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790 Phil. 16
THIRD DIVISION
[ G.R. No. 181375, July 13, 2016 ]
PHIL-NIPPON KYOEI, CORP., PETITIONER, VS. ROSALIA T.
GUDELOSAO, ON HER BEHALF AND IN BEHALF OF MINOR
CHILDREN CHRISTY MAE T. GUDELOSAO AND ROSE ELDEN T.
GUDELOSAO, CARMEN TANCONTIAN, ON HER BEHALF AND IN
BEHALF OF THE CHILDREN CAMELA B. TANCONTIAN, BEVERLY B.
TANCONTIAN, AND ACE B. TANCONTIAN, RESPONDENTS.
DECISION
JARDELEZA, J.:
This is a petition for review on certiorari[1] under Rule 45 of the Revised Rules of Court
filed by Phil-Nippon Kyoei, Corp. (Petitioner) from the Decision[2] of the Court of
Appeals (CA) dated October 4, 2007 (CA Decision) and its Resolution[3] dated January
11, 2008 in CA-G.R. SP No. 95456. The CA reinstated the Labor Arbiter's Decision[4]
dated August 5, 2004 (LA Decision) with the modification, among others, that
petitioner is liable to respondents under the insurance cover it procured from South Sea
Surety & Insurance Co., Inc. (SSSICI). The CA ruled that petitioner's liability would be
extinguished only upon payment by SSSICI of the insurance proceeds to respondents.
[5]
Facts
Petitioner, a domestic shipping corporation, purchased a "Ro-Ro" passenger/cargo
vessel "MV Mahlia" in Japan in February 2003.[6] For the vessel's one month conduction
voyage from Japan to the Philippines, petitioner, as local principal, and Top Ever Marine
Management Maritime Co., Ltd. (TMCL), as foreign principal, hired Edwin C. Gudelosao,
Virgilio A. Tancontian, and six other crewmembers. They were hired through the local
manning agency of TMCL, Top Ever Marine Management Philippine Corporation
(TEMMPC). TEMMPC, through their president and general manager, Capt. Oscar Orbeta
(Capt. Orbeta), and the eight crewmembers signed separate contracts of employment.
Petitioner secured a Marine Insurance Policy (Maritime Policy No. 00001) from SSSICI
over the vessel for P10,800,000.00 against loss, damage, and third party liability or
expense, arising from the occurrence of the perils of the sea for the voyage of the
vessel from Onomichi, Japan to Batangas, Philippines. This Marine Insurance Policy
included Personal Accident Policies for the eight crewmembers for P3,240,000.00 each
in case of accidental death or injury.[7]
On February 24, 2003, while still within Japanese waters, the vessel sank due to
extreme bad weather condition. Only Chief Engineer Nilo Macasling survived the
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