CASE/PROVISION/DOCTRINE PARTIES/FACTS ISSUE/HELD

1. Charter party was a contract of affreightment.

FACTS: Julius C. Ouano is the registered owner and operator
SMC
of the motor vessel known as M/V Don Julio Ouano who
The charter party was a contract of affreightment, contrary to petitioner
leased the said vessel to Florentino Rafols Jr. under a charter
Ouanos protestation that it was demise charter as shown in the stipulations
party. It was also expressly stipulated that the charterer should
in the Time Charter Party Agreement
operate the vessel for his own benefit and should not sublet or
sub-charter the same without the knowledge and written
It appearing that Ouano was the employer of the captain and crew of the
consent of the owner.
M/V Doa Roberta during the term of the charter, he therefore had
command and control over the vessel. His son, Rico Ouano, even testified
Rafols contracted with Market Developers, Inc. (MADE) under
that during the period that the vessel was under charter to SMC, the
an agreement denominated as a Fixture Note to transport
Captain thereof had control of the navigation of all voyages
13,000 bags of cement from Iligan City to General Santos City,
consigned to Supreme Merchant Construction Supply, Inc.
Under the foregoing definitions, as well as the clear terms of the Charter
(SMCSI) for a freightage of P46,150.00. Said amount was
Party Agreement between the parties, the charterer, SMC, should be free
agreed to be payable to Rafols by MADE in two installments,
from liability for any loss or damage sustained during the voyage, unless it
that is, P23,075.00 upon loading of the cement at Iligan City
be shown that the same was due to its fault or negligence.
and the balance of P23,075.00 upon completion of loading and
receipt of the cement cargo by the consignee. The fixture note
2. Ouano liable for negligence.
did not have the written consent of Ouano. Rafols had on
board the M/V Don Julio Ouano his sobre cargo (jefe de viaje)
Considering that the charter was a contract of affreightment, the shipowner
when it departed from Iligan City until the cargo of cement was
had the clear duty to ensure the safe carriage and arrival of goods
unloaded in General Santos City, the port of destination.
transported on board its vessels. More specifically, Ouano expressly
warranted in the Time Charter Party that his vessel was seaworthy. The
OUANO VS. CA On 13 October 1980, Ouano wrote a letter to MADE through
negligence of Captian Sabiano Inguito is the proximate cause of the sinking
its manager, Chua, to strongly request, if not demand to hold
of the vessel due to his failure to observe due care and to heed SMCs
momentarily any payment or partial payment whatsoever due
advices to take shelter.
M/V Don Julio Ouano until Mr. Florentino Rafols makes good
his commitment to petitioner. MADE, as shipper, paid Rafols
Ouano is vicariously liable for the negligent acts of his employee, Captain
the amount of P23,075.00 corresponding to the first installment
Inguito pursuant to Art. 2176 and 2180. Ouano miserably failed to
of the freightage for the aforestated cargo of cement. The
overcome the presumption of his negligence. He failed to present proof that
entire cargo was thereafter unloaded at General Santos City
he exercised the due diligence of a bonus paterfamilias in the selection and
Port and delivered to the consignee, SMCSI, without any
supervision of the captain of the M/V Doa Roberta.
attempt on the part of either the captain of M/V Don Julio
Ouano or the said sobre cargo of Rafols, or even of Ouano
3. SMC not liable for losses.
himself who was then in General Santos City Port, to hold and
keep in deposit either the whole or part of the cement cargo to
The contention that it was the issuance of the sailing order by SMC which
answer for freightage. Neither was there any demand made on
was the proximate cause of the sinking is untenable. The fact that there was
Rafols, et. al. for a bond to secure payment of the freightage,
an approaching typhoon is of no moment. It appears that on one previous
nor to assert in any manner the maritime lien for unpaid freight
occasion, SMC issued a sailing order to the captain of the M/V Doa
over the cargo by giving notice thereof to the consignee SMCI.
Roberta, but the vessel cancelled its voyage due to typhoon. Likewise, it
The cement was sold in due course of trade by SMCSI to its
appears from the records that SMC issued the sailing order before typhoon
customers in October and November 1980.
"Ruping" was first spotted at 4:00 a.m. of November 12, 1990.
Ouano filed a complaint in the RTC of Cebu against MADE, as
Consequently, Ouano should answer for the loss of lives and damages
shipper; SMCSI, as consignee; and Rafols, as charterer,
suffered by the heirs of the officers and crew members who perished on
seeking payment of P23,000.00 representing the freight
board the M/V Doa Roberta, except Captain Sabiniano Inguito.
charges for the cement cargo.

TRANSPO CASE SUMMARY | 1