Professional Documents
Culture Documents
Parties
1. Common carrier 1. Common carrier
2. Shipper 2. Passenger
3. Consignee
Cause of liability
Delay in delivery, loss, destruction, Death or injury to the passengers
or deterioration of the goods
Duration of liability
From the time the goods are The duty of a common carrier to
unconditionally placed in the provide safety to its passengers
possession of, and received by theso obligates it not only during the
carrier for transportation until the
course of the trip, but for so long
same are delivered actually or as the passengers are within its
constructively by the carrier to the
premises and where they ought to
consignee or to the person who be in pursuance to the contract of
has the right to receive them. (Art.
carriage. (LRTA v. Navidad,
1736) [2003])
It remains in full force and effect
All persons who remain on the
even when they are temporarily premises within a reasonable time
unloaded or stored in transit after leaving the conveyance are
unless the shipper or owner has to be deemed passengers, and
made use of the right of stoppage what is a reasonable time or a
in transitu. (Art. 1737) reasonable delay within this rule
It continues to be operative is to be determined from all the
even during the time the goods arecircumstances, and includes a
stored in a warehouse of the reasonable time to see after his
carrier at the place of destination
baggage and prepare for his
until the consignee has bee departure. (La Mallorca v. CA, 17
advised of the arrival of the goods
SCRA 739 ; Abiotiz Shipping
and has had reasonable
Corporation v. CA, 179 SCRA 95)
opportunity thereafter to remove It is the duty of common
them or otherwise dispose of carriers of passengers to stop
them. (Art. 1738) their conveyances a reasonable
Delivery of goods to the custom length of time in order to afford
authorities is not delivery to thepassengers an opportunity to
consignee. (Lu Do v. Binamira, 101enter, and they are liable for
Phil 120) 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
Void stipulations
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)
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.
(Shewaram vs. PAL, 17 SCRA 606)
A. OVERLAND TRANSPORTATION
(Arts. 349-379)
Applicability
1. Domestic land and water/maritime transportation. (Pandect of Commercial Law and
Jurisprudence, Justice Jose Vitug, 1997 ed.)
2. Domestic Air Transportation. (Commercial Law Review, Cesar Villanueva, 2004 ed.)
IMPORTANT CONCEPTS:
1. Bill of lading
2. Obligations of the carrier
3. Right of abandonment
4. Notice of damage
5. Combined carrier agreement
BILL OF LADING
The written acknowledgment of receipt of goods and agreement to transport them to a
specific place to a person named or to his order.
Rules:
1. It is not indispensable for the creation of a contract of carriage. (Compania Maritima vs.
Insurance Company of North America, 12 SCRA 213)
2. Ambiguity is construed against the carrier, the contract being one of adhesion.
3. The consignee, although the instrument is oftentimes drawn up only by the consignor and
carrier, becomes bound by all the stipulations contained therein by making a claim for loss on
the basis of said bill of lading. (Sea-Land Services Inc. vs. IAC)
4. The right of a party to recover for loss of shipment consigned to him under a bill of lading
drawn up only by and between the shipper and the carrier, springs from either a relation of
agency between him and the shipper, or his status as stranger in whose favor some stipulation is
made in said contract, and who becomes a party thereto when he demands fulfillment of that
stipulation. (Art. 1311 (2), (Mendoza vs. PAL Inc.)
5. Acceptance of the bill of lading without dissent raises the presumption that all the terms
therein where brought to the knowledge of the shipper and agreed to by him and, in the absence
of fraud or mistake; he is estopped from thereafter denying that he assented to such terms.
(Notes and Cases on the Law on Transportation and Public Utilities, Aquino, T. & Hernando, R.P.
2004 ed. p.261)
Kinds:
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.
Functions:
1. Best evidence of the existence of the contract of carriage of cargo (Art. 353)
2. Document of title
3. Receipt of cargo
4. Contract to transport and deliver goods as stipulated
5. Symbol of the goods
Time of delivery
Stipulated in No
Contract/Bill stipulation
of Lading
1. Carrier is 1. Within a
bound to fulfill reasonable
the contract time.
and is liable for 2. Carrier is
any delay; no bound to
matter from forward them
what cause it in the 1st
may have shipment of
arisen. the same or
similar goods
which he may
make to the
point of
delivery. (ART.
358 Code of
Commerce)
Effects of delay
a. Merely suspends and generally does not terminate the contract of carriage
b. Carrier remains duty bound to exercise extraordinary diligence
c. Natural disaster shall not free the carrier from responsibility (Art.1740)
d. 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)