Chua Yek Hong v.

IAC
Facts:
Petitioner loaded 1,000 sacks of copra on board a vessel owned by respondents, for
shipment from Puerto Galera to Manila. lon! its way, the vessel capsi"ed and sank.
Petitioner #led an action for dama!es for breach of contract of carria!e.
$ssue:
%hether respondents can avail of the limited liability
&eld:
'he shipowner(s or a!ent(s liability is merely co)e*tensive with his interests in the
vessel such that the total loss thereof results in its e*tinction. 'he total destruction
of the vessel e*tin!uishes maritime liens as there is no lon!er any res to which it
can attach.
'he primary law is the +ivil +ode and in default thereof, the +ode of +ommerce and
other special laws are applied. ,ince the +ivil +ode contains no provisions re!ulatin!
liability of shipowners or a!ents in the event of total loss or destruction of the
vessel, it is the provisions of the +ode of +ommerce that !overn in this case.