Vector Shipping Corporation vs.

American Home Insurance Company

G.R. No. 159213. July 3, 2013 Contracts; Prescription Facts: Calte entere! into a contract o" a""rei#$t%ent3 &it$ 'ector "or t$e transport o" Calte (s petroleu% car#o t$rou#$ t$e )*+ 'ector. Calte insure! t$e petroleu% car#o &it$ respon!ent "or ,,-55,-21.0. un!er )arine /pen Policy. 0"ter appro i%ately t$ree %ont$s, t$e entire petroleu% car#o o" Calte on 1oar! t$e )*+ 'ector peris$e! !ue to an acci!ent !urin# 2oya#e on 3ece%1er 20, 19.,. +$e respon!ent in!e%ni"ie! Calte "or ,,-55,-21.0.. +$e respon!ent "ile! a co%plaint a#ainst 'ector, 4oriano, an! 4ulpicio 5ines, 6nc. to reco2er t$e "ull a%ount o" ,,-55,-21.0. it pai! to Calte only on )arc$ 5, 1992.

Ratio: +$e le#al pro2ision #o2ernin# t$is case &as not 0rticle 11-7 o" t$e Ci2il Co!e, 1ut 0rticle 11-- o" t$e Ci2il Co!e. 8o&e2er, t$e present action &as not upon a &ritten contract, 1ut upon an o1li#ation create! 1y la&. 8ence, it ca%e un!er 0rticle 11-- 92: o" t$e Ci2il Co!e. +$is is 1ecause t$e su1ro#ation o" respon!ent to t$e ri#$ts o" Calte as t$e insure! &as 1y 2irtue o" t$e e press pro2ision o" la& e%1o!ie! in 0rticle 220, o" t$e Ci2il Co!e, to &it: 0rticle 220,. 6" t$e plainti""(s property $as 1een insure!, an! $e $as recei2e! in!e%nity "ro% t$e insurance co%pany "or t$e in;ury or loss arisin# out o" t$e &ron# or 1reac$ o" contract co%plaine! o", t$e insurance co%pany s$all 1e su1ro#ate! to t$e ri#$ts o" t$e insure! a#ainst t$e &ron#!oer or t$e person &$o $as 2iolate! t$e contract. 6" t$e a%ount pai! 1y t$e insurance co%pany !oes not "ully co2er t$e in;ury or loss, t$e a##rie2e! party s$all 1e entitle! to reco2er t$e !e"iciency "ro% t$e person causin# t$e loss or in;ury. 9<%p$asis supplie!: 4u1ro#ation un!er 0rticle 220, o" t$e Ci2il Co!e #i2es rise to a cause o" action create! 1y la&. For purposes o" t$e la& on t$e prescription o" actions, t$e perio! o" li%itation is ten years.