A.
COMMON CARRIERS for persons with whom he has an initial contract and assumes no
What is a Common Carrier?
Article 1732. Common carriers are persons, corporations, firms or
associations engaged in the business of carrying or transporting
passengers or goods or both, by land, water, or air, for
compensation, offering their services to the public.
TEST OF WHETHER A COMMON CARRIER
 “the true test for a common carrier is not the quantity or extent of the
business actually transacted, or the number and character of the
conveyances used in the activity, but whether the undertaking is a
part of the activity engaged in by the carrier that he has held out to
the general public as his business or occupation. 
Whether or not the enterprise is open to the use and service of all
members of the public who may requires the service to the extent of
its capacity.
PRIVATE CARRIER
A private carrier is one who, without making the activity a vocation, or
without holding himself or itself out to the public as ready to act for all
who may desire his or its services, undertakes, by special agreement
in a particular instance only, to transport goods or persons from one
place to another either gratuitously or for hire. 11 The provisions on
ordinary contracts of the Civil Code govern the contract of private
carriage.The diligence required of a private carrier is only ordinary,
that is, the diligence of a good father of the family.  carriers.
DISTINGUISH COMMON CARRIER FROM PRIVATE CARRIER
A common carrier holds himself out as engaged in public
service to all persons indifferently while a private carrier carries only
obligation to carry for others.
Diligence required of common carriers
Article 1733. Common carriers, from the nature of their
business and for reasons of public policy, are bound to
observe extraordinary diligence in the vigilance over the
goods and for the safety of the passengers transported by
them, according to all the circumstances of each case.
Such extraordinary diligence in the vigilance over the goods
is further expressed in articles 1734, 1735, and 1745, Nos. 5,
6, and 7, while the extraordinary diligence for the safety of
the passengers is further set forth in articles 1755 and 1756.
Liabilities of common carriers
Article 1759. Common carriers are liable for the death of or injuries
to passengers through the negligence or wilful acts of the former's
employees, although such employees may have acted beyond the
scope of their authority or in violation of the orders of the common
This liability of the common carriers does not cease upon proof that
they exercised all the diligence of a good father of a family in the
selection and supervision of their employees.
Classification of transport network vehicle services and transport
network companies
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B. VIGILANCE OVER GOODS
1. Exempting causes
Article 1734. Common carriers are responsible for the loss,
destruction, or deterioration of the goods, unless the same is
due to any of the following causes only:
(1) Flood, storm, earthquake, lightning, or other natural
disaster or calamity;
(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;
(5) Order or act of competent public authority.
When does the extraordinary responsibility of the common
carrier begin and when does it end
Article 1736. The extraordinary responsibility of the common
carrier lasts from the time the goods are unconditionally placed
in the possession of, and received by the carrier for
transportation until the same are delivered, actually or
constructively, by the carrier to the consignee, or to the person
who has a right to receive them, without prejudice to the
provisions of article 1738.
2. Requirement of absence of negligence
3. Absence of delay
4. Due diligence to prevent or lessen the loss
Article 1744. A stipulation between the common carrier and the
shipper or owner limiting the liability of the former for the loss,
destruction, or deterioration of the goods to a degree less than
extraordinary diligence shall be valid, provided it be:
(1) In writing, signed by the shipper or owner;
(2) Supported by a valuable consideration other than the service
rendered by the common carrier; and
(3) Reasonable, just and not contrary to public policy.
5. Contributory negligence
Article 1741. If the shipper or owner merely contributed to the
loss, destruction or deterioration of the goods, the proximate
cause thereof being the negligence of the common carrier, the
latter shall be liable in damages, which however, shall be
equitably reduced.
6. Duration of liability
Article 1736. The extraordinary responsibility of the common
carrier lasts from the time the goods are unconditionally
placed in the possession of, and received by the carrier for
transportation until the same are delivered, actually or
constructively, by the carrier to the consignee, or to the
person who has a right to receive them, without prejudice to
the provisions of article 1738.
7. Delivery of goods to common carrier
8. Actual or constructive delivery
9. Temporary unloading or storage
Article 1737. The common carrier's duty to observe
extraordinary diligence over the goods remains in full force and
effect even when they are temporarily unloaded or stored in
transit, unless the shipper or owner has made use of the right of
stoppage in transitu.Stipulation for limitation of liability
10. Void stipulations
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 Article 1745. Any of the following or similar stipulations shall It refers to handling of the cargo in the hods of the vessel or
be considered unreasonable, unjust and contrary to public between the ship’s tackle and the holds o fhte vessel.
policy:
(1) That the goods are transported at the risk of the owner or
shipper;
(2) That the common carrier will not be liable for any C. SAFETY OF PASSENGERS
loss,destruction, or deterioration of the goods;
(3) That the common carrier need not observe any diligence 1. Void stipulations
in the custody of the goods; 2. Duration of liability
(4) That the common carrier shall exercise a degree of 3. Waiting for carrier or boarding of carrier
diligence less than that of a good father of a family, or of a 4. Arrival at destination
man of ordinary prudence in the vigilance over the movables 5. Liability for acts of others
transported; 6. Eployees
(5) That the common carrier shall not be responsible for the 7. Other passengers and strangers
acts or omission of his or its employees; 8. Liability for delay in commencement of voyage
(6) That the common carrier's liability for acts committed by 9. Liability for defects in equipment and facilities
thieves, or of robbers who do not act with grave or irresistible 10. Extent of liability for damages
threat, violence or force, is dispensed with or diminished;
(7) That the common carrier is not responsible for the loss,
destruction, or deterioration of goods on account of the
defective condition of the car, vehicle, ship, airplane or other
equipment used in the contract of carriage. D. BILL OF LADING – it is a written acknowledgment of receipt
of goods and agreement to transport them to a specific place to
a person named or to his order.

1. Three-fold character
11. Limitation of liability to fixed amount a. Evidence of existence of the contract of
12. Limitation of liability in absence of declaration of greater carriage of cargo
value b. Commercial document
13. Liability for baggage of passengers c. Receipt of cargo
14. Checked-in baggage 2. Delivery of goods
15. Hand-carried baggage 3. Period for delivery
4. Delivery without surrender of bill of lading
ARRASTRE OPERATOR 5. Refusal of consignee to take delivery
6. Period for filing claims
Arrastre is the hauling of cargo on the wharf or between the 7. Period for filing actions
establishment of the consignee or shipper and the ship’s tackle. 8. Effects of stipulations

STEVEDORING

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MARITIME LAWS
Implied Warranties
1) Seaworthiness at the inception of insurance
2) Ship will not deviate from agreed voyage
3) Ship will not engage in illegal venture
4) Warranty of possession of documents of
neutrality
5) Presence of insurable interest
Insurable Interest
6) Shipowner – value of vessel
7) Charterer
8) Cargo owner
Loan on Bottomry - vessel
Loan on Respondentia - cargo
REAL AND HYPOTHECARY NATURE OF MARITIME LAW
DOCTRINE OF LIMITED LIABILITY – limits the liability of the
shipowner to the value of the vessel, earned freightage and
process of insurance – HE must abandon the vessel
No vessel- no liability. The total destruction of the vessel
extinguisher maritme leien because the rei no longer res to attach it.
In a limitation action, the ship-owner, charterer or other person in
control or possession of a ship seeks to LIMIT her liability to the
FULL AMOUN OF LIMITATION FUND involving the ship, which
claims have not been otherwise settled by marine insurance or other
means.
When available?
A limitation action is available in the following:
1: collisions;
2. injuries to a third party;
3. acts of the captain or master of ship
PROVIDED THAT the plaintiff abandons the vessel with all her
appurtenances and equipment and freightage earned during the last
voyage.
NOT AVAILBLE?
1. Injury or death to a passenger is due either to the
fault of shipowner, charterer or other person in
control of the vessel
2. Injury or death of passenger due to concurring fault
of said person and the captain or master of the
vessel
3. The vessel is INSURED and the injury or damage to
persons or property is covered by separate
insurance
4. Workmen’s compensation claims.
DOCTRINE OF INSCRUTABLE FAULT – where the fault is
established but it cannot be determined which of the two vessels
were at fault, both shall be deemed to have been at fault
In collision, the vessel at fault shall indemnify the damages sustained
or losses incurred. If both vessels were at fault, each shall suffer their
onw dmaages and both shall be solidarily liable to others.
MARITIME PROTEST
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It is the written statement by the master of the vessel attested by including the master and crew. Charterer is the owner pro hac
proper officer or notary t the effect that damages has been suffered vice of the vessel
by the ship.
3. Contract of Affreightment – COMMON CARRIER shipping
Protest is required under the following cases: space leased by the owner in part or as a whole to carry goods
for others
1) Vessel makes arrival under stress 1. Time charter
2) Vessel is shipwerecked 2. Voyage/trip charter
3) Vessel has gone thorug a hurricane or the captain believes
that the cargo has suffered damages or averages
4) Maritime collisions
4. Liability of shipowners and shipping agents – SOLIDARILY
LIABLE

ARRIVAL UNDER STRESS Ship Agent – entrusted with the provisioning and representing
the vessel at port
It is the arrival of vessel at the nearest port if during the
voyage, the vessel cannot continue the trip to the port of destination 5. Liability for acts of captain
due to: 6. Accidents and damages in maritime commerce
7. General average (compare with Particular average)
b) Lack of provisions
c) Well founded fear of seizure GENERAL AVERAGE
d) By reason of any accident of the sea disabling it to
navigate The insurer of the vessel or cargo that is saved is liable for
general contribution.

- Includes all damages and expenses which

1. Charter parties – agreement between the carrier and another are deliberately caused in order to save the
by which the entire ship or part of it is LET by the owner to vessel and its vargo from real and known
another for a specific period. risk.

REQUISITES:

2. Bareboat/demise charter- PRIVATE CARRIER 1. Common danger to ship and cargo

2. That for the common safety part of the vessel or cargo is
The whole vessel is let to chartere which transfers him the entire sacrificed deliberately
command and possesnt and control over the navigation 3. From the expenses or damages caused, follows the
successful saving of the vessel and cargo

5
 4. Expenses or damages should have been incurred after
taking legal steps and authority
FORMALITIES OF CLAIM FOR CONTRIBUTION
1) There must be resolution of the
captain adopted after
deliberation after hearing all the
persons interested. Onjections must
be registered
2) Resolution must be entered in the
logbook. It must be signed by all
persons present in the hearing and
by the captain and all officers of the
vessel.
2. If not apparent – file notice of damage within 3 days
from delivery
12. Period of prescription
1. 1 year after delivery of goods or date when goods
should have been delivered – otherwise, CARRIER
and ship will be discharged from all liability for loss
or damage
a
13. Limitation of liability
When the unseaworthiness that caused the loss of the vessel was
not due to the fault or negligence of the shipowner, liability is limited
to its pro rata share in the insurance proceeds.

PARTICULAR AVERAGE
THE WARSAW CONVENTION  & AVIATION LAW
Only the insurer of the damaged cargo or vessel is liable for
particular average if covered by the policy. 1. Applicability
2. Limitation of liability
- All expenses and damages caused to the 3. Liability to passengers
vessel or cargo which have not inured to 4. Liability for checked baggage
the benefit and common profit of all thre 5. Liability for hand-carried baggage
persons interested in the vessel and her 6. Willful misconduct
cargo
8. Collisions and allisions

Collision – two moving vessel strike each other

Allision – one moving, one stationary

9. Carriage of Goods by Sea Act – international carriage

10. Application
11. Notice of loss or damage
1. If apparent – file notice immediately

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PUBLIC UTILITIES LAW
1. Public Service Act and other governing laws.
Public Service includes every person that now or hereafter
may own, operate, manage or control in the Philippines, for hire
or compensation, with general or limited clientele, whether
permanent, occasional or accidental done for general business
purposes, any common carrier with or without fixed route and
whatever may be its classification engaged in the transportation
of passengers or freight, or both, canal, irrigation system, gas,
electric light, heat and power, water supply power, petroleum,
sewerage system, wire or wireless communication systems, wire
or wireless broadcasting stations and stations and other similar
public services.
2. Definition of public utility
It is a business or service engaged in supplying the public
with some commodity or service of public consequence such
as electricity, gas, water, transportation, telephone or
telegraph serviceor essential to the general public.
3. Necessity for certificate of public convenience
EXCEPTIONS TO NECESSITY OF CERTIFICATE OF PUBLIC
CONVENIENCE:
A. Public service owned or operated by
government entities or GOCC
B. Grantees of legislative franchise when
expressly exempted from obtaining a
certificate from the Commision
c. those expressly exempted from the jurisdiction
of the Commission by Secton 13 of this Act
CERTIFICATE OF PUBLIC CONVENIENCE
It is issued whenever the Commission finds that the
operation of the proposed public service will promote the public
interest in a proper and suitable manner for which a municipal or
legislative franchise is no necessary.
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
It is issued upon approval of any franchise or privilege
granted by any political subdivision of the Philippines when in the
judgment of the Commission, such franchise or privilege will properly
conserve the public interest.
Requisites for the grant of certificate of public convenience or
certificate of public convenience and necessity
a. Applicant must be CITIZEN of the
Philippines or a corporation or association
organized under the laws of the Philippines
at least 60% of whose capital is owned by
such citizens;
b. FINANCIALLY CAPABLE of undertaking the
proposed service and meeting the
responsibilities incident to its operation;
c. Operation of the public service proposed will
PROMOTE THE PUBLIC INTEREST
Prior applicant rule
Where there are various applicants for a public utility over
the same territory, all conditions being equal, priority in the filing of
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the application for a certificate of public convenience becomes an
important factor in granting or refusal of certificate.
Prior operator rule
It means that before permitting a new operator to invade the
territory of another already established with a certificate of public
convenience, the prior operator must first be given the
opportunity to extend its service in order to meet public needs in
the matter of transportation.
It means that a public utility operator should be shielded from
ruinous competition by affording him an opportunity to improve
his equipment and service before allowing a new operator to
serve in the same territory he covers.
WHEN PRIOR OPERATOR RULE IS NOT APPLICABLE
a. Where public interest would be better served by the
new operator as when the prior operator has failed
to render adequate, sufficient and satisfactory
service and had violated condition in the certificate.
b. Where the old operator has failed to make an offer to
meet the increase traffic
c. Where the certificates of public convenience granted
to the new operator is a maiden certificate, which
does not overlap with the entire route of the old
operator but only a short portion thereof as a
convergence point
d. If the application of the rule will be conducive to
monopoly of service and contrary to the principle
that promotes healthy competition
Ruinous competition
6. Fixing of rate
7. Rate of return
8. Exclusion of income tax as expense
9. Unlawful arrangements
     a. Boundary system
It is an arrangement between the owner of the motor vehicle
who holds a certificate of public convenience and the driver who
uses the motor vehicle for a fixed number of hours and pays to the
owner a fixed amount and shoulders the gasoline used, the excess
of the total amount of fares earned or collected over and above the
amount paid to the owner being the share of the driver in liue of
fixed compensation.
The relationship of employer and employee exists between
the owner of a bus or a jeepney and its driver and conductor
operating under the boundary system.
      b. Kabit system
It is an arrangement whereby a person who has been
granted a certificate of public convenience allows another person
who owns motor vehicles to operate under such franchise for a fee.
It is void and existent for being contrary to public policy
under Article 1409 of the Civil Code of the Philipines.
10. Approval of sale, encumbrance or lease of property
REGISTERED OWNER RULE
The registered owner of a motor vehicle is liable for the
consequences which the motor vehicle may be involved.
In case of motor vehicle mishaps. The registered owner of
the motor vehicle is considered as the employer of the tortfeasor
8
driver, and is made primarily liable for the tort committed by the
latter.