PUBLIC SERVICE DEFINITION
“The term "public service" 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 business purposes,
any common carrier, railroad, street railway, traction railway, sub-way 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:
THIRD PARTIES' TRANSPO, PROCESSING, AND MARKETING OF AGRI PRODUCTS ARE NOT CONSIDERED PUBLIC SERVICE
Provided, however, That
a person engaged in agriculture, not otherwise a public service,
who owns a motor vehicle AND
uses it personally
AND/OR enters into a special contract
whereby said motor vehicle is offered for hire or compensation
to a third party or third parties engaged in agriculture,
not itself or themselves a public service,
for operation by the latter for a limited time AND
for a specific purpose directly connected with the cultivation of his or their farm,
the transportation, processing, and marketing of agricultural products of such third party or third parties shall not be considered as operating a public service for the purposes of this Act.”
"PERSON" INCLUDES EVERY
- INDIVIDUAL
- CO-PARTNERSHIP
- JOINT-STOCK COMPANY
- CORPORATION
a. WHETHER DOMESTIC OR FOREIGN
- THEIR:
a. LESSEES
b. TRUSTEES
c. RECEIVERS
- MUNICIPALITY
- PROVINCE
- CITY
- GOCC
- AGENCY OF GOVERNMENT OF THE PH
- WHATEVER OTHER PERSONS/ENTITIES THAT MAY OWN OR POSSESS OR OPERATE PUBLIC SERVICES
(c) The word "person" includes every individual, co-partnership, joint-stock company or corporation, whether domestic or foreign, their lessees, trustees, or receivers, as well as any municipality, province, city, government-owned or controlled corporation, or agency of the Government of the Philippines, and whatever other persons or entities that may own or possess or operate public services. (As amended by Com. Act 454 and RA No. 2677)
COMMON CARRIERS MAY HAVE LIMITED CLIENTELE
Given the breadth of the aforequoted characterization of a common carrier, the Court has considered as common carriers pipeline operators, 18 custom brokers and warehousemen, 19 and barge operators 20 even if they had limited clientèle.
(Spouses Pereña v. Spouses Zarate, G.R. No. 157917, [August 29, 2012], 693 PHIL 373-399)
"WITH OR WITHOUT FIXED ROUTE"
EVEN WITH NO FIXED OR PUBLICLY KNOWN ROUTE, TERMINALS, TICKETS, A COMMON CARRIER IS SUCH IF IT OFFERS ITS SERVICES TO THE PUBLIC
Prudential Guarantee (Asia Lighterage's insurer) filed a complaint for a sum of money against Asia Lighterage after the former paid General Milling Corporation when AL’s barge containing GMC’s products sunk.
AL is arguing that they are not liable because they are not a common carrier, thus, it is not expected to exercise extraordinary diligence, but rather mere due diligence.
The Supreme Court ruled against AL.
Here, even though AL argued that it is a private carrier because it has no fixed and publicly known route, no terminals, and issues no tickets, the SC said that the law (Article 1732, NCC) does not distinguish between a carrier offering its services to the general public, and one who offers them to a narrow segment.
The fact AL offers its barges to the public for carrying goods by water for compensation makes it a common carrier expected to exercise extraordinary diligence
(Asia Lighterage v. CA, 2003)
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