H1 Atty. Vivencio F.

Abaño -1-
CODE OF COMMERCE: TRANSPORTATION OVER LAND

(ARTS. 358, 370-71) (ART. 359, (ARTS. 363-365) (ART. 366, (ARTS. 368, 369) (ART. 373)
JURISPRUDENCE) JURISPRUDENCE)
TIME TO DELIVER ROUTE DELIVERY CLAIM/SUIT MISDELIVERY/NON- MULTI-CARRIERS
PARTIAL DEFECTIVE DELIVERY
1. when no period fixed: 1. if route agreed upon, purpose of following This refers to an
carrier must forward carrier may not change it the carrier must deliver requirements: so carrier can the carrier must deliver the arrangement where several
goods in the first unless by reason of force the goods in the same check validity of claims goods to the consignee or carriers successively
shipment of same or majeure; otherwise, carrier condition and quantity in while facts are still fresh legitimate holder of the bill transport the goods, or by
similar goods. is liable for losses suffered which they were and documents still of lading. a single through bill of
by goods, and for indemnity received, according to available. lading issued by a carrier
2. when period fixed: stipulated. the bill of lading. 1. the shipper may order and honored by the other
carrier must deliver 1. when the damage is the return or retention of carriers.
goods within time fixed. 2. if no agreed route, carrier 1. in case of partial ascertainable from the the goods by carrier, prior
must select shortest, least delivery, consignee may outside part of the package, to appearance of consignee 1. in transportation of
DELAY IN DELIVERY expensive and practically refuse to receive those the claim must be made at or legitimate holder of ill of goods by successive
passable route (Art. 1747). delivered if they cannot the time of receipt. lading. carriers, the last carrier
in case of delay, the be used independently of assumes the obligation of
carrier is liable for: those not delivered. 2. when the damage is 2. the carrier is liable for the previous carriers.
ascertainable only by the damages if it delivers to the
1. indemnity stipulated in 2. if the goods delivered opening of the package, the wrong person (misdelivery). 2. but the last carrier, if
the bill of lading. were rendered useless claim against carrier must not directly responsible for
for sale or consumption, be made within 24 hours 3. if the carrier makes no the loss or damage, may
2. if no stipulation, consignee may refuse to following receipt (longer delivery or refuses to deliver proceed against the
damages due to delay receive. period may be stipulated). (non-delivery), the previous carriers.
which may not exceed consignee may sue for
the current price of the 3. if the goods delivered 3. in both cases, the claim conversion and damages. 3. shipper/consignee have
goods on the day and are damaged to such an must be made before right of action against
place of destination. extent that their value is payment of transportation 4. if consignee cannot be carrier who executed
diminished, carrier must charge. found in the place indicated transportation contract, or
3. special damages, like pay the difference in in bill of lading, or refuses the other carriers who
unrealized profit, if value as judged by 4. a provisional claim need to pay transportation charge received goods without
carrier foresaw or had experts. not state in detail list of or to receive goods, the reservation.
notice of circumstances goods lost or damaged, so carrier may deposit goods in
leading to the probable in the first 2 cases, long as carrier can make its warehouse or the court; 4. carriers with reservation
occurrence of such consignee may exercise reasonable verification. such deposit has the legal are not relieved of
damage. abandonment and be effect of delivery. responsibilities for their
entitled to full value of 5. claim is condition own acts.
4. full value of goods, if goods. precedent to right of action, claim not a condition
consignee should which must be filed within 2 precedent to action, which
exercise abandonment of year from delivery of goods must be filed within 4 years
the goods by advising or denial of claim. if no written contract or 10
carrier accordingly prior years if written contract.
to arrival at destination. 6. sufficient and reasonable
shorter period may be
stipulated in the bill of
lading.
 Atty. Vivencio F. Abaño -2-
VESSELS/PERSONS IN MARITIME COMMERCE

VESSELS SHIPOWNERS/AGENTS CAPTAIN/MASTER OFFICERS PASSENGERS

A. Definition: A. Ship agent (may be shipowner; not a civil agent): A. Captain of big vessels for A. Officers must be duly A. Refund due to voyage
high sea or coastwide trade; licensed (PRC and MARINA). suspension or
1. those with motive 1. entrusted with provisioning vessel. master for smaller vessels for interruption:
power. 2. represents vessel in port where she is (Art. 586). coastwide trade. B. Officers include the
2. means of water 3. represents shipowner in judicial/extrajudicial acts following: 1. if due to fault of
transportation (P.D. 474) (Art. 595) B. Qualifications: captain or ship agent,
1. sailing mate passenger has right to
B. Excluded: B. Civilly liable for: 1. Filipino citizen. 2. second mate refund of fare and to
1. local and foreign military 2. with skill and 3. third mate damages.
vessels 1. acts and obligations of captain contracted to capacity to command 4. marine engineer
2. bancas and other repair, equip, and provision vessels (Art. and direct vessel. (Arts. 627-633) 2. if due to force majeure
watercrafts of less than 3 586). 3. duly licensed by or fortuitous event, only
tons gross capacity (P.D. 2. indemnities arising from conduct of captain MARINA (Arts. 609, return of fare or part
474) in the care of goods and passengers carried 882) thereof in proportion to
3. small watercrafts by vessel (Art. 587). distance traveled before
engaged in river and bay 3. obligation contracted by captain even C. Civilly liable for: interruption (Art. 697).
traffic (Art. 835) exceeding his powers and privileges, SUPERCARGOES
provided made for the benefit of vessel (Art. 1. damage to vessel B. Baggage:
C. Classified as personal 588). due to lack of in maritime law, a person
property, ownership of 4. damages in case of collision by reason of the skill/negligence. specially employed by the 1. passenger is
which to be recorded in fault, negligence, or lack of skill of captain or 2. theft, robberies, owner of cargo to take considered a shipper
registry of vessels. any member of the complement. mutiny by crew. charge of and sell insofar as the goods he
3. abuse of power. merchandise which have carries on board.
D. Warranty of C. Doctrine of limited liability and right of 4. unjustified deviation. been shipped, to purchase
seaworthiness: abandonment (Arts. 587, 590, and 837): 5. losses, fines and returning cargoes, and to 2. insofar as the goods in
confiscation imposed receive freight, as he may the immediate custody of
1. equipped for the voyage 1. because of real and hypothecary nature of due to violation of be authorized (Arts. 649- the passenger, the
and manned with sufficient maritime law, liability of shipowner/agent is laws and regulations 651). captain is not responsible,
number of competent limited o value of vessel, equipment and (Arts. 618-620). unless the damage arises
officers and crew. freight during the voyage. from his act or the crew’s
2. shipowner/agent may exempt themselves D. Defense of force majeure: (Art. 703).
2. shipper/passenger not from liability by abandoning vessel,
required to inquire into equipment or freight. 1. proximate and only
vessel’s seaworthiness, 3. Creditor cannot refuse offer of cause.
genuineness of its licenses, abandonment. 2. due diligence to
and compliance with prevent or minimize
maritime laws. D. Doctrine not applicable: loss.
3. no delay.
3. vessel must be 1. where shipowner/agent is at fault or 4. protest without 24
seaworthy at the star of concurrently negligent with captain. hours.
voyage; carrier not liable if 2. where shipowner/agent allows his vessel to
seaworthiness occurs later embark in an unseaworthy condition.
due to fault of shipper or 3. where vessel in insured.
passenger. 4. in Workmen’s Compensation Act.
 Atty. Vivencio F. Abaño -3-
DAMAGES AND ACCIDENTS IN MARITIME COMMERCE

AVERAGES ARRIVAL UNDER COLLISION/ALLISION SHIPWRECKS

STRESS
Averages are: 3. peril imminent and E. Proper legal step and A. Meaning: A. Definition: A. Meaning:
ascertained. authority:
1. all extraordinary or 4. part of vessel or cargos arrival of the vessel at collision is the impact of two when a vessel is
accidental expenses deliberately sacrificed. to incur expenses and the nearest and most moving vessels; allision is the damaged rendering her
incurred during the voyage 5. successful saving of vessel or cause damage of convenient port, when striking of a moving vessel a unable to navigate, or
for preservation of the cargo. general average, there the captain believes stationary one. when the vessel is lost at
vessel and/or cargo. 6. proper legal steps and must be resolution of the vessel cannot sea.
2. all damages and authority taken. the captain after continue the voyage to in case of risk of collision,
deterioration suffered by deliberation with other the port of destination each vessel must alter course B. Liability
vessel from departure to D. Effect: all person with interest officers and after (Art. 819). to starboard (right) so as to
arrival, and by goods from in the vessel and cargo saved hearing of person pass on the portside (left) of 1. generally, each owner,
loading to unloading (Art. shall contribute (Art. 812). present interested in once cause of arrival the other vessel (Rule 18, whether of the vessel or
806). Example: total value of vessel cargo (Art. 813). under stress ceases, International Rules of the cargo shall bear his own
and cargos is P10 million broken captain must continue Road). loss.
2 Kinds: down as follows: F. Entitlement: voyage, otherwise, he
is liable for damage B. Liability: 2. if shipwreck or
1. simple or particular – all Vessel = P5,000,000.00 1. to be entitled to caused by delay (Art. stranding caused by
expenses and damages Cargo = P2,000,000.00 indemnity of gross 825). 1. if collision due to force malice, negligence or
caused to vessel or cargo 1 average, owner of majeure or fortuitous event, lack of skill of captain, or
which have not incurred to Cargo = P2,000,000.00 cargo must prove its B. Justifications: each vessel and its cargo vessel was insufficiently
the benefit and common 2 existence by means of a liable for its own damage repaired and equipped,
profit of all persons Cargo = P1,000,000.00 bill of lading, shipowner 1. lack of provisions (Art. 830). ship’s agent and/or
interested in the vessel or 3 must prove by means (not due to negligence shipper may demand
cargo (Art. 809). Liable: of inventory. or failure to take 2. if collision due to fault, indemnity from the
owner of the goods which Cargo 3 is jettisoned to lighten necessary provision). negligence, or lack of skill of captain.
gave rise to the expense of vessel during storm. Vessel and 2. claims for averages captain or any member of the
suffered the damage (Art. Cargos 1 and 2 saved thereby. must exceed 5% of the 2. well-founded fear of vessel’s complement, owner
810). They must contribute to owner interest in the cargo or seizure by pirates of vessel at fault should
of Cargo 3 as follows: in the vessel. In the (manifest and based on indemnify.
2. general or gross – all the foregoing example, only positive and justifiable
damages and expenses Vessel = P500,000.00 a portion of Cargo 3 facts). 3. if both vessels at fault,
which are deliberately (50%) worth P10,000.00 is each shall suffer its own
caused in order to save the Cargo 1 = P200,000.00 jettisoned. This is only 3. accident disabling damage, and be solidarily C. Condition precedent
vessel and/or cargo from a (20%) 1% of the total value of vessel to navigate. liable for losses and damage for recovery of
real and known risk (Art. Cargo 2 = P200,000.00 P1,000,000.00 of Cargo suffered by their cargos. damages/losses:
811). (20%) 3, and hence, its owner 4.damage to vessel maritime protest under
is not entitled to caused by malice, 4. owner of a vessel is liable oath by the captain
C. Elements of gross the balance of P100,000.00 is indemnity. negligence, want of if it caused another vessel to within 24 hours, before
average: Cargo 3’s own contribution. foresight, or lack of collide with a third vessel. competent authority
skill of captain (Art. where collision took
1. common danger. 820). 5. doubtful collision, same as place at first port of
2. arising from #1 (above). arrival (Art. 835).
accidents of
sea/disposition of
authority.
 Atty. Vivencio F. Abaño -4-
H2
COMMON CARRIER: TRANSPORTATION OF GOODS

(ART. 1766) (ART. 1733) (ART. 1735) (ART. 1734) (ARTS. 1739-1743) (ARTS. 1744-1752)
GOVERNING LAWS EXTRAORDINARY LOSS, DETERIORATION DEFENSES CONDITIONS TO AVAIL OF STIPULATION LIMITING
DILIGENCE/RESPONSIBILITY OR DESTRUCTION EXEMPTING OR DEFENSES LIABILITY
1. New Civil Code MITIGATING
2. Code of Commerce 1. to transport with greatest LIABILITY 1. Requisites:
3. Special Laws skill and utmost foresight a. in writing
b. with valuable
2. utmost vigilance of very PRESUMPTION OF 1. natural disaster  1. consideration other
(ART. 1732) cautious person, according to NEGLIGENCE like flood, storm, a. proximate and only than the services of
COMMON CARRIER all circumstances earthquake, cause. the common carrier
1. not conclusive but lightning. b. exercise of c. reasonable, just and
1. engaged in the business of disputable presumption diligence to not contrary to
carrying or transporting goods (ARTS. 1736-1738) prevent or public policy
or passengers DURATION OF 2. may be overcome by minimize loss.
a. whether as principal EXTRAORDINARY contrary evidence of 2. Void Stipulation:
or ancillary business RESPONSIBILITY defenses. a. unreasonable
b. whether on regular/ 2. act of public  2. same as in #1 b. unjust
scheduled basis or 1. from time goods are enemy in war, (above). c. contrary to public
occasional/unschedul unconditionally placed in (ART.1753) whether international policy
ed basis possession of and received by or civil.
common carrier for transport law of the country of 3. Valid Stipulation:
2. offers its service to the until actual or constructive destination shall govern a. limited to value of
public delivery to consignee or person liability of common 3. act or omission of  3. goods appearing in
a. whether to the with right to receive. carrier for loss, owner or shipper of a. if proximate cause, bill of lading
general population destruction or goods. exempting. b. fixed sum that is
b. or narrow segment of 2. even when goods are deterioration of goods. b. if contributory reasonable and just
general population temporarily unloaded or stored negligence, and agreed upon
in transit, unless shipper used mitigating. c. delay due to strike
3. for compensation or fixed right of stoppage in transitu. or riot
price or rate
3.even during time of storage 4. character of goods  4. exercise of due 4. Factors to be
4. control of operation/cargo at warehouse of common or defect in the diligence to forestall or considered:
carrier at place of destination, packing or container. prevent losses. a. refusal to carry
until consignee is advised of goods unless
goods’ arrival and has had stipulation limiting
opportunity to remove or liability is signed by
dispose of them. 5. order or act of  5. with power to issue shipper
competent public the order. b. delay or deviation
authority. c. lack of presence of
competition

(ARTS. 1733, 1755)
EXTRAORDINARY
DILIGENCE
1. to carry passengers
safely as far as human care
and foresight can provide.
2. using utmost diligence of
a very cautious person.
3. with due regard for all
the circumstances.
NO INSURER OR ABSOLUTE
SAFETY
the common carrier is not
required to exercise all the
care, skill or diligence the
human mind can conceive,
nor free the passenger from
all possible risks.
PASSENGER
one who travels in a public
conveyance by virtue of an
express of implied contract
with the common carrier,
paying fare or what is the
equivalent thereof.
Atty. Vivencio F. Abaño -5-
TRANSPORTATION OF PASSENGERS
(JURISPRUDENCE) (ART. 1756) (ARTS. 1757, 1758) (ARTS. 1761, 1762) (DEFENSES)
CONTRACT OF CARRIAGE DEATH OR INJURY TO LIMITATION OF LIABILITY DUTY OF PASSENGERS 1. exercise of
PASSENGER extraordinary diligence by
A. Commencement: 1. liability cannot be 1. to observe ordinary common carrier.
dispensed or lessened by diligence to avoid injury to
1. (liberal view) when a posting of notices, himself. 2. negligent act of the
person offers to be statements on tickets or passenger is proximate
transported, placing himself PRESUMPTION OF otherwise. 2. contributory negligence cause of death or injury.
in the care and control of the NEGLIGENCE of passenger does not bar
common carrier who accepts 2. in gratuitous carriage recovery of damages but 3. employees could not
him as such passenger. disputable and may be stipulation to limit liability reduces amount thereof. have prevented by
overcome by proof of may be valid, but not for ordinary diligence the
2. (strict view) there is actual exercise of extraordinary willful act or gross willful act or negligence of
boarding or placing of a part diligence. negligence. (ART. 1763) other passengers or
of the passenger’s body in strangers which caused
the vehicle. 3. reduced far does not ACTS OF CO- injury or death.
(ARTS. 1759, 1760) justify limiting liability. PASSENGERS OR
B. Termination: STRANGERS 4. liability is mitigated by
NON-EXEMPTING OR NON- the contributory
When the passenger alights LIMITING 1. common carrier is negligence of passenger
from the vehicle at the place responsible in case of or his failure to observe
of destination and has 1. common carrier is liable death or injury on account ordinary diligence to avoid
reasonably opportunity to due to negligence or willful of willful act or negligence injury.
leave the common carrier’s act of employee, even if of other passengers or
premises. done beyond scope of strangers -- 5. stipulation to limit
authority or in violation of liability is valid in
orders. 2. if employees could gratuitous carriage, if no
have stopped or willful act or gross
2. liability does not cease prevented the act or negligence by common
with exercise of ordinary omission by exercise of carrier.
diligence by common ordinary diligence.
carrier.
3. liability is not eliminated
or limited by stipulation
posting of notices,
statements on the tickets.
 Atty. Vivencio F. Abaño -6-
RECOVERABLE DAMAGES

ACTUAL MORAL NOMINAL TEMPERATE LIQUIDATED EXEMPLARY

compensation for pecuniary compensation for physical awarded for award is more than damages agreed upon in a imposed by way of
loss suffered (Art. 2219). suffering, mental anguish, vindication or nominal but less than contract in case of breach example or correction for
fright, serious anxiety, etc., recognition of a right actual damages (Art. thereof (Art. 2226). the common good (Art.
Kinds: which are the proximate which has been 2224). 2229).
result of the wrongful act or invaded or violated amount stipulated shall be
1. Art. 2200 omission (Arts. 2217, 2219). (Art. 2221). When recoverable: equitably reduced if When recoverable:
a. actual loss iniquitous/unconscionable
b. unrealized profit Grounds for award: Grounds for 1. when pecuniary loss (Art. 2227). 1. there must be an
recovery: was suffered but the award of actual, moral,
2. Art. 2205 1. in breach of contract of amount thereof cannot Example: temperate or liquidated
a. impairment of carriage, there must be fraud, 1. breach of legal duty from the very nature damages.
earning capacity bad faith, or death (Art. or invasion of legal thereof be proved with 1. valid stipulation on
b. injury to business 2220, Jurisprudence). right even if no actual certainty. limited amount of liability. 2. crime is attended by
standing or damage resulted or aggravating
commercial credit 2. in case of death, heirs none is shown. 2. when the amount can 2. stipulated indemnity in circumstance.
entitled to moral damages. be proved but the plaintiff case of delay.
3. Art. 2206 2. no actual, moral, or failed to present evidence 3. gross negligence in
a. fixed indemnity 3. only injured passengers temperate damages therefore or submitted the When recoverable: commission of quasi-
b. loss of earning entitled to moral damages awarded. wrong evidence, nominal delict.
capacity formula: due to his injury damages is awarded 1. proof of existence of
[2/3 (80-age of (Jurisprudence). (Jurisprudence). contract. 4. contract (of carriage)
death) x gross is violated in wanton,
income] ÷ 2 Factors to determine: 2. proof of breach of fraudulent, reckless,
contract, or of delay in aggressive or malevolent
4. Arts. 2208-2213 1. social, political, official and compliance or fulfillment. manner.
a. attorney’s fee financial standing of
b. interest passenger (Jurisprudence). When not recoverable:

When recoverable: 2. degree/extent of mental 1. there was good faith.

1. proof of loss, injury or anguish (Jurisprudence).
impairment. 2. employer is not
2. proof of actual amount 3. Sentimental value of subsidiarily liable unless
thereof with reasonable degree property (Art. 2218). he participated in or
of certainty premised upon abetted the crime.
competent proof.

CARRIAGE OF GOODS BY SEA ACT
A. Origin/Purpose
COGSA is a US law which was adopted by consignee, or insurer. The prescriptive
the RP as C.A. No. 65 in 1936, to govern period does not apply to suits filed by
contracts for the carriage of goods by sea insured against insurer.
to and land from the RP in foreign trade.
B. Primary Law
COGSA is governing law, if stated in bill of
lading or similar document that contract
of carriage is subject to its provisions
(Sec. 13). Note effect on Art. 1753 of
NCC.
C. Bill of Lading
Prima facie evidence of the receipt by the
carrier of the goods as described therein.
(Sec. 3[4]). Contrary evidence may be
presented.
D. Prescriptive Period (Sec. 3[6]).
1. If loss or damage is apparent or
external, notice in writing must be
given to carrier or agent at time of
removal of goods by person entitled
to delivery.
2. If loss or damage is not apparent,
within 3 days of delivery.
3. If no notice is given, there is prima
facie evidence of delivery of goods as
described in bill of lading.
4. Notice is not needed if goods jointly
surveyed or inspected at time of their
receipt
5. Whether notice of loss/damage is
given or not, suit must be filed within
1 year after delivery of when goods
should have been delivered,
otherwise, prescribed.
6. If misdelivery, prescriptive period for
suit is 10 years for breach of written
contract or 4 years for quasi-delict.
SPECIAL LAWS IN TRANSPORTATION (A)
Only the carrier’s liability is extinguished if
no suit is filed within 1 year by shipper,
E. Liability (Sec. 4[5]):
1. Maximum of $500 per package or, if
not shipped in packages, per
customary freight unit (e.g. metric
ton of bulk shipment).
2. Nature and value of goods may be
declared by shipper and inserted in
bill of lading; declaration is prima
facie evidence and not conclusive on
carrier.
3. Shipper and carrier may agree on
another maximum amount, but not
more than amount of damage
actually sustained.
When the packages are shipped in a
container supplied by carrier and the
number of such units is stated in the bill
of lading, each unit and not the container
constitute the “package.”
F. No liability (Sec. 4[6]):
1. If nature or value of goods knowingly
and fraudulently misstated by
shipper.
2. If damage resulted from dangerous
nature of shipment loaded without
consent of carrier.
3. If unseaworthiness not due to
negligence of carrier.
4. If deviation was to save life or
property at sea.
Atty. Vivencio F. Abaño
WARSAW CONVENTION
A. Origin/Purpose E. Prescriptive Period (Arts. 26 & 29)
Signed first by 30 countries in October
1929 to establish uniform system of rules
for international air transportation of
persons, baggage, or goods. RP concurred
in 1950.
B. Liability of Carrier (Arts. 17-21):
1. Death or injury happening on board
aircraft or during
embarking/disembarking.
2. Destruction, loss, or damage to
checked baggage or goods while in
the charge of the carrier, whether
on board aircraft or in airport.
3. Damage occasioned by delay.
Defense: Exercise of extraordinary
diligence; impossibility to prevent
damage; contributory negligence.
C. Excluded:
Under WC, to be prosecuted as quasi-
delict or breach of contract under New
Civil Code: refusal to bard, bumping off,
downgrading, disrespect, abusive and
insulting language, etc.
D. Limited Liability (Arts. 22-25):
1. 125,000F per passenger, unless
higher limit is agreed upon.
2. 250F per kilo of checked
baggage/good unless declaration of
higher value and added payment
made.
3. 5,000F per handcarried baggage.
Condition: no willful misconduct
Stipulation to lower limit or to exempt
from liability is void.
-7-
1. In case of damage, written
complaint within 3 days from
receipt of baggage, and 7 days
from receipt of goods.
2. In case of delay, 14 days from
delivery of goods/baggage.
3. No action lies if complaint
beyond period, unless there is
fraud.
4. Action must be filed within 2
years from date of arrival, or
when ought to arrive, or when
transportation stopped.
F. Defendants (Art. 30):
1. In case of successive carriers,
the carrier in which the accident
or delay occurred, unless, by
express agreement first carrier
assumed liability for entire
journey.
2. As regards baggage or goods,
passenger/consignor may sue
against first carrier;
passenger/consignee against last
carrier; or against carrier in
which destruction, loss, or
damage occurred; all carriers
jointly and severally liable.
G. Jurisdiction (Art. 28):
Plaintiff has option to file for damages at:
1. Domicile of carrier
2. Principle place of business of
carrier
3. Where carrier has business
through which contract made
4. Place of destination
 Atty. Vivencio F. Abaño -8-
SPECIAL LAWS IN TRANSPORATION (B)

SALVAGE LAW SHIP MORTGAGE DECREE LAND TRANSPORTATION TRAFFIC IATA TARIFF RULES
(R.A. 2616) (P.D. 1521) CODE (R.A. 4136)
A. Definitions: A. Purpose of mortgage: 1. A motor vehicle must be registered for Under the rules of the International Air
the current year, as a condition for its Transportation Association (IATA), an
1. Service rendered to preserve the To finance the construction, acquisition, operation on a public road or highway. airplane ticket is valid for one year.
goods or ship which the owner purchase of vessel, or initial inspection 2. A person can still drive a vehicle even
has either abandoned in distress thereof. without possessing his driver’s license, That is the time allowed the passenger to
at sea or is unable to protect or albeit he may be violating traffic rules. begin and complete his trip. A passenger
secure. B. Conditions for preferred mortgage: (Manuel v. CA, 227 SCRA 29). ca no longer use an expired ticket to
2. Compensation to one by whose 3. A person driving with an expired and complete his trip. He must purchase a
assistance a ship or its cargo has 1. Registration with PCG unrenewed license is deemed not to new ticket for the remaining portion of his
been saved from impending 2. Affidavit of good faith have any license at all. journey (Air France v. CA, 126 SCRA
danger or recovered from actual 3. No waiver of preferred status 4. Insurance requires an “authorized 449).
loss. driver” who is either the insured of a
3. Vessel or cargo recovered from C. Preferred mortgage has priority over all person driving on insured’s order or
abandonment at sea. claims against the vessel, except: with his permission, provided he
1. Taxes, crew’s wages, general abides with licensing rules. A driver
B. Elements of valid salvage: average, salvage, damages with expired Traffic Violation Receipt
arising out of torts (TVR) or Temporary Operation Permit
1. Marine peril 2. Preferred mortgages registered (TOP) is not an authorized driver
2. Voluntary service prior in time within the meaning of insurance policy.
3. Success in whole or part 3. Maritime lien arising prior to 5. Mortgage, attachment, or other
registration of preferred encumbrances on a motor vehicle must
mortgage (Sec. 17) be registered and recorded on the face
of the Certificate of Registration.
D. Maritime lien for necessities:

Any person furnishing repairs, supplies,

tonnage, use of dry dock or other
necessities to any vessel, upon the order
of its owner or the latter’s authorized
representatives, shall have a maritime
lien on the vessel which may be enforced
by a suit in rem and it shall be necessary
to allege or prove that credit was given to
the vessel (Sec. 21)

MULTI-MODAL TRANSPORT
A. International Trade
Transport of goods is by more than one
carrier or mode of transportation.
Containerization enhances transport
capabilities in the transfer of goods from
ship to truck, train, plane, or other ship.
B. Definition
Multi-modal transport operator (MTO)
means any person who concludes a multi-
modal contract and assumes responsibility
for the performance thereof by a carrier.
Multimodal transport contract means a
single contract for the carrier of goods by
at least two different modes of transport.
Considering the variety of cultures,
languages, and commercial practices of
both ends of the trade, it is reasonable to
let one qualified operator organize and be
responsible and accountable for the entire
transport chain (UNCTAD-ICC Rules for
Multi-modal Transport)
Atty. Vivencio F. Abaño -9-
CONTRACTS IN MARITIME COMMERCE (B)
FREIGHT FORWARDING ARRESTRE/STEVEDORING CONTRACT OF TOWAGE
A. Forwarding Agent A. Stevedoring means all works performed on board A. Definition
vessel, such as loading or unloading cargo, stowing
It receives and arranges to forward or inside hatches, compartments, and on decks or open A contract for hire of services
send the goods to their destination by the cargo spaces on bard vessel. May include other by which a vessel is hired to
instrumentality of the actual carrier, services like: tow another vessel from one
without assuming the role and part to another for a
responsibility of the carrier, and is 1. Rigging/unrigging of ship’s gears consideration.
compensated for his services by the 2. Opening or closing of hatches
shipper. He is an agent and a 3. Snatching, centering to the hatch, opening, B. Entitled
warehouseman for the shipper, and must passing of cargo
exercise the care and diligence of a 4. Providing standard stevedoring gears and Only the owner of the towing
prudent man. equipment as required by cargo type vessel can ask for
5. Also: cleaning holds, shifting of cargoes, compensation for the towage.
B. Freight Forwarder shoring/unshoring of cargoes, Not the captain, even if the
lashing/unlashing of cargoes, rebagging and owner waived the claim for
A transport intermediary which publishes sweeping, and stuffing/unstuffing of the towage, unless the owner
its own tariff, issues its own bill of lading, containers on board vessel. assigned or conveyed his
and assumes all responsibilities of a right to the captain.
common carrier without operating its own Stevedoring refers to the handling of the cargo in the
vessel. This Nonvessel Operating Common holds of the vessel or between the ship’s tackle and
Carrier (NVOCC) acts a shipper in relation the holds of the vessel.
to the actual carrier, and as a carrier to
the shipper. He charges for the entire B. Arrastre means the set of shore-based cargo
distance, and assumes responsibility for handling activities which include the following:
the transportation of the goods from point
of receipt to point of destination. 1. Receive/load cargo from/to ship’s tackle with
the use of dock gangs and cargo handling
C. Cargo Consolidator equipment
2. Check cargo by marks and quantity,
It consolidates small shipments for acknowledge and sign tally sheets, sort, pile,
various consignors/consignees by stow, and classify cargoes in sheds/open
procuring vessel/container space from storage/warehouse, if not taken/delivered
carriers and issuing its own bill of lading. from truck
Its destination agents distribute the small 3. Check and recoup bad order and damaged
shipments to the consignees named in the cargoes caused by contractor
consolidator’s manifest. 4. Secure cargo from pilferage or losses while
under cargo handler’s custody
5. Provide manpower, equipment, and such
other necessary cargo handling gears for
receiving/ stowing/ delivery/ transfer/
shifting/ pelletizing cargo
Arrastre refers to the handling of cargo on the wharf or
between the establishment of the consignee or shipper
and the ship’s tackle.
 Atty. Vivencio F. Abaño - 10 -
PUBLIC SERVICE

PUBLIC UTILITIES REGULATORY AND FRANCHISING BODIES FUNCTIONS

Renders services essential to A. Franchising/Licensing
general public.
Impressed with public interest C.A. 146 P.D. 1 E.O.’s 1. Regulatory bodies grant CPC;
and concern. (1936) (1972) grant of CPCN requires prior
congressional franchise.
LTO/LTFRB (land transport) 2. Requirements: Filipino citizenship,
TRB (toll road) financial capability, public need.
3. Due process: notice and hearing.
PCG/MARINA (water
transport) B. Regulation
BOT PPA (ports)
(transportation) 1. Cancellation or suspension of
CAB (air transport)
Subject to POLICE POWER which CPN/CPCN; imposition of fine.
is legislative prerogative/power MIAA (NAIA airport) (Reasons: e.g. unreliable service,
PSC
CAAP (other airports) frequent accidents)
NTC 2. Due process: notice and hearing.
(Public Service
(Communication) LTO/LTFRB (land transport) (Reasons: franchise is property
Commission)
TRB (toll road) and not merely privilege; non-
impairment of contract if
1936-1972
investment made).
ERB-ERC (power)
BPW NEA (electric C. Rate Fixing/Determination
(power/waterworks) cooperatives)
1. Quasi-judicial function
CONGRESS delegates its power NWRB (waterworks)
2. Goal: balance between private
and responsibilities to regulate LWUA (water districts)
and public demands; just and
public utilities reasonable rate for both.
3. Fair return on investment vs.
confiscatory measures.
4. Affordability vs. discrimination

Special cases:
1. Local Government (Local Autonomy Code)
- franchising of tricycles
2. Special Economic Zones: CDC & SBMA
- communication franchises within their respective zones
Regulatory bodies/Administrative
and Quasi-Judicial Agencies

POTESTAS DELEGATA NON

DELGARI POTEST