- Petitioner
- Durban Apartments Corporation
- Respondent
- Pioneer Insurance
- Citation
- G.R. No. 179419
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Nachura, J.
- Decided
- January 12, 2011
Summary
Pioneer Insurance sued Durban Apartments Corporation (City Garden Hotel) and its parking attendant for subrogation after paying insured Jeffrey See's claim for his carnapped vehicle. See had entrusted his vehicle to the hotel's valet parking service on April 30, 2002, receiving a claim stub, but the vehicle was stolen from the bank parking area used by the hotel. The hotel failed to appear at pre-trial and was declared in default. The RTC, CA, and Supreme Court all held the hotel liable under Civil Code provisions on contracts of deposit, finding that a necessary deposit was created when See entrusted his vehicle keys to the hotel's employee for safekeeping. The Supreme Court affirmed liability but reduced attorney's fees to P60,000.00, emphasizing the mandatory nature of pre-trial compliance and the hotel's contractual obligation as depositary.