G.R. No. 191064 - People vs. Araneta y Abella

On July 8, 1992, Wyeth-Pharma GMBH shipped oral contraceptives on a KLM Royal Dutch Airlines flight from Dusseldorf, Germany, to Manila, consisting of 86,800 blisters of Femenal tablets, 14,000 blisters of Nordiol tablets, and 42,000 blisters of Trinordiol tablets.
The Femenal tablets were packed in 124 cartons, and the Nordiol tablets in 20 cartons, all consolidated in one LD3 aluminum container, while the Trinordiol tablets were shipped in two pallets of 30 cartons each.
The shipment was insured by Wyeth-Suaco Laboratories, Inc. with FGU Insurance under Marine Risk Note No. 4995 pursuant to Marine Open Policy No. 138.

The cargo arrived on July 11, 1992, at Ninoy Aquino International Airport (NAIA) and was discharged without exceptions.
The goods were delivered to the warehouse of Philippine Skylanders, Inc. (PSI) at NAIA for safekeeping.
Wyeth-Suaco engaged A.F. Sanchez Brokerage, Inc. (Sanchez Brokerage) as customs broker to secure release and manage the delivery of the shipment.
Sanchez Brokerage paid PSI a storage fee and received the goods in good condition, as acknowledged in the official receipt and delivery receipt signed by its representatives.

The cargoes were stripped from containers at NAIA and transported in two trucks hired by Sanchez Brokerage.
Employees of Elite Adjusters and Surveyors Inc., acting as adjusters on behalf of FGU Insurance, witnessed loading and delivery to Hizon Laboratories Inc. in Antipolo City for quality inspection.
Upon delivery on July 29, 1992, 44 cartons (41 Femenal, 3 Nordiol) were noted as wet and in bad order on the delivery receipt signed by a Wyeth-Suaco representative.
Elite Surveyors issued a survey report and certificate confirming the wetting of these cartons, with rain cited as a possible cause during delivery.
Hizon Laboratories issued a destruction report dated August 4, 1992, confirming water damage and foul odor in the specified cartons.
Wyeth-Suaco issued a Notice of Materials Rejection and later demanded P191,384.25 from Sanchez Brokerage as compensation for the damaged goods.

FGU Insurance paid Wyeth-Suaco P181,431.49 as settlement under the Marine Risk Note, receiving a subrogation receipt in return.
FGU Insurance then demanded payment from Sanchez Brokerage, which refused liability, alleging damage was due to improper packing and that wet cartons were noted before delivery, with instructions from Wyeth-Suaco to proceed despite the condition.
FGU Insurance filed a complaint for damages against Sanchez Brokerage before the Regional Trial Court (RTC) of Makati City.

The RTC dismissed the complaint, finding the survey report unreliable and based on guesswork.
The Court of Appeals reversed the RTC ruling, holding Sanchez Brokerage liable as a common carrier under Article 1732 of the Civil Code and presumed negligent unless it proved extraordinary diligence.
Sanchez Brokerage’s motion for reconsideration was denied.

Sanchez Brokerage filed a petition for certiorari to the Supreme Court, contesting the classification as a common carrier and the resultant liability.
FGU Insurance opposed, emphasizing the presumption of negligence based on evidence that cargo received in good order was delivered damaged.
The Supreme Court took up the case for resolution.

Whether A.F. Sanchez Brokerage, Inc., as a customs broker performing delivery services, qualifies as a common carrier under Article 1732 of the Civil Code.
Whether Sanchez Brokerage is liable for the damage to the cargo under the presumption of negligence applicable to common carriers.
Whether the appellate court erred in reversing the trial court's dismissal for lack of evidence and in imposing liability on Sanchez Brokerage.
Whether the petition for certiorari was the proper remedy to question the Court of Appeals’ decision or whether a petition for review on certiorari was the appropriate recourse.