COLEGIO DE STA. ANA DE VICTORIAS, INC.

Osmeña Avenue, Victorias City, Negros Occidental, 6119

LESSON 1 LAW ON COMMON CARRIERS

Law on Common Carriers

The primary law that governs common carriers is the Civil Code of the Philippines
as clearly implied in Article 1766 thereof which states that "in all matters not regulated
by this Code, the rights and obligations of common carriers shall be governed by the
Code of Commence and special laws."

The primary law in transportation law is the civil code, particularly the provisions on
common carriers. The suppletory laws are the Code of Commerce, and special laws like
the COGSA (Carriage of Goods by Sea Act), Salvage Law, Warsaw Convention, Tariff and
Customs Code.

What is included in the law?

1. Waiting time - just because a person is in the airport waiting for the flight to board,
does not mean that transportation has not started.
2. Loading and unloading with respect to transportation of goods.
3. Stopping in transit - when one takes a long flight, transit stops are also included even
if passenger is required to disembark and take all his belongings with him.
4. All other accessorial services in connection with the loaded movement - so it could be
anything, like when you are in HK, you are allowed to check-in the City, the movement
of your luggage from the city check in to the airport is already included in the term
transportation.

The Law
Article 1732. Common carriers are persons, corporations, firms or occasions 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.
Common Carrier – company that transports goods and services from one place to
another for a fee.

Elements:
1. must be a person, association, corporation, or firms
2. Engaged in a business
3. Transports persons or goods or both by land, water or air
4. Offers service to the public
5. Accepts compensation for services
If one element is missing, then it is not a common
carrier.

Discussion of the Law

A common carrier is defined as one holding itself out to the public as engaged in the
transportation of freight or passenger for hire. It is one who is in the business of
transporting goods or persons for hire, as a public utility. A private carrier, in contrast, is
not in the business of transporting public employment, but hires out to deliver goods
(not passengers) in particular cases. Both the Civil Code of Commerce give clear-cut
divisions between contracts of carriage of cargo and contracts of carriage of passengers,
because the rights and defenses in each kind of contracts are different from the other.
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 COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119

Nature of Contract of Carriage

A contract to transport passengers is quite different in kind and degree from any other
contractual relation, and this is because of the relation which an air carrier sustains with
the public. It invites people to avail the comforts and advantages it offers. The contract
of carriage therefore, generates a relation attended with a public duty. Neglect or
malfeasance of the carrier's employees naturally could give ground for an action for
damages.

a contract of carriage or transportation is one whereby a certain person or association

of persons obligate themselves to transport persons, things, or news from one place to
another for a fixed price.

Responsibility of Common Carriers

The Law
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.

This duty of common carriers to exercise the highest degree of diligence commences
from the moment the person who purchases the ticket from the carrier presents himself
at the proper place and in a proper manner to be transported.

Article 1755. A common carrier is bound to carry the passengers safely as far as human
care and foresight can provide, using the utmost diligence of very cautious persons, with
due regard for all the circumstances.
Hence, the moment the passenger is carried by a common carrier, the latter has to
observe extraordinary diligence from the point of departure to the point of destination
to see to it that the passenger suffers no harm while in transit.

Article 1756. In case of death of or injuries to passengers, common carriers are

presumed to have been at fault or to have acted negligently unless they prove that they
observed extraordinary diligence as prescribed in Articles 1733 and 1755.
In simple words, the common carrier is presumed negligent if the passenger dies or is
injured in the course of the transportation and may thus be exposed to claims for
damages.

Article 1757. The responsibility of a common carrier for the safety of passengers as
required in Articles 1733 and 1755 cannot be dispensed with or lessened by stipulation,
by the posting of notices, by statements on tickets or otherwise.
The obligation to transport the passengers safely cannot be dispensed with or lessened
by the carrier by the posting of notice, or statements on tickets.

Enforcement of liability of common carriers

The liability of common carriers can be enforced on the following causes of action:
1. In case of death or injury caused to passengers, the victims may file a case of
breach of contract of carriage or culpa contractual against the owner of the
common carrier.

Said amount is computed and derived using the formula (2/3 x [80- age of the
complainant when the injury is sustained] = life expectancy) adopted in the
American Expectancy Table of Mortality or the actuarial of Combined Experience
Table of Mortality. From such formula, [Dionisio] is expected to live for 18 years,
which is equivalent [to] about 6570 days. For each day, [Dionisio] is claiming
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 COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119

P80.00 as he is expected to work for 8 hours a day with his amputated arm or to
enjoy the same for at least 8 hours a day (or is claiming P10.00 for each hour) for
18 years (6570 days). The amount that can be computed thereof would be
P525,600.00 (6570 days x P80.00). [Dionisio] then [rounded] it off to
P500,000.00, the moral damages consisted [of] his moral sufferings due to the
[loss] of his right arm for life;[8]

2. In case of death or injury caused to a stranger or pedestrian, the victim may

file a criminal complaint against the driver of the common carrier for reckless
imprudence resulting in homicide and damage to property. The victim may also
file a civil suit against the common carrier and its driven on the ground of culpa
or quasi- delict.

Criminal Penalties
Hit and Run. When a driver accidentally strikes a pedestrian, but the driver also
stops at the scene to follow proper post-accident protocol, the harshest
consequences might be a personal injury lawsuit and a higher car insurance
premium. But a driver who strikes a pedestrian and then flees the scene will
likely face criminal charges, possibly even a felony arrest for hit and run, and a
potential prison sentence.

DUI/DWI. After a car-pedestrian accident in which the driver is under the

influence of alcohol or drugs, the driver can likely look forward to a DUI arrest
and conviction. And since striking and injuring a pedestrian while drunk is just
the sort of "aggravating circumstance" likely to enhance the severity of any
sentence that's handed down, the driver will probably face more jail time, higher
fines, and harsher driver's license penalties (i.e. a longer license suspension) than
those that might follow a non-injury DUI.

Vehicular Manslaughter (or Involuntary Manslaughter). Pedestrian deaths

caused by car-versus-pedestrian accidents account for 11 percent of all traffic
accident deaths, according to a recent study by the National Highway Traffic
Safety Administration. If a pedestrian dies as a result of a traffic accident in
which the driver is at fault, that driver may face criminal charges, but only under
very specific circumstances.

If the driver was operating a vehicle in such an extremely reckless manner right
before the accident -- driving at 100 miles per hour in a school zone, or driving
while intoxicated, for example -- then any pedestrian death resulting from the
crash may spur a criminal charge of vehicular manslaughter or involuntary
manslaughter.

Damages recoverable from common carriers

In an action based on a culpa contractual or culpa aquiliana, the damages that
are recoverable are as follows: actual damages, compensatory damages, moral
damages, exemplary damages, death indemnity and attorney's fees. Nominal
damages may be awarded in case moral or exemplary damages may not be
awarded.

a. Actual damages consist in expenses for medicine, hospitalization, etc.

b. Unrealized profits are recoverable as compensatory damages which shall
be fixed by determining in the next yearly income of the injured or deceased
passenger and multiplying the same by the number of years that he was
expected to live or lead a gainful existence as determined by mortality tables or
life insurance companies of the Philippines.
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 COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119

c. Moral damages may be awarded when the mishap resulted in the death of
a passenger, or when the heirs of the deceased suffered mental anguish, or
when the carrier was guilty of fraud or bad faith, even if death did not result. The
big amount of damages will be awarded in view of the importance of the person
of the passenger. - Moral damages include physical suffering, mental anguish,
fright, serious anxiety, besmirched reputation, wounded feelings, moral shocks,
social humiliation, and similar injury.
d. Exemplary or corrective damages are awarded by way of example or
correction of the public good, or when the common carrier acted in wanton,
reckless and oppressive manner. an award given to victims when the conduct of
the individual who caused the victim harm is willfully malicious, violent,
oppressive, fraudulent, wanton, or grossly reckless. While the immediate
beneficiaries of the standard of extraordinary diligence are, of course, the
passengers and owners of cargo carried by common carrier, they are not the
only persons that the law seeks to benefit. Article 2231 of the Civil Code
explicitly authorizes the imposition of exemplary damages in case of quasi-
delicts "if the defendant acted with gross negligence."
Not every case will give rise to an award of punitive and exemplary damages,
since most defendants do not usually act maliciously when they harm someone.
For example, if a driver forgets to check his blind spot before changing lanes and
hits the car driving next to him, an award for punitive damages would not be
appropriate. However, if a driver gets into his car after getting drunk at the bar
all day, drives 75 mph through a school zone, and hits a bus full of elementary
school students, then punitive damages may be awarded.
e. Award for death indemnity is in accordance with current rulings of the
Court. This means they will pay for the costs of a funeral for you or your
passengers regardless of who caused the accident.
f. Award for attorney's fees may be recovered when exemplary damages are
awarded. Under Article 2008 of the Civil Code, attorney's fees may be recovered
when exemplary damages are awarded. In the case of Metro Manila Transit
Corporation v. Court of Appeals [298 SCRA 945] (1998) it was held that an award
of P50,000 as attorney's fees is reasonable.
g. In case moral damages cannot be awarded without proof of the carrier's
bad faith, ill will, malice or wanton conduct, conduct nominal damages may be
allowed under the circumstances. Nominal damages may be awarded as
provided under Articles 2221 and 2222 of the Civil Code of the Philippines for the
purpose of indemnifying the victim for any loss suffered by him. Nominal
damages are recoverable if no actual, substantial, or specific damages were
shown to have resulted from the breach. The amount of such damages is
addressed to the sound discretion of the court, taking into account the relevant
circumstances.
Nominal damages are generally recoverable by a plaintiff who successfully
establishes that he or she has suffered an injury caused by the wrongful conduct
of a defendant, but cannot offer proof of a loss that can be compensated.

Discussion of the Law

As soon as the passenger puts his foot on the platform, the obligation of
extraordinary diligence of the common carrier begins. The relation of carrier and
passenger does not cease at the moment the passenger alights from the carrier's
vehicle at a place selected by the carrier at the point of destination, but
continues until the passenger has had a reasonable time or a reasonable
opportunity to leave the carrier's premises.

A certificate of public convenience is not a requirement in order for a common

carrier to incur liability. Such liability arises from the moment a person or firm
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 COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119

acts as a common carrier, without regard to whether or not such carrier has
been granted a certificate of public convenience or has complied with the
requirements of the applicable implementing regulations.

The term "extraordinary diligence” has been defined as the standard of care
required of common carrier bringing safely its passengers (and goods) from one
place to another.

In a contract of carriage of passengers, it is the obligation of the common carrier to

bring the passengers safely to the point of destination, if injured, or death occurs, the
presumption of negligence automatically arises, and the common carrier can be held
liable if he fails to prove extraordinary diligence for the duration of the carriage.

LESSON 2 NATURE OF AIRLINE, BUS, AND SHIPPING TICKETS

The best evidence of a contract of carriage is the passage ticket. Under jurisprudence,
an airline, bus, or shipping ticket is a contract of adhesion (it is a standardized contract
form that offers goods or services to consumers on essentially a "take it or leave it" basis
without giving consumers realistic opportunities to negotiate terms that would benefit
their interests.) considering that all the provisions thereof are prepared and dratted only
by the carrier. The only participation left of the other party is to affix his signature
thereto. In such situation, the Supreme Court ruled that the terms thereof must be
interpreted against the party who drafted the same, in this case the carrier.

Discussion of the Law

Such contracts of adhesion are not entirely prohibited and are in fact binding
regardless of whether or not the passenger or shipper had read the provisions thereof.

Thus, it was held that even if passenger had not signed the plane ticket, he is
nevertheless bound by the provisions thereof. Such provisions have been held to be part
of the contract of carriage, valid and binding upon the passenger regardless of the
latter’s knowledge or assent to the regulation. The one who adheres to the contract is in
reality free to reject it entirely; if he adheres, he gives his consent. Even if the conditions
are printed in small letters does not make the ticket or bill invalid.

However, the courts will exercise greater vigilance when dealing with contracts of
adhesion in that the said contracts must be carefully scrutinized in order to protect the
weaker party from deceptive scemes contained in ready-made stipulations.

LESSON 3 ACRREDITATION AND STANDARD REQUIREMENTS OF TOURISM

VEHICLES

Accreditation of Transportation Vehicles by the Department of Tourism

This involves the minimum requirements for the operation, establishment, and
maintenance of transportation vehicles in order to be accredited by the Department of
Tourism. Under the Tourism Act of 2009 and the implementing Rules and Regulations of
R.A. No. 9593, Primary Tourism Enterprises shall be periodically required to obtain
accreditation from the DOT as to the quality of their facilities and standard of services.
Tourist transport services, whether for land, sea and air transport exclusively or majority
of its seats are for tourist use, including airport taxis and tourist drivers, are already

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 COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119

classified as Primary Tourism Enterprises; hence, accreditation by the Department of

Tourism is now mandatory.

Standard Requirements for Tourism Land Transport Vehicles

To the registrable, every tourist transport must be found roadworthy upon inspection by
a team from the Department of Tourism.
 In the case of bus or coaster, it shall not be more than ten (10) years reckoned
from the year of manufacture.
 For a tourist car, it shall not be more than five (5) years reckoned from the year
of manufacture, provided however, the tourist luxury cars shall have a minimum
allowable age of ten (10) years.
 For this purpose, luxury cars shall refer to passenger cars with engine
displacement of not less than 2190 and which are not locally
assembled/manufactured.
 Every tourist transport shall be provided with a left-hand drive; it shall be
properly equipped with adequate air-conditioning units; and it shall be provided
or installed with at least one portable fire extinguisher for the protection of its
passengers.
 For tourist buses or coasters, a public address system – it is an electronic system
comprising microphones, amplifiers, loudspeakers, and related equipment shall
be installed.
 Every tourist transport unit shall be provided with the first-aid kit and an
adequate supply of emergency medicines.
 It shall have clean and comfortable seats, and shall have enough legroom and
sufficient storage space.
 Every tourist transport operator shall provide an adequate garage and repair
shop for the maintenance of its equipment, and a parking space sufficient to
accommodate all its registered units.

Standard Requirements for Tourist Water Transport Vessels

 There should be at least one restroom each with toilet and washing facilities for
male and female located at the passenger accommodation area.
 There should be a common toilet and bath at the cabin for a long-haul trip.
Tissue paper, soap, and hand/paper towel should also be provided.
 A receptionist should be available to usher in guests.
 There should be a refreshment which should be well-stocked at all times.
 In case of long-haul trips, a dining area capable of seating, at least, one-fourth
(1/4) of the total passengers at one serving should be provided with appropriate
and well-maintained furniture.
 There should be a promenade or airing space at the upper deck for the exclusive
use of passengers.
 There should be a baggage area provided with racks or similar and safe storage
in the passenger accommodation area.
 Adequate number of well-trained, well-groomed, experienced, efficient and
courteous staff should be employed. They shall wear clean uniforms at all times.
Frontline staff should have a good speaking knowledge of English.
 Adequate lighting arrangement and fixtures should be installed in all levels of
vessel in accordance with the Philippine Merchant Marine Rules and Regulations.

Standard Requirements for Tourist Air Transport

 Adequate life – saving devices and adequate communication equipment should
be provided in accordance with the requirements prescribed by ATO.

Lesson 4 DOCUMENTS REQUIRED TO SUPPORT APPLICATION TO OPERATE AS

TOURIST TRANSPORT OPERATOR
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 COLEGIO DE STA. ANA DE VICTORIAS, INC.
Osmeña Avenue, Victorias City, Negros Occidental, 6119

Documents required to support application to operate as tourist transport operator

a. Mayor's Permit and/or Municipal License
b. Business name certificate and all amendments thereto, if any, in the case of
single proprietorship. In the case of a corporation or partnership, a certified true
copy of the Articles of Incorporation its By-laws or Articles of Partnership and
amendments thereto, if any, duly registered with the Securities and Exchange
Commission.
c. Proof of ownership or contract of lease over an area adequate to serve as
maintenance depot and garage for all its units (not applicable to water transport)
d. A list of names of all officials and employees, and their respective designations,
nationalities, home address, certified correct under oath by the general
manager/president
e. Such other papers or documents as may be required from time to time by the
Department.

For Land and Transport

a. Copy of the LTFRB certificate of franchise or authorization for tourist car/bus
service
b. A Copy of the transportation rates as approved by LTFRB.
c. Pictures of the vehicles showing the side, back and front views thereof with the
company's name and logo imprinted at its rear and sides, respectively.
d. Such other papers or documents as may be required from time to time by the
Department.

For Water Transport

 A copy of Certificate of Public Convenience and Necessity issued by the Maritime
Industry Authority.
 A copy of the transportation rates as approved by the Maritime Industry
Authority Pictures of the vessel showing the side, back and front views thereof
with the company name and/or logo imprinted at its sides.
 A copy of routes to be served and schedules.
 Such other papers or documents as may be required from time to time by the
Department.

For Air Transport

 A copy of the CPCN issued by the CAB
 A copy of the transportation rates as approved by the CAB.
 Pictures of the plane showing the side, back and front views thereof with the
company's name and/or logo imprinted at its sides.
 List of operations and maintenance officials and personnel with their ATO
license.
 Copy of the routes to be served and flight schedules.
 Such other papers or documents as may be required from time to time by the
Department.

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