REVIEWER IN TRANSPORTATION LAW UNIVERSITY OF PANGASINAN
NOTES BY: JUDGE NOLI DIAZ
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
MARITIME LAW
CHARACTERISTIC
1. REAL
a. Similar to transactions over real
property with respect to effectivity
against third persons which is done
through registration
b. Evidence of real nature is shown by
(1) limitation of liability of agents to
actual value of the vessel and freight
money; and (2) right to retain cargo
and embargo and detention of vessel
2. HYPOTHECARY, Liability of
owner of vessel is limited to the value
of vessel (Doctrine of Limited
Liability)
DOCTRINE OF LIMITED LIABILITY
CHUA YEK HONG V. IAC
GR NO. L-74811
It has been held that by necessary
implication, the ship agent’s or shipowner’s
liability is confined to that which he is
entitled as of right to abandon – “the vessel
with all her equipment and the freight it may
have earned during the voyage” and “to the
insurance thereof if any” in other words, the
shipowner’s or agent’s liability is merely co-
extensive with his interest in the vessel such
that a total loss thereof results in its
extinction. “No vessel, no liability” expresses
in the nutshell the limited liability rule. The
total destruction of the vessel extinguishes
maritime liens as there is no longer any res to
which it can attach. The interest extends to:
1. Vessel itself
2. Equipment
3. Freightage
4. Insurance
EXCEPTIONS TO THE DOCTRINE OF
LIMITED LIABILITY
1. Where injury or damage is due to ship
owner’s fault
2. Vessel is insured
3. Claims under Workmen’s
Compensation
4. Expenses for repair on vessel before
loss
5. Vessel is not abandoned
6. Voyage is not maritime but only in a
river or gulf
ABANDONMENT
DIANE PENA
COLLEGE OF LAW
1. Indispensable requirement before the
shipowner or ship agent can enjoy the
benefits of the limited liability
principle. The only instance where
such abandonment is dispensed with
is when the vessel was entirely lost.
2. Only the ship owner and the ship
agent can make an abandonment
3. What may be abandoned – vessel
4. Instances:
a. Civil liability from
indemnities to third persons
(Art. 587 Code of Commerce)
b. Leakage of at least ¾ of
contents of cargo containing
liquids (Art. 687)
c. Constructive loss of vessel
(Sec. 138 Insurance Code) 
See notes on Overland
Transportation for right of
consignee to abandon goods
5. No procedure to be followed
6. No prescriptive period provided not
estopped from invoking the same or
do acts inconsistent with
abandonment
7. May be made to be exempted from
the following liabilities:
a. Civil liability to third persons
arising from the conduct of
the captain in the vigilance
over the goods
b. Proportionate contribution of
co-owners of the vessel to a
common fund for the results
of the acts of the captain
referred to in Art. 587 Code of
Commerce
c. Civil liability incurred by the
ship owner in case of collision
VESSEL
ADMIRALITY AND MARITIME
JURISDICTION OF A COURT
Under Sec. 19(3) of BP 129, as amended by
RA 7691, all actions in admiralty and
maritime jurisdiction where the claim
exceeds P300,000 or in Metro Manila,
exceeds P400,000 the RTC has jurisdiction.
TWO TEST TO DETERMINE
WHETHER A CASE INVOLVING A
CONTRACT COMES WITHIN THE
ADMIRALITY AND MARIITIME
JURISDICTION
1. Locational test
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REVIEWER IN TRANSPORTATION LAW
NOTES BY: JUDGE NOLI DIAZ
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
2. Subject matter test
NOTE: whether a contract is maritime
depends not on the place where the contract
is made and is to be executed, making the
locality the test but on the subject matter if
the contract, making the true criterion a
maritime service or a maritime transaction.
VESSEL DEFINED
Engaged in navigation, whether coastwise or
on the high seas, including floating docks,
pontoons, dredges, scows and any other
floating apparatus destined for the services of
the industry or maritime commerce.
Excluded are local and foreign military
vessels, bancas and other watercrafts of less
than 3 tons gross capacity and small
watercrafts engaged in river and bay traffic
OWNERSHIP
1. ACQUISTION
a. acquisition must appear in a
written instrument
b. which shall not produce any
effect to third persons if not
inscribed in the registry of
vessels and
c. shall be acquired by
possession in good faith,
continued for 3 years
d. With a just title duly recorded.
e. In the absence of any of
these, continuous possession
for 10 years shall be necessary
to acquire ownership.
2. SALE, If the 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 who make up its complement
for the same voyage 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
individuals who make up its
complement shall be for his account,
unless the contrary is stipulated in
either case.
3. REGISTRATION, through the
Maritime Industry Authority
PARTIES
DIANE PENA
UNIVERSITY OF PANGASINAN
COLLEGE OF LAW
1. Ship-owners and ship agents
2. Captains and masters of the vessel
3. Officers and crew of the vessel
4. Supercargoes
LIABILITIES OF THE SHIPOWNER
AND SHIP AGENTS: (JOINTLY AND
SEVERALLY)
1. Acts of the captain (Art. 618)
2. Contracts of the captain, whether
authorized or not, to repair, equip and
provision the vessel, provided that the
amount claimed was invested for the
benefit of the vessel (Art. 586)
3. Indemnities in favor of third persons
which may arise from the conduct of
the captain in the care of the goods
which the vessel carried, as well as
for the safety of the passengers
transported
4. Damages to the goods loaded on the
vessel without prejudice to their right
to free themselves from liability by
abandoning the vessel to the creditors
(Art. 587)
CAPTAINS AND MASTERS OF
VESSEL
NATURE OF POSITION
1. General agent of the ship-owner
2. Technical director of the vessel
3. Representative of the government of
the country under whose flag he
navigates
QUALIFICATIONS
1. Filipino citizen
2. Legal capacity to contract
3. Must have passed the required
physical and mental examinations
required for licensing him as such
(Art. 609)
SUPERCARGOES
Supercargo in maritime law is a person
especially employed by the owner of a cargo
to take charge of and sell to the best
advantage merchandise which has been
shipped, and to purchase returning cargoes
and to receive freight, as he may be
authorized.
CHARTER PARTY
CHARTER PARTY DEFINED
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REVIEWER IN TRANSPORTATION LAW UNIVERSITY OF PANGASINAN
NOTES BY: JUDGE NOLI DIAZ COLLEGE OF LAW
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
Contract by which an entire ship, or some Charterer Charterer is not
principal part thereof is let by the owner to regarded as owner regarded as owner
another person for a specified time or use for pro hac vice for
the conveyance of goods, in consideration of the voyage
the payment of freight Owner of vessel Owner retains
relinquishes possession, command
LEASE CHARTER possession, and navigation of the
PARTY command and ship
If for a definite Charterer may navigation to
period, lessee rescind charter party charterer
cannot give up lease by paying half of Common carrier Common carrier
by paying a portion freightage agreed becomes private remains as such
of the amount upon
agreed upon NOTE: Considering liability to third parties,
If the leased The new owner is a basic distinction is whether the charter os a
property is sold to not compelled to demise or bareboat charter, on the one hand,
one who knows of respect the charter or a time or voyage charter, on the other hand.
the existence of the party so long as he The vital distinction between a demise and
lease, the new can load the vessel other charter parties is whether the
owner must respect with his own cargo character is given the exclusive control of
the lease the vessel.

CLASSES TRANSHIPMENT DEFINED

1. BAREBOAT OR DEMISE It is the act of taking cargo out of one ship
CHARTER, charterer provides and loading it in another or the transfer of
crew, food and fuel. The charterer is goods from the vessel stipulated in the
liable as if he were the owner, except contract of affreightment to another vessel
when such arises from the before the place of destination named in the
unworthiness of the vessel. Owner contract has been reached or the transfer for
pro hac vice – a demise charterer, in further transportation from one ship or
spite of the fact that somebody else is conveyance to another. In other words, the
the owner of the vessel, is treated as fact of transshipment is not dependent upon
the owner of the chartered vessel, just the ownership of the transporting ships or
for that one particular purpose only. conveyances or in the change of carriers.
EFFECT: charterer assumes DEMURRAGE
customary rights and liabilities of the It is the compensation provided for in the
ship-owner to third persons and is contract of affreightment for the detention of
held liable for the expense of the the vessel beyond the time agreed on for
voyage and the wages of the seamen loading and unloading. Essentially,
2. CONTRACT OF demurrage is the claim for damages for
AFFREIGHTMENT, Owner leases failure to accept delivery.
the boat or part of it for the carriage
of goods PRIMAGE
a. TIME CHARTER – vessel is It is the amount stipulated on the charter party
chartered for a period of time or to be paid by the character or shipper as
duration of voyage compensation to the captain or master for his
b. VOYAGE OR TRIP CHARTER – particular care of goods
contract for hire of vessel for one or
series of voyages LAY DAY
Period when vessel will be delayed in the port
BAREBOAT/ AFFREIGHTMENT for loading and unloading
DEMISE
Charterer Owner remains liable DEADFREIGHT
becomes liable to as carrier and must Where the charterer failed to occupy the
others caused by answer for any breach leased portion of the vessel, he may thereby
its negligence of duty be made liable by the ship-owner

3
DIANE PENA
REVIEWER IN TRANSPORTATION LAW UNIVERSITY OF PANGASINAN
NOTES BY: JUDGE NOLI DIAZ COLLEGE OF LAW
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
LOANS OF BOTTOMRY AND 1. Borrows money for use, equipment or
RESPONDENTIA repair of vessel
2. For a definite term
INSTANCES WHEREIN BOTTOMRY 3. With extraordinary interest called
AND RESPONDENTIA IS REGARDED premium
AS SIMPLE LOAN 4. Secured by pledge of vessel or
1. Lender loaned an amount larger than portion thereof (in bottomry) or goods
the value of the object due to (respondentia)
fraudulent means employed by 5. Loan repayment depends or
borrower conditioned on the safe arrival of the
2. Full amount of the loan is not used for vessel (bottomry) or goods
the cargo or given on the goods if all (respondentia)
of them could not have been loaded, 6. Obligation to repay extinguished if
the balance will be considered a vessel is lost due to specific marine
simple loan (Art. 727) perils in the course or voyage within
3. If the effects on which the money is a limited time, or if pledged goods are
taken is not subjected to any risk lost

DISTINCTION BETWEEN FORMAL REQUIREMENTS

BOTTOMRY AND RESPONDENTIA 1. By means of public instrument
BOTTOMRY/ SIMPLE LOAN 2. Policy signed by the contracting
RESPONDENTIA parties and the broker taking part
The rate of interest The rate of interest therein
although beyond the is subject to the 3. Private instrument
lawful rate of interest said Law
is not subject to WHO MAY CONTRACT
Usury Law 1. BOTTOMRY
There must The existence of a a. Shipowner or ship agent
necessarily exist a marine risk or b. Captain if outside the
bona fide marine risk uncertainty of residence of the owners
transaction is not 2. RESPONDENTIA
necessary GENERAL RULE: only the owner
When the loan is The prior lender of the cargo
made during the has a right of EXPNS:
voyage, the last preference on the a. On the portion of the vessel he
lender has security over the owns, provided no money has
preference over the subsequent ones been previously borrowed on
previous one the whole vessel, nor exists
The contract must be It need not be in any other kind of lien or
reduced at least to writing obligation chargeable against
writing to give rise to her;
judicial action b. when he is permitted to do so,
The action The action he must necessarily state what
pertaining to the pertaining to the interest he has in the vessel
lender is lender is not ACCIDENTS
extinguished by the extinguished, the
absolute loss of the lender being 1. Averages
effects on which the reduced merely to 2. Arrivals Under Stress
loan is made unsecured creditor 3. Collisions
The loan should be Registration is not 4. Shipwrecks
recorded in the necessary
registry of the vessel MARITIME PROTEST
to be effective Written statement under oath, made by the
against third person master of a vessel, after the occurrence of an
accident or disaster in which the vessel or
COMMON REQUISITES cargo is lost or injured, with respect to the
circumstances attending such occurrence. It

4
DIANE PENA
REVIEWER IN TRANSPORTATION LAW UNIVERSITY OF PANGASINAN
NOTES BY: JUDGE NOLI DIAZ
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
is usually intended to show that the loss or
damage resulted from a peril of the sea, or
from some other cause for which neither
master nor owner was responsible, and
concludes with the protestation against any
liability of the owner for such loss or damage.
A MARITIME PROTEST IS REQUIRED
IN THE FOLLOWING
1. Arrival under stress;
2. Shipwreck;
3. Collision
4. In case the vessel has gone through a
hurricane or when the captain
believes that the cargo has suffered
damages
NOTES:
1. 1. A maritime protest should be made
when a vessel has gone through a
hurricane or the captain believes that
the cargo has suffered damage or
averages. It shall likewise be done if
the vessel having been wrecked, the
captain is saved alone or with part of
his crew, in which case, he shall
appear before the nearest authority
and make a sworn statement of the
facts.
2. The protest should be made within 24
hours following the arrival if the
vessel at the first port. Upon arrival at
the place of destination, the captain
shall ratify the protest within 24 hours
AVERAGE
THE FOLLOWING SHALL BE
CONSIDERED AVERAGES
1. All extraordinary or accidental
expenses which may be incurred
during the voyage for the preservation
of the vessel or cargo or both
2. All damages or deterioration which
the vessel may suffer from the time it
puts to sea at the port of departure
until it casts anchor at the port of
destination, and those suffered by the
merchandise from the time they are
loaded in the port of shipment until
they are unloaded in the port of their
consignment
AVERAGE SHALL BE:
1. SIMPLE AVERAGE,
expenses/damages caused to the
vessel/cargo not inured to common
DIANE PENA
COLLEGE OF LAW
benefit and profit of all the persons
interested in the vessel and her cargo;
borne by respective owners
2. GENERAL AVERAGE,
expenses/damages deliberately
caused in order to save the vessel, its
cargo or both from a real and known
risk
REQUISITES OF GENERAL
AVERAGE
1. Common danger present
2. Arising from accidents of sea,
disposition of authority
3. Peril imminent and ascertained
4. Part of vessel or cargo deliberately
sacrificed
5. Intended to save vessel and cargo or
both
6. Successful saving of vessel or cargo
7. Proper legal steps and authority
taken.
FORMALITIES TO INCUR GROSS
AVERAGE
1. There must be an assembly of the
sailing mate and other officers with
the captain including those with
interests in the cargo
2. There must be a resolution of the
captain
3. The resolution shall be entered in the
log book, with the reasons and
motives and the votes for and against
the resolution
4. The minutes shall be signed by the
parties
5. Within 24 hours upon arrival at the
first port the captain makes, he shall
deliver one copy of these minutes to
the maritime judicial authority there
at
ARRIVAL UNDER STRESS
An arrival of the vessel at a port not of
destination on account of
1. lack of provisions;
2. well-founded fear of seizure;
3. reason of accident of the sea disabling
it to navigate
INSTANCE WHEREIN IT IS
UNLAWFUL
1. Lack of provisions due to negligence
to carry according to usage and
customs
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REVIEWER IN TRANSPORTATION LAW
NOTES BY: JUDGE NOLI DIAZ
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
2. Risk of enemy not well known or
manifest
3. Defect of vessel due to improper
repair
4. Malice, negligence, lack of foresight
or skill of captain
WHO BEARS THE EXPENSES
1. The ship-owner or ship agent except
for damages caused by the shippers
by reason of a lawful arrival (Art.
821)
2. The captain shall be liable for
damages caused by his delay, if after
the cause of the arrival under stress
has ceased, he continues the voyage
(Art. 825)
PROCEDURES TO FOLLOW
1. Captain determines during the voyage
if there is well founded fear of
seizure, privateers and other valid
grounds
2. He shall then assemble the officers
3. He shall summon the persons
interested in the cargo who may be
present and who may attempt but
without right to vote
4. The officers determine and agree if
there is well founded reason after
examining the circumstances. The
captain shall have the deciding vote
5. The agreement shall be drafted and
the proper minutes shall be signed
and entered in the log book
6. Objections and protests shall likewise
entered in the minutes
COLLISSION
COLLISION V. ALLISION
COLLISION ALLISION
Impact of two Impact between a
vessels both of moving vessel and a
which are moving stationary one
CASES OF COLLISION
1. Due to the fault, negligence or lack of
skill of the captain, sailing mate or the
complement of the vessel - ship
owner liable for the losses and
damages (Culpable Fault)
2. Due to fortuitous event or force
majeure - each vessel and its cargo
shall bear its own damages
(Fortuitous)
DIANE PENA
UNIVERSITY OF PANGASINAN
COLLEGE OF LAW
3. It cannot be determined which of the
2 vessels caused the collision - each
vessel shall suffer its own damages,
and both shall be solidarily
responsible for the losses and
damages occasioned to their cargoes
(Inscrutable Fault)
ERROR IN EXTREMIS, where a
navigator, suddenly realizing that a collision
is imminent by no fault of his own, in
confusion and excitement of the moment,
does something which contributes to the
collision or omits to do something by which
the collision might be avoided, such act or
omission is ordinarily considered to be in
extremis and the ordinary rules of strict
accountability does not apply.
CASES COVERED IN COLLISION
1. ONE VESSEL AT FAULT, such
vessel is liable for damage caused to
innocent vessel as well as damages
suffered by the owners of cargo of
both vessels
2. BOTH VESSELS AT FAULT, each
vessel must bear its own loss, but the
shippers of both vessels may go
against the ship owners who will be
solidarily liable
3. VESSEL AT FAULT NOT
KNOWN DOCTRINE OF
“INSCRUTABLE FAULT”. In case
of collision where it cannot be
determined which between the two
vessels was at fault, both vessels bear
their respective damage, but both
should be solidarily liable for damage
to the cargo of both vessels.
4. THIRD VESSEL AT FAULT, same
rule as (1)
5. FORTUITOUS EVENT, each bears
its own loss
PRODECURES TO FOLLOW:
1. Protest should be made within 24
hours before the competent authority
at the point of collision or at the first
port of arrival, if in the Philippines
and to the Philippine consul, if the
collision took place abroad (Art. 835)
2. Injuries to persons and damage to
cargo of owners not on board on
collision time need not be protested
(Art. 836)
SHIPWRECK
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REVIEWER IN TRANSPORTATION LAW UNIVERSITY OF PANGASINAN
NOTES BY: JUDGE NOLI DIAZ COLLEGE OF LAW
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
SHIPWRECK, denotes all types of loss/ RULES ON SALVAGE AWARD
wreck of a vessel at sea either by being 1. Fixed by RTC in the absence of
swallowed up by the waves, by running agreement or where the latter is
against another vessel or thing at sea or on excessive
coast where the vessel is rendered incapable 2. If sold (no claim being made within 3
of navigation months from publication
a. Proceeds, after deducting
SALVAGE LAW expenses and the salvage
claim, shall go to the owner
SALVAGE DEFINED b. If he does not claim it within
3 years, 50% of the said
BLACKWALL V. SAUCELITO TUG proceeds shall go to the
COMPANY salvors, and the other half to
10 WALL. 1, 12 the government (Secs. 1112)
Compensation allowed to persons by whose 3. If a vessel is the salvor, the reward
voluntary assistance a ship at sea or her cargo shall be distributed as follows:
or both have been saved in whole or in part a. 50% to ship owner
from an impending or actual peril, b. 25% to captain c. 25% to
shipwrecks, derelicts or recapture officers and crew in
proportion to their salaries
DERELICT (Sec. 13)
Ship or her cargo which is abandoned and
deserted at sea by those who were in charge PERSONS WITHOUT RIGHT TO A
of it, without any hope of recovering it, or SALVAGE REWARD
without any intention of returning to it 1. Crew of the vessel saved
2. Persons who commenced salvage in
WHEN SHIP AND HER CARGO A FIT spite of opposition of the captain or
OBJECT OF SALVAGE? his representative
When a man finds property thus temporarily 3. Person who fails to deliver a salvaged
left to the mercy of the elements, whether vessel or cargo to the Collector of
from necessity or any other cause, though not Customs
finally abandoned and legally derelict, and he
takes possession of it with the intention of TOWAGE DEFINED
saving it for the owner, he will not be treated Contract whereby one vessel, usually
as trespasser. Thus, if he contributes motorized, pulls another from one place to
materially to the preservation of the property, another, for compensation. It is a contract for
he will entitle himself to a remuneration services rather than a contract of carriage.
according to the merits of his service as a
salvor DIFFERENCE BETWEEN SALVAGE
AND TOWAGE
CONCEPT OF SALVAGE REWARD SALVAGE TOWAGE
Governed by Governed by NCC
THE MAYFLOWER V. THE SABINE special law (Act on contract of lease
101 US 384 No. 2616
It is a reward given for perilous services,
Requires success, Success not
voluntarily rendered, and as an inducement to
otherwise no required
mariners to embarks in such dangerous
payment
enterprises to save the life and property
Must be done with Only the consent of
the consent of the the tugboat owner
REQUISITES FOR SALVAGE AWARD
captain/crewmen is needed
1. Valid object of salvage
Vessel must be Vessel need not be
2. Exposed to marine peril
involved in an involved in an
3. Voluntary salvage services
accident accident
4. Success in whole or in part, or that
Fees distributed Fees belong to the
services contributed to success
among crewmen tugboat owner

7
DIANE PENA
REVIEWER IN TRANSPORTATION LAW UNIVERSITY OF PANGASINAN
NOTES BY: JUDGE NOLI DIAZ
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
Salvor takes Tower has no
possession and may possessory lien;
retain possession only an action for
until paid sum of money
Court can reduce Court cannot
amount of change amount in
renumeration if towage even if
unconscionable unconscionable
BARRIOS V. GOTHONG AND CO.
GR NO. L-17192
If plaintiff’s service to defendant does not
constitute “salvage” within the purview of
the Salvage Law, can it be considered as a
quasi-contract of “towage” created in the
spirit of the New Civil Code. For consenting
to plaintiff’s offer to tow the vessel,
defendant thereby impliedly entered into a
juridical relation of “towage” with the owner
of the vessel. If the contract thus, created, in
this vessel, to the exclusion of the crew of the
vessel, may be entitled to remuneration and
as the owner, had expressly waived its claim
for compensation for the towage service
rendered to defendant, it is clear that
plaintiff., whose right if at all depends upon
and not separate from the interest of his
employee, is not entitled to payment for such
towage service.
CARRIAGE OF GOODS BY SEA ACT
(COMMONWEALTH ACT NO. 65)
REQUISITES
1. Contracts for carriage of goods
2. By sea
3. To and from Philippine ports
4. In foreign trade
IMPORTANT NOTES:
1. Shipper guarantees at time of
shipment the accuracy of marks,
number quantity and weight as
furnished by him. He shall indemnify
the carrier against all loss, damages
and expenses arising from
inaccuracies in such particulars
2. To recover loss or damage to cargo,
notice and general nature thereof in
writing must be given by the shipper
or consignee to the carrier or his agent
at the port of discharge or at the time
of removal of the goods:
a. If loss/damage not apparent –
within 3 days from delivery
DIANE PENA
COLLEGE OF LAW
b. May be endorsed upon receipt
for the goods given by the
person taking delivery thereof
c. Need not be given if the state
of goods at the time of their
receipt has been the subject of
joint inspection
PRESCRIPTIVE PERIOD
IF DAMAGE IS APPARENT
1. To give notice if loss or damage is
apparent
2. Notice in writing must be given to
carrier or agent at time of removal of
goods by persons entitled to delivery.
IF DAMAGE IS NOT APPARENT
1. To give notice if not apparent – within
3 days from delivery.
3. To bring suits – 1 year after delivery
or when goods should have been
delivered a suit must be filed
(whether notice of loss/damage is
given), otherwise prescribed.
4. Stipulation reducing the 1 year period
is null and void, but a written
agreement to suspend it is valid
(Maritime Company of the
Philippines vs. CA, 164 SCRA 593)
5. An extra-judicial demand does not
suspend the period
6. An insurer who is exercising its right
of subrogation is also bound by the 1-
year period (Fil. Merchants vs.
Alejandro 145 SCRA 42)
7. It does not apply to a claim against
the insurer for the insurance proceeds.
The claim against the insurer is based
on contract that expires in 10 years
(Mayer Steel Pipe Corp. vs. CA 274
SCRA 432)
8. If there is no delivery in case of
undelivered or lost cargo the one-year
period starts to run from the day the
vessel left port
9. When interrupted
DELIVERY TO WRONG PERSON
1. prescriptive period is 10 years
because there is a breach of contract,
or 4 years for quasi-delict (Ang v.
American SS Agencies (19 SCRA
631). Delay or late delivery are not
the damage or loss contemplated
under the COGSA. The goods are not
actually lost or damaged. The
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REVIEWER IN TRANSPORTATION LAW
NOTES BY: JUDGE NOLI DIAZ
LECTURED BY: ATTY. MICHAEL CAMILO G. DATARIO
applicable period is 10 years (Mitsui
vs. CA 287 SCRA 366)
LIABILITY UNDER COGSA
1. Maximum of $500 per package or, if
not shipped in packages, per
customary freight unit (e.g. metric
ton)
2. Nature and value of goods may be
declared by shipper and inserted in
bill of lading; declaration is prima
facie evidence and not conclusive on
carrier
3. Shipper and carrier may agree on
another maximum amount, but not
more than the amount of damage
actually sustained
NO LIABILITY UNDER COGSA
1. Nature or value of goods knowingly
and fraudulently misstated by shipper
2. Damage resulted from dangerous
nature of shipment loaded without
consent of carrier
3. Unseaworthiness not due to
negligence of carrier
4. Deviation was to save life or property
at sea
CERTIFICATE OF PUBLIC
CONVENIENCE
No public service shall operate without
having been issued a certificate of public
convenience (no franchise is required by law,
e.g. common carriers) or a certificate of
public convenience and necessity (a prior
franchise is required by law, e.g. telephone
and other services) (Sec. 15 Comm. Act 146)
LUQUE V. VILLEGAS
30 SCRA 408
The certificate constitutes neither a franchise
nor a contract, confers no property right, and
is a mere license or privilege. The holder of
said certificate does not acquire a property
right in the route covered thereby. Nor does
it confer any property right, interest or
interest in the public highways. Revocation
of this certificate deprives him of no vested
right. New and additional burdens, alteration
of the certificate, or even revocation or
annulment thereof is reserved to the State
DIANE PENA
UNIVERSITY OF PANGASINAN
COLLEGE OF LAW
COGEO CUBAO OPERATORS V. CA
207 SCRA 343
It is a “property” and has a considerable value
and can be the subject of sale or attachment
EXCEPTIONS
1. Warehouses
2. Animal drawn vehicles and bancas
moved by oar or sail; tugboats
3. Airships, except for the fixing of
maximum rates for fare and freight
4. Radio companies, except for rates
fixing
5. Public services owned or operated by
the government, except as to rates
fixing
6. Ice plants
7. Public markets
KMU V. GARCIA, JR.
239 SCRA 386
REQUIREMENTS FOR GRANTING
CERTIFICATE
1. Citizen of the Philippines, or a
corporation, etc. constituted and
organized under the laws of the
Philippines at least 60% of its stock or
paid-up capital must belong entirely
to citizens of the Philippines
2. Financially capable of undertaking
the proposed service
3. Proof of public necessity, interest and
convenience
GROUNDS FOR REVOCATION OF
CERTIFICATE
1. Where holder is a mere dummy
2. Where operator ceased operation and
placed his buses on storage
3. Where operator totally abandons the
service (Manzanal vs. Ausejo, 164
SCRA 36)
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