TRANSPORTATION LAW

Reference: Essentials of Transportation and Public Utilities by Timotheo B. Aquino and Ramon Paul L. Hernando (2016)

PART I – COMMON CARRIERS

CHAPTER 1 – GENERAL CONSIDERATIONS
CHAPTER 1 – GENERAL CONSIDERATIONS

CHAPTER 1 – GENERAL CONSIDERATIONS

1. Definition of Contract of Transportation
2. Parties
a. Carriage of Passengers
 Baliwag Transit Corportation v. Court of Appeals, G.R. No. 80447, January 31, 1989
 Jesusa Vda. De Nueca v. The Manila Railroad Company, No. 31731-R, January 30, 1968;
b. Carriage of Goods
 Everett Steamship Corporation v. Court of Appeals, et al., No. 122494, October 8, 1998
 Mauro Ganzon v. Court of Appeals, et al., No. L-48757, May 30, 1988
3. Perfection
a. Aircraft
 British Airways v. Court of Appeals, No. 92288, February 9, 1993;
 Korean Airlines Co. Ltd. v. Court of Appeals, No. 114061, August 3, 1994;
b. Buses, Jeepneys, and Street Cars
 Dangwa Transportation Co., Inc. v. Court of Appeals, et al., No. 95582, October 7, 1991
c. Trains
 Jesusa Vda. De Nueca v. The Manila Railroad Company, No. 31731-R, January 30, 1968;
 Light Rail Transit Authority (LRTA), et al., v. Natividad, et al., No. 145804, February 6,
2003
4. Common Carrier
 De Guzman v. Court of Appeals, No. L-47822
 Asia Lighterage and Shipping, Inc. v. Court of Appeals, GR No. 147246, August 19, 2003
 Bascos v. Court of Appeals, G.R. No. 101089, April 7, 1993
 Fabre, Jr. v. Court of Appeals, No. 111127, July 26, 1996
 First Philippines Industrial Corporation v. Court of Appeals, 300 SCRA 66
 National Steel Corporation v. Court of Appeals, No. 112287, Dece,ber 12, 1997
 Sps. Cruz v. Sun Holidays, Inc., GR No. 186312, June 29, 2010
5. Test
 Vlasons Shipping Inc. v. Court of Appeals and National Steel Corporation, GR No. L-
112350, December 12, 1997
6. Characteristics
a. Broader Concept
 First Philippines Industrial Corporation v. Court of Appeals, 300 SCRA 66
 National Steel Corporation v. Court of Appeals, No. 112287, Dece,ber 12, 1997
b. Ancillary Business
 De Guzman v. Court of Appeals, No. L-47822
c. Limited Clientele
 Asia Lighterage and Shipping, Inc. v. Court of Appeals, GR No. 147246, August 19, 2003
 Calvo v. UCPB General Insurance Co., GR No. 148946, March 19, 2002
 Phil. American Genreal Insurance Company, et al. v. PKS Shipping Company, GR No.
149038, April 9, 2003
d. Means of Transportation
 First Philippines Industrial Corporation v. Court of Appeals, 300 SCRA 66
7. Effect of Charter Party

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  Caltex (Phils.) v. Sulpicio Lines, 315 SCRA 709
 Cebu Salvage Corporation v. Philippine Home Assurance Corp., GR No. 150403, January
25, 2007
 Home Insurance Co. v. American Steamship Agencies, Inc., No. L-25599, April 4, 1968
 Loadstar Shipping Co., Inc. Pioneer Asia Insurance Corp., G.R. No. 157481, January
2006
 Planters Products, Inc. v. Court of Appeals, et al., GR No. 101503, September 5, 1993
 Tabacalera Insurance Co., et al., v. North Front Shippins Services, Inc. and Court of
Appeals, GR No. 119197, May 16, 1997
8. Common Carrier vs. Private Carrier
 Arada v. Court of Appeals, G.R. No. 98243, July 1, 1992
 Home Insurance Co. v. American Steamship Agencies, Inc., No. L-25599, April 4, 1968
 Planters Products, Inc. v. Court of Appeals, et al., GR No. 101503, September 5, 1993
 Valenzuela Hardwood and Industrial Supply v. Court of Appeals, G.R. No. 102316, June
30, 1997
9. Common Carrier vs. Other Contracts
a. Common Carrier vs. Towage
b. Common Carrier vs. Arrastre
c. Common Carrier vs. Stevedoring
d. Common Carrier vs. Travel Agency
 Crisostomo v. Court of Appeals, 409 SCRA 528
10. Tramp Service and Line Service
11. Governing Laws
a. Summary of Rules
 Eastern Shippine Lines, Inc. v. IAC and Development Insurance and Surety Corp., GR
No. L-69044, May 29, 1987
12. Nature of Business
13. Registered Owner Rule and Kabit System
a. Registration Laws
b. Registered Owner Rule
 BA Finance Corp. vs. CA, 215 SCRA 715
 Benedicto vs. IAC, 187 SCRA 547
 Equitable Leasing Corp. vs. Suyom, 388 SCRA 485
 Erezo, et al. vs. Jepte, 102 Phil. 103
 PCI Leasing and Finance, Inc. vs. UCPB General Insurance, Inc. 357 SCRA 141
 Villanueva vs. Domingo, 438 SCRA 485
c. Kabit System
 Abelardo Lim vs. CA, G.R. No. 125817, January 16, 2002
 Baliwag Transit, Inc. vs. CA, 147 SCRA 82
d. Pari Delicto Rule
 Lita Enterprises vs. IAC, 129 SCRA 79
 Teja Marketing vs. IAC, 148 SCRA 347
e. Aircrafts and Vessel
14. Boundary System

CHAPTER 2 – OBLIGATIONS OF THE COMMON CARRIER

CHAPTER 1 – GENERAL CONSIDERATIONS

1. Obligation of the Carrier
a. Duty to Accept
 FC Fisher vs. Yangco Steamship Co., et al., 31 Phil. 1
 PAL v. Court of Appeals, GR No. 119706, March 4, 1996
b. Valid Grounds for Non-Acceptance
 Fisher v. Yangco Steamship Company et al., 80 CJS 1085

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 c. Duty to Deliver Goods
 Saludo, Jr. v. Court of Appeals, GR No. 95536, March 23, 1992
d. Consequences of Delay
 Maerskline vs. CA, 222 SCRA 108
 Saludo vs. CA, 207 SCRA 499
e. Rights of Passengers in Case of Delay
 Trans-Asia Shipping Lines, Inc. v. Court of Appeals and Arroyo, GR No. 118123,
March 4, 1996
f. Place of Delivery
g. To whom delivered
h. Delay to transport Passengers
 Singson v. Court of Appeals and Cathay Pacific Airways, Inc., GR No. 119995,
November 18, 1997
2. Duty to Exercise Extraordinary Diligence
 Asian Terminals, Inc. v. First Lepanto-Taisho Insurance Corporation, G.R. No. 185964,
June 16, 2014
 Compania Maritima vs. Insurance Co., 12 SCRA 213
 Eastern Shipping vs. CA, 234 SCRA 79
 Ganzon vs. CA, 161 SCRA 646
 Loadstar Shipping, Inc. v. Court of Appeals and Manila Insurance Co., Inc. , GR No.
131621, September 28, 1999
 Macam vs. CA, 313 SCRA 77
 Philippines First Insurance Co., Inc. vs. Wallem Phils. Shipping, Inc., 582 SCRA 457
 Regional Container Lines vs. Netherlands Insurance Co., 598 SCRA 304
 Republic vs. Lorenzo Shipping Corp., 450 SCRA 551
 Rotterdam and the East Asiatic Co., Ltd. v. Glow Laks Enterprises, Ltd., G.R. No. 156330,
November 19, 2014
 Servando vs. Philippine Steam Navigation Co., 117 SCRA 832
 The Philippine American General Insurance Co., Inc. v. Court of Appeals and Felman
Shipping Lines, GR No. 116940, June 11, 1997
a. Code of Commerce Provisions
 Loadstar Shipping Company and Loadstar International Shipping Company,
Incorporated v. Malayan Insurance Company, Incorporated, G.R. No. 185565,
November 26, 2014
b. Presumption of Negligence
 Bachelo Express Inc., et al. v. Court of Appeals, et al., GR No. 85691, July 31, 1990
 Baliwag Transit, Inc. v. Court of Appeals, et al., GR No. 116110, May 15, 1996
 Coastwise Lighterage Corporation v. Court of Appeals and Philippine General
Insurance Company, GR No. 114167, July 12, 1995
 Delsan Transportation Lines, Inc. vs. American Home Assurance Corp., 498 SCRA
603
 Diaz vs. CA, 496 SCRA 468
 Eastern Shipping Lines, Inc. v. BPI/MS Insurance Corp., and Mitsui Sumitomo
Insurance Co., Ltd, G.R. No. 182864, January 12, 2015
 Eastern Shipping Lines, Inc. vs. The Nisshin Fire and Marine Insurance Co, and
Dowa Fire and Marine Insurance Co., Ltd. ,150 SCRA 464
 Gacal and Gacal v. PAL, GR No. 55300, March 15, 1990
 Mirasol vs. Robert Dollar, 53 Phil. 125
 Ynchausti Steamship vs. Dexter, 41 Phil. 289
c. Duration of Duty in Carriage of Goods
 Amparo Servando, Clara Uy Bico v. Philippine Steam Navigation Co., GR Nos.
36481-2, October 23, 1982
 Compania Maritima vs. Insurance Co., 12 SCRA 213
 Eastern Shipping vs. CA, 234 SCRA 79
 Ganzon vs. CA, 161 SCRA 646
 Macam vs. CA, 313 SCRA 77
 Philippines First Insurance Co., Inc. vs. Wallem Phils. Shipping, Inc., 582 SCRA 457

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  Regional Container Lines vs. Netherlands Insurance Co., 598 SCRA 304
 Republic vs. Lorenzo Shipping Corp., 450 SCRA 551
 Samar Mining Company, Inc. v. Nordeutscher Lloyd and CF Sharp and Company,
Inc., GR No. L-28673, October 23, 1984
 Servando vs. Philippine Steam Navigation Co., 117 SCRA 832
d. Commencement of Duty in Carriage of Passengers
 Aboitiz Shiping Corporatio v. Court of Appeals, et al., GR No. 84458, November 6,
1989
 Bataclan vs. Medina, 102 Phil. 181
 BT Co. vs. Caguimbal, 22 SCRA 171
 Gatchalian vs. Delim, 203 SCRA 126
 Japan Airlines vs. CA, 294 SCRA 19
 Juntilla vs. Fontanar, 136 SCRA 624
 La Mallorca vs. CA, 17 SCRA 739
 Lasam vs. Smith, 45 Phil. 657, February 2, 1924
 Necesito vs. Paras, 104 Phil. 75, June 30, 1958
 PAL vs. CA, 226 SCRA 423
 Philippine Rabbit Bus Lines, Inc. vs. IAC, 189 SCRA 158
 Trans-Asia Shipping Lines, Inc. vs. CA, 254 SCRA 260
 Vasquez vs. CA, 138 SCRA 553
e. New Civil Code Provisions
 Edgar Cokaliong Shipping Lines v. UCPB General Insurance Company, Inc., 404
SCRA 706, June 25, 2003
 Everett Steamship Corporation v. Court of Appeals, et al., No. 122494, October 8,
1998
 Philam Insurance Company, Inc. v. Heung-A Shipping Corporation and Wallem
Philippines Shipping, Inc. G.R. No. 187812, July 23, 2014
 Summa Insurance Corporation v. Court of Appeals and Mertro Port Service, Inc., GR
No. 84680, February 5, 1996

CHAPTER 3 – OBLIGATIONS OF THE PASSENGER AND THE SHIPPER

CHAPTER 1 – GENERAL CONSIDERATIONS

1. Duty to Exercise Due Diligence
a. Negligence of Shipper or Passenger
 Briñas vs. People, 125 SCRA 687
 Estacion v. Bernardo, 483 SCRA 222
 Fortune Express, Inc. vs. CA, 305 SCRA 14
 Lambert v. Heirs of Ray Castillon, 452 SCRA 285
 Syki v. Begasa, 414 SCRA 237
 Anuran v. Buno, 17 SCRA 224
 Phil. Rabbit Bus Lines, Inc. v. IAC, 189 SCRA 158
 Tiu v. Arriesgado, 437 SCRA 426
 Genobiagon v. Court of Appeals, 178 SCRA 422
 Manzanares v. People, 504 SCRA 354
2. Duty to Disclose
i. Damage Caused by Cargoes
 Saludo, Jr. v. Court of Appeals, GR No. 95536, March 23, 1992
3. Payment of Freight
 Republic of the Philippines v. Manila Electric Company, GR No. 141314, November
15, 2002
i. Who will pay the Freight
ii. Time of Payment
iii. Carrier’s Lien
4. Timely loading and unloading
i. Demmurage

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  Magellan Manufacturing Marketing Corporation v. Court of Appeals, No. 95523,
August 22, 1991
5. Permits
6. Shipper’s Load and Count
 Philam Insurance Company, Inc. v. Heung – A Shipping Corporation, et al., GR No.
187701, July 23, 2004
 Bankers & Manufacturers Assurance Corporation v. Court of Appeals, GR No. 80256,
October 2, 1992
 De Prado v. Manila Electric Co., GR No. 29462, March 7, 1992
7. Duties of Passenger
i. Travel Documents
 Crisostomo v. Court of Appeals, GR No. 138334, August 25, 2003
 Philippine Airlines, Inc. v. Court of Appeals, GR No. 123238, September 22,
2008
 Air France Philippines/KLM Air France v. De Camilis, GR No. 188961,
October 13, 2009
ii. Air Transportation of Passengers

CHAPTER 4 – DEFENSES OF THE COMMON CARRIER

CHAPTER 1 – GENERAL CONSIDERATIONS

1. Kinds of Defenses
 Necessito v.Paras, No. L-10605, June 30, 1958
2. Proximate Causation
a. Absence of Causation as a Defense
 Bacarro, et al. v. Court of Appeals, GR No. L- 34597, November 5, 1982
 Calalas v. Court of Appeals, 332 SCRA 356
 FGU Insurance Corporation v. GP Sarmiento Trucking Corporation, 386 SCRA 312
 Sabena Belgian World Airlines v. Court of Appeals and Ma. Paula San Agustin, GR No.
104685, March 14, 1996
 Calalas v. Court of Appeals, No. 122039, May 31, 2000
3. Defenses in the Carriage of Goods
a. Exclusivity of Defenses
 Philippine Charter Insurance Corp. v. Unknown Owner of the Vessel M/V Honor, GR No.
161883, July 8, 2005
 Belgian Chartering and Shipping NV v. Phi. First Insurance Co., Inc., No. 143133, June 5,
2002
 Delsan Transport Lines v. CA, No. 127897, November 15, 2001
b. Defenses in Carriage of Passengers
 Briñas vs. People, 125 SCRA 687
 Calalas vs. CA, 332 SCRA 356
 Fortune Express, Inc. vs. CA, 305 SCRA 14
 Japan Airlines vs. CA, 294 SCRA 19
 Asia Lighterage and Shipping, Inc. v. Court of Appeals, GR No. 1472346, August 19, 2003
 Pestano v. Sumayang, 346 SCRA 870
 Philippine Rabbit Bus Lines vs. IAC, 189 SCRA 158
 Tiu vs. Arriesgado, 437 SCRA 426
4. Fortuitous Events
a. Requisites of Fortuitous Event
 Lasam v. Smith, GR No. 19495, February 2, 1994
 Arada vs. CA, 210 SCRA 624
 Delsan Transport Lines, Inc. vs. CA, G.R. No. 127897, Nov. 15, 2001
 Eastern Shipping Lines, Inc. vs. CA, 196 SCRA 570
 Eastern Shipping Lines, Inc. vs. IAC, 150 SCRA 463

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  Japan Airlines v. Court of Appeals, et al., GR No. 118664, August 7, 1998
 Maersk Line v. Court of Appeals and Efren V. Castillo, GR No. 94761, May 17, 1993
 Necessito, et al. v. Paras, GR No. L-10605, June 30, 1958
 Philippine American General Insurance Co., Inc. vs. MCG Marine Services, Inc., G.R. No.
135645, March 8, 2002
 Yobido vs. CA, 281 SCRA 1
b. Effect of Carrier’s Participations
c. Rationale
 Tan Chiong Sian v. Inchausti, GR No. 6092, March 8, 1912
d. Fire
 Eastern Shipping Lines v. IAC, 150 SCRA 469
 Edgar Cokaliong Shipping Lines, Inc. v. UCPB, GR No. 140618, June 25, 2003
e. Storm
 The Philippine American General Insurance Co., Inc. v. MCG Marine Services, Inc. and
Gaerland, No. 135645, March 8, 2005
f. Hijacking
 Bascos v. Court of Appeals and Cipriano, GR No. 101089, April 7, 1993
 De Guzman v. Court of Appeals and Cendana, GR No. L-47822, December 12, 1988
g. Mechanical Defects
 Son v. Cebu Autobus Company, 94 Phil 892
 Necessito v. Paras, GR No. L-10605, June 30, 1958
 Lasam v. Smith, 45 Phil 607
 Coca-Cola Bottler’s Philippines v. Court of Appeals, 227 SCRA 293
 Landingin v. Pantranco, Nos. L-28014-15, May 29, 1970
h. Tire Blowouts
 Juntilla v. Fontanar, GR No. L-45637, May 31, 1958
i. Other Invalid Defenses
5. Public Enemy
 Bascos v. Court of Appeals and Cipriano, GR No. 101089, April 7, 1993
6. Nature of Goods and Improper Packing
 Philippine Charter Insurance Corp. vs. Unknown Owner of the Vessel M/V National Honor,
 Southern Lines, Inc. vs. CA, 4 SCRA 258
 Asian Terminals, Inc. v., Simon Enterprises, Inc., GR No. 17716, February 27, 2013
 Philippine Charter Insurance Corp. v. Unknown Owner of the Vessel M/V Honor, GR No.
161883, July 8, 2005
 AF Sanchez Breakarage v. Court of Appeals, December 21, 2004, 447 SCRA 427
 Virgines Calvo v. UCPB General Insurance, Co., Inc. GR No. 148496, March 19, 2002
 Belgian Overseas Chartering & Shipping NV n. Philippine First Insurance Co., GR No. 143133,
June 5, 2002
 Sulpico Lines, Inc. v. Fist Lepanto – Taisho Insurance Corp., GR No. 140349, June 29, 2005
7. Order of Public Authority
 Ganzon v. Court of Appeals and Gelacio Tumambing, GR No. L-48757, May 30, 1988
8. Defenses in Carriage of Passengers
9. Acts of Employees
a. Passenger has no duty to inquire
 Silverio Marchan, et al. v. Mendoza, No. 24471, August 30, 1968
 Maranan v. Perez, GR No. L-22272, June 26, 1976
 Yu Con v. Ipil, GR No. L-10195, December 29, 1916
b. Rationale
 Baliwag Transit, Inc. vs. CA, 256 SCRA 746
 LRTA vs. Natividad, 397 SCRA 75
 Mallari, Sr. v. Court of Appeals, 324 SCRA 147
 Maranan vs. Perez, 20 SCRA 412
 Pestano v. Sumayang, GR No. 139875, December 4, 2000
 Raymera v. Hiceta, 306 SCRA 102

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  Cangco v. Manila Railroad Co., No. 12191, October 14, 1918
10. Acts of Other Passengers and Third Persons
 Bachelor Express vs. CA, 188 SCRA 217
 De Guzman v. Court of Appeals and Cendana, GR No. L-47822, December 12, 1988
 Fortune Express, Inc. v. Court of Appeals, et al., GR No. 119756, March 18, 1999
 Gacal vs. PAL, 183 SCRA 189
 Mendoza and Lim v. Sps. Gomez, G.R. No. 160110, June 18, 2014
 Pilapil v. Court of Appeals et al., GR No. 52159, December 22, 1989
 Bacarro et al. v. Castano, No. 34597, November 5, 1982
11. Acts of the Shipper or the Passenger
a. Contributory Negligence of the Shipper
 Sealoader Shipping Corporation v. Grand Cement Manufacturing, et al., GR Nos. 167363,
December 15, 2010
b. Contributory Negligence of the Passenger
 Fortune Express, Inc. v. Court of Appeals, GR No. 119756, March 18, 1999
c. Causation
 Cervantes v. Court of Appeals, GR No. 125138, March 2, 1999
d. Avoidable Consequences
e. Assumption of Risk
 Japan Airlines v. Court of Appeals, GR No. 118664, August 7, 1998
 Calalas v. Court of Appeals, GR No. 122039, May 31, 2000
f. Doctrine of Last Clear Chance
 Philippine Rabit Bus Lines , Inc. v. IAC, et al., GR Nos. 66102-4, August 30, 1990
 Bustamante v. Court of Appeals, No. 89880, February 6, 1991
 Tiu v. Arriesgado, 437 SCRA 426
 Isaac v. AL Ammen Trasportation Co., Inc., GR No. L-9671, August 23, 1957
 Compania Maritima v. Court of Appeals, GR No. L-31379, August 29, 1988
 Cangco v. Manila Railroad Co., GR No. 12191, October 14, 1918
 Del Prado v. Manila Electric Co., GR No. 29462, March 7, 1929
 Philippine National Railways v. Court of Appeals, GR No. L-55347, October 4, 1985
12. Notice of Claim
a. Claim in Overland Transportation and Coastwise Shipping
 MCC Industrial Sales Corporation v. Ssyangyong Corporation, 536 SCRA 408
 Philippine American General Insurance Co., Inc. v. Sweetlines, Inc. et al, GR No. 87434,
August 5, 1992
 Government of the Philippine Islands v. Inchausti & Co., GR No. L – 6957, February 14, 1913
b. Notice of Claim in International Carriage of Goods by Sea
 Philippine American General Insurance Co., Inc. v. Sweetlines, Inc. et al, GR No. 87434,
August 5, 1992
 UCPB General Insurance Co., Inc. v. Aboitiz Shipping Corp., et al., GR No. 168433, February
10, 2009
 Philippine Charter Insurance Corporation v. Chemoil Lighterage Corporation, GR No. 136888,
June 29, 2005
 Southern Lines Inc. v. Court of Appeals, GR No. L-16629, January 31, 1962
 Roldan v. Ponzo & Co., GR No. L-11325, December 7, 1917
 EE Elser Inc. et al. v. Court of Appeals, et al., GR No. L-6517, November 29, 1954
 Lorenzo Shipping v. Court of Appeals, September 28, 1999
13. Prescription in Overland Transportation and Coastwise Shipping
i. Prescription in International Carriage of Goods
 Roldan v. Ponzo & Co., GR No. L-11325, December 7, 1917
 Asian Terminals, Inc. v. Philam Insurance Co., Inc., GR No. 181163, July 24, 2013
 Belgian Overseas Chartering and Shipping NV v. Philippine First Insurance Co., Inc.
GR No. 143133, June 5, 2002

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  Dole Philippines v. Maritime Co., 148 SCRA 118
 Ang v. Compania Maritima et al., GR No. L-30805, December 26, 1984
 Mitsui v. Court of Appeals, 287 SCRA 366
 Cua v. Wallem Philippines Shipping, Inc. GR No. 171337, July 11, 2012
ii. Prescription and Subrogation
 Fil Merchants v. Alejandro, 145 SCRA 42 (1986)
 Vector Shipping Corporation v. American Home Assurance Co., GR No. 159213, July
3, 2013
14. Notice of Claim and Prescription in Air Transportation
i. Rules under the Warsaw Convention
 Federal Express v. American Home Assurance, GR No. 150094, August 18, 2004
 PAL v. Savillo, July 4, 2008
15. Limiting Stipulations
 Lara vs. Valencia, 104 Phil. 65

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