law on transportation doctrines

8/13/2019 Law on Transportation Doctrines

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LAW ON TRANSPORTATIONI. CONCEPT OF COMMON CARRIER

1. DefinitionArticle 1732 NCC,De Guzman vs. Court of Appeals 168 SCA 612 !1""3#$lanters $ro%ucts &nc vs. CA 226 SCA 76 !1""3#

2. Characteristics 'is(er vs. )an*co Steams(ip Co. 31 $(il 1 !1"1+#S vs. -uina(on 31 $(il 18"oa%star S(ippin* Co., &nc. vs. Court of Appeals 31+ SCA 33" !1"""#'irst $(il. &n%ustrial vs. Court of Appeals 3// SCA 661 !1""8#

3. Distin!ishe" fro# Pri$ate Carrier0ome &nsurance Co. vs. American Steams(ip 23 SCA 2 !1"68#San $alo vs. $antranco 1+3 SCA 1"" !1"87#National Steel Corp. vs. Court of Appeals 283 SCA + !1""7#

%. &o$ern#ent Re!'ation of Co##on Carrier(s )!siness4 aor Center vs. Garcia, 5r. 23" SCA 386 !1""#ata% vs. Garcia, 5r. 21 SCA 33 !1""7#

*. &o$ernin La+Samar 4inin* Co., &nc. vs. Nor%eutsc(er lo% 132 SCA +2" !1"8#astern S(ippin* ines vs. &AC 1+/ SCA 6 !1"8#National Development Co. vs. Court of Appeals 16 SCA +"3 !1"88#

II. CONTRACT,AL EFFECTSA. -I&ILANCE O-ER &OODS

1. Etra/or"inar0 Di'ience Re!ire" of Co##on Carriers Artic'e 1334 NCC5a. 6Reistere" O+ner R!'e7

Gelisan vs. Al%a 1+ SCA 388 !1"87#9ene%icto vs. &AC 187 SCA +7 !1""/#$(iltranco Service nterprises, &nc. vs. CA 273 SCA +62 !1""7#

8. 9a8it S0ste#Santos vs. Siu* 1/ SCA +2/ !1"81#ita nterprises, &nc. vs. CA 18 SCA 37 !1"87#e:a 4ar;etin* vs. &AC18 SCA 37 !1"87#

c. )o!n"ar0 S0ste#4a*oo vs. 9ernar%o 7 SCA "+2 !1"63#

2. Lia8i'it0 of Carriers for Loss4 Destr!ction an" Deterioration of &oo"s: Ece;tions: Pres!#;tion of Ne'ienceArtic'es 13%/13*: Artic'es 13


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). SAFET@ OF PASSEN&ERS1. ,t#ost Di'ience( Re!ire" of Co##on Carriers Artic'e 1**4 NCC5

Nocum vs. a*una aaas us. Co. vs. CA 83 SCA 386 !1"78#4ecenas vs. CA 18/ SCA 83 !1"8"#Ne*ros Navi*ation Co., &nc. vs. CA 281 SCA 717 !1""7#orean Airlines Co. t%. vs. CA 23 SCA 1 !1"""#'ortune @press, &nc. vs. CA 3/+ SCA 1 !1"""#Gatc(alian vs. Delim 2/3 SCA 126 !1""1#Del Castillo vs. 5amalin 112 SCA 62" !1"82#

A. Doctrine of Last C'ear Chance

$(i lippine ai t 9us ines vs. &AC 18" SCA 1+8 !1""/#9ustamante vs. CA 1"3 SCA 6/3 !1""1#

). Acco#o"ation Passenerara vs. 4 NCC5

9aasen vs. Court of Appeals 1/3 SCA 1"7 !1"81# Cervantes vs. Court of Appeals 3/ SCA 27 !1"""# Calalas vs. Court of Appeals 332 SCA 3+6 !2///#

$estao vs. Sumaan* 36 SCA 87/ !2///#

%. Ne'ience or intentiona' assa!'t 80 carrier(s e#;'o0eeGillaco vs. 4anila ailroa% Co. "7 $(il. 88 !1"++#

4aranan vs. $erez 2/ SCA 12 !1"67#

*. Passener(s "!t0 to o8ser$e "i'ience to a$oi" in!r0: contri8!tor0 ne'ience$N vs. Court of Appeals 13" SCA 87 !1"8+#&saac vs. Al Ammen rans 1/1 $(il 1/6 !1"+7#

=. In!r0 to ;assener "!e to acts of co/;assener or straner9ac(elor @press, &nc vs. Court of Appeals 188 SCA 216 !1""/#'ortune @press &nc. vs. CA, supra

III. DAMA&ES Artic'e 1=%4 NCC5A. Act!a'Co#;ensator0 Da#aes Arts. 21


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S,MMAR@ OFCASE DOCTRINES

De &!#an $s. Co!rt of A;;ea's

Article 1732 ma;es no %istinction et=een one =(ose principalusiness activit is t(e carrin* of persons or *oo%s or ot(, an% one =(o %oessuc( carrin* onl as an ancillar activit !in local &%iom as a si%eline#. Article1732 also carefull avoi%s ma;in* an %istinction et=een a person or enterpriseofferin* transportation service on a re*ular or sc(e%ule% asis an% one offerin*suc( service on an occasional, episo%ic or unsc(e%ule% asis. Neit(er %oes Article1732 %istin*uis( et=een a carrier offerin* its services to t(e *eneral pulic, i.e.,t(e *eneral communit or population, an% one =(o offers services or solicitsusiness onl from a narro= se*ment of t(e *eneral population.

(e Court of Appeals referre% to t(e fact t(at private respon%ent (el%no certificate of pulic convenience. A certificate of pulic convenience is not areuisite for t(e incurrin* of liailit. (at liailit arises t(e moment a person orfirm acts as a common carrier, =it(out re*ar% to =(et(er or not suc( carrier (asalso complie% =it( t(e reuirements of t(e applicale re*ulator statute an%implementin* re*ulations an% (as een *rante% a certificate of pulic convenienceor ot(er franc(ise. o e@empt private respon%ent from t(e liailities of a commoncarrier ecause (e (as not secure% t(e necessar certificate of pulicconvenience, =oul% e offensive to soun% pulic policE t(at =oul% e to re=ar%private respon%ent precisel for failin* to compl =it( applicale statutor

reuirements.

P'anters Pro"!cts4 Inc. $s. CA

&t is not %ispute% t(at respon%ent carrier, in t(e or%inar course ofusiness, operates as a common carrier, transportin* *oo%s in%iscriminatel for allpersons. B(en petitioner c(artere% t(e vessel 4F< Sun $lum, t(e s(ip captain,its officers an% compliment =ere un%er t(e emplo of t(e s(ipo=ner an% t(ereforecontinue% to e un%er its %irect supervision an% control. 0ar%l t(en can t(ec(arterer e c(ar*e%, a stran*er to t(e cre= an% to t(e s(ip, =it( t(e %ut of carin*for (is car*o =(en t(e c(arterer %i% not (ave an control of t(e means in %oin* so.(is is evi%ent in t(e present case consi%erin* t(at t(e steerin* of t(e s(ip, t(emannin* of t(e %ec;s, t(e %etermination of t(e course of t(e voa*e an% ot(ertec(nical inci%ents of maritime navi*ation =ere all consi*ne% to t(e officers an%cre= =(o =ere screene%, c(osen an% (ire% t(e s(ipo=ner. &t is t(ereforeimperative t(at a pulic carrier s(all remain as suc(, not=it(stan%in* t(e c(arter oft(e =(ole or portion of a vessel one or more persons, provi%e% t(e c(arter islimite% to t(e s(ip onl, as in t(e case of a timec(arter or voa*ec(arter. &t is onl

=(en t(e c(arter inclu%es ot( t(e vessel an% its cre=, t(at a common carrierecomes private, at least insofar as t(e particular voa*e coverin* t(e c(arterpart is concerne%. &n%uital, a s(ipo=ner in a time or voa*e c(arter retainspossession an% control of t(e s(ip, alt(ou*( (er (ol%s ma, for t(e moment, e t(epropert of t(e c(arterer.

Fisher $s. @anco

&n construin* Act "8 for t(e alle*e% violation, t(e test is =(et(er t(erefusal of )SC to carr t(e e@plosives =it(out ualification or con%itions ma (avet(e effect of su:ectin* an person or localit or t(e traffic is suc( e@plosives to anun%ul unreasonale or unnecessar pre:u%ice or %iscrimination. Commoncarriers in t(is :uris%iction cannot la=full %ecline to accept a particular class of*oo%s unless it appears t(at for some sufficient reason t(e %iscrimination for suc(is reasonale an% necessar. )SC (as not met t(ose con%itions.

(e nature of t(e usiness of a common carrier as a pulicemploment is suc( t(at it is =it(in t(e po=er of t(e State to impose suc( :ustre*ulations in t(e interest of t(e pulic as t(e le*islator ma %eem proper.

,S $s. G!inahon

(ere is no pretense t(at it actuall cost more to (an%le t(e rice for t(eprovince t(an it %i% for t(e merc(ants =it( =(om t(e special contracts =ere ma%e.(ere =as a clear %iscrimination a*ainst t(e province =(ic( is pro(iite% t(ela=. &t is (o=ever not elieve% t(at t(e la= pro(iits common carriers from ma;in*special rates for t(e (an%lin* an% transportin* of merc(an%ise, =(en t(e same arema%e for t(e purpose of increasin* t(eir usiness an% to mana*e t(eir importantinterests upon t(e same principles =(ic( are re*ar%e% as soun% an% a%opte% inot(er tra%es an% pursuits. Asolute eualit is not reuire% in all cases. &t is onlun:ust, un%ue an% unreasonale %iscrimination =(ic( t(e la= fori%s. (e la= ofeualit is in force onl =(ere t(e services performe% in t(e %ifferent cases aresustantiall t(e same an% t(e circumstances an% con%itions are similar.

Loa"star Shi;;in Co.4 Inc. $s. CA

oa%star sumits t(at t(e vessel =as a private carrier ecause it =asnot issue% a C$CE it %i% not (ave a re*ular trip or sc(e%ule nor a fi@e% routeE an%t(ere =as onl Hone s(ipper, one consi*nee for a special car*o.I

(e SC (el% t(at oa%star is a common carrier. &t is not necessar t(at(e carrier e issue% a C$C, an% t(is c(aracter is not altere% t(e fact t(at t(ecarria*e of t(e *oo%s in uestion =as perio%ic, occasional, episo%ic ounsc(e%ule%.

First Phi'i;;ine In"!stria' Cor;oration $s. CA

9ase% on Article 1732 NCC, t(ere is no %out t(at petitioner is acommon carrier. &t is en*a*e% in t(e usiness of transportin* or carrin* *oo%si.e. petroleum pro%ucts, for (ire as a pulic emploment. &t un%erta;es to carr foall persons in%ifferentl, t(at is, to all persons =(o c(oose to emplo its servicesan% transports t(e *oo%s lan% an% for compensation. (e fact t(at petitione(as a limite% clientele %oes not e@clu%e it from t(e %efinition of a common carrier!De Guzman ulin* up(el%#

espon%entJs ar*ument t(at t(e term Hcommon carrierI as use% inSection 133!:# of t(e ocal Government Co%e refers onl to common carrierstransportin* *oo%s an% passen*ers t(rou*( movin* ve(icles or vessels eit(er lan%, sea or =ater is erroneous. (e %efinition of Hcommon carriersI in NCC ma;esno %istinction as to t(e means of transportin* as lon* as it is lan%, =ater or air. &%oes not provi%e t(at t(e transportin* of t(e passen*ers or *oo%s s(oul% e motor ve(icle.

Ho#e Ins!rance Co#;an0 $s. A#erican Stea#shi; Aencies4 Inc.

(e NCC provisions on common carriers s(oul% not appl =(ere t(ecommon carrier is not actin* as suc( ut as a private carrier. n%er American5urispru%ence, a common carrier un%erta;in* to carr a special car*o or c(artere%to a special person onl ecomes a private carrier. As a private carrier, astipulation e@emptin* t(e o=ner from liailit for t(e ne*li*ence of its a*ent is vali%

(e stipulation in t(e c(arter part asolvin* t(e o=ner from liailit foloss %ue to t(e ne*li*ence of its a*ent =oul% e voi% onl if strict pulic polic*overnin* common carrier is applie%. Suc( polic (as no force =(ere t(e pulic alar*e is not involve%, as in t(e case of a s(ip totall c(artere% for t(e use of asin*le part. (e stipulation e@emptin* t(e o=ner from liailit for ne*li*ence of itsa*ent is not a*ainst pulic polic an% is %eeme% vali%. ecover canJt e (a%, forloss or %ama*e to t(e car*o a*ainst s(ipo=ners, unless t(e same is %ue topersonal acts or ne*li*ence of sai% o=ner or its mana*ers, as %istin*uis(e% froma*ents or emploees.

San Pa8'o $s. PANTRANCO

Consi%erin* t(e environmental circumstances of t(e case, t(econveance of passen*ers, truc;s an% car*o from 4atno* to Allen is certainl noa ferr oat service ut a coast=ise or interislan% s(ippin* service. n%er nocircumstance can t(e sea et=een 4atno* an% Allen e consi%ere% a continuationof t(e (i*(=a. B(ile a ferr oat service (as een consi%ere% as a continuationof t(e (i*(=a =(en crossin* rivers or even la;es, =(ic( are small o% of =aters separatin* t(e lan%, (o=ever, =(en as in t(is case t(e t=o terminals, 4atno* an%

Allen are separate% an open sea it can not e consi%ere% as a continuation ot(e (i*(=a. espon%ent $ANANC? s(oul% secure a separate C$C for t(eoperation of an interislan% or coast=ise s(ippin* service in accor%ance =it( t(eprovisions of la=. &ts C$C as a us transportation cannot e merel amen%e% toinclu%e t(is =ater service un%er t(e *uise t(at it is a mere private ferr service.

(e contention of private respon%ent $ANANC? t(at its ferrservice operation is as a private carrier, not as a common carrier for its e@clusiveuse in t(e ferrin* of its passen*er uses an% car*o truc;s is asur%$ANANC? %oes not %en t(at it c(ar*es its passen*ers separatel from t(ec(ar*es for t(e us trips an% issues separate tic;ets =(enever t(e oar% t(e 4* SCRA 11?

$etitioner relies on t(e principle of la= *enerall reco*nize% an%applie% t(e courts in t(e nite% States t(at t(e controllin* element in%eterminin* loss of earnin*s arisin* from %eat( is, as estalis(e% aut(oritiest(e life e@pectanc of t(e %ecease% or of t(e eneficiar, =(ic(ever is s(orter0o=ever, resort to forei*n :urispru%ence =oul% e proper onl if no la= o

:urispru%ence is availale locall to settle a controvers. ven in t(e asence olocal statute an% case la=, forei*n :urispru%ence is onl persuasive.

'or t(e settlement of t(e issue at (an%, t(ere are enou*( applicale

local la=s an% :urispru%ence. n%er Article 176 an% Article 22/6!1# of t(e CiviCo%e, t(e a=ar% of %ama*es for %eat( is compute% on t(e asis of t(e lifee@pectanc of t(e %ecease%, not of (is eneficiar.

Cachero $s. Mani'a @e''o+ Tai Ca8

B(ile un%er t(e la=, emploers are ma%e responsile for t(e %ama*escause% t(eir emploees actin* =it(in t(e scope of t(eir assi*ne% tas;, plaintiffin t(e present case, %oes not maintain (is action a*ainst all t(e persons =(o mi*(e liale for t(e %ama*es cause% ut on an alle*e% reac( of contract of carria*ean% a*ainst t(e %efen%ant emploer alone. 0o=ever, t(e %efen%ant ta@icacompan (as not committe% an criminal offense resultin* in p(sical in:uriea*ainst t(e plaintiff. (e one t(at committe% t(e offense a*ainst plaintiff is t(e%river of %efen%antKs ta@ica ut (e =as not ma%e part %efen%ant to t(e case(erefore, plaintiff is not entitle% to compensation for moral %ama*es as (is case


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%oes not come =it(in t(e e@ception of para*rap( 1 of Article 221" of t(e CivilCo%e.

(e present case %oes not come un%er an of t(e e@ceptionsenumerate% in Article 22/8 of t(e Civil Co%e, speciall of para*rap( 2 t(ereof,ecause %efen%antKs failure to meet its responsiilit =as not t(e cause t(atcompelle% t(e plaintiff to liti*ate or to incur e@penses to protect (is interests. (epresent action =as institute% ecause plaintiff %eman%e% an e@oritant amount formoral %ama*es an% naturall t(e %efen%ant %i% not an% coul% not iel% to suc(%eman%. (is is neit(er a case t(at comes un%er para*rap( 11 of sai% Articleecause t(e o=er Court %i% not %eem it :ust an% euitale to a=ar% an amountfor attorneKs fees, on =(ic( point t(is Court a*rees.

Fores $s. Miran"a

(e e@ception to t(e asic rule of %ama*es no= un%er consi%eration isa mis(ap resultin* in t(e %eat( of a passen*er, in =(ic( case Article 176 ma;est(e common carrier e@pressl su:ect to t(e rule of Art. 22/6, t(at entitles t(espouse, %escen%ants an% ascen%ants of t(e %ecease% passen*er to %eman%moral %ama*es for mental an*uis( reason of t(e %eat( of t(e %ecease%. 9utt(e e@ceptional rule of Art. 176 ma;es it all t(e more evi%ent t(at =(ere t(ein:ure% passen*er %oes not %ie, moral %ama*es are not recoverale unless it isprove% t(at t(e carrier =as *uilt of malice or a% fait(. Be t(in; it is clear t(at t(emere carelessness of t(e carrierKs %river %oes not per se constitute or :ustif aninference of malice or a% fait( on t(e part of t(e carrierE an% in t(e case at art(ere is no ot(er evi%ence of suc( malice to support t(e a=ar% of moral %ama*es t(e Court of Appeals. o a=ar% moral %ama*es for reac( of contract,t(erefore, =it(out proof of a% fait( or malice on t(e part of t(e %efen%ant, asreuire% Art. 222/, =oul% e to violate t(e clear provisions of t(e la=, an%constitute un=arrante% :u%icial le*islation.

Lo;e $s. Pan A#erican

As a pro@imate result of %efen%antKs reac( in a% fait( of its contracts=it( plaintiffs, t(e latter suffere% social (umiliation, =oun%e% feelin*s, seriousan@iet an% mental an*uis(. 'or plaintiffs =ere travellin* =it( first class tic;etsissue% %efen%ant an% et t(e =ere *iven onl t(e tourist class. At stopovers,t(e =ere e@pecte% to e amon* t(e firstclass passen*ers t(ose a=aitin* to=elcome t(em, onl to e foun% amon* t(e tourist passen*ers. &t ma not e(umiliatin* to travel as tourist passen*ersE it is (umiliatin* to e compelle% to travelas suc(, contrar to =(at is ri*(tfull to e e@pecte% from t(e contractualun%erta;in*. Senator opez =as t(en Senate $resi%ent $ro empore. &nternationalcarriers li;e %efen%ant ;no= t(e presti*e of suc( an office. An% (e =as former


13/41

I. CONCEPT OF COMMON CARRIER

DE &,MAN $s. CO,RT OF APPEALS

Facts espon%ent rnesto Cen%aa is a :un; %ealer =(o =as en*a*e% in uin*up use% ottles an% scrap metal in $an*asinan. pon *at(erin* sufficientuantities of suc( scrap material, respon%ent =oul% rin* suc( material to 4anilafor resale. 0e utilize% t=o si@=(eeler truc;s =(ic( (e o=ne% for (aulin* t(ematerial to 4anila. ?n t(e return trip to $an*asinan, respon%ent =oul% loa% (isve(icles =it( car*o =(ic( various merc(ants =ante% %elivere% to %ifferentestalis(ments in $an*asinan. 'or t(at service, respon%ent c(ar*e% frei*(t rates=(ic( =ere commonl lo=er t(an re*ular commercial rates.

$etitioner $e%ro %e Guzman a merc(ant an% aut(orize% %ealer ofGeneral 4il; Compan !$(ilippines#, &nc. in r%aneta, $an*asinan, contracte% =it(respon%ent for t(e (aulin* of 7+/ cartons of iert fille% mil; from its =are(ousein 4a;ati to petitionerKs estalis(ment in r%aneta. 1+/ cartons =ere loa%e% on atruc; %riven respon%ent, =(ile 6// cartons =ere place% on oar% t(e ot(er truc;=(ic( =as %riven 4anuel stra%a, respon%entKs %river an% emploee. ?nl 1+/o@es of iert fille% mil; =ere %elivere% to petitioner. (e ot(er 6// o@es neverreac(e% petitioner, since t(e truc; =(ic( carrie% t(ese o@es =as (i:ac;e%some=(ere alon* t(e 4acArt(ur 0i*(=a in $aniui, arlac, arme% men =(otoo; =it( t(em t(e truc;, its %river, (is (elper an% t(e car*o.

$etitioner commence% action a*ainst private respon%ent %eman%in*pament of $22,1+/.//, t(e claime% value of t(e lost merc(an%ise, plus %ama*esan% attorneKs fees. $etitioner ar*ue% t(at private respon%ent, ein* a commoncarrier, an% (avin* faile% to e@ercise t(e e@traor%inar %ili*ence reuire% of (im t(e la=, s(oul% e (el% liale for t(e value of t(e un%elivere% *oo%s. $rivaterespon%ent %enie% t(at (e =as a common carrier an% ar*ue% t(at (e coul% not e(el% responsile for t(e value of t(e lost *oo%s, suc( loss (avin* een %ue to forcema:eure.

(e C rule% t(at private respon%ent =as a common carrier. CAreverse% t(e %ecision an% (el% t(at respon%ent (a% een en*a*e% in transportin*return loa%s of frei*(t as a casual occupationI, a si%eline to (is scrap ironusiness.

Iss!e 1. B(et(er or not respon%ent is a common carrier.2. B(et(er or not respon%ent is liale.

He'" 1. )es. Article 1732 ma;es no %istinction et=een one =(ose principalusiness activit is t(e carrin* of persons or *oo%s or ot(, an% one =(o %oessuc( carrin* onl as an ancillar activit !in local &%iom as a si%eline#. Article1732 also carefull avoi%s ma;in* an %istinction et=een a person or enterpriseofferin* transportation service on a re*ular or sc(e%ule% asis an% one offerin*suc( service on an occasional, episo%ic or unsc(e%ule% asis. Neit(er %oes Article1732 %istin*uis( et=een a carrier offerin* its services to t(e *eneral pulic, i.e.,t(e *eneral communit or population, an% one =(o offers services or solicitsusiness onl from a narro= se*ment of t(e *eneral population.

(e Court of Appeals referre% to t(e fact t(at private respon%ent (el%no certificate of pulic convenience. A certificate of pulic convenience is not areuisite for t(e incurrin* of liailit. (at liailit arises t(e moment a person orfirm acts as a common carrier, =it(out re*ar% to =(et(er or not suc( carrier (asalso complie% =it( t(e reuirements of t(e applicale re*ulator statute an%implementin* re*ulations an% (as een *rante% a certificate of pulic convenienceor ot(er franc(ise. o e@empt private respon%ent from t(e liailities of a commoncarrier ecause (e (as not secure% t(e necessar certificate of pulicconvenience, =oul% e offensive to soun% pulic policE t(at =oul% e to re=ar%private respon%ent precisel for failin* to compl =it( applicale statutorreuirements.

2. No. Article 173 estalis(es t(e *eneral rule t(at common carriers areresponsile for t(e loss, %estruction or %eterioration of t(e *oo%s =(ic( t(e carr,unless t(e same is %ue to an of t(e follo=in* causes onlL!1# 'loo%, storm, eart(ua;e, li*(tnin* or ot(er natural %isaster or calamitE!2# Act of t(e pulic enem in =ar, =(et(er international or civilE!3# Act or omission of t(e s(ipper or o=ner of t(e *oo%sE!# (e c(aracterof t(e *oo%s or %efects in t(e pac;in* orin t(e containersE an%!+# ?r%er or act of competent pulic aut(orit.

Article 173+ also provi%es as follo=sL&n all cases ot(er t(an t(ose mentione% in numers 1, 2, 3, an% + of t(eprece%in* article, if t(e *oo%s are lost, %estroe% or %eteriorate%, common carriersare presume% to (ave een at fault or to (ave acte% ne*li*entl, unless t(e provet(at t(e oserve% e@traor%inar %ili*ence as reuire% in Article 1733.

(e (i:ac;in* of t(e carrierKs truc; %oes not fall =it(in an of t(e five cate*ories ofe@emptin* causes liste% in Article 173. &t =oul% follo=, t(erefore, t(at t(e(i:ac;in* of t(e carrierKs ve(icle must e %ealt =it( un%er t(e provisions of Article173+, in ot(er =or%s, t(at t(e private respon%ent as common carrier is presume%to (ave een at fault or to (ave acte% ne*li*entl. (is presumption, (o=ever, mae overt(ro=n proof of e@traor%inar %ili*ence on t(e part of private respon%ent.$etitioner ar*ues t(at in t(e circumstances of t(is case, private respon%ent s(oul%(ave (ire% a securit *uar% presumal to ri%e =it( t(e truc; carrin* t(e 6//cartons of iert fille% mil;. Be %o not elieve, (o=ever, t(at in t(e instant case,t(e stan%ar% of e@traor%inar %ili*ence reuire% private respon%ent to retain a

securit *uar% to ri%e =it( t(e truc; an% to en*a*e ri*an%s in a fireli*(t at t(e ris;of (is o=n life an% t(e lives of t(e %river an% (is (elper.

Article 17+ provi%es in relevant partLAn of t(e follo=in* or similar stipulations s(all e consi%ere% unreasonaleun:ust an% contrar to pulic policL

!6# t(at t(e common carrierKs liailit for acts committe% t(ieves, oof roers =(o %o not act =it( *rave or irresistile t(reat, violence or force, is%ispense% =it( or %iminis(e%.

&n t(e instant case, arme% men (el% up t(e secon% truc; o=ne% private respon%ent =(ic( carrie% petitionerKs car*o. Accuse% acte% =it( *rave, i

not irresistile, t(reat, violence or force. &n t(ese circumstances, =e (ol% t(at t(eoccurrence of t(e loss must reasonal e re*ar%e% as uite eon% t(e control ot(e common carrier an% properl re*ar%e% as a fortuitous event. &t is necessar torecall t(at even common carriers are not ma%e asolute insurers a*ainst all ris;sof travel an% of transport of *oo%s, an% are not (el% liale for acts or events =(ic(cannot e foreseen or are inevitale, provi%e% t(at t(e s(all (ave complie% =it(t(e ri*orous stan%ar% of e@traor%inar %ili*ence.

PLANTERS PROD,CTS4 INC. $s. CO,RT OF APPEALS

Facts $$& purc(ase% from 4itsuis(i metric tons of rea fertilizer =(ic( t(e lattes(ippe% aoar% t(e car*o vessel o=ne% from S to a nion. $rior to itsvoa*e, a time c(arterpart on t(e vessel =as entere% into et=een 4itsuis(i ass(ipperFc(arterer an% as s(ipo=ner, in o;o, 5apan. 9efore loa%in* t(efertilizer aoar% t(e vessel, t(e =ere all presumal inspecte% t(e c(artererKsrepresentative an% foun% fit to ta;e a loa% of urea. After t(e rea fertilizer =asloa%e% in ul; steve%ores (ire% an% un%er t(e supervision of t(e s(ipper, t(esteel (atc(es =ere close% =it( (eav iron li%s, covere% =it( t(ree laers o

tarpaulin, t(en tie% =it( steel on%s. (e (atc(es remaine% close% an% ti*(tlseale% t(rou*(out t(e entire voa*e.

A private marine an% car*o surveor, Car*o Superinten%ents Compan&nc. !CSC, =as (ire% $$& to %etermine t(e outturn of t(e car*o s(ippe%. (esurve report sumitte% reveale% a s(orta*e in t(e car*o an% t(at a portion of t(erea fertilizer appro@imatin* =as contaminate% =it( %irt.

$$& sent a claim letter to Soriamont Steams(ip A*encies !SSA#, t(eresi%ent a*ent of t(e carrier, , for t(e cost of t(e s(orta*e in t(e an% t(e%iminution in value of t(at portion contaminate% =it( %irt. SSA e@plaine% t(at t(e%i% not respon% to t(e consi*neeKs claim ecause it =as not a formal claim, an%t(at t(e (a% not(in* to %o =it( t(e %isc(ar*e of t(e s(ipment.

$$& file% an action for %ama*es. (e %efen%ant carrier ar*ue% t(at t(estrict pulic polic *overnin* common carriers %oes not appl to t(em ecauset(e (ave ecome private carriers reason of t(e provisions of t(e c(arterpartC rule% in favor of plaintiff, statin* t(at Hcommon carriers are presume%ne*li*ent, all t(at a s(ipper (as to %o in a suit to recover for loss or %ama*e is tos(o= receipt t(e carrier of t(e *oo%s an% to %eliver it of less t(an =(at ireceive%. After t(at, t(e ur%en of provin* t(at t(e loss or %ama*e =as %ue to anof t(e causes =(ic( e@empt (im from liailit is s(ifte% to t(e carrier, common or

private (e ma e. ven if t(e provisions of t(e c(arterpart are %eeme% vali%an% t(e %efen%ants consi%ere% private carriers, it =as still incument upon t(em toprove t(at t(e s(orta*e or contamination sustaine% t(e car*o is attriutale tot(e fault or ne*li*ence on t(e part of t(e s(ipper or consi*nee in t(e loa%in*,sto=in*, trimmin* an% %isc(ar*e of t(e car*o. (is t(e faile% to %o.I CA reverse%t(e %ecision, relin* on t(e 1"68 case of 0ome &nsurance Co. v. AmericanSteams(ip A*encies, &nc., it rule% t(at t(e car*o vessel 4F< Sun $lum o=ne% private respon%ent =as a private carrier an% not a common carrier reason of t(e time c(artererpart. Accor%in*l, t(e Civil Co%e provisions oncommon carriers =(ic( set fort( a presumption of ne*li*ence %o not fin%application in t(e case at ar.

Iss!e 1# B(et(er a common carrier ecomes a private carrier reason of ac(arterpart.

2# B(et(er t(e s(ipo=ner =as ale to prove t(at (e (a% e@ercise% t(a%e*ree of %ili*ence reuire% of (im un%er t(e la=.

He'" 1.# Not necessaril. &t is not %ispute% t(at respon%ent carrier, in t(e or%inarcourse of usiness, operates as a common carrier, transportin* *oo%s

in%iscriminatel for all persons. B(en petitioner c(artere% t(e vessel 4F< Sun$lum, t(e s(ip captain, its officers an% compliment =ere un%er t(e emplo of t(es(ipo=ner an% t(erefore continue% to e un%er its %irect supervision an% control0ar%l t(en can t(e c(arterer e c(ar*e%, a stran*er to t(e cre= an% to t(e s(ip=it( t(e %ut of carin* for (is car*o =(en t(e c(arterer %i% not (ave an control ot(e means in %oin* so. (is is evi%ent in t(e present case consi%erin* t(at t(esteerin* of t(e s(ip, t(e mannin* of t(e %ec;s, t(e %etermination of t(e course ot(e voa*e an% ot(er tec(nical inci%ents of maritime navi*ation =ere all consi*ne%to t(e officers an% cre= =(o =ere screene%, c(osen an% (ire% t(e s(ipo=ner. &is t(erefore imperative t(at a pulic carrier s(all remain as suc(, not=it(stan%in*t(e c(arter of t(e =(ole or portion of a vessel one or more persons, provi%e%t(e c(arter is limite% to t(e s(ip onl, as in t(e case of a timec(arter or voa*ec(arter. &t is onl =(en t(e c(arter inclu%es ot( t(e vessel an% its cre=, t(at acommon carrier ecomes private, at least insofar as t(e particular voa*e coverin*t(e c(arterpart is concerne%. &n%uital, a s(ipo=ner in a time or voa*e


14/41

c(arter retains possession an% control of t(e s(ip, alt(ou*( (er (ol%s ma, for t(emoment, e t(e propert of t(e c(arterer.

espon%ent carrierKs (eav reliance on t(e case of 0ome &nsuranceCo. v. American Steams(ip A*encies, is misplace% for t(e reason t(at t(e meat oft(e controvers t(erein =as t(e vali%it of a stipulation in t(e c(arterparte@emptin* t(e s(ipo=ners from liailit for loss %ue to t(e ne*li*ence of its a*ent,an% not t(e effects of a special c(arter on common carriers. At an rate, t(e rule int(e nite% States t(at a s(ip c(artere% a sin*le s(ipper to carr special car*o isnot a common carrier, %oes not fin% application in our :uris%iction, for =e (aveoserve% t(at t(e *ro=in* concern for safet in t(e transportation of passen*ersan% For carria*e of *oo%s sea reuires a more e@actin* interpretation ofa%miralt la=s, more particularl, t(e rules *overnin* common carriers.

2.# )es. &n an action for recover of %ama*es a*ainst a common carrier on t(e*oo%s s(ippe%, t(e CJs statement on t(e reuirements of t(e la= =asreiterate%. SC (el% t(at respon%ent carrier (as sufficientl overcome, clear an%convincin* proof, t(e prima facie presumption of ne*li*ence.

&t =as s(o=n %urin* t(e trial t(at after t(e loa%in* of t(e car*o in ul; int(e s(ipJs (ol%s, t(e steel pontoon (atc(es =ere close% an% seale% =it( iron li%s,t(en covere% =it( 3 laers of serviceale tarpaulins =(ic( =ere tie% =it( steelon%s. (e (atc(es remaine% close an% ti*(tl seale% =(ile t(e s(ip =as in transitas t(e =ei*(t of t(e steel covers ma%e it impossile for a person to open =it(outt(e use of t(e s(ipJs oom. Also s(o=n, =as t(at t(e (ull of t(e vessel =as in *oo%con%ition, foreclosin* t(e possiilit of spilla*e of t(e car*o into t(e sea orseepa*e of =ater insi%e t(e (ull of t(e vessel.

SC a*ree% t(at t(e ul; s(ipment of (i*(l solule *oo%s li;e fertilizercarries =it( it t(e ris; of loss or %ama*e. 4oreso, =it( a variale =eat(er con%itionprevalent %urin* its unloa%in*, as =as t(e case at ar. (is is a ris; t(e s(ipper ort(e o=ner of t(e *oo%s (as to face. Clearl, respon%ent carrier (as sufficientlprove% t(e in(erent c(aracter of t(e *oo%s =(ic( ma;es it (i*(l vulnerale to%eteriorationE as =ell as t(e ina%euac of its pac;a*in* =(ic( furt(er contriute%

to t(e loss.

F.C. FISHER $s.@AN&CO STEAMSHIP COMPAN@

Facts (e oar% of )an*co Steams(ip Co. a%opte% a resolution =(ic( =asratifie% t(e stoc;(ol%ers %eclarin* classes of merc(an%ise =(ic( are not to ecarrie% t(e vessels of t(e compan an% pro(iitin* t(e emploees to carr%namite, po=%er or ot(er e@plosives. (e Collector of Customs suspen%e% t(eissuance of clearances for t(e vessels unless t(e carr t(e e@plosives. 'is(er, astoc;(ol%er of )SC, file% a petition for pro(iition.

Iss!e B(et(er or not t(e refusal of t(e oar% of )'C to accept for carria*e%namite, po=%er or ot(er e@plosives from an an% all s(ippers =(o ma offersuc( e@plosives for carria*e can e (el% to e a la=ful act.

He'" No. &n construin* Act "8 for t(e alle*e% violation, t(e test is =(et(er t(erefusal of )SC to carr t(e e@plosives =it(out ualification or con%itions ma (avet(e effect of su:ectin* an person or localit or t(e traffic is suc( e@plosives to an

un%ul unreasonale or unnecessar pre:u%ice or %iscrimination. Commoncarriers in t(is :uris%iction cannot la=full %ecline to accept a particular class of*oo%s unless it appears t(at for some sufficient reason t(e %iscrimination for suc(is reasonale an% necessar. )SC (as not met t(ose con%itions.

(e nature of t(e usiness of a common carrier as a pulicemploment is suc( t(at it is =it(in t(e po=er of t(e State to impose suc( :ustre*ulations in t(e interest of t(e pulic as t(e le*islator ma %eem proper.

,S $s. G,INAHON

Facts Defen%ants =ere c(ar*e% for violation of Act "8, =(en t(e unloa%e% in t(eport of Currimao +,"86 sac;s of rice elon*in* to &locos Norte $rovincialGovernment from 4anila, an% c(ar*e% t(e provincial treasurer 1/ centavos foreac( sac; instea% of 6 centavos =(ic( t(e (ave een re*ularl c(ar*in* for t(eunloa%in* of t(e same ;in% of merc(an%ise an% un%er virtuall t(e samecircumstances an% con%itions. (e =ere convicte%, (ence t(e appeale% to t(e(i*(er court.

Iss!e B(et(er or not t(e %efen%ants as common carriers cause% pre:u%ice to t(e&locos Norte Government.

He'" )es. (ere is no pretense t(at it actuall cost more to (an%le t(e rice for t(eprovince t(an it %i% for t(e merc(ants =it( =(om t(e special contracts =ere ma%e.(ere =as a clear %iscrimination a*ainst t(e province =(ic( is pro(iite% t(ela=. &t is (o=ever not elieve% t(at t(e la= pro(iits common carriers from ma;in*special rates for t(e (an%lin* an% transportin* of merc(an%ise, =(en t(e same arema%e for t(e purpose of increasin* t(eir usiness an% to mana*e t(eir importantinterests upon t(e same principles =(ic( are re*ar%e% as soun% an% a%opte% inot(er tra%es an% pursuits. Asolute eualit is not reuire% in all cases. &t is onlun:ust, un%ue an% unreasonale %iscrimination =(ic( t(e la= fori%s. (e la= ofeualit is in force onl =(ere t(e services performe% in t(e %ifferent cases aresustantiall t(e same an% t(e circumstances an% con%itions are similar.

LOADSTAR SHIPPIN& CO.4 INC. $s.CO,RT OF APPEALS

Facts ?n Novemer 1", 1"8, ?ADSA receive% on oar% its 4F< C(ero;ee*oo%s!certain tpes of =oo%# for s(ipment. (e *oo%s =ere insure% =it( 4anila&nsurance Co.!4&C# a*ainst various ris;s inclu%in* H?A ?SS 9) ?A?SS ?' 0 Assurance, &nc.!$GA for $ 4illion.

?n Novemer 2/, 1"8, on its =a to 4anila from Nasipit, A*usan %eNorte, t(e vessel san; off imasa=a &slan%. As a result of t(e total loss of itss(ipment, t(e consi*nee ma%e a claim =it( ?ADSA =(ic(, (o=ever i*nore%t(e same. As t(e insurer, 4&C pai% t(e insure% in full settlement of its claim.

?n 'eruar , 1"8+, 4&C file% a complaint a*ainst oa%star an%$GA&, alle*in* t(at t(e sin;in* of t(e vessel =as %ue to t(e fault an% ne*li*ence o

oa%star an% its emploees. oa%star claime% force ma:eur. $GA& averre% t(a4&C (as no cause of action a*ainst it, oa%star ein* t(e part insure%. $GA& =aslater %roppe% as a part %efen%ant after it pai% t(e insurance procee%s tooa%star.

(e trial court ren%ere% :u%*ment for 4&C, promptin* oa%star to *o tot(e CA =(ic( affirme% t(e %ecision.

Iss!e B(et(er or not oa%star is a private carrier.

He'" No. oa%star sumits t(at t(e vessel =as a private carrier ecause it =asnot issue% a C$CE it %i% not (ave a re*ular trip or sc(e%ule nor a fi@e% routeE an%t(ere =as onl Hone s(ipper, one consi*nee for a special car*o.I

(e SC (el% t(at oa%star is a common carrier. &t is not necessar t(at(e carrier e issue% a C$C, an% t(is c(aracter is not altere% t(e fact t(at t(ecarria*e of t(e *oo%s in uestion =as perio%ic, occasional, episo%ic ounsc(e%ule%.

&n support of its position oa%star relie% on t(e 1"68 case of 0ome&nsurance Co. v. American Steams(ip A*encies, =(ere t(e Court (el% t(at acommon carrier transportin* special car*o or c(arterin* t(e vessel to a specia

person ecomes a private carrier t(at is not su:ect to t(e provisions of t(e CivCo%e.(is case (o=ever is not applicale in t(e case at ar for t(e simple

reason t(at t(e actual settin*s are %ifferent. (e recor%s %o not %isclose t(at t(e4F< C(ero;ee, on t(e %ate in uestion, un%ertoo; to carr a special car*o or =asc(artere% to a special person onl. (ere =as no c(arter part. (e ills of la%in*faile% to s(o= an special arran*ement, ut onl a *eneral provision to t(e effect(at t(e 4F< C(ero;ee =as a *eneral car*o carrier. 'urt(er, t(e are fact t(at t(evessel =as carrin* a particular tpe of car*o for one s(ipper, =(ic( appears to epurel coinci%ental, is not reason enou*( to convert t(e vessel from a commoncarrier to a private carrier, especiall =(ere, as in t(is case, it =as s(o=n t(at t(evessel =as also carrin* passen*ers.

n%er t(e facts an% circumstances otainin* in t(is case, oa%star fitt(e %efinition of a common carrier un%er Article 1732 of t(e NCC. (e %octrineenunciate% in t(e case of De Guzman v. CA =as also mentione%. CA %ecision is(ere affirme%.

FIRST PHILIPPINE IND,STRIAL CORPORATION $s. CO,RT OF APPEALS

Facts $etitioner is a *rantee of a pipeline concession un%er A 387 to contract

install an% operate oil pipelines. (e first pipeline concession =as *rante% in 1"67an% =as rene=e% t(e 9 in 1""2. &n 1""+, petitioner applie% for a 4aorJspermit in 9atan*as Cit. espon%ent treasurer reuire% petitioner to pa a local ta@ase% on its *ross receipts for t(e fiscal ear in 1""3 pursuant to t(e ocaGovernment Co%e.

o avoi% (amperin* its operations, petitioner pai% t(e amount of ta@ fot(e first uarter un%er protest. $etitioner ar*ue% t(at as a pipeline operator =it( a*overnment concession en*a*e% in transportin* petroleum pro%ucts via pipeline iis e@empte% from pament of ta@ ase% on *ross receipts. espon%ent refuse% toma;e reimursement on t(e *roun% t(at petitioner is not a common carrieen*a*e% in transportation usiness lan%, =ater or air.

Iss!e B(et(er or not petitioner is liale to pa a local ta@ ase% on *ross receiptssince it is not a common carrier.

He'" No. 9ase% on Article 1732 NCC, t(ere is no %out t(at petitioner is acommon carrier. &t is en*a*e% in t(e usiness of transportin* or carrin* *oo%si.e. petroleum pro%ucts, for (ire as a pulic emploment. &t un%erta;es to carr foall persons in%ifferentl, t(at is, to all persons =(o c(oose to emplo its services

an% transports t(e *oo%s lan% an% for compensation. (e fact t(at petitione(as a limite% clientele %oes not e@clu%e it from t(e %efinition of a common carrier!De Guzman ulin* up(el%#

espon%entJs ar*ument t(at t(e term Hcommon carrierI as use% inSection 133!:# of t(e ocal Government Co%e refers onl to common carrierstransportin* *oo%s an% passen*ers t(rou*( movin* ve(icles or vessels eit(er lan%, sea or =ater is erroneous. (e %efinition of Hcommon carriersI in NCC ma;esno %istinction as to t(e means of transportin* as lon* as it is lan%, =ater or air. &%oes not provi%e t(at t(e transportin* of t(e passen*ers or *oo%s s(oul% e motor ve(icle.

&t is clear t(at t(e le*islative intent in e@clu%in* from t(e ta@in* po=er ot(e local *overnment unit t(e imposition of usiness ta@ a*ainst common carriersis to prevent a %uplication of t(e socalle% common carrierKs ta@. $etitioner isalrea% pain* 3 common carrierKs ta@ on its *ross salesFearnin*s un%er t(eNational &nternal evenue Co%e. o ta@ petitioner a*ain on its *ross receipts in itstransportation of petroleum usiness =oul% %efeat t(e purpose of t(e ocaGovernment Co%e.


15/41

HOME INS,RANCE COMPAN@ $s. AMERICAN STEAMSHIP A&ENCIES4 INC.

FactsA $eruvian firm s(ippe% fis(meal t(rou*( t(e SS C(o=orou*( consi*ne%to t(e San 4i*uel 9re=er an% insure% t(e 0ome &nsurance Co. (e car*oarrive% in 4anila an% =as %isc(ar*e% into t(e li*(ters of uzon Steve%orin* Co.B(en t(e car*o =as %elivere% to S49 t(ere =ere s(orta*es.

0ome &nsurance Co. pai% S49 $1,/// after its %eman%. 0ome&nsurance file% for reimursement from uzon Steve%orin* an% AmericanSteams(ip A*encies, o=ner an% operator of t(e vessel. (e lo=er court asolve%uzon after fin%in* t(at it oserve% t(e reuire% %ili*ence ut or%ere% ASA to

reimurse 0ome &nsurance, %eclarin* t(at Art. +87 of t(e Co%e of Commercema;es t(e s(ip a*ent civill liale for %ama*es in favor of t(ir% persons %ue to t(econ%uct of carrierJs captain an% t(at t(e stipulation in t(e c(arter part e@emptin*o=ner from liailit is a*ainst pulic polic un%er Art. 17, NCC. ASA appeale%,alle*in* t(at un%er t(e provisions of t(e C(arter $art referre% to in t(e ills ofla%in*, t(e c(arterer, not t(e s(ipo=ner is responsile for an loss or %ama*e oft(e car*o.

Iss!eAre t(e provisions of t(e NCC applicaleO

He'" No. (e NCC provisions on common carriers s(oul% not appl =(ere t(ecommon carrier is not actin* as suc( ut as a private carrier. n%er American5urispru%ence, a common carrier un%erta;in* to carr a special car*o or c(artere%to a special person onl ecomes a private carrier. As a private carrier, astipulation e@emptin* t(e o=ner from liailit for t(e ne*li*ence of its a*ent is vali%.

(e stipulation in t(e c(arter part asolvin* t(e o=ner from liailit forloss %ue to t(e ne*li*ence of its a*ent =oul% e voi% onl if strict pulic polic*overnin* common carrier is applie%. Suc( polic (as no force =(ere t(e pulic atlar*e is not involve%, as in t(e case of a s(ip totall c(artere% for t(e use of a

sin*le part. (e stipulation e@emptin* t(e o=ner from liailit for ne*li*ence of itsa*ent is not a*ainst pulic polic an% is %eeme% vali%. ecover canJt e (a%, forloss or %ama*e to t(e car*o a*ainst s(ipo=ners, unless t(e same is %ue topersonal acts or ne*li*ence of sai% o=ner or its mana*ers, as %istin*uis(e% froma*ents or emploees.

SAN PA)LO $s. PANTRANCO

Facts $ANANC? offers $9 service for passen*ers an% frei*(t. &t operatespassen*er uses from 4etro 4anila to 9icol e*ion an% astern Samar. ?n4arc( 27,1"8/ it reueste% 4A&NA for aut(orit to leaseFpurc(ase a vessel forits pro:ect to operate a ferroat service from 4atno*,Sorso*on an% Allen,Samart(at =ill provi%e service to compan uses an% frei*(t truc;s t(at (ave to crossSan 9ernar%o Strait.(is =as not *iven %ue course ecause t(e 4atno*Allen runis a%euatel service% Car%inal S(ippin* Corp. an% pitacio San $alo an%mar;et con%itions in t(e propose% route cannot support t(e entr of a%%itionaltonna*e. $ANANC? nevert(eless acuire% t(e vessel. &t =rote t(e C(airman oft(e 9oar% of ransportation !9?#, t(at it proposes to operate a ferr service to

carr its passen*er uses an% frei*(t truc;s et=een Allen an% 4atno* inconnection =it( its trips to acloan Cit. $ANANC? claims t(at it can operatea ferr service in connection =it( its franc(ise for us operation in t(e (i*(=afrom $asa Cit to acloan Cit for t(e purpose of continuin* t(e (i*(=a, =(ic(is interrupte% a small o% of =ater, t(e sai% propose% ferr operation is merela necessar an% inci%ental service to its main service an% oli*ation oftransportin* its passen*ers from $asa Cit to acloan Cit. Suc( ein* t(e caset(ere is no nee% to otain a separate certificate for pulic convenience to operate aferr service. (e 9? *rante% aut(orit to $ANANC? to operate a private ferroat service, to =(ic( t(e petitioners oppose%.

Iss!e BFN a lan% transportation compan can e aut(orize% to operate a ferrservice or coast=ise or interislan% s(ippin* service alon* its aut(orize% route as aninci%ent to its franc(ise =it(out t(e nee% of filin* a separate application for t(esame.

He'" No. Consi%erin* t(e environmental circumstances of t(e case, t(econveance of passen*ers, truc;s an% car*o from 4atno* to Allen is certainl nota ferr oat service ut a coast=ise or interislan% s(ippin* service. n%er no

circumstance can t(e sea et=een 4atno* an% Allen e consi%ere% a continuationof t(e (i*(=a. B(ile a ferr oat service (as een consi%ere% as a continuationof t(e (i*(=a =(en crossin* rivers or even la;es, =(ic( are small o% of =aters separatin* t(e lan%, (o=ever, =(en as in t(is case t(e t=o terminals, 4atno* an%

Allen are separate% an open sea it can not e consi%ere% as a continuation oft(e (i*(=a. espon%ent $ANANC? s(oul% secure a separate C$C for t(eoperation of an interislan% or coast=ise s(ippin* service in accor%ance =it( t(eprovisions of la=. &ts C$C as a us transportation cannot e merel amen%e% toinclu%e t(is =ater service un%er t(e *uise t(at it is a mere private ferr service.

(e contention of private respon%ent $ANANC? t(at its ferr service operationis as a private carrier, not as a common carrier for its e@clusive use in t(e ferrin*of its passen*er uses an% car*o truc;s is asur%. $ANANC? %oes not %ent(at it c(ar*es its passen*ers separatel from t(e c(ar*es for t(e us trips an%issues separate tic;ets =(enever t(e oar% t(e 4< 9lac; Doule t(at crosses4atno* to Allen, $ANANC? cannot preten% t(at in issuin* tic;ets to itspassen*ers it %i% so as a private carrier an% not as a common carrier. (e Court

%oes not see an reason =( inspite of its amen%e% franc(ise to operate a privateferr oat service it cannot accept =al;in passen*ers :ust for t(e purpose ocrossin* t(e sea et=een 4atno* an% Allen. &n%ee% evi%ence to t(is effect (aseen sumitte%.

NATIONAL STEEL CORPORATION $s. CO,RT OF APPEALS

Facts ?n 5ul 17, 1"7, plaintiff NSC as c(arterer an% %efen%ant


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ur%en of provin* t(at t(ere is no nee% for a propose% service s(all e =it( t(eoppositor!s#.I

!c# D?C 4emoran%um %ate% ?ctoer 8, 1""2, lain* %o=n rules an% proce%uresto implement Department ?r%er No. "2+87E

!%# '9 4emoran%um Circular No. "2//", provi%in* implementin* *ui%elineson t(e D?C Department ?r%er No. "2+87E an%

!e# '9 ?r%er %ate% 4arc( 2, 1"" in Case No. "3112.

Sometime in 4arc(, 1"", private respon%ent $9?A$, availin* itself of t(e

%ere*ulation polic of t(e D?C allo=in* provincial us operators to collect plus2/ an% minus 2+ of t(e prescrie% fare =it(out first (avin* file% a petition fort(e purpose an% =it(out t(e enefit of a pulic (earin*, announce% a fare increaseof 2/ percent of t(e e@istin* fares.

$etitioner 4 file% a petition efore t(e '9 opposin* t(e up=ar% a%:ustmentof us fares. '9 %ismisse% t(e petition (ence t(e present one.

Iss!eB(et(er or not t(e assaile% or%ersFcirculars are vali%.

He'"B(ile t(e aut(orit of t(e D?C an% t(e '9 to issue a%ministrativeor%ers to re*ulate t(e transport sector is reco*nize%, t(e Court foun% t(at t(ecommitte% *rave ause of %iscretion in issuin* D?C Department ?r%er No. "2+87 an% '9 4emoran%um Circular No. "2//" promul*atin* t(e implementin**ui%elines on D?C Department ?r%er No. "2+87, t(e sai% a%ministrativeissuances ein* amen%ator an% violative of t(e $ulic Service Act an% t(e ulesof Court.

'are an*e Sc(emeL (e 2/ fare increase impose% $9?A$=it(out t(e enefit of a petition an% a pulic (earin* is null an% voi% an% of no force

an% effect. $resume% $ulic Nee%L A C$C is an aut(orization *rante% t(e'9 for t(e operation of lan% transportation services for pulic use as reuire% la=. $ursuant to Section 16!a# of t(e $ulic Service Act, as amen%e%, t(efollo=in* reuirements must e met efore a C$C ma e *rante%, to =itL !i# t(eapplicant must e a citizen of t(e $(ilippines, or a corporation or copartners(ip,association or :ointstoc; compan constitute% an% or*anize% un%er t(e la=s of t(e$(ilippines, at least 6/ of its stoc; or pai%up capital must elon* entirel tocitizens of t(e $(ilippinesE !ii# t(e applicant must e financiall capale ofun%erta;in* t(e propose% service an% meetin* t(e responsiilities inci%ent to itsoperationE an% !iii# t(e applicant must prove t(at t(e operation of t(e pulic servicepropose% an% t(e aut(orization to %o usiness =ill promote t(e pulic interest in aproper an% suitale manner. &t is un%erstoo% t(at t(ere must e proper notice an%(earin* efore t(e $SC can e@ercise its po=er to issue a C$C.

B(ile a%optin* t(e fore*oin* reuisites for t(e issuance of a C$C,'9 4emoran%um Circular No. "2//", $art & C?., &NC.#, =(ic( s(ipment is covere% 9ill of a%in*No. 18 %ul issue% to consi*nee SA4A 4&N&NG C?4$AN), &NC.

pon arrival of t(e aforesai% vessel at t(e port of 4anila, t(eimportation =as unloa%e% an% %elivere% in *oo% or%er an% con%ition to t(e on%e%=are(ouse of A4C). (e *oo%s =ere (o=ever never %elivere% to, nor receive%, t(e consi*nee at t(e port of %estinationRDavao.

9ill of la%in*, No. 18 sets fort( in t(e pa*e 2 t(ereof t(at t(e *oo%s

=ere receive% N?DSC0 ?)D at t(e Hport of loa%in* at 9remenGerman, =(ile t(e frei*(t (a% een prepai% up to t(e port of %estination or t(eHport of %isc(ar*e of *oo%sIRDavao. (e carrier un%ertoo; to transport t(e *oo%sin its vessel, 4FS S0BA9NS&N, onl up to t(e Hport of %isc(ar*e from s(ipIR4anila. (ereafter, t(e *oo%s =ere to e trans(ippe% t(e carrier to t(e port o%estination or Hport of %isc(ar*e of *oo%sI.

Section 1, para*rap( 3 of 9ill of a%in* No. 18, statesLH(e carrier s(all not e liale in an capacit =(atsoever for an

%ela, loss or %ama*e occurrin* efore t(e *oo%s enter s(ipJs tac;le to e loa%e%or after t(e *oo%s leave s(ipJs tac;le to e %isc(ar*e%, trans(ippe% or for=ar%e%@@@I

(e trial court ren%ere% :u%*ment in favor of plaintiff, (ence t(e appeal

Iss!e B(et(er or not t(e various clauses an% stipulations in t(e 9ill of la%in* isvali%.

He'" )es. (e vali%it of stipulations in ills of la%in* e@emptin* t(e carrier fromliailit for loss or %ama*e to t(e *oo%s =(en t(e same are not in its actuacusto% (as een up(el% in $0?N& ASSANC C?., D. vs. N&D

SAS &NS, 22 SCA 67 !1"68#.(e stipulations in t(e ill of la%in* in t(e $0?N& case =(ic( aresustantiall t(e same as t(e su:ect stipulations provi%esL

H(e carrier s(all not e liale in an capacit =(atsoever for an loss or %ama*eto t(e *oo%s =(ile t(e *oo%s are not in its actual custo%.I !$ar. 2, last supar.#

H(e carrier or master, in ma;in* arran*ements =it( an person for or inconnection =it( all transs(ippin* or for=ar%in* of t(e *oo%s or t(e use of anmeans of transportation or for=ar%in* of *oo%s not use% or operate% t(e carriers(all e consi%ere% solel t(e a*ent of t(e s(ipper an% consi*nee an% =it(out anot(er responsiilit =(atsoever or for t(e cost t(ereof.I !$ar. 16#

'in%in* t(e aove stipulations not contrar to la=, morals, *oo% customs, pulior%er or pulic polic t(eir vali%it =as sustaine%.


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A careful perusal of t(e provisions of t(e Ne= Civil Co%e on commoncarriers =as loo;e% into t(e Court particularl, Article 1736 an% 1738.

(ere is no %out t(at Art. 1738 fin%s no applicailit to t(e instantcase. (e sai% article contemplates a situation =(ere t(e *oo%s (a% alrea%reac(e% t(eir place of %estination an% are store% in t(e =are(ouse of t(e carrier.(e su:ect *oo%s =ere still a=aitin* transs(ipment to t(eir port of %estination, an%=ere store% in t(e =are(ouse of a t(ir% part =(en last seen an%For (ear% of.

Article 1736 is applicale to t(e instant suit. n%er sai% article, t(ecarrier ma e relieve% of t(e responsiilit for loss or %ama*e to t(e *oo%s uponactual or constructive %eliver of t(e same t(e carrier to t(e consi*nee, or to t(eperson =(o (as a ri*(t to receive t(em. &n sales, actual %eliver (as een %efine%as t(e ce%in* of corporeal possession t(e seller, an% t(e actual appre(ension

of corporeal possession t(e uer or some person aut(orize% (im toreceive t(e *oo%s as (is representative for t(e purpose of custo% or %isposal. 9t(e same to;en, t(ere is actual %eliver in contracts for t(e transport of *oo%s=(en possession (as een turne% over to t(e consi*nee or to (is %ul aut(orize%a*ent an% a reasonale time is *iven (im to remove t(e *oo%s. (e court a uofoun% t(at t(ere =as actual %eliver to t(e consi*nee t(rou*( its %ul aut(orize%a*ent, t(e carrier.

=o un%erta;in*s appeare% emo%ie% an%For provi%e% for in t(e 9ill ofa%in* in uestion. (e first is '? 0 ANS$? ?' G??DS from 9remen,German to 4anila. (e secon%, 0 ANSS0&$4N ?' 0 SA4 G??DSfrom 4anila to Davao, =it( appellant actin* as a*ent of t(e consi*nee. At t(e(iatus et=een t(ese t=o un%erta;in*s of appellant =(ic( is t(e moment =(en t(esu:ect *oo%s are %isc(ar*e% in 4anila, its personalit c(an*es from t(at of carrierto t(at of a*ent of t(e consi*nee. (us, t(e c(aracter of appellantKs possessionalso c(an*es, from possession in its o=n name as carrier, into possession in t(ename of consi*nee as t(e latterKs a*ent. Suc( ein* t(e case, t(ere =as, in effect,actual %eliver of t(e *oo%s from appellant as carrier to t(e same appellant asa*ent of t(e consi*nee. pon suc( %eliver, t(e appellant, as erst=(ile carrier,ceases to e responsile for an loss or %ama*e t(at ma efall t(e *oo%s from

t(at point on=ar%s. (is is t(e full import of Article 1736, as applie% to t(e case.(e actions of appellant carrier an% of its representative in t(e$(ilippines ein* in full fait( =it( t(e la=ful stipulations of 9ill of a%in* No. 18 an%in conformit =it( t(e provisions of t(e Ne= Civil Co%e on common carriers,a*enc an% contracts, t(e incur no liailit for t(e loss of t(e *oo%s in uestion.

Appeale% %ecision is


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(e a*reement et=een NDC an% 4C$ s(o=s t(at 4C$ is appointe%as a*ent, a term roa% enou*( to inclu%e t(e concept of s(ip a*ent in maritimela=. &n fact 4C$ =as even conferre% all t(e po=ers of t(e o=ner of t(e vessel,inclu%in* t(e po=er to contract in t(e name of t(e NDC. 9ot( o=ner an% a*ents(oul% e %eclare% :ointl an% severall liale since t(e oli*ation =(ic( is t(esu:ect of t(e action (a% its ori*in in a fortuitous act an% %i% not arise fromcontract.

CA %ecision is affirme%.

II. CONTRACT,AL EFFECTS

A. -ii'ance o$er &oo"s

&ELISAN $s. ALDA@

Facts 9ienveni%o Gelisan is t(e o=ner of a frei*(t truc;. Defen%ant 9ienvei%oGelisan an% oerto oerto entere% into a contact un%er=(ic( spiritu (ire% t(esame frei*(t truc; of Gelisan for t(e purpose of (aulin* rice, su*ar, flour an%fertilizer. &t also a*ree% t(at spiritu s(all ear an% pa all losses an% %ama*esatten%in* t(e carria*e of t(e *oo%s to e (aule% (im.

9enito Al%a, a truc;in* operator (a% ;no=n oerto spiritu. Al%a(a% a contact to (aul t(e fertilizer of t(e Atlas 'ertilizer Corporation from $ier ,Nort( 0aror, to its Bare(ouse in 4an%aluon*.

Al%a met spiritu at t(e *ate of $ier an% t(e latter offere% t(e use of(is truc; =it( t(e %river an% (elper. (e offer =as accepte% Al%a an% (einstructe% (is c(ec;er to let oerto spiritu (aul t(e fertilizer. spiritu ma%e t=o(auls of zooa*s of fertilizer per trip. (e fertilizer =as %elivere% to t(e %river an%(elper of spiritu =it( t(e necessar =aill receipts. spiritu, (o=ever, %i% not%eliver t(e fertilizer to t(e Atlas 'ertilizer o%e*a at 4an%aluon*.

(us, 9enito Al%a =as compelle% to pa t(e value of t(e // a*s offertilizers to Atlas 'ertilizer Corporation an% file% a compliant a*ainst oertospiritu an% 9ienveni%o Gelisan =it( t(e C'& of 4anila.

(e C'& of 4anila rule% t(at oerto spiritu =as t(e onl one liale.?n appeal, CA rule% t(at 9ienveni%o Gelisan is li;e=ise liale for ein* t(ere*istere% o=ner of t(e truc;.

Iss!e B(et(er or not Gelisan s(oul% e (el% soli%aril liale =it( spiritu, ein*t(e re*istere% o=ner of t(e truc;.

He'" )es, Gelisan s(oul% e (el% soli%aril liale =it( spiritu, ein* t(ere*istere% o=ner of t(e truc;.

(e Court (as invarial (el% in several %ecisions t(at t(e re*istere%o=ner of a pulic service ve(icle is responsile for %ama*es t(at ma arise fromconseuences inci%ent to its operation or t(at ma e cause% to an of t(epassen*ers t(erein. (e claim of t(e petitioner t(at (e is not liale in vie= of t(elease contract e@ecute% an% et=een (im an% oerto spiritu =(ic( e@empts(im from liailit to t(ir% persons, cannot e sustaine% ecause it appears t(at t(elease contract, a%verte% to, (a% not een approve% t(e $ulic serviceCommission. &t is settle% in our :urispru%ence t(at if t(e propert covere% afranc(ise is transferre% or lease% to anot(er =it(out otainin* t(e reuisiteapproval, t(e transfer is not in%in* upon t(e pulic or t(ir% persons. 0o=ever,Gelisan is not =it(out recourse ecause (e (as a ri*(t to e in%emnifie% oerto spiritu for t(e amount t(at (e ma e reuire% to pa as %ama*es for t(ein:ur cause% to 9enito Al%a, since t(e lease contract in uestion, alt(ou*( noteffective a*ainst t(e pulic for not (avin* een approve% t(e $ulic ServiceCommission, is vali% an% in%in* et=een t(e contractin* parties.

(e Court rule% t(at t(e petitioner is DN&D. Bit( costs a*ainst t(epetitioner.

)ENEDICTO $s. IAC

Facts $rivate respon%ent Green(ills Boo% &n%ustries Compan, &nc., a lumermanufacturin* firm, operates a sa=mill in -uirino.

Sometime in 4a 1"8/, private respon%ent oun% itself to sell an%%eliver to 9lue Star 4a(o*an, &nc. !H9lue StarI#, a compan in 9ulacan 1//,///oar% feet of sa=n lumer =it( t(e un%erstan%in* t(at an initial %eliver =oul% ema%e on 4a 1+, 1"8/. o effect its first %eliver, private respon%entJs resi%entmana*er Domina%or Cruz, contracte%


19/41

protection of Santos,


20/41

Iss!e B(et(er or not petitioner is *uilt of reac( of contract of transportation an%in imposin* a liailit a*ainst (im commencin* from t(e time t(e scrap iron =asplace% in (is custo% an% control (ave no asis in fact an% in la=.

He'" )es, petitioner is *uilt of reac( of t(e contract of transportation. 9 t(esai% act of %eliver, t(e scraps =ere uncon%itionall place% in t(e possession an%control of t(e common carrier, an% upon t(eir receipt t(e carrier fortransportation, t(e contract of carria*e =as %eeme% perfecte%. Conseuentl, t(epetitioner carrierJs e@traor%inar responsiilit for t(e loss, %estruction or%eterioration of t(e *oo%s commence%. $ursuant to Article 1736, suc(e@traor%inar responsiilit =oul% cease onl upon t(e %eliver, actual orconstructive, t(e carrier to t(e consi*nee, or to t(e person =(o (as a ri*(t to

receive t(em. (e fact t(at part of t(e s(ipment (a% not een (ea%e% t(e li*(ter%i% not impair t(e sai% contract of transportation as t(e *oo%s remaine% in t(ecusto% an% control of t(e carrier, aleit still unloa%e%.

(e Court rule% t(at t(e petition is DN&D.

EASTERN SHIPPIN& LINES4 INC. $s. CA

Facts ?n Septemer , 1"78, t(irteen coils of uncoate% 7 =ire stress relieve% forpre stresse% concrete =ere s(ippe% on oar% t(e vessel H5upri


21/41

or t(at it =as properl mounte% on t(e ve(icle. Neit(er ma t(e fact t(at t(e tireou*(t an% use% in t(e ve(icle is of a ran% name note% for ualit, resultin* in t(econclusion t(at it coul% not e@plo%e =it(in five %as use. 9e t(at as it ma, it issettle% t(at an acci%ent cause% eit(er %efects in t(e automoile or t(rou*( t(ene*li*ence of its %river is not a case fortuit t(at =oul% e@empt t(e carrier fromliailit for %ama*es. 4oreover, a common carrier ma not e asolve% fromliailit in case of force ma:eure or fortuitous event alone. (e common carriermust still prove t(at it =as not ne*li*ent in causin* t(e %eat( or in:ur resultin*from an acci%ent. (us, (avin* faile% to %isc(ar*e its %ut to overt(ro= t(epresumption of ne*li*ence =it( clear an% convincin* evi%ence, petitioners are(ere (el% liale for %ama*es.

(e Court rule% t(at t(e Decision of t(e Court of Appeals is (ere

affirme%.

COMPANIA MARITIMA $s. INS,RANCE CO. OF NORTH AMERICA

Facts 4acleo% an% Co. contracte%, first telep(one an% later confirme% a formal =ritten oo;in* issue% 4acleo% an% Co. t(e services of t(e petitionerCampania 4aritime for t(e s(ipment of ales of (emp from Davao to 4anila. =oli*(ters of t(e petitioner loa%e% sai% car*o from 4acleo%Js =(arf at Davao a=aitin*t(e arrival of anot(er vessel of t(e petitioner for loa%in*. ?ne of t(e li*(ters sun;=(ic( 4acleo% suffere% %ama*e $+, /18.++. $etitioner %enie% t(e liailit on t(e*roun%s t(at t(ere =as no ill of la%in* issue% t(ere resultin* to t(e none@istence of carria*e contract, t(at t(e sin;in* =as %ue to a fortuitous event an%t(at t(e respon%ent (as no personalit.

Iss!e B(et(er or not t(ere is a perfecte% contract of carria*e.

He'" (ere =as a complete contract of carria*e t(e consummation of =(ic(

(as alrea% e*un =(en t(e s(ipper %elivere% t(e car*o to t(e carrier an% t(elatter too; possession of t(e same placin* it on a li*(ter manne% itsaut(orize% emploees, un%er =(ic( 4acleo% ecame entitle% to t(e privile*esecure% to (im la=. (e responsiilit of t(e carrier commence% on t(e actual%eliver to, or receipt , t(e carrier or its aut(orize% a*ent, of t(e *oo%s. (ear*es or li*(ters =ere merel emploe% as t(e first step of t(e voa*e.

As to t(e issuance of a ill of la%in*, alt(ou*( Art. 3+/ of t(e Co%e ofCommerce provi%es t(at t(e s(ipper as =ell as t(e carrier ma mutuall %eman%t(at a ill of la%in* e issue%, it is not in%ispensale. As re*ar%s to t(e form of t(econtract of carria*e, it can e sai% t(at provi%e% t(ere is a meetin* of t(e min%san% from suc( meetin* arise ri*(ts an% oli*ations, t(ere s(oul% e no limitationsas to form. A ill of la%in* is not essential to t(e contract, alt(ou*( it ma ecomeoli*ator reason of t(e re*ulations or as a con%ition impose% in t(e contract t(e a*reement of t(e parties t(emselves. (e Co%e of Commerce %oes not%eman% as a necessar reuisite in t(e contract of transportation, t(e %eliver of aill of la%in* to t(e s(ipper, ut *ives t(e ri*(t to ot( t(e s(ipper an% carrier tomutuall %eman% of eac( ot(er t(e %eliver of t(e sai% ill.

5u%*ment a*ainst petitioner is affirme%.

L, DO $s. )INAMIRA

Facts Delta Compan of Ne= )or; s(ippe% si@ cases of films an%p(oto*rap(ic supplies to 9inamira. (e s(ip arrive% in Ceu an% %isc(ar*e% (ercar*o, placin* it in t(e custo% of t(e arrastre operator appointe% t(e 9ureau ofCustoms. (e car*o =as c(ec;e% ot( t(e steve%orin* compan an% t(earrastre operator an% =as foun% in *oo% or%er. ?n t(e contract of carria*e,(o=ever, it =as stipulate% t(at t(e carrier in no lon*er liale for t(e car*o upon its%eliver to t(e (an%s of t(e customs aut(orities. (e car*o =as later %elivere% to9inamira an% a marine surveor foun% t(at some =ere missin* value% at $32.63.o=er Court (el% t(at t(e carrier liale.

Iss!e B(et(er or not t(e stipulations limitin* t(e liailit of t(e carrier is vali%.

He'" B(ile %eliver of t(e car*o to t(e customs aut(orities is not %eliver tot(e consi*nee of t(e person =(o (as t(e ri*(t to receive t(em as contemplate% in

Article 1736 of t(e Civil Co%e ecause in suc( case t(e *oo%s are still in t(e (an%sof t(e *overnment an% t(e o=ner cannot e e@ercise %ominion over t(em,

(o=ever, t(e parties ma a*ree to limit t(e liailit of t(e carrier consi%erin* t(att(e *oo%s (ave still to *o t(rou*( t(e inspection of t(e customs aut(orities eforet(e are actull turne% over to t(e consi*nee.

(ese stipulations limitin* liailit is not contrar to morals or pulicpolic. (is is a situation =(ere t(e carrier loses control of t(e *oo%s ecause of acustom re*ulation an% it is unfair t(at it e ma%e responsile for an loss or%ama*e t(at ma e cause% to t(e *oo%s %urin* t(e interre*num.

5u%*ment reverse%.

AMERICAN PRESIDENT LINES4 LTD. $s. CA

Facts American $resi%ent ines !A$# vessel $resi%ent Bas(in*ton!Carrierfor s(ort# receive an% loa%e% on oar% at os An*eles, California, t(e su:ect oft(e s(ipment of one !1# unit of Sumersile 5oc; $ump, containe% in !3# o@es,complete an% in *oo% or%er con%ition, covere% Commercial &nvoice No. 6/2"+6,an% $ac;in* ist. &t =as for transport to 4anila in favor or in%ale Development

Corporation, t(e consi*nee. (e CA&, t(ru 'or=ar%ers Direct Containeines, &nc., issue% its clean 9ill of a%in* No. C0&4N12/. (e s(ipment =asinsure% 'G &ns. Corp. for $81, 82.2

(e %efen%ant CA& transs(ippe% t(e s(ipment in 0on*;on* onoar% t(e vessel 4S P$artasJ, =(ic( arrive% at t(e $ort of 4anila, on Septemer 61"87. ?n t(e same %ate, t(e s(ipment =as %isc(ar*e% an% turne% over to 4arina$ort Services, &nc.!Arrastre/, =it( one o@ in a% or%er con%ition, s(o=in* si*ns o(avin* een previousl tampere%E (ence, covere% a urn over Surve Car*oesNo. A/88+1. (e car*o remaine% =it( t(e AAS for ten %as until it =as=it(%ra=n on April 16, 1"87 t(e %efen%ant ro;er =(ic( %elivere% t(e same tot(e consi*nee, aforementione%, at its =are(ouse, =(ere t(e sai% s(ipment =ase@amine% an% inventorie%, an% t(e one o@ %isc(ar*e% from t(e CA&Js

vessel in a% or%er con%ition, =as foun% s(ort of one piece =aster cone an% onepiece 4ain elief value%, per invoice, at $28, 28.+8.$rivate respon%ent 'G &ns. Corp. file% a complaint for recover of a

sum of mone a*ainst A$, 4arina $ort Services, &nc., an% C4 9ro;era*e Co.&nc. (e trial court foun% in favor of private respon%ent an% or%ere% A$ to paprivate respon%ent t(e amount of $28, 28.+8. &n actual %ama*es,

Iss!e B(at la= is applicale t(e Civil Co%e provisions or C?GSAO

He'" (e Civil Co%e. Bit( re*ar% to t(e contention of t(e carrier t(at C?GSAs(oul% control in t(is case, t(e same is of no moment. Art. 1763 of t(e Ne= CivCo%e provi%es t(at Ht(e la=s of t(e countr to =(ic( t(e *oo%s are transporte%s(all *overn t(e liailit of t(e common carrier in case of loss, %estruction an%%eterioration.I (is means t(at t(e la= of t(e $(ilippines on t(e Ne= Civil Co%en%er 1766 of NCC, Hin all matter not re*ulate% t(is Co%e, t(e ri*(ts an%oli*ations of common carriers s(all e *overne% t(e Co%e of Commerce an% Special a=s.I Art. 17361738, NCC *overns sai% ri*(ts an% oli*ations(erefore, alt(ou*( Sec !+# of C?GSA states t(at t(e carrier s(all not e liale inan amount e@cee%in* M+// per pac;a*e unless t(e value of t(e *oo%s (a% een%eclare% t(e s(ipper an% asserte% in t(e ill of la%in*, sai% section is merelsupplementar to t(e provisions of t(e Ne= Civil Co%e.

SER-ANDO $s. PHILIPPINE STEAM NA-I&ATION CO.

Facts Clara ) 9ico an% Amparo Servan%o loa%e% on oar% t(e $(ilippineSteam Navi*ation vessel, 'S176, for carria*e from 4anila to $ulupun%an, Ne*ros?cci%ental, car*oes of rice an% colore% paper as evi%ence% t(e correspon%in*ills of la%in* issue% t(e carrier.

pon arrival of t(e vessel at $ulupan%an in t(e mornin* of Noveme18, 1"63, t(e car*oes =ere %isc(ar*e%, complete an% in *oo% or%er, unto t(e=are(ouse of t(e 9ureau of Customs. Aout 2L// p.m. of t(e same %a, sai%=are(ouse =as raze% a fire of un;no=n ori*in, %estroin* Servan%oJs car*oes.

Iss!e B(et(er or not t(e stipulations in t(e ill of la%in* limitin* t(e liailit ocarrier is vali%.

He'" (e court a uo (el% t(at t(e %eliver of t(e s(ipment on uestion tot(e =are(ouse of t(e 9ureau of Customs is not t(e %eliver contemplate%

Article 1736E an% since t(e urnin* of t(e =are(ouse occurre% efore actual oconstructive %eliver of t(e *oo%s to t(e appellees, t(e loss is c(ar*eale a*ainst(e appellant.

0o=ever, t(at in t(e ills of la%in* issue% for t(e car*oes in uestionparties a*ree% to limit t(e responsiilit of t(e carrier for t(e loss or %ama*e t(ama e cause% to t(e s(ipment insertin* t(erein t(e follo=in* stipulation.

HClause 1. Carrier s(all not e responsile for loss or %ama*e tos(ipments ille% Ho=nerJs ris;I unless suc( %ama*e is %ue to ne*li*ence of carrierNor s(all carrier e responsile for loss or %ama*e cause force ma:eure%an*ers or acci%ents of t(e sea or ot(er =atersE =arE pulic enemies, @@@ fire @@@.I

Be sustain t(e vali%it of t(e aove stipulationE t(ere is not(in* t(ereint(at is contrar to la=, morals or pulic polic. Appellees =oul% conten% t(at t(eaove stipulation %oes not in% t(em ecause it =as printe% in fine letters on t(eac; of t(e ills of la%in*E an% t(at t(e %i% not si*n t(e same. (is ar*umenoverloo;s t(e pronouncement of t(is Court in ?n* )iu vs. Court of Appeals.

HB(ile it ma e true t(at petitioner (a% not si*ne% t(e plane tic;et, (eis nevert(eless oun% t(e provisions t(ereof. Suc( provisions (ave een (el%

to e part of t(e contract of carria*e an% vali% an% in%in* upon t(e passen*ere*ar%less of t(e latterJs lac; of ;no=le%*e or assent to t(e re*ulation.I

(ere is not(in* in t(e recor% to s(o= t(at appellant carrier in %ela int(e performance of its oli*ation nor t(at =as t(e cause of t(e fire t(at ro;e out int(e CustomJs =are(ouse in an=a attriutale to t(e ne*li*ence of t(e appellanor its emploees.

&ANON $s. CO,RT OF APPEALS

Facts Gelacio umamin* contracte% t(e services of 4auro 9. Ganzon to(aul 3/+ tons of scrap iron from 4ariveles, 9ataan, to t(e port of 4anila on oar%t(e li*(ter C H9atman.I Ganzon t(en sent (is li*(ter H9atmanI to 4ariveles=(ere it %oc;e%.


22/41

?n Decemer 1, 1"+6, Gelacio umamin* %elivere% t(e scrap iron to%efen%ant 'ilomeno NizaE captain of t(e li*(ter, for loa%in* =(ic( =as actualle*an on t(e same %ate t(e cre= of t(e li*(ter.

B(en aout of t(e scrap of t(e scrap iron =as alrea% loa%e%, 4aorA%vincula of 4ariveles, 9ataan, arrive% an% %eman%e% $+, ///.// fromumamin*.

(e latter resiste% t(e s(a;e%o=n an% after a (eate% ar*ument, 4aorA%vincula %re= (is *un an% fire% at umamin*. (e *uns(ot =as not fatal utumamin* (a% to e ta;en to a (ospital in 9alan*a, 9ataan, for treatment.

After some time, t(e loa%in* of t(e scrap iron =as resume%. 9ut onDecemer , 1"+6, Actin* 4aor 9asillo u, accompanie% t(e t(reepolicemen, or%ere% Captain 'ilomeno Niza an% (is cre= to %ump t(e scrap iron

=(ere t(e li*(ter =as %oc;e%.(e rest =as rou*t( to t(e compoun% of NASSC?. Actin* 4aor uissue% a receipt statin* t(at t(e 4unicipalit of 4ariveles (a% ta;en custo% of t(escrap iron.

Iss!e B(et(er or not t(e scrap iron =ere alrea% %elivere%.

He'" $etitioner Ganzon insists t(at t(e scrap iron (a% not eenuncon%itionall place% un%er (is custo% an% control to ma;e (im liale. 0o=ever,(e completel a*rees =it( t(e respon%ent CourtJs fin%in* t(at on Decemer 1,1"+6, t(e private respon%ent %elivere% t(e scraps to Captain Niza for loa%in* int(e li*(ter H9atman.I (at t(e petitioner, t(ru (is emploees, actuall receive% t(escraps is freel a%mitte%.

9 t(e sai% act of %eliver, t(e scraps =ere uncon%itionall place% int(e possession an% control of t(e common carrier an% upon t(eir receipt t(ecarrier for transportation, t(e contract of carria*e =as %eeme% perfecte%.Conseuentl, t(e petitionercarrierJs e@traor%ina responsiilit for t(e loss,%estruction, or %eterioration of t(e *oo%s commence%.

$ursuant to Art. 1738, suc( e@traor%inar responsiilit =oul% cease

onl upon t(e %eliver, actual or constructive, t(e carrier to t(e consi*nee, or tot(e person =(o (as a ri*(t to receive t(em. (e fact t(at part of t(e s(ipment (a%not een loa%e% on oar% t(e li*(ter %i% not impair t(e sai% contract oftransportation as t(e *oo%s remaine% in t(e custo% an% control of t(e carrier,aleit unloa%e%.

SAL,DO4 JR. $s. CO,RT OF APPEALS

Facts After t(e %eat( of plaintiffJs mot(er, Crispina Salu%o, $omiers;i an%Son 'uneral 0ome of C(ica*o rou*(t t(e remains to Continental 4ortuar AirServices =(ic( oo;e% t(e s(ipment of t(e remains from C(ica*o to San'rancisco BA an% from San 'rancisco to 4anila =it( $A. (e remains =ereta;en to t(e C(ica*o Airport, ut it turne% out t(at t(ere =ere t=o o%ies in t(esai% airport. Some(o= t(e t=o o%ies =ere s=itc(e%E t(e cas;et earin* t(eremains of plaintiffJs mot(er =as mista;enl sent to 4e@ico an% =as opene% t(ere.(e s(ipment =as imme%iatel loa%e% on $A fli*(t an% arrive% on 4anila a %aafter it e@pecte% arrival on ?ctoer 2", 1"76.

$laintiff file% a %ama*e suit =it( C'& of ete, conten%in* t(at ransBorl% Airlines an% $A =ere liale for miss(ipment, t(e eventual %ela on t(e

%eliver of t(e car*o containin* t(e remains, an% of t(e %iscourtes of itsemploees to t(em.(e court asolve t(e t=o airline companies of an liailit. (e CA

affirme% suc( %ecision.

Iss!e B(et(er or not t(e carrier is liale for %ama*es.

He'" (e recor%s reveal t(at petitioners, particularl 4aria an% SaturninoSalu%o, a*onise% for nearl five (ours, over t(e possiilit of losin* t(eir mot(erJsmortal remains, unatten%e% to an% =it(out an assurance from t(e emploees ofBA t(at t(e =ere %oin* ant(in* aout t(e situation. (e =ere entitle% to t(eun%erstan%in* an% (umane consi%eration calle% of an% commensurate =it( t(ee@traor%inar %ili*ence reuire% for common carriers, an% not t(e col% insensitivitto t(eir pre%icament. Common sense coul% an% s(oul% (ave %ictate% t(at t(ee@ert a little effort in ma;in* a more e@tensive inuir t(emselves or t(rou*(t(eir superiors, rat(er t(an :ust s(ru* off t(e prolem =it( a callous an% uncarin*remar; t(at t(e (a% no ;no=le%*e aout it. Bit( all t(e mo%ern communicationseuipment rea%il availale to t(em, it coul% (ave easil facilitate% sai% inuir.BAJs apat(etic stance =(ile not le*all repre(ensile is morall %eplorale.

osin* a love% one, especiall oneJs parent, is a painful e@perience.?ur culture accor%s utmost ten%erness (uman feelin*s to=ar% an% in reverenceto t(e %ea%. (at t(e remains of t(e %ecease% =ere suseuentl %elivere%, aleit,elate%l an% eventuall lai% in (er final restin* place is of little consolation. (eimperviousness %isplae% BAJs personnel, even for :ust t(at fraction of time,=as especiall con%emnale particularl in t(e (ours of ereavement of t(e familof Crispina Salu%o, intensifie% an*uis( %ue to t(e uncertaint of t(e=(ereaouts of t(eir mot(erJs remains. BAJs personnel =ere remiss in t(eoservance of t(at *enuine (uman concern an% professional attentivenessreuire% an% e@pecte% of t(em.

(e fore*oin* oservations, (o=ever, %o not appear to e applicaleto respon%ent $A. No attriution of %iscourtes or in%ifference (as een ma%ea*ainst $A petitioners an%, in fact, petitioner 4aria Salu%o testifie% t(at it =asto $A t(e repaire% after failin* to receive proper attention from BA. &t =as from$A t(at t(e receive% confirmation t(at t(eir mot(erJs remains =oul% e on t(esame fli*(t =it( t(em.

$etitionerJs ri*(t to e treate% =it( %ue courtes in accor%ance =it( t(e%e*ree of %ili*ence reuire% la= to e e@ercise% ever common carrier =asviolate% t(e BA an% t(is entitles t(em, atleast to nominal %ama*es from BAalone. Articles 2221 an% 2222 of t(e Civil Co%e ma;e it clear t(at nomina%ama*es are not inten%e% for in%emnification of loss suffere% ut for t(evin%ication or reco*nition of a ri*(t violate% or inva%e%. (e are recoverale=(ere some in:ur (as een %one ut t(e amount of =(ic( t(e evi%ence fails tos(o=, t(e assessment of %ama*es ein* left to t(e %iscretion of t(e couraccor%in* to t(e circumstances of t(e case.

MACAM $s. CO,RT OF APPEALS

Facts $etitioner 9enito 4acam s(ippe% on oar% t(e vessel Nen 5ian*t(rou*( local a*ent respon%ent Ballem $(ilippines S(ippin*, &nc. =atermelonsvalue% at SM+,"+/.// an% fres( man*oes value% at SM1,273.6. (e s(ipmen=as oun% for 0on*;on* =it( $a;istan 9an; as consi*nee an% Great $rospecCompan of o=loon, 0on*;on* as notif part. $etitionerJs %epositor an;Consoli%ate% 9an;in* Corporation!S?&D9AN# pai% petitioner in a%vance t(etotal value of t(e s(ipment of SM2/,223.6.

pon arrival in 0on*;on*, t(e s(ipment =as %elivere% respon%enBA4 %irectl to G$C, not to $a;istan 9an;, an% =it(out t(e reuire% ill ola%in* (avin* een surren%ere%. Suseuentl, G$C faile% to pa $a;istan 9an;suc( t(at t(e latter, still in possession of t(e ori*inal ills of la%in*, refuse% to papetitioner t(rou*( S?&D9AN. Since S?&D9AN alrea% prepai% petitioner t(evalue of t(e s(ipment, it %eman%e% pament from respon%ent BA4 ut =asrefuse%. $etitioner returne% t(e amount involve% to S?&D9AN, an% t(en%eman%e% pament from respon%ent BA4 in =ritin* ut to no avail.

0ence petitioner sou*(t collection of t(e value of t(e s(ipment iSM2/,223.6 from respon%ents efore t(e C of 4anila, ases on %eliver ot(e s(ipment to G$C =it(out presentation of t(e ills of la%in* an% an*uarantee.

Iss!e B(et(er or not respon%ents are liale to petitioner for releasin* t(e*oo%s to G$C =it(out t(e ills of la%in* or an; *uaranteeO

He'" n%er Art. 1736 of t(e Civil Co%e, t(e e@traor%inar responsiilit of t(ecommon carrier lasts until actual or constructive %eliver of t(e car*oes to t(econsi*nee or to t(e person =(o (as a ri*(t to receive t(em. $A&SAN 9AN =asin%icate% in t(e ills of la%in* as consi*nee =(ereas G$C =as notifin* part0o=ever, in t(e e@port invoices G$C =as clearl name% as uerFimporter$etitioner also referre% to G$C as suc( in (is %eman% letter to respon%enBA4 an% in (is complaint efore t(e trial court. (is premise %ra=s us toconclu%e t(at t(e %eliver of t(e car*oes to G$C as uerFimporter =(ic(conformal =it( Art. 1736 (a%, ot(er t(an t(e consi*nee, t(e ri*(t to receive t(em=as proper.

(e real issue is =(et(er respon%ents are liale to petitioner foreleasin* t(e *oo%s to G$C =it(out t(e ills of la%in* or an; *uarantee.

'rom t(e testimon of petitioner, =e *at(er t(at (e (as eentransactin* =it( G$C as uerFimporter for aroun% 2 to 3 ears alrea%. B(enman*oes an% =atermelons are in season, (is s(ipment to G$C usin* t(e facilities

of respon%ents is t=ice or t(rice a =ee;. (e *oo%s are release% to G$C. &t (aseen t(e practice of petitioner to reuest t(e s(ippin* lines to imme%iatel releaseperis(ale car*oes suc( as =atermelons an% fres( man*oes t(rou*( telep(onecalls (imself or (is Hpeople.I &n transactions covere% a letter of cre%it, an;*uarantee is normall reuire% t(e s(ippin* lines prior to releasin* t(e *oo%s9ut for uers usin* tele*rap(ic transfers, petitioner %ispenses =it( t(e an*uarantee ecause t(e *oo%s are alrea% full pai%. &n (is several ears ousiness relations(ip =it( G$C an% respon%ents, t(ere =as not a sin*le instance=(en t(e ill of la%in* =as first presente% efore t(e release of t(e car*oes.

MAERS9 LINE $s. CO,RT OF APPEALS

Facts $rivate respon%ent!consi*nee# or%ere% from li ill. &nc.!s(ipper# 6//,///empt *elatin capsules for t(e manufacture of (is p(armaceutical pro%ucts. (e4emoran%um of S(ipment provi%es t(at t(e s(ipper a%vise% t(e consi*nee t(at(e *oo%s =ere alrea% s(ippe% on oar% t(e vessel of petitioner for s(ipment tot(e $(ilippines via ?a;lan%, California. (e specifie% %ate of arrival =as April 31"77. 'or reasons un;no=n, sai% car*o of capsules =ere mis(ippe% an% %iverte%

to ic(mon%,


23/41

Iss!e B(et(er or not respon%ent is entitle% to %ama*es resultin* from %ela int(e %eliver of t(e s(ipment in t(e asence in t(e ill of la%in* of a stipulation ont(e perio% of %eliver.

He'" )es. B(ile it is true t(at common carriers are not oli*ate% la= to carran% to %eliver merc(an%ise, an% persons are not veste% =it( t(e ri*(t to prompt%eliver, unless suc( common carriers previousl assume t(e oli*ation to %eliverat a *iven %ate or time, %eliver of s(ipment or car*o s(oul% at least e ma%e=it(in a reasonale time. An e@amination of t(e su:ect ill of la%in* s(o=s t(att(e su:ect s(ipment =as estimate% to arrive in 4anila on April 3, 1"77. B(ilet(ere =as no special contract entere% into t(e parties in%icatin* t(e %ate ofarrival of t(e su:ect s(ipment, petitioner nevert(eless, =as ver =ell a=are of t(e

specific %ate =(en t(e *oo%s =ere e@pecte% to arrive as in%icate% in t(e ill ofla%in* itself. &n t(is re*ar%, t(ere arises no nee% to e@ecute anot(er contract for t(epurpose as it =oul% e a mere superfluit. &n t(e case efore us, =e fin% t(at a%ela in t(e %eliver of t(e *oo%s spannin* a perio% of t=o mont(s an% seven %asfalls =as eon% t(e realm of reasonaleness.

Bit( respect to t(e rulin* t(at contracts of a%(esion are voi%, SC sai%t(at it =as necessaril so an% t(at it is a settle% rule t(at ills of la%in* arecontracts not entirel pro(iite%.

@SMAEL $s. )ARRETTO

Facts)smael, a %omestic corporation see;s to recover from 9arretto $","/,=(ic( is t(e alle*e% value of four cases of merc(an%ise =(ic( it %elivere% to t(esteams(ip An%res, at 4anila to e s(ippe% to Suri*ao. (e sai% merc(an%ise =asnever %elivere% to t(e consi*nee Solomon S(aruff. 9arretto %enie% all t(ealle*ations a*ainst (im statin* t(at t(e sai% merc(an%ise =as never %elivere% to(im. 0e also state% t(at un%er t(e provision of para*rap( 7 of t(e printe% con%itionat t(e ac; of t(e ill of la%in*, plaintiffJs ri*(t of action is arre% for t(e reason t(at

it =as not rou*(t =it(in 6/ %as from t(e time t(e cause of action accrue%.9arretto also alle*e% t(at in provision 12 of t(e ill of la%in*, (e is not liale for t(ee@cess of $3//.// for an pac;a*e of sil; unless t(e value an% contents of suc(pac;a*e are correctl %eclare% in t(e ill of la%in* at t(e time of s(ipment. (elo=er court ren%ere% its :u%*ment in favor of )smael > co.

Iss!e B(et(er or not t(e stipulation in t(e ill of la%in* limitin* t(e liailit of%efen%ant of not more t(an $3// is vali%.

He'" No, t(e stipulation is not vali%. A common carrier cannot la=full stipulate fore@emption from liailit, unless suc( e@emption is :ust an%reasonale an% t(econtract is freel an% fairl ma%e.

A common carrier cannot la=full stipulate for t(e e@emption from liailit, unlesssuc( e@emption is :ust an% reasonale. (e carrier cannot limit its liailit for in:urto or loss of *oo%s s(ippe% if suc( =as cause% its o=n ne*li*ence.

9ase% upon t(e fin%in*s of fact of t(e trial court =(ic( are sustaine% t(e evi%ence, t(e plaintiff %elivere% to t(e %efen%ants 16 cases of sil; consi*ne%an% to e %elivere% t(e %efen%ants to Salomon S(aruff in Suri*ao. 'our of suc(cases =ere never %elivere% to t(e consi*nee, an% t(e evi%ence s(o=s t(at t(eir

value is t(e alle*e% in t(e complaint. Also, t(e *oo%s in uestion =ere s(ippe%from 4anila on ?ctoer 2+, 1"22, to e %elivere% to Salomon S(aruff in Suri*ao,$laintiffKs ori*inal complaint =as file% on April 17, 1"23, or a little less t(an si@mont(s after t(e s(ipment =as ma%e. (e lo=er court also points out t(at t(econ%itions in uestion are not printe% on t(e triplicate copies =(ic( =ere %elivere%to t(e plaintiff, an% t(at reason t(ereof t(e are not in%in* upon t(e plaintiff.(e clause in uestion provi%es t(at t(e carrier s(all not e liale for loss or%ama*e from an cause or for an reason to an amount in e@cess of $3// for ansin*le pac;a*e of sil; or ot(er valuale car*o.

(e evi%ence s(o=s t(at 16 cases =ere s(ippe%, an% t(at t(e valueof eac( case =as ver near $2,+//. &n t(is situation, t(e limit of %efen%antsK liailitfor eac( case of sil; for loss or %ama*e from an cause or for an reason =oul%put it in t(e po=er of t(e %efen%ants to (ave ta;en t(e =(ole car*o of 16 cases ofsil; at a valuation of $3// for eac( case, or less t(an oneei*(t of its actual value.&f t(at rule of la= s(oul% e sustaine%, no sil; =oul% ever e s(ippe% from oneislan% to anot(er in t(e $(ilippines. Suc( a limitation of value is unconscionalean% voi% as a*ainst pulic polic. (ere is no merit in t(e appeal. (e :u%*ment oft(e lo=er court is affirme%.

SHEWARAM $s. PHILIPPINE AIR LINES4 INC.

Facts S(e=aram, a pain* passen*er on %efen%antKs aircraft fli*(t fromQamoan*a Cit oun% for 4anila. 0e c(ec;e% in t(ree pieces of a**a*es, asuitcase an% t=o ot(er pieces. B(en plaintiff $armanan% S(e=aram arrive% in4anila, (is suitcase %i% not arrive =it( (is fli*(t ecause it =as sent to &li*an. &t=as foun% out t(at it =as mista**e% %efen%antJs personnel. (e station a*entof t(e $A in &li*an cause% t(e a**a*e to e sent to 4anila for %eliver toplaintiff. Defen%ant a%mitte% t(at t(e t=o items !ransistor a%io an% t(e ollfle@Camera# coul% not e foun% insi%e t(e suitcase. An action for %ama*es =asinstitute% a*ainst $A. C rule% t(at t(e loss of t(e articles =as %ue to t(ene*li*ence of t(e emploees of $A. $A (o=ever =as or%ere% to pa %ama*esof $1//.// onl, as t(is =as its limite% liailit as state% in t(e tic;et. !H(e liailit,if an, for loss or %ama*e to c(ec;e% a**a*e or for %ela in t(e %eliver t(ereof islimite% to its value an%, unless t(e passen*er %eclares in a%vance a (i*(ervaluation an% pa an a%%itional c(ar*e t(erefor, t(e value s(all e conclusivel

%eeme% not to e@cee% $1//.// for eac( tic;et.I#. An appeal =as t(en rou*(t up plaintiff.

Iss!e B(et(er or not t(e limite% liailit rule applies.

He'" No. (e limite% liailit rule s(all not appl. (e reuirements provi%e% inArticle 17+/ of t(e Ne= Civil Co%e must e complie% =it( efore a common carriecan claim a limitation of its pecuniar liailit in case of loss, %estruction o%eterioration of t(e *oo%s it (as un%erta;en to transport. &n t(e case efore us Beelieve t(at t(e reuirements of sai% article (ave not een met. &t can not e sai%t(at t(e appellee (a% actuall entere% into a contract =it( t(e appellantemo%in* t(e con%itions as printe% at t(e ac; of t(e tic;et. (e fact t(at t(ose

con%itions are printe% at t(e ac; of t(e tic;et stu in letters so small t(at t(e are(ar% to rea% =oul% not =arrant t(e presumption t(at t(e appellee =as a=are oft(ose con%itions suc( t(at (e (a% fairl an% freel a*ree% to t(ose con%itions.

S(e=aram %i% not a*ree to t(e stipulation on t(e tic;et, as manifeste% t(e fact(at S(e=aram %i% not si*n t(e tic;et.

ON& @I, $s. CO,RT OF APPEALS

Facts $etitioner =as pain* passen*er of respon%ent $(ilippine Airlines on oar%fli*(t No. "6 from 4actan Ceu oun% for 9utuan Cit. 0e =as sc(e%ule% toatten% t(e trial in t(e Court of 'irst instance , 9r. && t(ereat. As a passen*er, (ec(ec;e% in one piece of lu**a*e, a ull maleta. (e plane left 4actan AirportCeu Cit at aout 1pm an% arrive% at 9acasi Airport, 9utuan Cit at past 2pm oft(e same %a. pon arrival, petitioner claime% (is lu**a*e ut it coul% not efoun%. Accor%in* to petitioner, it =as onl after reactin* in%i*nantl to t(e loss t(at(e matter =as atten%e% t(e porter cler; =(ic( (o=ever, t(e later %enie%B(en t(e lu**a*e =as %elivere% to t(e petitioner =it( t(e information t(at t(e loc;

=as open, (e foun% out t(at t(e fol%er containin* %ocuments an% transcripts =eremissin*, asi%e from t(e t=o *ift items for (is parentsinla=. $etitioner refuse% toaccept t(e lu**a*e. $etitioner file% a Complaint a*ainst $A for %ama*es foreac( of contract of transportation. (e lo=er Court foun% $A to (ave acte% ina% fait( an% =it( malice an% %eclare% petitioner entitle% to moral %ama*es. CA(el% t(at $A =as *uilt onl of simple ne*li*ence, reverse% t(e :u%*ment of t(etrial Court *rantin* petitioner moral an% e@emplar %ama*es, ut or%ere% $A topa plaintiff t(e sum of $1//.//, t(e a**a*e liailit assume% it un%er t(econ%ition of carria*e printe% at t(e ac; of t(e tic;et. 0ence t(e present petition.

Iss!e B(et(er or not $A acte% =it( *ross ne*li*ence.

He'" No. $A %i% not act in a% fait(. &t =as t(e %ut of $A to loo; fopetitionerJs lu**a*e =(ic( (a% een miscarrie%. $A e@erte% %ili*ent efforts tolocate t(e plaintiffJs a**a*e. $etitioner is neit(er entitle% to e@emplar %ama*es@emplar %ama*es can onl e *rante% if t(e %efen%ant as;e% in a =antonfrau%ulent, rec;less, oppressive or malevolent manner, =(ic( loss, in accor%ance=it( t(e stipulation =ritten at t(e ac; of t(e tic;et is limite% to $1// per lu**a*eplaintiff not (avin* %eclare% a *reater value an% not (avin* calle% t(e attention o

t(e %efen%ant on its value a% pai% t(e tariff t(ereon.B(ile it ma e true t(at petitioner (a% not si*ne% t(e plane tic;et, (e isnevert(eless oun% t(e provisions t(ereof. Suc( provisions (ave een (el% toe a part of t(e contract of carria*e, an% vali% an% in%in* upon t(e passen*ere*ar%less of t(e latterKs lac; of ;no=le%*e or assent to t(e re*ulation. &t is =(at is;no=n as a contract of a%(esion, in re*ar%s =(ic( it (as een sai% t(at contractsof a%(esion =(erein one part imposes a rea% ma%e form of contract on t(eot(er, as t(e plane tic;et in t(e case at ar, are contracts not entirel pro(iite%(e one =(o a%(eres to t(e contract is in realit free to re:ect it entirelE if (ea%(eres, (e *ives (is consent. A contract limitin* liailit upon an a*ree% valuation%oes not offen% a*ainst t(e polic of t(e la= fori%%in* one from contractin*a*ainst (is o=n ne*li*ence.

SEA/LAND SER-ICE4 INC. $s. IAC

Facts Sealan%, a forei*n s(ippin* an% for=ar%in* compan license% to %ousiness in t(e $(ilippines, receive% from Seaorne ra%in* Compan inCalifornia a s(ipment consi*ne% to Sen 0iap 0in*. (e s(ipper not (avin*

%eclare% t(e value of t(e s(ipment, no value =as in%icate% in t(e 9?. (es(ipment =as %isc(ar*e% in 4anila, an% =(ile a=aitin* transs(ipment to Ceu t(ecar*o =as stolen an% never recovere%. (e lo=er court sentences Sealan% to paCue t(e value of t(e lost car*o, t(e unrealize% profit an% attornes fees. (e CAaffirme% t(e %ecision, (ence t(e petition.

Iss!e B(et(er or not t(e consi*nee of seaorne frei*(t is oun% stipulations int(e coverin* ill of la%in* limitin* to a fi@e% amount t(e liailit of t(e carrier for lossor %ama*e to t(e car*o =(ere its value is not %eclare% in t(e ill.

He'" )es.(ere is no uestion of t(e ri*(t of a consi*nee in a ill of la%in* torecover from t(e carrier or s(ipper for loss of, or %ama*e to, *oo%s ein*transporte% un%er sai% ill, alt(ou*( t(at %ocument ma (ave een %ra=n up onl t(e consi*nor an% t(e carrier =it(out t(e intervention of t(e consi*nee.

Since t(e liailit of a common carrier for loss of or %ama*e to *oo%stransporte% it un%er a contract of carria*e so *overne% t(e la=s of t(ecountr of %estination an% t(e *oo%s in uestion =ere s(ippe% from t(e nite%


24/41

States to t(e $(ilippines, t(e liailit of Seaan% (as Cue is *overne% primaril t(e Civil Co%e, an% as or%aine% t(e sai% Co%e, supplementar, in all mattersnot cluttere% t(ere, t(e Co%e of Commerce an% special la=s. ?ne of t(esesupplementar special la=s is t(e Carria*e of *oo%s Sea Act !C?GSA#, ma%eapplicale to all contracts for t(e carria*e sea to an% from t(e $(ilippines $ortsin 'orei*n ra%e Comm. Act. 6+.

ven if Section !+# of C?GSA %i% not list t(e vali%it an% in%in*effect of t(e liailit limitation clause in t(e ill of la%in* (ere are full sustantial ont(e asis alone of Article 17" an% 17+/ of t(e Civil Co%e. (e :ustices of suc(stipulation is implicit in its *ivin* t(e o=ner or s(ipper t(e option of avoi%in*accrual of liailit limitation t(e simple e@pe%ient of %eclarin* t(e value of t(es(ipment in t(e ill of la%in*.

(e stipulation in t(e ill of la%in* limitin* t(e liailit of Seaan% forloss or %ama*es to t(e s(ipment covere% sai% rule to SM+// per pac;a*eunless t(e s(ipper %eclares

law on transportation doctrines

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