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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
December-2009 Jurisprudence                 

  • A.C. No. 7054 - Conrado N. Que v. Atty. Anastacio Revilla, Jr.

  • A.M. No. P-09-2600 - Emma B. Ramos v. Apollo R. Ragot

  • A.M. No. P-09-2636 Formerly OCA IPI No. 07-2681-P - Atty. Eduardo Francisco v. Liza O. Galvez

  • A.M. No. P-09-2676 - Judge Juanita T. Guerrero v. Teresita V. Ong

  • A.M. No. RTJ-05-1953 - Mayor Hadji Amer R. Sampiano, et al. v. Judge Cader P. Indar, Acting Presiding Judge, Regional Trial Court, Br. 12, Malabang, Lanao del Sur

  • A.M. No. RTJ-07-2055 - Heir of the late Rev. Fr. Jose O. Aspiras v. Judge Clifton U. Ganay, Presiding Judge of the Regional Trial court, Branch 31, Agoo, La Union

  • A.M. No. RTJ-09-2170 Formerly OCA I.P.I. No. 09-3094-RTJ - Heirs of Simeon Piedad, namely, Eliseo Piedad, et al. v. Executive Judge Cesar O. Estrena and Judge Gaudiso D. Villarin

  • G.R. No. 146548 : December 18, 2009 - HEIRS OF DOMINGO HERNANDEZ, SR., namely: SERGIA V. HERNANDEZ (Surviving Spouse), DOMINGO V. HERNANDEZ, JR., and MARIA LEONORA WILMA HERNANDEZ, Petitioners, v. PLARIDEL MINGOA, SR., DOLORES CAMISURA, MELANIE MINGOA AND

  • G.R. No. 147951 - Arsenio F. Olegario, et al. v. Pedro C. Mari, represented by Lilia C. Mari-Camba

  • G.R. No. 155125 - YSS Employees Union-Philippine Transport and General Organization v. YSS Laboratories, Inc.

  • G.R. No. 156208 - NPC Drivers and Mechanics Association, et al. v. The National Power Corporation, et al.

  • G.R. No. 149548, G.R. No. 167505, G.R. No. 167540, G.R. No. 167543, G.R. No. 167845, G.R. No. 169163 and G.R. No. 179650 - ROXAS and COMPANY, INC. v. DAMBA-NFSW AND THE DEPARTMENT OF AGRARIAN REFORM/DAMAYAN NG MGA MANGGAGAWANG BUKID SA ASYENDA ROXAS-NATIO

  • G.R. No. 157038 - Government Serive Insurance System v. Jean E. Raoet

  • G.R. No. 157867 - Metropolitan Bank & Trust Company v. Hon. Salvador Abad Santos

  • G.R. No. 159788 - Sotero Roy Leonero, et al. v. Spouses Marcelino B. Barba, et al.

  • G.R. No. 159792 - Barangay Sangalang, represented by its Chairman Dante C. Marcellana v. Barangay Maguihan, represented by its Chairman Arnulfo Villarez

  • G.R. No. 160146 - Leslie Okol v. Slimmers World International, et al.

  • G.R. No. 160367 - Evelyn S. Cabungcal, et al. v. Sonia R. Lorenzo, et al.

  • G.R. No. 161424 - Republic of the Philippines v. Ignacio Leonor and Catalino Razon

  • G.R. No. 161929 - Lynn Paz T. Dela Cruz, et al. v. Sandiganbayan, et al.

  • G.R. No. 163117 - Equitable PCI Bank, Inc. v. Maria Letecia Fernandez, et al.

  • G.R. No. 162243, G.R. NO. 164516 and G.R. NO. 171875 - Hon. Heherson T. Alvarez v. PICOP Resources, Inc.

  • G.R. No. 163553 - Yun Kwan Byung v. Philippine Amusement Gaming Corporation

  • G.R. No. 164195 - Apo Fruits Corporation and Hijo Plantation, Inc. v. The Hon. Court of Appeals, and Land Bank of the Philippines

  • G.R. No. 165109 - Manuel Mamba, et al. v. Edgar R. Lara, et al.

  • G.R. No. 165299 - Pacific Steam Laundry, Inc. v. Laguna Lake Development Authority

  • G.R. No. 165387 - Mayon Estate Corporation and Earthland Developer Corporation v. Lualhati Beltran

  • G.R. No. 166570 - Efren M. Herrera, et al. v. National Power Corporation, et al.

  • G.R. No. 166941 - Spouses Dennis Barias and Divina Barias v. Heirs of Bartolome Boneo, namely, Juanita Leopoldo, et al.

  • G.R. No. 168668 - Philippine Economic Zone Authority (PEZA), et al. v. Pearl City Manufacturing Corporation, et al.

  • G.R. No. 168897 - Gina M. Tiangco and Salvacion Jenny Manego v. Uniwide Sales Warehouse Club, Inc. and Jimmy Gow

  • G.R. No. 168756 and G.R. NO. 171476 - Shrimp Specialist, Inc., v. Fuji-Triumph Agri-Industrial Corporation

  • G.R. No. 170447 - Bievenido Di o and Renato Comparativo v. Pablo Olivarez

  • G.R. No. 170476 - People of the Philippines v. Ricardo Grande

  • G.R. No. 170661 - Ramon B. Formantes v. Duncan Pharmaceutical, Philis., Inc.

  • G.R. No. 171023 - Arsenio S. Quiambao v. Manila Electric Company

  • G.R. No. 171669 - Heirs of Rodrigo Yacapin, namely, Sol Belnas, et al. v. Felimon Belida (Deceased), represented by Merlyn B. Palos, et al.

  • G.R. No. 171916 - Constantino A. Pascual v. Lourdes S. Pascual

  • G.R. No. 172092 - People of the Philippines v. Joey Tion y Cabadu

  • G.R. No. 172372 - The People of the Philippines v. Romar Teodoro y Vallejo

  • G.R. No. 172822 - MOF COMPANY, INC., v. SHIN YANG BROKERAGE CORPORATION

  • G.R. No. 173158 - Alejandro B. Ty and International Realty Corporation v. Queen's Row Subdivision, Inc., et al.

  • G.R. No. 173319 - Federico Miguel Olbes v. Hon. Danilo A. Buemio, etc. et al.

  • G.R. No. 173329 - Susan G. Po and Lilia G. Mutia v. Omerio Dampal

  • G.R. No. 173441 - Heirs of Sofia Quirong, etc. v. Development Bank of the Philippines

  • G.R. No. 173533 - Vicente N. Luna, Jr. v. Nario Cabales, Oscar Pabalan, et al.

  • G.R. No. 174480 - People of the Philippines v. Reynaldo Albalate, Jr.

  • G.R. No. 175115 - Lily O. Orbase v. Office of the Ombudsman and Adoracion Mendoza-Bolos

  • G.R. No. 175393 and G.R. NO. 177731 - Government Service Insurance System v. RTC of Pasig, et al.

  • G.R. No. 175466 - Bank of the Philippine Islands as successor-in-interest of Far East Bank and Trust Company v. SMP, Inc.

  • G.R. No. 175803 - Governor Ornaldo A. Fua, Jr., et al. v. The Commission on Audit, et al.

  • G.R. No. 175994 - Jesus Campos and Rosemarie Campos-Bautista v. Nenita Buevinida Pastrana, et al.

  • G.R. No. 176291 - Jorge B. Navarra v. Office of the Ombudsman, Samuel Namnama, et al.

  • G.R. No. 176951, G.R. No. 177499 and G.R. No. 178056 - League of cities of the Philippines, et al. v. COMELEC

  • G.R. No. 177384 - Josephine Wee v. Republic of the Philippines

  • G.R. No. 177404 and G.R. NO. 178097 - Land Bank of the Philippines v. Kumassie Plantation Company Incorporated

  • G.R. No. 177486 - Purisimo S. Buyco v. Nelson Baraquia

  • G.R. No. 177664 - CRC Agricultural Trading and Rolando B. Catindig v. National Labor Relations Commission and Roberto Obias

  • G.R. No. 177777 - People of the Philippines v. Fernando Gutierrez y Gatso

  • G.R. No. 178000 and 178003 - Liberato M. Carabeo v. Court of Appeals, et al.

  • G.R. No. 178606 - The Episcopal Diocese of the Northern Philippines v. The District Engineer, MPED-DPWH

  • G.R. No. 179328 - Rizalina P. Positos v. Jacob M. Chua

  • G.R. No. 179356 - Kepco Philippines Corporation v. Commissioner of Internal Revenue

  • G.R. No. 179505 - First Philippine Holding Corporation v. Trans Middle East (Phils.) Equities Inc.

  • G.R. No. 179554 - Metropolitan Manila Development Authority v. Trackworks Rail Transit Advertising, Vending and Promotions, Inc.

  • G.R. No. 178158 and G.R. NO. 180428 - Strategic Alliance Development Corporation v. Radstock Securities Limited and Philippine National Construction corporation

  • G.R. No. 179830 - Lintang Bedol v. Commssion on Elections

  • G.R. No. 179946 - The People of the Philippines v. Quirino Cabral y Valencia

  • G.R. No. 179952 - Metropolitan Bank and Trust Company, etc. v. BA Finance Corporation and Malayan Insurance Co, Inc.

  • G.R. No. 180218 - REPUBLIC OF THE PHILIPPINES v. DEVELOPMENT RESOURCES CORPORATION, ET AL.

  • G.R. No. 180439 - Resort Hotels Corporation, Rodolfo M. Cuenca Insvestment Corporation v. Development Bank of the Philippines and SM Investment Corp.

  • G.R. No. 181174 - Ma. Cristina Torres Braza, et al. v. The City Registrar of Himamaylan City, Negros Occidental, minor Patrick Alvin Titular Braza, represented by Leon Titular, et al.

  • G.R. No. 181455 and G.R. No. 182008 - Santiago Cua, Jr., et al. v. Miguel Ocampo Tan, et al.

  • G.R. No. 181556 - In Re: Petition for Assistance in the Liquidation of Intercity Savinds and Loan Bank, Inc., Philippine Deposit Insurance Corporation v. Stockholders of Intercity Savings and Loan Bank, Inc.

  • G.R. No. 181571 - Juno Batistis v. People of the Philippines

  • G.R. No. 182013 - Quasha Ancheta Pe a & Nolasco Law Office and Legeng International Reports, Limited v. The Special Sixth Division of the Court of Appeals, et al.

  • G.R. No. 182161 - Rev. Father Robert P. Reyes v. Court of Appeals, et al.

  • G.R. No. 182216 - Plantation Bay Resort & Spa and Efren Belarmino v. Romel S. Dubrico, et al.

  • G.R. No. 182310 - People of the Philippines v. Jan Michael Tan and Archie Tan

  • G.R. No. 182336 - Elvira O. Ong v. Jose Casim Genio

  • G.R. No. 182430 - Leopoldo Abante v. KJGS Fleet Management Manila and/or Gur Domingo A. Macapayag, Kristian Gerhard Jebsens Skipsrenderi A/S

  • G.R. No. 182623 - Dionisio M. Musnit v. Sea Star Shipping Corporation and Sea Star Shipping Corporation, Ltd.

  • G.R. No. 182498 - Gen. Avelino I. Razon, Jr., chief, Philippine National Police (PNP), et al. v. Mary Jean B. Tagitis

  • G.R. No. 182626 - Hilario S. Ramirez v. Hon. Court of Appeals, et al.

  • G.R. No. 182645 - In the matter of the Heirship (Intestate Estates) of the late Hermogenes Rodriguez, et al., Rene B. Pascual v. Jaime M. Robles

  • G.R. No. 182735 - Sps. Rogelio Marcelo & Milagros v. Philippine Commercial International Bank (PCIB)

  • G.R. No. 183233 - Virgilio G. Anabe v. Asian Construction (ASIAKONSTRUKT), et al.

  • G.R. No. 183297 - National Power Corporation v. Hon. Amer Ibrahim, etc., et al.

  • G.R. No. 183317 - Mariwasa Siam Ceramics, Inc. v. The Secretary of the Department of Labor and Employment, et al.

  • G.R. No. 18335 - Juanito Tabigue, et al. v. International Copra Export Corporation (INTERCO)

  • G.R. No. 183908 - Joelson O. Iloreta v. Philippine Transmarine Carriers, Inc. and Norbulk Shipping U.K. Ltd.

  • G.R. No. 184836 - Simon B. Aldovino, Jr., Danilo B. Faller and Ferdinand N. Talabong v. Commission on Elections and Wilfredo F. Asilo

  • G.R. No. 184977 - Coca Cola Bottlers Philippines, Inc. v. Ricky E. Dela Cruz, et al.

  • G.R. No. 185011 - People of the Philippines v. SP03 Sangki Ara y Mirasol, et al.

  • G.R. No. 185381 - People of the Philippines v. Danilo Cruz y Culala

  • G.R. No. 185477 - Herminio M. Gutierrez, et al. v. Flora Mendoza-Plaza, et al.

  • G.R. No. 185749 - Civil Service Commission v. Herminigildo L. Andal

  • G.R. No. 186234 - People of the Philippines v. Felix Palgan

  • G.R. No. 186242 - Government Service Insurance System v. City Treasurer and City Assessor of the City of Manila

  • G.R. No. 186460 - People of the Philippines v. Gualberto Cinco y Soyosa

  • G.R. No. 186965 - Temic Automotive Philippines, Inc. v. Temic Automotive Philippines, Inc., Employees Union

  • G.R. No. 187478 - Representative Danila Ramon S. Fernandez v. House of Representatives Electoral Tribunal and Jesus L. Vicente

  • G.R. No. 187494 - People of the Philippines v. Elmer Barberos

  • G.R. No. 187838 - Adriatico Consortium, Inc. Primary Realty Corp., and Benito Cu-Uy-Gam v. Land Bank of the Philippines

  • G.R. No. 188240 - Michael L. San Miguel v. Commission on Elections and Christopher V. Aguilar

  • G.R. No. 189868 - KABATAAN PARTY-LIST, ET AL. v. COMELEC

  • G.R. No. 189698 - ELEAZAR P. QUINTO and GERINO A. TOLENTINO, JR., v. COMELEC

  •  





     
     

    G.R. No. 172822 - MOF COMPANY, INC., v. SHIN YANG BROKERAGE CORPORATION

      G.R. No. 172822 - MOF COMPANY, INC., v. SHIN YANG BROKERAGE CORPORATION

    PHILIPPINE SUPREME COURT DECISIONS

    SECOND DIVISION

    [G.R. NO. 172822 : December18, 2009]

    MOF COMPANY, INC., Petitioner, v. SHIN YANG BROKERAGE CORPORATION Respondent.

    D E C I S I O N

    DEL CASTILLO, J.:

    The necessity of proving lies with the person who sues.

    The refusal of the consignee named in the bill of lading to pay the freightage on the claim that it is not privy to the contract of affreightment propelled the shipper to sue for collection of money, stressing that its sole evidence, the bill of lading, suffices to prove that the consignee is bound to pay. Petitioner now comes to us by way of Petition for Review on Certiorari1 under Rule 45 praying for the reversal of the Court of Appeals' (CA) judgment that dismissed its action for sum of money for insufficiency of evidence.

    Factual Antecedents

    On October 25, 2001, Halla Trading Co., a company based in Korea, shipped to Manila secondhand cars and other articles on board the vessel Hanjin Busan 0238W. The bill of lading covering the shipment, i.e., Bill of Lading No. HJSCPUSI14168303,2 which was prepared by the carrier Hanjin Shipping Co., Ltd. (Hanjin), named respondent Shin Yang Brokerage Corp. (Shin Yang) as the consignee and indicated that payment was on a "Freight Collect" basis, i.e., that the consignee/receiver of the goods would be the one to pay for the freight and other charges in the total amount of P57,646.00.3

    The shipment arrived in Manila on October 29, 2001. Thereafter, petitioner MOF Company, Inc. (MOF), Hanjin's exclusive general agent in the Philippines, repeatedly demanded the payment of ocean freight, documentation fee and terminal handling charges from Shin Yang. The latter, however, failed and refused to pay contending that it did not cause the importation of the goods, that it is only the Consolidator of the said shipment, that the ultimate consignee did not endorse in its favor the original bill of lading and that the bill of lading was prepared without its consent.

    Thus, on March 19, 2003, MOF filed a case for sum of money before the Metropolitan Trial Court of Pasay City (MeTC Pasay) which was docketed as Civil Case No. 206-03 and raffled to Branch 48. MOF alleged that Shin Yang, a regular client, caused the importation and shipment of the goods and assured it that ocean freight and other charges would be paid upon arrival of the goods in Manila. Yet, after Hanjin's compliance, Shin Yang unjustly breached its obligation to pay. MOF argued that Shin Yang, as the named consignee in the bill of lading, entered itself as a party to the contract and bound itself to the "Freight Collect" arrangement. MOF thus prayed for the payment of P57,646.00 representing ocean freight, documentation fee and terminal handling charges as well as damages and attorney's fees.

    Claiming that it is merely a consolidator/forwarder and that Bill of Lading No. HJSCPUSI14168303 was not endorsed to it by the ultimate consignee, Shin Yang denied any involvement in shipping the goods or in promising to shoulder the freightage. It asserted that it never authorized Halla Trading Co. to ship the articles or to have its name included in the bill of lading. Shin Yang also alleged that MOF failed to present supporting documents to prove that it was Shin Yang that caused the importation or the one that assured payment of the shipping charges upon arrival of the goods in Manila.

    Ruling of the Metropolitan Trial Court

    On June 16, 2004, the MeTC of Pasay City, Branch 48 rendered its Decision4 in favor of MOF. It ruled that Shin Yang cannot disclaim being a party to the contract of affreightment because:

    x x x it would appear that defendant has business transactions with plaintiff. This is evident from defendant's letters dated 09 May 2002 and 13 May 2002 (Exhibits "1" and "2", defendant's Position Paper) where it requested for the release of refund of container deposits x x x. [In] the mind of the Court, by analogy, a written contract need not be necessary; a mutual understanding [would suffice]. Further, plaintiff would have not included the name of the defendant in the bill of lading, had there been no prior agreement to that effect.

    In sum, plaintiff has sufficiently proved its cause of action against the defendant and the latter is obliged to honor its agreement with plaintiff despite the absence of a written contract.5

    The dispositive portion of the MeTC Decision reads:

    WHEREFORE, premises considered, judgment is hereby rendered in favor of plaintiff and against the defendant, ordering the latter to pay plaintiff as follows:

    1. P57,646.00 plus legal interest from the date of demand until fully paid,

    2. P10,000.00 as and for attorney's fees and

    3. the cost of suit.

    SO ORDERED.6

    Ruling of the Regional Trial Court

    The Regional Trial Court (RTC) of Pasay City, Branch 108 affirmed in toto the Decision of the MeTC. It held that:

    MOF and Shin Yang entered into a contract of affreightment which Black's Law Dictionary defined as a contract with the ship owner to hire his ship or part of it, for the carriage of goods and generally take the form either of a charter party or a bill of lading.

    The bill of lading contain[s] the information embodied in the contract.

    Article 652 of the Code of Commerce provides that the charter party must be in writing; however, Article 653 says: "If the cargo should be received without charter party having been signed, the contract shall be understood as executed in accordance with what appears in the bill of lading, the sole evidence of title with regard to the cargo for determining the rights and obligations of the ship agent, of the captain and of the charterer". Thus, the Supreme Court opined in the Market Developers, Inc. (MADE) v. Honorable Intermediate Appellate Court and Gaudioso Uy, G.R. No. 74978, September 8, 1989, this kind of contract may be oral. In another case, Compania Maritima v. Insurance Company of North America, 12 SCRA 213 the contract of affreightment by telephone was recognized where the oral agreement was later confirmed by a formal booking.

    x x x

    Defendant is liable to pay the sum of P57,646.00, with interest until fully paid, attorney's fees of P10,000.00 [and] cost of suit.

    Considering all the foregoing, this Court affirms in toto the decision of the Court a quo.

    SO ORDERED.7

    Ruling of the Court of Appeals

    Seeing the matter in a different light, the CA dismissed MOF's complaint and refused to award any form of damages or attorney's fees. It opined that MOF failed to substantiate its claim that Shin Yang had a hand in the importation of the articles to the Philippines or that it gave its consent to be a consignee of the subject goods. In its March 22, 2006 Decision,8 the CA said:

    This Court is persuaded [that except] for the Bill of Lading, respondent has not presented any other evidence to bolster its claim that petitioner has entered [into] an agreement of affreightment with respondent, be it verbal or written. It is noted that the Bill of Lading was prepared by Hanjin Shipping, not the petitioner. Hanjin is the principal while respondent is the former's agent. (p. 43, rollo)

    The conclusion of the court a quo, which was upheld by the RTC Pasay City, Branch 108 xxx is purely speculative and conjectural. A court cannot rely on speculations, conjectures or guesswork, but must depend upon competent proof and on the basis of the best evidence obtainable under the circumstances. Litigation cannot be properly resolved by suppositions, deductions or even presumptions, with no basis in evidence, for the truth must have to be determined by the hard rules of admissibility and proof (Lagon v. Hooven Comalco Industries, Inc. 349 SCRA 363).

    While it is true that a bill of lading serves two (2) functions: first, it is a receipt for the goods shipped; second, it is a contract by which three parties, namely, the shipper, the carrier and the consignee who undertake specific responsibilities and assume stipulated obligations (Belgian Overseas Chartering and Shipping N.V. v. Phil. First Insurance Co., Inc., 383 SCRA 23), x x x if the same is not accepted, it is as if one party does not accept the contract. Said the Supreme Court:

    "A bill of lading delivered and accepted constitutes the contract of carriage[,] even though not signed, because the acceptance of a paper containing the terms of a proposed contract generally constitutes an acceptance of the contract and of all its terms and conditions of which the acceptor has actual or constructive notice" (Keng Hua Paper Products Co., Inc. v. CA, 286 SCRA 257).

    In the present case, petitioner did not only [refuse to] accept the bill of lading, but it likewise disown[ed] the shipment x x x. [Neither did it] authorize Halla Trading Company or anyone to ship or export the same on its behalf.

    It is settled that a contract is upheld as long as there is proof of consent, subject matter and cause (Sta. Clara Homeowner's Association v. Gaston, 374 SCRA 396). In the case at bar, there is not even any iota of evidence to show that petitioner had given its consent.

    "He who alleges a fact has the burden of proving it and a mere allegation is not evidence" (Luxuria Homes Inc. v. CA, 302 SCRA 315).

    The 40-footer van contains goods of substantial value. It is highly improbable for petitioner not to pay the charges, which is very minimal compared with the value of the goods, in order that it could work on the release thereof.

    For failure to substantiate its claim by preponderance of evidence, respondent has not established its case against petitioner.9

    Petitionersfiled a motion for reconsideration but it was denied in a Resolution10 dated May 25, 2006. Hence, this Petition for Review on Certiorari .

    Petitioner's Arguments

    In assailing the CA's Decision, MOF argues that the factual findings of both the MeTC and RTC are entitled to great weight and respect and should have bound the CA. It stresses that the appellate court has no justifiable reason to disturb the lower courts' judgments because their conclusions are well-supported by the evidence on record.

    MOF further argues that the CA erred in labeling the findings of the lower courts as purely 'speculative and conjectural'. According to MOF, the bill of lading, which expressly stated Shin Yang as the consignee, is the best evidence of the latter's actual participation in the transportation of the goods. Such document, validly entered, stands as the law among the shipper, carrier and the consignee, who are all bound by the terms stated therein. Besides, a carrier's valid claim after it fulfilled its obligation cannot just be rejected by the named consignee upon a simple denial that it ever consented to be a party in a contract of affreightment, or that it ever participated in the preparation of the bill of lading. As against Shin Yang's bare denials, the bill of lading is the sufficient preponderance of evidence required to prove MOF's claim. MOF maintains that Shin Yang was the one that supplied all the details in the bill of lading and acquiesced to be named consignee of the shipment on a 'Freight Collect' basis.

    Lastly, MOF claims that even if Shin Yang never gave its consent, it cannot avoid its obligation to pay, because it never objected to being named as the consignee in the bill of lading and that it only protested when the shipment arrived in the Philippines, presumably due to a botched transaction between it and Halla Trading Co. Furthermore, Shin Yang's letters asking for the refund of container deposits highlight the fact that it was aware of the shipment and that it undertook preparations for the intended release of the shipment.

    Respondent's Arguments

    Echoing the CA decision, Shin Yang insists that MOF has no evidence to prove that it consented to take part in the contract of affreightment. Shin Yang argues that MOF miserably failed to present any evidence to prove that it was the one that made preparations for the subject shipment, or that it is an 'actual shipping practice' that forwarders/consolidators as consignees are the ones that provide carriers details and information on the bills of lading.

    Shin Yang contends that a bill of lading is essentially a contract between the shipper and the carrier and ordinarily, the shipper is the one liable for the freight charges. A consignee, on the other hand, is initially a stranger to the bill of lading and can be liable only when the bill of lading specifies that the charges are to be paid by the consignee. This liability arises from either a) the contract of agency between the shipper/consignor and the consignee; or b) the consignee's availment of the stipulation pour autrui drawn up by and between the shipper/ consignor and carrier upon the consignee's demand that the goods be delivered to it. Shin Yang contends that the fact that its name was mentioned as the consignee of the cargoes did not make it automatically liable for the freightage because it never benefited from the shipment. It never claimed or accepted the goods, it was not the shipper's agent, it was not aware of its designation as consignee and the original bill of lading was never endorsed to it.

    Issue

    The issue for resolution is whether a consignee, who is not a signatory to the bill of lading, is bound by the stipulations thereof. Corollarily, whether respondent who was not an agent of the shipper and who did not make any demand for the fulfillment of the stipulations of the bill of lading drawn in its favor is liable to pay the corresponding freight and handling charges.

    Our Ruling

    Since the CA and the trial courts arrived at different conclusions, we are constrained to depart from the general rule that only errors of law may be raised in a Petition for Review on Certiorari under Rule 45 of the Rules of Court and will review the evidence presented.11

    The bill of lading is oftentimes drawn up by the shipper/consignor and the carrier without the intervention of the consignee. However, the latter can be bound by the stipulations of the bill of lading when a) there is a relation of agency between the shipper or consignor and the consignee or b) when the consignee demands fulfillment of the stipulation of the bill of lading which was drawn up in its favor.12

    In Keng Hua Paper Products Co., Inc. v. Court of Appeals,13 we held that once the bill of lading is received by the consignee who does not object to any terms or stipulations contained therein, it constitutes as an acceptance of the contract and of all of its terms and conditions, of which the acceptor has actual or constructive notice.???r?bl?

    G.R. No. 172822 - MOF COMPANY, INC., v. SHIN YANG BROKERAGE CORPORATION


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