TRANSPORTATION LAW - DIMAAMPAO REVIEWER NOTES

A. Common Carriers § Bareboat/Demise Charter – where charterer becomes owner pro hac
a. Concept vice of a vessel.
- a common carrier is a person engaged in business of carrying/transporting passen- - JASON CLAUSE – provision in a charter party w/c states that in maritime accidents for
gers/goods/both, by land/water/air, for compensation, offering services to public. w/c shipowner not responsible either by law, contract, or otherwise; cargo shippers,
o “offering services to the public” – represents self as ready to engage in trans- consignees or owners shall contribute with the shipowner in general average.
port of goods for hire as public employment, not mere casual corporation. GOVERNING LAWS FOR TRANSPORTATION CONTRACTS CHEAT SHEET
b. Common carrier vs. private carrier Transportation Contract Primary Law Secondary Law
- Private Carrier – one who, without being engaged in the business of carrying as a COMMON NCC (Arts. 1732-1766) Code of Commerce
public employment, undertakes to deliver goods or passengers for compensation. PRIVATE
Code of Commerce
- COMMON CARRIER [PeK-MC] LAND (commerce)
NCC
Examples: pipeline 1. Engaged in the business of carrying goods for others as a PRIVATE NCC, provs. on deposit
* FOR HIRE *

operators; customs PUBLIC EMPLOYMENT, and must hold himself out as ready to (non-comm) (prop) & contracts (pax)
broker/ warehouse-
man, only when he
engage in the transport of goods/persons as a BUSINESS; DESTINATION
2. Undertakes to carry goods of KIND to w/c business confined; NCC Code of Commerce
undertakes to carry = Phils.
goods from one 3. By METHOD by w/c business is conducted, over est. routes; AIR
STOPOVER Treaties, Int’l Agreems,
point to another.
4. For HIRE or COMPENSATION. NCC
= Phils. Warsaw Convention
Common CARRIER Private INTER-
IN SOME SPECIAL CASE W/ NCC Code of Commerce
ALL PERSONS as to who may employ ISLAND (PH)
SOME INDIVIDUALS ONLY
FOREIGN to
W/N may refuse to enter NCC
NO YES, unless bound by contract WATER PH PORT
into contract of carriage Code of Commerce,
PH to
YES, public service W/N subj. to regulation NO NCC. (Art. 1753), law of COGSA
FOREIGN
on exemption for country of destination
CANNOT STIPULATE, pub policy MAY STIPULATE PORT
negligence of employees c. Diligence required
- Charter Party – a contract by virtue of w/c the owner/agent of a vessel leases the entire - Generally, common carrier is bound by law to observe EXTRAORDINARY DILIGENCE in
ship or some principal part thereof to another person for a specified period of time/use. the vigilance over the goods and safety of passengers.
o when under contract for affreightment, Common Carrier; but - Exceptionally, carriers and shippers may agree on the observance of diligence to a
§ Charter for Affreightment – whereby the owner of the vessel leases degree LESS THAN extraordinary, but NEVER tot. exemption/less than ordinary when:
part or all of its space to haul goods for others; a contract for special (1) In writing;
service to be rendered by owner of the vessel, i.e., the ff. kinds: (2) Supported by a valuable consideration other than service rendered; and
• TIME CHARTER – vessel leased to charterer for fixed period; (3) Reasonable, just, and not contrary to public policy
• VOYAGE CHARTER – ship leased for single voyage. * in cases of gratuitous carriage, stipulation limiting liability for negligence is valid,
o when under contract for bareboat or demise charter, Private Carrier. except for willful acts or gross negligence.
 TRANSPORTATION LAW - DIMAAMPAO REVIEWER NOTES
- Period of Obligation to Exercise
(1) Carriage of Goods
a. FROM time goods surrendered or unconditionally placed in the possession of,
and received by, carrier;
b. UNTIL delivered to, or until lapse of reasonable time for acceptance, by person
entitled to receive.
§ delivery may be ACTUAL or CONSTRUCTIVE
§ bill of lading not requisite for perfection of contract of carriage
(2) Carriage of Passengers
a. ONCE passenger places himself to, and is accepted by, and while he remains
under the proper care and charge of the carrier;
b. UNTIL such time passenger safely alights from and is given reasonable
opportunity to leave premises of common carrier.
- Diligence with respect to Baggage of Passengers
(1) Checked-In – Extraordinary Diligence;
(2) Hand-Carried – carrier to be liable as depositary, provided (a) notice was given; and
(b) passenger took necessary precaution w/c carrier had advised in re: care & vigilance
of the baggage.
B. Obligations and liabilities
a. Vigilance over goods
- PRESUMPTION OF NEGLIGENCE – arises If goods lost/destroyed/deteriorated, or in
case of death of or injuries to passengers; only proof of observance of extraordinary
diligence may overturn.
o Reckoning Event: Mere Failure to Safely Transport
- General Rule: Common carriers liable for loss/destruction/deterioration of goods.
- Exceptions: If the loss, destruction, or deterioration is due to—
1. Natural disaster/calamity, w/c is the proximate cause of loss;
2. Act of public enemy in war;
3. Act/omission of shipper/passenger;
4. Character of goods/defects in packing/container;
5. Order/act of competent public authority; or
6. Exercise of extraordinary diligence.
- Liability of Common Carrier for Acts Committed by Employees
o LIABLE, even though—
§ act/s beyond scope of employee authority; or
§ act/s in violation of orders.
o Art. 1760, NCC: common carrier liability cannot be eliminated or limited by
stipulation, by the posting of notices, by statements on tickets, or otherwise.
- Liability of Common Carrier for Acts Committed by Passengers/Strangers
o LIABLE when common carrier employees *could have* prevented/stopped it.
- Operation of Successive Carriers = Single Operation
- REGISTERED OWNER RULE – registered owners primarily & vicariously liable for
negligent operation of vehicles, unless:
a.) Vehicle taken or stolen from garage; or
b.) Vehicle driven w/o knowledge or consent.
- VICARIOUS LIABILITY – Art. 2176, in rel. to Art. 2180, NCC
§ Pater familias
b. Safety of passengers
C. Defenses available to a common carrier
a. Proof of negligence
b. Due diligence in the selection and supervision of employees
- Shippers may sue common carriers for damages for breach of contract of carriage—
o Available Defenses:
1. Exercise of extraordinary diligence; or
2. Art. 1734, NCC
a. Natural disaster/calamity, w/c is proxim. cause of loss;
* DUE DILIGENCE IN b. Act of public enemy in war;
THE SELECTION &
SUPERVISION OF EM-
c. Act/omission of shipper/passenger;
PLOYEE not defense. d. Character of goods/defects in packing/container; &
e. Order/act of competent public authority.
c. Fortuitous event
- Liability for Delay, as per Bill of Lading
I. YES, where period of delivery stipulated; and
II. IT DEPENDS, where no stipulation made—delivery must be within a
reasonable time, depending on expected date of arrival/nature of goods.
 TRANSPORTATION LAW - DIMAAMPAO REVIEWER NOTES

d. Contributory negligence 2) When injury/death of passenger due to fault of shipowner OR negligence of ship-
The contributory negligence of passengers WILL NOT excuse common carriers from owner and captain;
liability; such may only mitigate the liability thereof. 3) Crew claims under Workmen’s Compensation Act;
e. Doctrine of last clear chance 4) When vessel insured;
D. Extent of liability 5) When vessel not abandoned; and
a. Recoverable damages 6) When vessel not seaworthy.
- Damages recoverable in case of injury to/death of a passenger: - Coverage of Civil Liability of Ship Agents and/or Shipowners
1. ACTUAL DAMAGES – at least P50,000.00 for death of a passenger; inc. Loss of Earning * liability of i. All contracts of the captain to repair, equip and provision vessel; and
ship agent
Capacity = [(Life Expectancy x Gross Annual Income) - Living Expenses] SOLIDARILY w/
ii. Loss and damage to good loaded on vessel, w/o prejudice to shipowner
2. MORAL DAMAGES – (a) In case passenger dies; or (b) where carrier guilty of fraud/bad shipowner * or agent freeing themselves from liability by abandoning the vessel to
faith, unless culpa aquiliana (tort). (loss/damage) the creditors.
3. EXEMPLARY DAMAGES – (a) In case carrier acts in wanton, fraudulent, oppressive, or f. Limitations under the Warsaw Convention
malevolent manner; and (b) ONLY IF moral damages awarded. - under the Warsaw Convention, an air carrier is made liable for damages for:
4. Attorney’s fees. 1. death/wounding/other bodily injury of a passenger;
b. Stipulations limiting liability a. if cause took place on board aircraft or in the course of
- Generally, common carrier is bound by law to observe EXTRAORDINARY DILIGENCE in its embarking/disembarking operations.
the vigilance over the goods and safety of passengers. 2. destruction/loss of/damage to any reg’d luggage/goods; and
- Exceptionally, carriers and shippers may agree on the observance of diligence to a a. if occurrence causing took place dur. carriage by air.
degree LESS THAN extraordinary, but NEVER tot. exemption/less than ordinary when: 3. delay in transport by air of passengers/luggage/goods.
(1) In writing; - Liability of Carriers pursuant to Warsaw Convention:
(2) Supported by a valuable consideration other than service rendered; and Carriage Max. Liability Stipulations
(3) Reasonable, just, and not contrary to public policy $100,000.00 E. higher limit of liability may be agreed upon by
PASSENGERS
* in cases of gratuitous carriage, stipulation limiting liability for negligence is valid, per passenger special contract.
except for willful acts or gross negligence. GOODS
- DOCTRINE OF LIMITED LIABILITY (Maritime Law) “no vessel, no liability” $1,000.00 F. in certain cases, special declaration of interest
c. Also known as “Hypothecary Rule” CHECKED-IN
per kilogram in delivery may warrant supplementary sum
d. Liability of shipowner or ship agent arising from transportation of goods and $1,000.00 per
passengers LIMITED to interest in vessel. HAND-CARRIED
passenger Note:
i. Abandonment shall extinguish liability; and * willful misconduct – G. limits shall not prevent additional award fr. court for litigation costs &
ii. Sinking or total loss shall extinguish liability. circumstance whose expenses;
e. Exceptions: attendance shall DENY H. foregoing provision DOES NOT apply IF amt of damages awarded does not
1) Expenses for repairs contracted before vessel lost; carriers of privilege to exceed sum w/c carrier has offered w/in 6 mo-period reckoned fr. (1) date
of occurrence causing damage; or (2) before commencement of action.
limit liability.