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LAW
[Summer]
G.R. No. L-2294
May 25, 1951
DIGEST
FILIPINAS
COMPAIA
SEGUROS, petitioner,
vs.
CHRISTERN,
HUENEFELD
CO., INC., respondent.
DE
and
CASE:
SUMMARY:
The Court of Appeals ruled that a
private corporation is a citizen of the
country or state by and under the
laws of which it was created or
organized.
It rejected the theory that
nationality of a private corporation is
determined by the character or
citizenship
of
its
controlling
stockholders.
But the Supreme Court held that
Christern Huenefeld is an enemy
corporation since majority of its
stockholders are German subjects.
The two American cases
relied up by the Court of Appeals
have lost their force in view of a
newer case where the control test
was adopted.
The Philippine Insurance Law
provides that anyone, except a public
enemy, may be insured.
It stands to reason that an
insurance policy ceases to be
allowable as soon as the insured
becomes a public enemy.
Since
Christern
Huenefeld
became a public enemy on Dec. 10,
1941, then the policy has ceased to
be
enforcible
and
therefore
Huenefeld
is
not
entitled
to
indemnity.
However, elementary
rules of justice require that the
Christern
Huenefeld
Corporation bought a fire insurance
policy from Filipinas Compania de
Seguros
to
cover
merchandise
contained in a building.
During the Japanese military
occupation, this same merchandise
and the building were burned, so
Huenefeld filed a claim under the
policy.
However, Filipinas Compania de
Seguros refused to pay alleging that
the policy had ceased to be in force
when the United States declared war
against Germany.
Filipinas Compania contended
that although organized and created
under Philippine laws, Huenefeld is a
German subject, and hence, a public
enemy,
since
majority
of
its
stockholders are Germans.
On the other hand, Filipinas
Compania
is
under
American
jurisdiction.
The Director of Bureau of Financing,
Philippine
Executive
Commission
ordered Filipinas Compania to pay, so
Filipinas Compania did pay.
The case at bar is about the
recovery of that sum paid.
ISSUES:
1. Whether or not Christern
Huenefeld is a German subject.
of
crossed
supplied.)
check."
(Emphasis