3. What is the limited liability rule?

No vessel, no liability, expresses in the nutshell the limited liability rule. It means that the shipowners or agents
liability is merely co-extensive with his interest in the 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.

4. Is there any exception to the abovementioned rule?

Yes. The exceptions are the following: (a) where the injury or death to a passenger is due either to the fault of the
shipowner, or to the concurring negligence of the shipowner and the captain; (2) where the vessel is insured; and (3)
in workmens compensation.

5. Who has the burden of proof in order to in voke limited liability doctrine?

The carrier or shipowner has the burden of showing that it exercised extraordinary diligence in the transport of goods
it had on board in order to invoke the limited liability doctrine.

6. What is abandonment of the vessel means?

It is an indispensable requirement before the shipowner or ship agent can enjoy the benefits of the limited liability
principle. If the carrier does not want to abandon the vessel, then he is still liable even beyond the value of the vessel.

WHAT IS THE DOCTRINE OF LIMITED

LIABILITY?
Also called the no vessel, no liability doctrine, it provides that liability of ship owner is limited to ship
owners interest over the vessel. Consequently, in case of loss, the ship owners liability is also
extinguished. Limited liability likewise extends to ships appurtenances, equipment, freightage, and
insurance proceeds. The ship owners or agents liability is merely co-extensive with his interest in
the vessel, such that a total loss of the vessel results in the liabilitys extinction. The vessels total
destruction extinguishes maritime liens because there is no longer any res to which they can attach.
(Monarch Insurance v. CA, G.R. No. 92735, June 8, 2000)
WHAT ARE THE EXCEPTIONS TO
THE DOCTRINE OF LIMITED
LIABILITY?
1. Repairs and provisioning of the vessel before the loss of the vessel; (Art. 586)
2. Insurance proceeds. If the vessel is insured, the proceeds will go to the persons entitled to claim
from the shipowner; (Vasquez v. CA, G.R. No. L-42926, Sept. 13, 1985)
3. Workmens Compensation cases (now Employees Compensation under the Labor Code);
(Oching v. San Diego, G.R. No. 775, Dec. 17, 1946)
4. When the shipowner is guilty of fault or negligence; Note: But if the captain is the one who is guilty,
doctrine may still be invoked, hence, abandonment is still an option.
5. Private carrier; or
6. Voyage is not maritime in character.

http://www.syciplaw.com/Documents/Limitation%20of%20Liability%20in
%20Maritime%20Accidents.pdf

If the highest aim of a captain were to preserve his ship, he would keep it in port forever.

Thomas Aquinas

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at http://www.brainyquote.com/quotes/quotes/t/thomasaqui187122.html#8XCQvy8HZTS7wWwy.99

"The captain goes down with the ship" is the maritime concept and tradition that a sea captain holds
ultimate responsibility for both his ship and his passengers and will die trying to save either of them.

The concept is closely related to another protocol from the nineteenth century, "women and children first."
Both reflect the Victorian ideal ofchivalry in which the upper classes were expected to emulate a morality
tied to sacred honor, service, and respect for the disadvantaged. The actions of the captain and men
during the sinking of HMS Birkenhead in 1852 prompted praise from many due to the sacrifice of the men
who saved the women and children by evacuating them first. Rudyard Kipling's poem "Soldier an' Sailor
Too" and Samuel Smiles' Self-Help both highlighted the valour of the men who stood at attention and
played in the band as their ship was sinking.

Give honor to the lives..

Bottom lines

Cost of abandoning the ship is much lesser than the liabilities which would follow in salvaging a
vessel.

Changing times law was imposed for the benefit of shipowners to attract people in going into the
business of shipping.

Emphasis on Quality as a way to attack more business..

Better safety procedures increase assurance

Increase the standards innovation pioneer in ackowldgement of rights potential leader in maritime
industryuse of technological advancements globally comepetetive instead of hiding behind the
limited liability, it should be embraced making a stand that yes, there are hazards that may go along the
way, but as true captain, I will not abandon I will do everything to make you reach your destination as
safely as possible I was born to carry you out, I will carry you out

Increase sense of security bring back the beauty of travelling by ship increase transport of humans
provide better assurance to traders the world be a better place

Is there a difference when airplanes crash?

Earning Peoples Trust by abolishing the limited liability rule in Reinventing the
Maritime Industry

Abolishing Limited Liability and Increasing Integrity : The Makings of a Globally

Competitive Maritime Industry

The Philippines is gifted with maritime resources. With waters in between the 7,101
islands, it has the opportunity to become one of the most