Professional Documents
Culture Documents
Philippine
Phoenix
Surety
&
Insurance
Company vs. Woodworks Inc. [GR L-25317, 6
August 1979] First Division, Melencio-Herrera (J):
4 concur, 1 abroad.
Facts: On 21 July 1960, upon Woodworks Inc.'s
application, Philippine Phoenix Surety & Insurance
Company (Phoenix) issued in its favor Fire Insurance
Policy 9749 for P500,000.00 whereby Phoenix insured
Woodworks Inc.'s building, machinery and equipment for
a term of one year from 21 July 1960 to 21 July 1961
against loss by fire. The premium and other charges
including the margin fee surcharge of P590.76 and the
documentary stamps in the amount of P156.60 affixed on
the Policy, amounted to P10,593.36. Woodworks Inc. did
not pay the premium stipulated in the Policy when it was
issued nor at any time thereafter. On 19 April 1961, or
before the expiration of the one-year term, Phoenix
notified Woodworks Inc., through its Indorsement F6963/61, of the cancellation of the Policy allegedly upon
request of Woodworks Inc. The latter has denied having
made such a request. In said Indorsement, Phoenix
credited Woodworks Inc. with the amount of P3,110.25 for
the unexpired period of 94 days, and claimed the balance
of P7,483.11 representing "earned premium from 21 July
1960 to 18 April 1961 or, say 271 days. On 6 July 1961,
Phoenix demanded in writing for the payment of said
amount. Woodworks Inc., through counsel, disclaimed any
liability in its reply-letter of 15 August 1961, contending,
in essence, that it need not pay premium "because the
Insurer did not stand liable for any indemnity during the
period the premiums were not paid." On 30 January 1962,
Phoenix commenced action in the Court of First Instance
of Manila, Branch IV (Civil Case 49468), to recover the