San Dena Coltege of Ki En ui Gentags from Feralgn Ports to Philippine Ports: 3. New Givi Code: priesar? lar b, Code” of ‘Commacren: ii) matters net regulated by tha Chl Cone © Ganinga uf Goods vy Gea Ac! sunpiotary t0 the Givi Code 3. Gurrlage from Phillprine Ports to Forsigr Forts The laws of tte country to which tne Goods are te be trnnaported, 4, Overland Tranaportation S. Clull Cade : prin ay lave Code of Commerce : suppl lor E. Ale Teantoe *atlsn 8. Chi Code b. Gedo of Commerce ¢. Warsaw Conv ntion + Sonventon for the Unification of Zesain Poles reatteg to Interne onal Bartingn by Air thant In Waraavs on 42 October 1928, ‘The agroe.nent among sovernign —eduntios orcerming tha requlation In Uniform manner uf the condrions of inornatloral varspostatior by ai In respaet Af tne documents sea fr sutn transportation and ofthe Haatiy otha carter Intarnational Transodrtation Wrranw Convention Where the plaes of dapadture and the pleco of oasinallen ary witsin ine execute mires under ERaEU? CALUN AIDEN over cha and ar serdemie”eperatons, MANOLO KEL SA-TOS cha Bate URS fov operons VAN CARLOS UESTRO we ha for nzwd lex, MAE ANGELIC TANO eg eh frst eG nn MEMORY AID IN COMMERCINE LAW L167 eqitories of vo contracting countries togardings of whether ar nol thera waa n ‘eeak In’ tho transportation or lnacsedipmant; aad Wore the place of departure and. tha placa af destination en within the tecrltory fof 8 glngla contracing covnlry, if tect Ik sa ngreed stopping plece within a territory subject to the savorelgnty, mamtnta or uitotily of another power, even though the powor Is not a party te tha Gon tion (non v. Court of Apponls, 275 GR No, 122203, 8 ly 1997) FTAA HTT, No snnetine, cartiicate, or any other form ef uihorization for the operation of a vas uti shail be ranted except to vetizens af the Phiispings or to cortoratians of nasncuations ‘organizes tinder tho Inwe of the Philippinen at Tenat slaly par contum of whose expital 8 own earch, wee th Yeo Menger Ui teas FOAM AN) un Snel bog ea i see ig i IRE det bn sitet gi gannye RIA cos! aid ayfsPe tions. sur i Rs RIF eles ‘of thie’ OAS ta tink itn punt interest" during the comargant Mihinble torn ilont, GRACE ARH TH He i ERIN ANTHANCU! O rae eer asonte UMEENE SRA EOS Avice chal lo ep ACE ETUO CONCERCION Wer aT aunak \corimenctat ust PATRCX SARMIENTO eae: Se ‘ahaa Sandoval fobs Sabres, A 840 fa, Agnes PRGe, ASH Anels, Br hye eal, Mac PATRIA ROLE OF TACHO est eae eee ee TOMANO sped ey [OYTULRY WON bsrking Hu, OIOFTROS SULT ee of envmace, ra Trea ROE MARCUEE ivuranee Iw SEAN DUTNSUCESO trnaportnion we MARICG PAR WTeiting the, Minsk Magan, Anthony Menta, Tin Santos odece nee Sh enw sev, Age Vos, Ham Rut Gee Para, 1 8%, soe eh JAN MAMUELLE REYES ep, IV ARSANIIE/Y Ue INANE sgrtibe open smo Passo, eve oe. one ae ee gpa Tevet Tatu, Cat Fath Tre, Sa haa Navae, Mes Ma, Ash nse Dy Sty Aan* 180.2009 CENTRALIZED Wan GPERATIONS $02, +7), ‘Tho Sta'e may, n the Intarest cf national welfare of dafonse, evlebllsh and ooerste vila Industries ‘and pon payment of just compensation, trar.sfer {o publls ownnrship Ubltles and thar private enterprises to ba aperatod by the gevernnient (Ant, Xi, Seo, 19), t The State shall raguiete or probib:t monopoles ‘when i.e public Interval $0. requires. No combinations in restralat of trade or untalr coimpattion shell be alowed (Art. x1! Soc, 19) The tight to ogorete i pubic utilly may exist Incaporenty and separaiely trern the ewnarenip of the facllae thereof, Cns can own sald facilkies Without operating them ay-a pubs uty, of Conversely, on ray opyrate 3 oublle tity without oviaing the acliet. wued (o verve the public. The devotion of propany to serve the public nny be dene: hy Mie owner, or by the person in control thereuf who ray ne, noce sea‘ly be tne owner tnuraol, A toraigtiur can own & Pubic uilliy (Tatad v, Gorcle, GR No. 114222, Apel 8, 1993), A contact of transportation Is ene whereby a Cortaln person of association of persons chiigate thamselves to transport persons, thlags, or “ews from cno place to unother for a fied price (Agbey wi, Conmontariag «nd Jurisprudence on tha Conin‘avclal Laws of tho Piuls. Value 1V;. Classifications: 4. Gommon or Mrivate; 2. Goods of Passongars; 8. For a fee/ forhire or Gratutous; + Land, Watusdmariline, oF Ae; 5, Domest! intur-istana/ coashiise ur International foreign PUBLIC SERVIDE ACT Commecwealth Act No. 146 As amoustod Note: Many-of the provisions of CA 140 have Loon repealed and ihn powsrs of the Public Servia Commisylon ary now distributed among le ciffe-ant governmant agencies, vir. DOTS, LTE, LTO, MARINA, FUG, NIC, LRU, NWKC, GAB, ATO ond PRA, Authority to Opurate Public Services Gonesa! Ruler No pubic sefsiee shall opuraty In the Piuippines wathuut possessing a valid und subsisting certlucete from the appropriate board, authority or agency of the govainiment tial took over the functions of the Fublio -Service- Commission, “cariteale of publc- convenience," ot = gopveniency and necasilty,* to tha effect that tna operation of sald service and cha authurlzation to do business wil promote tna publle inioreste in @ fropar and sulabls manna (See. 16, par. 1 CA148 a3 armunder), PUBLIC SERVICE ‘Sea. 13(b} of CA 148 as umended provities that the term *pubile sarriee" Instuces: + Every person that now of hereatter may own, operate, manage, af conita'ln the Phlipyinvs, For rire or compsnastion, ‘With general or limited clientele. ‘Whether nermanent, occasional or accidental, urposes, ay: ‘alroad, street relay, tracton roiway,' subway imoter vehicle, sina for treght or suavenger, or beh, wilh or vatnedt fed route and’ whatevar ‘ay bel cas b. Freight or carrier service of any class; & Express service, steamboat, or steamship ine, pontnes, feries, and waler erat engaged in ve transperation ‘of passengers oF freight or both; 4. Shipyard, marine relvey, marine repair shop, har’ or dock, Ice plant, tee teirigeraticn plant, canal, "Irrigation system. gas, ‘slociie, ight, heat and power, Waler supply and. power, Beticloum, saworcge system: ¢. Wire orwisieas commun cations system, wire oF Wiriass broadcasting. stators and other snlar public services Exceptions: Public i WMsiyy-pperated by ‘ ec ae eres Ye noted Roget gt Ben i i's 0 way a6 sivgMbketidRler cout eualvevlony bei UCU Aa os bird party agricullure, Soon Weds College of Lawchan peda Gottege of Katy service, for oparstion by the Intlar, for a Ienited tess afd for a specifi nuronse directly onrected wits the eullvation with his oF thelr farm; ond A. Those exptensly exempled py virtua of seciion 44, namely: a, Warehouses: UL neat amen vahiclee ant baneaa moved by oa sal e. Abships, excopt for ‘hy thing of rriaxinum raies for fare and (relat, 4 Radia companies, except for sates fving, t._ Luli serviens awnied of operate by the sgovssament, exeopt a3 0 rnin firina 1, Rapanivand cold storage (PO No. 9 an Buble markets (Gham bor. of fllpino Relators, In, v. Vilegas) PuBLic UTILITIES ‘A public ull Is a business or sutvien engayied in rogulady supplying the publi with rome cominority af worvis of pubsie consequence such 38 elecirelty, 948, water, wansprrtallon, elophione er talagrnph service (Albury v. Royts). DISUNGUISH A CERTIFICATE Oi PUBLIC CONVENIENCE FROM A CERTIFICATE OF PUBLIC CONVANIENCE AMO NECESSITY ‘A ope Is (saved whennvar tha Comission finds that tha operation ct the propetcd public servies ‘wil promote the publls Interests in prover and evilable manner, for which a municioal or ‘ozislatlve franchise is rot nacassn.y. On the iter hand, oper Is Issued pon Approval of ony Franchisa or privings. grantod by any political Subdision of the Palligpines ‘when In the Judgraant of the Commanion, stich franchise or privilege wil sroperly consrrve the oublic inierest (Pamz, Trancportation Laws art Publis Service Aet) visTINGUISH FROM n CPt. ‘A franchise 8 a gtent or privilege from Lae Sovereign fovar while the certificate is a form of faguintien thinugh an administenthr> ugency, LEGISLATIVE FR/NCHISE A certifente of pubic convenience Is not 2 Teguisite for the Ineutring ef liabitty urder the Clit Corie provisions which llabill.y arises from the moment & pareon er fin acte a commen carler ‘edthaut reyard 13 whether or rot such carrier has, vis eampled with tha requirements of the oppllertie ingulatory statute end Imslementing reguiations and bas been granted a CPC vr other feanehise (Loadstar Shhopiig % Gout of Angoals, GR No, 131627, 28 Soptembsr 1992), AOS or a CHEN constitites nnlthar a franchise ‘We ree ee MEMORY AIDIN COMMERCALLAWL ISS nor a won.raat, otters no property tah, anu is ¢ fare llerase of 2 pivilegs, The holder of saith Cortillcatn dec Mol Require a property rig 0 the route covered thereby, Not doos it confor sna. the holder any prnptietary right or interast or Hanchiae in ths publle highways, Revocatlin of this cerliferta deprives him of rio vested sion. Now aad additional burtens, ataration of the c.tiigata, of even tavocation or ancient thernof is raganved to the State (Lupwe v. Vilogas, GR No, 1.22545, 25 November 1968). itis a “property* and hes a considerable vatun fare! can lit tha aubjact of sale of attachment The Epc as a proparty cannot be taken or Interierat with without dua process of Inw (Cogna.Cuboo Cpornlors and Drivern Assn. v. CA, GI No, 10027, 18 March 1992; Raymundo v. Lunetn Motor 60, GR Nos, 39002-03, 29 November 1933) ESSENTIALS oPuIcran 4. The giantea must be a citizen “of tho Philppines or austlly slxty percent of which Io cewned by auch eltizans, 2. Tha gianteo must Lave suffclont financiat ‘ennaliily 0 undertake the servicn; and 3, Tha servico will promote publia interest, anct eosvanlence In a proper and suitably aranner, REFORE GRANTING A Note: ‘The evarrding prirciply is publie Inturast, recessily and convenience (Sundinng & Aino, Reviowor 9n Commorctal fas). GROUNDS. FOR CERTIFICATE 4. The holder wialatas or eontumaciowsly refuses to conply with any order, rulo or roquiation of the semnilselon (Sec, 6(n) o Pubic & wvica REVOCATION OF 8 Sr cooptnon mace a I ‘i com: lon Ee, Bruty " nose * 8 ig ty 2, Gok bia ane hy pectleular jatnemined by Tr190 12609 CENTRALIZED BAR OPERATIONS 4, Rofusing of naglecting to. cerry public mal) ‘upon reGuast (Secs. 18 and 19). PRIOR OR OLD OPERATOR RULE Bofore permiting @ new: operator ‘o tnvede the ‘orrory of another already establishes with @ cpo, the 'prur operator must first be given the ‘pportunity to axtund lis sorvise in erder to. muet public nauds Ia the matter of transportation. it {nganns that a publia utlity operator shoule be thlaided frum rulncus compelition by a‘fording hia the uppertunity '0 improve his equipment and seivice bolora glowing a new operator ‘0 sarvo In the same terrilory he cavers (Mandaluyong Bus 89. +: Francisco), PRIOR APPLICANT RULE Where there are various applicants for a public Ulity aver the same terrier 7, a conditions belag oquat, prorly in the bling of ine application for & corticats cf pune acvenianes bucomes an important factor in grantiny oF refusal ¢) curtiicate (Bataiyas Trumipwrtativa Co, v. Orlangs), Fut it olter goncitions, are not equal, ich pilerly Is not ordinarily of suficiart linporcance {9 contol the gearing of a certificate of convenience a4 the Commission Is authorized {a oelonnine which of the oppteante can best rmigot the raquirenants of public vonveniance (dy fos Surdos v, Pusuy Trans. Co) PROTECTION OF INVESTMENT RULE One of tte purposes of ihe Publ ¢ Survice £2 Is to protect and converve Investments which have already bacn mage for that purpose by public service operators REGISTERED OWNER RULE The reysierad ownor of a certificate of pubic convenisiice Is fabiy to the public for tha injulies ff dainages suffared by third porsons caused by tha opurhiion of said valiicle, even though the tame had been transfarrea to 4 third parson. ‘ho registered owner 6 not silowed to escape responsiolity by proving Wut a third person is Nk? ehal and ool ovr, Rowson: Ik would ba easy for him, by collision willy others. or olhurwiaw, WS eanster We espor-jbiity 19 an indafinits person, oF to 91.9 \vlio possussas 10 property widh which te respond inanenaly for tho damage or injury dorw (Ere zo, oral v, Jogta, No, L-9606, 30 Suptonsbor 1987). The registered owner iv the lavidul operator insofar as the public and this persone oe concained; consequently, i 1s directly ard priaariy "esponsibie for Ma consequences ef Tis, ‘operation. in contemplation of law, the owner! i San Beda Cellege of Lary ‘oparetur of racard is tho employer of tho driver, the actual operator ,and employer being considared as merely’ its agar’, The same principle apoiies even If the registared owner of any Vehicle does not use It for public servic fEquitadle Leasing Cop v. Suyom, GR Ne 143360, September §, 2002), or otherwis stated, to privately-ownad vehicios. REGISTERED OWNER “HAS AGAINST VENDEE/TRANSFEREE ‘A vegislered owner who. hav al transferred @ vehicle nay recourse to a third-party ccornplaint In tha same aation brosight agalnst Nim {ig recov2r for the damage of Injur’ done, against he vendee or wanalerae of he ' vehicle (Wilenvava v. Domingo, 438 SCRA 485, 2094). KABN SYSTEM ‘The kubil systera Is an acrang2mant whereby @ person wna Pas buon grunted 0 certiicate of favblic couvenience allows alher persone who own ‘motor vehicles to operule under such license, for fa fee of parceldage of auch eamings, Atnough tha parivs to cvch agreement are not oulrighty penalized by Jaw, the kabit system Is lavarlably Tecognized as being contrary lo public polcy and Lierelore vold and lnexistent under Art, 1409, New cWvl Cade (Lim v, Court of Appouls GR No. 125417, 16 Jan sary 2002). RECOURSE Efforts: 1. The transfer, salo, lease or assignment of the priviage granted Is valid between tho ‘contracting partles but not upon the public or thie parsons (Golsan v. Alday, No, L-30012, 30 Sopiombur 1987), 4. The repisered ownar is primadty tale to ai the connecuences fowing from the operations re ‘fn eat aun se Joi 4. Application Ul fy pat! dol:(_ Ba Bene Castes of Mat cont recaver for the netuel soar and the Teter cannot ablaln wranster of the vite *6 Himself, bot boing In part calicto. (veya Mivkotiy v. IAG No, L-55810, 9 March 1907). £, For tha batter pratdetian ofthe putt, beth tke tegistered owner ard the actual ownor are foirrly ans overly ible vith the driver aanwoargn Trmspnation Co. CA. No, Le 25292, 29 Noverntyr 1969), 8. The determining factor which negates the evistonee of Keuit Systern Ir the possession ft tho franchise lo opertle wad not the Tesuance of una SSE 10 Numher for bath ous lings (Raswwng Yransi! v. CA No, L-57499, 7 Jeruary 1997). Requisites (oF the Inapplicublity of the kabit evstom ‘When pretther of the parties fo tie parnicious: Kab wyatora Is being he'd ele for damages; 2. When tho ense arbre from the ragiigence af nother vonide In using ths public rond to fuhom ne raptaeataven or isn reser tation fe rogords ino ownership fd operation nessan gar jeapuay was made, 3. nen the ding public was col bothared ot tnconvonienend at the vnry east by the Weaat fanangament (Im v. CA, GP No, 125017, 18 ‘Janvsiy2002), BOUNDARY SYSTEM 4. The driver does not “ecelve a fived wage but guts only "ne uxcess of the receipt of the fares cellected by hin over the amoun he pays te the Jeep owner, 2. The gasoline consumed by te jsep is fer the account of the driver. ‘Theso to featives-are not culficlent to withdraw tho reletionship between the ownnr anu the driver from thet of amployer and emplo;e0. The: Jeepney owner I$ subsidiarly liable as emsiayor in aceardanes with Ad.102 6! PPC (Maghon \ Bomardo, No, L-16790 30 Apri 1963). Indood'to evant fram tbilty the owner of 4 public. vehlela he operates funder tha Froundory syatam* en the grcund fat he 1s a rears lester woUule be nel on'y to abut Magrent Violations et the Publis Service Law, but elto to place tha rldieg public nt the rvarcy of reaklens find trrespanaible drivers (Spouse: Humordoa v. Spounes Gols, BRN, 160886, uy 20,2704), «Tha CMH Agrenautles Beard |s expres! wulhorized by RA No.778 {to Issu0 @ Tortpornty operating primi er Corte ato of Public Gonvanien:n and Necaxslly (PALLY, CAB, GR No, 1,9524, 26 Marah MEMORY. AID IN COMMERCIAL AWW) 291 1997). + NIG exereleas regulatory power aver GATV cporators to thy exclusion of other bodies. Howaver, the physlent renktios of constructing CATV aystam ~ the uno of pote atrecta, rights of ways, the founding of atructures, and the. parceling ‘af latga regions ~ ahow an LGU a cartain Aegrss at regutation over GAT oparators., But since a generel nw ‘nigndates: thal the reguation of GATY parations shall be exorcised by the NTO, an LOU cannot ennet an ordinance for approve a resolution In vlointinn of the ani’ Jaw, LGUs must recognize Ihat technleal matters coneeming GAT operation aro within tha exclusive tagulatory power of tha NTC (Ralandas CATV v, GA, GR No, 128810, Guptamhar 26, 2004). ‘Tho. Ieglataturo has delegated to the defunct Public Sevier Commission, and presenily the: LFTRB, the power of fixing rates of pubhe services, Sut Sowhero under the provisions ftw ‘aro the rogulatory bodies, tho PSC and Ler alike, wtherlzed to dologate that power tna common carrier Mike transport operatcr, « inet public seriea (KMU Lmbor ¥, Garcia, GR Na. 116301, Docember 23, 1984). ORE CRC A t's Shite i ARAN roster GP tqariizamanly ap WIE rant hy } 2 a 3 o orvi get ian prea fe provid fe unnals Impropr Protunn pewvicn furnhahne aioe! ya Commiation392 J2u09 CENTRALIZED BAR OPERATIONS _ San Bed4 College of Has ‘Act, upon appenl or othernlsa (Sv2, 19a) Publis =» Thy following are" NOT considered Service Act, fapsungers, end aro anlled ty ordinary i aligence only: | 2, Ore who has net yet boarded ony part of a vebicle rag ardlaus of whether or not he hhas purchaaed u tccat; b. Ono who remains on a cartier for an ‘unreasonable iengln of time a:tor he han been alfurded avery safe opportunty to charger, concern aught : 3. Galtny vo of stndartu eng | pubic urvoe: ©, One who hee boarded by fraud, steath, | duslfications; * | 2. Bequirlag ‘of decolt; 4, Eelobllsiiment uf rules to | opercto — to 4. One who attempts to board: 8 moving : waoure uncuredy Of all mate furnleh Vehiclu, wthough he hes a ticket, unless . ar et “moan {ng ailampt be win th knowiedge and : 6 tuance i orca eagltig | 3, agureg. pub sonaent of the carer beeinnines ang |S oraleen 2 Bay ©, One who Las bewided a wiong vehicle, oh Imointenanes of extenslon gt | expenses | ot har oven prope ty infcimad of such fact, : ‘ral etter: sand on alighting, i ajured oy the cari } 8 Ruy rcatlon, cr moc'itication | 4. Yalwation of 1. One who rides any part of the venicia 1 erePC or 4PCNs preparil e which Is unsuitable! or uangerous or i 7. “-Suipenson uf cc er pubie vias; which he knows Is nit designéd or t OPEN, owept when at ie | 8, Gxamineilon and Intended for passungers, : nucaniay 10 ved autout | en a een fn. riots tumagy o* | sneasunng CARRIAGE , Sees ecaperses on ere | mt 6 ks Any ‘parson, partrrehip of sorparation ; then! “3 days. tay. be). Ona or spre who délvers the goods to the carer for fLdured. pio to tha herring | trp in ttkerios wuansponiation and pays the consideration un (Munzariat ¥. Ausoja, Nov be spocified In the of on whose behall payment is mado Thy B08 a Aust | euros ‘Wo'es “uid Casas on tho Law on e 1908), 7. Moitorm Transoortetior and Public Utiltlus, hes iecauning Timotwo B, Aquho & Kanon Paul L hysten Homando 200400) 8: {ueristing v. Gartlor 3) annual r@ports; Cons: oaks 4. Compete & Gonsigneo ys 5 ‘cumplianee wih ; Shioper or eny 3° person, natural or a4 ee lane and | jutidieal, 19 wom the goods are to be a | rogutations | ulivored (ibid, te pe el a 7 i i a Rane My jyngenMagra gary eral poeele stg a 1. GARRIAGE OF PASRENGERS “Sie tus ae vin: 9g HH %. Common carrier Anon LE OAT CHP LAP : Faron eoforatons, ime of Chaliiecniectun rte By assoxlatons ongagut ln *he business ob en'tylng oF Wansporing jassengers or goods “r both, by tand, water, oF aur, for compensation, olfuting thew services to the public (Art. 1792, Civil Soe). b, Passongor (One who travels tn a puiic conveyance by vinuy of ecntract, express or iniplizc, with the earrier ug 10 thy payinent of fare Or that which is actapiad as an egrivaicrit theraol (Vila, Ca Nance y. | Manta is aie Bin Rallis 1 No, H3tR, Jan. 30, ible CONN SAID g Biv, CA, No. Le "oan race, 22 Dede? stothemearsot NY transporting, us fig x WTDby land, water ora i a iif ayo Hh a3Arete Coleg at Bay (First Phitipplng Industria! Corporotion vs, CA, GR No, 125810, 24 Docombur 1997). Itis nat nocensary thet the carlagr of goeds 0. urtons be undertaken rogularly lo he considered 8 1 common Aarvor. Thus, the character of Belng 2 comman ctetter It ol aarad By chu fret tel the cartiago cf gonas wos periodic, occasional, enisodte of wischeduled (Loodsiar Shipping Co inc. v. GA, GP 134021" 28 Sept, 1969) The fof that t nas a finited clientele does not exclida Irom tha dotiniion of common cattle. Cre fs engupad in the business of tcansportng nalroieum products for hire 8 a publle employmant, Il undertakes to ca:ry for al parsons Inctfarently, tnat Is, {0 al) pereona who choose to employ is gerviees ard tranaport tha goods. hy lars! for compentation (First Philppina tnlustriat Gornorstion vs. CH, GR No, 125048, 29 Da iombor 1997), Algo 8 cormnn canler need nol hava a fixed and! publicly knewn route nor dees i neva, to main;alty lerininals 97 Issue tickets (Asta Lightoraga and Shisping, Ine ¥. CA, GR No 447246,19 Aug, 203), SUMMARY OF IMPLICATIONS ARY. 4722 ‘The character cf boing-a commen cartier in not altoceu! ragarsings ut Whether it is the principe or ancillary business: 2. The existence of a cevtiicate ef public convaniener . Whether it ‘ie ounthictes im a regular oF occasional manner; 4, The means uf transporting used, so long as it aby tand, water oF alr 5. Vinether it ls avalloula to a gener! oF Fmied elienteia, 6. Whether ft has a designated and publicly known route: 7. Wirothar it @nintnins terminals; 1. Whether i issuus a ticket, Note: A travel mgoney Is not @ common carer. ‘The dervices of a travel ageney Include procuring Uickete and faciitating travel nuimlis or visas as, well 0 booihg customers for tours iEstoin Crisostoro v, GA, GR No, 158934, August 25, 2003). PRIVATE CARTIER One whieh vithout being engaged in the buslaers of caurylng ax a public einploymen,, undariakew to deliver good: or passengers for Companaatlan (Home Insurance Cov: Anarienn Stoamship Agony, No, L+25%00, 4 Asi! 1968). MEMORY AID IN, COMMERCIALLAW 133. N Caw on obiigetionn and reontrocla ‘beet 10 Stain eguiation ‘wih parle br groupe cn Holds Pinal eit for all Ingiageminntal ee anon a Extenorcinary diigenco ts | Ordinary soqulre lo hinence Is Prove. eeinerdinery | Caro fortulo, Avi, 1174 Gilgence and AM 1734, | NEC Nat Tee TA TLL DEALS NOT NT aries rnay rot agfea on | Paras may. lint Iho Fisting tne carmar's | cao labliy, previded Hobiity —excopt hon | IU nok conten’y te In, povided ying 1. He must be ongiged In the business of a ce SOURS imber 12907) STAM A that the {ul a geno nwo: Ea GR No,194 12009 CENTRALIZED DAR OPERATIONS CONVERSION OF 4 COMMON CARRIER INTO APRIVATE CARRIER A charter party may traneform & common currer Into a private cartier, Howaver, it must be a barebout av damisu charter where th charterer mans the vessel with his own people and bacomas, In affect, thu ewner for the voyage or Sorvice stipulated (Calien Phis. v. Supicio tines ). SOMMON CARRIER DISTINGUISHED FROM TOWAGE, ARRABTRE AND NTEVEDORING Towaoe . ‘One vessel is hited {0 bring uncther vessal to anather place; rafars tu u survlce rondere: to a wossul by ‘towing for the mere purpose of expediting her voyage witheut refurence to any ‘Glroumstances of danigar. ‘Tha oparator of tha yugbout :annet ke considered @ comnenun eartie, A leg and its owners isi observe ordiner: Cliganca in ths’ performance of Ite obillgation. Undor @ contract of tewago (Liaor Sonior & Co.'s Sucvosvors v. Lu Conmpuria Martime, fo, 1962) 8¢ Avi 1906), + The exercise of ordinary prudence under a conliact of tewage mesnu ensurlig that the tugbcal is frag of mechanical problems. While Adverse weulher has clwuys baen u teal {oat ‘to maritime commerce, the eect that ‘could have been dor was fo ensure that tie {ugboais would be able to secure the barge wl alt times during the engagemont (Cargoiit Shipping, tne. v. L. Acuario Markoting Corp, GF to. 146429, 27 Juno 2006). ARRASTRE The functions of an arrastee oparuior nave niathing to do with tha Wade and tusiness of favination, aor to thy use or operation of vessels. No {6 a0 ‘bitorent from that of a depostcry or warchouseman, + It Is @ public utility, discharging funct ons which ary hoaviylavosted wth publi intarast Nature of businoss and lability 4. Similar to a wareteysuman (Lua Kien v, Mania Railvond, 21. SCRA). 2 Sinullar to a comnan cuitiar (Aovtncn Motus ¥. Prince Line, No. toi9804, 29 February 1960), 3, Solldary liablity with the commen earrioe, Note: tn order that the urrasire operator may be hold fiable the conelgney must prove that the dariage wi $ due to the negigenc2 ong wile the 99008 ure in the custody of tir crrasire operaicr a San Beds College of Law eeoeretne ee (Hartford Fira Ingurance v, E, Ruzon, Inen, No. Le £25362, 29 Dotobar 1667), Tha legal rolaticnship between the consignee and ‘he arrasire operator is akin fo that of a depositor ‘and warshouseman. Tie relationship between the consignee and the cammon caicies Is slnllar to that of the consignee and the arrastra operator, Sinca itis tha duty of the arrasira operator 1o take 0c care of tha goous that are in ita custody and {o doliver them i goed concition to the ‘consignee. such respenalbiity also devolves upon, the cattlar (Flravnan'y Fund (isurance co. \, ‘Motro Pout Survica, GR io, 89415, 24 February 1990). STEVEDORING The function of stevadores Irivolves' the loading ‘und untoading of:coastivise vesvels exling at tho port The carriugo of gouds from tho warehouse or pier {o the Holds of thu vesaol (Chior of Stal v. Cir, Nu 21608, 14 august 1987). + The (orm consists of the handing of ergo ‘com the hold of the sh'p tu the dock, In case of plorside unloading: or 10 n barge, in case f unloading at sea (Anglo-Fi Trading Comp. v. Lezare, No. L-S4968, 2 Soplomber 1983). + The leading on the ship of outgoing cargo is ‘1s part of stevedering work (Ibi), +» Duty to accept the goods; + Duty to daivgr the goods: and + Paty exes aa aig cence, a ara REE TE PG, pe! ii ed LY a partigalart Ay utp vin: runt grate a icattatirs ublic tere Bala Gpericoops re Bel ay ath (4 baker, totus oat fins Sesion sind ee us df 3% volily ep wes forte are Meets fer explores, * Goods ay fit Insportalion;eon Made Golteue of Lay 4, Control ands ot tleyal goo: 5, Goods ate Injudous tn nealtn, €. Good’ wil be exposed to untoward danger tike floed, capture hy ennmies ont thal 7, Goods tke fvastock writ be eypased to diner ses 8. Silke; and 8. Falun: 16 Conder yonds on time (Nalos fond Cages on tia Low ao teanspartotton and fbb Uillties, Aquino & Homard. 20040). In case of vartingn by tetemy, tho carder ts fevemplad trom labifly If carriage ° insisted pan, by the shipper, provided its vblecsions are s's'ad ny Eve bill of t4ding.- 8, DUTY TO DELIVER THE GOODS Not only to transport the good safely but to Gellver he gare to the erson Indieatxd In the bil of zing The quod should ho vellvered to the coatignee of any ather person to whom tha bil of lading was valu'y ransferred or nagottated. gste See sonra att be [vn n set | Set and. te Kable for y tino. which shalt Say delay, ro inatier bon | daperd en the Tales may have | espocted date of arisen. factval in tho. bt of Frais or an tha nature | f RATIO: Bxeause A I8| of gorda. resumed that the cartor 3 [right have provided 9 |2 Carrier is bound, tg Comtageney fof auich deloy | fort rd tham in cho 1 fenivcd, wf, vA, GR No. | wing ont a” tie same, er aurek 1902). | or arolar goods whied frermay. mete (0 Ine tole af Felony (Mt _ Sea Cogn of Lact Commerce). Oftkepertnd Rule = In tho shsencu of 0 fepecia! coriiract, @ carrier ia nol an lnsurat paint delay In «he traney:orintion of goods. Eftoole ofdainy: S Extunasia dala - Eutpends and gonerelly eons not eniinate the coniact of earriage. When tho ceute {s renioved, tho master must rceed with the vovage und make detvery. 2, The carter gall bo mave Mable “sae yossel or vehials fs un. ersenabiy dated. corttage _niotely MEMORY AID ity COMMERCIAL AW. ster somncing duly bound {0 avorsise stiaordisary dflgrace 4. Nabeat cisaster shall nat feo sis corner fhom retqonsibilty (04,1740, Chi or) oh 5, dey 1s without just eaug9, the coorenet Hiitlng the conmen carrier's tnbvity tannot va avaled of In cate of fons fioterration of the goods (A. '747Ciah Cock). C, DUTY TO. EXERCISE EXTRAORDINARY DILIGENCE inquiry may be made as to the natu of pasnsngar.” baggage, but beyond thls eensitutlonal houndarios ao civerviy i dungat of heing tensjressnd (Nocuy” Lagiina Tayatias Bus Co,, No, b-2972% 24 October 1989), Note:The above doctrine Is not applica to vircrats buconuse of Section o of Antsnhivskitta lune or RA 0435. DURATION OF LIABILITY Fhe duly starts from tho time the goods ts Uncondltonelly placed |1 the ponestion of, uit tecrtund 3y tho c3eler for transportaian, crt the mine ate delivated nelunlly oF caninelively WY the carrie to the consignee or fo Whe Parson whe fra the right to receive thern 1 auras tin ft Torco and aifect even wire they are winenel Mrlonded or stored in transit unions the shir" oF Gunes has mada uso. of he fight af stonwNe fanant, B continues to pa operative win the fpoodls arm temporarily unionsied or stored flanelt and exlats ever during the nie the Gard ara stored in warahouse of a cariioc atthe place OF destination “unt tha. consignee. hina penn ean of ho aro goes nn is rontonnslegopeoctOh(hy, Materntteratayyene 1 thes sane ie hot ive SF ang ty NO 7 ae we ; ie not Lisle HB en " ae uphfSgaen and couse mos fallure of 8 obligation, ‘hurne.n will vevl is396 12009 CENTRALIZED BAR OPERATIONS hI must £4 unposalbie (o foresee the event which consiivtes the ceso fortuto, or if foresaen, it must be impossible t2 avold: % Occurrence must be such as te render It Impossioie for the debtor to fulfil his gbliyation in u norraal manner, 4 Thy obliger must be free’ from any Larticiation in or the aggravation of the Inlury Tesuiting {0 tho creditor (Revlower on Commecvial Law, Surdang and Aquino, 20960); Tre natursl disnster ‘must also be th toximata and only cause of tha loss (Art. 1799 Civil Gude); £ The common egiier miuct gxarsive dus ligonca t9 pravent or minirize the loss before, durin of ater tha oceurrance of the disastar (49) and) The common carrur nas rot negigantly Incurred de'ay in wensporting ne Goods (Ant 1749, Gv Code). Note: Fira Is not sonsidured a naturul disaster 9f Salamily as Mt urigey aimost Invarably from, Som act of man “Bustorn Shipping Lites inc. WAC, ER No, 94154, 10 April 1991). Mechanical defects ary nt force méjeuna if thy vamy was dissovarably by reghiay and adequate inspections (Notes and Cases on {ha Law on Travspoitaton and Publi Uiits, ‘Aqui & Heriando, 2004 v4). A fiw blowout iv not considared as a fortuitous event. There ure_human factors nvoivud tn tha eiteaion (Yosido ¥. CA, GE ‘No, 11°08, +7 Oslabur 1997). Hamiy soas and rains are not caso fortuito, but normal eouwruncas tal an o2eun yeing Vensel would encounlur (Hastom Snpoing Linas v. CA, GR No, 415, 30 Aprl 1991) 2, AGTS OF PUBLIC ENEMY Raquit ites: 1, “Wust be the proxinaty and only eavse of Ww logs; and b. Exerise of cue ulligence to prevent ot lw thu lass Luluta, during or after at causing ig luxs, ieterioration or e atruction of the uous (Art, 1738, ibe), 3. NEGLIGENCE OF THE SHIPPER OR own @ Solv and proxininin cause: abvolute defeiso : b. Ceniributory: partial defansy (An 1741, icy 4, CHARACTER OF THE -Goops oR DEFECTS IN THE PACKING OR IN THE CONTAINER Even ifthe damage should be ceused by the inherent detuol character of ire goods, the ‘Sommon carrier must oxercise due dilyunce {0 forestall or lesan the lose (Art..1742, toi). The cecriee which, kaowly the fact of imnproper packing cf tha geacs upon ouiny abservition, ail acseple the gues ‘otwitstanding svch cordon, i not releved of iaby or loss ar Iniry resutng theret-om (Soullarn Lives, lnc. ¥. CA, L-16629, onary 54, 1982), 4, ORDER OF. ACT OF PUBLIC AUTHORITY Said public Wulr erty must hcve the puviar to Issue" the oraur (Ard 4749) bid) Consequeity, where the officer acts without {opti procuss, the commen varrier will be held labia (Ganzon v, GA, No, L-“8757, 90 May 1908). : Nota: Tis Lat Is EXCLUSIVE. If not one of those snumerated defenses bs present, the carrier is labio, ‘ Hijacking Ip not _amung the enumerated exempting ckeumslance, Thus, tne common, Carter I: presumed to be at fault or to have ucled ‘negligently unless thace is proof cf extraordinary ulljence on the part of the common carer Under Art. 4746 (8), @ common eariar ish forponsivie even tur acts of strangers like thi of robbers 28 ‘COpt whore JAleves OF r sbbers acted “wlth grave or keslstble threzt, violence or furco."(De Gveman,-v, 2A, L-47822, Decombor 22, 1980. ty to Febsah vd BUiribse io anata vodbe OF Lavy + Yeh topchesare-s} ge enya feat Rigg i ee a Cid Hin Bedq College of Yaw_Aign enn College of Hain Injuries suffered wy bonding poesengers ronuting from ‘he swiden abating up oF ferking. | of thot tonuaynnces » (Onrinien Transporation Co. toa. v. Grvrt of /prea', GR No, 96882, 7 Setob. 1991). he duly eins fom the moranat the person who purchated the ficrat or oven parents Ninself at the proper place and in a oruper manner fo bi transozried, having the bona fide intention 10 ure the facilities of the carrice (losuse Vio da Nyara, at al. v. Tho Mui Rallrond Company, CANo, 31731, 1966) ‘The duly continues until tie pu asenger has, nflee reaching his dasinatiun, safely allghtod form the carer's conveyance of has had 0 srasanable opponunity to save the carer's proinlses ard to Inok alter hie bagguce. and ‘prepare for Nig Uasncture, The duly of @ conimon eatrlyr to provite safely to its pascongers uo «biigates It not enly 6tting the course of tha trip, bul for so Tong ne ch3 posaurmars ace “thin its premises ‘and where they cught to te in pursuance to the conkact of varringe (LATA v. Novidad, Gt Nu, 148800, 6 Fabruary 2002). A common —earint —cwwuld exercsa extrasrdnary diligence evn) ae 10 non-paying ossengers. E, DUT? TO TAKE CARE OF THE PASSENGERS’ BAG: fatiganen af 8 dspesiory lerainny eigenen Eee TAU LAR ah hb SEITEN OF iis Pee) li Pint Fa The _pilinury’ defense Ie the exercise of EXTRAORDINARY DILIGENCE, ‘Tho cortler Is Hable for the 01s of its employees. ‘The cetflue cannol escape llebllity by claiming that Ieexetelsad due dligaace ky tne election and supervision of employnes. IIe no defense that the emplyree acted beyond AMORY AID IN COMMERCIAL L/W] 197 the scope of his Authority becnute the Fitting publis I1 Rol evpectod to Inquire from time to tine, afro thay boat the enreieg, whether oF nat tha evar fa adtiny within the scope of lik nuttorlty ‘ard otmarungs the existing rulas anil regulations Foquited af him by management (Marctan v. Moricts2a, Mo, (+2471, 30 April 1966), The negligence of tho carrler NEED NOT bo the sole cause of tha damage or injury (2 the passengarcr the goods. Tho concurrent negligence of # third serson wll not exempl the common carrier from responsiblity, Hiahiilty et 8 Common Carrer for death or injuring to pnarangars duo to acts of ita ‘omplayens and othor pasrongors or strangors rE He LS LURAY empioved tutt boon | by Art 1713 of ho Chl ‘a the tina of the act | Code Pilganea in the golaction ancl supervinen uf fempoyens under Artiely 2180 of tha Civ) Goes cannat bo Interpasad as a dainoae by the common carrlor hecausa the liabiity of thn « wtler arieos from the bronch of the contract af enitinga, ‘Tho defense under sold arilcle Is appicabin to Jelg,under Ait, 21,°8 (Dor AENQENDABZ 7 March es yg ss RODUBESE on ate slat. ebob dle tating na aL ie v Tabla to a nngllgant 1. has heen qiosey Prodi v, i 929)1298 |2009 CENTRALIZED BAK OPERATIONS negigant whora he shoulé hnve bgen eware of it In tho roweonable exarcino of due care eud had in {fact on opportunity later than tnat of tne olaintt to ‘avoid an accident, Piinciple of *Lasy Cléar Chance" applies in a sult Benwgen the owe One divers cf colliding vel IK doos NOT upply where a passenger demands tevpenslbldty from the carrier to enforce Its ‘contractual obligation, For It would be inequitable ta exempt the neghgont driver of the Jeepney and lis owners on tha ground that the other driver was Hkowlse uly of negligunes (Pni, Rabbit Bus Unos.r, JAC, GR NO. 119064, 7 Augus! 1908: Tu ¥. Airlisgade, GR No, 196060, 1 Soplembar 2004), * Dectrlne of Last Clear Chance CANNOT likowisw ‘bg apelied in calision of vussell. hocause of Art. 827 of thu Code of Commerce (Noles ard Cusos ‘un the Law on Transportation @ 1d Pubic (titles, Aquino & Hernando, 2004 09). ‘ASSUMPTION OF RISK Passengers must take guch risks snevient to the mode af raval Carrlurs aro NOT Inwurars of tho ves of dhol: passongars, + Acoritnan cuitier dus avi give iy eansert to Yeoome an Insurer of any and all risks t0 passsingere and gouds. i merely undertake to pertoomn eartain duties to the pul law imposes, and holds iisaif lable for any brauch thereof (Papi! v. CA, GR No. £2469, Dacumbor 22, 1903). + Thus; In alr travel, wdsorsv weather concitions ‘of extreme climatic changus arc soms ol te perils Lwwolvad in ale aver, the conswae ico Of which the guayengor must wssunie. or epost (opon Allings vw CA, GR No, 1786.4, 7 August 1996) + However, there Is no wusumptlon of fis. by thy pastenger wien thy common sarrier folod to exercise extraordinary diiyence, Thus in the case of Colas vs. CA (GR No. 122038, 31 May £000) the Court held that them wai ne such assyinption of isk whare + thy cater was. fod to capacit wed the passenger wise given an “extension seat”, 1 ep Ge 4, ‘The chipper Is also obliged to exercise DUE. DILIGENCE in avolding damage or injury. 2, Wit ragpect to carriage of passerge s, tht as Su Beda College of Law sald ‘passongors aro lkevise bound to ‘observa DUE DILIGENCE lo avoid injury. * The contibutory nagigenca on the part of the pussenger te NOT a dstense that wil excuse tho Carer om Habilty, it wil only miigate, such Hablity, HOWEVER, the cantar may be able to prove that the only eavee of Uo oss of Ihe goods Is any of tho (lowing acta of tho ahlpper ‘i falluro of the shippar to disclose the naturn of the g2o 3, improper’ marking ..or dieacton av to ostinalony and 3, improper loading when ho _ussum.a auch responsiblity (Frarclsgo, pp 77-81). ‘Tho shipper must likewise sao to it hat the goods ara properly packed; alherwisa, ilablity of the anier may be mitgalud or barred depending on the elrcumatanese. Tog matter of quantity, description and conditions fof the cargo Inside the container is the sole responstbilily of the shipper, unless there is ipulatior to the contrary (US Lines v. Comm of Customs, No, 1-73490, 14 Jvne 1987; Royma Biokerage Vv. Pal, Konia Assurance, GR No. 93464, / Octovur 1991) GERRARD TDL NTT REQUIREMGNT OF EXTRAORDINARY DIUGENCE Rundition of service with: the greatest skit! and uimosl foresight (Oevao Steveuora Co. Fumandoz, 64 0.6. No. 8, 1957). CE fusioe Sly esae ‘a'special pyrite 1 we Caniar's Fa cegiee of diigence extraordinary with respect to g ee en Tit