155 Standard Oil Co Of Ny V. Castelo.docx

Standard Oil Co. of New York v. Castelo Facts  Manuel Lopez Castelo, as owner, let the small interisland steamer Batangueno for one year to Jose Lim Chumbuque (hahaha) for use in the conveying of cargo between certain PH ports. o It was stipulated that the officers and crew should be supplied by owner, and that charterer should have no other control over the captain, pilot, and engineers to specify the voyages that they should make and require owner to discipline or relieve them asap in case of failure to perform duties.  While the boat was being used by the charterer in the interisland trade, Standard Oil delivered to the agent of the boat in Manila petroleum to be conveyed to Sorsogon. For this consignment a bill of lading of the usual form was delivered, with the stipula tion that freight should be paid at the destination. Said bill of lading contained no provision with respect to the storage of the petroleum, but it was in fact placed upon the deck of the ship and not in the hold.  A violent typhoon occurred, so the captain was compelled for the safety of all to jettison the entire consignment of petroleum consisting of two hundred cases. When the storm abated the ship made port, and thirteen cases of the petroleum were recovered, but the remainder was wholly lost. o Standard Oil filed against Castelo -> CFI in favor of Standard Oil. Issue & Ruling WON the loss of the petroleum was a general average loss or a particular loss to be borne solely by the owner of the cargo.  The cargo was carried upon deck – and as a general rule, ordinarily the loss of cargo carried on deck shall not be considered an average loss. (Rule I of YorkAntwerp Rules).  The reason for this rule is found in the fact that deck cargo is in an extra hazardous position and, if on a sailing vessel, its presence is likely to obstruct the free action of the crew in managing the ship. Moreover, especially in the case of small vessels, it renders the boat top-heavy and thus may have to be cast overboard sooner than would be necessary if it were in the hold; and naturally it is always the first cargo to go over in case of emergency.  Indeed, in subsection 1 of article 815 of the Code of Commerce, it is expressly declared that deck cargo shall be cast overboard before cargo stowed in the hold.  Hence, plaintiff is entitled to recover in some way and from somebody an amount bearing such proportion to its total loss as the value of both the ship and saved cargo bears to the value of the ship and entire cargo before the jettison was effected. As to liability: shipper may go upon the owner, who in turn may have his recourse for indemnization against his captain.