San Dena Coltege of Ki En ui Gentags from Feralgn Ports to Philippine Ports: 3. New Givi Code: priesar? lar b, Code” of ‘Commacren: ii) matters net regulated by tha Chl Cone © Ganinga uf Goods vy Gea Ac! sunpiotary t0 the Givi Code 3. Gurrlage from Phillprine Ports to Forsigr Forts The laws of tte country to which tne Goods are te be trnnaported, 4, Overland Tranaportation S. Clull Cade : prin ay lave Code of Commerce : suppl lor E. Ale Teantoe *atlsn 8. Chi Code b. Gedo of Commerce ¢. Warsaw Conv ntion + Sonventon for the Unification of Zesain Poles reatteg to Interne onal Bartingn by Air thant In Waraavs on 42 October 1928, ‘The agroe.nent among sovernign —eduntios orcerming tha requlation In Uniform manner uf the condrions of inornatloral varspostatior by ai In respaet Af tne documents sea fr sutn transportation and ofthe Haatiy otha carter Intarnational Transodrtation Wrranw Convention Where the plaes of dapadture and the pleco of oasinallen ary witsin ine execute mires under ERaEU? CALUN AIDEN over cha and ar serdemie”eperatons, MANOLO KEL SA-TOS cha Bate URS fov operons VAN CARLOS UESTRO we ha for nzwd lex, MAE ANGELIC TANO eg eh frst eG nn MEMORY AID IN COMMERCINE LAW L167 eqitories of vo contracting countries togardings of whether ar nol thera waa n ‘eeak In’ tho transportation or lnacsedipmant; aad Wore the place of departure and. tha placa af destination en within the tecrltory fof 8 glngla contracing covnlry, if tect Ik sa ngreed stopping plece within a territory subject to the savorelgnty, mamtnta or uitotily of another power, even though the powor Is not a party te tha Gon tion (non v. Court of Apponls, 275 GR No, 122203, 8 ly 1997) FTAA HTT, No snnetine, cartiicate, or any other form ef uihorization for the operation of a vas uti shail be ranted except to vetizens af the Phiispings or to cortoratians of nasncuations ‘organizes tinder tho Inwe of the Philippinen at Tenat slaly par contum of whose expital 8 own earch, wee th Yeo Menger Ui teas FOAM AN) un Snel bog ea i see ig i IRE det bn sitet gi gannye RIA cos! aid ayfsPe tions. sur i Rs RIF eles ‘of thie’ OAS ta tink itn punt interest" during the comargant Mihinble torn ilont, GRACE ARH TH He i ERIN ANTHANCU! O rae eer asonte UMEENE SRA EOS Avice chal lo ep ACE ETUO CONCERCION Wer aT aunak \corimenctat ust PATRCX SARMIENTO eae: Se ‘ahaa Sandoval fobs Sabres, A 840 fa, Agnes PRGe, ASH Anels, Br hye eal, Mac PATRIA ROLE OF TACHO est eae eee ee TOMANO sped ey [OYTULRY WON bsrking Hu, OIOFTROS SULT ee of envmace, ra Trea ROE MARCUEE ivuranee Iw SEAN DUTNSUCESO trnaportnion we MARICG PAR WTeiting the, Minsk Magan, Anthony Menta, Tin Santos odece nee Sh enw sev, Age Vos, Ham Rut Gee Para, 1 8%, soe eh JAN MAMUELLE REYES ep, IV ARSANIIE/Y Ue INANE sgrtibe open smo Passo, eve oe. one ae ee gpa Tevet Tatu, Cat Fath Tre, Sa haa Navae, Mes Ma, Ash nse Dy Sty Aan* 180.2009 CENTRALIZED Wan GPERATIONS $02, +7), ‘Tho Sta'e may, n the Intarest cf national welfare of dafonse, evlebllsh and ooerste vila Industries ‘and pon payment of just compensation, trar.sfer {o publls ownnrship Ubltles and thar private enterprises to ba aperatod by the gevernnient (Ant, Xi, Seo, 19), t The State shall raguiete or probib:t monopoles ‘when i.e public Interval $0. requires. No combinations in restralat of trade or untalr coimpattion shell be alowed (Art. x1! Soc, 19) The tight to ogorete i pubic utilly may exist Incaporenty and separaiely trern the ewnarenip of the facllae thereof, Cns can own sald facilkies Without operating them ay-a pubs uty, of Conversely, on ray opyrate 3 oublle tity without oviaing the acliet. wued (o verve the public. The devotion of propany to serve the public nny be dene: hy Mie owner, or by the person in control thereuf who ray ne, noce sea‘ly be tne owner tnuraol, A toraigtiur can own & Pubic uilliy (Tatad v, Gorcle, GR No. 114222, Apel 8, 1993), A contact of transportation Is ene whereby a Cortaln person of association of persons chiigate thamselves to transport persons, thlags, or “ews from cno place to unother for a fied price (Agbey wi, Conmontariag «nd Jurisprudence on tha Conin‘avclal Laws of tho Piuls. Value 1V;. Classifications: 4. Gommon or Mrivate; 2. Goods of Passongars; 8. For a fee/ forhire or Gratutous; + Land, Watusdmariline, oF Ae; 5, Domest! intur-istana/ coashiise ur International foreign PUBLIC SERVIDE ACT Commecwealth Act No. 146 As amoustod Note: Many-of the provisions of CA 140 have Loon repealed and ihn powsrs of the Public Servia Commisylon ary now distributed among le ciffe-ant governmant agencies, vir. DOTS, LTE, LTO, MARINA, FUG, NIC, LRU, NWKC, GAB, ATO ond PRA, Authority to Opurate Public Services Gonesa! Ruler No pubic sefsiee shall opuraty In the Piuippines wathuut possessing a valid und subsisting certlucete from the appropriate board, authority or agency of the govainiment tial took over the functions of the Fublio -Service- Commission, “cariteale of publc- convenience," ot = gopveniency and necasilty,* to tha effect that tna operation of sald service and cha authurlzation to do business wil promote tna publle inioreste in @ fropar and sulabls manna (See. 16, par. 1 CA148 a3 armunder), PUBLIC SERVICE ‘Sea. 13(b} of CA 148 as umended provities that the term *pubile sarriee" Instuces: + Every person that now of hereatter may own, operate, manage, af conita'ln the Phlipyinvs, For rire or compsnastion, ‘With general or limited clientele. ‘Whether nermanent, occasional or accidental, urposes, ay: ‘alroad, street relay, tracton roiway,' subway imoter vehicle, sina for treght or suavenger, or beh, wilh or vatnedt fed route and’ whatevar ‘ay bel cas b. Freight or carrier service of any class; & Express service, steamboat, or steamship ine, pontnes, feries, and waler erat engaged in ve transperation ‘of passengers oF freight or both; 4. Shipyard, marine relvey, marine repair shop, har’ or dock, Ice plant, tee teirigeraticn plant, canal, "Irrigation system. gas, ‘slociie, ight, heat and power, Waler supply and. power, Beticloum, saworcge system: ¢. Wire orwisieas commun cations system, wire oF Wiriass broadcasting. stators and other snlar public services Exceptions: Public i WMsiyy-pperated by ‘ ec ae eres Ye noted Roget gt Ben i i's 0 way a6 sivgMbketidRler cout eualvevlony bei UCU Aa os bird party agricullure, Soon Weds College of Lawchan peda Gottege of Katy service, for oparstion by the Intlar, for a Ienited tess afd for a specifi nuronse directly onrected wits the eullvation with his oF thelr farm; ond A. Those exptensly exempled py virtua of seciion 44, namely: a, Warehouses: UL neat amen vahiclee ant baneaa moved by oa sal e. Abships, excopt for ‘hy thing of rriaxinum raies for fare and (relat, 4 Radia companies, except for sates fving, t._ Luli serviens awnied of operate by the sgovssament, exeopt a3 0 rnin firina 1, Rapanivand cold storage (PO No. 9 an Buble markets (Gham bor. of fllpino Relators, In, v. Vilegas) PuBLic UTILITIES ‘A public ull Is a business or sutvien engayied in rogulady supplying the publi with rome cominority af worvis of pubsie consequence such 38 elecirelty, 948, water, wansprrtallon, elophione er talagrnph service (Albury v. Royts). DISUNGUISH A CERTIFICATE Oi PUBLIC CONVENIENCE FROM A CERTIFICATE OF PUBLIC CONVANIENCE AMO NECESSITY ‘A ope Is (saved whennvar tha Comission finds that tha operation ct the propetcd public servies ‘wil promote the publls Interests in prover and evilable manner, for which a municioal or ‘ozislatlve franchise is rot nacassn.y. On the iter hand, oper Is Issued pon Approval of ony Franchisa or privings. grantod by any political Subdision of the Palligpines ‘when In the Judgraant of the Commanion, stich franchise or privilege wil sroperly consrrve the oublic inierest (Pamz, Trancportation Laws art Publis Service Aet) visTINGUISH FROM n CPt. ‘A franchise 8 a gtent or privilege from Lae Sovereign fovar while the certificate is a form of faguintien thinugh an administenthr> ugency, LEGISLATIVE FR/NCHISE A certifente of pubic convenience Is not 2 Teguisite for the Ineutring ef liabitty urder the Clit Corie provisions which llabill.y arises from the moment & pareon er fin acte a commen carler ‘edthaut reyard 13 whether or rot such carrier has, vis eampled with tha requirements of the oppllertie ingulatory statute end Imslementing reguiations and bas been granted a CPC vr other feanehise (Loadstar Shhopiig % Gout of Angoals, GR No, 131627, 28 Soptembsr 1992), AOS or a CHEN constitites nnlthar a franchise ‘We ree ee MEMORY AIDIN COMMERCALLAWL ISS nor a won.raat, otters no property tah, anu is ¢ fare llerase of 2 pivilegs, The holder of saith Cortillcatn dec Mol Require a property rig 0 the route covered thereby, Not doos it confor sna. the holder any prnptietary right or interast or Hanchiae in ths publle highways, Revocatlin of this cerliferta deprives him of rio vested sion. Now aad additional burtens, ataration of the c.tiigata, of even tavocation or ancient thernof is raganved to the State (Lupwe v. Vilogas, GR No, 1.22545, 25 November 1968). itis a “property* and hes a considerable vatun fare! can lit tha aubjact of sale of attachment The Epc as a proparty cannot be taken or Interierat with without dua process of Inw (Cogna.Cuboo Cpornlors and Drivern Assn. v. CA, GI No, 10027, 18 March 1992; Raymundo v. Lunetn Motor 60, GR Nos, 39002-03, 29 November 1933) ESSENTIALS oPuIcran 4. The giantea must be a citizen “of tho Philppines or austlly slxty percent of which Io cewned by auch eltizans, 2. Tha gianteo must Lave suffclont financiat ‘ennaliily 0 undertake the servicn; and 3, Tha servico will promote publia interest, anct eosvanlence In a proper and suitably aranner, REFORE GRANTING A Note: ‘The evarrding prirciply is publie Inturast, recessily and convenience (Sundinng & Aino, Reviowor 9n Commorctal fas). GROUNDS. FOR CERTIFICATE 4. The holder wialatas or eontumaciowsly refuses to conply with any order, rulo or roquiation of the semnilselon (Sec, 6(n) o Pubic & wvica REVOCATION OF 8 Sr cooptnon mace a I ‘i com: lon Ee, Bruty " nose * 8 ig ty 2, Gok bia ane hy pectleular jatnemined by Tr190 12609 CENTRALIZED BAR OPERATIONS 4, Rofusing of naglecting to. cerry public mal) ‘upon reGuast (Secs. 18 and 19). PRIOR OR OLD OPERATOR RULE Bofore permiting @ new: operator ‘o tnvede the ‘orrory of another already establishes with @ cpo, the 'prur operator must first be given the ‘pportunity to axtund lis sorvise in erder to. muet public nauds Ia the matter of transportation. it {nganns that a publia utlity operator shoule be thlaided frum rulncus compelition by a‘fording hia the uppertunity '0 improve his equipment and seivice bolora glowing a new operator ‘0 sarvo In the same terrilory he cavers (Mandaluyong Bus 89. +: Francisco), PRIOR APPLICANT RULE Where there are various applicants for a public Ulity aver the same terrier 7, a conditions belag oquat, prorly in the bling of ine application for & corticats cf pune acvenianes bucomes an important factor in grantiny oF refusal ¢) curtiicate (Bataiyas Trumipwrtativa Co, v. Orlangs), Fut it olter goncitions, are not equal, ich pilerly Is not ordinarily of suficiart linporcance {9 contol the gearing of a certificate of convenience a4 the Commission Is authorized {a oelonnine which of the oppteante can best rmigot the raquirenants of public vonveniance (dy fos Surdos v, Pusuy Trans. Co) PROTECTION OF INVESTMENT RULE One of tte purposes of ihe Publ ¢ Survice £2 Is to protect and converve Investments which have already bacn mage for that purpose by public service operators REGISTERED OWNER RULE The reysierad ownor of a certificate of pubic convenisiice Is fabiy to the public for tha injulies ff dainages suffared by third porsons caused by tha opurhiion of said valiicle, even though the tame had been transfarrea to 4 third parson. ‘ho registered owner 6 not silowed to escape responsiolity by proving Wut a third person is Nk? ehal and ool ovr, Rowson: Ik would ba easy for him, by collision willy others. or olhurwiaw, WS eanster We espor-jbiity 19 an indafinits person, oF to 91.9 \vlio possussas 10 property widh which te respond inanenaly for tho damage or injury dorw (Ere zo, oral v, Jogta, No, L-9606, 30 Suptonsbor 1987). The registered owner iv the lavidul operator insofar as the public and this persone oe concained; consequently, i 1s directly ard priaariy "esponsibie for Ma consequences ef Tis, ‘operation. in contemplation of law, the owner! i San Beda Cellege of Lary ‘oparetur of racard is tho employer of tho driver, the actual operator ,and employer being considared as merely’ its agar’, The same principle apoiies even If the registared owner of any Vehicle does not use It for public servic fEquitadle Leasing Cop v. Suyom, GR Ne 143360, September §, 2002), or otherwis stated, to privately-ownad vehicios. REGISTERED OWNER “HAS AGAINST VENDEE/TRANSFEREE ‘A vegislered owner who. hav al transferred @ vehicle nay recourse to a third-party ccornplaint In tha same aation brosight agalnst Nim {ig recov2r for the damage of Injur’ done, against he vendee or wanalerae of he ' vehicle (Wilenvava v. Domingo, 438 SCRA 485, 2094). KABN SYSTEM ‘The kubil systera Is an acrang2mant whereby @ person wna Pas buon grunted 0 certiicate of favblic couvenience allows alher persone who own ‘motor vehicles to operule under such license, for fa fee of parceldage of auch eamings, Atnough tha parivs to cvch agreement are not oulrighty penalized by Jaw, the kabit system Is lavarlably Tecognized as being contrary lo public polcy and Lierelore vold and lnexistent under Art, 1409, New cWvl Cade (Lim v, Court of Appouls GR No. 125417, 16 Jan sary 2002). RECOURSE Efforts: 1. The transfer, salo, lease or assignment of the priviage granted Is valid between tho ‘contracting partles but not upon the public or thie parsons (Golsan v. Alday, No, L-30012, 30 Sopiombur 1987), 4. The repisered ownar is primadty tale to ai the connecuences fowing from the operations re ‘fn eat aun se Joi 4. Application Ul fy pat! dol:(_ Ba Bene Castes of Mat cont recaver for the netuel soar and the Teter cannot ablaln wranster of the vite *6 Himself, bot boing In part calicto. (veya Mivkotiy v. IAG No, L-55810, 9 March 1907). £, For tha batter pratdetian ofthe putt, beth tke tegistered owner ard the actual ownor are foirrly ans overly ible vith the driver aanwoargn Trmspnation Co. CA. No, Le 25292, 29 Noverntyr 1969), 8. The determining factor which negates the evistonee of Keuit Systern Ir the possession ft tho franchise lo opertle wad not the Tesuance of una SSE 10 Numher for bath ous lings (Raswwng Yransi! v. CA No, L-57499, 7 Jeruary 1997). Requisites (oF the Inapplicublity of the kabit evstom ‘When pretther of the parties fo tie parnicious: Kab wyatora Is being he'd ele for damages; 2. When tho ense arbre from the ragiigence af nother vonide In using ths public rond to fuhom ne raptaeataven or isn reser tation fe rogords ino ownership fd operation nessan gar jeapuay was made, 3. nen the ding public was col bothared ot tnconvonienend at the vnry east by the Weaat fanangament (Im v. CA, GP No, 125017, 18 ‘Janvsiy2002), BOUNDARY SYSTEM 4. The driver does not “ecelve a fived wage but guts only "ne uxcess of the receipt of the fares cellected by hin over the amoun he pays te the Jeep owner, 2. The gasoline consumed by te jsep is fer the account of the driver. ‘Theso to featives-are not culficlent to withdraw tho reletionship between the ownnr anu the driver from thet of amployer and emplo;e0. The: Jeepney owner I$ subsidiarly liable as emsiayor in aceardanes with Ad.102 6! PPC (Maghon \ Bomardo, No, L-16790 30 Apri 1963). Indood'to evant fram tbilty the owner of 4 public. vehlela he operates funder tha Froundory syatam* en the grcund fat he 1s a rears lester woUule be nel on'y to abut Magrent Violations et the Publis Service Law, but elto to place tha rldieg public nt the rvarcy of reaklens find trrespanaible drivers (Spouse: Humordoa v. Spounes Gols, BRN, 160886, uy 20,2704), «Tha CMH Agrenautles Beard |s expres! wulhorized by RA No.778 {to Issu0 @ Tortpornty operating primi er Corte ato of Public Gonvanien:n and Necaxslly (PALLY, CAB, GR No, 1,9524, 26 Marah MEMORY. AID IN COMMERCIAL AWW) 291 1997). + NIG exereleas regulatory power aver GATV cporators to thy exclusion of other bodies. Howaver, the physlent renktios of constructing CATV aystam ~ the uno of pote atrecta, rights of ways, the founding of atructures, and the. parceling ‘af latga regions ~ ahow an LGU a cartain Aegrss at regutation over GAT oparators., But since a generel nw ‘nigndates: thal the reguation of GATY parations shall be exorcised by the NTO, an LOU cannot ennet an ordinance for approve a resolution In vlointinn of the ani’ Jaw, LGUs must recognize Ihat technleal matters coneeming GAT operation aro within tha exclusive tagulatory power of tha NTC (Ralandas CATV v, GA, GR No, 128810, Guptamhar 26, 2004). ‘Tho. Ieglataturo has delegated to the defunct Public Sevier Commission, and presenily the: LFTRB, the power of fixing rates of pubhe services, Sut Sowhero under the provisions ftw ‘aro the rogulatory bodies, tho PSC and Ler alike, wtherlzed to dologate that power tna common carrier Mike transport operatcr, « inet public seriea (KMU Lmbor ¥, Garcia, GR Na. 116301, Docember 23, 1984). ORE CRC A t's Shite i ARAN roster GP tqariizamanly ap WIE rant hy } 2 a 3 o orvi get ian prea fe provid fe unnals Impropr Protunn pewvicn furnhahne aioe! ya Commiation392 J2u09 CENTRALIZED BAR OPERATIONS _ San Bed4 College of Has ‘Act, upon appenl or othernlsa (Sv2, 19a) Publis =» Thy following are" NOT considered Service Act, fapsungers, end aro anlled ty ordinary i aligence only: | 2, Ore who has net yet boarded ony part of a vebicle rag ardlaus of whether or not he hhas purchaaed u tccat; b. Ono who remains on a cartier for an ‘unreasonable iengln of time a:tor he han been alfurded avery safe opportunty to charger, concern aught : 3. Galtny vo of stndartu eng | pubic urvoe: ©, One who hee boarded by fraud, steath, | duslfications; * | 2. Bequirlag ‘of decolt; 4, Eelobllsiiment uf rules to | opercto — to 4. One who attempts to board: 8 moving : waoure uncuredy Of all mate furnleh Vehiclu, wthough he hes a ticket, unless . ar et “moan {ng ailampt be win th knowiedge and : 6 tuance i orca eagltig | 3, agureg. pub sonaent of the carer beeinnines ang |S oraleen 2 Bay ©, One who Las bewided a wiong vehicle, oh Imointenanes of extenslon gt | expenses | ot har oven prope ty infcimad of such fact, : ‘ral etter: sand on alighting, i ajured oy the cari } 8 Ruy rcatlon, cr moc'itication | 4. Yalwation of 1. One who rides any part of the venicia 1 erePC or 4PCNs preparil e which Is unsuitable! or uangerous or i 7. “-Suipenson uf cc er pubie vias; which he knows Is nit designéd or t OPEN, owept when at ie | 8, Gxamineilon and Intended for passungers, : nucaniay 10 ved autout | en a een fn. riots tumagy o* | sneasunng CARRIAGE , Sees ecaperses on ere | mt 6 ks Any ‘parson, partrrehip of sorparation ; then! “3 days. tay. be). Ona or spre who délvers the goods to the carer for fLdured. pio to tha herring | trp in ttkerios wuansponiation and pays the consideration un (Munzariat ¥. Ausoja, Nov be spocified In the of on whose behall payment is mado Thy B08 a Aust | euros ‘Wo'es “uid Casas on tho Law on e 1908), 7. Moitorm Transoortetior and Public Utiltlus, hes iecauning Timotwo B, Aquho & Kanon Paul L hysten Homando 200400) 8: {ueristing v. Gartlor 3) annual r@ports; Cons: oaks 4. Compete & Gonsigneo ys 5 ‘cumplianee wih ; Shioper or eny 3° person, natural or a4 ee lane and | jutidieal, 19 wom the goods are to be a | rogutations | ulivored (ibid, te pe el a 7 i i a Rane My jyngenMagra gary eral poeele stg a 1. GARRIAGE OF PASRENGERS “Sie tus ae vin: 9g HH %. Common carrier Anon LE OAT CHP LAP : Faron eoforatons, ime of Chaliiecniectun rte By assoxlatons ongagut ln *he business ob en'tylng oF Wansporing jassengers or goods “r both, by tand, water, oF aur, for compensation, olfuting thew services to the public (Art. 1792, Civil Soe). b, Passongor (One who travels tn a puiic conveyance by vinuy of ecntract, express or iniplizc, with the earrier ug 10 thy payinent of fare Or that which is actapiad as an egrivaicrit theraol (Vila, Ca Nance y. | Manta is aie Bin Rallis 1 No, H3tR, Jan. 30, ible CONN SAID g Biv, CA, No. Le "oan race, 22 Dede? stothemearsot NY transporting, us fig x WTDby land, water ora i a iif ayo Hh a3Arete Coleg at Bay (First Phitipplng Industria! Corporotion vs, CA, GR No, 125810, 24 Docombur 1997). Itis nat nocensary thet the carlagr of goeds 0. urtons be undertaken rogularly lo he considered 8 1 common Aarvor. Thus, the character of Belng 2 comman ctetter It ol aarad By chu fret tel the cartiago cf gonas wos periodic, occasional, enisodte of wischeduled (Loodsiar Shipping Co inc. v. GA, GP 134021" 28 Sept, 1969) The fof that t nas a finited clientele does not exclida Irom tha dotiniion of common cattle. Cre fs engupad in the business of tcansportng nalroieum products for hire 8 a publle employmant, Il undertakes to ca:ry for al parsons Inctfarently, tnat Is, {0 al) pereona who choose to employ is gerviees ard tranaport tha goods. hy lars! for compentation (First Philppina tnlustriat Gornorstion vs. CH, GR No, 125048, 29 Da iombor 1997), Algo 8 cormnn canler need nol hava a fixed and! publicly knewn route nor dees i neva, to main;alty lerininals 97 Issue tickets (Asta Lightoraga and Shisping, Ine ¥. CA, GR No 447246,19 Aug, 203), SUMMARY OF IMPLICATIONS ARY. 4722 ‘The character cf boing-a commen cartier in not altoceu! ragarsings ut Whether it is the principe or ancillary business: 2. The existence of a cevtiicate ef public convaniener . Whether it ‘ie ounthictes im a regular oF occasional manner; 4, The means uf transporting used, so long as it aby tand, water oF alr 5. Vinether it ls avalloula to a gener! oF Fmied elienteia, 6. Whether ft has a designated and publicly known route: 7. Wirothar it @nintnins terminals; 1. Whether i issuus a ticket, Note: A travel mgoney Is not @ common carer. ‘The dervices of a travel ageney Include procuring Uickete and faciitating travel nuimlis or visas as, well 0 booihg customers for tours iEstoin Crisostoro v, GA, GR No, 158934, August 25, 2003). PRIVATE CARTIER One whieh vithout being engaged in the buslaers of caurylng ax a public einploymen,, undariakew to deliver good: or passengers for Companaatlan (Home Insurance Cov: Anarienn Stoamship Agony, No, L+25%00, 4 Asi! 1968). MEMORY AID IN, COMMERCIALLAW 133. N Caw on obiigetionn and reontrocla ‘beet 10 Stain eguiation ‘wih parle br groupe cn Holds Pinal eit for all Ingiageminntal ee anon a Extenorcinary diigenco ts | Ordinary soqulre lo hinence Is Prove. eeinerdinery | Caro fortulo, Avi, 1174 Gilgence and AM 1734, | NEC Nat Tee TA TLL DEALS NOT NT aries rnay rot agfea on | Paras may. lint Iho Fisting tne carmar's | cao labliy, previded Hobiity —excopt hon | IU nok conten’y te In, povided ying 1. He must be ongiged In the business of a ce SOURS imber 12907) STAM A that the {ul a geno nwo: Ea GR No,194 12009 CENTRALIZED DAR OPERATIONS CONVERSION OF 4 COMMON CARRIER INTO APRIVATE CARRIER A charter party may traneform & common currer Into a private cartier, Howaver, it must be a barebout av damisu charter where th charterer mans the vessel with his own people and bacomas, In affect, thu ewner for the voyage or Sorvice stipulated (Calien Phis. v. Supicio tines ). SOMMON CARRIER DISTINGUISHED FROM TOWAGE, ARRABTRE AND NTEVEDORING Towaoe . ‘One vessel is hited {0 bring uncther vessal to anather place; rafars tu u survlce rondere: to a wossul by ‘towing for the mere purpose of expediting her voyage witheut refurence to any ‘Glroumstances of danigar. ‘Tha oparator of tha yugbout :annet ke considered @ comnenun eartie, A leg and its owners isi observe ordiner: Cliganca in ths’ performance of Ite obillgation. Undor @ contract of tewago (Liaor Sonior & Co.'s Sucvosvors v. Lu Conmpuria Martime, fo, 1962) 8¢ Avi 1906), + The exercise of ordinary prudence under a conliact of tewage mesnu ensurlig that the tugbcal is frag of mechanical problems. While Adverse weulher has clwuys baen u teal {oat ‘to maritime commerce, the eect that ‘could have been dor was fo ensure that tie {ugboais would be able to secure the barge wl alt times during the engagemont (Cargoiit Shipping, tne. v. L. Acuario Markoting Corp, GF to. 146429, 27 Juno 2006). ARRASTRE The functions of an arrastee oparuior nave niathing to do with tha Wade and tusiness of favination, aor to thy use or operation of vessels. No {6 a0 ‘bitorent from that of a depostcry or warchouseman, + It Is @ public utility, discharging funct ons which ary hoaviylavosted wth publi intarast Nature of businoss and lability 4. Similar to a wareteysuman (Lua Kien v, Mania Railvond, 21. SCRA). 2 Sinullar to a comnan cuitiar (Aovtncn Motus ¥. Prince Line, No. toi9804, 29 February 1960), 3, Solldary liablity with the commen earrioe, Note: tn order that the urrasire operator may be hold fiable the conelgney must prove that the dariage wi $ due to the negigenc2 ong wile the 99008 ure in the custody of tir crrasire operaicr a San Beds College of Law eeoeretne ee (Hartford Fira Ingurance v, E, Ruzon, Inen, No. Le £25362, 29 Dotobar 1667), Tha legal rolaticnship between the consignee and ‘he arrasire operator is akin fo that of a depositor ‘and warshouseman. Tie relationship between the consignee and the cammon caicies Is slnllar to that of the consignee and the arrastra operator, Sinca itis tha duty of the arrasira operator 1o take 0c care of tha goous that are in ita custody and {o doliver them i goed concition to the ‘consignee. such respenalbiity also devolves upon, the cattlar (Flravnan'y Fund (isurance co. \, ‘Motro Pout Survica, GR io, 89415, 24 February 1990). STEVEDORING The function of stevadores Irivolves' the loading ‘und untoading of:coastivise vesvels exling at tho port The carriugo of gouds from tho warehouse or pier {o the Holds of thu vesaol (Chior of Stal v. Cir, Nu 21608, 14 august 1987). + The (orm consists of the handing of ergo ‘com the hold of the sh'p tu the dock, In case of plorside unloading: or 10 n barge, in case f unloading at sea (Anglo-Fi Trading Comp. v. Lezare, No. L-S4968, 2 Soplomber 1983). + The leading on the ship of outgoing cargo is ‘1s part of stevedering work (Ibi), +» Duty to accept the goods; + Duty to daivgr the goods: and + Paty exes aa aig cence, a ara REE TE PG, pe! ii ed LY a partigalart Ay utp vin: runt grate a icattatirs ublic tere Bala Gpericoops re Bel ay ath (4 baker, totus oat fins Sesion sind ee us df 3% volily ep wes forte are Meets fer explores, * Goods ay fit Insportalion;eon Made Golteue of Lay 4, Control ands ot tleyal goo: 5, Goods ate Injudous tn nealtn, €. Good’ wil be exposed to untoward danger tike floed, capture hy ennmies ont thal 7, Goods tke fvastock writ be eypased to diner ses 8. Silke; and 8. Falun: 16 Conder yonds on time (Nalos fond Cages on tia Low ao teanspartotton and fbb Uillties, Aquino & Homard. 20040). In case of vartingn by tetemy, tho carder ts fevemplad trom labifly If carriage ° insisted pan, by the shipper, provided its vblecsions are s's'ad ny Eve bill of t4ding.- 8, DUTY TO DELIVER THE GOODS Not only to transport the good safely but to Gellver he gare to the erson Indieatxd In the bil of zing The quod should ho vellvered to the coatignee of any ather person to whom tha bil of lading was valu'y ransferred or nagottated. gste See sonra att be [vn n set | Set and. te Kable for y tino. which shalt Say delay, ro inatier bon | daperd en the Tales may have | espocted date of arisen. factval in tho. bt of Frais or an tha nature | f RATIO: Bxeause A I8| of gorda. resumed that the cartor 3 [right have provided 9 |2 Carrier is bound, tg Comtageney fof auich deloy | fort rd tham in cho 1 fenivcd, wf, vA, GR No. | wing ont a” tie same, er aurek 1902). | or arolar goods whied frermay. mete (0 Ine tole af Felony (Mt _ Sea Cogn of Lact Commerce). Oftkepertnd Rule = In tho shsencu of 0 fepecia! coriiract, @ carrier ia nol an lnsurat paint delay In «he traney:orintion of goods. Eftoole ofdainy: S Extunasia dala - Eutpends and gonerelly eons not eniinate the coniact of earriage. When tho ceute {s renioved, tho master must rceed with the vovage und make detvery. 2, The carter gall bo mave Mable “sae yossel or vehials fs un. ersenabiy dated. corttage _niotely MEMORY AID ity COMMERCIAL AW. ster somncing duly bound {0 avorsise stiaordisary dflgrace 4. Nabeat cisaster shall nat feo sis corner fhom retqonsibilty (04,1740, Chi or) oh 5, dey 1s without just eaug9, the coorenet Hiitlng the conmen carrier's tnbvity tannot va avaled of In cate of fons fioterration of the goods (A. '747Ciah Cock). C, DUTY TO. EXERCISE EXTRAORDINARY DILIGENCE inquiry may be made as to the natu of pasnsngar.” baggage, but beyond thls eensitutlonal houndarios ao civerviy i dungat of heing tensjressnd (Nocuy” Lagiina Tayatias Bus Co,, No, b-2972% 24 October 1989), Note:The above doctrine Is not applica to vircrats buconuse of Section o of Antsnhivskitta lune or RA 0435. DURATION OF LIABILITY Fhe duly starts from tho time the goods ts Uncondltonelly placed |1 the ponestion of, uit tecrtund 3y tho c3eler for transportaian, crt the mine ate delivated nelunlly oF caninelively WY the carrie to the consignee or fo Whe Parson whe fra the right to receive thern 1 auras tin ft Torco and aifect even wire they are winenel Mrlonded or stored in transit unions the shir" oF Gunes has mada uso. of he fight af stonwNe fanant, B continues to pa operative win the fpoodls arm temporarily unionsied or stored flanelt and exlats ever during the nie the Gard ara stored in warahouse of a cariioc atthe place OF destination “unt tha. consignee. hina penn ean of ho aro goes nn is rontonnslegopeoctOh(hy, Materntteratayyene 1 thes sane ie hot ive SF ang ty NO 7 ae we ; ie not Lisle HB en " ae uphfSgaen and couse mos fallure of 8 obligation, ‘hurne.n will vevl is396 12009 CENTRALIZED BAR OPERATIONS hI must £4 unposalbie (o foresee the event which consiivtes the ceso fortuto, or if foresaen, it must be impossible t2 avold: % Occurrence must be such as te render It Impossioie for the debtor to fulfil his gbliyation in u norraal manner, 4 Thy obliger must be free’ from any Larticiation in or the aggravation of the Inlury Tesuiting {0 tho creditor (Revlower on Commecvial Law, Surdang and Aquino, 20960); Tre natursl disnster ‘must also be th toximata and only cause of tha loss (Art. 1799 Civil Gude); £ The common egiier miuct gxarsive dus ligonca t9 pravent or minirize the loss before, durin of ater tha oceurrance of the disastar (49) and) The common carrur nas rot negigantly Incurred de'ay in wensporting ne Goods (Ant 1749, Gv Code). Note: Fira Is not sonsidured a naturul disaster 9f Salamily as Mt urigey aimost Invarably from, Som act of man “Bustorn Shipping Lites inc. WAC, ER No, 94154, 10 April 1991). Mechanical defects ary nt force méjeuna if thy vamy was dissovarably by reghiay and adequate inspections (Notes and Cases on {ha Law on Travspoitaton and Publi Uiits, ‘Aqui & Heriando, 2004 v4). A fiw blowout iv not considared as a fortuitous event. There ure_human factors nvoivud tn tha eiteaion (Yosido ¥. CA, GE ‘No, 11°08, +7 Oslabur 1997). Hamiy soas and rains are not caso fortuito, but normal eouwruncas tal an o2eun yeing Vensel would encounlur (Hastom Snpoing Linas v. CA, GR No, 415, 30 Aprl 1991) 2, AGTS OF PUBLIC ENEMY Raquit ites: 1, “Wust be the proxinaty and only eavse of Ww logs; and b. Exerise of cue ulligence to prevent ot lw thu lass Luluta, during or after at causing ig luxs, ieterioration or e atruction of the uous (Art, 1738, ibe), 3. NEGLIGENCE OF THE SHIPPER OR own @ Solv and proxininin cause: abvolute defeiso : b. Ceniributory: partial defansy (An 1741, icy 4, CHARACTER OF THE -Goops oR DEFECTS IN THE PACKING OR IN THE CONTAINER Even ifthe damage should be ceused by the inherent detuol character of ire goods, the ‘Sommon carrier must oxercise due dilyunce {0 forestall or lesan the lose (Art..1742, toi). The cecriee which, kaowly the fact of imnproper packing cf tha geacs upon ouiny abservition, ail acseple the gues ‘otwitstanding svch cordon, i not releved of iaby or loss ar Iniry resutng theret-om (Soullarn Lives, lnc. ¥. CA, L-16629, onary 54, 1982), 4, ORDER OF. ACT OF PUBLIC AUTHORITY Said public Wulr erty must hcve the puviar to Issue" the oraur (Ard 4749) bid) Consequeity, where the officer acts without {opti procuss, the commen varrier will be held labia (Ganzon v, GA, No, L-“8757, 90 May 1908). : Nota: Tis Lat Is EXCLUSIVE. If not one of those snumerated defenses bs present, the carrier is labio, ‘ Hijacking Ip not _amung the enumerated exempting ckeumslance, Thus, tne common, Carter I: presumed to be at fault or to have ucled ‘negligently unless thace is proof cf extraordinary ulljence on the part of the common carer Under Art. 4746 (8), @ common eariar ish forponsivie even tur acts of strangers like thi of robbers 28 ‘COpt whore JAleves OF r sbbers acted “wlth grave or keslstble threzt, violence or furco."(De Gveman,-v, 2A, L-47822, Decombor 22, 1980. ty to Febsah vd BUiribse io anata vodbe OF Lavy + Yeh topchesare-s} ge enya feat Rigg i ee a Cid Hin Bedq College of Yaw_Aign enn College of Hain Injuries suffered wy bonding poesengers ronuting from ‘he swiden abating up oF ferking. | of thot tonuaynnces » (Onrinien Transporation Co. toa. v. Grvrt of /prea', GR No, 96882, 7 Setob. 1991). he duly eins fom the moranat the person who purchated the ficrat or oven parents Ninself at the proper place and in a oruper manner fo bi transozried, having the bona fide intention 10 ure the facilities of the carrice (losuse Vio da Nyara, at al. v. Tho Mui Rallrond Company, CANo, 31731, 1966) ‘The duly continues until tie pu asenger has, nflee reaching his dasinatiun, safely allghtod form the carer's conveyance of has had 0 srasanable opponunity to save the carer's proinlses ard to Inok alter hie bagguce. and ‘prepare for Nig Uasncture, The duly of @ conimon eatrlyr to provite safely to its pascongers uo «biigates It not enly 6tting the course of tha trip, bul for so Tong ne ch3 posaurmars ace “thin its premises ‘and where they cught to te in pursuance to the conkact of varringe (LATA v. Novidad, Gt Nu, 148800, 6 Fabruary 2002). A common —earint —cwwuld exercsa extrasrdnary diligence evn) ae 10 non-paying ossengers. E, DUT? TO TAKE CARE OF THE PASSENGERS’ BAG: fatiganen af 8 dspesiory lerainny eigenen Eee TAU LAR ah hb SEITEN OF iis Pee) li Pint Fa The _pilinury’ defense Ie the exercise of EXTRAORDINARY DILIGENCE, ‘Tho cortler Is Hable for the 01s of its employees. ‘The cetflue cannol escape llebllity by claiming that Ieexetelsad due dligaace ky tne election and supervision of employnes. IIe no defense that the emplyree acted beyond AMORY AID IN COMMERCIAL L/W] 197 the scope of his Authority becnute the Fitting publis I1 Rol evpectod to Inquire from time to tine, afro thay boat the enreieg, whether oF nat tha evar fa adtiny within the scope of lik nuttorlty ‘ard otmarungs the existing rulas anil regulations Foquited af him by management (Marctan v. Moricts2a, Mo, (+2471, 30 April 1966), The negligence of tho carrler NEED NOT bo the sole cause of tha damage or injury (2 the passengarcr the goods. Tho concurrent negligence of # third serson wll not exempl the common carrier from responsiblity, Hiahiilty et 8 Common Carrer for death or injuring to pnarangars duo to acts of ita ‘omplayens and othor pasrongors or strangors rE He LS LURAY empioved tutt boon | by Art 1713 of ho Chl ‘a the tina of the act | Code Pilganea in the golaction ancl supervinen uf fempoyens under Artiely 2180 of tha Civ) Goes cannat bo Interpasad as a dainoae by the common carrlor hecausa the liabiity of thn « wtler arieos from the bronch of the contract af enitinga, ‘Tho defense under sold arilcle Is appicabin to Jelg,under Ait, 21,°8 (Dor AENQENDABZ 7 March es yg ss RODUBESE on ate slat. ebob dle tating na aL ie v Tabla to a nngllgant 1. has heen qiosey Prodi v, i 929)1298 |2009 CENTRALIZED BAK OPERATIONS negigant whora he shoulé hnve bgen eware of it In tho roweonable exarcino of due care eud had in {fact on opportunity later than tnat of tne olaintt to ‘avoid an accident, Piinciple of *Lasy Cléar Chance" applies in a sult Benwgen the owe One divers cf colliding vel IK doos NOT upply where a passenger demands tevpenslbldty from the carrier to enforce Its ‘contractual obligation, For It would be inequitable ta exempt the neghgont driver of the Jeepney and lis owners on tha ground that the other driver was Hkowlse uly of negligunes (Pni, Rabbit Bus Unos.r, JAC, GR NO. 119064, 7 Augus! 1908: Tu ¥. Airlisgade, GR No, 196060, 1 Soplembar 2004), * Dectrlne of Last Clear Chance CANNOT likowisw ‘bg apelied in calision of vussell. hocause of Art. 827 of thu Code of Commerce (Noles ard Cusos ‘un the Law on Transportation @ 1d Pubic (titles, Aquino & Hernando, 2004 09). ‘ASSUMPTION OF RISK Passengers must take guch risks snevient to the mode af raval Carrlurs aro NOT Inwurars of tho ves of dhol: passongars, + Acoritnan cuitier dus avi give iy eansert to Yeoome an Insurer of any and all risks t0 passsingere and gouds. i merely undertake to pertoomn eartain duties to the pul law imposes, and holds iisaif lable for any brauch thereof (Papi! v. CA, GR No. £2469, Dacumbor 22, 1903). + Thus; In alr travel, wdsorsv weather concitions ‘of extreme climatic changus arc soms ol te perils Lwwolvad in ale aver, the conswae ico Of which the guayengor must wssunie. or epost (opon Allings vw CA, GR No, 1786.4, 7 August 1996) + However, there Is no wusumptlon of fis. by thy pastenger wien thy common sarrier folod to exercise extraordinary diiyence, Thus in the case of Colas vs. CA (GR No. 122038, 31 May £000) the Court held that them wai ne such assyinption of isk whare + thy cater was. fod to capacit wed the passenger wise given an “extension seat”, 1 ep Ge 4, ‘The chipper Is also obliged to exercise DUE. DILIGENCE in avolding damage or injury. 2, Wit ragpect to carriage of passerge s, tht as Su Beda College of Law sald ‘passongors aro lkevise bound to ‘observa DUE DILIGENCE lo avoid injury. * The contibutory nagigenca on the part of the pussenger te NOT a dstense that wil excuse tho Carer om Habilty, it wil only miigate, such Hablity, HOWEVER, the cantar may be able to prove that the only eavee of Uo oss of Ihe goods Is any of tho (lowing acta of tho ahlpper ‘i falluro of the shippar to disclose the naturn of the g2o 3, improper’ marking ..or dieacton av to ostinalony and 3, improper loading when ho _ussum.a auch responsiblity (Frarclsgo, pp 77-81). ‘Tho shipper must likewise sao to it hat the goods ara properly packed; alherwisa, ilablity of the anier may be mitgalud or barred depending on the elrcumatanese. Tog matter of quantity, description and conditions fof the cargo Inside the container is the sole responstbilily of the shipper, unless there is ipulatior to the contrary (US Lines v. Comm of Customs, No, 1-73490, 14 Jvne 1987; Royma Biokerage Vv. Pal, Konia Assurance, GR No. 93464, / Octovur 1991) GERRARD TDL NTT REQUIREMGNT OF EXTRAORDINARY DIUGENCE Rundition of service with: the greatest skit! and uimosl foresight (Oevao Steveuora Co. Fumandoz, 64 0.6. No. 8, 1957). CE fusioe Sly esae ‘a'special pyrite 1 we Caniar's Fa cegiee of diigence extraordinary with respect to g ee en Titca ollege of Paty a. That the #tiputation be inv ey toth peries fb. TAAL thy alipvlation 09 supported by a uniuabia edasideration other thar the aenvine rendared hy the common carrie fo, That whe alipulatica: bn ranaonable, Jue! ‘and not contiary tO law (Ast. 1744 Civ Cor. Ning shaned BUT the partien cannot atipviate thet the ‘cartiet wil nel exercine aay diligence In he custady of goods, Note: Wile the contract of car‘iage xed nat fhe In wring to be antorceatie, any slloviation himiting. the ecttinr's liability ‘Tos to be to virting to be leguily enforceable, fe Passonyors The reeponstatity fo observ extraordinary of uimoat digente CANNOT ba stinpensed wh vr lensened trough stipulation or pesting of netiees (Art, 1737). EXTRAORDINARY DILIGENCE IN C/2RIAGE BY SEA Warranty of Soavroithinasa of Ship Extraordinary difgence require that the ship ‘whlch wil frengport the passonger= and cons 18 seaworthy (Trans-Asin Shipping v. C%, GR No, 410426, March 4, 1996). ‘The cartlers are dewmed to ware scoworthinass of tha shin. Th: failure of a common. carer to maintain in” seovyorthy Condition the \exse! involved in itt contract of carriage i 9 clear breach of iis duy prescribed in An. A795 (Caltex (Pils), ‘nc. v. Suipicio Lines, GRNO 191166, Sepi. 30, 1999). : Impliedly the _shippars of (oods.ara.nol expectad to Inquira Into tro vosta's seavatthiness ard conyplianes wh ft naetime laws {Caltex [Prus.) Ine. v. Snipa Lines, ibid). ‘The unsusworhiness ca be establisned by the faet that R did not withstind the natural and Inovitt bla ection ef the fea, ‘The ship must Net be or'y seaviorthy but it must dina be “earyewarthy", Tne sip must ba ev festent aterehouse for har cA90. “the vossot must be eusaualely oguipned and properly manned, Presont ition of ecrliiester not auffisiem te overcame of seaworthiness I Uo prenunptian of MEMORY AID IN COMMERCIAL LAL) 129 negtgonce (Dnisan Transport Lines v° Gonet of ‘Appauits, GR No, 127897, 2004). No Cunrlondhiy Duty to exeeoine due dligence Includes the duty to Inka puissennera of cargoes that are wit the earryine tapncity of the vassal | (Nryrns Wavigntion v, GA, GR NO 110398, 7 Novwsnbe: 1907) EXTRAORDINARY DILIGENCE IN GARIUAGT BY LAND Condition ot voticio : Owners s0 roquired (6 maka aure thal Yhe voniclon they ate using ara in good order and eondian, “thin duty lo oxareiae oxtmaordinary dilganue vie roquiras tho enetler to purchase avd lise votele parts thet are not dlofective. Complianen with Traffic Rules In casas volving broach of contract of envriane, proof of votation of traffic rules contiis that he Carne talnd to oxerclss extraordinary dliyoner. ‘The entlee Is made able and wit net evercnme tho presumption of noqilgnnes if there In violntion of lal rulos becaure extraordinary wlkitnee Fequiros eamplionce with traffic utes and feguiations (Notes and Cases on ivy Ly en Transporation and Publis Utilities, Aquind & Hernando, 20040d). BILL OF LADING Tho writlen acknowiedgmant of receipt af gocits and agtnement fo transpnrt them to 0 spacific place to.a prraon named of to his orcet ‘Thrae Fokt Functions of a Bill of Ladi ype eae By Aicnhfther pares vn Ni vitae onieaet, seas a for tin Ineuronon facing Ine, io!= 200.12009 CCNTRALZED BAN OPERATIONS ‘evidence of tha contract baween the parties lace It contente shall decide all disputes which may arlsa In regard to thelr execution and tulliment (Ant, 369 Gude of Commerce) (Pores, Transportation “Laws end Publo Soivice Act, p, 73) Riess 1. Ais not indispansubla for the creaticn of a contract vf cartlage (Compania stoma vs, fusuraige Compeny of Nouli Amories, No. Le 18965 Osiover 30, 194} 2. Amiguily is constuied. apairist the conier, he contract being ong-of adhesion. (Phifpone Anaaiican insurance Co, tna, v3, Sweet wlngs, Inc. af af GR No, 87434 August 6, 1992) 3, Tho conulyna, although the lnswument is ofteniimes dravin up eniy by the cansignor and curtier, becomes bound vy al, the wipulations “contained togrwin by making a lait for loss en ther busts of suid bil of lading (SvaLand Sorvices Ino, v3. IAC, GR Ho. 75118 August 31, 1960). 4. The igo of a purty to radover for lugs of shipment consigned to hin under w bit of lading yrawn up wuly by und between the shipper und the certier, springs fron alther a roiclion of agancy botwoen him and tne ahipurt, of his status us stranger ‘a whose favor Lome stipulation ty incae in said contract (Stpulation pour autull, aed who became a party therety when he demands fulfliwent f That sivulation “Art, 1414 (2): Mendoza 1s. PAL inc, SR No, 3678 Fobrsar” 29,1952). 6. Acceptance of the bill of lading without dissent raises tae presumption that all tha terms Uviuin where brought ta Wie knowledge ef the shipper and agrend 10 by him and, in the fabsones of {rad oF mistakg; he is eulopped from theresflar denying thal hu assented to such tuums (Noles and Casus or. the Law on Trunspastation and Bubihe Uiitivs, aquiny, T. S Hernando, R.F, 2004 ad. p.261). Kinds of Silt Ladiag 1. On boa. d= Issued when the floods have been Betwally placed aboard die hip vkh very featonable expaciatlor, We the sfuprient Is fag gunu as on ils way. 2 Rocolved » stains that tie goods have bean faceives for shipment with oF without vpacilylcg the vonusl by which the gods ore 9 08 shipped. 3, Negotiabta slutua thal tne goods retested to ‘hata wll be daiiverud lo ty beara: orto he ‘order of any person named therein, 4. Nonmnegotlabla + staie3 thal thy grods Toferred to thureln will Uw dolivered wo specie (person. 6. ‘Cloun = Cows not Iidicate any defect in the To0 an Beda College of Law gous. 6 Pout = Contains nolation thervon inleating that tho goods coverad by It are In bad consttion, 7. Szent~ Covern goats thet already have bean dolvered by tha varrler whthout a surrender of 2 tigned copy of tre bil, 8, Through» tesued bythe cerrier who ia obigsd to use the facllies of o.ner carriers os, ‘well a8 hls own faciities for the purpose of lransporting “he gooda from the lly of thy sollar 19 the city of the-Duyer which bill of fading is honored by the second and other (Nlaronve eariare wr do not raue thelr on 2. Custody ilrwady ro One wherein the goods are 1d by the carrier but the vewset rnat yet arcived In the indleuted theraln hi or 10, Port = Issued by the carrier to ‘whom the puods have beun dslivered and the vessel Indicated In the oil of lading by which the lyoods ave to by shipped Is already in the port ‘nate the youds are held fer shipment. ai Declaration ‘of specs pat of the ante earge org9, Is w mative of burinexs converlance basod on ® __| contract Ft To | Purpose isto protect tha Customs | Impoter or” consignee ea witve isto! | (Macwiday ana Co. lac. va, (9608 eartiog Acting "Commissionor, No. Le 783 Fobruary 25, 1970). REACH OF CONTRACT 07 CARRIAGE LIABILITIES, OP CARRIERS, tte ay jonc act Mtoe ATSdlcarrior ¥) drow enrteanteatgoryaeh oct i Cr ‘a se ie tina AE Lohans tin ey lluble as 3one ehh College of Zuty MEMORY AID IN COMMERCIAL Law} 201, ta ee ee a nn ns EMORY AID.IN COMMERCIAL LAW] 202. Cofenen of dun elllgance In the : section and sunervisicn of empleyeen Is available, Exception: raacitine tort resulhng in colision (Sea notes on Colston Auhough the reletion af passenner end carrer Ie contractual bath In erigin aad astro, heyerthaleys. the act that breaks the contract muy also be a tor (Ale Franco vs. Conascoso, ‘No L-£1428 Soploniher 28, 1966, {n tho £098 0f injury to passenger due to the Reglgerc of the driver of fa bus on which the passenger vis riding on and of tho cilver uf anoihar vehlels, thn divers ass well a the Comers of tha (yo vohicies ale joicty and Aaverally Mohie tor aenvnges, It slotd not make eny diferaneu that the tind ef he bus owner springs trom. @ contract while that Of tha diver springs from qiinste act (eh ve Arrosgado, GR No, L-120060 Saptembor 1, 2004) Since the emptoyar's (owner) tabiity Is primery, direct and solidory, ity only recourse Is ty recovar what it hie paid. from. its employee (driver) was negtigant (Pritirance #S. C4, GR No, 120863 June *7, 1997" Culpa Delfetwal (eWvil flabiity arising from crime) The driver Is primarily able, Tha carter 's subsidiarly Hebie only If tha drive-is convicted and declared insolvent, Busts: Art, 100, APC, ‘The act of tha shioper In fursisnine tre earn wilh inaccwate wright of paylonds it not 1 excuse to avold llabiiy, hu. saia act Censtitules a ontrloutory circumstance which mitigates the lcbilty of cr mrier (Compania Moctinio ve, CA, L-31379 August 29, 1908). Passengurs have the right to he treated by tho carrier's amployany with kindnesm, fespact, covrtasy and dun enasics alia Such that any dlacaurtaous coneit! on the Yhe enrHler eanriot sent its habity ‘or injury to, or loss of, g3¢ds shippod whara ruch Injen, oF loys was, eavted by iis own siogligance (Yemael “va, Barri “GR ho. £8028 November 25, 1927), SPECIAL RULES ON LIADILITES OF AIRLINE CARRIERS: a 1. In nee Bf fight diversion due to bad weother or ote eheumstanees. beyond the lots control, ‘he foliation between the cnrrler ane the pastangor continues yAlil.the Inter has bern landad at the port of dnstination and has. Jet tho carrier's premisns, The carrier should nocescanly exercise a:traordinary dlinene In tufeguarding. the comfort, conveniance and safaly of ts akanded pasesngere un tiny have reached their final destination (Philiyping Aitinos vt, CA, GR No, 82619 Soptombar 15, 1903) Even where overbooking of passengers. ts alsin a8 sommercitpractve, eae oman wets gully ef bh ah ned Stl Behe for damages Wt elo no props inforn passenger that could brn tne contract Creme pues page, the Confimsc pnesungers (Zalman v8. GA oe WNo 104286 Novornsor {0,909} 3. Ao opendnted tater congitues a complete contract between the carrer and passenger. Honea, tha "eine spony hain talutad,'o conto a passenger ttt feaervalion (ingson ve. Oh BH ho, HSS Novartr 18,1997). 46 Aa ane company ich Issued contin cl 9.9 passenger covering “Rinarscha ips on aeren sfinne can be ut re or rrnageecantened by “bumping thy ie the fucznsiveallngs (ufhnsn fonen Audion ve. GA, GR No. O3612 Noten *07) 5. An itn thot proving that eninge wy Suceenive sirens fe Yo be oman eG ‘sla eperation” Teta maketh. leary Gavi aio for Tha trou conde oh he nv A ging proton nth ts a a oe i Rane pea Hoy alt ghee i enough ¥ " Hl f ae202 |2009 CENTIALIZED GAR OPERATIONS oan edn Collene of Hato 8. Charter party : 7, Goans on bettomy and respondantia. 8. Accidents in mariime commesca MARITIME | ADMIRALTY LAW Ils the system of laws which particule re'atys Dean aslicinerr 4. ineraatienal’ Islandcoasteig oveinoawlorslen (rom {ranaportadon foreign country to Pris) wa'er, or] Note, scaled 9 tw rue / 10 the affays and business of the sea, {0 ships, porsion OT Manan Gaus their crows and nevigatlon, ad 19° murine Fa Cartage otgoodn | 5 Welssmariime | conveyance of persons end propery (Nelus eid anspor Cases on the Lew on Transportation end *uDli: 2 Cartane of Laties, Aquine & Hamando, oting Frencisco, PRED HL hc MOU 0,264), 1 conan precaaunt [7 Rot a con {the cavae of action Is | precoder: ractor , a ee te SeatAt ES aseag sr | Sharacoriatto of Martina Tensacion onettlon of he yond | clainin lator! aurmana Frerdee vet ogee Similar to trensacions over real property with Go. Me de Hta08 fespect to effactvily against thie persons Bacumbar, 1947) which Is done through registration (Rubiso vs. 2. Immediate ting of Rivore, GR No, 11467 Ootabor 82, 1917). iam tor patent daniage ‘ay bo eral or wil Tho evidence of real nature Is shown by: a Relat, pared. for a, the limitation of thu labilty of the agents aiming alent damage; to the actual value of the vessel and the ya ini ta Ca Tah money an aa on a enol b. te righ! to reiain the 3,90 and embargo ‘and Vetention of the vessel (Luzon ne bi aged Gand ; Ao nascent eee y | SameREE gente, or dale Stevadoring Somp vs, CA, No, +5397 10 yaersswth issued bit | when the vassal let pon, of lacing from the date of Dosember 3, 1987): aivury" ioe “eras {non-dolivery or loss) 2. Hypothocary which shall run from ‘The real and hypothacary na'ure of maritlne thivery te vo aranee lu simply means thal te “abllly "of to ‘operaicr and ot to the: carrier In conreciwn with ‘osses related to ensignge (rien Cr'ice Inariime canvacts Is cenvined to the ves. : feu es buna which stanss- as the guaranty cr thal : pre dune 13 1977) votioment (Abotiz, Seping Corp. v8 poutine jonural Accident Fo and Life Ass.rarco f | Damage, not misdalivery | Loss or — not Cord, GR No, 100446 January 21, 1993). Net atigyPotaan va Lin | lay, © misdetvery “or oo GRP a wc He ‘(Bur Revie REeeromrerecmomars ch et ME (must be writen, Art, 1168 | prascriptve period (Cole Secs pi < Nee) Bete tains 08 Ne : anti (oie. Feruany 27, aes fea ana fmm wars ard tbe ates an ae poner! i pce sh prs Se ahora ok i Ge ore My ‘nett ee apap ere eet page, 08 ~ Pee acticn of ‘MARUIME COMMERCE (Arts. 673-869) Inporant concapeat 7078 (60 1 Merck esta! iss 2) este lt ana Preference of Crea ee Qa Faty tke no 2. Dovtiins of limited bability. a the requisites, 4, Causes of revocation of voyage the only hhuttel mortgage of 5. Participants in mailing connerce vase! need fot be ndleu in the regisy of WEfan Hedy Colloge of Haw deeds ‘but record must be anterad In tha Callector of Gustems ai the port of onuy (Fi rating Som, vs Jarque, GR, Na. 41606 March,25, 1938) + A*bancat must also be consitiered an a vessel within the mearing of the word as understood fn. th Sode nf Commerce, (Yu ox vs, Int 44 Phi 770, 760) MARETIME LIEN fi consik-atus a prosant tight of propnrty i ths ship, a jus in 18, to Ba afterward eniorced in remiraty by pragess In rem (PAN VS. CA GR ‘No, 128464 August 6, 2000). 4+ -1the minzine ian arose prior tothe reearéing ff a oraferted mertgnge, M shail have pvionty over the raid morgage Yon (FNS vs, C/, thet). ORDER OF PREFERENCE IN CASE OF SALE OF VESSEL INT Loh canes” anu casero ean re im ce TUT TEMAS SNE See Ee ee Aceh ecantnt | tena nwo ey Manat thn vesacl, except over all ia're.anairst | ee ee Oe ata ve We ooo ee eed Tt Sy ma | teow sins ty ee end pomadeay pane | nacre tan Palle are ea es Sayre ays ots | sein oornamne Eaten ertecant att | aoe aoe Sain ere aS Ser ee eae, mm Seer Hg "Ral auraye | cones ane are Bett |e wy eae nT he rt tai ane | ose at Ie ae EO | ee) oie Fe a ee ou tapos sare 1a oe es meta BM a nan and | Sons ere Eee oh geet ae cao De Se eet dives | teatvoyegn, ane Prelerenmontsanne | secede oN Effect of enia: All pre-exleting clalme Inthe MEMORY AIDIN COMMERCIAL LAW| 204. ‘rom ‘he proceeds of tno sale subject t6 the cvint vf preference. DOG" RINE OF LIMITED LIABILITY (AYPOTHECARY RULE) . Cases whove unpioable: 4AM. ST = chil ably for Indernniing 6 tea ppocsans 2, Art. 690 ~ Indomnites from negligent acts of the eaptain (nat the shipowner or ship agent) 2, Art MIT = cofinlon A Act, G42 = inbllly for vegas of tho captain ‘and tha raw and for advances mince by ta Ship agent Ifthe vusao! i fost By shipwreck or expture Gonorni uot io vornal, No ‘Inbillty, The fnblity of shinavetiee fand ship apant in tinted to the amount of tnistoat thr sald voatel auch thet waiera vaseat in natively fost, tho obligation Ie extinguish (Luzon Slevedoring, #8. Escano, 156 SCRA 109). © “Thm interoat oxtondls to + thnven sl teed ‘equipments; frelghinge; and Insurance procoors “Chua vs. (AG, No. I 74811 Suptombar 30, 1980) Exceptions: 1. Ciaima undar Workmen's Gonipanratian {Abung vs, Bn Dingo, 77 Phil 7.30), 2, Injury 0: damage dua to shirownet or to tie concurring negligence of tha shipownar and the pamptains 3, The vessol is Insured (Vascuor vs. OA, bx 42926 Seplombor 13, 1985) 4, Expenses for repalr on vessel completed befora loss, 5 menutae ut 9g tha vos is We babbling Malad ees Heinen smosadk MAGE AL any “re Maan est Aiitypatiila-mfControkunshlaping eyed” va. ; Aisin Gy 8 1 inet only to 3 Mgedtont! oF ign undor no corte. Hee San of ncust Steet fenninaed They wi Thon be ales recovery ner ya tea EEE CE CeCe e CeCe Ce Eee Cee Cee Se eee ereee Seresan204 12009 CENTRALIZED BAR ERATIONS. Avclient Fre ond Life Assurance Ccmp, GR «Na, 100446 sonuory 21, 1999). ABANDONMENT Abanconment of the vessel Is necessary to limit the labilly of the shipuwner. ‘The only Instance Wore abancanment ig dlapauisad wit Ie when ine vosvel is enticaly last (Luxon Stevedoring va..CA, ‘No, 4S8097 Ciicambar3, 1987). Right of Bhipownur oF Ship Ayant to Abandon Vestal instances: 1s tn.cas0 of civil ability froin Indonvnities te third AHO. (AL 8B? Code of Commence}; 2 In case of leaiego of ot leact M of thy sontanls of w cargo contaliing Iquids (Ant 887 Code of Commarcyy; wind 3 In zuse 0” nonutructive lo¥g of the vassel (Seo, 186, fasurance Gna), wi) 4. In C366 oF evi Faby will raiedelhery, Wom inden ities wa thed | where vie quod ay petwons (Art 507) uuelasr aint the ovis 2 Swe, 198, hnsurunee | (At 303), Cove: 2. Goals ere rendoreu 9. Ih save o, teakage of | Gaels Gr sale or ot east $2 “of tie | consumynlon for tie Centan's of | ccige | gruipusos for which they are anlaniag “iquids (A°t | proparly dovlined (At 966). 67) fond 2.1m cas of evlay tnvough Ue fui oF the cotcier (Ait. ae OCU A RUT Or Yee aN 4 Tearstor 01 ownarship | 7. Veelvt of ownership on Ut thy vessel trom nw | mw yoods tom the st pene | Vpowaar tothe | a ite Gut ‘ Lipo or Ins {Galwer giWUIE pay te 2, Incase of (2), the | shigpor tha market vive of tnweror “must “pay tis | Wa goods at the point of togured as IC Laure was | dauination, sua tote J Causos of Rovoretion at Voyage (WabPity 1. Yar or Sninrdiclon of eprimuicy: Thtraietion of commerce ~ & govaramente| prohibition ol comunercia} » intercovrse Tntanded ta bring at.ou an untire cosvalion ‘or the time belng ofall rede winaiever. 2. Blackede: sor of cheumvaiizion of @ place by “which alt foreign connection» and sorrespondcnes it, as far as human powel can effect it, i be cut off, en: tne Bebe Call {San Beda College of Law 3. Bronibiton to recsive cargo at destination; 4. Sindarge—A proclamation or order of a stat ‘usually Tssuau in: time of war or threalene: ‘hasultiss, pronibitiny the departure of ships or itty oods from soinn oF al lhe porte of such slate 3 Unt futhar order, 2 i 5. [nabilty of (he vassal to navigete (Art, 640) PARTIES IN MARITIME COMMERCE (caposs) i 4, Bhipovinere and ship agerts 2, Captains and masta of the 3. Qtilears and grew oft 4 Guporcuryoes : 5. Bilot : SHIPOWNERS AND BHIP AGENTS. Shipowner (propeiats 19) Porson wnd nes poweesion. centro! und management of the vestol and the consequent ot ‘ght to diract her navigation ana receive trelght i ‘earned and pald, while his possession continues, Ship agen: (navloro). Porson entrusted wit” provislonlag "ond ‘feprasunting the vessel in tne port in which It may ‘bo found; also Includes the shipowner (Chua Hok a Yong vs. IAC, GR Wo. 74811, Soptambar 39, 1989), ty + Hushanging Agent = 1s the gereral ‘gcat of the owner in relaon to the ship, with powers, amang others, to engaga tne vassal far general freight and tne Usual condlons, sett felght and adjusts faveruges with the merchant : (Commissioner of Internal Revenue vs, Grito States Lin2s Go, 8 SCRA 175) . NOT A MERE AGEIN UNER CIVIL LAW: HE IS ea ae ‘OWNER. ns oe ban cory ee ENERO A 2, 3Zan fardu College of Mow Civil Linbilltion ef tho Skipownor and Ship font ‘Ail contracts ef tha eaptein, vihathier authorized ov Not 19 rapiir, sin and provision tha vessel (An, “S05Code of Commarcoy, 2, Loan and dainage to the goods lated or tt vessel withou' prejudice te thelr right £0 f themselves fem Papllty by ubpatoning the vessel td the cretitors (Art, 807 Coda of Commerca) ‘The ship, oviner cannot be held tabld for any damages that may have een dice vored after delivery of thn entgo to consignee (Enstem Shipping Lines, the. v8. N.Y. tho Vothoilandts Insurance Conipray Gr No. 146472 July 27, 2000; Solldary “Linbilltlas of tha Ship AgentShipewnar for Actk Oona by the Captain towartla Passengars and Caiyoos 4, Damages to veesc! and to ‘argo dua to lack ‘aki and negligence: nefts and sobberlee of the craw, Losses and fines for votalion cf iaws; |. Damages due to mutines, Damagen dun to misuse of powar, For de vations; For arrivals under stress; Damages dire to non-sbservanre of marine regulations (Art, 610), Duty of Ship Agent to Disch me the Cnptatr ‘and Membors of the Grow soll tho seamen vantinct'is not for a) define pertod of vayuga, bo may discharge them ot hi dlserution (Ari, 603 Coco of Comnerco).. [+ Iter a dofinia perlud, he may rat discharge trem. until after tio. folilimont of their contracts, except on the followhg nouns (OiaTH): aubordination In serious matters; 2. Robbery’ . Thef: ‘ bilual drunkenness: 1894 couse 0 the verbal or to tte anna through malica or manifest or proven nogligensa, (Ar, 625 Code of Conimarcu). CAPTAINS AND MASTERS 2, Tny ora the ela or commande of +The terme have tha exme meaning, but ace pertoulatly usod In eccordance with tno tlzu 4 the vessel yoverred and-the cops of (rangportatan, I., largs and overseas, and mill and coratwite, respe-live! MEMORY AUD !N COMMERCIAL LAW] 203 The rosponalti of the captain remning evon If the vessel Ly en «compulsory altolage (Wikivioy Shipaing tio. v8. GA, 119008 Octobr 6, 2000) Nature of p3sition (S-fold charneter): (GTR) 4, General ayant ofthe shipowner: 2. Techolealdivuetor of the veasal, 3. Reprosaniative of the goverment of the Eauney under WhO fhug ho navigate, {inere Orinnt Manne Entorerises, Inc. vs. NLRC GR No, 115208 August 11, 1904) Quolificattons: (FiLoMus) 4, Elling eflae 2) Loan caveetty to contract; 3 Munt hava prtsad the requlrec physical and Frontal aeaminatlone required for licenalng ‘him a atch (Art, 609). Inherant powers: (AMIGO) 4. Appoint e-ew in the absence of shin agent 2. Gomorand the crew and direct the vesset to iis port of destination; 8. Impnso ceiroctional. punishment: on thote who, wha on board vessel, fall to comply wlth his o'ders or are wanting in dineilinn; 4. "Mako corttncts for the ehutler of vossnl in the Absence of ship agant, 2. Supply, equip, ano orovision ty wens and b. Order repair of vossel to. enable it to contre Its voyage (Art, 610 crauly nf Commerco). + Sources of funds to comply withthe inher aware al the enptain (in euose sive order) From the eansignea of tha vannel From ine consiqnne of tha cargo By dawn eh ah iby ‘agent; Saad AI cs ay ee ECs nee ie 705206 2069 CENTRALIZED BAR OPERATIONS, loft by deceused 10. Goriply with the requirements of customs, health, atc, af the port of arival 11, Obsorve rules to avoid coli via: 32, Dainard a plist whlld unturing oF leaving @ port (Art, 612). +A. shige sonable mieasure of dlscretonsry authority tn doclag what the vafeyy of the ahip aid of ts crow ané cargo spacicaly requires on a stpulitad — ocsan voyage (lotor-Ocen: Martino Eotoierisos ine. vs. CA, GR No. 118286 auguat 11, 1909) + Motility fo the flowing Oa.nages caused fo U9 vessel oF to the cage by tyrew gjuures Obligations zonlracter for the ‘epair, equipment, and provisioning of the ‘vausel unisos he bus expressly bound ‘imself parsonat.y oF had signee @ vill exchange oF prowlascry note i: his name (Ait, 620). May the captain have himsvif substituted by sanothor? No in the absener of any cursent fom the ship Bont and should fe do so he sitll bo labs for ail the avis of ta oubstiute und bound to pay the Indemaities mentioned in At, 614 of the Code of Cortinarea, (Ait 615, Codd of Gommunorca} OFFICERS AND CREW 4 Sallirg Mate/Firsc Mate 2 Sacond Mato 3, Enghneais a Crew bitty undur the following circumstances: ( belore buginning voyage, vaplain attemts {0 cheage I, or a naval wat wilh the powar to which the vessel was dextined occurs; 2 Mu disease broaks ou and be otfuio'ly declared an epidemic in the port of ostinato 3. tha vessel should change ewner or coptain (Art. €47 Coe of Cornmurcu). Salling Matu/First Mate ‘Sacone chief of tre vessul wh takes the lnee of {he eeptain in ensy of atsonce, vickness, 0, death ard shall assume all of his dutiss, powe.s and rasponsilitas (Art. 827) Sncomd Mato + Takes conunand of the wssel in css of the innbally oF cisqualifcation of the captan ana Ie captain must be accorded a” Sry Beds Cellege of aro (9, assuming In such ceoe thelr powers ond rysconsiblities. + Third in commana Englnoe Off zere of the vosee! but nave no authority except In mowtors referring to the motor epparatus. vvnen. wo or more are hirad, eng of them. shell be thw Chie enginaar, Crow + The aggregate of seamen who man a ship, or the ehp's company, . + Hired by thy ship agent, whera he Ie prevant and in hiv sbsence, the ceptaln hires them, preferting Filpinos. and In thelr absence, he may take In forelgners, bul aut exceeding 1/5 ‘of the crow (Art, 634 Code of Commerco). Just Causes for ine ‘Discharga of Seaman While Contract Subsists arpatration ot a cfime Repduted insubordination, wart of discipline; Repeated incapacity und negligence; Habitual drunkenness; ‘hysical Incapacity, Opsarlion (At, 637 Code of Commerce). Rules in cave of Doath of a Seaman Tha seaman'e huirs ore entiled to payrnent as follows: 4, lf death [s natural: @ compensation up to tine of death engaged ~n vega » If ay vayage ~ half of mount if ‘death occurs on voyage ou'; and full, fon voyage In Wf by shares - none, if before apatturo; fl far departure icone ad a ue pee 648) & EGH A cdetitingntacins rile brine “ree m e ae ral Pesons assigned Wel baoping en accou fequired In the: cont Sd of ansaction as Feountingpbock of the captainBean Reda College of Habs tan, 349) PILeT + ix person duly qualified, and Feanzed, to conduct a vessel Into or out of pots, cm in certain waters, «The term generally connotas a parson taken con board at a particular nisce for tha purpos2 of condur'Ing & ship threugh a river, roa6 oF ‘channel, or frm ¢ port + Master pro haa vice (lot tha le being) Ie the ‘coramtnd end navigation of the ship. + While exarelting fio functions 1 pot fan gale command of the ship and supersedes the Faaster {ot the time boing In the commend anct fevigation of the ship; the manter dors not Aurrandar his vaseal to tha plist and the plot is not the master, There aro cutnstons when ‘ye mnoter may ead should Interfere and ever, tlgplece tha pliol, 28 shen the pilot le obviously Incompetent ot Inexicated (Far Ensiom Shipoing Company vs. CA, 2 SCRA 301), Compulsory Pllotage ~ States possesuing hervors have enacted laws or promulgated tules reyuiring vease's approaching ‘he'r ports ‘9 take ‘on’ board pilots licensed, under the locel lows (Notes anid Gasos on the Law on Transportation ‘and Public Utinies, Aquino, T. & linmancio, RAP. 7024 oc p, 610). Linbiity of Pitot General Rule: On eompulsary ‘iistage grounds, the Harbor Oot Is respe-rsible fer damage 1 & ‘unseel oft ie oF propnity due to hie neatigence. Exceptions: 1. Actident enuued by force rajaure er navural ‘ealamky provided th pilot exercisec! prudence and exirs diligence (0 prevert or ninimize damages, 2 Gountecmaad of overila by the master cf the vessel In which cane Ihe “aqiniorad owne” of the vessel Is fable (Seat, Amt ll PPA Adtran Oreo: 02-85) “Tha fact that th tav/ Comnpelled the master to tak tho, pot does not excnorain thy versel from {abilty. The owners of the vessel nre reapcnsibhe forthe nets of the pllo,, and they must be lef to acover the amount ngatval thot (For Castor ‘Shfaping 20 VS. GA, 297 SORA 0) eon a vconenon, nu 3 TA 1. Cheater party, fil of Inding) Enntraet of anspoitation of pnazengers os rina vnyaues: 4, Loan on bottomry 8, Laan on respondontis, 6. Moving insurance CHARTER PARTY IN GENERAL A eonlmnel wharaby an ante: ship or nome fringlon! prt of tha aald ship, Is tot by tee owner thereof to @ enarchant o¢ othar parson form spociiad tine oF ute for the conveyance of fgouut, i9 caneldavation o° the payment af faight (Gotine y. Sulpicto Linas, G.F, No, 191468, Sap. 20, 1999), uring OF CHARTER PARTIES 4. Brinbont Demise Chartar ‘Tho shpewner teases to the charterer the whole veetet, transferring to the fatter the tentire command, possession and cansequent ‘conltol over the vossal’s navigation, Including the master and: ths -crev,. who thereby becomes the charterer *navants” tapiizations of a Bareboat Charter + Th@charterer is aleo iiablo for darvagas auising from negligence, aneanie ag Winter; ofy ae qvessor heco meotitgaaen ee ig Tithe i Al eosin & Fi ihe vagal 1s, tna aot voyage is nn . Truely ge pease of neg aitny goods (SF chactore 307708 |20C9 CENTRALIZED KAR OPERATIONS IRE TOLD CONTRA HEED RAR OPERATIONS trupiteationa of a Contract of Alrolghtnont ‘+The chartorsr hires the vosse! only; + Mastor aiid crew rematn in the employ of the shipewer, + Tho charterer acquiras the right te uliize the carrying yapacly’ aad fackiuiea of the ind Wa duxignate her destinations Curation of the Une or voyage Bipuleled + Shipoviner remalny as the owne: of the vassel; + Shipcwmar lyble for the expenses of the Goto poled, | Gharierer may — resend ccennat gWva_up | chortor pany ty puying hut tha Wage ty prying a | oF ime treighlagy” aproud portion of the’ amsunt | pen, ‘proud vpon, Wine touved propery 1 | sale one who kagwie of the edctance af "ha Tease, Ihe vw ow val ‘espect tha loa ‘Te ioe ower am sorieoled 2 raspost the Shurtr party a0 lehy as no San ood tha vaso win i vn enya re 638. | ‘Gorunercia law vonsopt wir semana. edie Udlo ‘Tr ober Saved | cu’ and us ancwer by nagigonce ty reach of ty AS HESS ST Charice regnoa an | Chartarer te not egeted cwnar pro hag vicw for | @a owner, [fi vewsal of Tha yassel wwner roluing uirguishus posuession, | posseusion, comunand ard ‘conimand. ‘ang | navigation of te ot ip ‘avigaion to charunst i Corrunan carrer 's not converted “ws > privato | ous cavtor cconverteu to privae Huqulaltoy of » Valid Chartor Party 4p Gangentof ha contaoiny pares fExi ing vwawel which ahovid be pliced at the clspositon of the shippar Frog, Compliance with Af. 362 of the Code of Comnierca (Orovin in dupieste, signed by the portles ond containing the mandatory sondions ja quot contract 70 San Meda College of Las PERMISSIBLE CLAUSES IN A CHARTER PAPTY 1, Jason Clauso- A stipul that in case of a mari far which tho shipowner ly not responsible by law, contract of oth rwisa, tho cxrgs shlppere, corsignees or owners shavi convioule with the shipowner In general average (Pa.idact of Commercial Law and Jurisprudencs, Justice Jase Vilug, 2006 a charter party 2 Parimount Glausa- A giause In a charter party providing that the COSSA shall apply, even though the transportation is domestic, Subject t> she sient that any term of tne bill of lading Ia reaugrant to the COGBA. or applicable'law, tn to Ine extent thereat the provision of the. ol of lading Is vols (Pendact sf Canmerclat Law and durispredence, wustloe Jose Vitg, 2008 00.) RIGHTS AND OBLIGATIONS OF gaat z W the seauel is chartered ‘To pay ie egruad vivaly, net 19 accept carpe | charter pea ‘rem alters; To pay frelghtage 4. To observe represeniad | on urboarded carga, capacly, 3, To pay losses’ to To" unioad cargo cihers for lending iangestinely placed Uncontracted cargo 4. “To subeiluio anatner | and ith cargo: 4, To wall ‘it the vossul naads repalr, & To pay expenses for daviation (Aris. 674-687), vesnel logo is loge thay 35 of capacity; 5, To Weave the par if the charterer does pot belag. the argo within tno lay days and ‘exe lay days alowed; 3. To place in a vosss! ina ‘cn jon 19 navigat to bung earye tk gasen Pade College of Lev _—Miony ADIN commencine Law! 209 1.By sbendoning ths Intordition ot charter and |wltent the enmy | exnmarca: prying half of | being sidead | 2, Blockade, {he frighte ses. | slongsida the | 4. Prohibition 2. Error ie | veseol to recvive tonnage orfisg: | 2 Stle by the | earno: 3 Felers to | owner of tha vassal | 4, Embargos piace the vessn! | before loading hy | and at tho | the charioter, 5. Inmoity of chadorar's The east 10 aisponel, ravines, 4, Roluen of the voasol cud to Praia, eveenies or bad weather, TERMS TO REMEMBER: 1" Prirvaga = boris 10 ba paid to the captain after the suscesstul voyage 2. Donueragy = the sum fixed In the chartor party as. remuneration to the ownas of tho Chip forthe detenvian of his vesse: bayond the umoer of daya allowod by tha charter party for loading of unloading or for satin. 3, Deadtraight ~ the amount rao by or roceverable from a charterer of a ship for the _ portion of the aip's capacity. tre latter antractod fer but teed to 0°” uy. 4, Lay Daye - days allowed t0 charter partis for toxding and untoading the cargo. 7/8. Entea Lay Days + days: whlch follows alter ‘he lay days havo elapsed. sua." ronms oF. cONL.AAMATING CONTRACTS: 1., CLF, = coat, Insuranea tod fenight ” FLOWN, free on boned: 3. FAS. = {reo alongside #hip; and 4, CAF. «cout and freight, TRANSSHIPMENT OF BOCOS ‘The act of taking et1go out of onis ANID and loading Itin another, ar the transtar of goods from the wsssel liculoted jn the’ eortrect of atfaightment "0 analhor vesuel befere the place. Of cottinallon named in thy contract has been feechad, of the transfor ior farthar trartporation from ona ship of cunveyanes to another. it ia -not_dapondent on the cvnership ot the iransporting ahips ee In tha change of evvrlers, but ether on the fact of actim physkeal transfer of featgo trom ara vunsal te ancthel, AE dor a without Inghl excuse, Nowaver conpeton and safe tha versal inte which the transfer ia made, is x viola: of eontract and Inilnnoment Grright of shinpor and subjocts career to fnblly frolpnt fs lost avert by cause othonwds excepted (Magellan Moiufecturing v8, CA, 201 SGRA 102). OCT aorromny : lnm secured by the shIp ownet at ehip anant querantoed by the vessel fise and payable only Spen tne erival of “easel at destination, This ean aio. be secured by the captain outside the fosktanae of tha ahi owner or ship agant, RESPONDENTIA loon secured by the ownar of the cargo novatle ‘upon safe active of garge at destination, The ship ‘owner, agent of captain cannut:secura the loan (Suidlang and Aquina, Reviower on Commercial Lav Leen miedo Skipowner of engo Ingen 08» | Spent qunrnnitod | vassal, id connyabia non Vance) isnt ant | safe. atrival of enn feonyable sine srtval | eeatnation ft. 19). | fol vessal at dastination | (An. 79). HTD IGEN ETAT, Shipowner er ahiy | Onlythe owner fino fags, Outset of the rosidnnen of the cvynors = tn0.cnptnin RT RARER PC wake a enigp.210 12609 CENTRALIZED BAR OPERATIONS ness |r ‘marine risk is necensary. ‘Musi bo exoruted in nceoraanice | Feemal requsitos with the form and manor | of an orcinery prescried by the | contract) wil fl suffea. feeeied tveatels to Ge bineng (one persone ie. ‘uch feulgzation “18 roguited., Prolarcnoe extonied to the frst onde. | last onder, Winn Loan on Wottemry Ropiardod as Siinpla Loan 4, Lender loaned an amount taryer nan: tie value of the objact dur to fraudulonc reans ceinployed by the borrower iA”. 726 Gude of Commerce). 2. Ful ainnunt of tae oan is not used fer the cargo of given“on the goude If al. of em could not hava been loadec, the balance vil bbe consider ad & simple loan (Aut. 727 Code of ‘Conmmorce), 3, the affacte on which the meney ig takon Is ‘nol cubjected 10 any tisk (ft. 72:1.Code of Cainnarca). or Ruspodentia ‘Note: Under existing laws, thy partes to 1 lean, whothc? ordinary or miariine, may agree on any fate of interest (CB Gireuiar 905); proviges he samna_if not contaty to law, mcrals, good customs, pubis order or public policy (Ar. 1900 NCC). ‘asvanee by way of a foun Tn cagg oF ions oF vorwel duo oo marne “pur, ne ouigation of - the burtowes to pay is ished in’ cour oF leva of tho. Vstwol dou 10. 0 tak ngurey “against, vie ‘ouigation of te Insurar bocones abeclute ane 7 aa Te Hyaothacery Poapondentia Nature of — Bottomryl ! Ruler The chilgation of the borrower to loan Is axtingrishad Ifthe goods given os solutey. lout by, reason of an of tho sea, dung . designated, and If ts proven hut the goods were on board, Exceptions ‘Loss due to inherent defect; 2 bass deo te barratry cn the part of tha ‘captain; 3. Lose due to ine fault of malloa of the borrower, {. Tho vent was enguged in contrabun The corgs louded nthe vavvel be alforent in from that agreed upon, Concurrence of Mafing Insuranco and Lown on Boltomryesuondenta ‘The Ineucablo Interast of tha owner of a ship hypethecated by battonury 's only tha uxrgas ofthe value dver,the emount secured by bottomry (See, 104, Insurance Cove), Tho value of what inay bo saved In case of ‘nipwreck shell be iivided between the lender And the insurer In froportin to the intarest of @uen one (Art. 798 Coca of Commerce), Noto: if@ vessel ts hyputhacated by bottamry only the wxc355 'g insurable, since a loan on botomny paattakes of the natura ofan Insurance coverage {o the extent of the loan accommodation, The ‘tame rule would apply to tha hynothacation of the ‘cargo by. rarpondantia (Pandact of Commercial Lavy ord Jurisprudence, Justice Jose Vilug, 2006 ed). vera val Bh DROA van AGE GE OF LAME an jeurred ai ca1g9, vest joration sul ie port of dee pon of load j06 Code The pest contrbute expense not a Meal wverage aye caused or jauon con ilitules Hun Bede College of Law ay_ fon Men Gettege of awe LEMONY AID IN COMMERCIAL LAW| BLL Ils closstted Into: (11 generat o: gress average oF {@) simnla or partes la: average (1. 40). venere both vessel and cargo ard saved, It Is general average: where only tho vessel af only the cage is saved, itis particular averege Expenses Incurre! to reffoal 9 vensel, which Soaidantaty; ran agiound, it ovlar Io continue ls Novage, do nol conalitute generat nverga. Not aly ia thare ahgenue of Marine pred, comaer safely factor, and delibernconans, His the satuty df the pfosery, and not thy voyage, whien omalitules the true foundation of general avaranc. (A. Magsaynay, Ino, vs, Ayan, GANO. 1-393, Jan, a1, 1955). Hes “ot somon | ih ‘nt exomnses tawiad fo the veel =| aiterninly canned In ge trot dit not inure | ova to cave ta vost, ie Io thes pation bone’ ‘and bore by raperive fonmara, (Ae £0) PTR fen go 01 Hol from cea an fermen rive. (Aut O41) OTA 1 Sere nace A prover Lxmaties and TTI ERM wich gave flgn in ine |r in Dy vn set and esnet a | tc Mayon eee Gul an’ |e Sno wan pose aC aoe Seas | Sa" 98) i a unas eles iy Kae ed tae), ATLSATNE TANNA OLY ‘Only ene TU a “Savitrlineraste invowved LEE ia pioportion tothe value ¢: reaamsnsn ae nt (No raimburssmant trae may De enibir aaron mM PSAP Ha AO ATW EAN Ao Anpieaby ‘and : Sarena Qe Resoution al th anna eit of ten iasclition in tan tagboox 1. Delatedminules 6. Delivery nf tho minutos to tho mmavllnn puicil sutiorily of tha Fest pont within’ 24 hows fam ar Be Ravtenting ty eapisia unter omy (Ara. 9.054) | Goods Not Goverod By General Avoraqio E i Snerifleedt Gomity enrried on dock (Art 855). 4. _ Goo!n not eareeclad in ina hooks or recoeua of ihe vessel (Ait, 055 (2). 2 Purl for the vustel If thera Ie moro than ‘nutfilent furl for to voyage. (ula ix, York Antworp Rule) SETTISON ‘het of throwing enrg® ovarhoard in ord to Uiton the veasal Order goads io be east ovebnert Those which ava on the deck, proferting tig heaviest ona with the ioasi «tlity and valua; 2, Those which are dolow the upper deck, eg nning with the one with greatest wright and smallest value (Art 00). ltisoned goods ate ot rea n= nae dawned bandied altin the menning of el mt 804 th be the. abject of corupatcn Ly talvage {Pandect of Commo a ‘fad Jurigprintoace, Shisise dow ia Aue nn ch : he iB “fee ia wae ae NMR Ally be neal ‘rose of gurort nlarbh, He crise thotetina on boned shouts ero ees Nose we ‘pre (Ait i Yor i Ke BEREN onany hn wisi roullet a. sip Herbs - lee rae i ae, Be dan i oe rt Git sneute 1 reese reimbursat Hesse Ws violation € the YA ‘nae24. |20uy CUNTRALIZED BAR OPERATIONS 3, deck cargo Is tondad with the consent of the shipper on cuastwive shipping, it must always Ganivlvuls to general average and if jettisoned Would be ented to ralmburvement, Rouscn i domostle shipping, voyages are Usually short und te seus ara generally. not fcugh.: In overseas ehipping,. tne yeseel in ‘oxpoburl for any deyy tu perils of he sea, EN cargo Is Aol ‘ack ARRIVAL UNDER STRESS (ARRIEADA) ‘The ureivat of 2 vessol ul the nowrest and inost convenient port inaiaud of thn port of dostination, WCduting the voyege the vessel cannot contin ie ‘the tip fo the port of dustination. cL \ “Tua toauiiy. ts |e Luck of | The shpou or cominue voyage |" gravsiona | ship agant Ie ido ttarwot | Gun to | bla in -0s0 of prodsions. wele | wagigene. | wiontol “erihel foandad fear ot | 8'toveery | sndat stress. Bul toi, Secersiag” | Inoy shal set > brlvaetrs, fo usay | Fabh for the Pies, ee] oh ‘damagus coused Sistoms; | by revsyi of 8 fou daubieg I] 2. Mish of| lai aan i Aornuvigate fet | emeiny not | 81 10) ww 1 Shown of rurafos 3. Datect ot wuss! dun ‘e improper pot ang 4 Males, nagigune Pare foresight or al of Eoplain (EE pane ao + Its the duly of the captain to continue the voyagy wilnout delay after wie cause uf Une frtival under strage has caused failing in euch daly renders hin liablo. However, in cov the cause was 13k of enemins, ora must firsl oe ‘an ayseinbly beiore departure (Art. 426, a dan Bera College of La ‘Steps: Captain should determina during the voyage If hare ip well founded fea of selzura, privelears and other valid grounds; 2. Captain shall asssinblo thy officers and ‘summon the pevsons Irterestad in the cargo who may attend the meeting but without & sigitto vate: 9, Tho olficers shall determine and agree if thore {8 weilfounded reason ulter- examining tha circumstances, The eapluln snall have the Caciding vol hat be ‘drafted and the ill be signed and entered In the loq book; 5. Oljeclons ‘ind, protusta shal 'kéwise bu eoiared nthe minvies. URED RAY EE TEED Strictly speaking, cobislor, refers to the contact of two moving vessula. if one Vesuel is moving while the other is stalionary, Ihe same is. more apprapriately called alison, Nevertheluss,. for Purposes ¢! appiying the provisions of tha Code, culision icludes e¢lisien par. se und allision (Aouiro aid Humane, Notas and Casas on the Taw on ransportation and Pubic Utiities). Naatlcat Rutcs to Dotormine Nagliger.co: 1 Vian we vessels en about to snier a part, thy farther one must alow the nearer to enter frst W they Goliad, the fault Is prasurmed to bu ia putable to Ihe one who arrived later, unless ‘1 Gan Le provad Shall here was no fault on Ils pa 2. Wren two vesselv meet, the smalizr should ivy the right of way to the larger one. 3, A vessel laving por snould leave the wav lew er anatase nay be coat (ne — a fig @ ro A, prequel yfiot yalésballin. 6. n ree peroverty 8. ue ee a vosset oo ‘ As ceation of rane ar to vassuls voi 43 9. Vessuis m es oper ‘ivok-outs* oFfoan Peds Collen of Wat persona trained 98 such end wha have No pfuier duly astde therefrom (Savth Yall v3. GA, 197 SCRA 201}, Nautical Rules As to Salling Vostol and Steanshiy 1, Where a’ steamship and 2 toiling, vaesel are approaching cath other {ram onposte directions, or cn intersecting. linns, the sleamehip from this mement tt. sading Vessel Ia geen, shall atch wits the highess eligenco her course and movamerts 40 a5 to he oble 4p adopt euch tinnly meas of precaution as onli nucossary prevent the two boats irom coming In zon'act. 2. ‘ihe sailing vessri lo required to keep her Course unless the circumstances requiia oltenviee, Zones of Time In tha Goltision of Vonsoly 1, First zone ~ all time vp ‘0 the pro:nent when ‘ise of collision brgins + No rule Ise yot applicatsle for none is feenbaery. 2. Second zone.~ lima betwann snamant wires, Fisk. of collisicn bagina and momar! i becomes a practeal certaivty. «© Ihe fi this period whare cenduct of the vessels Is primordial. It's in this zone thot vessels mat sticlly observe nautical fulus, unless a deperture therefrorn, becomes necocrary to void imminent dangar. 3. Thiet rone «time when cot'istor is ceduin and tinve of Impact. + An error In this zone wuld vo longer be legally consequential. Reror in Extrornia » gudden movarnuit mute by a faultless vane! duting tho thd zone of collision wih another vageal weich is al fault during the 2hu zens, Even if much wudden movernent Is ‘arena, 0 tesponalbilty will fall on aaid faultless. vessi (Unutla and Co, vs. aan Rivar Plantation Coy, GANG, 7675 March 25, 1912), Canes Covered By Collision ant Alision 4. Ono vasaul uf fault Voatel ut fouil Ja lable for danvage causad (0 innocont vaesel ea voll an dnninges.surierea Dy the ewnure of ergo of hath vessels (Ari 826 Cody of Commonrco).. Both vessels at fartt Eaeh vessel rust bear iis own toss, but the a MORY AIDIN.COMMERCIALLAW] 214 fivipnera of bolls vngsos may go nya the shipawners who val be solidaily lila (rt 027 Coutn of Comenoren). 3. vassal ariault not known Bech vorsel mut’ benr Ite cwn loss, but the uhippora of both venseis may qo rigaiast the hipewnurs who wil be soldenly lle (0. 028 Code of Gommaree). Doctrine of inscrutable Fault ~ to vase of cotision where it eannot bo determine! tert helween the two vorsela was at fault, both vasnols bear thelr respective damad, It oll hold bo solidariy lable for damssge v0 the carga af hoth voscels, Thitet vassal at fault “The thied yeast will be Rabe for i ot damages (Ait, 834 Cody of Commoras) 5, Fortultous eveatitorce majeure No tiabilty. Each boars its own loss (Ari. #30) 1 subject to NGG roquirement on forsutas event to exeecisa duc dilgencn hifors, oun, snd theieater and provided that thyre +s 6% dalny. ‘The docttine af rae ipee loquitur apples in anso moving vostel ttrikos a stationary object, such an ¢ bvkiga post, dock, of navigationn! ‘ald (rar Eastern Shpplag vs, CA, 297 SGRA 30s; Luzon Stovoctoriig vs, CA, 156 SCRA 169) Even If thn eaven of action against tho contwian ceareer | bnnod on qvasidalict, the defenso of duo ciigones In the sele-tion and supeivision of fornployene i9 unavating 19 casa of a marine tor! resuting tn collision. ils not n ell for governed by the Gi Code bul maine ene gave by Arts, 8626-839 4st" tty isa perce (Marita 1 snd ab a Ab GUMN GAMO Pini 19 Sion sh abea Ava agen 12 fring of Udit: toh! Glico and f Caliutsey Noglgnrre0“connota ie 1 cou vent Seeing Haba nose ot Solves rnotns. anh CCHSUESAh gfe on Fae ern Horie lp. bi ae ‘ en ie : ae ot oiner ee ata seeigon Malar ere wie GRE romps to tn Geeumsiarens atidnding O8h oven, foe tye ea249 12009 CENTRALIZED DAR OPERATIONS Purross of resoveriny sees and damages Excusvs for no! fillng protoot: 1. Whora the Intaresied parson fs not on board tha wasek and 2. ch colon time, need not be protested. (Art 835) Cases applicabia; 1” Sullision (art, a3), & Anival uncer strays (art. 612 (a); 3 Shipwrecks (Ads. 312/18), 343): 4. Whore tha “vuseul “has gone ‘rough a hurricang or whan the capiain believes. that the garyo has sutfsred daniagas o- averagns (Ait. 24), by Whom: Capen, When inudas within 24 hours teem tha tine the Colivfon took plusa, Buforw whom made; compulent euthorty at the Polat of caiislon oF at the frst port of acaval, in ne Philippines and to cha Phibppine consul, if the callislon took placa sbroad (Art, $3), SHIPWRECK + It iy the tos of the vessei at sea aso nsequence of ity rounding, oF running ayainst an object in wa oF 04 tre coust it Sccuts whan the vausel sustains injuries due 10 a marine puril rendering her incepabie cf navigetion + I the wreck was due to malice, nagligence or lack of skill of tha vaptain, the cwner of the vessel may demund indernulty from. said coplain (Art 841). + The (vies on callition oF alision, as ney be _Pertivent, can equally veply to shipwrecks. SPECIAL CONCEPTS. Acrastro Survicw A contiact for the unloading Of goods trom a vessul, Anpleabiiti: Overseas Vode ony, (Commorcia Un tov, Vianunve 203% 0 Slanitteance: vimon a pyrson brings in cargo ftom alroad, hg cannot uniuar and delve He cargo by himsall. The wilousing must be dive by the arrasie operator, which wil then deliver tna argo to the importer’ (ammnerciel Law Ruvisw, ©, Vil.ieva, £004 oct), Nature of bus'ness? Ik Ie a pvbiie utity, Uischarging funetiony which re je wily inv stad wilh public interest, tH mn oan BN Rede College of Law Lraniney: 1 Sieiar to a weishouseman (Lue Kian vs Maia Roitouct 21 SCRA 8), 2 Similar to a common curr (Northern Mators ¥8. Pringe bia 107 PHIL 265) 3. Solidarly able with ine commen earier Note: ln order sha! the arrasue operator may bo hold Habla, the eorsignes must prove trat tne dumaye Was due to the nugigerice end vine tre ‘Goods are in the custody of the arrasire operator iHanlord Fire toseranze vs. &. Razor, Iho, 21 SCRA 461), + The togal r and the a depowitor eommon Garren consignae and the errastre operator, Since It ls the duty of tha arraste cperator to take 900d cure of the goods Uiat are in ls custody und 19 daiver them In good condilon to the! Gonsignge, such recpor.siolty also davoive upon ‘tha carrier (Flrenian's Fund Insurance Co, vs. idutro Post Servica, 182 SCRA 485). Stevedoring Service + The carrlaye of goods fiom the warehouse or iar (0 the holds of the vessal (Chief of Stalt Vs. CIR, 127 Phil. 517). + As understood i the port business, the term consists of the handling of cargo’ trom tha old of tho ship to the dock, in case of plare side unloading: or 10 a oarge, in case of unlording at sei, (Anglo-Fli Trading Corp, ve, ozaro, “24 SCRA 495 (1993), + The logcing on the ship of oulgeing cargo ie Roamer vsag! fernreltc LE "7 fawn. haledy ne Bape ver loa Wicoabui. a Greialyrobabld Ain jne~conta Handise jor, Sr acival fy PEt ass shissuruuce, 242Bean Meda Lotiege of Lavy 7 lof: In artar (2 altebute 6 the onder any damage te the shipmeat (tat may be found, Ihopacton ot (10 ood’, shout bw done pier ‘dp (Benkors and Manure clurns Assute%ee Corp. vs, GA, 214 SCRA #23 11992) ‘i PEAT TAT TE APPLICABILITY, ‘The transportation ‘nual be: 4. Walerhnarlime tensportotion: 2, Far the vattisce of geod and 3. Overseasintematanniitoraign ("40m foreign port lo Painpinn po!) © th cen by pppliod In defanatle see transpertalion if aqieed upon ty the parties (Cinuse paiement or purarnoun' ciausa), IMPORTANT FEATURES: ‘Amount Of Carrlor's Liability + Bee, A(B) rats tho Habity tnt ' rat at $500 fe oackage n¢ eustnmery ralght wnit wales: the nature and vaiue of such goods ts Gaclared hy tho shloper, This mm decmad Incorporated In the bill of lading aven if not menioned in it (Eastern thioping vs. 1AC, 130 SCRA 462). + Note that At 1740, NCC. applies 19 Somestlefintor-isbandicoastuiice trade. +The package/cotiainer contumrinted by the faw to imi the lsbilly of the exnnar should be sensibly related to the unit In whic’ the sniper packed the grots and deserted therein Such ‘cantainr” must be given th: gam? fenning ana classifization asa package’ and crstomary frelgh int” (Abait 2 Shipniig Com. vs, CA, 188 SCRA 367). NOTICE OF DAMAGE (Soe, 3/6); Rates: 4. Patent domoce: shipper show! flo 3 clam ‘with the enrtisr Immediately unon dallve.y 2, Untent damagy: shipger should Ms ¢ elaley with the carder wehin thres days from delivery Note: The fil of @ notice of cinim it not @ condition pracsdent, PRESCRIPTIVE PERIOD Action fat loss 0, damage to the cnt Jo should be ‘brought within one yeur afer: 4. Gellvery of the goods {caivered bul aameged gootls}; or 2. Tha dale when the goods shuts have beer delivered (uunstolivery) (See. 9/6). “Lore of Dumnge’ au applied 10 tho COGSA MEMUE: (AID IN COMMERCIAL LAIY 215 conlempinies a situation were no dalivery at ait twas ride by the ahinner of the goods nesnuse the same tind poriched, gore oul of fammarct oF eanpeatw Watch a way that thelr exinienc id Unknown of they cannot bo recoverad. IT 30 NOT INCLUDE A SITUATION WHERE THER WAS NORD A DELIVERY ~ BUT DELIVERY To. sie WRONG PERSCN OR A MISOELIVERY. (Ang_vs. Ameriann Stemehip Agentins inc, 19 SCRA 129 11967) and riamage ‘rising trom dalay or late dolivery (Mist! O.S.K. Linas Lis vs CA, 287 SCRA 366 [1998). In auch histonn tho, Givl Gado nlos on proseription shat apply ‘The uns.yort prescriptive pariod Is suspenidlad by, 4, The owprans agreament of the prrtios Unworant Shippiog Linas, Inc, vs, 1AC, 100 ‘Sona 170 {1990), 2, The fling of an ection in court tint Mis dimnianed (Stovons & Co. v8, Nontoutschor Lioytt, BSCRA 160 (1562). + The one-year porlod shall rin trom dohvory of the last packago ant Is not suspenited by oxtrajutictal demane, Roanannt 4. Mallers alloeiing ransnertation of yonds by ‘soa should bd decided ns shortes! tina co possible, 2. Tha Givi Code doas not apply ta a special Inu tke GOGSA (Doin PIs, I Co, 148 SERA 110), 4 The ons-yert period shat run from delivery to tha arrasire oparator nnd not te the canslinen (Union Garba Phils, Ing. vs, Maui Raitt Co, 77 SCRA 359 (1917). +The ins era ta ight ol ae 4s bourdyby this (a "Ae ncriptive peviad. Howe Hebignpt BO a (ereausa th CoAT tha wag it TH cel bh dortrSBRBILSIpMrBadlGh 40 welts CEM Stadrahonts-Intm So; ere, AB BORA Si ron! sf o orn ase—246.12009 CENTRALIZED ban OPERATIONS 2 Coinpeneation allowed 19 persone by whose yolurtiry axsistance a shig at sea o° hor ‘Gitgo of both hava beun saved In whole oF in part front impending wea perl. or such Bfopurty recovered trem acws: peril or joss, BE in casos of shipwreck, daralict oF racagture, Raquisitoe toa valid suivage ¢tulm 1. Valid object of selvago; 2 Ghject must hava beun rxposed to marine + aril (net pers of the ship); 9. Services voluntarily “rancered whan not Faquired ws an existing duly or fram special contract 4) Sarvicos are succasslu, total or paral A salvar, In viow of the marine lav, has an Interest In the propery, This is called a ilen, but i Never goes, inthe absence of a contract Sxprewrly made, upon tha (uoa of daxt, He is, to ab intonls and purposes, a joint owner anit i tia ploverty Is lost he must buur his shore kw the Other Joint owners (tunyor vs. Syedih East Asiatic, 34 Pil 170 (191). Subjects of Salvagu: 3. Ship tsal; 2. Jetsn = goods which are cast Info the ¢a, 3, Flotsam ‘or Flotsam ~ goods ‘nish leat Upon the seu wien cast overboard: 4: Ligan oF Layan = goorts cast into the $2 tied 49.2 buoy, 60 that they may be found again by tha owners (p.173, Jceyo Dine), Pocsons whe have no right to a reward ror wolvag 1. Grew of he vanaal saved: 2. Person who communcad Selvage in spite ot ‘opposition of the Captain or tis repre wuntative 3. In accordance with See. 3 of the Saivane Lav, @ puson who fails to daliver a swivaged wesuel oF curgo to t's Golecior of Custo.ns, Doraiist = a ship or hor cargo nich ip lubandonad and devertud at sua vy thoss wre ary 46 ehovge of it without nyy hope of recuverin I (or without ay intuition af fetuining toi + Tha Intantion of thosu ia charye rust oe. ascortained. If these in sharge alt with the Intention “of retwining, or of procuring assistance, the propaity Is nut oaralci, but if they quitied he properly with tha Intention of finally feaving kits doruiiet and a change ot {hair intention and an attempt to return wal sot change its atu (Eauyur & Gi honer vs Swadien Last Asietic Co 14g, 34 Pluk 178 yrs). a a Say Dleda College of Law + itis clear thet the intion to raturn is sight, he salvage wich was done thereaner ia considered Valid (Notes cind Cusus on tho Law on Teanspetalion und Putiio Wiive, Aaquino, T. & Harnende, 2, 2004 3p. 70). + When the contact created is one of towage, Ganly the owner of the towing vassel, (2 tne exclusion of the crew of suid vassel, iney ba gnlitad te tompneration (aries ve. Go Thong and Co, 7SCRA 838). [SAFALVAOEGI NES NT EIOWAREL Govarnad by spacial aw (Ast | Grvarnad by Civi No. 2616) Code an cgntract of anne : fH eas Woauras Success 8 hat 199 puy.ngnt requirad Thaat “beans wih Ow | Ont the cower oF Sesto weve! 2 | He tugbo onnar is [Vaewsl naad nolo] Walved in an aceldunt bear aaiicaea area [Bras oreo cao RULES ON SALVAGE REWARD. 1. The rewars le fixed by the RTC judge ta tn: ‘bserice of agroersent oF where tha latter is excessive (Suo. 9), 2 The reward should constitute a sufficient ‘compensation for the ovtiay and effort of the volvore und should ba liberal enough to Induce othurs to render services in suniar ‘emerguncios in the future, It Gold (no claim telng made witain 3 ons at oH th pi loos nck ye pert rabieteramat of he bat erste ve 4 eva “Runge riba iA etek Cort is the on EW 4 oonion =p tMibsetinon ye to) a nM et bb e : : a pase ‘ OY Py ns rng a culyfan, Bsn College of Rab VIARSAW CONVENTION OF 1929 (WG) Warraw: Gonvanilon is. an nqreamant among ‘overelgn countrien cancerring tie ragut an Ia 0 ‘uniform manner of the cenuitions. of intfrnnilanal ‘transportation ty alt In respect of ins documents Used fer Luch transportation and of the tility of Heine siqund on Getohor 19-1029 in Poland, Purpose: To protect the emying alr tranerariation Industry nnd 16 secure tho uniformity of recavery by tha passengyrs. Applicekiity: ‘Tha trans arlation must he: 4, Intemational traneportaticn, 2. Alctrangnartalion; ans 3. Carriage of passengers, Liggage or gouds. + Tre WE ahall also apply to fartutos avant affecting taaportition by aircraft performed by en ai transportation enterpriso. +The Convention ig tkewise applenhie to air trenapartation by legal entities constitvled under public law of the High Contracting Perliss. The Conversion does smut apply to Kansporion stormed under I< terms of any internatienal nostal convention, Inturnational transportation - eny transportation In vibleh the place of departure and the place of vuastination are ailuated either: 4. Within the torritorlos:of two High Cuntracting Pains ragardians of whether oF not there he a keaak in tha ratgpoviution oF Iransshipmust, oF 2, iwithia "Ne “lenitery oot a singia High Contrasing Party, I trore Is nn. agrond ftlorning placa within a tarritary subjuct t0 Uc sovereignty, mandate or author of another power, even thounh thot pows’ is not a Dery to the Convention, Cround inp’, Am. Jur) Effuct of ihe abnonce of an agreement concerning a stopping piace 2 tho tranapn tation aval rot be ceneted to be Inte-nationnl for tre ourposua of tho Cunveniion + Tracazortation to be performed by severe! nuceanalve ai seerlars chloe dermad to be ona uadivicud Wrennpariation, If it has been ragntded by the partien ar a s!ygle oprvation, whether It hna Been agreed upc unter the foin of uw single centract of or A atior of conttacis, und it ahall not lose is internation! chatuctat marely besaus’ one contract ef a sarles of e:ntracts Is to oe pestered onliraly _ MEMORY AID.IN COMMERCIAL LAW] 237 ‘within # testitory Bubject to ihe sovarelanty, suztrninly, mandate, ar avthority of the ewe Hig y Contracting Party (Art, 1 See.d). High Gontiacting Party + Is one of the oriyiral anies to tho convention. Ahan Lapplientle 1. wien pub Batley Te contending; 2. Wethe raquramante under the Gonvantion are fot complied with, gansnont ae ei CHT a bh Passengor [neces cal haggean GORSEQUENCE OF IRREGULARITY OR LOSS OF PASS NGEN TICKET/ BAGGAGE CHECK! AIRWAY DILL + Doos not affect tho existence and validly of the contact of transportation which shall everthaless be subject to tha rules of the Goriventio. + Ifthe carrier accepts the passenger without n passenger Wekel, or 8 baggage without 9 bagnage cheek, 0: goods witheut an airuray bil, the exrrer ahall not be entitled to curl at thu provisions of the Convantion whlet exclude or tits Nabsity, Ainuny bit «a dogument wh the eonsignoe 1 uiged in mae out ad han over to te er Fanetions: : fain spina facto evidence of 1 ine euncsionat tne cones 3, Wh calor tne good 4. Ih en gn of etgpptten 4 the weislte eye oh dare othe wa gone’ ib manine paca | ie be atiorschad SINS cee [i Ee Arena ys + ele fae Nes it at ind Ake ue vy boa ea . Be Inorhsipuistor Cy ih oh ee ‘Sho ma tvs: PAL, oe wiamuity One ened 1, Genth of Tanah Dri.genger if tha aecicent ‘ctuining I 106k place oi board the wcratl oF Mier toa mig yh ipninat ina CRA 223; TT28 |2009 CENTRALIZED WAR OPERATIONS |i the course of its operations of embaring o” dlaemberking (Art, 77); 2. Destruction, loss ar damage to any’ baggage 7 Sf "goods, if it took place dunng ine “tenn sportition by alc At, 48); and. Traheportation wy alr = Tie period diving which tho baggage or ysads ars in the cnarge cl tas cairer, whetnar ia an eltpart ‘or on bourd an alrcratt, of, In cas of @ lending Gulside an witoor, In uny place whateoovar. it fogudes any transportation vy lund or weler ulside an ‘alroort It euch takes place In the parformance of @ contrac} for transportate y by alr, for the purpove of iuauling, delivery, ot raneshipawat, 3. Doiay In the traneportalon of passangers, ayange 0: goods (Art, 19). Noto: The Haque Pratucol amended the WC bs ‘umoving the provision that Ifthe alline took ait agossery stens to avoid tha damage, it gculd oxculpate Haelf camplotaly (art, 20/1); Attala vs IAG, 192 SCRA 9/1960) LIMIT GE LIABILITY (art, 23, ay amonded by Guniomala Protocol; 1971, Aldgla vs, AC, Ibid) Passongorn Gunora‘ Ruta; $100,000 per posseagor Exception: Agreement to 8 niches tit Chockedn baggaga Gonral Rule: $20 per kilogram Excuption: li crse of special ductoration of vabie und peyment of a supplumuntory sum. by Sonsicnor, caniur is lable to pay nol more thar ha daclarad sum unigse It proves the sum, 1 gwater tian neal valve, Hand-earriod buggayo + }1000/pa3 songur Goudy to ba shippou Garver! ula $20 per kionran Uxcuption: tn ause of voocial duct allon of value nd payment of a supplumentary sum by Consiacr, carrier Is liabla tu pay not more than tho Caciared sum unless it proves the sum is gevatyr man actual value, + An. gorsament relieving tne cartier foi Mabiity oF fixing @ lower limit Is null andl void (ant. 23), Hg nee Biron Coutere of Lay +. Catrler Is not entitled to the foregoing limit it the Uemagy is caused ty wilful misconduct or dofauit on ks part (Ait, 28), +. Thus, the WG dgoas not operate as an Exclusive onumeration of the Instances of an ‘usolute limit of the extent of labilly, It deas Fol preciuce the application af Wie Civil Coda tind osher pertinent toca laws, It does not regulate or exclude labllly for olnar breaches of conliact by ine carter, oF miuconduct of its uimployees, or for spine particular or oxceptionai type of damage (Altalia vs. «AG, 1y2 SCRA 9 (1990), + I Panam vs. ‘AC (164 SCRA 260 (198A), tha WG way aoplied we regards the limitation (00 tha carror’s lubilty, thera baling a simple {os4 of baggage winout ony Improp eonduet op the purt ct tha offlals or employees of the stale or other spacial lrlury sustained by the passenger, + Alfa vs.-IC (Ibid) citéd KLM Royal vs. Tuller, where thy WG has Invariably been haid applicable, or as not restrictive of the arilur's ability, where Inere was ealistactary vvidence of malicw er bse fallh altibutable 19 its office. and employees. + An exception to te rule of limited lability 1s whe the benofis have been waived as tne (or lalled tc ralee mely objections during ia whess quaslions and answers regarding the actual claims end damages sustained by the pasrcnger wore assed (British Ainways vs. CA, 285 SCRA «50 (1986), ACTION FOR OxMAGES Auten complontrustme mace win 2 Nios tentacles Sonne tt Foye haevsoceet a incase of dalen a Gaye tom oct ot Paar ee Frid" complaint; Iq.q-pandKian prec waanoot “Ud AE tne Poke davon excopt, &40 GLitidld 0} * ful i Ki o| » role bel a ite jute of brava We iredtgye ‘Spe robe athe See ae Sa Aa Nai of eapa Bhi + in Unite 11999)) “where UH Wy (318 SORA $75 ‘aking mployed BE nd ee aie Se(Beg Beda Callege of IN ante on nmin detaying ‘acties, tha two-yenr proseriptive eriod was 10% applied Rules in case of Various Sucerssivu Carriers 1 Coniagia of gasseatters General Ruler Action if Med only agin the senier in which tha accident or ttation Assvclullon (IATA) aca under a ceneval pool partneeship agroemen! ssicrcin thay fet ns agent of each plhar in the insuunyse ff tiakots. to conleastad paunqnrs: 19 boost licknt salar worldw'ce anc at the some: time prove pascengurs nasy acest to alflines wile are cthorwise Inagceanibie In some par's of the \vo«d famonann Avs vs, GA, 327 SCRA ACR (2000). 4 Wneer a generat pour partnarsiip agreamont, the tickel-istlng airlino is the principal in © contract of enrringe wile the andoisea-sifine Is tho agent. The obligation at he formar ramained) and cid rot catee aven when tha breach fcrurted not an Ne ovih fight But on that of another alling waileh hac! uncertnicen to earry tha pacsangars 10 one of {hale deaonatiana (Chinn Atdiuas vs, Ghlok, G.RNo 15222, July 30, 2073). + Atithe option of the rlaintif, the aetinn tne demagaa may be filod In sno: 4, Cour 6i domicile of the carrier, 2. Coun of ils Errclpal plice af Fusiness; MM ItY AID IN COMMERCIAL LAW! 219, 2. Court where It has a place of Dusiness through which the eaniract ‘has bean made; or 4. Court of tha glace of destination (Ar. 24]1)). Hote: Lie the pasgongara ‘uttimat destination’ not tan agreed stopping poor that ceterines the country whoro auil Is to be filed. The place of destination determined by the toms of the contract of Parris. + Ths Burn of actlon provided ie Art. 2001) ina matter of jurisdiction rather thon of venue (Sonios til vs, Northwest 21) SURA 286 [1992 2 C.d.S.!.