PHILIPPINE CHRISTIAN UNIVERSITY

COURSE CODE: TRANSPO

COURSE TITLE: TRANSPORTATION LAW
COURSE CREDIT: 2 UNITS
FACULTY: KRISYL M. CANCINO
EMAIL ADDRESS: krisyl.cancino@gmail.com
TERM/ACADEMIC YEAR: SECOND SEMESTER SCHOOL YEAR 2022-2023

Suggested Textbook: Essentials of Transportation and Public Utilities Law by Timoteo

Aquino and Ramon Hernando, 2020 ed.

LEARNING OBJECTIVES:

1. Knowledge/Recollection: Know and recall basic provisions of the Rules of Court

2. Comprehension: Explain, identify and differentiate one rule from another
3. Application: Apply pertinent rule or provision on a case-to-case situation
4. Analysis and Evaluation: Analyze correct application of pertinent rule or
provision based on existing jurisprudence and rationale of the provision

ASSESSMENT/GRADING SYSTEM:
The student will be graded according to the following:

Recitations and Quizzes (quiz is 30%

equivalent to 1 recitation)
Midterms 30%
Finals 40%
Total 100%

Suggested Textbook: Essentials of Transportation and Public Utilities Law by Timoteo

Aquino and Ramon Hernando, 2020 ed.

COVERAGE

I.GENERAL CONCEPTS

1.Contract of Transportation

What is a contract of transportation (Art. 1732, Civil Code)

Air France vs. Zani, GR 199767, March 13, 2019

Elements of contract of carriage

Sanico vs Colipano, GR 209969, Sept. 27, 2017

Kinds of Contract of Transportation

1.1 Parties to a Contract of Transportation

Jesus Vda de Nueca vs. The Manila Railroad Company, No. 31731-R, Jan. 30, 1968

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 Baliwag Transit vs CA, GR 111127, Jan. 31, 1989
Sps. Fabre vs. CA, GR 111127, July 26, 1996
Everett Steamship vs. CA, GR 122494, Oct. 8, 1998 (Carriage of Goods)
Passengers carried gratuitously or under reduced fare (Art. 1758, Civil Code)
Is subcontractor,

1.2 Perfection of Contract of Carriage

Contract to carry at some future time vs. contract of carriage itself

British Airways vs CA, GR 92288, Feb. 9, 1993

As to goods

Mauro Ganzon vs. CA, GR L-48757, May 30, 1988

Compania Maritima vs. Insurance Company of North America, GR L-18965, Oct. 30,
1964

As to passengers

Jesus Vda de Nueca vs The Manila Railroad Company

Compania Maritima vs Insurance Co (is written contract required)
Korean Airlines vs CA, GR 114061, Aug. 3, 1994
LRTA vs Natividad, GR 145804, Feb. 6, 2003
Dangwa Transportation vs CA, GR 95582, Oct. 7, 1991 (continuing offer rule)

2. Common Carriers

2.1 Definition, Art. 1732, Civil Code

De Guzman v. CA, GR L-47822, Dec. 22, 1988

2.2 Nature of Business

Kilusang Mayo Uno vs. Garcia, 239 SCRA 386, Dec. 23, 1994
Heirs of Catalina Mendoza vs. ES Trucking, GR 243237, Feb. 17, 2020
De Guzman vs. CA, 16 SCRA 612, Dec. 22, 1988
Cebu Salvage Corporation vs. Philippine Home Assurance Corporation, G.R. No. 150403,
January 25, 2007
Philippine American General Insurance Company vs. PKS Shipping Company, G.R. No.
149038, April 9, 2003
Spouses Cruz v. Sun Holidays, G.R. No. 186312, June 29, 2010

2.3 Tests to Determine Common Carrier

First Philippine Industrial Corp. v. CA, 300 SCRA 661

National Steel Corp v. CA, 283 SCRA 45, 61, 1997
Heirs of Catalina Mendoza vs. ES Trucking, GR 243237, Feb. 17, 2020 (CPC not a reqt for
one to be common carrier)
LTFRB vs Hon. Valenzuela, GR 242860, March 11, 2019

2.4 Means of Transportation

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 First Philippine Industrial Corp. v. CA (pipelines)

2.5 Example of Common Carriers

Virgines Calvo v. UCPB General Insurance Co., GR 148496, March 19, 2002 (customs
broker)
2100 Customs Brokers vs Philam Insurance, June 10, 2020 (customs broker)
Torres-Madrid Brokerage vs. Feb Mitsui Marine Insurance, July 11, 2016 (customs
broker)
Phil. American General Insurance v. PKS Shipping, GR 149038, April 9, 2003
Asia Lighterage and Shipping v. CA, GR 147246, Aug. 19, 2003 (lighterage)
Sps Cruz v. Sun Holidays, GR 186312, June 29, 2010 (beach resort operator)
Fabre v. CA, 259 SCRA 426, 1996 (school bus operator)
Sps Perena v. Nicolas, GR 157917, Aug. 29, 2012 (school bus)
Unsworth Transport v. CA, July 26, 2010 (freight forwarder)
Phil. American General Insurance vs PKS Shipping, GR 149038, April 9, 2003 (barge
operator)
Asia Lighterage vs CA, GR 147246, Aug. 19, 2003 (barge operator)
Unitrans vs Insurance Co. of North America, GR 203865, March 13, 2019
Loadmasters vs Glodel Brokerage, GR 179446, Jan. 10, 2011 (customs broker)
C.V. Gaspar Salvage & Lighterage v. LGU Insurance Company Ltd., G.R. Nos. 206892
and 207035, February 3, 2021

2.6 As Ancillary Business

De Guzman v. CA, 168 SCRA 612, 1988

2.7 Other Cases

Crisostomo v CA, GR 138334, Aug. 25, 2003, 409 SCRA 528 (travel agency)
Cargolift vs L Acuario, GR 146426, June 27, 2006 (towage)
Phil. First Insurance vs Wallem (arrastre operator)
Asian Terminals vs. Philam Insurance (arrastre operator)
Oriental Assurance vs. Ong (arrastre operator)
Summa Insurance vs CA, Feb. 5, 1996 (arrastre operator)
Mindanao Terminal vs Phoenix Assurance, May 8, 2009 (stevedoring)
Fireman’s Fund Insurance v. Metro Post Service, 182 SCRA 455
Eastern Shipping vs CA, 234 SCRA 78

2.8 Common Carriers vs Private Carriers

Planters Products v. CA, GR 105090, Sept. 15, 1993

Sps Perena vs. Sps Nicolas, GR 157917, Aug. 29, 2012 (tramping service)

National Steel Corp. vs CA, 283 SCRA 45, Dec. 12, 1997
2.9 Effect of Charter Party

Caltex (Phils) v. Sulpicio Lines, 315, SCRA 709, 1999

Planters Products vs CA, GR 101503, Sept. 15, 1993

3. Governing Laws

Art. 1766, Civil Code

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 a) Coastwise shipping (Art. 1732-1766, Civil Code; Code of Commerce)
b) Carriage from foreign ports to RP ports (Civil Code, Code of Commerce,
COGSA)
c) Carriage from RP ports to foreign ports (Art. 1753, NCC)
Natl Devt Co vs CA, 164 SCRA 593
d) Overland transportation (Civil Code, Code of Commerce)
e) Air transportation (Civil Code, Code of Commerce, Warsaw Convention)
Alitalia v. IAC, 192 SCRA 9
RA 10668

4. Obligations of Common Carriers

4.1 Basic Obligations

4.2 Duty to Accept Goods for Transport

Sec. 16 of RA 9295 (2004)

Sec. 6 of Economic Regulation no. 4, CAB

When carriers may validly refuse to accept goods

(a) FC Fisher vs. Yangco Steamship, GR 8095, Nov. 5, 1914 (dangerous objects)
MARINA MC 101(1995)

Refusal of passenger – Air France vs Zani, GR 199767, March 13, 2019

(b) Goods unfit for transportation

MARINA MC 101(1995)
Art. 356, 357, Code of Commerce
Art. 1742, Civil Code

(c) Livestock will be exposed to disease

RA 8485 or The Animal Welfare Act

4.3 Duty to Special Classes of Passengers

RA 7277, Magna Carta for Disabled Persons

RA 7432, Expanded Senior Citizens Act

4.4 Duty to Make Timely Delivery of Goods

Art. 358, Code of Commerce

Saludo vs. CA, GR 95536, March 23, 1992
Maersk Line vs CA, 222 SCRA 108, May 17, 1993

4.5 Consequences of Delay

Art. 1740, 1747, Civil Code

Art. 370, 371, 698, Code of Commerce

Trans-Asia Shipping Lines vs CA, GR 118126, March 4, 1996

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 Maersk Lines vs CA, GR 94761, May 17, 1993
Bill of Rights of Passengers under DOTC-DTI Joint AO (2012)
CAB Economic Regulation no. 9
Marina MC no. 112

4.6 Duty to Exercise Extraordinary Diligence

Art. 1733, Civil Code

4.6.1 Meaning of Extraordinary Diligence

In transport of passengers

Art. 1755, Civil Code

Kapalaran Bus Lines vs. Coronado, 176 SCRA 792, Aug. 25, 1989
Juntilla vs. Fontanay, 136 SCRA 624, May 31, 1985
Negros Navigation vs CA, GR 110398, Nov. 7, 1997
Mecenas vs. CA, GR 88052, Dec. 14, 1989
Calalas vs CA, GR 122039, May 31, 2000
Nocum vs LTB, GR L-23733, Oct. 31, 1969
PAL vs. CA, 106 SCRA 391, July 31, 1981
Trans-Asia Shipping v. CA, 254 SCRA 260, 1996 (seaworthiness of vessel)
Cacho vs Manahan, GR 203081, Jan. 17, 2018
Marikina Auto Line Transport vs. People, GR 152040, March 31, 2006

In transport of goods

Compania Maritima vs CA, GR K-31379, Aug. 29, 1958

Westwind Shipping vs UCPB General Insurance, GR 200289, Nov. 25, 2013
Federal Express vs Antonino, GR 199455, June 17, 2018
Annie Tan vs. Great Harvest Enterprises, GR 220400, March 20, 2019
Philippine Home Assurance vs. CA, GR 106999, June 20, 1996 (proper storage of goods)
Aboitiz Shipping vs Insurance Company of North America, GR 168402, Aug. 6, 2008
Art. 359, Code of Commerce
Aleson Shipping Lines vs. CGU Intl., GR 217311, July 15, 2020
Loadstar Shipping vs. Pioneer Asia Insurance, GR 157481, Jan. 24, 2006 (improper
deviation)
Improper Deviation (Art. 359 Code of Commerce, overland transportation)
Trans-Asia Shipping vs CA, 254 SCRA 260, 1996
Caltex Phils. vs. Sulpicio Lines, 315 SCRA 709, Sept. 30, 1999

Statutory Duties to Passengers

Art. 1759, 1763, New Civil Code

Carriage by Train (duty of railroad companies)

PNR vs Vizcara, GR 190022, Feb. 15, 2012

Ma-Ao Sugar Central vs CA, GR 83491, Aug. 27, 1990
EM Wright vs Manila Electric, GR L-7760, Oct. 1, 1914
Brinas vs People, GR L-30309, Nov. 25, 1983
US vs Bonifacio, GR L-10563, March 2, 1916

4.6.2 Non-Delegable Duty

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 Westwind Shipping vs UCPB General Insurance, GR 200289 and 200314, Nov. 25, 2013

4.6.3 Presumption of Negligence

Art. 1756, 1734, 1735, New Civil Code

Regional Container Lines vs The Netherlands Insurance, GR 168151, Sept. 4, 2009
Air France vs. Gillego, GR 165266, Dec. 15, 2010
Belgian Overseas Chartering v. Phil. First Ins., GR 143133, June 5, 2002
Canlas v. CA, GR 122039, May 31, 2000
Heirs of Ochoa vs. GS Transport, GR 170071 and 170125, March 9, 2011

5. Defenses of Common Carriers

5.1 Exercise of extraordinary diligence, exempting causes, fortuitous events (requisites)

Art. 1734, 1735,1739, 1742, 1743, 1174, NCC

Aleson Shipping Lines vs. CGU Intl., GR 217311, July 15, 2020 (collision of vessel)
Fortune Express v. CA, GR 119756, March 18, 1999 (seizure of bus)
Torres-Madrid vs. Feb Mitsui, GR 194121, July 11, 2016 (hijacking)
Quisumbing vs CA, GR L-50076, Sept. 14, 1990 (hijacking of plane)
Tan vs Great Harvest (hijacking)
De Guzman v. CA, GR L-47822, Dec. 22, 1988 (hijacking)
Yobido vs CA, GR 11303, Oct. 17, 1997 (tire explosion)
Bayasen vs. CA, GR L-25785, Feb. 26, 1981 (skidding)
Japan Airlines vs CA, GR 118664, Aug. 7, 1998 (volcanic eruption)
Ganzon vs CA, GR L-48757, May 30, 1988 (order of mayor)
Pilapil v. CA, GR 52159, Dec. 22, 1989 (throwing of rocks)
Necesito vs Paras, GR L-10605, June 30, 1958 (manufacturing defect)
Asia Lighterage vs CA, GR 147246, Aug. 19, 2003 (typhoon)
Eastern Shipping vs IAC, May 29, 1987, 150 SCRA 469 (fire)
Juntilla vs Fontanar, 136 SCRA 624, May 31, 1985 (tire explosion)
Cokaliong Shipping v. UCPB, GR 146018, June 25, 2003 (fire)
Delsan Transport v. CA, GR 127897, Nov. 15, 2001 (implied seaworthiness)
Phil Charter Insurance Corp. vs. Unknown Owner of M/V Honor, GR 161833, July 8,
2005
Phil. American General Insurance v. PKS Shipping, GR 149038, April 9, 2003

Other Statutory Duties of Common Carriers

1)acts of employees (Art. 1759, NCC)

Maranan vs Perez, GR L-22272, June 26, 1967

Cangco vs Manila Railroad Company, GR L-12191, Oct. 14, 1918
Ma-Ao Sugar Central vs CA, GR 83491, Aug. 27, 1990

2) theft of employees (Art. 618.2, Code of Commerce)

3) acts of other passengers, third persons (Art. 1763, NCC)

GV Florida Transport vs Heirs of Battung , GR 208802, Oct. 14, 2015

Bachelor Express vs CA, GR 85691, July 31, 1990
Fortune Express vs CA, GR 119756, March 18, 1999
Gillaco vs Manila Railroad Company, GR L-8034, Nov. 18, 1955

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 4) contributory negligence (Art. 1741, 1761-62, NCC)

Isaac vs A.L. Ammen Trans Co, GR L-9671, Aug. 23, 1957

PNR vs CA, GR L-55347, Oct. 4, 1985
Compania Maritima vs CA, 1988
PNR vs Vizcara, GR 190022, Feb. 15, 2012
Cangco vs Manila Railroad Company, GR L-12191, Oct. 14, 1918
Del Prado vs Meralco, GR L-29462, March 7, 1929

5) doctrine of avoidable consequences (Art. 1761, 2203, CC)

Lara vs Valencia, GR L-9907, June 30, 1958

6) causation
7) assumption of risk

Japan Airlines vs CA, 294 SCRA 19, Aug. 7, 1998

Calalas vs CA, 332 SCRA 356, May 31, 2000
Art. 1757, NCC

9) doctrine of last clear chance

Philippine Rabbit Bus Lines vs IAC, GR 66102-04, Aug. 30, 1990

Bustamante vs CA, 193 SCRA 603, Feb. 6, 1991
Tiu vs. Arriesgado, 437 SCRA 426, Sept. 1, 2004
Southern Lines Inc. vs. CA, 4 SCRA 258

Diligence in Selection, Supervision of Employees as a Defense

Art. 1759, NCC

Art. 2176, 2180, NCC (quasi-delict)
RA 10586, Anti-Drunk and Drugged Driving Act of 2013, Sec. 13

Duty to Inspect

Nocum vs. Laguna Tayabas Bus Company, GR L-23733, Oct. 31, 1969

6. Duration of Liability

6.1 As to Goods (Art. 1736-1738, 1746, NCC)

Saludo vs CA, GR 95536, March 23, 1992

Eastern Shipping Lines vs BPI/MS Insurance Corp., GR 193986, Jan. 15, 2014 (temporary
unloading)
Samar Mining vs Nordeutscher Lloyd, GR L-28673, Oct. 23, 1984 (actual/constructive
delivery)

6.2 As to Passengers

La Mallorca vs CA and Beltran, GR L-20761, July 27, 1966

Aboitiz Shipping vs CA, GR 84458, Nov. 6, 1989
Jesus Vda de Nueca v. The Manila Railroad Co., CA no. 31731, Jan. 30, 1968
Dangwa Transportation v CA, 202 SCRA 575,580 (1991)

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 LRTA v. Marjorie Natividad, GR 145804, Feb. 6, 2003

7. Stipulations reducing diligence, limiting liability

7.1 Reduction of duty of extraordinary diligence

In carriage of passengers (Art. 1757, 1760, NCC)

In carriage of goods (Art. 1744, 1752)

7.2 Valid Stipulations limiting liability of common carriers

In carriage of passengers (Art. 1757, 1758)

In carriage of goods (Art. 1749, 1750-1752, 1746-1748)

Edgard Cokaliong Shipping v. UCPB Gen, June 25, 2003

Federal Express vs Antonino, June 17, 2018 (filing of formal complaint as condition
precedent; see Art. 1186, New Civil Code)
Oriental Assurance vs Ong, GR 189524, Oct. 11, 2017
Servando vs Phil. Steam, GR L-36481, Oct. 23, 1982
Ong Yiu vs CA, GR L-40597, June 29, 1979 (contract of adhesion)
HE Heacock Co. vs Macondray, GR L-16598, Oct. 3, 1921

7.3 Invalid stipulations with common carriers (Art. 1745, NCC)

Ysmael vs Barretto, GR L-28028, Nov. 25, 1927

Gatchalian vs Delim, GR L-56487, Oct. 21, 1

7.4 When limiting stipulations cannot be invoked (Art. 1746, 1747, 1751)

7.5 Carriage of Goods by Sea Act (COGSA)

When COGSA applies

Sec. 4.5, COGSA (limit of liability)
Eastern Shipping v. IAC, 150 SCRA 464, 1987
Belgian Overseas Chartering v. Phil. First Ins. Co., June 5, 2002

8. Registered Owner Rule and Kabit System

8.1 Registration Rules

RA 4136 or the Land Transportation and Traffic Code

Erezo vs. Jepte

8.2 Registered Owner Rule

Erezo vs. Jepte, GR L-9605, Sept. 30, 1957

Equitable Leasing vs Lucita Suyon, GR 143360, Sept. 5, 2002
Gelisan vs Alday, GR L-30212, Sept. 30, 1987
Benedicto vs IAC, GR 70876, July 19, 1990

Quasi-delict

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 Art. 2176, 2177, New Civil Code
BA Finance Corp. vs. CA, 215 SCRA 715, 1992
PCI Leasing vs. UCPB General, GR 162267, July 4, 2008
RA 5980 as amended by RA 8556, The Financing Company Act (registered
owner rule application to financial lease)

Stolen Vehicle

Duavit vs. CA, 173 SCRA 490, 496, 1989

Villanueva vs. Domingo, GR 144274, Sept. 20, 2004, 438 SCRA 485
Perez vs. Gutierrez, GR L-30115, Sept. 28, 1973

8.3 Kabit System

Aberlardo Lim vs. CA, GR 125817, Jan. 16, 2002

Baliwag Transit vs CA, 147 SCRA 82, 1987
Santos vs Sibug, GR L-26815, May 26, 1981
Art. 1409, NCC
LTFRB MC 2011-004

Pari Delicto Rule

Lita Enterprises vs. IAC, 129 SCRA 79, April 27, 1984

Aircrafts

Sec. 44 of RA 9497 or the Civil Aviation Authority Act

Boundary System

Hernandez vs. Dolor, GR 160286, July 30, 2004

Magboo vs Bernardo, GR L-16790, April 30, 1963
Provincial Bus Operators vs. DOLE and LTFRB, GR 202275, July 17, 2018

9. Concurrent Causes of Action

9.1 Driver and Third Persons

Basis of Cause of Action by Passenger/Shipper vs. Common Carrier, Passenger/Shipper vs.

Driver/Captain

Art. 1735, 1756, NCC

Concurrence of third persons

Sanico vs. Colipano, GR 209969, Sept. 27, 2017

Philtranco vs Paras, GR 161909, April 25, 2012
Francisco Viluan vs CA, GR 21477-81, April 29, 1966

Solidary Liability

Fabre vs CA, GR 111127, July 26, 1996

MMTC v CA, 223 SCRA 521, 1993

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9.2. Quasi Delict (Art. 2176-77, Art. 2180, Art. 2184, NCC)

9.3. Culpa Contractual vs. Culpa Aquiliana

9.4. Carrier’s Right of Recourse

Sarkies Tours vs IAC, GR L-63723, Sept. 2, 1983 (right of reimbursement)

Philtranco Service vs CA and Heirs of Acuesta, GR 120553, June 17, 1997

9.5. Extent of Liability (Art. 1764-1766)

10. Passenger’s Baggages (Art. 1754, Art. 1998, NCC)

Air France vs Gillego, GR 165266, Dec. 15, 2010

Sarkies Tour Phils. vs. CA, GR 108897, Oct. 2, 1997

11. Notice of Claim

Art. 1170, NCC

MCC Industrial Sales vs. Ssyangyong Corp., 536 SCRA 408, 2007 (reqts in
action for damages due to breach of contract)

Purpose of Notice

Oriental Assurance vs Ong, 2017

Federal Express vs Antonino, GR 199455, June 27, 2018
Philippine American General Insurance vs Sweet Lines, GR 87434, Aug. 5, 1992

11.1 Claim in Overland Transportation and Coastwise Shipping

Art. 366, Code of Commerce

UCPB General Insurance vs Aboitiz Shipping, GR 168433, Feb. 10, 2009
Philippine Charter Insurance vs Chemoil, GR 136888, June 29, 2005

Waiver of Notice Requirement

Southern Lines vs CA, GR L-16629, Jan. 31, 1962

11.2 Notice of Claim in Intl Carriage of Goods by Sea

Sec. 3, par 6, COGSA

Period not Mandatory

Philam Insurance vs Heung-A Shipping Corp., July 23, 2014

11.3 Notice of Claim under Warsaw Convention

11.4 Prescription in Overland Transportation and Coastwise Shipping

Art. 1144-45, NCC

11.5 Prescription in Intl Carriage of Goods

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 Pioneer Insurance vs APL Co., 2017
Cua vs Wallem Phil. Shipping, 2012
Maritime Company vs CA, 164 SCRA 59
Dole Philippines vs. Maritime Co., 148 SCRA 118, 1987
Fil Merchants vs Alejandro, 145 SCRA 42, 1986
Mayer Steel Pipe vs CA, 274 SCRA 342, 1997

11.6 Prescription in Air Transportation

12. Bill of Lading and Other Formalities

12.1 What is a bill of lading

Ace Navigation vs FGU Insurance, June 15, 2012

Designer Baskets vs Air Sea Transport, GR 184513, March 9, 2016
Compania Maritima v. Ins Co of North America, 12 SCRA 213
Keng Hua vs CA, 286 SCRA 257, 1998
Republic vs Lorenzo Shipping, 450 SCRA 551, 2005; Art 353 CC

RA 78792, Electronic Commerce Act, Sec. 25-26

12.2 Kinds of Bills of Lading

(1)negotiable or non-negotiable
(2)clean bill of lading or foul bill of lading
(3)on board bill or received for shipment bill
(4)spent bill of lading
(5)through bill of lading
(6)custody bill of lading
(7)port bill of lading

Magellan Manufacturing v CA, 201 SCRA 102, 1991

12.3 Parties in a Bill of Lading

12.4 Nature of Bills of Lading

Aleson Shipping Lines vs. CGU Intl Ins, GR 217311, July 15, 2020

12.5 Contract of adhesion

12.6 Shipment Terms

FOB, FAS, CIF

Art. 1523, 1503, NCC

12.7 Prohibited and Limiting Stipulations

a) Kinds of limiting stipulations in bill of lading

b) Other invalid stipulations in carriage of goods (Art. 1745, NCC)
c) Other provisions on limiting stipulations (Art. 1746-1750, NCC)
d) Purpose of limiting stipulations
e) Presumption of negligence (Art. 1752)
f) Stipulation reducing diligence (Art. 1744, NCC)

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 g) Reduction not allowed for passenger (Art. 1757, 1733, 1755)
h) Stipulations Fixing Limit of Recovery (Art. 1750-51, NCC)
i) Riots and Strikes (Art. 1748, NCC)
j) COGSA
k) When Limiting Stipulation Cannot be Invoked (Art. 1746-1747)

12.8 Bill of Lading as Document of Title

a) Negotiability (Art. 1507, NCC)

b) Effect of Stamp or Notation of Non-Negotiability (Art. 1510)
c) How Negotiated (Art. 708, Code of Commerce; Art. 1508, 1511, 1509, 1511, NCC)

12.9. Delivery without surrender of bill of lading

Designer Baskets vs Air Sea Transport

12.10. Refusal of consignee to take delivery (Art. 365, 371, 687, Code of Commerce

Maersk Line vs CA, GR 94761, May 17. 1993

Keng Hua Paper Products vs CA, GR 116863, Feb. 12, 1998

12.11 Shipper’s load and count, demurrage

13. Actions and Damages in Case of Breach

13.1 Kinds of damages (Art. 2197, NCC)

13.2 When recoverable (Art. 2201, 2205-2206, 2216, 2219-2220, NCC)

In contracts (Art. 2201)

Damages in case of death (Art. 2206, 1764, NCC)

Fores vs Miranda, GR L-12163, March 4, 1959

Cariaga vs LTB Co., GR L-11037, Dec. 29, 1960 (loss of earning capacity)
Villa-Rey Transit vs CA, GR L-25499, Feb. 18, 1970 (net earning capacity)

Amount of Liability in Carriage by Sea – Art. 372, Code of Commerce

Sec. 4, par 5, COGSA

Moral Damages

Darines vs Quinones, 2017 (when recoverable)

Expert Travel & Tours vs CA, GR 130030, June 25, 1999 (requisites)
Air France vs Gillego, GR 165266, Dec. 15, 2010
Lopez vs Pan American World Airways, 16 SCRA 431, 1966
Ortigas vs Lufthansa, 64 SCRA 610, June 30, 1975
Pan American World Airways vs IAC, GR 74442, August 31, 1987
Trans World Airlines vs CA, GR 78656, Aug. 30, 1988
Armovit vs CA, GR 88561, April 20, 1990

13.3 Alternative Compensation Scheme

Sec. 14, 15, Domestic Shipping Development Act of 2004

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 Sec. 374-389 Insurance Code (compulsory motor vehicle liability insurance)

II. MARITIME LAW

1.General Concepts

1.1 Definition

1.3 Vessel

Sec. 3f, RA 9295 and Sec 3b, PD 474

Sec. 10, RA 9295, Sec. 14, EO 125 and 125A
Sec 3d PD 474
Sec. 810, Tariff and Customs Code

2. Limited Liability Rules

2.1 Doctrine of Limited Liability

Monarch Ins. Co. v. CA, GR 92735, June 8, 2000

Art. 587, 590, 837 of the Code of Commerce
Aboitiz Shipping v. Gen. Accident Fire, 217 SCRA 359, 1993

When applicable

Art. 587, 837, 643, Code of Commerce

When not applicable

Abandonment

Art. 587, CC

Who can Invoke

Dela Torre v CA, 653 SCRA 714, 201

How are claims satisfied

Aboitiz Shipping v General Accident

3. Protest

What is maritime protest

When protest required under CC

4. Collision vs Allision

4.1 Doctrine of Inscrutable Fault

Art. 826-828, CC

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4.2 Rules on collision of vessels

Arts.826-828, 830-832, CC

One vessel at fault (Art. 826, CC)

Both vessels at fault (Art. 827, CC)
Doctrine of Inscrutable Fault (Art. 828, CC)
Cause is fortuitous event (Art. 832, CC)
Third person at fault (Art. 831, CC)
Contributory negligence and last clear chance (Art. 827, CC)

Sinking on the way to port (Art. 833, CC)

Protest (Art. 835, 836, CC)
Limited Liability Rule (Art. 837, CC)

4.3 Doctrine of Error in Extremis

Zones in collision
Urritia vs Baco River Plantation, March 25, 1913

5. Arrival Under Stress

Protest (Art. 612, CC)

When arrival under stress improper (Art. 820, CC)
Expenses (Art. 821, CC)
Shipwrecks (Art. 840, 841, 643, 661, 734, 735, CC)

6. Persons Involved in Marine Commerce

6.1 Ship Agents

NDC vs. CA, 164 SCRA 593, 1988

Civil Liabilities of shipowner/ship agent
Lorenzo Shipping Corp. vs National Power Corp., GR 181683, Oct. 7, 2015

6.2 Captains and Masters of the Vessel

Triple roles of captain

Aleson Shipping vs CGU International, July 15, 2020
Inter-Orient Maritime vs. NLRC, 235 SCRA 268, 1994
Wildvalley Shipping v CA, GR 119602, Oct. 6, 2000
Grounds for discharge of captain
Cases when ship owner/agent liable for damages caused by captain

6.3 Officers and Crew of the Vessel

6.4 Supercargoes

6.5 Desertion

Singa Ship vs. NLRC, 276 SCRA 201, 199

7. Averages (Art. 306, Code of Commerce)

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 Kinds of Averages

7.1 General Average

Phil Home Assurance vs. CA, 257 SCRA 468, 1996

Requisites
What general averages include (Art. 811, CC)
Formalities (Art. 813-814, 816, 859, CC)

7.2 Particular Average (Sec. 809, CC)

8. Charter Party

Types of Charter Party

Planters Products vs CA, 226 SCRA 476
Effects of Charter Party
Caltex Phils vs Sulpicio Lines
Clauses that may appear in charter party (Jason Clause, Clause Paramount)

9. Loans on Bottomry and Respondentia

Distinguished from ordinary loan

10. Consequences of loss of effects on the loan

11. COGSA

12. The Ship Mortgage Decree of 1978 (PD 1521)

12.1 Who may constitute (Sec. 2, SMD)

12.2 Formal requirements (Sec. 3,4)

12.3 Arrest and foreclosure (Sec. 10, 11, 18)

12.4 Concurrence and Preference of Credits (Sec. 17)

12.5 Maritime Lien (Sec. 21)

13. Salvage Law (Act 2616)

13.1 Definition (Sec. 1)

Kinds

13.2 Requirements for Compensation

Persons not entitled to compensation

13.3 Amount of Reward or Compensation

13.4 Who is Entitled to Reward (Sec. 12, 13)

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13.5 Limit of Salvage Fee

III. CIVIL AVIATION

1.Warsaw Convention

1.1When applicable

International transportation by air (Sec. 2, Art. 1, Warsaw Convention)

Mapa vs. CA, GR 122308, July 8, 1997

1.2 Claims covered (Art. 17-19, WC)

1.3 Limit of liability of carrier

British Airways vs CA, GR 121824, January 29, 1998

Lufthansa vs IAC, GR 71238, March 19, 1992
Northwest Airlines vs. Cuenca, GR L-22425, Aug. 31, 1965
Alitalia vs IAC, GR 71929, Dec. 4, 1990
United Airlines vs Uy, GR 127768, Nov. 19, 1999
Sabena Belgian World Airlines vs CA, GR 104685, March 14, 1996
PAL vs Savillo, GR 149547, July 4, 2008 (liability for tort)

1.4 When limit of liability cannot be availed of by carrier

Absence of ticket (Art. 3.2, WC)

Absence of baggage check (PAL vs CA, GR L-44936, Sept. 25, 1992)
Waiver (British Airways vs CA, GR 121824, Jan. 29, 1998)

1.5 Venue/Jurisdiction

Art. 28(1), WC
Lhullier vs. British Airways, GR 171092, March 15, 2010

1.6 Notice of claim and prescriptive period

Art. 26, 29, WC

United Airlines vs. Uy, Nov. 19, 1999; PAL vs. Savillo

1.7 Overbooking and denied boarding

CAB ER no. 7 and 9

1.8 Successive Carriers

Art. 1(3), WC
Lufthansa vs CA, 238 SCRA 290, 1994
KLM Dutch Airlines vs CA

2. Civil Aviation

RA 9497, RA 776 (economic regulation)

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2.1 Definitions

2.2 Inspection of Aircraft (RA 6235)

2.3 Nationality and ownership of aircraft

Sec. 3, 43, 44, 49, 50, 53, CAAA

2.4 Persons Involved in Air Transportation

2.5 Charter of Aircraft

Classifications of aircraft charter

2.6 Sovereignty and Air Freedoms

Chicago Convention
Freedoms of the Air
International Air Transport Agreement (IATA) signed in Chicago on Dec. 7, 1944

Kuwait Airways vs PAL, GR 156087, May 8, 2009

Cabotage (types)

2.7 Obligations of Carrier in Air Transportation

Extraordinary Diligence
Abeto vs PAL, July 30, 1982, 115 SCRA 489
PAL vs CA, GR L-46558, July 31, 1981, 106 SCRA 391
Tariff System
Care of Baggage
Physical Injuries to Passengers
Downgrading, upgrading of passengers
Delay and diversion of flights (Japan Airlines vs CA, GR 118664, August 7, 1998)
Rude treatment (Air France vs De Camilis, GR 1889651, Oct. 13, 2009)
Overbooking (Northwest Airlines vs Sps Heshan, GR 179117, Feb. 3, 2010)
Savellano vs Northwest Airlines, GR 60673, May 19, 1992
Denied boarding passengers
Air Passenger Bill of Rights under Economic Regulation no. 9, 2012
Inspection of aircraft and cargo

IV. LAND TRANSPORTATION

1. Governing Laws

RA 4136, Land Transportation and Traffic Code

RA 8750, Seat Belt Law
RA 10586, Anti-Drunk and Drugged Driving Act of 2014
RA 8749, Clean Air Act (Mandatory Emission Standards)

2. Powers and Functions of the LTO (RA 4136, Art 3 par 4d)
3. The LTFRB (O. no. 202, dated June 19, 1987
4. Power to regulate, grant franchises to tricycles (RA 7160)
5. Power of MMD to enforce traffic laws (RA 7924, 5f)

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6. Rights and Obligations of Road Users, Vehicle Owners
7. Compulsory Registration of Motor Vehicles (RA 4136)
8. Compulsory Third Party Liability Insurance; Limit of Liability (RA 10607, Sec. 387-
389)

V. PUBLIC SERVICE ACT

1. Definition of public service (Sec. 13a, 15, 18, PSA)

2. Powers of PSC; Government agencies that replaced Public Service Commission

RCPI vs NTC, GR 93237, Nov. 6, 1992

CPC, CPCN, PA, Franchise Defined, Distinguished

3. Is CPC property in the hands of the holder thereof

Bagong Repormang Samahan ng mga Tsuper vs City of Mandaluyong, June 15, 2020

4. Conditions in grant of CPC/CPCN

KMU vs Garcia
GMA Network vs NTC, 2017
Associated Communications vs NTC, 2003
Eastern Broadcasting vs Dans, GR L-59329, July 19, 1985
LTFRB vs GV Florida, GR 213088, June 28, 2017
ABS-CBN vs NTC, GR 252119, Aug. 25, 2020

5. Franchise (Definition)

Metropolitan Cebu Water District vs Adala, GR 168194, July 4, 2007

RCPI vs NTC and Kayumanggi Radio, GR L-68729, May 29, 1987

6. Is a legislative franchise necessary before a public utility can be allowed to secure a CPC

Associated Communications vs. NTC

Albano vs. Reyes, 175 SCRA 264, 1989
PAL vs. CAB, 270 SCRA 538, 1997
ABS-CBN vs NTC, GR 252119, Aug. 25, 2020

7. Delegation to LGUs (RA 7160, Sec. 447.3)

8. Prior Operator Rule

Mandbusco vs Francisco, GR L-23688, April 30, 1970

Halili vs Ice and Cold Storage, GR L-226, Jan. 25, 1947
Manila Yellow Taxicab vs PSC, Oct. 31, 1951
Yangco vs Esteban, GR L-38586, Aug. 18, 1933

Exceptions

Mandbusco vs Francisco
Guico vs Estate of Buan, GR L-9759, Aug. 30, 1979

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Raymundo Transportation vs Cerdo, May 18, 1956
Intestate Estate of Tiongson vs. PSC, 36 SCRA 241
Ereno vs PSC, 67 SCRA 192
Manila Yellow Taxicab vs Castelo
Villa Rey Transit vs Pangasinan Trans. Co., 5 SCRA 234
Raymundo Transportation vs Cervo, GR L-3899, May 21, 1952
Camarines Sur vs. Buenaflor, GR L-15490, April 19, 1961

9. Protection of Investment Rule

Ereno vs PSC

10. Prior Applicant Rule

11. Power of PSC to fix, regulate rates

Factors to be considered in fixing rates

Republic vs Meralco, GR 141314, Nov. 15, 2002

KMU vs Garcia, GR 115381, Dec. 23, 1994

12. Provisional rates

Ceferino Padua vs Ranada, GR 141949, Oct. 14, 2002

Nasecore vs. ERC, GR 163935, Feb. 2, 2006

Notice and Hearing, when required; when not required

13. Public utility defined

Metropolitan Cebu Water District vs. Adala, GR 168914, July 4, 2007

KMU vs Garcia
Republic vs Meralco
Ideals vs PSALM, GR 192088, Oct. 9, 2012

14. Constitutional Limitations on Public Utilities

14.1 Ownership requirement (Art. XII, Sec. 11, 1987 Constitution)

Tatad vs. Garcia, 243 SCRA 463, 1995

Heirs of Gamboa vs Teves, GR 176579, Oct. 9, 2012 (Voting Control, Beneficial Ownership
Test)
Roy vs. Herbosa, GR 207246, Aptil 18, 2017
Gios-Samar vs. DOTC, March 12, 2019

14.2 Non-exclusivity (Sec. 11, Art. 12, 1987 Constitution)

Tawang Multi-Purpose Cooperative vs. La Trinidad Water District, GR 166471, March 22,
2011

14.3 Takeover of Public Utilities (Sec. 17, 18, Art. 12, Constitution)

David vs Macapagal-Arroyo, GR 171396, May 3, 2006

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15. Approval of Sale, Lease, Encumbrance (Sec. 20, CA 146)

16. Registration of Mortgage of Vessels, Aircraft, Motor Vehicles

17. Monopolies, Combinations in Restraint of Trade (Sec. 19, Art. 12, Constitution)

National Federation of Hog Farmers vs. BOI, GR 205835, June 23, 2020
Philippine Competition Act

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