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TRANSPORTATION LAW

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+A. what is a Common Carrier? - 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. (Art. 1732, Civil Code).

- One that holds itself out as ready to engage in the transportation of goods for hire as a public employment and not as a casual occupation. (De Guzman vs. Court of Appeals, No. L-47822, December 22, 1988)CARRIAGE OF GOODS

CARRIAGE OF PASSENGERS

Parties

1. Common carrier

2. Shipper

3. Consignee1. Common carrier

2. Passenger

Cause of liability

Delay in delivery, loss, destruction, or deterioration of the goodsDeath or injury to the passengers

Duration/Time of liability

From the time the goods are unconditionally placed in the possession of, and received by the carrier for transportation until the same are delivered actually or constructively by the carrier to the consignee or to the person who has the right to receive them. (Art. 1736)

( It remains in full force and effect even when they are temporarily unloaded or stored in transit unless the shipper or owner has made use of the right of stoppage in transitu. (Art. 1737)

( It continues to be operative even during the time the goods are stored in a warehouse of the carrier at the place of destination until the consignee has bee advised of the arrival of the goods and has had reasonable opportunity thereafter to remove them or otherwise dispose of them. (Art. 1738)

( Delivery of goods to the custom authorities is not delivery to the consignee. (Lu Do v. Binamira, 101 Phil 120)The duty of a common carrier to provide safety to its passengers so obligates it not only during the course of the trip, but for so long as the passengers are within its premises and where they ought to be in pursuance to the contract of carriage. (LRTA v. Navidad, [2003])

( All persons who remain on the premises within a reasonable time after leaving the conveyance are to be deemed passengers, and what is a reasonable time or a reasonable delay within this rule is to be determined from all the circumstances, and includes a reasonable time to see after his baggage and prepare for his departure. (La Mallorca v. CA, 17 SCRA 739 ; Abiotiz Shipping Corporation v. CA, 179 SCRA 95)

( It is the duty of common carriers of passengers to stop their conveyances a reasonable length of time in order to afford passengers an opportunity to enter, and they are liable for injuries suffered from the sudden starting up or jerking of their conveyances while doing so. The duty which the carrier of passengers owes to its patrons extends to persons boarding the cars as well as to those alighting therefrom (Dangwa Trans Co., Inc. vs. CA 202 SCRA 574).

Presumption of negligence

Art.1735 Civil Code

Reason: As to when and how goods were damaged in transit is a matter peculiarly within the knowledge of the carrier and its employees. (Mirasol v. Dollar, 53 PHIL 124)

Mere proof of delivery of goods to a carrier in good order and the subsequent arrival of the same goods at the place of destination in bad order makes for a prima facie case against the carrier. (Coastwise Lighterage Corp. v. CA, 245 SCRA 796)Art.1755 Civil Code

Reason: The contract between the passenger and the carrier imposes on the latter the duty to transport the passenger safely; hence the burden of explaining should fall on the carrier.

Defenses

1. Ordinary circumstance: Exercise of extraordinary diligence (Art. 1735)

2. Special circumstances:

a. Flood, storm, earthquake, lighting, or other natural disaster or calamity (plus force majeure)

b. Act of the public enemy in war, whether international or civil

c. Act or omission of the shipper or the owner of goods

d. The character of the goods or defects in the packing or in the containers

e. Order or act of competent public authority (Art. 1734)1. Exercise of extraordinary diligence (Art. 1756)

2. Caso fortuito

Valid stipulations

1. Reduction of degree of diligence to ordinary diligence, provided it be:

a) In writing, signed by the shipper or owner;

b) Supported by a valuable consideration other than the service rendered by the carriers; and

c) Reasonable, just and not contrary to public policy. (Art. 1744)

2. Fixed amount of liability: A contract fixing the sum to be recovered by the owner or shipper for the loss, destruction or deterioration of the goods, if it is reasonable and just under the circumstances and has been fairly and freely agreed upon. (Art. 1750)

3. Limited liability for delay: An agreement limiting the common carriers liability for delay on account of strikes or riots (Art. 1748)

4. Stipulation limiting liability to the value of the goods appearing in the bill of lading, unless the shipper or owner declares a greater value. (Art. 1749)

( The diligence required in the carriage of the goods may be reduced by only one degree, from extraordinary to ordinary diligence or diligence of a good father of a family. (Art. 1744, Art. 1745, no. 4)Stipulation limiting liability when a passenger is carried gratuitously, but not for willful acts or gross negligence. (Art. 1758)

Void stipulations

1. That the goods are transported at the risk of the owner or shipper;

2. That carrier will not be liable for any loss, destruction or deterioration of the goods;

3. That the carrier need not observe any diligence in the custody of the goods;

4. That the carrier shall exercise a degree of diligence less than that of a good father of a family over the movable transported;

5. That the carrier shall not be responsible for the acts or omissions of his or its employees;

6. That the carriers liability for acts committed by thieves or robbers who do not act with grave or irresistible threat, violence or force is dispensed with or diminished;

7. That the carrier is not responsible for the loss, destruction or deterioration of the goods on account of the defective condition of the car, vehicle, ship or other equipment used in the contract of carriage. (Art. 1745)Dispensing with or lessening the extraordinary responsibility of a common carrier for the safety of passengers imposed by law by stipulation, by posting of notices, by statements on tickets or otherwise. (Art. 1757)

CAUSE OF ACTION/BREACH OF CONTRACT

1. Culpa contractual (breach of contract)( Only the carrier is primarily liable and not the driver, because there is no privity between the driver and the passenger.

( Basis: Art.1759, NCC.

( No defense of due diligence in the selection and supervision of employees.

2. Culpa aquiliana (quasi-delict)( The carrier and driver are solidarily liable as joint tortfeasors.

( Basis: Art. 2180, NCC.

( Defense of due diligence in the selection and supervision of employees is available. Exception: maritime tort resulting in collision. (See notes on Collision)3. Culpa criminal (criminal negligence)( The driver is primarily liable. The carrier is subsidiarily liable only if the driver is convicted and declared insolvent.

( Basis: Art. 100, RPC.

( In case of injury to a passenger due to the negligence of the driver of the bus on which he is riding and of the driver of another vehicle, the drivers as well as the owners of the two vehicles are jointly and severally liable for damages. It makes no difference that the liability of the bus driver and owner springs from contract while that of the owner and driver of the other vehicle arises from quasi-delict. (Fabre vs. CA)

B. Characteristics Of A Common Carrier Art. 1732 of the Civil Code avoids any distinction between one whose principal business is the carrying of persons or goods or both, and one who does such carrying only as an ancillary activity (sideline).

It also avoids a distinction between a person or enterprise offering transportation service on a regular or scheduled basis and one offering such service on an occasional, episodic or unscheduled basis. Article 1732 does not distinguish between a carrier offering its services to the general public, that is the general community or population, and one who offers services or solicits business only from a narrow segment of the general population. A person or entity is a common carrier even if he did not secure a Certificate of Public Convenience The Civil Code makes no distinction as to the means of transporting, as long as it is by land, water or air. The Civil Code does not provide that the transportation should be by motor vehicle. A person or entity may be a common carrier even if he has no fixed publicly known route, maintains no terminals, and issues no tickets. Undertakes to carry for all people indifferently and thus is liable for refusal without sufficient reason (Lastimoso vs. Doliente, 3 SCRA , [1961]);

Cannot lawfully decline to accept a particular class of goods for carriage to the prejudice of the traffic in these goods;

No monopoly is favored (Batangas Trans. vs. Orlanes, 52 Phil. 455);

Provides public convenience.c. Tests Whether A Party Is A Common Carrier Of Goods:1. He must be engaged in the carrying of goods for others as a public employment, and must hold himself out as ready to engage in the transportation of goods or persons generally as a business and not as a casual occupation.

2. He must undertake to carry goods of the kind to which his business is confined;

3. He must undertake to carry by the method by which his business is conducted and over his established roads; and

4. The transportation must be for hire.

e. Distinctions Between Common Carrier and Private CarrierCommon CarrierPrivate Carrier

As to passengers

Holds himself out for all people indiscriminately.Contracts with particular individuals or groups only.

As to required diligence

Requires extraordinary diligence.Requires only ordinary diligence.

As to state regulation

Subject to regulation.Not subject to regulation.

As to stipulation on limiting liability

Parties may not agree on limiting the carriers liability except when provided by law.Parties may agree on limiting the carriers liability, provided not contrary to law, morals or good customs.

Presumption as to fault and negligence

Presumption of fault or negligence applies.No fault or negligence is presumed.

As to laws applicable on damages

Law on common carriers.Law on obligations and contracts.

b. Extraordinary Diligence REQUIREMENT OF EXTRAORDINARY DILIGENCECommon Carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence on the vigilance over goods and for the safety of the passengers transported by them according to all the circumstances of each case. (Art. 1733, Civil Code)Coverage

1. Vigilance over goods (Arts. 1734-1754)2. Safety of passengers (Arts. 1755-1763)Passenger - A person who has entered into a contract of carriage, express or implied, with the carrier. They are entitled to extraordinary diligence from the common carrier.

Persons Not Considered As Passengers1. One who has not yet boarded any part of a vehicle regardless of whether or not he has purchased a ticket;

2. One who remains on a carrier for an unreasonable length of time after he has been afforded every safe opportunity to alight;

3. One who has boarded by fraud, stealth, or deceit;

4. One who attempts to board a moving vehicle, although he has a ticket, unless the attempt be with the knowledge and consent of the carrier;

5. One who boarded a wrong vehicle, has been properly informed of such fact, and on alighting, is injured by the carrier; or

6. One who rides any part of the vehicle which is unsuitable or dangerous or which he knows is not designed or intended for passengers.

RULES ON PRESUMPTION OF NEGLIGENCE:A.In the Carriage of Goods: In case of loss, destruction and deterioration of goods, common carriers are presumed to be at fault or have acted negligently, unless they prove that they exercise extraordinary diligence. In the transport of goods, mere proof of delivery of goods in good order to a carrier and the subsequent arrival of the same goods at the place of destination in bad order makes for a prima facie case against the carrier.B.In the Carriage of Passengers: In case of death or injury to passengers, common carriers are presumed to be at fault or have acted negligently, unless they prove that they exercise extraordinary diligence. .(Art. 1755,NCC) The court need not make an express finding of fault or negligence of common carriers. The law imposes upon common carriers strict liability, as long as it is shown that there exists a relationship between the passenger and the common carrier and that injury or death took place during the existence of the contract.

The common carrier is not an absolute insurer against all possible risks of transportation or travel. (Pilapil vs. CA et al, 180 SCRA 546)Doctrine of Proximate Cause is NOT applicable to contract of carriage

The injured passenger or owner of goods need not prove causation to establish his case. The presumption arises upon the happening of the accident. (Calalas v. CA, 383 SCRA, [2002])DEFENSES OF COMMON CARRIERS

General Rule: Common carriers are responsible for the loss, destruction or deterioration of the goods.

Exceptions: The same is due to any of the following causes only:

a. Flood, storm, earthquake, lightning or other natural disaster or calamity;

b. Act of public enemy in war, whether international or civil;

c. Act or omission of the shipper or the owner of the goods;

d. The character of the goods or defects in the packing or in the containers;e. Order or act of competent authority. (Art.1734, Civil Code)

The above enumeration is exclusive. If not one of those enumerated is present, the carrier is liable. (Belgian Chartering and Shipping, N.V. v. Phil. First Insurance Co.,Inc., 383 SCRA, 2002)

The exceptions in Art 1734 must be proven whether the presumption of negligence applies. Common carriers are bound to observe extraordinary diligence in the vigilance over the goods transported by them. They are presumed to have been at fault or to have acted negligently if the goods are lost, destroyed or deteriorated. To overcome the presumption of negligence in case of loss, destruction or deterioration of the goods, the common carrier must prove that it exercised extraordinary diligence. There are, however, exceptions to this rule. Article 1734 of the Civil Code enumerates the instance when the presumption of negligence does not attach. (Delsan v. Trans. American Home Insurance, August 15, 2006)

a. Caso Fortuito / Force Majeure

Requisites:a. Must be the proximate and only cause of the loss;

b. Event independent of human will;

c. Occurrence makes it impossible for debtor to fulfill the obligation in a normal manner;

d. Obligor must be free of participation in, or aggravation of, the injury to the debtor; and

e. Impossible to foresee or impossible to avoid.

Fire is not considered a natural disaster or calamity as it arises almost invariably from some act of man or by human means unless caused by lightning or by natural disaster or calamity. It may even be caused by the actual fault or privity of the common carrier. (Eastern Shipping Lines Inc. vs. IAC, 150 SCRA 469, [1987]) Mechanical defects are not force majeure if the same was discoverable by regular and adequate inspections. (Aquino T. & Hernando, Notes and Cases on the Law on Transportation and Public Utilities, , R.P. 2004 ed. p.120-122)B. Act of God

Requisites:

1. The common carrier must have exercised extraordinary diligence before, during and after the time of the accident;

2. The event must be unforeseen or even if it can be foreseen, it cannot be avoided;

3. There must have been no undue delay on the part of the common carrier;

4. The proximate cause must not be committed by the common carrier.

Fortuitous event must be established to be the proximate cause of the loss. (Asia Lighterage and Shipping, Inc. v. CA, et al., 409 SCRA, [2003])

Exemption to Liability From Natural Disasters or Calamities:1. The natural disaster must have been the proximate cause of the loss.

2. It must have been the cause of the loss.

3. The common carrier must have exercised due diligence to prevent or minimize the damage or loss before, during and after the natural disaster.

4. The common carrier has not negligently incurred delay in transporting the goods.

C. Acts of Public Enemy In War

Requisites:1. The act of the public enemy must have been the proximate and only cause of the loss; and

2. The common carrier must have exercised due diligence to prevent or minimize the loss before, during or after the act causing the loss, deterioration or destruction of the goods (Art. 1739, Civil Code)E.Order or Act of Public Authority The common carrier is not ipso facto relieved from liability due to the loss, destruction or deterioration of goods caused by public authority.

Requisites:

The common carrier must prove that the public authority has the power to issue the order for the seizure or destruction of the goods.

The common carrier must exercise extraordinary diligence to prevent or minimize the loss, destruction or deterioration of he goods at the time of the accident.

Said public authority must have the power to issue the order (Article 1743, Civil Code). Consequently, where the officer acts without legal process, the common carrier will be held liable. (Ganzon v. CA 161, SCRA 646 [1988])

D. DURATION OF RESPONSIBILITY OR LIABILITY OF COMMON CARRIERS

A. In Case of GoodsSTART: From the time that the goods are delivered to the common carrier. (Article 1736, Civil Code. Cia Maritima vs. Insurance Co. of America)

TERMINATION: When the goods are delivered, actively or constructively, by the carrier to the consignee/person who has the right to receive them, or the consignee/person who has the right to receive them has been informed of the arrival of the goods and the consignee had reasonable time to remove such. (Article 1736 and 1738, Civil Code)

The liability remains in full force and effect even when they are temporarily unloaded or stored in transit unless the shipper or owner made use of the right of stoppage in transitu. (Article 1737, Civil Code)

When Right of Stoppage in Transitu is Exercised:

It is the right of the unpaid seller who has parted with his goods to stop its delivery while in transit when the buyer of the goods is or turns insolvent. (Article 1530, Civil Code)

The common carrier who holds the goods becomes the warehouseman or ordinary bailee and the contract is terminated when such right is exercised.

Requisites:1. Unpaid seller (Article 1525, Civil Code);

2. Goods must be in transit (Article 1531, Civil Code);

3. The seller must either actually take possession of the goods sold or give notice of his claim to the carrier or other person in possession (Article 1532 [1], Civil Code);

4. The seller must surrender the negotiable document of title, if any, issued by the carrier or bailee (Article 1532[2], Civil Code);

5. The seller must bear the expenses of delivery of the goods after the exercise of the right (Article 1532[2], Civil Code); and

6. The buyer is in a state of insolvency or becomes insolvent.

B. In Case of PassengersSTART: The carrier is bound to exercise utmost diligence with respect to passengers the moment the person who purchases the ticket (or a token) from the carrier presents himself at the proper place and in a proper manner to be transported. Such person must have bona fide intention to use the facilities of the carrier, possess sufficient fare with which to pay for his passage, and present himself to the carrier for the transportation in the manner provided. (Vda. De Nueca v. Manila Railroad Company, CA, G.R. No. 31731, January 30, 1968)

It is the duty of carriers of passengers to stop their conveyances for a reasonable length of time in order to afford passengers an opportunity to board and enter, and they are liable for injuries suffered by boarding passengers resulting from the sudden starting up or jerking of their conveyances (Dangwa Transportation Co., Inc. vs. CA, 202 SCRA [1991])

TERMINATION: Until the passenger has, after reaching his destination, safely alighted from the carriers conveyance or had a reasonable opportunity to leave the carriers premises. (La Mallorca v. CA, 17 SCRA 739 [1966])

A person by stepping and standing on the platform of a bus, is already considered a passenger and is entitled to all rights and protection pertaining to such conventional relation (I.d.).

E. Rules on Passengers Baggage1. Baggage in the custody of the passengers or their employee:

That baggage, while in transit will be considered as necessary deposits. The common carrier shall be responsible for the baggage as depositaries, provided that notice was given to them or its employees and the passengers took the necessary precautions which the carrier has advised them relative to the care and vigilance of their baggage.

2. Baggage not in personal custody, but in that of a Carrier

Carrier who has in its custody the baggage of a passenger to be carried like any other goods is required to observe extraordinary diligence. In case of loss or damage, the carrier is presumed negligent. As to the other baggage, the rules in Article 1998 and 2000 to 2003 of the Civil Code concerning the responsibility of hotel-keepers shall be applicable. (Art.1733-1735, Civil Code)Bill of Lading

The written acknowledgment of the receipt of goods, and the agreement to transport them to a specific place to a person named or to his order. It is not indispensable for the creation of a contract of carriage. (Compania Maritima v. Insurance Co. of North America 12 SCRA 213 [1964])Two-fold Character of a Bill of Lading:

1. It is receipt of the goods to be transported; and

2. It constitutes a contract of carriage of the goods.

Functions:1. Best evidence of the existence of the contract of carriage of cargo (Art. 353 Code of Commerce);2. Commercial document whereby, if negotiable, ownership may be transferred by negotiation; and

3. Receipt of cargo.Limitations as to the Carriers Liability:

A stipulation in the Bill of Lading limiting the liability of the carrier to an agreed valuation unless the shipper declares a higher value and pays a higher rate of freight is valid.

However, the carrier cannot limit its liability for injury to, or loss of, goods shipped where such injury or loss was caused by its own negligence.

The surrender of the original bill of lading is not a condition precedent for a common carrier to be discharged of its contractual obligation. If surrender of the original bill of lading is not possible, acknowledgment of the delivery by signing the delivery receipt suffices. (RP v. Lorenzo Shipping, February 7, 2005)Kinds of Bill of Lading:1. On Board - issued when the goods have been actually placed aboard the ship with very reasonable expectation that the shipment is as good as on its way.

2. Received - one in which it is stated that the goods have been received for shipment with or without specifying the vessel by which the goods are to be shipped.

3. Negotiable - one in which it is stated that the goods referred to therein will be delivered to the bearer or to the order of any person named therein. 4. Non-Negotiable - One in which it is stated that the goods referred to therein will be delivered to a specified person.

5. Clean One which does not indicate any defect in the goods.

6. Foul One which contains a notation thereon indicating that the goods covered by it are in bad condition. 7. Spent One which covers goods that already have been delivered by the carrier without a surrender of a signed copy of the bill.8. Through One issued by the carrier who is obliged to use the facilities of other carriers as well as his own facilities for the purpose of transporting the goods from the city of the seller to the city of the buyer, which bill of lading is honored by the second and other interested carriers who do not issue their own bills.9. Custody One wherein the goods are already received by the carrier but the vessel indicated therein has not yet arrived in the port.

10. Port One which is issued by the carrier to whom the goods have been delivered, and the vessel indicated in the bill of lading by which the goods are to be shipped is already in the port where the goods are held for shipment.On-Board Bill of Lading v. Received for Shipment Bill of Lading:

An On Board Bill of Lading is one in which it is stated that the goods have been received on board the vessel which is to carry the goods. An on board bill of lading is issued when the goods have been actually placed aboard the ship with every reasonable expectation that the shipment is as good as on its way. It is, therefore, understandable that a party to a maritime contract would require an on board bill of lading because of its apparent certainty of shipping as well as the seaworthiness of the vessel which is to carry the goods. (Magellan Mfg.,etc. v. Court of Appeals, 201 SCRA 116-117[1991])

A Received for Shipment Bill of Lading is one which it is stated that the goods have been received for shipment without specifying the vessel by which the goods are to be shipped. Received for shipment bills of lading are issued wherever conditions are not normal and there is insufficiency of shipping space. (Magellan Mfg., etc. v. Court of Appeals,201 SCRA 116)

OBLIGATIONS OF THE CARRIERA. Duty to Accept the Goods

General Rule: A common carrier cannot ordinarily refuse to carry a particular class of goods.

Exception: For some sufficient reason the discrimination against the traffic in such goods is reasonable and necessary. (Fisher vs. Yangco Steamship Co. 31 Phil 1 [1915]).

Instances when the carrier may validly refuse to accept the goods:

1. Goods sought to be transported are dangerous objects, or substances including dynamite and other explosives;

2. Goods are unfit for transportation;

3. Acceptance would result in overloading;

4. Contrabands or illegal goods;

5. Goods are injurious to health;

6. Goods will be exposed to untoward danger like flood, capture by enemies and the like;

7. Goods like livestock will be exposed to disease;

8. Strike;

9. Failure to tender goods on time. In case of carriage by railway, the carrier is exempted from liability if carriage is insisted upon by the shipper, provided its objections are stated in the bill of lading.

However, when a common carrier accepts cargo for shipment for valuable consideration, it takes the risk of delivering it in good condition as when it was loaded. (PAL vs. CA, 226 SCRA 423 )B. Duty to deliver the goods

Not only to transport the goods safely but to deliver the same to the person indicated in the bill of lading. The goods should be delivered to the consignee or any other person to whom the bill of lading was validly transferred or negotiated.

TIME OF DELIVERY

Stipulated in Contract/Bill of LadingNo stipulation

Carrier is bound to fulfill the contract and is liable for any delay; no matter from what cause it may have arisen.

1. Within a reasonable time.

2. Carrier is bound to forward them in the 1st shipment of the same or similar goods which he may make to the point of delivery. (Art. 358 Code of Commerce)

Effects of delay:1. Merely suspends and generally does not terminate the contract of carriage.

2. Carrier remains duty bound to exercise extraordinary diligence.

3. Natural disaster shall not free the carrier from responsibility (Art.1740, Civil Code)4. If delay is without just cause, the contract limiting the common carriers liability cannot be availed of in case of loss or deterioration of the goods (Art.1747, Civil Code)

C.Duty to exercise extraordinary diligence Inquiry may be made as to the nature of passengers baggage, but beyond this constitutional boundaries are already in danger of being transgressed. (Nocum vs. Laguna Tayabas Bus Co., 30 SCRA 68)[this doctrine is not applicable to aircrafts because of Section 8 of Anti-Hijacking Law (RA 6235)]RIGHT OF CONSIGNEE TO ABANDON GOODSInstances:1. Partial non-delivery, where the goods are useless without the others (Art. 363, Code of Commerce);2. Goods are rendered useless for sale or consumption for the purposes for which they are properly destined (Art. 365, Code of Commerce); and

3. In case of delay through the fault of the carrier (Art. 371, Code of Commerce).NOTICE OF DAMAGERequisites for Applicability:

1. Domestic/inter-island/coastwise transportation

2. Land/water/air transportation

3. Carriage of goods

4. Goods shipped are damaged (Art. 366, Code of Commerce)Rules:a. Patent damage: shipper must file a claim against the carrier immediately upon delivery (it may be oral or written)

b. Latent damage: shipper should file a claim against the carrier within 24 hours from delivery.

These rules do not apply to misdelivery of goods. (Roldan vs. Lim Ponzo) The filing of notice of claim is a condition precedent for recovery.

Purpose of Notice: To inform the carrier that the shipment has been damaged, and it is charged with liability therefore, and to give it an opportunity to make an investigation and fix responsibility while the matter is fresh. Prescriptive Period Not provided by Article 366. Thus, in such absence, Civil Code rules on prescription apply.

If despite the notice of claim, the carrier refuses to pay, action must be filed in court.

1. If no bill of lading was issued: within 6 years

2. If bill of lading was issued: within 10 years.COMBINED CARRIER AGREEMENT General Rule: In case of a contract of transportation of several legs, each carrier is responsible for its particular leg in the contract. (Art. 373, Code of Commerce)

Exception: A combined carrier agreement where a carrier makes itself liable assuming the obligations and acquiring as well the rights and causes of action of those which preceded it.

ARTICLE 366 (COC)SECTION 3(6) (COGSA)

Applicability

1. Domestic/inter-island/coastwise transportation.

2. Land, water, air transportation.

3. Carriage of goods.

4. Maritime transportation.1. International/overseas/foreign (from foreign country to Philippines).

subject to the rule on Paramount Clause2. Water/maritime transportation

3. Carriage of goods

Notice of damage

1. Filing of notice of claim for the damages is a condition precedent

2. 24-hour period for claiming latent damage.1. Filing of a notice of claim for the damages is not a condition precedent

2. 3-day period for claiming latent damage.

Prescriptive period

None provided; Civil Code applies.One year from the date of delivery (delivered but damaged goods), or date when the vessel left port or from the date of delivery to the arrastre (non-delivery or loss).

PAGE 1TRANSPORTATION LAW: Lawrence Jeffrey Delfin, Flerida Emma Manglicmot, Mark Joseph Mupas,

Melanie Pascua, Gilbert Ricaforte, Renato Segubiense Jr., Katleen Grace Serrano, Mary Jane Timbang