CHAPTER 10 MARITIME LAW
Where the injury or death to a
What is Maritime Law?
Maritime law is the system of laws which
particularly relates to the affairs and business
of the sea, to ships, their crews and navigation
and to marine conveyance of persons and
property. (p. 422)
What governs maritime law?
1. New Civil Code
2. Book III Code of Commerce applied
suppletorily
3. Special laws
a. Salvage Law
b. Carriage of Goods by Sea
c. Ship Mortgage Decree
What does real and hypothecary nature of
maritime law mean?
It simply means that the liability of the carrier
in connection with losses related to maritime
contracts is confined to the vessel, which is
hypothecated for such obligations or which
stands as the guaranty for their settlement.
Thus, the liability of the vessel owner and
agent arising from the operation of such vessel
were confined to the:
1. vessel itself
2. its equipment
3. freight
4. insurance, if any.
What is the limited liability rule?
No vessel, no liability. The shipowners or
agents liability is merely co-extensive with
his interest in the vessel such that a total loss
thereof results in its extinction. The total
destruction of the vessel extinguishes maritime
lines because there is no longer any res to
which it can attach.
Exceptions to limited liability rule
1.
passenger is due either to the fault of
the shipowner, or to the concurring
negligence of the shipowner and
captain;
2. where the vessel is insured
3. in workmens compensation claims
4. Expenses for repairs and provisioning
of the ship prior to the departure
thereof
5. The vessel is not abandoned
What is abandonment?
Abandonment of the vessel, its appurtenances
and freightage is an indispensable requirement
before the shipowner or ship agent can enjoy
the benefits of the limited liability principle. If
the carrier does not want to abandon the
vessel, then he is still liable even beyond the
value of the vessel.
What is a protest?
Protest is the written statement by the
master of a vessel or any authorized
officer,
Attested by proper officer or a notary,
To the effect that damages has been
suffered by the ship.
When is protest required?
1. When the vessel makes an arrival
under stress
2. When the vessel is shipwrecked
3. Where the vessel has gone through a
hurricane or the captain believes that
the cargo has suffered damages or
averages
4. Maritime collisions
*In collisions, maritime protests must be made
within 24 hours after a collision and the
circumstances of the collision are declared or
made known before a competent authority.
When is it not required?
 1. When it does not fall under the four
cases mentioned
2. When what is involved is not a vessel
CHAPTER 11 VESSELS
What is a vessel?
A vessel or watercraft is any barge, lighter,
bulk carrier, passenger ship, freighter, tanker,
container ship, fishing boats, or other artificial
contrivance utilizing any source of motive
power, designed, used or capable of being
used as a means of transportation operating
either as a common contract carrier, including
fishing vessels covered under PD No. 43.
Exceptions:
1. Those owned and/or operated by the
Armed Forces of the Philippines and
by foreign governments for military
purposes
2. Bancas, sailboats and other waterbone
contrivance of less than three gross
tons capacity and not motorized.
Kinds of vessels:
Ships or vessels are classified depending on
their use, size and other criteria.
Under SOLAS 1974, the following are the
classification of ships:
1. Passenger ship a ship which carries
more than 12 passengers
2. Cargo ship any ship which is not a
passenger ship
3. Tanker cargo ship constructed or
adapted for the carriage in bulk of
liquid cargoes of an inflammable
nature
4. Fishing vessel used for catching fish,
whales, seals, or other living resources
of the sea
5. Nuclear ship ship provided with a
nuclear power plant
6. New ship ship the keel of which is
laid or which is at a similar stage of
construction on or after the date of
coming into force of the SOLAS 1974.
7. Existing ship not a new ship
*SOLAS 1974 Safety of Life At Sea
Is vessel a personal property?
Yes. Vessels are personal property under
Article 416 of the Civil Code. The Code of
Commerce also provides:
Art. 585. For all purposes of law not modified
or restricted by the provisions of this Code,
vessels shall continue to be considered as
personal property.
How are vessels acquired?
Vessels may be acquired or transferred by any
means recognized by law. Thus, vessels may
be sold, donated, and may even be acquired
through prescription.
NCC provides that ownership and other real
rights over property are acquired and
transmitted by law, by donation, by estate and
intestate succession, and in consequence of
certain contracts, by tradition, by occupation
and by means of prescription.
Rule as to ownership by prescription
Ordinary prescription ownership of a vessel
shall be acquired by possession in good faith,
continued for 3 years, with a just title duly
recorded.
Extraordinary prescription Continuous
possession for 10 years (good faith and just
title not required).
Can a captain acquire ownership by
prescription of a vessel which he is in
command?
No.
Requisites for a person to acquire
ownership through ordinary prescription:
 1. The person who claims ownership
must be in continuous possession
2. Possession must be for a period of 3
years
3. Possession must be in good faith
Sale of a vessel
In a contract of sale, the mode of transferring
title or ownership is tradition or actual or
constructive delivery.
What is included in the sale of a vessel?
In the sale of a vessel, it shall always be
understood as included the rigging, masts,
stores, and engine of a steamer appurtenant
thereto, which at the time belongs to the
vendor.
What is not included?
Arms, munitions of war, provisions and fuel
shall not be considered as included in the sale.
What happens if the sale is made while the
vessel is on a voyage?
If the alienation of the vessel should be made
while it is on a voyage, the freightage which it
earns from the time it receives its last cargo
shall pertain entirely to the purchaser, and the
payment of the crew and other persons who
make up its complement for the same voyage
shall be for his account.
What if the sale is made after vessel has
arrived at the port of destination?
The freightage shall pertain to the vendor, and
the payment of the crew and other individuals
who make up its complement shall be for his
account, unless the contrary is stipulated in
either case.
Right of redemption of co-owners
If the vessel is sold to a third person, a co-
owner is given the right of repurchase and
redemption. The co-owner may exercise this
right only within 9 days following the
inscription of the sale in the registry and by the
deposit of the price.
Nationality of vessels
Vessels that are duly registered in the
Philippines are considered Philippine Flag
vessels. They are deemed to possess Philippine
nationality within the contemplation of the
UNCLOS.
Under the UNCLOS, ships have the
nationality of the State whose flag they are
entitled to fly. There must exist a genuine link
between the State and the ship.
Can ships sail under multiple flags?
General rule ships shall sail under the flag of
one State only
Exceptions in cases expressly provided for in
the international treaties or in the UNCLOS.
What does Flags of Convenience mean?
There is no genuine link between the State and
the ship and the registration is just a matter of
convenience.
The absence of a genuine link is reflected in
either the absence or minimal regulation of the
registered vessels by the country where the
vessels are registered.
Rule on registration of vessels
Vessels are registered through the Maritime
Industry Authority (MARINA). The person
who is the registered owner of the vessel is
presumed to be the owner of the vessel.
Registration of Philippine vessel applies to all
types of ships operating in Philippine waters
regardless of size and utilization, whether with
power or without power, including those ships
below 3 gross tons, motorized or non-
motorized.
Exception to registration:
1. Warships and naval ships
 2. ships of the Philippine Coast Guard
3. all ships of foreign registry
temporarily used in Philippine waters
4. inflatable boats used for rescue made
of either a single or more rubber
tubing.
What is a ships manifest?
It is a declaration of the entire cargo. Its object
is to furnish customs officers with a list to
check against, to inform the revenue officers
what goods are being brought into the port.
Vessels are required to carry manifests in
coastwise trade.
What is a logbook?
Official record of a ships voyage which its
captain is obligated by law to keep wherein he
records the decisions he has adopted, a
summary of the performance of the vessel, and
other daily events.
What is a cabotage?
The right of cabotage is the right of foreign
vessels to engage in coastwise shipping, that
is, to provide service from one place within the
Philippines to another place in the Philippines.
Before, foreign vessels did not have the right
of cabotage. Now it is provided under the
Foreign Ships Co-Loading Act.
CHAPTER 12 SHIP MORTGAGE AND
MARITIME LIENS
What is preferred mortgage?
A preferred mortgage shall constitute a lien
upon the mortgaged vessel in the amount of
the outstanding mortgage indebtedness
secured by such vessel.
Requirements for preferred mortgage:
1. The mortgage is recorded as provided
in Sec. 3 of PD 1521 (mortgage
should be recorded in the office of the
Philippine Coast Guard)
2. An affidavit is filed with the record of
such mortgage to the effect that the
mortgage is made in good faith and
without any design to hinder, delay or
defraud any existing or future creditor
of the mortgagor or any lien of the
mortgaged vessel
3. The mortgage does not stipulate that
the mortgagee waives the preferred
status thereof.
4. Mortgage should cover the whole
vessel
5. Vessel must be of domestic ownership
What is a maritime lien?
It is a privileged claim on a vessel for some
service rendered to it to facilitate its use in
navigation. It is a special property right in a
ship given to a creditor by law as security for a
debt or claim subsisting from the moment the
debt arises with right to have the ship sold and
debt paid out of the proceeds.
QUESTIONS FROM STEVE:
1. What is common carrier
2. Test of common carrier
3. Pipeline common carrier
4. Case nga nagsumbagay ang security
guard and passenger sa train station
then nahulog si passenger.