Doctrine of Inscrutable Fault

DOCTRINE OF INSCRUTABLE FAULT

Case in which it cannot be decided which of the two vessels had caused the collision; court determines that collision is caused by fault but cannot determine which of the vessels is at fault

AVERAGE; KINDS OF AVERAGE

An extraordinary or accidental expense incurred during the voyage in order to preserve the cargo, vessel or both and all damages or deterioration suffered by the vessel from departure to the port of destination and to the cargo from the port of lading to the port of consignment

Classes:

1)      Particular/Simple

Damage/expense caused to the vessel or cargo that did not inured to the common benefit and borne by respected owner

The owner of the goods which give rise to expense or suffer damage shall bear this average

2)      Gross or General

Damage/expenses deliberately caused in order to save the vessel, its cargo or both from real or known risk

DEMURRAGE 

Sum which is fixed by the contract of carriage, or which is allowed, as remuneration to the owner of a ship for the detention of his vessel beyond the number of days allowed by the charter party for unloading/loading/sailing

LAY TIME/ LAY DAYS

Days allowed to charter parties for loading and unloading

 

CHARTER PARTY; KINDS OF CHARTER PARTY CONTRACT

Contract by virtue of which the owner or agent binds himself to transport merchandise or persons of a fixed price

Classes: 

1)      as to extent of vessel hired

a)  total-whole of the vessel is chartered

b) partial-only; part of the vessel is chartered

2)      as to time

a) until a fixed day/ for a determined number of days and months

b) for a voyage (outgoing/return/round-trip)

3)      as to freightage

a) for a fixed amount for the whole cargo

b) for a fixed amount per ton

c)  for a fixed amount per month

COLLISION

Impact of two vessels both of which are moving

ALLISION

Impact between a moving vessel and stationary one

STAGES OF COLLISION

First zone- all time up to the moment when the risk of collision begins

Second zone – time between moment when risk of collision begins and moment it becomes a practical  certainty

Third zone- time when collision is certain and time of impact

DOCTRINE OF INSCRUTABLE FAULT

Case in which it cannot be decided which of the two vessels had caused the collision; court determines that collision is caused by fault but cannot determine which of the vessels is at fault

PRIOR-OPERATOR RULE

The law contemplates that the first licensee will be protected in is investment and will not be subjected to ruinous competition. It is not therefore the policy of the law to issue a Certificate of Public Convenience to a second operator to cover the same field and in competition with a first operator who is rendering sufficient adequate and satisfactory service, and who in all things and respects as complying with the rules and regulations of the commission. The old operator must be given the opportunity to improve and extend his lines.

PRIOR-APPLICANT RULE

Priority in the filing of application for a Certificate of Public Convenience is, other conditions being equal, an important factor in determining the rights of the public service companies and in the granting or refusal of a certificate.