Transportation Laws: Quiz 1
Transportation Laws: Quiz 1
QUIZ 1
The crew of M/V Don Felipe of Loreto Shipping Lines (LSL) were not paid of their monthly
salary for three (3) months. After filing their complaints with the National Labor Relations
Commission (NLRC) against the said company and the vessel, for non-payment of wages and
overtime pays, the shipping company sold the said vessel with Dapa Shipping Corp. (DSC).
While the case is pending LSL went bankrupt. When the decision favorable to the crew was
about to be enforced by the NLRC against the vessel, DSC argued that the claims of the crew
were already extinguished when M/V Don Felipe was sold by LSL to DSC. Is DSC correct?
Why? (25 points)
II
Philip shipped goods from Canada on board a foreign vessel owned and operated by Yukon
Shipping Co., based in Canada and represented in the Philippines by SDN Maritime, Inc., as
ship agent. The goods were consigned to Ricardo of Manila and insured by ABC Insurance
Co. against all risks. Upon arrival in Manila, the goods were delivered to and received by
Ricardo. The goods, however, were found to have sustained damages. Evidence disclosed
that the damage occurred while the goods were in custody of the carrier. The insurance
company paid the amount of the loss but sought reimbursement from Yukon Shipping Co.
and/or SDN Maritime, Inc. SDN disclaimed any liability alleging that it is a mere agent of
Yukon, and having acted as agent of a disclosed principal is, therefore, not liable. Can the
insurance company recover from SDN? (25 points)
III
Upon entering a compulsory pilotage harbor, the captain of M/V Placer owned and operated
by Sea Horse Shipping Co. was joined on the bridge of the ship by a pilot who came on board
for the conduction of the ship to the wharf. The pilot began to give all the directions
concerning the ships movement and the master advised the pilot as to the capabilities of the
ship, its equipment and crew. While the ship was about to dock, it collided with another ship.
It was established that the master failed to intervene when the pilot was navigating the vessel
that it would likely to go into danger. Can Sea Horse Shipping Co. claim benefit of
exemption from liability? (25 points)
IV
MT Diwata, a tanker vessel owned and operated by Claver Shipping, Inc. who is engaged in
the business of transporting fuel products was on a voyage charter with Albor Maritime, Inc.
to transport gasoline from Limay, Bataan to Bohol. While sailing between Marinduque and
Mindoro, MT Diwata collided with a passenger vessel, MV Dona Juana. In the trial, the two
survivors from MT Diwata claimed that they were sleeping at the time of the incident. It was
also established that MV Dona Juana was overloaded with passengers more than it was
allowed, and many were not in the passenger manifest. One of the arguments of Claver
Shipping is that MT Diwata was a private carrier and as such it is not liable and Albor is the
one that should be liable. Decide with reasons. (25 points)