ASIAN TERMINALS, INC. vs. PHILAM INSURANCE CO., INC.

G.R. No. 181163 July 24, 2013

Villarama, J.

Facts:
Nichimen Corporation shipped to Universal Motors Corporation 219
packages containing 120 units of brand new Nissan Pickup Truck Double Cab
4x2 model on board the vessel S/S "Calayan Iris" from Japan to Manila. Upon
arrival in Manila, it was found out that the cargoes sustained damages. Owing
to the extent of the damage to said cargoes, Universal Motors declared them a
total loss. Universal Motors filed a formal claim for damages but were
unheeded. It then sought reparation from and was compensated by Philam.
Accordingly, Universal Motors issued a Subrogation Receipt in favor of Philam.
Philam, as subrogee of Universal Motors, filed a Complaint for damages against
Westwind, ATI and R.F. Revilla Customs Brokerage, Inc.

Issue: Whether or not subrogation is proper.

Held:
The Court held that petitioner Philam has adequately established the
basis of its claim against petitioners ATI and Westwind. Philam, as insurer, was
subrogated to the rights of the consignee, Universal Motors Corporation,
pursuant to the Subrogation Receipt executed by the latter in favor of the
former. The right of subrogation accrues simply upon payment by the
insurance company of the insurance claim. Philams action finds support in
Article 2207 of the Civil Code, which provides as follows:
Art. 2207. If the plaintiffs property has been insured, and he has
received indemnity from the insurance company for the injury or loss
arising out of the wrong or breach of contract complained of, the
insurance company shall be subrogated to the rights of the insured
against the wrongdoer or the person who has violated the contract.