LAWS REGULATING TRANSPORTATION COMPANIES

Law on common carriers

The primary law that governs common carriers is the Civil Code of the Philippines as clearly
implied in Article 1766 thereof which states that “in all matters not regulated by this Code, the
rights and obligations of common carriers shall be govern by the Code of Commence and special
laws.”

Article 1732. Common carriers are persons, corporations, firms or associations engaged in the
business of  carrying or transporting passengers or goods or both, by land, water, or air, for
compensation, offering their services to the public.

Discussion of the law

A common carrier is defined as one holding itself out to the public as engaged in the
transportation of freight or passenger for hire. It is one who is in the business of transporting
goods or persons for hire, as a public utility. A private carrier, in contrast, its not in the business
of transporting public employment but hires out to deliver goods (not passenger) in particular
cases. Both the Civil Code of Commerce give clear-cut divisions between contracts of carriage
of passengers, because the rights and defense in each kind of contracts are different from the
other.

Nature of Contract of Carriage

A contract of transport passengers is quite different in kind and degree from any other
contractual relation, and this is because of the relation which an air carrier sustains with the
public.

Responsibility of Common Carriers

The Law

Article 1733. 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 and for the
safety of the passengers transported by them, according to all the circumstances of each case.

Article 1755. A common carrier is bound to carry the passengers safely as far as human care
and foresight can provide, using the utmost diligence of very cautious persons, with a due
regard for all the circumstances.

Article 1756. In case of death of or injuries to passengers, common carriers are presumed to
have been at fault or to have acted negligently, unless they prove that they observed
extraordinary diligence as prescribed in articles 1733 and 1755.
Article 1757. The responsibility of a common carrier for the safety of passengers as required in
articles 1733 and 1755 cannot be dispensed with or lessened by stipulation, by the posting of
notices, by statements on tickets, or otherwise.

Discussion of laws

 As soon as the passenger puts his foots on the platform, the obligation of extraordinary
diligence of the common carrier begins. The relation of carrier and passenger does not
cease at the moment the passenger alights form the carrier’s vehicle at a place selected by
the carrier at the point of destination, but continues until the passenger has had a
reasonable time or a reasonable opportunity to leave the carrier’s premises.
 A certificate of public convenience is not a requirement in order for a common carrier to
incur liability. Such liability arises from the moment a person or firm acts as a common
carrier, without regard to whether or not such carrier has been granted a certificate of
public convenience or has complied with the requirements of the applicable
implementing regulations.
 The term “extraordinary diligence” has been defined as the standards of care required of
common carrier bringing safely its passengers (and goods) from one place to another.
 In a contract of carriage of passenger, it is the obligation of the common carrier to bring
the passengers safely to the point of destination, if injured, or death occurs, the
presumptions of negligence automatically arises, and the common carrier can be held
liable if he fails to prove extraordinary diligence for the duration of the carriage.

Liabilities of Common Carriers for the Acts of Employees and Strangers

The law

Article 1759. Common carriers are liable for the death of or injuries to passengers through the
negligence or willful acts of the former’s employees, although such employees may have acted
beyond the scope of their authority or in violation of the orders of the common carriers.

This liability of the common carriers does not cease upon proof that they exercised all the diligence
of a good father of a family in the selection and supervision of their employees.

Discussion of the law

For the bus company, due diligence in selection of employees is just satisfied by finding that the
applicant possessed a professional driver’s license. The employer should also examine the applicant
for his qualifications, experiences and record of service. Due diligence in supervision, on the other
hand, requires the formulation of rules and regulations for the guidance of employees and issuance
of proper instruction as well as actual implementation of monitoring of consistent compliance with the
rules. For a shipping company , the vessel must be considered seaworthy adequately equipped for
the voyage and manned with a sufficient number of competent officers and crew.
Enforcement of liability of common carriers

The liability of common carriers can be enforced on the following causes of action:

(1) In case of death or injury caused to passengers, the victim may file a case of breach of
contract of carriage or culpa contractual against the honor of the common carrier.

(2) In case of death or injury caused to stranger or pedestrian, the victim may file a criminal
complaint against the driver of the common carrier for reckless imprudence resulting in
homicide and damage to property. The victim may also file a civil suit against the common
carrier and its driven on the ground of culpa aquiliana or quasi-delict.