TRANSPORTATION LAW

A. COMMON CARRIERS 1. 2. Definition, Art. 1732, NCC Test of common carrier concept First Philippine Industrial Corp. vs CA, 300 SCRA 661 National Steel vs. CA, 283 SCRA 45, 1971 Caltex Phils vs. Sulpicio Lines, 315 SCRA 709, 1999 (pipeline operator) Coastwise Lighterage Corp vs. CA, 245 SCRA 797, 1995 (demise charter) Virgines Calvo vs. UCPB General Insurance Co., GR No. 148496, March 19, 2002 (customs broker and warehouseman can be a common carrier) Philippine American Gen. Ins. Co. vs. PKS Shipping Co., GR No. 149038, Apr. 9, 2003 Asia Lighterage and Shipping, Inc. vs. CA, et al., GR No. 147246, Aug. 19, 2003 (barge) Sps. Cruz vs. Sun Holidays, Inc., G.R. No. 186312, June 29, 2010 (beach operator) Fabre Jr. vs. CA, 259 SCRA 426, 1996 De Guzman vs. CA, 168 SCRA 612, 1998 Distinction between Common Carriers and Private Carriers As to (1) Passengers, (2) diligence, (3) regulation, (4) stipulation, (5) presumption and (6) law applicable on damages. Planters Product, Inc. vs. CA, GR No. 105090, Sept. 15, 1993 (character of business and single transaction) 3. Diligence required of Common Carriers, Art. 1735 and 1756, NCC Belgian Overseas Chartering and Shipping, N.V. vs. Phil. First Ins. Co., G.R. no. 143133, June 5, 2002 (Mere proof of bad delivery is prima facie case) Calalas vs. CA, GR No. 122039, May 31, 2000 (proximate cause doctrine not applicable) 4. Liabilities of Common Carrier a. Culpa contractual b. Culpa aquiliana c. Culpa criminal B. VIGILANCE OVER GOODS Common carriers are responsible for the loss, destruction or deterioration of the goods.

1. Exempting causes, Art. 1734, NCC a. Absence of Negligence required b. Absence of Delay also required, Art. 1740, NCC c. Due diligence during and after flood, storm or other natural disaster OR act of public enemy, Art. 1739, NCC d. Fortuitous events: requisites i. De Guzman vs. CA, 168 SCRA 612, 1998 (robbery with irresistible threat, exempts carrier) ii. Pilapil vs. CA, (failure to install grills in bus, exempts carrier) iii. Fortune Express, Inc. vs. CA, GR No. 119756, March 18, 1999 (bus held by armed men, does not exempt carrier, as it is not a fortuitous event defense) iv. IN SHIPPING: Phil. American Gen. Ins. Co. vs. PKS Shipping Co., GR No. 149038. April 9, 2003 v. IN SHIPPING: Asia Lighterage and Shipping, Inc., vs. CA, et. al., GR No. 147246, Aug. 19, 2003 2. Contributory Negligence by shipper or owner, damage reduced 3. Duration of Liability a. From time of delivery to common carrier, Art. 1736, NCC b. Actual or constructive delivery, Art. 1736 & 1738, NCC c. Temporary unloading or storage, Arts. 1737 & 1738 4. Stipulation less than extraordinary diligence, Art. 1744, NCC a. Void stipulation, Art. 1745, NCC b. Stipulation that fixes amount recoverable, Art. 1750, NCC c. Stipulating liability limited to value of goods declared, Art. 1749, NCC d. Carriage of Goods by Sea Act stipulations (valid even if not written in bill of lading) 5. Liability for baggage of passengers a. For baggage that is checked-in, Art. 1734, NCC b. For baggage in possession of passengers (not checked-in), Art. C. SAFETY OF PASSENGERS 1. Void Stipluations, Art. 1755, NCC [no absolute exemption nor lessening of extraordinary diligence] 2. Duration of Liability a. Waiting for carrier to be boarded or actual boarding Dangwa vs. CA, 1991 b. Arrival at destination 3. Liability for actions of others a. by Employees, Art. 1759, NCC b. by other passengers and by strangers, Art. 1763, NCC

4. Extent of liability for damages, Art. 1764, NCC a. Actual or compensatory damages De Caliston vs. CA, 122 SCRA 958 b. Moral damages Generally not recoverable in culpa contractual except in death, fraud and in the presence of social humiliation c. Nominal damages, Arts. 2221 & 2222 Alitalia vs IAC, 192 SCRA 9

D.

BILL OF LADING (usually for maritime commerce) Compania Maritima vs. Insurance Co. of North America, 12 SCRA 213 1. Three-fold character 2. Types of Bill of Lading a. On Board Bill of Lading b. Received Shipment Bill of Lading i. Magellan Manufacturing Corp. vs. CA, 201 SCRA 102, 1991 3. Delivery of goods a. Period for delivery, Art. 358 and 370 Code of Commerce b. Delivery without surrender of bill of lading RP vs. Lorenzo Shipping, GR No. 153653, February 7, 2005 [450 SCRA 551] c. Refusal of consignee to take delivery a. Keng Hua Paper Products vs. CA, 186 SCRA 257, 1998 consignee and shipper who accepts a bill of lading even without signing are bound by the terms and conditions thereof. 4. Period of filing claims: patent damage and latent damage 5. Period for filing actions: if with bill of lading and if without one, Art. 366 Code of Commerce and Sec. 3(6) of COGSA

E. MARITIME COMMERCE 1. Definition of Maritime Law What is a vessel? 2. Parties involved in Maritime Commerce: (1) shipowners and ship agents, (2) captains and masters of vessels, (officers and crew of the vessel, (4) supercargoes A. Ship owners/ Ship agents duty a. NDC vs. CA, 164 SCRA 593, 1988 B. Charter Parties: ship owner or ship agent and the charterer a. Bareboat/Demise Charterer i. Caltex Phils vs Sulpicio Lines, 315 SCRA 709, 1999 ii. Coastwise Lighterage Corp vs. CA, 245 SCRA 797, 1995 b. Contract of Affreightment can either be -

i. Time Charter ii. Voyage/Trip Charter C. Liability of Captains a. Liability of acts of captain i. Inter-Orient Maritime Enterprises, Inc. vs. NLRC, 235 SCRA 268, 1994 ii. Wildvalley Shipping Co. vs. CA, GR No. 119602, Oct. 6, 2000 b. Exceptions to limited liability D. Officers and Crew of the Vessel a. Desertion i. Singa Ship Management Phils vs. NLRC, 276 SCRA 201, 1997 E. Supercargoes 3. Accidents in Maritime Commerce a. Collision impact of two moving vehicles (Art. 826, 827 and 828, Code of Commerce) i. Doctrine of Inscrutible Fault ii. Rules on Collision (Arts. 826-828 and 830-832, Code of Commerce) iii. Doctrine of Error in Extremis b. Arrivals under Stress or Shipwreck 4. Damages in Maritime Commerce: Average a. General Average, Art. 806, 808, 811, Code of Commerce Phil. Home Assurance Corp. vs. CA, 257 SCRA 468, 1996 b. Formalities of General Average (Art. 813 and 814, Code of Commerce) c. Particular Average (Art. 809, Code of Commerce) 6. Loans on Bottomry and Respondentia: Definitions 7. Procedure and Prescriptive Period for Claims a. Coastwise or within the Philippines i. Claim with carrier as condition precedent ii. Case in court and prescriptive period b. International carriage from foreign port to Philippines (COGSA, ; see B.4.d above) i. Claim with carrier not as condition precedent ii. Case in court and prescriptive period (Sundiang , page 470-471) F. CARRIAGE OF GOODS BY SEA ACT (the conditions of COGSA are made part of the Bill of Lading even if not expressly stated; see B.4.d above) a. Application b. Notice of Loss or Damage c. Period of Prescription d. Limitation of Liability

G. MARINE INSURANCE 1. Coverage: a. Insurance against loss of or damage to b. Marine protection and indemnity insurance (Sec. 99, IC) 2. Parties (and Insurable Interest) in Marine Insurance a. Shipowner i. over the value of the vessel, exceptions Charterer agrees to pay value of vessels loss (Sec. 100, IC) If hypothecated by a bottomry loan and the insurable interest is on the excess of the vessels value over the loan (Sec. 101, IC) ii. over the value of the freightage iii. over the freightage or cargo b. Charterer i. over the vessel ii. over his expected profits or freightage iii. over his cargo or his clients cargo c. creditors in loans on bottomry (Sec. 101. IC) 3. Measures of Indemnity a. Valued Policy b. Open Policy 4. Risk or Losses Covered in Marin Insurance a. Perils of the sea vs. Perils of the ship b. All Risk in marine insurance policy 5. DEVICES in Marine Insurance a. Concealment (Sec. 109-110, IC) b. Representation c. Implied warranties i. Seaworthy (Sec. 113, IC) ii. Not Deviate (Secs. 123, 124.125. IC) iii. No illegal venture iv. Neutrality (Sec. 120, IC)

d. Other Devices (maybe deemed exceptions) i. Barratry clause ii. Inchamaree clause iii. Sue and Labor Clause H. THE WARSAW CONVENTION

1. Applicability 2. Limitation of Liability, Art. 22, Alitalia vs. IAC, 192 SCRA 9 a. Liability to Passengers, exception b. Liability for checked baggage, exception c. Liability for hand-carried baggage 3. Willful misconduct I. PUBLIC SERVICE ACT 1. Definition of Public Utility 2. Necessity for certificate of public convenience a. Cases: i. Luque vs. Villegas, 30 SCRA 408 ii. Raymundo vs. Luneta Motor Co., 58 Phil 982 iii. Loadstar Shipping vs. CA, GR No. 131621, Sept. 28, 1999 b. Requisities essential to grant CPC/CPCN i. Citizenship or 60% owned by citizens 1. Kilusang Mayo Uno vs. Garcia, Jr. 239 SCRA 386 ii. Sufficient financial capability iii. Promote public interest and convenience c. Prior Operator Rule i. Meaning ii. Exceptions iii. Ruinous competition 1. Batangas vs. Orlanes, 52 Phil 455 3. Fixing of rate, Sec. 16.c. of the Public Service Act a. Rate of return just and reasonable b. Exclusion of income tax as expense 1. Republic vs MERALCO, GR. 141314, 2002 4. Unlawful arrangements a. Boundary system b. Kabit system 5. Approval of Sale, Encumbrance or Lease of Property a. Acts requiring prior approval