AVERAGE

An extraordinary or accidental
expense
incurred
during
the
voyage in order to preserve the
cargo, vessel or both, and all
damages or deterioration suffered
by the vessel from departure to the
port of destination, and to the
cargo from the port of loading to
the port of consignment. (Art. 806)
The person whose property has
been saved must contribute to
reimburse the damage caused or
expense incurred if the situation
constitutes general average.
Classes:
1. Particular or Simple Average
2. Gross or General Average
Where both vessel and cargo are
saved, it is general average; where
only the vessel or only the cargo is
saved, it is particular average.
Expenses incurred to refloat a
vessel, which accidentally ran
aground, in order to continue its
voyage, do not constitute general
average. Not only is there absence
of a marine peril, common safety
factor, and deliberateness. It is the
safety of the property, and not the
voyage, which constitutes the true
foundation of general average. (A.
Magsaysay, Inc. vs. Agan, G.R.No.
L-6393, Jan. 31, 1955)
PARTICULAR
GROSS OR
OR SIMPLE
GENERAL
Definition
Damages
or Damages or
expenses
expenses
caused to the deliberately
vessel
or caused
in
cargo that did order to save
not inure to the
vessel,
the common its cargo or
benefit,
and both
from
borne
by real
and
respective
known
risk.
owners. (Art. (Art. 811)
809)
Requisites
1. common
danger;
2. deliberate
sacrifice;
3. success;
4. proper
formalities
and legal
steps.

Liability
The owner of All
the
the
goods persons
which
gave having
an
rise to the interest
in
expense
or the
vessel
suffered
the and
the
damage shall cargo therein
bear
this at the time of
average. (Art. the
810)
occurrence of
the average
shall
contribute to
satisfy
this
average.
(Art. 812)

The
insurers
(Art.859) and
lenders
on
bottomry and
respondentia
shall likewise
contribute.
(Art.732).
Number of interests
involved
Only
one Several
interest
interests
involved
involved
Share in the damage or
expense
100% share
In proportion
to the value
of
the
owners
property
saved
Right to recover
No
There
may
reimbursemen be
t
reimburseme
nt
Kinds (not exclusive)
Art. 809
Art. 811
Procedure for recovery
1. Assembly
and
deliberation
2. Resolution of
the captain
3. Entry of the
resolution in
the logbook
4. Detailed
minutes
5. Delivery
of
the minutes
to
the
maritime

judicial
authority of
the first port,
within
24
hours
from
arrival,
6. Ratification
by
captain
under oath.
(Arts.
813814)
GOODS
NOT
COVERED
BY
GENERAL AVERAGE EVEN IF
SACRIFICED
1. Goods carried on deck.
(ART.855)
2. Goods not recorded in the
books or records of the
vessel. (ART.855 (2))
3. Fuel for the vessel if there is
more than sufficient fuel for
the voyage. (Rule IX, YorkAntwerp Rule)
Jettison
Act of throwing cargo overboard
in order to lighten the vessel.
Order of goods to be cast
overboard:
1. Those which are on the deck,
preferring the heaviest one
with the least utility and
value;
2. Those which are below the
upper deck, beginning with
the one with greatest weight
and smallest value.
(Art.
815)
Jettisoned goods are not res
nullius nor deemed abandoned
within the meaning of civil law so
as to be the object of occupation
by
salvage.
(Pandect
of
Commercial
Law
and
Jurisprudence, Justice Jose Vitug,
1997 ed.)
In order that the jettisoned

goods may be included in the gross

or general average, the existence
of the cargo on board should be
proven by means of the bill of
lading. (Art. 816)

1.

2.

3.

York-Antwerp (Y-A) Rules on

Determining
Liability
for
Averages With Regard To Deck
Cargo
Deck cargo is allowed only in
domestic/coastwise/inter-island
shipping, and is prohibited in
international/overseas/foreign
shipping.
If deck cargo is loaded with the
consent of the shipper on overseas
trade, it must always contribute to
general average, but should the
same be jettisoned, it would not be
entitled to reimbursement because
there is violation of the Y-A Rules.
If deck cargo is loaded with the
consent
of
the
shipper
on
coastwise shipping, it must always
contribute to general average and
if jettisoned would be entitled to
reimbursement.
Reason: In domestic shipping,
voyages are usually short and the
seas are generally not rough. In
overseas shipping, the vessel is
exposed for many days to perils of
the sea.
DOMESTIC

INTERNATIO
NAL
Deck cargo is Deck cargo is
allowed
not allowed
With shippers consent
General
Particular
average
average
Without shippers consent
Captain is
Captain is
liable
liable