[ G.R. No. 196072. September 20, 2017 ] 818 Phil. 464
THIRD DIVISION
[ G.R. No. 196072. September 20, 2017 ]
STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION (BERMUDA) LIMITED, PETITIONER, VS. SULPICIO LINES, INC. RESPONDENT. [G.R. NO. 208603] SULPICIO LINES, INC. PETITIONER, VS. STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION (BERMUDA) LIMITED, REPONDENT. DECISION
LEONEN, J.:
An insured member may be compelled to arbitration pursuant to the Rules of the Protection and Indemnity Club, which were incorporated in the insurance policy by reference. Where there are multiple parties, the court must refer to arbitration the parties covered by the agreement while proceeding with the civil action against those who were not bound by the arbitration agreement. G.R. No. 196072 is a Petition for Review[1] seeking to set aside the November 26, 2010 Decision[2] and March 10, 2011 Resolution[3] of the Court of Appeals in CA-GR. SP No. 106103. GR. No. 208603 is a Petition for Indirect Contempt[4] filed by Sulpicio Lines, Inc. (Sulpicio) against Steamship Mutual Underwriting Association (Bermuda) Limited (Steamship). It prays, among others, that Steamship be (a) declared guilty of indirect contempt; (b) imposed a fine of P30,000.00; and (c) ordered to restitute to Sulpicio the amount of US$69,570.99 or its equivalent in Philippine currency plus interest, computed from December 3, 2012 until fully restituted.[5] Steamship was a Bermuda-based Protection and Indemnity Club, managed outside London, England.[6] It insures its members-shipowners against “third party risks and liabilities” for claims arising from (a) death or injury to passengers; (b) loss or damage to cargoes; and (c) loss or damage from collisions.[7] Sulpicio insured its fleet of inter-island vessels with Steamship for Protection & Indemnity risks through local insurance agents, Pioneer Insurance and Surety Corporation (Pioneer Insurance) or Seaboard-Eastern Insurance Co., Inc. (Seaboard-Eastern).[8] One (1) of these vessels was the M/V Princess of the World, evidenced by a Certificate of Entry and Acceptance issued by Steamship, which provided:
CERTIFICATE OF ENTRY AND ACCEPTANCE by the Club of your proposal for entering the ship(s) specified below, and of the tonnage set out against each, in: Class 1 PROTECTION AND INDEMNITY of the Club from Noon 20th February 2005 to Noon 20th February 2006