Case Digest (G.R. No. 114427)
Facts:
Armando Geagonia v. Court of Appeals and Country Bankers Insurance Corporation, G.R. No. 114427, February 06, 1995, First Division, Davide, Jr., J., writing for the Court.The petitioner, Armando Geagonia, was the owner of Norman’s Mart in San Francisco, Agusan del Sur and on December 22, 1989 obtained from respondent Country Bankers Insurance Corporation fire policy No. F‑14622 for P100,000 covering stock‑in‑trade. The policy contained a CO‑INSURANCE declaration naming Mercantile Insurance Co., Inc. as co‑insurer for P50,000 and included Condition 3, requiring the insured to notify the company of any other insurance covering the same stocks in trade and providing that the condition would not apply when total insurance in force at loss did not exceed P200,000.
At the time of the December 1989 policy Geagonia’s inventory totaled P392,130.50, including items on credit from Cebu Tesing Textiles (P250,000). On May 27, 1990 a fire destroyed his stocks. Country Bankers denied Geagonia’s claim on December 28, 1990, asserting that two prior fire policies (Nos. GA‑28146 and GA‑28144) had been issued by the Philippines First Insurance Co., Inc. (“PFIC”), each for P100,000, naming “Discount Mart (Mr. Armando Geagonia, Prop.)” and containing a mortgage/loss‑payable clause in favor of Cebu Tesing Textiles.
Geagonia filed a complaint with the Insurance Commission (I.C. Case No. 3340) claiming P100,000 under policy F‑14622 plus attorney’s fees; among his attachments was a letter dated January 18, 1991 asking reconsideration in which he admitted that the PFIC policies were already in existence when he obtained the Country Bankers policy but asserted he was unaware of the policy requirement to disclose prior insurance and claimed Cebu Tesing Textiles procured and paid for the PFIC policies without informing him. Country Bankers denied the complaint, invoking Condition 3.
On June 21, 1993 the Insurance Commission found for Geagonia, concluding he lacked knowledge of the PFIC policies, that Cebu Tesing Textiles had procured them and had insurable interest as creditor, and ordered Country Bankers to pay P100,000 with interest and P10,000 as attorney’s fees. Country Bankers’ motion for reconsideration was denied, and it appealed to the Court of Appeals via petition for review (docketed CA‑G.R. SP No. 31916).
On December 29, 1993 the Court of Appeals reversed the Insurance Commission, finding Geagonia knew of the PFIC policies and pointing to the January 18, 1991 letter (...(Pro-only)
Issues:
- Did the Court of Appeals commit grave abuse of discretion in reversing the Insurance Commission’s factual findings?
- Was the January 18, 1991 letter properly considered against the petitioner despite not being separately introduced in evidence at the hearing?
- Did petitioner’s prior knowledge of the PFIC policies, if established, constitute a breach of Condition 3 of policy No. F‑14622 that would bar recovery?
- If Condition 3 was breached, did the policy language (including the P200,000 exception and the mortgage/loss‑payable cl...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
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Doctrine:
- (Pro-only)