Article 125p. 125

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

ARTICLE

837.

The

civil

liability

contracted

by

the

shipowners in the cases prescribed in this section, shall

be understood as limited to the value of the vessel with all

her appurtenances and all the freight earned during the

voyage.

ARTICLE 838. When the value of the vessel and her

appurtenances should not be sufficient to cover all the

liabilities, the indemnity due by reason of the death or

injury of persons shall have preference.

ARTICLE

839.

If

the

collision should occur between

Spanish * vessels in foreign waters, or if it should take

place in open waters, and the vessels should make a

foreign port, the Spanish * consul in said port shall hold a

summary investigation of the accident, forwarding the

proceedings

to

the

captain-general

of

the

nearest

department * for continuation and conclusion.

SECTION IV Shipwrecks

ARTICLE 840. The losses and deteriorations suffered by a

vessel and her cargo by reason of shipwreck or stranding

shall be individually for the account of the owners, the

part of the wreck which may be saved belonging to them

in the same proportion.

ARTICLE 841. If the wreck or stranding should arise

through the malice, negligence, or lack of skill of the

captain, or because the vessel put to sea insufficiently

repaired and prepared, the owner or the freighters may

demand indemnity of the captain for the damages

caused

to

the

vessel

or

cargo

by the accident, in

accordance with the provisions contained in Articles 610,

612, 614, and 621.

ARTICLE 842. The goods saved from the wreck shall be

specially liable for the payment of the expenses of the

respective salvage, and the amount thereof must be paid

by the owners of the former before they are delivered to

them, and with preference to any other obligation, if the

merchandise should be sold.

ARTICLE 843. If several vessels navigate under convoy,

and any of them should be wrecked, the cargo saved shall

be distributed among the rest in the proportion to the

amount each one can receive.

If any captain should refuse, without sufficient cause, to

receive what may correspond to him, the captain of the

wrecked vessel shall enter a protest against him before

two sea officials of the losses and damages resulting

therefrom, ratifying the complaint within twenty-four

hours after arrival at the first port, and including it in the

proceedings he must institute in accordance with the

provisions contained in Article 612.

Should it not be possible to transfer to the other vessels

the entire cargo of the one wrecked, the goods of the

highest value and smallest volume shall be saved first,

the designation thereof being made by the captain, in

concurrence with the officers of his vessel.

ARTICLE 844. A captain who may have taken on board

the goods saved from the wreck shall continue his course

to the port of destination, and on arrival shall deposit the

same, with judicial intervention, at the disposal of their

legitimate owners.

In case of changing his course, should he be able to

unload them at the port to which they were consigned,

the captain may make said port if the shippers or

supercargoes present consent thereto, as well as the

officers and passengers of the vessel; but he can not do

so, even with said consent, in time of war or when the

port is difficult to make and dangerous.

All the expenses of this arrival shall be defrayed by the

owners of the cargo, as well as the payment of the freight,

which, taking into consideration the circumstances of the

case, are fixed by agreement or by a judicial decision.

ARTICLE 845. If there should not be on the vessel any

person interested in the cargo to pay the expenses and

freight corresponding to the salvage, the judge or court

of competent jurisdiction may order the sale of the part

necessary to cover the same. This shall also be done when

its preservation is dangerous, or when in the period of

one year it should not have been possible to ascertain

who are its legitimate owners.

In both cases the proceedings regarding publicity and

formalities prescribed in Article 579 shall be observed,

and the net proceeds of the sale shall be deposited in a

safe place, in the judgment of the judge or court, in order

to be turned over to the legitimate owners thereof.

TITLE V Proof and Liquidation of Averages

SECTION I Provisions Common to All Kinds of Averages

ARTICLE 846. The persons interested in the proof and

liquidation of averages may mutually agree and bind

themselves at any time with regard to the liability,

liquidation, and payment thereof. t

In the absence of agreements, the following rules shall be

observed:

1. The proof of the average shall take place in the port

where the repairs are made, should any be necessary, or

in the port of unloading.

2. The liquidation shall take place in the port of unloading

should it be a Spanish * port.

3. Should the average have occurred outside of the waters

under the jurisdiction of the Philippines or the cargo

should have been sold in a foreign port by reason of an

arrival under stress, the liquidations shall be made in the

port of arrival.

4. If the average should have occurred near the port of

destination,

so

that

said

port

can

be

made,

the

proceedings treated of in Rules 1 and 2 shall be held

there.

ARTICLE 847. In case of making the liquidation of the

averages privately by virtue of agreement, as well as

when a judicial authority takes part therein at the request

of any of the parties interested who do not agree thereto,

all of them shall be cited and heard, should they not have

renounced this right.

Should they not be present or not have a legitimate

representative, the liquidation shall be made by the

consul in a foreign port, and where there is none, by the

judge or court of competent jurisdiction, according to the

laws of the country, and for the account of the proper

person.

When the representative is a person well known in the

place where the liquidation takes place, his intervention

shall be admitted and produce legal effects, even though

he be authorized only by a letter of the shipowner,

freighter, or underwriter.

ARTICLE 848. Claims for averages shall not be admitted if

they do not exceed 5 percent of the interest which the

claimant may have in the vessel or cargo if it is gross

average, and 1 percent of the goods damaged if particular

average,

deducting

in

both

cases

the

expenses

of

appraisal, unless there is an agreement to the contrary.

ARTICLE 849. The damages, averages, loans on bottomry

and respondentia , and their premiums, and any other

losses, shall not earn interest by reason of delay until the

period of three-days has elapsed, to be counted from the

day on which the liquidation may have been concluded

and communicated to the persons interested in the

vessel, in the cargo, or in both at the same time.

ARTICLE 850. If by reason of one or more accidents of the

sea particular and gross averages of the vessel or the

cargo, or of both, should take place on the same voyage,

the expenses and damages corresponding to each one

shall be determined separately in the port where the

repairs are made or where the cargo is discharged, or

sold, or the merchandise is benefited.

For this purpose the captains shall be obliged to demand

of the expert appraisers and of the contractors making

the repairs, as well as of those appraising and taking part

© Compiled by RGL

125 of 211