UP Law BGC Eve 2024 Inter-Orient Maritime Enterprises v.

NLRC
Transportation and Public Utilities Admiralty and Maritime Commerce  Persons 1994 Feliciano
Participating in Maritime Commerce  Captains
and Master  Powers and Duties
SUMMARY DOCTRINE
Rizalino Tayong is a licensed Master Mariner who was hired by It is a basic principle of admiralty law that in navigating a
the petitioners as Master of the vessel Oceanic Mindoro for 1 merchantman, the master must be left free to exercise his own
year. He was instructed for a voyage from Hong Kong to South best judgement. A ship's captain must be accorded a
Africa. En route, the vessel stopped mid-ocean for 6 hours due reasonable measure of discretionary authority to decide what
to the leak of turbo-charger. Instead of following the advice of the safety of the ship and of its crew and cargo specifically
the Technical Director, Tayong waited for the supply of oxygen requires on a stipulated ocean voyage.
and acetylene needed, causing the delay of the voyage to
South Africa. Upon arrival, he was repatriated to PH because of
loss of confidence. SC ruled that what he did does not warrant
dismissal, and there was reasonable ground for the delay.

FACTS

 Respondent Rizalino Tayong is a licensed Master Mariner with experience in commanding ocean-going vessels. He was
employed by petitioners Trenda World Shipping and Sea Horse Ship Management through Inter-Orient Maritime Enterprises as
Master of the vessel Oceanic Mindoro for 1 year.
 July 15, 1989: Tayong assumed command of the vessel at the port of Hong Kong. The instruction was to replenish bunker and
diesel fuel and proceed to South Africa. Precautionary measures were taken to secure the safety of the vessel since the
vessel’s turbo-charger was leaking. Tayong followed up the requisition by the former captain for supplies of oxygen and
acetylene, which is necessary for the welding-repair of the turbo-charger and the economizer.
 July 25: Vessel sailed from Hong Kong to Singapore. En route, the vessel stopped mid-ocean for 6 hours due to the leaking
economizer. Tayong called the shipowner Sea Horse and informed them that the departure for South Africa will be affected
because of the delay of the supply of oxygen and acetylene.
 Tayong sought the help of Mr. Clark (Technical Director who is in Tokyo). Mr. Clark advised that there should be no problem if the
water is shut off to the turbo charger and using the auxiliary boiler. Mr. Clark and Tayong agreed that the vessel could sail on
0100 on August 1 for South Africa.
 However, Tayong communicated to Sea Horse his reservations to proceed without the supplies. He was then advised by Sea
Horse to wait for the supply and depart on 0800 on August 1.
 Upon arriving at South Africa, Tayong was instructed to turn-over his post to the new captain. He was then repatriated to the PH.
He was not informed of the charges against him.
 POEA
o Tayong filed complaint for illegal dismissal claiming unpaid salary for the unexpired portion of the contract.
o Petitioners alleged he refused to proceed to South Africa to their prejudice. Because of the delay, the vessel was placed
off-hire by charterers. He was dismissed for loss of trust and confidence.
o POEA dismissed complaint. Tayong’s concern for the oxygen and acetylene was not legitimate since they were not
necessary for the running of the vessel.
 NLRC
o NLRC reversed POEA. Tayong was not given an opportunity to be heard. He only acted in accordance with his duties to
maintain seaworthiness of the vessel.
 SC
o Petitioners insist that he caused them unnecessary damage and he lost their trust and confidence.

RATIO

W/N it was proper for the petitioners Sea Horse to dismiss Tayong for the delay caused in proceeding to South Africa?

NO. Tayong was illegally dismissed.

Captain of a vessel is a confidential and managerial employee.

 Confidential and managerial employees cannot be arbitrarily dismissed at any time, and without cause as reasonably
established in an appropriate investigation. Such employees, too, are entitled to security of tenure, fair standards of
employment and the protection of labor laws.
 A master or captain, for purposes of maritime commerce, is one who has command of a vessel.
 A captain commonly performs three (3) distinct roles:
o (1) he is a general agent of the shipowner;
o (2) he is also commander and technical director of the vessel; and
o (3) he is a representative of the country under whose flag he navigates.
 Of these roles, by far the most important is the role performed by the captain as commander of the vessel; for such role has to
do with the operation and preservation of the vessel during its voyage and the protection of the passengers (if any) and crew
and cargo. In his role as general agent of the shipowner, the captain has authority to sign bills of lading, carry goods aboard
and deal with the freight earned, agree upon rates and decide whether to take cargo. The ship captain, as agent of the
shipowner, has legal authority to enter into contracts with respect to the vessel and the trading of the vessel, subject to
applicable limitations established by statute, contract or instructions and regulations of the shipowner. To the captain is
committed the governance, care and management of the vessel.

Tayong was denied opportunity to defend himself.

 He was dismissed from his command and summarily ordered his repatriation without informing him of the charges.
 Petitioners rely on self-serving affidavits that Tayong performed acts inimical to their interests.

It is a basic principle of admiralty law that in navigating a merchantman, the master must be left free to exercise his own best
 judgement.
 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, and properly so, for
such safety. He is right there on the vessel, in command of it and (it must be presumed) knowledgeable as to the specific
requirements of seaworthiness and the particular risks and perils of the voyage he is to embark upon. The applicable principle
is that 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, whether those be of the shipowners, charterers, cargo owners or of underwriters.

A captain must have reasonable grounds to believe that the safety of the vessel and the crew under his command or the
possibility of substantial delay at sea requires him to wait for the delivery of the supplies needed for the repair of the turbo-
charger and the economizer before embarking on the long voyage from Singapore to South Africa.
 SC is unable to hold that Tayong's decision (arrived at after consultation with the vessel's Chief Engineer) to wait seven (7)
hours in Singapore for the delivery on board the Oceanic Mindoro of the requisitioned supplies needed for the welding-repair,
on board the ship, of the turbo-charger and the economizer equipment of the vessel, constituted merely arbitrary,
capricious or grossly insubordinate behavior on his part. In the view of the NLRC, that decision of Captain Tayong did not
constitute a legal basis for the summary dismissal of Captain Tayong and for termination of his contract with petitioners prior to
the expiration of the term thereof.
 Based on Tayong’s telex to Sea Horse, he explained that the Chief Engineer disagreed with the advice of Mr. Clark, and
requested to wait for the supplies instead of proceeding to South Africa.

FALLO

Petition is DENIED.