ABOITIZ SHIPPING CORP. v CA 1st petition: Malayan Insurance Co.

,Compagnie Maritime Des Chargeurs Reunis (CMCR), FE Zuellig hipments !ere supporte" #y their respecti$e #ill o% la"ing an" insure" separately #y Malayan against the ris& o% loss or "amage Malayan sought reco$ery De%ense: M'( ). *#oiti+ !as sea!orthy, it e,ercise" e,traor"inary "iligence, loss !as cause" #y a %ortuitous e$ent R-C: *#oiti+ lia#le C*: a%%irme" During pen"ency o% appeal the .*F/*C case !as promulgate" (sin&ing !as cause" #y negligence o% o%%icers) /ia#ility #ase" on the "eclare" $alue o% the shipment in consonance !ith the e,ceptional rule un"er section 0(1) o% C2. * 3n" petition: *sia -ra"ers Insurance Corp., *llie" .uarantee Insurance Corp. Reco$er #y !ay o% su#rogation the cargoes insure" #y them an" lost in the sin&ing $essel o% M'( ). *#oiti+ De%ense: %orce ma4eure R-C: *#oiti+ lia#le ought reconsi"eration, shoul" ha$e consi"ere" the %in"ings o% the 5oar" o% Marine In6uiry that the sin&ing !as cause" #y a typhoon an" shoul" ha$e applie" the real an" hypothecary "octrine in limiting the monetary a!ar" in %a$our o% the claimants 7 DE8IED C*: a%%irme" 9r" petition: E6uita#le Insurance Corp. Reco$er #y !ay o% su#rogation the $alue o% the cargoes insure" #y E6uita#le that !ere lost in the sin&ing o% the $essel R-C: *#oiti+ lia#le, guilty o% contri#utory negligence C*: a%%irme", loss o% the cargoes an" sin&ing o% the $essel !ere "ue to its unsea!orthiness an" %ailure o% cre! to e,ercise e,traor"inary "iligence :'8 *#oiti+ can a$ail limite" lia#ility on the #asis o% the real an" hypothecary "octrine o% maritime la! De%ense: *#oiti+ lia#ility shoul" #e limite" to the $alue o% the insurance procee"s o% the lost $essel plus pen"ing %reightage an" not correspon" to the %ull insura#le $alue o% the cargoes pai" #y the respon"ents (#ase" on the .*F/*C case) -he only time the limite" lia#ility rule "oes not apply is !hen there is an actual %in"ing o% negligence on the part o% the $essel o!ner or agent, there has #een no actual %in"ing o% negligence on the part o% the petitioner (.*F/*C) RE*/ *8D ;<)2-;EC*R< D2C-RI8E 7 shipo!ner or agent=s lia#ility is merely co>e,tensi$e !ith his interest in the $essel such that a total loss thereo% results in its e,tinction. ?8o $essel, no lia#ility@ *rts. 1AB, 1CD, A9B Co"e o% Commerce 7 inten" to limit the lia#ility o% the shipo!ner o% agent to the $alue o% the $essel, its appurtenances an" %reightage earne" in the $oyage, pro$i"e" that the o!ner or agent a#an"ons the $essel (essel, totally lost 7 a#an"onment not re6uire" /ia#ility o% shipo!ner or agent 7 e,tinguishe" Insurance ans!ers %or the "amages

EECE)-: loss or in4ury !as "ue to the %ault o% the shipo!ner an" the captain -here is a categorical %in"ing o% negligence on the part o% *#oiti+ %or %ailing to ta&e a course o% action that !oul" pre$ent the $essel %rom sailing into the typhoon (e,tra2RD "iligence #e%ore, "uring, a%ter the storm), 82- entitle" to limite" lia#ility rule DELA TORRE v CA Crisostomo Concepcion o!ne" /C->Fosephine 3'1'1CA0 7 Concepcion entere" into a ?)reliminary *greement@ !ith Rolan" "e la -orre %or the "ry>"oc&ing an" repairs o% the $essel as !ell as %or its charter a%ter!ar"s, it is to #e chartere" %or )1DG a month, ma,. perio" o% 3 yrs H'3D'1CA0 7 Concepcion I the )hil. -rigon hipyar" Corp ()- C), rep. #y Rolan", entere" into a contract o% agreement !herein the latter !oul" charter /C-> Fosephine retroacti$e to May 1, 1CA0 A'1'1CA0 7 )- C'Rolan" su#>chartere" /C->Fosephine to -rigon hipping /ines (- /), o!ne" #y Rolan"=s %ather, *gustin "e la -orre 11'33'1CA0 7 - /, rep. #y Rolan" per *gustin=s )*, su#>chartere" /C->Fosephine to Ramon /arra+a#al %or the transport o% cargo consisting o% san" an" gra$el to /eyte /C->Fosephine arri$e" at )hilpos, Isa#le, /eyte, #eache" near the 8DC :har%, $essel=s ramp lo!ere", unloa"ing #egan, payloa"er !as on "ec& scooping a loa" o% cargo, $essel=s ramp starte" to mo$e "o!n!ar", $essel tilte" an" sea !ater rushe" in, $essel san& Concepcion "eman"e" )- C'Rolan" to re%loat $essel, "i" not materiali+e Concepcion: sum o% money an" "amages against )- C'Rolan" )- C'Rolan": 9r" party complaint against *gustin *gustin: 0th party complaint against /arra+a#al 7 DI MI ED ;u#ert ungayan, chie%mate o% /C->Fosephine I un"er the employ o% - /'*gustin, a"mitte" that it !as them !ho is in charge o% operation though respo o% loa"ing an" unloa"ing !as un"er /arra+a#al R-C: e%%icient cause o% sin&ing !as the improper lo!ering or positioning o% the ramp :'8 limite" lia#ility rule is applica#le *rts. 1AB (%orerunner), 1CD, A9B (collision) Co"e o% Commerce -he only person !ho coul" a$ail o% this is the shipo!ner, Concepcion, the $ery person the rule has #een concei$e" to protect It !oul" #e a#sur" to apply the rule against him !ho, in the %irst place, shoul" #e the one #ene%itting %rom the sai" rule Charterer "oes not completely an" a#solutely step into the shoes o% the shipo!ner or e$en the ship agent #ec. there remains con%licting rights #et. the %ormer an" the real shipo!ner as "eri$e" %rom the charter agreement -he charterer or su#>charterer, !hose rights cannot rise a#o$e that o% the %ormer, can ne$er set up the limite" lia#ility rule against the $ery o!ner o% the $essel )ri$ate carriage 7 contract

Rolan" lia#le un"er *rt. 11AC 8CC, not returne" a%ter repairs, 3 yrs )- C lia#le to Concepcion un"er *rt. 1HH1 an" 1HHB (lessee) *gustin lia#le un"er *rt. 1H11 (su#lessee) *ll 9 lia#le un"er *rt. 11BD 7 %ailing to insure, contra$ention

C*: mo"i%ie", a#sol$e" D5), 8DC not lia#le o% any lia#ility arising %rom cre"it a"$ances, not ac6uire" o!nership, merely assume" control o$er mgt an" ops :'8 8DC, D5) or #oth are lia#le to )olian" on the loan accommo"ations an" cre"it a"$ances incurre" #y .alleon :'8 )olian" has a maritime lien en%orcea#le against 8DC, D5) or #oth 8DC, not lia#le un"er /2I 1111 7 simply "irecti$e, not a $ali" source o% o#ligationK ho!e$er, e,tra2RD legislati$e po!er, to ha$e %orce o% statute: gra$e emergence or threat or imminence 2R legislati$e %aile" or !as una#le to act on the matter 7 nothing suggests that it !as issue" to a""ress the security o% nation 8DC, not lia#le un"er Corp. Co"e 7 merger, issuance o% cert. o% merger #y EC D5), not lia#le un"er /2I 1111 7 grant o% authority, D5) has not acte" as surety or guarantor

POLIAND INDUSTRIAL LIMITED v NATIONAL DEVT COMPANY *sian ;ar"!oo" /imite", a ;ong Gong corp., e,ten"e" cre"it accommo"ation in %a$our o% .alleon hipping Corp. .alleon engage" in the maritime transport o% goo"s -he a"$ances !ere utili+e" to augment .alleon=s !or&ing capital "eplete" as a result o% the purchase o% 1 ne! $essels an" 3 3n" han" $essels -o %inance ac6uisition o% $essels, .alleon o#taine" loans %rom Fapanese len"ers (-aiyo Go#e 5an& /t"., Mitsui 5an& /t"., Maru#eni 5enelu,) .alleon an" D5) e,ecute" a "ee" o% un"erta&ing !here#y D5) guarantee" the prompt an" punctual payment o% .alleon=s loans, .alleon promise" to secure a 1st mortgage on the B $essels, mortgage contract in %a$our o% D5) Marcos issue" /2I 1111 "irecting 8DC to ac6uire the entire sharehol"ings o% .alleon, D5) !as to a"$ance to .alleon principal amt an" interest o% .alleon=s maturing o#ligations .alleon an" 8DC agree" to e,ecute a share purchase agreement %or the trans%er o% .alleon=s sharehol"ings /2I 11C1 7 %oreclosure o% the mortgage on 1 $essels %or %ailure o% .alleon to pay its "e#t "espite repeate" "eman"s %rom D5), e,tra4u"icial %oreclosure, ac6uire" #y D5), sol" to 8DC .alleon hipping Corp 7 8ational .alleon hipping Corp *sian ;ar"!oo" assigne" its rights to :orl" Jni$ersal -ra"ing an" In$estment Co. :orl" Jni$ersal assigne" to )olian" *6uino issue" *2 H0, 8DC I )hil E,port an" Foreign /oan .uarantee Corp (-ra"e an" In$estment De$t Corp) to trans%er some o% their assets to the 8ational .o$t thru *)-, among those trans%erre" !ere the 1 .alleon $essels )olian" ma"e !ritten "eman"s on .alleon, 8DC, an" D5) %or satis%action o% outstan"ing #alance, soli"arily lia#le. )re%erre" maritime claim De%ense o% D5): no lia#ility, "i" not sign any memo to act as guarantor, /2I 1111 immoral an" unconsti De%ense o% 8DC: merely acte" as a manager, "i" not assume lia#ilities, no purchase an" sale agreement, "eli$ery o% shares o% stoc& "i" not ta&e place R-C: D5) I 8DC to pay

Maritime lien 7 *rts. 1BA (inapplicaple) I 1AD (repeale" #y )D 1131: hip Mortgage Decree o% 1CBA) Co"e o% Commerce )D 1131: secs. 3, 1B (pre%erre" maritime lien), 31 ec. 31 7 e,pense must #e incurre" upon the or"er o% the o!ner o% the $essel or its authori+e" person an" prior to the recor"ing o% the ship mortgageK it must #e esta#lishe" that cre"it !as e,ten"e" to the $essel itsel% 8DC, lia#le on maritime lien Maritime lien L mortgage lien, in spite o% the trans%er o% o!nership, lien not e,tinguishe" Maritime lien is insepara#le %rom the $essel an" until "ischarges, it %ollo!s the $essel

HEIRS OF AMPARO DE LOS SANTOS v CA M'( Min"oro, Manila to 8e! :ashington, *&lan, typhoon ?:elming@ Mauricio "elos antos, common la! !i%e an" 0 chil"ren on #oar" :'8 Maritima is negligent R*-I28*/E F2R 1AB: to o%%set against the innumera#le ha+ar"s an" perils o% a sea $oyage an" to encourage ship#uil"ing an" marine commerce /imite" lia#ility "octrine applies not only to the goo"s #ut in all cases li&e "eath or in4ury to passengers 1AB spea&s only o% situations !here the %ault o% negligence is committe" solely #y the captainK !hen shipo!ner is li&e!ise to #e #lames, 1AB "oes not apply Common carriers 7 8CC Mo"ern technology #elie the contention that Maritima "i" not ha$e any in%o a#out the typhoon Maritima "isplaye" lac& o% %oresight an" minimum concern %or sa%ety o% its passengers, 3pm "eparture "elaye" %or 0 hours 8ecessary repairs !ere ma"e, li%e sa$ing e6uipment an" na$igational instruments installe", no e$i"ences that a ra"ar !as installe" !hich !oul" allo! the $essel to na$igate sa%ely

*gent 7 !here such agent is not the o!ner himsel%, it is un"erstoo" to #e the person entruste" !ith the pro$isioning o% the $essel, or the one !ho represents her in the port in !hich she happens to #e Di%%erence in the la!%ul acts an" la!%ul o#ligations o% the captain an" the lia#ility !hich he incurs on the account o% any unla!%ul act committe" #y him 1st: acts #ene%icial to the $essel may #e en%orce" as against the agent %or the reason that such o#ligations arise %rom the contract o% agency 3n": limite" to the $essel an" "oes not e,ten" %urther :hat "istinguishes maritime %rom ci$il an" mercantile la! is the real an" hypothecary nature o% the %ormer RE*/ nature: 1. -he limitation o% the lia#ility o% the agents to the actual $alue o% the $essel an" the %reight money 3. -he right to retain the cargo an" the em#argo an" "etention o% the $essel e$en in cases !here the or"inary ci$il la! !ill not allo! more than a personal action against the "e#tor or person lia#le 3 reasons !hy it is impossi#le to "o a!ay !ith these pri$ileges: 1. the ris& to !hich the thing is e,pose" 3. -he real nature o% the maritime la!, e,clusi$ely real, accor"ing to !hich the lia#ility o% the parties is limite" to a thing !hich is at the mercy o% the !a$es R*-I28*/E: the policy !hich the rule is "esigne" to promote is the encouragement o% ship#uil"ing an" in$estment in maritime commerce It is 4ust that the o!ner shoul" not #e #oun" %or the acts o% the master, e,cept to the amount o% the ship an" %reightK ot!, he !oul" run the ris& o% #eing ruine" #y the #a" %aith or negligence o% his captain, an" the apprehension o% this !oul" #e %atal to the interests o% na$igation It is 6uite su%%icient that he #e e,pose" to the loss o% his ship an" o% %reight, to ma&e it his interest, in"epen"ently o% any goo"s he may ha$e on #oar" to select a relia#le captain -he $essel ha$ing totally perishe", any act o% a#an"onment !oul" #e an i"le ceremony LOPEZ v DURUELO *ugusto /ope+, personal in4uries in%licte" #y reason o% negligence o% Fuan Duruelo an" *l#ino Fison Em#ar& upon the interislan" streamer an Facinto to Iloilo 5oat !as at the time in the anchoring>groun" o% the port o% ilay, 2cci"ental 8egros, some hal% mile "istant %rom the port /ope+ em#ar&e" at the lan"ing in the motor #oat Fison, engage" in con$eying passengers an" luggage #ac& an" %orth %rom the lan"ing to #oats at anchor, o!ne" an" operate" #y *l#ino Fison, Fuan Duruelo, patron Engineer a#oar" the trip !as Ro"olin Duruelo, 1H y'o 10 passengers, capacity only A'C *s motor #oat approache" an Facinto, it came too near an" the #la"es o% the propeller struc& the motor #oat an" san& it at once

YANGCO v LASERNA 1pm, 1'3H'1C3B, . . 8egros, #elonging to -eo"oro <angco, le%t the port o% Rom#lon on its return trip to Manila -yphoon signal no. 3, captain !as "uly a"$ise", attention calle" #y the passengers 5oat !as o$erloa"e" as in"icate" #y the loa"line !hich !as H>B inches #elo! the sur%ace o% the !ater )assengers !ere o$ercro!"e", 1ADK $essel capacity: 139 *s sea increasingly #ecame $iolent, captain or"ere" $essel to turn le%t to return to port, in the maneu$er, it !as caught si"e!ise #y a #ig !a$e, capsi+e an" sin& Many passengers "ie" CFI o% Capi+: reco$er sum o% money *%ter the ren"ition o% 4u"gment, <angco, #y a $eri%ie" plea"ing, a#an"on the $essel together !ith all o% its e6uipments *#an"onment "enie" *ppeal: a%%irme" :'8 the ship!oner or agent, not!ithstan"ing the total loss o% the $essel as a result o% the negligence o% its captain, #e properly hel" lia#le in "amages %or the conse6uent "eath o% its passengers *rt. 1AB Co"e o% Commerce -he article appears to "eal only !ith the limite" lia#ility o% the shipo!ners or agents %or "amages arising %rom the miscon"uct o% the captain I8 -;E C*RE 2F .22D !hich the $essel carries, #ut this is a mere "e%iciency o% language an" in no !ay in"icates the true e,tent o% such lia#ility -he consensus o% authorities is to the e%%ect that not!ithstan"ing the language o% the a%ore6uote" pro$ision, the #ene%it o% lia#ility therein pro$i"e" %or, applies in all cases !herein the shipo!ner or agent may properly #e hel" lia#le %or the negligent or illicit acts o% the captain Jni$ersal principle o% limite" lia#ility

De%ense: no right o% action, no protest presente" !ithin 30 hours a%ter occurrence (*rt. A91, Co"e o% Commerce) )rotest 82- necessary, !hat !ill apply is ci$il co"e (essel "oes not inclu"e minor #oats, only merchant ships hip (na$e) $ $essel (#a6ue) 5ut e$en i% A91 applies, un"er A9H, !ant o% protest cannot pre4u"ice a person not in a con"ition to ma&e &no!n his !ishes RUBISO AND GELITO v RIVERA Fausto Ru#iso an" 5oni%acio .elito allege" that they are the true o!ners o% the pilot #oat (alentino !hich ha" #een in #a" con"ition an" !as %oun" in a place calle" -ingloy o% 5auan, 5atangas in the possession o% Florentino Ri$era )ilot #oat #elonge" to ?.elito I Co.@ .elito partner to the e,tent o% 3'9 an" Chinaman y Mui, 1'9 .elito sol" his share to y Mui 1'0'1C11 y Mui su#se6uently sol" it to Ri$era 1'39'1C11 suit against y Mui to en%orce payment o% a certain sum o% money, cre"itor Ru#iso, Ru#iso ac6uire" $essel at pu#lic auction ale o% $essel to Ri$era !as entere" into customs registry only on 9'1B'1C11K !hile sale at the pu#lic auction !as recor"e" in the o%%ice o% the Collector o% Customs on 1'3B'1C11, commercial registry 9'0'1C11 :;2 ;* * 5E--ER RI.;*rt. 1B9 Co"e o% Commerce 7 ac6uisition o% $essel must #e inclu"e" in a !ritten instrument, !ill not pro"uce any e%%ect !ith regar" to 9r" person i% not recor"e" in the commercial registry *ct no 1CDD, May 1A, 1CDC, sec. 3, Insular Collector o% Customs !ith the %ul%ilment o% the "uties o% the commercial register Ri$era=s rights cannot pre$ail o$er Ru#iso=s