I.

DEFINITION OF TERMS

What is a common carrier?

Under Art. 1732 of the NCC, common carriers are persons, corporation, firms or
associations engaged in the business of carrying or transporting passengers or goods
or both, by land, water, or air, for compensation, offering their services to the public.

What is a private carrier:

A private carrier is one who, without making the activity a vocation, or without
holding himself or itself out to the public as ready to act for all who may desire his or
its services, undertakes, by special agreement in a particular instance only, to
transport goods or persons from one place to another either gratuitously or for hire.

Tests of common carrier:

The test for determining whether a party is a common carrier of goods is:
1) He must be engaged in the business of carrying goods for others as a public
employment, and must hold himself out as ready to engage in the
transportation of goods for persons generally as a business and not as a casual
occupation;
2) He must undertake to carry goods of the kind to which the business is
confined;
3) He must undertake to carry by the method by which his business is conducted
and over his established roads; and
4) The transportation must be for hire.
(First Philippine Industrial Corporation vs. Court of Appeals, 300 SCRA 661, G.R. No.
125948, 29 December 1998)

1|Page
 II. GOVERNING LAWS

By Land
1) NCC—primary law;
2) Code of Commerce—suppletory; and
3) Special Laws—suppletory.

By Sea
1. Coastwise Shipping
a. Primary Law: Civil Code (CIVIL CODE, Arts. 1732-1766)
b. Code of Commerce applied suppletorily in the absence of Civil Code
provisions
2. Carriage from Foreign Ports to Philippine Ports
a. Primary Law: Civil Code
b. Code of Commerce governs all matters not regulated by the Civil Code
(National Development Co. v CA, GR No. L-49407, August 19, 1988)
c. Carriage of Goods by Sea Act applied suppletorily to the Civil Code
(National Development Co. v CA., supra)
3. Carriage from Philippine Ports to Foreign Ports
Laws of the country to which the goods are to be transported (CIVIL CODE.
Art. 1753)
By Air
1. New Civil Code provisions on Common Carriers
2. Civil Aviation
a. governed by R.A. 9497 also known as the Civil Aviation Authority Act of
2008
b. Civil Aviation Regulations issued by the Civil Aviation Authority of the
Philippines (CAAP)
c. As to economic regulation of air transportation – R.A. 776, regulations
issued by the Civil Aeronautics Board
3. Treaties and Conventions
a. Warsaw Convention – liabilities of the carriers in international
transportation by air
b. Chicago Convention (signed on December 7, 1944) – Convention on
International Civil Aviation, establishes rules of airspace, aircraft
registration and safety, and details of the signatories in relation to air
travel

2|Page
III. OBLIGATIONS OF A COMMON CARRIER
By Land
1) Accept the passenger or goods without discrimination;
 (such acceptance without discrimination is a condition in the certificate of
public convenience)
 Exceptions:
a) If the cargo is hazardous in nature;
b) If it is a contraband or illegal cargo;
c) If the cargo would cause an overloading;
d) Livestock exposed to diseases;
e) The agreement stipulates a time when the cargo would be loaded and
it was not complied with.
2) Deliver the goods or person safely on time at the agreed destination;
 If there is a stipulation as to the date of delivery, it must be delivered on that
day.
 The nature of the cargo must also be considered, e.g., perishable goods.
3) Bound to observe extraordinary diligence in the vigilance over the goods according
to all the circumstances of each case;
4) Bound to carry the passengers safely as far as human care and foresight can provide,
using the utmost diligence of very cautious persons, with due regard for all the
circumstances. or the safety of the passengers transported by them, according to all
the circumstances of each case.
5) Must observe due diligence to prevent or minimize loss before, during and after the
occurrence of flood, storm, other natural disasters, or act of public enemy.

When does the extraordinary responsibility of common carriers begin and end?
Under Art. 1736 of the NCC, the extraordinary responsibility of the common carriers
lasts from the time the goods are unconditionally placed in the possession of, and
received by the carrier for transportation until the same are delivered, actually or
constructively, by the carrier to the consignee, or to the person who has a right to
receive them, without prejudice to the provisions of Art. 1738.

By Sea
1. Duty to observe outmost diligence to passengers (CIVIL CODE. Art. 1755)
2. Duty to accept passengers without discrimination
3. Duty to take care of passenger’s baggage
4. Duty to transport passenger safely to the agreed destination
5. Duty to seasonably bring the passenger to the destination

3|Page
 DILIGENCE REQUIRED OF A COMMON CARRIER
1. Extraordinary Diligence in the carriage of goods (CIVIL CODE, Art 1733)
2. Extraordinary Diligence in the carriage of passengers (CIVIL CODE, Art.
1755)
A common carrier is bound to carry passengers safely as far as human
care and foresight can provide, using the utmost diligence of very cautious
persons with a due regard for all the circumstances

By Air
Obligations of the Carrier

1. Accept passengers and goods without discrimination

2. Seasonably deliver the goods or bring the passenger to the destination
3. Deliver the goods or bring the passenger to the proper place or destination
4. Deliver the goods to the proper person
5. Exercise extraordinary diligence in the performance of its duties

Duties of the Carrier

1. Payment of Freight
2. Take care of the passenger’s baggage
3. Observe utmost diligence to passenger
4. Take proper route

4|Page
IV.

IV. CASES ON OBLIGATIONS OF A COMMON CARRIER

By Land

When does the extraordinary responsibility of common carriers begin and end?

Under Art. 1736 of the NCC, the extraordinary responsibility of the common
carriers lasts from the time the goods are unconditionally placed in the
possession of, and received by the carrier for transportation until the same are
delivered, actually or constructively, by the carrier to the consignee, or to the
person who has a right to receive them, without prejudice to the provisions of
Art. 1738.

A public utility vehicle, once it stops, is in effect making a continuous offer to

riders. Such riders must have a bona fide intention to use the facilities of the
carrier, possess sufficient fare with which to pay for his passage, and present
himself to the carrier for transportation in the place and manner provided. If
he does not do so, he will not be considered a passenger and the carrier does
not owe him extraordinary diligence.

It is the duty of carriers of passengers to stop their conveyances for a

reasonable length of time in order to afford passengers an opportunity to
board and enter, and they are liable for injuries suffered by boarding
passengers. (Dangwa Transportation Co., Inc. vs. Court of Appeals, 202 SCRA
575, 7 October 1991)

Once created, the relationship will not ordinarily terminate until the
passenger has, after reaching his destination, safely alighted from the carrier’s
conveyance or has had a reasonable opportunity to leave the carrier’s
premises. All persons who remain on the premises within a reasonable time
after leaving the conveyance are to be deemed passengers, and what is a
reasonable time is to be determined from all the circumstances, and includes
reasonable time to look after his baggage and prepare for his baggage and
prepare for his departure.

Is a school bus operator a common carrier?

YES. The operator of a school bus is a common carrier because he holds himself
out indiscriminately as ready to transport students of a particular school living

5|Page
 within or near the area where he operates the service, and for a fee. (Perena
vs. Zarate, 679 SCRA 208, 29 August 2012)

What about pipeline operators?

YES. One is a common carrier if it is engaged in the business of transporting or
carrying goods, i.e., petroleum products, for hire as a public employment. It
undertakes to carry for all persons indifferently, that is, to all persons who choose to
employ its services, and transports the goods by land and for compensation. The fact
that the carrier has a limited clientele does not exclude it from the definition of a
“common carrier.”

The definition of “common carriers” in the Civil Code makes no distinction as to the
means of transporting, as long as it is by land, water or air. It does not provide that
the transportation of the passengers or goods should be by motor vehicle. (First
Philippine Industrial Corporation vs. Court of Appeals, 300 SCRA 661, G.R. No. 125948,
29 December 1998)

By Sea
EXTRAORDINARY DILIGENCE IN CARRIAGE BY SEA
Seaworthiness
1. The fitness of the vessel itself to withstand the rigors or vicissitudes of the
voyage;
2. Fitness of the vessel to store the cargoes and accommodate passengers to
be transported;
3. That the vessel is adequately equipped and properly manned with a
sufficient number of competent officers and crew
Warranty of Seaworthiness of Ship - implied
A passenger or a shipper of goods is under no obligation to conduct an
inspection of the ship and its crew; the carrier is obliged by law to impliedly
warrant its seaworthiness.
Persons transacting with common carriers are not expected to inquire into
the vessel’s seaworthiness, genuineness of its licenses and compliance with
all maritime laws.
Unseaworthiness
The unseaworthiness can be established by the fact that it did not withstand
the natural and inevitable action of the sea (Loadstar Shipping Co. v CA, GR
No. 131621, September 28, 1999)

6|Page
 Cargoworthiness
Ship must be sufficiently strong and equipped to carry the particular kind of
cargo which she has contracted to carry and her cargo must be so loaded that
it is safe for her to proceed on her voyage
OBLIGATIONS OF SHIPPER, CONSIGNEE AND PASSENGER
1. The shipper and the passenger are also obliged to observe due diligence to
avoid damage or injury (CIVIL CODE, Art. 1761)
2. The shipper and the passenger are bound to pay the consideration in the
form of freight or fare
By Air

***

7|Page