Doctrine of Limited Liability (Hypothecary

Rule
- Limited to the vessel itself

a. Liability of Ship Owners and
Shipping Agents
- Limited to the amount of interest in
said vessels.
- Interest extends to:
1. Vessel itself
2. Equipments
3. Freightage
4. Insurance proceeds
b. Exceptions to limited liability
1. Claims under workmens
compensation
2. Injury or damage due to
shipowner or to the concurring
negligence of the shipowner and
captain
3. The vessel is insured
4. Expenses for repair on vessel
completed before loss
5. In case there is no total loss and
the vessel is not abandoned
6. Collision between two negligent
vessel.

Accidents and Damages in Maritime
Commerce
a. Averages
An extraordinary or accidental expense incurred during the
voyage in order to preserve the cargo, vessel or both, and all
damages or deterioration suffered by the vessel from departure
to the port of destination, and to the cargo from the port of
loading to the port of consignment.