Pointers

Question 1

Public utility under Ra 11659

Answer 1

Public Utility. - Public Utility refers to a public service that operates, manages or controls for public use any of the following:

“(1) Distribution of Electricity;

“(2) Transmission of Electricity;

“(3) Petroleum and Petroleum Products Pipeline Transmission Systems;

“(4) Water Pipeline Distribution Systems and Wastewater Pipeline Systems, including sewerage pipeline systems;

“(5) Seaports; and

“(6) Public Utility Vehicles.

Question 2

Distinguish between public service and public utility

Answer 2

The term “public service” is anything defined under Section 13 (b), of CA 141 while the term “public utility” refers to a business or service of public consequence such as electricity, gas, water, transportation, telephone or telegraph service. Simply stated, a public utility provides a service or facility needed for present day living
which cannot be denied to anyone who is willing to pay for it. (NAPOCOR vs. CA and Cepalco, GR no. 112702, September 26, 1997)
- Public utilities are privately owned and operated business whose services are essential to the general public. They are enterprises, which specially cater to the needs of the public and conduce to their comfort and convenience.
(KMU vs. Garcia Jr., GR no. 115381, December 23, 1994)

Question 3

What is public service?

Answer 3

It includes every person that now or hereafter may own, operate, manage, or control in the Philippines, for hire or compensation, with general or limited clientele, whether permanent, occasional or accidental, and done for general purposes, any common carrier, railroad, street
railway, traction railway, subway motor vehicle, either for freight or passenger, or both with or without fixed route and whether may be its classification, freight or carrier service of any class, express service, steamboat or steamship line, pontines, ferries, and water craft, engaged
in the transportation of passengers or freight or both, shipyard, marine railways, marine repair shop, [warehouse] wharf or dock, ice plant, ice-refrigeration plant, canal, irrigation system, gas, electric light, heat and power water supply and power, petroleum, sewerage system, wire or wireless communications system, wire or
wireless broadcasting stations and other similar public services. (Sec. 13(b), CA 141)

Question 4

Distinguish common carrier from private carrier.

Question 5

TESTS IN DETERMINING A COMMON CARRIER OF
GOODS:

Answer 5

1. He must be engaged in the business of carrying goods for others as a public employment, and must hold himself out as ready to engage in the transportation of goods for person generally as a business and not as a casual occupation:
2. He must undertake to carry goods of the kind to which his business is confined;
3. He must undertake to carry by the method his
   business is conducted and over his established
   roads; and
4. The transportation must be for hire. (First philippine Industrial Corp vs. CA, GR no.125948, December
   29, 1998)

Question 6

What is Arrastre?

Answer 6

Refers to hauling of cargo comprehends the
handling of cargo on the wharf or between the
establishment of the consignee or shipper and the ship’s tackle. (Mindanao Terminal and Brokerage Services vs. Phoenix Assurance Company, GR no. 162467, May 8, 2009)
- The responsibility of the arrastre operator lasts until the delivery of the cargo to the consignee.
(Mindanao Terminal and Brokerage Services vs.
Phoenix Assurance Company, Supra)

Question 7

What is stevedoring?

Answer 7

Refers to the handling of the cargo in the holds of
the vessel or between the ship’s tackle and the
holds of the vessel. The responsibility of the
stevedore ends upon the loading and stowing of
the cargo in the vessel. (Mindanao Terminal and
Brokerage Service vs. Phoenix Assurance
Company, Supra)
- A stevedore is not a common carrier for it does not transport goods or passengers, it is not akin to a warehousemen for it does not store goods for profit. (Mindanao Terminal and Brokerage Service vs. Phoenix Assurance Company, Supra)

Question 8

Meaning of Extraordinary Diligence:

Answer 8

Extraordinary diligence in the vigilance over the
goods tendered for shipment requires the common
carrier to know and to follow the required
precaution for avoiding damage to, or destruction
of the goods entrusted to it for safe carriage and
delivery. (Compania Maritima vs. CA, GR no. L31379, August 29, 1958)
- It requires common carriers to render service with
the greatest skill and foresight and to use all the
reasonable means to ascertain the nature and
characteristics of goods tendered for shipment,
and to exercise due care in the handling and
stowage, including such methods as their nature
requires.

Question 9

REQUISITES BEFORE THE CARRIER CAN INVOKE
FORTUITOUS EVENT:

Answer 9

1. The cause of the unforeseen and 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 that
   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. (See; Art. 1174, NCC;
   Gacal vs. PAL, GR no. L-55300, March 15, 1990;
   Aquino & Hernando, p. 186)