Title
De Leon vs. Manufacturers Life Insurance Co. , Inc.
Case
G.R. No. 243733
Decision Date
Jan 12, 2021
Dispute over life insurance proceeds; petitioners claim valid beneficiary change via July 31, 2002 forms; Supreme Court rules in their favor, deeming internal rules non-binding and photocopies admissible.
A

Case Digest (G.R. No. 243733)

Facts:

  • Parties and Insurance Policies
    • Edgar H. Sarte (deceased insured) sired three families:
      • With Zenaida S. Sarte (legitimate wife): Jessica S. Sarte-Gustilo and Edgard Eldon S. Sarte.
      • With Vilma C. Caparros: Edgar Alvin C. Sarte and Edgar Angelo C. Sarte.
      • With Edita A. De Leon: Lara Bianca L. Sarte and Renzo Edgar L. Sarte.
    • Three life insurance policies (all revocable beneficiaries) issued by Manufacturers Life Insurance Company (Phils.), Inc. (Manulife):
Policy No. 4321987-2 (Aug. 25, 1994; P1,000,000) – Beneficiaries: STI & Zenaida Sarte Policy No. 4319830-8 (Aug. 1, 1991; P1,000,000) – Beneficiaries: STI & Zenaida Sarte Policy No. 4319831-6 (Sept. 3, 1991; P2,000,000) – Beneficiary: Edgar Alvin C. Sarte
  • Beneficiary Designation Forms (BDFs) and Dispute
    • March 1, 2002 BDFs (processed and registered by Manulife):
      • Policy 1: Zenaida Sarte & Jessica Sarte-Gustilo
      • Policy 2: Zenaida Sarte & Renzo Edgar L. Sarte
      • Policy 3: Edgar Alvin C. Sarte & Renzo Edgar L. Sarte
    • July 31, 2002 BDFs (prepared by Sarte’s secretary Gealogo, signed by Sarte; originals delivered to servicing agent Betty Cepeda):
      • Policy 1 changed to: Renzo Edgar L. Sarte
      • Policy 2 changed to: Renzo Edgar L. Sarte
      • Policy 3 changed to: Lara Bianca L. Sarte
– No trustees were designated for minor beneficiaries; “Nothing Follows” typed beneath names. – Cepeda refused to register forms for lack of trustee designation and allegedly returned them; originals later unaccounted.
  • Death of Edgar Sarte on December 23, 2003. Manulife did not pay proceeds pending resolution of conflicting claims.
  • August 12, 2004: Manulife filed complaint for interpleader before RTC Makati to determine rightful beneficiaries among:
    • Zenaida & Jessica;
    • Vilma & minor Alvin;
    • Edita & minors Lara and Renzo.
  • Counterclaims and third-party complaints:
    • Zenaida/Jessica and Alvin alleged bad faith and sought damages against Manulife.
    • Lara/Renzo filed counterclaim against Manulife and third-party complaint against Cepeda for failing to register BDFs.
    • Cepeda counter-claimed against Lara/Renzo for damages defending frivolous suit.

Issues:

  • Did the insurance policies or governing law require Sarte to designate a trustee when naming minor beneficiaries?
  • Did the Court of Appeals correctly apply the Best Evidence Rule in excluding photocopies of the July 31, 2002 BDFs?
  • Did Sarte effect a valid change of beneficiary by submitting the July 31, 2002 BDFs as a “written notice in form satisfactory to the Company”?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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