99404181 Common Carriers Codal

8/23/2019 99404181 Common Carriers Codal

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COMMON CARRIERS IN GENERAL

Art. 1732, NCC. Common carriers are persons, corporations, firmsor associations engaged in the business of carrying or transportingpassengers or goods or both, by land, water, or air, forcompensation, offering their services to the public.

Art. 1765, NCC. The Public Service Commission may, on its ownmotion or on petition of any interested party, after due hearing,cancel the certificate of public convenience granted to anycommon carrier that repeatedly fails to comply with his or its duty

to observe extraordinary diligence as prescribed in this Section.

Art. 1733, NCC. Common carriers, from the nature of theirbusiness and for reasons of public policy, are bound to observeextraordinary diligence in the vigilance over the goods and for thesafety of the passengers transported by them, according to all thecircumstances of each case.

Such extraordinary diligence in the vigilance over the goods is

further expressed in Articles 1734, 1735, and 1746, Nos. 5, 6, and7, while the extraordinary diligence for the safety of the

passengers is further set forth in Articles 1755 and 1756.

Art. 1753, NCC. The law of the country to which the goods are tobe transported shall govern the liability of the common carrier for

their loss, destruction or deterioration.

Art. 1766, NCC. In all matters not regulated by this Code, therights and obligations of common carriers shall be governed by theCode of Commerce and by special laws.

COMMON CARRIER OF GOODS

Art. 1733, NCC. Common carriers, from the nature of theirbusiness and for reasons of public policy, are bound to observeextraordinary diligence in the vigilance over the goods and for thesafety of the passengers transported by them, according to all thecircumstances of each case.

Such extraordinary diligence in vigilance over the goods is furtherexpressed in Articles 1734, 1735 and 1745, Nos. 5, 6, and 7, whilethe extraordinary diligence for the safety of the passengers isfurther set forth in Articles 1755 and 1756.

LIABILITY FOR LOSS; PRESUMPTION OF NEGLIGENCE

Art. 1734, NCC. Common carriers are responsible for the loss,destruction, or deterioration of the goods, unless the same is dueto any of the following causes only:

(1) Flood, storm, earthquake, lightning, or other natural disasteror 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 thecontainers;

(5) Order or act competent public authority.

Art. 1735, NCC. In all cases other than those mentioned in Nos. 1,2, 3, 4 and 5 of the preceding article, if the goods are lost,destroyed or deteriorated, common carriers are presumed to havebeen at fault or to have acted negligently, unless they prove thatthey observed extraordinary diligence as required in Article 1733.

EXEMPTION FROM LIABILITY

Art. 1734(1), NCC.

(1) Flood, storm, earthquake, lightning, or other natural disasteror calamity; xxx xxx xxx

Art. 1739. NCC. In order that the common carrier may be

exempted from responsibility, the natural disaster muxt havebeen the proximate and only cause of the loss.

However, the common carrier must exercise due diligence toprevent or minimize loss before, during and after theoccurrence of flood, storm, or other natural disaster in orderthat the common carrier may be exempted from liability forthe loss, destruction, or deterioration of the goods.

The same duty is incumbent upon the common carrier in caseof an act of the public enemy referred to in Article 1734, No.2.

Art. 1740, NCC. If the common carrier negligently incurs indelay in transporting the goods, a natural disaster shall notfree such carrier from responsibility.

(2) Act of the public enemy in war, whether international or civil;xxx

Art. 1739, NCC. In order that the common carrier may beexempted from responsibility, the natural disaster must havebeen the proximate and only cause of the loss.

However, the common carrier must exercise due diligence to

prevent or minimize loss before, during and afoccurrence of flood, storm, or other natural disaster that the common carrier may be exempted from liabthe loss, destruction, deterioration of the goods.

The same duty is incumbent upon the common carrierof an act of the public enemy referred to in Article 182.

(3) Act or omission of the shipper or owner of the goods

Art. 1741, NCC. if the shipper or owner merely contrithe loss, destruction or deterioration of the gooproximate cause thereof being the negligence of the ccarrier, the latter shall be liable in damages, which hoshall be equitably reduced.

(4) The character of the goods or defects in the packing o

containers;

Art. 1742, NCC. Even if the loss, destruction, or deterof the goods should be caused by the character of the

or the faulty nature of the packing or of the containecommon carrier must exercise due diligence to fore

lessen the loss.

(5) Order or act of competent authority.

Art. 1743, NCC. If through the order of public authogoods are seized or destroyed, the common carrieresponsible, provided said public authority had power the order.

Art. 1744(5), NCC.

DURATION OF LIABILITY

Art. 1736, NCC. The extraordinary responsibility of the ccarrier lasts from the time the goods are unconditionally pthe possession of, and received by the carrier for transpountil the same are delivered, actually or constructively,carrier to the consignee, or to the person who has a receive them, without prejudice to the provisions of Article

Art. 1737, NCC. The common carrier's duty to extraordinary diligence in the vigilance over the goods remfull force and effect even when they are temporarily unlostored in transit, unless the shipper or owner has made usright of stoppage in transit.

Art. 1738, NCC. The extraordinary liability of the common

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continues to be operative even during the time the goods arestored in a warehouse of the carrier at the place of destination,until the consignee has been advised of the arrival of the goodsand has reasonable opportunity thereafter to remove them orotherwise dispose of them.

AGREEMENT LIMITING LIABILITY

Art. 1744, NCC. A stipulation between the common carrier and theshipper or 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 or owner;(2) Supported by a valuable consideration other than the service

rendered by the common carrier; and(3) Reasonable, just and not contrary to public policy.

Art. 1745, NCC. Any of the following or similar stipulations shall beconsidered unreasonable, unjust and contrary to public policy:

(1) That the goods are transported at the risk of the owner of

shipper;

(2) That the common carrier will not be liable for any loss,destruction, or deterioration of the goods;

(3) That the common carrier need to observe any diligence in thecustody of the goods;

(4) That the common carrier shall exercise a degree of diligenceless than that of a good father of a family, or of a man ofordinary prudence in the vigilance over the movabletransported;

(5) That the common carrier shall not be responsible for the actsor omissions of his or its employees;

(6) That the common carrier's liability for acts committed bythieves, or of robbers who do not act with grave or irresistiblethreat, violence or force, is dispensed with or diminished;

(7) That the common carrier is not responsible for the loss,destruction, or deterioration of goods on account of thedefective condition of the car, vehicle, ship, airplane or otherequipment used in the contract of carriage.

AS TO AMOUNT OF LIABILITY

Art. 1749, NCC. A stipulation that the common carrier's liability is

limited to the value of the goods appearing in the bill of lading,unless the shipper or owner declares a greater value, is binding.

Art. 1750, NCC. A contract fixing the sum that may be recoveredby the owner or shipper for the loss, destruction, or deteriorationof the goods is valid, if it is reasonable and just under thecircumstances, and has been fairly and freely agreed upon.

FACTORS AFFECTING AGREEMENT;PRESUMPTION OF NEGLIGENCE

Art. 1746, NCC. An agreement limiting the common carrier'sliability may be annulled by the shipper or owner if the commoncarrier refused to carry the goods unless the former agreed tosuch stipulation.

Art. 1747, NCC. If the common carrier, without just cause, delaysthe transportation of the goods or changes the stipulated or usual

route, the contract limiting the common carrier's liability cannot beavailed of in case of the loss, destruction, or deterioration of the

goods.

Art. 1748, NCC. An agreement limiting the common carrier'sliability for delay on account of strikes or riots is valid.

Art. 1751, NCC. The fact that the common carrier has no

competitor along the line or route, or a part thereof, to which thecontract refers shall be taken into consideration of the question ofwhether or not a stipulation limiting the common carrier's liabilityis reasonably just and in accordance with public policy.

Art. 1752, NCC. Even when there is an agreement limiting theliability of the common carrier in the vigilance over the goods, thecommon carrier is disputably presumed to have been negligent incase of their loss, destruction or deterioration.

PASSENGER'S BAGGAGE

Art. 1754, NCC. The provisions of Articles 1733 to 1753 shall applyto the passenger's baggage which is not in his personal custody orin that of his employees.

As to other baggage, the rules in Articles 1998 and 2000 to 2003concerning the responsibility of hotel-keepers shall be applicable.

COMMON CARRIER OF PASSENGERS

Art. 1732, NCC. Common carriers are persons, corporations, firms

or associations engaged in the business of carrying or transpassengers or goods or both, by land, water, or compensation, offering their services to the public.

Art. 1733, NCC. Common carriers from the nature of their band for reasons of public policy, are bound to extraordinary diligence in the vigilance over the goods andsafety of the passengers transported by them, accordincircumstances of each case.

Such extraordinary diligence in the vigilance over the g

further expressed in Articles 1734, 1735 and 1745, Nos. 57, while the extraordinary diligence for the safety passengers is further set forth in Articles 1755 and 1756.

Art. 1755, NCC. A common carrier is bound to cany the passafely as far as human care and foresight can provide, usutmost diligence of very cautious persons, with a due regar

the circumstances.

PRESUMPTION OF NEGLIGENCE

Art. 1756, NCC. In case of death of or injuries to pascommon carriers are presumed to have been at fault or

acted negligently, unless they prove that they oextraordinary diligence as prescribed in Articles 1733 and 1

LIMITATIONS OF LIABILITY; VALIDITY OF STIPULAT

Art. 1757, NCC. The responsibility of a common carrier safety of passengers as required in Articles 1733 and 1755be dispensed with or lessened by stipulation, by the ponotices, by statements on tickets or otherwise.

Art. 1758, NCC. When a passenger is carried gratuitostipulation limiting the common carrier's liability for negligvalid, but not for willful acts or gross negligence.

The reduction of fare does not justify any limitation of the ccarrier's liability.

RESPONSIBILITY FOR ACTS OF EMPLOYEES

Art. 1759, NCC. Common carriers are liable for the deatinjuries to passengers through the negligence or willful actformer's employees, although such employees may havbeyond the scope of their authority or in violation of the othe common carriers.

The liability of the common carriers does not cease upon prothey exercised all the diligence of a good father of a famil

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selection and supervision of their employees

Art. 1760, NCC. The common carrier's responsibility prescribed inthe preceding article cannot be eliminated or limited by stipulation,by the posting of notices, by statements on the tickets orotherwise.

RESPONSIBILITY FOR ACTS OF STRANGERS; CO-PASSENGERS

Art. 1763, NCC. A common carrier is responsible for injuries

suffered by a passenger on account of the wilful acts or negligenceof other passengers or of strangers, if the common carrier'semployees through the exercise of the diligence of a good father ofa family could have prevented or stopped the act or omission.

DUTY OF PASSENGER; EFFECT OF CONTRIBUTORYNEGLIGENCE

Art. 1761, NCC. The passenger must observe the diligence of a

good father of a family to avoid injury to himself.

Art. 1762, NCC. The contributory negligence of the passenger doesnot bar recovery of damages for his death or injuries, if the

proximate cause thereof is the negligence of the common carrier,but the amount of damages shall be equitably reduced.

DAMAGES RECOVERABLE FROM COMMON CARRIERS

Art. 1764, NCC. Damages in cases comprised in this Section shallbe awarded in accordance with the Title XVII of this book,concerning damages.

Article 2206 shall also apply to the death of a passenger caused bythe breach of contract by a common carrier.

Art. 2197, NCC. Damages may be:(1) Actual or compensatory;(2) Moral;(3) Nominal;(4) Temperate or moderate;(5) Liquidated; or(6) Exemplary or corrective.

ACTUAL OR COMPENSATORY DAMAGES

Art. 2199, NCC. Except as provided by law or by stipulation, one isentitled to an adequate compensation only for such pecuniary losssuffered by him as he has duly proved.

Such compensation is referred to as actual or compensatory

damages.

Art. 2201, NCC. In contracts and quasi-contracts, the damages forwhich the obligor who acted in good faith is liable shall be thosethat are the natural and probable consequences of the breach ofthe obligation, and which the parties have foreseen at the time theobligation was constituted.

In case of fraud, bad faith, malice or wanton attitude, the obligorshall be responsible for all damages which may be reasonablyattributed to the non-performance of the obligation.

Art. 2203, NCC. The party suffering loss or injury must exercisethe diligence of a good father of a family to minimize the damagesresulting from the act or omission in question.

Art. 2205, NCC. Damages may be recovered.

(1) For loss or impairment of earning capacity in cases oftemporary or permanent personal injury;

(2) For injury to the plaintiffs, business standing of commercial

credit.

Art. 2206, NCC. The amount of damages for death caused by acrime or quasi-delict shall be at least three thousand pesos, even

though there may have been mitigating circumstances. Inaddition:

(1) The defendant shall be liable for the loss of the earningcapacity of the deceased, and the indemnity shall be paid tothe heirs of the latter; such indemnity shall in every case beassessed and awarded by the court, unless the deceased onaccount of permanent physical disability not caused by thedefendant, had no earning capacity at the time of his death.XXX

MORAL DAMAGES

Art. 2206, NCC. The amount of damages for death caused a crimeof quasi-delict shall be at least three thousand pesos, even thoughthere may be have been mitigating circumstances.

In addition: XXX

(3) The spouse, legitimate and illegitimate descendants andascendants of the deceased may demand moral damages formental anguish by reason of the death of the deceased.

Art. 2216, NCC. No proof of pecuniary loss is necessary in orderthat moral, nominal temperate, liquidated or exemplary damages

may be adjudicated.

The assessment of such damages, except liquidated ones, ithe discretion of the court, according to the circumstancescase.

Art. 2217, NCC. Moral damages include physical sufferinganguish, fright, serious, anxiety, besmirched reputation, wfeelings, moral shock, social humiliation, and similar injury.

Though incapable of pecuniary computation, moral damag

be recovered if they are the proximate result of the defewrongful act or omission.

Art. 2219, NCC. Moral damages may be recovered in the fand analogous cases:

(1) A criminal offense resulting in physical injuries.

(2) Quasi-delict causing physical injuries;(3) Seduction, abduction, rape, or other lascivious acts;

(4) Adultery or concubinage;(5) Illegal or arbitrary detention or arrest;

(6) Illegal search;(7) Libel, slander or any or other form of defamation;

(8) Malicious prosecution;(9) Acts mentioned in Article 309;

(10) Acts and actions referred to in Articles 21, 26, 27, 28,232, 34, and 35.

The parents of the female seduced, abducted, raped, or referred to in No. 3 of this article, may also recovedamages.

The spouse, descendants, ascendants and brothers andmay bring the action mentioned in No. 9 of this articleorder named.

Art. 2220, NCC. Willful injury to property may be a legal for awarding moral damages if the court should find thatthe circumstances, such damages are justly due.

The same rule applies to breaches of contract where the deacted fraudulently or in bad faith.

EXEMPLARY DAMAGES

Art. 2229, NCC. Exemplary or corrective damages are impoway of example or correction for the public good, in additiomoral, temperate, liquidated or compensatory damages.

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Art. 2232, NCC. In contracts and quasi-contracts, the court mayaward exemplary damages if the defendant acted in a wanton,fraudulent, reckless, oppressive, or malevolent manner.

Art. 2233, NCC. Exemplary damages cannot be recovered as amatter of right; the court will decide whether or not they should beadjudicated.

NOMINAL, TEMPERATE, LIQUIDATED DAMAGES

Art. 2221, NCC. Nominal damages are adjudicated in order that aright of the plaintiff, which has been violated or invaded by thedefendant, may be vindicated or recognized, and not for thepurpose of indemnifying the plaintiff for any loss suffered by him.

Art. 2224, NCC. Temperate or moderate damages, which are morethan nominal but less than compensatory damages, may be

recovered when the court finds that some pecuniary loss has beensuffered but its amount cannot, from the nature of the case, be

proved with certainty.

Art. 2226, NCC. Liquidated damages are those agreed upon by theparties to a contract, to be paid in case of breach thereof.

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CODE OF COMMERCEPROVISIONS ON TRANSPORTATION OVERLAND

TITLE VIICOMMERCIAL CONTRACTS FOR TRANSPORTATION

OVERLAND

Article 349. A contract of transportation by land or waterways ofany kind shall be considered commercial:

1. When it has for its object merchandise or any article of

commerce.

2. When, whatever its object may be, the carrier is a merchantor is habitually engaged in transportation for the public.

Article 350. The shipper as well as the carrier of merchandise orgoods may mutually demand that a bill of lading be made, stating:

1. The name, surname and residence of the shipper.

2. The name, surname and residence of the carrier.

3. The name, surname and residence of the person to whom or

to whose order the goods are to be sent or whether they areto be delivered to the bearer of said bill.

4. The description of the goods, with a statement of their kind, of

their weight, and of the external marks or signs of thepackages in which they are contained.

6. The cost of transportat ion.

7. The date on which shipment is made.

8. The place of delivery to the carrier.

9. The place and the time at which delivery to the consigneeshall be made.

10. The indemnity to be paid by the carrier in case of delay, ifthere should be any agreement on this matter.

Article 351. In transportation made by railroads or otherenterprises subject to regulation rate and time schedules, it shallbe sufficient for the bills of lading or the declaration of shipmentfurnished by the shipper to refer with respect to the cost time andspecial conditions of the carriage, to the schedules and regulationsthe application of which he requests; and

if the shipper does not determine the schedules, the carrier must

apply the rate of those which appear to be the lowest, with theconditions inherent thereto always including a statement orreference to in the bill of lading which he delivers to the shipper.

Article 352. The bills of lading, or tickets in cases of transportationof passengers, may be diverse, some for persons and others forbaggage;

but all of them shall bear the name of the carrier, the date ofshipment, the points of departure and arrival, the cost, and withrespect to the baggage, the number and weight of the packages,

with such other manifestations which may be considered necessaryfor their easy identification.

Article 353. The legal evidence of the contract between the shipperand the carrier shall be the bills of lading, by the contents of whichthe disputes which may arise regarding their execution andperformance shall be decided, no exceptions being admissible

other than those of falsity and material error in the drafting.

After the contract has been complied with, the bill of lading whichthe carrier has issued shall be returned to him, and by virtue of

the exchange of this title with the thing transported, the respectiveobligations and actions shall be considered cancelled, unless in the

same act the claim which the parties may wish to reserve bereduced to writing, with the exception of that provided for in

Article 366.

In the case the consignee, upon receiving the goods, cannot returnthe bill of lading subscribed by the carrier, because of its loss orany other cause, he must give the latter a receipt for the goodsdelivered, this receipt producing the same effects as the return ofthe bill of lading.

Article 354. In the absence of a bill of lading, disputes shall bedetermined by the legal proofs which the parties may present insupport of their respective claims, according to the generalprovisions established in this Code for commercial contracts.

Article 355. The responsibility of the carrier shall commence fromthe moment he receives the merchandise, personally or through aperson charged for purpose, at the place indicated for receivingthem.

Article 356. Carriers may refuse packages which appear unfit fortransportation; and

if the carriage is to be made by railway, and the shipment isinsisted upon, the company shall transport them, being exemptfrom all responsibility if its objections are made to appear in thebill of lading.

Article 357. If by reason of well-founded suspicion of falsitdeclaration as to the contents of a package the carrierdecide to examine it, he shall proceed with his investigatiopresence of witnesses, with the shipper or consigattendance.

If the shipper or consignee who has to be cited does not the examination shall be made before a notary, who shall a memorandum of the result of the investigation, fopurposes as may be proper.

If the declaration of the shipper should be true, the eoccasioned by the examination and that of carefully repacpackages shall be for the account of the carrier and in a ccase for the account of the shipper.

Article 358. If there is no period fixed for the delivery of the

the carrier shall be bound to forward them in the first shipthe same of similar goods which he may make to the poin

he must deliver them; and should he not do so, the dacaused by the delay should be for his account.

Article 359. If there is an agreement between the shipper

carrier as to the road over which the conveyance is to bethe carrier may not change the route, unless it be by re

force majeure; and

should he do so without this cause, he shall be liable forlosses which the goods he transports may suffer from ancause, besides paying the sum which may have been stipulsuch case.

When on account of said cause offorce majeure, the carrietake another route which produced an increase in transpocharges, he shall be reimbursed for such increase uponproof thereof

Article 360. The shipper, without changing the place whdelivery is to be made, may change the consignment of thwhich he delivered to the carrier, provided that at the ordering the change of consignee the bill of lading signedcarrier, if one has been issued, be returned to him, in exchaanother wherein the novation of the contract appears.

The expenses which this change of consignment occasions for the account of the shipper.

Article 361. The merchandise shall be transported at the rventure of the shipper, if the contrary has not been exstipulated.

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As a consequence, all the losses and deteriorations which thegoods may suffer during the transportation by reason of fortuitousevent, force majeure, or the inherent nature and defect of thegoods shall be for the account and risk of the shipper.

Proof of these accidents is incumbent upon the carrier.

Article 362. Nevertheless, the carrier shall be liable for the lossesand damages resulting from the causes mentioned in thepreceding article if it is proved, as against him, that they arose

through his negligence or by reason of his having failed to take theprecautions which usage has established among careful persons,unless the shipper has committed fraud in the bill of lading,representing the goods to be of a kind or quality different fromwhat they really were.

If, notwithstanding the precautions referred to in this article, the

goods transported run the risk of being lost, on account of theirnature or by reason of unavoidable accident, there being no time

for their owners to dispose of them, the carrier may proceed to sellthem, placing them for this purpose at the disposal of the judicial

authority or of the official designated by special provisions.

Article 363. Outside of the cases mentioned in the secondparagraph of Article 361, the carrier shall be obliged to deliver the

goods shipped in the same condition in which, according to the billof lading, they were found at the time they were received, without

any damage or impairment, and failing to do so, to pay the valuewhich those not delivered may have at the point and at the time atwhich their delivery should have been made.

If those not delivered form part of the goods transported, theconsignee may refuse to receive the latter, when he proves that hecannot make use of them independently of the others.

Article 364. If the effect of the damage referred to in Article 361 ismerely a diminution in the value of the goods, the obligation of thecarrier shall be reduced to the payment of the amount which, inthe judgment of experts, constitutes such difference in value.

Article 365. If, in consequence of the damage, the goods arerendered useless for sale and consumption for the purposes forwhich they are properly destined, the consignee shall not be boundto receive them, and he may have them in the hands of the

carrier, demanding of the latter their value at the current price onthat day.

If among the damaged goods there should be some pieces in goodconditions and without any defect, the foregoing provision shall beapplicable with respect to those damaged and the consignee shall

receive those which are sound, this segregation to be made bydistinct and separate pieces and without dividing a single object,unless the consignee proves the impossibility of convenientlymaking use of them in this form.

The same rule shall be applied to merchandise in bales orpackages, separating those parcels which appear sound.

Article 366. Within the twenty-four hours following the receipt ofthe merchandise, the claim against the carrier for damage oraverage which may be found therein upon opening the package,

may be made, provided that the indications of damage or averagewhich gives rise to the claim cannot be ascertained from theoutside part of such packages, in which case the claim shall beadmitted only at the time of receipt.

After the periods mentioned have elapsed, or the transportationcharges have been paid no claim shall be admitted against the

carrier with regard to the condition in which the goods transportedwere delivered.

Article 367. If doubts and disputes should arise between the

consignee and the carrier with respect to the condition of thegoods transported at the time their delivery to the former is made,

the goods shall be examined by experts is appointed by theparties, and, in a case of disagreement, by a third one appointed

by the judicial authority, the results to be reduced to writing, andif the interested parties should not agree with the expert opinion

and they do not settle their differences, the merchandise shall bedeposited in a safe warehouse by order of the judicial authority,and they shall exercise their rights in the manner that may beproper.

Article 368. The carrier must deliver to the consignee, without anydelay or obstruction, the goods which he may have received, bythe mere fact of being named in the bill of lading to receive them;and

if he does not do so, he shall be liable for the damages which maybe caused thereby.

Article 369. If the consignee cannot be found at the residenceindicated in the bill of lading or if he refuses to pay thetransportation charges and expenses, or if he refuses to receivethe goods, the municipal judge, where there is none of the first

instance, shall provide for their deposit at the disposal of theshipper, this deposit producing all the effects of delivery withoutprejudice to third parties with a better right.

Article 370. If a period has been fixed for the delivery of thegoods, it must be made within such time, and for failure to do so,

the carrier shall pay the indemnity stipulated in the bill ofneither the shipper nor the consignee being entitled to aelse.

If no indemnity has been stipulated and the delay excetime fixed in the bill of lading, the carrier shall be liable damages which the delay may have caused.

Article 371. In case of delay through the fault of the referred to in the preceding articles, the consignee may legoods transported in the hands of the former, advising him

in writing before their arrival at the point of destination.

When this abandonment takes place, the carrier shall payvalue of the goods as if they had been lost or mislaid.

If the abandonment is not made, the indemnification for losdamages by reason of the delay cannot exceed the curre

which the goods transported would have had on the day andplace in which they should have been delivered; this same

to be observed in all other cases in which this indemnity due.

Article 372. The value of the goods which the carrier mus

cases of loss or misplacement shall be determined in accowith that declared in the bill of lading, the shipper no

allowed to present proof that among the goods declaredthere were articles of greater value and money.

Horses, vehicles, vessels, equipment and all other princiaccessory means of transportation shall be specially bound of the shipper, although with respect to railroads said liabibe subordinated to the provisions of the laws of concessirespect to the property, and to what this Code establishethe manner and form of effecting seizures and attaagainst said companies.

Article 373. The carrier who makes the delivery merchandise to the consignee by virtue of combined agreor services with other carriers shall assume the obligathose who proceeded him in the conveyance, reserving his proceed against the latter if he was not the party responsible for the fault which gave rise to the claim of the or consignee.

The carrier who makes the delivery shall likewise acquireactions and rights of those who preceded him in the convey

The shipper and the consignee shall have an immediate action against the carrier who executed the transpcontract, or against the other carriers who may have rece

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goods transported without reservation.

However, the reservation made by the latter shall not relieve themfrom the responsibilities which they may have incurred by theirown acts.

Article 374. The consignees to whom the shipments was mademay not defer the payment of the expenses and transportationcharges of the goods they received after the lapse of twenty-fourhours following their delivery; and in case of delay in thispayment, the carrier may demand the judicial sale of the goods

transported in an amount necessary to cover the cost oftransportation and the expenses incurred.

Article 375. The goods transported shall be especially bound toanswer for the cost of transportation and for the expenses andfees incurred for them during their conveyance and until themoment of their delivery.

This special right shall prescribed eight days after the delivery has

been made, and once prescribed, the carrier shall have no otheraction than that corresponding to him as an ordinary creditor.

Article 376. The preference of the carrier to the payment of what is

owed him for the transportation and expenses of the goodsdelivered to the consignee shall not be cut off by the bankruptcy of

the latter, provided it is claimed within the eight days mentioned inthe preceding article.

Article 377. The carrier shall be liable for all the consequenceswhich may arise from his failure to comply with the formalitiesprescribed by the laws and regulations of the publicadministration, during the whole course of the trip and uponarrival at the point of destination, except when his failure arises

from having been led into error by falsehood on the part of theshipper in the declaration of the merchandise.

If the carrier has acted by virtue of a formal order of the shipperor consignee of the merchandise, both shall become responsible.

Article 378. Agents for transportation shall be obliged to keep aspecial registry, with the formalities required by Article 36, inwhich all the goods the transportation of which is undertaken shallbe entered in consecutive order of number and dates, with astatement of the circumstances required in Article 350 and others

following for the respective bills of lading.

Article 379. The provisions contained in Article 349 and followingshall be understood as equally applicable to those who, althoughthey do not personally effect the transportation of themerchandise, contract to do so through others, either as

contractors for a particular and definite operation, or as agents fortransportations and conveyances.

In either case they shall be subrogated in the place of the carriersthemselves, with respect to tho obligations and responsibility ofthe latter, as well as with regard to their rights.

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VESSEL IN GENERAL

PRESIDENTIAL DECREE NO. 474 (PROVIDING FOR THEREORGANIZATION OF MARITIME FUNCTIONS IN THEPHILIPPINES, CREATING THE MARITIME INDUSTRYAUTHORITY AND FOR OTHER PURPOSES).

"b. "Vessels" or "Water craft" Any barge, lighter, bulk carrierpassenger ship freighter, tanker, container ship, fishing boatsor other artificial contrivance utilizing any source of motivepower designed, used or capable of being used as a means of

water transportation operating either as common contractcarrier,

including fishing vessels covered under Presidential DecreeNo. 43, except

(1) those owned and/or operated by the Armed Forces of the

Philippines and by foreign governments for militarypurposes, and

(ii) bancos, sailboats and other waterborne contrivance of less

than three gross capacity and not motorized." (Sec. 3)

xxx The Administrator shall:

"a. Issue Certificate of Philippine Registry for all vesselsbeing used in Philippine waters, including fishing vessels

covered by Presidential Decree No. 43 except transientcivilian vessels of foreign registry, vessels owned and/ oroperated by the Armed Forces of the Philippines or byforeign governments for military purposes, and bancos,sailboats and other watercraft which are not motorized,or less than three gross tons (Sec. 12).

EXECUTIVE ORDER NO. 125-A (AMENDING EXECUTIVE ORDER NO.125, ENTITLED "REORGANIZING THE MINISTRY OFTRANSPORTATION AND COMMUNICATIONS DEFINING ITSPOWERS AND FUNCTIONS, AND FOR OTHER PURPOSES")

"The Maritime Industry Authority is hereby retained and shall havethe following functions:

c. Issue Certificates of Public Convenience for the operation ofdomestic and overseas water carriers;

d. Register as well as issue certificates, licenses or documentsnecessary or incident thereto.

Art. 585, Corn. Code. For all purposes of law not modified or

restricted by the provisions of this Code, vessels shall continue tobe considered as personal property.

ACQUISITION OF VESSELS

Art. 573, Corn. Code. Merchant vessels constitute property, whichmay be acquired and transferred by any of the means recognizedby law.

The acquisition of a vessel must be included in a writteninstrument, which shall not produce any effect with regard to third

persons if not recorded in the registry of vessels.

The ownership of a vessel shall also be acquired by the possessionthereof in good faith for three years, with a just title dulyrecorded.

In the absence of any of these requisites, uninterrupted possession

for ten years shall be necessary in order to acquire ownership.

A captain cannot acquire by prescription the ship of which he is incommand.

Art. 574, Corn. Code. Builders of vessels may employ the material

and with regard to their construction and rigging may follow thesystem which is not convenient to their interests.

Ship agents and seaman shall be subject to the provisions of the

laws and regulations of the public administration on navigation,customs, health, safety of vessels and other similar provisions.

Art. 712, NCC. Ownership is acquired by occupation and byintellectual creation.

Ownership and other real rights over property are acquired andtransmitted by law, by donation, by testate and intestatesuccession, and in consequence of certain contracts, by tradition.

They may also be acquired by means of prescription.

JUDICIAL AND VOLUNTARY SALE

Art. 578, Corn. Code. If the vessel being on a voyage or in aforeign port, its owner or owners should voluntarily alienate hereither to Filipinos or to foreigners domiciled in the capital or in a

port of another country, the bill of sale shall be executed beforethe Consul of the Republic of the Philippines at the port where itterminates its voyage, and said instrument shall produce no effectwith regard to third persons if it is not inscribed in the registry ofthe consulate.

The consul shall immediately forward a true copy of thepurchase of the vessel to the registry of vessels of the porsaid vessel is inscribed and registered.

In every case, the alienation of the vessel must be made towith a statement of whether the vendor receives its price ior part thereof, or whether he retains any interest in said vfull or in part.

In case the sale is made to a Filipino, this fact shall be sthe certificate of navigation.

When a vessel, being on a voyage, shall be rendered usenavigation, the captain shall apply to the judge or ccompetent jurisdiction of the port of arrival, should it be aport, to the consul of the Republic of the Philippines, shoube one, or to the judge, or court or local authority in the of the former; and

the consul, or the judge, or court, on in their absence, th

authority, shall order an examination of the vessel to be ma

If the consignee or the underwriter should reside at said should have representatives there, they must be cited i

that they may take part in the proceedings for the accwhom it may concern.

Art. 579, Com. Code. After the damages to the vessel h

proved as well as the impossibility of her being repacontinue the voyage, her sale at public auction shall be osubject to the following rules:

1. The hull of the vessel, her rigging, engines, stores anarticles shall be appraised by means of an inventoproceedings being brought to the notice of the persomay wish to take part in the auction.

2. The order or decree ordering the public auction sposted in the usual places, and shall be advertisednewspaper of the port where the auction is to be heldthere be any, and in the other newspaper which the coudetermine.

The period which may be fixed for the auction shall notthan twenty days.

3. These advertisements shall be repeated every ten dtheir publication shall be stated in the proceedings.

4. The auction shall be held on the day fixed, with the forprescribed in the common law for judicial sales.

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If the sale should take place when the vessel is in a foreigncountry, the special provisions governing such cases shall beobserved.

Art. 580. Corn. Code. In all judicial sales of vessels for thepayment of creditors, the said creditors shall have preference inthe order stated: (subject to and/or modified by P.D. No. 214)

1. The credits in favor of the public treasury proven by means ofan official certificate of the competent authority.

2. The judicial costs of tike proceedings, according to anappraisement approved by the judge or court.

3. The pilotage charges, tonnage dues, and the other sea or portcharges, proven by means of proper certificates of the officersentrusted with the collection.

4. The salaries of the caretakers and watchmen of the vessel and

any other expenses connected with the preservation of saidvessel, from the time of arrival until her sale, which appear to

have been paid or are due by virtue of a true accountapproved by the judge or court.

5. The rent of the warehouse where the rigging and stores of the

vessel have been taken cared of, according to contract.

6. The salaries due the captain and crew, during their lastvoyage, which shall he verified by virtue of the liquidationmade from the rolls of the crew and account books of thevessel, approved by the chief of the Bureau of MerchantMarine where there is one, and in his absence by the consul,or judge, or court.

7. The reimbursement for the parts of the freight the captainmay have sold in order to repair the vessel, provided the salehas been ordered by a judicial instrument executed with theformalities required in such cases, and recorded in thecertificate of the registry of the vessel.

8. The part of the price which has not been paid the last vendor,the credits pending for the payment of material and work inthe construction of the vessel when it has not navigated, andthose arising from the repair and equipment of the vessel and

its provisioning with victuals and fuel during its last voyage.

In order that the credits provided for in this subdivision mayenjoy the preference, they must appear by contracts recordedin the registry of vessels, or if they were contracted for thevessel while on a voyage and said vessel has not returned to

the port of her registry, they must be made under theauthority required for such cases and entered in the certificateof registry of said vessels.

9. The amounts borrowed on bottomry bonds before thedeparture of the vessel, proven by means of the contractexecuted according to law and recorded in the Registry ofVessels, the amounts borrowed during the voyage with theauthority mentioned in the foregoing subdivision complyingwith the same requisites, and the insurance premium, provenby the policy of the contract or certificate taken from the

books of the broker.

10. The indemnity due the shippers for the value of the goodsshipped, which were not delivered to the consignees or foraverages suffered for which the vessel is liable, providedeither appears in a judicial or arbitration decision.

Art. 681, Corn. Code. If the proceeds of the sale should not besufficient to pay all the creditors included in one number or grade,

the residue shall be divided among thempro rata.

Art. 582, Corn. Code. After the bill of the judicial sale at publicauction has been executed and inscribed in the Registry of Vessels,

all the other liabilities of the vessel in favor of the creditors shallbe considered cancelled.

But if the sale should have been voluntary, and should have been

made while the vessel was on a voyage, the creditors shall retaintheir rights against the vessel until her return to the port of herregistry, and three months after the record of sale in the Registryof Vessels, or after her arrival.

Art. 576, Corn. Code. The rigging, tackle, stores, and engine of avessel, if it is a steamer, shall always be understood as included inthe sale thereof if they are owned by the vendor at the time of thesale.

The arms, munitions of war, provisions, and fuel shall not beconsidered as included in the sale.

The vendor shall be under the obligation to deliver to thepurchaser a certificate of the record of the vessel in the registry upto the date of the sale.

Art. 577, Corn. Code. If the alienation of the vessel should takeplace while said vessel is on a voyage, the purchaser shall receiveall the freightage it earns from the time it received its last cargo,and the payment of the crew and other persons which go to makeup its complement shall be paid by the purchaser for the saidvoyage.

If the sale takes place after the arrival of the vessel at theits destination, the freightage shall belong to the vendor shall pay the crew and other persons which go to makcomplement, unless there is an agreement to the coneither case.

PERSONS PARTICIPATING IN MARITIME COMMER

Art. 586, Corn. Code. The owner of a vessel and the shipshall be civilly liable for the acts of the captain and

obligations contracted by the latter to repair, equip, and pthe vessel, provided the creditor proves that the amount was invested for the benefit of the same.

By ship agent is understood the person entrusted with provof a vessel, or who represents her in the port in whhappens to be.

Art. 587, Com. Code. The ship agents shall be civilly liable

indemnities in favor of third persons which arise from the of the captain in the care of the goods which the vessel

but he may exempt himself therefrom by abandoning thewith all her equipments and the freightage it may have

during the voyage.

Art. 588, Corn. Code. Neither the owner of the vessel nor tagent shall be liable for the obligations contracted by the ca

the latter exceeds his powers and privileges pertaining to reason of his position or conferred upon him by the former.

However, if the amounts claimed were made use of for theof the vessel, the owner or agent shall be liable.

Art. 589, Com. Code. If two or more persons should owners of a merchant vessel, an association shall be presuestablished by the part owners.

This partnership shall be governed by the resolutionsmajority of the members.

A majority shall be the relatives majority of the voting mem

If there should be only two part owners, in case of disagrethe vote of the member having the largest interest s

decided by lot.

The representation of the smallest part in the ownership shone vote; and proportionately the other part owners avotes as they have parts equal to the smallest one.

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A vessel cannot be detained, attached or levied upon execution inher entirely for the private debts of a part owner, but theproceedings shall be limited to the interest the debtor may have inthe vessel, without interfering with her navigation.

Art. 590, Corn. Code. The co-owners of a vessel shall be civillyliable, in the proportion of their contribution to the common fund,for the results of the acts of the captain, referred to in Article 587.

Each part owner may exempt himself from this liability by theabandonment before a notary of the part of the vessel belonging

to him.

Art. 591, Corn. Code. All the part owners shall be liable inproportion to their respective ownership, for the expenses ofrepairs to the vessel, and for other expenses which are incurred byvirtue of a resolution of the majority.

They shall likewise be liable in the same proportion for theexpenses of maintenance, equipment and provisioning of the

vessel, necessary for navigation.

Art. 592, Com. Code. The resolutions of the majority with regardto the repair, equipment, and provisioning of the vessel in the port

of departure, shall bind the minority, unless the minority membersrenounce their participation therein, which must be acquired by

the other part owners after a judicial appraisement of the value ofthe portion or portions assigned.

The resolutions of the majority relating to the dissolution of theassociation and sale of the vessel shall also be binding on theminority.

The sale of the vessel must be made at public auction, subject tothe provisions of the law of civil procedure unless the part ownersunanimously agree otherwise, subject always to the right of pre-emption and redemption mentioned in Article 575 being alwaysreserved in favor of said part owners.

Art. 593, Corn. Code. The owners of a vessel shall have preferencein her charter over other persons, offering equal conditions andprice.

If two or more of the former should claim said right the one havinggreater interest shall be preferred, and should they have equal

interest, it shall be decided by lot.

Art. 594, Corn. Code. The part owners shall elect the manager whois to represent them in the capacity of ship agent.

The appointment of director or ship agent shall be revocable at the

will of the members.

Art. 595, Corn. Code. The ship agent, be he at the same time anowner of a vessel or a manager for an owner or for an associationof co-owners, must be qualified to trade and must be recordedin the merchant's registry of the province.

The ship agent shall represent the ownership of the vessel, andmay, in his own name and in such capacity, take judicial andextrajudicial steps in all that relates to commerce.

Art. 596, Corn. Code. The ship agent may discharge the duties ofcaptain of the vessel subject in every case, to the provisionscontained in Article 609.

If two or more co-owners request the position of captain, thedisagreement shall be decided by a vote of the members, and ifthe vote should result in a tie, the position shall be given to the

part owner having the larger interest in the vessel.

If the interest of the petitioners should be the same, and thereshould be a tie, the matter shall be decided by lot.

Art. 597, Corn. Code. The ship agent shall select and enter into an

agreement with the captain, and shall contract in the name of theowners, who shall be bound in all that refers to repairs, details of

equipment, armament, provisions, fuel, and freight of the vessel,and, in general, in all that relates to the requirements of

navigation.

Art. 598, Corn. Code. The ship agent cannot order a new voyage,nor make contracts for a new charter, nor insure the vessel,without the authority of her owner or by virtue of a resolution ofthe majority of the co-owners, unless these privileges weregranted him in the certificate of his appointment.

If he should insure the vessel without authority therefor he shallbe secondarily liable for the solvency of the underwriter.

Art. 599, Corn. Code. The managing ship agent of an associationshall give his co-owners an account of the results of each voyageof the vessel, without prejudice to always having the books andcorrespondence relating to the vessel and to its voyages at theirdisposal.

Art. 600, Corn. Code. After the account of the managing shipagent has been approved by a relative majority, the co-ownersshall satisfy the expenses in proportion to their interest, withoutprejudice to the civil or criminal actions which the minority maydeem fit to institute afterwards.

In order to enforce the payment, the managing ship agenbe entitled to an executory action, which shall be instituvirtue of a resolution of the majority, and without proceedings than the acknowledgment of the signaturespersons who voted for the resolution.

Art. 601, Corn. Code. Should there be any profits, the co-may demand of the managing ship agent the amount dueby means of an executory action without further requisite tacknowledgment of the signatures of the instrument approvaccount.

Art. 602, Corn. Code. The ship agent shall indemnify the for all the expenses he may have incurred from his own ffrom those of other persons, for the benefit of the vessel.

Art. 603, Corn. Code. Before a vessel goes out to sea, tagent may at his discretion, discharge the captain and mem

the crew whose contract did not state a definite perioddefinite voyage, paying them the salaries earned according

contracts, and without any indemnity whatsoever, unless thspecial and specific agreement in respect thereto.

Art. 604, Com. Code. If the captain or any other membe

crew should be discharged during the voyage, they shall their salary until the return to the place where the contr

made, unless there are good reasons for the dischargeaccordance with Article 636 et seq., of this code.

Art. 605, Com. Code. If the contract of the captain and mof the crew with the ship agent should be for a definite pevoyage, they cannot be discharged until the fulfillment contracts, except for reasons of insubordination in serious mrobbery, theft, habitual drunkenness, and damage causedvessel or to its cargo by malice, or manifest or proven negl

Art. 606, Com. Code. If the captain should be a part ownevessel, he cannot be discharged without the ship agent reto him the amount of his interest therein, which, in the absan agreement between the parties, shall be appraised by appointed in the manner established in the law of civil proce

Art. 607, Corn. Code. If the captain who is a part ownerhave obtained the command of the vessel by virtue of aagreement contained in the articles of co-partnership, he

be deprived of his office except for the reasons mentiArticle 605.

Art. 608, Corn. Code. In case of the voluntary sale of the all contracts between the ship agent and captain shall terthe right to proper indemnity being reserved in favor

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captain, according to the agreement made with the ship agent.

The vessel sold shall remain subject to the security of the paymentof said indemnity if, after the action against the vendor has beeninstituted, the latter should be insolvent.

CAPTAINS AND MASTERS OF VESSELS;QUALIFICATIONS

RA. No. 5173 provides:

Sec. 3. Specific Functions. The Philippine Coast Guard shallperform the following functions:

e) To issue licenses and certificates to officers, pilots, majorand minor patrons and seamen, as well as suspend andrevoke such licenses and certificates.

The Tariff and Customs Code provides:

Sec. 822. Certification of Application for Marine Officer. Ifthe Board of Marine Examines shall find that the experience,

habits and character of an applicant are such as to warrantthe belief that he can safely be entrusted with the duties and

responsibilities of the position for which he makes applicationand that the applicants has in other respect complied with the

other requirements of law. It shall so certify to the Bureau ofCustoms which office shall issue the appropriate certificate.

Sec. 823. Issuance of Certificates.

(a) Candidates for mate and master having passed therequisite examination shall be entitled to a certificateentitling them to navigate in any oceans.

(b) Candidates for patron in major coastwise trade havingpassed the requisite examination shall be entitled tocertificates authorizing them to navigate in the Philippinecoastwise trade.

(c) Candidates for patron in the minor coastwise trade havingpassed the requisite examination shall be entitled tocertificates authorizing them to navigate upon the sea,harbors, bays, rivers or lakes for which they have shownproficiency and thorough practical knowledge.

Art. 609, Com. Code. Captains and masters of vessels must beFilipinos, having legal capacity to bind themselves in accordancewith this Code, and must prove that they have the skill, capacity,and qualifications required to command and direct the vessel, asestablished by marine laws, ordinances or regulations, or by those

of navigation, and that they are not disqualified according to thesame for the discharge of the duties of that position.

If the owner of a vessel desires to be the captain thereof and doesnot have the legal qualifications therefor, he shall limit himself tothe financial administration of the vessel, and shall intrust hernavigation to the person possessing the qualifications required bysaid ordinance and regulations.

POWERS

Art. 610, Corn. Code. The following powers are inherent in theposition of captain, master or patron of a vessel:

1. To appoint or make contracts with the crew in the absence ofthe ship agent, and to propose said crew, should said agentbe present; but the ship agent shall not be permitted toemploy any member against the captain's express refusal.

2. To command the crew and direct the vessel to the port of its

destination, in accordance with the instructions he may havereceived from the ship agent.

3. To impose, in accordance with the agreements and the laws

and regulations of the merchant marine, on board the vessel,punishment upon those who do not comply with his orders or

who conduct themselves against discipline, holding apreliminary investigation on the crimes committed on board

the vessel on the high seas, which he shall turn over to theauthorities, who are to take cognizance thereof, at the firstport touched.

4. To make contracts for the charter of the vessel in the absenceof the ship agent or its consignee, acting in accordance withthe instructions received and protecting the interest of theowner most carefully.

5. To adopt all the measures which may be necessary to keepthe vessel well supplied and equipped, purchasing all that maybe necessary for the purpose, provided there is no time torequest instructions of the ship agent.

6. To make, in similar urgent cases and on voyage, for therepairs to the hull and engines of the vessel and to her riggingand equipment which are absolutely necessary in order for her

to be able to continue and conclude her voyage; but if sheshould arrive at a point where there is a consignee of thevessel, he shall act in concurrence with the latter.

Art. 611, Com. Code. In order to comply with the obligationsmentioned in the foregoing Article, the captain, when he has no

funds and does not expect to receive any from the shipshall procure the same in the successive order stated below

1. By requesting said funds from the consignees of the vthe correspondents of the ship agent.

2. By applying to the consignees of the cargo or to the interested therein.

3. By drawing on the ship agent.

4. By borrowing the amount required by means of a bloan.

5. By selling a sufficient amount of the cargo to coamount absolutely necessary to repair the vessel, equip her to pursue the voyage.

In the two latter cases he must apply to the judicial auththe port, if in the Republic of the Philippines and to the Ph

consul, if in a foreign country; and where there should be nthe local authority, proceeding in accordance with the provi

the law of civil procedure.

DUTIES

Art. 612, Com. Code. The following duties are inherent in thof captain:

1. To have on board before starting on a voyage a inventory of the hull, engine, rigging, tackle, stores, anequipment of the vessel; the navigation certificate; thethe persons who make up the crew of the vessel, contracts entered into with the crew, the list of passthe health certificate; the certificate of registry provownership of the vessel, and all the obligationsencumber the same up to that date; the charters or aticated copies thereof; the invoices of manifest of theand the instrument of the expert visit or inspection, shave been made at the port of departure.

2. To have a copy of this code on board.

3. To have three foiled and stamped books, placing beginning of each one a note of the number of

contains, signed by the marine official, and in his absthe competent authority.

In the first book, which shall be called "log book," henter every day the condition of the atmospheprevailing winds, the course sailed, the rigging carri

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horsepower of the engines, the distance covered, themaneuvers executed, and other incidents of navigation.

He shall also enter the damages suffered by the vessel in herhull, engines, and tackle, no matter what is its cause, as wellas the imperfections and averages of the cargo and the effectsand consequences of the jettison, should there be any; and incases of grave resolutions which require the advice or ameeting of the officers of the vessel, or even of the pas-sengers and crew, he shall record the decision adopted.

For the information indicated he shall make use of thebinnacle book, and of the steam or engine book kept by theengineer.

In the record book called the "accounting book," he shall enterall the amounts collected and paid for the account of thevessel, entering specifically article by article, the sources of

the collection, and the amounts invested in provisions, repairsacquisition of rigging or goods, fuel outfits, wages, and all

other expenses.

He shall furthermore enter therein a list of all the members ofthe crew, stating their domiciles, their wages, and salaries,

and the amounts they have received on account, eitherdirectly, or by delivery to their families.

In the third book, called "freight book," he shall record the

entry and exit of all goods, stating their marks and packages,names of the shippers and of the consignees, ports of loadingand unloading, and the freightage earned.

In the same book he shall record the names and places ofsailing of the passengers and the number of packages ofwhich their baggage consists, and the price of the passage.

4. To make, before receiving the freight, with the officers of thecrew, and two experts, if required by the shippers andpassengers, an examination of the vessel, in order toascertain whether she is watertight, and whether the riggingand engines are in good navigation; and if she has equipmentfor good navigations, preserving a certificate of memorandumof this inspection, signed by all the persons who may havetaken part therein, under their liability.

The experts shall be appointed, one by the captain of thevessel and the other one by the persons who request theexamination, and in case of disagreement a third shall beappointed by the marine authority of the port.

5. To remain constantly on board the vessel with the crew during

the time the freight is taken on board and carefully watch adangerous character to be taken on, such as inflammable orexplosive substances, without the precautions which arerecommended for their packing, management and isolation;not to permit that any freight be carried on deck which byreason if its disposition, volume, or weight makes the work ofthe sailors difficult, and which might endanger the safety ofthe vessel; and if, on account of the nature of themerchandise, the special character of the equipment, andprincipally the favorable season it takes place, he allowsmerchandise to be carried on deck, he must hear the opinion

of the officers of the vessel, and have the consent of theshippers and the ship agent.

6. To demand a pilot at the expense of the vessel wheneverrequired by navigation and principally when a port, canal orriver, or a roadstead or anchoring place is to be entered withwhich neither he, the officers nor the crew are acquainted.

7. To be on deck at the time of sighting land and to take

command on entering and leaving ports, canals roadsteads,and rivers, unless there is a pilot on board discharging his

duties.

He shall not spend the night away from the vessel except forserious causes or by reason of official business.

8. To present himself, when making a port in distress, to the

maritime authority if in the Republic of the Philippines and tothe Philippine consul if in a foreign country, before twenty-four hours have elapsed, and to make a statement of thename, registry, and port of departures of the vessel, of itscargo, and reason of arrival, which declaration shall besupervised by the authority or by the consul if after examiningthe same it is found to be acceptable, giving the captain theproper certificate in order to show his arrival under stress andthe reason therefor.

In the absence of marine officials or of the consul, thedeclaration must be made before the local authority.

9. To take the steps necessary before the competent authority inorder to enter in the certificate of the vessel in the Registry ofVessels, the obligations which he may contract in accordancewith Article 583.

10. To put in a safe place and keep all the papers and belongingsof any member of the crew who might die on the vessel,drawing, up a detailed inventory, in the presence ofpassengers, or, in their absence of members of the crew, aswitnesses.

11. To conduct himself according to the rules and pcontained in the instructions of the ship agent, being lall that he may do in violation thereof.

12. To give an account to the ship agent from the port whvessel arrives of the reason therefor, taking advantagsemaphore, telegraph, mail, etc., according to the casehim of the freight he may have received, stating thand domicile of the shippers, freightage earned, and aborrowed on bottomry loan, advise him of his departu

give him any information and data which may be of int

13. To observe the rules on the situation of lights and evto prevent collisions.

14. To remain on board in case of danger to the vessel hope to save her is lost, and before abandoning her

the officers of the crew, abiding by the decisionmajority; and if he should have to take a boat he sh

with him, before anything else, the books and papethen the articles of most value, being obliged to prove

of the loss of the books and papers that he did all he save them.

15. In case of wreck he shall make the proper protest in d

at the first port reached, before the competent auththe Philippine consul, within twenty-four hours, stating

all the incidents of the wreck, in accordance with subdiof this Article.

16. To comply with the obligations imposed by the laws aof navigation, customs, health, and others.

Art. 622, Corn. Code. If when on a voyage, the captainreceive news of the appearance of privateers or men against his flag, he shall be obliged to make the nearest port, inform his ship agent or shippers, and await an occasail under convoy or until the danger is over or to receiorders from the ship agent or shippers.

Art. 623, Corn. Code. If he should be attacked by a privatafter having tried to avoid the encounter and having resisdelivery of the equipment of the vessel or of its cargo, theybe forcibly taken away from him, or he should be obliged to

them, he shall make an entry in his freight book and shathe fact before the competent authority at the first touches.

After the force majeure has been proven, he shall be exfrom liability.

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Art. 624, Corn. Code. A captain whose vessel has gone through ahurricane or who believes that the cargo has suffered damages oraverages, shall make a protest thereon before the competentauthority at the first port he touches within the twenty-four hoursfollowing his arrival, and shall ratify it within the same period whenhe arrives at the place of his destination, immediately proceedingwith the proof of the facts, it not being permitted to open thehatches until his has been done.

The captain shall proceed in the same manner if, the vessel having

been wrecked, he is saved alone or with part of his crew, in whichcase he shall appear before the nearest authority, and make asworn statement of the facts.

The authority, or the consul abroad shall verify the said facts,receiving a sworn statement of the members of the crew andpassengers who may have been saved, and taking the other steps

which may assist in arriving at the facts, he shall make astatement of the result of the proceedings in the log book and in

that of the sailing mate, and shall deliver the original records ofthe proceedings to the captain, stamped and foiled, with a

memorandum of the folios, which he must lubricate, for theirpresentation to the judge or court of the destination.

The statement of the captain shall be accepted if it is in

accordance with those of the crew and passengers; if theydisagree, the latter shall be accepted, unless there is proof to the

contrary.

Art. 625, Corn. Code. The captain, under his personal re-sponsibility as soon as he arrives at the port of destination, shallobtain the necessary permission from the health and customsofficers, and perform the other formalities required by theregulations of the administration, delivering the cargo without anydefalcation to the consignees, and, in a proper case, the vessel,rigging and freightage to the ship agent.

PROHIBITED ACTS

Art. 613, Corn. Code. A captain who navigates for freight incommon or on shares cannot make any separate transaction forhis own account, and should he do so, the profit shall belong to

the other peoples in interests, and the losses shall be for hisexclusive account.

Art. 615, Corn. Code. Without the consent of the ship agent, thecaptain cannot have himself substituted by another persons; andshould he do so, besides being liable for all the acts of the

substitute and bound to the indemnities mentioned in theforegoing Article, the substitute as well as the captain may bedischarged by the ship agent.

Art. 617, Corn. Code. The captain may not contract loans onrespondentia secured by the cargos; and should he do so thecontract shall be void.

Neither can be borrow money on bottomry for his owntransactions, except on the portion of the vessel he owns, providedno money has been previously borrowed on the whole vessel, and

provided there does not exist any other kind of lien or obligationchargeable against the vessel.

When he is permitted to do so, he must necessarily state whatinterest he has in the vessel.

In case of violation of this Article, the principal, interest and costs,

shall be charged to the private account of the captain, and the shipagent may furthermore discharge him.

Art. 621, Com. Code. A captain who borrows money on the hull,

engines, rigging, or tackle of the vessel, or who pledges or sellsmerchandise or provisions outside of the cases and without the

formalities prescribed in this code, shall be liable for the principal,interest and costs, and shall indemnify for the damages he may

cause.

He who commits, fraud in his accounts shall reimburse the amountdefrauded, and shall be subject to the provisions of the PenalCode.

Art. 580, Corn. Code. In all judicial sales of vessels for thepayment of creditors, the said creditors shall have preference inthe order stated:

8. The part of the price which has not been paid the last vendor,the credits pending for the payment of material and work inthe construction of the vessel, when it has not navigated, andthose arising from the repair and equipment of the vessel andits provisioning with the victuals and fuel during its lastvoyage.

In order that the credits provided for in this subdivision mayenjoy the preference, they must appear by the contracts

recorded in the Registry of Vessels, of if they were contractedfor the vessel while on a voyage and said vessel has not re-turned to the port of her registry, they must be made underthe authority required for such cases and entered in the cer-tificate of registry of said vessels.

9. The amounts borrowed on bottomry bonds befdeparture of the vessel, proven by means of the executed according to law and recorded in the RegVessels, the amounts borrowed during the voyage wauthority mentioned in the foregoing subdivision cowith the same requisites and the insurance premium,by the policy of the contract or certificate taken frbooks of the broker.

Art. 583, Corn. Code. If while on a voyage the captain shoit necessary to contract one or more of the obligations me

in Nos. 8 and 9 of Article 580, he shall apply to the judge oif he is in Philippine territory, and otherwise to the consuRepublic of the Philippines, should there be one, andabsence to the judge or court to the proper local aupresenting the certificate of the registry of the vessel treatArticle 612, and the instruments proving the obligation con

The judge or court, the consul or the local authority as tmay be, in view of the result of the proceedings institute

make a temporary memorandum in the certificate of theirin order that it may be recorded in the registry when the

returns to the port of her registry, or so that it can be adma legal and preferred obligation in case of sale before the

by reason of the sale of the vessel by virtue of a declaraunseaworthiness.

The lack of this formality shall make the captain personal

to the creditors who may be prejudiced through his fault.

LIABILITIES

Art. 614, Corn. Code. A captain who, having agreed to voyage fails to fulfill his obligation, without being prevenfortuitous accident or by force majeure, shall indemnify folosses his action may cause, without prejudice to criminal pwhich may be proper.

Art. 615, Coin. Code. Without the consent of the ship agecaptain cannot have himself substituted by another persshould he do so, besides being liable for all the actssubstitute and bound to the indemnities mentioned foregoing articles, the substitute as well as the captain discharged by the ship agent.

Art. 618, Corn. Code. The captain shall be civilly liable to tagent and the latter to the third persons who may havcontracts with the former

1. For all the damages suffered by the vessel and its c

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reason of want of skills or negligence on his part.

If a misdemeanor or crime has been committed he shall beliable in accordance with the Penal Code.

2. For all the thefts and robberies committed by the crew,reserving his right of action against the guilty parties.

3. For the losses, fines, and confiscations imposed on account ofviolation of the laws and regulations of customs, police,health, and navigations.

4. For the losses and damages caused by mutinies on board thevessel, or by reason of faults committed by the crew in theservice and defense of the same, if he does not prove that hemade full use of his authority to prevent or avoid them.

5. For those arising by reason of undue use of powers and

nonfulfillment of the obligations which are his in accordancewith Articles 610 and 612.

6. For those arising by reason of his going out of his course or

taking a course which he should not have taken withoutsufficient cause, in the opinion of the officers of the vessel, at

a meeting with the shippers or supercargoes who may be onboard.

No exception whatsoever shall exempt him from this

obligation.

7. For those arising by reason of his voluntarily entering a portother than his destination, with the exception of the cases orwithout the formalities referred to in Article 612.

8. For those arising by reason of the non-observance of theprovisions contained in the regulations for lights andmaneuvers for the purpose of preventing collisions.

Art. 619, Corn. Code. The captain shall be liable for the cargo fromthe time it is turned over to him at the dock, or afloat alongsidethe ship, at the port of loading, until he delivers it on the shore oron the discharging wharf, of the port of unloading unless thecontrary has been expressly agreed upon.

Art. 620, Corn. Code. The captain shall not be liable for the

damages caused to the vessel or to the cargo by reason of forcemajeure', but he shall always be so no agreement to thecontrary being valid for those arising through his own fault.

Neither shall he be personally liable for the obligations he mayhave contracted for the repair, equipment and provisioning of the

vessel, which shall be incurred by the ship agent, unless theformer has expremly bound himself personally or signed a draft orpromissory note in his name.

OFFICERS

Art. 627, Coin. Code. The sailing mate, as the second chief of thevessel and unless the ship agent orders otherwise, shall take theplace of the captain in cases of absence, sickness, or death, andshall then assume all his powers, obligations and liabilities.

Art. 628, Corn. Code. The sailing mate must supply himself withcharts of the seas in which he will navigate with the maps andquadrants or sextants which are in use and which are necessaryfor the discharge of his duties, being liable for the accidents whichmay arise by reason of his fault in this matter.

Art. 629, Com. Code. The sailing mate shall personally and

especially keep a book foiled and stamped on all its pages, calledthe "binnacle book," with a memorandum at the beginning stating

the number of folios it contain, signed by the competent authority,and shall enter therein daily the distance and course travelled, the

variations of the needle, the leeway, the direction and force of thewind, the condition of the atmosphere and of the sea, the rigging

set, the latitude and longitude observed, the number of furnacesfired, the steam pressure, the number of revolutions and under the

name of "incidents" the revolutions made, the meetings with othervessels, and all the particulars and accidents which may occur

during the voyage.

Art. 630, Corn. Code. In order to change the course and to takethe one most convenient for a good voyage of the vessel, thesailing mate shall come to an agreement with the captain.

If the latter should object, the sailing mate shall make the remarkshe may consider necessary in the presence of the other officers ofthe vessel.

If the captain should still insist in his objection, the sailing mateshall make the proper protest, signed by him and by another oneof the officers in the log book, and shall obey the captain, whoshall be the only one liable for the consequences of his order.

Art. 631, Com. Code. The sailing mate shall be liable foi alldamages suffered by the vessel and cargo by reason of his

negligence or want of skill, without prejudice to the criminalliability which may arise, if a felony or misdemeanor werecommitted.

Art. 632, Corn. Code. It shall be the duty of the second mate:

1. To watch over the preservation of the hull and rigginvessel, and to take charge of the tackle and equipmenmake up her outfit, suggesting to the captain thenecessary and replacement of the goods and impwhich are rendered useless and lost.

2. To take care that the cargo is well arranged, keepvessel always ready for maneuvers.

3. To preserve order, discipline, and good service amcrew, requesting the necessary orders and instruction

captain, and quickly informing him of any occurrence ithe intervention of his authority may be necessary.

4. To assign to each sailor the work he is to do on baccordance with the instructions received, and to see texactly and carefully carried out.

5. To take charge by inventory of the rigging and equipment of the vessel, if it should be paid up, unl

ship agent has ordered otherwise.

With regard to engineers the following rules shall govern:

1. In order to be taken on board as a marine engineer part of the complement of a merchant vessel, it s

necessary to possess the qualifications which the lregulations require, and not to be disqualified in acc

therewith to hold said position.

Engineers shall be considered as officers of the vesthey shall have no authority or intervention except in referring to the motor apparatus.

2. When there are two or more engineers on one vesselthem shall be chief, and the other engineers and personnel of the engines shall be under his order; hfurthermore have the motor apparatus under his chawell as the spare parts, instruments, and impbelonging thereto, the fuel, the lubricating materfinally all which comes under the jurisdiction of an engboard a vessel.

3. He shall keep the engines and boilers in good conditionstate of cleanliness, and shall order what may be pr

order that they may always be ready for regular useliable for the accidents or damages which may arise byof his want of skill or negligence to the motor apparatuthe vessel and cargo, without prejudice to the criminalwhich may be proper if a felony or misdemeanor is pro

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4. He shall make no change in the motor apparatus, nor shall herepair the averages he may have noticed in the same, norchange the normal speed of its movement without priorauthority of the captain, to whom, if he should object to theirbeing made, he shall state the reasons he may deem properin the presence of the other engineers or officers; and if,notwithstanding this, the captain should insist in his objection,the chief engineer shall make the proper protest, entering thesame in the engine book, and shall obey the captain, whoshall be the only one liable for the consequences of his order.

5. He shall inform the captain of any average which may occur tothe motor apparatus, and shall inform him when it may benecessary to stop the engines for some time, or when anyother accident occurs in his department of which the captainshould be immediately informed, frequently advising himfurthermore of the consumption of fuel and lubricatingmaterial.

6. He shall keep a book or registry called the "engine book" in

which there shall be entered all the data that refer to the workof the engines, such as, for example, the number of furnaces

fired, the steam pressure in the boilers and cylinders, thevacuum in the condenser, the temperatures, and the degree

of saturation of the water, the consumption of fuel andlubricating material, and under the heading of "note worthy

occurrence," the averages and imperfections which occur inthe engines and boilers, the causes therefor and the means

employed to repair the same.

These shall also be stated, taking the information from thebinnacle book, force and direction of the wind, the rigging set,and the speed of the vessel.

Art. 633, Corn. Code. The second mate shall take com-mand of the vessel in case of the impossibility ordisability of the captain and sailing mate, assuming insuch case their powers and responsibility.

CREW

a. Formalities of contract

Art. 634, Corn. Code. The captain may make up his crew withthe number he may consider advisable, and in the absence of

Filipino sailors, he may ship foreigners residing in the country,the number thereof not to exceed one-fifth of the total crew.

If in foreign ports, the captain could not find a sufficientnumber of Filipino sailors, he may make up the crew withforeigners, with the consent of the consul of marine

responsibilities.

The agreements which the captain may make with themembers of the crew and others who go to make up the com-plement of the vessel, to which reference is made in Article612, must be reduced to writing in the account book withoutthe intervention of a notary public or clerk of court signed bythe parties thereto, and vised by the marine authority if theyare executed in the Philippine territory, or by the consuls orconsular agents of the Republic of the Philippines if executedabroad, stating therein all the obligations which each one

contracts and all the rights they acquire, said authoritiestaking care that obligations and rights are recorded in aconcise and clear manner, which will not give rise to doubts orclaims.

The captain shall take care to read to them the articles of thiscode, which concern them, stating that they were read in the

said document.

If the book includes the requisites prescribed in Article 612,and there should not appear any signs of alterations in its

clauses, it shall be admitted as evidence in questions whichmay arise between the captain and the crew with regard to

the agreements contained therein and the amounts paid onaccount of the same.

Every member of the crew may demand from the captain a

copy, signed by the latter, of the agreement and of theliquidation of his wages, as they appear in the book.

b. Duties and liabilities

Art. 635, Corn. Code. A sailor who has been contracted toserve on a vessel cannot rescind his contract nor fail tocomply therewith except by reason of a legitimate impedimentwhich may have happened to him.

Neither may he transfer from the service of one vessel toanother without obtaining the written consent of the captainof the vessel on which he may be.

If, without obtaining said permission, the sailor who hassigned for one vessel should sign for another one, the secondcontract shall be void, and the captain may choose between

forcing him to fulfill the services to which he first boundhimself or look for a person to substitute him at his expenses.

Said sailor shall furthermore lose the wages earned on his firstcontract to the benefit of the vessel for which he may havesigned.

A captain who, knowing that a sailor is in the seanother vessel, should have made a new agreement wwithout having requested the permission referred toforegoing paragraphs, shall be personally liable to theof the vessel to which the sailor first belonged for thathe indemnity, referred to in the third paragraph Article, which the sailor could not pay.

c. Rights in cases of:

1. Sickness, injury or death

Art. 644, Corn. Code. A seaman who falls sick shall nhis right to wages during the voyage, unless the sickthe result of his own fault.

At any rate, the costs of the medical attendan

treatment shall be defrayed from the common fundsform of a loan.

If the sickness should come from by an injury receive

service or defense of the vessel, the seaman shall be aand cured at the expense of the common funds, ther

deducted before anything else from the proceedsfreightage the cost of the attendance and treatment.

Art. 645, Corn. Code. If a sailor should die during the

his heir shall be given the wages earned and not reaccording to his contract and the reason of his death,

If he died a natural death and was engaged on wageshall be paid what may have been earned up to the datdeath.

If the contract was for a fixed sum for the whole voyathe amount earned shall be paid if the sailor diedvoyage out, and the

99404181 Common Carriers Codal

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Transcript of 99404181 Common Carriers Codal