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    Cathay Insurance Co. vs. Hon. Court of Appeals, and Remington Industrial Sales Corporation Facts

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    Raven Claire Malaca
    - Cathay Insurance was sued by Remington Industrial Sales Corporation to collect losses from rust damage to a shipment of steel pipes from Japan to the Philippines that was insured by Cathay. - The trial court ruled in favor of Remington, but Cathay appealed arguing that rust damage was an inherent vice not covered under the policy. - The Court of Appeals upheld the trial court's decision, finding that rust damage from wind, water and salt exposure during shipping was a covered "peril of the sea." The Supreme Court affirmed this ruling, concluding that rust damage was not an inherent vice in this instance.

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    Cathay Insurance Co. vs. Hon. Court of Appeals, and Remington Industrial Sales Corporation Facts

    Uploaded by

    Raven Claire Malaca
    113 views1 page
    - Cathay Insurance was sued by Remington Industrial Sales Corporation to collect losses from rust damage to a shipment of steel pipes from Japan to the Philippines that was insured by Cathay. - The trial court ruled in favor of Remington, but Cathay appealed arguing that rust damage was an inherent vice not covered under the policy. - The Court of Appeals upheld the trial court's decision, finding that rust damage from wind, water and salt exposure during shipping was a covered "peril of the sea." The Supreme Court affirmed this ruling, concluding that rust damage was not an inherent vice in this instance.

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    Insurance

    Original Title

    Cathay Insurance v CA

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    - Cathay Insurance was sued by Remington Industrial Sales Corporation to collect losses from rust damage to a shipment of steel pipes from Japan to the Philippines that was insured by Cathay. - The trial court ruled in favor of Remington, but Cathay appealed arguing that rust damage was an inherent vice not covered under the policy. - The Court of Appeals upheld the trial court's decision, finding that rust damage from wind, water and salt exposure during shipping was a covered "peril of the sea." The Supreme Court affirmed this ruling, concluding that rust damage was not an inherent vice in this instance.

    Copyright:

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

    Cathay Insurance Co. vs. Hon. Court of Appeals, and Remington Industrial Sales Corporation Facts

    Uploaded by

    Raven Claire Malaca
    - Cathay Insurance was sued by Remington Industrial Sales Corporation to collect losses from rust damage to a shipment of steel pipes from Japan to the Philippines that was insured by Cathay. - The trial court ruled in favor of Remington, but Cathay appealed arguing that rust damage was an inherent vice not covered under the policy. - The Court of Appeals upheld the trial court's decision, finding that rust damage from wind, water and salt exposure during shipping was a covered "peril of the sea." The Supreme Court affirmed this ruling, concluding that rust damage was not an inherent vice in this instance.

    Copyright:

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

    CATHAY INSURANCE CO. vs. HON.

    COURT OF APPEALS, and REMINGTON


    INDUSTRIAL SALES CORPORATION

    Facts:
    Private respondent filed against petitioner (then defendant) seeking collection of the sum of
    P868,339.15 representing 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 the pipes 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.

    The trial court decided in favor of private respondent corporation and ordered the petitioner to pay.

    Respondent contends that:


    • Insurance policies are regarded with extreme caution by courts and are to be strictly construed
    against the insurer; obscure phrases and exceptions should not be allowed to defeat the very
    purpose for which the policy was procured.
    • Rust is not an inherent vice of the seamless steel pipes without interference of external factors.

    The petitioner however maintains that:


    • The insistence of private respondent that rusting is a peril of the sea and that rusting is not an
    inherent vice or in the nature of steel pipes is erroneous.
    • Private respondent inaccurately invokes the rule of strict construction against insurer under the
    guise of construction in order to impart a non-existing ambiguity or doubt into the policy so as
    to resolve it against the insurer.
    • Rusting is not a risk insured against, since a risk to be insured against should be a casualty or
    some casualty, something which could not be foreseen as one of the necessary incidents of
    adventure.

    Issue:
    WON Cathay Insurance is liable

    Ruling:
    YES. 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. If the insurer cannot be
    held accountable therefor, we would fail to observe a cardinal rule in the interpretation of contracts
    that any ambiguity therein should be construed against the insurer. Besides the precise purpose of
    insuring cargo during a voyage would be rendered fruitless.

    Finally, it is a cardinal rule that save for certain exceptions, findings of facts of the appellate
    tribunal are binding on Us. Not one of said exceptions can apply to this case.

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