Transportation Codal Provisions

1. Concept/Element of Common Carrier observed extraordinary diligence as required in article

1733.
ARTICLE 1732. Common carriers are persons,
corporations, firms or associations engaged in the 5. Defenses and Conditions
business of carrying or transporting passengers or
goods or both, by land, water, or air, for compensation, Art. 1734. Common carriers are responsible for the
offering their services to the public. loss, destruction, or deterioration of the goods, unless
the same is due to any of the following causes only:
2. Extraordinary Diligence (1) Flood, storm, earthquake, lightning, or other
natural disaster or calamity;
ARTICLE 1733. Common carriers, from the nature of
their business and for reasons of public policy, are (2) Act of the public enemy in war, whether
bound to observe extraordinary diligence in the international or civil;
vigilance over the goods and for the safety of the
passengers transported by them, according to all the (3) Act of omission of the shipper or owner of the
circumstances of each case. goods;

Such extraordinary diligence in the vigilance over the (4) The character of the goods or defects in the packing
goods is further expressed in articles 1734, 1735, and or in the containers;
1745, Nos. 5, 6, and 7, while the extraordinary
diligence for the safety of the passengers is further set (5) Order or act of competent public authority.
forth in articles 1755 and 1756. Art. 1739. In order that the common carrier may be
exempted from responsibility, the natural disaster
3. Duration of Responsibility must have been the proximate and only cause of the
loss. However, the common carrier must exercise due
ARTICLE 1736. The extraordinary responsibility of diligence to prevent or minimize loss before, during
the common carrier lasts from the time the goods are and after the occurrence of flood, storm or other
unconditionally placed in the possession of, and natural disaster in order that the common carrier may
received by the carrier for transportation until the same be exempted from liability for the loss, destruction, or
are delivered, actually or constructively, by the carrier deterioration of the goods. The same duty is incumbent
to the consignee, or to the person who has a right to upon the common carrier in case of an act of the public
receive them, without prejudice to the provisions of enemy referred to in Article 1734, No. 2.
article 1738.
Art. 1740. If the common carrier negligently incurs in
ARTICLE 1737. The common carrier's duty to delay in transporting the goods, a natural disaster shall
observe extraordinary diligence in the vigilance over not free such carrier from responsibility.
the goods remains in full force and effect even when
they are temporarily unloaded or stored in transit, Art. 1741. If the shipper or owner merely contributed
unless the shipper or owner has made use of the right to the loss, destruction or deterioration of the goods,
of stoppage in transitu. the proximate cause thereof being the negligence of
the common carrier, the latter shall be liable in
ARTICLE 1738. The extraordinary liability of the damages, which however, shall be equitably reduced.
common carrier continues to be operative even during
the time the goods are stored in a warehouse of the Art. 1742. Even if the loss, destruction, or
carrier at the place of destination, until the consignee deterioration of the goods should be caused by the
has been advised of the arrival of the goods and has character of the goods, or the faulty nature of the
had reasonable opportunity thereafter to remove them packing or of the containers, the common carrier must
or otherwise dispose of them. exercise due diligence to forestall or lessen the loss.

4. Presumption of Negligence Art. 1743. If through the order of public authority the
goods are seized or destroyed, the common carrier is
ARTICLE 1735. In all cases other than those not responsible, provided said public authority had
mentioned in Nos. 1, 2, 3, 4, and 5 of the preceding power to issue the order.
article, if the goods are lost, destroyed or deteriorated,
common carriers are presumed to have been at fault or
to have acted negligently, unless they prove that they
Transportation Codal Provisions

6. Limited Liability
Art. 1748. An agreement limiting the common carrier's
Art. 1744. A stipulation between the common carrier liability for delay on account of strikes or riots is valid.
and the shipper or owner limiting the liability of the
former for the loss, destruction, or deterioration of the Art. 1749. A stipulation that the common carrier's
goods to a degree less than extraordinary diligence liability is limited to the value of the goods appearing
shall be valid, provided it be: in the bill of lading, unless the shipper or owner
declares a greater value, is binding.
(1) In writing, signed by the shipper or owner;
Art. 1750. A contract fixing the sum that may be
(2) Supported by a valuable consideration other than recovered. by the owner or shipper for the loss,
the service rendered by the common carrier; and destruction, or deterioration of the goods is valid, if it
is reasonable and just under the circumstances, and has
(3) Reasonable, just and not contrary to public policy. been fairly and freely agreed upon.

Art. 1745. Any of the following or similar stipulations Art. 1751. The fact that the common carrier has no
shall be considered unreasonable, unjust and contrary competitor along the line or route, or a part thereof, to
to public policy: which the contract refers shall be taken into
(1) That the goods are transported at the risk of the consideration on the question of whether or not a
owner or shipper; stipulation limiting the common carrier's liability is
reasonable, just and in consonance with public policy.
(2) That the common carrier will not be liable for any
loss, destruction, or deterioration of the goods; Art. 1752. Even when there is an agreement limiting
the liability of the common carrier in the vigilance over
(3) That the common carrier need not observe any the goods, the common carrier is disputably presumed
diligence in the custody of the goods; to have been negligent in case of their loss, destruction
or deterioration.
(4) That the common carrier shall exercise a degree of
diligence less than that of a good father of a family, or
of a man of ordinary prudence in the vigilance over the
movables transported;

(5) That the common carrier shall not be responsible

for the acts or omission of his or its employees;

(6) That the common carrier's liability for acts

committed by thieves, or of robbers who do not act
with grave or irresistible threat, violence or force, is
dispensed with or diminished;

(7) That the common carrier is not responsible for the

loss, destruction, or deterioration of goods on account
of the defective condition of the car, vehicle, ship,
airplane or other equipment used in the contract of
carriage.

Art. 1746. An agreement limiting the common carrier's

liability may be annulled by the shipper or owner if the
common carrier refused to carry the goods unless the
former agreed to such stipulation.

Art. 1747. If the common carrier, without just cause,

delays the transportation of the goods or changes the
stipulated or usual route, the contract limiting the
common carrier's liability cannot be availed of in case
of the loss, destruction, or deterioration of the goods.