Case Summary (G.R. No. 192113)
Background of the Case
Diosdado C. Ty was employed as a mechanic-operator at Broadway Cotton Factory in Caloocan City, earning a monthly salary of P185. In 1953, he procured Personal Accident Policies from several insurance companies for a duration of twelve months. On December 24, 1953, while attempting to extinguish a fire at the factory, Ty sustained serious injuries to his left hand when a heavy object fell on it. He was treated for various fractures and a laceration at the National Orthopedic Hospital from December 26, 1953, to February 8, 1954.
Nature of Claims and Responses
Following Ty's treatment, he sought compensation from the insurance companies under the policies he held. However, the companies denied his claims citing the policies' conditions that considered compensation for partial disability only in cases involving the complete amputation of a hand. Consequently, Ty filed several actions in the Municipal Courts of Manila, which initially ruled in his favor. Upon appeal by the insurance companies to the Court of First Instance, the court dismissed the cases based on the same interpretation of the insurance policies.
Legal Provisions at Issue
The insurance policies in question uniformly stated that compensation for partial disability due to the loss of either hand would only be granted if there was an amputation through the bones of the wrist. Ty contended that he should receive compensation for the substantial inability to use his hand, regardless of whether a formal amputation occurred. He argued that the term "loss" in the policy should encompass any substantial disability.
Court's Reasoning and Conclusion
The Court of First Instance affirmed the dismissal of Ty’s claims, emphasizing that the language of the insurance policies was explicit and clear. It underscored the legal principle that the contract's terms are binding and defined; in this instance, partial disability that does not result in amputation does not qualify for compensation. The court referenced prior rulings that had consistently uphel
...continue readingCase Syllabus (G.R. No. 192113)
Case Overview
- This case involves appeals instituted by Diosdado C. Ty against several insurance companies including Filipinas Compania de Seguros, People's Surety & Insurance Co., Inc., South Sea Surety & Insurance Co., Inc., The Philippine Guaranty Company, Inc., Universal Insurance & Indemnity Co., and Plaridel Surety & Insurance Co., Inc.
- The appeals were from the decision of the Court of First Instance of Manila, which dismissed Ty's complaints for compensation due to disability resulting from an accident.
Background Facts
- Diosdado C. Ty was employed as a mechanic-operator at Broadway Cotton Factory in Caloocan City, earning a monthly salary of P185.00.
- In late 1953, Ty purchased Personal Accident Policies from multiple insurance companies, including the defendants, with a validity of 12 months.
- On December 24, 1953, a fire broke out at the factory. While attempting to extinguish the fire, a heavy object fell on Ty's left hand, causing multiple severe injuries.
Nature of Injuries
- Ty sustained the following injuries, as confirmed by the attending surgeon:
- Fracture of the proximal phalanx of the left index finger (simple)
- Compound fracture of the proximal phalanx of the left middle finger and compound fracture of the 2nd phalanx
- Compound fracture of the proximal phalanx of the left fourth finger
- Simple fracture of the mi