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Case Digest: Julius C. Ouano vs. CA and San Miguel, G.R. No. 142025

 

Julius C. Ouano vs. CA and San Miguel, G.R. No. 142025, July 4, 2002

Subject: Transportation Law


FACTS

San Miguel Corporation (SMC) entered into a Time Charter Party Agreement with Julius Ouano's J. Ouano Marine Services for the M/V Doa Roberta from June 1, 1989, to May 31, 1991, to transport SMC's beverage products. The agreement held Ouano responsible for crew negligence and shortlanded shipments. On November 12, 1990, despite Typhoon Ruping warnings, SMC issued sailing orders to Captain Inguito, leading to the sinking of M/V Doa Roberta on November 13, 1990. Ouano alleged SMC's negligence, initiating legal proceedings. Ouano, in lieu of the deceased captain, filed a Marine Protest. In response, Ouano filed an answer with cross-claim, alleging SMC's negligence as the proximate cause. The trial court found SMC liable, but both SMC and Ouano appealed.

ISSUE

Whether or not the petitioner is liable for the loss of the M/V Doa Roberta, the deaths of its crew, and damages to the cargo.

RULING

Yes, Ouano was held vicariously liable for Captain Inguito's negligence, lacking due diligence in selection and supervision. The Supreme Court upheld the appellate decision, affirming Ouano's liability, but absolving SMC of responsibility. Ouano was ordered to pay damages to the heirs of officers and crew members, excluding Captain Sabiniano Inguito, and indemnify SMC for cargo damages amounting to P10,278,542.40. The ruling emphasized Ouano's failure to ensure the vessel's seaworthiness and his vicarious liability for Captain Inguito's negligence, while dismissing SMC's liability for the sinking.

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