CODE OF COMMERCE OF THE PHILIPPINES COMMERCIAL CONTRACTS FOR TRANSPORTATION ARTICLE 349 – Commercial contract of transportation by land or water

• Has articles of commerce • Engaged in public transpo ARTICLE 350 – Bill of Lading • Receipt • Evidence of contract of carriage • Absence thereof does not negate CC but is best evidence of existence of CC ARTICLE 353 – The legal evidence of the contract between the shipper and the carrier shall be the bills of lading, by the contents of which the disputes which may arise regarding their execution and performance shall be decided, no exceptions being admissible other than those of falsity and material error in the drafting. After the contract has been complied with, the bill of lading which the carrier has issued shall be returned to him, and by virtue of the exchange of this title with the thing transported, the respective obligations and actions shall be considered cancelled, unless in the same act the claim which the parties may wish to reserve be reduced to writing, with the exception of that provided for in Article 366. In case the consignee, upon receiving the goods, cannot return the bill of lading subscribed by the carrier, because of its loss or of any other cause, he must give the latter a receipt for the goods delivered, this receipt producing the same effects as the return of the bill of lading. ARTICLE 354 – absence of a bill of lading, disputes shall be determined by the legal proofs which the parties may present in support of their respective claims ARTICLE 355 – The responsibility of the carrier shall commence from the moment he receives the merchandise, personally or through a person charged for the purpose, at the place indicated for receiving them. ARTICLE 356 – Carriers may refuse packages which appear unfit for transportation but if the shipment is insisted upon, the company shall transport them, being exempt from all responsibility if its objections, is made to appear in the bill of lading.

ARTICLE 357 – If by reason of well-founded suspicion of falsity in the declaration as to the contents of a package the carrier should decide to examine it, he shall proceed with his investigation in the presence of witnesses, with the shipper or consignee in attendance. If the shipper or consignee who has to be cited does not attend, the examination shall be made before a notary, who shall prepare a memorandum of the result of the investigation, for such purposes as may be proper. If the declaration of the shipper should be true, the expense occasioned by the examination and that of carefully repacking the packages shall be for the account of the carrier and in a contrary case for the account of the shipper. ARTICLE 358 – If there is no period fixed for the delivery of the goods the carrier shall be bound to forward them in the first shipment of the same or similar goods which he may make point where he must deliver them; and should he not do so, the damages caused by the delay should be for his account. ARTICLE 359 – If there is an agreement between the shipper and the carrier as to the road over which the conveyance is to be made, the carrier may not change the route, unless it be by reason of force majeure; and should he do so without this cause, he shall be liable for all the losses which the goods he transports may suffer from any other cause, beside paying the sum which may have been stipulated for such case. When on account of said cause of force majeure, the carrier had to take another route which produced an increase in transportation charges; he shall be reimbursed for such increase upon formal proof thereof. ARTICLE 360 – The shipper, without changing the place where the delivery is to be made, may change the consignment of the goods which he delivered to the carrier, provided that at the time of ordering the change of consignee the bill of lading signed by the carrier, if one has been issued, be returned to him, in exchange for another wherein the novation of the contract appears. The expenses with this change of consignment occasions shall be for the account of the shipper.

reserving his right to proceed against the latter if he was not the party directly responsible for the fault which gave rise to the claim of the shipper or consignee. • If receiver refuses to receive. receiver is liable ARTICLE 369 • Deposit to court equals delivery to party (consignment) • Liability discontinue to attach ARTICLE 370 • Period for delivery fixed. consignee not bound to receive them and have them in the hands of the carrier. ARTICLE 375 • The goods transported shall be bound to answer for the cost of transportation and for the expenses and fees incurred for them during their conveyance and until the moment of their delivery. ARTICLE 367 • Doubts or disputes with respect to conditions of goods. the claim against the carrier for damage or average be found therein upon opening the packages. After the periods mentioned have elapsed. carrier may demand the judicial sale of the goods transported in an amount necessary to cover the cost of transportation and the expenses incurred. otherwise carrier is liable for delay • Liquidated damages • Damages caused by delay ARTICLE 371 • Abandonment – carrier pay full value as if they are already lost ARTICLE 372 • Value of lost goods paid according to bill of lading ARTICLE 373 • Carrier who makes the delivery shall assume the obligations of those who preceded him in the conveyance. no claim shall be admitted against the carrier with regard to the condition in which the goods transported were delivered.ARTICLE 361 • GR: merchandise shouldered by shipper • proof of accident is the burden of carrier ARTICLE 362 • Liable for Art. 361 if arose through negligence or failure to take necessary precaution ARTICLE 363 • Outside of the cases mentioned in the second paragraph of Article 361. provided that the indications of the damage or average which gives rise to the claim cannot be ascertained from the outside part of such packages. carrier obliged to ship the goods in the same condition in which they were received ARTICLE 364 • Diminution of value of goods. or against the other carriers who may have received the goods transported without reservation. • The shipper and the consignee shall have an immediate right of action against the carrier who executed the transportation contract. • Acquire all the actions and rights of those who preceded him in the conveyance. or the transportation charges have been paid. . • The reservation made by the latter shall not relieve them from the responsibilities which they may have incurred by their own acts. it shall be examined by an expert ARTICLE 368 • Deliver without delay or obstruction otherwise carrier is liable. must be made on time. in which case the claim shall be admitted only at the time of receipt. ARTICLE 374 • In case of delay in this payment. may be made. damages should also be equitably reduced ARTICLE 365 • Rendered useless for sale and consumption. ARTICLE 366 – Within the twenty-four hours following the receipt of the merchandise. demanding their value at the current price on that day.

as well as mortgage liabilities. to be afterward enforced in admiralty by process in rem. CA.  The real and hypothecary nature of maritime law simply means that the liability of the carrier in connection with losses related to maritime contracts is confined to the vessel. with respect to the obligations and responsibility of the latter. CA. • In either case they shall be subrogated in the place of the carriers themselves. 337 SCRA 381) o Effect of sale: All pre-existing claims in the vessel are terminated. in satisfaction of which a vessel may be validly arrested and sold. provided it is claimed within the eight days ARTICLE 377 • Carrier liable for all the consequences which may arise from his failure to comply with the formalities prescribed by the laws and • If the carrier has acted by virtue of a formal order of the shipper or consignee of the merchandise.the liability of the owner of the value of the vessel is limited to the vessel itself (Doctrine of Limited Liability). for the unloading of goods from a vessel. Doctrine of limited liability 4. (PNB vs. Hypothecary . MARITIME LIEN o It constitutes a present right of property in the ship. 573. as well as with regard to their rights.• Prescribe eight days after the delivery has been made. 156 SCRA 169). 573-869) IMPORTANT CONCEPTS: 1. although they do not personally effect the transportation of the merchandise. and 2) The right to retain the cargo and embargo and detention of the vessel (Luzon Stevedoring Corp v. Causes of revocation of voyage 5. which stands as the guaranty for their settlement. contract to do so through others. Maritime lien and Preference of Credit 3. The evidence of real nature is shown by: 1) The limitation of the liability of the agents to the actual value of the vessel and the freight money. They will then be satisfied from the proceeds of the sale subject to the order of preference. It refers to a contract 2. MERCHANT VESSEL  Vessel engaged in maritime commerce. vs. and once prescribed. General Accident Fire and Life Assurance Corp.  Constitutes property which may be acquired and transferred by any of the means recognized by law. or as agents for transportations and conveyances. both shall become responsible ARTICLE 379 • Provisions in Articles 349 and following shall be understood as equally applicable to those who. whether foreign or otherwise. 337 SCRA 381) o If the maritime lien arose prior to the recording of a preferred mortgage. a jus in re. They shall continue to be considered as personal property. their crews and navigation. CA. Participants in maritime commerce 6. (PNB vs. it shall have priority over the said mortgage lien.  Arrastre service is not maritime in character.similar to transactions over real property with respect to effectively against third persons which is done through registration.  Maritime laws apply only to maritime trade and sea voyages. 585)  They are susceptible to maritime liens such as for the repair. 217 SCRA 359). and to maritime conveyance of persons and property. MARITIME COMMERCE (Arts. Real . (Arts. equipping and provisioning of the vessel in the preparation of a voyage. Loans on bottomry and respondentia 8. (Aboitiz Shipping Corp. Charter party 7. either as contractors for a particular and definite operation. the carrier shall have no other action than that corresponding to him as an ordinary creditor. ARTICLE 376 • Preference of the carrier to the payment of what is owed him shall not be cut off by the bankruptcy of the latter. Accidents in maritime commerce MARITIME/ADMIRALTY LAW  It is the system of laws which particularly relates to the affairs and business of the sea. DOCTRINE OF LIMITED LIABILITY . to ships. Merchant vessel 2. CHARACTERISTICS OF MARITIME TRANSACTION 1.

and all that relate to the requirements of navigation. Inability of the vessel to navigate. the obligation is extinguished. RIGHT OF SHIPOWNER OR SHIP AGENT TO ABANDON VESSEL  Instances: 1. San Diego 77 Phil 730).609. CA 138 SCRA 553). and 3.  Powers and functions: 1. usually issued in time of war or threatened hostilities. Escano. The only instance were abandonment is dispensed with is when the vessel is entirely lost (Luzon Stevedoring vs. 587 – civil liability for indemnities to third persons 2. Pilot A. 6. 2. also includes the shipowner. Art. Expenses for repair on vessel completed before loss. 2. Shipowners and ship agents B. 2. Supercargoes E. Collision between two negligent vessels. Blockade. (Chua v. Ship agent (naviero)  Person entrusted with provisioning and representing the vessel in the port in which it may be found. 3. 5. (Luzon Stevedoring v. Capacity to trade. Art. Blockade – A sort of circumvallation of a place by which all foreign connection and correspondence is. Discharge duties of the captain. 640) Terms: 1. details of equipment. CAUSES OF REVOCATION OF VOYAGE 1. Art. In case there is no total loss and the vessel is not abandoned. subject to Art. as far as human power can effect it. (Art. 3. and freight of the vessel. PARTICIPANTS IN MARITIME COMMERCE A. to be cut off. provisions of food and fuel. 4. 2. The vessel is insured (Vasquez vs. 687). Interdiction of commerce – A governmental prohibition of commercial intercourse intended to bring about an entire cessation for the time being of all trade whatever. 3. 4. In case of constructive loss of the vessel (Sec. while his possession continues. In case of leakage of at least ¾ of the contents of a cargo containing liquids (Art. 587). . Officers and crew of the vessel D. Abandonment of the vessel is necessary to limit the liability of the shipowner. Contract in the name of the owners with respect to repairs. 166 SCRA 183) EXCEPTIONS: 1. Embargo – A proclamation or order of a state.  Not a mere agent under civil law. 837 – collision 4. 138. 2) equipments. War or interdiction of commerce. In case of civil liability from indemnities to third persons (Art. 3. prohibiting the departure of ships or goods from some or all the ports of such state until further order. Insurance Code). armament.(HYPOTHECARY RULE) Cases where applicable: 1. Injury or damage due to shipowner or to the concurring negligence of the shipowner and the captain. 156 SCRA 169) The interest extends to: 1) the vessel itself. IAC. 590 – indemnities from negligent acts of the captain (not the shipowner or ship agent) 3. Embargo. control and management of the vessel and the consequent right to direct her navigation and receive freight earned and paid. 5. 643 – liability for wages of the captain and the crew and for advances made by the ship agent if the vessel is lost by shipwreck or capture GENERAL RULE: The liability of shipowner and ship agent is limited to the amount of interest in said vessel such that where vessel is entirely lost. CA 156 SCRA 169). Prohibition to receive cargo at destination. SHIPOWNERS AND SHIP AGENTS Shipowner (proprietario)  Person who has possession. 3) freightage. Art. and 4) insurance proceeds. he is solidarily liable with the ship owner. Claims under Workmen’s Compensation (Abueg vs. 2. Captains and masters of the vessel C.

make a new charter or insure the vessel after obtaining authorization from the shipowner or if granted in certificate of appointment. Follow instructions of and render an accounting to the ship agent. Leave the vessel last in case of wreck. Damages caused to the vessel or to the cargo by force majeure. 3. 610)  Sources of funds to comply with the inherent powers of the captain (in successive order): 1. respectively. Habitual drunkenness. Keep a Log Book. Supply. Representative of the government of the country under whose flag he navigates. Order repair of vessel to enable it to continue its voyage. 10. Must have passed the required physical and mental examinations required for licensing him as such. CA). By drawing on the ship agent. 587) Duty of Ship Agent to Discharge the Captain and Members of the Crew  If the seamen contract is not for a definite period or voyage. By a loan on bottomry. but are particularly used in accordance with the size of the vessel governed and the scope of transportation. Accounting Book and Freight Book. Observe rules to avoid collision. 2. i.4. Damage caused to the vessel or to its cargo through malice or manifest or proven negligence. at the port of arrival. 8. From the consignee of the vessel. except on the following grounds: a. (Art. From the consignee of the cargo. Civil Liabilities of the Shipowner And Ship Agent 1. 12. b. Legal capacity to contract. health. 2. 3. Comply with the requirements of customs. Bring on board the proper certificate and documents and a copy of the Code of Commerce.  The terms have the same meaning. vs. 2. Appoint crew in the absence of ship agent. 586) 2. 612)  A ship’s captain must be accorded a reasonable measure of discretionary authority to decide what the safety of the ship and of its crew and cargo specifically requires on a stipulated ocean voyage (InterOrient Maritime Enterprises Inc. equip. while on board vessel. Loss and damage to the goods loaded on the vessel without prejudice to their right to free themselves from liability by abandoning the vessel to the creditors. Filipino citizen. equip and provision the vessel. and small and coastwise. 3. General agent of the shipowner. 5. 3. 2. 6. Hold in custody properties left by deceased passengers and crew members. (Art. 9. (Art. Technical director of the vessel.. Command the crew and direct the vessel to its port of destination.  Qualifications: 1. 611)  Duties: 1. . Protest arrivals under stress and in case of shipwreck. d. 605) B. 609)  Inherent powers: 1. 7. 4. he may not discharge them until after the fulfillment of their contracts. he may discharge them at his discretion. Impose correctional punishment on those who. c. Insubordination in serious matters. 4. large and overseas. e. 5. Demand a pilot while entering or leaving a port. CAPTAINS AND MASTERS  They are the chiefs or commanders of ships. (Art. Stay on board during the loading and unloading of the cargo. 603)  If for a definite period. Order a new voyage. Make contracts for the charter of vessel in the absence of ship agent. Examine the ship before the voyage. Be on deck while leaving or entering the port. to repair. Theft. By sale of part of the cargo. 2. whether authorized or not. 3.e. (Art. 11. 4. fail to comply with his orders or are wanting in discipline. 5. and 6. (Art. etc. (Art.  Nature of position (3-fold character): 1. and provision the vessel. All contracts of the captain.  No liability for the following: 1. Robbery. (Art.

627)  Duties: 1.  Duties: 1. 2. 4. or a naval war with the power to which the vessel was destined occurs. Crew  No liability under the following circumstances: 1. the captain hires them. Perpetration of a crime. 3. 2. want of discipline.  Hired by the ship agent. and 3. 4. Inventory the rigging and equipment of the vessel. 3.631) Second Mate  Takes command of the vessel in case of the inability or disqualification of the captain and the sailing mate. Supervise all personnel maintaining the engine. 4. 647) Sailing Mate/First Mate  Second chief of the vessel who takes the place of the captain in case of absence. Not to change or repair the engine without authority of the captain. Inform the captain of any damage to the motor apparatus. equipment. 3. Engineers 4. 618) C. sickness.2. (Art. spare parts. 2. (Art. 632) Engineers  Officers of the vessel but have no authority except in matters referring to the motor apparatus. and provisioning of the vessel unless he has expressly bound himself personally or has signed a bill of exchange or promissory note in his name. Second Mate 3. Repeated insubordination. By the month. Change the course of the voyage on consultation with the captain and the officers of the boat. Assign work to crew members. 3. Thefts and robberies of the crew. 628 . When two or more are hired. but not exceeding 1/5 of the crew. 5. 2. Damages to vessel and to cargo due to lack of skill and negligence.  Third in command  Duties: 1. before beginning voyage. if laid up. Keep an Engine Book. (Art. captain attempts to change it. or death and shall assume all of his duties. Just Causes for the Discharge of Seaman While Contract Subsists 1. In charge of the motor apparatus. Obligations contracted for the repair. Arrange well the cargo. following the decision of the captain in case of disagreement. and in their absence. and other instruments pertaining to the engines. Keep the Binnacle Book. one of them shall be the chief engineer. By share of profits or freightage. 2. 632) Crew  The aggregate of seamen who man a ship. Damages due to mutinies. (Arts. 2. he may take in foreigners. 7. Responsible for all the damages caused to the vessel and the cargo by reason of his negligence. 2. Losses and fines for violation of laws. 5. 634) Classes of Seaman’s Contracts 1. By the voyage. (Art. 4. . 620) Solidary Liabilities of the Ship Agent/Shipowner for Acts Done by the Captain towards Passengers and Cargoes 1. 6. or the ship’s company. assuming in such case their powers and responsibilities. 5. Damages due to non-observance of marine regulations. (Art. Sailing Mate/First Mate 2. Provide himself with maps and charts with astronomical tables necessary for the discharge of his duties. 8. powers and responsibilities. If. For deviations. (Art. Damages due to misuse of power. Keep the engines and boilers in good condition. where he is present and in his absence. For arrivals under stress. (Art. 6. Preserve the hull and rigging of the vessel. 3. If a disease breaks out and be officially declared an epidemic in the port of destination. Discipline the crew. preferring Filipinos. OFFICERS AND CREW 1. If the vessel should change owner or captain.

P. from the captain to the cabin boy. Physical incapacity. Repeated incapacity and negligence. 6. to conduct a vessel into or out of ports.III PPA Admin Order 03-85) SPECIAL CONTRACTS OF MARITIME COMMERCE 1. Aquino. p. R.  Does not include the passengers or the persons whom the vessel is transporting. Contract of transportation of passengers on sea voyages 4.full payment. & Hernando. thus including the crew. compensation up to time of death if engaged on wage b. Ship owner or ship agent 2. 226 SCRA 476)  Parties: 1. if captured in defense of vessel . Accident caused by force majeure or natural calamity provided the pilot exercised prudence and extra diligence to prevent or minimize damages. Charter party 2. and licensed. Loan on bottomry 5. maneuvers. (Art.none. if by shares . (Planters Products. the Harbor Pilot is responsible for damage to a vessel or to life or property due to his negligence. if before departure. and service. 2004 ed. as when the pilot is obviously incompetent or intoxicated (Far Eastern Shipping Company vs. Art. 3. if on voyage in c.  Compulsory Pilotage – States possessing harbors have enacted laws or promulgated rules requiring vessels approaching their ports to take on board pilots licensed under the local laws. and full. 2.half of amount if death occurs on voyage out. the sailing mates. 4. or in certain waters. if by voyage .  The term generally connotes a person taken on board at a particular place for the purpose of conducting a ship through a river. 649) E. road or channel. Marine insurance CHARTER PARTY  A contract by virtue of which the owner or agent binds himself to transport merchandise or persons for a fixed price. full. Habitual drunkenness. Inc. CA). PILOT  A person duly qualified.  While in exercising his functions a pilot is in sole command of the ship and supersedes the master for the time being in the command and navigation of the ship. T. EXCEPT: 1. 645) Complement of the Vessel  All persons on board. except when the cause arises from the unworthiness of the vessel. food and fuel. 4. Bareboat or demise – The charterer provides crew.11.  Master pro hac vice for the time being in the command and navigation of the ship. Bill of lading 3. if after departure 2. transferring to the latter the entire . If death is natural: a. 5. Countermand or overrule by the master of the vessel in which case the registered owner of the vessel is liable. (Art. Desertion. Charterer  Classes: 1. D. SUPERCARGOES  Persons who discharges administrative duties assigned to him by ship agent or shippers.3. vs. (Sec. engineers. 637) Rules in case of Death of a Seaman  The seaman’s heirs are entitled to payment as follows: 1.full payment. or some principal part thereof is let/leased by the owner to another person for a specified time or use.  A contract by which an entire ship. keeping an account and record of transaction as required in the accounting book of the captain.wages up to the date of the capture. The charterer is liable as if he were the owner. 518) Liablity of Pilot GENERAL RULE: On compulsory pilotage grounds. necessary for the management. (Art. if death is due to defense of vessel . The shipowner leases to the charterer the whole vessel. or from a port. There are occasions when the master may and should interfere and even displace the pilot. the master does not surrender his vessel to the pilot and the pilot is not the master. (Notes and Cases on the Law on Transportation and Public Utilities. stokers and other employees on board not having specific designations. CA. Loan on respondentia 6. if captured due to carelessness .

command. the charterer assumes the customary rights and liabilities of the shipowner to third persons and is held liable for the expense of the voyage and the wages of the seamen. (Art. 4. (Art. lessee cannot give up the lease by paying a portion of the amount agreed upon. command and navigation of the ship. command and navigation of the ship Common carrier is not converted to a private carrier. If the leased property is sold to one who knows of the existence of the lease. command and navigation to charterer Common carrier is converted to private carrier. Contract of Affreightment – A contract whereby the owner of the vessel leases part or all of its space to haul goods for others. just for that one particular purpose only.598) 4. Captain in the absence of the ship agent or consignee and only if he acts in accordance with the instructions of the agent or owner and protects the latter’s interests. 2. LEASE If for a definite period. possession and consequent control over the vessel’s navigation. Freight 4. Ship agent if authorized by the owner/s or given such power in the certificate of appointment.bonus to be paid to the captain after the successful voyage. 689) Commercial law concept others caused by its negligence Charterer regarded as owner pro hac vice for the voyage Owner of vessel relinquishes possession. 3. CHARTER PARTY An entire or complete contract.679) 3. Owner or owners of the vessel. who thereby become the charter’s servants. the new owner must respect the lease. Charterer may subcharter entire vessel to 3rd person only if not prohibited in original charter. 5. PERSONS WHO MAY MAKE A CHARTER 1. (Art. Deadfreight – the amount paid by or recoverable from a charterer of a ship for the portion of the ship’s capacity the latter contracted for but failed to occupy. Consensual contract BAREBOAT OR DEMISE CHARTER Charterer becomes liable to BILL OF LADING More like a private receipt which the captain gives to accredit goods received from persons Real contract CONTRACT OF AFFREIGHTMENT (TIME OR VOYAGE CHARTER) Owner remains liable as carrier and . Demurrage – the sum fixed in the charter party as a remuneration to the owner of the ship for the detention of his vessel beyond the number of days allowed by the charter party for loading or unloading or for sailing. Existing vessel which should be placed at the disposition of the shipper 3.  The charterer becomes the owner of the vessel pro hac vice. 2. Because the charterer is treated as owner pro hac vice. Extra Lay Days – days which follow after the lay days have elapsed. 652 of the Code of Commerce Terms: 1. The new owner is not compelled to respect the charter party so long as he can load the vessel with his own cargo. Voyage or trip charter – the vessel is leased for one or series of voyages usually for purposes of transporting goods for charterer. It transforms a common carrier into a private carrier. (Art. Primage . Lay Days .days allowed to charter parties for loading and unloading the cargo. Time charter – vessel is chartered for a fixed period of time or duration of voyage. must answer for any breach of duty Charterer is not regarded as owner. The vessel owner retains possession. including the master and the crew. the charterer merely having use of the space in the vessel in return for his payment of the charter hired.609) REQUISITES OF A VALID CHARTER PARTY 1.  Kinds: a. either in whole or in majority part. Compliance with Art. Consent of the contracting parties 2.  The shipowner retains the possession. who have legal control and possession of the vessel 2. b. Civil law concept CHARTER PARTY Charterer may rescind charter party by paying half of the freightage agreed upon.

(ART. name and registry of the vessel.727) 3. but rather on the fact of actual physical transfer of cargo from one vessel to another.  It is not dependent on the ownership of the transporting ships or in the change of carriers.B.F. Time for repayment. may agree on any rate of interest. is a violation of contract and infringement of right of shipper and subjects carrier to liability if freight is lost event by cause otherwise excepted. If the effects on which the money is taken is not subjected to any risk. aleatory contract. (Magellan Manufacturing vs. WHEN LOAN ON BOTTOMRY OR RESPONDENTIA REGARDED AS SIMPLE LOAN 1. (CB Circular 905) Common elements: Exposure of security to marine peril. & F. 3. (Art. 7.the captain. by virtue of which one person lends to another a certain amount of money or goods on things exposed to maritime risks. 1. 3. unilateral. .I. . Name. 3. F. Only the owner of the cargo. 2. 719) Who may contract Shipowner or ship agent. TRANSSHIPMENT OF GOODS  The act of taking cargo out of one ship and loading it in another. Amount of the loan and the premium stipulated. C. 719) destination. the parties to a loan. is to be returned if the things are safely transported. the balance will be considered a simple loan.721) BOTTOMRY/ RESPONDENTIA Not subject to Usury Law Liability of the borrower is contingent on the safe arrival of the vessel or cargo at destination The last lender is a preferred creditor ORDINARY LOAN (MUTUUM) Subject to Usury Law Not subject to any contingency (absolute liability) The first lender is a preferred creditor Definition Loan made by shipowner or Loan taken on security of the cargo ship agent guaranteed by laden on a vessel. LOAN ON BOTTOMRY LOAN ON RESPONDENTIA 2. Full amount of the loan is not used for the cargo or given on the goods if all of them could not have been loaded. 6. 4. 720) Contents: Kind. or the transfer for further transportation from one ship or conveyance to another. Lender loaned an amount larger than the value of the object due to fraudulent means employed by the borrower. with its earnings. – cost. surnames and domiciles of the borrower and the lender.S.O. Goods pledged to secure repayment. 201 SCRA 102) LOAN ON BOTTOMRY AND RESPONDENTIA  A real. and repayable vessel itself and repayable upon safe arrival of cargo at upon arrival of vessel at destination. or the transfer of goods from the vessel stipulated in the contract of affreightment to another vessel before the place of destination named in the contract has been reached.  If done without legal excuse. CA. Outside of the residence of the owners . 2.726) 2. however competent and safe the vessel into which the transfer is made. surname and domicile of the captain. C. F. which amount.A. (ART.free alongside ship.USUAL FORMS OF CONSUMMATING CONTRACTS 1. insurance and freight. Forms: Public instrument Policy signed by the contracting parties and the broker taking part therein Private instrument (Art. Names. (Art. 2. . whether ordinary or maritime. 1. . and which is lost if the latter are lost. 1.cost and freight.free on board. 5. Obligation of the debtor conditioned only upon safe arrival of the security at the point of destination. Voyage during which the risk is run (Art. (ART.729) Note: Under existing laws. and 4.

which constitutes the true foundation of general average. the obligation of the borrower to pay is extinguished (Pandect of Commercial Law and Jurisprudence. Shipwreck AVERAGE  An extraordinary or accidental expense incurred during the voyage in order to preserve the cargo. 1997 ed. common danger. during the voyage designated.MARINE INSURANCE LOAN ON BOTTOMRY OR RESPONDENTIA Indemnity is paid in advance by way of a loan In case of loss of the vessel due to a marine peril. success. do not constitute general average. 1955) PARTICULAR OR SIMPLE GROSS OR GENERAL Definition Damages or expenses caused Damages or expenses to the vessel or cargo that did deliberately caused in order not inure to the common to save the vessel. 3. it is general average. (Art.  Expenses incurred to refloat a vessel. Gross or General Average  Where both vessel and cargo are saved. Jan. Arrival Under Stress 3.  Classes: 1. which accidentally ran aground. 811) Requisites 1. the obligation of the insurer becomes absolute Consensual contract Real contract Hypothecary Nature of Bottomry/ Respondentia GENERAL RULE: The obligation of the borrower to pay the loan is extinguished if the goods given as security are absolutely lost by reason of an accident of the sea. Concurrence of Marine Insurance and Loan on Bottomry/Respondentia 1. its cargo benefit. in order to continue its voyage. since a loan on bottomry partakes of the nature likewise of an insurance coverage to the extent of the loan accommodation. 4. EXCEPTIONS: 1. Loss due to the barratry on the part of the captain. deliberate sacrifice.) ACCIDENTS IN MARITIME COMMERCE 1. and deliberateness. 4. and not the voyage. 806)  The person whose property has been saved must contribute to reimburse the damage caused or expense incurred if the situation constitutes general average. 735) Note: If a vessel is hypothecated by bottomry only the excess is insurable. Justice Jose Vitug.No. L-6393. G. Not only is there absence of a marine peril. It is the safety of the property. 3. The value of what may be saved in case of shipwreck shall be divided between the lender and the insurer in proportion to the interest of each one. Loss due to inherent defect. Inc. Insurance Code) 2. 2. common safety factor. (Sec.R. Agan. The vessel was engaged in contraband. (Art. and if it is proven that the goods were on board. (A. The insurable interest of the owner of a ship hypothecated by bottomry is only the excess of the value over the amount secured by bottomry. Particular or Simple Average 2. and borne by or both from real and known respective owners. it is particular average. where only the vessel or only the cargo is saved. and to the cargo from the port of loading to the port of consignment. 809) risk. vessel or both. (Art. and all damages or deterioration suffered by the vessel from departure to the port of destination. The same rule would apply to the hypothecation of the cargo by respondentia. vs. (Art. proper formalities and Indemnity is paid after the loss has occurred In case of loss of the vessel due to a risk insured against. Magsaysay. Collision 4. 101. The cargo loaded on the vessel be different in from that agreed upon. 2. . Loss due to the fault or malice of the borrower. Averages 2. and 5. 31.

816) York-Antwerp (Y-A) Rules on Determining Liability for Averages With Regard To Deck Cargo 1. (ART. If deck cargo is loaded with the consent of the shipper on overseas trade. Fuel for the vessel if there is more than sufficient fuel for the voyage.  Order of goods to be cast overboard: 1. the vessel is exposed for many days to perils of the sea. the existence of the cargo on board should be proven by means of the bill of lading. Assembly and deliberation 2.855) 2.732).859) and lenders on bottomry and respondentia shall likewise contribute. 6.)  In order that the jettisoned goods may be included in the gross or general average. Number of interests involved Only one interest involved Several interests involved Share in the damage or expense 100% share In proportion to the value of the owner’s property saved Right to recover No reimbursement There may be reimbursement Kinds (not exclusive) Art. but should the same be jettisoned. it must always contribute to general average. Delivery of the minutes to the maritime judicial authority of the first port. 810) the occurrence of the average shall contribute to satisfy this average. 2. 812)  The insurers (Art. voyages are usually short and the seas are generally not rough. beginning with the one with greatest weight and smallest value. Ratification by captain under oath. Justice Jose Vitug. Goods not recorded in the books or records of the vessel. (Art. 3. Resolution of the captain 3. 811 Procedure for recovery 1. Entry of the resolution in the logbook 4. Detailed minutes 5. York-Antwerp Rule) Jettison  Act of throwing cargo overboard in order to lighten the vessel. DOMESTIC Deck cargo is allowed INTERNATIONAL Deck cargo is not allowed With shipper’s consent General average Particular average Without shipper’s consent Captain is liable Captain is liable ARRIVAL UNDER STRESS (ARRIBADA) . 813814) GOODS NOT COVERED BY GENERAL AVERAGE EVEN IF SACRIFICED 1.legal steps. (Art. Goods carried on deck. Deck cargo is allowed only in domestic/coastwise/inter-island shipping. (ART. and is prohibited in international/overseas/foreign shipping. it would not be entitled to reimbursement because there is violation of the Y-A Rules. (Art. 809 Art.  Reason: In domestic shipping. (Pandect of Commercial Law and Jurisprudence. If deck cargo is loaded with the consent of the shipper on coastwise shipping. Those which are below the upper deck. Liability The owner of the goods which All the persons having an gave rise to the expense or interest in the vessel and the suffered the damage shall bear cargo therein at the time of this average. 1997 ed.855 (2)) 3. Those which are on the deck. (Arts. (Art. preferring the heaviest one with the least utility and value. In overseas shipping. (Rule IX. within 24 hours from arrival. it must always contribute to general average and if jettisoned would be entitled to reimbursement. (Art. 815)  Jettisoned goods are not res nullius nor deemed “abandoned” within the meaning of civil law so as to be the object of occupation by salvage. 2.

negligence. even when the crew of the latter has received word to lift anchor. 8. or accidents of the sea disabling it to navigate. (Art. Lack of provisions due to negligence to carry according to usage and customs. However. lack of foresight or skill of captain. (Art. 7. (Smith Bell v. 3. if during the voyage the vessel cannot continue the trip to the port of destination. When lawful When unlawful Who expenses: bears COLLISION  Impact of two vessels both of which are moving. 2. Vessels must have “proper look-outs” or persons trained as such and who have no other duty aside therefrom. Captain should determine during the voyage if there is well founded fear of seizure. and 4. Allision  Impact between a moving vessel and a stationary one. . 821)  It is the duty of the captain to continue the voyage without delay after the cause of the arrival under stress has ceased failing in such duty renders him liable. unless it can be proved that there was no fault on its part. the fault is presumed to be imputable to the one who arrived later. 6. 819) 1. (Art. the steamship from the moment the sailing vessel is seen. the farther one must allow the nearer to enter first. The arrival of a vessel at the nearest and most convenient port instead of the port of destination. The sailing vessel is required to keep her course unless the circumstances require otherwise. shall watch with the highest diligence her course and movements so as to be able to adopt such timely means of precaution as will necessarily prevent the two boats from coming in contact. There is a presumption against a vessel which has no buoys to indicate the location of its anchors to prevent damage to vessels which may approach it. CA) Nautical Rules as to Sailing Vessel and Steamship 1. wellfounded fear of seizure. The vessel which leaves later is presumed to have collided against one which has left earlier. Captain shall assemble the officers and summon the persons interested in the cargo who may attend the meeting but without a right to vote. in case the cause has been risk of enemies. the smaller should give the right of way to the larger one. The agreement shall be drafted and the proper minutes shall be signed and entered in the log book. There is a presumption against an improperly moored vessel. Malice. Objections and protests shall likewise be entered in the minutes. Where a steamship and a sailing vessel are approaching each other from opposite directions. 2. When two vessels meet. The captain shall have the deciding vote. if they collide. 3. 5. there must first be an assembly before departure. privateers. 4. There is a presumption against the vessel which sets sail in the night. There is a presumption against the vessel with spread sails which collides with another which is at anchor and cannot move. A vessel leaving port should leave the way clear for another which may be entering the same port. 2. 825)  Steps: 1. 2. 5. pirates. When two vessels are about to enter a port. Nautical Rules to Determine Negligence 1. when there was not sufficient time to do so or there was fear of a greater damage or other legitimate reason. 820) The shipowner or ship agent is liable in case of unlawful arrival under stress. Risk of enemy not well known or manifest 3. (Art. The inability to continue voyage is due to lack of provisions. 4. Defect of vessel due to improper repair. privateers and other valid grounds. 9. But they shall not be liable for the damages caused by reason of a lawful arrival. or on intersecting lines. The officers shall determine and agree if there is well-founded reason after examining the circumstances.

827 of the Code of Commerce. if in the Philippines and to the Philippine consul. 826-839 of the Code of Commerce. Vessel at fault not known  Each vessel must bear its own loss. 3. unless a departure therefrom becomes necessary to avoid imminent danger. 612(8)). both vessels bear their respective damage. Insa Abdulhaman)  Doctrine of Last Clear Chance and Rule on Contributory Negligence cannot be applied in collision cases because of Art. but the shippers of both vessels may go against the shipowners who will be solidarily liable.. First zone – all time up to the moment when risk of collision begins. (Art. One vessel at fault  Vessel at fault is liable for damage caused to innocent vessel as well as damages suffered by the owners of cargo of both vessels. CA)  Even if the cause of action against the common carrier is based on quasi-delict. 624). (Notes and Cases on the Law on Transportation and Public Utilities. Where the vessel has gone through a hurricane or when the captain believes that the cargo has suffered damages or averages (Art. R. 612(15). 831) 5.  Error in Extremis . 2. Collision (Art. Both vessels at fault  Each vessel must bear its own loss. Third zone – time when collision is certain and time of impact. (Art. . if the collision took place abroad.  Who makes: Captain  When made: within 24 hours from the time the collision took place. (Urrutia and Co. 830)  The doctrine of res ipsa loquitur applies in case a moving vessel strikes a stationary object.  It is a written statement made under oath by the captain of a vessel after the occurrence of an accident or disaster in which the vessel or cargo is lost or damaged. Arrival under stress (Art. (Art. (Far Eastern Shipping v. & Hernando. v.) MARITIME PROTEST  Condition precedent or prerequisite to recovery of damages arising from collisions and other maritime accidents. T. 2. 2004 ed. Third vessel at fault  The third vessel will be liable for losses and damages. (Manila Steamship vs. 827) 3.Zones of Time in the Collision of Vessels 1. but the shippers of both vessels may go against the shipowners who will be solidarily liable. need not be protested. for the purpose of recovering losses and damages. (Art. It is in this period where conduct of the vessels is primordial. such as a bridge post. It is not a civil tort governed by the Civil Code but a maritime one governed by Arts. but both should be solidarily liable for damage to the cargo of both vessels. 835). It occurs when the vessel sustains injuries due to a marine peril rendering her incapable of navigation. or running against an object in sea or on the coast. and 2) on collision time. Even if such sudden movement is wrong.sudden movement made by a faultless vessel during the third zone of collision with another vessel which is at fault during the 2nd zone. 843). the defense of due diligence in the selection and supervision of employees is unavailing in case of a maritime tort resulting in collision. 836)  Cases applicable: 1. Shipwrecks (Arts.P. no responsibility will fall on said faultless vessel. Second zone – time between moment when risk of collision begins and moment it becomes a practical certainty. 828)  Doctrine of Inscrutable Fault – In case of collision where it cannot be determined which between the two vessels was at fault. 3. or navigational aid. 826) 2. Aquino. Baco River Plantation Co. (Art. Luzon Stevedoring vs. with respect to the circumstances attending such occurrence. (Art.  Before whom made: competent authority at the point of collision or at the first port of arrival. An error in this zone would no longer be legally consequential. 4. CA.  Excuses for not filing protest: 1) where the interested person is not on board the vessel. 4. 835) SHIPWRECK  It is the loss of the vessel at sea as a consequence of its grounding. Fortuitous event/force majeure  No liability. It is in this zone that vessels must strictly observe nautical rules. 26 PHIL 632) Cases Covered By Collision and Allision 1. dock. No rule is as yet applicable for none is necessary. (Art. Each bears its own loss.

Of Customs. Phil. Amount of carrier’s liability 2. Razon.  It can be applied in domestic sea transportation if agreed upon by the parties. can equally apply to shipwrecks. Similar to a warehouseman (Lua Kian v. (Commercial Law Review. 2004 ed.  Applicability: Overseas trade only. Notice of damage 3. 1749. the consignee must prove that the damage was due to the negligence and while the goods are in the custody of the arrastre operator. unless there is stipulation to the contrary. CARRIAGE OF GOODS BY SEA ACT/COGSA (C. inspection of the goods should be done at pier-side. CA) III. Comm. or to a barge. ICTSI v. 841)  The rules on collision or allision. seals the container and delivers it to the carrier for transportation. and the sealing of the container. the owner of the vessel may demand indemnity from said captain. (Commercial Law Review. (US Lines vs. (Hartford Fire Insurance v. (Art. Latent damage: shipper should file a claim with the carrier within three days from delivery. (Anglo-Fil Trading Corp. 150 SCRA 463)  Note that Art. Inc. Comm. (Clause paramount or paramount clause) IMPORTANT FEATURES: 1. overseas/international/foreign (from foreign port to Philippine port).)  Nature of business: It is a public utility. description and conditions of the cargo inside the container is the sole responsibility of the shipper. Prudential Guarantee)  The matter of quantity. 3(6))  Rules: a. the actual loading.  Liability: 1. Lazaro)  The loading on the ship of outgoing cargo is also part of stevedoring work. vs. Villanueva. Prescriptive period AMOUNT OF CARRIER’S LIABILITY  Under the Sec. Prince Line) 3. Water/maritime transportation. negligence or lack of skill of the captain. NOTICE OF DAMAGE (SEC. Patent damage: shipper should file a claim with the carrier immediately upon delivery b. 2.) STEVEDORING SERVICE  The carriage of goods from the warehouse or pier to the holds of the vessel. (Chief of Staff vs. discharging functions which are heavily invested with public interest. No. This is deemed incorporated in the bill of lading even if not mentioned in it. Similar to a common carrier (Northern Motors v. E. The unloading must be done by the arrastre operator. The carrier does not participate in the counting of the merchandise for loading into the container. CIR)  As understood in the port business. in case of pier-side unloading. as may be pertinent. SPECIAL CONCEPTS ARRASTRE SERVICE  A contract for the unloading of goods from a vessel. (Ibid. Manila Railroad) 2. for the carriage of goods. IAC. (Eastern Shipping vs. which will then deliver the cargo to the importer. (Bankers vs. If the wreck was due to malice. Solidary liability with the common carrier Note: In order that the arrastre operator may be held liable. Reyma Brokerage v.) CONTAINERIZATION/ “SAID-TO-CONTAIN”/ “SHIPPER’S LOAD AND COUNT” SYSTEM  System whereby the shipper loads his cargoes in a specially designed container. NCC applies to domestic/inter-island/coastwise trade. Home Assurance) Note: In order to attribute to the carrier any damage to the shipment that may be found.)  Significance: When a person brings in cargo from abroad. Of Customs. and 3. (US Lines v. in case of unloading at sea. C. the term consists of the handling of cargo from the hold of the ship to the dock. C. Note: The filing of a notice of claim is not a condition precedent. . Villanueva.A. the liability limit is set at $500 per package or customary freight unit unless the nature and value of such goods is declared by the shipper. 2004 ed. he cannot unload and deliver the cargo by himself. 65) APPLICABILITY  The transportation must be: 1. 4(5).

In such instance the. Successive carrier agreement 4. (Ang vs. baggage or goods. or disappeared in such a way that their existence is unknown or they cannot be recovered. Manila Railroad Co. 6 SCRA 180)  The one-year period shall run from delivery of the last package and is not suspended by extrajudicial demand. Co. Alejandro. Baggage check c. if there is an agreed stopping place within a territory subject to the sovereignty.. Maritime Co.  The WC shall also apply to fortuitous transportation by aircraft performed by an air transportation enterprise. vs. American Steamship Agencies Inc. 2.any transportation in which the place of departure and the place of destination are situated either: 1. Delay 3. 3[6])  “Loss or Damage” as applied to the COGSA contemplates a situation where no delivery at all was made by the shipper of the goods because the same had perished. gone out of commerce. Inc.  International transportation . or authority of the same High Contracting Party. The date when the goods should have been delivered (non-delivery). suzerainty.) and damage arising from delay or late delivery (Mitsui O.K. The express agreement of the parties (Universal Shipping Lines. or b. Within the territory of a single High Contracting Party.Inc. CA). 2.. vs. Mayer Steel Pipe Corp. and 3. vs. vs. or 2. vs. it is inapplicable in case of misdelivery or conversion. Lines Ltd. Nordeutscher Lloyd. Liability of the carrier for damages a. 188 SCRA 170) 2. IAC. 1 Sec. When public policy is contradicted.  The one-year prescriptive period is suspended by: 1. Inc.. Combined transportation agreement PASSENGER TICKET Passenger BAGGAGE CHECK Checked-in AIR WAYBILL Goods to be . Transportation documents a. whether it has been agreed upon under the form of a single contract or of a series of contracts. mandate. Air way bill 2. Thus. Loss or damage to baggage or goods c.PRESCRIPTIVE PERIOD  Action for loss or damage to the cargo should be brought within one year after: a. Am. (“round trip”. However. vs. CA) IV. Merchants Ins. if it has been regarded by the parties as a single operation. Air transportation. IMPORTANT CONCEPTS: 1.S. mandate or authority of another power. vs. it does not apply to the claim against the insurer for the insurance proceeds. The filing of an action in court until it is dismissed. (Fil. APPLICABILITY  The transportation must be: 1.SCRA 359)  The insurer exercising its right of subrogation is bound by the oneyear prescriptive period. Within the territories of two High Contracting Parties regardless of whether or not there be a break in the transportation or transshipment. International transportation. (Art. WARSAW CONVENTION OF 1929 (WC) PURPOSE: To protect the emerging air transportation industry and to secure the uniformity of recovery by the passengers. (Dole Phils. Civil Code rules on prescription shall apply. Jur. Carriage of passengers. even though that power is not a party to the Convention.3) WHEN INAPPLICABLE 1. (Union Carbide Phils. (Sec. (Stevens & Co. If the requirements under the Convention are not complied with. Jurisdiction 5.148 SCRA 118)  The one-year period shall run from delivery to the arrastre operator and not to the consignee. Delivery of the goods (delivered but damaged goods). Passenger ticket b. and it shall not lose its international character merely because one contract or a series of contracts is to be performed entirely within a territory subject to the sovereignty.)  Transportation to be performed by several successive air carriers shall be deemed to be one undivided transportation. Death or injury to passengers b.

or transshipment. Hand-carried baggage  $1000/passenger 4. Uy the two-year prescriptive period was not applied where the airline employed delaying tactics. (Art. where there was satisfactory evidence of malice or bad faith attributable to its officers and employees. Without the complaint. IAC. date of arrival at the destination b. Goods to be shipped GENERAL RULE: $20 per kilogram EXCEPTION: In case of special declaration of value and payment of a supplementary sum by consignor. (Art. 25)  Thus. (Alitalia vs. In case of delay. LIABILITY OF CARRIER FOR DAMAGES 1. IAC) 1. it could exculpate itself completely (Art. Death or injury of a passenger if the accident causing it took place on board the aircraft or in the course of its operations of embarking or disembarking. delivery. (Art. (Alitalia vs. 3. It does not regulate or exclude liability for other breaches of contract by the carrier. for the purpose of loading. Destruction. as amended by Guatemala Protocol. 1971. Delay in the transportation of passengers. in any place whatsoever. (Art. 18) and  Transportation by air – The period during which the baggage or goods are in the charge of the carrier. the action is barred except in case of fraud on the part of the carrier. date on which the transportation stopped. carrier is liable to not more than the declared sum unless it proves the sum is greater than actual value. 22. (Art. date of expected arrival c. 23)  Carrier is not entitled to the foregoing limit if the damage is caused by willful misconduct or default on its part. loss or damage to any baggage or goods. or as not restrictive of the carrier’s liability. 19) Note: The Hague Protocol amended the WC by removing the provision that if the airline took all necessary steps to avoid the damage. baggage or goods. Notice of claim  A written complaint must me made within: a. Alitalia vs. 29)  In United Airlines vs. It does not preclude the application of the Civil Code and other pertinent local laws. whether in an airport or on board an aircraft. in case of a landing outside an airport. the WC does not operate as an exclusive enumeration of the instances of an absolute limit of the extent of liability.  In KLM Royal v. IAC. the WC was applied as regards the limitation on the carrier’s liability. (Art. or. carrier is liable to not more than the declared sum unless it proves the sum is greater than actual value. Checked-in baggage GENERAL RULE: $20 per kilogram EXCEPTION: In case of special declaration of value and payment of a supplementary sum by consignor. if it took place during the “transportation by air”. there being a simple loss of baggage without any improper conduct on the part of the officials or employees of the airline or other special injury sustained by the passenger. the WC has invariably been held inapplicable. 20(1)). . (Alitalia vs. Passengers GENERAL RULE: $100. CA)  In PanAm v. 7 days from receipt of goods c. IAC) ACTION FOR DAMAGES 1. 3.000 per passenger EXCEPTION: Agreement to a higher limit 2. Prescriptive period  Action must be filed within 2 years from: a. 26) 2. or for some particular or exceptional type of damage. 17) 2. or misconduct of its employees. It includes any transportation by land or water outside an airport if such takes place in the performance of a contract for transportation by air. (Art. Tuller.baggage shipped  An agreement relieving the carrier from liability or fixing a lower limit is null and void. 14 days from receipt of baggage/goods  The complaint is a condition precedent. 192 SCRA 9) LIMIT OF LIABILITY (Art. 3 days from receipt of baggage b.

Northwest. (Art. 28(1) is a matter of jurisdiction rather than of venue. Passenger or consignor can file an action against the first carrier and the carrier in which the damage occurred b. 2. Court where it has a place of business through which the contract has been made.  These carriers are jointly and severally liable. 30)  A contract of international carriage by air. or d. although performed by different carriers under a series of airline tickets constitutes a single operation. (Art. (China Airlines vs. Carriage of baggage or goods a. (American Airlines vs. Chiok) JURISDICTION  At the option of the plaintiff. Members of the International Air Transportation Association (IATA) are under a general pool partnership agreement wherein they act as agent of each other in the issuance of tickets to contracted passengers to boost ticket sales worldwide and at the same time provide passengers easy access to airlines which are otherwise inaccessible in some parts of the world. c. Court of its principal place of business. Passenger or consignee can file an action against the last carrier and the carrier in which the damage occurred.  The forum of action provided in Art. b. the action for damages may be filed in the: a. Court of domicile of the carrier. Court of the place of destination.S. The obligation of the former remained and did not cease even when the breach occurred not on its own flight but on that of another airline which had undertaken to carry the passengers to one of their destinations.) .J. CA)  Under a general pool partnership agreement. 28(1)) NOTE: It is the passenger’s “ultimate destination” not “an agreed stopping place” that determines the country where suit is to be filed. EXCEPTION: Agreement or contract whereby the first carrier assumed liability for the whole journey. 2A C.RULE IN CASE OF VARIOUS SUCCESSIVE CARRIERS 1. the ticket-issuing airline is the principal in a contract of carriage while the endorsee-airline is the agent. (Santos III vs. Carriage of passengers GENERAL RULE: Action is filed only against the carrier in which the accident or delay occurred.

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