Case Digest: F. G. U. Insurance vs. G. P. Sarmiento Trucking Corporation, 386 SCRA 312

F. G. U. Insurance vs. G. P. Sarmiento Trucking Corporation, 386 SCRA 312, August 6, 2002

Subject: Transportation Law

 

FACTS

G.P. Sarmiento Trucking Corporation (GPS) undertook to deliver thirty units of Condura white refrigerators aboard one of its Isuzu truck, driven by Lambert Eroles, from the plant site of Concepcion Industries, Inc., to the Central Luzon Appliances in Dagupan City. While the truck was traversing the north diversion road along McArthur highway, it collided with an unidentified truck, causing it to fall into a deep canal, resulting in damage to the cargoes.

FGU Insurance Corporation (FGU), an insurer of the shipment, paid to Concepcion Industries, Inc., the value of the covered cargoes. FGU, in turn, being the subrogee of the rights and interests of Concepcion Industries, Inc., sought reimbursement of the amount it had paid to the latter from GPS. Since the trucking company failed to heed the claim, FGU filed a complaint for damages and breach of contract of carriage against GPS and its driver Lambert Eroles with the Regional Trial Court, which dismissed the case on the basis that GPS is not a common carrier. Thus, the laws governing the contract between the owner of the cargo to whom the plaintiff was subrogated and the owner of the vehicle which transports the cargo are the laws on obligation and contract of the Civil Code as well as the law on quasi delicts.

ISSUE

Whether or not GPS is a common carrier.

RULING

No, GPS is a private carrier.

Under the law, common carriers are persons, corporations, firms or associations engaged in the business of carrying or transporting passengers or good or both, by land, water, or air, for compensation, offering their services to the public.

In this case, GPS being an exclusive contractor and hauler of Concepcion Industries, Inc., rendering or offering its services to no other individual or entity, cannot be considered a common carrier but rather a private carrier. The true test of a common carrier is the carriage of passengers or goods, providing space for those who opt to avail themselves of its transportation service for a fee. Given accepted standards, GPS scarcely falls within the term common carrier.