Republic v. Del Monte Motors
Republic v. Del Monte Motors
Republic v. Del Monte Motors
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* FIRST DIVISION.
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PANGANIBAN, C.J.:
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The Case
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Before us is a Petition for Review under Rule 45 of the
Rules 2 of Court, seeking to reverse the January 16, 2003
Order of the Regional Court (RTC) of Quezon City (Branch
221) in Civil Case No. Q-97-30412. The RTC found
Insurance Commissioner Eduardo T. Malinis guilty of
indirect contempt for3 refusing to comply with the December
18, 2002 Resolution of the lower court. The January 16,
2003 Order states in full:
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The Facts
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Issues
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Preliminary Issue:
Propriety of Review
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8
but also to the internal affairs of insurance companies. As
this case is undeniably endowed with public interest and
involves a matter of public policy, this Court shall not shirk
from its duty to educate the bench and the bar by
formulating guiding9 and controlling principles, precepts,
doctrines and rules.
Principal Issue:
Exemption of Security Deposit from Levy or
Garnishment
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„The forerunner of this [Insurance] Code was the Insurance Act which took
effect on July 1, 1915, and which was copied almost verbatim from the
California Insurance Act, with the exception of a few provisions which were
adopted from the New York Law. x x x. The first Insurance Code took effect on
December 18, 1974 and besides incorporating most of the provisions of the
Insurance Act with a few changes, it contained
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many new provisions mostly regulatory in nature. After a number of these new
provisions were rendered obsolete by subsequent amendments, the Insurance
Code of 1978 was promulgated by Presidential Decree No. 1460, incorporating
not only such amendments but also additional changes deemed necessary in
order to keep pace with the changing needs and demands of the insurance
industry. However, the substantive provisions governing the contract of
insurance itself remain for the most part as they were under the Insurance
Act.‰ (Campos, INSURANCE, [1983], pp. 8-9.)
The Court has held that rulings and general principles on insurance
recognized in the state of California have persuasive authority in the
Philippines. (Ang Giok Chip v. Springfield Fire and Marine Insurance
Co., 56 Phil. 375, December 31, 1931 and Gercio v. Sun Life Assurance
Co. of Canada, 48 Phil. 53, September 28, 1925).
11 153 Cal. 183, March 9, 1908, per curiam (citing San Francisco
Savings Union v. Long, 123 Cal. 107, December 20, 1898, per Temple, J.).
12 Id.
13 The United Harbor PilotsÊ Association of the Philippines v.
Association of International Shipping Lines, Inc., 440 Phil. 188; 391
SCRA 522, November 13, 2002.
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14 See J.L.T. Agro, Inc. v. Balansag, 453 SCRA 211, March 11, 2005.
15 Go v. Office of the Ombudsman, 413 SCRA 608, October 17, 2003;
Almendras Mining Corporation v. Office of the Insurance Commission,
160 SCRA 656, April 15, 1988.
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„Sec. 414. The Insurance Commissioner shall have the duty to see
that all laws relating to insurance, insurance companies and other
insurance matters, mutual benefit associations, and trusts for
charitable uses are faithfully executed and to perform the duties
imposed upon him by this Code, and shall, notwithstanding any
existing laws to the contrary, have sole and exclusive authority to
regulate the issuance and sale of variable contracts as defined in
section two hundred thirty-two and to provide for the licensing of
persons selling such contracts, and to issue such reasonable rules
and regulations governing the same.
„The Commissioner may issue such rulings, instructions,
circulars, orders and decisions as he may deem necessary to secure
the enforcement of the provisions of this Code, subject to the
approval of the Secretary of Finance. Except as otherwise specified,
decisions made by the Commissioner shall be appealable to the
Secretary of Finance.‰ (Emphasis supplied)
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the Code, for the benefit and security of all policy holders.
In relation to these provisions, Section 192 of the Insurance
Code states:
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„Art. 1440. A person who establishes a trust is called a trustor; one in whom
confidence is reposed as regards property for the benefit of another person is
known as the trustee; and the person for whose benefit the trust has been
created is referred to as the beneficiary.
„Art. 1441. Trusts are either express or implied. Express trusts are created
by the intention of the trustor or of the parties. Implied trusts come into being
by operation of law.‰
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Petition granted.
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