1.

real and hypothecary nature of the shipowner, or to the concurring

maritime law; limited liability rule negligence of the shipowner and the
2. charter parties captain; 
3. averages
4. bill of lading 2. where the vessel is insured; and
5. demurrage
6. collision 3. in workmen's compensation claims. 
7. arrival under stress
8. persons engaged in maritime LIENS ON THE VESSEL
commerce
The vessel’s total destruction extinguishes
maritime liens because there is no longer
1. Doctrine of Limited any res to which they can attach.
Liability
- (Monarch Insurance v. CA, G.R. No.
Also called the “no vessel, no liability 92735, June 8, 2000)
doctrine,”
Exceptions:
it provides that liability of ship owner is
limited to ship owner’s interest over the 1. Repairs and provisioning of the vessel
vessel. before the loss of the vessel; (Art. 586)

Consequently, in case of loss, the ship 2. Insurance proceeds. If the vessel is

owner’s liability is also extinguished. insured, the proceeds will go to the
persons entitled to claim from the
Limited liability likewise extends to shipowner; (Vasquez v. CA, G.R. No. L-
42926, Sept. 13, 1985)
1. ship’s appurtenances,
3. Workmen’s Compensation cases (now
2. equipment,
Employees’ Compensation under the Labor
3. freightage, and
Code); (Oching v. San Diego, G.R. No.
4. insurance proceeds.
775, Dec. 17, 1946)
The ship owner’s or agent’s liability is 4. When the shipowner is guilty of fault or
merely coextensive with his interest in the negligence; Note: But if the captain is the
vessel, such that a total loss of the vessel one who is guilty, doctrine may still be
results in the liability’s extinction invoked, hence, abandonment is still an
option.
REQUISITES FOR THE LIMITED
LIABILITY RULE 5. Private carrier; or

1. No Negligence 6. Voyage is not maritime in character

2. Abandonment of the Vessel
his liability is confined to that which
he is entitled as of right to abandon-"
1. the vessel
2. with all her equipments and
3. the freight it may have earned during
the voyage.
the benefit of limited liability therein
provided for, applies in all cases
wherein the shipowner or agent may
properly be held liable for the
negligent or illicit acts of the captain.  indemnification due to the captain of the
"No vessel, no liability," expresses in a
nutshell the limited liability rule.
EXCEPTION IN THE LIMITED
LIABILITY RULE
1. Where the injury or death to a
passenger is due either to the fault of
TEODORO R. YANGCO,
ETC., petitioner,
vs.MANUEL LASERNA, ET AL
1. pilot, tonnate, and port dues and other
similar charges,
2. the wages of the crew earned during
the last voyage as provided in article 646
of the Code of Commerce,
3. salvage dues under article 842, the
vessel in case his contract is terminated
on account of the voluntary sale of the
ship and the insolvency of the owner as
provided in article 608,
and all other liabilities arising from
collisions under articles 837 and 838."
CHARTER PARTIES

What is a Charter?
A charter is an agreement between two or
more groups known as charter parties,
regarding the leasing of a vessel for a
fixed set of conditions. The terms and
conditions stipulated in the charter are
binding on all the parties in the agreement
and covers a wide variety of clauses and
possible scenarios that may arise. It is
considered to be an official document in
legal aspects and is required by Admiralty
Law to be drawn up in case of any form of
vessel hiring or leasing
Voyage Charter
Simply put, a voyage charter involves a
charterer hiring a vessel for the purpose
of a single voyage, in which the route and
ports have been pre-determined. The
responsibility of duty and other payments
along with recruitment is handled
completely by the shipowner, while the
cargo is the sole responsibility of the
charterer.
Time Charter
Briefly put, a time charter involves leasing
a vessel for a fixed period, on a per-day
rate, where the charterer is free to use
the vessel. The owner only looks after
maintenance-related cost.
AVERAGES
AVERAGES MEANING MARINE LOSS
IN MARINE ADVENTURE
General averages refer to “all the
damages and expenses which are
deliberately caused in order to save the
vessel, its cargo, or both at the same
time, from a real and known risk.”[3]
Shared by all of the owners of the cargo
The cause of loss of General Average
cannot be insured
The Code classifies averages into simple
or particular and general or gross.
PARTICULAR AVERAGE
Partial loss accidentally insured by sea
perils
Purely accidental
Can be insured
Borne by the owner
In contrast to general averages, simple or
particular averages refer to “all expenses
and damages caused to the vessel or
cargo which have not inured to the
common benefit,”[4] 
which are, therefore, borne only by the
owner of the property giving rise to same.
[5] 
They are not for the common benefit, and
are therefore not borne by the owners of
the articles saved. The distinction is better
appreciated by looking into the requisites
of general average.
REQUISITES
1.  there must be a common danger.
2. That for the common safety part of the
vessel or of the cargo or both is sacrificed
deliberately.
3. that from the expenses or damages
caused follows the successful saving of the
vessel and cargo
4. that the expenses or damages should
have been incurred or inflicted after taking
proper legal steps and authority
BILL OF LADING
TITLE OF THE GOODS
A bill of lading is a contract issued by a
carrier (shipping line), or by the agent, to
the owner of the goods shipped, to
acknowledge receipt of cargo for
shipment. The document basically states
what goods are being shipped, as well as
where the shipment is coming from and
heading to.
DEMURRAGE
STORAGE COST AT THE PORT

In case the charterer exceeds the laytime
laid out in the contract, he is obliged to
pay a penalty known as demurrage. This
covers the extra costs incurred by the
shipowner owing to the delay by the
charterer.
On the other hand, if the ship is able to
complete the loading and unloading
operations before the stipulated time, the
charterer can claim payment of a despatch
from the owner. This is often seen as an
incentive for charterers to complete the
port operations as soon as possible.
Jettison is an intentional act of throwing
overboard
1. a ship parts of shipment or
2. dropping out some body part of a
vessel
in order to save the rest of the shipment
or the whole vessel from complete
damage.
Whenever jettison occurs, the owner of
the vessel is entitled to General Average.
It implies that all the stakeholders are to
bear equal losses in case of a damage to
any shipment regardless of whose goods
they are.
Order of Jettison Art. 815 ( Code of
Commerce in Maritime Law
ARTICLE 815
The captain shall supervise the jettison,
and shall order the goods cast overboard
in the following order:
1. Those which are on deck, beginning
with those which embarrass the handling
of the vessel or damage her, preferring, if
possible, the heaviest ones and those of
least utility and value.
2. Those in the hold, always beginning
with those of the greatest weight and
smallest value, to the amount and number
absolutely indispensable
ARTICLE 816. In order that the
goods jettisoned may be included in
the gross average and the owners
thereof be entitled to indemnity, it
shall be necessary in so far as the
cargo is concerned that their
existence on board be proven by
means of the bill of lading; and with
regard to those belonging to the
vessel, by means of the inventory
made up before the departure, in
accordance with the first paragraph
of Article 612. ( ARTICLE 612. The
following obligations are
inherent in the office of
captain: )
Arrival Under Stress Arts. 819 - 821
ARTICLE 819.
If the captain during the navigation
1. should believe that the vessel can not
continue the voyage to the port of
destination on account of the :
a) lack of provisions,
b) well founded fear of seizure,
c) privateers or pirates, or
d) by reason of any accident of the
sea disabling her to navigate,
1. he shall assemble the officers and
2. shall call the persons interested in the
cargo who may be present, and
3. who may attend the meeting
without the right to vote; and if,
after examining the circumstances of
the case, the reasons should be
considered well founded,
 it shall be decided to make the
nearest and most convenient
port drafting and entering in
the log book the proper
minutes, which shall be signed
by all.
The captain shall have the deciding
vote and
 the persons interested in the cargo
may make the objections and
protests they may deem proper,
 which shall be entered in the
minutes in order that they may
make use thereof in the manner
they may consider advisable.
ARTICLE 820. The arrival under stress
shall not be considered legal in the
following cases:
1. If the lack of provisions should arise
from the failure to take the necessary
provisions for the voyage, according to
usage and custom, or if they should have
been rendered useless or lost through bad
stowage or negligence in their care.
2. If the risk of enemies, privateers, or
pirates should not have been well known,
manifest, and based on positive and
justifiable facts.
3. If the injury to the vessel should have
been caused by reason of her not being
repaired, rigged, equipped, and arranged
in a convenient manner for the voyage, or
by reason of some erroneous order of the
captain.
4. Whenever malice, negligence, want of
foresight, or lack of skill on the part of the
captain is the reason for the act causing
the damage.
ARTICLE 821.
The expenses caused by the arrival
under stress
 shall always be for the account of
the shipowner or agent,
 but the latter shall not be liable
for the damage which may be
caused the shippers by reason
of the arrival under stress,
provided the latter is
legitimate.
Otherwise, the shipowner or agent and
the captain shall be jointly liable.
Zones of Collision
Generally speaking, in collisions between
vessels there exist three divisions of time,
or zones;
The first division
covers all the time up to the moment
when the risk of collision may be said to
have begun.
Within this zone no rule is applicable
because none is necessary.
Each vessel is free to direct its course as it
deems best without reference to the
movements of the other vessel.
The second division
covers the time between the moment
when the risk of collision begins
and the moment when it has become a
practical certainty.
The third division
covers the time between the moment
when collision has become a practical
certainty and the moment of actual
contact.
1. In the first zone no rules apply.
2. In the second the burden is on the
vessel required to keep away and
avoid the danger.
3. The third zone covers the period in
which errors in extremis occur; and
the rule is that the vessel which has
forced the privileged vessel into
danger is responsible even if the
privileged vessel has committed an
error within that zone.
ARTICLE 835. The action for the recovery
of losses and damages arising from
collisions can not be admitted if a protest
or declaration is not presented within
twenty-four hours to the competent
authority of the point where the
collision took place, or that of the first
port of arrival of the vessel, if in
Spain, * and to the consul of Spain * if it
should have occurred in a foreign country.
ARTICLE 836. In so far as the damages
caused to persons or to the cargo are
concerned, the absence of a protest
can not prejudice the persons interested
who were not on board or were not in a
condition to make known their wishes.
ARTICLE 838. When the value of the
vessel and her appurtenances should not
be sufficient to cover all the liabilities, the
indemnity due by reason of the death or
injury of persons shall have preference.