Case Digest (G.R. No. 206892) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
On August 5, 1997, Sunkyong America, Inc. shipped 23,842 bags of Peruvian fishmeal from Chimbote, Peru to its consignee, Great Harvest, in Manila. The cargo, valued at US$753,117.75, was insured against all risks with LG Insurance Company, Ltd. (United States Branch) through its American manager, WM H. McGee & Co., Inc. Upon arrival on September 16, 1997, the shipment was discharged into four barges owned by C.V. Gaspar Salvage & Lighterage Corporation for delivery to Great Harvest’s warehouse in Valenzuela, Bulacan. While moored in the Pasig River, barge AYNA-1 developed a hole in its bottom plating, allowing water to enter and damage 3,662 bags of fishmeal—2,085 of which were discarded, 877 accepted with a 65% loss allowance, and 700 turned over to salvors. Great Harvest first sought indemnity from its customs broker, Fortune Brokerage and Freight Services, Inc., and C.V. Gaspar, but when both refused, Great Harvest filed a claim under its insurance policy. After LG Insur Case Digest (G.R. No. 206892) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Shipment and Insurance
- On August 5, 1997, Sunkyong America, Inc. shipped 23,842 bags (1,207.50 MT) of Peruvian fishmeal from Chimbote, Peru to Great Harvest in Manila.
- The cargo was insured “all risks” for US$753,117.75 with LG Insurance Company, Ltd. (U.S. Branch) through its American manager WM H. McGee & Co., Inc.
- Transport and Damage
- Upon arrival on September 16, 1997, the shipment was discharged into four barges owned by C.V. Gaspar Salvage & Lighterage Corporation, including barge “AYNA-1.”
- While moored on the Pasig River, AYNA-1 developed a hole in its bottom plating; water ingress damaged 3,662 bags—2,085 dumped, 877 accepted with a 65% loss allowance, and 700 disposed to salvors.
- Claims, Payment, and Subrogation
- Great Harvest filed claims against Fortune Brokerage and C.V. Gaspar, which were ignored; it then claimed under its insurance policy, prompting LG Insurance’s payment.
- Great Harvest executed a subrogation receipt in favor of LG Insurance; LG Insurance and WM H. McGee sued Fortune Brokerage, C.V. Gaspar, and customs broker Venancio Mesina for reimbursement (Civil Case No. 99-1864, RTC Makati, Branch 132).
Issues:
- Whether Fajardo Law Office and Atty. Beda Fajardo were authorized to file the complaint and sign the verification and certification against forum shopping on behalf of LG Insurance and WM H. McGee.
- Whether there was a valid subrogation of rights from Great Harvest to LG Insurance and WM H. McGee.
- Whether barge AYNA-1 qualifies as a common carrier under Article 1732 of the Civil Code.
- Whether C.V. Gaspar and Fortune Brokerage are jointly and solidarily liable for the amount paid by LG Insurance to Great Harvest.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)