BRIEF NOTES FOR LECTURE IN regularly supplying the public with some

TRANSPORTATION LAW: Atty. Minda Gapuz commodity- service of public conseq, such as
Transpo, electric, water. Telecommunication,
Background/ Intro: 1987 Constitution Articles 12, s. telegraph, railroad, airport, shipyard, ice plant,
11, 17, 18, 19 IT, warehouse.
Transportation- is the movement of goods or
ART. 11: No franchise for operation of public persons for one place to another by land, water or
utility be granted except to citizens, corporation/ air-railway.
partnership wherein capital of 60% were owned by Governing laws: NCC ART. 1732-1736; Code of
Filipinos-40% may be foreigners capital. Commerce; CGSA; Warsaw Convention treaty,
To operate requires franchise but not LTFRB, MARINA; Civil Aeronautics Board
ownership. (CAAB), etc.
ART. 1732-CC: A person, corporation, firm,
ART. 17: In national emergency wherein public association engaged in business of carrying
interest requires, State may, during emergency, passengers, goods or both by land, water or air for
temporarily takeover the operation of private compensation and offering services to the public.
owned public utility or business affected with It makes no distinction whether it is an
public interest. ancillary, regular or episodic, unscheduled
ART. 18: State may, in the interest of national activity or whether it offers its services to the
welfare or defense, operate-- establish vital public or a segment of community for
industries upon payment of just compensation, compensation.
transfer to public ownership, utilities be operated by
the government. CARRIAGE OF GOODS
Under police power of the state, it may regulate a
business affected wit public interest since the LIABILITY OF A COMMON CARRIER: starts
primary character of Public Utility is public service from the time the common carrier receives
or use- to protect public and promote safety, unconditionally the goods and ends until the goods
comfort, welfare of the people. = The State may are delivered to place of destination or actually/
take over the operation of public utility in case of constructively delivered to consignee/ agent/
declaration of national emergency by Congress. authorized person.
Public service does not mean whole public or mean DILIGENCE REQUIRED: exercise of
all the people in a certain area, or even a small EXTRAORDINARY DILIGENCE
segment of the community, maybe regular or Raises instantly the presumption of negligence-
episodic- for compensation. fault unless common carrier observed
Public Utility- is a business/ service engaged in Extraordinary Diligence or loss, destruction or

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 deterioration is caused by:
1. Flood, storm, earthquake, lightning,
Natural Disaster or calamity, perils of the
sea;
2. Act or omission of the shipper;
3. Character of goods or defect in the
packaging or latent defects not discoverable by
due diligence;
4. Act of public enemy in war;
5. Order or act of competent authority.
That the above exceptions is the only proximate
cause of the loss, destruction or deterioration. But
even with the presence of the above exceptions,
common carrier is obliged to exercise due diligence
to prevent/ minimize LLD before, during and after
the fortuitous event/ natural disaster.
Example: In case of flood/storm, common
carrier should minimize the damage before, during
and after by providing cover or transferring the
goods to a safer place.
Similarly, under the Carriage Of Goods by Sea
Act (COGSA) (International SEA transport of
goods contracts), the COGSA provides that neither
the common carrier nor the shipper is liable for
damage arising from unseaworthiness unless
caused by:
1. Want of due diligence/ lack
extraordinary diligence. To make the ship
seaworthy, and to make the ship properly
manned, equipped and supplied and make
the holds, refrigerating, and cooling
chambers fit and safe for preservation of
goods. That the common carrier shall not
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be liable for LD caused by;
i. Act neglect of master/ crew
ii. Fire, unless fault of the common
carrier
iii. Perils of the sea
iv. Act of God/ war/ public enemies
v. Act/ omission of shipper/agents
vi. Defect in packaging
vii. Latent defects not discovered by
due diligence.
HIJACKING or PIRACY is not considered as
Fortuitous Event/ Natural Disaster. As a general
rule: Does not exempt common carrier from
liability because it is not one of the enumerated
cause under the law. However, if the
hijacking/piracy is beyond control of the
common carrier because of grave and irresistible
force which cannot be foreseen or is inevitable,
hijacking/piracy is regarded as fortuitous event
because common carriers are not absolute
insurers against risk of travel. Here, common
carrier must prove that hijackers/pirates acted with
grave abuse and irresistible force, in order to be
exempt itself from liability. FIRE is not considered
as natural disaster or fortuitous event/calamity (SC
decision).
LIMITED LIABILITY RULES- valid- pursuant
to Warsaw convention treaty (on International
of Carriage of Goods by AIR- check-in baggage-
$20/k or hand carry $400/passenger) provided the
limited liability is expressed or written in the Bill
of Lading-ticket-contract and not against public
policy.
EXCEPTIONS TO THE LIMITED LIABILITY
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 RULE:
1.Unreasonable delay in delivery without
just cause- unprofessional conduct;
2.Higher value declared;
3.Charter party
4.Limited liability rule is not expressed
nor written in the ticket/bill of
lading/contract. (best evidence- bill of
lading/ticket/contract...refer also to the
rules in COGSA above)
However, in case of PRIVATE CARRIERS (as in
simple Affreightment, Voyage or Time Charter)
the exercise of ordinary diligence, the vigilance of
goods will suffice. But in case of BAREBOAT OR
DEMISE CHARTER the common carrier owner
relinquishes its possession, control and command of
its vessel/facility to the DEMISE/BAREBOAT
CHARTERE who acquires full control, command
and navigation of the vessel/transportation,
crew/compliment, is required under the law to
exercise extraordinary diligent and therefor
SPECIAL VOYAGE- TIME OR VOYAGE
CHARTER PARTY: extraordinary diligence is
required of the common carrier, even if there is only
one shipper, like SMC, whether the common carrier
owner is not converted to a private carrier because
of the common acarrier did not relinquish its control
and command of the vessel/transportation.
GENERAL RULE: in case of
LEASE/CHARTER= extraordinary
diligence required from the party who has
control-possession-command of the
vessel, as in DEMISE OR BAREBOAT
but not in case of AFREIGHTMENT or
simple time/voyage charter, UNLESS
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LIMITED LIABILITY is expressed.
LIMITED LIABILITY RULE:
CONTAINERIZATION SYSTEM- of loading is
designed to facilitate expeditious-economical
loading of cargoes where common carrier does not
participate in counting of goods for loading and
common carrier issues a bill of lading based on
declaration of shipper, EXCEPT if containerized
cargo is issued a SAID TO CONTAIN BILL OF
LADING where common carrier is liable for
shortages- US Lines v. Commission of Customs
LIMITED LIABILITY RULE: UNDER THE
CODE OF COMMERCE- maritime transactions
are REAL/HYPOTHECARY in nature that the
liability of vessel owner is limited only to the value
of the vessel. So that if the vessel SINKS, the owner
may exercise RIGHT OF ABANDONMENT due to
damage of more than 3/4. Also, the fact of damage
must appear in the bill of lading, but if damage can
be determined only upon opening of packages
claim for damages be filed within 24 hours from
receipt. For MISDELIVERY OR CONVERSION
of cargo, prescription is 10 years, but under
Carriage of Goods by Sea Act (COGSA) in case of
loss/damage prescriptive period is 1 year. From
arrastre services- be file within 2 years from the
date of this charge from common carrier.
GENERAL AVERAGE LOSS- THE DAMAGE
OR EXPENSE (Jettison, arrival under stress;
proper deviation) incurred due to marine peril and
which resulted in saving the vessel/cargo, inures to
the benefit of those saved, those saved like vessel or
cargo saved, shall proportionately share the
expense/loss. If insured, the insurer shall reimburse
those who paid.
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 IN PARTICULAR AVERAGE only a particular
cargo or vessel is saved, so others do not contribute
because it did not inure to the benefit of all those
saved.
LIMITED LIABILITY RULE- in case successive
carriers (Samar mining v. Nordeutcher, where
common carrier accepted transport of goods from
Germany to Manila, although goods were
transported to Davao, common carrier merely
acted as agent of the shipper in transporting the
same to Davao. In case of LDL, common carrier
is not liable.
LIMITED LIABILITY RULE: in case of
COLLISION- where both vessels are moving, the
guilty vessel pays the damage/loss, except when the
GULTY SINKS because of the HYPOTHECARY
NATURE in marine transactions. In case of
ALLISION, one of the vessel is stationary or not
moving, the moving vessel is liable for the
loss/damage in case of natural disaster/fortuitous
event.
LIMITED LIABILITY RULE: DOCTRINE OF
LAST CLEAR CHANCE- is sometimes referred
to as SUPERVENING NEGLIGENCE is to the
effect that where both parties are negligent or is
impossible to determine whose fault, the one who
had the last clear chance or opportunity to avoid the
impeding harm and failed to do so, is chargeable
with the consequence (SC in LBC v. CA).
LIMITED LIABILITY RULE: findings of the
Board Marine Inquiry (BMI)- are not always
binding on the courts- that in case of the UNSEA
WORTHINESS of vessel, said vessel shall be liable
for the loss/damage because of the warranty or
presumption of sea worthiness of vessels, which is a
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PERIL OF THE SHIP and not a peril of the sea.
Discuss- apply this rule also on implied warranty of
road worthiness air worthiness in land
transportation and air transportation.
Discuss/ relate Liabilities in case sale prices of
goods transported is FOB, Manila? CIF; FAS
Free on Board (FOB)- the Seller
undertakes to deliver goods up to the vessel, the Buyer
shall assume freight.
Free Alongside (FAS)-similar with FOB,
Seller undertakes to deliver alongside the vessel and the
Buyer assumes freight.
Cost Insurance Freight (CIF)- Seller
assumes cost insurance freight-that goods are delivered
up to the point of destination. Assumption
of liability either by Buyer/ Seller therefore depends
upon the price classification of the goods.
CARRIAGE OF PASSENGERS
General Rule: Certificate of Public Convenience
(CPC) is required so that the registered owner is
liable for LDL. However, SC said that CPC is not a
requisite for incurring liability under the New Civil
Code governing common carriers which liability
arises from the moment a person/firm act as a
common carrier whether common carrier complied
with requirements for registration with the LTFRB,
CAAB, MARINA.
ARTICLE 1755: Common carrier is bound to carry
passengers safely as far as human care and foresight
can provide using utmost diligence, with due
regard for all circumstances.
Common carriers is vested with public interest and
therefore exhorted to carry passengers using utmost
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 diligence. So, in case a passenger is injured or does
not reached his destination safely, common carrier
is presumed at fault except in case of fortuitous
event/ natural disaster, as in acts of God, and also
acts of man (Piracy, Hijacking, if proven to be done
with grave and irresistible force. But fortuitous
event mus not concur with negligence, otherwise it
will not exempt the common carrier from liability.
SC ruled that a registered owner of a vehicle is
liable for deaths, injuries, regardless of sale/transfer,
because the registered owner id the registered
lawful owner as to the public and third person.
Therefore, the registered owner of record is the
employer of the driver, the actual buyer/ operator
(who are not the registered owner in record) is
considered as an agent of the registered owner.
When does carriage of passenger begins and
ends?
From the time the passenger boards and
alights/ arrives at the port of destination/
until he leaves the premises with his
baggage/children or even when he leaves the
premises but returns within a reasonable time
to retrieve his missing baggage (SC decision).
Liability of common carrier?
Negligence is presumed/ disputable
presumption and the exercise of utmost
diligence be proven by common carrier to
exempt itself from liability, such as natural
disaster, fortuitous event/piracy/ hijacking, if
unforeseen/ inevitable. To rule otherwise would
make common carriers insurer of absolute
safety of the passengers (SC decision).
Common carriers cause of action:
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1. Culpa contractual (Passenger vs. Common
Carrier): Breach of contract, the negligence is
based on contract like ticket, could also be
oral, or even if standing on the platform of the
bus. The injured party needs only to prove
that the carrier failed to carry its passenger
safely to his destination, as far as the human
care and foresight can provide using utmost
diligence. The injured party does not have to
prove that the common carrier was negligent/
at fault but merely provide the existence of
contract to carry and common carriers non-
performance.
2. Culpa criminal (Passenger vs. Driver):
Common carrier is presumed to be at fault/
negligent when a passenger died or was
injured, unless the presumption is rebutted by
proof the existence of a fortuitous event
(flood, storm, earthquake, natural disaster)
force majeure. If the drivers act amounted
to reckless imprudence resulting to physical
injuries (PP v. Driver) and if the driver is
insolvent, an action may be pursued by the
injured passenger against the registered
owner, to enforce the owners subsidiary
liability.
3. Culpa Aquilana/negligence (Passenger vs.
Common Carrier + Driver): weakest cause of
action, because the employer may raise the
defence of due diligence in the selection and
supervisionof employee/ driver.
In case of death/ injury of passenger due to
negligence of both drivers (reckless driver,
violating traffic rules, alcohol/drugs), both drivers
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 and the owners of the common carriers are
solidarily liable.
General rule: Common carrier is not liable to a
non-paying passenger.
Exception: Those allowed under the law or
when allowed by the owner/common carrier,
except when common carrier is grossly
negligent/ violating traffic laws.
Doctrine of last clear chance/ supervening
negligence: is also applicable in the transport of
passengers in case of collision where both common
carriers are negligent. To the effect that where both
parties are negligent or is impossible to determine
whose fault, the one who had the last clear chance
or opportunity to avoid the impeding harm and
failed to do so, is chargeable with the consequence
(SC in LBC v. CA).
SOME SUPREME COURT RULINGS IN
TRANSPO:
1. General Rule: Common carriers are liable for LDL
even if received by the arrastre or Customs broker, being
an integral part of transportation business.
Exception: Unless:
A. Bill of Lading is signed as delivered or
Received by the Consignee ; or
B. If the common carrier clearly specified that
delivery is up to a certain designation; or
C. If goods are turned over to the authorized agent
of consignee like the customs broker/ arrastre operator,
if destination is a fixed place, not the Consignee
address.
2. The Carriage of Goods by Sea Act (COGSA) is
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applicable to all contracts of carriage of goods by sea to
and from the Philippines ports in foreign trade under the
Public Act 521, Commonwealth Act 65- we cover the
period from the time the goods are loaded until delivered
to the consignee. -- Common Carrier is discharged
unless the suit is brought within 1 year from the delivery
or should have been delivered.
3. The Limited Liability Rule under the Warsaw
Convention Treaty does not operate as an absolute limit
of liability and should not preclude the operation of the
NCC unless there was a willful misconduct/ gross
negligence or common carriers employees willfully
acted outside the scope of their authority. However,...
Next
a) However, if the cause of action filed by
Consignee against the common carrier is Culpa
Aquilana, common carrier is liable for
negligence of its employees even if they acted
beyond the scope of authority because liability
of common carriers does not cease upon prof
of exercise of due diligence in
selection/supervision of its employees.
4. In case of round trip plane ticket which is a
complete written contract consisting of 6 flight coupons,
open dated, and loss of 1 coupon does not exempt
common carrier from moral and exemplary damages.
5. If passengers were stranded due to fortuitous event
and treated with apparent apathy/ discrimination,
common carrier is liable.
6. Where Hijacking/ Air Piracy is a fortuitous event or
force majeure to exempt common carrier, it must be
proven that common carrier exercised extraordinary
diligence/utmost diligence or there is impossibility or it
cant be avoided to fulfill their obligation.
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7. Liability of common carrier cannot be lessened/
dispensed with stipulation/ statements in tickets or by
posting notices.
8. Even when passenger is carried gratuitously, a
stipulation limiting liability for negligence is valid but
not for willful acts/ gross negligence. Reduction of fare
does not justify limitation of common carriers liability.
9. Where non-paying passenger was injured, due to
common carriers negligence, common carrier is liable.
10. Tort committed by strangers which caused injury to
the passengers does not accord the passenger a cause
of action against the common carrier. In case of Tort,
only due diligence is required. Common carriers must
prevent the attack of hijackers, otherwise common
carrier is liable.
11. Common carriers must stop within a reasonable time
to afford the passengers opportunity to board/ disembark
(can be held liable for sudden starting-jerking, stopping.)
12. Victim standing/ stepping on the platform s already
considered as a passenger. A passenger does not cease to
be a passenger until he is landed at the port of
destination and left the premises but includes reasonable
time to look after/ claim his baggage and prepare for
departure.
13. Common carrier is not exempted from liability even
if steering knucle or explosion of old/brand new tires
have factory defect or faulty speedometer, common
carrier improperly parked, overtaking, hold-up by driver,
acting beyond scope of authority (refer to NCC Art.
1759) because passengers have no control or choice in
the selection of common carriers equipment.
14. In case of stabbing incident causing commotion and
panic among passengers, there was force majeure, but
common carrier must prove that it was not negligent is
causing loss, destruction, death.
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15. Vessel/ common carrier has implied warranty of
seaworthiness, so when it navigated with only 1 engine
functioning and remained adrift and passengers brought
to Cebu, causing delay/ damages...? Lol
16. Doctrine of Last Clear Chance/ supervening
negligence is not applicable when the passenger demand
responsibility of common carrier to enforce Culpa
Contractual.
17. Even without license, franchise, kabit system,
colorum, sale, transfer, lease=Common carrier is liable
except natural disaster/ fortuitous event.
18. Successive Carriers Rule: ticket issuing common
carrier assumes full responsibility for the entire trip.
19. In case a passenger dies/ injured, common carrier is
presumed to be negligent/ at fault.
20. A common carrier becomes a private carrier when it
undertakes to carry a special cargo or chartered to a
specified person only- also refer to bareboat/ demise
charter vs, Affreightment, Time or Voyage Charter.
21. Despite catering to a limited clientele, like
transport of students only, common carrier is liable for
moral/exemplary damages because of deep mental
anguish over the unexpected violent death/ accident of a
son/ passenger.
22. General Rule: Common carrier is presumed
negligent/liable, unless it proves that it exercised
extraordinary diligence. Exception: However, in case of
natural disaster (typhoon) common carrier is not
automatically relieved from liability, unless it exercised
due diligence to prevent/minimize the loss, destruction,
damage, before, during and after the natural disaster.
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