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A. D. AVILA | H. MORAA
A. D. AVILA | H. MORAA
B.DUTY TO EXERCISE EXTRAORDINARY DELIGENCE Goods should be delivered in the same condition that they were received and to transport the passengers without encountering any harm or loss. ARTICLE 1755. A common carrier is bound to carry the passengers safely as far as human care and foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the circumstances. (Civil Code) a. Presumption of Negligence Two conditions for the birth of the presumption of negligence: 1. there exists a contract between the passenger or the shipper and the common carrier 2. the loss, deterioration, injury or death took place during the existence of the contract Doctrine of Proximate Cause there is presumption of negligence If the goods are lost, destroyed or deteriorated, common carriers are presumed to have acted negligently, unless they prove that they observed extraordinary diligence. In case of death of or injuries to passengers, common carriers are presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary diligence. b. Duration of Duty (1) Carriage of Goods ARTICLE 1736. The extraordinary responsibility of the common carrier lasts from the time the goods are unconditionally placed in the possession of, and received by the carrier for transportation until the same are delivered,
b. OTHER INVALID DEFENSES 1. Damage to cargo due to EXPLOSION of another cargo not attributable to peril of the seas or accidents of navigation. 2. Damage by WORMS and RATS resulting to damage to cargoes cant be cited as an excuse by the carrier. 3. Damage by WATER through a port which had been left open or insufficiently fastened on sailing. 4. Carrier cannot escape liabilities to third persons if damage was caused by BARRATRY where the master or crew of the ship committed unlawful acts contrary to their duties includes theft and fraudulently running the ship ashore. Cases: 1. Problem: A carrier bus on its way to its destination encountered an engine failure, thus, it has to be repaired for 2 days. And while in the repair shop, a typhoon came resulting to the spoilage of cargoes. Answer: A typhoon although a natural disaster, is not a valid defense if it is shown that it was not the only cause of the loss. Especially when the facts indicate that the typhoon was foreseeable and could have been detected through the exercise of reasonable care. Cargoes should have been secured while the bus was being repaired for 2 days. 2. Problem: A passenger told the driver that he has valuable items in his bag which was placed under his feet and he asked the driver (to which he is seated near) to watch for the bag while he is asleep. (a) There have been incidents of throwing of stones at passing vehicles in the North Express Way. While the bus was traversing the super highway, a stone hurled from the overpass and hit the passenger resulting to injuries. Can the passenger hold the bus liable for damages? Answer: Yes. The incident was foreseeable due the prior incidents of stone hurling. The bus should have exercised utmost diligence and employed adequate precautionary
d. IMPROPER PACKING Character of the goods and defects in the packaging or in the containers are defenses available to the common carrier. Similarly, the Carriage of Good b Sea Act provides that carrier shall not liable for: (1) wastage in bulk or weight or any damages arising form the inherent defect, quality or vice of goods; (2) insufficiency of packing; (3) insufficiency or inadequacy of the marks, or (4) latent defects no discoverable by due diligence. However, NCC likewise provides: Art. 1742. Even if the loss, destruction, or deterioration of the goods should be caused by the character of the goods, or the faulty nature of the packing or the containers, the common carrier must exercise due diligence to forestall or lessen the loss. Thus, if the carrier accepted the goods knowing the fact of improper packing or even if the
- Primary defense of carrier is exercise of extraordinary diligence in transporting passengers. Even if there is a fortuitous event, the A. D. AVILA | H. MORAA
With respect to acts of strangers and other passengers resulting in injury to apassenger, the availability of such defense is also subject to the exercise of a carrier of due diligence to prevent or stop the act or omission. Negligence of the carrier need not be the sole cause of the damage or injury to the passenger or the goods. The carrier would still be liable even if the contractual breach concurs with the negligent act or omission of another person. G. PASSE GERS BAGGAGES Rules that are applicable to goods that are being shipped are also applicable to baggage delivered to the custody of the carrier. Arts. 1733. 1734 and 1736 of Civil Code are applicable. However, if the luggage was hand-carried, Arts. 1998, 2000-2003 shall apply. Art. 1998. The deposit of effects made by the travellers in hotels or inns shall also be regarded as necessary. The keepers of hotels or inns shall be responsible for them as depositaries, provided that notice was given to them, or to their employees, of the effects brought by the guests and that, on the part of the latter, they take the precautions which said hotel-keepers or their substitutes advised relative to the care and vigilance of their effects. (1783) Art. 2000. The responsibility referred to in the two preceding articles shall include the loss of, or injury to the personal property of the guests caused by the servants or employees of the keepers of hotels or inns as well as strangers; but not that which may proceed from any force majeure. The fact that travellers are constrained to rely on the vigilance of the keeper of the hotels or inns shall be considered in determining the degree of care required of him. (1784a) Art. 2001. The act of a thief or robber, who has entered the hotel is not deemed force majeure, unless it is done with the use of arms or through an irresistible force. (n) Art. 2002. The hotel-keeper is not liable for compensation if the loss is due to the acts of the A. D. AVILA | H. MORAA
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II. HOW DUTY IS COMPLIED WITH Common carrier binds itself to carry the passengers safely as far as human care and foresight can provide, using the utmost diligence of a very cautious person, with due regard for all the circumstances. - The duty even extends to the members of the crew or complement operating the carrier. A reasonable man or a good father of a family in the position of the carrier must exercise extraordinary diligence in the performance of his contractual obligation. - Whether or not a reasonable man, exercising extraordinary diligence, could have foreseen and prevented the damage or loss that occurred. III. EFFECT OF STIPULATION A. GOODS The law allows a stipulation whereby the carrier will exercise a degree of diligence which is less than extraordinary with respect to goods. Art. 1744. A stipulation between the common carrier and the shipper owner limiting the liability of the former for the loss, destruction, or deterioration of the goods to a degree less than extraordinary diligence shall be valid, provided it be: 1. In writing, signed by the shipper/owner; 2. Supported by a valuable consideration other than the service rendered by the
DILIGENCE
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a.) Warranty of Seaworthiness of Ship Extraordinary diligence requires that the ship which will transport the passengers and goods is seaworthy. Seaworthiness of the vessel is impliedly warranted. The carrier shall be bound before and at the beginning of the voyage to exercise due diligence to make the ship seaworthy. b.) No duty to inquire Because of the implied warranty of seaworthiness, shippers of goods, when transacting with common carriers, are not expected to inquire into the vessels seaworthiness, genuineness of its licenses and compliance with all maritime laws. Passengers cannot be expected to inquire everytime they board a common carrier, whether the carrier possesses the necessary papers or that all the carriers employees are qualified.
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VI. EXTRAORDINARY DILIGENCE IN CARRIAGE BY AIR The aircraft must be in such a condition that it must be able to withstand the rigors of flight. Airworthiness An aircraft, its engines propellers, and other components and accessories, are of proper design and construction, and are safe for air navigation purposes, such design and construction being consistent with accepted engineering practice and in accordance with aerodynamic laws and aircraft science. Proof of airworthiness is not by itself sufficient to prove exercise of extraordinary diligence. The fact that the flight was cancelled due to fortuitous event does not mean that the carriers duty already ended. The carrier is still obligated to A. D. AVILA | H. MORAA
A. CONDITION OF VEHICLE Common carriers that offer transportation by land are similarly required to make sure that the vehicles that they are using are in good order and condition. Rule on Mechanical Defects If the carriers will replace certain parts of the motor vehicle, they are
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EFFECTIVITY of BOL- upon its delivery to and acceptance by the shipper. The acceptance of the bill without dissent raises the presumption that all the terms therein were brought to the knowledge of the shipper and agreed to by him, and in the absence of fraud or mistake, he is stopped thereafter from denying that he assented to such claims. THE 3-FOLD LADI G ATURE OF THE BILL OF
I. RECEIPT- as comprehending all methods of transportation, a BOL may be defined as a written acknowledgement of the receipt of goods and an agreement to transport an to deliver them at a specified place to a person named or on his order. Other terms, shipping receipts, forwarders receipts, and receipts for transportation. (SC) the designation however is not material, and neither is the form of the instrument. If it contains an acknowledgement by the carrier of the receipt of goods for transportation it is, in legal effect a BOL. II. CONTRACT - it expresses the terms and conditions of the agreement between the parties; names the parties; includes consignees etc. It is the law between the parties bound by its terms and conditions. It is to be construed liberally in favor of the shipper who adhered to such bill as it is a contract of adhesion. The only participation of the party is the signing of his signature or his adhesion thereto. ART. 24 (NCC). In all contractual property or other relations, when one of the parties is at a disadvanatge on account of his moral dependence, ignorance indigence, mental weakness, tender age and other handicap, the court must be vigilant for his protection.
5. On Board Bill
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B. Kinds of Damages a) Actual or Compensatory Damages only for the pecuniary loss suffered by him as he has duly proved 2 Kinds: 1. the loss of what a person already possesses (dao emrgente); 2. the failure to receive as a benefit that would have pertained to him (lucro cesante). Damages may be recovered: Art. 2205 (Civil Code) 1) For loss or impairment of earning capacity in cases of temporary or permanent personal injury; 2) For injury to the plaintiffs business standing or commercial credit.
2) Attorneys fees - refer to Art. 2208 of the Civil Code - attorneys fees may be awarded in an action for breach of contract of carriage under par. 1,2,4,5,10 and 11 of Art. 2208. 3) Interests 12% per annum if it constitutes a loan or forbearance of money 6% per annum if it does not constitute loan or forbearance of money 12% - for final judgment
b) Moral Damages
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b. Insurance claims - Total loss of the vessel did not extinguish the liability of the carriers insurer; despite the loss of the vessel, its insurance answers for the damages that a ship owner or agent, may be held liable for by reason of the death of its passengers c. Workmens compensation - Even if the vessel was lost, the liability thereunder is still enforceable against the employer or ship owner Abandonment - Vessel, its appurtenances and the freightage - An indispensable requirement before the ship owner or ship agent can enjoy the benefits of the LLR - If the carrier does not want to abandon the vessel, then he is still liable even beyond the value of the vessel Procedure for Enforcement - In sinking of a vessel, the claimants or creditors are limited in their recovery to the remaining value of accessible assets - In case of a lost vessel, there are the insurance proceeds and pending freightage for the particular voyage - No claimant can be given precedence over the others by the simple expedience of having filed or completed its action earlier than the rest Protests - The written statement by the master of a vessel or any authorized officer, attested by proper officer or a notary, to the effect that damages has been suffered by the ship A. D. AVILA | H. MORAA
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a. Prescription - Acquisition of a vessel must appear in a written instrument, which shall not produce any effect with respect to third persons (Art. 573, Code of Commerce) - Ownership shall be acquired by possession in good faith, continued for three (3) years, with a just title duly recorded - In the absence of the aforementioned requisites, continuous possession for ten (10) years shall be necessary in order to acquire ownership. - A captain may not acquire by prescription the vessel which he is in command - Co-owners shall have the right of repurchase and redemption in sales made to strangers, but only within nine (9) days following the inscription of the sale in the registry, and by depositing the price at the same time b. Sale - Includes the rigging, masts, stores and engine of a steamer appurtenant thereto, which at the time belongs to the vendor - Arms, munitions of war, provisions and fuel shall not be considered as included in the sale - Obligation of the vendor to deliver to the purchaser a certified copy of the record sheet of the vessel in the registry up to the date of the sale - If alienation of the vessel should be made while it is on a voyage, the freightage which it earns from the time it receives its last cargo shall pertain entirely to the purchaser, and the payment of the crew and other persons shall be for his account - If the sale is made after the vessel has arrived at the port of its destination, the freightage shall pertain to the vendor, and the payment of the crew and other persons shall be for his account, unless contrary is stipulated REGISTRATION
OWNERSHIP Acquisition - Vessels may be acquired or transferred by any means recognized by law; may be sold, donated and may even be acquired through prescription
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SHIPS MANIFEST - Vessels are required to carry manifests in coastwise trade - Tariff and Customs Code: manifests shall be required for cargo and passengers transported from one place or port in the Philippines to another only when one or both of such places is a port of entry Manifest - a declaration of the entire cargo - object is to furnish customs officers with a list to check against, to inform the revenue officers what goods are being brought into a port of the country on a vessel - hence, the requirement that a vessel must carry a manifest is not complied with even if a bill of lading can be presented. - Bill of lading is just a declaration of a specific cargo, rather than the entire cargo - It is issued as a matter of convenience by virtue of a contract
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otes on Transportation Law CHAPTER 8 PERSO S WHO TAKE PART I MARITIME COMMERCE
SHIPOWNERS AND SHIP AGENTS Shipowner - the person who is primarily liable for damages sustained in the operation of vessel - evident intent to place the primary responsibility on the owner of the vessel - naviero construed to include the shipowner, ship agent and even the character who is considered as owner pro hac vice Ship agent - the person entrusted with provisioning of the vessel, or who represents her in the port in which she happens to be - ship agent is jointly and severally liable with the owner, applies both for breach of contract and extra-contractual obligation such as tort - even though not the owner, is liable in every way to the creditor for losses and damages, without prejudice to his right against the owner, the vessel and its equipment and freight, subject to the LLR the shipowner and ship agent shall be civilly liable for the acts of the captain and for obligations contracted by the latter to repair, equip, and provision the vessel ship agent shall also be civilly liable for the indemnities in favor of third persons which may arise from the conduct of the captain in the care of the goods which he loaded on the vessel; but he may exempt himself through abandonment neither the shipowner or the ship agent shall be liable for the obligations contracted by the captain, if the latter exceeds the powers and privileges pertaining to him if the amounts claimed were invested for the benefit of the vessel, the responsibility therefor shll devolve upon its owner or agent Part Owners - a partnership shall be presumed as established by the co-owners - if not more than two, decision of the member having controlling interest - more than two, proportionately - a vessel may not be detained, attached or levied upon in execution in its entirety for the private debts of a part owner - the co-owners of a vessel shall be civilly liable in the proportion of their interest in the common fund, for the results of the acts of the captain - each co-owner may exempt himself from liability by abandonment - all part owners shall be liable, in proportion to their respective ownership, for the expenses for repairing the vessel - the sale of the vessel must be made at public auction, unless the co-owners stipulate SHIP AGENT - whether the owner or a manager for an owner or for an association of co-owners, must have the capacity to trade and must be recorded in the merchants registry of the province - shall represent the ownership of the vessel - may, in his own name, and in such capacity, take judicial and extrajudicial steps in matters relating to commerce A. Powers - May discharge the duties of the captain of the vessel, subject to Art. 609(qualifications) - Shall designate and come to terms with the captain - shall contract in the name of the owners, who shall be bound in all that refer to repairs, details of equipment, armament, provisions of food and fuel, and freight of the vessel, and in general, in all that relates to the requirements of navigation B. Limitation on Power - May not order a new voyage, or make contracts for a new charter, or insure the vessel, without the authorization of its A. D. AVILA | H. MORAA
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C. Duty to Account - If managing for an association, he shall render an account of the results of each voyage of the vessel D. Reimbursement and Liabilities - Co-owners shall pay the expenses in proportion to their interest - In order to enforce the payment, the managing agent shall be entitled to an executor action (accion ejecutiva) - Shall indemnify the captain for all the expenses he may have incurred with funds of his own or of others, for the benefit of the vessel E. Discharge of Captain and Crew - Subject to the provisions of the Labor Code and rules promulgated by POEA - Before the vessel sets out to sea, the ship agent may, at his discretion, discharge the captain and members of the crew whose contracts are not for a definite period or voyage - In case of voluntary sale of the vessel, all contracts between the ship agent and the captain shall terminate, reserving to the latter his right to the indemnity which may pertain to him CAPTAINS AND MASTERS OF VESSELS - The name of captain or master is given, according to the kind of vessel, to the person in charge of it - The first denomination is applied to those who govern vessels that navigate the high seas or ships of large dimensions and importance, although they be engaged in the coastwise trade - Masters are those who command smaller ships engaged exclusively in the coast wise trade - For the purpose of maritime commerce, captain and master have the same
Qualifications (Captains, masters or patrons of vessel) 1. Must be Filipinos 2. Have legal capacity to contract 3. Prove the skill, capacity and qualifications necessary to command and direct the vessel 4. Must not be disqualified for the discharge of the duties of the position 5. if the owner of the vessel desires to be the captain, without having the legal qualifications, he shall limit himself to the financial administration of the vessel, and intrust navigation to a person possessing the qualifications Powers and Functions - A master or captain is one who has command of a vessel - A captain commonly performs three distinct roles: 1. He is a general agent of the shipowner (operation and preservation of the vessel during its voyage and the protection of the passengers, crew and cargo) 2. He is also commander and technical director of the vessel (authority to sign bills of lading, carry goods aboard and deal with the freight earned, agree upon rates and decide whether to take the cargo; authority to enter into contracts with respect to the vessel and the trading of the vessel) 3. He is a representative of the country under whose flag he navigates A. D. AVILA | H. MORAA
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Pilot and his Association - The fact that the pilot is a member of an association does not make the association jointly and severally liable. - Art 2180 of the NCC does not apply because there is no employee-employer relationship OFFICERS AND CREW OF VESSELS Art. 648, Code of Commerce: the complement of a vessel shall be understood all the persons on board, from the captain to the cabin boy, necessary for the management, maneuvers, and service - therefore, the complement shall include the crew, the sailing mates, engineers, stokers and other employees on board not having specific designations - it shall not include the passengers or the persons whom the vessel is transporting Minimum Safe Manning - it is required that there is sufficient number of officers and crew that are serving in the vessel Supercargoes - shall discharge on board the vessel the administrative duties which the ship agent or the shippers may have assigned to them - shall keep an account and record of their transactions in a book - the powers and responsibilities of the captain shall cease, when there is a supercargo
Shipowner and Pilot - Pilot is personally liable for damages caused by his own negligence or default to the owners of the vessel, and to third parties for damages sustained in a collision; constitutes maritime tort - In case of collision, the colliding vessel is prima facie responsible, hence, the burden of proof is upon the party claiming benefit of the exemption from liability. - It must be shown affirmatively that the pilot was at fault and that there was no fault on the part of the officers or crew, which might have been conducive to the damage - The fact that the law compelled the master to take the pilot does not exonerate the vessel from liability - Parties injured are not under necessity to look to the pilot from whom redress is not always had for compensation - The owners of the vessel are responsible to the injured party for the acts of the pilot, and they must be left to recover the amount as well as they can against him - It cannot be maintained that the circumstance of having a pilot on board, and acting in conformity to his directions operate as a discharge or responsibility of the owners - Except insofar as their liability is limited or exempted by statute, the vessel or her owner are liable for all damages caused by the negligence or other wrongs of the owners or those in charge of the vessel
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II.
IV. -
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V.
REQUISITES OF A VALID CHARTER PARTY - Governed by the general principles on ordinary contracts 1. Consent of the contracting parties 2. An existing vessel which should be placed at the disposition of the shipper 3. The freight 4. Compliance with the requirements of Art. 562 of the Code of Commerce
Art. 562, Code of Commerce: a. Must be drawn in duplicate and signed by the contracting parties b. Kind, name, tonnage of vessel c. Flag and port of registry d. Name and domicile of the captain and of the ship agent e. Port of loading and unloading f. Capacity, number of tons or weight, or measurement of the things to load g. The freight to be paid
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DEMURRAGE AND DEADFREIGHT Lay days: time for loading and unloading; provided for in the Charter Party A. D. AVILA | H. MORAA
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A. Shipowner or Captain 1. The shipowner is bound to observe a margin greater than two percent between that represented and her actual capacity which is not allowable 2. Any loss incurred by a shipper whose cargo is refused on account of the receipts by the shipowner of a greater amount of cargo belonging to other persons shall be for account of the shipowner in the form of indemnity; freight may be reduced instead of rescission 3. If there should be several charter parties and not all could be accommodated, preference shall be given to the persons who is first in loading his cargo, and the others shall have preference in the order of the dates of their charter; in the absence of priority, in proportion to the amounts of weight or space that they may have contracted 4. The shipowner may effect a substitution with respect to the vessel which had been initially chartered with that of another
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II.
Bottomry or Respondentia The rate of interest is not subject to the Usury Law on account of the extraordinary risks
Simple loan The rate of interest must not exceed the ceiling fixed by the Usury Law
Instance where the loan on bottomry and respondentia may be regarded as simple loan only 1. if lender loaned an amount which is larger than the value of the object liable for the bottomry loan due to fraudulent means employed by the borrower, the loan shall be valid only for the amount at which the object is appraised by experts, and the surplus principal shall be repaid as if it were a simple loan, with legal interest thereon 2. if the full amount of the loan which is contracted in order to load the vessel is not used for the cargo, or given on the goods if all of them could not have been loaded, the balance will be considered as simple loan to forestall the possibility of other contracts which differ in nature from being included under the name of the bottomry loan
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B. By Whom Borne - the owner of the goods that suffered the damage bears the loss since it does not inure to the common benefit - res perit domino - if the vessel or goods are hypothecated by a loan on bottomry or respondentia, the
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V.
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Applicable Law in Collision: Liability for negligence in the absence of contract is governed by Art. 2176, NCC quasi-delict. > The liabilities of shipowners/agents as well as the captain or crew is still governed by the provision of the Code of Commerce on Collision. Rules on Liability: Liability in collision cases are negligence based. Thus, even if liability with respect to collision is not governed by quasi-delict, courts are called upon to determine the negligence of the persons involved in order to impose liability. > Liability of the person causing the injury: criminal and civil > Test in determining negligence: the test of a reasonable man in the position of an expert that applies in quasi-delict should also be applied although with due consideration to the expertise of the persons involved including the carrier itself, the captain, officers and crew of the vessels. i. Test: Whether a reasonable man with same expertise would have done what the party in question did under the same circumstances (forseeable or not forseeable). ii. BUT REMEMBER, some rules that apply to quasi-delict cannot be applied in collision cases. E.g. doctrine of last clear chance and the rule on contributory negligence cannot be applied. REASON: Art. 827. If collision is imputable to both vessels, each one shall suffer its own damages, and both shall be solidarily responsible for the losses and damages occasioned to their cargoes. > It does not matter if one vessel has the last clear chance or that the other A. D. AVILA | H. MORAA
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Doctrine of Inscrutable Fault: Where fault is established but it cannot be determined which of the two vessels were at fault, both shall be deemed to have been at fault. Requirements for Action to Recover Losses and Damages arising from Collisions: 1. There must be a protest or declaration; 2. The protest or declaration must be presented within 24 hours; 3. The protest or declaration must be presented before a competent authority: a. If collision occurred in Philippine territory: competent authority of the i) point where the collision took place or ii) that of the first port of arrival of the vessel; b. If collision occurred in a foreign country: consul of the Philippines PROTEST (Maritime Protest) written statement by the master of the vessel or any authorized officer, attested by proper officer or a notary, to the effect that damages has been suffered by the ship. > It is required in the following cases: a) Arrival under stress b) Vessel is shipwrecked c) Vessel has gone through a hurricane or the captain believes that the cargo has suffered damages or averages d) Maritime collisions > The absence of protest, with respect to damages caused to persons or to the cargo, may not prejudice the persons interested who were not on A. D. AVILA | H. MORAA
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FACTS: At about 10 o'clock at night, the coastwise Isabel, equipped with motor and sails, left the port of Manila with primary destination to Balayan, Batangas, carrying, among its cargo, 911 sacks of rice belonging to the plaintiff and consigned to points in the south. After the boat had been under weigh for about four hours, and has passed the San Nicolas Light near the entrance into Manila Bay, the watch and the mate on the
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ISSUE: Whether or not the accident occurred through the negligence of the bohol only, or whether both launches can be blamed for the collision. RULING: Negligence on the part of the bohol is demonstrated by the following: 1) The patron of the bohol gave the whistle which indicated that the Active had a clear way and should pass to the starboard, and did not give four blasts of the whistle in quick succession in order to denote danger. 2) The two scows in tow by the bohol were apparently not properly fastened together, as required by section 197 of the Philippine Marine Regulations. 3) The two launches passed each other under the bridge of Spain, and the bohol, instead of steering so as to avoid danger of a collision between the Active and its scows, kept its course and crowded the Active most against a buoy. While, in accordance with paragraph 163 of the Philippine Marine Regulations, steam vessels towing have the right of way over steam vessels not towing this does not mean that the vessel with a tow can usurp the entire river so as to force another vessel into the bank. In conformity with the doctrine cited by appellant, that the preferred steamer will not be held in fault for maintaining her course and speed, this is only true so long as it is possible for the other vessel to avoid her by the proper maneuver. As opposed to the foregoing, we find that the plaintiff's agent was in no way to blame for the collision. Smith Bell & Co. and Tokyo Marine & Fire Insurance Co. v. CA FACTS: In the early morning of 3 May 1970-at exactly 0350 hours, on the approaches to the port of Manila near Caballo Island, a collision took place between the M/V "Don Carlos," an interisland vessel owned and operated by private respondent Carlos A. Go Thong and Company ("Go Thong"), and the M/S "Yotai Maru," a merchant vessel of Japanese registry. The "Don Carlos" was then sailing south bound leaving the port of Manila for Cebu, while the "Yotai Maru" was approaching the port of Manila, coming in from Kobe, Japan. The bow of the "Don Carlos" A. D. AVILA | H. MORAA
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14.5.1. Principal circumstances to be considered in fixing the amount of compensation: 1. The labor expended by the salvors in rendering the salvage service; 2. The promptitude, skill, and energy displayed in rendering the service and saving the property; 3. The value of the property employed by the salvors in rendering the service, and the danger to which such property was exposed; 4. The risk incurred by the salvors in rescuing the property from the impending peril; 5. The value of the property salved; and 6. The degree of danger from which the property was rescued. 14.5.1.2. Principal circumstances to be considered in fixing the amount of compensation under Section 10, Salvage Law: 1. The expenditures made to recover or save the vessel or the cargo or both 2. The zeal demonstrated 3. The time employed, the services rendered 4. The excessive express occasioned the number of persons who aided 5. The danger to which they and their vessels were exposed as well as that which menaced the things recovered or salvaged 6. The value of such things after deducting the expenses. 14.6. Rights and Obligations of Salvors and Owners The salvor is entitled to compensation for services rendered, and the enforcement of that right, he has a lien upon the property salvaged whereby he has the right of retention over the property until he is paid. o The salvor is to all intents and purposes, a joint owner and if the property is lost he must bear his share like the other joint owners. If the ship and its cargo are saved together by the salvor, the salvage allowance should be charged against the ship and cargo in the proportion of their respective values, as in the A. D. AVILA | H. MORAA
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