CHAPTER 10 2.

REAL AND HYPOTHECARY NATURE

1. MARITIME LAW DEFINITION Hypothecation - occurs when an asset is pledged as

collateral to secure loan.
Maritime Law - is the system of laws which
"particularly relates to the affairs and business Evidence of "real" nature
of the sea, to ships, their crews and navigation
1. Limit of Liability - the limitation of the
and to marine conveyance of persons and
liability of the agents to the actual value of the
property.
vessel and the freight money
- a corpus of rules, concepts,
2. Maritime Lien - the right to retain the
and legal practices governing certain centrally
cargo and the embargo and detention of vessel
important concerns of the business of carrying
even in cases where the ordinary civil law would
goods and passengers by water.
not allow more than a personal action against
- that system of law which the debtor or person liable.
particularly relates to marine commerce and
Treatise of Madriaga on maritime law
navigation, to business transacted at sea or
relating to navigation, to ships and shipping, to 3. MARITIME LIEN
seamen, to the transportation of persons and
property by sea and to marine affairs generally. - Maritime lien is akin to a mortgage lien
in that in spite of the transfer of ownership, the
Special Laws - lien is not extinguished.

1. Book III of the Code of Commerce - Maritime lien is inseparable from the
entitled Maritime Commerce vessel and until discharged , it follows the essel.

2. Act No. 2616 "Salvage Law" - Maritime lien is in nature and character
a proceeding quasi in rem.
3. Commonwealth Act No. 65 "Carriage
of Goods by Sea Act" 4. LIMITED LIABILITY RULE: NO VESSEL,
NO LIABILITY
4. P.D. 1521 "Ship Mortgage Decree of
1978 Limited Liability Rule - mean that the liability of
a shipowner for damages in case of loss is
5. Other special law relating to Maritime
limited only to the value of the vessel. If the
Commerce
ship is totally lost, his liability is extinguished.
Law that Governs
No vessel, no liability - The ship owner's or
- New Civil Code agent's liability is merely co-extensive with his
interest in the vessel such that a total loss
- suppletorily, Code of Commerce thereof results in its extinction.

Treaties and Conventions - no longer any res to attach

- United Nations Convention on the Law 4.02 Statutory Provisions

of the Sea (UNCLOS)
Art 587 (- liability to third persons ) and 590 -
universal principle of limited liability in all cases
 - ship agent also be civilly liable in favor the concurring negligence of the shipowner and
of 3rd person from the conduct of the vessel, the captain
but may exempt himself by abandoning the
vessel. 2. where the vessel is insured

Art. 643 and 837 - collision cases 3. in workmen's compensation claims

Art 643. -If the vessel and her cargo should be 4. expenses for repairs and provisioning of the
totally lost, by reason of capture or wreck, all vessel completed before its loss
rights shall be extinguished, both (crew to
Burden of proof
demand wages and ship agent to recover
advances) -The carrier or ship owner has the
burden of showing that it exercised
Art 837 - The civil liability incurred by the
extraordinary diligence in the transport of the
shipowners in the cases prescribed in this
goods it had on board in order to invoke the
section, shall be understood as limited to the
limited liability doctrine.
value of the vessel with all her appurtenances
and freight earned during the voyage. Insurance Claim

Art 837, 587 and 590 covers only: - the limited liability rule applies to the
paying insurer when it exercises its right of
1. liability to third persons
subrogation against the ship owner.
2. acts of the captain
Workmen's Compensation
3. collisions
- a liability created by the statute to
Art 590. - if the vessel is co-owned, the limited compensate employees and laborers in case of
liability to third persons shall be satisfied by the injury received while in the performance of their
co-owners in proportion to their contribution to work has nothing to do with the provision of the
the common fund for the results of the acts of Code of Commerce.
the captain.
Overseas Worker's Claim
Each co-owner may exempt himself from this
- POEA-SEC (POEA Standard
liability by abandonment, before a notary, of
Employment Contract)
that part of the vessel belonging to him.
4.09 Abandonment
4.04 Shipowner entitled to limited liability
rule (LLR) - is an indispensable requirement before
the shipowner or ship agent can enjoy the
- the charterer cannot invoke the LLR
benefits of the limited liability principle.
against the shipowner
4.10 Procedure for Enforcement
- not only in the breach of contract by in
tortuous negligence Limitation Action under Rule 8 of Part IV of the
Rules of Procedure for Admiralty Cases (A.M.
4.05 Exceptions to Limited Liability Rule
No. 19-08-14-SC) - special proceeding for
1. where the injury or death to a passenger is enforcement of the limited liability
due either to the fault of the shipowner, or to
 - rights of a vessel owner or agent 2. Subject Matter Test - subject matter of the
under the Limited Liability Rule are akin to those contract
of the rights of shareholders to limited liability
under our corporation law. Admiralty jurisdiction of the court refers to the
jurisdiction to hear and determine any of the ff
5. PROTEST maritime claims:

Protest - is the written statement by the master (haba nito ayoko itype)
of the vessel or any authorized officer, attested
by proper officer or a notary, to the effect that
damages has been suffered by the ship.

Protest is required under the following:

1. When the vessel makes an arrival under

stress.

2. When the vessel is shipwrecked

3. Where the vessel has gone through a

hurricane or the captain believes that the cargo
has suffered damages or averages.

4. Maritime collisions - protest should be made

within 24 hours after a collision

6. ADMIRALTY JURISDICTION

Section 19(3) of B.P. Blg. 129 (as amended by

R.A. 7691) otherwise known as the "Judiciary
Reorganization Act of 1980"

- took effect on August 14, 1981

- provides that RTC has jurisdiction:

"In all actions in admiralty and maritime

jurisdiction where the demand or claims exceeds
300,000 or in Metro Manila where the demand
or claims exceeds 400,000

- MeTC, MTC or MCTC if the amiunt of

demand or claim is less than the jurisdictional
amount of RTC.

2 Test to determine if the case comes within the

admiralty and maritime jurisdiction of the court

1. Locational Test - place where the contract is

made or executed.
CHAPTER 11 5. A nuclear ship is a ship provided with a
nuclear power plant.
1. VESSELS DEFINTION
6. "New ship" means a ship the keel of which is
Under PD 474 - "any barge, lighter, bulk laid or which is at a similar stage of construction
carrier, passenger ship freighter, tanker, on or after the date of coming into force of the
container ship, fishing boats, or other artificial SOLAS 1974.
contrivance utilizing any source of motive
power, designed, used or capable of being used 7. Existing ship means a hip which is not new
as means of transportation operating either as ship
common contract carrier, including fishing
vessels covered under PD 43, except 2. CONSTRUCTION, EQUIPMENT AND
MANNING
i. those owned and/or operated by the
AFP and by foreign governments for military Construction, Equipment and Manning of Vessels
purposes are subject to the rules issued by the Maritime
Industry Authority and Coast Guard.
ii. bancas, sailboats and other
waterborne contrivance of less than three gross Under the Convention
tons capacity and not motorized.
-gross tonnage - measure of the overall size of
Under Domestic Shipping Development the ship
Act of 2004 - provides that ship or vessel may
-net tonnage - measure of the useful capacity of
interchangeably and shall mean any kind, class
the ship
or type of craft or artificial contrivance capable
of floating in water. 3. VESSEL AS PERSONAL PROPERTY

1.01. Other Vessels Under Art 585 For all purposes of law not
modified or restricted by the provisions of this
MARINA (Maritime Industry Authority)and other
Code, vessels shall continue to be considered as
gov't agencies also regulate small vessels
personal property.
1.02 Kinds of Vessels
4. ACQUISITION
SOLAS (Safety Of Life At Sea) 1974 provides for
Vessels may be acquired or transferred by any
the ff classifications of ships
means recognized by law.
1. A passenger ship is a ship which carries more
1. Sale
than 12 passengers.
2. Donation
2. A cargo ship is any ship which is not a
passenger ship. 3. Prescription

3. A tanker is a cargo ship constructed or Under Art 712, NCC

adapted for the carriage in bulk of liquid cargoes
of an inflammable nature 1. by law,

4. A fishing vessel is a vessel used for catching 2. by donation

fish, whales, seals, walrus or other living
3. by estate and intestate succession
resources of the sea
4. in consequence of certain contract, by
tradition
manifest
5. by occupation
cabotage
6. by means of prescription

7. by intellectual creation

Theory of Mode and Title - ownership is

acquired by another only if mode and title
concurs.

Mode -is the specific cause which gives

rise to them. This is a proximate cause of the
acquisition

Title - is the juridical justification for the

acquisition or a transfer of ownership or other
real right.

-it is required that the buyer shall within 15 days

from the approval of the MARINA secure a new
Certificate of Philippine Registry and Certificate
of Ownership

- Art 573 of the CC, transfer of vessels should be

in writing and must be recorded in the
appropriate registry.

4.01 Prescription

Art 573 of the CC

Two types of acquisitive prescription

1. Ordinary - requires continuous possession in

good faith for three years

2. Extraordinary- if in bad faith, continuous

possession for 10 years shall be necessary.

Requisites of ordinary prescription

1. The person who claims ownership must be in

continuous possession

2. Possession must be for a periods of three

years

3. Possession must be in good faith