LAWS ON TRANSPORTATION AND PUBLIC UTILITIES

1. Definition
a. Basis: article 1732 of the CC
b. 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
c. *** one that holds itself out as ready to engage in
the transpo of goods for hire as a public
employment and not as casual occupation
i. no distinction between those offering on
scheduled basis and those offering on
unscheduled basis
2. TESTS for determining WON common carrier
a. Must be engaged in the business of carrying goods
for others as public employment and must hold
himself out as ready to engage in the
transportation of goods as a business and not as a
casual occupation
b. He must undertake to carry goods of the kind to
which his business is confined
c. He must undertake to carry by the method by
which his business is conducted and over his
established roads
d. Transportation must be for hire
3. DOCTRINES
a. no distinction between those offering services for
the general public and those who offer only from a
narrow segment of the general population (de
guzman vs CA)
i. definition of public service under Public
Service Act

b. pipeline operators are common carriers: the law

does not distinguish as to the means of
transportation as long as it is by land, water or air.
It does not provide that it should be by motor
vehicle (First PH Industrial Corp vs CA)
c. bareboat/ demise charter transforms common
carrier to private carrier (so hindi transformed ang
voyage/ time charter)
d. common carrier need no have a fixed and publicly
known route nor a terminal/ issuance of ticket
e. tour package with ferry service is a common carrier
as it is so intertwined with the main business
f. CC presumed negligent when death took place
during existence of contract unless it observed
extraordinary diligence. Doctrine of proximate
cause does not apply.
4. CC vs PC
a. Holds himself out to all vs private only
b. Bound to carry for any reason vs not bound
c. Subject to regulation as public service vs not
subject
d. Extra-O diligence vs good father
e. Cannot stipulate that it is exempt from liability for
negligence of agents
5. When COGSA applies?
a. Suppletorily to CC in carriage from foreign ports to
PH
b. Liability of carrier is $500 per package in absence
of shippers declaration of a higher value in the bill
of lading
c. (per carton/ per coil)
When prescriptive period start?

After delivery OR date when goods should have been

delivered to the arrastre operator. Stipulations reducing
the 1 year prescription is void. Suspending it is valid.
Does it apply in collision cases?
YES. Starts from date when goods should have been
delivered had they been saved.
Is it suspended by demand letter to carrier?
NO. extra judicial demand does not suspend it.
Does it apply to insurer enforcing right of subrogation? YES
Is it applicable to claim against insurer for the insurance
proceeds? NO. claim vs insurer is 10 yrs.
What if damage caused by delay or late delivery? The goods are
not actually damaged. 10 yrs.
6. DEFENSES
a. Flood, strom, quake, lighting, or other natural
disaster/ calamity
b. Acts of public enemy in war
c. Acts or omission of shipper or owner of goods
d. Character of the goods or defects in the packing
e. Order or act of competent public authority
f. Exercise of extra-o diligence
g. Examples:
i. Robbery
ii. Rocks hurled at the bus
7. REQS of FORTUITOUS EVENTS
a. Independent of human will
b. Impossible to foresee or if can be foreseen,
impossible to avoid
c. Occurrence must be such to render it impossible
for the debtor to fulfill his obligation in a normal
manner
d. The debtor must be free from any participation in
or the aggravation of the injury resulting to the
creditor

e. *** must be the proximate cause

8. DURATION
a. GOODS
i. From the time goods are unconditionally
placed in the possession of and received by
the carrier
ii. Until delivered actually and constructively
b. PASSENGERS
i. The moment person present himself at
proper place and manner
ii. Til passenger safely alighted or had a
reasonable opportunity to leave the
carriers premises
9. Liabilities for act of employees
a. Diligence of good father in selection and
supervision does not apply
b. Not liable for employees not in duty
c. Liable for injuries on account of acts of other
passengers if they could have prevented it
10. Can there be stipulation to reduce diligence?
a. YES IN GOODS
i. Must be signed and in writing
ii. For valuable consideration
iii. Reasonable and not contrary to law
b. NO IN PASSENGERS
i. 1757 no reduction is allowed in carriage of
passengers
ii. unless carried gratuitously
11. REGISTERED OWNER RULE
a. Registered owner liable to injured party subject to
his right of recourse against the transferee or
buyer
b. Applies when vehicle is leased. Does not apply
when vehicle was stolen
12. KABIT SYSTEM

a. a person granted a certificate of public

convenience, allows other persons to operate
under his license
b. not outright penalized by law BUT is contrary to
public policy and therefore void under 1409 of CC
c. *** jeepney under kabit system may be levied by
creditors of the registered operator
13. Causes of action
a. Passenger sues carrier (culpa contractual)
b. Passenger sues driver (culpa delictual/aquilana)
c. Passenger sues 3rd party (quasi-delict) employer
subsidiarily liable
d. In case driver and 3rd person negligent, joint and
severally liable
e. Arrester operator and carrier are liable in solidum
to consignee

14. Successive carriers

a. 2nd carrier has a right of action against first carrier
b. issuer-carrier liable for the tortious conduct of
other carriers
MARITIME LAW
15. VESSEL
a. Any interest must be registered with MARINA
b. If unregistered, not binding to 3rd parties
16. LIMITED LIABILITY RULE
a. Hypothecary nature of maritime law operates to
limit the liability of the owner to the value of the
vessel, earned freightage, and proceeds of the
insurance

b. Total destruction of the vessel extinguishes

maritime lien as there is no longer any res to which
it can attach
c. Basis: Art. 587, 590, 837 Code of Commerce
d. APPLIES WHEN:
i. Civil liability to 3rd persons from conduct of
captain
ii. Collisions
iii. Unpaid wages of captain and crew
e. EXCEPTIONS:
i. Death
due to owner or concurring
negligence of owner and captain (LL will not
apply if carrier failed to overcome
presumption of negligence)
ii. Vessel is insured (to the extent of proceeds)
iii. Workmens compensation claim
f. WHO INVOKES?
i. Owner only. Charterer cannot invoke it
17. PROTEST
a. Written statement by master, notarized, stating
that damages has been suffered by the ship.
b. Required when:
i. Arrival under stress
ii. Vessel shipwrecked
iii. Hurricane and captain believes cargo
suffered damages
iv. Maritime collisions
18. COLLISION
a. Doctrine of inscrutable fault fault established but
it cannot be determined who, both shall be
deemed to have been at fault
b. If due to fault of captain/crew, owner liable
c. If due to both vessel, each vessel to suffer own
loss, but solidary liable to cargo owners
d. If due to 3rd vessel, 3rd vessel liable

e. If vessel anchored and runs into another by force

majeur, sorry siya haha
19. 3 ZONES IN COLLISION
a. time up to the moment when risk of collision
begins
b. time between moment when risk of collision begins
up to moment it becomes practical certainty
c. time when collision is certain up to the time of
impact
20. DOCTRINE OF ERROR IN EXTREMIS
a. When a vessel having right of way, suddenly
changes course during the 3rd zone, to avoid
collision due to fault of another, such act is
considered in extrimis and even if wrong cannot
create responsibility on the part of said vessel with
right of way
21. ARRIVAL UNDER STRESS
a. Lack of provisions
b. Founded fear of seizure/ pirates
c. Accident
22. SUPERCARGOES
a. Person who discharges admin duties assigned to
him by ship agent or shippers keeping an account
and record of transaction as required in the
accounting book of the captain

23. GAL
a. This includes all damages and expenses
deliberately caused to save the vessel, cargo or
both from real and known risk.
b. REQS:
i. Common danger

24. PAL

ii. For common safety, part of the vessel or

cargo or both is sacrificed deliberately
iii. Successful saving of cargo
iv. Must be necessary
c. Formalities?
i. Resolution of captain entered in the logbook
stating the reasons, with signatures and the
detail of all goods jettisoned

a. All expenses and damages caused to the vessel or

her cargo which have not inured to the benefit and
common profit of all the persons interested in the
vessel/cargo
25. CHARTER PARTY
a. Contract of affreightment
i. Time charter fixed time
ii. Voyage single voyage
b. Demise/bareboat transfers to him entire
command where charterer is treated as the owner
26. MARITIME LOANS
a. BOTTOMRY - Loan secured by the ship owner or
agent guaranteed by the vessel at destination
b. RESPONDENTIA - Loan secured by the owner of
cargo payable upon safe arrival of cargo at
destination
c. ***usury law inapplicable
27. PRESCRIPTION
a. Coastwise
i. Claim Immediately if damage is apparent
ii. 24 hours claim with carrier if not apparent
iii. 6 years in court if no BoL issued
iv. 10 years if BoL issued
b. International
i. Filing of claim not condition precedent
ii. File Within 1 year from discharge with court

28. SALVAGE
a. There must be marine peril
b. Vessel shipwrecked beyond control of the crew/
abandoned
c. Voluntarily rendered
d. Must be successful in whole or in part
WARSAW CONVENTION
29. WARSAW CONVENTION
a. This applies to international transportation by air
i. The place of departure and destination are
within the territories of 2 contracting
countries regardless of WON there was a
break in the transportation
ii. Place of departure and destination are
within the territory of a single contracting
country IF there is an agreed stopping place
within a territory subject to the sovereignty,
mandate or authority of another power,
even though the power is not a party to the
convention.

PUBLIC SERVICE ACT

30. CONDITIONS TO GRANT CERTIFICATE
a. Must be a citizen of the PH/ corpo 60% owned by
citizens
b. Financial capability
c. Service
will
promote
public
interest
and
convenience
31. Is it property in the hands of the holder thereof?
a. A certificate of public convenience is a mere
license or a privilege and being neither a franchise
nor a contract, it confers no vested or property
right or interest to the holder. HOWEVER, in
its purely private aspect, it has value and may be
considered property that can be levied upon.
32. CPC vs CPCN
a. The former is any authorization to operate public
service issued by the Public Service Commission
for which no franchise, either municipal or
legislative, is required by law. The latter requires a
franchise issued by the legislative department.
33. PRIOR OPERATOR RULE
a. As long as first operator is rendering sufficient and
adequate service, no issuance of a new certificate
to competition
34. GROUNDS FOR REVOCATION
a. Holder violates or contumaciously refuses to
comply with any order of the commission
b. Holder is a mere dummy
c. Holder ceases operations or abandons the service
35. FRANCHISE
a. Authorizations issued directly from Congress in the
form
of
statute
and
those
granted
by
administrative agencies to which such power was
delegated by Congress

36. IS franchise necessary before a public utility can be

allowed to secure a certificate of public convenience?

a. NO if there is no statute requiring the same

b. YES if the law requires such