TRANSPORTATION LAW

I. GOVERNING LAWS

GOVERNING APPLICABILITY
LAW
Vessels of a minor nature not engaged in maritime
Civil code - commerce such as riverboats and those carrying
primary passengers from ship to shore, must be governed as to
the liability to the passengers, by the provisions of the
COASTWISE Civil Code or other appropriate special provisions of
SHIPPING law (Lopez v. Duruelo, GR No. L-29166, 1928)
Code of Vessels which are licensed to engaged in maritime
commerce (arts commerce or commerce by the sea whether foreign
349, 379, 573-734, or coastwise trade, are no doubt regulated by BOOK III
580, 806-845) - of the Code of Commerce (Lopez v. Duruelo, GR L-
suppletory 29166, 1928)
Under Art 1753 of the Civil Code, the law of the country
Civil Code - to which the goods are to be transported shall govern
Primary the liability of the common carrier for their loss,
destruction or deterioration. Since the subject shipment
was being transported from South Korea to the
Philippines, the Civil Code provisions shall apply.
(PhilAm Insurance Comp v. Heung-A shipping Corp, GR
187701, 2014)
While the civil code contains provisions making the
Code of common carrier liable for the loss, destruction or
Commerce- deterioration to the goods transported, it failed to
CARRIAGE FROM matters not outline the manner of determining the amount of such
FOREIGN PORTS covered by the liability. Art 372 of the Code of Commerce fills in the
TO PHILIPPINE CC gap, thus:
PORTS Art. 372. The value of the goods which the carrier must
pay in cases of loss or misplacement shall be
determined in accordance with that declared in the
bill of lading, the shipper not being allowed to present
proof that among the goods declared therein there
were articles of greater value and money. (PhilAm
Insurance Comp v. Heung-A shipping Corp, GR 187701,
2014)
COGSA The transportation must be:
1. Water/maritime transportation;
2. For the carriage of goods; and
3. Overseas/international/foreign
Note: It can be applied in domestic transportation if
agreed upon by the parties (paramount clause)

LAW OF THE COUNTRY OF DESTINATION

CIVIL CODE - If the carrier gas acted in accordance with a formal
PRIMARY order received rom the shipper or consignee of the
merchandise, both shall incur liability. The Code of
OVERLAND Commerce is inapplicable because it is intended to
TRANSPORTATION govern the rights and duties of shippers and carriers in
the absence of a contract. (Quinio v. Muñoz, GR L-
1722, 1965)
CODE OF it is intended to govern the rights and duties of shippers
COMMERCE and carriers in the absence of a contract. (Quinio v.
ARTS. 349 – 379 - Muñoz, GR L-1722, 1965)
SUPPLETORY
It is applicable when the place of destination and
WARSAW place of departure are both considered as Two High
CONVENTION Contracting Parties. Two High Contracting Parties
referred to herein were the signatories to the Warsaw
Convention and those that subsequently adhered to it.

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It established the International Civil Aviation
Organization (ICAO), a specialized agency of the
United Nations charged with the coordination and
CHICAGO regulation of international air travel. It laid down the
CONVENTION rules of airspace, aircraft registration and safety, and
details the rights of the signatories in relation to air
AIR travel. The Convention also exempts commercial air
TRANSPORTATION fuels from tax.
RA 9497 CIVIL An act creating the Civil Aviation Authority of the
AVIATION Philippines, authorizing the appropriation of funds
AUTHORITY ACT therefor and for other purposes. CAAP assumed all of
the ATOs powers, duties and rights, assets, real and
personal properties, funds and revenues. (ATO v. SPS
David, GR 159402, 2011)

RA 776, AN ACT The provisions of this act shall only apply to traffic rules,
TO REORGANIZE to military aircraft and airmen of the Philippines and of
THE CIVIL foreign countries and to foreign civil and public aircraft
AERONAUTICS and airmen other than those covered by Chapters III
BOARD AND THE and IV hereof.
CIVIL
AERONAUTICS
ASSOCIATION.

II. CARRIAGE OF PASSENGERS V. CARRIAGE OF GOODS

CARRIAGE OF GOODS CARRIAGE OF PASSENGERS

PARTIES
1. COMMON CARRIER 1. COMMON CARRIER
2. SHIPPER 2. PASSENGER
3. CONSIGNEE
DILIGENCE REQUIRED
EXTRAORDINARY DILIGENCE EXTRAORDINARY DILIGENCE
CAUSE OF LIABILITY
Delay in delivery, loss, destruction, or Death or injury to the passengers
deterioration of the goods
PRESUMPTION OF NEGLIGENCE
Art 1735 Civil Code Art 1755 Civil Code
DURATION OF LIABILITY
From the time the goods are The duty of the common carrier to provide
unconditionally placed in the possession of safety to its passengers so obligates not
and received by the carrier for only during the course of the trip BUT for so
transportation until the same are delivered long as the passengers are within its
actually or constructively by the carrier to premises where they ought to be in
the consignee or to the person who has pursuance to the contract of carriage.
the right to receive them. Art 1736
DEFENSES
1. Ordinary Circumstance: 1. Exercise of extraordinary diligence
Exercise of extraordinary diligence. 2. Caso fortuito
2. Special circumstance:
a. Flood, storm, earthquake, lighting or
other natural disaster or calamity;
b. Act of the public enemy in war,
whether international or civil;
c. Act or omission of the shipper or the
owner of goods;
d. Defects In the packaging or in the
containers;
e. Act of competent public authority

VALID STIPULATIONS
1. Reduction of degree of diligence to Stipulation limiting liability when a
ordinary diligence provided it will passenger is carried gratuitously, but not for
be: willful acts or gross negligence Art 1758
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a. In writing, signed by the shipper or
owner;
b. Supported by a valuable
consideration other than the
service rendered by the carrier
c. Reasonable, just and not contrary
to public policy
2. Fixed amount of liability: if it is
reasonable and just under the
circumstances and has been fairly
and freely agreed upon.
3. Limited liability for delay: only on
account of strikes and riots Art 1750
4. Stipulation limiting the value of the
goods appearing in the bill of
lading, unless a higher value is
being declared by the owner
VOID STIPULATIONS
1. the goods are transported at the Lessening the extraordinary responsibility of
risk of the owner/shipper; a common carrier for the safety of
2. That carrier will not be responsible passengers imposed by law by posting of
or liable for any loss, destruct or notices, by statements on tickets or
deterioration of the goods; otherwise.
3. That the carrier need not observe
any diligence in the custody of the
goods;
4. That the carrier shall not be
responsible for the acts or omissions
of its employee;
5. That the carrier’s liability for acts
committed by thieves or robbers
who do not act with grave or
irresistible threat, violence, force is
dispensed with or diminished;
6. That carrier is not responsible for the
loss, destruction or deterioration of
the goods on account of the
defective condition of the car,
vehicle, ship or other equipment
used in the contract of carriage

III. RULES GOVERNING THE BAGGAGE OF PASSENGERS

HAND CARRIED CHECKED-IN

LEGAL NATURE OF THE BAGGAGE
Necessary Deposit Considered as goods
REQUIRED DILIGENCE BY THE COMMON CARRIER
Diligence of a depositary Extraordinary Diligence
(Ordinary Diligence)
APPLICABLE RULES
Arts 1998 and 2000 – 2003 Arts 1733 - 1753

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IV. LIABILITIES OF COMMON CARRIERS FOR ACTS OF ITS EMPLOYEES AND
OF OTHER PASSENGERS OR STRANGERS

FOR ACTS OF ITS EMPLOYEES ACTS OF OTHER PASSENGERS OR

STRANGERS
REQUIRED DILIGENCE
Extraordinary Diligence Ordinary Diligence
NATURE OF LIABILITY
Tort; The employee must be on duty at the Not absolute. Limited by 1763.
time of the act (Maranan v. Perez, GR L-
22272) Note: The carrier is liable when its personnel
allowed a passenger to drive the vehicle
causing it to collide with another vehicle
resulting to the injuries suffered by the other
passengers (MRR v. Ballesteros GR No. L-
19161, 1966)

V. LIABILITY OF COMMON CARRIERS (Fabre v. Court of Appeals GR 111127)

BREACH OF QUASI-DELICT / CRIMINAL

CONTRACT/ CULPA NEGLIGENCE /
CULPA AQUILIANA CULPA CRIMINAL
CONTRACTUAL
WHO IS/ARE Only the carrier is The carrier and the The driver is primarily
LIABLE primarily liable and driver are solidarily liable. The carrier is
not the driver liable as joint subsidiarily liable
because there is no tortfeasors only if the driver is
privity between the convicted and
driver and the declared insolvent
passenger
BASIS OF Art. 1759 NCC Art 2180, NCC Art 100, RPC
LIABILITY
DEFENSES Defense of due
diligence in the
selection and
supervision of
employees is
available.

XPN: Maritime tort

resulting in collision.

VI. FILING OF CLAIMS: CIVIL CODE V. COGSA

ART 366 COGSA SEC 3 (6)

APPLICABILITY
1. Domestic/ inter- 1. International/overseas/foreign (from
island/coastwise transportation; foreign country to Philippines)
2. Land, water, air transportation; 2. Water/maritime transportation
3. Carriage of goods 3. Carriage of goods
NOTICE OF DAMAGE
1. Condition precedent 1. Not a condition precedent;
2. 24 hr period for claiming latent 2. 3-day period for claiming latent
damage damage
PRESCRIPTIVE PERIOD
None provided. Civil Code rule One year from the date of delivery or
on prescription will apply the date when the vessel left port or
from the date of delivery to the arrastre

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