MARITIME LAW

concepts
 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
Maritime Commerce
3. Special Laws:
Case: Philippine Shipping Company, et al. vs.
Francisco Garcia Vergara
 That which distinguishes the maritime from the
civil law and even from the mercantile law in
general is the real and hypothecary nature of the
former
Evidence of this real nature of maritime
law:
1. The limitation of the liability of the agents to the actual
value of the vessel
and the freight money.
2. The right to retain the cargo and the embargo and
detention of the vessel even cases where the ordinary civil
law would not allow more than a personal action against the
debtor or person liable.
Two reasons why it is impossible to do away
with these privileges:
The risk to which the thing is exposed.
The real nature of maritime law,
exclusively real, according to which the
liability of the parties is limited to a thing
to which is at mercy of the waves
The real and hypothecary nature of maritime
law 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.
Purpose: It was designed to offset such adverse
conditions and to encourage people and entities to
venture into maritime commerce despite the risks and
prohibitive cost of shipbuilding.
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) and insurance if any,
which limitation served to induce capitalists into effectively
wagering their resources against the consideration of the
large profits attainable in trade.
Real similar to transactions over real property
where to effect against third persons, registration
is necessary

Hypothecary the liability of the owner of the value

of the vessel is limited to the vessel itself
STATUTORY PROVISIONS:
Article 837, 587, 590 Art. 837: civil liability incurred
and 643 provides for by the ship owner:
liability limited to value of
limited liability of the vessel + appurtenances +
shipowner. (read full freightage earned during
provision) voyage
STATUTORY PROVISIONS:
Art. 643: vessel and cargo lost by reason of capture or
wreck: all rights shall be extinguished, both as regards the
crew to demand any wages whatsoever, and as regards the
ship agent to recover the advances made
STATUTORY PROVISIONS:
Art. 587: ship agent may
exempt himself of the civil
liabilities for the indemnities
in favor of third persons by
abandoning vessel with all
equipments and freight it
earned during voyage
Art. 590: co-owners
civilly liable in
proportion to their
interest and may
exempt liability by
abandonment of the
part of the vessel
belonging to him
Limited liability rule
-means that the liability of a shipowner for damages
in case of loss is limited to the value of his vessel.

No vessel, no liability.
The civil liability for collision is merely co-existent
with the interest in the vessel; if there was total loss,
liability is also extinguished.
EXCEPTIONS TO THE LIMITED LIABILITY RULE
1. Where the injury or death to a passenger is due
either to the fault of the shipowner, or to the
concurring negligence of the shipowner and the
captain (NEGLIGENCE)

GR: Shipowner is liable for the negligence of the

captain in collision cases
---- liability is limited to value of the vessel
EXCEPTIONS TO THE LIMITED LIABILITY RULE
Limited liability rule applies if the captain or the crew
caused the damage or injury as when unseaworthiness of
the vessel was caused by the negligence of the captain or
crew during the voyage.

However, if the failure to maintain the seaworthiness of the

vessel can be ascribed to the shipowner alone or the
shipowner concurrently with the captain, then the limited
liability principle cannot be invoked --- LIABILITY FOR
THE DAMAGES IS TO THE FULL EXTENT
EXCEPTIONS TO THE LIMITED LIABILITY RULE
LIABILITY FOR THE DAMAGES IS TO THE FULL EXTENT
EXCEPTIONS TO THE LIMITED LIABILITY RULE
2. Where the vessel is insured (INSURANCE)
Limited liability rule does not apply to insurance claims
Case: Vasquez vs. CA
The total loss of the vessel did not extinguish the liability of
the carriers insured.
Despite the loss of the vessel, therefore, its insurance
answers for the damages that a shipowner or agent, may be
held liable for by reason of the death of its passengers.
EXCEPTIONS TO THE LIMITED LIABILITY RULE
3. In the workmens compensation claims (WORKERS
COMPENSATION)

The provisions of the Code of Commerce have no room in the

application of the Workmens Compensation Act which seeks to
improve, and aims at the amelioration of, the condition of laborers
and employees
EXCEPTIONS TO THE LIMITED LIABILITY RULE
If an accident is compensable under the Workmens
Compensation Act, it must be compensated even when the
workmans right is not recognized by or is in conflict with other
provisions of the Civil Code or of the Code of Commerce
Liability under the Workmens compensation Act, even if the
vessel was lost, is still enforceable against the employer or
shipowner.
EXCEPTIONS TO THE LIMITED LIABILITY RULE
4. Expenses for repairs and provisioning of the ship prior to the
departure thereof
EXCEPTIONS TO THE LIMITED LIABILITY RULE
5. The vessel is not abandoned (ABANDONMENT)

Abandonment of the vessel, its appurtenances and the freightage

is an indispensable requirement before the shipowner or ship
agent can enjoy the benefits of the limited liability rule. If the
carrier does not want to abandon the vessel, he is still liable even
beyond the value of the vessel
EXCEPTIONS TO THE LIMITED LIABILITY RULE

The only instance where abandonment is dispensed with is when

the vessel was entirely lost. In such case, the obligation is
extinguished.

Only shipowner and ship agent can make an abandonment

Case: Aboitiz Shipping Corporation vs. General
Accident Fire and Life Assurance Corporation, Ltd.
a. Rights of the parties to claim against an agent or owner of
vessel may be compared to those of creditors against an
insolvent corporation whose assets are not enough to satisfy
the totality of claims as against it.

b. Creditors must limit their recovery to what is left in the name of

the corporation

c. In the sinking of a vessel, the claimants or creditors are limited

in their recovery to the remaining value of accessible assets. In
the case of lost vessel, these assets are the insurance proceeds
and pending freightage for the particular voyage
PROTESTS

- 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
1. When the vessel makes an arrival under stress

2. Where the vessel is shipwrecked

3. Where the vessel has gone through a hurricane or the captain

believe that the cargo has suffered damages or averages

4. Maritime collisions
Answer:

1. When it does not fall under the four cases mentioned above

2. When what is not involve is not a vessel