The Philippines will soon have admiralty courts with the Supreme Court (SC) recently resolving to adopt rules of procedure for maritime cases. The rules take effect January 1, 2020.
Also known as maritime courts, admiralty courts exercise jurisdiction over all maritime contracts, torts, injuries, and offenses. Currently, cases involving admiralty and maritime laws in the Philippines fall under the RTC’s designated “Special Commerce Courts.”
In a September 17, 2019 en banc resolution, the SC adopted and promulgated the Rules of Procedure for Admiralty Cases (The Rules), designating existing regional trial courts (RTCs) as admiralty courts.
In a statement, the SC said saw it fit to provide RTCs with a special and summary procedure for admiralty cases to provide parties of such cases a “fast, reliable, and efficient means of recourse to Philippine courts.”
It added that The Rules was issued to “enhance the administration of justice in Admiralty cases in the Philippines through the development of judicial expertise.”
The Rules covers civil actions filed under shipping and other related laws, rules, and regulations, while allowing international shipping norms and standards to apply.
Innovations from foreign jurisdictions are introduced, such as the arrest of a vessel, cargo or freight to secure a maritime claim, and the appointment of appraisers to determine a vessel’s or cargo’s value when sold to satisfy a final judgment.
The Rules also establishes a special proceeding for limitation actions to facilitate the application of the “limited liability rule” under the Code of Commerce.
In certain instances, ship owners may limit their liability for claims arising from marine casualties by constituting a limitation fund and abandoning their vessel.
Likewise incorporated in The Rules are concepts proven to reduce trial time and speed up case resolution, such as prohibited pleadings and motions, continuous trial, and defined timelines for every stage of trial.
The regular procedure prescribed in the Rules of Court, and other pertinent SC circulars and resolutions, will apply to The Rules in a suppletory capacity insofar as they are not inconsistent.
SC said the Philippine Judicial Academy will train judges and courts personnel for implementation of The Rules.
The application and adherence to The Rules will be periodically monitored through the Office of the Court Administrator (OCA). For this purpose, all designated admiralty courts will have to accomplish and submit a periodic report of data in a form to be generated and distributed by the OCA.
The Special Committee for The Rules of Procedure for Admiralty Cases is headed by SC chief justice Diosdado M. Peralta and associate justice Alexander G. Gesmundo as chairperson and vice chairperson, respectively.
Peralta, who was tasked by then chief justice Lucas Bersamin to address procedural issues encountered in admiralty cases, explained that “a procedure that promotes the speedy and efficient resolution of admiralty cases, as well as courts that are up to speed with international norms, standards, and best practices, will help the Philippines become more progressive and competitive in the global shipping industry.”
The Rules was drafted after the creation of the Special Committee for The Rules of Procedure for Admiralty Cases under Memorandum Order No. 23-2019 dated April 3, 2019.
The SC said The Rules was drafted in consultation with the different stakeholders in the maritime industry. – Roumina Pablo