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This case involves a dispute over an insurance payment between Manila Mahogany Manufacturing Corporation (petitioner), who insured their vehicle with Zenith Insurance Corporation (private respondent). The vehicle was damaged in an accident caused by a truck owned by San Miguel Corporation. Private respondent paid petitioner PHP 5,000 but then demanded reimbursement, arguing that San Miguel had already paid petitioner directly.
The Supreme Court held that under Article 220 of the Civil Code, the insurer is subrogated to the rights of the insured against the wrongdoer to the extent of the payment made. However, when petitioner released San Miguel from any liability, petitioner's right to retain the PHP 5,000 payment no longer existed, thereby entitling private
This case involves a dispute over an insurance payment between Manila Mahogany Manufacturing Corporation (petitioner), who insured their vehicle with Zenith Insurance Corporation (private respondent). The vehicle was damaged in an accident caused by a truck owned by San Miguel Corporation. Private respondent paid petitioner PHP 5,000 but then demanded reimbursement, arguing that San Miguel had already paid petitioner directly.
The Supreme Court held that under Article 220 of the Civil Code, the insurer is subrogated to the rights of the insured against the wrongdoer to the extent of the payment made. However, when petitioner released San Miguel from any liability, petitioner's right to retain the PHP 5,000 payment no longer existed, thereby entitling private
This case involves a dispute over an insurance payment between Manila Mahogany Manufacturing Corporation (petitioner), who insured their vehicle with Zenith Insurance Corporation (private respondent). The vehicle was damaged in an accident caused by a truck owned by San Miguel Corporation. Private respondent paid petitioner PHP 5,000 but then demanded reimbursement, arguing that San Miguel had already paid petitioner directly.
The Supreme Court held that under Article 220 of the Civil Code, the insurer is subrogated to the rights of the insured against the wrongdoer to the extent of the payment made. However, when petitioner released San Miguel from any liability, petitioner's right to retain the PHP 5,000 payment no longer existed, thereby entitling private