Transportation and maritime law



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Parties to the contract :
1. shipper - 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 or one employed in or engaged in the business of carrying goods for others for hire


Persons or corporations who undertake to transport or convey goods, property, or persons from one place to another, gratuitously or for hire, and are classified as private or special carriers and common or public carriers
C. Regulation of the Transportation Industry
* The Department of Transportation and Communications
EO 125, Sec. 4. Mandate. The DOTC shall be the primary policy, planning, programming, coordinating, implementing, regulating, and administrative entity of the Executive Branch of the govt. in the promotion, devt. and regulation of dependable and coordinated networks of transportation and communication systems, as well as in the fast, safe, efficient, and reliable postal, transportation and communication services.

To accomplish such mandate, the Dept. shall have the ff. objectives:

(a) promote the devt. of dependable and coordinated networks of transportation and communication systems;

(b) guide govt. and private investments in the devt. of the country's inter-modal transportation and communication system in a most practical, expeditious, and orderly fashion for maximum safety, service and cost effectiveness;

(c) impose appropriate measures so that technical, economic and other conditions for the continuing economic viability of the transportation and communication entities are not jeopardized and do not encourage inefficiency and distortion of traffic patronage;

(d) develop an integrated plan for a nationwide transmission system in accordance with national and intl. telecommunications service reqts. including, among others, radio and television broadcast relaying leased channel services and data transmission;

(e) guide govt. and private investments in the establishment, operation and maintenance of an intl. switching system for incoming and outgoing telecommunication services;

(f) encourage the devt. of a domestic telecommunications industry in coordination with the concerned entities particularly, the manufacture of communications/electronics equipment and components to complement and support, as much as possible, the expansion, development, operation and maintenance of the nationwide telecommunication network;

(g) Provide for a safe, reliable and efficient postal system for the country.

EO 125-A, Sec. 5. To accomplish its mandate, the Dept. shall have the ff. powers and functions:

(a) formulate and recommend national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation and communications systems at the national, regional and local levels; (b) establish and administer comprehensive and integrated programs for transportation and communications, xxx call on any agency, corp., or organization xxx to participate and assist in the preparation and implementation of such program;

(c) assess, review and provide direction to xxx research and devt. programs of the govt xxx;

(d) administer and enforce all laws xxx in the field of transportation and communication;

(e) coordinate with the DPWH in the design, location, devt, rehabilitation, improvement, etc. of all infrastructure projects and facilities of the Dept. xxx

(f) establish, operate and maintain a nationwide postal system xxx;

(g) issue certificates of public convenience for the operation of public land and rail transportation utilities and services;

(h) accredit foreign aircraft and manufactures xxx;

(i) establish and prescribe rules and regulations for identification of routes, zones and/or areas of operation of particular operator of public land services;

(j) establish and prescribe rules xxx for the establishment, operation and maintenance of such telecommunication facilities in areas not adequately served by the private sector xxx;

(k) establish and prescribe rules xxx operation and maintenance of a nationwide postal system xxx;

(l) establish and prescribe rules xxx issuance of CPCs for public land transportation utilities, such as motor vehicles, trimobiles, and railways;

(m) establish and prescribe rules xxx inspection and registration of air and land transportation facilities, such as motor vehicles, trimobiles, and aircrafts;

(n) establish and prescribe rules xxx issuance of licenses xxx;

(o) establish and prescribe rules xxx enforcement of laws governing transportation xxx;

(p) determine, fix and/or prescribe charges and/or rates pertinent to the operation of public air and land transportation utility facilities and services xxx;

(q) establish and prescribe rules xxx accreditation of driving schools;

(r) administer and operate the Civil Aviation Training Center xxx;

(s) perform such other powers and functions as it may be prescribed by law, or as may be necessary, incidental, or proper to its mandate, or as may be assigned from time to time by the President.
(a) Air
(i) Air Transportation Office
EO 125, as amended by EO 125-A

Sec. 10. Assistant Secretaries and Service Chiefs.

xxx

h) Office of the Assistant Secretary for Air Transportation

Sec. 11. xxx The present Airport Offices of the Bureau of Air Transportation are hereby abolished and their functions are transferred to the Dept. Airport Offices. xxx

Sec. 13. xxx

d) The Civil Aeronautics Board is hereby transferred from the Dept. of Tourism to the Dept. as an attached agency xxx. The Secretary of Transportation and Communications or his designated representative shall be the Chairman of the Board xxx

Sec. 25, RA 776. The Civil Aeronautics Administration shall be under the administrative supervision and control of the Dept. of Commerce and Industry (now the DOTC) xxx
(ii) Civil Aeronautics Board
RA 776, as amended
Section 5. The Civil Aeronautics Board shall be composed of the Secretary of Commerce and Industry (now DOTC) as Chairman, the CAB Administrator, the Commanding Officer of the Phil. Air Force, and 2 others to be appointed by the President xxx
Section 10 (A) Except as otherwise provided herein, the Board shall have the power to regulate the economic aspect of air transportation, and shall have the general supervision and regulation of, and jurisdiction and control over, air carriers, as well as their property, property rights, equipment, facilities, and franchise, in so far as may be necessary for the purpose of carrying out the provisions of this Act.
Section 10 (C) Powers and Duties of the CAB

1. issue, deny, amend, revise, alter, modify, cancel, suspend, or revoke xxx any temporary operating permit or CPCN xxx

2. fix and determine reasonable individual, joint or special rates, charges, or fares which an air carrier may demand, collect or receive for any service in connection with air commerce xxx

3. authorize charters whether domestic or intl. and special air services or flights xxx;

4. approve or disapprove increase of capital, sale of equipment of an air carrier engaged in air commerce, consolidation, merger, purchase, lease, operating contract, or acquisition and control between domestic air carriers xxx

5. inquire into the mgmt. of the business of any air carrier xxx;

6. require annual, monthly, periodical and special reports from any carrier xxx;

7. prescribe the forms of any and all accounts, records, and memoranda of the movement of traffic, as well as of the receipt and expenditures of money and the length of time such accounts, records, and memoranda shall be preserved xxx;

8. require each officer and director of any air carrier to transmit a report describing the shares of stock or other interest held by such air carrier with any person engaged in any phase of aeronautics, and the holding of the stock in, and control of, other persons engaged in any phase of aeronautics.
Section 11. A CPCN is a permit issued by the Board authorizing a person to engage in air commerce and/or air transportation, foreign and/or domestic.

Any permit may be altered, amended, modified, suspended, canceled and revoked by the Board xxx whenever the Board finds such action to be in the public interest.

There shall be attached to the exercise of the privileges xxx such reasonable terms, conditions, or limitations as, in the judgment of the Board, the public interest may require.

xxx

Section 12. Except as otherwise provided in the Constitution and existing treaty or treaties, a permit authorizing a person to engage in domestic air commerce and/or air transportation shall be issued only to citizens of the Philippines.

(b) Land
(i) Land Transportation Office

EO 125-A
Section 9. Assistant Secretaries and Service Chiefs

xxx

e) Office of the Assistant Secretary for Land Transportation
Section 11. xxx The present Regional Offices of the Land Transportation Commission are hereby abolished and their functions are transferred to the respective Department Regional offices for Land Transportation. xxx
Section 13 (a) The Land Transportation Commission is hereby abolished and its staff functions are transferred to the service offices of the Dept. Proper and line functions are transferred to the Dept. Regional Offices for Land Transportation as provided in Section 11 herein. xxx The quasi-judicial powers and functions of the Commission are transferred to the Dept. The corresponding position structure and staffing pattern shall be approved and prescribed by the Secretary xxx.
Administrative Code of 1987, Title XV
Sec. 9. The Department shall have the following line offices :

(1) The Office of the Assistant Secretary for Land Transportation.

xxx

(ii) Land Transportation Franchising and Regulatory Board


EO 202
Sec.1. There is hereby created in the DOTC, the Land Transportation Franchising and Regulatory Board.
Sec.2. The Board shall be composed of a Chairman and 2 members with the same rank, salary and privileges of an Assistant Secretary, xxx
Sec.4. The Secretary of Transportation and Communications, through his duly designated Undersecretary, shall exercise administrative supervision and control over the LTFRB.
Sec.5. Powers and functions:

a. prescribe and regulate routes of service, xxx zones or areas of operation of public land transportation services provided by motorized vehicles xxx;

b. issue, amend, revise, suspend or cancel CPCs or permits authorizing the operation of public land transportation services provided by motorized vehicles xxx;

c. determine, prescribe, approve and periodically review and adjust reasonable fares, rates and other related charges, relative to the operation of public land transportation services provided by motorized vehicles;

d. issue preliminary or permanent injunction xxx;

e. punish for contempt of the Board, both direct and indirect xxx;

f. issue subpoena and subpoena duces tecum and to summon witnesses to appear in any proceedings of the Board, to administer oaths and affirmations;

g. conduct investigations and hearings of complaints for violation of the public service laws on land transportation and of the Board's rules and regulations xxx;

h. to review motu proprio the decisions, actions of the Regional Franchising and Regulatory Office herein created;

i. promulgate rules and regulations governing proceedings before the Board and the Regional Franchising and Regulatory Office xxx;

j. fix, impose, and collect, and periodically review and adjust reasonable fees and other related charges for services rendered;

k. formulate, promulgate, administer, implement and enforce rules and regulations on land transportation public utilities, standards of measurements and/or design, and rules and regulations requiring operators of any public land transportation service to equip, install and provide in their utilities and in their stations such devices, eqpt. facilities and operating procedures and techniques as may promote safety, protection, comfort and convenience to persons and property in their charges as well as the safety of persons and property within their areas of operations;

l. coordinate and cooperate with other govt. agencies and entities xxx;

m. perform such other functions and duties as may be provided by law, or as may be necessary, or proper or incidental to the purposes and objectives of this Executive Order.
Sec.6. The Board xxx shall sit and render its decision en banc; xxx concurrence and signature of at least 2 members xxx

The decision shall be appealable to the Secretary within 30 days from receipt of the decision; Provided, that the Secretary may motu proprio review any decision or action of the Board before the same becomes final.
Sec.7. There shall be a Regional Franchising and Regulatory Office in each of the administrative regions of the country which shall be headed by a Board Regional Manager having the rank, salary and privileges of a Dept. Assistant Regional Director. The Regional Franchising and Regulatory Offices shall hear and decide uncontested applications/petitions for routes, within their respective administrative regions: Provided, that applications/petitions for routes extending their respective territorial jurisdictions shall be heard and decided by the Board.

Administrative Code, Title XV


Sec. 15. The quasi-judicial powers and functions with respect to land transportation shall be exercised through the Land Transportation and Regulatory Board.
Sec. 16. The Board shall be composed of a Chairman and 2 members with the rank, salary and privileges of an Assistant Secretary, all of whom shall be appointed by the President upon the recommendation of the Secretary of Transportation and Communications xxx
Sec. 17. The Board shall have an Executive Director who shall also be appointed by the President xxx. He shall have the rank, salary and privileges of a Dept. Service Chief. He shall assist the Board in the performance of its powers and functions.

The Board shall be supported by the Technical Evaluation Division, Legal Division, Management Information Division, Administrative Division and Finance Division.
Sec. 18. The Secretary of Transportation and Communications shall exercise administrative supervision and control over the Board.

Sec. 19. Powers and functions of the Board:

1. prescribe and regulate routes xxx;

2. issue, amend, revise, suspend, or cancel CPCs or permits, xxx;

3. determine, prescribe, approve and periodically review and adjust reasonable fares xxx;

4. issue injunctions xxx;

5. punish for contempt of the Board xxx;

6. issue subpoena and subpoena duces tecum and to summon witnesses xxx; 7. conduct investigations and hearings of complaints for violation of the public service laws on land transportation xxx;

8. review motu proprio the decisions, actions of the Regional Franchising and Regulatory Offices xxx;

9. promulgate rules and regulations governing proceedings before the Board and the Regional Franchising and Regulatory Office xxx;

10. fix, impose and collect, and periodically review and adjust reasonable fees, and other related charges for services rendered;

11. formulate, promulgate, administer, implement and enforce rules and regulations on land transportation xxx;

12. coordinate and cooperate with other govt. agencies and entities concerned with any aspect involving public land transportation services xxx;

13. perform such other functions and duties as may be provided by law, or as may be necessary, or proper or incidental to the purposes and objectives of the Dept.
Sec. 20. The Board shall xxx sit and decide en banc; concurrence and signature of at least 2 members; decision shall be appealable to the Secretary within 30 days from receipt of the decision; the Secretary may motu proprio review any decision or action of the Board before it becomes final.
Sec. 21. Regional Franchising and Regulatory Offices - hear and decide uncontested applications/ petitions for routes xxx;
Sec. 22. decisions of the Regional Franchising and Regulatory Offices shall be appealable to the Board within 30 days from receipt of the decision.

(c) Water


(i) Maritime Industry Authority
EO 125, Sec. 14 as amended by EO 125-A, Sec. 3
The Maritime Industry Authority is hereby retained and shall have the ff. functions:

a. develop and formulate plans, policies, projects xxx geared toward the promotion and devt. of the maritime industry, the growth and effective regulation of shipping enterprises, and for the national security objectives of the country;

b. establish, prescribe and regulate routes, zones and/or areas of operation of particular operators of public water services;

c. issue CPCs for the operation of domestic and overseas water carriers;

d. register vessels as well as issue certificates, licenses or document necessary or incident thereto;

e. undertake the safety regulatory functions pertaining to vessel construction and operation including the determination or manning levels and issuance of certificates of competency to seamen;

f. enforce laws, prescribe and enforce rules and regulations, including penalties for violations thereof, governing water transportation and the Phil. merchant marine xxx;

g. undertake the issuance of licenses to qualified seamen and harbor, bay and river pilots;

h. determine, fix, prescribe charges/rates pertinent to the operation of public water transport utilities xxx;

i. accredit marine surveyors and maritime enterprises engaged in shipbuilding, ship repair xxx;

j. issue and register the continuous discharge book of Filipino seamen;

k. establish and prescribe rules and regulations, standards and procedures for the efficient and effective discharge of the above functions;

l. perform such other functions as may now or hereafter be provided by law.
II. Common Carriers
A. In General
1. Definitions; essential elements

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

Aguedo F. Agbayani, COMMERCIAL LAWS OF THE PHILIPPINES, vol. 4, 1989 ed. (hereinafter 4 Agbayani)



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)
Freight defined.-- The terms has been defined as: (1) the price or compensation paid for the transportation of goods by a carrier, at sea, from port to port. But the term is also used to denote (2) the hire paid for the carriage of goods on land from place to place, or on inland streams or lakes. The name is also applied to (3) the goods or merchandise transported at sea, on land, or inland streams or lakes. Thus the term is used in 2 senses: to designate the price for the carriage, also called freightage, or to designate the goods carried.
Contracts through transportation agents.-- A contract of transportation is not changed, altered or affected by the mere fact that the obligor avails of other parties to effect the transportation agreed upon, as in the case of transportation agents.
Carriers defined.-- Persons or corporations who undertake to transport or convey goods, property or persons, from one place to another, gratuitously or for hire, and are classified as private or special carriers, and common or public carriers
Private carriers defined.-- Those who transport or undertake to transport in a particular instance for hire or reward
Common carriers vs Private carriers:
(1) the common carrier holds (1) the private carrier agrees

himself out in common, that is, in some special case with some

to all persons who choose to em- private individual to carry

ploy him, as ready to carry for for hire

hire; no one can be a common

carrier unless he has held himself

out to the public as a carrier in

such a manner as to render him

liable to an action if he should

refuse to carry for anyone who

wished to employ him
(2) a common carrier is bound to (2) a private carrier is not

carry all who offer such goods as bound to carry for any reason,

it is accustomed to carry and unless it enter into a special

tender reasonable compensation agreement to do so

for carrying them
(3) a common carrier is a public service (3) a private carrier does not

and is therefore subject to regulation hold itself out as engaged in

the business for the public,

and is therefore not subject

to regulation as a common carrier


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

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