Title
Supreme Court
Federal Express Corp. vs. Antonino
Case
G.R. No. 199455
Decision Date
Jun 27, 2018
FedEx failed to deliver checks, claimed non-compliance with notice period; Supreme Court ruled FedEx liable, upheld damages due to lack of extraordinary diligence and substantial compliance.

Case Digest (G.R. No. 199455)
Expanded Legal Reasoning Model

Facts:

  • Parties and Case History
    • Petitioners: Federal Express Corporation (FedEx), a common carrier.
    • Respondents: Luwalhati R. Antonino and Eliza Bettina Ricasa Antonino, condominium owners in New York.
    • Procedural posture: Respondents obtained judgment in the Regional Trial Court (RTC) for damages due to non‐delivery of a package. The Court of Appeals (CA) affirmed. FedEx filed a Petition for Review on Certiorari under Rule 45 to the Supreme Court, challenging CA’s August 31, 2011 Decision and November 21, 2011 Resolution.
  • Underlying Shipment and Loss
    • In December 2003, respondents needed to pay US$9,742.81 in common charges (July–November 2003) and US$11,619.35 in real estate taxes for their New York condominium.
    • On December 15, 2003, respondents shipped Citibank checks totaling US$29,345.53 via FedEx (Account No. x2546-4948-1; Tracking No. 8442 4588 4268) addressed to their New York-based agent, Veronica Z. Sison, for onward payment to Maxwell-Kates, Inc. and the New York County Department of Finance.
    • Sison never received the package. Upon inquiry on February 9, 2004, FedEx claimed delivery to a neighbor without a signed receipt. No named recipient was identified.
  • Demand, Trial Court Decision, and Appellate Rulings
    • Respondents sent a written demand on March 14, 2004. FedEx refused, citing respondents’ failure to file a claim within 45 days and alleging prohibited shipment of negotiable instruments misdeclared as documents.
    • On April 5, 2004, respondents filed suit for damages. RTC Branch 217, Quezon City, ruled in their favor (May 8, 2008), awarding P200,000 moral damages, P100,000 exemplary damages, and P150,000 attorney’s fees; counterclaim dismissed.
    • CA denied FedEx’s appeal (August 31, 2011) and its motion for reconsideration (November 21, 2011), affirming that (a) substantial compliance with the 45-day notice period was established, (b) checks are not “money” or legal tender under the Air Waybill prohibition, and (c) ambiguities in an adhesive contract are construed against the carrier.

Issues:

  • Condition Precedent
    • Whether respondents complied with the Air Waybill condition requiring a formal written claim within 45 days of acceptance.
  • Carrier Liability and Duty of Care
    • Whether FedEx exercised the extraordinary diligence mandated of common carriers from receipt until delivery to the authorized consignee.
  • Prohibition Against Shipment of Money
    • Whether checks constitute “money (including … negotiable instruments equivalent to cash)” prohibited under FedEx’s Air Waybill, thereby absolving FedEx of liability.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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