insurance cases batch 1

8/12/2019 Insurance Cases Batch 1

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1.) G.R. No. L-8151. December 16, 1955.]

VIRGINIA CALANOC,Petitioner, v. COURT OF A!AL" #$% T&!&ILIIN! A'!RICAN LIF! IN"URANC! CO.,Respondents.L(co *#v++o$#r orPetitioner.

*.A. o+o$, '#$(e+ /. 'ec#, !m+o Abe++o #$% A$e+mo A.Re0e, orRespondents.

"/LLAU"

1. INSURANCE LAW; ACCIDENTAL DEATH; AMBIGUOUS TERMS IN INSURANCE POLICY;HOW CONSTRUED. While as a gee!al !"le #$he %a!$ies &a' li&i$ $he ()*e!age )+$he %)li(' $) (e!$ai %a!$i("la! a((i,e$s a, !is-s )! (a"ses )+ less a, &a'e/%!essl' e/(e%$ )$he! !is-s )! (a"ses )+ l)ss $he!e+!) 02 C. 3. S 45164578h)9e*e! i$ is $) :e ,esi!e, $ha$ $he $e!&s a, %h!ase)l)g' )+ $he e/(e%$i) (la"se:e (lea!l' e/%!esse, s) as $) :e 9i$hi $he eas' g!as% a, ",e!s$a,ig )+ $heis"!e, +)! i+ $he $e!&s a!e ,)":$+"l )! ):s("!e $he sa&e &"s$ )+ e(essi$' :ei$e!%!e$e, )! !es)l*e, agais$ $he )e 9h) has (a"se, $he ):s("!i$'. 0A!$i(le 144e9 Ci*il C),e.8 A, s) i$ has :ee gee!all' hel, $ha$ $he #$e!&s i a is"!a(e%)li(' 9hi(h a!e a&:ig")"s e A&. 3"!. 1518 a, $he !eas) +)! $his !"le is $ha$$he #is"!e, "s"all' has ) *)i(e i $he sele($i) )! a!!age&e$ )+ $he 9)!,se&%l)'e, a, $ha$ $he lag"age )+ $he ()$!a($ is sele($e, 9i$h g!ea$ (a!e a,,eli:e!a$i) :' e/%e!$s a, legal a,*ise!s e&%l)'e, :' a, a($ig e/(l"si*el' i $hei$e!es$ )+ $he is"!a(e ()&%a'.# 0 C. 3. S. %. 114.8

D E C I S I O N

BAUTISTA ANGELOJ.?

This s"i$ i*)l*es $he ()lle($i) )+ P7@@@ !e%!ese$ig $he *al"e )+ a s"%%le&e$al%)li(' ()*e!ig a((i,e$al ,ea$h 9hi(h 9as se("!e, :' )e Mele(i) Basili) +!)& $hePhili%%ie A&e!i(a Li+e Is"!a(e C)&%a'. The (ase )!igia$e, i $he M"i(i%alC)"!$ )+ Maila a, ",g&e$ :eig +a*)!a:le $) $he %lai$i= i$ 9as a%%eale, $) $he()"!$ )+ !s$ is$a(e. The la$$e! ()"!$ a!&e, $he ",g&e$ :"$ ) a%%eal $) $heC)"!$ )+ A%%eals $he ",g&e$ 9as !e*e!se, a, $he (ase is )9 :e+)!e "s ) a%e$i$i) +)! !e*ie9.

Mele(i) Basili) 9as a 9a$(h&a )+ $he Maila A"$) S"%%l' l)(a$e, a$ $he ()!e! )+A*ei,a Rial a, "!:a!a. He se("!e, a li+e is"!a(e %)li(' +!)& $he Phili%%ieA&e!i(a Li+e Is"!a(e C)&%a' i $he a&)"$ )+ P7@@@ $) 9hi(h 9as a$$a(he, as"%%le&e$a!' ()$!a($ ()*e!ig ,ea$h :' a((i,e$. O 3a"a!' 72 1>21 he ,ie, )+a g"sh)$ 9)", ) $he )((asi) )+ a !)::e!' ()&&i$$e, i $he h)"se )+ A$$'. Oe,aa$ $he ()!e! )+ O!)


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+)ll)9s?g(?(ha!):les.()&.%h

#The (i!("&s$a(es s"!!)",ig $he ,ea$h )+ Mele(i) Basili) sh)9 $ha$ 9he he 9as-ille, a$ a:)"$ se*e )(l)(- i $he igh$ )+ 3a"a!' 72 1>21 he 9as ) ,"$' as9a$(h&a )+ $he Maila A"$) S"%%l' a$ $he ()!e! )+ A*ei,a Rial a, "!:a!a;$ha$ i$ $"!e, )"$ $ha$ A$$'. A$)i) Oe,a 9h) ha, his !esi,e(e a$ $he ()!e! )+"!:a!a a, O!)


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We ,isse$ +!)& $he a:)*e ,igs )+ $he C)"!$ )+ A%%eals. )! )e $hig Basili)9as a 9a$(h&a )+ $he Maila A"$) S"%%l' 9hi(h 9as a :l)(- a9a' +!)& $he h)"se )+A$$'. Oe,a 9he!e s)&e$hig s"s%i(i)"s 9as ha%%eig 9hi(h (a"se, $he la$$e! $)as- +)! hel%. While a$ !s$ he ,e(lie, $he i*i$a$i) )+ A$$'. Oe,a $) g) 9i$h hi& $)his !esi,e(e $) i


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%"!(hase is"!a(e ()s$!"e e*e!' a&:ig"i$' i +a*)! )+ $he is"!e,.# 0Alg)e *.Pa(i( M"$. L. Is. C). >1 Wash. 7 LRA 1>14A 174.8

#A is"!e! sh)"l, )$ :e all)9e, :' $he "se )+ ):s("!e %h!ases a, e/(e%$i)s $),e+ea$ $he *e!' %"!%)se +)! 9hi(h $he %)li(' 9as %!)("!e,.# 0M))!e *. Ae$a Li+eIs"!a(e C). LRA 1>12D 7.8

We a!e $he!e+)!e %e!s"a,e, $) ()(l",e $ha$ $he (i!("&s$a(es "+)l,e, i $he%!ese$ (ase ,) )$ 9a!!a$ $he ,ig $ha$ $he ,ea$h )+ $he "+)!$"a$e *i($i&

()&es 9i$hi $he %"!*ie9 )+ $he e/(e%$i) (la"se )+ $he s"%%le&e$a!' %)li(' a,he(e ,) )$ e/e&%$ $he ()&%a' +!)& lia:ili$'.Whe!e+)!e !e*e!sig $he ,e(isi) a%%eale, +!)& 9e he!e:' )!,e! $he ()&%a' $)%a' %e$i$i)e!6a%%ella$ $he a&)"$ )+ P7@@@ 9i$h legal i$e!es$ +!)& 3a"a!' 71>21 "$il +"ll' %ai, 9i$h ()s$s.

2.3G.R. No. L-25549. '#rc 29, 1942.]!'ILIA T. IAGTAN, *UAN T. IAGTAN, *R., 'IGU!L T. IAGTAN,GIL T. IAGTAN #$% GRACIA T. IAGTAN,Plaintifs-Appellees, v.T&! IN"ULAR LIF! A""URANC! CO'AN/, LTD.,Deendant-Appellant.T#$oo, '++or#, "er#7c# "#e: or +#$;


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:e sai, $ha$ $he -illig 9as i$e$i)al +)! $he!e 9as $he %)ssi:ili$' $ha$ $he&ale+a($)! ha, !e, $he sh)$ $) s(a!e $he %e)%le a!)", +)! his )9 %!)$e($i) a,)$ e(essa!il' $) -ill )! hi$ $he *i($i&. A si&ila! %)ssi:ili$' is (lea!l' !"le, )"$ :' $he+a($s i $he (ase )9 :e+)!e Us. )! 9hile a sigle sh)$ !e, +!)& a ,is$a(e a, :'a %e!s) 9h) 9as )$ e*e see ai&ig a$ $he *i($i& ()"l, i,ee, ha*e :ee !e,9i$h)"$ i$e$ $) -ill )! i"!e ie 9)",s iKi($e, 9i$h :la,e, 9ea%)s a$ (l)se!age (a)$ ()(ei*a:l' :e ()si,e!e, as i)(e$ is)+a! as s"(h i$e$ is()(e!e,. The &ae! )+ e/e("$i) )+ $he (!i&e %e!&i$s ) )$he! ()(l"si).

. ID.; ID.; ID.; INTENTIONAL CONSTRUED IN AMERICAN 3URISDICTION. I$ has :eehel, i A&e!i(a "!is,i($i) $ha$ #i$e$i)al# as "se, i a a((i,e$ %)li('e/(e%$ig i$e$i)al i"!ies iKi($e, :' $he is"!e, )! a' )$he! %e!s) e$(.i&%lies $he e/e!(ise )+ $he !eas)ig +a("l$ies ()s(i)"sess a, *)li$i).

2. ID.; ID.; ID.; INTENTION O PARTIES CONTROLLING; AMERICAN 3URISPRUDENCE. Whe!e a %!)*isi) )+ $he %)li(' e/(l",es i$e$i)al i"!' i$ is $he i$e$i) )+ $he%e!s) iKi($ig $he i"!' $ha$ is ()$!)llig.

. ID.; ID.; ID.; IN3URIES INTENTIONAL; INSURER RELIEFED ROM LIABILITY. I+ $hei"!ies s"=e!e, :' $he is"!e, (lea!l' !es"l$e, +!)& $he i$e$i)al a($ )+ a $hi!,%a!$' $he is"!e! is !elie*e, +!)& lia:ili$'.

4. ID.; ID.; ID.; ID.; CASE O HUCTHCRATS EJR *. TRAFELERS INS. CO. I $he(ase )+ H"($h(!a+$s E/! *. T!a*ele!s Is. C). 9he!e $he is"!e, 9as 9a'lai, a,assassia$e, +)! $he %"!%)se )+ !)::e!' $he ()"!$ !e,e!e, ",g&e$ +)! $heis"!a(e ()&%a' a, hel, $ha$ 9hile $he assassia$i) )+ $he is"!e, 9as as $)hi& a "+)!esee e*e$ a, $he!e+)!e a((i,e$al #$he (la"se )+ $he %!)*is) $ha$e/(l",es $he 0is"!e!s8 lia:ili$' i (ase ,ea$h )! i"!' is i$e$i)all' iKi($e, :'a' )$he! %e!s) a%%lies $) $his (ase.#

D E C I S I O N

MAALINTALJ.?

This is a a%%eal +!)& $he ,e(isi) )+ $he C)"!$ )+ i!s$ Is$a(e )+ Pagasia i i$sCi*il Case N). D614@@.

The +a($s a!e s$i%"la$e,. 3"a S. Biag$a 9as is"!e, 9i$h ,e+e,a$ Is"la! Li+eAss"!a(e C)&%a' ",e! P)li(' N). >5@42 +)! $he s"& )+ P2@@@.@@ a, ",e! as"%%le&e$a!' ()$!a($ ,e)&ia$e, #A((i,e$al Dea$h Bee$ Cla"se +)! aa,,i$i)al s"& )+ P2@@@.@@ i+ #$he ,ea$h )+ $he Is"!e, !es"l$e, ,i!e($l' +!)& :),il'i"!' e=e($e, s)lel' $h!)"gh e/$e!al a, *i)le$ &eas s"s$aie, i a a((i,e$ . . .a, i,e%e,e$l' )+ all )$he! (a"ses.# The (la"se h)9e*e! e/%!essl' %!)*i,e, $ha$i$ 9)"l, )$ a%%l' 9he!e ,ea$h !es"l$e, +!)& a i"!' #i$e$i)all' iKi($e, :' a$hi!, %a!$'.#(!ala9 *i!$"a1a9 li:!a!'

O $he igh$ )+ Ma' 7@ 1> )! ,"!ig $he !s$ h)"!s )+ $he +)ll)9ig ,a' a :a, )+!)::e!s e$e!e, $he h)"se )+ $he is"!e, 3"a S. Biag$a. Wha$ ha%%ee, $he is!ela$e, i $he ,e(isi) )+ $he $!ial ()"!$ as +)ll)9s?g(?(ha!):les.()&.%h

#. . .; $ha$ ) $he igh$ )+ Ma' 7@ 1> )! $he !s$ h)"!s )+ Ma' 71 1> 9hile $hesai, li+e %)li(' a, s"%%le&e$a!' ()$!a($ 9e!e i +"ll +)!(e a, e=e($ $he h)"se )+is"!e, 3"a S. Biag$a 9as !)::e, :' a :a, )+ !)::e!s 9h) 9e!e (ha!ge, i a,()*i($e, :' $he C)"!$ )+ i!s$ Is$a(e )+ Pagasia +)! !)::e!' 9i$h h)&i(i,e; $ha$i ()&&i$$ig $he !)::e!' $he !)::e!s ) !ea(hig $he s$ai!(ase la,ig )+ $hese(), K))! !"she, $)9a!,s $he ,))!s )+ $he se(), K))! !))& 9he!e $he's",,el' &e$ a %e!s) ea! $he ,))! )+ )e )+ $he !))&s 9h) $"!e, )"$ $) :e $heis"!e, 3"a S. Biag$a 9h) !e(ei*e, $h!"s$s +!)& $hei! sha!%6%)i$e, is$!"&e$s

5


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(a"sig 9)",s ) $he :),' )+ sai, 3"a S. Biag$a !es"l$ig i his ,ea$h a$ a:)"$ 4a.&. ) $he sa&e ,a' Ma' 71 1>;#

Plai$i=s as :ee(ia!ies )+ $he is"!e, le, a (lai& ",e! $he %)li('. The is"!a(e()&%a' %ai, $he :asi( a&)"$ )+ P2@@@.@@ :"$ !e+"se, $) %a' $he a,,i$i)al s"&)+ P2@@@.@@ ",e! $he a((i,e$al ,ea$h :ee$ (la"se ) $he g!)", $ha$ $heis"!e,s ,ea$h !es"l$e, +!)& i"!ies i$e$i)all' iKi($e, :' $hi!, %a!$ies a,$he!e+)!e 9as )$ ()*e!e,. Plai$i=s le, s"i$ $) !e()*e! a, a+$e! ,"e hea!ig $he()"!$ a


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!"le, )"$ :' $he +a($s i $he (ase )9 :e+)!e Us. )! 9hile a sigle sh)$ !e, +!)& a,is$a(e a, :' a %e!s) 9h) 9as )$ e*e see ai&ig a$ $he *i($i& ()"l, i,ee,ha*e :ee !e, 9i$h)"$ i$e$ $) -ill )! i"!e ie 9)",s iKi($e, 9i$h :la,e,9ea%)s a$ (l)se !age (a)$ ()(ei*a:l' :e ()si,e!e, as i)(e$ is)+a! ass"(h i$e$ is ()(e!e,. The &ae! )+ e/e("$i) )+ $he (!i&e %e!&i$s ) )$he!()(l"si).

C)"!$ ,e(isi)s i $he A&e!i(a "!is,i($i) 9he!e si&ila! %!)*isi)s i a((i,e$al,ea$h :ee$ (la"ses i is"!a(e %)li(ies ha*e :ee ()s$!"e, &a' she, ligh$ )

$he iss"e :e+)!e Us. Th"s i$ has :ee hel, $ha$ #i$e$i)al# as "se, i a a((i,e$%)li(' e/(e%$ig i$e$i)al i"!ies iKi($e, :' $he is"!e, )! a' )$he! %e!s) e$(.i&%lies $he e/e!(ise )+ $he !eas)ig +a("l$ies ()s(i)"sess a, *)li$i). 1 Whe!e a%!)*isi) )+ $he %)li(' e/(l",es i$e$i)al i"!' i$ is $he i$e$i) )+ $he %e!s)iKi($ig $he i"!' $ha$ is ()$!)llig. 7 I+ $he i"!ies s"=e!e, :' $he is"!e, (lea!l'!es"l$e, +!)& $he i$e$i)al a($ )+ a $hi!, %e!s) $he is"!e! is !elie*e, +!)& lia:ili$'as s$i%"la$e,.

I $he (ase )+ H"$(h(!a+$s E/!. *. T!a*ele!s Is. C). 54 '. @@ 5 S.W. 24@ 17 A&.S$. Re%. 5 $he is"!e, 9as 9a'lai, a, assassia$e, +)! $he %"!%)se )+ !)::e!'.

T9) 078 ,e+eses 9e!e i$e!%)se, $) $he a($i) $) !e()*e! i,e&i$' a&el'? 018 $ha$$he is"!e, ha*ig :ee -ille, :' i$e$i)al &eas his ,ea$h 9as )$ a((i,e$ala, 078 $ha$ $he %!)*is) i $he %)li(' e/%!essl' e/e&%$e, $he is"!e! +!)& lia:ili$' i

(ase $he is"!e, ,ie, +!)& i"!ies i$e$i)all' iKi($e, :' a)$he! %e!s). I!e,e!ig ",g&e$ +)! $he is"!a(e ()&%a' $he C)"!$ hel, $ha$ 9hile $heassassia$i) )+ $he is"!e, 9as as $) hi& a "+)!esee e*e$ a, $he!e+)!ea((i,e$al #$he (la"se )+ $he %!)*is) #$ha$ e/(l",es $he 0is"!e!s8 lia:ili$' i (ase,ea$h )! i"!' is i$e$i)all' iKi($e, :' a' )$he! %e!s) a%%lies $) $his(ase.#(!ala9 *i!$"a1a9 li:!a!'

I B"$e!) *. T!a*ele!s A((. Is. C). > Wis. 2 2 A&. S$. Re%. 1 41 S.W. 511 $heis"!e, 9as sh)$ $h!ee $i&es :' a %e!s) "-)9 la$e ) a ,a!- a, s$)!&' igh$9hile 9)!-ig i $he ()al she, )+ a !ail!)a, ()&%a'. The %)li(' ,i, )$ ()*e! ,ea$h!es"l$ig +!)& #i$e$i)al i"!ies iKi($e, :' $he is"!e, )! a' )$he! %e!s).# Thei


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%a!$' )! a' "a*)i,a:le (i!("&s$a(e )!&all' "+)!esee :' $he is"!e, a, +!ee+!)& a' %)ssi:le ()i*a(e ) his %a!$ is a a((i,e$ i $he gee!all' a((e%$e,sese )+ $he $e!&. A, i+ I 9e!e ()*i(e, $ha$ i i(l",ig i $he %)li(' $he %!)*isi)i


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:),' ,!)9ig a, i$e!al i"!ies !e*eale, :' a"$)%s' e/(e%$e,?(ha!):1es*i!$"al 1a9 li:!a!'

028 A' i"!ies !e(ei*e, 0a8 9hile ) %)li(e ,"$' i a' &ili$a!' a*al )! %)li(e)!gaia$i); 0:8 i a' !i)$ (i*il ()&&)$i) is"!!e($i) )! 9a! )! a' a($ i(i,e$$he!e$); 0(8 9hile $!a*ellig as a %assege! )! )$he!9ise i a' +)!& )+ s":&a!ie$!as%)!$a$i) )! 9hile egagig i s":&a!ie )%e!a$i)s; 0,8 i a' *i)la$i) )+ $hela9 :' $he Is"!e, )! assa"l$ %!)*)-e, :' $he Is"!e,; 0e8 $ha$ has :ee iKi($e,i$e$i)all' :' a $hi!, %a!$' ei$he! 9i$h )! 9i$h)"$ %!)*)(a$i) ) $he %a!$ )+ $he

Is"!e, a, 9he$he! )! )$ $he a$$a(- )! $he ,e+ese :' $he $hi!, %a!$' 9as (a"se,:' a *i)la$i) )+ $he la9 :' $he Is"!e,;

08 O%e!a$ig )! !i,ig i )! ,es(e,ig +!)& a' -i, )+ ai!(!a+$ i+ $he Is"!e, is a%il)$ )(e! )! &e&:e! )+ $he (!e9 )+ $he ai!(!a+$ )! is gi*ig )! !e(ei*ig a' -i, )+$!aiig )! is$!"($i) )! has a' ,"$ies a:)a!, $he ai!(!a+$ )! !e


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is"!e, +)! &"(h la!ge! s"&s ",e! si&ila! ()$!a($s 9i$h a((i,e$al ,ea$h :ee$%!)*isi)s ha*e %!)&%$l' %ai, $he :ee$s $he!e",e! $) %lai$i=s6:ee(ia!ies; 078$he !)::e!s 9h) (a"se, $he is"!e,s ,ea$h 9e!e (ha!ge, i a, ()*i($e, :' $heC)"!$ )+ i!s$ Is$a(e )+ Pagasia +)! $he (!i&e )+ !)::e!' 9i$h h)&i(i,e; a, 08$he i"!ies iKi($e, ) $he is"!e, :' $he !)::e!s ()sis$e, )+ *e &)!$al a, +)"!)6&)!$al 9)",s.

The l)9e! ()"!$ $he!ea+$e! !e,e!e, ",g&e$ agais$ ,e+e,a$ as +)ll)9s?

#The!e is ) ,)":$ $ha$ $he is"!e, 3"a S. Biag$a &e$ his ,ea$h as a !es"l$ )+ $he9)",s iKi($e, "%) hi& :' $he &ale+a($)!s ) $he ea!l' &)!ig )+ Ma' 71 1>:' &eas )+ $h!"s$s +!)& sha!%6%)i$e, is$!"&e$s ,eli*e!e, "%) his %e!s) a,$he!e is li-e9ise )


11/85

#The C)"!$ )+ A%%eals a!!i*e, a$ $he ()(l"si) $ha$ $he ,ea$h )+ Basili) al$h)"gh"e/%e($e, 9as )$ (a"se, :' a a((i,e$ :eig a *)l"$a!' a, i$e$i)al a($ )$he %a!$ )+ $he )e 9h) !)::e, )! )e )+ $h)se 9h) !)::e, $he h)"se )+ A$$'. Oe,a.

#I !e*e!sig $his ()(l"si) )+ $he C)"!$ )+ A%%eals $he S"%!e&e C)"!$ sai, i%a!$?(ha!):1es *i!$"al 1a9 li:!a!'

. . . N)! (a i$ :e sai, $ha$ $he -illig 9as i$e$i)al +)! $he!e is $he %)ssi:ili$' $ha$$he &ale+a($)!s ha, !e, $he sh)$ &e!el' $) s(a!e a9a' $he %e)%le a!)", +)! his

)9 %!)$e($i) a, )$ e(essa!il' $) -ill )! hi$ $he *i($i&. I a' e*e$ 9hile $he a($&a' )$ e/e&%$ $he $!igge!&a +!)& lia:ili$' +)! $he ,a&age ,)e $he +a($ !e&ais$ha$ $he ha%%eig 9as a %"!e a((i,e$ ) $he %a!$ )+ $he *i($i&.

#Wi$h $his !"lig )+ $he S"%!e&e C)"!$ a, $he "$$e! a:se(e )+ e*i,e(e i $his (aseas $) $he !eal i$e$i) )+ $he &ale+a($)!s i &a-ig a $h!"s$ 9i$h $hei! sha!%6%)i$e,is$!"&e$ ) a' %e!s) $he *i($i& i %a!$i("la! $he (ase +alls s


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sai, $ha$ $he -illig 9as i$e$i)al +)! $he!e is $he %)ssi:ili$' $ha$ $he &ale+a($)! ha,!e, $he sh)$ &e!el' $) s(a!e a9a' $he %e)%le a!)", +)! his )9 %!)$e($i) a, )$e(essa!il' $) -ill )! hi$ $he *i($i&. I a' e*e$ 9hile $he a($ &a' )$ e/e&%$ $he$!igge!&a +!)& lia:ili$' +)! $he ,a&age ,)e $he +a($ !e&ais $ha$ $he ha%%eig9as a %"!e a((i,e$ ) $he %a!$ )+ $he *i($i&. The *i($i& ()"l, ha*e :ee ei$he! $he%)li(e&a )! A$$'. Oe,a +)! i$ (a)$ :e %!e$e,e, $ha$ $he &ale+a($)! ai&e, a$ $he,e(ease, %!e(isel' :e(a"se he 9a$e, $) $a-e his li+e.# 4

7. De+e,a$ ()&%a' %a$e$l' +aile, $) ,is(ha!ge i$s :"!,e )+ %!)*ig $ha$ $he +a$al

i"!ies 9e!e iKi($e, "%) $he ,e(ease, i$e$i)all' i.e. ,eli:e!a$el'. The l)9e!()"!$ ()!!e($l' hel, $ha$ si(e $he (ase 9as s":&i$$e, "%) $he %a!$ies s$i%"la$i) )++a($s 9hi(h ,i, )$ ()*e! $he &ale+a($)!s i$e$ a$ all $he!e 9as a #"$$e! a:se(e)+ e*i,e(e i $his (ase as $) $he !eal i$e$i) )+ $he &ale+a($)!s i &a-ig a $h!"s$9i$h $hei! sha!%6%)i$e, is$!"&e$0s8 ) a' %e!s) $he *i($i& i %a!$i("la!.# !)&$he ",is%"$e, +a($s s"%!a 5 $he !)::e!s ha, #!"she, $)9a!,s $he ,))!s )+ $hese(), K))! !))& 9he!e $he' s",,el' &e$ a %e!s) . . . 9h) $"!e, )"$ $) :e $heis"!e, 3"a S. Biag$a 9h) !e(ei*e, $h!"s$s +!)& $hei! sha!%6%)i$e, is$!"&e$s.#

The $h!"s$s 9e!e i,ee, %!)%e!l' $e!&e, #%"!el' a((i,e$al# si(e $he' see&e, $) :ea !eKe/ a($i) ) $he !)::e!s %a!$ "%) $hei! :eig s"!%!ise, :' $he ,e(ease,. T)a!g"e as ,e+e,a$ ,)es $ha$ $he !)::e!s i$e$ $) -ill &"s$ e(essa!il' :e ,e,"(e,+!)& $he +)"! &)!$al 9)",s iKi($e, "%) $he ,e(ease, is $) :eg $he


13/85

i,e&i$' )! %a'&e$ $) $he is"!e, es%e(iall' 9he!e a +)!+ei$"!e is i*)l*e, 07>AM. 3"!. 1518 a, $he !eas) +)! $his !"le is $ha$ $he is"!e, "s"all' has ) *)i(e i$he sele($i) )! a!!age&e$ )+ $he 9)!,s e&%l)'e, a, $ha$ $he lag"age )+ $he()$!a($ is sele($e, 9i$h g!ea$ (a!e a, ,eli:e!a$i) :' e/%e!$s a, legal a,*ise!se&%l)'e, :' a, a($ig e/(l"si*el' i $he i$e!es$ )+ $he is"!a(e ()&%a'. 0C.3.S. %. 1148

#Is"!a(e is i i$s a$"!e ()&%le/ a, ,i("l$ +)! $he la'&a $) ",e!s$a,.P)li(ies a!e %!e%a!e, :' e/%e!$s 9h) -)9 a, (a a$i(i%a$e $he :ea!ig a,

%)ssi:le ()&%li(a$i)s )+ e*e!' ()$ige('. S) l)g as is"!a(e ()&%aies isis$"%) $he "se )+ a&:ig")"s i$!i(a$e a, $e(hi(al %!)*isi)s 9hi(h ()(eal !a$he!$ha +!a-l' ,is(l)se $hei! )9 i$e$i)s $he ()"!$s &"s$ i +ai!ess $) $h)se 9h)%"!(hase is"!a(e ()s$!"e e*e!' a&:ig"i$' i +a*)! )+ $he is"!e,. 0Alg)e *. Pa(i(M"$. L. Is. C). >1 Wash. 7 LRA 1>14A 174.8

#A is"!e! sh)"l, )$ :e all)9e, :' $he "se )+ ):s("!e %h!ases a, e/(e%$i)s $),e+ea$ $he *e!' %"!%)se +)! 9hi(h $he %)li(' 9as %!)("!e,. 0M))!e *. Ae$a Li+eIs"!a(e C). LRA 1>12D 18.# 17

The C)"!$ has :"$ !e(e$l' !ei$e!a$e, $his ,)($!ie i La,i(h) *. GSIS 1 a, agaia%%lie, $he %!)*isi)s )+ A!$i(le 144 )+ )"! Ci*il C),e $ha$ #The i$e!%!e$a$i) )+):s("!e 9)!,s )! s$i%"la$i)s i a ()$!a($ shall )$ +a*)! $he %a!$' 9h) (a"se, $he

):s("!i$'.#

2. The a((i,e$al ,ea$h :ee$ (la"se ass"!ig $he is"!e,s :ee(ia!ies )+ ,)":lei,e&i$' "%) %a'&e$ )+ a e/$!a %!e&i"& i $he e*e$ $ha$ $he is"!e, &ee$s*i)le$ a((i,e$al ,ea$h is ()$!a($"all' s$i%"la$e, as +)ll)9s i $he %)li('? #$ha$ $he,ea$h )+ $he is"!e, !es"l$e, ,i!e($l' +!)& :),il' i"!' e=e($e, s)lel' $h!)"ghe/$e!al a, *i)le$ &eas s"s$aie, i a a((i,e$# s"%!a. The %)li(' $he lis$s"&e!)"s e/(e%$i)s 9hi(h &a' :e (lassie, as +)ll)9s?(ha!):1es *i!$"al 1a9li:!a!'

I"!ies e=e($e, $h!)"gh )6e/$e!al &eas 9hi(h a!e e/(e%$e,? sel+6,es$!"($i):),il' )! &e$al i!&i$' )! ,isease %)is)ig )! i+e($i) i"!ies 9i$h ) *isi:le()$"si)s )! e/$e!i)! 9)",s 0e/(e%$i)s 1 $) )+ %)li(' (la"se8;

I"!ies (a"se, :' s)&e a($ )+ $he is"!e, 9hi(h is %!)s(!i:e, :' $he %)li(' a,a!e $he!e+)!e si&ila!l' e/(e%$e,? i"!ies !e(ei*e, 9hile ) %)li(e ,"$' 9hile$!a*ellig i a' +)!& )+ s":&a!ie $!as%)!$a$i) )! i a' *i)la$i) )+ la9 :' $heis"!e, )! assa"l$ %!)*)-e, :' $he is"!e, )! i a' ai!(!a+$ i+ $he is"!e, is a %il)$ )!(!e9 &e&:e!; e/(e%$i)s 2 0a8 0(8 a, 0,8 a, )+ $he %)li(' (la"se; a,

A((i,e$s e/%!essl' e/(l",e,? 9he!e ,ea$h !es"l$e, i a' !i)$ (i*il ()&&)$i)is"!!e($i) )! 9a! )! a$)&i( ee!g' e/%l)si). 0E/(e%$i)s 2: a, 4 )+ %)li('(la"se8.

The )l' e/(e%$i) 9hi(h is )$ s"s(e%$i:le )+ (lassi(a$i) is $ha$ %!)*i,e, i%a!ag!a%h 20e8 $he *e!' e/(e%$i) he!ei i*)l*e, 9hi(h 9)"l, als) e/(e%$ i"!ies

#iKi($e, i$e$i)all' :' a $hi!, %a!$' ei$he! 9i$h )! 9i$h)"$ %!)*)(a$i) ) $he %a!$)+ $he is"!e, a, 9he$he! )! )$ $he a$$a(- )! $he ,e+ese :' $he $hi!, %a!$' 9as(a"se, :' a *i)la$i) )+ $he la9 :' $he is"!e,.#

This a&:ig")"s (la"se ()Ki($s 9i$h all $he )$he! +)"! e/(e%$i)s i $he sa&e%a!ag!a%h 2 %a!$i("la!l' $ha$ i&&e,ia$el' %!e(e,ig i$ i i$e& 0,8 9hi(h e/(e%$si"!ies !e(ei*e, 9he!e $he is"!e, has *i)la$e, $he la9 )! %!)*)-e, $he i"!' 9hile$his (la"se ()s$!"e, as $he is"!a(e ()&%a' )9 (lai&s 9)"l, see&igl' e/(e%$als) all )$he! i"!ies i$e$i)all' iKi($e, :' a $hi!, %a!$' !ega!,less )+ a'*i)la$i) )+ la9 )! %!)*)(a$i) :' $he is"!e, a, ,e+ea$ $he *e!' %"!%)se )+ $he%)li(' )+ gi*ig $he is"!e, ,)":le i,e&i$' i (ase )+ a((i,e$al ,ea$h :' #e/$e!al

13


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a, *i)le$ &eas# i $he *e!' lag"age )+ $he %)li('.

I$ is ):*i)"s +!)& $he *e!' (lassi(a$i) )+ $he e/(e%$i)s a, a%%l'ig $he !"le )+)s(i$"s a s)(iis $ha$ $he ,)":le6i,e&i$' %)li(' ()*e!s $he is"!e, agais$a((i,e$al ,ea$h 9he$he! (a"se, :' +a"l$ eglige(e )! i$e$ )+ a $hi!, %a!$' 9hi(his "+)!esee a, "e/%e($e, :' $he is"!e,. All $he ass)(ia$e, 9)!,s a, ()(e%$si $he %)li(' %lail' e/(l",e $he a((i,e$al ,ea$h +!)& $he ()*e!age )+ $he %)li(' )l'9he!e $he i"!ies a!e sel+6iKi($e, )! a$$e,e, :' s)&e %!)s(!i:e, a($ )+ $he is"!e,)! a!e i("!!e, i s)&e e/%!essl' e/(l",e, (ala&i$' s"(h as !i)$ 9a! )! a$)&i(

e/%l)si).

iall' $he "$ea:ili$' )+ he!ei ,e+e,a$ is"!e!s (lai& $ha$ $he is"!e,s ,ea$h+ell 9i$hi $he e/(e%$i) is +"!$he! heigh$ee, :' $he s$i%"la$e, +a($ $ha$ $9) )$he!is"!a(e ()&%aies 9hi(h li-e9ise ()*e!e, $he is"!e, +)! &"(h la!ge! s"&s ",e!si&ila! a((i,e$al ,ea$h :ee$ (la"ses %!)&%$l' %ai, $he :ee$s $he!e)+ $)%lai$i=s :ee(ia!ies.

I *)$e a(()!,igl' +)! $he a!&a(e i $)$) )+ $he a%%eale, ,e(isi) 9i$h ()s$sagais$ ,e+e,a$6a%%ella$.

=.G.R. No. 1>>94>. "e;ember 2, 1992.]

FIN'AN G!N!RAL A""URANC! CORORATION,Petitioner, v. T&!&ONORAL! COURT OF A!AL" #$% *ULIA"URO"A,Respondents.A?($o #$% Aoc#;e orPetitioner.(b+c A;;or$e0@ Oce orPrivate Respondent.

SYLLABUS

1. COMMERCIAL LAW; INSURANCE; ACCIDENT AND ACCIDENTAL; DEINED. #The$e!&s a((i,e$ a, a((i,e$al as "se, i is"!a(e ()$!a($s ha*e )$ a( 01>8.

7. ID.; ID.; PRINCIPLE O EJPRESSO UNIUS EJCLUSIO ALTERIUS; APPLICATION IN CASEAT BAR. The %e!s)al a((i,e$ is"!a(e %)li(' i*)l*e, he!ei s%e(i(all'e"&e!a$e, )l' $e 01@8 (i!("&s$a(es 9he!ei ) lia:ili$' a$$a(hes $) %e$i$i)e!is"!a(e ()&%a' +)! a' i"!' ,isa:ili$' )! l)ss s"=e!e, :' $he is"!e, as a !es"l$)+ a' )+ $he s$i%"la$e, (a"ses. The %!i(i%le )+ #e/%!ess) "i"s e/(l"si) al$e!i"s# $he &e$i) )+ )e $hig i&%lies $he e/(l"si) )+ a)$he! $hig is $he!e+)!ea%%li(a:le i $he is$a$ (ase si(e &"!,e! a, assa"l$ )$ ha*ig :ee e/%!essl'i(l",e, i $he e"&e!a$i) )+ $he (i!("&s$a(es $ha$ 9)"l, ega$e lia:ili$' i sai,

14


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is"!a(e %)li(' (a)$ :e ()si,e!e, :' i&%li(a$i) $) ,is(ha!ge $he %e$i$i)e!is"!a(e ()&%a' +!)& lia:ili$' +)! a' i"!' ,isa:ili$' )! l)ss s"=e!e, :' $heis"!e,. Th"s $he +ail"!e )+ $he %e$i$i)e! is"!a(e ()&%a' $) i(l",e ,ea$h!es"l$ig +!)& &"!,e! )! assa"l$ a&)g $he %!)hi:i$e, !is-s lea,s ie*i$a:l' $) $he()(l"si) $ha$ i$ ,i, )$ i$e, $) li&i$ )! e/e&%$ i$sel+ +!)& lia:ili$' +)! s"(h ,ea$h.

. CIFIL LAW; CONTRACTS; INTERPRETATION O OBSCURE WORDS OR STIPULATIONSTHEREIN; RULE. A!$i(le 144 )+ $he Ci*il C),e )+ $he Phili%%ies %!)*i,es $ha$? #Thei$e!%!e$a$i) )+ ):s("!e 9)!,s )! s$i%"la$i)s i a ()$!a($ shall )$ +a*)! $he %a!$'

9h) (a"se, $he ):s("!i$'.#(!ala9 *i!$"a1a9 li:!a!'

. ID.; ID.; ID.; ID.; APPLICATION IN CONTRACT O INSURANCE; RULE. M)!e)*e! #i$is 9ell se$$le, $ha$ ()$!a($s )+ is"!a(e a!e $) :e ()s$!"e, li:e!all' i +a*)! )+ $heis"!e, a, s$!i($l' agais$ $he is"!e!. Th"s a&:ig"i$' i $he 9)!,s )+ a is"!a(e()$!a($ sh)"l, :e i$e!%!e$e, i +a*)! )+ i$s :ee(ia!'.# Na$i)al P)9e! C)!%)!a$i)*. C)"!$ )+ A%%eals 12 SCRA 2 01>58.

D E C I S I O N

NOCONJ.?

This is a %e$i$i) +)! certiorari9i$h a %!a'e! +)! $he iss"a(e )+ a !es$!aiig )!,e!a, %!eli&ia!' &a,a$)!' i"($i) $) a"l a, se$ asi,e $he ,e(isi) )+ $he C)"!$)+ A%%eals ,a$e, 3"l' 11 1>>1 1 a!&ig $he ,e(isi) ,a$e, Ma!(h 7@ 1>>@ )+ $heIs"!a(e C)&&issi) 7 i )!,e!ig %e$i$i)e! i&a Gee!al Ass"!a(e C)!%)!a$i)$) %a' %!i*a$e !es%),e$ 3"lia S"!%)sa $he %!)(ee,s )+ $he %e!s)al a((i,e$is"!a(e %)li(' 9i$h i$e!es$.(ha!):les.()& ? *i!$"al la9 li:!a!'

I$ a%%ea!s ) !e()!, $ha$ ) O($):e! 77 1>5 ,e(ease, Ca!lie S"!%)sa 9as is"!e,9i$h %e$i$i)e! i&a Gee!al Ass"!a(e C)!%)!a$i) ",e! i&a Gee!al

Tea(he!s P!)$e($i) Pla Mas$e! P)li(' N). 7@@2 a, I,i*i,"al P)li(' N). @5>7 9i$hhis %a!e$s s%)"ses 3"lia a, Ca!l)s S"!%)sa a, :!)$he!s Ch!is$)%he! Cha!lesChes$e! a, Cli+$) all s"!a&e, S"!%)sa as :ee(ia!ies.

While sai, is"!a(e %)li(' 9as i +"ll +)!(e a, e=e($ $he is"!e, Ca!lie S"!%)sa,ie, ) O($):e! 15 1>55 as a !es"l$ )+ a s$a: 9)", iKi($e, :' )e )+ $he $h!ee 08"i,e$ie, &e 9i$h)"$ %!)*)(a$i) a, 9a!ig ) $he %a!$ )+ $he +)!&e! as hea, his ()"si Wis$) S"!%)sa 9e!e 9ai$ig +)! a !i,e ) $hei! 9a' h)&e al)gRial6L)(si S$!ee$s Ba()l), Ci$' a+$e! a$$e,ig $he (ele:!a$i) )+ $he #Mas-a!!aA"al es$i*al.#(!ala9 *i!$"a1a9 li:!a!'

The!ea+$e! %!i*a$e !es%),e$ a, $he )$he! :ee(ia!ies )+ sai, is"!a(e %)li('le, a 9!i$$e )$i(e )+ (lai& 9i$h $he %e$i$i)e! is"!a(e ()&%a' 9hi(h ,eie,sai, (lai& ()$e,ig $ha$ &"!,e! a, assa"l$ a!e )$ 9i$hi $he s()%e )+ $he()*e!age )+ $he is"!a(e %)li('.

O e:!"a!' 7 1>5> %!i*a$e !es%),e$ le, a ()&%lai$ 9i$h $he Is"!a(eC)&&issi) 9hi(h s":se


16/85

O 3"l' 11 1>>1 $he a%%ella$e ()"!$ a!&e, sai, ,e(isi).

He(e %e$i$i)e! lle, $his %e$i$i) allegig g!a*e a:"se )+ ,is(!e$i) ) $he %a!$ )+$he a%%ella$e ()"!$ i a%%l'ig $he %!i(i%le )+ #e/%!ess) "i"s e/(l"si) al$e!i"s# i a%e!s)al a((i,e$ is"!a(e %)li(' si(e ,ea$h !es"l$ig +!)& &"!,e! a,Q)! assa"l$a!e i&%lie,l' e/(l",e, i sai, is"!a(e %)li(' ()si,e!ig $ha$ $he (a"se )+ ,ea$h )+$he is"!e, 9as )$ a((i,e$al :"$ !a$he! a ,eli:e!a$e a, i$e$i)al a($ )+ $heassaila$ i -illig $he +)!&e! as i,i(a$e, :' $he l)(a$i) )+ $he l)e s$a: 9)", )

$he is"!e,. The!e+)!e sai, ,ea$h 9as ()&&i$$e, 9i$h ,eli:e!a$e i$e$ 9hi(h :' $he*e!' a$"!e )+ a %e!s)al a((i,e$ is"!a(e %)li(' (a)$ :ei,e&ie,.(ha!):les *i!$"al la9li:!a!'

We ,) )$ ag!ee.

#The $e!&s a((i,e$ a, a((i,e$al as "se, i is"!a(e ()$!a($s ha*e )$a(


17/85

i(l",e, i $he e"&e!a$i) )+ $he (i!("&s$a(es $ha$ 9)"l, ega$e lia:ili$' i sai,is"!a(e %)li(' (a)$ :e ()si,e!e, :' i&%li(a$i) $) ,is(ha!ge $he %e$i$i)e!is"!a(e ()&%a' +!)& lia:ili$' +)! a' i"!' ,isa:ili$' )! l)ss s"=e!e, :' $heis"!e,. Th"s $he +ail"!e )+ $he %e$i$i)e! is"!a(e ()&%a' $) i(l",e ,ea$h!es"l$ig +!)& &"!,e! )! assa"l$ a&)g $he %!)hi:i$e, !is-s lea,s ie*i$a:l' $) $he()(l"si) $ha$ i$ ,i, )$ i$e, $) li&i$ )! e/e&%$ i$sel+ +!)& lia:ili$' +)! s"(h,ea$h.(ha!):les.()&?(!ala9?!e,

A!$i(le 144 )+ $he Ci*il C),e )+ $he Phili%%ies %!)*i,es $ha$?g(?(ha!):les.()&.%h

#The i$e!%!e$a$i) )+ ):s("!e 9)!,s )! s$i%"la$i)s i a ()$!a($ shall )$ +a*)! $he%a!$' 9h) (a"se, $he ):s("!i$'.#(!ala9 *i!$"a1a9 li:!a!'

M)!e)*e!#i$ is 9ell se$$le, $ha$ ()$!a($s )+ is"!a(e a!e $) :e ()s$!"e, li:e!all' i +a*)! )+$he is"!e, a, s$!i($l' agais$ $he is"!e!. Th"s a&:ig"i$' i $he 9)!,s )+ ais"!a(e ()$!a($ sh)"l, :e i$e!%!e$e, i +a*)! )+ i$s :ee(ia!'.# 4

WHEREORE ,ig ) i!!e*e!si:le e!!)! i $he ,e(isi) )+ $he !es%),e$ C)"!$ )+A%%eals $he %e$i$i) +)! certiorari9i$h !es$!aiig )!,e! a, %!eli&ia!' i"($i) ishe!e:' DENIED +)! la(- )+ &e!i$.

SO ORDERED.

B. G.R. No. 85296. '#0 1B, 199>.]!NIT& IN"URANC! CORORATION,Petitioner, v. COURT OFA!AL" #$% LAR!NC! F!RNAND!,Respondents.Vce$;e R. L#0#e$ orPetitioner.L#re$ce L. Fer$#$%e: Aoc#;e orPrivate Respondent.

D E C I S I O N

MEDIALDEAJ.?

Assaile, i $his %e$i$i) is $he ,e(isi) )+ $he C)"!$ )+ A%%eals i CA6G.R. C.F. N).1>5 e$i$le, #La9!e(e L. e!a,e %lai$i=6a%%ellee *. ei$h Is"!a(eC)!%. Deendant-Appellant# 9hi(h a!&e, i $)$) $he ,e(isi) )+ $he Regi)al T!ialC)"!$ )+ Ce:" B!a(h JJ i Ci*il Case N). CEB61712 a, $he ,eial )+ %e$i$i)e!sM)$i) +)! Re()si,e!a$i).

The a$e(e,e$ +a($s a!e as +)ll)9s??O 3a"a!' 72 1>5 %!i*a$e !es%),e$ La9!e(e e!a,e is"!e, his (a! +)!#)9 ,a&age# ",e! %!i*a$e (a! P)li(' N). 2@2> 9i$h %e$i$i)e! ei$h Is"!a(e

C)!%)!a$i). O 3"l' 1>5 $he (a! g"!e, i a a((i,e$ a, s"=e!e, a($"al,a&ages i $he a&)"$ )+ P@.@@. A+$e! allege,l' :eig gi*e a !" a!)", :'ei$h +)! $9) 078 &)$hs e!a,e le, a ()&%lai$ 9i$h $he Regi)al T!ial C)"!$ )+Ce:" +)! s"& )+ &)e' a, ,a&ages !es"l$ig +!)& $he !e+"sal )+ ei$h $) %a' $hea&)"$ (lai&e,. The ()&%lai$ 9as ,)(-e$e, as Ci*il Case N). CEB61712. Asi,e +!)&a($"al ,a&ages a, i$e!es$s e!a,e als) %!a'e, +)! &)!e ,a&ages i $hea&)"$ )+ P1@@@@.@@ e/e&%la!' ,a&ages )+ P2@@@.@@ a$$)!e's +ees )+P@@@.@@ a, li$iga$i) e/%eses )+ P@@@.@@.

O Se%$e&:e! 75 1>5 ei$h le, a as9e! allegig $ha$ i$ )=e!e, $) %a' $he

17


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(lai& )+ e!a,e %"!s"a$ $) $he $e!&s a, (),i$i)s )+ $he ()$!a($ 9hi(h $he%!i*a$e !es%),e$ !ee($e,. A+$e! $he iss"es ha, :ee )ie, $he %!e6$!ial 9ass(he,"le, ) O($):e! 14 1>5 :"$ $he sa&e 9as &)*e, $) N)*e&:e! 1>5 "%)%e$i$i)e!s &)$i) allege,l' $) e/%l)!e 9a's $) se$$le $he (ase al$h)"gh a$ aa&)"$ l)9e! $ha %!i*a$e !es%),e$s (lai&. O N)*e&:e! 1 1>5 $he $!ial ()"!$$e!&ia$e, $he %!e6$!ial. S":se5 a ,e(isi) 9as !e,e!e, :' $he $!ial ()"!$ i +a*)! )+ %!i*a$e!es%),e$ e!a,e. The ,is%)si$i*e %)!$i) )+ $he $!ial ()"!$s ,e(isi) %!)*i,es?#WHEREORE ,e+e,a$ is he!e:' )!,e!e, $) %a' $) $he %lai$i=?.

1. The a&)"$ )+ P@.@@ !e%!ese$ig $he ,a&age i("!!e, %l"s i$e!es$ a$ $he!a$e )+ $9i(e $he %!e*ailig i$e!es$ !a$es;

7. The a&)"$ )+ P7@@@@.@@ :' 9a' )+ &)!al ,a&ages;

. The a&)"$ )+ P7@@@@.@@ :' 9a' )+ e/e&%la!' ,a&ages;

. The a&)"$ )+ P2@@@.@@ as a$$)!e's +ees;

2. The a&)"$ )+ P@@@.@@ as li$iga$i) e/%eses; a,

. C)s$s.# 0%. > R)ll)8

U%) &)$i) )+ e!a,e a, :e+)!e $he e/%i!a$i) )+ $he %e!i), $) a%%eal $he $!ial()"!$ ) 3"e 7@ 1>5 )!,e!e, $he e/e("$i) )+ $he ,e(isi) %e,ig a%%eal. The)!,e! 9as assaile, :' %e$i$i)e! i a %e$i$i) +)! certiorari9i$h $he C)"!$ )+ A%%eals) O($):e! 7 1>5 i C.A. G.R N). 1@7@ :"$ 9hi(h %e$i$i) 9as als) ,is&isse, )

De(e&:e! 7 1>5 0%. > R)ll)8.

O 3"e 1@ 1>5 %e$i$i)e! le, a )$i(e )+ a%%eal :e+)!e $he $!ial ()"!$. The )$i(e)+ a%%eal 9as g!a$e, i $he sa&e )!,e! g!a$ig %!i*a$e !es%),e$s &)$i) +)!e/e("$i) %e,ig a%%eal. The a%%eal $) !es%),e$ ()"!$ assige, $he +)ll)9ige!!)!s?#I. The l)9e! ()"!$ e!!e, i ,e'ig ,e+e,a$ a%%ella$ $) a,,"(e e*i,e(e i i$s:ehal+.

II. The l)9e! ()"!$ e!!e, i )!,e!ig ei$h Is"!a(e C)!%)!a$i) $) %a' $he a&)"$)+ P@.@@ i i$s ,e(isi).

III. The l)9e! ()"!$ e!!e, i a9a!,ig &)!al ,a&ages a$$)!e's +ees a, e/e&%la!'

,a&ages $he 9)!s$ is $ha$ $he ()"!$ a9a!,e, ,a&ages &)!e $ha 9ha$ a!e %!a'e,+)! i $he ()&%lai$.# 0%. 17 R)ll)8

O A"g"s$ 14 1>55 $he C)"!$ )+ A%%eals !e,e!e, i$s ,e(isi) a!&ig i $)$) $he,e(isi) )+ $he $!ial ()"!$. I$ als) !"le, $ha$ $he &a$$e! )+ $he $!ial ()"!$s ,eial )+e!a,es !igh$ $) a,,"(e e*i,e(e is a (l)se, &a$$e! i *ie9 )+ i$s 0CA8 !"lig iAC6G.R. @ 9he!ei ei$hs %e$i$i)


19/85

14 1>55 9as ,eie, ) Se%$e&:e! 7> 1>55 +)! la(- )+ &e!i$. He(e $he is$a$%e$i$i) 9as le, :' ei$h ) O($):e! 15 1>55 ) $he allega$i) $ha$ !es%),e$C)"!$ )+ A%%eals ,e(isi) a, !es)l"$i) !a ()"$e! $) a%%li(a:le ,e(isi)s )+ $hisC)"!$ a, $ha$ $he' 9e!e !e,e!e, 9i$h)"$ )! i e/(ess )+ "!is,i($i). The iss"es!aise, :' %e$i$i)e!s i $his %e$i$i) a!e?(ha!):1es *i!$"al 1a9 li:!a!'

a8 The legal :asis )+ !es%),e$ C)"!$ )+ A%%eals i a9a!,ig &)!al ,a&agese/e&%la!' ,a&ages a, a$$)!e's +ees i a a&)"$ &)!e $ha $ha$ %!a'e, +)! i$he ()&%lai$.

:8 The a9a!, )+ a($"al ,a&ages )+ P@.@@ is$ea, )+ )l' P1>74.2@ 9hi(h 9asa!!i*e, a$ a+$e! ,e,"($ig P72@.@@ a, P74.@@ as ,e,"($i:le +!a(hise a, 7@,e%!e(ia$i) ) %a!$s as ag!ee, "%) i $he ()$!a($ )+ is"!a(e.

Pe$i$i)e! ()$e,s $ha$ 9hile $he ()&%lai$ )+ %!i*a$e !es%),e$ %!a'e, +)!P1@@@@.@@ &)!al ,a&ages $he l)9e! ()"!$ a9a!,e, $9i(e $he a&)"$ )!P7@@@@.@@ 9i$h)"$ +a($"al )! legal :asis; 9hile %!i*a$e !es%),e$ %!a'e, +)!P2@@@.@@ e/e&%la!' ,a&ages $he $!ial ()"!$ a9a!,e, P7@@@@.@@; a, 9hile %!i*a$e!es%),e$ %!a'e, +)! P@@@.@@ a$$)!e's +ees $he $!ial ()"!$ a9a!,e, P2@@@.@@.

The %!)%!ie$' )+ $he a9a!, )+ &)!al ,a&ages e/e&%la!' ,a&ages a, a$$)!e's+ees is $he &ai iss"e !aise, he!ei :' %e$i$i)e!.

The a9a!, )+ ,a&ages i (ase )+ "!eas)a:le ,ela' i $he %a'&e$ )+ is"!a(e(lai&s is g)*e!e, :' $he Phili%%ie Is"!a(e C),e 9hi(h %!)*i,es?#SEC. 7. I (ase )+ a' li$iga$i) +)! $he e+)!(e&e$ )+ a' %)li(' )! ()$!a($ )+is"!a(e i$ shall :e $he ,"$' )+ $he C)&&issi)e! )! $he C)"!$ as $he (ase &a' :e$) &a-e a ,ig as $) 9he$he! $he %a'&e$ )+ $he (lai& )+ $he is"!e, has :ee"!eas)a:l' ,eie, )! 9i$hhel,; a, i $he a!&a$i*e (ase $he is"!a(e ()&%a'shall :e a,",ge, $) %a' ,a&ages 9hi(h shall ()sis$ )+ a$$)!e's +ees a, )$he!e/%eses i("!!e, :' $he is"!e, %e!s) :' !eas) )+ s"(h "!eas)a:le ,eial )!9i$hh)l,ig )+ %a'&e$ %l"s i$e!es$ )+ $9i(e $he (eilig %!es(!i:e, :' $he M)e$a!'B)a!, )+ $he a&)"$ )+ $he (lai& ,"e $he is"!e, +!)& $he ,a$e +)ll)9ig $he $i&e%!es(!i:e, i se($i) $9) h",!e, +)!$'6$9) )! i se($i) $9) h",!e, +)!$'6$h!ee as$he (ase &a' :e "$il $he (lai& is +"ll' sa$ise,; P!)*i,e, Tha$ $he +ail"!e $) %a' a'

s"(h (lai& 9i$hi $he $i&e %!es(!i:e, i sai, se($i)s shall :e ()si,e!e, %!i&a +a(iee*i,e(e )+ "!eas)a:le ,ela' i %a'&e$.#I$ is (lea! $ha$ ",e! $he Is"!a(e C),e i (ase )+ "!eas)a:le ,ela' i $he%a'&e$ )+ $he %!)(ee,s )+ a is"!a(e %)li(' $he ,a&ages $ha$ &a' :e a9a!,e,a!e? 18 a$$)!e's +ees; 78 )$he! e/%eses i("!!e, :' $he is"!e, %e!s) :' !eas) )+s"(h "!eas)a:le ,eial )! 9i$hh)l,ig )+ %a'&e$; 8 i$e!es$ a$ $9i(e $he (eilig%!es(!i:e, :' $he M)e$a!' B)a!, )+ $he a&)"$ )+ $he (lai& ,"e $he i"!e,; a, 8$he a&)"$ )+ $he (lai&.

As !ega!,s $he a9a!, )+ &)!al a, e/e&%la!' ,a&ages $he !"les ",e! $he Ci*ilC),e )+ $he Phili%%ies shall g)*e! #The %"!%)se )+ &)!al ,a&ages is esse$iall'i,e&i$' )! !e%a!a$i) )$ %"ish&e$ )! ()!!e($i). M)!al ,a&ages a!ee&%ha$i(all' )$ i$e,e, $) e!i(h a ()&%laia$ a$ $he e/%ese )+ a ,e+e,a$

$he' a!e a9a!,e, )l' $) ea:le $he i"!e, %a!$' $) ):$ai &eas ,i*e!si)s )!a&"se&e$s $ha$ 9ill se!*e $) alle*ia$e $he &)!al s"=e!ig he has ",e!g)e :'!eas) )+ $he ,e+e,a$s ("l%a:le a($i).# 03. Cea! S. Sag() Phili%%ie La9 )

T)!$s a, Da&ages Re*ise, E,i$i) %. 2>8 0See als) R a, B S"!e$' Is"!a(eC). I(. *. IAC G.R. N). 212 3"e 77 1>5; 17> SCRA 428. While i$ is $!"e $ha$ )%!))+ )+ %e("ia!' l)ss is e(essa!' i )!,e! $ha$ &)!al ,a&ages &a' :e a,",i(a$e,$he assess&e$ )+ 9hi(h is le+$ $) $he ,is(!e$i) )+ $he ()"!$ a(()!,ig $) $he(i!("&s$a(es )+ ea(h (ase 0A!$. 771 Ne9 Ci*il C),e8 i$ is e


20/85

+!a",e$l' )! i :a, +ai$h 0Pe!e *. C)"!$ )+ A%%eals G.R. N). L67@75 3a"a!' @1>2; 1 SCRA 14; S)lis *. Sal*a,)! G.R. N). L614@77 A"g"s$ 1 1>2; 1 SCRA5548. I $he is$a$ (ase $he!e 9as a ,ig $ha$ %!i*a$e !es%),e$ 9as gi*e a#!"6a!)",# +)! $9) &)$hs 9hi(h is $he :asis +)! $he a9a!, )+ $he ,a&agesg!a$e, ",e! $he Is"!a(e C),e +)! "!eas)a:le ,ela' i $he %a'&e$ )+ $he(lai&. H)9e*e! $he a($ )+ %e$i$i)e! )+ ,ela'ig %a'&e$ +)! $9) &)$hs (a)$ :e()si,e!e, as s) 9a$) )! &ale*)le$ $) "s$i+' a a9a!, )+ P7@@@@.@@ as &)!al,a&ages $a-ig i$) ()si,e!a$i) als) $he +a($ $ha$ $he a($"al ,a&age ) $he (a!9as )l' P@. I $he %!e6$!ial )+ $he (ase i$ 9as sh)9 $ha$ $he!e 9as ) $)$al

,is(lai&e! :' Respondent. The !eas) +)! %e$i$i)e!s +ail"!e $) i,e&i+' %!i*a$e!es%),e$ 9i$hi $he $9)6&)$h %e!i), 9as $ha$ $he %a!$ies ()"l, )$ ()&e $) aag!ee&e$ as !ega!,s $he a&)"$ )+ $he a($"al ,a&age ) $he (a!. The a&)"$ )+P1@@@@.@@ %!a'e, +)! :' %!i*a$e !es%),e$ as &)!al ,a&ages is e Ne9 Ci*il C),e )+ $he Phili%%ies8. I $he(ase )+ N),a *. C!"6A!al,) G.R. N). 2477 3"e 77 1>54; 121 SCRA 774e/e&%la!' ,a&ages 9e!e )$ a9a!,e, as $he is"!a(e ()&%a' ha, )$ a($e, i9a$) )%%!essi*e )! &ale*)le$ &ae!. The sa&e is $!"e i $he (ase a$ :a!.

The a&)"$ )+ P2@@@.@@ a9a!,e, as a$$)!e's +ees is "s$ie, ",e! $he(i!("&s$a(es )+ $his (ase ()si,e!ig $ha$ $he!e 9e!e )$he! %e$i$i)s le, a,

,e+e,e, :' %!i*a$e !es%),e$ i ()e($i) 9i$h $his (ase.

As !ega!,s $he a($"al ,a&ages i("!!e, :' %!i*a$e !es%),e$ $he a&)"$ )+P@.@@ ha, :ee es$a:lishe, :e+)!e $he $!ial ()"!$ a, a!&e, :' $he a%%ella$e()"!$. Res%),e$ a%%ella$e ()"!$ ()!!e($l' !"le, $ha$ $he ,e,"($i)s )+ P72@.@@ a,P74.@@ as ,e,"($i:le +!a(hise a, 7@ ,e%!e(ia$i) ) %a!$s !es%e($i*el' (lai&e,:' %e$i$i)e!s as ag!ee, "%) i $he ()$!a($ ha, ) :asis. Res%),e$ ()"!$ !"le,?

#U,e! i$s se(), assige, e!!)! Deendant-Appellant%"$s +)!9a!, $9) a!g"&e$s:)$h )+ 9hi(h a!e e$i!el' 9i$h)"$ &e!i$. I$ is ()$e$e, $ha$ $he a&)"$ !e()*e!a:le",e! $he is"!a(e %)li(' ,e+e,a$6a%%ella$ iss"e, )*e! $he (a! )+ %lai$i=6a%%ellee is s":e($ $) ,e,"($i:le +!a(hise a, . . .

#The %)li(' 0E/hi:i$ G %%. 6> Re()!,8 ,)es )$ &e$i) a' ,e,"($i:le +!a(hise . ..# 0%. 1 R)ll)8

The!e+)!e $he a9a!, )+ &)!al ,a&ages is !e,"(e, $) P1@@@@.@@ a, $he a9a!, )+e/e&%la!' ,a&ages is he!e:' ,ele$e,. The a9a!,s ,"e $) %!i*a$e !es%),e$e!a,e a!e as +)ll)9s?18 P@.@@ as a($"al (lai& %l"s i$e!es$ )+ $9i(e $he (eilig %!es(!i:e, :' $heM)e$a!' B)a!, ()&%"$e, +!)& $he $i&e )+ s":&issi) )+ %!))+ )+ l)ss;

78 P1@@@@.@@ as &)!al ,a&ages;

8 P2@@@.@@ as a$$)!e's +ees;

8 P@@@.@@ as li$iga$i) e/%eses a,

28 C)s$s

ACCORDINGLY $he a%%eale, ,e(isi) is MODIIED as a:)*e s$a$e,.

SO ORDERED.

20


21/85

5. 3G.R. No. 92=8=. *(+0 14, 1992.]"UN IN"URANC! OFFIC!, LTD.,Petitioner, v. T&! &ON. COURT OFA!AL" #$% N!RI""A LI',Respondents.A+o$o Fe+E, *r. orPetitioner.Arm#$%o T. ($o orPrivate Respondent.

"/LLAU"

1. LAW ON INSURANCE; DEINITION O TERM #ACCIDENT# ; INSURED PERSONSDEATH CONSIDERED AN ACCIDENT. The $e!& #a((i,e$# has :ee ,ee, as+)ll)9s? The 9)!,s #a((i,e$# a, #a((i,e$al# ha*e e*e! a(


22/85

ASSURED. Li& 9as "


23/85

The $e!& #a((i,e$# has :ee ,ee, as +)ll)9s?(ha!):1es *i!$"al 1a9 li:!a!'

The 9)!,s #a((i,e$# a, #a((i,e$al# ha*e e*e! a(


24/85

$he)!' is $ha$ a g" is %e! se ,age!)"s a, sh)"l, $he!e+)!e :e ha,le, (a"$i)"sl'i e*e!' (ase.

Tha$ %)s$"!e is a!g"a:le. B"$ 9ha$ is )$ is $ha$ as $he se(!e$a!' $es$ie, Li& ha,!e&)*e, $he &agaie +!)& $he g" a, :elie*e, i$ 9as ) l)ge! ,age!)"s. Hee/%!esse, ass"!e, he! $ha$ $he g" 9as )$ l)a,e,. I$ is s":&i$$e, $ha$ Li& ,i, )$9ill+"ll' e/%)se hi&sel+ $) ee,less %e!il 9he he %)i$e, $he g" $) his $e&%le:e(a"se $he +a($ is $ha$ he $h)"gh$ i$ 9as )$ "sa+e $) ,) s). The a($ 9as %!e(isel'i$e,e, $) ass"!e Nalag) $ha$ $he g" 9as i,ee, ha!&less.

The ()$!a!' *ie9 is e/%!esse, :' $he %e$i$i)e! $h"s?(ha!):1es *i!$"al 1a9 li:!a!'

A((i,e$ is"!a(e %)li(es 9e!e e*e! i$e,e, $) !e9a!, $he is"!e, +)! his$e,e(' $) sh)9 )= )! +)! his &is(al("la$i)s. The' 9e!e i$e,e, $) %!)*i,e +)!()$ige(ies. He(e 9he I &is(al("la$e a, "&% +!)& $he "e) B!i,ge i$) $hePasig Ri*e! i $he :elie+ $ha$ I (a )*e!()&e $he ("!!e$ I ha*e 9il+"ll' e/%)se,&'sel+ $) %e!il a, &"s$ a((e%$ $he ()se


25/85

e!!)e)"sl'. )! $hese $he la9 $a/es ()s$s. 4

The +a($ $ha$ $he !es"l$s )+ $he $!ial 9e!e a,*e!se $) Ba!!e$) ,i, )$ al)e &a-e hisa($ i :!igig $he a($i) 9!)g+"l :e(a"se i &)s$ (ases )e %a!$' 9ill l)se; 9e9)"l, :e i&%)sig a ""s$ (),i$i) )! li&i$a$i) ) $he !igh$ $) li$iga$e. We h)l,$ha$ $he a9a!, )+ &)!al ,a&ages i $he (ase a$ :a! is )$ "s$ie, :' $he +a($s a,(i!("&s$a(es as 9ell as $he la9.I+ a %a!$' 9is he (a)$ as a !"le !e()*e! a$$)!e's +ees a, li$iga$i) e/%esessi(e i$ is )$ $he +a($ )+ 9iig al)e $ha$ e$i$les hi& $) !e()*e! s"(h ,a&ages )+

$he e/(e%$i)al (i!("&s$a(es e"&e!a$e, i A!$. 77@5. O$he!9ise e*e!' $i&e a,e+e,a$ 9is a"$)&a$i(all' $he %lai$i= &"s$ %a' a$$)!e's +ees $he!e:' %"$$ig%!e&i"& ) $he !igh$ $) li$iga$e 9hi(h sh)"l, )$ :e s). )! $h)se e/%eses $he la9,ee&s $he a9a!, )+ ()s$s as s"(ie$. 5

WHEREORE $he (hallege, ,e(isi) )+ $he C)"!$ )+ A%%eals is AIRMED is)+a! asi$ h)l,s $he %e$i$i)e! lia:le $) $he %!i*a$e !es%),e$ i $he s"& )+ P7@@@@@.@@!e%!ese$ig $he +a(e *al"e )+ $he is"!a(e ()$!a($ 9i$h i$e!es$ a$ $he legal !a$e+!)& $he ,a$e )+ $he lig )+ $he ()&%lai$ "$il $he +"ll a&)"$ is %ai, :"$ MODIIED9i$h $he ,ele$i) )+ all a9a!,s +)! ,a&ages i(l",ig a$$)!e's +ees e/(e%$ $he()s$s )+ $he s"i$.

SO ORDERED.

6. G.R. No. L-5B141. Oc;ober 28, 198>.]*!!L VILLACORTA, #;e% b0 er (b#$%, GU!RR!ROVILLACORTA,Petitioner, v. T&! IN"URANC! CO''I""ION #$%!'IR! IN"URANC! CO'AN/,Respondents.

D E C I S I O N

TEEHANEE A($ig C.J.?

The C)"!$ se$s asi,e !es%),e$ Is"!a(e C)&&issi)s ,is&issal )+ %e$i$i)e!s()&%lai$ a, h)l,s $ha$ 9he!e $he is"!e,s (a! is 9!)g+"ll' $a-e 9i$h)"$ $heis"!e,s ()se$ +!)& $he (a! se!*i(e a, !e%ai! sh)% $) 9h)& i$ ha, :eee$!"s$e, +)! (he(-6"% a, !e%ai!s 0ass"&ig $ha$ s"(h $a-ig 9as +)! a )' !i,e i$he ()"!se )+ 9hi(h i$ 9as $)$all' s&ashe, i a a((i,e$8 !es%),e$ is"!e! islia:le a, &"s$ %a' is"!e, +)! $he $)$al l)ss )+ $he is"!e, *ehi(le ",e! $he $he+$(la"se )+ $he %)li('.

The ",is%"$e, +a($s )+ $he (ase as +)", i $he a%%eale, ,e(isi) )+ A%!il 1 1>5@)+ !es%),e$ is"!a(e ()&&issi) a!e as +)ll)9s?#C)&%laia$ 0%e$i$i)e!8 9as $he )9e! )+ a C)l$ La(e! M),el 1>4 is"!e, 9i$h!es%),e$ ()&%a' ",e! P!i*a$e Ca! P)li(' N). MBIQPC6@4@ +)! P2@@@.@@ O9Da&age; P@@@@.@@ The+$; a, P@@@@.@@ Thi!, Pa!$' Lia:ili$' e=e($i*e Ma'

1 1>44 $) Ma' 1 1>45. O Ma' > 1>45 $he *ehi(le 9as :!)"gh$ $) $he S",a'Ma(hie W)!-s I(. +)! gee!al (he(-6"% a, !e%ai!s. O Ma' 11 1>45 9hile i$ 9asi $he ("s$),' )+ $he S",a' Ma(hie W)!-s $he (a! 9as allege,l' $a-e :' si/ 08%e!s)s a, ,!i*e )"$ $) M)$al:a Rial. While $!a*ellig al)g Ma:ii S$. Si$i)Pal'asa Ba!!i) B"!g)s g)ig N)!$h a$ M)$al:a Rial $he (a! g"!e, i aa((i,e$ hi$$ig a, :"&%ig a g!a*el a, sa, $!"(- %a!-e, a$ $he !igh$ si,e )+ $he!)a, g)ig s)"$h. As a ()se


26/85

,a&age. C)&%laia$ $he!ea+$e! le, a (lai& +)! $)$al l)ss 9i$h $he !es%),e$()&%a' :"$ (lai& 9as ,eie,. He(e ()&%laia$ 9as ()&%elle, $) is$i$"$e $he%!ese$ a($i).#

The ()&%!ehesi*e &)$)! (a! is"!a(e %)li(' +)! P2@@@.@@ iss"e, :' !es%),e$E&%i!e Is"!a(e C)&%a' a,&i$$e,l' ",e!$))- $) i,e&i+' $he %e$i$i)e!6is"!e,agais$ l)ss )! ,a&age $) $he (a! 0a8 :' a((i,e$al ()llisi) )! )*e!$"!ig )!()llisi) )! )*e!$"!ig ()se


27/85

The &ai %"!%)se )+ $he #a"$h)!ie, ,!i*e!# (la"se as &a' :e see +!)& i$s $e/$s"%!a is $ha$ a %e!s) )$he! $ha $he is"!e, )9e! 9h) ,!i*es $he (a! ) $heis"!e,s )!,e! s"(h as his !eg"la! ,!i*e! )! 9i$h his %e!&issi) s"(h as a +!ie, )!&e&:e! )+ $he +a&il' )! $he e&%l)'ees )+ a (a! se!*i(e )! !e%ai! sh)% &"s$ :e ,"l'li(ese, ,!i*e!s a, ha*e ) ,is


28/85

$he lig )+ s"(h (lai& +)! !ei&:"!se&e$ )! %a'&e$ as i$ &a' ha*e as s":!)geeagais$ $he S",a' Ma(hie W)!-s I(.(ha!):les.()&.%h ? *i!$"al la9 li:!a!'

ACCORDINGLY $he a%%eale, ,e(isi) is se$ asi,e a, ",g&e$ is he!e:' !e,e!e,se$e(ig %!i*a$e !es%),e$ $) %a' %e$i$i)e! $he s"& )+ P2@@@.@@ 9i$h legali$e!es$ +!)& $he lig )+ $he ()&%lai$ "$il +"ll %a'&e$ is &a,e a, $) %a' $he()s$s )+ s"i$.SO ORDERED.

4. 3G.R. No. L-=6B8>. '#0 =1, 1988.]ANDR! AL!R'O,Plaintif-Appellee, v. /RA'ID IN"URANC!CO., INC.,Deendant-Appellant.

D E C I S I O N

GRIO6AUINOJ.?

The C)"!$ )+ A%%eals (e!$ie, $his (ase $) Us +)! %!)%e! ,is%)si$i) as $he )l'> $he is"!e, a%%ellee A,!e9 Pale!&) le, a ()&%lai$ i $heC)"!$ )+ i!s$ Is$a(e )+ Neg!)s O((i,e$al agais$ P'!a&i, Is"!a(e C). I(. +)!%a'&e$ )+ his (lai& ",e! a P!i*a$e Ca! C)&%!ehesi*e P)li(' MF61721 iss"e, :'$he ,e+e,a$ 0E/h. A8.

I i$s as9e! $he a%%ella$ P'!a&i, Is"!a(e C). I(. allege, $ha$ i$ ,isall)9e, $he(lai& :e(a"se a$ $he $i&e )+ $he a((i,e$ $he is"!e, 9as ,!i*ig his (a! 9i$h ae/%i!e, ,!i*e!s li(ese.

A+$e! $he $!ial $he ()"!$ a 1>> )!,e!ig $he,e+e,a$ #$) %a' $he %lai$i= $he s"& )+ P7@@@@.@@ *al"e )+ $he is"!a(e )+ $he&)$)! *ehi(le i 5 9hile ,!i*ig $he a"$)&):ile i


29/85

#The ,e+e,a$ 9as i&&e,ia$el' )$ie, )+ $he )(("!!e(e a, "%) i$s )!,e!s $he,a&age, (a! 9as $)9e, +!)& $he s(ee )+ $he a((i,e$ $) $he ()&%)", )+ Ng Sa&B)- M)$)!s i Ba()l), Ci$' 9he!e i$ !e&ais ,e%)si$e, "% $) $he %!ese$ $i&e.

#The is"!a(e %)li(' E/hi:i$ A g!a$s a )%$i) "$) $he ,e+e,a$ i (ase )+a((i,e$ ei$he! $) i,e&i+' $he %lai$i= +)! l)ss )! ,a&age $) $he (a! i (ash )! $)!e%la(e $he ,a&age, (a!. The ,e+e,a$ h)9e*e! !e+"se, $) $a-e ei$he! )+ $hea:)*e6&e$i)e, al$e!a$i*es +)! $he !eas) as allege, $ha$ $he is"!e, hi&sel+ ha,*i)la$e, $he $e!&s )+ $he %)li(' 9he he ,!)*e $he (a! i


30/85

A.L.R. 14.8

WHEREORE $he a%%eale, ,e(isi) is a!&e, 9i$h ()s$s agais$ $he ,e+e,a$6a%%ella$.

SO ORDERED.

8. G.R. No. 6>5>6. A((; 6, 1992.]

FIGURACION VDA. D! 'AGLANA, !DIT&A '. CRU, !RLINDA '.'A"!"AR, L!ONILA '. 'ALLARI, GILDA ANTONIO #$% ;em$or L!A&, LO!, *R., #$% !LVIRA, #++ (r$#me% 'AGLANA,ere$ reree$;e% b0 ;er mo;er, FIGURACION VDA. D!'AGLANA,Petitioners, v. &ONORAL! FRANCI"CO .CON"OLACION, re%$ *(%e o D#v#o C;0, r#$c II, #$%AFI"CO IN"URANC! CORORATION,Respondents.

*oe . G(0o, orPetitioners.

A$e+ !. Fer$#$%e: orPrivate Respondents.

"/LLAU"

1. COMMERCIAL LAW; INSURANCE; COMPULSORY MOTOR FEHICLE LIABILITYINSURANCE; THIRD PARTY LIABILITY; INSURER DIRECTLY LIABLE TO THE IN3URED. #Whe!e a is"!a(e %)li(' is"!es ,i!e($l' agais$ lia:ili$' $he is"!e!s lia:ili$'a((!"es i&&e,ia$el' "%) $he )(("!!e(e )+ $he i"!' )! e*e$ "%) 9hi(h $helia:ili$' ,e%e,s a, ,)es )$ ,e%e, ) $he !e()*e!' )+ ",g&e$ :' $he i"!e,%a!$' agais$ $he is"!e,. The ",e!l'ig !eas) :ehi, $he $hi!, %a!$' lia:ili$' 0TPL8)+ $he C)&%"ls)!' M)$)! Fehi(le Lia:ili$' Is"!a(e is #$) %!)$e($ i"!e, %e!s)sagais$ $he is)l*e(' )+ $he is"!e, 9h) (a"ses s"(h i"!' a, $) gi*e s"(h i"!e,%e!s) a (e!$ai :ee(ial i$e!es$ i $he %!)(ee,s )+ $he %)li('. . . .# 0Sha+e! *. 3",geRTC )+ Ol)ga%) Ci$' B!. 42 G.R. N). 4555 N)*. 1 1>55 14 SCRA 5 >18

7. ID.; ID.; ID.; ID.; LIABILITY O INSURER DISTINCT ROM LIABILITY O THE INSUREDAGAINST THIRD PARTIES. We (a)$ ag!ee $ha$ AISCO is li-e9ise s)li,a!il' lia:le9i$h Des$!a). I Mala'a Is"!a(e C). *. C)"!$ )+ A%%eals 0L61 Se%$e&:e! 71>55 12 SCRA 2 28 $his C)"!$ ha, $he )%%)!$"i$' $) !es)l*e $he iss"e as $)$he a$"!e )+ $he lia:ili$' )+ $he is"!e! a, $he is"!e, *is6a6*is $he $hi!, %a!$'i"!e, i a a((i,e$. We (a$eg)!i(all' !"le, $h"s? #While i$ is $!"e $ha$ 9he!e $heis"!a(e ()$!a($ %!)*i,es +)! i,e&i$' agais$ lia:ili$' $) $hi!, %e!s)s s"(h $hi!,%e!s)s (a ,i!e($l' s"e $he is"!e! h)9e*e! $he ,i!e($ lia:ili$' )+ $he is"!e! ",e!i,e&i$' ()$!a($s agais$ $hi!, %a!$' lia:ili$' ,)es )$ &ea $ha$ $he is"!e! (a :e

30


31/85

hel, s)li,a!il' lia:le 9i$h $he is"!e, a,Q)! $he )$he! %a!$ies +)", a$ +a"l$. Thelia:ili$' )+ $he is"!e! is :ase, ) ()$!a($; $ha$ )+ $he is"!e, is :ase, ) $)!$. . . .)! i+ %e$i$i)e!6is"!e! 9e!e s)li,a!il' lia:le 9i$h sai, $9) 078 !es%),e$s :' !eas))+ $he i,e&i$' ()$!a($ agais$ $hi!, %a!$' lia:ili$' ",e! 9hi(h a is"!e! (a :e,i!e($l' s"e, :' a $hi!, %a!$' $his 9ill !es"l$ i a *i)la$i) )+ $he %!i(i%les",e!l'ig s)li,a!' ):liga$i) a, is"!a(e ()$!a($s.#(!ala9 *i!$"a1a9 li:!a!'

. ID.; ID.; INSURANCE CONTRACTS DISTINGUISHED ROM ORDINARY CONTRACTS. The C)"!$ ,is$ig"ish $he e/$e$ )+ $he lia:ili$' a, &ae! )+ e+)!(ig $he sa&e i

)!,ia!' ()$!a($s +!)& $ha$ )+ is"!a(e ()$!a($s. While i s)li,a!' ):liga$i)s $he(!e,i$)! &a' e+)!(e $he e$i!e ):liga$i) agais$ )e )+ $he s)li,a!' ,e:$)!s i ais"!a(e ()$!a($ $he is"!e! ",e!$a-es +)! a ()si,e!a$i) $) i,e&i+' $heis"!e, agais$ l)ss ,a&age )! lia:ili$' a!isig +!)& a "-)9 )! ()$ige$e*e$. Th"s %e$i$i)e! $he!ei 9hi(h ",e! $he is"!a(e ()$!a($ is lia:le )l' "%$) P7@@@@.@@ (a )$ :e &a,e s)li,a!il' lia:le 9i$h $he is"!e, +)! $he e$i!e):liga$i) )+ P7>@1.@@ )$he!9ise $he!e 9)"l, !es"l$ #a e*i,e$ :!ea(h )+ $he()(e%$ )+ s)li,a!' ):liga$i).#

D E C I S I O N

ROMEROJ.?

The a$"!e )+ $he lia:ili$' )+ a is"!e! s"e, $)ge$he! 9i$h $he is"!e,Q)%e!a$)!6)9e!)+ a ()&&) (a!!ie! 9hi(h g"!e, i a a((i,e$ (a"sig $he ,ea$h )+ a $hi!, %e!s)is s)"gh$ $) :e ,ee, i $his %e$i$i) +)! certiorari.

The +a($s as +)", :' $he $!ial ()"!$ a!e as +)ll)9s?#. . . . L)%e Maglaa 9as a e&%l)'ee )+ $he B"!ea" )+ C"s$)&s 9h)se 9)!- s$a$i)9as a$ Lasa he!e i Da*a) Ci$'. O De(e&:e! 7@ 1>45 ea!l' &)!ig L)%eMaglaa 9as ) his 9a' $) his 9)!- s$a$i) ,!i*ig a &)$)!('(le )9e, :' $heB"!ea" )+ C"s$)&s. A$ &. 4 Laag he &e$ a a((i,e$ $ha$ !es"l$e, i his ,ea$h.He ,ie, ) $he s%)$. The PU3 ee% $ha$ :"&%e, $he ,e(ease, 9as ,!i*e :' Pe%i$)I$) )%e!a$e, a, )9e, :' ,e+e,a$ Des$!a). !)& $he i*es$iga$i) (),"($e,:' $he $!a( i*es$iga$)! $he PU3 ee% 9as )*e!$a-ig a)$he! %assege! ee% $ha$

9as g)ig $)9a!,s $he (i$' %):la(i). While )*e!$a-ig $he PU3 ee% )+ ,e+e,a$Des$!a) !"ig a:!eas$ 9i$h $he )*e!$a-e ee% :"&%e, $he &)$)!('(le ,!i*e :'$he ,e(ease, 9h) 9as g)ig $)9a!,s $he ,i!e($i) )+ Lasa Da*a) Ci$'. The %)i$ )+i&%a($ 9as ) $he lae )+ $he &)$)!('(le a, $he ,e(ease, 9as $h!)9 +!)& $he!)a, a, &e$ his "$i&el' ,ea$h.# 1

C)se


32/85

P75@@@.@@ +)! l)ss )+ i()&e; $) %a' %lai$i=s $he s"& )+ P17@@@.@@ 9hi(h a&)"$shall :e ,e,"($e, i $he e*e$ ",g&e$ i C!i&ial Case N). 2746D agais$ $he,!i*e!AccusedI$) shall ha*e :ee e+)!(e,; $) %a' %lai$i=s $he s"& )+ P2>@1.4@!e%!ese$ig +"e!al a, :"!ial e/%eses )+ $he ,e(ease,; $) %a' %lai$i=s $he s"& )+P2@@@.@@ as &)!al ,a&ages 9hi(h shall :e ,e,"($e, i $he e*e$ ",g&e$ 0si(8 iC!i&ial Case N). 2746D agais$ $he ,!i*e!AccusedI$); $) %a' %lai$i=s $he s"&)+ P@@@.@@ as a$$)!e's +ees a, $) %a' $he ()s$s )+ s"i$.

The ,e+e,a$ is"!a(e ()&%a' is )!,e!e, $) !ei&:"!se ,e+e,a$ Des$!a)

9ha$e*e! a&)"$s $he la$$e! shall ha*e %ai, )l' "% $) $he e/$e$ )+ i$s is"!a(e()*e!age.

SO ORDERED.#

Pe$i$i)e!s le, a &)$i) +)! $he !e()si,e!a$i) )+ $he se(), %a!ag!a%h )+ $he,is%)si$i*e %)!$i) )+ $he ,e(isi) ()$e,ig $ha$ AISCO sh)"l, )$ &e!el' :e hel,se(),a!il' lia:le :e(a"se $he Is"!a(e C),e %!)*i,es $ha$ $he is"!e!s lia:ili$' is#,i!e($ a, %!i&a!' a,Q)! )i$l' a, se*e!all' 9i$h $he )%e!a$)! )+ $he *ehi(leal$h)"gh )l' "% $) $he e/$e$ )+ $he is"!a(e ()*e!age.# He(e $he' a!g"e, $ha$$he P7@@@@.@@ ()*e!age )+ $he is"!a(e %)li(' iss"e, :' AISCO sh)"l, ha*e :eea9a!,e, i $hei! +a*)!.

I i$s ()&&e$ ) $he &)$i) +)! !e()si,e!a$i) AISCO a!g"e, $ha$ si(e $heIs"!a(e C),e ,)es )$ e/%!essl' %!)*i,e +)! a s)li,a!' ):liga$i) $he %!es"&%$i)is $ha$ $he ):liga$i) is )i$.

I i$s O!,e! )+ e:!"a!' > 1>57 $he l)9e! ()"!$ ,eie, $he &)$i) +)!!e()si,e!a$i) !"lig $ha$ si(e $he is"!a(e ()$!a($ #is i $he a$"!e )+s"!e$'shi% $he $he lia:ili$' )+ $he is"!e! is se(),a!' )l' "% $) $he e/$e$ )+ $heis"!a(e ()*e!age.# 2

Pe$i$i)e!s le, a se(), &)$i) +)! !e()si,e!a$i) !ei$e!a$ig $ha$ $he lia:ili$' )+$he is"!e! is ,i!e($ %!i&a!' a, s)li,a!' 9i$h $he ee%e' )%e!a$)! :e(a"se $he%e$i$i)e!s :e(a&e ,i!e($ :ee(ia!ies ",e! $he %!)*isi) )+ $he %)li(' 9hi(h ie=e($ is a s$i%"la$i) %)"! a"$!"i. This &)$i) 9as li-e9ise ,eie, +)! la(- )+ &e!i$.

He(e %e$i$i)e!s le, $he is$a$ %e$i$i) +)! certiorari9hi(h al$h)"gh i$ ,)es )$see- $he !e*e!sal )+ $he l)9e! ()"!$s ,e(isi) i i$s e$i!e$' %!a's +)! $he se$$igasi,e )! &),i(a$i) )+ $he se(), %a!ag!a%h )+ $he ,is%)si$i*e %)!$i) )+ sai,,e(isi). Pe$i$i)e!s !easse!$ $hei! %)si$i) $ha$ $he is"!a(e ()&%a' is ,i!e($l' a,s)li,a!il' lia:le 9i$h $he eglige$ )%e!a$)! "% $) $he e/$e$ )+ i$s is"!a(e()*e!age.

We g!a$ $he %e$i$i).

The %a!$i("la! %!)*isi) )+ $he is"!a(e %)li(' ) 9hi(h %e$i$i)e!s :ase $hei! (lai&is as +)ll)9s? #SECTION 1 LIABILITY TO THE PUBLIC

1. The C)&%a' 9ill s":e($ $) $he Li&i$s )+ Lia:ili$' %a' all s"&s e(essa!' $),is(ha!ge lia:ili$' )+ $he is"!e, i !es%e($ )+.

0a8 ,ea$h )+ )! :),il' i"!' $) a' THIRD PARTY

0:8 . . . .

7. . . . .

. I $he e*e$ )+ $he ,ea$h )+ a' %e!s) e$i$le, $) i,e&i$' ",e! $his P)li(' $he

32


33/85

C)&%a' 9ill i !es%e($ )+ $he lia:ili$' i("!!e, $) s"(h %e!s) i,e&i+' his%e!s)al !e%!ese$a$i*es i $e!&s )+ a, s":e($ $) $he $e!&s a, (),i$i)s he!e)+.#4

The a:)*[email protected]@ i a(()!,a(e 9i$h $he ,e(isi) )+ $he l)9e! ()"!$.Si(e ",e! :)$h $he la9 a, $he is"!a(e %)li(' AISCOs lia:ili$' is )l' "% $)P7@@@@.@@ $he se(), %a!ag!a%h )+ $he ,is%)si$i*e %)!$i) )+ $he ,e(isi) i


34/85

AISCO a, $he :ala(e +!)& Des$!a) )! e+)!(e $he e$i!e ",g&e$ +!)& Des$!a)s":e($ $) !ei&:"!se&e$ +!)& AISCO $) $he e/$e$ )+ $he is"!a(e ()*e!age.

While $he %e$i$i) see-s a ,ei$i*e !"lig )l' ) $he a$"!e )+ AISCOs lia:ili$' 9e)$i(e, $ha$ $he l)9e! ()"!$ e!!e, i $he ()&%"$a$i) )+ $he %!):a:le l)ss )+ i()&e.Usig $he +)!&"la? 7Q )+ 05@628 / P17@@@.@@ i$ a9a!,e, P75@@@.@@. 1 U%)!e()&%"$a$i) $he ()!!e($ a&)"$ is P1>7@@@.@@. Beig a #%lai e!!)!# 9e )%$ $)()!!e($ $he sa&e. 1 "!$he!&)!e i a(()!,a(e 9i$h %!e*ailig "!is%!",e(e $he,ea$h i,e&i$' is he!e:' i(!ease, $) P2@@@@.@@. 12

WHEREORE %!e&ises ()si,e!e, $he %!ese$ %e$i$i) is he!e:' GRANTED. Thea9a!, )+ P755@@.@@ !e%!ese$ig l)ss )+ i()&e is INCREASED $) P1>7@@@.@@ a,$he ,ea$h i,e&i$' )+ P17@@@.@@ $) P2@@@@.@@.

SO ORDERED.

9.G.R. No. 96B52. '#0 4, 1992.]!RLA CO'ANIA D! "!GURO", INC.,Petitioner, v. T&! COURTOF A!AL", &!R'INIO LI' #$% !V!L/N LI',Respondents.3G.R. No. 96B9=. '#0 4, 1992.]

FC CR!DIT CORORATION,Petitioner, v. T&! COURT OFA!AL", "ec#+ Tr% Dvo$, &!R'INIO LI' #$% !V!L/NLI',,Respondents.

/o+#$%# ((mb$-*#ve++#$# #$% Ne+o$ A. Lo0o+#orPetitioner.+o$ L. Tee or reo$%e$; &erme$o #$% !ve+0$ Lm.

"/LLAU"

1. COMMERCIAL LAW; INSURANCE; LOSS O MOTOR FEHICLE THRU THET; NOCAUSAL CONNECTION BETWEEN POSSESSION O A FALID DRIFERS LICENSE AND

LOSS O FEHICLE THRU THET. I$ is 9)!$h' $) )$e $ha$ $he!e is ) (a"sal()e($i) :e$9ee $he %)ssessi) )+ a *ali, ,!i*e!s li(ese a, $he l)ss )+ a*ehi(le. T) !"le )$he!9ise 9)"l, !e,e! (a! is"!a(e %!a($i(all' a sha& si(e ais"!a(e ()&%a' (a easil' es(a%e lia:ili$' :' (i$ig !es$!i($i)s 9hi(h a!e )$a%%li(a:le )! ge!&ae $) $he (lai& $he!e:' !e,"(ig i,e&i$' $) a sha,)9.

7. ID.; ID.; INSURANCE POLICY MEANT TO BE ADDITIONAL SECURITY TO PRINCIPALCONTRACT; CASE AT BAR. The is"!a(e %)li(' 9as $he!e+)!e &ea$ $) :e aa,,i$i)al se("!i$' $) $he %!i(i%al ()$!a($ $ha$ is $) is"!e $ha$ $he %!)&iss)!')$e 9ill :e %ai, i (ase $he a"$)&):ile is l)s$ $h!)"gh a((i,e$ )! $he+$. The Cha$$elM)!$gage C)$!a($ %!)*i,e, $ha$?# THE SAID MORTGAGOR COFENANTS AND AGREES

THAT HEQIT WILL CAUSE THE PROPERTYQIES HEREIN6ABOFE MORTGAGED TO BEINSURED AGAINST LOSS OR DAMAGE BY ACCIDENT THET AND IRE OR A PERIOD

O ONE YEAR ROM DATE HEREO AND EFERY YEAR THEREATER UNTIL THEMORTGAGE OBLIGATION IS ULLY PAID WITH AN INSURANCE COMPANY ORCOMPANIES ACCEPTABLE TO THE MORTGAGEE IN AN AMOUNT NOT LESS THAN THEOUTSTANDING BALANCE O THE MORTGAGE OBLIGATION; THAT HEQIT WILL MAE ALLLOSS I ANY UNDER SUCH POLICY OR POLICIES PAYABLE TO THE MORTGAGEE ORITS ASSIGNS AS ITS INTERESTS MAY APPEAR AND ORTHWITH DELIFER SUCH POLICYOR POLICIES TO THE MORTGAGEE . . .# I$ is (lea! +!)& $he a:)*e&e$i)e, %!)*isi)$ha$ "%) $he l)ss )+ $he is"!e, *ehi(le $he is"!a(e ()&%a' Pe!la ",e!$a-es $)%a' ,i!e($l' $) $he &)!$gag)! )! $) $hei! assigee CP $he )"$s$a,ig :ala(e )+$he &)!$gage a$ $he $i&e )+ sai, l)ss ",e! $he &)!$gage ()$!a($.

34


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. CIFIL LAW; CONTRACTS; CHATTEL MORTGAGE; MERELY AN ACCESSORY TOPROMISSORY NOTE; PRINCIPAL CONTRACT UNAECTED BY WHATEFER BEALLSACCESSORY CONTRACT; CASE AT BAR. The (ha$$el &)!$gage ()s$i$"$e, )*e! $hea"$)&):ile is &e!el' a a((ess)!' ()$!a($ $) $he %!)&iss)!' )$e. Beig $he%!i(i%al ()$!a($ $he %!)&iss)!' )$e is "a=e($e, :' 9ha$e*e! :e+alls $he s":e($&a$$e! )+ $he a((ess)!' ()$!a($. The!e+)!e $he "%ai, :ala(e ) $he %!)&iss)!')$e sh)"l, :e %ai, a, )$ "s$ $he is$all&e$s ,"e a, %a'a:le :e+)!e $hea"$)&):ile 9as (a!a%%e, as e!!))"sl' hel, :' $he C)"!$ )+ A%%eals.

. ID.; DAMAGES; MAER NOT LIABLE OR INTEREST LIUIDATED DAMAGES ANDATTORNEYS EES STIPULATED IN PROMISSORY NOTE REMAINING UNPAID DUE TOINSURERS DENIAL O A FALID CLAIM; CASE AT BAR. Be(a"se %e$i$i)e! Pe!la ha,"!eas)a:l' ,eie, $hei! *ali, (lai& %!i*a$e !es%),e$s sh)"l, )$ :e &a,e $)%a' $he i$e!es$ li27 a, $he )$he! :' CP C!e,i$ C)!%)!a$i) i G.R. N).>> :)$h see-ig $) a"l a, se$ asi,e $he ,e(isi) ,a$e, 3"l' @ 1>>@ 1 )+ $heC)"!$ )+ A%%eals i CA6G.R. N). 1@4 9hi(h !e*e!se, $he ,e(isi) )+ $he Regi)al

T!ial C)"!$ )+ Maila B!a(h FIII i Ci*il Case N). 561>@>5 +)! !e%le*i a, ,a&ages.The ,is%)si$i*e %)!$i) )+ $he ,e(isi) )+ $he C)"!$ )+ A%%eals !ea,s as +)ll)9s?

#WHEREORE $he ,e(isi) a%%eale, +!)& is !e*e!se, a, a%%ellee Pe!la C)&%aia,e Seg"!)s I(. is )!,e!e, $) i,e&i+' a%%ella$s He!&ii) a, E*el' Li& +)! $hel)ss )+ $hei! is"!e, *ehi(le; 9hile sai, a%%ella$s a!e )!,e!e, $) %a' a%%ellee CPC!e,i$ C)!%)!a$i) all $he "%ai, is$all&e$s $ha$ 9e!e ,"e a, %a'a:le :e+)!e $he,a$e sai, *ehi(le 9as (a!a%%e,; a, a%%ellee Pe!la C)&%aia ,e Seg"!)s I(. isals) )!,e!e, $) %a' a%%ella$s &)!al ,a&ages )+ P17@@@.@@ +)! $he la$$e!s &e$als"=e!igs e/e&%la!' ,a&ages )+ P7@@@@.@@ +)! a%%ellee Pe!la C)&%aia ,e

Seg"!)s. I(.s "!eas)a:le !e+"sal ) sha& g!)",s $) h))! $he "s$ is"!a(e(lai& )+ a%%ella$s :' 9a' )+ e/a&%le a, ()!!e($i) +)! %":li( g)), a, a$$)!e's+ees )+ P1@@@@.@@ as a "s$ a, e51 %!i*a$e !es%),e$s s%)"ses He!&ii) a, E*el' Li&e/e("$e, a %!)&iss)!' )$e i +a*)! )+ S"%e!(a!s I(. i $he s"& )+ P44>@.@@

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%a'a:le i &)$hl' is$all&e$s a(()!,ig $) $he s(he,"le )+ %a'&e$ i,i(a$e, isai, )$e a, se("!e, :' a (ha$$el &)!$gage )*e! a :!a, e9 !e, )!, Lase!1@@ 2DR Ha$(h:a(- 1>51 &),el 9i$h &)$)! a, se!ial N). SUP3Y6@45@ 9hi(h is!egis$e!e, ",e! $he a&e )+ %!i*a$e !es%),e$ He!&ii) Li& a, is"!e, 9i$h $he%e$i$i)e! Pe!la C)&%aia ,e Seg"!)s I(. 0Pe!la +)! :!e*i$'8 +)! ()&%!ehesi*e()*e!age ",e! P)li(' N). PCQ1PP6CB65. 2

O $he sa&e ,a$e S"%e!(a!s I(. 9i$h )$i(e $) %!i*a$e !es%),e$s s%)"sesassige, $) %e$i$i)e! CP C!e,i$ C)!%)!a$i) 0CP +)! :!e*i$'8 i$s !igh$s $i$le a,

i$e!es$ ) sai, %!)&iss)!' )$e a, (ha$$el &)!$gage as sh)9 :' $he Dee, )+Assig&e$.

A$ a!)", 7?@ P.M. )+ N)*e&:e! > 1>57 sai, *ehi(le 9as (a!a%%e, 9hile %a!-e, a$$he :a(- )+ B!)a,9a' Ce$!"& al)g N. D)&ig) S$!ee$ "e) Ci$'. P!i*a$e!es%),e$ E*el' Li& 9h) 9as ,!i*ig sai, (a! :e+)!e i$ 9as (a!a%%e,i&&e,ia$el' (alle, "% $he A$i6Ca!a%%ig Ui$ )+ $he Phili%%ie C)s$a:"la!' $)!e%)!$ sai, i(i,e$ a, $he!ea+$e! 9e$ $) $he ea!es$ %)li(e s":s$a$i) a$ A!ae$aC":a) $) &a-e a %)li(e !e%)!$ !ega!,ig sai, i(i,e$ as sh)9 :' $he (e!$i(a$i)iss"e, :' $he "e) Ci$' %)li(e. 4

O N)*e&:e! 1@ 1>57 %!i*a$e !es%),e$ E*el' Li& !e%)!$e, sai, i(i,e$ $) $heLa, T!as%)!$a$i) C)&&issi) i "e) Ci$' as sh)9 :' $he le$$e! )+ he!

()"sel $) sai, )(e 5 i ()&%lia(e 9i$h $he is"!a(e !e

O N)*e&:e! 11 1>57 %!i*a$e !es%),e$ le, a (lai& +)! l)ss 9i$h $he %e$i$i)e!Pe!la :"$ sai, (lai& 9as ,eie, ) N)*e&:e! 15 1>57 1@ ) $he g!)", $ha$ E*el'Li& 9h) 9as "sig $he *ehi(le :e+)!e i$ 9as (a!a%%e, 9as i %)ssessi) )+ ae/%i!e, ,!i*e!s li(ese a$ $he $i&e )+ $he l)ss )+ sai, *ehi(le 9hi(h is i *i)la$i) )+$he a"$h)!ie, ,!i*e! (la"se )+ $he is"!a(e %)li(' 9hi(h s$a$es $) 9i$?#AUTHORIED DRIFER?(ha!):1es *i!$"al 1a9 li:!a!'

A' )+ $he +)ll)9ig? 0a8 The Is"!e, 0:8 A' %e!s) ,!i*ig ) $he Is"!e,s )!,e! )!9i$h his %e!&issi). P!)*i,e, $ha$ $he %e!s) ,!i*ig is %e!&i$$e, i a(()!,a(e 9i$h$he li(esig )! )$he! la9s )! !eg"la$i)s $) ,!i*e $he S(he,"le, Fehi(le )! has :ee

%e!&i$$e, a, is )$ ,is %l"s i$e!es$ $he!e) a$ $he !a$e )+ 7 %e! a"&

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+!)& 3"l' 7 1>5 "$il +"ll' %ai,;

7. O!,e!ig ,e+e,a$s $) %a' %lai$i= P2@@@.@@ as a, +)! a$$)!e's +ees; a, $he()s$s )+ s"i$.

U%) $he )$he! ha, li-e9ise )!,e!ig $he DISMISSAL )+ $he Thi!, Pa!$' C)&%lai$le, agais$ Thi!,6Pa!$' De+e,a$.# 1

N)$ sa$ise, 9i$h sai, ,e(isi) %!i*a$e !es%),e$s a%%eale, $he sa&e $) $he C)"!$

)+ A%%eals 9hi(h !e*e!se, sai, ,e(isi).

A+$e! %e$i$i)e!s se%a!a$e &)$i)s +)! !e()si,e!a$i) 9e!e ,eie, :' $he C)"!$ )+A%%eals i i$s !es)l"$i) )+ De(e&:e! 1@ 1>>@ %e$i$i)e!s le, $hese se%a!a$e%e$i$i)s +)! !e*ie9 ) certiorari.

Pe$i$i)e! Pe!la allege, $ha$ $he!e 9as g!a*e a:"se )+ ,is(!e$i) ) $he %a!$ )+ $hea%%ella$e ()"!$ i h)l,ig $ha$ %!i*a$e !es%),e$s ,i, )$ *i)la$e $he is"!a(e()$!a($ :e(a"se $he a"$h)!ie, ,!i*e! (la"se is )$ a%%li(a:le $) $he #The+$# (la"se)+ sai, C)$!a($.

)! i$s %a!$ %e$i$i)e! CP !aise, $he iss"e )+ 9he$he! )! )$ $he l)ss )+ $he ()lla$e!ale/e&%$e, $he ,e:$)! +!)& his a,&i$$e, ):liga$i)s ",e! $he %!)&iss)!' )$e

%a!$i("la!l' $he %a'&e$ )+ i$e!es$ li$iga$i) e/%eses a, a$$)!e's +ees.

We , ) &e!i$ i Pe!las %e$i$i).

The ()&%!ehesi*e &)$)! (a! is"!a(e %)li(' iss"e, :' %e$i$i)e! Pe!la ",e!$))-$) i,e&i+' $he %!i*a$e !es%),e$s agais$ l)ss )! ,a&ages $) $he (a! 0a8 :'a((i,e$al ()llisi) )! )*e!$"!ig )! ()llisi) )! )*e!$"!ig ()se


38/85

I$ is 9)!$h' $) )$e $ha$ $he!e is ) (a"sal ()e($i) :e$9ee $he %)ssessi) )+ a*ali, ,!i*e!s li(ese a, $he l)ss )+ a *ehi(le. T) !"le )$he!9ise 9)"l, !e,e! (a!is"!a(e %!a($i(all' a sha& si(e a is"!a(e ()&%a' (a easil' es(a%e lia:ili$':' (i$ig !es$!i($i)s 9hi(h a!e )$ a%%li(a:le )! ge!&ae $) $he (lai& $he!e:'!e,"(ig i,e&i$' $) a sha,)9.

We h)9e*e! , $he %e$i$i) )+ CP &e!i$)!i)"s.

This C)"!$ ag!ees 9i$h %e$i$i)e! CP $ha$ %!i*a$e !es%),e$s a!e )$ !elie*e, )+

$hei! ):liga$i) $) %a' $he +)!&e! $he is$all&e$s ,"e ) $he %!)&iss)!' )$e )a(()"$ )+ $he l)ss )+ $he a"$)&):ile. The (ha$$el &)!$gage ()s$i$"$e, )*e! $hea"$)&):ile is &e!el' a a((ess)!' ()$!a($ $) $he %!)&iss)!' )$e. Beig $he%!i(i%al ()$!a($ $he %!)&iss)!' )$e is "a=e($e, :' 9ha$e*e! :e+alls $he s":e($&a$$e! )+ $he a((ess)!' ()$!a($. The!e+)!e $he "%ai, :ala(e ) $he %!)&iss)!')$e sh)"l, :e %ai, a, )$ "s$ $he is$all&e$s ,"e a, %a'a:le :e+)!e $hea"$)&):ile 9as (a!a%%e, as e!!))"sl' hel, :' $he C)"!$ )+ A%%eals.

H)9e*e! $his ,)es )$ &ea $ha$ %!i*a$e !es%),e$s a!e :)", $) %a' $he i$e!es$li$iga$i) e/%eses a, a$$)!e's +ees s$i%"la$e, i $he %!)&iss)!' )$e. Be(a"se )+$he %e("lia! !ela$i)shi% :e$9ee $he $h!ee ()$!a($s i $his (ase i. e. $he%!)&iss)!' )$e $he (ha$$el &)!$gage ()$!a($ a, $he is"!a(e %)li(' $his C)"!$ is()&%elle, $) ()s$!"e all $h!ee ()$!a($s as i$i&a$el' i$e!!ela$e, $) ea(h )$he!

,es%i$e $he +a($ $ha$ a$ !s$ gla(e $he!e is ) !ela$i)shi% 9ha$s)e*e! :e$9ee $he%a!$ies $he!e$).

U,e! $he %!)&iss)!' )$e %!i*a$e !es%),e$s a!e ):lige, $) %a' S"%e!(a!s I(.$he a&)"$ s$a$e, $he!ei i a(()!,a(e 9i$h $he s(he,"le %!)*i,e, +)!. T) se("!esai, %!)&iss)!' )$e %!i*a$e !es%),e$s ()s$i$"$e, a (ha$$el &)!$gage i +a*)! )+S"%e!(a!s I(. )*e! $he a"$)&):ile $he +)!&e! %"!(hase, +!)& $he la$$e!. The (ha$$el&)!$gage i $"! !e


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!es%),e$s ):liga$i) $) %e$i$i)e! CP. The!e+)!e %!i*a$e !es%),e$s 9e!e"s$ie, i as-ig %e$i$i)e! CP $) ,e&a, $he "%ai, is$all&e$s +!)& %e$i$i)e!Pe!la.

Be(a"se %e$i$i)e! Pe!la ha, "!eas)a:l' ,eie, $hei! *ali, (lai& %!i*a$e!es%),e$s sh)"l, )$ :e &a,e $) %a' $he i$e!es$ li57"% $) 3"l' 1 1>5 as sh)9 i $he s$a$e&e$ )+ a(()"$ %!e%a!e, :' %e$i$i)e! CP15 %l"s legal i$e!es$ +!)& 3"l' 7 1>5 "$il +"ll' %ai,.As $) $he a9a!, )+ &)!al ,a&ages e/e&%la!' ,a&ages a, a$$)!e's +ees %!i*a$e

!es%),e$s a!e legall' e$i$le, $) $he sa&e si(e %e$i$i)e! Pe!la ha, a($e, i :a,+ai$h :' "!eas)a:l' !e+"sig $) h))! $he is"!a(e (lai& )+ $he %!i*a$e!es%),e$s. Besi,es a9a!,s +)! &)!al a, e/e&%la!' ,a&ages as 9ell asa$$)!e's +ees a!e le+$ $) $he s)", ,is(!e$i) )+ $he C)"!$. S"(h ,is(!e$i) i+ 9elle/e!(ise, 9ill )$ :e ,is$"!:e, ) a%%eal. 1>

WHEREORE $he assaile, ,e(isi) )+ $he C)"!$ )+ A%%eals is he!e:' MODIIED $)!e 9i$hlegal i$e!es$ +!)& 3"l' 7 1>5 "$il +"ll' %ai,. The ,e(isi) a%%eale, +!)& is he!e:'a!&e, as $) all )$he! !es%e($s. N) %!))"(e&e$ as $) ()s$s.

SO ORDERED.

1>., G.R. No. 11BB24. Febr(#r0 6, 1995.]

AR'ANDO G!AGONIA, Petitioner, v.COURT OF A!AL" #$%COUNTR/ ANH!R" IN"URANC! CORORATION, Respondents.

D E C I S I O N

DAFIDE 3R.J.?

)! )"! !e*ie9 ",e! R"le 2 )+ $he R"les )+ C)"!$ is $he ,e(isi) 1 )+ $he C)"!$ )+A%%eals i CA6G.R. SP N). 1>1 e$i$le, #C)"$!' Ba-e!s Is"!a(e C)!%)!a$i)*e!s"s A!&a,) Geag)ia# !e*e!sig $he ,e(isi) )+ $he Is"!a(e C)&&issi) iI.C. Case N). @ 9hi(h a9a!,e, $he (lai& )+ %e$i$i)e! A!&a,) Geag)ia agais$%!i*a$e !es%),e$ C)"$!' Ba-e!s Is"!a(e C)!%)!a$i).

The %e$i$i)e! is $he )9e! )+ N)!&as Ma!$ l)(a$e, i $he %":li( &a!-e$ )+ Sa!a(is() Ag"sa ,el S"!. O 77 De(e&:e! 1>5> he ):$aie, +!)& $he %!i*a$e!es%),e$ !e is"!a(e %)li(' N). 6177 7 +)! P1@@@@@.@@. The %e!i), )+ $he%)li(' 9as +!)& 77 De(e&:e! 1>5> $) 77 De(e&:e! 1>>@ a, ()*e!e, $he +)ll)9ig?

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#S$)(-6i6$!a,e ()sis$ig %!i(i%all' )+ ,!' g)),s s"(h as RTWs +)! &e a, 9)&e9ea! a, )$he! "s"al $) ass"!e,s :"siess.#

The %e$i$i)e! ,e(la!e, i $he %)li(' ",e! $he s":hea,ig e$i$le, CO6INSURANCE$ha$ Me!(a$ile Is"!a(e C). I(. 9as $he ()6is"!e! +)! P2@@@@.@@. !)& 1>5> $)1>>@ $he %e$i$i)e! ha, i his i*e$)!' s$)(-s a&)"$ig $) P>[email protected]@ i$e&ie,as +)ll)9s?a,(ha!):les*i!$"ala9li:!a!'

e() Sales I(. P22>5.@@

. Legas%i Ge. Me!(ha,ise 57.2@

Ce:" Tesig Te/$iles 72@@@@.@@ 0) (!e,i$8

XXXXXXXX

P>[email protected]@

The %)li(' ()$aie, $he +)ll)9ig (),i$i)?

#. The is"!e, shall gi*e )$i(e $) $he C)&%a' )+ a' is"!a(e )! is"!a(esal!ea,' e=e($e, )! 9hi(h &a' s":se>@ $he %!i*a$e !es%),e$ ,eie, $he (lai& :e(a"se i$

+)", $ha$ a$ $he $i&e )+ $he l)ss $he %e$i$i)e!s s$)(-s6i6$!a,e 9e!e li-e9ise()*e!e, :' !e is"!a(e %)li(ies N). GA6751 a, N). GA6751 +)! P1@@@@@.@@ea(h iss"e, :' $he Ce:" B!a(h )+ $he Phili%%ies i!s$ Is"!a(e C). I(.0he!eia+$e! PIC8. These %)li(ies i,i(a$e $ha$ $he is"!e, 9as #Mess!s. Dis()"$Ma!$ 0M!. A!&a,) Geag)ia P!)%.8# 9i$h a &)!$gage (la"se !ea,ig?#MORTGAGEE? L)ss i+ a' shall :e %a'a:le $) Mess!s.

Ce:" Tesig Te/$iles Ce:" Ci$' as $hei!

i$e!es$ &a' a%%ea! s":e($ $) $he $e!&s )+

$his %)li('. CO6INSURANCE DECLARED?P1@@@@@. Phils. i!s$ CEBQ67425#

The :asis )+ $he %!i*a$e !es%),e$s ,eial 9as $he %e$i$i)e!s allege, *i)la$i) )+C),i$i) )+ $he %)li('.

The %e$i$i)e! $he le, a ()&%lai$ 2 agais$ $he %!i*a$e !es%),e$ 9i$h $heIs"!a(e C)&&issi) 0Case N). @8 +)! $he !e()*e!' )+ P1@@@@@.@@ ",e! !eis"!a(e %)li(' N). 6177 a, +)! a$$)!e's +ees a, ()s$s )+ li$iga$i). Hea$$a(he, as Ae/ #M# $he!e)+ his le$$e! )+ 15 3a"a!' 1>>1 9hi(h as-e, +)! $he!e()si,e!a$i) )+ $he ,eial. He a,&i$$e, i $he sai, le$$e! $ha$ a$ $he $i&e he):$aie, $he %!i*a$e !es%),e$s !e is"!a(e %)li(' he -e9 $ha$ $he $9) %)li(ies

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iss"e, :' $he PIC 9e!e al!ea,' i e/is$e(e; h)9e*e! he ha, ) -)9le,ge )+ $he%!)*isi) i $he %!i*a$e !es%),e$s %)li(' !e> 5 $he Is"!a(e C)&&issi) +)", $ha$ $he %e$i$i)e!,i, )$ *i)la$e C),i$i) as he ha, ) -)9le,ge )+ $he e/is$e(e )+ $he $9) !eis"!a(e %)li(ies ):$aie, +!)& $he PIC; $ha$ i$ 9as Ce:" Tesig Te/$iles 9hi(h%!)("!e, $he PIC %)li(ies 9i$h)"$ i+)!&ig hi& )! se("!ig his ()se$; a, $ha$Ce:" Tesig Te/$ile as his (!e,i$)! ha, is"!a:le i$e!es$ ) $he s$)(-s. These,igs 9e!e :ase, ) $he %e$i$i)e!s $es$i&)' $ha$ he (a&e $) -)9 )+ $he PIC%)li(ies )l' 9he he le, his (lai& 9i$h $he %!i*a$e !es%),e$ a, $ha$ Ce:" Tesig

Te/$ile ):$aie, $he& a, %ai, +)! $hei! %!e&i"&s 9i$h)"$ i+)!&ig hi& $he!e)+. TheIs"!a(e C)&&issi) $he ,e(!ee,

#WHEREORE ",g&e$ is he!e:' !e,e!e, )!,e!ig $he !es%),e$ ()&%a' $) %a'()&%laia$ $he s"& )+ P1@@@@@.@@ 9i$h legal i$e!es$ +!)& $he $i&e $he ()&%lai$

9as le, "$il +"ll' sa$ise, %l"s $he a&)"$ )+ P1@@@@.@@ as a$$)!e's +ees. Wi$h()s$s. The ()&%"ls)!' ()"$e!(lai& )+ !es%),e$ is he!e:' ,is&isse,.#

I$s &)$i) +)! $he !e()si,e!a$i) )+ $he ,e(isi) > ha*ig :ee ,eie, :' $heIs"!a(e C)&&issi) i i$s !es)l"$i) )+ 7@ A"g"s$ 1>> 1@ $he %!i*a$e !es%),e$a%%eale, $) $he C)"!$ )+ A%%eals :' 9a' )+ a %e$i$i) +)! !e*ie9. The %e$i$i) 9as,)(-e$e, as CA6G.R. SP N). 1>1.

I i$s ,e(isi) )+ 7> De(e&:e! 1>> 11 $he C)"!$ )+ A%%eals !e*e!se, $he ,e(isi) )+$he Is"!a(e C)&&issi) :e(a"se i$ +)", $ha$ $he %e$i$i)e! -e9 )+ $he e/is$e(e)+ $he $9) )$he! %)li(ies iss"e, :' $he PIC. I$ sai,?#I$ is a%%a!e$ +!)& $he +a(e )+ i!e P)li(' GA 751Qi!e P)li(' N). 751 $ha$ $heis"!a(e 9as $a-e i $he a&e )+ %!i*a$e !es%),e$ %e$i$i)e! he!ei. The %)li('

s$a$es $ha$ DISCOUNT MART 0MR. ARMANDO GEAGONIA PROP8 9as ass"!e, a, $ha$TESING TEJTILES 9as )l' $he &)!$gagee )+ $he g)),s.

I a,,i$i) $he %!e&i"&s ) :)$h %)li(ies 9e!e %ai, +)! :' %!i*a$e !es%),e$ )$:' $he Tesig Te/$iles 9hi(h is allege, $) ha*e $a-e )"$ $he )$he! is"!a(es 9i$h)"$$he -)9le,ge )+ %!i*a$e !es%),e$. This is sh)9 :' P!e&i"& I*)i(es )s. 7a, @. 0Ae/es M a, N8. I :)$h i*)i(es Tesig Te/$iles is i,i(a$e, $) :e)l' $he &)!$gagee )+ $he g)),s is"!e, :"$ $he %a!$' $) 9hi(h $he' 9e!e iss"e,9e!e $he DISCOUNT MART 0MR. ARMANDO GEAGONIA8.

I$ is (lea! $ha$ i$ 9as $he %!i*a$e !es%),e$ %e$i$i)e! he!ei 9h) $))- )"$ $he%)li(ies ) $he sa&e %!)%e!$' s":e($ )+ $he is"!a(e 9i$h %e$i$i)e!. He(e i+ailig $) ,is(l)se $he e/is$e(e )+ $hese is"!a(es %!i*a$e !es%),e$ *i)la$e,

C),i$i) N). )+ i!e P)li(' N). 177. . . .

I,ee, %!i*a$e !es%),e$s allega$i) )+ la(- )+ -)9le,ge )+ $he %!e*i)"sis"!a(es is :elie, :' his le$$e! $) %e$i$i)e! )+ 15 3a"a!' 1>>1. The :),' )+ $hele$$e! !ea,s as +)ll)9s?

xxx xxx xxx

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Please :e i+)!&e, $ha$ I ha*e ) -)9le,ge )+ $he %!)*isi) !e


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As $) $he !s$ iss"e $he Is"!a(e C)&&issi) +)", $ha$ $he %e$i$i)e! ha, )-)9le,ge )+ $he %!e*i)"s $9) %)li(ies. The C)"!$ )+ A%%eals ,isag!ee, a, +)",)$he!9ise i *ie9 )+ $he e/%li(i$ a,&issi) :' $he %e$i$i)e! i his le$$e! $) $he %!i*a$e!es%),e$ )+ 15 3a"a!' 1>>1 9hi(h 9as >1 $) $he %!i*a$e !es%),e$()(l"si*el' %!)*es $his -)9le,ge. His $es$i&)' $) $he ()$!a!' :e+)!e $heIs"!a(e C)&&issi)e! a, 9hi(h $he la$$e! !elie, "%) (a)$ %!e*ail )*e! a9!i$$e a,&issi) &a,e a$e li$e& &)$a&. I$ 9as i,ee, i(!e,i:le $ha$ he ,i, )$-)9 a:)"$ $he %!i)! %)li(ies si(e $hese %)li(ies 9e!e )$ e9 )! )!igial. P)li(' N).GA6751 9as a !ee9al )+ P)li(' N). 67425 9hile P)li(' N). GA6751 ha, :ee!ee9e, $9i(e $he %!e*i)"s %)li(' :eig 674>7.

C),i$i) )+ $he %!i*a$e !es%),e$s P)li(' N). 6177 is a (),i$i) 9hi(h is )$%!)s(!i:e, :' la9. I$s i()!%)!a$i) i $he %)li(' is all)9e, :' Se($i) 42 )+ $heIs"!a(e C),e 12 9hi(h %!)*i,es $ha$ #a %)li(' &a' ,e(la!e $ha$ a *i)la$i) )+s%e(ie, %!)*isi)s $he!e)+ shall a*)i, i$ )$he!9ise $he :!ea(h )+ a i&&a$e!ial

%!)*isi) ,)es )$ a*)i, $he %)li('.# S"(h a (),i$i) is a %!)*isi) 9hi(h i*a!ia:l'a%%ea!s i !e is"!a(e %)li(ies a, is i$e,e, $) %!e*e$ a i(!ease i $he &)!alhaa!,. I$ is ()&&)l' -)9 as $he a,,i$i)al )! #)$he! is"!a(e# (la"se a, has:ee "%hel, as *ali, a, as a 9a!!a$' $ha$ ) )$he! is"!a(e e/is$s. I$s *i)la$i)9)"l, $h"s a*)i, $he %)li('. 1 H)9e*e! i )!,e! $) ()s$i$"$e a *i)la$i) $he )$he!is"!a(e &"s$ :e "%) $he sa&e s":e($ &a$$e! $he sa&e i$e!es$ $he!ei a, $hesa&e !is-. 14

As $) a &)!$gage, %!)%e!$' $he &)!$gag)! a, $he &)!$gagee ha*e ea(h ai,e%e,e$ is"!a:le i$e!es$ $he!ei a, :)$h i$e!es$s &a' :e ()*e!e, :' )e%)li(' )! ea(h &a' $a-e )"$ a se%a!a$e %)li(' ()*e!ig his i$e!es$ ei$he! a$ $hesa&e )! a$ se%a!a$e $i&es. 15 The &)!$gag)!s is"!a:le i$e!es$ ()*e!s $he +"ll*al"e )+ $he &)!$gage, %!)%e!$' e*e $h)"gh $he &)!$gage ,e:$ is e


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i$sel+. He(e a' a($ )+ $he &)!$gag)! 9hi(h ,e+ea$s his !igh$ 9ill als) ,e+ea$ $he!igh$ )+ $he &)!$gagee. 77 This -i, )+ %)li(' ()*e!s )l' s"(h i$e!es$ as $he&)!$gagee has a$ $he iss"ig )+ $he %)li('. 7

O $he )$he! ha, a &)!$gagee &a' als) %!)("!e a %)li(' as a ()$!a($ig %a!$' ia(()!,a(e 9i$h $he $e!&s )+ a ag!ee&e$ :' 9hi(h $he &)!$gag)! is $) %a' $he%!e&i"&s "%) s"(h is"!a(e. 7 I$ has :ee )$e, h)9e*e! $ha$ al$h)"gh $he&)!$gagee is hi&sel+ $he is"!e, as 9he!e he a%%lies +)! a %)li(' +"ll' i+)!&s $hea"$h)!ie, age$ )+ his i$e!es$ %a's $he %!e&i"&s a, ):$ais a %)li(' ) $he

ass"!a(e $ha$ i$ is"!es hi& $he %)li(' is i +a($ i $he +)!& "se, $) is"!e a&)!$gag)! 9i$h l)ss %a'a:le (la"se. 72

The !e is"!a(e %)li(ies iss"e, :' $he PIC a&e $he %e$i$i)e! as $he ass"!e, a,()$ai a &)!$gage (la"se 9hi(h !ea,s?#L)ss i+ a' shall :e %a'a:le $) MESSRS. TESING TEJTILES Ce:" Ci$' as $hei!i$e!es$ &a' a%%ea! s":e($ $) $he $e!&s )+ $he %)li('.#

This is (lea!l' a si&%le l)ss %a'a:le (la"se )$ a s$a,a!, &)!$gage (la"se.

I$ &"s$ h)9e*e! :e ",e!s()!e, $ha$ "li-e $he #)$he! is"!a(e# (la"ses i*)l*e,i Gee!al Is"!a(e a, S"!e$' C)!%. *s. Ng H"a 7 )! i Pi)ee! Is"!a(e S"!e$'C)!%. *s. Ya% 74 9hi(h !ea,?

#The is"!e, shall gi*e )$i(e $) $he ()&%a' )+ a' is"!a(e )! is"!a(es al!ea,'e=e($e, )! 9hi(h &a' s":se


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Wi$h $hese %!i(i%les i &i, 9e a!e )+ $he )%ii) $ha$ C),i$i) )+ $he s":e($%)li(' is )$ $)$all' +!ee +!)& a&:ig"i$' a, &"s$ %e!+)!(e :e &e$i("l)"sl'aal'e,. S"(h aal'sis lea,s "s $) ()(l",e $ha$ 0a8 $he %!)hi:i$i) a%%lies )l' $),)":le is"!a(e a, 0:8 $he "lli$' )+ $he %)li(' shall )l' :e $) $he e/$e$e/(ee,ig P7@@@@@.@@ )+ $he $)$al %)li(ies ):$aie,.

The !s$ ()(l"si) is s"%%)!$e, :' $he %)!$i) )+ $he (),i$i) !e+e!!ig $) )$he!is"!a(e #()*e!ig a' )+ $he %!)%e!$' )! %!)%e!$ies ()sis$ig )+ s$)(-s i $!a,eg)),s i %!)(ess a,Q)! i*e$)!ies )l' he!e:' is"!e,# a, $he %)!$i) !ega!,ig

$he is"!e,s ,e(la!a$i) ) $he s":hea,ig CO6INSURANCE $ha$ $he ()6is"!e! isMe!(a$ile Is"!a(e C). I(. i $he s"& )+ P2@@@@.@@. A ,)":le is"!a(e e/is$s9he!e $he sa&e %e!s) is is"!e, :' se*e!al is"!e!s se%a!a$el' i !es%e($ )+ $hesa&e s":e($ a, i$e!es$. As ea!lie! s$a$e, $he is"!a:le i$e!es$s )+ a &)!$gag)!a, a &)!$gagee ) $he &)!$gage, %!)%e!$' a!e ,is$i($ a, se%a!a$e. Si(e $he $9)%)li(ies )+ $he PIC ,) )$ ()*e! $he sa&e i$e!es$ as $ha$ ()*e!e, :' $he %)li(' )+$he %!i*a$e !es%),e$ ) ,)":le is"!a(e e/is$s. The )6,is(l)s"!e $he )+ $he+)!&e! %)li(ies 9as )$ +a$al $) $he %e$i$i)e!s !igh$ $) !e()*e! ) $he %!i*a$e!es%),e$s %)li('.

"!$he!&)!e :' s$a$ig 9i$hi C),i$i) i$sel+ $ha$ s"(h (),i$i) shall )$ a%%l' i+$he $)$al is"!a(e i +)!(e a$ $he $i&e )+ l)ss ,)es )$ e/(ee, P7@@@@@.@@ $he%!i*a$e !es%),e$ 9as a&ea:le $) ass"&e a ()6is"!e!s lia:ili$' "% $) a l)ss )$

e/(ee,ig P7@@@@@.@@. Wha$ i$ ha, i &i, 9as $) ,is()"!age )*e!6is"!a(e.I,ee, $he !a$i)ale :ehi, $he i()!%)!a$i) )+ #)$he! is"!a(e# (la"se i !e%)li(ies is $) %!e*e$ )*e!6is"!a(e a, $h"s a*e!$ $he %e!%e$!a$i) )+ +!a",. Whe a%!)%e!$' )9e! ):$ais is"!a(e %)li(ies +!)& $9) )! &)!e is"!e!s i a $)$ala&)"$ $ha$ e/(ee,s $he %!)%e!$'s *al"e $he is"!e, &a' ha*e a i,"(e&e$ $),es$!)' $he %!)%e!$' +)! $he %"!%)se )+ ()lle($ig $he is"!a(e. The %":li( as 9ell as$he is"!e! is i$e!es$e, i %!e*e$ig a si$"a$i) i 9hi(h a !e 9)"l, :e %!)$a:le $)$he is"!e,. 7

WHEREORE $he is$a$ %e$i$i) is he!e:' GRANTED. The ,e(isi) )+ $he C)"!$ )+A%%eals i CA6G.R. SP N). 1>1 is SET ASIDE a, $he ,e(isi) )+ $he Is"!a(eC)&&issi) i Case N). @ is REINSTATED.

C)s$s agais$ %!i*a$e !es%),e$ C)"$!' Ba-e!s Is"!a(e C)!%)!a$i).

SO ORDERED.

113G.R. No. 115248. '#0 2=, 1995.]

FORTUN! IN"URANC! AND "UR!T/ CO., INC., Petitioner,v.COURT OF A!AL" #$% RODUC!R" ANH OF T&!&ILIIN!", Respondents.

D E C I S I O N

DAFIDE 3R.J.?

The +",a&e$al legal iss"e !aise, i $his %e$i$i) +)! !e*ie9 ) Certiorariis 9he$he!$he %e$i$i)e! is lia:le ",e! $he M)e' Se("!i$' a, Pa'!)ll R)::e!' %)li(' i$ iss"e,$) $he iss"e, $) $he %!i*a$e !es%),e$ )! 9he$he! !e()*e!' $he!e",e! is %!e(l",e,",e! $he gee!al e/(e%$i)s (la"se $he!e)+. B)$h $he $!ial ()"!$ a, $he C)"!$ )+A%%eals hel, $ha$ $he!e sh)"l, :e !e()*e!'. The %e$i$i)e! ()$e,s )$he!9ise.

This (ase :ega 9i$h $he lig 9i$h $he Regi)al T!ial C)"!$ 0RTC8 )+ Ma-a$i Me$!)

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Maila :' %!i*a$e !es%),e$ P!),"(e!s Ba- )+ $he Phili%%ies 0he!eia+$e!P!),"(e!s8 agais$ %e$i$i)e! )!$"e Is"!a(e a, S"!e$' C). I(. 0he!eia+$e!)!$"e8 )+ a ()&%lai$ +)! !e()*e!' )+ $he s"& )+ P472@@@.@@ ",e! $he %)li('iss"e, :' )!$"e. The s"& 9as allege,l' l)s$ ,"!ig a !)::e!' )+ P!),"(e!s a!&)!e,*ehi(le 9hile i$ 9as i $!asi$ $) $!as+e! $he &)e' +!)& i$s Pasa' Ci$' B!a(h $) i$shea, )(e i Ma-a$i. The (ase 9as ,)(-e$e, as Ci*il Case N). 1514 a, assige, $)B!a(h 1 $he!e)+.

A+$e! )i,e! )+ iss"es $he %a!$ies as-e, $he $!ial ()"!$ $) !e,e! ",g&e$ :ase, )

$he +)ll)9ig s$i%"la$i) )+ +a($s?a,(ha!):les*i!$"ala9li:!a!'

1. The %lai$i= 9as is"!e, :' $he ,e+e,a$s a, a is"!a(e %)li(' 9as iss"e,$he ,"%li(a$e )!igial )+ 9hi(h is he!e$) a$$a(he, as E/hi:i$ #A#;

7. A a!&)!e, (a! )+ $he %lai$i= 9hile i $he %!)(ess )+ $!as+e!!ig (ash i $he s"&)+ P472@@@.@@ ",e! $he ("s$),' )+ i$s $elle! Ma!i:e$h Ala&%a' +!)& i$s Pasa'B!a(h $) i$s Hea, O(e a$ 544 Pase) ,e R)/as Ma-a$i Me$!) Maila ) 3"e 7>1>54 9as !)::e, )+ $he sai, (ash. The !)::e!' $))- %la(e 9hile $he a!&)!e, (a! 9as$!a*elig al)g Ta+$ A*e"e i Pasa' Ci$';

. The sai, a!&)!e, (a! 9as ,!i*e :' Bea&i Magal)g ' ,e Fe!a es()!$e, :'Se("!i$' G"a!, Sa$"!i) A$iga ' R)se$e. D!i*e! Magal)g 9as assige, :' PRC

Maage&e$ S's$e&s 9i$h $he %lai$i= :' *i!$"e )+ a Ag!ee&e$ e/e("$e, )A"g"s$ 4 1>5 a ,"%li(a$e )!igial ()%' )+ 9hi(h is he!e$) a$$a(he, as E/hi:i$ #B#;

. The Se("!i$' G"a!, A$iga 9as assige, :' Ui()! Se("!i$' Se!*i(es I(. 9i$h $he%lai$i= :' *i!$"e )+ a ()$!a($ )+ Se("!i$' Se!*i(e e/e("$e, ) O($):e! 72 1>57 a,"%li(a$e )!igial ()%' )+ 9hi(h is he!e$) a$$a(he, as E/hi:i$ #C#;

2. A+$e! a i*es$iga$i) (),"($e, :' $he Pasa' %)li(e a"$h)!i$ies $he ,!i*e!Magal)g a, g"a!, A$iga 9e!e (ha!ge, $)ge$he! 9i$h E,el&e! Ba$ig"e Y E"lali)Re'al,) A


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Magal)g a!e )$ i$s #)(e! e&%l)'ee . . . $!"s$ee )! a"$h)!ie, !e%!ese$a$i*e . . .a$ $he $i&e )+ $he !)::e!'. 1

O 7 A%!il 1>>@ $he $!ial ()"!$ !e,e!e, i$s ,e(isi) i +a*)! )+ P!),"(e!s. The,is%)si$i*e %)!$i) $he!e)+ !ea,s as +)ll)9s? WHEREORE %!e&ises ()si,e!e, $heC)"!$ ,s +)! %lai$i= a, agais$ ,e+e,a$ a,

0a8 )!,e!s ,e+e,a$ $) %a' %lai$i= $he e$ a&)"$ )+ P2@@@@.@@ as lia:ili$' ",e!P)li(' N). @7@4 0as &i$iga$e, :' $he P@@@@.@@ s%e(ial (la"se ,e,"($i) a, :' $he

!e()*e!e, s"& )+ P12@@@.@@8 9i$h i$e!es$ $he!e) a$ $he legal !a$e "$il +"ll'%ai,;

0:8 )!,e!s ,e+e,a$ $) %a' %lai$i= $he s"& )+ P@@@@.@@ as a, +)! a$$)!e's +ees;a,

0(8 )!,e!s ,e+e,a$ $) %a' ()s$s )+ s"i$.

All )$he! (lai&s a, ()"$e!(lai&s a!e a(()!,igl' ,is&isse, +)!$h9i$h.

SO ORDERED. 7

The $!ial ()"!$ !"le, $ha$ Magal)g a, A$iga 9e!e )$ e&%l)'ees )! !e%!ese$a$i*es

)+ P!),"(e!s. I$ sai,?

The C)"!$ is sa$ise, $ha$ %lai$i= &a' )$ :e sai, $) ha*e sele($e, a, egage,Magal)g a, A$iga $hei! se!*i(es as a!&)!e, (a! ,!i*e! a, as se("!i$' g"a!,ha*ig :ee &e!el' )=e!e, :' PRC Maage&e$ a, :' Ui()! Se("!i$' a, 9hi(hla$$e! !&s assige, $he& $) %lai$i=. The 9ages a, sala!ies )+ :)$h Magal)g a,A$iga a!e %!es"&a:l' %ai, :' $hei! !es%e($i*e !&s 9hi(h al)e 9iel,s $he %)9e! $),is&iss $he&. Magal)g a, A$iga a!e assige, $) %lai$i= i +"lll&e$ )+ag!ee&e$s $) %!)*i,e ,!i*ig se!*i(es a, %!)%e!$' %!)$e($i) as s"(h i a()$e/$ 9hi(h ,)es )$ i&%!ess $he C)"!$ as $!asla$ig i$) %lai$i=s %)9e! $)()$!)l $he (),"($ )+ a' assige, ,!i*e! )! se("!i$' g"a!, :e'), %e!ha%se$i$lig %lai$i= $) !e> i$ a!&e, i

$)$) $he a%%eale, ,e(isi).

The C)"!$ )+ A%%eals ag!ee, 9i$h $he ()(l"si) )+ $he $!ial ()"!$ $ha$ Magal)g a,A$iga 9e!e ei$he! e&%l)'ees )! a"$h)!ie, !e%!ese$a$i*es )+ P!),"(e!s a,!a$i)(ia$e, as +)ll)9s?A %)li(' )! ()$!a($ )+ is"!a(e is $) :e ()s$!"e, li:e!all' i +a*)! )+ $he is"!e,a, s$!i($l' agais$ $he is"!a(e ()&%a' 0Ne9 Li+e E$e!%!ises *s. C)"!$ )+A%%eals 7@4 SCRA >; S" Is"!a(e O(e L$,. *s. C)"!$ )+ A%%eals 711 SCRA228. C)$!a($s )+ is"!a(e li-e )$he! ()$!a($s a!e $) :e ()s$!"e, a(()!,ig $)$he sese a, &eaig )+ $he $e!&s 9hi(h $he %a!$ies $he&sel*es ha*e "se,. I+ s"(h

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$e!&s a!e (lea! a, "a&:ig")"s $he' &"s$ :e $a-e a, ",e!s$)), i $hei! %lai)!,ia!' a, %)%"la! sese 0Ne9 Li+e E$e!%!ises Case s"%!a %. 4; S" Is"!a(eO(e L$,. *s. C)"!$ )+ A%%eals 1>2 SCRA 1>8.

The lag"age "se, :' ,e+e,a$6a%%ella$ i $he a:)*e > )!$"e le, $his %e$i$i) +)! !e*ie9 ) Certiorari. I$ alleges $ha$ $he$!ial ()"!$ a, $he C)"!$ )+ A%%eals e!!e, i h)l,ig i$ lia:le ",e! $he is"!a(e%)li(' :e(a"se $he l)ss +alls 9i$hi $he gee!al e/(e%$i)s (la"se ()si,e!ig $ha$

,!i*e! Magal)g a, se("!i$' g"a!, A$iga 9e!e P!),"(e!s a"$h)!ie, !e%!ese$a$i*es)! e&%l)'ees i $he $!as+e! )+ $he &)e' a, %a'!)ll +!)& i$s :!a(h )(e i Pasa'Ci$' $) i$s hea, )(e i Ma-a$i.A(()!,ig $) )!$"e 9he P!),"(e!s ()&&issi)e, a g"a!, a, a ,!i*e! $) $!as+e!i$s +",s +!)& )e :!a(h $) a)$he! $he' e=e($i*el' a, e(essa!il' :e(a&e i$sa"$h)!ie, !e%!ese$a$i*es i $he (a!e a, ("s$),' )+ $he &)e'. Ass"&ig $ha$ $he'()"l, )$ :e ()si,e!e, a"$h)!ie, !e%!ese$a$i*es $he' 9e!e e*e!$helesse&%l)'ees )+ P!),"(e!s. I$ asse!$s $ha$ $he e/is$e(e )+ a e&%l)'e!6e&%l)'ee!ela$i)shi% #is ,e$e!&ie, :' la9 a, :eig s"(h i$ (a)$ :e $he s":e($ )+ag!ee&e$.# Th"s i+ $he!e 9as i !eali$' a e&%l)'e!6e&%l)'ee !ela$i)shi% :e$9eeP!),"(e!s ) $he )e ha, a, Magal)g a, A$iga ) $he )$he! $he %!)*isi)s i$he ()$!a($s )+ P!),"(e!s 9i$h PRC Maage&e$ S's$e& +)! Magal)g a, 9i$hUi()! Se("!i$' Se!*i(es +)! A$iga 9hi(h s$a$e $ha$ P!),"(e!s is )$ $hei! e&%l)'e!

a, $ha$ i$ is a:s)l*e, +!)& a' lia:ili$' as a e&%l)'e! 9)"l, )$ ):li$e!a$e $he!ela$i)shi%.

)!$"e %)i$s )"$ $ha$ a e&%l)'e!6e&%l)'ee !ela$i)shi% ,e%e,s "%) +)"!s$a,a!,s? 018 $he &ae! )+ sele($i) a, egage&e$ )+ $he %"$a$i*e e&%l)'ee; 078$he &),e )+ %a'&e$ )+ 9ages; 08 $he %!ese(e )! a:se(e )+ a %)9e! $) ,is&iss;a, 08 $he %!ese(e a, a:se(e )+ a %)9e! $) ()$!)l $he %"$a$i*e e&%l)'ees(),"($. O+ $he +)"! $he !igh$6)+6()$!)l $es$ has :ee hel, $) :e $he ,e(isi*e +a($)!. I$ asse!$s $ha$ $he %)9e! )+ ()$!)l )*e! Magal)g a, A$iga 9as *es$e, i a,e/e!(ise, :' P!),"(e!s. )!$"e +"!$he! isis$s $ha$ PRC Maage&e$ S's$e& a,Ui()! Se("!i$' Se!*i(es a!e :"$ #la:)!6)l'# ()$!a($)!s ",e! A!$i(le 1@ )+ $heLa:)! C),e 9hi(h %!)*i,es?

A!$. 1@. C)$!a($)! )! s":()$!a($)!. The!e is #la:)!6)l'# ()$!a($ig 9he!e $he%e!s) s"%%l'ig 9)!-e!s $) a e&%l)'e! ,)es )$ ha*e s":s$a$ial (a%i$al )!i*es$&e$ i $he +)!& )+ $))ls e


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+)ll)9ig $he !"lig i I$e!a$i)al Ti&:e! C)!%. *s. NLRC 4 $ha$ a ,ig $ha$ a()$!a($)! is a #la:)!6)l'# ()$!a($)! is e


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()$!)l a, ()&%esa$i). 1

A ()$!a($ )+ is"!a(e is a ()$!a($ )+ a,hesi) $h"s a' a&:ig"i$' $he!ei sh)"l,:e !es)l*e, agais$ $he is"!e! 12 )! i$ sh)"l, :e ()s$!"e, li:e!all' i +a*)! )+ $heis"!e, a, s$!i($l' agais$ $he is"!e!. 1 Li&i$a$i)s )+ lia:ili$' sh)"l, :e !ega!,e,9i$h e/$!e&e eal)"s' a, &"s$ :e ()s$!"e, i s"(h a 9a' as $) %!e(l",e $heis"!e! +!)& )6()&%lia(e 9i$h i$s ):liga$i). 14 I$ g)es 9i$h)"$ sa'ig $he $ha$ i+$he $e!&s )+ $he ()$!a($ a!e (lea! a, "a&:ig")"s $he!e is ) !))& ()s$!"($i)a, s"(h $e!&s (a)$ :e ela!ge, )! ,i&iishe, :' ",i(ial ()s$!"($i). 15

A is"!a(e ()$!a($ is a ()$!a($ )+ i,e&i$' "%) $he $e!&s a, (),i$i)ss%e(ie, $he!ei. 1> I$ is se$$le, $ha$ $he $e!&s )+ $he %)li(' ()s$i$"$e $he &eas"!e)+ $he is"!e!s lia:ili$'. 7@ I $he a:se(e )+ s$a$"$)!' %!)hi:i$i) $) $he ()$!a!'is"!a(e ()&%aies ha*e $he sa&e !igh$s as i,i*i,"als $) li&i$ $hei! lia:ili$' a, $)i&%)se 9ha$e*e! (),i$i)s $he' ,ee& :es$ "%) $hei! ):liga$i)s )$ i()sis$e$9i$h %":li( %)li('.

Wi$h $he +)!eg)ig %!i(i%les i &i, i$ &a' )9 :e as-e, 9he$he! Magal)g a,A$iga


51/85

Se!*i(es $he ()&%lai$ +)! *i)la$i) )+ P.D. N). 27 a, $he i+)!&a$i) $he!e+)! le,:' $he Ci$' is(al )+ Pasa' Ci$' $he!e is a %a"(i$' )+ e*i,e(e as $) 9he$he! $he()$!a($s :e$9ee P!),"(e!s a, $he PRC Maage&e$ S's$e&s a, Ui()!Se("!i$' Se!*i(es a!e #la:)!6)l'# ()$!a($s.

B"$ e*e g!a$ig +)! $he sa-e )+ a!g"&e$ $ha$ $hese ()$!a($s 9e!e )$ #la:)!6)l'#()$!a($s a, PRC Maage&e$ S's$e&s a, Ui()! Se("!i$' Se!*i(es 9e!e $!"l'i,e%e,e$ ()$!a($)!s 9e a!e sa$ise, $ha$ Magal)g a, A$iga 9e!e i !es%e($ )+$he $!as+e! )+ P!),"(e!s &)e' +!)& i$s Pasa' Ci$' :!a(h $) i$s hea, )(e i

Ma-a$i i$s #a"$h)!ie, !e%!ese$a$i*es# 9h) se!*e, as s"(h 9i$h i$s $elle! Ma!i:e$hAla&%a'. H)9s)e*e! *ie9e, P!),"(e!s e$!"s$e, $he $h!ee 9i$h $he s%e(i( ,"$' $)sa+el' $!as+e! $he &)e' $) i$s hea, )(e 9i$h Ala&%a' $) :e !es%)si:le +)! i$s("s$),' i $!asi$; Magal)g $) ,!i*e $he a!&)!e, *ehi(le 9hi(h 9)"l, (a!!' $he&)e'; a, A$iga $) %!)*i,e $he ee,e, se("!i$' +)! $he &)e' $he *ehi(le a, his$9) )$he! ()&%ai)s. I sh)!$ +)! $hese %a!$i("la! $as-s $he $h!ee a($e, as age$s)+ P!),"(e!s. A #!e%!ese$a$i*e# is ,ee, as )e 9h) !e%!ese$s )! s$a,s i $he%la(e )+ a)$he!; )e 9h) !e%!ese$s )$he!s )! a)$he! i a s%e(ial (a%a(i$' as aage$ a, is i$e!(hagea:le 9i$h #age$.# 7

I *ie9 )+ $he +)!eg)ig )!$"e is e/e&%$ +!)& lia:ili$' ",e! $he gee!al e/(e%$i)s(la"se )+ $he is"!a(e %)li('.

WHEREORE $he is$a$ %e$i$i) is he!e:' GRANTED. The ,e(isi) )+ $he C)"!$ )+A%%eals i CA6G.R. CF N). 7> ,a$e, Ma' 1>> as 9ell as $ha$ )+ B!a(h 1 )+$he Regi)al T!ial C)"!$ )+ Ma-a$i i Ci*il Case N). 1514 a!e REFERSED a, SETASIDE. The ()&%lai$ i Ci*il Case N). 1514 is DISMISSED.

N) %!))"(e&e$ as $) ()s$s.

SO ORDERED.

12. 3G.R. NO. 1B4>=9 - *#$(#r0 24, 2>>6]

D OOL OF ACCR!DIT!D IN"URANC! CO'ANI!", Petitioner, v.RADIO'INDANAO N!TORH, INC., Respondent.

D E C I S I O N

AUSTRIA6MARTINEJ.?

This !e+e!s $) $he %e$i$i) +)! certiorari",e! R"le 2 )+ $he R"les )+ C)"!$ see-ig$he !e*ie9 )+ $he De(isi)1,a$e, N)*e&:e! 1 7@@@ )+ $he C)"!$ )+ A%%eals 0CA8 iCA6G.R. CF N). 221 $he ,is%)si$i*e %)!$i) )+ 9hi(h !ea,s?

Whe!e+)!e %!e&ises ()si,e!e, $he a%%eale, De(isi) )+ $he

insurance cases batch 1

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