Case Digest (G.R. No. 141716)
Facts:
San Miguel Corporation v. Heirs of Sabiniano Inguito, and Julius Ouano, G.R. Nos. 141716 and 142025, July 04, 2002, the Supreme Court First Division, Ynares‑Santiago, J., writing for the Court.The dispute arose from a Time Charter Party Agreement between petitioner San Miguel Corporation (SMC) and shipowner Julius C. Ouano, doing business as J. Ouano Marine Services, under which SMC chartered the M/V Dona Roberta from June 1, 1989 to May 31, 1991 to transport beverage products. The charter expressly (a) warranted Ouano's ownership and the vessel's seaworthiness, (b) provided that the vessel’s crew would remain the employees of the owner and under his control, and (c) contained indemnity provisions by which the owner agreed to hold the charterer free from claims arising out of crew acts and vessel condition.
On November 11–12, 1990 SMC issued sailing orders for the vessel to proceed from Mandaue to Opol. Typhoon Ruping was sighted in the region early on November 12. During the voyage SMC’s radio operator, Rogelio P. Moreno, repeatedly warned Capt. Sabiniano Inguito to take shelter (calls at 7:00 a.m., 2:00 p.m., and 4:00 p.m. on November 12), but the captain elected to proceed. Communications later failed; at 1:15 a.m. on November 13, Capt. Inguito sent a distress call requesting rescue assistance, and at 2:30 a.m. the M/V Dona Roberta sank. Of 25 aboard, five survived; the captain and most crew perished.
On November 24, 1990 Ouano filed a Marine Protest. The heirs of the deceased crew and the survivors filed a tort action (Civil Case No. 2472‑L, RTC Lapu‑Lapu City, Branch 27) against SMC and Ouano. Ouano answered with a cross‑claim, alleging SMC’s issuance of the sailing order and its control as charterer caused the loss and seeking indemnity. SMC countered that Ouano retained control and responsibility and interposed counterclaims for lost cargo.
After trial, the trial court found SMC primarily at fault and ordered SMC to pay substantial indemnities to the heirs and survivors, and ordered SMC to indemnify Ouano on his cross‑claim for the value of the vessel and unrealized earnings. Both SMC and Ouano appealed to the Court of Appeals (CA‑G.R. CV No. 48296). The Court of Appeals modified the trial court judgment by declaring SMC and Ouano jointly and severally liable to the plaintiffs (but excepting the heirs of Capt. Inguito) and reducing certain damages; the CA denied subsequent motions for reconsideration.
SMC filed a petition in this Court (G.R. No. 141716) arguing it had no duty or control over navigation, that it had advised the owner and exercised prudence, and relying on the charter’s indemnity clause. Ouano filed a separate petition (G.R. No. 142025)...(Subscriber-Only)
Issues:
- Was the Time Charter Party between SMC and Julius C. Ouano a demise (bareboat) charter or a contract of affreightment/time charter (i.e., who had possession and control of the vessel)?
- Is SMC liable in tort for the sinking of M/V Dona Roberta and the deaths of its crew by virtue of issuing sailing orders and its communications with the ship?
- Is Julius C. Ouano liable for the deaths and losses by reason of vicarious liability for his captain’s negl...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)