TRANSPORTATION AND PUBLIC UTILITIES

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APRIL LYN

N L. URSAL

Page

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1

LAW ON TRANSPORTATION AND PUBLIC UTILITIES LAW ON TRANSPORTATION AND PUBLIC UTILITIES

Contract of Transportation

Contract of Transportation –– person obligates himself to person obligates himself to transport persons or property from one place to another for transport persons or property from one place to another for a consideration. a consideration. 2 KINDS: 2 KINDS: 1. CARRIAGE OF PASSENGERS 1. CARRIAGE OF PASSENGERS Parties:

Parties: common carrier & passenger (carried gratuitously common carrier & passenger (carried gratuitously or not)

or not) Passenger

Passenger –– one who travels in a public conveyance by virtue one who travels in a public conveyance by virtue of contract, express or implied, with the carrier as to the of contract, express or implied, with the carrier as to the payment of fare or that which is accepted as an equivalent payment of fare or that which is accepted as an equivalent thereof

thereof

Perfection: Perfection:

2 types of contracts of carriage of PASSENGERS: 2 types of contracts of carriage of PASSENGERS: > contract to carry

> contract to carry (agreement to carry the passenger at (agreement to carry the passenger at some future date)

some future date) –– consensual contract and perfected by consensual contract and perfected by mere consent

mere consent * AIRCRAFT

* AIRCRAFT –– perfected even without issuance of ticket as perfected even without issuance of ticket as long as there was already meeting of minds with respect to long as there was already meeting of minds with respect to the subject matter and consideration

the subject matter and consideration

> Contract of Carriage > Contract of Carriage

–

– real contract; not until the facilities of the carrier are real contract; not until the facilities of the carrier are actually used can the carrier be said to have assumed the actually used can the carrier be said to have assumed the obligation of the carrier; perfected by actual use.

obligation of the carrier; perfected by actual use. * AIRCRAFT

* AIRCRAFT –– perfected if it was established that the perfected if it was established that the passenger had checked in at the departure counter, passed passenger had checked in at the departure counter, passed through customs and immigration, boarded the shuttle bus through customs and immigration, boarded the shuttle bus and proceeded to the ramp of the aircraft and baggage and proceeded to the ramp of the aircraft and baggage already loaded to the aircraft.

already loaded to the aircraft.

* Public Utility Bus or Jeepneys or Street Cars

* Public Utility Bus or Jeepneys or Street Cars –– once it stops once it stops it is in effect making a continuous offer to riders; perfected it is in effect making a continuous offer to riders; perfected when passenger is already attempting to board the vehicle when passenger is already attempting to board the vehicle * TRAINS

* TRAINS –– perfected when a person: perfected when a person:

a. purchased a ticket/ possess sufficient fare with a. purchased a ticket/ possess sufficient fare with which to pay for his passage

which to pay for his passage

b. presented himself at the proper place and in a b. presented himself at the proper place and in a proper manner to be transported

proper manner to be transported

c. has a bona fide intention to use facilities of the c. has a bona fide intention to use facilities of the carrier

carrier

2. CARRIAGE OF GOODS 2. CARRIAGE OF GOODS Parties:

Parties: shipper & carrier shipper & carrier Shipper

Shipper –– the person who delivers the goods to the carrier the person who delivers the goods to the carrier for transportation; pays the consideration or on whose for transportation; pays the consideration or on whose behalf payment is made

behalf payment is made

Consignee

Consignee –– person to whom the goods are to be delivered. person to whom the goods are to be delivered. May be the shipper himself or a third person who is not May be the shipper himself or a third person who is not actually a party to the contract

actually a party to the contract

Perfection: Perfection:

> contract to carry goods

> contract to carry goods –– consensual consensual

> contract of carriage - act of delivery of goods ( goods are > contract of carriage - act of delivery of goods ( goods are unconditionally placed in the possession and control of the unconditionally placed in the possession and control of the carrier and upon their receipt by the carrier for carrier and upon their receipt by the carrier for transportation) transportation) CARRIER: CARRIER: Common carriers (CC) (1732) Common carriers (CC) (1732) –

– persons, corporations, firms or associations engagedpersons, corporations, firms or associations engaged

in the business of carrying or transporting in the business of carrying or transporting passengers or goods or both, by land, water, or air, passengers or goods or both, by land, water, or air, for compensation, offering their services to the for compensation, offering their services to the public. (NOT the means of transportation)

public. (NOT the means of transportation)

–

– one that holds itself out as ready to engage in theone that holds itself out as ready to engage in the

transportation of goods for hire as a public transportation of goods for hire as a public employment and not as a casual occupation.

employment and not as a casual occupation.

Tests for determining WON a party is a common carrier Tests for determining WON a party is a common carrier of goods:

of goods:

1.

1. He must be engaged in the business of carryingHe must be engaged in the business of carrying goods for others as a public employment, and must goods for others as a public employment, and must hold himself out as ready to engage in the hold himself out as ready to engage in the transportation of goods for persons generally as a transportation of goods for persons generally as a business and not as a casual occupation.

business and not as a casual occupation. 2.

2. He must undertake to carry good of the kind toHe must undertake to carry good of the kind to which his business is confined.

which his business is confined. 3.

3. He must undertake to carry by the method by whichHe must undertake to carry by the method by which his business is conducted and over his established his business is conducted and over his established roads.

roads. 4.

4. Transportation must be for hire.Transportation must be for hire.

Characteristics of Common carriers (CC): Characteristics of Common carriers (CC):



 no distinction between one whose principalno distinction between one whose principal business is the transportation of persons/goods and business is the transportation of persons/goods and one who does such as an ancillary business one who does such as an ancillary business (sideline)

(sideline) 

 no distinction between regular or scheduled basisno distinction between regular or scheduled basis and one offering such service on an occasional, and one offering such service on an occasional, episodic or unscheduled business

episodic or unscheduled business 

 still a CC even if services offered to a limitedstill a CC even if services offered to a limited clientele (between the general public and a narrow clientele (between the general public and a narrow segment of the general population)

segment of the general population) 

 Still considered a CC even if he did not secure aStill considered a CC even if he did not secure a Certificate of Public Convenience

Certificate of Public Convenience 

 No distinction as to the means of transporting, asNo distinction as to the means of transporting, as long as it is by land, water or air

long as it is by land, water or air 

 The Civil Code does not provide that theThe Civil Code does not provide that the transportation should be by motor vehicle

transportation should be by motor vehicle 

 Still a CC even if he has no fixed and publicly knowStill a CC even if he has no fixed and publicly know route, maintains no terminals, and issues no tickets route, maintains no terminals, and issues no tickets 

 pipeline operators are CCspipeline operators are CCs –– not necessarily motor not necessarily motor vehicles (

vehicles (Case: First Philippine Industrial Corp. vs.Case: First Philippine Industrial Corp. vs. CA)

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Case: Jose Mendoza vs. Philippine Airlines Inc Case: Jose Mendoza vs. Philippine Airlines Inc

-- _{The test of whether one is a common carrier by air is}_{The test of whether one is a common carrier by air is}

whether he holds out that he will carry for hire, so whether he holds out that he will carry for hire, so long as he has room, goods of everyone bringing long as he has room, goods of everyone bringing goods to him for carriage, not whether he is carrying goods to him for carriage, not whether he is carrying as a public employment or whether he carries to a as a public employment or whether he carries to a fixed place

fixed place

CHARTER PARTY: CHARTER PARTY:

-- _{Contract by which an entire ship or some principal}_{Contract by which an entire ship or some principal}

part thereof is let by the owner to another person part thereof is let by the owner to another person for a specified time or use.

for a specified time or use. Q: What is the effect of charter party? Q: What is the effect of charter party?

A: It may transform a common carrier into a private carrier. A: It may transform a common carrier into a private carrier. However, it must be a bareboat or demise charter where the However, it must be a bareboat or demise charter where the charterer mans the vessel with his own people and becomes, charterer mans the vessel with his own people and becomes, in effect, the owner for the voyage or service stipulated in effect, the owner for the voyage or service stipulated

2 types: 2 types:

1.

1. Contract of Affreightment Contract of Affreightment

-- _{involves the use of shipping space on}_{involves the use of shipping space on}

vessels leased by the owner in part or as a vessels leased by the owner in part or as a whole, to carry goods for another

whole, to carry goods for another

-- _{CC = observe extraordinary diligence; in}_{CC = observe extraordinary diligence; in}

case of loss, deterioration or destruction of case of loss, deterioration or destruction of goods of goods, CCs are presumed to be at goods of goods, CCs are presumed to be at fault or have acted negligently

fault or have acted negligently

-- _{2 types}_{2 types}

i.i. Time charter: vessel is leased to theTime charter: vessel is leased to the charterer for a fixed period of time charterer for a fixed period of time ii.

ii. Voyage charter: ship is leased for aVoyage charter: ship is leased for a single voyage

single voyage

2.

2. Charter by demise/ Bareboat CharterCharter by demise/ Bareboat Charter

-- _{whole vessel is let to the charterer with a}_{whole vessel is let to the charterer with a}

transfer to him of its entire command and transfer to him of its entire command and possession and consequent control over its possession and consequent control over its navigation including the master and the navigation including the master and the crew who are his servants.

crew who are his servants.

-- _{charter includes both vessel and crew}_{charter includes both vessel and crew—}_—CC_CC

becomes private carrier (PC) insofar as that becomes private carrier (PC) insofar as that particular voyage is concerned

particular voyage is concerned

-- _{if it is already a PC- ordinary diligence in the}_{if it is already a PC- ordinary diligence in the}

carriage of goods will suffice carriage of goods will suffice

-- _{PC = undertaking is a single transaction, not}_{PC = undertaking is a single transaction, not}

a part of the general business or occupation, a part of the general business or occupation, although involving the carriage of goods for although involving the carriage of goods for a fee; NO presumption of negligence applies a fee; NO presumption of negligence applies –

– whosoever alleges damage to or whosoever alleges damage to or

Extraordinary diligence in Extraordinary diligence in the vigilance over the goods the vigilance over the goods they carry

they carry

Ordinary diligence in the Ordinary diligence in the carriage of goods will suffice carriage of goods will suffice In case of loss, destruction,

In case of loss, destruction, or deterioration of goods, or deterioration of goods, they are presumed to have they are presumed to have been at fault or to have acted been at fault or to have acted negligently; burden of negligently; burden of proving otherwise rests on proving otherwise rests on them

them

No such presumption applies No such presumption applies to private carriers, for to private carriers, for whosoever alleges damage whosoever alleges damage to or deterioration n of the to or deterioration n of the goods carried has the onus of goods carried has the onus of proving that the cause was proving that the cause was the negligence of the carrier the negligence of the carrier Cannot stipulate that it is

Cannot stipulate that it is exempt from liability for the exempt from liability for the negligence of its agents or negligence of its agents or employees

employees

May validly enter into such May validly enter into such stipulation

stipulation

Factors to be considered whether a carrier is common/private: Factors to be considered whether a carrier is common/private:



 Law applicableLaw applicable

o

o CommonCommon Civil Code Civil Code o

o PrivatePrivate contract contract



 Diligence requiredDiligence required

o

o CommonCommon extraordinary diligence extraordinary diligence o

o PrivatePrivate diligence of a good father of a diligence of a good father of a family

family 

 Burden of proof in relation to negligenceBurden of proof in relation to negligence

o

o CommonCommon –– the carrier the carrier o

o PrivatePrivate –– on the party having a claim against on the party having a claim against the carrier

the carrier

Case: Planters Products, Inc. vs. CA Case: Planters Products, Inc. vs. CA

-- _{It is therefore imperative that a public carrier shall}_{It is therefore imperative that a public carrier shall}

remain as such, notwithstanding the charter of the remain as such, notwithstanding the charter of the whole or portion of a vessel by one or more persons, whole or portion of a vessel by one or more persons, provided the charter is limited to the ship only, as in provided the charter is limited to the ship only, as in the case of a time-charter or voyage-charter. It is the case of a time-charter or voyage-charter. It is only when the charter includes both the vessel and only when the charter includes both the vessel and its crew that a common carrier becomes private its crew that a common carrier becomes private

True Test of Common Carrier

True Test of Common Carrier Is the carriage of passengersIs the carriage of passengers or goods, provided it has space, for all who opt to avail or goods, provided it has space, for all who opt to avail themselves of its transportation service for a fee

themselves of its transportation service for a fee

Generally,

Generally, private carriage is undertaken by spcialprivate carriage is undertaken by spcial agreement and the carrier does not hold hiself out to carry agreement and the carrier does not hold hiself out to carry goods for the general public

goods for the general public

Case: Estela Crisostomo vs. CA and Caravan Travel and Tours Case: Estela Crisostomo vs. CA and Caravan Travel and Tours International

International

-- _{By definition, a contract of carriage is one whereby}_{By definition, a contract of carriage is one whereby}

a certain person or association of persons obligate a certain person or association of persons obligate themselves to transport person, thing or new from themselves to transport person, thing or new from one place to another for a fixed price

one place to another for a fixed price

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-- _{It is in this sense that the contract between the}_{It is in this sense that the contract between the}

parties in this case was an ordinary one for services parties in this case was an ordinary one for services and not one of carriage; it is thus not bound under and not one of carriage; it is thus not bound under the law to observe extraordinary diligence in the the law to observe extraordinary diligence in the performance of its obligation.

performance of its obligation.

COMMON CARRIERS vs. TOWAGE, ARRASTRE AND COMMON CARRIERS vs. TOWAGE, ARRASTRE AND STEVEDORING

STEVEDORING Towage

Towage

-- _{A vessel is hired to bring another vessel to another}_{A vessel is hired to bring another vessel to another}

place place

-- _{e.g. a tugboat may be hired by CC to bring the vessel}_{e.g. a tugboat may be hired by CC to bring the vessel}

to a port (operator of tugboat not CC) to a port (operator of tugboat not CC)

-- _{in maritime law: towing for the mere purpose of}_{in maritime law: towing for the mere purpose of}

expediting her voyage without reference to any expediting her voyage without reference to any circumstances of danger

circumstances of danger

Arrastre Arrastre

-- _Arrastre_{Arrastre operator’s functions has nothing to do with}_{operator’s functions has nothing to do with}

the trade and business of navigation nor to the use the trade and business of navigation nor to the use or operation of vessels

or operation of vessels

-- _{Services are not maritime}_{Services are not maritime} -- _{Functions of arrastre operator:}_{Functions of arrastre operator:}

o

o Receive, handle, care for, and deliver allReceive, handle, care for, and deliver all merchandise imported and exported, upon merchandise imported and exported, upon or passing over Government-owned or passing over Government-owned wharves and piers in the port

wharves and piers in the port o

o Record or check all merchandise whichRecord or check all merchandise which may be delivered to said port ant shipside may be delivered to said port ant shipside o

o Furnish light, and water services and otherFurnish light, and water services and other incidental service in order to undertake its incidental service in order to undertake its arrastre service

arrastre service

-- _{Such service is in face, no different from those of a}_{Such service is in face, no different from those of a}

depositary or warehouseman depositary or warehouseman

Stevedoring Stevedoring

-- _{involves the loading and unloading of coastwise}_{involves the loading and unloading of coastwise}

vessels calling at the port. vessels calling at the port.

>>> Common carriers are public utilities, impressed with >>> Common carriers are public utilities, impressed with public interest and concern subject to regulation by the state. public interest and concern subject to regulation by the state.

GOVERNING LAWS GOVERNING LAWS

-- _{read summary of rules on page 40 of book}_{read summary of rules on page 40 of book}

Article

Article 1766 1766 (Civil (Civil Code).Code). In all matters not regulatedIn all matters not regulated by this Code, the rights and obligations of common by this Code, the rights and obligations of common carriers shall be governed by the Code of Commerce and carriers shall be governed by the Code of Commerce and by special laws.

by special laws. NATURE OF BUSINESS NATURE OF BUSINESS

-- _{Common Carriers exercise a sort of public office}_{Common Carriers exercise a sort of public office} -- _{Consequently, common carriers are subject to}_{Consequently, common carriers are subject to}

-- _{The registered owner of a vehicle is liable for any}_{The registered owner of a vehicle is liable for any}

damage caused by the negligent operation of the damage caused by the negligent operation of the vehicle although the same was already sold or vehicle although the same was already sold or conveyed to another person at the time of the conveyed to another person at the time of the accident.

accident.

-- _{The registered owner is liable to the injured party}_{The registered owner is liable to the injured party}

subject to his right of recourse against the transferee subject to his right of recourse against the transferee or the buyer.

or the buyer.

-- _{Applicable in case of lease}_{Applicable in case of lease}

-- _{Registered owner not liable if vehicle was taken}_{Registered owner not liable if vehicle was taken}

from him without his knowledge and consent. from him without his knowledge and consent. Q: what is the purpose of such law?

Q: what is the purpose of such law?

A: The main aim of motor vehicle registration is to identify A: The main aim of motor vehicle registration is to identify the owner so that if any accident happens, or that any the owner so that if any accident happens, or that any damage or injury is caused by the vehicle on the public damage or injury is caused by the vehicle on the public highways, responsibility therefor can be fixed on a definite highways, responsibility therefor can be fixed on a definite individual

individual –– the registered owner. the registered owner.

KABIT SYSTEM KABIT SYSTEM

-- _{The “registered owner” rule is a}_{The “registered owner” rule is applicable to people}_{pplicable to people}

involved on a

involved on a “kabit system”“kabit system”

-- _{arrangement whereby a person who has been granted a}_{arrangement whereby a person who has been granted a}

certificate of public convenience allows other persons certificate of public convenience allows other persons who own motor vehicles to operate them under his who own motor vehicles to operate them under his license, sometimes for a fee or percentage of the license, sometimes for a fee or percentage of the earnings --- contrary to public policy (thus VOID and earnings --- contrary to public policy (thus VOID and INEXISTENT)

INEXISTENT)

-- _{parties to the “kabit system” cannot invoke the same as}_{parties to the “kabit system” cannot invoke the same as}

against each other either to enforce their illegal against each other either to enforce their illegal agreement or to invoke the same to escape liability agreement or to invoke the same to escape liability

---pari delicto rule pari delicto rule

-- _{having entered into an illegal contract, neither can seek}_{having entered into an illegal contract, neither can seek}

relief from the courts and each must bear the relief from the courts and each must bear the consequences of his acts

consequences of his acts

-- _{also applicable to aircrafts and vessels}_{also applicable to aircrafts and vessels –}_{– basic rule that}_{basic rule that}

no person can operate a common carrier without no person can operate a common carrier without securing a certificate of public convenience and securing a certificate of public convenience and necessity.

necessity.

Case: Dizon vs. Octavio Case: Dizon vs. Octavio

-- _{the primary factors considered in the granting of a}_{the primary factors considered in the granting of a}

certificate of public convenience for the business of certificate of public convenience for the business of public transportation is the financial capacity of the public transportation is the financial capacity of the holder of the license, so that liabilities arising from holder of the license, so that liabilities arising from accidents may be duly compensated

accidents may be duly compensated

-- _{Thus, for the safety of passengers and the public}_{Thus, for the safety of passengers and the public}

who may have been wronged and deceived through who may have been wronged and deceived through the baneful kabit system, the registered owner of the the baneful kabit system, the registered owner of the vehicle is not allowed to prove that another person vehicle is not allowed to prove that another person has become the owner so that he may be thereby has become the owner so that he may be thereby relived of responsibility.

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CHAPTER 2 CHAPTER 2

OBLIGATIONS OF THE PARTIES OBLIGATIONS OF THE PARTIES I. Obligations of the carrier

I. Obligations of the carrier

A.

A.DUTY TO ACCEPTDUTY TO ACCEPT

-- _{A common carrier granted a certificate of public}_{A common carrier granted a certificate of public}

convenience is duty bound to accept passengers or convenience is duty bound to accept passengers or cargo without any discrimination.

cargo without any discrimination.

-- _{It is illegal for domestic ship operators to refuse to}_{It is illegal for domestic ship operators to refuse to}

accept or carry passengers or cargo without just accept or carry passengers or cargo without just cause. (Section 16, RA 9295)

cause. (Section 16, RA 9295) Note: In

Note: In air transportationair transportation, passengers with confirmed, passengers with confirmed tickets who were not allowed to board are provided with tickets who were not allowed to board are provided with denied boarding compensation and priority boarding rules. denied boarding compensation and priority boarding rules.

No compensation for refusal if it is because of: No compensation for refusal if it is because of: 1.

1. government requisition of the spacegovernment requisition of the space 2.

2. substitution of equipment of lesser capacity whensubstitution of equipment of lesser capacity when required by operational and or safety and/or other required by operational and or safety and/or other causes beyond the control of the carrier, and

causes beyond the control of the carrier, and 3.

3. if arrangements have been made for the passengerif arrangements have been made for the passenger to take another flight in a comparable air to take another flight in a comparable air transportation which will arrive not later than three transportation which will arrive not later than three hours after the time of flight on which the confirmed hours after the time of flight on which the confirmed space is held is supposed to arrive. (Civil space is held is supposed to arrive. (Civil Aeronautics Board Economic Regulation)

Aeronautics Board Economic Regulation)

Grounds for Valid Refusal to Accept Goods Grounds for Valid Refusal to Accept Goods

-- _{GR: common carriers cannot lawfully decline to accept}_{GR: common carriers cannot lawfully decline to accept}

a particular class of goods a particular class of goods

-- _{EXC: it appears that for some sufficient reason the}_{EXC: it appears that for some sufficient reason the}

discrimination against the traffic in such goods is discrimination against the traffic in such goods is reasonable and necessary:

reasonable and necessary:

i.i. dangerous objects or substances includingdangerous objects or substances including dynamites and other explosives

dynamites and other explosives ii.

ii. goods are unfit for transportationgoods are unfit for transportation iii.

iii. acceptance would result in overloadingacceptance would result in overloading iv.

iv. contrabands or illegal goodscontrabands or illegal goods v.

v. goods injurious to healthgoods injurious to health vi.

vi. goods will be exposed to untoward dangergoods will be exposed to untoward danger like flood, capture by enemies and the like like flood, capture by enemies and the like vii.

vii. goods like livestock will be exposed togoods like livestock will be exposed to diseases

diseases viii.

viii. strikestrike ix.

ix. failure to tender goods on timefailure to tender goods on time

Case: Fisher v. Yangco Case: Fisher v. Yangco

-- _{factors in determining reasonable discrimination}_{factors in determining reasonable discrimination}

include: include:

i.i. suitability to the vessel for the transportation ofsuitability to the vessel for the transportation of such products;

such products;

(1) Hazardous and Dangerous Substances (1) Hazardous and Dangerous Substances

-- _{Carrier not properly equipped to transport}_{Carrier not properly equipped to transport}

dangerous chemicals or explosives may validly dangerous chemicals or explosives may validly refuse to accept the same for transport.

refuse to accept the same for transport.

-- _{Those which are not authorized by the Maritime}_{Those which are not authorized by the Maritime}

Industry Authority to carry such goods may also Industry Authority to carry such goods may also validly refuse the same for transport.

validly refuse the same for transport.

-- _{There must be a Special Permit to Carry from the}_{There must be a Special Permit to Carry from the}

MARINA. (accept only if the said cargoes are covered MARINA. (accept only if the said cargoes are covered by the necessary clearance from appropriate by the necessary clearance from appropriate government agencies)

government agencies)

(2) Unfit for Transport (2) Unfit for Transport

-- _{Carriers may refuse to accept goods that are unfit}_{Carriers may refuse to accept goods that are unfit}

for transportation for transportation

-- _{These goods may by nature be unfit for}_{These goods may by nature be unfit for}

transportation or are unfit because of improper transportation or are unfit because of improper packaging or defect in their containers.

packaging or defect in their containers.

-- _{However, carriers may accept the goods and limit its}_{However, carriers may accept the goods and limit its}

liability by stipulation. liability by stipulation.

If by reason of well-founded suspicion of falsity in the If by reason of well-founded suspicion of falsity in the declaration as to the contents of the package carrier should declaration as to the contents of the package carrier should decide to examine and investigate it in the presence of decide to examine and investigate it in the presence of witnesses, with the shipper and consignee in attendance. If witnesses, with the shipper and consignee in attendance. If declaration of shipper is true, expenses occasioned by the declaration of shipper is true, expenses occasioned by the examination and of repacking the packages shall be for the examination and of repacking the packages shall be for the account of the carrier

account of the carrier

Even if the cause of the loss, destruction or deterioration of Even if the cause of the loss, destruction or deterioration of the goods should be caused by the character of the goods, or the goods should be caused by the character of the goods, or the faulty nature of the packing or of the containers, the the faulty nature of the packing or of the containers, the common carrier must exercise due diligence to forestall or common carrier must exercise due diligence to forestall or lessen the loss.

lessen the loss. B.

B.DUTY TO DELIVER THE GOODSDUTY TO DELIVER THE GOODS 

 Time of DeliveryTime of Delivery

-- _{Where a carrier has made an express contract, the goods}_{Where a carrier has made an express contract, the goods}

must be delivered within a specified time otherwise he is must be delivered within a specified time otherwise he is liable for any delay (indemnity for damages).

liable for any delay (indemnity for damages).

-- _{In the absence of any agreement, goods must be}_{In the absence of any agreement, goods must be}

delivered at its destination within a reasonable time delivered at its destination within a reasonable time (depending on the attending circumstances, nature of (depending on the attending circumstances, nature of the goods; expected date of arrival in the BOL may be the goods; expected date of arrival in the BOL may be considered).

considered).

-- _{In the absence of a special contract, a carrier is NOT an}_{In the absence of a special contract, a carrier is NOT an}

insurer against delay in transportation of goods insurer against delay in transportation of goods 

 Consequences/Effects of DelayConsequences/Effects of Delay

-- _{Excusable delays in carriage suspend, but do not}_{Excusable delays in carriage suspend, but do not}

generally terminate, the contract of carriage; when the generally terminate, the contract of carriage; when the

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Article

Article 1740 1740 (NCC).(NCC). If common carrierIf common carrier negligently delaysnegligently delays

in transporting the goods, a natural disaster shall not free it in transporting the goods, a natural disaster shall not free it from responsibility.

from responsibility.

Article 1747 (NCC).

Article 1747 (NCC).If common carrier delays ,If common carrier delays , without justwithout just cause

cause, in transporting the goods or changes the stipulated or, in transporting the goods or changes the stipulated or usual route, the contract limiting its liability cannot be usual route, the contract limiting its liability cannot be availed of in case of the loss, destruction, or deterioration of availed of in case of the loss, destruction, or deterioration of the goods.

the goods.

Note: read page 72 of book for other provisions. Note: read page 72 of book for other provisions. (1)

(1) Abandonment Abandonment

-- _{In case of delay through the fault of the carrier, the}_{In case of delay through the fault of the carrier, the}

consignee may refuse to accept the goods or may consignee may refuse to accept the goods or may leave the goods in the hands of the carrier. It must leave the goods in the hands of the carrier. It must be communicated to the carrier in writing.

be communicated to the carrier in writing.

-- _{This right must be exercised between the time of}_{This right must be exercised between the time of}

delay and before the arrival of the goods at its delay and before the arrival of the goods at its destination.

destination.

-- _{The carrier must pay the full value of the goods as if}_{The carrier must pay the full value of the goods as if}

they had been lost or mislaid. they had been lost or mislaid.

Note: If abandonment is not made, indemnification for the Note: If abandonment is not made, indemnification for the losses and damages by reason of the delay cannot exceed the losses and damages by reason of the delay cannot exceed the current price which the goods would have on the day and at current price which the goods would have on the day and at the place they are to be delivered.

the place they are to be delivered.

The value of the goods which the carrier must pay in case of The value of the goods which the carrier must pay in case of loss or misplacement shall be that what is declared in the bill loss or misplacement shall be that what is declared in the bill of lading.

of lading.

Consignee must not defer the payment of the expenses and Consignee must not defer the payment of the expenses and transportation charges of the goods otherwise carrier may transportation charges of the goods otherwise carrier may demand the judicial sale of the goods.

demand the judicial sale of the goods.

Case: Magellan Mfg. Marketing Corp. vs. CA Case: Magellan Mfg. Marketing Corp. vs. CA

-- _{Abandonment may also be made by virtue of}_{Abandonment may also be made by virtue of}

stipulation or agreement between parties stipulation or agreement between parties (2)

(2)Rights of Passengers in Case of DelayRights of Passengers in Case of Delay

-- _{As to the rights and duties of the parties strictly}_{As to the rights and duties of the parties strictly}

arising out of delay, the Civil Code is silent. However, arising out of delay, the Civil Code is silent. However, the Code of Commerce provides for such a situation: the Code of Commerce provides for such a situation:

ARTICLE

ARTICLE 698698. In case a voyage already begun should be. In case a voyage already begun should be interrupted, the passengers shall be obliged to pay the fare in interrupted, the passengers shall be obliged to pay the fare in proportion to the distance covered, without right to recover proportion to the distance covered, without right to recover for losses and damages if the interruption is due to for losses and damages if the interruption is due to

fortuitous event of force majeure

fortuitous event of force majeure, but with a right to, but with a right to

Note: the carrier is liable for any loss or damage, including Note: the carrier is liable for any loss or damage, including any pecuniary loss or loss of profit, which the passenger may any pecuniary loss or loss of profit, which the passenger may have suffered by reason thereof.

have suffered by reason thereof.

In case the vessel is not able to depart on time and the delay In case the vessel is not able to depart on time and the delay is unreasonable, the passenger may opt to have his/her is unreasonable, the passenger may opt to have his/her ticket immediately refunded without any refund service fee ticket immediately refunded without any refund service fee from the authorized issuing/ticketing office.

from the authorized issuing/ticketing office. 

 Where and to Whom DeliveredWhere and to Whom Delivered a.

a. PlacePlace –– Goods should be delivered to the consignee Goods should be delivered to the consignee in the place agreed upon by the parties.

in the place agreed upon by the parties.

The shipper may change the consignment of the goods The shipper may change the consignment of the goods provided that at the time of ordering the change of the provided that at the time of ordering the change of the consignee the bill of lading signed by the carrier be returned consignee the bill of lading signed by the carrier be returned to him, in exchange for another wherein the novation of the to him, in exchange for another wherein the novation of the contract appears. The expenses occasioned by the change contract appears. The expenses occasioned by the change shall be for the account of the shipper.

shall be for the account of the shipper. b.

b. ConsigneeConsignee –– Delivery must generally be made to the Delivery must generally be made to the owner or consignee or to someone lawfully owner or consignee or to someone lawfully authorized by him to receive the goods for his authorized by him to receive the goods for his account or to the holder of the negotiable account or to the holder of the negotiable instrument.

instrument. c.

c. Delay to Transport PassengersDelay to Transport Passengers –– A carrier is duty A carrier is duty bound to transport the passenger with reasonable bound to transport the passenger with reasonable dispatch

dispatch Effects of

Effects of ‘delayed and unfinished voyage’ ‘delayed and unfinished voyage’ in inter-island in inter-island vessels:

vessels: 

 vessel cannot continue or complete her voyage forvessel cannot continue or complete her voyage for any cause

any cause –– carrier is under obligation to transport carrier is under obligation to transport the passenger to his/her destination at the expense the passenger to his/her destination at the expense of the carrier including free meals and lodging of the carrier including free meals and lodging before the passenger is transported to his/her before the passenger is transported to his/her destination; the passenger may opt to have his/her destination; the passenger may opt to have his/her ticket refunded in full if the cause of the unfinished ticket refunded in full if the cause of the unfinished voyage is due to the negligence of the carrier or to voyage is due to the negligence of the carrier or to an amount that will suffice to defray transportation an amount that will suffice to defray transportation cost at the shortest possible route if the cause of the cost at the shortest possible route if the cause of the unfinished voyage is fortuitous event.

unfinished voyage is fortuitous event. 

 vessel is delayed in arrival at the port of destinationvessel is delayed in arrival at the port of destination –

– free meals during mealtime free meals during mealtime 

 delay in departure at the point of origin due todelay in departure at the point of origin due to carrier’s negligence; fortuitous event

carrier’s negligence; fortuitous event - free meals- free meals during mealtime; carrier not obliged to serve free during mealtime; carrier not obliged to serve free meals

meals 

 carrier is not obliged to inform passengers of sailingcarrier is not obliged to inform passengers of sailing schedule of the vessel

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ARTICLE

ARTICLE 17551755. A common carrier is bound to carry the. A common carrier is bound to carry the passengers safely as far as human care and foresight can passengers safely as far as human care and foresight can provide, using the utmost diligence of very cautious persons, provide, using the utmost diligence of very cautious persons, with a due regard for all the circumstances. (Civil Code) with a due regard for all the circumstances. (Civil Code)

-- _{Presumption of Negligence}_{Presumption of Negligence}

-- _{Two conditions for the birth of the presumption of}_{Two conditions for the birth of the presumption of}

negligence: negligence: 1.

1. there exists a contract between the passenger or thethere exists a contract between the passenger or the shipper and the common carrier

shipper and the common carrier 2.

2. the loss, deterioration, injury or death took placethe loss, deterioration, injury or death took place during the existence of the contract

during the existence of the contract

Doctrine of Proximate Cause

Doctrine of Proximate Cause –– there is presumption of there is presumption of negligence

negligence

If the goods are lost, destroyed or deteriorated, common If the goods are lost, destroyed or deteriorated, common carriers are presumed to have acted negligently, unless they carriers are presumed to have acted negligently, unless they prove that they observed extraordinary diligence. In case of prove that they observed extraordinary diligence. In case of death of or injuries to passengers, common carriers are death of or injuries to passengers, common carriers are presumed to have been at fault or to have acted negligently, presumed to have been at fault or to have acted negligently, unless they prove that they observed extraordinary unless they prove that they observed extraordinary diligence.

diligence.

-- _{Duration of Duty:}_{Duration of Duty:}

(1)

(1) Carriage of GoodsCarriage of Goods

-- _{Due diligence should be exercised the moment}_{Due diligence should be exercised the moment}

the goods are delivered to the carrier. the goods are delivered to the carrier.

-- _{Goods are deemed delivered to the carrier when}_{Goods are deemed delivered to the carrier when}

the goods are ready for and have been placed in the goods are ready for and have been placed in the exclusive possession, custody and control of the exclusive possession, custody and control of the carrier for the purpose of their immediate the carrier for the purpose of their immediate transportation and the carrier has accepted transportation and the carrier has accepted them

them

ARTICLE

ARTICLE 17361736. The extraordinary responsibility of the. The extraordinary responsibility of the common

common carrier lasts carrier lasts from from the the time time the the goods goods areare unconditionally placed in

unconditionally placed in the possession the possession of, and received of, and received byby the carrier for transportation until the same are delivered, the carrier for transportation until the same are delivered, actually or constructively, by the carrier to the consignee or actually or constructively, by the carrier to the consignee or to the person who has a right to receive them…

to the person who has a right to receive them…

ARTICLE

ARTICLE 17371737. The com. The common carrier’s duty to observemon carrier’s duty to observe extraordinary diligence over the goods remains in full force extraordinary diligence over the goods remains in full force and effect even when they are temporarily unloaded or and effect even when they are temporarily unloaded or stored in transit, unless the shipper or owner has made use stored in transit, unless the shipper or owner has made use of

of the the right of right of stoppage stoppage in in transitu. transitu. (common carrier(common carrier becomes a warehouseman

becomes a warehouseman –– ordinary diligence) ordinary diligence)

ARTICLE

ARTICLE 17381738. The extraordinary liability of the common. The extraordinary liability of the common carrier continues to be operative even during the time the carrier continues to be operative even during the time the goods are stored in a warehouse of the carrier at the place if goods are stored in a warehouse of the carrier at the place if

By trains

By trains –– the extraordinary responsibility of common the extraordinary responsibility of common carrier commences the moment the person who purchases carrier commences the moment the person who purchases the ticket (or a ‘token’ or ‘card’) from the carrier presents the ticket (or a ‘token’ or ‘card’) from the carrier presents himself at the proper place and in a proper manner to be himself at the proper place and in a proper manner to be transported with a bona fide intent to ride the coach.

transported with a bona fide intent to ride the coach.

* Mere purchase of a ticket does not of itself create the * Mere purchase of a ticket does not of itself create the relation of carrier and passenger but it is an element in the relation of carrier and passenger but it is an element in the inception of the relation.

inception of the relation.

* A proper person who enters upon the carrier’s premises * A proper person who enters upon the carrier’s premises (station, ticketing office, or waiting room) with the intention (station, ticketing office, or waiting room) with the intention of becoming a passenger will ordinarily be viewed as of becoming a passenger will ordinarily be viewed as assuming the status of a passenger.

assuming the status of a passenger.

* One who goes to the railroad station to inquire as to the * One who goes to the railroad station to inquire as to the possibility of securing passage on a freight train, which he possibility of securing passage on a freight train, which he knows, by the rules of the company, is not allowed to carry knows, by the rules of the company, is not allowed to carry passengers, and to secure passage thereon if possible, is not passengers, and to secure passage thereon if possible, is not entitled to the rights of a passenger but is a mere trespasser. entitled to the rights of a passenger but is a mere trespasser. * One who rides upon any part of the vehicle or conveyance * One who rides upon any part of the vehicle or conveyance which is unsuitable or dangerous, or which he knows is not which is unsuitable or dangerous, or which he knows is not intended for passengers, is not presumed to be a passenger. intended for passengers, is not presumed to be a passenger. * One who secures free passage by fraud or stealth is * One who secures free passage by fraud or stealth is precluded from recovery for injuries sustained through the precluded from recovery for injuries sustained through the negligence of the carrier, for he has not assumed the status of negligence of the carrier, for he has not assumed the status of a passenger.

a passenger.

* A person riding on a freight train, on a driver’s pass or * A person riding on a freight train, on a driver’s pass or similar arrangement, to look after livestock being similar arrangement, to look after livestock being transported and as incident to such transportation is, transported and as incident to such transportation is, generally regarded as a passenger for hire.

generally regarded as a passenger for hire.

Motor vehicles like jeepneys and buses

Motor vehicles like jeepneys and buses –– are duty bound are duty bound to stop their conveyances for a reasonable length of time in to stop their conveyances for a reasonable length of time in order to afford passengers an opportunity to board and order to afford passengers an opportunity to board and enter, and they are liable for injuries suffered by boarding enter, and they are liable for injuries suffered by boarding passengers resulting from the sudden starting up or jerking passengers resulting from the sudden starting up or jerking of their conveyances while they do so. Once a public utility of their conveyances while they do so. Once a public utility bus or jeepney stops, it is making a continuous offer to bus bus or jeepney stops, it is making a continuous offer to bus riders.

riders.

Case: Dangwa Transportation Company vs. CA Case: Dangwa Transportation Company vs. CA

-- _{When the bus is not in motion there is no necessity for}_{When the bus is not in motion there is no necessity for}

a person who wants to ride the same to signal his a person who wants to ride the same to signal his intention to board. A public utility bus, once it stops, is intention to board. A public utility bus, once it stops, is in effect making a continuous offer to bus riders

in effect making a continuous offer to bus riders

-- _{The premature acceleration of the bus in this case was}_{The premature acceleration of the bus in this case was}

a breach of such duty a breach of such duty

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And what is reasonable time or a reasonable delay And what is reasonable time or a reasonable delay within this rule is to be determined from all the within this rule is to be determined from all the circumstances.

circumstances.

Case: Aboitiz Shipping Corporation vs. CA Case: Aboitiz Shipping Corporation vs. CA

-- _{Same ruling with}_{Same ruling with}_{La Mallorca vs. CA}_{La Mallorca vs. CA}

-- _{That reasonableness of time should be made to}_{That reasonableness of time should be made to}

depend on the attending circumstances of the case, depend on the attending circumstances of the case, such as the kind of common carrier, the nature of its such as the kind of common carrier, the nature of its business, the customs of the place, and so forth, and business, the customs of the place, and so forth, and therefore precludes a consideration of the time therefore precludes a consideration of the time element per se without taking into account such other element per se without taking into account such other factors

factors

-- _{The primary factor to be considered is the existence of}_{The primary factor to be considered is the existence of}

a reasonable cause as will justify the presence of the a reasonable cause as will justify the presence of the victim on or near the petitioner’s vessel. We believe victim on or near the petitioner’s vessel. We believe there exists such a justifiable cause (baggage were there exists such a justifiable cause (baggage were left)

left)

DEFENSES OF COMMON CARRIERS DEFENSES OF COMMON CARRIERS Article 1734

Article 1734 (No (No other defense other defense may be may be raised: exclusiveraised: exclusive or closed list)

or closed list)

1.

1. Flood, storm, earthquake, lightning, or other naturalFlood, storm, earthquake, lightning, or other natural disaster or calamity

disaster or calamity 2.

2. Act of the public enemy in war, whether international orAct of the public enemy in war, whether international or civil

civil 3.

3. Act or omission of the shipper or owner of the goodsAct or omission of the shipper or owner of the goods 4.

4. The character of the goods or defects in the packing or inThe character of the goods or defects in the packing or in the containers

the containers 5.

5. Order or act of competent public authorityOrder or act of competent public authority 6.

6. Exercise of extraordinary diligenceExercise of extraordinary diligence Fortuitous Event

Fortuitous Event –– to be a valid defense must be established to be a valid defense must be established to be the proximate cause of the loss

to be the proximate cause of the loss

Note: Since common carrier is presumed is to be negligent, it Note: Since common carrier is presumed is to be negligent, it has been observed that the DOCTRINE of PROXIMATE has been observed that the DOCTRINE of PROXIMATE CAUSE is INAPPLICABLE to a contract of carriage. The CAUSE is INAPPLICABLE to a contract of carriage. The injured passenger or owner of goods need not prove injured passenger or owner of goods need not prove causation to establish his case.

causation to establish his case.

In order for the common carrier to be exempted from In order for the common carrier to be exempted from responsibility, the natural disaster must have been the responsibility, the natural disaster must have been the proximate and only cause of the loss. However, the common proximate and only cause of the loss. However, the common carrier must ex

carrier must exercise due ercise due diligence to prevent diligence to prevent or minimizeor minimize loss before, during and after the occurrence of flood, storm loss before, during and after the occurrence of flood, storm or other natural disaster in order that the common carrier or other natural disaster in order that the common carrier may be exempted from liability for the loss, destruction, or may be exempted from liability for the loss, destruction, or deterioration of the goods.

deterioration of the goods.

Fire

Fire–– not considered as a natural calamity or disaster not considered as a natural calamity or disaster

Fire caused by lightning

Fire caused by lightning–– a natural calamity a natural calamity

Hijacking

Hijacking –– does not fall under the categories of exempting does not fall under the categories of exempting causes; the common carrier is presumed to be at fault or to causes; the common carrier is presumed to be at fault or to have acted negligently unless there is a proof of have acted negligently unless there is a proof of extraordinary diligence on its part

extraordinary diligence on its part

Mechanical defects

Mechanical defects –– damage or injury resulting from damage or injury resulting from mechanical defects is not a damage or injury that was caused mechanical defects is not a damage or injury that was caused by fortuitous event; carrier is liable to its passengers for by fortuitous event; carrier is liable to its passengers for damages caused by mechanical defects of the conveyance damages caused by mechanical defects of the conveyance (breakage of a faulty drag-link spring, fracture of the (breakage of a faulty drag-link spring, fracture of the vehicle’s right steering knuckle, defective breaks)

vehicle’s right steering knuckle, defective breaks)

-- _{One of the reason why carrier is made liable}_{One of the reason why carrier is made liable}

despite the presence of mechanical defect is the despite the presence of mechanical defect is the absence of privity between the passenger and the absence of privity between the passenger and the manufacturer

manufacturer

Case: Juntilla v. Fontanar Case: Juntilla v. Fontanar

-- _“Tire_{“Tire--blowouts” was not considered as fortuitous event}_{blowouts” was not considered as fortuitous event}

although it was alleged that the tires were in good although it was alleged that the tires were in good condition; no evidence was presented to show that the condition; no evidence was presented to show that the evidence were due to adverse road conditions

evidence were due to adverse road conditions –– the the carrier must prove all angles.

carrier must prove all angles.

-- _{The explosion could have been caused by too much air}_{The explosion could have been caused by too much air}

pressure injected into the tires and the fact that the pressure injected into the tires and the fact that the jeepney was overloaded and speeding at the time of the jeepney was overloaded and speeding at the time of the accident.

accident.

OTHER INVALID DEFENSES OTHER INVALID DEFENSES

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