Assignment 2 Case Digest1

SUBJECT: MARITIME LAW
PROFESSOR: CDR MAYETTE M. MENDOZA PCG LLM
SUBMITTED BY: CAPT JOMER D. PASCUA, MM
ACTIVITY – CASE DIGEST 1/3
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Republic of the Philippines

SUPREME COURT
Manila
FIRST DIVISION
CALTEX (PHIL), INC., petitioner,

vs.
SULPICIO LINES, INC., G. S.SO, E.S. GO, E.S. GO, C.S. GO, V. S. GO, D. S. GO,
R.S. GO, E.S. GO, A.S. GO, E.S. GO, E.S. GO, F.SORIANO, VECTOR SHIP. CORP.,
T.G. CAÑEZAL, AND S. E. CAÑEZAL, respondents.
G.R. No. 131166 (September 30, 1999)
PARDO, J.:
FACTS:
 2000H,Dec. 19, 1987, MT Vector sailed from Limay, Bataan to Masbate, carrying
8,800 barrels of gasoline and other oil products under voyage charter with the
petitioner Caltex. MT Vector is owned and operated by Vector Ship. Corp., engaged
in the business of transporting petroleum products.
 0630H, December 20, 1987, the passenger ship MV Doña Paz sailed from Tacloban
to Manila with 59 crew members and passengers of 1,493 as per clearance from
Coast Guard. The MV Doña Paz is a passenger and cargo vessel owned and
operated by Sulpicio Lines, Inc.
 2230H, December 20, 1987, MT Vector collided with MV Doña Paz in the open sea
within the vicinity of Dumali Point between Marinduque and Oriental Mindoro. With
only 24 survivors, nearly all of the passengers and crew members on both ships
were killed.
 MV Doña Paz carried an estimated 4,000 passengers most were not included in the
manifest.
 March 22, 1988, the board of marine inquiry in BMI Case No. 659-87 found that the
MT Vector and its owner and actual operator of Vector Shipping Corporation,
Francisco Soriano, were at fault and responsible for its collision with MV Doña Paz.
 February 13, 1989, "Teresita Cañezal and Sotera E. Cañezal, the wife and mother of
Sebastian Cañezal, respectively, filed a complaint against Sulpicio Lines, Inc. for the
death of Sebastian E. Cañezal (a 47-year-old public school teacher) and his 11-
year-old daughter Corazon G. Cañezal, Inc., for “Damages Arising from Breach of
Contract of Carriage”.
 Sulpicio Lines, In exchange,filed a lawsuit with a third party against Francisco

Soriano, Vector Shipping Company and Caltex.
 Sulpicio alledges that with gross and evident bad faith, Caltex chartered MT Vector,
even realizing that MT Vector was poorly manned, ill-equipped, unseaworthy and a
threat to safe navigation. RTC: dismissed the complaint from the third party and
favored the Cañezal's against Sulpicio Lines
 CA: included Caltex as liable party.
ISSUE:
Wether or not Caltex, under voyage charter , liable for damages resulting from a
collision between the chartered vessel and a passenger ship.
RULING:
No, SC grants the petition and sets aside CA decision
I. The charterer has no liability for damages under Philippine Maritime laws.
 respective rights and duties of a shipper and the carrier depends not on
whether the carrier is public or private,
 but on the contract of carriage:
 in the form of a bill of lading or equivalent shipping documents; or
 charter party or similar contract on the other
 Caltex (petitioner) and Vector entered into a contract of
affreightment(voyage charter)
 charter party
– a contract by which an entire ship, or some principal
part thereof, is let by the owner to
– another person for a specified time or use
II. MT Victor is a common carrier
 Charter parties fall into three main categories:

o 1. Bareboat/Demise
- charterer mans the vessel with his own people
and becomes, in effect, the owner for the
voyage or service stipulated, subject to liability
for damages caused by negligence
- common carrier becomes private carrier
contract of affreightment
one by which the owner of a ship or other vessel lets the whole or part of her to a
merchant or other person for the conveyance of goods, on a particular voyage, in
consideration of the payment of freight
may be either:
o (2) time charter - wherein vessel is leased to the charterer for a fixed
period of time
o (3) voyage charter - wherein vessel is leased only for a single voyage
 charter-party provides for the hire of the vessel only, either for a
determinate period of time or for a single or consecutive
voyage, the ship owner to supply the ship’s store, pay for the
wages of the master of the crew, and defray the expenses for
the maintenance of the ship
 the charterer is free from liability to third persons in respect of
the ship
 doesn’t convert the common carrier into a private carrier
 Carriage of Goods by Sea Act :
Sec. 3. (1) The carrier shall be bound before and at the beginning of the
voyage to exercise due diligence to -
(a) Make the ship seaworthy;
(b) Properly man, equip, and supply the ship;
XXX XXX XXX

III. Caltex (petioner) is not liable for damages under Civil Code
Thus, the carriers are deemed to warrant impliedly the seaworthiness of the vessel. For
a vessel to be seaworthy, it must be adequately equipped for the voyage and manned
with a sufficient number of competent officers and crew. The failure of a common
carrier to maintain in seaworthy condition the vessel involved in its contract of carriage
is a clear breach of its duty prescribed in Article 1755 of the Civil Code:
Therefore:
 a passenger or a shipper of goods is under no obligation to conduct an
inspection of the ship and its crew, the carrier being obliged by law to
impliedly warrant its seaworthiness
 nature of the obligation of Caltex demands ordinary diligence like any other
shipper in shipping his cargoes
 Caltex and Vector Shipping Corporation had been doing business since 1985,
or for about two years before the tragic incident occurred in 1987. Past
services rendered show no reason for Caltex to observe a higher degree of
diligence.
 As a mere voyage charterer ,Caltex had the right to presume that the ship
was seaworthy as even the Philippine Coast Guard itself was convinced of its
seaworthiness

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SUBJECT: MARITIME LAW

PROFESSOR: CDR MAYETTE M. MENDOZA PCG LLM

SUBMITTED BY: CAPT JOMER D. PASCUA, MM

ACTIVITY – CASE DIGEST 1/3

Republic of the Philippines

CALTEX (PHIL), INC., petitioner,

G.R. No. 131166 (September 30, 1999)

 Sulpicio Lines, In exchange,filed a lawsuit with a third party against Francisco

 CA: included Caltex as liable party.

No, SC grants the petition and sets aside CA decision

– another person for a specified time or use

II. MT Victor is a common carrier

 Charter parties fall into three main categories:

- common carrier becomes private carrier

(a) Make the ship seaworthy;

(b) Properly man, equip, and supply the ship;

XXX XXX XXX

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