National Development Co. vs. CA and
Development Insurance & Surety Corp., G.R. No. L-49407 August 19, 1988
Subject: Transportation Law
FACTS
On September 13,
1962, defendant NDC as the first preferred mortgagee of three ocean going
vessels including one with the name 'Dona Nati' appointed defendant MCP as its
agent to manage and operate said vessel for and in its behalf and account.
On February 28,
1964 the E. Philipp Corporation of New York loaded on board the vessel
"Dona Nati" at San Francisco, California, a total of 1,200 bales of
American raw cotton consigned to the order of Manila Banking Corporation,
Manila and the People's Bank and Trust Company acting for and in behalf of the
Pan Asiatic Commercial Company, Inc., who represents Riverside Mills
Corporation. Also loaded on the same vessel at Tokyo, Japan, were the cargo of
Kyokuto Boekui, Kaisa, Ltd., consigned to the order of Manila Banking
Corporation consisting of 200 cartons of sodium lauryl sulfate and 10 cases of
aluminum foil.
En route to
Manila the vessel Dofia Nati figured in a collision at Ise Bay, Japan with a
Japanese vessel 'SS Yasushima Maru'. The plaintiff had paid as insurer the
total amount of P364,915.86 to the consignees or their successors-in-interest,
for the said lost or damaged cargoes.
Hence, the
plaintiff filed this complaint to recover said amount from the defendants-NDC
and MCP as owner and ship agent respectively, of the said 'Dofia Nati'
vessel.
ISSUE
Whether or not
the ship-owner is liable for damages.
RULING
Yes, the
ship-owner is liable for damages.
Under the law of
the Code of Commerce, particularly Articles 826 to 839, the shipowner or
carrier, is not exempt from liability for damages arising from collision due to
the fault or negligence of the captain.
In this case, primary
liability is imposed on the shipowner or carrier in recognition of the
universally accepted doctrine that the shipmaster or captain is merely the
representative of the owner who has the actual or constructive control over the
conduct of the voyage. The Code of Commerce provides that where collision is
imputable to the personnel of a vessel, the owner of the vessel at fault, shall
indemnify the losses and damages incurred after an expert appraisal. But more
in point to the instant case is Article 827 of the same Code, which provides
that if the collision is imputable to both vessels, each one shall suffer its
own damages and both shall be solidarily responsible for the losses and damages
suffered by their cargoes.
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