Eagle Star v. Chin Yu | Reyes, J.

March 31, 1955|

NATURE
Petition for review on certiorari
FACTS
- Atkin, Kroll !o., loa"e" on the #. #. Roe$h #ilverli%ht owne"
an" o$erate" &y 'ei%h (oe%h !o., 1) &ales of assorte"
*n"erwear consi%ne" to !hia +* in the !ity of Manila.
- ,he shi$-ent was ins*re" a%ainst all risks &y .a%le #tar /ns. !o.
*n"er a $olicy iss*e" to the shi$$er an" &y the latter assi%ne" to the
consi%nee.
- ,he vessel arrive" in Manila &*t of the 1) consi%ne" to !hia +*
only 10 were "elivere" to hi- as the re-ainin% ) co*l" not &e
fo*n". 501 of the 3 "elivere" &ales were also fo*n" "a-a%e"
-!hia +* clai-e" in"e-nity for the -issin% an" "a-a%e" &ales &*t
the clai- was "ecline", first, &y the carrier an" later &y the ins*rer,
where !hia +* &ro*%ht the $resent action a%ainst &oth, incl*"in%
their res$ective a%ents in the Phili$$ines.
- An action was filed at the CFI after more than !ears after
deliver! of the damaged "ales and the date when the missing
"ales should have "een delivered, the action was resiste" &y the
Atkins an" .a%le #tar $rinci$ally on the %ro*n" of $rescri$tion.
-,! favore" !hia +* an" !A affir-e".
-!ARR/.R2s "efense of $rescri$tion is -a"e to rest on the
followin% sti$*lation of the &ill of la"in%3
/n any event the carrier an" the shi$ shall &e "ischar%e" fro- all
lia&ility in res$ect of loss or "a-a%e *nless s*it is &ro*%ht within
one year after the "elivery of the %oo"s or the "ate when the
%oo"s sho*l" have &een "elivere". (This stipulation is but a
repetition of a provision in the CA 65 which says that bills of
lading covering shipments from the US to the Phils should be
brought win one year after the delivery of the goods or the date
when the goods should have been delivered to hold the carrier
liable!"
- /4#5R.R2s clai- of $rescri$tion is fo*n"e" *$on the ter-s of the
$olicy an" not *$on the &ill of la"in%. 5n"er o*r law, as $er Art.
11)) 4!!, $rescri$tion is 10 years after the ri%ht of action accr*es.
-6*t co*nsel for the ins*rer clai- that this stat*tory li-itation -*st
yiel" to the ff. sti$*lation in the $olicy3 #o suit action on this
Policy$ for the recovery of any claim$ shall be sustainable in any
Court of law or e%uity unless the insured shall have fully complied
with all the terms and conditions of this Policy nor unless
commenced with twelve (&'" months ne(t after the happening of the
loss ! ! !
ISSUES # AR$U%ENTS
784 Atkin2s action has $rescri&e"9 48
RATI&NA'E
- #.!. :1-A. ;/ns*rance !o"e< Any condition$ stipulation or
agreement in any policy of insurance$ limiting the time for
commencing an action thereunder to a period of less than one year
from the time when the cause of action accrues$ is void!
-)nsular *overnment vs! +ran,3 =-atters res$ectin% a re-e"y, s*ch
as the &rin%in% of s*it, a"-issi&ility of evi"ence, an" stat*te of
li-itations, "e$en" *$on the law of the $lace where the s*it is
&ro*%ht.= Any $olicy cla*se contrary to this a-en"-ent to the
/ns*rance Act can2t &e %iven effect in an action in o*r co*rts.
- /n this case, if the $olicy is %iven effect, the $rescri$tive cla*se
wo*l" re"*ce the $erio" allowe" the ins*re" for &rin%in% his action
to less than 1 year as the $rescri$tive cla*se wo*l" &e%in fro- the
ha$$enin% of the loss, Moreover, the ins*re" has to co-$ly first
with all the ter-s an" con"itions of the $olicy which cons*-es
ti-e.
-6ein% contrary to the law of the for*-, s*ch sti$*lation can2t &e
%iven effect.
-,he $rescri$tion cla*se co*l" &e har-oni>e" with section :1-A of
the /ns*rance Act &y takin% it to -ean that the ti-e %iven the
ins*re" for &rin%in% his s*it is twelve -onths after the ca*se of
action accr*es.
Pa%e 1 of ?
- /f so, when "i" the ca*se of action accr*e9 !hia +*2s action "i"
not accr*e *ntil his clai- was finally re@ecte" &y the ins*rance
co-$any. ,his is &eca*se, &efore s*ch final re@ection, there was no
real necessity for &rin%in% s*it.
- As the $olicy $rovi"es that the ins*re" sho*l" file his clai-, first,
with the carrier an" then with the ins*rer, he ha" a ri%ht to wait for
his clai- to &e finally "eci"e" &efore %oin% to co*rt.
- A*rther-ore, there is nothin% in the recor" to show that the clai-
was re@ecte" in the year 19)B, either &y the ins*rance co-$any in
'on"on or its settlin% a%ents in the Phili$$ines.
- Aor the $*r$ose of this action, !hia +*Cs clai- was consi"ere" to
have &een finally re@ecte" &y the ins*rer on A$ril ??, 19)D. (aving
"een filed within twelve months form that date) the action
cannot "e deemed to have *rescri"ed even on the su**osition
that the *eriod given the insured for "ringing suit under the
*rescri*tive clause of the *olic! is twelve months after the
accrual of the cause of action.
- Contractual limitations contained in insurance policies are
regarded with e(treme -ealousy by courts and will be strictly
construed against the insurer and should not be permitted to
prevent a recovery when their -ust and honest application would
not produce that result! ;): !. J. #. ?B3.<
Pa%e ? of ?