CHAPTER 1
GENERAL CONCEPTS
Moreover, while a common carrier cannot stipulate that it is exempt from liability for
negligence of its agents or employees, a private carrier may validly enter into such
stipulation.
IV. DISTINGUISHED FROM TOWAGE, ARRASTRE AND STEVEDORING
In towage, one vessel is hired to bring another vessel to another place.
On the other hand, the functions of arrastre operator usually include: to receive, handle,
care for, and deliver all merchandise; to record or check all merchandise; and to furnish
light, and water services and other incidental services.
The function of stevedores involve the loading and unloading of coastwise vessels calling at
the port.
V. GOVERNING LAWS
Article 1766 of the Civil Code expresses: In all matters not regulated by this Code, the
rights and obligations of common carriers shall be governed by the Code of Commerce and
by special laws.
Article 1753: The law of the country to which the goods are to be transported shall govern
the liability of the common carrier for their loss, destruction or deterioration.
IV. NATURE OF BUSINESS
Common carriers are public utilities. As such, they are impressed with public interest and
concern.
V. REGISTERED OWNER RULE AND KABIT SYSTEM
a. Registration Laws
Registration of motor vehicles is now government by Republic Act 4136 otherwise known as
The Land Transportation and Traffic Code
b. Registered Owner Rule
The rule in this jurisdiction is that the person who is the registered owner of a vehicle is
liable for any damage caused by the negligent operation of the vehicle although the same
was already sold or conveyed to another person at the time of the accident.
The registered owner is liable to the injured party subject to his right or recourse against
the transferee or the buyer.
c. Kabit System
The registered owner rule is applicable whenever the persons involved are engaged in
CHAPTER 2
OBLIGATIONS OF THE PARTIES
goods which he may make to the point of delivery; and should he not do so, the damages
caused by the delay should be for his account.
b. Consequences of Delay
Article 1747 of the Civil Code: If the common carrier, without just cause, delays the
transportation of the goods or changes the stipulated or usual route, the contract limiting
the common carriers liability cannot be availed of in case of the loss, destruction, or
deterioration of the goods.
In cases of delay on account of the fault of the shipper, the consignee may leave the goods
transported in the hands of the carrier, informing him thereof in writing before the arrival of
the same at the point of destination.
Right of Passengers in Case of Delay is specifically provided in Article 698 of the Code of
Commerce: In case a voyage already begun should be interrupted, the passenger shall be
obliged to pay the fare in proportion to the distance covered, without right to recover for
losses and damages if the interruption is due to fortuitous event or force majeure, but with
a right to indemnity if the interruption should have been caused by the captain exclusively.
Memorandum Circular No. 112 issued by Maritime Industry Authority provides: In case the
vessel is not able to depart on time and the delay is unreasonable, the passenger may opt
to have his/her ticket immediately refunded without any refund service fee.
c. Where and to Whom Delivered
a. Place
The goods should be delivered to the consignee in the place agreed upon by the parties. If
the specific place or warehouse is designated in the bill of lading, the goods must be
delivered in such place.
b. Consignee
The goods should be delivered to the consignee or any other person to whom the bill of
lading was validly transferred or negotiated.
Article 369 of the Code of Commerce provides: If the consignee cannot be found at the
residence indicated in the bill of lading, or if he refuses to pay the transportation charges
and expenses, or if he refuses to receive the goods, the municipal judge, where there is
none of the first instance, shall provide for their deposit at the disposal of the shipper, this
deposit producing all the effects of delivery without prejudice to third parties with a better
right.
c. Delay to Transport Passengers
The basic rule that applies to carriage of goods shall also apply to carriage of passengers.
d. Duty to Exercise Extraordinary Diligence
The goods should be delivered in the same condition that they were received and to
transport passengers without encountering any harm or loss. In the exercise of this
obligation, the common carrier is obligated to exercise extraordinary diligence.
Article 1755 of the Civil Code explains extraordinary diligence: A common carrier is bound
to carry the passengers safely as far as human care and foresight can provide, using the
utmost diligence of very cautious person, with due regard for all circumstances.
a. Presumption of Negligence
In case of loss of effects or cargo or passengers or death or injuries to passengers, the
common carrier is presumed to be at fault or have acted negligently unless he had observed
extraordinary diligence in the vigilance thereof.
b. Duration of Duty
Article 1736 of the Civil Code provides: The extraordinary responsibility of the common
carrier lasts from the time the goods are unconditionally placed in the possession of, and
received by the carrier for transportation until the same are delivered, actually or
constructively, by the carrier to the consignee, or to the person who has a right to receive
them.
With respect to carriage of passengers by trains, the extraordinary diligence commences the
moment the person who purchases the ticket presents himself at the proper place and in a
proper manner to be transported with a bona fide intent to ride the coach.
With respect to carriage of passengers by sea, the duty of the carrier commences as soon
as the person with bona fide intention of taking passage places himself in the care of the
carrier or its employees and is accepted as passenger.
Motor vehicles like passenger jeepneys and buses are duty bound to stop their conveyances
for a reasonable length of time in order to afford passengers an opportunity to board and
enter. The rule is that once a public utility bus or jeepney stops, it is making a continuous
offer to bus riders.
e. Defenses of Common Carriers
The defenses that can be raised by common carriers for the loss, destruction, deterioration
of the goods are:
(1) Flood, storm, earthquake, lightning and other natural disaster and calamity;
(2) Acts of the public enemy at war, whether international or civil;
(3) Act or omission of the shipper or owner of the goods;
(4) The character of the packing of the goods in the packing or in the containers;
Article 1743: If through the order of public authority the goods are seized or destroyed, the
common carrier is not responsible, provided said public authority had power to issue the
order.
f. Defenses in Carriage of Passengers
The primary defense of the carrier in transporting passengers is exercise of extraordinary
diligence. Thus, even if there is a fortuitous event, the carrier must also present proof of
exercise of extraordinary diligence.
a. Employees
Article 1759. Common carriers are liable for the death of or injuries to passengers through
the negligence or willful acts of the formers employees although such employees may have
acted beyond the scope of their authority or in violation of the orders of the common
carriers.
b. Other Passengers and Third Persons
Article 1763. A common carrier is responsible for injuries suffered by a passenger on
account of the willful acts or negligence of other passengers or strangers, if the common
carriers employees through the exercise of the diligence of a good father of a family could
have prevented or stopped the act or omission.
g. Passengers Baggages
Baggage that are checked in or delivered to the carrier are governed by the rules discussed
above requiring extraordinary diligence.
II. OBLIGATIONS OF SHIPPER, CONSIGNEE AND PASSENGER
a. Negligence of Shipper or Passenger
Contributory negligence on the part of the passenger is not a defense that will excuse the
carrier from liability. It will only mitigate such liability. However, the negligence of the
shipper or the passenger may be the proximate and only cause of the loss, in which case,
the carrier should not be made liable.
In Article 1761 of Civil Code provides: The passenger must observe the diligence of a good
father of a family to avoid injury to himself.
Thus, the carrier may be able to prove that the only cause of the loss of the goods is any of
the following acts of the shipper:
(1) Failure of the shipper to disclose the nature of the goods;
(2) Improper marking or direction as to destination; and
(3) Improper loading when he assumes that responsibility.
CHAPTER 3
EXTRAORDINARY DILIGENCE
I. RATIONALE
Article 1755 of the Civil Code explains extraordinary diligence: A common carrier is bound
to carry the passengers safely as far as human care and foresight can provide, using the
utmost diligence of very cautious person, with due regard for all circumstances.
The Code Commission explained why extraordinary diligence must be complied with the
performance of the functions of a common carrier: This high standard of care is
imperatively demanded by the preciousness of human life and by the consideration that
every person must be in every way be safeguarded against all injury.
prescribe formula. Thus, the Supreme Court explained in one case that it is sufficient to
reiterate that the source of a common carrier's legal liability is the contract of carriage, and
by entering into said contract, it binds itself 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
due regard for all the circumstances.
A. Duty to Third Persons
The duty to exercise extraordinary diligence is primarily owed to the passengers and the
goods that are being transported.
However, it was ruled in one case that the duty even extends to the members of the crew or
complement operating the carrier.
Additionally, there is authority for the view that extraordinary diligence is owed not only to
passengers or shippers but also to third persons as well. Thus, the Supreme Court ruled in
Kapalaran Bus Lines v. Coronado: ... The passengers and owners of cargo carried by
common carrier, they are not only persons that the law seeks to benefit. For if common
carriers carefully observed the statutory standard of extraordinary diligence in respect of
their own passengers, they cannot help but simultaneously benefit pedestrians and the
owners and passengers of other vehicles who are equally entitled to the safe and convenient
use of our roads and highways.
the diligence owed to accommodation passenger is only ordinary diligence. The defendant in
the said case was not a common carrier. It was a private carrier who accommodated the
deceased passenger.
With respect to vessels that carries passengers, the Maritime Industry Authority prescribes
rules which provide for indispensable equipment and facilities.
B. Overloading
Duty to exercise due diligence likewise includes the duty to take passengers or cargoes that
are within the carrying capacity of the vessel.
C. Proper Storage
The vessel may be suitable for the cargo but this is not enough because the cargo must also
be properly stored.
D. Negligence of Captain and Crew
a. Rules on passenger safety
Memorandum Circular No. 12 issued by MARINA provides that have the right to be treated
by the carrier and its employees with kindness, respect, courtesy and due consideration.
They entitled to be protected against personal conduct, injurious language, indignities and
abuses from the said carrier and its employees.
E. Deviation and Transshipment
a. Deviation
Art. 359 of the Code of Commerce:
If there is an agreement between the shipper and the carrier as to the road over which the
conveyance is to be made, the carrier may not change the route, unless it be by reason of
force majeure; and should he do so without this cause, he shall be liable for all losses which
the goods he transports may suffer from any other cause, beside paying the sum which may
have been stipulated for such case.
When on account of said cause of force majeure, the carrier had to take another route
which produced an increase in transportation charges, he shall be reimbursed for such
increase upon formal proof thereof.
b. Transshipment
Transshipment of freight without legal excuse is a violation of the contract and an
infringement of the right of the shipper, and subjects the carrier to liability if the freight is
lost even by a cause otherwise excepted.
Transshipment, in maritime law, is defined as the act of taking cargo out of one ship and
loading it in another, or the transfer of goods from vessel stipulated in the contract of
affreightment to another vessel before the place of destination named in the contract has
been reached.
I. CONCEPTS
A bill of lading or a ticket is not necessary for the perfection of a contract of carriage. Thus,
the obligation of the carrier to exercise extraordinary diligence in transporting the goods or
passengers is present even if no bill of lading or ticket was issued by the carrier.
Additionally, Sections 25 and 26 of the Electronic Commerce Act (RA No. 8792) allow data
messages or electronic documents to be used in lieu of transport documents in writing or
paper documents.
A. Definition
Bill of Lading is a written acknowledgment, signed by the master of a vessel or other
authorized agent of the carrier, that he has received the described goods from the shipper,
to be transported on the expressed terms to the described place of destination, and to be
delivered there to the designated consignee or parties.
B. Kinds
A bill of lading may be either: (1) negotiable or non-negotiable, (2) clean bill of lading or
foul bill of lading, (3) on board bill or received for shipment bill, (4) spent bill of lading,
(5) through bill of lading, (6) custody bill of lading, or (7) port bill of lading.
a. Clean bill of lading and foul bill of lading
A clean bill of lading is one which does not contain any notation indicating any defect in the
goods. A foul bill of lading is one that contains such notation.
b. Spent bill of lading
Where the goods are already delivered by the carrier, the carrier is supposed to have
retrieved the covering bill of lading that he issued for the goods. If the goods were already
delivered but the bill of lading was not returned, the bill of lading is called spent bill of
lading.
c. Through bill of lading
A through bill of lading is one issued by a carrier who is obliged to use the facilities of
other carriers as well as his own facilities for the purpose of transporting the goods from the
city of the seller to the city of the buyer, which bill of lading is honored by the second and
other interested carriers who do not issue their own bill of lading.
d. On board bill v. received for shipment bill
An on board bill of lading is one in which it is stated that the goods have been received on
board the vessel which is to carry the goods, whereas a received for shipment bill of lading
is one in which it is stated that the goods have been received with or without specifying the
vessel by which the goods are to be shipped.
e. Custody bill of lading
In this type of bill of lading, the goods are already received by the carrier but the vessel
indicated therein has not yet arrived in the port.
f. Port bill of lading
In a port bill of lading, the vessel indicated in the bill of lading that will transport the goods
is already in the port.
II. NATURE OF BILL OF LADING
It is a long standing jurisprudential rule that a bill of lading operates both: (1) as a receipt
and (2) as a contract. A third characteristic may be added (3) it is a document of title.
It is a receipt for the goods shipped and a contract to transport and deliver the same as
therein stipulated.
As a contract, it stipulates the rights and obligations assumed by the parties. Being a
contract, it is the law between the parties who are bound by its terms and conditions
provided that these are not contrary to law, morals, good customs, public order, and public
policy.
III. WHEN EFFECTIVE
A bill of lading usually becomes effective upon its delivery to and acceptance by the shipper.
It is presumed that the stipulations of the bill were, in the absence of fraud, concealment or
improper conduct, known to the shipper, and he is generally bound by his acceptance
whether he reads the bill or not.
The holding in most jurisdictions has been that a shipper who receives a bill of lading
without objection after an opportunity to inspect it is presumed to have accepted it as
correctly stating the contract and to have assented to its terms.
IV. BILL OF LADING AS CONTRACT
The three-fold nature of a bill of lading is obviously applicable only to carriage of goods.
However, the nature of bill of lading as a contract applies to tickets issued to passengers.
A. Contract of Adhesion
Bills of lading, as well as tickets, constitute a class of contracts of adhesion. Hence, they are
normally construed liberally in favor of the passenger or shipper who adhered to such bill of
lading or ticket.
Contracts of adhesion are contracts wherein almost all the provisions of which have been
drafted only by one party. The only participation of the other party is the signing of his
signature or his 'adhesion' thereto. Examples are: insurance contracts, bills of lading,
contracts of make of lots on the installment plan.
Under which contracts, the passenger/shippers cannot change terms and they are thus
made to adhere thereto on the take it or leave it basis. Thus, certain guidelines in the
determination of their validity and enforceability have been formulated in order that justice
and fair play characterize the relationship of the contracting parties.
Consequently, the parties, whether the carrier or shipper, cannot escape liability by
adverting to the bill of lading as a contract of adhesion, if the bill of lading has no
ambiguities or obscurities.
B. Parol Evidence Rule
A bill of lading is covered by the parol evidence rule. Under the parol evidence rule, the
terms of a contract are rendered conclusive upon the parties, and evidence aliunde is not
admissible to vary or contradict a complete and enforceable agreement embodied in a
document, subject to well defined exceptions.
As an exception to the parol evidence rule is one which is a mistake of fact mutual to the
parties. However, in order that parol evidence may be admitted, said mistake must be put in
issue by the pleadings, such that if not raised inceptively in the complaint or in the answer,
as the case may be, a party cannot later on be permitted to introduce parol evidence
thereon.
Parol evidence cannot be admitted where the mistake adverted to was supposedly
committed by one party only and was raised by the former rather belatedly.
C. Bill of Lading as Evidence
Bill of lading is the legal evidence of the contract.
All the essential elements of a valid contract are present in a bill of lading or ticket, i.e.
consent, cause or consideration and object.
D. Bill of Lading as Actionable Document
When a shipper enforces contractual obligation under the contract of carriage as stated in
the bill of lading, such bill of lading can be categorized as an actionable document under the
Rules of Court. Hence, the bill of lading must be properly pleaded either as causes of action
or defenses; the genuineness and due execution of which are deemed admitted unless
specifically denied under oath by the adverse party.
E. Basic Stipulations
The stipulations that must be stated in the bill of lading are provided for in the Code of
Commerce.
F. Prohibited and Limiting Stipulations
a. Civil Code
Three kinds of limiting stipulations have often been made in bill of lading:
1. exempting the carrier from any and all liability for loss or damage occasioned by its own
negligence
2. providing for an unqualified limitation of such liability of the carrier to an agreed valuation
3. limiting the liability of the carrier to an agreed valuation unless the shipper declares a
higher value and pays a higher rate of freight
The first and second kinds of stipulations are invalid. The third is valid and enforceable.
(1) Purpose
The purpose of the limiting stipulation in the Bill of Lading is to protect the common carrier.
Such stipulation obliges the shipper/consignee to notify the common carrier of the amount
that the latter may be liable for in case of loss of the goods. The common carrier can then
take appropriate measures--- getting insurance, if needed, to cover or protect itself.
(2) Stipulation reducing diligence
The parties cannot stipulate so as to totally exempt the carrier from exercising any degree
of diligence; and the parties cannot stipulate that the common carrier shall exercise
diligence less than the diligence of a good father of a family. However, the parties may
stipulate that diligence to be exercised by the common carrier in the carriage of goods be
less than the extraordinary diligence provided that the following requisites are complied
with:
1. that the stipulation be in writing signed by both parties
2. that the stipulation be supported by a valuable consideration other than the service
rendered by the common carrier, and
3. that the stipulation be reasonable, just and not contrary to law
However, no such stipulation is allowed for carriage of passengers. The responsibility of a
common carrier to exercise utmost diligence for the safety of the passengers cannot be
dispensed with or lessened by stipulation or statement on tickets or otherwise (Art. 1757 of
the Civil Code).
A contract fixing the sum that may be recovered by the owner or shipper for the loss,
destruction, or deterioration of the goods is valid, if it is reasonable and just under the
circumstances, and has been fairly and freely agreed upon (Art. 1750 of the Civil Code).
Moreover, Art. 1749 of the Civil Code provides that a stipulation that the common carrier's
liability is limited to the value of the goods appearing in the bill of lading, unless the shipper
or owner declares a greater, is binding.
b. Carriage of Goods by Sea Act (COGSA)
COGSA applies suppletorily to the Civil Code if the goods are to be shipped from a foreign
port to the Philippines. Under COGSA, the liability of the carrier is US$500 per package in
the absence of a shipper's declaration of a higher value in the bill of lading.
Each carton is considered a package, or that would be considered package shipped in a
container supplied by the carrier.
V. BILL OF LADING AS RECEIPT
The issuance of a bill of lading carries the presumption that the goods were delivered to the
carrier issuing the bill, for immediate shipment.
VI. BILL OF LADING AS DOCUMENT OF TITLE
The Bill of Lading, until complete delivery of the cargo has been made on someone rightfully
claiming under it, remains in force as a symbol, and carries with it not only the full
ownership of the goods, but also all rights created by the contract of carriage between the
shipper and the ship owner.
Art. 1507 of the Civil Code states: A document of title 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 is negotiable document of title.
How negotiated? (a) bearer document; (b) order document a document which states that
the goods are to be delivered to the order of a person name therein.
Effect of Negotiation: Art. 1513 of the Civil Code provides:
A person to whom a negotiable document of title has been duly negotiated acquires
thereby:
(1) Such title to the goods xxx;
(2) The direct obligation of the bailee issuing the document to hold possession of the goods
for him xxx
CHAPTER 5
ACTIONS AND DAMAGES IN CASE OF BREACH
I. DISTINCTIONS
Passengers and shippers who suffered damages because of the breach of the contractual
obligation of the carrier may sue the latter for damages. The source of obligation is culpa
contractual. This source of obligation is separate and distinct from quasi-delict under Art.
2176 of the Civil Code.
II. CONCURRENT CAUSES OF ACTION
The same act that breaches the contract may also be tort. Hence, a negligent act that
breaches the contract may give rise to a liability based on contract and quasi-delict under
Art. 2176 of the Civil Code. In fact, with respect to the employee of the carrier, civil liability
may be based on quasi-delict as well as on criminal liability under Art. 100 of the Revised
Penal Code.
Hence, the cause of action of a passenger or shipper against the common carrier can be
culpa contractual or culpa aquiliana while the basis on the part of the driver is either culpa
delictual or culpa aquiliana.
A. Solidary Liability
In case the negligence of the carrier's driver and a third person concurs, the liabilities of the
parties carrier and his driver, third person is joint and several.
e.g. While docking the vessel, Taurus, the master, through negligence, damaged the wharf
and the merchandise loaded on the deck. The owner of the wharf and the owner of the
merchandise sued the owner of the vessel and master of the vessel for the damage.
a) What is the basis of the liability of the owner of the vessel with respect to the damage of
the wharf?
b) With respect to the damage to the merchandise?
Ans: a) The shipowner may be made liable based on quasi-delict under Art. 2176 of the Civil
Code with respect to the damage of the wharf. The master of the vessel caused damage to
the wharf through negligence without any preexisting contractual relations between the
parties.
b) The shipowner may be liable for breach of contract for the damage to the merchandise.
The carrier has an obligation safely to their destination. The carrier failed to do so because
of the negligence of his employees.
III. NOTICE OF CLAIM AND PRESCRIPTIVE PERIOD
A. Overland Transportation of Goods and Coastwise Shipping
a. When to file a claim with carrier
A condition precedent for an action against the carrier in overland transportation is the filing
of claim with the carrier within the period prescribed under Art. 366 of the Code of
Commerce. Non-filing of the claim bars recovery. Before an action can properly be
commenced all the essential elements of the cause of action must be in existence, that is,
the cause of action must be complete.
Under Art. 366 of the Code of Commerce, an action for damages is barred if the goods
arrived in damaged condition and no claim is filed by the shipper within the following period:
(1) immediately if damage is apparent; or (2) within twenty four (24) hours from delivery if
damage is not apparent.
The period does not begin to run until the consignee has received possession of the
merchandise that he may exercise over it the ordinary control pertinent to ownership.
1) Effect of stipulation
The period prescribed in Art. 366 of the Code of Commerce may be subject to modification
by agreement of the parties. The parties may stipulate in the bill of lading a period that is
different from the period provided by Art. 366.
b. Extinctive Prescription
There being no special rules with respect to the contract of carriage, the general rule under
the Civil Code, the extinctive period is six (6) years if there is no written contract and ten
(10) years if there is a written contract.
B. International Carriage of Goods by Sea
A claim must be filed with the carrier within the following period: (1) if the damage is
apparent the claim should be filed immediately upon discharge of the goods; or (2) within
three (3) days from delivery if damage is not apparent. Nevertheless, it has been settled
that the filing of claim is not condition precedent. Sec. 3 of the Carriage of Goods by Sea Act
provides that such fact shall not affect or prejudice the right of the shipper to bring suit.
The shipper can still bring an action to recover said loss or damage within one (1) year after
the delivery of goods.
a. Prescription
The action for damages under COGSA must be filed within a period of one (1) year from
discharge of the goods. In other words, the prescriptive period of one (1) year commences
from discharge.
The period is not suspended by an extra-judicial demand. Art. 1155 of the Civil Code cannot
be applied because matters affecting transportation of goods by sea should be decided in as
short a time as possible.
If the damage sustained by the cargo is not apparent, notice should be given within three
(3) days to the carrier, and action for damages should be filed within one (1) year from date
of delivery.
The period does not apply to misdelivery. The applicable rule is the Civil Code provisions on
prescriptive period, including Art. 1155 thereof. The goods are not actually lost or damaged.
The applicable period is 10 years.
The rule applies in collision cases. However, the one (1) year period starts not from the date
of collision but when the goods should have been delivered, had the cargoes been saved.
1) Insurance
The insurer who is exercising its right of subrogation is also bound by the one (1) year
prescriptive period. However, it does not apply to the claim against the insurer for the
insurance proceeds. The claim against the insurer is based on contract that expires in ten
(10) years.
IV. RECOVERABLE DAMAGES
Damages is the pecuniary compensation, recompense, or satisfaction for injury sustained.
Other definition: Damages is pecuniary consequences which the law imposes for the breach
of some duty or violation of some rights.
The Code Commission saw that the old civil code had but few general principles on the
measure of damages.
A. Extent of Recovery
The extent of recovery in case of contractual breach is expressly provided for in Art. 2201 of
the New Civil Code. Applying the provisions to a contract of carriage, the carrier in good
faith is liable only to pay for the damages that are the natural and probable consequence of
the breach of obligation, and which the parties have foreseen or could have reasonably
foreseen at the time the obligation was constituted. However, if the carrier is in bad faith or
gross negligence, the carrier is liable for all damages, whether the same can be foreseen or
not.
It should be noted, however that the carrier who may be compelled to pay damages for the
loss or damage to the goods or passengers has the right of recourse against the employee
who committed the negligent, willful or fraudulent act.
B. Kinds of Damages
a. Actual or compensatory damages
Art. 2199 of the Civil Code provides thatexcept as provided by law or by stipulation, one is
entitled to an adequate compensation only for such pecuniary loss suffered by him as he
has duly proved.
Two kinds of actual or compensatory damages:
(a) the loss of what the person already possesses (dano emergente)
(b) the failure to receive as a benefit that would have pertained to him (lucro cesante)
In case of a person's death caused by a crime or quasi-delict, under Art.2206 of the Civil
Code, the plaintiff is entitled to at least three thousand pesos (P3,000.00). In addition:
(a) loss of the earning capacity of the deceased
(b) support to the recipient whom the deceased was obliged to giveaccording to the
provisions of Art. 291 of the Civil Code
(c) moral damages for mental anguish of the spouse, legitimate and illegitimate
descendants and ascendants of the deceased by reason of the death of the deceased
1) Loss of earning capacity
The amount of loss of earning capacity that should be awarded is:
Net Earning Capacity = Life Expectancy x (Gross Annual Income less Necessary Living
expenses)
Life expectancy is computed by applying the formula: 2/3 x 80 age at death (adopted in
the American Expectancy Table of Mortality)
2) Attorney's Fees
3)Interests
b. Moral damages
The Civil Code provides that moral damages include physical suffering, mental anguish,
fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social
humiliation, and similar injury.
Moral damages may be recovered if they are the proximate result of the defendant's
wrongful act or ommission.
Generally, no moral damages where the breach of contract is not malicious.
c. Nominal damages
It is adjudicated to vindicate the right of the plaintiff.
d. Temperate or moderate damages
It may be recovered when the court finds that some pecuniary loss has been suffered but its
amount cannot be provided with certainty.
e. Liquidated damages
It is that is agreed upon by the parties to a contract, to be paid in case of breach thereof.
f. exemplary or corrective damages
It may be imposed by way of example in addition to compensatory damages.
PART II
MARITIME LAW
CHAPTER 6
GENERAL CONCEPTS
equipments xxx.
Art. 590: The co-owners of the vessel shall be civilly liable in the proportion of their
contributions xxx for the results of the acts of the captain xxx.
Each co-owner may exempt himself from this liability by the abandonment xxx.
Art. 643: If the vessel and her cargo should be totally lost by reason of capture or wreck,
all rights shall be extinguished xxx
Art. 837: The civil liability incurred by the shipowners in the case prescribed in this
section, shall be understood as limited to the value of the vessel with all her appurtenances
and freight earned during the voyage.
C. Coverage
Art. 837 applies the principle of limited liability in cases of collision. While Arts. 587 and 590
embody the universal principle of limited liability in all cases. However, taken together, Arts.
837, 587, and 590 cover only: (1) liability to third persons, (2) acts of the captain, and (3)
collisions.
D. Exceptions
Exceptions to the limited liability rule:
(a) where the injury or death to a passenger is due either to the fault of the shipowner, or
to the concurring negligence of the shipowner and the captain
(b) where the vessel is insured
(c) in workmen's compensation claim
a. Negligence
The limited liability rule applies if the captain or the crew caused the damage or injury.
However, if the failure to maintain in the seaworthiness of the vessel can be ascribed to the
shipowner alone or the shipowner concurrently with the captain, then the limited liability
principle cannot be invoked.
b. Insurance
The limited liability rule does not apply to insurance claims. The Supreme Court explained
that the total loss of a vessel does not extinguish the liability of the carrier's insurer. Its
insurance answers for the damages that a shipowner or agent, may be held liable for by
reason of the death of its passengers.
c. Worker's compensation
The Supreme Court held that the limited liability rule have no room in the application of the
Worker's Compensation Act which seeks to improve, and aims at the amelioration of, the
condition of laborers and employees. Such compensation has nothing to do with the
provisions of the Code of Commerce. It is an item in the cost of production which must be
included in the budget of any well-managed industry.
E. Abandonment
Abandonment of the vessel, its appurtenances and the freightage is an indispensable
requirement before the shipowner or shipagent can enjoy the benefits of the limited liability
principle. If the carrier does not want to abandon the vessel, then he is still liable even
beyond the value of the vessel.
The only instance where such abandonment is dispensed with is when the vessel was
entirely lost. In such case, the obligation is thereby extinguished.
F. Procedure for Enforcement
The Supreme Court stated that more to the point, the rights of parties to claim against an
agent or owner of a vessel may be compared to those of creditors against an insolvent
corporation whose assets are not enough to satisfy the totality of claims as against it...
Creditors must limit their recovery to what is left in the name of the corporation.
III. PROTESTS
Protest is the written statement by the master of a vessel or any authorized officer, attested
by proper officer or a notary, to the effect that damages has been suffered by the ship.
Protest is required under the Code of Commerce in the following cases:
(a) when the vessel makes an arrival under stress
(b) where the vessel is shipwrecked
(c) where the vessel has gone through a huricane or the captain believes that the cargo has
suffered damages or averages
(d) maritime collisions
(di)
IV. ADMIRALTY JURISDICTION
The Regional Trail Court has jurisdiction in all actions in admiralty and maritime jurisdiction
where the demand or claim exceeds P300,000 or, in Metro Manila, where such demand or
claim exceeds P400,000. (Sec. 19(3) of BP Blg. 129.
It means that all other cases where the amount of the demand or claim is less than the
jurisdictional amount in the Regional Trail Court, the jurisdiction are with the metropolitan
Trial Court, Municipal Trial Court or Municipal Circuit Trial Court as the case may be.
CHAPTER 7
VESSELS
I. GENERAL CONCEPTS
A. Definitions
A Vessel or watercraft is defined under Presidential Decree No. 474 as any barge, lighter,
bulk carrier, passenger ship freighter, tanker, container ship, fishing boats, or other artificial
contrivance utilizing any source of motive power, designed, used or capable of being used as
a means of transportation operating either as a common contract carrier, including fishing
vessels covered under Presidential decree No. 43, except: (i) those owned and/or operated
by the Armed Forces of the Philippines and by foreign governments for military purposes,
and (ii) bancas, sailboats and other waterbone contrivance of less than three gross tons
capacity and not motorized.
B. Construction, Equipment and Manning
The construction, equipment and manning of vessels are subject to the rules issued by the
Maritime Industry Authority. This rule is consistent with the provisions of Code of Commerce
particularly Art. 574.
C. Personal Property
Vessels are personal property under Art. 416 of the Civil Code. The same rule can be found
in Art. 585 of the Code of Commerce.
II. OWNERSHIP
A. Acquisition
Vessels may be acquired or transferred by any means recognized by law. Thus, vessels may
be sold, donated, and may even be acquired through prescription.
B. Registration
Vessels are now registered through the Maritime Industry Authority.
It is a long standing rule that the person who is the registered owner of the vessel is
presumed to be the owner of the vessel. Moreover, it is likewise a settled rule that the sale
or transfer of the vessel is not binding on third persons unless the same is registered.
III. SHIP'S MANIFEST
Vessels are required to carry manifests in coastwise trade as provided in Section 906 of the
Tariff and Customs Code. This requirement is likewise imposed on every vessel from foreign
port under Section 1005 of the same Code.
A manifest is a declaration of the entire cargo. Hence, the requirement is not complied even
if a bill of lading can be presented. A bill of lading is just a declaration of a specific cargo
rather than the entire cargo.
IV. MORTGAGE
Mortgage and other encumbrances over vessels are governed by the provisions of
presidential Decree 1521, otherwise known as the Ship mortgage Decree of 1978. The same
law as well as Section 12 of Executive Order 125 as amended is being implemented with
respect to annotation/cancellation of mortgages and transfer of rights and other
encumbrances of vessels by Memorandum Circular No. 100 which was issued by MARINA in
April 1995.
V. OTHER CODE OF COMMERCE PROVISIONS
The provisions of the Code of Commerce are deemed modified not only by the Civil Code but
also by special laws.
VI. SAFETY REGULATIONS
On February 23, 2000, MARINA under Memorandum Circular No. 154 reiterated the rules in
line with the continuing thrust of government to foster maritime safety.
CHAPTER 8
PERSONS WHO TAKE PART IN MARITIME COMMERCE
The provisions of the Code of Commerce on discharge of the captain of the crew is subject
to the provisions of the Labor Code of the Philippines for those who are employed for
domestic transportation or commerce as well as rules promulgated the Philippine Overseas
Employment Administration (POEA) for seamen who are hired for overseas employment.
II. CAPTAINS AND MASTERS OF VESSELS
A. Concept
The name of captain or master is given according to the kind of vessel the person is in
charge of.
Captain - as a denomination is applied to those who govern vessels that navigate the high
seas or ships of large dimensions and importance, although they be engaged in the
coastwise trade.
Master are those who command smaller ships engaged exclusively in the coastwise trade.
Nevertheless, for the purposes of maritime commerce, the words captain and master
have the same meaning; both being the chiefs or commanders of ships.
B. Qualifications
Art.609 of the Code of Commerce states that Captains, amsters or patrons of vessels must
be Filipinos, have legal capacity to contract in accordance with this code, and prove the skill,
and qualifications necessary to command and direct the vessel, as established by marine
and navigation laws, ordinances, or regulations...
C. Powers and Functions
A captain commonly performs three (3) distinct roles:
(1) he is a general agent of the shipowner;
(2) he is also commander and technical director of the vessel; and
(3) he is a representative of the country under whose flag he navigates
Of these roles, the most important role is being the commander of the vessel--- operation
and preservation of the vessel during its voyage and the protection of passengers, crew and
cargo.
In his role as general agent of the shipowner, the captain has authority to sign bills of
lading, carry goods aboard and deals with the freight earned, agree upon rates and decide
whether to take cargo. He has legal authority to enter into contracts with respect to the
vessel subject to applicable limitations by statute, contract, or instructions and regulations
of shipowner.
D. Discretion of Captain or Master
A ship's captainmust be accorded a reasonable measure of discretionary authority to decide
what the safety of the ship and of its crew and cargo. The captain is held responsible for
such safety, presumed to be knowledgeable as to the specific requirements of seaworthiness
and the particular risks and perils of the voyage he is to embark on.
Indeed, if the ship captain is convinced that the ship owner's or ship agent's instructions will
result in imposing unacceptable risks or loss or serious danger to ship or crew, he cannot
casually seek absolution from his responsibility, if a marine casualty occurs, in following
such instructions.
E. Pilotage
Pilot - in maritime law, is a person duly qualified, and licensed, to conduct a vessel into or
out of ports, or in certain waters.
States possessing harbors have enacted laws or promulgated rules requiring vessels
approaching their ports to take on board pilots licensed under the local law. This is known as
compulsory pilotage.
The practice of marine profession is now governed by special laws and pertinent
rules issued by MARINA and the Board of Marine Deck Officers and Board of Mar
Engineer Officers. In particular, the Philippine Merchant Marine Officers Act of
1998 was passed in order to regulate Merchant Marine Profession in the
Philippines.
The law declares that it is the policy of the State to promote and insure the safety
of life and property at sea, protect and serve the marine environment and
ecology...
B. Minimum Safe Manning
It is not enough that the officers manning the merchant vessel have all the qualifications
imposed by the Philippine Merchant Marine Officers Act and other special laws or
regulations. It is also required that there is sufficient number of officers and crew that are
serving in the vessel.
CHAPTER 9
CHARTER PARTIES
Moreover, the bareboat charterer assumes the customary rights and liabilities of the
shipowner in relation to third persons who may have dealt with him or with the vessel.
B. Contract of Affreightment
The contract of Affreightment is subdivided into:
(1) Time Charter, and
(2) Voyage Charter
Time Charter the vessel is leased to the charterer for a fixed period of time.
Voyage Charter the vessel is leased for a single or particular voyage.
In the contract of affreightment, the charterer hires the vessel only, either for a determinate
period of a time or for a single or consecutive voyage, with the shipowner providing for the
provisions of the ship, the wages of the master and crew, and the expenses and
maintenance of the vessel.
III. EFFECT OF CHARTER ON CHARACTER OF CARRIER
Generally, the character of the common carrier as such is not affected by the charter party if
the same is a contract of affreightment. The rights and responsibilities of ownership still
rested on the owner, and the charterer was thereby freed from any liabiltiy to third persons
in respect of the vessel.
IV. PERSONS WHO MAY MAKE CHARTER
The owner or owners of the vessel, either in whole or in majoority part, who have legal
control and possession of the vessel, may validly enter into charter parties with a charterer.
A third person called a broker may, however, intervene in the execution of the charter
between the principals.
The charterer, by himself, may subcharter the entire vessel to a third person but only in the
event that there is no prohibition in the original charter. The subcharter, where entered into,
is an independent contract by itself involving only the charterer and the subcharterer and
therefore does not give rise to any contractual relation between the general owner and the
subcharterer.
V. REQUISITES OF A VALID CHARTER PARTY
As the charter party is a contract, it is therefore to be governed by the general principles
governing ordinary contracts. Hence, the aprties therein are free to stipulate upon such
terms and conditions that would suit their purposes, subject to the caveat that these should
not be contrary to law or public policy.
The requisites of a charter may be enumerated thus:
(1) consent of the contracting parties;
(2) an existing vessel which should be placed at the disposition of the shipper;
(3) the freight; and,
(4) compliance with the requirements of Art. 652 of the Code of Commerce
VI. FREIGHT
The parties themselves may fix the manner or form in which the charter price or money
shall be satisfied.
If there should be no stipulation, the rules should be that: (1) the freight shall begin to run
from the day of loading of the vessel; (2) in charters with a fixed period, the freight shall
begin upon that very day; and (3) if the freight is charged according to weight, the payment
thereof shall be made according to the gross weight, including the weight of the containers.
VII. DEMURRAGE AND DEADFREIGHT
Art. 652 of the Code of Commerce (par. 10) provides that the time for loading and
unloading shall be provided for in the Charter Party. The period so stipulated is what is
known as the lay days.
Demurrage a sum of money due by express contract for the detention of the vessel in
loading or unloading, beyond the time allowed for that purpose in the charter party.
Deadfreight the charterer may be made liable by the shipowner where the charterer failed
to occupy the leased portion of the vessel.
In connection with demurrage, it has been observed that unless the contrary intention
appears in the charter party, the stipulate dlay days do not begin to run against the
consignee until the vessel has arrived at berth or other usual and customary place for
loading or unloading, and is in actual readiness to discharge its cargo in accordance with its
legal obligation.
VIII. RIGHTS AND OBLIGATIONS OF THE CHARTER PARTIES
A. Shipowner or Captain
The evident failure or refusal on the part of the shipowner or of his agents to receive cargo
which had been contracted to be transported under the charter party constituted a sure
breach of the charter party, as to warrant a suit for damages by the charterer for such
breach.
Some of the primary rights and obligations of shipowners or captain:
(a) the shipowner is bound to observe the capacity of the vessel...;
(b) generally, any loss incurred by the shipper whose cargo is refused on account of the
receipt by the shipowner of a greater amount of cargo belonging to other persons shall be
for the account of the shipowner in the form of indemmnity;
(c) if there should be several charter parties, and due to lack of space, preference shall be
given to the person who is first in loading his cargo;
(d) the shipowner may effect a substitution in respect of the vessel so long as the substitute
vessel had been duly inspected and seaworthy;
(e) after three-fifths of the vessel is loaded, the shipowner may not substitute the chartered
vessel, unless he procures the consent of the charterers;
(f) the captain may not, if the vessel has been chartered in whole, accept cargo from any
other persons unless the consent of the charterer is obtained;
(g) the shipowner may also be generally held liable for damages incurred by the charterer
due to the voluntary delay of the captain in putting to sea.
A shipowner may ask for rescission of the charter party in the case the owner sold the
vessel before the charter has begun to load the vessel. However, the charterer may recover
damages to the extent of its losses.
B. Charterer
The rights and obligations of the charterer may be summarized as follows:
(a) the charterer shall have the right to subcharter the vessel to a third person only if he is
authorized by the owner;
(b) a charterer who loads goods different from that contracted upon, without the knowledge
of the shipowner or captain, or which results to damage shall be liable to indemnify the
parties injured thereby;
(c) should illicit cargo be shipped by the charterer with the knowledge of the shipowner or
captain, the said charterer shall be jointly liable with the shipowner for all damages caused
to other shippers;
(d) the charterers and shippers may not abandon the goods damaged due to inherent
defects or fortuitous events.
IX. EFFECT OF BILL OF LADING
If a bill of lading was issued by the shipowner to the charterer, the charter party still
governs their rights and the bill of lading may be used as proof of receipt of the goods.
CHAPTER 10
LOANS ON BOTTOMRY AND RESPONDENTIA
CHAPTER 11
AVERAGES
I. AVERAGES IN GENERAL
Art. 806 of the Code of Commerce considered averages as:
(a) all extraordinary or accidental expenses which may be incurred during the voyage in
order to preserve the vessel, the cargo, or both;
(b) any damages or deteriorations which the vessel may suffer from the time it ppputs to
sea from the port of departure until it casts anchor in the port of destination, and those
suffered by the merchandise from the time they loaded in the port of shipment until they
are unloaded in the port of their consignment.
Petty or ordinary expenses incident to navigation shall be considered ordinary expenses to
be defrayed by the shipowner, unless there is an express agreement to the contrary.
II. SIMPLE AVERAGE
Simple average include all the expenses and damages caused to the vessel or to her cargo
whci have not inured to the common benefit and profit of all the persons interested in the
vessel and her cargo.
Since simple or particular averages do not inure to the common benefit, the owner of of the
goods that suffered the damage bears the loss.
e.g. losses suffered by the cargo either on account of inherent defect of the goods or by
CHAPTER 12
COLLISIONS
I. CONCEPT
Collision as applied to Maritime Commerce, is an impact or sudden contact of a vessel with
another whether both are in motion or one stationary.
Zones of collision:
(a) all the time up to the moment when the risk of collision may be said to have begun.
Within this zone, no rule is applicable because none is necessary
(b) the time between the moment when risk of collision begins and the moment when it has
become a practical certainty. The burden is on the vessel required to keep away and avoid
the danger
(c) the time between the moment of actual contact. The rule is that the vessel which has
forced the privileged vessel into danger is responsible even if the privileged vessel has
committed an error within that zone
II. APPLICABLE LAW
Liabilities of shipowners and ship agents as well as the captain or crew in collision cases is
governed by the provisions of the Code of Commerce on Collision.
III. RULES ON LIABILITY
Although the liability with respect to collision is not governed by quasi-delict, liability in
collision cases are still negligence based.
In the determination of negligence, the same test of reasonable man in the position of an
expert that applies in quasi-delict. In some respect, however, the rules that apply to quasidelict cannot be applied in collision cases. For example, the view is that the doctrine of last
clear chance and the rule on contributory negligence cannot be applied in collision cases.
If two vessels collided each other due to fault imputable to both, each vessel must bear its
own damages, and both shall be solidarily responsible for the losses and damages
CHAPTER 13
ARRIVAL UNDER STRESS AND SHIPWRECKS
CHAPTER 14
SALVAGE
I. GOVERNING LAW
The law that governs salvage in this jurisdiction is Act No. 2616, otherwise known as the
Salvage Law.
II. DEFINITION AND CONCEPT OF SALVAGE
Salvage a service which one person renders to the owner of a ship or goods, by his own
labor, preserving the goods or the ship which the owner or those entrusted with the care of
them have either abandoned in distress at sea, or are unable to protect and secure.
Salvage is founded on equity of remunerating private and individual services performed in
saving, whole or in part, a ship or its cargo from impending peril, or recovering them after
actual loss.
Kinds of salvage services:
(a) voluntary, wherein the compensation is dependent upon success
(b) rendered under a contract for a per diemor per horam wage payable at all events
(c) under a contract for compensation payable only in case of success
III. CLAIM FOR VALID SALVAGE AND ITS ELEMENTS
(a) there must be a marine peril
(b) the service is voluntarily rendered and is not required as an existing duty or from special
contract
(c) and, there must be success in whole or in part or that the service rendered contributed
to such success
Additionally, Section 1 of the Salvage Law makes clear of requirement that
(d) the vessel is shipwrecked beyond the control of the crew or shall have been abandoned
Under Section 8 of the law, the following persons shall have no right to a reward:
(a) the crew of the vessel shipwrecked or which was in danger of shipwreck
(b) he who shall have commenced the salvage in spite of opposition of the captain of of his
representatives
(c) he who shall have failed to comply with the provisions of Sec. 3 of the Salvage Law.
A. Abandonment
The requirement of section 1 of the salvage Law that the vessel sought to be salvaged is
shipwrecked beyond the control of the crew or abandoned, is present when the vessel is
considered a derelict.
IV. BASIS FOR ENTITLEMENT TO SALVAGE REWARD
A salvage reward should neither be too liberal nor too stingy. It should constitute a sufficient
compensation for the outlay and effort of the salvors.
V. RIGHTS AND OBLIGATIONS OF SALVORS AND OWNERS
The salvor is of course entitled of compensation for services rendered, and in the
enforcement of that right, he has, under the Salvage Law, a lien upon the property salvaged
whereby he is not bound to part with the possession of the vessel salvaged or of the cargo
saved until he is paid his due compensation.
When a vessel is found at sea, deserted, and has been abandoned by the master and crew
without the intention of returning and resuming possession, she is, in the sense of the law,
derelict, abandoned, and the finder who takes possession with the intention of saving her
gains a right of possession which he can maintain against the true owner.
On the other hand, the owner of the vessel which is a derelict, does not renounce his right
to the property. There is no presumption of an intention to abandon such property rights.
What the owner abandons temporarily is his right of possession, which is thereby
transferred to the salvor who becomes bound to preserve the property with good faith and
bring it to a place of safety for the owner's use.
In Sec. 3 of the Salvage Law, the salvor shall convey and deliver the vessel or merchandise
as soon as possible to the collector of customs, if the port has a collector, and otherwise to
the provincial treasurer or municipal mayor.
If the owner does not make any claim within 3 months after the publication by the
authorities of a salvage report, the thing saved shall be sold at a public auction, the
proceeds shall be deposited in the National Treasury after deducting the expenses and the
proper reward to which the salvor is entitled.
CHAPTER 15
CARRIAGE OF GOODS BY SEA
I. HISTORY
COGSA was originally passed by the Congress of the United States on April 16, 1936 as
Public Act. No. 521. It was later adopted on October 22, 1936 through Commonwealth Act
No. 65.
II. EXTENT OF APPLICATION
When the New Civil Code took effect on August 30, 1950, the said Code became the primary
law on carriage of goods by sea.
Nevertheless, the COGSA remains to be a suppletory law for such type of transportation
international shipping.
III. THE LAW
The most important provisions of COGSA were already discussed and cited in the earlier
chapters.
The term goods includes goods, wares, merchandise, and articles of every kind
whatsoever, except live animals cargo being carried on deck.
PART III
PUBLIC UTILITIES
CHAPTER 16
PUBLIC SERVICE REGULATIONS
I. CONCEPT
Public Utility business or service engaged in regularly supplying the public with some
commodity or service of public consequence such as electricity, gas, water, transportation,
telephone or telegraph service.
As such, public utility services are impressed with public interest and concern, hence they
cease to juris privati only.
The term public service is therefore included in the broad concept of public utilities.
Section 13 of the Public Service Act provides the definition of public service as the term
which includes every person that now or hereafter may own, operate, manage, or control
in the Philippines, for hire or compensation xxx and done for general business purpose any
common carrier xxx.
II. REGULATORY AGENCIES
(a) Dept. of Transportation and Communication for operation of national railroad carriers
(b) Land Transportation Franchising Regulatory Board (LTFRB) land transportation
(c) The Land Transportation Office (LTO) registration of drivers and motor vehicles
(d) Maritime Industry Authority (MARINA) water transportation
(e) Philippine Coast Guard safety in water transportation
(f) National Telecommunications Commission communication utilities and services
(g) Energy Regulatory Board electric or power companies
(h) National Water and Resource Council water resources
(i) Civil Aeronautics Board air transportation
(j) The Air Transportation Office maintenance and operation of airports; registers aircrafts;
provides safety regulations in air transportation
(k) Philippine Ports Authority wharves and ports
CHAPTER 17
POWERS OF THE ADMINISTRATIVE AGENCIES
etc.
III. LAND TRANSPORTATION OFFICE
The law that governs registration of motor vehicles in the Philippines is republic Act No.
4136, otherwise known as the Land Transportation and Traffic Code (as amended) which
was enacted on June 20, 1964. The Code provides that the Land Transportation Commission
shall control as far as they apply, the registration and operation of motor vehicles and the
licensing of owners, dealers, conductors, drivers, and similar matters.
The main functions of LTO are:
1. inspection and registration of motor vehicles
2. Issuance of licenses and permits
3. enforcement of Land Transportation Rules and Regulations
4. adjudication of traffic cases
IV. CIVIL AERONAUTICS BOARD
The CAB as mandated under republic Act No. 776 and amended by PD No. 1462 is the
agency charged with the power to regulate the economic aspects of air transportation in the
Philippines. It shall have the general supervision and jurisdiction over air carriers as well as
their properties, property rights, equipment, and franchise.
V. AIR TRANSPORTATION OFFICE
The Air Transportation Office through its Air Safety Division has the following main
functions:
1. establishes minimum safety standards on the operating methods, flight operations and
maintenance activities of foreign and domestic carrier;
2. issues certificate of registration and airworthiness of aircraft; air carrier operating
certificate, air agency certificates, and certificate of airmen licenses.
There are two(2) services in the Air Transportation Office:
1. Airways Navigation Service
2. Air Traffic Service
VI. MARITIME INDUSTRY AUTHORITY
The powers of the MARINA as defined under EO No. 125 as amended by EO No. 125-A are:
develop and formulate plans, policies, programs, projects, standards, promotions and
development of the maritime industry
establish, prescribe and regulate routes, zones and/or areas of operations of particular
operators of public water services
issue certificate of public convenience for the operation of domestic and overseas water
carriers
register vessels as well as issue certificates, licenses or document necessary or incident
thereto
undertake the safety regulatory functions pertaining to vessel construction and operation
enforce laws, prescribe and enforce rules and regulations, including penalties for violations
thereof, governing water transportation and the Philippine merchant marine
undertake the issuance of license to qualified seamen and harbor bay river pilots
etc.
VII. PHILIPPINE COAST GUARD
PD No. 601 issued on Dec. 09, 1974 otherwise known as the Revised Coast Guard Law of
1974 provides the objectives and basic functions of the Philippine Coast Guard. However,
this is subject to the changes brought about by EO No. 125 and EO No. 125-A and other
special laws.
The objectives and powers of the Coast Guard are found in Sec. 2 and 5 of PD No. 601
which provide as follows:
enforce or assist in the enforcement of all applicable laws upon the high seas and
territorial waters of the Philippines
enforce laws, promulgate and administer regulations for the promotion of safety of life and
property within the maritime jurisdiction of the Philippines
develop, establish, maintain and operate with due regard to the requirements of national
defense aids to maritime navigation for the promotion of safety on and over high seas and
territorial waters of the Philippines
etc.
VIII. PHILIPPINE PORTS AUTHORITY
PD No. 857 issued in Dec. 1975 organized the Philippine Ports Authority. The law recognized
the need to integrate and coordinate port planning, development, control and operations at
the national level, and at the same time promote the growth of regional port bodies
responsive to the needs of their individual localities.
IX. NATIONAL TELECOMMUNICATIONS COMMISSION
The NTC is the government agency created under EO No. 546 and conferred with regulatory
and quasi-judicial functions.
Primarily, the NTC is the sole body that exercises supervision, adjudication and control over
telecommunications services. It adopts and promulgates guidelines, rules, and regulations
relative to the establishment, operation and maintenance of various telecommunications
facilities and services nationwide.
NTC remains under the administartive supervision of the Department of Transportation and
Communication as an attached agency. However, with respect to its quasi-judicial functions,
NTC's decisions are appealable only and directly to the Supreme Court.