C.V. Gaspar Salvage & · G.R. 206892

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.

Statutes applied

Related cases

Other Philippine cases on the same provisions and issues.

Transimex Co. v. Mafre Asian Insurance Corp. G.R. No. 190271
Virgines Calvo Doing Business Under the Name v. Ucpb General Insurance Co. G.R. No. 148496
A.F. Sanchez Brokerage Inc. v. The Hon. Court of Appeals G.R. No. 147079
Philippine American General Insurance Company v. Pks Shipping Company G.R. No. 149038
Mr. & Mrs. Engracio Fabre, Jr. v. Court of Appeals G.R. No. 111127
Estrellita M. Bascos v. Court of Appeals G.R. No. 101089
Jaime Sabeniano, Jr. v. The Court of Appeals G.R. No. 167837

By Intellegal Editorial Board · February 3, 2021

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