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Transportation Laws Notes Atty Zarah Villanueva Castro PDF
Transportation Laws Notes Atty Zarah Villanueva Castro PDF
Extraordinary Diligence (1997, 2001, 2002 Bar Exams) Caso Fortuito/Force Majeure
Common carriers, from the nature of their business 1. Must be proximate and only cause of loss
and for reasons of public policy, are bound to observe 2. Carrier must exercise due diligence to prevent or
extraordinary diligence in the vigilance over the minimize the loss before, during or after the disaster
goods and for the safety of passengers transported by (Art. 1739)
them, according to all circumstances of each case 3. Carrier not in delay in transporting the goods (Art.
(Art. 1733, NCC) 1740)
Liability remains:
1. Not only during the course of the trip, but for so Liability for Acts of Strangers or other Passengers
long as the passengers are within its premises 1. A common carrier is responsible for injuries suffered
and where they ought to be in pursuance to the by a passenger on account of the willful acts or
contract of carriage (LRTA vs. Navidad) negligence of other passengers or of strangers, if the
2. Includes reasonable time to remain on the common carrier’s employees, through the exercise of
premises to see after his baggage and prepare for the diligence of a good father of a family could have
his departure (La Mallorca vs. CA, 17 SCRA 739) prevented or stopped the act or omission (Art. 1763)
3. Extends to persons boarding the cars as well as to 2. The carrier is liable when its personnel allowed a
those alighting therefrom. It is the duty of passenger to drive the vehicle causing it to collide
common carriers to stop their conveyances a with another vehicle resulting to the injuries suffered
reasonable length of time to afford passengers an by the other passengers (MRR v. Ballesteros, 16 SCRA
opportunity to enter (Dangwa Trans Co. vs. CA, 641)
202 SCRA 574)
Effect of Stipulation on Liability
Presumption of Negligence General Rule: Liability cannot be dispensed with or
1. In case of death of or injury to passengers, common lessened by stipulation, posting of notices,
carriers are presumed to have been at fault or to statements on tickets or otherwise (Art. 1757)
have acted negligently (Art. 1756 NCC). This provision
applies the doctrine of res ipsa loquitor for several Exception: When a passenger is carried gratuitously, a
reasons: stipulation limiting the common carrier’s liability for
a. The contract imposes on the carrier the negligence is valid
obligation to transport the passengers safely,
hence the burden of explaining should fall on the Exception to the exception: Willful acts or gross
carrier; negligence (Art. 1758)
consignees) undertake specific responsibilities and
Passenger’s Hand-carried Baggage assume stipulated obligations.
3. A legal evidence of the contract between the shipper
HAND-CARRIED CHECKED-IN and the carrier. Its contents shall decide all disputes
(In custody of passengers (In custody of the which may arise with regard to their execution and
or their employees) carrier) fulfillment. (Magellan Manufacturing v. CA, 201 SCRA
Necessary deposit Considered as goods 2021)
Common carrier Requires extraordinary In the absence of a bill of lading, their respective
exercises diligence of a diligence claims may be determined by legal proofs which each
depositary (ordinary of the contracting parties may present in conformity
diligence) with law.
Governed by Arts. 1998 Governed by Arts. 1733-
and 2000-2003 1753 Obligations of the Carrier
1. Duty to Accept Goods – see notes on Common Carriers
for ground for valid refusal to accept goods
III. ACTIONS 2. Duty to Deliver Goods to (i) person indicated in bill of
lading; or (ii) any person to whom bill of lading was
Causes of Action: validly transferred or negotiated
1. Culpa Contractual 3. see notes on Common Carriers for effects of delay
The liability of the carrier is not merely 4. Duty to exercise extraordinary diligence
subsidiary or secondary but direct, immediate
and primary. (Medina vs. Cresencia, 99 Phil. 506) Right of Consignee to Abandon the Goods
Only the carrier is primarily liable and not the 1. Partial non-delivery, where goods are useless with
driver, because there is no privity between the others (Art. 363 Code of Commerce)
driver and the passenger. 2. Goods rendered useless for sale or consumption for
No defense of due diligence in the selection and purposes for which they are properly destined (Art.
supervision of employees. (Art. 1759) 365)
3. In case of delay through the fault of carrier (Art. 371)
2. Culpa Aquiliana
The carrier and driver are solidarily liable as Notice of Damage
joint tortfeasors. Condition precedent
Defense of due diligence in the selection and Damage apparent – immediately upon delivery
supervision of employees is available. Except: Damage not apparent – within 24 hours from delivery
maritime tort resulting in collision (Art. 366)
3. Culpa Delictual
The driver is primarily liable. The carrier is Prescriptive Period
subsidiarily liable only if the driver is convicted 1. Not provided by Art. 366, hence NCC applies
and declared insolvent (Art. 100 RPC) 2. No bill of lading – within 6 years
3. With bill of lading – 10 years
OVERLAND TRANSPORTATION
ART. 366 COGSA
Scope: CODE OF COMMERCE
1. Domestic land and water/maritime transportation Notice of damage is a Notice of damage not a
2. Domestic air transportation condition precedent condition precedent
24-hour period for non- 3-day period for non-
Bill of lading apparent damage apparent damage
Written acknowledgment of receipt of goods and No prescriptive period 1-year period
agreement to transport them to a specific place to a provided. NCC applies
person named or to his order. Does not cover Also does not cover
misdelivery or delay misdelivery or delay
Note: It is not indispensable for the creation of a Extrajudicial demand Extrajudicial demand
contract of carriage. The contract itself arises from tolls prescriptive period does not toll prescriptive
the moment goods are delivered by the shipper to the period
carrier and the carrier agrees to carry them Parties can stipulate 1-year period cannot be
(Compania Maritima v. Insurance Company of North shorter period shortened
America, 12 SCRA 213)
Functions:
1. A receipt for the goods shipped.
2. A contract which the three parties (shipper, carrier,
MARITIME LAW 7. May be made to be exempted from the following
liabilities:
Characteristics: a. Civil liability to third persons arising from the
1. Real conduct of the captain in the vigilance over the
a. Similar to transactions over real property with goods
respect to effectivity against third persons which b. Proportionate contribution of co-owners of the
is done through registration vessel to a common fund for the results of the
b. Evidence of real nature is shown by (1) limitation acts of the captain referred to in Art. 587 Code
of liability of agents to actual value of the vessel of Commerce
and freight money; and (2) right to retain cargo c. Civil liability incurred by the ship owner in case
and embargo and detention of vessel (Luzon of collision
Stevedoring Corp v. CA, 156 SCRA 169)
2. Hypothecary Admiralty Jurisdiction
Liability of owner of vessel is limited to the value all actions in admiralty and maritime jurisdiction
of vessel (Doctrine of Limited Liability) where the claim exceeds P300,000 or in Metro Manila,
exceeds P400,000 the RTC has jurisdiction (Sec. 19(3)
BP 129, as amended by RA 7691)
I. DOCTRINE OF LIMITED LIABILITY
II. VESSELS
“No vessel, no liability”
The liability of ship owners is limited to the amount Engaged in navigation, whether coastwise or on the
of interest in said vessel such that where vessel is high seas, including floating docks, pontoons,
entirely lost, the obligation is extinguished (Luzon dredges, scows and any other floating apparatus
Stevedoring v. Escano, 156 SCRA 169) destined for the services of the industry or maritime
Interest extends to: commerce. Excluded are local and foreign military
1. Vessel itself vessels, bancas and other watercrafts of less than 3
2. Equipments tons gross capacity and small watercrafts engaged in
3. Freightage river and bay traffic.
4. Insurance proceeds (Chua v. IAC, 166 SCRA 183)
Ownership
Exceptions: 1. Acquisition
1. Where injury or damage is due to ship owner’s fault a. Prescription – (1) acquisition must appear in a
2. Vessel is insured written instrument, (2) which shall not produce
3. Claims under Workmen’s Compensation any effect to third persons if not inscribed in the
4. Expenses for repair on vessel before loss registry of vessels and (3) shall be acquired by
5. Vessel is not abandoned possession in good faith, continued for 3 years,
6. Voyage is not maritime but only in a river or gulf (4) with a just title duly recorded. (5) In the
absence of any of these, continuous possession
Abandonment for 10 years shall be necessary to acquire
1. Indispensable requirement before the shipowner or ownership.
ship agent can enjoy the benefits of the limited
liability principle. The only instance where such b. Sale
abandonment is dispensed with is when the vessel If made while it is on voyage – the freightage
was entirely lost. which it earns from the time it receives its last
2. Only the ship owner and the ship agent can make an cargo shall pertain entirely to the purchaser,
abandonment and the payment of the crew and other
3. What may be abandoned – vessel persons who make up its complement shall be
4. Instances: for his account.
a. Civil liability from indemnities to third persons If made after vessel arrived at port of its
(Art. 587 Code of Commerce) destination – freightage shall pertain to the
b. Leakage of at least ¾ of contents of cargo vendor, and the payment of the crew and
containing liquids (Art. 687) other individuals who make up its complement
c. Constructive loss of vessel (Sec. 138 Insurance shall be for his account, unless the contrary is
Code) stipulated in either case.
See notes on Overland Transportation for right
of consignee to abandon goods 2. Registration – through the Maritime Industry Authority
5. No procedure to be followed (MARINA)
6. No prescriptive period provided not estopped from
invoking the same or do acts inconsistent with Ship’s Manifest - Declaration of the entire cargo. The
abandonment object is to furnish customs officers with a list to check
against, to inform the revenue officers what goods are
brought into a port of the country on a vessel. Hence, the IV. CHARTER PARTY
requirement that a vessel must carry a manifest is not
complied with even if a bill of lading can be presented Contract by which an entire ship, or some principal
part thereof is let by the owner to another person for
A bill of lading is just a declaration of a specific cargo a specified time or use for the conveyance of goods,
rather than the entire cargo. It is issued as a matter in consideration of the payment of freight (Caltex
of convenience by virtue of a contract. Phils. vs. Sulpicio Lines, 315 SCRA 709)
3. An open-dated ticket constitutes a complete It is a “property” and has a considerable value and
contract between the carrier and passenger. can be the subject of sale or attachment (Cogeo-
Hence, the airline company is liable if it refused Cubao Operators vs. CA, 207 SCRA 343)
to confirm a passenger’s flight reservation
(Singson v. CA, 282 SCRA 149) Exceptions:
1. Warehouses
4. An airline company which issued a confirmed 2. Animal drawn vehicles and bancas moved by oar
ticket to a passenger covering successive trips on or sail; tugboats
different airlines can be held liable for damages 3. Airships, except for the fixing of maximum rates
occasioned by “bumping off” by one of the for fare and freight
successive airlines (Lufthansa German Airlines v. 4. Radio companies, except for rates fixing
CA, 238 SCRA 290) 5. Public services owned or operated by the
government, except as to rates fixing
6. Ice plants
5. An airline ticket providing that carriage by 7. Public markets
successive air carriers is to be regarded as a
“single operation” is to make the issuing carrier Requirements for granting certificate:
liable for the tortuous conduct of the other 1. Citizen of the Philippines, or a corporation, etc.
carrier. A printed provision in the ticket limiting constituted and organized under the laws of the
liability only to its own conduct is not enough to Philippines at least 60% of its stock or paid-up
rebut that liability (KLM Royal Dutch Airlines v. capital must belong entirely to citizens of the
CA, 65 SCRA 237) Philippines
2. Financially capable of undertaking the proposed
PUBLIC SERVICE ACT (CA 146, as amended) service
3. Proof of public necessity, interest and
Public Service - Includes any person who may own, convenience (KMU vs. Garcia, Jr., 239 SCRA 386)
operate, manage, or control in the Philippines for
hire or compensation, with general or limited Grounds for revocation of certificate:
clientele, whether permanent, occasional or 1. Where holder is a mere dummy
accidental, and done for general business purposes, 2. Where operator ceased operation and placed his
any common carrier, railroad, street railway, traction buses on storage
railway, subway motor vehicle, steamboat, or
3. Where operator totally abandons the service
(Manzanal vs. Ausejo, 164 SCRA 36)