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Dominion Insurance Corp. v. Court of Appeals
Dominion Insurance Corp. v. Court of Appeals
Court of
Appeals
jurist
FACTS:
On January 25, 1991, plaintiff Rodolfo S. Guevarra instituted Civil Case No.
8855 for sum of money against defendant Dominion Insurance Corporation.
Plaintiff sought to recover thereunder the sum of P156,473.90 which he
claimed to have advanced in his capacity as manager of defendant to satisfy
certain claims filed by defendant’s clients.
On November 18, 1992, the court a quo rendered judgment against the
defendant. On December 14, 1992, Dominion appealed the decision to the
Court of Appeals.On July 19, 1996, the Court of Appeals promulgated a
decision affirming that of the trial court.6 On September 3, 1996, Dominion
filed with the Court of Appeals a motion for reconsideration.7 On July 16,
1997, the Court of Appeals denied the motion. Hence, his appeal.
ISSUE:
Whether or not respondent Guevarra acted within his authority as agent for
petitioner?
RULING:
No.
“The principal is not liable for the expenses incurred by the agent in the
following cases:
”xxxxxxxxx“
“Whoever pays for another may demand from the debtor what he has paid,
except that if he paid without the knowledge or against the will of the debtor,
he can recover only insofar as the payment has been beneficial to the
debtor.”
In this case, when the risk insured against occurred, petitioner’s liability as
insurer arose.1âwphi1 This obligation was extinguished when respondent
Guevarra paid the claims and obtained Release of Claim Loss and
Subrogation Receipts from the insured who were paid. Thus, to the extent
that the obligation of the petitioner has been extinguished, respondent
Guevarra may demand for reimbursement from his principal. To rule
otherwise would result in unjust enrichment of petitioner.