PHILIPPINES Law and Practice Contributed by: Valeriano Del Rosario, Daphne Ruby Grasparil, Patrick Sarmiento and Maria Francesca Bautista, VeraLaw
5. Passenger Claims 5.1 Laws and Conventions Applicable to the Resolution of Passenger Claims The Philippines is not a signatory to any inter - national conventions relating to maritime pas - senger claims. For claims such as these, we rely on the New Civil Code provisions as well as our Code of Commerce. Under the New Civil Code, for contractual breaches, the prescriptive period is ten years from the date the cause of action arose. For actions based on tort, the time bar is four years. The personal injury of a passenger is consid - ered a maritime claim. Article 587 of the Code of Commerce, as elaborated by Supreme Court jurisprudence, provides that ship-owners may be held liable for the indemnities in favour of third persons arising from the conduct of the captain in relation to transported goods, as well as for the safety of passengers. However, the same provision provides that the owner may exempt itself and limit liability by abandoning the vessel (including its equipment and freight it may have earned). To add, for cases of cancelled, delayed or uncompleted voyages, MARINA has issued Memorandum Circular No 7, series of 2018, which lists the rights of passengers and obliga - tions of domestic operators. 6. Enforcement of Law and Jurisdiction and Arbitration Clauses 6.1 Enforcement of Law and Jurisdiction Clauses Stated in Bills of Lading The choice of law and jurisdiction in the Phil - ippines is subject to the doctrine of forum non
conveniens; ie, a court, in conflict-of-laws cases, may refuse jurisdiction where it is not the most convenient or available forum, and the parties are not precluded from seeking remedies else - where. In determining the applicability of said doctrine, the court considers the “connecting factors” such as the situs of the res, the place where the deal was executed, the place of per - formance, or the place of wrongdoing. 6.2 Enforcement of Law and Arbitration Clauses Incorporated Into a Bill of Lading As a rule, the Philippines recognises arbitration as a means of resolving civil disputes. Parties may agree to enter arbitration either through an arbitration agreement contained in a con - tract between the parties or through a submis - sion agreement. As such, an arbitration clause appearing on the face of a bill of lading is legally binding and enforceable in the Philippines. For purposes of arbitration, the parties’ stipula - tion as to the choice of law in their agreement shall govern the substance of the dispute. 6.3 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards The recognition and enforcement of a foreign arbitral award in the Philippines is governed by the 1958 New York Convention on the Recogni - tion and Enforcement of Foreign Arbitral Awards, and Administrative Matter No 07-11-08-SC promulgated by the Supreme Court of the Phil - ippines, otherwise known as the Special ADR Rules, and its implementing Rules and Regula - tions. 6.4 Arrest of Vessels Subject to Foreign Arbitration or Jurisdiction Rule 5 of Administrative Matter No 07-11-08- SC mentioned in 6.3 New York Convention on
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