FGU v. SARMIENTO 386 SCRA 312 Aug. 6 2002 Doctrine: In culpa contractual, the mere proof of the existence of the contract and the failure of its compliance justify a corresponding right of relief. The doctrine of res ipsa loquitur holds a defendant liable where the thing which caused the injury complained of is shown to be under the latter’s management and the accident is such that, in the ordinary course of things, cannot be expected to happen if those who have its management/control use proper care. FACTS: • G.P Sarmiento Trucking Corporation (GPS) delivered 20 units of Condura refrigerators using an Isuzu truck, driven by Lambert Eroles, from the plant of Concepcion Industries Inc. in Alabang to Dagupan City. • Along McArthur highway in Barangay Anupol, Bamban, Tarlac, 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 amounting to P204,450. • FGU sought reimbursement from GPS • There being no reply, FGU filed a complaint for damages and breach of contract of carriage against GPS and its driver Lambert Eroles with the RTC of Makati. • Respondents GPS filed a motion to dismiss, claiming that they were exclusive haulers only of Concepcion Industries and is not considered as a common carrier. • Trial court granted motion to dismiss since petitioners weren’t able to prove that it was a common carrier and failed to prove that the defendant was negligent. • • Petitioners appealed to Court of Appeals, which was later on rejected stating that the petitioner failed to prove that: o GPS is a common carrier o Carrier was negligent MR was denied, thus the petition ISSUE: 1. W/N GPS may be considered as a common carrier 2. W/N may be presumed to have been negligent in delivering the goods 3. W/N the doctrine of res ipsa loquitur is applicable HELD: 1. NO. GPS, being an exclusive contractor and hauler of Concepcion Industries Inc. offering services to no one else, cannot be considered a common carrier. Common carriers are persons, corporations, firms, or associations engaged in the business of carrying or transporting passengers or goods or both by land, water, or air for hire or compensation, offering their services to the public, and never exclusively. The test of a common carrier is the carriage of passenger or goods, making its space available for transportation service for a fee. 2. YES GPS cannot escape from liability. In culpa contractual, the mere proof of the existence of the contract & the failure of its compliance give rise to a suit for damages. The law will not allow a party to be free from liability for misperformace or contravention of any contract/ obligation. A failure of compliance with the obligation gives rise to a presumption of lack of care and corresponding liability on the part of the obligor. He has the burden of establishing otherwise. This GPS has failed to do. Eroles, on the other hand, may not be ordered to pay petitioner without concrete proof of his negligence/fault. The driver, not being a party to the contract of carriage between petitioner’s principal and defendant, may not be held liable under the agreement. A contract can only bind the parties who have entered into it or their successors who have assumed their personality/juridical position. Such contract can neither favor nor prejudice a third person. Petitioner’s civil action against the driver can only be based on culpa aquiliana, which would require the claimant for damages to prove the defendant’s negligence/fault. (c) the indicated negligence is within the scope of the defendant’s duty to the plaintiff. Thus, it is not applicable when an unexplained accident may be attributable to one of several causes, for some of which the defendant could not be responsible. On the other hand, while the truck driver can be said to have been in control & management of the vehicle, it is not equally shown that the accident has been exclusively due to his negligence. If it were so, the negligence could allow res ipsa loquitur to properly work against him. However, clearly this is not the case. WHEREFORE, order of RTC of Makati is affirmed only insofar as Lambert Elores is concerned. Its decision regarding GP Sarmiento Trucking Corp. is REVERSED and is orderd to pay FGU Insurance Corporation the value of the damaged and lost cargoes of P204,450. 3. NO Res ipsa loquitur1 holds a defendant liable where the thing which caused the injury complained of is shown to be under the latter’s management and that such accident would not have happened if the defendant used proper care. It is regarded as a mode of proof, or a procedural convenience since it serves as a substitute for the burden of producing specific proof of negligence. In other words, there is no more need to produce evidence since such negligence is already presumed given the circumstances. However, the doctrine is allowed only when: (a) the event is of a kind which does not ordinarily occur in the absence of negligence (b) other responsible causes are sufficiently eliminated by the evidence (includes the conduct of the plaintiff and third persons) 1 doctrine of law that one is presumed to be negligent if he/she/it had exclusive control of whatever caused the injury even though there is no specific evidence of an act of negligence, and without negligence the accident would not have happened NOTE: A suit for damages serves to preserve the interests of the promise. These interests include: Expectation interest – interest in having the benefit of his bargain by being put in as good a position as he would have been in had the contract been performed; Reliance interest – interest in being reimbursed for loss caused by reliance on the contract by being put in as good a position as he would have been in had the contract not been made; Restitution interest – interest in having restored to him any benefit that he has conferred on the other party.