Practice question
One package worth US$4,000 is lost. The parties stipulate that COGSA applies, no qualifying declaration was made, and no basis defeats its ordinary limitation. What is the statutory ceiling for that package?
- US$4,000 automatically.
- US$2,000 because the value is halved.
- US$500 multiplied by days at sea.
- US$500.
- No damages can ever be awarded.
Legal references
- Eastern Shipping Lines v. BPI/MS Insurance, G.R. No. 182864, January 12, 2015, main decision, COGSA Section 4(5): https://www.lawphil.net/judjuris/juri2015/jan2015/gr_182864_2015.html
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