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Course Outline for the Law on Transportation and Public Utilities First Semester, School Year 2014-2015

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Course Outline for the Law on Transportation and Public Utilities First Semester, School Year 2014-2015 Course Outline for the Law on Transportation and Public Utilities First Semester, School Year 2014-2015 I. Introduction A. Concept of “public service” B. Transportation and public utility 1. Definition of a “public service” 2. Regulation versus free enterprise C. Regulatory Agencies D. The contract of transportation 1. Coverage a. Transportation of persons b. Transportation of things 2. Means of Transportation a. By land b. By sea c. By air 3. Types of transportation a. Domestic carriage b. International carriage E. Use of transport 1. Basic commercial concepts in the use of transport services 2. Parties to the contract of transport a. Passenger b. Shipper c. Carrier d. Receiver or consignee II. Transportation and public utilities 1. The regulatory agencies a. Land Transportation, Franchising and Regulatory Board (LTFRB) – EO 202, s. 1987 b. Land Transportation Office (LTO) – RA 4136 c. Light Rail Transit Authority (LRTA) – EO 603. as amended s. 1980 d. Toll Regulatory Board (TRB) – PD1112 as amended e. Civil Aeronautics Board (CAB) – RA 776 f. Civil Aviation Authority of the Philippines (CAAP) – RA 9497 g. Maritime Industry Authority (MARINA) – PD 474, EO 125/125-A, s. 1987, RA 9295 h. Philippine Ports Authority (PPA) – PD 857 i. Philippine Coast Guard (PCG) – RA 9993 j. National Telecommunications Commission (NTC) – EO 546, s. 1979 k. National Water Resources Board (NWRB) – EO 860, s. 2010 1 l. Local Water Utilities Administration (LWUA) – EO 421, s. 2005 m. Energy Regulatory Commission (ERC) – RA 9136 III. Public law aspect of transportation – State regulation A. Public utility concept of transportation 1. Constitutional basis for regulating public utilities – 1987 Constitution, Article XII, Section 11 Luzon Stevedoring Corporation v. Anti-Dummy Board, G. R. No. L- 26094, August 18, 1972 a. Historical antecedents of the constitutional provision – Article XIV, Section 8, 1935 Constitution; Article XIV, Section 5, 1973 Constitution 2. Definition of public utilities Luzon Brokerage v. Public Service Commission, 57 Phil. 536, G. R. No. 37661, November 16, 1932 North Negros Sugar Co v. Serafin Hidalgo, 63 Phil 664, G. R. No. 42334, October 31, 1936 3. Definition of public services – Section 13 (b) Public Service Act (Com. Act No 146) Luzon Stevedoring Company v. Public Service Commission, G. R. No. L- 5458, September 16, 1953, 93 Phil 735 B. Grant of franchises – 1. Legislative franchises 1987 Constitution, Article XII, Section 11 Pangasinan Transportation Co., Inc. v. Public Service Commission, G. R. No. 47065, June 26, 1940. 70 Phil 221 Radio Communications of the Philippines v. National Telecommunications Commission, G. R. No. L-68729, May 29, 1987 2. Franchises granted through delegated authority; powers and functions of regulatory agencies a. Land transport Section 19, Chapter 5, Title XV, Executive Order No. 292 (Administrative Code of 1987) b. Air transport – Section 11, Republic Act No. 776, (Civil Aeronautics Act of the Philippines) c. Sea transport Section 12, Presidential Decree No. 474 (Charter of the Maritime Industry Authority) 2 Section 3, Executive Order No. 125-A, April 13, 1987, amending Section 14 of Executive Order No. 125, January 30, 1987 Section 10, Republic Act No. 9295 (Domestic Shipping Development Act of 2004) C. Regulation of public services – Section 13 (a), Public Service Act (CA 146) 1. The Certificate of Public Convenience Nature of a CPC When a CPC is not required 2. Regulation of ownership – Section 16 (a), Public Service Act Luzon Stevedoring Corporation v. Anti-Dummy Board, G. R. No. L-26094, August 18, 1972 Sections 3, 5, and 6, Republic Act No. 9295 (Domestic Shipping Development Act of 2004) Section 12, RA 776 3. Regulation of rates – Section 16 (c). Public Service Act a. Approval of rates charged Kilusang Mayo Uno Labor Center v. Jesus B. Garcia, Jr., et al., G. R. No. 115381, December 23, 1994 b. Return on Rate Base Republic of the Philippines v. Enrique Medina, et al., G. R. No. L-32068, October 4, 1971 c. Rule with respect to water transport Sections 8 and 11, RA 9295 d. Rule with respect to air transport Section 10, RA 776 Right to set rates by legislative franchise grantees subject to the rules of the Civil Aeronautics Board Paragraph 2.2, Executive Order No. 219, January 3, 1995 (Establishing the Domestic and International Civil Aviation Liberalization Policy) Also study the charters of to see the nature and extent of legislative franchises: 1. Filipinas Orient 2. Air Manila 3. Silangan Airways 4. Cebu Air 5. All Asia Airlines 6. Air Philippines 7. Grand International Airways 8. Davao Agritech 9. Air Mabuhay 3 10. Laoag International Airlines 11. Provincial Airways 12. Asian Spirit 13. Philippine Airlines (PD 1590) 4. Regulation of authorized routes – Section 13 (b), Public Service Act Section 19, Chapter 5, Title XV, EO 292 Section 3, Executive Order No. 125-A, April 13, 1987 Section 11, RA 776 a. General power of regulation Laguna Tayabas Bus Company v. Felix T. Regodon, G. R. No. L- 9586, December 27, 1956, 100 Phil 570 b. Presumption of adequacy of service; protection of investments rule; protection of prior operator Batangas Transportation Company v. Cayetano Orlanes, G. R. No. 28865, December 19, 1928, 52 Phil 455 c. Change in the rules on presumption of adequacy of service and protection of investments of prior operators Paragraph 1, Executive Order No. 185, June 28, 1994 (Opening the Domestic Water Transport Industry to New Operators and Investors) Paragraph 1, Executive Order No. 219, January 3, 1995 (Establishing the Domestic and International Civil Aviation Liberalization Policy) 5. Regulation of equipment used, imposition of reasonable standards – Section 16 (d), Public Service Act Ramon L. Corpus v. Public Service Commission, G. R. No. L-325, October 31, 1947, 79 Phil 444 Section 19, Chapter 5, Title XV, EO 292 Section 9 and 10, RA 9295 Section 10 (C), RA 776 6. Regulation of period within which a franchise may be enjoyed Section 19, Chapter 5, Title XV, EO 292 Section 10, RA 9295 Section 11, RA 776 7. Government’s right of requisition Section 9, Republic Act No. 7471 (Overseas Shipping Development Act) Section 24, Republic Act No. 9295 4 Legislative franchise of airline grantees – right of government to take over and operate equipment of grantee paying for its use or damages 8. Revocation of license Maria Concepcion Paez Vda. De Cruz v. Tobias P. Marcelo, G. R. Nos. L-15301 and L-15302, March 30, 1962 Section 21, paragraph 2, Public Service Act Section 19, Chapter 5, Title XV, EO 292 Section 10, RA 9295 Section 22, RA 776 Protection of operators from foreign competition – the principle of cabotage 9. Protection of operators from foreign competition – the principle of cabotage Luzon Stevedoring Corporation v. Anti-Dummy Board, G. R. No. L- 26094, August 18, 1972 Sections 902 and 905, Part I, Title II, Book II, Tariff and Customs Code Sections 1001 and 1009, Part I, Title III, Book II, Tariff and Customs Code Section 6, RA 9295 D. Quasi-judicial functions of regulatory agencies Sections 16 and 17, Public Service Act 1. LTFRE – Sections 19 and 20, Chapter 5, Title XV, EO 292 2. MARINA – Section 12, Presidential Decree 474, Charter of the Maritime Industry Authority Section 12. EO 125-A Section 10, RA 9295 3. CAB – Sections 10, 13, and 14, RA 776 IV. Private law aspect of transportation – Contractual relations of the parties to the contract of transportation A. Applicable law 1. Philippine law will apply in the following cases: a. Domestic carriage b. Contractual stipulation applies Philippine law c. There is no contractual stipulation but the passenger or goods are bound for the Philippines 2. Applicable Philippine law: 5 a. Civil Code b. Code of Commerce c. Carriage of Goods by Sea Act B. Philippine Law – Code of Commerce (1888) 1. Carriage of passengers by water a. Rights of the carrier i. Demand payment of passage – Article 694 ii. Grant passage only to the specified person – Article 695 b. Rights of the passenger i. Demand a refund of passage for suspension or interruption of voyage – Articles 697 and 698 Trans-Asia Shipping Lines v. Court of Appeals, G. R. No. 118126, March 4, 1996 c. Obligations of the carrier i. Transport passengers to their ports of destination – Article 698, last paragraph, Article 701 ii. Provide subsistence during the voyage – Article 702 d. Obligations of the passenger i. Observe measures to maintain order and discipline on board – Article 700 2. Contract for the carriage of goods a. Carriage on bill of lading terms b. Carriage on charter party terms 3. Carriage on bill of lading terms a. Definition of a bill of lading i. Receipt of the goods ii. Evidence of the agreement to transport and deliver the goods iii. Document of title in case of transferable bills of lading b. Contents of a bill of lading – Articles 350 and 352 c. Carrier’s obligations i. Deliver the goods within the time stipulated or if no time has been stipulated then within a reasonable time – Articles 358, 370 ii. Deliver the goods in the same condition as when these were shipped – Article 363 iii. Deliver the same goods it received – Article 368 d. Carrier’s rights i. Refuse packages unfit for transportation – Article 365 6 ii. Inspect the goods prior to acceptance – Article 357 iii. Exercise its lien over the goods in case of non-payment of freight – Articles 374, 375, and 376 e. Carrier’s liability i. Risk of the shipper and liability of the carrier – Articles 361 and 362 Tan Chiong Sian v. Inchausti and Co., G. R. No. 6092, March 8, 1912 Mauro Ganzon v. Court of Appeals, et al., G. R. no. L-48757, May 30, 1988 ii.
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