Transpo Finals Notes Ace (2)

There are two reasons why it is impossible to do away with these privileges, to wit 1. The risk to which the thing is exposed 2. The real nature of maritime law according to which liability of the parties is limited to a thing to which is at mercy of the waves. The Supreme Court likewise explained in another case that the real and hypothecary nature of maritime law simply means that the liability of the carrier in connection with losses related to maritime contracts to the vessel which is hypothecated for such obligation or which stands as the guaranty for their settlement. Thus, the liability of the vessel owner and agent arising from the operation of such vessel were confined to the vessel itself, its equipment, freight and insurance if any -which limitation served to induce capitalists into effectively wagering their resource against the consideration of the large profits attainable in the trade. EXCEPTIONS TO THE LIMITED LIABILITY RULE 1. Where the injury or death is due either to the fault of shipowner or to the concurring negligence of the shipowner and captain 2. Where the vessel is insured 3. In workmen’s compensation claims 4. That the total destruction of the vessel affect the liability of the owner for repairs of the vessel completed before its loss NEGLIGENCE PROTEST • Protest is a written statement by the • master of the vessel or any authorized officer, • attested by proper officer or a notary, • to the effect that damages has suffered by the ship. Protest is required under the Code of Commerce in the following cases: 1. Arriv al under s tre ss 2. Vessel is shipwrecke d 3. Where th e vessel h as gone th rough a hu rrican e or the cap tain believes that the cargo has suffered damages or averages 4. Mari ti me colli si ons THE SHIP MORTGAGE DECREE ACT OF 1978 Section 2. Who may Constitute a Ship Mortgage. Any citizen of the Philippines, or any association or corporation organized under the laws of the Philippines, at least sixty per cent of the capital of which is owned by citizens of the Philippines may, for the purpose of financing the construction, acquisition, purchase of vessels or initial operation of vessels, freely constitute a mortgage or any other lien or encumbrance on his or its vessels and its equipment with any bank or other financial institutions, domestic or foreign. Section 3. Mortgage of Vessel of Domestic Ownership; records. (a) No mortgage, which at the time such mortgage is made includes a vessel of domestic ownership as this term is defined in Presidential Decree No. 761, or any portion thereof, as the whole or any part of the property mortgaged, shall be valid, in respect to such vessel, against any person other than the mortgagor, his heir or assign, and a person having actual notice thereof, until such mortgage is r ecorded in the office of the Philippine Coast Guard of the port of documentation of such vessel.

Transpo Finals Notes Ace (2)

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