5/7/2020 Cebu Shipyard and Engineering Works, Inc. v.

William Lines – IBP Zamboanga del Norte Chapter

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Works, Inc. v. William Lines
G.R. No. 132607,5 May 1999, 306 SCRA 762
 Articles

FACTS:
 Case Digests

William Lines, Inc. brought its vessel M/V Manila City to the Cebu
 Chapter News
Shipyard and Engineering Works, Inc (CSEW) in Lapulapu City for

 Uncategorized annual dry-docking and repair. Subject vessel was insured with
Prudential Guarantee for P45,000,000.00 for hull and machinery. The
Hull Policy included an “Additional Perils” clause covering loss of or
Recent Posts damage to the vessel through the negligence of, among others, ship

repairmen. CSEW was also insured by Prudential Guarantee for third

 CMS Logging party liability under s Shiprepairs Legal Liability Insurance Policy for
Inc. v. Court of
P10,000,000.00 only.
Appeals
After subject vessel was transferred to the docking quay, it caught
 Lim v. Saban fire and sank, resulting to its eventual total loss. William Lines, Inc.

filed a complaint for damages against CSEW, alleging that the fire
 Eurotech
which broke out in M/V Manila City was caused by CSEW’s
Industrial
negligence and lack of care. An amended complaint, impleading
Technologies,
Prudential Guarantee as co-plaintiff, was filed after the latter had paid
Inc. v. Cuizon
William Lines, Inc. the value of the hull and machinery insurance of
Copyright © 2017 - 2020 IBP Zamboanga del Norte Chapter. All rights
M/V Manila City. RTC ruled that the cause of theConnect
fire waswith
through
us the
 Manila Remnant
reserved.
negligence of CSEW. CA affirmed the appealed decision.
Co., Inc. v. Court
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5/7/2020 Cebu Shipyard and Engineering Works, Inc. v. William Lines – IBP Zamboanga del Norte Chapter

of Appeals ISSUE:

 Bedia v. White Whether or not Prudential has the right of subrogation against its own

insured.
Whether or not the parties intended for them to be a co-assured in
Recent Comments the insurance policy.

 Marjorie RULING:
Mejorada-

Cuenco on 13 The petition is unmeritorious. Upon proof of payment by Prudential

ZN law grad Guarantee to William Lines, the former was subrogated to the right of

pass 2017 Bar the latter to indemnification from CSEW. Thus, when Prudential, after

Exam due verification of the merit and validity of the insurance claim of

William Lines, paid the latter the total amount covered by its
 Prescription on insurance policy, it was subrogated to the right of the latter to recover
IBP-ZN joins the insured loss from CSEW, the liable party.
community
A stipulation in the work order that requires William Lines to maintain
outreach in Jose
Dalman insurance on the vessel during the period of dry-docking or repair,
works to the benefit of CSEW. However, the fact that CSEW benefits
 Ronald on from the said stipulation does not automatically make it as a co-

Salient features assured of William Lines. The hull and machinery insurance procured
of the Revised by William Lines, Inc. from Prudential named only “William Lines,
Guidelines for Inc.” as the assured. Thus, when the insurance policy involved

Continuous Trial named only William Lines, Inc. as the assured thereunder, the claim
of Criminal of CSEW that it is a co-assured is unfounded.
Cases
*Case digest by Princess Dianne Kris S. Decierdo, LLB-IV, Andres

Bonifacio College Law School, SY 2018-2019

PopularRecent  By jurist | January 26th, 2019 | Case Digests | 0 Comments

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May 24th, 2017 

13 CMS Logging Inc. v. Court of Lim v. Saban

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April 26th, 2018
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