Case Digest (G.R. No. 84507)
Facts:
Choa Tiek Seng, doing business under the name and style of Seng's Commercial Enterprises, imported on November 4, 1976 fifteen metric tons of lactose in 600 bags from Holland, insured by Filipino Merchants Insurance Company, Inc. for P98,882.35. Upon arrival at Manila the cargo was turned over to arrastre operator E. Razon, Inc. and delivered to petitioner; 403 bags were later found in bad order with spillage valued at P33,117.63, prompting petitioner to file a claim February 16, 1977 and suit August 2, 1977 in the Regional Trial Court of Manila, which dismissed the complaint on March 31, 1986; the Court of Appeals affirmed on February 18, 1988 and denied reconsideration August 1, 1988.
Issues:
- Did the shipment sustain loss or damage at the time of devanning as shown by the survey reports and admissions?
- Does an "all risks" marine insurance policy cover the loss here, or must the insured prove a fortuitous maritime peril to recover?
- Is the insurer bound by the findings of its protective surveyor and thus precluded from denying loss?
Ruling:
The Court reversed the Court of Appeals and rendered judgment for petitioner. The Court ordered Filipino Merchants Insurance Company, Inc. to pay P33,117.63 with legal interest from filing of the complaint, attorney's fees of P10,000.00, and costs.
Ratio:
The Court found the survey reports, including that of the insurer's protective surveyor, and the insurer's letter of May 26, 1977 admitting 403 bags were in bad order, suficed to establish loss; the clean tally sheet and intact container seal related to the van, not the condition of the cargo, and did not rebut the surveys. The Court construed the policy clause "This insurance is against all risks…" as covering all loss or damage except those excluded by the policy, placed the burden on the insurer to prove the loss fell within an exclusion, and held no exclusion such as delay or inherent vice was established.
Doctrine:
- An insurer who causes a protective survey is bound by the surveyor's findings it procured.
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