Tranportation Law.

Contracts of transportation, whether by land, sea or air, if within the Philippines or if

the transportation of goods be from a foreign country to the Philippines shall be
governed by the following laws, arranged by order of application:
1. Provisions of the New Civil Code on Common Carriers;
2. Code of Commerce; and
3. Special laws such as Carriage of Goods by the Sea (COGSA); Salvage Law; Public
Service Act; Land Transportation and Traffic Code; Tariff and Customs Code; and
Civil Aeronautics Act (NCC, Art. 1735 and 1766; American President Lines, Ltd. vs.
Klepper, GR No. L-15671, November 29, 1960).

NOTE: In the case of international carriage in Air Transportation, Warsaw

Convention applies (ibid).

If the goods are to be transported from Philippines to foreign country, the law of the
latter country shall govern the transportation contract (ibid).

Art 12. National Economy and Patrimony

Section 11. No franchise, certificate, or any other form of authorization for the
operation of a public utility shall be granted except to citizens of the Philippines or
to corporations or associations organized under the laws of the Philippines, at least
sixty per centum of whose capital is owned by such citizens; nor shall such franchise,
certificate, or authorization be exclusive in character or for a longer period than fifty
years. Neither shall any such franchise or right be granted except under the
condition that it shall be subject to amendment, alteration, or repeal by the Congress
when the common good so requires. The State shall encourage equity participation
in public utilities by the general public. The participation of foreign investors in the
governing body of any public utility enterprise shall be limited to their
proportionate share in its capital, and all the executive and managing officers of such
corporation or association must be citizens of the Philippines.cralaw

Common Carriers

Art. 1732. Common Carriers are persons, corporations, firms or association engaged
in the business of carrying or transporting passenger or goods or both, by land,
water or air, for compensation, offering their services to the public.

Requisites for an entity to be classified as a common carrier (PBL-CP)

1. Must be a Person, corporation, firm or association
2. Must be engaged in the Business of carrying or transporting passengers or goods
or both
3. The carriage or transport must either be by Land, water or air
4. The service is for a Fee or Compensation
5. The service is offered to the Public (Art. 1732, NCC).
First Phil. Industrial Corp vs CA

A pipeline operator who carries oil and other petroleum products through pipes/
pipelines is a common carrier. The law does not distinguish as to the means by
which transportation is carried out, as long as it is by land, water or air. Neither does
the law require that transportation be through a motor vehicle (J. Dimaampao,
supra, pg. 125, citing First Phil. Industrial Pipeline, supra).

4 test on determining a party is a common carrier of goods:

1. He must engaged in the business of carrying goods for others a s public
employment;
2. He must undertake to carry goods of the kind to which his business is confined;
3. he must undertake to carry by the method by which his business is conducted and
over his established roads; and
4. the transportation must be for hire

PrivatecarrierAcarrierwhichdoesnotqualifyundertherequisitesofacommoncarrierisdeemeda
privatecarrier(NationalSteelCorporationvCA,G.R.No.112287,December12,1997).

Chapter II Vigilance over the Goods

Art 1734 Common Carriers are responsible for the loss,, destruction, and
deterioration of the goods, unless the same is due to any of the following cases only:
(FESPO)
1. Flood, storm, earthquake , lightning, or other natural disaster or calamity;
2. act of the public enemy in war, whether international or civil;
3. act or omission of the shipper or owner of the goods;
4. the character of the goods or defects in the packing or in the containers; and
5. order or act of competent public authority.

Requisites for fortuitous event or act of God: (BUIF)

1. the cause of the breach of the obligation is independent of the will of the debtor;
2. the event must be unforeseen or unavoidable;
3. the event must be such as to render it impossible for the debtor to fulfill his
obligation in a normal manner;
4. the debtor must be free from participation in, or aggravation of the injury to the
creditor.