TRANSPORTATION LAW

ONLINE WEEKLY TASK-3

Date of submission: On or before April 27, 2020

1. This Online Weekly Task will be sent to the respective class beadle who is tasked to
disseminate the same to his classmates through email.
2. Each student in Transportation Law shall submit the duly accomplished Online
Weekly Task on or before the designated date by directly sending it to the email of Atty.
Emmanuel B. Palabrica – gabcompalabrica@yahoo.com.
3. The student shall explain, comment, and discuss the meaning of each provision which
will include examples or related jurisprudence as much as possible.
4. Sources/References: Textbooks, Jurisprudence, etc.
5. Format: Legal size, Font 12, Times Roman.

Topic No. 1
SALVAGE LAW

A). Explain, give example or answer the questions in each section.

SECTION 1: When in case of shipwreck, the vessel or its cargo shall be beyond the
control of the crew, or shall have been abandoned by them, and picked up and conveyed to
a safe place by other persons, the latter shall be entitled to a reward for the salvage.
Those who, not being included in the above paragraph, assist in saving a vessel or its
cargo from shipwreck, shall be entitled to a like reward.

1. Explain the meaning of Section 1.

2. What is the meaning of Derelict and give example.
3. What is the meaning of Quasi-derelict and give example.
4. The elements of valid salvage and explain each element.

Section 2. If the captain of the vessel, or the person acting in his stead, is present, no
one shall take from the sea, or from the shores or coast merchandise or effects proceeding
from a shipwreck or proceed to the salvage of the vessel, without the consent of such
captain or person acting in his stead.

a). Illustrate the situation contemplated in section 2

Section 3. He who shall save or pick up a vessel or merchandise at sea, in the

absence of the captain of the vessel, owner, or a representative of either of them, they being
unknown, shall convey and deliver such vessel or merchandise, as soon as possible, to the
Collector of Customs, if the port has a collector, and otherwise to the provincial treasurer
or municipal mayor.
a). Give example that would explain the meaning of Section 3.
 Section 4. After the salvage is accomplished, the owner or his representative shall
have a right to the delivery of the vessel or things saved, provided that he pays, or gives a
bond to secure, the expenses and the proper reward.
The amount and sufficiency of the bond, in the absence of agreement, shall be
determined by the Collector of Customs or by the Judge of the Court of First Instance of
the Province in which the things saved may be bond.

a). State the obligation of the salvor and the owner of the goods after the successful
salvage under Section 4.

Section 5. The Collector of Customs, provincial treasurer, or municipal mayor, to

whom salvage is reported, shall order:
a. That the things saved be safeguarded and inventoried.
b. The sale at public auction of the things saved which may be in danger of
immediate loss or of those whose conservation is evidently prejudicial to the interests of the
owner, when no objection is made to such sale.
c. The advertisement within the thirty days subsequent to the salvage, in one of the
local newspapers or in the nearest newspaper published, of all the details of the disaster,
with a statement of the mark and number of the effects requesting all interested persons to
make their claims.

a) state the obligations of the government official whom salvage is reported under
Section 5.

Section 8. The following shall have no right to a reward for salvage or assistance:
a. The crew of the vessel shipwrecked or which was in danger of shipwreck;
b. He who shall have commenced the salvage in spite opposition of the captain or
crew or his representative; and
c. He who shall have failed to comply with the provisions of Section three.

a) Under Section 8, explain why the persons mentioned therein have no right to a
salvage reward.

Section 12. If in the salvage or in the rendering of assistance different persons shall
have intervened the reward shall be divided between them in proportion to the services
which each one may have rendered, and, in case of doubt, in equal parts.
Those who, in order to save the persons, shall have been exposed to the same
dangers shall also have a right to participation in the reward.

a) Explain Section 12.

Section 13. If a vessel or its cargo shall have been assisted or saved, entirely or
partially, by another vessel, the reward for salvage or for assistance shall be divided
between the owner, the captain, and the remainder of the crew of the latter vessel, so as to
give the owner a half, the captain a fourth, and all the remainder of the crew the other
fourth of the reward, in proportion to their respective salaries, in the absence of an
agreement to the contrary. The expenses of salvage, as well as the reward for salvage or
assistance, shall be a charge on the things salvaged or their value.

a) Illustrate Section 13. Give example.

B). Problems:

1. M/V William was in distress and in the danger of sinking because of a very powerful
typhoon. M/V William sent a distress message/signal and M/V Maru responded.

a). When M/V Maru arrived, the captain and the crew of M/V William already abandoned
the ship. The captain of M/V Maru conducted a salvage operation despite the absence of the
captain and the crew of M/V William and they were successful in their salvage operation.
When the captain reached the shore, he changed his mind and decided to go back to M/V
William to save it. Is there a valid salvage operation on the part of M/V Maru and are they
entitled to a salvage reward? Explain.

b). When M/V Maru arrived, the captain and the crew of M/V William were still inside M/V
William but they did not have the capability of saving the vessel.. The captain of M/V Maru
conducted a salvage operation and they were successful in doing it. Is there a valid salvage
operation on the part of M/V Maru and are they entitled to a salvage reward? Explain.

2. Many of the passengers of the cruise ship were infected with Covid-19. Suspecting that the
three persons were carriers being citizens of the place where Covid-19 originated, a group
of passengers pushed them and they all fell into the water. The three were in distress and
in the verge of sinking when the 5 athletes who just came from a swimming competition
decided to jump into the water to save them. They were successful in saving these 3
persons. Is their act considered a salvage operation and are they entitled to a salvage
award. Explain.

Topic No. 2
CARRIAGE OF GOODS BY SEA ACT

A). Explain, give example or answer the questions in each section.

Section 3(6) Unless notice of loss or damage and the general nature of such loss or
damage be given in writing to the carrier or his agent at the port of discharge or at the time
of the removal of the goods into the custody of the person entitled to delivery thereof under
the contract of carriage, such removal shall be prima facie evidence of the delivery by the
carrier of the goods as described in the bill of lading. If the loss or damage is not apparent,
the notice must be given within three days of the delivery.
 Said notice of loss or damage may be endorsed upon the receipt for the goods given
by the person taking delivery thereat.
The notice in writing need not be given if the state of the goods has at the time of
their receipt been the subject of joint survey or inspection.
In any event the carrier and the ship shall be discharged from all liability in respect
of loss or damage unless suit is brought within one year after delivery of the goods or the
date when the goods should have been delivered: Provided, That, if a notice of loss or
damage, either apparent or concealed, is not given as provided for in this section, that fact
shall not affect or prejudice, the right of the shipper to bring suit within one year after
delivery of the goods or the date when the goods should have been delivered.
In case of any actual or apprehended loss or damage, the carrier and the receiver
shall give all reasonable facilities to each other for inspecting and tallying the goods.

a). What is the time frame to file a Notice of Loss or Damage?

b). Will the plaintiff be barred from filing a case if he fails to file a Notice of Loss or
Damage?
c). What is the legal effect of non-filing of Notice of Loss or Damage?
d). What is the prescriptive period of filing a case under Carriage of Goods by Sea Act?

B. Problems:

1). Joseph Tan loaded his cargo consisting of 500 cartons of Face Masks while Jorge Uy
shipped 1000 cartons consisting of Testing Kits for Corona virus. They both loaded their
cargoes on board M/V Tin from Los Angeles, California consigned to them in Binondo,
Manila. As stipulated by the parties, the governing law was COGSA.

a). The cargoes of Jorge Uy arrived in Manila but 100 cartons where heavily damaged. Jorge
Uy did not file a notice of loss/damage, instead he filed a case against the carrying vessel 3
months after delivery. The common carrier alleged that the case is barred for failure of Jorge
Uy to file a notice of loss or damage despite the fact that the damage was evident from the
naked eye. Is the contention of the common carrier tenable under COGSA?

b). On the other hand, the shipment of Joseph Tan was nowhere to be found. After a thorough
search, it was found out that it was misdelivered to Joe Tan in Wuhan, China. After 3 years
from the arrival of M/V Tin, Joseph Tan filed a case against the common carrier. The
common carrier filed a Motion to Dismiss on the ground that the case has already
prescribed considering that it was filed 3 years already from the arrival of the vessel. Is the
contention of the common carrier under COGSA tenable?