Lessons Applicable: Assignee (Insurance)
FACTS:
- RCBC Binondo Branch initially granted a credit facility of P30M to Goyu & Sons, Inc. GOYU’s applied again and through Binondo Branch key officer's Uy’s and Lao’s recommendation, RCBC’s executive committee increased its credit facility to P50M to P90M and finally to P117M.
- As security, GOYU executed 2 real estate mortgages and 2 chattel mortgages in favor of RCBC.
- GOYU obtained in its name 10 insurance policy on the mortgaged properties from Malayan Insurance Company, Inc. (MICO). In February 1992, he was issued 8 insurance policies in favor of RCBC.
- April 27, 1992: One of GOYU’s factory buildings was burned so he claimed against MICO for the loss who denied contending that the insurance policies were either attached pursuant to writs of attachments/garnishments or that creditors are claiming to have a better right
- GOYU filed a complaint for specific performance and damages at the RTC
- RCBC, one of GOYU’s creditors, also filed with MICO its formal claim over the proceeds of the insurance policies, but said claims were also denied for the same reasons that MICO denied GOYU’s claims
- RTC: Confirmed GOYU’s other creditors (Urban Bank, Alfredo Sebastian, and Philippine Trust Company) obtained their writs of attachment covering an aggregate amount of P14,938,080.23 and ordered that 10 insurance policies be deposited with the court minus the said amount so MICO deposited P50,505,594.60.
- Another Garnishment of P8,696,838.75 was handed down
- RTC: favored GOYU against MICO for the claim, RCBC for damages and to pay RCBC its loan
- CA: Modified by increasing the damages in favor of GOYU
- In G.R. No. 128834, RCBC seeks right to intervene in the action between Alfredo C. Sebastian (the creditor) and GOYU (the debtor), where the subject insurance policies were attached in favor of Sebastian
- RTC and CA: endorsements do not bear the signature of any officer of GOYU concluded that the endorsements favoring RCBC as defective.
ISSUE: W/N RCBC as mortgagee, has any right over the insurance policies taken by GOYU, the mortgagor, in case of the occurrence of loss
HELD: YES.
- mortgagor and a mortgagee have separate and distinct insurable interests in the same mortgaged property, such that each one of them may insure the same property for his own sole benefit
- although it appears that GOYU obtained the subject insurance policies naming itself as the sole payee, the intentions of the parties as shown by their contemporaneous acts, must be given due consideration in order to better serve the interest of justice and equity
- 8 endorsement documents were prepared by Alchester in favor of RCBC
- MICO, a sister company of RCBC
- GOYU continued to enjoy the benefits of the credit facilities extended to it by RCBC.
- GOYU is at the very least estopped from assailing their operative effects.
- The two courts below erred in failing to see that the promissory notes which they ruled should be excluded for bearing dates which are after that of the fire, are mere renewals of previous ones
- RCBC has the right to claim the insurance proceeds, in substitution of the property lost in the fire. Having assigned its rights, GOYU lost its standing as the beneficiary of the said insurance policies
- insurance company to be held liable for unreasonably delaying and withholding payment of insurance proceeds, the delay must be wanton, oppressive, or malevolent - not shown
- Sebastian’s right as attaching creditor must yield to the preferential rights of RCBC over the Malayan insurance policies as first mortgagee.
