SC denies Ayala Land petition to hold insurance firm liable for Glorietta 2 explosion

(Eagle News) — The Supreme Court has denied Ayala Land Inc.’s petition to hold Standard Insurance liable for the explosion in Glorietta 2 in 2007.

In denying the petition for review on certiorari filed by Ayala Land, the first division chaired by Associate Justice Lucas Bersamin noted that Branch 65 of the Makati Regional Trial Court had already ruled the loss or damage of the property insured was caused by an excluded peril not covered by the firm’s policy.

Excluded perils under the policy include pollution, war, invasion, act of foreign enemy, hostilities or warlike operations, mutiny, and acts of terrorism.

The division said that it was “a settled rule” that the findings of fact of the trial court are entitled to great weight and respect “especially” since the Court of Appeals, in an April 13 decision and Aug. 7 resolution, like the Makati RTC, agreed to dismiss Ayala Land’s complaint against Standard Insurance based on the finding of excluded peril.

The High Court added the  petition for review on certiorari under Rule 45 of the Rules of Court filed by Ayala Land bars “any question pertaining to factual issues raised.”

According to the High Court, Ayala Land also declared in numerous statements that the explosion was caused by an explosive device, which constitutes an act of terrorism.

It noted that Ayala Land even released an official press statement stating its disappointment following the finding of a multi-agency task force that the cause of the explosion was the build-up of methane gas and diesel vapor at the basement.

“To suddenly claim that the explosion was not caused by an explosive device simply because Malayan Insurance denied its claim under its Terrorism policy with the latter is merely an afterthought that cannot be considered by this Court,” the SC said.

According to the High Court, even if it were to conclude that the build-up of methane and diesel vapor in the basement was the cause of the explosion, Ayala would still be in the losing end as pollution was classified as an excluded peril under the Standard Insurance policy.