PHILIPPINES Law and Practice Contributed by: Valeriano Del Rosario, Daphne Ruby Grasparil, Patrick Sarmiento and Maria Francesca Bautista, VeraLaw
2.2 International Conventions: Collision and Salvage The Philippines is not a signatory to either the 1910 Brussels Collision Convention or the 1989 International Convention on Salvage. However, regarding collisions, the Philippines adheres to and applies the 1972 International Regulations for Preventing Collisions at Sea (“Collision Regulations”). The Collision Regula - tions are part of the Philippine Merchant Marine Rules and Regulations of 1997, which were promulgated by MARINA. The rules on collision liability in the Philippines are set out in the Code of Commerce. The rule is basically all or nothing. If both vessels are to blame, then each ship must bear its own loss, but both vessels are jointly and solidarily liable for the cargo loss on both ves - sels. To succeed in a collision claim, the claimant ship must be completely blameless. The Philippines has its own domestic legislation on salvage. The Philippine Salvage Law is set out in Act No 2616, and the principles for a valid salvage service are no different from the concept as it exists in the United Kingdom, that is, the party performing the service must be a volunteer, there must be danger, and the service must be successful. 2.3 1976 Convention on Limitation of Liability for Maritime Claims The Philippines is not a signatory to the 1976 Convention on Limitation of Liability for Maritime Claims. The domestic law on limitation of liability is set out in the Code of Commerce. The limi - tation amount is the value of the ship plus the value of the freight being earned during a voy - age. If the ship has been damaged, the limitation amount would be the ship’s damaged value plus the value of the freight in the course of being earned. The right to limit liability has been cur -
tailed by the 2003 judgment in Aboitiz v New India. This Supreme Court judgment clarified that if there is a finding of any kind of unseawor - thiness against the vessel, the owner loses the right to limit liability, regardless of whether the unseaworthiness arose through the owner’s fault or negligence. 2.4 Procedure and Requirements for Establishing a Limitation Fund A limitation action is an available remedy under the Admiralty Rules and is commenced by filing a verified (sworn) complaint impleading all known defendants any time after a marine casualty that causes damage, injury or death. The defendants are the parties that are known to the owner that have claims against the limitation fund. To avail itself of the limitation action, the ship-owner, charterer, or person in possession and control of the vessel must abandon the vessel with all its appurtenances, equipment and freightage by notarial act filed with the Ship Registry. However, abandonment by notarial act is not necessary in the case of a total loss. The amount of the limitation shall be determined during a hearing set by the Admiralty Court based on judicial affidavits submitted by the parties. The limitation fund is constituted either by making a deposit of money to the Admiralty Court or by producing a letter of undertaking from a P&I club. 2.5 Seafarers’ Safety and Owners’ Liability In an effort to align domestic legislation with international conventions such as the 2006 Mari - time Labour Convention and the 1978 Interna - tional Convention on Standards of Training, Cer - tification and Watchkeeping for Seafarers, so as to ensure that Filipino seafarers have protections and opportunities in line with global standards,
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