SULPICIO  LOSES  ANOTHER  COURT  CASE
 
CEBU, JULY 6, 2008 (STAR) Sulpicio Lines Inc. (SLI) has lost another court case involving the sinking of one of its ships 10 years ago.

A court in Cebu ordered the shipping company to pay almost P2 million to four survivors of the M/V Princess of the Orient tragedy in 1998.

In his decision, Judge Ramon Codilla Jr. of Cebu City Regional Trial Court branch 19 found SLI liable for damages and breach of contract.

The case was filed against SLI by Army Maj. Victorio Karaan, retired Army 2Lt. Napoleon Labrague, his wife T/Sgt Herminia Labrague, and Ely Liva.

SLI was ordered to pay P550,000 to Karaan representing actual, moral, exemplary and nominal damages.

The Labrague couple was awarded P1 million and Liva P200,000.

Last Feb 1, Judge Estella Alma Singco of Cebu City RTC branch 12 ordered SLI to pay P6.4 million to the heirs of Ernesto Unabia, who died when the Princess of the Orient sank near Fortune Island in Cavite.

However, SLI asked the court to reconsider its decision on grounds that the decision was based on disputed facts.

The court also brushed aside the findings of the Coast Guard that cleared the shipping firm of any liability, SLI added.

In the 11-page decision dated May 15, the court said SLI violated the Civil Code provisions requiring common carrier to carry their passengers safely.

“Under article 1755 of the Civil Code, a common carrier is bound to carry the passengers safely as far as human care and foresight can provide, using utmost diligence of very cautious persons, with due regard for all the circumstances,” read the decision.

“In case of death or injury to passengers, common carriers are presumed to have been at fault or to have acted negligently unless they prove that they observed extraordinary diligence as prescribed in Articles 1733 and 1755.”

The fact that the vessel sank is evidence that there was gross negligence on the part of Sulpicio Lines, the court said.

However, SLI said the sinking of the Princess of the Orient was due to a fortuitous event beyond human control as the ship was seaworthy and properly manned by qualified and competent crew.

All the necessary navigational equipment was working, and the ship was cleared by the Coast Guard before leaving North Harbor in Manila for Cebu, SLI added.

SLI said when the vessel left Manila, the Philippine Atmospheric, Geophysical and Astronomical Services Administration had already placed the city under storm signal warning no. 1.

However, the Princess of the Orient, being a huge vessel with a gross tonnage of 13,734, was allowed to leave port based on Coast Guard guidelines that only vessels of less than 250 gross tons would not be allowed to sail after signal no. 1 had been hoisted in its port of origin, SLI added.

However, the court did not give merit to SLI’s contention that the Princess of the Orient sank due to force majeure.

It ruled gross negligence on the part of the ship’s crew, who had failed to secure the cargo and other objects on board.

“Article 1756 of the Civil Code holds the company equally liable for the negligence of its employees unless they can prove that they exercised extraordinary diligence,” read the decision.

Limiting Sulpicio to cargo

Lawmakers are eyeing a possible change in the franchise of Sulpicio Lines to limit its operation to the transportation of cargo.

However, Quezon City Rep. Matias Defensor, House justice committee chairman, said it would not be easy for Congress to change the franchise of Sulpicio Lines.

“That is not easy to do because Sulpicio is number one in both passengers and cargo,” he said.

“It would be much more difficult to revoke its franchise. We cannot create a vacuum that big. There would be dislocation of passengers and cargo, which would not be good for the economy.”

Speaking at a news forum yesterday, Defensor said lawmakers would have to make sure that other investors could fill the vacuum if it takes action on Sulpicio’s franchise.

“And that cannot be done overnight, assuming there are other shipping lines willing to invest. It will take years,” he said.

Sulpicio reportedly controls about 40 percent of the passenger and cargo market in domestic shipping.

The government has allowed its cargo vessels to ply their routes, while passenger ships remain grounded.

Sulpicio pays 8 families

Sulpicio Lines has already released the claims of eight families of victims of the ill-fated M/V Princess of the Stars.

In a statement, SLI management said as of Thursday, they have released the claims of three families in Cebu and five in Manila.

The next of kin or the legal heirs of every dead passenger should first fill up a claim form which can be obtained at their offices in Cebu or Manila, the statement added.

The SLI said the form should be accompanied by the following documents: birth certificate and marriage contract of victims and claimants; valid residence certificate and government ID of the claimant; voter’s ID of the victim and claimant; affidavit of relationship of the claimant to the victim, and death certificate if available.

There is no need to hire the services of a lawyer because documents presented to claimants would be as “simple as possible,” the statement added.

SLI said it would take the claimants a week or less to receive their compensation, as long as the required documents are complete.

“The documentation is intended to establish affiliation because our primary concern is double payment or fake claims,” said SLI lawyer Arthur Lim.

“We just want to make sure we are paying the right claimant.”

The compensation is meant to assist the families of the victims and is “not an admission of any legal liability,” Lim said. – Fred Languido/Freeman News Service, Jess Diaz, Sandy Araneta