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Accidents and damages in Maritime Commerce

Carriage of Good Sea Act

What are the accidents in maritime commerce? 1. Average;2. Arrival under distress; 3. Collision;4. Shipwreck;

What are AVERAGES? All extraordinary or accidental expenses which may be incurred during the voyage for the preservation of the vessel or cargo or both.

General Average;

Particular Average.

What are GENERAL AVERAGES? Damages or expenses deliberately caused in order to save the vessel, its cargo or both from real and known risk.

What are PARTICULAR AVERAGES? Damages or expenses caused to the vessel or cargo that did not inure to the common benefit, and borne by respective owners.

What are the requisites of General Average? 1. Common danger;2. Deliberate sacrifice; 3. Success;4. Proper procedure;

A loaded on S.S liverpool belonging to B , 300 cases of kerosene for consignment to Tacloban placing them on the deck and not in the hull of the vessel. While in the transit, a strong storm occurred and the captain as a means of avoiding the danger of shipwreck, jettisoned the entire shipment of kerosene belonging to A . Because of his precaution , the vessel was saved but only 50 cases of kerosene were recovered. Under what kind of average does the loss come? Who pays for it? Give reasons for your answer. (1958 Bar)

Answer: The loss of 250 cans of kerosene is a GENERAL AVERAGE as the sacrifice was deliberately made to save the vessel and the rest of the cargo.

The loss, being general average, is borne by all who benefited by the sacrifice; the owners of the cargo, including A and of the vessel.

What is an arrival under stress? It is an arrival of the vessel at the port not the destination, on account of either of the following:

What is an arrival under stress?

Lack of provision;

Well founded fear of seizure or privateer;

By reason of any accident of the sea disabling it to navigate.

Bar Question: Give three (3) causes justifying arrival under stress of a ship that is out on voyage to a definite destination. (1965 Bar)

What is COLLISION? It is the impact of two moving vessels.

What is ALLISION? It is the impact between a moving vessel and a stationary one.

What are the zones of time in the collision of vessel?First zone all time up to the moment when risk of collision begins.

Note: One vessel is a privileged vessel and the other is a vessel required to take action to avoid collision.

What are the zones of time in the collision of vessel?Second zone time between moment when risk of collision begins and moment it becomes practically a certainty.

What are the zones of time in the collision of vessel?Note: In this zone, the conduct of the vessels are primordial. It is in this zone that vessels must observe nautical rules, unless a departure therefrom becomes necessary to avoid imminent danger. The vessel which does not make such strict observance is liable.

What are the zones of time in the collision of vessel?

Third Zone time when collision is certain and up to the time of impact.

What is an error in extremis?

The sudden movement made by a faultless vessel during the third zone of collision with another vessel which is at fault under the second zone. Even if sudden movement is wrong, no responsibility will fall on the faultless vessel.

What are the rules governing liabilities of parties in case of collision? 1. One vessel at fault The ship owner of such vessel shall be liable for all resulting damages. ;

In a collision between M/T Manila, a tanker, and M/V Don Claro, an interisland vessel, an MV Don Claro sank and many of its passengers drowned and died. All its cargoes were lost. The collision occurred at nighttime but the sea was calm, the weather fair and visibility was good. Prior to the collision and while still 4 nautical miles apart M/V Don Claro already sighted M/T Manila on its radar screen. M/T Manila had no radar equipment. As for speed, M/V Don Claro was twice as fast as M/T Manila.

At the time of the collision, M/T Manila failed to follow rule 19 of the International Rules of the Road which requires 2 vessels meeting head on to change their course by eachh vessel steering to starboard (right) so that each would pass by the port side (left) of the other, M/T Manila signaled that it would turn to portside and steered accordingly, thus resulting in the collision. M/V Don Claros captain was off duty and was having a drink at the ships bar at the time of the collision.Who would you hold liable for the collision? (1991 Bar)

Answer: M/T Manila was negligent in the case at bar, and would therefore be liable for the consequences of the collision. It having failed to follow Rule 19 of the International Rules of the Road by steering in the portside, instead of to the starboard side as required by said rule.

What are the rules governing liabilities of parties in case of collision? 2. Both vessels are at fault Each vessel shall suffer their respective losses but as regards the owners of the cargoes, both vessels shall be jointly and severally liable.

Two vessels coming from opposite directions collided with each other due to fault imputable to both. What are the liabilities of the two vessels with respect to the damage caused to them and their cargoes?(1995 Bar)

Answer: Each vessel must bear its own damage. Both of them are at fault. (Art. 827, Code of Commerce)

What are the rules governing liabilities of parties in case of collision? 3. Vessel at fault not known Each vessel shall suffer its own losses and both shall be solidarily liable for loses or damages on the cargo. (Doctrine of Inscrutable Fault).

What are the rules governing liabilities of parties in case of collision? 4. Fortuitous event Each shall bear its own damage.

What are the rules governing liabilities of parties in case of collision? 5. Third vessel at fault The third vessel shall be liable for losses and damages sustained.

What is a SHIPWRECK?The loss of the vessel at sea as a consequence of its grounding, or running against an object in sea or on the coast. If the wreck was due to malice, negligence, or lack of skill of the captain, the owner of the vessel may demand indemnity from said captain.

Who shall bear the losses in shipwreck?GENERAL RULE : The loss of a ship and her cargo shall fall upon their respective owners. (Art. 840)

Who shall bear the losses in shipwreck?EXCEPTION: If the wreck was due to malice, negligence, or lack of skill of the captain, or because the vessel put to sea was insufficiently repaired and equipped, the ship agent or the shippers may demand indemnity from the captain for the damage caused to the vessel or to the cargo by the accident. (Art. 841)

It will only be applied in terms of loss or damage of goods transported to and from Philippine ports in foreign trade. It may also apply to domestic trade when there is a paramount clause in the contract.When will the CARRIAGE OF GOODS BY SEA ACT apply?

1. If the damage is apparent Notice must be immediately given. The notice may either be in writing or orally.When should notice be filed in case of damage to goods under the COGSA?

2. If the damage is not apparent Notice must be given within 3 days after delivery.When should notice be filed in case of damage to goods under the COGSA?

1. Delivery of the goods, in case of damage; or.

2. The date when the goods should have been delivered, in case of loss.When should suits for loss or damage of cargo be brought?

It applies only in case of loss or damage, and not to misdelivery or conversion of goods. (Ang v. American Steamship Agencies, Inc., G.R. No. L22491, Jan. 27, 2967)What cases are covered under the COGSA?

Also, the deterioration of goods due to delay in their transportation constitutes "loss" or "damage" within the meaning of Sec. 3(6) of COGSA. (Mitsui O.S.K. Lines Ltd. v. CA, G.R. No. 119571, Mar. 11, 1998)What cases are covered under the COGSA?