SEA-LAND SERVICE, INC., vs.
COURT OF APPEALS, A.P. MOLLER/MAERSK LINE and MAERSK-TABACALERA SHIPPING
AGENCY (FILIPINAS), INC.
FACTS AND RULING:
Florex was
suing in its complaint under the provisions of the bill of lading issued to it
by the principal carrier (AMML) and not the bill of lading issued by petitioner
as containership operator. Florex, therefore had a proper cause of action
against AMML.
The
Co-operation in the Pacific contract entered into by the parties provide,
nevertheless, that the principal carrier, in case of suits, can seek damages
and/or indemnity from petitioner as Containership Operator for whatever final
judgment may be adjudged against it under the Complaint of Florex(clause 16.3
of the Agreement).
However,
the court held that it is only through arbitration that the liability of the
containership operator may be determined pursuant to the provision in the
Agreement. The third party complaint by AMML thus cannot proceed without first
going through arbitration.
It was
right for the Court to grant the petition and dismiss the third party complaint
by AMML.
