Transportation Law - Course Outline

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Adrian C.

Cabana

Transportation Law
Course Outline
Atty. Rodolfo Rabaja

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.
The above article makes no distinction between one whose principal business
activity is the carrying of persons or goods or both, and one who does such carrying
only as an ancillary activity. Article 1732 also carefully avoids making any distinction
between a person or enterprises offering transporting services on a regular or
scheduled basis and one offering such service on an occasional, episodic or
unscheduled basis.

Article 1733 - Common carriers, from the nature of their


business and for reasons of public policy, are bound to observe
extraordinary diligence in the vigilance over the goods and for the
safety of the passengers transported by them, according to all the
circumstances of each case.

Such extraordinary diligence in the vigilance over the goods is further


expressed in Articles 1734, 735, and 1745 Nos. 5, 6, and 7, while the
extraordinary diligence for the safety of the passengers is further set
forth in Articles 1755 and 1756

The hazards of modern transportation demand an extraordinary diligence in the


vigilance over the good they carry. A common carrier is invested with public interest

The relationship between common carrier and shipper contains factors which make up
the concept of trust However, a common carrier should not be considered as an
absolute insurer against all risks of travel
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.

In the instances enumerated in this article, the common carrier is NOT responsible.
However, if there be fault on the part of the carrier, it will be LIABLE.

Article 1735 - In all cases other than those mentioned in Nos.


1, 2, 3, 4, and 5 of the preceding article, if the goods are lost,
destroyed or deteriorated, common carriers are presumed to have
been at faulty or to have acted negligently unless they prove that they
observed extraordinary diligence as required in Article 1733.

General Rule: Carrier is presumed at fault

Exceptions: Here, the carriers is NOT presumed to be at fault BUT shipper may prove
carrier’s fault, in which case the carrier will be liable.

Article 1736 - 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 the transportation until
the same are delivered actually or constructively, by 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 carrier is in POSSESSION, so it must be responsible. The obligation of the carrier
to carry the goods includes the duty not to delay their transportation, so that if the goods
are lost or damaged by reason of an unjustified delay, the carrier is held liable therefor.

Article 1737 – The common carrier’s duty to observe extraordinary


diligence in the vigilance over the goods remains in full force and
effect when they are temporarily unloaded or stored in transit, unless
the shipper or owner has made use of the right of stoppage in transitu.

Note: that liability exists even if the goods are: temporarily unloaded or stored in transit
Exception is when the right of stoppage in transit has been exercised. Here strictly
speaking, there is no more contract of carriage. And the carrier as depositary, will also
be laible as such depositary, and not as carrier

Article 1740 - if the common carrier negligently incurs in delay


in transporting the goods, a natural disaster shall not free such carrier
from responsibility

If the natural disaster occurs when the carrier is already in default (because of its
negligence), the carrier can still be held liable

Aritcle 1742 - Even if the loss, destruction or deterioration of


the goods should be caused by the character of 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

This article stresses the duty of the carrier to prevent or minimize the loss, even if it was
not at fault

Article 1746 - An agreement limiting the common carrier’s


liability may be annulled by the shipper or owner if the common carrier
refused to carry the goods unless the former agreed to such
stipulation

Stipulation is vitiated by threat or undue influence


a) The agreement here is only voidable, not void
b) There is a sort of threat or undue influence here
c) That no judicial action is needed for the annulment
Article 1755 - A common carrier is bound to carry the
passengers safely as far as human care and foresight can provide,
using the utmost diligence of very cautious persons with a due regard
for all the circumstances

This high degree of care is imperatively demanded by the preciousness of human life,
and by the consideration that every person must in every way be safeguarded against
all injury

Article 1756 - In case of death of or injuries to


passengers, common carriers are presumed to have been at fault or
to have acted negligently unless they prove that they observed
extraordinary diligence as prescribed in Articles 1733 to 1735
Culpa Contractual, as in the case of the contract of common carriage, the moment a
passenger dies or is injured, the carrier is presumed to be at fault

Article 1758 - When a passenger is carried gratuitously, a


stipulation limiting the common carrier’s liability for negligence is valid,
but not for wilfull acts or gross negligence. The reduction of fare does
not justify any limitation of the common carrier’s liability

Even if a passenger is carried free, he is still a passenger, and therefore ordinarily,


extraordinary diligence would still be required. However, for obvious reasons, the
stipulation referred to in the first part of this article is expressly allowed

Article 1759 - Common carriers are liable for the death of or


injuries to passengers through the negligence or wilfull acts of the
former’s employees, although such employees may have acted
beyond the scope of their authority or in violation of the orders of the
common carriers. This liability of the common carriers does not cease
upon proof that they exercised all the diligence of a good father of a
family in the selection and supervision of their employees
The carrier is liable even if; the employees may have acted beyond the scope of their
authority, or they acted in violation of the orders of the common carriers

Article 1761 - The passenger must observe the diligence


of a good father of a family to avoid injury to himself

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