Shipwreck

Art. 841
If the wreck or stranding should arise through the malice, negligence, or lack of skill of the captain,
or because the vessel put to sea insufficiently repaired and prepared, the owner of the freighters
may demand indemnity of the captain for the damages caused to the vessel or cargo by the
accident, in accordance with the provisions contained in Arts. 610, 612, 614, and 621.

 It is the loss of the vessel at sea as a result of her grounding or running against an object at
sea or on the coast.
 It occurs when the vessel sustains injuries due to a marine peril rendering her incapable of
navigation.
 The rules on collision and allision shall also apply in shipwreck if both are at fault, jointly
liable.

Losses due to shipwreck

 The losses and deterioration suffered by a vessel and her cargo by reason of shipwreck or
stranding shall be individually for the account of the owners, the part which may be saved
belonging to them in the same proportion (Art. 840).

Maritime protest

 A sworn statement made within 24 hours after a collision in which the circumstances
thereof are declared or made known before a competent authority at the point of accident
or the first port of arrival if in the Philippines or the Philippine consul in a foreign country.
 It is filed to recover damages in accidents.
 It is a condition precedent or prerequisite to the recovery of damages arising from collisions
and other maritime accidents.

Maritime protest rule is not absolute

Art. 836
Insofar as the damages caused to persons or to the cargo are concerned, the absence of a protest
cannot prejudice the persons interested who were not on board or were not in a condition to make
known their wishes.

 Maritime protest is not necessary when the interested person is not on board the vessel.

Art. 833
A vessel shall be presumed as lost thru a collision which, upon being run into, sinks immediately,
and also any vessel which is obliged to make a port to repair the damages caused by the collision
should be lost during the voyage, or should be obliged to be stranded in order to be saved.

 Maritime protest need not be filed when made on collision time.

Application of maritime protest

 It is not applicable in arrival under stress

 It only applies to collision/allision and shipwreck

NHA v. Court of Appeals

 Agreement for vessel + barge = charter party

 Knowing the kind of charter party will determine the liability of charterer.

Liability of charterer during collision

 Depends on the kind of charter party.

 Affreightment – charterer is not liable.
 Bareboat – charter is liable.

Caltex Philippines, Inc. v. Sulpicio Lines, Inc.

 If the charter is a contract of affreightment, which leaves the general owner in possession of
the ship as owner for the voyage, the rights and the responsibilities of ownership rest on the
owner. The charterer is free from liability to third persons in respect of the ship.
 Under a demise or bareboat charter, the charterer mans the vessel with his own people and
becomes, in effect, the owner for the voyage or service stipulated, subject to liability for
damages caused by negligence.
 Vector is a common carrier. The charter party did not convert it into a private carrier.

Litonjua Shipping Company v. NSB

 It is well settled that in a demise or bareboat charter, the charterer is treated as the owner
pro hac vice of the vessel, the charterer assuming in large measure the customary rights and
liabilities of the shipowner in relation to third persons who have dealt with him or with the
vessel.
 In such case, the master of the vessel is the agent of the charterer and not the shipowner.
 The charterer or owner pro hac vice, and not the general owner of the vessel is held liable
for expenses of the voyage, including the wages of the seamen.
Cebu Salvage Corp. v. Philippines Home Assurance Corp.

 The carrier that enters into a contract of carriage is liable to the charterer or shipper even if
it does not own the vessel it chooses.
 A voyage charter is simply a contract of affreightment where the master and crew remain in
the employ of the shipowner. Under a voyage charter, the shipowner retains the possession,
command, and navigation of the ship, the charterer or freighter merely having use of the
space in the vessel in return for his payment of freight.
 An owner who retains possession of the ship remains liable as a carrier and must answer
for loss or non-delivery of the goods received for transportation.