San Beda College of Law

TRANSPORTATION LAW

I. GENERAL CONCEPTS

a. Contract of Transportation in general

b. Perfection

c. Common Carriers
1. Statutory Definition (Art. 1732, Rep. Act 386)1
2. Distinction from Private Carriers
3. Distinction from towage, arrastre and stevedoring services
4. Tests in determining whether one is a common carrier
5. Parties to a Contract of Carriage

d. Registered Owner Rule and the Kabit System

Assigned Cases:

a. Baliwag Transit Corporation v. Court of Appeals 169 SCRA 849

b. British Airways Inc. v. Court of Appeals 218 SCRA 699
c. Dangwa Transportation Co., Inc. v. Court of Appeals 202 SCRA 574
d. Light Rail Transit Authority v. Navidad 397 SCRA 75
e. De Guzman v. Court of Appeals 168 SCRA 612
f. Spouses Cruz v. Sun Holidays Inc. G.R. No. 186312
g. Asia Lighterage and Shipping Inc. v. Court of Appeals 409 SCRA 340
h. First Philippine Industrial Corp. v. Court of Appeals 300 SCRA 661
i. Planters Products Inc. v. Court of Appeals 226 SCRA 476
j. Fabre. v. Court of Appeals 259 SCRA 426
k. Bascos v. Court of Appeals 221 SCRA 318
l. FGU Insurance Corp. v. Sarmiento Trucking Corp. 386 SCRA 312
m. Crisostomo v. Court of Appeals G.R. No. 138334
n. Cargolift Shipping, Inc. v. L. Acuario Marketing Corp. 493 SCRA 157
o. Erezo v. Jepte G.R. No. L-9605
p. Santos v. Sibug 104 SCRA 520
q. Lita Enterprises, Inc. v. Court of Appeals G.R. No. L-64693
r. PCI Leasing and Finance Inc. v. Court of Appeals 557 SCRA 141
s. Lim v. Court of Appeals G.R. No. 125817
t. Teja Marketing v. IAC 148 SCRA 347

II. OBLIGATIONS OF A COMMON CARRIER IN CONTRACTS FOR THE CARRIAGE OF GOODS

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Unless otherwise indicated, all laws cited herein shall refer to the Civil Code of the Philippines
(Rep. Act No. 386).
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 a. Degree of care over the goods
1. Duty to exercise extraordinary diligence (Arts. 1733, cf 363, 364 & 365)
2. Presumption of Negligence (Art. 1735)
3. Duration of liability (Art. 1736)
4. Defenses available to common carriers (Arts. 1734, 1739, 1740, 1742 &
1743)
i. Fortuitous event (Art. 1739)
ii. Public enemy (Art. 1739)
iii. Improper packing (Art.1742)
iv. Order by public authority (Art. 1743)

5. Contributory negligence of the shipper (Art.1741)

6. Stipulations limiting the liability of a carrier (Arts.1744, 1748, 1749 & 1750)
i. Requisites for validity (Arts.1744 & 1751)
ii. Invalid stipulations (Art.1745)
iii. Effect of Delay (Art.1747)
iv. Rule on the presumption of negligence despite stipulation (Art.1752)

b. Other obligations
1. Duty to accept the goods
i. Grounds for a valid refusal to accept goods
2. Duty to deliver the goods
i. Time of Delivery
ii. Consequences of delay (Arts.1740 & 1747)
iii. Place of Delivery
iv. To whom delivery shall be made (Arts. 1240, et seq.)

Assigned Cases:

a. Ganzon v. Court of Appeals 161 SCRA 646

b. Fisher v. Yango Steamship Co. G.R. No. 8095
c. Benedicto v. Intermediate Appellate Court 187 SCRA 547
d. Eastern Shipping Lines, Inc. v. Court of Appeals 196 SCRA 570
e. Sarkies Tours Philippines, Inc. v. Court of Appeals 280 SCRA 58
f. Valenzuela Hardwood & Industrial Supply, Inc. v. CA 274 SCRA 642
g. Yobido v. Court of Appeals 281 SCRA 1
h. Ganzon v. Court of Appeals 161 SCRA 646
i. Saludo, Jr. v. Court of Appeals 207 SCRA 498
j. Macam v. Court of Appeals 313 SCRA 77
k. SeaLand Services, Inc. v. Intermediate Appellate Court 153 SCRA 552
l. Citadel Lines, Inc. v. Court of Appeals 184 SCRA 544
m. Everette Steamship Corp. v. Court of Appeals 297 SCRA 496
n. British Airways v. Court of Appeals 285 SCRA 450
o. Sweet Lines v. Teves 83 SCRA 361

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III. OBLIGATIONS OF THE COMMON CARRIER IN A CONTRACT OF CARRIAGE FOR THE CARRIAGE
OF PASSENGERS

a. Safety of Passengers
1. Duty to observe utmost diligence (Art. 1755)
2. Duration of Liability
3. Presumption of negligence (Art. 1756)
4. Liability for acts of its employees (Art. 1759)
5. Liability for acts of strangers and/or third parties (Art. 1763)
6. Effect of stipulations regarding liability (Arts. 1757, 1758 & 1760)

b. Baggage (Arts. 1754, 7998, 2000 to 2003)

c. Relevant provisions of the Warsaw Convention

1. Binding effect of the Warsaw Convention
2. Categories of International Air Transportation
3. Liability under the Warsaw Convention

Assigned Cases:

a. Nocum v. Laguna Tayabas Bus Co. 30 SCRA 69

b. Negros Navigation Co., Inc. v. Court of Appeals 281 SCRA 534
c. Korean Airlines Co. Ltd. V. Court of Appeals 234 SCRA 717
d. Dangwa Transportation Co., Inc. v. Court of Appeals 202 SCRA 574
e. Fortune Express, Inc. v. Court of Appeals 305 SCRA 15
f. Phil. Rabbit Bus Lines v. Intermediate Appellate Court 189 SCRA 158
g. Lara v. Valencia 104 Phil 65
h. Necessito v. Paras 104 Phil 75
i. Japan Airlines v. Court of Appeals 294 SCRA 19
j. Yobido v. Court of Appeals 281 SCRA 1
k. La Mallorca De Jesus v. Court of Appeals 17 SCRA 739
l. Aboitiz Shipping Corp. v. Court of Appeals 179 SCRA 95
m. Calalas v. Court of Appeals 332 SCRA 870
n. Gillaco v. Manila Railroad Company 97 Phil 884
o. Maranan v. Perez 20 SCRA 412
p. Philippine National Railways v. Court of Appeals 139 SCRA 87
q. Del Prado v. Manila Electric Co. G.R. No. L-l29462
r. Isaac v. A.L. Ammen Transport Co., Inc. 101 Phil 1046
s. PNR v. Brunty 506 SCRA 685
t. Pilapil v. Court of Appeals 180 SCRA 546
u. Gacal v. PAL 183 SCRA 189
v. Kapalaran Bus Line v. Coronado 176 SCRA 792

IV. OBLIGATIONS OF THE SHIPPER, CONSIGNEE AND PASSENGER

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 a. Effect of negligence on the part of the shipper or passenger (Arts. 1741 &
1761-1762)
b. Payment of freight
c. Liability for demurrage

V. EXTRAORDINARY DILIGENCE

a. Underlying Reason
b. Effect of Stipulation (Arts. 1744, 1757-1758 & 1760)
c. Extraordinary diligence in carriage by sea
1. Seaworthiness of the vessel (Secs. 3[1] & [2], Carriage of Goods by Sea Act
[COGSA]; Secs.116 & 119, Insurance Code)
2. Overloading
3. Proper Storage
4. Obligation of captain and crew
5. Rule on deviation and transhipment

d. Extraordinary diligence in carriage by land

1. Vehicles condition
2. Traffic Rules (Relevant provisions of Rep. Act 4136)
3. Obligation to inspect
4. Anti-Drunk and Drugged Driving Law (Rep. Act 10586)

e. Extraordinary diligence in carriage by air

VI. BILL OF LADING AND OTHER FORMALITIES

a. Definition of Bill of Lading

b. Classes of Bill of Lading
c. Nature of a Bill of Lading (Secs.3[4] and [5], COGSA)
1. As a contract
i. Basic stipulations in a bill of lading (Sec. 4[5], COGSA)
ii. Prohibited stipulations (Art. 1745)
2. As a document of title (Arts. 1508-1510, 1513 & 1515)
3. As a receipt
d. Relevant provisions of the Warsaw Convention (Arts. 17-19 & 22, Warsaw
Convention)

Assigned Case: Sweet Lines, Inc. v. Teves, supra.

VII. ACTIONS IN CASE OF BREACH OF CONTRACT OF CARRIAGE

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 a. Causes of action and nature/extent of liability (culpa contractual, culpa
aquiliana and culpa delictual) (Arts. 1759, 2180; Art. 100, Revised Penal Code)

b. Prescriptive period and conditions precedent

1. Overland transportation of goods and coastwise shipping
2. International carriage of goods by sea (Sec. 3[6], COGSA)

c. Recoverable damages

VIII. MARITIME LAW (Art. 573-869, Code of Commerce)

a. Concept of Maritime Law

b. Limited liability rule (Arts. 587, 590, 643 & 837, Ibid.)
1. Concept
2. Exceptions
3. Abandonment

Assigned Cases:

a. Luzon Stevedoring Corp. v. Escao 156 SCRA 169

b. Aboitiz v. General Accident Fire and Life Assurance Corp. 217 SCRA 359
c. Lopez v. Duruelo G.R. No. 29166

c. Vessels
1. Acquisition
i. By prescription (Arts. 573 & 575)
ii. By sale (Arts. 576-578)
iii. Registration (Sec. 810,Tariff and Customs Code)
iv. Ships manifest (Sec. 906, Tariff and Customs Code)
2. Mortgage of vessels (Pres. Dec. No. 1521)

d. Persons who take part in Maritime Commerce

1. Shipowners and shipagents (Arts. 586-588)
i. Rules in case of part-owners (Arts. 589-594)
ii. Rules in case of shipagents (Arts.595-602)
2. Captains and masters of vessels
i. Qualifications (Art. 609)
ii. Powers and functions (Arts. 610-612)
iii. Discretionary Powers
3. Pilot
i. Concept
ii. Relationship to master and shipowner
4. Officers and crew of the vessel
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Assigned Cases:

a. Yu Con v. Ipil, et. al. G.R. No. 10195

b. Far Eastern Shipping Co v. CA 297 SCRA 30

e. Charter Parties
1. Concept
2. Kinds: bareboat and contract of affreightment
3. Persons qualified to charter
4. Requisites for a valid charter (Art. 652)
5. Concept of and liability for demurrage
6. Rights and obligations of charter parties

f. Loans on Bottomry and Respondentia

1. Definition (Art. 719)
2. Distinctions against ordinary loans
3. Parties
4. Formalities required (Art. 720)
5. Effect of loss (Art. 731)
6. Cases where loan is regarded as simple loan (Arts. 726-729)

g. Averages
1. Concept (Art. 806)
2. Classes of average and the persons liable
i. simple average (Arts. 809-810)
ii. General average (Arts. 811-813, 816-818, 732 & 859-861)

h. Collisions
1. Definition
2. Zones in collisions (doctrine of error in extremis)
3. Rules on liability (Arts. 826 to 832; doctrine of inscrutable fault)
4. Limited liability rule (Art. 837)

i. Arrival under stress

1. Concept (Art. 819 )
2. When improper (Art. 820 )
3. Expenses (Arts. 821 to 822 )
4. Custody of cargo (Arts. 823 to 824 )
5. Captains liability (Art. 825)
6. Shipwreck (Arts. 840 to 845 )

j. Salvage
1. Definition
2. Rights and obligations of salvors and owners (Salvage Law)