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Transpo Reviewer ABM PDF
Transpo Reviewer ABM PDF
2 TYPES OF CONTRACT OF CARRIAGE OF PASSENGERS Delivery to a lighter vessel also commences the contract of carriage
• Delivery to a lighter in charge of a vessel for shipment on the vessel, where it is the
1. CONTRACT TO CARRY custom to deliver in that way, is a good delivery and binds the vessel receiving the
• Consensual contract and perfected my mere consent freight, the liability commencing at the time of delivery to the lighter
• An agreement to carry the passenger at some future date • Where there is a contract to carry goods from one port to another, and they cannot
be loaded directly on the vessel and lighters are sent by the vessel to bring the
2. CONTRACT OF CARRIAGE / COMMON CARRIAGE goods to it, the lighters are for the time its substitutes, so that the bill of landing is
• Real contract applicable to the goods as soon as they are placed on the lighters.
• For not until the facilities of the carrier are actually used can the carrier be said
to have already assumed the obligation of the carrier Bill of Lading not indispensiable in the creation of contact of carraige
GR: Code does not demand the bill of lading, as necessary requisite in the contract of
transportation, the delivery of the bill of lading to the shipper
CONTRACT OF CARRIAGE OF GOODS
• Consensual contract to carry goods whereby carrier agrees to accept and XPT: the shipper to mutually demand of each other the delivery of said bill (Article 350 of the
transport goods at some future date Code of Commerce)
• Perfection: Act of delivery of the goods that is, when the goods are unconditionally
placed in the possession and control of the carrier and upon their receipt by the
carriage for transportation, the contract of carriage is perfected. BRITISH AIRWAYS, INC. v. COURT OF APPEALS
218 SCRA 699, February 09, 1993
Written Contract Not Essential
• Presence of bill of lading not necessary for the perfection of contract
LUZON STEVEDORING CO., INC. v. PUBLIC SERVICE COMMUNICATION XPT: where such thieves or robbers in fact acted "with grave or irresistible threat, violence or
93 Phil. 735, September 16, 1953 force"
The occurrence of the loss must reasonably be regarded as quite beyond the control of the
Philippine Shipowners Association: corporations duly organized and existing under the laws of common carrier and properly regarded as a fortuitous event
the Philippines,
• mainly engaged in the stevedoring or lighterage and harbor towage business The Civil Code defines "common carriers" under Art. 1732.
• interisland service nsists of hauling cargoes such as sugar, oil, fertilizer and other 1. Principal / ancillary - No distinction between one whose principal business activity is
commercial commodities which are loaded in their barges and towed by their the carrying of persons or goods or both, and one who does such carrying only as
tugboats an ancillary activity (in local Idiom as "a sideline")
Route: Manila to various points in the Visayan Islands, particularly in the Provinces of Negros 2. Regular / scheduled - Carefully avoids making any distinction between a person or
Occidental and Capiz, and from said places to Manila. 1/2 per bag or picul of sugar enterprise offering transportation service on a regular or scheduled basis and one
offering such service on an occasional, episodic or unscheduled basis.
Whether a Firm or Company is a Pubilc Utility. 3. General / lmited - offering its services to the "general public," i.e., the general
• Public Utility - even where the term is not defined by statute, is not determined by community or population, and one who offers services or solicits business only from a
the number of people actually served. Nor does the mere fact that service is narrow segment of the general population.
rendered only under contract prevent a company from being a public utility.
• Causal or incidental service - devoid of public character and interest is not brought Section 13, paragraph (b) of the Public Service Act, "public service" includes:
within the category of public utility. The demarkation line is not susceptible of exact a. ... every person that now or hereafter may own, operate, manage, or control in the
description or definition, each being governed by its circumstance. Philippines, for hire or compensation, with general or limited clientele, whether
permanent, occasional or accidental, and done for general business purposes, any
The transportation service which was the subject of complaint was not casual or incidental. It common carrier, railroad, street railway, traction railway, xxx.
had been carried on regularly for years at almost uniform rates of charges.
A certificate of public convenience is NOT a requisite for the incurring of liability under the
The Public Service Law Civil Code provisions governing common carriers.
• Was enacted not only to protect the public against unreasonable charges and
poor, inefficient service, but also to prevent ruinous competiton.
LIMITED CLIENTELE
Although the clientele is limited, the regularity of the activities of a carrier may indiciate that
ANCILLARY BUSINESS (“sideline”) the same carrier is a common carrier.
Article 1732 makes no distinction between one whose principal business activity is the carrying
of persons or goods or both, and one who does such carrying only as an ancillary activity Example:
• brokerage
• bus service to schoolchildren
• customs broker
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 5
• shipping company, 2. Charter by demise or bareboat charter, by the terms of which the whole vessel is let
• Asia Lighterage v. CA – carrying goods through its barges even it no fixed and to the charterer with a transfer to him of its entire command and possession and
publicly known route, maintains no terminals and no tickets. consequent control over its navigation, including the master and the crew, who are
• Shuttle trains without fee in the airport (but in NCC no) his servants.
Article 1734 of the New Civil Code provides that common carriers are not responsible for the
MEANS OF TRANSPORTATION loss, destruction or deterioration of the goods if caused by the charterer of the goods or
FPIC v. CA – thru pipelines defects in the packaging or in the containers.
The Code of Commerce also provides that all losses and deterioration which the goods may
EFFECT OF CHARTER PARTY suffer during the transportation by reason of fortuitous event, force majeure, or the inherent
defect of the goods, shall be for the account and risk of the shipper, and that proof of these
How to transport a common carrier to a private carrier? accidents is incumbent upon the carrier
It must be a bareboat or demise charter where the charterer mans the vessel with his own
people and becomes in effect the owner for the voyage or service stipulated. COMMON CARRIER DISTIGNUIED FROM PRIVATE CARRIER
• Lies in the character of the business,
• Even if the undertaking is a single transaction and not a part of a general business or
PLANTERS PRODUCTS, INC. v. COURT OF APPEALS occupation, although involving the carriage of goods for a fee, the person or
226 SCRA 476, September 15, 1993 corporation offering is a private carrier
SUMMARY: Misubishi chartered KKK. Goods contaminated -- short of 94.839 M/T and about 23 What is a private carrier?
M/T were rendered unfit for commerce. KKKK remained a public/common carrier A private carrier is one who, without making the activity a vocation, or without holding himself
notwithstanding the charter party because the agreement was a time-charter, which did not or itself out to the public as ready to act for all who may desire his or its services, undertakes,
divest the shipowner of control over the ship and its crew. Court absolved KKKK of liability by special agreement in a particular instance only, to transport goods or persons from once
because it was able to prove that it was not negligent in transporting the cargo because place to another either gratuitously or for hire.
damage occurred during the unloading and transferring to the warehouse of PPI agent hired • Civil Code
by consignee. • Ordinary diligence or diligence of a good father of a family
A charter-party between a shipowner and a charterer does not necessarily transform a What is a common carrier?
common carrier into a private one as to negate the civil law presumption of negligence in A "common carrier" as "any person, corporation, firm or association engaged in the business of
case of loss or damage to its cargo carrying or transporting passengers or goods or both, by land, water, or air, for compensation,
offering their services to the public."
The distinction between a "common or public carrier" and a "private or special carrier" lies in • Civil Code and Public service Act
the character of the business, such that if the undertaking is a single transaction, not a part of • Extraordinary dilivencee
the general business or occupation, although involving the carriage of goods for a fee, the
person or corporation offering such service is a private carrier.
• It is only when the charter includes both the vessel and its crew, as in a bareboat or COMMON CARRIER DISTINGUISHED FROM OTHER CONTRACTS
demise that a common carrier becomes private, at least insofar as the particular
voyage covering the charter-party is concerned.. Distinguished from Towage
• One vessel is hired to bring another vessel to another place (ex. Tugboat)
A "charter-party" is defined as a contract by which an entire ship, or some principal part • Diligence of a good father of the family
thereof, is let by the owner to another person for a specified time or use
Distinguished from Arrastre
Charter parties are of two types: • Hauling of cargo, comprehends the handling of cargo on the wharf or between the
1. Contract of Affreightment which the owner of a ship or other vessel lets the whole or establishment of the consignee or shipper and the ship’s tackle
a part of her to a merchant or other person for the conveyance of goods, on a • Start of responsibility – from the time they are placed upon the wharves or piers or
particular voyage, in consideration of the payment of freight delivered along sides of ships
a. Time charter - vessel is leased to the charterer for a fixed period of time
b. Voyage charter - ship is leased for a single voyage Functions of Arrastre
1. To receive, handle, care for, and deliver all merchandise imported and exported,
Note: In both cases, the charter-party provides for the hire of vessel only, either for a upon or passing over government-owned wharves and piers in the port
determinate period of time or for a single or consecutive voyage, the shipowner to 2. To record or check all merchandise which maybe delivered to said port at shipside
supply the ship's stores, pay for the wages of the master and the crew, and defray and in general
the expenses for the maintenance of the ship 3. To furnish light, and water services and other incidental services in order to
undertake its arrastre service.
Travel agency is NOT in the nature of a common carrier, which by law does not require the Tramp Service
exercise of extraordinary diligence in the fulfillment of its obligations • Operation of a contract carrier which has no regular and fixed routes and
• Caravan's services as a travel agency include procuring tickets and facilitating schedules but accepts cargo wherever and whenever the shipper desires, is hired
travel permits or visas as well as booking customers for tours and not an entity on a contractual basis, or chartered by anyone or few shippers under mutually
engaged in the business of transporting either passengers or goods. agreed terms and usually carries bulk or break bulk cargoes
• Each voyage is a matter of special arrangement between the ship-owner and
The test to determine whether negligence attended the performance of an obligation: shipper
Did the defendant in doing the alleged negligent act use that reasonable care and caution
which an ordinarily prudent person would have used in the same situation? If not, then he is GOVERNING LAWS
guilty of negligence.
Vargas Case – sold to 3rd party but was still liable because since she failed to surrender to the
Registered Owner Rule
Motor Vehicles Office the corresponding AC plates in violation of the Revised Motor Vehicle
• A person who is the registered owner of a vehicle is liable for any damage caused
Law and Commonwealth Act No. 146.
by the negligent operation of the vehicle although the same was already sold or
conveyed to another person at the time of the accident.
Erezo Case – Jepte misrepresented himself as the owner of the truck that collided with the
• Public interest
taxicab which resulted to the death of Erezo.
• Owner liable to the injured party subject to his right of recourse tagainst the
Even if Jepte were not the owner of the truck at the time of the accident, he was still held
transferee of the buyer
liable for the death of Erezo. Significantly, the driver of the truck was fully authorized to drive it.
The registered owner of a motor vehicle is primarily and directly responsible for the BALIWAG TRANSIT, INC. v. COURT OF APPEALS
consequences of its operation, including the negligence of the driver, with respect to the 147 SCRA 82, January 07, 1987
public and all third persons
• The registered owner of a motor vehicle is the employer of its driver, with the actual SUMMARY: Baliwag was composed of two companies before. SSS remittance claim. No Kabit
operator and employer, such as a lessee, being considered as merely the system here
owner's agent
• This being the case, even if a sale has been executed before a tortious incident, the It is the possession of a franchise to operate which negates the existence of the "Kabit System"
sale, if unregistered, has no effect as to the right of the public and third persons to and not the issuance of one SSS ID Number for both bus lines from which the existence of said
recover from the registered owner. system was inferred
• The public has the right to conclusively presume that the registered owner is the real
owner, and may sue accordingly PARI DELICTO RULE
• Persons who are parties to the “kabit system” cannot invoke the same as against
each other iether to enforce their illegal agreement or to invoke the same to
KABIT SYSTEM escape liability.
• “No action arises out of an illicit bargaint
LIM v. COURT OF APPEALS
373 SCRA 394, January 16, 2002 TEJA MARKETING v. INTERMEDIATE APPELLATE COURT
148 SCRA 347, March 09, 1987
SUMMARY: mutli-car collision. Gunnaban 10 wheeler -> Feroza -> Gunnaban jeep. In the
present case it is at once apparent that the evil sought to be prevented in enjoining SUMMARY: Sold a tricyle which was mortgaged and buyer failed to pay.
the kabit system does not exist.
A certificate of public convenience is a special privilege conferred by the government.
XPT: Express contract to transport and deliver property within a specified time, it is bound to
DUTIES TO SPECIAL CLASSES OF PASSENGERS fulfill its contract and is liable for any delay, no matter from what cause it may have arisen.
• PWD
• Senior Citizens • When a common carrier undertakes to convey goods, the law implies a contract
that they shall be delivered at destination within a reasonable time, in the absence,
DUTY TO MAKE TIMELY DELIVERY OF THE GOODS of any agreement as to the time of delivery.
• Goods must be delivered within the stipulated time agreed upon to the designated • Delay must be reasonable. A common carrier undertaking to transport property has
consignee the implicit duty to carry and deliver it within reasonable time, absent any particular
• When a law undertake to covey goods, The implies a contract they shall be stipulation regarding time of delivery, and to guard against delay.
delivered at destination within a reasonable time: o In case of any unreasonable delay, the carrier shall be liable for damages
o Consider bill of lading immediately and proximately resulting from such neglect of duty.
o Nature of goods
• Delay in the absence of a special contract – a carrier is not an insurer against delay What is a bill of lading?
in the transportation of goods. A bill of lading is a written acknowledgment of the receipt of the goods and an agreement to
transport and deliver them at a specified place to a person named or on his order. Such
instrument may be called a shipping receipt, forwarder's receipt and receipt for
SALUDO JR. v. CA transportation.
G.R. No. 95536 | March 23, 1992
SUMMARY: Casket containing the remains of Crispina Saludo was misshiped to Mexico instead CONSEQUENCES OF DELAY
to San Francisco (resulting to delay in shipment to Manila and Cebu). Court held that it was • Excusable delays in carriage suspend but not generally terminate the contract of
CMAS who is negligent and not TWA since TWA relied on the representation/ information carriage.
provided in the casket by CMAS. Morevoer, shipment of TWA in an earlier flight did not violate
the contract of carriage since it is expressly stated in the conditions that they can change the Consequences of Inexcusable delay: (NIDA)
carrier/flight time and ship the remains within a reasonable time 1. Carrier is still liable even if natural disaster caused the damage
2. Stipulation limiting the carrier is inoperative
Duty to Accept Goods 3. Carrier liable for damages
• It the duty of the carrier to make inquiry as to the general nature of the articles 4. Consignee may exercise his right to abandon (Art. 371 of CoC)
shipped and of their value before it consents to carry them; and its failure to do so
cannot defeat the shipper's right to recovery of the full value of the package if lost,
in the absence of showing of fraud or deceit on the part of the shipper
• In the absence of more definite information, the carrier has a the right to accept MAGELLAN MANUFACTURING MKTG CORPORATION v. CA, ORIENT OVERSEAS CONTAINER LINES
shipper's marks as to the contents of the package offered for transportation and is AND FE ZUELLIG, INC.
not bound to inquire particularly about them in order to take advantage of a false G.R. No. 95529 | August 22, 1991
classification and where a shipper expressly represents the contents of a package
to be of a designated character, it is not the duty of the carrier to ask for a VOCABULARY
repetition of the statement nor disbelieve it and open the box and see for itself. Demurrage → the compensation provided for in the contract of affreightment for the
• When can they open it? Where a common carrier has reasonable ground to detention of the vessel beyond the time agreed on for loading and unloading. Essentially,
suspect that the offered goods are of a dangerous or illegal character demurrage is the claim for damages for failure to accept delivery. In a broad sense, every
improper detention of a vessel may be considered a demurrage.
Duration of duty in the Carriage of Goods
• Extraordinary diligence statutorily required to be observed by the carrier Transshipment → The act of taking cargo out of one ship and loading it into another; to
instantaneously commences upon delivery of the goods thereto, for such duty to transfer goods from the vessel stipulated in the contract of affreightment to another vessel
On board bill of lading received for shipment bill of lading When consignee becomes a party ot the contract?
one in which it is stated that the goods a received for shipment bill of lading is one The right of the shipper to countermand the shipment terminates when the consignee or
have been received on board the vessel in which it is stated that the goods have legitimate holder of the bill of lading appears with such bill of lading before the carrier and
which is to carry the goods been received for shipment with or makes himself a party to the contract. Prior to that time, the consignee is stranger to the
without specifying the vessel by which the contract.
goods are to be shipped.
issued when the goods have been issued whenever conditions are not
actually placed aboard the ship with normal and there is insufficiency of DELAY TO TRANSPORT PASSENGERS
every reasonable expectation that the shipping space. • Carrier must commence its trip within reasonable time and maybe held liable if
shipment is as good as on its way. unreasonably delayed.
SUMMARY: TransAsia allowed its M/V Asia Thailand vessel to leave for voyage from Cebu to Code of Commerce Provisions and Rationale
CDO despite having an engine problem with 1 engine only is functioning. They knowingly let
the vessel leave without completing the repair and continuously made the repairs while it is on Article 1755. A common carrier is bound to carry the passengers safely as far as human care
boarded resulting to the engine being conked out and stoppage of the vessel at the middle and foresight can provide, using the utmost diligence of very cautious persons, with a due
of the sea. Passengers got scared and the vessel was forced to go back to Cebu and regard for all the circumstances.
disembark the scared passengers. TransAsia’s vessel was not seaworthy and did not exercise
extraordinary diligence making it liable to moral and exemplary damage to respondent Meaning of Extraordinary Diligence
Arroyo, who is one of the passenger in this case. • To prove exercise of extraordinary diligence, the carrier must do more than merely
show the possibility that some other party could be responsible for the damages
ART. 1755. A common carrier is bound to carry the passengers safely as far as human care • Must prove that it used all reasonable means to ascertain the nature and
and foresight can provide, using the utmost diligence of very cautious persons, with a due characteristics of goods
regard for all the circumstances. • Take necessary precaution
Xxx
The failure of a common carrier to maintain in seaworthy condition its vessel involved in a
contract of carriage is a clear breach of its duty prescribed in Article 1755 of the Civil Code. Non-delegable duty
• Duty of seaworthiness, the duty of care of the cargo is non-delegable, and the
Damages carrier is accordingly responsible for the acts of the master, the crew, the stevedore
In contracts or quasi-contracts, the obligor is liable for all the damages which may be and his other agents.
reasonably attributed to the non-performance of the obligation if he is guilty of fraud, bad • Implied obligation to transfer it with sound machinery, competent hands, and in
faith, malice, or wanton attitude such a manner that no unnecessary injury shall be done thereto.
Xxx
Where the delay in a contracted voyage is incurred after the commencement of such
voyage, Article 698 of the Code of Commerce, not Article 1169 of the Civil Code, applies. WESTWIND SHIPPING CORPORATION v. UCPB GENERAL INSURANCE CO.
Xxx G.R. No. 200289 | November 25, 2013
Where the common carrier fails to observe extraordinary diligence resulting in delay or
interruption of the voyage, it shall be liable for any pecuniary loss or loss of profits which the SUMMARY:
passengers may suffer by reason thereof Kinsho-Mataichi Corporation shipped from Japan 197 metal containers/skids of tin-free steel
for delivery to the consignee, San Miguel Corporation through the vessel owned by Westwind
Definition When to recover and was insured by UCPB. During the unloading in Manila, 6 containers/skids sustained dents
Moral Damage moral suffering, mental anguish, recoverable in a damage suit and punctures from the forklift used by the stevedores. 2 Bad Order Cargo Receipt were
fright, serious anxiety, besmirched predicated upon a breach of issued. Subsequently, when it arrived in the warehouse, it was discovered upon discharge that
reputation, wounded feelings, contract of carriage where it is additional nine containers/skids were also damaged due to the forklift operations; thus,
moral shock, social humiliation, or proved that the carrier was guilty making the total number of 15 containers/skids in bad order. Almost a year after, SMC filed a
similar injury of fraud or bad faith even if claim against UCPB, Westwind, ATI, and OFII to recover the amount corresponding to the
death does not result. damaged 15 containers/skids. The RTC dismissed UCPB’s complaint and the counterclaims of
Exemplary imposed by way of example or In contracts and quasi-contracts, Westwind, ATI, and OFII. On appeal, the CA ruled in favor of UCPB, ordering Westwind and
damages correction for the public good, in exemplary damages may be OFII to pay UCPB. SC held that Westwind is responsible for the 6 and ATI for the 9.
addition to moral, temperate, awarded if the defendant acted
liquidated or compensatory in a wanton fraudulent, reckless, DOCTRINE:
damages oppressive or malevolent manner Cargoes, while being unloaded, generally remain under the custody of the carrier.
The extraordinary responsibility of the common carrier lasts until the time the goods are
represent the adequate In contracts or quasi-contracts, actually or constructively delivered by the carrier to the consignee or to the person who has a
compensation for pecuniary loss the obligor is liable for all the right to receive them. There is actual delivery in contracts for the transport of goods when
suffered and for profits the damages which may be possession has been turned over to the consignee or to his duly authorized agent and a
obligee failed to obtain reasonably attributed to the non- reasonable time is given him to remove the goods.
performance of the obligation if
he is guilty of fraud, bad faith, Arrastre
malice, or wanton attitude Handling cargo is mainly the arrastre operator's principal work so its drivers/operators or
employees should observe the standards and measures necessary to prevent losses and
damage to shipments under its custody
DUTY TO EXERCISE EXTRAORDINARY DILIGENCE
Art. 1744. A stipulation between the common carrier and the shipper or owner limiting the
Commencement of Duty in Carriage of Passengers liability of the former for the loss, destruction, or deterioration of the goods to a degree less
• Commences the moment the person who purchases the ticket from the carrier than extraordinary diligence shall be valid, provided it be:
presents himself at the proper place and in a proper manner to be transported with 1. In writing, signed by the shipper or owner;
a bona fide intent to ride the coach. 2. Supported by a valuable consideration other than the service rendered by the
• Provide safety to its passengers so obligates it not only during the course of the trip common carrier; and
but so long as the passengers are within its premises and where they ought to be in 3. Reasonable, just and not contrary to public policy.
pursuance to the contract of carriage.
• Awaiting at the area as long as there is intention to ride Passenger – NO stipulation lessening the utmost diligence owed to passengers
• Land Transportation – all persons who remain on the premises within a reasonable
time after leaving the conveyance are to be deemed passengers and what is a Gratuitous Passenger – Still extraordinary diligence.
reasonable time or a reasonable delay within the rule is to be determined from all
the circumstances, and includes reasonable time to see after his baggage and Art. 1758. When a passenger is carried gratuitously, a stipulation limiting the common carrier's
prepare for his departure. liability for negligence is valid, but not for wilful acts or gross negligence.
How Duty is complied With The reduction of fare does not justify any limitation of the common carrier's liability.
• The source of a common carrier ‘s legal liability is the contract of carriage, and by
entering into the said contract, it binds itself to carry the passengers safely as far as
human and foresignt can provide. EXTRAORDINARY DILIGENCE IN CARRIAGE BY SEA
• Requires extraordinary diligence owed its conception to the nature of the business
Duty of Third Persons of carriers
• Duty to exercise extraordinary diligence is primarily owed to the passenger and the
goods being transported. Seaworthiness
• HOWEVER, this duty extends to the members of the crew or complement operating • Ship that will transport must be seaworthy
the carrier • A passenger or shipper of goods is under no obligation to conduct an inspection of
the ship and its crew. The carrier is obliged by law to timpliedly warrant its
seaworthiness
KAPALARAN BUS LINE v. CORONADO • Burden of Proof: Passenger or shipper is not required to prove inceptively in a case
G.R. No. 85331 | August 25, 1989 that he filed that the ship was not seaworthy.
SUMMARY: Head-on collision. A KBL bus and a jeepney collided in an intersection in Laguna. Meaning of Seaworthiness
The evidence presented showed that the jeepney had already traversed the intersection • That strength, durability and engineering skill made a part of a ship’s construction
when it met the bus head-on. The bus company filed a complaint for damage to property and continued maintenance with a competent and sufficient crew, which would
and physical injuries through reckless imprudence against the owner and the driver of the withstand the dangers of the elements which might be reasonably be expected or
jeep plus a third party complaint against Shinyo, a mere passenger of the jeep. encountered during her voyage without loss or damage to her particular cargo.
DOCTRINE:
Extraordinary diligence not owed only to passengers or shippers but also to third persons as COGSA, Section 3.
well. 1. The carrier shall be bound, before and at the beginning of the voyage, to exercise
• The carrier fails to exercise extraordinary diligence if it will not comply with basic due diligence to —
traffic rules. a. Make the ship seaworthy;
• For if common carriers carefully observed the statutory standard of extraordinary b. Properly man, equip, and supply the ship;
diligence in respect of their own passengers, they cannot help but simultaneously c. Make the holds, refrigerating and cooling chambers, and all other parts of
benefit pedestrians and the owners and passengers of other vehicles who are the ship in which goods are carried, fit and safe for their reception
equally entitled to the safe and convenient use of our roads and highways. carriage and preservation.
2. The carrier shall properly and carefully load, handle, stow, carry, keep, care for, and
The carrier shall be bound before and at the beginning of the voyage to exercise due Proper Storage
diligence to – • Vessel itself may be suitable for the cargo but this is not enough because the cargo
a. Make the ship seaworthy must also be properly stored.
b. Properly man, equip, and supply the ship; • Deck Cargo: presumption of unseaworthiness
Carriers are deemed to warrant impliedly the seaworthiness of the ship. For a vessel to be
seaworthy, it must be adequately equipped for the voyage and manned with a sufficient PHILIPPINE HOME ASSURANCE CORP. v. COURT OF APPEALS
number of competent officers and crew. G.R. No. L-8095 | March 31, 1915
SUMMARY: Put inside the This ship is on fayah! PHAC nasusunog! The cargoes are insured by
Considering the nature of transportation business, passengers and shippers alike customarily PHAC. While the ship was off Okinawa Japan, a small flame was detected on the acetylene
presume that common carriers possess all the legal requisites in its operation cylinder located in the accommodation area near the engine room.
DAMAGES DOCTRINE:
Articles 20 and 2176 of the Civil Code, which provide: The vessel itself may be suitable for the cargo but this is not enough because the cargo must
“Article 20. - Every person who contrary to law, willfully or negligently causes damage to also be properly stored.
another, shall indemnify the latter for the same.
• Cargo must generally not be placed on deck. The carrying of deck cargo raises the
“Article 2176. - Whoever by act or omission causes damage to another, there being fault or presumption of unseaworthiness unless it can be shown that the deck cargo will not
negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no interfere with the proper management of the ship.
pre-existing contractual relation between the parties, is called a quasi-delict and is governed
by the provisions of this Chapter.” FIRE
"Article 844. A captain who may have taken on board the goods saved from the wreck shall NEGLIGENCE OF CAPTAIN AND CREW
continue his course to the port of destination; and on arrival should deposit the same, with Negligence of the captain or crew can be traced to the fact that they are really
judicial intervention at the disposal of their legitimate owners. x x x incompetent. LLR cannot be applied.
The owners of the cargo shall defray all the expenses of this arrival as well as the payment of Limited Liability Rule
the freight which, after taking into consideration the circumstances of the case, may be fixed Covers only situation involving the negligence of the captain or crew. Liability of the
by agreement or by a judicial decision." shipowner may be limited to the value of the vessel
In quasi-contracts in concerning contract of carriage, the carrier is principally liable whether Damage to Properties and Persons near Railroad Tracks
or not their employee acted beyond their jurisdiction. Railroad company must exercise due care in preventing damage to the properties hear the
The SC ruled that it cannot be doubted that the employees of the railroad company were tracks.
guilty of negligence in piling these sacks on the platform in the manner above stated; that
their presence caused the plaintiff to fall as he alighted from the train; and that they therefore
constituted an effective legal cause of the injuries sustained by the plaintiff. It necessarily RAILROAD CROSSING CASES
follows that the defendant company is liable for the damage thereby occasioned unless the Due diligence on the part of the train operator includes due diligence in traversing railroad
plaintiff’s bars recovery own contributory negligence. crossing and in maintaining the same
CLEMENTE BRIÑAS v. PEOPLE SUMMARY: There was a collision between the Baliuag Bus and PNR train since there was no
G.R. No. L-30309 | November 25, 1983 any safety signs or warning device in the railroad. PNR and its driver engineer is liable for
negligence for not effecting safety signs, choosing its driver (who only learned from
SUMMARY: Passengers died alighting from the train because Briñas, the conductor experience and not from training) and not exercising extraordinary diligence in operating the
announced the stop earlier than he should have, and led to the passengers falling to the train and running it for more than the normal speed
tracks when the train suddenly accelerated.
DOCTRINE: When it is apparent, or when in the exercise of reasonable diligence
DOCTRINE: commensurate with the surroundings it should be apparent, to the company that a person on
“It is a matter of common knowledge and experience about common carriers like trains and its track or to get on its track is unaware of his danger or cannot get out of the way, it
buses that before reaching a station or flag stop they slow down and the conductor becomes the duty of the company to use such precautions, by warnings, applying brakes, or
announces the name of the place. It is also a matter of common experience that as the train otherwise, as may be reasonably necessary to avoid injury to him
or bus slackens its speed, some passengers usually stand and proceed to the nearest exit,
ready to disembark as the train or bus comes to a full stop. This is especially true of a train Requirements of a Railroad
because passengers feel that if the train resumes its run before they are able to disembark, A railroad is not required to have a gate (crossing bar) or a flagman, or to maintain signals at
there is no way to stop it as a bus may be stopped. It was negligence on the conductor's part every intersection; only at such places reasonably necessary; what is considered reasonably
to announce the next flag stop when said stop was still a full three minutes ahead.” necessary will depend on the amount of travel upon the road, the frequency with which trains
pass over it and the view which could be obtained of trains as they approach the crossing,
When death occurs as a result of the commission of a crime, the following items of damages and other conditions
may be recovered:
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 19
Lilius vs. MRR - A railroad company has been adjudged guilty of negligence and civilly liable • Whatever articles a passenger usually takes with him for his own personal use,
for damages when it failed to install semaphores, or where it does not see to it that its flagman comfort and convenience according to the habits or wants of the particular class to
or switchman comply with their duties faithfully, to motorist injured by a crossing train as long which he belongs, either with reference to his immediate necessities or to the
as he had crossed without negligence on his part ultimate purpose of journey,
• LTFRB Rules – free 10kg
Speeding
Checked-in Baggage
Obligations of Third Persons Approaching Crossing • Same as above. Delivered to the carrier
GR: the rights and obligations between the public and railroad company at a public crossing
are mutual and reciprocal. They are in natural obligation to avoid injury. Thye must exercise
necessary precaution. Hand Carried Luggage
Art. 1998. The deposit of effects made by the travellers in hotels or inns shall also be regarded
No imputed contributory negligence as necessary. The keepers of hotels or inns shall be responsible for them as depositaries,
No imputed negligence to the passengers as regards to the negligence of the driver of a car provided that notice was given to them, or to their employees, of the effects brought by the
and negligence of engineer of the train. guests and that, on the part of the latter, they take the precautions which said hotel-keepers
or their substitutes advised relative to the care and vigilance of their effects. (1783)
JUNIO v. MANILA RAILROAD COMPANY Art. 2000. The responsibility referred to in the two preceding articles shall include the loss of, or
G.R. No. 37044 | March 29, 1933 injury to the personal property of the guests caused by the servants or employees of the
keepers of hotels or inns as well as strangers; but not that which may proceed from any force
SUMMARY: Collision in the outskirts of a railroad with a LOCOMOTIVE of Manila Railroad. Soloria majeure. The fact that travellers are constrained to rely on the vigilance of the keeper of the
and Junio were in a hired car when it collided with a train by defendant company along their hotels or inns shall be considered in determining the degree of care required of him. (1784a)
railroad crossing. TC absolved defendant citing contributory negligence on the part of the
driver. SC said they couldn’t be liable for the negligence of the driver since it was they who Art. 2001. The act of a thief or robber, who has entered the hotel is not deemed force
brought the suit for damages and not the driver. They were in no way negligent and majeure, unless it is done with the use of arms or through an irresistible force. (n)
responsible for what happened. Art. 2002. The hotel-keeper is not liable for compensation if the loss is due to the acts of the
guest, his family, servants or visitors, or if the loss arises from the character of the things brought
DOCTRINE: into the hotel. (n)
The negligence of a driver, who, in turn, is guilty of contributory negligence, cannot be
imputed to a passenger who has no control over him in the management of the vehicle and Art. 2003. The hotel-keeper cannot free himself from responsibility by posting notices to the
with whom he sustains no relation of master and servant effect that he is not liable for the articles brought by the guest. Any stipulation between the
• From the simple fact of hiring the carriage or riding in it no such liability can arise. hotel-keeper and the guest whereby the responsibility of the former as set forth in articles 1998
The party hiring or riding must in some way have cooperated in producing the injury to 2001 is suppressed or diminished shall be void.
complained of before he incurs any liability for it.
The passengers are duty bound to:
It has been said that the gates constitute an invitation to the public to pass without fear of 1. Give notice to the Common Carrier or its employees of the effects
danger, and failure to operate them conveniently constitutes negligence on the part of the 2. Take precautions which the common carrier or their substitutes advised relative to
company the care and vigilance of their effects
• From the evidence, it is obvious that the defendant as well as the driver of the car in
which the plaintiffs were passengers were negligent, the former because, by
installing the gates at the place or crossing where the accident occurred, it had
voluntarily imposed upon itself the obligation to operate them even at night and to
CHAPTER III – OBLIGATIONS OF THE PASSENGER AND SHIPPER
close them every time a train passed in order to avoid causing injury to the public.
FORTUITOUS EVENT SUMMARY: Hogs died. Son rode in Cebu’s TPU truck on its return trip to Cebu City. The CC fell
into the canal because the drag-link spring of the truck in question was defective and it did
Requisites of a Fortuitous Event not inspect the bus prior to its return trip. Court held that CC is liable as defect in automobile is
Fortuitous Event must be the Proximate Cause to constitute a defense not a “caso fortuito” which would avoid carrier’s liability for damages.
1. The cause of the unforeseen and unexpected occurrence, or of the failure of the
debtor to comply with his obligation, must be independent of the human will. DOCTRINE: Defect in automobile is NOT a “caso fortuito” which would avoid carrier’s liability
2. It must be impossible to foresee the event that constitutes the caso fortuito or if for damages
foreseen, it must be impossible to avoid
3. The occurrence must be such as to render it impossible to fulfill his obligation in a
normal manner Tire Blowouts – not fortuitous event
4. The obligor (debtor) must be free from any participation in or the aggravation of the
injury resulting to the creditor. Other Invalid Defenses
1. Explosion
2. Worms and Rats
PHILIPPINE AMERICAN GENERAL INSURANCE COMPANY vs. PKS SHIPPING COMPANY 3. Water Damage
G.R. No. 149038 | April 9, 2003 4. Barratry
o It is an act committed by the master or crew of the ship for some unlawful
SUMMARY: 75,000 bags of cement carried on PKS Shipping’s Dumb Barge sank off the coast of or fraudulent purpose, contrary to their duty to the owner
Dumagasa Point due to strong waves and winds – Typhoon Apiang o Intentional fraud or breach of trust is necessary
o Ship-owner cannot escape liability to third persons if the cause of
DOCTRINE: damage is barratry.
“In case of loss, destruction or deterioration of goods, common carriers are presumed to have
been at fault or to have acted negligently, and the burden of proving otherwise rests on
them. PUBLIC ENEMY
• Defense available to the carrier not only under NCC but also COGSA
The provisions of Article 1733, notwithstanding, common carriers are exempt from liability for • Piracy
loss, destruction, or deterioration of the goods due to any of the following causes:
(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity; NATURE OF GOODS AND IMPROPER PACKING
(2) Act of the public enemy in war, whether international or civil; COGSA provides that the common carrier may not be liable for:
(3) Act or omission of the shipper or owner of the goods; 1. Wastage in bulk or weight or any other loss or damage arising from inherent defect,
(4) The character of the goods or defects in the packing or in the containers; and quality or vice of goods
(5) Order or act of competent public authority 2. Insufficiency of packing
3. Insufficiency or inadequacy of the marks
4. Latent defects not discoverable by due diligence
Effect of Carrier’s Participation
Carrier must be free from any participation in causing the damage or injury
Fire
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 22
ASIAN TERMINALS, INC. v. SIMON ENTERPRISES, INC. said driver is acting within the scope of his authority and observing the existing rules and
G.R. No. 177116 | February 27, 2013 regulations required of him by management.
For the purposes of maritime commerce, the words "captain" and "master" have the same DOCTRINE:
meaning; both being the chiefs or commanders of ships “It has been held that airline passengers must take such risks incident to the mode of travel. In
this regard, adverse weather conditions or extreme climatic changes are some of the perils
Nautral Law: that he who enjoys the benefits derived from a thing must likewise suffer the involved in air travel, the consequences of which the passengers must assume or expect. After
losses that ensue therefrom. all, common carriers are not the insurer of all risks.”
Common carriers are not absolutely responsible for all injuries or damages even if the same
ACTS OF THER PASSENGERS AND THIRD PERSONS were caused by a fortuitous event.
Negligence of the carrier need not be the sole cause of the damage or inquiry to passenger • There is no question that when a party is unable to fulfill his obligation because of
or goods. The carrier would still be liable even if the contractual breach concurs with the “force majeure,” the general rule is that he cannot be held liable for damages for
negligent act or omission of another person/ non-performance
• If the fortuitous event was accompanied by neglect and malfeasance by the
Art. 1763. A common carrier is responsible for injuries suffered by a passenger on account of carrier’s employees, an action for damages against the carrier is permissible.
the wilful acts or negligence of other passengers or of strangers, if the common carrier's
employees through the exercise of the diligence of a good father of a family could have
prevented or stopped the act or omission. ACTS OF SHIPPER OR THE PASSENGER
If the acts or omission of the shipper or owner of the goods or the passenger is the proximate
and only cause of damage, the common carrier is not liable
ROSITO BACARRO v. CASTAÑO
G.R. No. L-34597 | November 5, 1982
Contributory Negligence of the Shipper
SUMMARY: Fell into the ditch.Collision by passenger jeep and cargo truck. Cargo truck blew its
horn to overtake the jeepney; that the jeepney gave way but did not reduce its speed; that Article 1741. If the shipper or owner merely contributed to the loss, destruction or deterioration
for a distance of 20 meters, the truck and the jeepney ran side by side; and that the jeepney of the goods, the proximate cause thereof being the negligence of the common carrier, the
was sideswiped when the truck was in the process of overtaking the said jeepney. latter shall be liable in damages, which however, shall be equitably reduced,
DOCTRINE:
A common carrier is vested with public interest. Under the new Civil Code, instead of being Contributory Negligence of the Passenger
required to exercise mere ordinary diligence a common carrier is exhorted to carry the
passengers safely as far as human care and foresight can provide “using the utmost diligence Article 1761. The passenger must observe the diligence of a good father of a family to avoid
of very cautious persons.” (Article 1755). Once a passenger in the course of travel is injured, or injury to himself.
does not reach his destination safely, the carrier and driver are presumed to be at fault.
Article 1762. The contributory negligence of the passenger does not bar recovery of damages
Art. 1733. Common carriers, from the nature of their business and for reasons of public policy,
for his death or injuries, if the proximate cause thereof is the negligence of the common
are bound to observe extraordinary diligence in the vigilance over the goods and for the
carrier, but the amount of damages shall be equitably reduced.
If the negligence of the shipper or the passenger may be the proximate and only cause of the
loss, in which case, the carrier should not be made liable. BUSTAMANTE v. CA
G.R. No. 89880 | February 6, 1991
NOTICE OF CLAIM AND PRESCRIPTION IN AIR TRANSPORTATION 5. On Board Bill v. Received for Shipment Bill
No specific requirement a. On board - Goods have been received on board the vessel
b. Received for shipment – goods received with or without specifying the
vessel by which the goods are to be shipped.
Rules under Warsaw Convention
Complaint must be filed within the following (notice mandatory): 6. Custody Bill of Lading – goods are received by carrier but vessel indicated has not
3 days – from receipt of baggage yet arrived in the port
7 days – from receipt of goods
14 days – after baggage was placed at the disposal of the passenger 7. Port Bill of Lading – vessel that will transport is already in the port
2 years – prescriptive period from date of arrival or date when the aircraft ought to have
arrived
NATURE
3 fold nature (applicable only to carriage of goods):
Limiting Stipulation 1. Receipt
Parties may sitpulate to limit the amount 2. Contact
• Reasonable and just 3. Document of title that makes it a symbol of the goods
• Fairly and freely agreed upon
WHEN EFFECTIVE
• Effective upon delivery to and acceptance by the shipper.
• Presumed that stipulations are in absence of fraud, concealment or improrer
CHAPTER IV – BILL OF LADING AND OTHER FORMALITIES
conduct, known to the shipper and he is generally bound by his acceptance
whether he reads the bill or not.
CONCEPTS
• A bill of lading or a ticket is not necessary for the perfection of the contract of
carriage BILL OF LADING AS A CONTRACT
• Contract of carriage not a formal contract • 3 fold applicable only to carriage of goods
• Electronic document allowed • Not applicable to passenger tickets
Article 354. In the absence of a bill of lading the respective claims of the parties shall be Parties
decided by the legal proofs that each one may submit in support of his claims, in accordance 1. Shipper
with the general provisions established in this Code for commercial contracts 2. Carrier
3. Consignee
a. Relationship of agency between the consignee and the
DEFINITION shipper/consignor
A bill of lading is a written acknowledgment signed by the master of a vessel or other b. Unequivocal acceptance of the bill with full knowledge of contents
authorized agent of the carrier, that he has received the described goods from the shipper to c. Stipulation pour aurtui
be transported on the expressed terms, to the described place of destination and to be
delivered there to the designated consignee or aprties.
Contract of Adhesion
Normally construed liberally in favor of the passenger or shipper who adhered to such bill of
KINDS OF BILL OF LADING lading or ticket. Take it or leave it.
1. Negotiable or non-negotiable
2. Clean Bill of Lading and Foul Bill of Lading Parol Evidence Rule
a. Clean – no notation of defect Terms of a contract are conclusive upon the parties and evidence aliunde is not admissible to
b. Foul – contains notation vary or contradict a complete and enforceable agreement embodied in a document,
subject to well-defined exceptions.
3. Spent Bill of Lading - Delivered goods but the bill was not returned
Spent Carrier already delivers the goods and carrier supposed to have retrieved the Bill of Lading as Evidence
covering bill of lading Expresses the terms and conditions between the parties, names the parties, includes the
consignee, fixes the route, destination, and freight or charges and stipulates the rights and
obligations assumed by the parties.
• No erasures
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 26
• Prima facie proof 4. That the common carrier shall exercise a degree of diligence less than that of a
good father of a family, or of a man of ordinary prudence in the vigilance over the
Bill of Lading as Actionable Document movables transported;
When a shipper enforces a contractual obligation under the contract of carriage as stated in 5. That the common carrier shall not be responsible for the acts or omission of his or its
the bill of lading, such bill of lading can be categorized as an actionable document. Must be employees;
pleaded, genuineness and due execution are deemed admitted unless specifically denied 6. That the common carrier's liability for acts committed by thieves, or of robbers who
under oath, do not act with grave or irresistible threat, violence or force, is dispensed with or
diminished;
Shipment of Terms 7. That the common carrier is not responsible for the loss, destruction, or deterioration
Purpose: of goods on account of the defective condition of the car, vehicle, ship, airplane
1. To determine the point at which the risk of loss passes from the seller to buyer or other equipment used in the contract of carriage.
2. To determine what performance by the seller amounts to a tender which will put the
buyer, if he thereafter refuses to accept delivery, in breach
3. Quoting the price Limiting Stipulations
Art. 1745. Any of the following or similar stipulations shall be considered unreasonable, unjust When limting Sitpulation cannot be invoked
and contrary to public policy: 1. When agreement is annulled by the shipper or owner if the common carrier refused
1. That the goods are transported at the risk of the owner or shipper to carry the goods unless the former agreed to such stipulation
2. That the common carrier will not be liable for any loss, destruction, or deterioration 2. If the carrier delays the transportation
of the goods; 3. If the carrier changes the stipulated or usual route.
3. That the common carrier need not observe any diligence in the custody of the
goods;
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 27
BILL OF LADING AS RECEIPT • If third person concurs with the breach, the liability of the thrid person who was
The issuance of a bill of lading carries the presumption that the goods were delivered to the driving another vehicle and/or his employer may be based on quasi-delict
carrier issuing the bill, for immediate shipment, and it is nowhere questioned that a bill of o Employer subsidiarily liable
lading is a prima facie evidence of receipt of the goods by the carrier o Driver criminally and civilly liable
o Joint and severally liable to passenger if bot
Said Weight Clause
• Shipper is solely responsible for loading while the carrier is oblivious of the contents of Elements of Cause of Action Against the Carrier
the shipment. 1. Right in favor of the plaintiff by whatever means and whatever law it arises
• Nobody knows the actual weight of the cargo, the weight written on the bill and on 2. Correlative onligation of the defendant to respect such right
the manifest is based only on the declaration of the shipper 3. Act or omission of the defendant violation the right of the plaintiff
Effects of Negotiation
• Bill of lading is also a symbol of the goods covered by it Kinds of Damages
• Negotiability merely indicates that the transfer of a document of title through 1. Actual or compensatory
negotiation has the effect of transferring possession of the goods 2. Moral
3. Nominal
4. Temperate or Morderate
5. Liquidated
6. Exemplary or Corrective
CHAPTER Vi – ACTIONS AND DAMAGES IN CASE OF BREACH
ACTUAL OR COMPENSATORY DAMAGES
DISCTINCTION
Kinds of Actual Damages
Distinction Between Culpa Contractual and Culpa Aquiliana 1. Loss of what a person already possessed
2. Fiailure to receive as a benefit that would have pertained to him
CULPA CONTRACTUAL CULPA-AQUILIANA
Source of Contract Quasi-Delict Proof - not presumed, must point out specific facts
Obligation
Liability of No liability there being no privity of Solidarily liable with employer Damages in case of Death
Employee contract 1. Fixed damages
Availability of Due diligence in the selection and Due diligence in the selection and 2. Loss of earning capacity
Defense supervision of the employee is NOT supervision of the employee is A 3. Funeral expense
a defense defense
In What Liable as contracting party Liable as an employer
Capacity Liable ATTORNEY’S FEES
• Must be proven, it’s only an exception and not the general rule.
• See Art. 2208 – legal support, actions for recovery of wages of helpers, erparate
Concurrent Causes of Action action to recover civil liability arising from crime, malicious prosecution, exemplary
• Negligent Act that breaches the contract may give rise to a liability based on damages, any othe just and equitable, etc.
contract as well as quasi delict (Art. 2176) • Breach of contract of carriage
• Direct and primary liabiliaty of drivers based on queasi delict and delict – equally
applies to the captain, officers, crew, etc.
o Shipowner, as employer, may be held primarily liable (Art. 2180) INTERESTS
§ Vicarious liability because the negligence of the employee is • Loan of forebearance of money – 6% from such finality until its satisfaction
imputed to the employer-operator
CHAPTER VIII – OBLIGATIONS OF CARRIER IN ARI TRANSPORTATION SUMMARY:. Overweight (max 70kg) and humiliation William Uy is a passenger on United Airlines
flight from San Francisco bound for Manila whose luggage was beyond 70kg limit. He was
asked to fix his luggage weight but still was overweight. As a result, he was humiliated and
EXTRAORDINARY FILIGENCE IN AIR TRANSPORTATION shouted by the UA crew. When he arrived in Manila he saw that his bag was slashed and
1. Provide competent and well trained crew
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 31
some items were stolen. He filed a case against UA but UA contens that it is already beyong a higher valuation of his luggage, a condition provided in the ticket, and the dismissal of the
the 2year limit as provided in Art. 29 of Warsaw Convention. But it is not applicable in this case 3rd party complaint.
because as an exception to its application – the airline used delaying tactics.
DOCTRINE:
Uy has 2 cause of action In a contract of air carriage, a declaration by the passenger of a higher value is needed to
a) the shabby and humiliating treatment he received from the employees at the San recover a greater amount. BUT the benefits of limited liability are subject to waiver such as
Francisco Airport which caused him extreme embarrassment and social humiliation; when the air carrier failed to raise timely objections during the trial when questions and
and, answers regarding the actual claims and damages sustained by the passenger were asked
o an action for damages arising from the misconduct of the airline employees
and the violation of respondent's rights as passenger – NOT COVERED BY Member airlines of the International Air Transport Association (IATA) are regarded as agents of
WARSAW each other in the issuance of tickets and other matters pertaining to their relationship.
b) the slashing of his luggage and the loss of his personal effects amounting to US
$5,310.00. The nature of an airline’s contract of carriage partakes of two types, namely
o an action for damages arising from theft or damage to property or goods – 1. contract to deliver a cargo or merchandise to its destination
COVERED BY WARSAW 2. contract to transport passengers to their destination.
Consequently, insofar as the first cause of action is concerned, Uy's failure to file his complaint
within the two (2)-year limitation of the Warsaw Convention does not bar his action since
petitioner airline may still be held liable for breach of other provisions of the Civil Code which
prescribe a different period or procedure for instituting the action, specifically, Art. 1146
thereof which prescribes four (4) years for filing an action based on torts.
PAL v. CA
DOCTRINE: G.R. No. 119641 | May 17, 1996
Despite the express mandate of Article 29 of the Warsaw Convention that an action for
damages should be filed within two (2) years from the arrival at the place of destination, such SUMMARY: Super malas. Discrimination in baggage offloadeding. Accommodation was full
rule shall not be applied where the airline employed delaying tactics. but NOT. Sps. Miranda were on the return trip back from San Francisco with Surigao as the
point of final destination. However, PAL employees told the Sps. that their baggages were off
Art. 29 of Warsaw Convention loaded in Honolulu for being overweight. Consequentially, the Sps. missed all their connecting
1. The right to damages shall be extinguished if an action is not brought within two (2) flights for needing to wait for their luggage. While in Cebu on the supposed final connecting
years, reckoned from the date of arrival at the destination, or from the date on flight to Surigao, the pilot announced that it had to return to Mactan. The Sps. asked PAL to
which the aircraft ought to have arrived, or from the date on which the help with their accommodations to which PAL begrudgingly did. Unfortunately, while in Cebu,
transportation stopped. the Sps. found out that their luggage had already gone straight to Surigao. Upon returning to
2. The method of calculating the period of limitation shall be determined by the law of Surigao they filed the present action for damages. The S.C. ruled that the Warsaw convention
the court to which the case is submitted. doesn’t apply in this case because of the discriminatory off-loading.
AND DOCTRINE: The Warsaw Convention declares the carrier liable in the enumerated cases and
Within our jurisdiction, the Warsaw Convention can be applied or ignored, depending on the under certain limitations. However, it must not be construed to preclude the operation of the
peculiar facts presented by each case. Civil Code and pertinent laws. It does not regulate, much less exempt, the carrier from liability
for damages for violating the rights of its passengers under the contract of carriage, especially
Warsaw Convention reveal that the delegates thereto intended the two (2)- year limitation if willful misconduct on the part of the carrier's employees is found or established, which is the
incorporated in ART. 29 AS AN ABSOLUTE BAR TO SUIT AND NOT TO BE MADE SUBJECT TO THE case before Us.
VARIOUS TOLLING PROVISIONS OF THE LAWS OF THE FORUM.
A contract of air carriage generates a relation attended with a public duty and any
discourteous conduct on the part of a carrier’s employee toward a passenger gives the latter
an action for damages and, more so, where there is bad faith
BRITISH AIRWAYS v. COURT OF APPEALS • An airline’s unilateral and voluntary act of providing cash assistance is deemed part
G.R. No. 121824 | January 29, 1998 of its obligations as an air carrier, and is hardly anything to rave about
SUMMARY: No declared value but failed to object.Mahtani decided to visit his relatives in DUTY TO PASSENGERS
Bombay so he hired Mr. Gumar to prepare his travel plant. Mr. Gumar bought a ticket from Duty to treat the passengers with kindness, respect, courtesy and consideration as well as
British Airways (BA) with a MNL-HK-BOM-HKG-MNL route;. Upon arrival in Bombay, he comfort and convenience
discovered that his luggage was missing and was directed to London. BA in its answer said
that Mahtani does not have a cause of action and it filed a 3rd party complaint against PAL. How can moral damages be awarded?
BA now questions the amount awarded for the loss luggage, since Mahtani failed to declare
Economic Regulations no. 7 (Applies to every Philippine and foreign air carrier)
1. Flights within the territory of the Philippines
2. Flights or portion of flights from territory of the Philippines operated by a domestic or
When a passenger has confirmed reservations for a flight, they are entitled as of right under foreign carrier
contract to be accommodated in the flight, regardless of whether they had selected their 3. Denied boarding for reasons other than no-show or other cancellations of booking
seats in advance or not. voluntarily made by passenger
4. Delayed flights
5. Cancelled flights
SAVELLANO v. NORTHWEST AIRLINES
G.R. No. 151783 | July 08, 2003 Compensation for denied boarding and cancellation
1. Passengers of domestic flight – 100% of value of the sector not flow + 3,000php
SUMMARY: Fire in engine, distressed flight. Savellanos were originally booked to SFo-Tokyo- 2. Passengers of international flight - 100% of value of the sector not flow + 5,000php or
Manila flight but due to fire in the plane, they were forced to land in Seattle. NW booked equivalent currency
them a flight to Manila via Seoul WITHOUT THEIR CONSENT. Court held there is breach of 3. Airline provides higher compensation
contract because as expressly stated Condition 9 in the tickent containts a stipulation that
UNILATERAL change is not permitted. Substituting aircrafts or carriers without notice is entirely • No passenger shall be denied from boarding for 2 consecutive times
different from changing stopping places or connecting cities without notice • Delay for more than 2 hours
o Refreshments or meals
DOCTRINE: A contract is the law between the parties. Thus, in determining whether petitioners' o Free communication
rights were violated, we must look into its provisions, which are printed on the airline ticket. o First aid medicine
• Delayed until the next day
"Art. 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or o Refreshments or meals
delay and those who in any manner contravene the tenor thereof are liable for damages." o Hotel accommodation
o Free communication
"Art. 2201. In contracts and quasi-contracts, the damages for which the obligor who acted in o Reimbursement if passenger opts not to fly
good faith is liable shall be those that are the natural and probable consequences of the
breach of the obligation, and which the parties have foreseen or could have reasonably Carrier shall be exempt from delay and cancellation under the following instances:
foreseen at the time the obligation was constituted." 1. Cancelled due to operational, safety and /or security reasons, force majeure,
weather, strikes and other causes beyond control of air carrier
"In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all 2. Fault is attributable to passenger
damages which may be reasonably attributed to the non-performance of the obligation." Must issue written reports
Other cases:
Lopez sufficient time -- one month -- to inform the passengers of what had PHILIPPINE AIRLINES, INC. v. COURT OF APPEALS
happened to their booking, the airline agent intentionally withheld that G.R. No. 123238 | September 22, 2008
information from them
Zulueta the passenger was deliberately off-loaded after being gravely insulted SUMMARY: Indemnity bond. Sps. Buncio purchased from PAL 2 tickets to LA for their 2 minor
during an altercation children who will travel unaccompanied. However, the 2 minors were not allowed to board in
Ortigas was intentionally downgraded in favor of a European. their connecting flight from Sanfo to LA because they were lacking the required indemnity
bond which was said to have been lost due to the negligence of the employees of PAL. RTC
ruled in favor of spouses and made PAL liable for damages. SC ruled the same since there
DENIED BOARDING OF PASSENGERS was clear negligence on the part of PAL in not making sure that the minors would be
Under Civil Aviation Regulations - Operator may deny transportation if a passenger: transported to their destination safely without any distress.
1. Refuses to comply with the instructions regarding exit seating
2. Has handicap that can be physically accommodated by an exit row DOCTRINE:
3. Failed to present himself on time in the airport counter When an airline issues a ticket to a passenger, confirmed for a particular flight on a certain
date, a contract of carriage arises. The passenger has every right to expect that he be
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 34
transported on that flight and on that date, and it becomes the airline’s obligation to carry • Violation – imprisonment of 12-2years
him and his luggage safely to the agreed destination without delay. If the passenger is not so
transported or if in the process of transporting, he dies or is injured, the carrier may be held
liable for a breach of contract of carriage.
CHAPTER IX – WARSAW CONVENTION
In breach of contract of air carriage, moral damages may be recovered where:
1. the mishap results in the death of a passenger; BINDING EFFECT
2. where the carrier is guilty of fraud or bad faith; • The Convention for the unification of Certain Rules Relating to International
3. where the negligence of the carrier is so gross and reckless as to virtually amount to Transportation by air
bad faith. • Ratified by PH on - November 9, 1950
• Took effect on – February 7, 1951
• Amended by Hague Protocol and PH acceded
UNITED AIRLINES v. CA • Amended by Guatamela and Montreal Protocl but PH NOT acceded
G.R. NO. 124110 | April 20, 2001
PURPOSES
• To protect and promote the international airline industry
SUMMARY: Failed to check in. The Fontanillas were denied boarding by the ground crew of • To provide uniformity of rules governing claims arising from international air travel.
United Airlines on the ground that they failed to check-in prior embarkation. The Fontanillas • It precludes passenger from maintaining an action for personal injury damages
argued that they suffered racism and derogatory remarks from United Airlines Staff and filed a under local laws when his or her claim does not satisfy the conditions of liability
complain for damages. The S.C. held that the failure of the Fontanilla’s to check in justified the under the Convention
refusal to board. Aside from this, the Fintanillas failed to prove the racism.
DOCTRINE: Code of Federal Regulation Part on Oversales, which states: 250.6 Exceptions to PHILIPPINE AIRLINES v. SAVILLO
eligibility for denied boarding compensation. G.R. No. 149547 | July 04, 2008
A passenger denied board involuntarily from an oversold flight shall not be eligible for denied
board compensation if: SUMMARY: Golf. Passengers not allowed to ride Singapore Airlines from Singapore to Jakarta
because allegedly “they were not endorsed by PAL”. PAL alleges that Warsaw Convention
(a) The passenger does not comply with the carrier's contract of carriage or tariff provisions already barred the complaint since it was filed beyond 2 years. Court held the jurisprudence
regarding ticketing, reconfirmation, check-in, and acceptability for transformation in the Philippines and the United States recognizes that the Warsaw Convention does not
“exclusively regulate” the relationship between passenger and carrier on an international
Economic Regulations No. 7 as amended, of the Civil Aeronautics Board: provides that the flight.
check-in requirement be complied with before a passenger may claim against a carrier for
being denied boarding. DOCTRINE: A claim covered by the Warsaw Convention can no longer be recovered under
local law, if the statute of limitations of two years has already lapsed
The Hague Protocol amended the Warsaw Convention by removing the provision that if the Although the Warsaw Convention has the force and effect of law in this country, being a
airline took all necessary steps to avoid the damage, it could exculpate itself completely, and treaty commitment assumed by the Philippine government, said convention does not operate
(by) declaring the stated limits of liability not applicable "if it is proved that the damage as an exclusive enumeration of the instances for declaring a carrier liable for breach of
resulted from an act or omission of the carrier, its servants or agents, done with intent to cause contract of carriage or as an absolute limit of the extent of that liability.
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 37
other part for the carrier." library 1aw library
And Art. 1735 establishes the presumption that if the goods are lost, destroyed or deteriorated, The passenger stub is typically handed to the passenger or attached to the ticket envelope:
common carriers are presumed to have been at fault or to have acted negligently, unless 1. to aid the passenger in identifying their bag among similar bags at the destination
they prove that they had observed extraordinary diligence as required in Article 1733. baggage carousel
2. as proof—still requested at a few airports—that the passenger is not removing
"The only exceptions to the foregoing extraordinary responsibility of the common carrier is someone else's bag from the baggage reclaim hall;
when the loss, destruction, or deterioration of the goods is due to any of the following causes: 3. as a means for the passenger and carrier to identify and trace a specific bag that
1. Flood, storm, earthquake, lightning, or other natural disaster or calamity; has gone astray and was not delivered at the destination.
2. Act of the public enemy in war, whether international or civil;
3. Act or omission of the shipper or owner of the goods;
4. The character of the goods or defects in the packing or in the containers; TORT LIABILITY
5. Order or act of competent public authority. Warsaw does not provide for exclusive enumeration of instance when the carrier is liable. It
does not preclude the application of the Civil Code and other pertinent local laws.
VENUE OF ACTION
PAL v. CA 1. Court where the carrier is domicile
G.R. No. L-44936 | September 25, 1992 2. Court where the carrier has its principal place of business
3. Court where the carrier has an establishment by which the contract has been
SUMMARY: HK man loses Films. Chua Min, an HK national on a PAL flight from HK to MNL, lost made
his luggage containing films upon landing in Manila. He filed a case to recover the lost items. 4. The court of the place of destination
PAL invoked the limited liability under the Warsaw Convention. The S.C. ruled that since PAL
failed to give luggage checks to Chua Min, it cannot avail of the limited liability.
NOTICE OF CLAIM OR COMPLAINT
DOCTRINE: • 3 days from date of receipt of baggage
Article 22 (2) of the Warsaw Convention because of the unequivocal condition set forth under • 7 days from date of receipt –goods
the second sentence of Article 4, paragraph 4 that:LibLex • 14 days, in case of delay, counted from the time the baggage was placed at the
". . . if the carrier accepts baggage without a baggage check having been delivered, or if disposal of the passenger
the baggage check does not contain the particulars set out at (d), (f), and (h) above, the
carrier shall not be entitled to avail himself of those provisions of the Convention which PRESCRIPTION
exclude or limit his liability."
Article 29 of Warsaw Convention
Article 22 (2) of the Warsaw Convention because of the unequivocal condition set forth under The right to damages shall be extinguished if an action is not brought within two years,
the second sentence of Article 4, paragraph 4 reckoned from the date of arrival at the destination, or from the date on which the Art. 30 (1).
In the case of transportation to be performed by various successive carriers and falling within
Article 4 (1) the definition set out in the third paragraph of Article I, each carrier who accepts passengers,
"For the transportation of baggage, other than small personal objects of which the passenger baggage, or goods shall be subject to the rules set out in the convention, and shall be
takes charge himself, the carrier must deliver a baggage check."cralaw deemed to be one of the contracting parties to the contract of transportation insofar as the
contract deals with that part of the transportation which is performed under his supervision.
Article 4 (2):chanrobles.com.ph 1. to have arrived, or from the date on which the carriage stopped.
"The baggage check shall be made out in duplicate, one part for the passenger and the 2. The method of calculating the period of limitation shall be determined by the law of
the Court seised of the case.
SUMMARY: Vessel sank. Multiple claims against Aboitiz for the value of the goods lost. Court Shipowner Entitled to Limited Liability
held that Aboitiz IS negligent but still in the interest of justice since the value of claims is more • Shipowner is the very person for whom the limited liability has been received to
than x3 of the vessel, court applied the limited liability rule. The claimants must be treated as protect
creditors in an insolvent corporation whose assets are not enough to satisfy the totality of the • Charterer and sub-charterer cannot invoke limited liability against the shipowner
claims against it. even if it is a bareboat charter
Workmen’s Compensation
Even when the vessel was lost, the liability is still enforceable CRESCENT PETROLEUM, LTD. vs. M/V "LOK MAHESHWARI," THE SHIPPING CORPORATION OF
INDIA, and PORTSERV LIMITED and/or TRANSMAR SHIPPING, INC.
Abandonment G.R. No.155014 | November 11, 2005
Abandonment of the vessel, its appurtenance and freightage is an indispensable requirement
before the ship-owner or ship agent can enjoy the benefits of the limited liability principle. SUMMARY: M/V Lok, an Indian vessel, was chartered and sub-chartered by Canadian
Companies. Crescent supplied bunker fuels to the vessel as requested by Portserve however
Procedure for Enforcement Crescent received no payment. While the ship was docked in Cebu, Crescent filed an action
• Rights of a vessel owner or agent under the Limited Liability Rule are akin to those of to collect a sum of Money. Court held that while the court had admiralty jurisdiction, it still did
the rights of shareholders to limited liability under our corporation law. not apply it because of the 7 Multi Contact Test. Only 1/7 in PH.
• Both in insolvency and sinking of a vessel, the claimants or creditors are limited to
their recovery to the remaining value of the accessible assets DOCTRINE:
o Insolvent corporation – residual assets Two tests have been used to determine whether a case involving a contract comes within the
o Lost vessel – insurance proceeds and pending freightage for the particular admiralty and maritime jurisdiction of a court :
voyage 1. Locational Test - wherein maritime and admiralty jurisdiction, with a few exceptions,
• The total proceeds of the insurance and pending freightage should be deposited in is exercised only on contracts made upon the sea and to be executed thereon.
trust. 2. Subject Matter Test - Whether or not a contract is maritime depends not on the
• Claimant should institute necessary limitation and distribution before the proper place where the contract is made and is to be executed, making the locality the
admiralty court and thereafter deposit with it the proceeds from the insurance test, but on the subject matter of the contract, making the true criterion a maritime
company and pending freightage in order to safeguard the same pending final service or a maritime transaction
resolution of all incidents, for final pro-rating and settlement thereof.
• Civil liability for collision is merely co-existent with his interest in the vessel, since there
was total loss, and his liability is also extinguished. FORFEITURE DUE TO SMUGGLING
Penalty for forfeiture is imposed on any vessel engaged in smuggling under Sec. 2530 of the
Tariff and Custom Code
PROTESTS 1. The vessel “used unlawfully in the importation or exportation of articles into or from”
Written statement by the master of a vessel or any authorized officer, attested by proper the Philippines
officer or a notary, to the effect that damages has been suffered by the ship 2. The articles are imported to or exported from “any Philippine Port or place, except a
port of entry
Protest is required under the Code of Commerce in the following cases: 3. If the vessel has a capacity of less than 30 tons and is “used in the importation of
1. When the vessel makes an arrival under stress articles into any Philippine port or place other than a port of the Sulu Sea, where in
2. Where the vessel is shipwrecked importation in such vessel may be authorized by the Commissioner, with the
3. Where the vessel has gone through a hurricane or the captain believes that the approval of the department head”.
cargo has suffered damages or averages.
4. Maritime collisions
MARINE POLLUTION
Admiralty Jurisdiction The Marine Pollution Decree of 1976 – national policy to prevent and control the pollution of
Sec. 19(3) of BP 129 or Judiciary Reorganization Act of 1980 seas by the dumping of wastes and other matter which create hazard to human health, harm
(3) In all actions in admiralty and maritime jurisdiction where he demand or claim exceeds living resources and marine life, damage amenities, or interfere with the legitimate uses of the
Three hundred thousand pesos (P300,000.00) or , in Metro Manila, where such demand or sea.
claim exceeds Four hundred thousand pesos (P400,000.00)
Prohibited Acts
Two tests have been used to determine whether a case involving a contract comes within the 1. Discharge or oil, noxious gaseous and liquid substance into the territorial and inland
admiralty and maritime jurisdiction of a court navigable waters of the Philippines
1. Locational test – Maritime and admiralty jurisdiction, with a few exceptions, is 2. Liquid state into tributary of any navigable water from which the same shall float or
exercised only on contracts made upon the sea and to be executed thereon. be washed into the navigable water
(Followed by English rule) 3. Deposit or cause suffer or procure to be deposited material of any kind in any place
on the bank of any navigable water
MARINE INSURANCE The protest required by article 835 of the Code of Commerce in case of collision between
MARINA Memorandum Circular Nos. 09-18 vessels is not necessary to preserve the rights of a person aboard a motor boat engaged in
conveying passengers between ship and shore who is injured in a collision between the motor
Persons Covered Amount of Coverage Risk Insured Against / Nature boat and the larger vessel.
of Compensation
Passengers P200,000.00/passenger Death
Unmanifested Passengers P200,000.00/passenger Death Other Vessels
Survivors P50,000.00/passenger Survivorship Coverage / Although small watercrafts are not contemplated under certain provisions of Code of
Monetary Assistance Commerce and special laws. MARINA and other government agencies regulate them.
Surviving Passengers P50,000.00/passenger Monetary Assistance
Kinds of Vessels
Passenger – includes any person while embarking on, on board, or disembarking from the 1. Passenger ship – carriers more than 12 passengers
ship. 2. Cargo ship – not a passenger ship
• Includes: ticketed, unticketed, manifested, unmanifested, paying, non-paying, 3. Tanker – carries liquid cargo of an inflammable nature
minor, discounted, complimentary, accompanying cargo or animals or vehicles. 4. Fishing vessel – used in catching fish, whales, seals, walrus
5. Nuclear Ship – nuclear power plant
Wreck Recovery and Pollution Liability Insurance 6. New Ship – a ship the keel of which is laid or which is at a similar stage of
MARINA Memorandum Circular No. 1, 2009 construction on or after the date of coming into forces of SOLAS 1974
Mandate to secure insurance coverage for pollution liability and liabilities arising from wreck 7. Existing Ship – not a new ship
removal.
CHAPTER 11 - VESSEL
VESSEL AS PERSONAL PROPERTY
DEFINITION • Considered as personal property under the civil law
Any barge, lighter, bulk carrier, passenger ship, freighter, tanker, container ship, fishing boats • Chattel mortgage must be entered in the record of Collector of Customs
or other artificial contrivance utilizing any source of motive power, designed, used or capable
of being used as a means of transportation operating under a common carrier.
ACQUISITION
XPT: Vessel can be transferred only with approval of the sale or transfer, it is required that the buyer
1. Owned and/or operated by the Armed Forces of the Philippines and by foreign shall within 15 days from approval of the MARINA secure a new Certificate of Philippine
governments for military purposes Registry and Certificate of Ownership
Prescription
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 42
2 Types of Prescription 2. Ships of Philippine Coast Guard
1. Ordinary Prescription 3. All ships of foreign registry temporarily used in the Philippine Waters
a. Person must be in continuous possession 4. Inflatable Boats used for the rescue made either a single or more tubing
b. Possession must be for a period of 3 years
c. Possession must be in good faith
SHIP’S MANIFEST
2. Extraordinary Prescription – 10 years • Manifests shall be required for cargo and passengers transported from one place or
port in the Philippines to another only when one or both of such places is a port of
Sale entry.
Must be registered with MARINA to affect 3rd persons • Declaration of the entire cargo
• A vessel must carry a manifest is not complied with even if a bill of lading can be
Co-owner’s Rights presented
If a vessel is sold to a 3rd person, the co-owner is given the right of redemption within 9 days • A bill of lading is JUST A DECLARATION of the SPECIFIC cargo not the general cargo.
following the inscription of the sale in the registry and by depositing the price at the same
time. LOGBOOK
• Ship’s log/logbook is the official record of a ship’s voyage which its captain is
obligated by law to keep wherein he records the decisions he has adopted, as
NATIONALITIY OF VESSELS summary of the performance of the vessel, and other daily events.
Vessels duly registered in the Philippines are considered Philippine Flag vessels. • Respectable record that can be relied upon when the entries therein are presented
in evidence
Rights Under the Tariff and Customs Code
• Certificate of Philippine registry confers upon the vessel the right to engage in
overseas shipping SAFETY REGULATIONS
• Can only be deleted in the Philippine registry if MARINA shall have the power to inspect vessels and all equipment on board to ensure
o No other Philippine shipping enterprise is interested in acquitting the vessel compliance with safety standards.
o The vessel has to be scrapped
REGISTRATION OF VESSELS
Vessels are now registered through Maritime industry Authority. Registered owner is presumed REPAIR OF VESSELS
to the owner of the vessel. If not registered, it is not binding to others • Ship repairers are liable to the ship owner for any damage that was cause to the
vessel while the same is undergoing repairs.
• Repairer may be held liable for the loss of the vessel.
FAUSTO RUBISO & BONIFACIO GELITO v. FLORENTINO RIVERA • May agree to limit
G.R. No. L-11407 | October 30. 1917
SUMMARY: Did not register. Rivera acquired pilot boat Valentina on January 4, 1915, from its
original owner the Chinaman Sy Qui, but did not inscribe his title in the mercantile registry
according to article 573 of the Code of Commerce in relation to article 2 of Act No. 1900, until CHAPTER 12 – SHIP MORTGAGE AND MARITIME LIENS
much later on. Subsequently Fubiso bought said pilot boat in a sale at public auction for the
sum of P55.45 and inscribed his title in the mercantile registry immediately.
DOCTRINE
Tests to Determine the Presence of Lien
1. Law of the Country where supplies were furnished CHAPTER 13 – PERSONS WHO TAKE PART IN MARITIME COMMERCE
2. The Lauritzen-Romero-Rhoditis trilogy of cases (Lauritzen v. Larsen)
1. Place of wrongful act
2. Law of the flag LIABILITY OF SHIP OWNERS AND SHIP AGENTS
3. Allegiance or domicile of the injured • The Shipowner is the person primarily liable for damages sustained in the operation
4. Allegiance of the defendant shipowner of vessel.
5. Place of contract • Naviero – construed to include the shipowner, ship agent and even the charter who
6. Inaccessibility of foreign forum is considered as owner pro hac vice.
7. Law of the forum
3. Factors provided in Restatement (Second) of Conflicts of Law STANDARD OIL COMPANY OF NEW YORK v. LOPEZ CASTELO
1. Place of contracting G.R. No. L-13695 | October 18, 1921
2. The place of negotiation of contract
3. Place of performance SUMMARY: Petroleum cargoes were jettisoned due to storm. Standard Oil shipped petroleum
4. Place of location of the subject matter of the contract via Steamer Batangueno, a chartered vessel of Chumbuque. A storm came and the
5. Domicile, residence, nationality, place of incorporation of business of petroleum cargoes on the deck were jettisoned. Standard Oil filed a claim for the value of
parties these jettisoned cargoes. Court the shipowner and charterer civilly liable despite the failure of
the captain to institute liquidation proceedings and making of liquidation is not a condition
SUMMARY: Collision. Perla and Ban Yek collided because Ban Yek did not heed to the signal When Captain Acts in Excess of Authority
of Perla. Court held Ban Yek, its owner and agent is liable to Perla for the damages and also The shipowner and the ship agent are liable in certain cases even if the captain has
because Perla was in the right of way. exceeded his authority if the proceeds of an obligation redounded to the benefit of the
vessel.
DOCTRINE:
In Art. 826 of the Code of Commerce, it is declared that the owner of any vessel shall be liable Liability for Extra-Contractual Obligations
for the indemnity due to any other vessel injured by the fault, negligence, or lack of skill of the • The owner and his agent are liable for the tortuous acts of his agent
captain of the first. • The shipowner and the ship agent, in turn, can make the captain liable for his
negligence
• Art. 2176 – action in quasi delict
WING KEE COMPRADORING CO. v. BARK "MONONGAHELA" • Art. 2180 – direct and primary and solidary with the employee
G.R. No. 19540 | January 29, 1923 o There is presumption on negligence in the selection and supervision but
can escape liability if he can prove that he exercised due diligence
SUMMARY: Non-payment of amount due in furnishing the bark. Wee Kee sold goods, wares,
and merchandise to the defendants for the use of the crew of the Bark Monongahela. It was PART OWNERS
seeking payment from Admiral Lines as the agent as stipulated in the documents and bills • Maybe civilly liable in proportion
presented. However, Admiral argues that its agency ceased and action cannot be filed • Resolution of the majority relating to dissolution shall also be binding in the minority
against it. Court found Admiral liable ONLY for the time it was still the agent. • Owners of vessel shall have preference in her charter over other persons
DOCTRINE:
Article 586 of the Code of Commerce - the owner of a vessel and agent be civilly liable for the POWERS AND FUNCTIONS OF SHIP AGENT
acts of the captain and for the obligations contracted by the latter to repair, equip, and Whether acting as agent of the owner of the vessel or as agent of the charterer, a person
provision the vessel, provided the creditor proves that the amount claimed was invested shall still be considered as ship agent and may be held liable, as long as the latter is the one
therein. that provisions or represents the vessels.
• Not agent – IF only function is to inform the consignee of the arrival of the vessel
Discharge of Captain and Crew Compagnie de Commerce vs. Hamburg is instructive and wherein the Court recognized the
Captain and crew is subject to the provisions of discretionary authority of the master of a vessel and his right to exercise his best judgment,
• Labor Code - for those employed for domestic with respect to navigating the vessel he commands
• POEA – seamen who are hired for overseas employment
Liability of Captains and Master
Captain shall be civilly liable to the ship agent and the later to the third persons that may
CAPTAINS AND MASTERS OF VESSELS have made contracts with the former:
• Captain – those who govern vessels that navigate the high seas or ships of large 1. Damage due to negligence
dimensions and importance, although they are engaged in the coastwise trade 2. Theft committed by crew
• Masters – those who command smaller ships engaged exclusively in the coastwise 3. Losses, fines and confiscations on violation of customs, police, health.
trade 4. Losses or damage caused by mutinies on board the vessel
But for the purpose of maritime commerce, both have the same meaning 5. Misuse of powers and non-fulfillment of obligation
6. By reason of going out of his course without sufficient cause
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 47
7. Enterting a port other than the destination f) a pilot shall be held responsible for the direction of a vessel from the time he assumes his
8. Non-observance of regulations work as a pilot thereof until he leaves it anchored or berthed safely; Provided, however, that
his responsibility shall cease at the moment the Master neglects or refuses to carry out his
order.
PILOTAGE
Pilot – a person duly qualified and licensed to conduct a vessel into or out of ports, or in
certain waters. Pilot and His Association
It includes both: The fact that a pilot is a member of an association does not make the association jointly and
1. Those whose duty is to guide vessels into or out of ports in particular waters severally liable
2. Those entrusted with the navigation of the vessels on the high seas
OTHER CODE OF COMMERCE PROVISIONS ON CAPTAINS
Master and Pilot • Captain cannot be substituted without consent of agent
• The pilot supersedes the master for the time being in the command and navigation • Captains may not contract loans on respondentia
of the ship and his orders must be obeyed in all matters connected with her • If there is a privateer, captain must inform his agent or shipper and sail under
navigation. convoy
• The pilot does not take entire charge of the vessel but is deemed merely the adviser • A captain must make a protest within 24 hours after occurrence of hurricane and
of the master,who retains command and control of the navigation even in localities caused damage to vessel
where pilotage is compulsary
SEC. 32. Duties and responsibilities of the Pilot or Pilots' Association. — The duties and The following are issued by MARINA:
responsibilities of the Harbor Pilot shall be as follows: 1. Certificate of Competency
2. Certificate of Endorsement
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 48
3. Certificate of Proficiency • It involves a charterer who is most often a merchant himself or herself who desires to
lease a ship or vessel owned by another for the transport of his or her goods for
SECURITY OF TENURE commercial purposes
• An employee cannot be dismissed without just or lawful cause and without
affording the employee due process
• Employees working on foreign vessel – POEA DIFFERENT KINDS OF CHARTER
o POEA Standard Employment Contract for Seamen – for protection 1. Bareboat or Demise Charter
• Shipowner leases to the charterer the whole vessel, transferring tot the
OTHER OFFICERS AND CREW UNDER THE CODE OF COMMERCE latter the entire command, possession and consequent control over the
Under the Code of Commerce vessel’s navigation, including the master and the cew, who become the
1. Captain charterer’s servants
2. Sailing Mate or Chief Mate • Charterer takes over the ship, lock, stock and barrel
3. Second Mate • Charterer becomes the owner “pro hac vice”
4. Marine Engineer • Master of the vessel is the agent of the charterer and not of the shipowner
5. Crew
6. Supercargoes 2. Contract of Affreightment
a. Time Charter – Vessel leased to the charterer for a fixed period of time
Sailing Mate b. Voyage Charter - Vessel leased to the charterer for a particular voyage
He is the 2nd chief of the vessel and next only to captain of the vessel
COASTWISE LIGHTERAGE CORPORATION vs. COURT OF APPEALS and the PHILIPPINE GENERAL
INSURANCE COMPANY
Second Mate and Marine Engineer G.R. No. 114167 | July 12, 1995
To watch over the preservation of the body of the vessel, take carge that cargo is well –
arranged, discipline employees, assign works, take charge of inventory of riggings. SUMMARY: Contract of Affreightment. One of the barges, "Coastwise 9," struck an unknown
sunken object. Shipper Pag-asa denies liability to the consignee and insurer because it alleges
Just causes in dismissal of seaman that contract of affreightment transforms the common carrier into a private one. Court ruled
1. Crime that disturbs the order on vessel that a contract of affreightment does not transform a CC into a private one and therefore, for
2. Repeated insubordination failure of Coastwise to exercise extraordinary diligence, it was liable to pay PhilGen.
3. Repeated incapacity
4. Habitual drunkenness DOCTRINE:
5. Incapacity of man to perform work entrusted to him "Under the demise or bareboat charter of the vessel, the charterer will generally be regarded
6. Desertion as the owner for the voyage or service stipulated. The charterer mans the vessel with his own
people and becomes the owner pro hac vice, subject to liability to others for damages
Supercargoes caused by negligence. To create a demise, the owner of a vessel must completely and
In charge of administrative duties which the ship agent or shippers may have assigned to exclusively relinquish possession, command and navigation thereof to the charterer, anything
them short of such a complete transfer is a contract of affreightment (time or voyage charter party)
or not a charter party at all.
Sailing Mate or Chief Mate Binnacle Book
Marine Engineer Engine Book
Supercargo Accounting Book LITONJUA SHIPPING COMPANY v. NATIONAL SEAMEN BOARD & CADONGO
G.R. No. L-51910 | August 10, 1989
XPT: Sometimes, of course, the demise charter might provide that the shipowner is to furnish a
master and crew to man the vessel under the charterer's direction, such that the master and REQUISITES OF A VALID CHARTER PARTY
crew provided by the shipowner become the agents and servants or employees of the 1. Consent of Contracting Parties
charterer, and the charterer (and not the owner) through the agency of the master, has 2. Existing vessel which should be placed at the disposition of the shipper
possession and control of the vessel during the charter period 3. Freight
• In such case, the Master of the vessel is the agent of the charterer and not of the 4. Compliance with the formal requirements prescribed under Art. 652 of the Code of
shipowner. Commerce which include that the charter party must be:
a. Writing
KINDS OF CHARTER b. Drawn in duplicate
In modern maritime law and usage, there are three (3) distinguishable types of charter parties: c. Signed by the parties
1. the "bareboat" or "demise" charter (explained earlier)
Formal Requirements of Charter Party
2. the "time" charter
o like a demise charter, is a contract for the use of a vessel for a specified period Article 652. A charter party must be drawn in duplicate and signed by the contracting parties,
of time or for the duration of one or more specified voyages. and when either does not know how or can not do so, by two witnesses at their request.
o Possesion & crew: shipowner, it retains possession and control through the The charter party shall include, besides the conditions unrestrictedly stipulated, the following
master and crew who remain his employees statements:
o What the time charterer acquires is the right to utilize the carrying capacity 1. The kind, name, and tonnage of the vessel.
and facilities of the vessel and to designate her destinations during the term of 2. Her flag and port of registry.
the charter. 3. The name, surname, and domicile of the captain.
4. The name, surname, and domicile of the agent, if the latter should make the charter
3. the "voyage" or "trip" charter party.
o a contract of affreightment, that is, a contract for the carriage of goods, from 5. The name, surname, and domicile of the charterer, and if he states that he is acting
one or more ports of loading to one or more ports of unloading, on one or on by commission, that of the person for whose account he makes the contract.
a series of voyages. 6. The port of loading and unloading.
o Possesion & crew: shipowner 7. The capacity, number of tons or weight, or measure which they respectively bind
themselves to load and transport, or whether it is the total cargo.
8. The freightage to be paid, stating whether it is to be a fixed amount for the voyage
or so much per month, or for the space to be occupied, or for the weight or
PERSONS WHO MAY MAKE CHARTER measure of the goods of which the cargo consists, or in any other manner
• Owner or owners of the vessel – either whole or majority part who have legal control whatsoever agreed upon.
and possession 9. The amount of primage to be paid to the captain.
• Broker – may intervene in the execution of charter between principals 10. The days agreed upon for loading and unloading.
11. The lay days and extra lay days to be allowed and the rate of demurrage.
1. Charterer
• Charterer may sub-charter the entire vessel to a 3rd person in the event that there’s
no prohibition in the 1st charter Primage – payment for the use of the equipment belonging to the captain
• 2nd charterer’s cargo may not be refused be generally refused by the captain
• Sub-charterer and 2nd charterer – independent contract • Discrepancy of contract: broker’s copy prevails
• Intervention of broker to the authenticity of signature, if no broker, it can still be
2. Part Owners admitted if the parties duly acknowledged the signatures
• Part owners can charter also
• Part owners have preference in the charter of the vessel over other persons who
offer equal conditions and freight FREIGHT
• Parties may fix the form in which the charter price or money shall be satisfied
3. Ship Agent • If it involves a contract of affreightment, charter price or money would be governed
GR: not allowed to make contracts for a new charter by the principles relative to freight
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 50
Where charterer failed to occupy the leased portion of the vessel, he is still liable for the
Accrual or Freightage deadfreight
GR: shall accrue according to the conditions stipulated in the contract
XPT: No stipulation or if it is ambiguous;
1. Freight has begin to run from the day of loading on the vessel RIGHTS AND OBLIGATION OF THE CHARTER PARTIES
2. Charters with fixed period – freight will start on the very day • Parties are bound to comply with their respective obligation imposed by law
3. Freight charged according to weight – payment shall be made according to the • Their statutory rights and obligation of the charters are to be found in Code of
gross weight including the weight of containers Commerce
Liability of Charterer to Shipowner in case of Bareboat Charter • Freight included in the purchase price paid by it did not free the cargo from the
• Code of Commerce provisions on statutory rights will not always apply to the case carrier’s lien if the freight has not yet been fully paid by the charterer
against Charterer • Sale of cargo under certain conditions of the Code of Commerce. Right to sell the
• Liable to the deterioration or loss of cargo. This extends to the sub-charterer cargo is subject to the right of 3rd persons who received the goods without malice
• Persons entrusted when it was dry-docked for repairs and for a valuable consideration
• Court may order the deposit of goods at the instance of the Captain. If there’s
reason for distrust:
AGUSTIN P. DELA TORRE v. COURT OF APPEALS a. Consignee refuses to receive the goods
G.R. No. 160088 | July 13, 2011 b. Consignee cannot be found
SUMMARY: Improper lowering or positioning of the ramp which was well within the
responsibility of captain and crew. Crisostomo entered to a Preliminary Agreement with De La
Torre for dry docking and repairs. It was sub-chartered afterwards. Concepcion demanded CHAPTER 15 – LOANS ON BOTTOMRY AND RESPONDENTIA
that PTSC/ Roland refloat LCT-Josephine. The latter assured Concepcion that negotiations
were underway. Unfortunately, this did not materialize. Thus, the RTC declared that the
“efficient cause of the sinking of the LCT-JOSEPHINE was the improper lowering or positioning
of the ramp,” which was well within the charge or responsibility of the captain and crew of the DEFINITIONS AND CONCEPT
vessel.
Bottomry
DOCTRINE: In maritime law, is a contract whereby the owner of a ship borrows for the use, equipment or
With the complete and exclusive relinquishment of possession, command and navigation of repair of the vessel, for a definite term, and pledges the ship) or the keel or bottom of the ship)
the vessel, the charterer and later the sub-charterer became the vessel’s owner pro hac vice. as security, with the stipulation that if the ship is lost during the voyage or during the limited
time on account of the perils enumerated, the lender shall lose his money.
In the absence of any showing that the vessel or any part thereof was commercially offered
for use to the public, the above agreements/charter parties are that of a private carriage Loan on Respondentia
where the rights of the contracting parties are primarily defined and governed by the Where the goods or some part thereof, are hypothecated as security for a loan, the
stipulations in their contract repayment of which is dependent upon maritime risks
• Usual form – bond
• It is the borrower’s personal responsibility which is deemed to be the principal
REPLACEMENT OF VESSEL security for the performance of a contract
1. If after receipt of the goods, it does not reach 3/5s, the shipowner may substitute the • There must be marine risk upon which the loan is predicated such that if the vessel
vessel more suitable for voyage at its own account or the cargo is lost by virtue of that risk, the lender loses the capital or money lent
2. Substitution with consent of theshippers • There is NEITHER bottomry or respondtia if the money borrowed is subject to
repayment in any event
• Upon termination of the safe journey, he is entitled to receive a greater return on his
EFFECT OF BILL OF LADING principal that would ordinarily be received by a lender in an ordinary or simple loan
• If bill of lading was issued by the shipowner to the charterer, the charter party still o If goods are saved in case of marine peril – still going
governs the rights and the bill of lading may be used as proof of receipt of goods o If no goods or ship saved – not anymore
• Receipt of goods but terms and conditions of the contract are in the charter party
• Not operate as a new contract
• Negotiable instrument binding in favor of subsequent holder DISTINGUISHED FROM SIMPLE LOAN
• CoC- if cargo is received without the charter party being signed, contract shall be
understood to be executed in accordance to the bill of lading BOTTOMRY SIMPLE LOAN
Rate NOT Subject to Usury Law Subject to Usury Law
FREIGHT Marine risk Should exist No need
• Charterer must pay the shipowner the amount agreed upon and shall be liable in Formal Code of Commerce Formal requisites regarding a contract
the first place for the freight and expenses thereof during 30days to be counted requisites
from date of their delivery or deposit. Registry Must be recorded in the registry of No registration required
Contracts which are not reduced to writing shall not be the basis for a judicial action
When Simple Loan Applies
• When full amount of the loan to load the vessel is not used for the cargo, or given
on the goods if all of them could not have been loaded -> simple loan (should be • Contract must contain statement of kind, name and registry of the vessel, name
returned prior commencement of a voyage) and surname and domicile of the captain, receiving the loan, amount of loan and
• If lender proves that the amount loaned is larger than the value of the object liable premium and for repayment, objects to secure such and voyage risk to run
for the bottomry loan due to fraudulent means employed by the borrower -> loan
valid only on appraised by experts. Surplus -> repaid as if it were a simple loan +
interest CONSEQUENCES OF LOSS OF EFFECTS OF THE LOANS
• Lost - Accident of the sea and the cargo on board was lost
• Retains – inherent defects of the thing, through fault or malice of the borrower,
AUTHORITY TO CONSTITUTE A LOAN ON BOTTOMRY through barratry on the part of the captain, contraband, wrong loading (unless the
• Shipowner - may secure a loan on bottomry in proportion only to his interest in the change was due to force majeure)
ship • Lenders suffer in proportion to their respective interest, the general average which
• Captain - may secure on account of extreme necessity in order to comply with the may take place in the things
obligations o Particular average – if there is no agreement between the parties, the
• No loan is allowed for salaries of crew lender on bottomry or respondentia sis obligated to contribute in
proportion to his respective interest, should it not belong to the kind of
Authority to Constitute Loan on Respondentia risks.
• Cargo owner – right to enter into a loan on respondentia involving his cargo • Shipwreck – payment of loan reduced to the proceeds of goods that have been
• Capatain (mere agent of owner and not of cargo owner) – may not contract a saved – salvage cost
loan on respondentia. If he does -> void • Vessel or any part – loan is on this, the freight earned during voyage shall be liable
o Principal, interest and costs of contract chargeable to his private account for its payment
and may be discharged as acaptain • Vessel or cargo – loan on this, value of what may be saved in case of shipwreck
shall be divided between the lender and the insurer, in proportion to the legitimate
interest without prejudice to the preference of other creditors
FORMS OF THE LOANS
PREFERENCE
Article 720
Loans on bottomry or respondentia may be executed: Article 730
1. By means of a public instrument. Loans made during the voyage shall have preference over those made before the clearing of
2. By means of a bond signed by the contracting parties and the broker who took part the vessel, and they shall be graduated by the inverse order to that of their dates.
therein.
3. By means of a private instrument. The loans for the last voyage shall have preference over prior ones.
Under whichever of these forms the contract is executed, it shall be entered in the certificate Should several loans have been made at a port made under stress and for the same purpose,
of the registry of the vessel and shall be recorded in the commercial registry, without which all of them shall be paid pro rata.
requisites the credits originating from the same shall not have, with regard to other credits, the
preference which, according to their nature, they should have, although the obligation shall • Preference is given to the loans for the last voyage on the theory that were it not for
be valid between the contracting parties. the last lender, the prior lenders would not have benefitted from the preservation of
the security.
The contracts made during a voyage shall be governed by the provisions of Articles 583 and • The loan for the last voyage was used to preserve the vessel or the cargoes.
611, and shall be effective with regard to third persons from the date of their execution, if they
should be recorded in the commercial registry of the port of registry of the vessel before eight
days have elapsed from the date of her arrival. CODE OF COMMERCE PROVISIONS
If said eight days should elapse without the record having been made in the commercial
registry, the contracts made during the voyage of a vessel shall not have any effect with
regard to third persons, except from the day and date of their entry.
CHAPTER 16 - AVERAGES
By Whom Borne
• Owner of the goods - do no inure to the common benefit MAGSAYSAY, INC vs. AGAN
G.R. No. L-6393 | January 31, 1955
Article 810
The owner of the goods which gave rise to the expense or suffered the damage shall bear the SUMMARY: The boat incurred damages after it ran aground. Not general average.
simple or particular averages. Magsaysay’s vessel carrying several cargoes, including Agan’s ran aground on the way to
Basco Batanes. it asked help from the Luzon Stevedoring Company and incurred expenses
Examples of Simple Averages which it claimed as a general average, to which the owners of the cargo paid the amount.
Agan refused claiming that it was not a general average. Court ruled that it is not general
Article 809 average. But as the sacrifice was for the benefit of the vessel — to enable it to proceed to
Simple or particular averages shall be, as a general rule, all the expenses and damages destination — and not for the purpose of saving the cargo, the cargo owners are not in law
caused to the vessel or to her cargo which have not redounded to the benefit and common bound to contribute to the expenses.
profit of all the persons interested in the vessel and her cargo, and especially the following:
1. The damages suffered by the cargo from the time of its embarkation until it is DOCTRINE:
unloaded, either on account of the nature of the goods or by reason of an The following are the requisites for general average:
accident at sea or force majeure, and the expenses incurred to avoid and repair 1. there must be a common danger;
the same. 2. for the common safety part of the vessel or of the cargo or both is sacrificed
2. The damages suffered by the vessel in her hull, rigging, arms, and equipment, for the deliberately;
same causes and reasons, from the time she puts to sea from the port of departure 3. from the expenses or damages caused follows the successful saving of the vessel
until she anchored in the port of destination. and cargo; and
3. The damages suffered by the merchandise loaded on deck, except in coastwise 4. the expenses or damages should have been incurred or inflicted after taking proper
navigation, if the marine ordinances allow it. legal steps and authority.
4. The wages and victuals of the crew when the vessel should be detained or
embargoed by a legitimate order or force majeure, if the charter should have been It is the deliverance from an immediate, impending peril, by a common sacrifice, that
for a fixed sum for the voyage. constitutes the essence of general average
Article 817 In the first case the minutes shall be signed by all the persons present who could do so before
If in lightening a vessel on account of a storm, in order to facilitate her entry into a port or taking action if possible, and if not at the first opportunity; in the second case by the captain
roadstead, part of her cargo should be transferred to lighters or barges and be lost, the owner and by the officers of the vessel.
of said part shall be entitled to indemnity, as if the loss has originated from a gross average,
the amount thereof being distributed between the entire vessel and cargo which caused the In the minutes and after the resolution there shall be stated in detail all the goods cast away,
same. and mention shall be made of the injuries caused to those kept on board. The captain shall
If, on the contrary, the merchandise transferred should be saved and the vessel should be lost, be obliged to deliver one copy of these minutes to the maritime judicial authority of the first
no liability can be demanded of the salvage. port he may make within twenty-four hours after his arrival, and to ratify it immediately by an
oath.
Article 818
If, as a necessary measure to extinguish a fire in a port; roadstead; creek, or bay, it should be
decided to sink any vessel, this loss shall be considered gross average, to which the vessels Order of Jettison
saved shall contribute. Captain shall direct the jettison and order the goods cast overboard in the following order
1. Those which are on deck, beginning with those which embarrass the maneuver or
damage of the vessel, preferring, if possible, the heaviest one with the least utility
Successful Sacrifice and value
No general contribution can be demanded if the vessel and other cargo that are sought to 2. Those which are below the upper deck, always beginning with those of the greatest
be saved were not saved weight and smallest value, to the amount and number absolutely indispendsable.
• Ex. Goods sacrificed for saving of ship due to typhoon then ship still sank because of
the same typhoon – NO Examples of General Average
• Ship saved – YES, even if the vessel was subsequently lost for some another reason
Article 811
Article 861 General or gross averages shall be, as a general rule, all the damages and expenses which
If, after the vessel having been saved from the risk which gave rise to the jettison, she should are deliberately caused in order to save the vessel, her cargo, or both at the same time, from
be lost through another accident taking place during the voyage, the goods saved and a real and known risk, and particularly the following:
existing from the first risk shall continue liable to contribution by reason of the gross average 1. The goods or cash invested in the redemption of the vessel or cargo captured by
according to their value in their condition at the time, deducting the expenses incurred in enemies, privateers, or pirates, and the provisions, wages, and expenses of the
PROTEST
SPECIFIC RULES UNDER CODE OF COMMERCE • Necessary ONLY to ships and sea-going vessels
Liability rules would depend on the following: • Must be presented within 24 hours
• IF in PH - before competent authority of the point where the collision took place or
1. One Vessel at Fault – If through negligence of the crew, the owner of the vessel at 1st port of arrival
fault shall indemnify the losses and damages suffered after an expert appraisal • IF in Foreign Country – consul of PH
2. Both Vessel at Fault – bear his own damage if collision attributable to both vessel
and solidarily responsible to the damages in their cargoes (subject to doctrine of Protest not applicable to:
limited liability) Small boats engaged in river and bay traffic and inland navigation.
3. Party at Fault Cannot be Determined - bear his own damage and solidarily liable
Non-filing of Protest is excused:
TRANSPORTATION LAW – ATTY. MARCELO | A.B. MARTINEZ 58
1. Persons interested who were not on board • Proper – shipowner and ship agent liable for the expense of arrival
2. Persons interested were not in a condition to make known to their wishes • Improper – same expenses + solidarily liable for damages caused to cargoes. When
malice, negligence, want of foresight or lack of skill of the captain and when it is
Protest Mandatory unseaworthy (Art. 820)
Applies to all persons engaged in traffic upon the waters of the Philippines and that the
defendant has as much as right to insist upon compliance Unloading of Cargoes to Make Repairs
In order to make repairs to vessel or danger in cargo– necessary to unload
• Captain must request authorization to competent judge or court and with
LIMITED LIABILITY RULE interested persons
Civil liability incurred by ship-owners shall be limited to the value of the vessel with all its • If foreign court – PH Consul
appurtenances and freightage. o Repair in vessel - expenses with the ship agent or owner
o Danger in cargo - expenses with owners who benefitted
o Both - proportion
Custody of Cargo
• Cargo to be entrusted to captain except force majeure
CHAPTER 18 – ARRIVAL UNDER STRESS AND SHIPWRECK
• Imminent danger of being damage
o Captain request the judge or court for its sale
§ Must justify the legality of his conduct
ARRIVAL UNDER STRESS o After examination and declaration of experts – entry in the books
Arrival of a vessel at the nearest and most convenient port, which has decided upon after
determining that there is a well-founded fear of seizure, privateers or pirates or by reason of Liability of Captain
any accident of the sea disabling it to navigate. Liable for cause of arrival under stress if after such he did not continue with the voyage
Derelict Required
• A derelict is defined as “a ship or her cargo which is abandoned and deserted at
sea by those who were in charge of it, without any hope of recovering it or without
any intention of returning to it
• Change in intention will not change its nature
• Towage of a vessel which has lost the use of its engine by accident through it is
CHAPTER 19 - SALVAGE
complete in its hull and masts is a service of salvage
PARTIES However, there is presumption that unseaworthiness is due to negligence of the carrier and its
1. Shipper agent.
2. Carrier (includes charterer)
WAIVER
DUTIES OF CARRIER Defenses may be waived for the benefit of any of the defenses in its favor provided not only
Section 3 (1) of COGSA under COGSA but also under other laws
PUBLIC UTILITIES