CHAPTER 1

GENERAL CONSIDERATION

Contract of Transportation There is a contract of transportation when a person obligates himself to

transport persons or property from one place to another for a consideration. It may involve carriage of
passengers or carriage of goods.

2 KINDS:
1. CARRIAGE OF PASSENGERS

Parties: common carrier & passenger (carried gratuitously or not)

Passenger one who travels in a public conveyance by virtue of contract, express or implied, with the
carrier as to the payment of fare or that which is accepted as an equivalent thereof

Perfection:

2 types of contracts of carriage of PASSENGERS:

> contract to carry (agreement to carry the passenger at some future date) consensual contract and
perfected by mere consent

* AIRCRAFT perfected even without issuance of ticket as long as there was already meeting of minds
with respect to the subject matter and consideration

> Contract of Carriage

real contract; not until the facilities of the carrier are actually used can the carrier be said to have assumed
the obligation of the carrier; perfected by actual use.

Written contract not essential- The presence of a ticket or bill of lading or any written contract is not
necessary for the perfection of the contract of carriage. The SC explained that the bill of lading is not
essential to the contract, although obligatory by reason of the regulations of railroad companies, or as a
condition imposed in the contract by agreement of the parties themselves. Nevertheless, the bill of lading
is juridically a documentary proof of the stipulations and conditions agreed upon by both parties.

* AIRCRAFT perfected if it was established that the passenger had checked in at the departure counter,
passed through customs and immigration, boarded the shuttle bus and proceeded to the ramp of the aircraft
and baggage already loaded to the aircraft.

* Public Utility Bus or Jeepneys or Street Cars once it stops it is in effect making a continuous offer to
riders; perfected when passenger is already attempting to board the vehicle

* TRAINS perfected when a person:

a. purchased a ticket/ possess sufficient fare with which to pay for his passage
b. presented himself at the proper place and in a proper manner to be transported
c. has a bona fide intention to use facilities of the carrier

2. CARRIAGE OF GOODS
Parties: shipper & carrier

Shipper the person who delivers the goods to the carrier for transportation; pays the consideration or on
whose behalf payment is made

Consignee person to whom the goods are to be delivered. May be the shipper himself or a third person
who is not actually a party to the contract

Perfection:
> contract to carry goods consensual
> contract of carriage - act of delivery of goods ( goods are unconditionally placed in the possession and
control of the carrier and upon their receipt by the carrier for transportation)

CARRIER:
Common carriers (CC) (1732)
persons, corporations, firms or associations engaged in the business of carrying or transporting
passengers or goods or both, by land, water, or air, for compensation, offering their services to the
public. (NOT the means of transportation)
one that holds itself out as ready to engage in the transportation of goods for hire as a public
employment and not as a casual occupation.

PUBLIC SERVICE- The concept of common carrier under Art. 1732 may be seen to coincide neatly with
the notion of public service, under the Public Service Act that at least partially supplement the law on
common carriers set forth in the Civil Code.

Tests for determining WON a party is a common carrier of goods (FPIC vs. CA):
1. He must be engaged in the business of carrying goods for others as a public employment, and
must hold himself out as ready to engage in the transportation of goods for persons generally as a
business and not as a casual occupation.
2. He must undertake to carry good of the kind to which his business is confined.
3. He must undertake to carry by the method by which his business is conducted and over his
established roads.
4. Transportation must be for hire.

NSC vs CA: The SC reiterated the ruling that the test of a common carrier is that the carriage of goods or
passengers, provided it has space for all who opt to avail themselves of its transportation for a fee.

True test- the true test for a common carrier is not the quantity or extent of the business actually transacted,
or the number and character of the conveyances used in the activity, but whether the undertaking is a part
of the activity engaged in by the carrier that he has held out to the general public as his business or
occupation. If the undertaking is a single transaction, not a part of the general business or occupation
engaged in, as advertised and held out to the public, the individual or the entity rendering such service is
private, not a common carrier.

Characteristics of Common carriers (CC):

no distinction between one whose principal business is the transportation of persons/goods and
one who does such as an ancillary business (sideline)
no distinction between regular or scheduled basis and one offering such service on an occasional,
episodic or unscheduled business
still a CC even if services offered to a limited clientele (between the general public and a narrow
segment of the general population)
Still considered a CC even if he did not secure a Certificate of Public Convenience
No distinction as to the means of transporting, as long as it is by land, water or air
The Civil Code does not provide that the transportation should be by motor vehicle
Still a CC even if he has no fixed and publicly know route, maintains no terminals, and issues no
tickets
pipeline operators are CCs not necessarily motor vehicles (Case: First Philippine Industrial Corp.
vs. CA)

Case: Jose Mendoza vs. Philippine Airlines Inc

- The test of whether one is a common carrier by air is whether he holds out that he will carry for
hire, so long as he has room, goods of everyone bringing goods to him for carriage, not whether
he is carrying as a public employment or whether he carries to a fixed place
CHARTER PARTY:
- Contract by which an entire ship or some principal part thereof is let by the owner to another person
for a specified time or use.

Q: What is the effect of charter party?

A: It may transform a common carrier into a private carrier. However, it must be a bareboat or demise
charter where the charterer mans the vessel with his own people and becomes, in effect, the owner for the
voyage or service stipulated

2 types:

1. Contract of Affreightment
- involves the use of shipping space on vessels leased by the owner in part or as a whole,
to carry goods for another
- CC = observe extraordinary diligence; in case of loss, deterioration or destruction of goods
of goods, CCs are presumed to be at fault or have acted negligently
- 2 types
i. Time charter: vessel is leased to the charterer for a fixed period of time
ii. Voyage charter: ship is leased for a single voyage

2. Charter by demise/ Bareboat Charter

- whole vessel is let to the charterer with a transfer to him of its entire command and
possession and consequent control over its navigation including the master and the crew
who are his servants.
- charter includes both vessel and crewCC becomes private carrier (PC) insofar as that
particular voyage is concerned
- if it is already a PC- ordinary diligence in the carriage of goods will suffice
- PC = undertaking is a single transaction, not a part of the general business or occupation,
although involving the carriage of goods for a fee; NO presumption of negligence applies
whosoever alleges damage to or deterioration of the goods carried has the burden of
proving that the cause was the negligence of the carrier.

Distinction between Common Carriers and Private Carriers

COMMON CARRIER PRIVATE CARRIER
Extraordinary diligence in Ordinary diligence in the
the vigilance over the goods carriage of goods will suffice
they carry
In case of loss, destruction, No such presumption
or deterioration of goods, applies to private carriers,
they are presumed to have for whosoever alleges
been at fault or to have damage to or deterioration n
acted negligently; burden of of the goods carried has the
proving otherwise rests on onus of proving that the
them cause was the negligence of
the carrier
Cannot stipulate that it is May validly enter into such
exempt from liability for the stipulation
negligence of its agents or
employees

Factors to be considered whether a carrier is common/private:

Law applicable
o Common Civil Code
o Private contract
Diligence required
 o Common extraordinary diligence
o Private diligence of a good father of a family
Burden of proof in relation to negligence
o Common the carrier
o Private on the party having a claim against the carrier

Case: Planters Products, Inc. vs. CA

- It is therefore imperative that a public carrier shall remain as such, notwithstanding the charter of
the whole or portion of a vessel by one or more persons, provided the charter is limited to the ship
only, as in the case of a time-charter or voyage-charter. It is only when the charter includes both
the vessel and its crew that a common carrier becomes private

True Test of Common Carrier Is the carriage of passengers or goods, provided it has space, for all who
opt to avail themselves of its transportation service for a fee

Generally, private carriage is undertaken by special agreement and the carrier does not hold himself out
to carry goods for the general public

Case: Estela Crisostomo vs. CA and Caravan Travel and Tours International
- By definition, a contract of carriage is one whereby a certain person or association of persons
obligate themselves to transport person, thing or new from one place to another for a fixed price
- It is obvious from the above definition that respondent is not an entity engaged in the business of
transporting either passengers or goods and is therefore, neither a private nor a common carrier.
Its covenant with its customers is simply to make travel arrangements in their behalf.
- It is in this sense that the contract between the parties in this case was an ordinary one for services
and not one of carriage; it is thus not bound under the law to observe extraordinary diligence in the
performance of its obligation.

COMMON CARRIERS vs. TOWAGE, ARRASTRE AND STEVEDORING

Towage
- A vessel is hired to bring another vessel to another place
- e.g. a tugboat may be hired by CC to bring the vessel to a port (operator of tugboat not CC)
- in maritime law: towing for the mere purpose of expediting her voyage without reference to any
circumstances of danger
- The party that provide the service in a contract of towage is required to observe due diligence of a
good father of the family.
Arrastre
- Arrastre operators functions has nothing to do with the trade and business of navigation nor to the
use or operation of vessels
- Services are not maritime
- Functions of arrastre operator:
o Receive, handle, care for, and deliver all merchandise imported and exported, upon or
passing over Government-owned wharves and piers in the port
o Record or check all merchandise which may be delivered to said port ant shipside
o Furnish light, and water services and other incidental service in order to undertake its
arrastre service
- Such service is in face, no different from those of a depositary or warehouseman
- In Summa Insurance Corp, vs CA, the SC ruled that an arrastre operator should observe the same
diligence as that required of a common carrier and a warehouseman as that required of a common
carrier and a warehouseman as enunciated under Art.1733 of the CC and the Warehouse Receipts
Law.
Stevedoring
- involves the loading and unloading of coastwise vessels calling at the port.
>>> Common carriers are public utilities, impressed with public interest and concern subject to regulation
by the state.

- The diligence required of a stevedore is the diligence of a good father of a family.

- A stevedoring is not a common carrier for it does not transport goods or passengers; it is not akin
to a warehouseman for it does not store goods for profit.

Travel agency
- The contract between the travel agency and a passenger is a contract of service and not a contract
of carriage. The diligence required of a travel agency is not extraordinary diligence but only that of
a good father of a family.

Tramp service and line service

Line service as the operation of a common carrier which publicly offers services without discrimination to
any user, has regular ports of call/destination, fixed sailing schedules and frequencies and published freight
rates and attendant charges and usually carries multiple consignments.

On the other hand, tramp service has no regular and fixed routes and schedules but accepts cargo wherever
and whenever the shipper desires, is hired on contractual basis, or chartered by any one or few shippers
under mutually agreed terms and usually carries bulk or break bulk cargoes.

GOVERNING LAWS
- read summary of rules on page 40 of book

Article 1766 (Civil Code). In all matters not regulated by this Code, the rights and obligations of
common carriers shall be governed by the Code of Commerce and by special laws.

NATURE OF BUSINESS
- Common Carriers exercise a sort of public office
- Consequently, common carriers are subject to regulation by the State

REGISTERED OWNER RULE/REGISTRATION LAWS

- Governed by the Land Transportation and Traffic Code and administered by the Land
Transportation Office
- The registered owner of a vehicle is liable fro any damage caused by the negligent operation of the
vehicle although the same was already sold or conveyed to another person at the time of the
accident.
- The registered owner is liable to the injured party subject to his right of recourse against the
transferee or the buyer
- Applicable in case of lease
- Registered owner not liable if vehicle was taken form him without his knowledge and consent.

Q: what is the purpose of such law?

A: The main aim of motor vehicle registration is to identify the owner so that if any accident happens, or
that any damage or injury is caused by the vehicle on the public highways, responsibility therefor can be
fixed on a definite individual the registered owner.

KABIT SYSTEM
- The registered owner rule is applicable to people involved on a kabit system
- arrangement whereby a person who has been granted a certificate of public convenience allows other
persons who own motor vehicles to operate them under his license, sometimes for a fee or percentage
of the earnings --- contrary to public policy (thus VOID and INEXISTENT)
- parties to the kabit system cannot invoke the same as against each other either to enforce their illegal
agreement or to invoke the same to escape liability --- pari delicto rule
- having entered into an illegal contract, neither can seek relief from the courts and each must bear the
consequences of his acts
- also applicable to aircrafts and vessels basic rule that no person can operate a common carrier
without securing a certificate of public convenience and necessity.

Case: Dizon vs. Octavio

- the primary factors considered in the granting of a certificate of public convenience for the business
of public transportation is the financial capacity of the holder of the license, so that liabilities arising
from accidents may be duly compensated
- Thus, for the safety of passengers and the public who may have been wronged and deceived
through the baneful kabit system, the registered owner of the vehicle is not allowed to prove that
another person has become the owner so that he may be thereby relived of responsibility.

Pari Delicto Rule

- Persons who are parties to the kabit system cannot invoke the same as against each other
either to enfore their illegal agreement or to invoke the same to escape liability. This is
consistent with the time-honored maxim ex pacto illicito non oritur action ( no action arises
out of an illicit bargain).

Land Transportation Rules

-Accordingly, the conditions for the issuance of a Certificate of Public Convenience in favor of carriers that
are operating public utility vehicles include the following:

1. The PUV operator shall not allow any motor vehicle belonging to others to be registered and/or
operated under the certificate of public convenience granted.
2. The PUV operator shall not allow any illegal transfer of motor vehicle plate/s or illegally reproduce
the same (kambal plaka)
3. The PUV operator shall not allow the illegal use or transfer of chassis or engine motor for the use
of unauthorized PUVS. (pukpok chassis)

Aircrafts and Vessels

- It is believed that the policy which prohibits the kabit system may also be applied to vessel
and aircrafts that are covered by certificated of public convenience and necessity. It is a
basic rule that no person can operate a common carrier without securing a certificate of
public convenience and necessity. Hence, a person who do not have a certificate cannot
circumnavigate the law by using the certificate of another.
- With respect to aircrafts, Civil Aviation Authority Act of 2008 provides that a certificate of
registration of an aircraft is conclusive evidence of ownership except when ownership itself
is at issue. Hence, in action for damages, the name of the carrier appearing in the certificate
of registration is conclusive. No proof to the contrary can be established.

Boundary System
- In land transportation where the boundary system may be implemented by the common
carrier, the carrier cannot escape liability by claiming that the driver is a lessee. The carrier
cannot exempt himself on the ground he is a lessor because to tolerate such position would
not only abet flagrant violations of the Public Service Law but also to place the riding public
at the mercy of reckless and irresponsible drivers.
 CHAPTER 2
OBLIGATIONS OF THE PARTIES

Basic Obligations of the Carrier

1. To accept passengers and goods without discrimination
2. To seasonably deliver the goods or bring the passengers to the destination
3. To deliver the goods or bring the passengers to the proper place or destination
4. To deliver the goods to the proper persons
5. To exercise extraordinary diligence in the performance of its duties.

I. Obligations of the carrier

A. DUTY TO ACCEPT
- A common carrier granted a certificate of public convenience is duty bound to accept passengers
or cargo without any discrimination.
- It is illegal for domestic ship operators to refuse to accept or carry passengers or cargo without just
cause. (Section 16, RA 9295)

Note: In air transportation, passengers with confirmed tickets who were not allowed to board are provided
with denied boarding compensation and priority boarding rules.
No compensation for refusal if it is because of:
1. government requisition of the space
2. substitution of equipment of lesser capacity when required by operational and or safety and/or other
causes beyond the control of the carrier, and
3. if arrangements have been made for the passenger to take another flight in a comparable air
transportation which will arrive not later than three hours after the time of flight on which the
confirmed space is held is supposed to arrive. (Civil Aeronautics Board Economic Regulation)

Grounds for Valid Refusal to Accept Goods

- GR: common carriers cannot lawfully decline to accept a particular class of goods
- EXC: it appears that for some sufficient reason the discrimination against the traffic in such goods is
reasonable and necessary:
i. dangerous objects or substances including dynamites and other explosives
ii. goods are unfit for transportation
iii. acceptance would result in overloading
iv. contrabands or illegal goods
v. goods injurious to health
vi. goods will be exposed to untoward danger like flood, capture by enemies and the like
vii. goods like livestock will be exposed to diseases
viii. strike
ix. failure to tender goods on time

Case: Fisher v. Yangco

- factors in determining reasonable discrimination include:
i. suitability to the vessel for the transportation of such products;
ii. reasonable possibility of danger or disaster resulting from their transportation in the form and
under the conditions in which they are offered for carriage; and
iii. the general nature of the business done by the carrier.

(1) Hazardous and Dangerous Substances

- Carrier not properly equipped to transport dangerous chemicals or explosives may validly refuse to
accept the same for transport.
- Those which are not authorized by the Maritime Industry Authority to carry such goods may also
validly refuse the same for transport.
 - There must be a Special Permit to Carry from the MARINA. (accept only if the said cargoes are
covered by the necessary clearance from appropriate government agencies)

(2) Unfit for Transport

- Carriers may refuse to accept goods that are unfit for transportation
- These goods may by nature be unfit for transportation or are unfit because of improper packaging
or defect in their containers.
- However, carriers may accept the goods and limit its liability by stipulation.

If by reason of well-founded suspicion of falsity in the declaration as to the contents of the package carrier
should decide to examine and investigate it in the presence of witnesses, with the shipper and consignee
in attendance. If declaration of shipper is true, expenses occasioned by the examination and of repacking
the packages shall be for the account of the carrier

Even if the cause of the loss, destruction or deterioration of the goods should be caused by the character
of the goods, or the faulty nature of the packing or of the containers, the common carrier must exercise due
diligence to forestall or lessen the loss.

(3) Inspection

The SC ruled in Saludo Jr. vs. CA, that a common carrier 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 at this juncture
that a carrier has no obligation to inquire into the correctness or sufficiency of such information. The
consequent duty to conduct inspection thereon arises in the event that there should be reason to doubt the
veracity of such representation.

Duties to special classes of passengers

-there are special laws that give specific statutory rights to certain passengers because of the care that is
given to them by the State. These includes specific rules on persons with disabilities (PWD) and senior
citizens; carriers are mandated to ensure that PWDs and senior citizens shall have equal access to air
transportation services in accordance with BP. Blg 344 and the Expanded Senior Citizens Act of 2010.

B. DUTY TO DELIVER THE GOODS

Time of Delivery
- Where a carrier has made an express contract, the goods must be delivered within a specified time
otherwise he is liable for any delay (indemnity for damages).
- In the absence of any agreement, goods must be delivered at its destination within a reasonable time
(depending on the attending circumstances, nature of the goods; expected date of arrival in the BOL
may be considered).
- In the absence of a special contract, a carrier is NOT an insurer against delay in transportation of goods

Consequences/Effects of Delay
- Excusable delays in carriage suspend, but do not generally terminate, the contract of carriage; when
the cause is removed, the master must proceed with the voyage and make delivery.
- During the detention or delay, vessel continues to be liable as a common carrier, not a warehouseman,
and remains duty bound to exercise extraordinary diligence.

Article 1740 (NCC). If common carrier negligently delays in transporting the goods, a natural disaster
shall not free it from responsibility.

Article 1747 (NCC). If common carrier delays , without just cause, in transporting the goods or changes
the stipulated or usual route, the contract limiting its liability cannot be availed of in case of the loss,
destruction, or deterioration of the goods.

Note: read page 72 of book for other provisions.

(1) Abandonment
- In case of delay through the fault of the carrier, the consignee may refuse to accept the goods or
may leave the goods in the hands of the carrier. It must be communicated to the carrier in writing.
- This right must be exercised between the time of delay and before the arrival of the goods at its
destination.
- The carrier must pay the full value of the goods as if they had been lost or mislaid.

Note: If abandonment is not made, indemnification for the losses and damages by reason of the delay
cannot exceed the current price which the goods would have on the day and at the place they are to be
delivered.

The value of the goods which the carrier must pay in case of loss or misplacement shall be that what is
declared in the bill of lading.

Consignee must not defer the payment of the expenses and transportation charges of the goods otherwise
carrier may demand the judicial sale of the goods.

Case: Magellan Mfg. Marketing Corp. vs. CA

- Abandonment may also be made by virtue of stipulation or agreement between parties

(2) Rights of Passengers in Case of Delay

- As to the rights and duties of the parties strictly arising out of delay, the Civil Code is silent.
However, the Code of Commerce provides for such a situation:

ARTICLE 698. In case a voyage already begun should be interrupted, the passengers shall be obliged to
pay the fare in proportion to the distance covered, without right to recover for losses and damages if the
interruption is due to fortuitous event of force majeure, but with a right to indemnity if the interruption
should have been caused by the captain exclusively. If the interruption should be caused by the disability
of the vessel and a passenger should agree to await the repairs, he may not be required to pay any
increased price of passage, but his living expenses during the stay shall be for his own account.
Note: the carrier is liable for any loss or damage, including any pecuniary loss or loss of profit, which the
passenger may have suffered by reason thereof.

In case the vessel is not able to depart on time and the delay is unreasonable, the passenger may opt to
have his/her ticket immediately refunded without any refund service fee from the authorized issuing/ticketing
office.

Where and to Whom Delivered

a. Place Goods should be delivered to the consignee in the place agreed upon by the parties.

The shipper may change the consignment of the goods provided that at the time of ordering the change of
the consignee the bill of lading signed by the carrier be returned to him, in exchange for another wherein
the novation of the contract appears. The expenses occasioned by the change shall be for the account of
the shipper.

b. Consignee Delivery must generally be made to the owner or consignee or to someone lawfully
authorized by him to receive the goods for his account or to the holder of the negotiable instrument.

c. Delay to Transport Passengers A carrier is duty bound to transport the passenger with reasonable
dispatch

Effects of delayed and unfinished voyage in inter-island vessels:

vessel cannot continue or complete her voyage for any cause carrier is under obligation to
transport the passenger to his/her destination at the expense of the carrier including free meals
 and lodging before the passenger is transported to his/her destination; the passenger may opt to
have his/her ticket refunded in full if the cause of the unfinished voyage is due to the negligence of
the carrier or to an amount that will suffice to defray transportation cost at the shortest possible
route if the cause of the unfinished voyage is fortuitous event.
vessel is delayed in arrival at the port of destination free meals during mealtime
delay in departure at the point of origin due to carriers negligence; fortuitous event - free meals
during mealtime; carrier not obliged to serve free meals
carrier is not obliged to inform passengers of sailing schedule of the vessel

C. DUTY TO EXERCISE EXTRAORDINARY DELIGENCE

- A common carrier is required to faithfully comply with his obligation to deliver the goods and to ferry
the passenger to the point of destination.
- Goods should be delivered in the same condition that they were received and to transport the
passengers without encountering any harm or loss.
- Failure to exercise extraordinary diligence will result in breach of obligation of the carrier through
negligence.
- Read page 79-80 for provisions

ARTICLE 1755. A common carrier is bound to carry the passengers safely as far as human care and
foresight can provide, using the utmost diligence of very cautious persons, with a due regard for all the
circumstances. (Civil Code)

Meaning of Extraordinary diligence

-to prove the exercise of extraordinary diligence, the carrier must do more than merely showing that some
other party could be responsible for damage. It must be proved that it used all reasonable means to
ascertain the nature and characteristics of the goods tendered for transportation and it exercised due care
in handling them.
- Extraordinary diligence requires to render service with the greatest skill and foresight and to use all
reasonable means to ascertain the nature and characteristics of goods tendered for shipment, and to
exercise due care in the handling and stowage, including such methods as their nature requires.

Presumption of Negligence
- Two conditions for the birth of the presumption of negligence:
1. there exists a contract between the passenger or the shipper and the common carrier
2. the loss, deterioration, injury or death took place during the existence of the contract

Doctrine of Proximate Cause there is presumption of negligence

If the goods are lost, destroyed or deteriorated, common carriers are presumed to have acted negligently,
unless they prove that they observed extraordinary diligence. In case of death of or injuries to passengers,
common carriers are presumed to have been at fault or to have acted negligently, unless they prove that
they observed extraordinary diligence.

Effect of acquittal
-the acquittal of the employee of the common carrier in the criminal case is immaterial to the case of breach
of contract. Art. 31 of the New Civil Code provides that when the civil action is based on an obligation not
arising from the act or omission complained of as a felony, such civil action may proceed independently of
the criminal proceedings and regardless of the result of the latter.

- Duration of Duty:
(1) Carriage of Goods
- Due diligence should be exercised the moment the goods are delivered to the carrier.
- Goods are deemed delivered to the carrier when the goods are ready for and have been placed
in the exclusive possession, custody and control of the carrier for the purpose of their
immediate transportation and the carrier has accepted them
ARTICLE 1736. The extraordinary responsibility of the common carrier lasts from the time the goods are
unconditionally placed in the possession of, and received by the carrier for transportation until the same
are delivered, actually or constructively, by the carrier to the consignee or to the person who has a right to
receive them

ARTICLE 1737. The common carriers duty to observe extraordinary diligence over the goods remains in
full force and effect even when they are temporarily unloaded or stored in transit, unless the shipper or
owner has made use of the right of stoppage in transitu. (common carrier becomes a warehouseman
ordinary diligence)

ARTICLE 1738. The extraordinary liability of the common carrier continues to be operative even during the
time the goods are stored in a warehouse of the carrier at the place if destination, until the consignee has
been advised of the arrival of the goods and has had reasonable opportunity thereafter to remove them or
otherwise dispose of them.

Temporary Unloading or Storage

-the NCC provides that the common carriers duty to observe extraordinary diligence over the goods remain
in full force and effect even when they are temporarily unloaded or stored in transit.

Stoppage in Transitu
-By way of exception under Art. 1737, extraordinary diligence need not to be exercised over the goods that
are unloaded temporarily if the shipper or owner has made use of the right of stoppage in transit. T
-the right to stoppage in transit is the right of an unpaid seller to resume possession of the goods at any
time while the goods are in transit, and then he will become entitled to the same rights in regard to the
goods as he would have had if he had never parted with the possession. The right is available if:
1. The buyer of goods become insolvent
2.The unpaid seller has parted with the possession of the goods
3. The goods are still in transit.
Diligence up to the delivery
-the extraordinary responsibility of the common carrier lasts until the time the goods are actually or
constructively delivered by the carrier to the consignee or the person who has the right to receive them.

Delivery to customs authority

-Lu Do & Lu Ym Corp. vs. IV Binamira case ruled that generally the goods remain to be the responsibility
of the carrier if they are still in the hands of the customs officials. The Court believes however that the
parties may agree to limit the liability of the carrier considering that the goods have still to go through the
inspection of the customs authorities before they are actually turned over to the consignee.

(2) Carriage of Passengers

By trains the extraordinary responsibility of common carrier commences the moment the person who
purchases the ticket (or a token or card) from the carrier presents himself at the proper place and in a
proper manner to be transported with a bona fide intent to ride the coach.

* Mere purchase of a ticket does not of itself create the relation of carrier and passenger but it is an element
in the inception of the relation.

* A proper person who enters upon the carriers premises (station, ticketing office, or waiting room) with the
intention of becoming a passenger will ordinarily be viewed as assuming the status of a passenger.

* One who goes to the railroad station to inquire as to the possibility of securing passage on a freight train,
which he knows, by the rules of the company, is not allowed to carry passengers, and to secure passage
thereon if possible, is not entitled to the rights of a passenger but is a mere trespasser.

* One who rides upon any part of the vehicle or conveyance which is unsuitable or dangerous, or which he
knows is not intended for passengers, is not presumed to be a passenger.
* One who secures free passage by fraud or stealth is precluded from recovery for injuries sustained through
the negligence of the carrier, for he has not assumed the status of a passenger.

* A person riding on a freight train, on a drivers pass or similar arrangement, to look after livestock being
transported and as incident to such transportation is, generally regarded as a passenger for hire.

Motor vehicles like jeepneys and buses are duty bound to stop their conveyances for a reasonable
length of time in order to afford passengers an opportunity to board and enter, and they are liable for injuries
suffered by boarding passengers resulting from the sudden starting up or jerking of their conveyances while
they do so. Once a public utility bus or jeepney stops, it is making a continuous offer to bus riders.

Case: Dangwa Transportation Company vs. CA

- When the bus is not in motion there is no necessity for a person who wants to ride the same to signal
his intention to board. A public utility bus, once it stops, is in effect making a continuous offer to bus
riders
- The premature acceleration of the bus in this case was a breach of such duty

Case: La Mallorca vs. CA

- Duty to exercise utmost diligence with respect to passengers will not ordinarily terminate until the
passenger has, after reaching his destination, safely alighted from the carriers conveyance or had a
reasonable opportunity to leave the carriers premises. And what is reasonable time or a reasonable
delay within this rule is to be determined from all the circumstances.
Case: Aboitiz Shipping Corporation vs. CA
- Same ruling with La Mallorca vs. CA
- That reasonableness of time should be made to depend on the attending circumstances of the case,
such as the kind of common carrier, the nature of its business, the customs of the place, and so forth,
and therefore precludes a consideration of the time element per se without taking into account such
other factors
- The primary factor to be considered is the existence of a reasonable cause as will justify the presence
of the victim on or near the petitioners vessel. We believe there exists such a justifiable cause
(baggage were left)