Name: Magbojos, Kristine V.

TOPIC: Common Carrier – Liability in Case of Fortuitous Event (2019)

PROBLEM: LMN, Inc. operates a beach resort in a secluded island off the coast of Puerto
Princesa City, Palawan. It operates three (3) motorized boats to ferry its guests from the city
proper to the island resort and vice-versa. During one rainy morning, the guests were informed
that the ferry services for that day were cancelled due to a storm forecast. In order to appease
the apparent dismay of most of the guests who will miss their flight back to Manila, the boat
captain of one of LMN, Inc.'s motorized boats decided to push through with its trip back to the
city. Shortly after the boat sailed, the storm hit and the winds and waves became stronger,
causing engine trouble to the boat. Unfortunately, the boat capsized and sank, resulting in the
death of one of the passengers, Mr. X. This prompted Mr. X's heirs to file a complaint for
damages against LMN, Inc., which they alleged to be a common carrier. In its defense, LMN,
Inc. maintained that it is not a common carrier because its boats are not available to the general
public but only ferry resort guests and employees.

(a) May LMN, Inc. be considered a common carrier? Explain. (3%)

(b) Assuming LMN, Inc. is a common carrier, may it be absolved from liability on the ground of
fortuitous event? Explain. (2%)

ANSWER:
(a) Yes. In the case of Spouses Cruz v. Sun Holidays, Inc., the Court held that the Civil Code
deliberately refrained from making distinctions on whether the carrying of persons or goods is
the carrier’s principal business, where it is offered on a regular basis, or whether it is offered to
the general public. Sun Holidays is a common carrier. Its ferry services are so intertwined with
its main business as to be properly considered ancillary thereto. The constancy of respondent’s
ferry services in its resort operations is underscored by having its own Coco Beach boats, and
the tour packages it offers, which include the ferry services, may be availed of by the general
public. This Court ruling can also be applied in the present case since LMN, Inc., operates a
beach resort including its ferry services offered to guests as ancilliary to its principal business.
LMN, Inc. is a common carrier.

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(b) No. The elements of a fortuitous event are: (a) the cause of the unforeseen and unexpected
occurrence, or the failure of the debtors to comply with their obligations, must have been
independent of human will; (b) the event that constituted the caso fortuito must have been
impossible to foresee, or if foreseeable, impossible to avoid; (c) the occurrence must have been
such as to render it impossible for the debtors to fulfill their obligation in a normal manner; and
(d) obligor must have been free from any participation in the aggravation of the resulting injury
to the creditor.

To absolve a common carrier from any liability, the fortuitous event must have been the
proximate and only cause of the loss, and it should have exercised due diligence to prevent or
minimize the loss before, during and after the occurrence of the fortuitous event. The
occurrence of the squalls was expected under the weather condition and a storm forecast. The
elements of fortuitous event are not met to absolve LMN, Inc. from liability.