Unformatted text preview: unfortunate happening was reported
to the B.A. Finance Corporation and to the insurer. The Cuadys asked the B.A. Finance Corporation to
consider the same as a total loss, and to claim from the insurer the face value of the car insurance policy
and apply the same to the payment of their remaining account and give them the surplus thereof, if any. But
instead of heeding the request of the Cuadys, B.A. Finance Corporation prevailed upon the former to just
have the car repaired. Not long thereafter, however, the car bogged down. The Cuadys wrote B.A. Finance
Corporation requesting the latter to pursue their prior instruction of enforcing the total loss provision in the
insurance coverage. When B.A. Finance Corporation did not respond favorably to their request, the Cuadys
stopped paying their monthly installments on the promissory note.
In view of the failure of the Cuadys to pay the remaining installments on the note, B.A. Finance Corporation
sued them for the recovery of the said remaining installments.
Counsel for the petitioner filed a motion for postponement since the "handling" counsel was temporarily
assigned elsewhere. Said motion was denied by the trial court. At the date of hearing, the trial court allowed
private respondents to adduce evidence exparte in the form of an affidavit to be sworn to before any
authorized officer. B.A. Finance Corporation filed a motion for reconsideration of the order of the trial court
denying its motion for postponement. Said motion was granted. B.A. Finance Corporation, however, never
complied with the abovementioned order, paving the way for the trial court dismissed the case.
On appeal, the CA affirmed the decision of the trial court. B.A. Finance Corporation moved for
reconsideration but motion was denied. 3 ISSUE: WON B.A. Finance Corporation waived its right to collect the unpaid balance of the Cuady spouses
on the promissory note for its failure to enforce the total loss provision in the insurance coverage of the
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This document was uploaded on 03/11/2014.
- Fall '14