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Continuing-offer Rule the duty of the drivers 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
Common persons, corporations, firms or May not stipulate exemption Kabit System
Carrier associations, engaged in the Extraordinary from liability (as it is contrary
business of transporting or (presumed to be at to public policy) Definition: an arrangement whereby a person who has been granted the
carrying passengers or goods or fault in case of loss certificate of public convenience allows other persons who own motor vehicles to
both, by land, air or water, for of effects; or death/ operate them under his license, sometimes for a fee or percentage of the
compensation, offering their injuries)
services to the public. earnings contrary to public policy
What makes it illegal:
Arrastre Handling of cargo from the time 1. Functions of operator
the goods are placed upon the are not trade & business
wharves of navigation Boundary System
Extraordinary
Custodian of goods 2. May be solidarily liable
nothing to do with trade or with carrier Payment of rental
navigation not illegal per se but it may produce reckless drivers
Stevedoring Involves the loading and
unloading of coastwise vessels Ordinary Obligations of a Common Carrier [ADE; accept, deliver, extraordinary diligence]
calling at the port
Carriage of Goods Carriage of Passengers
Travel Arranging and facilitating the May hold Travel agency &
Agency booking, ticketing & Ordinary carrier jointly and severally 1 to accept without discrimination
accommodation in a package tour liable
to seasonably deliver to destination at
Towage One vessel is hired to bring
Ordinary 2 (a) the stipulated time, otherwise
another vessel to another place
(b) at a reasonable time
Tramp a contract carrier which has (1) no regular and fixed routes and schedules but (2)
Service accepts cargo wherever and whenever the shipper desires, (3) is hired on a contractual 3 to the proper place to the proper destination
basis, or chartered by any one or few shippers under mutually agreed terms and (4)
usually carries bulk or break bulk cargoes 4 to the proper person
Line a common carrier which publicly offers services without discrimination to any user, has 5 to exercise extraordinary diligence
Service (1) regular ports of call/destination, (2) fixed sailing schedules and frequencies and (3)
published freight rates and attendant charges, and (4) usually carries multiple
consignments.
Limited Liability Rule Art. 375. The goods transported shall be especially bound to answer for the cost of
The liability of the shipowner may be limited to the value of the vessel transportation and for the expenses and fees incurred for them during their conveyance
May cover a situation involving only the negligence of the captain or crew (not and until the moment of their delivery.
including the failure of the carrier to provide competent captain and crew) This special right shall prescribe after eight days after the delivery has been made, and
once prescribed, the carrier shall have no other action that that corresponding to him as
In Carriage through sea, what route should be taken? an ordinary creditor.
Specific instance when a vessel can deviate from its route: Force majeure (p. 126)
Demurrage (p. 176)
When the deviation produced an increase in transportation charges, he shall be
reimbursed Lay Days the stipulated period within which to load and unload the cargoes
Should the carrier deviation without this cause: he shall be liable for all the losses Demurrage is the compensation provided for in the contract of affreignment for
which the goods the goods may suffer + sum, if stipulated for such case the detention of the vessel beyond the time agreed on for loading or unloading.
Essentially: Claim for damages for failure to accept delivery.
Exists only when stipulated in the contract
To whom extraordinary diligence extends to:
A. Generally:
1. Carrier and passenger
2. Carrier and shipper
3. sometimes the consignee, if he is the shipper himself
Art. 1739 rule: carrier may be excused from liability if the natural disaster is the Proximate Causation (p. 182)
proximate and only cause of the loss (however, it is still required to exercise due It is not an applicable defense to the common carrier because it is presumed
negligent the moment he failed to deliver the goods or transport the passenger to
diligence)
the proper destination.
The injured passenger need not prove causation to establish his case.
captain vs master
Kinds of Charter Parties:
1. Contract of Affreigtment Roles of a Captain [GTR] like the car hehe
A. Voyage 1. General agent of the shipowner
B. Time 2. Commander and technical director of the vessel, and
2. Bareboat charter 3. A representative of the country under whose flag he navigates
August 30
When arrival under stress improper (p. 663) Salvage
Art. 820 of the Code of Commerce. An Arrival shall not be considered lawful in the Definition: A service which one person rendered to the owner of a ship or goods, by
following cases: [FRDM] his own labor, preserving the goods or the ship which the owner or those entrusted
1. If the lack of provisions should arise from the failure to take the necessary with its care have either abandoned in distress at sea or are unable to protect
provisions for the voyage according to usage and customs, or if they should and secure it.
have been rendered useless or lost through bad stowage or negligence int heir Note that abandonment and necessary.
care.
2. If the risk of enemies, privateers, or pirates should not have been well- Kinds of Salvage Services: [VEP]
known, manifest, and based on positive and provable facts. 1. Voluntary, wherein the compensation is dependent upon success;
3. If the defect of the vessel should have arisen from the fact that it was not 2. Rendered under a contract for a per diem or per horam wage, payable at all
repaired, rigged, equipped, and prepared in a manner suitable for the events; or
voyage, or from some erroneous order of the captain. 3. Under a contract for a compensation payable only in case of success.
4. When malice, negligence, want of foresight, or lack of skill on the part of the
captain exists in the act causing the damage. Elements for a claim of salvage to be valid:
[MVSB]*sounds like NBSB
Arrival under stress *3 laid by the SC, 4th added by Sec. 1 of the Salvage Law
Definition: The arrival of a vessel at the nearest and most convenient port which 1. there must be a marine peril;
was decided upon after determining that there is well-founded fear of seizure, 2. the service is voluntarily rendered and is not required as an existing duty or
privateers, or pirates or by reason of any accident of the sea disabling it to from a special contract; and
navigate. 3. there must be success in whole or in part or that the service rendered
contributed to such success.
Steps to be taken in the determination 4. The vessel is shipwrecked beyond the control of the crew or shall have been
of the propriety of an arrival under stress: abandoned.
[DASDALO]
a) The captain should determine if there is a well-founded fear of seizure; Rights and Obligations of Salvors and Owners (p. 685)
b) The captain shall assemble the officers; 1. salvor is entitled to compensation for services rendered
c) The captain shall summon the persons interested in the cargo who may be 2. salvor has a lien upon the property salvaged whereby he is not bound to part
present and who may attend but without right to vote; with the possession of the vessel until he is paid his due compensation
d) The officers shall determine and agree if there is a well-founded reason. The 3. if salvor saves both ship and cargo, the salvage allowance should be charged
captain shall have the deciding vote; against the ship and cargo in proportion of their respective values
e) The agreement and minutes shall be signed and entered in the log book; 4. salvor has right of possession of a derelict for purposes of salvage claim, which
f) Objections and protests shall be entered in the minutes. he can maintain against the true owner
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5. owner of the derelict vessel does not abandon his right of ownership but his 3) by those who were in charge of it,
right of possession, 4) without any hope of recovering it (sine spe recuperandi), or
6. salvor shall convey and deliver the vessel or merchandise as soon as possible 5) without any intention of returning to it (sine animo revertendi).
to the: a) collector of customs, if the port has a collector, or b) provincial
treasurer or municipal mayor Definitions:
7. owner shall have the right to the delivery of the vessel or things saved, provided 1. Jetsam goods that were thrown off a ship which [ship ]was in danger
that he pays, or gives a bond to secure the expenses and the proper reward, debris deliberately thrown; short for Jettison
8. if owner does not make any claim within 3 months after publication by authories, claimed by discoverer
the thing saved shall be sold at a public auction (the proceeds shall go the 2. Flotsam goods that floated off the ship while the ship was in danger or
National Treasury less expenses and proper reward of the salvor) when it sank
9. owner of the salving vessel is also entitled to salvage reward for the use of his debris not deliberately thrown
vessel, although he may have not been present, claimed by owner
10. captain and crew of the salving vessel are also entitled to reward
3. Ligan goods left at sea on the wreck or tied to a buoy so that they can be
Limit of Salvage recovered later
In the absence of an agreement, or if the agreement is impugned for
excessiveness, the RTC shall fix the reward for salvage. Persons who take part in aviation:
Limit of reward: 50% of the net amount of the proceeds of the sale of the things 1. Air carrier or operator a person who undertakes, whether directly or
saved. indirectly, or by a lease or any other arrangements, to engage in air
In case of a public auction: transportation services or air commerce
Proceeds 2. Philippine air carrier air carrier who is a citizen of the Philippines
Less [CCAATS]: 3. Foreign air carrier or foreign air operator any operator, not being a
1) custody Philippine air operator, which undertakes, whether directly or indirectly, or by
2) conservation lease or any other arrangement, to engage in commercial air transport
3) advertisement, and operations within borders or airspace of the Philippines, whether on a
4) auction, scheduled or chartered basis.
5) whatever taxes or duties they should pay for their entrance, 4. Airman any individual:
6) salvage a) who engages, as the person in command, or as pilot, mechanic,
aeronautical engineer, flight radio operator or member of the
Derelict crew, in the navigation of the aircraft while under way, and
Definition: b) who is directly in charge of inspection, maintenance,
1) a ship or her cargo overhauling, or repair of aircraft, aircraft engine, propellers, or
2) which is abandoned and deserted at sea
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appliances and individual who serves in the capacity of aircraft Review: Seaworthiness, definition.
dispatcher or air traffic control operator. Domestic Shipping Act of 2004:
i. must be adequately equipped for the voyage, and
Laws governing common carriers: ii. manned with a sufficient number of competent officers and crew
1. primarily - NCC See: Insurance Code definition
2. suppletory Code of Commerce
Definitions:
Chapter 20: International Shipping 1. Public interest
NCC is the primary law 2. Public utility a business or service engaged in regularly supplying the public
COGSA is supplementary; passed by the Congress of US on April 16, 1936 with some commodity or service of public consequence such as electricity, gas,
water, transportation, telephone or telegraph service. It implies public use or
Duties of carrier: public service.
1. Under the NCC exercise extraordinary diligence in the performance of their Jurisprudence: privately owned and operated business whose services are
contractual obligations essential to the general public. When private properties are affected with
2. Under COGSA: [DsmfPB]: public interest, they cease to be juris private only.
i. exercise due diligence to: (a) make ship seaworthy, (b) properly man, 3. Public service, as defined by the PSA (p. 706)
equip and supply the ship, (c) make the holds and cooling chambers, and all
Sec. 13. (b) The term public service includes every person that now or hereafter may
other parts of the ship in which goods are carried, fit and safe for their own, operate, manage or control in the Philippines, for hire or compensation, with
reception, carriage, and preservation. general or limited clientele, whether permanent, occasional or accidental, and done for
ii. properly and carefully load, handle, stow, carry, keep, care for and general business purposes, any common carrier, railroad, street railway, traction railway,
discharge the goods carried; subway motor vehicle, either for freight or passenger, or both with or without fixed route
iii. after receiving the goods, issue to the shipper a bill of lading. and whether may be its classification, freight or carrier service of any class, express
service, steamboat or steamship line, pontines, ferries and water craft, engaged in
transportation of passengers or freight or both, shipyard, marine railways, marine repair
Can the common carrier escape liability by claiming unseaworthiness? (p. shop, [warehouse] wharf or dock, ice plant, ice-refrigeration plant, canal, irrigation system,
697) gas, electric light, heat and power water supply and power, petroleum, sewerage system,
1. Under COGSA Yes. COGSA provides the common carrier with defenses and wire or wireless communication systems, wire or wireless broadcasting stations and other
immunities. similar public services: Provided, however, that a person engaged in agriculture, not
2. Under the NCC Yes, only if it can present proof that the unseaworthiness otherwise public service, who owns a motor vehicles and uses it personally and/or
enters into a special contract whereby said motor vehicle is offered for hire or
was caused exclusively by any of the circumstances specified in Art.1734 NCC. compensation to a third party or third parties engaged in agriculture, not self or
The immunities enumerated in COGSA Sec. 4(2) are not controlling except themselves a public service, for operation by the latter for a limited time and for a specific
insofar as they are embraced under any of the defenses under Art. 1734. purpose directly connected with the cultivation of his or their farm, the transportation,
3. Defenses in COGSA that are not in the NCC processing, and marketing of agricultural products of such third part or third parties shall
not be considered as operating a public service for the purpose of this Act.
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(11)Restraint of trade or unfair competitions are not allowed.
Who can own a public utility?
Sec. 11. No franchise, certificate or any other form of authorization for the operation of a If carrier has upgraded the seat of a passenger, is it a breach of contract Yes, if
public utility shall be granted except to citizens of the Philippines or to corporations the consent of the passenger was not taken.
or association organized under Philippine laws at least 60% of whose capital is In Maritime Commerce, how much may be overloaded? AT ANY RATE, NONE.
owned by such citizens, nor shall such franchise, certificate or authorization be In Air transport, how much overbooking is allowed? 10%; what if all 110% are
exclusive in character for a longer period than 50 years. (Art. XII, 1987 Constitution)
present?
Bill of Rights for Air passengers
To determine whether a Philippine National:
1. Voting Control Test voting rights, AND General elements of Public service (p. 706)
2. Beneficial Ownership Test full beneficial ownership of the stocks The following are required for a person to be considered a public service:
1. the person must own, operate, manage or control in the Philippines public
Constitutional limitations of Public Use [CE50-CEFOT-PU] services which may include distribution of goods or rendering of services to the
(1) No franchise, certificate or authority (FCA) granted except to citizens of the Public;
Philippines or corporations or associations organized under the laws of the 2. the ownership, operation, management or control must be for hire or
Philippines at least 60% of whose capital is owned by such citizens; compensation, and
(2) No FCA shall be exclusive in character; 3. the ownership, operation, management or control must be done for general
(3) No FCA shall be for a longer period than 50 years; business purposes.
(4) Franchise or right granted only under the condition that it shall be subject to
amendment, alteration, or repeal by the Congress when the common good so Characteristics of a public service (*not asked)
requires; 1. may be permanent, occasional or accidental,
(5) The State shall encourage equity participation in public utilities; 2. may be with general or limited clientele.
(6) The participation of foreign investors shall be limited to their proportionate As to carriers:
share in its capital; 3. transport either freight or passenger, or both,
(7) All the executive and managing officers of such corporations or associations 4. with or without fixed route, and
must be citizens of the Philippines; 5. may be freighter or carrier service of any class, express service, steamboat or
(8) In times of national emergency, when the public interest so requires, the State steamship line, pontine, ferries, and water craft.
may temporarily take over or direct the operation of any privately owned
public utility or business affected with public interest; Who can regulate public utilities? (p. 713)
(9) The State may, in the interest of national welfare or defense, upon payment of Public Service Commission, created by the Public Service Act or
just compensation, transfer to public ownership utilities and other private Commonwealth Act No. 146. However, many of the PSA provisions have been
enterprises to be operated by the Government; repealed by subsequent issuances.
(10)Regulate or prohibit monopolies; is it an administrative agency?
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Powers of PSC are now distributed among the following government 11. (CAAP) Civil Aviation Authority of the Philippines maintenance and
agencies: operation of airports and other similar facilities registers aircrafts and other
1. DOTC issues certificates of public convenience for operation national incidents concerning the same and provides safety regulations in air
railroad carriers; other agencies are under this department; transportation;
UPDATES: 12. (PPA) Philippine Ports Authority wharves and ports;
1. RA 10844 (2016) 13. (LWUA) Local Water Utilities Administration water districts;
a. DOTC renamed Department of Transportation (DOTr) 14. Toll Regulatory Board toll operators.
b. Department of Information and Communications Technology (DICT)
all operating unites dealing with communications; The power to fix rates is a legislative function, whether by the legislature itself or
2. EO 32 (2017) delegated through an administrative agency.
a. DOTr and DICT now under National Disaster Risk Reduction and Questioning rates as fixed by administrative bodies by the Courts, is it not
Management Council (NDRRMC); both agencies play important roles encroachment of powers? No. Determination of whether the rates so fixed are
in providing life preservation systems based on acceptable standards, reasonable and just is a purely judicial question and is subject to the review
during or immediately after a disaster. of courts. (p. 731)
b. DICT responsible for the planning, development, and promotion of Potestas delegata non delegate potest What has been delegated cannot be
the countrys information and communications agenda in support of delegated. The power to fix the rates has been delegated to the regulatory
national development, and is indispensable in cascading timely, administrative agencies. As such, it cannot be further delegated by the said
accurate, and reliable information in times of emergency and disaster. administrative agencies.
3. LTFRB land transportation; just and reasonable standard in fixing rates the ultimate object. The only
4. LTO registration of drivers and motor vehicles; standard which the legislature is required to prescribe for the guidance of the
5. (MARINA) Maritime Industry Authority water transportation; administrative authority.
6. (PCG) Philippine Coast Guard concerned with safety in water
transportation; Take over public utilities (p. 726)
7. (NTC) National Telecommunications Commission communication utilities May be temporary or permanent
and services, radio communications systems, wire or wireless telephone and Requisites:
telegraph systems, radio and television broadcasting systems and other 1. in the interest of national welfare or defense,
similar public utilities; 2. upon payment of just compensation
8. (ERC) Energy Regulatory Commission electric or power distribution Temporary take-over happens in times of national emergencies
companies;
9. National Water Resources Council water resources; Who can declare State of Emergency?
10. (CAB) Civil Aeronautics Board air transportation particularly its economic 1. Congress, generally. It is the repository of emergency powers.
aspects; 2. The President, as allowed by Congress, subject to the following conditions:
[WPSN]
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(1) There must be a war or other emergency. its necessity depends on the enabling law. Ex. EPIRA
(2) The delegation must be for a limited period only. provides that its issuance shall be vested exclusively in the
(3) The delegation must be subject to such restrictions as the Congress may Congress. (p. 752)
prescribe. In Domestic air transport legislative franchise not
(4) The emergency powers must be exercised to carry out a national policy necessary for its operation; ratio: not provided in the law
declared by Congress.
There is a DUAL franchise and CPC REQUIREMENT with respect to broadcast media.
Can the State grant GMA power over ABSCBN in times of emergency?
Other definitions:
1. Emergency tsunami, typhoon, hurricane, and similar occurrences. The
existence of conditions suddenly intensifying the degree of existing danger to
life or well-being beyond that which is accepted as normal.
2. Ownership a relation in law by which a thing pertaining to one person is
completely subjected to his will in everything not prohibited by law or the
concurrence with the rights of another. (p. 720)