Contract of Transportation person obligates himself to

transport persons or property from one place to another for a

consideration.
Parties:
1. CARRIAGE OF PASSENGERS
Parties: common carrier & passenger
Passenger one who travels in a public conveyance by virtue
of contract, express or implied, with the carrier as to the
payment of fare or that which is accepted as an equivalent
thereof
2. CARRIAGE OF GOODS
Parties: shipper & carrier
Shipper the person who delivers the goods to the carrier for
transportation; pays the consideration or on whose behalf
payment is made
Consignee person to whom the goods are to be delivered.
May be the shipper himself or a third person who is not
actually a party to the contract
Contract of Carriage
real contract; not until the facilities of the carrier are
actually used can the carrier be said to have assumed the
obligation of the carrier; perfected by actual use.
2 types of contracts of carriage of PASSENGERS:
> contract to carry (agreement to carry the passenger at
some future date) consensual contract and perfected by
mere consent
> Contract of Carriage
real contract; not until the facilities of the carrier are
actually used can the carrier be said to have assumed the
obligation of the carrier; perfected by actual use
PERFECTION:
* AIRCRAFT perfected if it was established that the
passenger had checked in at the departure counter, passed
through customs and immigration, boarded the shuttle bus
and proceeded to the ramp of the aircraft and baggage
already loaded to the aircraft.

hold himself out as ready to engage in the

transportation of goods for persons generally as a
business and not as a casual occupation.
2. He must undertake to carry good of the kind to
which his business is confined.
3. He must undertake to carry by the method by which
his business is conducted and over his established
roads.
4. Transportation must be for hire.
CHARTER PARTY:
Contract by which an entire ship or some
principal part thereof is let by the owner to another
person for a specified time or use.
Q: EFFECT OF CHARTER PARTY
A: It may transform a common carrier into a private carrier.
However, it must be a bareboat or demise charter where the
charterer mans the vessel with his own people and becomes,
in effect, the owner for the voyage or service stipulated
Distinction between Common Carriers and Private
Carriers
COMMON CARRIER
PRIVATE CARRIER
Extraordinary diligence in the Ordinary diligence in the
vigilance over the goods they carriage of goods will suffice
carry
In case of loss, destruction, or No such presumption applies
deterioration of goods, they to
private
carriers,
for
are presumed to have been at whosoever alleges damage to
fault
or
to
have
acted or deterioration n of the goods
negligently; burden of proving carried has the onus of
otherwise rests on them
proving that the cause was the
negligence of the carrier
Cannot stipulate that it is May validly enter into such
exempt from liability for the stipulation
negligence of its agents or
employees
Factors to be considered whether a carrier is
common/private:

Law applicable

* Public Utility Bus or Jeepneys or Street Cars once it stops

it is in effect making a continuous offer to riders; perfected
when passenger is already attempting to board the vehicle
* TRAINS perfected when a person:
a. purchased a ticket/ possess sufficient fare with
which to pay for his passage
b. presented himself at the proper place and in a
proper manner to be transported
c. has a bona fide intention to use facilities of the
carrier
Perfection:
> contract to carry goods consensual
> contract of carriage - act of delivery of goods ( goods are
unconditionally placed in the possession and control of the
carrier and upon their receipt by the carrier for
transportation)
Common carriers (CC) (1732)

persons, corporations, firms or associations

engaged in the business of carrying or transporting
passengers or goods or both, by land, water, or air,
for compensation, offering their services to the
public. (NOT the means of transportation)

one that holds itself out as ready to engage in the

transportation of goods for hire as a public
employment and not as a casual occupation.
Tests for determining WON a party is a common
carrier of goods:
1. He must be engaged in the business of carrying
goods for others as a public employment, and must

Common Civil Code

Private contract

Diligence required
o
Common extraordinary diligence
o
Private diligence of a good father of a
family
Burden of proof in relation to negligence
o
Common the carrier
o
Private on the party having a claim
against the carrier

TOWAGE
A vessel is hired to bring another vessel to another
place
e.g. a tugboat may be hired by CC to bring the
vessel to a port (operator of tugboat not CC)
ARRASTRE
Arrastre operators functions has nothing to do with
the trade and business of navigation nor to the use
or operation of vessels
Services are not maritime
Functions of arrastre operator:
o
Receive, handle, care for, and deliver all
merchandise imported and exported, upon
or
passing
over
Government-owned
wharves and piers in the port
o
Record or check all merchandise which
may be delivered to said port ant shipside

Furnish light, and water services and other

incidental service in order to undertake its
arrastre service
Such service is in face, no different from those of a
depositary or warehouseman

passengers without encountering

any harm or loss.

STEVEDORING
involves the loading and unloading of coastwise
vessels calling at the port.
>>> Common carriers are public utilities, impressed with
public interest and concern subject to regulation by the
state.
REGISTERED OWNER RULE/REGISTRATION LAWS
The registered owner of a vehicle is liable
for any damage caused by the negligent operation
of the vehicle although the same was already sold
or conveyed to another person at the time of the
accident.
The registered owner is liable to the
injured party subject to his right of recourse against
the transferee or the buyer
Registered owner not liable if vehicle was
taken form him without his knowledge and consent
KABIT SYSTEM
arrangement whereby a person who has
been granted a certificate of public convenience allows
other persons who own motor vehicles to operate them
under his license, sometimes for a fee or percentage of
the earnings --- contrary to public policy (thus VOID and
INEXISTENT)
IN PARI DELICTO RULE
parties to the kabit system cannot invoke
the same as against each other either to enforce their
illegal agreement or to invoke the same to escape
liability --- pari delicto rule
having entered into an illegal contract,
neither can seek relief from the courts and each must
bear the consequences of his acts

CHAPTER 2
I. Obligations of the carrier
A.
-

DUTY TO ACCEPT
A common carrier granted a certificate of
public convenience is duty bound to accept
passengers or cargo without any discrimination.
It is illegal for domestic ship operators to
refuse to accept or carry passengers or cargo
without just cause. (Section 16, RA 9295)
B. DUTY TO DELIVER THE GOODS
a. Time of Delivery
i. Where a carrier has made an
express contract, the goods must
be delivered within a specified
time otherwise he is liable for any
delay (indemnity for damages).
ii. In the absence of any agreement,
goods must be delivered at its
destination within a reasonable
time (depending on the attending
circumstances, nature of the
goods; expected date of arrival in
the BOL may be considered).
iii. In the absence of a special
contract, a carrier is NOT an
insurer
against
delay
in
transportation of goods
C. DUTY TO EXERCISE EXTRAORDINARY DELIGENCE
i. Goods should be delivered in the
same condition that they were
received and to transport the

Grounds for Valid Refusal to Accept Goods

GR: common carriers cannot lawfully
decline to accept a particular class of goods
EXC: it appears that for some sufficient
reason the discrimination against the traffic in such
goods is reasonable and necessary:
i.
dangerous objects or substances
including dynamites and other explosives
ii.
goods are unfit for transportation
iii.
acceptance
would
result
in
overloading
iv.
contrabands or illegal goods
v.
goods injurious to health
vi.
goods
will
be
exposed
to
untoward danger like flood, capture by
enemies and the like
vii.
goods like livestock will be
exposed to diseases
viii.
strike
ix.
failure to tender goods on time
No compensation for refusal if it is because of:
1. government requisition of the space
2. substitution of equipment of lesser capacity when
required by operational and or safety and/or other
causes beyond the control of the carrier, and
3. if arrangements have been made for the passenger
to take another flight in a comparable air
transportation which will arrive not later than three
hours after the time of flight on which the confirmed
space is held is supposed to arrive. (Civil
Aeronautics Board Economic Regulation)
Article 358
Consequences/Effects of Delay
- Excusable delays in carriage suspend, but do not
generally terminate, the contract of carriage; when the
cause is removed, the master must proceed with the
voyage and make delivery.
- During the detention or delay, vessel continues to be
liable as a common carrier, not a warehouseman, and
remains duty bound to exercise extraordinary diligence.
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.
Carriage of Goods
- Due diligence should be exercised the moment
the goods are delivered to the carrier.
- Goods are deemed delivered to the carrier
when the goods are ready for and have been
placed in the exclusive possession, custody and
control of the carrier for the purpose of their
immediate transportation and the carrier has
accepted them

DEFENSES OF COMMON CARRIERS

1. Flood, storm, earthquake, lightning, or other natural
disaster or calamity
2. Act of the public enemy in war, whether international or
civil
3. Act or omission of the shipper or owner of the goods
4. The character of the goods or defects in the packing or
in the containers
5. Order or act of competent public authority
6. Exercise of extraordinary diligence
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
Fire not considered as a natural calamity or disaster
Fire caused by lightning a natural calamity
Hijacking does not fall under the categories of exempting
causes; the common carrier is presumed to be at fault or to
have acted negligently unless there is a proof of
extraordinary diligence on its part
Mechanical defects damage or injury resulting from
mechanical defects is not a damage or injury that was
caused by fortuitous event; carrier is liable to its passengers
for damages caused by mechanical defects of the
conveyance (breakage of a faulty drag-link spring, fracture of
the vehicles right steering knuckle, defective breaks) One of
the reason why carrier is made liable despite the presence of
mechanical defect is the absence of privity between the
passenger and the manufacturer
Tire-blowouts was not considered as fortuitous event
although it was alleged that the tires were in good condition;
no evidence was presented to show that the evidence were
due to adverse road conditions the carrier must prove all
angles.
Fortuitous Event to be a valid defense must be
established to be the proximate cause of the loss
Requisites of Fortuitous Event:
1. The cause of the unforeseen and the unexpected
occurrence, or of the failure of the debtor to comply
with his obligation,
must be independent of the
human will
2. It must be impossible to foresee the event which
constitutes the caso fortuito, or if it can be foreseen, it
must be impossible to avoid
3. The occurrence must be such as to render it
impossible for the debtor to fulfill his obligation in a
normal manner
4. The obligor (debtor) must be free from any
participation in or the aggravation of the injury
resulting to the creditor
PUBLIC ENEMY - Common carriers may be exempted from
responsibility only if the act of the public enemy has been
the proximate and only cause of the loss. Moreover, due
diligence must be exercised to prevent or at least minimize
the loss before, during and after the performance of
the act of the public enemy in order that the carrier may
be exempted from liability for the loss, destruction, or
deterioration of the goods.

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 by 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.
ORDER OF PUBLIC AUTHORITY- Art. 1743. If through the
order of public authority the goods are seized or destroyed,
the common carrier is not responsible, provided said
public authority had power to issue order.
DEFENSES IN THE CARRIAGE OF PASSENGERS:
1. Duty to take care of the passengers package
2. Duty to observe utmost diligence to passenger
3. Duty to accept passengers without discrimination
4. Duty to transport the passenger safely to the
agreed destination
5. Duty to seasonably bring the passenger to the
destination
PASSENGERS BAGGAGES
The term baggage has been defined to include
whatever articles a passenger usually takes with him
for his own personal use, comfort and convenience
W/N the baggage is in the personal custody of the
passenger.
if yes, hand carried baggage
if no, checked-in baggage
CARRIERS LIEN- If consignor or the consignee fails to pay
the consideration for the transportation of goods, the carrier
may exercise his lien
Assumption of Risk- Passengers must take such risks
incident to the mode of travel. Carriers are not insurers of
the lives of their passengers. Thus, in air travel, adverse
weather conditions or extreme climatic changes are some of
the perils involved in air travel, the consequence of which
the passenger must assume or expect

CHAPTER 3
RATIONALE:
A common carrier is bound to carry the passengers
safely as far a human care and foresight provide, using the
utmost diligence of very cautious persons, with due regard
for all circumstances.

EFFECT OF STIPULATION OF GOODS AND PASSENGERS

A. GOODS
The parties cannot stipulate that the carrier will NOT
exercise ANY diligence in the custody of goods
The law allows a stipulation whereby the carrier will
exercise a degree of diligence which is less than
extraordinary with respect to goods.
Provided:
1. In writing, signed by the shipper/owner;
2. Supported by a valuable consideration other than
the service rendered by the common carrier (Note:
Typically fare/freight); and
3. Reasonable, just and contrary to public policy.
B. PASSENGERS
- There can be no stipulation lessening the utmost diligence
that is owed to passengers
EXTRAORDINARY DILIGENCE IN CARRIAGE BY SEA

A. SEAWORTHINESS- Extraordinary diligence requires that the

ship which will transport the passengers and goods is
seaworthy.
B. OVERLOADING- Duty to exercise due diligence likewise
includes the duty to take passengers or cargoes that are
within the carrying capacity of the vessel.
C. PROPER STORAGE- The vessel itself may be suitable for
the cargo but this is not enough because the cargo must also
be properly stored.
D. NEGLIGENCE OF CAPTAIN AND CREW
1. Failure on the part of the
carrier
to
provide
competent captain and
crew
should
be
distinguished from the
negligence of the said
captain
and
crew,
because the latter is
covered by the Limited
Liability Rule (liability of
the shipowner may be
limited to the value of
the vessel).
2. If the negligence of the
captain and crew can be
traced to the fact that
they
are
really
incompetent, the Limited
Liability Rule cannot be
invoked
because
the
shipowner
may
be
deemed negligent
SEAWORTHINESS- is that strength, durability and
engineering skill made a part of a ships construction and
continued maintenance, together with a competent and
sufficient crew, which would withstand the vicissitudes and
dangers of the elements which might reasonably
be
expected or encountered during her voyage without loss or
damage to her particular cargo
General Test of Seaworthiness: Whether the ship and its
appurtenances are reasonably fit to perform the service
undertaken
CARGOWORTHY- The ship must be efficiently strong and
equipped to carry the particular kind of cargo which she has
contracted to carry and her cargo must be so loaded that it is
safe for her to proceed on her voyage.
PROPERLY MANNED- Captains, masters or patrons of
vessels must prove the skill, capacity, and qualifications
necessary to command and direct the vessel.
DEVIATION- If there is an agreement between the shipper
and the carrier as to the road over which the conveyance is
to be made (subject to the approval by the Maritime Industry
Authority), the carrier may not change the route, unless it be
by reason of force majeure. Without this cause, he shall be
liable for all the losses which the goods may suffer, aside
from paying the sum stipulated for that case.
TRANSHIPMENT- The act of taking cargo out of one ship
and loading it into another; to transfer 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.

It operates as a (1) RECEIPT (2) as a CONTRACT (3)

as a DOCUMENT OF TITLE.

KINDS of BILL of LADING:

1. Clean Bill
Does not contain any notation indicating
of Lading
any defect in the goods.
2. Foul Bill of
One that contains the abovementioned
Lading
notation.
3. Spent Bill
The goods are already delivered but the bill
of Lading
of lading was not yet returned (upon
delivery, the carrier is supposed to retrieve
the covering bill of the goods)
4. Through
Bill of Lading

5. On Board
Bill

6. Received
for
Shipment Bill

7.
Custody
Bill of Lading
8. Port Bill of
Lading

Issued by a carrier who is obliged to use the

facilities of other carriers as well as his own
facilities for the purpose of transporting the
goods from the city of the seller to the city
of the buyer, which BOL is honored by the
second and other interested carriers who
dont issue their own BOL.
-states that the goods have been received
on board the vessel which is to carry the
goods.
-apparently guarantees the certainty of
shipping as well as the seaworthiness of the
vessel to carry the goods.
-basically means that the goods are already
inside the vessel
-states that the goods have been received
for shipment with or without specifying the
vessel by which the goods are to be
shipped.
-issued when conditions are not normal and
there is insufficiency of shipping space.
The goods are already receied by the carrier
but the vessel indicated therein has not yet
arrived in the port.
The vessel indicated in the BOL that will
transport the goods is already in the port.

PROHIBITED AND LIMITING STIPULATION

1.
2.

3.
4.

Exempting the carrier from any and all liability for

loss or damage occasioned by its own negligence INVALID as it is contrary to public policy.
Parties may stipulate that the diligence to be
exercised by the carrier for the carriage of goods be
less than extraordinary diligence if it is:
a. in writing and signed by both parties
b. supported by a valuable consideration
other than the service rendered by the
common carrier
c.
the stipulation is just, reasonable and not
contrary to law.
Providing an unqualified limitation of such liability to
an agreed valuation - INVALID
Limiting the liability of the carrier to an agreed
valuation unless the shipper declares a higher value
and pays a higher rate of freight- VALID and
ENFORCEABLE.

ARTICLE 1745:

CHAPTER 4
BILL OF LADING-a written acknowledgement, signed by the
master of a vessel or other authorized agent of the carrier,
that he has received the described goods from the shipper,
to be transported on the expressed terms to be described
the place of destination, and to be delivered to the
designated consignees of the parties.

FIXING THE TIME OF RECOVERY OF DAMAGES FROM

CARRIER FOR CARRIAGE OF GOODS:
1. Inter-island - if goods arrived in damaged condition (Art.
366):
a. If damage is apparent, the shipper must file a claim
immediately (it may be oral or written);
b. If damage is not apparent, he should file a claim within 24
hours from delivery.

The filing of claim under either (1) or (2) is a condition

precedent for recovery.
If the claim is filed, but the carrier refuses to pay: enforce
carriers liability in court by filing a case:
a. within 6 year, if no bill of lading has been issued; or
b. within 10 years, if a bill of lading has been issued.
2. Overseas where goods arrived in a damaged condition
from a foreign port to a Philippine port of entry: (COGSA)
a. upon discharge of goods, if the damage is apparent, claim
should be filled immediately;
b. if damage is not apparent, claim should be filled within 3
days from delivery.

NOTICE OF CLAIM AND PRESCRIPTIVE PERIOD

A. Overland Transportation of Goods and Coastwise
Shipping
a) When to file a claim with carrier
Art. 366 constitutes a condition precedent to
the accrual of a right of action against a carrier
for damage caused to the merchandise.
Under Art. 366 of the Code of Commerce, an action for
damages is barred if the goods arrived in damaged
condition and no claim is filed by the shipper within
the following period:
1. Immediately if damage is apparent;
2. within twenty four (24) hours from delivery if
damage is not apparent.

Filing of claim is not a condition precedent, but an action

must be filed against the carrier within a period of 1 year
from discharge; if there is no delivery, the one-year period
starts to run from the day the vessel left port (in case of
undelivered or lost cargo), or from delivery to the arrastre (in
case of damaged cargo).
LIABILITY OF CARRIER FOR DAMAGES:
1. Death or injury of a passenger if the accident
causing it took place on board the aircraft or in the
course of its operations; (Art. 17)
2. Destruction, loss or damage to any luggage or
goods, if it took place during the carriage; (Art. 18)
and
3. Delay in the transportation of passengers, luggage
or goods. (Art. 19)
WARSAW CONVENTION of 1929WHEN APPLICABLE:
Applies to all international transportation of person,
baggage or goods performed by aircraft for hire.
WHEN NOT APPLICABLE:
1. If there is willful misconduct on the part of the
carriers employees.
The Convention does not
regulate, much less exempt, carrier from liability for
damages for violating the rights of its passengers
under the contract of carriage (PAL v. CA, 257
SCRA 33). --- if the damage is similarly caused by
any agent of the carrier acting within the scope of
his employment
2. when it contradicts public policy; if the requirements
under the Convention are not complied with.

The period does not begin to run until the consignee

has received possession of the merchandise that he
may exercise over it the ordinary control pertinent
to ownership.
This provision applies even to transportation by sea
within the Phils. or coastwise shipping.
Does NOT apply to misdelivery of goods.
b) Extinctive Prescription
six (6) years if there is no written contract (bill
of lading)
ten (10) years if there is written contract
This rule likewise applies to carriage of passengers for
domestic transportation.

B. International Carriage of Goods by Sea

A claim must be filed with the carrier within the

following period:
1. if the damage is apparent, the claim should be
filed immediately upon discharge of the goods; or
2. within 3 days from delivery, if damage is not
apparent.
Filing of claim is not condition precedent. Thus,
regardless of whether the notice of loss or damage has
been given, the shipper can still bring an action to
recover said loss or damage within one year after the
delivery of the goods or the date when the goods
should have been delivered

CHAPTER 5
Cause of action of a passenger and shipper:
a) against common carrier based on culpa contractual or
culpa aquiliana
b) on the part of the driver based on either culpa delictual
or culpa aquiliana
DISTICTION:
CULPA
CONTRACTUAL
V.
CULPA
AQUILIANA
- between obligation of extra-contractual and those which
arise from contract, rests upon the fact that in cases of noncontractual obligation it is the wrongful or negligent act or
omission itself which creates the vinculum juris, whereas in
contractual
relations
the
vinculum
(bond)
exists
independently of the breach of the voluntary duty assumed
by the parties when entering into the contractual relation.
CONCURRENT CAUSES OF ACTION
There is one action but several causes of action
The same act that breaches the contract may
also be tort
CONCURRENCE WITH 3RD PERSONS
If the negligence of third persons concurs with the breach,
the liability of the third person who was driving the vehicle
and/or his employer may be based on quasi delict. The driver
alone may be held criminally liable and civil liability may be
imposed upon him based on delict. In the latter case, the
employer is subsidiarily liable.
SOLIDARY LIABILITY

In case the negligence of the carriers driver and a

third person concurs, the liability of the parties
carrier and his driver, third person is joint and
several.

a) Prescription
Action for damages must be filed within a period of one
(1) year from discharge of the goods.
The period is not suspended by an extra-judicial
demand. (Why? Transportation of goods by sea should
be decided in as short a time as possible)
o
Case: Dole Philippines Inc. vs. Maritime
Company of the Philippines - the
prescriptive period is not tolled or
interrupted by a written extra-judicial
demand. Article 1155 is NOT applicable.
The period does not apply to conversion or misdelivery.
The one (1) year period refers to loss of goods and not
to misdelivery.
-

Damages arising from delay or late delivery are not

the damage or loss contemplated under the COGSA.
The goods are not actually lost or damaged. The
applicable period is ten (10) years.

Why does it not apply to misdelivery of goods?

A: In such cases (misdelivery), there can be no question of
claim for damages suffered by the goods while in transport,

since the claim for damages arises exclusively out of the

failure to make delivery.
DAMAGES is the pecuniary compensation, recompense or
satisfaction for an injury sustained, or as otherwise
expressed, the pecuniary consequences which the law
imposes for the breach of some duty or violation of some
rights.
KINDS OF DAMAGES

1.

the loss of what a person already possesses (dao

emergente);
2. the failure to receive as a benefit that would have
pertained to him (lucro cesante).
ATTORNEYS FEES
attorneys fees may be awarded in an action for
breach of contract of carriage You can be awarded
if you show that you were forced to litigate and
when you are entitled to exemplary damage.
But this award is subject to the discretion of the
court (you cannot dictate usually 10%-15%)

a) Actual or Compensatory Damages

only for the pecuniary loss suffered by him as he
has duly proved
not only the value of the loss suffered, but also that
of the profits which the obligee failed to obtain
b) Moral Damages
Includes physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation and similar
injury.
Subject to three conditions in transportation law:
o
Death
o
Malice or bad faith (must be done in the
performance of the contract of carriage)
o
Physical Injuries
Requisites:

FACTORS to consider that could affect the AMOUNT TO

BE RECOVERED:
o
The extent of humiliation may also
determine the amount of moral damages
that can be awarded
o
The extent of pain and suffering likewise
determines the award
o
Official, political, social and financial
standing of the offended party/business
and financial position of the offender affect
the amount of damages

There must be an injury, whether physical,

mental or psychological, clearly sustained
by the claimant

There must be a culpable act or omission

factually established

Maritime Law is the system of laws which particularly

relates to the affairs and business of the sea, to ships, their
crews and navigation and to marine conveyance of persons
and property

The wrongful act or omission of the

defendant is the proximate cause of the
injury sustained by the claimant

The award of damages is predicated on

any of the cases stated in Art. 2219.
c) Nominal Damages
It is adjudicated in order that the right of plaintiff may be
vindicated or recognized, and not for the purpose of
indemnifying the plaintiff for any loss suffered by him.
The award of nominal damages is also justified in the
absence of competent proof of the specific amounts of
actual damages suffered.
Cannot co-exist with actual damages.
d) Temperate or Moderate Damages
More than nominal but less than compensatory
damages.

may be recovered when the court finds that some

pecuniary loss has been suffered but its amount
cannot, from the nature of the case, be provided with
certainty.
cannot co-exist with actual damages
e) Liquidated Damages
Those agreed by the parties to a contract, to be
paid in case of breach thereof.
f) Exemplary or Corrective Damages
Requisites for the award of exemplary damages:
1. They may be imposed by way of example in
addition to compensatory damages, and only after
the claimants right to them has been established.
2. They cannot be recovered as a matter of right, their
determination depending upon the amount of
compensatory damages that may be awarded to the
claimant.
3. The act must be accompanied by bad faith or done
in wanton, fraudulent, oppressive or malevolent
manner.
o

KINDS OF ACTUAL DAMAGES:

The age of the claimant.

CHAPTER 6

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,
which is hypothecated for such obligations or which stands
as the guaranty for their settlement
Art. 837: civil liability incurred by the ship owner: liability
limited to value of the vessel + appurtenances + freightage
earned during voyage
Art. 643: vessel and cargo lost by reason of capture or
wreck: all rights shall be extinguished, both as regards the
crew to demand any wages whatsoever, and as regards the
ship agent to recover the advances made
If a portion of the vessel or of the cargo, or both,
should be saved, the crew engaged on wages, including the
captain, shall retain their rights on the salvage, so far as they
go, on the remainder of the vessel as well on the amount of
the freightage of the cargo saved; but sailors who are
engaged on shares shall not have any right whatsoever on
the salvage of the hull, but only the portion of the freightage
saved. If they should have worded to recover the remainder
of the shipwrecked vessel they shall be given from the
amount of the salvage an award in proportion of the efforts
made and to the risks encountered in order to accomplish
the salvage
Art. 587: ship agent may exempt himself of the civil
liabilities for the indemnities in favor of third persons by
abandoning vessel with all equipments and freight it earned
during voyage
Art. 590: co-owners civilly liable in proportion to their
interest and may exempt liability by abandonment of the
part of the vessel belonging to him
LIMITED LIABILITY RULE means that the liability of a
shipowner for damages in case of loss is limited to the value
of his vessel.

No vessel, no liability.

The civil liability for collision is merely co-existent

with the interest in the vessel; if there was total

loss, liability is also extinguished.
EXCEPTIONS TO THE LIMITED LIABILITY RULE
1. Where the injury or death to a passenger is due
either to the fault of the shipowner, or to the
concurring negligence of the shipowner and the
captain (NEGLIGENCE)
2. Where the vessel is insured (INSURANCE)
3. In the workmens compensation claims (WORKERS
COMPENSATION)
4. Expenses for repairs and provisioning of the ship
prior to the departure thereof
5. The vessel is not abandoned (ABANDONMENT)
Abandonment of the vessel, its appurtenances and the
freightage is an indispensable requirement before the
shipowner or ship agent can enjoy the benefits of the limited
liability rule. If the carrier does not want to abandon the
vessel, he is still liable even beyond the value of the vessel
PROTESTS
is 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
Required under the following cases:
1. When the vessel makes an arrival under stress
2. Where the vessel is shipwrecked
3. Where the vessel has gone through a hurricane or
the captain believe that the cargo has suffered
damages or averages
4. Maritime collisions
ADMIRALTY JURISDICTION (RTC)
Section 19 (3) of BP 129 as amended by RA 7691
(3) In all actions in admiralty and maritime
jurisdiction where the demand or claim
exceeds 300, 000 or in Metro manila, where
such demand or claim exceeds 400,000.
if less MTC

CHAPTER 7
VESSEL is defined under PD No. 447 as any barge, lighter,
bulk carrier, passenger ship freighter, tanker, container ship,
fishing boats, or other artificial contrivance utilizing any
source of motive power, designed use or capable of being
used as a means of transportation operating either as a
common carrier, including fishing vessels covered under PD
No. 43
KINDS OF VESSEL
Vessels are personal property- although occasionally
referred to as a peculiar kind of personal property
Vessels are considered personal property under the
Civil Law. The Code of Commerce likewise expressly
acknowledges the special nature of a vessel as
personal property
They are subject to mortgage agreeably to the
provisions of the Chattel Mortgage Law

Prescription OF VESSEL (Code of Commerce)

Article 573. Merchant vessels constitute property which
may be acquired and transferred by any of the means
recognized by law. The acquisition of a vessel must appear in
a written instrument, which shall not produce any effect with
respect to third persons if not inscribed in the registry of
vessels.
The ownership of a vessel shall likewise be acquired
by possession in good faith, continued for three
years, with a just title duly recorded.
In the absence of any of these requisites,
continuous possession for ten years shall be
necessary in order to acquire ownership.
A captain may not acquire by prescription the vessel
of which he is in command.
ACQUISITION OF VESSEL

Vessel may be acquired or transferred by any means

recognized by laws. Thus, vessel may be sold, donated
and may even be acquired through prescription.

Under the present laws, vessels that are under the

jurisdiction of MARINA can be transferred only with
notice to said administrative agency.