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C1 Salonga v. Warner, Barnes & Co. Digest

The Supreme Court dismissed the complaint filed by the plaintiff against Warner, Barnes & Co., Ltd. The plaintiff had filed a claim for P717.82 for shortage in shipment of goods that were insured by Westchester Fire Insurance Company of New York. The Court ruled that Warner, Barnes was not the real party in interest since it did not enter into any contract with the plaintiff and only served as the adjustment agent for the foreign insurance company. As the representative of the principal, any action must be brought against the principal itself, which in this case is Westchester Fire Insurance Company.

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136 views1 page

C1 Salonga v. Warner, Barnes & Co. Digest

The Supreme Court dismissed the complaint filed by the plaintiff against Warner, Barnes & Co., Ltd. The plaintiff had filed a claim for P717.82 for shortage in shipment of goods that were insured by Westchester Fire Insurance Company of New York. The Court ruled that Warner, Barnes was not the real party in interest since it did not enter into any contract with the plaintiff and only served as the adjustment agent for the foreign insurance company. As the representative of the principal, any action must be brought against the principal itself, which in this case is Westchester Fire Insurance Company.

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Nic Ong
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Salonga v. Warner, Barnes & Co.

88 Phil 125 | G.R. No. L-2246


January 31, 1951
On the matter of Real Party-in-interest (III.C.1)
Ponente: Justice Bautista Angelo

Relevant Facts:
Westchester Fire Insurance Company of New York entered into a
contract with Gamboa whereby said company insured one case of
rayon yardage which said Gamboa shipped from San Francisco,
California. The insurance company undertook to pay to the sender or
her consignee the damages that may be caused to the goods shipped
subject to some conditions. There was a shortage in shipment which
lead to a claim of P717.82 by plaintiff filed against Warner, Barnes &
Co., Ltd., as agent of the insurance company in the Philippines. The trial
court rendered in favor of plaintiff and was appealed to the Supreme
Court.

Issue: Whether the defendant is the real party in interest against whom
the suit should be brought.

Ruling: Complaint is dismissed.

Ratio Decidendi:
The defendant did not enter into any contract either with the
plaintiff or his consignor. The real party in interest is the party who
would be benefited or injured by the judgment, or the "party entitled
to the avails of the suit”. The defendant is a settlement and adjustment
agent of the foreign insurance company. His functions are merely to
settle and adjusts claims in behalf of his principal and does not assume
any personal liability. The recourse of the insured is to press his claim
against the principal. An action based upon a right of action belonging
to a principal cannot be brought in the name of his representative.

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