STUDY GUIDE ON TRANSPORTATION LAWS

I GENERAL CONSIDERATIONS
0.1 1.2 Transportation defined Applicable laws

II LAW
ON

COMMON CARRIERS
AND

Articles 1732-1766, Civil Code; Articles 349-379, Code of Commerce

COMMERCIAL CONTRACTS

OF

TRANSPORTATION OVERLAND

Articles 349-379, Code of Commerce

2.1

Topics Common carriers (Art. 1732, CC) and private carriers Arrastre, charter parties, customs brokers, and funeral parlors Diligence required of common carriers (Art. 1733, CC) Responsibility for loss, destruction or deterioration of goods shipped (Arts. 1734-1754, CC) Contract of carriage of goods Bills of lading Shipping arrangements, e.g., FOB, FAS, and CIF Combined transport services agreement (Art. 373, CoC) Obligations of carrier with respect to delivery of goods Rights and obligations of shipper and/or consignee of goods Right to refuse receipt of shipped goods (Arts. 363 and 365, CoC) Remedy in case of delay in delivery of shipped goods (Arts. 370 and 371, CoC) Right of abandonment (Arts. 365 and 371, CoC) Payment of freightage and carriers remedies for its collection (Arts. 375 and 376, CoC) Exemption of carrier from liability (Arts. 1734, 1739, 1740-1743, CC) Agreement to limit carriers liability (Arts. 1744-1752, CC) Responsibility for loss or destruction of passengers baggage Checked-in luggage (Arts. 1733-1753, CC) Hand-carried luggage (Arts. 1998 and 2000-2003, CC) Responsibility for safety of passengers (Arts. 1755-1763, CC) Contract of carriage of passengers Culpa contractual, culpa aquiliana, and culpa criminal Limitation on liability of carrier (Arts. 1760 and 1761, CC) Fortuitous event Contributory negligence (Art. 1762) Doctrine of last clear chance Death of, or injury to, passengers caused by carriers employees (Art. 1759, CC) Death of, or injury to, passengers caused by co-passengers and strangers (Art. 1763, CC) Damages recoverable from common carriers (Arts. 1764 and 2006, CC) Indemnity for death and loss of earning capacity Support and moral damages Attorneys fees, expenses of litigation, and interest in proper cases

2.2

Cases Common carriers

Prepared by Prof. Tristan A. Catindig as of May 24, 2010. All rights reserved. 1 of 6

(a) (b) (c) (d) (e) (f) (g)

De Guzman vs. CA, 168 SCRA 612 [1988]; First Philippine Industrial Corp. vs. CA, et al., G.R. 125948, December 29, 1998; Calvo vs. UCPB General Insurance, G.R. 148496, March 19, 2002 (see also A.F. Sanchez Brokerage vs. CA, et al., G.R. 147079, December 21, 2004); Schmitz Transport & Brokerage vs. Transport Venture, et al., G.R. 150255, April 22, 2005; Philippine Charter Insurance vs. Unknown Owner of the Vessel M/V National Honor, et al., G.R. 161833, July 8, 2005; Lea Mer Industries vs. Malayan Insurance, G.R. 161745, September 30, 2005; Cebu Salvage vs. Philippine Home Assurance, G.R. 150403, January 25, 2007.

Charter parties (a) (b) (c) Planters Products vs. CA, 226 SCRA 476 [1993]; Coastwise Lighterage vs. CA, G.R. 114167, July 12, 1995; Valenzuela Hardwood vs. CA, et al., G.R. 102316, June 30, 1997; (a) Caltex (Philippines), Inc. vs. CA, et al., G.R. 131166, September 30, 1999. Breach of contract of carriage: vigilance over goods

(a) Belgian Overseas Chartering, et al. vs. Philippine First Insurance, G.R. 143133, June 5,
2002;

(b) FGU Insurance vs. CA, et al., G.R. 137775, March 31, 2005; (c) Sulpicio Lines vs. First Lepanto-Taisho Insurance, G.R. 140349, June 29, 2005; (d) Delsan Transport Lines vs. American Home Assurance, G.R. 149019, August 15, 2006.
Breach of contract of carriage: safety of passengers

(a) (b)

Calalas vs. CA, et al., G.R. 122039, May 31, 2000; PAL vs. CA, et al., G.R. 123238, September 22, 2008

Notice of claim Philippine Charter Insurance vs. Chemoil, G.R. 136888, June 29, 2005. Contributory negligence; the 80-20 ratio Estacion vs. Bernardo, et al., G.R. 144723, February 27, 2006. Joint liability of carrier and arrastre operator Eastern Shipping Lines vs. CA, 234 SCRA 78 [1994]. Arrastre vs. stevedore Mindanao Terminal and Brokerage Service, Inc. vs. Phoenix Assurance, et al. G.R. 162467, May 8, 2009. Liability to boarding and alighting passengers Dangwa Transportation Co. vs. CA, et al., G.R. 95582, October 7, 1991. Overtaking; doctrine of last clear chance (a) (b) Engada vs. CA, G.R. 140698, June 20, 2003; Lapanday vs. Angala, et al. G.R. 153076, June 21, 2007.

Contributory negligence; force majeure (a)

(b)

Fortune Express, inc. vs. CA, et al., G.R. 119756, March 18, 1999; Japan Airlines vs. CA, et al., G.R. 118664, August 7, 1998.

Involuntary upgrading Cathay Pacific vs. Spouses Vasquez, G.R. 150843, March 14, 2003.
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III CONVENTION
FOR THE

UNIFICATION OF CERTAIN RULES RELATING TO INTERNATIONAL C A R R I A G E B Y A I R (W A R S A W C O N V E N T I O N )

Signed at Warsaw on October 12, 1929, as amended by the Hague Protocol done at The Hague on September 28, 1955 and as supplemented by the Convention Supplementary to the Warsaw Convention signed in Guadalajara on September 18, 1961

3.1

Topics Construction of the Warsaw Convention Meaning of international transportation Venue of action for violation of a contract of international transportation by air

3.2

Cases Meaning of international transportation Mapa, et al. vs. CA, et al., G.R. 122308, July 8, 1997 Venue of action for violation of a contract of international transportation by air Santos III vs. Northwest Orient Airlines, G.R. 101538, June 23, 1992 Bumped off passenger; misplaced and lost baggage (a) (b) Pan American World Airways vs. Rapadas, 209 SCRA 67 [1992]; Cathay Pacific vs. CA, 219 SCRA 520 [1993]; Lufthansa vs. CA, G.R. 83612, November 24, 1994; British Airways vs. CA, G.R. 121824, January 29, 1998.

(c) (d)

Non-use of original contracted route; notice of loss Savellano, et al. vs. Northwest Airlines, G.R. 151783, July 8, 2003. Applicability of periods of prescription provided in Article 29 of the Warsaw Convention and Article 1146 of the Civil Code Philippine Airlines vs. Savillo, et al., G.R. 149547, July 4, 2008

IV MARITIME COMMERCE
Articles 573-736, 806-845, Code of Commerce

4.1

Topics Participants in maritime commerce Shipowner (Arts. 586, 588, 590, CoC) Ship agent (Arts. 586-588, 595-598, 602, 604, and 605, CoC) Complement of a vessel (Art. 648, CoC) Captain, master or patron (Art. 609-612, 614,615, 617, 618, and 624, CoC) Sailing or first mate (Art, 627, CoC) Second mate (Art, 627, CoC) Engineer (Art. 632, CoC) Crew (Arts. 635-637, CoC) Books to be kept (Arts. 612[3], 629, and 632[6], CoC) Supercargo (Arts. 649, and 651, CoC) Ship husband Pilot
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Limited liability rule or the real and hypothecary nature of maritime law (Arts. 587, 590 and 837, CoC) Risks, damages and accidents of maritime commerce Petty and ordinary expenses (Art. 807, CoC) Averages (Art. 808, CoC) As to nature (Art. 806, CoC) Extraordinary or accidental expenses Damages or deteriorations As to classes (Art. 808, CoC) Simple or particular (Art. 809, CoC) General or gross (Art. 811, CoC) Procedure for incurring general average (Arts. 813-815, CoC) Adjustment, liquidation and distribution of general average (Arts. 846-848, 850, and 865-867, CoC) Arrivals under stress or arribadas forzosas (Arts. 819-821 and 825, CoC) Collisions or abordajes Rules on collision (Arts. 826-833, CoC) Protests (Arts. 835 and 836, CoC) Shipwrecks or naufragios (Arts. 840-842, CoC) Special contracts of maritime commerce Charter party or contrato de fletamento Contract of affreightment Bareboat or demise Bill of lading or conocimiento de embarque Loans on bottomry and respondentia (Arts. 719, 721, 725, 730, 731, and 733, CoC) Distinguished from ordinary loans Persons who may incur loans Marine insurance Some other terms worth noting Barratry Demurrage Derelicts Lay days Primage 4.2 Cases Duties of a captain Inter-Orient Maritime Enterprises, et al. vs. NLRC, G.R. 115286, August 11, 1994. Duties of a pilot Far Eastern Shipping vs. CA and PPA, G.R. 130068, October 1, 1998. Maritime contracts; maritime liens Crescent Petroleum, Ltd. vs. M/V Lok Maheshwari, et al., G.R. 155014, November 11, 2005. Limited liability rule (a) (b) (c) (d) (e) Philippine Shipping Company, et al. vs. Vergara, G.R. L-1600, June 1, 1906; Yangco vs. Laserna, et al., G.R. L-47447-47449, October 29, 1941; Loadstar Shipping vs. CA, et al., G.R. 131621, September 28, 1999; Monarch Insurance, et al. vs. CA, et al., G.R. 92735, June 8, 2000; Aboitiz Shipping vs. New India Assurance, G.R. 156978, May 2, 2006.

Doctrine of inscrutable fault; doctrine of last clear chance not applicable in maritime collision Williams vs. Yangco, 27 Phil 68 [1914] Bill of lading
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(a) (b)

Telengtan Bros. vs. CA, 236 SCRA 617 [1994]; Keng Hua Paper Products vs. CA, et al., G.R. 116863, February 12, 1998.

Averages (a) (b) American Home Assurance vs. CA, 208 SCRA 343 [1992]; Philippine Home Assurance vs. CA, et al., G.R. 106999, June 20, 1996.

V SALVAGE LAW
Act 2616 (1916)

5.1

Topics The many meanings of salvage Fortuitous salvage Salvage as a business Requirement of Salvor Certificate of Registration (see Salvage Regulations, Philippine Coast Guard Memorandum Circular No. 06-96) Essential requisites for a valid salvage claim (Sec. 1) Rights and obligations of owner after salvage (Secs. 1 and 6) Entitlement to reward for salvage (Secs. 1, 2, 12, and 13) Non-entitlement to reward for salvage (Secs. 2 and 8) Where there is no agreement on amount of reward (Sec. 10) Impugnment of reward (Secs. 9 and 10) Duty to deliver salvaged vessel or things to authorities (Secs. 3, 5, 7, and 11))

5.2

Case Salvage distinguished from towage Barrios vs. Carlos A. Go Thong & Co., G.R. L-17192, March 30, 1963.

VI CARRIAGE OF GOODS BY SEA ACT

CA 65 (1936) accepting U. S. Act 521 (1936).

6.1

Topics Contracts of carriage of goods by sea covered Included in term carrier (Sec. 1[a]; see Insurance Co. of North America vs. Phil. Ports Terminal, G.R. L-6420, July 18, 1955) Excluded from term goods (Sec. 1[c]) Meaning of the term loss Notice of loss of, or damage to, goods delivered (Sec. 3[6]) Period of prescription of actions (Sec. 3[6])

6.2

Cases Meaning of the term loss

(a) (b) (c)

E. E. Elser, Inc. vs. CA, G.R. L-6517, November 29, 1954; Ang vs. American Steamship Agencies, G.R. L-22491, January 27, 1967; Mitsui O.S.K. Lines vs. CA, G.R. 119571, March 11, 1998.

Period of prescription of actions

(a) (b)

Yek Tong Lin Fire & Marine Ins. Co. Ltd. vs. APL Inc., G.R. L-11081, April 30, 1958; Union Carbide vs. Manila Railroad, G.R. L-277798, June 15, 1977;
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(c) (d)

Dole Philippines vs. Maritime Co., G.R. L-61352, February 27, 1987; Mayer Steel Pipe Corp. , et al. vs. CA, et al., G.R. 124050, June 19, 1997 .

Limitation on carriers liability for shipped goods under COGSA Philippine Charter Insurance Corporation vs. Neptune Orient Lines, et al., G.R. 145044, June 12, 2008.

VII PUBLIC SERVICE ACT

CA 146 (1936), as amended by CA 454 (1939), RA 178 (1947), RA 723 (1952), RA 1270 (1955), RA 2031 (1957), RA 2677 (1960) and RA 3792 (1963).

7.1

Topics Relevant provisions of the Constitution (Secs. 11, 17, and 18 of Art. XII) Public service (Sec. 13[b]); exceptions (Secs. 13 and 14) Public utility Cannibalization of the functions of the Public Service Commission Requisites for grant of CPC or CPCN (Sec. 16[a]) Prior or old operator rule Ruinous competition Kabit system Grounds for suspending or revoking CPC or CPCN (Sec. 16 [m] and [n]) Unlawful acts (Sec. 19) Acts requiring approval of regulatory agency (Sec. 20) Penalties (Sec. 23) Prescriptive periods (Sec. 28)

7.2

Cases Public market not a public service or utility Chamber of Filipino Retailers vs. Villegas, 44 SCRA 406 Operation of public utilities vs. ownership of facilities Tatad, et al. vs. Garcia, et al., G.R. No. 114222, April 6, 1995. Actual operator as agent of registered operator Vargas vs. Langcay, 6 SCRA 174. Liability of registered owner of motor vehicle Erezo vs. Jepte, G.R. L-9603, September 30, 1957. Liability of leasing company for loss, damage or injury caused to a third party by a motor vehicle leased from the former PCI Leasing and Finance, Inc. vs. UCPB General Insurance Co., Inc., G.R. 162267, July 4, 2008. Authority of NTC to cancel CPCs of radio broadcasting companies Divinagracia vs. Consolidated Broadcasting System, Inc, et al., G.R. 162272, April 7, 2009

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