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: he is a general agent of the shipowner; he is also
commander and technical director of the vessel; and 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.