Transpo Reviewer Chapter 8

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    Chapter 8

    APPLICABLE LAWS AND RULES

    Mortgage and other encumbrances over vessels are governed by the provisions of PD !"or a#so $no%n as the S&IP '(R)*A*E DECREE (+ ,-8 as %e## as Se./ " of E( No/

    "!0 as a1ended 0 is being i1p#e1ented %ith respe.t to ANN()A)I(N2CANCELLA)I(N of 1ortgages and transfer of rights and other en.31bran.es of vesse#s 'e1orand31.ir.3#ar 455 iss3ed by 'ARINA/

    WI)& RESPEC) )( PRE+ERRED '(R)*A*E0 provisions of PD 1521 prevai# over CI6ILC(DE AND C(DE (+ C(''ERCE provisions/ REAS(N7 General legislation must give wayto special legislation on the same subject.

    (Source: PD 1521 or also known as the SHIP MORTGAGE DEREE O! 1"#$% was enacte& toaccelerate the 'rowth an& &eelo)*ent o+ the sh,)),n' ,n&ustr- an& to e.ten& /ene+,tsaccor&e& to oerseas sh,)),n' un&er PD 210 to &o*est,c sh,)),n'

    Who 1ay .onstit3te a ship 1ortgage 9 Se./ ":

    a. Any citien o! the Philippines"andb. Any association or corporation organied under the laws o! the Philippines# at least $%&

    o! the capital o! which is owned by citiens o! the Philippines' PURP(SE:  1ay for the p3rpose of finan.ing the C(NS)RUC)I(N0AC;UISI)I(N 0 PURC&ASE of vesse#s or INI)IAL (PERA)I(N of vesse#s0 free#y.onstit3te a 1ortgage or any other #ien or en.31bran.e on his or its vesse# andits e0 (R ()&ER +INANCIAL INS)I)U)I(NS0 do1esti. or foreign/

    N( 'ortgage of 6esse# of Do1esti. o%nership0 as the %ho#e or any part thereof0

    sha## be va#id0 in respe.t to s3.h vesse# against any person other than the1ortgagor0 his heir or assign 0 and a person having a.t3a# noti.e thereof0 UN)IL

    SUC& '(R)*A*E IS REC(RDED IN )&E (++ICE (+ )&E P&ILIPPINE C(AS)*UARD (+ )&E P(R) (+ D(CU'EN)A)I(N (+ SUC& 6ESSEL/

    )he Coast *3ard Distri.t or Station Co11ander sha## re.ord 1ortgages de#ivered

    to hi1 in )&E (RDER (+ RECEP)I(N0 in boo$s to be $ept for that p3rpose andinde?ed to sho%7

    a. (ame o! the vessel"b. (ames o! parties to the mortgage"c. )ime and date o! reception o! the instrument"d. )he interest in the vessel so mortgaged"

    e. )he amount and date o! maturity o! the mortgage"!. (ame# citienship# nationality and residence o! the owner"andg. Any material change o! condition in respect to any o! the preceding items.

    A .opy of the instr31ent sha## be f3rnished the CEN)RAL BAN>/

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    Preferred 1ortgages@ A va#id 1ortgage %hi.h at the ti1e it is 1ade in.#3des )&EW&(LE (+ AN= 6ESSEL (+ D('ES)IC (WNERS&IP sha## have0 in respe.t tos3.h vesse# and as of date of re.ordation0 the PRE++ERED S)A)US given by SEC/- 0 I+7

    a. )he mortgage is *+,-*D+D"b. A/DA0/) / /+D with the record o! such mortgage to the e!!ect that mortgage is

    made in good faith and without any desire to 3/(D+*# D+A4# or D+*AD anye6isting or !uture creditor o! the mortgagor or any lien or o! the mortgaged vessel"

    c. )he mortgage does (-) )/PA)+ that the M-*)GAG++ 7A/0+ theP*++**+D )A)"

       A essel hol&,n' s Pro,s,onal ert,+,cate o+ Ph,l,)),ne Re',str- ,s considered a vessel 

    of domestic ownership such that it can be subject of preferred mortgage.

      There shall /e endorsed   u)on the &ocu*ents o+ a essel coere& /- a )re+erre& 

    *ort'a'e

      Endorse1ent sha## be 1ade by the ff7a. ,oast guard district or station commander o! the port o! documentation o! the mortgaged

    vessel"andb. ,oast guard district or station commander o! any port in which the vessel is !ound .

      A 1ortgage in.#3des property other than a vesse# sha## not be he#d a preferred

    1ortgage 3n#ess the 1ortgage provides for SEPARA)E DISC&AR*E (+ SUC&PR(PER)= by pay1ent of spe.ified portion of the 1ortgage indebtedness/A 1ortgage in.#3des '(RE )&AN 6ESSEL and provides for separate dis.harge

    of ea.h vesse# by pay1ent of a portion of 1ortgage indebtedness0 the a1o3nt of s3.h pay1ent sha## be endorsed 3pon the do.31ents of the vesse#/In .ase s3.h 1ortgage D(ES N() PR(6IDE for SEPARA)E DISC&AR*E and the

    vesse# is to be so#d 3pon the order of the Phi#ippines in a s3it in re1 in ad1ira#ity0the .o3rt sha## deter1ine the portion of the 1ortgage indebtedness INCREASEDB= "5 per .ent31 7 /: Whi.h in the opinion of the .o3rt0 the appro?/ va#3e of a##vesse#s .overed by 1ortgage0 and "/ Upon pay1ent of %hi.h the vesse# sha## bedis.harged fro1 1ortgage/PRE+ERRED CLAI'S7 Se./ - provides that preferred 1ortgage #ien sho3#d have

    PRI(RI)= (6ER ALL CLAI'S against the vesse# 0 ECEP) the ff .#ai1s7a/ E6penses and +ees allowed and Costs ta6ed by the court and ta6es due to

    govern1entb/ Crew8s wages./ *eneral average"d/ Salvage # including contract salvage"

    e/ 'aritime liens arising P*/-* in time to the recording o! the pre!erredmortgage"

    f/ Damages arising out o! tort"andg/ Pre!erred mortgage registered prior in time.

      Certified .opies of 1ortgage7

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    ,oast guard district or station commander upon recording o! a pre!erred mortgage shalldeliver 2 certi!ied copies thereo! to 9 1. M-*)GAG-* who shall pla ce# and use duediligence to retain # one copy on board the vessel mortgaged notice o! which shall beP-)+D in a ,-(P/,- place and cause such copy and documents to bee6hibited by the MA)+* to any person having business with the vessel. /! MA)+*7/4 A/+D )- +:3/;/)9 &is 1asters #i.ense 1ay be s3spended or 

    .an.e##ed by the Phi#/ Coast *3ard/

      Prior or s3bse

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    MARITIME LIEN: In general terms, it is a privileged claim on a vessel for some service rende

    NB: Despite transfer of ownership , lien is not extinguished. Lien isIN!"#$#BL! from the vessel and until discharged, it follows the vessel. It%senforcement is in the nature of a &uasi in rem proceeding.

    Pres.ription7 en!orcement o! a maritime lien imposed by special law prescribes in 1%

    years. aches may also lie i! there was unreasonable delay on the part o! claimant inasserting its rights.

    'ariti1e Liens for Ne.essaries/ Maritime liens that are superior to the pre!erred

    mortgage includes maritime lien !or necessaries. ection 21 provides !or the !! re

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    E*E"(T$R) "$NTRA"T #$"TRINE A lien does not attac! for %reac! of an e+ecutor co

    Ne.essity of .redit %i## be pres31ed %here it appears that the repairs and

    s3pp#ies %ere ne.essary for the ship and that they %ere ordered by the 1aster/N( PRESU'P)I(N 0 I+ )&E 'AS)ER DID N() (RDER )&E +UELS AND N(PR((+ (+ NECESSI)= +(R )&E SUPPLIES/

    'ARI)I'E )(R)7 )orts contemplated under ec 1B are maritime torts. it is defined as

    CI6IL WR(N* C(''I))ED (N navigab#e %aters/  As general principle# any conductwhich is tortious under general law and which is connected with the ship or its usescreates a maritime lien. /t includes collision claims and personal injury claims.

    Sa#vage #ien7 either e? .ontra.t3 or that i1posed by A.t No/ "FF/ Sa#vage is given

    preferen.e be.a3se of the benefit .onferred in PRESER6IN* )&E 6ALUE (+ )&E6ESSEL and the CAR*(/

    When pro.eeds N() s3ffi.ient7 the residue shall be divided among them pro rata. All

    credits not paid# whether !ully or partially shall subsist as ordinary credits en!orceable bypersonal action against debtor.

    )est to deter1ine the presen.e of 1ariti1e #ien

    a/ /n a suit to establish and en!orce a maritime lien !or supplies !urnished to a vessel ina !oreign port# whether such lien e6ist or whether the court has or will e6ercise

     jurisdiction# depends 3pon the #a% of the .o3ntry %here the s3pp#ies %eref3rnished0 %hi.h 13st be p#eaded and proved

    b/ La3ritGen@Ro1ero@Rhodits tri#ogy of .ase7 1.> place o! wrong!ul act"2.> law o! the!lag C.> allegiance or domicile o! the injured .> allegiance o! the de!endantshipowner" 5.> place o! contract"$.> inaccessibility o! !oreign !orum"and B.> law o! the!orum.

    ./ +a.tors provided in Restate1ent of Conf#i.ts of La%7 /n the absence o! e!!ectivechoice o! law by the parties# the !orum contacts should be considered include9 a. theplace o! !orum contacts to be considered include the 9 a. place o! the contractingparties" b. place o! negotiation" c.place o! per!ormance" d.> location o! the subjectmatter o! the contract" and e. domicile and residence # nationality # place o! incorporation o! business o! the parties.

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    NB: MARINA now administers the annotation and or cancellation of the

    ANY mortgage over the vessels.

      Mortgage with non-maritime property: In case a mortgage w!ic!

    includes propert ot!er t!an vessel , t!e mortgage s!all N$T E -EL# A

    RE/ERRE# mortgage (NLE'' t!e mortgage provides for t!e separate

    disc!arge of suc! propert % pament of speci0ed portion of mortgageinde%tedness.

      If a preferred mortgage so provides for separate discharge, the

    amont of the portion of sch payment shall !e endorsed pon the

    docments of the vessel"  #he rles do not apply to mortgage over the vessel and her freight

    !ecase the freight in this sitation is considered part of the vessel

    for sch prpose.  It is more advisa!le to ta$e separate mortgages on the maritime and

    non-maritime property B%&A'(% there is no discerna!le advantage

    in the composite mortgage, since there mst !e a separate

    recordation of the ship and non-maritime property and foreclosreactions on defalt.)oreclosre: is onl an alternative remed. T!e mortgagee ma avail of t!e

    laternative remed of speci0c performance in suit in personam in admiralt.

    &hapter *+ersons who ta$e part in Maritime &ommerce

      ia!ility of (hipowners and ship agents: 'hipowner  is t!e person

    RIMARIL) LIALE for damages sustained in t!e operation of t!e vessel1Naviero nder the &ode of &ommerce incldes: '-I $&NER, A2ENTand even "-ARTERER w!o is considered as owner pro !ac vice.

      (I+ A%N#: under t!e code of commerce, a person entrsted with theprovisioning of the vessel , or represents her in the port in which shehappens to !e. IABII#Y: /oint and several with the owner.%0#%N# 1) IABII#Y:  T!e 3oint and several lia%ilit applies to $T- for

    !reach of contract and e2tra contractal o!ligations sch as tort.  T!elia%ilit is !owever su%3ect to t!e IMI#%3 IABI#Y R'%.(hipowner and ship agent shall !e &I4IY IAB% for the A( of 

    the &A+#AIN and for the 1BIA#I1N( contracted !y the latter toR%+AIR, %5'I+, and +R14I(I1N the vessel, +R14I3%3 that thecreditor +R14%( that the amont was invested for the !ene6t of thesame.

      (hip agent shall also !e &I4IY IAB% for the indemnities in favor

    of 7rd persons which may arise from the &1N3' 1) #% &A+#AIN inthe care of goods which he loaded on the vessel" B'# he may%0%M+# therefrom !y ABAN31NIN the 4%((% with all here8ipments and the freight may have earned dring the voyage.

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      9hen captain acts in e2cess of athority : R: 1wner and agent shall

    not !e held lia!le . %2ception: 1wner and agent shall !e lia!le if theproceeds of an o!ligation redonded to the !ene6t of the vessel.

      ia!ility for e2tra-contractal o!ligations: $wner and agent are lia%le

    for tortious acts of captain4agents. If t!e cause of action is %ased on quasi 5delict, t!ere is a vicarious lia%ilit on t!e part of t!e emploer6 #irect andrimar lia%le wit! emploee7

      +art owners: If 8 or more persons s!ould part owners of a merc!ant

    vessel, a partners!ip s!all %e presumed esta%lis!ed % t!e co9owners.a.  T!e partners!ip s!all %e governed !y the resoltions of ma;ority of 

    mem!ers"!. A vessel s!all not %e detained or levied upon in e+ecution in its entiret for

    private de%ts of a part owner, %ut t!e proceedings s!all %e limited to t!einterest w!ic! t!e de%tor ma !ave in t!e vessel wit!out interfering wit!t!e navigation.

    c. "o9owners s!all %e civill lia%le in t!e proportion of t!eir interests in t!ecommon fund, for t!e results of t!e acts of t!e captain1

    d. Eac! co9owner ma e+empt !imself % a%andonment %efore a notar of t!e part of t!e vessel %elonging to !im1

    e. '!all liewise %e lia%le in t!e same proportion for t!e e+penses for t!emaintenance , equipment and provisioning of vessel, necessar fornavigation.

      (hip agent mst have the capacity to trade and mst !e recorded in

    the mechant

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    MARINA R'%(: Master: person !aving command of t!e s!ip w!et!erdomestic or international trade. &!ile a !oat captain: a person aut!ori;ed% MARINA to act as o. To appoint or ma$e contracts wit! t!e crew in t!e a%sence of t!e s!ipagent 1 %ut s!ipagent ma not emplo an mem%er against t!e captain@se+press refusal1

    8. To command the crew and direct the vessel to t!e port of itsdestination , in accordance wit! transactions !e ma !ave received fromt!e s!ip agent1

    =. To impose in accordance wit! contracts and laws and regulations of t!emerc!ant marine and w!en on %oard t!e vessel , correctional punis!mentupon t!ose w!o fail to compl wit! !is orders

    . -old preliminar !earing on crimes committed on %oard t!e vessel on t!eseas, w!ic! crimes s!ould %e turned over to t!e aut!orities !aving

     3urisdiction over t!e same at 0rst port touc!ed1B. To ma$e contracts for the charter of the vessel  in a%sence of s!ip

    agent or its consigneeC. +rotect the interest of the owner with tmost careD. #o adopt all proper measres  to eep t!e vessel well supplied and

    equipped, purc!asing all t!at ma %e necessar for t!e purpose , providedno time to request instruction from s!ip agent1

    . To order, in similar rgent cases while on voyage, the repairs on

    the hll and engines of the vessel which are necessary to 6nishthe voyage. 3iscretion of &aptain or Master: A s!ip captain must %e accorded

    reasona%le measure of discretionar aut!orit to decide w!at t!e safet of t!e s!ip and of its crew and cargo speci0call requires on a stipulated oceanvoage.

    ia!ility of &aptains and Masters:

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    #he captain shall !e civilly lia!le to the (I+ agent and the latter to7rd persons w!o ma !ave made contracts wit! t!e former:>. /or all damages suFered % t!e vessel and its cargo % reason of want of 

    sill or negligence on !is part. If a misdemeanour or crime %e committed,s!all %e lia%le under R$"1

    8. /or all t!e t!efts committed % crew, reserving !is rig!t of action against

    t!e guilt part1=. /or losses ,0nes, con0scations imposed an account of violation of 

    customs, police , !ealt! and navigation laws1. /or losses and damages caused % mutinies on %oard t!e vessel or %

    reasons of faults committed % t!e crew in service and defense of t!esame , if !e does not prove t!at !e made timel use of all !is aut!orit toprevent or avoid t!em1

    B. /or caused % misuse of powers and non9full0lment of o%ligationsC. /or t!ose arising % reason of !is going out of !is course or taing course

    w!ic! !e s!ould N$T !ave taen wit!out su

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    &olliding vessel is prima facie responsi!le, hence, the !rden of 

    proof is pon the party claiming !ene6t of the e2emption fromlia!ility.

    +ilot association is N1# ;ointly and severally lia!le with the mem!er

    pilot. No employer-employee relationship.1?cers and &rew of vessels: the @complement of a vessel shall !enderstood as : ALL persons on %oard, from t!e captain to the ca!in !oy ,necessary for the management , manevers and service and therefore,the complement shall inclde the : &rew, sailing mates, engineers,stro$ers, and other employees on !oard not having speci6cdesignations" B'# shall not inclde passengers or persons whom thevessel is transporting.

    (AIIN MA#%: #he chief or sailing mate is the >nd  in command . ne2tonly to the captain of the vessel.

    Memorandum Circular # 137:

    Master- is a person !aving command of a s!ip  3ec$ o?cer- means an o

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    Marine 3ec$ 1?cers and Board of Marine %ngineer 1?cers. +hil.Merchant Marine 1?cers Act of =**.

    Merchant Marine +rofession: s!all refer to t!e profession requiring

    t!e application of fundamental and nown principles of navigation ,seamans!ip, and engineering to t!e peculiar condition andrequirements of on %oard management , operation and maintenance of 

    main propulsion and au+iliar engines, sta%ilit and trim of t!e vesseland cargo !andling. It s!all also cover %ut will not %e limited to t!efollowing:a. roper !andling and stowage of cargoes on %oard w!ic! includes

    t!e safe carriage of passengers from port of origin to port of destination

    !. 'afe watc!eeping of t!e vessel@s navigation in accordance wit! t!erules of t!e road at t!e sea1

    c. Maritime education and training cadets and ot!er marineprofessionals1

    d. Emploment wit! government.  Merchant Marine vessel: s!all appl onl to t!e commercial s!ips,

    propelled % mac!iner , pu%lic or private, strictl engaged in maritimecommerce, %ot! seagoing and or near coastal trade, vessels engagedin t!e training of cadets for merc!ant marine profession and noncom%atant vessel in t!e !il. 2overnment.

      Minimm safe manning: T!ere must %e su

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    term , and pledges t!e s!ip 6 or t!e eel or %ottom of t!e s!ip pars pro toto7as securit with the stiplation that if the ship is lost dring thevoyage or dring the limited time on accont of the perilsenmerated , the lender shall lose his money.

      9here goods or some part thereof , are hypothecated as secrity for

    a loan,  t!e repament of w!ic! is dependent upon maritime riss, w!at

    ensues is a loan respondentia. #he sal form of a loan onrespondentia is that of a !ond. It is the !orrower

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    !. means of a polic signed % contracting parties and t!e %roertaing part t!erein1

    c. means of private instrumentd. Must %e entered in t!e certi0cate of registr of t!e vessel and s!all

    %e recorded in t!e registr of vessel.e.  T!e contract must contain a statement of t!e ind, name and

    registr of t!e vessel : t!e name , surname , and domicile of t!ecaptain

    &hapter =>Averages

      Averages in general , provides that the C shall !e considered

    averages:a. All e+traordinar or accidental e+penses w!ic! ma %e incurred during t!e

    voage in order to preserve t!e vessel, t!e cargo or %ot!1!. An damage or deteriorations w!ic! t!e vessel ma suFer from t!e time it

    puts to sea from t!e port of departure until it casts anc!or in t!e port of destination and t!ose suFered % t!e merc!andise from t!e time t!e areloaded in t!e port of s!ipment until t!e are unloaded in t!e port of t!eirconsignment.

      A petty and ordinary e2penses incident to navigation sch as those

    of pilotage of coasts and ports, lighterage and towage, anchorage ,inspections , health, 8arantine , laGaretto and other so-called porte2penses, shall !e considered 1R3INARY e2penses to !e defrayed !ythe shipowner , nless there is an e2press agreement to thecontrary.&lassi6cations of averages: (imple " and eneral or gross average.

      (IM+% A4%RA%: or particular averages s!all include all t!e e+penses and

    damages caused to t!e vessel or to !er cargo w!ic! have not inred to the

    common !ene6t and pro6t of all the persons interested in the vesseland her cargo. If t!e damage caused is not a general average, t!e samecan %e considered particular. Borne !y: the owner of the goods thatsCered the damage !ears the loss. "onsistent wit! res perit domino#%N%RA A4%RA%: shall inclde all t!e damages and e+penses w!ic!

    are deli%eratel caused in order to save t!e vessel , its cargo or %ot! at t!esame time from real and nown ris.

      Re8isites:

    a.  T!ere must %e a common danger1!. /or common safet part of t!e vessel or t!e cargo or %ot! is sacri0ced

    deli%eratel1c.  T!at from t!e e+penses or damages caused follows t!e successful saving

    of t!e vessel and cargod. E+penses and damages s!ould !ave %een incurred after taing properlegal steps and aut!orit. &1MM1N 3AN%R: !oth t!e s!ip and cargo, after !as %een loaded

    are su%3ect to t!e same danger , w!et!er during t!e voage or in t!eport of loading or unloading1 t!e danger arises from accidents of t!esea, dispositions of aut!orit or faults of men

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    3eli!erate (acri6ce:  T!ere must %e a voluntar sacri0ce on t!e part

    of t!e %ene0t of t!e w!ole in order to 3ustif general averagecontri%ution. It cannot involve a damage w!ic! is resulted %eond t!econtrol of t!e captain and crew or wit!out an intention on t!eir part.

    (acri6ce is made throgh ;ettison of the cargo or part of the

    ship is thrown over!oard dring the voyage. owever, therecan also !e a general average even if the sacri6ce was notmade dring the voyage in at least > cases:a. &!ere t!e sining of a vessel is necessar to e+tinguis! 0re in a

    port, roadstead , cree or %a1 and%. &!ere cargo is transferred to lig!ten t!e s!ip on account of a storm

    to facilitate entr into a port.+t should be noted that the loss can no longer be considered a generalaverage if the thing was +nevitably lost#

    (ccessfl (acri6ce : No general contri%ution can %e demanded if 

    t!e vessel and ot!er cargo t!at are soug!t to %e saved were in fact notsaved. T!e owners of t!e goods saved s!all not %e lia%le for t!eindemni0cation of t!ose 3ettisoned , lost, or damaged.

    )or e2ample: goods belonging to !r# A were sacri,ced to save theship from sining due to typhoon# here will be no general averagecontribution if the ship still san because of the same typhoon# $encethe sacri,ce was not successful in saving the ship# $owever if the shipwas saved from typhoon there will be liability for general averagecontribution even if the vessel will be subse.uently lost for some other reason during the voyage#

      9ho !ears general average: #hose who !ene6ted from the

    sacri6ce.  T!ese include t!e s!ip owner and owners of t!e cargoest!at were saved. "ontri%ution ma also %e imposed on insurers of t!evessel or cargoes t!at were saved as well as lenders on %ottomr orrespondentia.enders on !ottomry or respondentia shall sCer, in proportion

    to their respective interest, the general average which mayta$e place in the goods on which the loan is made.9ho is entitled to indemnity:

    a. T!e owner of t!e cargoes w!ic! were sacri0ced is entitled toreceive general average contri%ution1owever, the C goods even if sacri6ced are not covered:

    a. 2oods carried on dec unless t!e rule, special laws or

    customs of t!e place allow t!e same1%. T!e goods t!at are not recorded in %oos or records of t!evessel1

    c. T!e fuel for t!e vessel if t!ere is more t!an su

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     Yor$-Antwerp Rles: Ma %e agreed to %e applied to solve controversies

    where no provision in &ode of &ommerce is in point !ecase the saidrles em!ody the cstom of maritime states.

     Yor$-Antwerp Rles of =*KJIn t!e ad3ustment of general average t!e F rules s!all appl to t!e e+clusion of an law and practice inconsistent t!erewit!:

    Rle A: Yor$-Antwerp Rles:  T!e general average act w!en and onl w!en,an e+tra ordinar sacri0ce or e+penditure is intentionall and reasona%l madeor incurred for t!e common safet for t!e purpose of preserving from peril t!epropert involved in a common maritime adventure.Rle B: A  sacri0ces and e+penses s!all %e %orne % diFerent contri%utinginterests .Rle &: $nl suc! losses, damages or e+penses w!ic! are t!e directconsequence of t!e 2A act s!all %e allowed as 2A.Loss or damage sustained % t!e s!ip or cargo t!roug! dela , w!et!er on voageor su%sequentl, suc! as demurrage, and an indirect loss w!atsoever, suc! asloss of maret, s!all not %e admitted as 2A

    Rle 3: Rig!ts to contri%ution in 2A s!all not %e aFected t!oug! t!e event w!ic!gave rise to t!e sacri0ce or e+penditure ma !ave %een due to t!e fault of one of t!e parties to t!e adventureRle %: T!e onus of proof is upon t!e part claiming in 2A to s!ow t!at t!e lossor e+pense claimed is properl allowa%le as 2A.Rle ): An e+tra e+pense incurred in place of anot!er e+pense w!ic! would!ave %een allowa%le as 2A s!all %e deemed to %e a 2A and so allowed wit!outregard to t!e saving, if an, to t!e ot!er interest, %ut onl up to t!e amount of 2Ae+pense avoided.Rle : 2A s!all %e ad3usted as regards %ot! loss and contri%ution upon t!e%aseis of values as t!e time and place w!en and w!ere t!e adventure ends.Rle I: No 3ettison of cargo s!all %e made good as 2A, unless suc! cargo carriedin accordance wit! t!e recogni;ed custom of trade. 

     Transportation Law: Aquino