Case Digest (G.R. No. 217311)
Facts:
In 2002, Candano Shipping Lines, Inc. entered into a time charter agreement with Apo Cement Corporation for the carriage of 31,250 bags of cement (1,250 metric tons) aboard the vessel M/V Romeo, with the cargo insured by CGU International Insurance, PLC. On July 14, 2002 at around midnight, as M/V Romeo was exiting the pier in the Apo channel, it was struck on its starboard midsection by the bow of M/V Aleson Carrier 5, owned by Aleson Shipping Lines, Inc. The collision created a gaping hole in M/V Romeo, causing it to sink within five minutes and resulting in a P3,427,500 loss. Apo Cement’s demand for indemnity from both shipping companies went unanswered, prompting CGU Insurance to pay the claim and file an action for actual damages and attorney’s fees against Candano and Aleson before the Regional Trial Court (RTC). Aleson Shipping denied liability, arguing that only Candano was at fault, while Candano asserted it had exercised extraordinary diligence, blamed Aleson’s captainCase Digest (G.R. No. 217311)
Facts:
- Parties and Contractual Background
- In 2002, Candano Shipping Lines, Inc. (Candano) chartered its vessel M/V Romeo to Apo Cement Corporation (Apo) for cement transport; cargo of 31,250 bags (1,250 MT) was insured by CGU International Insurance (CGU).
- Aleson Shipping Lines, Inc. (Aleson) owned M/V Aleson Carrier 5; no direct carriage contract with Apo or CGU.
- Collision and Aftermath
- On July 14, 2002 at midnight, M/V Romeo, exiting Apo channel, was struck on its side by the bow of M/V Aleson, causing Romeo to sink in five minutes and loss of cargo valued at ₱3,427,500.
- Apo demanded payment from Candano and Aleson; upon nonpayment, CGU settled the loss and sued both carriers for damages and attorney’s fees.
- Trial Proceedings and Evidence
- Aleson denied fault, attributing negligence to Candano and asserting crew exercised due care; Candano claimed seaworthiness and blamed Aleson’s master for negligent command.
- CGU’s investigator Lopez and Candano’s operations manager Flores testified under res gestae; Captain Cabeltes of Aleson admitted he failed to verify clearance, did not sound horn, and refrained from evasive maneuvering.
- Trial Court Decision
- Regional Trial Court (RTC) found Aleson solely liable under Civil Code common-carrier presumption of negligence; awarded CGU ₱3,368,750 plus interest and fees; dismissed case against Candano and Aleson’s counterclaims.
- RTC admitted Lopez and Flores’s hearsay under res gestae and relied on Cabeltes’s admissions of lapses.
- Appellate Ruling
- Court of Appeals affirmed RTC: Aleson’s captain proceeded despite knowing Romeo was loading; failed to signal or maneuver; evidence supported negligence; no need to disturb factual findings.
- Aleson’s motion for reconsideration was denied; it filed petition for review under Rule 45.
Issues:
- Procedural and Evidentiary Questions
- Whether a Rule 45 petition may raise factual issues.
- Whether the testimonies of Lopez and Flores were inadmissible hearsay improperly admitted as res gestae.
- Substantive Liability Questions
- Whether CGU has a cause of action against Aleson and on what legal basis (contract of carriage vs. maritime tort).
- Whether the RTC and CA erred by applying Civil Code common-carrier provisions or by misapplying the standard of diligence.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)