Limitations on Carrier Liability

We've already read this article. Now, we go further into what limitations can be made on a common carrier's liability. A common carrier's level of diligence can be lowered to a degree less than extraordinary diligence if the following requisites are present:

1.) The agreement must be written and signed by the shipper/owner

2.) It must be backed by a valuable consideration besides the common carrier's service

3.) It must be fair, reasonable and not contrary to law morals, good customs, public order or public policy

The liability can be limited to the value of the goods stated in the bill of lading unless the owner declares a greater value. Such a stipulation won't be valid if either are present:

1.) Damage/loss of the goods are due to the common carrier's own negligence

2.) An unqualified limitation of the liability to the agreed valuation exists

Invalid Stipulations

This list isn't exclusive, but is gives you an idea of what the common carrier can't make the owner/shipper agree to:

1.) "Transport at your own risk" policy

2.) No liability for the goods' destruction, loss or deterioration

3.) The common carrier isn't required to observe any diligence in the custody of the goods

4.) Standard of diligence is less than the ordinary (good father of a family)

5.) No liability for acts or omissions committed by the common carrier's employees

6.) No or diminished liability for acts committed by robbers/thieves

7.) No responsibility for the goods' loss, destruction or deterioration because of defects in the vehicle, ship, aircraft, etc of the common carrier

It must also be remembered that a common carrier can also be liable for the death or injury of a passenger caused by the willful acts or negligence of other passengers if the ordinary diligence of the carrier's employees could have prevented the death/injury in question (Art. 1763, Civil Code.) If the death or injury was caused by someone who isn't a passenger, the common carrier won't be liable.

Another thing to remember, especially in the case of buses, jeepneys and similar vehicles, is that the moment a person puts his foot in the doorway of the vehicle, he's already considered a passenger (Dangwa Transportaion vs. CA, 202 SCRA 574.)

Non-paying Passengers

For non-paying passengers, the general rule is that the common carrier is liable for such a passenger's death or injury. The exception is in the case of simple negligence if there is a stipulation. In case of gross negligence or willful acts, however, the common carrier will be liable; this is the exception's exception.

A non-paying child travelling with his/her guardian is considered a passenger. If the non-paying passenger, however, was just allowed by the employee of the common carrier to hitch a ride, then the common carrier won't be liable for that passenger's death or injury.