Case Digest (G.R. No. 230711)
Facts:
On 2 July 2009, Paramount Life & General Insurance Corporation filed a complaint in the Regional Trial Court, Makati City, Branch 61, seeking nullification of Individual Insurance Certificate No. 041913 issued under Group Master Policy No. G-086 after the death of Virgilio J. Castro on 26 February 2009; Cherry T. Castro and Glenn Anthony T. Castro answered and sought to implead the Philippine Postal Savings Bank, Incorporated (PPSBI). Paramount denied the death claim for alleged material misrepresentation and rescinded the individual certificate; the RTC denied joinder and treated the defendants as in default, the Court of Appeals remanded to admit a third-party complaint against PPSBI, and both parties brought separate Rule 45 petitions to the Supreme Court.Issues:
- Did the Court of Appeals err in remanding the case to the RTC for admission of the third-party complaint against PPSBI?
- Did the RTC err in denying the Castros' Motion to Dismiss for failure to prosecute and in e
Case Digest (G.R. No. 230711)
Facts:
- Parties and nature of action
- Paramount Life & General Insurance Corporation (Paramount) instituted a Complaint for Declaration of Nullity of Individual Insurance Contract in the Regional Trial Court (RTC), Makati City, Branch 61, filed 2 July 2009.
- Cherry T. Castro and Glenn Anthony T. Castro (the Castros) were defendants and later counterclaimants in Civil Case No. 09-599.
- Philippine Postal Savings Bank, Incorporated (PPSBI) was the group policyholder and later sought inclusion as third-party defendant.
- Insurance instruments, beneficiaries, and loss
- PPSBI obtained Group Master Policy No. G-086 from Paramount effective 1 September 2004; Article IV, Section 20 provided that "all death benefits shall be payable to the Creditor, Philippine Postal Savings Bank as its interest may appear."
- Virgilio J. Castro obtained a housing loan of P1.5 million from PPSBI, and PPSBI required a mortgage redemption insurance (MRI).
- Virgilio applied for MRI and named Cherry and Glenn as beneficiaries; Paramount issued Individual Certificate No. 041913 effective 12 March 2008 subject to Group Master Policy No. G-086.
- Virgilio died on 26 February 2009 and a death benefit claim under Certificate No. 041913 followed.
- Paramount's denial and grounds for rescission
- Paramount denied the claim and declared Certificate No. 041913 rescinded, null and void ab initio on the ground of material concealment or misrepresentation in Virgilio's application.
- Paramount alleged that Virgilio answered "no" to questions about adverse health history and prior medical consultation, but later learned Virgilio sought consultation in 2005 for lumbosacral pain.
- Pleadings, counterclaims, and reliefs sought
- Paramount prayed for declaration that Application and Insurance Certificate No. 041913 be null and void and for attorney's fees and exemplary damages.
- The Castros answered, denied material misrepresentation, argued insurability evidence satisfied Paramount, asserted estoppel based on approval, and counterclaimed for actual and exemplary damages and attorney's fees for alleged breach of contract.
- Motions to implead PPSBI and early RTC rulings
- On 29 October 2009, the Castros moved to include PPSBI as indispensable party; the RTC denied the motion on the ground the complaint could be resolved without PPSBI.
- The Castros filed a Motion for Leave to File Third-Party Complaint against PPSBI; the RTC denied it and denied a motion for reconsideration on 19 April 2010.
- Court of Appeals proceedings and remand
- The Castros petitioned the Court of Appeals (CA); in Decision dated 4 October 2010 the CA partially granted the petition and allowed filing of a third-party complaint against PPSBI, reasoning PPSBI would collect the loan pursuant to the MRI and thus had an interest....(Subscriber-Only)
Issues:
- Issue presented in G.R. No. 195728
- Whether the Court of Appeals erred in remanding the case to the RTC for the admission of the Castros' Third-Party Complaint against PPSBI.
- Issue presented in G.R. No. 211329
- Whether the RTC erred in denying the Castros' Motion t...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)