carriage is by land, water or air (d) the carrying of passengers, goods or both is for compensation (e) the service is offered to the public without distinction.
Transportation defined. A contract of transportation is one whereby a certain person or association of persons obligate themselves to transport persons, things, or news from one place to another for a fixed price
Classification:
1. as to object: (1) things; (2) persons; (3) news 2. as to place of travel: (1) land; (2) water; (3) air Parties to contract of transportation:
(1) shipper or consignor.-- person to be transported; one who gives rise to the contract of transportation by agreeing to deliver the things or news to be transported, or to present his own person or those of other or others in the case of transportation of passengers
(2) Carrier or conductor. -- One who binds himself to transport persons, things, or news as the case may be; one employed in or engaged in the business of carrying goods for other for hire (3) Consignee. -- The party to whom the carrier is to deliver the things being transported; one to whom the carrier may lawfully make delivery in accordance with its contract of carriage (but the shipper and the consignee may be one person)
Common carriers vs. Private carriers:
Common Carrier Private Carrier
As to Availability Holds himself out for all people
indiscriminately
Contracts with particular individuals or groups only
As to require Diligence
Extraordinary Diligence Ordinary Diligence As to regulation
Subject to state regulation Not subject to state regulation Stipulation limiting liability
Parties may agree on limiting the carrier’s liability except when provided by law
Parties may limit the carrier’s liability, provided it is not contrary to morals or good customs
Prove extraordinary diligence and
Art.1734,NCC Caso forfuito, art. 1174 NCC
Presumption of Negligence There is a presumption of fault or
negligence No presumption of fault or Negligence
Governing law
Law on Common Carriers Law on obligations and contracts Test for a common carrier:
(1) He must be engaged in the business of carrying goods for others as a public employment, and must hold himself out as ready to engage in the transportation of goods for persons generally as a business, and not a casual occupation.
(2) He must undertake to carry goods of the kind to which his business is confined.
(3) He must undertake to carry by the methods by which his business is conducted, and over his established roads.
(4) The transportation must be for hire.
The true test is whether the given undertaking is a part of the business engaged in by the carrier which he has held out to the general public as his occupation rather than the quantity or extent of the business actually transacted, or the no. and character of the conveyances used in the employment (the test is therefore the character of the business actually carried on by the carrier.)
Case: an airplane owner is a common carrier where he undertakes for hire to carry all persons who apply for passage indiscriminately as long as there is room and no legal excuse for refusing; airlines engaged in the passenger service on regular schedules on definite routes, who solicit patronage of the traveling public, advertise schedules for routes, times of leaving and rates of fare, and make the usual stipulation as to baggage are common carriers
Characteristics of common carriers:
(1) The common carrier undertakes to carry for all people indifferently; he holds himself out as ready to engage in the transportation of goods for hire as a public employment and not as a casual occupation, and he undertakes to carry for all persons indifferently, within the limits of his capacity and the sphere of the business required of him, so that he is bound to serve all who apply and is liable for refusal, without sufficient reason, to do so
(2) The common carrier cannot lawfully decline to accept a particular class of goods for carriage to the prejudice of the traffic in those goods
Exception: for some sufficient reason, where the discrimination in such goods is reasonable and necessary (substantial grounds)
(3) No monopoly is favored - the Commission has the power to say what a reasonable compensation to the utility and to make reasonable rules and regulations for the convenience of the traveling public and to enforce them
(4) Public convenience - for the best interests of the public. Meaning of Public use.
It is not confined to privileged individuals, but is open to the indefinite public; there must be a right which the law compels the owner to give to the general public. Public use is not synonymous with public interest. The true criterion is whether the public may enjoy it by right or only by permission
The law prohibits unreasonable discrimination by common carriers.
The law requires common carriers to carry for all persons, either passengers or property, for exactly the same charge for a like or contemporaneous service in the transportation of like kind of traffic under substantially similar circumstances or conditions. The law prohibits common carriers (CC) from subjecting any person, etc. or locality, or any kind of traffic, to any undue or unreasonable prejudice or discrimination whatsoever.
Exception: When the actual cost of handling and transporting is different, then different rates may be charged
quality may be exactly the same, and yet not be alike, so far as the cost of transportation is concerned
(2) Shipments may be alike although composed of different classes of merchandise - difference in the charge for handling and transporting may only be made when the difference is based upon actual cost.
Determination of justifiable refusal:
This involves a consideration of the following:
(1) Suitability of the vessels of the company for the transportation of such products; (2) Reasonable possibility of danger or disaster, resulting from their transportation in the form and under the conditions in which they are offered for carriage;
(3) The general nature of the business done by the carrier;
(4) All the attendant circumstances which might affect the question of the reasonable necessity for the refusal by the carrier to undertake the transportation of this class of merchandise
Case: The mere fact that the carriage of dynamites may lead to destructive explosions is not sufficient to justify refusal if it can be proven that in the condition in which it is offered for carriage there is no real danger to the carrier nor reasonable ground to fear that the vessel and those on board will be exposed to unnecessary or unreasonable risks.
a. Diligence Required of Common Carriers
Common carriers, from the nature of their business and for reasons of public policy, are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them, according to all the circumstances of each case.
The requirement is such because of the nature of the business and by reason of public policy.
The failure to exercise the required degree of diligence is a breach of the contract. If loss, destruction or deterioration of the goods occurs or a death or physical injury is suffered by a passenger, there is a presumption of negligence that arises.
Reasons for requiring extra-ordinary diligence.
The nature of the business of common carriers and the exigencies of public policy demand that they observe extra-ordinary diligence; the business of CC is impressed with a special public duty and therefore subject to control and regulation by the state. The public must of necessity rely on the care and skill of CC in the vigilance over the goods and safety of the passengers. b. Liabilities of Common Carriers
The common carrier is at all times, required to observe extraordinary diligence with respect to transport of goods.
1. To bring passengers safely to his place of destination. He is obliged to carry passengers safely as far as human care and foresight can provide, using the utmost diligence of a very cautious person with due regard for all circumstances. In case of death or injury, the common carriers are presumed to have been at fault or negligent in transporting the passengers unless they prove that they observed extraordinary diligence. 2. To transport the goods/ cargoes safely to the point of destination if there is loss or damage to the goods/cargoes, immediately a presumption of negligence arises that the loss/ damage to the goods/ cargoes was due to the negligence of the common carrier. The shipper may only prove that the goods arrived in a damaged condition or that they did not arrive at all.
LOADSTAR SHIPPING CO., INC VS. PIONEER ASIA INSURANCE CORP. Jan 24, 2006
A common carrier is required to observe extraordinary diligence in the vigilance over the goods it transports.