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Unformatted text preview: the person or company for whom he acts, and his
authority is prima facie coextensive with the business intrusted to him. . . .
An adjuster does not discharge functions of a quasijudicial nature, but represents his employer, to whom he
owes faithful service, and for his acts, in the employer's interest, the employer is responsible so long as the
acts are done while the agent is acting within the scope of his employment.
It, therefore, clearly appears that the scope and extent of the functions of an adjustment and settlement
agent do not include personal liability. His functions are merely to settle and adjust claims in behalf of his
principal if those claims are proven and undisputed, and if the claim is disputed or is disapproved by the
principal, like in the instant case, the agent does not assume any personal liability. The recourse of the
insured is to press his claim against the principal. Smith Bell v. CA, 267 SCRA 530 (1997) MAGSUMBOL
DOCTRINE: A settling agent acting within the scope of its authority cannot be held personally and/or
solidarily liable for the obligations of its disclosed principal merely because there is allegedly a need for a
speedy settlement of a claim.
FACTS: Joseph Bengzon Chua, doing business under the style of Tic Hin Chiong, Importer, bought &
imported to the Phils from the firm Chin Gact Co., Ltd. of Taipei, Taiwan 50 metric tons of Dicalcium
Phosphate, Feed Grade F15% valued at USD13k. These were contained in 1250 bags and shipped from
Taiwan for Manila. This shipment was insured by First Insurance Co. for USD19.5k against all risks at port
of departure under Marine Policy with the note 'Claim, if any, payable in USD at Manila and with Smith Bell
and Co. stamped at the lower left side of the policy as 'Claim Agent'.
The cargo arrivedin Manila and was disharged to the Iocal arrastre contractor, Metroport Services, Inc., with
a number of the cargo in apparent bad order condition. Chua secured he services of a cargo surveyor to
conduct a survey of the damaged cargo which were delivered by Chua's broker to Chua. 37 The repor...
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- Fall '14