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EASTERN SHIPPING LINES, INC.,petitioner, vs.HON. COURT OF APPEALS AND MERCANTILE

INSURANCE COMPANY, INC., respondents.

1) On December 4, 1981, two fiber drums of riboflavinwere shipped from Yokohama, apan for deliver! vessel"## $%#&$'( O*$&" owned b! defendant $astern#hippin+ ines

-) pon arrival of the shipment in *anila on December 1-,1981, it was dischar+ed unto the custod! of defendant*etro /ort #ervice, 0nc. &he latter ecepted to one drum,said to be in bad order, which dama+e was unknown to

plaintiff.

2) On anuar! 3, 198- defendant %llied rokera+eorporation received the shipment from defendant *etro/ort #ervice, 0nc., one drum opened and without seal

4) On anuar! 8 and 14, 198-, defendant %llied rokera+eorporation made deliveries of the shipment to the

consi+nee5s warehouse. &he latter ecepted to one drumwhich contained spilla+es, while the rest of the contentswas adulterated6fake

7) /laintiff contended that due to the losses6dama+esustained b! said drum, the consi+nee suffered lossestotalin+ /19,2-.97, due to the fault and ne+li+ence ofdefendants. laims were presented a+ainst defendants whofailed and refused to pa! the same

) %s a conse:uence of the losses sustained, plaintiff wascompelled to pa! the consi+nee /19,2-.97 under the

aforestated marine insurance polic!, so that it becamesubr!ate" t a## t$e ri!$ts % acti& % sai" c&si!&eea!ai&st "e%e&"a&ts;per "ud+ed amount isfull! paid.

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;b) nlike, however, the "first +roup" whichremained consistent in holdin+ that the runnin+ ofthe le+al interest should be from the time of thefilin+ of the complaint until full! paid, the "second+roup" varied on the commencement of therunnin+ of the le+al interest.

-) &he ostensible discord is not difficult to eplain. T$e%actua# circumsta&ces ma( $a)e ca##e" %r "i%%ere&t

a**#icati&s, !ui"e" b( t$e ru#e t$at t$e curts are)este" +it$ "iscreti&, "e*e&"i&! & t$e euities % eac$

case, & t$e a+ar" % i&terest.(onetheless, it ma! not beunwise, b! wa! of clarification and reconciliation, tosu++est the followin+ rules of thumb for future +uidance.

0. hen an obli+ation, re+ardless of its source, i.e., law,contracts, :uasi=contracts, delicts or :uasi=delicts-is

breached, the contravenor can be held liable fordama+es. -/&he provisions under &itle JC000 on "Dama+es"of the ivil ode +overn in determinin+ the measure ofrecoverable dama+es.01

00. ith re+ard particularl! to an award of interest in theconcept of actual and compensator! dama+es, the rate ofinterest, as well as the accrual thereof, is imposed, asfollows?

1. hen the obli+ation is breached, and it consists in thepa!ment of a sum % m&e(, i.e., a loan or forbearance ofmone!,

;1) the interest due should be that which ma! have beenstipulated in writin+.0-