SLAClL L18CLLuM CC8C8A1lCn vS Au1CCC8 C8Cu (nachura 2008)

Doctr|ne
lL ls seLLled LhaL a corporaLlon has a personallLy separaLe and dlsLlncL from lLs lndlvldual sLockholders
or members and ls noL affecLed by Lhe personal rlghLs obllgaLlons and LransacLlons of Lhe laLLer as
such corporaLlon may noL be held llable for Lhe obllgaLlons of Lhe persons composlng lL and nelLher
can lLs sLockholders be held llable for lLs obllgaLlon

IAC1S
eLlLloner Seaoll eLroleum CorporaLlon purchased one unlL of 8C8Lx 200 LC LxcavaLor Model 1994
from respondenL AuLocorp Croup 1he sales agreemenL was embodled ln Lhe vehlcle Sales lnvolce
no A0209 and vehlcle Sales ConflrmaLlon no 238 Seaoll lssued 12 checks as paymenL Lherefor
however 10 checks were noL honored by Lhe bank slnce Seaoll requesLed LhaL paymenL be sLopped
AuLocorp flled a complalnL for recovery of personal properLy wlLh damages and replevln ln Lhe
8eglonal 1rlal CourL
Seaoll clalms LhaL Seaoll and AuLocorp were only uLlllzed as condulLs Lo seLLle Lhe obllgaLlon of one
forelgn enLlLy named unlllne Asla ln favor of anoLher forelgn enLlLy locus olnL lnLernaLlonal
lncorporaLed 1he real LransacLlon ls LhaL unlllne Lhrough 8odrlguez (a sLockholder and dlrecLor of
AoLucorp and owner of unlllne) charLered Mv Asla roperLy under a Lease urchase AgreemenL
from locus for $31371171 an obllgaLlon LhaL unllllne was noL able Lo pay ln lleu of paymenL
unlllne lnsLead agreed Lo convey 4 plckup Lrucks ln favor of locus (Lhe excavaLor was allegedly parL
of one of Lhese vehlcles) 1hls was Lo be pald by checks lssued by Seaoll as requesLed by 8odrlguez
buL whlch ln Lurn were Lo be funded by checks lssued by unlllne 8uL 8odrlguez lssued a sLop
paymenL order whlch consLralned Seaoll Lo sLop paylng
(noL sLaLed ln Lhe case buL on some daLe Seaoll flled a 1hlrd parLy clalm agalnsL 8odrlguez)
eLlLloner Seaoll ln sum alleges LhaL Lhe wrlLLen agreemenL falled Lo express Lhe Lrue lnLenL and
agreemenL of Lhe parLles
81C ruled ln favor of AuLocorp sLaLlng LhaL Lhe obllgaLlon Lo pay AuLocorp Lhe remalnder of Lhe
purchase prlce of Lhe excavaLor solely devolves on Seaoll and lL dlsmlssed Lhe LhlrdparLy complalnL
agalnsL aul 8odrlguez reasonlng LhaL he ls noL a parLy Lo Lhe sale of Lhe excavaLor Lherefore he
could noL be held llable
CA afflrmed 81C declslon
ISSUL
(1) WCn parol evldence rule ls appllcable ln Lhls case
(2) WCn 81C/CA was correcL ln dlsmlsslng Lhe 1hlrdparLy complalnL agalnsL 8odrlguez

nCLDING and kat|o
(1) no AlLhough parol evldence ls admlsslble Lo explaln Lhe meanlng of a conLracL lL cannoL serve Lhe
purpose of lncorporaLlng lnLo Lhe conLracL addlLlonal conLemporaneous condlLlons whlch are noL
menLloned aL all ln Lhe wrlLlng unless Lhere has been fraud or mlsLake Lvldence of a prlor or
conLemporaneous verbal agreemenL ls generally noL admlsslble Lo vary conLradlcL or defeaL Lhe
operaLlon of a valld conLracL
1he vehlcle Sales lnvolce ls Lhe besL evldence of Lhe LransacLlon 1he Lerms of Lhe sub[ecL sales
lnvolce are clear 1hey show LhaL AuLocorp sold Lo Seaoll one unlL 8obex 200 LC LxcavaLor pald for by
checks lssued by one 8omeo valera
(2) ?es As polnLed ouL by Lhe CA 8odrlguez ls a person separaLe and lndependenL from AuLocorp
WhaLever obllgaLlons 8odrlguez conLracLed cannoL be aLLrlbuLed Lo AuLocorp and vlce versa ln facL
Lhe obllgaLlon LhaL peLlLloner proffers as lLs defense under Lhe Lease urchase AgreemenL was noL
even lncurred by 8odrlguez or by AuLocorp buL by unlllne under Lhls Lease urchase AgreemenL lL ls
unlllne as lessee/purchaser and noL 8odrlguez LhaL lncurred Lhe debL Lo locus olnL
1he LransacLlon under Lhe vehlcle Sales lnvolce ls separaLe and dlsLlncL from LhaL under Lhe Lease
urchase AgreemenL ln Lhe former lL ls Seaoll LhaL owes AuLocorp whlle ln Lhe laLLer unlllne
lncurred obllgaLlons Lo locus
CourL has recognlzed lnsLances when Lhe corporaLlons separaLe personallLy may be dlsregarded
Powever we have also held LhaL Lhe same may only be done ln cases where Lhe corporaLe vehlcle ls
belng used Lo defeaL publlc convenlence [usLlfy wrong proLecL fraud or defend crlme 1he
wrongdolng musL be clearly and convlnclngly esLabllshed and cannoL be presumed
Moreover 8odrlguez as sLockholder and dlrecLor of unlllne cannoL be held personally llable for Lhe
debLs of Lhe corporaLlon whlch has a separaLe legal personallLy of lLs own lL ls seLLled LhaL a
corporaLlon has a personallLy separaLe and dlsLlncL from lLs lndlvldual sLockholders or members and
ls noL affecLed by Lhe personal rlghLs obllgaLlons and LransacLlons of Lhe laLLer as such corporaLlon
may noL be held llable for Lhe obllgaLlons of Lhe persons composlng lL and nelLher can lLs
sLockholders be held llable for lLs obllgaLlon