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    Cathay Insurance v. CA and Remington GR 76145

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    Princess Faith
    The document summarizes an insurance dispute between Cathay Insurance Co. and Remington Industrial Sales Corp. Remington filed a complaint seeking payment for losses incurred when a shipment of steel pipes it insured with Cathay rusted during an ocean transit from Japan to the Philippines. The trial court ruled in Remington's favor, ordering Cathay to pay losses equivalent to 30% of the shipment's value plus interest and fees. The Supreme Court affirmed, finding that rusting at sea constitutes a "peril of the sea" covered by the insurance policy. Construing any ambiguities against the insurer, the ruling ensured that insuring cargo for ocean transport served its purpose.

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    © All Rights Reserved
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    Cathay Insurance v. CA and Remington GR 76145

    Uploaded by

    Princess Faith
    39 views1 page
    The document summarizes an insurance dispute between Cathay Insurance Co. and Remington Industrial Sales Corp. Remington filed a complaint seeking payment for losses incurred when a shipment of steel pipes it insured with Cathay rusted during an ocean transit from Japan to the Philippines. The trial court ruled in Remington's favor, ordering Cathay to pay losses equivalent to 30% of the shipment's value plus interest and fees. The Supreme Court affirmed, finding that rusting at sea constitutes a "peril of the sea" covered by the insurance policy. Construing any ambiguities against the insurer, the ruling ensured that insuring cargo for ocean transport served its purpose.

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    6. Cathay Insurance v. CA and Remington Gr 76145

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    The document summarizes an insurance dispute between Cathay Insurance Co. and Remington Industrial Sales Corp. Remington filed a complaint seeking payment for losses incurred when a shipment of steel pipes it insured with Cathay rusted during an ocean transit from Japan to the Philippines. The trial court ruled in Remington's favor, ordering Cathay to pay losses equivalent to 30% of the shipment's value plus interest and fees. The Supreme Court affirmed, finding that rusting at sea constitutes a "peril of the sea" covered by the insurance policy. Construing any ambiguities against the insurer, the ruling ensured that insuring cargo for ocean transport served its purpose.

    Copyright:

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

    Cathay Insurance v. CA and Remington GR 76145

    Uploaded by

    Princess Faith
    The document summarizes an insurance dispute between Cathay Insurance Co. and Remington Industrial Sales Corp. Remington filed a complaint seeking payment for losses incurred when a shipment of steel pipes it insured with Cathay rusted during an ocean transit from Japan to the Philippines. The trial court ruled in Remington's favor, ordering Cathay to pay losses equivalent to 30% of the shipment's value plus interest and fees. The Supreme Court affirmed, finding that rusting at sea constitutes a "peril of the sea" covered by the insurance policy. Construing any ambiguities against the insurer, the ruling ensured that insuring cargo for ocean transport served its purpose.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    [G.R. No.

     76145. June 30, 1987.]

    CATHAY INSURANCE CO., petitioner, vs. HON. COURT OF


    APPEALS, and REMINGTON INDUSTRIAL SALES
    CORPORATION, respondents.

    FACTS:
    A complaint was filed by private respondent corporation against petitioner
    (then defendant) company seeking collection of the sum of P868,339.15
    representing private respondent's losses and damages incurred in a shipment of
    seamless steel pipes under an insurance contract in favor of the said private
    respondent as the insured, consignee or importer of aforesaid merchandise while in
    transit from Japan to the Philippines on board vessel SS "Eastern Mariner." The total
    value of the shipment was P2,894,463.83 at the prevailing rate of P7.95 to a dollar in
    June and July 1984, when the shipment was made.
    The trial court decided in favor of private respondent corporation by ordering
    petitioner to pay it the sum of P866,339.15 as its recoverable insured loss equivalent
    to 30% of the value of the seamless steel pipes; ordering petitioner to pay private
    respondent interest on the aforecited amount at the rate of 34% or double the ceiling
    prescribed by the Monetary Board per annum from February 3, 1982 or 90 days
    from private respondent's submission of proof of loss to petitioner until paid as
    provided in the settlement of claim provision of the policy; and ordering petitioner to
    pay private respondent certain amounts for marine surveyor's fee, attorney's fees
    and costs of the suit.

    ISSUE:
    WON the rusting of steel pipes in the course of a voyage is considered a "peril of the
    sea."

    RULING:
    Yes. In denying the petition, the SC held that there is no question that the
    rusting of steel pipes in the course of a voyage is a "peril of the sea" in view of the
    toll on the cargo of wind, water, and salt conditions. At any rate if the insurer cannot
    be held accountable therefor, We would fail to observe a cardinal rule in the
    interpretation of contracts, namely, that any ambiguity therein should be construed
    against the maker/issuer/drafter thereof, namely, the insurer. Besides the precise
    purpose of insuring cargo during a voyage would be rendered fruitless. Be it noted
    that any attack of the 15-day clause in the policy was foreclosed right in the pre-trial
    conference.

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