II. TRANSPORTATION LAW b.

Depends on the extent of service whether such

A. Common carriers person or company held himself or itself out as ready
1. Concept to serve the public or a portion of the public generally
or conduct himself as a public utility.

Article 1732 of the Civil Code 2. Ancillary business

Article 1732. Common carriers are persons, There is no distinction on one whose

corporations, firms or associations engaged in the principal business of carrying goods and one who
business of carrying or transporting passengers or does the same by an ancillary activity.
goods or both, by land, water, or air, for
compensation, offering their services to the public. Ex: A junk shop dealer who loaded his trucks by Junk
to transfer it to another place- even if the
transportation of the goods is anxilliary to the main
Test for Determining a Common Carrier business of buying and selling the respondent
considered the act as common carrier.
The true test to determine if the carrier is a common
carrier is whether the undertaking to transport goods 3. Means Of Transportation
and or passenger is a part of the activity engaged in y The pipeline operators are common carriers
the carrier that he has held out to the general public that are subject to business taxes on common carrier.
as his business or occupation. The question to be The operators are common carriers even if the oil or
determined by the character of the business actually petroleum products are being transported through
carried on by the carrier not by any secret intent or pipelines.
mental reservation it may entertain or assert when
charged with duties and obligation the law imposes . 4. Carriers without fixed Route
They have no fixed route, but they are still
The test to determine whether or not one is a common called common carriers.
carrier is whether the person or entity for some
business purpose and with the general and limited Ex: Taxi
clientele offers the service of carrying transporting 4. Gratuitous/ For hire or compensation
passenger or goods both for compensation.
2. Common carrier vs. private carrier
Elements:
Common Carrier Distinguished from a Private Carrier
1. The common carrier us engaged in the business of Common Carrier Private Carrier
carrying goods for others as a public employee 1. Offers its service to 1. Does not offer the
holding himself ready to engage in the transportation the public service to public
for goods for the person generally as a business and 2. Extraordinary diligence 2. Diligence of a good
not casual operation. faither and a family
2. He must undertake to carry good of the kind to . The defense of due 3. The diligence of
which business is confined. diligence in the selection good faither is allowed
3. He must undertake to carry by the method by which and supervision of an
his business is conduced and over his established employee is not available
roads to common carrier
4. The transportation is for hire. because the degree of
Characteristics diligence is diligence is
extraordinary diligence
1. Limited Clientele
Not necessarily that one holds himself out as
Liability of TNC and TNVS
serving or willing to serve the public as a class at
large to be considered as engaged in public service, it
A. TNVS ( owner ) of the car
is only necessary that it must be impressed with
A public utility vehicle authority given
public interest .
Franchise by the LTFB to provide public
service( Driver) they provide door to door without a
a. Public utility is not defined by the number of people
specific route. Liable: From the time the TNVS is
actually served nor put the fact that services rendered
online and offers its service to riding public
under the contract prevent a company from being a
public utility, however, casual, incidental service
Common carrier: liability starts as soon as they offer
devoid of any public character is not brought
services to the public.
within the category of public utility.
B. TNC ( GRAB)
A TNC is an organization whether
corporation, partnership ,sole proprietor or other form
that provides a pre-arranged transportation services the transportation of goods and service but also in the
for compensation using a pre-arranged transportation issuance of the contract of carriage including the
services for compensation using an online enable ticketing operation
application or platform to connect passenger using
their personal vehicles. Example:
1. When the passenger was not able to board
TNC is a transport provider, due care must despite being given a boarding pass. Thus
be exercised by TNC in accrediting the driver. Due an airline issues a ticket to a passenger
care must be exercised by the TNC in accrediting confirmed in a particular flight on a certain
TNVS and will be liable if it allows ineligible drivers. date a contract of carriage arises and the
passenger has every right to expect that he
Liability: From the time TNVS accepts passenger would fly on the said date. In case that
happens, there is a breach of contract of
All vehicles that operate under Grab must have carriage
certificate of public convenience. Therefore, the 2. When the passenger accommodation was
TNVS applicant must e a vehicle owner or one downgraded from first class to economy the
whose name appears in the OR/CR of the vehicle. carrier is liable for breach of contract of
GRABCAR was fully legalized after being carriage.( Cathay Pacific vs Spouses
accredited as the Transportation Network Arnulfo)
Company ( TNC) by the Land Transportation
Franchising Regulatory Board B. Obligations and liabilities
1. Vigilance over goods
Exempting causes: defenses available to common
Q: Are transport providers TNC liable for the death carrier in case of loss, destruction or deterioration of
or injuries suffered by passenger as well as the goods.
damage, loss and deterioration of the goods that a. Flood , storm, earthquake , lighting or other
they carry? natural causes
A: Yes. TNC is treated as a transport provider whose b. Acts of public enemy in war whether
accountability commences from the acceptance by its international or civil
TNVS. On the other hand, TNVS as a common carrier c. Acts or omission of shipper or passenger
attaches from the time the TNVS is online and offers d. Character of the goods or defects in the
its service to the riding public. Here, it is the TNVS packing container
that is declared as the common carrier. e. Order or act of competent authority
f. Exercise of extraordinary diligence
Since it is the TNVS and not the TNC that is declared
as common carrier engaged in pubic service it is the ACT Or omission of shipper:
TNVS and not the TNC that secures certificate of A carrier who accepts the goods notwithstanding such
public convenience from the LTFRB condition it is not relieved from liability for loss or
injury resulting therefore. If the improper packaging is
3. Diligence required known to the carrier and apparent at hits face but he
Article 1733: Common carrier from the nature of nevertheless accepts the same without protest or
their business and for reason of public policy are exception he is not relieved of liability from damage
bound to observe extraordinary diligence in the resulting therefrom
vigilance of their goods and for the safety of their
passenger transported by them according to the 2.Safety of passengers
circumstance of each case. Presumption: The failure of the common carrier to
bring the passenger safely to its destination
Effect: In the contract of carriage there is a immediately raises the presumption that the failure is
presumption of negligence when the passenger dies due to the fault and negligence of the carrier.
or is injured. Therefore, there is no need for the court
to make an express finding of fault or negligence o the Void Stipulation:
part of the common carrier. This statutory 1. Stipulation where the responsibility of the
presumption can only be overcome by evidence that common carrier for the safety of its
the carrier exercised extraordinary diligence passenger is dispensed with or lessened
(I prove mo nalang that they exercised extraordinary by stipulation by posting of notice , by
diligence in preventing the damage) statement in the ticket or otherwise
Q: Does this exist only at the time of Note:
transportation of goods and carriage? General Rule: The responsibility of common
A: No. Common carriers are required to exercise carrier cannot be dispensed with or lessened
extraordinary diligence in the performance of their by stipulation. This rule applies
obligation under the contract or carriage. This notwithstanding the reduction of fare.
extraordinary diligence must be observed not only for Exception:
 the injuries she suffered she sued ZRT
a.When the passenger is carried out gratuitously a company from damages. ZRT denied liability
stipulation limiting liability for negligence is valid on the ground that the guard is independent
except for willful act or gross negligence contractor
A: ZRT cannot deny liability. In the discharge of its
commitment to ensure the safety of common carrier.
2. Stipulation limiting the liability for willful In the discharge of its commitment to ensure the
act or gross negligence safety of passenger , the carrier may choose to hire
its own employee or to avail itself of the services of an
Duration: outsider or an independent firm to undertake the task.
The diligence of the common carrier starts when the In either case the common carrier is not relieved from
passenger is placed in the proper care and custody of responsibility under the contract of carriage
the common carrier until the time the passenger
safely alights from and is given reasonable 2. A contract of carriage was created from the
opportunity to leave the premises of common carrier moment Richard paid the fair and entered
which includes the time he looks for and claims his into the premises of the common carrier.
luggage. The act that he did not board the train is not
a defense. The common carrier is liable for
the death of Ricardo in failing to exercise
C. Defenses available to a common carrier extraordinary diligence imposed upon a
1. Proof of negligence common carrier. The law requires common
In the contract of carriage, there is a presumption of carrier to exercise utmost diligence of a very
negligence, and hence there is no need to prove cautious person with due regard to all
negligence when the goods are not properly circumstance not only during the course of
transferred o when the passenger did not arrive safely the trip but for so long as the passenger are
in its destination within the premises and where ought to be in
2. Due diligence in the selection and supervision pursuance of the contract of carriage
of
Employees (b) Other passenger and stranger
The liability of common carrier does not cease upon
proof that they exercised diligence of a goo father of a A common carrier is responsible for the injuries
family in the selection and supervision of their suffered by the passenger on account of the willful act
employee of the stranger if the common carrier employee
through exercise of due diligence could have
Article 1759. Common carriers are liable for the prevented or stopped the act or omission.
death of or injuries to passengers through the
negligence or wilful acts of the former's Note: A carrier is not an absolute insurer for the safety
employees, although such employees may of the passenger . The negligence of the employee
have acted beyond the scope of their authority does not come into play when it observed nothing
or in violation of the orders of the common which would rouse their suspicion that the men were
carriers. armed and are about to carry an unlawful act.

3. Fortuitous event
Force Majure:
(a) Altercation with the employee of the 1. Natural disaster is the proximate and only
common carrier cause of the loss
Common carriers are liable for the death of or injuries 2. The common carrier should have exercise
for passenger through the negligence or willful act of due diligence to prevent or minimize the loss
the former employee although such employee may before during and after the occurrence of the
have acted beyond the scope of their authority in natural disaster
violation of the order of the carrier. 3. Common carrier should not incur delay
Notes:
Ex:Although the assault happened within the course 1. Fire : It is not one of those that exempts
of the employee duty . It is no defense for the carrier a common carrier from the destruction of
that the act was done in excess of authority or in goods
disobedience of the carrier’s order. The carrier is 2. Hijacking is not considered a force
absolute in a sense that it practically secures the majure except when dictated by
passenger from assault by its own employee. irresistible force. To be exempt from
liability there must be proof that 1.
Example: Extraordinary diligence was exercised
1. Marjorie while waiting for the train to arrive 2.Stipulated with the shopper of the
had a fist fight with the guard on duty. For goods to limit its liability for the loss
 destruction and deterioration of the D. Extent of liability
goods to a degree less than ordinary In a contract of carriage of goods: When does
diligence extraordinary diligence commence
3. For a typhoon to relieve the person from A: The extraordinary responsibility of common carrier
liability it must be the proximate cause of last from the time the goods are unconditionally
the same. In one case the owner left the placed in the possession of and received by the
car in the repair store for it to be carrier for transportation until the same is actually
fixed ,however while in the custody of delivered to the buyer or consignee actually or
the repair shop there was a typhoon constructively.
which destroyed the parts of the car. Is -The liability of the carrier begins with the actual
This fortuitous event? delivery of the goods or transportation and not the
A: No. For typhoon to become a natural disaster mere formal execution of a receipt of bill of lading
would relieve the common carrier from liability if it is because of suc issuance is not necessary to complete
the proximate and only cause of the damage. The fact delivery and acceptance
that the bus developed engine trouble and extensive
repair work was necessary affirm that the force major -Note :
was not the proximate cause of the damage 1. The obligation of a common carrier to ensure
extraordinary diligence does not cease when the
Requisite for fortuitous event goods are turned over to the customs authority.
1. Absence of negligence However, the parties may agree to limit the liability
2. Absence of delay of the carrier in connection therewith considering
3. Due diligence to prevent the loss that the goods will still go through the inspection of the
authorities.

4. Contributory negligence Q: X took the Benguet bus from Baguio going to

If the shipper, or owner merely contributed to the Manila. He deposited his maleta in the baggage
destruction or deterioration of the goods the proximate compartment of the bus common to all passenger.
cause thereof being negligence of common carrier, He did not declare his baggage nor pay the
the latter is liable for damages which however shall be charges contrary to the regulation of the bus
equitably reduced. Even if the loss , destruction or company. When X got off, he could not find his
deterioration of goods should be caused by the maleta which was taken by another passenger.
character of goods or faulty nature of packing of Determine the liability of the bus company”
container the common carrier must exercise due A: The bus company is liable for the loss of the
diligence to lessen the loss. maleta. The duty of extraordinary diligence is due on
5. Doctrine of last clear chance such goods as are deposited or surrendered to the
The doctrine of last clear chance provides that if both common carrier for transportation the fact that the
parties are negligent but the negligent act of one is maleta was not declared is not consequential as long
appreciably later in point than the other whose fault or as it was received by the common carrier.
negligence brought about the occurrence of the
incident one that had a last clear chance or 2.The obligation of the carrier remains full force and
opportunity to avoid the impeding harm but failed to effect even when the goods are temporarily unloaded
do so Is chargeable with the consequences arising and stored in transit unless the shipper or owner has
therefrom. made use of the right to stoppage in transitu

Note: 1. Recoverable damages

1. The principle of last clear chance applies a. Indemnity for death
only in a suit between owners and drivers indemnity for loss or earning capacity
of the two colliding vehicle. It does not c. Moral damages
arise where the passenger demands Reasonableness or damage :
responsibility from the carrier to enforce its 1. Life expectancy
obligation for it would be inequitable to 2. 2.Pecuniary loss loss of support and service
exempt the negligent driver and its owner on 3. Moral and mental suffering
the ground that the other driver is negligence 4. Lost of earning capacity

-The proximate cause of the collision was the 2. Stipulations limiting liability
negligence of the petitioner in ensuring that motorist
and pedestrian alike may safely cross the railroad Lessening the degree of diligence in cases of
tracks. Here the driver and passenger of the jeepney goods
did not have any participation on the incident . Thus Q: What is the effect of stipulation regarding the
absent negligence on the part of the respondent this exercise of diligence to less than extraordinary ( In
cannot apply case of carriage of goods)
A: Valid. As long as the stipulation is 1. In writing 2. 1. That the goods are transported at the risk of
Supported by a valuable consideration other than the owner of the shipper
service rendered by the carrier and reasonable and 2. That the common carrier will not be liable for
just not contrary to public policy. any loss destruction or deterioration of the
good
When is the obligation of the commo carrier to 3. That the common carrier need not observe
observe extraordinary diligence in the carriage of any diligence in the custody of the goods
goods reduced to ordinary diligence? 4. That the common carrier shall exercise a
a. When the seller exercised his right diligence less than that of good father of a
to stoppage in transitu family or of a man of ordinary prudence in
b. When there is a stipulation the vigilance over the movable transported
( consideration) 5. That the common carrier shall not be
c. Hand carried baggage responsible for the act or omission of his or
d. If the loss destruction or its employee
deterioration of the goods is caused 6. That the common carrier liability for act
by the faulty nature of the packing committed by thieves or of robbers who do
or of container the common carrier not act with grave and irresistible threats ,
is entitled only to exercise due violence or force is dispensed with
diligence to forestall the loss diminished
Stipulation of Diligence 7. That the common carrier is not responsible
The parties may voluntarily modify the for the loss destruction or deterioration of the
duty of the carrier by express provision of their goods on account of the defective condition
contract. However in certain instances it may of the car, vehicle , ship , airplane or other
be invalid . equipment used in contract of carriage
Limitation of liability to fixed amount
1. Goods Q: May the common carrier limit its liability to a fixed
amount in case of loss of goods?
A: yes provided that the amount is reasonable and
A stipulation between the common carrier and
valid under the circumstances and has been fairly
the shipper or owner limiting the liability of the
agreed upon.
former for the loss, destruction or deterioration
When limiting stipulation cannot be invoked
of the goods to a degree less than
extraordinary diligence ( limitation of
1. When the agreement limiting the common carrier’s
diligence)
liability is annulled by the shipper and owner if the
a. In writing signed by the
common carrier refused to carry the goods unless the
shipper
former agreed too such stipulation
b. Supported by valuable
2. If the carrier delays the transportation of the goods
consideration
and
other than the service rendered by the
3 If the carrier changes the stipulation or usual route.
common carrier
c. reasonable just and not
The determination as to the reasonableness of the
contrary to
stipulation depends on the prevailing circumstances.
public policy
The circumstances of the case must be analyzed to
2. Passenger ( No lessening of diligence but
determine if there is a ground to declare that the
there can be limiting liability)
stipulation is just or reasonable or unjust or
There can be no stipulation lessening the
unreasonable.
utmost diligence that is owed to passenger, a
common carrier may also exercise utmost
Q: Juan a paying passenger noted that the
diligence to gratuitous passenger ( lessen the
stipulation at the back of the bus ticket stating
liability)
that the liability of the bus company is limited to
a. If the passenger is carried gratuitously , a
P1,000,000 in case of injury and P500 in case of
stipulation that limits the common carrier’s
loss or damage caused by the negligence or
liability is valid but not for willful acts or gross
willful act of its employee. Upon arrival, Juan got
negligence . ( There can be a stipulation as to
into an alteracation with the ticket conductor who
the liability but not in the diligence)
pulled out a knife and inflicted several wounds on
Juan. The bus driver intervened heaping abusive
Example: COGSA: You can still declare a language on Juan and completely destroying the
higher value. The carrier is liable but since he baggage which contained expensive goods worth
did not declare a higher value he can only P3,000. The hospital expense of Juan is at least
recover 500 dollars from COGSA. P6000 is the bus company liable?

Void stipulation: A:
 1. The common carrier is liable for the injuries the bus driver that he had valuable items in his
inflicted upon Juan by its employee although bag which was placed near his feet. Since he had
the employee acted beyond the scope of its not slept for 24 hours, he requested the driver to
authorities. The common carrier keep an eye on the bag should he doze off during
responsibility for these acts cannot be the trip.
eliminated by stipulation by posting notice by a) While Pasahero was asleep another passenger
statement on tickets or otherwise. ( Here took the bag away and alighted at Guagua
Juan is not a gratuitous passenger) Pampanga. Is victory Liner is liable Paserho?
2. The rule is different with respect to loss and Explain?
destruction of the goods. Under Article 1750
a contract fixing the sum that can be Responsibility of common carrier in the case of loss or
recovered by the owner or shipper for loss damage to hand carried baggage is governed by
and destruction of goods is valid if it is necessary deposit. The common carrier is thus liable
reasonable and just under the circumstance for the loss of personal property caused by its
agreed upon. employee or by stranger

4. Limitations under the Warsaw Convention

Kinds of stipulation:
1. Exempting the carrier from any and all Scope: The Warsaw Convention applies to all
liability for loss or damage occassioend by international carriage of person, luggage or goods
its own negligence. performed by aircraft for hire. It applies equally to
2. Providing for an unqualified limitation of gratuitous carriage by aircraft performed by an air
such liability to an agreed valuation transport undertaking.
3. One limiting the liability of the liability of
the carrier to an agreed valuation unless Under the Warsaw Convention, the air carrier is liable
the shipper declares a higher value or in any of following cases :
freight
Only 3 is valid. 1. Death or injury to passenger while on board,
embarking and disembarking
Rules: What is there is no declaration? 2. Loss, destruction and damage to baggage
Remember: A stipulation that the common carrier during the carriage
liability is limited to the value of the goods a. This means that simple loss of
appearing in the bill of lading is valid. luggage without the improper
-A stipulation in a contract of carriage that a carrier conduct on the part of the carrier’s
will not be liable beyond the specified amount unless official and employee
the shipper declares the goods to have greater value
b. The period of responsibilities
is deemed as valid and will operate to limit the carriers
include the period during which the
liability: It is the duty of the shipper to declare a higher
value rather than the carrier to demand the true value baggage is in the charge of the
of the goods. ( ang importante lang is that you must carrier whether in an airport or any
give the shipper a fair opportunity to declare the place whatsoever.
actual value of the goods) 3. Delay in the flight

Liability for baggage of passenger “Bumping off”: It is not delay it is the refusal to
a. Checked in baggage transport passenger with confirmed reservation to
If the baggage is in the custody of common carrier the their planned and contracted destinations totally
latter is obliged to observe extraordinary diligence. foreclose the passenger right to be transported. ( Dito
The presumption of negligence apply hindi nakasakay at all while sa delay nakasakay pero
delayed).
If the baggage is in the custody of passenger, the
carrier is liable of depositary provided that a. Notice Delay: as delay means to prolong the time of or
was given to him or his employee 2. The passenger before to stop, detain or hinder for a time or cause
took necessary precaution which the carrier had someone or something to be begins in schedule or
advised relative to the care and vigilance of the usual rate of movement.
baggage. The baggage in transit is deemed as
necessary deposit since diligence required of the Prescriptive Period:
carried depositary is merely ordinary diligence.
b. Baggage in possession of stranger General Rule: The action against the carrier will
prescribe if it is not brought within two years from the
Q: Pasahero, a paying passenger, boarded a date of arrival of the air carrier at the destination or
Victory Liner bus bound for Olongapo. He chose a it should have arrived or from the date the
seat at the front near the bus driver. Pasahero told transportation stopped.
Limitations: *This is covered by the Warsaw convention which
prescribes in two years
1. Damage to baggage: the complainant must
file his or her written complaint within seven 2. Humiliation he suffered at the hands of the
days from the date of the receipt of the airline employee
checked in baggage
2. Delay in the delivery: The complaint must be *This is covered by the Civil Code on torts which
made at the latest within 21 days from the prescribes in four years.
date of receipt of the baggage

Limitation OF Liability :

1. Loss or damage to goods : The limit is $20 or

9.07 per kilo unless the shipper declares a
higher value
a. For unchecked baggage it is : $400
2. Death or injury to the passenger
a. The liability does not exceed
$25,000

Q: May the passenger recover an amount greater

than the amount set forth in the convention:

1. If at the time the package were handed over

the carrier the passenger made a special
declaration of the value of delivery and has
paid supplementary sum
2. When the air carrier failed to raise timely
objection during the trial and question and
answer regarding the actual claims and
damage sustained by the passenger were
asked.

Venue :

1. The court where the carrier is domiciled

2. The court where the carrier has its principal
place of business
3. The court where the carrier has an
establishment which the contract has been
made
4. The court of the place of destination.

Q: Can a claim covered under the warsaw convention

be brought in local laws?

A: No. Article 24 of the Warsaw convention excludes

other remedies by further providing that in case
covered by Article 18 and 19 any action for damage
however founded may be brought subject to the
condition and limits set out in the convention.
Therefore a claim covered under the warsaw
convention can no longer be recovered under local
law if the statute of limitation of two years has passed

When does the Warsaw Convention not apply

Application of warsaw:

1. Damage to passenger baggage