TRANPORTATION LAW REVIEWER Gratuitous/reduced

fair still deemed as

PART 1 - COMMON CARRIERS passenger but a
PART 2 AVIATION LAW stipulation limiting
the CC liability for
PART 3 MARITIME LAW negligence is valid
PART 4 PUBLIC UTILITIES
- Carriage of goods:
o Carrier
PART 1- CHAPTER 1 GENERAL CONSIDERATIONS o Shipper
Person who delivers
the goods to carrier
for transportation.
Person who pays
1. DEFINITION OF CONTRACT OF TRANSPORTATION the consideration or
on whose behalf
- It exist when a person obligates himself to transport payment is made.
persons or property from one place to another for a o Consignee- person to
consideration. whom the goods are to be
delivered.
- it involve: contract of goods and persons Consignee is bound
by contract if it is
proven that he
2. PARTIES ( depend if its carriage of passengers or goods accepted same and
is trying to enforce
- Carriage of passengers: the agreement
o Common carrier
o Passenger 3. PERFECTION
(one who travels in
public conveyance a. Contract of carriage of passengers
by virtue of contract,
express or implied, o Contract to carry - agreement to carry
with the carrier passengers at some future date:
subject to payment consensual: perfected by mere consent.
of fare or an
equivalent thereof.) a. Aircraft even if no tickets
were issued to said
passengers provided there is
already meeting of the minds
 as to subject matter and
consideration. 1. there is a perfected contract of
-even if no tickets were carriage between passenger and
issued, a verbal contract to airline company if established that the
carry is already a binding passenger had
consensual contract i. checked in @departure
-no written contract counter
necessary. ii. passed through
customs and
b. Buses, jeep and street cars immigration
- continuing offer rule once a iii. boarded the shuttle bus
public utility stops, it is in effect and proceeded to the
making a continuing offer to bus ramp of the aircraft
riders and the passenger is deemed iv. his baggage is already
to accept the offer if he is already loaded in the aircraft
attempting to board and the contact of
carriage is perfected at that point.
c. Trains
-must purchase a ticket and
present himself at the proper place
and in a proper manner for
transportation
b. Contract of carriage of goods
-he must have a bona fide
intention to use the facilities of carrier, o Consensual contract where the carrier
possess sufficient fare and present agrees to accept and transport the goods at
himself to carrier for transportation in some future date.
the place and manner provided.
HOWEVER, when the goods are
unconditionally placed in the possession and
control of carrier and upon receipt by carrier,
contract of carriage is perfected.
o Contract of carriage or of common carriage
itself -a real contract for not until the
carriers facilities are actually used can the 4. COMMON CARRIER
carrier be said to have already assumed the
carriers obligation.
 a. 1732 NCC F.A.C.P. engaged in business of
carrying or transporting passengers or goods or
both, by land, water or air, for compensation
offering their services to the public.
b. He holds himself out as ready to engage in the
transportation of goods for hire as a public
employment and not as casual work.
- It coincides neatly with the notion of public service
5. TEST for determining W/N a party is CC of goods:
a. Engaged in business of carrying goods for others
as public employment and hold himself out as
ready to engage in the transportation of goods
generally as business and not as casual occupation
b. Undertake to carry goods of the kind to which his
business is confined
c. Undertake to carry by method by which business is
conducted and over his established roads
d. Transportation for hire.
- The test must be determined by the character of the
business actually carried on by the carrier.
6. CHARACTERISTICS
a. Not necessary for CC that one holds himself out as
serving or willing to serve the public as a class or at
large in order to be considered public service. It
must only be needed that in some way be
impressed with public interest.
b. Ancillary business
o 1732 makes no distinction between one whose
principal business activity is the carrying of
persons or goods or both, and one who does
such a carrying only as an ancillary activity.
c. Limited Clientele
o Although clientele is limited, the regularity of
activities of a carrier may indicate that the same
carrier is a common carrier.
d. Means of transportation
o Pipelines or motor vehicles
7. EFFECT OF CHARTER PARTY ( contract by which the
whole ship or part thereof is let by owner to another for
specified time or use )
KINDS:
a. Affreightment contract use of shipping space of
vessels leased by owner in whole or part, to carry
goods for others.
o Time charter vessel is leased to charterer
for fixed time
o Voyage charter vessel is leased for one
vayage.
b. Charter by demise or bareboat whole vessel is let
to charterer with transfer of entire command and
possession and control of navigation, master and
crew.

8. C.C. vs P.C.
o The difference lies on the character of
business, such that if undertaking is single
transaction, not part of general business,
although involving the carriage of goods for
fee, the person or corporation offering such
service is a private carrier.
o Diligence required
o Stipulation on exemption from liability
o Presumption of negligence
9. C.C. vs OTHER CONTRACTS
o Towage vessel hired to bring another
vessel to another place
a. Though engaged in limited
contract of carriage because it
chooses its customers and not
open to public, nevertheless,
its continuity of operation in
this kind of business makes it
as public utility.
b. Observe diligence of good
father of family
o Arrastre
handling of cargo deposited
deposited in a wharf
the custodian of goods
discharged from vessel and
turnover and the turnover to
the party entitled to the
possession.
May unload cargoes from
vessel
EO Diligence of CC and
warehouseman
To receive, handle, care for
and deliver mechandise,
imported or exported, upon or
passing over govt owned
wharves and piers in the port
Record and check all
merchandise delivered to the
port at shipside
To furnish light and water
services and other incidental
services.
No different from depositary or
warehouseman.
In some cases, solidary liability
may be imposed against the
carrier and arrastre operator if
both their employee are
concurrently negligent. a
case of joint tortfeasors.
Stipulation to a limited liability
to an amount UNLESS value
of importation in specified in
writing with the invoice value
and with certified packing list to
arrastre by interested party
before arrival of goods.
o Stevedoring loading and unloading
of coastwise vessels calling at the
port.
Handing of cargo in the holds
of vessel or between ships
tackle and the holds of the
vessel.
 Responsibility ends upon
loading and stowing of the
cargo in the vessel
Diligence of GFOF
Not a CC for it does not
transport goods or passengers
Not a kin to a warehouseman
for it does not store goods for
profit.
o Travel Agency only a contract of
service
Ordinary diligence
Arranging and facilitating
booking, ticketing and
accommodation in package
tour.
10. LINE AND TRAMP SERVICE
o Line service operates as CC since it
publicly offers its services publicly without
discrimination, has regular ports of call, fixed
sailing schedules and frequencies and
published freight rates and charges and
usually carries multiple consignments.
o Tramp Service- contract carrier which has no
regular and fixed routes and schedules but
accepts cargo wherever and whenever the
shipper desires, hired on contractual basis or
chartered by anyone or few shippers under
mutually agreed terms and usually carries
bulk
11. GOVERNING LAWS
o Art. 1753 NCC loss, destruction or
deterioration of goods, the law of the country
of destination shall apply.
12. NATURE OF BUSINESS
o Exercise a sort of public office and have
duties to perform in which the public is
interested.
o The business of CC impinges directly the
safety, well-being and property of members
of the general community who happens to
deal with such carrier.
13. REGISTERED OWNER RULE and KABIT SYSTEM
a. REGISTERED OWNER RULE
o GR> Person who is the registered owner of
a vehicle is liable for any damage caused by
negligent operation of the vehicle although it
was already sold or conveyed to another
person at the time of accident.
o EXC> registered owner not liable if the
vehicle was taken from his garage without
his consent or knowledge.
b. KABIT SYSTEM
o Arrangement whereby a person who has
been granted a franchise allows other
persons who own motor vehicles to operate
them under his license, for fee or percentage
of earnings.
o Void, inexistent and contrary to public policy.
o INPARI DELICTO RULE both parties in
kabit cannot invoke the same as against
each other either to enforce their illegal
agreement or to invoke the same to escpe
liability.
o LTO prohibits KABIT, KAMBAL PLAKA,
POKPOK CHASIS.
o It also applies to aircrafts and vessels.

14. BOUNDARY SYSTEM
o The carrier cannot escape liability by
claiming that the driver is a lessee.
CHAPTER 2 OBLIGATIONS OF COMMON CARRIER
1. BASIC OBLIGATIONS OF THE CARRIER
a. To transport the goods or passenger safely to the
agreed destination
i. 7 Duties of Common Carrier
1. Accept passengers and goods
without discrimination
2. Seasonably deliver goods or bring
passenger to destination
3. Deliver goods or bring passenger to
proper destination
4. Deliver goods to proper person
5. Exercise EO diligence
ii. Rights of passenger or shipper
1. Right against discrimination
2. Right to have goods transported
without delay
3. Personal right to enforce all
obligations of carrier
DUTY TO ACCEPT GOODS FOR TRANSPORT
o Present rule: disallowance of discrimination
bound to receive for carriage, without
discrimination all proper persons who desire
it and properly offer to become passengers.
o Valid grounds for non-acceptance of goods
Dangerous objects or substances
(dynamites and other explosives)
Unfit for transportation
Resultant Overloading
Contrabands or illegal goods
Injurious to health
Exposure to untoward danger
(flood,capture by enemies and the
like)
Exposure to diseases
Strike
Failure to tender goods on time
o Hazardous and dangerous substances
A carrier not properly equipped to
transport dangerous chemicals or
explosives may validly refuse to
accept the same for transport
o Unfit for transport
Improper packing or defect in
containers
However, the carrier may choose to
transport goods and limit its liability
by stipulation
Lessening loss even if the loss,
destruction of goods should be
caused by the character of goods or
faulty nature of the packing
containers, CC must STILL
 EXERCISE DUE DILIGENCE to
forestall or lessen loss.
Inspection
CC is entitled to FAIR
REPRESENTATION of the
nature and value of the goods
to be carried with the
CONCOMMITANT RIGHT TO
RELY thereon and CC has no
obligation to inquire into the
correctness or sufficiency of
such information.
Right to inspect arises when
there is a reason to doubt the
veracity of such
representations.
Transportation of animals by CC.
Provide adequate, clean and
sanitary facilities for safe
delivery to their consignee.
Sufficient food and water if
transit is more than 12 hours
Written permit to transport
from Bureau of Animal
Industry
Duty to special class of passenger.
Ensure that PWD and Sr
Citizens have EQUAL
ACCESS to air transportation
services
20% discount
Duty to make timely delivery of the
goods.
If there is agreement as to
time deliver it within the
stipulated time
If there is no agreement as to
time deliver it within the
reasonable time.
Consequences of delay
Excusable delays suspend,
but do not generally terminate,
the contract of carriage and
when the cause is removed,
the master must proceed with
the voyage and make
delivery.
Inexcusable delays:
o Carrier is still liable
even if natural disaster
caused the damage
o Stipulation limiting
liability is inoperative
o Carrier is liable for
damages.
o Consignee may
exercise his right to
abandon
Right to Abandon
Applies to maritime and
overland transportation.
Limited right to abandon the
goods transported during the
 period intervening between
the moment when the fault of
the carrier produces a delay
which is the generative cause
of action, until the moment just
before the arrival of the goods
at place of delivery by
communicating such
abandonment to carrier in
writing - when these
conditions does not concur
the refusal to accept cannot
be effective
May be made by stipulation or
agreement
4. DELAY TO TRANSPORT PASSENGERS
2. PLACE OF DELIVERY
a. Place agreed upon by the parties even if it is not
the usual place of delivery in the place of
destination
b. Shipper, without changing the place of delivery,
may change consignment of the goods which he
delivered to the carrier, PROVIDED at the time of
ordering the change of consignee the bill of lading
signed by carrier be returned to carrier in exchange
for another wherein the novation of contract
appears expenses shall be on the account of
shiiper.
3. TO WHOM DELIVERED
a. To the Consignee (or any person to whom the bill
of lading ws validly transferred or negotiated.
Conflict between consignee and shipper
o The right of the sipper to countermand the
shipment terminates when the consignee or
legitimate holder of bill of lading appears
with such bill of lading before the carrier and
makes himself a party to the contract. Prior
at that time he s a stranger to the contract.
Effect of negotiable bill of lading
o In case of such transfer, the carrier is
obligated to deliver the goods to transferee
or holder. There is no need to notify the
carrier that was such a transfer.
a. Transport passenger with reasonable dispatch
b. Carrier is liable when the vessel or vehicle is
unreasonably delayed
i. If voyage already begun should be
interrupted by force majeure or fortuitous
event - passengers shall be obliged to pay
fare as to distance already covered but
cannot recover losses and damages
ii. If interruption is caused by the captain
exclusively passenger has the right
indemnity
iii. If interruption should be caused by the
disability of vessel and passenger agree to
wait for repairs passenger is not required
to pay increased price of passage but his
living expenses during the stay shall be on
his account.
 c. Marina regulation
i. If vessel is not able to depart on time and
delay is unreasonable, the passenger may
opt to have his or he ticket refunded without
any service refund fee from issuing ticket
office.
5. DUTY TO EXERCISE EO DILIGENCE
a. The CC is not insurer of the lives and properties of
the passenger and shipper BUT the highest degree
of diligence is still required
b. Meaning of EO Diligence - usage of all reasonable
means to ascertain the nature and characteristics
of goods tendered fo transport and it exercised due
care in handling them.
6. Non-Delegability of Duty
a. Duty of seaworthiness and the duty to care of the
cargo is non0delegable and the carrier is
responsible for the acts of master, crew, stevedore
and other agents
7. PRESUMPTION OF NEGLIGENCE
a. In case of loss of effects or cargo or passenger or
death or injuries of passenger CC is presumed to
be at fault or have acted negligently UNLESS he
observed the EO diligence in vigilance thereof.
b. Prove first that there is :
i. Contract between CC and Passenger
ii. LDID occurred during the existence of
contract.
c. Carrier is liable even if nobody can establish the
cause of the loss.
d. Plaintiff must still, before the burden is shifted to
defendant, prove that subject shipment suffered
actual shortage.
e. Unless presumption is rebutted, the court need not
even make express finding of fault or negligence on
CC.
f. This presumption may be overcome by evidence
that carrier exercised EO diligence.
g. But there is NO PRESUMPTION OF BAD FAITH
h. Effect of Acquittal acquittal of employee of the CC
in the criminal case is immaterial to the case for
breach of contact. ( ART 31 NCC )
i. Duration of Duty in the carriage of goods.
exercised the moment the goods are delivered to
carrier.
j. When goods deemed delivered to CC when the
goods are ready for and have been placed in
exclusive possession, custody and control of the
carrier for transportation and carrier has accepted
them
k. Temporary unloading or storage CC must still
exercise EO diligence because goods have not yet
been delivered to consignee and voyage of carrier
will resume
l. STOPPAGE IN TRANSITU
i. Right of unpaid seller to resume possession
over goods at any time while goods are in
transit and he becomes entitled to same
rights to the goods as he never parted with
its possession.
 ii. EO diligence need not be exercised if the
shipper or owner has used the right of
stoppage in transit or unloaded temporarily.
1. Requisites of Right in transit
a. Insolvent buyer
b. Unpaid seller parted with
possession of goods
c. Goods still in transit
iii. The duty to exercise EO diligence ends if
seller used his right of stoppage in transit
because contract of carriage terminates
when such right is exercised. Carrier
becomes ordinary bailee
iv. EO diligence up to delivery
m. Commencement of Duty in Carriage of passengers
i. As to passengers in train
1. EO diligence starts at moment a
person purchases the ticket from
carrier and presents himself at proper
place and proper manner to be
transported with bona fide intent to
ride the coach.
2. As long as passenger is within the
premises and where they ought to be
in pursuance of their contract of
carriage.
3. Person after alighting from the train,
walks along the station platform is
considered still as passenger
4. A person still retrieving his baggage is
still the responsibility of carrier
ii. Carriage by Sea duty of CC starts as soon
as the person with bona fide intention of
taking passage places himself in the care of
carrier or employees and is accepted as
passenger.
iii. Overland transport ones it stops, it is
making a continuing offer o bus riders
iv. How duty is complied with
- to carry passengers safely as far as human
care and foresight can provide, using the
utmost diligence of very cautious person
considering all the circumstances.
Statutory Duties to Passengers
-Art. 1759 CC are liable for the death of or
injuries to passengers through the
negligence or wilful acts of the formers
employees, although such employees may
have acted beyond the scope of their
authority or in violation of orders of CC.
-Art. 1763 CC is responsible for injuries
suffered by passengers on account of the
wilful acts or negligence of other
passengers or of strangers, if the CC
employees through the exercise of diligence
of GFF could have prevented or stopped the
act or omission.
v. Duty to 3rd persons by exercising EO
diligence they also benefit the pedestrians
and other car owners.

vi. Stipulation of exercise of EO diligence
1. Parties may stipulate less than EO
diligence if its carriage of goods.
Stipulation limiting liability requisites:
o In writing
o Signed by shipper or owner
o Supported by valuable
consideration other that
service rendered by CC
o Reasonable, just and not
contrary to public policy
2. EO diligence must always
exercised as to carriage
passengers.
3. Cannot be stipulated that CC will not
exercise any diligence or the goods
are transported at shippers risk.
4. As to gratuitous passenger EO
diligence must still be exercised BUT
CC may limit its liability.
8. EO DILIGENCE IN CARRAIGE BY SEA
- Impressed with special public duty
- Why exercise EO diligence? Because of public policy
and nature of its business.
- EO diligence as to carriage of goods extreme
measure of care and caution which persons of unusual
prudence and circumspection use to secure and
preserve their own property rights.
I. Seaworthiness EO diligence requires that
the ship that will transport passengers and
goods is seaworthy.
be
of Equipped for voyage Manned with
sufficient number of competent officers and
crew.
o Warranty of
seaworthiness of ship
and the P or Shipper of
goods is under no
obligation to conduct
inspection of the ship
and crew.
CC is obliged to
impliedly warrant
seaworthiness because
failure to do so is a
breach of contract of
carriage prescribed in
art. 1755.
o Required implied II. SEAWORTHINESS
warranty by CC of strength, durability and engineering skill
seaworthiness under made a part of ships construction and
the Insurance Code, continued maintenance, together with a
COGSA. competent and sufficient crew, which would
withstand vicissitudes and dangers of the
o Domestic shipping Act elements which might be reasonably be
of 2004 expected or encountered during her voyage
without loss or damage to her particular
- also requires all cargo.
vessels to be at all
Fitness of the vessel itself to
times in seaworthy
withstand the rigors of voyage, fitness
condition and comply
of the vessel to store the cargoes and
with the Safety
accommodate passengers to be
Standards
transported and that it is adequately
equipped and properly manned
Marina have the
power to inspect General Test of Seaworthiness
vessels and all its
equipments. W/N the ship and its
appurtenances are reasonably fit to
o No Duty to Inquire as to perform the services undertaken.
seaworthiness by The duty to make the ship seaworthy
Passengers or shippers + maintenance of the ship can be
delegated BUT shipowner must
exercise close supervision over its
o It is CCs Burden to men.
prove that the ship is
seaworthy. Such III. CARGOWORTHINESS the CC must not
evidence must be accept goods that cannot be properly
submitted and the transported in the ship the ship must be fit
presentation of to carry the cargo as a carrying receptacle.
certificates of
seaworthiness in not
enough to overcome
presumption of
negligence.
IV. PROPER MANNING for vessel to be
seaworthy it must be adequately equipped
and manned with sufficient number of
competent officers and crews
a. Art. 609 Code of Commerce
Captains, masters or patrons of
vessels must be:
Filipinos
Legal capacitated
Prove the skill, capacity
and qualifications needed to
command and direct the
vessel
Not DQ
If owner wants to be
captain without
qualifications limit
himself to financial
administration of vessel
and trust navigation to
qualified person.
V. ADEQUATE EQUIPMENT
VI. NO OVERLOADING take passengers and
cargoes that are within the carrying capacity
of vessel
VII. PROPER STORAGE vessel must be
suitable for the cargo and properly stored.
a. Carrying of deck cargo raises the
presumption of unseaworthiness
unless can be shown that the deck
cargo will not interfere with proper
management of the ship.
b. Shipper may consent to have his
goods be carried on deck and he
takes the risks of any damage or loss
sustained as a consequence of their
being so carried.
c. There are cases when the cargo are
to be stored on deck which is when by
nature of the cargo, the same cannot
be accommodated or cannot fit into
the hold in which case EO diligence
must be exercised with due regard to
the circumstance that goods are
stored on deck.
d. EO diligence include safeguarding
shipment from damage coming from
the natural elements like rainfall.
VIII. NEGLIGENCE OF THE CAPTAIN AND
CREW
a. Failure of CC to provide competent
captain and crew should be
distinguished from negligence of
captain and crew because limited
liability rule applies only when there is
negligence of the captain or crew and
liability of shipowner is limited only to
the value of vessel. If negligence of
captain and crew is grounded on
incompetence, limited liability rule
cannot be invoked because the
shipowner may be deemed negligent.
IX. RULES ON PASSENGER SAFETY
a. Memo Circ 114 of MARINA stated the
Areas of Concern
Emergency exits
Storage of handcarried
luggage
Storage of lifevests
Closure of watertight
doors, portholes, ramps and
manwholes.
Wearing the proper
prescribed uniform.
X. DUTY TO TAKE PROPER ROUTE follow
the usual reasonable or customary route. If
theres no evidence of usual route, route is
presumed to be the direct geographical
route.
a. Improper deviation if theres
agreement between shipper and
carrier as to the road over which
conveyance is to be made, the carrier
may not change the route UNLESS
there is force majeure.
Should he deviate
without cause, he shall be
liable for all the losses which
the goods he transports may
suffer from any other cause, in
addition to paying the
stipulated sum for such case.
If he deviate course due
to force majeure and it
produced increase in transpo
charges, he shall be
reimbursed for that increase
upon proof thereof.
b. In air transpo the stipulation in the
airway bill that the carrier assumes no
obligation to carry goods in specific
route is binding but there must be
some justification for such deviation
from route.
c. No improper deviation if voyage is
customarily in stages to replenish
ships fuel.
XI. TRANSHIPMENT transhipment of freight
without legal excuse ( even how competent
and safe the vessel in which transfer was
made) is a violation of the contract and
infringement of the right of shipper and
subjects CC to liability if freight is lost even
by cause otherwise excepted.
a. Act of taking cargo out of one ship
and loading it to another OR
the transfer of goods from one vessel
stipulated in the contract of
affreightment to another vessel
before the place of destination named
in the contract has been reached
the transfer for further transportation
from one ship or conveyance to
another.
b. Fact of transhipment is not dependent
upon the ownership of the
transporting ships but rather on the
fact of actual physical transfer of
cargo from one vessel to another.
c. CC who actually delivered may be
sued by shipper.
XII. DUTY TO INSPECT IN CARRAIGE BY
SEA.
a. A CC is entitled to fair representation
of the nature and value of the goods
to be carried with the concomitant
right to rely thereon and further noting
that a carrier has no obligation to
inquire in the correctness or
sufficiency of such information
b. To be subjected of unusual search,
other that routinary inspection there
must exist a proof that justify cause
 for apprehension that the baggage is
dangerous as to warrant exhaustive
inspection or even refusal of carriage
of the same.
c. It Is the failure of CCto act accordingly
in face of such proof that constitutes
the basis of CCs liability.
XIII. INSURANCE.
a. MARINA Rules
Compulsory insurance
of 200,000 for each passenger
imposed on shipowner /
operator.
It is the shipowner /
operator who is liable to pay
amount of 200,000 if no
insurance is obtained or
passenger is unmanifested.
Insurance coverage for
each survivor of maritime
accident 50,000 is required.
b. Insurance will attach from time
passenger sets foot on boarding
gangway or ladder leading to deack,
continues during entire course of
voyage covered by his ticket until
passenger left the disembarking
gangway or ladder at port of
destination.
It continue at ports of
call provided passenger stays
on board.
Should any passenger
in transit disembark at
intermediate port not his
destination insurance
deemed suspended the time
passenger leaves the ladder or
disembarking gangway and
remain suspended whilst on
land
Insurance restored at
time he sets foot on the
gangway or ladder to board the
vessel.
If he stays on board
vessel beyond port of
destination stated in his ticket
without permission from vessel
officers insurance shall
cease as to passenger
concerned the moment the
vessels anchor is raised to
commence voyage beyond
passengers destination
If vessel sinks at sea or
has to be abandoned due to
fire, stranding, agrounding, or
capsizing or other perils at sea,
insurance shall remain in full
force until passengers reach
or safely bought to nearest port
of refuge or safety.
XIV. EO DILIGENCE IN CARRIAGE BY LAND.
a. Roadworthiness CC to make sure
that vehicles are in good order and
condition.
b. Traffic rules CC fails to exercise EO
diligence if it fails to follow basic traffic
rules. in case of accident, for the
presumption of negligence in Art.
2185 to apply there must a proof of
violation of traffic rules. for the
 presumption of negligence in art.
1756 to apply all that is required is
proof of death or injury to passenger.
c. Diligence in the selection and
supervision.
In quasi-delict the ER
can invoke the defense of due
diligence in the selection and
supervision of the EE in order
to escape liability.
In Culpa contractual,
defence of due diligence in
selection and supervision of
EE is not available defense.
(Art. 1759) applies to all CC.
d. Duty to inspect depends on the
circumstances
Inquiry may be verbally
made as to the nature of a
passengers baggage when
such is not outwardly
perceptible, but beyond this,
constitutional boundaries are
already in danger of being
transgressed.
e. Insurance Insurance Code requires
that all motor vehicles be covered by
compulsory motor vehicle liability
insurance that compensates
passengers who died or injured as a
result of the operation of the motor
vehicle.
XV. CARRIAGE BY TRAIN Trains must
similarly exercise due diligence in the
performance of its functions.
a. Competent Employees. CC must
hire must hire competent engineers
and employees who must be poperrly
trained in operation of trains including
in the manufacturers operations
instructions and other safety rules
and to include the hiring of competent
security personnel for trains and
facilities.
Train operator is liable
for breach of contract if
negligence of employee
caused damage to passegers.
b. Platform must be safe.
c. Maintenance of trains and tracks
train operator shall be liable for
injuries caused by the defects in the
breaks or because of mechanical
defect in trains.
Part of function of train
operator is to keep the train
fully in the proper use and
function of the ride he or she is
to operate, including controls,
procedures for normal and
emergency operation, to
inspect trains before operating
it, to always test run trains
before operating them and
install or set emergency
procedures relative to
operation of trains.
Train operator shall
exercise EO diligence in the
maintenance of its tracks
operator will be liable if the
train was derailed because of
the defective railroad tracks
 causing injury to passengers.
Maintenance of tracks is
liability of operator and prudent
steps must be taken to prevent
accidents instead of waiting
until a life was finally lost
because of negligence.
d. Embarking and Disembarking
passengers. EO diligence while the
passenger is in the train and also in
giving the intended passengers
reasonable opportunity to enter and
disembark from it.
e. Negligence in the operation of the
train. EO diligence must be
exercised in the operation of the train.
f. Passengers who fell from the train
negligence of the CC is presumed
under such facts.
g. Persons and properties ran over by
trains
Not the duty of engineer
to stop the train every time that
he sees a person on or near
the tracks UNLESS there is
something in the appearance
and conduct of the person on
foot which would cause a
prudent man to anticipate the
possibility that such person
could not or would not avoid
the possibility of danger by
stepping aside.
h. Damage to properties and Persons
near the railroad tracks. railroad
company may be held liable if its
negligence caused destruction of the
neighboring properties through fire.
XVI. RAILROAD CROSSING CASES
a. Due Diligence on the part of train
operator includes due diligence in
traversing railroad crossing and in
maintaining the same.
b. Absence of safety devices and signs
operator may be held liable if did not
ensure the safety of other through
placing crossbars, signal lights,
warning signs and other permanent
safety barriers to prevent vehicles or
pedestrians from crossing there.
c. Required to install such devices only
at such places when reasonably
necessary and what is considered
reasonably necessary will depend on
the amount of travel upon the road,
the frequency with which the trains
pass over it and the view which could
be obtained of trains as they
approach the crossing and other
coditions.
d. Speeding running the train at an
excessive speed can be a proof of
negligence. it must regulate its
speed with proper regard for safety of
human lif and property considering
the surrounding circumstances
particularly the nature of the locality.
e. Obligations of 3rd persons
approaching crossings Mutual and
reciprocal obligation between the
railroad company and the public at
public crossings. Both are under
mutual obligation to exercise due care
to avoid causing or receiving injury.
Each is bound to exercise reasonable
or ordinary care commensurate with
the risk and danger involved.
Railroad track is a
warning of danger in itself and
that it is the duty of all persons
approaching a railroad track or
railroad crossing to look and
listen and take every
precaution before venturing
upon it.
While it is true that one
driving an automobile must
use his faculties of seeing and
hearing when nearing the
railroad crossing HOWEVER
the obligation to bring a full
stop vehicles moving in public
highways before traversing
any through street only
accrues from the time the
through street or crossing is
so designated and sign-
posted.
Each and every case on
questions of negligence is to
be decided in accordance with
the peculiar circumstances
that that present themselves.
There is no fast and hard rule.
There must be that
observance of that degree of
care, precaution and vigilance
which the situation demands.
f. No Imputed Contributory negligence.
negligence of driver cannot be
imputed to the passenger of the car.
Imputed liability is present only if the
driver is the employee of the
passenger.
XVII. PASSENGERs BAGGAGES
a. Baggage defined whatever articles
a passenger usually takes with him
for his own personal use, comfort and
convenience according to the habits
or wants of the particular class to
which he belongs, either with
reference to his immediate
necessities or to the ultimate purpose
of his journey.
b. Check-in baggage the rules
applicable to goods that are being
shipped are applicable to baggage
delivered to custody of the carrier as
an incident of a contract of carriage of
passenger.
c. Hand carried luggage
Art. 1998 the keepers
of hotels or inns shall be
responsible for them as
depositaries provided that
notice was given to them or to
their employees of the effects
brought by the guests and that
the guests took precautions
which hotel keepers advised
as to the care and vigilance of
their effects.
Art. 2000 -The
responsibility include loss of or
injury to the personal property
of the guests caused by
 servants or employees of hotel The duty to exercise EO
keepers as well as strangers diligence applies even for the
except those caused by force handcarried luggage. The fact
majeure. that the rules apply as to hand
Art. 2001 act of thief carried buggage does not that
or robber who has entered the CC is relieved of its duties
hotel is not deemed a force
majeure UNLESS done with
use of arms or through
irresistible force.
Art. 2002 - hotel keeper
is not liable for compensation if
the loss is due to acts of
guests, his family, servants or
visitors or if loss arises from
character of things brought
into the hotel.
Art. 2003 hotel keeper
cannot free himself from
responsibility by posting
notices to the effect that he is
not liable for articles brought
by guests. Any stipulation
between hotel keeper and
guest whereby responsibility of
hotel keeper is supressed is
void.
Thus, passenger is duty
bound
1. to notice to CC of
effects brought by
passenger and
2. to take precautions
which CC advised
relative to the care and
vigilance of their
effects.
CHAPTER 3 OBLIGATIONS OF
PASSENGER AND SHIPPER
I. DUTY TO EXERCISE DUE
DILIGENCE.
i. The shipper is bound to
pay the consideration in
the form of freight or
fare
ii. Passenger and shipper
are also bound to
exercise due diligence
in avoiding damage or
injury.
a. Negligence of shipper or passenger
shipper is obliged to exercise due
diligence in avoiding damage to the
goods that are being shipped or injury
to his person. HOWEVER, the CC
cannot impute the negligence of his
EE like its driver to the person or
entity that hired the carrier.
c. In absence of more definite
information, the CC has the
right to accept shippers marks
as to the contents of the
package offered for
transportation and is not
bound to inquire particularly
about them.
d. Damage caused by cargoes
information that CC will
receive will be used to prevent
damage to the vessel, to the
other cargoes and to
passengers or seafarers in the
vessel. Shipper ay be held
liable for any damage that may
have been caused solely by
the dangerous nature of the
cargoes or the defect in the
packing of cargoes.

II. DUTY TO DISCLOSE disclose

information relating to the cargo for
the CC to exercise proper care and
caution in relation to the cargo and
cargo of other shippers and
passengers.
a. CC is entitled to fair
representation of the nature
and value of the goods to be
carried with the concomitant
right to rely thereon and CC
has no obligation to inquire the
correctness or sufficiency of
that information.
b. Shipper to make proper
markings on cargoes.