Liam Laurence D.

Lacayanga July 16, 2019

Transportation Law

OBLIGATIONS OF THE PARTIES

CONTRACT OF CARRIAGE OF GOODS

Common Carrier Shipper Consignee
Obligation to Accept Obligation to exercise Obligation to receive the
due diligence in avoiding goods
General: damage or injury
A common carrier granted General:
a certificate of public General: The consignee must
convenience is duty bound -If exercised, Carrier is receive the goods
to accept passengers or liable for all damages. delivered by the shipper.
cargo without any -contributory negligence on
discrimination. It is illegal the part of the shipper Exception:
for domestic ship operators would only mitigate the In case of delay through
to refuse to accept or carry carrier’s liability; it is not a the fault of the carrier, the
passengers or cargo total excuse. consignee is not bound to
without just cause. accept the goods or may
(Section 16, RA 9295) Exception: leave the goods in the
-If the negligence of the hands of the carrier. It
shipper is the proximate must be communicated to
Exception: and only cause of the loss, the carrier in writing. This
If it appears that the then, the carrier shall not right must be exercised
discrimination against the be liable. The carrier may between the time of delay
traffic in such goods is overcome the presumption and before the arrival of
reasonable and necessary: of negligence and may be the goods at its
1. dangerous objects or able to prove that it destination. The carrier
substances including exercised extraordinary must pay the full value of
dynamites and other diligence in handling the the goods as if they had
explosives goods or in transporting been lost or mislaid.
2. goods are unfit for the passenger.
transportation
3. acceptance would result
in overloading
4. contrabands or illegal
goods
5. goods injurious to health
6. goods will be exposed to
untoward danger like flood,
capture by enemies and
the like
7. goods like livestock will
be exposed to diseases
8. strike
9. failure to tender goods
on time

Obligation to Deliver Obligation to pay Obligation to pay

General: General: General:

-Where a carrier has made The shipper must pay the If it is agreed that the
an express contract, the stipulated fee stated in the consignee shall pay the
goods must be delivered bill of lading. fees, He must pay the
within a specified time shipper of the
otherwise he is liable for Exception: compensation agreed
any delay (indemnity for If it is agreed that the upon.
damages). payment shall be borne by
-In the absence of any the consignee.
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 bill of lading may be
considered).
-In the absence of a
special contract, a carrier
is NOT an insurer against
delay in transportation of
goods

Exception:
If the interruption is due to
fortuitous event of force
majeure. (Art. 698, NCC)

Duty to exercise
extraordinary diligence

General:
-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. (Art.
1755, NCC)
-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. (Art. 1736, NCC)

Exception:
-No other defense may be
raised. (Art. 1734):
1. Flood, storm,
earthquake, lightning,
or other natural disaster
or calamity
2. Act of the public
enemy in war, whether
international or civil
3. Act or omission of
the shipper or owner of
the goods
4. The character of the
goods or defects in the
packing or in the
containers
5. Order or act of
competent public
authority
6. Exercise of
extraordinary diligence.
 CONTRACT OF CARRIAGE OF PASSENGERS
Common Carrier Passenger
Obligation to Accept Obligation to observe diligence of a
good father of a family
General:
A common carrier granted a certificate of General:
public convenience is duty bound to
accept passengers or cargo without any The passenger must observe the diligence
discrimination. It is illegal for domestic of a good father of a family to avoid injury
ship operators to refuse to accept or carry to himself. (1761, NCC)
passengers or cargo without just cause.
(Section 16, RA 9295)

Obligation to transport Obligation to pay

General: General:
The common carrier is bound to transport The Passenger must pay the
passengers to the destination agreed compensation agreed upon in the
upon and without delay. contract of carriage.

Exception: Exception:
If delay is due to fortuitous event of force If it has been agreed that the carriage be
majeure. (Art. 698, NCC) gratuitous.

Duty to exercise extraordinary

diligence

General:
-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. (Art. 1755, NCC)
- The duty of a common carrier to provide
safety to its passengers so obligates it not
only during the course of the tripe, but for
so long as the passengers are within its
premises and where they ought to be in
pursuance of the contract of carriage.
(LRTA v. Navidad, 2003)

Exception:
-All persons who remain on the premises,
without just cause and not part of the
contract of carriage.
-When the negligence of the passenger is
the proximate and only cause of the injury
or death, the common carrier is not liable
if he exercised extraordinary diligence.
EXTRAORDINARY DILLIGENCE OF A COMMON CARRIER
A common carrier is bound to carry the passengers safely as far a human care
and foresight provide, using the utmost diligence of very cautious persons, with due
regard for all circumstances.
By Sea Seaworthy - The ship which will transport the passengers and goods
is seaworthy. Seaworthiness is implied
Cargoworthy - the carrier must not accept the goods that cannot
properly be transported in the ship. The ship must be efficiently strong
and equipped to carry the particular kind of cargo which she has
contracted to carry and her cargo must be so loaded that it is safe for
her to proceed on her voyage.
Adequate Equipment - With respect to vessels that carries
passengers, the Maritime Industry Authority prescribes rules which
provide for indispensable equipment and facilities. e.g. Exit doors, life
boats, live vests.
Competence of Captain and Crew - Failure on the part of the carrier
to provide competent captain and crew should be distinguished from
the negligence of the said captain and crew, because the latter is
covered by the Limited Liability Rule (liability of the shipowner may
be limited to the value of the vessel). If the negligence of the captain
and crew can be traced to the fact that they are really incompetent,
the Limited Liability Rule cannot be invoked because the shipowner
may be deemed negligent.

By Land Good Condition of Vehicle - Common carriers that offer

transportation by land are similarly required to make sure that the
vehicles that they are using are in good order and condition.
Rule on Mechanical Defects – If the carriers will replace certain
parts of the motor vehicle, they are duty bound to make sure that the
parts that they are purchasing are not defective. Hence, it is a long-
standing rule that a carrier cannot escape liability by claiming that the
accident that resulted because of a defective break or tire is due to a
fortuitous event. This is true even if it can be established that the tire
that was subject of a blow-out is brand new. The duty to exercise
extraordinary diligence requires the carrier to purchase and use
vehicle parts that are not defective.
Obedience on Traffic Rules - The carrier fails to exercise
extraordinary diligence if it will not comply with basic traffic rules. The
Civil Code provides for a presumption of negligence in case the
accident occurs while the operator of the motor vehicle is violating
traffic rules.
Case: Mallari Sr and Jr vs. CA
- The rule is settled that a driver abandoning his proper lane for
the purpose of overtaking another vehicle in an ordinary
 situation has the duty to see to it that the road is clear and not
to proceed if he cannot do so in safety
Duty to Inspect - There is no unbending duty to inspect each and
every package or baggage that is being brought inside the bus or
jeepney. The carrier is duty bound to conduct such inspection
depending on the circumstances.

By Air Airworthiness – An aircraft, its engines propellers, and other

components and accessories, are of proper design and construction,
and are safe for air navigation purposes, such design and
construction being consistent with accepted engineering practice and
in accordance with aerodynamic laws and aircraft science.
Case: Japan Airlines vs. CA
- The fact that the flight was cancelled due to fortuitous event
does not mean that the carrier’s duty already ended. The
carrier is still obligated to look after the convenience and
comfort of the passenger
Duty to Inspect - It is the duty of the carrier to make inquiry as to the
general nature of the articles shipped and of their value before it
consents to carry them; and its failure to do so cannot defeat the
shipper’s right to recovery of full value of the package if lost, in the
absence of showing of fraud or deceit on the part of the shipper.