2. Malayan Insurance v.

CA Choy and San Leon are solidarily liable to Vallejos and

that Malayan, as insurer of Sio Choy and subrogee of Sio
September 26, 1988 | Padilla, J. | Solidary obligation Choy as against San Leon, may be entitled to
reimbursements from San Leon if Sio Choy is made to
PETITIONER : Malayan Insurance Co., Inc.

pay the entire obligation,
RESPONDENTS : Court of Appeals, Martin C. Vallejos
(passenger of the jeep), Sio Choy (owner of the insured DOCTRINE : In solidary obligation, the creditor may
jeep), San Leon Rice Mill Inc. (employer of the driver) enforce the entire obligation against one of the
and Pangasinan Transportation Co. (PANTRANCO) solidary debtors. On the other hand, insurance is
defined as "a contract whereby one undertakes for a
SUMMARY : Malayan issued to Sio Choy an insurance
consideration to indemnify another against loss, damage,
policy covering a Willys jeep, with the insurer being
or liability arising from an unknown or contingent
liable for Sio Choy’s “own damage” and “third-party”
event."
liability. The insured jeep driven by Campollo, employee
of San Leon, collided with a PANTRANCO bus, causing
damage to the insured jeep and injuries to the driver and
Vallejos, who was riding the jeep. Vallejos filed for
damages against Malayan, Sio Choy, San Leon and
PANTRANCO. The trial court held them jointly and
severally liable to Vallejos, with Malayan being liable
only up to P20k. On appeal, CA affirmed the trial court’s
decisions but ruled that San Leon has no obligation to
reimburse Malayan for whatever amount it may pay
since San Leon is not a party to the insurance contract.
Malayan prays for the reversal of CA’s decision, or, in
the alternative, to order San Leon to reimbursement of
any amount in excess of 1⁄2 of damages it is order to pay
jointly and severally with Sio Choy. SC affirmed the
decision of the CA with modifications that only only Sio