Professional Documents
Culture Documents
Transportation by Sea
1. Coastwise
1.1. NCC primary
1.2. Code of Commerce suppletory
1.3. Carriage of Goods by Sea Act (COGSA) does not
apply even if the parties expressly provide for it
2. Philippine port to foreign ports law of the country of
destination
3. Foreign ports to Philippine ports
3.1. NCC primary
3.2. Code of Commerce
3.3. COGSA
3.4. Philippine laws still apply even if the collision
actually takes place in foreign waters.
Air Transportation
1. Domestic NCC; Code of Commerce
2. International Warsaw Convention
COMMON CARRIERS
Tests:
1. He must be engaged in the business of carrying goods
for others as a public employment, and must hold
himself out as ready to engage in transportation of
goods for persons generally as a business and not as a
casual occupation;
2. He must undertake to carry goods of a 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 (First Phil.
Industrial vs. CA, 300 SCRA 661)
Characteristics:
PRIVATE CARRIER
Contracts with
particular individuals or
groups only
Only ordinary diligence
is required
Not subject to State
regulation
No presumption of fault
or negligence
Exempting
circumstance is
fortuitous event
Governed by law on
common carriers
2.
Kabit System
A system whereby a person who has been granted a
certificate of public convenience allows other persons
who own motor vehicles to operate under such
license, for a fee or a percentage of such earnings. It
is void under Art. 1409 NCC.
Effects:
1. The thrust of the law in enjoining the kabit
system is to identify the person upon whom
responsibility may be fixed with the end in view
of protecting the riding public
2. The registered owner is primarily liable for all
the consequences of the operations of the
carrier.
3. The registered owner cannot recover from the
actual owner and the latter cannot obtain
transfer of the vehicle to himself, both being in
pari delicto (Teja Marketing vs. IAC, 148 SCRA
347)
4. Both the registered owner and the actual owner
are solidarily liable with the driver (Zamboanga
Tranportation Co. vs. CA, 30 SCRA 717)
5.
Arrastre Operator
The legal relationship between the consignee and the
arrastre operator is akin to that of a depositor and a
warehouseman. The relationship between the
consignee and the common carrier is similar to that
of the consignee and the arrastre operator. Hence,
the duty of the arrastre operator to take care of the
goods that are in its custody and to deliver them in
good condition to the consignee also devolves upon
the common carrier. Thus, the arrastre operator and
the common carrier are liable in solidum for the
proper delivery of the goods to the consignee
(Eastern Shipping Lines v. CA, 234 SCRA 78)
TOWAGE
ARRASTRE
I. CARRIAGE OF GOODS
Defenses
1. Flood, storm, earthquake, lighting, or other natural
disaster or calamity.(Caso Fortuito/Force Majeure)
2. Act of public enemy in war, whether international or
civil
3. Act or omission of shipper or owner of goods
4. Character of goods or defects in packing or in
containers.
5. Order or act of competent authority (Art. 1734)
6. Stipulation limiting liability of carrier (Arts. 1744,
1448, 1749, 1750)
Presumption of Negligence
1. If the goods are lost, destroyed or deteriorated,
common carriers are presumed to have been at fault
or to have acted negligently (Art. 1735)
2. Mere proof of the delivery of goods in good order to a
common carrier and their arrival in bad order at their
destination makes for a prima facie case against the
carrier (Coastwise Lighterage Corp. vs. CA, 245 SCRA
796)
3. The court need not make an express finding of fault
or negligence, the law imposes liability upon common
carriers, as long as it is shown that:
a. There is a contract between the shipper and
common carrier
b. Loss or deterioration took place during the
existence of contract
STEVEDORING
Duration of Liability
Commencement: from the time the goods are
unconditionally placed in the possession of, and received
by the carrier for transportation
Termination: actual or constructive delivery by the
carrier to the consignee or to the person who has the right
to receive them (Art. 1736)
Liability remains:
1. Even when goods are temporarily unloaded or stored
in transit unless the shipper or owner has made use of
the right of stoppage in transitu (Art. 1737)
2. And when goods are stored in the carriers warehouse
at the place of destination until the consignee has
been advised of the arrival thereof and had
reasonable opportunity thereafter to remove or
dispose them (Art. 1738)
3. Delivery to the customs authorities is not delivery to
5.
6.
7.
8.
9.
Injurious to health
Goods will be exposed to untoward danger like flood,
capture by enemies and the like
Goods like livestock will be exposed to diseases
Strike
Failure to tender goods in time
Not Passengers:
1. One who has boarded by fraud, stealth or deceit
2. Rides any part of the vehicle unsuitable or dangerous
or which he knows is not designated or intended for
passengers
3. Remains on a carrier for an unreasonable length of
time after he has been afforded every safe
opportunity to alight
Utmost Diligence
A common carrier is bound to carry the passengers
safely as far as human care and foresight can provide,
using the utmost diligence of very cautious persons,
with a due regard for all the circumstances (Art.
1755)
BAR QUESTION (Q): X, an 80-year old epileptic,
boarded the S/S Tamaraw in Manila going to
Liability remains:
1. 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 vs. Navidad)
2. Includes reasonable time to remain on the
premises to see after his baggage and prepare for
his departure (La Mallorca vs. CA, 17 SCRA 739)
3. Extends to persons boarding the cars as well as to
those alighting therefrom. It is the duty of
common carriers to stop their conveyances a
reasonable length of time to afford passengers an
opportunity to enter (Dangwa Trans Co. vs. CA,
202 SCRA 574)
Presumption of Negligence
1. In case of death of or injury to passengers, common
carriers are presumed to have been at fault or to
have acted negligently (Art. 1756 NCC). This provision
applies the doctrine of res ipsa loquitor for several
reasons:
a. The contract imposes on the carrier the
obligation to transport the passengers safely,
hence the burden of explaining should fall on the
carrier;
b.
2.
CHECKED-IN
(In custody of the
carrier)
Considered as goods
Requires extraordinary
diligence
Governed by Arts. 17331753
III. ACTIONS
Causes of Action:
1. Culpa Contractual
The liability of the carrier is not merely
subsidiary or secondary but direct, immediate
and primary. (Medina vs. Cresencia, 99 Phil. 506)
Only the carrier is primarily liable and not the
driver, because there is no privity between the
driver and the passenger.
No defense of due diligence in the selection and
supervision of employees. (Art. 1759)
2.
Culpa Aquiliana
The carrier and driver are solidarily liable as
joint tortfeasors.
Defense of due diligence in the selection and
supervision of employees is available. Except:
maritime tort resulting in collision
Culpa Delictual
The driver is primarily liable. The carrier is
subsidiarily liable only if the driver is convicted
and declared insolvent (Art. 100 RPC)
3.
OVERLAND TRANSPORTATION
Scope:
1. Domestic land and water/maritime transportation
2. Domestic air transportation
Bill of lading
Written acknowledgment of receipt of goods and
agreement to transport them to a specific place to a
person named or to his order.
Note: It is not indispensable for the creation of a
contract of carriage. The contract itself arises from
the moment goods are delivered by the shipper to the
carrier and the carrier agrees to carry them
(Compania Maritima v. Insurance Company of North
America, 12 SCRA 213)
Functions:
1. A receipt for the goods shipped.
2. A contract which the three parties (shipper, carrier,
3.
COGSA
Notice of damage not a
condition precedent
3-day period for nonapparent damage
1-year period
Also does not cover
misdelivery or delay
Extrajudicial demand
does not toll prescriptive
period
1-year period cannot be
shortened
MARITIME LAW
Characteristics:
1. Real
a. Similar to transactions over real property with
respect to effectivity against third persons which
is done through registration
b. Evidence of real nature is shown by (1) limitation
of liability of agents to actual value of the vessel
and freight money; and (2) right to retain cargo
and embargo and detention of vessel (Luzon
Stevedoring Corp v. CA, 156 SCRA 169)
2. Hypothecary
Liability of owner of vessel is limited to the value
of vessel (Doctrine of Limited Liability)
I. DOCTRINE OF LIMITED LIABILITY
No vessel, no liability
The liability of ship owners is limited to the amount
of interest in said vessel such that where vessel is
entirely lost, the obligation is extinguished (Luzon
Stevedoring v. Escano, 156 SCRA 169)
Interest extends to:
1. Vessel itself
2. Equipments
3. Freightage
4. Insurance proceeds (Chua v. IAC, 166 SCRA 183)
Exceptions:
1. Where injury or damage is due to ship owners fault
2. Vessel is insured
3. Claims under Workmens Compensation
4. Expenses for repair on vessel before loss
5. Vessel is not abandoned
6. Voyage is not maritime but only in a river or gulf
Abandonment
1. Indispensable requirement before the shipowner or
ship agent can enjoy the benefits of the limited
liability principle. The only instance where such
abandonment is dispensed with is when the vessel
was entirely lost.
2. Only the ship owner and the ship agent can make an
abandonment
3. What may be abandoned vessel
4. Instances:
a. Civil liability from indemnities to third persons
(Art. 587 Code of Commerce)
b. Leakage of at least of contents of cargo
containing liquids (Art. 687)
c. Constructive loss of vessel (Sec. 138 Insurance
Code)
See notes on Overland Transportation for right
of consignee to abandon goods
5. No procedure to be followed
6. No prescriptive period provided not estopped from
invoking the same or do acts inconsistent with
abandonment
7.
Admiralty Jurisdiction
all actions in admiralty and maritime jurisdiction
where the claim exceeds P300,000 or in Metro Manila,
exceeds P400,000 the RTC has jurisdiction (Sec. 19(3)
BP 129, as amended by RA 7691)
II. VESSELS
Ownership
1. Acquisition
a. Prescription (1) acquisition must appear in a
written instrument, (2) which shall not produce
any effect to third persons if not inscribed in the
registry of vessels and (3) shall be acquired by
possession in good faith, continued for 3 years,
(4) with a just title duly recorded. (5) In the
absence of any of these, continuous possession
for 10 years shall be necessary to acquire
ownership.
b. Sale
If made while it is on voyage the freightage
which it earns from the time it receives its last
cargo shall pertain entirely to the purchaser,
and the payment of the crew and other
persons who make up its complement shall be
for his account.
If made after vessel arrived at port of its
destination freightage shall pertain to the
vendor, and the payment of the crew and
other individuals who make up its complement
shall be for his account, unless the contrary is
stipulated in either case.
2.
III. PARTIES
1.
2.
3.
4.
Nature of Position
1. General agent of the ship-owner
2. Technical director of the vessel
3. Representative of the government of the country
under whose flag he navigates
Qualifications:
1. Filipino citizen
2. Legal capacity to contract
3. must have passed the required physical and
mental examinations required for licensing him
as such (Art. 609)
Supercargoes - Persons who discharge administrative
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 (Art.
649)
CHARTER PARTY
Charterer may rescind
charter party by
paying half of
freightage agreed
upon
The new owner is not
compelled to respect
the charter party so
long as he can load
the vessel with his
own cargo
Classes:
1. Bareboat or Demise Charter
Charterer provides crew, food and fuel. The
charterer is liable as if he were the owner,
except when such arises from the unworthiness
of the vessel
Owner pro hac vice a demise charterer, in spite
of the fact that somebody else is the owner of
the vessel, is treated as the owner of the
chartered vessel, just for that one particular
purpose only.
Effect: charterer assumes customary rights and
liabilities of the ship-owner to third persons and
is held liable for the expense of the voyage and
the wages of the seamen
2. Contract of Affreightment
Owner leases the boat or part of it for the
carriage of goods
1. Time charter vessel is chartered for a
period of time or duration of voyage
2. Voyage or trip charter contract for hire of
vessel for one or series of voyages
BAREBOAT / DEMISE
Charterer becomes liable
to others caused by its
negligence
Charterer regarded as
owner pro hac vice for
the voyage
Owner of vessel
relinquishes possession,
command and navigation
to charterer
Common carrier becomes
private
AFFREIGHTMENT
Owner remains liable as
carrier and must
answer for any breach
of duty
Charterer is not
regarded as owner
Owner retains
possession, command
and navigation of the
ship
Common carrier
remains as such
VI. ACCIDENTS
Formal Requirements:
1. By means of public instrument
2. Policy signed by the contracting parties and the
broker taking part therein
3. Private instrument
Who may contract:
Bottomry ship owner or ship agent. Outside of the
residence of the owners, the captain.
Respondentia only the owner of the cargo, except:
(i) on the portion of the vessel he owns, provided no
money has been previously borrowed on the whole
vessel, nor exists any other kind of lien or obligation
chargeable against her; (ii) when he is permitted to
do so, he must necessarily state what interest he has
in the vessel
ORDINARY LOAN
1.
2.
3.
4.
Averages
Collision
Arrival Under Stress
Shipwreck
3.
Shipwreck
Denotes all types of loss/ wreck of a vessel at sea
either by being swallowed up by the waves, by
running against another vessel or thing at sea or on
coast where the vessel is rendered incapable of
navigation
SALVAGE LAW (Act 2616)
TOWAGE
Governed by NCC on
contract of lease
Success not required
Only the consent of the
tugboat owner is needed
Vessel need not be
involved in an accident
Fees belong to the
tugboat owner
Tower has no possessory
lien; only an action for
sum of money
Court cannot change
amount in towage even
if unconscionable
Requisites:
1. Contracts for carriage of goods
2. By sea
3. To and from Philippine ports
4. In foreign trade
2.
3.
Scope:
1. International transport by air
2. Transport of persons, baggage, or goods
Note: Warsaw Convention prevails over the Civil
Code, Rules of Court and all laws in the Philippines
since an international law prevails over general law.
International Transportation by Air any
transportation in which the place of departure and
the place of destination are situated either:
1. Within the territories of two High Contracting
Parties regardless of whether or not there be a
break in the transportation or transshipment
2. Within the territory of a single High Contracting
Party, if there is an agreed stopping place within
a territory subject to the sovereignty, mandate
or authority of another power, even though that
power is not a party to the Convention (round
trip)
Note: Absence of agreement concerning stopping
place transportation not deemed international for
purposes of the WC
of
passengers,
3.
4.
5.
Exceptions:
1. Warehouses
2. Animal drawn vehicles and bancas moved by oar
or sail; tugboats
3. Airships, except for the fixing of maximum rates
for fare and freight
4. Radio companies, except for rates fixing
5. Public services owned or operated by the
government, except as to rates fixing
6. Ice plants
7. Public markets
3.