6/7/2020
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TEMMPC. Petitioner admitted its role as a principal of its agents TMCL, TEMMPC and
Capt. Orbeta in their Joint Partial Appeal[36] before the NLRC.[37] As such, it is
solidarily liable with TEMMPC and TMCL for the benefits under the POEA-SEC.
Doctrine of limited liability is not applicable to claims under POEA-SEC.
In this jurisdiction, the limited liability rule is embodied in Articles 587, 590 and 837
under Book III of the Code of Commerce, viz:
Art. 587. The ship agent shall also be civilly liable for the indemnities in
favor of third persons which arise from the conduct of the captain in the care
of the goods which the vessel carried; but he may exempt himself therefrom
by abandoning the vessel with all her equipment and the freightage he may
have earned during the voyage.
Art. 590. The co-owners of a vessel shall be civilly liable, in the proportion of
their contribution to the common fund, for the results of the acts of the
captain, referred to in Art. 587.
Each part-owner may exempt himself from this liability by the abandonment
before a notary of the part of the vessel belonging to him.
Art. 837. The civil liability incurred by the shipowners in the cases prescribed
in this section, shall be understood as limited to the value of the vessel with
all its appurtenances and freightage earned during the voyage.
Article 837 applies the limited liability rule in cases of collision. Meanwhile, Articles 587
and 590 embody the universal principle of limited liability in all cases wherein the
shipowner or agent may be properly held liable for the negligent or illicit acts of the
captain.[38] These articles precisely intend to limit the liability of the shipowner or
agent to the value of the vessel, its appurtenances and freightage earned in the
voyage, provided that the owner or agent abandons the vessel.[39] When the vessel is
totally lost, in which case abandonment is not required because there is no vessel to
abandon, the liability of the shipowner or agent for damages is extinguished.[40]
Nonetheless, the limited liability rule is not absolute and is without exceptions. It does
not apply in cases: (1) where the injury or death to a passenger is due either to the
fault of the shipowner, or to the concurring negligence of the shipowner and the
captain; (2) where the vessel is insured; and (3) in workmen's compensation
claims.[41]
In Abueg v. San Diego,[42] we ruled that the limited liability rule found in the Code of
Commerce is inapplicable in a liability created by statute to compensate employees and
laborers, or the heirs and dependents, in cases of injury received by or inflicted upon
them while engaged in the performance of their work or employment, to wit:
The real and hypothecary nature of the liability of the shipowner or agent
embodied in the provisions of the Maritime Law, Book III, Code of
Commerce, had its origin in the prevailing conditions of the maritime trade
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