Under Article 866 of the RA Civil Code, The carrier shall bear liability for loss, shortage of and damage to the cargo or luggage which, following their acceptance for carriage, occurs prior to transferring thereof to the consignee, his or her authorized person or a person authorized to receive the cargo, unless it proves that the loss, shortage of or damage to the cargo or luggage has occurred under circumstances that the carrier could not prevent, and the elimination of which was beyond its control.
The carrier shall compensate for the damage to the cargo or luggage inflicted in the course of carriage:
1) in the amount of value of lost or missing cargo or luggage in case of loss or shortage of cargo or luggage;
2) in case of damage to cargo or luggage – in the amount equal to the decrease of its value of such as a result of damage, and in case of impossibility of repair of cargo or luggage – in the full amount thereof;
3) in the amount of declared value of cargo or luggage in case of provision thereof by declaration of its value.
The value of cargo or luggage shall be determined by the price indicated in the accounts of the seller or provided for in the contract, and in case of absence of a condition on the price in the account or the contract – by the price which is charged for similar goods under comparable circumstances.
Together with compensation of damage inflicted as a result of loss, shortage of and damage to the cargo or luggage the carrier shall reimburse the consignor (consignee) for the transportation fee that has been charged for carriage of lost, missing or damaged cargo or luggage where it is not included in the value of the cargo.
Unilateral documents drawn up by the carrier on reasons of damage of the cargo and luggage (commercial act, simple act, etc.) shall, in case of dispute, be subject to examination by the court together with other documents evidencing such circumstances that can serve as a ground for liability of the carrier, consignor or consignee of cargo or luggage.
