TRANSPORTATION LAW Based on the Book of Aquino
COMMON CARRIERS
GENERAL CONSIDERATIONS
Contract of Transportation
person obligates himself to transport persons or property
from one place to another for a consideration.
2 KINDS:
1. Carriage of Passengers
Parties:
A. Common Carrier
B. Passenger
- one who travels in a public conveyance by virtue of
contract, express or implied, with the carrier as to the
payment of fare or that which is accepted as an
equivalent thereof
2 Types:
A. Contract to Carry
- Agreement to carry the passenger at some future
date.
Perfection: consensual (by mere consent)
a. Aircraft:
- if it can be established that the passenger had checked
in at the departure counter, passed through customs
and immigration, boarded the shuttle bus and
proceeded to the ramp of the aircraft and that his
baggage had already been loaded in the aircraft to be
flown with the passenger to his destination."
- Even if no tickets were issued, verbal contract to carry
is already binding.
b. Buses, Jeepneys, Street Cars:
- PUV stops and make a continuous offer to riders
and passenger acceptance by attempting to board.
c. Trains:
- Purchasing of ticket, present himself at proper place
and manner for transportation.
Light Rail Transit Authority (LRTA), et al. v. Marjorie Navidad,
et al.
When a certain Nicanor Navidad died after he fell on the
LRT tracks and was struck by a moving train which was
coming in at the exact moment that Mr. Navidad fell from
the platform. Mr. Navidad was treated as a passenger
because he entered the LRT station after having purchased
a "token" and he fell while he was on the platform waiting
for a train. Thus, Mr. Navidad was in the place designated
for boarding the train with the intention of riding the
oncoming train.
B. Contract of carriage/Common Carriage
- Perfection: Real contract (Assumed obligation only until
its facilities are actually used.)
2. Carriage of Goods
- Perfection: Consensual (the carrier agrees to accept
and transport goods at some future date.
Parties:
a. Shipper
Unweend Notes By: Connie Angela Torregosa
- Person who delivers the goods to the carrier for
transportation.
- Person who pays the consideration or on whose
behalf payment is made
b. Consignee
- The person to whom the goods are to be delivered.
- May be the shipper himself (as in the goods are to be
delivered to one of his branches.)
- May be 3rd person who is not party to the contract.
Bound by the contract of he accepted the bill of lading
and tried to enforce the agreement.
2 Types:
a. Common Carrier
b. Private Carrier
COMMON CARRIER
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.
Also defined as “one that holds itself out as ready to engage
in the transportation of good for hire as a public employment
and not as casual occupation.
Public Service. "... every person that now or hereafter may
own, operate, manage, or control in the Philippines, for hire
or compensation, with general or limited clientele, whether
permanent, occasional or accidental, and done for general
business purposes, any common carrier, railroad, street
railway, traction railway, subway motor vehicle, either for
freight or passenger, or both, with or without fixed route and
whatever may be its classification, freight or carrier service of
any class, express service, steamboat, or steamship line,
pontine, ferries and water craft, engaged in the transportation
of passengers or freight or both, shipyard, marine repair shop,
wharf or dock, ice plant, ice-refrigeration plant, canal,
irrigation system, gas, electric light, heat and power, water
supply and power petroleum, sewerage system, wire or
wireless communications systems, wire or wireless
broadcasting stations and other similar public services ..."
(Sec. 13 par. (b) of Public Service Act)
TEST to determine if common carrier:
1. Engaged in the business of carrying goods for others as
public employment generally as a business and not as a
casual occupation.
2. Undertake to carry goods of the kind which his business
is confined
3. Undertake to carry by the method of its business and
over established roads
4. Transportation must be for hire
CHARACTERISTICS: (Art. 1732 NCC)
1. Main. No distinction between it is his principal activity
or as an ancillary activity (sideline) (De Guzman v. CA)
2. Schedule. No distinction between service on a regular or
scheduled basis and occasional, episodic or unscheduled
basis. (Asia Lighterage Shipping, Inc. v. CA)
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TRANSPORTATION LAW Based on the Book of Aquino
3. Offered To. No distinction between one offered to the
general public and to narrow segment of the general
population (limited clientele)
4. Certification. Even if no Cert. of Public Convenience
5. Mode of Transpo. No distinction as to the means of
transport whether land, water or air; pipeline operators
included. (First Phil. Industrial Corp. v. CA)
6. Route. Even if with no fixed or known route, maintains
no terminals nor issues tickets. (Asia Lighterage Shipping,
Inc. v. CA)
7. Public Transpo. Need not be engaged in business of
public transportation
In De Guzman v. Court of Appeals, private respondent
Cendaña was considered a common carrier although his
principal business was as a junk dealer. Said respondent
was engaged in buying used bottles and scrap metal in
Pangasinan. Upon gathering sufficient quantities of such
scrap material, respondent would bring such material to
Manila for resale. He utilized two (2) six-wheeler trucks
which he owned for hauling the material to Manila. On
the return trip to Pangasinan, respondent would load his
vehicles with cargo which various merchants wanted
delivered to establishments in Pangasinan. For that
service, respondent charged freight rates which were
commonly lower than regular commercial rates. Thus,
even if the transportation of goods was ancillary to the
main business of buying and selling used bottles and
scrap metals, the Supreme Court considered the private
respondent a common carrier.
A charter party is 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; a contract of affreightment is one by
which the owner of a ship or other vessel lets the whole or
part of her to a merchant or other person for the conveyance
of goods, on a particular voyage, in consideration of the
payment of freight.
Charter Party (Common Carrier and Private Carrier)
- Private Carrier: it must be a bareboat or demise charter
where the charterer mans the vessel with his own people
and becomes the owner for the voyage or service
stipulated.
- Common Carrier: if it is a contract of affreightment like a
voyage charter or a time charter. In a voyage charter, the
carrier is answerable to the loss of the goods received for
transportation
- Planters Products, Inc. v. CA
Common Carrier v. Private Carrier
Common Carrier Private Carrier
Usual transaction single transaction; not a part
of a general business or
occupation
Extraordinary Diligence Ordinary Diligence
Cannot stipulate exemption May stipulate exemption
from liability from liability
Unweend Notes By: Connie Angela Torregosa
COMMON CARRIAGE DISTINGUISHED FROM OTHER
CONTRACTS
A. DISTINGUISHED FROM TOWAGE
- refers to a service rendered to a vessel by towing for the
mere purpose of expediting her voyage thus, it is hired
to bring another vessel to another place. e.g.: a tugboat
- Not a common carrier.
- Due diligence of a good father of a family is required.
B. DISTINGUISHED FROM ARRASTRE
- refers to hauling of cargo, comprehends the handling of
cargo on the wharf or between the establishment of the
consignee or shipper and the ship's tackle.
- Being the custodian of the goods discharged from a
vessel, an arrastre operator's duty is to take good care of
the goods and to turn them over to the party entitled to
their possession.
- Considered a Common Carrier
- Extraordinary Diligence required.
C. DISTINGUISHED FROM STEVEDORING
- 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.
- Not a common carrier.
- diligence of a good father of a family is required.
D. DISTINGUISHED FROM TRAVEL AGENCY
- contract of service and not a contract of carriage.
- Not a common carrier.
- diligence of a good father of a family is required
E. TRAMP SERVICE AND LINE SERVICE
- Both are Common Carriers.
- Line service is the operation of a common carrier which
publicly offers services without discrimination to any
user, has regular ports of call/destination, fixed sailing
schedules and frequencies and published freight rates
and attendant charges and usually carries multiple
consignments.
- Tramp service is the operation of a contract carrier which
has no regular and fixed routes and schedules but
accepts cargo wherever and whenever the shipper
desires, is hired on a contractual basis, or chartered by
any one or few shippers under mutually agreed terms
and usually carries bulk or break bulk cargoes.
Laws regarding International Carriage
Article 1753. The law of the country to which the goods are to
be transported shall govern the liability of the common carrier
for their loss, destruction or deterioration.
- The law of the country to which the goods are to be
transported governs the liability of the common carriers
in case of their loss, destruction or deterioration.
- Primarily governed by NCC. Code of Commerce and
special laws is suppletory.
NATURE OF BUSINESS
- Common Carriers exercise a sort of public office
- Consequently, common carriers are subject to regulation
by the State.
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TRANSPORTATION LAW Based on the Book of Aquino
REGISTERED OWNER RULE 5. Goods are injurious to health;
The rule is that the person who is the registered owner of a 6. Goods will be exposed to untoward danger like flood,
vehicle is liable for any damage caused by the negligent capture by enemies and the like;
operation of the vehicle although the same was already sold 7. Goods like livestock will be exposed to diseases;
or conveyed to another person at the time of the accident. 8. Strike; and
The registered owner is liable to the injured party subject to 9. Failure to tender goods on time.
his right of recourse against the transferee or the buyer.
B. DUTY TO DELIVER THE GOODS
Purpose of Registration: to identify the owner so that if any Delivery within the stipulated time.
accident happens, or that any damage or injury is caused by Carrier is bound to fulfill the contract and is liable for any
the vehicle on the public highways, responsibility therefor can delay.
be fixed on a definite individual, the registered owner.
Provisions on Delay:
GR: Registered owner is liable. Recourse to 3rd party Code of Commerce
complaint may be had if sold or transferred to another. • Article 358
XPN: vehicle is taken without the registered owner’s • Article 370
knowledge and consent • Article 371-Right of consignee to abandon. It confers
upon the consignee an exceptional but limited right to
KABIT SYSTEM abandon the goods transported before the arrival of the
An arrangement whereby a person who has been granted a goods at the place of delivery, by communicating such
certificate of public convenience allows other persons who abandonment to the carrier in writing.
own motor vehicles to operate them under his license, • Article 372
sometimes for a fee or percentage of the earnings. • Article 373
This is contrary to public policy and therefore void under Art. • Article 374
1409 of NCC NCC
Parties to the “kabit system” cannot invoke the same as • Art. 1740, 1747
against each other either to enforce their illegal agreement or In the absence, of any agreement as to the time of delivery,
to invoke the same to escape liability --- pari delicto rule within a reasonable time.
Thus, no action arises out of an illicit bargain for having Reasonable time:
entered into an illegal contract, neither can seek relief from the - May refer to expected date of arrival in the bill of lading.
courts and each must bear the consequences of his acts - Depend upon the nature of the goods as in perishable
goods.
OBLIGATIONS OF THE PARTIES
1. OBLIGATIONS OF THE CARRIER If delay legally inexcusable:
A. Accept. Duty to accept passengers and goods without 1. the carrier is still liable even if natural disaster causes the
discrimination; damage;
B. On time. to seasonably deliver the goods or bring the 2. the stipulation limiting the liability of the carrier is
passenger to the destination; inoperative;
C. To deliver the goods to the proper person; and 3. the carrier is liable for the damages caused by the delay;
D. To exercise extraordinary diligence in the performance of and
its duties. 4. consignee may exercise his right to abandon under
Article 371 of the Code of Commerce.
A. DUTY TO ACCEPT
GR: Carriers are prohibited to select passengers and cargoes. Passenger rights in case of delay
(But not absolute) ARTICLE 698. In case a voyage already begun should be
XPN: Reasonable and necessary reason for discrimination. interrupted, the passengers shall be obliged to pay the fare in
VALID GROUNDS FOR NON-ACCEPTANCE: proportion to the distance covered, without right to recover
1. Hazardous and Dangerous Substances including for losses and damages if the interruption is due to fortuitous
dynamites and other explosives; event or force majeure, but with a right to indemnity if the
- Carrier may not be designed to carry dangerous interruption should have been caused by the captain
chemicals. exclusively. If the interruption should be caused by the
2. The goods are unfit for transportation; disability of the vessel and a passenger should agree to await
- Unfit or improper packaging or defect in their the repairs, he may not be required to pay any increased price
containers thus carrier may refuse. Or they may of pas-sage, but his living expenses during the stay shall be
choose to transport and limit its liability by for his own account.
stipulation.
- Article 356 & 357 Code of Commerce C. DUTY DELIVER TO PROPER PERSON
3. Acceptance would result in overloading; 1. Place – Goods should be delivered to the consignee in the
4. The goods are considered contrabands or illegal goods; place agreed upon by the parties.

Unweend Notes By: Connie Angela Torregosa 3

TRANSPORTATION LAW Based on the Book of Aquino
The shipper may change the consignment of the goods
provided that at the time of ordering the change of the
consignee the bill of lading signed by the carrier be returned
to him, in exchange for another wherein the novation of the
contract appears. The expenses occasioned by the change
shall be for the account of the shipper. (Art. 360 Code of
Commerce)
2. Consignee – Delivery must generally be made to the
owner or consignee or to someone lawfully authorized
by him to receive the goods for his account or to the
holder of the negotiable instrument
If Negotiable Bill of Lading:
- deliver to the transferee or holder.
- Article 1513. A person to whom a negotiable document
of title has been duly negotiated acquires thereby:
(1) Such title to the goods as the person negotiating the
document to him had or had ability to convey to a
purchaser in good faith for value and also such title to
the goods as the person to whose order the goods were
to be delivered by the terms of the document had or had
ability to convey to a purchaser in good faith for value;
and
(2) The direct obligation of the bailee issuing the
document to hold possession of the goods for him
according to the terms of the document as fully as if such
bailee had contracted directly with him.
D. DUTY TO EXERCISE EXTRAORDINARY
DILIGENCE
A common carrier is required to faithfully comply with his
obligation to deliver the goods and. to ferry the passenger to
the point of destination with the element of integrity in the
sense that the goods should be delivered in the same
condition that they were received and to transport passengers
without encountering any harm or loss.
Problems:
1. Maria boarded a passenger truck owned by Metro
Transit and driven by Juan. While the truck was
proceeding to its destination, it fell into a ravine and
several passengers, including Maria were killed. The
truck was insured under a Common Carrier's policy
with Island Insurance Company. State the liabilities, if
any, of Metro Transit to the heirs of Maria.
A: Metro Transit is liable to the heirs of Maria for breach of
contract of carriage. It is clear that there was breach of
contract of carriage because the passenger died while
riding the carrier. The fact that death or injury was caused
gives rise to the presumption of negligence. (1968)
2. A shipped 100 pieces of plywood from Davao City to
Manila. He took a marine insurance policy to insure
the shipment against loss or damage due to "perils of
the sea, barratry, fire, jettison, pirates and other such
perils." When the ship left the port of Davao, the
shipman in charge forgot to secure one of the
portholes, thru which sea water seeped during the
voyage, damaging the plywood.
A filed a claim against the insurance company which
refused to pay on the ground that the loss or damage
Unweend Notes By: Connie Angela Torregosa
was due to a peril of the sea or any of the risks covered
by the policy. It was admitted that the sea was
reasonably calm during the voyage and that no.
strong winds or waves were encountered by the
vessel. How would you decide the case? Explain.
A: The insurer validly refused to pay because the
proximate cause of the damage to the plywood was not the
perils or risks insured against but rather the negligence of
the shipman in charge in forgetting to secure one of the
portholes of the ship. However, A can recover his damages
from the shipowner or ship agent of said vessel, for not
having exercised extraordinary diligence on vigilance over
goods. (1983)
GR: Presumption of Negligence
The law imposes liability on common carriers if shown that:
1. there exists a contract between the passenger or the
shipper and the common carrier; and
2. that the loss, deterioration, injury or death took place
during the existence of the contract.
Mere proof of delivery of the goods in good order to a
common carrier and their arrival in bad order at their
destination (or failure to transport the passenger safely)
constitutes a prima facie case of fault or negligence against the
carrier.
Court need not make an express finding of fault or negligence
on the carrier to hold it liable.
XPN: Evidence that Extraordinary Negligence was exercised
and by showing adequate explanation as to how the
deterioration, loss, or destruction of the goods happened.
Duration of extraordinary diligence: on Goods
From the moment the goods are delivered to the carrier until
actual or constructive delivery.
Good are deemed delivered to Carrier:
When goods are placed in the exclusive possession, custody
and control of the carrier and carrier has accepted the same
Duration of extraordinary diligence: on Passengers
Trains: Commences the moment the person who purchases
the ticket from the carrier presents himself at the proper place
and in proper manner to be transported with bona fide intent
to ride the carrier.
Commences when one puts himself in the care of the carrier,
or directly under its control, with the bona fide intention of
becoming a passenger, and is accepted as such by the carrier
as where he makes a contract for transportation and presents
himself at the proper place and in a proper manner to be
transported but not where he does not present himself in a
proper way to become a passenger.
Carriage by Sea: Commences as soon as a person with bona fide
intention of taking passage places himself in the care of the
carrier or its employees and is accepted as passenger
Land transportation: On the other hand, motor vehicles like
passenger jeepneys and buses are duty bound to stop their
conveyances for a reasonable length of time in order to afford
passengers an opportunity to board and enter, and they are
liable for injuries suffered by boarding passengers resulting
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TRANSPORTATION LAW Based on the Book of Aquino
from the sudden starting up or jerking of their conveyances
while they do so. The rule is that once a public utility bus or
jeepney stops, it is making a continuous offer to bus riders.
The duty to exercise utmost diligence with respect to
passengers terminates when the passenger has, after reaching
his destination, safely alighted from the carrier's conveyance
or had a reasonable opportunity to leave the carrier's
premises.
Passenger; defined
One who travels in a public conveyance by virtue of a
contract, express or implied, with the carrier as to the
payment of fare, or that which is accepted as an equivalent
thereof.
Elements:
1. purchase of ticket from the carrier
2. presents himself at the proper place
3. presents himself in proper manner
4. with bona fide intent to ride the carrier.
Defenses of Common Carriers
Article 1734 (No other defense may be raised: exclusive or
closed list)
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
6. Exercise of extraordinary diligence
Hijacking, although not among the exclusive list may be used
as defense of common carrier as long as extraordinary
diligence is observed.
In De Guzman v. CA:
Hijacking of the carrier does not fall among the five
categories of exempting causes thus, the common carrier is
presumed be at fault or to have acted negligently unless
there is a proof of extraordinary diligence on its part of the
common carrier. SC explained:
"Petitioner insists that private respondent had not observed
extraordinary diligence in the care of petitioner's goods.
Petitioner argues that in the circumstances of this case,
private respondent should have hired a security guard
presumably to ride with the truck carrying the 600 cartons
of Liberty filled milk. We do not believe, however, that in
the instant case, the standard of extraordinary diligence
required private respondent to retain a security guard to
ride with the truck and to engage brigands in a fire fight at
the risk of his own life and the lives of the driver and his
helper.
The precise issue that we address here relates to the specific
requirements of the duty of extraordinary diligence in the
vigilance over the goods carried in the specific context of
hijacking or armed robbery.
XXX
Unweend Notes By: Connie Angela Torregosa
Under Article 1745(6) above, a common carrier is held
responsible - and will not be allowed to divest or to
diminish such responsibility - even for acts of strangers like
thieves or robbers, except where such thieves or robbers in
fact acted "with grave or irresistible threat, violence or
force." We believe and so hold that the limits of the duty of
extraordinary diligence in the vigilance over the goods
carried are reached where the goods are lost as a result of
a robbery which is attended by "grave or irresistible
threat, violence or force."
In the instant case, armed men held up the second truck
owned by private respondent which carried petitioner's
cargo. The record shows that an information for
Invalid Defenses:
1. Mechanical Defects
2. Tire Blow-outs
3. Explosions
4. Worms and Rats
5. Water Damage
6. Barratry
FORTUITOUS EVENT/ CASO FORTUITO
Extraordinary circumstance independent of the will of the
carrier or of his employee. Unforeseeable and inevitable.
An unexpected event such as floods, torrents, shipwrecks,
conflagrations, lightning, compulsion, insurrections,
destruction of buildings by unforeseen accidents and other
occurrences of a similar nature. to be a valid defense must be
established to be the proximate cause of the loss.
Requisites of Fortuitous Event: as defense of carrier
1. The cause of the unforeseen and the unexpected occurrence,
or of the failure of the debtor to comply with his obligation,
must be independent of the human will
2. It must be impossible to foresee the event which constitutes
the caso fortuito, or if it can be foreseen, it must be impossible
to avoid
3. The occurrence must be such as to render it impossible for
the debtor to fulfill his obligation in a normal manner
4. The obligor (debtor) must be free from any participation in
or the aggravation of the injury resulting to the creditor
Proximate Causation
Since common carrier is presumed is to be negligent, it has
been observed that the DOCTRINE of PROXIMATE CAUSE
is INAPPLICABLE to a contract of carriage.
Passenger/shipper has no burden of proving that his injury
was caused by the negligent or intentional act or omission of
the carrier or his agents. It is the common carrier who may
prove, by way of defense, that the loss or damage cannot be
traced to any act of the said carrier but the proximate and only
cause of the loss in any of the circumstances mentioned in
Article 1734 of the New Civil Code.
Doctrine of the Last Clear Chance
When both parties involved in the accident were both
negligent, the negligence of the party will not be considered
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TRANSPORTATION LAW Based on the Book of Aquino
the proximate cause if the other party has the last clear chance
of avoiding the injury.
A tort committed by a stranger who causes injury to a
passenger does not accord the latter a cause of action against
the carrier. The negligence punished under the law is the
negligent omission of the carrier’s employees in their duty to
prevent a tort which could have been foreseen or prevented
by them. In a case of tort committed by stranger unforeseeable
by the carrier’s employees, the latter could be exculpated from
such liability.
PUBLIC ENEMY
Presupposes a state of war and refers to the government of a
foreign nation at war with the country to which the carrier
belongs, though not necessarily with that to which the owner
of the gods owes allegiance.
Thieves, rioter, and insurrectionists are not included. They are
merely private depredators. Thus, rebels in insurrection are
generally not embraced in the definition of public enemy.
However, if the rebels hold a portion of territory, declared
their impendence, cast off their allegiance and has organized
armed hostility to the government, and the authority of the
latter is at the time overthrown, as in the case of MNLF, such
an uprising may take on the dignity of a civil war,
War may either be international, civil, foreign or domestic and
an armed contests assumes as such, they come within the term
“public enemy”.
For common carriers to be exempted from responsibility, the
act of the public enemy should have been the proximate and
only cause of the loss. Moreover, due diligence must be
exercised to prevent or at least minimize the loss before,
during and after the performance of the act of the public
enemy in order that the carrier may be exempted from
liability for the loss, destruction, or deterioration of the goods.
IMPROPER PACKING
Specifies the character of the goods or defects in the packing
or in the containers as a defense that is available to common
carriers.
The Carriage of Goods by Sea Act provides that the carrier
shall not be liable for: (Sec. 4(2), m, n, o, and p)
1. wastage in bulk or weight or any other loss or damage
arising from inherent defect, quality or vice of goods,
2. insufficiency of packing,
3. insufficiency or inadequacy of the marks, or
4. latent defects not discoverable by due diligence.
However, despite defect in packaging, the common carrier
must exercise due diligence to forestall or lessen the loss (Art.
1742 NCC). If the defects in packaging is apparent upon
ordinary observation, carrier may receive the goods under
protest and such acceptance with reservation should be noted
in the bill of lading. For if carrier receives the goods without
Unweend Notes By: Connie Angela Torregosa
protest, it is not relieved of liability in case injury or loss
results therefrom.
Defect
is want or absence of something necessary for completeness
or perfection; a lack of something essential to completeness; a
deficiency in something essential to the proper use for the
purpose for which a thing is used.
Defectiveness is not synonymous with inferiority. Inferior
means of poor quality, mediocre or second rate.
ORDER OF PUBLIC AUTHORITY
Exempted from liability only if the public authority who
issued the order is duly authorized to issue the order. (Art.
1743 NCC)
This defense is not available if:
1. the public authority has no authority to issue the subject
order, or
2. if the public authority exceeded his authority.
Carrier is not liable for loss or damage resulting from:
• arrest or restraint of princes, rulers, or people, or
• seizure under legal process and
• from quarantine restrictions.
EXERCISE OF EXTRAORDINARY DILIGENCE
Primary defense in the carriage of passengers. Even if with
fortuitous event, proof of exercise of extraordinary diligence
should be presented. (Art. 1759&1763 NCC)
Acts of Employees
Carrier’s liability does not cease upon proof of DGFF in the
selection and supervision of their employee. (Art. 1759(2)
NCC). Selection should not only with regards to the technical
competence and physical abilities, but also to their total
personality including their patterns of behavior, moral fibers
and social attitude.
Reason for this rule:
1. The carrier is required to furnish its passenger that full
measure of protection afforded by the exercise of the
high degree of care prescribed by the law from the acts
of the carrier's own servants charged with the
passenger's safety;
2. Carrier confides in the servant's hands the performance
of his contract to safely transport the passenger,
delegating therewith the duty of protecting the
passenger with the utmost care; and
3. as between the carrier and the passenger, the former
must bear the risk of wrongful acts or negligence of the
carrier's employees against passengers, since it, and not
the passengers, has power to select and remove them.
This is based on the doctrine of respondeat superior (supposing
that EE acts within the scope of his authority and duty;
minority view) and carrier’s implied duty to transport
passengers safely.
Acts of other passengers and Third Persons
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TRANSPORTATION LAW Based on the Book of Aquino
Availability of this defense is also subject to the exercise of a
carrier of due diligence to prevent or stop the act or omission.
Negligence of the carrier need not be the sole cause of the
damage or injury to the passenger or the goods. The carrier
would still be liable even if the contractual breach concurs
with the negligent act or omission of another person.
Passengers Baggages (ART 1754 NCC)
Baggage; defined
include whatever articles a passenger usually takes with him
for his own personal use, comfort, and convenience according
to the habits or wants of the particular class to which he
belongs, either with reference to his immediate necessities or
to the ultimate purpose of his journey.
Checked-in Baggage.
The rules that are applicable to goods that are being shipped
are applicable to baggage delivered to the custody of the
carrier.
Hand Carried Luggage.
If the passenger had hand carried luggage, the rules under
Articles 1998, 2000 to 2003 of the Civil Code apply.
Hotel keepers are responsible for the deposit of effects of
travelers provided notice was given to the former. Any
stipulation limiting the liability of carriers shall be void.
Undeclared luggage is immaterial so long as it was received
by the carrier for transportation. Thus, carrier is liable for any
loss deposited to them.
OBLIGATIONS OF SHIPPER, CONSIGNEE AND
PASSENGER.
Shipper or passenger:
1. bound by his contractual obligation.
2. bound to pay the consideration in the form of freight or
fare.
3. obliged to exercise due diligence in avoiding damage to
the goods that are being shipped or injury to his person.
NOTE:
Contributory Negligence of Shipper (Art. 1741 NCC)
Not a defense that will excuse the carrier from liability. It will
only mitigate such liability.
Contributory Negligence of Passengers.
Passengers are likewise bound to observe due diligence to
avoid injury. (Art. 1761 and 1762 NCC)
However, if acts of shipper or passenger is the proximate and
only cause of the loss: carrier NOT LIABLE.
The carrier may be able to prove that the only cause of the loss
of the goods is any of the following:
1. Failure of the shipper to disclose the nature of the goods;
2. Improper marking or direction as to the destination;
3. Improper loading when he assumes such responsibility.
4. Improper packing of the goods by the shipper.
Unweend Notes By: Connie Angela Torregosa
Doctrine of Avoidable Consequences
Even if the carrier is responsible for the loss or injury, the
passenger is also required to lessen the damage or injury.
Doctrine of Last Clear Chance
A negligent carrier is liable to a negligent passenger in placing
himself in peril, if the carrier was aware of the passenger’s
peril, or should have been aware of it in the reasonable
exercise of due care, had in fact an opportunity later than that
of the passenger to avoid an accident.
Last clear chance applies in a suit between the owners and
drivers of colliding vehicles. It does not arise where a
passenger demands responsibility from the carrier to enforce
its contractual obligations. For it would be inequitable to
exempt the negligent driver of the carrier and its owner on the
ground that the other driver was likewise guilty of
negligence.
Assumption of Risk
Carriers are not insurers of the lives of their passenger thus,
passenger should assume the risk of boarding a carrier.
Carriers cannot be held liable at all time provided the latter
exercised extraordinary diligence.
Q: A and his classmates take a bus from U.P. to Quiapo.
On the way, another Quiapo bound bus tries to overtake
them. A and his classmates dare the bus driver to run faster
and race with the other bus. The driver takes their dare, to
the delight of A and his friends who cheered him.
On rounding the curve, the bus driver fails to slow down
and the bus turns turtle, resulting in the death of A and in
injuries to the other passengers. The bus carried the
following sign: "Do not talk to the driver while the bus is in
motion, otherwise the company will not assume liability
for any accident." Explain briefly the extent of the liability,
if any of the bus company, giving the legal provisions and
principles involved.
A: The bus company is liable for damages to A's heirs and
to all the injured passengers. The bus company is obligated
to exercise utmost diligence in carrying its passengers
which cannot be eliminated or limited by stipulation or by
posting notices (Art. 1757, Civil Code). It is believed that A
cannot be said to have assumed the risk of being injured
when he urged the driver to accept the dare. At most, A can
only be said to be guilty of contributory negligence which
can only mitigate the amount of damages since the
proximate cause of the accident was the driver’s willful and
reckless act in running a race with the other bus.
Where a carrier's employee is confronted with a sudden
emergency, the fact that he is obliged to act quickly and
without a chance for deliberation must be taken into account,
and he is not held to the same degree of care that he would
otherwise be required to exercise in the absence of such
emergency but must exercise only such care as any ordinary
prudent person would exercise under like circumstances and
conditions, and the failure on his part to exercise the best
7
TRANSPORTATION LAW Based on the Book of Aquino
judgment the case renders possible does not establish lack of
care and skill on his part which renders the company, liable.
FREIGHT
A. Amount to be Paid
The regulation of rates is founded upon the valid exercise of
the Police Power of the state in order to protect the public
from arbitrary and excessive rates while maintaining the
efficiency and quality of services rendered. The fixing of just
and reasonable rates involves a balancing of investor and the
consumer interest.
B. Who will pay
Shipper may pay the necessary freight before or at the time
he delivers the goods to the carrier for shipment or consignee
may pay (as stipulated) the freight at the point of destination.
The consignee is bound by such stipulation the moment he
accepts the goods.
1. Consignee
Primarily liable for the payment of the freight charges
whether or not he is the owner of the goods.132 The
obligation to pay is implied from the mere fact the
consignor has placed the goods with the carrier for the
purpose of transportation.
2. Passengers are contractually bound to pay the fare
within such time as prescribed by regulations or by the
carrier either before the passenger can board the carrier
or while the passenger is already on board.
C. TIME TO PAY THE FREIGHT
Consignee is supposed to pay within twenty-four (24) hours
from the time of delivery in the absence of any agreement.
(Art. 374 Code of Commerce)
1. Carriage of Passengers by Sea
Tickets are purchased in advance and carriers are not
supposed to allow passengers without tickets --- the
carrier is bound to observe a “No Ticket, No Boarding
Policy”.
Passenger may opt for a refund of his ticket should
departure of the vessel is delayed without refund service
fee and if he fails or no longer wants to board the carrier,
may have his ticket revalidated.
Delayed voyage means “late departure of the vessel from its
port of origin and/or late arrival of the vessel to its port of
destination”.
Unreasonable delay means “the period of time that has lapsed
without just cause and is solely attributable to the carrier
which has prejudiced the transportation of the passenger
and/ or cargoes to their port of destination.
Revalidation means “the accreditation of the ticket that is not
used and intended to be used for another voyage.
2. Carrier’s Lien
Exercised by carrier should consignee fail to pay the
consideration for the transportation.
DEMURRAGE
Demurrage is the compensation provided in the contract of
affreightment for the detention of the vessel beyond the time
Unweend Notes By: Connie Angela Torregosa
agreed on for loading and unloading. It is the claim for
damages for failure to accept delivery.
Liability for demurrage is for breach of the implied obligation
to load or unload the cargo with reasonable dispatch and such
liability should be expressly stipulated in the contract.
Notice of arrival or their placement is a condition precedent
to the right to collect demurrage charges.
EXTRAORDINARY DILIGENCE
RATIONALE: This extraordinary diligence required of
common carriers is calculated to protect the passengers from
the tragic mishaps that frequently occur in connection with
rapid modern transportation. This is demanded by the
preciousness of human life and by the consideration that
every person must in every way be safeguarded against all
injury.
Exercise of proper diligence requires the following:
1. must use common sense
2. exercise due reflection in all his acts;
3. be cautious, careful and prudent through fear of
recurring punishment
How duty is complied with
Diligence of good father of a family not enough.
The law mandates common carriers to exercise extraordinary
diligence in the performance of his obligation as far as human
care and foresight can provide, using the utmost diligence of
a very cautious person, with due regard for all the
circumstances. Such duty extends to the members of the crew
or complement operating the carrier.
EXTRAORDINARY DILIGENCE
A. GOODS
The parties cannot stipulate that the carrier will NOT exercise
ANY diligence in the custody of goods
However, the law allows a stipulation whereby the carrier
will exercise a degree of diligence less than extraordinary on
goods. (Art. 1744)
B. PASSENGERS
There can be NO stipulation lessening the utmost diligence
owed to passengers (Art. 1757 NCC) but may be valid for
gratuitous (non-paying) passengers but not for acts of gross
negligence (Art. 1758 NCC)
C. CARRIAGE BY SEA
1. Seaworthiness
Is that strength, durability and engineering skill made a part
of a ship’s construction and continued maintenance, together
with a competent and sufficient crew, which would withstand
the vicissitudes and dangers of the elements which might
reasonably be expected or encountered during her voyage
without loss or damage to her particular cargo
8
TRANSPORTATION LAW Based on the Book of Aquino
First step that should be undertaken in complying with the
duty of extraordinary diligence in transporting goods or
passengers by sea.
No NCC express provision on warranty of seaworthiness but
it is implied as failure of such is breach of its duty.
To be seaworthy, vessel must be:
a. Fit to withstand the rigors of the voyage (whether the
ship and its appurtenances are reasonably fit to
perform the service undertaken).
b. Fit to store the cargoes and accommodate passengers
to be transported (proper storage and no
overloading)
c. adequately equipped for the voyage (adequate exit
doors, life boats, life vests and other similar items.)
d. manned with a sufficient number of competent
officers and crew. (Article 609 Code of Commerce)
Competent captain and crew vs. negligence of captain and
crew.
Negligence of the captain or crew may be covered by the Limited
Liability Rule (the rule says that the liability of the shipowner
may be limited to the value of the vessel)
Incompetent Captain and crew, the Limited Liability Rule cannot
be invoked because the shipowner may be deemed negligent.
Burden of proof is on the shipowner that the ship is
seaworthy and certificates of seaworthiness does not suffice
to overcome presumption of negligence.
2. Cargoworthiness
The vessel must be sufficiently strong and equipped to carry
the particular kind of cargo which she has contracted to carry
and her cargo must be so loaded that it is safe for her to
proceed on her voyage.
Rules on passenger safety
A. Memorandum Circular No. 112: passengers do not
merely contract for transportation because they have the
right to be treated by the carrier and its employees with
kindness, respect, courtesy and due consideration. They
are entitled to be protected against personal conduct,
injurious language, indignities and abuses from the said
carrier and its employees
B. Memorandum Circular No. 114: provides safety
measures required for all shipowners and operators of
passenger liner vessels.
3. Deviation (Art. 359 Code of Commerce)
MARINA approves the routes of vessel and change of route
should be authorized by the same.
Improper deviation may be a valid ground for denial of
insurance claim
4. Transshipment,
- Is the act of taking cargo out of one ship and loading it in
another
- the transfer of goods from the vessel stipulated in the
contract of affreightment to another vessel before the
place of destination named in the contract has been
reached.
Unweend Notes By: Connie Angela Torregosa
- transfer for further transportation from one ship or
conveyance to another.
- It is not dependent upon the ownership of the
transporting ships but rather on the fact of actual
physical transfer of cargo from one vessel to another.
D. CARRIAGE BY LAND
1. Condition of vehicle
Should be in good order and condition.
If the carriers will replace certain parts of the motor vehicle,
they are duty bound to make sure that the purchased parts
are not defective.
Carrier cannot escape liability by claiming that the accident
resulting from a defective brake or tire is due to a fortuitous
event even if the tire, subject of a blow-out, is brand new.
2. Traffic Rules should be observed. (Art. 2185 & 1756
NCC)
3. Duty to Inspect.
The carrier is duty bound to conduct such inspection
depending on the circumstances.
Where a common carrier has reasonable ground to suspect
that the offered goods are of a dangerous character, the carrier
has the right to know the character of such goods and to insist
inspection, if reasonable and practical under the
circumstances, as a condition of receiving and transporting
such goods. To be subjected to unusual search, other than the
routinary inspection procedure customarily undertaken,
there must exist proof that would justify cause for
apprehension that the baggage is dangerous as to warrant
exhaustive inspection, or even refusal to accept carriage of the
same.
E. CARRIAGE BY AIR
The aircraft must be in such a condition that it must be able to
withstand the rigors of flight.
Airworthiness – An aircraft, its engines propellers, and other
components and accessories, are of proper design and
construction, and are safe for air navigation purposes, such
design and construction being consistent with accepted
engineering practice and in accordance with aerodynamic
laws and aircraft science.
Proof of airworthiness is not by itself sufficient to prove
exercise of extraordinary diligence.
BILL OF LADING
Bill of Lading (BOL)
A written acknowledgement, signed by the master of a vessel
or other authorized agent of the carrier, that he has received
the described goods from the shipper, to be transported on the
expressed terms to be described the place of destination, and
to be delivered to the designated consignees of the parties.
A. CONCEPTS, DEFINITION AND KINDS
Not necessary in the perfection of a contract of carriage. (Art.
354 Code of Commerce)
9
TRANSPORTATION LAW Based on the Book of Aquino
KINDS OF BILLS OF LADING.
1. Clean bill of lading
One which does not contain any notation indicating any
defect in the goods. A foul bill of lading is one that
contains such notation.
2. Spent Bill of Lading
If the goods were already delivered but the bill of lading
was not returned.
3. Through bill of lading. A "through bill of lading" is one
issued by a carrier who is obliged to use the facilities of
other carriers as well as his own facilities for the purpose
of transporting the goods from the city of the seller to the
city of the buyer, which bill of lading is honored by the
second and other interested carriers who do not issue
their own lading.'
4. On Board Bill v. Received for Shipment Bill.
On Board bill of lading is one in which it is stated that
the goods have been received on board the vessel which-
is to carry the goods. It is issued when the goods have
been actually placed aboard the ship with every
reasonable expectation that the shipment is as good as on
its way.
Received for Shipment bill of lading is one in which it
is stated that the goods have been received for shipment
with or without specifying the vessel by which the goods
are to be shipped. These are issued whenever conditions
are not normal and there is insufficiency of shipping
space.
5. Custody Bill of Lading. In this type of bill of lading, the
goods are already received by the carrier but the vessel
indicated therein has not yet arrived in the port.
6. Port Bill of Lading. In a port bill of lading, the vessel
indicated in the bill of lading that will transport the
goods is already in the port.
WHEN EFFECTIVE
A bill of lading usually becomes effective upon its delivery to
and acceptance by the shipper.
Acceptance.
1. Shipper who receives a bill of lading without objection
after an opportunity to inspect it,
2. permits the carrier to act on it by proceeding with the
shipment.
NATURE; Operates as a:
1. Receipt
2. Contract
3. Document of title (symbol of the goods)
1. Bill of Lading as a Receipt
As comprehending all methods of transportation, a BOL may
be defined as a written acknowledgement of the receipt of
goods and an agreement to transport and to deliver them at a
specified place to a person named or on his order.
Other terms, “shipping receipts”, “forwarders receipts”, and
“receipts for transportation”.
(SC) the designation however is not material, and neither is
the form of the instrument. If it contains an acknowledgement
Unweend Notes By: Connie Angela Torregosa
by the carrier of the receipt of goods for transportation it is, in
legal effect a BOL.
The issuance of a bill of lading carries the presumption that
the goods were delivered to the carrier issuing the bill, for
immediate shipment, and it is nowhere questioned that a bill
of lading is prima facie evidence of the receipt of the goods by
the carrier.
2. Bill of Lading as a Contract
Parties: Shipper, Carrier and Consignee
Consignee made a party to the contract because of:
a. The relationship of agency between the consignee
and the shipper/ consignor;
b. the unequivocal acceptance of the bill of lading
delivered to the consignee, with full knowledge of its
contents or
c. availment of the stipulation pour autrui, i.e., when
the consignee, a third person, demands before the
carrier the fulfilment of the stipulation made by the
consignor/shipper in the consignee's favor,
specifically the delivery of the goods/cargoes
shipped.
Contract of Adhesion. Bills of lading, as well as tickets,
constitute a class of contracts of adhesion. Hence, they are
normally construed liberally in favor of the passenger or
shipper who adhered to such bill of lading or ticket.
Parol Evidence Rule. A bill of lading is covered by the parol
evidence rule. Under the parol evidence rule, the terms of a
contract are rendered conclusive upon the parties, and
evidence aliunde is not admissible to vary or contradict a
complete and enforceable agreement embodied in a
document, subject to well defined exceptions. The parol
evidence rule is based on the consideration that when the
parties have reduced their agreement on a particular matter
into writing, all their previous and contemporaneous
agreements on the matter are merged therein.
BOL as Legal Evidence of the Contract.
The BOL is the legal evidence of the contract and the entries
thereof constitutes prima facie evidence of the contract.
All the essential elements of a valid contract (cause, consent,
object) are present when such bill is issued.
3. Bill of Lading as a Document of Title
Categorized as an actionable document when a shipper
enforces a contractual obligation as stated in the bill of lading.
Shipment Terms
Functions:
1. They determine the point at which the risk of loss passes
from seller to buyer;
2. They determine what performance by the seller amounts
to a tender which will put the buyer, if he thereafter
refuses to accept delivery, in breach; and
3. They are used for quoting the price.
10
TRANSPORTATION LAW Based on the Book of Aquino
a. In F.O.B. (Free on Board), the risk passes to the buyer at
no. ofthe F.O.B. point. Hence, the terms "F.O.B. Point of
Destination" means that the seller still assumes the risk
until the goods reach the point of destination.
b. F.A.S (Free Alongside) is a variant of F.O.B. and is used
for carriage by water, Thus, F.A.S Vessel" means that the
seller relinquishes the risk the moment the goods are
delivered alongside the vessel.
"F.A.S. Vessel," the seller is under no obligation to see to the
loading and all that is required is delivery to the wharf. If it is
"F.O.B. Vessel," the seller must see to it that the goods are
loaded and his responsibility does not cease until the loading
is complete. Only an "On Board" bill of lading signifies the
completion of the loading of the goods.
c. C.I.F (Cost, Insurance, Freight) indicates that the price
quoted by the seller includes the invoice price plus
insurance and freight. "The seller completes his
performance by procuring the necessary documents (bill
of lading, insurance policy or certificate and invoice plus
any others that may be call for by the particular contract)
and forwarding them to the buyer." A "Received for
Shipment" Bill of Lading is usually appropriate for this
purpose. The insurance in this situation is payable to the
buyer. Hence, the buyer bears the risk of loss while the
goods are in transit.
d. "C & F" (Cost and Freight) if buyer decide to take his own
insurance over the cargo.
e. "F.O.B. Point of Destination." parties may stipulate and
agree that the risk of loss will be retained by the seller
even if the goods are already with the carrier.
Nevertheless, the stipulation (F.O.B., C.I.F., etc.) merely gives
rise to a presumption as to the time when delivery to the
buyer is made. Proof to the contrary may be presented to
prove the real intent of the parties which may be different
from the intent indicated by the notation.
Basic Stipulations
1. Overland Transportation (Art. 350 & 352 COC)
BOL should state: Art 350
a. Name, surname and residence of shipper
b. Name, surname and residence of carrier
c. Name, surname and residence of consignee or to bearer
of sail bill
d. Description of goods (kind, weight, external marks and
signs)
e. Cost of transportation
f. Date of shipment
g. Place of delivery to carrier
h. Place and time of delivery to consignee
i. Indemnity to be paid in case of delay
BOL or tickets shall bear: Art 352
a. Name of carrier
b. Date of shipment
c. Points of departure and arrival
d. Cost
e. Number of packages (baggage)
f. Weight of packages (baggage)
Unweend Notes By: Connie Angela Torregosa
g. Other manifestations necessary for identification
2. Maritime Commerce (Art. 707-718 COC)
BOL shall state:
a. name, registry, and tonnage of the vessel.
b. name of the captain and his domicile.
c. port of loading and unloading.
d. name of the shipper.
e. name of the consignee, if issued to specified person.
f. quantity, quality, number of packages and marks of the
merchandise.
g. The freightage and the primage.
h. Signed within 24 hrs. after receiving on board nu the
captain.
i. 4 copies of the BOL signed by the captain and the shipper
(1. shipper, 2. Captain, 3. Ship agent, 4. Consignee)
3. Electronic Commerce (Electronic Commerce Act of
2000)
Allows the issuance of e-document tickets
Prohibited and Limiting Stipulations (NCC)
Three kinds of limiting stipulations:
1. exempting the carrier from any and all liability for loss
or damage occasioned by its own negligence.
2. providing for an unqualified limitation of such liability
to an agreed valuation.
3. limiting the liability of the carrier to an agreed valuation
unless the shipper declares a higher value and pays a
higher rate of freight.
According to an almost uniform weight of authority, the first
and second kinds of stipulations are invalid as being contrary
to public policy, but the third is valid and enforceable.
Purpose of Limiting Stipulations
Protect the common carrier against unscrupulous shippers
who undervalues the goods in order to avail a lower rate of
freight at the expense of the carrier and claim the real value of
the goods if these goods are damaged.
Stipulation Reducing Diligence.
The parties cannot stipulate so as to totally exempt the carrier
from exercising any degree of diligence; and the parties
cannot stipulate that the common carrier shall exercise
diligence less than the diligence of a good father of a family.
However, the parties may stipulate that the diligence to be
exercised by the common carrier in the carriage of goods be
less than the extraordinary diligence provided that the
following requisites are complied with:
(1) That the stipulation be in writing signed by both parties;
(2) That the stipulation be supported by a valuable
consideration other than the service rendered by the
common carrier; and
(3) That the stipulation be reasonable, just and not contrary
to law.
Reduction of Diligence Not Allowed for Passenger.
11
TRANSPORTATION LAW Based on the Book of Aquino
No such stipulation reducing the degree of diligence to be cause of action against the common carrier: culpa contractual
observed by the carrier is allowed for carriage of passengers. or culpa aquiliana.
(Art. 1757 NCC) cause of action against driver, captain/crew of
vessel/aircraft: culpa delictual or culpa aquiliana.
Stipulations fixing the Limit of Recovery.
The provision reducing the degree of diligence should be The shipowner or the operator, as employer, may be held
distinguished from Article 1750 which involves a stipulation primarily liable under NCC or subsidiarily liable under the
fixing the amount that may be recovered which only requires Revised Penal Code. (vicarious liability- negligence of the
that: employee is imputed to the employer-operator.)
1. It is reasonable and just under the circumstances and
2. It is fairly and freely agreed upon. As to third persons: Solidary liability. If not impleaded-3rd
party complaint.
COGSA
applies suppletorily to the Civil Code if the goods are to be Action for Damages requisites:
shipped from a foreign port to the Philippines. 1. Existence of a perfected contract;
Under the COGSA, the liability of the carrier is US$500 per 2. the breach thereof by the other contracting party;
package in the absence of a shipper's declaration of a higher 3. the damages which he/she sustained due to the breach.
value in the bill of lading. 4. mandatory formal requirements under the Statute of
'The condition is deemed part of the bill of lading even if not Limitations
expressly stated. Section 4[5] of the COGSA
Claim for Damages: (Art. 366 COC)
BOL is negotiable despite stipulation of non-negotiability. Condition precedent to filing an action is a notice of claim
(Art.1507&1510 NCC) (MANDATORY)
Effects OF Negotiation. 1. The claim for damage must be filed immediately if the
A bill of lading is also a symbol of the goods covered by it. damage is apparent; or
Negotiability of an instrument merely indicates that in the 2. The claim for damage must be made within 24 hours
passage of the document of title through the channels of from receipt of the merchandise if the damage is not
commerce, the law regards the property which he document apparent or not ascertained.
describes as following them. Negotiation of the document has
the effect of manual delivery so as to constitute the transferee International Carriage by Sea:
the owner of the goods. 1. If the damage is apparent, the claim should be filed
immediately upon discharge of the goods.
ACTIONS AND DAMAGES IN CASE OF BREACH 2. The claim must be made within 3 days from delivery if
Passengers and shippers who suffered damages because of the damage is not apparent.
the breach of the contractual obligation of the carrier may sue
the latter for damages. The source of obligation is culpa However, regardless of whether the notice of loss or damage
contractual. This source of obligation is separate and distinct has been given, the shipper can still bring an action to recover
from quasi-delict under Article 2176 of the Civil Code. said loss or damage within one year after the delivery of the
goods.
Point of Culpa CULPA-
Distinction Contractual AQUILIANA RECOVERABLE DAMAGES.
Source of Contract Quasi Delict Damages is the pecuniary compensation, recompense, or
Obligation satisfaction for an injury sustained, or as otherwise expressed,
Liability of EE No Liability there Solidarily Liable the pecuniary consequences which the law imposes for the
being no privity with the breach of some duty or violation of some rights.
of contract Employer
If Common Carrier is in good faith:
Availability of Due diligence in Due diligence in
liable only to pay for the damages that are the natural and
Defenses the selection and the selection and
probable consequences of the breach of the obligation, and
supervision of the supervision of the
which the parties have foreseen or could have reasonably
employee is not a employee is a
foreseen at the time the obligation was constituted.
defense. defense under
If Common Carrier is in bad faith or guilty of gross
Art. 2180.
negligence:
In what capacity Liable as a Liable as an
liable for all damages, whether the same can be foreseen or
liable contracting party. Employer
not.
A negligent act that breaches the contract may give rise to a
liability based on contract as well as quasi-delict under Article
KINDS OF DAMAGES. Art. 2197 NCC
2176 of the Civil Code.

Unweend Notes By: Connie Angela Torregosa 12

TRANSPORTATION LAW Based on the Book of Aquino
(1) Actual or Compensatory (an adequate compensation
only for such pecuniary loss suffered by him as he has
duly proved.
(2) Moral (physical suffering, mental anguish, fright, serious
anxiety, besmirched reputation, wounded feelings,
moral shock, social humiliation, and similar injury.)
(3) Nominal (instances when the vindication or recognition
of the plaintiffs right is of the utmost important)
(4) Temperate or moderate (which are more than nominal
but less than compensatory damages, may be recovered
when the court finds that some pecuniary loss has been
suffered but its amount cannot, from the nature of the
case, be provided with certainty.)
(5) Liquidated (those agreed upon by the parties to a
contract, to be paid in case of breach thereof)
(6) Exemplary or Corrective
Requisites:
a. They may be imposed by way of example in
addition to compensatory damages, and only
after the claimant's right to them has been
established;
b. They cannot be recovered as a matter of right,
their determination depending upon the amount
of compensatory damages that may be awarded
to the claimant;
c. The act must be accompanied by bad faith or
done in wanton, fraudulent, oppressive or
malevolent manner.
MARITIME LAW
GENERAL CONCEPTS
MARITIME LAW: Defined.
- Synonymously with Admiralty Law.
- It is the system flaws which "particularly relates to the
affairs and business of the sea, to ships, their crews and
navigation, and to marine conveyance of persons and
property."
- It has also been defined as "a corpus of rules, concepts,
and legal practices governing certain centrally important
concerns of the business of carrying goods and
passengers by water."
- It is that system of law which particularly relates to
marine commerce and navigation, to business transacted
at sea or relating to navigation, to ships and shipping, to
seamen, to the transportation of persons and property by
sea and to marine affairs generally."
Governing Laws:
1. New Civil Code – primary law on provisions on
common carriers. The Code of Commerce and special
laws apply only suppletorily.
2. Book III Code of Commerce – applied suppletorily
3. Maritime Treaties and Conventions- Ex.: UNCLOS,
SOLAS 1974, Tonnage Convention 1969)
4. Special Laws
a. Salvage Law (Act No. 2616)
Unweend Notes By: Connie Angela Torregosa
b. Carriage of Goods by Sea Act (CA No. 65)
c. Ship Mortgage Decree of 1978 (PD 1521)
REAL AND HYPOTHECARY NATURE OF MARITIME
LAW
The spirit of the Code of Commerce is accurately set forth in
a treatise of Madriaga on maritime law.
Philippine Shipping Company, et al. vs. Vergara
That which distinguishes the maritime from the civil law
and even from the mercantile law in general is the real and
hypothecary nature of the former protecting: interests of
the vessel and of the agent, those of the owners of the cargo
and consignees, those who salvage the ship, those who
make loans upon the cargo, those ot the sailors and
members of the crew as to their wages, and those of a
constructor as to repairs made to the vessel.
Evidence of this “real “nature of maritime law:
• The limitation of the liability of the agents to the actual
value of the vessel and the freight money
• The right to retain the cargo and the embargo
• detention of the vessel even cases where the ordinary
civil law would not allow more than a personal action
against the debtor or person liable
This repeals the civil law to such extent that, in certain
cases where the mortgaged property is lost no personal
action lies against the owner or agent of the vessel
Two reasons why it is impossible to do away with these
privileges:
• The risk to which the thing is exposed
• The real nature of maritime law, exclusively real,
according to which the liability of the parties is limited
to a thing to which is at mercy of the waves
LIMITED LIABILITY RULE:
- No Vessel, No Liability.
The shipowner's or agent's liability is merely co-extensive
with his interest in the vessel such that a total loss thereof
results in its extinction. The total destruction of the vessel
extinguishes maritime liens because there is no longer any res
to which it can attach. (Monarch Insurance Co., Inc. v. CA)
- (Aboitiz vs. General Accident Fire and Life Assurance)
Aboitiz Shipping Corporation vs. General Accident Fire
and Life Assurance Corporation, Ltd.
The real and hypothecary nature of maritime law simply
means that the liability of the carrier in connection with
losses related to maritime contracts is confined to the
vessel, which is hypothecated for such obligations or which
stands as the guaranty for their settlement. It developed by
reason of the conditions and risks attending maritime trade
in its earliest years when such trade was replete with
innumerable and unknown hazards since vessels had to go
through largely uncharted waters to ply their trade. It was
designed to offset such adverse conditions and to
encourage people and entities to venture into maritime
commerce despite the risks and the prohibitive cost of
shipbuilding. Thus, the liability of the vessel owner and
agent arising from the operation of such vessel were
confined to the vessel itself, its equipment, freight, and
13
TRANSPORTATION LAW Based on the Book of Aquino
insurance, if any, which limitation served to induce
capitalists into effectively wagering their resources against
the consideration of the large profits attainable in the trade.
The Limited Liability Rule in the Philippines is taken up in
Book III of the Code of Commerce, particularly in Articles
587, 590, and 837.
Rationale
Monarch Insurance Co., Inc. v. CA
The principle has not been rendered obsolete the advances
in modern technology which considerably lessen the risks
involved in maritime trade.
This doctrine is based on the real and hypothecary nature
of maritime law which has its origin in the prevailing
conditions of the maritime trade and sea voyages during
the medieval ages, attended by innumerable hazards and
perils. To offset against these adverse conditions and to
encourage shipbuilding and maritime commerce, it was
deemed necessary to confine the liability of the owner or
agent arising from the operation of a ship to the vessel,
equipment, and freight, or insurance, if any."
Real – similar to transactions over real property where to
effect against third persons, registration is necessary
Hypothecary – the liability of the owner of the value of the
vessel is limited to the vessel itself
Statutory Provisions providing for the limited liability rule
are Articles 587 (liability to third persons), 643 and 837
(collision cases) of the Code of Commerce
ARTICLE 587. The ship agent shall also be civilly liable for
the indemnities in favor of third persons which may arise
from the conduct of the captain in the care of the goods
which he loaded on the vessel; but he may exempt. himself
therefrom by abandoning the vessel with all her
equipments and the freight it may have earned during the
voyage.
ARTICLE 643. If the vessel and her cargo should be totally
lost, by reason of capture or wreck, all rights shall be
extinguished, both as regards the crew to demand any
wages whatsoever, and as regards the ship agent to recover
the advances made.
If a portion of the vessel or of the cargo, or of both, should
be saved, the crew engaged on wages, including the
captain, shall retain their rights on the salvage, so far as
they go, on the remainder of the vessel as well as on the
amount of the freightage of the cargo saved; but sailors
who are engaged on shares shall not have any right
whatsoever on the salvage of the hull, but only on the
portion of the freightage saved. If they should have worked
to recover the remainder of the shipwrecked vessel, they
shall be given from the amount of the salvage an award in
proportion of the efforts made and to the risks, encountered
in order to accomplish the salvage.
ARTICLE. 837. The civil liability incurred by the
shipowners in the cases prescribed in this section, shall be
understood as limited to the value of the vessel with all her
appurtenances and freight earned during the voyage.
Unweend Notes By: Connie Angela Torregosa
COVERAGE OF LIMITED LIABILITY RULE:
(1) liability to third persons,
(2) acts of the captain,
(3) collisions
(4) Action of Insurer in Subrogation against the shipowner.
Aboitiz Shipping Corporation v. General Accident Fire
and Life Assurance Corporation Ltd
While Articles 587 and 590 embody the universal principle
of limited liability in ALL cases. However, taken together
with related articles, Articles 837, 587 and 590 cover only:
(1) liability to third persons, (2) acts of the captain," and
(3) collisions.
Chua Yek Hong v. IAC
In connection with Article 587, the carrier cannot invoke
Articles 1733 and 1735 of the Civil Code. While the primary
law governing the instant case is the Civil Code, in all
matters not regulated by said Code, the Code of Commerce
and other special laws shall govern. Since the Civil Code
contains no provision regulating liability of shipowners or
agents in the event of total loss or destruction of the vessel,
it is the provisions of the Code of Commerce, particularly
Article 587, that govern.
Guison v. Philippine Shipping Company
This involves the collision at the mouth of the Pasig River
between the motor launches Martha and Manila H in which
the latter was found to be at fault, the Supreme Court,
applying Article 837 of the Code of Commerce limited the
liability of the agent to the value of the vessel.
Yangco v. Lasernas
A steamer SS "Negros" belonging to Yangco which after
two hours of sailing from Romblon to Manila encountered
rough seas as a result of which it capsized such that many
of its passengers died in the mishap, several actions for
damages were filed against Yangco for the death of the.
After rendition of the judgment for damages against
Yangco, by a verified pleading, he sought to abandon the
vessel to the plaintiffs in the three cases together with all
the equipment without prejudice to the right to appeal.
Held:
If the shipowner or agent may in any way be held civilly
liable at all for injury to or death of passengers arising from
the negligence of the captain in cases of collisions or
shipwrecks, his liability is merely co-extensive with his
interest in the vessel such that a total loss thereof results in
its extinction. In arriving at this conclusion, we have not
been unmindful of the fact that the ill-fated steamship
Negros, as a vessel engaged in interisland trade, is a
common carrier, and that the relationship between the
petitioner and the passengers who died in the mishap rests
on a contract of carriage. But assuming that petitioner is
liable for a breach of contract of carriage, the exclusively
'real and hypothecary nature' of maritime law operates to
limit such liability to the value of the vessel, or to the
insurance thereon, if any.
14
TRANSPORTATION LAW Based on the Book of Aquino
In the instant case it does not appear that the vessel was
insured. Whether the abandonment of the vessel sought by
the petitioner in the instant case was in accordance with
law or not, is immaterial. The vessel having totally
perished, any act of abandonment would be an idle
ceremony.
If the vessel is co-owned, the limited liability to third persons
shall be satisfied by the co-owners:
ARTICLE. 590. The co-owners of the vessel shall be civilly
liable in the proportion of their contribution to the common
fund for the results of the acts of the captain, referred to in
Article 587.
Each co-owner may exempt himself from this liability by
the abandonment, before a notary, of that part of the vessel
belonging to him.
EXCEPTIONS TO LIMITED LIABILITY:
(1) where the injury or death to a passenger is due either to
the fault of the shipowner, or to the concurring
negligence of the shipowner and the captain;
(2) where the vessel is insured;
Limited liability rule does not apply to insurance claims
because the total loss of the vessel did not extinguish the
liability of the carrier's insurer. The insurance answers for the
damages that a shipowner or agent, may be held liable for by
reason of the death of its passengers. (Vasquez v. CA)
(3) in workmen's compensation claims.
(4) the total destruction of the vessel (although it
extinguishes a maritime lien, as there is no longer any
risk to which it can attach) does not affect the liability of
the owner for repairs of the vessel completed before its
loss.
(5) negligence of shipowner and agent.
Ex.: Failure to maintain the seaworthiness of the vessel and
"authorizing the voyage notwithstanding its knowledge of a
typhoon. (Loadstar Shipping Co., Inc. v. CA)
Negros Navigation Co. Inc. v. CA
The carrier is liable for the damages to the full extent and
not up to the value of the vessel if it was established that
the carrier was guilty of negligence in allowing the captain
and crew to play mahjong during the voyage, in failing to
maintain the ship as seaworthy and in allowing the ship to
carry more passengers than it was allowed to carry.
BURDEN OF PROOF: (to invoke limited liability rule)
The carrier or shipowner has the burden of showing that it
exercised extraordinary diligence in the transport of the goods
it had on board
The carrier has the burden of proving that the
unseaworthiness of its vessel was not due to its fault or
negligence, otherwise, the doctrine of limited liability cannot
be applied.
ABANDONMENT.
An indispensable requirement before the shipowner or ship
agent can enjoy the benefits of the limited liability principle.
Unweend Notes By: Connie Angela Torregosa
If the carrier does not want to abandon the vessel, then he is
still liable even beyond the value of the vessel.
Abandonment is dispensed with is when the vessel was
entirely lost. In such case, the obligation is thereby
extinguished.
PROBLEMS:
1. Pablo Esparadon, a duly-licensed ship captain of the
M/V Don Jose was drunk while he was on duty as such,
and while M/V Don Jose was sailing from Manila to the
Visayas. As a consequence, thereof, the M/V Don Jose
rammed another vessel near Corregidor, causing both
vessel to sink completely and thus become total losses. The
cargo owner of both sunken vessels sued the owner of the
M/ Don Jose for their losses. Is the ship owner of M/V Don
Jose liable? Explain your answer?
A:
No. The shipowner of M/ Don Kose is no longer liable
because of the total loss of the vessel. Generally, the
shipowner is liable for the negligence of the captain in
collision cases. However, the liability is limited to the value
of the vessel. In other words, the civil liability for collision
is merely co-existent with his interest in the vessel; since
there was total loss, his liability is also extinguished.
2. Toni, a copra dealer, loaded 1,000 sacks of copra on board
the vessel M/V Tonichi (a common carrier engaged in
coastwise trade owned by Ichi) for shipment from Puerto
Galera to Manila. The cargo did not reach Manila because
the vessel capsized and sank with all its cargo. When Toni
sued Ichi for damages based on breach of contract, the
latter invoked the "limited liability rule." a) What do you
understand of the rule invoked by Ichi? b) Are there
exceptions to the limited liability rule?
A: a) "Limited liability rule" means that the liability of a
shipowner for damages in case of loss is limited to the value
of his vessel. If the ship is totally lost, his liability is
extinguished. If the ship or part thereof still exists, he can
escape liability by abandoning the vessel, its appurtenances
and its freight. The other properties of the shipowner
cannot be reached by the persons entitled to damages.
b) Yes, there are exceptions. The exceptions to the limited
liability rule are: (1) where the injury or death to a
passenger is due either to the fault of the shipowner, or to
the concurring negligence of the shipowner and the
captain; (2) where the vessel is insured; (3) in workmen's
compensation claims; and (4) expenses for repairs and
provisioning of the ship prior to the departure thereof.
3. X, a rich trader, boarded the M/V Cebu, a small vessel
within a value of P 3M and owned by Y, plying the route
Cotabato to Pagadian City. X had in his possession a
diamond worth P5M. The vessel has a capacity of 40
passengers. Near Pagadian, the vessel met squally weather
and was hit by six-foot waves every three seconds. Soon,
water entered the engine room and the hull of the vessel.
The patron of the vessel ordered the distribution of life
belts to the passengers. He told them the vessel was sinking
and for them to take care of themselves. The vessel turned
15
TRANSPORTATION LAW Based on the Book of Aquino
out to be overloaded by 20 passengers and had no sufficient
life belts. X failed to get a life belt and died when the vessel
totally sunk. The heirs of X sued Y for P 10M damages. Y
raised the defense of limited liability. Decide.
A: Y cannot invoke the defense of limited liability. The
doctrine of limited liability does not apply when death or
injury or damage sustained is attributable to the fault or
negligence of the ship owner or ship agent and the captain
(or patron) of the vessel. In this case, the shipowner appears
to be guilty of fault or negligence because he did not make
certain that the passenger vessel is not overloaded and he
failed to provide sufficient life belts on board the vessel.
(1989)
4. Captain Hook, the ship captain of M/ Peter Pan,
overloaded the M/V Peter Pan, as a consequence of which
the vessel sank in the middle of the Sulu Sea, and nothing
whatsoever was recovered. The owners of the cargo and
the heirs of the three passengers of the vessel filed an action
for damages in the amount of P500,000 against Mr.
Wendy, the owner. Will the action prosper? Reasons.
The action will not prosper. The shipowner can escape
liability by abandoning the vessel. This right of
abandonment applies not only to collisions and shipwreck
but in the latter case only for unpaid wages (Arts. 643 and
838, Code of Commerce). However, if the shipowner or
ship agen knew or are expected to know the overloading,
then the limited liability rule cannot be applied.
5. X shipping Company spent almost a fortune in refitting
and repairing its luxury passenger vessel, the MV Marina,
which plied the inter-island routes of the company from
La Union in the north to Davao City in the south. The MV
Marina met an untimely fate during its post-repair
voyage. It sank off the coast of Zambales while en route to
La Union from Manila. The investigation showed that the
captain alone was negligent. There were no casualties in
that disaster. Faced with a claim for the payment of the
refitting and repair, X Shipping Company asserted
exemption from liability on the basis of the hypothecary
or limited liability rule under Article 587 of the Code of
Commerce. Is X Shipping Company's assertion valid?
Explain.
A: No. The assertion of X Shipping Company is not valid.
The liability of the ship owner for repairs on the vessel
accrued before the loss of the vessel. In fact the repairs
were completed before is loss. Hence, the limited liability
rule does not apply.
6. MV Mariposa, one of five passenger ships owned by
Marina Navigation Co., sank off the coast of Mindoro
while en route to Iloilo City. More than 200 passengers
perished in the disaster. Evidence showed that the ship
captain ignored typhoon bulletins issued by Pag-asa
during the 24-hour period immediately prior to the
vessel's departure from Manila. The bulletins warned all
types of sea crafts to avoid the typhoon's expected path
near Mindoro. To make matters worse, he took more load
than was allowed for the ship's rated capacity. Sued for
Unweend Notes By: Connie Angela Torregosa
damages by the victim's surviving relatives, Marina Nav.
Co contented 1) that its liability, if any, had been
extinguished with the sinking of MV Mariposa; 2) that
assuming it had not been so extinguished, such liability
should be limited to the loss of the cargo. Are these
contentions meritorious in the context of applicable
provisions of the Code of Commerce?
A. No. The contentions of Marina Nav. Co. are not
meritorious.
The problem states that the there was already a PAG-Asa
bulletin within one day before the departure of the vessel.
In addition, there was also overloading. It is therefore
believed that the shipowner itself did not exercise
extraordinary diligence. It is believed that the negligence
cannot be ascribed entirely to the captain. Although the
captain of MV Mariposa was negligent in ignoring the
typhoon bulletins issued by PAGASA and in overloading
the vessel, it is believed that the shipowner cannot escape a
finding of negligence. Therefore, the shipowner cannot
invoke the doctrine of limited liability.
PROTESTS
It is the written statement by the master of a vessel or any
authorized officer, attested by proper officer or a notary, to
the effect that damages has been suffered by the ship.
Required under the Code of Commerce in the ff cases:
10. When the vessel makes an arrival under stress. (Art. 612
COC)
11. Where the vessel is shipwrecked. (Art. 612, 624 and 843
COC)
12. Where the vessel has gone through a hurricane or the
captain believes that the cargo has suffered damages or
averages. (Art. 624 COC)
13. Maritime collisions. (Art. 835 COC)
PROBLEM:
Q: Two vessels figured in a collision along the Straits of
Guimaras resulting in considerable loss of cargo. The
damaged vessels were safely conducted to the Port of Iloilo.
Passenger A failed to file a maritime protest. B, a non-
passenger but a shipper who suffered damage to his cargo,
likewise did not file a maritime protest at all.
a. What is a maritime protest?
b. Can A and B successfully maintain and recover losses
and damages arising from the collision? Reason
briefly.
A: (a) Protest is the written statement by the master of a
vessel or any authorized officer, attested by proper officer
or a notary, to the effect that damages has been suffered by
the ship. In collisions, the maritime protest must be made
within 24 hrs after a collision and the circumstances of the
collision are declared or made known before a competent
authority at the point of accident or the first port of arrival
if in the Philippines or the Philippine consul in a foreign
country.
(b) B can recover their losses and damages arising from the
collision while A cannot recover from the collision. B
cannot be expected to know the circumstances regarding
16
TRANSPORTATION LAW Based on the Book of Aquino
the collision; hence, a maritime protest is not required.
However, A, the passenger, knows the circumstances of
the collision, hence, he cannot maintain an action if he did
not file a maritime protest as provided for under Article
863 of the Code of Commerce.
ADMIRALTY JURISDICTION
Section 19(3) of BP Blg. 129.
RTC has jurisdiction:
(3) In all actions in admiralty and maritime jurisdiction
where the demand or claim exceeds Three hundred
thousand pesos (P300,000.00) or, in Metro Manila, where
such demand or claim exceeds Four hundred thousand
pesos (P400,000.00).
This means that all other cases where the amount of the
demand or claim is less than the jurisdictional amount in the
Regional Trial Court, the jurisdiction over admiralty and
maritime cases are with the Metropolitan Trial Court,
Municipal Trial Court or Municipal Circuit Trial Court as the
case may be.
Crescent Petroleum Ltd. v. M/V Lok Maheshwari et. al.
The two (2) tests have been used to determine whether a
case involving a contract comes within the admiralty and
maritime jurisdiction of a court - the locational test and the
subject matter test. The English rule follows the locational
test wherein maritime and admiralty jurisdiction, with a
few exceptions, is exercised only on contracts made upon
the sea and to be executed thereon. This is totally rejected
under the American rule where the criterion in
determining whether a contract is maritime depends on the
nature and subject matter of the contract, having reference
to maritime service and transactions." In International
Harvester Company of the Philippines v. Aragon, the
Supreme Court adopted the American rule and held that
"(whether or not a contract is maritime depends not on the
place where the contract is made and is to be executed,
making the locality the test, but on the subject matter of the
contract, making the true criterion a maritime service or a
maritime transaction."
FORFEITURE DUE TO SMUGGLING
The penalty of forfeiture is imposed on any vessel engaged in
smuggling under Section 2530 of the Tariff and Custom Code,
provided that the following conditions are present:
(1) The vessel is "used unlawfully in the importation or
exportation of articles into or from" the Philippines;
(2) The articles are imported to or exported from "any
Philippine port or place, except a port of entry;" or
(3) If the vessel has a capacity of less than 30 tons and is
"used in the importation of articles into any Philippine
port or place other than a port of the Sulu Sea, where
importation in such vessel may be authorized by the
Commissioner, with the approval of the department
head." (El Greco Ship Manning and Management
Corporation v. Commissioner of Customs)
MARINE POLLUTION
Unweend Notes By: Connie Angela Torregosa
Sec. 2 PD 979. It is hereby declared a national policy to
prevent and control the pollution of seas by the dumping
of wastes and other matter which create hazards to human
health, harm living resources and marine life, damage
amenities, or interfere with the legitimate uses of the sea
within the territorial jurisdiction of the Philippines.
Sec. 3 PD 979. Definitions of the terms:
(1) Discharge includes, but is not limited to, any spilling,
leaking, pumping, pouring, emitting, emptying or
dumping but does not include discharge of effluent
from industrial or manufacturing establishments, or
mill of any kind.
(2) Dumping means any deliberate disposal at sea and
into navigable waters of wastes or other matter from
vessels, aircraft, platforms or other man-made
structures at sea, including the disposal of wastes or
other matter directly arising from or related to the
exploration, exploitation and associated off-shore
processing of sea bed mineral resources unless the
same is permitted and/or regulated under the decree.
Dumping at it does not mean a disposition of any
effluent from any outfall structure to the extent that
such disposition is regulated under the provisions of
Republic Act 3931 nor does it mean a routine
discharge of effluent or other matter incidental to the
propulsion of, or derived from the normal operations
of vessels, aircraft, platforms or other man-made
structures at sea and their equipment.
(3) Oil means oil of any kind or in any form including,
but not limited to, petroleum, fuel oil, sludge, oil
refuse, and oil mixed with wastes other than dredge
spoil.
(4) Navigable Waters means the waters of the Philip-
pines, including the territorial sea and inland waters
which are presently, or be in the future susceptible for
use by watercraft.
(5) Vessel means every description of watercraft, or other
artificial contrivance used, or capable of being used,
as a means of transportation on water.
(6) Refuse means garbage, waste, wood residues, sand,
lime cinder ashes, offal, nightsoil, tar, dye stuffs, acids,
chemicals and substances other than sewage and
industrial wastes that may cause pollution.
PROHIBITED ACTS
Sec. 4 PD 979. It shall be unlawful for any person to:
(1) Discharge, dump, or suffer, permit the discharge of
oil, noxious gaseous and liquid substances and other
harmful substances from or out of any ship, vessel,
barge, or any other floating craft, or other man-made
structures at sea, by any method, means or manner,
into or upon the territorial and inland navigable
waters of the Philippines;
(2) Throw, discharge or deposit, dump, or cause, suffer or
procure to be thrown, discharged, or deposited either
from or out of any ship, barge, or other floating craft
or vessel of any kind, or from the shore, wharf,
manufacturing establishment, or mill of any kind, any
refuse matter of any kind or description whatever
17
TRANSPORTATION LAW Based on the Book of Aquino
other than that flowing from streets and sewers and
passing therefrom in a liquid state into tributary of
any navigable water from which the same shall float
or be washed into such navigable water; and
(3) Deposit or cause, suffer or procure to be deposited
material of any kind in any place on the bank of any
navigable water, or on the bank of any tributary of any
navigable water, where the same shall be liable to be
washed into such navigable water, either by ordinary
or high tides, or by storms or floods, or otherwise,
whereby navigation shall or may be impeded or
obstructed or increase the level of pollution of such
water.
Exempted from the prohibited acts are:
"cases of emergency imperiling life or property, or
unavoidable accident, collision, or stranding or in any cases
which constitute danger to human life or property or a real
threat to vessels, aircraft, platforms, or other man-made
structure, or if dumping appears to be the only way of
averting the threat and if there is probability that the
damage consequent upon such dumping will be less than
would otherwise occur, and except as otherwise permitted
by regulations prescribed by the National Pollution
Control Commission or the Philippine Coast Guard.
MARINE INSURANCE
MARINA Memorandum Circular Nos. 09-18 and 09-21,
domestic shipping operators are required to secure insurance
coverage for maritime accidents. The requirement covers
domestic carriers and operators of passenger ships engaged
in domestic shipping who are carrying passengers.
Compulsory coverage includes the following:
Persons Amount of Risk Insured
Covered Coverage Against Nature of
Compensations
Passengers P200,000.00 per Death
passenger
Unmanifested P200,000.00 per Death
Passengers passenger
Survivors P50,000.00 Survivorship
Coverage/
Monetary
Assistance
Surviving P50,000.00 per Monetary
Passengers passenger Assistance
Par. III, MARINA Memorandum Circular No. 09-18. The
survivorship insurance coverage for survivors and the
monetary assistance for surviving passengers both in the
amount of P50,000.00 shall be over and above the medical
and hospitalization expenses and reasonable incidental
expenses for burial, travel, transfer, food, clothing, board
and lodging expenses covered by receipts.
Par. II, MARINA Memorandum Circular No. 09-18. While
only passengers with valid tickets shall be allowed to board
the ships, the term passengers for purposes of applying the
rules on mandatory insurance includes any person while
embarking on, on board, or disembarking from the ship. It
includes passengers who are ticketed, unticketed,
Unweend Notes By: Connie Angela Torregosa
manifested, anmanifested, paying, non-paying, minor,
holding discounted or complimentary tickets, and/or
accommodated passengers, including those accompanying
cargoes, animals or vehicle covered by a contract of
transportation.
MARINA Memorandum Circular No. 09-21. Maritime
accidents refer to an event which involves a fire, explosion,
grounding, collision/contact/capsizing/tilting, sinking,
and other similar occurrences resulting in death.
VESSELS
Section 3 [b], P.D. No. 474. A vessel or watercraft is any
barge, lighter, bulk carrier, passenger ship freighter, tanker,
container ship, fishing boats, or other artificial contrivance
utilizing any source of motive power, designed, used or
capable of being used as a means of transportation
operating either as a common contract carrier, including
fishing vessels covered under Presidential Decree No. 43,
except: (i) those owned and/or operated by the Armed
Forces of the Philippines and by foreign governments for
military purposes, and (i) bancas, sailboats and other
waterborne contrivance of less than three gross tons
capacity and not motorized.
"Ship" or "Vessel"
- may be used interchangeably.
- Any kind, class or type of craft or artificial contrivance
capable of floating in water, designed to be used, or
capable of being used as a means of water transport in
the domestic trade for the carriage of passengers or
cargo, or both, utilizing its own motive power or that of
another. (Section 3 (f), RA 9295)
KINDS OF VESSELS:
1. A passenger ship is a ship which carries more than
twelve passengers.
2. A cargo ship is any ship which is not a passenger ship.
3. A tanker is a cargo ship constructed or adapted for the
carriage in bulk of liquid cargoes of an inflammable
nature.
4. A fishing vessel is a vessel used for catching fish,
whales, seals, walrus or other living resources of the sea.
5. A nuclear ship is a ship provided with a nuclear power
plant.
6. "New ship" means a ship the keel of which is laid or
which is at a similar stage of construction on or after the
date of coming into force of the SOLAS 1974.
7. "Existing ship" means a ship which is not a new ship.
Lopez v. Duruelo
On February 10, 1927, the plaintiff, who is a resident of the
municipality of Silay, Occidental Negros, was desirous of
embarking upon the interisland steamer San Jacinto in
order to go to Iloilo. This boat was at the time in the
anchoring ground of the port of Silay, some half a mile
distant from the port. The plaintiff therefore embarked at
the landing in the motor boat Jison, which was then
18
TRANSPORTATION LAW Based on the Book of Aquino
engaged in conveying passengers and luggage back and
forth from the landing to boats at anchor, and which was
owned and operated by the defendant Albino Jison, with
Juan Duruelo as patron. The engineer (maquinista) aboard
on this trip was one Rodolin Duruelo, a boy of only 16 years
of age. He is alleged to have been a mere novice without
experience in the running of motor boats; and the day of
the occurrence now in contemplation is said to have been
the third day of his apprenticeship in this capacity. It is
alleged that the Jison, upon this trip, was grossly overladen,
having aboard fourteen passengers, while its capacity was
only for eight or nine.
As the motor boat approached the San Jacinto in a perfectly
quiet sea, it came too near to the stern of the ship, and as
the propeller of the ship had not yet ceased to turn, the
blades of the propeller struck the motor boat and sank it at
once. It is alleged in the complaint that the approach of the
Jison to this dangerous proximity with the propeller of the
San Jacinto was due to the fault, negligence and lack of skill
of the defendant Juan Duruelo, as patron of the Jison. As
the Jison sank, the plaintiff was thrown into the water
against the propeller, and the revolving blades inflicted
various injuries upon him, consisting of a bruise in the
breast, two serious fractures of the bones of the left leg, and
a compound fracture of the left femur. As a consequence of
these injuries the plaintiff was kept in bed in a hospital in
the City of Manila from the 28th of February until October
19 of the year 1927, or approximately eight months. The
plaintiff then filed an action for damages against the
defendant. The defendant moved to dismiss the complaint
on the ground that the complaint does not allege that a
protest had been presented by the plaintiff, within twenty-
four hours after the occurrence, to the competent authority
at the port where the accident occurred in accordance to
Article 835 of the Code of Commerce.
Is protest under Article 835 necessary?
No, protest is not necessary. Article 835 referred to was not
intended to include all ships, craft or floating structures of
every kind without limitation, and the provisions of that
section should not be held to include minor craft engaged
only in river and bay traffic. Vessels which are licensed to
engage in maritime commerce, or commerce by sea,
whether in foreign or coastwise trade, are no doubt
regulated by he Code of Commerce. Other vessels of a
minor nature not engaged in maritime commerce, such as
river boats and those carrying passengers from ship to
shore, must be governed, as to their liability to passengers,
by the provisions of the Civil Code or other appropriate
special provisions of law.
CONSTRUCTION, EQUIPMENT AND MANNING
The construction, equipment and manning of vessels are
subject to the rules issued by the MARINA and Coast Guard
and pertinent conventions like SOLAS 1974 as well as the
Code of Commerce.
ARTICLE 574. COC. Builders of vessels may employ the
materials and follow, with respect to their construction and
rigging, the systems most suitable to their interests. Ship
Unweend Notes By: Connie Angela Torregosa
owners and seamen shall be subject to what the laws and
regulations of the public administration on navigation,
customs, health, safety of vessels, and other similar
matters.
Load Lines Convention 1966. adhered to by the Philippines
in 1969 provides for uniform rules with respect to the limits
to which ships on international voyages may be loaded
having regard to the need for safeguarding life and property
at sea.
Tonnage Convention, 1969. adhered to in 1982, provides for
rules for the determination of tonnage of ships engaged in
international voyages.
Article 2 (4) & (5), Tonnage Convention, 1969.
"gross tonnage" means the measure of the overall size of a
ship while
"net tonnage" means the measure of the useful capacity of
a ship.
VESSEL AS A PERSONAL PROPERTY
Article 416. NCC. Vessels are personal property
ARTICLE 585 COC. For all purposes of law not modified
or restricted by the provisions of this Code, vessels shall
continue to be considered as personal property.
This indicates that there are rules that are applicable to
Common Carriers which are similar to the rules that apply to
real estate.
"ships or vessels, whether moved by steam or by sail, partake,
to a certain extent, of the nature and conditions of real
property, on account of their value and importance in the
world commerce." (Rubiso and Calixto v. Rivera)
Philippine Refining Company U. Jarque
"Vessels are considered personal property under the civil
law. (Code of Commerce, Article 585.) Similarly, under the
common law, vessels are personal property under the
common law, vessels are personal property. although
occasionally referred to as a peculiar kind of personal
property. Since the term "personal property" includes
vessels, they are subject to mortgage agreeably to the
provisions of the Chattel Mortgage Law. Indeed, it has
heretofore been accepted without discussion that a
mortgage on a vessel is in nature a chattel mortgage
Indeed, it has heretofore been accepted without discussion
that a mortgage on a vessel is in nature a chattel mortgage
registry of the register of deeds, but it is essential that a
record of documents affecting the title to a vessel be entered
in the record of the Collector of Customs at the port of entry
Otherwise a mortgage on a vessel is generally like other
chattel mortgages as to its requisites and validity
ACQUISITION
Vessels may be sold, donated and may even be acquired
through prescription.
ARTICLE 712. NCC. Ownership and other real rights over
property are acquired and transmitted by law, by donation,
by estate and intestate succession, and in consequence of
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TRANSPORTATION LAW Based on the Book of Aquino
certain contracts, by tradition, by occupation and by means
of prescription.
Theory of Mode and Title
Ownership is acquired by another only if mode and title
concur.
Mode is the specific cause which gives rise to them, as the
result of the presence of a special condition of things, of the
aptitude and intent of persons, and of compliance with the
conditions established by law. This is the proximate cause of
the acquisition.
Title is the juridical justification for the acquisition or a
transfer of ownership or other real right. This is the remote
cause of the acquisition.
Additionally, vessels that are under the jurisdiction of the
MARINA can be transferred only with notice to said
administrative agency.
A. PRESCRIPTION
ARTICLE 573. COC. Merchant vessels constitute property
which may be acquired and transferred by any of the
means recognized by law. The acquisition of a vessel must
appear in a written instrument, which shall not produce
any effect with respect to third persons If not inscribed in
the registry of vessels.
The ownership of a vessel shall likewise be acquired by
possession in good faith, continued for three years, with a
just title duly recorded.
In the absence of any of these requisites, continuous
possession for ten years shall be necessary in order to
acquire ownership.
A captain may not acquire by prescription the vessel of
which he is in command.
Types Of Acquisitive Prescription
1. Ordinary Prescription.
Requisites:
a. The person who claims ownership must be in
continuous possession;
b. Possession must be for a period of three (3) years;
and
c. Possession must be in good faith. (Possession in
good faith presupposes possession in the concept of
an owner. Contrarily, he is in bad faith if he acted
knowing that he is not the owner of the subject land
or knowing that there is a flaw in his title.)
2. Extraordinary Prescription.
If the possessor is in bad faith, the acquisitive
prescription is extra-ordinary and the prescriptive
period is 10 years.
B. SALE
In a contract of sale, the mode of transferring title or
ownership is tradition or delivery. The same applies to
vessels. However, the sale must be registered with the
MARINA to affect third persons.
1. Voluntary Sale of Vessels – Art. 576, 577 and 578 (1) and
(2). COC.
2. when the vessel is rendered useless for navigation – Art.
578 and 579 (3) & (4) COC.
Unweend Notes By: Connie Angela Torregosa
3. When repair of vessel is no longer possible - Article 579.
4. Sale of vessels in a foreign port - Art. 578. COC
ARTICLE 576. COC. In the sale of a vessel, it shall always
be understood as included the rigging, masts, stores and
engine of a streamer appurtenant thereto, which at the time
belongs to the vendor.
The arms, munitions of war, provisions and fuel shall not
be considered as included in the sale.
The vendor shall be under the obligation to deliver to the
purchaser a certified copy of the record sheet of the vessel
in the registry up to the date of the sale.
ARTICLE 577. COC. If the alienation of the vessel should
be made while It is on a voyage, the freightage which It
earns from the time It receives Its last cargo shall pertain
entirely to the purchaser, and the payment of the crew and
other persons who make up its complement for the same
voyage shall be for his account.
If the sale Is made after the vessel has arrived at the port of
its destination, the freightage shall pertain to the vendor,
and the payment of the crew and other individuals who
make up its complement shall be for his account, unless the
contrary is stipulated in either case.
ARTICLE 578. COC. If the vessel being on a voyage or in a
foreign port, its owner or owners should voluntarily
alienate it, either to Filipinos or to foreigners domiciled in
the capital or in a port of another country, the bill of sale
shall be executed before the consul of the Republic of the
Philippines at the port where it terminates its voyage and
sold instrument shall produce no effect with respect to
third persons if it is not inscribed in the registry of the
consulate. The consul shall immediately forward a true
copy of the Instrument of purchase and sale of the vessel to
the registry of vessels of the port where said vessel Is
inscribed and registered.
In every case the alienation of the vessel must be made to
appear with a statement of whether the vendor receives Its
price in whole or In part, or whether he preserves in whole
or in part any claim on said vessel. In case the sale Is made
to a Filipino, this fact shall be stated in the certificate of
navigation.
When a vessel, being on a voyage, shall be rendered useless
for navigation, the captain shall apply to the competent
judge on court of the port of arrival, should it be in the
Philippines; and should It be in a foreign country, to the
consul of the Republic of the Philippines, should there be
one, or, where there is none, to the judge or court or to the
local authority; and the consul, or the judge or court, shall
order an examination of the vessel to be made.
If the consignee or the insurer should reside at said port, or
should have representatives there, they must be cited in
order that they may take part In the proceedings on behalf
of whoever may be concerned.
ARTICLE 579. COC. After the damage to the vessel and
the Impossibility of her being repaired, in order to continue
the voyage had been shown, Its sale at public auction shall
be ordered, subject to the following rules:
1. The hull of the vessel, its rigging, engines, stores, and
other articles shall be appraised, after raking an
inventory, said proceedings to be brought to the
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TRANSPORTATION LAW Based on the Book of Aquino
notice of the persons who may wish to take part in the
auction.
2. The order or decree ordering the auction to be held
shall be posted in the usual places, an announcement
thereof to be inserted in the Official Gazette and in
two of the newspapers of the largest circulation of the
port where the auction is to be held, should there be
any.
The period which may be fixed for the auction shall
not be less than twenty days.
3. These announcements shall be repeated every ten
days, and their publication shall be made to appear in
the records.
4. The auction shall be held on the day fixed, with the
formalities prescribed in the common law for judicial
sales.
5. If the sale should take place while the vessel Is In a
foreign country, the special provisions governing
such cases shall be observed.
Co-owner's Rights
If the vessel is sold to third persons, the co-owner is given the
right of redemption.
ARTICLE 575. COC. Co-owners of vessels shall have the
right of repurchase and redemption in sales made to
strangers, but they may exercise the same only within the
nine days following the inscription of the sale in the
registry, and by depositing the price at the same time.
NATIONALITY OF VESSELS
Vessels that are duly registered in the Philippines are
considered Philippine Flag vessels. These ships are deemed
to possess Philippine nationality within the contemplation of
the UNCLOS.
ARTICLE 91. UNCLOS. Nationality of Ships.
1. Every State shall fix the conditions for the grant of its
nationality to ships, for the registration of ships in its
territory, and for the right to fly its flag. Ships have the
nationality of the State whose flag they are entitled to
fly. There must exist a genuine link between the State
and the ship.
2. Every State shall Issue to ships to which it has granted
the right to fly its flag documents to that effect.
Article 92. UNCLOS. Status of ships
1. Ships shall sail under the flag of one State only and,
save in exceptional cases expressly provided for in
international treaties or in this Convention, shall be
subject to its exclusive jurisdiction on the high seas. A
ship may not change its flag during a voyage or while
in a port of call, save in the case of a real transfer of
ownership or change of registry.
2. A ship which sails under the flags of two or more
States, using them according to convenience, may not
claim any of the nationalities in question with respect
to any other State, and may be assimilated to a ship
without nationality.
Article 93. UNCLOS. Ships flying the flag of the United
Nations, its specialized agencies and the International
Atomic Energy Agency.
Unweend Notes By: Connie Angela Torregosa
The preceding articles do not prejudice the question of
ships employed on the official service of the United
Nations, its specialized agencies or the International
Atomic Energy Agency, flying the flag of the organization.
Article 93. UNCLOS. Duties of the flag State
1. Every State shall effectively exercise its jurisdiction
and control in administrative, technical and social
matters over ships flying its flag.
2. In particular every State shall:
a. maintain a register of ships containing the names
and particulars of ships flying its flag, except
those which are excluded from generally accepted
international regulations on account of their small
size; and
b. assume jurisdiction under its internal law over
each ship flying its flag and its master, officers and
crew in respect of administrative, technical and
social matters concerning the ship.
3. Every State shall take such measures for ships flying
its flag as are necessary to ensure safety at sea with
regard, inter alia, to:
a. the construction, equipment and seaworthiness of
ships;
b. the manning of ships, labour conditions and the
training of crews, taking into account the
applicable International Instruments;
c. the use of signals, the maintenance of
communications and the prevention of collisions.
4. Such measures shall Include those necessary to
ensure:
a. that each ship, before registration and thereafter
at appropriate intervals, is surveyed by a
qualified surveyor of ships, and has on board such
charts, nautical publications and navigational
equipment and instruments as are appropriate for
the safe navigation of the ship;
b. that each ship is in the charge of a master and
officers who possess appropriate qualifi-cations,
in particular in seamanship, navigation,
communications and marine engineering, and
that the crew is appropriate in qualification and
numbers for the type, size, machinery and
equipment of the ship;
c. that the master, officers and, to the extent
appropriate, the crew are fully conversant with
and required to observe the applicable
international regulations concerning the safety of
life at sea, the prevention of collisions, the
prevention, reduction and control of marine
pollution, and the maintenance of
communications by radio.
5. In taking the measures called for in paragraphs 3 and
4 each State is required to conform to generally
accepted international regulations, procedures and
practices and to take any steps which may be
necessary to secure their observance.
6. A State which has clear grounds to believe that proper
jurisdiction and control with respect to a ship have not
been exercised may report the facts to the flag State.
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TRANSPORTATION LAW Based on the Book of Aquino
Upon receiving such a report, the flag State shall
investigate the matter and, if appropriate, take any
action necessary to remedy the situation.
7. Each State shall cause an inquiry to be held by or
before a suitably qualified person or persons into
every marine casualty or incident of navigation on the
high seas involving a ship flying its flag and causing
loss of life or serious injury to nationals of another
State or serious damage to ships or installations of
another State or to the marine environment. The flag
State and the other State shall co-operate in the
conduct of any Inquiry held by that other State into
any such marine casualty or incident of navigation.
Rights under the tariff and customs code
Basic privileges conferred by registration:
SECTION 810. Privileges Conferred by Certificate of
Philippine Registry. - A certificate of Philippine registry
confers upon the vessel the right to engage, consistently
with law, in the Philippine coastwise trade and entitles it to
the protection of the authorities and the flag of the
Philippines in all ports and on the high seas, and at the
same time secures to it the same privileges and subjects it
to the same disabilities as, under the laws of the
Philippines, pertain to foreign-built vessels transferred
abroad to citizens of the Philippines.
Registration of vessels under the Philippine Flag is also
required for shipping enterprises engaged in overseas
shipping that wishes to avail of the benefits under the
Philippine Overseas Shipping Development Act or R.A. No.
7471.
SECTION 8. Registration and Deletion of Vessels.
All vessels owned by Philippine shipping enterprises and
availing of the incentives under this Act shall be registered
under the Philippine flag. Said vessels can only be deleted
from the Philippine registry after the MARINA has
determined that:
a. No other Philippine shipping enterprise is interested
in acquiring the vessel; or
b. The vessel has to be scrapped.
Flags of convenience
Article 92 of the UNCLOS provides that there must be a
genuine link between the State and the ship in order to confer
nationality over the ship. There are instances when the
countries may allow registration of vessels belonging to
nationals of other countries.
There is no genuine link between the State and the ship and
the registration is just a matter of convenience, hence, the term
Flags of Convenience. The absence of genuine link is reflected
in either the absence of or minimal regulation of the registered
vessels by the country where the vessels are registered.
The Philippines is not a "Flag of Convenience" country.
REGISTRATION OF VESSELS
Vessels are now registered through MARINA.
As a rule, the person who is the registered owner of the vessel
is presumed to be the owner of the vessel.
Unweend Notes By: Connie Angela Torregosa
Moreover, it is likewise a settled rule that the sale or transfer
of the vessel is not binding on third persons unless the same
is registered.
Fubiso v. Rivera
The requisite of registration on the registry, of the purchase
of a vessel, is necessary and indispensable in order that the
purchaser's rights may be maintained against a claim filed
by a third person. Such registration is required both by the
Code of Commerce and by Act No. 1900. The amendment
solely consisted in charging the Insular Collector of
Customs, as at present, with the fulfillment of the duties of
the commercial register concerning the registering of
vessels; so that the registration of a bill of sale of a vessel
shall be made in the office of the Insular Collector of
Customs, who, since May 18, 1909, has been performing the
duties of the commercial register in place of this latter
official.
In view of said legal provisions, it is undeniable that the
defendant Florentino E. Rivera's rights cannot prevail over
those acquired by Fausto Rubiso in the ownership of the
pilot boat Valentina, inasmuch as, though the latter's
acquisition of the vessel at public auction, on January 23,
1915, was subsequent to its purchase by the defendant
Rivera, nevertheless said sale at public auction was
antecedently record in the office of the Collector of
Customs, on January 27, and entered in the commercial
registry. An unnecessary proceeding on March 4th; while
the private and voluntary purchase made by Rivera on a
prior date was not recorded in the office of the Collector of
Customs until many days afterwards, that is, not until
March 17, 1915.
The legal rule set down in the Mercantile Code subsists,
inasmuch as the amendment solely refers to the official
who shall make the entry; but, with respect to the rights of
the two purchases, whichever of them first registered his
acquisition of the vessel in the one entitled to enjoy the
protection of the law, which considers him the absolute
owner of the purchased boat, an this latter to be free of all
encumbrance and all claims by strangers for, pursuant to
article 582 of the said code, after the bill of the judicial sale
at auction has been executed and recorded in the
commercial registry, all the other liabilities of the vessel in
favor of the creditors shall be considered cancelled.
The purchaser at public auction, Fausto Rubiso, who was
careful to record his acquisition, opportunely and on prior
date, has, according to the law, a better right than the
defendant Rivera who subsequently recorded his purchase.
The latter is a third person, who was directly affected by
the registration which the plaintiff made of the acquisition.
A. REGISTER OF PHILIPPINE VESSELS
MARINA Memorandum Circular No. 90 governs the
registration and documentation of vessels to entitle it to the
protection of Philippine laws and the right to fly the
Philippine flag subject to the obligations and disabilities
under the laws of the Philippines.
B. REGISTRATION OF CHARTERED VESSELS
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TRANSPORTATION LAW Based on the Book of Aquino
MARINA Memorandum Circular No. 182 governs the
conditions for the registration of such ships.
Bareboat charter refers to a contract for the lease of a ship for
a stipulated period not less than one (1) year, by virtue of
which the lessee has complete possession and control of the
ship including the obligation to appoint the Master and the
other crew of the ship for the duration of the lease.

C. SHIP'S MANIFEST
A manifest is a declaration of the entire cargo. The object of a
manifest is to furnish customs officers with a list to check
against, to inform the revenue officers what goods are being
brought into a port of the country on a vessel. Hence, the
requirement that a vessel must carry a manifest is not
complied with even if a bill of lading can be presented.
A bill of lading is just a declaration of a specific cargo rather
than the entire cargo. It is issued as a matter of convenience
by virtue of a contract.
Section 906 of the Tariff and Customs Code. Manifests
shall be required for cargo and passengers transported
from one place or port in the Philippines to another only
when one or both of such places is a port of entry." This
requirement is likewise imposed on every vessel from a
foreign port under Section 1005 of the same Code.

D. LOGBOOK.
It is the official record of a ship's voyage which its captain is
obligated by law to keep wherein he records the decisions he
has adopted, a summary of the performance of the vessel, and
other daily events. A logbook is a respectable record that can
be relied upon when the entries therein are presented in
evidence.

Wallem Maritime Services, Inc. v. NLRC

The Court ruled that a copy of an official entry in the
logbook is legally binding and serves as an exception to the
hearsay rule. In the said case, however, there was no
controversy as to the genuineness of the said entry and the
authenticity of the copy presented in evidence.

SAFETY REGULATIONS
On February 23, 2000, the Maritime Industry Authority
directed all domestic shipowners and operators under
Memorandum Circular No. 154 to strictly comply with
existing Safety-Related Policies, Guidelines, Rules and
Regulations
Monitoring of compliances shall be undertaken by the
Authority and its Maritime Regional Offices, together with
the needed coordination with the Philippine Coast Guard.

The MARINA shall have the power to inspect vessels and all
equipment on board to ensure compliance with safety
standards

Unweend Notes By: Connie Angela Torregosa 23