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Unformatted text preview: ms thereon at the rate of
10 per cent per quarter; that, during the first quarter for which the premiums had been so paid, all the
insured tobacco belonging to Oria Hermanos & Co., in Catarman, was stolen by the insurgent forces; that
then the underwriter refused to pay the amount of the insurance on the ground that Gutierrez Hermanos had
made out the said insurance defectively, wherefore Oria Hermanos & Co. ordered its agent Gutierrez
Hermanos to institute proceedings before the courts of these Islands for the collection of the amount of the
said insurance; but that plaintiff instead brought suit for the purpose before the courts of England and by its
negligence, indolence, and carelessness had, during a period of eight years, obliged the defendant firm to
incur costly expenditures which, added to the amount of the insurance premiums paid, attorney’s fees, 11 costs, interest, etc., aggregated P67,000; that for this sum, together with legal interests thereon, it prayed
that it be reimbursed by Gutierrez Hermanos.
SC: The firm of Gutierrez Hermanos, in executing orders and charges of Oria Hermanos & Co., became, by
virtue of an implied agency, an agent of the latter and, in the fulfillment of the orders of the principal, adjusted
its action to the instructions of Oria Hermanos & Co. The record does not show that in so doing it proceeded
with negligence or with deceit. Therefore there is no reason nor legal ground whereby plaintiff should be
compelled to pay the sum demanded in the third counterclaim for the causes therein stated. (Arts. 1710,
1719 and 1726 of the Civil Code.) Consequently Gutierrez Hermanos should be absolved from the third
counterclaim filed by defendant. ABSOLVED
Fourth counterclaim: Oria alleged that the defendant firm set forth that, under the commission contract
and the current account contract existing between both companies, Gutierrez Hermanos bound itself to
acquire for and forward to Oria Hermanos & Co. such rice and other effec...
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- Fall '14