Title
Almendras Mining Corp. vs. Office of the Insurance Commission
Case
G.R. No. 72878
Decision Date
Apr 15, 1988
Vessel "Don Paulo" grounded during Typhoon Nitang; insurer Bankers faced claims for repair delays. Almendras sought revocation of Bankers' license via administrative complaint, dismissed by Insurance Commission. Supreme Court ruled certiorari improper; appeal to Finance Secretary required.
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Case Digest (G.R. No. 144057)

Facts:

Marine Casualty and Initial Actions

  • On September 3, 1984, the marine cargo vessel LCT "Don Paulo," owned by Almendras Mining Corporation ("Almendras"), was forced aground near Sogod, Tablas Island, Romblon, due to strong winds and tidal waves caused by Typhoon "Nitang."
  • Almendras filed a Marine Protest on the same day and notified its insurer, Country Bankers Insurance Corporation ("Bankers"), on September 6, 1984, of its intention to file a provisional claim for damages.

Insurance Claim and Repair Delays

  • Bankers commissioned Audemus Adjustment Corporation, which estimated the insurer's liability at P2,187,983.00 (70% of repair costs). Salvage operations began on September 5, 1984, and the vessel was towed to Bauan, Batangas, for repairs by PNOC Marine Corporation.
  • Repairs were delayed due to the unavailability of spare parts for the vessel's four damaged engines. Almendras filed an administrative complaint (Administrative Case No. 006) on April 18, 1985, seeking:
    1. Revocation or suspension of Bankers' Certificate of Authority.
    2. Immediate completion of repairs and delivery of the vessel.
    3. Damages.

Settlement Attempts

  • During hearings, Bankers agreed to replace the damaged engines with one new and three reconditioned engines, with Almendras covering 30% of the cost. Almendras inspected the proposed new engine (Caterpillar D-3408) on July 16, 1985, and found it suitable. However, Almendras later demanded cash settlement instead, leading to a breakdown in negotiations.

Legal Proceedings

  • Almendras filed a civil action for damages (Civil Case No. 3120-P) on August 13, 1985, with the Regional Trial Court of Pasay City.
  • The Insurance Commission dismissed Almendras' administrative complaint on October 23, 1985, finding no unreasonable delay or unfair practices by Bankers. Almendras' Motion for Reconsideration was denied on November 11, 1985.

Petition for Certiorari

  • Almendras filed a Petition for Certiorari with the Supreme Court on November 28, 1985, challenging the Insurance Commission's decision and seeking revocation or suspension of Bankers' Certificate of Authority.

Issue:

  1. Whether there were valid grounds to revoke or suspend Bankers' Certificate of Authority.
  2. Whether the Petition for Certiorari was the proper remedy, or if an appeal to the Secretary of Finance should have been pursued.

Ruling:

The Supreme Court dismissed the Petition for Certiorari, holding that:

  1. The Insurance Commission's decision was issued in the exercise of its regulatory, not adjudicatory, authority. Therefore, the proper remedy was an appeal to the Secretary of Finance, not a Petition for Certiorari.
  2. Almendras had already pursued its substantive insurance claim in a separate civil action, limiting the Insurance Commission's role to regulatory matters.

Ratio:

  1. Jurisdiction of the Insurance Commission: The Insurance Commissioner has both regulatory and adjudicatory powers. In this case, the Commissioner acted in a regulatory capacity, determining whether Bankers violated the Insurance Code. Appeals from such decisions should be made to the Secretary of Finance, not the courts.
  2. Proper Remedy: A Petition for Certiorari is not a substitute for an appeal. Since Almendras failed to exhaust the proper administrative remedy (appeal to the Secretary of Finance), the Supreme Court lacked jurisdiction to entertain the petition.
  3. Substantive Claims: Almendras' substantive claims for damages were properly addressed in a separate civil action, as they exceeded the quasi-judicial jurisdiction of the Insurance Commission under Section 416 of the Insurance Code.


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