COMMON CARRIER DOCTRINE OF PROXIMATE CAUSE

- Association, corp, firm or person engaged in the business of - An action that produce foreseable effect
transporting or carrying goods or passengers by land, water
-Applicable only to torts and not breach of contract
or air for compensation for the public without distinct and for hire

- Extraordinary diligence
CONTRIBUTORY NEGLIGENCE
- Presumption of fault/ negligence
- Partly his own fault and partly by another
- Law on Common Carriers
- Doctrine of clean hands not applicable
- Subject to state regulations
- Deals merely on liabilities which shall be in equal

Characteristics
DEFENSE OF COMMON CARRIER
1. Cannot lawfully decline to the prejudice of traffic
1. Force majeure, act of god, fortuitous event
2. Liable for refusal without sufficient cause
2. Act of public enemy
3. For public convenience
3. Act of public authority or order

- must have the power to issue order

PRIVATE CARRIER
4. Negligence of shipper or owner
- Not in the business of carrying as public employment
5. Character of goods/ Defects in packaging
- Parties are free to stipulate their obligation and liabilities
provided not contrary to law, morals, public policy - Provided such is the proximate cause of the loss, not negligent
that will incur delay, exercise diligence to minimize loss
- No presumption of fault/ negligence
- List is exclusive
- Ordinary diligence

- Law on ObliCon
REQ OF CASO FURTUITO TO BE EXEMPTED FROM BREACH OF
OBLIGATION
TEST WHETHER CARRIER IS COMMON CARRIER
1. Independent of the ill of debtor
1. Engaged in the business of carrying
2. Unforseen and unavoidable
2. Business must be confined
3. Free from any participation
3. Business conducted over established roads
If the goods are lost, destroyed or deteriorated by causes other
4. For hire than mentioned, the CC must present evidence that they are not
negligence.

EXTRAORDINARY DILIGENCE
CERTIFICATE OF PUBLIC CONVENIENCE
- Exercise of utmost foresight and greatest skill
- Mere authority issued for operation of pubic service

- Not a requisite for inquiring liability, to exempt carrier for such

ORDINARY DILIGENCE
reason would be offensive to public policy
- Degree of care exercise by common prudence

DURATION OF LIABILITY OF COMMON CARRIER STARTS FROM

PRESUMPTION OF NEGLIGECE ATTACHE WHEN
- Moment the goods is unconditionally placed in the hands of
1. Goods are damage when in transit common carrier until such is delivered(actually/ constructively)
to the consignee or person authorized to receive
2. Passenger not safely carried
- Liable even if stored in the warehouse
REDUCTION OF DEGREE OF DILIGENCE TO ORDINARY DILIGENCE OF 1. Consignee been advised of the arrival of goods
COMMON CARRIER
2. Has reasonable opportunity to remove goods/ dispose
- Allowed; provided:

1. In writing
NO EXTRAORDINARY DILIGENCE BY CARRIER COULD HAVE BEEN
2. Signed by the shipper/ owner PREVENTED THE LOSS OF GOODS AFTER HE HAS NO MORE CONTROL
BECAUSE OF GOV’T
3. Supported with valuable consideration other than the fee

4. Reasonable, not contrary to law, morals, public policy

1739. COMMON CARRIER MAYBE EXEMPTED FROM RESPONSIBILITY
if:
WHAT CONSTITUTE AS PUBLIC UTILITY?
1. Due to natural disaster (exemption list)
- Their services/ use for the public and not ownership. It is
2. Due diligence to prevent loss
independent from ownership of facilities
3. Not negligent that would incur delay

Relation between carrier and passenger is determinative of

degree of care required by latter’s obligation 1740. IF COMMON CARRIER INCURS DELAY, EVEN IF THERE IS
NATURAL DISATER, STILL LIABLE

1735. PRESUMPTION OF FAULT/NEGLIGENCE OF COMMON CARRIER

Delay when
- In case goods are lost, destroyed or deteriorated
- Judicial/ extrajudicial demand by for fulfillment of obligation
- Unless they proved that they exercised extraordinary diligence

Demand not needed if

Mere proof of delivery of goods in good order to a carrier and
subsequent arrival at a place of destination in bad order is prima facie 1. Obligation/ Law expressly declares
case against common carrier
2. Time stipulated

1736. WHEN LIABILITY OF COMMON CARRIER STARTS

No delay in reciprocal obligation
- Good unconditionally place in the hands and received of
common carrier until delivery to consignee
1741. CONTRIBUTORY NEGLIGENCE

-When shipper/owner merely contributed to the loss, proximate

Arrastre
cause being the negligence of the common carrier, the laltter
- Responsible until the cargo is delivered to consignee shall be liable for damages which must be equitably reduced

- Extraordinary diligence - Contributory negligence being mitigating circumstance on the

part of common carrier

Stevedoring
1742. FAULTY PACKAGING/ CHARACTER OF GOODS
- Liability until only loaing and stowing of cargo in the vessel
- common carrier to exercise due diligence to lessen loss

1737. COMMON CARRIER TO OBSERVE EXTRAORDINARY DILIGENCE

REMAINS EVEN IF GOOD ARE TEMPORARILY UNLOADED A statement in the bill of ladding that the shipment was in
apparent good condition is sufficient to sustain adsence of defects
- Unless shipper right of stoppage in transitu (to take possession
of the goods in transit because debtor became insolvent)

1743. ORDER OF PUBLIC AUTHORITY FOR GOODS TO BE DESTROYED

1738. EXTRAORDINARY DILIGENCE CONTINUES EVEN IF STORED IN - Common carrier not liable provided had the power to issue
WAREHOUSE unless: order
 - Evindentiary in nature (common carrier must prove this)

1753. COMMON CARRIER TO CARRY PASSENGERS SAFELY WITH

UTMOST DILIGENCE FOR ALL CIRCUMSTANCES
1744. VALID STIPULATION BETWEEN COMMON CARRIER AND
SHIPPER/OWNER TO LIMIT LIABILITY OF CC FOR LOSS ETC, LESS - Once a passenger in the course of travel is injured or does not
THAN EXTRAORDINARY DILIGENCE reach his destination safely, carrier and driver are presumed at
fault

1745. VOID STIPULATION OF COMMON CARRIER

Stepping and standing on the platform of the bus is already
COMMON CARRIER STILL RESPONSIBLE FOR ACTS OF STRANGERS
considered a passenger and entitled to all rights and protection as
LIKE THEIVES/ ROBBER
long as within its premise, provided reasonable period of time to leave
- Except acted with grave and irresistible force, violence.
However this must be prove with sufficient evidence and mere
affidavit is not sufficient Carrier is liable to its passengers for damages caused by
mechanical defects

1746. AGREEMENT LIMITING COMMON CARRIERS LIABILITY MAY BE

ANNULLED BY SHIPPER/OWNER IF: Contract of air carriage imbued with public interest

- Common carrier refuse to carry goods

Roundtrip plane ticket is a complete contract between carrier

and passenger
1747. COMMON CARRIER DELAYS WITHOUT JUST CAUSE IN
TRANSPORTING GOODS or CHANGE THE STIPULATED or USUAL
ROUTE
1754. DEATH/INJURIES TO PASSENGERS
- even if there is stipulation to limit liability, common carrier still
- Common carrier is presumed at fault, negligent unless proven
liable because of breach of contract
otherwise

1748. AGREEMENT LIMITING LIABILITY OF COMMON CARRIER FOR

Duty of common carrier to overcome the presumption of
DELAY IN CASE OF STRIKE
negligence

1749. STIPULATION THAT COMMON CARRIER LIABILITY IS LIMITED

1755. RESPONSIBILTY OF COMMON CARRIER FOR SAFETY OF
TO THE VALUE OF GOODS APPERING IN THE BILL OF LADDING IS
PASSENGER CANNOT BE DISPENSED/ LESSENED BY STIPULATION BY:
BINDING
1. Posting of notices
- Unless shipper/Owner declares greater value
2. Statement in tickets

1750. CONTRCT FIXING SUM THAT MAYBE RECOVERED BY

SHIPPER/OWNER FOR LOSS etc OF GOODS IS VALID 1756. GRATUITOUS CARYING OF PASSENGER AND STIPULATION
LIMITING COMMON CARRIER LIABILITY FOR NEGLIGENCE IS VALID
- Provided freely agreed upon
- but not wilful act or gross negligence

- reduction of fare does not justify

1751. EVEN IF THERE IS AN AGREEMENT LIMITING LIABILTY OF
COMMON CARRIER IN VIGILANCE OF GOODS, STILL PRESUMED
NEGLIGENT INCASE THERE IS LOSS, deterioration
Gross Negligence

- Voluntary disregard of reasonable care which would likely to

1752. LAW OF THE COUNTRY TO WHICH GOODS ARE TO BE cause forseable injury
TRANSPORTED SHAL GOVERN LIABILITY OF COMMON CARRIER

- even if goods never reach its destination

Wilfull Negligence
- Not applicable if goods was never transported
- violation of legal duty with respect to rights
1757. COMMON CARRIER LIABLE FOR DEATH/ INJURIES TO
PASENGERS THRU NEGLIGENCE OR WILFULL ACTS OF ITS EMPLOYEES
- even if employees acted beyond the scope of their authority
1758. PASSENGERS TO OBSERVE DILIGENCE OF A GOOD FATHER
- To avoid injury to himself
1759. CONTRIBUTORY NEGLIGENCE OF PASSENGERS. IF PROXIMATE
CAUSE IS DUE TO NEGLIGENCE OF COMMON CARRIER
- Does not bar for recovery of damages for his death/ injury
- Damages shall be equitably reduced
1760. COMON CARRIER LIABLE FOR INJURIES SUFFRED BY
PASSENGER ON ACCOUNTS OF WILFULL ACTS OR NEGLIGENCE OF
OTHER PASSENGER/ STRANGERS
- Common carrier employee could have prevented it or stopped
the act thru exercise of diligence of good father
INSTANCE WHEN COMMON CARRIER IS LIABLE FOR DEATH/INJURY
OF PASSENGER
1. Negligence of Es
2. Negligence of passenger if thru ordinary diligence Es could
prevented it
A tort committed by a stranger which causes injury to the
passenger does not accord the passenger action against carrier
(subject to the provision above)
A common carrier can be held liable for failing to prevent a
hijacking by frisking passengers and inspecting their bags
Res Ipsa Loquitor
- Action speaks for itself
- not applicable in breach of contract
Doctrine of Last Clear Chance
- Last opportunity to avoid accident
- Not applicable to contract of carriage
DAMAGES
1. MORAL DAMAGES
- Awarded only to enable the injured that will alleviate the
moral suffering he has by reason of defendant culpable action
- Assessment discretion of court
- Factual basis must be alleged except crime cases
- Proof that defendant caused physical suffering
- Prove existence of BF by clear and convincing evidence not
enough he suffered sleepless nights, mental anguish
Moral damages may be recovered in the ff:
1. Crim Offense resulting in physical injury
2. Quasidelict causing physical injuries
GR: No moral damages on breach of contract
Ex: Mishap results to death, Carrier guilty of fraud and BF
2.EXEMPLARY DAMAGES
- Intent to serve as deterrent to serious wrong doing
- Crime was committed with 1 or more aggravating circumstance
or quasidelict was committed with gross negligence or act
accompanied with BF
- Imposed by way of example for public good
3.ACTUAL/ COMPENSATORY
- Adequate compensation for loss suffered; profits which
obliged failed to obtain
- Claimant must produce competent proof (receipt ) to
justify award
- Cannot be presumed
3.NOMINAL DAMAGES
- Proof that legal right has been violated
- Usually awarded in the absence of proof of actual
damages
- Cannot co-exist with Actual damages
3 KINDS OF FAULT/ NEGLIGENCE
1. Culpa Contractual
 - Breach of contract 2. Petition of interested party

- Carrier is primary liable; Driver merely an agent hence, action - after due hearing
filed against owner of carrier because contract is between carier-
passenger
Amnt recoverable is not the loss of entire earning but portion of
- CarrierOwner no defense of due diligence in selecting and
earnings
supervision of employees

- Preponderance of evidence
In quasidelict, exemplary damages maybe awarded if the party at
fault acted with gross negligence
2. Culpa Aquilana (Tort)

- Carrier and driver are solidarily liable as joint tortfeasor

Moral and exemplary damage is not due in case where passenger
- Defense of due diligence in selection and supervision of E’s is is guilty of contributory negligence (Ph Nat’l Trailway case )
available

- passenger burden of proving negligence

Release Claims executed by injured party discharging the
insurance and transportation company from any liability is valid

3. Culpa Criminal

- Driver is primary liable WARSAW CONVENTION

- Subsidiary liability of CarrierOwner if driver is insolvent; it can
be obtained in same crimcase (execution) or file separate civil
action
- Proof beyond reasonable doubt
- The CarrierOwner cannot deny due process, what he can do is
to give the driver a good defense counsel bcus defending the
interest of the driver is also defending his interest
- Applies to international transportation of person, baggage or
goods performed by any aircraft for hire
- Balance the interest of passengers in seeking recovery for
personal injuries and interest of air carriage seeking to limit
potential liability
- 2 yrs prescription
a. Date of arrival at destination

b. Date of expected arrival

In all cases, the carrier may ask reimbursement from driver if it
c. Date on which transportation stopped
made to pay damages
- 2 yrs not applicable if airline employed delaying tactics

Damages for death caused by crime of QUASI-DELICT

A claim covered by Warsaw convention can no longer be
1. Defendant liable for loss earning capacity of the deceased
recovered under local law if statute of limitation of 2 yrs already lapse
paid to the heirs

2. If deceased obliged to give support- give support not

exceeding 5 yrs Warsaw convention does not exclusively regulate the
relationship between passenger and carrier on an international flight
3. Demand for moral damages maybe had

Humiliation suffered by passenger in the hands of airlines employee

Computation of Damages
- Covered by civil cod e
1. Life expectancy of victim (2/3x80 and age of decease)
- prescription of 4 yrs
2. Earning capacity (net eaning and not gross)

Applocability of WARSAW CONVENTION

1. Air transportation
1765. LTFRB MAY CANEL THE CERT OF PUBLIC CONVENIENCE
2. Int’l transportation- place of departure and destination are
1. Own motion or
situated either
 3. Carriage of passengers, baggage, or goods

When WC Inapplicable

1. Public policy is contradicted

2. Req under the convention not complied with

Jurisdiction

1. - option of the plaintiff to file in

2. Court of domicile of carrier

3. Court of principal business

4. Court where it has a place of business thru which contract has

been made

5. Court of place of destination

6. Place of residence of passenger (MC 2016 only)

Rule in Successive Carriers

GR: Filed only agnst the carrier which accident or delay occured

Ex: Agreement/ contract whereby the 1st carrier assumed liability

for whole journey

-Carriers are joint and severally liable

Action for damages

1. Notice of claim

- Condition sine qua non except fraud

Agreement relieving the carrier from liability or fixing lower limit is

null and void