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All Jurisprudence based

0 tracked cards Commercial and Taxation Laws

A Philippine importer, Apex Components Co., contracts OceanLine Shipping Lines to transport 2,000 electronic components valued at PHP 4,000,000 from Manila to Iloilo. A Bill of Lading names OceanLine Shipping Lines as carrier. During the voyage, hatch covers are left unsecured due to a maintenance backlog; the vessel has known engine issues. A squall hits the voyage, causing seawater damage to 64% of the cargo, valued at PHP 2,560,000. OceanLine Shipping Lines refuses liability, citing a defense of perils of the sea. Under the Carriage of Goods by Sea Act, is OceanLine Shipping Lines liable? Briefly state the controlling rule, how the fact pattern fits or does not fit, and the likely outcome.

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The carrier is liable in full; the defense of perils of the sea does not apply because the unsecured hatch covers render the vessel unseaworthy and the loss is due to carrier's negligence. The carrier is not liable; the damage resulted from perils of the sea, which are a lawful defense under the Act. The carrier is liable only for the portion of loss if timely notice of loss was given; without timely notice, no recovery regardless of cause. The carrier is liable for all damage because hatch cover negligence and unseaworthiness at the start of voyage negate any perils-of-the-sea defense.

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