Caltex vs. Sulpicio
Lines, 315 SCRA 709, G.R. No. 131166, September 30, 1999
Subject: Transportation Law
FACTS
MT Vector, a
tramping motor tanker owned and operated by Vector Shipping Corporation, left
the port of Limay, Bataan carrying petroleum products of Caltex Philippines,
Inc. (petitioner) en route to Masbate by a charter contract. While MV Doña Paz,
a passenger and cargo vessel owned and operated by Sulpicio Lines, left the
port of Tacloban headed for Manila.
On December 20,
1987, the two vessels collided in the open sea. Among those who perished were
public school teacher Sebastian Cañezal (47 years old) and his daughter Corazon
Cañezal (11 years old), both unmanifested passengers but proved to be on board
the vessel.
After
investigation, it was found that the MT Vector was at fault and responsible for
its collision with MV Doña Paz.
Sebastian
Cañezal's wife and mother filed a complaint for "Damages Arising from
Breach of Contract of Carriage" against Sulpicio Lines, Inc. with the RTC
of Manila. Sulpicio, in turn, filed a third-party complaint against Francisco
Soriano, Vector Shipping Corporation, and Caltex (Philippines), Inc.
The trial court
rendered a decision dismissing the third-party complaint against the
petitioner. On appeal, CA modified the trial court's ruling and included
petitioner Caltex as one of those liable for damages. Hence this petition.
ISSUE
Whether or not
Caltex, the charterer of a sea vessel, is liable for damages resulting from a
collision between the chartered vessel and a passenger ship.
RULING
No, Caltex, the
charterer of a sea vessel, is not liable for damages.
Under the law, a
charter party or a contract of affreightment is one by which the owner of a
ship or other vessel lets the whole or part of her to a merchant or other
person for the conveyance of goods, on a particular voyage, in consideration of
the payment of freight. If the charter is a contract of affreightment, which
leaves the general owner in possession of the ship as owner for the voyage, the
rights and the responsibilities of ownership rest on the owner. The charterer
is free from liability to third persons in respect of the ship.
In this case,
Caltex and Vector entered into a voyage charter, which retains the character of
the vessel (MT Vector) as a common carrier. The charterer of a vessel has no
obligation before transporting its cargo to ensure that the chartered vessel
complies with all legal requirements. The duty rests upon the common carrier simply
for being engaged in "public service”. The nature of the obligation of
Caltex demands ordinary diligence like any other shipper in shipping his cargo.
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