The doctrine of limited liability, also called the "no vessel, no liability" rule, limits a ship owner's liability to the value of the ship. If the ship is lost, the owner's liability is extinguished. Limited liability also extends to the ship's equipment, freight, and insurance proceeds. There are some exceptions, including liability for passenger injury due to fault of the owner or captain, or if the ship is insured. For limited liability to apply, the owner must abandon the ship to lose interest in it.
The doctrine of limited liability, also called the "no vessel, no liability" rule, limits a ship owner's liability to the value of the ship. If the ship is lost, the owner's liability is extinguished. Limited liability also extends to the ship's equipment, freight, and insurance proceeds. There are some exceptions, including liability for passenger injury due to fault of the owner or captain, or if the ship is insured. For limited liability to apply, the owner must abandon the ship to lose interest in it.
The doctrine of limited liability, also called the "no vessel, no liability" rule, limits a ship owner's liability to the value of the ship. If the ship is lost, the owner's liability is extinguished. Limited liability also extends to the ship's equipment, freight, and insurance proceeds. There are some exceptions, including liability for passenger injury due to fault of the owner or captain, or if the ship is insured. For limited liability to apply, the owner must abandon the ship to lose interest in it.
The doctrine of limited liability, also called the "no vessel, no liability" rule, limits a ship owner's liability to the value of the ship. If the ship is lost, the owner's liability is extinguished. Limited liability also extends to the ship's equipment, freight, and insurance proceeds. There are some exceptions, including liability for passenger injury due to fault of the owner or captain, or if the ship is insured. For limited liability to apply, the owner must abandon the ship to lose interest in it.
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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.
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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"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
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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
