Federal Express Corporation vs.

Antonino

G.R. No. 199455, June 27, 2018

LEONEN, J.:

TOPIC:

Negotiable Instruments – General Principles

Facts:

Respondent Eliza Antonino is the owner of a condominium unit in New York

City, USA. While they were in the Philippines, the monthly common charges for the
unit became due; thus, respondents decided to send two citibank checks to their friend
Veronica Sison for the payment of the monthly charges and the real estate tax dues.
These two checks were sent through Petitioner Federal Express (FedEx) by airmail.
However, these two checks did not reach Ms. Sison. When asked for the whereabouts of
the checks, FedEx informed Sison that the checks were received by a neighbor but there
was no signed receipt. Respondents thus demanded payment of damages for the non-
delivery of the two checks. When FedEx refused to comply, Respondents filed an action
for damages against the former. During trial, FedEx argued that it cannot be held liable
for damages since respondents violated the prohibition in the airway bill against the
transportation of “money (including but not limited to coins or negotiable instruments
equivalent to cash such as endorsed stocks and bonds).”

Issue:

Whether or not negotiable instruments can be considered money?

Held:

No. Money is "what is generally acceptable in exchange for goods."55 It can take
many forms, most commonly as coins and banknotes. It is settled in jurisprudence that
checks, being only negotiable instruments, are only substitutes for money and are not
legal tender; more so when the check has a named payee and is not payable to bearer.
The Air Waybill's prohibition mentions "negotiable instruments" only in the course of
making an example. Thus, they are not prohibited items themselves. Moreover, the
illustrative example does not even pertain to negotiable instruments per se but to
"negotiable instruments equivalent to cash."