Aid in Comm Law
Aid in Comm Law
Aid in Comm Law
Parties
1. Common carrier 1. Common carrier
2. Shipper 2. Passenger
3. Consignee
Cause of liability
Delay in delivery, loss, destruction, Death or injury to the passengers
or deterioration of the goods
Duration of liability
From the time the goods are The duty of a common carrier to
unconditionally placed in the provide safety to its passengers so
possession of, and received by the obligates it not only during the
carrier for transportation until the course of the trip, but for so long as
same are delivered actually or the passengers are within its
constructively by the carrier to the premises and where they ought to
consignee or to the person who has be in pursuance to the contract of
the right to receive them. (Art. 1736) carriage. (LRTA v. Navidad, [2003])
It remains in full force and effect All persons who remain on the
even when they are temporarily premises within a reasonable time
unloaded or stored in transit unless after leaving the conveyance are to
the shipper or owner has made use be deemed passengers, and what is
of the right of stoppage in transitu. a reasonable time or a reasonable
(Art. 1737) delay within this rule is to be
It continues to be operative even determined from all the
during the time the goods are stored circumstances, and includes a
in a warehouse of the carrier at the reasonable time to see after his
place of destination until the baggage and prepare for his
consignee has bee advised of the departure. (La Mallorca v. CA, 17
arrival of the goods and has had SCRA 739 ; Abiotiz Shipping
reasonable opportunity thereafter to Corporation v. CA, 179 SCRA 95)
remove them or otherwise dispose It is the duty of common carriers of
of them. (Art. 1738) passengers to stop their
Delivery of goods to the custom conveyances a reasonable length of
authorities is not delivery to the time in order to afford passengers
consignee. (Lu Do v. Binamira, 101 an opportunity to enter, and they are
Phil 120) liable for injuries suffered from the
sudden starting up or jerking of their
conveyances while doing so. The
duty which the carrier of passengers
owes to its patrons extends to
persons boarding the cars as well
as to those alighting therefrom
(Dangwa Trans Co., Inc. vs. CA 202
SCRA 574).
COMMERCIAL LAW COMMITTEE
CHAIRPERSON: Garny Luisa Alegre ASST. CHAIRPERSON:Jayson O’S Ramos EDP: Beatrix I. Ramos SUBJECT HEADS:
Marichelle De Vera (Negotiable Instruments Law); Jose Fernando Llave (Insurance); Aldrich Del Rosario (Transportation Laws);
Shirley Mae Tabangcura, Bon Vincent Agustin (Corporation Law); Karl Steven Co (Special Laws); John Lemuel Gatdula (Banking Laws); Robespierre CU (Law
on Intellectual Property)
San Beda College of Law 58
MEMORY AID IN COMMERCIAL LAW
Presumption of negligence
IMPORTANT CONCEPTS:
1. Transportation documents 2. Checked-in baggage
a. Passenger ticket GENERAL RULE: $20 per kilogram
b. Baggage check EXCEPTION: In case of special declaration of
c. Air way bill value and payment of a supplementary sum by
2. Liability of the carrier for damages consignor, carrier is liable to not more than the
a. Death or injury to passengers declared sum unless it proves the sum is
b. Loss or damage to baggage or goods greater than actual value.
c. Delay 3. Hand-carried baggage
3. Successive carrier agreement $1000/passenger
4. Jurisdiction
4. Goods to be shipped
5. Combined transportation agreement
GENERAL RULE: $20 per kilogram
EXCEPTION: In case of special declaration of
PASSEN BAGGAG AIR
GER E CHECK WAYBILL value and payment of a supplementary sum by
TICKET consignor, carrier is liable to not more than the
declared sum unless it proves the sum is
Passenge Checked- Goods to
greater than actual value.
r in be
An agreement relieving the carrier from In United Airlines vs. Uy the two-year
liability or fixing a lower limit is null and void. prescriptive period was not applied where the
(Art. 23) airline employed delaying tactics.
Carrier is not entitled to the foregoing limit if
the damage is caused by willful misconduct or RULE IN CASE OF VARIOUS SUCCESSIVE
default on its part. (Art. 25) CARRIERS
1. Carriage of passengers
Thus, the WC does not operate as an GENERAL RULE: Action is filed only against
exclusive enumeration of the instances of an the carrier in which the accident or delay
absolute limit of the extent of liability. It does not occurred.
preclude the application of the Civil Code and EXCEPTION: Agreement or contract whereby
other pertinent local laws. It does not regulate the first carrier assumed liability for the whole
or exclude liability for other breaches of contract journey.
by the carrier, or misconduct of its employees, 2. Carriage of baggage or goods
or for some particular or exceptional type of a. Passenger or consignor can file an action
damage. (Alitalia vs. CA) against the first carrier and the carrier in
which the damage occurred
In PanAm v. IAC, the WC was applied as b. Passenger or consignee can file an
regards the limitation on the carrier’s liability, action against the last carrier and the
there being a simple loss of baggage without carrier in which the damage occurred.
any improper conduct on the part of the officials These carriers are jointly and severally
or employees of the airline or other special liable. (Art. 30)
injury sustained by the passenger.
A contract of international carriage by air,
In KLM Royal v. Tuller, the WC has invariably although performed by different carriers under a
been held inapplicable, or as not restrictive of series of airline tickets constitutes a single
the carrier’s liability, where there was operation. Members of the International Air
satisfactory evidence of malice or bad faith Transportation Association (IATA) are under a
attributable to its officers and employees. general pool partnership agreement wherein
(Alitalia vs. IAC) they act as agent of each other in the issuance
of tickets to contracted passengers to boost
ticket sales worldwide and at the same time
provide passengers easy access to airlines
ACTION FOR DAMAGES which are otherwise inaccessible in some parts
1. Notice of claim of the world. (American Airlines vs. CA)
A written complaint must me made within:
a. 3 days from receipt of baggage Under a general pool partnership agreement,
b. 7 days from receipt of goods the ticket-issuing airline is the principal in a
c. In case of delay, 14 days from receipt of contract of carriage while the endorsee-airline is
baggage/goods the agent. The obligation of the former
The complaint is a condition precedent. remained and did not cease even when the
Without the complaint, the action is barred breach occurred not on its own flight but on that
except in case of fraud on the part of the carrier. of another airline which had undertaken to carry
(Art. 26) the passengers to one of their destinations.
(China Airlines vs. Chiok)
2. Prescriptive period
Action must be filed within 2 years from: JURISDICTION
a. date of arrival at the destination At the option of the plaintiff, the action for
b. date of expected arrival damages may be filed in the:
c. date on which the transportation stopped. a. Court of domicile of the carrier;
(Art. 29) b. Court of its principal place of business;
c. Court where it has a place of business
through which the contract has been
made; or
d. Court of the place of destination. (Art. recovering it, or without any intention of
28(1)) returning to it.
NOTE: It is the passenger’s “ultimate
destination” not “an agreed stopping place” that The intention of those in charge must be
determines the country where suit is to be filed. ascertained. If those in charge left with the
The forum of action provided in Art. 28(1) is a intention of returning, or of procuring assistance,
matter of jurisdiction rather than of venue. the property is not derelict, but if they quitted the
(Santos III vs. Northwest; 2A C.J.S.) property with the intention of finally leaving it, it
is derelict and a change of their intention and an
V. SALVAGE LAW (Act No. 2616) attempt to return will not change its nature
(Erlanger & Galinger vs. Swedish East Asiatic
SALVAGE Co. Ltd.).
Two concepts:
1. Services one person renders to the owner of If it is clear that the intention to return is
a ship or goods, by his own labor, preserving the slight, the salvage which was done thereafter is
goods or the ship which the owner or those considered valid. (Notes and Cases on the Law
entrusted with the care of them have either on Transportation and Public Utilities, Aquino, T.
abandoned in distress at sea, or are unable to & Hernando, R.P. 2004 ed. p. 616)
protect or secure.
2. Compensation allowed to persons by whose CONTRACT OF TOWAGE
voluntary assistance a ship at sea or her cargo A contract whereby one vessel, usually
or both have been saved in whole or in part from motorized, pulls another, whether loaded or not
impending sea peril, or such property recovered with merchandise, from one place to another, for
from actual peril or loss, as in cases of a compensation. It is a contract for services
shipwreck, derelict or recapture. rather than a contract of carriage.
Requisites:
1. Valid object of salvage;
2. Object must have been exposed to SALVAGE TOWAGE
marine peril (not perils of the ship); Governed by Governed by
3. Services rendered voluntarily (neither an special law Civil Code on
existing duty nor out of a pre-existing (Act No. 2616) contract of
contract); lease
4. Services are successful, total or partial. Requires Success is not
Subjects of Salvage: success, required
1. Ship itself; otherwise no
2. Jetsam – goods which are cast into the sea, payment
and there sink and remain under water; Must be done Only the
3. Floatsam or Flotsam – goods which float with the consent of the
upon the sea when cast overboard; consent of the tugboat owner
4. Ligan or Lagan – goods cast into the sea tied captain/crewm is needed
to a buoy, so that they may be found again by en
the owners (p.173, Judge Diaz). Vessel must be Vessel need
Persons who have no right to a reward for involved in an not be involved
salvage: accident in an accident
1. Crew of the vessel saved; Fees Fees belong to
2. Person who commenced Salvage in spite of distributed the tugboat
opposition of the Captain or his representative; among owner
3. In accordance with Sec. 3 of the Salvage crewmen
Law, a person who fails to deliver a salvaged
vessel or cargo to the Collector of Customs. RULES ON SALVAGE REWARD
1. The reward is fixed by the RTC judge in the
Derelict – a ship or her cargo which is absence of agreement or where the latter is
abandoned and deserted at sea by those who excessive. (Sec. 9)
are in charge of it, without any hope of 2. The reward should constitute a sufficient
compensation for the outlay and effort of the 6. Ice plants; and
salvors and should be liberal enough to offer 7. Public markets.
an inducement to others to render services
in similar emergencies in the future. PUBLIC SERVICE
3. If sold (no claim being made within 3 months A person who owns, operates, manages or
from publication), the proceeds, after controls in the Philippines for hire or
deducting expenses and the salvage claim, compensation, with general or limited clientele,
shall go to the owner; if the latter does not whether permanent, occasional or accidental,
claim it within 3 years, 50% of the said and done for general business purposes, any
proceeds shall go to the salvors, who shall common carrier or public utility, ice plants,
divide it equitably, and the other half to the power and water supplies, communication and
government. (Secs. 11-12) similar public services. (Sec. 13b, CA 146)
4. If a vessel is the salvor, the reward shall be A casual or incidental service devoid of public
distributed as follows: character and interest is not brought within the
a. 50% to the shipowner; category. The question depends on such factors
b. 25% to the captain; and as the extent of services, whether such person
or company has held himself or itself out as
ready to serve the public or a portion of the
c. 25% to the officers and crew in proportion public generally. (Luzon Stevedoring vs. PSC)
to their salaries. (Sec. 13)
NOTE: The Public Service Commission created
Taking passengers from a sinking ship, under the Public Service Law has already been
without rendering any service in rescuing the abolished under P.D. No. 1 and other issuances.
vessel, is not a salvage service, being a duty of It has been replaced by the following
humanity and not for reward. government agencies: LTO; LTFRB; ATO; BOE;
NTC; NEA; ERB; NWRC; CAB; and MIA.
VI. PUBLIC SERVICE ACT
(C.A. No. 146)
CERTIFICATE CERTIFICATE
PURPOSES: OF PUBLIC OF PUBLIC
1. To secure adequate, sustained service CONVENIENC CONVENIENC
for the public at the least possible cost; E (CPC) E AND
2. To protect the public against NECESSITY
unreasonable charges and poor, (CPCN)
inefficient service; An An
3. To protect and secure investments in authorization authorization
public services; issued by the issued by the
4. To prevent ruinous competition. appropriate appropriate
government government
AUTHORITY TO OPERATE PUBLIC agency for the agency for the
SERVICES operation of operation of
GENERAL RULE: No public service shall public services public service
operate without having been issued a certificate for which no for which a
of public convenience or a certificate of public franchise, prior franchise
convenience and necessity. either is required by
EXCEPTIONS: municipal or law; e.g.
1. Warehouses; legislative, is telephone and
2. Animal drawn vehicles and bancas required by other services.
moved by oar or sail; law, e.g.,
3. Airships, except for the fixing of common
maximum rates for fare and freight; carriers.
4. Radio companies, except for rates fixing;
5. Public services owned or operated by the A CPC or a CPCN constitutes neither a
government, except as to rates fixing; franchise nor a contract, confers no property
right, and is a mere license or a privilege. The accuracy of all investigation;
holder of said certificate does not acquire a meters and all 4. Valuation of
property right in the route covered thereby. Nor measuring properties of
does it confer upon the holder any proprietary appliances; public utilities;
right or interest or franchise in the public 5. Issuance 5. Examination
highways. Revocation of this certificate deprives of orders and test of
him of no vested right. New and additional requiring measuring
burdens, alteration of the certificate, or even establishment appliances;
revocation or annulment thereof is reserved to or 6. Grant of
the State. (Luque vs. Villegas, 30 SCRA 408) maintenance special permits
of extension of to make extra
It is a “property” and has a considerable value facilities; or special trips
and can be the subject of sale or attachment. 6. Revocation in territories
(Cogeo-Cubao Operators and Drivers Assn. vs. , or specified in the
CA, 207 SCRA 343, Raymundo vs. Luneta modification of certificate;
Motor Co.) CPC or 7. Uniform
CPCN; accounting
REQUREMENTS FOR GRANTING CPC OR 7. Suspension system and
CPCN of CPC or furnishing of
1. Applicant must be a citizen of the Philippines CPCN, except annual reports;
or a corporation or entity 60% of the capital when it is 8. Compelling
of which is owned by such citizens; necessary to compliance
2. Applicant must prove public necessity; avoid serious with the laws
3. Applicant must prove that the operation of and and
the public service proposed and the irreparable regulations.
authorization to do business will promote the damage or
public interest on a proper and suitable inconvenience
manner; to the public or
4. Applicant must have sufficient financial private
capability to undertake the proposed interest, in
services and meeting the responsibilities which case, a
incident to its operation. suspension
not more than
30 days may
POWERS POWERS be ordered,
REQUIRING EXERCISABL prior to the
PRIOR E WITHOUT hearing.
NOTICE AND PRIOR (Soriano v.
HEARING NOTICE AND Medina, 164
HEARING SCRA 36)