Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Second Regutar Session

4997

HOUSE BILL NO.

Introduced by:

Gabriela Women's Partylist Reps. LUZVIMINDA C. LAGAN and EMMI A. DE JESUS

EXPLANATORY NOTE

This bill seeks to address the innumerable complaints of overseas Filipino workers (OFWs)
regarding the loss, destruction or damage to goods due to negligence committed by common
carriers but which the liability is limited to the amount stipulated in the contract of carriage.

There are now more or less 10 million Filipinos working abroad. As breadwinners, they would
send home every month their remittances and every now and then, they would ship various
goods to their families and relatives This has immensely increased the traffic and volume of
goods and services transported through common carriers, spawning @ highly profitable common
carriage and forwarding industry, here and abroad

Unfortunately. the increase in the traffic and volume of goods transported through common
carfiers has also ted to rising complaints against lost. destroyed or damaged goods. The
complaints mainly revolve around the shippers’ difficulties in recovering just compensation to
actual damages even where the carner had committed negligence because of the liabullty limits
stipulated in the contract of carriage. Be it noted though that the complaints come not only from
OFWs but even from the public at large

To recover actual damages, the shippers have to assert their claims in court, going through the
inconvenience of rigid court litigation where they have to cough up additional expenses. not to
mention time and effort, When such a situation arises, either the shipper is discouraged from
pursuing his/her case in court or that a simple case that could have been promptly resolved with
a universal sense of equily drags on to the disadvantage of the shipper and detriment to the
courts and the society at farge. In both instances. justice and fairness are not served In the first,
the shipper does not get what is due him or her; in the second, delay in the recovery recalls to


mind something like “justice delayed 1s justice denied” in criminal jaw while contributing a farge
part to the case overload of our regular courts

The Civil Code, particular'y Arts. 1749 and 1750. and the Philippine government's adherence to
the 1929 Warsaw Convention sanction stipulations in the bill of lading or contract of carriage
limiting the liability of common carriers for loss. destruction, or damages of consigned goods to
a certain sum, stamping a seal of approval on a trade practice that has mainly treated the
carriage contract as a contract of adhesion. In such contract, it is the carrier which fixes the
amount of its liability due to negligence In the generat run of contracts of common carriage. the
fixed ability of the common carrier is so low that it could not even reimburse the transportation
‘expenses of aggrieved parties in making representation fo make good their claims for recovery
‘While the fees and charges for the transport of goods by comman carriers have increased in as
many times in accordance with the increases in the infiation rate and other factors (such as oll
price hikes), the fixed tiabilily was mostly made unilaterally by common carriers decades or
years back, moving littie if not none at all through the years, Resultantly. it is na longer reflectve
of present economic conditions as the value of fixed liability had ong gone down along with the
devaluation of the Philippine peso, Moreover. the hability clause is most often found in the fine
prints of the contract that are not even explained to the shippers or owners,

All these circumstances add up to a contract that in reality has not been fairly and freely agreed
upon by the contracting parties. The unfatness of the situation cannot be missed: it short-
changes the paying customers.

Given the increasing complaints of the general public and given that such contracts of adhesion
have giver rise to litigations clogging our courts. public welfare demands that corrective
legislation st-suld be made to address the situation

Under this bill, in case of loss, destruction or damage of goods due to negligence in connection
with their transportation in common camage. the carrier shall be liable in the amount of Forty
Thousand Pesos (P40,000.00) or its equivalent in other currency per package. or in case of
goods not shipped in packages, per customary freight unit, unless the nature and value of such
goods have been declared by the shipper before shipment and inserted in the bill of lading. This
declaration, if embodied in the bill of lading. shall be prima facie evidence, but shall not be
conclusive on the carrier,

This bill will liberate the shipper or owner from the restricted terms of the bill of lading
particularly with regard to common limited liability. It will compensate the shippers for value
commensurate to the loss or damage sufferea due to the negligence of common carriers

Jn wiew of the feregaing, approval of this

Xx, u A,
LU; INDA C. ILAGAN EMMI A. DE JESUS
Gabneia Women’s Partylist Gabriela Women’s Partylist

:it is highly recommended


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City. Metro Manila

FIFTEENTH CONGRESS
Second Regular Session

WA: OE
HOUSE BILL NO.

ee

Introduced by:

Gabriela Women’s Partylist Reps LUZVIMINDA C. ILAGAN and EMIE A. DE JESUS

AN ACT FIXING THE AMOUNT OF LIABILITY
OF COMMON CARRIERS FOR THE LOSS, DESTRUCTION OR DAMAGE TO GOODS
IN THE ABSENCE OF A DECLARATION OF A HIGHER VALUE
BY THE OWNER OR SHIPPER IN THE BILL OF LADING

Be it enacted by the Senate and House of Representatives in Congress of the Phitppines
assembled:

Section 1. In case of loss or damage due to negligence on the part of the common carrier in
connection with the transportation of goods, he/she shall be liable in the amount of Forty
Thousand Pesos (P40,000.00) or its equivaient in other currency per package. or in case of
goods not in package, per customary freight unit. unless the owner or shipper declares a higher
value in the bili of lading

Section 2. All jaws, decrees, orders, issuances, rules and regulations which are inconsistent
with this Act are hereby repealed or modified accordingly

Section 3 This Act shall take effect fifteen (15) days after publication in the official Gazette or in
two (2) national newspapers of general circulation

Approved.