Case Digest (G.R. No. 110668)
Facts:
Smith, Bell & Co., Inc. v. Court of Appeals and Joseph Bengzon Chua, G.R. No. 110668, February 06, 1997, Supreme Court Third Division, Panganiban, J., writing for the Court.The plaintiff was Joseph Bengzon Chua, doing business as Tic Hin Chiong Importer, who imported 50 metric tons of dicalcium phosphate from Chin Gact Co., Ltd. of Taipei in July 1982. The shipment was insured on July 27, 1982 by The First Insurance Co. Ltd. under a marine "all risks" policy (Marine Policy No. 1000M82070033219) showing a stamp identifying Smith, Bell & Co., Inc. as "Claim Agent." The cargo arrived in Manila in September 1982; a survey revealed 600 damaged bags and a shortage of 18,546.0 kg. On October 16, 1982 Chua submitted a formal proof of loss and claim for US$7,357.78 to Smith, Bell & Co., Inc., which reportedly conveyed the claim to its principal. The insurer later offered 50% redress by letter dated February 15, 1983, which Chua rejected, and he thereafter filed suit.
Chua sued in the Regional Trial Court of Manila, Branch 22 (Civil Case No. 83-17118), impleading both The First Insurance Co. Ltd. and Smith, Bell & Co., Inc. The First Insurance Co. Ltd. failed to answer and was declared in default; Smith, Bell & Co., Inc. answered, asserting it was merely a settling/claim agent and not personally liable. The trial court rendered judgment in favor of Chua, holding both defendants jointly and severally liable for US$7,359.78 plus interest, attorney’s fees and costs.
The Court of Appeals (Tenth Division, Ordoñez‑Benitez, ponente) affirmed the trial court in CA‑G.R. CV No. 31812 by decision promulgated January 20, 1993, relying in part on a 1987 CA decision (Choa Tiek Seng v. The First Insurance Co., Ltd. and/or Smith, Bell & Co., Inc.) that had held Smith, Bell liable as resident/settling agent. Smith, Bell filed a petition for review on certiorari to the Supreme Court under Rule 45, challenging personal and/or solidary liability on the ground that it was only an agent, had n...(Subscriber-Only)
Issues:
- Whether a local settling or claim agent of a disclosed foreign insurance principal can be held personally and/or solidarily liable with the principal under the principal’s marine cargo insurance policy when the agent was not a party to the ins...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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