080. Valenzuela vs.

CA
G.R. No.83122, October 19, 1990
Topc! "re#u#
"onente! Guterrez $r., $.
Author: Kelsey Mendoza
Link:
%ttp!&&'''.la'p%l.net&(u)(urs&(ur1990&oct1990&*
r+83122+1990.%t#l
FACTS:
1. Petitioner Valenzuela is a General Agent o !ri"ate res!ondent Phili!!ine A#eri$an General %nsuran$e
Co#!any& %n$. 'Phila#gen( sin$e 1)*+. As su$h& he ,as authorized to soli$it and sell on -ehal o
Phila#gen all kinds o non.lie insuran$e& and in $onsideration o ser"i$es rendered ,as entitled to re$ei"e
the ull agent/s $o##ission o 01.+2 ro# Phila#gen under the s$heduled $o##ission rates.
1. Fro# 1)30 to 1)3+& Valenzuela soli$ited #arine insuran$e ro# one o his $lients& the 4elta Motors& %n$.
in the a#ount o P5.5 Million ro# ,hi$h he ,as entitled to a $o##ission o 012. 6o,e"er& Valenzuela
did not re$ei"e his ull $o##ission ,hi$h a#ounted to P1.* Million ro# the P5.5 Million insuran$e
$o"erage o the 4elta Motors.
0. 4uring the !eriod 1)3* to 1)37& !re#iu# !ay#ents a#ounting to P1&)5*&77*.88 ,ere !aid dire$tly to
Phila#gen and Valenzuela/s $o##ission to ,hi$h he is entitled a#ounted to P*01&303.88.
5. %n 1)33& Phila#gen started to -e$o#e interested in and e9!ressed its intent to share in the $o##ission due
Valenzuela on a ity.ity -asis ho,e"er Valenzuela reused.
+. :n Fe-ruary 7& 1)37 Phila#gen and its President& ;ien"enido M. Aragon insisted on the sharing o the
$o##ission ,ith Valenzuela. This ,as ollo,ed -y another sharing !ro!osal. Valenzuela ir#ly reiterated
his o-<e$tion to the !ro!osals o res!ondents stating that: =%t is ,ith great relu$tan$e that % ha"e to de$line
u!on re>uest to signiy #y $onor#ity to your alternati"e !ro!osal regarding the !ay#ent o the
$o##ission due #e. 6o,e"er& % ha"e no $hoi$e or to do other,ise ,ould -e "iolati"e o the Agen$y
Agree#ent e9e$uted -et,een our goodsel"es.=
*. ;e$ause o the reusal o Valenzuela& Phila#gen and its oi$ers took drasti$ a$tion against Valenzuela.
They: 'a( re"ersed the $o##ission due hi# -y not $rediting in his a$$ount the $o##ission earned ro#
the 4elta Motors& %n$. insuran$e?
'-( !la$ed agen$y transa$tions on a $ash and $arry -asis?
'$( threatened the $an$ellation o !oli$ies issued -y his? and
'd( started to leak out ne,s that Valenzuela has a su-stantial a$$ount ,ith Phila#gen.
All o these a$ts resulted in the de$line o his -usiness as insuran$e agent. Then on 4e$e#-er 13& 1)37&
Phila#gen ter#inated the General Agen$y Agree#ent o Valenzuela.
%SS@A:
BCD Valuenuela should -e not -e held lia-le sin$e non.!ay#ent o the !re#iu# renders the !oli$y in"alid
6AL4:
Ees.
FAT%::
1. The !rin$i!al $ause o the ter#ination o Valenzuela as General Agent o Phila#gen arose ro# his
reusal to share his 4elta $o##ission. The re$ords sustain the $on$lusions o the trial $ourt on the
a!!arent -ad aith o the !ri"ate res!ondents in ter#inating the General Agen$y Agree#ent o !etitioners.
1. The !ri"ate res!ondents -y the si#!le e9!edient o ter#inating the General Agen$y Agree#ent
a!!ro!riated the entire insuran$e -usiness o Valenzuela. Bith the ter#ination o the General Agen$y
Agree#ent& Valenzuela ,ould no longer -e entitled to $o##ission on the rene,al o insuran$e !oli$ies o
$lients sour$ed ro# his agen$y.
0. Borse& des!ite the ter#ination o the agen$y& Phila#gen $ontinued to hold Valenzuela <ointly and
se"erally lia-le ,ith the insured or un!aid !re#iu#s. @nder these $ir$u#stan$es& it is $lear that
Valenzuela had an interest in the $ontinuation o the agen$y ,hen it ,as un$ere#oniously ter#inated not
only -e$ause o the $o##issions he should $ontinue to re$ei"e ro# the insuran$e -usiness he has
soli$ited and !ro$ured -ut also or the a$t that -y the "ery a$ts o the res!ondents& he ,as #ade lia-le to
Phila#gen in the e"ent the insured ail to !ay the !re#iu#s due. They are esto!!ed -y their o,n !ositi"e
a"er#ents and $lai#s or da#ages.
5. Thereore& the res!ondents $annot state that the agen$y relationshi! -et,een Valenzuela and Phila#gen is
not $ou!led ,ith interest.
+. @nless the !re#iu# is !aid& an insuran$e $ontra$t does not take ee$t. ;e$ause ad#ittedly the !re#iu#s
ha"e not -een !aid& the !oli$ies issued ha"e la!sed.
*. To sue Valenzuela or the un!aid !re#iu#s ,ould -e the height o in<usti$e and unair dealing
3. @nder Arti$le 1188 o the ne, Ci"il Code& =inde#nii$ation or da#ages shall $o#!rehend not only the
"alue o the loss suered& -ut also that o the !roits ,hi$h the o-ligee ailed to o-tain.=
4:CTF%DA
% a !rin$i!al "iolates a $ontra$tual or >uasi.$ontra$tual duty ,hi$h he o,es his agent& the agent #ay as a rule
-ring an a!!ro!riate a$tion or the -rea$h o that duty. The agent #ay in a !ro!er $ase #aintain an a$tion at la,
or $o#!ensation or da#ages
SAPAFATA :P%D%:D: