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    ORIENT FREIGHT INTERNATIONAL, INC v. KEIHIN-EVERETT FORWARDING COMPANY, INC

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    Yvonne Mallari
    Orient Freight was subcontracted by Keihin-Everett to provide trucking services for Matsushita. When a truck carrying Matsushita goods was hijacked, Orient Freight failed to properly investigate and report the true facts of the incident to Keihin and Matsushita in a timely manner. As a result, Matsushita terminated its contract with Keihin, causing Keihin to lose income. The court ruled that Orient Freight was negligent for failing to disclose the full details of the hijacking incident and was responsible for the damages incurred by Keihin.

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    ORIENT FREIGHT INTERNATIONAL, INC v. KEIHIN-EVERETT FORWARDING COMPANY, INC

    Uploaded by

    Yvonne Mallari
    47 views2 pages
    Orient Freight was subcontracted by Keihin-Everett to provide trucking services for Matsushita. When a truck carrying Matsushita goods was hijacked, Orient Freight failed to properly investigate and report the true facts of the incident to Keihin and Matsushita in a timely manner. As a result, Matsushita terminated its contract with Keihin, causing Keihin to lose income. The court ruled that Orient Freight was negligent for failing to disclose the full details of the hijacking incident and was responsible for the damages incurred by Keihin.

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    Orient Freight was subcontracted by Keihin-Everett to provide trucking services for Matsushita. When a truck carrying Matsushita goods was hijacked, Orient Freight failed to properly investigate and report the true facts of the incident to Keihin and Matsushita in a timely manner. As a result, Matsushita terminated its contract with Keihin, causing Keihin to lose income. The court ruled that Orient Freight was negligent for failing to disclose the full details of the hijacking incident and was responsible for the damages incurred by Keihin.

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    © All Rights Reserved
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    47 views2 pages

    ORIENT FREIGHT INTERNATIONAL, INC v. KEIHIN-EVERETT FORWARDING COMPANY, INC

    Uploaded by

    Yvonne Mallari
    Orient Freight was subcontracted by Keihin-Everett to provide trucking services for Matsushita. When a truck carrying Matsushita goods was hijacked, Orient Freight failed to properly investigate and report the true facts of the incident to Keihin and Matsushita in a timely manner. As a result, Matsushita terminated its contract with Keihin, causing Keihin to lose income. The court ruled that Orient Freight was negligent for failing to disclose the full details of the hijacking incident and was responsible for the damages incurred by Keihin.

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    © All Rights Reserved
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    Title: ORIENT FREIGHT INTERNATIONAL, INC v.

    KEIHIN-EVERETT FOR-
    WARDING COMPANY, INC
    G. R No. 176841 June 29, 2010
    Petitioners: ORIENT FREIGHT INTERNATIONAL, INC
    Respondents: KEIHIN-EVERETT FORWARDING COMPANY, INC

    FACTS:
    Keihin-Everett entered into a Trucking Service Agreement with Matsushita,
    they would provide services for Matsushita’s trucking requirements. They sub-
    contracted the services to Orient Freight.

    In April 2002, Matsushita called Keihin Sales Manager about a column issue of
    the tabloid newspaper Tempo, where the police intercepted a stolen truck filled
    with shipment of video monitors and CCTV systems owned by Matsushita. Kei-
    hin directed Orient Freight to investigate what happened, Orient Freight stated
    the the report was blown out of proportion; the truck had a breakdown and
    was towed.

    When the shipment arrived in Japan, it was discovered that 10 pallets of the
    shipment's 218 cartons, worth US$34,226.14, were missing. Matsushita termi-
    nated its In-House Brokerage Service Agreement with Keihin. Keihin then de-
    manded indemnity for lost income to Orient Freight due to their mishandling of
    the situation that terminated Keihin’s contract with Matsushita.

    ISSUE:
    whether Orient Freight, Inc. was negligent for failing to disclose the facts sur-
    rounding the hijacking incident

    RULING:
    YES. Under Article 1170 of the Civil Code, liability for damages arises when
    those in the performance of their obligations are guilty of negligence,
    among others. Negligence here has been defined as "the failure to observe
    that degree of care, precaution and vigilance that the circumstances just
    demand, whereby that other person suffers injury.”

    The failure of Orient Freight to investigate properly the incident and make a
    timely report constitutes negligence. Evidently, Orient Freight failed to exercise
    due diligence in disclosing the true facts of the incident to plaintiff Keihin and
    Matsushita. As a result, plaintiff Keihin suffered income losses by reason of
    Matsushita's cancellation of their contract which primarily was caused by the
    negligence of Orient Freight.

    Despite the circumstances which would have cautioned petitioner to act with
    care while investigating and reporting the hijacking incident, petitioner failed to
    do so. Petitioner is responsible for the damages that respondent incurred due
    to the former's negligent performance of its obligation.

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