Republic of the Philippines

National Capital Judicial Region

REGIONAL TRIAL COURT
Branch 86, Manila

NATIONAL SUPPLIES AUTHORITY

And NATIONAL TRUCKING
AUTHORITY,

Plaintiffs,

- versus - Civil Case No. 62709

ALLIED SHIPPING CORP.,

Defendant.

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DECISION

This is an action for damages arising from alleged breach of the

contract of carriage, filed by the plaintiffs National Supplies Authority (NSA)
and National Trucking Corporation, noth government corporations, against
defendant Allied Shipping Corporation (Allied Shipping) for its alleged failure
to deliver to plaintiff NSAs consignee 4,868 bags of non-fat dried milk worth
P2,794,232.00 plus freight prepaid in the amount of P8,707.65 for a total of
P2,862,939.64.

During the pre-trial, the parties offered for resolution by the courth the
following issues:

1. Whether or no defendant Allied Shipping was able to deliver the cargo

involved herein, which it carried on board its vessel, to the consignee
Mr. Hassan Salim of plaintiff NTC in Zamboanga;

2. Whether or not defendant Allied Shipping exercised the extraordinary

diligence required of common carriers in connection with the cargo
subject matter of this case;

3. Whether or not the plaintiff is entitled to its claim for actual, exemplary
and momral damages; and

4. Whether of not the defendant is entitled to recover damages from the

plaintiffs under its counterclaim.

Following are the undisputed facts of the case:

 1. That the NSA engaged the services of defendant to ship commodities.

2. That Mr. Hassan Salim was tasked to surrender the consignees copy
of the bill of lading in exchange fir the release of the commodities, and,
accordingly, sign the corresponding delivery receipt.

3. Mr. Hassan Salim reported through telephone call the non-delivery of

the commodities.

4. That Atty Gregorio Lantana conducted an investigation on the loss of

the 5,824 bags if non-fat dried milk. It was claimed that Allied Shipping
Corporation already released the commodities to Mr. Hassan Salim but
could not produce a bill of lading containing the authentic signature of
the latter.

5. That Mr. Hassan Salim, in the performance of his duties was always
present during deliveries of commodities but sometimes requested that
his subordinates as authorized signatories sign the consignees bill of
lading due to other appointments he needed to attend.

6. The during the delivery date of April 26, 2004, Mr, Hassan Salim was
no longer connected with the NTC effective January 31, 2004.

The testimonies of the defendants witnesses established that while

Hassan Salim was the consignee named in all the bills of lading, and while he
personally attended the deliveries of the individual shipments to NTC,
together with his subordinates, there were times when, although present at
the early stages of the deliveries, he had to leave in order to attend other
appointments allegedly, and allowede or authorized his subordinates to
continure receiving the deliveries and to sign the corresponding delivery
receipts after the deliveries of the cargoes taken out of the container vans
were completed.

According to the testimony of the investigating officer, he was able to talk

to Mr. Hassan Salim a day before his resignation to which it was deduced that
the latter was reluctant to answer, and that after postponing the investigation
for a day, he never saw Mr. Salim again, instead, he received a copy of the
latters resignation letter.

Under the circumstances, and considering the evidence presented by

the plaintiffs as against the unrebutted evidence for the defendant on the
delivery of the commodities in question to Salim, the plaintiffs have failed to
prove their causes of action by clear preponderance of evidene. Hence, Their
complaint must be dismissed. The defendant, on the other hand, must be
awarded damages on its counterclaims which the court finds justified under
the circumstances, by way of reimbursement for their expenses arising out of
this litigation in the amount of P50,000.00 and attorneys fees in the amount of
P70,000.00.
 WHEREFORE, judgement is hereby rendered in favor of the defendant
against the plaintiffs, dismissing the latters complaint, and ordering the
plaintiffs, pursuan to the defendants counterclaims, to pay, jointly and
solidarily, to the defendant, actual damages in the amount of P50,000.00 and
attorneys fees in the amount of P70,000.00 plus the costs of suit.

SO ORDERED.

Manila, May 14, 2008.

Judge
 Group X
Claire Marie Partosa
Stephan Glori Pusing
Allan Dane Parrocha