T r a nspo Mi dt e r m s R e c i t s Atty.

C ap ana s

8/13/18 — EH 501 ....................................................................1 Perfected — already attempting to board the conveyances.

8/17/18 — EH 403 ....................................................................2
8/20/18 — EH 501 ....................................................................5 10.Are you talking about the Case of Dangwa?
8/24/18 — EH 403 ....................................................................6
11.What are the types of contracts of carriage?
a) Carriage of passengers
Caveat: Some are my own answers. Do not entirely rely if you
know the answer. Thanks b) Carriage of goods

12.Who are the parties to a contract of carriage?

8/13/18 — EH 501 a) Carriage of passengers
A. Common carrier
1.What is a contract of transportation?
B. Passenger
There is a contract of transportation when a person
obligates himself to transport persons or property from
one place to another for a consideration. b) Carriage of goods
A. Common Carrier
2.Is it the same as contract of carriage? B. Shipper
Yes.
A contract of carriage is one whereby a certain person or 13.Why did you include the consignee?
group of persons obligate themselves to transport The consignee is the person to whom the goods are to be
persons, things, or news from one place to another for a delivered.
fixed price.
14.When is a consignee bound by the contract?
3.What do you mean when you say “hold itself out”? a) Signatory to the contract
A common carrier is one that holds itself out as ready to b) Relationship of agency between consignee and
engage in the transportation of goods for hire as a public shipper/consignor
employment and not as a casual occupation. c) Unequivocal acceptance of the bill of lading
Hold itself out — act as if or assumes the appearance of. delivered to the consignee, with full knowledge of its
contents
4.Give an example of a contract of private carriage? d) Availment of the stipulation pour autrui, i.e. when
Bareboat or charter by demise the consignee, a third person, demands before the
carrier the delivery of the goods
5.What is a bareboat or charter by demise?
A bareboat or demise charter is where the charterer 15.Give an example.
mans the vessel with his own people and becomes, in I ordered a wood from Mr. Kong. He is from Butuan and
effect, the owner of the voyage or service stipulated. I’m in Cebu.
Charterer becomes owner pro hac vice, who is able to He submits the bill of lading and then I received a copy of
others for damages caused by negligence. it. He then sends the woods through MJ shipping.
6.What is a voyage charter? a) How did the consignee accept?
A voyage charter is when the ship is leased for a
particular voyage or single voyage. Here, the carrier is b) Where did the consignee go to?
answerable to the loss of the goods received for
transportation.
16.Consignee went to carrier and demanded the release of the
7.Is it possible for a charterer to become a common carrier?
goods. Now, the consignee found that the goods were
Yes. damaged. He refused to accept the goods. Is the
consignee bound to the contract?
8.How is a contract of carriage perfected?
He is bound.
A contract to carry is perfected by mere consent while a
Demand — stipulation pour autrui.
contract of carriage is a perfected when the facilities of
the carrier are actually used.
17.The consignee did not go the carrier and there was another
person who took the goods who stored it in a warehouse
a) Bus — already attempting to board the conveyances and thereafter delivered it to the consignee. The consignee
b) Train — when they purchased ticket and present refused to accept the goods because he did not want to
himself at the proper place and in a proper manner pay. Is the consignee bound to the contract?
for transformation Qualify if he accepted the bill of lading.
c) Aircraft — meeting of minds with respect to the If he did not accept, he is not bound.
subject matter and consideration But if he accepted, then he is bound.
- checked in at the departure counter, passed
through customs and immigration, boarded the 18.If the consignee just said to leave the goods and he’ll look
shuttle bus, proceeded to the ramp, baggage at it later. Is he bound by the contract?
loaded Qualify if he accepted the bill of lading.
9.Give an example. 19.Should a consignee manifest his intention not to accept the
a) What is the offer? goods in order to be considered not a party?
b) Who made the offer? Not necessarily because if he does not fall under the
c) How was the offer perfected? circumstances for a consignee to be bound, then he will
d) Specify details of when the contract was perfected not bound.

20.Is contract of carriage the same as contract of towage?

I was standing in front of the law building and then a jeepney ● No. In towage, one vessel is hired to bring another
stopped in front of me. I then boarded the jeepney. vessel to another place.

Offer — to ride the jeep; considered as a continuing offer rule 21.Is contract of carriage the same as arrastre?
Who made the offer — the jeepney driver ● No. Arrastre refers to hauling of cargo. It is the
Perfected — attempted to board the jeep handling of cargo on the wharf or between the
establishment of the consignee or shipper and the
ship’s tackle. The responsiblity of the arrastre
Continuing offer rule — duty of the drivers to stop their operator lasts until the delivery of the cargo to the
conveyances for a reasonable length of time in order to consignee.
afford passengers an opportunity to board and enter

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T r a nspo Mi dt e r m s R e c i t s Atty. C ap ana s

22.Is contract of carriage the same as stevedore?
● No. Stevedoring refers to the handling of the cargo
in the holds of the vessel or between the ship’s
tackle and the holds of the vessel. The
responsibility of the stevedore ends upon the
loading and stowing of the cargo in the vessel.
23.What do you understand about boundary system?
● It is when a l
24.Who are the parties in a boundary system?
a) Lessor - Owner of the vehicle
b) Lessee - Can be the driver himself or an operator
who hires drivers
25.Give an example.
26.Does the registered owner rule apply to a boundary
system?
● Yes.
27.What is the registered owner rule?
● The person who is the registered owner of a vehicle
is liable for any damage caused by the negligent
operation of the vehicle although the same was
already sold or conveyed to another person at the
time of the accident.
(fill in the details in your example)
13.Liable even if you were not the one driving?
Yes
14.Owner based on registration papers, but you sold that bus.
You were the owner based on papers, but since you love
the bus, you rode the bus by yourself. If an accident
happen, can the victims go after you?
Still liable.
15.What is the protection on the part of the one who
purchased the bus?
16.What if it was only leased?
17.Difference between common carrier and a private carrier?
Common carrier — persons, corporations, firms or
associations engaged in the business of transporting
passengers or goods or both, by land, water, or air, for
compensation, offering their services to the public.
Private carrier — a special agreement and the carrier
does not hold himself out to carry goods for the general
public;
- undertaking is a single transaction, not a part of a
general business or occupation

18.What is the true test to determine whether the carrier is

8/17/18 — EH 403 common or private?
True test: carriage of passengers or goods, provided it
Contract of Transportation has space, for all who opt to avail themselves of it
1) Carriage of passengers — common carrier & passenger transportation service for a fee
a. Contract to carry
b. Contract of carriage 19.Is a freight forwarder a common carrier?
Yes.
2) Carriage of goods — shipper & carrier 20.Tugboat?
cannot be considered a common carrier
1.What is a contract of carriage? 21.What about a travel agent?
A contract of carriage is one whereby a certain person or Not common carrier. Service.
group of persons obligate themselves to transport
Qualify if the engaged in transportation service.
persons, things, or news from one place to another for a
fixed price.
22.What about owner of a beach? Can he be considered a
common carrier?
2.Who is that person who transport?
Qualify if the engaged in transportation service like tours.
Common carrier
23.My bus?
3.Who is the person to be transported?
Common
Passenger
24.Customs broker?
4.Who is a common carrier?
Common
Persons, corporations, firms or associations engaged in
the business of transporting passengers or goods or
25.Arrastre operator?
both, by land, water, or air, for compensation, offering
their services to the public. Not common

5.What do you mean available for public? 26.What does the arrastre do?

6.So if the person who owns a school bus and would only cater
to students in San Carlos, then the owner is not a common
carrier?
It i s a common carrier.
7.What is your basis?
In the book. Case of De Guzman (wala ni gi answer)
8.What is the meaning of regularity?
27.What laws will govern if it is from Hong Kong to Cebu?
Philippines — Law of the destination.
28.What if it sank while it was still outside Philippines, what
law will govern?
Still Philippines
29.If it is an international air carriage?
Warsaw (but not anymore, see discussion below)

9.What if the owner does not have any permit? Would you 30.Who are parties of contract of transportation involving
change the answer? goods?
No. A certificate of public convenience is not a requisite Carriage of goods
for the incurring of liability under the civil code. 1) Common Carrier
2) Shipper
10.Would the registered owner apply to the owner of the
school bus? 31.In passengers?
Registered owner rule Carriage of passengers
1) Common carrier
11.How does it apply to the school bus?
2) Passenger
(give example)

12.Who owns the school bus?

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T r a nspo Mi dt e r m s R e c i t s Atty. C ap ana s

Note: Consignee is NOT immediately a party to the

contract of carriage of passengers. He has to accept. ✏ Who are the common carriers that we thought of?
1) LBC
32.Does a consignee sign the bill of lading?
2) Kwarta padala,
He may sign the bill of lading
3) Customs broker,
33.Does a consignee have any participation in obtaining a bill 4) Owner of a school bus,
of lading from the common carrier? 5) Motorcycle used for habal2,
6) Pipeline operator,
34.What about the passenger, does he have any preparation in
7) Freight forwarder
obtaining a ticket?

35.How can a consignee be a party to the carriage of goods?
36.If the transportation is not for a fee, will you consider the
carrier a common?
Yes.
37.Have you seen the bus of the Robinsons Galleria? Is it a
common carrier?
Yes
38.What about if there is a charter party?
Charter-party — a contract by which an entire ship, or
some principal part thereof, is let by the owner to
another person for a specified time or use;
39.Who are the parties in a charter party?
1) Shipper
2) Charterer
40.Effect of the owner of affreightment to the owner?
41.The boundary system, is it a charter-party?
No. Charter-party is only applicable to ships.
Charter-party — a concept in maritime law
Boundary system — applies to land transportation
School bus — footnote there is a book of Agbayani that he was
not common but SC pronounced that its a common carrier
✏ Who are private carriers?
1) Case of Valenzuela hardwood — he was a private carrier
and it was not contested
2) Case of GP Sarmiento — only caters to one client; no
holding outside to the public; regardless of how many
transactions
3) Case of National Steele Corp — owner of the trumping
service was a private carrier; with respect to SC, there
was no justification; a mere obiter dictum. Issue is not
whether carrier is common or private, not the character
4) Home insurance — xx
5) Planters products — you cannot anymore use home
insurance as your basis that carrier is private
✏ What about foreign vessels transporting goods from foreign
port to the Philippines?
⁍ Foreign vessels now, without need of any permission
from marina, they can transport to any port in
Philippines.
⁍ They are NOT common carriers because they were
declared as such by law.
⁍ However, authors did not say if they were private
carriers.

(Discussion)
It is possible that a carrier may not be a common and not a
private carrier. It may not be a contract of transportation in
the eyes of Philippine law.

✏ Example: If there is any damage, do you think the laws on

If you will be asked about charter party, it is stated in Planters transportation law will apply?
Products. ⁍ IDTS. Maybe in the civil code but not transportation. In
the contract of bill of lading. Parties have the freedom
Does a charter party convert or transform into a common to stipulate.
carrier?
Sir’s Opinion: (put it in your head but not answer) Implication if carrier is common or private:
1) Governing law
SC talks about charter party, types and how it affects on the 2) Diligence
nature, it is clear that the common carrier is the shipowner, 3) Presumption
not the charterer. 4) Liability

✏ Is it possible that you will have two common carrier in a Common — civil code & contract of transportation
charter party?
Private — contract of the parties
⁍ Yes.
⁍ Shipowner is common carrier — holds itself out in the
public with regards to leasing the vessel IMAGINE THIS IS A SHIP. Tackle - side of the ship
MV CAPANAS ARRASTRE
✏ Is it possible in a contract of demise, the common carrier as transfer from consignee to the dock area
stated in the cases is converted in a private carrier?
⁍ But who is converted into a private carrier? It is the transfer of crates from
shipowner. ship to here consignee
⁍ By then, the shipowner relinquished its functions, STEVEDORE
control over the vessel.

You have a carrier, which is the charterer, using the vessel. He

may become a common carrier if he also holds himself out
to the public to lease the vehicle.

You do not have to own the vessel to be a common carrier

In so far as common carriage is concerned, whether common
or private, consider if that person either acted (actual, by the Case of Cebu Salvage — one of the defenses, not the owner
use of facility) or holds itself to the public, the public has the of the vessel
right to enter into a contract with that person. Case of Leamer — lease ang barge.
In the first place, it was the person who first made the
indication.

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SC was consistent that you DO NOT HAVE TO OWN to be

considered a common carrier.
Acted or held itself out to the public.
Owner of robinsons shuttle bus — common carrier
Even if it is gratuitous carriage, persons inside is still
considered a passenger.
Relevance of boundary system vs registered owner rule
If there is a passenger who suffered damage or injury in the
course of transportation, does the registered owner rule
apply? The injured is the passenger of the PUJ?
Kabit system
Grab
What about grab? If passenger was injured? Registered owner.
Check if who is the owner of the vehicle.
Use the hearing — there was an admission by the grab that
they are common carrier
Theme parks
Owner of disneyland etc, in the US they are considered
common carrier. But in our setting, they are not many cases
filed in the Philippines. So we refer to the cases in the US. In
effect, it is common carrier.
There are only small instances where the court pronounced
private carriers.
Note: Do not refer jeepneys or taxis as common carrier — refer
the PERSON.
Consignee; Implications
1) real party in interest
2) bound by the contract
- bound — contract of bill of lading; consignee cannot
question that stipulation are in fine prints or contract
of adhesion
- in bills of lading and normal contract of transportation,
there is a stipulation limiting the liability of the carriers
Governing laws
Overland — land transportation
Coastwise — shipping
Implications if the person is a passenger
1) rights in favor of the person;
2) laws involving transpo will apply
Tugboat
Tugboat — not same as common carrier
- Except for one case (mentioned in the book)
Conductor of the jeep — exercise extraordinary diligence
• Capalaran bus lines — diligence required of a common
carrier does not only pertain to passengers, it also
includes third parties, the public, etc.
• Philippine airlines vs ca — pilot airplane that overshot the
runway and 1 of the co-pilots was injured — degree of
diligence applies also to the employees of the common
carrier
What is the implication?
They may also be considered as passengers. But it is also
possible that they are not considered passengers but the
degree of diligence is the same.
But for sir: Not passengers but same degree of diligence
In the relationship of lessee and register owner
Extent of liability is joint and solidary.
In filing a case, sometimes you have to choose which one is
easier to prove.
Example:
A leased it to B.
B is operating.
C is the driver of B.
If a passenger is injured by the reckless driving of C, who do
you sue?
• A — You cannot sue A. You do not have a contract with A.
• B — it was B who held himself out to the public; he is the
common carrier — Contract
• C — negligence & delict
If there is a contract of carriage, then you law what law will
govern, and one of the laws is presumption of negligence.
You don’t prove that the person was negligent because it is
presumed. The moment the person is injured and goods are
lost, there arises the presumption of negligence.

Place of destination — will govern Dangwa & Continuing Offer Rule

Sir does not believe in the case of Dangwa and the continuing
International air transportation offer rule. Case to case basis.
Primary governing law is MC99 (Montreal Convention in 1999)
Philippines just ratified so no cases yet.
Sir placed warsaw convention because there are similar
provisions and some cases are still applicable.

Sir emailed to ICAO (international organization regarding air

transportation) and asked MC99 is effective in the
Philippines and he got saying it is effective.

Bar exam questions

1) Question on stowaway
2) Person who has a holder of a free pass issued by the
company. No actual fair paid. Question is whether that
person is a passenger
3) Mistress of the driver who was always at the side of the
driver at every transportation of the jeepney, on whether
she was a passenger
4) Robber who was inside the jeepney is a passenger
- paid the fair and not really to rob, he is considered a
passenger.
- his primary intention was to rob — still considered
If
passenger
- determining factor — INTENT TO PAY; regardless of
other intention, but does he have intention to pay,
although it is difficult

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T r a nspo Mi dt e r m s R e c i t s
8/20/18 — EH 501
By: Leana
Note: Atty asked for volunteers. If none, he will shuffle but oks
ra mo decline if matawag.
1.What is the obligation to exercise extraordinary diligence?
Art 1733, 1755.
2.When does it start?
Qualify if goods or passengers.
3.When is the carrier in control of goods? How is that
manifested?
When it is placed unconditionally in his possession such
that the carrier has entire control of the goods and the
delivery to him was without any qualifications.
I think it is manifested when the carrier, upon delivery of
the goods immediately commenced the loading of the
goods for transportation
4.If passengers? When does diligence start?
Qualify if train, land, sea.
5.What if common carrier does not issue a ticket, when does
the diligence commence?
AS to contract to carry passengers issuance of a ticket is
not necessary. Extraordinary diligence occurs when the
person has placed himself under the are of the common
carrier or his employees.
6.When is a passenger considered a passenger?
Depends again if train, bus.
7.Who/what is a passenger?
A person who travels through public conveyance by
virtue of a contract express or implied, with the carrier
being entitled to a fare.
8.Is a holder of a free pass a passenger?
Yes, the fact that the person travels for free doesn’t not
make him not a passenger. Under the Civil Code, a
persons is still being referred to as a passenger despite
traveling for free.
9.What if the driver allowed a person to accompany a
passenger, is he a passenger?
By the definition, such person cannot be considered as a
passenger because his intention was not to travel but to
accompany. However, that fact that such person is not a
passenger, the extraordinary responsibility still applies
as a carrier’s responsibility extends to third persons such
as employees of the carrier.
10.In a jeep, the wife of the driver, the one collecting the fares,
is she a passenger? Is there transportation there?
(Libog ni sya na part. Classmate said she is a complement
to the driver. Atty asked what's the diff between
complement and passenger. Soo not sure.)
I would answer the same as above #9
11.Example?
Classmate: a person flagged down a jeep. The jeep
slowed down and came to a stop. The flagging down
shows intent to become a passenger.
12.When does the diligence start in that case?
Diligence started when there was meeting of the minds
of the parties e.g the palace of destination
13.What should the driver do to prevent peril?
He should stop his conveyance for a reasonable amount
of time
14.When you flagged down the jeepney, were you at the
designated jeepney stop?
??
15.If you are not at the designated stop, does the carrier need
to exercise such extraordinary diligence?
Atty. C ap ana s
Atty: diba in a case where the carrier does not follow the
traffic rules, it means that it is negligence, meaning did not
exercise extraordinary diligence.
(Cite cases regarding overspeeding, illegal overtaking — the
carrier is negligent bec did not follow traffic rules) the
violation itself shows that it failed its obligation.
So this means then that jeepneys who stop at places not
designated for stops, it is already shown that it is negligent.
Instances when court found traffic rules were violated
1) Violation of Section 37 requiring motorist to drive on the
right side of the road and providing rules on overtaking
2) Speeding in violation of law providing for restriction on
speed
3) Speeding in an intersection
4) A vehicle’s failure to signal while making the U-turn
5) The driver escaped and abandoned the victims and his
truck
16.If carriage of goods by a vessel, the goods were not yet
placed in the vessel (like still transporting or in the process
of putting the goods on the vessel) is there a need for the
diligence?
Yes bec the shipper already lost control and possession.
So carrier is bound to exercise due diligence.
17.Are there 2 contracts of carriage? The one transporting or
putting the goods to the vessel and the carrier itself?
No. There is only one.
18.Who is liable when in that process, there is loss or damage
to the goods?
Where the stevedore as placing the goods and the
goods were damaged it is the liability of the carrier for
the extraordinary responsibility already started when the
goods were placed in its hands
19.Can common carriers refuse to accept?
Yes there are valid grounds.
20.So you mean to say that carriers can discriminate?
Gen rule, cannot discriminate. Expn, valid reasons.
21.Example, when you ride a taxi, and when you say your
destination and it is far, the driver will refuse. Is that
discrimination? Or violation? Liable?
Yes. the distance of the destination is not a valid reason
to discriminate.
22.Can you force the driver?
i cannot. but he can be penalized if reported
23.What if during the course of transpo, the engine of taxi
stopped and cannot be repaired anymore. So the taxi was
pulled by another taxi to the garage. Is there no diligence?
No. It would have been averted. There is no diligence
because there is an implied warranty of roadworthiness.
24.Even if there was regular maintenance?
(Classmate: Still no due diligence bec it wouldn't have
happened even with the maintenance)
25.If tire blowout?
No due diligence. Not a fortuitous event. Still liable.
26.If you are the lawyer of the carrier (blowout) how would you
defend?
Classmate: Show evidences of proper and due
maintenance. That tires were new and high quality. That
there were other proximate causes of the blowout like
a nail on the road.
27.Would proof of any one of the circumstances suffice?
No.
28.What if the driver's license expired bec he has no money. Is
that due diligence?
No. Bec flimsy excuse. You can always provide for
arrangements for renewal.
29.What are the obligations of carrier?
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T r a nspo Mi dt e r m s R e c i t s
To transport the goods or passenger safely to the agreed
destination
30.When is the carrier obligated to deliver the goods to their
destination?
Possession and control given to carrier.
31.When should the carrier deliver?
If there is agreement, then kana.
If none, reasonable time.
32.If you were a carrier, would you want a time stipulated?
I think yes so that you would know when the carrier may
be liable if there is delay.
33.What if there was a stipulation that the carrier does not
warrant that the goods shall be delivered on time. Valid?
(Not sure if yes or no basta reasonable time.)
34.To whom must delivery be made?
Consignee or one who has right to receive.
35.If given to person not mentioned above?
Liable.
36.If goods are placed in the customs warehouse? Liable?
Cite case bec sir asked for legal basis.
General rule: still liable
— Exception: when stipulated
37.Can the parties stipulate that the carrier must not exercise
due diligence? In what instances?
No.
38.So if you ride a jeepney, the driver will approach you and
give you a piece of paper stating that it should not exercise
due diligence. Valid?
No.
39.There are taxi units that have notice that they will not be
liable for the baggage or things brought inside the taxi.
Valid?
Rules of necessary deposits.
40.What if the passenger left a bag, the driver kept the bag to
himself. What is the obligation of the driver with regard to
his obligation to exercise no diligence?
Carrier responsible for loss of things. Caused by his
employees. So responsible.
41.Is the bag there considered hand-carried? Or checked in?
Not sure but. if sud sa car hand carry? if sud sa baggie sa
luyo checked in
42.What is the rule if hand-carried? If checked in?
hand carried rules on deposit, checked in kay kata rules
on extraordinary diligence on the vigilance of goods na
rules
8/24/18 — EH 403
Got called: Dela Cruz, Gabunada, Ke-e
By Marla
1. Are you familiar with a trip involving fast craft? If not,
airplane?
2. From what place?
3. What airline did you use?
4. With respect to time of departure and time of arrival, what
do these companies tell you?
5. Is this stated in the boarding pass?
6. For example, your estimated time of departure is 9 AM, but
you weren’t able to fly for many hours, do you have a cause
of action against the airline?
Atty. C ap ana s
7. What is the obligation of the carrier in that situation?
8. What do you mean by “reasonable” time?
9. Is a delay of 8 hours reasonable?
10. Is it possible for the common carrier to fix the time of
departure and arrival?
11. If you were a common carrier’s lawyer, would you
recommend time fixing?
12. What if there is a justifiable reason for delay?
13. Is there a difference if it is a fixed period and an estimated
time, insofar as effect to the common carrier is concerned?
15. What happens is a flight is stopped by force majeure or a
fortuitous event?
14. Give one obligation of a common carrier?
A. Accept passengers and goods without discrimination
15. What do you mean by that?
16. What about school buses? Are they discriminating against
the public?
17. Are USC school buses offered to outsiders?
18. With respect to goods, what do you mean by that? What
do you mean by “any” goods?
19. How do we know the capability of a boat in connection to
carrying goods?
20. Is a common carrier allowed to discriminate according to
capacity?
21. Are vessels allowed to accommodate cargo to be placed
on deck?
22. The moment a carrier accepts goods/passengers, what is
the duty of the common carrier?
23. Do you have an example in mind on HOW a common
carrier exercises extraordinary diligence?
24. How is “foresight” manifested?
25. Is the presentation of a certificate of drydocking enough to
prove that the common carrier exercised extraordinary
diligence?
26. What do you mean by good condition?
27. What happens if the engine of a ship stops in the middle of
the voyage, does this mean that the common carrier has not
exercised extraordinary diligence?
28. If there is negligence, how can you prove extraordinary
diligence?
29. What happens if a jeepney’s tire exploded, causing injuries.
If you were the lawyer of the jeepney company, how would
you prove extraordinary diligence?
A: I will argue that the jeepney driver slowed down when he
noticed the blown out tire…
Atty: If I was the lawyer of the plaintiff, I would argue that the
jeepney driver should not have slowed down. Rather, he
should have stopped entirely.
30. Let’s talk about inspection. If conductors of buses don’t
inspect goods, is the carrier guilty of not exercising
extraordinary diligence?
31. Is there a presumption with respect to goods?
32. How can you tell if goods are suspicious?
33. Is a driver/conductor allowed to ask about the contents?
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34. What is the implication of the word “may”?
35. Assuming that the physical aspect of the goods looks
suspicious, may the driver refuse acceptance of the goods?
36. If the goods look obviously suspicious, does the driver
need to ask?
37. Ask about what?
38. At what point can the driver/conductor insist on
inspection?
39. Is the rule different with airplanes?
40. Who inspects you, the common carrier or the airport
authority/management?
41. Is the airport management an agent of the common
carrier?
42. When transporting objects via LBC, do the staff ask you
about the thing and its price?
43. Is this question part of extraordinary diligence?
44. In the case of carriers issuing tickets (ex. PAL office in
Gorordo), upon the issuance of the ticket, what is the duty of
the staff of PAL?
45. What happens if the staff fails to do their duty?
Atty: Don’t worry about passenger’s duty. We’ll cover that next
week. ☺
By Sandee
1.Are you familiar with a trip involving fast craft? Airplane?
From what place to what place? What airline?
… 28.Does the driver have the option to ask?
2.With respect to time of departure and time of arrival, what
do these companies tell you?
Already given
3.Is it stated in the boarding pass?
Yes
4.If for example your ETD is 9AM but you were not able to fly.
It was delayed for so many hours. Do you have any cause
of action?
Qualify if due to force majeure or due to the fault of the
carrier.
5.Why?
6.What is the obligation there of the carrier?
7.Is it possible for the common carrier to fix the time of ETD
and ETA?
Yes
8.If you were the lawyer of the CC, would you suggest that?
9.So what is the effect?
10.And what is the liability?
11.If it is an agreement as to time (fixed), are you still liable
even if it is delayed due to force majeure?
Yes.
12.Give 1 obligation:
Accept passenger or goods without discrimination
13.What do you mean by that?
14.What do you mean by any goods? It would be better if you
illustrate.
Jeepney
15.What about if it is a school bus of USC?
Atty. C ap ana s
USC bus — common carrier
16.With respect to goods? What do you mean by that?
17.Is a common carrier allowed to discriminate according to
capacity?
18.Are vessels allowed to accept cargo on deck?
19.What is the duty of the carrier upon acceptance?
Exercise extraordinary diligence
20.Foresight, how is that manifested?
21.Is the presentation of certificate of dry-docking means that
he exercised extraordinary diligence?
22.In a jeepney, there is a tire blowout and it bumped another
vehicle. Carrier was sued for breach of contract. You were
the lawyer to defend the carrier, how would you prove
extraordinary diligence?
Showing that the tires were newly replaced and etc etc
23.I will raise the argument that since something wrong with
not only the tire, but also with the negligence of the driver
because he should have stopped.
24.Inspection: if conductors and drivers of our buses would
not inspect the load inside the bus, is he exercising
extraordinary diligence?
25.How do we know if it is suspicious?
Apparent. What they see.
26.Is the conductor allowed to ask what are the contents?
Yes.
27.What is the implication of the word “may”
Yes. He may or may not ask.
29.If it is apparent that the goods are (something bad), the
carrier was suspicious regarding the goods, can the carrier
not accept the goods?
30.In LBC, they ask what’s the content, is the question part of
the extraordinary diligence?
31.So if the staff will not ask, there is a violation?
(Discussion)
SPECIFIED TIME
Specified time — If time is fixed, regardless of the cause, the
carrier is liable for the delay. (Case of Saludo)
INSPECTION
With respect to passenger — there is a presumption that
passengers have a sense of responsibility and that they have
regard for the safety of other passengers.
Implication: No duty to inspect passengers
Is this still the prevailing jurisprudence? Sadly, yes
In the case of Nocum, when it comes to passengers, there is
no duty to inspect.
What about baggage?
Here, inquiry MAY be made, but it is qualified — when it is not
outwardly perceptible.
Saludo — in airplane, carrier has the duty to make inquiry.
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T r a nspo Mi dt e r m s R e c i t s
In LBC couriers, apply the case of Saludo — according to atty,
can be same as in an airplane, has the duty to make inquiry.
Inquiry and shippers marks as to contents may be done.
Staff must inquire as to the contents and staff has the right to
rely on what you represented, because the shipper has to
sign.
Case of Saludo — the carrier has the right to accept shipper’s
marks as to the contents of the package offered for the
transportation and is not bound to inquire particularly
about them in order to take advantage of false classification
and where the shipper expressly represents the contents of
the package to be designated the character, it is not the
duty of the carrier to ask for a repetition of the statement
nor disbelieve it and open the box to see it for itself
What about if the driver will inquire? Does that mean that
the result of the answer of the passenger?
Answer is No.
Case of Nocum — When there are sufficient indication that
the representations of the passenger regarding the nature of
his baggage may not be true, in the interest of the common
safety of all, the assistance of the police authorities may
be solicited, not necessarily to force the passenger to open
his baggage, but to conduct the needed investigation
consistent with rules of propriety and the constitutional
rights of the passenger.
No indication that the carrier with respect to baggage, cannot
inspect.
Inquiry can be done, and then ask for police assistance.
If you compare it to Saludo, not the duty of the carrier to ask
for a repetition of the statement nor disbelieve it and open
the box to see it for itself.
Is the carrier allowed to discriminate in acceptance? Yes.
What is not allowed is unreasonable discrimination.
In cases of inspection in carriage by sea — apply the case of
Nocum.
ACCEPTANCE
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:
1) Flood, storm, earthquake, lightning, or other natural
disaster or calamity
2) Act of the public enemy in war, whether international or
civil
3) Act or omission of the shipper or owner of the goods
4) The character of the goods or defects in the packing or in
the containers
5) Order or act of competent public authority
As long as those responsible of this would do the task,
everything is in order.
Example, if you bring an animal, you will not be allowed if you
do not have permit.
Once carrier accepts that, the carrier is bound to exercise DUE
DILIGENCE to lessen the loss.
It’s not all the time that the carrier is required to exercise
extraordinary diligence.
Example for breach of contract, if the vessel sank and possible
defense would be force majeure, carrier does not have only
prove the cause of the typhoon, he has to prove what he has
done BEFORE, DURING and AFTER. It’s part of proving
extraordinary diligence. But by law, it is ordinary diligence.
Case of Macam, not simply because that party was the
notified party. Law is express that it is delivery to consignee.
Atty. C ap ana s
But there is another person where delivery can be considered
as complete — person who is entitled to receive the goods.
Even if that party was only a notify party but he is not a
consignee, but it was considered complete.
Case of Compania Maritima — delivery to the lighter vessels
was considered acceptance and therefore carrier has duty to
exercise extraordinary diligence.
What made the court conclude? Also based on the facts.
There was telex, send to the lighters, then master and crew
of the lighters were also crews of the carrier.
It is not all the time, it has to depend on the facts.
Case of Ned Lloyd —
Case of Sulpicio — The carrier would be liable if the damage
to the packaging, which resulted in the cargo’s unfitness for
transport, was made when the same was in the custody of
the carrier.
Case of Servando —
Who hires the arrastre? Depends on who he authorized.
Arrastre is the third party. Not the consignee. Part of the
process of the port.
DELIVERY
Case of delsan and westwind — DELIVERY
Delsan — oil (liquid)
Delsan was transportation of oil from the vessel to depot.
No deliver because not all of the oil was transferred to the
depot when the back flow happened.
When the goods would be in liquid form, there is no complete
deliver unless EVERYTHING is completely delivered.
Westwind — Containers and skids (solid)
Containers and skids suffered damage and it was not yet
delivered to the consignee. The container’s skids was only
covered by one bill of lading. If there are 9 containers and 1
was not delivered, there is no complete deliveries. Coverage
of only 1 bill of lading.
But if there was 1 bill of lading for each container, then each
container is completed.
EXTRAORDINARY DILIGENCE
How do you prove extraordinary diligence if it is transportation
by sea?
Seaworthiness of the vessel, cargoworthiness, proper
manning, storage,
Presentation of certificates of dry-docking will not suffice.
Seaworthiness — actual capacity.
Is there a need to prove negligence? No (but it is mentioned
by law)
But in actual practice, there is another negligence you have to
prove.
If you are the plaintiff in a case, you don’t prove negligence for
breach of contract because you only have to establish there
was a contract and there was breach. failure to transport.
Another kind of negligence the plaintiff needs to prove —
when carrier availed of the defense of extraordinary
diligence.
For plaintiff, how do you dispute? Prove that the carrier is
guilty of negligence. That is the point of the cases.
Case of Juntilla — Driver was driving the jeepney very fast,
carrier cannot invoke extraordinary diligence.
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T r a nspo Mi dt e r m s R e c i t s Atty. C ap ana s

Proving negligence in order to dispute the extraordinary

diligence. Grab
When is there perfection? Upon the confirmation
Other cases: Can you sue grab and not the owner of the vehicle?
1) Overload
2) Cargo placed on deck Each owner is given an individual CPC (certificate of public
3) Acetylene cylinder place in common area convenience). Aside from business permit, BIR record,
4) Overspeeding payment of taxes, CPC will be issued in favor of that owner.
5) improper execution of overtaking The one who will contract is the owner of the vehicle.
Grab will be considered service provider
Do not say that the carrier committed negligence and that
there is presumption of negligence. Regulation is the indicator.

If you are the carrier, how do you prove extraordinary What if nay lain driver mu drive sa grab aside sa owner?
diligence? Prove all reasonable means. 1 driver is allowed to substitute. But the name of the CPC will
be the name of the owner.
In actual practice, even if certificate of dry-docking is not
sufficient, but when you present such taken with other
defenses, it would be considered as one evidence to prove
extraordinary diligence.

Contents of the defense: crew, qualified, trained, cargos were

placed properly in the holds, equipments, complete life
jackets, etc. doors were not locked

Do not ever think that since there was a case that certificate of
dry-docking was not enough evidence that it could not be
presented, you just have to present MORE evidences.

Tire-blowout — not sufficient that the tire was new, you have to
prove what caused the blowing of the tire.

What is the basis of saying that you have to use all reasonable
means?
1) Case of aboitiz vs insurance company
2) case of mariano vs callejas — totality of evidence rule
3) Case of republic vs lorenzo shipping — If you comply with
the law, you are exercising extraordinary diligence.
- Did not bring the bill of lading but he asked for receipts.
It was considered compliance

Recap of the flight details

Case of manay vs cebu air
Is it sufficient to just give the recap on the flight details?
Don’t forget — BEFORE PAYMENT.
Full review of the flight details must be done before payment.

What about when full review was done after? Not

extraordinary
Why? Passenger has already paid.

Airport and airline carriers

Airport authority — service to the community or airline
companies
There is a coordination, not delegation.
IF you use delegation, common carriers would be bound by
the result.

Common carriers — they have the right

1) to rely on the results made by the airport management.
2) to blame for whatever that may happen because of the
failure to inspect the property or the goods of the
passengers

Situation: Connecting flight Manila - HK - LA

He stayed in HK overnight due to the connecting flight
The presumption rises.
Carrier can be liable but it depends. It has to be proven that
the cause of the death should be solely because of the
negligence of the carrier.

Duty to accept — reason why there is a penalty for the taxi who
refuses you to bring to your destination
Once it is perfected — there is no right to refuse

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