Bohol Tribune
Opinion

Rule of Law

By:  Atty. Gregorio B. Austral, CPA

When does a contract of carriage begin?

The riding public needs to know that the common carriers we deal with daily are bound by a contract carriage that requires them to observe extraordinary diligence.  

A common carrier, from the nature of its business and for reasons of public safety, is bound to observe extraordinary diligence for the safety of the passengers it transports. (Baritua v. Mercader, 350 SCRA 86).  The law requires common carriers to carry passengers safely using the utmost diligence of very cautious persons with due regard for all circumstances. In case of death or injury to a passenger, a common carrier is presumed to have been at fault or negligent. (Light Rail Transit Authority v. Navidad, 397 SCRA 75 (2003))

In Northwest Airlines v. Catapang, 594 SCRA 75 (2003), the Court ruled that passengers have the right to be treated by a carrier’s employees with kindness, respect, courtesy, and due consideration.  They are entitled to be protected against personal misconduct, injurious language, indignities, and abuses from such employees.  So it is that any discourteous conduct on the part of these employees toward a passenger gives the latter an action for damages against the latter.

The most common defense that common carriers raise in cases of breach of the contract of carriage is to deny the existence of the contract; hence, absent such a contract, it has no obligation to observe extraordinary diligence, and no presumption of fault arises.

This brings us to the issue of when a contract of carriage begins.

The best evidence of a contract of carriage of passengers is the ticket.  However, there will still be a contract of carriage even without a ticket.  The Statute of Frauds covers six (6) contracts, none of which is a contract of transportation, which means that a contract of carriage may be oral. 

In British Airways v. Court of Appeals, 218 SCRA 699 (1993)a contract of common carriage consists of two aspects, namely:

  1. Contract to carry (at some future time), which contract is consensual and is necessarily perfected by mere consent under Art. 1356 of the Civil Code; and
  2. Contract “of carriage” or “of common carriage” itself should be considered as real contract, for not until carrier is actually used can carrier be said to have already assumed obligations of a carrier.

A carrier can be held liable for damages for failure to comply with the contract to carry which is consensual in nature.

In Dangwa Transpo. Co. v. Court of Appeals, 202 SCRA 574 (1991), the victim herein, by stepping and standing on the platform of the bus, is already considered a passenger and is entitled to all the rights and protection pertaining to a contract of carriage.

San Diego v. Transit MD (CA) O.G. 3416 involves a case of an old man who signaled to the bus that he wanted to ride.  The bus stopped, and as soon as the old man stepped on the platform of the bus, the driver recklessly started to accelerate it.  The old man slipped and was ran over, causing his death.  The heirs sought to recover damages from the carrier based on culpa contractual .  The carrier contended that there was yet no contract of carriage.  The Court held that there was a perfected contract of carriage, as soon as the old man placed his foot on the platform, he was already a passenger. (Villanueva & Villanueva)

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