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20 Scra 261
20 Scra 261
Mora (1967)
G.R. No. L-20853 May 29, 1967
Lessons Applicable: stipulation pour autrui (Insurance)
FACTS:
Enrique Mora, owner of Oldsmobile sedan model 1956, mortgaged it to
H.S. Reyes, Inc., with the condition that they would be the beneficiary of
its insurance
June 23, 1959: The sedan was insured with State Bonding & Insurance
Co., Inc
During the period of effectivity, the sedan met an accident and it
was appraised by Bayne Adjustment Co. and repaired it with Bonifacio
Bros. and the parts were supplied by Ayala Auto Parts Co. This was all
done without the knowledge of H.S. Reyes. Enrique was billed P2,102.73
through Bayne. The insurance company drew a check deducting P100 for
franchise and entrusted it to Bayne payable to Enrique or H.S. Reyes.
Still unpaid, the sedan was delivered to Enrique without the Knowledge
of H.S. Reyes
Bonifacio Bros and Ayala Auto filed in the MTC on the theory that the
insurance proceeds should be paid directly to them
CFI affirmed MTC: H.S. Reyes, Inc. as having a better right
ISSUE: W/N there is privity between Bonifacio Bro and Ayala Auto against the insurance
company