FACTS:

On July 19, 1990, CARDIA shipped a large quantity of cement on board the vessel M/V Pakarti Tiga. The shipment was insured with FGU and PIONEER. The vessel was owned by PAKARTI and chartered to SHINWA, who further chartered it to REGENCY. When the vessel arrived at the Port of Manila, 43,905 bags of cement were found to be in bad condition. FGU and PIONEER, as co-insurers, paid the consignee, HEINDRICH, and became subrogated to all its rights. In 1991, FGU and PIONEER filed a complaint for damages. The RTC dismissed the complaint but the CA modified the decision and held the defendants solidarity liable for 70% of the respondents' claim. ACENAV, one of the defendants, argued that it cannot be held liable since it was not a party to the bill of lading, and that its principal, CARDIA, was not impleaded in the suit.

ISSUES:

RULING:

PRINCIPLES:

• An agent, as a real party-in-interest, can be held liable for damages arising from its agency relationship.

• The liability of an agent may extend to damages resulting from the agent's failure to exercise due diligence in the performance of its duties.