Friday, August 2, 2019

Resort operator offering free ferry services as part of its tour package considered a common carrier


The Civil Code defines "common carriers" in the following terms:

Article 1732.  Common carriers are persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air for compensation, offering their services to the public.

The above article makes no distinction between one whose principal business activity is the carrying of persons or goods or both, and one who does such carrying only as an ancillary activity (in local idiom, as "a sideline").  Article 1732 also carefully avoids making any distinction between a person or enterprise offering transportation service on a regular or scheduled basis and one offering such service on an occasional, episodic or unscheduled basis.  Neither does Article 1732 distinguish between a carrier offering its services to the "general public," i.e., the general community or population, and one who offers services or solicits business only from a narrow segment of the general population.  We think that Article 1733 deliberately refrained from making such distinctions.

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Indeed, respondent is a common carrier.  Its ferry services are so intertwined with its main business as to be properly considered ancillary thereto.  The constancy of respondent's ferry services in its resort operations is underscored by its having its own Coco Beach boats. And the tour packages it offers, which include the ferry services, may be availed of by anyone who can afford to pay the same.  These services are thus available to the public.

That respondent does not charge a separate fee or fare for its ferry services is of no moment.  It would be imprudent to suppose that it provides said services at a loss.  The Court is aware of the practice of beach resort operators offering tour packages to factor the transportation fee in arriving at the tour package price.  That guests who opt not to avail of respondent's ferry services pay the same amount is likewise inconsequential.  These guests may only be deemed to have overpaid.

As De Guzman instructs, Article 1732 of the Civil Code defining "common carriers" has deliberately refrained from making distinctions on whether the carrying of persons or goods is the carrier's principal business, whether it is offered on a regular basis, or whether it is offered to the general public.  The intent of the law is thus to not consider such distinctions.  Otherwise, there is no telling how many other distinctions may be concocted by unscrupulous businessmen engaged in the carrying of persons or goods in order to avoid the legal obligations and liabilities of common carriers. (Spouses Cruz v. Sun Holidays, G.R. No. 186312, June 29, 2010)

COMMENT

Resort operator offering free ferry services as part of its tour package considered a common carrier
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Oleh