Transportation: Article 588.

Shipowner and ship agent are

Chapter VIII not liable for acts of the captain beyond or
exceeding the latters power unless such
Article 586. Civil Liability of the shipowner and amount was used for the benefit of the
the ship agent for the acts of the captain and vessel.
for the obligations contracted by the latter.
Provided the creditor proves that the amount Article 589.asdasd
claimed was invested therein. Article 590
Article 591
Article 587. Civil liability of the ship agent for Article 592
the indemnities in favor of third persons. Article 593
Article 594
Limited Liability Rule: ship agent may exempt Article 595
himself by abandoning the vessel with all her Article 596
equipment and the freight he may have earned Article
during the voyage.
Rationale: real and hypothecary nature of the
liability of the shipowner and agent = to offset
against the adverse conditions and to
encourage shipbuilding and maritime
commerce.

Exceptions to the Rule:

1. injury or death is attributable to the fault of
the shipwoner and the captain
2. where the vessel is insured
3. workmens compensation claims

Jurisprudence of Limited Liability:

 Liability of the shipowner extend to
value of vessel and insurance proceeds
thereon.
 Shipowner may be held liable for
injuries to passengers notwithstanding
the exclusively real and hypothecary
nature of maritime law if fault can be
attributed to the shipowner.
 Claims under workmens compensation
in the labor code, limited liability does
not apply.
 Even if the contract if for a bareboat or
demise charter, dominion over the
vessel remains with the shipowner.
Charterer cannot invoke Limited
Liability rule since the same is given to
the shipowner.