Case #29

FEDERAL EXPRESS CORPORATION VS. AMERICAN HOME ASSURANCE COMPANY, ET.

AL.
G.R. No. 150094
August 18, 2004
Ponente: Panganiban
Nature of Case: Subrogation of rights
FACTS:
Shipper SMITHKLINE USA delivered to carrier Burlington Air Express, an agent of
herein petitioner, a cargo shipment, insured with respondent which consists of 109
cartons of veterinary biologicals for delivery to consignee SMITHKLINE and French
Overseas Company in Makati City with the words, REFRIGERATE WHEN NOT IN
TRANSIT and PERISHABLE stamp marked on its face however 12 days after the
cargoes arrived in Manila it was found out that the same were stored only in a room
with 2 air conditioners running in the warehouse of Cargohaus Inc., to cool the place
instead of a refrigerator.
As a consequence of the result of the veterinary biologics test, SMITHKLINE
abandoned the shipment and, declaring total loss for the unusable shipment, filed
a claim with AHAC through its representative in the Philippines, the Philam
Insurance Co., Inc. (PHILAM) which recompensed SMITHKLINE for the whole insured
amount. Thereafter, PHILAM filed an action for damages against the FEDEX
imputing negligence on either or both of them in the handling of the cargo where it
was decided that FEDEX is solidarily liable with Cargohaus Inc.
ISSUE:
Is FEDEX liable for damage to or loss of the insured goods?
HELD:
No. Upon receipt of the insurance proceeds, the consignee (Smithkline) executed a
subrogation Receipt in favor of respondents authorizing them to file claims and
begin suit against any such carrier, vessel, person, corporation or government.
Undeniably, the consignee had a legal right to receive the goods in the same
condition it was delivered for transport to petitioner and if that right was violated,
the consignee would have a cause of action against the person responsible therefor.
In the exercise of its subrogatory right, an insurer may proceed against an erring
carrier and to all intents and purposes, it stands in the place and in substitution of
the consignee.

WHEREFORE,
the
Petition
is GRANTED, and
the
assailed
Decision REVERSED insofar as it pertains to Petitioner Federal Express Corporation.
No pronouncement as to costs.

Case # 30
ABOITIZ SHIPPING CORPORATION VS. INSURANCE COMPANY OF NORTH AMERICA
GR No. 168402
August 6, 2008
Ponente: Reyes, R. T.
Nature of case: Subrogation of rights
FACTS:
MSAS Cargo International Limited and/or Associated and/or Subsidiary Companies
(MSAS) procured an "all-risk marine insurance policy from ICNA UK Limited of
London for its cargo, consisting of wooden work tools and workbenches purchased
by consignee Science Teaching Improvement Project (STIP)which was later on
received by Aboitiz and shipped to Cebu however upon arrival, the checker noted
that the crates were slightly broken or cracked at the bottom causing the cargo to
be withdrawn by the representative of the consignee, STIP and delivered
to Don Bosco Technical High School, Punta Princesa, Cebu City where it was
received by Mr. Bernhard Willig who later on reported the damage to Aboitiz.
Consignee filed a claim against ICNA who then paid consignee and a subrogation
receipt was duly signed by Willig. ICNA then advised Aboitiz of the receipt signed in
its favor but received no reply so it filed for collection at the RTC.
ISSUE:
Whether or not ICNA can claim under the right of subrogation
HELD:
YES. Only when that foreign corporation is "transacting" or "doing business" in the
country will a license be necessary before it can institute suits. It may, however,
bring suits on isolated business transactions, which is not prohibited under
Philippine law. The policy benefits any subsequent assignee, or holder, including the
consignee, who may file claims on behalf of the assured.

WHEREFORE, the petition is DENIED and the appealed Decision AFFIRMED.