WARSAW CONVENTION
Warsaw Convention – an agreement among sovereign nations for two purposes:
1) To have uniform documents in connection with international air transportation.
2) To fix the liabilities of international air carriers.
Who are the parties?
▪ The signatories are referred to as HIGH CONTRACTING PARTIES.
▪ The Philippines was not an original party because at the time, it was not yet a state and it had no
aircraft. Ph was a party by accession to the US.
When do you say that a transportation is international? Dalawa kasi ang ibig sabihin ng international air
transportation before (dati kasi syempre luma na yung WC):
1) port of origin is in one country – port of destination is in another country. Example: Manila (PH) – Tokyo
(JPN);
2) port of origin is in one country – port of destination is in the same country but there is an agreed stopping
place in another country. Kaya dapat kasama sa itinerary na may stop-over in another country.
Example: LA (US) – Tokyo (Japan) – Guam (US)
One of the purposes of WC is to have uniform documents in connection with international air transportation.
Question: What documents are made uniform by the WC? > There are 3 uniform documents:
1) passenger ticket, issued by the carrier;
2) baggage check, previously known as baggage ticket; and
3) air waybill, this is a bill of lading.
The other purpose of Warsaw convention is to fix the liabilities of international air carriers. Question: Why is there
a need to fix the liability? > Because every country has its own rules about assessing damages.
Fixed liabilities of the carrier:
▪ In case of death of a passenger – Flat rate of 100,000 US dollars. No more negotiation.
▪ In case of physical injuries of a passenger – Maximum award is 100,000 US dollars, depending on the
severity of injury.
▪ In case of loss of checked in articles – Maximum indemnity is 1000 US dollars per kilogram. The value
of the article lost, however, must be proved. So kung anong value lang mapprove mo, yun lang ang
iaaward sayo but it will not exceed the maximum limit of $1000 per kilogram.
▪ For hand-carried articles – the maximum indemnity is at the rate of 1000 US dollars. NOT per kilogram.
LAW ON ADMIRALTY
Qualifications of a vessel: (Take note that not everything that floats is a vessel.)
1) It must not be a mere accessory to another watercraft.
2) It must be registered with the Maritime Industry Authority (MARINA).
3) It must be used to transport goods or passengers or both.
4) It must be sea-going.
Hypothecary or limited liability rule
▪ In order to encourage ownership of vessels to promote national economy, the liability of a ship owner
shall be limited to the value of the vessel, earned freightage, and insurance, if any, over the vessel.
Freightage – eto yung pinagkakakitaan ng barko
Who may own a vessel? > if kaya mo bumili mag-isa then bumili ka. If not, you may form a partnership or corporation
and that partnership or corporation could own a vessel. So kahit sino pwede mag-own.
Per the Code of Commerce, there is a presumption that when a vessel is owned by more than one person, there is
partnership among the co-owners. Presumption is disputable, not conclusive.
Who are the participants in admiralty?
▪ Persons working in a boarded vessel and those involved in the navigation: crew
▪ Persons involved in the housekeeping of the vessel: compliments (incl. cooks, waiters, chambermaids,
etc.)
Who are the members of the Crew of a Vessel:
1) Captain
Is there a difference between a captain and a master? > Legally, yes.
▪ The title captain is used to refer to the commanding officer of a ship that goes abroad. Pang
international shipping sya.
▪ The title master is used to refer to the commanding officer of a ship that is engaged in local/inter-
island travel. Pang domestic, or inter-island, or post wide shipping only.
A ship captain has three roles:
a. Represent the owner of the vessel
b. Be the technical director of the vessel
c. Represent the country where the vessel is registered (a function which a master does not perform)
2) Mates (1st, 2nd, 3rd etc.)
3) Engineers.
What are the contracts in Admiralty?
A. Charter party
B. Loan on Bottomry
C. Loan on Respondentia
D. Marine Insurance
A. Charter Party - A contract of lease over a vessel.
Kinds:
1) Bareboat charter a.k.a demise – where the lessor provides only the vessel, without crew, stores
(things you eat), provisions (water and fuel).
2) Time charter – a lease for an agreed period where the lessor provides the vessel with the crew,
stores, and provisions.
3) Voyage charter – a lease of a vessel for a voyage or series of voyages, where the lessor
provides the vessel with the crew, stores, and provisions.
According to the Supreme Court, the true charter party is the bareboat charter. The time and voyage charter
are merely contracts of affreightment, which is a contract of carriage.
Ship Agent: Corporation representing the owner in every port where the vessel may make a call or stop. The ship
agent is in charge of provisioning the vessel.
What will be the liability of a ship agent for procurement of provisions?
▪ A ship agent is solidarily liable with the ship owner for contracts entered into for provisions of the vessel.
This liability is different from that of a mere agent, who is not liable if he discloses his principal and acts
within the authority given him.
Husbanding Agent: Agent in charge of freightage and settlement of averages
Supercargoes: representatives of owners of cargoes. They sell cargo for the owner. Generally, they are only able to use
profits to buy goods. If they have a special power of attorney, they may use capital to buy goods.
B. Loan on Bottomry: Loan taken by the ship-owner secured by the vessel. The condition of the loan is that if
the vessel sinks, the creditor loses the right to collect or the obligation to pay is extinguished.
Take note: The loan in bottomry is only to the extent of the value of the vessel. Any amount of loan more than
the value of the vessel is not a loan in bottomry, but an ordinary loan. The amount in excess of the value of the
vessel is considered an ordinary loan.
Example: the value of my vessel is 400 Million. I got a loan from you worth 400 million. Kung lulubog yung barko
na ginawa kong collateral for my loan of 400 million, then wala ng right si creditor magcollect. Kapag naman
kunwari nagloan ako ng 450 million pero yung value ng vessel ko is only 400 million, yung 50 million is not a
loan in bottomry but an ordinary loan. Pag lumubog yung barko, yung 400 million hindi na need bayaran, pero
yung 50 million, being an ordinary loan, must still be paid.
C. Loan on Respondentia: Loan taken by the cargo owner and secured by the cargo. The condition of the loan
is that if the cargo would be lost during the voyage, the creditor loses the right to collect or the obligation to pay
is extinguished. The loan is only to the extent of the value of the cargo. The amount in excess of the value of
the cargo is considered an ordinary loan.
D. Marine Insurance: Contract of a insurance over the vessel, or freightage, or cargoes, or expected profits from
cargo against perils of the sea.
Accidents in Admiralty:
1) COLLISION – the impact of two or more moving vessels
▪ As opposed to Allision which is the impact of one stationary (not moving vessel) and one moving vessel
Doctrine of Inscrutable Fault – If there is a collision of two vessels and it cannot be determined which of
the vessel is at fault, the owners of the two vessels shall bear their respective averages. However, both
ship-owners are solidarily liable for the averages to all cargoes.
AVERAGES > In admiralty, they refer to damages
Types of Averages:
1) Gross/General Average – loss/damages suffered by the vessel or cargo, as a consequence of
which, the owners of the other cargoes or vessel was spayed from damages thereby obliging those
benefitted to indemnify or contribute to the indemnity of the owner of the vessel or cargoes for the
damages suffered.
2) Specific/Particular Average – damages suffered by a vessel or cargo which benefits no one so the
loss or damages shall be borne solely by the owner of the cargoes or vessel.
Procedure for General Average:
1) Captain calls a meeting with the representatives of the owners of cargo.
2) They make a decision to throw away certain cargo.
3) If the decision is urgent, the captain may choose from the largest and of least value proceeding to the smallest
of the most value.
Three divisions/zones of time in Collision of vessels:
1) First zone – anytime the danger of collision appears.
2) Second zone – from the time the danger appears until it becomes a practical certainty
3) Third zone – from the time it becomes a practical certainty until actual impact.
2) ARRIVAL UNDER STRESS – when a vessel is forced to sail to the nearest port due to:
o Natural calamity along route of the vessel.
o Avoidance of pirates
o Loss of provisions (water or fuel)
o Accident that renders the vessel incapable of prosecuting the voyage
What is the obligation of a ship captain in arrival under stress? > The captain must execute a MARITIME
PROTEST, a sworn statement where the captain relates what transpired.
3) SHIPWRECK
Is the owner of a barge a party to a contract of carriage? > No, he is not a party, unless the barge
is self-propelled. The contracting party is the owner of the towing vessel.
PUBLIC SERVICE
Who may render public service?
Only - Philippine citizens (whether natural-born or naturalized or by election, as long as Filipino na sya)
- Corporations with 60% ownership by PH citizens
Grandfather Rule: Control test where the citizenship of the corporation owning another is taken into consideration in determining the 60%
Filipino ownership
Who regulates public service?
▪ Under the 1935 Constitution, it was the Public Service Commission.
Now, it is regulated by different government agencies: DOTC, LTFRB, CAB, MARINA, LGUs (lakes, rivers)
How to engage in public service
1) Application by petition
2) Hearing
3) Issuance of a Certificate of Public Convenience, or Certificate of Public Convenience and Necessity.
✓ CERTIFICATE OF PUBLIC CONVENIENCE – a written authority issued by the government
regulator to enable persons to engage in public service.
✓ CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY – it is the written authority
issued by the government regulator to enable a person to engage in public service for which
service a legislative franchise is required.
*Requirements or Qualifications to engage in Public Service
1) Philippine citizenship
2) Willingness to engage in Public Service
3) *Financial capacity – purposes of which are:
a. Acquiring equipment to engage in Public Service
b. To pay for damages in case of liability
Kabit System – it is an illegal manner of engaging Public Service by someone who lacks the qualifications by doing
it through others who possess the qualifications.
Can the legitimate operator file a case against the kabit operator in case the latter caused damage to
another? > Where parties are in pari delicto, the court will leave them as they are. So kung nakadisgrasya
yung kabit operator, yung legitimate operator/registered owner nung vehicle yung magiging liable for
damages sa injured party, and if si registered owner nagfile ng 3rd party complaint against kay kabit
operator, ididismiss lang yung 3rd party complaint because their arrangement is illegal.
Boundary System – where the driver pays an amount to the operator of a jeep for use of the motor vehicle for an
agreed period. According to the SC, there is an employer-employee relationship between the driver and the operator
under the boundary system, by reason of the control test.
PRIOR APPLICANT RULE: If two or more persons apply to render the same public service, the one who first filed
the application should be granted the authority
OLD OPERATOR RULE: If someone is already rendering the service, it must first be allowed to offer to add the
same service
