TRANSPORTATION LAW 3.
3. Must undertake to carry by the
CHAPTER I
1753 of the Civil Code
The law of the country to which the
goods are to be transported shall govern
the liability of the common carrier for
their loss, destruction or deterioration.
COMMON CARRIER
- 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.
- One who holds out of the public
as engaged in the business of
transporting persons or
property from place to place,
offering his services to the
public generally.
Test in determining whether party is
a common carrier
1. Must be engaged in the
business of carrying goods for
others as a public employment,
must hold himself out as ready
to engage in the transportation
of goods for person generally as
a business and not as a casual
occupation.
2. Must undertake to carry goods
of the kind to which business is
confined
under the provisions of the civil code
method by which his business is
conducted and over his
established roads
4. Transportation must be for hire
Examples of Common Carrier
1. Trucking Service
Transporting goods by land, through its
trucking service.
2. Custom Broker
Transportation of goods being an
integral part of its businesses. Deliver of
goods for pecuniary consideration.
3. Pipeline
Engaged in the business of transporting
or carrying goods, ie., petroleum
products, for hire as public employment.
Pipeline concessionaire that is engaged
only in transporting petroleum products
is considered as common carrier.
4. Barges
Common carrier whether its carrying of
goods is done on an irregular rather
than scheduled manner and is only
limited cliente.
A common carrier need to have a
fixed and publicly known routes.
Neither does it have to maintain
terminals or issue tickets.
5. Carrying of Goods not the principal
occupation
Certificate Of Public Convenience is not
a requisite for incurring of liability
Such restrictive interpretation would
governing common carriers.
Liability arises the moment a person
or firm acts as a common carrier,
without regard to whether or not
such carrier has also complied with
the requirements of the applicable
regulatory statute and implementing
regulations and has been granted a
certificate of public convenience or
other franchise.
6. Charter Party
Contract by which an entire ship, or
some principal part thereof is let by the
owner to another person for a specified
time or use; contract of affreightment by
which the owner of the ship lets the
whole or part of her merchant for the
conveyance of goods on a particular
voyage, in consideration of the payment
of freight.
2 types
1. Contract of affreightment
- Use of shipping space on
vessels leased by the owner in
part or as a whole.
2. Charter by demise
- Whole vessel is let to the
charterer with transfer to him
of its entire command and
possession and control over its
navigation, including the
master and the crew who are
his servants.
-
7. Though with a limited clientele
CM COLLEGE OF LAW 2018 - Cloie Anne C. Sulla, RC
make easy for a common carrier to
escape liability by the simple expedient
of entering into those distinct
agreements with clients.
8. Distributor of Electricity
Distribution of electricity to end-users
shall be a regulated common carrier
business requiring a national franchise.
Examples of what are not common
carrier
1. Rendering exclusively for a particular
person and no other.
2. Single Transaction
3. Travel Agency
- making travel arrangement in
others behalf
4. Towage
5. Arrastre and Stervedoring
Common carriers bound to carry
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.
Extraordinary diligence required of
common carrier demands that they
take care of the goods or lives
entrusted to their hands as if they
were their own.
Presumption of negligence
1. Goods
Common carrier are presumed to be at
fault or to have acted negligently, unless
they prove that they observed
extraordinary diligence.
2. Passengers
Death of or injuries to passengers,
common carriers are presumed to have
been at fault or to have acted
negligently, unless they prove that they
observed extraordinary diligence.
When the action is based on contract
of carriage and not of tort, the court
need not make an express finding of
fault or negligence on the part of the
carrier in order to hold it responsible
to any damages sought for by the
plaintiff.
Liability of common carrier based on
quasi delict
Owners and managers of an
establishment or enterprise are likewise
responsible for damages caused by their
employees in the service of the branches
in which the latter are employed or on
the occasion of their functions.
Liability of the employer-common
carrier is its negligence in the selection
and supervision of its employees.
Burden of proof
Common carrier must prove that it
exercised extraordinary diligence in
order to overcome the presumption, the
plaintiff must still before the burden is
shifted to the defendant, prove that the
subject shipment got lost, destroyed or
deteriorated.
CHAPTER II- VIGILANCE OVER THE
GOODS
Common Carriers, from the nature if
their business and for reasons of
public policy, are bound to observe
extraordinary diligence in the
vigilance over the goods and for the
safety of the passengers transported
by them.
- Receive by the carrier for
transportation until delivered
to, or until the lapse of a
reasonable time for their
acceptance by the person
entitled to receive them.
Exempting Causes
1. Flood, storm, earthquake, lightning or
other natural disaster or calamity
2. Act of public enemy in war,
international or civil
3. Act or omission of the shipper or
owner of the goods
4. Character of the goods or defects in
the packing or in the containers
5. Order or act of competent public
authority
When the nature of the obligation
requires assumption of risk, no
person shall be responsible for those
events which could not be foreseen,
or which, though foreseen were
inevitable.
Force Majeure
Generally applies to a natural accident,
such as that caused by a lightning, an
earthquake, a tempest or a public
enemy.
Hence FIRE not considered natural
disaster or calamity.
Common Carrier held responsible
except; where such thieves or robbers
acted with “grave or irresistible
threat, violence or force”.
Not caso fortuito
1. Mechanical defects
2. Tire explosion
3. Mishap caused by defective breaks
4. Strong winds, ordinarily vicissitudes
of a sea voyage
5. Hijacking of the carrier’s truck
Contributory Negligence
Shipper or owner merely contributed
to the loss, destruction, deterioration
of goods, the proximate cause thereof
being the negligence of the common
carrier, the latter shall be liable in
damages which however shall be
equitably reduced.
When buyer of goods becomes
insolvent, the unpaid seller who has
parted with the possession of the
goods has the right of stopping them
in transitu.
Stipulation for limitation of liability
1. In writing signed by the
shipper/owner.
2. Supported by a valuable
Consideration.
CM COLLEGE OF LAW 2018 - Cloie Anne C. Sulla, RC
3. Reasonable, just and not contrary to
public policy.
Void Stipulations
1. goods transported at the risk of the
owner or shipper
2. Common carrier will not be liable for
any loss, destruction or deterioration of
the goods.
3. Common carrier need not observe
extraordinary diligence in the custody of
good.
4. Common carrier shall not be
responsible for the acts or omission of
his employees.
Stipulation of Private Carrier
Stipulation excepting the owner from
liability even for the negligence of its
agents is valid.
CHAPTER III
A common carrier is bound to carry
passengers safely as far as human
care and foresight can provide, using
the utmost diligence of every
cautious persons, with due regard for
all the circumstances.
Passengers have the right to be
treated by the carrier’s employees
with kindness, respect, courtesy and
due consideration. Entitled to be
protected against personal
misconduct, injurious language,
indignities and abuses from such
employees. Discourteous conduct of
part of these employees towards a
passenger gives the latter an action
for damages against the carrier
Torts/ Quasi Delict
- Liability is primary and can only be
negated by showing due diligence in the
selection and supervision of the
employee, a factual matter that has been
shown.
Common Carrier
- cannot be negated because there is
already a presumption that employer is
presumed at fault or negligent.
- limiting the liability of the common
carrier to a degree less than
extraordinary diligence will not apply to
passengers. There can never be
stipulation to exempt the carrier from
exercising any degree of diligence less
than extraordinary diligence required.
Passenger carried gratuitously
- Stipulation limiting the common
carrier’s liability for negligence is valid,
but not for willful acts or gross
negligence.
(surreptitiously boarded, common
carrier cannot be held faulted.)
La Mallorca vs CA
The relation of the common carrier and
passenger does not cease at the moment
the passenger alights from the carrier’s
vehicle at a place selected by the carrier
at the point of designation, but
continues until the passenger had
reasonable time or reasonable
opportunity to leave the carrier’s
premises.
Dangwa Trans vs CA
When bus is not in motion there us no
necessity for a person who wants to ride
the same to signal his intention to
board. A public utility bus, once it stop,
is in the effect making continuous offer
to bus riders.
Premature acceleration of the bus in this
case was a breach of such duty.
By stepping and standing on the
platform of the bus, is already
considered a passenger and is entitled
all the rights and protection pertaining
to such a contractual relation.
Aboitiz Shipping vs CA
Relation of the carrier and the
passenger continues until the passenger
has landed at the port of destination and
has left the vessel owners’ dock or
premises. The relationship will not
ordinarily terminate until the passenger
has, after reaching his destination, safely
alighted from the carriers conveyance
or had a reasonable opportunity to
leave the carrier’s premises.
This includes reasonable time to see
after his baggage and prepare for his
departure.
(cited La Mallorca)
Duty of Passengers and Contributory
Negligence
Contributory negligence does not bar
recovery of damages for his death or
injuries, if the proximate cause thereof
is the negligence of the common carrier Registered Owner (principal) – liable
but the amount of damages shall be without prejudice for right for
equitably reduced. reimbursement
Kabit (agent) - pay reimbursement to
Age, sex and physical condition of the principal.
passenger must be considered.
Boundery System
Isaac vs A.L. Ammen Trans. Registered owner allows other to use as
It is true that such contributory a lessee.
negligence cannot relieve the common Labor Law- there is employer –
carrier’s liability but it will only entitle it employee relationship
to a reduction of the amount of damage.
Owner – Primary Liable, may seek for
Other Passenger and Strangers reimbursement to the driver
Common carrier is responsible for Driver- pay for reimbursement
injuries suffered by a passenger on
account of the willful acts or negligence CHAPTER IV- BILL OF LADING
of other passengers or of strangers, if
the common carrier’s employees Bill of Lading
through the exercise of the diligence of a Written acknowledgement of the receipt
good father of a family could have been of goods and an agreement to transport
prevented or stopped the act or and to deliver them at specified place to
omission. a person named or on his or her order.
- Receipt for the goods shipped
Common carrier was liable for the and a contract to transport and
failure to take necessary precautions deliver the same as therein
against the approaching typhoon of stipulated.
which it was warned, resulting in the - Receipt recites;
loss of the lives of several passengers.  Date
Vasquez vs CA  Place of shipment
 Describes goods as to
KABIT System quantity
Arrangement of public convenience  Weight dimensions
allows to operate under his license  Identification marks
for a fee.  Condition
 Quality
Registered Owner Rule applies;  Value
CM COLLEGE OF LAW 2018 - Cloie Anne C. Sulla, RC
 - It names contracting parties,
include the consignee, fixes the
route, destination and freight
rate or charges; stipulates the
rights and obligations assumed
by the parties.
Only binding upon the parties who
make them, their assigns and heirs.
Issuance of bill of lading carries the
presumption that the goods were
delivered to the carrier issuing the
bill for immediate shipment and it is
nowhere questioned that the bill of
lading is a prima facie evidence of the
receipt of the goods by the carrier.
As a contract of adhesion
Provisions at the back of the bill of
lading, in fine print, is a contract of
adhesion.
Generally, contract of adhesion are
considered void since almost all the
provisions are prepared and drafted
only by one party, usually the carrier.
The only participation left of the other
party is affixing of his signature thereto.
Bill of Lading may be issued to bearer, to
order, or in the name of a specific
person, and must be signed 24 hours
after the cargo has been received on
board.
After the cargo has been delivered, the
bills of lading which the captain signed
or at least the copy by which the
delivery is made shall be returned to 1. Within 10 yrs for breach of written
him with the receipt for the contract.
merchandise. 2. 6 yrs upon oral contract
3. 4 yrs for quasi delict
Period of filing claims
Within 24 hours following the receipt of
the merchandise, the claim against the
carrier for damage or average be found
herein upon opening the packages may
be made provided that the indications of
the damage or average which gives rise
to the claim cannot be ascertained from
the outside part of such packages, claim
shall be admitted only at the time of the
receipt.
After the periods have elapsed or the
transportation charges has been paid,
no claims shall e admitted against the
carrier with regard to the condition in
which the goods transported were
delivered.
Damage Apparent
- immediately
Damage not Apparent
- within 24 hours
Period Of Filing Actions
Ship shall be discharged from all liability
in respect to los or damage unless suit is
brought within 1yr after delivery of the
goods or the date when the goods
should have been delivered.
Civil Code – not applicable for
misdelivery or conversion
CM COLLEGE OF LAW 2018 - Cloie Anne C. Sulla, RC