IN VIEW OF ALL THE FOREGOING, the appealed decision
is AFFIRMED, with the MODIFICATION that: (1) the awarded compensation
for the death of MelquiadesSugata-on is reduced to P608,400.00; and, (2) the
award of moral and exemplary damages as well as attorneys fees is deleted. No
pronouncement as to costs.[2]
The factual and procedural antecedents of this instant petition are as follows:
Candano Shipping is a domestic corporation engaged in the business of coastwise
trading within the Philippines.[3] On 7 March 1994, Melquiades Sugata-on was
employed by Candano Shipping as Third Marine Engineer on board its cargo
vessel, M/V David, Jr., with the monthly salary of P7,800.00.[4]
On 25 March 1996, M/V David, Jr. left the port of Davao City with its cargo and
20 crew members. The voyage was initially uneventful until around seven
oclock in the evening of 27 March 1996 when the vessel encountered rough seas
and strong winds while traversing the waters of Lianga Bay, Surigao del Sur,
causing her to tilt at three degrees on its starboard side. Due to the violent waves
which continuously hammered the tilting vessel, the seawaters slowly swallowed
up the main deck causing the tilting to worsen up to 30 degrees. In an effort to
salvage the vessel, the ship captain changed its course from the north to the south
but the tilting continued to grow to a dangerously high level, rendering the vessel
beyond control. It was at this point when the ship captain ordered the crew
members to abandon the vessel. Despite the efforts exerted by the crew members
to save the vessel, M/V David, Jr. sank together with her cargo at around eleven
oclock in the evening at Bakulin Point, LiangaBay, Surigao del Sur. Among the 20
crew members, twelve survived, one died and seven were missing. One of those
who were missing was Melquiades Sugata-on (Melquiades), the husband of herein
respondent, Florentina Sugata-on, (Florentina) as shown in the List of Surviving
Crew of the Ill-Fated David, Jr., prepared byCandano Shipping.[5]