TRAVELLERS INSURANCE & SURETY CORP. v.

CA (MENDOZA)

272 SCRA 536HERMOSISIMA, JR; May 22, 1997

NATURE

The petition herein seeks the review and reversal of the decision of
respondent Court of Appeals affirmingin toto the judgment of the Regional
Trial Court inanaction for damages filed by private respondentVicente
Mendoza, Jr. as heirof his mother who waskilled in a vehicular accident.

FACTS

-an old lady was hit by a taxicab. The taxicab waslater identified and a case
was filedagainst the driverand owner. Later, an amendment was filed to
includethe insurancecompany. RTC and CA ordered that theowner, driver as
well as the insurancecompany beheld solidarily liable.

ISSUE

WON RTC and CA erred

HELD

YES- Where the contract provides for indemnity againstliability to third

persons, then thirdpersons to whomthe insured is liable can sue the insurer.
Wherethecontract is for indemnity against actual loss orpayment, then third
personscannot proceed against the insurer, the contract being solely to
reimbursetheinsured for liability actually discharged by himthru payment to
third persons,said third persons'recourse being thus limited to the insured
alone. Butin the case at bar,

there was no contract shown.What then was the basis of the RTC and the
CAto saythat the insurance contract was a third-party liability insurance
policy?

Consequently, thetrial court was confused as it did not distinguishbetween

theprivate respondent's cause of actionagainst the owner and the driver of
the LadyLovetaxicab and his cause of action against petitioner.The former is
based on tortsand quasi-delicts whilethe latter is based on contract.- Even
assuming arguendothat there was such acontract, private respondent's cause
of action cannotprevail because he

failed to file the writtenclaim mandated by the Insurance Code (beforeit

wasamended-action must be brought withinsix months from date of the
accident
(this iswhats
applicable here)

; after amendment-"action or suit for recovery of damage due to loss orinjury

mustbe brought in proper cases, with theCommissioner or the Courts within
oneyear fromdenial of the claim, otherwise the claimant's right of action shall
prescribe" )

He is deemed, under thislegal provision, to have waived his rights as

againstpetitioner-insurer.Disposition:

petition granted