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Haiyin , who lives in Kobe Japan shipped on board a vessel owned by Guyin, 1000 cases of canned milk consigned to Haigu in Iloilo.

Haiyin , who lives in Kobe Japan shipped on board a vessel owned by Guyin, 1000 cases of canned milk consigned to Haigu in Iloilo. Upon arrival, the vessel discharged the canned milk into the custody and possession of the arrastre operator appointed by Bureau of Customs. In the Bill of lading, it was stipulated that the vessel is no longer liable for cargo upon its delivery to the hands of the customs authorities. The cargo checker of the arrastre found the cargo to be in good order. Upon delivery to consignee, a marine surveyor found 200 cases of milk missing. Haigu sued Guyin for the value of the missing cases on the ground that under the contract of carriage Guyin was obliged to deliver the cargo safely to the consignee and that the stipulation limiting liability of the carrier is contrary to morals and public policy.

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