Aboitiz Shipping Corporation v. Insurance Company of North America

Summary

This landmark case establishes the principle that insurance companies' right of subrogation accrues simply upon payment of insurance claims, without need for formal assignment. The Supreme Court ruled that Insurance Company of North America, as subrogee of a consignee whose cargo sustained water damage, could recover from Aboitiz Shipping Corporation despite being an unlicensed foreign corporation, as it was pursuing an isolated business transaction. The Court applied the presumption under Article 1735 of the Civil Code that common carriers are presumed negligent when goods are damaged, which Aboitiz failed to overcome by proving extraordinary diligence. The case clarifies that substantial compliance with notice requirements suffices when the carrier's responsible officer is promptly informed and can investigate while the matter is fresh. The decision reinforced carrier liability standards and subrogation rights in marine insurance contexts.