Litonjua Shipping
Company Inc. vs. National Seamen Board, G.R. No. L-51910, August 10, 1989
Subject: Transportation Law
FACTS
Petitioner
is the duly appointed local crewing managing office of the Fairwind Shipping
Corporation. On September 11, 1976 M/V Dufton Bay an ocean-going vessel of
foreign registry owned by the R.D. Mullion ship broking agency under charter by
Fairwind, while in the port of Cebu contracted the services (among others)
of Gregorio Candongo as Third Engineer for 12 months with a monthly wage of
US$500.00. The agreement was executed before the Cebu Area Manning Unit of the
NSB, after which respondent boarded the vessel.
On
December 28, 1976 before the expiration of contract, respondent was required to
disembark at Port Kilang, Malaysia. Describe in his seaman’s handbook is the
reason “by owner’s arrange.”
Condongo
filed a complaint against Mullion (Shipping company) for violation of contract
and against Litonjua as agent of shipowner. On February 1977, NSB rendered a
judgment by default for failure of petitioners to appear during the initial
hearing, rendering the same to pay Candongo because there was no sufficient or
valid cause for the respondents to terminate the service of the complainant.
Litonjua contends
that the shipowner, nor the charterer, was the employer of private respondent;
and that liability for damages cannot be imposed upon petitioner which was
a mere agent of the charterer.
ISSUE
Whether
or not the charterer Fairwind was properly
regarded as the employer of private respondent Candongo whom will be liable for
damages.
RULING
No, the charterer Fairwind was properly
regarded as the employer of private respondent Candongo whom will be liable for
damages.
Under
the law, a time charter, upon the other hand,
like a demise charter, is a contract for the use of a vessel for a specified
period of time or for the duration of one or more specified voyages. The owner
of a time-chartered vessel retains possession and control through the
master and crew who remain his employees. What the time charterer acquires is
the right to utilize the carrying capacity and facilities of the vessel and to
designate her destinations during the term of the charter. A voyage charter, or
trip charter, is simply a contract of affreightment, that is, a contract for
the carriage of goods, from one or more ports of loading to one or more ports
of unloading, on one or on a series of voyages. In a voyage charter, master and
crew remain in the employ of the owner of the vessel.
In
this case, NSB decision was affirmed by the SC. It is the respondent Litonjua Shipping Co., Inc. is
the authorized Philippine agent of Fairwind Shipping Corporation, charterer of
the vessel 'Dufton Bay, wherein complainant, served as 3rd Engineer from
17 September until disembarkation on December 28, 1976. It is also clear from
the complainant's wages account bearing the heading 'Fairwind Shipping
Corporation', signed by the Master of the vessel that the Philippine agency referred to herein
directed to pay the said withdrawn wages of $13.19 is no other than Litonjua
Shipping Company, Inc. Thus, Litonjua Shipping is liable for the damages before
private respondent.
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