G.R. No. L-49407/L-49469, August 19, 1988.
National Development Company (NDC) appointed Maritime Company of the Phils. (MCP) as its agent to manage and operate the vessel, “Doña Nati,” for and its behalf and account.
The vessel Doña Nati figured in a collision at Ise Bay, Japan with a Japanese vessel ‘SS Yasushima Maru’. As a result of which 550 bales of cargo of American raw cotton were lost and/or destroyed.
Development Insurance Surety Corporation (DISC), insurer, paid to the holder of the negotiable bills of lading. It then filed an action of recovery of the said amount against NDC and MCP.