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  • MENCHIE V. DUMAGAN: RELEASE OF CLAIM BY INSURED DEPRIVES INSURER OF SUBROGATION RIGHTS

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    Jeshuah Genttel
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    This case involves a dispute over an insurance payment between Manila Mahogany Manufacturing Corporation (petitioner), who insured their vehicle with Zenith Insurance Corporation (private respondent). The vehicle was damaged in an accident caused by a truck owned by San Miguel Corporation. Private respondent paid petitioner PHP 5,000 but then demanded reimbursement, arguing that San Miguel had already paid petitioner directly. The Supreme Court held that under Article 220 of the Civil Code, the insurer is subrogated to the rights of the insured against the wrongdoer to the extent of the payment made. However, when petitioner released San Miguel from any liability, petitioner's right to retain the PHP 5,000 payment no longer existed, thereby entitling private

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    46733980 Manila Mahogany Manufacturing Corp vs CA

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    This case involves a dispute over an insurance payment between Manila Mahogany Manufacturing Corporation (petitioner), who insured their vehicle with Zenith Insurance Corporation (private respondent). The vehicle was damaged in an accident caused by a truck owned by San Miguel Corporation. Private respondent paid petitioner PHP 5,000 but then demanded reimbursement, arguing that San Miguel had already paid petitioner directly. The Supreme Court held that under Article 220 of the Civil Code, the insurer is subrogated to the rights of the insured against the wrongdoer to the extent of the payment made. However, when petitioner released San Miguel from any liability, petitioner's right to retain the PHP 5,000 payment no longer existed, thereby entitling private

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    © All Rights Reserved
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    63 views1 page

    MENCHIE V. DUMAGAN: RELEASE OF CLAIM BY INSURED DEPRIVES INSURER OF SUBROGATION RIGHTS

    Uploaded by

    Jeshuah Genttel
    This case involves a dispute over an insurance payment between Manila Mahogany Manufacturing Corporation (petitioner), who insured their vehicle with Zenith Insurance Corporation (private respondent). The vehicle was damaged in an accident caused by a truck owned by San Miguel Corporation. Private respondent paid petitioner PHP 5,000 but then demanded reimbursement, arguing that San Miguel had already paid petitioner directly. The Supreme Court held that under Article 220 of the Civil Code, the insurer is subrogated to the rights of the insured against the wrongdoer to the extent of the payment made. However, when petitioner released San Miguel from any liability, petitioner's right to retain the PHP 5,000 payment no longer existed, thereby entitling private

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    MENCHIE V.

    DUMAGAN November 25, 2010


    3SR-INSURANCE
    MANILA MAHOGANY MANUFACTURING CORPORATION vs. COURT OF APPEALS AND
    ZENITH INSURANCE CORPORATION (G.R. No. L-52756 (Oco!"# $2% $&'7(
    FACTS)
    Petitioer M!i"! M!#o$!% M!&'!(t&ri$ Cor)or!tio i*&re+ it* Mer(e+e* ,e- .-+oor *e+! /it#
    re*)o+et 0eit# I*&r!(e Cor)or!tio. 1#e i*&re+ ve#i("e /!* b&m)e+ !+ +!m!$e+ b% ! tr&(2 o/e+ b%
    S! Mi$&e" Cor)or!tio. 3or t#e +!m!$e (!&*e+, re*)o+et (om)!% )!i+ )etitioer 'ive t#o&*!+ )e*o*
    4P5,000.005 i !mi(!b"e *ett"emet. Petitioer6* $eer!" m!!$er e7e(&te+ ! Re"e!*e o' C"!im, *&bro$!ti$
    re*)o+et (om)!% to !"" it* ri$#t to !(tio !$!i*t S! Mi$&e" Cor)or!tio.
    1#ere!'ter, re*)o+et (om)!% /rote I*&r!(e A+8&*ter*, I(. to +em!+ reimb&r*emet 'rom S!
    Mi$&e" Cor)or!tio o' t#e !mo&t it #!+ )!i+ )etitioer. I*&r!(e A+8&*ter*, I(. re'&*e+ reimb&r*emet,
    !""e$i$ t#!t S! Mi$&e" Cor)or!tio #!+ !"re!+% )!i+ )etitioer P.,500.00 'or t#e +!m!$e* to )etitioer6*
    motor ve#i("e, !* evi+e(e+ b% ! (!*# vo&(#er !+ ! Re"e!*e o' C"!im e7e(&te+ b% t#e Geer!" M!!$er o'
    )etitioer +i*(#!r$i$ S! Mi$&e" Cor)or!tio 'rom 9!"" !(tio*, ("!im*, +em!+* t#e ri$#t* o' !(tio t#!t o/
    e7i*t or #ere!'ter +eve"o) !ri*i$ o&t o' or !* ! (o*e:&e(e o' t#e !((i+et.9
    Re*)o+et i*&r!(e (om)!% t#&* +em!+e+ 'rom )etitioer reimb&r*emet o' t#e *&m o'
    P.,500.00 )!i+ b% S! Mi$&e" Cor)or!tio. Petitioer re'&*e+; #e(e, t#e i*t!t (!*e.
    ISSUE) <#et#er or ot t#e re*)o+et i*&r!(e (om)!% i* *&bro$!te+ to t#e ri$#t* o' t#e )etitioer !$!i*t
    S! Mi$&e" Cor)or!tio.
    HELD) =ES
    RULING)
    1#e S&)reme Co&rt #e"+ t#!t i' ! )ro)ert% i* i*&re+ !+ t#e o/er re(eive* t#e i+emit% 'rom t#e
    i*&rer, it i* )rovi+e+ i >Arti("e 220? o' t#e Ne/ Civi" Co+e@ t#!t t#e i*&rer i* deemed subrogated to t#e
    ri$#t* o' t#e i*&re+ !$!i*t t#e /ro$+oer !+ i' t#e !mo&t )!i+ b% t#e i*&rer +oe* ot '&""% (over t#e "o**,
    t#e t#e !$$rieve+ )!rt% i* t#e oe etit"e+ to re(over t#e +e'i(ie(%. U+er t#i* "e$!" )rovi*io, the real party
    in interest with regard to the portion of the indemnity paid is the insurer and not the insured.
    He(e, )etitioer i* etit"e+ to 2ee) t#e *&m o' P.,500.00 )!i+ b% S! Mi$&e" Cor)or!tio &+er it*
    ("e!r ri$#t to 'i"e ! +e'i(ie(% ("!im 'or +!m!$e* i(&rre+, !$!i*t t#e /ro$+oer, *#o&"+ t#e i*&r!(e
    (om)!% ot '&""% )!% 'or t#e i8&r% (!&*e+ 4Arti("e 220?, Ne/ Civi" Co+e5. However, when petitioner
    released San Miguel Corporation from any liability, petitioner's right to retain the sum of P5,000.00 no longer
    eisted, thereby entitling private respondent to re!over the same.
    1#e ri$#t o' *&bro$!tio (! o"% e7i*t !'ter t#e i*&rer #!* )!i+ t#e i*&re+ ot#er/i*e t#e i*&re+ /i""
    be +e)rive+ o' #i* ri$#t to '&"" i+emit%. I' t#e i*&r!(e )ro(ee+* !re ot *&''i(iet to (over t#e +!m!$e*
    *&''ere+ b% t#e i*&re+, t#e #e m!% *&e t#e )!rt% re*)o*ib"e 'or t#e +!m!$e 'or t#e rem!i+er. 1o t#e e7tet
    o' t#e !mo&t #e #!* !"re!+% re(eive+ 'rom, t#e i*&rer e8o%* t#e ri$#t o' *&bro$!tio.
    Si(e t#e i*&rer (! be *&bro$!te+ to o"% *&(# ri$#t* !* t#e i*&re+ m!% #!ve, should the insured,
    after re!eiving payment from the insurer, release the wrongdoer who !aused the loss, the insurer loses his
    rights against the latter. "ut in su!h a !ase, the insurer will be entitled to re!over from the insured whatever it
    has paid to the latter, unless the release was made with the !onsent of the insurer.

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