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Unformatted text preview: d; that when, on May 10, 1900, this latter pueblo was destroyed
by fire Oria Hermanos & Co. lost all its stocks there and could not collect the insurance of P32,000 on the
said property, which, through the fault, negligence, and omission of Gutierrez Hermanos had not been
insured. This amount last mentioned, added to the premiums, expenses, and interest paid by Oria
Hermanos & Co. aggregates the sum of P63,700, payment of which defendant demanded of plaintiff.
SC: Even though Gutierrez Hermanos had increased the value of the insurance on the hemp and
merchandise in Catubig through means of ordinary fire insurance, pursuant to the instructions given by
Molleda & Oria, the predecessors of Oria Hermanos & Co. and whose rights this latter firm represents, the
same result would have followed, inasmuch as in this class of insurance the insuring company does not
assume risks for fires and damages caused by war, riot, and military force; and as in the official letter
aforementioned plaintiff was not authorized to increase the insurance through means of a war insurance
policy, it is unquestionable that plaintiff, in not increasing the ordinary insurance. proceeded in a prudent and
reasonable manner and for the benefit of the defendant by saving the latter from uselessly paying an
important premium for an insurance which it afterwards could not have collected. Furthermore, the news was
already disseminated in Manila that the pueblo of Catubig had been completely burned to the ground. Not
only, therefore, would it have been impossible to obtain the increase of an ordinary insurance, but even a war
insurance, though offering to pay a large and excessive premium. ABSOLVED
Third Counterclaim: It is alledged that the firm of Gutierrez Hermanos, complying with orders from Oria
Hermanos, & Co., insured against all war risks, in a certain insurance company of London, England, whose
agent in the Philippine Islands was Stevenson & Co., the stock of hemp which the defendant company had
in the pueblo of Catarman, Samar, for 3,000 pounds sterling, and paid the premiu...
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- Fall '14