Common vs. Private Carriers

• The Civil Code of the Philippines governs common carriers.
• The Code of Commerce and special laws regulate matters not in the Civil Code.

Definition of Common Carriers

• Article 1732 defines common carriers as entities transporting passengers or goods for compensation.
• Services are offered to the public via land, water, or air.
• They hold themselves to the public for hire.
• These businesses transport goods or people for profit as a public service.

Private Carriers Defined

• These carriers do not engage in transportation as a vocation.
• They don't offer services to the general public.
• They transport goods or people by special agreement, either for free or for hire.
• Civil and Commercial Codes distinguish cargo and passenger contracts because rights/defenses differ.

Common vs. Private Carriers

• Common carriers serve all who hire them, while private carriers agree to serve specific individuals.
• Common carriers must carry all goods offered with reasonable compensation.
• Private carriers are not obligated without a special agreement.
• Common carriers are for public service, regulated by authorities, but, private carriers are not.
• Common carriers have a duty to exercise extraordinary diligence, but private carriers are exempt.

Contract of Carriage

• Article 1732 does not differentiate based on primary or ancillary activity.
• No distinction is made between regular/scheduled and occasional/unscheduled transportation services.
• Passenger transport contracts are distinct due to the carrier's public-facing role.
• These contracts involve a public duty, and employee negligence can lead to damage claims.

Responsibility of Common Carriers

• Article 1733 states that common carriers must practice extraordinary diligence for passenger safety because of their nature and public policy.
• Article 1755 says, common carriers must transport passengers safely, exercising utmost care.
• Article 1756 outlines that common carriers are presumed at fault for passenger injuries unless proven otherwise via extraordinary diligence (Articles 1733, 1755).
• Article 1757 states that the safety responsibilities cannot be waived or lessened.
• "Extraordinary diligence" involves exceptional care to protect property/rights.
• Common carriers must exhibit this level of care for the safety of passengers and goods.

Carrier Liability

• Extraordinary diligence starts once a passenger steps onto the platform.
• The carrier-passenger relationship extends until the passenger has reasonable time to leave the premises.
• Public convenience certificates are not a liability requirement as liability emerges from acting as a common carrier.
• Common carriers must ensure passengers reach their destination safely.
• Negligence is presumed if injury or death occurs and the carrier is liable unless extraordinary diligence can be proven.

Liabilities of Common Carriers

• Article 1759 - Common carriers are liable for employee negligence or willful acts, irrespective of scope/orders.
• Liability persists even if exercising due diligence in employee selection/supervision.
• Bus companies must assess qualifications, experience, and applicant service records.
• Due diligence involves regulations, proper instructions, and consistent compliance monitoring.
• Shipping companies must ensure seaworthiness, adequate equipment, and competent crew.

Enforcement of Carrier Liability

• Breach of contract (culpa contractual): passengers file against the carrier.
• Criminal Complaint: strangers/pedestrians file against the driver for reckless imprudence.
• Civil Suit: victims can file against the carrier/driver based on culpa aquiliana/quasi-delict.

Recoverable Damages

• Actual damages: cover medicine and hospitalization costs.
• Unrealized profits: compensatory damages based on net yearly income and expected years of life.
• Formula: Net Earning Capacity = [2/3 x (80 - age at death) x (gross annual income - living expenses)].
• Moral damages: awarded when a passenger dies or the carrier acted fraudulently/in bad faith.
• Exemplary/corrective damages: awarded for wanton, reckless, or oppressive conduct.
• Article 2231 of the Civil Code allows exemplary damages for quasi-delicts involving gross negligence.
• Death indemnity: awarded as per Supreme Court rulings.
• Attorney's fees: recoverable with exemplary damages (Article 2008 of the Civil Code).
• Nominal damages: awarded without proof of bad faith if moral damages are unproven (Articles 2221, 2222).

Tickets as Contracts of Adhesion

• Passage tickets serve as evidence, but are contracts of adhesion.
• Terms are interpreted against the carrier as they draft the provisions unilaterally.
• These contracts are binding, even if passengers did not read the terms.
• Passengers consent by adhering and can reject entirely.
• Conditions remain valid, even with small print, though courts carefully scrutinize for fairness.
• This is in line with Article 24 of the Civil Code, protecting disadvantaged parties.

DOT Accreditation

• Tourism Act of 2009 and regulations mandate periodic DOT accreditation for primary tourism enterprises.
• This accreditation concerns facilities and service quality.
• Primary Tourism Enterprises include travel/tour services, transport, accommodations, tourism services, etc.
• Tourist transport (land, sea, air), airport taxis, and tourist drivers need DOT accreditation.

General Requirements for DOT Accreditation

• Accomplished DOT Accreditation Application Form
• Valid Mayor's Permit/Business Permit
• DTI Business Name Certificate (if Single Proprietorship)
• SEC Registration Certificate, Articles of Incorporation, and By-Laws (if Corporation/Partnership)
• Notarized list of officials/employees with positions and nationalities
• Additional documents as required by the DOT.
• Valid working permit for foreign nationals from DOLE
• Valid visa from the Bureau of Immigration and Deportation

Specific Requirements for Land Transport

• Valid Tourist Transport Service Franchise of vehicles
• Valid LTO Certificate of Vehicle Registration
• LTFRB Confirmation of Units (current year)
• Proof of attendance to DOT seminar for tourist drivers

Specific Requirements for Water Transport

• Valid MARINA Certificate of Public Convenience
• Valid Certificate of Inspection by MARINA
• Valid Certificate of Compliance with MC 65/65A by MARINA

Specific Requirements for Air Transport

• Valid Certificate of Airworthiness from CAAP
• Valid franchise to operate the aircraft (CAB issued)

Specific Requirements for Motorized Banca

• Valid MARINA Certificate of Public Convenience
• Valid Certificate of Inspection (validity should not be less than three (3) months from the filing application date)
• Valid CPC or Provisional Authority/Special Permit with the attached rider, containing trips/authorized rates/ MARINA Certification
• Valid copy of the Compulsory Passenger Insurance with appropriate coverage for each passenger
• Copy of rates and routes to be served and scheduled