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Wednesday, July 09, 2008
Sulpicio sues Del Monte over toxic cargo
MANILA -- Sulpicio Lines filed a civil case Tuesday against the Del Monte Philippines, Inc. for alleged "deceit and non-disclosure" of the toxic nature of its cargo at the m/v Princess of the Stars.
Jordan Go, Sulpicio vice president for marketing and stockholder, whose family owns the capsized ferry, sued Del Monte for Maritime Tort, Breach of Terms, and Conditions in the Bill of Lading and Damages.
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In a complaint filed before the Manila Regional Trial Court (RTC), Go said Del Monte failed to comply with its contractual and legal obligation to fully disclose the toxic nature of its shipment.
"Due to Del Monte's deceit and non-disclosure, plaintiff was led to believe that the subject shipment of endosulfan to be regular cargo. Had defendant Del Monte disclosed the toxic nature of the cargo, plaintiff would not have loaded the same on board a passenger-cargo vessel, be its m/v Princess of the Paradise or m/v Princess of the Stars," the complaint stated.
Sulpicio asked for the total amount of P549,661.11, as actual damages representing the correct freight charges due the shipment of endosulfan, and double freight rates as and by way of penalties for defendant's Breach of the Terms and Conditions of the Bill of Lading.
The shipping firm also demanded P3 million for incurring undertaking special cargo retrieval operations and special salvage and refloating operations of the vessel in order to retrieve Del Monte's toxic shipment of endosulfan.
It likewise sought P1 million representing moral damages for loss of corporate goodwill and besmirched reputation for Sulpicio and P500,000 representing moral damages for Go; P200,000 as exemplary damages; P300,000 representing attorney's fees, expenses of litigation, docket and other lawful fees and charges; and costs of suit.
"Plaintiff was constrained to hire several foreign experts in order to undertake special cargo retrieval operations of Del Monte's toxic endosulfan cargo. Plaintiff had to likewise engage the expertise of foreign salvors in order to undertake special salvage and refloating operations of the vessel so as to prevent Del Monte's toxic cargo of endosulfan from leaking," the complaint stated.
The complainant alleged that on June 18, 2008, Del Monte filled up a Pro-Forma Bill of Lading for its particular transshipment consisting of one 40-footer container van, said to contain "400 Box Endosulfan Technical 94 percent Min, with a declared value of P3,698,000 and weight of 10,000 kilograms," consigned to the Collector of Customs, Cagayan de Oro City and Freight Collect at port of destination, on a pier-to-pier basis.
The freight charged was 1-A or for the amount of P58,894.18, corresponding to the rate for regular cargo.
Bill of Lading No. T-81 was thus issued by Sulpicio covering said shipment, based upon the information provided by Del Monte in the Pro Forma Bill of Lading, the complainant further alleged.
"Per Bill of Lading No. T-81, the shipment was booked for m/v Princess of Paradise, Voyage No. 650. However, Del Monte verbally informed Sulpicio that the said shipment was 'rush cargo' and in order to accommodate the shipper's request, said cargo was loaded on board the m/v Princess of the Stars, a passenger-cargo vessel that was set to depart Manila Port on June 20, 2008 ahead of m/v Princess of Paradise," said the complainant.
The roll-over of the subject was in accordance with Terms and Conditions of the Bill of Lading, and as requested by shipper, it added.
On June 21, the m/v Princess of the Stars sank off Sibuyan Island in Romblon Province while enroute to Cebu. Many lives were lost and there were more than 800 passengers and crew on board the said vessel when it capsized.
On June 25, Sulpicio received a letter from Del Monte regarding the subject shipment. For the very first time, Del Monte informed the shipping firm that the subject shipment was a "toxic substance and a marine pollutant."
"Sulpicio called to verify the veracity of the Del Monte letter but Del Monte refused to answer telephone calls from Sulpicio. Sulpicio immediately contacted the Fertilizers and Pesticide Authority (FPA) and inquired whether they knew of the subject shipment of endosulfan by Del Monte," the complaint stated.
It added: "The FPA stated that Del Monte was given a permit to use endosulfan as a fertilizer. In the meantime, Sulpicio kept on trying to get in touch with Del Monte in order to verify the subject shipment of endosulfan. Del Monte refused to take any calls from SLI."
Sulpicio said it wrote Del Monte stating that Del Monte never disclosed the nature and character of the cargo of endosulfan.
The shipping firm then wrote the FPA and the Philippine Coast Guard to inform the two agencies of the undisclosed cargo.
For Malacañang, Sulpicio may not be liable for the presence of endosulfan inside the sunken ship but it remains "morally liable" for the possible contamination it can cause to the environment.
"They're not yet off the hook, definitely," deputy presidential spokesman Anthony Golez said.
But he quickly admitted that the government's only option is to prompt the shipping company to help refloat the vessel and remove the 10,000 kilos of pesticide.
Golez said Sulpico Lines has the legal right to abandon the ship to its insurance company, which, in turn, may also do the same.
"The only time the government can actually touch the vessel is after three months from the time they abandoned the vessel," he said.
Endosulfan is used to control insect pests, including whiteflys, aphids, leafhoppers, Colorado potato beetles and cabbage worms. It is also being used in wood preservation, home gardening, and tse-tse fly control.
The pesticide was intended to address pink discoloration at the Del Monte pineapple plantation in Bukidnon.
A restricted pesticide, endosulfan can cause death or affect the nervous system if ingested. (ECV/JMR/Sunnex)
For more Philippine news, visit Sun.Star Bacolod. (July 9, 2008 issue)
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