LEGAL ASPECT

TRANSPORTATION
LAW

VIGILANCE
OVER GOODS
P R I N C E S S Y V O N N E M . Y A B U T
 LEGAL ASPECTS

Common carriers are obliged to observe

extraordinary diligence in the vigilance over the
goods transported by them. The general rule is,
the common carriers are presumed to have
been at fault or to have acted negligently if the
goods are lost, destroyed or deteriorated. That
is, unless they prove that they exercised
extraordinary diligence in transporting the
goods. In order to avoid responsibility for any
loss or damage, therefore, they have the burden
of proving that they observed such diligence.

The exception to the general rule is shown in

Art. 1734 of the Civil Code.
LEGAL ASPECTS

ARTICLE 1734
Common carriers are responsible for the loss,
destruction, or deterioration of the goods, unless
the same is due to any of the following causes
only:
(1) Flood, storm, earthquake, lightning, or other
natural disaster or calamity;
(2) Act of the public enemy in war, whether
international or civil;
(3) Act or omission of the shipper or owner of the
goods;
(4) The character of the goods or defects in the
packing or in the containers;
(5) Order or act of competent public authority.
 ARTICLE 1739
In order that the common carrier may be
exempted from responsibility, the natural disaster
must have been the proximate and only cause of
the loss. However, the common carrier must
exercise due diligence to prevent or minimize loss
before, during and after the occurrence of flood,
storm or other natural disaster in order that the
common carrier may be exempted from liability
for the loss, destruction, or deterioration of the
goods. The same duty is incumbent upon the
common carrier in case of an act of the public
enemy referred to in article 1734, No. 2.

ARTICLE 1742
Even if the loss, destruction, or deterioration of
The law must be enforced the goods should be caused by the character of
fairly and firmly. the goods, or the faulty nature of the packing or of
the containers, the common carrier must exercise
due diligence to forestall or lessen the loss.
 LEGAL ASPECTS

Now what if there was indeed a natural disaster which caused

the loss, deterioration, or destruction of the goods, but then
the common carrier negligently incurred delay before that?

ARTICLE 1740
If the common carrier negligently incurs in delay in
transporting the goods, a natural disaster shall not
free such carriers from responsibility.
LEGAL ASPECTS

What would happen if, although the proximate

cause of the loss, deterioration, or destruction was
the common carrier’s negligence, the shipper was
also negligent?

ARTICLE 1741
If the shipper or owner merely contributed to
the loss, destruction or deterioration of the
goods, the proximate cause thereof being the
negligence of the common carrier, the latter
shall be liable in damages, which however, The law must be
enforced fairly and
shall be equitably reduced.
firmly.
 LEGAL ASPECTS
So when does the common carrier’s responsibility
commence? In other words, when will be the time that
the common carrier exercises extraordinary diligence?
When will it end?
Thus, from the moment that the common carrier has
POSSESSION, no matter how long the transportation
may begin, it should already exercise extraordinary
diligence in handling the goods.
This extraordinary diligence should last until the goods
are delivered to the consignee or to any persons with
the right to receive them. What do we mean by
constructive delivery? It means that as long as the
consignee or any person the shipper assigned to get the
goods was informed by the common carrier and given a
reasonable opportunity to get such goods, thereafter,
the common carrier is free from the responsibility to
exercise extraordinary diligence.
The extraordinary responsibility of the common carrier lasts
from the time the goods are unconditionally placed in the
possession of, and received by the carrier for transportation
Art. until the same are delivered, actually or constructively, by
1735 the carrier to the consignee, or to the person who has a right
to receive them, without prejudice to the provisions of
article 1738.
The common carrier’s duty to observe extraordinary
diligence over the goods remains in full force and effect
Art. even when they are temporarily unloaded or stored in
1737 transit, unless the shipper or owner has made use of the
right of stoppage in transitu.
The extraordinary liability of the common carrier
continues to be operative even during the time the goods
are stored in a warehouse of the carrier at the place of
Art. destination, until the consignee has been advised of the
1738 arrival of the goods and has had reasonable opportunity
thereafter to remove them or otherwise dispose of them.
LEGAL ASPECTS

STIPULATIONS

Is a statement, condition, demand, or promise in an

agreement or contract that says exactly what
something must be or how something must be done.
LEGAL ASPECTS

Any of the following or similar stipulations shall be considered unreasonable,

ARTICLE 1745 unjust and contrary to public policy:

That the common carrier will not be liable

01
That the goods are transported at the 02 for any loss, destruction, or deterioration of
risk of the owner or shipper; the goods;

That the common carrier shall exercise a degree

That the common carrier need not of diligence less than that of a good father of a
03 observe any diligence in the custody of 04 family, or of a man of ordinary prudence in the
the goods; vigilance over the movables transported;

That the common carrier shall not be That the common carrier’s liability for acts
05 responsible for the acts or omission of
06
committed by thieves, or of robbers who do not
his or its employees; act with grave or irresistible threat, violence or
force, is dispensed with or diminished;

That the common carrier is not responsible for the loss,

destruction, or deterioration of goods on account of the
07 defective condition of the car, vehicle, ship, airplane or
other equipment used in the contract of carriage.
LEGAL ASPECT

ARTICLE 1744
A stipulation between the common carrier and the
shipper or owner limiting the liability of the former for
the loss, destruction, or deterioration of the goods to a
degree less than extraordinary diligence shall be valid,
provided it be:

(1) In writing, signed by the shipper or owner;

(2) Supported by a valuable consideration

other than the service rendered by the
common carrier; and

(3) Reasonable, just and not contrary to public

policy.
LEGAL ASPECTS

“SUPPORTED BY A
VALUABLE
CONSIDERATION”
is a DISCOUNT ON THE FEES. In
other words, the shippers pay less
than the usual fees, and in turn, the
common carrier will not exercise
extraordinary diligence anymore,
but rather only a lower amount of
diligence, but not lower than the
“diligence of a man of ordinary
prudence in the vigilance over the
movables transported” (this may be
referred to as merely “ordinary
diligence”).
LEGAL ASPECTS

Stipulations that reduces NOT THE DEGREE OF

DILIGENCE required but the AMOUNT OF
LIABILITY
LEGAL ASPECTS
ARTICLE 1749
A stipulation that the
common carrier’s liability is
limited to the value of the
goods appearing in the bill of
lading, unless the shipper or
owner declares a greater
value, is binding.
ARTICLE 1750
A contract fixing the sum that
may be recovered by the owner
or shipper for the loss,
destruction, or deterioration of
the goods is valid, if it is
reasonable and just under the
circumstances, and has been
fairly and freely agreed upon.
LEGAL ASPECTS

The liability of the common carrier

over the baggage of passengers.
 LEGAL ASPECTS

The provisions of articles 1733 to 1753 shall apply

to the passenger’s baggage which is not in his
personal custody or in that of his employee. As to
ARTICLE 1754 other baggage, the rules in articles 1998 and 2000
to 2003 concerning the responsibility of hotel-
keepers shall be applicable.
For “Checked-in” baggage: the
common carrier must exercise
extraordinary diligence

For “Carry-on” Baggage: the same

diligence as that of hotel keepers
LEGAL ASPECT

IT’S A LITTLE MORE

COMPLICATED FOR
CARRY-ON BAGGAGE.
THUS, THESE ARE THE
RULES AS PROVIDED BY
ARTICLES 1998, 2000-2003.
LEGAL ASPECTS

(1) The common carrier will be liable for the loss or damage to the baggage if:
a. caused by employees
b. caused by strangers
c. caused by a thief or a robber who did not use arms or irresistible
force
(2) The common carrier will NOT be liable if the loss or damage is caused by:
a. Force majeure
b. theft or robber WITH THE USE of arms or irresistible force
c. acts of the passenger, his family, his servants, his visitors
d. the character of the baggage

(3) The common carrier cannot free itself from responsibility by posting notices to the effect that it
is not liable for the articles brought by the passenger. It also cannot have a stipulation
diminishing or suppressing its responsibilities over the “carry-on” goods of the passenger.
LEGAL ASPECTS

HERE’S AN INTERESTING QUESTION,

Would a jeepney operator be liable if a

passenger was pickpocketed?
LEGAL ASPECTS

The provisions above may be applicable. In

applying this provision, the answer would likely be
that the jeepney will be liable. But doesn’t that
appear unfair? What should the jeepney driver do?
Look over the passengers and not at the road?

Thus, the following provision on the safety of

passengers is more fitting as Art. 1754
contemplates “baggage” and not the items in a
passenger’s pocket.
LEGAL ASPECTS

ARTICLE 1763
A common carrier is responsible for injuries suffered by a passenger on
account of the wilful acts or negligence of other passengers or of strangers, if
the common carrier’s employees through the exercise of the diligence of a
good father of a family could have prevented or stopped the act or omission.

Thus, in pickpocket situations, applying Art. 1763, the common carrier is only liable if the
driver COULD HAVE PREVENTED OR STOPPED the act or omission. In most instances,
there is no opportunity to prevent or stop the act or omission as it is done through stealth and the
driver has to pay attention to the road. However, it would be a different story if the driver is in
cahoots with the pickpocketer.
THANK YOU
P R I N C E S S Y V O N N E M . Y A B U T