Corpo Atty. Busmente Set 2

8/10/2019 Corpo Atty. Busmente Set 2

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FIRST DIVISION

[G.R. No. 119002. October 19, 2000]

INTERNATIONAL EXPRESS TRAVEL & TOUR SERVICES, INC., petitioner, vs. ON.COURT O! APPEALS, ENRI "AN, PILIPPINE !OOT#ALL !E$ERATION,respondents.

$ E C I S I O N

"APUNAN, J.%

On June 30 1989, petitioner International Express Travel an Tour Servi!es, In!",t#rou$# its %ana$in$ ire!tor, &rote a letter to t#e '#ilippine Foot(all Feeration )Feeration*,t#rou$# its presient private responent +enri a#n, erein t#e -or%er o--ere its servi!esas a travel a$en!. to t#e latter"/1 T#e o--er &as a!!epte"

'etitioner se!ure t#e airline ti!ets -or t#e trips o- t#e at#letes an o--i!ials o- t#eFeeration to t#e Sout# East 2sian a%es in uala 4u%pur as &ell as various ot#er trips tot#e 'eople5s Repu(li! o- 6#ina an 7ris(ane" T#e total !ost o- t#e ti!ets a%ounte to'9,:"83" For t#e ti!ets re!eive, t#e Feeration %ae t&o partial pa.%ents, (ot# inSepte%(er o- 1989, in t#e total a%ount o- '1;,;":0"/e!t inton$ 2la., pai t#e a%ount o- '31,03"00"/

On


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t#e sai rulin$, t#e trial !ourt rationaliAeB

De-enant +enri a#n &oul #ave (een !orre!t in #is !ontentions #a it (een ul.esta(lis#e t#at e-enant Feeration is a !orporation" T#e trou(le, #o&ever, is t#at neit#ert#e plainti-- nor t#e e-enant +enri a#n #as au!e an. evien!e provin$ t#e !orporateexisten!e o- t#e e-enant Feeration" In para$rap# < o- its !o%plaint, plainti-- asserte t#atCDe-enant '#ilippine Foot(all Feeration is a sports asso!iation xxx"C T#is #as not (een

enie (. e-enant +enri a#n in #is 2ns&er" 7ein$ t#e 'resient o- e-enant Feeration,its !orporate existen!e is &it#in t#e personal no&le$e o- e-enant +enri a#n" +e !oul#ave easil. enie spe!i-i!all. t#e assertion o- t#e plainti-- t#at it is a %ere sports asso!iation,i- it &ere a o%esti! !orporation" 7ut #e i not"

x x x

2 voluntar. unin!orporate asso!iation, lie e-enant Feeration #as no po&er to enter into,or to rati-., a !ontra!t" T#e !ontra!t entere into (. its o--i!ers or a$ents on (e#al- o- su!#asso!iation is not (inin$ on, or en-or!ea(le a$ainst it" T#e o--i!ers or a$ents are t#e%selvespersonall. lia(le"

x x x/9

T#e ispositive portion o- t#e trial !ourt5s e!ision reasB

@+EREFORE, >u$%ent is renere orerin$ e-enant +enri a#n to pa. t#e plainti-- t#eprin!ipal su% o- 'urii!al existen!e o- t#eFeeration" It rationaliAe t#at sin!e petitioner -aile to prove t#at +enri a#n $uarantee t#eo(li$ation o- t#e Feeration, #e s#oul not (e #el lia(le -or t#e sa%e as sai entit. #as aseparate an istin!t personalit. -ro% its o--i!ers"

'etitioner -ile a %otion -or re!onsieration an as an alternative pra.er pleae t#at t#eFeeration (e #el lia(le -or t#e unpai o(li$ation" T#e sa%e &as enie (. t#e appellate!ourt in its resolution o- 8 Fe(ruar. 199:, ere it state t#atB


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2s to t#e alternative pra.er -or t#e ?oi-i!ation o- t#e De!ision (. expressl. e!larin$ in t#eispositive portion t#ereo- t#e '#ilippine Foot(all Feeration )'FF* as lia(le -or t#e unpaio(li$ation, it s#oul (e re%e%(ere t#at t#e trial !ourt is%isse t#e !o%plaint a$ainst t#e'#ilippine Foot(all Feeration, an t#e plainti-- i not appeal -ro% t#is e!ision" +en!e, t#e'#ilippine Foot(all Feeration is not a part. to t#is appeal an !onse=uentl., no >u$%ent%a. (e pronoun!e (. t#is 6ourt a$ainst t#e 'FF &it#out violatin$ t#e ue pro!ess !lause,

let alone t#e -a!t t#at t#e >u$%ent is%issin$ t#e !o%plaint a$ainst it, #a alrea. (e!o%e-inal (. virtue o- t#e plainti--5s -ailure to appeal t#ere-ro%" T#e alternative pra.er is t#ere-oresi%ilarl. DENIED"/1urii!al existen!e o- national sports asso!iations" T#is %a. (e $leane -ro%t#e po&ers an -un!tions $rante to t#ese asso!iations" Se!tion 1 o- R"2" 313: proviesB

SE6" 1" Functions, powers and duties of Associations" H T#e National Sports5 2sso!iations#all #ave t#e -ollo&in$ -un!tions, po&ers an utiesB

1" To aopt a !onstitution an (.Hla&s -or t#eir internal or$aniAation an $overn%ent


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!an it (e -oun in R"2" 313: or '"D" 0 an. provision !reatin$ t#e '#ilippine Foot(allFeeration" T#ese la&s %erel. re!o$niAe t#e existen!e o- national sports asso!iations anprovie t#e %anner (. i!# t#ese entities %a. a!=uire >urii!al personalit." Se!tion 11 o-R"2" 313: proviesB

SE6" 11" National Sports' Association; organization and recognition. H 2 National 2sso!iations#all (e or$aniAe -or ea!# iniviual sports in t#e '#ilippines in t#e %anner #ereina-ter

provie to !onstitute t#e '#ilippine 2%ateur 2t#leti! Feeration" 2ppli!ations -or re!o$nitionas a National Sports5 2sso!iation s#all (e -ile &it# t#e exe!utive !o%%ittee to$et#er &it#,a%on$ ot#ers, a !op. o- t#e !onstitution an (.Hla&s an a list o- t#e %e%(ers o- t#epropose asso!iation, an a -ilin$ -ee o- ten pesos"

T#e Exe!utive 6o%%ittee s#all $ive t#e re!o$nition applie -or i- it is satis-ie t#at saiasso!iation &ill pro%ote t#e purposes o- t#is 2!t an parti!ularl. se!tion t#ree t#ereo-" Noappli!ation s#all (e #el penin$ -or %ore t#an t#ree %ont#s a-ter t#e -ilin$ t#ereo- &it#outan. a!tion #avin$ (een taen t#ereon (. t#e exe!utive !o%%ittee" S#oul t#e appli!ation (ere>e!te, t#e reasons -or su!# re>e!tion s#all (e !learl. state in a &ritten !o%%uni!ation tot#e appli!ant" Failure to spe!i-. t#e reasons -or t#e re>e!tion s#all not a--e!t t#e appli!ation

i!# s#all (e !onsiere as una!te uponB Provided, however, T#at until t#e exe!utive!o%%ittee #erein provie s#all #ave (een -or%e, appli!ations -or re!o$nition s#all (epasse upon (. t#e ul. ele!te %e%(ers o- t#e present exe!utive !o%%ittee o- t#e'#ilippine 2%ateur 2t#leti! Feeration" T#e sai exe!utive !o%%ittee s#all (e issolve upont#e or$aniAation o- t#e exe!utive !o%%ittee #erein provie: Provided, further,T#at t#e-un!tionin$ exe!utive !o%%ittee is !#ar$e &it# t#e responsi(ilit. o- seein$ to it t#at t#eNational Sports5 2sso!iations are -or%e an or$aniAe &it#in six %ont#s -ro% an a-ter t#epassa$e o- t#is 2!t"

Se!tion ; o- '"D" 0, si%ilarl. proviesB

SE6" ;"National Sports Associations.H 2ppli!ation -or a!!reitation or re!o$nition as anational sports asso!iation -or ea!# iniviual sport in t#e '#ilippines s#all (e -ile &it# t#eDepart%ent to$et#er &it#, a%on$ ot#ers, a !op. o- t#e 6onstitution an 7.H4a&s an a list o-t#e %e%(ers o- t#e propose asso!iation"

T#e Depart%ent s#all $ive t#e re!o$nition applie -or i- it is satis-ie t#at t#e national sportsasso!iation to (e or$aniAe &ill pro%ote t#e o(>e!tives o- t#is De!ree an #as su(stantiall.!o%plie &it# t#e rules an re$ulations o- t#e Depart%entB Provided,T#at t#e Depart%ent%a. &it#ra& a!!reitation or re!o$nition -or violation o- t#is De!ree an su!# rules anre$ulations -or%ulate (. it"

T#e Depart%ent s#all supervise t#e national sports asso!iationB Provided, T#at t#e latter s#all#ave ex!lusive te!#ni!al !ontrol over t#e evelop%ent an pro%otion o- t#e parti!ular sport-or i!# t#e. are or$aniAe"

6learl. t#e a(ove !ite provisions re=uire t#at (e-ore an entit. %a. (e !onsiere as anational sports asso!iation, su!# entit. %ust (e re!o$niAe (. t#e a!!reitin$ or$aniAation,t#e '#ilippine 2%ateur 2t#leti! Feeration uner R"2" 313:, an t#e Depart%ent o- out# anSports Develop%ent uner '"D" 0" T#is -a!t o- re!o$nition, #o&ever, +enri a#n -aile tosu(stantiate" In atte%ptin$ to prove t#e >urii!al existen!e o- t#e Feeration, +enri a#n


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atta!#e to #is %otion -or re!onsieration (e-ore t#e trial !ourt a !op. o- t#e !onstitution an(.Hla&s o- t#e '#ilippine Foot(all Feeration" n-ortunatel., t#e sa%e oes not prove t#atsai Feeration #as inee (een re!o$niAe an a!!reite (. eit#er t#e '#ilippine 2%ateur

2t#leti! Feeration or t#e Depart%ent o- out# an Sports Develop%ent" 2!!orin$l., &e rulet#at t#e '#ilippine Foot(all Feeration is not a national sports asso!iation &it#in t#e purvie&o- t#e a-ore%entione la&s an oes not #ave !orporate existen!e o- its o&n"

T#us (ein$ sai, it -ollo&s t#at private responent +enr. a#n s#oul (e #el lia(le -ort#e unpai o(li$ations o- t#e unin!orporate '#ilippine Foot(all Feeration" It is a settleprin!ipal in !orporation la& t#at an. person a!tin$ or purportin$ to a!t on (e#al- o- a!orporation i!# #as no vali existen!e assu%es su!# privile$es an (e!o%es personall.lia(le -or !ontra!t entere into or -or ot#er a!ts per-or%e as su!# a$ent"/1 2s presient o-t#e Feeration, +enri a#n is presu%e to #ave no&n a(out t#e !orporate existen!e or nonHexisten!e o- t#e Feeration" @e !annot su(s!ri(e to t#e position taen (. t#e appellate !ourtt#at even assu%in$ t#at t#e Feeration &as e-e!tivel. in!orporate, t#e petitioner !annoten. t#e !orporate existen!e o- t#e Feeration (e!ause it #a !ontra!te an ealt &it# t#eFeeration in su!# a %anner as to re!o$niAe an in e--e!t a%it its existen!e"/1: T#eo!trine o- !orporation (. estoppel is %istaenl. applie (. t#e responent !ourt to t#e

petitioner" T#e appli!ation o- t#e o!trine applies to a t#ir part. onl. en #e tries to es!apelia(ilit. on a !ontra!t -ro% i!# #e #as (ene-ite on t#e irrelevant $roun o- e-e!tivein!orporation"/1 In t#e !ase at (ar, t#e petitioner is not tr.in$ to es!ape lia(ilit. -ro% t#e!ontra!t (ut rat#er is t#e one !lai%in$ -ro% t#e !ontra!t"

ERE!ORE, t#e e!ision appeale -ro% is REVERSED an SET 2SIDE" T#ee!ision o- t#e Re$ional Trial 6ourt o- ?anila, 7ran!# 3:, in 6ivil 6ase No" 90H:3:9: is#ere(. REINST2TED"

SO OR$ERE$.

Davide, r., !.., "!hair#an$, Puno, Pardo, an %nares&Santiago, ., !on!ur"


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T+IRD DIVISION[G.R. No. 1'())*. No+eber ', 1999]

LI- TONG LI-, petitioner, vs. PILIPPINE !ISING GEAR IN$USTRIES, INC.,

respondent.

$ E C I S I O N

PANGANI#AN, J.%

2 partners#ip %a. (e ee%e to exist a%on$ parties o a$ree to (orro& %one. topursue a (usiness an to ivie t#e pro-its or losses t#at %a. arise t#ere-ro%, even i- it iss#o&n t#at t#e. #ave not !ontri(ute an. !apital o- t#eir o&n to a C!o%%on -un"C T#eir!ontri(ution %a. (e in t#e -or% o- !reit or inustr., not ne!essaril. !as# or -ixe assets"7ein$ partners, t#e. are all lia(le -or e(ts in!urre (. or on (e#al- o- t#e partners#ip" T#e

lia(ilit. -or a !ontra!t entere into on (e#al- o- an unin!orporate asso!iation or ostensi(le!orporation %a. lie in a person o %a. not #ave ire!tl. transa!te on its (e#al-, (ut reape(ene-its -ro% t#at !ontra!t"

Te C/e

In t#e 'etition -or Revie& on !ertiorari(e-ore us, 4i% Ton$ 4i% assails t#e Nove%(er


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i" 2!!rue interest o- ';3,


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Te !/ct

On (e#al- o- CO!ean Kuest Fis#in$ 6orporation,C 2ntonio 6#ua an 'eter ao entereinto a 6ontra!t ate Fe(ruar. ;, 1990, -or t#e pur!#ase o- -is#in$ nets o- various siAes -ro%t#e '#ilippine Fis#in$ ear Inustries, In!" )#erein responent*" T#e. !lai%e t#at t#e. &ere

en$a$e in a (usiness venture &it# 'etitioner 4i% Ton$ 4i%, o #o&ever &as not asi$nator. to t#e a$ree%ent" T#e total pri!e o- t#e nets a%ounte to ':3


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2ntonio 6#ua 13 'eter ao"/11

T#e trial !ourt note t#at t#e 6o%pro%ise 2$ree%ent &as silent as to t#e nature o- t#eiro(li$ations, (ut t#at >oint lia(ilit. !oul (e presu%e -ro% t#e e=ual istri(ution o- t#e pro-itan loss"/1


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In ar$uin$ t#at #e s#oul not (e #el lia(le -or t#e e=uip%ent pur!#ase -ro%responent, petitioner !ontroverts t#e 62 -inin$ t#at a partners#ip existe (et&een #i%,'eter ao an 2ntonio 6#ua" +e asserts t#at t#e 62 (ase its -inin$ on t#e 6o%pro%ise

2$ree%ent alone" Furt#er%ore, #e is!lai%s an. ire!t parti!ipation in t#e pur!#ase o- t#enets, alle$in$ t#at t#e ne$otiations &ere !onu!te (. 6#ua an ao onl., an t#at #e #asnot even %et t#e representatives o- t#e responent !o%pan." 'etitioner -urt#er ar$ues t#at

#e &as a lessor, not a partner, o- 6#ua an ao, -or t#e C6ontra!t o- 4easeC ate Fe(ruar. 1,1990, s#o&e t#at #e #a %erel. lease to t#e t&o t#e %ain asset o- t#e purportepartners#ip HH t#e -is#in$ (oat F( )ourdes. T#e lease &as -or six %ont#s, &it# a %ont#l.rental o- '3;,:00 plus


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2ntonio 6#ua an 'eter ao a$ainst 4i% Ton$ 4i% -or )a* e!laration o- nullit. o- !o%%er!ialo!u%ents )(* re-or%ation o- !ontra!ts )!* e!laration o- o&ners#ip o- -is#in$ (oats )*in>un!tion an )e* a%a$es"

)9* T#at t#e !ase &as a%i!a(l. settle t#rou$# a 6o%pro%ise 2$ree%ent exe!ute (et&eent#e partiesHliti$ants t#e ter%s o- i!# are alrea. enu%erate a(ove"

Fro% t#e -a!tual -inin$s o- (ot# lo&er !ourts, it is !lear t#at 6#ua, ao an 4i% #ae!ie to en$a$e in a -is#in$ (usiness, i!# t#e. starte (. (u.in$ (oats &ort# '3"3:%illion, -inan!e (. a loan se!ure -ro% Jesus 4i% o &as petitionerMs (rot#er" In t#eir6o%pro%ise 2$ree%ent, t#e. su(se=uentl. reveale t#eir intention to pa. t#e loan &it# t#epro!ees o- t#e sale o- t#e (oats, an to ivie e=uall. a%on$ t#e% t#e ex!ess or loss"T#ese (oats, t#e pur!#ase an t#e repair o- i!# &ere -inan!e &it# (orro&e %one., -elluner t#e ter% !o%%on -un uner 2rti!le 1;;" T#e !ontri(ution to su!# -un nee not (e!as# or -ixe assets it !oul (e an intan$i(le lie !reit or inustr." T#at t#e parties a$reet#at an. loss or pro-it -ro% t#e sale an operation o- t#e (oats &oul (e ivie e=uall.a%on$ t#e% also s#o&s t#at t#e. #a inee -or%e a partners#ip"

?oreover, it is !lear t#at t#e partners#ip extene not onl. to t#e pur!#ase o- t#e (oat,(ut also to t#at o- t#e nets an t#e -loats" T#e -is#in$ nets an t#e -loats, (ot# essential to-is#in$, &ere o(viousl. a!=uire in -urt#eran!e o- t#eir (usiness" It &oul #ave (eenin!on!eiva(le -or 4i% to involve #i%sel- so %u!# in (u.in$ t#e (oat (ut not in t#e a!=uisitiono- t#e a-oresai e=uip%ent, &it#out i!# t#e (usiness !oul not #ave pro!eee"

iven t#e pre!ein$ -a!ts, it is !lear t#at t#ere &as, a%on$ petitioner, 6#ua an ao, apartners#ip en$a$e in t#e -is#in$ (usiness" T#e. pur!#ase t#e (oats, i!# !onstitutet#e %ain assets o- t#e partners#ip, an t#e. a$ree t#at t#e pro!ees -ro% t#e sales anoperations t#ereo- &oul (e ivie a%on$ t#e%"

@e stress t#at uner Rule :, a petition -or revie& lie t#e present !ase s#oul involveonl. =uestions o- la&" T#us, t#e -ore$oin$ -a!tual -inin$s o- t#e RT6 an t#e 62 are (inin$on t#is 6ourt, a(sent an. !o$ent proo- t#at t#e present a!tion is e%(ra!e (. one o- t#eex!eptions to t#e rule"/1 In assailin$ t#e -a!tual -inin$s o- t#e t&o lo&er !ourts, petitionere--e!tivel. $oes (e.on t#e (ouns o- a petition -or revie& uner Rule :"

Compromise Agreement Not the ole !asis of Partnership

'etitioner ar$ues t#at t#e appellate !ourtMs sole (asis -or assu%in$ t#e existen!e o- apartners#ip &as t#e 6o%pro%ise 2$ree%ent" +e also !lai%s t#at t#e settle%ent &as entereinto onl. to en t#e ispute a%on$ t#e%, (ut not to a>ui!ate t#eir preexistin$ ri$#ts an

o(li$ations" +is ar$u%ents are (aseless" he Agree#ent was -ut an e#-odi#ent of therelationship etant a#ong the parties prior to its eecution.

2 proper a>ui!ation o- !lai%antsM ri$#ts %anates t#at !ourts %ust revie& ant#orou$#l. appraise all relevant -a!ts" 7ot# lo&er !ourts #ave one so an #ave -oun,!orre!tl., a preexistin$ partners#ip a%on$ t#e parties" In i%pl.in$ t#at t#e lo&er !ourts #avee!ie on t#e (asis o- one pie!e o- o!u%ent alone, petitioner -ails to appre!iate t#at t#e 62an t#e RT6 elve into t#e #istor. o- t#e o!u%ent an explore all t#e possi(le!onse=uential !o%(inations in #ar%on. &it# la&, lo$i! an -airness" Veril., t#e t&o lo&er


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!ourtsM -a!tual -inin$s %entione a(ove nulli-ie petitionerMs ar$u%ent t#at t#e existen!e o- apartners#ip &as (ase onl. on t#e 6o%pro%ise 2$ree%ent"

Petitioner "as a Partner, Not a Lessor

@e are not !onvin!e (. petitionerMs ar$u%ent t#at #e &as %erel. t#e lessor o- t#e

(oats to 6#ua an ao, not a partner in t#e -is#in$ venture" +is ar$u%ent alle$el. -inssupport in t#e 6ontra!t o- 4ease an t#e re$istration papers s#o&in$ t#at #e &as t#e o&ner o-t#e (oats, in!luin$ F( )ourdesere t#e nets &ere -oun"

+is alle$ation e-ies lo$i!" In e--e!t, #e &oul lie t#is 6ourt to (elieve t#at #e!onsente to t#e sale o- his own(oats to pa. a e(t o- !hua and %ao, &it# t#e ex!ess o- t#epro!ees to (e ivie a%on$ the three of the#" No lessor &oul o at petitioner i"Inee, #is !onsent to t#e sale prove t#at t#ere &as a preexistin$ partners#ip a%on$ allt#ree"

Veril., as -oun (. t#e lo&er !ourts, petitioner entere into a (usiness a$ree%ent &it#6#ua an ao, in i!# e(ts &ere unertaen in orer to -inan!e t#e a!=uisition an t#eup$rain$ o- t#e vessels i!# &oul (e use in t#eir -is#in$ (usiness" T#e sale o- t#e (oats,as &ell as t#e ivision a%on$ t#e t#ree o- t#e (alan!e re%ainin$ a-ter t#e pa.%ent o- t#eirloans, proves (e.on !avil t#at F( )ourdes, t#ou$# re$istere in #is na%e, &as not #is o&npropert. (ut an asset o- t#e partners#ip" It is not un!o%%on to re$ister t#e propertiesa!=uire -ro% a loan in t#e na%e o- t#e person t#e lener trusts, o in t#is !ase is t#epetitioner #i%sel-" 2-ter all, #e is t#e (rot#er o- t#e !reitor, Jesus 4i%"

@e stress t#at it is unreasona(le Q inee, it is a(sur HH -or petitioner to sell #is propert.to pa. a e(t #e i not in!ur, i- t#e relations#ip a%on$ t#e t#ree o- t#e% &as %erel. t#at o-lessorHlessee, instea o- partners"

Corporation by Estoppel

'etitioner ar$ues t#at uner t#e o!trine o- !orporation (. estoppel, lia(ilit. !an (ei%pute onl. to 6#ua an ao, an not to #i%" 2$ain, &e isa$ree"

Se!tion


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an t#en, (rus#in$ asie as oll. trivial an ine!isive all i%per-e!tions o- -or% ante!#ni!alities o- pro!eure, ass t#at >usti!e (e one upon t#e %erits" 4a&suits, unlie uels,are not to (e &on (. a rapierMs t#rust" Te!#ni!alit., en it eserts its proper o--i!e as an aito >usti!e an (e!o%es its $reat #inran!e an !#ie- ene%., eserves s!ant !onsieration-ro% !ourts" T#ere s#oul (e no veste ri$#ts in te!#ni!alities"

Tr7 Ie% #alidity of Attachment

Finall., petitioner !lai%s t#at t#e @rit o- 2tta!#%ent &as i%properl. issue a$ainst t#enets" @e a$ree &it# t#e 6ourt o- 2ppeals t#at t#is issue is no& %oot an a!ae%i!" 2spreviousl. is!usse, F( )ourdes &as an asset o- t#e partners#ip an t#at it &as pla!e int#e na%e o- petitioner, onl. to assure pa.%ent o- t#e e(t #e an #is partners o&e" T#enets an t#e -loats &ere spe!i-i!all. %anu-a!ture an tailorH%ae a!!orin$ to t#eir o&nesi$n, an &ere (ou$#t an use in t#e -is#in$ venture t#e. a$ree upon" +en!e, t#eissuan!e o- t#e @rit to assure t#e pa.%ent o- t#e pri!e stipulate in t#e invoi!es is proper"7esies, (. spe!i-i! a$ree%ent, o&ners#ip o- t#e nets re%aine &it# Responent '#ilippine

Fis#in$ ear, until -ull pa.%ent t#ereo-"ERE!ORE, t#e 'etition is D2N32D an t#e assaile De!ision AFF34+2D" 6osts

a$ainst petitioner"

SO OR$ERE$.

+elo, "!hair#an$, Purisi#a, an5onzaga&4e*es, ., !on!ur.1itug, ., 'ls" see !on!urrin$ opinion"
http://sc.judiciary.gov.ph/jurisprudence/1999/nov99/136448_vitug.htmhttp://sc.judiciary.gov.ph/jurisprudence/1999/nov99/136448_vitug.htm


16/39

SE6OND DIVISION[G.R. No. 128221. 5e 19, 199:]

RE;NAL$O -. LOurisi!tion, !lai%in$ t#at>urisi!tion &as lo$e &it# t#e Se!urities an Ex!#an$e 6o%%ission )SE6*" T#e ?6T6enie t#e %otion on Fe(ruar. 9, 199"/e!t tot#e >urisi!tion o- t#e SE6, an orere t#e ?6T6 to is%iss 6ivil 6ase No" 1


17/39

)urisi!tion to #ear an e!ie !ases involvin$B

)a* Devi!es or s!#e%es e%plo.e (. or an. a!ts o- t#e (oar o- ire!tors, (usinessasso!iates, its o--i!ers or partners, a%ountin$ to -rau an %isrepresentation i!# %a. (eetri%ental to t#e interest o- t#e pu(li! anor o- t#e sto!#olers, partners, %e%(ers o-asso!iations or or$aniAations re$istere &it# t#e 6o%%ission"

)(* 6ontroversies arisin$ out o- intra!orporate or partners#ip relations, (et&een an a%on$sto!#olers, %e%(ers or asso!iates (et&een an. or all o- t#e% an t#e !orporation,

partners#ip or asso!iation o- i!# t#e. are sto!#olers, %e%(ers, or asso!iates,respe!tivel. an (et&een su!# !orporation, partners#ip or asso!iation an t#e state inso-aras it !on!erns t#eir iniviual -ran!#ise or ri$#t to exist as su!# entit."

)!* 6ontroversies in t#e ele!tion or appoint%ent o- ire!tors, trustees, o--i!ers or %ana$ers o-su!# !orporations, partners#ips or asso!iations"

)* 'etitions o- !orporations, partners#ips or asso!iations to (e e!lare in t#e state o-suspension o- pa.%ents in !ases ere t#e !orporation, partners#ip or asso!iationpossesses su--i!ient propert. to !over all its e(ts (ut -oresees t#e i%possi(ilit. o- %eetin$t#e% en t#e. respe!t ver. -all ue or in !ases ere t#e !orporation, partners#ip or

asso!iation #as no su--i!ient assets to !over its lia(ilities, (ut is uner t#e %ana$e%ent o- aRe#a(ilitation Re!eiver or ?ana$e%ent 6o%%ittee !reate pursuant to t#is De!ree"C

T#e $rant o- >urisi!tion to t#e SE6 %ust (e vie&e in t#e li$#t o- its nature an -un!tionuner t#e la&"/8 T#is >urisi!tion is eter%ine (. a !on!urren!e o- t&o ele%entsB )1* t#estatus or relations#ip o- t#e parties an )e!t o-t#eir !ontrovers."/9

T#e -irst ele%ent re=uires t#at t#e !ontrovers. %ust arise out o- intra!orporate orpartners#ip relations (et&een an a%on$ sto!#olers, %e%(ers, or asso!iates (et&eenan. or all o- t#e% an t#e !orporation, partners#ip or asso!iation o- i!# t#e. are

sto!#olers, %e%(ers or asso!iates, respe!tivel. an (et&een su!# !orporation,partners#ip or asso!iation an t#e State in so -ar as it !on!erns t#eir iniviual -ran!#ises"/10T#e se!on ele%ent re=uires t#at t#e ispute a%on$ t#e parties (e intrinsi!all. !onne!te&it# t#e re$ulation o- t#e !orporation, partners#ip or asso!iation or eal &it# t#e internala--airs o- t#e !orporation, partners#ip or asso!iation"/11 2-ter all, t#e prin!ipal -un!tion o- t#eSE6 is t#e supervision an !ontrol o- !orporations, partners#ips an asso!iations &it# t#een in vie& t#at invest%ents in t#ese entities %a. (e en!oura$e an prote!te, an t#eira!tivities pursue -or t#e pro%otion o- e!ono%i! evelop%ent"/1


18/39

responent" T#e !ontrovers. (et&een t#e% arose out o- t#eir plan to !onsoliate t#eirrespe!tive >eepne. rivers5 an operators5 asso!iations into a sin$le !o%%on asso!iation"T#is uni-ie asso!iation &as, #o&ever, still a proposal" It #a not (een approve (. t#e SE6,neit#er #a its o--i!ers an %e%(ers su(%itte t#eir arti!les o- !onsoliation in a!!oran!e&it# Se!tions ;8 an ;9 o- t#e 6orporation 6oe" 6onsoliation (e!o%es e--e!tive not upon%ere a$ree%ent o- t#e %e%(ers (ut onl. upon issuan!e o- t#e !erti-i!ate o- !onsoliation (.

t#e SE6"/13 @#en t#e SE6, upon pro!essin$ an exa%inin$ t#e arti!les o- !onsoliation, issatis-ie t#at t#e !onsoliation o- t#e !orporations is not in!onsistent &it# t#e provisions o- t#e6orporation 6oe an existin$ la&s, it issues a !erti-i!ate o- !onsoliation i!# %aes t#ereor$aniAation o--i!ial"/1 T#e ne& !onsoliate !orporation !o%es into existen!e an t#e!onstituent !orporations issolve an !ease to exist"/1:

T#e 2?2JD2 an S2?2JOD2 to i!# petitioner an private responent (elon$ areul. re$istere &it# t#e SE6, (ut t#ese asso!iations are t&o separate entities" T#e ispute(et&een petitioner an private responent is not &it#in t#e 2?2JD2 nor t#e S2?2JOD2" Itis (et&een %e%(ers o- separate an istin!t asso!iations" 'etitioner an private responent#ave no intra!orporate relation %u!# less o t#e. #ave an intra!orporate ispute" T#e SE6t#ere-ore #as no >urisi!tion over t#e !o%plaint"

T#e o!trine o- !orporation (. estoppel/1 avan!e (. private responent !annotoverrie >urisi!tional re=uire%ents" Jurisi!tion is -ixe (. la& an is not su(>e!t to t#ea$ree%ent o- t#e parties"/1; It !annot (e a!=uire t#rou$# or &aive, enlar$e or i%inis#e(., an. a!t or o%ission o- t#e parties, neit#er !an it (e !on-erre (. t#e a!=uies!en!e o- t#e!ourt"/18

6orporation (. estoppel is -oune on prin!iples o- e=uit. an is esi$ne to preventin>usti!e an un-airness"/19 It applies en persons assu%e to -or% a !orporation anexer!ise !orporate -un!tions an enter into (usiness relations &it# t#ir persons" @#eret#ere is no t#ir person involve an t#e !on-li!t arises onl. a%on$ t#ose assu%in$ t#e -or%o- a !orporation, o t#ere-ore no& t#at it #as not (een re$istere, t#ere is no !orporation(. estoppel"/


19/39

Repu(li! o- t#e '#ilippinesSUPRE-E COURT?anilaT+IRD DIVISION

G.R. No. 101*9:. -/rc 8, 199'.

46E? OF T+E '+I4I''INES, IN6", petitioner, vs" 6ORT OF 2''E24S, 46E? OF2'2RRI, 46E? OF 62722N, 46E? OF 62?242NI2N, IN6", 46E? OF4244O, IN6", 46E? OF T2O, IN6", 7+I 46E?, 6ENTR24 46E? OF62T2ND2NES, 46E? OF SOT+ERN '+I4I''INES, 46E? OF E2STERN?IND2N2O, IN6" an @ESTERN '2N2SIN2N 46E?, IN6", responents"

Kuisu%(in$, Torres Evan$elista 4a& O--i!es an 2%(rosio 'ailla -or petitioner"

2ntonio ?" Nu.les an 'urun$an, 6#ato, 6#ato, Tarriela Tan 4a& O--i!es -or responents"

Froilan Sio(al -or @estern 'an$asinan 4.!eu%"

S4427S

1" 6OR'OR2TION 42@ 6OR'OR2TE N2?ES REISTR2TION OF 'RO'OSED N2?E@+I6+ IS IDENTI624 OR 6ONFSIN4 SI?I42R TO T+2T OF 2N EGISTIN6OR'OR2TION, 'RO+I7ITED 6ONFSION 2ND DE6E'TION EFFE6TIVE4'RE64DED 7 T+E 2''ENDIN OF EOR2'+I6 N2?ES TO T+E @ORD C46E?C" T#e 2rti!les o- In!orporation o- a !orporation %ust, a%on$ ot#er t#in$s, set out t#e na%eo- t#e !orporation" Se!tion 18 o- t#e 6orporation 6oe esta(lis#es a restri!tive rule inso-ar as!orporate na%es are !on!erneB CSe!tion 18" 6orporate na%e" No !orporate na%e %a.(e allo&e (. t#e Se!urities an Ex!#an$e 6o%%ission i- t#e propose na%e is ienti!al ore!eptivel. or !on-usin$l. si%ilar to t#at o- an. existin$ !orporation or to an. ot#er na%ealrea. prote!te (. la& or is patentl. e!eptive, !on-usin$ or !ontrar. to existin$ la&s" @#ena !#an$e in t#e !orporate na%e is approve, t#e 6o%%ission s#all issue an a%ene!erti-i!ate o- in!orporation uner t#e a%ene na%e"C T#e poli!. unerl.in$ t#e pro#i(ition inSe!tion 18 a$ainst t#e re$istration o- a !orporate na%e i!# is Cienti!al or e!eptivel. or!on-usin$l. si%ilarC to t#at o- an. existin$ !orporation or i!# is Cpatentl. e!eptiveC orCpatentl. !on-usin$C or C!ontrar. to existin$ la&s,C is t#e avoian!e o- -rau upon t#e pu(li!i!# &oul #ave o!!asion to eal &it# t#e entit. !on!erne, t#e evasion o- le$al o(li$ationsan uties, an t#e reu!tion o- i--i!ulties o- a%inistration an supervision over!orporations" @e o not !onsier t#at t#e !orporate na%es o- private responent institutionsare Cienti!al &it#, or e!eptivel. or !on-usin$l. si%ilarC to t#at o- t#e petitioner institution"True enou$#, t#e !orporate na%es o- private responent entities all !arr. t#e &or C4.!eu%C(ut !on-usion an e!eption are e--e!tivel. pre!lue (. t#e appenin$ o- $eo$rap#i! na%esto t#e &or C4.!eu%"C T#us, &e o not (elieve t#at t#e C4.!eu% o- 2parriC !an (e %istaen (.t#e $eneral pu(li! -or t#e 4.!eu% o- t#e '#ilippines, or t#at t#e C4.!eu% o- 6a%alaniu$anC&oul (e !on-use &it# t#e 4.!eu% o- t#e '#ilippines"


20/39

alt#ou$# ori$inall. a $eneri!, #as (e!o%e appropria(le (. petitioner to t#e ex!lusion o- ot#erinstitutions lie private responents #erein" T#e o!trine o- se!onar. %eanin$ ori$inate int#e -iel o- trae%ar la&" Its appli!ation #as, #o&ever, (een extene to !orporate na%essine t#e ri$#t to use a !orporate na%e to t#e ex!lusion o- ot#ers is (ase upon t#e sa%eprin!iple i!# unerlies t#e ri$#t to use a parti!ular trae%ar or traena%e" In '#ilippineNut Inustr., In!" v" Stanar 7rans, In!", t#e o!trine o- se!onar. %eanin$ &as ela(orate

in t#e -ollo&in$ ter%sB C " " " a &or or p#rase ori$inall. in!apa(le o- ex!lusive appropriation&it# re-eren!e to an arti!le on t#e %aret, (e!ause $eo$rap#i!all. or ot#er&ise es!riptive,%i$#t nevert#eless #ave (een use so lon$ an so ex!lusivel. (. one prou!er &it#re-eren!e to #is arti!le t#at, in t#at trae an to t#at (ran!# o- t#e pur!#asin$ pu(li!, t#e &oror p#rase #as !o%e to %ean t#at t#e arti!le &as #is prou!t"C T#e =uestion i!# arises,t#ere-ore, is et#er or not t#e use (. petitioner o- C4.!eu%C in its !orporate na%e #as (een-or su!# len$t# o- ti%e an &it# su!# ex!lusivit. as to #ave (e!o%e asso!iate or ienti-ie&it# t#e petitioner institution in t#e %in o- t#e $eneral pu(li! )or at least t#at portion o- t#e$eneral pu(li! i!# #as to o &it# s!#ools*" T#e 6ourt o- 2ppeals re!o$niAe t#is issue anans&ere it in t#e ne$ativeB Cner t#e o!trine o- se!onar. %eanin$, a &or or p#raseori$inall. in!apa(le o- ex!lusive appropriation &it# re-eren!e to an arti!le in t#e %aret,(e!ause $eo$rap#i!al or ot#er&ise es!riptive %i$#t nevert#eless #ave (een use so lon$an so ex!lusivel. (. one prou!er &it# re-eren!e to t#is arti!le t#at, in t#at trae an to t#at$roup o- t#e pur!#asin$ pu(li!, t#e &or or p#rase #as !o%e to %ean t#at t#e arti!le &as #isprou!e )2na 2n$ vs" Tori(io Teooro, ; '#il" :*" T#is !ir!u%stan!e #as (een re-erre to ast#e istin!tiveness into i!# t#e na%e or p#rase #as evolve t#rou$# t#e su(stantial anex!lusive use o- t#e sa%e -or a !onsiera(le perio o- ti%e" " " " No evien!e &as everpresente in t#e #earin$ (e-ore t#e 6o%%ission i!# su--i!ientl. prove t#at t#e &or54.!eu%5 #as inee a!=uire se!onar. %eanin$ in -avor o- t#e appellant" I- t#ere &as an. o-t#is in, t#e sa%e ten to prove onl. t#at t#e appellant #a (een usin$ t#e ispute &or -ora lon$ perio o- ti%e" " " " In ot#er &ors, ile t#e appellant %a. #ave prove t#at it #a(een usin$ t#e &or 54.!eu%5 -or a lon$ perio o- ti%e, t#is -a!t alone i not a%ount to %eant#at t#e sai &or #a a!=uire se!onar. %eanin$ in its -avor (e!ause t#e appellant -aileto prove t#at it #a (een usin$ t#e sa%e &or all (. itsel- to t#e ex!lusion o- ot#ers" ?ore so,t#ere &as no evien!e presente to prove t#at !on-usion &ill surel. arise i- t#e sa%e &or&ere to (e use (. ot#er eu!ational institutions" 6onse=uentl., t#e alle$ations o- t#eappellant in its -irst t&o assi$ne errors %ust ne!essaril. -ail"C @e a$ree &it# t#e 6ourt o-

2ppeals" T#e nu%(er alone o- t#e private responents in t#e !ase at (ar su$$ests stron$l.t#at petitioner5s use o- t#e &or C4.!eu%C #as not (een attene &it# t#e ex!lusivit. essential-or appli!a(ilit. o- t#e o!trine o- se!onar. %eanin$" 'etitioner5s use o- t#e &or C4.!eu%C&as not ex!lusive (ut &as in trut# s#are &it# t#e @estern 'an$asinan 4.!eu% an a littlelater &it# ot#er private responent institutions i!# re$istere &it# t#e SE6 usin$ C4.!eu%Cas part o- t#eir !orporation na%es" T#ere %a. &ell (e ot#er s!#ools usin$ 4.!eu% or 4i!eo int#eir na%es, (ut not re$istere &it# t#e SE6 (e!ause t#e. #ave not aopte t#e !orporate-or% o- or$aniAation"

3" ID" ID" ?ST 7E EV242TED IN T+EIR ENTIRET TO DETER?INE @+ET+ER T+E2RE 6ONFSIN4 OR DE6E'TIVE4 SI?I42R TO 2NOT+ER 6OR'OR2TE ENTIT5SN2?E" petitioner institution is not entitle to a le$all. en-or!ea(le ex!lusive ri$#t to use t#e&or C4.!eu%C in its !orporate na%e an t#at ot#er institutions %a. use C4.!eu%C as part o-t#eir !orporate na%es" To eter%ine et#er a $iven !orporate na%e is Cienti!alC orC!on-usin$l. or e!eptivel. si%ilarC &it# anot#er entit.5s !orporate na%e, it is not enou$# toas!ertain t#e presen!e o- C4.!eu%C or C4i!eoC in (ot# na%es" One %ust evaluate !orporate


21/39

na%es in t#eir entiret. an en t#e na%e o- petitioner is >uxtapose &it# t#e na%es o-private responents, t#e. are not reasona(l. re$are as Cienti!alC or C!on-usin$l. ore!eptivel. si%ilarC &it# ea!# ot#er"

D E 6 I S I O N

FE4I6I2NO, J pB

'etitioner is an eu!ational institution ul. re$istere &it# t#e Se!urities an Ex!#an$e6o%%ission )CSE6C*" @#en it -irst re$istere &it# t#e SE6 on


22/39


23/39

7e-ore t#is 6ourt, petitioner asserts t#at t#e 6ourt o- 2ppeals !o%%itte t#e -ollo&in$ errorsB

1" T#e 6ourt o- 2ppeals erre in #olin$ t#at t#e Resolution o- t#e Supre%e 6ourt in "R" No"4H:9: i not !onstitute stare e!isis as to appl. to t#is !ase an in not #olin$ t#at saiResolution (oun su(se=uent eter%inations on t#e ri$#t to ex!lusive use o- t#e &or4.!eu%"


24/39

Et.%olo$i!all., t#e &or C4.!eu%C is t#e 4atin &or -or t#e ree l.eion i!# in turnre-erre to a lo!alit. on t#e river Ilissius in an!ient 2t#ens C!o%prisin$ an en!losure ei!ateto 2pollo an aorne &it# -ountains an (uilin$s ere!te (. 'isistratus, 'eri!les an4.!ur$us -re=uente (. t#e .out# -or exer!ise an (. t#e p#ilosop#er 2ristotle an #is-ollo&ers -or tea!#in$"C 8 In ti%e, t#e &or C4.!eu%C (e!a%e asso!iate &it# s!#ools anot#er institutions proviin$ pu(li! le!tures an !on!erts an pu(li! is!ussions" T#us toa.,

t#e &or C4.!eu%C $enerall. re-ers to a s!#ool or an institution o- learnin$" @#ile t#e 4atin&or Cl.!eu%C #as (een in!orporate into t#e En$lis# lan$ua$e, t#e &or is also -oun inSpanis# )li!eo* an in Fren!# )l.!ee*" 2s t#e 6ourt o- 2ppeals note in its De!ision, Ro%an6at#oli! s!#ools -re=uentl. use t#e ter% e"$", C4i!eo e ?anila,C C4i!eo e 7alenoC )in7aleno, ?as(ate*, C4i!eo e ?as(ate,C C4i!eo e 2l(a."C 9 C4.!eu%C is in -a!t as $eneri! in!#ara!ter as t#e &or Cuniversit."C In t#e na%e o- t#e petitioner, C4.!eu%C appears to (e asu(stitute -or Cuniversit.C in ot#er pla!es, #o&ever, C4.!eu%,C or C4i!eoC or C4.!eeC -re=uentl.enotes a se!onar. s!#ool or a !olle$e" It %a. (e )t#ou$# t#is is a =uestion o- -a!t i!# &enee not resolve* t#at t#e use o- t#e &or C4.!eu%C %a. not .et (e as &iesprea as t#e useo- Cuniversit.,C (ut it is !lear t#at a not in!onsiera(le nu%(er o- eu!ational institutions #aveaopte C4.!eu%C or C4i!eoC as part o- t#eir !orporate na%es" Sin!e C4.!eu%C or C4i!eoCenotes a s!#ool or institution o- learnin$, it is not unnatural to use t#is &or to esi$nate anentit. i!# is or$aniAe an operatin$ as an eu!ational institution"

It is !lai%e, #o&ever, (. petitioner t#at t#e &or C4.!eu%C #as a!=uire a se!onar.%eanin$ in relation to petitioner &it# t#e result t#at t#at &or, alt#ou$# ori$inall. a $eneri!,#as (e!o%e appropria(le (. petitioner to t#e ex!lusion o- ot#er institutions lie privateresponents #erein"

T#e o!trine o- se!onar. %eanin$ ori$inate in t#e -iel o- trae%ar la&" Its appli!ation#as, #o&ever, (een extene to !orporate na%es sine t#e ri$#t to use a !orporate na%e tot#e ex!lusion o- ot#ers is (ase upon t#e sa%e prin!iple i!# unerlies t#e ri$#t to use aparti!ular trae%ar or traena%e" 10 In '#ilippine Nut Inustr., In!" v" Stanar 7rans, In!",11 t#e o!trine o- se!onar. %eanin$ &as ela(orate in t#e -ollo&in$ ter%sB

C " " " a &or or p#rase ori$inall. in!apa(le o- ex!lusive appropriation &it# re-eren!e to anarti!le on t#e %aret, (e!ause $eo$rap#i!all. or ot#er&ise es!riptive, %i$#t nevert#eless#ave (een use so lon$ an so ex!lusivel. (. one prou!er &it# re-eren!e to #is arti!le t#at,in t#at trae an to t#at (ran!# o- t#e pur!#asin$ pu(li!, t#e &or or p#rase #as !o%e to%ean t#at t#e arti!le &as #is prou!t"C 1uxtapose &it#t#e na%es o- private responents, t#e. are not reasona(l. re$are as Cienti!alC orC!on-usin$l. or e!eptivel. si%ilarC &it# ea!# ot#er"

@+EREFORE, t#e petitioner #avin$ -aile to s#o& an. reversi(le error on t#e part o- t#epu(li! responent 6ourt o- 2ppeals, t#e 'etition -or Revie& is DENIED -or la! o- %erit, ant#e De!ision o- t#e 6ourt o- 2ppeals ate


27/39

SE6OND DIVISION[G.R. No. 1221:). October ', 2002]

IN$USTRIAL RE!RACTORIES CORPORATION O! TE PILIPPINES, petitioner, vs.

COURT O! APPEALS, SECURITIES AN$ EXCANGE CO--ISSION /57RE!RACTORIES CORPORATION O! TE PILIPPINES,respondents.

$ E C I S I O N

AUSTRIA?-ARTINE


28/39


29/39

alrea. attaine -inalit. an t#e SE6Ms -inin$s o- -a!t, en supporte (. su(stantialevien!e, is -inal"/1;

Nevert#eless, to set t#e %atters at rest, &e s#all elve into t#e ot#er issues pose (.petitioner"

'etitionerMs ar$u%ents, su(stantiall., are as -ollo&sB )1* >urisi!tion is veste &it# t#e

re$ular !ourts as t#e present !ase is not one o- t#e instan!es provie in '"D" 90urisi!tion over t#e !ase is utterl. %.opi!" T#e>urisi!tion o- t#e SE6 is not %erel. !on-ine to t#e a>ui!ative -un!tions provie in Se!tion: o- '"D" 90


30/39


31/39

t#e !ase o- Ang )aanib sa *glesia ng +ios ay )risto -es$s, -..). sa !ansangPilipinas, *nc. vs. *glesia ng +ios ay Cristo Jes$s, -aligi at $hay ng )atotohanan,petitionerMs appropriation o- responent5s !orporate na%e !annot -in >usti-i!ation uner t#e$eneri! &or rule" /3; 2 !ontrar. rulin$ &oul en!oura$e ot#er !orporations to aoptver(ati% an re$ister an existin$ an prote!te !orporate na%e, to t#e etri%ent o- t#epu(li!"/38

Finall., &e -in t#e a&ar o- ':0,000"00 as attorne.5s -ees to (e -air an reasona(le"Article /( of the Civil Codeallo&s t#e a&ar o- su!# -ees en its !lai%ant is !o%pelleto liti$ate &it# t#ir persons or to in!ur expenses to prote!t its >ust an vali !lai%" In t#is!ase, espite its unertain$ to !#an$e its !orporate na%e in !ase anot#er -ir% #as a!=uirea prior ri$#t to use su!# na%e,/39 it re-use to o so, t#us !o%pellin$ responent to uner$oliti$ation an in!ur expenses to prote!t its !orporate na%e"

ERE!ORE, t#e instant petition -or revie& on certiorariis #ere(. D2N32D-or la! o-%erit"

6osts a$ainst petitioner"

SO OR$ERE$.

(ellosillo, Acting !.., "!hair#an$, uisu#-ing, an!alleo, Sr.


32/39

4epu-lic of the Philippines0P1E2E C3014+anilaEN 72N6

G.R. No. L?289* 5e 29, 1980

C. ARNOL$ ALL /57 #RA$LE; P. ALL,petitioners, vs"E$-UN$O S. PICCIO, 76e o

te Cort o !rt I5t/5ce o Le=te, !RE$ #RON, E--A #RON, IPOLITACAPUCIONG, 5 c/@/ct= / rece+er o te !/r E/ter5 Lber /57 Coerc/4Co., I5c.,responents"

!laro +. 4ecto for petitioners.4a#on Dio/no and ose u$e re-use to a!!ept t#e o--er an to is!#ar$e t#e


33/39


34/39

issolution1(ut t#at =uestion oes not a--e!t t#e !ourt5s >urisi!tion, an is a %atter -ore!ision (. t#e >u$e, su(>e!t to revie& on appeal" @#!# (rin$s us to one prin!ipal reason. t#is petition %a. not prosper, na%el.B t#e petitioners #ave t#eir re%e. (. appealin$ t#eorer o- issolution at t#e proper ti%e"

T#ere is a se!onar. issue in !onne!tion &it# t#e appoint%ent o- a re!eiver" 7ut it %ust (e

a%itte t#at re!eivers#ip is proper in pro!eein$s -or issolution o- a !o%pan. or!orporation, an it &as no error to re>e!t t#e !ounterH(on, t#e !ourt #avin$ e!lare t#eissolution" 2s to t#e a%ount o- t#e (on to (e e%ane o- t#e re!eiver, %u!# epensupon t#e is!retion o- t#e trial !ourt, i!# in t#is instan!e &e o not (elieve #as (een !learl.a(use"

udg#entB T#e petition &ill, t#ere-ore, (e is%isse, &it# !osts" T#e preli%inar. in>un!tion#ereto-ore issue &ill (e issolve"

>zaeta, Pa-lo, uason, +onte#a*or, and 4e*es, .,!on!ur"


35/39

4epu-lic of the Philippines0P1E2E C3014+anilaSE6OND DIVISION

G.R. No. 180)1( 4= 21, 200(

SEVENT $A; A$VENTIST CON!ERENCE CURC O! SOUTERN PILIPPINES,

INC., /57Bor re@ree5te7 b= -ANASSE C. ARRANGUE


36/39

" 4ot No" 8aron an @est (.

FeliA 6osio xxx"

T#e onation &as alle$el. a!!epte (. one 4i(erato Ra.os, an eler o- t#e Sevent# Da.2ventist 6#ur!#, on (e#al- o- t#e onee"

T&ent.Hone .ears later, #o&ever, on Fe(ruar.


37/39

Donation is an a!t o- li(eralit. ere(. a person isposes $ratuitousl. o- a t#in$ or ri$#t in-avor o- another persono a!!epts it" T#e onation !oul not #ave (een %ae in -avor o- anentit. .et inexistent at t#e ti%e it &as %ae" Nor !oul it #ave (een a!!epte as t#ere &as .etno one to a!!ept it"

T#e ee o- onation &as not in -avor o- an. in-or%al $roup o- SD2 %e%(ers (ut a suppose

S'?HSD2 7a.u$an )t#e lo!al !#ur!#* i!#, at t#e ti%e, #a neit#er >urii!al personalit. nor!apa!it. to a!!ept su!# $i-t"

De!larin$ t#e%selves a de facto!orporation, petitioners alle$e t#at t#e. s#oul (ene-it -ro%t#e onation"

7ut t#ere are strin$ent re=uire%ents (e-ore one !an =uali-. as a de facto !orporationB

)a* t#e existen!e o- a vali la& uner i!# it %a. (e in!orporate

)(* an atte%pt in $oo -ait# to in!orporate an

)!* assu%ption o- !orporate po&ers"10

@#ile t#ere existe t#e ol 6orporation 4a& )2!t 1:9*,11a la& uner i!# S'?HSD27a.u$an !oul #ave (een or$aniAe, t#ere is no proo- t#at t#ere &as an atte%pt toin!orporate at t#at ti%e"

T#e -ilin$ o- arti!les o- in!orporation an t#e issuan!e o- t#e !erti-i!ate o- in!orporation are

essential -or t#e existen!e o- a de facto !orporation"1usti!e to t#e parties an o- esta(lis#in$ a $eneral assuran!e o- se!urit. in (usiness

ealin$ &it# !orporations"C1;

enerall., t#e o!trine exists to prote!t t#e pu(li! ealin$ &it# suppose !orporate entities,


38/39

not to -avor t#e e-e!tive or nonHexistent !orporation"18

In vie& o- t#e -ore$oin$, petitionersM ar$u%ents an!#ore on t#eir suppose de facto status#ol no &ater" @e are !onvin!e t#at t#ere &as no onation to petitioners or t#eir supposepree!essorHinHinterest"

On t#e ot#er #an, t#ere is su--i!ient (asis to a--ir% t#e title o- SD2HNE??" T#e -a!tual-inin$s o- t#e trial !ourt in t#is re$ar &ere not !onvin!in$l. ispute" T#is 6ourt is not a trier

o- -a!ts" Onl. =uestions o- la& are t#e proper su(>e!t o- a petition -or revie& on !ertiorari" 19

Sustainin$ t#e valiit. o- responentsM title as &ell as t#eir ri$#t o- o&ners#ip over t#epropert., t#e trial !ourt stateB

/@#en Felix 6osio &as s#o&n t#e 2(solute Dee o- Sale urin$ t#e #earin$ xxx #ea!no&le$e t#at t#e sa%e &as #is xxx (ut t#at it &as not #is intention to sell t#e!ontroverte propert. (e!ause #e #a previousl. onate t#e sa%e lot to t#e Sout#'#ilippine nion ?ission o- SD2 6#ur!# o- 7a.u$anHEsperanAa" 6osio avou!#e t#at #a it

(een #is inten%ent to sell, #e &oul not #ave ispose o- it -or a %ere '


39/39

T#e exe!ution o- /a pu(li! instru%ent xxx trans-ers t#e o&ners#ip -ro% t#e venor to t#e

venee o %a. t#erea-ter exer!ise t#e ri$#ts o- an o&ner over t#e sa%e

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