Transportation Laws 2003

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TRANSPORTATION LAWS
COMMON CARRIERS (ARTICLES 1732-1766)
- are
PERSONS,
CORPORATION,
FIRMS,
or
ASSOCIATIONS
engaged
in
CARRYING
or
TRANSPORTING PASSENGERS or GOODS or BOTH, by
LAND, WATER, or AIR for COMPENSATION OF
OFFERING THEIR SERVICES TO THE PUBLIC.
Extraordinary diligence is required to common carriers in
transporting goods and passengers
Reasons:
1. nature of the business
2. public policy
Registered owner primarily and solidarily with driver under the
KABIT SYSTEM. Kabit system is contrary to public policy;
therefore, void and inexistent.
CIRCUMSTANCES UNDER WHICH COMMON CARRIERES
CANNOT BE HELD LIABLE FOR THE LOSS/DESTRUCTION
OF GOODS:
1. flood, storm, earthquake, or other natural calamities
2. act of public enemy in war, either international or local
act or omission of the shipper or owner of the goods
3. character of the goods or defects of the packing
4. order of competent authority
Extraordinary diligence lasts from the time the cargoes are
loaded in the vessel until they are discharged and delivered to
the consignee.
Air carriers can terminate services of pilots for serious
misconduct and drunkenness because of its extraordinary
diligence.
INSTANCES WHICH ARE NOT CASO FORTUITO:
1. hijacking
2. acts of strangers like thieves or robbers acted with grave or
violence
3. accidents due to defects of carrier
4. where tie blow-out
Fire is not a natural disaster
Notice of arrival of goods amounts to constructive delivery
Shipper bound to observe all diligence in obtaining delivery of
goods
Common Carriers may be exempted from responsibility
PROVIDED that natural disaster is the proximate and only
cause of the loss.
STIPULATIONS LIMITING LIABILITY IS VALID PROVIDED
THAT:
1. the stipulation be in writing signed by both parties
2. the stipulation be supported by a valuable consideration
other than the service rendered by common carrier
3. the stipulation be reasonable, just and not contrary to
public policy
COMMERCIAL LAW REVIEWER

SAINT LOUIS UNIVERSITY BAR OPERATIONS
SOME VALID STIPULATIONS LIMITING CARRIER'S

LIABILITY:
1. account as strikes or riot
2. value of the goods appearing in bill of lading UNLESS
shipper declares a greater value
3. contract fixing the sum that may be recovered
VOID STIPULATIONS LIMITING CARRIER'S LIABILITY:
1. the goods are transported at the risk of the shipper
2. that the shipper is not liable for any loss or destruction of
the goods
3. that the common carrier need not observed any diligence
and less than that of good father of a family
4. that the common carrier shall not be responsible for any
acts of its employee
The law of the country to which the goods are to be transported
shall govern the liability of common carrier for their loss,
destruction, or deterioration.
The act of the thief or robbers who entered the common carrier's
vehicle is not deemed force majeure UNLESS it is done with the
use of arms or through irresistible force.
A common carrier is bound to carry the passengers safely as far
as human care and foresight can provide using the utmost
diligence of a very cautious person with a regard of
circumstances.
In case of death or injuries to passengers, common carriers are
presumed to be at fault UNLESS proved that they observe extra
ordinary diligence.
LAST CLEAR CHANCE
- this principle applies only in a suit between owners and
drivers of two colliding vehicles. This is not applicable to
Contract of Carriage.
Carrier not ordinarily liable for injuries to passengers due to
fires, and explosions caused by articles brought into
conveyance by other passengers.
Ticket is a complete written contract by and between the
shipper and passenger for it contains:
1. consent of the contracting parties
2 cause or consideration which is the fare paid by the
passengers
3. object which is the transportation of the passenger from
the place of departure to the place of destination.
Reduction of fare does not justify any limitation of the common
carrier's liability.
Passenger bound notwithstanding his failure to sign plane ticket
containing stipulation limiting liability known as contract of
adhesion.
The extraordinary diligence required for carriage of
passengers cannot be dispensed with:
1. by stipulation
2. by posting of notices
3. by statement of tickets
Prepared by the COMMERCIAL LAW SECTION Chief MARLON CORPUZ Assistant Chief MA. LOURDES COMTIAG Members MARLON
BACUNO, VOLTAIRE GARCIA, JEANNYLENE ISIP, BEVERLY MANZANO, KATHRYN BOLINAS, LOTTA OBADO, GRESIL SANTOS and
VENUS DUGAYON. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE OF LAW BAR OPERATIONS 2003.
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4.
otherwise however as an exception, parties may stipulate

limiting carrier's liability where the passenger is carried
gratuitously
Common Carrier is liable for damages for defects of its

equipment.
Common Carrier is liable for the misconduct of its employees
done in their own interest.
Reason: the servant is clothed with the delegated authority and
charged with duty by the carrier to execute his undertakings to
carry the passenger safely.
Carrier exempt from acts of employees not done in line of duty.
The passenger must observe the diligence of a good father of a
family or ordinary diligence to avoid injury to himself.
EFFECTS OF NEGLIGENCE- where the proximate cause of the
death/ injury to the passenger is his own negligence, common
carrier is exempted from liability.
EFFECT OF PASSENGER'S CONTRIBUTORY NEGLIGENCEpassenger's contributory negligence does not justify carrier's
exemption from liability. However, the damages will be equitably
reduced.
A common carrier is responsible for injuries suffered by a
passenger on account of the lawful acts/negligence of other
passengers or of strangers provided that the employees could
have prevented the act or omission through the exercise of a
good father of a family.
Degree of diligence required of carriers employees- merely that
of the good father of a family or ordinary diligence.
Liability of air carrier under Warsaw Convention of October
12,1929, article 17, the carrier shall be liable for damages
sustained in the event of death or injury of a passenger if
accident took place on board the aircraft or in the course of
embarking or disembarking.
Article 18(1), the carrier shall be liable for damages sustained in
the event of destruction or loss of or of damage to any checked
baggage or any goods in the course of transportation.
(2), the transportation of air shall comprise the period during
which the baggage or goods are in the charge of the carrier
whether an airport or on board an aircraft or in case of landing
outside an airport.
(3), the period of transportation by air shall not extend to any
transportation by land, sea, or river outside an airport.
Article 19, the carrier shall be liable for damages occasioned by
delay in transportation by air of passengers, baggage, or goods.
DAMAGES RECOVERABLE WHEN DEATH OCCURS DUE
TO COMMISSION OF A CRIME:
1. indemnity for death of a victim
2. indemnity for loss of earning
3. moral damages
4. exemplary damages
5. attorney's fees and expenses of litigation,
6. interest and properties
FACTORS TO BE CONSIDERED IN AWARDING DAMAGES
ARISING FROM DEATH:
1. number of years on the basis of which the damages shall
be computed
2. rate at which the losses sustained should be fixed

For fixed indemnity for death, there is no need to interrogate

witness.
Common carrier not liable for moral damages to passenger s
injured due to negligence of driver.
Carrier is liable when it issues to passenger a confirmed ticket
for a particular ticket if he is not put in that flight.
Carrier liable only for damages that are natural and probable
consequence and breach of contract which includes medical,
hospital and other expenses.
ITEMS INCLUDED IN ACTUAL DAMAGES:
1. income to be earned upon completion of studies
2. the sum being carried by deceased passenger which was
lost
3. amount spend to her funeral
4. attorney's fees and court expenses
5. loss of the merchandise carried by the deceased
6. loss of baggage containing medicine, boxes, and suitcases
of personal belongings
EXCEPTIONS TO RULE THAT CARRIER NOT LIABLE FOR
MORAL DAMAGES IN BREACH OF CONTRACT:
1. where the mishap results in the death of passenger
2. where it is proved that the carrier is guilty of fraud or bad
faith even if death does not result
3. where the passenger suffers social humiliation, wounded
feelings, anxiety and mental anguish
Surviving passenger is not entitled to moral damages. Mere
carelessness of the carrier does not per se constitute an
inference of malice or bad faith on its part.
Carrier subsidiary liable for moral damages in actions ex delicto.
Exemplary damages cannot be recovered as a matter of right.
Nominal and exemplary damages awarded for willful breach of
contract committed through agent or employee.
Carrier incurring only delay not liable for moral and exemplary
damages but only to the limited amount printed in the plane
ticket.
Exemplary damages is allowable under Kabit System.
Common Carrier in Nominal Damages for failure of carrier to
bring passenger to his destination but mere violation of a
Contract of Carriage does not warrant recovery for moral
damages.
In case of breach of the carrier's contractual obligation to carry
his passenger safely to their destination, the carrier is solidarily
liable for his driver's negligence. Exercise of due diligence in
selecting driver is not a defense.
Preponderance of evidence sufficient to prove civil liability
arising from negligence.
OVER LAND TRASPORTATION

(arts. 349379, Code of Commerce)
Effect of Civil Code on the provisions of the Code of Commerce
on Overland Transportation
The NCC does not expressly repeal the provisions of

the Code of Commerce on overland transportation.
Instead, it makes such provision suppletory to the
provisions of the NCC on common carriers
Bill of Lading, Defined
Written acknowledgement of receipt of goods and

agreement to transport them to a specific place to a
person named or to his order or bearer.
Ambiguity is construed against the carrier, the
contract being one of adhesion.
Not essential to contract.
Kinds of Bills of Lading
They are:
(1). Negotiable bill of Lading 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 in such document.
(2). NonNegotiable bill of Lading the goods referred
to therein will be delivered to a specified person.
(3). Clean bill of Lading One which does not indicate
any defect in the goods
(4). Foul bill of Lading Contains a notation indicating
that the goods are in bad Condition.
(5). Spent bill of Lading Covers goods that have
already been delivered by the carrier without a surrender of a
signed copy of the Lading.
(6). Through bill of Lading Issued by a carrier who is
obliged to use the facilities of other carriers.
(7). On Board bill of lading one in which it is stated
that the goods have been received on board the vessel which is
to carry the goods.
(8). Received for Shipment bill of lading 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.
(9). Custody bill of Lading issued by the carrier to
the whom the goods have been delivered for shipment but the
vessel indicated in the bill of leading which is to carry the goods
has not yet reached the port where the goods are held for
shipment.
(10). Port bill of Lading one which is issued by the
carrier to whom the goods have been delivered, and the vessel
to carry the goods is already in the port where the goods are
held for shipment.
ThreeFold nature of bills of Lading
(1). A contract in itself and the parties are bound by its
terms;
(2). A receipt; and
(3). A symbol of the covered by it
They are also documents of title, and if
negotiable in form they can constitute negotiable
documents of title.
Legal effect of the Issuance of Bill of Lading

Bill of leading constitute the legal evidence of the
contract between the shipper and the carrier by the
contents of which the disputes which may arise
regarding their execution and performance shall be
decided, no exception being admissible other than
those of falsity and material error in the drafting.
Effect of absence of a bill of lading
It does not preclude liability on a contract of
transportation. The disputes shall be determines by
the legal proofs which the parties may present in
support of their respective claims, according to the
general provisions established in the Code for
commercial contracts.
When responsibility of carrier begins
The responsibility of carrier commences from the
moment he receives the merchandise. The Delivery
to him must be made either to him personally, or
through his duly authorized agent.
Right to refuse packages

Gen. Rule: a common carrier cannot
ordinarily refuse to carry a particular class of gods to the
prejudice of the traffic in those goods.
Exception: However, under Art. 365, carrier are
authorized to refuse packages if they are unfit for transportation.
Time for delivery of goods

Where no period fixed
The carrier shall be bound to forward them in the
first shipment of the same or similar goods, which
he makes to the points where he must deliver
them. Should he not do so, the damages caused
by the delay shall be for his account.
Where for delivery of goods
The carrier must deliver the goods within the time
fixed. For failure to do so, the carriers shall pay
the indemnity stipulated in the bill of lading. Also,
damages shall be paid if the carrier refuses to
pay the stipulated indemnity or is quality of fraud
in the fulfillment of his obligation.
Limitation as to carriers liability
(1). No Liability
The carrier will not be liable at all for the
negligent acts of its crew and employees. This is
NULL and VOID for being contrary to public
policy
(2). Limited Liability
Regardless of the value of the cargo, the
maximum liability of the carrier will be, for
example, P500. This id VOID for being contrary
to public policy.
(3). Qualified Liability
A stipulation in the bill of lading limiting the
liability of the carrier to a valuation unless the
shipper declares a higher value and pays a
higher rate of freight is valid.
However, the carrier cannot limit its liability
for injury to, or loss of, good shipped where
such injury or lose was caused by its own
negligences.
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Recovery of Damages from carriers for carriage of
goods:
(1) Inter-island if gods arrived in damaged condition:
If damage is apparent, the shipper must file
a claim immediately.
If damage is Not apparent he should file a
claim within 24 hours from delivery.
The filing of claim is a condition

precedent for recovery.
If the claim is filed, but the carrier

refuses to pay:
Enforce carriers liability in court by filing
a case:
Within 6 years, if no bill of

lading has been issued, or
Within 10 years, if a bill

lading has been issued.
(2) Overseas Where goods arrived in a damaged
condition from a foreign port to a Philippines Port of Entry:
Upon discharge of goods, if the damage is
apparent claim should be filed immediately;
If damage is not apparent, claim should be
filed within 3 days from delivery.
When may a consignee of goods abandon the
goods and recover the value thereof from the carrier?
In any of the following cases:
(1) Under Art. 363, in case of partial non-delivery, where
the consignee proves that he cannot make use of the
goods capable of delivery independently of those not
delivered.
(2) Under Art. 365, where the goods are rendered useless
for sale and consumption for the purpose for which
they are properly destined; or
(3) Under Art. 371, where there is delay through the fault
of the carrier.
Two special sanctions for the
carrier of the payment of expenses
charges.
They Are:
(1). Under Art. 374, judicial
transported; and
(2). Under Art. 375, by creating
carrier on the goods transported.
enforcement by the
and transportation
sale of the goods
a lien in favor of the
Exemption from liability of the common carrier

A common carrier may be freed from liability for loss
or damage if it proves any of the following:
(a) Natural disaster
(b) Act of the Public enemy in war
Act or omission of the shipper
(d) Defect in the packing and character of the goods
(e) Order of competent public authority
MARITIME COMMERCE
I.
VESSELS (in general)

-extends to everything floating in and on the water,
built in the form of vessel and used for navigation
regardless of form, right or motive power.

MERCHANT VESSELS- engaged in the transportation of

passengers and freight from one port to another or from one
place to another.
*Are vessels real or personal property?
PERSONAL- but they partake to a certain extent, of the nature
and conditions of real property, on account of their value and
importance of the world of commerce.
CHARACTERISTICS OF MARITIME TRANSACTIONS:
1. Real- similar to transactions over real property with
respects too effectively against third persons, which is done
through registration. The evidence of real nature is shown
by (1) the limitation of the liability of the agents to the actual
value of the vessel and the freight money and (2) the right
to retain the cargo and embargo and detention of the
vessel.
2. Hypothecary- the liability of the owner of the value of the
vessel is limited to the vessel itself.
3. Preference of credits- Mortgage of a vessel properly
registered becomes of preferred mortgage lien which shall
have priority over all claims against the vessel in an
extrajudicial foreclosure for:
a. credit in favor of the public treasury
b. judicial cost of the proceedings;
c. pilotage and tonnage charges and other sea and port
changes;
d. salaries of depositories and keepers of the vessel
e. captain and crew's wages;
f. general average
g. salvage including contract salvage;
h. maritime liens arising prior in time to the recording of
the preferred mortgage;
i. damages arising out of tort; and
j. Preferred mortgage registered prior in time.
DOCTRINE OF LIMITED LIABILITY:
General Rule: 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. The interest extends
to (1) the vessel itself, (2) equipment, (30 freightage and (4)
insurance proceeds.
Exceptions:
1. claims under Workmen's Compensation
2. injury or damage due to ship owners fault
3. the vessel is insured
4. expenses for repair on vessel before loss;
5. the vessel is not abandoned
PHILIPPINE COAST GUARD (PCG)
-vested with exclusive authority over the registration and
documentation of Philippine vessels, issuance of all certificates,
licenses or documents, necessary or incident to registration.
VESSELS REQUIRED TO BE REGISTERED:
1. All vessels used in Philippine water.
2. Vessels of 3 tons gross shall not be registered UNLESS the
owner shall so desire.
3. All undocumented vessels.
Where Registration to be effected?
- at its home port (when a coast guard district or station is on
the same port); if none, at the nearest COAST GUARD
DISTRICT OR STATION).
OPTIONS AS TO SMALL BOATS:
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1.) If vessel is of domestic ownership and 15 tons gross or
less certificate of Philippine registry is optional.
Purpose: declare nationality of a vessel
2.) Vessel (5 tons gross or less) & no certificate of Philippine
registry certificate of ownership is optional.
Privileges: right to engage in Phil. Coastwise trade and
protection of the authorities and the flag is also subject to
the same privileges.
3.) Vessel (3 tons gross or less) not be registered unless
the owner shall so desire.
PURPOSE OF REGISTRATION:
- Purchaser's rights maybe maintained against a claim filed
by the THIRD PERSON.
*Who shall be entitled to the freightage and who shall be obliged
to pay the crew and other persons who make up the compliment
of the vessel?
A: It depends upon the time of the sale.
If made while it is on a voyage, freightage shall pertain entirely
to PURCHASER and payment of the crew and other persons
who make up its compliment for same voyage shall be for his
account.
If made after the vessel has arrived at the port of its destination,
freightage shall pertain to the VENDOR and other individuals
who make up its complement shall be for his account, UNLESS
the contrary is stipulated in either case.
FORMALITIES FOR VOLUNTARY SALE ABROAD:
1. Execution of the bill of sale before consul of the Philippines
at the port where it terminates its voyage.
2. Inscription in the registry of the consulate
3. Forwarding by the consul of a true copy of the instrument of
purchase and sale to the registry of vessel.
4. Statement whether the vendor receives its price in whole or
in part.
FORMALITIES FOR SALE WHEN VESSEL RENDERED
USELESS:
1. application for examination
2. notification of the consignee/ insurer
3. proof of damage and impossibility of the repair of the
vessel
4. order for the sale of vessel at public auction
RULES FOR THE SALE OF VESSEL AT PUBLIC AUCTION:
1. articles of the vessel shall be appraised after making an
inventory
2. posting of the order of the auction
3. announcement
4. auction shall be held on the day fixed
5. Observance of special provisions, governing the sale of the
vessel while it is on the foreign country.
2 METHODS OF SALE:
1. judicial
2. voluntary
EFFECT OF REGISTRATION OF JUDICIAL SALE
- extinguish all other liabilities of the vessel
*Effect of Registration of Voluntary Sale
- if it take place while the vessels is on a voyage, the
preferred & hypotyhecary nature of the credit subsists
against the vessel until after its return to the port of registry
and 3 months after the inscription of the sale in the registry

of vessels or after the return, so as to prevent the

possibility of fraud upon creditors through voluntary sale.
PARTICIPANTS IN MARITIME COMMERCE:
a. shipowners and ship agents
b. captains and masters of the vessel
c. officers and crew of the vessel
c.1 sailing (1st mate)
c.2 quartermaster (2nd mate)
c.3 engineer
d. seamen
e. supercargoes
A. SHIPOWNERS AND SHIP AGENTS
Ship owner- person who has possession control in
management of the vessel and the consequent right to direct
her navigation and receive freight earned and paid, while his
possession continues.
Ship agent-person entrusted with provisioning and representing
the vessel in the port in which it may be found; also includes the
ship owner
LIABILITY OF SHIPOWNER AND SHIPAGENT:
1. for the acts of the captain
2. contracts entered into by the captain to repair, equip, and
provision the vessel PROVIDED that the amount claimed
was invested for the benefit of the vessel
3. Indemnities in favor of third person that may arise from the
conduct of the captain in the care of goods and safety of
passengers transported.
4. Tort or quasi-delict committed by captain EXCEPT collision
with another vessel.
5. Damages in case of collision due to the fault, negligence or
want of skill of captain, sailing mate or by other member of
the complement.
SHIPAGENT'S AND OWNERS LIABILITY LIMITED:
- By abandoning the vessel with all her equipment and the
freight it may have earned during the voyage(by
NECESSARY IMPLICATION); limited to the value of the
vessel or its insurance in view of the so-called REAL AND
HYPOTHECARY nature of maritime law.
- Effect: cessation of the responsibility of the owner
POWER AND FUNCTIONS AND LIABILITIES OF SHIP
AGENT:
1. capacity to trade;
2. discharge duties of the captain in case of the latter's
absence;
3. contract in the name of the owners with respect to repairs,
details of equipment, armament, and all that relate to the
requirements of navigation;
4. order of new voyage and make a new charter or insure the
vessel after obtaining authorization from the ship owners.
DUTY OF SHIPAGENT TO DISCHARGE THE CAPTAIN AND
MEMBERS OF THE CREW:
- If the seamen contract is not for a definite period or voyage,
he mat discharge them at his discretion
- If for a definite period, he may not discharge them until
after the fulfillment of their contracts EXCEPT on the ff.
Grounds:
a. insubordination in serious matters
b. robbery
c. theft
d. habitual drunkenness
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e.
damage caused to the vessel or to its cargo through

malice, manifest or proven negligence
EFFECT/LOSS/DESTRUCTION OF VESSEL:
1. extinguishes liability arising from the conduct of the captain
in the vigilance of the goods and for the safety of the
passengers and for any liability arising from negligent acts
of the captain
2. extinguishes liability for the wages for the captain and the
crew and for advances made by the ship agent if the vessel
is lost by shipwreck or capture
3. liability for collision
B. CAPTAINS AND MASTERS OF THE VESSEL
Captain- who govern vessels that navigate the high seas or
ships of large dimensions and importance, although engaged in
the coastwise trade
Masters- who command smaller ships engaged exclusively in
the coastwise trade
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, mental
examination required for licensing him as such
INHERENT POWERS OF THE CAPTAIN:
1. appoint crew in the absence of ship agent
2. command and direct crew
3. impose correctional punishment on those who while on
board vessel fail to comply with his orders or are wanting in
discipline
4. make contracts for the charter of vessel in the absence of
ship agent
5. supply, equip, and provision the vessel
6. order repair of vessel to enable it to continue its voyage
SOURCES OF FUNDS TO COMPLY WITH THE INHERENT
POWERS OF THE CAPTAIN:
1. from the consignee of the vessel
2. from the consignee of the cargo
3. by drawing on the ship agent
4. by a loan on bottomry
5. by sale of part of the cargo
DUTIES OF THE CAPTAIN:
1. bring on board the proper certificate and document and a
copy of the Code of Commerce
2. keep a logbook, accounting book and freight book
3. examine before the voyage
4. stay on board during the loading and unloading of the
cargo
5. be on deck while leaving or entering the port
6. seeks protest, arrival under stress and in case of shipwreck
7. follow instruction of and render accounting to the ship
agent
8. save the vessel lost in case of wreck
9. hold in custody properties left by deceased by passengers
and crew members
10. comply with the requirements of customs, health, etc. at the

port of arrival
LIABILITIES OF THE SHIPAGENT/SHIPOWNER FOR ACTS
DONE BY THE CAPTAIN TOWARDS PASSENGERS AND
CARGOES MAKING THEM SOLIDARILY LIABLE TO THE
LATTER:
1. damages to vessel and to cargo due to lack of skill and
negligence
2. theft and robbery of the crew
3. losses and fines in violation of laws
4. damages due to mutinies
5. damages due to misuse of power
6. deviations
7. arrival under stress
8. damages due to non-observance of marine regulations
NO LIABILTY FOR THE FOLLOWING:
1. damages caused to the vessel by force majeure
2.
obligations contracted for the repair, equipment and
provisioning of the vessel UNLESS he has expressly bound
himself personally or has signed a bill of exchange or
promissory note in his name
CARGO- which includes all goods, wares and merchandise
aboard a ship which do not from part of the ship's stores.
REQUIREMENTS FOR DEFENSE OF PUBLIC ENEMY:
1.
act of public enemy in war was the proximate and only
cause of the loss
2.
common carrier exercise due diligence to prevent,
minimize loss before, during, and after occurrence of the act of
the public enemy in war
FORMALITIES REQUIRED WHERE VESSEL HAS GONE
THROUGH HURRICANE
1. Captain must make a protest before competent authority at
the first port he touches
2. Such a protest must be made within 24 hours following his
arrival
3. captain must ratify it within some period when he arrives at
his destination
4. he must immediately proceed with the proof of the facts
FORMALITIES
REQUIRED
WHERE
VESSEL
SHIPWRECKED:
1. captain must make a protest before the nearest competent
authority
2. protest be made within 24 hours following his arrival
3. make sworn statement of the facts
4. authority/consul abroad shall verify said facts
5. such authority shall take other steps in carrying at the facts
6. such authority shall also make statements of what may be
the result of the proceeding in the logbook and in that of the
sailing mate
7. he shall deliver the original records to the captain
8. captain must ratify the protest
C. OFFICERS AND CREW
1.
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Sailing mate/First mate

second chief of the vessel who takes the place of the
captain in case of absence, sickness, or death and shall
assume all of his duties, powers, and responsibilities
DUTIES:
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1.
2.
3.
4.
2.
-
Second mate
takes command of the vessel in case of the inability or
disqualification of the captain and the sailing mate,
assuming in such case their powers and responsibilities
and duties
DUTIES:
1.
2.
3.
4.
5.
3.
-
provide himself with maps, and charts with

astronomical tables necessary for the discharge of his
duties
keep the Binnacle book
Change the course of the voyage on consultation with
captain and the officers of the boat, following the
decision of the captain in case of disagreements.
Responsible for all the damages caused to the vessel
or to the cargo by reason of his negligence
preserve the hull and rigging of the vessel

arrange well the cargo
discipline the crew
assign work to crew members
Inventory the rigging and equipment of the vessel, if
laid up.
Engineers
Officers of the vessel but have no authority EXCEPT in
matters to motor apparatus. When 2 or more are hired, one
of them should be the Chief Engineer
DUTIES:
1. in charge of motor apparatus, spare parts, and other
instruments pertaining to the engines
2. keep the engines and boilers in good condition
3. not to change or repair the engine without authority of
the captain
4. inform the captain of any damage to the motor
apparatus
5. keep an Engine book
6. supervise all personnel maintaining the engine
4.
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Members of the Crew

hired by the ship agent. Where he is present and in his
absence, the captain hires them preferring Filipinos, and in
their absence, he ,ay take in foreigners but not exceeding
1/5 of the crew.
CLASSES OF SEAMAN'S CONTRACT:

1. by the voyage
2. by the month
3. by share of profits or freightage
JUST CAUSES FOR THE DISCHARGE OF SEAMAN WHILE
CONTRACT SUBSISTS:
1. perpetration of a crime
2. repeated insubordination, want of discipline
3. repeated incapacity and negligence
4. habitual drunkenness
5. physical incapacity
6. desertion
CAUSES OF REVOCATION OF VOYAGE:
1. war
2. blockade
3. prohibition to receive cargo at destination
4. embargo
5. inability of the vessel to navigate
RULES IN CASE OF DEATH OF A SEAMAN:

- The seaman's heirs are entitled to the payment as follows:
1. if death is natural:
a. compensation up to time of death if engaged on
voyage
b. if by voyage- half of amount if death occurs on
voyage out; and full if on voyage in
c. if by shares- none if before departure; full if after
departure
2.
if death is due to defense of vessel- full payment
3.
if captured in defense of vessel- full payment
4.
if captured due to carelessness- wages up to the date of

the capture
NO LIABILY UNDER THE FOLLOWING CIRCUMSTANCES:

1.
2.
3.
If before beginning voyage, captain attempts to change it or

a naval war with the power to which was destined occurs
If a disease breaks out and be officially declared an
epidemic in the port of destination
If the vessel change owner or captain
COMPLEMENT OF THE VESSEL

- All persons on board, from the captain to the cabin boy,
necessary for the management, maneuvers, and service,
thus including the crew, the sailing mates, engineers,
stalkers and other employees on board not having specific
designations
- It does not include the passengers or the person whom the
vessel is transported
FORMALITIES REQUIRED FOR SEAMAN'S AGREEMENT:
1. reduced to writing in Accounting Book
2. signed by parties
3. visaed by marine authority if executed in Philippine
territory/consul or consular agents if executed abroad
4. read to the seaman concerned and such fact must be
stated in the agreement
Interdiction of Commerce
- a governmental prohibition of commercial intercourse
intended to bring about an entire cessation for the time
being of all trade
Embargo
- a proclamation or order of the State usually issued in time
of war/ threatened hostilities prohibiting the departure
ships/ goods from some or all the ports of such State until
further order
Blockade
- a sort of circumvallation of place by all foreign connections
and correspondence is as far as human power can affect it
to be cut-off
D. SUPERCARGOES
- person 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
CHARTER PARTY
8
-
contract by virtue of which the owner or agent binds himself

to transport merchandise or persons of a fixed price
B.
CLASSES OF CHARTER PARTY

1. As to extent of vessel hired
a. total- whole of the vessel is chartered
b. partial- only part of the vessel is chartered
2.
3.
As to time
a. until a fixed day/ for a determined number of days and
months
b. for a voyage(outgoing/return/roundtrip)
As to freightage
a. for a fixed amount for the whole cargo
b. for a fixed amount per ton
c. for an amount per month
FORMAILITIES REQUIRED FOR A CHARTER PARTY:

1. in writing
2. drawn in duplicate
3. signed by the parties
4. contain stipulation
not all requisites are essential for the validity of charter
party
Primage
- belongs to owner/ freighters;
- increase of the freight rate
- considered gratuity to master if is stipulated
Demurrage
- sum which is fixed by the contract of carriage, or which is
allowed, as remuneration to the owner of a ship for the
detention of his vessel beyond the number of days allowed
by the charter party for loading/unloading/sailing.
"Lay days"
- days allowed to charter parties for loading and unlading
"Extra Lay Days"
- days which followed after lay days have elapsed
GOODS TRANSFERRED MAY BE:
1. sold by captain to necessary repairs
2. jettisoned for the common safety
3. loss by reason of shipwreck/stranding
4. seized by pirates/enemies
5. suffer deterioration/diminutions
6. increase by natural cause and weight or size
RIGHTS AND OBLIGATIONS OF CHARTER PARTY:
A. Of the ship owner or ship agent
1. If the vessel chartered wholly not to accept cargo from
others
2. To observe represented capacity
3. To unload cargo clandestinely placed
4. To substitute another vessel if load is less than 3/5 of
capacity
5. To leave the port if the charter does not bring the
cargo within the lay days and extra lay days allowed.
6. To place in a vessel in a good condition to navigate
7. To bring cargo to nearest neutral port in case of war or
blockade
Of the charterer
1. to pay the agreed charter price
2. to pay freightage or unboarded cargoes
3. to pay losses to others for loading uncontracted cargo
and illicit cargo
4. to wait if the vessel needs repair
5. to pay expenses for deviation
RESCISSION OF CHARTER PARTY

A. At charterer's request
1. by abandoning the charter and paying half of the
freightage
2. error in tonnage or flag
3. failure to place the vessel at the charterer's disposal
4. return of the vessel due to pirates, enemies or bad
weather
5. arrival at the port for repairs
B.
At ship owners request

1. If the extra lay days terminate without cargo being
placed alongside the vessel
2. Sale by the owner of the vessel before loading
C. Fortuitous causes
1. war
2. blockade
3. prohibition to receive cargo
4. embargo
5. inability of the vessel to navigate
Loan on Bottomry
- loan made by ship owner or ship agent guaranteed by
vessel itself and repayable upon arrival of vessel at
destination
Loan on Respondentia
- loan , taken on security of the cargo laden on the vessel,
and repayable upon safe arrival of cargo at safe
designation
COMMON ELEMENTS OF LOANS ON BOTTOMRY AND
RESPONDENTIA
1. exposure of security or marine peril
2. obligation of the debtor conditioned only upon safe arrival
of security at the point of destination
EXCEPTIONS TO THE HYPOTHECARY NATURE OF
BOTTOMRY AND RESPONDENTIS:
1. loss due to inherent defect
2. loss due to the barratry on the part of the captain
3. loss due to the fault or malice of the borrower
4. that the vessel is engaged in contraband
5. that the cargo loaded on the vessel be different from that
agreed upon
ACCIDENTS IN MARITIME COMMERCE:
1. AVERAGES
2. ARRIVAL UNDER STRESS
3. COLLISION
4. SHIPWRECK
2.
I.
-
Averages
an extraordinary or accidental expense incurred during the
voyage in order to preserve the cargo, vessel or both and
all damages or deterioration suffered by the vessel from
departure to the port of destination and to the cargo from
the port of loading to the port of consignment
CLASSES:
1. Particular/Simple
- damage / expenses caused to the vessel or cargo that did
not inured to the common benefit and borne by respective
owner
- the owner of the goods which give rise to expense or suffer
damage shall bear this average
2.
-
Gross/ General
damage/ expenses deliberately caused in order to save the
vessel, its cargo or both from real or known risk
3.
4.
5.
both vessels at fault- each vessel must bear its own loss
but the shippers of both vessel may go against the ship
owner who will be solidarily liable
vessel at fault not known- same as rule 2
third vessel at fault- same rule 1
fortuitous event- no liability, each bear its own loss
IV.
SHIPWRECK
- loss of the vessel at sea as a consequence of its grounding
or running against an object in sea or on the coast
- if the wreck was due to malice, negligence or lack of skill of
the captain, the owner of the vessel may demand indemnity
from said captain.
COMMON CARRIERS
( ARTICLES 1732-1766)
-REQUISITES:
a. common danger
b. deliberate sacrifice
c. success
d. proper formalities and legal steps
Common Carriers
- are
PERSONS,
CORPORATION,
FIRMS,
or
ASSOCIATIONS
engaged
in
CARRYING
or
TRANSPORTING PASSENGERS or GOODS or BOTH, by
LAND, WATER, or AIR for COMPENSATION OF
OFFERING THEIR SERVICES TO THE PUBLIC.
ORDER OF GOODS TO BE CAST OVERBOARD IN CASE OF

JETTISON:
1. those which are on the deck, preferring the heaviest one
with the least utility of value
2. those which are below the upper deck beginning with the
one with greatest weight and smallest value
Extraordinary diligence is required to common carriers in

transporting goods and passengers
Reasons:
1. nature of the business
2. public policy
Registered owner primarily and solidarily with driver under the
KABIT SYSTEM. Kabit system is contrary to public policy;
therefore, void and inexistent.
II.
-
Arrival Under stress

arrival of a vessel at a port of destination on account of lack
of provision, well-founded fear of seizure, pirates, or
accidents in sea disabling navigation
when unlawful:
1. lack of provisions due to negligence to carry according
to usage and customs
2. risk of enemies not well-known or manifest
3. defect due to improper repair
4. malice, negligence, lack of foresight, lack of skill
III.
COLLISION
- impact of two vessels both of which are moving
CIRCUMSTANCES UNDER WHICH COMMON CARRIERES

CANNOT BE HELD LIABLE FOR THE LOSS/DESTRUCTION
OF GOODS:
1. flood, storm, earthquake, or other natural calamities
2. act of public enemy in war, either international or local
5. act or omission of the shipper or owner of the goods
6. character of the goods or defects of the packing
7. order of competent authority
Extraordinary diligence lasts from the time the cargoes are
loaded in the vessel until they are discharged and delivered to
the consignee.
ALLISION
- impact between a moving vessel and stationary one
Air carriers can terminate services of pilots for serious

misconduct and drunkenness because of its extraordinary
diligence.
ZONES OF TIME IN COLLISION OF VESSELS:

1. First zone- all time up to the moment when risk of collision
begins
2. Second Zone- time between moment when risk of collision
begins and moment it becomes a practical certainty
3. Third Zone- time when collision is certain and time of
impact
INSTANCES WHICH ARE NOT CASO FORTUITO:

1. hijacking
2. acts of strangers like thieves or robbers acted with
grave or violence
3. accidents due to defects of carrier
4. where tie blow-out
CASES COVERED BY COLLISION AND ALLISION:

1. one vessel at fault- such vessel is liable for damage caused
to innocent vessel as well as damages suffered by owners
of cargo of both vessels
Fire is not a natural disaster

Notice of arrival of goods amounts to constructive delivery
Shipper bound to observe all diligence in obtaining delivery of
goods
10
Common Carriers may be exempted from responsibility
PROVIDED that natural disaster is the proximate and only
cause of the loss.
STIPULATIONS LIMITING LIABILITY IS VALID PROVIDED
THAT:
1. the stipulation be in writing signed by both parties
2. the stipulation be supported by a valuable
consideration other than the service rendered by
common carrier
3. the stipulation be reasonable, just and not contrary to
public policy
SOME VALID STIPULATIONS LIMITING CARRIER'S

LIABILITY:
1. account of strikes or riot
2. value of the goods appearing in bill of lading UNLESS
shipper declares a greater value
3. contract fixing the sum that may be recovered
VOID STIPULATIONS LIMITING CARRIER'S Liability:
1. the goods are transported at the risk of the shipper
2. that the shipper is not liable for any loss or destruction
of the goods
3. that the common carrier need not observed any
diligence and less than that of good father of a family
4. that the common carrier shall not be responsible for
any acts of its employee

Reduction of fare does not justify any limitation of the common

carrier's liability.
Passenger bound notwithstanding his failure to sign plane ticket
containing stipulation limiting liability known as contract of
adhesion.
The extraordinary diligence required for carriage of
passengers cannot be dispensed with:
1. by stipulation
2. by posting of notices
3. by statement of tickets
4. otherwise however as an exception, parties may
stipulate limiting carrier's liability where the passenger
is carried gratuitously
Common Carrier is liable for damages for defects of its
equipment.
Common Carrier is liable for the misconduct of its employees
done in their own interest.
Reason: the servant is clothed with the delegated authority and
charged with duty by the carrier to execute his undertakings to
carry the passenger safely.
Carrier exempt from acts of employees not done in line of duty.
The passenger must observe the diligence of a good father of a
family or ordinary diligence to avoid injury to himself.
The law of the country to which the goods are to be transported

shall govern the liability of common carrier for their loss,
destruction, or deterioration.
EFFECTS OF NEGLIGENCE- where the proximate cause of the

death/ injury to the passenger is his own negligence, common
carrier is exempted from liability.
The act of the thief or robbers who entered the common carrier's
vehicle is not deemed force majeure UNLESS it is done with the
use of arms or through irresistible force.
EFFECT OF PASSENGER'S CONTRIBUTORY NEGLIGENCEpassenger's contributory negligence does not justify carrier's
exemption from liability. However, the damages will be equitably
reduced.
A common carrier is bound to carry the passengers safely as far

as human care and foresight can provide using the utmost
diligence of a very cautious person with a regard of
circumstances.
In case of death or injuries to passengers, common carriers are
presumed to be at fault UNLESS proved that they observe extra
ordinary diligence.
LAST CLEAR CHANCE
- this principle applies only in a suit between owners and
drivers of two colliding vehicles. This is not applicable to
Contract of Carriage.
Carrier not ordinarily liable for injuries to passengers due to
fires, and explosions caused by articles brought into
conveyance by other passengers.
Ticket is a complete written contract by and between the
shipper and passenger for it contains:
1. consent of the contracting parties
2. cause or consideration which is the fare paid by the
passengers
3. object which is the transportation of the passenger
from the place of departure to the place of destination.
A common carrier is responsible for injuries suffered by a

passenger on account of the lawful acts/negligence of other
passengers or of strangers provided that the employees could
have prevented the act or omission through the exercise of a
good father of a family.
Degree of diligence required of carriers employees- merely that
of the good father of a family or ordinary diligence.
Liability of air carrier under Warsaw Convention of October
12,1929, article 17, the carrier shall be liable for damages
sustained in the event of death or injury of a passenger if
accident took place on board the aircraft or in the course of
Article 18(1), the carrier shall be liable for damages sustained in
the event of destruction or loss of or of damage to any checked
baggage or any goods in the course of transportation.
(2), the transportation of air shall comprise the period during
which the baggage or goods are in the charge of the carrier
whether an airport or on board an aircraft or in case of landing
outside an airport.
(3), the period of transportation by air shall not extend to any
transportation by land, sea, or river outside an airport.
Article 19, the carrier shall be liable for damages occasioned by
delay in transportation by air of passengers, baggage, or goods.
11
DAMAGES RECOVERABLE WHEN DEATH OCCURS DUE

TO COMMISSION OF A CRIME:
1. indemnity for death of a victim
2. indemnity for loss of earning
3. moral damages
4. exemplary damages
5. attorney's fees and expenses of litigation,
6. interest and properties
FACTORS TO BE CONSIDERED IN AWARDING DAMAGES
ARISING FROM DEATH:
1. number of years on the basis of which the damages
shall be computed
2. rate at which the losses sustained should be fixed
Common Carrier in Nominal Damages for failure of carrier to

bring passenger to his destination but mere violation of a
Contract of Carriage does not warrant recovery for moral
damages.
In case of breach of the carrier's contractual obligation to carry
his passenger safely to their destination, the carrier is solidarily
liable for his driver's negligence. Exercise of due diligence in
selecting driver is not a defense.
Preponderance of evidence sufficient to prove civil liability
arising from negligence.
-
For fixed indemnity for death, there is no need to interrogate

witness.
Common carrier not liable for moral damages to passenger s
injured due to negligence of driver.
Carrier is liable when it issues to passenger a confirmed ticket
for a particular ticket if he is not put in that flight.
Carrier liable only for damages that are natural and probable
consequence and breach of contract which includes medical,
hospital and other expenses.
PUBLIC SERVICE LAW

(C.A. No. 146 as amended and modified by
PD No. 1 Integrated Reorganization Plan and E.O.546)
INTRODUCTION:
PUBLIC SERVICE OR PUBLIC UTILITY DEFINED
ITEMS INCLUDE IN ACTUAL DAMAGES:

1. income to be earned upon completion of studies
2. the sum being carried by deceased passenger which
was lost
3. amount spend to her funeral
4. attorney's fees and court expenses
5. loss of the merchandise carried by the deceased
6. loss of baggage containing medicine, boxes, and
suitcases of personal belongings
Public ServiceService includes every person that now or

hereafter may own, operate, manage or control in the
Philippines for hire or compensation, with general or
limited clientele, whether permanent, occasional or
accidental, and done for general business purposes,
any common carrier, shipyard, ice plant, electric light,
heat and power or any other utility, (Sec. 13 b, C.A.
146 as amended).
EXCEPTIONS TO RULE THAT CARRIER NOT LIABLE FOR

MORAL DAMAGES IN BREACH OF CONTRACT:
1. where the mishap results in the death of passenger
2. where it is proved that the carrier is guilty of fraud or
bad faith even if death does not result
3. where the passenger suffers social humiliation,
wounded feelings, anxiety and mental anguish
Public UtilityUtility a business or service engaged in

supplying the public with some commodity or service
of public consequence. (Albano v. Reyes, 175 SCRA
264)
Surviving passenger is not entitled to moral damages. Mere

carelessness of the carrier does not per se constitute an
inference of malice or bad faith on its part.
Carrier subsidiarily liable for moral damages in actions ex
delicto.
ORDINARY AND PRIMARY PURPOSE OF THE PUBLIC

SERVICE LAW
ORDINARY PURPOSE:
To subject public services to state control and
regulation.
SPECIFIC PURPOSES:
1.
Exemplary damages cannot be recovered as a matter of right.

Nominal and exemplary damages awarded for willful breach of
contract committed through agent or employee.
Carrier incurring only delay not liable for moral and exemplary
damages but only to the limited amount printed in the plane
ticket.
Exemplary damages is allowable under Kabit System.
2.
To secure adequate, sustained service for

the public at the least possible cost, and
protect the public against unreasonable
charges and poor inefficient service.
To protect and conserve investments which
have already been made for public service,
and prevent ruinous competition.
BASIS OF THE LEGISLATIVE POWER TO REGULATE

PUBLIC SERVICES:
POLICE POWER, for the protection of the public as

well as the utilities themselves. (Pantranco v. P.S.C.,
70 Phil 221)
12
CONSTITUTIONAL BASIS:
1. ARTICLE XII, SECTION 11:
> A franchise, certificate, or any other form of
authorization for the operation of public utility
shall be granted to:
-
LIMITATIONS ON THE POWERS OF THE REGULATORY

BOARDS, COMMISSIONS AND COUNCILS:
1.
Powers are limited from those granted in the

legislation creating the body.
Filipino Citizens
Corporations or associations
organized under Philippine Laws
where at least 60% of the capital
is owned by Filipino Citizens.
100% Filipino Management
2.
3.
OFFICES NOW CHARGED WITH ENFORCEMENT OF

PUBLIC SERVICE LAW
The Public Service Commission has been abolished. The
following replaced it:
1.
2.
3.
4.
5.
6.
LAND
TRANSPORTATIONDepartment
of
Transportation and Communication (DOTC) and the
Land Transportation Franchising and Regulatory
Board (LTFRB)
WATER TRANSPORTATION- Maritime Industry
Authority (MARINA)
AIR TRANSPORTATION- Air Transportation Office
(ATO) headed by an assistant secretary and the Civil
Aeronautics Board, which has been placed under the
DOTC as an attached agency.
TELECOMMUNICATIONSNational
Telecommunications Commission, which has been
placed under the DOTC as an attached agency.
ENERGY- Board of Energy but transferred to the
Energy Regulatory Board (ERB)
WATERWORKS- National Water Resources Council
The DOTC shall be the primary entity in

Transportation and Communication
Judicial:
Boards, commissions are not judicial tribunals

and therefore cannot determine judicial questions
such as validity of contract.
2. ARTICLE XII, SEC 17:

In times of national emergency, when the public
interest so requires, the State may during the
emergency and under reasonable terms, temporarily
take over or direct the operation of any private owned
public utility or business affected with public interests.
4. ARTICLE XII, SECTION 19

The state shall regulate or prohibit monopolies when
the public interest so requires; no combination in
restraint of trade or unfair competition shall be allowed
Constitutional:
Regulations imposed must not have the effect of

depriving an owner of his property without due
process of law nor confiscating or appropriating
private property without just compensation.
> Mass
media
and
commercial
telecommunications shall be:
- 100% Filipino Capital, and
- 100% Filipino management
3. ARTICLE XII, SECTION 18

The state may, in the interest of national welfare or
defense, establish and operate vital industries and
upon payment of just compensation, transfer to public
ownership utilities and other private enterprises to be
operated by the government.
General:
4.
Jurisdiction:
Extends only to persons engaged in public

utilities, or over a public utility, which holds a
Certificate of Public Convenience.
B.
JURISDICTION
General Rule: Over persons engaged in public
utilities, or over a public utility, which holds a
Certificate of Public Convenience.
Exemption: violators of a valid regulation
promulgated under the law
C.
a)
GENERAL POWERS OF THE COMMISSION

ISSUE CERTIFICATES
CERTIFICATE OF PUBLIC CONVENIENCE (CPC)

An authorization issued by the commission for the
operation of public services for which no franchise either
municipal or legislative is required by law.
CERTIFICATE OF PUBLIC CONVENIENCE &
NECESSITY (CPCN)
An authorization issued by the commission for the
operation of public services for which a franchise is
required by law.
1.
NATURE OF A CERTIFICATE OF PUBLIC

CONVENIENCE
It constitutes neither a FRANCHISE nor
a CONTRACT. It confers no property rights and is
a mere license or privilege.
2.
GENERAL RULE: NECESSITY OF

CERTIFICATE OF PUBLIC CONVENIENCE or
CERTIFICATE OF PUBLIC CONVENIENCE &
NECESSITY
Unless otherwise exempt, no public
service shall operate without having been issued
13
a certificate of public convenience (no franchise
is required by law) or a certificate of public
convenience and necessity (a prior franchise is
required by law).
3.
EXCEPTIONS TO THE PRIOR OPERATOR RULE:

1.
Operator fails/ neglects to make

improvement or effect the
increase in service when
given the opportunity.
2.
When Prior operator offers to meet
increases in demand only when another operator offered
to render additional service
3.
Abandonment of operation
4.
Prior operators did not oppose
application
5.
Prior operator cannot satisfy needs of
the public
6.
When opportunity to improve service is
raised by prior operator only on appeal.
7.
CPC granted to the applicant is a
maiden franchise covering a new route, albeit
overlapping with that of the old operator
8.
Expiration of corporate existence of
prior operator.
9.
Monopoly
10.
Passage through private subdivision
which granted permit to another
EXCEPTIONS (Section 14, Public Service Law)
Certificate of public convenience, not necessary in the

following:
a. Warehouses
b. Animal drawn vehicles, bancas powered by oar or sail;
tugboats, lighters or pedal driven vehicles
c. Airships except as to fixing of rates
d. Radio Companies, except as to fixing of rates
e. Public utilities operated by the National Government
f. Government or political subdivisions except as to rates
g. Iceplants
h. Public Markets
4.
REQUISITES BEFORE A CERTIFICATE OF

PUBLIC CONVENIENCE MAY BE GRANTED:
a.
b.
c.
d.
CITIZENSHIP Filipino Citizen; Filipino

Corporations/ Associations
FINANCIAL CAPACITY
PUBLIC NECESSITY
PUBLIC CONVENIENCE
a)
a)
b)
c)
Considerations:
FINANCIAL
RESPONSIBILITY
OF
APPLICANTS
RELIABILITY OF
THE APPLICATION
PRIORITY
OF
FILING THE APPLICATION
PRIORITY
OF
OPERATION
PRIOR APPLICANT RULE

Priority in the filing of application for a CPC is, other
conditions being equal, an important factor in determining the
rights of the public service companies, and in the granting or
refusal of a certificate. (Batangas Trans Co. v Orlanes, 52 Phil
455)
PRIOR OPERATOR RULE
The law contemplates that the first licensee will be
protected in his investment and will not be subjected to a
ruinous competition. It is not therefore the policy of the law to
issue a CPC to a second operator to cover the same field and in
competition with a first operator who is rendering sufficient,
adequate and satisfactory service, and who in all things and
respects is complying with the rules and regulations of the
commission. The old operator must be given the opportunity to
improve and extend his lines. (Batangas Trans Co. v Orlanes,
52 Phil 455)
BASIS OF THE PRIOR OPERATOR RULE
Prevent ruinous and wasteful competition and interest
of public will be preserved.
b.)
TO APPROVE ANY FRANCHISE OR
PRIVILEGE GRANTED BY ANY POLITICAL SUBDIVISION OF
THE PHILIPPINES WHEN IN ITS JUDGMENT SUCH
FRANCHISE OR PRIVILEGE WILL PROPERLY CONSERVE
THE PUBLIC INTEREST.
Requirement of previous notice and hearing.
The exercise of the said power is it discretionary as it is subject to conditions, equipment, maintenance, service and
operation;
In the exercise of the above-mentioned power it is also

necessary to determine whether the exercise of the rights
or privileges granted by the franchise are necessary and
adequate for the public convenience.
NATURE OF FRANCHISE:
Franchise is NOT exclusive in nature.
Section 11, Article XII, 1987 Philippine
Constitution No franchise, certificate, or any other form
of authorization for the operation of a public utility shall be
granted except to citizens of the Philippines or to
corporations or associations organized under the laws of
the Philippines at least sixty per centum of whose capital is
owned by such citizens, nor shall such franchise,
certificate, or authorization be exclusive in character or
for a longer period than fifty years.
Franchise subject to amendment and repeal.
Section 11, Article XII, 1987 Philippine
Constitution - Neither shall such franchise or right be
granted except under the condition that it shall be subject
to amendment, alteration, or repeal by the Congress when
the common good so requires.
General Rule:
Exclusivity of franchise is not favored that is
why in all grants by the government to private corporations
14
the interpretation of rights privileges or franchises is

taken against the grantee.
HOWEVER if exclusivity is given by law it
should be with the understanding that the company
enjoying it is self sufficient and capable of supplying
the needed service or product at moderate or
reasonable prices.
E.g. ERB has authority to issue an order

granting provisional increase of prices even without
notice and hearing.
1.
In reality a franchise is a contract between the

State and the grantee.
Question: Since a franchise is a contract is this
governed by the non-impairment clause of the
Constitution?
Answer: No, while it is true that a franchise is in
the nature of a contract, which the parties to it
must respect it is not a contract such as is
protected from impairment by the Constitution.
N.B.
2.
3.
4.
The holder of a legislative franchise has

preference over the holder of a municipal franchise
granted more than a year later.
If the holder of a municipal franchise was
subsequently granted with a legislative franchise the
former will be repealed by the latter.
A municipality does not have the legal right
to nullify a legislative franchise by arbitrarily refusing
to approve plans of the company receiving the
legislative franchise made pursuant to a provision
therein.
Note however that the Commission may
disapprove a municipal franchise and it may deny an
application without infringing the legislative
prerogative of the municipal council, because the
Commission merely exercises a power granted by
law.
PSC has power to regulate manner of
disconnecting services by MERALCO to delinquent
customer. It can compel MERALCO that before it can
effect disconnection of it services to a delinquent
customer it is required that it must first give a written
notice of disconnection 48 hours in advance.
5.
6.
7.
That before the Commission can fix rates there must

first be a notice and hearing.
HOWEVER, the Commission in its discretion can
PROVISSIONALY approve rates proposed by
public services WITHOUT NOTICE AND HEARING
PROVIDED that WITHIN THIRTY (30) DAYS
THEREAFTER A HEARING MUST BE HELD UPON
PREVIOUS PUBLICATION AND NOTICE TO THE
CONCERNS OPERATING IN THE TERRITORY
AFFECTED.
DETERMINATION OF JUST AND REASONABLE

RATES.
The fixing of rates is a legislative and
governmental power over which the government has
complete control. BUT it has no power to fix rates
which are unreasonable or to regulate them arbitrarily,
and that as to whether a given rate is fair and
reasonable is a judicial question over which the courts
have complete control.
c.)
THE COMMISSION HAS ALSO THE POWER TO FIX
AND DETERMINE INDIVIDUAL AND JOINT RATES, TOLLS,
CHARGES, CLASSIFICATIONS OR SCHEDULES THEREOF,
KILOMETRAGE, AND OTHER SPECIAL RATES. (Section 16
(c) (PBQ Bar 2000)
EXTENT OF THE POWER OF THE COMMISSION

TO FIX RATES.
Rates are submitted by the public carriers but are
subject to approval by the PSC which is NOT limited in
the selection of the old or the new rates but could NOT
establish such rates as are proper under the evidence
presented.
The maximum rate fixed in a franchise, which its
holder is authorized to collect, is always subject to a
revision and regulation by the PSC.
The PSC has also the power to order the refund of
overcharges. The requirement is not in the nature of
a penalty but is merely a measure by which the
public services concerned are asked to return what
they did not have the right to collect.
In another case, the Court also said that when the
Commission is empowered by law to fix the rates of
freight which vessels may charge, it is implied that the
vessels may not legally demand more than those
rates.
The Commission has the power to alter the
established rates in a certificate of public
convenience, especially where the order fixing the
rates is in the nature of an experiment for a period of
four months.\
Where it appears that a proposed joint fate system
with transfers in relation to a point of contract between
two transportation lines would serve the convenience
of the public, the PSC has authority to find a public
need and thereafter to approve such joint fare system.
But the PSC cannot delegate to a public service its
power to fix and determine the rates.
N.B. There is a legal presumption that the

rates are reasonable and it must be conceded that the
fixing of rates by the government through its
authorized agent, involves the exercise of reasonable
discretion and unless there is an abuse of that
discretion
REQUIREMENTS FOR A JUST AND REASONABLE

RATE
1.
One which yields to the carrier a fair return upon the

value of the property employed in performing the
service;
One which is fair to the public for the services
rendered.
2.
15
E.g. of circumstances justifying increase of rates
exigencies of the present and the future viewed in the
light of recent developments and the experience gained in
connection with the operation of another public utility
analogously situated
d.)
TO FIX JUST AND REASONABLE STANDARDS,
CLASSIFICATIONS,
REGULATIONS,
PRACTICES,
MEASUREMENTS, OR SERVICE TO BE FURNISHED,
IMPOSED, OBSERVED, AND FOLLOWED THEREAFTER BY
ANY PUBLIC SERVICE. (SECTION 16 (D))
e.)
TO ASCERTAIN AND
FIX ADEQUATE AND SERVICEABLE STANDARDS FOR THE
MEASUREMENT OF QUANTITY, QUALITY, PRESSURE,
INITIAL OR SERVICE RENDERED BY ANY PUBLIC SERVICE
AND TO PRESCRIBE REASONABLE REGULATIONS FOR
THE EXAMINATION AND TEST OF SUCH PRODUCT OR
SERVICE,
AND
TO
PRESCRIBE
REASONABLE
REGULATIONS FOR THE EXAMINATION AND TEST OF
SUCH PRODUCT OR SERVICE AND FOR THE
MEASUREMENT THEREOF. (SECTION 16 (E))
f.)
TO ESTABLISH REASONABLE RULES AND
REGULATIONS, INSTRUCTIONS, SPECIFICATIONS, AND
STANDARDS, TO SECURE THE ACCURACY OF ALL
METERS AND APPLIANCES FOR MEASUREMENTS.
(SECTION 16 (F))
g.)
TO COMPEL ANY PUBLIC SERVICE TO FURNISH
SAFE, ADEQUATE, AND PROPER SERVICE AS REGARDS
THE MANNER OF FURNISHING THE SAME AS WELL AS
THE MAINTENANCE OF THE NECESSARY MATERIAL AND
EQUIPMENT. (SECTION 16 (G))
NOTES:
The Commission has no power to change
procedure relative to inspection and repair of water
meters.
The PSC is in duty bound to see to it that
persons or companies, holding certificates of public
convenience, render within a reasonable time the
public service that they have been authorized to
render for the benefit of the public.
The PSC shall see to it that the companies
holding Certificates of Pubic Convenience render their
service with in a REASONABLE TIME.
h.)
TO REQUIRE ANY PUBLIC SERVICE TO
ESTABLISH, CONSTRUCT, MAINTAIN AND OPERATE ANY
REASONABLE EXTENSION OF ITS EXISTING FACILITIES
SUCH EXTENSION IS REASONABLE AND PRACTICABLE
AND WILL FURNISH SUFFICIENT BUSINESS TO JUSTIFY
THE CONSTRUCTION OF THE SAID PUBLIC SERVICE
REASONABLE WARRANTS THE ORIGINAL EXPENDITURE
REQUIRED IN MAKING AND OPERATING SUCH
EXTENSION. (SECTION 16 (H))

Thus, the PSC has ample powers to require

and authorize public services which certificates of
public convenience to extend their service when the
necessity of the public so demands.
PSC may grant extension to applicant
whose certificate is subject to condition of nonextension if the Commission is satisfied that public
service or convenience requires or demands that the
line of such extension be run, operated and served
and that the applicant is financially capable of
operating it, the Commission has the power to grant a
certificate of public convenience to the applicant for
the operation of such extension line.
The PSC has also the power to compel a
public service auto-bus operator to change its route in
view of the fact that whatever rights the operator has
to the utilization of the streets of a locality is only by
virtue of the Certificate granted by the Commission.
PSC can permit applicant to operate shorter
route than that applied by him when the
circumstances so demand and it is NOT for the
oppositor to insist that he Commission should have
conceded the applicant a longer route.
i.) TO DIRECT ANY RAILROAD, STREET RAILWAY OR
TRACTION COMPANY TO ESTABLISH AND MAINTAIN AT
ANY JUNCTION OR POINT OF CONNECTION OR
INTERSECTION WITH ANY OTHER LINE OF SAID ROAD OR
TRACK, OR WITH ANY OTHER LINE OF ANY OTHER
RAILROAD, STREET, RAILWAY OR TRACTION TO
PROMOTE THE CONVENIENCE OF SHIPPERS OF
PROPERTY, OR PASSANGERS. SECTION 16 (I)
j.) TO AUTHORIZE, IN ITS DISCRETION, ANY RAILROAD,
STREET RAILWAY OR TRACTION COMPANY TO LAY ITS
TRACKS ACROSS THE TRACKS OF ANY RAILROAD,
STREET RAILWAY OR TRACTION COMPANY OR ACROSS
ANY PUBLIC HIGHWAY. SECTION 16 (J)
k.) TO DIRECT ANY RAILROAD OR STREET RAILWAY
COMPANY TO INSTALL SUCH SAFETY DEVICES OR
ABOUT SUCH OTHER REASONABLE MEASURES AS MAY
IN THE JUDGMENT OF THE COMMISSION BE NECESSARY
FOR THE PROTECTION OF THE PUBLIC AT PASSING
GRADE CROSSING OF
(1) public highways and railroads;
(2) public highways and street railway; or
(3) railway and street railways.
l.) TO FIX AND DETERMINE PROPER AND ADEQUATE
RATES OF DEPRECIATION OF THE PROPERTY OF ANY
PUBLIC SERVICE WHICH WILL BE OBSERVED IN A
PROPER AND ADEQUATE DEPRECIATION ACCOUNT TO
BE CARRIED FOR THE PROTECTION OF STOCKHOLDERS,
BONDHOLDERS OR CREDITORS.
NOTES:
Before the PSC can exercise the abovementioned duty there must first be notice and
hearing.
THE INCOME FROM INVESTMENTS OF MONEY IN

SUCH FUND SHALL LIKEWISE BE CARRIED IN SUCH FUND.
THIS FUND SHALL NOT BE EXPENDED OTHERWISE THAN
FOR DEPRECIATION, IMPROVEMENTS, NEW
16
CONSTRUCTION, EXTENSIONS OR CONDITIONS TO THE

PROPERTY OF SUCH PUBLIC SERVICE. SECTION 16 (L)
The grant of authority regarding unfranchised

operation requires notice and hearing.
NOTES:
Instances when NO NOTICE AND HEARING are necessary.
The rate base is PRESENT VALUE, and it

would be wholly illogical to adopt a different rule for
depreciation.
1.
If the rate base is present fair value, then

the depreciation base as to depreciable property is the
same thing.
2.
3.
m.)
TO AMEND, MODIFY OR REVOKE AT ANY TIME
CERTIFICATE ISSUED WHENEVER THE FACTS AND
CIRCUMSTANCES ON THE STRENGTH OF WHICH SAID
CERTIFICATE
WAS
ISSUED
HAVE
BEEN
MISREPRESENTED OR MATERIALLY CHANGED. SECTION
16 (M)
4.
5.
n.)
TO SUSPEND OR REVOKE ANY CERTIFICATE
ISSUED WHENEVER THE HOLDER THEREOF HAS
VIOLATED OR WILLFULLY AND CONTUMACIOUSLY
REFUSED TO COMPLY WITH ANY ORDER, RULE OR
REGULATION OF THE COMMISSION. SECTION 16 (N)
NOTE: That lack of notice is deemed cured where

the petitioners were able to timely oppose
petitions. They are deemed to have been given due
process of law which simply means the opportunity to
be heard.
PROVIDED THAT THE COMMISSION FOR GOOD

CAUSE MAY PRIOR TO THE HEARING SUSPEND FOR A
PERIOD NOT TO EXCEED THIRTY (30) DAYS ANY
CERTIFICATE OR THE EXERCISE OF ANY RIGHT OR
AUTHORITY ISSUED OR GRANTED BY IT.
o.)
TO FIX, DETERMINE, AND REGULATE, AS THE
CONVENIENCE OF THE STATE MAY REQUIRE, A SPECIAL
TYPE OF AUTO-BUSSES, TRUCKS, AND MOTOR TRUCKS
TO BE HEREAFTER CONSTRUCTED, PURCHASED, AND
OPERATED BY OPERATORS AFTER THE APPROVAL OF
THIS ACT;
TO FIX AND THE DETERMINE THE SPECIAL
REGISTRATION FEE FOR AUTO-BUSSES, TRUCKS, AND
MOTOR TRUCKS SO CONSTRUCTED AND OPERATED.
PROVIDED: THAT SAID FEES SHALL BE
SMALLER THAN THOSE CHARGED FOR AUTO-BUSSES,
TRUCKS, AND MOTOR TRUCKS OF TYPES NOT MADE
REGULATION UNDER THIS SUBSECTION. SECTION 16 (O)
LIMITATIONS ON THE POWER TO AMEND
a.
b.
That before a modification, amendment, or revocation shall

be allowed, it must be shown that the conditions from which
the certificate was granted no longer exist or have altered,
or that the certificate holder has violated or deliberately
refused to comply with the orders, rules and regulations of
the Commission.
There must be notice and hearing before the revocation
can be effected.
- Without notice and hearing? The Order canceling the
Certificate is void.
E.g. A single hold-up incident is not a ground for revoking a
certificate of public convenience.
N.B.
Where the order is a mere order of investigation

preparatory to the final hearing and decision of the
application.
Where the modification of the certificate is only in form and
not in substance, such as, an order granting an application
for substitution.
Where the order is merely to give additional time to register
vehicles.
An order for good cause suspending for a period not to
exceed thirty days any certificate or the exercise or
authority to issued or granted.
Where the authorized line of the oppositor are different
from those for the applicant, the former cannot be
considered to have substantial interest in the application so
as to require his personal notification of the hearing.
Where the Commission entered its order

without notice and hearing, the defect, if any, is cured
by a hearing on the petitioners motion to reconsider
the order. However, the defect is waived where the
applicant petitions for another extension of sixty (60)
days in which to install its franchise.
PSC has the power to re-open case, under
its power to revoke and modify.
GROUNDS FOR SUSPENSION OR REVOCATION OF
CERTIFICATE
The right to operate a public utility is a privilege
granted by the state. Thus it can be revoked when the
holder:
1.
2.
3.
4.
Violates contumaciously refuses to comply with any rule,

order or regulation of the commission
Is a mere dummy
Ceases operation by placing his bus in storage
Abandons the service
NO REVIVAL OF THE CPC DUE TO THE FOREGOING.

The right to a certificate of public convenience
which has been forfeited by the holders voluntary and
unauthorized abandonment of his service and failure to
register his equipment should not be revived simply
because the government would not be able to collect
his tax liabilities.
The mere failure of the Government to collect the tax
liabilities of a holder of a certificate of public convenience is
not a sufficient ground for revoking the Commissions
decision to cancel his certificate where the reasons
therefore are that the holder has completely and voluntarily
abandoned, without authority, the services required by his
certificate.
17
Stoppage of operations sufficient ground for

cancellation of certificate. But the mere failure in good
faith to operate temporarily is NOT a ground for
cancellation of the CPC.
k.
D.
PROCEEDINGS OF COMMISSION WITHOUT
PREVIOUS HEARING.
The Commission shall have power, without
previous hearing, subject to established
limitations and exceptions and saving provisions
to the contrary:
l.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
To investigate, upon its own initiative, or upon complaint in

writing, any matter, concerning any public service as
regards matters under its jurisdiction;
To require any public service to pay the actual expenses
incurred by the Commission in any investigation if it shall
be found in the same that any rate, toll, charge, schedule,
regulation, practice, act or service thereof is in violation of
any provision of this act or service thereof, is in violation of
any provision of this Act or of any certificate, order, rule,
regulation or requirement issued or established by the
Commission;
From time to time apprise and value the property of any
public service, whenever in the judgment of the
Commission it shall be necessary so to do, for the purpose
of carrying out any of the provisions of this Act, and in
making such valuation the Commission may have access
to and use any books, documents, or records in the
possession of any department, bureau, office, or board of
the government of the Philippines or any political
subdivision thereof;
To provide, on motion by or at the request of any consumer
or user of a public service, for the examination and test of
any appliance used for measuring of any product or service
of a public service;
To permit any street railway or traction company to change
its existing gauge to standard steam railroad gauge, upon
such terms and conditions as the Commission shall
prescribe.
To grant to any public service special permits to make extra
or special trips within the territory covered by its certificate
of public convenience, and make special excursion trips
outside of its own territory if the public interest or special
circumstances required it: Provided, however, that in case
a public service cannot render such extra service on its
own line or in its own territory, a special permit for such
extra service may be granted to any other public service;
To require any public service to keep its books, records,
and accounts so as to afford an intelligent understanding of
the conduct of its business and to that end to require every
public service of the same class to adopt a uniform system
of accounting;
To require any pubic service to furnish annual reports of
finances and operations.
To require every public service to file with the Commission
a statement in writing, verified by the oaths of the owner of
the president and the secretary thereof, if a corporation,
setting forth the name, title of office or position, and post
office address and the authority, power and duties of every
officer, member of the board of directors, trustees executive
committee, superintendent, chief or head of construction
and operation thereof;
To require any public service to comply with the laws of the
Philippines and with any provincial resolution or municipal
ordinance relating thereto and to conform to the duties

imposed upon it thereby or by the provisions of its own
character, whether obtained under any general or special
law of the Philippines;
To investigate any or all accidents that may occur on the
property of any public service or directly or indirectly arising
from or connected with its maintenance or operation in the
Philippines; to require any public service to give the
Commission immediate and effective notice of all or any
such accidents, and to make such order or
recommendation with respect thereto as the public interest
may warrant or require;
To require every public service as herein defined to file with
it complete schedules of every classification employed and
of every individual or joint rate, toll fare or charge made,
charged or exacted by it for any product supplied or
rendered within the Philippines and, in the case of public
carriers, to file with it a statement showing the itineraries or
routes served as specified in such requirement.
NOTES:
The Commission not only has the general
supervision over all public utilities and the power
to investigate, upon its own initiative or a complaint in
writing, any just causes or grievances against any of
them, to make and enforce reasonable rules and
regulations, and grant relief in all proper cases and
that it not only has the power to make and enforce
all reasonable rules and regulations for the
operation of any public utility, including water
crafts, vessels and steamships.
The Commission can appoint members of
the PNP stationed in the provinces, as officials in
charge with enforcing its regulations.
The Commission has also the express
power to charge the expense of an investigation
against the operators found guilty of violation of the
conditions of his certificate or of a law or ordinance, as
it has power, for the same cause, to suspend or
revoke a certificate of public convenience.
POWER TO GRANT COMMISSION TO GRANT PERMITS
WITHOUT HEARING.
General Rule:
The Commission has no power to grant
special permits to operate a public service without
NOTICE AND HEARING.
Exceptions:
a. Permit to make extra or special trips within the
territory covered by the certificate of public
convenience; and
b. Special excursion trips outside of the territory of
the public service if public interest or special
circumstances require it.
c. It is a well settled doctrine that for a provisional
permit an ex parte hearing suffices. The decisive
consideration is the existence of a public need.
OPERATIONS OF PUBLIC SERVICE
REGULATIONS AND PROHIBITIONS
18
e.
SECTION 18.
It shall be unlawful to engage in any public service business
without having first secured from the commission a certificate of
public convenience or certificate of public convenience and
necessity as provided for in this act, except grantees of
legislative franchises expressly exempting such grantees from
the requirement of securing a certificate from this commission
as well as concerns at present existing expressly exempted
from the jurisdiction of the commission, either totally or in part,
by the provisions of section 13 of this act.
SECTION 19.
It shall be unlawful for any public service:
a. To provide or maintain any service that is unsafe,
improper or inadequate, or withhold or refuse any
service which can be reasonably demanded and
furnished;
b. To make or give directly or indirectly, by itself or
through its agents, attorneys or brokers, or any of
them, discounts or rebates on authorized rates or
grant credit for the payment of freight charges;
c. To refuse or neglect, when requested by the
director of posts or his authorized representative,
to carry public mail in the regular trips of any
public land transportation service maintained or
operated by any such public service, upon such
terms and conditions and for a consideration in
such amount as may be agreed upon between the
director of posts and the carrier.
SECTION 20.
The following are the acts which requires approval of the
commission:
b.
c.
d.
g.
To adopt, establish, fix, impose, maintain, collect or carry

into effect any individual or joint rates, communication,
mileage or other special rate, toll, fare, charge,
classification or itinerary.
To establish, construct, maintain, or operate new units or
extend existing facilities or make any other addition to or
general extension of the service;
To abandon any railroad station or stop the sale of
passenger tickets, or cease to maintain an agent to receive
and discharge freight at any station now or hereafter
established at which passenger tickets are now or may
hereafter be regularly sold, or at which such agent is now
or may hereafter be maintained, or make any permanent
change in its time tables or itineraries on any railroad or in
its service;
To lay any railroad or street railway across any highway;
When may the public Service Commission or

Regulatory Board approve sale or mortgage of
public service property?
The approval may be given before or after the
consummation of the sale or mortgage. If the approval
takes place after the transfer, the effect thereof is or
may be retroactive. (Zamboanga Trans Co v Bachrach
Motor Co, 52 Phil 244)
Criterion for approval of a sale or encumbrance of

a certificate of public convenience
Under Sec. 20(g), the Commission (now regulatory
boards, commissions and councils) has the power and
authority to approve a sale or transfer of a CPC if:
1. There are just and reasonable
grounds for making the transfer
2. The sale or transfer is not
detrimental to the public interest.
This provision, it is believed is applicable to all
regulatory boards, commissions and councils, as a
result of the transfer of powers and functions. The
jurisdiction and supervision and control over all public
services originally vested in the Public Service
Commission have been distributed among the various
regulatory boards, commissions and councils.
NOTES:
The law does not require that the same
charge be made for carrying passengers or property,
unless all the conditions are alike and
contemporaneous. It does not prohibit the charging of
a different rate for carrying passengers or property
when the actual cost of handling and transporting the
same is different. It is when the prove charged is
for the purpose of favoring persons or localities or
particular kinds of merchandise that the law
intervenes and prohibits. It is favoritism and
discrimination which the law prohibits.
a.
f.
Hereafter to issue any stock or stock certificates

representing an increase of capital; or issue any share of
stock without par value; or issue bonds or other evidence of
indebtedness payable in more than one year from the
issuance thereof;
To capitalize franchise in excess of the amount, inclusive of
any tax or annual charge actually paid to the government of
the Philippines or any other political subdivision thereof as
the consideration of the said franchise;
To sell alienate, mortgage, encumber or lease its property,
franchises, certificates privileges or rights, or any part
thereof, with those of any public service.
The effect of a sale of public service property

without the approval of the pertinent public
service regulatory body
Such transfer is not binding against said
commission and against third persons, and the
original grantee continues to be responsible upon
the franchise. Such approval is not however a
condition precedent to the validity of the contract.
The approval is only necessary to protect public
interest. And as between the parties, the contract
is valid and binding even without such approval.
(Darang v Belizar, January 31, 1967)
The transferor continues to be regarded as
operator where the transfer is without PSCs
approval.
In a transfer NOT APPROVED by the PSC, for
damage caused a passenger the REGISTERED
OWNER is DIRECTLY LIABLE to the passenger,
BUT the TRNSFEREE is liable to the
TRANSFEROR
19
h. To sell or register in its books the transfer or sale of

shares of its capital stock, if the result of that sale in itself or
in connection with another previous sale, shall be to vest in
the transferee more than forty percentum of the subscribed
capital of said public service.
i. To sell, alienate or in any manner transfer shares of its

capital stock to any alien if the result of that sale, alienation,
or transfer in itself in itself or in connection with another
previous sale shall be the reduction to less that 60% of the
capital stock belonging to Philippine citizens.
j.
To issue, give or tender directly or indirectly, any free
ticket, free pass or free or reduced rate of transportation for
passengers, except to the following persons:
(1)
officers, agents employees, attorneys,
physicians and surgeons of said public
service, and members of their families;
(2)
inmates of hospitals or charity
institutions and persons engaged in
charitable work;
(3)
indigent, destitute and homeless
persons when transported by charitable
societies or hospitals, and the
necessary agents employed in such
transportation;
(4)
the necessary caretakers, going and
returning, of livestock, poultry, fruit and
other freight under uniform and nondiscriminatory regulation;
(5)
employees of sleeping car corporations
and
telegraph
and
telephone
corporations, railway and marine mail
service employees when traveling in
their official duty;
(6)
post office inspectors, custom officers
and inspectors, and immigration
inspectors when engaged in inspection;
(7)
witnesses attending any legal
investigation in which public service is
an interested party;
(8)
persons injured in accidents or wrecks,
and physicians and nurses attending
such persons;
(9)
peace officers and men of regularly
constituted fire departments.
NOTES:
Rules relative to the extent of the power of
the PSC with regard to approval of the sale, alienation, or
mortgage of public service property:
1.
2.
3.
4.
5.
The approval by the Commission is discretionary.

The approval by the Commission may be given before
or after the consummation of the alienation in
question. If the approval takes place after the transfer,
the effect thereof is or may be retroactive.
The PSC has also jurisdiction to approve the sale of
Certificate of Public Convenience under receivership
as well as the assigned made by the purchaser of his
rights to such certificates to authorize an appellee to
operate the transportation lines covered thereby.
Certificates of Public Convenience are included in the
term property- thus- it is liable to execution.
In case of sale of CPC the approval of the PSC is
NOT a mere formality that could be dispensed with or
taken for granted.
1.
2.
3.
4.
5.
Since a franchise is personal in nature, any

transfer or lease thereof should be notified
to the PSC so that the latter may take
proper safeguards to protect the interest of
the public.
PSC not the courts, proper place to obtain
conveyance of certificate and thresh out
rights of parties in sale thereof.
Pendency in court pf validity of transfer of
franchise does not deprive PSC of power to
approve transfer thereof.
PSC has power to approve or disapprove
sale even of Certificates under judicial
attachment.
PSC has power to approve or disapprove
sale even of certificate subject of pending
cancellation proceedings in PSC.
Court rulings as to the procedure for obtaining

approval.
Under par g of Section 20, the approval required
shall be given after notice to the public and after
hearing the persons interested at a public
hearing;
As to notice, it has been held that notice of sale
by publication is sufficient.
As to persons who may oppose the approval, it
has been held that a party not affected by the
sale cannot legally oppose it.
The requirement regarding publication of the sale
of the certificate of public convenience only refers
to an application for the final approval of a deed
of sale and to an ex parte petition for provisional
approval, and the memorandum order of the
Commission only refers to the ale of temporary
certificates of 5 to 10 years life and not to those
issued for a normal life of 25 years;
Moreover, the requirement regarding publication
contained in the memorandum order is merely
directory which can be waived by the
Commission if it finds good reasons for doing as
to promote public interest.
PENALTIES FOR VIOLATIONS
Section 21.
The Commission has the power to impose FINES not
exceeding P200.00 per day for every day during which such
default or violation continues which fine can be impose only
AFTER DUE NOTICE AND HEARING.
Effect if fine is not paid?
FAILURE to pay the FINE shall be DEEMED GOOD
AND SUFFICIENT REASON FOR THE SUSPENSION OF THE
CERTIFICATE OF SAID PUBLIC SERVICE UNTIL PAYMENT
SHALL BE MADE.
NOTES:
Where the PSC is empowered by

franchise of operator only to fix the rates
it has no authority to impose fines on
said holder of franchise.
In order that a respondent public service
may be held criminally liable the act
20
committed by it must be expressly

prohibited. In the absence of said
express prohibition the holder of the
franchise cannot be held criminally
liable.
Section 22.
Observance of the orders, decisions, and regulations
of the Commission and of the terms and conditions of any
certificate may also be enforced by mandamus or injunction in
appropriate cases. PROVIDED, that the Commission may
compromise any case that may arise under this Act in such
manner and for such amount as it may deem just and
reasonable.
NOTES:
1.
2.
3.
4.
5.
6.
The RTC has concurrent jurisdiction with the

Commission over cases of an operator
violating his or its certificate.
However, the filing of the case before the
Commission must not be premature.
RTC may grant an injunction against public
service operators;
RTC may grant the injunction against a public
service without authority to operate.
The disobedience to an order of a court
forbidding a pubic service company to collect
a fare less than that authorized by the PSC
constitutes criminal contempt.
RTC may issue mandatory injunction to
compel an operator to furnish service.
Cases where the RTC cannot grant injunctions:

1. The RTC cannot issue injunctions against the orders
of the Commission.
2. The RTC cannot enjoin an operator from doing what
the Commission has authorized.
That for operating a private passenger

automobile as a public service without having a
certificate of public convenience for the same the
offender shall be subject to the penalties provided for
in Section 67 (j) of Act 3992.
NOTE:
A person permitting his privately owned and
registered car to be used for hire is punishable under
this Section.
Section 25.
Any person who shall knowingly and willfully neglect,
fail or omit to do or perform or who shall knowingly and willfully
cause or join or participate with others in causing any public
service corporation or company to neglect, fail or omit to do or
perform xxx shall be PUNISHED
a. a fine NOT exceeding P2,000.00; or
b. Imprisonment NOT exceeding 2 years;
or
c. BOTH in the discretion of the court.
Section 26.
Any person who shall destroy, injure, or interfere with
any apparatus or appliance owned or operated by or in charge
of the Commission or its agents, shall be deemed guilty of a
misdemeanor and upon conviction shall be PUNISHED
b. Imprisonment NOT exceeding 6
months; or
Section 27.
The Act shall NOT have the effect to release or waive
any right of action by the Commission or by any person xxx.
Section 23.
Any public service corporation that shall:
a. perform, commit, or do any act or thing
forbidden or prohibited; or
b. shall neglect fail or omit to do or
perform any act or thing herein to be
done or performed
SHALL BE PUNISHED:
b. Imprisonment NOT exceeding 5 years;
or
Section 28.
Violations of the orders, decisions, and regulations of
the Commission and of the terms and conditions of any
certificate issued by the Commission shall prescribe after 60
days and violations of the provisions of this Act shall prescribed
after 180 days.
Section 24.
Any public service person shall:
a. perform, commit, or do any act or thing
forbidden or prohibited; or
c. shall neglect fail or omit to do or
perform any act or thing herein to be
done or performed SHALL BE
PUNISHED by
The period of prescription commences to run from the

day on which the crime is discovered by the offended party, the
authorities or their agents. The commencement of a criminal
action interrupts the running of the period of prescription.
a.
b.
c.
PROVIDED:
a fine NOT exceeding P2,000.00; or

Imprisonment NOT exceeding 2 years;
or
BOTH in the discretion of the court.
NOTES:
*Prescription of crime.
The 60 day prescription period under Section 26 of the

Public Service Law is available defense only in criminal or penal
proceedings.
PROCEDURE AND REVIEW
Section 29.
All hearings and investigations before the Commission
shall be governed by rules adopted by the Commission and in
21
the conduct thereof the Commission shall not be bound by the
technical rules of legal evidence:
PROVIDED: That the Public Service Commissioner
may summarily punish any person who is guilty of misconduct in
the presence of the presence of the Commissioner for
CONTEMPT:
1.
A public service is entitled to notice as to the charges

against it, and to have an opportunity to answer such
charge and to defend itself against it.
2.
A party affected by an order amending a certificate is

entitled to a notice.
3.
An interested party who is not given notice is not bound by

the decision.
4.
In certain cases, a defect in the order of a publication for a

certificate of public convenience will not vitiate the
certificate.
5.
Notice of hearing may however be waived.
6.
Where personal notice is required by the notice of hearing

by the notice of hearing itself, failure to do so vitiates
decision not withstanding publication of notice.
PENALTY: FINE not exceeding P200.00 or for

IMPRISONMENT not exceeding 10 days or BOTH.
To enforce the provisions of this Section, the
Commission may, if necessary request the assistance of the
MUNICIPAL POLICE for the execution of any order made for
said purpose.
NOTES:
The Rules of Court is suppletory to the rules of the

Commission.
COURT RULINGS AS TO RECEPTION OF EVIDENCE.

1.
The Commission cannot dismiss a case provisionally

without receiving evidence.
2.
The report of an inspector of the Commission must be

made before the Court and subjected to cross examination.
3.
The Commission in the exercise of its quasi-judicial and

administrative functions.
4.
Reception of evidence may be delegated to the Chief

Attorney of the Commission or an assistant to a
Commissioner.
5.
The parties must be given opportunity to present their

evidence.
6.
The Commission may also bake notice of certain facts.
COURT RULINGS AS TO PARTIES.

1.
While the Commission is authorized to make rules for the

conduct of their business, it could not seat at naught the
fundamental rule of all proceedings that only parties having
a real interest will be heard.
2.
A party NOT affected or prejudiced cannot file an

opposition.
3.
One public service corporation cannot assume the name

and be substituted in the place of another public service
corporation.
4.
A legal representative of the estate of the deceased

applicant may be substituted for the latter.
5.
One who has been granted a legislative franchise to

operate an ice plant, although not yet an operator of such
public utility.
6.
The fact that a party is the lessee of a line does not bar him
from applying for a certificate of its own in the same line.
7.
A case involving the grant of Certificate of Public

Convenience to the respondent becomes moot and
academic where the respondent ceases to be a bus
operator, and it should be dismissed.
8.
The PSC has no authority to authorize one corporation to

assume the name of another.
COURT RULINGS AS TO NOTICE.
Court rulings as to requirements of publication of

application for hearing.
1.
Among the rules adopted by the PSC is that which requires

that the order setting an application for hearing be
published in two newspapers of general circulation at least
10 days prior to the date of the hearing.
2.
But where the corresponding notice of the application was

published and served upon the parties and the application
was amended by reducing the same line applied for, the
failure to publish notice of the amendment cannot possibly
impair the rights of any operator or affect the jurisdiction of
the PSC to entertain the petition as amended and to grant
the same.
3.
The rules of procedure in the Commission require an

applicant for a certificate to operate a bus or TPU autotruck service to publish in two newspapers of general
circulation the order setting his application for hearing and
in addition to sent by registered mail copy of the application
and the order of hearing to all operators who may be
22
affected thereby as appearing in the list furnished by the
Commission.
1.
The Commission may issue subpoena and subpoena

duces tecum, for witnesses in any manner or inquiry
pending before the Commission and require the
production of books, papers, tariffs, contracts,
agreements, and all other documents which the
Commission may deem necessary in any proceeding.
2.
Any person who shall neglect or refuse to answer

lawful inquiry or produce before the Commission
books, papers, tariffs, contracts, agreements, and all
other documents; or to answer any lawful inquiry shall
be punished by a fine not exceeding P5,000.00 or by
imprisonment not exceeding 1 year, or both, in the
discretion of the court.
3.
The Commissioner and associate commissioners, the

chiefs of divisions, the attorneys of the Commission,
and the deputy secretaries shall have the power to
administer oaths in all matters under the jurisdiction of
the Commission.
4.
Any person who shall testify falsely or make any false

affidavit or oath before the Commission or before any
of its members shall be guilty of perjury, and upon
conviction thereof in a court of competent jurisdiction,
shall be punished as provided by law.
5.
Witnesses appearing before the Commission in

obedience to subpoena or subpoena duces tecum,
shall be entitled to receive the same fees and mileage
allowance as witnesses attending RTC civil cases.
6.
Any person who shall obstruct the Commission or

either of the Commissioners while engaged in the
discharge of official duties or who shall conduct
himself in a rude, disorderly or disrespectful manner
before the Commission upon conviction of the same
shall be punished for EACH offense by a FINE not
exceeding P1,000.00 or by IMPRISONMENT not
exceeding 6 months, or BOTH in the discretion of the
court.
Court rulings as to PSC decision.

1.
A decision of the Commission must have some evidence to

support it.
2.
But a finding of fact is not necessary for the validity of the

Commissions decisions.
3.
A decision of the Commission must be based on conditions

at the time of hearing or decision.
4.
A decision of the Commission cannot include in a certificate

a line excluded during the hearing.
5.
There is no time fixed for the Commission within which to

render its decisions.
6.
And the fact that the decision was rendered before the filing
of the memorandum of the parties is no ground for its
reversal.
7.
Unless actually without basis, the interpretation based upon

its orders by the PSC should not be disturbed by the
Supreme Court.
8.
PSC is empowered to approve provisional rates of utilities

without prior hearing.
9.
Law confines in administrative office questions of facts,

jurisdictions of such office over the Courts.
Contempt Proceedings
Under Section 29 the Commission may summarily punish

a person for direct contempt but not for indirect contempt
at least insofar as their jurisdiction over public services is
concerned.
Direct Contempt
- Direct contempt may consists in:
1.
2.
misconduct in the presence of the Commissioners or so

near them as to interrupt the hearing or session or any
proceedings before them;
refusal to be sworn as a witness or to answer as such
when lawfully required to do so.
Indirect Contempt
- Indirect contempt may consists of:
Section 31.
No person shall be excused from a subpoena or
subpoena duces tecum issued by the Commission EXCEPT
when the testimony or evidence required of him may tend to
incriminate him.
Without the consent of the interested party NO
member or employee of the Commission shall be compelled or
permitted to give testimony in any civil suit to which the
Commission is not a party, with regard to secrets obtained by
him in the discharge of his official duty.
Section 32.
1.
failure to obey a subpoena issued by the Commission

requiring the attendance and testimony of a witness of the
production of necessary books, papers and documents,
The Commission is also allowed to take deposition of

witnesses who are residing within or without the Philippines to
be taken in the manner prescribed by the Rules of Court.
2.
refusal to comply with any order or decision lawfully

entered by the Commission.
(See: Deposition of Witnesses - Rules 23 to 29 1997 Rules

on Civil Procedure).
Section 30.
Section 33.
23
Every order made by the Commission shall be served
upon the person or public service affected thereby, within 10
days from the time said order is filed by personal delivery or by
ordinary mail, upon the attorney of record or in case there be no
attorney of record, upon the party interested; and in case such
certified copy is sent by registered mail, the registry mail receipt
shall be the prima facie evidence of the receipt of such order by
the public service in due course of mail.
Section 34.
Any interested party may request the reconsideration
of any order, ruling, or decision of the Commission by means of
a petition filed not later than 15 days after the date of the notice
of the order, ruling, or decision in question.
2.
Petition for Certiorari see Rule 65, Rules of

Court
N.B.
RTC not the CA has jurisdiction
over actions to annul
orders of the Commission because even the above
mentioned remedies was indicated to be available only to
the SC still you need to follow the Rules on Hierarchy of
Courts which provides that Petition for Review or on
Certiorari shall first be filed before the RTC, to CA and then
to SC.
As a rule, Court does not interfere with

administrative action prior to its
completion and finality.
Construction given by an administrative

agency possessed of the necessary
special knowledge, expertise and
experience deserves great weight and
respect, term radiotelephony includes
cellular phones. (PLDT v. NTC, 190 SCRA
717).
NOTES:
Limitation on Commissions power to order rehearing.
A rehearing cannot be granted by the PSC
for the reconsideration of a question which has been
decided by the SC on appeal to that tribunal.
While the Commission is given wide power
to grant rehearing, a distinction must be made
between those orders that remain entirely within the
powers of the Commission and those orders which are
brought to the SC for review and final decision.
Motion must be based on facts.
The right to be heard and present evidence
in support of the allegations, contained in his motion of
intervention, naturally follows, provided the motion for
intervention or reconsideration state facts sufficient to
justify a reconsideration of the questioned order and
the granting of a new hearing.
Section 35.
The Supreme Court is hereby given jurisdiction to
review any order, ruling or decision of the Commission and to
modify or set aside such order, ruling or decision when it clearly
appears that there is no evidence before the Commission to
support reasonably such order, ruling, or decision, or that the
same is contrary to law, or that it was without jurisdiction of the
Commission.
NOTES:
An unverified Motion for Reconsideration
containing generalities cannot justify setting aside of a
decision handed down in response to a clear public
need, where there is evidence that the buses operated
by the movant cannot accommodate all the
passengers on those lines.
Remedies to set aside order of Commission.
There are only two remedies available in the Supreme Court
to set aside an order of the Public Service Commission.
1.
Petition for review see Rule 45, Rules of Court
Section 36.
Any order, ruling, or decision of the Commission may
be reviewed on the application of any person or public service
may be reviewed on the application of any person or public
service affected thereby, by certiorari in appropriate cases, or by
petition to be known as petition for review, which shall be filed
within 30 days from the notification of such order, ruling or
decision.
NOTES:
The rule on the 15 day and 30 day period
is the same in the Energy Regulatory Period. But
as to the LTFRB and the NTC the period within
which appeal may be made is within 30 days from
notice.
As to the National Water Resources
Council now Board- appeals to the RTC must be
made within 15 days from the date the party
appealing receives a copy of the decision.
As to the Maritime Industry Authority appeal may
be made within 30 days from notice.
Petition for review filed seven (7) months

after receipt of notice of denial is considered
to have been filed out of time.
Objections not raised in the Commission

cannot be raised on appeal.
Compromise agreement of parties bars

certiorari or review.
Motion for reconsideration not a condition

precedent for appeal.
24
If the petitioner shows lack of interest in the

case the petitioner has no standing in the
Court, and his petition for review of an order
of the PSC must be dismissed with costs.
Section 37.
The institution of a writ of certiorari or other special
remedies in the Supreme Court shall in no case supersede the
Supreme Court shall so direct, and the appellant may be
required by the Supreme Court to give bond in such form and of
such amount as may be deemed proper.
Section 38.
The Chief of the legal division or any other attorneys
of the Commission shall represent the same in all judicial
proceedings. It shall be the duty of the Sol Gen to represent the
Commission in any judicial proceedings if, for special reason,
the Commissioner shall request his intervention.
Section 39.
Any proceeding in any court of the Philippines directly
affecting an order of the Commission or to which the
Commission is a party, shall have preference over all other civil
proceedings pending in such court, EXCEPT election case.
CONVENTION FOR HE UNIFICATION OF CERTAIN

RULES RELATING TO INTERNATIONAL
CARRIAGE BY AIR, SIGNED AT WARSAW ON
OCT. 12 1929 (WARSAW CONVENTION)
I)
Scope
This Convention applies to all international carriage of

persons, luggage, or goods performed by aircraft for reward. It
applies equally to gratuitous carriage by aircraft performed by an
air transport undertaking.
>This also applies to carriage performed by the State or by
legally constituted public bodies provided it complies with the
condition of the above stated.
>This does not apply however to carriage performed under the
terms of any international postal convention.
International carriage: means any carriage in which
according to the contract made by the parties, the place of
departure and the place of destination, whether or not situated
either within he territories of two High Contracting parties, or
within the territory of a single High Contracting party, if there in
agreed stopping place within the territory subject to the to the
laws of the state.
>A carriage without such agreed stopping place between

territories subject to he law of the contracting parties is not
deemed to be international for the purposes of this act.
A carriage to be performed by several successive air
carriers is deemed, for the purpose of this act to be one
undivided carriage, if it has been regarded by the parties as a
single operation, whether it had been agreed upon under the
form of a single contract or of a series of contract.
II)
Documents of carriage
A) Passenger ticket
For the carriage of passenger the carrier must deliver a
passenger ticket which shall include the place and date of issue,
destination and date of departure, agreed stopping place, and
the liability or the carrier under international law.
>The absence, irregularity, or loss of the passenger ticket does
not affect the existence and the validity of the contract.
>Should the carrier accept passenger without ticket, the carrier
cannot avail of the provision of this Convention to exclude or
limit his liability.
B) Luggage ticket
For the carriage of luggage, other than small personal
objects of which the passenger takes charge himself, the carrier
must issue a luggage ticket. which shall be in duplicate, one part
for the passenger and the other for the carrier.
>The absence, irregularity, or loss of the luggage ticket
does not affect the validity of the contract unless in case the
carrier did not deliver a ticket, or the ticket did not contain the
statement of the number and weight of the luggage and the
statement that the carriage is subject to the rules relating to
liability established by this convention, the carrier cannot avail of
the provision of the convention limiting his liability.
C) Air consignment note
Every carrier of goods has the right to require the consignor
to make out and deliver to him an Air consignment note
And every consignor has the right to require the carrier to
accept this document.
>The absence or irregularity or loss of this note shall not
affect the validity and existence of the contract. Provided
that if the carrier accepts goods without the air
consignment note or the particulars such as the place of
destination, name and address of the consignee, apparent
condition of the goods quantity and volume of the goods,
the carrier cannot avail of the provision limiting his liability
in case of a loss or damage top the goods.
> The air consignment note is prima pacie evidence of the
conclusion of the contract, of the receipt of the goods and
of the condition of carriage.
D) Rights of the consignor
1)
2)
Consignor is responsible for the correctness of the

particulars of the goods
Liable for damage suffered by the carrier or any other
person by reason of the irregularity, incorrectness, or
incompleteness of the said particulars and statements.
25
3)

Right of stoppage or to withdraw the goods at the

aerodrome of departure or destination or to be
delivered to other person other than the consignee.
>If it is impossible to carry out the orders of the consignor the

carrier must inform him of such impossibility.
> If it involves the disposition of the goods the carrier must
demand the consignment note, otherwise the carrier is liable to
the consignee or to anyone in possession of the goods in case
of damage to the goods.
>The right of the consignor ceases at the moment the consignee
received the goods.
E) Right of the consignee
1) To deliver to him the goods upon arrival at the place of the
destination.
2) To deliver to him the consignment note
3) To be given notice of the arrival of the goods.
4) Right to enforce liability against the carrier in case of loss.
F) Liability of the carrier
1) Liable for damage in the event of death or wounding of
passenger or any other bodily injury if the injury or damage
take place on board or in the course of the operation of
2) To damages if the goods were damaged during the
carriage by air.
>The period of carriage does not extend to carriage by land or
by sea except if the carriage by land is for the purpose of
loading, delivery, transshipment, any damage is presumed to
have been the result of an event which took place during the
carriage by air.
3) Liable for damage in case of delay in the carriage of the
goods or luggage.
F)
1)
2)
3)
G)
1)
2)
3)
4)
5)
Carrier is not liable.

If the carrier act with necessary measure to avoid the
damage
If the carrier proves that the damage loss was due to
negligence in the handling of the aircraft or pilotage.
May be exonerated wholly or partially if carrier proves
contributory negligence on the part of the injured person.
The carrier cannot avail of the provision of this convention
in limiting or excluding him from any liability if the damage
was caused by the willful misconduct on his part.
Carrier is not entitled to the provision limiting his liability if
the damage was caused by the agent of the carrier acting
within the scope of his employment.
Venue of action.
RTC where the business of the carrier is located
RTC of the place where the contract was made
Court of the place of destination
Court of the place of departure
Court where the place has stopped over
H) Presciption of action.
Within two (2) years from the date of arrival at the
destination, or from the time the aircraft ought to have arrived, or
from the time the carrier was stopped.

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1

COMMERCIAL LAW REVIEWER

SOME VALID STIPULATIONS LIMITING CARRIER'S

otherwise however as an exception, parties may stipulate

Common Carrier is liable for damages for defects of its

COMMERCIAL LAW REVIEWER

For fixed indemnity for death, there is no need to interrogate

COMMERCIAL LAW REVIEWER

SAINT LOUIS UNIVERSITY BAR OPERATIONS

OVER LAND TRASPORTATION

The NCC does not expressly repeal the provisions of

Bill of Lading, Defined

Written acknowledgement of receipt of goods and

Legal effect of the Issuance of Bill of Lading

Right to refuse packages

Time for delivery of goods

The filing of claim is a condition

If the claim is filed, but the carrier

Within 6 years, if no bill of

Within 10 years, if a bill

Exemption from liability of the common carrier

VESSELS (in general)

COMMERCIAL LAW REVIEWER

MERCHANT VESSELS- engaged in the transportation of

COMMERCIAL LAW REVIEWER

of vessels or after the return, so as to prevent the

COMMERCIAL LAW REVIEWER

damage caused to the vessel or to its cargo through

SAINT LOUIS UNIVERSITY BAR OPERATIONS

10. comply with the requirements of customs, health, etc. at the

Sailing mate/First mate

COMMERCIAL LAW REVIEWER

provide himself with maps, and charts with

preserve the hull and rigging of the vessel

Members of the Crew

CLASSES OF SEAMAN'S CONTRACT:

SAINT LOUIS UNIVERSITY BAR OPERATIONS

RULES IN CASE OF DEATH OF A SEAMAN:

if death is due to defense of vessel- full payment

if captured in defense of vessel- full payment

if captured due to carelessness- wages up to the date of

NO LIABILY UNDER THE FOLLOWING CIRCUMSTANCES:

If before beginning voyage, captain attempts to change it or

COMPLEMENT OF THE VESSEL

COMMERCIAL LAW REVIEWER

contract by virtue of which the owner or agent binds himself

SAINT LOUIS UNIVERSITY BAR OPERATIONS

CLASSES OF CHARTER PARTY

FORMAILITIES REQUIRED FOR A CHARTER PARTY:

RESCISSION OF CHARTER PARTY

At ship owners request

COMMERCIAL LAW REVIEWER

SAINT LOUIS UNIVERSITY BAR OPERATIONS

ORDER OF GOODS TO BE CAST OVERBOARD IN CASE OF

Extraordinary diligence is required to common carriers in

Arrival Under stress

CIRCUMSTANCES UNDER WHICH COMMON CARRIERES

Air carriers can terminate services of pilots for serious

ZONES OF TIME IN COLLISION OF VESSELS:

INSTANCES WHICH ARE NOT CASO FORTUITO:

CASES COVERED BY COLLISION AND ALLISION:

Fire is not a natural disaster

SOME VALID STIPULATIONS LIMITING CARRIER'S

COMMERCIAL LAW REVIEWER