FACTS:

The case involves a dispute over a shipment of Indian Soya Bean Meal loaded on the vessel M/V "Hui Yang" for transportation to Manila. The vessel is owned and operated by defendant Conti-Feed, with defendant Wallem as its ship agent. The shipment was discharged and transferred into the custody of receiving barges, handled by Ocean Terminal Services, Inc. (OTSI). A shortage of 80.467 metric tons was noted by a cargo surveyor during cargo check. The vessel chief officer was immediately notified of the shortage. Petitioner filed a complaint for damages against Conti-Feed, RCS Shipping Agencies, Inc., OTSI, and Cargo Trade. The complaint was later amended to include petitioner as a defendant. The case against Cargo Trade was dismissed, and the case against RCS was also dismissed for lack of cause of action. OTSI denied the material allegations and claimed that it exercised due care and diligence. Petitioner denied responsibility for the alleged shortage and asserted that it was due to negligence or faulty loading or unloading by the stevedores/shipper/consignee. The RTC dismissed respondent's complaint, but the CA reversed the decision and ordered defendants to pay the value of the shortdelivered cargo. Petitioner filed a motion for reconsideration, and respondent filed a motion for a more definite dispositive portion. The CA denied petitioner's motion and modified the dispositive portion of its decision.

ISSUES:

1. Whether or not the petitioner is liable for the shortage in the shipment.

RULING:

1. The Court of Appeals held that the petitioner, Wallem Philippines Shipping, Inc., is liable for the shortage in the shipment. The CA reversed the decision of the RTC and ordered the petitioner to pay the value of the 80.467 metric tons of Indian Soya Beans that were shortdelivered, with legal interest from the time the judgment becomes final until full payment, plus attorney's fees and expenses of litigation.

PRINCIPLES:

• A ship agent is liable for any loss or damage to the cargo arising from his negligence, default, or failure to exercise due diligence. (citing Article 1733 of the Civil Code)

• The measurement to be adopted in determining the quantity of the goods loaded or discharged from a vessel is the draft survey method that calls for the measurement of the light and loaded condition of the barge in relation to the weight of the water supposedly displaced. (citing testimony of Lorenzo Bituin)