Sharuff and Co. v. Baloise Fire Insurance Co.- Proceeds of the Policy

64 SCRA 258

Facts:

>  Sharuff and Eskenazi were doing business under the firm name Sharuff and Co.

>  They insured their merchandise with Baloise.  Later on, Sharuff and Eskenazi entered into a contract of partnership and thereby changed the firm name to Sharuff and Eskenazi.

>  The merchandise insured was subsequently destroyed by fire.  Sharuff and Eskenazi filed their claim against the insurance company.

>  Baloise refused to pay on the ground that the policy was issued in the name of Sharuff and Co. and not Sharuff and Eskenazi.

Issue:

Whether or not the partnership can claim the proceeds of the policy.

Held:

Yes.

The subsequent partnership did not alter the composition of the firm.  The people involved are actually the same.  Furthermore, such change of firm name was not made to defraud the insurance company or some other person.