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    Delsan Transport Lines Inc Vs CA

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    Shie La Ma Rie
    Delsan Transport Lines, Inc. contracted with Caltex to transport fuel oil from Batangas to Zamboanga City. The shipment sank during transport, and the insurer paid Caltex for the lost cargo. The insurer then sued Delsan to recover the payment. Delsan argued the payment was an admission of seaworthiness, precluding recovery, and that the policy was not presented. However, the court ruled that carriers are presumed negligent unless proven otherwise. The insurer's right to recover through subrogation is based in equity and does not require privity of contract or a written assignment. The subrogation receipt alone was sufficient to establish the insurer's right to recover the amount paid for the

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    Delsan Transport Lines Inc Vs CA

    Uploaded by

    Shie La Ma Rie
    268 views1 page
    Delsan Transport Lines, Inc. contracted with Caltex to transport fuel oil from Batangas to Zamboanga City. The shipment sank during transport, and the insurer paid Caltex for the lost cargo. The insurer then sued Delsan to recover the payment. Delsan argued the payment was an admission of seaworthiness, precluding recovery, and that the policy was not presented. However, the court ruled that carriers are presumed negligent unless proven otherwise. The insurer's right to recover through subrogation is based in equity and does not require privity of contract or a written assignment. The subrogation receipt alone was sufficient to establish the insurer's right to recover the amount paid for the

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    Subrogation-

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    Delsan Transport Lines Inc vs CA

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    Delsan Transport Lines, Inc. contracted with Caltex to transport fuel oil from Batangas to Zamboanga City. The shipment sank during transport, and the insurer paid Caltex for the lost cargo. The insurer then sued Delsan to recover the payment. Delsan argued the payment was an admission of seaworthiness, precluding recovery, and that the policy was not presented. However, the court ruled that carriers are presumed negligent unless proven otherwise. The insurer's right to recover through subrogation is based in equity and does not require privity of contract or a written assignment. The subrogation receipt alone was sufficient to establish the insurer's right to recover the amount paid for the

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    268 views1 page

    Delsan Transport Lines Inc Vs CA

    Uploaded by

    Shie La Ma Rie
    Delsan Transport Lines, Inc. contracted with Caltex to transport fuel oil from Batangas to Zamboanga City. The shipment sank during transport, and the insurer paid Caltex for the lost cargo. The insurer then sued Delsan to recover the payment. Delsan argued the payment was an admission of seaworthiness, precluding recovery, and that the policy was not presented. However, the court ruled that carriers are presumed negligent unless proven otherwise. The insurer's right to recover through subrogation is based in equity and does not require privity of contract or a written assignment. The subrogation receipt alone was sufficient to establish the insurer's right to recover the amount paid for the

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    © All Rights Reserved
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    Download as docx, pdf, or txt
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    Delsan Transport Lines, Inc. v.

    Court of Appeals
    G.R. No. 127897, 15 November 2001, 369 SCRA 24
    FACTS:

    Caltex entered into a contract of affreightment with Delsan Transport Lines, Inc., for a period of
    one year whereby the said common carrier agreed to transport Caltex’s industrial fuel oil from
    the Batangas-Bataan Refinery to different parts of the country. Under the contract, petitioner
    took on board its vessel, MT Maysun, 2,277.314 kiloliters of industrial fuel oil of Caltex to be
    delivered to the Caltex Oil Terminal in Zamboanga City. The shipment was insured with the
    private respondent, American Home Assurance Corporation.

    On August 14, 1986, MT Maysun set sail from Batangas for Zamboanga City. Unfortunately, the
    vessel sank in the early morning of August 16, 1986 near Panay Gulf in the Visayas taking with it
    the entire cargo of fuel oil.

    The Respondent (insurance) paid the Caltex the amount of P5,096,635.57 representing the
    amount of the value of the lost cargo.

    ISSUE:

    1. Whether or not the payment made by the private respondent to Caltex for the insured value of
    the lost cargo amounted to an admission that the vessel was seaworthy, thus precluding any
    action for recovery against the petitioner.

    2. Whether or not the non-presentation of the marine insurance policy bars the complaint for
    recovery of sum of money for lack of cause of action

    RULING:

    No, under the law, extra ordinary diligence is required by the common carrier in taking good
    care of the goods. The common carrier is presumed negligent unless the contrary provides
    otherwise. The right of subrogation has its roots in equity. It is designed to promote and to
    accomplish justice and is the mode which equity adopts to compel the ultimate payment of a
    debt by one who in justice and good conscience ought to pay. It is not dependent upon, nor does
    it grow out of, any privity of contract or upon written assignment of claim. It accrues simply
    upon payment by the insurance company of the insurance claim.

    The presentation in evidence of the marine insurance policy is not indispensable in this case
    before the insurer may recover from the common carrier the insured value of the lost cargo in
    the exercise of its subrogatory right. The subrogation receipt, by itself, is sufficient to establish
    not only the relationship of herein private respondent as insurer and Caltex, as the assured
    shipper of the lost cargo of industrial fuel oil, but also the amount paid to settle the insurance
    claim. The right of subrogation accrues simply upon payment by the insurance company of the
    insurance claim.

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