(File photo)
MANILA – The Court of Appeals (CA) has turned down the petition filed by Sulpicio Lines Inc. (SLI) questioning the decision of the Makati Regional Trial Court dismissing its cross-claim against one of its insurers in a suit over cargo lost when the M/V Princess of the Stars sank off Sibuyan Island in 2008.
In a 17-page decision dated August 14, the appellate court affirmed the lower court’s decision to dismiss the cross-claim of SLI (now known as Philippine Span Asia Carrier Corp.) against its hull insurer, Oriental Assurance Corp. (OAC) in a suit initiated by Pioneer Insurance and Surety Corp.
Pioneer is the insurer of one of the shipped goods from Robinson’s Handyman Inc. worth PHP 1.9 million, which was lost when the vessel sank.
SLI subsequently settled all claims in a compromise agreement with Pioneer and asked the Makati court to dismiss the cases.
However, the Makati court, in granting the motion to dismiss, also dismissed the cross-claim of SLI with OAC.
SLI in its appeal claimed the dismissal of its cross-claim with OAC by the Makati court does not reflect the agreement it entered into with Pioneer, which had been premised on SLI’s claim that it is entitled to reimbursement from OAC of any settlement amounts SLI paid to Pioneer.
In ruling against the ship owner, the court noted that since the case between Pioneer and SLI had been settled with a compromise agreement, there is no finding of liability of SLI which would in turn make OAC liable to SLI.
“In the absence of a finding as to the liability of SLI against Pioneer due to the dismissal of the main complaint, SLI's cross-claim against OAC, being entirely based on the main complaint that was already dismissed, must also be dismissed, there being no more nexus between them,” the CA said. (PNA)
