Professional Documents
Culture Documents
v PIACO
"Public use" means the same as "use by the public." The essential feature of the
public use is that it is not confined to privilege individuals, but is open to the
indefinite public. It is this indefinite or unrestricted quality that gives it its public
character. In determining whether a use is public, we must look not only the character
of the business to be done, but also to the proposed mode of doing it. If the use is
merely optional with the owners, or the public benefit is merely incidental, it is not a
public use, authorizing the exercise of the jurisdiction of the public utility commission.
There must be, in general, a right which the law compels the power to give to the
general public. It is not enough that the general prosperity of the public is promoted.
Public use is not synonymous with public interest. The true criterion by which to
judge of the character of the use is whether the public may enjoy it by right or only
by permission.
PLANTERS PRODUCT INC. v CA
It is only when the charter includes both the vessel and its crew, as in a bareboat or
demise that a common carrier becomes private, at least insofar as the particular
voyage covering the charter-party is concerned. Indubitably, a shipowner in a time or
voyage charter retains possession and control of the ship, although her holds may,
for the moment, be the property of the charterer.
PLANTERS PRODUCTS INC v CA
The period during which private respondent was to observe the degree of diligence
required of it as a public carrier began from the time the cargo was unconditionally
placed in its charge after the vessel's holds were duly inspected and passed scrutiny
by the shipper, up to and until the vessel reached its destination and its hull was
reexamined by the consignee, but prior to unloading.
SPS. TEODORO AND NANETTE PERENA v SPS. TERESITA PHILIPPINE
NICOLAS AND L. ZARATE
The operator of a school bus service is a common carrier in the eyes of the law.
He is bound to observe extraordinary diligence in the conduct of his business. He is
presumed to be negligent when death occurs to a passenger. His liability may include
indemnity for loss of earning capacity even if the deceased passenger may only be
an unemployed high school student at the time of the accident.
It is to be noted that the Civil Code does not limit the liability of the common carrier to
a fixed amount per package. In all matters not regulated by the Civil Code, the rights
and obligations of common carriers are governed by the Code of Commerce and
special laws. Thus, the COGSA supplements the Civil Code by establishing a
provision limiting the carrier’s liability in the absence of a shipper’s declaration of a
higher value in the bill of lading.
In case of claim for loss filed by a consignee or the insurer as subrogee, it is the
arrastre operator that carries the burden of proving compliance with the obligation to
deliver the goods to the appropriate party. It must show that the losses were not due
to its negligence or that of its employees. It must establish that it observed the
required diligence in handling the shipment. Otherwise, it shall be presumed that the
loss was due to its fault. 27 In the same manner, an arrastre operator shall be liable for
damages if the seal and lock of the goods deposited and delivered to it as closed and
sealed, be broken through its fault. Such fault on the part of the arrastre operator is
likewise presumed unless there is proof to the contrary.
When the sources of the obligation upon which plaintiff's cause of action depends is a
negligent act or omission, the burden of proof rests upon plaintiff to prove the
negligence — if he does not his action fails. But when the facts averred show a
contractual undertaking by defendant for the benefit of plaintiff, and it is alleged that
plaintiff has failed or refused to perform the contract, it is not necessary for plaintiff
to specify in his pleadings whether the breach of the contract is due to willful
fault or to negligence on the part of the defendant, or of his servants or agents.
Proof of the contract and of its nonperformance is sufficient prima facie to
warrant a recovery.
The contract of defendant to transport plaintiff carried with it, by implication, the duty
to carry him in safety and to provide safe means of entering and leaving its trains
(civil code, article 1258). That duty, being contractual, was direct and immediate, and
its non-performance could not be excused by proof that the fault was morally
imputable to defendant's servants.
Charter parties are classified as contracts of demise (or bareboat) and affreightment,
which are distinguished as follows: "Under the demise or bareboat charter of the
vessel, the charterer will generally be considered as owner for the voyage or service
stipulated. The charterer mans the vessel with his own people and becomes, in
effect, the owner pro hac vice, subject to liability to others for damages caused by
negligence. To create a demise, the owner of a vessel must completely and
exclusively relinquish possession, command and navigation thereof to the charterer;
anything short of such a complete transfer is a contract of affreightment (time or
voyage charter party) or not a charter party at all." 20 The distinction is significant,
because a demise or bareboat charter indicates a business undertaking that
is private in character. 21 Consequently, the rights and obligations of the parties to a
contract of private carriage are governed principally by their stipulations, not by the
law on common carriers.
Where cargo is, with the owner’s consent, transported on the deck of a sea-going
vessel upon a bill of lading exempting the ship’s company from liability for damage,
the risk of any damage resulting from carriage on deck, such as the damage caused
by rain or the splashing aboard of sea water, must be borne by the owner.
Where the shipper consents to have his goods carried on deck he takes the risks of
any damage or loss sustained as a consequence of their being so carried.
ASIA LIGHTERAGE AND SHIPPING CO. v CA
The definition of common carriers in Article 1732 of the Civil Code makes no
distinction between one whose principal business activity is the carrying of persons or
goods or both, and one who does such carrying only as an ancillary activity. We also
did not distinguish between a person or enterprise offering transportation service on a
regular or scheduled basis and one offering such service on an occasional, episodic
or unscheduled basis. Further, we ruled that Article 1732 does not distinguish
between a carrier offering its services to the general public, and one who offers
services or solicits business only from a narrow segment of the general population.
The test to determine a common carrier is "whether the given undertaking is a part of
the business engaged in by the carrier which he has held out to the general public as
his occupation rather than the quantity or extent of the business transacted."
Common carriers are bound to observe extraordinary diligence in the vigilance over
the goods transported by them. 28 They are presumed to have been at fault or to
have acted negligently if the goods are lost, destroyed or deteriorated. 29 To
overcome the presumption of negligence in the case of loss, destruction or
deterioration of the goods, the common carrier must prove that it exercised
extraordinary diligence. There are, however, exceptions to this rule. Article 1734 of
the Civil Code enumerates the instances when the presumption of negligence does
not attach
Art. 1734. Common carriers are responsible for the loss, destruction, or deterioration
of the goods, unless the same is due to any of the following causes only:
In Article 1753 of the Civil Code, "[t]he law of the country to which the goods are to be
transported shall govern the liability of the common carrier for their loss, destruction
or deterioration."
It must be emphasized that not all instances of bad weather may be categorized as
"storms" or "perils of the sea" within the meaning of the provisions of the Civil Code
and COGSA on common carriers. To be considered absolutory causes under either
statute, bad weather conditions must reach a certain threshold of severity.
The phrase "perils of the sea"- weather that is "so unusual, unexpected and
catastrophic as to be beyond reasonable expectation."
A common carrier is not liable for loss only when (1) the fortuitous event was the only
and proximate cause of the loss and (2) it exercised due diligence to prevent or
minimize the loss.
The liability of a common carrier for the loss of goods may, by stipulation in the bill of
lading, be limited to the value declared by the shipper. On the other hand, the liability
of the insurer is determined by the actual value covered by the insurance policy and
the insurance premiums paid therefor, and not necessarily by the value declared in
the bill of lading.
"Article 1680 of the Civil Code, which considers fire as an extraordinary fortuitous
event refers to leases or rural lands where a reduction of the rent is allowed when
more than one-half of the fruits have been lost due to such event, considering that the
law adopts a protective policy towards agriculture.
"As the peril of fire is not comprehended within the exceptions in Article 1734, supra,
Article 1735 of the Civil Code provides that in all cases other than those mentioned in
Article 1734, the common carrier shall be presumed to have been at fault or to have
acted negligently, unless it proves that it has observed the extraordinary diligence
required by law."
When a fortuitous event occurs, Article 1174 of the Civil Code absolves any party
from any and all liability arising therefrom.
Common carriers, from the nature of their business and for reasons of public policy,
are bound to observe extraordinary diligence in the vigilance over the goods
transported by them.26 Subject to certain exceptions enumerated under Article
173427 of the Civil Code, common carriers are responsible for the loss, destruction, or
deterioration of the goods. The extraordinary responsibility of the common carrier
lasts from the time the goods are unconditionally placed in the possession of, and
received by the carrier for transportation until the same are delivered, actually or
constructively, by the carrier to the consignee, or to the person who has a right to
receive them.
The functions of an arrastre operator involve the handling of cargo deposited on the
wharf or between the establishment of the consignee or shipper and the ship's
tackle.32 Being the custodian of the goods discharged from a vessel, an arrastre
operator's duty is to take good care of the goods and to turn them over to the party
entitled to their possession.
It is settled in maritime law jurisprudence that cargoes while being unloaded generally
remain under the custody of the carrier.
Where the contract of shipment contains a reasonable requirement of giving notice of loss
of or injury to the goods, the giving of such notice is a condition precedent to the action for
loss or injury or the right to enforce the carrier's liability. Such requirement is not an empty
formalism. The fundamental reason or purpose of such a stipulation is not to relieve the
carrier from just liability, but reasonably to inform it that the shipment has been damaged
and that it is charged with liability therefor, and to give it an opportunity to examine the
nature and extent of the injury. This protects the carrier by affording it an opportunity to
make an investigation of a claim while the matter is fresh and easily investigated so as to
safeguard itself from false and fraudulent claims.
>"Extraordinary diligence is that extreme measure of care and caution which
persons of unusual prudence and circumspection use for securing and preserving
their own property or rights."
NEDLLOYD LIJNEN B.V. ROTTERDAM v GLOW LAKS ENTERPRISES INC.
Explicit is the rule under Article 1736 of the Civil Code that the extraordinary
responsibility of the common carrier begins from the time the goods are delivered to
the carrier. This responsibility remains in full force and effect even when they are
temporarily unloaded or stored in transit, unless the shipper or owner exercises the
right of stop page in transitu, and terminates only after the lapse of a reasonable time
for the acceptance, of the goods by the consignee or such other person entitled to
receive them. It was further provided in the same statute that the carrier may be
relieved from the responsibility for loss or damage to the goods upon actual or
constructive delivery of the same by the carrier to the consignee or to the person who
has the right to receive them.
Extraordinary diligence is that extreme care and caution which persons of unusual
prudence and circumspection use for securing or preserving their own property or
rights. This expecting standard imposed on common carriers in contract of carrier of
goods is intended to tilt the scales in favor of the shipper who is at the mercy of the
common carrier once the goods have been lodged for the shipment. 26 Hence, in case
of loss of goods in transit, the common carrier is presumed under the law to have
been in fault or negligent.
The contract of carriage remains in full force and effect even after the delivery of the
goods to the port authorities; the only delivery that releases it from their obligation to
observe extraordinary care is the delivery to the consignee or his agents. Petitioners
could have offered evidence before the trial court to show that they exercised the
highest degree of care and caution even after the goods was turned over to the
custom authorities, by promptly notifying the consignee of its arrival at the P01i of
Cristobal in order to afford them ample opportunity to remove the cargoes from the
port of discharge.
PHILIPPINE CHARTER INSURANCE CORP v UNKNOWN OWNER OF THE
VESSEL M/V NATIONAL HONOR
The statement in the Bill of Lading, that the shipment was in apparent good condition,
is sufficient to sustain a finding of absence of defects in the merchandise. Case law
has it that such statement will create a prima facie presumption only as to the
external condition and not to that not open to inspection.
MARIANO, JR. v CALLEJAS
It is clear that neither the law nor the nature of the business of a transportation
company makes it an insurer of the passenger's safety, but that its liability for
personal injuries sustained by its passenger rests upon its negligence, its failure to
exercise the degree of diligence that the law requires.
Petitioner cannot succeed in his contention that respondents failed to overcome the
presumption of negligence against them. The totality of evidence shows that the
death of petitioner's spouse was caused by the reckless negligence of the driver of
the Isuzu trailer truck which lost its brakes and bumped the Celyrosa Express bus,
owned and operated by respondents. It was shown that before the collision, the
passenger bus was cruising on its rightful lane along the Aguinaldo Highway when
the trailer truck coming from the opposite direction, on full speed, suddenly swerved
and encroached on its lane, and bumped the passenger bus on its left middle portion.
Respondent driver De Borja had every right to expect that the trailer truck coming
from the opposite direction would stay on its proper lane. He was not expected to
know that the trailer truck had lost its brakes. The swerving of the trailer truck was
abrupt and it was running on a fast speed as it was found 500 meters away from the
point of collision.
>The foundation of LRTA’s liability is the contract of carriage and its obligation to
indemnify the victim arises from the breach of that contract by reason of its failure to
exercise the high diligence required of the common carrier. In the discharge of its
commitment to ensure the safety of passengers, a carrier may choose to hire its own
employees or avail itself of the services of an outsider or an independent firm to
undertake the task. In either case, the common carrier is not relieved of its
responsibilities under the contract of carriage.
TIU & LAS PINAS v ARRIESGADO
petitioner Laspiñas’ negligence in driving the bus is apparent in the records. By his
own admission, he had just passed a bridge and was traversing the highway of
Compostela, Cebu at a speed of 40 to 50 kilometers per hour before the collision
occurred. The maximum speed allowed by law on a bridge is only 30 kilometers per
hour.
Under Article 2185 of the Civil Code, a person driving a vehicle is presumed negligent
if at the time of the mishap, he was violating any traffic regulation.
It is undisputed that the respondent and his wife were not safely transported to the
destination agreed upon. In actions for breach of contract, only the existence of such
contract, and the fact that the obligor, in this case the common carrier, failed to
transport his passenger safely to his destination are the matters that need to be
proved.36 This is because under the said contract of carriage, the petitioners assumed
the express obligation to transport the respondent and his wife to their destination
safely and to observe extraordinary diligence with due regard for all
circumstances.37 Any injury suffered by the passengers in the course thereof is
immediately attributable to the negligence of the carrier. 38 Upon the happening of the
accident, the presumption of negligence at once arises, and it becomes the duty of a
common carrier to prove that he observed extraordinary diligence in the care of his
passengers.39 It must be stressed that in requiring the highest possible degree of
diligence from common carriers and in creating a presumption of negligence against
them, the law compels them to curb the recklessness of their drivers.
When Perez slowed down his BTCO bus to permit said passenger to disembark, he
must have known, therefore, that the Biñan bus would overtake the calesa at about
the time when the latter and BTCO bus would probably be on the same line, on
opposite sides of the asphalted portions of the road, and that the space between the
BTCO bus and the "calesa" would not be enough to allow the Biñan bus to go
through. It is true that the driver of the Biñan bus should have slowed down or
stopped, and, hence, was reckless in not doing so; but, he had no especial
obligations toward the passengers of the BTCO unlike Perez whose duty was to
exercise "utmost" or "extraordinary" diligence for their safety. Perez was thus under
obligation to avoid a situation which would be hazardous for his passengers, and,
make their safety dependent upon the diligence of the Biñan driver. Such obligation
becomes more patent when we considered the fact — of which the Court may take
judicial cognizance — that our motor vehicle drivers, particularly those of public
service utilities, have not distinguished themselves for their concern over the safety,
the comfort or the convenience of others.
CALALAS v CA
Consequently, in quasi-delict, the negligence or fault should be clearly established
because it is the basis of the action, whereas in breach of contract, the action can be
prosecuted merely by proving the existence of the contract and the fact that the
obligor, in this case the common carrier, failed to transport his passenger safely to his
destination. In case of death or injuries to passengers, Art. 1756 of the Civil Code
provides that common carriers are presumed to have been at fault or to have acted
negligently unless they prove that they observed extraordinary diligence as defined in
Arts. 1733 and 1755 of the Code. This provision necessarily shifts to the common
carrier the burden of proof.
In the case at bar, upon the happening of the accident, the presumption of negligence
at once arose, and it became the duty of petitioner to prove that he had to observe
extraordinary diligence in the care of his passengers. The fact that Sunga was seated
in an "extension seat" placed her in a peril greater than that to which the other
passengers were exposed. Therefore, not only was petitioner unable to overcome the
presumption of negligence imposed on him for the injury sustained by Sunga, but
also, the evidence shows he was actually negligent in transporting passengers.
It was negligence on the conductor's part to announce the next flag stop when said
stop was still a full three minutes ahead. The proximate cause of the death of the
victims was the premature and erroneous announcement of petitioner' appellant
Briñas. This announcement prompted the victims to stand and proceed to the nearest
exit. Without said announcement, the victims would have been safely seated in their
respective seats when the train jerked as it picked up speed. The connection
between the premature and erroneous announcement of petitioner-appellant and the
deaths of the victims is direct and natural, unbroken by any intervening efficient
causes.
The source of the obligation sought to be enforced in Civil Case No. 5978 is culpa
contractual, not an act or omission punishable by law. We also note from the
appellant's arguments and from the title of the civil case that the party defendant is
the Manila Railroad Company and not petitioner-appellant Briñas Culpa contractual
and an act or omission punishable by law are two distinct sources of obligation.
Common carriers should be given sufficient leeway in assuming that the passengers
they take in will not bring anything that would prove dangerous to himself, as well as
his co-passengers, unless there is something that will indicate that a more stringent
inspection should be made. During the foregoing, both Duplio and Daraoay observed
nothing which would rouse their suspicion that the men were armed or were to carry
out an unlawful activity. With no such indication, there was no need for them to
conduct a more stringent search (i.e., bodily search) on the aforesaid men.
The trial court is not required to make an express finding of the common carrier's fault
or negligence. Even the mere proof of injury relieves the passengers from
establishing the fault or negligence of the carrier or its employees. The presumption
of negligence applies so long as there is evidence showing that: (a) a contract exists
between the passenger and the common carrier; and (b) the injury or death took
place during the existence of such contract. In such event, the burden shifts to the
common carrier to prove its observance of extraordinary diligence, and that an
unforeseen event or force majeure had caused the injury.
The law requires the common carrier to observe the same diligence as the hotel
keepers in case the baggage remains with the passenger; otherwise, extraordinary
diligence must be exercised. Furthermore, the liability of the common carrier attaches
even if the loss or damage to the belongings resulted from the acts of the common
carrier's employees, the only exception being where such loss or damages is due
to force majeure. Actual notification was not necessary to render the petitioner as the
common carrier liable for the lost personal belongings of Sesante. By allowing him to
board the vessel with his belongings without any protest, the petitioner became
sufficiently notified of such belongings. So long as the belongings were brought inside
the premises of the vessel, the petitioner was thereby effectively notified and
consequently duty-bound to observe the required diligence in ensuring the safety of
the belongings during the voyage.