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LAW ON TRANSPORTATION ANDPUBLIC UTILITIES

Contract of Transportation personobligates himself to transport persons orproperty from one place to another for aconsideration.

2 KINDS:

1. CARRIAGE OF PASSENGERS

Parties:common carrier & passenger

(carried gratuitously or not)

Perfecti!:

" c!tract t carr#(agreement tocarry the passenger at some futuredate) consensual contract andperfected by mere consent

* AIRCRAT perfected e!en "ithoutissuance of tic#et as long as there "asalready meeting of minds "ith respectto the sub$ect matter and consideration

" c!tract f carria$e real contract% not until the facilities of

the carrier are actually used can thecarrier be said to ha!e assumed theobligation of the carrier% perfected byactual use.

* AIRCRAT perfected if it "asestablished that the passenger hadchec#ed in at the departure counterpassed through customs andimmigration boarded the shuttle busand proceeded to the ramp of theaircraft and baggage already loaded tothe aircraft.

* 'ublic tility us or eepneys once itstops it is in e+ect ma#ing a continuous

o+er to riders% perfected "henpassenger is already attempting toboard the !ehicle

* TRAI,- perfected "hen a persona. purchased a tic#et/ possesssu0cient fare "ith "hich to payfor his passageb. presented himself at theproper place and in a propermanner to be transportedc. has a bona 1de intention touse facilities of the carrier

2. CARRIAGE OF GOODS

Parties:shipper & carrier

Perfecti!:2 contract to carry goods consensual2 contract of carriage 3 act of deli!ery ofgoods ( goods are unconditionallyplaced in the possession and control ofthe carrier and upon their receipt by thecarrier for transportation)

CARRIER:C%%! carriers &CC' &1()2'

persons corporations 1rms orassociations engaged in thebusiness of carrying ortransporting passengers orgoods or both by land "ater

or air for compensation o+ering their ser!ices to the public. (,4T the means oftransportation)

one that holds itself out as ready to engage in the transportation of goods for hireas a public employment and not as a casual occupation.

Tests for determining 54, a party is a common carrier of goods6. 7e 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 transportationof goods for persons generally as a business and not as a casual occupation.

8. 7e must underta#e to carry good of the #ind to "hich his business is con1ned.9. he must underta#e to carry by the method by "hich his business is conducted an

o!er his established roads:. transportation must be for hire.

Characteristics of Common carriers (CC) no distinction bet"een one "hose principal business is the transportation of

persons/goods and one "ho does such as an ancillary business still a CC e!en if ser!ices o+ered to a limited clientele

pipeline operators are CCs not necessarily motor !ehicles

C*ARTER PART+:3 contract by "hich an entire ship or some principal part thereof is let by the o"ner toanother person for a speci1ed time or use.

2 t#,es:

6. Contract of a+reightment in!ol!es the use of shipping space on !essels leased by the o"ner in part or as a "hole carry goods for another

3 CC ; obser!e e

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alsoapplicable to aircrafts and!essels basic rule that noperson can operate a commoncarrier "ithout securing acerti1cate of publiccon!enience and necessity.

C*APTER 2OBLIGATIONS OF T*E PARTIES

I. O35i$ati!s f t6e carrierA. BT T4 ACCD'T

A common carrier granted acerti1cate of public con!enience is dutybound to accept passengers or cargo"ithout any discrimination.

It is illegal for domestic shipoperators to refuse to accept orcarry passengers or cargo "ithout$ust cause. (-ection 6E RA F8FG)

In air transportation passengers"ith con1rmed tic#ets "ho "ere notallo"ed to board are pro!ided "ithdenied boarding compensation andpriority boarding rules. ,o

compensation for refusal if it isbecause of 6) go!ernmentre=uisition of the space 8)substitution of e=uipment of lessercapacity "hen re=uired byoperational and or safety and/orother causes beyond the control ofthe carrier and 9) if arrangementsha!e been made for the passengerto ta#e another Hight in acomparable air transportation "hich"ill arri!e not later than three hoursafter the time of Hight on "hich thecon1rmed space is held is supposedto arri!e. (Ci!il Aeronautics oardDconomic Regulation)

a. rounds for !alid refusal to acceptgoods

6. dangerousob$ects or substances includingdynamites and other e

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fee from the authoriLed issuing/tic#etingo0ce.

C. 57DRD A,B T4 574M BDNIODRDBa. 'laceoods should be deli!ered to theconsignee in the place agreed upon bythe parties.

The shipper may change theconsignment of the goods pro!ided thatat the time of ordering the change of theconsignee the bill of lading signed by

the carrier be returned to him ine

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ortuitous D!ent to be a !alid defensemust be established to be the pro

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Character of the goods and defects inthe pac#aging or in the containers aredefenses a!ailable to the commoncarrier. -imilarly the Carriage of ood b-ea Act pro!ides that carrier shall notliable for (6) "astage in bul# or "eightor any damages arising form theinherent defect =uality or !ice of goods%(8) insu0ciency of pac#ing% (9)insu0ciency or inade=uacy of themar#s or (:) latent defects nodisco!erable by due diligence.

7o"e!er ,CC li#e"ise pro!idesArt. 1(=2. E-e! if t6e 5ss/0estr7cti!/ r 0eterirati! f t6e$0s s6750 3e ca7se0 3# t6ec6aracter f t6e $0s/ r t6efa75t# !at7re f t6e ,aci!$ r t6ec!tai!ers/ t6e c%%! carrier%7st e>ercise 07e 0i5i$e!ce tfresta55 r 5esse! t6e 5ss.

Thus if the carrier accepted the $0s!i!$ t6e fact f i%,r,er,aci!$ r e-e! if t6e carrier 0es!t ! 37t t6e 0efect as!!et6e5ess a,,are!t 7,!r0i!ar# 3ser-ati! it is !t reli!ed

form liability for loss or in$ury to goodsresulting therefrom.

Cases6. 'roblem A carrier #no"ing that

some of a cargo of sac#s of ricehad big holes and others hadopenings $ust loosely tied "ithstrings resulting to the spillageof rice during the trip. Thusthere "as shortage in thedeli!ery of the cargoes. 5hensued due to the shortage thecarrier interposed a defensethat it "as not liable since theshortage "as due to the

defecti!e condition of thesac#s. Becide.Ans"er Carrier must stille

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A!# sti,75ati! 3etee! t6e 6te5ee,er a!0 t6e $7est 6ere3# t6eres,!si3i5it# f t6e fr%er as setfrt6 i! artic5es 1; t 21 iss7,,resse0 r 0i%i!is6e0 s6a55 3e-i0. &!'

Cases6. Bespite the fact that the carrier

ga!e notice that it shall not be

liable for baggage brought inby passengers the carrier isstill liable for lost hand3carriedluggage since it is go!erned byrules on necessary deposits.nder Art. 8SSSS theresponsibility of the depositaryincludes the loss of property ofthe guest caused by strangersbut not that "hich may proceedfrom force ma$eure. Moreo!erarticle 8SS6 considers theft asforce ma$eure if it is done "ithuse of arms or throughirresistible force.

8. D!en if the passenger did notdeclare his baggage nor pay itscharges contrary to theregulations of the buscompany the carrier is stillliable in case of loss of thebaggage. -ince it has the dutyto ei%ate ca7se t6eref 3ei!$ t!e$5i$e!ce f t6e c%%! carrier/ t6e 5atter s6a55 3e 5ia35e i! 0a%a$es/ 6ic6e-er/ s6a55 3e e7ita35# re07ce0.

Art. 1(91. T6e ,asse!$er %7st 3ser-e t6e 0i5i$e!ce f a $0 fat6er f a fa%it a-i0 i!87r# t 6i%se5f.

Art. 1(92. T6e c!tri37tr# !e$5i$e!ce f t6e ,asse!$er 0es !t 3ar rec-er#

0a%a$es fr 6is 0eat6 r i!87ries/ if t6e ,r>i%ate ca7se t6eref is t6!e$5i$e!ce f t6e c%%! carrier/ 37t t6e a%7!t f 0a%a$es s6a55 3e e7ita3re07ce0.

a. Last C5ear C6a!ce

A negligent carrier is liable to a negligent passenger in placing himself in peril if the carri"as a"are of the passenger?s peril or should ha!e been a"are of it in the reasonabe

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carrier may demand the $udicial sale ofthe goods transported in an amountnecessary to co!er the cost oftransportation and the e

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1tness of the !essel to storethe cargoes and accommodatepassengers to be transportedand that it is ade=uatelye=uipped and properlymanned.

eneral Test of -ea"orthiness5hether the ship and itsappurtenances are reasonably1t to perform the ser!iceunderta#en.

D

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"ith aerodynamic la"s and aircraftscience.

'roof of air"orthiness is not by itselfsu0cient to pro!e e

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8. 'arties may stipulate that thediligence to be e

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e

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8) "ithin 9 days from deli!ery ifdamage is not apparent

iling of claim is not condition

precedent. Thus regardless of"hether the notice of loss ordamage has been gi!en theshipper can still bring an action toreco!er said loss or damage"ithin one year after the deli!eryof the goods.

a) 'rescription Action for damages must be 1led

"ithin a period of one (6) yearfrom discharge of the goods.

The period is not suspended byan e

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3 cannot co3e

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ARTICND 6J:G. Any of the follo"ing orsimilar stipulations shall be consideredunreasonable un$ust and contrary topublic policy

(6) That the goods are transported atthe ris# of the o"ner or shipper%

(8) That the common carrier "ill not beliable for any loss destruction ordeterioration of the goods%

(9) That the common carrier need notobser!e any diligence in the custody ofthe goods%

(:) That the common carrier shalle

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of a passenger caused by the breach ofcontract by a common carrier.

ARTICND 6JEG. The 'ublic -er!iceCommission may on its o"n motion oron petition of any interested party afterdue hearing cancel the certi1cate ofpublic con!enience granted to anycommon carrier that repeatedly fails tocomply "ith his or its duty to obser!ee