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31 Tai Tong Chuache & Co. V Insurance Commission
31 Tai Tong Chuache & Co. V Insurance Commission
Pedro and Azucena Palomo acquired a parcel of a land with a building in YES. The record of the case shows that the petitioner to support its
Davao and assumed the mortgage of the building in favor of S.S.S., claim for the insurance proceeds offered as evidence the contract of
which building was insured with respondent S.S.S. Accredited Group of mortgage which has not been cancelled nor released. It has been
Insurers for P25,000.00. They then obtained a loan from Petitioner Tai held in a long line of cases that when the creditor is in possession
Tong Chuache, Inc. in the amount of P100,000.00 with a mortgage on of the document of credit, he need not prove non-payment for it is
the land and building. Arsenio Chua, partner in Tai Tong Chuache, presumed. The validity of the insurance policy taken by petitioner
insured their interest in the property with respondent Travellers Multi- was not assailed by private respondent. Moreover, petitioner's
Indemnity Corporation for P100,000.00 (P70,000.00 for the building claim that the loan extended to the Palomos has not yet been paid
and P30,000.00 for the contents thereof). was corroborated by Azucena Palomo who testified that they are
Pedro Palomo then secured a Fire Insurance Policy covering the building still indebted to herein petitioner.
for P50,000.00 with Zenith Insurance Corporation and another Fire
Insurance Policy from Philippine British Assurance Company, covering The contention of the respondent that the claim must be brought by
the same building for P50,000,00 and the contents thereof for Arsenio Chua is correct but the conclusion is wrong. Chua is a partner in
the company and can be construed to be acting as an agent. There is no
evidence that Chua issued the loan in his personal capacity or that the
loan has been extinguished.
DISPOSITIVE
SO ORDERED.
NO SEPARATE OPINIONS