G.R. No. 217311 , July 15, 2020
Aleson Shipping Lines, Petitioner, vs. CGU International Insurance PLC and Candado Shipping Lines, Inc., Respondents.

FACTS

In 2002, Candano Shipping Lines, Inc. entered into a time charter agreement with Apo Cement Corporation for the vessel M/V Romeo to deliver cement from Cebu to Albay. The cargo was insured by CGU International Insurance. On July 14, 2002, while M/V Romeo was exiting the pier in the Apo channel, it collided with M/V Aleson Carrier 5, owned by Aleson Shipping Lines. The collision caused a hole in M/V Romeo, leading to its sinking and the loss of the cement cargo. Apo Cement’s insurance claim was paid by CGU Insurance, which then filed a case for damages against both Candano Shipping and Aleson Shipping. Aleson Shipping denied liability, blaming Candano Shipping’s vessel, while Candano Shipping argued that Aleson Shipping was at fault and that the complaint should be dismissed due to a failure to observe an arbitration clause in the charter. The Regional Trial Court found Aleson Shipping solely liable based on the presumption of negligence against common carriers and the admitted lapses of its vessel’s captain, Captain Cabeltes, who failed to wait for M/V Romeo to clear the channel, did not verify if it was safe to proceed, and did not signal or maneuver to avoid the collision. The Court of Appeals affirmed the decision. Aleson Shipping elevated the case, arguing that the law on common carriers should not apply to it as it had no contract of carriage with the insured, and that liability should be governed by maritime tort under the Code of Commerce.

ISSUE

Whether Aleson Shipping Lines, as the owner of M/V Aleson Carrier 5, is liable for the damages resulting from the collision with M/V Romeo.

RULING

Yes, Aleson Shipping Lines is liable. The Supreme Court affirmed the lower courts’ decisions. It held that while the immediate contractual relationship for the carriage of goods was between Candano Shipping (as carrier) and Apo Cement (as shipper), the action filed by the insurer-subrogee CGU Insurance against Aleson Shipping was based on quasi-delict or tort, not on contract. Consequently, the presumption of negligence under the law governing common carriers (Article 1733 of the Civil Code) does not apply against Aleson Shipping. Instead, the general rules on quasi-delict apply. Nevertheless, based on the evidence, particularly the testimony of Aleson’s own witness, Captain Cabeltes, the Court found that Aleson Shipping was negligent. Captain Cabeltes admitted that he knew M/V Romeo was loading at the pier, failed to verify if the channel was clear before proceeding, did not blow the ship’s horn to signal, and did not maneuver to avoid the collision despite having space to do so. This negligence was the proximate cause of the collision. The Court also found the testimonies of CGU’s surveyor and Candano’s operations manager credible and admissible as part of the res gestae. Therefore, Aleson Shipping’s negligence was established by preponderance of evidence, making it solidarily liable with Candano Shipping for the damages. However, since CGU Insurance only sought recovery from Aleson Shipping, the Court upheld the lower court’s decision holding Aleson Shipping solely liable for the amount of P3,368,750.00 with interest.