Jose Guangco v. Edward Shipping & Mercantile, S.A., Cross-Complainant and v. Cabras Marine Corporation, Cross-Defendant And

Jose Guangco (“Guangco”), a crew member on the M/V Pacific Queen, was injured on board the Pacific Queen while it was being docked in Apra Harbor in Guam. Edward Shipping & Mercantile, S.A. (“Edward”) owns the Pacific Queen. At the time of the accident, a pilot employed by Cabras Marine Corporation (“Cabras”) was piloting the vessel. Guangco sued Edward and Cabras for personal injuries.

Edward cross-claimed against Cabras, alleging that the pilot’s negligence caused any injuries suffered by Guangco. Cabras replied that it was not liable, because its pilotage agreement with Edward contained a clause requiring that Edward indemnify Cabras for any injury resulting from the pilot’s negligence. Cabras brought a motion for partial summary judgment on this point, which was originally denied, but granted on reconsideration.

The order granting partial summary judgment was certified to be final, and Edward appealed the order to the District Court of Guam, Appellate Division. That court upheld the lower court decision, and Edward brought this appeal.

Edward raises two issues, both premised on the facts that pilotage within the harbor is compulsory, and that the two companies which offer…