The Rules of Procedure for Admiralty Cases

Section 1

These Rules shall be known as "The Rules of Procedure for Admiralty Cases."

Section 2

The objectives of these Rules are: (a) To provide Regional Trial Courts with a special and summary procedure for Admiralty cases as defined by the Judiciary Reorganization Act of 1980, as amended; (b) To provide parties in Admiralty cases a fast, reliable, and efficient means of recourse to Philippine courts; and (c) To enhance the administration of justice in Admiralty cases in the Philippines through the development of judicial expertise.

Section 3

As used in these Rules, the following definition of terms shall apply: (a) Action in rem — an Admiralty action in rem, directed against a specific ship itself or its particular cargo or freight to satisfy the claim of the plaintiff out of the res. i. Writ of Summons in Action In Rem (writ) — a written command in the name of the court directed against a person in control or possession of the property, or against a ship's Registry, for the latter to act or abstain from acting in some way (See Annex "A"). (b) Action in personam — an Admiralty action in personam, directed against a natural or juridical person who is the owner, charterer, or other person in possession and/or control of a ship or cargo. i. Summons in Action In Personam (summons) — a written command in the name of the court directed to defendant to file an answer. (c) Cargo — the load or lading of ship; the goods or merchandise on board a ship to be carried to a certain port. (d) Charter party — a marine contract by which an entire ship or some principal part thereof is let by the owner to another person for a specified time or use; this includes "bareboat" or "demise" charters, "time" charters, and "voyage" or "trip" charters. (e) Freight — the price or compensation paid for the transportation of goods by a carrier, at sea, from port to port. (f) Limitation action — an action by shipowners or other persons under any written law for the limitation of the amount of their liability in connection with a ship or other property. (g) Limitation fund — a guarantee or deposit made by shipowners to meet any damage claim to facilitate the statutory limit of their liability for the negligence of their captains, officers, or such other persons operating the ship. (h) Marine casualty — any damage against third persons which may arise from the conduct of the captain in the care of the goods which the vessel carries, as well as damages caused to persons or to cargo due to a collision through the fault, negligence, or lack of skill of the captain, sailing mate, or any other member of the complement. (i) Maritime lien — legal claim or charge on property, either real or personal, as a collateral or security for the payment of some debt or obligation. It attaches to a property by operation of law and once attached, it follows the property until it is discharged. (j) Protection and Indemnity Club — A non-governmental, non-profit mutual or cooperative association of marine insurance providers to members that consist of shipowners, operators, charterers and seafarers of the member companies. (k) Relevant person — the person who would be liable on the claim in an action in personam. (l) Ship — includes any description of a vessel used in navigation including hydrofoil boats, air-cushion vehicles, submersibles, floating crafts, and fixed or floating platforms. (m) Vessel — every description of watercraft or other artificial contrivances used, or capable of being used, as a means of transportation on water, whether under its own means or not; it is generally a more comprehensive term than "ship." (n) Warrant of Arrest of a Vessel, Cargo, or Freight — court process by which a ship, cargo, or freight is detained or restricted to secure a maritime claim (See Annex "B").

Section 4

These Rules shall govern the procedure in civil actions before the designated Admiralty courts involving claims and cases in Admiralty filed on the basis of shipping and other related laws, rules and regulations, such as, but not limited to, the following: (a) The Spanish Code of Commerce of 1888, Book III on Maritime Commerce; (b) An Act on Salvage and Rendering of Assistance to Vessels and Cargoes (Act No. 2616 [1916]); (c) Carriage of Goods by Sea Act (Commonwealth Act No. 65 [1936]); (d) New Civil Code of the Philippines, Title VIII, Chapter 3, Section 3 on Common Carriers (Republic Act No. 386 [1949]); (e) Maritime Industry Decree of 1974 (Presidential Decree No. 474 [1974]); (f) Insurance Code, Chapter II, Title I on Marine Insurance (Presidential Decree No. 612 [1974], as amended); (g) Revised Charter of the Philippine Ports Authority (Presidential Decree No. 857 [1975]); (h) Marine Pollution Decree as to Ships (Presidential Decree No. 979 [1976]); (i) Ship Mortgage Decree of 1978 (Presidential Decree No. 1521 [1978]); (j) Philippine Overseas Shipping Development Act (Republic Act No. 7471 [1992]); (k) Domestic Shipping Development Act of 2004 (Republic Act No. 9295 [2004]); (l) Oil Spill Compensation Act of 2007 (Republic Act No. 9483 [2007]); (m) Philippine Coast Guard Law of 2009 (Republic Act No. 9993 [2009]); (n) Single Maritime Administration for STCW (Republic Act No. 10635 [2014]); (o) Liberalization of Cabotage Law (Republic Act No. 10668 [2015]); and (p) Naval Architecture and Marine Engineering Law (Republic Act No. 10698 [2015]). Likewise, these Rules shall be interpreted and implemented consistently with the international standards and norms used in the international shipping industry, much of the substance of which may be found in the following international conventions and instruments, including their respective annexes and protocols: (a) 1982 United Nations Convention on the Law of the Sea (UNCLOS); (b) 1974 International Convention on the Safety of Life at Sea (SOLAS), and its applicable annexes and protocols; (c) 1966 International Convention on Load Lines (LOADLINES); (d) 1969 International Convention on Tonnage Measurement of Ships (TONNAGE); (e) 1978/1995 International Convention on Standards of Training, Certification, and Watchkeeping (STCW); (f) 1973/1978 International Convention for the Prevention of Pollution from Ships (MARPOL); (g) 1952 International Convention relating to the Arrest of Sea-going Ships (ARREST); (h) 1972 International Convention for Preventing Collisions at Sea (COLREGS); and (i) Other conventions of the International Maritime Organization to which the Philippines is a party or signatory.

Section 5

In the implementation or enforcement of the above laws, rules and regulations, the Admiralty jurisdiction of the court refers to the jurisdiction to hear and determine any of the following maritime claims: (a) Loss or damage caused by the operation of the ship; (b) Loss of life or personal injury occurring, whether on land or on water, in direct connection with the operation of the ship; (c) Salvage operations or any salvage agreement, including, if applicable, special compensation relating to salvage operations in respect of a ship which, by itself or its cargo, has threatened damage to the environment; (d) Damage or threat of damage caused by the ship to the environment, coastline or related interests, including the carriage of waste, garbage, or pollution as cargo into the Philippines; measures taken to prevent, minimize, or remove such damage; compensation for such damage; costs of reasonable measures of reinstatement of the environment actually undertaken or to be undertaken; loss incurred or likely to be incurred by third parties in connection with such damage; and damage, costs, or loss of a similar nature to those identified in this subparagraph (d); (e) Costs or expenses relating to the raising, removal, recovery, destruction or rendering harmless of a ship which is sunk, wrecked, stranded or abandoned, including anything that is or has been on board such ship, and costs or expenses relating to the preservation of an abandoned ship and maintenance of its crew; (f) Any agreement relating to the use of a ship, including bareboat charter, charter by demise, time charter, voyage charter or contract of affreightment, and maritime contract of carriage, whether of goods or people, including bills of lading; (g) General average; (h) Towage; (i) Pilotage; (j) Goods, materials, provisions, bunkers, equipment (including containers) supplied or services rendered to the ship for its operation, management, preservation, or maintenance; (k) Construction, reconstruction, repair, converting or equipping of the ship; (l) Port, canal, dock, harbor and other waterway dues and charges; (m) Wages and other sums due to the master, officers and other members of the ship's complement who are not Filipino citizens, in respect of their employment on the ship, including costs of repatriation and social insurance contributions payable on their behalf, initiated while the vessel is within Philippine jurisdiction; (n) Disbursements incurred on behalf of the ship or its owners; (o) Insurance premiums (including mutual insurance calls) in respect of the ship, payable by or on behalf of the shipowner or demise charterer; (p) Any commissions, brokerages or agency fees payable in respect of the ship by or on behalf of the shipowner or demise charterer; (q) Any dispute as to ownership or possession of the ship; (r) Any dispute between co-owners of the ship as to the employment or earnings of the ship; (s) A mortgage or a "hypothèque" or a charge of the same nature on the ship; (t) Any dispute arising out of a contract for the sale of the ship; and (u) Enforcement of foreign judgments and arbitral awards in relation to claims, or judgments and awards rendered under the Admiralty and maritime jurisdiction of a foreign court or arbitral tribunal, and subject to the procedures under Rule 39, Section 48 of the Rules of Court and the requirements of Republic Act No. 9285. Provided, that such action, demand or claim shall be filed with the designated first- or second-level Admiralty courts, as the case may be, in accordance with their jurisdictional thresholds, as may be determined by law. In case the action, demand or claim is within the jurisdictional threshold of first-level courts, the case shall be filed before the first-level court and the Rules of Procedure for Admiralty Cases shall apply.

Section 6

Actions in rem may be filed, even if the ship may be located outside the Philippines, in the following cases: (a) Any claim to the possession or ownership of a ship or any share therein; (b) Any question arising between the co-owners of a ship as to possession, employment, or earnings of that ship, including the settlement of any account outstanding and unsettled between the parties in relation to the ship; (c) Any claim in respect of a mortgage of or charge on a ship or any share therein; (d) Any claim for the attachment, forfeiture or condemnation of a ship, or for the restoration of a ship; (e) Any claim on the basis of a maritime lien or other charge on any ship, or other property for the amount claimed; and (f) Enforcement of an arbitral award or foreign judgment against a ship.

Section 7

At the plaintiff's option, an action in personam may also be filed where the defendant has his or her habitual residence or place of business in the Philippines, in the following instances: (a) Any claim for damage done/inflicted by a ship; (b) Any claim for damage received/sustained by a ship; (c) Any claim for loss of life or personal injury sustained as a result of: i. any defect in a ship or in her equipment; and ii. the wrongful acts or omissions of the owners, charterers, or persons in possession or control of a ship, or the master or crew thereof, or any other person for whose wrongful acts or omissions the owners, charterers, or persons in possession or control of a ship are responsible, provided, that said acts or omissions are conducted in the navigation or management of the ship, in the loading, carriage or discharge of goods on, in or from the ship, or in the embarkation, carriage, or disembarkation of persons on, in or from the ship. (d) Any claim for loss or damage to goods carried in a ship; (e) Any claim arising out of any agreement relating to the carriage of goods in a ship or to the use or hire of a ship; (f) Any claim in the nature of salvage of a ship, including claims for services rendered in saving life from a ship or any aircraft or in preserving cargo, apparel or wreck as are authorized to be made in connection with a ship or aircraft; (g) Any claim in the nature of towage in respect of a ship; (h) Any claim in the nature of pilotage in respect of a ship; (i) Any claim in respect of goods or materials supplied to a ship for her operation or maintenance; (j) Any claim in respect of the construction, repair or equipment of a ship of dock charges or dues; (k) Any claim by a master, shipper, charterer, or agent in respect of disbursements made on account of a ship; (l) Any claim arising out of an act which is or is claimed to be a general average act; (m) Any claim arising out of bottomry; and (n) Any claim arising out of a charter party of whatever kind.

Section 1

The pleadings and motions that may be filed are the complaint, third-party complaint, answer which may include compulsory counterclaims and cross-claims, answer to counterclaims and cross-claims, motion for intervention, and motion to avail of discovery procedures.

Section 2

The following pleadings or motions shall not be allowed: (a) Motion to dismiss the complaint; (b) Motion for bill of particulars; (c) Motion for extension of time to file pleadings, affidavits or any other paper; (d) Motion to declare the defendant in default; (e) Dilatory motion for postponement; (f) Motion for new trial; (g) Petition for certiorari, mandamus, or prohibition against any interlocutory order issued by the court; and (h) Petition for relief from judgment.

Section 3

The verified complaint shall state or contain: (a) A statement that it is a case in Admiralty jurisdiction; (b) The names, addresses, and other relevant personal or juridical circumstances of the parties; (c) All facts material and relevant to plaintiff's cause or causes of action; (d) The law, rule, or regulation relied upon, violated, or sought to be enforced; (e) Specification of all evidence supporting the cause of action, such as affidavits of witnesses, authenticated documentary evidence which must be attached to the complaint, and object evidence. The affidavits shall be in question and answer form and shall comply with the rules on judicial affidavits. All other supporting documents and evidence will comply with the rules on admissibility of evidence. Official documents from a foreign jurisdiction shall be considered admissible when duly authenticated in accordance with The Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents, otherwise known as the Apostille Convention. All parties are required to disclose and include all relevant documentary evidence, even if such may appear to contain admissions against interest; (f) The reliefs prayed for. The verified complaint may also include a prayer for the immediate issuance ex parte of a Warrant of Arrest of a Vessel (WAVe), Cargo, or Freight. In such cases, it shall also comply with the requirements under Rule 6 herein; and (g) A certification against forum shopping.

Section 4

Any real party in interest, including the government and juridical entities authorized by law, may file a civil action in Admiralty jurisdiction.

Section 5

A complaint in Admiralty jurisdiction may be filed against a ship, or against specific cargo or freight, or against the owners, charterers, other persons in possession or control of a ship and/or cargo, or other relevant persons.

Section 6

Upon the filing of the complaint, the plaintiff is required to furnish a copy thereof to the Ship's Register with which the ship is registered or, in the absence thereof, the consulate of the ship's flag. Proof of service upon the Ship's Register or appropriate consulate shall be attached to the complaint.

Section 7

In the case of ships of Philippine registry, service shall be made by sending a copy of the complaint and all its attachments personally or by personal courier upon the duly-designated receiving officer of the Maritime Industry Authority. In the case of ships flying the flag of a foreign country, service shall be made by sending a copy of the complaint and all its attachments with the consulate of the ship's flag State; provided, that if the foreign Ship's Registry allows service through electronic means of court processes, legal notices, pleadings and documents, the party may make use of such means subject to proof of such service.

Section 8

The complaint shall be referred to the Admiralty court immediately upon filing if there is only one (1) designated branch in a multiple-sala court. If there are two (2) or more designated branches, the Clerk of Court shall immediately cause an electronic or special raffle, as the case may be, among the Admiralty courts on the same day the complaint is filed.

Section 9

Upon referral of the complaint by the executive judge, the Admiralty court to which it was referred or raffled, as the case may be, may motu proprio dismiss the case outright on any of the grounds apparent therefrom for the dismissal of a civil action. If no ground for dismissal is found, the Admiralty court shall forthwith issue the writ or summons which shall state that the Rules of Procedure for Admiralty Cases shall apply.

Section 10

Writs, summons, orders and other court processes may be served by the sheriff, his deputy or other proper officers of the court. The writs or summons shall be served immediately on the defendant upon order of the court, together with a copy of an order informing all parties that they have ten (10) calendar days within which to appear in court and file an answer. Writs or summons shall be served in accordance with the Rules of Court, except as provided under Section 11 hereof.

Section 11

(a) In an action in rem, a Writ of Summons in Action In Rem must be served on the ship against which the action is brought, except if the ship has been sold by the Sheriff upon lawful order of a court, in which case, a sealed copy of the writ must be filed with the Ship's Registry and the same shall be deemed to have been served on the day on which the copy was filed. Such service shall be effected against a ship, cargo, or freight as follows: i. by serving the same personally upon the ship's captain or master on board the ship while it is within the jurisdiction of the Philippines; ii. by affixing a copy of the writ for a short time on any mast of the ship or on the outside of any suitable part of the vessel's superstructure, visible to all who may board or enter the vessel; iii. by affixing a copy of the writ in a sheltered, conspicuous part of the vessel visible to the person in actual possession and control thereof, such as the windows in front of the wheelhouse or bridge of the vessel; and iv. in the case of cargo or freight in the custody of a person, by leaving the writ with such person. (b) In an action in personam, summons shall be served in accordance with the Rules of Court insofar as they are not incompatible with these Rules. In case the plaintiff files an action both in rem and in personam, that is, against the vessel and its owner, charterer, or other person in possession and control thereof, both the Writ of Summons in Action In Rem and ordinary summons shall be issued and served separately.

Section 12

Within ten (10) calendar days from receipt of the writ or summons, the defendant shall file a verified answer to the complaint, third-party complaint, counterclaim, cross-claim, or intervention, as the case may be, and serve a copy thereof upon the plaintiff. Affirmative and special defenses not pleaded shall be deemed waived, except for lack of jurisdiction.

Section 13

If the defendant fails to file an answer to the complaint within the period provided, the court motu proprio, or on motion of the plaintiff as may be warranted by the facts alleged in the complaint and limited to the reliefs prayed for, shall declare the defendant in default and render judgment based on the complaint and the evidence attached thereto.

Section 1

Within two (2) calendar days from the filing of the last responsive pleading, the Branch Clerk of Court shall issue a notice of pre-trial to be held not later than twenty (20) calendar days from the filing of the last pleading.

Section 2

At least three (3) calendar days before the pre-trial, the parties shall submit pre-trial briefs containing the following: (a) Statement of willingness to enter into an amicable settlement indicating the desired terms thereof; (b) Summary of admitted facts and proposed stipulations of facts; (c) Legal or factual issues to be tried and resolved. For each factual issue, the parties shall state all evidence to support their positions thereon. For each legal issue, parties shall state the applicable law and jurisprudence supporting their respective positions thereon; (d) Affidavits of witnesses, documentary evidence, and, if necessary, object evidence in support of the answers and replies, which shall be attached to the brief; and (e) Number and names of witnesses, and the substance of their affidavits. Failure to comply with the required contents of a pre-trial brief may be a ground for contempt. Failure to file the pre-trial brief shall have the same effect as failure to appear at the pre-trial.

Section 3

Not later than twenty (20) calendar days after the last pleading has been filed, pre-trial shall be held. The judge shall put the parties and their counsels under oath. A record of the pre-trial shall be issued by the court immediately upon termination thereof, stating: (a) Whether the parties have arrived at an amicable settlement; (b) Stipulations or admissions of the parties, including documents admitted without need for further authentication; (c) Statement of specific facts which remain controverted, if any; (d) Schedule for examination of witnesses; and (e) Such other matters as may facilitate the disposition of the case. All judicial affidavits and documentary evidence shall be examined by the parties for accuracy and authenticity, and referred to and marked as described in the complaint and answer on record with the court and considered to be offered in evidence to prove the claims stated therein. The court shall not admit as evidence, for any purpose, any judicial affidavits or documents which have not been examined and marked during the pre-trial. Unless the parties have reached an amicable settlement in the meantime, failure of either of the parties to appear in the pre-trial shall be a cause of dismissal of their respective claims or counter-claims, and the appearing party shall be entitled to judgment on his or her claims as warranted by the evidence submitted, but in no case greater than that stated in the complaint or answer. All cross-claims shall be dismissed. Should the parties reach an amicable settlement, a copy of the agreement setting forth the terms of such settlement shall be submitted to the court at the pre-trial, and the court shall render judgment based on the terms and conditions thereof. The judgment of the court upon the pre-trial, on account of non-appearance or amicable settlement, shall be final and binding upon the parties and constitute res judicata upon their respective claims and counter-claims.

Section 4

After the pre-trial, if there are no more controverted facts or genuine issues pending, the court shall, without prejudice to a party moving for judgment on the pleadings under Rule 34 of the Rules of Court or summary judgment under Rule 35, motu proprio submit the case for judgment on the pleadings or summary judgment without need of position papers or memoranda. The ruling of the court to submit the case for summary judgment or judgment on the pleadings shall not be subject to appeal or certiorari. In such cases, judgment shall be rendered within fifteen (15) calendar days from termination of the pre-trial.

Section 5

If there are still facts to be controverted or issues to be resolved, the case may be immediately referred to mediation, which proceeding shall not exceed a period of thirty (30) calendar days, without further extension. In case of an amicable settlement, the compromise agreement shall be immediately submitted to the court, which shall render a decision based on the compromise agreement within fifteen (15) calendar days. If mediation fails, the assigned mediator shall immediately submit his report thereon, and the court shall conduct trial without referral to Judicial Dispute Resolution.

Section 1

Within ten (10) calendar days from date of pre-trial, if the case is not referred to mediation, or within thirty (30) calendar days from date of pre-trial if the case is referred to mediation and the same fails, the court shall hold trial for purposes of cross-examination of the parties' witnesses based on their judicial affidavits and documents annexed thereto submitted with the complaint or answer. No additional affidavits or evidence which were not previously agreed upon in the pre-trial shall be allowed.

Section 2

The court shall conduct continuous trial which shall not exceed two (2) months from the date of the initial trial. The two-month period may be extended by the court in cases involving complex factual and legal issues which necessarily require additional time for their determination, but in no case shall the extension exceed one (1) month.

Section 3

The court shall strictly adhere to the rule that a witness has to be fully examined in one (1) day, subject to the court's discretion of extending the examination for justifiable reason. After the presentation of the last witness, only oral offer of evidence shall be allowed, and the opposing party shall immediately and orally interpose his or her objections. The judge shall forthwith rule on the offer of evidence in open court. The parties may agree that witnesses may be examined via videoconferencing in accordance with existing rules of the Supreme Court.

Section 4

After the last party has rested his or her case, the court shall issue an order submitting the case for decision. The court may, within ten (10) days from submission of the case for decision, require the parties to submit position papers within a non-extendible period of ten (10) days from notice.

Section 5

Within a non-extendible period of ten (10) calendar days from submission of the case for decision, the court may require the simultaneous submission, in written and/or electronic form, of the parties' position papers based on the affidavits and evidence already submitted and on record. Position papers shall state the arguments of fact and law upon which the party seeks a favorable decision and shall substantially follow the form of a draft decision.

Section 6

Within fifteen (15) calendar days from the expiration of the period for filing of position papers, with or without position papers, the court shall render judgment.

Section 1

Where a ship against which an action in rem is brought is under arrest, a person who has a legal interest in the ship, cargo, or freight, or in the success of either of the parties, or an interest against both, or is so situated as to be adversely affected by a distribution or other disposition of the ship, but who is not a party to the action may, with leave of court, file a motion to intervene in the action at any time before submission of the case for decision by the court. A copy of the pleading in intervention shall be attached to the Motion for Intervention with leave of court. A complaint-in-intervention must be supported by judicial affidavits and other supporting evidence, showing the interest of the intervenor in the ship within the court's custody. The court may consider whether or not the intervention will unduly delay or prejudice the adjudication of the rights of the original parties, and whether or not the intervenor's rights may be fully protected in a separate proceeding. The time for filing responsive pleadings in intervention shall conform with the time limits in these Rules.

Section 2

A person granted leave to intervene must enter an appearance in the action within the period specified by the court, but in no case after the case has been submitted for decision.

Section 1

In an action in rem in Admiralty jurisdiction as defined in Part 1, Rule 1, Section 6 of these Rules, the plaintiff or defendant, as the case may be, may upon commencement of an action in rem, apply for a Warrant of Arrest of Vessel, Cargo, or Freight applicable against the vessel or ship, cargo, or freight subject of the action or counterclaim. The Warrant of Arrest may be issued together with the Writ of Summons in Action In Rem. The Warrant of Arrest directs the Sheriff or a duly authorized person to arrest a specific vessel or ship, cargo, or freight while it is within the jurisdiction of a Philippine port, and detain the same within the port limits until further orders from the court. The same shall be valid for twelve (12) months from the date of its issuance.

Section 2

A Warrant of Arrest shall not be issued unless the party applying for the warrant or his or her duly authorized agent has filed an affidavit stating the following: (a) In actions in rem: i. The name, address and occupation of the applicant for the Warrant of Arrest of Vessel, Cargo, or Freight; ii. The nature of the claim or counterclaim which has not been satisfied in respect of which the warrant is required, and if it arises in connection with a ship, the name of the ship; and iii. The nature of the property to be arrested and, if the property is a ship, the name of the ship and the port of her registry. (b) In actions both in rem and in personam: i. The name of the person who would be liable on the claim in an action in personam, should the action be both in rem and in personam (the "relevant person"); ii. That the relevant person was the owner or charterer of, or person in possession or control of the ship, cargo, or freight in connection with which the claim arose; iii. That at the time of the issuance of the writ, the relevant person was either the beneficial owner of all the shares in the ship, cargo, or freight in respect of which the warrant is required, or the charterer of a ship under a charter by demise; and iv. In the case of a claim for possession of a ship or for wages, the nationality of the ship in respect of which the warrant is required, and that the copy of the writ and complaint have been sent to the Registry or consulate should the ship be of foreign nationality.

Section 3

Upon the commencement of the action, the plaintiff or defendant, as the case may be, may apply for a Warrant of Arrest for the arrest of the ship, cargo, or freight against which the action or any counterclaim in the action may be brought. No Warrant of Arrest shall be granted unless the arresting party has given a bond or security, including a corporate surety from a surety company accredited by the Supreme Court, executed in favor of the Admiralty court in the amount of thirty percent (30%) of the claim, but in no case less than five million pesos (P5,000,000.00), conditioned that the arresting party will pay all the costs which may be adjudged to the adverse party and all damages which he or she may sustain by reason of the arrest, if the court shall finally adjudge that the applicant was not entitled thereto. A Warrant of Arrest shall not be issued without prior notice to the owner, charterer, master, or person in actual possession and control of the property at the time of application, and after due hearing. However, a plaintiff may request the issuance of a Warrant of Arrest of Vessel, Cargo or Freight ex parte in cases of extreme urgency where the complainant may suffer irreparable injury or gross inconvenience on account of the mobility or transportability of the ship, or the cargo, or the person in custody of the freight, against which the action in rem is directed. In such case, the court may issue ex parte a warrant which shall immediately be executed pursuant to Section 5 hereof.

Section 4

The arresting party shall, in addition, pay all port fees, charges and expenses incurred in the preservation and maintenance of the ship or cargo during its arrest, until its release or sale.

Section 5

A Warrant of Arrest of Vessel, Cargo, or Freight must be served on the ship, cargo, or freight against which it is issued. Service of a Warrant of Arrest shall be effected in the same manner as service of a Writ of Summons in Action In Rem specified in Rule 2, Section 11 (a) hereof. The warrant must also be served upon the master of the vessel or person in custody of the cargo or freight. The warrant of arrest shall likewise be served on the Ship Registry or consulate of the flag State of the ship, and annotated on the ship's certificate of registration. While a ship is under arrest, its cargo may still be discharged. A court-designated Sheriff serving a warrant of arrest may summon officers from the Philippine Coast Guard, Bureau of Customs, Philippine Ports Authority, or pertinent port authority, or any other law enforcement agency for assistance in enforcing the warrant. Officers so summoned shall be considered as duly deputized and shall assist in effecting the arrest when they can render such assistance without detriment to their safety. The Sheriff shall make a return on the Warrant of Arrest of Vessel, Cargo or Freight in accordance with the Rules of Court.

Section 6

The Sheriff may at any time request the court to provide directions with respect to the property under arrest, and shall give notice thereof to any or all of the following persons who, in relation to the property, have: (a) Caused a warrant for the arrest of the property to be executed by the Sheriff; (b) Entered appearance in any action in which the property is under arrest; or (c) Intervened in any action in which the property is under arrest.

Section 7

A bail bond or security, including a corporate surety from a surety company accredited by the Supreme Court, in sufficient amount to answer for the arresting party's claims, may be given on behalf of a party to an action in rem to secure the release of the ship, cargo, or freight from arrest. The bail bond shall be filed with the court and notice thereon served on the adverse party. Upon receipt of the bail bond and finding that it is in good order, the court shall forthwith order the lifting of the warrant of arrest. In case a warrant of arrest is issued against the cargo or freight only, the amount of the bail bond shall be based on the value of such cargo or freight subject of the arresting party's claim.

Section 8

The judge shall report to the Supreme Court, through the Office of the Court Administrator, every action taken on all Warrants of Arrest of Vessel, Cargo, or Freight, within fifteen (15) calendar days from the action taken.

Section 1

After finality of judgment, a ship or cargo which has been subject of a warrant of arrest, and has remained in custodia legis due to failure to file the appropriate bail bond, may be sold at public auction as directed by the court to satisfy the maritime claim upon motion of the prevailing party.

Section 2

Upon motion of the prevailing party for the sale of the arrested ship or cargo, the court may, within five (5) calendar days, cause the appointment of one or more appraiser/s who shall assign a value of the ship or cargo, and assist the Sheriff in the sale of the property. Appraisers shall be appointed taking into account their specialized knowledge and expertise in the classification and valuation of ships, and familiarity with ships and ship management or operations. Appraisers shall be entitled to compensation in the same manner as Sheriffs of the court, out of the proceeds of the sale.

Section 3

In case a judgment is rendered and there are numerous prevailing parties in an action in rem, they may file a motion before the court to determine the priority of the claims against the proceeds of the sale of the ship.

Section 1

In a limitation action, the plaintiff, who may be a ship-owner, charterer, or other person in control or possession of a ship, seeks to limit his or her liability to the full amount of a limitation fund constituted for the purpose of satisfying claims in respect of a marine casualty involving the ship, which claims have not been otherwise settled by marine insurance or other means.

Section 2

A plaintiff may initiate a limitation action only in the following cases: (a) collisions; (b) injuries to a third party; and (c) acts of the captain or master of a ship. Provided, that the plaintiff abandons the vessel with all her appurtenances and equipment and freightage earned, or part thereof belonging to such plaintiff, during the last voyage. Limitation action is not available in the following cases: (a) injury or death to a passenger is due either to the fault of the shipowner, charterer, or other person in possession or control of the vessel; (b) injury or death of a passenger due to the concurring fault of said person and the captain or master of the vessel; (c) the vessel is insured and the injury or damage to persons or property, or death of a passenger, is covered by a separate insurance; and (d) workmen's compensation claims.

Section 3

The plaintiff may file a limitation action by a verified complaint, impleading any and all known defendants any time after a marine casualty that causes damage, injury, or death, and subsequent abandonment of the vessel, by notarial act filed with the Ship Registry, or total loss thereof in which case abandonment by notarial act is no longer necessary. The complaint must be supported by judicial affidavit/s stating the plaintiff's cause of action, the names of the known defendants, and the addresses of each of those persons if known to the plaintiff. The complaint shall likewise be directed against any and all defendants whose names and personal circumstances may be unknown but are described generally and identifiable as a certain class, such as ship chandlers, cargo-owners, or passengers of a vessel at a specific time and place. The plaintiff shall disclose any and all contracts with third parties which may form the basis of liability relating to the ship involved in the action. Separate summons shall be directly sent to the defendants specifically named in the complaint, at their residential or business address/es known to the plaintiff. Notice of and summons to the limitation action against all other defendants, whether or not named in the complaint, shall be published in at least two (2) newspapers of general circulation, stating the title and purpose of the action, and the court where the same is pending. The summons shall state a time and place for appearance of the defendants before the court at the hearing, which in no case shall be less than one (1) month from the date of filing of the complaint. No pre-trial is necessary, given the nature of the action.

Section 4

Upon receipt of notice and summons and at any time prior to the hearing, a defendant may enter an appearance as such by written notice of appearance, accompanied by a judicial affidavit setting forth the basis and substance of the claim as defendant. Where the appearing defendant was not previously named specifically by the plaintiff and was apprised of the complaint only through published notice and summons, the defendant shall further state that he or she is submitting to the jurisdiction of the court, and provide the necessary address/es for purposes of service of all subsequent orders and processes of the court.

Section 5

At the hearing, the plaintiff shall submit a judicial affidavit setting forth his or her liability, the relevant facts and legal basis of his or her claim to a limitation thereof, the total amount of the limitation fund to be constituted and payments offered to be allocated to those whom the plaintiff admits to be liable. Appearing defendants shall likewise submit their judicial affidavits setting forth the substance and basis of their respective claims. They may dispute only the plaintiff's right to limit his or her liability; in no case may the defendant dispute the total amount of the limitation fund. If it appears that the defendant does not have sufficient information to enable the court to decide whether or not to dispute the plaintiff's right to limit his or her liability, the court shall give such directions as may be appropriate to enable the defendant to obtain the necessary information and adjourn the hearing for that purpose. Non-appearance at the hearing despite notice, by a defendant specifically named in the complaint and to whom summons had been served, shall be deemed a waiver of the right to dispute the plaintiff's right to limit his or her liability. After reception of the plaintiffs' and defendants' respective evidence, the court shall conclude the hearing and submit the case for decision within fifteen (15) calendar days. The court shall decide whether or not the plaintiff is entitled to a limitation of liability, whether or not to constitute a limitation fund, and, if so, the terms and conditions for disbursement thereof.

Section 6

The plaintiff may, upon order of the court, constitute a limitation fund by making a deposit to the court, or by producing a letter of undertaking from a Protection and Indemnity Club acceptable to the court. The fund may be constituted during the hearing, but not later than thirty (30) calendar days after the conclusion of the hearing. Failure to constitute a sufficient limitation fund to satisfy claims within the said period shall be deemed a withdrawal of the action and warrants dismissal thereof. No amount shall be paid out of the limitation fund except upon the order of the court.

Section 7

If it appears from the hearing that the plaintiff has the right to his or her limit liability, the court shall, within fifteen (15) calendar days after due consideration of the plaintiffs' and defendants' claims, issue an order limiting the plaintiff's liability and direct the defendants, and any other persons who may have claims, to file their respective claims against the limitation fund. The order shall be served upon the plaintiff and the appearing defendants, and shall operate to protect the plaintiff with respect of claims by the appearing defendants, or persons claiming through or under them. The order shall also fix a time and place for the acceptance of claims filed by persons with claims against the plaintiff with respect of the casualty to which the action relates, but who were not properly summoned, or were unknown defendants, and who did not enter an appearance prior to the issuance of the order.

Section 8

The court shall order the plaintiff to cause the publication of the order constituting the limitation fund in two (2) newspapers of general circulation, identifying the action, the casualty and the relation of the plaintiff thereto (whether as owner of a ship involved in the casualty or otherwise); stating that the order has been issued and specifying the amounts fixed thereby as the limit of the plaintiff's liability and the time allowed thereby for the filing of claims. In no case shall claims be filed and accepted more than six (6) months from publication thereof.

Section 9

Claims filed within the time specified in the order of the court shall be duly recorded by the plaintiff or his or her duly authorized representative, and reported to the court at the end of the period for entering of appearances and making of claims, with proposals for their satisfaction through payment from the limitation fund. The court, upon review of the report and proposal for satisfaction, and finding the same to be in due and proper form, and within fifteen (15) calendar days from receipt, shall order payment of the claims under such terms and conditions as may be appropriate.

Section 10

Upon final payment of all claims of all defendants or claimants, the plaintiff and the Sheriff shall make a report to the court, setting forth the complete list of appearing defendants with their respective claims, the payments made, and proof of receipt of such payments. The court shall thereafter issue an order declaring the limitation action closed. Any amounts remaining after payment of the claims shall be released and returned, upon motion, to the plaintiff or his or her duly authorized representative. The closure of the limitation action shall become final and executory, upon the expiration of fifteen (15) calendar days from receipt by the plaintiff/s and the defendant/s of the order of closure. Such order shall be final and unappealable, and forever bar any and all claims against the plaintiff/s in respect of the casualty subject of the action. Closure of a limitation action, however, does not bar remedies against actions in fraud of creditors.

Article 1

(1) This convention shall apply to all international transportation of persons, baggage, or goods performed by aircraft for hire. It shall apply equally to gratuitous transportation by aircraft performed by an air transportation enterprise. (2) For the purposes of this convention the expression "international transportation" shall mean any transportation in which, according to the contract made by the parties, the place of departure and the place of destination, whether or not there be a break in the transportation or a transshipment, are situated either within the territories of two High Contracting Parties, or within the territory of a single High Contracting Party, if there is an agreed stopping place within a territory subject to the sovereignty, suzerainty, mandate or authority of another power, even though that power is not a party to this convention. Transportation without such an agreed stopping place between territories subject to the sovereignty, suzerainty, mandate, or authority of the same High Contracting Party shall not be deemed to be international for the purposes of this convention. (3) Transportation to be performed by several successive air carriers shall be deemed, for the purposes of this convention, to be one undivided transportation, if it has been regarded by the parties as a single operation, whether it has been agreed upon under the form of a single contract or of a series of contracts, and it shall not lose its international character merely because one contract or a series of contracts is to be performed entirely within a territory subject to the sovereignty, suzerainty, mandate, or authority of the same High Contracting Party.

Article 2

(1) This convention shall apply to transportation performed by the state or by legal entities constituted under public law provided it falls within the conditions laid down in Article 1. 2. This convention shall not apply to transportation performed under the terms of any international postal convention. SECTION I Passenger Ticket

Article 3

(1) For the transportation of passengers the carrier must deliver a passenger ticket which shall contain the following particulars: (a) The place and date of issue; (b) The place of departure and of destination; (c) The agreed stopping places, provided that the carrier may reserve the right to alter the stopping places in case of necessity, and that if he exercises that right, the alteration shall not have the effect of depriving the transportation of its international character; (d) The name and address of the carrier or carriers; (e) A statement that the transportation is subject to the rules relating to liability established by this convention. (2) The absence, irregularity, or loss of the passenger ticket shall not affect the existence or the validity of the contract of transportation, which shall none the less be subject to the rules of this convention. Nevertheless, if the carrier accepts a passenger without a passenger ticket having been delivered he shall not be entitled to avail himself of those provisions of this convention which exclude or limit his liability. SECTION II Baggage Check

Article 4

(1) For the transportation of baggage, other than small personal objects of which the passenger takes charge himself, the carrier must deliver a baggage check. (2) The baggage check shall be made out in duplicate, one part for the passenger and the other part for the carrier. (3) The baggage check shall contain the following particulars: (a) The place and date of issue; (b) The place of departure and of destination; (c) The name and address of the carrier or carriers; (d) The number of the passenger ticket; (e) A statement that delivery of the baggage will be made to the bearer of the baggage check; (f) The number and weight of the packages; (g) The amount of the value declared in accordance with article 22 (2); (h) A statement that the transportation is subject to the rules relating to liability established by this convention. (4) The absence, irregularity, or loss of the baggage check shall not affect the existence or the validity of the contract of transportation which shall nonetheless be subject to the rules of this convention. Nevertheless, if the carrier accepts baggage without a baggage check having been delivered, or if the baggage check does not contain the particulars set out at (d), (f), and (h) above, the carrier shall not be entitled to avail himself of those provisions of the convention which exclude or limit his ability. SECTION III Air Waybill

Article 5

(1) Every carrier of goods has the right to require the consignor to make out and hand over to him a document called an "air waybill"; every consignor has the right to require the carrier to accept this document. (2) The absence, irregularity, or loss of this document shall not affect the existence or the validity of the contract of transportation which shall, subject to the provisions of Article 9, be none the less governed by the rules of this convention.

Article 6

(1) The air waybill shall be made out by the consignor in three original parts and be handed over with the goods. (2) The first part shall be marked "for the carrier", and shall be signed by the consignor. The second part shall be marked "for the consignee"; it shall be signed by the consignor and by the carrier and shall accompany the goods. The third part shall be signed by the carrier and handed by him to the consignor after the goods have been accepted. (3) The carrier shall sign on acceptance of the goods. (4) The signature of the carrier may be stamped; that of the consignor may be printed or stamped. (5) If, at the request of the consignor, the carrier makes out the air waybill, he shall be deemed, subject to proof to the contrary, to have done so on behalf of the consignor.

Article 7

The carrier of goods has the right to require the consignor to make out separate waybills when there is more than one package.

Article 8

The air waybill shall contain the following particulars: (a) The place and date of its execution; (b) The place of departure and of destination; (c) The agreed stopping places, provided that the carrier may reserve the right to alter the stopping places in case of necessity, and that if he exercises that right the alteration shall not have the effect of depriving the transportation of its international character; (d) The name and address of the consignor; (e) The name and address of the first carrier; (f) The name and address of the consignee, if the case so requires; (g) The nature of the goods; (h) The number of packages, the method of packing, and the particular marks or numbers upon them; (i) The weight, the quantity, the volume, or dimensions of the goods; (j) The apparent condition of the goods and of the packing; (k) The freight, if it has been agreed upon, the date and place of payment, and the person who is to pay it; (l) If the goods are sent for payment on delivery, the price of the goods, and, if the case so requires, the amount of the expenses incurred; (m) The amount of the value declared in accordance with Article 22 (2). (n) The number of parts of the air waybill; (o) The documents handed to the carrier to accompany the air waybill; (p) The time fixed for the completion of the transportation and a brief note of the route to be followed, if these matters have been agreed upon; (q) A statement that the transportation is subject to the rules relating to liability established by this convention.

Article 9

If the carrier accepts goods without an air waybill having been made out, or if the air waybill does not contain all the particulars set out in Article 8 (a) to (i), inclusive, and (q), the carrier shall not be entitled to avail himself of the provisions of this convention which exclude or limit his liability.

Article 10

(1) The consignor shall be responsible for the correctness of the particulars and statements relating to the goods which he inserts in the air waybill. (2) The consignor shall be liable for all damages suffered by the carrier or any other person by reason of the irregularity, incorrectness or incompleteness of the said particulars and statements.

Article 11

(1) The air waybill shall be prima facie evidence of the conclusion of the contract, of the receipt of the goods and of the conditions of transportation. (2) The statements in the air waybill relating to the weight, dimensions, and packing of the goods, as well as those relating to the number of packages, shall be prima facie evidence of the facts stated; those relating to the quantity, volume and condition of the goods shall not constitute evidence against the carrier except so far as they both have been, and are stated in the air waybill to have been, checked by him in the presence of the consignor, or relate to the apparent condition of the goods.

Article 12

(1) Subject to his liability to carry out all his obligations under the contract of transportation, the consignor shall have the right to dispose of the goods by withdrawing them at the airport of departure or destination, or by stopping them in the course of the journey on any landing, or by calling for them to be delivered at the place of destination, or in the course of the journey to a person other than the consignee named in the air waybill, or by requiring them to be returned to the airport of departure. He must not exercise this right of disposition in such a way as to prejudice the carrier or other consignors, and he must repay any expenses occasioned by the exercise of this right. (2) If it is impossible to carry out the orders of the consignor the carrier must so inform him forthwith. (3) If the carrier obeys the orders of the consignor for the disposition of the goods without requiring the production of the part of the air waybill delivered to the latter, he will be liable, without prejudice to his right of recovery from the consignor, for any damage which may be caused thereby to any person who is lawfully in possession of that part of the air waybill. (4) The right conferred on the consignor shall cease at the moment when that of the consignee begins in accordance with Article 13, below. Nevertheless, if the consignee declines to accept the waybill or the goods, or if he cannot be communicated with, the consignor shall resume his right of disposition.

Article 13

(1) Except in the circumstances set out in the preceding article, the consignee shall be entitled, on arrival of the goods at the place of destination, to require the carrier to hand over to him the air waybill and to deliver the goods to him, on payment of the charges due and on complying with the conditions of transportation set out in the air waybill. (2) Unless it is otherwise agreed, it shall be the duty of the carrier to give notice to the consignee as soon as the goods arrive. (3) If the carrier admits the loss of the goods, or if the goods have not arrived at the expiration of seven days after the date on which they ought to have arrived, the consignee shall be entitled to put into force against the carrier the rights which flow from the contract of transportation.

Article 14

The consignor and the consignee can respectively enforce all the rights given them by Articles 12 and 13, each in his own name, whether he is acting in his own interest or in the interest of another, provided that he carries out the obligations imposed by the contract.

Article 15

(1) Articles 12, 13, and 14 shall not affect either the relations of the consignor and the consignee with each other or the relations of third parties whose rights are derived either from the consignor or from the consignee. (2) The provisions of Article 12, 13, and 14 can only be varied by express provision in the air waybill.

Article 16

(1) The consignor must furnish such information and attach to the air waybill such documents as are necessary to meet the formalities of customs, octroi, or police before the goods can be delivered to the consignee. The consignor shall be liable to the carrier for any damage occasioned by the absence, insufficiency, or irregularity of any such information or documents, unless the damage is due to the fault of the carrier or his agents. (2) The carrier is under no obligation to enquire into the correctness or sufficiency of such information or documents.

Article 17

The carrier shall be liable for damage sustained in the event of the death or wounding of a passenger or any other bodily injury suffered by a passenger, if the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking or disembarking.

Article 18

(1) The carrier shall be liable for damage sustained in the event of the destruction or loss of, or of damage to, any checked baggage or any goods, if the occurrence which caused the damage so sustained took place during the transportation by air. (2) The transportation by air within the meaning of the preceding paragraph shall comprise the period during which the baggage or goods are in charge of the carrier, whether in an airport or on board an aircraft, or, in the case of a landing outside an airport, in any place whatsoever. (3) The period of the transportation by air shall not extend to any transportation by land, by sea, or by river performed outside an airport. If, however, such transportation takes place in the performance of a contract for transportation by air, for the purpose of loading, delivery or transshipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the transportation by air.

Article 19

The carrier shall be liable for damage occasioned by delay in the transportation by air of passengers, baggage, or goods.

Article 20

(1) The carrier shall not be liable if he proves that he and his agents have taken all necessary measures to avoid the damage or that it was impossible for him or them to take such measures. (2) In the transportation of goods and baggage the carrier shall not be liable if he proves that the damage was occasioned by an error in piloting, in the handling of the aircraft, or in navigation and that, in all other respects, he and his agents have taken all necessary measures to avoid the damage.

Article 21

If the carrier proves that the damage was caused by or contributed to by the negligence of the injured person the court may, in accordance with the provisions of its own law, exonerate the carrier wholly or partly from his liability.

Article 22

(1) In the transportation of passengers the liability of the carrier for each passenger shall be limited to the sum of 125,000 francs. Where, in accordance with the law of the court to which the case is submitted, damages may be awarded in the form of periodical payments, the equivalent capital value of the said payments shall not exceed 125,000 francs. Nevertheless, by special contract, the carrier and the passenger may agree to a higher limit of liability. (2) In the transportation of checked baggage and of goods, the liability of the carrier shall be limited to a sum of 250 francs per kilogram, unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of the value at delivery and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless he proves that the sum is greater than the actual value to the consignor at delivery. (3) As regards objects of which the passenger takes charge himself the liability of the carrier shall be limited to 5,000 francs per passenger. (4) The sums mentioned above shall be deemed to refer to the French franc consisting of 65½ milligrams of gold at the standard of fineness of nine hundred thousandths. These sums may be converted into any national currency in round figures.

Article 23

Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down in this convention shall be null and avoid, but the nullity of any such provision shall not involve the nullity of the whole contract, which shall remain subject to the provisions of this convention.

Article 24

(1) In the cases covered by Articles 18 and 19 any action for damages, however founded, can only be brought subject to the conditions and limits set out in this convention. (2) In the cases covered by Article 17 the provisions of the preceding paragraph shall also apply, without prejudice to the questions as to who are the persons who have the right to bring suit and what are their respective rights.

Article 25

(1) The carrier shall not be entitled to avail himself of the provisions of this convention which exclude or limit his liability, if the damage is caused by his wilful misconduct or by such default on his part as, in accordance with the law of the court to which the case is submitted, is considered to be equivalent to wilful misconduct. (2) Similarly the carrier shall not be entitled to avail himself of the said provisions, if the damage is caused under the same circumstances by any agent of the carrier acting within the scope of his employment.

Article 26

(1) Receipt by the person entitled to the delivery of baggage or goods without complaint shall be prima facie evidence that the same have been delivered in good condition and in accordance with the document of transportation. (2) In case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within 3 days from the date of receipt in the case of baggage and 7 days from the date of receipt in the case of goods. In case of delay the complaint must be made at the latest within 14 days from the date on which the baggage or goods have been placed at his disposal. (3) Every complaint must be made in writing-upon the document of transportation or by separate notice in writing dispatched within the times aforesaid. (4) Failing complaint within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on his part.

Article 27

In the case of the death of the person liable, an action for damages lies in accordance with the terms of this convention against those legally representing his estate.

Article 28

(1) An action for damages must be brought, at the option of the plaintiff, in the territory of one of the High Contracting Parties, either before the court of the domicile of the carrier or of his principal place of business or where he has a place of business through which the contract has been made or before the court at the place of destination. (2) Questions of procedure shall be governed by the law of the court to which the case is submitted.

Article 29

(1) The right to damages shall be extinguished if an action is not brought within 2 years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the transportation stopped. (2) The method of calculating the period of limitation shall be determined by the law of the court to which the case is submitted.

Article 30

(1) In the case of transportation to be performed by various successive carriers and falling within the definition set out in the third paragraph of Article 1, each carrier who accepts passengers, baggage or goods shall be subject to the rules set out in this convention, and shall be deemed to be one of the contracting parties to the contract of transportation insofar as the contract deals with that part of the transportation which is performed under his supervision. (2) In the case of transportation of this nature, the passenger or his representative can take action only against the carrier who performed the transportation during which the accident or the delay occurred, save in the case where, by express agreement, the first carrier has assumed liability for the whole journey. (3) As regards baggage or goods, the passenger or consignor shall have a right of action against the first carrier, and the passenger or consignee who is entitled to delivery shall have a right of action against the last carrier, and further, each may take action against the carrier who performed the transportation during which the destruction, loss, damage, or delay took place. These carriers shall be jointly and severally liable to the passenger or to the consignor or consignee.

Article 31

(1) In the case of combined transportation performed partly by air and partly by any other mode of transportation, the provisions of this convention shall apply only to the transportation, by air, provided that the transportation by air falls within the terms of Article 1. (2) Nothing in this convention shall prevent the parties in the case of combined transportation from inserting in the document of air transportation conditions relating to other modes of transportation, provided that the provisions of this convention are observed as regards the transportation by air.

Article 32

Any clause contained in the contract and all special agreements entered into before the damage occurred by which the parties purport to infringe the rules laid down by this convention, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void. Nevertheless for the transportation of goods arbitration clauses shall be allowed, subject to this convention, if the arbitration is to take place within one of the jurisdictions referred to in the first paragraph of article 28.

Article 33

Nothing contained in this convention shall prevent the carrier either from refusing to enter into any contract of transportation or from making regulations which do not conflict with the provisions of this convention.

Article 34

This convention shall not apply to international transportation by air performed by way of experimental trial by air navigation enterprises with the view to the establishment of regular lines of air navigation, nor shall it apply to transportation performed in extraordinary circumstances outside the normal scope of an air carrier's business.

Article 35

The expression "days" when used in this convention means current days, not working days.

Article 36

This convention is drawn up in French in a single copy which shall remain deposited in the archives of the Ministry for Foreign Affairs of Poland and of which one duly certified copy shall be sent by the Polish Government to the Government of each of the High Contracting Parties.

Article 37

(1) This convention shall be ratified. The instruments of ratification shall be deposited in the archives of the Ministry for Foreign Affairs of Poland, which shall give notice of the deposit to the Government of each of the High Contracting Parties. (2) As soon as this convention shall have been ratified by five of the High Contracting Parties it shall come into force as between them on the ninetieth day after the deposit of the fifth ratification. Thereafter it shall come into force between the High Contracting Parties which shall have ratified and the High Contracting Party which deposits its instrument of ratification on the ninetieth day after the deposit. (3) It shall be the duty of the Government of the Republic of Poland to notify the Government of each of the High Contracting Parties of the date on which this convention comes into force as well as the date of the deposit of each ratification.

Article 38

(1) This convention shall, after it has come into force, remain open for adherence by any state. (2) The adherence shall be effected by a notification addressed to the Government of the Republic of Poland, which shall inform the Government of each of the High Contracting Parties thereof. (3) The adherence shall take effect as from the ninetieth day after the notification made to the Government of the Republic of Poland.

Article 39

(1) Any one of the High Contracting Parties may denounce this convention by a notification addressed to the Government of the Republic of Poland, which shall at once inform the Government of each of the High Contracting Parties. (2) Denunciation shall take effect six months after the notification of denunciation, and shall operate only as regards the party which shall have proceeded to denunciation.

Article 40

(1) Any High Contracting Party may, at the time of signature or of deposit of ratification or of adherence, declare that the acceptance which it gives to this convention does not apply to all or any of its colonies, protectorates, territories under mandate, or any other territory subject to its sovereignty or its authority, or any other territory under its suzerainty. (2) Accordingly any High Contracting Party may subsequently adhere separately in the name of all or any of its colonies, protectorates, territories under mandate, or any other territory subject to its sovereignty or to its authority or any other territory under its suzerainty which have been thus excluded by its original declaration. (3) Any High Contracting Party may denounce this Convention, in accordance with its provisions, separately or for all or any of its colonies, protectorates, territories under mandate, or any other territory subject to its sovereignty or to its authority, or any other territory under its suzerainty.

Article 41

Any High Contracting Party shall be entitled not earlier than two years after the coming into force of this convention to call for the assembling of a new international conference in order to consider any improvements which may be made in this convention. To this end it will communicate with the Government of the French Republic which will take the necessary measures to make preparations for such conference. ADDITIONAL PROTOCOL With Reference to Article 2 The High Contracting Parties reserve to themselves the right to declare at the time of ratification or of accession that the first paragraph of Article 2 of this convention shall not apply to international transportation by air performed directly by the state, its colonies, protectorates, or mandated territories, or by any other territory under its sovereignty, suzerainty, or authority. Parties to the Convention as of December 31, 1965: Algeria India Argentina Indonesia Australia 1 Ireland Austria Israel Belgium Italy Brazil Ivory Coast Bulgaria Jamaica Burma Japan Cameroon Kenya Canada 2 People's Democratic Republic of Korea Ceylon Laos People's Republic of China Latvia Congo (Brazzaville) Lebanon Congo (Leopoldville) Liberia Cuba 2 Liechtenstein Cyprus Luxembourg Czechoslovakia Madagascar Dahomey Malawi Denmark Malaysia Ethiopia Mali Finland Malta France Mauritania Gambia Mexico German Democratic Republic Mongolian People's Republic Federal Republic of Germany 3 Morocco Ghana Netherlands 4 Greece New Zealand Guinea Niger Hungary Syrian Arab Republic Iceland Tanzania Nigeria Trinidad and Tobago Norway Tunisia Pakistan 2 Uganda Philippines Union of Soviet Socialist Republics Poland United Arab Republic Portugal United Kingdom 5 Rumania United States 2, 6 Rwanda Upper Volta Senegal Venezuela Sierra Leone Vietnam Somali Republic Western Samoa South Africa Yugoslavia Spain Zambia Sweden Switzerland Footnotes Including Papua, Norfolk Islands and the trust territories of New Guinea and Nauru. With reservation. Including Land Berlin. Including Surinam and Curacao. Including Aden and Protectorate of South Arabia, Antigua, Ascencion Islands, Bahamas, Barbados, Basutoland, Bechuanaland, Bermuda, British Guiana, British Honduras British Solomon Islands, Brunei, Caicos, Caymen Islands, Channel Islands, Dominica, Falkland Islands, Fiji Islands, Gibraltar, Gilbert and Ellice Islands, Grenada, Hong Kong, Isle of Man, Mauritius, Montserrat, Rhodesia, St. Christopher, Nevis, St. Helena, St. Lucia, St. Vincent, Seychelles, Swaziland, Tonga, Turks, Virgin Islands. Notification of denunciation received November 15, 1965, effective May 15, 1966. Montreal Convention May 28, 1999 CONVENTION FOR THE UNIFICATION OF CERTAIN RULES FOR INTERNATIONAL CARRIAGE BY AIR THE STATES PARTIES TO THIS CONVENTION RECOGNIZING the significant contribution of the Convention for the Unification of Certain Rules Relating to International Carriage by Air signed in Warsaw on 12 October 1929, hereinafter referred to as the “Warsaw Convention”, and other related instruments to the harmonization of private international air law; RECOGNIZING the need to modernize and consolidate the Warsaw Convention and related instruments; RECOGNIZING the importance of ensuring protection of the interests of consumers in international carriage by air and the need for equitable compensation based on the principle of restitution; REAFFIRMING the desirability of an orderly development of international air transport operations and the smooth flow of passengers, baggage and cargo in accordance with the principles and objectives of the Convention on International Civil Aviation, done at Chicago on 7 December 1944; CONVINCED that collective State action for further harmonization and codification of certain rules governing international carriage by air through a new Convention is the most adequate means of achieving an equitable balance of interests; HAVE AGREED AS FOLLOWS: 1. This Convention applies to all international carriage of persons, baggage or cargo performed by aircraft for reward. It applies equally to gratuitous carriage by aircraft performed by an air transport undertaking. 2. For the purposes of this Convention, the expression international carriage means any carriage in which, according to the agreement between the parties, the place of departure and the place of destination, whether or not there be a break in the carriage or a transshipment, are situated either within the territories of two States Parties, or within the territory of a single State Party if there is an agreed stopping place within the territory of another State, even if that State is not a State Party. Carriage between two points within the territory of a single State Party without an agreed stopping place within the territory of another State is not international carriage for the purposes of this Convention. 3. Carriage to be performed by several successive carriers is deemed, for the purposes of this Convention, to be one undivided carriage if it has been regarded by the parties as a single operation, whether it had been agreed upon under the form of a single contract or of a series of contracts, and it does not lose its international character merely because one contract or a series of contracts is to be performed entirely within the territory of the same State. 4. This Convention applies also to carriage as set out in Chapter V, subject to the terms contained therein. 1. This Convention applies to carriage performed by the State or by legally constituted public bodies provided it falls within the conditions laid down in Article 1. 2. In the carriage of postal items, the carrier shall be liable only to the relevant postal administration in accordance with the rules applicable to the relationship between the carriers and the postal administrations. 3. Except as provided in paragraph 2 of this Article, the provisions of this Convention shall not apply to the carriage of postal items. 1. In respect of carriage of passengers, an individual or collective document of carriage shall be delivered containing: an indication of the places of departure and destination; if the places of departure and destination are within the territory of a single State Party, one or more agree stopping places being within the territory of another State, an indication of at least one such stopping place. 2. Any other means which preserves the information indicated in paragraph 1 may be substituted for the delivery of the document referred to in that paragraph. If any such other means is used, the carrier shall offer to deliver to the passenger a written statement of the information so preserved. 3. The carrier shall deliver to the passenger a baggage identification tag for each piece of checked baggage. 4. The passenger shall be given written notice to the effect that where this Convention is applicable it governs and may limit the liability of carriers in respect of death or injury and for destruction or loss of, or damage to, baggage, and for delay. 5. Non-compliance with the provisions of the foregoing paragraphs shall not affect the existence or the validity of the contract of carriage, which shall, nonetheless, be subject to the rules of this Convention including those relating to limitation of liability. 1. In respect of the carriage of cargo, an air waybill shall be delivered. 2. Any other means which preserves a record of the carriage to be performed may be substituted for the delivery of an air waybill. If such other means are used, the carrier shall, if so requested by the consignor, deliver to the consignor a cargo receipt permitting identification of the consignment and access to the information contained in the record preserved by such other means. The air waybill or the cargo receipt shall include: (a) an indication of the places of departure and destination; (b) if the places of departure and destination are within the territory of a single State Party, one or more agreed stopping places being within the territory of another State, an indication of at least one such stopping place; and (c) an indication of the weight of the consignment. The consignor may be required, if necessary to meet the formalities of customs, police and similar public authorities, to deliver a document indicating the nature of the cargo. This provision creates for the carrier no duty, obligation or liability resulting therefrom. 1. The air waybill shall be made out by the consignor in three original parts. 2. The first part shall be marked „for the carrier“; it shall be signed by the consignor. The second part shall be marked „for the consignee“; it shall be signed by the consignor and by the carrier. The third part shall be signed by the carrier who shall hand it to the consignor after the cargo has been accepted. 3. The signature of the carrier and that of the consignor may be printed or stamped. 4. If, at the request of the consignor, the carrier makes out the air waybill, the carrier shall be deemed, subject to proof to the contrary, to have done so on behalf of the consignor. When there is more than one package: (a) the carrier of cargo has the right to require the consignor to make out separate air waybills; (b) the consignor has the right to require the carrier to deliver separate cargo receipts when the other means referred to in paragraph 2 of Article 4 are used. Non-compliance with the provisions of Articles 4 to 8 shall not affect the existence or the validity of the contract of carriage, which shall, nonetheless, be subject to the rules of this Convention including those relating to limitation of liability. 1. The consignor is responsible for the correctness of the particulars and statements relating to the cargo inserted by it or on its behalf in the air waybill or furnished by it or on its behalf to the carrier for insertion in the cargo receipt or for insertion in the record preserved by the other means referred to in paragraph 2 of Article 4. The foregoing shall also apply where the person acting on behalf of the consignor is also the agent of the carrier. 2. The consignor shall indemnify the carrier against all damage suffered by it, or by any other person to whom the carrier is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statements furnished by the consignor or on its behalf. 3. Subject to the provisions of paragraphs 1 and 2 of this Article, the carrier shall indemnify the consignor against all damage suffered by it, or by any other person to whom the consignor is liable, by reason of the irregularity, incorrectness or incompleteness of the particulars and statements inserted by the carrier or on its behalf in the cargo receipt or in the record preserved by the other means referred to in paragraph 2 of Article 4. 1. The air waybill or the cargo receipt is prima facie evidence of the conclusion of the contract, of the acceptance of the cargo and of the conditions of carriage mentioned therein. 2. Any statements in the air waybill or the cargo receipt relating to the weight, dimensions and packing of the cargo, as well as those relating to the number of packages, are prima facie evidence of the facts stated; those relating to the quantity, volume and condition of the cargo do not constitute evidence against the carrier except so far as they both have been, and are stated in the air waybill or the cargo receipt to have been, checked by it in the presence of the consignor, or relate to the apparent condition of the cargo. 1. Subject to its liability to carry out all its obligations under the contract of carriage, the consignor has the right to dispose of the cargo by withdrawing it at the airport of departure or destination, or by stopping it in the course of the journey on any landing, or by calling for it to be delivered at the place of destination or in the course of the journey to a person other than the consignee originally designated, or by requiring it to be returned to the airport of departure. The consignor must not exercise this right of disposition in such a way as to prejudice the carrier or other consignors and must reimburse any expenses occasioned by the exercise of this right. 2. If it is impossible to carry out the instructions of the consignor, the carrier must so inform the consignor forthwith. 3. If the carrier carries out the instructions of the consignor for the disposition of the cargo without requiring the production of the part of the air waybill or the cargo receipt delivered to the latter, the carrier will be liable, without prejudice to its right of recovery from the consignor, for any damage which may be caused thereby to any person who is lawfully in possession of that part of the air waybill or the cargo receipt. 4. The right conferred on the consignor ceases at the moment when that of the consignee begins in accordance with Article 13. Nevertheless, if the consignee declines to accept the cargo, or cannot be communicated with, the consignor resumes its right of disposition. 1. Except when the consignor has exercised its right under Article 12, the consignee is entitled, on arrival of the cargo at the place of destination, to require the carrier to deliver the cargo to it, on payment of the charges due and on complying with the conditions of carriage. 2. Unless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the cargo arrives. 3. If the carrier admits the loss of the cargo, or if the cargo has not arrived at the expiration of seven days after the date on which it ought to have arrived, the consignee is entitled to enforce against the carrier the rights which flow from the contract of carriage. The consignor and the consignee can respectively enforce all the rights given to them by Articles 12 and 13, each in its own name, whether it is acting in its own interest or in the interest of another, provided that it carries out the obligations imposed by the contract of carriage. 1. Articles 12, 13 and 14 do not affect either the relations of the consignor and the consignee with each other or the mutual relations of third parties whose rights are derived either from the consignor or from the consignee. 2. The provisions of Articles 12, 13 and 14 can only be varied by express provision in the air waybill or the cargo receipt. 1. The consignor must furnish such information and such documents as are necessary to meet the formalities of customs, police and any other public authorities before the cargo can be delivered to the consignee. The consignor is liable to the carrier for any damage occasioned by the absence, insufficiency or irregularity of any such information or documents, unless the damage is due to the fault of the carrier, its servants or agents. 2. The carrier is under no obligation to enquire into the correctness or sufficiency of such information or documents. 1. The carrier is liable for damage sustained in case of death or bodily injury of a passenger upon condition only that the accident which caused the death or injury took place on board the aircraft or in the course of any of the operations of embarking or disembarking. 2. The carrier is liable for damage sustained in case of destruction or loss of, or of damage to, checked baggage upon condition only that the event which caused the destruction, loss or damage took place on board the aircraft or during any period within which the checked baggage was in the charge of the carrier. However, the carrier is not liable if and to the extent that the damage resulted from the inherent defect, quality or vice of the baggage. In the case of unchecked baggage, including personal items, the carrier is liable if the damage resulted from its fault or that of its servants or agents. 3. If the carrier admits the loss of the checked baggage, or if the checked baggage has not arrived at the expiration of twenty-one days after the date on which it ought to have arrived, the passenger is entitled to enforce against the carrier the rights which flow from the contract of carriage. 4. Unless otherwise specified, in this Convention the term “baggage” means both checked baggage and unchecked baggage. 1. The carrier is liable for damage sustained in the event of the destruction or loss of, or damage to, cargo upon condition only that the event which caused the damage so sustained took place during the carriage by air. 2. However, the carrier is not liable if and to the extent it proves that the destruction, or loss of, or damage to, the cargo resulted from one or more of the following: (a) inherent defect, quality or vice of that cargo; (b) defective packing of that cargo performed by a person other than the carrier or its servants or agents; (c) an act of war or an armed conflict; (d) an act of public authority carried out in connection with the entry, exit or transit of the cargo. 3. The carriage by air within the meaning of paragraph 1 of this Article comprises the period during which the cargo is in the charge of the carrier. 4. The period of the carriage by air does not extend to any carriage by land, by sea or by inland waterway performed outside an airport. If, however, such carriage takes place in the performance of a contract for carriage by air, for the purpose of loading, delivery or transshipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the carriage by air. If a carrier, without the consent of the consignor, substitutes carriage by another mode of transport for the whole or part of a carriage intended by the agreement between the parties to be carriage by air, such carriage by another mode of transport is deemed to be within the period of carriage by air. The carrier is liable for damage occasioned by delay in the carriage by air of passengers, baggage or cargo. Nevertheless, the carrier shall not be liable for damage occasioned by delay if it proves that it and its servants and agents took all measures that could reasonably be required to avoid the damage or that it was impossible for it or them to take such measures. If the carrier proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of the person claiming compensation, or the person from whom he or she derives his or her rights, the carrier shall be wholly or partly exonerated from its liability to the claimant to the extent that such negligence or wrongful act or omission caused or contributed to the damage. When by reason of death or injury of a passenger compensation is claimed by a person other than the passenger, the carrier shall likewise be wholly or partly exonerated from its liability to the extent that it proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of that passenger. This Article applies to all the liability provisions in this Convention, including paragraph 1 of Article 21. 1. For damages arising under paragraph 1 of Article 17 not exceeding 100 000 Special Drawing Rights for each passenger, the carrier shall not be able to exclude or limit its liability. 2. The carrier shall not be liable for damages arising under paragraph 1 of Article 17 to the extent that they exceed for each passenger 100 000 Special Drawing Rights if the carrier proves that: (a) such damage was not due to the negligence or other wrongful act or omission of the carrier or its servants or agents; or (b) such damage was solely due to the negligence or other wrongful act or omission of a third party. 1. In the case of damage caused by delay as specified in Article 19 in the carriage of persons, the liability of the carrier for each passenger is limited to 4 150 Special Drawing Rights. 2. In the carriage of baggage, the liability of the carrier in the case of destruction, loss, damage or delay is limited to 1 000 Special Drawing Rights for each passenger unless the passenger has made, at the time when the checked baggage was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the passenger’s actual interest in delivery at destination. 3. In the carriage of cargo, the liability of the carrier in the case of destruction, loss, damage or delay is limited to a sum of 17 Special Drawing Rights per kilogramme, unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the consignor’s actual interest in delivery at destination. 4. In the case of destruction, loss, damage or delay of part of the cargo, or of any object contained therein, the weight to be taken into consideration in determining the amount to which the carrier’s liability is limited shall be only the total weight of the package or packages concerned. Nevertheless, when the destruction, loss, damage or delay of a part of the cargo, or of an object contained therein, affects the value of other packages covered by the same air waybill, or the same receipt or, if they were not issued, by the same record preserved by the other means referred to in paragraph 2 of Article 4, the total weight of such package or packages shall also be taken into consideration in determining the limit of liability. 5. The foregoing provisions of paragraphs 1 and 2 of this Article shall not apply if it is proved that the damage resulted from an act or omission of the carrier, its servants or agents, done with intent to cause damage or recklessly and with knowledge that damage would probably result; provided that, in the case of such act or omission of a servant or agent, it is also proved that such servant or agent was acting within the scope of its employment. 6. The limits prescribed in Article 21 and in this Article shall not prevent the court from awarding, in accordance with its own law, in addition, the whole or part of the court costs and of the other expenses of the litigation incurred by the plaintiff, including interest. The foregoing provision shall not apply if the amount of the damages awarded, excluding court costs and other expenses of the litigation, does not exceed the sum which the carrier has offered in writing to the plaintiff within a period of six months from the date of the occurrence causing the damage, or before the commencement of the action, if that is later. 1. The sums mentioned in terms of Special Drawing Right in this Convention shall be deemed to refer to the Special Drawing Right as defined by the International Monetary Fund. Conversion of the sums into national currencies shall, in case of judicial proceedings, be made according to the value of such currencies in terms of the Special Drawing Right at the date of the judgement. The value of a national currency, in terms of the Special Drawing Right, of a State Party which is a Member of the International Monetary Fund, shall be calculated in accordance with the method of valuation applied by the International Monetary Fund, in effect at the date of the judgement, for its operations and transactions. The value of a national currency, in terms of the Special Drawing Right, of a State Party which is not a Member of the International Monetary Fund, shall be calculated in a manner determined by that State. 2. Nevertheless, those States which are not Members of the International Monetary Fund and whose law does not permit the application of the provisions of paragraph 1 of this Article may, at the time of ratification or accession or at any time thereafter, declare that the limit of liability of the carrier prescribed in Article 21 is fixed at a sum of 1 500 000 monetary units per passenger in judicial proceedings in their territories; 62 500 monetary units per passenger with respect to paragraph 1 of Article 22; 15 000 monetary units per passenger with respect to paragraph 2 of Article 22; and 250 monetary units per kilogramme with respect to paragraph 3 of Article 22. This monetary unit corresponds to sixty-five and a half milligrammes of gold of millesimal fineness nine hundred. These sums may be converted into the national currency concerned in round figures. The conversion of these sums into national currency shall be made according to the law of the State concerned. 3. The calculation mentioned in the last sentence of paragraph 1 of this Article and the conversion method mentioned in paragraph 2 of this Article shall be made in such manner as to express in the national currency of the State Party as far as possible the same real value for the amounts in Articles 21 and 22 as would result from the application of the first three sentences of paragraph 1 of this Article. States Parties shall communicate to the depositary the manner of calculation pursuant to paragraph 1 of this Article, or the result of the conversion in paragraph 2 of this Article as the case may be, when depositing an instrument of ratification, acceptance, approval of or accession to this Convention and whenever there is a change in either. 1. Without prejudice to the provisions of Article 25 of this Convention and subject to paragraph 2 below, the limits of liability prescribed in Articles 21, 22 and 23 shall be reviewed by the Depositary at five-year intervals, the first such review to take place at the end of the fifth year following the date of entry into force of this Convention, or if the Convention does not enter into force within five years of the date it is first open for signature, within the first year of its entry into force, by reference to an inflation factor which corresponds to the accumulated rate of inflation since the previous revision or in the first instance since the date of entry into force of the Convention. The measure of the rate of inflation to be used in determining the inflation factor shall be the weighted average of the annual rates of increase or decrease in the Consumer Price Indices of the States whose currencies comprise the Special Drawing Right mentioned in paragraph 1 of Article 23. 2. If the review referred to in the preceding paragraph concludes that the inflation factor has exceeded 10 per cent, the Depositary shall notify States Parties of a revision of the limits of liability. Any such revision shall become effective six months after its notification to the States Parties. If within three months after its notification to the States Parties a majority of the States Parties register their disapproval, the revision shall not become effective and the Depositary shall refer the matter to a meeting of the States Parties. The Depositary shall immediately notify all States Parties of the coming into force of any revision. 3. Notwithstanding paragraph 1 of this Article, the procedure referred to in paragraph 2 of this Article shall be applied at any time provided that one-third of the States Parties express a desire to that effect and upon condition that the inflation factor referred to in paragraph 1 has exceeded 30 per cent since the previous revision or since the date of entry into force of this Convention if there has been no previous revision. Subsequent reviews using the procedure described in paragraph 1 of this Article will take place at five-year intervals starting at the end of the fifth year following the date of the reviews under the present paragraph. A carrier may stipulate that the contract of carriage shall be subject to higher limits of liability than those provided for in this Convention or to no limits of liability whatsoever. Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down in this Convention shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Convention. Nothing contained in this Convention shall prevent the carrier from refusing to enter into any contract of carriage, from waiving any defences available under the Convention, or from laying down conditions which do not conflict with the provisions of this Convention. In the case of aircraft accidents resulting in death or injury of passengers, the carrier shall, if required by its national law, make advance payments without delay to a natural person or persons who are entitled to claim compensation in order to meet the immediate economic needs of such persons. Such advance payments shall not constitute a recognition of liability and may be offset against any amounts subsequently paid as damages by the carrier. In the carriage of passengers, baggage and cargo, any action for damages, however founded, whether under this Convention or in contract or in tort or otherwise, can only be brought subject to the conditions and such limits of liability as are set out in this Convention without prejudice to the question as to who are the persons who have the right to bring suit and what are their respective rights. In any such action, punitive, exemplary or any other non-compensatory damages shall not be recoverable. 1. If an action is brought against a servant or agent of the carrier arising out of damage to which the Convention relates, such servant or agent, if they prove that they acted within the scope of their employment, shall be entitled to avail themselves of the conditions and limits of liability which the carrier itself is entitled to invoke under this Convention. 2. The aggregate of the amounts recoverable from the carrier, its servants and agents, in that case, shall not exceed the said limits. 3. Save in respect of the carriage of cargo, the provisions of paragraphs 1 and 2 of this Article shall not apply if it is proved that the damage resulted from an act or omission of the servant or agent done with intent to cause damage or recklessly and with knowledge that damage would probably result. 1. Receipt by the person entitled to delivery of checked baggage or cargo without complaint is prima facie evidence that the same has been delivered in good condition and in accordance with the document of carriage or with the record preserved by the other means referred to in paragraph 2 of Article 3 and paragraph 2 of Article 4. 2. In the case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within seven days from the date of receipt in the case of checked baggage and fourteen days from the date of receipt in the case of cargo. In the case of delay, the complaint must be made at the latest within twenty-one days from the date on which the baggage or cargo have been placed at his or her disposal. 3. Every complaint must be made in writing and given or dispatched within the times aforesaid. 4. If no complaint is made within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on its part. In the case of the death of the person liable, an action for damages lies in accordance with the terms of this Convention against those legally representing his or her estate. 1. An action for damages must be brought, at the option of the plaintiff, in the territory of one of the States Parties, either before the court of the domicile of the carrier or of its principal place of business, or where it has a place of business through which the contract has been made or before the court at the place of destination. 2. In respect of damage resulting from the death or injury of a passenger, an action may be brought before one of the courts mentioned in paragraph 1 of this Article, or in the territory of a State Party in which at the time of the accident the passenger has his or her principal and permanent residence and to or from which the carrier operates services for the carriage of passengers by air, either on its own aircraft, or on another carrier’s aircraft pursuant to a commercial agreement, and in which that carrier conducts its business of carriage of passengers by air from premises leased or owned by the carrier itself or by another carrier with which it has a commercial agreement. 3. For the purposes of paragraph 2, (a) „commercial agreement“ means an agreement, other than an agency agreement, made between carriers and relating to the provision of their joint services for carriage of passengers by air; (b) „principal and permanent residence“ means the one fixed and permanent abode of the passenger at the time of the accident. The nationality of the passenger shall not be the determining factor in this regard. 4. Questions of procedure shall be governed by the law of the court seized of the case. 1. Subject to the provisions of this Article, the parties to the contract of carriage for cargo may stipulate that any dispute relating to the liability of the carrier under this Convention shall be settled by arbitration. Such agreement shall be in writing. 2. The arbitration proceedings shall, at the option of the claimant, take place within one of the jurisdictions referred to in Article 33. 3. The arbitrator or arbitration tribunal shall apply the provisions of this Convention. 4. The provisions of paragraphs 2 and 3 of this Article shall be deemed to be part of every arbitration clause or agreement, and any term of such clause or agreement which is inconsistent therewith shall be null and void. 1. The right to damages shall be extinguished if an action is not brought within a period of two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped. 2. The method of calculating that period shall be determined by the law of the court seised of the case. 1. In the case of carriage to be performed by various successive carriers and falling within the definition set out in paragraph 3 of Article 1, each carrier which accepts passengers, baggage or cargo is subject to the rules set out in this Convention and is deemed to be one of the parties to the contract of carriage in so far as the contract deals with that part of the carriage which is performed under its supervision. 2. In the case of carriage of this nature, the passenger or any person entitled to compensation in respect of him or her can take action only against the carrier which performed the carriage during which the accident or the delay occurred, save in the case where, by express agreement, the first carrier has assumed liability for the whole journey. 3. As regards baggage or cargo, the passenger or consignor will have a right of action against the first carrier, and the passenger or consignee who is entitled to delivery will have a right of action against the last carrier, and further, each may take action against the carrier which performed the carriage during which the destruction, loss, damage or delay took place. These carriers will be jointly and severally liable to the passenger or to the consignor or consignee. Nothing in this Convention shall prejudice the question whether a person liable for damage in accordance with its provisions has a right of recourse against any other person. 1. In the case of combined carriage performed partly by air and partly by any other mode of carriage, the provisions of this Convention shall, subject to paragraph 4 of Article 18, apply only to the carriage by air, provided that the carriage by air falls within the terms of Article 1. 2. Nothing in this Convention shall prevent the parties in the case of combined carriage from inserting in the document of air carriage conditions relating to other modes of carriage, provided that the provisions of this Convention are observed as regards the carriage by air. The provisions of this Chapter apply when a person (hereinafter referred to as „the contracting carrier“) as a principal makes a contract of carriage governed by this Convention with a passenger or consignor or with a person acting on behalf of the passenger or consignor, and another person (hereinafter referred to as „the actual carrier“) performs, by virtue of authority from the contracting carrier, the whole or part of the carriage, but is not with respect to such part a successive carrier within the meaning of this Convention. Such authority shall be presumed in the absence of proof to the contrary. If an actual carrier performs the whole or part of carriage which, according to the contract referred to in Article 39, is governed by this Convention, both the contracting carrier and the actual carrier shall, except as otherwise provided in this Chapter, be subject to the rules of this Convention, the former for the whole of the carriage contemplated in the contract, the latter solely for the carriage which it performs. 1. The acts and omissions of the actual carrier and of its servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the contracting carrier. 2. The acts and omissions of the contracting carrier and of its servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the actual carrier. Nevertheless, no such act or omission shall subject the actual carrier to liability exceeding the amounts referred to in Articles 21, 22, 23 and 24. Any special agreement under which the contracting carrier assumes obligations not imposed by this Convention or any waiver of rights or defences conferred by this Convention or any special declaration of interest in delivery at destination contemplated in Article 22 shall not affect the actual carrier unless agreed to by it. Any complaint to be made or instruction to be given under this Convention to the carrier shall have the same effect whether addressed to the contracting carrier or to the actual carrier. Nevertheless, instructions referred to in Article 12 shall only be effective if addressed to the contracting carrier. In relation to the carriage performed by the actual carrier, any servant or agent of that carrier or of the contracting carrier shall, if they prove that they acted within the scope of their employment, be entitled to avail themselves of the conditions and limits of liability which are applicable under this Convention to the carrier whose servant or agent they are, unless it is proved that they acted in a manner that prevents the limits of liability from being invoked in accordance with this Convention. In relation to the carriage performed by the actual carrier, the aggregate of the amounts recoverable from that carrier and the contracting carrier, and from their servants and agents acting within the scope of their employment, shall not exceed the highest amount which could be awarded against either the contracting carrier or the actual carrier under this Convention, but none of the persons mentioned shall be liable for a sum in excess of the limit applicable to that person. In relation to the carriage performed by the actual carrier, an action for damages may be brought, at the option of the plaintiff, against that carrier or the contracting carrier, or against both together or separately. If the action is brought against only one of those carriers, that carrier shall have the right to require the other carrier to be joined in the proceedings, the procedure and effects being governed by the law of the court seized of the case. Any action for damages contemplated in Article 45 must be brought, at the option of the plaintiff, in the territory of one of the States Parties, either before a court in which an action may be brought against the contracting carrier, as provided in Article 33, or before the court having jurisdiction at the place where the actual carrier has its domicile or its principal place of business. Any contractual provision tending to relieve the contracting carrier or the actual carrier of liability under this Chapter or to fix a lower limit than that which is applicable according to this Chapter shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Chapter. Except as provided in Article 45, nothing in this Chapter shall affect the rights and obligations of the carriers between themselves, including any right of recourse or indemnification. Any clause contained in the contract of carriage and all special agreements entered into before the damage occurred by which the parties purport to infringe the rules laid down by this Convention, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void. States Parties shall require their carriers to maintain adequate insurance covering their liability under this Convention. A carrier may be required by the State Party into which it operates to furnish evidence that it maintains adequate insurance covering its liability under this Convention. The provisions of Articles 3 to 5, 7 and 8 relating to the documentation of carriage shall not apply in the case of carriage performed in extraordinary circumstances outside the normal scope of a carrier’s business. The expression “days” when used in this Convention means calendar days, not working days. 1. This Convention shall be open for signature in Montreal on 28 May 1999 by States participating in the International Conference on Air Law held at Montreal from 10 to 28 May 1999. After 28 May 1999, the Convention shall be open to all States for signature at the Headquarters of the International Civil Aviation Organization in Montreal until it enters into force in accordance with paragraph 6 of this Article. 2. This Convention shall similarly be open for signature by Regional Economic Integration Organisations. For the purpose of this Convention, a „Regional Economic Integration Organisation“ means any organisation which is constituted by sovereign States of a given region which has competence in respect of certain matters governed by this Convention and has been duly authorized to sign and to ratify, accept, approve or accede to this Convention. A reference to a “State Party” or “States Parties” in this Convention, otherwise than in paragraph 2 of Article 1, paragraph 1(b) of Article 3, paragraph (b) of Article 5, Articles 23, 33, 46 and paragraph (b) of Article 57, applies equally to a Regional Economic Integration Organisation. For the purpose of Article 24, the references to “a majority of the States Parties” and „one-third of the States Parties“ shall not apply to a Regional Economic Integration Organisation. 3. This Convention shall be subject to ratification by States and by Regional Economic Integration Organisations which have signed it. 4. Any State or Regional Economic Integration Organisation which does not sign this Convention may accept, approve or accede to it at any time. 5. Instruments of ratification, acceptance, approval or accession shall be deposited with the International Civil Aviation Organization, which is hereby designated the Depositary. 6. This Convention shall enter into force on the sixtieth day following the date of deposit of the thirtieth instrument of ratification, acceptance, approval or accession with the Depositary between the States which have deposited such instrument. An instrument deposited by a Regional Economic Integration Organisation shall not be counted for the purpose of this paragraph. 7. For other States and for other Regional Economic Integration Organisations, this Convention shall take effect sixty days following the date of deposit of the instrument of ratification, acceptance, approval or accession. 8. The Depositary shall promptly notify all signatories and States Parties of: (a) each signature of this Convention and date thereof; (b) each deposit of an instrument of ratification, acceptance, approval or accession and date thereof; (c) the date of entry into force of this Convention; (d) the date of the coming into force of any revision of the limits of liability established under this Convention; (e) any denunciation under Article 54. 1. Any State Party may denounce this Convention by written notification to the Depositary. 2. Denunciation shall take effect one hundred and eighty days following the date on which notification is received by the Depositary. This Convention shall prevail over any rules which apply to international carriage by air: 1. between States Parties to this Convention by virtue of those States commonly being Party to (a) the Convention for the Unification of Certain Rules Relating to International Carriage by Air Signed at Warsaw on 12 October 1929 (hereinafter called the Warsaw Convention); (b) the Protocol to Amend the Convention for the Unification of Certain Rules Relating to International Carriage by Air Signed at Warsaw on 12 October 1929, Done at The Hague on 28 September 1955 (hereinafter called The Hague Protocol); (c) the Convention, Supplementary to the Warsaw Convention, for the Unification of Certain Rules Relating to International Carriage by Air Performed by a Person Other than the Contracting Carrier, signed at Guadalajara on 18 September 1961 (hereinafter called the Guadalajara Convention); (d) the Protocol to Amend the Convention for the Unification of Certain Rules Relating to International Carriage by Air Signed at Warsaw on 12 October 1929 as Amended by the Protocol Done at The Hague on 28 September 1955 Signed at Guatemala City on 8 March 1971 (hereinafter called the Guatemala City Protocol); (e) Additional Protocol Nos. 1 to 3 and Montreal Protocol No. 4 to amend the Warsaw Convention as amended by The Hague Protocol or the Warsaw Convention as amended by both The Hague Protocol and the Guatemala City Protocol Signed at Montreal on 25 September 1975 (hereinafter called the Montreal Protocols); or 2. within the territory of any single State Party to this Convention by virtue of that State being Party to one or more of the instruments referred to in sub-paragraphs (a) to (e) above. 1. If a State has two or more territorial units in which different systems of law are applicable in relation to matters dealt with in this Convention, it may at the time of signature, ratification, acceptance, approval or accession declare that this Convention shall extend to all its territorial units or only to one or more of them and may modify this declaration by submitting another declaration at any time. 2. Any such declaration shall be notified to the Depositary and shall state expressly the territorial units to which the Convention applies. 3. In relation to a State Party which has made such a declaration: (a) references in Article 23 to “national currency” shall be construed as referring to the currency of the relevant territorial unit of that State; and (b) the reference in Article 28 to “national law” shall be construed as referring to the law of the relevant territorial unit of that State. No reservation may be made to this Convention except that a State Party may at any time declare by a notification addressed to the Depositary that this Convention shall not apply to: (a) international carriage by air performed and operated directly by that State Party for non-commercial purposes in respect to its functions and duties as a sovereign State; and/or (b) the carriage of persons, cargo and baggage for its military authorities on aircraft registered in or leased by that State Party, the whole capacity of which has been reserved by or on behalf of such authorities. IN WITNESS WHEREOF the undersigned Plenipotentiaries, having been duly authorized, have signed this Convention. DONE at Montreal on the 28th day of May of the year one thousand nine hundred and ninety-nine in the English, Arabic, Chinese, French, Russian and Spanish languages, all texts being equally authentic. This Convention shall remain deposited in the archives of the International Civil Aviation Organization, and certified copies thereof shall be transmitted by the Depositary to all States Parties to this Convention, as well as to all States Parties to the Warsaw Convention, The Hague Protocol, the Guadalajara Convention, the Guatemala City Protocol, and the Montreal Protocols.

Section 1

The payment of filing and all other legal fees by the plaintiff shall be made upon the filing of the complaint. No action shall be taken upon the prayer for issuance of a WAVe unless all legal fees have been paid and the plaintiff has undertaken to pay for port dues, charges and other expenses to be incurred in the maintenance of the property under arrest.

Section 2

The regular procedure prescribed in the Rules of Court, and other pertinent Supreme Court Circulars and Resolutions, shall apply to the Rules of Procedure for Admiralty Cases herein provided in a suppletory capacity insofar as they are not inconsistent herewith.

Section 3

These Rules shall also apply to pending Admiralty cases with respect to the remainder of the proceedings.

Section 4

The judgment or final order shall be appealable to the appropriate court, except for limitation actions as provided in Rule 8, which shall decide the same in accordance with the provisions on appeals of the Rules of Court.

Section 5

The Supreme Court shall designate existing branches of the Regional Trial Courts as Admiralty courts which shall have jurisdiction over all actions in Admiralty.

Section 6

The application and adherence to the Rules of Procedure for Admiralty Cases shall be subject to periodic monitoring by the Sub-Committee, through the Office of the Court Administrator (OCA). For this purpose, all designated Admiralty courts shall accomplish and submit a periodic report of data in a form to be generated and distributed by the OCA. Training of judges and courts personnel shall be undertaken by the Philippine Judicial Academy in coordination with the Sub-Committee.

Section 7

The Rules of Procedure for Admiralty Cases shall take effect on January 1, 2020. Published in the Philippine Daily Inquirer and The Philippine Star on October 20, 2019. Warsaw Convention October 12, 1929 WARSAW CONVENTION FOR THE UNIFICATION OF CERTAIN RULES RELATING TO INTERNATIONAL CARRIAGE BY AIR The President of the German Reich, the Federal President of the Republic of Austria, His Majesty the King of the Belgians, the President of the United States of Brazil, His Majesty the King of the Bulgarians, the President of the Nationalist Government of China, His Majesty the King of Denmark and Iceland, His Majesty the King of Egypt, His Majesty the King of Spain, the Chief of State of the Republic of Estonia, the President of the Republic of Finland, the President of the French Republic, His Majesty the King of Great Britain, Ireland, and the British Dominions beyond the Seas, Emperor of India, the President of the Hellenic Republic, His Most Serene Highness the Regent of the Kingdom of Hungary, His Majesty the King of Italy, His Majesty the Emperor of Japan, the President of the Republic of Latvia, Her Royal Highness the Grand Duchess of Luxemburg, the President of the United Mexican States, His Majesty the King of Norway, Her Majesty the Queen of the Netherlands, the President of the Republic of Poland, His Majesty the King of Romania, His Majesty the King of Sweden, the Swiss Federal Council, the President of the Czechoslovak Republic, the Central Executive Committee of the Union of Soviet Socialist Republics, the President of the United States of Venezuela, His Majesty the King of Yugoslavia: Having recognized the advantage of regulating in a uniform manner the conditions of international transportation by air in respect of the documents used for such transportation and of the liability of the carrier, Having nominated to this end their respective Plenipotentiaries, who, being thereto duly authorized, have concluded and signed the following convention: