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Insurance Case Digest: Misamis Lumber Corp. v. Capital Ins. and Surety Co., Inc. (1966)

G.R. No. L-21380             May 20, 1966
Lessons Applicable: Judicial Construction Cannot Alter Terms (Insurance)

  • Misamis Lumber Corporation (Misamis), formerly Lanao Timber Mills, Inc., insured its Ford Falcon motor car with Capital Insurance & Surety Company (Capital)
  • November 25, 1961 11 pm: The car broke when it hit a hollow block lying alongside the water hole which the driver did not see because the on-coming car did not dim its light
    • The car was towed and repaired by Morosi Motors costing P302.27 
  • November 29, 1961: After the repairs were made, Misamis made a report to Capital who only admits liability of P150
  • CFI: paragraph 4 of the policy is clear and specific and leaves no room for interpretation that the repair liability is limited to P150
ISSUE: W/N Misamis is entitled to an amount exceeding P150

  • insurance contract may be rather onerous (one-sided) but that in itself does not justify the abrogation of its express terms, terms which the insured accepted or adhered to and which is the law between the contracting parties