Case Digest (G.R. No. 188118)
Facts:
Federal Phoenix Assurance Co., Ltd. v. Fortune Sea Carrier, Inc., G.R. No. 188118, November 23, 2015, Supreme Court Third Division, Reyes, J., writing for the Court. Petitioner Federal Phoenix Assurance Co., Ltd. (insurer and subrogee) sued respondent Fortune Sea Carrier, Inc. (shipowner and common carrier) to recover for loss of cargo after a fire aboard M/V Ricky Rey.In March 1994 Fortune Sea entered into a Time Charter Party with Northern Mindanao Transport Co., Inc. under which the vessel was chartered for 90 days and later extended for another 90 days. In June 1994 the M/V Ricky Rey carried 2,069 bales of abaca shipped by Manila Hemp Trading Corporation for consignee Newtech Pulp Inc. in Iligan City; the shipment was covered by Bill of Lading No. 1 and insured by Federal Phoenix. During discharge at Iligan on 18 June 1994 a fire occurred in the cargo hold; 60 bales of abaca were damaged.
Newtech presented an insurance claim to Federal Phoenix, which after evaluation paid Newtech P162,419.25 and was subrogated to Newtech’s rights. Federal Phoenix then demanded recovery from Fortune Sea; suit was filed in the Regional Trial Court (RTC), Makati City (Branch 143), for P260,000.00 as actual damages, with attorney’s fees and costs.
At trial Fortune Sea contended that by virtue of the Time Charter Party it had relinquished control of the vessel and was acting as a private carrier (i.e., owner pro hac vice or bareboat/demise charter situation), and thus should not be held to the strict obligations of a common carrier. On May 4, 2006 the RTC (Judge Zenaida T. Galapale-Laguilles) rendered judgment for Federal Phoenix, awarding the claimed sum; an October 26, 2006 order denied Fortune Sea’s motion for reconsideration.
Fortune Sea appealed to the Court of Appeals (CA). In a decision dated February 10, 2009 (CA-G.R. CV No. 88607, penned by J. Dimaampao with J. de Guia‑Salvador and J. Marella concurring), the CA reversed and set aside the RTC decision and dismissed the complaint for lack of me...(Pro-only)
Issues:
- Did the Court of Appeals err in ruling that the Time Charter Party between Fortune Sea and Northern Mindanao Transport Co., Inc. was in substance a bareboat (demise) charter that converted M/V Ricky Rey into a ...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)