III.

CARRIAGE OF GOODS BY SEA

ACT/COGSA (C.A. No. 65)
APPLICABILITY
The transportation must be:
1. Water/maritime transportation;
2. for the carriage of goods; and
3. overseas/international/foreign
(from foreign port to Philippine
port).
It can be applied in domestic sea
transportation if agreed upon by the
parties.
(Clause
paramount
or
paramount clause)
IMPORTANT FEATURES:
1. Amount of carriers liability
2. Notice of damage
3. Prescriptive period
AMOUNT OF CARRIERS LIABILITY
Under the Sec. 4(5), the liability
limit is set at $500 per package or
customary freight unit unless the
nature and value of such goods is
declared by the shipper.
This is
deemed incorporated in the bill of
lading even if not mentioned in it.
(Eastern Shipping vs. IAC, 150 SCRA
463)
Note that Art. 1749, NCC applies to
domestic/inter-island/coastwise trade.
NOTICE OF DAMAGE (SEC. 3(6))
Rules:
a. Patent damage: shipper should file
a
claim
with
the
carrier
immediately upon delivery
b. Latent damage: shipper should file
a claim with the carrier within three
days from delivery.

(Mitsui O.S.K. Lines Ltd. vs. CA). In

such instance the, Civil Code rules on
prescription shall apply.
The one-year prescriptive period is
suspended by:
1. The express agreement of the
parties
(Universal
Shipping
Lines, Inc. vs. IAC, 188 SCRA
170)
2. The filing of an action in court
until it is dismissed. (Stevens &
Co. vs. Nordeutscher Lloyd, 6
SCRA 180)
The one-year period shall run from
delivery of the last package and is not
suspended by extrajudicial demand.
(Dole Phils.,Inc. vs. Maritime Co.,148
SCRA 118)
The one-year period shall run from
delivery to the arrastre operator and
not to the consignee. (Union Carbide
Phils, Inc. vs. Manila Railroad Co.,SCRA
359)
The insurer exercising its right of
subrogation is bound by the one-year
prescriptive period. However, it does
not apply to the claim against the
insurer for the insurance proceeds.
(Fil. Merchants Ins. Co. vs. Alejandro;
Mayer Steel Pipe Corp. vs. CA)
ARTICLE 366
Applicability
Domestic/inter1.
island/coastwise
transportation
Land, water, air
transportation
Carriage
of
goods

Note: The filing of a notice of claim is

not a condition precedent.
PRESCRIPTIVE PERIOD
Action for loss or damage to the
cargo should be brought within one
year after:
a. Delivery of the goods (delivered
but damaged goods); or
b. The date when the goods
should have been delivered
(non-delivery). (Sec. 3[6])
Loss or Damage as applied to the
COGSA contemplates a situation
where no delivery at all was made by
the shipper of the goods because the
same had perished, gone out of
commerce, or disappeared in such a
way that their existence is unknown or
they cannot be recovered. Thus, it is
inapplicable in case of misdelivery or
conversion.
(Ang
vs.
American
Steamship Agencies Inc.) and damage
arising from delay or late delivery

COGSA Sec.3
(6)
International/
overseas/foreig
n (from foreign
country
to
Phils.)
Note: subject to
the
rule
on
Paramount
Clause
2.
Water/maritime
transportation
3. Carriage of
goods

Notice of damage
Condition
1. Not a condition
precedent
precedent
2. 24-hour period 2. 3-day period for
for claiming
claiming latent
latent damage
damage
1.

Prescriptive period
None
provided; One year from
Civil
Code the
date
of
applies.
delivery
(delivered
but
damaged
goods), or date
when the vessel
left port or from

the
date
of
delivery to the
arrastre
(non-

delivery
loss).

or