What is Maritime/AdmiralityLaw?

-It is the system of laws which particularly

relates to the affairs and business of the sea, to
ships, their crews and navigation, and to
maritime conveyance of persons and property.
Special Laws
Book III, Code of Commerce
Act No. 2616, Salvage Law
CA No. 65, COGSA
PD No. 1521, Ship Mortgage Decree of 1978
Primary Governing Law: Civil Code
Treaties and Conventions
UNCLOS
SOLAS 1974
Tonnage Convention 1969
-though Philippines has not yet acceded, PH still
adopts/follows because they form part of Intl
Customs. (Example: COLREGS)
Hypothecary Nature
-right which a creditor has over a thing of
another as security to the effect that he has the
power to sell and to be paid without transfer of
the title to the thing.
-the liability of the owner of the vessel is limited
to the vessel itself
Limited Liability Rule
-No vessel, no liability
-Total destruction of the vessel extinguishes
maritime liens because there is no longer any res
to which it can attach
General Rule: The liability of the shipowner and
the ship agent is limited to the amount of interest
in said vessel is extinguished. Interest extends
to:
(1) The vessel itself;
(2) Equipment;
(3) Freightage; and
(4) Insurance Proceeds.

Exceptions:
1. Claims under the Workmens Compensation
Act;
2. Injury or damage due to the shipowner or to
the concurring negligence of the shipowner
and the captain;
3. The Vessel is insured;
4. Expenses for repair on vessel before loss;
5. In case there is no total loss and the vessel is
not abandoned; and
6. Collision between two negligent vessels.
Art. 857. Ship agent is civilly liable for indemnities in
favor of 3rd persons arising from the conduct of
the captain. In case of goods loaded on vessel,
he may exempt himself therefrom by
abandoning the vessel with all the equipment
and freight earned during the voyage.
Art. 643. If the vessel and her cargo should be totally
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.
If portion (vessel/cargo) be saved, crew engaged
on wages including captain, shall retain rights on
the salvage so far as they go, on the remainder
of the vessel as well as the amount of freightage
of the cargo saved, sailors engaged on shares
shall not have any right on the salvage of the
hull but only on the freightage saved. If worked
to recover the remainder of the shipwrecked
vessel, given from the amount of salvage award
in proportion to the efforts and _____
encountered.
Art. 837. Civil liability by shipowners is limited to the
value of the vessel with all her appurtenances
and freight earned during the voyage.
_____ only (limited liability rule):
1. Liability to 3rd persons;
2. Acts of the captain
3. Collisions

Yangco vs. Laserna

-Vessel totally perished, any act of abandonment

would be an idle ceremony
-Whether the abandonment of the vessel sought
by petitioner was in accordance with law or not
is immaterial
If vessel is co-owned:
Art. 590. Co-owners civilly liable in proportion
to their contribution to the common fund for the
results of the acts of the captain. Each co-owner
may exempt himself by abandonment, before a
notary of part owned.
Exceptions:
1. Injury or death of passenger is due either to
the fault of shipowner or concurring
negligence of shipowner and captain;
2. Vessel is insured;
3. Workmens Compensation Claim; and
4. Liability of owner for repairs.
Persons who take part in maritime commerce
(not included) Chapter 9?
1. Shipowner
-person primarily liable for damages
sustained in the operation of the vessel
-person in possession, control and
management of the vessel and the
consequent right to direct her navigation
and receive freight earned and paid,
while his possession continues
2. Ship agent
-person entrusted with the provisioning
and representing the vessel in the port in
which it may be found; also includes
shipowner
3. Captain
-those who govern vessels that navigate
the high seas or ships of large
dimensions and importance though
engaged in coastwise trade
4. Masters
-those who command smaller ships
engaged exclusively in coastwise trade
5. Pilot
-person duly qualified, and licensed to
conduct a vessel into and out of ports or
in certain waters
6. Other officers and crew

-such as but not limited to desk officers,

chief engineers, engineer officers, radio
officers, chief mates, paramedics, major
patrons, minor patrons, boat captains,
marine diesel mechanics and electricians
Other Officers and Crew
1. Sailing Mate/First Mate - Second chief
of the vessel who takes the place of the
captain in case of absence, sickness, or
death and shall assume all of his duties,
powers and responsibilities.
2. Second Mate - takes command of the
vessel in case of the inability or
disqualification of the captain and the
sailing mate, assuming in such case their
powers and responsibilities.
3. Engineers - Officers of the vessel but
have no authority except in matters
referring to the motor apparatus.
4. Crew - the aggregate of seamen who
man a ship, or the ship's company.
Protest
-Written statement by master of the vessel,
authorized officer or a notary, to the effect that
damages has been suffered by the ship
-Required by the Code of Commerce in the
following cases:
1. Vessel makes an arrival under stress
2. Vessel is shipwrecked
3. Vessel has gone through a hurricane
4. Maritime Collisions
-Declaration before a competent authority of the
point where the collision took place or the first
port of arrival of the vessel if in the Philippine
territory, and to consul of the RP if outside PH.
It must be presented within 24 hours in order to
recover losses and damages arising from
collisions prerequisite to the bringing of an
action for damages.

Kinds of Charter parties

1. Bareboat or Demise Charter

-Shipowner leases to the charterer

whole vessel, transfer of command
possession and control (CPC) over
navigation, master and crew
2. Contract of affreightment
a. Time charter-vessel is leased
for a fixed period
b. Voyage Charter-vessel is leased
for a single or particular
voyage, charter hires vessel
only
Requisites of a charter party
a) Consent of the contracting parties
b) Existing Vessel
c) Freight
d) Compliance in writing
e) Drawn in duplicate
f) Signed by the parties
Admirality Jurisdiction-BP129 (Judiciary reorganization
act of 1980) provides:
RTC has jurisdiction if demand/claims exceeds
P300,000.00 (outside MM)
P400,000.00 (within MM)
If equal to or less than above amounts, MTC
Test used to determine whether a case involving a
contract comes within the admiralty and maritime
jurisdiction of a court:
1. Subject matter-true criterion of a maritime
service or a maritime transaction
-depends on the nature and subject matter of the
contract having reference to maritime service
and transactions
2. Location test-english rule follows
-exercised only on contracts made upon the sea
and to be executed thereon
Bottomry
-Contract where owner of ship borrows for use,
equipment or repair of vessel for a definite term
and pledges the ship as security, stipulating it
ship gets lost during the voyage or time of
borrowing, lender shall lose his money (Art.
719)

Respondentia

-loan taken on security of the cargo laden on a

vessel and repayable upon safe arrival of cargo
at the destination (Art. 719)
Requisites for general average
1. Common danger
2. Deliberate sacrifice
3. Success saving
4. Compliance with legal steps or formalities

Order of Jettisoning Goods

1. Those which are on deck, preferring the heaviest
one with the least utility and value; and
2. Those which are below the upper deck,
beginning with the one with greatest weight and
smallest value (Art. 815)
Note:
Not entitled to indemnity - charterer who loads
goods different from those in
contract of
charter party without knowledge
of
owner or captain
-Particular average
Collision
-Impact or sudden contact of a vessel with
another wherein both vessels were moving
Three Zones of Collision
1. First Zone - all of the time up to the moment
when risk of collision begins. No rule applicable
yet as none is necessary.
2. Second Zone - time between moment when risk
of collision begins and moment it becomes a
practical certainty. It is the period where conduct
of the vessel is primordial. It is in this zone that
vessels must strictly observe nautical rules
unless a departure therefrom is
becomes
necessary to avoid imminent danger
3. Third Zone - time when collision is certain and
time of impact. An error in this zone would no
longer be legally consequential.

What happens when vessel at fault in a collision is

unknown?

-Each vessel must bear its own loss, but the

shippers of both vessels may go against the shipowners
who will be solidarily liable
Doctrine of Inscrutable Fault
-In case of collision where it cannot be
determined which between the two vessels was
at fault, both vessels bear their respective
damage, but both should be solidarily liable for
damages to the cargo of both vessels.

Arrival Under Stress

-arrival of the vessel at the nearest and most
convenient port which was decided upon after
determining that there is a well-founded fear of:
(1) seizure; (2) privateers; (3) pirates; and (4)
any accident of the sea disabling it to navigate.
Steps: 6
1. Determination of the captain
2. Assembly of officers by the captain
3. Summon the person interested in the cargo
4. Officers shall determine if there is a well
founded fear after examining the circumstance;
captain decides
5. Agreement drafted; minutes signed; entered into
logbook
6. Objection / protest - entered in the minutes also
Salvage
-service which one person renders to the owner
of a ship or goods, by his own labor, preserving
the goods or the ship which the owner or those
entrusted with the care of them have either
abandoned in distress at sea or are unable to
protect and secure
Kinds of Salvage Services
1. Voluntary - Compensation dependent upon
success
2. Per Diem - per day amount to cover a specific
task/job
3. Contract of compensation - payable only in case
of success

Claim for Valid Salvage

1. Marine Peril
2. Service Voluntarily Rendered

3. Success in whole or in part

4. Shipwrecked vessel is beyond the control of the
crew / abandoned
Persons not entitled to salvage compensation
1. Crew of the vessel saved;
2. Person who shall have commenced Salvage in
spite of opposition of the captain or his
representative;
3. In accordance with Sec. 3 of the Salvage Law, a
person who fails to deliver a salvaged vessel or
cargo to the Collector of Customs
COGSA
-under COGSA, a person receiving goods has an
obligation to file a claim for damages against
carrier within the following period:
1. If damage is apparent, claim shall be
filed immediately after the discharge of
goods; and
2. If not apparent, within 3 days.
Note: For international carriage, it must be one
year from delivery.
Public Utility
-Business or service engaged in supplying the
public with some commodity or service of
public consequence or essential to the general
public.
Public Service
-Every person who may own, operate, manage
or controls in the Philippines for hire or
compensation, with general or limited clientele,
whether permanent or occasional, or accidental
and done for general business purposes, any
common carrier or public utility, ice plants,
power and water supplies, communication and
similar public services.

Subjects of Salvage
1. Ship itself;
2. Jetsam - goods which are cast into the sea, and
there sink and remain underwater;

3. Floatsam or flotsam - goods which float upon

the sea when cast overboard;
4. Ligan or lagan - goods cast into the sea tied to a
buoy, so that they may be found again by the
owners
Derelict
-a ship or her cargo which is abandoned and
deserted at sea by those who were in charge of it
without any hope of recovering / intention of
returning it.

Towage
-act of towing or hauling something, a charge
made for towing.
Demurrage
-compensation for the delaying of a ship caused
by the charterer's failure to load or unload
beyond the scheduled time of departure.