AgencyDPFebruary32014

Ibid

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Unformatted text preview: , the principal in the case at bar, may suffer. Unquestionably, the Cuadys suffered pecuniary loss in the form of salvage value of the motor vehicle in question, not to mention the amount equivalent to the unpaid balance on the promissory note, when B.A. Finance Corporation steadfastly refused and refrained from proceeding against the insurer for the payment of a clearly valid insurance claim, and continued to ignore the yearning of the Cuadys to enforce the total loss provision in the insurance policy, despite the undeniable fact that Rea Auto Center, the auto repair shop chosen by the insurer itself to repair the aforementioned motor vehicle, misrepaired and rendered it completely useless and unserviceable. Accordingly, there is no reason to depart from the ruling set down by the respondent appellate court. In this connection, the Court of Appeals said:... Under the established facts and circumstances, it is unjust, unfair and inequitable to require the chattel mortgagors, appellees herein, to still pay the unpaid balance of their mortgage debt on the said car, the non­payment of which account was due to the stubborn refusal and failure of appellant mortgagee to avail of the insurance money which became due and demandable after the insured motor vehicle was badly damaged in a vehicular accident covered by the insurance risk. ... (Ibid.) PREMISES CONSIDERED, the instant petition is DENIED, and the decision appealed from is AFFIRMED. PNB v. Manila Surety, 122 Phil 106; 14 SCRA 776 (1965) DORIA DOCTRINE: An agent is required to act with the care of a good father of a family (Art. 1887) and becomes liable 4 for the damages which the principal may suffer through his non­performance (Art. 1884). FACTS: PNB opened a letter of credit and advanced $120,000 to Edgington Oil Refinery for 8,000 tons of hot asphalt. Of this amount, 2,000 tons worth P279,000 were released and delivered to Adams & Taguba Corporation (ATACO) under a trust receipt guaranteed by Manila Surety & Fidelity Co. up to the amount of P75,000. To pay for the asphalt, ATACO constituted PNB its assignee and attorney­in­fact to receive and collect from the Bureau of Public Works the...
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