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Vector Shipping Corporation, et al. Vs. American Home Assurance Co., et al.

VECTOR SHIPPING CORPORATION and FRANCISCO SORIANO, Petitioners, vs. AMERICAN HOME ASSURANCE COMPANY and SULPICIO LINES, INC., Respondents.

G.R. No. 159213 | 2013-07-03

FIRST DIVISION 

DECISION 

BERSAMIN, J.: 

Subrogation under Article 2207 of the Civil Code gives rise to a cause of action created by law. For purposes of the law on the prescription of actions, the period of limitation is ten years. 

The Case 

Vector Shipping Corporation (Vector) and Francisco Soriano appeal the decision promulgated on July 22, 2003, 1 whereby the Court of Appeals (CA) held them jointly and severally liable to pay P7 ,455,421.08 to American Home Assurance Company (respondent) as and by way of actual damages on the basis of respondent being the subrogee of its insured Caltex Philippines, Inc....