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A. WHAT IS A COMMON CARRIER?- Persons, corporations, firms or associations engaged in the business ofcarrying or transporting passengers or goods or both, by land, water, or air,for compensation, offering their services to the public. (Art. 1732, CivilCode).

- One that holds itself out as ready to engage in the transportation ofgoods for hire as a public employment and not as a casual occupation.

(De Guzman vs. Court of Appeals, No. L-47822, December 22, !88"-

CARRIAGE OF GOODS CARRIAGE OF PASSENGERS

Parties

1. Common carrier

2. Shipper3. Consignee

1. Common carrier

2. Passenger

Cause of liability

Delay in delivery, loss, destruction,or deterioration of the goods

Death or injury to the passengers

Duration of liability

From the time the goods areunconditionally placed in thepossession of, and received y thecarrier for transportation until thesame are delivered actually orconstructively y the carrier to theconsignee or to the person !hohas the right to receive them. "#rt.1$3%&'t remains in full force and e(ect

even !hen they are temporarilyunloaded or stored in transit unlessthe shipper or o!ner has made useof the right of stoppage in transitu.

"#rt. 1$3$&'t continues to e operative even

during the time the goods arestored in a !arehouse of thecarrier at the place of destinationuntil the consignee has eeadvised of the arrival of the goodsand has had reasonaleopportunity thereafter to removethem or other!ise dispose ofthem. "#rt. 1$3)&Delivery of goods to the custom

authorities is not delivery to theconsignee. "*u Do v. +inamira, 11Phil 12&

-he duty of a common carrier toprovide safety to its passengers sooligates it not only during thecourse of the trip, ut for so longas the passengers are !ithin itspremises and !here they ought toe in pursuance to the contract ofcarriage. "*-# v. /avidad, 023ll persons !ho remain on the

premises !ithin a reasonale timeafter leaving the conveyance areto e deemed passengers, and!hat is a reasonale time or areasonale delay !ithin this rule is

to e determined from all thecircumstances, and includes areasonale time to see after hisaggage and prepare for hisdeparture. "*a allorca v. C#, 1$SC# $3 4 #ioti5 ShippingCorporation v. C#, 1$ SC# 6&'t is the duty of common carriers

of passengers to stop theirconveyances a reasonale lengthof time in order to a(ordpassengers an opportunity to

enter, and they are liale forinjuries su(ered from the suddenstarting up or jer7ing of theirconveyances !hile doing so. -heduty !hich the carrier of passengers o!es to its patronse8tends to persons oarding thecars as !ell as to those alighting

TRANSPORTATION LAW: Lawrence Jeffrey Delfn! "ler#a E$$a Man%lc$&'! Mar( J&)e*+ M,*a)!Melane Pa)c,a! -ler' Rcaf&r'e! Rena'& Se%,en)e Jr.! /a'leen -race Serran&! Mary Jane T$an%

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therefrom "Dang!a -rans Co., 'nc.vs. C# 22 SC# 6$9&.

Presumption of negligence

#rt.1$36 Civil Codeeason: #s to !hen and ho! goods!ere damaged in transit is a

matter peculiarly !ithin the7no!ledge of the carrier and itsemployees. "irasol v. Dollar, 63P;'* 129&

ere proof of delivery of goodsto a carrier in good order and thesuse8ercise of e8traordinarydiligence "#rt. 1$6%&

2. Caso fortuito


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Vali stipulations

1. eduction of degree of diligenceto ordinary diligence, provided ite:

a& 'n !riting, signed y theshipper or o!ner4

& Supported y a valualeconsideration other than theservice rendered y thecarriers4 and

c& easonale, just and notcontrary to pulic policy."#rt. 1$99&

2. Fi8ed amount of liaility: #contract ?8ing the sum to erecovered y the o!ner or shipperfor the loss, destruction ordeterioration of the goods, if it is

reasonale and just under thecircumstances and has een fairlyand freely agreed upon. "#rt. 1$6&3. *imited liaility for delay: #nagreement limiting the commoncarrier@s liaility for delay onaccount of stri7es or riots "#rt.1$9)&9. Stipulation limiting liaility tothe value of the goods appearingin the ill of lading, unless theshipper or o!ner declares a

greater value. "#rt. 1$9&

-he diligence re


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diminished4$. -hat the carrier is notresponsile for the loss,destruction or deterioration of thegoods on account of the defectivecondition of the car, vehicle, shipor other e


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A person or entity may be a common carrier even if he has no fi(ed

publicly &nown route, maintains no terminals, and issues no tic&ets.

)nderta&es to carry for all people indifferently and thus is liable forrefusal without sufficient reason (Last#moso vs. Dol#ente, $ %C&A ,'!)"*

!annot lawfully decline to accept a particular class of goods forcarriage to the pre*udice of the traffic in these goods+

o monopoly is favored (+atanas rans. vs. rlanes, /2 01#l. 4//"+

Provides public convenience.

C. TESTS WHETHER A PART1 IS A COMMON CARRIER O" -OODS:

1. e must be engaged in the carrying of goods for others as a publicemployment, and must hold himself out as ready to engage in thetransportation of goods or persons generally as a business and not as acasual occupation.2. e must underta&e to carry goods of the &ind to which his business isconfined+3. e must underta&e to carry by the method by which his business isconducted and over his established roads+ and'. %he transportation must be for hire.

E. DISTINCTIONS 0ETWEEN COMMON CARRIER AND PRI2ATECARRIER

C&$$&n Carrer Pr3a'e Carrer

As to passengers

olds himself out for all peopleindiscriminately.

!ontracts with particular individualsor groups only.

As to required diligence

e/uires e(traordinary diligence. e/uires only ordinary diligence.

As to state regulation

0ub*ect to regulation. ot sub*ect to regulation.

As to stipulation on limiting liabilityParties may not agree on limiting thecarriers liability e(cept when providedby law.

Parties may agree on limiting thecarriers liability, prov#e notcontrary to law, morals or goodcustoms.

Presumption as to ault and negligence

Presumption of fault or negligenceapplies.

o fault or negligence is presumed.

As to la!s applicable on damages

aw on common carriers. aw on obligations and contracts.

0. E4TRAORDINAR1 DILI-ENCE

RE56IREMENT O" E4TRAORDINAR1 DILI-ENCE!ommon !arriers, from the nature of their business and for reasons of



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public policy, are bound to observe e(traordinary diligence on the vigilanceover goods and for the safety of the passengers transported by themaccording to all the circumstances of each case. (Art. 7$$, C#v#l Coe"

C&3era%e1. 4igilance over goods (Arts. 7$4-7/4"2. 0afety of passengers (Arts. 7//-7$"

Pa))en%er 7A person who has entered into a contract of carriage, e(press orimplied, with the carrier. %hey are entitled to e(traordinary diligence from thecommon carrier.

Per)&n) N&' C&n)#ere# A) Pa))en%er)1. One who has not yet boarded any part of a vehicle regardless of

whether or not he has purchased a tic&et+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+'. One who attempts to board a moving vehicle, although he has a

tic&et, unless the attempt be with the &nowledge and consent of thecarrier+

. One who boarded a wrong vehicle, has been properly informedof such fact, and on alighting, is in*ured by the carrier+ or

5. One who rides any part of the vehicle which is unsuitable ordangerous or which he &nows is not designed or intended forpassengers.

R6LES ON PRES6MPTION O" NE-LI-ENCE:A. "n t#e Carriage o $oods%

8 $n case of loss, destruction and deterioration of goods, common carriersare presumed to be at fault or have acted negligently, unless theyprove that they e(ercise e(traordinary diligence.

8 $n the transport of goods, mere proof of delivery of goods in good orderto a carrier and the subse/uent arrival of the same goods at the placeof destination in bad order ma&es for a prima facie case against thecarrier.

&. "n t#e Carriage o Passengers%8 $n case of death or in*ury to passengers, common carriers are presumed

to be at fault or have acted negligently, unless they prove that they

e(ercise e(traordinary diligence. .(Art. 7//,NCC"8 %he court need not ma&e an e(press finding of fault or negligence of

common carriers. %he law imposes upon common carriers strictliability, as long as it is shown that there e(ists a relationship betweenthe passenger and the common carrier and that in*ury or death too&place during the e(istence of the contract.

8 %he common carrier is not an absolute insurer against all possible ris&sof transportation or travel. (0#lap#l vs. CA et al, 83 %C&A /4"

'octrine o Proimate Cause6 is O% applicable to contract of carriage

%he in*ured passenger or owner of goods need not prove causation to

establish his case. %he presumption arises upon the happening of theaccident. (Calalas v. CA, $8$ %C&A, '2332)"

DE"ENSES O" COMMON CARRIERS$eneral ule%!ommon carriers are responsible for the loss, destruction ordeterioration of the goods.*ceptions%%he same is due to any of the following causes only7


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a. 8lood, storm, earth/ua&e, 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. %he character of the goods or defects in the pac&ing or in the containers+e. Order or act of competent authority. (Art.7$4, C#v#l Coe"

%he above enumeration is e9cl,)3e. $f not one of those enumerated

is present, the carrier is liable. (+el#an C1arter#n an %1#pp#n, N..

v. 01#l. 5#rst 6nsurance Co.,6nc., $8$ %C&A, 2332" %he e(ceptions in Art 13' must be proven whether the presumption of

negligence applies. !ommon carriers are bound to observee(traordinary diligence in the vigilance over the goods transported bythem. %hey are presumed to have been at fault or to have actednegligently if the goods are lost, destroyed or deteriorated. %oovercome the presumption of negligence in case of loss, destruction ordeterioration of the goods, the common carrier must prove that ite(ercised e(traordinary diligence. %here are, however, e(ceptions tothis rule. Article 13' of the !ivil !ode enumerates the instance whenthe presumption of negligence does not attach. (Delsan v. rans.

Amer#can ome 6nsurance, Auust /, 233"

A. Ca)& "&r','& "&rce Ma;e,reequisites%a. 9ust be the pro(imate and only cause of the loss+b. :vent independent of human will+c. Occurrence ma&es it impossible for debtor to fulfill the obligation in a

normal manner+d. Obligor must be free of participation in, or aggravation of, the in*ury to

the debtor+ ande. $mpossible to foresee or impossible to avoid.

o 8ire is not considered a natural disaster or calamity as it arises

almost invariably from some act of man or by human means unlesscaused by lightning or by natural disaster or calamity. $t may evenbe caused by the actual fault or privity of the common carrier.(astern %1#pp#n L#nes 6nc. vs. 6AC, /3 %C&A 4!, '!87)"

o 9echanical defects are not force ma*eure if the same was

discoverable by regular and ade/uate inspections. (A9u#no . :ernano, Notes an Cases on t1e La; on ransportat#on an0ubl#c


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3. %he common carrier must have e(ercised due diligence to prevent orminimi;e the damage or loss before, during and after the naturaldisaster.

'. %he common carrier has not negligently incurred delay in transportingthe goods.

!. Acts of Public :nemy $n


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17+3, Civil Code).!onse/uently, where the officer acts without legalprocess, the common carrier will be held liable. (Ganzon v. CA ,%C&A 4 '!88)"

D. D6RATION O" RESPONSI0ILIT1 OR LIA0ILIT1 O" COMMON

CARRIERS

A. IN CASE O" -OODSSTART: 8rom the time that the goods are delivered to the common carrier."Article 173, Civil Code. Cia -aritima vs. "nsurance Co. o America#

TERMINATION: an#la &a#lroa Compan?, CA, G.&. No.$7$, @anuar? $3, !8#

$t is the duty of carriers of passengers to stop their conveyances for areasonable length of time in order to afford passengers an opportunity toboard and enter, and they are liable for in*uries suffered by boardingpassengers resulting from the sudden starting up or *er&ing of theirconveyances (Dan;a ransportat#on Co., 6nc. vs. CA, 232 %C&A '!!)"

TERMINATION: )ntil the passenger has, after reaching his destination,


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safely alighted from the carriers conveyance or had a reasonable opportunityto leave the carriers premises. "La >allorca v. CA, 7 %C&A 7$! '!)#

A person by stepping and standing on the platform of a bus, is alreadyconsidered a passenger and is entitled to all rights and protection pertainingto such conventional relation (6..".

E. R6LES ON PASSEN-ER


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its way.2. eceived- 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 tobe shipped.

3. 0egotiable - one in which it is stated that the goods referred to therein willbe delivered to the bearer or to the order of any person named therein.

'. 0on0egotiable - One in which it is stated that the goods referred totherein will be delivered to a specified person.

. Clean One which does not indicate any defect in the goods.5. oul6 One which contains a notation thereon indicating that the goods

covered by it are in bad condition.. pent6 One which covers goods that already have been delivered by the

carrier without a surrender of a signed copy of the bill.>. 4#roug#6 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 transportingthe goods from the city of the seller to the city of the buyer, which bill oflading is honored by the second and other interested carriers who do notissue their own bills.

@. Custody6 One wherein the goods are already received by the carrier but

the vessel indicated therein has not yet arrived in the port.1B.Port6 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 goodsare to be shipped is already in the port where the goods are held forshipment.

On70&ar# 0ll &f La#n% 3. Rece3e# f&r S+*$en' 0ll &f La#n%: An COn 0&ar# 0ll &f La#n%D is one in which it is stated that the goodshave been received on board the vessel which is to carry the goods. An onboard bill of lading is issued when the goods have been actually placedaboard the ship with every reasonable e(pectation that the shipment is as

good as on its way. $t is, therefore, understandable that a party to a maritimecontract would re/uire an on board bill of lading because of its apparentcertainty of shipping as well as the seaworthiness of the vessel which is tocarry the goods. (>aellan >f.,etc. v. Court of Appeals, 23 %C&A -7'!!)"

A CRece3e# f&r S+*$en' 0ll &f La#n%D is one which it is stated thatthe goods have been received for shipment without specifying the vessel bywhich the goods are to be shipped. eceived for shipment bills of lading areissued wherever conditions are not normal and there is insufficiency ofshipping space. (>aellan >f., etc. v. Court of Appeals,23 %C&A "

O0LI-ATIONS O" THE CARRIERA. D,'y '& Acce*' '+e -&)

$eneral ule%A common carrier cannot ordinarily refuse to carry aparticular class of goods.*ception% 8or some sufficient reason the discrimination against thetraffic in such goods is reasonable and necessary. (5#s1er vs. Banco%teams1#p Co. $ 01#l '!/)".

In)'ance) w+en '+e carrer $ay 3al#ly ref,)e '& acce*' '+e %&):1. ?oods sought to be transported are dangerous ob*ects, or substances

including dynamite and other e(plosives+2. ?oods are unfit for transportation+3. Acceptance would result in overloading+'. !ontrabands or illegal goods+. ?oods are in*urious to health+5. ?oods will be e(posed to untoward danger li&e flood, capture by

enemies and the li&e+. ?oods li&e livestoc& will be e(posed to disease+


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>. 0tri&e+@. 8ailure to tender goods on time.

o $n case of carriage by railway, the carrier is e(empted from liability ifcarriage is insisted upon by the shipper, provided its ob*ections arestated in the bill of lading.

o owever, when a common carrier accepts cargo for shipment for

valuable consideration, it ta&es the ris& of delivering it in good condition

as when it was loaded. (0AL vs. CA, 22 %C&A 42$ "&. 'uty to deliver t#e goods

ot only to transport the goods safely but to deliver the same to theperson indicated in the bill of lading. %he goods should be delivered to theconsignee or any other person to whom the bill of lading was validlytransferred or negotiated.

TIME O" DELI2ER1

S'*,la'e# n C&n'rac'0ll&f La#n%

N& )'*,la'&n

!arrier is bound to fulfill the

contract and is liable for anydelay+ no matter from whatcause it may have arisen.

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RI-HT O" CONSI-NEE TO A0ANDON -OODSIn)'ance):1. Partial non-delivery, where the goods are useless without the others (Art.

$$, Coe of Commerce"*2. ?oods are rendered useless for sale or consumption for the purposes for

which they are properly destined (Art. $/, Coe of Commerce"*and3. $n case of delay through the fault of the carrier (Art. $7, Coe of

Commerce".

NOTICE O" DAMA-ERe=,)'e) f&r A**lcal'y:1. Fomestic=inter-island=coastwise transportation2. and=water=air transportation3. !arriage of goods4. ?oods shipped are damaged(Art. $, Coe of Commerce"

R,le):a. Patent damage7 shipper must file a claim against the carrier immediately

upon delivery "it may be oral or written#b. atent damage7 shipper should file a claim against the carrier within 2'

hours from delivery.o %hese rules do not apply to misdelivery of goods. (&olan vs. L#m

0onzo"o %he filing of notice of claim is a condition precedent for recovery.

P,r*&)e &f N&'ce: %o inform the carrier that the shipment has beendamaged, and it is charged with liability therefore, and to give it an

opportunity to ma&e an investigation and fi( responsibility while the matter isfresh.Pre)cr*'3e Per ot provided by Article 355. %hus, in such absence, !ivil !ode rules on

prescription apply. $f despite the notice of claim, the carrier refuses to pay, action must be

filed in court.1. $f no bill of lading was issued7 within > year)2. $f bill of lading was issued7 within @ year).

COM0INED CARRIER A-REEMENT

$eneral ule%$n case of a contract of transportation of several legs, eachcarrier is responsible for its particular leg in the contract. (Art. $7$, Coe ofCommerce"

*ception%A combined carrier agreement where a carrier ma&es itself liableassuming the obligations and ac/uiring as well the rights and causes of actionof those which preceded it.


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ARTICLE >> BCOC SECTION B> BCO-SA

Applicability

1. Fomestic=inter-island=coastwisetransportation.

2. and, water, air transportation.3. !arriage of goods.

'. 9aritime transportation.

1. $nternational=overseas=f oreign "from foreign country toPhilippines#. sub*ect to the rule on

0aramount Clause

2.

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