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Synopsis:
International Films appointed this guy Bernard Gabelman as its agent in the Philippines through a power of attorney.
International Films, through Gabelman, leased the film “Monte Carlo Madness” to The Lyric Film Exchange to be shown in
different places. One of the conditions of the contract was that The Lyric Film Exchange would answer for the loss of the film
in question for whatever cause. The chief of the firm department of the Lyrics Film, telephoned the said agent (Gabelman)
informing that the showing of said film had already finished and asked at the same time, where he wished to have the film
returned to him. Gabelman went to Albo’s and asked whether he could deposit the film in question in the vault of the
defendant as the plaintiff did not have a safety vault yet. Albo declined the offer but Gabelman insisted. Thereafter, the
bodega of Lyric Film Exchange was burned, including the film, which was NOT insured.
SC held that Lyric Film cannot be held liable because Lyric Film Exchange, as subagent of the International Films in the
exhibition of the film "Monte Carlo Madness", was not obliged to insure it against fire, not having received any express
mandate to that effect, and it is not liable for the accidental destruction thereof by fire. The fact that the film was not insured
against fire does not constitute fraud or negligence on the part of Lyric because as sub-agent, it received no instruction to
that effect from its principal and the insurance does not form a part of the obligation.
Doctrine: A mere submandatary or sub-agent is NOT obliged to fulfill more than the contents of the mandate, and is also NOT
required to answer for damages caused to the principal (Art. 1718 NCC).
Madness, but the said film could not be returned the responsibility of said former agent, and that the
because it was to be shown in Cebu. Thereafter, the defendant company, as his subagent, could show it in
bodega of Lyric Film Exchange was burned, including its theaters.
the film, which was NOT insured.
Since verbal contract between Gabelman and Albo
was a sub-agency or a submandate, the defendant
ISSUE-HELD: company is NOT civilly liable for the destruction by fire
W/N Lyric Film Exchange is liable to International of the film in question.
Films for the destruction of the film by fire: [NO]
As a mere subagent, it was NOT obliged to fulfill more
RATIO: than the contents of the mandate nor to answer for
Lyric Film Exchange, as subagent of the International the damages caused to the principal by his failure to
Films in the exhibition of the film "Monte Carlo do so.
Madness," was not obliged to insure it against fire,
not having received any express mandate to that The fact that the film was not insured against fire
effect, and it is not liable for the accidental does not constitute fraud or negligence on the part
destruction thereof by fire. of the Lyric Film Exchange, Inc. because as a
subagent, it received no instruction to that effect
The preponderance of evidence shows that the verbal from its principal, and the insurance of the film does
agreement had between Gabelman (the former agent not form a part of the obligation imposed upon it by
of the International Films) and Albo (chief of the film law.
department of the Lyric Film Exchange), was that said
film "Monte Carlo Madness" would remain deposited
in the safety vault of the defendant company under