- Petitioner
- C.V. Gaspar Salvage & Lighterage Corporation
- Respondent
- Lg Insurance Company
- Citation
- G.R. No. 206892
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Inting, J.
- Decided
- February 3, 2021
Summary
This consolidated case involves insurance subrogation claims for damaged fishmeal cargo during maritime transport. LG Insurance paid Great Harvest's claim for 3,662 bags of fishmeal damaged when barge AYNA-1 took on water through a hole in its bottom plating while moored at Pasig River. After payment, LG Insurance sought recovery from Fortune Brokerage (customs broker) and C.V. Gaspar (barge owner) through subrogation. The Supreme Court affirmed lower courts' findings that both defendants were liable - C.V. Gaspar as common carrier failing to prove extraordinary diligence with an unseaworthy vessel, and Fortune Brokerage under its service contract assuming full responsibility for cargo damage. The Court confirmed valid subrogation under Civil Code Article 2207 and rejected procedural challenges regarding foreign corporation standing and attorney authority. The decision establishes important precedents on common carrier liability, insurance subrogation rights, and foreign corporation litigation capacity in Philippine courts.
Intellegal Wiki · Key Holding
A foreign insurer may sue on an isolated transaction without a Philippine license; upon paying the insured it is validly subrogated under Article 2207, and a common carrier under Article 1732 is presumed negligent and bound to extraordinary diligence.
An editorially maintained summary of the rule this Supreme Court decision is cited for — not legal advice.