Title
Caltex , Inc. vs. Sulpicio Lines, Inc.
Case
G.R. No. 131166
Decision Date
Sep 30, 1999
MT Vector and MV Doña Paz collided in 1987, causing a maritime disaster. Caltex, as voyage charterer, was ruled not liable; liability fell on shipowner Vector Shipping and Sulpicio Lines.
A

Case Digest (G.R. No. 201193)

Facts:

  • Parties and Vessel Charter
    • Caltex (Philippines), Inc. (petitioner) chartered MT Vector, a tramping motor tanker owned and operated by Vector Shipping Corporation, under a voyage charter for carriage of petroleum products.
    • MT Vector departed Limay, Bataan on December 19, 1987 at about 8:00 p.m., laden with 8,800 barrels of Caltex gasoline, kerosene, diesel and crude oil.
  • Passenger Vessel MV Doña Paz
    • MV Doña Paz, a passenger and cargo vessel owned and operated by Sulpicio Lines, Inc., departed Tacloban on December 20, 1987 at about 6:30 a.m. bound for Manila.
    • The Coast Guard Clearance listed 59 crew (master and officers) and 1,493 passengers; actual passengers exceeded 4,000, many unmanifested.
  • Collision and Casualties
    • On the night of December 20, 1987 at about 10:30 p.m., MT Vector and MV Doña Paz collided at sea near Dumali Point (between Marinduque and Oriental Mindoro).
    • All but two of MT Vector’s crew and all but 24 of MV Doña Paz’s passengers and crew perished; the fire ignited by MT Vector’s cargo consumed both vessels.
  • Investigations and Lower Courts
    • Board of Marine Inquiry (BMI Case No. 653-87, March 22, 1988) found MT Vector, its operator Francisco Soriano and Vector Shipping Corporation at fault for the collision.
    • On February 13, 1989, Teresita and Sotera Caáezal filed a complaint against Sulpicio Lines for damages arising from breach of contract of carriage; Sulpicio filed a third-party complaint against Vector Shipping, Soriano and Caltex alleging negligent charter.
    • RTC Branch 8, Manila (September 15, 1992) dismissed Sulpicio’s third-party complaint against Caltex.
    • Court of Appeals (April 15, 1997) modified RTC judgment, holding Caltex and Vector Shipping equally liable to indemnify Sulpicio Lines for damages awarded to the Caáezal heirs.

Issues:

  • Liability of Charterer
    • Whether a charterer under a voyage charter can be held liable for damages resulting from a collision involving the chartered vessel.
  • Carrier Status and Charter Party
    • Whether a voyage charter converts a common carrier into a private carrier, affecting the allocation of responsibility for seaworthiness and third-party claims.
  • Negligence and Duty of Diligence
    • Whether Caltex, as charterer and shipper, owed a duty to inspect the vessel’s seaworthiness and documents and whether its alleged failure constitutes actionable negligence under the Civil Code.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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