe insurer &fter p&/in( the c+&i' of the insured for d&'&(es under the insur&nce is suro(&ted'ere+/ to the ri(hts of the insured &nd therefore c&n necess&ri+/ recover only that to what wasrecoverable by the insured.D

A+so, the contention of St. P&u+ Fire 3 *&rine Insur&nce Co'p&n/ th&t it shou+d e p&id &ccordin( to

the fu++ &'ount in do++&rs it p&id Winthrop)Ste&'s Inc is of no 'o'ent h&h& "& e s& of no 'o'ent.

The o+i(&tion of the c&rrier to p&/ for the d&'&(e co''enced on the d&te it f&i+ed to de+i4er theship'ent in (ood condition to the consi(nee. The C.I.F. *&ni+& 4&+ue of the (oods hich ere +ost ord&'&(ed, &ccordin( to the c+&i' of the consi(nee d&ted Septe'er $6, 1960 is $$6.:5 for thepi+fer&(e, =Bhiit DD &nd :$;.:: short+&nded, =Bhiit D8D or P;E6.1; &nd P6E:.E:, respecti4e+/,in Phi+ippine Currenc/. The peso eui4&+ent &s &sed / the consi(nee on the eBch&n(e r&te of P$.01Eto 1.00 hich &s the r&te eBistin( &t th&t ti'e. We find, therefore, th&t the tri&+ court co''itted noerror in &doptin( the &fores&id r&te of eBch&n(e.

ist is di d&p&t fee+in(ero si St.P&u+ Fire 3*&rine Insur&nce Co'p&n/ n& '&)rei'urse&n sh& of thefu++ &'ount n& i/& (i p&/ "&/ Winthrop since si Winthrop ound / i++ of 7&din(, insur&nce co'p&n/

is &+so ound / the s&id stipu+&tion. Further'ore, hindi in do++&rs &n( rei'urse'ent &nd shou+d st&rton the d&te of fi+in( of co'p+&int.