Case Digest: Sweet Lines vs. Court of Appeals, 121 SCRA 769, G.R. No. L-46340

 

Sweet Lines vs. Court of Appeals, 121 SCRA 769, G.R. No. L-46340, April 28, 1983

Subject: Transportation Law

FACTS

Private respondents purchased first- class tickets from petitioner at the latter's office in Cebu City. They were to board petitioner's vessel, M/V Sweet Grace, bound for Catbalogan, Western Samar. Instead of departing at the scheduled hour of about midnight on July 8, 1972, the vessel set sail at 3:00 A.M. of July 9, 1972 only to be towed back to Cebu due to engine trouble, arriving there at about 4:00 P.M. on the same day. Repairs having been accomplished, the vessel lifted anchor again on July 10, 1972 at around 8:00 A.M.

Instead of docking at Catbalogan, which was the first port of call, the vessel proceeded direct to Tacloban at around 9:00 P.M. of July 10, 1972. Private respondents had no recourse but to disembark and board a ferryboat to Catbalogan.

Hence, this suit for damages for breach of contract of carriage which the Trial Court, affirmed by respondent Appellate Court. Hence this petition.

ISSUE

Whether or not the owner of the vessel and the ship agent is liable for the acts of the captain for damages for by-passing a court of call without previous notice.

RULING

Yes, the owner of the vessel and the ship agent is liable for the acts of the captain for damages for by-passing a court of call without previous notice.

Article 614 of the Code of Commerce states that a captain who, having agreed to make a voyage, fails to fulfill his undertaking, without being prevented by fortuitous event or force majeure, shall indemnify all the losses which his failure may cause, without prejudice to criminal penalties which may be proper.

In this case, there was no fortuitous event or force majeure which prevented the vessel from fulfilling its undertaking of taking private respondents to Catbalogan. The voyage to Catbalogan was "interrupted" by the captain upon instruction of management. The "interruption" was not due to fortuitous event or for majeure nor to disability of the vessel. Having been caused by the captain upon instruction of management, the passengers' right to indemnity is evident. The owner of a vessel and the ship agent shall be civilly liable for the acts of the captain.

Case Digest: Inter-Orient vs. NLRC, 235 SCRA 268, G.R. No. 115286

 

Inter-Orient vs. NLRC, 235 SCRA 268, G.R. No. 115286, August 11, 1994

Subject: Transportation Law

FACTS

Jeremias Pineda was contracted to work as Oiler on board the vessel, MV Amazonia, from Dec. 21, 1988  to Sept. 28,1989. When he finished his contract, he was discharged from the port of Dubai for repatriation to Manila. During his layover in Bangkok, Thailand, he disembarked on his own free will and failed to join the connecting flight to Hongkong. During which, he was shot by a Thai Policeman and died. The police report submitted to the Philippine Embassy in Bangkok confirmed that it was Pineda who ‘approached and tried to stab the police sergeant with a knife and that therefore he was forced to pull out his gun and shot Pineda.

The deceased’s mother, Constancia Pineda, filed for death compensation benefits against Interorient Maritime Enterprises, Inc. and it foreign principal, Fircroft Shipping Corporation and the Times Surety and Insurance Co., Inc. They averred that the deceased seaman was suffering from mental disorder aggravated by threats on his life by his fellow seamen, the Ship Captain should not have allowed him to travel alone.

Respondent agency averred that they are not liable to pay any death/burial benefits pursuant to the provisions of Par. 6, Section C, Part II, POEA-SEC which states that ‘no compensation shall be payable in respect of any injury, incapacity, disability or death resulting from a willfull act on his own life by the seaman’; that the deceased seaman died due to his own wilfull act in attacking a policeman in Bangkok who shot him in self-defense.” 

ISSUE

Whether or not the local crewing or manning agent and its foreign principal are liable for the death of a Filipino seaman-employee who, after having been discharged, was killed in-transit while being repatriated home.

RULING

Yes, the local crewing or manning agent and its foreign principal are liable for the death of a Filipino seaman-employee. Though the termination of the employment contract was duly effected in Dubai, still, the responsibility of the foreign employer to see to it that Pineda was duly repatriated to the point of hiring subsisted.

Section 4, Rule VIII of the Rules and Regulations Governing Overseas Employment clearly provides for the duration of the mandatory personal accident and life insurance covering accidental death, dismemberment and disability of overseas workers: “Section 4. Duration of Insurance Coverage.—The minimum coverage shall take effect upon payment of the premium and shall be extended worldwide, on and off the job, for the duration of the worker’s contract plus 60 calendar days after termination of the contract of employment’, provided that in no case shall the duration of the insurance coverage be less than one year.”

The foreign employer may not have been obligated by its contract to provide a companion for a returning employee, but it cannot deny that it was expressly tasked by its agreement to assure the safe return of said worker. The uncaring attitude displayed by petitioners who, knowing fully well that its employee had been suffering from some mental disorder, nevertheless still allowed him to travel home alone is appalling.

Case Digest: Heirs of Santos vs. Court of Appeals, 186 SCRA 649, G.R. No. 51165

 

Heirs of Santos vs. Court of Appeals, 186 SCRA 649, G.R. No. 51165, June 21, 1990

Subject: Transportation Law

FACTS

This is a complaint originally filed on October 21, 1968 and amended on October 24, 1968 by the heirs of Delos Santos and others as pauper litigants against the Compania Maritima, for damages due to the death of several passengers as a result of the sinking of the vessel of defendant, the M/V 'Mindoro' when it met typhoon 'Welming' on the Sibuyan Sea, Aklan on November 4, 1967.

The plaintiff of the case alleged that the ship was overloaded evidenced by letters, radiograms, stenographic notes and corroborated testimonies of surviving passengers of M/V Mindoro.

Defendants alleged that the ship's compliment (sic) and crew were all complete and the vessel was in seaworthy condition. If the M/V Mindoro' sank, it was through force majeure.

The trial court sustained the position of private respondent Compania Maritima in view of lack of sufficient evidence, the case be, as it is hereby DISMISSED. The counterclaim was also DISMISSED.

On appeal, the appellate court affirmed the decision of trial court. While it found that there was concurring negligence on the part of the captain which must be imputable to Maritima, the CA ruled that Maritima cannot be held liable in damages based on the principle of limited liability of the shipowner or ship agent under Article 587 of the Code of Commerce.

ISSUE

Whether or not Article 587 of the Code of Commerce is only for the goods which the vessel carries and do not include the passengers.

RULING

No, Article 587 of the Code of Commerce does not apply only for the goods but also include the passengers.

Under the law, a shipowner or agent has the right of abandonment; and by necessary implication, his liability is confined to that which he is entitled as of right to abandon-"the vessel with all her equipment and the freight it may have earned during the voyage".

In this case, contrary to the petitioners' supposition, the limited liability doctrine applies not only to the goods but also in all cases like death or injury to passengers wherein the shipowner or agent may properly be held liable for the negligent or illicit acts of the captain. Article 587 speaks only of situations where the fault or negligence is committed solely by the captain. In cases where the shipowner is likewise to be blamed, Article 587 does not apply instead it shall be covered by the provisions of the New Civil Code on Common Carriers. Evidence on record shows that Maritima's lack of extraordinary diligence coupled with the negligence of the captain as found by the appellate court were the proximate causes of the sinking of M/V Mindoro. Hence, Maritima is liable for the deaths and injury of the victims.

Case Digest: National Development Co. vs. CA, G.R. No. L-49407

 

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.

Case Digest: Macondray vs. Provident, 445 SCRA 644, G.R. No. 154305

 

Macondray vs. Provident, 445 SCRA 644, G.R. No. 154305, December 09, 2004

Subject: Transportation Law

FACTS

On February 16, 1991, at Vancouver, B.C. Canada, CANPOTEX SHIPPING SERVICES LIMITED INC., of Saskatoon, Saskatchewan, (hereinafter the SHIPPER), shipped and loaded on board the vessel M/V 'Trade Carrier', 5000 metric tons of Standard Grade Muriate of Potash in bulk for transportation to and delivery at the port of Sangi, Toledo City, Cebu, in favor of ATLAS FERTILIZER CORPORATION, consignee.

When the shipment arrived, it was found to have sustained losses/shortage of 476.140 metric tons. Provident paid losses. Formal claims were then filed with Trade & Transport and Macondray but the same refused and failed to settle the same.

Summons was UNSERVED to defendant TRADE AND TRANSPORT at the given address for reason that TRADE AND TRANSPORT is no longer connected with Macondray & Co. Inc. and is not holding office at said address as alleged by Ms. Guadalupe Tan. For failure to effect service of summons the case against TRADE & TRANSPORT was considered dismissed without prejudice.

Defendant MACONDRAY filed ANSWER, denying liability over the losses alleging that it have NO absolute relation with defendant TRADE AND TRANSPORT.

The trial court ruled in favor of the petitioner. On appeal, the CA affirmed the trial court's finding that petitioner was not the agent of Trade and Transport. The appellate court ruled, however, that petitioner is liable for the shortages of the shipment, because the latter was the ship agent of Canpotex Shipping Services Ltd. - - the shipper and charterer of the vessel M/V Trade Carrier.

ISSUE

Whether or not Macondray is liable for loss which was allegedly sustained by the plaintiff.

RULING

Yes, it is liable as the ship’s agent.

Article 586 of the Code of Commerce states that a ship agent is "the person entrusted with provisioning or representing the vessel in the port in which it may be found." Article 587 of the Code of Commerce states that the ship agent shall also be civilly liable for the indemnities in favor of third persons which may arise from the conduct of the captain in the care of the goods which he loaded on the vessel, but he may exempt himself therefrom by abandoning the vessel with all her equipment and the freight it may have earned during the voyage.

In this case, petitioner "was appointed as local agent of the vessel, which duty includes arrangement for the entrance and clearance of the vessel." Hence, pursuant to Article 586 of the Code of Commerce, whether acting as agent of the owner of the vessel or as agent of the charterer, petitioner will be considered as the ship agent, it is liable as such, as long as the latter is the one that provisions or represents the vessel.

Case Digest: Switzerland vs. Ramirez, 96 SCRA 297, G.R. No. L48264

 

Switzerland vs. Ramirez, 96 SCRA 297, G.R. No. L48264, February 21, 1980

Subject: Transportation Law

FACTS

Switzerland insured a shipment of 60,000 bags of Urea Nitrogen from Japan to the Philippines. The shipment was discharged from the vessel into lighters owned by Mabuhay Brokerage Co., Inc.

When the shipment was delivered to the consignee, it was found to have sustained losses and damages. Switzerland, as the insurer, paid the consignee for the damages and became subrogated to their rights.

Switzerland filed an admiralty case against the carrier (Oyama Lines), the local agent of the carrier (Citadel Lines), and the lighterage company (Mabuhay Brokerage Co., Inc.). After trial, the trial court rendered decision in favor of petitioner as against therein defendant Oyama Shipping Co., Ltd., but absolving Citadel Lines, Inc. and Mabuhay Brokerage Co., Inc. from liability. 

ISSUE

Whether or not the respondent Citadel Lines, Inc., the local agent of a foreign ocean-going vessel, the S/S "St. Lourdes", may be held primarily liable for the loss/damage found to have been sustained by subject shipment while on board and/or still in the custody of the said vessel.

RULING

Yes, the respondent Citadel Lines, Inc. may be held primarily liable for the loss/damage.

Under the Code of Commerce, it provides that the ship agent shall also be liable for the indemnities in favor of third persons which arise from the conduct of the captain in the care of the goods which the vessel carrier.

In this case, it appears that the Citadel Lines is the ship agent for the vessel S/S "St. Lourdes" at the port of Manila, it is, therefore, liable to the petitioner, solidarily with its principal, Oyama Shipping Co., Ltd., in an amount representing the value of the goods lost and or damaged. The insolvency of Oyama Lines has no bearing on the instant case insofar as the liability of Citadel Lines, Inc. is concerned. The law does not make the liability of the ship agent dependent upon the solvency or insolvency of the ship owner.

Case Digest: Caltex vs. Sulpicio Lines, G.R. No. 131166

 

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.