Appellate court exonerates Caltex in Doņa Paz disaster UNITED STATES oil retailer Caltex (Philippines) Inc. was absolved of liability Thursday by the Philippines' appellate court for the world's worst peacetime marine disaster in 1987, court officials said.
The court upheld a 1997 lower court ruling that dismissed claims against the company by the operators of the Doņa Paz ferry.
The ferry had been rammed in the dark by the Vector, a small oil tanker chartered by Caltex. It sank with the loss of about 3,000 lives off the central island of Mindoro a few days before Christmas in 1987.
Court of Appeals associate justice Rodrigo Cosico's ruling excluded Caltex from liability for compensating the victims' heirs.
The suit was filed by Sulpicio Lines and its insurer, Prudential Guarantee Insurance, against the Vector's operators and its charterer.
Cosico wrote in his ruling that it was settled in Philippine jurisprudence that the charterer of a ship only has "the right to indicate the ports or places at which the vessel shall
call or enter but ... has no jurisdiction or control over the acts of the captain."
The charterer "is not liable for damages by the negligence of the latter in handling the ship," the judge added.
Caltex had chartered Vector Shipping to deliver gasoline, diesel, kerosene and other flammable oil products to various depots south of Manila.
Caltex had "no obligation to, nor is it in a position, to determine the seaworthiness of the vessel it employs," the judge said.
Sulpicio Lines had blamed the Vector and Caltex for the fiery sinking of both vessels, alleging that the tanker lacked navigational sidelights and was grossly unseaworthy and that its master lacked a chief mate's license.
Sulpicio Lines has received 25 million pesos in insurance payments from Prudential representing part of the lost value of the sunken carrier.
It has since filed for damages against Vector Shipping and Caltex to indemnify itself for cargo and passenger claims it had already paid out.
http://news.inq7.net/breaking/index.php?in...&story_id=63462If he's a master, he should have a Master's license.
This wrong practices is now being covered by the ISM and handled by MARINA. Checking ships of their seaworthiness. Nowadays, charterers such as Caltex conducts their own vettings of ships they are chartering/hiring. Hopefully MARINA and the PCG are doing their jobs to prevent such world's worst disaster from happening again in our country.