Professional Documents
Culture Documents
Article 814
The resolution adopted to cause the damages which constitute a general average must necessarily
be entered in the log book, stating the motives and reasons therefor, the votes against it, and the
reasons for the disagreement should there be any, and the irresistible and urgent causes which
moved the captain if he acted of his own accord.
In the first case the minutes shall be signed by all the persons present who could do so before
taking action if possible, and if not at the first opportunity; in the second case by the captain and by
the officers of the vessel.
In the minutes and after the resolution there shall be stated in detail all the goods cast away, and
mention shall be made of the injuries caused to those kept on board. The captain shall be obliged to
deliver one copy of these minutes to the maritime judicial authority of the first port he may make
within twenty-four hours after his arrival, and to ratify it immediately by an oath.
Article 815
The captain shall supervise the jettison, and shall order the goods cast overboard in the following
order:
1. Those which are on deck, beginning with those which embarrass the handling of the vessel
or damage her, preferring, if possible, the heaviest ones and those of least utility and value.
2. Those in the hold, always beginning with those of the greatest weight and smallest value, to
the amount and number absolutely indispensable.
Article 816
In order that the goods jettisoned may be included in the gross average and the owners thereof be
entitled to indemnity, it shall be necessary in so far as the cargo is concerned that their existence on
board be proven by means of the bill of lading; and with regard to those belonging to the vessel, by
means of the inventory made up before the departure, in accordance with the first paragraph of
Article 612.
Article 817
If in lightening a vessel on account of a storm, in order to facilitate her entry into a port or
roadstead, part of her cargo should be transferred to lighters or barges and be lost, the owner of
said part shall be entitled to indemnity, as if the loss has originated from a gross average, the
amount thereof being distributed between the entire vessel and cargo which caused the same.
If, on the contrary, the merchandise transferred should be saved and the vessel should be lost, no
liability can be demanded of the salvage.
Article 818
If, as a necessary measure to extinguish a fire in a port; roadstead; creek, or bay, it should be
decided to sink any vessel, this loss shall be considered gross average, to which the vessels saved
shall contribute.
(FROM UP TRANSPO REVIEWER)
Coastwise Lighterage Corp vs. CA and Phil. Gen. Insurance Co. (1995)
The distinction between the two kinds of charter parties (i.e. bareboat or demise and contract of
affreightment) is more clearly set out in the case of Puromines, Inc. vs. Court of Appeals:
Under the demise or bareboat charter of the vessel, the charterer will generally be regarded as the
owner for the voyage or service stipulated. The charterer mans the vessel with his own people and
becomes the owner pro hac vice, subject to liability to others for damages caused by negligence. To
create a demise, the owner of a vessel must completely and exclusively relinquish possession,
command and navigation thereof to the charterer, anything short of such a complete transfer is a
contract of affreightment (time or voyage charter party) or not a charter party at all.
A contract of affreightment is one in which the owner of the vessel leases part or all of its space to
haul goods for others. It is a contract for special service to be rendered by the owner of the vessel and
under such contract the general owner retains the possession, command and navigation of the ship, the
charterer or freighter merely having use of the space in the vessel in return for his payment of the
charter hire.
Although a charter party may transform a common carrier into a private one, the same however is not
true in a contract of affreightment on account of the aforementioned distinctions between the two.
Thus, Coastwise, by the contract of affreightment, was not converted into a private carrier, but
remained a common carrier and was still liable as such.
1. Demise or bareboat charter - involves the transfer of full possession and control of the vessel for
the period covered by the contract, the charterer obtaining the right to use the vessel and carry whatever
cargo it chooses, while manning and supplying the ship as well
2. Time Charter - contract to use a vessel for a particular period of time, the charterer obtaining the
right to direct the movements of the vessel during the chartering period, although the owner retains
possession and control
3. Voyage Charter - contract for the hire of a vessel for one or a series of voyages usually for the
purpose of transporting goods for the charterer; the voyage charter is a contract of affreightment and is
considered a private carriage
- being a private carriage, the parties may freely contract respecting liability for damages to the
goods and other matters; responsibility for the cargo loss falls on the one who agreed to perform the duty
involved in accordance with the terms of the voyage charter