3. What is the limited liability rule?

“No vessel, no liability”, expresses in the nutshell the limited liability rule. It means that the shipowner’s or agent’s
liability is merely co-extensive with his interest in the vessel such that a total loss thereof results in its extinction. If the
ship is totally lost, his liability is extinguished. If the ship or part thereof still exists, he can escape liability by
abandoning the vessel, its appurtenances and its freight.

4. Is there any exception to the abovementioned rule?

Yes. The exceptions are the following: (a) 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; (2) where the vessel is insured; and (3)
in workmen’s compensation.

5. Who has the burden of proof in order to in voke limited liability doctrine?

The carrier or shipowner has the burden of showing that it exercised extraordinary diligence in the transport of goods
it had on board in order to invoke the limited liability doctrine.

6. What is abandonment of the vessel means?

It 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.

Also called the “no vessel, no liability doctrine,” it provides that liability of ship owner is limited to ship
owner’s interest over the vessel. Consequently, in case of loss, the ship owner’s liability is also
extinguished. Limited liability likewise extends to ship’s appurtenances, equipment, freightage, and
insurance proceeds. The ship owner’s or agent’s liability is merely co-extensive with his interest in
the vessel, such that a total loss of the vessel results in the liability’s extinction. The vessel’s total
destruction extinguishes maritime liens because there is no longer any res to which they can attach.
(Monarch Insurance v. CA, G.R. No. 92735, June 8, 2000)

Private carrier. No." Both reflect the Victorian ideal ofchivalry in which the upper classes were expected to emulate a morality tied to sacred honor. 775. "women and children first. San Diego.pdf If the highest aim of a captain were to preserve his ship. Repairs and provisioning of the vessel before the loss of the vessel. 5. Insurance proceeds. The actions of the captain and men . The concept is closely related to another protocol from the nineteenth century. (Oching v. 586) 2. Voyage is not maritime in character. the proceeds will go to the persons entitled to claim from the shipowner. 1946) 4. Sept. L-42926. G.WHAT ARE THE EXCEPTIONS TO THE DOCTRINE OF LIMITED LIABILITY? 1. (Art.99 "The captain goes down with the ship" is the maritime concept and tradition that a sea captain holds ultimate responsibility for both his ship and his passengers and will die trying to save either of them.R. Dec. 1985) 3. or 6. No.html#8XCQvy8HZTS7wWwy. he would keep it in port forever. Note: But if the captain is the one who is guilty. 13. Thomas Aquinas Read more at http://www. When the shipowner is guilty of fault or negligence.com/Documents/Limitation%20of%20Liability%20in %20Maritime%20Accidents. Workmen’s Compensation cases (now Employees’ Compensation under the Labor Code). If the vessel is insured. and respect for the disadvantaged. abandonment is still an option. G.brainyquote. hence.com/quotes/quotes/t/thomasaqui187122.syciplaw. CA.R. (Vasquez v. 17. http://www. doctrine may still be invoked. service.

. Give honor to the lives…. I will carry you out… Increase sense of security… bring back the beauty of travelling by ship… increase transport of humans… provide better assurance to traders… the world be a better place… Is there a difference when airplanes crash? . Better safety procedures… increase assurance… Increase the standards… innovation… pioneer in ackowldgement of rights… potential leader in maritime industry…use of technological advancements… globally comepetetive… instead of hiding behind the limited liability.during the sinking of HMS Birkenhead in 1852 prompted praise from many due to the sacrifice of the men who saved the women and children by evacuating them first. there are hazards that may go along the way. I will not abandon… I will do everything to make you reach your destination as safely as possible… I was born to carry you out. Emphasis on Quality as a way to attack more business. Bottom lines Cost of abandoning the ship is much lesser than the liabilities which would follow in salvaging a vessel. Changing times… law was imposed for the benefit of shipowner’s to attract people in going into the business of shipping. Rudyard Kipling's poem "Soldier an' Sailor Too" and Samuel Smiles' Self-Help both highlighted the valour of the men who stood at attention and played in the band as their ship was sinking.. but as true captain. it should be embraced… making a stand that yes.

101 islands. With waters in between the 7.Earning People’s Trust by abolishing the limited liability rule in Reinventing the Maritime Industry Abolishing Limited Liability and Increasing Integrity : The Makings of a Globally Competitive Maritime Industry The Philippines is gifted with maritime resources. it has the opportunity to become one of the most .