Case:

Ong Guan Can v. The Century Insurance Co. (46 PHIL. 592),
December 2, 1924
FACTS

ISSUE/S
LAWS

PLAINTIFFS-APPELLEES: Ong Guan Can and the Bank of the Philippine Islands
DEFENDANT-APPELLANT: The Century Insurance Co., LTD.
PONENTE: Villamor, J.

The plaintiff owned a building that was insured against fire by the defendant in the
sum of Php 30,000, including the merchandise therein contained in the sum of Php
15,000. Both the house and merchandise insured were burned in February 28, 1923
while the policies issued by the defendant in favor of the plaintiff were still in force.

The CFI of Iloilo granted the case in favor of the plaintiff that The Century Insurance
Co. should pay Ong Guan Can the sum of Php 45,000 as the total value of the
insured house and merchandise. The Insurance Company appealed that the
judgment be modified to permit it to rebuild the house and that they be relieved
from the payment of the sum in which the building was insured.
Whether the defendant-appellant can rebuild the house burnt as a sufficient
idemnity to the inured for the actual loss suffered by him.
Article 1199. A person alternatively bound by different prestations shall completely
perform one of them.
The creditor cannot be compelled to receive part of one and part of the other
undertaking. (1131)

HOLDINGS

Yes. The defendant may build the house as an alternative prestation, freeing him
from the payment of the sum in which the building was insured. This conclusion is
in line with The Civil Codes Article 1131.
Paying the sum in which the building was insured is one of the 2 prestations
provided in one of the clauses stipulating the conditions of the policies. Based on
the same Article of the Civil Code, the complete performance of one of them is
sufficient to extinguish the obligation. While there are several prestations, only one
is due.