TRANSPORTATION LAW

Course Outline
I.

CONCEPT OF COMMON CARRIERS

A. Definition (Art. 1732)
De Guzman v. Court of Appeals, G.R. No. L-47822, December 22, 1988, 168
SCRA 612 (1988)
Planters Products Inc. v. Court of Appeals, 226 SCRA 76 (1993)
Loadstar Shipping Co., Inc. v. Court of Appeals, 315 SCRA 339 (1999)
B. Tests/Characteristics
First Phil. Industrial Corp. v. Court of Appeals, 300 SCRA 661
National Steel Corp. v. Court of Appeals, 283 SCRA 45 (1997)
Phil. American Gen. Ins. Company v. PKS Shipping Company, G.R. No. 149038,
April 9, 2003
Asia Lighterage and Shipping, Inc. v. Court of Appeals, G.R. No. 147246,
August 19, 2003
Spouses Cruz v. Sun Holidays, Inc., G.R. No. 186312, June 29, 2010
C. Distinguished from private carrier
Home Insurance Co. v. American Steamship, 23 SCRA 24 (1968)
San Pablo v. Pantranco, 153 SCRA 199 (1987)
National Steel Corp. v. Court of Appeals, 283 SCRA 45 (1997)
D. Government regulation
KMU Labor Center v. Garcia, Jr., 239 SCRA 386 (1994)
Tatad v. Garcia, Jr., 241 SCRA 334 (1997)
E. Governing Law
Samar Mining Co., Inc. v. Nordeutscher Lloyd, 132 SCRA 529 (1984)
Eastern Shipping Lines v. IAC, 150 SCRA 464 (1984)
National Dev. Co. v. Court of Appeals, 164 SCRA 593 (1988)

II.

CONTRACTUAL EFFECTS
A. Vigilance over goods
1. Extra-ordinary diligence required of common carriers (Art. 1733)
a. Registered Owner Rule
Gelisan v. Alday, 154 SCRA 388 (1987)
Benedicto v. IAC, 187 SCRA 547 (1990)
Philtranco v. Court of Appeals, 273 SCRA 562 (1997)
b. Kabit System
Santos v. Sibug, 104 SCRA 520 (1981)
Lita Enterprises v. Court of Appeals, 129 SCRA 464 (1984)
Teja Marketing v. IAC, 148 SCRA 347 (1987)
c. Boundary System
Magboo v. Bernardo, 7 SCRA 952 (1963)
2. Liability of carriers for loss, destruction and deterioration of goods; Exceptions;
Presumption of negligence (Art. 1734-1735; 1739-1743)
Eastern Shipping Lines v. IAC, 150 SCRA 464 (1984)
Ganzon v. Court of Appeals, 161 SCRA 646 (1985)
Eastern Shipping Lines v. Court of Appeals, 196 SCRA 570 (1991)
Sarkies Tours Phils. v. Court of Appeals, 280 SCRA 58 (1997)
Valenzuela Hardwood & Industrial Supply v. Court of Appeals, 274 SCRA
642 (1997)
Yobido v. Court of Appeals, 281 SCRA 1 (1997)
3. Commencement, duration and termination of carriers responsibility over the
goods (Art. 1736-1738)
Compania Maritima v. Insurance Co. of North America, 12 SCRA 213 (1964)
Lu Do v. Binamira, 101 Phil. 120 (1957)
American President Lines Ltd. v. Klepper, 110 PHIL 243
Servando v. Phil. Steam, 117 SCRA 832 (1982)
Ganzon v. Court of Appeals, 161 SCRA 646 (1985)
Saludo, Jr. v. Court of Appeals, 207 SCRA 498 (1992)
Macam v. Court of Appeals, 313 SCRA 77 (1999)
4. Stipulations limiting carriers liability
a. Degree of diligence; Reasonable time in the delivery (Art. 1744-1745)
Maersk Line v. Court of Appeals, 222 SCRA 108 (1993)
b. Amount of liability (Art. 1749-1750)
Ysmael v. Barretto, 51 PHIL 90 (1927)

 Shewaram v. Philippine Airlines, 17 SCRA 606 (1966)

Ong Yiu v. Court of Appeals, 91 SCRA 223 (1966)
Sea Land Services, Inc. v. IAC, 153 SCRA 552 (1987)
Citadel Lines, Inc. v. Court of Appeals, 184 SCRA 544 (1990)
Everett Steamship Corp. v. Court of Appeals, 297 SCRA 496 (1998)
British Airways v. Court of Appeals, 285 SCRA 450 (1998)
H.E. Heacock Co. v. Macondray & Co., 42 PHIL 205 (1921)
c. Void stipulation (Art. 1745)
Sweet Lines v. Teves, 83 SCRA 361 (1978)
5. Passengers baggage (Art. 1754)
B. Safety of passengers
1. Utmost diligence required of common carriers (Art. 1755)
Nocum v. Laguna Tayabas Bus. Co. v. Court of Appeals, 83 SCRA 386
(1978)
Mecenas v. CA, 180 SCRA 83 (1989)
Negros Navigation Co., Inc. v. Court of Appeals, 281 SCRA 717 (1997)
Korean Airlines Co. Ltd. v. Court of Appeals, 234 SCRA 14 (1999)
Fortune Express, Inc. v. Court of Appeals, 305 SCRA 14 (1999)
Gatchalian v. Delim, 203 SCRA 126 (1991)
Del Castillo v. Jaymalin, 112 SCRA 629 (1982)
a. Doctrine of last clear chance
Philippine Rabbit Bus Lines v. IAC, 189 SCRA 158 (1990)
Bustamante v. Court of Appeals, 193 SCRA 603 (1991)
b. Accommodation passenger
Lara vs. Valencia, 104 SCRA 65 (1958)
c. Carrier not an insurer against all risks
Necessito v. Paras, 104 Phil. 75 (1958)
Japan Airlines v. Court of Appeals, 294 SCRA 19 (1998)
d. Res ipsa loquitur
Layugan v. IAC, 167 SCRA 363 (1988)
2. Commencement, duration and termination of carriers responsibility
La Mallorca v. De Jesus, 17 SCRA 739 (1966)
Aboitiz Shipping Co. v. Court of Appeals, 179 SCRA 95 (1989)
Mallari Sr. v. Court of Appeals, 324 SCRA 147 (2000)
3. Presumption of Negligence; Liability in case of death or injury to passengers;
Exceptions (Art. 1756-1758)
Bayasen v. Court of Appeals, 103 SCRA 197 (1981)
Cervantes v. Court of Appeals, 304 SCRA 27 (1999)
Calalas v. Court of Appeals, 332 SCRA 356 (2000)
Pestao v. Sumayang, 346 SCRA 870 (2000)
4. Negligence of intentional assault by carriers employee
Gillaco v. Manila Railroad Co., 97 Phil. 884 (1955)
Maranan v. Perez, 20 SCRA 412 (1967)
5. Passengers duty to observe diligence to avoid injury; Contributory negligence
PNR v. Court of Appeals, 139 SCRA 87 (1985)
Isaac v. Al Ammen Trans, 101 Phil 1046 (1957)
6. Injury to passenger due to acts of co-passenger or stranger
Bachelor Express, Inc. v. Court of Appeals, 188 SCRA 216 (1990)
Fortune Express, Inc. v. Court of Appeals, 305 SCRA 14 (1999)
III.

DAMAGES (Art. 1764)

A. Actual/Compensatory damages (Art. 2199, 2201 & 2203)
Cariaga v. LTB Co., 110 PHIL 346 (1960)
Villa Rey Transit, Inc. v. Court of Appeals, 31 SCRA 511 (1970)
Pan American World Airways v. IAC, 153 SCRA 521 (1987)
Gatchalian v. Delim, 203 SCRA 126 (1991)
1. Recovery for physical injuries
Soberano v. MRR & Benguet Auto Line, 18 SCRA 732 (1966)
Marchan v. Mendoza, 24 SCRA 888 (1968)
2. Damages in case of death
De Caliston v. Court of Appeals, 122 SCRA 958 (1983)
PAL v. Court of Appeals, 185 SCRA 110 (1990)
B. Moral damages (Art. 2206, 2216-17 & 2219-2220)
Cachero v. Manila Yellow Taxi Cab, 101 Phil. 523 (1957)

 Fores v. Miranda, 105 Phil. 266 (1959)

Lopez v. Pan American, 16 SCRA 431 (1966)
Ortigas Jr. v. Lufthansa, 64 SCRA 610 (1975)
Phil. Rabbit Bus Lines v. Esguerra, 117 SCRA 741 (1982)
Sweet Lines v. Court of Appeals, 121 SCRA 769 (1983)
Pan American World Airways v. IAC, 153 SCRA 521 (1987)
TransWorld Airlines v. Court of Appeals, 165 SCRA 143 (1988)
Armovit v. Court of Appeals, 184 SCRA 476 (1990)
PAL v. Court of Appeals, 106 SCRA 391
C. Exemplary damages (Art. 2229 & 2232-2233)
Prudenciado v. Alliance Transport, 148 SCRA 440 (1987)
Marchan v. Mendoza, 24 SCRA 888 (1968)
IV.

BILL OF LADING
A. Three-fold character
B. Delivery of goods
1. Period for delivery
2. Delivery without surrender of bill of lading
3. Refusal of consignee to take delivery
C. Period for filing claims
D. Period for filing actions

V.

MARITIME COMMERCE
A. Charter parties
1. Bareboat/demise charter
2. Time charter
3. Voyage/trip charter
B. Liability of ship owners and shipping agents
1. Liability for acts of captain
2. Exceptions to limited liability
C. Accidents and damages in maritime commerce
1. General average
2. Collisions
D. Carriage of Goods by Sea Act
1. Application
2. Notice of loss or damage
3. Period of prescription
4. Limitation of liability

VI.

PUBLIC SERVICE ACT

A. Definition of public utility
B. Necessity for certificate of public convenience
1. Requisites
a. Citizenship
b. Promotion of public interests
c. Financial capability
2. Prior operator rule
a. Meaning
b. Exceptions
c. Ruinous competition
C. Fixing of rate
1. Rate of return
2. Exclusion of income tax as expense
D. Unlawful arrangements
1. Boundary system
2. Kabit system
E. Approval of sale, encumbrance or lease of property

VII.

THE WARSAW CONVENTION

A. Applicability
B. Limitation of liability
1. Liability of passengers
2. Liability for checked baggage
3. Liability for hand-carried baggage
C. Willful misconduct