In a battle that author James D. Hornfischer would call "The Last Stand of the Tin Can Sailors", the very powerful force of Japanese battleships, cruisers, and destroyers commanded by Admiral Kurita engaged a US task unit of six escort carriers, three destroyers, and four destroyer escorts. The Americans were taken entirely by surprise because the Seventh Fleet had firmly believed that its northern flank was being protected by Admiral Halsey's immensely powerful 3rd Fleet, which consisted of eight fleet carriers and six fast battleships.
The brunt of the Japanese attack fell on the northernmost of the escort carrier units, Rear Admiral Clifton Sprague's Task Unit 77.4.3 (usually referred to by its radio call-sign "Taffy 3"). Ill-equipped to fight large-gunned warships, Taffy 3's escort carriers attempted to escape from the Japanese force, while its destroyers, destroyer escorts, and aircraft made sustained attacks on Kurita's ships. The destroyers and destroyer escorts only had torpedoes and up to 5 in (127 mm) guns, nonetheless they had radar-assisted gun directors; the Japanese had heavy caliber weapons up to 18.1 in (460 mm) but relied upon less accurate optical rangefinders. The US also had large numbers of aircraft available which the Japanese lacked. The ordnance for the escort carriers' aircraft consisted mostly of high-explosive bombs used in ground support missions, and depth charges used in anti-submarine work, rather than the armor-piercing bombs and torpedoes which would been more effective against heavily armored warships. Nevertheless, even when they were out of ammunition, the American aircraft continued to harass the enemy ships, making repeated mock attacks, which distracted them and disrupted their formations.
In all, two US destroyers, a destroyer escort, and an escort carrier were sunk by Japanese gunfire, and another US escort carrier was hit and sunk by a kamikaze aircraft during the battle. Kurita's battleships were driven away from the engagement by torpedo attacks from American destroyers; they were unable to regroup in the chaos, while three cruisers were lost after attacks from US destroyers and aircraft, with several other cruisers damaged.
Due to the ferocity of the defense, Kurita was convinced that he was facing a far superior force and withdrew from the battle, ending the threat to the troop transports and supply ships.
http://en.wikipedia.org/wiki/Taffy_3With one carrier of the group sunk, others badly damaged and squadron aircraft courageously coordinating in the attacks by making dry runs over the enemy Fleet as the Japanese relentlessly closed in for the kill, two of the Unit’s valiant destroyers and one destroyer escort charged the battleships point-blank and, expending their last torpedoes in desperate defense of the entire group, went down under the enemy’s heavy shells as a climax to two and one half hours of sustained and furious combat. The courageous determination and the superb teamwork of the officers and men who fought the embarked planes and who manned the ships of Task Unit 77.4.3 were instrumental in effecting the retirement of a hostile force threatening our Leyte invasion operations and were in keeping with the highest traditions of the United States Naval Service
http://www.destroyerhistory.org/fletcherclass/citationtaffyiii.html