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By Josiah Quising

TRANSPO - Codal Summary

Article Summary
1732 Definition of common carriers (CC); verbatim
Extra-ordinary diligence (EOD) - covers acts of employees, acts of thieves or robbers without grave
or irrestible threat, violence, or force, and mechanical defect of cars, vehicles, ships, airplane, or
other equipment used in the contract of carriage (see 1745)


1734 Defenses of CC for vigilance over goods
Presumption of negligence; Extra-ordinary diligence as additional defense aside from 1734
Extent of EOD : from the time the goods are unconditionally placed in the possession of, and
received by the carrier for transportation UNTIL -> delivered, actually, or constructively, by the
carrier to the consignee, or the person who has a right to receive them.

EOD extends even when temporarily unloaded or stored in transit UNLESS with right of stoppage in
EOD extends to carrier's warehouse at the place of destination UNTIL consignee has been advised of
1738 the arrival of the goods + reasonable opportunity to remove or dispose them

Natural disaster (ND) or Public Enemy (PE) -> must be PROXIMATE and ONLY cause + due diligence
1739 (DD) to prevent/minimize loss before, during, or after ND/acts of PE

1740 Effect of delay in transporting -> ND will not exempt

Contributory negligence of shipper/owner (Proximate cause (PC) : CC) -> equitably reduce the
1741 liability of CC
CC must exercise DD to forestall or lessen the loss caused by the character of the goods, packing or
of the containers
Public Authority must have power to issue the order for such to be used as a defense of CC
Valid stipulation limiting the liability of CC over goods less than EOD VALID if : (1) IN WRITING signed
by shipper/owner ; (2) with VALUABLE CONSIDERATION other than the service rendered by CC; (3)
REASONABLE, just, and not contrary to public policy

By Josiah Quising
TRANSPO - Codal Summary
Stipulations considered unreasonable, unjust, and contrary to public policy: (1) That the goods are
transported at the risk of the owner or shipper;

(2) That the common carrier will not be liable for any loss, destruction, or deterioration of the

(3) That the common carrier need not observe any diligence in the custody of the goods;

(4) That the common carrier shall exercise a degree of diligence less than that of a good father of a
family, or of a man of ordinary prudence in the vigilance over the movables transported;

1745 (5) That the common carrier shall not be responsible for the acts or omission of his or its employees;

(6) That the common carrier's liability for acts committed by thieves, or of robbers who do not act
with grave or irresistible threat, violence or force, is dispensed with or diminished;

(7) That the common carrier is not responsible for the loss, destruction, or deterioration of goods on
account of the defective condition of the car, vehicle, ship, airplane or other equipment used in the
contract of carriage.

Stipulation INVALID if CC will not carry goods if shipper/owner will not agree to the limitation of
Stipulation INEFFECTIVE/UNAVAILABLE to CC if -> without just cause CC delays, changes
stipulated/usual route
1748 Stipulation limiting liability because of strikes/riots VALID
Liability limited by value in bill of lading UNLESS shipper/owner declares a greater value
Fixed sum for liability VALID if (1) resonable and just under the circumstances; (2) fairly and freely
agreed upon
Monopoly of line/route considered in determining if stipulation limiting liability is reasonably just
and in consonance with public policy
1752 There is still a presumption of negligence even if liability is limited
1753 Choice of law -> Law of Destination will govern the liability
EOD applies to passenger's baggage if baggage is NOT in passenger's personal custody. OTHERWISE,
ordinary diligence will apply (see Art. 1998, 2000-2003)
1755 Diligence of CC in carrying passengers : EOD
1756 Presumption of negligence for death/injury ; defense = EOD
Limiting liability (dispensing or lessening by stipulation, posting of notices, statements on tickets) for
Exception to above prohibition : if carried GRATUITOUSLY, a stipulation would be allowed (reduction
of fare will NOT justify limitation)

By Josiah Quising
TRANSPO - Codal Summary
CC liable for acts of employees (even if the acted beyond the scope of their authority OR in violation
1759 of the orders of CC); diligence in the selection and supervision of employees NOT a defense

1760 Limiting liability of CC for acts of employees NOT ALLOWED

1761 Ordinary diligence of passengers to avoid injury required
1762 Contributory negligence of passenger (PC : CC) -> equitably reduce the liability of CC
CC responsible for acts of passnegers/strangers if employees could have prevented such act by
ordinary diligence
2197 Damages : (MANTLE) Moral, Actual, Nominal, Temporal, Liquidated, Exemplary
Definition of AD: aduequate compensation only for such pecuniary loss suffered by him as he has
duly proved
2200 Indeminification = value of loss & lost profits
Contracts & quasi-contracts : liability of obligor in good faith = natural probable consequences of the
2201 breach of obligation AND which parties have foreseen/reasonably foreseen at the time the
obligation was constituted
Victim (injured/suffering loss) must exercise ordinary diligence to minimize damages
Damages may be recovered for (1) loss of earning capacity; (2) injury to company goodwill (business
standing/commercial credit)
Subrogation of rights to insurance company; deficiency to be paid by the person causing the
Mitigating circumstances : (1) The plaintiff himself has contravened the terms of the contract ; (2)
The plaintiff has derived some benefit as a result of the contract; (3) in cases where exemplary
2215 damages are to be awarded , that the defendant acted upon the advice of counsel; (4) loss would
have resulted in any event; (5) that since the filing of action, the defendant has done his best to
lessen the injury/loss
No proof of precuniary loss needed => Moral (MD), Nominal, Temperate, Liquidated (LD), Exemplary
(ExD); Everything mentioned (except LD) is discretionary
MD = physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation, and similar injury
2220 Willful injury to propert, breaches of contract with fraud/bad faith = also basis for MD
2226 LD = those agreed upon by the parties to a contract, to be paid in case of breach
ExD = imposed by way of example or correction for the public good IN ADDITION TO MD,
temperate, LD, or AD
ExD on contracts, quasi-contracts = if defendant acted in wanton, fraudulent, reckless, oppressive,
or malevolent manner (WaFROM)
2233 ExD is NOT a right ; discretionary to courts
Entitlement to MD, temperate, or AD NECESSARY for granting of ExD; if LD replaced MD, temperate,
2234 or AD, entitlement should still be proven - that plaintif will be granted such if not for the LD for ExD
to be granted