LAWS ON TRANSPORTATION

SCHOOL YEAR 2019-2020 2ND SEMESTER

MANUEL L. QUEZON UNIVERSITY SCHOOL OF LAW

ATTY. ROLANDO G. BORJA

The course covers the study of Common Carriers (Arts. 1732-

1766, Book V, New Civil Code), Public Service Law, Commercial Contract for
Transportation, Land Transportation, Marine Transportation, and Carriage
of Good by Sea Act.

COURSE OBJECTIVES

At the end of the semester the students are expected to gain an in-
depth knowledge and understanding of the provisions of the Civil Code
Common Carriers (Arts. 1732-1766, Book V, New Civil Code) and the
provisions of Public Service Law, Commercial Contract for Transportation,
Land Transportation, Marine Transportation, and Carriage of Good by Sea
Act

TOPICS

LAWS ON TRANSPORTATION

I. GENERAL CONCEPTS.

A. Contract of transportation/carriage in general

1. Essential requisites
2. Parties to contracts of carriage of goods and of passengers
a. Carriage of passengers
b. Carriage of goods
B.   Public utilities/public service
C. Constitutional provisions on public utilities ( Sections 11,17, 18
and 19, Article XII, 1987 Constitution)
 Foreign Ownership of public utilities
Cases: JG Summit vs CA, G.R. No. 124293, September 24, 2003;
Gamboa vs Teves, G.R. No. 176579, October 9, 2012; Tatad vs Garcia,
G.R. No. 114222 April 6, 1995.

II. COMMON CARRIERS

A. Meaning of Common Carrier (Art. 1732 NCC)

B. Classifications of carriers; Distinctions.
1. Private or special carrier
2. Common or public carriers

C. Governing laws.
 Cases: De Guzman vs CA, G.R. No. L-47822 December 22, 1988;
Pereña v. Zarate, GR 157917, Aug. 29, 2012; First Phil. Industrial Corp
vs CA, G.R. No. 125948 December 29, 1998; National Steel Corp. vs
Vlasons,  G.R. No. 112287; Spouses Cruz v. Sun Holidays Inc. G.R. No.
186312, June 29, 2010; Asia Lighterage Shipping Inc. v. CA, GR
147246. Aug. 19, 2003; Crisostomo v. CA. GR 138334, Aug. 25, 2003;
TRANSIMEX CO. vs MAFRE ASIAN INSURANCE CORP., G.R. No.
199455, June 27, 2018.

. D. Obligations of the Carrier in Contract for the Carriage of Goods

1. Take good care of the goods.
a. Degree of diligence required – extraordinary
diligence. (Art. 1733 NCC)
b. Presumption of negligence (Art. 11735 NCC)
c. Duration of liability (Art. 1736 NCC)
d, Defenses available to common carriers to be
exempted from liability (Arts. 1734, 1739, 111740, 1742 and
17430 NCC)
i. Fortuitous event (Art. 1739 NCC)
ii. Public enemy (Art. 1739 NCC)
iii. Improper packing (Art. 1742 NCC)
iv. Order of public authority (Art, 1741 NCC)
e. Contributory negligence of the shipper (Art. 1741
NCC)
f. Stipulations limiting the liability of the carrier (Arts.
1744, 1748, 1749 and 17 1750)
i. Requisites for validity
ii. Invalid stipulations
iii. Effect of delay (Art, 1747 NCC)
1v. Rule on the presumption of negligence despite
delay. (Art. 1752, NCC)
Cases: Asia Lighterage Shipping Inc. v. CA, GR 147246. Aug.
19, 2003Gatchalian v. Delim, GR 56487. Oct. 21, 1991; Compania
Maritima v. CA, GR L-31379. Aug. 29, 1988; Eastern Shipping
Lines, Inc. vs. BPI/MS INSURANCE CORP., G.R. No. 193986,
January 15, 2014; Ganzon v. Court of Appeals, G.R. No. L-48757
May 30, 1988; Bascos vs CA, G.R. No. 101089. April 7, 1993;
TRANSIMEX CO. vs MAFRE ASIAN INSURANCE CORP., G.R. No.
199455, June 27, 2018; TORRES-MADRID BROKERAGE, INC.vs.
FEB MITSUI MARINE INSURANCE CO., INCG.R. No. 194121, July
11, 2016; Fedex vs Antonino, G.R. No. 199455, June 27, 2018;
Shewaram vs CA, G.R. No. L-20099, July 7, 1966

2. Other obligations.
a. Duty to accept the goods
i. Grounds for a valid refusal to accept goods
b. Duty to deliver the goods
 i. Time of Delivery
ii. Consequences of delay (Arts. 1740 & 1747)
iii. Place of Delivery
iv. To whom delivery shall be made (Arts. 1240)
Cases: Ganzon v. Court of Appeals, G.R. No. L-48757 May 30,
1988; Benedico v. Intermediate Appellate Court G.R. No. 70876 July 9,
1990; Eastern Shipping Lines, Inc. v. Court of Appeals, G.R. No. 97412
July 12, 1994; Sarkies Tours Philippines, Inc. v. Court of Appeals G.R.
No. 108897. October 2, 1997; Macam v. Court of Appeals, G.R. No.
125524, August 25, 1999, SeaLand Services, Inc. v. Intermediate
Appellate Court, G.R. No. 57828. June 14, 1993; Everette Steamship
Corp. v. Court of Appeals, G.R. No. 122494 October 8, 1998. EDGAR
COKALIONG SHIPPING LINES, vs UCP Insurance, G.R. No. 146018
June 25, 2003

D. Obligations of Common Carrier in Carriage of Passengers.

1. Safety of Passengers
a. Duty to observe utmost diligence (Art. 1755)
b. Duration of Liability
c. Presumption of negligence (Art. 1756)
d. ` Liability for acts of its employees (Art. 1759)
e. Liability for acts of strangers and/or third parties
(Art. 1763)
f. Effect of stipulations regarding liability (Arts. 1757,
1758 & 1760)
g. Respondeat Superior
2. Baggage (Arts. 1754, 7998, 2000 to 2003)
Cases: Pereña v. Zarate, GR 157917, Aug. 29, 2012; Nocum v. Laguna
Tayabas Bus Co. G.R. No. L-23733            October 31, 1969; TRANS-
ASIA SHIPPING LINES, INC vs CA, G.R. No. 118126 March 4, 1996;
Korean Airlines Co. Ltd. V. Court of Appeals G.R. No. 114061. August 3,
1994; Dangwa Transportation Co., Inc. v. Court of Appeals GR No.
95582, Oct 07, 1991; Fortune Express, Inc. v. Court of Appeals G.R. No.
119756 March 18, 1999; Yobido v. Court of Appeals GR No. 113003,
Oct 17, 1997; La Mallorca De Jesus v. Court of Appeals GR No. L-
20761, Jul 27, 1966; Aboitiz Shipping Corp. v. Court of Appeals G.R.
No. 84458 November 6, 1989; Pilapil v. Court of Appeals GR No. 52159,
Dec 22, 1989; Gacal v. PAL GR NO. 55300, Mar 15, 1990; GV Florida
Transport vs Battung G.R. No. 208802, October 14, 2015, SULPICIO
LINES, INC vs Sesante, G.R. No. 172682, July 27,2016; Maranan vs.
Perez, GR L-22272. June 26, 1967; SABENA BELGIAN WORLD
AIRLINES vs CA, G.R. No. 104685 March 14, 1996.

E. Obligations of shipper, Consignee and Passenger

1. Effect of negligence on the part of the shipper or
passenger (Arts. 1741 & 1761-1762)
2. Payment of freight
3. Liability for demurrage
 F. Damages for Breach of Contract of Carriage (Art. 1764-1766,
Title XVII on Damages)
1. Damages that maybe awarde
2. Cancellation of the Certificate of Public Convenience.
Cases: Fortune Express, Inc. v. Court of Appeals G.R. No. 119756
March 18, 1999; Dangwa Transportation Co., Inc. v. Court of Appeals
GR No. 95582, Oct 07, 1991; Singson vs CA, G.R. No. 119995 November
18, 1997; Sulpicio Lines vs Curso, G.R. No. 157009 : March 17, 2010