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3. HOME INSURANCE COMPANY VS. EASTERN SHIPPING LINES [G.R.

ISSUES:
NO. L-34382; 34383; JULY 20, 1983] 1. WON the contracts entered into by petitioner prior to obtaining license
PETITIONER: THE HOME INSURANCE COMPANY are void? NO.
RESPONDENTS: EASTERN SHIPPING LINES and/or ANGEL JOSE 2. WON the petitioner can get reimbursement from the respondents? YES.
TRANSPORTATION, INC. and HON. A. MELENCIO-HERRERA, Presiding Judge
of CFI of Manila (GR 34382); N. V. NEDLLOYD LIJNEN; COLUMBIAN RULING: Petition granted. CFI reversed and set aside.
PHILIPPINES, INC., and/or GUACODS, INC., and HON. A. MELENCIO-
HERRERA (GR 343823) When the complaints were filed, the petitioner had already secured
the necessary license to conduct its insurance business in the
DOCTRINE: A foreign insurance corporation not license to do Philippines, thus, it could already filed suits. However, when the
business in the Philippines or its assignee may not maintain any insurance contracts which formed the basis of these cases were
suit for the recovery of any debt, claim or demand whatever, but executed, the petitioner had not yet secured the necessary
the contract it entered into is not void. However, the lack of licenses and authority.
capacity to sue by foreign corporation at time of execution of CFI declared that pursuant to the basic public policy reflected in
contract cured by its subsequent registration here. the Corporation Law, the insurance contracts executed before a
license was secured must be held null and void and could not be
FACTS: validated by the subsequent procurement of the license.
1. 2 cases consolidated by the Court involving the same petitioner As early as 1924, the Court ruled in Marshall Wells Co. v. Henry W.
and both for recovery of maritime damages. In GR 34382, S. Kajita Elser & Co. that the object of Sections 68 and 69 of the Corporation
& Co., on behalf of Atlas Consolidated Mining & Development Law was to subject the foreign corporation doing business in the
Corporation, shipped on board the SS "Eastern Jupiter' owned by Philippines to the jurisdiction of our courts, not to prevent the
Eastern Shipping (CARRIER) from Osaka, Japan, 2,361 coils of foreign corporation from performing single acts, but to prevent it
"Black Hot Rolled Copper Wire Rods". from acquiring a domicile for the purpose of business without
2. The shipment was insured by petitioner against all risks and taking the steps necessary to render it amenable to suit in the local
CONSIGNEE ultimately received at its warehouse less than the courts.
shipped. Thus, petitioner paid the CONSIGNEE under its insurance Illinois statute provides that a foreign corporation that fails to
policy.
comply with the conditions of doing business in that state cannot
3. In GR 34383, Hansa Transport Kontor shipped from Bremen,
maintain a suit or action, thus, contract having been entered
Germany, on board the VESSEL, SS "NEDER RIJN" owned by the
without permit to transact business is therefore null and void while
respondent N. V. Nedlloyd Lijnen, and represented in the
Michigan statute provides that contracts of a foreign corporation
Philippines by its local agent, the defendant Columbian Philippines,
that fails to comply with the statute is not void, but they may be
Inc. (CARRIER), which was also insured by herein petitioner.
enforced only after compliance therewith.
Harvester Macleod, Inc. (CONSIGNEE) received packages with
Our jurisprudence leans toward Michigan statute, the contracts are
missing items. Hence, the petitioner paid the CONSIGNEE under its
insurance policy. enforceable and the requirement of registration affects only the
4. Petitioner filed in CFI of Manila for reimbursement against herein remedy.The prohibition against doing business without first
respondents. In both cases, petitioner averred that it has capacity securing a license is now given penal sanction under the
to sue as a foreign insurance company duly authorized to do Corporation Code, thus, it is not necessary to declare the contract
business in the Philippines through its agent, Mr. VICTOR H. BELLO, null and void even as against the erring foreign corporation. The
of legal age and with office address at Oledan Building, Ayala lack of capacity at the time of the execution of the contracts was
Avenue, Makati, Rizal. cured by the subsequent registration. Hence, petitioner may get
5. Respondents, except for Angel Jose Transportation, Inc., denied reimbursement from the respondents.
petitioner's capacity to sue for lack of knowledge or information
sufficient to form a belief as to the truth thereof.
6. CFI: Dismissed for failure to prove its capacity to sue. Hence, this
petition.

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