Case Digest (G.R. No. L-36413)
Facts:
Malayan Insurance Co. Inc. v. The Hon. Court of Appeals (Third Division), Martin C. Vallejos, Sio Choy, San Leon Rice Mill, Inc. and Pangasinan Transportation Co., Inc., G.R. No. L-36413. September 26, 1988, Second Division, Padilla, J., writing for the Court.On 29 March 1967 petitioner Malayan Insurance Co., Inc. issued a private car comprehensive policy (No. MRO/PV-15753) in favor of Sio Choy, effective 18 April 1967–18 April 1968, covering a Willys jeep for "own damage" up to P600 and "third-party liability" up to P20,000. On 19 December 1967 the insured jeep, driven by Juan P. Compollo (an employee of San Leon Rice Mill, Inc.), collided with a bus of Pangasinan Transportation Co., Inc. (PANTRANCO), causing damage to the jeep and injuries to passenger Martin C. Vallejos and the driver.
Vallejos sued Sio Choy, Malayan Insurance and PANTRANCO in the Court of First Instance of Pangasinan (Civil Case No. U-2021) for various damages totaling P77,000 plus attorney’s fees. PANTRANCO denied liability and invoked due diligence; Sio Choy and Malayan denied liability and blamed PANTRANCO. Sio Choy later alleged he had paid Vallejos P5,000 and filed a cross-claim against Malayan for indemnity under the policy. Malayan was allowed to file a third‑party complaint against San Leon Rice Mill, Inc., alleging that Compollo was its employee acting within the scope of his employment and thus the mill was vicariously liable.
The trial court rendered judgment for Vallejos in the total amount of P29,103, holding Sio Choy, Malayan Insurance and San Leon Rice Mill jointly and severally liable, but qualifying Malayan’s exposure at P20,000 (the policy limit); PANTRANCO’s counterclaims were dismissed. The Court of Appeals (Third Division) affirmed the trial court’s award insofar as it held Sio Choy, San Leon Rice Mill and Malayan jointly and severally liable to Vallejos, but held that San Leon Rice Mill had no obligation to reimburse Malayan because it was not privy to the insurance contract.
Petitioner Malayan sought review in the Supreme Court by certiorari; the Court g...(Subscriber-Only)
Issues:
- Was the trial court, as affirmed by the Court of Appeals, correct in holding Malayan Insurance Co., Inc., Sio Choy and San Leon Rice Mill, Inc. solidarily (jointly and severally) liable to Martin C. Vallejos?
- If Malayan pays under its insurance policy, is it entitled to be reimbursed by San Leon Rice Mill, Inc. for the shar...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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