Buyer Refuses to Pay Lalamove Delivery Fee: Legal Remedies in the Philippines
For educational purposes only; consult a Philippine lawyer for advice on your specific case.
1. Typical Transaction Flow and the Parties Involved
| Role | Legal Capacity | Common Undertakings |
|---|---|---|
| Seller/Shipper | Creditor of the purchase price and often principal to the Lalamove booking | Books the rider, turns goods over for carriage |
| Buyer/Consignee | Debtor of the purchase price and (if agreed) the delivery fee | Receives goods, pays driver or seller |
| Lalamove (“Platform”) | Broker facilitating a contract of carriage | Provides the digital marketplace; issues standard T&C |
| Partner-Driver (Carrier) | Independent common carrier under Art. 1732, Civil Code | Physically transports goods; has a carrier’s lien |
Because Lalamove drivers are paid per completed trip, a refusal by the buyer to hand over the delivery fee or the COD amount triggers three layers of obligations:
- Carrier vs. Consignee – payment of the delivery charge;
- Seller vs. Buyer – payment of the purchase price (and often the same delivery charge);
- Driver vs. Lalamove – reimbursement if Lalamove initially advanced the fee (depends on app setting).
2. Is the Buyer Legally Bound to Pay the Delivery Fee?
Contract of Sale (Arts. 1458 ff., Civil Code). The price and the manner of payment form part of the parties’ agreement; once consent is perfected, obligations become demandable (Arts. 1159 & 1319).
Contract of Carriage.
If the buyer booked the trip, the buyer is the consignor and is directly bound to pay the carrier.
If the seller booked the trip, the buyer’s duty to reimburse the delivery fee must be shown by:
- a written or electronic agreement (Art. 1356),
- trade usage (Art. 1376), or
- conduct implying acceptance (Art. 1315).
Consumer Act (R.A. 7394) & E-Commerce Act (R.A. 8792).
- Online offers must state the “total price.” If delivery is excluded, it must be clearly disclosed; otherwise, silence is construed against the seller, not the buyer.
- Misrepresentation of “free shipping” when the buyer is later charged can constitute deceptive practice.
3. When the Buyer Refuses to Pay: Menu of Remedies
| Remedy | Who May Invoke | Core Elements | Procedural Route |
|---|---|---|---|
| a. Demand Letter | Seller or Driver | Proof of obligation + demand | Extrajudicial; prerequisite to litigation; sent by courier/email |
| b. Small-Claims Suit (A.M. 08-8-7-SC, 2022 rev.) | Seller, Driver | Money claim ≤ ₱400,000; no Atty. needed | File “Statement of Claim” in MTC; 30-day timeline |
| c. Ordinary Civil Action | Seller, Driver, or Lalamove | > ₱400,000 or with damages | RTC jurisdiction; counsel required |
| d. Criminal Complaint for Estafa (Art. 315 par. 2[a] or [d]) | Seller or Driver | Fraudulent refusal to pay after delivery or with false pretenses at booking | File with prosecutor’s office; needs proof of deceit and damage |
| e. DTI or National Telecommunications Commission (NTC) Complaint | Buyer or Seller | Violations of consumer disclosures or platform duties | Administrative mediation; may issue compliance orders |
| f. Exercise of Carrier’s Lien (Arts. 1731 & 2241[3]) | Driver | Retain possession of goods until payment | Must give notice; unreasonable delay may incur liability |
| g. Platform-Mediated Resolution | All | Built-in dispute channel under Lalamove T&C | Faster but contractual, not judicial |
| h. Alternative Dispute Resolution (ADR) | All | Parties must agree or pre-consent under T&C | Mediation or arbitration under R.A. 9285 |
4. Step-by-Step Playbook for Sellers and Drivers
Secure Proof Immediately
- Screenshots of in-app booking, chat, waybill photo, buyer’s refusal, live-location logs.
- Electronic data are admissible under the Rules on Electronic Evidence.
Attempt Amicable Settlement
- Call or message the buyer; record calls only with consent (R.A. 4200).
- Politely reiterate contract terms, amount due, and a firm payment deadline.
Send a Written Demand (10- to 15-day window)
- Cite Civil Code Arts. 1169 & 1170 (default with bad faith).
- State intention to escalate to court and to claim interest (Art. 2209) and damages (Art. 2199).
Escalate
- Small-Claims if amount ≤ ₱400k. Attach the demand letter, proof of booking, and delivery receipt.
- Criminal only if clear deceit (e.g., buyer promised to pay on delivery but actually intended non-payment). Check the prosecutor’s threshold for estafa vs. civil breach.
- Lien – If goods are still aboard, retain them but notify the seller/buyer immediately. Keep the delay reasonable to avoid liability for deterioration (Art. 1170).
Enforcement & Collection
- For small-claims judgments, request writ of execution; a sheriff can garnish bank accounts or levy property.
- Compromise agreements reached in DTI mediation are enforceable as arbitral awards (R.A. 9285, Sec. 40).
5. Preventive Clauses to Build into Future Transactions
| Risk | Protective Clause | Sample Wording |
|---|---|---|
| Non-payment of delivery fee | “Buyer shall bear delivery charges via Lalamove and must remit the amount directly to the rider upon receipt; failure is default under Art. 1169.” | |
| Uncollected COD amount | Require e-wallet pre-payments or use Lalamove’s Wallet+ COD collection service (seller gets funds via the app, not through the driver). | |
| Refusal to receive parcel | “In case of refusal, goods shall be deemed delivered and stored at buyer’s risk and expense; second-attempt fees are for buyer’s account.” | |
| Evidentiary gaps | “All communications via [specific platform] form part of this agreement pursuant to the Electronic Commerce Act.” |
6. Special Notes for Lalamove Partner-Drivers
- Standard Terms & Conditions grant a receiver-pays or sender-pays toggle. Choose the safer ‘sender pays’ when possible; you get paid before driving out.
- If you advance cash (e.g., ‘Purchase Service’), keep the in-app receipt; refusal to reimburse is estafa (Art. 315[2-a]).
- Maintain professionalism; detaining the consignee or using threats is unjust vexation or grave coercion. The lien is over goods only, not persons.
7. Timeline Cheat-Sheet
| Day | Action | Legal Basis |
|---|---|---|
| 0 | Buyer’s refusal | Breach begins; default possible (Art. 1169) |
| 0-2 | Try soft follow-up | Good-faith effort |
| 2-10 | Send demand letter | Interrupts prescription (Art. 1155) |
| 11-30 | File small-claims if unpaid | A.M. 08-8-7-SC |
| 30+ | File criminal estafa or elevate to RTC | Art. 315; Rules of Court |
8. Prescription Periods to Watch
| Cause of Action | Period | Governing Law |
|---|---|---|
| Civil action for price or fee | 10 years (written) or 6 years (oral) | Art. 1144 & 1145, Civil Code |
| Estafa | 15 years (if penalties up to prision mayor) under Art. 90, RPC as amended by R.A. 10951 | |
| DTI consumer complaint | File within 2 years from cause (Sec. 157, R.A. 7394) |
Key Takeaways
- Obligation follows agreement. Whoever agreed—explicitly or by conduct—to shoulder the Lalamove fee is legally bound to pay it once the service is rendered.
- Start with evidence and a demand letter; most disputes end there.
- The Revised Rules on Small Claims offer the quickest court-based remedy for amounts up to ₱400 k.
- A buyer who never intended to pay may face estafa—a criminal, not just civil, consequence.
- Pre-transaction safeguards—clear price breakdowns, e-wallet prepay, and well-drafted terms—remain the most cost-effective solution.