Transportation: movement of persons or things from one place to another
by land, water or air. Includes waiting time, loading/ unloading, stopping
in transit & all other accessorial services
ART. 1766
GOVERNING LAWS
1. New Civil Code
2. Code of Commerce
3. Special Laws
(ART.1732)
COMMON CARRIER
1. Engaged in the business of
carrying or transporting
goods or passengers
a) Whether as principal
or ancillary business
b) Whether on
regular/scheduled basis
or occasional/
unscheduled basis
2. Offers its services to the
public
a) Whether to the
general population
b) Narrow segment of
the general population
3. For compensation or fixed
price or rate
4. Control of operation/ cargo
CPC not a requisite
to incur liability
Pipeline concession/
operator engaged in
the business of
petroleum products is
a common carrier
Atty. Abao notes + Perez
COMMON CARRIER: TRANSPORTATION OF GOODS Edited by Advincula, delos Reyes & Gruba
ART. 1733 ART. 1735 ART. 1734 ART. 1739-1743 ART. 1744-1752
EXTRAORDINARY LOSS, DETERIORATION DEFENSES EXEMPTING CONDITIONS TO AVAIL STIPULATION LIMITING
DILIGENCE/ OR DESTRUCTION OR MITIGATING OF DEFENSES LIABILITY
RESPONSIBILITY LIABILITY
1.Requisites
1. To transport with greatest 1. Natural disaster like flood, 1.a) proximate and only a) In writing
skill & utmost foresight storm, earthquake, lightning cause b) With valuable
PRESUMPTION OF Fire not included consideration other than the
2. Utmost vigilance of very NEGLIGENCE b) Exercise of diligence to services of the common carrier
cautious person, according to prevent or minimize loss c) Reasonable, just and not
all circumstances 1. Not conclusive but 2. Act of public enemy in c.) must not be in delay contrary to public policy
disputable presumption war, whether international or
(ART. 1736-1738) civil 2. Void stipulation
DURATION OF 2. May be overcome by 2.same as in #1 (above) a) Unreasonable
EXTRAORDINARY contrary evidence of 3.act or omission of owner or b) Unjust
RESPONSIBILITY defenses shipper of goods c) Contrary to public policy
3.a) if proximate cause:
1. From the time goods are (ART 1753) exempting 3. Valid stipulation
unconditionally placed in b) If contributory a) Limited to value of goods
possession of and received Law of the country of 4.character of goods or defect negligence: mitigating appearing in bill of lading
by common carrier for destination shall govern in the packing or container
transport until actual or liability of common carrier Must not be known to 4.exercise due diligence to b) Fixed sum that is
constructive delivery to for loss, destruction, or the carrier or apparent forestall or prevent loss reasonable and just and
consignee or person with deterioration agreed upon
right to receive 5.order or act of competent
public authority 5. With power to issue the c) Delay due to strike or riot
2. Even when goods are order
temporarily unloaded or 4.Factors to be considered:
stored in transit unless a) Refusal to carry goods
shipper used right of unless stipulation limiting
stoppage in transit liability is signed by shipper
3. Even during time of b) Delay or deviation
storage at warehouse of
common carrier at place of c) Lack or presence of
destination until consigner is competition
advised of goods arrival and
has had opportunity to Doctrine of Limited Liability:
remove/ dispose of them when loss of vessel was not due
to fault/ negligence of
Private carrier: without making it a vocation or holding shipowner, liability is limited to
himself out to the public as ready to act for all who its pro rata share in insurance
desire his services, undertakes by special agreement in proceeds.
a particular instance only, to transport property either
gratuitously or for hire
Test: If open to the public, the carrier is common,
otherwise private (example: exclusive contractor,
bareboat charter)
1
 Atty. Abao notes + Perez
TRANSPORTATION OF PASSENGERS Edited by Advincula, delos Reyes & Gruba
ART. 1733, 1755 JURISPRUDENCE ART. 1756 ART. 1757,1758 ART.1761, 1762 DEFENSES

EXTRAORDINARY CONTRACT OF DEATH OR INJURY TO LIMITATION OF DUTY OF 1.exercise of

DILIGENCE CARRIAGE
1.to carry passengers A. Commencement
safely as far as human
care and foresight can 1.Liberal view: when a
provide person offers to be
transported, placing
2.using utmost himself in the care and
diligence of a very control of the common
cautious person carrier who accepts him
as such passenger
3.with due regard for
all the circumstances 2.Strict view: there is
actual boarding or
NOT INSURER OF placing of a part of the
ABSOLUTE SAFETY passengers body in the
vehicle.
The common carrier is
not required to B. Termination
exercise all the care,
skill or diligence the When the passenger
human mind can alights from the vehicle
conceive nor free the at the place of
passenger from all destination and has
possible risks reasonable opportunity
to leave the common
PASSENGER carriers premises
One who travels in a
public conveyance by
virtue of an express or Commencement in air
implied contract with transportation: when airline
the common carrier, issues a ticket and confirmed
it for a particular flight on a
paying fare or what is certain date
the equivalent thereof
PASSENGER LIABILITY* PASSENGERS extraordinary diligence by
common carrier
1.liability cannot be 1.to observe ordinary
dispensed or lessened by diligence to avoid injury 2.negligent act of the
PRESUMPTION OF posting of notices, statements to himself passenger is the proximate
NEGLIGENCE on tickets or otherwise cause of death or injury
2.contributory
Disputable and may be overcome 2.gratuitous carriage: negligence of passenger 3.employees could not
by proof of exercise of stipulation to limit liability does not bar recovery of have prevent by ordinary
extraordinary diligence may be valid but not for damages but reduces diligence the willful act or
willful act or gross amount thereof negligence of other
ART. 1759, 1760 negligence passengers or stranger
Not liable for simple negligence
ART. 1763 which caused the injury or
NON-EXEMPTING OR NON- death
LIMITING ACTS OF CO-
3.reduced fare does not PASSENGERS OR 4.liability is mitigated b
1.common carrier is liable due to justify limiting liability STRANGERS the contributory
negligence or willful act of negligence of passenger
employee, even if done beyond * for safety of passengers 1.common carrier is of his failure to observe
scope of authority or in violation of responsible in case of ordinary diligence to
orders death or injury on avoid injury
account of willful act or
2.liability does not cease with negligence of other 5.stipulation to limit
exercise of ordinary diligence by passengers or strangers liability is valid in
common carrier gratuitous carriage, if no
willful act or gross
3.liablity is not eliminated or If employees could have negligence by common
limited by stipulation, posting of stopped or prevented the carrier
notices, statements on tickets act or omission by
Explosion of new tire: NOT
exercise of ordinary fortuitous event
diligence

Children who do not

pay fare are considered
passengers when riding
with another who has
paid for a fare

2

ART.358, 370-71
TIME TO DELIVER
1.when no period fixed:
carrier must forward
goods in the first
shipment of same or
similar goods
2.when period fixed:
carrier must deliver goods
within time fixed
DELAY IN DELIVERY
In case of delay, the
carrier is liable for:
1.indemnity stipulated in
the bill of lading
2.if no stipulation,
damages due to delay
which may not exceed the
current price of the goods
on the day and place of
destination
3.special damages like
unrealized profit, if
carrier foresaw or had
notice of circumstances
leading to the probable
occurrence of such
damage
4.full value of goods, if
consignee should exercise
abandonment of the
goods by advising carrier
accordingly prior to
arrival at destination
5. where common carrier
incurs in delay, a natural
disaster shall not free such
carrier from responsibility,
thus liable for damages
CODE OF COMMERCE: TRANSPORTATION OVERLAND
ART.359, ART.363-365 ART.366,
JURISPRUDENCE JURISPRUDENCE
ROUTE DELIVERY CLAIM/SUIT
PARTIAL/DEFECTIVE
1.if route agreed upon, carrier Purpose of following
may not change it unless by The carrier must deliver the requirements so carrier can
reason of force majeure; goods in the dame condition check validity of claims while
otherwise, carrier is liable for and quantity in which they were facts are still fresh and
losses suffered by goods and received, according to the bill documents still available.
for indemnity stipulated of lading.
1.when damage is ascertainable
2.if no agreed route, carrier 1.in case of partial delivery, from the outside part of the
must select shortest, least consignee may refuse to receive package, the claim must be
expensive and practically those delivered if they cannot made at the time of receipt
passable route (Art.1747) be used independently of those
not delivered Verbal claim made
immediately is sufficient
compliance by law
2.if the goods delivered were
rendered useless for sale or
consumption, consignee may 2.when the damage is
refuse to receive ascertainable only by the
opening of package, the claim
3.if the goods delivered are must be made within 24 hours
damaged to such an extent that following receipt (longer
their value is diminished, period may be stipulated)
carrier must pay the difference
in value as judged by experts 3.in both cases, the claim must
be made before payment of
In the first 2 cases, consignee transportation charge
may exercise abandonment and
be entitled to full value of 4.a provisional claim need not
goods. state in detail list of goods lost
or damaged, so long as carrier
can make reasonable
verification
5.claim is condition precedent
to right of action which must
be filed within 1 year from
delivery of goods or denial of
claim
6.sufficient and reasonable
shorter period may be
stipulated in the bill of lading
*there must be delivery/
receipt by the consignee
(New Zealand vs. Joy)
ART. 368,369
MISDELIVERY/ NON-
DELIVERY
The carrier must deliver the
goods to the consignee or the
legitimate holder of the bill of
lading.
1.the shipper may order the
return or retention of the goods
by the carrier, prior to
appearance of consignee or
legitimate holder of bill of
lading.
2.the carrier is liable for
damages if it delivers to the
wrong person (misdelivery)
3.if the carrier makes no
delivery or refuses to deliver
(non-delivery), the consignee
may sure for conversion and
damages
4.if the consignee cannot be
found in the place indicated in
the bill of lading or refuses to
pay transportation charge or to
receive goods, the carrier may
deposit the goods in its
warehouse r the court; such
deposit has the legal effect of
delivery
Claim not condition precedent
to action, which must be filed
within 4 years if no written
contract, 10 years if written
contract.
ART. 373
MULTI-CARRIERS
This refers to an
arrangement where
several carriers
successively transport the
goods or by a single
through bill of lading
issued by a carrier and
honored by other carriers.
1.in transportation of
goods by successive
carriers, the last carrier
assumes the obligation of
the previous carriers.
2.but the last carrier, if
not directly responsible
for the loss or damage,
may proceed against the
previous carriers.
3.shipper/consignee has
right of action against
carrier who executed
transportation contract or
the other carriers who
received goods without
reservation.
4.carriers with
reservation are not
relieved of
responsibilities for their
own acts
3

Vessels
A. Definition
1. Those with motive power
2. Means of water
transportation (PD 474)
*Refer solely to merchant ships,
engaged in transportation of
passengers and freight from one port
to another, or one place to another
B. Excluded
exempted from licenses
1. Local and foreign military
vessel
2. Bancas and other
watercrafts of less that 3 tons
gross capacity (PD 474)
3. Small watercrafts engaged
in river and bay traffic (art 835)
4. Yachts etc exclusively for
pleasure and recreation
C. Classified as personal
property ownership of which to
be recorded in registry vessels
D. Warranty of seaworthiness
1. Equipped for the voyage
and manned with sufficient
number of competent officers
and crew (Caltex vs. Sulpicio)
2. Shipper and passenger not
required to inquire into vessels
seaworthiness, genuineness of its
licenses and compliance with
maritime laws.
3. Vessel must be seaworthy
at the start of voyage; carrier not
liable if unseaworthiness occurs
later due to fault of shipper or
passenger
*right to freightage if vessel sold
1. during voyage: buyer
2. after voyage: seller
3. agreement of parties
Atty. Abao notes + Perez
VESSELS / PERSONS IN MARITIME COMMERCE Edited by Advincula, delos Reyes & Gruba
Shipowner/Agents Captain/masters Officers Passengers
A. Ship agents (may be shipowner; not a civil agent) A. Captain of big vessel for high A. Officers must be duly A, Refund due to voyage
1. Entrusted with provisioning vessel; seas or coastwise trade, master for licensed (PRC and suspension or interruption
2. Represents vessel in port where she is (Art 586) smaller vessels for coastwise Marina)
3. Represents shipowner in judicial/extrajudicial act (Art 595) trade 1. If due to fault of
*husbanding agent: general agent of the owner with
B. Officers include the captain or ship agent,
powers to engage the vessel for general freight and the B. Qualifications following passenger has right to
usual conditions settles freight and adopts averages with 1. Filipino Citizen 1. Sailing mate refund of fade and to
the merchants 2. With skill and capacity to 2. Second mate damages
B. Civilly liable for: command and direct vessel 3. Third mate
1. Acts and obligations of captain contracted to repair, equip 3. Duly licensed by Marina 4. Marine engineer 2. If due to force
and provision the vessel (586) (609, 882) majeure or fortuitous
2. Indemnities arising from conduct of captain in the care of event only return fare
goods and passengers carried by the vessel (587) C. Civilly liable for Supercargoes or part thereof in
3. Obligations contracted by captain even exceeding his powers 1. Damage to vessel due to proportion to distance
and privileges provided made for the benefit of the vessel (588) lack of skill and negligence In maritime law a person traveled before
if vessel does not benefit, agent/ owner not liable 2. Theft, robberies, mutiny by specially employed by the interruption (697)
4. Damages in case of collision by reason of the fault crew owner of the cargo to take
negligence or lack of skill of captain or any member of the 3. Abuse of power charge of and sell B. Baggage
complement 4. Unjustified deviation merchandise which have 1. Passenger is considered a
5. Has obligation to pay taxes due from the shipowner 5. Losses fines and been shipped in purchase shipper in so far as the
confiscation imposed due to returning cargoes and to goods he carries on board
C. Doctrine of limited liability and right of abandonment (art 587, violation of laws and regulations receive freight as he may
590, and 837) (618-620) be authorized. (647-651) 2. Insofar as the goods in
1. Because of real and hypothecary nature of maritime law, the immediate custody of
- Take charge and sell
liability of the shipowner agent is limited to value of vessel D. Defense of Force Majeure the passenger, the captain is
- Purchase returning cargo
equipment and freight earned during the voyage 1. Proximate and ONLY - Receive freight not responsible, unless the
2. Shipowner/ agent may exempt themselves from liability by cause damage arises from his act
abandoning, vessel, equipment, freight 2. Due diligence to prevent or or the crews (703)
*abandonment cannot be exercised by charterer minimize loss if baggage is not with the
3. Creditor cannot refuse offer of abandonment 3. No delay passenger, CC must exercise
when limited liability cannot apply rule on
4. Protest within 24 hours extraordinary diligence
D. Doctrine not applicable common carrier will not apply; common carrier marine protest: written statement under oath, made by the
presumed negligent unless proved to have exercise master of vessel after occurrence of an accident or disaster
extraordinary diligence
in which the vessel or cargo is loss or injured with respect
1. Where the shipowner or agent are at fault or concurrently to the circumstances attending the occurrence should be
negligent with captain made within 24 hrs following the arrival in the destination
2. Where shipowner allows his vessel to embark in an 5. always liable and no
agreement to the contrary being
unseaworthy condition
valid for those arising through its
3. Where vessel is insured own fault
4. Workmans compensation act
5. voyage not maritime but only in river bay or gulf
6. expenses for equipping, provisioning, repairing vessel
7. Vessel is private carrier
4

A. Averages are:
1. All extraordinary or
accidental expenses
incurred during the voyage
for preservation of the
vessel and or cargo
2. All damages and
deterioration suffered by
vessel from departure to
arrival and by goods from
loading to unloading (806)
And those suffered by the
goods from the time they
are loaded until they are
unloaded in the port of
their consignment
B. Kinds
1. Simple or particular: all
expenses and damages
caused to vessel or cargo,
which have not incurred to
the benefit and common
profit of all persons
interested in the vessel or
cargo (809). Liable the
owner of the goods which
gave rise to the expense or
suffered the damage (810)
2. General or gross- all the
damages and expenses
which are deliberately
caused in order to save the
vessel and cargo from real
and known risk (811)
C. Elements of gross
Average
1. Common danger
2. Arising from accidents of
sea, disposition of authority
DAMAGES AND ACCIDENTS IN MARITIME COMMERCE
Averages
3. Peril imminent and
ascertained
4. Part of vessel or cargoes
deliberately sacrificed
5. Successful saving of
vessel or cargo
6. Proper legal steps and
authority taken
D. Effect: all persons with
interest in the vessel and
cargo saved shall contribute
(812). Ex: total loss of
vessel and cargo 10M,
broken down as follows:
Vessel: 5M
Cargo1: 2M
Cargo 2: 2M
Cargo 3: 1M
Cargo 3 is jettisoned to
lighten vessel during storm.
Vessel and cargoes 1 and 2
saved. They must contribute
as follows:
Vessel (50%): 500k
Cargo 1(20%): 200k
Cargo 2(20%): 200k
The balance of 100k is
Cargo 3s contribution
E. Proper legal step and
authority
To incur expenses and
cause damage of general
average there must be a
resolution of the captain
after deliberations with
other officers and after
hearing of person present
interested in cargo (813)
If persons interested in the cargo
are not heard, they shall not
contribute to the gross average,
their share charged to the captain
unless, the urgency of the case
should be such that the time
necessary for previous
deliberation was wanting
F. Entitlement:
1. To be entitled to
indemnity of gross average,
owner of cargo must prove
its existence by means of
inventory
2. Claims for averages must
exceed 5%* of the interest
in the cargo or in the vessel.
In the forgoing example,
only the portion of Cargo 3
worth P10, 000 is
jettisoned. This is only 1%
of the total value of P1,
000,000 of cargo 3 and
hence it owner is not
entitled to indemnity.
*5%: for general average
1% for particular average
(or more to be admissible)
Arrival under Stress
A. Meaning
Arrival of the vessel at the
nearest most convenient port
when captain believe the
vessel cannot continue the
voyage to the port of
destination (Art. 819)
Once cause of arrival under
stress ceases, captain mist
continue voyage, otherwise he
is liable for damage caused by
delay (825)
B. Justification
1. Lack of provisions (not due
to negligence or failure to take
necessary provision)
2. Well founded fear of
seizure by pirates (manifest
and based on positive and
justifiable facts
3. Accident disabling vessel to
navigate
4. Damage to vessel not
caused by malice, negligence,
want of foresight of lack of
skill of captain (Art. 820)
losses and damage suffered by
Atty. Abao notes + Perez
Edited by Advincula, delos Reyes & Gruba
Collision/ Allision Shipwrecks
A. Definition A. Meaning
Collision is the impact of When a vessel is damaged
two moving vessels; allision rendering her unable to navigate or
is the striking of a moving when the vessel is lost at sea
vessel against a stationary
one B. Liability
1. Generally each owner whether of
In the case of risk of the vessel or cargo shall bear his
collision, each vessel must own loss
alter course to starboard 2. If shipwreck or stranding caused
(right) so as to pass on the by malice, negligence or lack of
portside (left) of the other skill of captain or vessel was
vessel (Rule 18, International insufficiently repaired and equipped
Rules of the Road) ships agent and or shipper may
demand indemnity from the captain
B. Liability Maritime Protest
1. If collision due to force
majeure or fortuitous event
each vessel and its cargo
liable for its own damage
(Art. 830)
2. If collision due to fault
negligence or lack of skill of
captain or any member of the
vessels complement, owner
of vessel at fault should
indemnify
3. If both vessels at fault each
shall suffer its own damage
and be solidarily liable for
their cargoes
4. Owner of a vessel is liable
if it caused another vessel to
collide with a third vessel
5. Doubtful collision same as
#1 (above) C. Condition Precedent for
recovery of damages/losses
Doctrine of Inscrutable Fault: maritime protest under oath by the
impossible to determine to captain within 24 hours before
whom collision is attributable
competent authority where collision
took place or at first port arrival
(Art. 835)
5
Not indispensible for
Atty. Abao notes + Perez
perfecting contract of
Edited by Advincula, delos Reyes & Gruba
carriage, only CONTRACTS IN MARITIME COMMERCE (A)
meeting of the mindsBILL OF LADING ELECTRONIC B/L CHARTER PARTY BOTTOMRY OR RESPONDENTIA
A. Definition A. Advantages of paper B/L A. Meaning A. Loan on Bottomry
A written acknowledgment of the receipt of the 1. Avoids delay A contract by which the shipowner or agent leases 1. shipowner borrows money for use
goods, their quantity and condition, and an 2. Prevents fraud; alteration, for a price certain the whole or a portion of the equipment or repair of vessel
agreement to transport and deliver them at a forgery and counterfeiting vessel for the transport of goods or persons from 2. for a definite terms and with extraordinary
specific place to a person name or on his order. It is B. Necessitated by: one place to another interest called premium
signed by the captain and shipper and furnished to 1. Containerization 3. secured by pledge of vessel or portion
the consignee (706) 4 copies of original bill of lading
2. Computerization, electronic B. Kinds thereof
shall be made, signed by the (EDI) 1. Contract of affreightment: the shipowner retains 4. loan repayment depends or conditioned on
B. Functions: captain & shipper. Entitled: the possession command and navigation of the safe arrival of vessel
1. Receipt of goods shipper, consignee, captain and C. Electronic commerce Act provides for vessel while the charterer merely uses the vessel or 5. obligations to repay is extinguished if
2. Contract of carriage ship agent the legal recognition and admissibility a space therein for a fixed price at a fixed time or vessel is lost due to specified perils in the
3. Documents of title as evidence of electronic data for a single or consecutive voyage course of voyage ) art 719)
messages and electronic data messages Liable for damages: shipowner
C. Kinds and electronic documents, so long as a. time charter: for a particular period or time B. Loan on respondentia
1. Negotiable: gods to be delivered to the bearer or they can be authenticated by electronic b. voyage charter: hired for one or series of 1. same as above except that what is pledged
to the order of the person named; signature. Holder of the BL is the voyages is the goods ;
Non Negotiable: goods to be delivered to the holder of the private keys and can 2. loan repayment depends on safe arrival of
person named claim delivery of goods transfer his 2. Bareboat or demise charter: the charterer mans goods and obligation to repay is extinguished
2. Clean: goods received in good condition and or rights to another and substitute or the vessel with his own people and becomes in if pledged goods lost
correct quantity terminate the nominated consignee. effect the owner of the vessel for the voyage or
Foul: good received in bad condition and or service stipulated. Liable for damages: charterer C. No loan on bottomry on wages of the
short quantity D. E-documents may now be used in crew or profit expected (731)
3. Through: issued by first carrier and honored by furnishing the marks, number and weight C. Definitions:
the successive carrier of goods, in stating or declaring the 1. Laydays: stipulated period for the loading or D. Loss for the last voyage shall have
4. On board: goods received on board the vessel nature or value of goods; issuing a unloading of a vessel preference over prior ones (730)
which will transport the goods receipt for goods; confirming the loading 2. Extra lay days- days of delay beyond lay days
Received shipment: good received for shipment of goods; claiming delivery of goods; 3. Customary quick dispatch: reasonable period for
with or without specifying the vessel which will authorizing release of goods; giving the loading or unloading according to the custom E. Cause of loss must be marine peril (731)
transport the goods notice of loss of or damage to goods; or usage of the port
undertaking to deliver the goods; 4. Demurrage: fixed remuneration to the owner of F. Total loss of collateral extinguishes the
D. Jurisprudence undertaking to deliver the goods to the vessel for its detention beyond the lay days or same if arose from accident of the sea at the
1. A bill of lading when properly executed and named person or a person authorized to extra lay days time & during the voyage, and proven, cargo
delivered to a shipper is evidence that the carrier claim delivery; granting acquiring 5. Dead weight: cargo which the charterer fails to was on board, exception:
1. loss due to inherent defect of thing
received the goods described therein for shipment renouncing, surrendering, transferring or load in the vessel or payment made by the charterer
2. loss due to the fault/ malice of owner
negotiating. (Sec 25, ECA RA 8792) to the shipowner for the portion of the vessel 3. loss due to barratry of captain
2. Acceptance of bill of lading without dissent chartered but not occupied 4. engaged in contraband
raises the presumption that all terms therein were 6. Primage: small allowance for compensation 5. goods loaded different from that said in the
brought to the knowledge of the shipper and agreed payable to the master/ owner of the vessel for the contract, unless force majeure
to by him and in the absence of fraud or mistake, he use of cables & ropes to discharge the goods
is estopped from denying that he assented to such
terms D. Terms Cargo/ goods may be sold by the court at the
1. CQD instance of the captain:
3. A bill of lading is an actionable document, which 2. WWDSHINC 1. consignee cannot be found or refuses to
must be properly pleaded and the genuineness and 3. WWDSHEX-EIU receive
due execution thereof are deemed admitted unless 4. WWDSHEX-UU 2. sale is necessary to pay freight and other
specifically denied by the adverse party. expenses
Obligation of the captain when vessel becomes 3. goods run the risk of deteriorating
Captain obliged to issue new B/L if previous unseaworthy during voyage is to charter at his
ones lost, provided that security for the value expense another one in good condition to carry
of the cargo is given to his satisfaction,
without changing the consignment
the cargo to its destination. 6

MULTI-MODAL TRANSPORT
A. International Trade
Transportation of goods is by more than one
carrier or mode of transportation.
Containerization enhanced transport
capabilities in the transfer of goods from ship
to truck, plane, or another ship
B. Definition
Multi-modal transport operator (MTO) means
any person who concludes a multi-modal
contract and assumes responsibility for the
performance thereof by a carrier
Multi-modal transport contract means a single
contract for the carrier of goods by at least 2
different modes of transport
Considering the variety of cultures, languages
and commercial practices of both end of the
trade, it is reasonable to let one qualified
operator organize and be responsible and
accountable for the entire transport chain.
Atty. Abao notes + Perez
SPECIAL LAWS IN TRANSPORTATION (B) Edited by Advincula, delos Reyes & Gruba
FREIGHT FORWARDING ARRASTRE/ STEVEDORING CONTRACT OF TOWAGE
A. Forwarding Agent A. Definition A. Definition
It received and arranges to forward and send Stevedoring refers to the handling of the cargo A contract for the hire of services by which a
the goods to their destination by the in the holds of the vessel or between the ships vessel is hired to tow another vessel from one
instrumentality of the actual carrier, without tackle and the holds of the vessel. port to another for a consideration
assuming the role and responsibility of the
carrier, and is compensated for his services by Arrastre refers to the handling of cargo on the Not a contract of carriage of goods, or a
the shipper. He is an agent and a wharf or between the establishment of the charter party, but a contract of hire of
warehouseman for the shipper, and must consignee or shipper and the ships tackle. services
exercise the care and diligence of a prudent
man B. Entitled
B. Freight Forwarder Only the owner of the towing vessel can ask
for compensation for the towage. Not the
A transport intermediary which publishes its captain, even if the owner waived the claim for
own tariff, issues its own bill of lading and towage, unless the owner assigned or conveyed
assumes all responsibilities of a common his right to the captain.
carrier without operating its own vessel. This
Nonvessel Operating Common Carrier
(NVOCC) acts as a shipper in relation to the
actual carrier, and as a carrier to the shipper.
He charges for the entire distance, and assumes
responsibility for the transportation of the
goods from point of receipt to point of
destination
C. Cargo Consolidator
It consolidates small shipments for various
consignor/ consignees by procuring vessel/
container space from carriers and issuing its
own bill of lading. Its destination agents
distribute the small shipments to the
consignees named in the consolidators
manifest.
7
COGSA only apply to loss/ damaged
goods. Thus, in misdelivery, where
goods were delivered to another,
COGSA will not apply CARRIAGE OF GOODS BY SEA ACT
A. Origin/ purpose:
COGSA is a U.S. Law which was adopted by the
C.A. No. 65 in 1936, to govern contract for the
carriage of goods by sea to and from the RP in
foreign trade.
B. Primary Law:
COGSA is governing law if stated in bill of lading
or similar document that contract of carriage is
subject to its provisions (sec. 13).
Note effect on Art. 1753 of NCC.
C. Bill of Lading:
Prima facie of the receipt by the carrier of the
goods as described therein. (Sec. 3[4]). Contrary
evidence may be presented.
If delivered to an arrastre operator, 1 yr.
period should run from there & NOT at the
time the arrastre delivers the goods to the
consignee
D. Prescriptive Period (Sec. 3[6]):
1. if loss or damage is apparent or external, notice
in writing must be given to carrier or agent at time
of removal of goods by person entitled to delivery.
2. If loss or damage is not apparent within 3 days
of delivery
3. If no notice is given, there is prima facie
evidence of delivery of goods as described in bill
of lading.
4. Notice is not needed if goods jointly surveyed
or inspected St time of their receipt
5. Whether notice of loss/ damage is given or not,
suit must be filed within 1 year after delivery or
when goods should have been delivered; otherwise
prescribed
#5Not to be tolled by
6. If misdelivery, prescriptive period for suit is demand
10
extrajudicial
years for breach of written contract or 4 years for
quasi-delict.
Atty. Abao notes + Perez
Edited by Advincula, delos Reyes & Gruba
SPECIAL LAWS IN TRANSPORTATION (A)
WARSAW CONVENTION
Only the carrier's liability is extinguished is A. Origin/ Purpose E. Prescriptive Period (Arts. 26 & 29):
no suit is filed within 1 year by shipper, 1. In case of damage, the person entitled to
consigned, or insurer. The prescriptive Signed first by 30 countries in October 1929 to delivery must complain to the carrier after the
period does not apply to suits insured establish uniform system of rules for discovery of the damage within 7 days from
against insurer. international air transportation of persons, date of receipt in case of baggage and 14 days
baggage, or goods. RP concurred in 1950. in case of cargo amended by Hague
E. Liability (Sec. 4[5]): 2. In case of delay, 21 days from delivery of
B. Liability of a carrier (art. 17-21) goods /baggage. amended by Hague
1. Maximum of $500 per package or, if not 3. No action lies if complaint beyond period,
shipped in packages, per customary freight 1. Death or injury happening on board the unless there is fraud
unit (e.g. Metric ton of bulk shipment). aircraft or during embarking/ disembarking 4. Action must be filed within 2 years from
date of arrival, or when ought to arrive, or
2. Nature and value of goods may be 2. Destruction, loss or damage to checked in when transportation stopped.
declared by shipper and inserted in bill of baggage or goods while in the charge of the
lading; declaration is prima facie evidence carrier, whether on board aircraft or in airport. F. Defendants (Art. 30):
and not conclusive on carrier 1. In case of successive carriers, the carrier in
3. Damage occasioned by delay. which the accident or delay occurred, unless by
3. Shipper and carrier may agree on another express agreement first carrier assumed
maximum amount but not more than Defense: exercise of extraordinary diligence; liability for entire journey.
amount of damage actually sustained. impossibility to prevent damage; contributory 2. As regards baggage or goods, passenger/
negligence consignee may sue against first carrier;
When the packages are shipped in s passenger/ consignee against last carrier; or
container supplied by carrier and the C. Excluded: under WC, to be prosecuted as against carrier in which destruction, loss or
number of such unite is stated in the bill of quasi-delict or breach of contract under New damage occurred; all carriers jointly and
lading, each unit and not the container Civil Code: refusal to board, bumping off, severally liable.
constitute the "package" downgrading, disrespect, abusive and insulting
language etc. G. Jurisdiction (Art. 28):
F. Liability (Sec. 4[6]): Only damage or injury Plaintiff has option to file action for damages
at:
1. If nature or value of goods knowingly D. Limited Liability (Arts. 22-25): 1. Domicile of carrier
and fraudulently misstated by shipper. 1. 250,000 francs per passenger, unless higher 2. Principal place of business of carrier
limit is agreed upon. 3. Where carrier has business through which
2. If damage resulted from dangerous nature 2. 250 francs p kilo of checked baggage/ goods contract made
of shipment loaded without consent of unless declaration of higher value and added 4. Place of destination
carrier payment made
3. 5,000 francs per hand carried baggage
3. If unseaworthiness not due to negligence ***5. residence of the plaintiff
of carrier Condition: no willful misconduct (Montreal convention): not yet
adopted in the Philippines
Limitation of liability under Warsaw will
4. If deviation was to save life or property at not apply if attended by willful misconduct,
sea. Notes: BF or otherwise improper conduct on the
*Can the CC insist that the $500 be lowered part of the carrier
without consent of the shipper? NO Stipulation to lower limit to exempt from
- COGSA provides the maximum, partiesliability is void.
therefore can agree in the B/L amount
lesser
*Notice: can be a provisional claim; not a
condition precedent (in Code of Commerce,
it is a condition precedent)
*Can the parties agree to a shorter period
than 1yr? NO 8
*$500/ package: modify? YES

SALVAGE LAW
(R.A. 2616)
A. Definitions: salvage
1. Service rendered to preserve the goods
or ship which the owner has either
abandoned in distress at sea or is unable to
protect or secure
2. Compensation to one by whose
assistance a ship or cargo has been saved
from impending danger or recovered from
actual loss Has a lien over vessel/
things salvaged
3. Vessel or cargo recovered from
abandonment at sea
B. Elements of a valid salvage:
Not when vessel suffered
1. Marine peril engine failure in open sea,
when weather is fair
2. Voluntary service
When not required as an
existing duty of prior
special contract
3. Success in whole or part
Notes:
Permit to do salvage work:
- PCG: in case of derelicts (abandoned),
sunken vessel or wrecks
- Bureau of Customs: in case of cargoes
carried by sunken vessels
If within 3 mos. from advertisement of the
salvaged goods, no claimants presented, the
goods are sold in public auction. Proceeds after
deducting reward & expenses, shall be
deposited to National Treasury.
If within 3 years, no one claims, of deposit
given to salvager and to the government.
SPEACIAL LAWS IN TRANSPORTATION (B)
SHIP MORTGAGE DECREE LAND TRANSPORTATION CODE
(P.D. 1521) (R.A. 4136)
A. Purpose of mortgage:
To finance the construction, acquisition,
purchase of vessel, or initial inspection
thereof.
B. Conditions for preferred mortgage:
1. Registration with PCG
2. Affidavit of good faith
3. No waiver of preferred status
C. Preferred mortgage has priority over all
claims against the vessel, except:
1. Taxes, crew's wages, general average,
salvage, damages arising out of torts
2. Preferred mortgages registered prior in
time
3. Maritime lies arising prior to
registration of preferred mortgage (Sec.
17)
D. Maritime lien for necessities:
Any person furnishing repairs, supplies,
tonnage, use of dry dock or other
necessities to any vessel, upon the order of
it's owner or the latter's authorized
representatives, shall have maritime lien
on the vessel which may be enforced by a
suit in rem and it shall be necessary to
allege or prove that credit was given to the
vessel. (sec. 21)
Atty. Abao notes + Perez
Edited by Advincula, delos Reyes & Gruba
IATA TARIFF RULES
1. A motor vehicle must be registered for Under the rules and regulations of
the current year, as a condition for its International Air Transportation
operation on a public road or highway Association (IATA), an airplane ticket is
valid for one year
2. A person can still drive a vehicle even
without possessing his driver's license, That is the time allowed the passenger to
albeit he may be violating traffic rules. begin and complete his trip. A passenger
(Manuel vs. CA, 227 SCRA 29). can no longer use an expired ticket to
complete his trip. He must purchase w
3. A person driving with an expired and new ticket for the remaining portion of his
unrenewed driver's license is deemed not
journey. (Air France vs. CA, 126 SCRA
to have any license at all. 449)
4.insurance requires an "authorized driver"
who is either the insured or a person
driving on insured's order or with his
permission, provided he abides with
licensing rules. A driver with expired
Traffic Violation Receipt (TVR) or
Temporary Operation Permit (TOP) is not
an authorized driver within the meaning of
insurance policy.
5. Mortgage, attachment or other
encumbrances on motor vehicle must be
registered and recorded on the face of the
Certificate of Registration
9

PUBLIC UTILITIES
Renders services essential
to general public.
Impressed with public
interest and concern
Subject to POLICE
POWER which is a
legislative prerogative/
power.
CONGRESS delegates its
power and responsibilities
to regulate public utilities.
Regulatory bodies/
Administrative and Quasi-
Judicial Agencies
POTESTAS DELEGATA
NON DELEGARI
POTEST
**Note: exempted from requirement of CPC/ CPCN:
1. Public service owned or operated by govt
entities/ GOCC
2. Expressly exempted by the legislative franchise
3. Expressly exempted from jurisdiction of
commission
Atty. Abao notes + Perez
PUBLIC SERVICE Edited by Advincula, delos Reyes & Gruba
REGULATORY AND FRANCHISING BODIES FUNCTIONS
C.A. 146 (1936) P.D. 1 (1972) E.O.S A. Franchising/ Licensing
1. Regulatory bodies grant
LTO/ LTFRB (land transport) CPC; grant of CPCN
TRB (toll road) requires prior congressional
BOT
franchise
(Transportation)
PCG/ MARINA (water transport) 2. Requirements: Filipino
PPA (ports) citizenship, financial
capability, public need
CAB (air transport) 3. Due process: notice and
CAAP (airports) hearing
B. Regulation
PSC BOT
(Public Service Commission) (Communication) NTC (communication) 1. Cancellation or suspension
1936- 1972 of CPC/CPCN; imposition of
fine (Reasons: e.g. unreliable
service, frequent accidents).
2. Due process: notice and
hearing (Reasons: franchise
ERB- ERB (power) is property and not merely
BPW privilege; non-impairment of
NEA (electric cooperatives)
(Power/waterworks) contract if investments
NWRB (waterworks) made).
LWUA (water districts)
C. Rate Fixing/ Determination
SPECIAL CASES: 1. Local Government (Local Autonomy Code) 1. Quasi- judicial function
- Franchising of tricycles 2. Goal: balance between
2. Special Economic Zones: CDC & SBMA private and public demands;
- Communication franchises within their respective zones just and reasonable rate for
both
3. Fair return on investment vs.
Prior operator rule: before allowing new operator, prior operator Congress cannot decide confiscatory measures
4. Affordability vs.
must be given opportunity to improve its service to cover needs
No hard and fast rule
of public (old operator must offer) discrimination
Prior applicant rule: if all applicant for public utility are of all
No ROI- confiscatory
equal conditions, priority given to 1st applicant
Protection of investments rule: prevent new applicant when it
will cause ruinous competition
**** Rules will give way for better service for public interest 10