Malayan Insurance v. Philippine Nails and Wires
Malayan Insurance v. Philippine Nails and Wires
Malayan Insurance v. Philippine Nails and Wires
Quick Facts
Cause of Action Complaint for sum of money
(Complaint/ Information)
Evidence in Question Documentary evidence – summary of received steel
billets presented by PNWC
How was it raised to the SC? Review of CA decision
Trial Court Decision In favor of PNWC
Supreme Court Decisions In favor of Malayan
SUMMARY
RELEVANT FACTS
Respondent Philippine Nails and Wires Corp. insured against all risks its shipment of steel billets (10k
metric tons valued at P67Mn) with petitioner Malayan Insurance Co. Inc.
The shipment delivered was short by 377.168 metric tons.
PNWC claimed insurance for the shortage (valued at P2.7Mn) but Malayan refused to pay.
PNWC then filed a complaint for sum of money against Malayan.
Malayan then moved to dismiss the said complaint on the basis that there was no cause of action and that it
was filed in the wrong venue. The motion was denied. An amended complaint was filed.
On November 4, 1993, PNWC moved to declare petitioner in default.
The RTC granted the motion and allowed the presentation of evidence ex parte before the clerk of court.
PNWC presented its lone witness, Jeanne King. She presented a summary of the received steel billets, as
support to the shortage of the delivery.
The RTC decided in favor of PNWC.
On appeal to the CA, Malayan argued that the RTC erred in awarding damages to PNWC based on
unauthenticated documentary evidence and hearsay. The RTC allegedly also admitted evidence which is
irregular in nature and not in accordance with the Rules of Court.
The CA affirmed the RTC decision in toto. It held that Jeanne King was a competent witness because she
personally prepared the documentary evidence and had personal knowledge of the allegations in the
complaint.
ISSUE/S
W/N PNWC should have authenticated the documentary evidence it submitted at the trial court
W/N Jeanne King’s testimony was hearsay (for additional info)
RATIO DECIDENDI
Issue Ratio
University of the Philippines College of Law
RULING
WHEREFORE, the petition is GRANTED. The decision of the Court of Appeals dated September 30, 1998 and its
resolution on March 25, 1999 in CA-G.R. CV No. 45547 are REVERSED and SET ASIDE. In lieu thereof, Civil
Case No. 63445 is hereby ordered DISMISSED., …
SEPARATE OPINIONS
NOTES