an account of violation of customs, police, health, and navigation laws and regulations;
4. Losses and damages caused by mutinies on board the vessel or by reason of faults committed by the crew in the service and defense of the same, if he does not prove that he made timely use of all his authority to prevent or avoid them;
5. Those caused by the misuse of the powers;
6. For those arising by reason of his going out of his course or taking a course which he should not have taken without sufficient cause, in the opinion of the officers of the vessel, at a meeting with the shippers or supercargoes who may be on board. No exceptions whatsoever shall exempt him from this obligation; 7. For those arising by reason of his
voluntarily entering a port other than that of his destination, outside of the cases or without the formalities referred to in Article 612; and
8. For those arising by reason of non‐ observance of the provisions contained in the regulations on situation of lights and manoeuvres for the purpose of preventing collisions (Art. 618).
Note: Ship owner/agent is not liable for the obligations contracted by the captain if the latter exceeds his powers and privileges inherent in his position of those which may have been conferred upon him by the former. However, if the amount claimed were used for the benefit of the vessel, the ship owner or ship agent is liable. Q: In what causes shall the captain be not liable for loss or injury to persons or cargo? A: 1. Force majeure
2. Obligations contracted for the vessel’s benefit, except when the captain expressly agrees to be liable.
Q: May the captain have himself substituted by another?
A: No, in the absence of consent from the ship
agent, and should he do so he shall be liable for all the acts of the substitute. (Art. 615)
Q: When may the captain and crew members rescind their contractual employment? A: In case of: 1. War 2. Change of destination 3. Outbreak of disease 4. New owner of vessel. (Art. 647) Q: Who is the shipowner of a vessel?
A: The person in possession, management,
control over the vessel, and the right to direct her navigation. While in their possession, the ship owners also receive freight earned and paid.
Q: Who is a ship agent?
A: The person entrusted with provisioning or
representing the vessel in the port in which it may be found. Hence, whether acting as agent of the owner of the vessel or as agent of the charterer, he will be considered as the ship agent and may be held liable as such, as long as he is the one that provisions or represents the vessel.
(Macondray & Co., Inc. v. Provident Insurance Corp, G.R. No. 154305, Dec. 9, 2004)
Q: What are the civil liabilities of ship owners and agents?
A:
1. Damages suffered by a 3rd person for tort committed by the captain;
2. Contracts entered for provisioning and repair of vessel;
3. Indemnities in favor of 3rd persons arising from the conduct of the captain from the care of goods; and
4. Damages in case of collision due to fault or negligence or want of skill of the captain. Q: What are the powers, functions, and liabilities of ship agents? A:
1. Indemnity for expenses incurred for ship’s benefit.
2. Discharge of captain and/or crew members. The following are the rules observed by the ship agent:
a. Captain and/or crew member’s contract not for a definite period or voyage:
i. Before vessel sets out to sea: Ship agent at his discretion may discharge the captain and members of the crew. Ship agent must pay captain and/or
crew members salaries earned according to their contracts, and without any indemnity whatsoever, unless there is an expressed agreement;
ii. During voyage: Captain and/or crew member shall receive salary until return to the port where contract was made. Article 637 of the Code of Commerce enumerates the just causes for discharge.
b. Where captain and members of the crew’s contracts with ship agent be for a definite period or voyage:
i. Captain and/or crew members may not be discharged until after the fulfillment of their contracts, except by reason of insubordination in serious matters, robbery, theft, habitual drunkenness, or damage caused to the vessel or to its cargo through malice or manifest or proven negligence. (Art. 605,
Code of Commerce)
ii. If the captain should be the vessel’s co‐owner, he may not be discharged unless ship agent returns his amount of interest therein. In the absence of agreement between the parties, interest shall be appraised by experts appointed in the manner established by civil procedure.
Q: What is the Doctrine of Limited Liability?
A: Also called the “no vessel, no liability
doctrine,” it provides that liability of ship owner is limited to ship owner’s interest over the vessel. Consequently, in case of loss, the ship owner’s liability is also extinguished. Limited liability likewise extends to ship’s appurtenances, equipment, freightage, and insurance proceeds. The ship owner’s or agent’s liability is merely co‐ extensive with his interest in the vessel, such that a total loss of the vessel results in the liability’s extinction. The vessel’s total destruction extinguishes maritime liens because there is no longer any res to which they can attach. (Monarch
Insurance v. CA, G.R. No. 92735, June 8, 2000)
Q: What is the rationale of this doctrine?
A: To offset against innumerable hazards and
perils in sea voyage and to encourage ship building and maritime commerce. By abandonment, the ship owner and ship agent exempt themselves from liability, thus avoiding the possibility of risking his whole fortune in the business (Real and hypothecary nature of
Maritime Law)
Q: What are the cases in which the doctrine of limited liability is allowed?
A:
1. Civil liability of the ship agent or shipowner for the indemnities in favor of third persons; (Art. 587)
2. Civil liability of the co‐owners of the vessel for the results of the acts of the captain; (Art. 590)
3. If the vessel and her cargo be totally lost, by reason of capture or shipwreck, all the rights shall be extinguished, both as regards the right of the crew to demand wages and the right of the ship agent to recover the advances made;
(Art. 643) or
4. Extinction of civil liability incurred by the shipowner or agent in cases of maritime collisions. (Art. 837)
Q: What are the exceptions to the doctrine of limited liability?
A:
1. Repairs and provisioning of the vessel before the loss of the vessel; (Art. 586)
2. Insurance proceeds. If the vessel is insured, the proceeds will go to the persons entitled to claim from the shipowner; (Vasquez v. CA, G.R. No. L‐
42926, Sept. 13, 1985)
3. Workmen’s Compensation cases (now Employees’ Compensation under the Labor Code); (Oching v. San Diego, G.R. No. 775, Dec. 17, 1946) 4. When the shipowner is guilty of fault or negligence; Note: But if the captain is the one who is guilty, doctrine may still be invoked, hence, abandonment is still an option.
5. Private carrier; or