Philippine Bar review · Question

Practice question: Nature

Multiple Choice Hard

Practice question

A qualifying compensation claim has resulted in a proper payment from the Assurance Fund. A responsible third party argues that the payment necessarily releases that party from the rights previously held by the claimant, so the government cannot enforce them. Which answer follows from Section 99?
  1. Payment always releases the responsible party.
  2. The Fund's custodian loses all enforcement authority.
  3. Subrogation applies only if the third party volunteers.
  4. The government is subrogated and the National Treasurer must enforce the acquired rights, with recoveries credited to the Fund.
  5. The claimant must be paid again before subrogation can arise.

Legal references

  • https://lawphil.net/statutes/presdecs/pd1978/pd_1529_1978.html — PD 1529, Section 99.

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