Liam Laurence D.
Lacayanga
2019
Transportaion Law
Bill of Lading
I. Prohibited and Limiting Stipulations
Invalid Stipulations
1. Exculpatory Contracts
 A stipulation exempting the carrier
from any and all liability for loss or
damage occasioned by its own
negligence.
Examples:
a. That the goods are transported at
the risk of the owner or shipper;
b. That the common carrier will not be
liable for any loss, destruction, or
deterioration of the goods;
c. That the common carrier need not
observe any diligence in the custody
of the goods;
d. That the common carrier shall
exercise a degree of diligence less
that that of a good father of a family,
or of ordinary prudence in the
vigilance over the movables
transported;
e. That the common carrier shall not
be responsible for the acts or
omission of his or its employees;
f. That the common carrier’s liability
for acts committed by thieves, or of
robbers who do not act with grave
irresistible threat, violence or force,
is dispensed with or diminished;
g. g. That the common carrier is not
August 13,
Valid Stipulations
2. Qualified Limitations
 A stipulation limiting the liability of the
carrier to an agreed valuation unless
the shipper declares a higher value and
pays for a higher rate of freight.
 May be annulled by shipper or owner if
the common carrier refused to carry the
goods unless the former agreed to such
stipulation.
 Cannot be availed of in case of loss,
destruction and deterioration of the
goods if the common carrier, without
just cause, delays the transportation of
the goods or changes the stipulated or
usual route.
Examples:
a. An agreement limiting carrier’s liability
for the delay on account of strikes and
riots;
b. An agreement limiting the carrier’s
liability to the value of the goods
appearing in the bill of lading, unless
the shipper or owner declares a greater
value;
c. A contract fixing the sum that may be
recovered by the owner or shipper for
the loss, destruction, or deterioration of
the goods, if it is reasonable and just
under the circumstances, and has been
fairly and freely agreed upon;
 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.
2. Unqualified Limitations
 A stipulation providing for an
unqualified limitation of such liability
to an agreed valuation.

II. Stipulations Reducing diligence.

 The parties may stipulate that the diligence of a good father of a family be exercised for
the contract of carriage of goods provided that the following requisites be complied with:
1. That the stipulation be in writing signed by both parties;
2. That the stipulation be supported by a valuable consideration other than the services
rendered by the common carrier; and
3. That the stipulation be reasonable, just and not contrary to law.
 No reduction of diligence allowed for Carriage of passengers.

Actions and Damages in Case of Breach

I. Culpa Contractual vs. Culpa Acquiliana

Basis Culpa Contractual Culpa Aquiliana

Source of Obligation
Liability of Employee
Availability of Defense
In What Capacity Liable
Nature of negligence
Defense of a “Good Father of
a Family”
Presumption of Negligence
Contract
No liability there being no
privity of contract.
Due diligence in the selection
and supervision of the
employee is not a defense.
Liable as a contracting party.
Negligence is merely
incidental to the performance
of the contractual obligation.
There is a pre-existing
contract or obligation
(Rakes vs. Atlantic, etc., 7
Phil. 395).
NOT a complete and proper
defense in the selection and
supervision of employees
(Cangco vs. MRC, 38 Phil.
768).
There is presumption of
negligence as long as it can
be proved that there was
Quasi-Delict
Solidarily liable with the
employer
Due diligence in the selection
and supervision of the
employee is a defense. (Art.
2180, CC)
Liable as an employer.
Direct, Substantive and
independent (Rakes vs.
Atlantic, etc., 7 Phil. 395).
Complete and proper
defense insofar as parents,
guardians, employers are
concerned (Art. 2180, last
par.)
NO presumption of
negligence. The injured party
must prove the negligence of
 breach of the contract . The
defendant must prove there
was no negligence in the
carrying out of the terms of
the contract (Cangco vs.
MRC, 38 Phil. 768).
the defendant (Cangco vs.
MRC, 38 Phil 768).
Otherwise, the complaint of
injured party will be
dismissed.

II. Kinds of Damages

1. Actual or Compensatory;
2. Moral;
3. Nominal;
4. Temperate or moderate;
5. Liquidated;
6. Exemplary or corrective.

III. Attorney’s Fees

 May be stipulated upon
 In absence of stipulation, attorney’s fees and expenses of litigation, other than judicial
costs, cannot be recovered, provided it is reasonable, except:
1. When exemplary damages are awarded;
2. When the defendant’s act or omission has compelled the plaintiff to litigate with
third persons or to incur expenses to protect his interest;
3. In criminal cases of malicious prosecution against the plaintiff;
4. In case clearly unfounded civil action or proceeding against the plaintiff;
5. Where the defendant acted in gross and evident bad faith in refusing to satisfy
the plaintiff’s plainly valid, just and demandable claim;
6. In actions for legal support;
7. In actions for the recovery of wages of household helpers, laborers and skilled
workers;
8. In actions for indemnity under workmen’s compensation and employer’s liability
laws;
9. In a separate civil action to recover civil liability arising from a crime;
10. When at least double judicial costs are awarded;
11. In any other case where the court deems it just and equitable that attorney’s fees
and expenses of litigation should be recovered;
IV. Moral Damages
 May be recoverd in the following analogous cases:
1. A criminal offense resulting in physical injuries;
2. Quasi-delicts causing physical injuries;
3. Seduction, abduction, rape, or other lascivious acts;
4. Adultery or concubinage;
5. Illegal or arbitrary detention or arrest;
6. Illegal search;
7. Libel, slander or any other form of defamation;
8. Malicious prosecution;
9. Acts mentioned in Article 309;
10. Acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and 35.