FGU Insurance Corp. vs. GP Sarmiento Trucking Corp. and Lambert M.

Eroles

386 SCRA 312

Facts

Respondent GP Sarmiento Trucking Company (GTS) undertook to transport cargoes for Concepcion Industries Inc. when it collided
with an unidentified truck, causing damage to the cargoes. Petitioner, FGU, insurer of the shipment, paid to Concepcion Industries
the value of the covered cargoes. Then, as subrogee of Concepcion Industries Inc., petitioner FGU sued GPS for breach of contract
of carriage for reimbursement. Instead of filing an answer, GPS filed a demurrer to evidence, claiming that it could not be held liable
as a common carrier because it was only a private carrier, being the exclusive hauler only of Concepcion Industries Inc. since 1988.

The lower court granted the motion, ruling that plaintiff FGU failed to prove that GPS was a common carrier. The CA affirmed the
trial court's order

Issue

Whether or not GPS is considered a common carrier and may be presumed negligent and therefore liable for damages.

Ruling

The Supreme Court held that GPS cannot be considered a common carrier as it renders service exclusively to Concepcion
Industries; that notwithstanding, GPS cannot escape from liability since in culpa contractual, mere proof of the existence of the
contract and the failure of its compliance justify prima facie a corresponding right of relief. Respondent driver, however, who is not a
party to the contract of carriage, may not be held liable under the agreement without concrete proof of his negligence or fault.

Hence, the Supreme Court affirmed the assailed order of the trial court and the CA insofar as the respondent driver was concerned,
but GPS trucking company was ordered to pay the petitioner FGU the value of the damaged and lost cargoes.