Eastern Shipping vs CA
GR No. 97412, 12 July 1994
234 SCRA 78
FACTS
Two
fiber drums were shipped owned by Eastern Shipping from Japan. The shipment as
insured with a marine policy. Upon arrival in Manila unto the custody of metro
Port Service, which excepted to one drum, said to be in bad order and which
damage was unknown the Mercantile Insurance Company. Allied Brokerage
Corporation received the shipment from Metro, one drum opened and without seal.
Allied delivered the shipment to the consignee’s warehouse. The latter excepted
to one drum which contained spillages while the rest of the contents was
adulterated/fake. As consequence of the loss, the insurance company paid the
consignee, so that it became subrogated to all the rights of action of
consignee against the defendants Eastern Shipping, Metro Port and Allied
Brokerage. The insurance company filed before the trial court. The trial court
ruled in favor of plaintiff an ordered defendants to pay the former with
present legal interest of 12% per annum from the date of the filing of the
complaint. On appeal by defendants, the appellate court denied the same and
affirmed in toto the decision of the trial court.
ISSUE
(1) Whether
the applicable rate of legal interest is 12% or 6%.
(2) Whether
the payment of legal interest on the award for loss or damage is to be computed
from the time the complaint is filed from the date the decision appealed from
is rendered.
HELD
(1)
The Court held that the legal interest is 6%
computed from the decision of the court a quo. When an obligation, not
constituting a loan or forbearance of money, is breached, an interest on the
amount of damaes awarded may be imposed at the discretion of the court at the
rate of 6% per annum. No interest shall be adjudged on unliquidated claims or
damages except when or until the demand can be established with reasonable
certainty.
When the
judgment of the court awarding a sum of money becomes final and executor, the
rate of legal interest shall be 12% per annum from such finality until
satisfaction, this interim period being deemed to be by then an equivalent to a
forbearance of money.
The interest
due shall be 12% PA to be computed fro default, J or EJD.
(2)
From the date the judgment is made. Where the
demand is established with reasonable certainty, the interest shall begin to
run from the time the claim is made judicially or EJ but when such certainty
cannot be so reasonably established at the time the demand is made, the
interest shll begin to run only from the date of judgment of the court is made.
(3) The
Court held that it should be computed from the decision rendered by the court a
quo.
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