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TRANSPORTATION AND PUBLIC UTILITY LAW

*from page 4

-A2010-

PROF. RODRIGO LOPE QUIMBO


!%u't !o" the sh 0ment $%s %'"e%&4 n &%m%ge %n& +%& o"&e" con& t on $hen "ece #e& +4 t, +ut nonethe'ess, t st '' e;e"c se& e;t"% o"& n%"4 c%"e %n& & ' gence n the h%n&' ngF&e' #e"4 o! the c%"go to cons gnee n the s%me con& t on sh 0ment $%s "ece #e& +4 t) The cou"t % 9uo !oun& th%t the 'ossesF&%m%ges $e"e sust% ne& $h 'e n the "es0ect #e %n&Fo" success #e custo&4 %n& 0ossess on o! &e!en&%nts c%"" e" (E%ste"n), %""%st"e o0e"%to" (Met"o Po"t) %n& +"o5e" (A'' e& ,"o5e"%ge)- Th s +ecomes e# &ent $hen the M%" ne C%"go Su"#e4 Re0o"t, $ th ts 2A&& t on%' Su"#e4 Notes2, %"e cons &e"e&- In the '%tte" notes, t s st%te& th%t $hen the sh 0ment $%s 2'%n&e& on #esse'2 to &oc5 t $%s o+se"#e& th%t 2 one (1) fiber drum (was) in damaged condition, covered by the vessel's Agent's Bad Order Tally Sheet o !"#$%-2 ) The "e0o"t !u"the" st%tes th%t $hen &e!en&%nt A'' e& ,"o5e"%ge $ th&"e$ the sh 0ment !"om &e!en&%nt %""%st"e o0e"%to":s custo&4, one &"um $%s !oun& o0ene& $ thout se%', ce''o +%g 0%"t'4 to"n +ut contents nt%ct- The "e0o"t $ent on to st%te th%t $hen the &"ums "e%che& the cons gnee, one &"um $%s !oun& $ th %&u'te"%te&F!%5e& contents- It s o+# ous, the"e!o"e, th%t these 'ossesF&%m%ges occu""e& +e!o"e the sh 0ment "e%che& the cons gnee $h 'e un&e" the success #e custo& es o! &e!en&%nts) Cn&e" A"t- 1</< o! the Ne$ C # ' Co&e, the common c%"" e":s &ut4 to o+se"#e e;t"%o"& n%"4 & ' gence n the # g '%nce o! goo&s "em% ns n !u'' !o"ce %n& e!!ect e#en ! the goo&s %"e tem0o"%" '4 un'o%&e& %n& sto"e& n t"%ns t n the $%"ehouse o! the c%"" e" %t the 0'%ce o! &est n%t on, unt ' the cons gnee h%s +een %&# se& %n& h%s h%& "e%son%+'e o00o"tun t4 to "emo#e o" & s0ose o! the goo&s (A"t- 1</A, NCC)- Ge!en&%nt E%ste"n Sh 00 ng:s o$n e;h + t, the 2Tu"n)O#e" Su"#e4 o! ,%& O"&e" C%"goes2 st%tes th%t one &"um $%s !oun& 2o0en-2 ) The 'o$e"t cou"t thus o"&e"e& the &e!en&%nts to 0%4 0'% nt !!, ?o nt'4 %n& se#e"%''4ISSUE 3ON E%ste"n Sh 00 ng 1 nes, Inc-, the common c%"" e" s ?o nt'4 %n& se#e"%''4 ' %+'e $ th the %""%st"e o0e"%to" %n& customs +"o5e" !o" the c'% m o! 0" #%te "es0on&ent HELD ES. ) The common c%"" e":s &ut4 to o+se"#e the "e9u s te & ' gence n the sh 0ment o! goo&s '%sts !"om the t me the %"t c'es %"e su""en&e"e& to o" uncon& t on%''4 0'%ce& n the 0ossess on o!, %n& "ece #e& +4, the c%"" e" !o" t"%ns0o"t%t on unt ' &e' #e"e& to, o" unt ' the '%0se o! % "e%son%+'e t me !o" the " %cce0t%nce +4, the 0e"son ent t'e& to "ece #e- 3hen the goo&s sh 00e& e the" %"e 'ost o" %"" #e n &%m%ge& con& t on, % 0"esum0t on %" ses %g% nst the c%"" e" o! ts !% 'u"e to o+se"#e th%t & ' gence, %n& the"e nee& not +e %n e;0"ess ! n& ng o! neg' gence to ho'& t ' %+'e)- The"e %"e, o! cou"se, e;ce0t on%' c%ses $hen such 0"esum0t on o! !%u't s not o+se"#e& +ut these c%ses, enume"%te& n A"t c'e 1</4 o! the C # ' Co&e, %"e e;c'us #e, not one o! $h ch c%n +e %00' e& to th s c%se) The 9uest on o! ch%"g ng +oth the c%"" e" %n& the %""%st"e o0e"%to" $ th the o+' g%t on o! 0"o0e"'4 &e' #e" ng the goo&s to the cons gnee h%s, too, +een 0%sse& u0on +4 the Cou"t-

GANZON V CA 161 SCRA 646 SARMIENTO; August 22, 2001 (monch)


NATURE Pet t on !o" "e# e$ on ce"t o"%" un&e" Ru'e 4( FACTS ) *e'%c o Tum%m+ ng cont"%cte& the se"# ces o! M%u"o ,- *%n.on to h%u' /0( tons o! sc"%0 "on !"om M%" #e'es, ,%t%%n, to the 0o"t o! M%n '% on +o%"& the ' ghte" 1CT 2,%tm%n2- 3hen ,%tm%n %"" #e& to M%" #e'es, Tum%m+ ng &e' #e"e& the sc"%0 "on to the c%0t% n o! the ' ghte", &e!en&%nt N .%- 3hen h%'! o! the sc"%0 "on $%s %'"e%&4 'o%&e&, M%4o" A&# ncu'% o! M%" #e'es %"" #e& %n& &em%n&e& (5 !"om Tum%m+ ng- The '%tte" "es ste&, %n& %!te" % %n %"gument, the M%4o" shot Tum%m+ ng6o"tun%te'4, the $oun& $%s not !%t%') A!te" somet me, 'o%& ng $%s "esume&- Act ng M%4o" ,%s ' o Ru+, $ th / 0o' cemen, ho$e#e" %"" #e& %n& o"&e"e& th%t the sc"%0 +e &um0e& $he"e the ' ghte" $%s &oc5e&- The "est $%s +"ought to the com0oun& o! NASSCO- Act ng M%4o" Ru+ then ssue& % "ece 0t st%t ng th%t the mun c 0%' t4 h%s t%5en custo&4 o! the sc"%0) Tum%m+ ng %g% nst *%n.on then ! 'e& &%m%ges +%se& on cu'0% cont"%ctu%'- 7e $onISSUES 1- 3ON the cont"%ct o! c%"" %ge $%s 0e"!ecte& 2- 3ON *%n.on c%n +e %+so'#e& o! ' %+ ' t4 HELD 1- 8ES Reasoning - ,4 the s% & %ct o! &e' #e"4, the sc"%0s $e"e uncon& t on%''4 0'%ce& n the 0ossess on %n& cont"o' o! the common c%"" e", %n& u0on the " "ece 0t +4 the c%"" e" !o" t"%ns0o"t%t on, the cont"%ct o! c%"" %ge $%s &eeme& 0e"!ecte&- Conse9uent'4, the 0et t one")c%"" e":s e;t"%o"& n%"4 "es0ons + ' t4 !o" the 'oss, &est"uct on o" &ete" o"%t on o! the goo&s commence&- Pu"su%nt to A"t- 1</6, such e;t"%o"& n%"4 "es0ons + ' t4 $ou'& ce%se on'4 u0on the &e' #e"4, %ctu%' o" const"uct #e, +4 the c%"" e" to the cons gnee, o" to the 0e"son $ho h%s % " ght to "ece #e them- The !%ct th%t 0%"t o! the sh 0ment h%& not +een 'o%&e& on +o%"& the ' ghte" & & not m0% " the s% & cont"%ct o! t"%ns0o"t%t on %s the goo&s "em% ne& n the custo&4 %n& cont"o' o! the c%"" e", %'+e t st '' un'o%&e&2- NO Reasoning ) Pet t one" %'so !% 's to sho$s th%t the 'oss o! the sc"%0s $%s &ue to %n4 o! the c%use& enume"%te& n A"t c'e 1</4- The c%se %t +%" $ou'& not !%'' un&e" %n4 o! the c%uses n the ' st- 7ence, the 0et t one" s 0"esume& to h%#e +een %t !%u't o" to h%#e %cte& neg' gent'4- St '', the 0et t one" cou'& h%#e +een e;em0te& !"om %n4 ' %+ ' t4 h%& he +een %+'e to 0"o#e th%t he o+se"#e& e;t"%o"& n%"4 & ' gence- 7o$e#e", 0et t one" & & not e#en %ttem0t to 0"o#e th s-

) A'so, the nte"#ent on o! the mun c 0%' o!! c %'s &oes not const tute c%so !o"tu to- Pet t one"=s &e!ense s th%t the 'oss $%s &ue to %n 2o"&e" o" %ct o! com0etent 0u+' c %utho" t4>- 7e ho$e#e" !% 'e& to est%+' sh the %ct ng m%4o"=s %utho" t4 to ssue such o"&e"s) The 0et t one" $%s not &ut4 +oun& to o+e4 the ''eg%' o"&e" to &um0 nto the se% the sc"%0 "on- Mo"eo#e", the"e s %+sence o! su!! c ent 0"oo! th%t the ssu%nce o! the s%me o"&e" $%s %tten&e& $ th such !o"ce o" nt m &%t on %s to com0'ete'4 o#e"0o$e" the $ '' o! the 0et t one":s em0'o4ees- The me"e & !! cu't4 n the !u''! 'ment o! the o+' g%t on s not cons &e"e& !o"ce m%?eu"e Disposition Pet t on &en e&@Cont nu%t on

EASTERN SHIPPING LINES, INC. V CA 2/4 SCRA <A BITC*; Du'4 12, 1EE4 (1o"%)
FACTS ) Th s s %n %ct on %g% nst &e!en&%nts sh 00 ng com0%n4, %""%st"e o0e"%to" %n& +"o5e")!o"$%"&e" !o" &%m%ges sust% ne& +4 % sh 0ment $h 'e n &e!en&%nts: custo&4, ! 'e& +4 the nsu"e")su+"ogee $ho 0% & the cons gnee the #%'ue o! such 'ossesF&%m%ges) 2 ! +e" &"ums o! " +o!'%# n $e"e sh 00e& !"om 8o5oh%m%, D%0%n !o" &e' #e"4 #esse' 2SS EASTERN COMET2 o$ne& +4 &e!en&%nt E%ste"n Sh 00 ng 1 nes- The sh 0ment $%s nsu"e& un&e" 0'% nt !!:s M%" ne Insu"%nce Po' c4) C0on %"" #%' o! the sh 0ment n M%n '%, t $%s & sch%"ge& unto the custo&4 o! &e!en&%nt Met"o Po"t Se"# ce, Inc- The '%tte" e;ce0te& to one &"um, s% & to +e n +%& o"&e", $h ch &%m%ge $%s un5no$n to 0'% nt !!) Ge!en&%nt A'' e& ,"o5e"%ge Co"0o"%t on "ece #e& the sh 0ment !"om &e!en&%nt Met"o Po"t Se"# ce, Inc-, one &"um o0ene& %n& $ thout se%') A'' e& ,"o5e"%ge Co"0o"%t on m%&e &e' #e" es o! the sh 0ment to the cons gnee:s $%"ehouse- The '%tte" e;ce0te& to one &"um $h ch cont% ne& s0 ''%ges, $h 'e the "est o! the contents $%s %&u'te"%te&F!%5e) P'% nt !! conten&e& th%t &ue to the 'ossesF&%m%ge sust% ne& +4 s% & &"um, the cons gnee su!!e"e& 'osses tot%' ng P1E,0/2-E(, &ue to the !%u't %n& neg' gence o! &e!en&%nts- C'% ms $e"e 0"esente& %g% nst &e!en&%nts $ho !% 'e& %n& "e!use& to 0%4 the s%me) As % conse9uence o! the 'osses sust% ne&, 0'% nt !! $%s com0e''e& to 0%4 the cons gnee P1E,0/2-E( un&e" the %!o"est%te& m%" ne nsu"%nce 0o' c4, so th%t t +ec%me su+"og%te& to %'' the " ghts o! %ct on o! s% & cons gnee %g% nst &e!en&%nts) Ge!en&%nts ! 'e& the " "es0ect #e %ns$e"s, t"%#e"s ng the m%te" %' %''eg%t ons o! the com0'% nt conten& ng th%tH As !o" &e!en&%nt E%ste"n Sh 00 ng t %''ege& th%t the sh 0ment $%s & sch%"ge& n goo& o"&e" !"om the #esse' unto the custo&4 o! Met"o Po"t Se"# ce so th%t %n4 &%m%geF'osses ncu""e& %!te" the sh 0ment $%s ncu""e& %!te" the sh 0ment $%s tu"ne& o#e" to the '%tte", s no 'onge" ts ' %+ ' t4; Met"o0o"t %#e""e& th%t %'though su+?ect sh 0ment $%s & sch%"ge& unto ts custo&4, 0o"t on o! the s%me $%s %'"e%&4 n +%& o"&e"; A'' e& ,"o5e"%ge %''ege& th%t 0'% nt !! h%s no c%use o! %ct on %g% nst t, not h%# ng neg' gent o" %t

21

TRANSPORTATION AND PUBLIC UTILITY LAW


) In &ireman's &und (nsurance vs- )etro *ort Services, the Cou"t h%#e e;0'% ne&, n ho'& ng the c%"" e" %n& the %""%st"e o0e"%to" ' %+'e n solidum, thusH
The 'eg%' "e'%t onsh 0 +et$een the cons gnee %n& the %""%st"e o0e"%to" s %5 n to th%t o! % &e0os to" %n& $%"ehousem%n- The "e'%t onsh 0 +et$een the cons gnee %n& the common c%"" e" s s m '%" to th%t o! the cons gnee %n& the %""%st"e o0e"%to" (- S nce t s the &ut4 o! the ARRASTRE to t%5e goo& c%"e o! the goo&s th%t %"e n ts custo&4 %n& to &e' #e" them n goo& con& t on to the cons gnee, such "es0ons + ' t4 %'so &e#o'#es u0on the CARRIER- ,oth the ARRASTRE %n& the CARRIER %"e the"e!o"e ch%"ge& $ th the o+' g%t on to &e' #e" the goo&s n goo& con& t on to the cons gnee-

-A2010-

PROF. RODRIGO LOPE QUIMBO


cont"%ct $ '' +e const"ue& most st"ong'4 %g% nst the c%"" e", %n& !%#o"%+'4 to the cons gno", n c%se o! &ou+t n %n4 m%tte" o! const"uct onReasoning ) C'%use 1 cont% ns %n im.lied un&e"t%5 ng to sett'e n c%se o! 'oss on the +%s s o! not e;cee& ng L(00 0e" !"e ght ton $he"e%s c'%use E cont% ns %n e/.ress un&e"t%5 ng to sett'e on the +%s s o! the net n#o ce 0" ce 0'us !"e ght %n& nsu"%nce 'ess %'' ch%"ges s%#e&) The"e s %n %00%"ent ""econc '%+'e con!' ct +et$een the t$o c'%uses $ th "eg%"& to the me%su"e o! &e!en&%nt:s ' %+ ' t4) Th s +e ng the c%se, the + '' o! '%& ng n 9uest on shou'& +e nte"0"ete& %g% nst the &e!en&%nt c%"" e", $h ch &"e$ s% & cont"%ct- Th s s n %cco"&%nce $ th the $e'')5no$n 0" nc 0'e o! const"uct on th%t %m+ gu t4 o" unce"t% nt4 n %n %g"eement must +e const"ue& most st"ong'4 %g% nst the 0%"t4 c%us ng t- Thus 2% $" tten cont"%ct shou'&, n c%se o! &ou+t, +e nte"0"ete& %g% nst the 0%"t4 $ho h%s &"%$n the cont"%ct-2 Disposition Du&gment %!! "me&

) The Cou"t &oes not, o! cou"se, m0'4 +4 the %+o#e 0"onouncement th%t the %""%st"e o0e"%to" %n& the customs +"o5e" %"e themse'#es %'$%4s %n& necess%" '4 ' %+'e so' &%" '4 $ th the c%"" e", o" vice+versa, no" th%t %tten&%nt !%cts n % g #en c%se m%4 not #%"4 the "u'e- The nst%nt 0et t on h%s +een +"ought so'e'4 +4 E%ste"n Sh 00 ng 1 nes, $h ch, +e ng the c%"" e" %n& not h%# ng +een %+'e to "e+ut the 0"esum0t on o! !%u't, s, n %n4 e#ent, to +e he'& ' %+'e n th s 0%"t cu'%" c%se- A !%ctu%' ! n& ng o! +oth the cou"t a ,uo %n& the %00e''%te cou"t, $e t%5e note, s th%t 2the"e s su!! c ent e# &ence th%t the sh 0ment sust% ne& &%m%ge $h 'e n the success #e 0ossess on o! %00e''%nts2 (the he"e n 0et t one" %mong them)- Acco"& ng'4, the ' %+ ' t4 m0ose& on E%ste"n Sh 00 ng 1 nes, Inc-, the so'e 0et t one" n th s c%se, s ne# t%+'e "eg%"&'ess o! $hethe" the"e %"e othe"s so' &%" '4 ' %+'e $ th tDisposition Pet t on 0%"t'4 *RANTEG-

!." AS TO A#OUNT OF LIA!ILIT HEACOC$ CO. V #ACONDRA % CO. 42 P7I1 E0 DO7NSON; Octo+e" /, 1E21 (% &%)
FACTS ) Dune (, 1E1E I 7e%coc5 Co- h%& !ou" c%ses o! me"ch%n& se (cont% n ng t$e'#e A)&%4 c'oc5s) &e' #e"e& to M%n '% !"om Ne$ 8o"5 on +o%"& ste%msh 0 Boston -astle- The !"e ght $%s 0% & !o" n %&#%nce) Se0tem+e" 10, 1E1E I Boston -astle %"" #e& n M%n '%- Ne the" the #esse'=s m%ste" no" %n4 %gent !"om M%con&"%4 J Co- &e' #e"e& to 7e%coc5 Co- the !ou" c%ses o! me"ch%n& se &es0 te &em%n&) The + '' o! '%& ng ssue& +4 Boston -astle st%te& th%tH ) KIt s mutually agreed th%t the #%'ue o! the goo&s "ece 0te& !o" %+o#e &oes not e;cee& L(00 0e" !"e ght ton, o", n 0"o0o"t on !o" %n4 0%"t o! % ton, un'ess the #%'ue +e e;0"ess'4 st%te& he"e n %n& %& #%'o"em !"e ght 0% & the"eon (C'%use 1)-> ) KIn the e#ent o! c'% ms !o" sho"t &e' #e"4 o!, o" &%m%ge to, c%"go +e ng m%&e, the c%"" e" sh%'' not +e ' %+'e !o" mo"e th%n the net n#o ce 0" ce 0'us !"e ght %n& nsu"%nce 'ess %'' ch%"ges s%#e&, %n& %n4 'oss o" &%m%ge !o" $h ch the c%"" e" m%4 +e ' %+'e sh%'' +e %&?uste& 0"o "%t% on the s% & +%s s (C'%use E)-> ) The n#o ce #%'ue o! the s% & t$e'#e A)&%4 E&mon& c'oc5s n the c t4 o! Ne$ 8o"5 $%s P22 %n& the m%"5et #%'ue o! the s%me n the C t4 o! M%n '% %t the t me $hen the4 shou'& h%#e +een &e' #e"e& to the 0'% nt !! $%s P420- The c%se cont% n ng the t$e'#e A)&%4 E&mon& c'oc5s

me%su"e& / cu+ c !eet, %n& the !"e ght ton #%'ue $%s L1,4A0) 7e%coco5 Co- & & not &ec'%"e th%t the #%'ue e;cee&e& L(00 %n& no %& #%'o"em !"e ght $%s 0% &) Octo+e" E, 1E1E I M%con&"%4 ten&e"e& to 7e%coc5 the %mount o! P<6-/6 $h ch $%s e9u #%'ent to the 0"o0o"t on%te !"e ght ton #%'ue o! the me"ch%n& se n 0%4ment o! 0'% nt !!:s c'% m- 7e%coc5 "e!use& to %cce0t such 0%4ment) Th s %ct on $%s commence& n the C6I +4 7e%coc5 to "eco#e" the %mount o! P420 0'us nte"est) The C6I "en&e"e& % &ec s on n %cco"&%nce $ th the c'%uses 9uote& !"om the + '' o! '%& ng- It o"&e"e& M%con&"%4 to 0%4 the %mount o! P226-02 to 7e%coc5, the %mount "e0"esent ng the n#o ce #%'ue o! the c'oc5s n 9uest on 0'us the !"e ght %n& nsu"%nce, $ th 'eg%' nte"est %n& costs o! the su t) ,oth 0%"t es %00e%'e& the C6I &ec s onPetitioners Claim: ) It s ent t'e& to "eco#e" !"om the &e!en&%nt the m%"5et #%'ue o! the c'oc5s %mount ng to P420) 7e%coc5 %"gues th%t the t$o c'%use n the + '' o! '%& ng %+o#e 9uote&, ' m t ng the ' %+ ' t4 o! the c%"" e", %"e cont"%"4 to 0u+' c o"&e" %n&, the"e!o"e, nu'' %n& #o &Respondents Comment: ) In %cco"&%nce $ th the + '' o! '%& ng, 7e%coc5 s ent t'e& to "eco#e" on'4 the sum o! P<6-/6, the 0"o0o"t on%te !"e ght ton #%'ue o! the s% & c'oc5s) The C6I e""e& n %00'4 ng the secon& 9uote& c'%use (c'%use E) !"om the + '' o! '%& ngISSUES 1- 3ON the st 0u'%t ons "eg%"& ng ' %+ ' t4 n the + '' o! '%& ng %"e #%' & 2- 3ON the C6I e""e& n %00'4 ng c'%use E to the c%se %t h%n& HELD 1- 8ES Ratio A ' m t%t on o! ' %+ ' t4 +%se& u0on %n %g"ee& #%'ue to o+t% n % 'o$e" "%te &oes not con!' ct $ th %n4 soun& 0" nc 0'e o! 0u+' c 0o' c4; %n& t s not con!o"m%+'e to 0'% n 0" nc 0'es o! ?ust ce th%t % sh 00e" m%4 un&e"st%te #%'ue n o"&e" to "e&uce the "%te %n& then "eco#e" % '%"ge" #%'ue n c%se o! 'ossReasoning ) Th"ee 5 n&s o! st 0u'%t ons h%#e o!ten +een m%&e n % + '' o! '%& ng%- The ! "st s one e;em0t ng the c%"" e" !"om %n4 %n& %'' ' %+ ' t4 !o" 'oss o" &%m%ge occ%s one& +4 ts o$n neg' gence+- The secon& s one 0"o# & ng !o" %n un9u%' ! e& ' m t%t on o! such ' %+ ' t4 to %n %g"ee& #%'u%t onc- The th "& s one ' m t ng the ' %+ ' t4 o! the c%"" e" to %n %g"ee& #%'u%t on un'ess the sh 00e" &ec'%"es % h ghe" #%'ue %n& 0%4s % h ghe" "%te o! !"e ght) Acco"& ng to %n %'most un !o"m $e ght o! %utho" t4, the ! "st %n& secon& 5 n&s o! st 0u'%t ons %"e n#%' & %s +e ng cont"%"4 to 0u+' c 0o' c4, +ut the th "& s #%' & %n& en!o"ce%+'e) C'%uses 1 %n& E !%'' $ th n the con! nes o! the th "& st 0u'%t on2- NO Ratio In const"u ng % + '' o! '%& ng g #en +4 the c%"" e" !o" the s%!e t"%ns0o"t%t on %n& &e' #e"4 o! goo&s sh 00e& +4 % cons gno", the

SHE&ARA# ' PHIL AIR LINES, INC 1< SCRA 606 MA1GIBAR; Du'4 <, 1E66 (5oo54)
NATURE Act on to "eco#e" &%m%ges FACTS ) P%"m%n%n& She$%"%m $%s on No# 2/, 1E(E, % 0%4 ng 0%ssenge" on PA1=s % "c"%!t !' ght No- E<6FE10 !"om M%m+o%ng% C t4 +oun& !o" M%n '%) on s% & &%te, he chec5e& n th"ee 0 eces o! +%gg%geH % su tc%se %n& t$o othe" 0 eces- The su tc%se $%s m st%gge& +4 PA1=s 0e"sonne' n M%m+o%ng% C t4, %s I-*-N- (!o" I' g%n) nste%& o! MN1 (!o" M%n '%)) 3hen She$%"%m %"" #e& n M%n '% on the s%me &%4, h s su tc%se & & not %"" #e $ th h s !' ght- 7e m%&e % c'% m $ th PA1=s 0e"sonne' n M%n '% % "0o"t- Anothe" su tc%se s m '%" to h s o$n I $h ch $%s the on'4 +%gg%ge 'e!t !o" th%t !' ght I $%s g #en to h m, +ut he "e!use& to %cce0t t, on the g"oun& th%t t $%s not h s- 7e %''ege& th%t h s su tc%se cont% ne& h s c'othes, $h ch $e"e %'' $h te, the N%t on%' t"%ns sto" <, %n& % Ro''!'e; c%me"%, %n& %&&e& th%t the su tc%se g #en to h m cont% ne& % 0 sto' $h ch $%s not h s) %!te" n9u " es m%&e +4 PA1=s 0e"sonne' n M%n '%, t $%s !oun& to h%#e "e%che& I' g%n- The st%t on %gent o! PA1 n I' g%n sent the su tc%se to M%n '% !o" &e' #e"4 to M"- She$%"%m- The su tc%se %"" #e& n M%n '% on No# 24, 1E(E- She$%"%m %g% n "e!use& to t%5e the su tc%se,%''eg ng th%t t +e'onge& to % ce"t% n Ge' Ros%" o $ho $%s +oun& !o" I' g%n n the s%me !' ght $ th M"- She$%"%m) 3hen the su tc%se %"" #e& n M%n '%, on No# 24, 1E(E, he $%s n!o"me& +4 M"- Tom%s ,'%nco, D"-, the %ct ng st%t on %gent o! the M%n '% % "0o"t, o! the %"" #%' o! h s su tc%se, +ut m nus h s T"%ns sto" R%& o < %n& the Ro''!'e;

22

TRANSPORTATION AND PUBLIC UTILITY LAW


C%me"%- She$%"%m m%&e &em%n& !o" these t$o tems o" !o" the #%'ue the"eo! +ut the s%me $%s not com0' e& $ th +4 PA1) She$%"%m nst tute& %n %ct on to "eco#e" &%m%ges su!!e"e& +4 h m &ue to the %''ege& !% 'u"e o! Ph ' 00 nes A " 1 nes, Inc- to o+se"#e e;t"%o"& n%"4 & ' gence n the # g '%nce %n& c%"" %ge o! h s 'ugg%ge) Trial Court: PA1 %&m tte& th%t the"e $%s m st%5e n t%gg ng the su tc%se- The t%m0e" ng s mo"e %00%"ent $hen on No# 24, 1E(E, $hen the su tc%se %"" #e& n M%n '%, PA1=s 0e"sonne' cou'& o0en the s%me n s0 te o! the !%ct th%t She$%"%m h%& t un&e" 5e4 $hen he &e' #e"e& the su tc%se to PA1=s 0e"sonne' n M%m+o%ng% C t4- Mo"eo#e", t $%s est%+' she& &u" ng the he%" ng th%t the"e $%s s0%ce n the su tc%se $he"e the t$o tems n 9uest on cou'& h%#e +een 0'%ce&- It $%s %'so sho$n th%t $hen She$%"%m $%s not ! e& +4 0hone o! the %"" #%' o! the su tc%se, he %s5e& th%t chec5 o! the th ngs ns &e h s su tc%se +e m%&e, %n& PA1 %&m tte& th%t the t$o tems cou'& not +e !oun& ns &e the su tc%se- PA1 h%& 0"esente& e# &ence th%t t h%& %utho" t4 to o0en 0%ssenge"s: +%gg%ge to #e" !4 %n& ! n& ts o$ne"sh 0 o" &ent t4- TC +e' e#es th%t these t$o tems $e"e "e%''4 n 0'% nt !!:s su tc%se %n& &e!en&%nt shou'& +e he'& ' %+'e !o" the s%me +4 # "tue o! ts cont"%ct o! c%"" %ge) T" %' Cou"t "en&e"e& ?u&gment o"&e" ng the PA1 to 0%4 She$%"%m %ctu%' (P/</) %n& e;em0'%"4 &%m%ges (P100), 0'us %tto"ne4=s !ees (P1(0) %n& costs- PA1 %00e%'e& to C6I, $h ch mo& ! e& the ?u&gment, &e'et ng %$%"& o! e;em0'%"4 &%m%ges) PA1 conten&s th%t ts ' %+ ' t4 shou'& +e ' m te& to the %mount st%te& n the con& t ons o! c%"" %ge 0" nte& %t the +%c5 o! the 0'%ne t c5et stu+ $h ch $%s ssue& to She$%"%m- These con& t ons %"e em+o& e& n Gomest c T%" !! Regu'%t ons No- 2 $h ch $%s ! 'e& $ th the C # ' Ae"on%ut cs ,o%"&- One o! those con& t ons 0"o# &es %s !o''o$sH The ' %+ ' t4, ! %n4, !o" 'oss o" &%m%ge to chec5e& +%gg%ge o" !o" &e'%4 n the &e' #e"4 the"eo! s ' m te& to ts #%'ue %n&, un'ess the 0%ssenge" &ec'%"es n %&#%nce % h ghe" #%'u%t on %n& 0%4 %n %&& t on%' charge therefor, the value shall be conclusively deemed not to e/ceed *100100 for each tic2et1 ) PA1 m% nt% ns th%t n # e$ o! the !% 'u"e o! She$%"%m to &ec'%"e % h ghe" #%'ue !o" h s 'ugg%ge, %n& 0%4 the !"e ght on the +%s s o! s% & &ec'%"e& #%'ue $hen he chec5e& such 'ugg%ge %t the M%m+o%ng% C t4 % "0o"t, 0u"su%nt to the %+o#e9uote& con& t on, he c%n not &em%n& 0%4ment !"om PA1 o! %n %mount n e;cess o! P100ISSUES 1- 3ON She$%"%m $%s +oun& +4 the 0"o# s ons o! the t%" !! "egu'%t ons ! 'e& +4 PA1 $ th the CA, %n& the con& t ons o! c%"" %ge 0" nte& %t the +%c5 o! the 0'%ne t c5et stu+2- 3ON the ' %+ ' t4 o! PA1 shou'& +e ' m te& to P100 HELD 1- NO Ratio Pecun %"4 ' %+ ' t4 o! % common c%"" e" m%4, +4 cont"%ct, +e ' m te& to % ! ;e& %mount- It s "e9u "e&, ho$e#e", th%t the cont"%ct must +e 2"e%son%+'e %n& ?ust un&e" the c "cumst%nces %n& h%s +een !% "'4 %n& !"ee'4 %g"ee& u0on-2 Reasoning The '%$ th%t m%4 +e n#o5e&, n th s connect on s A"t c'e 1<(0 o! the Ne$ C # ' Co&e $h ch 0"o# &es %s !o''o$sH

-A2010-

PROF. RODRIGO LOPE QUIMBO


ONG IU ' CA ,PAL" E1 SCRA 22/ ME1ENCIO)7ERRERA; Dune 2E, 1E<E (?%t)
NATURE Pet t on !o" "e# e$ on ce"t o"%" FACTS ) In o"&e" to %tten& % he%" ng n ,utu%n C t4 set !o" Aug- 2A)/1, Att4Augusto Ong 8 u (0et t one") +o%"&e& Ph '- A " 1 nes (PA1) !' ght 46/)R on Aug- 26 +oun& !o" ,utu%n !"om Ce+u- 7e chec5e& n one 0 ece o! 'ugg%ge, % +'ue Km%'et%> n $h ch he 5e0t the m0o"t%nt &ocuments he $ou'& nee& !o" the t" %'- P" nte& %t the +%c5 o! the 0'%ne t c5et "e%&sH 9The total liability of the -arrier for lost or damaged baggage of the .assenger is :()(T;< TO *100100 for each tic2et unless a .assenger declares a higher valuation in e/cess of *100100, but not in e/cess, however, of a total valuation of *1,000100 and additional charges are .aid .ursuant to -arrier's tariffs19 The 0'%ne 'e!t M%ct%n A "0o"t, Ce+u, %t %+out 10m, %n& %"" #e& %t ,%nc%s A "0o"t, ,utu%n %t 0%st 20m s%me &%4- C0on %"" #%', Ong 8 u c'% me& h s 'ugg%ge +ut cou'& not ! n& t- Acco"& ng to h m, t $%s on'4 %!te" "e%ct ng n& gn%nt'4 to the 'oss th%t the m%tte" $%s %tten&e& to +4 the 0o"te" c'e"5, M%; mo *ome., $h ch, ho$e#e", the '%tte" &en es) At %+out /0-m-, PA1 ,utu%n mess%ge& PA1 Ce+u n9u " ng %+out the m ss ng 'ugg%ge, $h ch mess%ge $%s, n tu"n, "e'%4e& n !u'' to the M%ct%n A "0o"t te'et40e o0e"%to" %t /H4( 0-m- PA1 M%n '% then n!o"me& PA1 Ce+u th%t the 'ugg%ge h%& +een o#e"c%"" e& to M%n '% %+o%"& %nothe" !' ght %n& th%t t $ou'& +e !o"$%"&e& to Ce+u on 6' ght /4( the s%me &%4- Inst"uct ons $e"e %'so g #en th%t the 'ugg%ge +e mme& %te'4 !o"$%"&e& to ,utu%n C t4 on the ! "st %#% '%+'e !' ght- At (0-m- o! the s%me %!te"noon, PA1 Ce+u sent % mess%ge to PA1 ,utu%n th%t the 'ugg%ge $ou'& +e !o"$%"&e& on 6' ght E6/ the !o''o$ ng &%4, Aug-2<- Cn!o"tun%te'4, th s mess%ge $%s not "ece #e& +4 PA1 ,utu%n +ec%use %'' ts 0e"sonne' h%& %'"e%&4 'e!t s nce the"e $e"e no mo"e ncom ng !' ghts th%t %!te"noon) At 100-m-, Ong 8 u $ "e& PA1 Ce+u &em%n& ng the &e' #e"4 o! h s +%gg%ge +e!o"e noon the ne;t &%4, othe"$ se, he $ou'& ho'& PA1 ' %+'e !o" &%m%ges, st%t ng th%t PA1=s g"oss neg' gence h%& c%use& h m un&ue ncon#en ence, $o""4, %n; et4 %n& e;t"eme em+%""%ssment- Th s te'eg"%m $%s "ece #e& +4 the Ce+u PA1 su0e"# so" +ut the '%tte" !e't no nee& to $ "e Ong 8 u th%t h s 'ugg%ge h%& %'"e%&4 +een !o"$%"&e& on the %ssum0t on th%t +4 the t me the mess%ge "e%che& ,utu%n C t4, the 'ugg%ge $ou'& h%#e %"" #e&) E%"'4 mo"n ng o! Aug-2<, Ong 8 u $ent to the ,%nc%s A "0o"t to n9u "e %+out h s 'ugg%ge +ut he h%& %'"e%&4 'e!t +4 the t me the !' ght c%""4 ng h s 'ugg%ge %"" #e& %t 10 %-m- The 0o"te" c'e"5, M%; mo *ome., 0%ge& Ong 8 u, +ut he $%s no 'onge" n the % "0o"t- A ce"t% n Em ' o G%go""o (Ong 8 u:s &" #e" $hene#e" he:s n ,utu%n), #o'untee"e& to t%5e the 'ugg%ge to Ong 8 u- As M%; mo *ome. "ecogn .e& G%go""o

A contract fi/ing the sum that may be recovered by the owner or shi..er for the loss, destruction, or deterioration of the goods is valid, if it is reasonable and 3ust under the circumstances, and has been fairly and freely agreed u.on1 ) The "e9u "ements 0"o# &e& n A"t c'e 1<(0 o! the Ne$ C # ' Co&e must +e com0' e& $ th +e!o"e % common c%"" e" c%n c'% m % ' m t%t on o! ts 0ecun %"4 ' %+ ' t4 n c%se o! 'oss, &est"uct on o" &ete" o"%t on o! the goo&s t h%s un&e"t%5en to t"%ns0o"t- These h%#e not +een met n th s c%se- The !%ct th%t those con& t ons %"e 0" nte& %t the +%c5 o! the t c5et stu+ n 'ette"s so sm%'' th%t the4 %"e h%"& to "e%& $ou'& not $%""%nt the 0"esum0t on th%t She$%"%m $%s %$%"e o! those con& t ons such th%t he h%& 2!% "'4 %n& !"ee'4 %g"ee&2 to those con& t ons- PA1 %&m tte& th%t 0%ssenge"s &o not s gn the t c5et2- NO Ratio A c%"" e" c%n not ' m t ts ' %+ ' t4 !o" n?u"4 to o" 'oss o! goo&s sh 00e& $he"e such n?u"4 o" 'oss $%s c%use& +4 ts o$n neg' genceReasoning The t" %' cou"t !oun& th%t the su tc%se o! the She$%"%m $%s t%m0e"e&, %n& the t"%ns sto" "%& o %n& the c%me"% cont% ne& the"e n $e"e 'ost, %n& th%t the 'oss o! those %"t c'es $%s &ue to the neg' gence o! the em0'o4ees o! PA1- The e# &ence sho$ th%t the t"%ns sto" "%& o cost P1E< %n& the c%me"% cost P1<6, so the tot%' #%'ue o! the t$o %"t c'es $%s P/</) PA1 s % common c%"" e"- As such common c%"" e", PA1, !"om the n%tu"e o! ts +us ness %n& !o" "e%sons o! 0u+' c 0o' c4, s +oun& to o+se"#e e;t"%o"& n%"4 & ' gence n the # g '%nce o#e" the goo&s %n& !o" the s%!et4 o! the 0%ssenge"s t"%ns0o"te& +4 t %cco"& ng to the c "cumst%nces o! e%ch c%se- It h%# ng +een sho$n th%t the 'oss o! the t"%ns sto" "%& o %n& the c%me"%, cost ng P/</-00, $%s &ue to the neg' gence o! ts em0'o4ees, t s c'e%" th%t the %00e''%nt shou'& +e he'& ' %+'e !o" the 0%4ment o! s% & 'oss) The ' %+ ' t4 o! the PA1 n the 0"esent c%se shou'& +e go#e"ne& +4 the 0"o# s ons o! A"t c'es 1</4 %n& 1</( o! the Ne$ C # ' Co&eH ART. 1734. -ommon carries are res.onsible for the loss, destruction, or deterioration of the goods, unless the same is due to any of the following causes only4 (1) &lood, storm, earth,ua2e, or other natural disaster or calamity5 ($) Act of the .ublic enemy in war, whether international or civil5 (6) Act or omission of the shi..er or owner of the goods5 (#) The character of the goods or defects in the .ac2ing or in the containers5 (7) Order or act of com.etent .ublic authority ART. 1735. (n all cases other than those mentioned in os1 1, $, 6, # and 7 of the .receding article, if the goods are lost, destroyed or deteriorated, common carriers are .resumed to have been at fault or to have acted negligently, unless they .rove that they observed e/traordinary diligence as re,uired in Article 1%661 ) 8smael and -o1 vs1 BarretoH the c%"" e" c%n not ' m t ts ' %+ ' t4 !o" n?u"4 to o" 'oss o! goo&s sh 00e& $he"e such n?u"4 o" 'oss $%s c%use& +4 ts o$n neg' gence- (The SC c te& Co"0us Du" s n e;0'% n ng the "%t o o! 8sm%e' # ,%""eto- Om tte& n th s & gest, %s t me"e'4 e;0oun&s $h%t s s% & n the C # ' Co&e 0"o# s ons %+o#e-) D()po)(*(o+ Gec s on %!! "me&

23

TRANSPORTATION AND PUBLIC UTILITY LAW


to +e Ong 8 u:s &" #e", he too5 the 'ugg%ge %n& 0'%ce& t on the counte"G%go""o e;%m ne& the 'oc5, 0"esse& t, %n& t o0ene&- A!te" c%'' ng the %ttent on o! M%; mo *ome., the Km%'et%> $%s o0ene&, *ome. too5 % 'oo5 %t ts contents, +ut & & not touch them- G%go""o then &e' #e"e& the Km%'et%> to Ong 8 u, $ th the n!o"m%t on th%t the 'oc5 $%s o0en- C0on ns0ect on, Ong 8 u !oun& th%t % !o'&e" cont% n ng ce"t% n e;h + ts, t"%nsc" 0ts %n& 0" #%te &ocuments n C # ' C%se No- 100( %n& S0P"ocs- No- 1126 $e"e m ss ng, %s &e !"om t$o g !t tems !o" h s 0%"ents) n)'%$- Ong 8 u "e!use& to %cce0t the 'ugg%ge- G%go""o "etu"ne& t to the 0o"te" c'e"5, M%; mo *ome., $ho se%'e& t %n& !o"$%"&e& the s%me to PA1 Ce+u- Me%n$h 'e, Ong 8 u %s5e& !o" 0ost0onement o! the he%" ng o! C # ' C%se 100( &ue to 'oss o! h s &ocuments, $h ch $%s g"%nte& +4 the Cou"t- Ong 8 u "etu"ne& to Ce+u C t4 on Aug-2A- In % 'ette" &%te& Aug-2E, 1E6< %&&"esse& to PA1 Ce+u, Ong 8 u c%''e& %ttent on to h s te'eg"%m, &em%n&e& th%t h s 'ugg%ge +e 0"o&uce& nt%ct, %n& th%t he +e com0ens%te& n the sum o! P2(0,000 !o" %ctu%' %n& mo"%' &%m%ges $ th n ( &%4s !"om "ece 0t o! the 'ette", othe"$ se, he $ou'& +e 'e!t $ th no %'te"n%t #e +ut to ! 'e % su t- On Aug-/1, Mess"s- &e 1eon, N%#%"s , %n& Agust n, %'' o! PA1 Ce+u, $ent to Ong 8 u=s o!! ce to &e' #e" the Km%'et%>- In the 0"esence o! M"- Dose 8%0 %n& Att4- M%nue' M%"%ng%, the contents $e"e ' ste& %n& "ece 0te& !o" +4 Ong 8 u- On Se0t- (, Ong 8 u sent % t"%ce" 'ette" to PA1 Ce+u n9u " ng %+out the "esu'ts o! the n#est g%t on $h ch Mess"s- &e 1eon, N%#%"s %n& Agust n h%& 0"om se& to con&uct to 0 n0o nt "es0ons + ' t4 !o" the un%utho" .e& o0en ng o! the Km%'et%>- The ne;t &%4, PA1 Ce+u sent Ong 8 u % 'ette" n!o"m ng h m th%t the"e h%& +een no 0"og"ess 4et %s to ts n#est g%t on) On Se0t-1/, Ong 8 u ! 'e& % Com0'% nt %g% nst PA1 !o" &%m%ges !o" +"e%ch o! cont"%ct o! t"%ns0o"t%t on $ th the C6I Ce+u, $h ch PA1 t"%#e"se&- A!te" &ue t" %', the 'o$e" Cou"t !oun& PA1 to h%#e %cte& n +%& !% th %n& $ th m%' ce %n& &ec'%"e& 0et t one" ent t'e& to mo"%' &%m%ges n the gum o! PA0,000, e;em0'%"4 &%m%ges o! P/0,000, %tto"ne4=s !ees o! P(,000, %n& costs- ,oth 0%"t es %00e%'e& to the CA (Ong 8 u $%s not s%t s! e& $ th the %$%"& !o" mo"%' &%m%ges)- On Aug-22, the CA, ! n& ng th%t PA1 $%s gu 't4 on'4 o! s m0'e neg' gence, "e#e"se& the ?u&gment o! the t" %' cou"t g"%nt ng Ong 8 u mo"%' %n& e;em0'%"4 &%m%ges, +ut o"&e"e& PA1 to 0%4 Ong 8 u the sum o! P100, the +%gg%ge ' %+ ' t4 %ssume& +4 t un&e" the con& t on o! c%"" %ge 0" nte& %t the +%c5 o! the t c5et- 7ence, th s c%seISSUES 1- 3ON PA1 %cte& n +%& !% th n the +"e%ch o! ts cont"%ct o! t"%ns0o"t%t on 2- 3ON the CA e""e& n %$%"& ng on'4 P100 %s o00ose& to the %$%"& !o" &%m%ges g"%nte& +4 the 'o$e" cou"tHELD 1- NOIt $%s on'4 s m0'e neg' gence, not +%& !% th- ,%& !% th me%ns % +"e%ch o! 5no$n &ut4 th"ough some mot #e o! nte"est o" '' $ ''- It $%s PA1:s &ut4 to 'oo5 !o" 0et t one":s 'ugg%ge $h ch h%& +een m sc%"" e& %n& PA1 e;e"te& &ue & ' gence n com0'4 ng $ th such &ut4Reasoning The !% 'u"e o! PA1 Ce+u to "e0'4 to Ong 8 u=s "ush te'eg"%m s not n& c%t #e o! +%& !% th- The te'eg"%m $%s & s0%tche& +4 0et t one"

-A2010-

PROF. RODRIGO LOPE QUIMBO


e;h + t on n the CS- It $%s %'so the " %g"eement th%t 0'% nt !! $ou'& 0"o# &e the necess%"4 0"omot on%' %n& %&#e"t s ng m%te" %'s !o" s% & ! 'ms) On h s $%4 home to the Ph ' 00 nes, P%ng%n # s te& *u%m $he"e he ' 5e$ se ente"e& nto % #e"+%' %g"eement !o" the e;h + t on o! t$o o! the ! 'ms %t the 7%!% A&% The%te" n *u%m- P%ng%n un&e"too5 to 0"o# &e the necess%"4 0"omot on%' %n& %&#e"t s ng m%te" %'s !o" s% & ! 'ms) P%ng%n c%use& the 0"e0%"%t on o! the "e9u s te 0"omot on%' h%n&+ ''s %n& st '' 0 ctu"es !o" $h ch he 0% & the tot%' sum o! P12,E00-00- 1 5e$ se n 0"e0%"%t on !o" h s t" 0 %+"o%& to com0'4 $ th h s cont"%cts, 0'% nt !! P%ng%n 0u"ch%se& 14 c'utch +%gs, 4 c%0 . '%m0s %n& 4 +%"ong t%g%'og, $ th % tot%' #%'ue o! P4,400-00) M%4 1A, 1E<A, 0'% nt !! P%ng%n o+t% ne& !"om P%n Am:s M%n '% O!! ce %n econom4 c'%ss t c5et !o" 0%ss%ge !"om M%n '% to *u%m) M%4 2<, 1E<A, P%ng%n chec5e& n h s t$o 'ugg%ges- The t$o 'ugg%ges cont% ne& the 0"omot on%' %n& %&#e"t s ng m%te" %'s, the c'utch +%gs, +%"ong t%g%'og %n& h s 0e"son%' +e'ong ngs- Su+se9uent'4, P%ng%n $%s n!o"me& th%t h s n%me $%s not n the m%n !est %n& so he cou'& not t%5e the !' ght- S nce the"e $%s no s0%ce n the econom4 c'%ss, 0'% nt !! P%ng%n too5 the ! "st c'%ss +ec%use he $%nte& to +e on t me n *u%m to com0'4 $ th h s comm tment, 0%4 ng %n %&& t on%' sum o! L112-00) 3hen P%ng%n %"" #e& n *u%m h s t$o 'ugg%ges & & not %"" #e $ th h s !' ght, %s % conse9uence o! $h ch h s %g"eements $ th S'utchn c5 %n& Nues%&% !o" the e;h + t on o! the ! 'ms n *u%m %n& n the Cn te& St%tes $e"e c%nce''e&- ) On the +%s s o! these !%cts, the C6I !oun& 0et t one" ' %+'e- On %00e%', the IAC %!! "me& the t" %' cou"t &ec s onISSUES 1- 3ON the IAC e""e& n %!! "m ng the t" %' cou"t:s %$%"& o! %ctu%' &%m%ges +e4on& the ' m t%t on o! ' %+ ' t4 set !o"th n the 3%"s%$ Con#ent on %n& the cont"%ct o! c%"" %ge2- 3ON the IAC e""e& n %!! "m ng the t" %' cou"t:s %$%"& o! %ctu%' &%m%ges cons st ng o! %''ege& 'ost 0"o! ts n the !%ce o! th s Cou"t:s "u' ng conce"n ng s0ec %' o" conse9uent %' &%m%ges %s set !o"th n Men&o.% #- Ph ' 00 ne A "' nesHELD 1- 8ES 3e ! n& the "u' ng n Ong 8 u s9u%"e'4 %00' c%+'e to the nst%nt c%se- In s% & c%se, the Cou"t st%te&H --- There is no dis.ute that .etitioner did not declare any higher value for his luggage, much less did he .ay any additional trans.ortation charge1 But .etitioner argues that there is nothing in the evidence to show that he had actually entered into a contract with *A: limiting the latter's liability for loss or delay of the baggage of its .assengers, and that Article 1%70 of the -ivil -ode has not been com.lied with1 =hile it may be true that .etitioner had not signed the .lane tic2et, he is nevertheless bound by the .rovisions thereof1 9Such .rovisions have been held to be a .art of the contract of carriage, and valid and binding u.on the .assenger regardless of the latter's lac2 of 2nowledge or assent to the regulation19 (t is what is 2nown as a contract of 9adhesion,91119a contract limiting liability u.on an agreed valuation does not offend against the .olicy of the law forbidding one from contracting against his own negligence19 -onsidering, therefore, that .etitioner had

%t %"oun& 10H00 0-m- o! 26 August 1E6<- The PA1 su0e"# so" %t M%ct%n A "0o"t $%s not ! e& o! t on'4 n the mo"n ng o! the !o''o$ ng &%4- At th%t t me the 'ugg%ge $%s %'"e%&4 to +e !o"$%"&e& to ,utu%n C t4- The"e $%s no +%& !% th n the %ssum0t on m%&e +4 s% & su0e"# so" th%t the 0'%ne c%""4 ng the +%g $ou'& %"" #e %t ,utu%n e%"' e" th%n % "e0'4 te'eg"%m- 7%& Ong 8 u $% te& o" c%use& someone to $% t %t the ,%nc%s % "0o"t !o" the %"" #%' o! the mo"n ng !' ght, he $ou'& h%#e +een %+'e to "et" e#e h s 'ugg%ge soone"2- NO- S nce 0et t one" !% 'e& to &ec'%"e % h ghe" #%'ue !o" h s +%gg%ge, he c%nnot +e 0e"m tte& % "eco#e"4 n e;cess o! P100The 0'%ne t c5et s % cont"%ct o! %&hes on- The one $ho %&he"es to the cont"%ct s n "e%' t4 !"ee to "e?ect t ent "e'4 +ut ! he %&he"es, he g #es h s consentReasoning The CA 0"o0e"'4 "e%sone& out thusH 2A'though t s 0"esume& th%t PA1 h%& +een neg' gent &ue to the !%ct th%t the m%'et% $%s 'ost $h 'e n ts custo&4, PA1:s ' %+ ' t4 !o" the 'oss, n %cco"&%nce $ th the st 0u'%t on $" tten on the +%c5 o! the t c5et, s ' m te& to P100 0e" +%gg%ge, 0'% nt !! not h%# ng &ec'%"e& % g"e%te" #%'ue, %n& not h%# ng c%''e& the %ttent on o! the &e!en&%nt on ts t"ue #%'ue %n& 0% & the t%" !! the"e!o"- The #%' & t4 o! the st 0u'%t on s not 9uest one& +4 0'% nt !!- The4 %"e 0" nte& n "e%son%+'4 %n& !% "'4 + g 'ette"s %n& %"e e%s '4 "e%&%+'e- Mo"eo#e", 0'% nt !! h%& +een % !"e9uent 0%ssenge" o! PA1 %n& he, +e ng % '%$4e" %n& % +us nessm%n, must +e !u''4 %$%"e o! such con& t ons-2 The SC %&&e&H %'though 0et t one" h%& not s gne& the 0'%ne t c5et, he s ne#e"the'ess +oun& +4 the 0"o# s ons the"eo!- Such 0"o# s ons h%#e +een he'& to +e % 0%"t o! the cont"%ct o! c%"" %ge, %n& #%' & %n& + n& ng u0on the 0%ssenge" "eg%"&'ess o! the '%tte":s '%c5 o! 5no$'e&ge o" %ssent to the "egu'%t on- It s $h%t s 5no$n %s % cont"%ct o! 2%&hes on,2 n "eg%"&s o! $h ch t h%s +een s% & th%t cont"%cts o! %&hes on $he"e n one 0%"t4 m0oses % "e%&4 m%&e !o"m o! cont"%ct on the othe", %s the 0'%ne t c5et n the c%se %t +%", %"e cont"%cts not ent "e'4 0"oh + te&- As he'& n R%n&o'0h # Ame" c%n A "' nes %n& Rosenche n # T"%ns 3o"'& A "' nes, 2% cont"%ct ' m t ng ' %+ ' t4 u0on %n %g"ee& #%'u%t on &oes not o!!en& %g% nst the 0o' c4 o! the '%$ !o"+ && ng one !"om cont"%ct ng %g% nst h s o$n neg' gence-2 Disposition Pet t on GENIEG !o" '%c5 o! me" t-

PAN A#ERICAN &ORLD AIR&A S, INC VS IAC ,PANGAN" 164 SCRA 26A CORTES; August 11, 1EAA (e#%)
NATURE Pet t on ! 'e& +4 P%n Am see5 ng to ' m t ts ' %+ ' t4 !o" 'ost +%gg%ge to the %mount s0ec ! e& n the % "' ne t c5et %+sent % &ec'%"%t on o! % h ghe" #%'u%t on %n& the 0%4ment o! %&& t on%' ch%"gesFACTS ) A0" ' 2(, 1E<A, 0'% nt !! Rene B- P%ng%n ente"e& nto %n %g"eement $he"e+4 he +oun& h mse'! to su00'4 % ! 'm com0%n4 $ th th"ee ! 'ms !o"

24

TRANSPORTATION AND PUBLIC UTILITY LAW


failed to declare a higher value for his baggage, he cannot be .ermitted a recovery in e/cess of *1001001111 Reasoning The % "' ne t c5et cont% ns the !o''o$ ng con& t onsH OT(-;4 (f the .assenger's 3ourney involves an ultimate destination or sto. in a country other than the country of de.arture the =arsaw -onvention may be a..licable and the -onvention governs and in most cases limits the liability of carriers for death or .ersonal in3ury and in res.ect of loss of or damage to baggage1 See also notice headed 9Advice to (nternational *assengers on :imitation of :iability1 -O <(T(O S O& -O T>A-T4 /// $1 -arriage hereunder is sub3ect to the rules and limitations relating to liability established by the =arsaw -onvention unless such carriage is not 9international carriage9 as defined by that -onvention1 /// /// /// OT(-; O& BA??A?; :(AB(:(T8 :()(TAT(O S4 :iability for loss, delay, or damage to baggage is limited as follows unless a higher value is declared in advance and additional charges are .aid4 (1)for most international travel (including domestic .ortions of international 3ourneys) to a..ro/imately @A10% .er .ound (@$0100 .er 2ilo) for chec2ed baggage and @#00 .er .assenger for unchec2ed baggage4 ($) for travel wholly between B1S1 .oints, to @%70 .er .assenger on most carriers (a few have lower limits)111 ) On the +%s s o! the !o"ego ng st 0u'%t ons 0" nte& %t the +%c5 o! the t c5et, 0et t one" conten&s th%t ts ' %+ ' t4 !o" the 'ost +%gg%ge o! P%ng%n s ' m te& to L600-00 (L20-00 ; /0 5 'os) %s the '%tte" & & not &ec'%"e % h ghe" #%'ue !o" h s +%gg%ge %n& 0%4 the co""es0on& ng %&& t on%' ch%"ges) the "u' ng n She$%"%m #- PA1 $he"e the Cou"t he'& th%t the st 0u'%t on ' m t ng the c%"" e":s ' %+ ' t4 to % s0ec ! e& %mount $%s n#%' &, ! n&s no %00' c%t on n the nst%nt c%se, %s the "u' ng n s% & c%se $%s 0"em se& on the ! n& ng th%t the con& t ons 0" nte& %t the +%c5 o! the t c5et $e"e so sm%'' %n& h%"& to "e%& th%t the4 $ou'& not $%""%nt the 0"esum0t on th%t the 0%ssenge" $%s %$%"e o! the con& t ons %n& th%t he h%& !"ee'4 %n& !% "'4 %g"ee& the"eto) At th s ?unctu"e, n o"&e" to "ect !4 ce"t% n m sconce0t ons the Cou"t ! n&s t necess%"4 to st%te th%t the CA:s "e' %nce on % 9uot%t on !"om No"th$est A "' nes, Inc- #- Cuenc% to sust% n the # e$ th%t 2to %00'4 the 3%"s%$ Con#ent on $h ch ' m ts % c%"" e":s ' %+ ' t4 to CSLE-0< 0e" 0oun& o" CSL20-00 0e" 5 'o n c%ses o! cont"%ctu%' +"e%ch o! c%"" %ge @@ s %g% nst 0u+' c 0o' c42 s utte"'4 m s0'%ce&, to s%4 the 'e%st- In s% & c%se, $h 'e the Cou"t, %s 9uote& n the IAC:s &ec s on, s% &H *etitioner argues that .ursuant to those .rovisions, an air 9carrier is liable only9 in the event of death of a .assenger or in3ury suffered by him, or of destruction or loss of, or damages to any chec2ed baggage or any goods, or of delay in the trans.ortation by air of .assengers, baggage or goods1 This .retense is not borne out by the language of said Articles1 The same merely declare the carrier liable for damages in enumerated cases, if the conditions therein s.ecified are .resent1 either said .rovisions nor others in the aforementioned -onvention regulate or e/clude liability for other breaches of contract by the carrier1 Bnder .etitioner's theory, an air carrier would be e/em.t from any liability for damages in the event of its absolute refusal, in bad faith, to com.ly with a contract of carriage, which is absurd1 t 0"e!%ce& th s st%tement +4 e;0'% n ng th%tH

-A2010-

PROF. RODRIGO LOPE QUIMBO


CATHA PACIFIC AIR&A S, LTD, '). CA a+- TO#AS 1- A1CANTARA, 21E SCRA (20 ,E11OSI11O, D 1EE/ (+"4%n s?)
NATURE Pet t on !o" "e# e$ on ce"t o"%" o! the &ec s on o! the Cou"t o! A00e%'s $h ch %!! "me& $ th mo& ! c%t on th%t o! the t" %' cou"t +4 nc"e%s ng the %$%"& o! &%m%ges n !%#o" o! 0" #%te "es0on&ent Tom%s 1- A'c%nt%"%FACTS On 1E Octo+e" 1E<(, "es0on&ent Tom%s 1- A'c%nt%"% $%s % f(r)* ./a)) pa))e+ger of pe*(*(o+er Ca*0a1 Pa.(f(. A(r2a1) , 1t&- (CAT7A8 !o" +"e# t4) on ts 6' ght No- CO)E00 !"om M%n '% to 7ong5ong %n& on$%"& !"om 7ong5ong to D%5%"t% on 6' ght No- CO)<11- The 0u"0ose o! h s t" 0 $%s to %tten& the !o''o$ ng &%4, 20 Octo+e" 1E<(, % con!e"ence $ th the G "ecto" *ene"%' o! T"%&e o! In&ones %, A'c%nt%"% +e ng the E;ecut #e B ce)P"es &ent %n& *ene"%' M%n%ge" o! I' g%n Cement Co"0o"%t on, Ch% "m%n o! the E;0o"t Comm ttee o! the Ph ' 00 ne Cement Co"0o"%t on, %n& "e0"esent%t #e o! the Cement In&ust"4 Autho" t4 %n& the Ph ' 00 ne Cement Co"0o"%t on- 7e chec5e& n h s 'ugg%ge $h ch cont% ne& not on'4 h s c'oth ng %n& %"t c'es !o" 0e"son%' use 34* a/)o paper) a+- -o.4me+*) 0e +ee-e- for *0e .o+fere+.e. C0on h s %"" #%' n D%5%"t%, "es0on&ent & sco#e"e& th%t h s 'ugg%ge $%s m ss ng- 3hen he n9u "e& %+out h s 'ugg%ge !"om CAT7A8:s "e0"esent%t #e n D%5%"t%, 0" #%te "es0on&ent $%s to'& th%t h s 'ugg%ge $%s 'e!t +eh n& n 7ong5ong- 6o" th s, "es0on&ent A'c%nt%"% $%s o!!e"e& L20-00 %s 2 ncon#en ence mone42 to +u4 h s mme& %te 0e"son%' nee&s unt ' the 'ugg%ge cou'& +e &e' #e"e& to h m- 7 s 'ugg%ge ! n%''4 "e%che& D%5%"t% mo"e th%n t$ent4 !ou" (24) hou"s %!te" h s %"" #%'- Ho2e'er, (* 2a) +o* -e/('ere- *o 0(m a* 0() 0o*e/ 34* 2a) re54(re- 31 pe*(*(o+er *o 3e p(.6e- 4p 31 a+ off(.(a/ of *0e P0(/(pp(+e Em3a))1. On 1 M%"ch 1E<6, "es0on&ent ! 'e& h s com0'% nt %g% nst 0et t one" $ th the Cou"t o! 6 "st Inst%nce (no$ Reg on%' T" %' Cou"t) o! 1%n%o &e' No"te 0"%4 ng !o" tem0e"%te, mo"%' %n& e;em0'%"4 &%m%ges, 0'us %tto"ne4:s !ees- On 1A A0" ' 1E<6, the t" %' cou"t "en&e"e& ts &ec s on o"&e" ng CAT7A8 to 0%4 P'% nt !! P78,888.88 for mora/ -amage), P9,888.88 for *empera*e -amage), P:8,888.88 for e;emp/ar1 -amage), a+P79,888.88 for a**or+e1<) fee), a+- *0e .o)*) - ,oth 0%"t es %00e%'e& to the Cou"t o! A00e%'s- A'c%nt%"% %ss gne& %s e""o" the !% 'u"e o! the t" %' cou"t to g"%nt the !u'' %mount o! &%m%ges sought n h s com0'% ntOn 11 No#em+e" 1EA1, "es0on&ent Cou"t o! A00e%'s "en&e"e& ts &ec s on %!! "m ng the ! n& ngs o! !%ct o! the t" %' cou"t +ut mo& !4 ng ts %$%"& 31 (+.rea)(+g *0e mora/ -amage) *o P=8,888.88, e;emp/ar1 -amage) *o P78,888.88 a+- *empera*e or mo-era*e -amage) *o P:8,888.88. T0e a2ar- of P79,888.88 for a**or+e1<) fee) 2a) ma(+*a(+e--

111The case is now before us on .etition for review by certiorari, u.on the ground that the lower court has erred4 (1) in holding that the =arsaw -onvention of October 1$, 1A$A, relative to trans.ortation by air is not in force in the *hili..ines4 ($) in not holding that res.ondent has no cause of action5 and (6) in awarding *$0,000 as nominal damages1 =e deem it unnecessary to .ass u.on the &irst assignment of error because the same is the basis of the second assignment of error, and the latter is devoid of merit, even if we assumed the former to be well ta2en1 ) Thus, t s 9u te c'e%" th%t the Cou"t ne#e" nten&e& to, %n& n !%ct ne#e" & &, "u'e %g% nst the #%' & t4 o! 0"o# s ons o! the 3%"s%$ Con#ent on- Conse9uent'4, +4 no st"etch o! the m%g n%t on m%4 s% & 9uot%t on !"om No"th$est +e cons &e"e& %s su00o"t #e o! the %00e''%te cou"t:s st%tement th%t the 0"o# s ons o! the 3%"s%$ Con#ent on ' m te& % c%"" e":s ' %+ ' t4 %"e %g% nst 0u+' c 0o' c42- 8ES The "u'e '% & &o$n n )endoCa v1 *A: c%nnot +e %n4 c'e%"e"H 111Bnder Art1110% of the -ivil -ode, a debtor in good faith li2e the defendant herein, may be held liable only for damages that were foreseen or might have been foreseen at the time the contract of trans.ortation was entered into1 The trial court correctly found that the defendant com.any could not have foreseen the damages that would be suffered by )endoCa u.on failure to deliver the can of film on the for the reason that the .lans of )endoCa to e/hibit that film during the town fiesta and his .re.arations, s.ecially the announcement of said e/hibition by .osters and advertisement in the news.a.er, were not called to the defendant's attention1 ) In % c%se #e"4 s m '%" to the 0"esent c%se, -ha.man vs1 &argo (% Ne$ 8o"5 c%se), t $%s he'& th%t K--- n o"&e" to 0u"0ose on the &e!%u't ng 0%"t4 !u"the" ' %+ ' t4 th%n !o" &%m%ges n%tu"%''4 %n& & "ect'4, -e-, n the o"& n%"4 cou"se o! th ngs, %" s ng !"om % +"e%ch o! cont"%ct, such unusu%' o" e;t"%o"& n%"4 &%m%ges must h%#e +een +"ought $ th n the contem0'%t on o! the 0%"t es %s the 0"o+%+'e "esu't o! +"e%ch %t the t me o! o" 0" o" to cont"%ct ng-> ) Thus, %00'4 ng the !o"ego ng "u' ng, n the %+sence o! % sho$ ng th%t 0et t one":s %ttent on $%s c%''e& to the s0ec %' c "cumst%nces "e9u " ng 0"om0t &e' #e"4 o! P%ng%n:s 'ugg%ges, 0et t one" c%nnot +e he'& ' %+'e !o" the c%nce''%t on o! 0" #%te "es0on&ents: cont"%cts %s t cou'& not h%#e !o"eseen such %n e#entu%' t4 $hen t %cce0te& the 'ugg%ges !o" t"%ns t) P%ng%n h%& not &ec'%"e& the #%'ue o! the t$o 'ugg%ges he h%& chec5e& n %n& 0% & %&& t on%' ch%"ges- Ne the" $%s 0et t one" 0" #4 to "es0on&ents: cont"%cts no" $%s ts %ttent on c%''e& to the con& t on the"e n "e9u " ng &e' #e"4 o! the 0"omot on%' %n& %&#e"t s ng m%te" %'s on o" +e!o"e % ce"t% n &%teDISPOSITIVE 37ERE6ORE, the Pet t on s he"e+4 *RANTEG--- %n& % ne$ ?u&gment s "en&e"e& o"&e" ng 0et t one" to 0%4 0" #%te "es0on&ents &%m%ges n the %mount o! CS L600-00 o" ts e9u #%'ent n Ph ' 00 ne cu""enc4 %t the t me o! %ctu%' 0%4ment-

25

TRANSPORTATION AND PUBLIC UTILITY LAW


ISSUES 13ON C%th%4 P%c ! c +"e%che& the cont"%ct o! c%"" %ge23ON he s ent t'e& to MORA1 GAMA*ES/3ON the %mount o! ' %+ ' t4 o! C%th%4 shou'& +e ' m te& to those e;0"esse& n the 3ARSA3 CONBENTIONHELD 1- ES. RATIO Pet t one" +"e%che& ts cont"%ct o! c%"" %ge $ th 0" #%te "es0on&ent $hen t !% 'e& to &e' #e" h s 'ugg%ge %t the &es gn%te& 0'%ce %n& t me, (* 3e(+g *0e o3/(ga*(o+ of a .ommo+ .arr(er *o .arr1 (*) pa))e+ger) AND THEIR LUGGAGE )afe/1 *o *0e(r -e)*(+a*(o+, 20(.0 (+./4-e) *0e -4*1 +o* *o -e/a1 *0e(r *ra+)por*a*(o+, a+- *0e e'(-e+.e )0o2) *0a* pe*(*(o+er a.*e- fra4-4/e+*/1 or (+ 3a- fa(*0. 2- ES RATIO Mo"%' &%m%ges 0"e& c%te& u0on % +"e%ch o! cont"%ct o! c%"" %ge m%4 on'4 +e "eco#e"%+'e n nst%nces $he"e (1) *0e m()0ap re)4/*) (+ -ea*0 of a pa))e+ger, or ,7" 20ere *0e .arr(er () g4(/*1 of fra4- or 3a- fa(*0. REASONING In the c%se %t +%", +oth the t" %' cou"t %n& the %00e''%te cou"t !oun& th%t CAT7A8 $%s g"oss'4 neg' gent %n& "ec5'ess $hen t !% 'e& to &e' #e" the 'ugg%ge o! 0et t one" %t the %00o nte& 0'%ce %n& t me- 3e %g"eeCAT7A8 %''eges th%t %s % "esu't o! mech%n c%' t"ou+'e, %'' 0 eces o! 'ugg%ge on +o%"& the ! "st % "c"%!t +oun& !o" D%5%"t% $e"e un'o%&e& %n& t"%ns!e""e& to the secon& % "c"%!t $h ch &e0%"te& %n hou" %n& % h%'! '%te"- 8et, %s the Cou"t o! A00e%'s note&, pe*(*(o+er 2a) +o* e'e+ a2are *0a* (* /ef* 3e0(+- pr('a*e re)po+-e+*<) /4ggage 4+*(/ (*) a**e+*(o+ 2a) .a//e- 31 *0e Ho+g6o+g C4)*om) a4*0or(*(e). #ore, 3a- fa(*0 or o*0er2()e (mproper .o+-4.* ma1 3e a**r(34*e- *o *0e emp/o1ee) of pe*(*(o+er- =hile the mere failure of -ATDA8 to deliver res.ondent's luggage at the agreed .lace and time did not i.so facto amount to willful misconduct since the luggage was eventually delivered to .rivate res.ondent, albeit belatedly, =e are .ersuaded that the em.loyees of -ATDA8 acted in bad faith1 3e "e!e" to the &e0os t on o! Romu'o P%'m%, Comme"c %' Att%che o! the Ph ' 00 ne Em+%ss4 %t D%5%"t%, $ho $%s $ th "es0on&ent A'c%nt%"% $hen the '%tte" sought %ss st%nce !"om the em0'o4ees o! CAT7A8- Th s &e0os t on $%s the +%s s o! the ! n& ngs o! the 'o$e" cou"ts $hen +oth %$%"&e& mo"%' &%m%ges to 0" #%te "es0on&entIn&ee&, the &e0os t on o! M"- P%'m% sho$s th%t the '%ngu%ge %n& con&uct o! 0et t one":s "e0"esent%t #e to$%"&s "es0on&ent A'c%nt%"% $%s -().o4r*eo4) or ar3(*rar1 *o >4)*(f1 *0e gra+* of mora/ -amage). T0e CATHA repre)e+*a*('e 2a) +o* o+/1 (+-(ffere+* a+- (mpa*(e+*? 0e 2a) a/)o r4-e a+- (+)4/*(+g. 7e s m0'4 %&# se& A'c%nt%"% to +u4 %n4th ng he $%nte&- ,ut e#en th%t $%s not s nce"e +ec%use the "e0"esent%t #e 5ne$ th%t the 0%ssenge" $%s ' m te& on'4 to L20-00 $h ch, ce"t% n'4, $%s not enough to 0u"ch%se com!o"t%+'e c'oth ngs %00"o0" %te !o" %n e;ecut #e con!e"ence- Cons &e" ng th%t A'c%nt%"% $%s not on'4 % "e#enue 0%ssenge" +ut e#en 0% & !o" % ! "st c'%ss % "' ne %ccommo&%t on %n& %ccom0%n e& %t the t me +4 the Comme"c %' Att%che o! the Ph ' 00 ne Em+%ss4 $ho $%s %ss st ng h m n h s

-A2010-

PROF. RODRIGO LOPE QUIMBO


o00o"tun t4 to !u'! '' the 0u"0ose o! h s t" 0- In !%ct, !o" $%nt o! %00"o0" %te c'oth ngs !o" the occ%s on +"ought %+out +4 the &e'%4 o! the %"" #%' o! h s 'ugg%ge, to h s em+%""%ssment %n& conste"n%t on "es0on&ent A'c%nt%"% h%& to see5 0ost0onement o! h s 0"e)%""%nge& con!e"ence $ th the G "ecto" *ene"%' o! T"%&e o! the host count"4In one c%se, th s Cou"t o+se"#e& th%t % t"%#e''e" $ou'& n%tu"%''4 su!!e" ment%' %ngu sh, %n; et4 %n& shoc5 $hen he ! n&s th%t h s 'ugg%ge & & not t"%#e' $ th h m %n& he ! n&s h mse'! n % !o"e gn '%n& $ thout %n4 %"t c'e o! c'oth ng othe" th%n $h%t he h%s onDISPOSITIVE Thus, "es0on&ent s ent t'e& to mo"%' %n& e;em0'%"4 &%m%ges- 3e ho$e#e" ! n& the %$%"& +4 the Cou"t o! A00e%'s o! PA0,000-00 !o" mo"%' &%m%ges e;cess #e, hence, We "e&uce the %mount to P/0,000-00- The e;em0'%"4 &%m%ges o! P20,000-00 +e ng "e%son%+'e s m% nt% ne&, %s $e'' %s the %tto"ne4:s !ees o! P2(,000-00 cons &e" ng th%t 0et t one":s %ct o" om ss on h%s com0e''e& A'c%nt%"% to ' t g%te $ th th "& 0e"sons o" to ncu" e;0enses to 0"otect h s nte"est-

0"o+'em, 0et t one" o" ts %gents shou'& h%#e +een mo"e cou"teous %n& %ccommo&%t ng to 0" #%te "es0on&ent, nste%& o! g # ng h m % cu"t "e0'4, 23h%t c%n $e &o, the +%gg%ge s m ss ng- I c%nnot &o %n4th ng - - An4ho$, 4ou c%n +u4 %n4th ng 4ou nee&, ch%"ge& to C%th%4 P%c ! c-2 CAT7A8:s em0'o4ees shou'& h%#e +een mo"e so' c tous to % 0%ssenge" n & st"ess %n& %ssu%ge& h s %n; et es %n& %00"ehens ons- To com0oun& m%tte"s, CAT7A8 "e!use& to h%#e the 'ugg%ge o! A'c%nt%"% &e' #e"e& to h m %t h s hote'; nste%&, he $%s "e9u "e& to 0 c5 t u0 h mse'! %n& %n o!! c %' o! the Ph ' 00 ne Em+%ss4- U+-er *0e .(r.4m)*a+.e), (* () e'(-e+* *0a* pe*(*(o+er 2a) rem()) (+ (*) -4*1 *o pro'(-e proper a+- a-e54a*e a))()*a+.e *o a pa1(+g pa))e+ger, more )o o+e 2(*0 f(r)* ./a)) a..ommo-a*(o+3he"e n +"e%ch ng the cont"%ct o! c%"" %ge the &e!en&%nt % "' ne s not sho$n to h%#e %cte& !"%u&u'ent'4 o" n +%& !% th, ' %+ ' t4 !o" &%m%ges s ' m te& to the n%tu"%' %n& 0"o+%+'e conse9uences o! the +"e%ch o! o+' g%t on $h ch the 0%"t es h%& !o"eseen o" cou'& h%#e "e%son%+'4 !o"eseen- In th%t c%se, such ' %+ ' t4 &oes not nc'u&e mo"%' %n& e;em0'%"4 &%m%ges- Con#e"se'4, ! the &e!en&%nt % "' ne s sho$n to h%#e %cte& !"%u&u'ent'4 o" n +%& !% th, the %$%"& o! mo"%' %n& e;em0'%"4 &%m%ges s 0"o0e"7o$e#e", "es0on&ent A'c%nt%"% s not ent t'e& to tem0e"%te &%m%ges, cont"%"4 to the "u' ng o! the cou"t % 9uo , (+ *0e a3)e+.e of a+1 )0o2(+g *0a* 0e )4)*a(+e- )ome pe.4+(ar1 /o)). It c%nnot +e g% ns% & th%t "es0on&ent:s 'ugg%ge $%s u't m%te'4 &e' #e"e& to h m $ thout se" ous o" %00"ec %+'e &%m%ge@. NO RATIO A'though the 3%"s%$ Con#ent on h%s the !o"ce %n& e!!ect o! '%$ n th s count"4, +e ng % t"e%t4 comm tment %ssume& +4 the Ph ' 00 ne go#e"nment, s% & con#ent on &oes not o0e"%te %s %n e;c'us #e enume"%t on o! the nst%nces !o" &ec'%" ng % c%"" e" ' %+'e !o" +"e%ch o! cont"%ct o! c%"" %ge o" %s %n %+so'ute ' m t o! the e;tent o! th%t ' %+ ' t4- 10 The 3%"s%$ Con#ent on &ec'%"es the c%"" e" ' %+'e !o" &%m%ges n the enume"%te& c%ses %n& un&e" ce"t% n ' m t%t ons7o$e#e", t must not +e const"ue& to 0"ec'u&e the o0e"%t on o! the C # ' Co&e %n& othe" 0e"t nent '%$s- It &oes not "egu'%te, much 'ess e;em0t, the c%"" e" !"om ' %+ ' t4 !o" &%m%ges !o" # o'%t ng the " ghts o! ts 0%ssenge"s un&e" the cont"%ct o! c%"" %ge, es0ec %''4 ! $ '!u'' m scon&uct on the 0%"t o! the c%"" e":s em0'o4ees s !oun& o" est%+' she&, $h ch s c'e%"'4 the c%se +e!o"e CsIn %n4 c%se, The 3%"s%$ Con#ent on tse'! 0"o# &es n A"t- 2( th%t ) 2(1) The c%"" e" sh%'' not +e ent t'e& to %#% ' h mse'! o! the 0"o# s ons o! th s con#ent on $h ch e;c'u&e o" ' m t h s ' %+ ' t4, (f *0e -amage () .a4)e- 31 0() 2(/f4// m().o+-4.* or 31 )4.0 -efa4/* o+ 0() par* a), (+ a..or-a+.e 2(*0 *0e /a2 of *0e .o4r* *o 20(.0 *0e .a)e () )43m(**e-, () .o+)(-ere- *o 3e e54('a/e+* *o 2(/f4// m().o+-4.*-2 (2) S m '%"'4 the c%"" e" sh%'' not +e ent t'e& to %#% ' h mse'! o! the s% & 0"o# s ons, (f *0e -amage () .a4)e- 4+-er *0e )ame .(r.4m)*a+.e) 31 a+1 age+* of *0e .arr(er a.*(+g 2(*0(+ *0e ).ope of 0() emp/o1me+*.A REASONING 3hen 0et t one" % "' ne m s0'%ce& "es0on&ent:s 'ugg%ge %n& !% 'e& to &e' #e" t to ts 0%ssenge" %t the %00o nte& 0'%ce %n& t me, some s0ec %' s0ec es o! n?u"4 must h%#e +een c%use& to h m- 6o" su"e, the '%tte" un&e"$ent 0"o!oun& & st"ess %n& %n; et4, %n& the !e%" o! 'os ng the

C. Commo+ Carr(age of Pa))e+ger) :. Na*4re a+- e;*e+* of re)po+)(3(/(*1 I)aa. '). AL Amme+ Tra+)por*a*(o+ 101 Ph ' 1046 ,eng.onH 2/ August 1E(< (&%)
FACTS A- 1- Ammen T"%ns0o"t%t on Co-, Inc- s % co"0o"%t on eng%ge& n the +us ness o! t"%ns0o"t ng 0%ssenge"s +4 '%n& !o" com0ens%t on n the , co' 0"o# nces %n& one o! the ' nes t o0e"%tes s the one connect ng 1eg%s0 C t4, A'+%4 $ th N%g% C t4, C%m%" nes Su"- One o! the +uses $h ch Ammen T"%ns0o"t%t on $%s o0e"%t ng s ,us /1- On /1 M%4 1E(1, Ces%" 1- Is%%c +o%"&e& s% & +us %s % 0%ssenge" 0%4 ng the "e9u "e& !%"e !"om 1 g%o, A'+%4 +oun& !o" P ' , C%m%" nes Su", he se%te& h mse'! on the 'e!t s &e the"eo! "est ng h s 'e!t %"m on the $ n&o$ s '' +ut $ th h s 'e!t e'+o$ outs &e the $ n&o$-,ut +e!o"e "e%ch ng h s &est n%t on, the +us co'' &e& $ th % 0 c5)u0 com ng !"om the o00os te & "ect on, %s % "esu't o! $h ch Is%%c=s 'e!t %"m $%s com0'ete'4 se#e"e& %n& the se#e"e& 0o"t on !e'' ns &e the +us- Is%%c $%s "ushe& to % hos0 t%' n I" g%, C%m%" nes Su" $he"e he $%s g #en +'oo& t"%ns!us on to s%#e h s ' !e- A!te" 4 &%4s, he $%s t"%ns!e""e& to %nothe" hos0 t%' n T%+%co, A'+%4, $he"e he un&e"$ent t"e%tment !o" / months- 7e $%s mo#e& '%te" to the O"tho0e& c 7os0 t%' $he"e he $%s o0e"%te& on %n& st%4e& the"e !o" %nothe" 2 months- 6o" these se"# ces, he ncu""e& e;0enses %mount ng to P62/-40, e;c'u& ng me& c%' !ees $h ch $e"e 0% & +4 Ammen T"%ns0o"%t onAs %n %!te"m%th, Is%%c +"ought %n %ct on %g% nst Ammen T"%ns0o"t%t on !o" &%m%ges %''eg ng th%t the co'' s on $h ch "esu'te& n the 'oss o! h s 'e!t %"m $%s m% n'4 &ue to the g"oss ncom0etence %n& "ec5'essness o! the &" #e" o! the +us o0e"%te& +4 Ammen T"%ns0o"t%t on %n& th%t Ammen T"%ns0o"%t on ncu""e& n cu'0% cont"%ctu%' %" s ng !"om ts non) com0' %nce $ th ts o+' g%t on to t"%ns0o"t Is%%c s%!e'4 to h s &est n%t on-

26

TRANSPORTATION AND PUBLIC UTILITY LAW


Ammen T"%ns0o"t%t on set u0 %s s0ec %' &e!ense th%t the n?u"4 su!!e"e& +4 Is%%c $%s &ue ent "e'4 to the !%u't o" neg' gence o! the &" #e" o! the 0 c5)u0 c%" $h ch co'' &e& $ th the +us &" #en +4 ts &" #e" %n& to the cont" +uto"4 neg' gence o! Is%%c h mse'!ISSUE 3ON the +us com0%n4 s ' %+'e HELD No A"t c'e 1<// CC 0"o# &es th%t KCommon c%"" e"s, !"om the n%tu"e o! the " +us ness %n& !o" "e%sons o! 0u+' c 0o' c4, %"e +oun& to o+se"#e e;t"%o"& n%"4 & ' gence n the # g '%nce o#e" the goo&s %n& !o" the s%!et4 o! the 0%ssenge"s t"%ns0o"te& +4 them %cco"& ng to %'' the c "cumst%nces o! e%ch c%se- Such e;t"%o"& n%"4 & ' gence n the # g '%nce o#e" the goo&s s !u"the" e;0"esse& n %"t c'es 1</4, 1</(, %n& 1<4(, Nos- (, 6, %n& <, $h 'e the e;t"%o"& n%"4 & ' gence !o" the s%!et4 o! the 0%ssenge"s s !u"the" set !o"th n %"t c'es 1<(( %n& 1<(6-> A"t c'e 1<(( CC 0"o# &es th%t KA common c%"" e" s +oun& to c%""4 the 0%ssenge"s s%!e'4 %s !%" %s hum%n c%"e %n& !o"es ght c%n 0"o# &e, us ng the utmost & ' gence o! #e"4 c%ut ous 0e"sons, $ th % &ue "eg%"& !o" %'' the c "cumst%nces-> A"t c'e 1<(6 CC 0"o# &es th%t KIn c%se o! &e%th o! o" n?u" es to 0%ssenge"s, common c%"" e"s %"e 0"esume& to h%#e +een %t !%u't o" to h%#e %cte& neg' gent'4, un'ess the4 0"o#e th%t the4 o+se"#e& e;t"%o"& n%"4 & ' gence %s 0"esc" +e& n %"t c'es 1<// %n& 1<((-> The Co&e Comm ss on, n ?ust !4 ng th s e;t"%o"& n%"4 & ' gence "e9u "e& o! % common c%"" e", s% & KA common c%"" e" s +oun& to c%""4 the 0%ssenge"s s%!e'4 %s !%" %s hum%n c%"e %n& !o"es ght c%n 0"o# &e, us ng the utmost & ' gence o! #e"4 c%ut ous 0e"sons, $ th &ue "eg%"& !o" %'' c "cumst%nces- Th s e;t"%o"& n%"4 & ' gence "e9u "e& o! common c%"" e"s s c%'cu'%te& to 0"otect the 0%ssenge"s !"om the t"%g c m sh%0s th%t !"e9uent'4 occu" n connect on $ th "%0 & mo&e"n t"%ns0o"t%t onTh s h gh st%n&%"& o! c%"e s m0e"%t #e'4 &em%n&e& +4 the 0"ec ousness o! hum%n ' !e %n& +4 the cons &e"%t on th%t e#e"4 0e"son must n e#e"4 $%4 +e s%!egu%"&e& %g% nst %'' n?u"4- K 6"om the 'eg%' 0"o# s ons, the !o''o$ ng "est%tement o! the 0" nc 0'es go#e"n ng the ' %+ ' t4 o! % common c%"" e" c%n +e m%&eH (1) the ' %+ ' t4 o! % c%"" e" s cont"%ctu%' %n& %" ses u0on +"e%ch o! ts o+' g%t on- The"e s +"e%ch ! t !% 's to e;e"t e;t"%o"& n%"4 & ' gence %cco"& ng to %'' the c "cumst%nces o! e%ch c%se; (2) % c%"" e" s o+' ge& to c%""4 ts 0%ssenge" $ th the utmost & ' gence o! % #e"4 c%ut ous 0e"son, h%# ng &ue "eg%"& !o" %'' the c "cumst%nces; (/) % c%"" e" s 0"esume& to +e %t !%u't o" to h%#e %cte& neg' gent'4 n c%se o! &e%th o!, o" n?u"4 to, 0%ssenge"s, t +e ng ts &ut4 to 0"o#e th%t t e;e"c se& e;t"%o"& n%"4 & ' gence; %n& (4) the c%"" e" s not %n nsu"e" %g% nst %'' " s5s o! t"%#e',ut n th s c%se ,us /1, mme& %te'4 0" o" to the co'' s on, $%s "unn ng %t % mo&e"%te s0ee& +ec%use t h%& ?ust sto00e& %t the schoo' .one o! M%t%cong, Po'%ngu , A'+%4- The 0 c5)u0 c%" $%s %t !u'' s0ee& %n& $%s "unn ng outs &e o! ts 0"o0e" '%ne- The &" #e" o! the +us, u0on see ng the m%nne" n $h ch the 0 c5)u0 $%s then "unn ng, s$e"#e& the +us to the #e"4 e;t"eme " ght o! the "o%& unt ' ts !"ont %n& "e%" $hee's h%#e gone

-A2010-

PROF. RODRIGO LOPE QUIMBO


LANDINGIN '. PANTRANCO *R 1)2A014)1( BI11AMOR, D-H M%4 2E, 1E<0 (5 t 5)
NATURE A00e%' +4 P%nt"%nco o! the ?u&gment o! the Cou"t o! 6 "st Inst%nce o! M%n '% o"&e" ng the &e!en&%nts %n& M%"ce'o O' g%n to 0%4 the 0'% nt !!s n C # ' C%se No- G)146A the sum o! P6,(00-00, %n& the 0'% nt !!s n C # ' C%se No- 14<0 (1)2A01() the sum o! P/,(00-00FACTS ) The com0'% nts n s% & t$o c%ses $e"e ! 'e& +4 the s0ouses M%"ce'o 1%n& ng n %n& R%c9ue' ,oc%s%s, %n& the s0ouses Pe&"o *%"c % %n& Eu!"%c % 1%n& ng n, "es0ect #e'4, !o" &%m%ges %''ege&'4 su!!e"e& +4 them n connect on $ th the &e%th o! the " "es0ect #e &%ughte", 1eon '% 1%n& ng n %n& Est"e''% *%"c %, &ue to the %''ege& neg' gence o! the &e!en&%nts %n&Fo" +"e%ch o! cont"%ct o! c%"" %ge- In the " com0'% nts, 0'% nt !!s %#e""e&, %mong othe"s, th%t n the mo"n ng o! A0" ' 20, 1E6/, the " %+o#e)ment one& &%ughte"s $e"e %mong the 0%ssenge"s n the +us &" #en +4 &e!en&%nt M%"ce'o O' g%n %n& o$ne& %n& o0e"%te& +4 &e!en&%nt PANTRANCO on %n e;cu"s on t" 0 !"om G%gu0%n C t4 to ,%gu o C t4 %n& +%c5, th%t the +us $%s o0en on one s &e %n& enc'ose& on the othe", n g"oss # o'%t on o! the "u'es o! the Pu+' c Se"# ce Comm ss on; th%t &e!en&%nt PANTRANCO %cte& $ th neg' gence, !"%u& %n& +%& !% th n 0"eten& ng to h%#e 0"e# ous'4 secu"e& % s0ec %' 0e"m t !o" the t" 0 $hen n t"uth t h%& not &one so; th%t u0on "e%ch ng %n u0h '' 0o nt %t C%m0 A, Pennon Ro%&, ,%gu o C t4, on the on$%"& t" 0, &e!en&%nt &" #e", th"ough utte" '%c5 o! !o"es ght, e;0e" ence %n& &" # ng 5no$'e&ge, c%use& the +us to st%'' %n& sto0 !o" % !e$ moments; th%t th"ough the s% & &e!en&%nt:s !%u't %n& m sh%n&' ng, the moto" ce%se& to !unct on, c%us ng the +us to s' &e +%c5 unchec5e&; th%t $hen the s% & &e!en&%nt su&&en'4 s$e"#e& %n& stee"e& the +us to$%"& the mount% ns &e, 1eon '% %n& Est"e''%, togethe" $ th se#e"%' othe" 0%ssenge"s, $e"e th"o$n out o! the +us th"ough ts o0en s &e unto the "o%&, su!!e" ng se" ous n?u" es %s % "esu't o! $h ch 1eon '% %n& Est"e''% & e& %t the hos0 t%' %n& the s%me &%4) Ge!en&%nts ! 'e& % ?o nt %ns$e" to e%ch o! the t$o com0'% nts %''eg ng, %mong othe"s, th%t %t the t me o! the %cc &ent, &e!en&%nt &" #e" $%s &" # ng the +us %t, the s'o$ s0ee& o! %+out 10 5 'omete"s 0e" hou"; th%t $h 'e the s% & &e!en&%nt $%s stee" ng h s +us to$%"& the mount% ns &e %!te" he%" ng % soun& com ng !"om un&e" the "e%" en& o! the +us, 1eon '% %n& Est"e''% "ec5'ess'4, %n& n & so+e& ence to h s shoute& $%"n ngs %n& %&# ce, ?um0e& out o! the +us c%us ng the " he%&s to h t the "o%& o" 0%#ement; th%t the +us $%s then +e ng &" #en $ th e;t"%o"& n%"4 c%"e, 0"u&ence %n& & ' gence; th%t &e!en&%nt PANTRANCO o+se"#e& the c%"e %n& & ' gence o! % goo& !%the" o! % !%m '4 to 0"e#ent the %cc &ent %s $e'' %s n the se'ect on %n& su0e"# s on o! ts em0'o4ees, 0%"t cu'%"'4 o! &e!en&%nt &" #e"; %n& th%t the &ec s on

o#e" the 0 'e o! stones o" g"%#e' s tu%te& on the "%m0%"t o! the "o%&S% & &" #e" cou'& not mo#e the +us !%"the" " ght %n& "un o#e" % g"e%te" 0o"t on o! the 0 'e, the 0e%5 o! $h ch $%s %+out / !eet h gh, $ thout en&%nge" ng the s%!et4 o! h s 0%ssenge"s- An& not$ thst%n& ng %'' these e!!o"ts, the "e%" 'e!t s &e o! the +us $%s h t +4 the 0 c5)u0 c%"3h 'e the 0os t on t%5en +4 Is%%c, -e- th%t the &" #e" o! the +us shou'& h%#e sto00e& the +us to %''o$ the othe" #eh c'e to 0%ss "%the" th%n s9uee. ng +et$een the oncom ng 0 c5)u0 %n& the 0 'e o! g"%#e', %00e%'s mo"e to the sense o! c%ut on th%t one shou'& o+se"#e n % g #en s tu%t on to %#o & %n %cc &ent o" m sh%0, such ho$e#e" c%n not %'$%4s +e e;0ecte& !"om one $ho s 0'%ce& su&&en'4 n % 0"e& c%ment $he"e he s not g #en enough t me to t%5e the 0"o0e" cou"se o! %ct on %s he shou'& un&e" o"& n%"4 c "cumst%nces- 6o" th s "e%son, %utho" t es %+oun& $he"e !% 'u"e to o+se"#e the s%me &eg"ee o! c%"e th%t %s o"& n%"4 0"u&ent m%n $ou'& e;e"c se un&e" o"& n%"4 c "cumst%nces $hen con!"onte& $ th % su&&en eme"genc4 $%s he'& to +e $%""%nte& %n& % ?ust ! c%t on to e;em0t the c%"" e" !"om ' %+ ' t4- Thus, t $%s he'& th%t K$he"e % c%"" e"=s em0'o4ee s con!"onte& $ th % su&&en eme"genc4, the !%ct th%t he s o+' ge& to %ct 9u c5'4 %n& $ thout % ch%nce !o" &e' +e"%t on must +e t%5en nto %ccount, %n& he s not he'& to the s%me &eg"ee o! c%"e th%t he $ou'& othe"$ se +e "e9u "e& to e;e"c se n the %+sence o! such eme"genc4 +ut must e;e"c se on'4 such c%"e %s %n4 o"& n%"4 0"u&ent 0e"son $ou'& e;e"c se un&e" ' 5e c "cumst%nces %n& con& t ons, %n& the !% 'u"e on h s 0%"t to e;e"c se the +est ?u&gment the c%se "en&e"s 0oss +'e &oes not est%+' sh '%c5 o! c%"e %n& s5 '' on h s 0%"t $h ch "en&e"s the com0%n4, ' %+'e- > Cons &e" ng %'' the c "cumst%nces, the &" #e" o! the +us h%s &one $h%t % 0"u&ent m%n cou'& h%#e &one to %#o & the co'' s on %n& th s "e' e#es the t"%ns0o"t com0%n4 !"om ' %+ ' t4 un&e" the '%$A'so, $hen Is%%c +o%"&e& the +us n 9uest on, he se%te& h mse'! on the 'e!t s &e the"eo! "est ng h s 'e!t %"m on the $ n&o$ s '' +ut $ th h s 'e!t e'+o$ outs &e the $ n&o$, th s +e ng h s 0os t on n the +us $hen the co'' s on too5 0'%ce- It s !o" th s "e%son th%t the co'' s on "esu'te& n the se#e"%nce o! s% & 'e!t %"m !"om the +o&4 o! %00e''%nt thus &o ng h m % g"e%t &%m%ge- 7%& he not 0'%ce& h s 'e!t %"m on the $ n&o$ s '' $ th % 0o"t on the"eo! 0"ot"u& ng outs &e, 0e"h%0s the n?u"4 $ou'& h%#e +een %#o &e& %s s the c%se $ th the othe" 0%ssenge"s- It s to +e note& th%t Is%%c $%s the on'4 # ct m o! the co'' s on- It s %00%"ent th%t Is%%c s gu 't4 o! cont" +uto"4 neg' gence-A'though cont" +uto"4 neg' gence c%nnot "e' e#e the c%"" e" o! ts ' %+ ' t4 +ut $ '' on'4 ent t'e t to % "e&uct on o! the %mount o! &%m%ge c%use& (A"t c'e 1<62, ne$ C # ' Co&e), th s s % c "cumst%nce $h ch !u"the" m ' t%tes %g% nst the 0os t on t%5en +4 Is%%c n th s c%se- It s the 0"e#% ' ng "u'e th%t t s neg' gence 0e" se !o" % 0%ssenge" on % "% '"o%& #o'unt%" '4 o" n%&#e"tent'4 to 0"ot"u&e h s %"m, h%n&, e'+o$, o" %n4 othe" 0%"t o! h s +o&4 th"ough the $ n&o$ o! % mo# ng c%" +e4on& the oute" e&ge o! the $ n&o$ o" oute" su"!%ce o! the c%", so %s to come n cont%ct $ th o+?ects o" o+st%c'es ne%" the t"%c5, %n& th%t no "eco#e"4 c%n +e h%& !o" %n n?u"4 $h ch +ut !o" such neg' gence $ou'& not h%#e +een sust% ne&

27

TRANSPORTATION AND PUBLIC UTILITY LAW


con# ct ng the s% & &e!en&%nt $%s not 4et ! n%', the s%me h%# ng +een %00e%'e& to the Cou"t o! A00e%'s $he"e t $%s st '' 0en& ng) ,4 %g"eement o! the 0%"t es, the t$o c%ses $e"e t" e& ?o nt'4- On Octo+e" 1<, 1E66, the cou"t % 9uo "en&e"e& ts &ec s on the"e n n $h ch t m%&e the !o''o$ ng ! n& ngsH th%t the"e $%s no neg' gence on the 0%"t o! e the" o! the &e!en&%nts; th%t on'4 the &%4 +e!o"e, the s% & c"oss)?o nt $%s &u'4 ns0ecte& %n& !oun& to +e n o"&e"; %n& th%t &e!en&%nt PANTRANCO h%& e;e"c se& the "e9u s te c%"e n the se'ect on %n& su0e"# s on o! ts em0'o4ees, nc'u& ng the &e!en&%nt &" #e"- The cou"t conc'u&e& th%t 2the %cc &ent $%s c%use& +4 % !o"tu tous e#ent o" %n %ct o! *o& +"ought %+out +4 some e;t"%)o"& n%"4 c "cumst%nces n&e0en&ent o! the $ '' o! the P%nt"%nco o" ts em0'o4ees-2 ) 7o$e#e", the C6I ne#e"the'ess o"&e"e& P%nt"%nco to 0%4 the 0'% nt !!s, not n 0%4ment o! ' %+ ' t4 +ec%use o! %n4 neg' gence on the 0%"t o! the &e!en&%nts +ut %s %n e;0"ess on o! s4m0%th4 %n& goo&$ ''- Thus, Ge!en&%nts)%00e''%nts com0'% n th%t h%# ng !oun& them to +e %+so'ute'4 !"ee !"om !%u't o" neg' gence, %n& h%# ng n !%ct & sm sse& the com0'% nts %g% nst them, the cou"t shou'& not h%#e o"&e"e& them to %ssume %n4 0ecun %"4 ' %+ ' t4ISSUE 3ON P%nt"%nco s ' %+'e HELD 8es- P%nt"%nco & & not me%su"e u0 to the &eg"ee o! c%"e %n& !o"es ght "e9u "e& t un&e" the c "cumst%nces- As % common c%"" e", &e!en&%nt) %00e''%nt PANTRANCO $%s &ut4 +oun& to c%""4 ts 0%ssenge"s s%!e'4 %s !%" %s hum%n c%"e %n& !o"es ght c%n 0"o# &e, us ng the utmost & ' gence o! #e"4 c%ut ous 0e"sons, $ th % &ue "eg%"& !o" %'' the c "cumst%ncesRATIOB ) The cou"t +e'o$ !oun& th%t the c"oss)?o nt o! the +us n $h ch the &ece%se& $e"e " & ng +"o5e, $h ch c%use& the m%'!unct on ng o! the moto", $h ch n tu"n "esu'te& n 0%n c %mong some o! the 0%ssenge"sTh s Cou"t he'& n "ecent &ec s ons th%t %n %cc &ent c%use& +4 &e!ects n the %utomo+ 'e s not % c%so !o"tu to- The "%t on%'e o! the c%"" e":s ' %+ ' t4 s the !%ct th%t 2the 0%ssenge" h%s ne the" the cho ce no" cont"o' o#e" the c%"" e" n the se'ect on %n& use o! the e9u 0ment %n& %00' %nces n use +4 the c%"" e") 3hen % 0%ssenge" & es o" s n?u"e&, the 0"esum0t on s th%t the common c%"" e" s %t !%u't o" th%t t %cte& neg' gent'4 (A"t c'e 1<(6)- Th s 0"esum0t on s on'4 "e+utte& +4 0"oo! on the c%"" e":s 0%"t th%t t o+se"#e& the 2e;t"%o"& n%"4 & ' gence2 "e9u "e& n A"t c'e 1<// %n& the 2utmost & ' gence o! #e"4 c%ut ous 0e"sons2 "e9u "e& n A"t c'e 1<((- In the nst%nt c%se t %00e%"s th%t the cou"t +e'o$ cons &e"e& the 0"esum0t on "e+utte& on the st"ength o! &e!en&%nts)%00e''%nts: e# &ence th%t on'4 the &%4 +e!o"e the nc &ent, the c"oss?o nt n 9uest on $%s &u'4 ns0ecte& %n& !oun& to +e n o"&e"- It &oes not %00e%", ho$e#e", th%t the c%"" e" g%#e &ue "eg%"& !o" %'' the c "cumst%nces n connect on $ th the s% & ns0ect on- The +us n $h ch the &ece%se& $e"e " & ng $%s he%# '4 '%&en $ th 0%ssenge"s, %n& t $ou'& +e t"%#e"s ng mount% nous, c "cu tous %n& %scen& ng "o%&s- Thus the ent "e +us, nc'u& ng ts mech%n c%' 0%"ts, $ou'&

-A2010-

PROF. RODRIGO LOPE QUIMBO


0%ssenge" n t"%ns t, !o" ! t $e"e the c%se the t"%ns0o"t%t on ! "m $ou'& +e % goo& sou"ce o! st 0en&s !o" the !%m '4 o! one $ho $ou'& ' 5e to en& t %'' +4 s m0'4 +o%"& ng % 0%ssenge" +us, 0%4 h s !%"e %n& then ntent on%''4 !%'' !"om t- A c%"" e" cou'& not +e ch%"ge& $ th %'' the c%"e %n& & ' gence !o" e%ch %n& e#e"4 0%ssenge"- It s enough th%t h s em0'o4ees see to t th%t the 0%ssenge" 0'%ces h mse'! s%!e'4 ns &e the #eh c'e, th%t t s o0e"%te& c%"e!u''4 %n& ts mech%n sm s 0e"!ect'4 u0" ght to %#o & m sh%0s) t $ou'& +e un"e%son%+'e e;0ect !"om o0e"%to"s o! 0u+' c ut ' t4 to &ete"m ne +e!o"eh%n& th%t % ce"t% n 0%ssenge" s not ' %+'e to !%'' & ..4 o" s'ee04 on the $%4, !o" th%t s the #e"4 'oo5Iout o! the 0%ssenge" h mse'!) The con&ucto" cou'& not h%#e !o"eseen, %n& he $%s not &ut4 +oun& to n9u "e, ! on th%t #e"4 mo"n ng 1%n& cho $ou'& not !ee' & ..4 o" s'ee04 on the $%4- Most 0"o+%+'4 he $%s &"o$s4, %n& %s he !e'' nto % t"%nce he !e'' !"om the t"uc5, %n& not %s he 0"eten&e&, $hen ! ; ng h s +%s5et o! ch c5ens) % 0%ssenge", +e ng !%m ' %" $ th h s 0e"son%' h%+ ts, must see to t th%t he se%ts h mse'! n % s%!e 0o"t on o! the #eh c'e so %s to %#o & !%'' ng &o$n ?ust n c%se he m%4 !ee' s'ee04 o" & ..4- Th%t c "cumst%nce cou'& not h%#e +een !o"eseen +4 the con&ucto", %n& t $ou'& +e un"e%son%+'e to ch%"ge then on %n4 m sh%0 %" s ng !"om such c "cumst%nce) n sho"t, ,TC $%s not ' %+'e +ec%use the"e $%s no neg' gence- Antu5 n '%ng t%'%g% s 1%n& choDisposition Pet t on s g"%nte&- Gec s on "e#e"se& (,TC not neg' gent, thus not ' %+'e)

n%tu"%''4 +e t%;e& mo"e he%# '4 th%n t $ou'& +e un&e" o"& n%"4 c "cumst%nces- The me"e !%ct th%t the +us $%s ns0ecte& on'4 "ecent'4 %n& !oun& to +e n o"&e" $ou'& not e;em0t the c%"" e" !"om ' %+ ' t4 un'ess t s sho$n th%t the 0%"t cu'%" c "cumst%nces un&e" $h ch the +us $ou'& t"%#e' $e"e %'so cons &e"e&DISPOSITIONH Du&gment %00e%'e& !"om s mo& ! e& %n& &e!en&%nt) %00e''%nt PANTRANCO s o"&e"e& to 0%4 the 0'% nt !!s)%00e''ees-

1ANGIC7O B ,ATAN*AS TRANSPO COMPAN8 (2 O* <640 PENA; Gecem+e" /1, 1E(6 (m% %)
NATURE A00e%' !"om &ec s on o! C6I FACTS ) Nu c5 !%ctsH 1%n& cho !e'' !"om ,TC +us- 7e c'% me& the"e $%s neg' gence !"om the con&ucto" +ec%use he $ou'& not h%#e !%''en h%& the con&ucto" ! ;e&Fsecu"e the +%s5et o! ch c5ens th%t he h mse'! $ent to ! ;F secu"e, thus c%us ng h m to !%'') 1ong #e"s onH 1%n& cho sto00e& % +us o! ,TC %t N%sug+u- ,e!o"e +o%"& ng the +us, the con&ucto" he'0e& 1%n& cho secu"e the t$o +%s5ets o! ch c5ens he $%s c%""4 ng on the "unn ng +o%"& o! the +us7e s% & to the con&ucto" th%t he $%s he%&e& to ,%'%4%n, %n& 0% & the co""es0on& ng !%"e (P0-(0)- (En& o! un& s0ute& !%cts) ) Acco"& ng to 1%n& cho, he not ce& th%t one o! the +%s5ets $%s %+out to !%'', thus he c%''e& the %ttent on o! the con&ucto"- 7o$e#e", !o" !% 'u"e o! the con&ucto" to %tten& to the ch c5ens, 1%n& cho $ent to the "unn ng +o%"& h mse'! to secu"e the +%s5et- 7e !e'' !"om the +us- The +us sto00e&, %n& too5 h m to the hos0 t%' ) 1%n& cho then ! 'e& % com0'% nt !o" &%m%ges !o" K0h4s c%' n?u" es sust% ne&, 'oss o! no"m%' m n&, mo"%' &%m%ges, %n& %tto"ne4=s !ees-> 7e c'% me& th%t t $%s +ec%use o! the neg' gence o! the con&ucto" ( n !% ' ng to %tten& to the ch c5ens) th%t he su!!e"e& h s n?u" es) C6IH n !%#o" o! 1%n& cho, o"&e"e& ,TC to 0%4 ) noteH SC !oun& th%t the +%s5ets (+oth o! them) $e"e st '' secu"e& to the "unn ng +o%"& e#en $hen the +us "e%che& P%' co ,us St%t on ISSUE 3ON ,TC $%s neg' gent, thus ' %+'e to 0%4 1%n& cho HELD NO Ratio The #e"4 c "cumst%nce th%t the c%ge $%s st '' n ts 0'%ce $hen the +us "e%che& P%' co St%t on c'e%"'4 +e' es 1%n& cho=s c'% m th%t t $%s %+out to !%''- 6o" th s "e%son, the"e $%s noth ng !o" $h ch the con&ucto" %n& ,TC cou'& +e he'& ' %+'e !o" the !%'' o! 1%n& cho !"om the +us o! ,TCReasoning %'though t s t"ue th%t ,TC $%s % !"%nch se& c%"" e" thus &ut4 +oun& to c%""4 0%ssenge"s !"om 0o nt o! o" g n to the 0o nt o! &est n%t on, such &ut4 &oes not encom0%ss %'' " s5s %tten&%nt to %

NECESITO # PARAS 104 P7I1 <( D,1 RE8ES; Dune /0, 1E(A (o$en)
FACTS ) D%nu%"4 2A, 1E(4, Se#e" n% *%"ces %n& he" one) 4e%" o'& son, P"ec ''%no Neces to, c%""4 ng #eget%+'es, +o%"&e& 0%ssenge" %uto t"uc5 o" +us o! Ph ' 00 ne R%++ t ,us 1 nes (PR,1) %t Agno, P%ng%s n%n- The 0%ssenge" t"uc5, &" #en +4 6"%nc sco ,%n&one'', then 0"ocee&e& on ts "egu'%" "un !"om Agno to M%n '%- A!te" 0%ss ng M%ng%t%"em, P%ng%s n%n, the #eh c'e ente"e& % $oo&en +" &ge, +ut the !"ont $hee's s$e"#e& to the " ght; the &" #e" 'ost cont"o', %n& %!te" $"ec5 ng the +" &ge:s $oo&en "% 's, the t"uc5 !e'' on ts " ght s &e nto % c"ee5 $he"e $%te" $%s +"e%st &ee0- The mothe", Se#e" n% *%"ces, $%s &"o$ne&; the son, P"ec ''%no Neces to, $%s n?u"e&, su!!e" ng %+"%s ons %n& !"%ctu"e o! the 'e!t !emu"- 7e $%s +"ought to the P"o# nc %' 7os0 t%' %t G%gu0%n, $he"e the !"%ctu"e $%s set +ut $ th !"%gments one cent mete" out o! ' ne- The mone4, $" st $%tch %n& c%"go o! #eget%+'es $e"e 'ost) C ! Tarla": PR,1 0'e%&e& th%t the %cc &ent $%s &ue to 2eng ne o" mech%n c%' t"ou+'e2 n&e0en&ent o" +e4on& the cont"o' o! the &e!en&%nts o" o! the &" #e" ,%n&one''- C6I !oun& th%t the +us $%s 0"ocee& ng s'o$'4 &ue to the +%& con& t on o! the "o%&; th%t the %cc &ent $%s c%use& +4 the !"%ctu"e o! the " ght stee" ng 5nuc5'e, $h ch $%s &e!ect #e n th%t ts cente" o" co"e $%s not com0%ct +ut 2+u++'e& %n& ce''u'ous2, % con& t on th%t

28

TRANSPORTATION AND PUBLIC UTILITY LAW


cou'& not +e 5no$n o" %sce"t% ne& +4 the c%"" e" &es0 te the !%ct th%t "egu'%" th "t4)&%4 ns0ect ons $e"e m%&e o! the stee" ng 5nuc5'e, s nce the stee' e;te" o" $%s smooth %n& sh n4 to the &e0th o! /F16 o! %n nch %'' %"oun&; th%t the 5nuc5'es %"e &es gne& %n& m%nu!%ctu"e& !o" he%#4 &ut4 %n& m%4 '%st u0 to ten 4e%"s; th%t the 5nuc5'e o! the +us th%t +"o5e $%s '%st ns0ecte& on D%nu%"4 (, 1E(4, %n& $%s &ue to +e ns0ecte& %g% n on 6e+"u%"4 (th- C6I 7E1G th%t the %cc &ent $%s e;c'us #e'4 &ue to !o"tu tous e#ent, & sm sse& +oth %ct onsISSUE 3ON the c%"" e" s ' %+'e !o" the m%nu!%ctu" ng &e!ect o! the stee" ng 5nuc5'e, %n& $hethe" the e# &ence & sc'oses th%t n "eg%"& the"eto the c%"" e" e;e"c se& the & ' gence "e9u "e& +4 '%$ (A"t- 1<((, ne$ C # ' Co&e)HELD 8ES Ratio It s c'e%" th%t the c%"" e" s not %n nsu"e" o! the 0%ssenge"s: s%!et4- 7 s ' %+ ' t4 "ests u0on neg' gence, h s !% 'u"e to e;e"c se the 2utmost2 &eg"ee o! & ' gence th%t the '%$ "e9u "es, %n& +4 A"t- 1<(6, n c%se o! % 0%ssenge":s &e%th o" n?u"4 the c%"" e" +e%"s the +u"&en o! s%t s!4 ng the cou"t th%t he h%s &u'4 & sch%"ge& the &ut4 o! 0"u&ence "e9u "e&- In the Ame" c%n '%$, $he"e the c%"" e" s he'& to the s%me &eg"ee o! & ' gence %s un&e" the ne$ C # ' Co&e, the "u'e on the ' %+ ' t4 o! c%"" e"s !o" &e!ects o! e9u 0ment s thus e;0"esse&H 2The 0"e0on&e"%nce o! %utho" t4 s n !%#o" o! the &oct" ne th%t % 0%ssenge" s ent t'e& to "eco#e" &%m%ges !"om % c%"" e" !o" %n n?u"4 "esu't ng !"om % &e!ect n %n %00' %nce 0u"ch%se& !"om % m%nu!%ctu"e", $hene#e" t %00e%"s th%t the &e!ect $ou'& h%#e +een & sco#e"e& +4 the c%"" e" ! t h%& e;e"c se& the &eg"ee o! c%"e $h ch un&e" the c "cumst%nces $%s ncum+ent u0on t, $ th "eg%"& to ns0ect on %n& %00' c%t on o! the necess%"4 tests- 6o" the 0u"0oses o! th s &oct" ne, the m%nu!%ctu"e" s cons &e"e& %s +e ng n '%$ the %gent o" se"#%nt o! the c%"" e", %s !%" %s "eg%"&s the $o"5 o! const"uct ng the %00' %nce- Acco"& ng to th s theo"4, the goo& "e0ute o! the m%nu!%ctu"e" $ '' not "e' e#e the c%"" e" !"om ' %+ ' t42 (10 Am- Du"- 20(, s, 1/24; see %Qso Penns4'#%n % R- Co- #s- Ro4, 102 C- S- 4(1; 20 1- E&- 141; Southe"n R- Co- #s- 7usse4, <4 A1R 11<2; 42 6e&- 2& <0; %n& E& Note, 2E A1R <AA; Ann C%s- 1E16E E2E)Reasoning ) 2ART- 1<((- A common c%"" e" s +oun& to c%""4 the 0%ssenge"s s%!e'4 %s !%" %s hum%n c%"e %n& !o"es ght c%n 0"o# &e, us ng the utmost & ' gence o! #e"4 c%ut ous 0e"sons, $ th % &ue "eg%"& !o" %'' the c "cumst%nces-2 ) The "%t on%'e o! the c%"" e":s ' %+ ' t4 s the !%ct th%t the 0%ssenge" h%s ne the" cho ce no" cont"o' o#e" the c%"" e" n the se'ect on %n& use o! the e9u 0ment %n& %00' %nces n use +4 the c%"" e"- 7%# ng, no 0" # t4 $h%te#e" $ th the m%nu!%ctu"e" o" #en&o" o! the &e!ect #e e9u 0ment, the 0%ssenge" h%s no "eme&4 %g% nst h m, $h 'e the c%"" e" usu%''4 h%sIt s +ut 'og c%', the"e!o"e, th%t the c%"" e", $h 'e not %n nsu"e" o! the s%!et4 o! h s 0%ssenge"s, shou'& ne#e"the'ess +e he'& to %ns$e" !o" the !'%$s o! h s e9u 0ment ! such !'%$s $e"e %t %'' & sco#e"%+'e) #organ $s. C%esapea&eH 3he"e %n n?u"4 s n!' cte& u0on % 0%ssenge" +4 the +"e%5 ng o" $"ec5 ng o! % 0%"t o! the t"% n on $h ch he

-A2010-

PROF. RODRIGO LOPE QUIMBO


stee" ng 5nuc5'e th%t c%use& the %uto+us No- 1EE to o#e"tu"n, $he"e+4 the 0%ssenge"s " & ng n t $e"e n?u"e& ISSUE 3ON the c%"" e" s ' %+'e !o" the +"e%5%ge o! the stee" ng 5nuc5'e th%t c%use& the %uto+us to o#e"tu"n, $he"e+4 the 0%ssenge"s " & ng n t $e"e n?u"e& HELD 8ES ) The "u'e 0"e#% ' ng n th s ?u" s& ct on %s est%+' she& n 0"e# ous &ec s ons o! th s Cou"t, c te& n ou" m% n o0 n on, s th%t % c%"" e" s ' %+'e to ts 0%ssenge"s !o" &%m%ges c%use& +4 mech%n c%' &e!ects o! the con#e4%nce- As e%"'4 %s 1E24, n 'asam $s. (mit%, 4( Ph '- 6(E th s Cou"t "u'e&H 2As !%" %s the "eco"& sho$s, the %cc &ent $%s c%use& e the" +4 &e!ects n the %utomo+ 'e o" e'se th"ough the neg' gence o! ts &" #e"- Th%t s not c%so !o"tu to-2 ) (on $s. Ce)u Auto)us CompanyH % common c%"" e" ' %+'e n &%m%ges to % 0%ssenge" !o" n?u" es c%use& +4 %n %cc &ent &ue to the +"e%5%ge o! % !%u't4 &"%g)' n5 s0" ng) A'though cou"ts o! the Cn te& St%tes %"e %t #%" %nce on the 9uest on o! % c%"" e":s ' %+ ' t4 !o" '%tent mech%n c%' &e!ects, the "u'e n th s ?u" s& ct on h%s +een cons stent n ho'& ng the c%"" e" "es0ons +'e- Th s Cou"t h%s 9uote& !"om Ame" c%n %n& Eng' sh &ec s ons, not +ec%use t !e't +oun& to !o''o$ the s%me, +ut me"e'4 n %00"o#%' o! the "%t on%'e o! the "u'e %s e;0"esse& the"e n, s nce the 0"e# ous Ph ' 00 ne c%ses & & not en'%"ge on the &e%s un&e"'4 ng the &oct" ne est%+' she& the"e+4Disposition M6R &en e&

s " & ng, t s 0"esum%+'4 the "esu't o! neg' gence %t some 0o nt +4 the c%"" e"- As st%te& +4 Du&ge Sto"4, n Sto"4 on ,% 'ments, sec- 601%H R3hen the n?u"4 o" &%m%ge h%00ens to the 0%ssenge" +4 the +"e%5 ng &o$n o" o#e"tu"n ng o! the co%ch, o" +4 %n4 othe" %cc &ent occu"" ng on the g"oun&, the 0"esum0t on 0" m% !%c e s th%t t occu""e& +4 the neg' gence o! the co%chmen, %n& onus 0"o+%n& s on the 0"o0" eto"s o! the co%ch to est%+' sh th%t the"e h%s +een no neg' gence $h%te#e", %n& th%t the &%m%ge o" n?u"4 h%s +een occ%s one& +4 ne# t%+'e c%su%'t4, o" +4 some c%use $h ch hum%n c%"e %n& !o"es ght cou'& not 0"e#ent; !o" the '%$ $ '', n ten&e"ness to hum%n ' !e %n& ' m+, ho'& the 0"o0" eto"s ' %+'e !o" the s' ghtest neg' gence, %n& $ '' com0e' them to "e0e' +4 s%t s!%cto"4 0"oo!s e#e"4 m0ut%t on the"eo!-: 3hen the 0%ssenge" h%s 0"o#e& h s n?u"4 %s the "esu't o! % +"e%5%ge n the c%" o" the $"ec5 ng o! the t"% n on $h ch he $%s +e ng c%"" e&, $hethe" the &e!ect $%s n the 0%"t cu'%" c%" n $h ch he $%s " & ng o" not, the +u"&en s then c%st u0on the c%"" e" to sho$ th%t t $%s &ue to % c%use o" c%uses $h ch the e;e"c se o! the utmost hum%n s5 '' %n& !o"es ght cou'& not 0"e#ent- An& the c%"" e" n th s connect on must sho$, ! the %cc &ent $%s &ue to % '%tent &e!ect n the m%te" %' o" const"uct on o! the c%", th%t not on'4 cou'& t not h%#e & sco#e"e& the &e!ect +4 the e;e"c se o! such c%"e, +ut th%t the +u '&e"s cou'& not +4 the e;e"c se o! the s%me c%"e h%#e & sco#e"e& the &e!ect o" !o"eseen the "esu't- Th s "u'e %00' es the s%me $hethe" the &e!ect #e c%" +e'onge& to the c%"" e" o" not-2 ) In the c%se no$ +e!o"e us, the "eco"& s to the e!!ect th%t the on'4 test %00' e& to the stee" ng 5nuc5'e n 9uest on $%s % 0u"e'4 # su%' ns0ect on e#e"4 th "t4 &%4s, to see ! %n4 c"%c5s &e#e'o0e&- It no$he"e %00e%"s th%t e the" the m%nu!%ctu"e" o" the c%"" e" %t %n4 t me teste& the stee" ng 5nuc5'e to %sce"t% n $hethe" ts st"ength $%s u0 to st%n&%"&, o" th%t t h%& no h &&en !'%$s th%t $ou'& m0% " th%t st"ength- An& 4et the c%"" e" must h%#e +een %$%"e o! the c" t c%' m0o"t%nce o! the 5nuc5'e:s "es st%nce; th%t ts !% 'u"e o" +"e%5%ge $ou'& "esu't n 'oss o! +%'%nce %n& stee" ng cont"o' o! the +us, $ th & s%st"ous e!!ects u0on the 0%ssenge"s- No %"gument s "e9u "e& to est%+' sh th%t % # su%' ns0ect on cou'& not & "ect'4 &ete"m ne $hethe" the "es st%nce o! th s c" t c%''4 m0o"t%nt 0%"t $%s not m0% "e&- No" h%s t +een sho$n th%t the $e%5en ng o! the 5nuc5'e $%s m0oss +'e to &etect +4 %n4 5no$n test; on the cont"%"4, the"e s test mon4 th%t t cou'& +e &etecte&- 3e %"e s%t s! e& th%t the 0e" o& c%' # su%' ns0ect on o! the stee" ng 5nuc5'e %s 0"%ct ce& +4 the c%"" e":s %gents & & not me%su"e u0 to the "e9u "e& 'eg%' st%n&%"& o! 2utmost & ' gence o! #e"4 c%ut ous 0e"sons2 ) 2%s !%" %s hum%n c%"e %n& !o"es ght c%n 0"o# &e2, %n& the"e!o"e th%t the 5nuc5'e:s !% 'u"e c%n not +e cons &e"e& % !o"tu tous e#ent th%t e;em0ts the c%"" e" !"om "es0ons + ' t4 (1%s%m #s- Sm th; Son #s- Ce+u Auto+us Co) Disposition the &ec s on %00e%'e& !"om s "e#e"se&

P0(/(pp(+e A(r/(+e) ') C('(/ Aero+a4*(.) !oar2/ SCRA EE2 Conce0c on, CD HDune 1/, 1E6A (T to)
NATURE O" g n%' Act on Ce"t o"%" FACTS ) 6 ' 0 n%s O" ent A "$%4s, Inc- ! 'e& %n %00' c%t on $ th C # ' Ae"on%ut cs ,o%"& %n %00' c%t on !o" % ce"t ! c%te o! 0u+' c con#en ence %n& necess t4- Th s %00' c%t on $%s o+?ecte& to +4 Ph ' 00 ne A "' nes- In the cou"se o! the he%" ng, 6 ' 0 n%s ! 'e& %n u"gent "e9uest !o" 0"o# s on%' %utho" t4 to o0e"%te un&e" % &et% 'e& 0"og"%m o! m0'ement%t on %tt%che& to s% & 0et t on %n& !o" the %00"o#%' o! ts +on& the"e!o", %s $e'' %s the 0"o# s on%' %00"o#%' o! ts t%" !! "egu'%t ons %n& the con& t ons o! c%"" %ge to +e 0" nte& %t the +%c5 o! the 0%ssenge" t c5ets) S% & "e9uest $%s g"%nte& &es0 te PA1=s o00os t on the"eto su+?ect to the con& t on th%t the te"m o! the 0"o# s on%' %utno" t4 sh%'' +e unt ' such t me %s the m% n %00' c%t on !o" % ce"t ! c%te o! 0u+' c con#en ence %n& necess t4 s ! n%''4 &ec &e& o" !o" such 0e" o& %s the CA, m%4 %t %n4 t me &ete"m ne) 7ence th s %ct on

NECESITO ' PARAS SReso'ut onQ D,1 RE8ES; Se0tem+e" 11, 1E(A (o$en)
FACTS ) M6R on &ec s on o! Dune /0, 1E(A, %n& th%t the s%me +e mo& ! e& $ th "es0ect to (1) ts ho'& ng the c%"" e" ' %+'e !o" the +"e%5%ge o! the

29

TRANSPORTATION AND PUBLIC UTILITY LAW


ISSUES 1- 3ON CA, h%s %utho" t4 to g"%nt % 0"o# s on%' %utho" t4 2- 3ON CA, h%& e# &ence to su00o"t the g"%nt /- 3ON PA1 $%s &e0" #e& o! ts &ue 0"ocess " ghts 4- 3ON CA, h%& 0"e)?u&ge& the me" ts o! the m% n %00' c%t on HELD 1- 8es- Sect on 10)C(1) o! Re0u+' c Act No- <<6 e;0' c t'4 %utho" .es CA, to ssue % tem0o"%"4 o0e"%t ng 0e"m t u0on ts o$n n t %t #e e#en +e!o"e 0"esent%t on o! e# &ence n the m% n %00' c%t on- It s %'so em+o& e& n the Pu+' c Se"# ce '%$ th%t such 0"o# s on%' 0e"m ts %"e s%nct one&- The o#e"" & ng cons &e"%t ons n +oth nst%nces %"e the s%me, n%me'4, th%t the se"# ce +e "e9u "e& +4 0u+' c con#en ence %n& necess t4, %n&, th%t the %00' c%nt s ! t, %s $e'' %s $ '' ng %n& %+'e to "en&e" such se"# ce 0"o0e"'4, n con!o"m t4 $ th '%$ %n& the 0e"t nent "u'es, "egu'%t ons %n& "e9u "ements-2- 8es- The teno" o! the o"&e" !o" the 0"o# s on%' 0e"m t ment ons the !%ct th%t 6 ' 0 n%s= e# &ence h%& est%+' she& t K0" m% !%c e> ts ! tness, $ '' ngness, %n& %+ ' t4 to o0e"%te the se"# ces %00' e& !o" %n& the 0u+' c nee& !o" mo"e % " t"%ns0o"t%t on se"# ce- The"e s %'so % 0"esum0t on n th s c%se th%t o!! c %' &ut4 h%s +een &u'4 0e"!o"me&- The conse9uent 0o' c4 %n& 0"%ct ce un&e"'4 ng ou" A&m n st"%t #e 1%$ s th%t cou"ts o! ?ust ce shou'& "es0ect the ! n& ngs o! !%ct o! s% & %&m n st"%t #e %genc es, un'ess the"e s %+so'ute'4 no e# &ence n su00o"t the"eo! o" such e# &ence s c'e%"'4, m%n !est'4 %n& 0%tent'4 nsu+st%nt %'/- No- As su00o"t to ts %''eg%t on o! &en %' o! &ue 0"ocess, PA1 c te& the c%se o! Ang T +%4 #s CIR- 7o$e#e", s% & c%se "e!e"s to the con& t ons essent %' to % #%' & &ec s on on the me" ts, !"om the # e$0o nt o! &ue 0"ocess, $he"e%s, n the c%se %t +%", $e %"e conce"ne& $ th %n nte"'ocuto"4 o"&e" 0" o" to the "en& t on o! s% & &ec s on- In !%ct, nte"'ocuto"4 o"&e"s m%4 somet mes +e ssue& e; 0%"te, 0%"t cu'%"'4, n %&m n st"%t #e 0"ocee& ngs, $ thout 0"e# ous not ce %n& he%" ng, cons stent'4 $ th &ue 0"ocess4- No- S% & c%se "e!e"s to the con& t ons essent %' to % #%' & &ec s on on the me" ts, !"om the # e$0o nt o! &ue 0"ocess, $he"e%s, n the c%se %t +%", $e %"e conce"ne& $ th %n nte"'ocuto"4 o"&e" 0" o" to the "en& t on o! s% & &ec s on- In !%ct, nte"'ocuto"4 o"&e"s m%4 somet mes +e ssue& e; 0%"te, 0%"t cu'%"'4, n %&m n st"%t #e 0"ocee& ngs, $ thout 0"e# ous not ce %n& he%" ng, cons stent'4 $ th &ue 0"ocessDisposition Pet t on & sm sse&-

-A2010-

PROF. RODRIGO LOPE QUIMBO


) As %n ncent #e !o" t"%#e'' ng on the s% & % "' ne, +oth !' ghts $e"e to m%5e %n o#e"n ght sto0o#e" %t N%" t%, D%0%n, %t the % "' nes: e;0ense, the"e%!te" 0"ocee& ng to M%n '% the !o''o$ ng &%4- On Dune 14, u0on %"" #%' %t N%" t%, the "es0on&ents $e"e + ''ete& %t 7ote' N 55o N%" t% !o" the n ght- The ne;t &%4, the4 $ent to the % "0o"t to t%5e the " !' ght to M%n '%- 7o$e#e", &ue to the Mt- P n%tu+o e"u0t on, un"e'ent ng %sh!%'' +'%n5ete& N no4 A9u no Inte"n%t on%' A "0o"t (NAIA), "en&e" ng t n%ccess +'e to % "' ne t"%!! c- 7ence, 0" #%te "es0on&ents: t" 0 to M%n '% $%s c%nce''e& n&e! n te'4D To %ccommo&%te the nee&s o! ts st"%n&e& 0%ssenge"s, DA1 "e+oo5e& %'' the M%n '%)+oun& 0%ssenge"s on !' ght No- <41 &ue to &e0%"t on Dune 16, 1EE1 %n& %'so 0% & !o" the hote' e;0enses !o" the " une;0ecte& o#e"n ght st%4- The !' ght $%s %g% n c%nce''e& &ue to NAIA:s n&e! n te c'osu"e- At th s 0o nt, DA1 n!o"me& the 0" #%te "es0on&ents th%t t $ou'& no 'onge" &e!"%4 the " hote' %n& %ccommo&%t on e;0ense &u" ng the " st%4 n N%" t%) S nce NAIA $%s on'4 "eo0ene& to % "' ne t"%!! c on Dune 22, 1EE1, 0" #%te "es0on&ents $e"e !o"ce& to 0%4 !o" the " %ccommo&%t ons %n& me%' e;0enses !"om the " 0e"son%' !un&s !"om Dune 16 to Dune 21, 1EE1- The " une;0ecte& st%4 n N%" t% en&e& on Dune 22, 1EE1 $hen the4 %"" #e& n M%n '% on +o%"& D1 !' ght No- <41) On Du'4 2(, "es0on&ents commence& %n %ct on !o" &%m%ges %g% nst DA1 +e!o"e the RTC- The4 s% & th%t DA1 !% 'e& to ' #e u0 to ts &ut4 to 0"o# &e c%"e %n& com!o"t to ts st"%n&e& 0%ssenge"s $hen t "e!use& to 0%4 !o" the " hote' %n& %ccommo&%t on e;0enses !"om Dune 16 to 21, 1EE1 %t N%" t%, D%0%n- In othe" $o"&s, the4 ns ste& th%t DA1 $%s o+' g%te& to shou'&e" the " e;0enses %s 'ong %s the4 $e"e st '' st"%n&e& n N%" t%- On the othe" h%n&, DA1 &en e& th s %''eg%t on %n& %#e""e& th%t % "' ne 0%ssenge"s h%#e no #este& " ght to these %men t es n c%se % !' ght s c%nce''e& &ue to 2!o"ce m%?eu"e-2 ) RTC "u'e& n !%#ou" o! the "es0on&ents- CA %!! "me&- Thus th s 0et t on ! 'e& +4 DA1ISSUEB 3ON DA1, %s % common c%"" e" h%s the o+' g%t on to shou'&e" the hote' %n& me%' e;0enses o! ts st"%n&e& 0%ssenge"s unt ' the4 h%#e "e%che& the " ! n%' &est n%t on, e#en ! the &e'%4 $e"e c%use& +4 2!o"ce m%?eu"e-2 HELDB NO3e %"e not unm n&!u' o! the !%ct th%t n % 0'etho"% o! c%ses $e h%#e cons stent'4 "u'e& th%t % cont"%ct to t"%ns0o"t 0%ssenge"s s 9u te & !!e"ent n 5 n&, %n& &eg"ee !"om %n4 othe" cont"%ctu%' "e'%t on- It s s%!e to conc'u&e th%t t s % "e'%t onsh 0 m+ue& $ th 0u+' c nte"est6% 'u"e on the 0%"t o! the common c%"" e" to ' #e u0 to the e;%ct ng st%n&%"&s o! c%"e %n& & ' gence "en&e"s t ' %+'e !o" %n4 &%m%ges th%t m%4 +e sust% ne& +4 ts 0%ssenge"s- 7o$e#e", th s s not to s%4 th%t common c%"" e"s %"e %+so'ute'4 "es0ons +'e !o" %'' n?u" es o" &%m%ges e#en ! the s%me $e"e c%use& +4 % !o"tu tous e#ent- To "u'e othe"$ se $ou'& "en&e" the &e!ense o! 2 K!o"ce m%?eu"e,2 %s %n e;ce0t on !"om %n4 ' %+ ' t4, ''uso"4 %n& ne!!ect #eAcco"& ng'4, the"e s no 9uest on th%t $hen % 0%"t4 s un%+'e to !u'! '' h s o+' g%t on +ec%use o! 2!o"ce m%?eu"e,2 the gene"%' "u'e s th%t he c%nnot

) A cont"%ct o! c%"" %ge $%s ente"e& nto +et$een 0et t one" %n& A1C !o" the t"%ns0o"t o! the '%tte"=s t m+e" !"om Su" g%o &e Su") Su'0 c o sent s tug+o%t KMT E&mun&> %n& +%"ge KSo' & B > to0 0 c5)u0 A1C=s t m+e") Se#e"%' ste#e&o"es o! C,I, $ho $e"e 'u"e& +4 A1C, +o%"&e& the KSo' & B > %n& o0ene& t sto"e"oom- The ste#e&o"e $e"e $%"ne& o! the g%s %n& he%t gene"%te& +4 the co0"% sto"e& n the'u"5s o! the sh 0- Not m n& ng the $%"n ng, the ste#e&o"e ente"e& the sto"e"oom %n& !e'' unconsc ous) T$o othe" ste#e&o"e, one o! $hom $%s 1eonc o P%m%"%n !o''o$e&P%m%"%n & e& %n& % su t !o" &%m%ges $%s ! 'e& +4 h s $ !e- The t" %' cou"t o"&e"e& Su'0 c o 1 nes to 0%4 P%'%m%n ?o nt'4 %n& se#e"%''4, $h ch $%s o!! c %te& +4 the CAISSUE 3ON Su'0 c o 1 nes %s % common c%"" e" s st '' ' %+'e !o" the &e%th o! P%'%m%"%n e#en though P%m%'%"%n s not % 0%ssenge"HELD 8ES ) A'though P%m%'%"%n $%s ne#e" % 0%ssenge" o! Su'0 c o 1 nes, st '' the '%tte" s ' %+'e %s % common c%"" e" !o" h s &e%th) A1C h%& % cont"%ct % c%"" %ge $ th Su'0 c o 1 nes- The 0"esence o! ste#e&o"es sent +4 A1C on +o%"& the +%"ge o! the 0et t one" $%s c%''e& !o" +4 the cont"%ct o! c%"" %ge) Pet t one" 5ne$ the 0"esence o! %n& the "o'e o! ste#e&o"es n ts +%"ge %n& thus, conso"te& the " 0"esence- 7ence, 0et t one" $%s "es0ons +'e !o" the " s%!e'4 $h 'e on +o%"& the +%"ge) It s not enough th%t %00e''%nt=s em0'o4ees h%#e $%"ne& the '%+o"e"s not to ente" the +%"ge %!te" the h%tch h%& o0ene&- A00e''%nts em0'o4e"s shou'& h%#e su!! c ent'4 nst"ucte& to see to t th%t h%tch o! the +%"ge s not o0ene& +4 %n un%utho" .e& 0e"son %n& th%t the h%tch s not e%s '4 o0ene& +4 %n4one- 6% 'u"e to e;e"c se &ue & ' gence n the su0e"# s on o! ts em0'o4ees, %00e''%nt s ' %+'e !o" &%m%ges-

CAPAN AIRLINES VS CA ,AGANA, #IRANDA" *-R- No- 11A664 ROMERO; August <, 1EEA (%?%ng)
NATURE A00e%' +4 certiorari ! 'e& +4 0et t one" D%0%n A "' nes, Inc- (DA1) see5 ng the "e#e"s%' o! the &ec s on o! the Cou"t o! A00e%'s, : $h ch %!! "me& $ th mo& ! c%t on the %$%"& o! &%m%ges m%&e +4 the t" %' cou"t n !%#o" o! he"e n 0" #%te "es0on&ents En" 9ue Ag%n%, M%" % Ange'% N n% Ag%n%, A&e' % 6"%nc sco %n& Dose M "%n&%FACTS D Dose M "%n&% ("es0on&ent) +o%"&e& DA1 !' ght No- D1 001 n S%n 6"%nc sco, C%' !o"n % +oun& !o" M%n '%- En" 9ue Ag%n%, M%" % Ange'% N n% Ag%n% %n& A&e' % 6"%nc sco ("es0on&ent) 'e!t 1os Ange'es, C%' !o"n % !o" M%n '% # % DA1 !' ght No- D1 061-

SULPICIO LINES, INC. '. CA ,PA#ALARAN" 246 SCRA 2EE NCIASON; Du'4 1(, 1EE( (g'% s%)
NATURE Pet t on !o" "e# e$ on certiorari un&e" Ru'e 4( FACTS

30

TRANSPORTATION AND PUBLIC UTILITY LAW


+e he'& ' %+'e !o" &%m%ges !o" non)0e"!o"m%nce- Co"o''%" '4, $hen DA1 $%s 0"e#ente& !"om "esum ng ts !' ght to M%n '% &ue to the e!!ects o! MtP n%tu+o e"u0t on, $h%te#e" 'osses o" &%m%ges n the !o"m o! hote' %n& me%' e;0enses the st"%n&e& 0%ssenge"s ncu""e&, c%nnot +e ch%"ge& to DA1- 8et t s un&en %+'e th%t DA1 %ssume& the hote' e;0enses o! "es0on&ents !o" the " une;0ecte& o#e"n ght st%4 on Dune 1(, 1EE1- To ho'& DA1, n the %+sence o! +%& !% th o" neg' gence, ' %+'e !o" the %men t es o! ts st"%n&e& 0%ssenge"s +4 "e%son o! % !o"tu tous e#ent s too much o! % +u"&en to %ssume- 6u"the"mo"e, t h%s +een he'& th%t % "' ne 0%ssenge"s must t%5e such " s5s nc &ent to the mo&e o! t"%#e'In th s "eg%"&, %&#e"se $e%the" con& t ons o" e;t"eme c' m%t c ch%nges %"e some o! the 0e" 's n#o'#e& n % " t"%#e', the conse9uences o! $h ch the 0%ssenge" must %ssume o" e;0ect- A!te" %'', common c%"" e"s %"e not the nsu"e" o! %'' " s5sThe "e' %nce o! the CA n PA1 #s CA s m s0'%ce&- The !%ctu%' +%c5g"oun& o! the PA1 c%se s & !!e"ent !"om the nst%nt 0et t on- In th%t c%se the"e $%s n&ee& % !o"tu tous e#ent "esu't ng n the & #e"s on o! the PA1 !' ght- 7o$e#e", the un!o"eseen & #e"s on $%s $o"sene& $hen 20" #%te "es0on&ents (0%ssenge") $%s 'e!t %t the % "0o"t %n& cou'& not e#en h tch % " &e n % 6o"& 6 e"% 'o%&e& $ th PA1 0e"sonne',2 not to ment on the %00%"ent %0%th4 o! the PA1 st%t on m%n%ge" %s to the 0"e& c%ment o! the st"%n&e& 0%ssenge"sIn ' ght o! these c "cumst%nces, $e he'& th%t ! the !o"tu tous e#ent $%s %ccom0%n e& +4 neg'ect %n& m%'!e%s%nce +4 the c%"" e":s em0'o4ees, %n %ct on !o" &%m%ges %g% nst the c%"" e" s 0e"m ss +'e- Cn!o"tun%te'4, !o" 0" #%te "es0on&ents, none o! these con& t ons %"e 0"esent n the nst%nt 0et t on) 3e %"e not 0"e0%"e&, ho$e#e", to com0'ete'4 %+so'#e 0et t one" DA1 !"om %n4 ' %+ ' t4- It must +e note& th%t 0" #%te "es0on&ents +ought t c5ets !"om the Cn te& St%tes $ th M%n '% %s the " ! n%' &est n%t on3h 'e DA1 $%s no 'onge" "e9u "e& to &e!"%4 0" #%te "es0on&ents: ' # ng e;0enses &u" ng the " st%4 n N%" t% on %ccount o! the !o"tu tous e#ent, DA1 h%& the &ut4 to m%5e the necess%"4 %""%ngements to t"%ns0o"t 0" #%te "es0on&ents on the ! "st %#% '%+'e connect ng !' ght to M%n '%Pet t one" DA1 "enege& on ts o+' g%t on to 'oo5 %!te" the com!o"t %n& con#en ence o! ts 0%ssenge"s $hen t &ec'%ss ! e& 0" #%te "es0on&ents !"om 2t"%ns t 0%ssenge"s2 to 2ne$ 0%ssenge"s2 %s % "esu't o! $h ch 0" #%te "es0on&ents $e"e o+' ge& to m%5e the necess%"4 %""%ngements themse'#es !o" the ne;t !' ght to M%n '%- P" #%te "es0on&ents $e"e 0'%ce& on the $% t ng ' st !"om Dune 20 to Dune 24- To %ssu"e themse'#es o! % se%t on %n %#% '%+'e !' ght, the4 $e"e com0e''e& to st%4 n the % "0o"t the $ho'e &%4 o! Dune 22, 1EE1 %n& t $%s on'4 %t AH00 0-m- o! the %!o"es% & &%te th%t the4 $e"e %&# se& th%t the4 cou'& +e %ccommo&%te& n s% & !' ght $h ch !'e$ %t %+out EH00 %-m- the ne;t &%4Conse9uent'4, the %$%"& o! nom n%' &%m%ges s n o"&e"Disposition 37ERE6ORE, n # e$ o! the !o"ego ng, the &ec s on o! the CA s he"e+4 MOGI6IEG- The %$%"& o! %ctu%', mo"%' %n& e;em0'%"4 &%m%ges s he"e+4 GE1ETEG- Pet t one" DA1 s o"&e"e& to 0%4 e%ch o! the 0" #%te "es0on&ents nom n%' &%m%ges n the sum o! P100,000-00 e%ch nc'u& ng %tto"ne4: s !ees o! P(0,000-00 0'us costs2- Gu"%t on o! "es0ons + ' t4 Ca+g.o ') #RR ,S4pra"

-A2010-

PROF. RODRIGO LOPE QUIMBO


ts c%"s to 'et on nten& ng 0%ssenge"s %t othe" 0o nts th%n those %00o nte& !o" sto00%ge- In !%ct t $ou'& +e m0oss +'e to o0e"%te % s4stem o! st"eet c%"s ! % com0%n4 eng%ge n th s +us ness $e"e "e9u "e& to sto0 %n4 %n& e#e"4$he"e to t%5e on 0eo0'e $ho $e"e too n&o'ent, o" $ho m%g ne themse'#es to +e n too g"e%t % hu""4, to go to the 0"o0e" 0'%ces !o" +o%"& ng the c%"s- A'though the moto"m%n o! th s c%" $%s not +oun& to sto0 to 'et the 0'% nt !! on, t $%s h s &ut4 to &o %ct th%t $ou'& h%#e the e!!ect o! nc"e%s ng the 0'% nt !!:s 0e" ' $h 'e he $%s %ttem0t ng to +o%"& the c%"- The 0"em%tu"e %cce'e"%t on o! the c%" $%s, n ou" o0 n on, % +"e%ch o! th s &ut4) The "e'%t on +et$een % c%"" e" o! 0%ssenge"s !o" h "e %n& ts 0%t"ons s o! % cont"%ctu%' n%tu"e; %n& n !% 'u"e on the 0%"t o! the c%"" e" to use &ue c%"e n c%""4 ng ts 0%ssenge"s s%!e'4 s % +"e%ch o! &ut4 ( cul.a contructual)- 6u"the"mo"e, the &ut4 th%t the c%"" e" o! 0%ssenge"s o$es to ts 0%t"ons e;ten&s to 0e"sons +o%"& ng the c%"s %s $e'' %s to those %' ght ng the"e!"om3he"e ' %+ ' t4 %" ses !"om % me"e to"t ( cul.a a,uiliana), not n#o'# ng % +"e%ch o! 0os t #e o+' g%t on, %n em0'o4e", o" m%ste", m%4 e;cu'0%te h mse'!, un&e" the '%st 0%"%g"%0h o! %"t c'e 1E0/ CC, +4 0"o# & ng th%t he h%& e;e"c se& &ue &eg' gence to 0"e#ent the &%m%ge; $he"e%s th s &e!ense s not %#% '%+'e ! the ' %+ ' t4 o! the m%ste" %" ses !"om % +"e%ch o! cont"%uctu%' &ut4 (cul.a contractual )- In the c%se%t +%", the com0%n4 0'e%&e& %s % s0ec %' &e!ense th%t t h%& use& %'' the &e' gence o! % goo& !%the" o! % !%m '4 to 0"e#ent the &%m%ge su!!e"e& +4 the 0'% nt !!; %n& to est%+' sh th s content on the com0%n4 nt"o&uce& test mon4 sho$ ng th%t &ue c%"e h%& +een use& n t"% n ng %n& nst"uct ng the moto"m%n n ch%"ge o! th s c%" n h s %"t- ,ut th s 0"oo! s ""e'e#%nt n # e$ o! the !%ct th%t the ' %+ ' t4 n#o'#e& $%s &e" #e& !"om % +"e%ch o! o+' g%t on un&e" %"t c'e 1101 o! the C # ' Co&e %n& "e'%te& 0"o# s onsCn&e" %"t c'e 1101 %n& "e'%te& 0"o# s ons CC, n &e%' ng $ th the +"e%ch o! o+' g%t on, the cou"t s g #en % & sc"et on to m t g%te ' %+ ' t4 %cco"& ng to the c "cumst%nces o! the c%se (%"t 110/)- No such gene"%' & sc"et on s g #en +4 the Co&e n &e%' ng $ th ' %+ ' t4 %" s ng un&e" %"t c'e 1E02; %'though 0oss +'4 the s%me en& s "e%che& +4 cou"ts n &e%' ng $ th the '%tte" !o"m o! ' %+ ' t4 +ec%use o! the '%t tu&e o! the cons &e"%t ons 0e"t nent to c%ses %" s ng un&e" th s %"t c'e) As to the cont" +uto"4 neg' gence o! the 0'% nt !!, t $%s cons &e"e& %s % m t g%t ng c "cumst%nce un&e" %"t c'e 110/ CC- It s o+# ous th%t the 0'% nt !!:s neg' gence n %ttem0t ng to +o%"& the mo# ng c%" $%s not the 0"o; m%te c%use o! the n?u"4- The & "ect %n& 0"o; m%te c%use o! the n?u"4 $%s the %ct o! %00e''%nt:s moto"m%n n 0utt ng on the 0o$e" 0"em%tu"e'4- A 0e"son +o%"& ng % mo# ng c%" must +e t%5en to %ssume the " s5 o! n?u"4 !"om +o%"& ng the c%" un&e" the con& t ons o0en to h s # e$, +ut he c%nnot !% "'4 +e he'& to %ssume the " s5 th%t the moto"m%n, h%# ng the s tu%t on n # e$, $ '' nc"e%se h s 0e" ' +4 %cce'e"%t ng the s0ee& o! the c%" +e!o"e he s 0'%nte& s%!e'4 on the 0'%t!o"mThe "u'e he"e %00' c%+'e seems to +e %n%'ogous to, ! not &ent c%' $ th the &oct" ne o! 2the '%st c'e%" ch%nce-2 The cont" +uto"4 neg' gence o! the 0%"t4 n?u"e& $ '' not &e!e%t the %ct on ! t +e sho$n th%t the &e!en&%nt m ght, +4 the e;e"c se o! "e%son%+'e c%"e %n& 0"u&ence, h%#e %#o &e& the conse9uences o! the neg' gence o! the n?u"e& 0%"t4The neg' gence o! the 0'% nt !! $%s, ho$e#e", cont" +uto"4 to the %cc &ent %n& must +e cons &e"e& %s % m t g%t ng c "cumst%nce) 3 th "es0ect to the e!!ect o! th s n?u"4 u0on the 0'% nt !!:s e%"n ng

DEL PRADO V #ERALCO 97 P0(/ E88 STREET? #ar.0 F, :E7E ,G(4/(a"


Na*4re Ign%c o &e' P"%&o nst tute& %n& %ct on to "eco#e" &%m%ges n the %mount o! P(0,000 !o" 0e"son%' n?u" es %''ege& to h%#e +een c%use& +4 the neg' gence o! te &e!en&%nt, the M%n '% E'ect" c Com0%n4, n the o0e"%t on o! one o! ts st"eet c%"s n the C t4 o! M%n '%- TC %$%"&e& the 0'% nt !! the sum o! P10,000, %s &%m%ges, $ th costs o! su t, %n& the &e!en&%nt %00e%'e&Fa.*) ) MERA1CO s eng%ge& n o0e"%t ng st"eet c%"s n the C t4 !o" the con#e4%nce o! 0%ssenge"s; %n& on the mo"n ng o! No#em+e" 1A, 1E2(, Teo&o" co 6'o"enc %no $%s the &" #e" n ch%"ge o! c%" No- <4 "unn ng !"om e%st to $est on R- 7 &%'go St"eet, the scene o! the %cc &ent +e ng %t % 0o nt ne%" %n nte"sect on- A!te" the c%" h%& sto00e& %t ts %00o nte& 0'%ce !o" t%5 ng on %n& 'ett ng o!! 0%ssenge"s, ?ust e%st o! the nte"sect on, t "esume& ts cou"se %t % mo&e"%te s0ee& un&e" the gu &%nce o! the moto"m%n- The c%" h%& 0"ocee&e& on'4 % sho"t & st%nce $hen Ign%c o &e' P"%&o, "%n %c"oss the st"eet to c%tch the c%", h s %00"o%ch +e ng m%&e !"om the 'e!t- The c%" $%s o! the 5 n& h%# ng ent"%nce %n& e; st %t e the" en&, %n& the mo#ement o! the 0'% nt !! $%s so t me& th%t he %"" #e& %t the !"ont ent"%nce o! the c%" %t the moment $hen the c%" $%s 0%ss ng) The 0'% nt !! %n& h s $ tness C " %co *ue#%"% ten& to sho$ th%t the 0'% nt !!, u0on %00"o%ch ng the c%", "% se& h s h%n& %s %n n& c%t on to the moto"m%n o! h s &es "e to +o%"& the c%"- In "es0onse to $h ch the moto"m%n e%se& u0 % ' tt'e, $ thout sto00 ng- P'% nt !! then se .e&, $ th h s h%n&, the !"ont 0e"0en& cu'%" h%n&s0ot, %t the s%me t me 0'%c ng h s 'e!t !oot u0on the 0'%t!o"m- 7o$e#e", +e!o"e the 0'% nt !!:s 0os t on h%& +ecome secu"e, %n& e#en +e!o"e h s "% se& " ght !oot h%& "e%che& the !'%t!o"m, the moto"m%n %00' e& the 0o$e", $ th the "esu't th%t the c%" g%#e % s' ght 'u"ch !o"$%"&- Th s su&&en m0u'se to the c%" c%use& the 0'% nt !! to !%'' to the g"oun&, %n& h s " ght !oot $%s c%ught %n& c"ushe& +4 the mo# ng c%"- The ne;t &%4 the mem+e" h%& to +e %m0ut%te& n the hos0 t%') Acco"& ng to the moto"m%n, he & & not see the 0'% nt !! %ttem0t ng to +o%"& the c%"; th%t he & & not %cce'e"%te the s0ee& o! the c%" %s c'% me& +4 the 0'% nt !!:s $ tnesses; %n& th%t he n !%ct 5ne$ noth ng o! the nc &ent unt ' %!te" the 0'% nt !! h%& +een hu"t %n& some one c%''e& to h m to sto0He/) SC $%s not con# nce& $ th the moto"m%n:s st%tement- The !"ont h%n&0ost $h ch, %s %'' $ tness %g"ee, $%s g"%s0e& +4 the 0'% nt !! n %ttem0t ng to +o%"& the c%", $%s mme& %te'4 on the 'e!t s &e o! the moto"m%n) The"e s no o+' g%t on on the 0%"t o! % st"eet "% '$%4 com0%n4 to sto0

31

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0o$e", %'though he 'ost h s !oot, he s %+'e to use %n %"t ! c %' mem+e" $ thout g"e%t ncon#en ence %n& h s e%"n ng c%0%c t4 h%s 0"o+%+'4 not +een "e&uce& +4 mo"e th%n /0 0e" centum- 7e s cons &e"e& %&e9u%te'4 com0ens%te& +4 %n %$%"& o! P2,(00D()po)(*('e It +e ng un&e"stoo&, the"e!o"e, th%t the %00e%'e& ?u&gment s mo& ! e& +4 "e&uc ng the "eco#e"4 to the sum o! P2,(00, the ?u&gment, %s thus mo& ! e&, s %!! "me&Separa*e Op(+(o+ COHNSON, *.+ & ssent ngH Du&gement o! the 1C shou'& +e "e#o5e& +ec%useH (%) Th%t the moto"m%n m%n%ge& the c%" c%"e!u''4 %n& $ th o"& n%"4 0"u&ence %t the moment the %''ege& %cc &ent occu"e&; (+) Th%t the %00e''ee %cte& $ th m0"u&ence %n& '%c5 o! &ue c%"e n %ttem0t ng to +o%"& % st"eet c%" $h 'e the s%me $%s n mot on; %n& (c) Th%t he cont" +ute& to h s o$n n?u"4, $ thout %n4 neg' gence o" m%' ce o" m0"u&ence on the 0%"t o! the &e!en&%ntThe"e s noth ng n the "eco"& $h ch e#en "emote'4 ?ust ! es % cont" +ut on o! &%m%ges +et$een the %00e''ee %n& the %00e''%nt- The %00e''ee shou'& +e "e9u "e& to su!!e" the &%m%ges $h ch he h mse'!, th"ough h s o$n neg' gence, occ%s one&, $ thout %n4 neg' gence, m0"u&ence o" m%' ce on the 0%"t o! the %00e''%nt-

-A2010-

PROF. RODRIGO LOPE QUIMBO


),us- No- /0 o! the Me& n% T"%ns0o"t%t on, o$ne& +4 "es0on&ent un&e" % ce"t ! c%te o! 0u+' c con#en ence, 'e!t !o" P%s%4 !"om C%# te- The"e $e"e 1A 0%ssenge"s nc'u& ng ts "egu'%" ch%u!!eu" S%4'on %n& Du%n ,%t%c'%n- At %+out 2 %-m- one o! the !"ont t "es +u"st, the +us +eg%n to . g).%g, !e'' nto % & tch %n& tu"ne& tu"t'e- Most got out +ut ,%t%c'%n %n& / othe" 0%ssenge"s got stuc5; the"e $%s no e# &ence th%t the &" #e", con&ucto" o" %n4 o! the 0%ssenge"s %ttem0te& to he'0 them- A!te" h%'! %n hou" %+out 10 men c%me, one c%""4 ng % +%m+oo to"ch !ue'e& $ th 0et"o'eum, %cc &ent%''4 gn t ng g%so' ne th%t h%& 'e%5e&, +u"n ng the +us %'ong $ th the 4 t"%00e& 0%ssenge"s)Du%n=s $ &o$, S%'u& B ''%nue#%, sue& Me& n% !o" com0ens%to"4, mo"%', e;em0'%"4 &%m%ges %n& %tto"ne4=s !ees %mount ng to PA<,1(0- The C6I o! C%# te %$%"&e& them P15 0'us P600 %tto"ne4=s !ee 0'us P100, the #%'ue o! ,%t%c'%n=s me"ch%n& se $h ch $%s 'ost n the ! "e- ,oth 0%"t es %00e%'e&; Me& n% en&o"se& t to the SCISSUE (1) 3ON Me& n% s ' %+'e !o" S%4'on=s neg' gence (2) 3ON Me& n% s ' %+'e !o" ,%t%c'%n=s me"ch%n& se 'ost n the ! "e HELD (1) 8ES- A"t c'e 1<(E o! the Ne$ C # ' Co&e 0"o# &esH K -ommon carriers are liable for the death of or in3uries to .assengers through the negligence or willful acts of the former's em.loyees, although such em.loyees may have acted beyond the sco.e of their authority or in violation of the order of the common carriers1 This liability of the common carriers does not cease u.on .roof that they e/ercised all the diligence of a good father of a family in the selection and su.ervision of their em.loyees1E )The c%se n#o'#es % +"e%ch o! cont"%ct o! t"%ns0o"t%t on !o" h "e +4 Me& n% T"%ns-, h%# ng un&e"t%5en to c%""4 ,%t%c'%n s%!e'4 to h s &est n%t on- The"e $%s neg' gence on the 0%"t o! &e!en&%nt th"ough h s %gent, the &" #e"- The"e s e# &ence to sho$ th%t S%4'on $%s s0ee& ng %t the t me the t "e +'e$ out- The 0"o; m%te c%use o! ,%t%c'%n=s &e%th $%s not the ! "e, +ut the o#e"tu"n ng o! the +us, c%use& +4 S%4'on=s neg' gent &" # ng- (P"o; m%te c%useH th%t c%use, $h ch, n n%tu"%' %n& cont nuous se9uence, un+"o5en +4 %n4 e!! c ent nte"#en ng c%use, 0"o&uces the n?u"4, %n& $ thout $h ch the "esu't $ou'& not h%#e occu""e&)- Th s 'e& to the g%s 'e%5 ng, the com ng o! the men $ th to"ches to he'0, %n& the +u"n ng o! the +us- Mo"e neg' gence on the 0%"t o! the &" #e" %n& con&ucto" $%s sho$n %s the4 !% 'e& to %'e"t %n4one o! the 'e%5 ng g%s)the +us t "es $e"e %'"e%&4 o'& %n& &es0 te +e ng g #en nst"uct ons to ch%nge them e%"' e", S%4'on & & not com0'4- S%4'on h%& not +een & ' gent %n& h%& not t%5en the necess%"4 0"ec%ut ons to nsu"e the s%!et4 o! the 0%ssenge"s- Cn&e" A"t- 1<(E, the common c%"" e" s ' %+'e !o" such neg' gence o! ts %gents(2) 8ES- See A"t c'es 1<// %n& 1<((- A"t- 1</6 st%tesH FThe e/traordinary res.onsibility of the common carrier lasts from the time the goods are unconditionally .laced in the .ossession of, and received by the carrier for trans.ortation until the same are delivered, actually or constructively, by the carrier to the consignee, or to the

+%4ong !"om the con&ucto"- 7e '%n&e& on the s &e o! the "o%& %'most n !"ont o! the sh%&e& 0'%ce $he"e he 'e!t h s $ !e %n& ch '&"en- At th%t 0"ec se t me, he s%$ 0eo0'e +eg nn ng to g%the" %"oun& the +o&4 o! the ch '& '4 ng 0"ost"%te on the g"oun&, he" s5u'', c"ushe&, %n& $ thout ' !eThe ch '& $%s none othe" th%n h s &%ughte" R%9ue', $ho $%s "un o#e" +4 the +us n $h ch she "o&e e%"' e" togethe" $ th he" 0%"entsISSUE 3ON %s to the ch '&, $ho $%s %'"e%&4 'e& +4 the !%the" to % 0'%ce %+out ( mete"s %$%4 !"om the +us, the ' %+ ' t4 o! the c%"" e" !o" he" s%!et4 un&e" the cont"%ct o! c%"" %ge %'so 0e"s ste& HELD 8ES Ratio: It h%s +een "ecogn .e& %s % "u'e th%t the "e'%t on o! c%"" e" %n& 0%ssenge" &oes not ce%se %t the moment the 0%ssenge" %' ghts !"om the c%"" e":s #eh c'e %t % 0'%ce se'ecte& +4 the c%"" e" %t the 0o nt o! &est n%t on, +ut cont nues unt ' the 0%ssenge" h%s h%& % "e%son%+'e t me o" % "e%son%+'e o00o"tun t4 to 'e%#e the c%"" e":s 0"em ses- An&, $h%t s % "e%son%+'e t me o" % "e%son%+'e &e'%4 $ th n th s "u'e s to +e &ete"m ne& !"om %'' the c "cumst%ncesReasoning: In the 0"esent c%se, the !%the" "etu"ne& to the +us to get one o! h s +%gg%ges $h ch $%s not un'o%&e& $hen the4 %' ghte& !"om the +usR%9ue', the ch '& th%t she $%s, must h%#e !o''o$e& the !%the"- 7o$e#e", %'though the !%the" $%s st '' on the "unn ng +o%"& o! the +us %$% t ng !o" the con&ucto" to h%n& h m the +%g o" +%4ong, the +us st%"te& to "un, so th%t e#en he (the !%the") h%& to ?um0 &o$n !"om the mo# ng #eh c'e- It $%s %t th s nst%nce th%t the ch '&, $ho must +e ne%" the +us, $%s "un o#e" %n& 5 ''e&- In the c "cumst%nces, t c%nnot +e c'% me& th%t the c%"" e":s %gent h%& e;e"c se& the 2utmost & ' gence2 o! % 2#e"4 c%ut ous 0e"son2 "e9u "e& +4 A"t c'e 1<(( o! the C # ' Co&e to +e o+se"#e& +4 % common c%"" e" n the & sch%"ge o! ts o+' g%t on to t"%ns0o"t s%!e'4 ts 0%ssenge"s- In the ! "st 0'%ce, the &" #e", %'though sto00 ng the +us, ne#e"the'ess & & not 0ut o!! the eng ne- Secon&'4, he st%"te& to "un the +us e#en +e!o"e the +us con&ucto" g%#e h m the s gn%' to go %n& $h 'e the '%tte" $%s st '' un'o%& ng 0%"t o! the +%gg%ges o! the 0%ssenge"s M%" %no ,e't"%n %n& !%m '4- The 0"esence o! s% & 0%ssenge"s ne%" the +us $%s not un"e%son%+'e %n& the4 %"e, the"e!o"e, to +e cons &e"e& st '' %s 0%ssenge"s o! the c%"" e", ent t'e& to the 0"otect on un&e" the " cont"%ct o! c%"" %ge,ut e#en %ssum ng %"guen&o th%t the cont"%ct o! c%"" %ge h%s %'"e%&4 te"m n%te&, he"e n 0et t one" c%n +e he'& ' %+'e !o" the neg' gence o! ts &" #e", %s "u'e& +4 the Cou"t o! A00e%'s, 0u"su%nt to A"t c'e 21A0 o! the C # ' Co&e-

LA #ALLORCA '). CA ,!ELTRAN" 1< SCRA </E Du' 2<, 1E66H ,ARRERA (%the)
FACTS P'% nt !!s, hus+%n& %n& $ !e, togethe" $ th the " m no" &%ughte"s, n%me'4 M '%g"os, R%9ue' (%+out 4)1F2 4e%"s o'&), %n& 6e +o%"&e& the P%m+usco ,us- At the t me, the4 $e"e c%""4 ng $ th them !ou" 0 eces o! +%gg%ges cont% n ng the " 0e"son%' +e'ong ngsThe +us sto00e& %t An%o- M%" %no ,e't"%n, then c%""4 ng some o! the " +%gg%ges, $%s the ! "st to get &o$n the +us, !o''o$e& +4 h s $ !e %n& h s ch '&"en- M%" %no 'e& h s com0%n ons to % sh%&e& s0ot on the 'e!t 0e&est" %ns s &e o! the "o%& %+out !ou" o" ! #e mete"s %$%4 !"om the #eh c'e- A!te"$%"&s, he "etu"ne& to the +us n cont"o#e"s4 to get h s othe" +%4ong, $h ch he h%& 'e!t +eh n&, +ut n so &o ng, h s &%ughte" R%9ue' !o''o$e& h m unnot ce& +4 he" !%the"- 3h 'e s% & M%" %no ,e't"%n $%s on the "unn ng +o%"& o! the +us $% t ng !o" the con&ucto" to h%n& h m h s +%4ong $h ch he 'e!t un&e" one o! ts se%ts ne%" the &oo"; the +us, $hose moto" $%s not shut o!! $h 'e un'o%& ng, su&&en'4 st%"te& mo# ng !o"$%"&, e# &ent'4 to "esume ts t" 0, not$ thst%n& ng the !%ct th%t the con&ucto" h%s not g #en the &" #e" the custom%"4 s gn%' to st%"t, s nce s% & con&ucto" $%s st '' %tten& ng to the +%gg%ge 'e!t +eh n& +4 M%" %no ,e't"%n- Inc &ent%''4, $hen the +us $%s %g% n 0'%ce& nto % com0'ete sto0, t h%& t"%#e''e& %+out ten mete"s !"om the 0o nt $he"e the 0'% nt !!s h%& gotten o!!Sens ng th%t the +us $%s %g% n n mot on, M%" %no ,e't"%n mme& %te'4 ?um0e& !"om the "unn ng +o%"& $ thout gett ng h s

VDA. DE !ATACLAN V #EDINA 104 P7I1 1A1 MONTEMA8OR; Oct- 22, 1E(< (P 4o)
FACTS

32

TRANSPORTATION AND PUBLIC UTILITY LAW


.erson who has a right to receive them, without .re3udice to the .rovisions of Article 1%6!1E )S nce ,%t%c'%n=s goo&s $e"e +u"ne& n t"%ns t, Me& n% s ' %+'e !o" such 'oss- The cou"t !oun& PA00 !o" %tto"ne4=s !ees %n& !o" the 'oss o! the me"ch%n& se c%"" e& +4 ,%t%c'%n %s %&e9u%te com0ens%t onDisposition In # e$ o! the !o"ego ng, the &ec s on %00e%'e& !"om s %!! "me&

-A2010-

PROF. RODRIGO LOPE QUIMBO


7. ES Ratio. Cn&e" the '%$, common c%"" e"s %"e, !"om the n%tu"e o! the " +us ness %n& !o" "e%sons o! 0u+' c 0o' c4, +oun& to o+se"#e e;t"%o"& n%"4 & ' gence n the # g '%nce o#e" the goo&s %n& !o" the s%!et4 o! the 0%ssenge"s t"%ns0o"te& +4 them, %cco"& ng to %'' the c "cumst%nces o! e%ch c%se- Mo"e 0%"t cu'%"'4, % common c%"" e" s +oun& to c%""4 the 0%ssenge"s s%!e'4 %s !%" %s hum%n c%"e %n& !o"es ght c%n 0"o# &e, us ng the utmost & ' gence o! #e"4 c%ut ous 0e"sons, $ th % &ue "eg%"& !o" %'' the c "cumst%nces- Thus, $he"e % 0%ssenge" & es o" s n?u"e&, the common c%"" e" s 0"esume& to h%#e +een %t !%u't o" to h%#e %cte& neg' gent'4Th s g #es " se to %n %ct on !o" +"e%ch o! cont"%ct o! c%"" %ge $he"e %'' th%t s "e9u "e& o! 0'% nt !! s to 0"o#e the e; stence o! the cont"%ct o! c%"" %ge %n& ts non)0e"!o"m%nce +4 the c%"" e", th%t s, the !% 'u"e o! the c%"" e" to c%""4 the 0%ssenge" s%!e'4 to h s &est n%t on, $h ch, n the nst%nt c%se, necess%" '4 nc'u&es ts !% 'u"e to s%!egu%"& ts 0%ssenge" $ th e;t"%o"& n%"4 & ' gence $h 'e such "e'%t on su+s sts)The 0"esum0t on s, the"e!o"e, est%+' she& +4 '%$ th%t n c%se o! % 0%ssenge":s &e%th o" n?u"4 the o0e"%to" o! the #esse' $%s %t !%u't o" neg' gent, h%# ng !% 'e& to e;e"c se e;t"%o"& n%"4 & ' gence, %n& t s ncum+ent u0on t to "e+ut the s%me- Th s s n conson%nce $ th the %#o$e& 0o' c4 o! the St%te to %!!o"& !u'' 0"otect on to the 0%ssenge"s o! common c%"" e"s $h ch c%n +e c%"" e& out on'4 +4 m0os ng % st" ngent st%tuto"4 o+' g%t on u0on the '%tte"- Concom t%nt'4, th s Cou"t h%s ' 5e$ se %&o0te& % " g & 0ostu"e n the %00' c%t on o! the '%$ +4 e;%ct ng the h ghest &eg"ee o! c%"e %n& & ' gence !"om common c%"" e"s, +e%" ng utmost n m n& the $e'!%"e o! the 0%ssenge"s $ho o!ten +ecome h%0'ess # ct ms o! n& !!e"ent %n& 0"o! t)o" ente& c%"" e"sDisposition. 37ERE6ORE, the 0et t on s GENIEG %n& the ?u&gment %00e%'e& !"om s he"e+4 A66IRMEG n toto- SO ORGEREG-

A!OITIZ VS. CA 1<E SCRA E( RE*A1AGO, No#em+e" 6, 1EAE (ch%)


NATURE A00e%' +4 ce"t o"%" see5 ng "e# e$ o! CA &ec s on FACTS )An%c'eto B %n% +o%"&e& MFB Anton %, o$ne& +4 A+o t ., %t the 0o"t %t S%n Dose, Occ &ent%' M n&o"o, +oun& !o" M%n '%- The ne;t &%4, the s% & #esse' %"" #e& %t P e" 4, No"th 7%"+o", M%n '% %n& the 0%ssenge"s & sem+%"5e&, % g%ng0'%n5 h%# ng +een 0"o# &e& connect ng the s &e o! the #esse' to the 0 e"- An%c'eto nste%& & sem+%"5e& on the th "& &ec5 $h ch $%s on the 'e#e' $ th the 0 e"- A!te" s% & #esse' h%& '%n&e&, the P onee" Ste#e&o" ng Co"0o"%t on too5 o#e" the e;c'us #e cont"o' o! the c%"goes 'o%&e& on MFB Anton % 0u"su%nt to the MOA +et$een P onee" %n& A+o t .)The c"%ne o$ne& +4 P onee" %n& o0e"%te& +4 ts o0e"%to" $%s 0'%ce& %'ongs &e MFB Anton % %n& 1 hou" %!te" the 0%ssenge"s h%& & sem+%"5e&, t st%"te& o0e"%t on +4 un'o%& ng the c%"goes !"om s% & #esse'- An%c'eto $ent +%c5 to the #esse' to get some o! h s c%"goes $hen the c"%ne h t h m, 0 nn ng h m +et$een the #esse'=s s &e %n& the c"%ne- 7e $%s +ought to the hos0 t%' +ut & e& / &%4s %!te"- 7e $%s on'4 40 4e%"s o'&)An%c'eto=s 0%"ents ! 'e& %ct on !o" +"e%ch o! cont"%ct o! c%"" %ge %g% nst A+o t .- A+o t . ! 'e& TPC %g% nst P onee" TCH A+o t . 0%4 B %n%s +ut A+o t . cou'& co''ect !"om P onee" $h%te#e" t $ou'& 0%4 )M6R, TC u' tH P onee" %+so'#e&, MOA +et$een A+o t . %n& P onee" "e!e"s on'4 to P onee"=s ' %+ ' t4 n c%se o! 'oss o" &%m%ge to goo&s h%n&'e& +4 t ,CT not 0e"son%' n?u" es )CAH %!! "me& @notH An%c'eto $%s gu 't4 o! cont" +uto"4 neg' gence +ut A+o t .= neg' gence n 0"em%tu"e'4 tu"n ng o#e" the #esse' to P onee" $%s g"e%te" )A+o t .= content onH 1 hou" h%& e'%0se& !"om t me An%c'eto & sem+%"5e& !"om MFB Anton %, he $%s g #en mo"e th%n %m0'e o00o"tun t4 to un'o%& h s c%"goes, h s 0"esence no 'onge" "e%son%+'e %n& he ce%se& to +e % 0%ssenge"ISSUE :. 3ON An%c'eto $%s st '' % 0%ssenge" o! A+o t . $hen he & e& 2- 3ON A+o t . cou'& +e he'& ' %+'e !o" the &e%th o! An%c'eto

HELD :. ES Ratio. The "e'%t on o! c%"" e" %n& 0%ssenge" cont nues unt ' the 0%ssenge" h%s +een '%n&e& %t the 0o"t o! &est n%t on %n& h%s 'e!t the #esse' o$ne"=s &oc5 o" 0"em ses- Once c"e%te&, the "e'%t onsh 0 $ '' not o"& n%" '4 te"m n%te unt ' the 0%ssenge" h%s, %!te" "e%ch ng h s &est n%t on, s%!e'4 %' ghte& !"om the c%"" e":s con#e4%nce o" h%& % "e%son%+'e o00o"tun t4 to 'e%#e the c%"" e":s 0"em ses- A'' 0e"sons $ho "em% n on the 0"em ses % "e%son%+'e t me %!te" 'e%# ng the con#e4%nce %"e to +e &eeme& 0%ssenge"s, %n& $h%t s % "e%son%+'e t me o" % "e%son%+'e &e'%4 $ th n th s "u'e s to +e &ete"m ne& !"om %'' the c "cumst%nces, %n& nc'u&es % "e%son%+'e t me to see %!te" h s +%gg%ge %n& 0"e0%"e !o" h s &e0%"tu"e)The c%"" e")0%ssenge" "e'%t onsh 0 s not te"m n%te& me"e'4 +4 the !%ct th%t the 0e"son t"%ns0o"te& h%s +een c%"" e& to h s &est n%t on !, !o" e;%m0'e, such 0e"son "em% ns n the c%"" e":s 0"em ses to c'% m h s +%gg%ge)Th%t "e%son%+'eness o! t me shou'& +e m%&e to &e0en& on the %tten& ng c "cumst%nces o! the c%se, such %s the 5 n& o! common c%"" e", the n%tu"e o! ts +us ness, the customs o! the 0'%ce, %n& so !o"th, %n& the"e!o"e 0"ec'u&es % cons &e"%t on o! the t me e'ement 0e" se $ thout t%5 ng nto %ccount such othe" !%cto"sReasoning. An nte"#%' o! one (1) hou" h%& e'%0se& +e!o"e the # ct m met the %cc &ent- The 0" m%"4 !%cto" to +e cons &e"e& s the e; stence o! % "e%son%+'e c%use %s $ '' ?ust !4 the 0"esence o! the # ct m on o" ne%" the 0et t one":s #esse')It s o! common 5no$'e&ge th%t, +4 the #e"4 n%tu"e o! 0et t one":s +us ness %s % sh 00e", the 0%ssenge"s o! #esse's %"e %''otte& % 'onge" 0e" o& o! t me to & sem+%"5 !"om the sh 0 th%n othe" common c%"" e"s such %s % 0%ssenge" +us- 3 th "es0ect to the +u'5 o! c%"goes %n& the num+e" o! 0%ssenge"s t c%n 'o%&, such #esse's %"e c%0%+'e o! %ccommo&%t ng % + gge" #o'ume o! +oth %s com0%"e& to the c%0%c t4 o! % "egu'%" commute" +us- Conse9uent'4, % sh 0 0%ssenge" $ '' nee& %t 'e%st %n hou" %s s the usu%' 0"%ct ce, to & sem+%"5 !"om the #esse' %n& c'% m h s +%gg%ge $he"e%s % +us 0%ssenge" c%n e%s '4 get o!! the +us %n& "et" e#e h s 'ugg%ge n % #e"4 sho"t 0e" o& o! t me)3hen the %cc &ent occu""e&, the # ct m $%s n the %ct o! un'o%& ng h s c%"goes, $h ch he h%& e#e"4 " ght to &o, !"om 0et t one":s #esse'- As e%"' e" st%te&, % c%"" e" s &ut4 +oun& not on'4 to +" ng ts 0%ssenge"s s%!e'4 to the " &est n%t on +ut %'so to %!!o"& them % "e%son%+'e t me to c'% m the " +%gg%ge)It s not &e! n te'4 sho$n th%t one (1) hou" 0" o" to the nc &ent, the # ct m h%& %'"e%&4 & sem+%"5e& !"om the #esse'- Pet t one" !% 'e& to 0"o#e th s- 3h%t s c'e%" to us s th%t %t the t me the # ct m $%s t%5 ng h s c%"goes, the #esse' h%& %'"e%&4 &oc5e& %n hou" e%"' e"- In conson%nce $ th common sh 00 ng 0"oce&u"e %s to the m n mum t me o! one (1) hou" %''o$e& !o" the 0%ssenge"s to & sem+%"5, t m%4 +e 0"esume& th%t the # ct m h%& ?ust gotten o!! the #esse' $hen he $ent to "et" e#e h s +%gg%ge- 8et, e#en ! he h%& %'"e%&4 & sem+%"5e& %n hou" e%"' e", h s 0"esence n 0et t one":s 0"em ses $%s not $ thout c%use- The # ct m h%& to c'% m h s +%gg%ge $h ch $%s 0oss +'e on'4 one (1) hou" %!te" the #esse' %"" #e& s nce t $%s %&m tte&'4 st%n&%"& 0"oce&u"e n the c%se o! 0et t one":s #esse's th%t the un'o%& ng o0e"%t ons sh%'' st%"t on'4 %!te" th%t t me-

PHILIPPINE AIRLINES ' CA ,ZAPATOS" ,E11OSI11O; Se0tem+e" 1(, 1EE/ 2(E SCRA 426 (?o?o)
FACTS Pe&"o M%0%tos ! 'e& % com0'% nt !o" &%m%ges !o" +"e%ch o! cont"%ct o! c%"" %ge PA1 $ th the RTC o! O.%m . C t4- Acco"& ng to h m, on Aug2, 1E<6, he $%s %mong 21 0%ssenge"s o! PA1 6' ght 4<< th%t too5 o!! !"om Ce+u +oun& !o" O.%m . C t4- The "out ng o! th s !' ght $%s Ce+u) O.%m .)Cot%+%to- 3h 'e on !' ght %n& ?ust %+out 1( m nutes +e!o"e '%n& ng %t O.%m . C t4, the 0 'ot "ece #e& % "%& o mess%ge th%t the % "0o"t $%s c'ose& &ue to he%#4 "% ns %n& nc'ement $e%the" %n& th%t he shou'& 0"ocee& to Cot%+%to C t4 nste%&) C0on %"" #%' %t Cot%+%to C t4, the PA1 St%t on Agent n!o"me& the 0%ssenge"s o! the " o0t ons to "etu"n to Ce+u on 6' ght (60 o! the s%me &%4 %n& thence to O.%m . C t4 on Aug- 4, 1E<(, o" t%5e the ne;t !' ght to Ce+u the !o''o$ ng &%4, o" "em% n %t Cot%+%to %n& t%5e the ne;t %#% '%+'e !' ght to O.%m . C t4 on Aug- (, 1E<(- The St%t on Agent ' 5e$ se n!o"me& them th%t 6' ght (60 +oun& !o" M%n '% $ou'& m%5e % sto0)o#e" %t Ce+u to +" ng some o! the & #e"te& 0%ssenge"s; th%t the"e $e"e on'4 6 se%ts %#% '%+'e %s the"e $e"e %'"e%&4 con! "me&

33

TRANSPORTATION AND PUBLIC UTILITY LAW


0%ssenge"s !o" M%n '%; %n&, th%t the +%s s !o" 0" o" t4 $ou'& +e the chec5) n se9uence %t Ce+u) M%0%tos chose to "etu"n to Ce+u +ut $%s not %ccommo&%te& +ec%use he chec5e&) n %s 0%ssenge" No- E on 6' ght 4<<- 7e ns ste& on +e ng g #en 0" o" t4 o#e" the con! "me& 0%ssenge"s n the %ccommo&%t on, +ut the St%t on Agent "e!use& 0" #%te "es0on&ent:s &em%n& e;0'% n ng th%t the '%tte":s 0"e& c%ment $%s not &ue to PA1:s o$n &o ng +ut to % !o"ce m%?eu"e- M%0%tos t" e& to sto0 the &e0%"tu"e o! 6' ght (60 %s h s 0e"son%' +e'ong ngs, nc'u& ng % 0%c5%ge cont% n ng % c%me"% $h ch % ce"t% n M $% !"om D%0%n %s5e& h m to &e' #e" to M"s- 6e O+ & o! * ngoog C t4, $e"e st '' on +o%"&- 7 s 0'e% !e'' on &e%! e%"s- PA1 then ssue& to h m % !"ee t c5et to I' g%n C t4, $h ch the '%tte" "ece #e& un&e" 0"otest- P" #%te "es0on&ent $%s 'e!t %t the % "0o"t %n& cou'& not e#en h tch % " &e n the 6o"& 6 e"% 'o%&e& $ th PA1 0e"sonne'- PA1 ne the" 0"o# &e& 0" #%te "es0on&ent $ th t"%ns0o"t%t on !"om the % "0o"t to the c t4 0"o0e" no" !oo& %n& %ccommo&%t on !o" h s st%4 n Cot%+%to C t4) The !o''o$ ng &%4, he 0u"ch%se& % PA1 t c5et to I' g%n C t4- 7e n!o"me& PA1 0e"sonne' th%t he $ou'& not use the !"ee t c5et +ec%use he $%s ! ' ng % c%se %g% nst PA1- In I' g%n C t4, 0" #%te "es0on&ent h "e& % c%" !"om the % "0o"t to Po'%m+ug%n, 1%n%o &e' No"te, "e%ch ng O.%m . C t4 +4 c"oss ng the +%4 n % '%unch- 7 s 0e"son%' e!!ects nc'u& ng the c%me"%, $h ch $e"e #%'ue& %t P2,000-00, $e"e no 'onge" "eco#e"e&) The RTC %n& the CA "u'e& n !%#o" o! M%0%tosISSUE 3ON PA1 s ' %+'e !o" the &%m%ges su!!e"e& +4 M%0%tos HELD ES ) PA1 %sse"ts th%t t shou'& not +e ch%"ge& $ th the t%s5 o! 'oo5 ng %!te" the 0%ssenge"s: com!o"t %n& con#en ence +ec%use the & #e"s on o! the !' ght $%s &ue to % !o"tu tous e#ent, %n& th%t ! m%&e ' %+'e, %n %&&e& +u"&en s g #en to PA1 $h ch s o#e" %n& +e4on& ts &ut es un&e" the cont"%ct o! c%"" %ge- It su+m ts th%t g"%nt ng %"guen&o th%t neg' gence e; sts, PA1 c%nnot +e ' %+'e n &%m%ges n the %+sence o! !"%u& o" +%& !% th; th%t 0" #%te "es0on&ent !% 'e& to %00" se PA1 o! the n%tu"e o! h s t" 0 %n& 0oss +'e +us ness 'osses; %n&, th%t 0" #%te "es0on&ent h mse'! s to +e +'%me& !o" un"e%son%+'4 "e!us ng to use the !"ee t c5et $h ch PA1 ssue&) The contract of air carriage is a .eculiar one1 Being imbued with .ublic interest, the law re,uires common carriers to carry the .assengers safely as far as human care and foresight can .rovide, using the utmost diligence of very cautious .ersons, with due regard for all the circumstances1 2A cont"%ct to t"%ns0o"t 0%ssenge"s s 9u te & !!e"ent n 5 n& %n& &eg"ee !"om %n4 othe" cont"%ctu%' "e'%t on- An& th s, +ec%use o! the "e'%t on $h ch %n % " c%"" e" sust% ns $ th the 0u+' c- Its +us ness s m% n'4 $ th the t"%#e'' ng 0u+' c- It n# tes 0eo0'e to %#% ' o! the com!o"ts %n& %&#%nt%ges t o!!e"s- The cont"%ct o! % " c%"" %ge, the"e!o"e, gene"%tes % "e'%t on %tten&e& $ th % 0u+' c &ut4 - - -2 ) T%e position ta&en )y PA' in t%is "ase "learly illustrates its ,ailure to grasp t%e e-a"ting standard re.uired )y la/. 0ndisputa)ly+ PA'1s di$ersion o, its ,lig%t due to in"lement

-A2010-

PROF. RODRIGO LOPE QUIMBO


in7uries /%i"% "aused %er deat% later- The 0%ssenge" %ss% '%nt %' ghte& !"om the +us %n& "%n to$%"& the +ushes +ut $%s 5 ''e& +4 the 0o' ce) 7e "s o! ,ete" %n& R%ut"%ut, 0" #%te "es0on&ents he"e n (R c%"&o ,ete" %n& Se"g % ,ete" %"e the 0%"ents o! O"nom n o $h 'e Teo! 'o R%ut"%ut %n& Moete"% R%ut"%ut %"e the 0%"ents o! N%"c s%) f(/e- a .omp/a(+* for A)4m of mo+e1A aga(+)* !a.0e/or E;pre)), I+.. (*) a//ege- o2+er Sam)o+ a)a1 a+- *0e -r('er R('era) Pet t one"s &en e& ' %+ ' t4 !o" the &e%th %n& %''ege& th%tH (1) the -r('er 2a) a3/e *o *ra+)por* 0() pa))e+ger) )afe/1 *o *0e(r re)pe.*('e p/a.e) of -e)*(+a*(o+ e/ce.t Ornominio Beter and arcisa >autraut who 3um.ed off the bus without the 2nowledge and consent , much less, the fault of the driver and conductor; (2) the &e!en&%nt co"0o"%t on h%& e;er.()e- -4e -(/(ge+.e (+ *0e .0o(.e of (*) emp/o1ee) *o a'o(- a) m4.0 a) po))(3/e a..(-e+*) ; (/) the nc &ent $%s not a traffic accident or vehicular accident , t $%s %n nc &ent o" e#ent 'er1 m4.0 3e1o+- *0e .o+*ro/ of *0e -efe+-a+*); (4) &e!en&%nts $e"e not 0%"t es to the nc &ent com0'% ne& o! %s t $%s %n %ct o! % th "& 0%"t4 $ho s +o* (+ a+1 2a1 .o++e.*e- 2(*0 *0e -efe+-a+*) a+- of 20(.0 *0e /a**er 0a'e +o .o+*ro/ a+)4per'()(o+) RTC & sm sse& the com0'% nt- CA "e#e"se& RTC &ec s on) 7ence, th s 0et t on- As "eg%"&s the 0"o; m%te c%use o! the &e%th o! O"nom n o ,ete" %n& N%"c s% R%ut"%ut, the 0et t one"s m% nt% n th%t t $%s the a"t o, t%e passenger /%o ran amu"& and sta))ed anot%er passenger o, t%e )us- The4 conten& th%t the st%++ ng nc &ent t" gge"e& o!! the commot on %n& 0%n c %mong the 0%ssenge"s $ho 0ushe& one %nothe" %n& th%t .resumably out o! !e%" %n& mo#e& +4 th%t hum%n nst nct o! se'!)0"ese"#%t on ,ete" %n& R%ut"%ut ?um0e& o!! the +us $h 'e the +us $%s st '' "unn ng "esu't ng n the " unt me'4 &e%thISSUE 1- 3ON the %cc &ent $%s c%use& +4 !o"ce m%?eu"e 2- 3ON the 0et t one":s common c%"" e" o+se"#e& e;t"%o"& n%"4 & ' gence to s%!egu%"& the ' #es o! ts 0%ssenge"s HELD 1- 8ES Ratio A c%so !o"tu to 0"esents the !o''o$ ng essent %' ch%"%cte" st csH (1) The c%use o! the un!o"eseen %n& une;0ecte& occu""ence, o" o! the !% 'u"e o! the &e+to" to com0'4 $ th h s o+' g%t on, must +e n&e0en&ent o! the hum%n $ ''(2) It must +e m0oss +'e to !o"esee the e#ent $h ch const tutes the c%so !o"tu to, o" ! t c%n +e !o"eseen, t must +e m0oss +'e to %#o &(/) The occu""ence must +e such %s to "en&e" t m0oss +'e !o" the &e+to" to !u'! '' h s o+' g%t on n % no"m%' m%nne"(4) the o+' go" (&e+to") must +e !"ee !"om %n4 0%"t c 0%t on n the %gg"%#%t on o! the n?u"4 "esu't ng to the c"e& to"- (;nciclo.edia Guridica ;s.anola) Reasoning HE'e+*)A 20(.0 .a++o* 3e fore)ee+ a+- 20(.0, 0a'(+g 3ee+ fore)ee+, are (+e'(*a3/e (1%s%m # Sm th)H The S0%n sh %utho" t es "eg%"& the '%ngu%ge em0'o4e& %s %n effor* *o -ef(+e *0e *erm <.a)o for*4(*o< %n& ho'& th%t the t$o e;0"ess ons %"e s4non4mous- Esc" che &e! nes c%so !o"tu to %s %n 4+e;pe.*e- e'e+* or

/eat%er /as a ,ortuitous e$ent. 2onet%eless+ su"% o""urren"e did not terminate PA'1s "ontra"t /it% its passengers. 3eing in t%e )usiness o, air "arriage and t%e sole one to operate in t%e "ountry+ PA' is deemed e.uipped to deal /it% situations as in t%e "ase at )ar. 4%at /e said in one "ase on"e again must )e stressed+ i.e.+ t%e relation o, "arrier and passenger "ontinues until t%e latter %as )een landed at t%e port o, destination and %as le,t t%e "arrier1s premises. 5en"e+ PA' ne"essarily /ould still %a$e to e-er"ise e-traordinary diligen"e in sa,eguarding t%e "om,ort+ "on$enien"e and sa,ety o, its stranded passengers until t%ey %a$e rea"%ed t%eir ,inal destination. On th s sco"e, PA1 g"oss'4 !% 'e& cons &e" ng the then ongo ng +%tt'e +et$een go#e"nment !o"ces %n& Mus' m "e+e's n Cot%+%to C t4 %n& the !%ct th%t the 0" #%te "es0on&ent $%s % st"%nge" to the 0'%ce) 3h 'e $e ! n& PA1 "em ss n ts &ut4 o! e;ten& ng utmost c%"e to 0" #%te "es0on&ent $h 'e +e ng st"%n&e& n Cot%+%to C t4, the"e s no su!! c ent +%s s to conc'u&e th%t PA1 !% 'e& to n!o"m h m %+out h s non) %ccommo&%t on on 6' ght (60, o" th%t t $%s n%ttent #e to h s 9ue" es "e'%t #e the"eto-I! n&ee& PA1 om tte& to g #e n!o"m%t on %+out the o0t ons %#% '%+'e to ts & #e"te& 0%ssenge"s, t $ou'& h%#e +een &e'uge& $ th com0'% nts- ,ut, on'4 0" #%te "es0on&ent com0'% ne&) A&m tte&'4, 0" #%te "es0on&ent:s ns stence on +e ng g #en 0" o" t4 n %ccommo&%t on $%s un"e%son%+'e cons &e" ng the !o"tu tous e#ent %n& th%t the"e $%s % se9uence to +e o+se"#e& n the +oo5 ng, -e-, n the o"&e" the 0%ssenge"s chec5e&) n %t the " 0o"t o! o" g n- 7 s nt"%ns gence n !%ct $%s the m% n c%use !o" h s h%# ng to st%4 %t the % "0o"t 'onge" th%n $%s necess%"4-

4. for.e ma>e4re !ACHELOR EGPRESS INC V CA ,!ETER" *-R- No- A(6E1 *CTIERREM, DR; Du'4 /1, 1EE0 ("%ch)
NATURE Pet t on !o" "e# e$ o! CA &ec s on $h ch "e#e"se& %n& set %s &e RTC o"&e" & sm ss ng the 0" #%te "es0on&ents: com0'% nt !o" co''ect on o! 2% sum o! mone42 %n& ! n& ng the 0et t one"s so' &%" '4 ' %+'e !o" &%m%ges FACTS ) ,us No- A00 o$ne& +4 ,%che'o" E;0"ess, Inc- %n& &" #en +4 C"esenc o R #e"% $%s the s tus o! % st%m0e&e $h ch "esu'te& n the &e%th o! 0%ssenge"s O"nom n o ,ete" %n& N%"c s% R%ut"%ut) E# &ence sho$e&H ,us c%me !"om G%#%o C t4 on ts $%4 to C%g%4%n &e O"o C t4 0%ss ng ,utu%n C t4; th%t $h 'e %t T%+on)T%+on, ,utu%n C t4, the +us 0 c5e& u0 % 0%ssenge"; th%t %+out ! !teen (1() m nutes '%te", % 0%ssenge" %t the "e%" 0o"t on su&&en'4 st%++e& % PC so'& e" $h ch c%use& commot on %n& 0%n c %mong the 0%ssenge"s; th%t when the bus sto..ed, passengers 6rnominio 3eter and 2ar"isa Rautraut /ere ,ound lying do/n t%e road+ t%e ,ormer already dead as a result o, %ead in7uries and t%e latter also su,,ering ,rom se$ere

34

TRANSPORTATION AND PUBLIC UTILITY LAW


a.* of Go- 20(.0 .o4/- +e(*0er 3e fore)ee+ +or re)()*e- , such %s !'oo&s, to""ents, sh 0$"ec5s, con!'%g"%t ons, ' ghtn ng, com0u's on, nsu""ect ons, &est"uct on o! +u '& ngs +4 un!o"eseen %cc &ents %n& othe" occu""ences o! % s m '%" n%tu"e) As $ '' +e seen, these %utho" t es %g"ee th%t some e;t"%o"& n%"4 c "cumst%nce n&e0en&ent o! the $ '' o! the o+' go" o" o! h s em0'o4ees, s %n essent %' e'ement o! % c%so !o"tu toT The running amuc2 of the .assenger was the .ro/imate cause of the incident as it triggered off a commotion and .anic among the .assengers such that the .assengers started running to the sole e/it shoving each other resulting in the falling off the bus by .assengers Beter and >autraut causing them fatal in3uries- T0e )4--e+ a.* of *0e pa))e+ger 20o )*a33e- a+o*0er pa))e+ger (+ *0e 34) () 2(*0(+ *0e .o+*e;* of ,or"e ma7eure1 2- NO Ratio In o"&e" th%t % common c%"" e" m%4 +e %+so'#e& !"om ' %+ ' t4 n c%se o! force ma3eure, t s +o* e+o4g0 *0a* *0e a..(-e+* 2a) .a4)e31 ,or"e ma7eure- The common c%"" e" must st '' pro'e *0a* (* 2a) +o* +eg/(ge+* (+ .a4)(+g *0e (+>4r(e) re)4/*(+g from )4.0 a..(-e+*@ 6"om the n%tu"e o! ts +us ness %n& !o" "e%sons o! 0u+' c 0o' c4 ,%che'o" E;0"ess, Inc- s 3o4+- *o .arr1 (*) pa))e+ger) )afe/1 a) far a) 04ma+ .are a+- fore)(g0* .a+ pro'(-e 4)(+g *0e 4*mo)* -(/(ge+.e of 'er1 .a4*(o4) per)o+), with a due regard for all the circumstances - 3h 'e 0%ssenge"s o! the +us, the t$o su!!e"e& n?u" es $h ch c%use& the " &e%th- Conse9uent'4, 0u"su%nt to A"t c'e 1<(6 o! the C # ' Co&e, 0et t one" ,%che'o" E;0"ess, Inc- is presumed *o 0a'e a.*e- +eg/(ge+*/1 4+/e)) (* .a+ pro'e *0a* (* 0a- o3)er'ee;*raor-(+ar1 -(/(ge+.e n %cco"&%nce $ th A"t- 1<// %n& 1<(( o! the Ne$ C # ' Co&eReasoning C "cumst%nces sho$ th%t the 0et t one" common c%"" e" $%s neg' gent n the 0"o# s on o! s%!et4 0"ec%ut ons so th%t ts 0%ssenge"s m%4 +e t"%ns0o"te& s%!e'4 to the " &est n%t ons- 6%ctu%' ! n& ngs o! the Cou"t o! A00e%'s ) U the +us &" #e" & & not mme& %te'4 sto0 the +us %t the he ght o! the commot on; U the +us $%s s0ee& ng !"om % !u'' sto0; U the # ct ms !e'' !"om the +us &oo" $hen t $%s o0ene& o" g%#e $%4 $h 'e the +us $%s st '' "unn ng; U the con&ucto" 0%n c5e& %n& +'e$ h s $h st'e %!te" 0eo0'e h%& %'"e%&4 !%''en o!! the +us; U the +us $%s not 0"o0e"'4 e9u 00e& $ th &oo"s n %cco"&%nce $ th '%$The"e s no "e%son to +e' e#e th%t the &ece%se& 0%ssenge"s ?um0e& !"om the $ n&o$ 20e+ (* 2a) e+*(re/1 po))(3/e for *0em *o 0a'e a/(g0*e- *0ro4g0 *0e -oor- The 'o$e" cou"t:s "e' %nce on the test mon4 o! Pe&"o Co''%ngo, %s the con&ucto" %n& em0'o4ee o! the common c%"" e", s un?ust ! e&, n the ' ght o! the c'e%" test mon4 o! 1eon '% Cu''%no %s the so'e un nte"este& e4e$ tness o! the ent "e e0 so&eDisposition Pet t on s GISMISSEG6. RESPONSI!ILIT

-A2010-

PROF. RODRIGO LOPE QUIMBO


&e! n t on o! %"t c'e 110( o! the o'& C # ' Co&e, %n& 0u"su%nt to est%+' she& &oct" ne, the "esu't ng +"e%ch o! %00e''%nt:s cont"%ct o! s%!e c%"" %ge $ th the '%te Tom%s * ''%co $%s e;cuse& the"e+4)The 'o$e" Cou"t %n& the %00e''ees +oth "e' e& on the Ame" c%n %utho" t es th%t 0%"t cu'%"'4 ho'& c%"" e"s to +e nsu"e"s o! the s%!et4 o! the " 0%ssenge"s %g% nst $ ''!u' %ss%u't %n& ntent on%' '' t"e%tment on the 0%"t o! the " se"#%nts, t +e ng mm%te" %' th%t the %ct shou'& +e one o! 0" #%te "et" +ut on on the 0%"t o! the se"#%nt, m0e''e& +4 0e"son%' m%' ce to$%"& the 0%ssenge" ),ut %s c%n +e n!e""e& !"om the 0"e# ous ?u" s0"u&ence o! th s Cou"t , the C # ' Co&e o! 1AAE & & not m0ose such %+so'ute ' %+ ' t4 )Anothe" #e"4 m0o"t%nt cons &e"%t on th%t must +e +o"ne n m n& s th%t, $hen the c" me too5 0'%ce, Ge#es% $%s un&e" no o+' g%t on to s%!egu%"& the 0%ssenge"s o! the C%'%m+%)M%n '% t"% n, $he"e the &ece%se& $%s " & ng; %n& the 5 '' ng o! * ''%co $%s not &one n ' ne o! &ut4)The 0os t on o! Ge#es% %t the t me $%s th%t o! %nothe" $ou'& +e 0%ssenge", % st"%nge" %'so %$% t ng t"%ns0o"t%t on, %n& not th%t o! %n em0'o4ee %ss gne& to & sch%"ge %n4 o! the &ut es th%t the R% '"o%& h%& %ssume& +4 ts cont"%ct $ th the &ece%se&- As % "esu't, Ge#es%:s %ss%u't c%nnot +e &eeme& n '%$ % +"e%ch o! * ''%co:s cont"%ct o! t"%ns0o"t%t on +4 % se"#%nt o" em0'o4ee o! the c%"" e"Disposition Du&gment %00e%'e& !"om "e#e"se&-

DE GILLACO V #RR E< P7I1 AA4 RE8ES; No#em+e" 1A, 1E(( (%00'e)
NATURE A00e%' !"om % ?u&gment o! the C6I o! 1%gun% FACTS )On A0" ' 1, 1E46, %+out <H/0 %m, 1 eut- Tom%s * ''%co, "o&e the e%"'4 mo"n ng t"% n o! the M%n '% R% '"o%& Com0%n4 (MRR) !"om C%'%m+%, 1%gun% to M%n '% )C0on "e%ch ng P%co st%t on, Em ' o Ge#es%, % t"% n gu%"& o! the M%n '% R% '"o%& Com0%n4 %ss gne& n the M%n '%)S%n 6e"n%n&o, 1% Cn on 1 ne, "o&e the s%me t"% n $h ch $ou'& t%5e h m to Tutu+%n St%t on, $he"e he $%s go ng to "e0o"t !o" &ut4 )Em ' o Ge#es% h%& % 'ong st%n& ng 0e"son%' g"u&ge %g% nst Tom%s * ''%co, &%t ng +%c5 &u" ng the D%0%nese occu0%t on, %n& +ec%use o! th s 0e"son%' g"u&ge, Ge#es% shot * ''%co u0on see ng h m ns &e the t"% n, $ th the c%"+ ne !u"n she& to h m +4 the M%n '% R% '"o%& Com0%n4 )Tom%s * ''%co & e& %s % "esu't )Ge#es% $%s con# cte& $ th hom c &e +4 ! n%' ?u&gment o! the CA )C6I o! 1%gun% sentence& MRR to 0%4 P4,000 &%m%ges to the %00e''ees, the $ &o$ %n& ch '&"en o! Tom%s * ''%co ISSUE 3ON MRR s ' %+'e to %00e''ees !o" the %ct o! Ge#es% HELD No)The"e c%n +e no 9u%""e' $ th the 0" nc 0'e th%t % 0%ssenge" s ent t'e& to 0"otect on !"om 0e"son%' # o'ence +4 the c%"" e" o" ts %gents o" em0'o4ees, s nce the cont"%ct o! t"%ns0o"t%t on o+' g%tes the c%"" e" to t"%ns0o"t % 0%ssenge" s%!e'4 to h s &est n%t on),ut un&e" the '%$ o! the c%se, th s "es0ons + ' t4 e;ten&s on'4 to those th%t the c%"" e" cou'& !o"esee o" %#o & th"ough the e;e"c se o! the &eg"ee o! c%"e %n& & ' gence "e9u "e& o! t)The %ct o! gu%"& Ge#es% n shoot ng 0%ssenge" * ''%co $%s ent "e'4 un!o"esee%+'e +4 the M%n '% R% '"o%& Co- The '%tte" h%& no me%ns to %sce"t% n o" %nt c 0%te th%t the t$o $ou'& meet, no" cou'& t "e%son%+'4 !o"esee e#e"4 0e"son%' "%nco" th%t m ght e; st +et$een e%ch one o! ts m%n4 em0'o4ees %n& %n4 one o! the thous%n&s o! e#entu%' 0%ssenge"s " & ng n ts t"% ns)The shoot ng n 9uest on $%s the"e!o"e 9caso fortuito9 $ th n the

#ARANAN VS. PEREZ 20 SCRA 412; *-R- No- 1)222<2 Dune 26, 1E6< (Ch" s 1%o)
FACTS )Roge' o Co"%che%, on Octo+e" 1A, 1E60, $%s % 0%ssenge" n % t%; c%+ o$ne& %n& o0e"%te& +4 P%scu%' Pe"e. $hen he $%s st%++e& %n& 5 ''e& +4 the &" #e", S meon B%'en.ue'%)B%'en.ue'% $%s 0"osecute& !o" hom c &e n the Cou"t o! 6 "st Inst%nce o! ,%t%ng%s- 7e $%s !oun& gu 't4)On Gecem+e" 6, 1E61, $h 'e %00e%' $%s 0en& ng n the CA, Anton % M%"%n%n, Roge' o:s mothe", ! 'e& %n %ct on n the C6I o! ,%t%ng%s to "eco#e" &%m%ges !"om Pe"e. %n& B%'en.ue'% !o" the &e%th o! he" son)C6I "u'e& n !%#o" o! M%"%n%n- CA %!! "me&ISSUE 3ON o$ne" Pe"e. s ' %+'e !o" %cts o! h s em0'o4ee $ho 5 ''e& Anton %=s son RULING ES. No$ he"e, the 5 '' ng $%s 0e"0et"%te& +4 the &" #e" o! the #e"4 c%+ t"%ns0o"t ng the 0%ssenge", n $hose h%n&s the c%"" e" h%& ent"uste& the &ut4 o! e;ecut ng the cont"%ct o! c%"" %ge- In othe" $o"&s, un' 5e the * ''%co c%se ("e' e& on +4 Pe"e.), the 5 '' ng o! the 0%ssenge" he"e too5 0'%ce n the cou"se o! &ut4 o! the gu 't4 em0'o4ee %n& $hen the em0'o4ee $%s %ct ng $ th n the sco0e o! h s &ut es- Mo"eo#e", the * ''%co c%se $%s &ec &e& un&e" the 0"o# s ons o! the C # ' Co&e o! 1AAE $h ch, un' 5e the 0"esent C # ' Co&e, & & not m0ose u0on common

FOR ACTS OF E#PLO EES

!ATACLAN VS #EDINA ,SUPRA"

35

TRANSPORTATION AND PUBLIC UTILITY LAW


c%"" e"s %+so'ute ' %+ ' t4 !o" the s%!et4 o! 0%ssenge"s %g% nst $ '!u' %ss%u'ts o" neg' gent %cts comm tte& +4 the " em0'o4ees)The C # ' Co&e 0"o# s ons on the su+?ect o! Common C%"" e"s %"e ne$ %n& $e"e t%5en !"om Ang'o)Ame" c%n 1%$- The"e, the +%s s o! the c%"" e":s ' %+ ' t4 !o" %ss%u'ts on 0%ssenge"s comm tte& +4 ts &" #e"s "ests e the" on (1) the &oct" ne o! "es0on&ent su0e" o" o" (2) the 0" nc 0'e th%t t s the c%"" e":s m0' e& &ut4 to t"%ns0o"t the 0%ssenge" s%!e'4)Cn&e" the ! "st, $h ch s the m no" t4 # e$, the c%"" e" s ' %+'e on'4 $hen the %ct o! the em0'o4ee s $ th n the sco0e o! h s %utho" t4 %n& &ut4- It s not su!! c ent th%t the %ct +e $ th n the cou"se o! em0'o4ment on'4Cn&e" the secon& # e$, u0he'& +4 the m%?o" t4 %n& %'so +4 the '%te" c%ses, t s enough th%t the %ss%u't h%00ens $ th n the cou"se o! the em0'o4ee:s &ut4- It s no &e!ense !o" the c%"" e" th%t the %ct $%s &one n e;cess o! %utho" t4 o" n & so+e& ence o! the c%"" e":s o"&e"s- The c%"" e":s ' %+ ' t4 he"e s %+so'ute n the sense th%t t 0"%ct c%''4 secu"es the 0%ssenge"s !"om %ss%u'ts comm tte& +4 ts o$n em0'o4ees)A) .a+ 3e g/ea+e- from Ar*. :F9E, *0e C('(/ Co-e of *0e P0(/(pp(+e) e'(-e+*/1 fo//o2) *0e r4/e 3a)e- o+ *0e )e.o+- '(e2. At 'e%st th"ee #e"4 cogent "e%sons un&e"' e th s "u'e- As e;0'% ne& n Te;%s M &'%n& R-R- #s- Mon"oe %n& 7%#e" #s- Cent"%' R% '"o%& Co; (1) the s.ecial underta2ing of the carrier re,uires that it furnish its .assenger that full measure of .rotection afforded by the e/ercise of the high degree of care .rescribed by the law, inter alia from violence and insults at the hands of strangers and other .assengers, but above all, from the acts of the carrier's own servants charged with the .assenger's safety5 ($) said liability of the carrier for the servant's violation of duty to .assengers, is the result of the former's confiding in the servant's hands the .erformance of his contract to safely trans.ort the .assenger, delegating therewith the duty of .rotecting the .assenger with the utmost care .rescribed by law5 and (6) as between the carrier and the .assenger, the former must bear the ris2 of wrongful acts or negligence of the carrier's em.loyees against .assengers, since it, and not the .assengers, has .ower to select and remove them1 Acco"& ng'4, t s the c%"" e":s st" ct o+' g%t on to se'ect ts &" #e"s %n& s m '%" em0'o4ees $ th &ue "eg%"& not on'4 to the " techn c%' com0etence %n& 0h4s c%' %+ ' t4, +ut %'so, no 'ess m0o"t%nt, to the " tot%' 0e"son%' t4, nc'u& ng the " 0%tte"ns o! +eh%# o", mo"%' ! +e"s, %n& soc %' %tt tu&e)A00'4 ng th s st" ngent no"m to the !%cts n th s c%se, the"e!o"e, the 'o$e" cou"t " ght'4 %&?u&ge& the &e!en&%nt c%"" e" ' %+'e 0u"su%nt to A"t1<(E o! the C # ' Co&e- The & sm ss%' o! the c'% m %g% nst the &e!en&%nt &" #e" $%s %'so co""ect- P'% nt !!:s %ct on $%s 0"e& c%te& on +"e%ch o! cont"%ct o! c%"" %ge %n& the c%+ &" #e" $%s not % 0%"t4 the"eto- 7 s c # ' ' %+ ' t4 s co#e"e& n the c" m n%' c%se $he"e n he $%s con# cte& +4 ! n%' ?u&gment-

-A2010-

PROF. RODRIGO LOPE QUIMBO


T0e fo4+-a*(o+ of LRTA<) /(a3(/(*1 () *0e .o+*ra.* of .arr(age %n& ts o+' g%t on to n&emn !4 the # ct m %" ses !"om the +"e%ch o! th%t cont"%ct +4 "e%son o! ts !% 'u"e to e;e"c se the h gh & ' gence "e9u "e& o! the common c%"" e"- In the & sch%"ge o! ts comm tment to ensu"e the s%!et4 o! 0%ssenge"s, % c%"" e" m%4 choose to h "e ts o$n em0'o4ees o" %#% ' tse'! o! the se"# ces o! %n outs &e" o" %n n&e0en&ent ! "m to un&e"t%5e the t%s5- (n either case, the common carrier is not relieved of its res.onsibilities under the contract of carriage1 ;scartin and *rudent Security are OT liable The $ &o$ %n& he "s o! N%# &%& !% 'e& to 0"o#e the neg' gence o! Esc%"t n, P"u&ent=s em0'o4ee, thus, P"u&ent c%nnot +e ' n5e& to the n?u"4 (em0'o4e" ' %+ ' t4 un&e" 21A0)>oman OT liable It $%s %'so not sho$n Rom%n h mse'! s gu 't4 o! %n4 cu'0%+'e %ct o" om ss on- The cont"%ctu%' t e +et$een the 1RT %n& N%# &%& s not tse'! % ?u" & c%' "e'%t on +et$een the N%# &%& %n& Rom%n; thus, Rom%n c%n +e m%&e ' %+'e on'4 !o" h s o$n !%u't o" neg' gence<- RESPONSI,1IIT8 6OR ACTS O6 STRAN*ERS ANG CO) PASSEN*ERS

On 14 Octo+e" 1EE/, %t %"oun& </00m, N c%no" N%# &%&, then &"un5, ente"e& the EGSA 1RT st%t on %!te" 0u"ch%s ng % to5en- 3h 'e N%# &%& $%s st%n& ng on the 0'%t!o"m ne%" the 1RT t"%c5s, Dune' to Esc%"t n, the secu" t4 gu%"& %ss gne& to the %"e% %00"o%che& N%# &%&A m sun&e"st%n& ng o" %n %'te"c%t on +et$een the t$o %00%"ent'4 ensue& th%t 'e& to % ! st ! ght- No e# &ence, ho$e#e", $%s %&&uce& to n& c%te ho$ the ! ght st%"te& o" $ho, +et$een the t$o, &e' #e"e& the ! "st +'o$ o" ho$ N%# &%& '%te" !e'' on the 1RT t"%c5s- At the e;%ct moment th%t N%# &%& !e'', %n 1RT t"% n, o0e"%te& +4 0et t one" Ro&o'!o Rom%n, $%s com ng n- N%# &%& $%s st"uc5 +4 the mo# ng t"% n, %n& he $%s 5 ''e& nst%nt%neous'4N%# &%&=s $ &o$ %n& ch '&"en ! 'e& % com0'% nt !o" &%m%ges %g% nst Esc%"t n, Rom%n, 1RTA, Met"o T"%ns t, %n& P"u&ent Secu" t4- The RTC o"&e"e& P"u&ent %n& Esc%"t n to 0%4 &%m%gesEsc%"t n J P"u&ent %00e%'e& to the CA- CA e;one"%te& them %n& nste%& o"&e"e& Rom%n J 1RTA to 0%4 &%m%ges, on the g"oun& th%t $h 'e the &ece%se& m ght not h%#e then %s 4et +o%"&e& the t"% n, % cont"%ct o! c%"" %ge the"eto!o"e h%& %'"e%&4 e; ste& $hen the # ct m ente"e& the 0'%ce $he"e 0%ssenge"s $e"e su00ose& to +e %!te" 0%4 ng the !%"e %n& gett ng the co""es0on& ng to5en the"e!o"- In e;em0t ng P"u&ent !"om ' %+ ' t4, the CA st"esse& th%t the"e $%s noth ng to ' n5 the secu" t4 %genc4 to the &e%th o! N%# &%&- It s% & th%t N%# &%& !% 'e& to sho$ th%t Esc%"t n n!' cte& ! st +'o$s u0on the # ct m %n& the e# &ence me"e'4 est%+' she& the !%ct o! &e%th o! N%# &%& +4 "e%son o! h s h%# ng +een h t +4 the t"% n o$ne& %n& m%n%ge& +4 the 1RTA %n& o0e"%te& %t the t me +4 Rom%n- The CA !%u'te& 0et t one"s !o" the " !% 'u"e to 0"esent e;0e"t e# &ence to est%+' sh the !%ct th%t the %00' c%t on o! eme"genc4 +"%5es cou'& not h%#e sto00e& the t"% nISSUE 3ho sF%"e ' %+'eV RULING :>TA is liable The '%$ "e9u "es .ommo+ .arr(er) to c%""4 0%ssenge"s s%!e'4 us ng the 4*mo)* -(/(ge+.e of 'er1 .a4*(o4) per)o+) $ th &ue "eg%"& !o" %'' c "cumst%nces- Such &ut4 o! % common c%"" e" to 0"o# &e s%!et4 to ts 0%ssenge"s so o+' g%tes t not on'4 &u" ng the cou"se o! the t" 0 +ut !o" so 'ong %s the 0%ssenge"s %"e $ th n ts 0"em ses %n& $he"e the4 ought to +e n 0u"su%nce to the cont"%ct o! c%"" %ge- The st%tuto"4 0"o# s ons "en&e" % common c%"" e" ' %+'e !o" &e%th o! o" n?u"4 to 0%ssenge"s a) through the negligence or wilful acts of its em.loyees or b) on account of wilful acts or negligence of other .assengers or of strangers if the common carrier's em.loyees through the e/ercise of due diligence could have .revented or sto..ed the act or omission1 In c%se o! such &e%th o" n?u"4, % c%"" e" s 0"esume& to h%#e +een %t !%u't o" +een neg' gent, %n& the 0%ssenge" h%s on'4 to 0"o#e n?u"4 %n& the +u"&en sh !ts to the c%"" e" to 0"o#e th%t the n?u"4 s &ue to %n un!o"eseen e#ent o" to !o"ce m%?eu"e- In the %+sence o! s%t s!%cto"4 e;0'%n%t on +4 the c%"" e" on ho$ the %cc &ent occu""e&, the 0"esum0t on $ou'& +e th%t t h%s +een %t !%u't, %n e;ce0t on !"om the gene"%' "u'e th%t neg' gence must +e 0"o#e&- 1RTA !% 'e& to sho$ ho$ the %cc &ent occu""e&-

PILAPIL V CA ,ALATCO TRANSPORTATION CO#PAN , INC." PAGI11A; GECEM,ER 22, 1EAE (?%?%)
FACTS Pet t one" P '%0 ', % 0%4 ng 0%ssenge", +o%"&e& 0" #%te "es0on&ent=s +us- 3h 'e the +us $%s on ts $%4 to N%g% C t4, %n un &ent ! e& +4st%n&e" %'ong the h gh$%4 hu"&'e& % stone %t the 'e!t s &e o! the +us $h ch h t the 0et t one" %+o#e h s 'e!t e4e- P" #%te "es0on&ent=s 0e"sonne' 'ost no t me n +" ng ng the 0et t one" to the hos0 t%'Pet t one" 'ost 0%"t %''4 h s 'e!t e4e=s # s on %n& sust% ne& % 0e"m%nent sc%" %+o#e the 'e!t e4e- An %ct on !o" "eco#e"4 o! &%m%ges sust% ne& %s % "esu't o! the stone)th"o$ ng nc &ent $%s nst tute& +4 the 0et t one" %g% nst 0" #%te "es0on&ent- The t" %' cou"t o"&e"e& the '%tte" to 0%4 &%m%ges to 0et t one"- On %00e%', the Cou"t o! A00e%'s "e#e"se& the &ec s on- Pet t one" see5s the "e#e"s%' o! the %00e''%te cou"t=s &ec s on %"gu ng th%t the n%tu"e o! the +us ness o! % t"%ns0o"t%t on com0%n4 "e9u "es the %ssum0t on o! ce"t% n " s5s, %n& the ston ng nc &ent "esu't ng n n?u"4 to 0et t one" s one such " s5s !"om $h ch the common c%"" e" $%4 not e;em0t tse'! !"om ' %+ ' t4ISSUE 3ON the +us com0%n4 m%4 +e he'& ' %+'e n the ston ng nc &ent $h ch "esu'te& n n?u"4 HELD NO- The +us com0%n4 shou'& +e %+so'#e& !"om ' %+ ' t4 !o" &%m%ges- 3h 'e the '%$ "e9u "es the h ghest &eg"ee o! & ' gence !o"m common c%"" e"s n the s%!e t"%ns0o"t o! the " 0%ssenge"s %n& c"e%tes %

LRTA '. NAVIDAD /E< SCRA <( 6e+"u%"4 6, 200/; B tug (In%)
FACTS

36

TRANSPORTATION AND PUBLIC UTILITY LAW


0"esum0t on o! neg' gence %g% nst them, t &oes not, ho$e#e", m%5e the c%"" e" %n nsu"e" o! the %+so'ute s%!et4 o! ts 0%ssenge"sIn the nst%nt c%se, the n?u"4 sust% ne& +4 the 0et t one" $%s n no $%4 &ue to %n4 &e!ect n the me%ns o! the t"%ns0o"t o" n the metho& o! t"%ns0o"t ng o" to the neg' gent o" $ ''!u' %cts o! 0" #%te "es0on&ent=s em0'o4ees %n& the"e!o"e n#o'# ng no ssue o! neg' gence n h s &ut4 to 0"o# &e s%!e %n& su t%+'e c%"s %s $e'' %s com0etent em0'o4ees- The n?u"4 %"ose $ho''4 !o" c%uses c"e%te& +4 t$o st"%nge" o#e" $h ch the c%"" e" h%& no cont"o' o" e#en 5no$'e&ge o" cou'& not h%#e 0"e#ente&7ence, the 0"esum0t on s "e+utte&W3h 'e %s % gene"%' "u'e, common c%"" e"s %"e +oun& to e;e"c se e;t"%o"& n%"4 & ' gence n the s%!e t"%ns0o"t o! the " 0%ssenge"s, t $ou'& seem th%t th s s not the st%n&%"& +4 $h ch ts ' %+ ' t4 s to +e &ete"m ne& $hen nte"#en ng %cts o! st"%nge"s s to +e &ete"m ne& & "ect'4 c%use the n?u"4, $h 'e the cont"%ct o! c%"" %ge A"t c'e 1<6/ go#e"nsH A"t c'e 1<6/- A common c%"" e" s "es0ons +'e !o" n?u" es su!!e"e& +4 % 0%ssenge" on %ccount o! the $ '!u' %cts o" neg' gence o! othe" 0%ssenge"s o" o! st"%nge"s, ! the common c%"" e":s em0'o4ees th"ough the e;e"c se o! the & ' gence o! % goo& !%the" o! % !%m '4 cou'& h%#e 0"e#ente& o" sto00e& the %ct o" om ss on6u"the", un&e" A"t- 1<6/ o! the s%me Co&e, % common c%"" e" s "es0ons +'e !o" n?u" es su!!e"e& +4 % 0%ssenge" on %ccount o! the $ ''!u' %cts o" neg' gence o! othe" 0%ssenge" o" o! st"%nge"s on'4 ! the common c%"" e"=s em0'o4ees th"ough the e;e"c se o! the & ' gence o! % goo& !%the" o! the !%m '4 cou'& h%#e 0"e#ente& o" sto00e& the %ct o" om ss on- In?u" es $h ch cou'& +e sust% ne& +4 the stone th"o$ ng nc &ents c%nnot +e 0"e#ente& not$ thst%n& ng the e;e"c se o! the & ' gence "e9u "e& o! % goo& !%the" o! the !%m '4 +4 the em0'o4ees o! the +us com0%n4- A to"t comm tte& +4 % st"%nge" $h ch c%uses n?u"4 to % 0%ssenge" &oes not %cco"& the '%tte" % c%use o! %ct on %g% nst the c%"" e"- The neg' gence !o" $h ch % common c%"" e" s he'& "es0ons +'e s the neg' gent om ss on +4 the c%"" e":s em0'o4ees to 0"e#ent the to"t !"om +e ng comm tte& $hen the s%me cou'& h%#e +een !o"eseen %n& 0"e#ente& +4 themThe "u'e o! o"& n%"4 c%"e %n& 0"u&ence s not so e;%ct ng %s to "e9u "e one ch%"ge& $ th ts e;e"c se to t%5e &ou+t!u' o" un"e%son%+'e 0"ec%ut ons to gu%"& %g% nst un'%$!u' %cts o! st"%nge"s- The c%"" e" s not ch%"ge& $ th the &ut4 o! 0"o# & ng o" m% nt% n ng #eh c'es %s to %+so'ute'4 0"e#ent %n4 %n& %'' n?u" es to 0%ssenge"s- 3he"e the c%"" e" uses c%"s o! the most %00"o#e& t40e, n gene"%' use +4 othe"s eng%ge& n the s%me occu0%t on, %n& e;e"c ses % h gh &eg"ee o! c%"e n m% nt% n ng them n su t%+'e con& t on, the c%"" e" c%nnot +e ch%"ge& $ th neg' gence n th s "es0ect

-A2010-

PROF. RODRIGO LOPE QUIMBO


)The 'o$e" cou"t he'& th%t t $%s the neg' gence o! the +us &" #e" th%t c%use& the %cc &ent %n&, %s % "esu't, "en&e"e& ?u&gment sentenc ng the 1T, to 0%4 E&g%"&o C%" %g% the sum o! P10,4E0-00 %s com0ens%to"4 &%m%ges, $ th nte"est %t the 'eg%' "%te !"om the ! ' ng o! the com0'% nt, %n& & sm ss ng the c"oss)c'% m %g% nst the M%n '% R% '"o%& Com0%n46"om th s &ec s on the C%" %g%s %n& the 1T, %00e%'e&-

D. DA#AGES RECOVERA!LE FRO# CO##ON CARRIERS 7. ACTUAL OR CO#PENSATOR EDGARDO CARIAGA, ET AL. '. LAGUNA TA A!AS !US CO#PAN ,LT!Co.", #ANILA RAILROAD CO#PAN ,#RR" *-R- No- 1)110/< F 110 Ph ' /46 GIMON; Gecem+e" 2E, 1E60 (e&e')
NATURE Ce"t o"%" FACTS ) At %+out 1H00 0-m- on Dune 1A, 1E(2, ,us No- 1// o! the 1T, &" #en +4 A'!"e&o Monc%&%, 'e!t ts st%t on %t A.c%""%g% St-, M%n '%, !o" 1 ' o, 1%gun%, $ th E&g%"&o C%" %g%, % 4 th 4" me& stu&ent o! the CST on +o%"&) At %+out /H00 0-m-, %s the +us "e%che& th%t 0%"t o! the 0o+'%c on o! ,%4, 1%gun%, $he"e the n%t on%' h gh$%4 c"osse& % "% '"o%& t"%c5, t +um0e& %g% nst the eng ne o! % t"% n then 0%ss ng +4 $ th such te"" ! c !o"ce th%t the ! "st s ; $hee's o! the '%tte" $e"e &e"% 'e&, the eng ne %n& the !"ont 0%"t o! the +o&4 o! the +us $%s $"ec5e&, the &" #e" o! the +us & e& nst%nt'4, $h 'e m%n4 o! ts 0%ssenge"s, E&g%"&o %mong them, $e"e se#e"e'4 n?u"e&) E&g%"&o $%s unconsc ous &u" ng the ! "st /( &%4s %!te" the %cc &ent &u" ng $h ch se#e"%' o0e"%t ons $e"e 0e"!o"me& on h m $h ch $e"e 0% & +4 the 1T,)The 0"esent %ct on $%s ! 'e& to "eco#e" !o" E&g%"&o, !"om the 1T, %n& the MRR Co-, %n& tot%' sum o! P/12,000-00 %s %ctu%', com0ens%to"4, mo"%' %n& e;em0'%"4 &%m%ges, %n& !o" h s 0%"ents, the sum o! P1A,00-00 n the s%me conce0ts)The 1T, & sc'% me& ' %+ ' t4 c'% m ng th%t the %cc &ent $%s &ue to the neg' gence o! ts co)&e!en&%nt, the M%n '% R% '"o%& Com0%n4, !o" not 0"o# & ng % c"oss ng +%" %t the 0o nt $he"e the n%t on%' h gh$%4 c"osse& the "% '$%4 t"%c5, %n& !o" th s "e%son ! 'e& the co""es0on& ng c"oss)c'% m %g% nst the '%tte" com0%n4 to "eco#e" the tot%' sum o! P1A,1E4-<( "e0"esent ng the e;0enses 0% & to E&g%"&o C%" %g%)The M%n '% R% '"o%& Com0%n4, n tu"n, &en e& ' %+ ' t4 u0on the com0'% nt %n& c"oss)c'% m %''eg ng th%t t $%s the "ec5'ess neg' gence o! the +us &" #e" th%t c%use& the %cc &ent-

ISSUE 3ON the MRC shou'& +e ' %+'e !o" the c"oss)c'% m %g% nst tF 3ON the &" #e" o! the t"% n $%s neg' gentHELD NO- SC u0he'& the TC ! n& ngs- The TC !oun& th%t +%se& on the c"e& +'e MRC $ tness *"ego" o I'uson&o, the t"% n &" #e" $%s not neg' gent %s 1) the $h st'e o! 'ocomot #e $%s soun&e& !ou" t mes K t$o 'ong %n& t$o sho"t> 2%s the t"% n $%s %00"o; m%te'4 /00 mete"s !"om the c"oss ng2; %n& th%t 2) %nothe" 1T, +us $h ch %"" #e& %t the c"oss ng %he%& o! the one $he"e E&g%"&o C%" %g% $%s % 0%ssenge", 0% & hee& to the $%"n ng %n& sto00e& +e!o"e the 2c"oss ng2, $h 'e (the 1T, tse'! %&m tte&) the &" #e" o! the +us no- 1// tot%''4 & s"eg%"&e& the $%"n ngON GAMA*ESH )The C%" %g%s, c'% m th%t the %$%"& o! P105 com0ens%to"4 &%m%ges to E&u%"&o s n%&e9u%te cons &e" ng the n%tu"e %n& the %!te" e!!ects o! the 0h4s c%' n?u" es su!!e"e& +4 h m- 7e s # "tu%''4 %n n#%' &, +oth 0h4s c%''4 %n& ment%''4) 1T, %&m ts th%t un&e" A"t- 2201 o! the C # ' Co&e the &%m%ges !o" $h ch the o+' go", gu 't4 o! % +"e%ch o! cont"%ct +ut $ho %cte& n goo& !% th, s ' %+'e sh%'' +e those th%t %"e the n%tu"%' %n& 0"o+%+'e conse9uences o! the +"e%ch %n& $h ch the 0%"t es h%& !o"eseen o" cou'& h%#e "e%son%+'4 !o"eseen %t the t me the o+' g%t on $%s const tute&, 0"o# &e& such &%m%ges, %cco"& ng to A"t- 21EE o! the s%me Co&e, h%#e +een &u'4 0"o#e&)C0on th s 0"em se t c'% ms th%t on'4 the %ctu%' &%m%ges su!!e"e& +4 E&g%"&o C%" %g% cons st ng o! me& c%', hos0 t%' %n& othe" e;0enses n the tot%' sum o! P1<,<1E-<( %"e $ th n th s c%tego"4- ,ut the SC nc'u&e& h s ncome shou'& he ! n sh the me& c%' cou"se %n& 0%ss the co""es0on& ng +o%"& e;%m n%t ons n the c%tego"4 $h ch the 1T, cou'& h%#e "e%son%+'4 +een !o"eseen %t the t me he +o%"&e& the +us No- 1// %s he $%s %'"e%&4 % !ou"th)4e%" stu&ent n me& c ne n % "e0ut%+'e un #e"s t4) SC then nc"e%se& the com0ens%to"4 &%m%ges to P2(5) SC u0he'& the TC ! n& ng th%t the mo"%' &%m%ges %n& %tt4=s !ees c%nnot +e g"%nte& !o" A221E enume"%tes the nst%nces $hen mo"%' &%m%ges m%4 +e co#e"e& %n& the c%se un&e" cons &e"%t on &oes not !%'' un&e" %n4 one o! them- It $%s s% & th%t t c%nnot +e cons &e"e& un&e" NG n ' ght o! the 0"ee; st ng cont"%ctu%' "e'%t onsh 0 +et- C%" %g% %n& 1T,- Ne the" $ou'& 1T, +e he'& ' %+'e un&e" A2220 on %ccount o! +"e%ch o! ts cont"%ct o! c%"" %ge +ec%use s% & &e!en&%nt & & not %ct !"%u&u'ent'4 o" n +%& !% th n connect on the"e$ th- 1T, h%& e;e"c se& &ue & ' gence n the se'ect on %n& su0e"# s on o! ts em0'o4ees ' 5e the &" #e"s o! ts +uses n connect on $ th the & sch%"ge o! the " &ut es %n& so t must +e

!ACHELOR EGPRESS VS CA ,SUPRA" CANGCO VS #RR ,SUPRA" ISAAC VS AL A##EN ,SUPRA"

37

TRANSPORTATION AND PUBLIC UTILITY LAW


cons &e"e& %n o+' go" n goo& !% th- As !o" %tto"ne4:s !ees, s nce &oes not !%'' un&e" %n4 o! the nst%nces enume"%te& n A220A, he c%n=t +e %$%"&e& such !ees) The c'% m m%&e +4 s% & s0ouses !o" %ctu%' %n& com0ens%to"4 &%m%ges s ' 5e$ se $ thout me" t- As he'& +4 the t" %' cou"t, n so !%" %s the 1T, s conce"ne&, the 0"esent %ct on s +%se& u0on % +"e%ch o! cont"%ct o! c%"" %ge to $h ch s% & s0ouses $e"e not % 0%"t4, %n& ne the" c%n the4 0"em se the " c'% m u0on the neg' gence o" ,uasi+delict o! the 1T, !o" the s m0'e "e%son th%t the4 $e"e not themse'#es n?u"e& %s % "esu't o! the co'' s on +et$een the 1T, +us %n& t"% n o$ne& +4 the M%n '% R% '"o%& Com0%n4DispositionH Mo& ! e& %s %+o#e n& c%te&, the %00e%'e& ?u&gment s he"e+4 %!! "me& n %'' othe" "es0ects, $ th costs %g% nst %00e''%nt 1T,-

-A2010-

PROF. RODRIGO LOPE QUIMBO


Sh 00 ng Com0%n4 %t I'o 'o C t4, %n& % 'eg%' %ss st%nt o! the P%& ''% 1%$ O!! ce; th%t u0on 'e%"n ng o! the &e%th o! he" son n the 0'%ne c"%sh, she su!!e"e& shoc5 %n& ment%' %ngu sh, +ec%use he" son $ho $%s st '' s ng'e $%s ' # ng $ th he"; %n& th%t N c%no" h%& % ' !e nsu"%nce o! P20,000, the 0"ocee&s o! $h ch $e"e 0% & to h s s ste") E&u%"&o M%te, m%n%ge" o! the A'' e& O#e"se%s T"%& ng Com0%n4, test ! e& th%t the &ece%se&, N c%no" P%& ''%, $%s one o! the nco"0o"%to"s o! the com0%n4 %n& %'so ts # ce)0"es &ent %n& t"e%su"e", "ece # ng % month'4 s%'%"4 o! P4(() Is%%c M- Re4es, %u& to" o! the P%& ''% Sh 00 ng Com0%n4, &ec'%"e& th%t the &ece%se& $%s the P"es &ent %n& *ene"%' o! the ! "m %n& "ece #e& % s%'%"4 o! P1,(00 month'4) The t" %' cou"t 0"omu'g%te& % &ec s on, o"&e" ng the PA1 to 0%4 the 0'% nt !! the sum o! P4<<,000-00 %s %$%"& !o" the e;0ecte& ncome o! the &ece%se& N c%no"; P10,000-00 %s mo"%' &%m%ges; P10,000-00 %s %tto"ne4:s !ees; %n& to 0%4 the costs T" %' cou"t com0ute& th s on the +%s s o! N c%no"=s ' !e e;0ect%nc4) CA %!! "me& the &ec s on o! the t" %' cou"t in totoISSUE 3ON the CA e""e& n com0ut ng the n&emn t4 !o" the &e%th o! N c%no" P%& ''% on the +%s s o! h s ' !e e;0ect%nc4 "%the" th%n the ' !e e;0ect%nc4 o! 0" #%te "es0on&ent, h s on'4 'eg%' he "HELD NO) Pet t one" "e' es on 2the 0" nc 0'e o! '%$ gene"%''4 "ecogn .e& %n& %00' e& +4 the cou"ts n the Cn te& St%tes2 th%t 2the cont"o'' ng e'ement n &ete"m n ng 'oss o! e%"n ngs %" s ng !"om &e%th s, %s est%+' she& +4 %utho" t es, the ' !e e;0ect%nc4 o! the &ece%se& o" o! the +ene! c %"4, $h che#e" s sho"te"- 7o$e#e", "eso"t to !o"e gn ?u" s0"u&ence $ou'& +e 0"o0e" on'4 ! no '%$ o" ?u" s0"u&ence s %#% '%+'e 'oc%''4 to sett'e % cont"o#e"s4- E#en n the %+sence o! 'oc%' st%tute %n& c%se '%$, !o"e gn ?u" s0"u&ence s on'4 0e"su%s #e) Cn&e" A"t c'e 1<64 %n& A"t c'e 2206(1) o! the C # ' Co&e, the %$%"& o! &%m%ges !o" &e%th s com0ute& on the +%s s o! the ' !e e;0ect%nc4 o! the &ece%se&, not o! h s +ene! c %"4- A"t- 2206 0"o# &esH A"t- 2206- The %mount o! &%m%ges !o" &e%th c%use& +4 % c" me o" 9u%s ) &e' ct sh%'' +e %t 'e%st th"ee thous%n& 0esos, e#en though the"e m%4 h%#e +een m t g%t ng c "cumst%nces- In %&& t onH (1) The &e!en&%nt sh%'' +e ' %+'e !o" the loss of the earning ca.acity of the deceased, and the indemnity shall be .aid to the heirs of the latter ; such n&emn t4 sh%'' n e#e"4 c%se +e %ssesse& %n& %$%"&e& +4 the cou"t, un'ess the &ece%se& on %ccount o! 0e"m%nent 0h4s c%' & s%+ ' t4 not c%use& +4 the &e!en&%nt, h%& no e%"n ng c%0%c t4 %t the t me o! h s &e%th; - - ) In the c%se o! <avila vs1 *A:, $h ch n#o'#e& the s%me t"%g c 0'%ne c"%sh, th s Cou"t &ete"m ne& not on'4 PA1s ' %+ ' t4 !o" neg' gence o" +"e%ch o! cont"%ct, +ut %'so the m%nne" o! com0ut ng the &%m%ges &ue the 0'% nt !! the"e n $h ch t +%se& on the ' !e e;0ect%nc4 o! the &ece%se& to m%5e %n %''o$%nce !o" these c "cumst%nces %n& cons &e", !o" 0u"0oses o! th s c%se, % "e&uct on o! h s ' !e e;0ect%nc4 to 2( 4e%"s) The 0et t one":s content on th%t %ctu%' &%m%ges un&e" A"t c'e 2206 o! the C # ' Co&e must +e 0"o#en +4 c'e%" %n& s%t s!%cto"4 e# &ence s

PAN A# VS IAC ,SUPRA" VILLA RE TRANSIT V CA /1 SCRA (11 CONCEPCION; 6e+"u%"4 1A, 1E<0 (ch" sc%0s)
NATURE Pet t on !o" "e# e$ +4 ce"t o"%" o! % &ec s on o! the CA FACTS ) 1H/0 %m- P%ssenge" +us o$ne& J o0e"%te& +4 &e!en&%nt 'e!t 1 ng%4en !o" M%n '%- Among ts 0%4 ng 0%ssenge"s $%s the &ece%se& Nu ntos) 4H(( %m- M n%' n, P%m0%ng%- ,us !"ont%''4 h t "e%" s &e o! +u''c%"t ! ''e& $ th h%4- The en& o! % +%m+oo 0o'e on to0 o! the h%4'o%& 0enet"%te& th"ough the g'%ss $ n&sh e'& %n& '%n&e& on the !%ce o! Nu ntos- The 0o'e '%n&e& on h s 'e!t e4e %n& the +one o! the 'e!t s &e o! h s !%ce $%s !"%ctu"e&) P%t"o'm%n ,%c%n +"ought the n?u"e& to the 0"o# nc %' hos0 t%'Nu ntos & e&) P#t "es0on&ents %"e the s ste"s %n& on'4 su"# # ng he "s o! Nu ntos $ho & e& s ng'e- The4 +"ought th s %ct on %g% nst B ''% Re4 %s o$ne" J o0e"%to", !o" +"e%ch o! cont"%ct o! c%"" %ge) B ''% Re4 conten&e& th%t m sh%0 $%s &ue to !o"tu tous e#ent) TC %n& CA !oun& th%t the %cc &ent $%s &ue to neg' gence o! the +us &" #e"ISSUEIS Amount o! &%m%ges "eco#e"%+'e HELD ) Gete"m n%t on o! %mount o! &%m%ges &e0en&s m% n'4 u0on (%) num+e" o! 4"s on the +%s s o! $Fc the &%m%ges sh%'' +e com0ute& %n& (+) "%te %t $Fc 'osses sust% ne& +4 s% & "es0on&ents shou'& +e ! ;e&) 6 "st !%cto"H +%se& on ' !e e;0ect%nc4 o! Nu ntos %t // 1F/ 4"s I +e ng o#e" 2E o" %"oun& /0 4"s %t the t me o! &e%th I +4 %00'4 ng !o"mu'% (2F/

O (A0)/0) X ' !e e;0ect%nc4) %&o0te& n the Ame" c%n E;0ect%nc4 T%+'e o! Mo"t%' t4 o" the %ctu%" %' o! Com+ ne& E;0e" ence T%+'e o! Mo"t%' t4) B ''% Re4 s% & th%t A'c%nt%"% #- Su""o shou'& +e !o''o$e& $he"e &%m%ges $e"e com0ute& on 4 4" +%s s, &es0 te !%ct th%t # ct m the"e $%s /E 4"s o'& %n& h%& ' !e e;0ect%nc4 o! 2A-E 4"s- Th s c%se ho$e#e", sn=t cont"o'' ng- In th s c%se, none o! the 0%"t es h%& 9uest one& the 0"o0" et4 o! 4 4" +%s s %&o0te&) 1 !e e;0ect%nc4 s not on'4 "e'e#%nt +ut m0t e'ement n ! ; ng %mt "eco#e"%+'e +4 "es0on&ents- Though t sn=t the so'e e'ement, no cogent "e%son $%s g #en to $%""%nt ts & s"eg%"& %n& %&o0t on o! % 0u"e'4 %"+ t"%"4 st%n&%"& such %s the 4 4" "u'e) ReH "%te, B ''% Re4 m0ugns &ec s on %00e%'e& !"om u0on g"oun& th%t the &%m%ges $ '' h%#e to +e 0% & no$, $he"e%s, most o! those sought to +e n&emn ! e& $ '' +e su!!e"e& 4e%"s '%te"- Dust the s%me, the %"gument o! B ''% Re4 s o!!set +4 the !%ct th%t, though 0%4ment $ '' h%#e to t%5e 0'%ce u0on ! n%' t4 o! &ec s on, the ' %+ ' t4 o! B ''% Re4 h%& +een ! ;e& %t % "%te $Fc s the %nnu%' s%'%"4 o! Nu ntos- 1o$e" cou"ts & &n=t cons &e" Nu ntos= 0otent %' to nc"e%se h s !utu"e ncome) 3e %"e conce"ne& $F &ete"m n%t on o! 'osses F &%m%ges sust% ne& +4 "es0on&ents %s &e0en&ents %n& ntest%te he "s- Such &%m%ges cons st, not o! the !u'' %mount o! h s e%"n ngs, +ut o! su00o"t the4 "ece #e& o" $ou'& h%#e "ece #e& !" h m h%& he not & e&) In ! ; ng %mt o! su00o"t, necess%"4 e;0enses o! h s o$n ' # ng shou'& +e &e&ucte& !" h s e%"n ngs- E%"n ng c%0%c t4, %s e'ement o! &%m%ges to one=s est%te !o" h s &e%th +4 $"ong!u' %ct s h s net e%"n ng c%0%c t4 o" h s c%0%c t4 to %c9u "e mone4 'ess the necess%"4 e;0enses !o" h s o$n ' # ng) In othe" $o"&s, the %mt "eco#e"%+'e s not the 'oss o! the ent "e e%"n ng +ut th%t 0o"t on $Fc +ene! c %"4 $ou'& h%#e "ece #e&- On'4 net, not g"oss e%"n ngs %"e cons &e"e&-

PHILIPPINE AIRLINES V CA ,PADILLA" 1A( SCRA 110 *RINO)ANCINO; M%4 A, 1EE0 (?oe4)
FACTS ) PA1 St%"' ght 6' ght No- 26 c"%she& on Mt- ,%co, M n&o"o, one hou" %n& ! !teen m nutes %!te" t%5eo!! -The 0'%ne $%s I&ent ! e& %s PI)C1//, % GC)/ t40e % "c"%!t m%nu!%ctu"e& n 1E42 %n& %c9u "e& +4 PA1 n 1E4AIt h%& !'o$n %'most 1A,000 hou"s %t the t me o! ts ''!%te& !' ght- It h%& +een ce"t ! e& %s % "$o"th4 +4 the C # ' Ae"on%ut cs A&m n st"%t on) Among the !%t%' t es $%s 0%ssenge" N c%no" P%& ''%- 7 s mothe", N%t # &%& A- B&%- &e P%& ''%, $%s h s on'4 'eg%' he ") As % "esu't o! he" son:s &e%th, M"s- P%& ''% ! 'e& % com0'% nt %g% nst PA1, &em%n& ng 0%4ment o! P600,000 %s %ctu%' %n& com0ens%to"4 &%m%ges, 0'us e;em0'%"4 &%m%ges %n& P60,000 %s %tto"ne4:s !ees) PA1 &en e& th%t the %cc &ent $%s c%use& +4 ts neg' gence o" th%t o! %n4 o! the 0'%ne:s !' ght c"e$, %n& th%t, mo"eo#e", the &%m%ges sought $e"e e;cess #e %n& s0ecu'%t #e) In %&& t on to the st 0u'%t ons o! !%cts, 0" #%te "es0on&ent P%& ''% test ! e& th%t he" son, N c%no" P%& ''%, 0" o" to h s &e%th, $%s 2E 4e%"s o'&, s ng'e, n goo& he%'th, P"es &ent %n& *ene"%' M%n%ge" o! P%& ''%

38

TRANSPORTATION AND PUBLIC UTILITY LAW


co""ect, +ut ts 0e"ce0t on th%t such e# &ence $%s not 0"esente& n th s c%se, s e""o"- 3 tnesses M%te %n& Re4es $e"e com0etent to test !4 on m%tte"s $ th n the " 0e"son%' 5no$'e&ge +ec%use o! the " 0os t ons, such %s the ncome %n& s%'%"4 o! the &ece%se& (Sec- /0, Ru'e 1/0, Ru'es o! Cou"t)- S nce the4 $e"e c"oss)e;%m ne& +4 0et t one":s counse', %n4 o+?ect ons to the " com0etence %n& the %&m ss + ' t4 o! the " test mon es, $e"e &eeme& $% #e&- The 0%4"o''s o! the com0%n es %n& the &ece&ent:s ncome t%; "etu"ns cou'& h%#e const tute& the +est e# &ence o! h s s%'%" es, +ut the"e s no "u'e & s9u%' !4 ng com0etent o!! ce"s o! the co"0o"%t on !"om test !4 ng on the com0ens%t on o! the &ece%se& %s %n o!! ce" o! the s%me co"0o"%t on, %n& n %n4 e#ent, no t me'4 o+?ect on $%s m%&e to the " test mon es) 6o''o$ ng the 0"oce&u"e use& +4 the Su0"eme Cou"t n the c%se o! <avila vs- *A:, the t" %' cou"t &ete"m ne& the # ct ms g"oss %nnu%' ncome to +e P2/,100 +%se& on h s 4e%"'4 s%'%" es o! P1A,000 !"om the P%& ''% Sh 00 ng Com0%n4 %n& P(,100 !"om the A'' e& O#e"se%s T"%& ng Co"0o"%t on- Cons &e" ng th%t he $%s s ng'e, the cou"t &e&ucte& PE,200 %s 4e%"'4 ' # ng e;0enses, "esu't ng n % net ncome o! P1/,E00 (not P1(,E00 %s e""oneous'4 st%te& n the &ec s on)- S nce N c%no" P%& ''% $%s on'4 2E 4e%"s o'& %n& n goo& he%'th, the t" %' cou"t %''o$e& h m % ' !e e;0ect%nc4 o! /0 4e%"s- Mu't 0'4 ng h s %nnu%' net ncome o! P1/,E00 +4 h s ' !e e;0ect%nc4 o! /0 4e%"s, the 0"o&uct s P41<,000 (not P4<<,000) $h ch s the %mount o! &e%th n&emn t4 &ue h s mothe" %n& on'4 !o"ce& he " ) 3e ! n& me" t n the 0" #%te "es0on&ent:s 0'e% !o" "e' e! !o" the 'ong &e'%4 th s c%se h%s su!!e"e& on %ccount o! 0et t one":s mu't 0'e %00e%'s,ec%use o! the 16 4e%" &e'%4 n the & s0os t on o! th s c%se, 0" #%te "es0on&ent he"se'! h%s %'"e%&4 ?o ne& he" son n the *"e%t ,e4on& $ thout +e ng %+'e to "ece #e the n&emn t4 she $e'' &ese"#e&Cons &e" ng ho$ n!'%t on h%s &e0'ete& the #%'ue o! the ?u&gment n he" !%#o", n the nte"est o! ?ust ce, the 0et t one" shou'& 0%4 'eg%' "%te o! nte"est on the n&emn t4 &ue he"Dispositi$e Pet t on s & sm sse&- The &ec s on o! the t" %' cou"t s %!! "me& $ th mo& ! c%t on- The 0et t one" s o"&e"e& to 0%4 the 0" #%te "es0on&ent o" he" he "s &e%th n&emn t4 n the sum o! P41<,000 (not P4<<,000), $ th 'eg%' "%te o! nte"est o! 6Y .er annum !"om the &%te o! the ?u&gment, unt ' t s !u''4 0% &- Costs %g% nst the 0et t one"-

-A2010-

PROF. RODRIGO LOPE QUIMBO


) The %''eg%t ons n the com0'% nt su+st%nt %''4 %#e"H 6 "st, Th%t the"e $%s % cont"%ct to !u"n sh C%""%scoso % ! "st c'%ss 0%ss%ge co#e" ng, %mongst othe"s, the ,%ng5o5)Tehe"%n 'eg; Secon&, Th%t s% & cont"%ct $%s +"e%che& $hen A " 6"%nce !% 'e& to !u"n sh ! "st c'%ss t"%ns0o"t%t on %t ,%ng5o5; %n& Th "&, Th%t the"e $%s +%& !% th $hen A " 6"%nce:s em0'o4ee com0e''e& C%""%scoso to 'e%#e h s ! "st c'%ss %ccommo&%t on +e"th 2%!te" he $%s %'"e%&4 se%te&2 %n& to t%5e % se%t n the tou" st c'%ss, +4 "e%son o! $h ch he su!!e"e& ncon#en ence, em+%""%ssments %n& hum ' %t ons, the"e+4 c%us ng h m ment%' %ngu sh, se" ous %n; et4, $oun&e& !ee' ngs %n& soc %' hum ' %t on, "esu't ng n mo"%' &%m%ges) It s t"ue th%t the"e s no s0ec ! c ment on o! the te"m +%& !% th n the com0'% nt- ,ut, the n!e"ence o! +%& !% th s the"e; t m%4 +e &"%$n !"om the !%cts %n& c "cumst%nces set !o"th the"e n- The cont"%ct $%s %#e""e& to est%+' sh the "e'%t on +et$een the 0%"t es- ,ut the st"ess o! the %ct on s 0ut on $"ong!u' e;0u's on) It s co""ect to s%4 th%t the CA & & not use the te"m 2+%& !% th2- ,ut c%n t +e &ou+te& th%t the "ec t%' o! !%cts 0o nts to +%& !% thV The m%n%ge" not on'4 0"e#ente& C%""%scoso !"om en?o4 ng h s " ght to % ! "st c'%ss se%t; $o"se, he m0ose& h s %"+ t"%"4 $ ''; he !o"c +'4 e?ecte& h m !"om h s se%t, m%&e h m su!!e" the hum ' %t on o! h%# ng to go to the tou" st c'%ss com0%"tment ) ?ust to g #e $%4 to %nothe" 0%ssenge" $hose " ght the"eto h%s not +een est%+' she&- Ce"t% n'4, th s s +%& !% th- 6o", 2+%& !% th2 contem0'%tes % 2st%te o! m n& %!! "m%t #e'4 o0e"%t ng $ th !u"t #e &es gn o" $ th some mot #e o! se'!) nte"est o" '' $ '' o" !o" u'te" o" 0u"0oses-2 ) A cont"%ct to t"%ns0o"t 0%ssenge"s s 9u te & !!e"ent n 5 n& %n& &eg"ee !"om %n4 othe" cont"%ctu%' "e'%t on- Its +us ness s m% n'4 $ th the t"%#e'' ng 0u+' c- It n# tes 0eo0'e to %#% ' o! the com!o"ts %n& %&#%nt%ges t o!!e"s- The cont"%ct o! % " c%"" %ge, the"e!o"e, gene"%tes % "e'%t on %tten&e& $ th % 0u+' c &ut4- Neg'ect o" m%'!e%s%nce o! the c%"" e":s em0'o4ees, n%tu"%''4, cou'& g #e g"oun& !o" %n %ct on !o" &%m%ges) P%ssenge"s &o not cont"%ct me"e'4 !o" t"%ns0o"t%t on- The4 h%#e % " ght to +e t"e%te& +4 the c%"" e":s em0'o4ees $ th 5 n&ness, "es0ect, cou"tes4 %n& &ue cons &e"%t on- The4 %"e ent t'e& to +e 0"otecte& %g% nst 0e"son%' m scon&uct, n?u" ous '%ngu%ge, n& gn t es %n& %+uses !"om such em0'o4ees- So t s th%t %n4 "u&e o" & scou"teous con&uct on the 0%"t o! em0'o4ees to$%"&s % 0%ssenge" g #es the '%tte" %n %ct on !o" &%m%ges %g% nst the c%"" e") 6o" the $ ''!u' m%'e#o'ent %ct o! A " 6"%nce:s m%n%ge", h s em0'o4e", must %ns$e"- A"t 21 o! the CC s%4sH An4 0e"son $ho $ ''!u''4 c%uses 'oss o" n?u"4 to %nothe" n % m%nne" th%t s cont"%"4 to mo"%'s, goo& customs o" 0u+' c 0o' c4 sh%'' com0ens%te the '%tte" !o" the &%m%geC0on the 0"o# s ons o! A"t 221E (10), CC, mo"%' &%m%ges %"e "eco#e"%+'eDisposition Gec s on o! the CA s A66IRMEG-

) R%!%e' C%""%scoso, % c # ' eng nee", $%s % mem+e" o! % g"ou0 o! 4A 6 ' 0 no 0 'g" ms th%t 'e!t M%n '% !o" 1ou"&es, 6"%nce) A " 6"%nce, th"ough ts %utho" .e& %gent, Ph ' 00 ne A " 1 nes, ssue& to h m % ! "st c'%ss "oun& t" 0 % "0'%ne t c5et !"om M%n '% to Rome- 6"om M%n '% to ,%ng5o5, he t"%#e''e& n ! "st c'%ss, +ut %t ,%ng5o5, the m%n%ge" o! the % "' ne !o"ce& h m to #%c%te the ! "st c'%ss se%t he $%s occu04 ng +ec%use the"e $%s % $h te m%n, $ho, the m%n%ge" %''ege&, h%& % +ette" " ght to the se%t- 3hen %s5e& to #%c%te, C%""%scoso "e!use&, %n& to'& the m%n%ge" th%t h s se%t $ou'& +e t%5en o#e" h s &e%& +o&4- A commot on ensue& %n& m%n4 o! the 6 ' 0 no 0%ssenge"s got ne"#ous n the tou" st c'%ss- 3hen the4 !oun& out th%t C%""%scoso $%s h%# ng % hot & scuss on $ th the m%n%ge", the4 c%me %c"oss to C%""%scoso %n& 0%c ! e& h m to g #e h s se%t to the $h te m%nC%""%scoso "e'uct%nt'4 g%#e h s ! "st c'%ss se%t n the 0'%ne) The C6I o! M%n '% sentence& A " 6"%nce to 0%4 C%""%scoso P2(,000 +4 $%4 o! mo"%' &%m%ges; P10,000 %s e;em0'%"4 &%m%ges; P/E/-20 "e0"esent ng the & !!e"ence n !%"e +et$een ! "st c'%ss %n& tou" st c'%ss !o" the 0o"t on o! the t" 0 !"om ,%ng5o5 to Rome, these #%" ous %mounts $ th nte"est %t the 'eg%' "%te !"om the &%te o! the ! ' ng o! the com0'% nt unt ' 0% &; 0'us P/,000 !o" %tto"ne4s: !ees; %n& the costs o! su t) On %00e%', the CA s' ght'4 "e&uce& the %mount o! "e!un& on C%""%scoso:s 0'%ne t c5et !"om P/E/-20 to P/A/-10, %n& #ote& to %!! "m the %00e%'e& &ec s on K n %'' othe" "es0ects-> ISSUES 1- 3ON C%""%scoso $%s ent t'e& to the ! "st c'%ss se%t he c'% ms2- 3ON C%""%scoso s ent t'e& to mo"%' &%m%gesHELD 1- 8ESRatio O"%' e# &ence c%nnot 0"e#% ' o#e" $" tten e# &enceReasoning A " 6"%nce:s o$n $ tness test ! e& th%t the KOP> n the t c5et me%nt th%t the "ese"#%t on !o" % ! "st c'%ss %ccommo&%t on !o" C%""%scoso $%s con! "me&- The cou"t c%nnot +e' e#e th%t %!te" such con! "m%t on the4 h%& % #e"+%' un&e"st%n& ng th%t the :! "st c'%ss: t c5et ssue& $ou'& +e su+?ect to con! "m%t on n 7ong5ong) I! % ! "st)c'%ss)t c5et ho'&e" s not ent t'e& to % ! "st c'%ss se%t, not$ thst%n& ng the !%ct th%t se%t %#% '%+ ' t4 n s0ec ! c !' ghts s the"e n con! "me&, then %n % " 0%ssenge" s 0'%ce& n the ho''o$ o! the h%n&s o! %n % "' ne- 3h%t secu" t4 then, c%n % 0%ssenge" h%#eV It $ '' %'$%4s +e %n e%s4 m%tte" !o" %n % "' ne % &e& +4 ts em0'o4ees, to st" 5e out the #e"4 st 0u'%t ons n the t c5et, %n& s%4 th%t the"e $%s % #e"+%' %g"eement to the cont"%"4- 3h%t ! the 0%ssenge" h%& % sche&u'e to !u'! ''V 3e h%#e 'ong 'e%"ne& th%t, %s % "u'e, % $" tten &ocument s0e%5s % un !o"m '%ngu%ge; th%t s0o5en $o"& cou'& +e noto" ous'4 un"e' %+'e- I! on'4 to %ch e#e st%+ ' t4 n the "e'%t ons +et$een 0%ssenge" %n& % " c%"" e", %&he"ence to the t c5et so ssue& s &es "%+'e- Such s the c%se he"e2- 8ESReasoning A " 6"%nce=s c'% m s th%t C%""%scoso:s %ct on s 0'%nte& u0on +"e%ch o! cont"%ct; th%t to %utho" .e %n %$%"& !o" mo"%' &%m%ges the"e must +e %n %#e"ment o! !"%u& o" +%& !% th; %n& th%t the &ec s on o! the CA !% 's to m%5e % ! n& ng o! +%& !% th-

@. #ORAL FORES VS #IRANDA ,SUPRA" AIR FRANCE V. CARRASCOSO 1A SCRA 1(( SANC7EM; Se0tem+e" 2A, 1E66 (" c54)
NATURE Pet t on !o" "e# e$ on ce"t o"%" FACTS

LopeJ '). Pa+ Amer(.a+ &or/- A(r2a1) *R 1)2241( ,eng.on; M%"ch /0, 1EE6 (s%"%h)
Fa.*)B

39

TRANSPORTATION AND PUBLIC UTILITY LAW


Rese"#%t ons !o" ! "st c'%ss %ccommo&%t ons n 6' ght 2 o! P%n Ame" c%n 3o"'& A "$%4s !"om To54o to S%n 6"%nc sco on 24 M%4 1E60 $e"e m%&e $ th PAN AM on 2E M%"ch 1E60, +4 K8ou" T"%#e' *u &e> %genc4, s0ec ! c%''4, +4 Ge'! n 6%ust no, !o" then Sen%to" 6e"n%n&o 1o0e., h s $ !e M%" % D- 1o0e., h s son) n)'%$ A'!"e&o Monte' +%no, D"-, %n& h s &%ughte" M"s- A'!"e&o Monte' +%no, D"- (M '%g"os 1o0e. Monte' +%no)PAN AM=s S%n 6"%nc sco he%& o!! ce con! "me& the "ese"#%t ons on /1 M%"ch 1E60- 6 "st c'%ss t c5ets !o" the %+o#ement one& !' ght $e"e su+se9uent'4 ssue& +4 PAN AM on M%4 21 %n& 2/, 1E60, n !%#o" o! Sen%to" 1o0e. %n& h s 0%"t4- The tot%' !%"e o! PE,444 !o" %'' o! them $%s !u''4 0% & +e!o"e the t c5ets $e"e ssue&- As sche&u'e& Sen%to" 1o0e. %n& 0%"t4 'e!t M%n '% +4 No"th$est A "' nes on 24 M%4 1E60, %"" # ng n To54o %t (H/0 P-M- o! th%t &%4- As soon %s the4 %"" #e& Sen%to" 1o0e. "e9ueste& M n ste" ,usuego o! the Ph ' 00 ne Em+%ss4 to cont%ct PAN AM=s To54o o!! ce "eg%"& ng the " ! "st c'%ss %ccommo&%t ons !o" th%t e#en ng=s !' ght- 6o" the g #en "e%son th%t the ! "st c'%ss se%ts the"e n $e"e %'' +oo5e& u0, ho$e#e", PAN AM=s To54o o!! ce n!o"me& M n ste" ,usuego th%t PAN AM cou'& not %ccommo&%te Sen%to" 1o0e. %n& 0%"t4 n th%t t" 0 %s ! "st c'%ss 0%ssenge"s- Sen%to" 1o0e. the"eu0on g%#e the " ! "st c'%ss t c5ets to M n ste" ,usuego !o" h m to sho$ the s%me to PAN AM=s To54o o!! ce, +ut the '%tte" ! "m'4 "e te"%te& th%t the"e $%s no %ccommo&%t on !o" them n the ! "st c'%ss, st%t ng th%t the4 cou'& not go n th%t !' ght un'ess the4 too5 the tou" st c'%ss the"e n- Gue to 0"ess ng eng%gements %$% t ng Sen%to" 1o0e. %n& h s $ !e n the Cn te& St%tes Z he h%& to %tten& % +us ness con!e"ence n S%n 6"%nc sco the ne;t &%4 %n& she h%& to un&e"go % me& c%' chec5)u0 n M%4o C' n c, Rocheste", M nnesot%, on 2A M%4 1E60 %n& nee&e& th"ee &%4s "est +e!o"e th%t n S%n 6"%nc sco Z Sen%to" 1o0e. %n& 0%"t4 $e"e const"% ne& to t%5e PAN AM=s !' ght !"om To54o to S%n 6"%nc sco %s tou" st 0%ssenge"s- Sen%to" 1o0e. ho$e#e" m%&e t c'e%", %s n& c%te& n h s 'ette" to PAN AM=s To54o o!! ce on th%t &%te, th%t the4 & & so Kun&e" 0"otest> %n& $ thout 0"e?u& ce to !u"the" %ct on %g% nst the % "' neSu t !o" &%m%ges $%s the"e%!te" ! 'e& +4 Sen%to" 1o0e. %n& 0%"t4 %g% nst PAN AM on 2 Dune 1E60 n the C6I o! R .%'- A''eg ng +"e%ch o! cont"%cts n +%& !% th +4 P%n Am, the 1o0e.es %s5e& !o" P(00,000 %ctu%' %n& mo"%' &%m%ges, P100,000 e;em0'%"4 &%m%ges P2(,000 %tto"ne4=s !ees, 0'us costs- PAN AM ! 'e& ts %ns$e" on 22 Dune 1E60, %sse"t ng th%t ts !% 'u"e to 0"o# &e ! "st c'%ss %ccommo&%t ons to 0'% nt !!s $%s &ue to honest e""o" o! ts em0'o4ees- It %'so nte"0ose& % counte"c'% m !o" %tto"ne4=s !ees o! P2(,000- A!te" t" %', the C6I "en&e"e& ts &ec s on on 1/ No#em+e" 1E6/, $h ch o"&e"e& P%n Am to 0%4 the 1o0e.es the !o''o$ ng (%) P100,000-00 %s mo"%' &%m%gesH (+) P20,000-00 %s e;em0'%"4 &%m%ge; (c) P2(,000-00 %s %tto"ne4=s !ees, %n& the costs o! the %ct onThe 1o0e.es ho$e#e", on 21 No#em+e" 1E6/, mo#e& !o" "econs &e"%t on o! s% & ?u&gment, %s5 ng th%t mo"%' &%m%ges +e nc"e%se& to P400,000 %n& th%t 6Y nte"est 0e" %nnum on the %mount o! the %$%"& +e g"%nte&- P%n Am o00ose& the s%me- Act ng the"eon the t" %' cou"t ssue& %n o"&e" on 14 Gecem+e" 1E6/, o"&e" ng P%n Am to 0%4 the 1o0e.es (%) P1(0,000-00 %s mo"%' &%m%ges; (+) P2(,000-00 %s e;em0'%"4 &%m%ges; $ th 'eg%' nte"est on +oth !"om the &%te o! the ! ' ng o! the com0'% nt unt ' 0% &; %n& (c) P2(,000-00 %s %tto"ne4=s !ees, %n& the costs o! the %ct on-> It s !"om s% & ?u&gment, %s thus

-A2010-

PROF. RODRIGO LOPE QUIMBO


the "ese"#%t ons, nc'u& ng those o! Sen%to" 1o0e. %n& 0%"t4- Secon&'4, %!te" sen& ng % $ "e to S%n 6"%nc sco he%& o!! ce on 1E A0" ' 1E60 st%t ng h s e""o" %n& %s5 ng !o" "e nst%tement, 7e""%n. s m0'4 !o"got %+out the m%tte"- Not$ thst%n& ng the "e0'4 o! S%n 6"%nc sco he%& o!! ce n 22 A0" ' 1E60 th%t t c%nnot "e nst%te Sen%to" 1o0e. %n& 0%"t4, t $%s %ssume& %n& t%5en !o" g"%nte& th%t "e nst%tement $ou'& +e m%&e- Th "&'4, A"m%n&o G%# '% con! "me& the 1o0e.es= "ese"#%t on n % 0hone c%'' on 2< A0" ' 1E60 to P%n Am=s t c5et se''e"s, $hen %t the t me t %00e%"e& n the 1o0e.es= "ese"#%t on c%"& th%t the4 $e"e on'4 $% t) ' ste& 0%ssenge"s- 6ou"th'4, P%n Am=s t c5et se''e"s ssue& the 1o0e.es= t c5ets on M%4 21 %n& 2/, 1E60, $ thout ! "st chec5 ng the " "ese"#%t ons ?ust +e!o"e ssu ng s% & t c5ets- An&, ! n%''4, not one %mong P%n Am=s %gents not ! e& Sen%to" 1o0e. %n& 0%"t4 th%t the " "ese"#%t ons h%& +een c%nce''e&, % 0"ec%ut on th%t cou'& h%#e %#e"te& the " ente" ng $ th P%n Am nto cont"%cts th%t the '%tte" h%& %'"e%&4 0'%ce& +e4on& ts 0o$e" to 0e"!o"m#ora/-amage) As % 0"o; m%te "esu't o! P%n Am=s +"e%ch n +%& !% th o! ts cont"%cts $ th the 1o0e.es= the '%tte" su!!e"e& soc %' hum ' %t on, $oun&e& !ee' ngs, se" ous %n; et4 %n& ment%' %ngu sh- It m%4 not +e hum ' %t ng to t"%#e' %s tou" st 0%ssenge"s; t s hum ' %t ng to +e com0e''e& to t"%#e' %s such, cont"%"4 to $h%t s " ght!u''4 to +e e;0ecte& !"om the cont"%ctu%' un&e"t%5 ng#ora/ -amage)? H4m(/(a*(o+ (+ re/a*(o+ *o )*a*4) ,Se+a*or LopeJ" Sen%to" 1o0e. $%s then Sen%te P"es &ent P"o Tem0o"e- Inte"n%t on%' c%"" e"s ' 5e P%n Am 5no$ the 0"est ge o! such %n o!! ce- 6o" the Sen%te s not on'4 the C00e" Ch%m+e" o! the Ph ' 00 ne Cong"ess, +ut the n%t on=s t"e%t4)"%t !4 ng +o&4- It m%4 %'so +e ment one& th%t n h s O!! ce Sen%to" 1o0e. $%s n % 0os t on to 0"es &e n m0e%chment c%ses shou'& the Sen%te s t %s m0e%chment T" +un%'- An& he $%s !o"me" B ce)P"es &ent o! the Ph ' 00 nes- Sen%to" 1o0e. $%s go ng to the Cn te& St%tes to %tten& % 0" #%te +us ness con!e"ence o! the , n%'+%ng%n)Is%+e'% Sug%" Com0%n4; +ut h s %!o"es% & "%n5 %n& 0os t on $e"e +4 no me%ns 'e!t +eh n&, %n& n !%ct he h%& % secon& eng%gement %$% t ng h m n the Cn te& St%tes; % +%n9uet ten&e"e& +4 6 ' 0 no !" en&s n h s hono" %s Sen%te P"es &ent P"o Tem0o"e- 6o" the mo"%' &%m%ges sust% ne& +4 h m, the"e!o"e, %n %$%"& o! P100,000,000 s %00"o0" %te#ora/ -amage)? P01)(.a/ -().omfor* ,#r). #ar(a LopeJ" M"s- M%" % D- 1o0e., %s $ !e o! Sen%to" 1o0e., sh%"e& h s 0"est ge %n& the"e!o"e h s hum ' %t on- In %&& t on, she su!!e"e& 0h4s c%' & scom!o"t &u" ng the 1/)hou" t" 0 (( hou"s !"om To54o to 7ono'u'u %n& A hou"s !"om 7ono'u'u to S%n 6"%nc sco)- A'though Sen%to" 1o0e. st%te& th%t Kshe $%s 9u te $e'',> he o+# ous'4 me%nt "e'%t #e'4 $e'', s nce the "est o! h s st%tement s th%t t$o months +e!o"e, she $%s %tt%c5e& +4 se#e"e !'u %n& 'ost 10 0oun&s o! $e ght %n& th%t she $%s %&# se& +4 G"- S son to go to the Cn te& St%tes %s soon %s 0oss +'e !o" me& c%' chec5)u0 %n& "e'%;%t on- In !%ct, Sen%to" 1o0e. st%te&, %s sho$n % !e$ 0%ges %!te" n the t"%nsc" 0t o! h s test mon4, th%t M"s- 1o0e. $%s s c5 $hen she 'e!t the Ph ' 00 nes- It s not h%"& to see th%t n he" con& t on then % 0h4s c%' & scom!o"t sust% ne& !o" th "teen hou"s m%4 $e'' +e cons &e"e& % 0h4s c%' su!!e" ng- An& e#en $ thout "eg%"& to the no se %n& t"e0 &%t on ns &e the 0'%ne, the !%ct th%t the se%t ng s0%ces n the tou" st c'%ss %"e 9u te n%""o$e" th%n n ! "st c'%ss, the"e +e ng s ; se%ts to % "o$ n the

"econs &e"e&, th%t +oth 0%"t es h%#e %00e%'e&- P%nAm t%5es ssue $ th the ! n& ng o! the cou"t % 9uo th%t t %cte& n +%& !% th n the +"e%ch o! s% & cont"%cts- The 1o0e.es, on the othe" h%n&, "% se 9uest ons on the %mount o! &%m%ges %$%"&e& n the " !%#o", see5 ng th%t the s%me +e nc"e%se& to % tot%' o! P6(0,000ISSUES 3ON P%n Am $%s n +%& !% th- (8es) 3ON P%n Am $%s g"oss'4 neg' gent- (8es) 3ON Mo"%' %n& e;em0'%"4 &%m%ges shou'& +e %$%"&e&- (8es)

HELD A-m())(o+ of 3a- fa(*0 It s %&m tte& th%t P%n Am, th"ough ts %gents, +4 ts o$n e# &ence, ! "st c%nce''e& the 1o0e.es= "ese"#%t ons +4 m st%5e %n& the"e%!te" &e' +e"%te'4 %n& ntent on%''4 $ thhe'& !"om the '%tte" o" the " t"%#e' %gent the !%ct o! s% & c%nce''%t on, 'ett ng them go on +e' e# ng th%t the " ! "st c'%ss "ese"#%t ons stoo& #%' & %n& con! "me&- In so m s'e%& ng the 1o0e.es nto 0u"ch%s ng ! "st c'%ss t c5ets n the con# ct on th%t the4 h%& con! "me& "ese"#%t ons !o" the s%me, $hen n !%ct the4 h%& none, P%n Am $ '!u''4 %n& 5no$ ng'4 0'%ce& tse'! nto the 0os t on o! h%# ng to +"e%ch ts cont"%cts $ th the 1o0e.es shou'& the"e +e no '%st)m nute c%nce''%t on +4 othe" 0%ssenge"s +e!o"e !' ght t me- Such %ctu%t on o! P%n Am m%4 n&ee& h%#e +een 0"om0te& +4 noth ng mo"e th%n the 0"omot on o! ts se'!) nte"est n ho'& ng on to Sen%to" 1o0e. %n& 0%"t4 %s 0%ssenge"s n ts !' ght %n& !o"ec'os ng on the " ch%nces to see5 the se"# ces o! othe" % "' nes th%t m%4 h%#e +een %+'e to %!!o"& them ! "st c'%ss %ccommo&%t ons- A'' the s%me, n 'eg%' contem0'%t on such con&uct %'"e%&4 %mounts to %ct on n +%& !% thO*0er fa.*) 0(g0/(g0*(+g 3a- fa(*0 At the t me the 1o0e.es +ought the " t c5ets, &e!en&%nt, the"e!o"e, n +"e%ch o! ts 5no$n &ut4, m%&e the 1o0e.es +e' e#e th%t the " "ese"#%t ons h%& not +een c%nce''e&- An %&& t on%' n& c%t on o! th s s the !%ct th%t u0on the !%ce o! the t$o t c5ets o! "eco"&, n%me'4, the t c5et ssue& to A'!"e&o Monte' +%no, D"- on 21 M%4 1E60 %n& th%t ssue& to M"s- A'!"e&o Monte' +%no, D"-, on 2/ M%4 1E60, the "ese"#%t on st%tus s st%te& %s KOP>- Such $ ''!u' non)& sc'osu"e o! the c%nce''%t on o" 0"etense th%t the "ese"#%t ons !o" the 1o0e.es stoo&, %n& not s m0'4 the e""oneous c%nce''%t on tse'!, s the !%cto" to $h ch s %tt" +ut%+'e the +"e%ch o! the "esu't ng cont"%cts- As ! to !u"the" em0h%s .e ts +%& !% th on the m%tte", P%n Am su+se9uent'4 0"omote& the em0'o4ee $ho c%nce''e& the 1o0e.es= "ese"#%t ons %n& to'& them noth ng %+out t- The "eco"& sho$s th%t s% & em0'o4ee, M%" %no 7e""%n., $%s not su+?ecte& to n#est g%t on %n& sus0ens on +4 &e!en&%nt +ut nste%& $%s g #en % "e$%"& n the !o"m o! %n nc"e%se o! s%'%"4 n Dune o! the !o''o$ ng 4e%"Arg4e+-o, m()*a6e)? Neg/(ge+.e )o gro)) a+- re.6/e)) amo4+*) *o ma/(.e or 3a- fa(*0 At %n4 "%te, g"%nt ng %'' the m st%5es %&#%nce& +4 P%n Am, the"e $ou'& %t 'e%st +e neg' gence so g"oss %n& "ec5'ess %s to %mount to m%' ce o" +%& !% th- 6 "st'4, not$ thst%n& ng ent" es n the "ese"#%t on c%"&s th%t the "ese"#%t ons c%nce''e& %"e those o! the Ru! nos on'4, 7e""%n. m%&e the m st%5e, %!te" "e%& ng s% & ent" es, o! sen& ng % $ "e c%nce'' ng %''

40

TRANSPORTATION AND PUBLIC UTILITY LAW


!o"me" %s %g% nst !ou" to % "o$ n the '%tte", %n& th%t n tou" st c'%ss the"e s #e"4 ' tt'e s0%ce !o" "ec' n ng n # e$ o! the c'ose" & st%nce +et$een "o$s, $ '' su!! ce to sho$ th%t the %!o"es% & 0%ssenge" n&ee& e;0e" ence& 0h4s c%' su!!e" ng &u" ng the t" 0- A&&e& to th s, o! cou"se, $%s the 0% n!u' thought th%t she $%s &e0" #e& +4 P%nAm, %te" h%# ng 0% & !o" %n& e;0ecte& the s%me,! the most su t%+'e 0'%ce !o" he", the ! "st c'%ss, $he"e e# &ent'4 the +est o! e#e"4th ng $ou'& h%#e +een g #en he", the +est se%t, se"# ce, !oo& %n& t"e%tment- Such & !!e"ence n com!o"t +et$een ! "st c'%ss %n& tou" st c'%ss s too o+# ous to +e "ecounte&, s n !%ct the "e%son !o" the !o"me"=s e; stence, %n& s "ecogn .e& +4 the % "' ne n ch%"g ng % h ghe" !%"e !o" t %n& +4 the 0%ssenge"s n 0%4 ng s% & h ghe" "%te- Acco"& ng'4, cons &e" ng the tot%' t4 o! he" su!!e" ng %n& hum ' %t on, %n %$%"& to M"s- M%" % D- 1o0e. o! P(0,000-00 !o" mo"%' &%m%ges $ '' +e "e%son%+'e#ora/ -amage)? S0are- pre)*(ge ,#r. % #r). #o+*e/(3a+o" M"- %n& M"s- A'!"e&o Monte' +%no, D"-, $e"e t"%#e' ng %s mme& %te mem+e"s o! the !%m '4 o! Sen%to" 1o0e.- The4 !o"me& 0%"t o! the Sen%to"=s 0%"t4 %s sho$n %'so +4 the "ese"#%t on c%"&s o! PAN AM- As such the4 ' 5e$ se sh%"e& h s 0"est ge %n& hum ' %t on- A'though P%n Am conten&s th%t % !e$ $ee5s +e!o"e the !' ght the4 h%& %s5e& the " "ese"#%t ons to +e ch%nge& !"om ! "st c'%ss to tou" st c'%ss, $h ch & & not m%te" %' .e, the s%me &oes not me%n the4 su!!e"e& no sh%me n h%# ng to t%5e tou" st c'%ss &u" ng the !' ght- 6o" +4 th%t t me the4 h%& %'"e%&4 +een m%&e to 0%4 !o" ! "st c'%ss se%ts %n& the"e!o"e to e;0ect ! "st c'%ss %ccommo&%t ons- As st%te&, t s one th ng to t%5e the tou" st c'%ss +4 !"ee cho ce; % !%" & !!e"ent th ng to +e com0e''e& to t%5e t not$ thst%n& ng h%# ng 0% & !o" ! "st c'%ss se%ts- As note& n the " mot on !o" "econs &e"%t on ! 'e& n the cou"t % 9uo, the4 $e"e s%t s! e& $ th P2(,000-00 e%ch !o" s% & 0e"sons- 6o" the " soc %' hum ' %t on, the"e!o"e, the %$%"& to them o! P2(,000-00 s "e%son%+'eRa*(o+a/e 3e0(+- e;emp/ar1 or .orre.*('e -amage)? Pa+ Am /(a3/e for e;emp/ar1 or .orre.*('e -amage) The "%t on%'e +eh n& e;em0'%"4 o" co""ect #e &%m%ges s, %s the n%me m0' es, to 0"o# &e %n e;%m0'e o" co""ect on !o" 0u+' c goo&- P%n Am h%# ng +"e%che& ts cont"%cts n +%& !% th, the cou"t m%4 %$%"& e;em0'%"4 &%m%ges n %&& t on to mo"%' &%m%ges (A"t c'es 222E, 22/2, Ne$ C # ' Co&e)- In # e$ o! ts n%tu"e, t shou'& +e m0ose& n such %n %mount %s to su!! c ent'4 %n& e!!ect #e'4 &ete" s m '%" +"e%ch o! cont"%cts n the !utu"e +4 P%n Am o" othe" % "' nes- In th s ' ght, $e ! n& t ?ust to %$%"& P<(,000-00 %s e;em0'%"4 o" co""ect #e &%m%gesDe*erm(+a*(o+ of *0e amo4+*) >4)*(f(eThe %mount o! &%m%ges %$%"&e& n th s %00e%' h%s +een &ete"m ne& +4 %&e9u%te'4 cons &e" ng the o!! c %', 0o' t c%', soc %', %n& ! n%nc %' st%n& ng o! the o!!en&e& 0%"t es on one h%n&, %n& the +us ness %n& ! n%nc %' 0os t on o! the o!!en&e" on the othe"- 6u"the" cons &e" ng the 0"esent "%te o! e;ch%nge %n& the te"ms %t $h ch the %mount o! &%m%ges %$%"&e& $ou'& %00"o; m%te'4 +e n C-S- &o''%"s, the Cou"t s %'' the mo"e o! the # e$ th%t s% & %$%"& s 0"o0e" %n& "e%son%+'eDISPOSITION The Su0"eme Cou"t mo& ! e& the ?u&gments %00e%'e& !"om so %s to %$%"& n !%#o" o! the 1o0e.es %n& %g% nst P%n AmH (1) P200,000-00 %s mo"%' &%m%ges, & # &e& %mong the 1o0e.es, thusH P100,000-00 !o" Sen%te P"es &ent P"o Tem0o"e 6e"n%n&o 1o0e.; P(0,000-00 !o" h s $ !e M%" % D- 1o0e. P2(,000-00 !o" h s son) n)'%$ A'!"e&o Monte' +%no,

-A2010-

PROF. RODRIGO LOPE QUIMBO


1u!th%ns% h%& % ! "st c'%ss se%t %#% '%+'e !o" ts Mon&%4 !' ght- O"t g%s mme& %te'4 %s5e& h m to get the se%t %n& to see to t th%t h s t c5et +e con! "me& %n& #%' &%te& !o" the !' ght %n& % ! "st c'%ss se%t- The m%n the"e%!te" %s5e& !o" O"t g%s: 0%ss0o"t %n& othe" t"%#e' 0%0e"s %n& %tt%che& % #%' &%t ng st c5e" (E;h + t 2G)12) on !' ght cou0on No- 4 (E;h + t 2,2) $h ch co""es0on&e& to the Rome)7ong5ong 'eg o! h s T3A T c5et No- 11()460)461)A<A The st c5e" "ec tesH 6' ght ResC%"" e" No- G%te T me St%tus 17 646 1A No#- 12H/( P-M- O-P3 sh ng to +e &ou+'4 su"e, O"t g%s %g% n "e9ueste& the A' t%' % em0'o4ee to c%'' +%c5 the 1u!th%ns% o!! ce to "echec5 $hethe" h s t c5et $%s "e%''4 con! "me& %n& #%' &%te&- The m%n & & so, %!te" $h ch he to'& O"t g%s th%t h s t c5et h%& +een chec5e&, #%' &%te&, %n& con! "me& %s sho$n +4 the $o"& 2O-P-2 on the st c5e"- The s%me em0'o4ee '%te" $"ote on the co#e" o! the 0'% nt !!:s t c5et 210-1( Te"m n%')/6, # % * o' t 2 (E;h + ts 2C2 %n& 2C)12) %n& to'& h m to +e n the % " te"m n%' on Mon&%4, No#em+e" 1A, %t 10H00 A-MThe !o''o$ ng Mon&%4, O"t g%s chec5e& out o! h s hote' %n& too5 % t%; to the te"m n%', %"" # ng the"e %+out EH/0 A-M- 7e un'o%&e& h s +%gg%ge %n& 0"ocee&e& to the counte" n ch%"ge o! the 1u!th%ns% 0%ssenge"sThe '%&4 %t the counte" to'& h m the 1u!th%ns% h%& no s0%ce !o" h m th%t &%4- O"t g%s "e9ueste& he" to chec5 $ th he" m% n o!! ce, $h ch she & & +4 c%'' ng t u0- A!te" c%'' ng, she %0o'og .e& %n& s% & the 0'% nt !!:s t c5et $%s n o"&e" %n& $ou'& +e con! "me& %n& #%' &%te&- On he" "e9uest, O"t g%s h%& h s 'ugg%ge $e ghe& %n& $%s g #en the !"ee 'ugg%ge %''o$%nce o! % ! "st c'%ss 0%ssenge"- 7e $%s !u"the"mo"e %s5e& to 0%4 A00 ' "%s !o" +us !%"e %n& <00 ' "%s %s em+%"5%t on t%;- Then O"t g%s, %'ong $ th othe" 0%ssenge"s, one o! $hom $%s Am%&o C%st"o o! the Ge#e'o0ment ,%n5 o! the Ph ' 00 nes, +o%"&e& % +us !o" the % "0o"tAt the % "0o"t, the 0'% nt !! h%n&e& o#e" h s t c5et to the m%n +eh n& the 1u!th%ns% counte", $ho to'& h m e#e"4th ng $%s %'' " ght- At th%t ?unctu"e, the 0'% nt !! he%"& h s n%me c%''e&- 7e n9u "e& ! he $%s +e ng c%''e& !"om %n em0'o4ee o! the 1u!th%ns% %n&, on "ece # ng %n %!! "m%t #e %ns$e", s% & he $%s O"t g%s- The em0'o4ee %s5e& !o" h s 0%ss0o"t %n& othe" 0%0e"s %n&, %!te" e;%m n ng h s 0%ss0o"t, $he"e h s 6 ' 0 no n%t on%' t4 %00e%"s, s% & he cou'& not +o%"& the 0'%ne th%t &%4 +ec%use h s se%t $ou'& +e g #en to % ,e'g %n- O"t g%s %s5e& the m%n $h4 he $%s &o ng th%t to h m $hen h s t c5et $%s con! "me& %n& #%' &%te& ! "st c'%ss- The 1u!th%ns% em0'o4ee "e0' e& he $%s so""4 +ut O"t g%s cou'& not 'e%#e6e%" ng he $ou'& h%#e % "ecu""ence o! h s he%"t % 'ment, O"t g%s too5 % n t"og'4ce" n 0 '' $h ch h s &octo" %&# se& h m to t%5e on occ%s ons o! st"ess- The 0'% nt !! then to'& the 1u!th%ns% m%n to +" ng the ,e'g %n o#e" so th%t h s 0%0e"s m%4 +e e;%m ne& to &ete"m ne $hethe" he h%& % 0"e!e""e& " ght to O"t g%s: se%t +ut the 1u!th%ns% em0'o4ee tu"ne& &o$n the "e9uest, "% se& h s #o ce, %n& s% & ! the 0'% nt !! &es "e&, he cou'& t%5e %n econom4 se%t %n& he $ou'& +e %''o$e& % "e!un&- O"t g%s "eto"te& he $%s not nte"este& n % "e!un& %n& $h%t he $%nte& $%s to t"%#e' ! "st c'%ss n %cco"&%nce $ th h s t c5etTh s %"gument occu""e& n the 0"esence o! the othe" 0%ssenge"s, one o! $hom $%s Am%&o C%st"o, %n& the 0'% nt !! !e't em+%""%sse& %n& hum ' %te& +ec%use the 1u!th%ns% em0'o4ee $%s shout ng %t h m %n& t"e%t ng h m the $%4 he & &- O"t g%s m%&e %nothe" "e9uest, n%me'4, th%t

D"- %n& P2(,000-00 !o" h s &%ughte" M"s- A'!"e&o Monte' +%no, D"-; (2) P<(,000-00 %s e;em0'%"4 o" co""ect #e &%m%ges; (/) nte"est %t the 'eg%' "%te o! 6Y 0e" %nnum on the mo"%' %n& e;em0'%"4 &%m%ges %!o"e) st%te&, !"om 14 Gecem+e" 1E6/, the &%te o! the %men&e& &ec s on o! the cou"t % 9uo, unt ' s% & &%m%ges %"e !u''4 0% &; (4) P(0,000-00 %s %tto"ne4=s !ees; %n& (() the costs- The Cou"t & sm sse& the counte"c'% m-

ORTIGAS. CR V LUFTHANSA GER#AN AIRLINES *-R- No- 1)2A<</ ,ARREGO; Dune /0, 1E<( (m n )
NATURE G "ect %00e%'s o! +oth 0%"t es !"om the C6I &ec s on Kcon&emn ng the &e!en&%nt to 0%4 0'% nt !! the %mount o! P1005 %s mo"%' &%m%ges, P/05 e;em0'%"4, P205 %tt4=s !ees, !o" 1u!th%ns%=s !% 'u"e to com0'4 $ th ts o+' g%t on to g #e ! "st c'%ss %ccommo&%t on to O"t g%s, % 6 ' 0 no 0%ssenge" ho'& ng % ! "st c'%ss t c5et, %gg"%#%te& +4 the g # ng o! the s0%ce nste%& to % ,e'g %n %n& the m0"o0e" con&uct o! ts %gents n &e%' ng $ th h m &u" ng the occ%s on o! such & sc" m n%to"4 # o'%t on o! ts cont"%ct o! c%"" %geFACTS ) *ene"%' Agents o! the &e!en&%nt 1u!th%ns% *e"m%n A "' nes ssue& to the 0'% nt !! 6 "st C'%ss P%n Ame" c%n T c5et No- 0264E214<0<6 to A1 $h ch $ou'& t%5e h m !"om M%n '%, the 0'%ce o! &e0%"tu"e, to 7ong5ong, #%" ous c t es n the Cn te& St%tes, Eu"o0e, As %, the 6%" E%st, %n& then +%c5 to M%n '%, the 0'%ce o! &est n%t on- O"t g%s: t c5et !o" %'' these & !!e"ent 'egs o! h s ?ou"ne4 $%s ! "st c'%ss7e 'e!t M%n '% Octo+e" 12, 1E6/, %s sche&u'e&- In Ne$ 8o"5, he &ec &e& to 'e%#e out some c t es, nc'u&e& n h s o" g n%' t ne"%"4, to +e n 7ong5ong on the 1Eth &%4 o! No#em+e", 1E6/, !o" se#e"%' %00o ntments he h%& the"e- 7e $ent to the T"%ns 3o"'& A "' nes %n& h%& h s P%n Ame" c%n t c5et ch%nge& $ th 6 "st C'%ss T3A T c5et No11()460)4(1) A<A to AA1- 7 s T3A t c5et $%s %'so ! "st c'%ss !o" the ent "e t" 0 !"om Ne$ 8o"5 to se#e"%' Eu"o0e%n c t es, nc'u& ng Rome, %n& thence to the 6%" E%st, $ th M%n '% %'so %s the 0'%ce o! &est n%t onO"t g%s %"" #e& n &ue cou"se n Rome- To +e su"e he cou'& !'4 ! "st c'%ss to 7ong5ong on No#em+e" 1A, 1E6/, !o" h s %00o ntments the"e the ne;t &%4, O"t g%s "e0% "e& to the o!! ce o! the A' t%' % on S%tu"&%4, No#em+e" 16, 1E6/, to +oo5 0%ss%ge- The m%n %t the counte" o! the A' t%' % o!! ce to'& h m t h%& no !' ght on Mon&%4 +ut the 1u!th%ns% h%&The m%n the"eu0on c%''e& u0 the o!! ce o! the 1u!th%ns% %n&, %!te" t%'5 ng to %n em0'o4ee the"eo!, to'& O"t g%s th%t the 1u!th%ns% h%& no ! "st c'%ss, +ut on'4 econom4, se%ts %#% '%+'e on ts Mon&%4 !' ghtO"t g%s %ns$e"e& th%t he $%s not $ '' ng to t%5e %n econom4 se%t %n& "e9ueste& the em0'o4ee to c%'' u0 othe" % "' nes- Then the 0hone "%ngThe em0'o4ee %ns$e"e& %n& %!te"$%"&s n!o"me& O"t g%s th%t the

41

TRANSPORTATION AND PUBLIC UTILITY LAW


the em0'o4ee c%'' othe" % "' nes to n9u "e ! the4 h%& !' ghts to 7ong5ong th%t &%4 +ut he once mo"e tu"ne& &o$n the 0'e% %n& ns ste& th%t O"t g%s t"%#e' econom4, $ th the 0"om se th%t he $ '' +e t"%ns!e""e& to ! "st c'%ss n C% "o %n& on$%"& to 7ong5ongA!te" 0"om s ng to, the m%n $ent ns &e % "oom %n&, %!te" % $h 'e, c%me out %n& %ssu"e& the 0'% nt !! he $ou'& t"%#e' ! "st c'%ss !"om C% "o to 7ong5ong +ec%use he sent % commun c%t on th%t t shou'& +e &one- 7e then ?otte& &o$n some 'ette"s on O"t g%s: t c5et- The 0'% nt !! "e0' e& he $%s not s%t s! e& $ th the %""%ngement +ut $%s const"% ne& to %g"ee to t +ec%use he h%& to +e n 7ong5ong the ne;t &%4, h s 'ugg%ge $%s n %'' 0"o+%+ ' t4 %'"e%&4 ns &e the 0'%ne, he $%s not ce"t% n he cou'& st '' secu"e % hote' "ese"#%t on, the m%n%ge" o! the hote' $he"e he st%4e& h%# ng to'& h m t $ou'& +e h%"& !o" h m to get %nothe" "ese"#%t on once he chec5s out, %n& he $%s %ssu"e& he $ou'& +e g #en ! "st c'%ss 0%ss%ge !"om C% "o on$%"&C0on %"" #%' n C% "o, the 0'% nt !! "e9ueste& the 1u!th%ns% %gent to t"%ns!e" h m to ! "st c'%ss +ut the %gent s% & he cou'& not %n& th%t he & & not "ece #e %n4 commun c%t on !"om Rome to th%t e!!ect- O"t g%s %'so "e9ueste& the m%n to ! n& out ! the"e $e"e othe" % "' nes h%# ng 0'%nes 'e%# ng th%t &%4 +ut h s "e9uest $%s ' 5e$ se &en e&- The m%n, ho$e#e", 0"om se& th%t %t Gh%"h%m, O"t g%s $ '' +e t"%ns!e""e& to ! "st c'%ss- O"t g%s h%& no %'te"n%t #e +ut to cont nue t"%#e' ng %s +e!o"e +ut he & & so %g% n un&e" 0"otestAt Gh%"h%m, the 0'% nt !! once mo"e "e9ueste& % t"%ns!e" to ! "st c'%ss +ut $%s %'so to'& +4 the 1u!th%ns% %gent th%t he h%& not "ece #e& %n4 commun c%t on %+out the ch%nge %n& the "e9uest cou'& not +e g"%nte&The 0'% nt !! h%& to t"%#e' 0e"!o"ce econom4 !"om Gh%"h%m- In C%'cutt%, O"t g%s once %g% n "e9ueste& % t"%ns!e" o" th%t he +e %ss ste& n +oo5 ng 0%ss%ge on othe" 0'%nes +ut $%s %'so "e!use&- It $%s on'4 n ,%ng5o5 $hen the ch e! ste$%"& %s5e& h m ! he $%nte& to mo#e o#e" to ! "st c'%ss +ut h%# ng +een %'"e%&4 em+%""%sse& %n& hum ' %te& %n& the t" 0 to 7ong5ong +e ng on'4 th"ee hou"s, he s% & he $ou'& not %s % s gn o! 0"otestIn 7ong5ong, O"t g%s 0"oteste& %g% nst the t"e%tment g #en h m +ut $%s to'& +4 the 1u!th%ns% o!! ce he h%& to ! 'e h s 0"otest n M%n '%, t +e ng the 0o nt o! &est n%t on- 7e & & so +4 me%ns o! % 'ette", &%te& No#em+e" 2(, 1E6/ !o''o$e& +4 %nothe" 'ette", &%te& Gecem+e" 20, 1E6/ %n& not h%# ng "ece #e& %n4 &e! n te %ns$e", he +"ought th s su tA'though O"t g%s: t c5et !o" the !' ght !"om Rome to 7ong5ong $%s #%' &%te& %n& con! "me& +4 the A' t%' %, ts %ct +oun& %n& o+' g%te& the 1u!th%ns%- The A' t%' % %n& 1u!th%ns% %"e mem+e"s o! the Inte"n%t on%' A " T"%ns0o"t Assoc %t on (IATA)- It s %&m tte& th%t %s such mem+e", the A' t%' % c%n ssue t c5ets !o" othe" mem+e"s o! the %ssoc %t on ' 5e the 1u!th%ns%, P%n Ame" c%n 3o"'& A "$%4s, %n& othe"s- P%"- 10, O"&e" o! A0" ' 2E, 1E64, %n& E;h + t 272, ce"t ! c%t on o! the m%n%ge" o! the A' t%' %- As &e !"om +e ng mem+e"s o! the IATA, the A' t%' % %n& 1u!th%ns% %"e 0oo' 0%"tne"s %n& con&uct % ?o nt se"# ce $ th nte"ch%nge%+'e !' ghts !o" the Eu"o0e%n)6%" E%st)%n& Aust"%' % secto"sP%"- 11, O"&e" o! A0" ' 2E, 1E64- Cn&e" the 0oo' %g"eement the4 un&e"t%5e to %&he"e to the %00"o0" %te IATA "egu'%t ons %n& to t%5e me%su"es to 0"o# &e & st" ct s%'es o!! ces $ th e#e"4 0oss + ' t4 !o" c'ose coo0e"%t on n the 0"omot on o! the 0oo' se"# ces co#e"e& +4 the %g"eement, nc'u& ng 2"ese"#%t on %n& +oo5 ng2- The4 !u"the"mo"e, n

-A2010-

PROF. RODRIGO LOPE QUIMBO


com0%n4 to 5ee0 the 0'% nt !!s %s the " 0%ssenge"s n the tou" st c'%ss, the"e+4 "et% n ng the +us ness %n& 0"omot ng the com0%n4:s se'!) nte"est %t the e;0ense o!, em+%""%ssment, & scom!o"t %n& hum ' %t on on the 0%"t o! the 0'% nt !!sAIR 6RANCE B CARRASCOSOH 7e $%s ssue& +4 the Ph ' 00 ne A " 1 nes, %s %gent o! the &e!en&%nt A " 6"%nce, % t c5et !o" ! "st c'%ss "oun& t" 0 !"om M%n '% to Rome- 6"om M%n '%, C%""%scoso t"%#e''e& ! "st c'%ss, %s 0e" s% & t c5et, +ut %t ,%ng5o5, the M%n%ge" o! the &e!en&%nt % "' ne !o"ce& h m to #%c%te the ! "st c'%ss se%t +ec%use the"e $%s % $h te m%n $ho %''ege&'4 h%& % +ette" " ght the"eto, $ thout, ho$e#e", sho$ ng h m the +%s s !o" such 0"e!e"enceThe e# &ence sho$s th%t &e!en&%nt # o'%te& ts cont"%ct o! t"%ns0o"t%t on $ th 0'% nt !! n bad faith, with the aggravating circumstances th%t &e!en&%nt:s M%n%ge" n ,%ng5o5 $ent to the e;tent o! th"e%ten ng the 0'% nt !! n the 0"esence o! m%n4 0%ssenge"s to h%#e h m th"o$n out o! the % "0'%ne to g #e the 2! "st c'%ss2 se%t th%t he $%s occu04 ng to, %g% n us ng the $o"&s o! the $ tness E"nesto *- Cuento, % 2$h te m%n2 $hom he (&e!en&%nt:s M%n%ge") $ she& to %ccommo&%te, %n& the &e!en&%nt h%s not 0"o#en th%t th s 2$h te m%n2 h%& %n4 2+ette" " ght2 to occu04 the 2! "st c'%ss2 se%t th%t the 0'% nt !! $%s occu04 ng, &u'4 0% & !o", %n& !o" $h ch the co""es0on& ng 2! "st c'%ss2 t c5et $%s ssue& +4 the &e!en&%nt to h m-2 These 0"ece&ents, %s m%4 +e seen, %00'4 !ou")s9u%"e to he"e n 0'% nt !!s c%se- Ge!en&%nt:s ' %+ ' t4 !o" $ ''!u' %n& $%nton +"e%ch o! ts cont"%ct o! c%"" %ge $ th 0'% nt !! s, the"e!o"e, n&u+ t%+'e2- The Cou"t nc"e%se& the com0ens%t on !o" mo"%' &%m%ges !"om P1005 to P1(05- P1005 $%s not enoughThe Cou"t $ent th"ough the 0%st c%ses= "u' ngsCuenc% on'4 got P205 mo"%' &%m%ges, +ut the SC s% & th%t $%s +ec%use he on'4 su!!e"e& th"ough !o" 1 'eg o! the !' ght- In th s c%se, ho$e#e", the o!!ense $%s "e0e%te& 4 t mesC%""%scoso on'4 "ece #e& P2(5, +ut n th%t c%se the 0'% nt !! & & not com0'% n %g% nst th%t %$%"&- It $%s A " 6"%nce $ho c'% me& t $%s e;cess #e- ,ut , such, & sc" m n%to"4 %cts o! the &e!en&%nts n those c%ses $h ch $e"e not on'4 # o'%t #e o! the " cont"%ctu%' o+' g%t ons +ut %'so o!!ens #e to hum%n & gn t4 %n& n%t on%' o" "%c %' 0" &e const tute %+out the most ?ust ! %+'e g"oun& !o" the %$%"& o! mo"%' &%m%ges, !o" the "esu't ng n?u"4 the"e!"om c%nnot +ut c%use mmense ment%' %ngu sh, +esm "che& "e0ut%t on, $oun&e& !ee' ngs, mo"%' shoc5 %n& soc %' hum ' %t on 1o0e. "ece #e& P1005 mo"%' &%m%ges, so 1u!th%ns% th n5s th%t, %s com0%"e& to $h%t % !o"me" # ce)0"es &ent "ece #e&, O"t g%s= com0ens%t on $%s g"oss'4 e;cess #e- The cou"t s% & 2%'though 0'% nt !! h%s not he'& %n4 e'ect #e 0u+' c o!! ce, he h%s, ho$e#e", % & st ngu she& "eco"& %s % 0" #%te c t .en, % '%$4e", +us nessm%n, % c # c %n& "e' g ous 'e%&e", % mem+e" o! nume"ous +o%"&s %n& o"g%n .%t ons %s $e'' %s 'oc%' %n& nte"n%t on%' +o& es, %n& s the "ec 0 ent o! %$%"&s %n& c t%t ons !o" outst%n& ng se"# ces %n& %ch e#ements-2 In&ee&, un&e" the 0"o#en !%cts n the "eco"&, 3e c%nnot "eg%"& 0'% nt !! n %n4 n!e" o" 0os t on # s)%)# s B ce P"es &ent 1o0e. n the h ghest c "c'es o! Ph ' 00 ne soc et4 %n& n the +us ness %n& "e' g ous $o"'&, not to s0e%5 o! h s st%n& ng n go#e"nment o!! c %'&om,es &e the"e s %g% n the & s0%" t4 +et$een then 1o0e. c%se %n& th s one th%t he"e the o!!ense, $h ch, %s n Cuenc%, s %gg"%#%te& +4 the

e!!ect con! "m n the %g"eement th%t t c5ets o! one, othe" th%n !"ee %n& "e&uce& t c5ets, m%4 +e #%' &%te& +4 the othe"The 0'%c ng +4 the A' t%' % o! % st c5e" on the 0'% nt !!:s t c5et o+' g%te& the 1u!th%ns% to g #e h m % ! "st c'%ss se%t on ts !' ght !"om Rome to 7ong5ong on No#em+e" 1A, 1E6/ISSUEIS 1- 3ON O"t g%s s ent t'e& to &%m%ges 2- 7o$ much s he ent t'e& toV HELD 1- 8ES Reasoning the"e c%n +e no &ou+t %s to the " ght o! O"t g%s to &%m%ges, +oth mo"%' %n& e;em0'%"4- 3e h%#e cons stent'4 %&he"e& to so & ct%te,eg nn ng $ th Cuenc%, $he"e n the Cou"t "e?ecte& the theo"4 th%t %n % " c%"" e" s ' %+'e on'4 n the e#ent o! &e%th o" n?u"4 su!!e"e& +4 % 0%ssenge", +ec%use, %cco"& ng to the Cou"t, to so ho'& $ou'& +e t%nt%mount to &ec'%" ng the c%"" e" 2e;em0t !"om %n4 ' %+ ' t4 !o" &%m%ges n the e#ent o! ts %+so'ute "e!us%', n +%& !% th, to com0'4 $ th % cont"%ct o! c%"" %ge, $h ch s %+su"&2, 3e h%#e un !o"m'4 u0he'& the " ght o! % 0%ssenge" to &%m%ges n %'' c%ses $he"e n, %!te" h%# ng cont"%cte& %n& 0% & !o" ! "st c'%ss %ccommo&%t ons &u'4 con! "me& %n& #%' &%te&, he s t"%ns!e""e& o#e" h s o+?ect on to econom4, c'%ss, $h ch he h%s to t%5e n o"&e" to +e %+'e to %"" #e %t h s &est n%t on on h s sche&u'e& t meThe Cou"t &e' ne%te& ts "u' ngs n 0%st, s m '%" % "' ne c%sesCCENCA CASEH . Cuenc%, then Comm ss one" o! Pu+' c 7 gh$%4s o! the Ph ' 00 nes, he +o%"&e& % No"th$est 0'%ne n M%n '% $ th % ! "st c'%ss t c5et to To54o, +ut u0on %"" #%' %t O5 n%$%, %n %gent o! the com0%n4 "u&e'4 com0e''e& h m, o#e" h s 0"otest, to mo#e o#e" to the tou" st c'%ss, $h ch he h%& to &o, so he cou'& "e%ch the nte"n%t on%' con!e"ence he $%s %tten& ng on t me- Cn&e" these !%cts, the Cou"t he'& th%t the P20,000 %$%"&e& +4 the 'o$e" cou"t to Cuenc% 2m%4 $e'' +e cons &e"e& %s nom n%' %n& %'so %s e;em0'%"4, the Cou"t o! A00e%'s h%# ng mo& ! e& the t" %' cou"t:s &es gn%t on the"eo! %s mo"%', s%4 ng t shou'& h%#e +een nom n%'1OPEM CASEH 1o0e., then %n ncum+ent sen%to" %n& !o"me" B ce P"es &ent o! the Ph ' 00 nes, togethe" $ th h s $ !e %n& h s &%ughte" %n& son) n)'%$, m%&e ! "st c'%ss "ese"#%t ons $ th the P%n Ame" c%n 3o"'& A "$%4s n ts To54o)S%n 6"%nc sco !' ght- The "ese"#%t on h%# ng +een con! "me&, ! "st c'%ss t c5ets $e"e su+se9uent'4 ssue& n the " !%#o"M st%5en'4, ho$e#e", &e!en&%nt:s %gent c%nce''e& s% & "ese"#%t on, +ut e;0ect ng some c%nce''%t ons +e!o"e the !' ght sche&u'e& %+out % month '%te", the "ese"#%t ons su0e"# so" &ec &e& to $ thho'& the n!o"m%t on !"om them, $ th the "esu't th%t u0on %"" #%' n To54o, the 1o0e.es & sco#e"e& the4 h%& no ! "st c'%ss %ccommo&%t ons %n& $e"e thus com0e''e& to t%5e the tou" st c'%ss, ?ust so the sen%to" cou'& +e on t me !o" h s 0"ess ng eng%gements n the Cn te& St%tes- In the ' ght o! these !%cts, the Cou"t he'& the"e $%s % +"e%ch o! the cont"%ct o! c%"" %ge %n& # e$e& %s the e'ement o! +%& !% th ent t' ng the 0'% nt !!s to mo"%' &%m%ges !o" such cont"%ctu%' +"e%ch, the !% 'u"e o! the %gents o! the &e!en&%nt to n!o"m the 0'% nt !!s on t me th%t the " "ese"#%t on !o" ! "st c'%ss h%& 'ong +e!o"e +een c%nce''e& +4 m st%5e- Acco"& ng to the Cou"t, such om ss on 0'%ce& 0'% nt !!s n % 0"e& c%ment th%t en%+'e& the

42

TRANSPORTATION AND PUBLIC UTILITY LAW


1u!th%ns% em0'o4ee %t Rome h%# ng !%'se'4 note& on the t c5et th%t O"t g%s $%s t"%#e'' ng n econom4 !"om Rome to 7ong5ong, $%s "e0e%te& !ou" t mes n the s%me t" 0, n%me'4 n Rome, C% "o, Gh%"h%m %n& C%'cutt%- Mo"e m0o"t%nt'4, un' 5e n the c%se o! 1o0e., O"t g%s $%s su!!e" ng !"om % $e%5 he%"t %n& un&e" &octo":s %&# ce to t"%#e' on'4 n ! "st c'%ss, hence, h s +e ng com0e''e& to st%4 n econom4 o" tou" st c'%ss &u" ng the m%?o" 0%"t o! h s t" 0, must h%#e g #en h m %&&e& %00"ehens #e !ee' ngs %+out h s s%!et4- An&, mo"eo#e", t s to +enote& th%t n the 1o0e. c%se, $h ch $%s &ec &e& n 1E66, %s &e !"om t%5 ng nto %ccount the 0e"son%' c "cumst%nces o! the 0'% nt !!, the Cou"t cons &e"e& 2the 0"esent "%te o! e;ch%nge %n& the te"ms %t $h ch %mount o! &%m%ges %$%"&e& $ou'& %00"o; m%te'4 +e n C-S- &o''%"s2, hence, 3e m%4 not ?ust ! %+'4 &o & !!e"ent'4 he"e-Dispositi$e the ?u&gment %00e%'e& !"om s mo& ! e& +4 "% s ng the %$%"& o! mo"%' %n& e;em0'%"4 &%m%ges to 0'% nt !! O"t g%s to P1(0,000-00 %n& P100,000-00, "es0ect #e'4- In %'' othe" "es0ects, nc'u& ng %s to the 0%4ment o! nte"ests on the s% & %mounts, the s%me s %!! "me&-

-A2010-

PROF. RODRIGO LOPE QUIMBO


e# &ence& +4 % 'ette" o! PA1 to h m does not warrant a showing of malice on the .art of *A:1 Cn&e" the c "cumst%nces o+t% n ng, cons &e" ng th%t defendant's (.etitioner's) actuation was not attendant with bad faith , the %$%"& o! mo"%' &%m%ges n the %mount o! P40,000-00 s +ut ?ust %n& !% ",%& !% th must +e su+st%nt %te& +4 e# &ence- In :B- vs- -AH ,%& !% th un&e" the '%$ c%nnot +e 0"esume&; t must +e est%+' she& +4 c'e%" %n& con# nc ng e# &ence- Ag% n, the un+"o5en ?u" s0"u&ence s th%t n +"e%ch o! cont"%ct c%ses $he"e the &e!en&%nt s not sho$n to h%#e %cte& !"%u&u'ent'4 o" n +%& !% th, ' %+ ' t4 !o" &%m%ges s ' m te& to the n%tu"%' %n& 0"o+%+'e conse9uences o! the +"e%ch o! the o+' g%t on $h ch the 0%"t es h%& !o"eseen o" cou'& "e%son%+'4 h%#e !o"eseen- The damages, however, will not include liability for moral damages (C t%t ons om tte&) 3e c%n ne the" sust% n the %$%"& o! e;em0'%"4 &%m%ges- The 0"e"e9u s te !o" the %$%"& o! e;em0'%"4 &%m%ges n c%ses o! cont"%ct o" 9u%s )cont"%ct s th%t the &e!en&%nt %cte& n $%nton, !"%u&u'ent, "ec5'ess, o00"ess #e, o" m%'e#o'ent m%nne"- The un& s0ute& !%cts &o not so $%""%nt the ch%"%cte" .%t on o! the %ct on o! 0et t one"The %$%"& o! %tto"ne4:s !ees must %'so +e & s%''o$e& !o" '%c5 o! 'eg%' 'eg to st%n& on- The !%ct th%t 0" #%te "es0on&ent $%s com0e''e& to ' t g%te %n& ncu" e;0enses to 0"otect %n& en!o"ce h s c'% m & & not ?ust !4 the %$%"& o! %tto"ne4:s !ees- The gene"%' "u'e s th%t %tto"ne4:s !ees c%nnot +e "eco#e"e& %s 0%"t o! &%m%ges +ec%use o! the 0o' c4 th%t no 0"em um shou'& +e 0'%ce& on the " ght to ' t g%te- Pet t one" s $ '' ng to 0%4 the ?ust c'% m o! L200 %s % "esu't o! the &e'%4 n the t"%ns0o"t%t on o! the 'ugg%ge n %cco"& $ th the 3%"s%$ Con#ent on- Nee&'ess to s%4, the %$%"& o! %tto"ne4:s !ees must +e &e'ete& $he"e the %$%"& o! mo"%' %n& e;em0'%"4 &%m%ges %"e e' m n%te&Disposition IN BIE3 37EREO6, the %ss% 'e& Gec s on o! Du'4 2E, 1EE2 s MOGI6IEG &e'et ng the %$%"& o! mo"%' %n& e;em0'%"4 &%m%ges %n& %tto"ne4:s !ees- No costs-

conten&e& th%t ! %t %'' ' %+'e ts o+' g%t on s ' m te& +4 the 3%"s%$ Con#ent on "%te) PA1 ! 'e& % /"&)P%"t4 Com0'% nt %g% nst 1u!th%ns% *e"m%n A "' nes m0ut ng the m sh%n&' ng o! 0" #%te "es0on&ent:s +%gg%ge, +ut $%s & sm sse& !o" ts !% 'u"e to 0"osecute) In ts &ec s on, TC o+se"#e& th%t PA1:s %ctu%t on $%s not %tten&e& +4 +%& !% th- Ne#e"the'ess, t %$%"&e& M %no &%m%ges %n& %tto"ne4:s !ees, the & s0os t #e 0o"t on o! $h ch "e%&sH 37ERE6ORE, ?u&gment s he"e+4 "en&e"e& n !%#o" o! the 0'% nt !! (M %no) %n& %g% nst the &e!en&%nt (PA1), the"e+4 o"&e" ng the '%tte" to 0%4 the !o''o$ ngH (%) C-S- L200-00 %s cost o! t"%ns0o"t ng the su tc%se !"om B enn% to C.echos'o#%5 %; (+) P40,000-00 %s mo"%' &%m%ges; (c) P20,000-00 %s e;em0'%"4 &%m%ges; %n& (&) P1(,000-00 %s %tto"ne4:s !eesISSUEIS 1- 3ON the %$%"& o! &%m%ges %n& %tto"ne4=s !ees $%s 0"o0e" HELD 1- NO Ratio In +"e%ch o! cont"%ct o! c%"" %ge +4 % ", mo"%' &%m%ges %"e %$%"&e& on'4 ! the &e!en&%nt %cte& !"%u&u'ent'4 o" n +%& !% th- Bad faith me%ns % +"e%ch o! % 5no$n &ut4 th"ough s%me mot #e o! nte"est o" '' $ ''Reasoning The est%+' she& !%cts e# nce th%t 0et t one":s '%te &e' #e"4 o! the +%gg%ge !o" 11 &%4s $%s not mot #%te& +4 '' $ '' o" +%& !% th- In !%ct, t mme& %te'4 coo"& n%te& $ th ts Cent"%' ,%gg%ge Se"# ces to t"%ce M %no:s su tc%se %n& succee&e& n ! n& ng t- At the he%" ng, PA1:s M%n%ge" !o" A&m n st"%t on o! A "0o"t Se"# ces Ge0%"tment M gue' E+ o test ! e& th%t the " "eco"&s & sc'ose& th%t M%n '%, the o" g n%t ng st%t on, & & not "ece #e %n4 tracer tele/- A tracer tele/, %n % "' ne ' ngo, s %n %ct on o! %n4 st%t on th%t the % "' nes o0e"%te !"om $hom % 0%ssenge" m%4 com0'% n o" h%#e not "ece #e& h s +%gg%ge u0on h s %"" #%'- It $%s "e%son%+'e to 0"esume th%t the h%n&' ng o! the +%gg%ge $%s no"m%' %n& "egu'%"- C0on n9u "4 !"om the " 6"%n5!u"t St%t on, t $%s ho$e#e" & sco#e"e& th%t the nte"' ne t%g o! 0" #%te "es0on&ent:s +%gg%ge $%s %cc &ent%''4 t%5en o!!- Acco"& ng to M"- E+ o, t $%s custom%"4 !o" &est n%t on st%t ons to ho'& % t%g'ess +%gg%ge unt ' 0"o0e"'4 &ent ! e&The tracer tele/, $h ch cont% ne& n!o"m%t on on the +%gg%ge, s m%tche& $ th the t%g'ess 'ugg%ge !o" &ent ! c%t on- 3 thout the tracer tele/, the co'o" %n& the t40e o! +%gg%ge %"e use& %s +%s s !o" the m%tch ng- Thus, the &e'%43o"th4 to st"ess, the TC m%&e %n une9u #oc%' conc'us on th%t 0et t one" & & not %ct n +%& !% th o" $ th m%' ce, # .H Absent a finding as to the bad intention of defendant (.etitioner) *A: , th s cou"t ! n&s t %00"o0" %te to %00'4 the 3%"s%$ Con#ent on $ th "es0ect to the ' %+ ' t4 o! A " C%"" e"sThe me"e !%ct th%t PA1 e;e"te& e!!o"t to %ss st M %no n h s 0"e& c%ment %s sho$n n PA1=s 'ette" to h m %n& ' 5e$ se the 'ette" !"om E+ o to ts Sen o" Counse')1 t g%t on, Att4- M%"ce' %no C%' c% $h ch "e#e%'s the !%ct th%t %n n#est g%t on $%s con&ucte& %s to m sh%n&'e& +%gg%ge, cou0'e& $ th the !%ct th%t s% & n!o"m%t on $e"e then "e'%4e& to M %no %s

PAL V #IANO 242 SCRA 2/( PCNO; M%"ch A, 1EE( (+" %n +%u.%)
FACTS ) Aug /1, 1EAA )0" #%te "es0on&ent too5 0et t one":s !' ght PR <22, M%+uh%4 C'%ss, +oun& !o" 6"%n5!u"t, *e"m%n4- 7e h%& %n mme& %te on$%"& connect ng !' ght # % 1u!th%ns% !' ght 17 14(2 to B enn%, Aust" %At the N no4 A9u no Inte"n%t on%' A "0o"t, he chec5e&) n % +"o$n su tc%se $e gh ng 205g +ut & & not &ec'%"e % h ghe" #%'u%t on- 7e c'% me& th%t h s su tc%se cont% ne& mone4, &ocuments, % N 5on c%me"% $ th .oom 'ens, su ts, s$e%te"s, sh "ts, 0%nts, shoes, %n& othe" %ccesso" es) C0on M %no:s %"" #%' %t B enn% # % 1u!th%ns% !' ght 17 14(2, h s chec5e&) n +%gg%ge $%s m ss ng- 7e "e0o"te& the m%tte" to the 1u!th%ns% %utho" t es- A!te" / h"s o! $% t ng n #% n, he 0"ocee&e& to P est%n4, C.echos'o#%5 %) Se0 11, 1EAA )h s su tc%se $%s &e' #e"e& to h m n h s hote' n P est%n4- 7e c'% me& th%t +ec%use o! the &e'%4 n the &e' #e"4 o! h s su tc%se, he $%s !o"ce& to +o""o$ mone4 to +u4 some c'othes, to 0%4 L200-00 !o" the t"%ns0o"t%t on o! h s +%gg%ge !"om B enn% to P est%n4, %n& 'ost h s N 5on c%me"%) No# 1EAA )M %no $"ote to PA1 % 'ette" &em%n& ngH (1) P10P cost o! %''ege&'4 'ost N 5on c%me"%; (2) L200 !o" %''ege& cost o! t"%ns0o"t ng 'ugg%ge !"om B enn% to P est%n4; %n& (/) P100P %s &%m%ges- In ts "e0'4, PA1 n!o"me& M %no th%t h s 'ette" $%s !o"$%"&e& to ts 'eg%' &e0t !o" n#est g%t on) Res0on&ent !e't h s &em%n& 'ette" $%s 'e!t unhee&e&- 7e nst tute& %n %ct on !o" G%m%ges +e!o"e the M%5%t RTC) PA1 conteste& the com0'% nt- It & sc'% me& %n4 ' %+ ' t4 on the g"oun& th%t the"e $%s ne the" % "e0o"t o! m sh%n&'e& +%gg%ge on !' ght PR <22 no" % t"%ce" te'e; "ece #e& !"om ts B enn% St%t on- It, ho$e#e",

CATHA PACIFIC V VASKUEZ *-R- No- 1(0A4/ GABIGE; M%"ch 14, 200/ (4e''%)
FACTSB ) Res0on&ents)s0ouses G"- G%n e' E%"nsh%$ B%.9ue. %n& M%" % 1u s% M%&" g%' B%.9ue. %"e !"e9uent !'4e"s o! C%th%4 %n& %"e *o'& C%"& mem+e"s o! C%th%4=s M%"co Po'o C'u+- On 24 Se0tem+e" 1EE6, the B%.9ue.es, togethe" $ th the " m% & %n& t$o !" en&s P%c t% C"u. %n& Dose! n% Be"ge' &e G os, $ent to 7ong5ong !o" 0'e%su"e %n& +us ness) 6o" the " "etu"n !' ght to M%n '% on 2A Se0tem+e" 1EE6, the4 $e"e +oo5e& on C%th%4 s 6' ght CO)E0(, $ th &e0%"tu"e t me t$o hou"s +e!o"e the " &e0%"tu"e t me, the B%.9ue.es %n& the " com0%n ons chec5e& n the " 'ugg%ge %n& $e"e g #en the " "es0ect #e +o%"& ng 0%sses, to $ t, ,us ness C'%ss +o%"& ng 0%sses !o" the B%.9ue.es %n& the " t$o !" en&s, %n& Econom4 C'%ss !o" the " m% &-

43

TRANSPORTATION AND PUBLIC UTILITY LAW


) ) 3hen +o%"& ng t me $%s %nnounce&, the B%.9ue.es %n& the " t$o !" en&s $ent to Ge0%"tu"e *%te No- 2A, $h ch $%s &es gn%te& !o" ,us ness C'%ss 0%ssenge"sMs- Ch u %00"o%che& G"- B%.9ue. %n& to'& h m th%t the B%.9ue.es %ccommo&%t ons $e"e u0g"%&e& to 6 "st C'%ss- G"- B%.9ue. "e!use& the u0g"%&e- Ms- Ch u n!o"me& the '%tte" th%t ) the ,us ness C'%ss $%s !u''4 +oo5e&, %n& th%t s nce the4 $e"e M%"co Po'o C'u+ mem+e"s the4 h%& the 0" o" t4 to +e u0g"%&e& to the 6 "st C'%ss- G"- B%.9ue. cont nue& to "e!use, so Ms- Ch u to'& them th%t ! the4 $ou'& not %#% ' themse'#es o! the 0" # 'ege, the4 $ou'& not +e %''o$e& to t%5e the !' ght- E#entu%''4, %!te" t%'5 ng to h s t$o !" en&s, G"B%.9ue. g%#e n- 7e %n& M"s- B%.9ue. then 0"ocee&e& to the 6 "st C'%ss C%+ n) C0on the " "etu"n to M%n '%, the B%.9ue.es, n % 'ette" o! 2 Octo+e" 1EE6 %&&"esse& to C%th%4s Count"4 M%n%ge", &em%n&e& th%t the4 +e n&emn ! e& n the %mount o! P1m '' on !o" the 2hum ' %t on %n& em+%""%ssment2 c%use& +4 ts em0'o4ees- The4 %'so &em%n&e& 2% $" tten %0o'og4 !"om the m%n%gement o! C%th%4, 0"e!e"%+'4 % "es0ons +'e 0e"son $ th % "%n5 o! no 'ess th%n the Count"4 M%n%ge", %s $e'' %s the %0o'og4 !"om Ms- Ch u2 $ th n ! !teen &%4s !"om "ece 0t o! the 'ette") In h s "e0'4, M"- 1%""4 8uen, the %ss st%nt to C%th%4 s Count"4 M%n%ge" A"gus *u4 Ro+son, n!o"me& the B%.9ue.es th%t C%th%4 $ou'& n#est g%te the nc &ent %n& get +%c5 to them $ th n % $ee5s t me) A!te" C%th%4s !% 'u"e to g #e them %n4 !ee&+%c5 $ th n ts se'!) m0ose& &e%&' ne, the B%.9ue.es nst tute& +e!o"e the Reg on%' T" %' Cou"t o! M%5%t C t4 %n %ct on !o" &%m%ges %g% nst C%th%4 ) C%th%4 %sse"te& th%t ts em0'o4ees %t the 7ong Pong % "0o"t %cte& n goo& !% th n &e%' ng $ th the B%.9ue.es- Assum ng th%t the"e $%s n&ee& % +"e%ch o! cont"%ctu%' o+' g%t on, C%th%4 %cte& n goo& !% th, $h ch neg%tes %n4 +%s s !o" the " c'% m !o" tem0e"%te, mo"%', %n& e;em0'%"4 &%m%ges %n& %tto"ne4s !ees) Du&gment $%s "en&e"e& n !%#o" o! the B%s9ue.es ) On %00e%', the CA &e'ete& %$%"&s !o" e;em0'%"4 &%m%gesISSUESB 1- 3ON +4 u0g"%& ng the se%t %ccommo&%t on o! the B%.9ue.es !"om ,us ness C'%ss to 6 "st C'%ss C%th%4 +"e%che& ts cont"%ct o! c%"" %ge $ th the B%.9ue.es 2- 3ON the u0g"%& ng $%s t% nte& $ th !"%u& o" +%& !% th /- 3ON the B%.9ue.es %"e ent t'e& to MORA1 &%m%ges HELDB 18ES Breach of contract s &e! ne& %s the 2!% 'u"e $ thout 'eg%' "e%son to com0'4 $ th the te"ms o! % cont"%ct-2 It s %'so &e! ne& %s the 2!% 'u"e, $ thout 'eg%' e;cuse, to 0e"!o"m %n4 0"om se $h ch !o"ms the $ho'e o" 0%"t o! the cont"%ct-2 The B%.9ue.es shou'& h%#e +een consu'te& ! "st $hethe" the4 $%nte& to %#% ' themse'#es o! the 0" # 'ege o" $ou'& consent to % ch%nge o! se%t %ccommo&%t on +e!o"e the " se%t %ss gnments $e"e g #en to othe" 0%ssenge"s- No"m%''4, one $ou'& %00"ec %te %n& %cce0t %n u0g"%& ng,

-A2010-

PROF. RODRIGO LOPE QUIMBO


soc %' hum ' %t on, %n& s m '%" n?u"4- A'though nc%0%+'e o! 0ecun %"4 com0ut%t on, mo"%' &%m%ges m%4 +e "eco#e"e& ! the4 %"e the 0"o; m%te "esu't o! the &e!en&%nt s $"ong!u' %ct o" om ss on-11 Thus, c%se '%$ est%+' shes the !o''o$ ng "e9u s tes !o" the %$%"& o! mo"%' &%m%gesH (1) the"e must +e %n n?u"4 c'e%"'4 sust% ne& +4 the c'% m%nt, $hethe" 0h4s c%', ment%' o" 0s4cho'og c%'; (2) the"e must +e % cu'0%+'e %ct o" om ss on !%ctu%''4 est%+' she&; (/) the $"ong!u' %ct o" om ss on o! the &e!en&%nt s the 0"o; m%te c%use o! the n?u"4 sust% ne& +4 the c'% m%nt; %n& (4) the %$%"& !o" &%m%ges s 0"e& c%te& on %n4 o! the c%ses st%te& n A"t c'e 221E o! the C # ' Co&e Mo"%' &%m%ges 0"e& c%te& u0on % +"e%ch o! cont"%ct o! c%"" %ge m%4 on'4 +e "eco#e"%+'e n nst%nces $he"e the c%"" e" s gu 't4 o! !"%u& o" +%& !% th o" $he"e the m sh%0 "esu'te& n the &e%th o! % 0%ssenge"3he"e n +"e%ch ng the cont"%ct o! c%"" %ge the % "' ne s not sho$n to h%#e %cte& !"%u&u'ent'4 o" n +%& !% th, ' %+ ' t4 !o" &%m%ges s ' m te& to the n%tu"%' %n& 0"o+%+'e conse9uences o! the +"e%ch o! the o+' g%t on $h ch the 0%"t es h%& !o"eseen o" cou'& h%#e "e%son%+'4 !o"eseen- In such % c%se the ' %+ ' t4 &oes not nc'u&e 4. 898#P'AR:

!o" t $ou'& me%n % +ette" %ccommo&%t on- ,ut, $h%te#e" the " "e%son $%s %n& ho$e#e" o&& t m ght +e, the B%.9ue.es h%& e#e"4 " ght to &ec' ne the u0g"%&e %n& ns st on the ,us ness C'%ss %ccommo&%t on the4 h%& +oo5e& !o" %n& $h ch $%s &es gn%te& n the " +o%"& ng 0%sses- The4 c'e%"'4 $% #e& the " 0" o" t4 o" 0"e!e"ence $hen the4 %s5e& th%t othe" 0%ssenge"s +e g #en the u0g"%&e- It shou'& not h%#e +een m0ose& on them o#e" the " #ehement o+?ect on- ,4 ns st ng on the u0g"%&e, C%th%4 +"e%che& ts cont"%ct o! c%"" %ge $ th the B%.9ue.es 2NO &raud h%s +een &e! ne& to nc'u&e %n n&ucement th"ough ns & ous m%ch n%t on- Ins & ous m%ch n%t on "e!e"s to % &ece t!u' scheme o" 0'ot $ th %n e# ' o" &e# ous 0u"0ose- Gece t e; sts $he"e the 0%"t4, $ th ntent to &ece #e, conce%'s o" om ts to st%te m%te" %' !%cts %n&, +4 "e%son o! such om ss on o" conce%'ment, the othe" 0%"t4 $%s n&uce& to g #e consent th%t $ou'& not othe"$ se h%#e +een g #en- Bad faith &oes not s m0'4 connote +%& ?u&gment o" neg' gence; t m0o"ts % & shonest 0u"0ose o" some mo"%' o+' 9u t4 %n& consc ous &o ng o! % $"ong, % +"e%ch o! % 5no$n &ut4 th"ough some mot #e o" nte"est o" '' $ '' th%t 0%"t%5es o! the n%tu"e o! !"%u&The B%.9ue.es $e"e not n&uce& to %g"ee to the u0g"%& ng th"ough ns & ous $o"&s o" &ece t!u' m%ch n%t on o" th"ough $ ''!u' conce%'ment o! m%te" %' !%cts- Ne the" $%s the t"%ns!e" o! the B%.9ue.es e!!ecte& !o" some e# ' o" &e# ous 0u"0ose- As test ! e& to +4 M"- Ro+son, the 6 "st C'%ss Sect on s +ette" th%n the ,us ness C'%ss Sect on n te"ms o! com!o"t, 9u%' t4 o! !oo&, %n& se"# ce !"om the c%+ n c"e$; thus, the & !!e"ence n !%"e +et$een the 6 "st C'%ss %n& ,us ness C'%ss %t th%t t me $%s L2(0- Nee&'ess to st%te, %n u0g"%& ng s !o" the +ette" con& t on %n&, &e! n te'4, !o" the +ene! t o! the 0%ssenge"O#e"+oo5 ng o! the ,us ness C'%ss Sect on & & not const tute +%& !% th on the 0%"t o! C%th%4- Sect on / o! the Econom c Regu'%t on No- < o! the C # ' Ae"on%ut cs ,o%"&, %s %men&e&, 0"o# &esH Sec /- Sco.e- Th s "egu'%t on sh%'' %00'4 to e#e"4 Ph ' 00 ne %n& !o"e gn % " c%"" e" $ th "es0ect to ts o0e"%t on o! !' ghts o" 0o"t ons o! !' ghts o" g n%t ng !"om o" te"m n%t ng %t, o" se"# ng % 0o nt $ th n the te"" to"4 o! the Re0u+' c o! the Ph ' 00 nes nso!%" %s t &en es +o%"& ng to % 0%ssenge" on % !' ght, o" 0o"t on o! % !' ght ns &e o" outs &e the Ph ' 00 nes, !o" $h ch he ho'&s con! "me& "ese"#e& s0%ce- 6u"the"mo"e, th s Regu'%t on s &es gne& to co#e" on'4 honest m st%5es on the 0%"t o! the c%"" e"s %n& e;c'u&es &e' +e"%te %n& $ ''!u' %cts o! non) %ccommo&%t on- P"o# &e&, ho$e#e", th%t o#e"+oo5 ng not e;cee& ng 10Y o! the se%t ng c%0%c t4 o! the % "c"%!t sh%'' not +e cons &e"e& %s % &e' +e"%te %n& $ ''!u' %ct o! non)%ccommo&%t onIt s c'e%" !"om th s sect on th%t %n o#e"+oo5 ng th%t &oes not e;cee& ten 0e"cent s not cons &e"e& &e' +e"%te %n& the"e!o"e &oes not %mount to +%& !% th/NO A"t c'e 2220 o! the C # ' Co&e 0"o# &esH 3 ''!u' n?u"4 to 0"o0e"t4 m%4 +e % 'eg%' g"oun& !o" %$%"& ng mo"%' &%m%ges ! the cou"t shou'& ! n& th%t, un&e" the c "cumst%nces, such &%m%ges %"e ?ust'4 &ue- The s%me "u'e %00' es to +"e%ches o! cont"%ct $he"e the &e!en&%nt %cte& !"%u&u'ent'4 o" n +%& !% thMo"%' &%m%ges nc'u&e 0h4s c%' su!!e" ng, ment%' %ngu sh, !" ght, se" ous %n; et4, +esm "che& "e0ut%t on, $oun&e& !ee' ngs, mo"%' shoc5,

#ACENAS V CA 1A0 SCRA A/ 6e' c %no D; Gecem+e" 14, 1EAE (?%# )


FACTSB )Sh 0s KT%c'o+%n C t4> %n& the KGon Du%n> co'' &e& %t the T%'+%s St"% t ne%" M%est"% &e Oc%m0o Is'%n&, M n&o"o- 3hen the co'' s on occu""e&, the se% $%s c%'m, the $e%the" !% " %n& # s + ' t4 goo&- As % "esu't o! th s co'' s on, the MFB KGon Du%n> s%n5 %n& hun&"e&s o! ts 0%ssenge"s 0e" she&- Among the '')!%te& 0%ssenge"s $e"e the s0ouses Pe"!ecto Mecen%s %n& So! % Mecen%s, )the ch '&"en o! M%cen%s ! 'e& % com0'% nt n the then Cou"t o! 6 "st Inst%nce o! Nue.on C t4, %g% nst Neg"os N%# g%t on %n& C%0t- Roge" S%nt ste+%n, the c%0t% n o! the KGon Du%n> $ thout, ho$e#e", m0'e%& ng e the" PNOC o" PNOC Sh 00 ng- The ch '&"en 0"%4e& !o" %ctu%' &%m%ges o! not 'ess th%n P100,000-00 %s $e'' %s mo"%' %n& e;em0'%"4 &%m%ges )Anothe" com0'% nt $%s ! 'e& n the s%me cou"t +4 1 ' % C ocon c'% m ng &%m%ges %g% nst Neg"os N%# g%t on, PNOC %n& PNOC Sh 00 ng !o" the &e%th o! he" hus+%n& M%nue' C ocon, %nothe" o! the 0%ssenge"s o! the KGon Du%n-> The 2 c%ses $e"e conso' &%te& )t" %' cou"t "en&e"e& % &ec s on, o"&e" ng (%) Neg"os N%# g%t on %n& C%0t- S%nt ste+%n ?o nt'4 %n& se#e"%''4 ' %+'e to 0%4 the Mecen%s, the sum o! P400,000-00 !o" the &e%th o! the " 0%"ents; to 0%4 the Mecen%s the sum o! P1(,000-00 %s %n& !o" %tto"ne4=s !ees; 0'us costs o! the su t; (+) e%ch o! Neg"os N%# g%t on PNOCFPNOC Sh 00 ng to 0%4 C ocon the sum o! P100,000-00 !o" the &e%th o! M%nue' C ocon, to 0%4 C ocon ?o nt'4 %n& se#e"%''4, the sum o! P1(,000-00 %s %n& !o" %tto"ne4=s !ees, 0'us costs o! the su t- CA %!! "me& +ut "e&uce& &%m%ges !"om % 'um0 sum o! 400,000 to ?ust 100,00- M%cen%s 9uest one& the "e&uct on o! &%m%ges-

44

TRANSPORTATION AND PUBLIC UTILITY LAW


ISSUEB 3ON CA e""e& n "e&uc ng %mount HELD 8ESH @% & scuss on on %$%"& ng e;em0'%"4 &%m%ges )In "es0ect o! the 0et t one"s: c'% m !o" e;em0'%"4 &%m%ges, t s on'4 necess%"4 to "e!e" to A"t c'e 22/2 o! the C # ' Co&e- $hethe" 0et t one"s %"e ent t'e& to e;em0'%"4 &%m%ges %s c'% me& must &e0en& u0on $hethe" o" not 0" #%te "es0on&ents %cte& "ec5'ess'4, th%t s, $ th g"oss neg' gence ))H I <on Guan and Tacloban -ity +ec%me %$%"e o! e%ch othe":s 0"esence n the %"e% +4 # su%' cont%ct %t % & st%nce o! someth ng ' 5e 6 m 'es !"om e%ch othe"- They were fully aware that if they continued on their course, they will meet head on - Gon Du%n ) stee"e& to the " ght; T%c'o+%n C t4 cont nue& ts cou"se to the 'e!t- The"e c%n +e no e;cuse !o" them not to "e%' .e th%t, $ th such m%neu#e"s, the4 $ '' co'' &e- The4 e;ecute& m%neu#e"s n%&e9u%te, %n& too '%te, to %#o & co'' s on )The g"ossness o! the neg' gence o! the 2Gon Du%n2 s un&e"sco"e& $hen one cons &e"s the !o"ego ng c "cumst%nces n the conte;t o! the !o''o$ ng !%ctsH 6 "st'4, the 2Gon Du%n2 $%s mo"e th%n t$ ce %s !%st %s the 2T%c'o+%n C t4-2 The 2Gon Du%n:s2 to0 s0ee& $%s 1< 5nots; $h 'e th%t o! the 2T%c'o+%n C t42 $%s 6-/- 5nots-Secon&'4, the 2Gon Du%n2 c%"" e& the !u'' com0'ement o! o!! ce"s %n& c"e$ mem+e"s s0ec ! e& !o" % 0%ssenge" #esse' o! he" c'%ss- Th "&'4, the 2Gon Du%n2 $%s e9u 00e& $ th "%&%" $h ch $%s !unct on ng th%t n ght- 6ou"th'4, the 2Gon Du%n:s2 o!! ce" on)$%tch h%& s ghte& the 2T%c'o+%n C t42 on h s "%&%" sc"een $h 'e the '%tte" $%s st '' !ou" (4) n%ut c%' m 'es %$%4 @on the "e&uct on &one +4 the CA o! &%m%ges )CA "e&uce& the &%m%ges !"om % 'um0 sum o! 400,000 to 100,000 +%se& on )anchester <evelo.ment -or.oration I1 -ourt of A..eals(the"e $%s no & scuss on "eg%"& ng th s c%se))SC ho$e#e" st%te& th%t )anchester $%s 0"omu'g%te& +4 the Cou"t on < M%4 1EA<- C "cu'%" No- < o! th s Cou"t, $h ch em+o& e& the &oct" ne n )anchester, s &%te& 24 M%"ch 1EAA- the c%se on h%n& $%s ! 'e& Gecem+e" 2E, 1EA0- Gec s on o! the t" %' cou"t $%s %'so 0"omu'g%te& (Gecem+e" 1E, 1EA6) +e!o"e M%ncheste"@on the %mount o! the &%m%ges %$%"&e& ) The o" g n%' %$%"& o! the t" %' cou"t o! P400,000-00[H 1)%ctu%' o" com0ens%to"4 &%m%ges 0"o#e& n the cou"se o! t" %' cons st ng o! (%ctu%' e;0enses ncu""e& +4 0et t one"s n the " se%"ch !o" the " 0%"ents: +o& es) P126,000-00 2)%ctu%' o" com0ens%to"4 &%m%ges ( n c%se o! $"ong!u' &e%th) (P/0,000-00 ; 2) )P60,000-00 /) mo"%' &%m%ges )P10<,000-00 4) e;em0'%"4 &%m%ges )P10<,000-00 Tot%' )P400,000-00 )SC nc"e%se& %mount o! mo"%' &%m%ges st%t ngH KCons &e" ng th%t 0et t one"s, 'eg t m%te ch '&"en o! the &ece%se& s0ouses Mecen%s, %"e se#en (<) n num+e" %n& th%t the4 'ost +oth !%the" %n& mothe n one !e'' +'o$ o! !%te, %n& cons &e" ng the 0% n %n& %n; et4 the4 &ou+t'ess e;0e" ence& $h 'e se%"ch ng !o" the " 0%"ents %mong the su"# #o"s %n& the co"0ses

-A2010-

PROF. RODRIGO LOPE QUIMBO


mo# ng, some o! the 0%ssenge"s $e"e +e ng esco"te& %he%& o! the ' ne n o"&e" to +e chec5e&) nISSUE/S 1- 3ON 0et t one" s ' %+'e !o" +"e%ch o! cont"%ct 2- 3ON S0s Du' %nos %"e ent t'e& to "e!un& !o" the 0u"ch%se o! Th% A "$%4s t c5ets (&ue to the +"e%ch +4 A' t%' % A "$%4s) HELD 1- 8ES Ratio 3hen %n % "' ne ssues % t c5et to % 0%ssenge" con! "me& on % 0%"t cu'%" !' ght, on % ce"t% n &%te, % cont"%ct o! c%"" %ge %" ses, %n& the 0%ssenge" h%s e#e"4 " ght to e;0ect th%t he $ou'& !'4 on th%t !' ght %n& on th%t &%te- I! he &oes not, then the c%"" e" o0ens tse'! to % su t !o" +"e%ch o! cont"%ct o! c%"" %geReasoning The 2- 8ES ) 1o$e" Cou"t "u'e& th%tH The 0u"ch%se o! t c5ets on Th% A "$%4s $%s +4 c%'cu'%te& cho ce, not +4 necess t4- Th s +e ng the c%se, s nce the Du' %nos cou'& h%#e !'o$n A' t%' % ?ust the s%me the"e +e ng no com0e'' ng necess t4 %n4mo"e !o" them to !'4 the s%me &%4, the4 %"e not ent t'e& to % "e!un& o! the cost o! the " Th% t c5ets) 3hen % 0%ssenge" cont"%cts !o" % s0ec ! c !' ght he h%s % 0u"0ose n m%5 ng th%t cho ce $h ch must +e "es0ecte&- Th s cho ce, once e;e"c se&, must not +e m0% "e& +4 % +"e%ch on the 0%"t o! the % "' ne $ thout the '%tte" ncu"" ng %n4 ' %+ ' t4- ,es &es, $h4 shou'& the Du' %nos +e com0e''e& to $% t !o" %nothe" A' t%' % t ght to " s5 % s m '%" "e+u!! %n& su!!e" the conse9uent !u"the" &e'%4V ) 3h%t s 0'% n to see s th%t the % "' ne h%& &e' +e"%te'4 o#e"+oo5e& %n& n &o ng so too5 the " s5 o! h%# ng to &e0" #e some 0%ssenge"s o! the " se%ts n c%se %'' o! them $ou'& sho$ u0 !o" chec5) n<< ! dunno /%ere 2ominal Temperate and 'i.uidated Damages "ome in. Disposition CA &ec s on MOGI6IEG-

"eco#e"e& !"om the se% o" $%she& %sho"e, $e +e' e#e th%t %n %&& t on%' %mount o! P200,000-00 !o" mo"%' &%m%ges, m%5 ng % tot%' o! P/0<,000-00 !o" mo"%' &%m%ges )SC nc"e%se& %mount o! e;em0'%"4 &%m%ges st%t ngH KE;em0'%"4 &%m%ges %"e &es gne& +4 ou" c # ' '%$ to 0e"m t the cou"ts to "esh%0e +eh%# ou" th%t s soc %''4 &e'ete" ous n ts conse9uence +4 c"e%t ng neg%t #e ncent #es o" &ete""ents %g% nst such +eh%#ou"- The Cou"t $ '' t%5e ?u& c %' not ce o! the &"e%&!u' "egu'%" t4 $ th $h ch g" e#ous m%" t me & s%ste"s occu" n ou" $%te"s $ th m%ss #e 'oss o! ' !e- The +u'5 o! ou" 0o0u'%t on s too 0oo" to %!!o"& &omest c % " t"%ns0o"t%t on- So t s th%t not$ thst%n& ng the !"e9uent s n5 ng o! 0%ssenge" #esse's n ou" $%te"s, c"o$&s o! 0eo0'e cont nue to t"%#e' +4 se%- Th s Cou"t s 0"e0%"e& to use the nst"uments g #en to t +4 the '%$ !o" secu" ng the en&s o! '%$ %n& 0u+' c 0o' c4- One o! those nst"uments s the nst tut on o! e;em0'%"4 &%m%ges; one o! those en&s, o! s0ec %' m0o"t%nce n %n %"ch 0e'%g c st%te ' 5e the Ph ' 00 nes, s the s%!e %n& "e' %+'e c%"" %ge o! 0eo0'e %n& goo&s +4 se%- Cons &e" ng the !o"ego ng, $e +e' e#e th%t %n %&& t on%' %$%"& n the %mount o! P200,000-00 %s e;em0'%"4 &%m%ges, s 9u te mo&est 5. 26#!2A'+ T8#P8RAT8 A2D '!;0!DAT8D

ALITALIA AIR&A S V CA ,CULIANO" 1E2 SCRA E SARMIENTO; Gecem+e" 4, 1EE0 ("e%n)


NATURE Pet t on !o" "e# e$ on ce"t o"%" FACTS ) S0s Du' %no %"" #e& %t the 6um c no A "0o"t n Rome, It%'4 n o"&e" to +o%"& 6' ght AM 1<<4 o! A' t%' % A "$%4s sche&u'e& to &e0%"t %t 10H/0 %-m- !o" 7ong5ong- ,ut 6' ght AM 1<<4 'e!t Rome $ thout the Du' %nos3hen Du' %no %"" #e& n M%n '%, he "etu"ne& to h s em0'o4e" ," sto') M4e"s, Inc-, o! $h ch he $%s BP O0e"%t ons, the unuse& Rome) 7ong5ong 'eg o! the A' t%' % t c5et- 7o$e#e", the cost o! the Th% A "$%4s t c5ets the4 h%& to 0u"ch%se n ' eu o! A' t%' % $%s not "e!un&e& +4 h s o!! ce) So, Du' %nos ! 'e& % com0'% nt $ th the RTC o! NC %g% nst the A' t%' % A "$%4s !o" &%m%ges !"om the %''ege& +"e%ch o! ts cont"%ctu%' o+' g%t ons $hen the A' t%' % !% 'e& to t"%ns0o"t them to 7P on the A' t%' % 6' ght AM 1<<4- The c%use o! Du' %nos= non)+o%"& ng s the +one o! cont"o#e"s4 he"eD A' t%' % c'% ms th%t +o%"& ng t me $%s EH/0 %-m !o" 6' ght AM 1<<4- S0s Du' %nos !% 'e& to chec5) n on t me %n& $e"e m%"5e& %s NO S7O3The"e%!te", ch%nce 0%ssenge"s, o" those $ thout con! "me& "ese"#%t ons, $e"e %''o$e& to +o%"&) On the othe" h%n&, the Du' %nos c'% m th%t the4 %"" #e& %t the % "0o"t %t %"oun& EH1( %-m- ,ut the 9ueue $%s 'ong !o" the chec5) n +ec%use the"e $e"e no n& # &u%' counte"s s0ec ! c%''4 !o" A' t%' % 0%ssenge"sThe4 %00"o%che& the counte" t$ ce +ut the4, togethe" $ th %nothe" 6 ' 0 no, Ms- Est%n s'%o, $e"e +"ushe& %s &e- 3o"se, %''ege&'4 +eg%n to & sc" m n%te- The Du' %nos not ce& th%t &es0 te th%t the " ' ne $%s not

SALUDO VS CA *-R- No- E((/6 Reg%'%&o; M%"ch 2/, 1EE2 ( ce)


N%tu"e Pet t on !o" "e# e$ on ce"t o"%" 6%cts The S%'u&o=s mothe" & e& n Ch c%go, I'' no s- Pom e"s5 , the !une"%' home h%& the "em% ns em+%'me& %n& secu"e& % 0e"m t !o" the & s0os t on o! &e%& hum%n +o&4- Pom e"s5 +"ought the "em% ns to C-M-A-S- (Cont nent%' Mo"tu%"4 A " Se"# ces) %t the % "0o"t (Ch c%go) $h ch m%&e the necess%"4 %""%ngements such %s !' ghts, t"%ns!e"s, etc-; C-M-A-S- s % n%t on%' se"# ce use& +4 un&e"t%5e"s th"oughout the n%t on (C-S-A-), the4 !u"n sh the % " 0ouch $h ch the c%s5et s enc'ose&

45

TRANSPORTATION AND PUBLIC UTILITY LAW


n, %n& the4 see th%t the "em% ns %"e t%5en to the 0"o0e" % " !"e ght te"m n%'- C-M-A-S- +oo5e& the sh 0ment $ th PA1 th"u the c%"" e":s %gent A " C%"e Inte"n%t on%', $ th Pom e"s5 6-7- %s the sh 00e" %n& M%" o (M%" %) S%'u&o %s the cons gnee- PA1 A "$%4 , '' No- 0<E) 011A04(4 O"& n%"4 $%s ssue& $he"e n the "e9ueste& "out ng $%s !"om Ch c%go to S%n 6"%nc sco on +o%"& T3A 6' ght 1/1 %n& !"om S%n 6"%nc sco to M%n '% on +o%"& PA1 6' ght No- 10< o! the s%me &%te, %n& !"om M%n '% to Ce+u on +o%"& PA1 6' ght 14EM%" % S%'#%c on S%'u&o %n& S%tu"n no S%'u&o %"" #e& n C%' !o"n % +ut the "em% ns o! the " mothe" $%s m ss ng- C0on %"" #%' %t S%n 6"%nc sco she $ent to the T3A counte" the"e to n9u "e %+out he" mothe":s "em% ns- She $%s to'& the4 & & not 5no$ %n4th ng %+out t- The "em% ns (o! C" s0 n% S%'u&o) $e"e t%5en to CMAS %t the % "0o"t; the"e $e"e t$o +o& es %t the (Ch c%go A "0o"t) te"m n%', %n& someho$ the4 $e"e s$ tche&, the "em% ns (o! C" s0 n% S%'u&o) $e"e on % 0'%ne to Me; co C t4The sh 0ment o" "em% ns o! C" s0 n% S%'u&o %"" #e& ( n) S%n 6"%nc sco !"om Me; co on +o%"& Ame" c%n A "' nes- Th s sh 0ment $%s t"%ns!e""e& to o" "ece #e& +4 PA1 %t 1E4(7 o" <H4( 0-m-- Th s c%s5et +e%" ng the "em% ns o! C" s0 n% S%'u&o, $h ch $%s m st%5en'4 sent to Me; co %n& $%s o0ene& (the"e), $%s "ese%'e& +4 C" s0 n 6- P%&%g%s !o" sh 0ment to the Ph ' 00 nes- The sh 0ment $%s mme& %te'4 'o%&e& on PA1 !' ght !o" M%n '% th%t s%me e#en ng %n& %"" #e& ( n) M%n '% on Octo+e" /0, 1E<6, % &%4 %!te" ts e;0ecte& %"" #%')G%m%ge su t $%s ! 'e& +4 0et t one"s +e!o"e the then Cou"t o! 6 "st Inst%nce, ,"%nch III, 1e4te, 0"%4 ng !o" the %$%"& o! %ctu%' &%m%ges o! P(0,000-00, mo"%' &%m%ges o! P1,000,000-00, e;em0'%"4 &%m%ges, %tto"ne4:s !ees %n& costs o! su tISSCE 1- 3ON 0" #%te "es0on&ents %"e not ' %+'e !o" to"t on %ccount o! the hum ' %t ng, %""og%nt %n& n& !!e"ent %cts o! the " o!! ce"s %n& 0e"sonne'2- 3ON %s % conse9uence o! the &e'%4 n the sh 0ment o! the " mothe":s "em% ns %''ege&'4 c%use& +4 $ ''!u' cont"%ctu%' +"e%ch, on the " ent t'ement to %ctu%', mo"%' %n& e;em0'%"4 &%m%ges %s $e'' %s %tto"ne4:s !ees, ' t g%t on e;0enses, %n& 'eg%' nte"est7E1G 1- No- It &oes not sho$ %n4 hum ' %t ng o" %""og%nt m%nne" $ th $h ch the 0e"sonne' o! +oth &e!en&%nts t"e%te& the t$o 0'% nt !!s- E#en the " %''ege& n& !!e"ence s not c'e%"'4 est%+' she&- The n t %' %ns$e" o! the T3A 0e"sonne' %t the counte" th%t the4 & & not 5no$ %n4th ng %+out the "em% ns, %n& '%te", the " %ns$e" th%t the4 h%#e not he%"& %n4th ng %+out the "em% ns, %n& the n%+ ' t4 o! the T3A counte" 0e"sonne' to n!o"m the t$o 0'% nt !!s o! the $he"e%+outs o! the "em% ns, c%nnot +e s% & to +e tot%' o" com0'ete n& !!e"ence to the s% & 0'% nt !!s- At %n4 "%te, t s %n4 "u&e o" & scou"teous con&uct, m%'!e%s%nce o" neg'ect, the use o! %+us #e o" nsu't ng '%ngu%ge c%'cu'%te& to hum ' %te %n& sh%me 0%ssenge" o" +%& !% th +4 o" on the 0%"t o! the em0'o4ees o! the c%"" e" th%t g #es the 0%ssenge" %n %ct on !o" &%m%ges %g% nst the c%"" e" (Mu'uet% #s- P%n Ame" c%n 3o"'& A "$%4s, 4/ SCRA /E<; A " 6"%nce #sC%""%scoso, et %'-, 1A SCRA 1((; 1o0e., et %'- #s- P%n Ame" c%n 3o"'& A "$%4s, 16 SCRA 4/1; No"th$est A "' nes, Inc- #s- Cuenc%, 14 SCRA 106/), %n& none o! the %+o#e s o+t% n ng n the nst%nt c%se-

-A2010-

PROF. RODRIGO LOPE QUIMBO


o! &%m%ges +e ng 'e!t to the & sc"et on o! the cou"t %cco"& ng to the c "cumst%nces o! the c%seDisposition G%m%ges s he"e+4 g"%nte& n !%#o" o! 0et t one"s to +e 0% & +4 "es0on&ent T"%ns 3o"'& A "' nes, the %00e%'e& &ec s on s A66IRMEG n %'' othe" "es0ects-

The m%nne" n $h ch 0" #%te "es0on&ent T3A:s em0'o4ees &e%'t $ th 0et t one"s $%s not g"oss'4 hum ' %t ng, %""og%nt o" n& !!e"ent %s $ou'& %ssume the 0"o0o"t ons o! m%' ce o" +%& !% th %n& '%4 the +%s s !o" %n %$%"& o! the &%m%ges c'% me&- It must ho$e#e", +e 0o nte& out th%t the '%ment%+'e %ctu%t ons o! "es0on&ent T3A:s em0'o4ees 'e%#e much to +e &es "e&, 0%"t cu'%"'4 so n the !%ce o! 0et t one"s: g" e! o#e" the &e%th o! the " mothe", e;%ce"+%te& +4 the tens on %n& %n; et4 $"ought +4 the m0%sse %n& con!us on o#e" the !% 'u"e to %sce"t% n o#e" %n %00"ec %+'e 0e" o& o! t me $h%t h%00ene& to he" "em% ns- A "' ne com0%n es %"e ste"n'4 %&mon she& th%t t s the " &ut4 not on'4 to cu"so" '4 nst"uct +ut to st" ct'4 "e9u "e the " 0e"sonne' to +e mo"e %ccommo&%t ng to$%"&s custome"s, 0%ssenge"s %n& the gene"%' 0u+' c- A!te" %'', common c%"" e"s such %s % "' ne com0%n es %"e n the +us ness o! "en&e" ng 0u+' c se"# ce, $h ch s the 0" m%"4 "e%son !o" the " en!"%nch sement %n& "ecogn t on n ou" '%$- ,ec%use the 0%ssenge"s n % cont"%ct o! c%"" %ge &o not cont"%ct me"e'4 !o" t"%ns0o"t%t on, the4 h%#e % " ght to +e t"e%te& $ th 5 n&ness, "es0ect, cou"tes4 %n& cons &e"%t on- A cont"%ct to t"%ns0o"t 0%ssenge"s s 9u te & !!e"ent n 5 n& %n& &eg"ee !"om %n4 othe" cont"%ctu%' "e'%t on, %n& gene"%tes % "e'%t on %tten&e& $ th 0u+' c &ut4- The o0e"%t on o! % common c%"" e" s % +us ness %!!ecte& $ th 0u+' c nte"est %n& must +e & "ecte& to se"#e the com!o"t %n& con#en ence o! 0%ssenge"s- P%ssenge"s %"e hum%n +e ngs $ th hum%n !ee' ngs %n& emot ons; the4 shou'& not +e t"e%te& %s me"e num+e"s o" st%t st cs !o" "e#enueNo %tt" +ut on o! & scou"tes4 o" n& !!e"ence h%s +een m%&e %g% nst PA1 +4 0et t one"s %n&, n !%ct, 0et t one" M%" % S%'u&o test ! e& th%t t $%s to PA1 th%t the4 "e0% "e& %!te" !% ' ng to "ece #e 0"o0e" %ttent on !"om T3A- It $%s !"om PA1 th%t the4 "ece #e& con! "m%t on th%t the " mothe":s "em% ns $ou'& +e on the s%me !' ght to M%n '% $ th them2- No !o" %ctu%', mo"%' %n& e;em0'%"4 &%m%ges +ut 4es !o" nom n%' &%m%ges- The un !o"m &ec s on%' tenet n ou" ?u" s& ct on ho'&s th%t mo"%' &%m%ges m%4 +e %$%"&e& !o" $ ''!u' o" !"%u&u'ent +"e%ch o! cont"%ct o" $hen such +"e%ch s %tten&e& +4 m%' ce o" +%& !% th7o$e#e", n the %+sence o! st"ong %n& 0os t #e e# &ence o! !"%u&, m%' ce o" +%& !% th, s% & &%m%ges c%nnot +e %$%"&e&- Ne the" c%n, the"e +e %n %$%"& o! e;em0'%"4 &%m%ges no" o! %tto"ne4:s !ees %s %n tem o! &%m%ges n the %+sence o! 0"oo! th%t &e!en&%nt %cte& $ th m%' ce, !"%u& o" +%& !% thThe censu"%+'e con&uct o! T3A:s em0'o4ees c%nnot, ho$e#e", +e s% & to h%#e %00"o; m%te& the & mens ons o! !"%u&, m%' ce o" +%& !% th- It c%n +e s% & to +e mo"e o! % 'eth%"g c "e%ct on 0"o&uce& %n& eng"% ne& n some 0eo0'e +4 the mech%n c%''4 "out ne n%tu"e o! the " $o"5 %n& % "%c %' o" soc et%' cu'tu"e $h ch stu't ! es $h%t $ou'& h%#e +een the " %ccustome& hum%n "es0onse to % hum%n nee& un&e" % !o"me" %n& & !!e"ent %m+ enceNonethe'ess, the !%cts sho$ th%t 0et t one"s: " ght to +e t"e%te& $ th &ue cou"tes4 n %cco"&%nce $ th the &eg"ee o! & ' gence "e9u "e& +4 '%$ to +e e;e"c se& +4 e#e"4 common c%"" e" $%s # o'%te& +4 T3A %n& th s ent t'es them, %t 'e%st, to nom n%' &%m%ges !"om T3A %'one- A"t c'es 2221 %n& 2222 o! the C # ' Co&e m%5e t c'e%" th%t nom n%' &%m%ges %"e not nten&e& !o" n&emn ! c%t on o! 'oss su!!e"e& +ut !o" the # n& c%t on o" "ecogn t on o! % " ght # o'%te& o" n#%&e&- The4 %"e "eco#e"%+'e $he"e some n?u"4 h%s +een &one +ut the %mount o! $h ch the e# &ence !% 's to sho$, the %ssessment

CAPAN AIRLINES V CA ,AGANA, AGANA, FRANCISCO, #IRANDA" 2E4 SCRA 1E ROMERO; August <, 1EEA (monch)
NATURE S0ec %' c # ' %ct on o! ce"t o"%" FACTS ) On Dune 1/, 1EE1, M "%n&% +o%"&e& DA1 n S%n 6"%nc sco +oun& !o" M%n '%- The Ag%n%s %n& 6"%nc sco +o%"&e& DA1 n 1os Ange'es +oun& !o" M%n '%- As %n ncent #e !o" t"%#e'' ng on the s% & % "' ne, +oth !' ghts $e"e to m%5e %n o#e"n ght sto0o#e" %t N%" t%, D%0%n, %t the % "' nes= e;0ense, the"e%!te" 0"ocee& ng to M%n '% the !o''o$ ng &%4- C0on %"" #%' n N%" t%, the4 $e"e + ''ete& n 7ote' N 55o- The ne;t &%4, the4 $ent to the % "0o"t to !'4 to M%n '%- ,ut the " t" 0 $%s n&e! n te'4 c%nce''e& +ec%use o! the P n%tu+o e"u0t on- Ash!%'' +'%n5ete& N no4 A9u no Inte"n%t on%' A "0o"t (NAIA), "en&e" ng t n%ccess +'e to % "' ne t"%!! c) DA1 "e+oo5e& %'' 0%ssenge"s on %nothe" !' ght &ue to &e0%"t on Dune 16 %n& 0% & !o" %'' the o#e"n ght e;0enses o! the 0%ssenge"s- On Dune 16, the !' ght $%s c%nce''e& %g% n- DA1 n!o"me& the "es0on&ents th%t the4 cou'& no 'onge" &e!"%4 the hote' e;0enses) The "es0on&ents $e"e !o"ce& to 0%4 the " e;0enses !"om Dune 16)21The4 $e"e on'4 %+'e to 'e%#e on Dune 22) Res0on&ents ! 'e& %n %ct on !o" &%m%ges n the RTC- The4 %#e" th%t DA1 shou'& h%#e shou'&e"e& the " e;0enses- DA1=s &e!ense $%s !o"ce m%?eu"e- The RTC "u'e& n !%#o" o! the "es0on&ents- The CA %!! "me&ISSUEIS 1- 3ON DA1 shou'& shou'&e" the e;0enses HELD 1- NO Reasoning The"e s no 9uest on th%t $hen % 0%"t4 s un%+'e to !u'! '' h s o+' g%t on +ec%use o! K!o"ce m%?eu"e,> the gene"%' "u'e s th%t he c%nnot +e he'& ' %+'e !o" &%m%ges !o" non)0e"!o"m%nce-Co"o''%" '4, $hen DA1

46

TRANSPORTATION AND PUBLIC UTILITY LAW


$%s 0"e#ente& !"om "esum ng ts !' ght to M%n '% &ue to the e!!ects o! MtP n%tu+o e"u0t on, $h%te#e" 'osses o" &%m%ges n the !o"m o! hote' %n& me%' e;0enses the st"%n&e& 0%ssenge"s ncu""e&, c%nnot +e ch%"ge& to DA1) The CA "e' e& on PA1 # CA n the " &ec s on- The "e' %nce s m s0'%ce&- The !%ctu%' +%c5g"oun& o! the PA1 c%se s & !!e"ent !"om the nst%nt 0et t on- In th%t c%se the"e $%s n&ee& % !o"tu tous e#ent "esu't ng n the & #e"s on o! the PA1 !' ght- 7o$e#e", the un!o"eseen & #e"s on $%s $o"sene& $hen K0" #%te "es0on&ents (0%ssenge") $%s 'e!t %t the % "0o"t %n& cou'& not e#en h tch % " &e n % 6o"& 6 e"% 'o%&e& $ th PA1 0e"sonne',> not to ment on the %00%"ent %0%th4 o! the PA1 st%t on m%n%ge" %s to the 0"e& c%ment o! the st"%n&e& 0%ssenge"s-In ' ght o! these c "cumst%nces, $e he'& th%t ! the !o"tu tous e#ent $%s %ccom0%n e& +4 neg'ect %n& m%'!e%s%nce +4 the c%"" e"=s em0'o4ees, %n %ct on !o" &%m%ges %g% nst the c%"" e" s 0e"m ss +'e- Cn!o"tun%te'4, !o" 0" #%te "es0on&ents, none o! these con& t ons %"e 0"esent n the nst%nt 0et t on ) DA1 s, ho$e#e", not !"ee !"om ' %+ ' t4- It must +e note& th%t 0" #%te "es0on&ents +ought t c5ets !"om the Cn te& St%tes $ th M%n '% %s the " ! n%' &est n%t on- 3h 'e DA1 $%s no 'onge" "e9u "e& to &e!"%4 0" #%te "es0on&ents= ' # ng e;0enses &u" ng the " st%4 n N%" t% on %ccount o! the !o"tu tous e#ent, DA1 h%& the &ut4 to m%5e the necess%"4 %""%ngements to t"%ns0o"t 0" #%te "es0on&ents on the ! "st %#% '%+'e connect ng !' ght to M%n '%- Pet t one" DA1 "enege& on ts o+' g%t on to 'oo5 %!te" the com!o"t %n& con#en ence o! ts 0%ssenge"s $hen t &ec'%ss ! e& 0" #%te "es0on&ents !"om Kt"%ns t 0%ssenge"s> to Kne$ 0%ssenge"s> %s % "esu't o! $h ch 0" #%te "es0on&ents $e"e o+' ge& to m%5e the necess%"4 %""%ngements themse'#es !o" the ne;t !' ght to M%n '%- P" #%te "es0on&ents $e"e 0'%ce& on the $% t ng ' st !"om Dune 20 to Dune 24- To %ssu"e themse'#es o! % se%t on %n %#% '%+'e !' ght, the4 $e"e com0e''e& to st%4 n the % "0o"t the $ho'e &%4 o! Dune 22, 1EE1 %n& t $%s on'4 %t AH00 0-m- o! the %!o"es% & &%te th%t the4 $e"e %&# se& th%t the4 cou'& +e %ccommo&%te& n s% & !' ght $h ch !'e$ %t %+out EH00 %-m- the ne;t &%4 Disposition Gec s on mo& ! e&- Actu%', mo"%' %n& e;em0'%"4 &%m%ges %"e &e'ete&- DA1 o"&e"e& to 0%4 1005 nom n%' &m%ges %n& (05 %tt4 !ees

-A2010-

PROF. RODRIGO LOPE QUIMBO


1- 3ON the"e $%s +"e%ch o! the cont"%ct o! c%"" %ge 2- 3ON 0et t one"s %"e ent t'e& to &%m%ges HELDB 1- 8ES- Ratio 3hen, %s % "esu't o! eng ne m%'!unct on, % comme"c %' % "' ne s un%+'e to !e""4 ts 0%ssenge"s on the o" g n%' cont"%cte& "oute, t nonethe'ess h%s the &ut4 o! !u'! '' ng ts "es0ons + ' t4 o! c%""4 ng them to the " cont"%cte& &est n%t on on the most con#en ent "oute 0oss +'e6% ' ng n th s, t c%nnot ?ust un '%te"%''4 shutt'e them, $ thout the " consent, to othe" "outes o" sto00 ng 0'%ces outs &e o! the cont"%cte& secto"sReasoning The %g"eement 0" nte& on the % "' ne t c5et st%tes th%t % c%"" e" m%4 $ thout not ce su+st tute %'te"n%te c%"" e"s o" % "c"%!t, %n& m%4 %'te" o" om t sto00 ng 0'%ces sho$n on the t c5et n c%se o! necess t4- 3e ! n& noth ng the"e %utho" . ng No"th$est to &ec &e un '%te"%''4, %!te" the & st"esse& !' ght '%n&e& n Se%tt'e, what other sto..ing .laces 0et t one"s shou'& t%5e %n& when they should flySu+st tut ng aircrafts or carriers $ thout not ce s ent "e'4 & !!e"ent !"om ch%ng ng sto..ing .laces or connecting cities $ thout not ce6u"the"mo"e, the ch%nge n 0et t one"s: !' ght t ne"%"4 s not co#e"e& +4 the 0h"%se 2 n c%se o! necess t4-2 No"th$est !% 'e& to sho$ % c%se o! necess t4- It s % !%ct th%t some o! the 0%ssenge"s on the & st"esse& !' ght cont nue& on to the To54o connect ng 0'%ce- No e;0'%n%t on $h%tsoe#e" $%s g #en to 0et t one"s %s to $h4 the4 $e"e not s m '%"'4 %''o$e& to &o so- In the %+sence o! % &emonst"%te& necess t4 the"eo!, "es0on&ent comm tte& % +"e%ch o! the cont"%ct o! c%"" %ge2- 8ES- Ratio Mo"%' &%m%ges c%nnot +e %$%"&e& $ thout 0"oo! o! the c%"" e":s +%& !% th, '' $ '', m%' ce o" $%nton con&uct- Ne the" $ '' %ctu%' &%m%ges +e g"%nte& n the %+sence o! con# nc ng %n& t me'4 0"oo! o! ' oss- ,ut nom n%' &%m%ges m%4 +e %''o$e& un&e" the c "cumst%nces n the c%se he"e nD()po)(*(o+ Pet t on s PARTIA118 *RANTEG, %n& the %ss% 'e& Gec s on MOGI6IEG-

SAVELLANO ' NORTH&EST AIRLINES PAN*ANI,AN, G-; Du'4 A, 200/ (?on%s)


FACTSB ) Pet t one" B cto" no S%#e''%no $%s % C%+ug%o, I'ocos Su" m%4o" !o" m%n4 te"ms, !o"me" Ch% "m%n o! the ComE'ec %n& RTC ?u&ge- 7 s $ !e, 0et t one" B "g n % s % +us ness$om%n %n& o0e"%tes se#e"%' "u"%' +%n5s n I'ocos Su"- The cou0'e:s son 0et t one" Geog"%c %s $%s, %t the t me o! the nc &ent su+?ect o! the c%se, the B ce)*o#e"no" o! I'ocos Su") Pet t one"s &e0%"te& !"om S%n 6"%nc sco on +o%"& No"th$est A "' nes 6' ght 2<, ,us ness C'%ss, +oun& !o" M%n '%, Ph ' 00 nes us ng the N3 "oun&)t" 0 t c5ets $h ch $e"e ssue& %t "es0on&ent:s M%n '% t c5et ng o!! ce- N3 6' ght 2<:s 0 'ot m%&e %n eme"genc4 '%n& ng n Se%tt'e %!te"

%nnounc ng th%t % ! "e h%& st%"te& n one o! the 0'%ne:s eng nesPet t one"s %n& the othe" 0%ssenge"s $e"e nst"ucte& to go home to M%n '% the ne;t &%4, :us ng the s%me +o%"& ng 0%sses $ th the s%me se%t ng %""%ngements:- Res0on&ent shutt'e& %'' 0%ssenge"s to the Se%tt'e Re& 1 on 7ote' $he"e the4 $e"e + ''ete& %t ts e;0ense- P" o" to 'e%# ng the hote' the !o''o$ ng &%4, 0et t one"s met %t the 'o++4 Co'Ro+e"to Ge'! n, % 6 ' 0 no co)0%ssenge" $ho $%s %'so t"%#e'' ng ,us ness C'%ss, $ho n!o"me& them th%t he %n& some 0%ssenge"s $e"e 'e%# ng the ne;t &%4 on +o%"& the s%me 0'%ne $ th the s%me t ne"%"4) On %ccount o! the :eng ne !% 'u"e: o! the 0'%ne, 0et t one" B "g n % &e#e'o0e& ne"#ousness- On gett ng $ n& o! n!o"m%t on th%t the4 $e"e :+um0e& o!!:, she too5 :#%' um: to c%'m he" ne"#es %n& :cough s4"u0: !o" the !e#e" %n& co'&s she h%& &e#e'o0e& &u" ng the t" 0) 3hen 0et t one"s "e%che& the Se%tt'e A "0o"t, the g"oun& ste$%"&ess +e'%te&'4 %&# se& them th%t nste%& o! !'4 ng to M%n '% the4 $ou'& h%#e to +o%"& % /)hou" !' ght to 1os Ange'es !o" % connect ng !' ght to M%n '%,e!o"e +o%"& ng N3 6' ght 2/ !o" M%n '% # % Seou', 0et t one"s encounte"e& %nothe" 0"o+'em- The " / sm%'' h%n&c%"" e& tems $h ch $e"e not 0%&'oc5e& %s the4 $e"e me"e'4 closed by Ci..ers $e"e :not %''o$e&: to +e 0'%ce& ns &e the 0%ssenge"s: +%gg%ge com0%"tments o! the 0'%ne +4 %n %""og%nt N3 g"oun& ste$%"&ess) On 0et t one"s: %"" #%' %t NAIA, the4 s%$ Co'- Ge'! n %n& othe" 0%ssenge"s o! the & st"esse& !' ght $ho 'e!t Se%tt'e the &%4 %!te" the4 & &, %n& the4 $e"e te%se& !o" t%5 ng the 'onge" %n& t "esome "oute to the Ph ' 00 nes- 3hen 0et t one"s c'% me& the " 'ugg%ge, the4 & sco#e"e& th%t the tems $h ch $e"e not %''o$e& to +e 0'%ce& ns &e the 0%ssenge"s: +%gg%ge com0%"tment h%& +een "%ns%c5e& %n& the contents sto'en- B "g n % $%s '%te" to c'% m h%# ng 'ost & %mon& e%"" ngs, 2 Pe""4 *%n shoes, 4 $%tches, 2 0 eces o! T%g 7eue" $%tch J / +o;es o! E' .%+eth A"&en 0e"!umes- Geog"%c %s c'% me& to h%#e 'ost 2 0% "s o! Co'e 7%%n shoes, %n& c'othes, c%me"%, 0e"son%' com0ute", %n& ?e%ns) Pet t one"s th"ough counse' &em%n&e& !"om "es0on&ent the %mount o! P/M %s &%m%ges !o" $h%t the4 c'% me& to +e the hum ' %t on %n& ncon#en ence the4 su!!e"e& n the h%n&s o! ts 0e"sonne'- Res0on&ent & & not %cce&e to the &em%n&, m0e'' ng 0et t one"s to ! 'e % c%se !o" &%m%ges n the RTC- The RTC "en&e"e& ?u&gment n !%#o" o! 0et t one"s- In g"%nt ng mo"%' %n& %ctu%' &%m%ges, the RTC c"e& te& 0et t one"s: c'% m th%t the4 $e"e e;c'u&e& !"om the Se%tt'e)To54o)M%n '% !' ght to %ccommo&%te se#e"%' D%0%nese 0%ssenge"s +oun& !o" D%0%n- An& %s +%s s o! ts %$%"& o! %ctu%' &%m%ges %" s ng !"om the %''ege&'4 'ost %"t c'es, the RTC, 0%ss ng on the '%c5 o! "ece 0ts co#e" ng the s%me, too5 ?u& c %' not ce o! the 6 ' 0 nos: 0"%ct ce o! o!ten +" ng ng home 0%s%'u+ong !o" !" en&s %n& "e'%t #es (\\\)) The CA "u'e& th%t 0et t one"s h%& !% 'e& to sho$ "es0on&ent:s +%& !% th, neg' gence o" m%' ce n t"%ns0o"t ng them # % the Se%tt'e)1os Ange'es)Seou')M%n '% "oute- 7ence, t he'& th%t the"e $%s no +%s s !o" the RTC:s %$%"& o! mo"%' %n& e;em0'%"4 &%m%ges- Ne the" & & t ! n& %n4 "e%son to g"%nt %tto"ne4:s !ees- It !u"the" "u'e& th%t 0et t one"s: testimonial claim o! 'osses $%s unsu00o"te& +4 %n4 othe" e# &ence %t %''ISSUESB

IV AD#IRALT AND #ARITI#E CO##ERCE A. CONCEPT OF AD#IRALT ? CURISDICTION OVER AD#IRALT CASES INTERNATIONAL HARVESTER CO#PAN V ARAGON , ARAS % CO." A4 Ph ' /6/ PAPCS; August 26, 1E4E (Anton)
NATURE A00e%' !"om % ?u&gment o! the C6I o! M%n '%FACTS ) Ge!en&%nt M%n '% Te"m n%' Co-, Inc-, s n ch%"ge o! the custo&4 %n& &e' #e"4 to the "es0ect #e o$ne"s o! c%"goes & sch%"ge& %t the *o#e"nment 0 e"s n the C t4 o! M%n '%- Inte"n%t on%' 7%"#este"

47

TRANSPORTATION AND PUBLIC UTILITY LAW


Com0%n4 o! the Ph ' 00 nes (7ARBESTER) s the %gent n the Ph ' 00 nes o! the #esse' ,e''e o! the Se%) Se0tem+e" 2<, 1E46H the SIS ,e''e o! the Se% too5 on +o%"& %t 1os Ange'es, C%' !o"n %, C- S- A-, goo&s, !o" sh 0ment to M%n '%, Ph ' 00 nes, %n& co#e"e& +4 , '' o! 1%& ng No- /-0(- It %"" #e& n M%n '% on Gecem+e" 2/, 1E46, %n& & sch%"ge& he" c%"go %t the *o#e"nment 0 e"s un&e" the su0e"# s on %n& custo&4 o! the &e!en&%nt M%n '% Te"m n%' Co-, Inc) Out o! the goo&s co#e"e& +4 , '' o! 1%& ng No- 10(, one c%"ton o! %sso"te& s%m0'es $ th % st 0u'%te& #%'ue o! P200 $%s not &e' #e"e& to 8%"%s J Com0%n4; %n& s% & me"ch%n& se $%s 'ost th"ough the neg' gence e the" o! the M%n '% Te"m n%' Co-, Inc-, o" o! the Inte"n%t on%' 7%"#este" Com0%n4 o! the Ph ' 00 nes) It s c'e%" th%t 7%"#este", %s %gent n the Ph ' 00 nes o! the #esse' SIS ,e''e o! the Se%, s %'te"n%t #e'4 +e ng he'& ' %+'e !o" the 'oss o! the c%"go n 9uest on th"ough ts neg' gence) ,e!o"e t" %' cou'& 0"ocee&, 7%"#este" ! 'e& % mot on to & sm ss, on the g"oun& th%t the Mun c 0%' Cou"t o! M%n '% h%s no ?u" s& ct on, +ec%use the %ct on n#o'#es %&m "%'t4 o" m%" t me ?u" s& ct on- The mot on $%s o#e""u'e&) 7%"#este" ! 'e& % 0et t on !o" 0"oh + t on %g% nst A"%gon %n& 8%"%s $ th the C6I o! M%n '%- C6I "en&e"e& ?u&gment n !%#o" o! 7%"#este"- 6"om th s ?u&gment the "es0on&ents h%#e %00e%'e& ISSUE,S" 1- E;tent o! 7%"#este"=s ' %+ ' t42- 3ON the %ct on s one o! %&m "%'t4, the"e!o"e C6I h%s ?u" s& ct onHELD :. Inte"n%t on%' 7%"#este" Com0%n4 o! the Ph ' 00 nes m%4 +e he'& ' %+'e on'4 on the %ssum0t on th%t the goo&s h%& +een 'ost n t"%ns t o" +e!o"e +e ng & sch%"ge& %t the 0 e") The ' %+ ' t4 o! 7%"#este" s 0"e& c%te& on the cont"%ct o! c%"" %ge +4 se% +et$een the 7%"#este" %n& 8%"%s J Co- %s e# &ence& +4 , '' o! 1%& ng No- 10(, n&e0en&ent'4 o! the ' %+ ' t4 o! the M%n '% Te"m n%' Co-, Inc-, %s o0e"%to" o! %n %""%st"e se"# ce2- 8ES Ratio A&m "%'t4 h%s ?u" s& ct on o#e" %'' m%" t me cont"%cts, n $h%te#e" !o"m, $he"e#e" the4 $e"e e;ecute& o" %"e to +e 0e"!o"me&, +ut not o#e" non)m%" t me cont"%cts3hethe" o" not % cont"%ct s m%" t me &e0en&s o+ *0e SU!CECTD #ATTER of *0e .o+*ra.*, NOT o+ *0e PLACE 20ere *0e .o+*ra.* () ma-e a+- () *o 3e e;e.4*e- (m%5 ng the t"ue c" te" on % m%" t me se"# ce o" % m%" t me t"%ns%ct on, not the 'oc%' t4)Reasoning ) A&m "%'t4 h%s ?u" s& ct on o! % 0"ocee& ng n "em o" n 0e"son%m !o" the +"e%ch o! % cont"%ct o! %!!"e ghtment, $hethe" e# &ence& +4 % + '' o! '%& ng o" % ch%"te" 0%"t4- An& t40 c%' o! % cont"o#e"s4 o#e" cont"%cts o! %!!"e ghtment s % su t o! one 0%"t4 %g% nst the othe" !o" 'oss o! o" &%m%ge to the c%"go) 8%"%s conten&s th%t %&m "%'t4 ?u" s& ct on s not n#o'#e& he"e n +ec%use the cont"%ct n 9uest on $%s m%&e u0on '%n& %n& to +e te"m n%te& u0on '%n&- (Th s s %n Eng' sh "u'e $h ch h%& 'ong +een "e?ecte& n the CSA)-

-A2010-

PROF. RODRIGO LOPE QUIMBO


)As the D son s%n5, 1o0e. $%s th"o$n nto the $%te" %g% nst the 0"o0e''e", %n& the "e#o'# ng +'%&es n!' cte& #%" ous n?u" es u0on h m, cons st ng o! % +"u se n the +"e%st, t$o se" ous !"%ctu"es o! the +ones o! the 'e!t 'eg, %n& % com0oun& !"%ctu"e o! the 'e!t !emu"- As % conse9uence o! these n?u" es 1o0e. $%s 5e0t n +e& n % hos0 t%' n the C t4 o! M%n '% !o" %00"o; m%te'4 e ght months- 7e sets out #%" ous tems o! &%m%ge $h ch he su!!e"e&, %mount ng n %'' to someth ng mo"e th%n P120,000- These &%m%ges he see5s to "eco#e" o! the &e!en&%nts n th s %ct on)Ge!en&%nts %"gue& th%t the com0'% nt &oes not sho$ % " ght o! %ct on, s nce t &oes not %''ege th%t % 0"otest h%& +een 0"esente& +4 the 0'% nt !!, $ th n t$ent4)!ou" hou"s %!te" the occu""ence, to the com0etent %utho" t4 %t the 0o"t $he"e the %cc &ent occu""e&- It s %cco"& ng'4 ns ste& th%t, un&e" %"t c'e A/( o! the Co&e o! Comme"ce, the 0'% nt !! h%s sho$n no c%use o! %ct onISSUE 3ON the com0'% nt st%tes % c%use o! %ct on HELD 8ES The com0'% nt st%tes % goo& c%use o! %ct on u0on % c # ' ' %+ ' t4 %" s ng !"om to"t un&e" %"t c'es 1E02 %n& 1E0/ o! the C # ' Co&e- A c%se shou'& not +e & sm sse& on &emu""e" $hen, un&e" %n4 "e%son%+'e nte"0"et%t on o! the com0'% nt, % c%use o! %ct on c%n +e m%&e out; %n& the !%ct th%t % com0'% nt s n%"t ! c %''4 &"%$n o" n % ce"t% n &eg"ee '%c5 ng n 0"ec s on const tutes no su!! c ent "e%son !o" & sm ss ng t- I! % com0'% nt &oes not sho$ % goo& c%use o! %ct on, the %ct on c%n +e & sm sse& %t % '%te" st%ge o! the 0"ocee& ngs; %n& e#en $he"e no o+?ect on h%s +een 0"e# ous'4 m%&e, the 0o nt c%n +e "% se& n the Su0"eme Cou"t un&e" sect on E/ o! the Co&e o! C # ' P"oce&u"e)Assum ng th%t A"t- A/( o! the Co&e o! Comme"ce st%tes % con& t on 0"ece&ent to the m% nten%nce o! %n %ct on n % c%se $he"e 0"otest s "e9u "e& %n& th%t the m%5 ng o! 0"otest must +e %''ege& n the com0'% nt n o"&e" to sho$ % goo& c%use o! %ct on, th%t 0"otest $%s not necess%"4 n the c%se no$ +e!o"e us- The s% & %"t c'e s !oun& n the sect on &e%' ng $ th co'' s ons, %n& the conte;t sho$s the co'' s ons nten&e& %"e co'' s ons o! se%)go ng #esse's- S% & %"t c'e c%nnot +e %00' e& to sm%'' +o%ts eng%ge& n " #e" %n& +%4 t"%!! c)The Th "& ,oo5 o! the Co&e o! Comme"ce, &e%' ng $ th M%" t me Comme"ce, o! $h ch the sect on on Co'' s ons !o"ms % 0%"t, $%s e# &ent'4 nten&e& to &e! ne the '%$ "e'%t #e to me"ch%nt #esse's %n& m%" ne sh 00 ng; %n&, %s %00e%"s !"om s% & Co&e, the #esse's nten&e& n th%t ,oo5 %"e such %s %"e "un +4 m%ste"s h%# ng s0ec %' t"% n ng, $ th the e'%+o"%te %00%"%tus o! c"e$ %n& e9u 0ment n& c%te& n the Co&e)The $o"& 2#esse'2 (S0%n sh, 2+u9ue,2 2n%#e2), use& n the sect on "e!e""e& to $%s not nten&e& to nc'u&e %'' sh 0s, c"%!t o" !'o%t ng st"uctu"es o! e#e"4 5 n& $ thout ' m t%t on, %n& the 0"o# s ons o! th%t sect on shou'& not +e he'& to nc'u&e m no" c"%!t eng%ge& on'4 n " #e" %n& +%4 t"%!! c)Besse's $h ch %"e ' cense& to eng%ge n m%" t me comme"ce, o" comme"ce +4 se%, $hethe" n !o"e gn o" co%st$ se t"%&e, %"e no &ou+t "egu'%te& +4 ,oo5 III o! the Co&e o! Comme"ce- Othe" #esse's o! %

US R4/eB The ?u" s& ct on o! %&m "%'t4 n m%tte"s o! cont"%ct -epe+-) 4po+ *0e )43>e.*Dma**er, -e-, the n%tu"e %n& ch%"%cte" o! the cont"%ct, %n& th%t the Eng' sh "u'e $h ch conce&e& ?u" s& ct on ($ th !e$ e;ce0t ons) on'4 to cont"%cts m%&e u0on %n& to +e 0e"!o"me& u0on n%# g%+'e $%te"s, s n%&m ss +'e, the t"ue c" te" on +e ng th%t the cont"%ct h%s "e!e"ence to m%" t me se"# ce o" m%" t me t"%ns%ct on (T0e SC a-op*e- *0e US R4/e (+ *0e .a)e a* 0a+-)1ORG PEN8ONH KI! the %&m "%'t4 h%s ?u" s& ct on o#e" the su+?ect) m%tte", to s%4 th%t t s necess%"4 !o" the 0%"t es to go u0on the se% to e;ecute the nst"ument +o"&e"s u0on %+su"& t4-> (m%4+e th s shou'& +e K?u" s& ct on o#e" the 1OCATION>) ) P"oh + t on s the 0"o0e" "eme&4, s nce the "es0on&ent ?u&ge $%s t%5 ng cogn .%nce o! the c%se o#e" $h ch he h%& no ?u" s& ct on %n& h s o"&e" o#e""u' ng the mot on to & sm ss ! 'e& +4 the 0et t one")%00e''ee s nte"'ocuto"4 %n& the"e!o"e not %00e%'%+'eDISPOSITION Du&gment %!! "me&,. VESSELS

:. #EANING LOPEZ V DURUELO 97 PHIL. 77E? STREET? O.*o3er 77, :E7= ,marge"
NATURE A00e%' !"om &ec s on o! C6I Occ &ent%' Neg"os sust% n ng &e!en&%nt=s &emu""e" to % com0'% nt ! 'e& +4 Augusto 1o0e., !o" the 0u"0ose o! "eco#e" ng &%m%ges !o" 0e"son%' n?u" es n!' cte& u0on h m +4 "e%son o! the neg' gence o! the &e!en&%nts, Du%n Gu"ue'o %n& A'+ no D sonFACTS )6e+ 10, 1E2<H 1o0e., % "es &ent o! S '%4, Occ- Neg"os, $%s &es "ous o! em+%"5 ng u0on the nte" s'%n& ste%me" S%n D%c nto n o"&e" to go to I'o 'o- Th s +o%t $%s %t the t me n the %ncho" ng g"oun& o! the 0o"t o! S '%4, some h%'! % m 'e & st%nt !"om the 0o"t- 1o0e. the"e!o"e em+%"5e& %t the '%n& ng n the moto" +o%t D son, $h ch $%s then eng%ge& n con#e4 ng 0%ssenge"s %n& 'ugg%ge +%c5 %n& !o"th !"om the '%n& ng to +o%ts %t %ncho", %n& $h ch $%s o$ne& %n& o0e"%te& +4 the &e!en&%nt A'+ no D son, $ th Du%n Gu"ue'o %s 0%t"on)The eng nee" (m%9u n st%) %+o%"& on th s t" 0 $%s one Ro&o' n Gu"ue'o, % +o4 o! on'4 16 4e%"s o! %ge, %''ege& to h%#e +een % me"e no# ce $ thout e;0e" ence n the "unn ng o! moto" +o%ts; %n& the &%4 o! the occu""ence s s% & to h%#e +een the th "& &%4 o! h s %00"ent cesh 0 n th s c%0%c t4- It s %''ege& th%t the D son, u0on th s t" 0, $%s g"oss'4 o#e"'%&en, h%# ng %+o%"& !ou"teen 0%ssenge"s, $h 'e ts c%0%c t4 $%s on'4 !o" e ght o" n ne)As the moto" +o%t %00"o%che& the S%n D%c nto n % 0e"!ect'4 9u et se%, t c%me too ne%" to the ste"n o! the sh 0, %n& %s the 0"o0e''e" o! the sh 0 h%& not 4et ce%se& to tu"n, the +'%&es o! the 0"o0e''e" st"uc5 the moto" +o%t %n& s%n5 t %t once- It s %''ege& n the com0'% nt th%t the %00"o%ch o! the D son to th s &%nge"ous 0"o; m t4 $ th the 0"o0e''e" o! the S%n D%c nto $%s &ue to the !%u't, neg' gence %n& '%c5 o! s5 '' o! the &e!en&%nt Du%n Gu"ue'o, %s 0%t"on o! the D son-

48

TRANSPORTATION AND PUBLIC UTILITY LAW


m no" n%tu"e not eng%ge& n m%" t me comme"ce, such %s " #e" +o%ts %n& those c%""4 ng 0%ssenge"s !"om sh 0 to sho"e, must +e go#e"ne&, %s to the " ' %+ ' t4 to 0%ssenge"s, +4 the 0"o# s ons o! the C # ' Co&e o" othe" %00"o0" %te s0ec %' 0"o# s ons o! '%$)Comme+*) 31 *0e 2r(*er E)*a)e+ H F=hen the mercantile codes s.ea2 of $essels, they re,er solely and e-"lusi$ely to mer"%ant s%ips , as they do not include war shi.s, and furthermore, they almost always refer to craft which are not a""essory to anot%er as is the case of launches, lifeboats, etc1 )oreover, the mercantile laws, in ma2ing use of the words shi., vessel, boat, embar2ation, etc1, refer e/clusively to t%ose /%i"% are engaged in t%e transportation o, passengers and ,reig%t ,rom one port to anot%er or ,rom one pla"e to anot%er5 in a word, they refer to merchant vessels and in no way can they or should they be understood as referring to .leasure craft, yachts, .ontoons, health service and harbor .olice vessels, floating storehouses, warshi.s or .atrol vessels, coast guard vessels, fishing vessels, towboats, and other craft destined to other uses, such as for instance coast and geodetic survey, those engaged in scientific research and e/.loration, craft engaged in the loading and discharge of vessels from same to shore or doc2s, or in transhi.ment and those small craft which in harbors, along shore, bays, inlets, coves and anchorages are engaged in trans.orting .assengers and baggage1E (;stasen, <er1 )er1, vol1 (I, .1 1A71) D 4 Co+ '). Ip(/ ,4: P0(/. FF8"B A sm%'' #esse' use& !o" the t"%ns0o"t%t on o! me"ch%n& se +4 se% %n& !o" the m%5 ng o! #o4%ges !"om one 0o"t to %nothe" o! these Is'%n&s, e9u 00e& %n& # ctu%'e& !o" th s 0u"0ose +4 ts o$ne", s % #esse', $ th n the 0u"# e$ o! the Co&e o! Comme"ce, !o" the &ete"m n%t on o! the ch%"%cte" %n& e!!ect o! the "e'%t ons c"e%te& +et$een the o$ne"s o! the me"ch%n& se '%&en on t %n& ts o$ne")In the c%se +e!o"e us, the D son $%s 0"o0e''e& +4 % secon&)h%n& moto", o" g n%''4 use& !o" % t"%cto" 0'o$; %n& t h%& % c%0%c t4 !o" on'4 e ght 0e"sons-The use to $h ch t $%s +e ng 0ut $%s the c%""4 ng o! 0%ssenge"s %n& 'ugg%ge +et$een the '%n& ng %t S '%4 %n& sh 0s n the h%"+o"- Th s $%s not such % +o%t %s s contem0'%te& n %"t c'e A/( o! the Co&e o! Comme"ce, "e9u " ng 0"otest n c%se o! co'' s on)!/a+.oL) *rea*()e o+ #er.a+*(/e La2B KT%e /ords 1s%ip1 =na$e> and 1$essel1 =)u.ue>, n the " g"%mm%t c%' sense, %"e %00' e& to &es gn%te e#e"4 5 n& o! c"%!t, '%"ge o" sm%'', me"ch%nt #esse's o" $%" #esse's, % s gn ! c%t on $h ch &oes not & !!e" essent %''4 !"om ts ?u" & c%' me%n ng, %cco"& ng to $h ch #esse's !o" the 0u"0oses o! the Co&e %n& Regu'%t ons !o" the o"g%n .%t on o! the Me"c%nt 'e Reg st"4, %"e cons &e"e& not on'4 those eng%ge& n n%# g%t on, $hethe" co%st$ se o" on the h gh se%s, +ut %'so !'o%t ng &oc5s, 0ontoons, &"e&ges, sco$s %n& %n4 othe" !'o%t ng %00%"%tus &est ne& !o" the se"# ce o! the n&ust"4 o" m%" t me comme"ceK8et not$ thst%n& ng these 0" nc 0'es !"om $h ch t $ou'& seem th%t %n4 !'o%t ng %00%"%tus $h ch se"#es & "ect'4 !o" the t"%ns0o"t%t on o! th ngs o" 0e"sons o" $h ch n& "ect'4 s "e'%te& to th s n&ust"4, ought to +e su+?ecte& to the 0" nc 0'es o! the Co&e $ th "e!e"ence to o$ne"sh 0, t"%ns!e", " ghts, "eg st"%t on, etc-, $e %g"ee $ th ,en to %n& t so h%00ens n 0"%ct ce th%t the4 are not appli"a)le to small "ra,t /%i"% are only su)7e"t to administrati$e ="ustoms>

-A2010-

PROF. RODRIGO LOPE QUIMBO


) No#em+e" 2A, 1E1EH D- M- Po P%uco e;ecute& % mo"tg%ge n !%#o" o! the PN, to 0"otect % 'o%n o! P(0,000, %n& co#e" ng, %mong othe" th ngs, the t t'es, " ghts, %n& nte"ests $h ch Po P%uco h%& the lorchas -hina %n& -uylim- One &%4 '%te", th s mo"tg%ge $%s "eg ste"e& n the o!! ce o! the "eg ste" o! &ee&s o! I'o 'o- It $%s on'4 "eco"&e& n the o!! ce o! the co''ecto" o! customs o! I'o 'o on M%"ch (, 1E2E) Such &e!e""e& "eg st"%t on $%s &ue to ce"t% n &ou+ts ente"t% ne& +4 the co''ecto" o! customs o! the 0o"t o! I'o 'o touch ng the %00' c%+ ' t4 o! Act No- //24, %men& ng sect on 11<6 o! the A&m n st"%t #e Co&e; %n& th%t s% & co''ecto" on'4 &ec &e& to %&m t %n& "eg ste" s% & mo"tg%ge u0on lochas -hina %n& -uylim n M%"ch %!te" "ece 0t o! %&# ce !"om M%n '% "eg%"& ng the %00' c%+ ' t4 o! Act No- //24) M%" % Co"%.on 8u &e S%ne secu"e& % ?u&gment %g% nst the 1 m Pon.o N%# g%t on Co- !o" P<,1<E-6(- In &ue cou"se, % $" t o! %tt%chment %n& %n e;ecut on $e"e secu"e&, the &%te o! the '%tte" +e ng Gecem+e" 6, 1E2A- The not ce o! se .u"e $%s "eco"&e& +4 the co''ecto" o! customs o! I'o 'o on Gecem+e" 4, 1E2A, on $h ch &%te the "eco"&s o! th%t o!! ce & sc'ose& the #esse's %s !"ee !"om encum+"%nces) The %!o"ement one& $" t o! e;ecut on $%s not c%"" e& out +4 the she" !! +ec%use the Ph ' 00 ne N%t on%' ,%n5 ! 'e& % th "&)0%"t4 c'% m, M%" % Co"%.on 8u &e S%ne, the ?u&gment c"e& to", !% 'e& to g #e n&emn t4 +on& %s "e9u "e& +4 the she" !!) The she" !! o! I'o 'o nst tute& %n %ct on to com0e' the #%" ous 0e"sons %n& ent t es $ th c'% ms to the lorchas -hina %n& -uylim to nte"0'e%& $ th one %nothe" to &ete"m ne the " con!' ct ng " ghts- As % "esu't, Po Su4 1 ong, T , 1 ong J Co-, D- M- Po P%uco, M%" % Co"%.on 8u &e S%ne, %n& the Ph ' 00 ne N%t on%' ,%n5 0"esente& the " "es0ect #e %ns$e"s %n& com0'% nts) The t" %' cou"t he'& th%t the lorchas, +4 the me"e !%ct o! +e ng mo"tg%ge&, ce%se to 0e"t% n to the 1 m Pon.o N%# g%t on Co-, %s e# &ence +4 ce"t ! c%tes o! o$ne"sh 0; %n& +e ng 0"o0e"t4 %00e"t% n ng to the 1 m Pon.o N%# g%t on Co-, the4 $e"e #%' &'4 %tt%che& %n& 'e# e& u0on +4 # "tue o! the $" t o! e;ecut on ssue& u0on 0et t on o! 0'% nt !! M%" % Co"%.on 8u &e S%ne- It $%s on Gecem+e" 6, 1E2A, th%t +4 # "tue o! s% & $" t o! e;ecut on the she" !! 'e# e& u0on the lochas -hina %n& -uylim, $h ch, h%& +een %tt%che& on Gecem+e" 4, 1E2A; t +e ng un&e"stoo& th%t +oth %tt%chment %n& e;ecut on $e"e su+?ect to %'' ' ens e; st ng u0on s% & lorchas on the &%te o! the %tt%chment, $h ch ' ens $e"e the mo"tg%ges n !%#o" o! D- M- Po P%uco t"%ns!e""e& +4 the s%me to the Ph ' 00 ne N%t on%' ,%n5) The cou"t st%te& th%t &e!en&%nt M%" % Co"%.on 84 &e S%ne m%4, ! she so &es "es, %s5 !o" %nothe" o"&e" o! e;ecut on n c # ' c%se No- <6AA, %n& m%4 +4 # "tue the"eo! %tt%che& the lorchas -hina %n& -uylim, %n& o"&e" the " s%'e +4 0u+' c %uct on su+?ect to the mo"tg%ge e;ecute& the"eon +4 the o$ne", the 1 m Pon.o N%# g%t on Co-, n !%#o" o! the Ph ' 00 ne N%t on%' ,%n5, $h ch s he"e+4 &ec'%"e& #%' &ISSUE 3ON the mo"tg%ge e;ecute& n !%#o" o! PN, s #%' &HELD

regulations in t%e matter o, port ser$i"e and in t%e ,is%ing industry.> )The $o"& 2+a'e2 n S0%n sh, $h ch s use& nte"ch%nge%+'4 $ th 23454e2 n the Co&e o! Comme"ce, me%ns, %cco"& ng to the S0%n sh) Eng' sh G ct on%"4 com0 'e& +4 E&$%"& R- ,ens'e4 %n& 0u+' she& %t P%" s n the 4e%" 1AE6, ?s%ip+ a $essel /it% de"&s and sails.? A &ec5 s not % !e%tu"e o! the sm%''est t40es o! $%te" c"%!t)CS 6e&e"%' Cou"t, the c%se o! The M%m e (( 6e&-, A1/)H On'4 #esse's eng%ge& n $h%t s o"& n%" '4 5no$n %s m%" t me comme"ce %"e $ th n the 0"o# s ons o! '%$ con!e"" ng ' m te& ' %+ ' t4 on the o$ne" n c%se o! m%" t me & s%ste"- The $o"& 2#esse'2 n the '%$s o! !o"e gn m%" t me n%t ons, es0ec %''4 the 0"o# s ons o! the Comme"c %' Co&e o! 6"%nce, s limited to s%ips and ot%er sea-going $essels+ not appli"a)le to $essels in inland na$igation+ /%i"% are espe"ially designated )y t%e name o, )oats. )Nuot ng the 6"ench %utho" Gu!ou" (1 G"o t Me"- 121), KAs % gene"%' "u'e, the 0"o# s ons o! the Secon& ,oo5 o! the Comme"c %' Co&e S6"enchQ relate e-"lusi$ely to maritime and not to ,lu$ial na$igation ; %n& th%t conse9uent'4 the $o"& :sh 0,: $hen t s !oun& n these 0"o# s ons, ought to +e un&e"stoo& n the sense o! a $essel ser$ing t%e purpose o, maritime na$igation or seagoing $essel+ and not in t%e sense o, a $essel de$oted to t%e na$igation o, ri$ers. 2 )The"e!o"e, % 0%ssenge" on % +o%t ' 5e the D son s not "e9u "e& to m%5e 0"otest %s % con& t on 0"ece&ent to h s " ght o! %ct on !o" the n?u"4 su!!e"e& +4 h m n the co'' s on &esc" +e& n the com0'% nt- A"t- A/( o! the Co&e o! Comme"ce &oes not %00'4)E#en ! s% & 0"o# s on s cons &e"e& %00' c%+'e, % !% " nte"0"et%t on o! the %''eg%t ons o! the com0'% nt n& c%tes th%t the n?u" es su!!e"e& +4 the 0'% nt !! n th s c%se $e"e o! such % n%tu"e %s to e;cuse 0"otest; !o", un&e" %"t c'e A/6, t s 0"o# &e& th%t $%nt o! 0"otest c%nnot 0"e?u& ce % 0e"son not n % con& t on to m%5e 5no$n h s $ shes- An n& # &u%' $ho h%s su!!e"e& % com0oun& !"%ctu"e o! the !emu" %n& "ece #e& othe" 0h4s c%' n?u" es su!! c ent to 5ee0 h m n % hos0 t%' !o" m%n4 months, c%nnot +e su00ose& to h%#e +een n % con& t on to m%5e 0"otest $ th n t$ent4)!ou" hou"s o! such occu""ence- It !o''o$s th%t the &emu""e" n th s c%se $%s not $e'' t%5en %n& shou'& h%#e +een o#e""u'e&D()po)(*(o+ Du&gment %00e%'e& !"om "e#e"se&- Gemu""e" o#e""u'e&4- SI*NI6ICANCE O6 RE*ISTRATION O6 TRANSACTIONS A66ECTIN* BESSE1S

ARRO O V U DE SANE (4 P7I1 (11 6e+"u%"4 2A, 1E/0; MA1CO1M, D('o"%)


FACTS ) The lorchas Ch n% %n& Cu4' m $e"e o$ne& +4 the 1 m Pon.o N%# g%t on Co) No#em+e" 6, 1E1AH the t$o lorchas $e"e mo"tg%ge& to D- M- Po P%uco to gu%"%ntee % 'o%n o! P20,000- T$o &%4s '%te", the mo"tg%ge $%s &u'4 "eg ste"e& n the o!! ce o! the "eg ste" o! &ee&s o! I'o 'o-

49

TRANSPORTATION AND PUBLIC UTILITY LAW


) 8ES- The "eg st"%t on o! #esse's s no$ go#e"ne& +4 the A&m n st"%t #e Co&e, Sect on 11<1-1 ) It s c'e%" th%t sect on 11<1 o! the A&m n st"%t #e Co&e h%s mo& ! e& the 0"o# s ons o! the Ch%tte' Mo"tg%ge 1%$, Act No- 1(0A, 0%"t cu'%"'4 sect on 4 the"eo!- It s no$ not necess%"4 !o" % ch%tte' mo"tg%ge o! % #esse' to +e note& n the "eg st"4 o! the "eg ste" o! &ee&s- On the othe" h%n&, t s essent %' th%t % "eco"& o! &ocuments %!!ect ng the t t'e o! % #esse' +e ente"e& n the o!! ce o! the co''ecto" o! customs, %t % 0o"t o! ent"4- The '%$ %s no$ e; st ng s &es gne& to 0"otect 0e"sons $ho &e%' $ th % #esse' on the st"ength o! the "eco"& t t'e- Mo"tg%ges on #esse's, %'though not "eco"&e&, %"e goo& %s +et$een the 0%"t es- ,ut %s %g% nst c"e& to"s o! the mo"tg%go", %n un"eco"&e& mo"tg%ge s n#%' &) The Cou"t !oun& th%t the mo"tg%ge o! the PN, &%te& No#em+e" 2A, 1E1E, +ut not "eco"&e& n the o!! ce o! the co''ecto" o! customs unt ' M%"ch (, 1E2E- The e;ecut on sue& out +4 M%" % Co"%.on 8u &e S%ne $%s &%te& Gecem+e" 6, 1E2A, %n& note& %t the 0o"t o! ent"4 t$o &%4s 0" o" the"eto- Cn&e" these !%cts, the e;ecut on ho'&e" $ou'& h%#e % 0" o" " ght o#e" the un"eco"&e& mo"tg%ge- 7o$e#e", n the &ec s on o! the t" %' cou"t $e ! n& %n e;0'%n%t on o! the &e'%4 $h ch %00e%"s to h%#e +een 0"o#e& %t the t" %', %n& $h ch $e must %cce0t s nce the"e s noth ng n the "eco"& to the cont"%"4) The t" %' cou"t st%te& th%t the !%ct th%t the mo"tg%ge $%s not "eg ste"e& n the o!! ce o! the co''ecto" o! customs o! I'o 'o unt ' M%"ch (, 1E2E, $%s +ec%use o! the &ou+ts ente"t% ne& +4 the co''ecto" "e'%t #e to the %00' c%+ ' t4 o! Act No- //24 to % mo"tg%ge e;ecute& n 1E1A n !%#o" o! % Ch nese su+?ect- Th s uncont"%& cte& !%ct must +e t%5en %s cu" ng the +%n5:s &e!ect #e t t'e- Th%t the co''ecto" o! customs & & not 0e"!o"m h s &ut4 $%s no !%u't o! the +%n5- Const"uct #e "eg st"%t on o! the mo"tg%ge must, the"e!o"e, +e %cce0te&) The Cou"t "u'e& th%t %s +et$een the %00e''%nt, M%" % Co"%.on 8u &e S%ne, %n& the %00e''ee, the Ph ' 00 ne N%t on%' ,%n5, the '%tte" h%s % su0e" o" c'% m n the %mount o! P20,000, the %mount o! the mo"tg%ge o! Po P%uco $h ch $%s t"%ns!e""e& to the Ph ' 00 ne N%t on%' ,%n5-

-A2010-

PROF. RODRIGO LOPE QUIMBO

>ecord of documents affecting title - Z In the "eco"& o! t"%ns!e"s %n& ncum+"%nces o! #esse's, to +e 5e0t %t e%ch 0" nc 0%' 0o"t o! ent"4, sh%'' +e "eco"&e& %t 'ength %'' t"%ns!e"s, + ''s o! s%'e, mo"tg%ges, ' ens, o" othe" &ocument $h ch e# &ence o$ne"sh 0 o" & "ect'4 o" n& "ect'4 %!!ect the t t'e o! "eg ste"e& #esse's, %n& the"e n sh%'' +e "eco"&e& %'' "ece 0ts, ce"t ! c%tes, o" %c5no$'e&gments c%nce' ng o" s%t s!4 ng, $ho'e o" n 0%"t, %n4 such o+' g%t on- No othe" "eco"& o! %n4 such &ocument o" 0%0e" sh%'' +e "e9u "e& th%n such %s s %!!ecte& he"eun&e"-

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