PNB v Welch, Fairchild & Co., Inc. 4 April 1923 | Sree, !. | "opic# $%liaion' and lia%iliie' o( aen' o hird parie' )$C"*IN+# An aen ho o%liae' hi' principal o deliver 'peci-c proper o a hird par /a no herea(er, o he pre0dice o( 'ch hird par, appropriae and appl he 'a/e proper, or i' proceed', o he pa/en o( de%' oin % he principal o he aen and he circ/'ance ha he principal a''en' o 'ch applicaion o( he proper doe' no aler he ca'e. FAC"S# 1915 6a Co/pania Naviera Inc a' orani7ed in 8anila, enaed in he %'ine'' o( /arine 'hippin. Welch, Fairchild & Co WFC5 i' one o( i' 'hareholder', ih 32 'hare' 6a Co/pania a' a ne enerpri'e in he 'hippin orld and needed o ac:ire a proper co/ple/en o( ve''el' and ade:ae e:ip/en. Shippin vale' ere hih, he co/pan did no have ';cien capial pro/pin i' o;cial' o appl a loan o he PNB o prcha'e a %oa called Benito Juarez %ein %ein 'old in he >> o rn (or one one ear (ro/ 8a 1?, 191. deliver o( he ve''el ve''el a' "he deliver delaed, he /one a' no delivered and a' no advanced % PNB nil 'everal /onh' laer. @eo Fairchild, pre'iden o( WFC, vi'ied
)eliver o( he prcha'e /one old %e /ade % he Anlo 6ondon and Pari' Naional Ban in San Franci'co, a' aen o( PNB oeher ih he deliver o( he %ill o( 'ale and he polic in'rance.
Doever, he ve''el needed repair' %e(ore i cold %e di'pached. WFC, Fairchild & Co. in 8anila roe o PNB re:e'in i o ca%le i' corre'ponden in San Franci'co o relea'e he /one and pa (or he ve''el iho re:irin he deliver o( he %ill o( 'ale or polic o( in'rance. "he leer a' con-r/ed % 6a Co/pania. PNB 'en a ca%lera/ o i' corre'ponden ahori7in he pa/en o( he prcha'e price iho he prodcion o( he %ill o( 'ale or in'rance polic. Ee''el a' hen delivered. Benito Juarez a' in'red % WFC. $n i'
a o he Philippine', Philippine', he ve''el enconered a 'or/ o Daaii and %eca/e a oal lo''. When he in'rance a' aen o o cover he voae, no polic a' i''ed % an in'rer % he in'rance a' placed % WFC o( San Franci'co, a' aen' o( he Co/pania and i a' aen o in he ordinar cor'e o( %'ine'' o proec he inere'' inere'' o( all parie'. I a' /an /onh' %e(ore WFC had colleced he (ll a/on de (ro/ he in'rer'. "he (ll a/on (or hich he had %een in'red a' Benito Juarez had ran'/ied o 8anila % he la' da' o( !ne 1919. In'ead o( re/iin =13,>>> o WFC 8anila, i a' /i'aenl ran'(erred o PNB in Ne or or and onl a%o a /onh /onh laer ha ahori a' received % PNB 8anila o pa WFC =13,>>> pon accon o( he in'rance. I a' hi' /i'ae /i'ae ha aro'ed he aenion o( he %an o;cial'. "he aned o
inercep he =13,>>>ran'(er on he rond ha he /one %eloned o he %an. "hi' a' %a'ed on he leer o( WFC pro/i'in ha i( he %an old advance he prcha'e /one o( he ve''el iho re:irin he concrren deliver o( he polic in'rance, he 'a/e old %e delivered % 6a Co/pania. "he /one a' ihheld ainin an inere' o( P119.G, laer credied o he accon o( WFC. WFC poined o ha i aced /erel in he capaci o( aen (or 6a Co/pania and ha i a' no leall %ond % he pro/i'e /ade in he leer o he eec ha he polic in'rance old %e delivered o he %an in 8anila % 6a Co/pania o hich he PNB pre'iden ac:ie'ced. A 2, 19195 PNB /ade a de/and pon 6a Co/pania (or he deliver o( he in'rance polic % a' in(or/ed ha no in'rance polic a' received a' he ve''el had %een in'red in San Franci'co % WFC in %ehal( o( 6a Co/pania. PNB hen ca'ed 6a Co/pania o eHece pleded pon hree 'rea/er' a' 'ecri (or i' inde%edne''. When i %eca/e apparen ha 6a Co/pania a' in'olven, he %an /ade (or/al de/and pon WFC (or he deliver o( he in'rance polic %a'ed on he earlier leer % WFC. 8eanhile, he proceed' o( he in'rance pon he Benito Juarez a' ih WFC 8anila havin applied % WFC in par 'ai'(acion o( inde%edne'' incrred % 6a Co/pania o i. "hi' di'po'iion o( he in'rance /one a' /ade % WFC ih he aci approval o( 6a Co/pania. ISS<+# WN WFC i' lia%le o PNB J *A"I$#
Alhoh an aen ho ac' (or a revealed principal in he /ain o( a conrac doe' no %eco/e per'onall %ond o he oher par in he 'en'e ha an acion can ordinaril %e /ainained pon 'ch conrac direcl aain' he aen, 'ch rle canno %e applied in hi' ca'e. +ven hoh he o%liaion creaed % he A' 191 leer a' direcl %indin onl on he principal, and ha in la, he aen /a 'and apar here(ro/, i i' /ani(e' ha one ho ha' inervened in he /ain o( a conrac in he characer o( aen canno %e per/ied o inercep and appropriae he hin hich he principal i' %ond o deliver and here% /ae per(or/ance % he principal i/po''i%le. Noih'andin he pro/i'e held o 0oinl % principal and aen in he leer', he o have con'pired o /ae an applicaion o( he proceed' o( he in'rance enirel conrar o he enor o( he leer'. B vire o( he pro/i'e conained in he leer o( A' , 191, he %an %eca/e he e:ia%le oner o( he in'rance eeced on he Benito Juarez o he eHen nece''ar o inde/ni( he %an (or he /one advanced % i, in reliance pon ha pro/i'e, (or he prcha'e o( 'aid ve''el and hi' rih o( he %an /' %e re'peced % all per'on' havin de noice hereo(, and /o' o( all % he de(endan hich oo o he in'rance i'el( in he inere' o( he parie' hen concerned, incldin o( cor'e he %an. "he de(endan here(ore canno no %e per/ied o inore he rih o( he %an and appropriae he in'rance o he pre0dice o( he %an, even hoh he ac %e done ih he con'en o( i' principal !d/en appealed (ro/ i' rever'ed. !d/en enered in (avor o( he plaini o recover (ro/ he de(endan. )ISS+N" | 8alcol/, !. !d/en 'hold %e a;r/ed. "here i' no conracal relaion %eeen WFC and PNB ih re'pec o he /one in :e'ion.
