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Ipil | Araullo (1916) non-liability of the shipowner for the unlawful acts, crimes or
quasi crimes, committed by the captain and the crew can no
FACTS longer be maintained in its absolute and categorical terms.
Respondent, Yu Con (Yu Con), chartered the banca Maria o In maritime commerce, the shippers and passengers in making
owned by petitioner Narciso Lauron (Lauron) with Gilcerio Ipil contracts with the captain do so through the confidence they have
(Ipil) as its master and Juto Solamo (Solamo) as it supercargo to in the shipowner who appointed him; they presume that the owner
transport certain merchandise and money from the port of Cebu to made a most careful investigation before appointing him, and,
Catmon. above all, they themselves are unable to make such an
Yu Con loaded the merchandise and delivered the money, investigation, and even though they should do so, they could not
placed in a trunk, to Ipil and Solamo. obtain complete security, inasmuch as the shipowner can,
Allegedly because there was no more room for Yu Cons trunk, Ipil and whenever he sees fit, appoint another captain instead.
o Thus, it is only proper that the shipowner should be made liable.
Solamo transferred the money to their own trunk in the stateroom.
Before the ship could sail, the trunk and the money placed therein
Coastwise Lighterage Corporation vs. Court of Appeals | Francisco
disappeared.
(1995)
ISSUES/HELD
FACTS
Are the petitioners liable for the loss? YES.
Pag-asa Sales Inc. (Pag-asa) contracted with petitioner,
Coastwise Lighterage Corporation (Coastwise), to transport molasses
RATIONALE
from Negros Occidental to Manila.
It is therefore beyond all doubt that the loss of the money Upon arriving in Manila Bay, one of the barges used struck a
occurred through the manifest fault and negligence of Ipil and sunken object which caused water to leak in through a hole.
Solamo.
The molasses was contaminated and rendered unfit for the use it
o They failed to take the necessary precautions in order that the
was intended.
stateroom containing the trunk in which they kept the money
Pag-asa filed a claim with and was paid by respondent,
should be properly guarded by members of the crew and they also
Philippine General Insurance Company (Philgen).
did not expressly station some person inside the stateroom for the
guarding and safe-keeping of the trunk. Philgen then filed an action before the RTC; the latter ruled in
o All of these circumstances, together with that of its having been favor of Philgen and this decision was affirmed by the CA.
impossible to know who took the trunk and the money, make the Hence, this petition.
conduct of Ipil, Solamo, and the other crew members eminently
supicious and prevent our holding that the disappearance or loss of ISSUES/HELD
the money was due to a fortuitous event, to force majeure. Was Coastwise transformed to a private carrier by virtue of the contract
Ipil and Solamo were depositaries of the sum in question and, having of affreightment? NO.
failed to exercise the diligence required by the nature of the obligation Did Coastwise exercise the necessary diligence? NO.
of safe-keeping assumed by them and by the circumstances of the time Was Philgen subrogated to the rights of Pag-asa? YES.
and the place, it is evident that they are liable for its loss or
misplacement and must restore it. RATIONALE
With respect to Lauron, he is also liable in accordance with the 1ST ISSUE
provisions of the Code of Commerce in force because, as the Although a charter party may transform a common carrier into
proprietor and owner of the vessel who executed a contract of a private one, the same however is not true in a contract of
carriage with Yu Con, there occurred the loss, theft, or robbery of the affreightment on account of the distinctions between the two.
P450 that belonged to Yu Con through the negligence of Ipil and o Under the demise or bareboat charter of the vessel, the
Solamo and which theft does not appear to have been committed by a charterer will generally be regarded as the owner for the
person not belonging to the craft. voyage or service stipulated but to create a demise, the
The old Code of Commerce absolved the shipowner from owner of a vessel must completely and exclusively
liability for the negligence of the captain and its crew but, in relinquish possession, command and navigation thereof to
the light of the principles of modern law, this doctrine on the the charterer, anything short of such a complete transfer is a
Page 1 of 7
contract of affreightment (time or voyage charter party) or not a A ships captain must be accorded a reasonable measure of
charter party at all. discretionary authority to decide what the safety of the ship and of
o On the other hand, a contract of affreightment is one in which its crew and cargo specifically requires on a stipulated ocean
the owner of the vessel leases part or all of its space to voyage.
haul goods for others and under such contract the general
owner retains the possession, command and navigation of FACTS
the ship, the charterer or freighter merely having use of the Captain Tayong was hired by Trenda World Shipping and Sea Horse Ship
space in the vessel in return for his payment of the charter Management through Inter-Orient Maritime Enterprises for a period of 1
hire. year.
The nature of the contract as an affreightment is apparent and this is He took command of Inter-Orients vessel in Hong Kong.
bolstered by the admission that Coastwise has made; as such, it has o He was instructed to replenish bunker and diesel fuel, to sail
not been transformed into a private carrier. forthwith to Richard Bay, South Africa, and there to load 120, 000
2ND ISSUE metric tons of coal.
Being a common carrier, Coastwise failed to exercise extraordinary Since a storm would hit Hong Kong, precautionary measures were taken
diligence. to secure the vessels safety considering that the turbo-charger was
Coastwise violated Art. 6091 of the Code of Commerce, which leaking and the vessel was 14 years old.
subsidiarily governs common carriers, by embarking on a Captain Tayong followed-up the requisition by the former Captain for
voyage with an unlicensed patron, Jesus R. Constatntino. supplies of oxygen and acetylene, necessary for the welding-repair of
o It cannot safely claim to have exercised extraordinary the turbo-charger and economizer.
diligence, by placing a person whose navigational skills are The vessel sailed to Singapore.
questionable, at the helm of the vessel which eventually o On the way to Singapore, the vessel stopped in the middle of the
met the fateful accident. ocean for 6 hours and 45 minutes due to a leaking economizer.
o It may also logically, follow that a person without license to o He was instructed to shut down the economizer and use the
navigate, lacks not just the skill to do so, but also the utmost auxiliary boiler instead.
familiarity with the usual and safe routes taken by seasoned and When the vessel arrived in Singapore, the Chief Engineer reminded
legally authorized ones.
Captain Tayong that the oxygen and acetylene supplies had not been
3RD ISSUE
delivered.
Upon payment by PhilGen to Pag-asa, the former was o Upon inquiry, the Captain was informed that the supplies could only
subrogated into all the rights which Pag-asa may have had be delivered on Aug. 1 as the stores had closed.
against the carrier, Coastwise.
Captain Tayong called the shipowner, Seahorse Ship Management and
o If the insured property is destroyed or damaged through the fault or
informed them that the departure of the vessel for South Africa may be
negligence of a party other than the assured, then the insurer,
affected because of the delay in the delivery of the supplies.
upon payment to the assured will be subrogated to the rights of the
o He was advised to contact Mr. Clark, the Technical Director.
assured to recover from the wrongdoer to the extent that the
o According to Mr. Clark, after being informed that the ship cannot
insurer has been obligated to pay.
o Payment by the insurer to the assured operated as an travel without the supplies, Captain Tayong agreed with him when
he said by shutting off the water to the turbo chargers and using
equitable assignment to the former of all remedies which
the auxiliary boilers, there should be no further problem.
the latter may have against the third party whose
o According to Captain Tayong, he was informed by Sea Horse to wait
negligence or wrongful act caused the loss.
for the supplies.
Inter-Orient Maritime Enterprises, Inc. vs. NLRC | Feliciano (1994) Captain Tayong immediately sailed for South Africa upon the delivery of
the supplies.
RATIO DECIDENDI Upon reaching South Africa, Captain Tayong was instructed to turn-over
his post to the new captain. He was thereafter repatriated to the
1
Art. 609. Captains, masters, or patrons of vessels must be Filipinos, have legal capacity to
Philippines.
contract in accordance with this code, and prove the skill capacity and qualifications necessary to o He was not informed of the charges against him.
command and direct the vessel, as established by marine and navigation laws, ordinances or He then instated a complaint for illegal dismissal.
regulations, and must not be disqualified according to the same for the discharge of the duties of
the position.
Page 2 of 7
ISSUES/HELD
WoN Captain Tayong was illegally dismissed? YES. FACTS
On March 12, 1920, 2K cases of petroleum and 8,473 cases of
RATIONALE gasoline were loaded in the motor boat Alfonso
Confidential and managerial employees cannot be arbitrarily dismissed o The loading was done without the permission from the customs
at any time, and without cause as reasonably established in an authorities
appropriate investigation. o The cases were loaded by means of straps supporting 10-12
o They are also entitled to security of tenure, fair standards of cases at a time
employment and the protection of labor laws. o The cases were placed in the hold of the ship, which is 14ft
The captain of a vessel is a confidential and managerial employee. from the boiler of the main engine and 4ft from the boiler of the
A captain commonly performs 3 distinct roles: (1) he is a general agent smaller engine
of the shipowner; (2) he is also commander and technical director of On March 13, the smaller engine was in operation preparatory to the
the vessel; and (3) he is a representative of the country under whose departure
flag he navigates. Subsequently, a fire broke out with an explosion on board Alfonso
o The most important is the role performed by the captain as the followed by a violent expulsion of gasoline and petroleum
commander of the vessel. Such a role analogous to that of Chief Due to the magnitude of the fire and the inflammability of the materials
Executive Officer of a present-day corporate enterprise. and the proximity of the steamer Y. Sontua, the fire spread to the said
A ships captain must be accorded a reasonable measure of steamer
discretionary authority to decide what the safety of the ship and of its Sontua brought this action to recover from Ossorio, the owner of
crew and cargo specifically requires on a stipulated ocean voyage. Alfonso, alleging that the damages were due to the negligence of the
o The captain is held responsible for such safety. agents and employees of Ossorio
The captain has control of all departments of service in the vessel, and Ossorio contended that the damages were caused by a fortuitous event
reasonable discretion as to its navigation. and are not imputable to his or any of his
It is the right and duty of the captain, in the exercise of sound agents/employees/mandataries negligence
CFI ruled in favor of Sontua and held that:
discretion and in good faith, to do all things with respect to the vessel
and its equipment and conduct of the voyage which are reasonably o The explosion was due to the negligence of the persons in charge
necessary for the protection and preservation of the interests under his of Alfonso
charge. o Ossorio is liable for the negligence of his agents and employees
o It is a basic principle of admiralty law that in navigating a
merchantman, the master must be left free to exercise his own best ISSUES/HELD
judgment. WoN the explosion was due to the negligence of the persons in charge
o The requirements of safe navigation compel us to reject any of Alfonso? YES.
suggestion that the judgment and discretion of the captain of a WoN Ossorio, the owner of the motorboat, was liable for the negligence
vessel may be confined within a straight jacket. of his agents and employees? YES.
The master is entitled to delay for such a period as may be reasonable
under the circumstances. RATIONALE
Captain Tayong had reasonable grounds to believe that the safety of Issue #1
the vessel and crew required him to wait for the delivery of the supplies Expert testimony introduced by Sontua shows the explosion and fire,
needed. which caused the damages, are imputable to the negligence of the
o The vessel had stopped mid-ocean for 6 hours and 45 minutes on persons having charge of Alfonso at that time. It was shown that:
its way to Singapore because of its leaking economizer. o Due to the manner by which the cases were loaded, the cases
o Captain Tayong did not maliciously and arbitrarily delay the voyage would receive bumps resulting in damage to the cans and
to South Africa. consequent leakage (use of straps)
The decision of Captain Tayong did not constitute a legal basis for his o The gases formed by the volatilization are apt to accumulate in a
summary dismissal. compartment without sufficient ventilation (hold of a ship)
ISSUES/HELD
WON the captain of Kudat is liable? YES.
RATIONALE
The captain who commanded the steamer Kudat failed to comply with
the contract for towage and acted for contravention of what had been
stipulated therein between the owner of the lorcha in tow and the
agents who represented the owners of the steamer, and when
abandoning the lorcha in mid-ocean with the full knowledge that it
would disappear and become a loss, he acted with marked negligence
and a perfect knowledge of the loss and damage he was about to cause
the owner. Therefore, pursuant to 1101 and 1601 of the CC, the owner
of the lorcha must be indemnified, the contract of towage involving the
obligation to use due diligence the omission of which would imply fault
or negligence on the part of the obligee, because the
lorcha Nevada was abandoned with the intent of casting her adrift to
become a total loss.
Article 624 of the Code of Commerce imposes on a captain, in case he
has been wrecked or the cargo of his vessel damaged, the duty of
making the corresponding protest before the proper authority at the
first port where the vessel touches, within the twenty four-hours
following his arrival.
The captain of the Kudat did not make any protest before any officer or
competent authority at Iloilo stating the reasons which compelled him
to abandon the lorcha. On the other hand, the master or patron of the
lost lorcha complied with this duty imposed by law and appeared
before the collector of customs of Iloilo and set forth his protest.
Based on Articles 586 and 567 of the Code of Commerce, therefore, the
aforesaid firm is the only party bound to indemnify the owner of
the Nevada in the amount of the damages sustained by him through
the loss of the lorcha.
Page 7 of 7