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Problem:
Without checking her travel documents, Estela went to NAIA on Saturday, to take
the flight for the first leg of her journey from Manila to Hongkong. She discovered
that the flight she was supposed to take had already departed the previous day. She
learned that her plane ticket was for the flight scheduled on June 14, 1991. She thus
called up Menor to complain.
Subsequently, Menor prevailed upon Estela to take another tour the "British
Pageant, which cost P20, 881.00. She gave caravan travel and tours P7, 980.00 as
partial payment and commenced the trip in July 1991.
Upon petitioners return from Europe, she demanded from respondent the
reimbursement of P61, 421.70, representing the difference between the sum she
paid for "Jewels of Europe" and the amount she owed respondent for the "British
Pageant" tour. Despite several demands, respondent company refused to reimburse
the amount, contending that the same was non-refundable.
Estela filed a complaint against Caravan travel and Tours for breach of contract of
carriage and damages.
Answer:
From the above definition, Caravan Travel and Tours is not an entity engaged in the
business of transporting either passengers or goods and is therefore, neither a
private nor a common carrier. Caravan Travel and Tours did not undertake to
transport Estela from one place to another since its covenant with its customers is
simply to make travel arrangements in their behalf. Caravan travel and tours
services as a travel agency include procuring tickets and facilitating travel permits
or visas as well as booking customers for tours.
While Estela concededly bought her plane ticket through the efforts of respondent
company, this does not mean that the latter ipso facto is a common carrier. At most,
Caravan Travel and Tours acted merely as an agent of the airline, with whom the
former ultimately contracted for her carriage to Europe.
B) No.
The negligence of the obligor in the performance of the obligation renders him liable
for damages for the resulting loss suffered by the obligee. Fault or negligence of the
obligor consists in his failure to exercise due care and prudence in the performance
of the obligation as the nature of the obligation so demands.
In the case at bar, Caravan Travel and Tours exercised due diligence in performing
its obligations under the contract and followed standard procedure in rendering its
services to Estela. The plane ticket issued to petitioner clearly reflected the
departure date and time, contrary to Estelas contention. The travel documents,
consisting of the tour itinerary, vouchers and instructions, were likewise delivered to
her two days prior to the trip. The Caravan Travel and Tours also properly booked
Estela for the tour, prepared the necessary documents and procured the plane
tickets. It arranged Estelas hotel accommodation as well as food, land transfers and
sightseeing excursions, in accordance with its avowed undertaking.
From the foregoing, it is clear that the Caravan Travel and Tours performed its
prestation under the contract as well as everything else that was essential to book
Estela for the tour.
Hence, Estela cannot recover and must bear her own damage.
First Philippine Industrial Corp. vs. CA
Facts:
Petitioner is a grantee of a pipeline concession under Republic Act No. 387.
Sometime in January 1995, petitioner applied for mayors permit in Batangas.
However, the Treasurer required petitioner to pay a local tax based on gross receipts
amounting to P956,076.04. In order not to hamper its operations, petitioner paid the
taxes for the first quarter of 1993 amounting to P239,019.01 under protest. On
January 20, 1994, petitioner filed a letter-protest to the City Treasurer, claiming that
it is exempt from local tax since it is engaged in transportation business. The
respondent City Treasurer denied the protest, thus, petitioner filed a complaint
before the Regional Trial Court of Batangas for tax refund. Respondents assert that
pipelines are not included in the term common carrier which refers solely to
ordinary carriers or motor vehicles. The trial court dismissed the complaint, and
such was affirmed by the Court of Appeals.
Issue:
Whether a pipeline business is included in the term common carrier so as to
entitle the petitioner to the exemption
Held:
Article 1732 of the Civil Code defines a "common carrier" as "any person,
corporation, firm or association engaged in the business of carrying or transporting
passengers or goods or both, by land, water, or air, for compensation, offering their
services to the public."
The test for determining whether a party is a common carrier of goods is:
(1) He must be engaged in the business of carrying goods for others as a public
employment, and must hold himself out as ready to engage in the transportation of
goods for person generally as a business and not as a casual occupation;
(2) He must undertake to carry goods of the kind to which his business is confined;
(3) He must undertake to carry by the method by which his business is conducted
and over his established roads; and
(4) The transportation must be for hire.
Based on the above definitions and requirements, there is no doubt that petitioner
is a common carrier. It is engaged in the business of transporting or carrying goods,
i.e. petroleum products, for hire as a public employment. It undertakes to carry for
all persons indifferently, that is, to all persons who choose to employ its services,
and transports the goods by land and for compensation. The fact that petitioner has
a limited clientele does not exclude it from the definition of a common carrier.
De Guzman v. CA
Facts:
Respondent Ernesto Cendana was a junk dealer. He buys scrap materials and brings
those that he gathered to Manila for resale using 2 six-wheeler trucks. On the return
trip to Pangasinan, respondent would load his vehicle with cargo which various
merchants wanted delivered, charging fee lower than the commercial rates.
Sometime in November 1970, petitioner Pedro de Guzman contracted with
respondent for the delivery of 750 cartons of Liberty Milk. On December 1, 1970,
respondent loaded the cargo. Only 150 boxes were delivered to petitioner because
the truck carrying the boxes was hijacked along the way. Petitioner commenced an
action claiming the value of the lost merchandise. Petitioner argues that
respondent, being a common carrier, is bound to exercise extraordinary diligence,
which it failed to do. Private respondent denied that he was a common carrier, and
so he could not be held liable for force majeure. The trial court ruled against the
respondent, but such was reversed by the Court of Appeals.
Issues:
(1) Whether or not private respondent is a common carrier
(2) Whether private respondent is liable for the loss of the goods
Held:
(1) Article 1732 makes no distinction between one whose principal business activity
is the carrying of persons or goods or both, and one who does such carrying only as
an ancillary activity. Article 1732 also carefully avoids making any distinction
between a person or enterprise offering transportation service on a regular or
scheduled basis and one offering such service on an occasional, episodic or
unscheduled basis. Neither does Article 1732 distinguish between a carrier offering
its services to the "general public," i.e., the general community or population, and
one who offers services or solicits business only from a narrow segment of the
general population. It appears to the Court that private respondent is properly
characterized as a common carrier even though he merely "back-hauled" goods for
other merchants from Manila to Pangasinan, although such backhauling was done
on a periodic or occasional rather than regular or scheduled manner, and even
though private respondent's principal occupation was not the carriage of goods for
others. There is no dispute that private respondent charged his customers a fee for
hauling their goods; that fee frequently fell below commercial freight rates is not
relevant here. A certificate of public convenience is not a requisite for the incurring
of liability under the Civil Code provisions.
(2) Article 1734 establishes the general rule that common carriers are responsible
for the loss, destruction or deterioration of the goods which they carry, "unless the
same is due to any of the following causes only:
a. Flood, storm, earthquake, lightning, or other natural disaster or calamity;
b. Act of the public enemy in war, whether international or civil;
c. Act or omission of the shipper or owner of the goods;
d. The character of the goods or defects in the packing or in the containers; and
e. Order or act of competent public authority."
The hijacking of the carrier's truck - does not fall within any of the five (5)
categories of exempting causes listed in Article 1734. Private respondent as
common carrier is presumed to have been at fault or to have acted negligently. This
presumption, however, may be overthrown by proof of extraordinary diligence on
the part of private respondent. We believe and so hold that the limits of the duty of
extraordinary diligence in the vigilance over the goods carried are reached where
the goods are lost as a result of a robbery which is attended by "grave or irresistible
threat, violence or force." we hold that the occurrence of the loss must reasonably
be regarded as quite beyond the control of the common carrier and properly
regarded as a fortuitous event. It is necessary to recall that even common carriers
are not made absolute insurers against all risks of travel and of transport of goods,
and are not held liable for acts or events which cannot be foreseen or are inevitable,
provided that they shall have complied with the rigorous standard of extraordinary
diligence.
FACTS:
M At the time material to this case, Transorient Container Terminal Services, Inc.
(TCTSI) owned by Virgines Calvo entered into a contract with San Miguel Corporation
(SMC) for the transfer of 114 reels of semi-chemical fluting paper and 124 reels of
kraft liner board from the Port Area in Manila to SMC's warehouse at the Tabacalera
Compound, Romualdez St., Ermita, Manila.
M The cargo was insured by respondent UCPB General Insurance Co., Inc.
M July 14, 1990: arrived in Manila on board "M/V Hayakawa Maru" and later
on unloaded from the vessel to the custody of the arrastre operator, Manila Port
Services, Inc
M July 23 to July 25, 1990: Calvo withdrew the cargo from the arrastre operator
and delivered it to SMC's warehouse in Ermita, Manila
M July 25, 1990: goods were inspected by Marine Cargo Surveyors, who found
that 15 reels of the semi-chemical fluting paper were "wet/stained/torn" and 3 reels
of kraft liner board were likewise torn
M SMC collected payment from UCPB the total damage of P93,112 under its
insurance contract
M UCPB brought suit against Calvo as subrogee of SMC
M Calvo: Art. 1734(4) The character of the goods or defects in the
packing or in the containers
spoilage or wettage" took place while the goods were in the
custody of either the carrying vessel "M/V Hayakawa Maru," which transported the
cargo to Manila, or the arrastre operator, to whom the goods were unloaded and
who allegedly kept them in open air for 9 days notwithstanding the fact that some
of the containers were deformed, cracked, or otherwise damaged
M Trial Court: Calvo liable
M CA: affirmed
ISSUE: W/N Calvo can be exempted from liability under Art. 1734(4)
FACTS:
M February 15, 1981: First International Trading and General Services Co. (First
Int'l), a duly licensed domestic recruitment and placement agency, received a telex
message from its principal ROLACO Engineering and Contracting Services (ROLACO)
in Jeddah, Saudi Arabia to recruit Filipino contract workers in its behalf
M Early March 1981: ROLACO paid British Airways, Inc. (BA) Jeddah branch
the airfare tickets for 93 contract workers with specific instruction to transport the
workers to Jeddah on or before March 30, 1981
M As soon as BA received a prepaid ticket advice from its Jeddah branch
informed First Int'l.
Thereafter, First Int'l instructed ADB Travel and Tours. Inc. (its
travel agent) to book the 93 workers with BA but it failed
1 So First Int'l had to borrow P304,416.00 for
the purchase of airline tickets from the other airlines for
the 93 workers who must leave immediately since the
visas are valid only for 45 days and the Bureau of
Employment Services mandates that contract workers
must be sent to the job site within a period of 30 days
M First week of June, 1981: First Int'l was again informed by BA that it had
received a prepaid ticket advice from its Jeddah branch for the transportation of 27
contract workers.
M Immediately, First Int'l instructed its ADB to book the 27 contract
workers with the BA but only 16 seats were confirmed and booked on its June 9,
1981 flight.
M June 9, 1981: only 9 workers were able to board said flight while the
remaining 7 workers were rebooked to:
M June 30, 1981 - again cancelled by British without any prior notice to
either First Int'l or the workers
M July 4,1981 - (6 + 7 workers) 13 workers were again cancelled and rebooked
to July 7, 1981.
M July 6, 1981: First Int'l paid the travel tax of the workers as required
by BA but when the receipt of the tax payments was submitted, only 12 seats were
confirmed for July 7, 1981 flight
M July 7, 1981: Flight was again cancelled without any prior notice
M 12 workers were finally able to leave for Jeddah after First Int'l had bought
tickets from the other airlines
M As a result of these incidents, First Int'l sent a letter to BA demanding
compensation for the damages it had incurred by the repeated failure to transport
its contract workers despite confirmed bookings and payment of the corresponding
travel taxes.
M July 23, 1981: the counsel of First Int'l sent another letter to BA demanding
P350,000.00 damages and unrealized profit or income - denied
M August 8, 1981: First Int'l received a telex message from ROLACO cancelling
the hiring of the remaining recruited workers due to the delay in transporting the
workers to Jeddah.
M January 27, 1982: First Int'l filed a complaint for damages against First Int'l
M CA Affirmed RTC: BA to pay First Int'l damages, attorneys fees and costs
ISSUE: W/N BA is not liable because there was no contract of carriage as no ticket
was ever issued
Dangwa Transpo vs CA
G.R. No. 95582 October 7, 1991
Lessons Applicable: Actionable Document (Transportation)
Laws Applicable: Art. 1733, Art. 1755
FACTS:
M May 13, 1985: Theodore M. Lardizabal was driving a passenger bus belonging
to Dangwa Transportation Co. Inc. (Dangwa)
M The bus was at full stop bet. Bunkhouses 53 and 54 when Pedro
alighted
Pedro Cudiamat fell from the platform of the bus when it
suddenly accelerated forward
1 Pedro was ran over by the rear right tires of
the vehicle
M Theodore first brought his other passengers and cargo to their
respective destinations before bringing Pedro to Lepanto Hospital where he expired
M Private respondents filed a complaint for damages against Dangwa for the
death of Pedro Cudiamat
1 Dangwa: observed and continued to observe the
extraordinary diligence required in the operation of the co. and the
supervision of the employees even as they are not absolute insurers of
the public at large
M RTC: in favour of Dangwa holding Pedrito as negligent and his negligence was
the cause of his death but still ordered to pay in equity P 10,000 to the heirs of
Pedrito
M CA: reversed and ordered to pay Pedrito indemnity, moral damages, actual
and compensatory damages and cost of the suit
ISSUE: W/N Dangwa should be held liable for the negligence of its driver Theodore
FACTS:
Navidad was drunk when he entered the boarding platform of the LRT. He got into
an altercation with the SG Escartin. They had a fistfight and Navidad fell onto the
tracks and was killed when a train came and ran over him.
The Heirs of Navidad filed a complaint for damages against Escartin, the train
driver, (Roman) the LRTA, the Metro Transit Organization and Prudent Security
Agency (Prudent). The trial court found Prudent and Escartin jointly and severally
liable for damages to the heirs. The CA exonerated Prudent and instead held the
LRTA and the train driver Romero jointly and severally liable as well as removing the
award for compensatory damages and replacing it with nominal damages.
The reasoning of the CA was that a contract of carriage already existed between
Navidad and LRTA (by virtue of his havA ing purchased train tickets and the liability
was caused by the mere fact of Navidad's death after being hit by the train being
managed by the LRTA and operated by Roman. The CA also blamed LRTA for not
having presented expert evidence showing that the emergency brakes could not
have stopped the train on time.
ISSUES:
(1) Whether or not LRTA and/or Roman is liable for the death.
(2) Whether or not Escartin and/or Prudent are liable.
(3) Whether or not nominal damages may coexist with compensatory damages.
HELD:
(1) Yes. The foundation of LRTA's liability is the contract of carriage and its
obligation to indemnify the victim arising from the breach of that contract by reason
of its failure to exercise the high diligence required of a common carrier.
(2) Fault was not established. Liability will be based on Tort under Art. 2176 of the
New Civil Code.
(3) No. It is an established rule that nominal damages cannot co-exist with
compensatory damages.
RATIO:
Liability of LRTA Read Arts. 1755,1756, 1759 and 1763 of the New Civil Code
Art. 1763 renders a common carrier liable for death of or injury to passengers (a)
through the negligence or wilful acts of its employees or (b) on account of willful
acts or negligence of other passengers or of strangers if the common carriers
employees through theexercise of due diligence could have prevented or stopped
the act or omission. In case of such death or injury, a carrier is presumed to have
been at fault or been negligent, and by simple proof of injury, the passenger is
relieved of the duty to still establish the fault or negligence of the carrier or of its
employees and the burden shifts upon the carrier to prove that the injury is due to
an unforeseen event or to force majeure.