Inter-Orient Maritime Enterprises, Inc. vs.

NLRC

FACTS:

Captain Tayong was hired by Trenda World Shipping and Sea Horse Ship Management
through Inter-Orient Maritime Enterprises for a period of 1 year. He took command of
Inter-Orients vessel in Hong Kong. He was instructed to replenish bunker and diesel fuel,
to sail forthwith to Richard Bay, South Africa, and there to load 120, 000 metric tons of
coal. Since a storm would hit Hong Kong, precautionary measures were taken to secure
the vessel’s safety considering that the turbo-charger was leaking and the vessel was 14
years old. Captain Tayong followed-up the requisition by the former Captain for supplies
of oxygen and acetylene, necessary for the welding-repair of the turbo-charger and
economizer. The vessel sailed to Singapore. On the way to Singapore, the vessel stopped
in the middle of the ocean for 6 hours and 45 minutes due to a leaking economizer. He
was instructed to shut down the economizer and use the auxiliary boiler instead. When
the vessel arrived in Singapore, the Chief Engineer reminded Captain Tayong that the
oxygen and acetylene supplies had not been delivered. Upon inquiry, the Captain was
informed that the supplies could only be delivered on Aug. 1 as the stores had closed.
Captain Tayong called the shipowner, Seahorse Ship Management and informed them
that the departure of the vessel for South Africa may be affected because of the delay in
the delivery of the supplies. He was advised to contact Mr. Clark, the Technical Director.
According to Mr. Clark, after being informed that the ship cannot travel without the
supplies, Captain Tayong agreed with him when he said by shutting off the water to the
turbo chargers and using the auxiliary boilers, there should be no further problem.
According to Captain Tayong, he was informed by Sea Horse to wait for the supplies.
Captain Tayong immediately sailed for South Africa upon the delivery of the supplies.
Upon reaching South Africa, Captain Tayong was instructed to turn-over his post to the
new captain. He was thereafter repatriated to the Philippines. He was not informed of
the charges against him. He then instated a complaint for illegal dismissal.

ISSUE
WoN Captain Tayong was illegally dismissed? YES.

HELD

Confidential and managerial employees cannot be arbitrarily dismissed at any time, and
without cause as reasonably established in an appropriate investigation. They are also
entitled to security of tenure, fair standards of employment and the protection of labor
laws. The captain of a vessel is a confidential and managerial employee. A captain
commonly performs 3 distinct roles:
1) he is a general agent of the shipowner;
2) he is also commander and technical director of the vessel; and
3) he is a representative of the country under whose flag he navigates.

The most important is the role performed by the captain as the commander of the
vessel. Such a role analogous to that of “Chief Executive Officer” of a present-day
corporate enterprise. A ship’s captain must be accorded a reasonable measure of
discretionary authority to decide what the safety of the ship and of its crew and cargo
specifically requires on a stipulated ocean voyage. The captain is held responsible for
such safety. The captain has control of all departments of service in the vessel, and
reasonable discretion as to its navigation. It is the right and duty of the captain, in the
exercise of sound discretion and in good faith, to do all things with respect to the vessel
and its equipment and conduct of the voyage which are reasonably necessary for the
protection and preservation of the interests under his charge. It is a basic principle of
admiralty law that in navigating a merchantman, the master must be left free to
exercise his own best judgment. The requirements of safe navigation compel us to reject
any suggestion that the judgment and discretion of the captain of a vessel may be
confined within a straight jacket. The master is entitled to delay for such a period as may
be reasonable under the circumstances. Captain Tayong had reasonable grounds to
believe that the safety of the vessel and crew required him to wait for the delivery of
the supplies needed.
The vessel had stopped mid-ocean for 6 hours and 45 minutes on its way to Singapore
because of its leaking economizer. Captain Tayong did not maliciously and arbitrarily
delay the voyage to South Africa. The decision of Captain Tayong did not constitute a
legal basis for his summary dismissal.