Title
Supreme Court
Negros Navigation Co., Inc. vs. Court of Appeals
Case
G.R. No. 110398
Decision Date
Nov 7, 1997
Negros Navigation held liable for damages after M/V Don Juan sank due to gross negligence, despite total loss of vessel; passenger status confirmed, damages affirmed.

Case Summary (G.R. No. 228822)

Factual Background

On April 22, 1980, Ramon Miranda purchased four special cabin tickets for members of his family on the M/V Don Juan, which was set to travel to Bacolod City. The ship left Manila on time but later collided with the M/T Tacloban City that evening, leading to its sinking. While several passengers were rescued, the bodies of Miranda's four relatives were never recovered. Following this maritime disaster, Miranda and the De la Victoria spouses filed a complaint against Negros Navigation and PNOC for damages.

Admission and Denial of Claims

The petitioner acknowledged the sale of tickets and the departure of the M/V Don Juan but denied that any of the family members actually boarded the vessel. The petitioner claimed that circumstantial evidence favored their denial due to the lack of recovered bodies. They argued the ship's seaworthiness and blamed the collision entirely on the Tacloban City's crew.

Compromise Agreement and Court Judgement

A compromise agreement was reached between Negros Navigation and PNOC that absolved PNOC of further liability. The trial court subsequently adjudged that the respondents were entitled to damages, leading to an appeal by the petitioner. The appellate court modified the trial court's ruling on the amount of damages but upheld the findings of liability and negligence against Negros Navigation.

Issues Raised on Appeal

The primary issues for consideration were whether the deceased were passengers on the Don Juan, if the ruling in the Mecenas case regarding negligence was binding, whether liability was extinguished by the total loss of the vessel, and if the damages awarded were excessive.

Determination of Passenger Status

The trial court found evidence sufficient to confirm that the victims were passengers. Despite the petitioner's insistence that ticket ownership was insufficient proof of boarding, the testimony of Ramon Miranda—who stated he was present as they boarded—and corroboration from a survivor provided credible evidence against the petitioner's claims regarding the victims' presence on the vessel at the time of the tragedy.

Finding of Negligence

The Court affirmed the trial court's finding of negligence, referencing the Mecenas case, where it was established that both the Don Juan's crew and the crew of the oil tanker were at fault. The Don Juan's master had been recklessly engaged in gambling during the critical moments leading up to the collision, demonstrating a gross lack of diligence required of a common carrier.

Liability despite Total Loss

It was determined that the total loss of the M/V Don Juan did not absolve the petitioner from liability for damages. The principle of accountability in maritime law dictated that a shipowner remains liable for the consequences of negligence even if the ship itself is lost.

Calculations of Damages

The Court evaluated the computation of loss of earning capacities for the victims amongst other damages. For Mrs. Ardita Miranda, the loss was calculated based on her projected life expectancy and income; the deductions for living expenses were

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