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PIONEER v YAPDecember 19, 1974 | Fernandez, J.| | Warranties

PETITIONER: PIONEER INSURANCE AND SURETY CORPORATION, e!"!"#ner$ae%%an!RESPONDENT: O&I'A YAP, rere(en!ed b) *er a!!#rne)$"n$+ac!, CUA SOON POON re(#nden!$ae%%ee-

SUMMARY: Ya ac./"re( +"re "n(/rance +r#m P"#neer- P#%"c) *ad #!*er "n(/rance c%a/(e- Ya ac./"re( an#!*er "n(/rance #%"c)+r#m d"++eren! c#man) 0"!*#/! n#!"ce !# #r c#n(en! +#rm "n(/rer P"#neer- Ya ( (!#re b/rn( d#0n, P"#neer den"e( c%a"m beca/(e #+

"#%a!"#n #+ !*e #%"c)- C#/r! *e%d !*a! ann#!a!"#n "( a 0arran!), "#%a!"#n #+ 0*"c* 0#/%d en!"!%e "n(/rer !# re(c"nd

DOCTRINE:O!*er "n(/rance c%a/(e (ere( a( a 0arran!) !*a! !*e r#er!) 0a( n#! "n(/red b) an) #!*er #%"c)- '"#%a!"#n !*ere#+en!"!%e( "n(/rer !# re(c"nd-

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FACTS:

1- O%""a 0a( #0ner #+ a (!#re "n a 2$(!#re) b/"%d"n3 (#%d(*#"n3 ba3( and +##!0ear-

2- Ya !##5 #/! +"re "n(/rance +r#m e!"!"#ner, P"#neer

In(/rance- P#%"c) "nc%/ded #!*er "n(/rance c%a/(e6 /n%e(( (/c*

n#!"ce be 3"enbe+#re !*e #cc/rrence #+ an) %#(( #r dama3e

a%% bene+"!( /nder !*"( P#%"c) (*a%% be +#r+e"!ed-

- A! !*e !"me #+ "((/ance, an#!*er "n(/rance #%"c) "((/ed b)

8rea! Amer"can In(/rance c#er"n3 (ame r#er!"e( 0a( n#!ed#n (a"d #%"c) a( c#$"n(/rance-

4- Ya !##5 #/!, 0"!*#/! n#!"ce !# #r c#n(en! +r#m P"#nee

In(/rance, an#!*er "n(/rance #%"c) +r#m Federa% In(/rance-

- F"re br#5e #/! and Ya( (!#re 0a( b/rned- Re(#nden! Ya

+"%ed an "n(/rance c%a"m, b/! !*e (ame 0a( den"ed #n !*e

3r#/nd #+ :breac* and;#r "#%a!"#n #+ an) and;#r a%% !erm( and

c#nd"!"#n(

c#n!rar) !# Sec!"#n 1, R/%e 11 #+ !*e Re"(ed R/%e( #+C#/r!, 0*"c* re./"re( eac* ar!) !# r#e *"( #0n

a%%e3a!"#n(, "! 0#/%d (*"+! !# e!"!"#ner, re(#nden!?( b/rden

#+ r#"n3 *er r##("!"#n !*a! e!"!"#ner 0a( a0are #+ !*e

a%%e3ed (/b(!"!/!"#n, and 0"!* (/c* 5n#0%ed3e re+erred !#c#n!"n/e !*e #%"c)

$ @) !*e %a"n !erm( #+ !*e #%"c), #!*er "n(/rance 0"!*#/! !*ec#n(en! #+ e!"!"#ner 0#/%d "(# +ac!# a#"d !*e c#n!rac!-

$ T*e a%"d"!) #+ a c%a/(e "n a +"re "n(/rance #%"c) !# !*e e++ec!!*a! !*e r#c/remen! #+ add"!"#na% "n(/rance 0"!*#/! !*e

c#n(en! #+ !*e "n(/rer render( "(# +ac!# !*e #%"c) #"d "(

0e%%$(e!!%ed

$ C#/r! c"!e( General Insurance & Surety Corporation vs. NgHua:

And c#n("der"n3 !*e !erm( #+ !*e #%"c) 0*"c* re./"red!*e "n(/red !# dec%are #!*er "n(/rance(, !*e (!a!emen! "n

./e(!"#n m/(! be deemed !# be a (!a!emen! B0arran!)b"nd"n3 #n b#!* "n(/rer and "n(/red, !*a! !*ere 0ere n#

#!*er "n(/rance #n !*e r#er!)

The annotation then, must e !eeme! to e a "a##ant$that the %#o%e#t$ "as not insu#e! $ an$ othe# %o&i'$(

)io&ation the#eo* entit&e! the insu#e# to #es'in!(

$ T*e #b"#/( /r#(e #+ !*e a+#re(a"d re./"remen! "n !*e#%"c) "( !# reen! #er$"n(/rance and !*/( aer! !*e

ere!ra!"#n #+ +ra/d- T*e /b%"c, a( 0e%% a( !*e "n(/rer, "(

"n!ere(!ed "n reen!"n3 !*e ("!/a!"#n "n 0*"c* a +"re 0#/%d be

r#+"!ab%e !# !*e "n(/red-