TRANSPORTATION LAW: JURISPRUDENCE, DOCTRINES

AND PRINCIPLES
CONTRACT OF INTERNATIONAL TRANSPORTATION
1. DEFINITION
If according to the contract made by the
parties, the place of departure and the place
of destination, whether or not there be a
break in the transportation or a
transshipment, are situated either within the
territories of two High Contracting Parties, or
within the territory of a single High
Contracting Party, if there is an agreed
stopping place within a territory subject to the
sovereignty, mandate or authority of another
power, even though that power is not a party
to this convention.

2. CATEGORIES
a. that where the place of departure and
the place of destination are situated
within the territories of two High
Contracting Parties regardless of whether
or not there be a break in the
transportation or a transshipment; and
b. that where the place of departure and
the place of destination are within the
territory of a single High Contracting
Party if there is an agreed stopping place
within a territory subject to the
sovereignty, mandate, or authority of
another power, even though the power is
not a party of the Convention.
HIGH CONTRACTING PARTY
Signatories thereto and those which
subsequently adhered to it.

3. JURISDICTION
A complaint for damages against an air carrier
can be instituted only in any of the following
places/courts:

a. The court of the domicile of the carrier;

b. The court of its principal place of
business;

c. The court where it has a place of business
through which the contract had been
made;

d. The court of the place of destination.

4. JURISDICTION, NOT VENUE
a. The wording of Article 32, which indicates
the places where the action for damages
"must" be brought, underscores the
mandatory nature of Article 28(1).
b. This characterization is consistent with
one of the objectives of the Convention,
which is to "regulate in a uniform manner
the conditions of international
transportation by air."
c. The Convention does not contain any
provision prescribing rules of jurisdiction
other than Article 28(1), which means
that the phrase "rules as to jurisdiction"
used in Article 32 must refer only to
Article 28(1). In fact, the last sentence of
Article 32 specifically deals with the
exclusive enumeration in Article 28(1) as
"jurisdictions," which, as such, cannot be
left to the will of the parties regardless of
the time when the damage occurred.
5. DESTINATION and NOT AGREED STOPPING
PLACE
Article 1(2) also draws a distinction between a
"destination" and an "agreed stopping place."
It is the "destination" and not an "agreed
stopping place" that controls for purposes of
ascertaining jurisdiction under the
Convention.

The contract is a single undivided operation,
beginning with the place of departure and
ending with the ultimate destination. The use
of the singular in this expression indicates the
understanding of the parties to the
Convention that every contract of carriage has
one place of departure and one place of
destination. An intermediate place where the
carriage may be broken is not regarded as a
"place of destination."

6. APPLICABILITY TO ACTIONS BASED ON TORT
It provides that any action based on the injuries
specified in Article 17 "however founded," i.e.,
regardless of the type of action on which relief is
founded, can only be brought subject to the
conditions and limitations established by the
Warsaw System.
Presumably, the reason for the use of the phrase
"however founded," in two-fold: to accommodate
all of the multifarious bases on which a claim might
be founded in different countries, whether under
code law or common law, whether under contract
or tort, etc.; and to include all bases on which a
claim seeking relief for an injury might be founded
in any one country.
An allegation of willful misconduct resulting in a
tort is insufficient to exclude the case from the
realm of the Warsaw Convention

NON- USE OF ORIGINAL ROUTE: NOTICE OF LOSS
1. PROVISIONS IN AN AIRLINE TICKET
a. Carrier may without notice substitute
alternate carriers or aircrafts..
DOES NOT AUTHORIZE changing of
stopping places or connecting cities
without notice or unilaterally

b. Alter or omit stopping places shown in
ticket in case of necessity
Burden of proving necessity:
carrier
Necessity in landing because of
engine trouble does not mean
necessity in shuttling passengers
to other connecting points
without their consent
When, as a result of engine
malfunction, a commercial
airline is unable to ferry its
passengers on the original
contracted route, it nonetheless
has the duty of fulfilling its
responsibility of carrying them
to their contracted destination
on the most convenient route
possible. Failing in this, it cannot
just unilaterally shuttle them,
without their consent, to other
routes or stopping places
outside of the contracted
sectors.
2. NOTICE OF LOSS (Rules Relating to
International Carriage by Air ; Warsaw
Convention)
a. Receipt by the person entitled to delivery
of luggage or goods without complaint is
prima facie evidence that the same have
been delivered in good condition and in
accordance with the document of
carriage.

b. In case of damage, the person entitled to
delivery must complain to the carrier
forthwith after the discovery of the
damage, and, at the latest, within three
days from the date of receipt in the case
of luggage and seven days from date of
receipt in the case of goods. In the case
of delay the complaint must be made at
the latest within fourteen days from the
date on which the luggage or goods have
been placed at his disposal.
c. Every complaint must be made in writing
upon the document of carriage or by
separate notice in writing dispatched
within the times aforesaid.
d. Failing complaint within the times
aforesaid, no action shall lie against the
carrier, save in the case of fraud on his
part."
APPLICABILITY OF PERIODS OF PRESCRIPTION: ARTICLE
29 OF THE WARSAW CONVENTION AND ARTICLE 1146
1. Applies to all international transportation of
persons baggage or goods performed by any
aircraft for hire
2. PURPOSE OF CONVENTION: Uniformity of
rules regarding claims in international air
travel
A passenger whose claim does not
satisfy the conditions of liability
under the Convention is PRECLUDED
from maintaining an action for
personal injury under local law if the
statute of limitations of two years
had already lapsed.

3. When claim is for breach of contract of
carriage (delay), Convention is applicable.
4. When claim is based emotional harm
(humiliation, embarrassment, mental anguish
etc.) resulting from gross negligence, Civil
Code is applicable. (PP: 4 years)

DUTIES OF CAPTAIN
1. He is a confidential and managerial employee
2. He is one who is command of the vessel; to
him is committed the governance, care, and
management of vessel
3. Three distinct roles:
a. he is a general agent of the shipowner;
(fiduciary)
b. he is also commander and technical
director of the vessel; and (management;
most important)
c. he is a representative of the country
under whose flag he navigates
4. As agent of the shipowner, he has authority
a. To sign bills of lading, carry goods aboard
and deal with the freight earned, agree
upon rates and decide whether to take
cargo
b. To enter into contracts with respect to
the vessel and the trading of the vessel,
subject to applicable limitations
established by statute, contract or
instructions and regulations of the
shipowner
5. He shall be given the DISCRETION to decide
and perform acts which he deems necessary
for the protection and preservation under his
charge
a. He is right there on the vessel, in
command of it and (it must be presumed)
knowledgeable as to the specific
requirements of seaworthiness and the
particular risks and perils of the voyage
he is to embark upon
b. If he decides that the vessel must await
the delivery of certain supplies before its
voyage shall continue, this must be
respected.
c. Here, NECESSITY does not mean
irresistible compelling power. It means
the force of circumstances which
determine the course a man ought to
take
DUTIES OF A PILOT
1. He is a person duly qualified, and licensed, to
conduct a vessel into or out of ports, or in
certain waters
2. In its broadest sense, includes:
a. those whose duty it is to guide vessels
into or out of ports, or in particular
waters and
b. those entrusted with the navigation of
vessels on the high seas
3. He does not take entire charge of the vessel,
but is merely the adviser of the master, who
retains command and control of the
navigation even in localities where pilotage is
compulsory.
4. COMPULSORY PILOTAGE
a. PURPOSE: To create a body of seamen
thoroughly acquainted with the harbor,
to pilot vessels seeking to enter or
depart, and thus protect life and property
from the dangers of navigation
b. CONTROL, DUTIES AND LIABILITY
PILOT
To exercise the ordinary skill
and care demanded by the
circumstances..
Under extraordinary
circumstance, a pilot must exercise
extraordinary care.
..usually shown by an expert in
his profession.
He must possess a standard
minimum of special knowledge and
ability.
Once he offers his services
to another, he is holding
himself out as possessing
skills which others in the
same profession have. If in
fact he shows that he
doesnt, he is not only
negligent, but is guilty of
fraud.
Responsible for the damage
caused to a vessel or to life and
property at ports due to his
negligence or fault
Absolved from liability if
the accident is caused by
force majeure or natural
calamities provided he has
exercised prudence and
extra diligence to prevent
or minimize damage
Responsible for the direction of
a vessel from the time he
assumes his work as a pilot
thereof until he leaves it
anchored or berthed safely
Absolved at the moment
the Master neglects or refuses
to carry out hisorder.
MASTER
Retain overall command of the
vessel even on pilotage grounds
whereby he can countermand
or overrule the order or
command of the Harbor Pilot on
board (vigilance commensurate
with the circumstances)
He is control except in case
of navigation
He must interfere with the
pilot when the pilot is
obviously incompetent or
intoxicated or displace him
a because of incompetency
or physical incapacity
If no circumstances exist,
he may rely on pilot but not
blindly

Any damage caused to a vessel
or to life and property at ports
by reason of the fault or
negligence of the Master shall
be the responsibility and liability
of the registered owner of the
vessel concerned without
prejudice to recourse against
said Master (all natural and
proximate damages except
insofar as their liability is limited
or exempted by statute)
Absolved of liability when pilot
is on board
But he must cause the
ordinary work of the vessel
to be properly carried on
and the usual precaution
taken
He is bound to see that
there is sufficient watch on
deck, and that the men are
attentive to their duties,
also that engines are
stopped, towlines cast off,
and the anchors clear and
ready to go at the pilot's
order.
5. PRESUMPTION: Moving vessel that that
strikes a stationary object such as a dock or
navigational aid is AT FAULT

MARITIME CONTRACTS: MARITIME LIENS
1. RTC has exclusive original jurisdiction (i)n all
actions in admiralty and maritime where the
demand or claim exceeds two hundred
thousand pesos (P200,000) or in Metro
Manila, where such demand or claim exceeds
four hundred thousand pesos (P400,000).
2. Tests used to determine whether a case
involving a contract comes within the
admiralty and maritime jurisdiction of a court
a. Locational test
Maritime and admiralty
jurisdiction, with a few
exceptions, is exercised only on
contracts made upon the sea
and to be executed thereon.
b. Subject matter test
Depends on the nature and
subject matter of the contract,
having reference to maritime
service and transactions.
Preferred: (w)hether or not a
contract is maritime depends
not on the place where the
contract is made and is to be
executed, making the locality
the test, but on the subject
matter of the contract, making
the true criterion a maritime
service or a maritime
transaction.

3. A contract for furnishing supplies is maritime
and within the jurisdiction of admiralty
4. TESTS in determining existence of MARITIME
LIEN under Philippine Laws
a. Depends on the law of the country where
supplies were furnished
b. Place of the wrongful act;
c. law of the flag;
d. allegiance or domicile of the injured;
e. allegiance of the defendant shipowner;
f. place of contract;
g. inaccessibility of foreign forum;
h. law of the forum.
In a case, if only the Philippine law is the law of forum,
but the other pertains to a foreign country, NO
MARITIME LIEN EXISTS.
5. DOCTRINE OF PROCESSIONAL PRESUMPTION,
MARITIME LIEN ON NECESSARIES: REQUISITES
a. the necessaries must have been
furnished to and for the benefit of the
vessel;
b. the necessaries must have been
necessary for the continuation of the
voyage of the vessel;
c. the credit must have been extended to
the vessel;
d. there must be necessity for the extension
of the credit; and
e. the necessaries must be ordered by
persons authorized to contract on behalf
of the vessel.

LIMITED LIABILITY RULE
1. The civil liability contracted by the shipowners
in the cases prescribed in this section shall be
understood as limited to the value of the
vessel with all her equipment and all the
freight money earned during the voyage.
2. Purpose: encouragement of shipbuilding and
investment in maritime commerce.
3. Consequence: The right to abandon vessel
with all her equipments and the freight he
may have earned during the trip to exempt
himself from civil liability for the indemnities
in favor of third persons which arise from the
conduct of the captain in the care of the
goods which the vessel carried
4. LIABILITY OF AGENTS OR SHIPOWNERS
a. In case of lawful acts and obligations of
the captain beneficial to the vessel
Acts may be enforced as against
the agent for the reason that
such obligations arise from the
contract of agency (provided,
however, that the captain does
not exceed his authority)

b. In case of unlawful acts of captain,
He is subsidiarily civilly liable.
This liability of the agent is
limited to the vessel and it does
not extend further. For this
reason the Code of Commerce
makes agent liable to the extent
of the value of the vessel, as to
the codes of the principal
maritime nations provided, with
the vessel, and not individually.
5. EXCEPTIONS TO LIMITED LIABILITY RULE
a. where the injury or death to a passenger
is due either to the fault of the
shipowner, or to the concurring
negligence of the shipowner and the
captain;
b. where the vessel is insured; and ( XPN to
XPN: "creditors in an insolvent
corporation whose assets are not enough
to satisfy the totality of claims against it)
c. in workmen's compensation claims.

6. REAL AND HYPOTHECARY NATURE OF
MARITIME LAW
a. the limitation of the liability of the
agents to the actual value of the vessel
and the freight money (no liability if
vessel is lost)
b. the right to retain the cargo and the
embargo and detention of the vessel
even cases where the ordinary civil law
would not allow more than a personal
action against the debtor or person liable.
Rights are CORRELATIVE.
a. If the agent can exempt himself from
liability by abandoning the vessel and
freight money, thus avoiding the
possibility of risking his whole fortune in
the business, it is also just that his
maritime creditor may for any reason
attach the vessel itself to secure his claim
without waiting for a settlement of his
rights by a final judgment, even to the
prejudice of a third person.
b. If the agent is only liable with the vessel
and freight money and both may be lost
through the accidents of navigation it is
only just that the maritime creditor have
some means of obviating this precarious
nature of his rights by detaining the ship,
his only security, before it is lost.
7. WHO IS AN AGENT
A person intrusted with the provisioning
of the vessel, or the one who represents
her in the port in which she happens to
be. He represents the interests of the
owner of the vessel.

8. CASES INVOLVING UNSEAWORTHINESS: WHO
HAS BURDEN
a. Claimant
b. But if shipowner or agent invokes limited
liability rule, burden of proof as to lack of
privity or knowledge on its part with
respect to the matter of negligence or
unseaworthiness is shifted to it
DOCTRINE OF INSCRUTABLE FAULT; DOCTRINE OF LAST
CLEAR CHANCE NOT APPLICABLE IM MARITIME
COLLISSION
1. If both vessels may be blamed for the collision,
each one shall be liable for its own damages,
and both shall be jointly responsible for the
loss and damages suffered by their cargoes. No
one can recover.
2. Doctrine of last clear chance: decision as to its
applicability is reserved. Even if otherwise,
party cannot calim exemption from liability if
the other does discover the perilous situation
of the launch in time to avoid the accident by
the exercise of ordinary care.
BILL OF LADING
1. DEMMURRAGE
a. It is compensation provided for in the
contract of affreightment for the
detention of the vessel beyond the time
agreed on for loading and unloading
b. It is claim for damages for failure to
accept delivery.
c. In a broad sense, every improper
detention of a vessel may be considered
a demurrage
d. Recoverable
In its strict sense, only when expressly
stipulated
In its broadest sense, for a breach of the
implied obligation to load or unload the
cargo with reasonable dispatch, but only
by the party to whom the duty is owed
and only against one who is a party to the
shipping contract.


2. BILL OF LADING
a. A contract or receipt for the transport of
goods and their delivery to the person
named therein, to the order or bearer.
b. FUNCTIONS:
As a contract, it names the
contracting parties which
include the consignee, fixes the
route, destination, freight rate
or charges, and stipulates the
right and obligations assumed
by the parties. Its terms and
conditions are conclusive on the
parties, including the consignee.
As a receipt, parties have
assented to the terms of the
consignment contained therein,
and became bound thereby, so
far as the conditions named are
reasonable in the eyes of the
law.
Hence, if delivered and
accepted, it constitutes the
contract of carriage even
though not signed
As a document of title.
c. It is contract by of three parties, namely,
the shipper, the carrier, and the
consignee
3. KINDS OF BILL OF LADING
a. On Board Bill Of Lading
One in which it is stated that the
goods have been received on board
the vessel which is to carry the
goods.
b. Received For Shipment Bill Of Lading
One in which it is stated that the
goods have been received for
shipment with or without specifying
the vessel by which the goods are to
be shipped.
4. OVERSHIPMENT IN VIOLATION OF CUSTOM
LAWS: NOT A GROUND FOR INADHERENCE TO
BINDING FORCE OF ACCEPTED BILL OF LADING
Inaction for a long time conveys the clear
inference that it accepted the terms and
conditions of the bill of lading.

5. THREE INDEPENDENT CONTRACTS UNDER
LETTER OF CREDIT
a. the contract of sale between the
buyer and the seller
b. the contract of the buyer with the
issuing bank, and
c. the letter of credit proper in which
the bank promises to pay the seller
pursuant to the terms and conditions
stated therein
Hence, BILL OF LADING: SEPARATE FROM
OTHER LETTER OF CREDIT ARRANGEMENTS:
DISCREPANCY B/W AMOUNTS COVERED BY
CONTRACT OF SALE AND CONTRACT OF
CARRIAGE WILL NOT AFFECT VALIDITY OF
ENFORCEABILITY OF THE CONTRACT OF
CARRIAGE IN THE BILL OF LADING


AVERAGE
1. LAW ON AVERAGES
That claims for averages shall not be
admitted if they do not exceed 5% of the
interest which the claimant may have in the
vessel or in the cargo if it be gross average
and 1% of the goods damaged if particular
average, deducting in both cases the expenses
of appraisal, unless there is an agreement to
the contrary.
2. INAPPLIABLE: Common carriers
They cannot limit their liability for injury
or loss of goods where such injury or loss was
caused by its own negligence


3. WHAT IS GENERAL AVERAGE
It is contribution by the several interests
engaged in the maritime venture to make
good the loss of one of them for the voluntary
sacrifice of a part of the ship or cargo to save
the residue of the property and the lives of
those on board, or for extraordinary expenses
necessarily incurred for the common benefit
and safety of all.

4. WHAT IS PARTICULAR AVERAGE
It is loss happening to the ship, freight, or
cargo which is not be (sic) shared by
contributing among all those interested, but
must be borne by the owner of the subject to
which it occurs.

5. SALVAGE
a. DEFINITION
It is compensation allowed to
persons by whose assistance a ship or her
cargo has been saved, in whole or in part,
from impending peril on the sea, or in
recovering such property from actual
loss, as in case of shipwreck, derelict, or
recapture."

b. ELEMENTS
(1) a marine peril
(2) service voluntarily rendered when not
required as an existing duty or from a
special contract, and
(3) success in whole or in part, or that the
service rendered contributed to such
success.

c. SALVAGE LAW
When in case of shipwreck, the
vessel or its cargo shall be beyond the
control of the crew, or shall have been
abandoned by them, and picked up and
conveyed to a safe place by other
persons, the latter shall be entitled to a
reward for the salvage.

6. IMPORTANCE OF DISTINCTION OF SALVAGE
AND TOWAGE
The distinction between salvage and
towage is of importance to the crew of the
salvaging ship, for the following reasons: If the
contract for towage is in fact towage, then the
crew does not have any interest or rights in
the remuneration pursuant to the contract.
But if the owners of the respective vessels are
of a salvage nature, the crew of the salvaging
ship is entitled to salvage, and can look to the
salvaged vessel for its share

Hence, in case of towage, crew has
no interest if vessel owner waived all its
claims.

CARRIAGE OF GOODS BY SEA ACT
1. RULE ON PRESCRIPTION
Unless notice of loss or damage and
the general nature of such loss or damage be
given in writing to the carrier of his agent at the
port of discharge or at the time of the removal
of the goods into the custody of the person
entitled to delivery thereof under the contract
of carriage, such removal shall be prima facie
evidence of the delivery by the carrier of the
goods as described in the bill of lading. If the
loss or damage is not apparent, the notice must
be given within three days of the delivery.
In any event the carrier and the ship
shall be discharged from all liability in respect
of loss or damage unless suit is brought within
one year after delivery of the goods or the
date when the goods should have been
delivered: Provided, That if a notice of loss or
damage, either apparent or concealed, is not
given as provided for in this section, that fact
shall not affect or prejudice the right of the
shipper to bring suit within one year after the
delivery of the goods or the date when the
goods should have been delivered.

2. PURPOSE OF RULE: To meet the exigencies of
maritime hazards

3. PARTIES INVOLVED
a. CARRIER
Owner or the charterer who enters into a
contract of carriage with a shipper

b. SHIP
Any vessel used for the carriage of goods
by sea
4. WHAT CONSTITUTES DELIVERY
Delivery to the arrastre operator. That
delivery is evidenced by tally sheets which
show whether the goods were landed in good
order or in bad order, a fact which the
consignee or shipper can easily ascertain
through the customs broker

Consistent with duty imposed water carriers
was merely to transport from wharf to wharf
and that the carrier was not bound to deliver
the goods at the warehouse of the consignee

5. RULE (1): SHALL PREVAIL OVER STIPULATIONS
OF PARTIES
Any clause, covenant, or agreement in a
contract of carriage relieving the carrier or the
ship from liability for loss or damage to or in
connection with the goods . . . or lessening
such liability otherwise than as provided in
this Act, shall be null and void and of no
effect." (Section 3.)

6. EVENTS ENVISIONED
a. LOSS
When thing perishes, or goes out of
commerce, or disappears in such a way
that its existence unknown or it cannot
be recovered.
A situation where there is no delivery at
all was made by the shipper of the goods
because the same had perished, gone out
of commerce, or disappeared that their
existence is unknown or they cannot be
recovered

Hence, there is no loss in case of
misdelivery.

b. DAMAGE

7. BASIS OF LIABILITY OF ARRASTRE OPERATOR:
DIFFERENT FROM THAT OF A CARRIER
a. Period
The action against the arrastre operator
to enforce liability for loss of the cargo or
damage thereto should be filed within
one year from the date of the discharge
of the goods or from the date when the
claim for the value of such goods has
been rejected or denied by the arrastre
operator.

b. Condition Precedent
A claim (provisional or final) shall have
been previously filed with the arrastre
operator within fifteen days from the
date of the discharge of the last package
from the carrying vessel

8. PRESCRIPTION OF ACTIONS UNDER RULE 1:
NOT INTERRUPTED OR TOLLED BY
EXTRAJUDICIAL WRITTEN DEMAND OF
CREDITOR
REASON: Matters affecting transportation of
goods by sea be decided in as short a time as
possible; the application of the provisions of
Article 1155 of the new Civil Code would
unnecessarily extend the period and permit
delays in the settlement of questions affecting
transportation, contrary to the clear intent
and purpose of the law.

9. RULE INAPPLICABLE WITH REGARDS INSURERS
LIABILITY
Insurer's liability is based not on the contract
of carriage but on the contract of insurance

RULING UNDER FILIPINO MERCHANTS
INSURANCE CO. INC V ALEJANDRO: INAPPLICABLE
The insurer, like the shipper, may no longer file
a claim against the carrier beyond the one-year
period provided in the law. But it does not
mean that the shipper may no longer file a
claim against the insurer because the basis of
the insurer's liability is the insurance contract.

10. CARRIER MAY LIMIT LIABILITY UNLESS SHIPPER
DECLARES GREATER VALUE
Neither the carrier nor the ship shall in any
event be or become liable for any loss or
damage to or in connection with the
transportation of goods in an amount
exceeding $500 per package lawful money of
the United States, or in case of goods not
shipped in packages, per customary freight
unit, or the equivalent of that sum in other
currency, unless the nature and value of such
goods have been declared by the shipper
before shipment and inserted in the bill of
lading. This declaration, if embodied in the bill
of lading shall be prima facie evidence, but
shall be conclusive on the carrier.