COMMON CARRIER

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 (Art. 1732,
Civil Code).

PRIVATE CARRIER
One which, without being engaged in the business of carrying as a public employment, undertakes to
deliver goods or passengers for compensation. (Home Insurance Co. vs. American Steamship Agency, 23
SCRA 24)

TESTS WHETHER CARRIER IS COMMON OR PRIVATE:

The SC in First Philippine Industrial Corporation vs. CA (1995) reiterated the following tests:
1. It must be engaged in the business of carrying goods for others as a public employment and must
hold itself out as ready to engage in the transportation of goods generally as a business and not as
a casual occupation;
2. It must undertake to carry goods of the kind to which its business is confined;
3. It must undertake to carry by the method by which his business is conducted and over its
established roads; and
4. The transportation must be for hire.

DEFENSES OF COMMON CARRIERS

Article 1734 (No other defense may be raised: exclusive or closed list)
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
5. Order or act of competent public authority
6. Exercise of extraordinary diligence

DISTINGUISH COMMON FROM PRIVATE CARRIER:

The common carrier holds himself out in common, that is, to all persons who choose to employ him ready
to carry for hire while the private carrier or special carrier agrees in some special case with some private
individual to carry for hire.

A private carrier is not bound to carry for any reason, unless it enters a special agreement to do so. A
common carrier is bound to carry for all who offer such goods as it is accustomed to carry and tender
reasonable compensation for carrying them. A common carrier is subject to regulation as it is a public
service. a private carrier is not.

The common carrier is bound to exercise extraordinary diligence while a private carrier owes only
diligence of a good father of a family.

A common carrier cannot stipulate that it is exempt from liability for the negligence of its agent or
employees. Such stipulation is void as it is against public policy. A private carrier may validly enter into
such stipulation.
Requisites of Fortuitous Event:
1. The cause of the unforeseen and the unexpected occurrence, or of the failure of the debtor to
comply with his obligation, must be independent of the human will
2. It must be impossible to foresee the event which constitutes the caso fortuito, or if it can be
foreseen, it must be impossible to avoid
3. The occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a
normal manner
4. The obligor (debtor) must be free from any participation in or the aggravation of the injury
resulting to the creditor

DURATION OF LIABILITY:

From the time the goods are unconditionally placed in the possession of, and received by the carrier for
transportation until the same are delivered actually or constructively by the carrier to the consignee or to
the person who has the right to receive them. (Art. 1736)
 It remains in full force and effect even when they are temporarily unloaded or stored in transit unless
the shipper or owner has made use of the right of stoppage in transitu. (Art. 1737)
 It continues to be operative even during the time the goods are stored in a warehouse of the carrier at
the place of destination until the consignee has bee advised of the arrival of the goods and has had
reasonable opportunity thereafter to remove them or otherwise dispose of them. (Art. 1738)
 Delivery of goods to the custom authorities is not delivery to the consignee. (Lu Do v. Binamira, 101
Phil 120)

The duty of a common carrier to provide safety to its passengers so obligates it not only during the course
of the trip, but for so long as the passengers are within its premises and where they ought to be in
pursuance to the contract of carriage. (LRTA v. Navidad, [2003])
 All persons who remain on the premises within a reasonable time after leaving the conveyance are to
be deemed passengers, and what is a reasonable time or a reasonable delay within this rule is to be
determined from all the circumstances, and includes a reasonable time to see after his baggage and
prepare for his departure. (La Mallorca v. CA, 17 SCRA 739 ; Abiotiz Shipping Corporation v. CA, 179
SCRA 95)
 It is the duty of common carriers of passengers to stop their conveyances a reasonable length of time in
order to afford passengers an opportunity to enter, and they are liable for injuries suffered from the
sudden starting up or jerking of their conveyances while doing so. The duty which the carrier of
passengers owes to its patrons extends to persons boarding the cars as well as to those alighting therefrom
(Dangwa Trans Co., Inc. vs. CA 202 SCRA 574).

Reduction of degree of diligence to ordinary diligence, provided it be:

a) In writing, signed by the shipper or owner;
b) Supported by a valuable consideration other than the service rendered by the carriers; and
c) Reasonable, just and not contrary to public policy. (Art. 1744)

VOID STIPULATIONS:

1. That the goods are transported at the risk of the owner or shipper;
2. That carrier will not be liable for any loss, destruction or deterioration of the goods;
3. That the carrier need not observe any diligence in the custody of the goods;
 4. That the carrier shall exercise a degree of diligence less than that of a good father of a family over
the movable transported;
5. That the carrier shall not be responsible for the acts or omissions of his or its employees;
6. That the carrier’s liability for acts committed by thieves or robbers who do not act with grave or
irresistible threat, violence or force is dispensed with or diminished;
That the carrier is not responsible for the loss, destruction or deterioration of the goods on account of the
defective condition of the car, vehicle, ship or other equipment used in the contract of carriage. (Art.
1745)

KABIT SYSTEM
 A system whereby a person who has been granted a certificate of public convenience allows other
persons who own motor vehicles to operate under such license, for a fee or percentage of such earnings. It
is void and inexistent under Art. 1409, Civil Code.

REGISTERED OWNER RULE

 The registered owner of a certificate of public convenience is liable to the public for the injuries or
damages suffered by third persons caused by the operation of said vehicle, even though the same had
been transferred to a third person.

Contract of Affreightment – involves the use of shipping space on vessels leased by the owner in part or
as a whole, to carry goods for another