(1) The claims and obligations of a carrier against a consignor or consignee shall be terminated, whatever the causes for the claims may be, where no judicial claim is made within one year after the date when the carrier has delivered or will deliver the cargo to the consignee: Provided, That this period may be extended by an agreement between the parties.
(2) In cases where a carrier has re-entrusted a third party with the transportation he/she received, if a consignor or consignee has agreed on compensation with the carrier or has made a judicial claim against the carrier within the period set forth in paragraph (1), the claim and the obligation of the carrier against a third party, notwithstanding the provisions of paragraph (1), shall not be terminated until three months have passed from the date of such agreement or claim. The same shall also apply in cases where there is an agreement between the carrier and a third party to the same effect as the proviso to paragraph (1).
(3) In cases falling under paragraph (2), if a carrier who received a judicial claim has given notice of a lawsuit against a third party within three months therefrom, the period of three months shall be reckoned when the trial has been determined or terminated.[This Article Wholly Amended by Act No. 8581, Aug. 3, 2007]