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Duty of Ship Agent to Discharge the Captain and Members of the Crew
If the seamen contract is not for a definite period or voyage, he may discharge them at his
discretion. (Art. 603)
If for a definite period, he may not discharge them until after the fulfillment of their
contracts, except on the following grounds:
Insubordination in serious matters;
Robbery;
Theft;
Habitual drunkenness;
Damage caused to the vessel or to its cargo through malice or manifest or proven
negligence. (Art. 605)
It is universally recognized that the captain is primarily the representative of the owner;
and article 586 of the Code of Commerce expressly declares that both the owner of the
vessel and the naviero, or charterer, shall be civilly liable for the acts of the master.
In this connection, it may be noted that there is a discrepancy between the meaning
of naviero, in articles 586 of the Code of Commerce, where the word is used in
contradistinction to the term "owner of the vessel" ( propietario), and in article 587 where
it is used alone, and apparently in a sense broad enough to include the owner.
Fundamentally the word "naviero" must be understood to refer to the person undertaking
the voyage, who in one case may be the owner and in another the charterer.
The owner of the vessel is civilly liable for the acts of the captain; and he can only escape
from this civil liability by abandoning his property in the ship and any freight that he may
have earned on the voyage (arts. 587, 588, Code of Comm.).
Standard Oil Co. v. Castelo 42 Phil 256 October 18, 1921
2. Captains and Master of the Vessel
Captain - one who governs vessels that navigate the high seas or ships of large
dimensions and importance, although they may be engaged in coastwise trade
Master - one who commands smaller ships engaged exclusively in coastwise trade
captain and master have the same meaning
for maritime commerce
patron - bancas
Qualifications
Filipino citizen;
Legal capacity to contract;
Must have passed the required physical and mental examinations required for licensing
him as such. (Art. 609)
Triple Roles of the Captain
1. The general agent of the shipowner
2. The commander and technical director of the vessel
3. Government representative of the country under whose flag he navigates
a ship's captain must be accorded a reasonable measure of discretionary authority to
decide what the safety of the ship and of its crew and cargo specifically requires on a
stipulated ocean voyage.
is a basic principle of admiralty law that in navigating a merchantman, the master must
be left free to exercise his own best judgment. The requirements of safe navigation compel
us to reject any suggestion that the judgment and discretion of the captain of a vessel
may be confined within a straitjacket, even in this age of electronic communications.
(Inter-Orient Maritime Enterprises, Inc. v. NLRC, 235 SCRA 268,
August 11, 1994)
Duties of the Captain
1. To bring on board the proper certificate and documents and a copy of the Code of
Commerce;
2. To keep a Log Book, Accounting Book and Freight Book;
3. To examine the ship before the voyage;
4. To stay on board during the loading and unloading of the cargo;
5. To be on deck while leaving or entering the port;
6. To protest arrivals under stress and in case of shipwreck;
7. To follow instructions of and render an accounting to the ship agent;
8. To leave the vessel last in case of wreck;
9. To hold in custody properties left by deceased passengers and crew members;
10. To comply with the requirements of customs, health, etc. at the port of arrival;
11. To observe rules to avoid collision;
12. To demand a pilot while entering or leaving a port. (Art. 612)
No liability for the following:
Damages caused to the vessel or to the cargo by force majeure;
Obligations contracted for the repair, equipment, and provisioning of the vessel unless he
has expressly bound himself personally or has signed a bill of exchange or promissory note
in his name. (Art. 620)
Solidary Liabilities of the Ship Agent/Shipowner for Acts Done by the Captain
towards Passengers and Cargoes
1. Damages to vessel and to cargo due to lack of skill and negligence;
2. Thefts and robberies of the crew;
3. Losses and fines for violation of laws;
4. Damages due to mutinies;
5. Damages due to misuse of power;
6. For deviations;
7. For arrivals under stress;
8. Damages due to non-observance of marine regulations. (Art. 618)
3. Officers and Crew of the vessel
A person duly qualified, and licensed, to conduct a vessel into or out of ports, or in certain
waters.
The term generally connotes a person taken on board at a particular place for the purpose
of conducting a ship through a river, road or channel, or from a port.
Master pro hac vice for the time being in the command and navigation of the ship.
GENERAL RULE: On compulsory pilotage grounds, the Harbor Pilot is responsible for
damage to a vessel or to life or property due to his negligence.
EXCEPT:
1. Accident caused by force majeure or natural calamity provided the pilot exercised
prudence and extra diligence to prevent or minimize damages.
2. Countermand or overrule by the master of the vessel in which case the registered
owner of the vessel is liable. (Sec.11, Art.III PPA Admin Order 03-85)
vessel such that a total loss thereof results in its extinction. If the ship is totally lost, his
liability is extinguished. If the ship or part thereof still exists, he can escape liability by
abandoning the vessel, its appurtenances and its freight.
*hypothecary - An action by a creditor to whom property has been hypothecated
to have it sold to pay the debt.
*hypothecate (transitive verb) : to pledge as security without delivery of title or
possession.
The real and hypothecary nature of the liability of the shipowner or agent
Origin:
prevailing conditions of the maritime trade and sea voyages during medieval
ages
Purpose:
To offset against adverse conditions
To encourage shipbuilding and maritime commerce
When is LLR applicable?
The Code of Commerce sanctions (as in allows) the application of the doctrine in the
following cases:
1. Civil liability for indemnities in favor of 3d persons which arise from the conduct of the
captain in the care of the goods which the vessel carried (Art. 587, Code of Commerce);
2. Civil liability arising from collisions (Art. 837, Code of Commerce);
3. Unpaid wages of the captain and the crew if the vessel and its cargo are totally lost by
reason of capture or shipwreck. (Art. 643, Code of Commerce).
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CASE:
Aboitiz Shipping Corporation V. General Accident Fire and Life Assurance
Corporation, Ltd.
217 SCRA 359, January 21, 1993
The real and hypothecary nature of maritime law simply means that the liability of the carrier in connection with
losses related to maritime contracts is confined to the vessel, which is hypothecated for such obligations or which
stands as guaranty for their settlement.
Issue: Whether or not the Limited Liability Rule arising out of the real and hypothecary nature of maritime law should
apply in this case