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San Beda College of Law: Contract of Transportation/ Carriage
San Beda College of Law: Contract of Transportation/ Carriage
Parties
1. Common carrier 1. Common carrier
2. Shipper 2. Passenger
3. Consignee
Cause of liability
Delay in delivery, loss, Death or injury to the passengers
destruction, or deterioration of
the goods
Duration of liability
The duty of a common carrier to
From the time the goods are provide safety to its passengers
unconditionally placed in the so obligates it not only during the
COMMERCIAL LAW COMMITTEE
CHAIRPERSON: Garny Luisa Alegre ASST. CHAIRPERSON:Jayson O’S Ramos EDP: Beatrix I. Ramos SUBJECT HEADS:
Marichelle De Vera (Negotiable Instruments Law); Jose Fernando Llave (Insurance); Aldrich Del Rosario (Transportation Laws);
Shirley Mae Tabangcura, Bon Vincent Agustin (Corporation Law); Karl Steven Co (Special Laws); John Lemuel Gatdula (Banking Laws); Robespierre CU (Law on Intellectual Property)
San Beda College of Law 58
MEMORY AID IN COMMERCIAL LAW
possession of, and received by course of the trip, but for so long
the carrier for transportation until as the passengers are within its
the same are delivered actually or premises and where they ought
constructively by the carrier to to be in pursuance to the
the consignee or to the person contract of carriage. (LRTA v.
who has the right to receive Navidad, [2003])
them. (Art. 1736) All persons who remain on the
It remains in full force and premises within a reasonable
effect even when they are time after leaving the
temporarily unloaded or stored in conveyance are to be deemed
transit unless the shipper or passengers, and what is a
owner has made use of the right reasonable time or a reasonable
of stoppage in transitu. (Art. delay within this rule is to be
1737) determined from all the
It continues to be operative circumstances, and includes a
even during the time the goods reasonable time to see after his
are stored in a warehouse of the baggage and prepare for his
carrier at the place of destination departure. (La Mallorca v. CA, 17
until the consignee has bee SCRA 739 ; Abiotiz Shipping
advised of the arrival of the Corporation v. CA, 179 SCRA 95)
goods and has had reasonable It is the duty of common
opportunity thereafter to remove carriers of passengers to stop
them or otherwise dispose of their conveyances a reasonable
them. (Art. 1738) length of time in order to afford
Delivery of goods to the passengers an opportunity to
custom authorities is not delivery enter, and they are liable for
to the consignee. (Lu Do v. injuries suffered from the sudden
Binamira, 101 Phil 120) starting up or jerking of their
conveyances while doing so. The
duty which the carrier of
passengers owes to its patrons
extends to persons boarding the
cars as well as to those alighting
therefrom (Dangwa Trans Co.,
Inc. vs. CA 202 SCRA 574).
Thus, the WC does not operate as an In United Airlines vs. Uy the two-year
exclusive enumeration of the instances of an prescriptive period was not applied where
absolute limit of the extent of liability. It the airline employed delaying tactics.
does not preclude the application of the Civil
Code and other pertinent local laws. It does RULE IN CASE OF VARIOUS
not regulate or exclude liability for other SUCCESSIVE CARRIERS
breaches of contract by the carrier, or 1. Carriage of passengers
misconduct of its employees, or for some GENERAL RULE: Action is filed only
particular or exceptional type of damage. against the carrier in which the accident or
(Alitalia vs. CA) delay occurred.
EXCEPTION: Agreement or contract
In PanAm v. IAC, the WC was applied as whereby the first carrier assumed liability for
regards the limitation on the carrier’s the whole journey.
liability, there being a simple loss of 2. Carriage of baggage or goods
baggage without any improper conduct on a. Passenger or consignor can file an
the part of the officials or employees of the action against the first carrier and the
airline or other special injury sustained by carrier in which the damage occurred
the passenger. b. Passenger or consignee can file an
action against the last carrier and the
In KLM Royal v. Tuller, the WC has carrier in which the damage occurred.
invariably been held inapplicable, or as not
These carriers are jointly and severally SALVAGE
liable. (Art. 30) Two concepts:
1. Services one person renders to the owner
A contract of international carriage by air, of a ship or goods, by his own labor,
although performed by different carriers preserving the goods or the ship which the
under a series of airline tickets constitutes a owner or those entrusted with the care of
single operation. Members of the them have either abandoned in distress at
International Air Transportation Association sea, or are unable to protect or secure.
(IATA) are under a general pool partnership 2. Compensation allowed to persons by
agreement wherein they act as agent of whose voluntary assistance a ship at sea or
each other in the issuance of tickets to her cargo or both have been saved in whole
contracted passengers to boost ticket sales or in part from impending sea peril, or such
worldwide and at the same time provide property recovered from actual peril or loss,
passengers easy access to airlines which are as in cases of shipwreck, derelict or
otherwise inaccessible in some parts of the recapture.
world. (American Airlines vs. CA) Requisites:
1. Valid object of salvage;
Under a general pool partnership 2. Object must have been exposed to
agreement, the ticket-issuing airline is the marine peril (not perils of the ship);
principal in a contract of carriage while the 3. Services rendered voluntarily (neither
endorsee-airline is the agent. The obligation an existing duty nor out of a pre-
of the former remained and did not cease existing contract);
even when the breach occurred not on its 4. Services are successful, total or
own flight but on that of another airline partial.
which had undertaken to carry the Subjects of Salvage:
passengers to one of their destinations. 1. Ship itself;
(China Airlines vs. Chiok) 2. Jetsam – goods which are cast into the
sea, and there sink and remain under water;
JURISDICTION 3. Floatsam or Flotsam – goods which float
At the option of the plaintiff, the action upon the sea when cast overboard;
for damages may be filed in the: 4. Ligan or Lagan – goods cast into the sea
a. Court of domicile of the carrier; tied to a buoy, so that they may be found
b. Court of its principal place of business; again by the owners (p.173, Judge Diaz).
c. Court where it has a place of business Persons who have no right to a
through which the contract has been reward for salvage:
made; or 1. Crew of the vessel saved;
d. Court of the place of destination. (Art. 2. Person who commenced Salvage in spite
28(1)) of opposition of the Captain or his
NOTE: It is the passenger’s “ultimate representative;
destination” not “an agreed stopping place” 3. In accordance with Sec. 3 of the
that determines the country where suit is to Salvage Law, a person who fails to deliver a
be filed. salvaged vessel or cargo to the Collector of
The forum of action provided in Art. 28(1) Customs.
is a matter of jurisdiction rather than of
venue. (Santos III vs. Northwest; 2A C.J.S.) Derelict – a ship or her cargo which is
abandoned and deserted at sea by those
V. SALVAGE LAW (Act No. 2616) who are in charge of it, without any hope of
recovering it, or without any intention of Fees Fees belong
returning to it. distributed to the tugboat
among owner
The intention of those in charge must be crewmen
ascertained. If those in charge left with the
intention of returning, or of procuring RULES ON SALVAGE REWARD
assistance, the property is not derelict, but if 1. The reward is fixed by the RTC judge in
they quitted the property with the intention the absence of agreement or where the
of finally leaving it, it is derelict and a latter is excessive. (Sec. 9)
change of their intention and an attempt to 2. The reward should constitute a sufficient
return will not change its nature (Erlanger & compensation for the outlay and effort of
Galinger vs. Swedish East Asiatic Co. Ltd.). the salvors and should be liberal enough
to offer an inducement to others to
If it is clear that the intention to return is render services in similar emergencies in
slight, the salvage which was done the future.
thereafter is considered valid. (Notes and 3. If sold (no claim being made within 3
Cases on the Law on Transportation and months from publication), the proceeds,
Public Utilities, Aquino, T. & Hernando, R.P. after deducting expenses and the salvage
2004 ed. p. 616) claim, shall go to the owner; if the latter
does not claim it within 3 years, 50% of
CONTRACT OF TOWAGE the said proceeds shall go to the salvors,
A contract whereby one vessel, usually who shall divide it equitably, and the
motorized, pulls another, whether loaded or other half to the government. (Secs. 11-
not with merchandise, from one place to 12)
another, for a compensation. It is a 4. If a vessel is the salvor, the reward shall
contract for services rather than a contract be distributed as follows:
of carriage. a. 50% to the shipowner;
b. 25% to the captain; and
SALVAGE TOWAGE
Governed by Governed by c. 25% to the officers and crew in
special law Civil Code on proportion to their salaries. (Sec. 13)
(Act No. contract of
2616) lease Taking passengers from a sinking ship,
Requires Success is not without rendering any service in rescuing
success, required the vessel, is not a salvage service, being a
otherwise no duty of humanity and not for reward.
payment
Must be done Only the VI. PUBLIC SERVICE ACT
with the consent of the (C.A. No. 146)
consent of tugboat
the owner is PURPOSES:
captain/crew needed 1. To secure adequate, sustained service
men for the public at the least possible
Vessel must Vessel need cost;
be involved in not be 2. To protect the public against
an accident involved in an unreasonable charges and poor,
accident inefficient service;
3. To protect and secure investments in following government agencies: LTO;
public services; LTFRB; ATO; BOE; NTC; NEA; ERB; NWRC;
4. To prevent ruinous competition. CAB; and MIA.