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FIRST DIVISION SAN JUAN STRUCTURAL AND STEEL FABRICATORS, INC., petitioner, vs.

COURT OF APPEALS, MOTORICH SALES CORPORATION, NENITA LEE GRUENBERG, ACL DEVELOPMENT CORP. an !NM REALT" AND DEVELOPMENT CORP., respon ents. G.R. No. 129459 Septem e! 29, 199" S#LLABUS 1. CIVIL LA$% CONTRACTS% SALE% TRANSFER OR SALE OF CORPORATE PROPERT# B# T&E CORPORATION'S TREASURER $IT&OUT AN# AUT&ORIT# FRO( T&E BOARD OF DIRECTORS IS NULL AND VOID. # In $%ita%&', a (orporation )a' a(t on&' t*ro$+* its %oar o, ire(tors or, -*en a$t*ori.e eit*er %' its %'&a-s or %' its %oar reso&$tion, t*ro$+* its o,,i(ers or a+ents in t*e nor)a& (o$rse o, %$siness. T*e +enera& prin(ip&es o, a+en(' +overn t*e re&ation %et-een t*e (orporation an its o,,i(ers or a+ents, s$%/e(t to t*e arti(&es o, in(orporation, %'&a-s, or re&evant provisions o, &a-. T*$s, t*is Co$rt *as *e& t*at 0 1a (orporate o,,i(er or a+ent )a' represent an %in t*e (orporation in transa(tions -it* t*ir persons to t*e e2tent t*at t*e a$t*orit' to o so *as %een (on,erre $pon *i), an t*is in(&$ es po-ers -*i(* *ave %een intentiona&&' (on,erre , an a&so s$(* po-ers as, in t*e $s$a& (o$rse o, t*e parti($&ar %$siness, are in(i enta& to, or )a' %e i)p&ie ,ro), t*e po-ers intentiona&&' (on,erre , po-ers a e %' ($sto) an $sa+e, as $s$a&&' pertainin+ to t*e parti($&ar o,,i(er or a+ent, an s$(* apparent po-ers as t*e (orporation *as (a$se persons ea&in+ -it* t*e o,,i(er or a+ent to %e&ieve t*at it *as (on,erre .1 0 3$rt*er)ore, t*e Co$rt *as a&so re(o+ni.e t*e r$&e t*at 0persons ea&in+ -it* an ass$)e a+ent, -*et*er t*e ass$)e a+en(' %e a +enera& or spe(ia& one, are %o$n at t*eir peri&, i, t*e' -o$& *o& t*e prin(ipa& &ia%&e, to as(ertain not on&' t*e ,a(t o, a+en(' %$t a&so t*e nat$re an e2tent o, a$t*orit', an in (ase eit*er is (ontrovert, t*e %$r en o, proo, is $pon t*e) to esta%&is* it 4Harr' 5ee&er vs. Ro ri+$e., 6 P*i&. 789.0 Un&ess $&' a$t*ori.e , a treas$rer, -*ose po-ers are &i)ite , (annot %in t*e (orporation in a sa&e o, its assets. In t*e (ase at %ar, Respon ent Motori(* (ate+ori(a&&' enies t*at it ever a$t*ori.e Nenita Gr$en%er+, its treas$rer, to se&& t*e s$%/e(t par(e& o, &an . Conse:$ent&', petitioner *a t*e %$r en o, provin+ t*at Nenita Gr$en%er+ -as in ,a(t a$t*ori.e to represent an %in Motori(* in t*e transa(tion. Petitioner ,ai&e to is(*ar+e t*is %$r en. Its o,,er o, evi en(e %e,ore t*e tria& (o$rt (ontaine no proo, o, s$(* a$t*orit'. It *as not s*o-n an' provision o, sai respon ent1s arti(&es o, in(orporation, %'&a-s or %oar reso&$tion to prove t*at Nenita Gr$en%er+ possesse s$(* po-er. T*at Nenita Gr$en%er+ is t*e treas$rer o, Motori(* oes not ,ree petitioner ,ro) t*e responsi%i&it' o, as(ertainin+ t*e e2tent o, *er a$t*orit' to represent t*e (orporation. Petitioner (annot ass$)e t*at s*e, %' virt$e o, *er position, -as a$t*ori.e to se&& t*e propert' o, t*e (orporation. Se&&in+ is o%vio$s&' ,orei+n to a (orporate treas$rer1s ,$n(tion, -*i(* +enera&&' *as %een es(ri%e as 0to re(eive an ;eep t*e ,$n s o, t*e (orporation an to is%$rse t*e) in a((or an(e -it* t*e a$t*orit' +iven *i) %' t*e %oar or t*e proper&' a$t*ori.e o,,i(ers.0 Neit*er

-as s$(* rea& estate sa&e s*o-n to %e a nor)a& %$siness a(tivit' o, Motori(*. T*e pri)ar' p$rpose o, Motori(* is )ar;etin+, istri%$tion, e2port an i)port in re&ation to a +enera& )er(*an isin+ %$siness. Un)ista;a%&', its treas$rer is not (&oa;e -it* a(t$a& or apparent a$t*orit' to %$' or se&& rea& propert', an a(tivit' -*i(* ,a&&s -a' %e'on t*e s(ope o, *er +enera& a$t*orit'. 2. ID.% ID.% A CONTRACT T&AT IS CONSIDERED INE)ISTENT AND VOID FRO( T&E BEGINNING IS NOT SUSCEPTIBLE TO RATIFICATION .# As a +enera& r$&e, t*e a(ts o, (orporate o,,i(ers -it*in t*e s(ope o, t*eir a$t*orit' are %in in+ on t*e (orporation. B$t -*en t*ese o,,i(ers e2(ee t*eir a$t*orit', t*eir a(tions 0(annot %in t*e (orporation, $n&ess it *as rati,ie s$(* a(ts or is estoppe ,ro) is(&ai)in+ t*e).0 In t*is (ase, t*ere is a (&ear a%sen(e o, proo, t*at Motori(* ever a$t*ori.e Nenita Gr$en%er+, or )a e it appear to an' t*ir person t*at s*e *a t*e a$t*orit', to se&& its &an or to re(eive t*e earnest )one'. Neit*er -as t*ere an' proo, t*at Motori(* rati,ie , e2press&' or i)p&ie &', t*e (ontra(t. Petitioner rests its ar+$)ent on t*e re(eipt -*i(*, *o-ever, oes not prove t*e ,a(t o, rati,i(ation. T*e o($)ent is a *an -ritten one, not a (orporate re(eipt, an it %ears on&' Nenita Gr$en%er+1s si+nat$re. Certain&', t*is o($)ent a&one oes not prove t*at *er a(ts -ere a$t*ori.e or rati,ie %' Motori(*. Arti(&e 7<7= o, t*e Civi& Co e &ists t*e re:$isites o, a va&i an per,e(te (ontra(t> 0479 (onsent o, t*e (ontra(tin+ parties? 4@9 o%/e(t (ertain -*i(* is t*e s$%/e(t )atter o, t*e (ontra(t? 4<9 (a$se o, t*e o%&i+ation -*i(* is esta%&is*e .0 As ,o$n %' t*e tria& (o$rt an a,,ir)e %' t*e Co$rt o, Appea&s, t*ere is no evi en(e t*at Gr$en%er+ -as a$t*ori.e to enter into t*e (ontra(t o, sa&e, or t*at t*e sai (ontra(t -as rati,ie %' Motori(*. T*is ,a(t$a& ,in in+ o, t*e t-o (o$rts is %in in+ on t*is Co$rt. As t*e (onsent o, t*e se&&er -as not o%taine , no (ontra(t to %in t*e o%&i+or -as per,e(te . T*ere,ore, t*ere (an %e no va&i (ontra(t o, sa&e %et-een petitioner an Motori(*. Be(a$se Motori(* *a never +iven a -ritten a$t*ori.ation to Respon ent Gr$en%er+ to se&& its par(e& o, &an , -e *o& t*at t*e 3e%r$ar' 76, 78=8 A+ree)ent entere into %' t*e &atter -it* petitioner is voi $n er Arti(&e 7=A6 o, t*e Civi& Co e. Bein+ ine2istent an voi ,ro) t*e %e+innin+, sai (ontra(t (annot %e rati,ie . *. CO((ERCIAL LA$% CORPORATION CODE% PIERCING T&E CORPORATE VEIL IS NOT JUSTIFIED IN CASE AT BAR . # Be stress t*at t*e (orporate ,i(tion s*o$& %e set asi e -*en it %e(o)es a s*ie& a+ainst &ia%i&it' ,or ,ra$ , i&&e+a&it' or ine:$it' (o))itte on t*ir persons. T*e :$estion o, pier(in+ t*e vei& o, (orporate ,i(tion is essentia&&', t*en, )atter o, proo,. In t*e present (ase, *o-ever, t*e Co$rts ,in s no reason to pier(e t*e (orporate vei& o, Respon ent Motori(*. Petitioner $tter&' ,ai&e to esta%&is* t*at sai (orporation -as ,or)e , or t*at it is operate , ,or t*e p$rpose o, s*ie& in+ an' a&&e+e ,ra$ $&ent or i&&e+a& a(tivities o, its o,,i(ers or sto(;*o& ers? or t*at t*e sai vei& -as $se to (on(ea& ,ra$ , i&&e+a&it' or ine:$it' at t*e e2pense o, t*ir persons &i;e petitioner. 4. ID.% ID.% PRIVATE RESPONDENT CORPORATION IS NOT A CLOSE CORPORATION AS DEFINED UNDER SECTION 9+ OF T&E CORPORATION CODE. # T*e arti(&es o, in(orporation o, Motori(* Sa&es Corporation oes not (ontain an' provision statin+ t*at 479 t*e n$)%er o, sto(;*o& ers s*a&& not e2(ee @C, or 4@9 a

pree)ption o, s*ares is restri(te in ,avor o, an' sto(;*o& er or o, t*e (orporation, or 4<9 &istin+ its sto(;s in an' sto(; e2(*an+e or )a;in+ a p$%&i( o,,erin+ o, s$(* sto(;s is pro*i%ite . 3ro) its arti(&es, it is (&ear t*at Respon ent Motori(* is not a (&ose (orporation. Motori(* oes not %e(o)e one eit*er, /$st %e(a$se Spo$ses Re'na& o an Nenita Gr$en%er+ o-ne 88.=DDE o, its s$%s(ri%e (apita& sto(;. T*e 0F)Gere o-ners*ip %' a sin+&e sto(;*o& er or %' anot*er (orporation o, a&& or near&' a&& o, t*e (apita& sto(; o, a (orporation is not o, itse&, s$,,i(ient +ro$n ,or isre+ar in+ t*e separate (orporate persona&ities.0 So, too, a narro- istri%$tion o, o-ners*ip oes not, %' itse&,, )a;e a (&ose (orporation. 5. CIVIL LA$, DA(AGES% A$ARD OF ATTORNE#'S FEES IS NOT JUSTIFIED IN CASE AT BAR% PETITIONER $AS A VICTI( OF ITS O$N OFFICERS NEGLIGENCE IN ENTERING INTO A CONTRACT $IT& AN UNAUT&ORI,ED OFFICER OF ANOT&ER CORPORATION . # Be s$stain t*e ,in in+s o, %ot* t*e tria& an t*e appe&&ate (o$rts t*at t*e ,ore+oin+ a&&e+ations &a(; ,a(t$a& %ases. Hen(e, an a-ar o, a)a+es or attorne'1s ,ees (annot %e /$sti,ie . T*e a)o$nt pai as 0earnest )one'0 -as not proven to *ave re o$n e to t*e %ene,it o, Respon ent Motori(*. Petitioner (&ai)s t*at sai a)o$nt -as eposite to t*e a((o$nt o, Respon ent Motori(*, %e(a$se 0it -as eposite -it* t*e a((o$nt o, Aren Co))er(ia& (Ho Motori(* Sa&es Corporation.0 Respon ent Gr$en%er+, *o-ever, isp$tes t*e a&&e+ations o, petitioner. In an' event, Gr$en%er+ o,,ere to ret$rn t*e a)o$nt to petitioner 0. . . sin(e t*e sa&e i not p$s* t*ro$+*.0 Moreover, -e note t*at An res Co is not a neop*'te in t*e -or& o, (orporate %$siness. He *as %een t*e presi ent o, Petitioner Corporation ,or )ore t*an ten 'ears an *as a&so serve as (*ie, e2e($tive o, t-o ot*er (orporate entities. Co (annot ,ei+n i+noran(e o, t*e s(ope o, t*e a$t*orit' o, a (orporate treas$rer s$(* as Gr$en%er+. Neit*er (an *e %e o%&ivio$s to *is $t' to as(ertain t*e s(ope o, Gr$en%er+1s a$t*ori.ation to enter into a (ontra(t to se&& a par(e& o, &an %e&on+in+ to Motori(*. In ee , petitioner1s (&ai) o, ,ra$ an %a ,ait* is $ns$%stantiate an ,ai&s to pers$a e t*e Co$rt. In $%ita%&', petitioner appears to %e t*e vi(ti) o, its o-n o,,i(er1s ne+&i+en(e in enterin+ into a (ontra(t -it* an pa'in+ an $na$t*ori.e o,,i(er o, anot*er (orporation. DECISION PANGANIBAN, J pMa' a (orporate treas$rer, %' *erse&, an -it*o$t an' a$t*ori.ation ,ro) t*e %oar o, ire(tors, va&i &' se&& a par(e& o, &an o-ne %' t*e (orporationI Ma' t*e vei& o, (orporate ,i(tion %e pier(e on t*e )ere +ro$n t*at a&)ost a&& o, t*e s*ares o, sto(; o, t*e (orporation are o-ne %' sai treas$rer an *er *$s%an I T.e C/0e T*ese :$estions are ans-ere in t*e ne+ative %' t*is Co$rt in reso&vin+ t*e Petition ,or Revie- on Certiorari %e,ore $s, assai&in+ t*e Mar(* 7=, 788A De(ision o, t*e Co$rt o, Appea&s in CA GR CV No. 6D=C7 -*i(*, in t$rn, )o i,ie t*e !$&' 7=, 7886 De(ision o, t*e Re+iona& Tria& Co$rt o, Ma;ati, Metro Mani&a, Bran(* D< < in Civi& Case No. =8J

<K77. T*e RTC is)isse %ot* t*e Co)p&aint an t*e Co$nter(&ai) ,i&e %' t*e parties. On t*e ot*er *an , t*e Co$rt o, Appea&s r$&e > 0BHERE3ORE, pre)ises (onsi ere , t*e appea&e e(ision is A33IRMED BITH MODI3ICATION or erin+ e,en antJappe&&ee Nenita Lee Gr$en%er+ to RE3UND or ret$rn to p&ainti,,Jappe&&ant t*e o-npa')ent o, P7CC,CCC.CC -*i(* s*e re(eive ,ro) p&ainti,,Jappe&&ant. T*ere is no prono$n(e)ent as to (osts.0 T*e petition a&so (*a&&en+es t*e !$ne 7C, 788A CA Reso&$tion en'in+ re(onsi eration. T.e F/1t0 T*e ,a(ts as ,o$n %' t*e Co$rt o, Appea&s are as ,o&&o-s> 0P&ainti,,Jappe&&ant San !$an Str$(t$ra& an Stee& 3a%ri(ators, In(.1s a)en e (o)p&aint a&&e+e t*at on 76 3e%r$ar' 78=8, p&ainti,,Jappe&&ant entere into an a+ree)ent -it* e,en antJappe&&ee Motori(* Sa&es Corporation ,or t*e trans,er to it o, a par(e& o, &an i enti,ie as Lot <C, B&o(; 7 o, t*e A(ropo&is Greens S$% ivision &o(ate in t*e Distri(t o, M$rp*', L$e.on Cit', Metro Mani&a, (ontainin+ an area o, 3o$r H$n re 3o$rteen 46769 s:$are )eters, (overe %' TCT No. 4<D@8C89 @=AD> t*at as stip$&ate in t*e A+ree)ent o, 76 3e%r$ar' 78=8, p&ainti,,Jappe&&ant pai t*e o-npa')ent in t*e s$) o, One H$n re T*o$san 4P7CC,CCC.CC9 Pesos, t*e %a&an(e to %e pai on or %e,ore Mar(* @, 78=8? t*at on Mar(* 7, 78=8, Mr. An res T. Co, presi ent o, p&ainti,,Jappe&&ant (orporation, -rote a &etter to e,en antJappe&&ee Motori(* Sa&es Corporation re:$estin+ ,or a (o)p$tation o, t*e %a&an(e to %e pai , t*at sai &etter -as (o$rse t*ro$+* e,en antJappe&&ee1s %ro;er, Lin a A $(a, -*o -rote t*e (o)p$tation o, t*e %a&an(e> t*at on Mar(* @, 78=8, p&ainti,,Jappe&&ant -as rea ' -it* t*e a)o$nt (orrespon in+ to t*e %a&an(e, (overe %' Metro%an; Cas*ier1s C*e(; No. CC6@@<, pa'a%&e to e,en antJ appe&&ee Motori(* Sa&es Corporation? t*at p&ainti,,Jappe&&ant an e,en antJappe&&ee Motori(* Sa&es Corporation -ere s$ppose to )eet in t*e o,,i(e o, p&ainti,,Jappe&&ant %$t e,en antJappe&&ee1s treas$rer, Nenita Lee Gr$en%er+, i not appear? t*at e,en antJ appe&&ee Motori(* Sa&es Corporation espite repeate e)an s an in $tter isre+ar o, its (o))it)ents *a re,$se to e2e($te t*e Trans,er o, Ri+*tsHDee o, Assi+n)ent -*i(* is ne(essar' to trans,er t*e (erti,i(ate o, tit&e? t*at e,en ant ACL Deve&op)ent Corp. is i)p&ea e as a ne(essar' part' sin(e Trans,er Certi,i(ate o, Tit&e No. 4<D@8C89 @=AD is sti&& in t*e na)e o, sai e,en ant? -*i&e e,en ant !NM Rea&t' M Deve&op)ent Corp. is &i;e-ise i)p&ea e as a ne(essar' part' in vie- o, t*e ,a(t t*at it is t*e trans,eror o, ri+*t in ,avor o, e,en antJappe&&ee Motori(* Sa&es Corporation? t*at on Apri& D, 78=8, e,en ant ACL Deve&op)ent Corporation an Motori(* Sa&es Corporation entere into a Dee o, A%so&$te Sa&e -*ere%' t*e ,or)er trans,erre to t*e &atter t*e s$%/e(t propert'? t*at %' reason o, sai trans,er, t*e Re+istr' o, Dee s o, L$e.on Cit' iss$e a ne- tit&e in t*e na)e o, Motori(* Sa&es Corporation, represente %' e,en antJappe&&ee Nenita Lee Gr$en%er+ an Re'na& o L Gr$en%er+, $n er Trans,er Certi,i(ate o, Tit&e No. <KA7? t*at as a res$&t o, e,en antsJappe&&ees Nenita Lee Gr$en%er+ an Motori(* Sa&es Corporation1s %a ,ait* in re,$sin+ to e2e($te a ,or)a& Trans,er o, Ri+*tsHDee o, Assi+n)ent, p&ainti,,Jappe&&ant s$,,ere )ora& an no)ina& a)a+es -*i(* )a' %e

assesse a+ainst e,en antsJappe&&ees in t*e s$) o, 3ive H$n re T*o$san 4KCC,CCC.CC9 Pesos? t*at as a res$&t o, e,en antsJappe&&ees Nenita Lee Gr$en%er+ an Motori(* Sa&es Corporation1s $n/$sti,ie an $n-arrante ,ai&$re to e2e($te t*e re:$ire Trans,er o, Ri+*tsHDee o, Assi+n)ent or ,or)a& ee o, sa&e in ,avor o, p&ainti,,Jappe&&ant, e,en antsJappe&&ees s*o$& %e assesse e2e)p&ar' a)a+es in t*e s$) o, One H$n re T*o$san 4P7CC,CCC.CC9 Pesos> t*at %' reason o, e,en antsJappe&&ees1 %a ,ait* in re,$sin+ to e2e($te a Trans,er o, Ri+*tsHDee o, Assi+n)ent in ,avor o, p&ainti,,J appe&&ant, t*e &atter &ost t*e opport$nit' to (onstr$(t a resi entia& %$i& in+ in t*e s$) o, One H$n re T*o$san 4P7CC,CCC.CC9 Pesos? an t*at as a (onse:$en(e o, e,en antsJ appe&&ees Nenita Lee Gr$en%er+ an Motori(* Sa&es Corporation1s %a ,ait* in re,$sin+ to e2e($te a ee o, sa&e in ,avor o, p&ainti,,Jappe&&ant, it *as %een (onstraine to o%tain t*e servi(es o, (o$nse& at an a+ree ,ee o, One H$n re T*o$san 4P7CC,CCC.CC9 Pesos p&$s appearan(e ,ee ,or ever' appearan(e in (o$rt *earin+s. 0In its ans-er, e,en antsJappe&&ees Motori(* Sa&es Corporation an Nenita Lee Gr$en%er+ interpose as a,,ir)ative e,ense t*at t*e Presi ent an C*air)an o, Motori(* i not si+n t*e a+ree)ent a verte to in par. < o, t*e a)en e (o)p&aint? t*at Mrs. Gr$en%er+1s si+nat$re on t*e a+ree)ent 4re,> par. < o, A)en e Co)p&aint9 is ina e:$ate to %in Motori(*. T*e ot*er si+nat$re, t*at o, Mr. Re'na& o Gr$en%er+, Presi ent an C*air)an o, Motori(*, is re:$ire > t*at p&ainti,, ;ne- t*is ,ro) t*e ver' %e+innin+ as it -as presente a (op' o, t*e Trans,er o, Ri+*ts 4Anne2 B o, a)en e (o)p&aint9 at t*e ti)e t*e A+ree)ent 4Anne2 B o, a)en e (o)p&aint9 -as si+ne ? t*at p&ainti,,Jappe&&ant itse&, ra,te t*e A+ree)ent an insiste t*at Mrs. Gr$en%er+ a((ept t*e P7CC,CCC.CC as earnest )one'? t*at +rantin+, -it*o$t a )ittin+, t*e en,or(ea%i&it' o, t*e a+ree)ent, p&ainti,,Jappe&&ant nonet*e&ess ,ai&e to pa' in &e+a& ten er -it*in t*e stip$&ate perio 4$p to Mar(* @, 78=89? t*at it -as t*e $n erstan in+ %et-een Mrs. Gr$en%er+ an p&ainti,,Jappe&&ant t*at t*e Trans,er o, Ri+*tsHDee o, Assi+n)ent -i&& %e si+ne on&' $pon re(eipt o, (as* pa')ent? t*$s t*e' a+ree t*at i, t*e pa')ent %e in (*e(;, t*e' -i&& )eet at a %an; esi+nate %' p&ainti,,Jappe&&ant -*ere t*e' -i&& en(as* t*e (*e(; an si+n t*e Trans,er o, Ri+*tsHDee . Ho-ever, p&ainti,,Jappe&&ant in,or)e Mrs. Gr$en%er+ o, t*e a&&e+e avai&a%i&it' o, t*e (*e(;, %' p*one, on&' a,ter %an;in+ *o$rs. 0On t*e %asis o, t*e evi en(e, t*e (o$rt a :$o ren ere t*e /$ +)ent appea&e ,ro)F,G is)issin+ p&ainti,,Jappe&&ant1s (o)p&aint, r$&in+ t*at> 1T*e iss$e to %e reso&ve is> -*et*er p&ainti,, *a t*e ri+*t to (o)pe& e,en ants to e2e($te a ee o, a%so&$te sa&e in a((or an(e -it* t*e a+ree)ent o, 3e%r$ar' 76, 78=8> an i, so, -*et*er p&ainti,, is entit&e to a)a+es. 1As to t*e ,irst :$estion, t*ere is no evi en(e to s*o- t*at e,en ant Nenita Lee Gr$en%er+ -as in ee a$t*ori.e %' e,en ant (orporation. Motori(* Sa&es to ispose o, t*at propert' (overe %' T.C.T. No. 4<D@8C89 @=AD. Sin(e t*e propert' is (&ear&' o-ne %' t*e (orporation, Motori(* Sa&es, t*en its isposition s*o$& %e +overne %' t*e re:$ire)ent &ai o-n in Se(. 6C, o, t*e Corporation Co e o, t*e P*i&ippines, to -it> Se(. 6C. Sa&e or ot*er isposition o, assets. S$%/e(t to t*e provisions o, e2istin+ &a-s on i&&e+a& (o)%ination an )onopo&ies, a (orporation )a' %' a )a/orit' vote o, its

as t*e Trans. o. t*e TRANS3EROR is t*e o-ner o.or &a(. 3OUR HUNDRED 3OURTEEN 46769 SLUARE METERS. Barrio Ma)%$n+an. p. P*i&ippine La-s. to %e a$t*ori. a (orporation $&' or+ani. e2(*an+e. se&&. Antipo&o. CO. .e an e2istin+ $n er an %' virt$e o.e an e2istin+ $n er an %' virt$e o. )a e an entere into %' an %et-een> MOTORICH SALES CORPORATION...a&. (overe %' a TRANS3ER O3 RIGHTS %et-een !NM Rea&t' M Dev. p. o$t $n er t*ese (ir($)stan(es. represente *erein %' its Presi ent. 4tsn ate Septe)%er @A. Pio e& Pi&ar. t*e o$tstan in+ (apita& sto(. oes not .en ant Nenita Lee Gr$en%er+ .e %' t*e (orporation to se&& t*e propert' to p&ainti.i(e a ress at KK7C So$t* S$per HiJ -a' (or. *ereina. AJ=? Ro&&o. t*e . -*en a$t*ori. Ma. 78=8 is repro $(e *ere$n er> 0AGREEMENT 5NOB ALL MEN B" THESE PRESENTS> T*is A+ree)ent. 7 o.e %' t*e vote o.en ants1 (o$nter(&ai) is a&so DISMISSED . Metro Mani&a. 788<. M$rp*'.ie %' t*e (orporation. as t*e Trans. . 7887. Corp. -it* prin(ipa& o. *i)se&. t*e Co$rt *ere%' ren ers /$ +)ent DISMISSING t*e (o)p&aint at instan(e . &an i enti..%oar o. L$e.en ant Nenita Lee Gr$en%er+ &ia%&e (onsi erin+ t*at s*e i not in an'-a' )isrepresent *erse&.ter re. More so. &ease. . Ba& era)a St. Metro Mani&a.erre to as t*e TRANS3EROR? # an # SAN !UAN STRUCTURAL M STEEL 3ABRICATORS. 1De.ati. 1In t*e &i+*t o. ANDRES T. p&ainti.erre to as t*e TRANS3EREE.ie as Lot <C B&o(. its propert' an assets in(&$ in+ its +oo -i&& . a)a+es. pp. %asis. T*at> BHEREAS. NENITA LEE GRUENBERG. a par(e& o. =9..eree? . p&e +e or ot*er-ise ispose o. P&ainti. t*e A+ree)ent ate 3e%r$ar' 76. . Ri.i(e a ress at S$)$&on+ Hi+*-a'. *ereina. a (orporation $&' or+ani. Fo-nsG severa& (orporations 4tsn ate A$+$st 7D. )ort+a+e. pp. -it* prin(ipa& o.in s$%stantia& evi en(e to *o& e. t*e ACROPOLIS GREENS SUBDIVISION &o(ate at t*e Distri(t o..on Cit'.e-ise. . t*e Co$rt &i. t*e sto(. ire(tors . <6J<K90 3or (&arit'. BITNESSETH.eror an Motori(* Sa&es Corp. t*e P*i&ippines. represente *erein %' its Treas$rer.es *i) . 1No s$(* vote -as o%taine %' e. (ontainin+ an area o. a&& or s$%stantia&&' a&& o.ter re. )erit.t*at t*e s$ppose transa(tion -as rati. <9 -*i(* )a. 1Re+ar in+ t*e :$estion o.or t*at propose sa&eF?G neit*er -as t*ere evi en(e to s*o. .ore+oin+. t*e &a-s o. .1 4De(ision. o.or &a(..*o& ers representin+ at &east t-o t*ir 4@H<9 o.no-&e +ea%&e on (orporation )atters. s*o$& *ave %een on t*e &oo.

t*e parties *ave a+ree as .or. t*e .e petitioner1s ar+$)ents an a.eror -arrants t*at *e Fsi(G is t*e &a-. 3e%r$ar' 76.ore+oin+ pre)ises.@CC. t*e TRANS3EROR a+rees to e2e($te a TRANS3ER O3 RIGHTSHDEED O3 ASSIGNMENT in . is entit&e to a)a+es.avor o.ai&$re %' t*e Trans.or t*e )ont* o.or an in (onsi eration o. t*is petition %e. T*at $pon . .CCC.eror? an t*at t*e )ont*&' a)orti. petitioner insiste > 07. IN BITNESS BHEREO3. 3e%r$ar'. 78=8. t*e earnest )one' s*a&& %e .$n P7CC. MOTORICH SALES SAN !UAN STRUCTURAL M CORPORATION STEEL 3ABRICATORS TRANS3EROR TRANS3EREE FSGDG FSGDG B'> NENITA LEE GRUENBERG B'> ANDRES T. .eree to pa' t*e %a&an(e on t*e ate spe(i. T*at t*e )ont*&' a)orti. Earnest )one' a)o$ntin+ to ONE HUNDRED THOUSAND PESOS 4P7CC. 3e%r$ar' 78=8 s*a&& %e . -i&& %e pai $pon t*e e2e($tion o. THERE3ORE. P&ainti.NOB.o&&o-s> 7. t*e Trans. Ba&an(e s*a&& %e pa'a%&e on or %e. .ore Mar(* @.or t*e a((o$nt o. t*is a+ree)ent an s*a&& . t*e tota& p$r(*ase pri(e? LLp*i& %. 4%9. t*e a)o$nt re)itte as 0 o-npa')ent0 or 0earnest )one'.CC9 per s:$are )eter? s$%/e(t to t*e . A%so&$te Sa&e in a((or an(e -it* t*e A+ree)ent o.ation .eite in . t*e %a&an(e. -*atsoever nat$re? In (ase o.CC9. Appe&&ant is entit&e to (o)pe& t*e appe&&ees to e2e($te a Dee o.ie on 7. Appea&s e%$n. t*e RTC -it* t*e )o i..i(ation t*at Respon ent Nenita Lee Gr$en%er+ -as or ere to re.o&&o-in+ ter)s> a.CCC to petitioner. t*e Trans.avor o. 78=8? @. t*e TRANS3EREE.0 As state ear&ier.ation startin+ Mar(* @7. t*e Trans. CO Treas$rer Presi ent Si+ne in t*e presen(e o. San !$an. 78=8 s*a&& %e .$&& pa')ent o.or t*e a((o$nt o. t*e Co$rt o. t*e parties *ave *ere$nto set t*eir *an s t*is 76t* a' o. Appea&s. 78=8 at Green*i&&s.eree? T*e trans. Metro Mani&a. t*e a%oveJ es(ri%e propert' an t*at t*ere FareG no e2istin+ &iens an Hor en($)%ran(es o.$& o-ner o. @.ore $s.> FSGDG FSGDG NNNNNNNNNNNNNNNNNNNNNNNN NNNNNNNNNNNNNNNNNNNNNNNN0 In its re(o$rse %e.eror.ore t*e Co$rt o.or) part o.. T*at t*e p$r(*ase pri(e s*a&& %e at 3IVE THOUSAND TBO HUNDRED PESOS 4PK. P*i&ippines.ir)e t*e De(ision o.0 Hen(e.

e Co2!t'0 R23456 T. t*e A+ree)ent.ai&e to raise in t*e &o-er (o$rt 0III. provi es> 0SEC.e pet4t4o5 40 7e8o47 o9 me!4t.e I002e0 Be. (orporate . A (orporation is a /$ri i(a& person separate an istin(t . into t*e isp$te A+ree)ent -it* Respon ent Motori(* Sa&es Corporation. # Un&ess ot*er-ise provi e in t*is Co e. a&&e+es t*at on 3e%r$ar' 76. Is t*e a&&e+e a&teration o.i(tion is app&i(a%&e in t*e instant (ase 0II. or -*ere .. B*et*er or not t*e appe&&ate (o$rt )a' (onsi er )atters -*i(* t*e parties . steno+rap*i( noteFsG V. BP D=. @<. Ma' t*e o(trine o. Gr$en%er+1s testi)on' as re(or e in t*e trans(ript o. In(.ie s$(* sa&e. sa&e %et-een petitioner an Motori(*I @. pier(in+ t*e vei& o.e or rati. -*i(* -as in t$rn a&&e+e &' represente %' its treas$rer. ans-er in t*e trans(ript o. t*e propert' o. B*et*er or not t*ere is a va&i an en. sto(. t*e P*i&ippines. (orporate .or a)a+es an attorne'1s .i2e t*eir si+nat$res on t*e (ontra(t t*e' %ot* (onsente to %e %o$n %' t*e ter)s t*ereo. 78=8. Bas t*ere a va&i (ontra(t o. Are respon ents &ia%&e . t*e (orporate po-ers o. T*e Boar o. ot*er-ise . pier(in+ t*e vei& o.. S$(* (ontra(t.e t*e .o&&o-in+ iss$es> 0I. (annot %in Motori(*. An res Co. %e(a$se it never a$t*ori. B*et*er or not t*e o(trine o. a&& %$siness (on $(te an a&& propert' o. B*et*er or not respon ents are &ia%&e .ation . Se(tion @< o. Petitioner insists t*at 0F-G*en Gr$en%er+ an Co a.ore+oin+ an -i&& t*$s is($ss t*e) seriati) as . petitioner raises t*e .ro) its sto(. *o-ever.*o& ers or )e)%ers. Appea&s erre in *o& in+ t*at t*ere is a va&i (orre(tionHs$%stit$tion o. ire(tors. Tr$e. t*is (aseI 6. 78=8. its sto(. Gr$en%er+ an Co si+ne on 3e%r$ar' 76.T.or)e $n er t*is Co e s*a&& %e e2er(ise . petitioner (onten s t*at t*e (ontra(t is %in in+ on t*e t-o (orporations. ire(tors or tr$stees to %e e&e(te .i(tion %e app&ie to Motori(*I <. Be o not a+ree.no-n as t*e Corporation Co e o. steno+rap*i( notes )ateria& to t*e isposition o.V/3474t: o9 A6!eeme5t Petitioner San !$an Str$(t$ra& an Stee& 3a%ri(ators. s$(* (orporations (ontro&&e an *e& %' t*e %oar o. it entere t*ro$+* its presi ent.ore t*is Co$rt. F4!0t I002e.*o& ers or )e)%ers -it*o$t e2press a$t*ori. A((or in+&'.ro) t*e (orporation1s %oar o. a((or in+ to -*i(* a &ot o-ne %' Motori(* Sa&es Corporation -as p$rporte &' so& . a&& (orporations .0 Er+o. B*et*er or not t*e Co$rt o. Dire(tors or Tr$stees.ro) a)on+ t*e *o& ers o.0 T*e Co$rt s'nt*esi.s.or(ea%&e (ontra(t %et-een t*e petitioner an t*e respon ent (orporation 0IV.*o& ers or )e)%ers an )a' not %e so& %' t*e sto(. t*e (orporation is not t*e propert' o.ees.o&&o-s> 7.or a)a+es an attorne'1s . Nenita Lee Gr$en%er+.eesI T.

etin+... t*e (orporation an to is%$rse t*e) in a((or an(e -it* t*e a$t*orit' +iven *i) %' t*e %oar or t*e proper&' a$t*ori. Se&&in+ is o%vio$s&' .e -it* a(t$a& or apparent a$t*orit' to %$' or se&& rea& propert'. -*i(* +enera&&' *as %een es(ri%e as 0to re(eive an . in(orporation. It *as not s*o-n an' provision o. in(orporation. (annot %in t*e (orporation in a sa&e o.. as(ertainin+ t*e e2tent o. to se&& t*e s$%/e(t par(e& o.i(er or a+ent. as $s$a&&' pertainin+ to t*e parti($&ar o.a(t o. 789.ai&e to is(*ar+e t*is %$r en. Conse:$ent&'. &an .0 In $%ita%&'.i(ers. *er position. or re&evant provisions o. Motori(*.ro). %' virt$e o. t*e' -o$& *o& t*e prin(ipa& &ia%&e. its assets.$n s o. *er a$t*orit' to represent t*e (orporation. T*at Nenita Gr$en%er+ is t*e treas$rer o.. t*is Co$rt *as *e& t*at 01a (orporate o. t*e (orporation.0 Un&ess $&' a$t*ori. Motori(* is )ar. e2port an i)port in re&ation to a +enera& )er(*an isin+ %$siness. t*e Co$rt *as a&so re(o+ni. petitioner *a t*e %$r en o. are %o$n at t*eir peri&. %$siness.. s$%/e(t to t*e arti(&es o.i(ers or a+ents in t*e nor)a& (o$rse o. T*e +enera& prin(ip&es o. an a&so s$(* po-ers as. s$(* a$t*orit'. a (orporation )a' a(t on&' t*ro$+* its %oar o. to as(ertain not on&' t*e .e to se&& t*e propert' o. a+en(' %$t a&so t*e nat$re an e2tent o. an a(tivit' -*i(* . is $pon t*e) to esta%&is* it 4Harr' 5ee&er v. proo. o. %'&a-s. . its treas$rer.1 0 3$rt*er)ore. istri%$tion..erre .i(er or a+ent to %e&ieve t*at it *as (on.erre $pon *i).i(e .i(ers or a+ents.ro) t*e responsi%i&it' o.eep t*e . %'&a-s or %oar reso&$tion to prove t*at Nenita Gr$en%er+ possesse s$(* po-er. In t*e (ase at %ar.erre . 6 P*i&. -*o s*a&& *o& o.e eit*er %' its %'&a-s or %' its %oar reso&$tion. an s$(* apparent po-ers as t*e (orporation *as (a$se persons ea&in+ -it* t*e o.ree petitioner . *er +enera& a$t*orit'. po-ers a e %' ($sto) an $sa+e. Ro ri+$e.. -as a$t*ori.. a$t*orit'. an t*is in(&$ es po-ers -*i(* *ave %een intentiona&&' (on. ire(tors or. t*ro$+* its o.ore t*e tria& (o$rt (ontaine no proo.e t*e r$&e t*at 0persons ea&in+ -it* an ass$)e a+ent.e to represent an %in Motori(* in t*e transa(tion. Its o.or one 479 'ear an $nti& t*eir s$((essors are e&e(te an :$a&i. &a-.0 Neit*er -as s$(* rea& estate sa&e s*o-n to %e a nor)a& %$siness a(tivit' o. Un)ista. a treas$rer. its treas$rer is not (&oa. -*ose po-ers are &i)ite . . -*et*er t*e ass$)e a+en(' %e a +enera& or spe(ia& one.orei+n to a (orporate treas$rer1s .ie . provin+ t*at Nenita Gr$en%er+ -as in . t*e parti($&ar %$siness.. a+en(' +overn t*e re&ation %et-een t*e (orporation an its o. or )a' %e i)p&ie . evi en(e %e. t*e (orporation.a%&'.a(t a$t*ori.i(er or a+ent )a' represent an %in t*e (orporation in transa(tions -it* t*ir persons to t*e e2tent t*at t*e a$t*orit' to o so *as %een (on. an in (ase eit*er is (ontroverte .ro) a)on+ t*e )e)%ers o. Respon ent Motori(* (ate+ori(a&&' enies t*at it ever a$t*ori.a&&s -a' %e'on t*e s(ope o. in t*e $s$a& (o$rse o. sai respon ent1s arti(&es o. Petitioner (annot ass$)e t*at s*e. Motori(* oes not .er o. -*en a$t*ori.e o.e Nenita Gr$en%er+.$n(tion. are in(i enta& to. T*$s. t*e po-ers intentiona&&' (on. t*e %$r en o.e .t*ere is no sto(. Petitioner .. i.erre . T*e pri)ar' p$rpose o.

t*e Civi& Co e &ists t*e re:$isites o.a(t o. t*eir a$t*orit' are %in in+ on t*e (orporation. sa&e.0 In t*is (ase. B$t -*en t*ese o.. Appea&s. Bein+ ine2istent an voi .or a va&$a%&e (onsi eration? 222 222 222 Petitioner . t*at Motori(* ever a$t*ori.i(ers -it*in t*e s(ope o. a va&i an per. no (ontra(t to %in t*e o%&i+or -as per. T*e o($)ent is a *an J-ritten one. t*e Civi& Co e o.e(te .e(te (ontra(t> 0479 (onsent o.ie %' Motori(*. B*en a sa&e o. or )a e it appear to an' t*ir person t*at s*e *a t*e a$t*orit'. -e *o& t*at t*e 3e%r$ar' 76. t*at Motori(* rati. 7=A=.e or rati. attorne' are ne(essar' in t*e . %ene. to se&& its &an or to re(eive t*e earnest )one'. t*e a(ts o. t*e Civi& Co e.ie . t*e &atter s*a&& %e in -ritin+? ot*er-ise. an it %ears on&' Nenita Gr$en%er+1s si+nat$re.e to enter into t*e (ontra(t o. Petitioner rests its ar+$)ent on t*e re(eipt -*i(*.0 as evi en(e %' t*e re(eipt iss$e %' Respon ent Gr$en%er+.ie .e Nenita Gr$en%er+. Be(a$se Motori(* *a never +iven a -ritten a$t*ori. As t*e (onsent o. sa&e %et-een petitioner an Motori(*. proo. sai (ontra(t (annot %e rati.in in+ o.o$n %' t*e tria& (o$rt an a.0 0ART.its. *o-ever. t*e (ontra(tin+ parties? 4@9 o%/e(t (ertain -*i(* is t*e s$%/e(t )atter o. T*ere. sa&e %e(a$se o. or t*at t*e sai (ontra(t -as rati. its 0a((eptan(e o.o&&o-in+ (ase> 222 222 222 4K9 To enter an' (ontra(t %' -*i(* t*e o-ners*ip o.ie sai (ontra(t o. t*ere is a (&ear a%sen(e o. a pie(e o. oes not prove t*e . &an ..ore. 7=A6.$rt*er (onten s t*at Respon ent Motori(* *as rati.ation to Respon ent Gr$en%er+ to se&& its par(e& o. t*e sa&e s*a&& %e voi . . Arti(&e 7<7= o.ie %' Motori(*. t*e se&&er -as not o%taine .i(ation. rati. t*ere (an %e no va&i (ontra(t o.ir)e %' t*e Co$rt o.ie s$(* a(ts or is estoppe . Spe(ia& po-ers o. t*eir a(tions 0(annot %in t*e (orporation. e2press&' or i)p&ie &'. not a (orporate re(eipt.Arti(&es 7=A6 an 7=A= o. Neit*er -as t*ere an' proo. t*e (ontra(t? 4<9 (a$se o.. $n&ess it *as rati. Certain&'. t*e o%&i+ation -*i(* is esta%&is*e . t*e P*i&ippines provi es> 0ART.ro) is(&ai)in+ t*e).ro) t*e %e+innin+. T*is . As a +enera& r$&e. t*ere is no evi en(e t*at Gr$en%er+ -as a$t*ori.a(t$a& . t*is o($)ent a&one oes not prove t*at *er a(ts -ere a$t*ori. t*e t-o (o$rts is %in in+ on t*is Co$rt.i(ers e2(ee t*eir a$t*orit'. 78=8 A+ree)ent entere into %' t*e &atter -it* petitioner is voi $n er Arti(&e 7=A6 o. an i))ova%&e is trans)itte or a(:$ire eit*er +rat$ito$s&' or . &an or an' interest t*erein is t*ro$+* an a+ent t*e a$t*orit' o. Petitioner is (&$t(*in+ at stra-s. (orporate o.0 As . t*e (ontra(t.

/$sti(e an $e pro(ess. anot*er (orporation.i(tion o.$se &e+iti)ate iss$es? or serve as a )ere a&ter e+o or %$siness (on $it o. (on(e es *avin+ raise t*e iss$e %e&ate &'. t*e Co$rt sti&& . . T*is .(overs an iso&ates t*e (orporation ...i&e its s$rJre/oin er %e. (orporate . i&&e+a&it' or ine:$it'? e.naver' or (ri)e.e petitioner. Se(on . s*ie& in+ an' a&&e+e . *o-ever. T*$s.e Co!po!/te Ve43 Not J20t494e7 Petitioner a&so ar+$es t*at t*e vei& o.*o& ers. Gr$en%er+ an Nenita R.eat$re .ro) t*e )e)%ers.ra$ .ore t*e Co$rt o.0 Be stress t*at t*e (orporate . its o. a )onopo&' or +enera&&' t*e perpetration o. t*e tria& (o$rt nee not %e. On e:$ita%&e (onsi erations. in ivi $a&s. petitioner ar+$es t*at Gr$en%er+ nee e no a$t*ori. %ein+ so&e&' o-ne %' t*e Spo$ses Gr$en%er+ t*e (o)pan' (an %e treate as a (&ose (orporation -*i(* (an %e %o$n %' t*e a(ts o. Respon ent Motori(*.e(tion o.ation . It is -e&&Jsett&e t*at points o. t*e Co$rt *as (onsistent&' r$&e t*at 0F-G*en t*e .in s no reason to pier(e t*e (orporate vei& o.in s no reason to $p*o& it.ro) t*e %oar to enter into t*e s$%/e(t (ontra(t.ro) its sto(. T*e Co$rt is not pers$a e . t*e s$%s(ri%e (apita& sto(.0 o. an e2istin+ o%&i+ation. a (orporate vei& )a' %e $se on&' . t*e pro(ee in+s. not *avin+ one so $rin+ t*e tria&. T*e :$estion o. as t*e' (annot %e raise . stat$tes.i(tion is essentia&&'.&o-s . t*is Co$rt (annot entertain sai iss$e at t*is &ate sta+e o. even i. is to r$n ro$+*s*o over t*e %asi( prin(ip&es o. i&&e+a&it' or ine:$it' (o))itte on t*ir persons. i&&e+a&it' or ine:$it' at t*e e2pense o. pier(in+ t*e vei& o.or .ra$ or an i&&e+a& a(t or as a ve*i(&e . T*$s. t*en.i( a$t*orit'.air p&a'. In t*e present (ase. a (orporate . Ho-ever.or) o.ra$ $&ent or i&&e+a& a(tivities o. (orporate .*o& er -*o nee s no spe(i. a+en(' or a /$n(t o.te to a&&o.or t*e . Tr$e.i(tion is $se as a )eans o.irst ti)e on appea&. t*e (ir($)vention o. a person or an instr$)enta&it'.ra$ . t*e vei& (an %e isre+ar e -*en it is $ti&i. its prin(ipa& sto(. a )atter o. Motori(*. Motori(* s*o$& %e pier(e .ra$ .ai&e to esta%&is* t*at sai (orporation -as .or its (onsi eration )ere&' as an a++re+ation o. Petitioner $tter&' .e as a s*ie& to (o))it . Sin(e 0Spo$ses Re'na& o L. .ro) t*e &e+a& t*eor' t*at a (orporate entit' is separate an istin(t . (onsi ere %' a revie-in+ (o$rt. Appea&s. t*e a%oveJ)entione ar+$)ent -ere to %e a resse at t*is ti)e. as it -ere. t*eories an ar+$)ents not %ro$+*t to t*e attention o. petitioner itse&.ation is t*e &i)itation o.eat p$%&i( (onvenien(e? (on. . %e(a$se t*e &atter is a (&ose (orporation.or t*e evasion o. t*e Co$rt . t*e vei& -it* -*i(* t*e &a.or t*e p$rpose o. &a-.Se1o57 I002e. an investor1s &ia%i&it' to t*e a)o$nt o. t*e a vanta+es o.=DDE to %e a(($rate. or sto(. or t*at it is operate . o. t*e a(*ieve)ent or per. %$siness or+ani. t*ir persons &i.i(tion s*o$& %e set asi e -*en it %e(o)es a s*ie& a+ainst &ia%i&it' .. proo. an or inari&' -i&& not %e. t*e stat$tori&' +rante privi&e+e o. %$t on&' -*en it .or)e . A&&o-in+ petitioner to (*an+e *orses in )i strea).or &e+iti)ate p$rposes. 3irst.*o& ers -*o (o)pose it -i&& %e &i. It a s t*at.*o& ers? or t*at t*e sai vei& -as $se to (on(ea& .P4e!1456 t. one o. Gr$en%er+ o-ne a&& or a&)ost a&& or 88. perpetratin+ a .i(ers or sto(. . t*e invest)ent.

istri%$tion o. v. . t*e iss$e sto(.i(ient +ro$n . Appea&s -*erein t*e Co$rt r$&e t*at 0.Petitioner (&ai)s t*at Motori(* is a (&ose (orporation.s is pro*i%ite . rea& propert' -as (ontra(te %' t*e presi ent o.0 T*e present (ase. )a' %e (onsi ere as a %in in+ (orporate a(t an a %oar a(tion as not*in+ )ore t*an a )ere . in(orporation o. a&& or near&' a&& o.0 B$t t*e . Motori(* oes not %e(o)e one eit*er.ie restri(tions on trans.ore)entione e2(eption oes not app&'. Respon ent Motori(*. it is (&ear t*at Respon ent Motori(* is not a (&ose (orporation. petitioner (orporation is (&assi.. o-ners*ip oes not.ie n$)%er o.er per)itte %' t*is Tit&e? an 4<9 T*e (orporation s*a&& not &ist in an' sto(.a(t$a& )i&ie$ in D$&a' is not on a&& .=DDE0 o.*o& ers s*a&& not e2(ee @C. not e2(ee in+ t-ent' 4@C9? 4@9 A&& o.ines a (&ose (orporation as ..0 T*e arti(&es o. an' o. a&& (&asses s*a&& %e s$%/e(t to one or )ore spe(i.e an' p$%&i( o. its presi ent. t*e s$%/e(t propert' is not ne(essar' to %in t*e (orporation . Sin(e Nenita is not t*e so&e (ontro&&in+ sto(. is one -*ose arti(&es o. s*ares is restri(te in . Petitioner (ites Man$e& R.o$rs -it* t*e present (ase. o. persons.=DDE o. Motori(* Sa&es Corporation oes not (ontain an' provision statin+ t*at 479 t*e n$)%er o.in+ a p$%&i( o. s$.*o& er o. t*e sa&e o. o. or votin+ ri+*ts is o-ne or (ontro&&e %' anot*er (orporation -*i(* is not a (&ose (orporation -it*in t*e )eanin+ o. Grantin+ ar+$en o t*at t*e (orporate vei& o.s in an' sto(. in(orporation provi e t*at> 479 A&& o. its s$%s(ri%e (apita& sto(. Co$rt o. ire(tors. -*o sin+&' is t*e (ontro&&in+ sto(. In t*e present (ase. too. (onse:$ent&'. /$st %e(a$se Spo$ses Re'na& o an Nenita Gr$en%er+ o-ne 88. a (orporation s*a&& %e ee)e not a (&ose (orporation -*en at &east t-oJ t*ir s 4@H<9 o. Motori(*. )a.*o& er or %' anot*er (orporation o.no-&e +e an a(:$ies(en(e o.inition an App&i(a%i&it' o. as previo$s&' is($sse . its votin+ sto(. -it*in t*e )eanin+ o. itse&. 8D. t*is Co e .. a %oar reso&$tion a$t*ori.ore+oin+. &an -o$& t*en %e treate as (on/$+a& propert' o. In(. t*e (orporation1s iss$e sto(.or isre+ar in+ t*e separate (orporate persona&ities. t*e a. Tit&e. sto(. its %oar o. t*e (orporation. a narro.*o& er.*o& er or o. Motori(* is not a (&ose (orporation. # A (&ose (orporation. Not-it*stan in+ t*e . s*a&& %e *e& o.or t*e a(tion o.0 So. t*e s$%/e(t par(e& o. In D$&a'. t*e). or 4@9 a pree)ption o. o. %e(a$se t*e sa)e -as a(:$ire . . its sto(.or)a&it'. t*e %oar o.no-&e +e o.in+ t*e sa&e or )ort+a+e o. Spo$ses Re'na& o an Nenita Gr$en%er+ o-n 0a&)ost 88. is not one o. e2(&$sive o.. t*e Corporation Co e e.erin+ o. Se(tion 8D o. e2(*an+e or )a. T*e Co$rt is not $na-are t*at t*ere are e2(eptiona& (ases -*ere 0an a(tion %' a ire(tor. an t*e a+ree)ent -as entere into %' t*e (orporate treas$rer -it*o$t t*e .e a (&ose (orporation. Motori(* is to %e isre+ar e . a (orporation is not o. ire(tors. an' (&ass. De. a (&ose (orporation -it* t*e . Spo$ses Gr$en%er+. re(or %' not )ore t*an a spe(i. %' itse&. e2(*an+e or )a.avor o. treas$r' s*ares.o&&o-s> 0SEC.erin+ o. t*is Co e.. s$(* sto(. .ie as a (&ose (orporation an . *o-ever. an' sto(. t*e (apita& sto(. o. . or 4<9 &istin+ its sto(. a&& (&asses. Be r$&e t*at it is not. As state %' petitioner. D$&a' Enterprises. T*e F)Gere o-ners*ip %' a sin+&e sto(. 3ro) its arti(&es.

is t*at (orre(tI A T*at -as not as. t*e ot*er spo$se or t*e a$t*orit' o.C. its i))ova%&e propert'.0 Petitioner (&ai)s t*at t*e ans-er 0"es0 -as (rosse o$t. *o-ever. Co.avor o. *ave a+ree to a i.irst )eetin+. t*eir propert' re&ations -o$& %e +overne %' (on/$+a& partners*ip o.0 . *er -*o&e testi)on'.a&& a&on+ t*at 'o$ F-ereG not a$t*ori.4!7 I002e.. t*e (orporation. T*at -as o$r .e(tivit' o./33e56e7 Po!t4o5 o9 TSN Imm/te!4/3 Petitioner (a&&s o$r attention to t*e . is ins$. t*e (o$rt -it*o$t -*i(* t*e isposition or en($)%ran(e is voi . Di 'o$ ever represent to Mr. . +ains.or t*e sa. As a (onse:$en(e.e I A "es. anot*er *is or *er interest in t*e partners*ip or in an' propert' %e&on+in+ to it? neit*er spo$se (an as. 'o$ si+ne in 'o$r (apa(it' as t*e treas$rerI FAG "es. steno+rap*i( notes4TSN9> 0L. in its p&a(e -as -ritten a 0No0 -it* an initia& s(ri%%&e a%ove it. t*e 3a)i&' Co e.$rt*er. Co -as ver' intereste to p$r(*ase t*e propert' an *e o. L "o$ i not sa' t*at 'o$ -ere not a$t*ori. an .0 Ass$)in+ . 0a&ienation o.e(te a sa&e o.$rin+ t*eir )arria+e. Sai e2(erpt s*o$& %e $n erstoo in t*e (onte2t o.e to represent Respon ent Motori(* in t*e sa&e o.erent propert' re+i)e. /$st ans-er it..ore t*e partners*ip *as %een &e+a&&' isso&ve . t*e trans(ript o.e I A Mr. propert'..i(ient to prove t*at Nenita Gr$en%er+ -as a$t*ori.nFeG. t*at t*e spo$ses1 propert' re+i)e is t*e a%so&$te (o))$nit' o.0 66 Bot* re:$ire)ents are )ani. 'o$ i not te&& t*at to Mr. sir.ore t*e e..or a partition o. Hen(e.est&' a%sent in t*e instant (ase. T*ere %ein+ no in i(ation t*at sai spo$ses. t*e sa&e -o$& sti&& %e inva&i . o. L "o$ state on ire(t e2a)ination t*at 'o$ i not represent t*at 'o$ -ere a$t*ori. t*e (orporation an it F-asG a&so t*e presi ent -*o F-asG a&so a$t*ori.e %' t*e (orporation to se&& t*e propert'I A "es sir. L Even t*en 'o$ .e o. (o))$nit' propert' )$st *ave t*e -ritten (onsent o. Nenita Gr$en%er+ (o$& not *ave e. L "es.e o. ar+$)ent. sir.e to se&& t*e propert'I A "es.ie > L So.ere to p$t $p a P7CC. D$rin+ *er (rossJe2a)ination. Respon ent Gr$en%er+ testi. Un er t*is re+i)e. L B$t 'o$ a&so i not sa' t*at 'o$ -ere not a$t*ori.CCC. t*e properties %e. -*o appear to *ave %een )arrie %e. t*e s$%/e(t &ot %e(a$se 0FtG*ere is no (oJo-ners*ip %et-een t*e spo$ses in t*e properties o.e to si+n on %e*a&. t*e (on/$+a& partners*ip o.o&&o-in+ e2(erpt o.e nor i 'o$ sa' t*at 'o$ -ere a$t*ori.e to se&& t*e propert'. . sir. neit*er spo$se (an a&ienate in .. +ains. Co t*at 'o$ -ere a$t*ori. T*is. A I /$st to& t*e) t*at I -as t*e treas$rer o. )e.CC earnest )one' at t*at ti)e. T.

"o$ vo&$ntari&' a((epte t*e P7CC. t*e pro(ee s o.arG as it F-asG (on(erne . Petitioner Corporation . sir1. petitioner. FrGespon ents atte)pte an s$((ee e in i)pressin+ on t*e tria& (o$rt an Ft*eG Co$rt o.o&&o-s> 0L. as a$t*ori.or )ore t*an ten 'ears an *as a&so serve as (*ie. in *is +reat esire to %$' t*e propert'. Nenita Gr$en%er+ i not testi. A "es. sin(e t*e sa&e i not p$s* t*ro$+*.or)er spe(i. Respon ent Motori(*. . %ot* t*e tria& an t*e appe&&ate (o$rts t*at t*e . t-o ot*er (orporate entities.i(er o.ait* is $ns$%stantiate an . *o-ever. Appea&s t*at Gr$en%er+ i not represent *erse&.ait* FinG representin+ *erse&.i(a&&' in i(atin+ t*at s*e -as si+nin+ on %e*a&.ere to ret$rn t*e a)o$nt to petitioner 0. e2e($tive o. petitioner )aintains t*at Respon ent Gr$en%er+ s*o$& %e *e& &ia%&e %e(a$se s*e 0a(te .ai&s to pers$a e t*e Co$rt. anot*er (orporation. -e s$stain t*e .. Hen(e..e Respon ent Gr$en%er+ an t*at t*e (ontra(t F-asG not %in in+.ra$ an %a .e-ise a(te in %a .ait*.(a$tion to t*e -in %' o. L In 'o$r a((o$ntI A "es. Co (annot .'in+ Gr$en%er+1s a$t*orit' to se&& t*e &ot. I002e-D/m/6e0 /57 Atto!5e:'0 Fee0 3ina&&'. t*e s(ope o. In ee . petitioner pra's .irst veri.e %' FRGespon ent FCGorporation. its o-n o. (orporate %$siness.in in+s o. a (orporate treas$rer s$(* as Gr$en%er+.ait* -*en it (&ai)e it i not a$t*ori.ra$ $&ent&' an in %a . Gr$en%er+1s a$t*ori. petitioner1s (&ai) o. .erin+ an pa'in+ t*e earnest )one' -it*o$t . as $&' a$t*ori. t*e a$t*orit' o. petitioner appears to %e t*e vi(ti) o.0 In an' event. t*e (*e(. an a-ar o.CC. .a(t$a& %ases. -e note t*at An res Co is not a neop*'te in t*e -or& o. . )a&i(e an %a .ore+oin+ a&&e+ations &a(. Aren Co))er(ia& (Ho Motori(* Sa&es Corporation. Respon ent Motori(* &i.ees. Petitioner Corporation. Finso. T*e a)o$nt pai as 0earnest )one'0 -as not proven to *ave re o$n e to t*e %ene. S*e testi..0 Respon ent Gr$en%er+.e *er to se&& its propert'. He *as %een t*e presi ent o. &an %e&on+in+ to Motori(*.0 Moreover. .ra$ . Fo2!t.a(t. a)a+es or attorne'1s .ees (annot %e /$sti. -as en(as*e . t*e (*e(. Motori(* Sa&es Corporation.0 Ass$)in+ t*at Respon ent Motori(* -as not a part' to t*e a&&e+e .or a)a+es an attorne'1s .CCC. as a )atter o. In $%ita%&'.0 As a&rea ' state .C&ear&' t*en. espite re(eipt an en/o')ent o. -as pai in )' na)e an I epositFe G it .ei+n i+noran(e o. sir..ie .it o.i(er1s ne+&i+en(e in enterin+ into a (ontra(t -it* an pa'in+ an $na$t*ori. Gr$en%er+ o. Respon ent Motori(*. Gr$en%er+1s a(t. Petitioner (&ai)s t*at sai a)o$nt -as eposite to t*e a((o$nt o. %e(a$se 0it -as eposite -it* t*e a((o$nt o. .e %' Respon ent Motori(* espite t*e re(eipt iss$e %' t*e . . *er testi)on' e)onstrates t*at t*e presi ent o.e o. On t*e ot*er *an . . Neit*er (an *e %e o%&ivio$s to *is $t' to as(ertain t*e s(ope o.' t*at Motori(* *a a$t*ori. t*re. isp$tes t*e a&&e+ations o. a&&e+in+ t*at 0FiGn an $tter isp&a' o. t*at -as en(as*e .ation to enter into a (ontra(t to se&& a par(e& o. o.ie as .

Arti(&e @7KK o.. Nenita Gr$en%er+ s*o$& %e or ere to ret$rn to petitioner t*e a)o$nt s*e re(eive as earnest )one'.0 BHERE3ORE. !r. as 0no one s*a&& enri(* *i)se&.As (orre(t&' r$&e %' t*e Co$rt o.. t*e Civi& Co e provi es t*at 0FpGa')ent %' reason o. (on($r. Be&&osi&&o. . t*e Civi& Co e. Motori(*. *o-ever. SO ORDERED. anot*er. petitioner pai Gr$en%er+ on t*e )ista.e in t*e (onstr$(tion or app&i(ation o. Appea&s.i($&t :$estion o. t*e pre(e in+ arti(&e. &a. t*at s*e *a t*e a$t*orit' to se&& t*e propert' o.)a' (o)e -it*in t*e s(ope o..en %e&ie. Vit$+ an L$is$)%in+. !! . A&t*o$+* t*ere -as no %in in+ re&ation %et-een t*e). at t*e e2pense o. t*e petition is *ere%' DENIED an t*e assai&e De(ision is A33IRMED. a i. a )ista. Davi e.0 a prin(ip&e e)%o ie in Arti(&e @7K6 o.

S#NOPSIS Respon ent UIG an petitioner SBMA entere into a Lease an Deve&op)ent A+ree)ent 4LDA9 -*ere%' respon ent UIG s*a&& &ease . MANUEL B.or t*e e2tra/$ i(ia& ta. it )$st a(:$ire a &i(ense .ir)e t*e e(ision o. respon ents. T*e Co$rt o. Septem e! 14. SBMA -as estoppe .ore t*e tria& (o$rt. SBMA e.. te)porar' restrainin+ or er an -rit o. *o-ever. UNIVERSAL INTERNATIONAL GROUP OF TAI$AN .i&e a Motion to Dis)iss (onten in+.ore t*e Re+iona& Tria& Co$rt 4RTC9 o. pro(ess.avor o)esti( (orporations -*o enter into so&itar' transa(tions -it* $n-ar' . UIG. A. LUI!ANO an RA"MOND P.. t*e tria& Co$rt.ro) :$estionin+ t*e (apa(it' to s$e o. a)on+ ot*ers.or a -rit o. Appea&s (orre(t&' a. No. T*erea. a o)esti( . it r$&e t*at no rationa&i. petitioners. t*is petition.ter (ontra(tin+ -it* a . (&$%Hresort.ation -as possi%&e .orei+n (orporation. In enterin+ into t*e LDA -it* UIG. t*at respon ent UIG *a no (apa(it' to s$e %e(a$se it is a . t*at t*e &i(ensin+ re:$ire)ent -as never inten e to .or a -rit o.e its persona&it' an (apa(it' to instit$te t*e s$it %e. T*e Co$rt o.ter. GORDON. Hen(e.ro) en'in+ t*e .orei+n (orporation oin+ %$siness in t*e (o$ntr' to t*e /$ris i(tion o.ai&$re to (o)p&' -it* severa& o. 1*1+". possession. pre&i)inar' in/$n(tion %e.. T*e RTC +rante respon ents1 app&i(ation .ro) t*e SEC an appoint an a+ent . over t*e possession. %e(a$se o.or servi(e o. . RICHARD !. respon ents . T*e (ontra(t (ontaine preJter)ination (&a$ses. ARISTORENAS..or)er1s (apa(it' to s$e. o$r (o$rts.. O&on+apo Cit'. UIG INTERNATIONAL DEVELOPMENT CORPORATION an SUBIC BA" GOL3 AND COUNTR" CLUB.R. respon ent UIG1s .ir) is estoppe . t*e Motion to Dis)iss %$t erre in s$stainin+ t*e Brit o. Vs. 2. its (ontra(t$a& $n erta. petitioner SBMA res(in e t*e LDA an too.ir)s an t*en rep$ iate t*eir o%&i+ations si)p&' %e(a$se t*e &atter are not &i(ense to o %$siness in t*is (o$ntr'.a(i&ities t*ereto to %e trans. Co$rse an app$rtenant . pre&i)inar' )an ator' an pro*i%itor' in/$n(tion an is)isse petitioner SBMA1s )otion to is)iss. Bit*o$t s$(* &i(ense.orei+n nonJresi ent (orporation not &i(ense %' t*e Se($rities an E2(*an+e Co))ission. Appea&s a. operation an )ana+e)ent o. In t*is (ase.in+s. S$%se:$ent&'. t*e (ontra(t.i&e a (o)p&aint a+ainst petitioner SBMA .ro) petitioner SBMA t*e Bini(ti(an Go&. (o$rse. G.in+ o.or)e into a -or& (&ass 7=J*o&e +o&. +o&. (o))er(ia& to$ris) an resi entia& (enter.orei+n . Pre&i)inar' Man ator' an Pro*i%itor' In/$n(tion.. VENTURA. In(.e(tive&' re(o+ni. It s*o$& %e stresse . B*i&e it (on(e e t*at t*e &a.T&IRD DIVISION SUBIC BA# (ETROPOLITAN AUT&ORIT# .ir)e t*e enia& o. it (annot instit$te a s$it in t*e P*i&ippines.or In/$n(tion an Da)a+es -it* pra'er . Petitioner SBMA . 3ERDINAND M. In or er to s$%/e(t a . t*e s$%/e(t pre)ises.a&&o-e e2tra/$ i(ia& res(ission o.

S#LLABUS 1.0 T*e CA )a e a . it (annot instit$te a s$it in t*e P*i&ippines. t*at t*e &i(ensin+ re:$ire)ent -as 0never inten e to . o$r (o$rts.orei+n (orporation. In t*e present (ase. # It s*o$& %e stresse .e . (ontra(t$a& %rea(* is &a-.A stip$&ation a$t*ori. t*e A+ree)ent.avor o)esti( (orporations -*o enter into so&itar' transa(tions -it* $n-ar' . # Se(tion @. 2. *o-ever.$&. Hen(e.. t*e rea& part' in interest. ever' a(tion )$st %e prose($te or e.i(ation . Un&ess ot*er-ise a$t*ori. T*$s.e(tive&' re(o+ni. t*e propert' even -it*o$t (o$rt intervention. it a&so . T*e' )ere&' ar+$e t*at t*e stip$&ation a&&o-in+ a res(ission an a re(over' o. R$&e < o.a(t$a& . respon ents o not en' t*at t*ere -as s$(* a %rea(* o.o.erent (on(&$sion.' a i. # A (orporation *as &e+a& stat$s on&' -it*in t*e state or territor' in -*i(* it -as or+ani. -e a+ree -it* t*e CA t*at UIGDC an SBGCCI stan to %e %ene.e in anot*er (o$ntr' *as no persona&it' to . it )$st a(:$ire a &i(ense .in no reason at t*is ti)e to /$sti.ro) t*e SEC an appoint an a+ent . t*e s$it. t*e propert' -*en SBMA too.or(e it %' res(in in+ t*e (ontra(t an re(overin+ possession o. UIG.orei+n (orporation oin+ %$siness in t*e (o$ntr' to t*e /$ris i(tion o.ter (ontra(tin+ -it* a . possession is voi . SBMA e.in+ a part' to e2tra/$ i(ia&&' res(in a (ontra(t an to re(over possession o. B*ere it is o%/e(te to. 3or t*is reason. t*e iss$e is sti&& ne(essar' %e.ines a rea& part' in interest in t*is )anner> 0Se(. ID. t*e s$it.0 A. *o-ever. Be .or)er1s (apa(it' to s$e.ore a ta.e over t*e propert'. # A rea& part' in interest is t*e part' -*o stan s to %e %ene. a /$ i(ia& eter)ination o. t*e ot*er part' )a' va&i &' en. t*e propert' in (ase o.in in+ t*at UIGDC an SBGCCI -ere in possession o. RE(EDIAL LA$% CIVIL PROCEDURE% PARTIES TO CIVIL ACTIONS% REAL PART# IN INTEREST% DEFINED% RESPONDENT CORPORATIONS S&OULD BE DEE(ED REAL PARTIES IN INTEREST IN CASE AT BAR. or t*e part' entit&e to t*e avai&s o. e. *. pro(ess. CO((ERCIAL LA$% CORPORATION CODE% AN UNLICENSED FOREIGN CORPORATION CANNOT INSTITUTE A SUIT IN T&E P&ILIPPINES.ite or in/$re %' t*e /$ +)ent o. a (orporation or+ani.orei+n . In or er to s$%/e(t a .in+ SBMA to res(in t*e (ontra(t an to ta.ir)s an t*en rep$ iate t*eir o%&i+ations si)p&' %e(a$se t*e &atter are not &i(ense to o %$siness in t*is (o$ntr'. t*ese (ir($)stan(es. t*e 788A R$&es o.ro) :$estionin+ t*e (apa(it' to s$e o. Bit*o$t s$(* &i(ense. over.ree to en. Moreover.% ID. . In t*is (ase. In enterin+ into t*e LDA -it* UIG.or t*ese R$&es.or t*e stip$&ation a$t*ori.ore t*e tria& (o$rt.ir) is estoppe .% A DO(ESTIC CORPORATION $&O ENTERS INTO A CONTRACT $IT& UNLICENSED FOREIGN CORPORATION IS ESTOPPED FRO( DEN#ING T&E LATTER'S CAPACIT# TO SUE% CASE AT BAR .ation an &e+a& /$sti.itte or in/$re %' t*e present s$it an s*o$& %e ee)e rea& parties in interest.eover )a' %e a&&o-e .o$n t*at t*e' *a a&rea ' )a e s$%stantia& invest)ents in t*e pro/e(t.or servi(e o. A part' is . t*ere -as a rationa&i.e its persona&it' an (apa(it' to instit$te t*e s$it %e..i&e s$its in t*e P*i&ippines.or(e s$(* stip$&ation.e %' &a.en e in t*e na)e o. Parties in Interest.ro) en'in+ t*e . Co$rt. @. a o)esti( . In vie. SBMA is estoppe .

t*e +o&. +. ID. Pre&i)inar' In/$n(tion -as iss$e in (onne(tion -it* a isp$te pertainin+ to t*e (orre(t interpretation o. R. .in+ over t*e propert'.or)er nava& %ase into (ivi&ian $ses. t*e )i&itar' reservations. t*e assai&e RTC Or er i not see.% PROVISIONAL RE(EDIES% INJUNCTION% $RIT OF PRELI(INAR# INJUNCTION% CANNOT BE ISSUED TO RESTRAIN I(PLE(ENTATION OF CONVERSION PROJECTS% SECTION 21 OF RA <22<% S&OULD NOT BAR JUDICIAL SCRUTIN# OF IRREGULARITIES CO((ITTED B# T&E PARTIES TO A CONTRACT. In oin+ so. # Be a+ree -it* t*e CA t*at Se(tion @7 o. a+ainst an' SBMA a(tion. t*at a$t*orit' is to +ive SBMA $n*a)pere is(retion to isre+ar its (ontra(t$a& o%&i+ations $n er t*e +$ise o. t*e . CIVIL LA$% CONTRACTS% STIPULATION AUT&ORI. SBMA1s (onversion pro/e(ts. RA A@@A s*o$& not %ar /$ i(ia& s(r$tin' o. T*ere is an $r+ent an per)anent ne(essit' . t*e LDA. ID. a parti($&ar a(t an is +rante on&' $pon a s*o-in+ o.et pro*i%ition o. A((or in+&'.or t*e -rit to prevent serio$s a)a+e. it -as -it*in t*e /$ris i(tion o.% ID.A.ING A PART# TO E)TRAJUDICIALL# RESCIND A CONTRACT AND TO RECOVER POSSESSION OF PROPERT# IN CASE OF CONTRACTUAL BREAC& IS ALLO$ED B# LA$. a )an ator' in/$n(tion oes not preserve t*e stat$s :$o an is t*$s )ore (a$tio$s&' re+ar e t*an a )ere pro*i%itive in/$n(tion.in+ over t*e +o&.0 Be(a$se it (o))an s t*e per.4. t*e ri+*t is )ateria& an s$%stantia&? @. Ne(essari&'. C&ear&'. t*e propert' -it*o$t an' /$ i(ia& i)pri)at$r.or)an(e o. T*e invasion o. Moreover. (o$rse p$rs$ant to t*e LDA.a%&e? <.ro) ta.ro) o$%t an isp$te. t*e LDA.or t*e (onversion into a&ternative pro $(tive $ses o. t*e iss$an(e o. it re&ie on t*e provisions o.o&&o-in+ re:$isites> 07. t*e iss$an(e o. an a(t. B*i&e possession -as a ne(essar' (onse:$en(e o. . to e&a' or *a)per t*e (onversion o. In ee . pe($niar' esti)ation. t*e . s*o-in+ t*at it is entit&e to t*e -rit. an' o. Se(tion @7 o. t*e a)en e Co)p&aint revea&s t*at it so$+*t to en/oin petitioners . t*e .% COURTS% REGIONAL TRIAL COURT% &AS JURISDICTION OVER ACTION FOR RESCISSION OF CONTRACT. In . it -as )ere&' in(i enta&. over t*e possession. SBMA res(in e t*e LDA an too. irre+$&arities a&&e+e &' (o))itte %' SBMA. t*e app&i(ant *as t*e %$r en o.in+s. an in/$n(tive re&ie. To ivest t*e tria& (o$rt o. i)p&e)entin+ its pro/e(ts. T*e )ain iss$e -as -*et*er SBMA (o$& res(in t*e A+ree)ent.ai&$re to (o)p&' -it* severa& o. t*e operation an t*e )ana+e)ent o. t*e s$it. its (ontra(t$a& $n erta.a(t. UIG1s . Be(a$se it -as a isp$te t*at -as in(apa%&e o. t*e assai&e Brit o. <. (o$rse. It )ere&' restraine SBMA .ro) res(in in+ t*e (ontra(t an ta.ie on&' in a (&ear (ase. # Be(a$se o. ID. A@@A is not a %&an. RA A@@A pro*i%its on&' s$(* (o$rt or ers -*i(* restrain t*e 0i)p&e)entation o. # A (&ose s(r$tin' o. )an ator' in/$n(tion re:$ires t*e per.% $RIT OF (ANDATOR# INJUNCTION% RE=UISITES FOR GRANT T&EREOF% (ANDATOR# INJUNCTION DOES NOT PRESERVE T&E STATUS =UO. it a&&o-e UIG to pro(ee -it* t*e eve&op)ent o.% ID. a (o)p&ainant is (&ear an $n)ista. 5. t*e pro/e(ts . T*e ri+*t o. T*e s$%/e(t stip$&ation is a&&o-e %' &a-.or)an(e o. Se(tion @7 o. # A -rit o.0 T*e Brit iss$e in t*is (ase i not restrain or en/oin t*e i)p&e)entation o. t*e RTC.or)er is /$sti.ree .

*o-ever. t*e iss$e is sti&& ne(essar'. )erit. On t*e ot*er *an . DISMISSED . respon ents *ave not s*o-n an' 0(&ear an $n)ista. 3or(e or %&oo s*e (annot %e /$sti.or a -rit o. Appea&s 4CA9 in CAJGR SP No. o%/e(tion to t*e )erits o.o&&o-s> 0BHERE3ORE. t*e propert' even -it*o$t (o$rt intervention.or(in+ t*e (ontra(t$a& stip$&ation. In t*e present (ase.a%&e ri+*t. o. # Respon ents1 stan -as not a va&i or s$.ai&e to +ive an' se)%&an(e o. Co$rt assai&in+ t*e De(e)%er <. t*e CA an t*e RTC. (ontra(t$a& %rea(*. a part' is . s$(* &a-.er p*'si(a& resistan(e. t*e ot*er part' )a' va&i &' en.% NO VALID OBJECTION TO PETITIONERS' E)ERCISE OF ITS RIG&T IN CASE AT BAR% PARTIES CANNOT DISREGARD A LA$FUL STIPULATION AT $ILL $IT&OUT AN# VALID REASON . pre)ises (onsi ere . pre&i)inar' )an ator' in/$n(tion. *o-ever. Moreover..ina& ar%iters. T*$s. ID.ie in t*e en.ore a ta.i(ation .or &a(. t*e' *ave o.ree to en.or(e it %' res(in in+ t*e (ontra(t an re(overin+ possession o. a /$ i(ia& eter)ination o.$&. In ee . (ontra(t$a& %rea(* is &a-.. ". In ee .ation an a &e+a& /$sti... t*e stip$&ation.ro) en. Bit*o$t pre/$ +in+ t*eir ri+*t to o.i(ient o%/e(tion to SBMA1s e2er(ise o. a /$ i(ia& eter)ination o. T*e Or ers o. t*e R$&es o. possession is voi .or a -rit o. In t*is (ase. -e . t*e iss$e is sti&& ne(essar' %e.or(e)ent o.or(e o.0 . 788A De(ision o.er (ontrovertin+ evi en(e $rin+ t*e tria& on t*e )erits.in+ SBMA to res(in t*e (ontra(t an to ta. s$stainin+ t*eir (&ai) -o$& $n $&' i)inis* t*e . pre&i)inar' in/$n(tion. t*e respon ent (o$rt %ot* ate C< O(to%er 788A *ere%' STAND. DECISION PANGANIBAN. B$t -*en a va&i o%/e(tion is raise .in+ a part' to e2tra/$ i(ia&&' res(in a (ontra(t an to re(over possession o.ere no o%/e(tion to SBMA1s a&&e+ations o. Un er t*e (ir($)stan(es.or t*e stip$&ation a$t*ori. Hen(e. t*e A+ree)ent? t*e' )ere&' ar+$e t*at t*e stip$&ation a&&o-in+ a res(ission an a re(over' o. t*e CA De(ision rea s as . %$t a&so to ta. its ri+*t. B*ere t*e &essees o.ore $s is a Petition $n er R$&e 6K o.in no a e:$ate s*o-in+ o.% ID. T.e over t*e propert'. t*e s$%/e(t stip$&ation.ai&e to o so in t*eir app&i(ation .or(e s$(* stip$&ation.parties to isre+ar it at -i&& -it*o$t an' va&i reason. t*e Co$rt *o& s t*at t*e' . t*ere is a rationa&i. t*e Co$rt o. (o$rts are t*e . SBMA1s a&&e+ations. resistan(e to SBMA1s i)p&e)entation o. an (ertiorari DENIED. respon ents )isera%&' . (ontrar' to t*e r$&in+ o. T*e e(reta& portion o. to -*i(* t*e' *ave a (&ear an $n)ista. as it is *ere%'. t*e &essors )a' app&' .eover )a' %e a&&o-e .e C/0e Be. In ee .e over t*e propert'. 6KKC7.a%&e ri+*t0 to restrain SBMA . SBMA s*o-e t*at it *a a ri+*t not on&' to res(in t*e (ontra(t.$& stip$&ation an a&&o.Moreover. t*e propert' in (ase o. t*e Petition is. respon ents o not en' t*at t*ere -as s$(* a %rea(* o. B*ere it is o%/e(te to. J pA stip$&ation a$t*ori.

i(ia& (apa(it'. De. (o$rse. .ro) petitioner SBMA t*e Bini(ti(an Go&. He s*a&&. (o$rse.ro)G o%str$(tin+ or )e &in+ in t*e operation an )ana+e)ent t*ereo.rain F.en ants. -*i(* -as a.en ants.a(ts are s$))ari. si2t' 4DC9 a's i.ai&$re is reasona%&' s$s(epti%&e o.. +rante *erein respon ents1 app&i(ation .ai&$re s*a&& (ontin$e . Gor on is F+Grante inso. *o-ever. or . 0T*e In/$n(tion %on is . re)ain as e.i(ers Fan G e)p&o'ees to re.ter noti(e .irst Or er o. a 1Lease an Deve&op)ent A+ree)ent1 -as e2e($te %' respon ent UIG an petitioner SBMA $n er -*i(* respon ent UIG s*a&& &ease .$&&' to t*e p&ainti..T*e . Appea&s as . an a&& persons a(tin+ in t*eir %e*a&. o.ro) t*e Lan &or . s$(* vio&ations or . +o&. t*e e. $nti& t*e parties )a' %e *ear on t*e )erits o.. p&ainti.@ FaG F&G an s$(* vio&ation or .a$&t %' Tenant 4ea(* an Event o.i(ers an e)p&o'ees.e %' t*e Co$rt o.o&&o-in+ a(ts an o)issions s*a&& (onstit$te e. O&on+apo Cit' 4Bran(* A<9..or)e into a -or& (&ass 7=J*o&e +o&. Co$rse an app$rtenant . o. ispose o. at Lan &or 1s so&e is(retion. (&$%*o$se..o&&o-s> 0On @K Ma' 788K. a&so ate O(to%er <. an' o.i(es an ot*er app$rtenan(es s$%/e(t o. T*e (ontra(t in pertinent part (ontains preJter)ination (&a$ses.a(i&ities t*ereto to %e trans. 0T*e Motion to Dis)iss .e F/1t0 T*e $n isp$te . petitioners1 Motion to Dis)iss as . t*e Lease an Deve&op)ent A+ree)ent %et-een UIG Tai-an an t*e SBMA? an t*e sai e. t*e Re+iona& Tria& Co$rt 4RTC9 o.or &a(. pre&i)inar' )an ator' an pro*i%itor' in/$n(tion in t*is -ise> 0BHERE3ORE. are ire(te to restore pea(e. (o))er(ia& to$ris) an resi entia& (enter. 788A. o.a$&t 4a9 T*e . t*e +o&.or t*irt' 4<C9 a's a. pre)ises (onsi ere . t*e sa)e.o&&o-s> 0BHERE3ORE. (&$%Hresort.i&e %' Ri(*ar !. . De..i2e at One Mi&&ion Pesos 4P7. or.0 T.or a -rit o.0 T*e se(on RTC Or er.CC9 in (as* or s$ret' %on provi e %' a s$ret' (o)pan' o.CCC. an t*eir a+ents. rep$ta%&e so&ven('. t*e (ase. ($re ..s in t*e )ana+e)ent or operation o. -*i(* provi e> 1Se(tion @@. De.en ants1 A)en e an Conso&i ate Motion To Dis)iss is *ere%' DENIED .ar as t*e s$it a+ainst *i) is (on(erne in *is private or persona& (apa(it'. o. t*e (on itions.ir)e %' t*e appe&&ate (o$rt. t*eir a+ents. (ovenants or a+ree)ents *erein )a e %' Tenant or s$(* S$%si iar' 4ot*er t*an t*ose es(ri%e in Se(tions @@. ot*er-ise (o))ittin+ a(ts ini)i(a& to t*e interest o.s a&& possession o. its S$%si iaries s*a&& (o))it a )ateria& %rea(* or vio&ation o.ore+oin+ pFreG)ises (onsi ere . an t*e . )erit.a$&t9> 222 222 222 4ii9 Tenant or an' o.en ant in *is o.CCC.

ai&$re to e&iver its vario$s (ontra(t$a& o%&i+ations. t*e Go&.or 1In/$n(tion an Da)a+es1 -it* pra'er . On 7@ Septe)%er 788A. In(. private respon ent .a$&t o. t*e initia& noti(e . an (an(e& a&& ri+*ts an privi&e+es +rante to Tenant an its S$%si iaries -it*o$t an' restri(tion on re(over' %' Lan &or . Respon ent UIG. respon ent (o$rt iss$e t*e t-o assai&e or ers s$%/e(t o. De. t*e Lease an Deve&op)ent A+ree)ent an re:$ire it to s*o.. Lan &or )a' i))e iate&' reenter. *avin+ entere into a Lease Deve&op)ent A+ree)ent 4LDA9 -it* it. . preJter)ination -as serve %' petitioner SBMA re:$irin+ private respon ent UIG to va(ate t*e pre)ises.i&in+ o. Tai-an 4UIG9 %e(a$se petitioners. It a&so *e& t*at Respon ents UIG Internationa& Deve&op)ent Corporation 4UIGDC9 an S$%i( Ba' Go&. On < O(to%er 788A. petitioner serve t*e . over possession o. private respon ent UIG1s . an to post t*e re:$ire per. A 3e%r$ar' 788A. an to pa' a(($)$&ate &ease renta&s an $ti&ities.0 R23456 o9 t. pri)ari&' its . t*e s$%/e(t pre)ises. an event o. petitioner SBMA sent a &etter to private respon ent UIG e(&arin+ t*e &atter in e.ai&$re to (o)p&ete t*e re*a%i&itation o. an Co$ntr' C&$%.a$&t an retain a&& rent an ot*er a)o$nts previo$s&' pai %' tenant an its S$%si iaries.or)a& noti(e o.a$&t s*a&& *ave o(($rre an %e (ontin$in+. an' perio +rante *ere$n er to ($re an' Event o. On A Mar(* 788A.in+s. pre&i)inar' in/$n(tion. . 0On = Septe)%er 788A. Co$rse an too. Respon ent Universa& Internationa& Gro$p o. Petitioner SBMA sent a &etter to private respon ent UIG (a&&in+ its attention to its a&&e+e severa& (ontra(t$a& vio&ations in vie.1 0On 6 3e%r$ar' 788A.or t*e APEC Lea er1s S$))it.a$&t o.ter t*e e2piration o. T*erea.$rin+ s$(* DC a' perio an Tenant or s$(* S$%si iar' %e+ins an i&i+ent&' p$rs$es to (o)p&etion s$(* ($re -it*in t*irt' 4<C9 a's o.or)an(e %on . its )ain (ontra(tor 33 Cr$. renovate or re&et a&& or part o. t*e Propert' to ot*ers.e. On even ate.or a -rit o.7 o. -ere estoppe . to (o)p&' -it* its o%&i+ations -it*in a . t*e petition.ie . its (ontra(t$a& o%&i+ations to SBMA $n er Se(tion @@. t*e propert' -*en S$%i( Ba' Metropo&itan A$t*orit' 4SBMA9 res(in e t*e LDA .o.ter.a's.ai&e to (o)p&' -it* its $n erta. Co$rse in ti)e .ro) :$estionin+ its stan in+.i&e a (o)p&aint a+ainst petitioner SBMA . Lan &or )a'. an (o))itte itse&. s$it a+ainst t*e &atter. interpose as an e2($se t*e a&&e+e e. (&os$re o.ees an a)a+es o-ne %' Tenant an its S$%si iaries. res$&tin+ in t*eir .ro) Lan &or ? 222 222 222 4%9 I. Private respon ent UIG. in its so&e is(retion? 4i9 Ter)inate t*is Lease t*irt' 4<C9 a's a. *o-ever. Appea&s $p*e& t*e (apa(it' to s$e o.or rents. S$%i( Ba' Go&.(a$se -*' petitioner SBMA s*o$& not preJter)inate t*e a+ree)ent. in its &etter o. a &etter o. te)porar' restrainin+ or er an -rit o. Private respon ents pai t*e renta& arreara+es %$t t*e ot*er o%&i+ations re)aine $nsatis.. 4SBGCCI9 -ere rea& parties in interest %e(a$se t*e' *a )a e s$%stantia& invest)ents in t*e vent$re an *a %een in possession o. e.e Co2!t o9 Appe/30 T*e Co$rt o.

t*e +reater )ass o. 0B*et*er or not t*e respon ent (o$rt (o))itte a reversi%&e error %' san(tionin+ epart$re %' t*e tria& (o$rt . in -*i(* t*e S$pre)e Co$rt a&&o-e a (ontra(t$a& stip$&ation +ivin+ t*e &essor t*e ri+*t to ta. A@@A III.0 Disa+reein+ -it* t*e a%ove /$ +)ent. an' an a&& in/$n(tive re&ie.e possession o. II. not (o))on %$t not $n.a(t t*at t*e s$it . not*in+ %$t )is(*ie.ation -as possi%&e0 . (ases. R.0 It a&so re/e(te petitioners1 re&ian(e on Consin+ v. (annot %e p&a(e %e'on t*e pa&e o.A. t*e (ase espite t*e . pro*i%itor' -rits.et pros(ription a+ainst t*e iss$an(e o. !a)an re. an 4%9 T*e tria& (o$rt *aF G a$t*orit' to iss$e t*e :$estione in/$n(tive re&ie. 0B*et*er or not respon ent (o$rt (o))itte a reversi%&e error in r$&in+ t*at private respon ents *aF G t*e (apa(it' to s$e an possess )ateria& interest to instit$te an a(tion a+ainst petitioners.0 It sai t*at 0t*ose a(tions -*i(* are re)ove . . /in+oists -*o (annot &oo. t*e S$pre)e Co$rt on t*e )atter.e petitioners1 s$%)ission t*at Se(tion @7 o.or t*e e2tra/$ i(ia& ta. t*e &ease propert' -it*o$t nee o. t*e )ain iss$e. petitioners e&evate t*e )atter to t*is Co$rt.0 B*i&e it (on(e e t*at t*e &a. t*e Brit o.i&e %' private respon ents is essentia&&' an e/e(t)ent (ase. IV. RA A@@A -as 0a %&an.e-ise. It e2p&aine t*at Consin+ -as a 0/$ i(ia& a%erration. t*e (orporate entit' .into *is o-n *an s. o$r /$rispr$ en(e.ro) t*e a((epte an $s$a& (o$rse o. (o$rt or er.no-n in t*e %o ' o. t*e s$%/e(t pre)ises is s$ppose &' i&&e+a& Fas itG r$ns (o$nter to t*e esta%&is*e &a. it e%$n. Pre&i)inar' In/$n(tion i not ispose o.orei+ners -*o o %$siness *ere t*at -e are a +ro$p o. it o%serve t*at 0-e (annot an s*o$& not sen t*e )essa+e to . -*i(* &a's o-n a r$&in+ (ontrar' to t*e tea(*in+ o.in+ o.0 3$rt*er)ore.ro) t*e state o%/e(tives o. . it r$&e t*at 0no rationa&i. 0B*et*er or not t*e respon ent (o$rt (o))itte a reversi%&e error in r$&in+ t*at> 4a9 T*e tria& (o$rt *aF G /$ris i(tion over t*e nat$re an s$%/e(t )atter o. Petitioner SBMA s$%)its t*e .e t*e &a. possession. a (ontra(t. at ever' stran+er -it* a -ar' e'e an treat t*e) -it* $neven *an s. an (*aos. /$ i(ia& pro(ee in+s %' .a&&o-e e2tra/$ i(ia& res(ission o.an Ft*eG app&i(a%&e e(isions o. %e'on o$r narro.e I002e0 In its Me)oran $). 0B*et*er or not t*e respon ent (o$rt (o))itte a reversi%&e error in r$&in+ t*at petitioner1s a(tion o. T. espite t*e e2press pro*i%ition $n er Se(tion @7 o.interests an )$st &oo. Con(&$ in+. To *o& ot*er-ise -o$& %e pro $(tive o. It reasone t*at 0no one )a' ta.Li.or o$r (onsi eration> I.o&&o-in+ iss$es . e2traJ/$ i(ia&&' re(overin+ t*e possession o. it *e& t*at t*e iss$an(e o.FsG a+ainst SBMA.

petitioners1 Motion to Dis)iss -as (orre(t.a%&e ri+*t an 4@9 irrepara%&e a)a+e on t*e part o. t*e Co$rt s*a&& eter)ine t*ese :$estions> 479 -*et*er t*e Brit o.e an' r$&in+ on t*e essentia& e&e)ents o. t*e s$%/e(t pre)ises . 0B*et*er or not in t*e event o. in/$n(tive re&ie. t*e &atter *aF G not 'et %een (&ear&' esta%&is*e . t*e private respon ents a&t*o$+* t*e &atter F-eGre (&ear&' not entit&e t*ereto as t*e' (a)e %e. an 4%9 -*et*er t*e iss$an(e o. t*e S$pre)e Co$rt )i+*t )o i. an 4<9 -*et*er t*e RTC *as /$ris i(tion over t*e s$it. In/$n(tion a+ainst SBMA iss$e %' t*e tria& (o$rt (ontravenes Se(tion @7 o. in . t*e Brit o. &a. 0B*et*er or not respon ent (o$rt (o))itte a reversi%&e error in epartin+ .&ai o-n %' t*e S$pre)e Co$rt in severa& &ea in+ (ases. /$ i(ia& pro(ee in+s %' s$stainin+ t*e +rant o.eover o. -e . t*e private respon ents..ro) petitioner SBMA an trans.avor o. Un er t*e . 0B*et*er or not respon ent (o$rt (o))itte a reversi%&e error %' epartin+ .. RA A@@A? 4@9 -*et*er respon ents *ave esta%&is*e t*eir entit&e)ent to t*e Brit? an 4<9 -*et*er SBMA1s res(ission o. t*e S$pre)e Co$rt )i+*t $n-ittin+&' (a$se +reat &oss or irrepara%&e a)a+e to t*e +overn)ent %e(a$se s$(* a r$&in+ ten Fe G to sen a -ron+ si+na& t*at P*i&ippine Co$rts F-o$& G re-ar rat*er t*an p$nis* .0 Disti&&in+ t*e a%oveJ:$ote assi+n)ent o. t*e private respon ents.ore $s> 4a9 -*et*er t*e enia& o.orei+n investors -*o )isera%&' .irst iss$e. ta. -*i(* e. Pre&i)inar' Man ator' an Pro*i%itor' In/$n(tion -as proper. (onsistin+ o. Arti(&e VIII o. t*e propert' are a&&o-e %' &a-.ai&in+ to )a.' or even reverse t*e o(trines an prin(ip&es o.ro) t*e a((epte an $s$a& (o$rse o.ro) t*e a((epte an $s$a& (o$rse o. t*e )ain (ase. a 1no reversi%&e error1 /$ +)ent. V. /$ i(ia& pro(ee in+s %' san(tionin+ t*e i&&e+a& pro(e $re o. in vio&ation o. /$ i(ia& pro(ee in+s %' s$stainin+ t*e +rant o.in t-o )ain iss$es %e. t*is Honora%&e Division o. a 1no reversi%&e error1 /$ +)ent on t*e :$estione e(ision o.> 479 a (&ear an $n)ista. . t*e 78=A P*i&ippine Constit$tion. VI.in+ possession o.ai&e to (o)p&' -it* t*eir (ontra(t$a& (o))it)ents to eve&op vita& +overn)ent assets. 4@9 -*et*er Respon ents UIGDC an SBGCCI are rea& parties in interest. t*e respon ent (o$rt. in/$n(tive re&ie. t*e LDA an ta. t*is Honora%&e Division o. VIII. a&t*o$+* t*e ri+*ts o. 0B*et*er or not in t*e event o. VII. t*e Co$rt s*a&& reso&ve 479 -*et*er Respon ent UIG *as t*e (apa(it' to s$e. IO. in/$n(tive re&ie. Se(tion 6. 0B*et*er or not respon ent (o$rt (o))itte a reversi%&e error %' epartin+ . Un er t*e se(on iss$e.ro) t*e a((epte an $s$a& (o$rse o.ore t*e (o$rts -it* $n(&ean *an s.e(tive&' pre/$ +e t*e )erits o.errin+ it into t*e *an s o. errors.

s$it or pro(ee in+ in an' (o$rt or a )inistrative a+en(' o.orei+n nonJresi ent (orporations (annot .orei+n (orporation transa(tin+ %$siness in t*e P*i&ippines -it*o$t a &i(ense. Pre&i)inar' Man ator' an Pro*i%itor' In/$n(tion.0 A (orporation *as &e+a& stat$s on&' -it*in t*e state or territor' in -*i(* it -as or+ani.or servi(e o.e . it )$st a(:$ire a &i(ense .an not %' t*e parties. petitioners a t*at t*e RTC *a no /$ris i(tion over t*e nat$re o.ore t*e RTC. a(tion re(o+ni. a o)esti( . F4!0t I002e-De54/3 o9 t.no-&e +e t*e sa)e %' enterin+ into a (ontra(t -it* it.orei+n (orporation oin+ %$siness in t*e (o$ntr' to t*e /$ris i(tion o.orei+n ori+in as a (orporate entit' is estoppe to en' its e2isten(e an (apa(it'. Hen(e.e (ot4o5 to D40m400 In its a)en e Motion to Dis)iss . o$r (o$rts.i&e s$its in t*e P*i&ippines. Reiteratin+ t*e ar+$)ents %e. $n&i(ense .e in anot*er (o$ntr' *as no persona&it' to .orei+n . estoppe& to en' (orporate e2isten(e app&ies to . %e(a$se it is a .or)er1s (apa(it' to s$e.i&e s$its in t*e P*i&ippines. No . 4a9 Respon ents1 Capa(it' to S$e Petitioners (onten t*at UIG oes not *ave t*e (apa(it' to s$e.e $n er P*i&ippine &a-s.erre %' &a. it (annot instit$te a s$it in t*e P*i&ippines. an t*at UIGDC an SBGCCI *a no )ateria& interest in t*e present (ase. Se(tion 7<< o.ir)s an t*en rep$ iate t*eir o%&i+ations si)p&' %e(a$se t*e &atter are not &i(ense to o %$siness in t*is (o$ntr'.ir) is estoppe .T. pro(ess.1 T*e prin(ip&e 1-i&& %e app&ie to .ter (ontra(tin+ -it* a . t*at t*e &i(ensin+ re:$ire)ent -as 0never inten e to . t*e Corporation Co e spe(i.. T*e' (onten t*at t*e (apa(it' to s$e is (on.ore $s. s*a&& %e per)itte to )aintain or intervene in an' a(tion. CA. As a +enera& r$&e. a (orporation or+ani.orei+n (orporation. %$t s$(* (orporation )a' %e s$e or pro(ee e a+ainst %e. Bot* t*e appe&&ate an t*e tria& (o$rts re/e(te t*ese (ontentions.ro) t*e SEC an appoint an a+ent .ore P*i&ippine (o$rts or a )inistrative tri%$na&s on an' va&i (a$se o. %$t erre in s$stainin+ t*e Brit o. in Merri& L'n(* 3$t$res v. or its s$((essors or assi+ns.i(a&&' provi es> 0SECTION 7<<. t*e (ase. t*e Motion to Dis)iss.i&e %e. It s*o$& %e stresse .ter *avin+ a(. t*e P*i&ippines. T*e CA (orre(t&' a.orei+n as -e&& as to o)esti( (orporations1? 0one -*o *as ea&t -it* a (orporation o. a (orporation a. 3or t*is reason.orei+n nonJresi ent (orporation not &i(ense %' t*e Se($rities an E2(*an+e Co))ission to o %$siness in t*e P*i&ippines. In or er to s$%/e(t a . An t*e 1 o(trine o.ro) en'in+ t*e .e Co2!t'0 R23456 T*e Petition is part&' )eritorio$s.0 A. t*e Co$rt r$&e > 0T*e r$&e is t*at a part' is estoppe to (*a&&en+e t*e persona&it' o. .ir)e t*e enia& o. *o-ever. petitioners (onten e t*at UIG *a no (apa(it' to s$e.avor o)esti( (orporations -*o enter into so&itar' transa(tions -it* $n-ar' . Bit*o$t s$(* &i(ense.

10 T*is o(trine -as initiate as ear&' as 78@6 in Asia Ban.orei+n (orporation .a(t$a& .prevent a person (ontra(tin+ -it* a .t o. )erit.$rt*er a&&e+es t*at it i not approve t*e assi+n)ent to UIGDC o. ever' a(tion )$st %e prose($te or e. 4%9 Materia& Interest o.ro) :$estionin+ t*e (apa(it' to s$e o. . Moreover. SBMA is estoppe .in no reason at t*is ti)e to /$sti.a%&e %' )$ni(ipa& tria& (o$rts.or t*ese R$&es. Un&ess ot*er-ise a$t*ori. e. -e a+ree -it* t*e CA t*at UIGDC an SBGCCI stan to %e %ene.o$n t*at t*e' *a a&rea ' )a e s$%stantia& invest)ents in t*e pro/e(t. SBMA s*o$& raise t*is iss$e. t*e (ontra(t . R$&e < o. Stan ar Pro $(ts an reiterate in Geor+ Grot/a*n GMBH v. t*e s$%/e(t &ease pre)ises.&' in (ases -*ere s$(* person *as re(eive t*e %ene. its non(o)p&ian(e -it* t*e stat$tes.its o. t*ese (ir($)stan(es. SBMA e. UIG1s ri+*ts t*ere$n er. ri+*ts to UIGDC # is not ne(essari&' %ere. . UIG.orei+n (o)panies not en+a+e in %$siness in t*e P*i&ippines to invo.itte or in/$re %' t*e present s$it an s*o$& %e ee)e rea& parties in interest.. e. In vie.e(tive&' re(o+ni.e &a(. In enterin+ into t*e LDA -it* UIG. (apa(it' to s$e.e its persona&it' an (apa(it' to instit$te t*e s$it %e. -*i(* -as a&&e+e &' an e/e(t)ent s$it (o+ni.ite or in/$re %' t*e /$ +)ent o.%$t in appropriate pro(ee in+s %e. T*e CA )a e a . Co$rt.0 In t*is (ase.in+ Corporation v. Parties in Interest. # A rea& part' in interest is t*e part' -*o stan s to %e %ene. In Anta) Conso&i ate v.in+ a vanta+e o. t*e s$it. *o-ever.ines a rea& part' in interest in t*is )anner> 0SECTION @. t*e 788A R$&es o. SBGCCI an UIGDC Se(tion @. not no. Be are not pers$a e . SBGCCI *a no interest in t*e LDA %e(a$se it on&' erive its ri+*ts . ..' a i. SBMA1s (ontention # t*at it *a not approve UIG1s assi+n)ent o. over.e )anner. Be . o.a$&tin+ &o(a& (o)panies -*i(* are s$e %' $n&i(ense .0 SBMA (onten s t*at UIGDC is not a rea& part' in interest. In &i.o. CA. Isnani an Co))$ni(ation Materia&s an Desi+n v. %e(a$se it -as not priv' to t*e LDA %et-een UIG an SBMA. t*e rea& part' in interest.erent (on(&$sion. it a&so . T*e' a t*at t*e Co)p&aint e)an e t*at respon ents %e restore to t*e possession o. t*e propert' -*en SBMA too. or t*e part' entit&e to t*e avai&s o. t*e Co$rt a&so re/e(te a si)i&ar ar+$)ent an note t*at 0it is a (o))on p&o' o. (*ie.ro) &ater ta. t*e s$it.ro) t*e Deve&op)ent A+ree)ent it *a entere into -it* UIGDC. 4(9 !$ris i(tion Over t*e S$%/e(t Matter Petitioners a&so ar+$e t*at t*e RTC *a no /$ris i(tion over t*e (ase. CA.en e in t*e na)e o. It .ore t*e tria& (o$rt.e %' &a.ore t*e tria& (o$rt.in in+ t*at UIGDC an SBGCCI -ere in possession o.

et pro*i%ition o. T*ere is an $r+ent an per)anent ne(essit' . t*e )i&itar' reservations is $r+ent an ne(essar' an s*a&& not %e restraine or en/oine e2(ept %' an or er iss$e %' t*e S$pre)e Co$rt o. <. i)p&e)entin+ its pro/e(ts. it -as -it*in t*e /$ris i(tion o. RA A@@A pro*i%its on&' s$(* (o$rt or ers -*i(* restrain t*e 0i)p&e)entation o.in+ over t*e propert'.o&&o-s> 0SECTION @7. irre+$&arities a&&e+e &' (o))itte %' SBMA. Respon ents to In/$n(tive Re&ie. a (o)p&ainant is (&ear an $n)ista.a(t. )an ator' in/$n(tion re:$ires t*e per. C&ear&'. Be(a$se it -as a isp$te t*at -as in(apa%&e o. To ivest t*e tria& (o$rt o.ro) ta. T*e ri+*t o. In ee . t*e iss$an(e o. t*e assai&e RTC Or er i not see. (o$rse. a parti($&ar a(t an is +rante on&' $pon a s*o-in+ o.or)er nava& %ase into (ivi&ian $ses. t*e ri+*t is )ateria& an s$%stantia&? @. an in/$n(tive re&ie. p$rs$ant to Se(tion @7 o. Se1o57 I002e-I002/51e o9 t. pe($niar' esti)ation. B*i&e possession -as a ne(essar' (onse:$en(e o. SBMA1s (onversion pro/e(ts. t*e LDA. t*e a)en e Co)p&aint revea&s t*at it so$+*t to en/oin petitioners . In/$n(tion Not Barre %' RA A@@A Petitioners (onten t*at t*e RTC -as %arre . RA A@@A s*o$& not %ar /$ i(ia& s(r$tin' o. an a(t.o&&o-in+ re:$isites> 07. Se(tion @7 o.or)an(e o. t*e assai&e Brit o. t*e s$it.0 T*e Brit iss$e in t*is (ase i not restrain or en/oin t*e i)p&e)entation o.or)an(e o. Moreover.ro) iss$in+ a -rit o. t*e pro/e(ts .a%&e.e $!4t o9 I5>251t4o5 4a9 Present Brit o. Pre&i)inar' In/$n(tion -as iss$e in (onne(tion -it* a isp$te pertainin+ to t*e (orre(t interpretation o. RA A@@A -*i(* provi es as .or t*e -rit to prevent serio$s a)a+e. t*e RTC. it a&&o-e UIG to pro(ee -it* t*e eve&op)ent o. in/$n(tion in t*is (ase. # T*e i)p&e)entation o. t*e P*i&ippines. t*at a$t*orit' is to +ive SBMA $n*a)pere is(retion to isre+ar its (ontra(t$a& o%&i+ations $n er t*e +$ise o.ro) res(in in+ t*e (ontra(t an ta. t*e .or t*e (onversion into a&ternative pro $(tive $ses o. a+ainst an' SBMA a(tion.or t*e (onversion into a&ternative pro $(tive $ses o. Se(tion @7 o.0 Be are not pers$a e .in+ over t*e +o&. t*e . Be a+ree -it* t*e CA t*at t*e present provision is not a %&an. a )an ator' in/$n(tion oes not preserve t*e stat$s :$o @8 an is t*$s )ore (a$tio$s&' re+ar e t*an a )ere pro*i%itive . A (&ose s(r$tin' o. t*e pro/e(ts . In . It )ere&' restraine SBMA . t*e )i&itar' reservations.Be isa+ree. (o$rse p$rs$ant to t*e LDA. T*e )ain iss$e -as -*et*er SBMA (o$& res(in t*e A+ree)ent. 4%9 Ri+*t o.0 Be(a$se it (o))an s t*e per. it -as )ere&' in(i enta&. A -rit o. In/$n(tion an Restrainin+ Or er. t*e +o&. T*e invasion o. to e&a' or *a)per t*e (onversion o. an' o.

T*e Co$rt o. t*e Lease an Deve&op)ent A+ree)ent %et-een UIG Tai-an an t*e SBMA.0 T*$s. Va(ante. In ee . t*e RTC %ase its assai&e Or er )ain&' on t*e +ro$n t*at SBMA1s ta.in no proo.. t*e . -e isa+ree -it* t*e tria& an t*e appe&&ate (o$rts. UIG1s . t*e CA i not )a.. t*e operation an t*e )ana+e)ent o.or SBMA1s e2tra/$ i(ia& ta.t*at *erein respon ents -ere in $%ita%&' entit&e to a )an ator' -rit. In oin+ so. it re&ie on t*e provisions o. a 0(&ear an $n)ista. t*e +o&.ro) o$%t an isp$te. -*i(* -e :$ote ear&ier. (o$rse an its app$rtenan(es is not &e+a&&' /$sti. in -*i(* t*e S$pre)e Co$rt *e& > . In ot*er -or s. t*e LDA -as &a-. t*e propert' -as not.ore+oin+. It re&ie on Nera v.in/$n(tion. t*e (onsi ere vie.or)er is /$sti. it r$&e in t*is -ise> 03ro) a&& t*e .$&&' to t*e F*erein respon entsG possession o.e t*e RTC.eover o. SBMA1s Res(ission o.e(tive&' a pre&i)inar' )an ator' in/$n(tion %e(a$se it 0 ire(te F*erein petitionersG to restore pea(e..e(tive&' r$&e t*at respon ents are entit&e to t*e Brit o. %ot* t*e CA an t*e tria& (o$rt e. t*e +o&.or petitioners1 res(ission o. On t*is point. Man ator' In/$n(tion %e(a$se SBMA1s a(tion -as not in a((or an(e -it* &a-.i(es an ot*er app$rtenan(es s$%/e(t o. t*e (ontra(t an ta. Base on t*e evi en(e a $(e $rin+ t*e *earin+. 788A -as e. t*e iss$an(e o. t*e propert' -it*o$t an' (o$rt or er.$&.ro) o%str$(tin+ or )e &in+ in t*e operation an )ana+e)ent o. t*e LDA. t*e +o&.or(i%&e ta. t*e pre)ises %' t*e FpetitionersG -i&& res$&t to irrepara%&e a)a+es to Frespon entsG. Un er t*e LDA.ation0 .0 3$rt*er)ore. In t*is (ase. an . SBMA res(in e t*e LDA an too.irst assai&e RTC Or er ate O(to%er <. t*ere is &e+a& %asis .ie on&' in a (&ear (ase. . Li. Appea&s *e& t*at t*e e2tra/$ i(ia& res(ission o.0 In a ition.t*at t*e . o not s*o.a%&e ri+*t0 on t*eir part to (ontin$e t*e operation an t*e eve&op)ent o.ai&$re to (o)p&' -it* severa& o.e an' (ate+ori(a& r$&in+ t*at respon ents esta%&is*e a 0(&ear an $n)ista. As -e -i&& no. over t*e possession. t*e app&i(ant *as t*e %$r en o. . its (ontra(t$a& $n erta.eover o. (&$%*o$se.ree . *o-ever. (o$rse.eover o. -e .a%&e ri+*t0 to t*e Brit. t*e propert' -it*o$t an' /$ i(ia& i)pri)at$r. T*e re(or s.e over F%'G t*e FpetitionersG o. . t*e Frespon entsG *ave esta%&is*e a (&ear ri+*t to (ontin$e t*e operation an )ana+e)ent o. s*o-in+ t*at it is entit&e to t*e -rit. t*e Propert' Be(a$se o. Ne(essari&'. (o$rse. 4(9 Le+a&it' o. A((or in+&'. t*e .in+s.eover o.s*o-. %$t t*at t*e e2tra/$ i(ia& ta.e t*at t*ere -as 0no rationa&i.ia%&e. it -as a&so a pro*i%itive in/$n(tion %e(a$se it restraine petitioners . o. it e)p*asi. t*e Co$rt is o. t*e LDA an Ta. t*e isp$te propert'. t*e isp$te propert'. t*e +o&. o. (ontin$e -it**o& in+ o. (o$rse.eover -as 0not &e+a&&' /$sti.ia%&e.

i&&e )onetar' o%&i+ations BU"ER )a' *ave -it* OBNER? an t*is (ontra(t s*a&& %e (onsi ere as -it*o$t .e possession o.e possession t*ereo. t*e Co$rt *e& t*at 0t*is . t*e ot*er part' vio&ates t*e (ontra(t oes not e2 proprio vi+ore (on.e(t a&so . sai . -*ere t*e ot*er part' oes not oppose it. t*e Co$rt in Vira' v.es OBNER to re(over e2traJ/$ i(ia&&'.or -*atever $n.in o.. IAC. t*e &ease propert'.or $pon t*e e2er(ise %' t*e s$%J&essor o. . it s$ppose &' overt$rne t*e 0 ia)etri(a&&' oppose 0 ear&ier r$&in+ in Consin+ v. t*e CA a&so r$&e t*at Consin+ -as a 0/$ i(ia& a%erration. t*e &ease pre)ises in (ase o.o&&o-s> 07@.0 UP v. a (ontra(t$a& provision a$t*ori. Li. t*e (on itions *erein stip$&ate . . a /$ i(ia& eter)ination o. P$&$eta )ere&' a e t*e :$a&i.. a (ontra(t an t*e (on(o)itant re(over' o. %$i& in+ an ot*er i)prove)ents -*i(* are s$%/e(t o. t*e BU"ER to . T*at $pon . In Consin+. t*e iss$e -as 0-*et*er FPGetitioner UP (an treat its .in+ t*e s$%J&essor to ta. p*'si(a& possession o.e t*e va&i it' an t*e e. in -*i(* t*e S$pre)e Co$rt $p*e& a (ontra(t$a& stip$&ation a$t*ori. At t*e o$tset.e possession o.ai&$re to ans-er . t*e P*i&ippines 4UP9 res(in e its Lo++in+ A+ree)ent -it* ALUMCO an s$%se:$ent&' appointe anot*er (on(essionaire to ta. t*e' (oe2ist..e possession a&so e2tra/$ i(ia&&' -*atever persona& properties )a' %e . -*i(* rea s as .ro) sai ate? .ir)in+ t*is r$&in+.o$n -it*in t*e a. T*e CA &o+i( is . (ontra(t$a& %rea(*. It s*o$& %e note a&so t*at t*e CA erre in *o& in+ t*at P$&$eta. it s*o$& %e $n ers(ore t*at t*ese (ases are not 0 ia)etri(a&&' oppose 0 to ea(* ot*er. t*e stip$&ation is &a-. .or)er t*e ri+*t to ta. -*i(* reiterate t*e a%oveJ:$ote r$&in+. o%/e(te to -it*o$t /$ i(ia& intervention an eter)ination.0 A. t*e &an an %$i& in+ i. P$&$eta an Nera re(o+ni.ter t*e pro)$&+ation o. Hen(e.e possession o. possession.0 Be isa+ree.in+ t*e e2tra/$ i(ia& res(ission o. . !a)an re. t*e &an .e Nera. T*at (ase -as p$rporte &' app&i(a%&e %e(a$se it invo&ve a si)i&ar (ontra(t$a& stip$&ation. t*is (ontra(t. P$rs$ant to a stip$&ation si)i&ar to t*at in t*e present (ase.ai&$re o.er $pon t*e .$&.0 Si+ni.a(t. IAC reiterate t*at t*e stip$&ation 0-as in t*e nat$re o. . As ear&ier note . %e(a$se a. t*e (ontra(t is ee)e ter)inate .0 It a&so (ite P$&$eta v.&a-e . t*e Universit' o. .e(t . In . an to ta. t*e iss$es is sti&& ne(essar'. BU"ER a$to)ati(a&&' an irrevo(a%&' a$t*ori.$&.in o. i.or(e an e. Moreover. *is ri+*t to ta. In ..i(ant&'. A stip$&ation entit&in+ one part' to ta.0 Be(a$se P$&$eta -as a s$%se:$ent De(ision. . a reso&$tor' (on ition.e over t*e &o++in+ operation.i&& an' o.. Mariano.a(t.ro) t*e ate o.$&.i(ation t*at t*e stip$&ation 0*as &e+a& e. (ontra(t$a& stip$&ation is not i&&e+a&.e(tivit' o. overt$rne Consin+. P$&$eta. De &os An+e&es is instr$(tive on t*is point.pros(ri%in+ s$(* . %ein+ a &ater (ase. B*ere it is o%/e(te to. t*ere %ein+ not*in+ in t*e &a.oresai pre)ises . a+ree)ent. Consin+ -as reiterate in 7887 in Vira' v. t*e' i not (ate+ori(a&&' r$&e t*at s$(* stip$&ation -as voi .

e P/!t o9 Re0po57e5t0 As ear&ier o%serve .i&e s$it an -ait . instea o.$rt*er note t*at 0i.. re:$ires t*at *e s*o$& e2er(ise $e i&i+en(e to )ini)i. -it*o$t previo$s (o$rt a(tion. t*ere is a rationa&i. (o$rts are t*e . t*e part' in/$re %' t*e ot*er1s %rea(* -i&& *ave to passive&' sit an -at(* its a)a+es a(($)$&ate $rin+ t*e pen en(' o. i not en' or (ontrovert t*e).e over t*e propert'.er p*'si(a& resistan(e. in/$re )$st .(ontra(t -it* ALUMCO res(in e . -*i(* -ere $&' reporte %' SBMA to UIG.0 R$&in+ in . )ateria& %rea(*.ai&$re to en' t*e a&&e+e vio&ations o.i(ation .ie .ore an' /$ i(ia& prono$n(e)ent to t*at e. Moreover. UP. pre&i)inar' )an ator' in/$n(tion..irst .ore ta. B*ere t*e &essees o. t*ere -ere severa& vio&ations o.ie in t*e en..ina& /$ +)ent o.e over t*e propert' in (ase o. %$t it pro(ee s at its o-n ris.ina& /$ +)ent o.0 It .ore. 3irst. +&arin+ -as respon ents1 . t*e propert' even -it*o$t (o$rt intervention.e(t. Ot*er-ise. t*e res(in er.inite&' oes not re:$ire t*at t*e (ontra(tin+ part' -*o %e&ieves itse&. it is .. t*e s$it $nti& t*e . to -*i(* t*e' *ave a (&ear an $n)ista. t*e a+ree)ent.e.or t*e stip$&ation a$t*ori. No V/347 O >e1t4o5 o5 t..ina& ar%iters. t*e' o. t*e ot*er part' enies t*at res(ission is /$sti.or a /$ +)ent %e.in+ e2tra/$ i(ia& steps to prote(t its interest.%' t*e proper (o$rt. an a(t a((or in+&'. it is (&ear t*at t*e s$%/e(t stip$&ation is a&&o-e %' &a-.0 In t*e present (ase. B*ere it is o%/e(te to.e its o-n a)a+es. t*e stip$&ation. t*e LDA.i(ient o%/e(tion to SBMA1s e2er(ise o.ere no va&i or s$. t*e (orrespon in+ (o$rt t*at -i&& (on(&$sive&' an .or(e it %' res(in in+ t*e (ontra(t an re(overin+ possession o. .9 T*e Co$rt a&so note t*at t*e res(ission -as 0provisiona&0 an 0s$%/e(t to s(r$tin' an revie.0 4ita&i(s s$pp&ie . its ri+*ts $n er t*e s$%/e(t stip$&ation.0 It o%serve t*at t*e 0pra(ti(a& e.ation an a &e+a& /$sti. t*e Co$rt *e& t*at a part' (o$& en. res(ission is ren ere -*en t*e &a.e(t o. its stip$&ate ri+*t to e2tra/$ i(ia&&' res(in t*e LDA an ta. B$t t*e &a.or a -rit o.or SBMA1s e2er(ise o. t*e iss$e is sti&& ne(essar'. Respon ents.itse&. t*e A)en e Co)p&aint )ere&' ar+$e t*at t*e ta. t*e CA an t*e RTC. t*e LDA.a%&e ri+*t.e(tive&'.or(e s$(* stip$&ation> 0FTG*e part' -*o ee)s t*e (ontra(t vio&ate )a' (onsi er it reso&ve or res(in e . instit$tin+ s$it.ree to resort to /$ i(ia& a(tion in its o-n %e*a&.. a part' is . an )a' isre+ar t*e sa)e %e. T*$s...ina&&' sett&e -*et*er t*e a(tion ta. t*e stip$&ation F-asG to trans.avor o.en -as or -as not (orre(t in &a-.a$&ter t*e initiative o.ree to en. <= 3or(e or %&oo s*e (annot %e /$sti. an %rin+ t*e )atter to (o$rt.er to t*e e. t*e &essors )a' app&' . 3or it is on&' t*e .in+ SBMA to res(in t*e (ontra(t an to ta. E.or(e)ent o. t*ere. *o-ever. a /$ i(ia& eter)ination o. In ee . In ee . (ontrar' to t*e r$&in+ o.0 It i not (ontrovert t*e +ro$n s . *o-ever.eover -as 0+ro$n e $pon a voi provision o.

respon ents1 stan -as not a va&i or s$.e over t*e propert'. UIG instea in i(ate its -i&&in+ness to (o)p&' -it* a&& its $n erta. respon ents presente t-o -itnesses> Or&an o e &a Masa. pre&i)inar' in/$n(tion. o%/e(tion to t*e )erits o. t*e +o&. De &a Masa testi. SBMA (a&&e its attention to severa& instan(es s*o-in+ (ontra(t$a& %rea(*.t*e re)e ia& )eas$res re+ar in+ t*e )atter. UIG i not (ontrovert its a&&e+e non(o)p&ian(e -it* t*e LDA.or a -rit o. Bit*o$t pre/$ +in+ t*eir ri+*t to o. operations )ana+er o. resistan(e to SBMA1s i)p&e)entation o.eover %' SBMA. %$t a&so to ta. Instea .ie on t*e a&&e+e . 788A. s$stainin+ t*eir (&ai) -o$& $n $&' i)inis* t*e . on Septe)%er 7@. 788A. t*e' *ave o. 788A.ai&e to o so in t*eir app&i(ation . t*eir $n erta. its 0(o))it)ent to $n erta. e(&are UIG in e. SBMA1s a&&e+ations. Vent$ra.or(e o.ro) en. s$(* &a-.ai&e to +ive an' se)%&an(e o.or(i%&e ta. 3in in+ t*e response an t*e e2p&anation $nsatis.e-ise. SBMA.in+. Most si+ni. t*e Co$rt *o& s t*at t*e' .ie t*at respon ents *a investe Q7@ )i&&ion in t*e re*a%i&itation o. t*e' i not even )a.parties to isre+ar it at -i&& -it*o$t an' va&i reason. in its 3e%r$ar' 6.or t*e e&a'. In ee .or t*e app&i(ation .$& stip$&ation an a&&o.er (ontrovertin+ evi en(e $rin+ t*e tria& on t*e )erits. operatin+ o. UIG i not s$%)it an' -ritten e2p&anation.e ane. its ri+*t. Hen(e. In ee .or a -rit o.a$&t an re:$ire it to e2p&ain -*' t*e LDA s*o$& not %e ter)inate .or) *i) o.i(ant. Un er t*e (ir($)stan(es. *o-ever.Se(on . respon ents *ave not s*o-n an' 0(&ear an $n)ista. Respon ent UIG -as +iven severa& opport$nities %' SBMA to e2p&ain t*e a&&e+e vio&ations.i(er to in. T*ir .. SBMA ire(te UIG to va(ate t*e pre)ises an to sett&e its o$tstan in+ a((o$nts. Respon ents. It s*o$& %e $n ers(ore t*at $rin+ a&& t*ese e2(*an+es. 788A &etter.e . Instea o. its (o$nse& (a&&e t*e SBMA (*ie.in+s. in a &etter ate Mar(* A. (o$rse.ere no o%/e(tion to SBMA1s a&&e+ations o. -*i&e A&a%a o testi.a(tor'. i not en' t*e vio&ations o..i(ient o%/e(tion to SBMA1s e2er(ise o. UIG. )an ator' in/$n(tion. SBMA s*o-e t*at it *a a ri+*t not on&' to res(in t*e (ontra(t. Ra')on P.. (ontra(t$a& %rea(*. On t*e ot*er *an . UIG1s (o$nse& i not en' t*e vio&ations an instea apo&o+i. C&ear&'. C&os$re. respon ents )isera%&' . SBMA serve UIG a Noti(e o. neit*er t*e CA nor t*e RTC )a e an' . SBGCCI? an Dani&o A&a%a o.or(in+ t*e (ontra(t$a& stip$&ation. Moreover.e an' o%servation t*at respon ents *a (ontroverte SBMA1s (&ai). UIGDC. -*i(* -ere e2p&aine %' Att'.in no a e:$ate s*o-in+ o. 3ina&&'. In t*is (ase. . In response.. t*e s$%/e(t stip$&ation. in t*e *earin+ . Li.a%&e ri+*t0 to restrain SBMA .0 In its &etter ate Septe)%er =.in in+ t*at t*ere -as no %rea(* on t*e part o. (ontrovertin+ t*e). (o)ptro&&er o. -e .

respon ents s*a&&.0 Be o not s*are t*at vie-. $pon .a+aJRe'es. t*e operation an t*e )ana+e)ent o. (on($r.orei+n or %' &o(a& investors. an t*e assai&e De(ision o. In ee .or)in+ its )an ate to o /$sti(e an to app&' t*e &a.ir)e t*e Brit o. SO ORDERED.. CDAHaE Me&o. 'ie& t*e possession. In t*e )eanti)e. t*e s$%/e(t propert' to SBMA. t*e (ase. )$st %e (o)p&ie -it*..ina&it' o. Appea&s REVERSED an SET ASIDE inso. . t*e Petition is partia&&' GRANTED. (ontra(ts are (*eris*e va&$es ever'-*ere. Pre&i)inar' In/$n(tion iss$e %' t*e tria& (o$rt. 3ar .or tria& on t*e )erits. -*et*er %' . t*e r$&e o.a(ts o.ro) it.to t*e .ree&' entere into.$&ness in t*e per. Vit$+. !!. t*is Co$rt is )ere&' per.prevai&s? an (ontra(ts .or)an(e o.an . &a. In partia&&' reversin+ t*e CA. T*e sai Brit is *ere%' LI3TED an t*e (ase REMANDED to t*e RTC .ait*. It is )ere&' a.orei+n investors t*at -e 0are a +ro$p o. r$&e o. &a.Ep43o62e T*e Co$rt o.. Appea&s e2presse its appre*ension t*at a r$&in+ a+ainst UIG -o$& sen a )essa+e to . /in+oists. P$risi)a an Gon. No (osts. t*is De(ision. t*e Co$rt o.ir)in+ t*e )essa+e t*at in t*is (o$ntr'. !in+ois) is not an iss$e *ere. BHERE3ORE.ar as it a.

a&.eat p$%&i( (onvenien(e. B$t petitioner asserte t*at t*e sai a)o$nt represente *is )one' p&a(e)ent in CCCLC as s*o-n %' @< (*e(. S$%se:$ent&'. Re'noso. in or er to %oost t*e %$siness a(tivities o. 3irst Instan(e o. an a&ias o.e .i(ia&s o. D$e to t*e ne. e2e($tion.77. In t*e )eanti)e. *e re. its parent. *e -as is)isse . CCCJLC iss$e to *i) its interestJ%earin+ pro)issor' notes. -*erein it s*a&& *o& <CE e:$it'. 78=C. T*e tria& (o$rt ren ere a e(ision in . eposite *is persona& .&e t*e . Conse:$ent&'. respon ents. is(o$nt an Hor assi+n its re(eiva%&es to CCC. 2. a s$%si iar' (orporation are so (ontro&&e %' t*e )ot*er (orporation to t*e e2tent t*at it %e(o)es an instr$)ent or a+ent o.ran(*ise (o)pan' in L$e. t*e CCC -ere esi+nate as resi ent )ana+ers o. t*e Co))er(ia& Cre it Corporation 4CCC9 a . Ri.i&e a Motion . t*is is(o$ntin+ arran+e)ent -as is(ontin$e p$rs$ant to t*e soJ(a&&e 0DOSRI R$&e0 o. Hen(e. T*e Co$rt r$&e t*at t*e e.inan(in+ an invest)ent .restri(tions. E2e($tion -as iss$e . t*e . a&&e+in+ t*at petitioner e)%e.. t*e petitioner. CCC.s -*i(* *e iss$e to t*e sai (o)pan'.no-n as t*e Genera& Cre it Corporation 4GCC9. %e(a)e e)p&o'ees o. e(i e to or+ani. sto(. T*e e(ision %e(a)e . CCCJE:$it'. CCCJLC. RE#NOSO. B*i&e.i(tion app&ies on&' -*en s$(* . prote(t . CCC %e(a)e . Mean-*i&e.on Cit' t*en iss$e an Or er ire(tin+ GCC to . in 78=<.' -ron+. o.i(tion is $se to e.. G. a((or in+&'. t*e .*is sa&aries an a&&o-an(es .ro) *is e)p&o')ent %' CCCJE:$it'. &ON.i(ers. Ho-ever. GCC a&&e+e t*at it -as not a part' to t*e (ase.. -*i(* pro*i%ite t*e &en in+ o. )one' -it* pre&i)inar' atta(*)ent -as instit$te a+ainst *i) %' CCCJLC %e.. in(&$ in+ petitioner Re'noso.ore t*e t*en Co$rt o.ir). COURT OF APPEALS an GENERAL CREDIT CORPORATION. No0.ie t*e or er o. Appea&s -*i(* n$&&i. Petitioner Bi%iano O. T*$s.airs o.or) CCCJE:$it' Corporation.or s$) o. E)p&o'ees o.ran(*ise (o)panies.ense o. E2e($tion.on Cit' . *o-ever. (orporate . petitioner.. t*e s$%si iar'. CCC e(i e to .ro) CCCJE:$it'. L$e. S#NOPSIS So)eti)e in t*e ear&' 78DCs. IV.$n s %' (orporations to its ire(tors.erent parts o.K8<. t*e tria& (o$rt. T*e Re+iona& Tria& Co$rt o.or (ertiorari -it* t*e Co$rt o..$n s it t*e (o)pan'> In ret$rn. Petitioner.R. IV -as esi+nate as t*e resi ent )ana+er o.ina& an .airs o. t*e Centra& Ban. CCCJLC entere into an e2(&$sive )ana+e)ent (ontra(t -it* CCC -*erein it -as stip$&ate t*at CCCJLC s*a&& se&&. t*e o(trine o. /$sti. 11+124?25 No8em e! 22. CCCJLC a)o$ntin+ to P7. . CCCJLC.FIRST DIVISION BIBIANO O..i&e its (o))ent on petitioner1s )otion.<CC.en (ri)e. pier(in+ t*e vei& o.setJ$p. t*e (o$ntr'.ra$ or e.no-n as CCCJLC. vs. t*e CCC *a o)inant (ontro& o.ran(*ise (o)panies in i. t*e tria& (o$rt or ere t*e iss$an(e o. a Brit o. severa& o.or A&ias Brit o. pro)ptin+ petitioner to . *e (ontin$e to %e t*e Resi ent Mana+er o. 3a(t$a&&' an &e+a&&'. B$t even -*en t*ere is o)inan(e over t*e a. On A$+$st 7K. separateness -i&& %e isre+ar e -*ere t*e %$siness a.avor o. Un er t*e ne. a (o)p&aint . -rit o. t*is petition..*o& ers an ot*er persons -it* re&ate interests t*erein. t*e /$ +)ent re)aine $nsatis.$n s o. GCC instit$te a petition . t*e .ie .

-e state t*at t*is Co$rt *as pier(e t*e vei& o.ro) t*e )e)%ers or sto(. . 2. It is an arti. It -as evo&ve to )a. petitioner. *$+e a)o$nts o. attri%$tes.er o. t*e vei& -it* -*i(* t*e &a(overs an iso&ates t*e (orporation . t*e a(*ieve)ent or per. .i(tion is $se as an $n. (orporate assets as part o.e possi%&e t*e a++re+ation an asse)%&in+ o. t*e e)p&o'er. &a-. t*e (o$ntr'.i(tion is $r+e as a )eans o. # A (orporation is an arti. In 3irst P*i&ippine Internationa& Ban.naver' or (ri)e.i(ia& %ein+ (reate %' operation o. T*ere -ere ot*er in i(ations in t*e re(or -*i(* attest to t*e app&i(a%i&it' o.*o& ers -*o (o)pose it -i&& %e &i.. or to s*ie& it . In a ition.or its (onsi eration )ere&' as an a++re+ation o.e(tion o. to avoi /$ +)ent (re it? to avoi in(&$sion o. in ivi $a&s. CCCJLC. CCCJLC.ra$ or an i&&e+a& a(t or as a ve*i(&e . (apita& $pon -*i(* %i+ %$siness epen s.-it* a persona&it' separate an istin(t . An' pier(in+ o.. s$((ession an t*e po-ers.or t*e evasion o.ro) t*at o. an' ot*er &e+a& entit' to -*i(* it )a' %e re&ate . T*e (orporate .a(tor in t*e %$siness &i.ro) e%t? -*en )a e $se o. as t*e resi ent )ana+er o.air o%/e(tives or ot*er-ise to s*ie& t*e). A (o$rt /$ +)ent %e(o)es $se&ess an ine. t*e Co$rt -i&& not *esitate to $se its s$pervisor' an a /$ i(ative po-ers -*ere t*e (orporate .*as to &oo.e %' &aor in(i ent to its e2isten(e.i(ia& persons it *as (reate . Appea&s. t*e (orporate vei& *as to %e one -it* (a$tion. as a s*ie& to perpetrate . stat$tes. /$sti(e. (are.%$siness operations o. t*e )ot*er (orporation. t*ose -*o (o)pose it even as it en/o's (ertain ri+*ts an (on $(ts a(tivities o.e(ts o. t*e &a. perpetratin+ a .i(tion *as to %e isre+ar e -*en ne(essar' in t*e interest o. is p&a(e %e'on t*e &e+a& rea(* o.ro) t*e (o))an s o.. an properties e2press&' a$t*ori. in t*is (ase CCC as a )ot*er (orporation. a )onopo&' or +enera&&' t*e perpetration o.ro) t*ose o. t*e (ir($)vention o. # Pre(ise&' %e(a$se t*e (orporation in s$(* a preva&ent an o)inatin+ . CCC.air evi(e to a(*ieve an ine:$ita%&e res$&t. na)e&'> t*e $nit' o..e o.ro) t*e e. (orporate . vs.i(ia& %ein+ investe %' &a. ID. t*e /$ +)ent (re itor. po-ers %' t*ese arti. a e(e ent? to avoi &ia%i&it' arisin+ .$&&' into t*e e2er(ise o.e(tive i. an (ontro&? t*e trans. . CCC appointe its o-n e)p&o'ee. *avin+ t*e ri+*t o.% PIERCING T&E VEIL OF CORPORATE ENTIT#% CORPORATE FICTION &AS TO BE DISREGARDED $&EN NECESSAR# IN T&E INTEREST OF JUSTICE. e.$n s to s$it t*eir in ivi $a& (orporate (onvenien(es? an t*e o)inan(e o. t*e persons (o)posin+ it as -e&& as . an e2istin+ o%&i+ation. t*e i entit' r$&e in t*is (ase.ra$ an Hor (on.te to a&&o. Co$rt o. nonJ epen en(e on t*e &ives o.% ID. a (o$rt e(ision. po&i(' an pra(ti(e %' t*e )ot*er (orporation ins$re t*at CCCJLC -as an instr$)enta&it' or a+en(' o.0 A&so in t*e a%oveJ(ite (ase. Ho-ever. T*e e(ision o. eva e (ontra(ts an o%&i+ations. interests.$se &e+iti)ate iss$es? or to pro)ote $n. )ana+e)ent. nat$ra& persons. (ERCANTILE LA$% CORPORATION LA$% CORPORATION% DEFINED. T*e e2(&$sive )ana+e)ent (ontra(t ins$re t*at CCCJ LC -o$& %e )ana+e an (ontro&&e %' CCC an -o$& not eviate . Appea&s -as REVERSED an SET ASIDE. a)on+ ot*ers. et a&. t*e estate o.i(tion in n$)ero$s (ases -*ere it -as $se . It a&so *as t*e a vanta+e o. S#LLABUS 1. -e *e& > 0B*en t*e .ra$ (re itors. t*e Co$rt o.

ro) t*e (o))an s o. (orporate . a (orporation %ein+ a /$ri i(a& entit' -it* a istin(t an separate persona&it' -as envisa+e . ot*er . an -*en t*e (orporate .i(tion is $se to perpetrate . -*i(* &ater %e(a)e respon ent Genera& Cre it Corporation.ense o. CCC appointe its o-n e)p&o'ee. prote(t . an %ene. t*e s$%si iar'.ait* an *onest %$siness /$ +)ent..ra$ or pro)ote in/$sti(e.ra$ or e. t*e i entit' r$&e in t*is (ase. -*en t*e (orporate evi(e is $se %' t*e parent to avoi its &ia%i&it' .steps in to re)e ' t*e pro%&e). B$t -*en t*e )ot*er (orporation an its s$%si iar' (ease to a(t in +oo .ie )e)%ers an parti(ipants o. /$sti.eat p$%&i( (onvenien(e. As petitioner . its parent.% SEPARATE CORPORATE C&ARACTER OF (OT&ER CORPORATION AND ITS SUBSIDIAR# CONTINUES FOR LEGITI(ATE OBJECTIVES.' -ron+.% IDENTIT# RULE% APPLIED IN CASE AT BAR . T*e e2(&$sive )ana+e)ent (ontra(t ins$re t*at CCCJLC -o$& %e )ana+e an (ontro&&e %' CCC an -o$& not eviate . T*ere are ot*er in i(ations in t*e re(or -*i(* attest to t*e app&i(a%i&it' o.% ID. invest)ent an . a s$%si iar' (orporation are so (ontro&&e %' t*e )ot*er (orporation to t*e e2tent t*at it %e(o)es an instr$)ent or a+ent o..$n s to s$it t*eir in ivi $a& (orporate (onvenien(es? an t*e o)inan(e o. i. petitioner. CCCJLC. CCC. &O$EVER. an (ontro&? t*e trans. Asi e . t*e o(trine o.ation o.ter *is assi+n)ent to t*e s$%si iar' (orporation. Petitioner1s esi+nation as 0resi ent )ana+er0 i)p&ies t*at *e -as p&a(e in CCCJLC %' a s$perior a$t*orit'.i(tion app&ies on&' -*en s$(* . Ho-ever.% ID. Co))er(ia& Cre it Corporation -as inten e to p$%&i(&' i enti. it s*o$& not %e $se as a s$%ter. ID. T*ere. t*e ot*er &e+iti)ate a vanta+es. t*e CCC +ro$p o. t*e )ot*er (orporation. CCCJLC. )ana+e)ent.airs o.$+e to (o))it in/$sti(e an (ir($)vent t*e &a-. CCC.ran(*ise (o)pan' -ere or+ani. t*e %$siness operations o.er o. Petitioner an t*e ot*er per)anent e)p&o'ees o.or t*e a++r$pation o. it is pier(e in or er to re)e ' in/$sti(e. t*at t*e &e+a& . t*e a%i&it' to (over )ore territor' an pop$&ation. a(tivities %est e(entra&i. petitioner (ontin$e to re(eive *is sa&aries.e s$(* as CCCJNort* Mani&a an CCCJCa+a'an Va&&e'. t*e sa)e na)e o. t*e CCC *a o)inant (ontro& o.e. Nationa& La%or Re&ations Co))ission.inan(in+.% ID.its . t*e e(entra&i.ore.airs o.or (onvenien(e an to serve /$sti(e.ro) CCCJL$e. t*e s$%si iar'.% APPLIES ONL# $&EN SUC& FICTION IS USED TO DEFEAT PUBLIC CONVENIENCE. @ T*e e. B*en t*at *appens. t*e (orporate (*ara(ter is not ne(essari&' a%ro+ate . In . a&&o-an(es.% ID. IT IS PIERCED IN ORDER TO RE(ED# INJUSTICE.ation o. separateness -i&& %e isre+ar e -*ere t*e %$siness a.ro) CCC. ID.*. na)e&'> t*e $nit' o. even a. t*e &a. T*e or+ani.' it as a (o)ponent o. Be state in To)as Lao Constr$(tion v..or &e+iti)ate o%/e(tives. CCCJLC -ere :$a&i. ID. (apita&. PROTECT FRAUD OR DEFEND CRI(E.e . . B$t even -*ere t*ere is o)inan(e over t*e a. It (ontin$es . 5.% ID.on Cit'. JUSTIF# $RONG. as t*e resi ent )ana+er o. interests. Not on&' t*at. t*e E)p&o'ees Pension P&an o.i(tion o.i(tion is $se to e. po&i(' an pra(ti(e %' t*e )ot*er (orporation ins$re t*at CCCJLC -as an instr$)enta&it' or a+en(' o.en (ri)e.a(t. # It is o%vio$s t*at t*e $se %' CCCJLC o. 4. # 3a(t$a&&' an &e+a&&'.or &e+iti)ate o%&i+ations o. In a ition to t*e e2(&$sive )ana+e)ent (ontra(t. pier(in+ t*e vei& o. an t*e se($rin+ o. (o)panies en+a+e in one an t*e sa)e %$siness.% ID. s$%si iar' (orporations as -*at -as one *ere is $s$a&&' resorte to .&i(te in t*is (ase. s$(* as t*at in.

In $stria& Re&ations. *as %een . a .erent parts o. IV -as esi+nate as t*e resi ent )ana+er o. /$sti(e are not serve i. T*is p$rpose s*o$& not %e ne+ate %' an inapp&i(a%&e an -ron+ $se o.. -*i(* reverse t*e separate e(isions o. t*e en o. t*e CCC -ere esi+nate as resi ent )ana+ers o. !ose&ito D. Re'noso. Co$rt o. a (orporate . t*e . t*e Co))er(ia& Cre it Corporation 4*ereina.i(tion -*ose vei& t*e present (ase (o$& . Appea&s ate !$&' A. CCCJLC.% COURT JUDG(ENT BECO(E USELESS AND INEFFECTIVE IF T&E E(PLO#ER IS PLACED BE#OND T&E LEGAL REAC& OF T&E JUDG(ENT CREDITOR% CASE AT BAR . Li-ana+. t*e .ran(*ise (o)panies in i. +. L$e.inan(ia& o%&i+ation o. is p&a(e %e'on t*e &e+a& rea(* o.on Cit' 4*ereina.i(tion o. E)p&o'ees o. -as even veri. CCCJLC entere into an e2(&$sive )ana+e)ent (ontra(t -it* CCC -*ere%' t*e &atter -as +rante t*e )ana+e)ent an . it %e(o)es a *an ' e(eption to avoi a /$ +)ent e%t an -or. %$siness invo&vin+ a sin+&e transa(tion pro(ess. Co$rt o.$&& (ontro& o. 7886.inan(e t*e operations o. CCCJLC *a no o. # Parap*rasin+ t*e r$&in+ in C&aparo&s v.is t*e (onso&i ate e(ision o.i(e spa(e. v. %ot* CCC an CCCJLC -ere en+a+e in t*e sa)e prin(ipa& &ine o. t*e %$siness a(tivities o. its o-n. %e pier(e as it -as e&i%erate&' an )a&i(io$s&' esi+ne to eva e its .i&e t*e (o)p&aint an a)en e (o)p&aint -ere a&& inJ*o$se &a-'ers o. T*e (o)p&aint in Civi& Case No. t*e . L$e. -*erein it s*a&& *o& t*irt' per(ent 4<CE9 e:$it'.e to p$t an en to (ontrovers'. T*e s$%si iar' so& . Nationa& La%or Re&ations. A (o$rt /$ +)ent %e(o)e $se&ess an ine. a((o$ntant an a$ itor o. T*e t-o (orporations a&so s*are t*e sa)e o. its e)p&o'ees. T*e e(ision raise to $s . DECISION #NARES?SANTIAGO. t*e (orporate . . CCC sin(e 78A7. a. it is ver' o%vio$s t*at respon ent 0see.no-n as t*e Co))er(ia& Cre it Corporation o. T*e testi)on' o. is(o$nte . t*e (orporate vei&. CCC.e(tive i.stresses. instit$te %' CCCJLC. .ie %' t*e ire(torJrepresentative o. CCC .o$n entit&e to positive re&ie. T*e &a-'ers -*o . Pasi+ Cit' an t*e Re+iona& Tria& Co$rt o.is an invitation to )$&tip&i(it' o. Appea&s. ID.ter.. an s*o$& . Petitioner Bi%iano O.ran(*ise (o)panies. or assi+ne its a((o$nts re(eiva%&es to CCC. &iti+ation. Un er t*eir is(o$ntin+ arran+e)ents.or revie. CCC.or revie.e .. 0CCC09. t*e .on Cit'.% ID. t*e Co$rt o. reiterate in Con(ept B$i& ers In(. LJ<CK=<.on Cit' in t-o (ases %et-een petitioner Re'noso an respon ent Genera& Cre it Corporation 4GCC9. t*e e)p&o'er.ter protra(te &iti+ation.. J pAssai&e in t*is petition .$n(tion o.ter. an in/$sti(e..s t*e prote(tive s*ie& o.inan(in+ an invest)ent .0 I.% ID.ir). Co$rts *ave %een or+ani.i(e o. . 0CCCJ LC09. t*e /$ +)ent (re itor -*o. s*o-s t*e pervasive an intensive a$ itin+ .$rt*er &iti+ation is en(o$ra+e -*en t*e iss$e is eter)ina%&e %ase on t*e re(or s. So)eti)e in t*e ear&' 78DCs. CCC over CCCJLC. t*e (o$ntr'. As -e state in Is&a)i( Dire(torate vs.ran(*ise (o)pan' in L$e. e(i e to or+ani. in t*is (ase CCC as a )ot*er (orporation.or)er. t*e Re+iona& Tria& Co$rt o.i(tion is s$staine .

petitioner. sto(. t*e Co$rt .ore(&ose . %e(a)e :$a&i.ie )e)%ers o. eposite *is persona& . an -as &ater .en ant. T*e %$siness a(tivities o.or t*e p$r(*ase o.ter.<CC. 3irst Instan(e o.ro) CCCJ E:$it'. Petitioner. a -*o&&'Jo-ne s$%si iar'. 7@ Ma(opa Street.77.$n s %' (orporations to its ire(tors.*is sa&aries an a&&o-an(es . On a((o$nt o. to+et*er -it* t-o seats in t*e &atter1s Boar o. Ri. Un er t*e ne. sai (o)p&aint is *ere%' DISMISSED. T*e (o)p&aint -as s$%se:$ent&' a)en e in or er to in(&$ e Hi e&ita N$va&. %e(a)e e)p&o'ees o. In ret$rn.i(ia&s o.CC -as $se .ro) epositors -*o are iss$e interestJ%earin+ pro)issor' notes. *e re. a&t*o$+* an e)p&o'ee o. 4*ereina.$n s .. t*e DOSRI R$&e.restri(tions i)pose %' t*e Centra& Ban. CCCJLC. CCCJE:$it'. L$e. In *is a)en e Ans-er.CCC. LJ<CK=<. *o-ever. CCCJLC iss$e to *i) its interestJ%earin+ pro)issor' notes. t*e Co))er(ia& Cre it Corporation E)p&o'ees Pension P&an. p$rs$ant to t*e !$ i(iar' Reor+ani. t*e e(reta& portion o. Va&&e Ver e I. .or) CCC E:$it' Corporation. B*i&e petitioner (ontin$e to %e t*e Resi ent Mana+er o.ete as Civi& Case No. a (o)p&aint .s -*i(* *e iss$e to t*e sai (o)pan'.<CC. severa& o. 3$rt*er)ore. Dire(tors. S$%se:$ent&'. 78=C. On !an$ar' 76. Bran(* =D. O$t o.&e t*e .in s t*e (o)p&aint -it*o$t )erit. CCCJLC an asserte t*at t*e s$) o. o(.ation A(t o. -as instit$te in t*e t*en Co$rt o. 78=C. CCCJLC. T*e (o)p&aint a&&e+e t*at petitioner e)%e.77 represente *is )one' p&a(e)ents in CCCJLC.e. T*e propert' -as )ort+a+e to CCC. CCCJLC. o.erre to t*e Re+iona& Tria& Co$rt o. as a part' e. Pasi+ Cit'. T*e a)o$nts eposite are t*en &oane o$t to vario$s %orro-ers.*o& ers an ot*er persons -it* re&ate interests t*erein. a *o$se an &ot &o(ate at No. t*is a)o$nt. .setJ$p. petitioner enie *avin+ $n&a-. t*is is(o$ntin+ arran+e)ent -as is(ontin$e p$rs$ant to t*e soJ(a&&e 0DOSRI R$&e. po&i(' %' virt$e o. petitioner oversa. as s*o-n %' t-ent'Jt*ree 4@<9 (*e(. T*e (ase -as s$%se:$ent&' trans. in(&$ in+ petitioner Re'noso. On A$+$st 7K. Co))er(ia& Cre it Corporation. in or er to %oost t*e %$siness a(tivities o.$n s o..on Cit'.erre its t*irt' 4<CE9 per(ent e:$it' in CCCJLC. CCCJLC. P7.$&&' $se .K8<. -*i(* states> Pre)ises (onsi ere . t*e tria& (o$rt ren ere its e(ision.i(ers.0 pro*i%itin+ t*e &en in+ o. .a& %' CCCJLC a+ainst petitioner.$n s in t*e (o)pan'. CCCJLC pertain to t*e a((eptan(e o. CCCJLC an s$pervise its e)p&o'ees. CCCJLC a)o$ntin+ to P7. petitioner1s -i. -*o *a in t*e )eanti)e %een is)isse .Un er t*e (ontra(t.$n s o. )one' -it* pre&i)inar' atta(*)ent. As Resi ent Mana+er o. 0CCCJ E:$it'09.t*e operations o. A((or in+&'. at &east PD<C. to -*i(* CCC trans. CCCJLC s*a&& se&&. is(o$nt an Hor assi+n its re(eiva%&es to CCC.or s$) o. as -e&& as a&& e)p&o'ees o. 78=K. CCC e(i e to .K8<.ro) *is e)p&o')ent %' CCCJE:$it'. CCCJE:$it'.. t*e ne.

ran(*ise (o)panies in(&$ in+ CCCJLC -ere e(&are as one (orporation.ere *$)i&iation an )enta& an+$is*. .e t*e e(ision o.B' reason o.or attorne'1s . L$e. 76E per ann$) .i&e *is rep&'.0 -*ere it -as e(&are t*at Genera& Cre it Corporation. entit&e .CCC. -*i(* t*e Co$rt .CCC.. t*e ate o.ina& an . 78=7.ie . 78AA. !$ +)ent De%tor. Respon ents. (orporation is *ere%' or ere > a9 to pa' e. E2e($tion. a Brit o. Petitioner . 7E per )ont* . @K=7. -it* re.A<=. SO ORDERED.ees.en ant $n er t*e pro)issor' note o. E2e($tion -as iss$e on !$&' @6.or A&ias Brit o. . P7=K. in 78=<.CC as e2e)p&ar' a)a+es? e9 to pa' e. e+ra ation. CCCJE:$it' an ot*er . t*e e(ision %e(a)e . e2e($tion. T*e appea& o. 3$rt*er)ore.D<8. in t*e s$) o.=@ p&$s interest t*ereon at t*e rate o.en over %' CCC.CCC. t*e Re+iona& Tria& Co$rt o.6AC. 78=C $nti& .statin+ t*at t*e CCCJLC is an a /$n(t instr$)enta&it'.$&&' pai ? . On t*e (o$nter(&ai).i&e a Spe(ia& Appearan(e an Opposition on De(e)%er @.CC as an .on Cit' -as is)isse . 78AA $nti& .en ant P<. On Nove)%er @@. petitioner invo. a&&e+in+ t*at t*e possession o. P8. e.or a&ias -rit o.. Ra)oso. = a&&e+in+ t*at it -as not a part' to t*e (ase.en ants P7CC.en ants P@CC.en ant Bi%iano Re'noso IV s$. et a&. Co))er(ia& Cre it Corporation o. Petitioner.$&&' pai ? %9 to pa' e. sai (o)p&aint.or E2a)ination to Co$rt.on Cit' iss$e an Or er ire(tin+ Genera& Cre it Corporation to . et a&. an to Brin+ 3inan(ia& Re(or s . A)en e Ans-er. 78=8.ees? p&$s (osts o. 7887.or .CC p&$s 76E interest per ann$) . an t*ere. t*e s$it.en ant t*e s$) o. Ho-ever. Hen(e.CCC. CCC %e(a)e .i&e an Opposition to petitioner1s )otion.$&&' pai ? (9 to pa' e.i&e its (o))ent on petitioner1s )otion .en ants P@K.CC as )ora& a)a+es? 9 to pa' e..ro) O(to%er @.CC p&$s pena&t' at t*e rate o. L$e.. t*e Se($rities an E2(*an+e Co))ission in SEC Case No. CCCJLC .ore petitioner s*o$& ire(t *is (&ai) a+ainst CCCJLC an not Genera& Cre it Corporation. its pre)ises an re(or s *a %een ta. pro)ptin+ petitioner to ..i&e a Motion . E2a)ination o. t*e /$ +)ent re)aine $nsatis. on t*e ot*er *an .i&in+ o.ro) t*is a)o$nt )a' %e e $(te t*e re)ainin+ o%&i+ation o. A Genera& Cre it Corporation . Petitioner vers$s Genera& Cre it Corp. 7887.et . a((or in+&'.in s to %e )eritorio$s.*is appea&. e. p&ainti. 0Ave&ina G. O(to%er @6.ro) De(e)%er @6. $nti& . CCC. Mean-*i&e.ai&$re to pa' o(. (on $it an a+en(' o.no-n as t*e Genera& Cre it Corporation. Bot* parties appea&e to t*e t*en Inter)e iate Appe&&ate Co$rt.ro) !$ne @6.

-*i(* rea s> BHERE3ORE. 788@. sai petitioner0.na)e o.ro) .ro) (on $(tin+ an a$(tion sa&e 4on e2e($tion9 o. t*e Genera& Cre it Corporation %' t*e ep$t' s*eri. o.en ant s*eri. In *is Opposition to t*e O)ni%$s Motion. Tanan+(o. &ev'in+ 4$pon9 an se&&in+ on e2e($tion ot*er properties o. @AK7= -e e(&are t*e iss$e o.ore t*e Re+iona& Tria& Co$rt o. provi e t*at 0t*e respon ents an t*eir representatives are *ere%' en/oine . o.ro) (onso&i atin+ o-ners*ip over t*e &an an . @AD=<. @AK7= 7K an CAJG. 7< 3e%r$ar' 788@ in Civi& Case No. No a)a+es an no (osts.or (ertiorari an a((or in+&' NULLI3" an SET ASIDE. petitioner1s properties as -e&& as initiatin+ si)i&ar a(ts o. @AD=<. 7887. o(. as )o i. on 3e%r$ar' @7.or (ertiorari -it* t*e Co$rt o.On De(e)%er 8. On De(e)%er @C. On !$&' A.R.or an' &ia%i&it' $n er t*e e(ision in Civi& Case No. T*e Re+iona& Tria& Co$rt o. L$e. %' -a' o. On Mar(* K.ie %' t*e -or s in parent*esis. Appea&s ren ere a e(ision in t*e t-o (onso&i ate (ases.or *avin+ %een iss$e in e2(ess o.R. /$ris i(tion.$rt*er &ev'in+ on ot*er properties o. e2e($tion. T*e in/$n(tion t*$s +rante .on Cit' enie t*e O)ni%$s Motion. t*e Re+iona& Tria& Co$rt o. t*e (o$rt -as erroneo$s.ete as CAJG. 7886. -e +rant t*e petition . SP No. in *is (apa(it' as Dep$t' S*eri.on Cit'.i&e an O)ni%$s Motion. it iss$e an Or er ire(tin+ t*e iss$an(e o. Genera& Cre it Corporation to ans-er . D7AAA s*a&& *ave %een . @K=7 -as sti&& pen in+ appea&. Pasi+.ete as Civi& Case No. an t*at e. . in SP No.. Tit&e No. e2e($tion. Genera& Cre it Corporation instit$te t-o 4@9 petitions . T*$s. an )aintainin+ t*at t*e &ev' on properties o. A Apri& 788@ -*i(*. an a&ias -rit o. t*e ispositive portion o. t*e Or er o. t*e respon ent (o$rt1s re.ina&&' ter)inate . Genera& Cre it Corporation instit$te a (o)p&aint %e. LJ<CK=<. Pasi+ a+ainst Bi%iano Re'noso. 788@.$sa& to iss$e a restrainin+ or er as *avin+ %een ren ere )oot %' o$r Reso&$tion o. &an &o(ate in Pasi+. @886C %e e(&are n$&& an voi . petitioner insiste t*at Genera& Cre it Corporation is /$st t*e ne. 788@. Co))er(ia& Cre it Corporation? *en(e.i(ate o. Bran(* 7DA. s*a&& re)ain in . SP No.. L$e. t*e Re+iona& Tria& Co$rt o.. Appea&s. T*ese (ases -ere &ater (onso&i ate . Genera& Cre it Corporation . LJ<CK=< as -e&& as an' ot*er or er or pro(ess t*ro$+* -*i(* t*e petitioner is )a e &ia%&e $n er t*e /$ +)ent in sai Civi& Case No. Previo$s&'.er Certi. In SP No. Genera& Cre it Corporation an Co))er(ia& Cre it Corporation s*o$& %e treate as one an t*e sa)e entit'. IV an E +ar o C. o(. a&&e+in+ t*at SEC Case No. t*e Co$rt o. pra'in+ t*at t*e &ev' on its par(e& o. in/$n(tive re&ie. i not iss$e a te)porar' restrainin+ or er.or(e $nti& Civi& Case No. 7887. LJ<CK=<. Metro Mani&a an (overe %' Trans. %e en/oine .on Cit' or ere t*e iss$an(e o. D7AAA. On 3e%r$ar' 7<. an a&ias -rit o. . L$e..

DECLARING THAT COMMERCIAL CREDIT CORPORATION O3 LUEPON CIT" IS THE ALTER EGO. It is an arti. @AD=< BHEN IT NULLI3IED AND SET ASIDE THE 7< 3EBRUAR" 788@ ORDER AND OTHER ORDERS OR PROCESS O3 BRANCH =D O3 THE REGIONAL TRIAL COURT O3 LUEPON CIT" THROUGH BHICH GENERAL CREDIT CORPORATION IS MADE LIABLE UNDER THE !UDGMENT THAT BAS RENDERED IN CIVIL CASE NO.or)er&' CCC. respon ent raises (orporate . (orporate entit' in or er to eter)ine i.e possi%&e t*e a++re+ation an asse)%&in+ o. THE HONORABLE COURT O3 APPEALS ERRED IN CAJG. attri%$tes.ore. )a' %e *e& &ia%&e . it )$st %e stresse t*at t*ere is no &on+er an' (ontrovers' over petitioner1s (&ai)s a+ainst *is . T*e &atter (onten s t*at it is a (orporation separate an istin(t . t*ere. petitioner.ense. In s*ort. t*is petition . nonJ epen en(e on t*e &ives o. *$+e a)o$nts o. It -as evo&ve to )a.ina& an e2e($tor'.o&&o-in+ ar+$)ents> 7.R SP NO. nat$ra& persons. . t*ere. inas)$(* as t*e e(ision in Civi& Case No. THE HONORABLE COURT O3 APPEALS ERRED IN HOLDING THAT GENERAL CREDIT CORPORATION IS A STRANGER TO CIVIL CASE NO. CCCJLC. LJ<CK=< o.ore. A (orporation is an arti. . Hen(e.ro) t*ose o.on Cit' *as &on+ %e(o)e .e %' &a. It a&so *as t*e a vanta+e o. L$e. INSTRUMENTALIT". T*e petition is i)presse -it* )erit. LJ <CK=<. CCCJLC. T*e on&' iss$e.' t*e )onetar' /$ +)ent in . (apita& $pon -*i(* %i+ %$siness epen s. an' ot*er &e+a& entit' to -*i(* it )a' %e re&ate .avor o. pier(in+ t*e vei& o. Genera& Cre it Corporation.or in(i ent to its e2isten(e. petitioner )a' %e e2e($te a+ainst respon ent Genera& Cre it Corporation. THE HONORABLE COURT O3 APPEALS ERRED IN CAJG. Hen(e.ro) t*at o. t*ose -*o (o)pose it even as it en/o's (ertain ri+*ts an (on $(ts a(tivities o. &a-.SO ORDERED.i(tion as its e. At t*e o$tset. t*e persons (o)posin+ it as -e&& as . @. *avin+ t*e ri+*t o.R SP NO. CONDUIT OR AD!UNCT O3 COMMERCIAL CREDIT CORPORATION AND ITS SUCCESSOR GENERAL CREDIT CORPORATION. INSTEAD O3. s$((ession an t*e po-ers.an(*ore on t*e .i(ia& %ein+ investe %' &a. LJ<CK=<. an properties e2press&' a$t*ori.or revie. -e are ne(essari&' (a&&e $pon to app&' t*e o(trine o.-it* a persona&it' separate an istin(t . to %e reso&ve in t*e instant petition is -*et*er or not t*e /$ +)ent in . t*e Re+iona& Tria& Co$rt o. <. its properties )a' not %e &evie $pon to satis.or t*e o%&i+ations o.avor o.or)er e)p&o'er.i(ia& %ein+ (reate %' operation o.ro) CCCJLC an . @AK7= BHEN IT EN!OINED THE AUCTION SALE ON EOECUTION O3 THE PROPERTIES O3 GENERAL CREDIT CORPORATION AS BELL AS INITIATING SIMILAR ACTS O3 LEV"ING UPON AND SELLING ON EOECUTION O3 OTHER PROPERTIES O3 GENERAL CREDIT CORPORATION.

(overs an iso&ates t*e (orporation . (are. T*e e. separateness -i&& %e isre+ar e -*ere t*e %$siness a.ro) e%t? -*en )a e $se o.ran(*ise (o)panies -ere or+ani. T*ere.inan(in+.ense o.. (o)panies en+a+e in one an t*e sa)e %$siness. pier(in+ t*e vei& o. invest)ent an . -e *e& > B*en t*e . perpetratin+ a . (orporate assets as part o.i(ia& persons it *as (reate . e. -e state t*at t*is Co$rt *as pier(e t*e vei& o. it s*o$& not %e $se as a s$%ter.$&&' into t*e e2er(ise o. separateness an its (*ara(ter as a i.airs o. stat$tes.ra$ or an i&&e+a& a(t or as a ve*i(&e . An' pier(in+ o. its parent.or (onvenien(e an to serve /$sti(e.or t*e a%ove reasons.ra$ or e.i(tion o.. T*e (orporate . In t*e appea&e /$ +)ent.naver' or (ri)e.en (ri)e..e.ro) t*e )e)%ers or sto(. a)on+ ot*ers. an e2istin+ o%&i+ation. Pre(ise&' . /$sti(e..i(tion *as to %e isre+ar e -*en ne(essar' in t*e interest o. i. t*e s$%si iar'.ation o. Asi e .air o%/e(tives or ot*er-ise to s*ie& t*e).i(tion is $se to e. t*e (o$ntr'.' -ron+.e(tion o.e s$(* as CCCJNort* Mani&a an CCCJCa+a'an Va&&e'.*o& ers -*o (o)pose it -i&& %e &i.ra$ an Hor (on. t*e &a.. (orporate .eat p$%&i( (onvenien(e. Be state in To)as Lao Constr$(tion v.or t*e evasion o.e o. Appea&s.on Cit'.a(tor in t*e %$siness &i. Co$rt o. t*e sa)e na)e o. et a&.i(tion is $r+e as a )eans o.ro) t*e e. t*e CCC +ro$p o.ra$ (re itors. In 3irst P*i&ippine Internationa& Ban. t*e Co$rt o.Pre(ise&' %e(a$se t*e (orporation is s$(* a preva&ent an o)inatin+ . /$sti. in ivi $a&s. (orporate . eva e (ontra(ts an o%&i+ations. t*e Co$rt -i&& not *esitate to $se its s$pervisor' an a /$ i(ative po-ers -*ere t*e (orporate . to avoi a /$ +)ent (re it? to avoi in(&$sion o. B$t even -*en t*ere is o)inan(e over t*e a.*as to &oo. prote(t .e(ts o. A&so in t*e a%oveJ(ite (ase.i(tion app&ies on&' -*en s$(* . a s$%si iar' (orporation are so (ontro&&e %' t*e )ot*er (orporation to t*e e2tent t*at it %e(o)es an instr$)ent or a+ent o.airs o. Ho-ever. s$%si iar' (orporations as -*at . ot*er .or its (onsi eration )ere&' as an a++re+ation o. It is o%vio$s t*at t*e $se %' CCCJLC o.ro) CCCJL$e.. t*e (orporate vei& *as to %e one -it* (a$tion. t*e estate o. v. t*e (ir($)vention o. T*e or+ani. Nationa& La%or Re&ations Co))ission.ore. po-ers %' t*ese arti. t*e vei& -it* -*i(* t*e &a. a (o$rt e(ision. Co))er(ia& Cre it Corporation -as inten e to p$%&i(&' i enti. a (orporation %ein+ a /$ri i(a& entit' -it* a istin(t an separate persona&it' -as envisa+e . t*e o(trine o. a )onopo&' or +enera&&' t*e perpetration o.air evi(e to a(*ieve an ine:$ita%&e res$&t. Appea&s s$staine respon ent1s ar+$)ents o. -e +rant t*e instant petition.erent (orporation -*i(* is a nonJpart' or stran+er to t*is (ase. or to s*ie& it . t*at t*e &e+a& .i(tion is $se as an $n. a e(e ent? to avoi &ia%i&it' arisin+ .$+e to (o))it in/$sti(e an (ir($)vent t*e &a-. as a s*ie& to perpetrate . t*e a(*ieve)ent or per.$se &e+iti)ate iss$es? or to pro)ote $n.i(tion in n$)ero$s (ases -*ere it -as $se ..' it as a (o)ponent o. .te to a&&o.

%$siness invo&vin+ a sin+&e transa(tion pro(ess.or)a& part' in t*e (ase.er o. petitioner (ontin$e to re(eive *is sa&aries. CCC . t*e %$siness operations o. CCC.i(e spa(e. CCCJ LC..ait* an *onest %$siness /$ +)ent. t*e e(entra&i. T*e (*a&&en+e e(ision o. interests. na)e&'> t*e $nit' o. CCC. In a ition to t*e e2(&$sive )ana+e)ent (ontra(t. CCCJLC *a no o. a&&o-an(es. As petitioner stresses. t*e s$%si iar'. t*e (orporate (*ara(ter is not ne(essari&' a%ro+ate .or t*e a++r$pation o.e .Genera& Cre it Corporation.&i(te in t*is (ase. instit$te %' CCCJLC.a(t. CCCJLC -ere :$a&i. T*e /$ +)ent a-ar in t*is (ase arose . @A T*e t-o (orporations a&so s*are t*e sa)e o. Appea&s states t*at CCC. petitioner. . an (ontro&? t*e trans.$n(tion o. CCCJLC. t*e &a. Ho-ever. -as even veri. t*e )ot*er (orporation. its o-n.ation o.ro) t*e (o$nter(&ai) -*i(* petitioner set $p a+ainst CCCJLC. or assi+ne its a((o$nts re(eiva%&es to CCC. B*en t*at *appens. (apita&. t*e Co$rt o. !ose&ito D. t*e E)p&o'ees Pension P&an o. T*e &a-'ers -*o . 3a(t$a&&' an &e+a&&'. T*ere are ot*er in i(ations in t*e re(or -*i(* attest to t*e app&i(a%i&it' o.or t*is is t*at t*e (o)p&aint -as . -*i(* &ater %e(a)e respon ent Genera& Cre it Corporation.ter *is assi+n)ent to t*e s$%si iar' (orporation.its . t*e CCC *a o)inant (ontro& o. Petitioner an t*e ot*er per)anent e)p&o'ees o. T*e (*oi(e o. is not a . t*e a%i&it' to (over )ore territor' an pop$&ation.ro) CCC.i(tion is $se to perpetrate . %ot* CCC an CCCJLC -ere en+a+e in t*e sa)e prin(ipa& &ine o.or &e+iti)ate o%/e(tives. T*e testi)on' o. T*e (o)p&aint in Civi& Case No. a((o$ntant an a$ itor o. CCC appointe its o-n e)p&o'ee.ie )e)%ers an parti(ipants o. T*e reason .steps in to re)e ' t*e pro%&e). CCC. an t*e se($rin+ o. a(tivities %est e(entra&i.inan(e t*e operations o. s$(* as t*at in. it is pier(e in or er to re)e ' in/$sti(e. . LJ<CK=<. Li-ana+. t*e i entit' r$&e in t*is (ase.or &e+iti)ate o%&i+ations o. po&i(' an pra(ti(e %' t*e )ot*er (orporation ins$re t*at CCCJLC -as an instr$)enta&it' or a+en(' o. CCC over CCCJLC. is(o$nte .ro) t*e (o))an s o.$n s to s$it t*eir in ivi $a& (orporate (onvenien(es? an t*e o)inan(e o. an -*en t*e (orporate . T*e e2(&$sive )ana+e)ent (ontra(t ins$re t*at CCCJLC -o$& %e )ana+e an (ontro&&e %' CCC an -o$& not eviate .. It (ontin$es . as t*e resi ent )ana+er o. parties -as -it* CCCJLC. an %ene. no.i(e o. -*en t*e (orporate evi(e is $se %' t*e parent to avoi its &ia%i&it' .ra$ or pro)ote in/$sti(e. s*o-s t*e pervasive an intensive a$ itin+ .i&e %' CCCJLC a+ainst petitioner. )ana+e)ent. B$t -*en t*e )ot*er (orporation an its s$%si iar' (ease to a(t in +oo . CCC. In . even a. CCCJLC. ot*er &e+iti)ate a vanta+es. T*e s$%si iar' so& . Un er t*eir is(o$ntin+ arran+e)ents. CCC sin(e 78A7.-as one *ere is $s$a&&' resorte to .ie %' t*e ire(torJrepresentative o. Not on&' t*at.i&e t*e (o)p&aint an a)en e (o)p&aint -ere a&& inJ*o$se &a-'ers o. Petitioner1s esi+nation as 0resi ent )ana+er0 i)p&ies t*at *e -as p&a(e in CCCJLC %' a s$perior a$t*orit'.

t*e (ivi& (o)p&aint -*i(* -as .*o& ers are pro*i%ite .ir) in i)p&e)entin+ t*e re:$ire p*aseJo$t pro+ra). t*e is(o$ntin+ a+ree)ents t*ro$+* -*i(* CCC (ontro&&e t*e . as a -*o&&' o-ne s$%si iar'. T*ese (ri)ina& (ases -ere &ater is)isse . v. in o%vio$s . *is e)p&o'ers. respon ent Genera& Cre it Corporation.o&&o. CCC $se t*e (orporate evi(e to (ontin$e t*e pro*i%ite pra(ti(e. t*e )ot*er . Si)i&ar&'. CCC or+ani.na)e o. CCCJE:$it' -as in .$& -*en Centra& Ban. Pasi+ an &ater trans.e sti&& anot*er (orporation.i($&ties .s as )one' p&a(e)ents -it* CCCJLC %e(a$se o. CCC. an Tr$st Co)pan' -ere trans. CCCJLC state in its opposition to t*e )otion . in(&$ in+ petitioner.i(ers. an s*o$& .en over %' CCC. i. Un er t*e .. *is servi(es -ere ter)inate .a(tori&' (on. 3$n s . it %e(o)es a *an ' e(eption to avoi a /$ +)ent e%t an -or.T*e (ir($)stan(es -*i(* &e to t*e . resi ent )ana+ers. CCCJLC1s )o e o. Un er t*is r$&e t*e ire(tors.. Convenient&'. petitioner earne t*e ire o.avor is -it*o$t )erit. In or er to (ir($)vent t*e Centra& Ban. t*e (ontention o.0 I..a -ere %ro$+*t %' CCCJLC a+ainst petitioner.i&e a+ainst *i).ra$ o. @8 it is ver' o%vio$s t*at respon ent 0see.or :$a&i.i&e -it* t*e Co$rt o. e2e($tion t*at a&& its properties an assets *a %een trans. 5e' o.or CCC. s$%si iar' (orporations.Centra& Ban.i(tion s*o$& %e appre(iate in its .erre to CCCJLC.on Cit' -as is)isse .1s isapprova& o. Petitioner iss$e t-ent'Jt*ree (*e(. o. an (ri)ina& an (ivi& (ases -ere . Parap*rasin+ t*e r$&in+ in C&aparo&s v. CCC.oresai (o)p&aint are :$ite revea&in+. T*e e(ision raise to $s .inan(es o. instea o. t*e a. In $stria& Re&ations. in(&$ in+ t*e resi ent )ana+ers o. an in/$sti(e.is an invitation to . Nationa& La%or Re&ations. t*e (orporate . a *erin+ to t*e &etter an spirit o. As narrate a%ove.ir) (&ose CCCJLC. its s$%or inates %e(a)e $n&a-. 3a(e -it* t*e . T*ese )onies -ere a&&e+e in t*e (ri)ina& (o)p&aints a+ainst *i) as *avin+ %een sto&en. a opte t*e DOSRI pro*i%itions.a(e %' t*e . -ere to& to o%serve a pse$ oJ(o)p&ian(e -it* t*e p*asin+ o$t or ers.i(ia&s o. %$t *is (o$nter(&ai)s -ere +rante .or revie.t an esta.ro) %orro-in+ .inan(ia& o%&i+ations -*i(* CCCJLC *a to satis. %e pier(e as it -as e&i%erate&' an )a&i(io$s&' esi+ne to eva e its .or a&ias -rit o. -ere appointe to positions in CCCJE:$it'. CCCJLC. Instea o. an sto(. re:$ire)ents. a (orporate .ro) *is ($rrent a((o$nt in t*e 3ar East Ban. Event$a&&'.i(tion is s$staine .ore+oin+ (ir($)stan(es.erre to t*e Re+iona& Tria& Co$rt o. its e)p&o'ees.i(tion -*ose vei& t*e present (ase (o$& . Co$rt o. t*e ne.erre an ta. 3irst Instan(e o. Co)p&aints .or) to t*ese ire(tives an *is re&$(tan(e to resort to i&&e+a& pra(ti(es.ro) t*eir (o)pan'. @= reiterate in Con(ept B$i& ers In(. L$e.inan(ia& o%&i+ation o. t*at t*e (orporate .ie t*e. t*e CCCJ E:$it' Corporation.i&in+ o.'. re $(in+ its DOSRI &en er a((o$nts an its ire(tive to . 3or *is $n-i&&in+ness to satis.a(t on&' anot*er na)e .s t*e prote(tive s*ie& o. opposin+ its (&os$re. (ooperate in its o-n e)ise. Ho-ever. its (re itors. t*e re+$&ations %' avoi in+ DOSRI &oans a&to+et*er.

(on($r. is LI3TED. 5ap$nan.!. /$sti(e are not serve i. A (o$rt /$ +)ent %e(o)es $se&ess an ine. t*e Co$rt o. a.)$&tip&i(it' o. t*e e(ision o..ter protra(te &iti+ation. an a$(tion sa&e . t*e (orporate vei&. t*e .. properties o.e to p$t an en to (ontrovers'.$rt*er &iti+ation is en(o$ra+e -*en t*e iss$e is eter)ina%&e %ase on t*e re(or s.e(tive i.o$n entit&e to positive re&ie. in t*is (ase CCC as a )ot*er (orporation. &iti+ation. As -e state in Is&a)i( Dire(torate vs. !r. Genera& Cre it Corporation. an Par o. t*e e)p&o'er. . T*is p$rpose s*o$& not %e ne+ate %' an inapp&i(a%&e an -ron+ $se o... Genera& Cre it Corporation. Davi e. SO ORDERED. . BHERE3ORE. Appea&s is *ere%' REVERSED an SET ASIDE. Appea&s. t*e e(ision in Civi& Case No. !!. t*e /$ +)ent (re itor -*o. ot*er properties o.. Co$rts *ave %een or+ani. <C t*e en s o. *as %een .or t*e e2e($tion o. P$no. is p&a(e %e'on t*e &e+a& rea(* o. C. an t*e &ev'in+ $pon an se&&in+ on e2e($tion o. Co$rt o. T*e in/$n(tion a+ainst t*e *o& in+ o. LJ<CK=< o.i(tion o.

ai&$re to state a (a$se o. a(tion a+ainst t*e petitioner. Neit*er -as t*ere a e)onstration t*at an' o.or)er e2ten e (re it . Anent t*e pre&i)inar' in/$n(tion iss$e .or &a(.or pre&i)inar' in/$n(tion an event$a&&' enie petitioner1s )otion . t*e s$it a+ainst t*e petitioner is a s$it a+ainst PNBJI3L.ore t*e Co$rt o.ore t*e Re+iona& Tria& Co$rt o.ai&e to prove t*at t*e' *ave a ri+*t prote(te an t*at t*e a(t a+ainst -*i(* t*e -rit is to %e ire(te are vio&ative o. Respon ents *ave . 4PNB9.i&e a )otion to is)iss on t*e +ro$n s o. t*ro$+* its attorne'JinJ. pier(in+ t*e (orporate vei& e2ist. Hen(e. t*e Co$rt or ere t*at t*e sa)e %e &i. B*en respon ents . t*e &atter are present. . a ..or t*e iss$an(e o. In +rantin+ t*e petition. T*e Co$rt . .or in/$n(tion -it* pra'er . INC.i&e a (o)p&aint . )erit.. petitioner PNB.ati Cit'. an' privit' %et-een t*e petitioner an respon ents. PNB Internationa& 3inan(e Lt . a s$%si iar' (o)pan' o. Asi e .o$n t*e o(trine o. an DADASAN GENERAL MERCHANDISE.0 t*e tria& (o$rt r$&e t*at sin(e PNBJI3L is a -*o&&' o-ne s$%si iar' o.ter .or)er (orporation -as a )ere instr$)enta&it' o. Petitioner . t*e evi&s so$+*t to %e prevente %' t*e o(trine o.FIRST DIVISION P&ILIPPINE NATIONAL BANA. a(tion an t*e a%sen(e o. to e(&are voi .or in/$n(tion on a&&e+e inva&i provisions o. Ma. &an in Ma. t*e &atter se($re %' rea& estate )ort+a+es (onstit$te over .ro) t*e . No. RITRATTO GROUP INC. Appea&s.1 S#NOPSIS On Ma' @8. G. an respon ents entere into &oan (ontra(ts -*ere%' t*e . vs. o. %$t t*e sa)e -as enie %' t*e appe&&ate (o$rt. t*e -rit. 142+1+ J23: *1. t*e in i(ative . as t*e &atter -as not a priv' to t*e (ontra(t t*e provisions o. -*i(* respon ents see.ai&e to pa' t*eir o%&i+ations. sai ri+*t. 788D. PNB.ore(&os$re pro(ee in+ -as instit$te %' PNBJI3L. petitioner.a(i&it' in . T*e tria& (o$rt +rante respon ents1 app&i(ation .or (ertiorari an pro*i%ition -as t*erea.ati.avor o. Corporate I entit'.ore t*e S$pre)e Co$rt. respon ents . a -rit o.. respon ents. t*e (ontra(t.a(tors t*at t*e . t*e Co$rt *e& t*at t*e respon ents o not *ave a (a$se o. A petition .a(t t*at PNBJI3L is a -*o&&' o-ne s$%si iar' o.i&e %' t*e petitioner %e. 4PNBJI3L9.R. Respon ents an(*ore t*eir pra'er .te as t*ere -as no s*o-in+ t*at respon ents -ere entit&e to t*e iss$an(e o. RIATTO INTERNATIONAL. Hen(e. pier(in+ t*e (orporate vei& %ase on t*e a&ter e+o or instr$)enta&it' o(trine inapp&i(a%&e in t*e (ase at %ar. t*ere -as no s*o-in+ o. pre&i)inar' in/$n(tion an Hor te)porar' restrainin+ or er %e.a(t. 0Pier(in+ t*e Vei& o. petitioner so$+*t re(o$rse %e. petitioner PNB. petitioner P*i&ippine Nationa& Ban.o$r 469 par(e&s o. App&'in+ t*e o(trine o. 2.

present in t*e proper (o)%ination. t*e s$%si iar' as its . P&ainti. a (orporation *as a persona&it' istin(t an separate . t*e parent (orporation. I.a(tors *ave %een i enti. t*e &atter. t*e (orporate vei&.. T*ese are as .% DOCTRINE OF PIERCING T&E VEIL OF CORPORATE FICTION% CIRCU(STANCES RENDERING SUBSIDIAR# A (ERE INSTRU(ENTALIT#. -as e)p&o'e %' Lenoir Car Bor. anot*er oes not t*ere%' ren er t*e o)inant (orporation &ia%&e . T*e Cir($)stan(es ren erin+ t*e s$%si iar' an instr$)enta&it'. are (ontro&&in+. +enera& app&i(ation in eter)inin+ -*en a s$%si iar' )a' %e treate as a )ere instr$)enta&it' o. Garett vs. anot*er (orporation.i(ient to /$sti. so)e . t*e s$%si iar'. (orporate entit'.i(ers. 4+9 T*e s$%si iar' *as s$%stantia&&' no %$siness e2(ept -it* t*e parent (orporation or no assets e2(ept t*ose (onve'e to or %' t*e parent (orporation. t*e s$%si iar' is a )ere s*a). T*e (ase invo&ve a s$it a+ainst t*e So$t*ern Rai&-a' Co)pan'. So$t*ern Rai&-a' Co.or Lenoir. or $n&ess t*e (ontro& o.. t*e parentJ(orporation.' t*e app&i(ation o. t*e treat)ent o.S#LLABUS 1.in+ .est&' i)possi%&e to (ata&o+$e t*e in.$& in t*e eter)ination o..ie t*at -i&& /$sti.s an a&&e+e t*at *e s$staine in/$ries -*i&e -or. a s$%si iar'1s separate e2isten(e )a' %e respe(te .ro) its in ivi $a& sto(.o&&o-s? 4a9 T*e parent (orporation o-ns a&& or )ost o. 4e9 T*e s$%si iar' *as +ross&' ina e:$ate (apita&. .' t*eir %ein+ treate as one entit'. 4i9 T*e parent (orporation $ses t*e propert' o.% ID.. t*e &atter (orporation -as %$t a )ere instr$)enta&it' o. t*e sto(.inan(es t*e s$%si iar'. *en(e. # T*e +enera& r$&e is t*at as a &e+a& entit'.inan(ia& responsi%i&it' is re. o. t*e s$%si iar' is s$(* t*at it is %$t an instr$)enta&it' or a /$n(t o. ID.$n(tions. $se to per. It is )ani. T*e (ase o. 4 9 T*e parent (orporation s$%s(ri%es to a&& t*e (apita& sto(.*o& ers or )e)%ers. t*e s$%si iar' is es(ri%e as a epart)ent or ivision o.ine to t*ose arisin+ in t*eir respe(tive %$siness. t*e parent (orporation or in t*e state)ents o. . CO((ERCIAL LA$% CORPORATION LA$% CORPORATION% &AS A PERSONALIT# SEPARATE AND DISTINCT FRO( ITS STOCA&OLDERS OR (E(BERS. /$ i(ia& is(retion step in to prevent t*e a%$ses o. 4(9 T*e parent (orporation . t*e parent (orporation as -e&& as t*e s$%si iar' -i&& %e (on. *o-ever. Lenoir Car Bor. 4.s. t*e s$%si iar' or ot*er-ise (a$ses its in(orporation.a(t t*at (an arise %$t t*ere are (ertain (o))on (ir($)stan(es -*i(* are i)portant an -*i(*.en a&one is not s$. or its %$siness or .a(t t*at a (orporation o-ns a&& o. o. t*e s$%si iar' $n&ess t*e separate (orporate e2isten(e o. He. t*e pier(in+ o.% ID. o.or) &e+iti)ate . o-ners*ip a&one %' one (orporation o. t*e parent (orporation.erre to as t*e parent (orporation1s o-n.s o. T*e (o$rts )a' in t*e e2er(ise o.or t*e torts o. t*e (apita& sto(. an is not a. t*e s$%si iar'. i. 4%9 T*e parent an s$%si iar' (orporations *ave (o))on ire(tors or o. its o.e(te %' t*e persona& ri+*ts. t*e sto(. T*e )ere . separate entit' privi&e+e an pier(e t*e vei& o. ta.i(ers.inite variations o.i&e a s$it a+ainst So$t*ern Rai&-a' Co)pan' on t*e +ro$n t*at So$t*ern *a a(:$ire t*e entire (apita& sto(. o%&i+ations an transa(tions o. 2.9 T*e parent (orporation pa's t*e sa&aries an ot*er e2penses or &osses o. # B*i&e t*ere e2ists no e. 4*9 In t*e papers o.or)er.. t*e o(trine o. Sai Co$rt t*en o$t&ine t*e (ir($)stan(es -*i(* )a' %e $se.inite test o. t*e o)inant (orporation. o. -*et*er t*e s$%si iar' is %$t a )ere instr$)enta&it' o. an t*e &ia%i&it' o. t*e . is en&i+*tenin+. T*e Tennessee S$pre)e Co$rt state t*at as a +enera& r$&e t*e sto(.

Lenoir .t*e (orporation operate an t*e in ivi $a& e. . T*e a. pier(in+ t*e vei& o. (on $it or a /$n(t o. pier(in+ t*e (orporate vei& is an e:$ita%&e o(trine eve&ope to a ress sit$ations.te as it is a )ere provisiona& re)e ' %$t a /$n(t to t*e )ain s$it.or)er (orporation is a )ere instr$)enta&it' o.ro) t*e parent (orporation.o-n. t*e (o$rts are (on(erne -it* rea&it' an not .% ID. t*e evi&s so$+*t to %e prevente %' t*e o(trine o. t*e &atter are present. @ In Con(ept B$i& ers. t*e s$%si iar' are not o%serve .$se t*e &e+iti)ate iss$es. t*e prin(ipa& . na)e&'.inan(es %$t o. to perpet$ate t*e vio&ation o. $t' )$st pro2i)ate&' (a$se t*e in/$r' or $n/$st &oss (o)p&aine o.a(tors t*at t*e . t*ere. anot*er (orporation.% ID.airs are so (on $(te as to )a.e it )ere&' an instr$)enta&it'.% NOT APPLICABLE TO CASE AT BAR. *.% ID. Lenoir %' So$t*ern.ra$ or -ron+. -*ere t*e separate (orporate persona&it' o.. a stat$tor' or ot*er positive &e+a& $t'. an possi%&' s$%s(ription to t*e (apita& sto(.% $&EN APPLICABLE. a person. petitioner PNB. ID. t*e prin(ipa& a(tion. or -*ere t*e (orporation is so or+ani.% ID. a+en('. t*e s$%si iar' %$t ta. 4/9 T*e ire(tors or e2e($tives o. t*e e&even &iste in i(ia o(($r. A -rit o. pier(in+ t*e (orporate vei& e2ists. T*e (o)p&aint )$st %e is)isse .% ID. 5.. . S$(* (ontro& )$st *ave %een $se %' t*e e.e so t*at t*e (orporate entit' as to t*is transa(tion *a at t*e ti)e no separate )in . or -*en it is )a e as a s*ie& to (on. not on&' o.% PROVISIONAL RE(EDIES% $RIT OF PRELI(INAR# INJUNCTION% DIS(ISSAL OF T&E PRINCIPAL ACTION RESULTS IN DENIAL OF ISSUANCE T&EREOF. o.or -ron+.en ant1s re&ations*ip to t*e operation.in s no app&i(ation in t*e (ase at %ar. T*e Tennessee S$pre)e Co$rt t*$s r$&e > In t*e (ase at %ar on&' t-o o.i(tion is $se to e.% ID. t*ere is no s*o-in+ o..a(t t*at PNBJI3L is a -*o&&' o-ne s$%si iar' o. T*e o(trine app&ies -*en t*e (orporate . not )ere )a/orit' or (o)p&ete (ontro&. ID. or is*onest an $n/$st a(t in (ontravention o. prote(t .1s &e+a& ri+*ts? an .or)a& &e+a& re:$ire)ents o. In(. T*e is)issa& o.% ELE(ENTS. Neit*er is t*ere a e)onstration t*at an' o. 4.$& p$rposes. # Asi e . t*e o(trine o. /$sti. or -*ere a (orporation is t*e )ere a&ter e+o or %$siness (on $it o. # Anent t*e iss$an(e o.% ID. (orporate . ID.e an (ontro&&e an its a. to -it> 7.% ID. +.or no ot*er p$rposes $rin+ t*e pen en(' o. t*e (apita& sto(. 4. t*e o(trine o. %$t (o)p&ete o)ination. <. t*ese e&e)ents prevents 0pier(in+ t*e (orporate vei&.ra$ or e. ID. -i&& or e2isten(e o. t*e pre&i)inar' in/$n(tion. T*e a%sen(e o. o.i(tion.% ID. its o-n. p&ainti. t*e in i(ative .e t*eir or ers .' -ron+. # In t*is /$ris i(tion. -it* *o.9 T*e . NLRC.or). pre&i)inar' in/$n(tion is an an(i&&ar' or preventive re)e ' t*at )a' on&' %e resorte to %' a &iti+ant to prote(t or preserve *is ri+*ts or interests an . @. v. Contro&. )ost o.ro) t*e . Ines(apa%&'. t*e o-ners*ip o. . t*e sa)e )$st %e &i.en (ri)e.oresai (ontro& an %rea(* o.eat p$%&i( (onvenien(e. pier(in+ t*e (orporate vei& %ase on t*e a&ter e+o or instr$)enta&it' o(trine . po&i(ies an %$siness pra(ti(e in respe(t to t*e transa(tion atta(. -e *ave *e& t*at t*e o(trine o. t*e s$%si iar' o not a(t in epen ent&' in t*e interest o.ore. -e *ave &ai t*e test in eter)inin+ t*e app&i(a%i&it' o. a (orporation is a%$se or $se . an' one o.0 In app&'in+ t*e 0instr$)enta&it'0 or 0a&ter e+o0 o(trine.en ant to (o))it .

s to ann$& an set asi e t*e Co$rt o. In(. <. as ear&ier is($sse . IS NOT A SUIT AGAINST T&E PRINCIPAL.or t*e iss$an(e o.i(ant &e+a& re&ations*ip invo&ve in t*is (ase sin(e t*e petitioner -as not s$e %e(a$se it is t*e parent (o)pan' o..or revie.ina& eter)ination (an %e *a . petitioner see.ati. t*$s. -*i(* -ere se($re %' t*e )ort+a+es so$+*t to %e . # In an' (ase.P. 7888.e-ise. or+ani. T*e Co$rt is not $n)in . Appea&s1 e(ision in C.e %' &a. Co$rt.ore(&ose . # An in/$n(tive re)e ' )a' on&' %e resorte to -*en t*ere is a pressin+ ne(essit' to avoi in/$rio$s (onse:$en(es -*i(* (annot %e re)e ie $n er an' stan ar (o)pensation.e o. Mean-*i&e. S. ID. respon ents Ritratto Gro$p. ever' a(tion )$st %e prose($te o.' t*e provisions o.i&in+ t*e (ase a+ainst t*e -ron+ part'. ". PNBJI3L in initiatin+ t*e . t*e' )$st s$.in in+s o. t*e in/$n(tion s$it is ire(te on&' a+ainst t*e a+ent. t*e . Ho-ever. a. CIVIL LA$% AGENC#% A SUIT AGAINST AN AGENT.0 In t*e (ase at %ar. J pIn a petition .$& o. Respon ents o not en' t*eir in e%te ness. $n&ess ot*er-ise a$t*ori. . t*e )ort+a+e properties are proper&' s$%/e(t to a . an a(tion s*a&& %e /oine eit*er as p&ainti. KK<A6 ate Mar(* @A. @CCC.ore(&os$re pro(ee in+s. t*e petitioner -as s$e %e(a$se it a(te as an attorne'JinJ. %ot* t*e tria& (o$rt an t*e appe&&ate (o$rt t*at t*ere )a' %e serio$s +ro$n s to n$&&i.A. Un er t*e R$&es o.on (ertiorari $n er R$&e 6K o. 3$rt*er.a(tion t*$s res$&ts in t*e enia& o.ore(&os$re pro(ee in+s.ore(&os$re sa&e. As s$it a+ainst an a+ent (annot -it*o$t (o)pe&&in+ reasons %e (onsi ere as a s$it a+ainst t*e prin(ipa&. t*e pra'er . t*e -rit. respon ents (o))itte t*e )ista. t*e parentJs$%si iar' re&ations*ip %et-een PNB an PNBJI3L is not t*e si+ni. t*e rea& part'JinJinterest. T*eir properties are %' t*eir o-n (*oi(e en($)%ere %' rea& estate )ort+a+es..R. t*eir error.a(t o. Bran(* 76A ate !$ne <C. -*i(* enie petitioner1s )otion to is)iss. e.% ID. respon ents :$estione t*e a&&e+e voi stip$&ations in t*e (ontra(t on&' -*en petitioner initiate t*e . ABSENT CO(PELLING REASONS. C&ear&'. No. t*e &oan a+ree)ent. Co$rt. not t*e prin(ipa&. sai ri+*t. T*e ante(e ents o.e an e2istin+ $n er P*i&ippine &a-. DECISION AAPUNAN. respon ents *ave .s or e.er t*e (onse:$en(es o. Ma.. an its Or er ate O(to%er 6.or t*ese R$&es. an Da asan Genera& Mer(*an ise are o)esti( (orporations.% $&EN (A# BE GRANTED. t*e R$&es re:$ire t*at 0partiesJinJinterest -it*o$t -*o) no . t*e -rit. t*e Revise R$&es o.e an e2istin+ $n er P*i&ippine &a-.. PNBJI3L. t*e Re+iona& Tria& Co$rt o. t*e &oans. In )an ator' ter)s.en ants.% ID. Moreover. Upon t*e nonJpa')ent o. . CV G.o&&o-s> Petitioner P*i&ippine Nationa& Ban. is a o)esti( (orporation or+ani.en e in t*e na)e o. In(. &i. 7888. Rat*er. pre&i)inar' in/$n(tion o.ir)in+ t*e Or er iss$in+ a -rit o. t*ere is no s*o-in+ t*at respon ents are entit&e to t*e iss$an(e o.ai&e to prove t*at t*e' *ave a ri+*t prote(te an t*at t*e a(ts a+ainst -*i(* t*e -rit is to %e ire(te are vio&ative o. Riatto Internationa&. t*is (ase are as .

)erit Petitioner.ore t*e Re+iona& Tria& Co$rt o. 4PNBJI3L9 a s$%si iar' (o)pan' o..or t*e iss$an(e o.&e to Bran(* 76A o. e2ten e a &etter o.e an oin+ %$siness in Hon+ 5on+. a(tion an t*e a%sen(e o. . t*e app&i(ation . On !$ne <C. 7888.or pre&i)inar' in/$n(tion.On Ma' @8. pre&i)inar' in/$n(tion to -*i(* t*e respon ents . an' privit' %et-een t*e petitioner an respon ents.avor o. 7888. NO CAUSE O3 ACTION EOISTS AGAINST PETITIONER. 788D.AC. T*e E2e($tive !$ +e o. On !$ne 7K.s re(o$rse to t*is Co$rt an raises t*e . -*i(* -rit -as (orrespon in+&' iss$e on !$&' 76. PNB Internationa& 3inan(e Lt . PNBJI3L.ore t*e Co$rt o. a -rit o.ie t*e respon ents o. CONSIDERING THAT B" THE ALLEGATIONS O3 THE COMPLAINT. 7888.CCC. On Ma' @=. or+ani.i&e its -ritten opposition to t*e app&i(ation. a -rit o.7= in Apri& 788=. BHICH IS NOT A REAL PART" IN INTEREST BEING A MERE ATTORNE"JINJ3ACT AUTHORIPED TO EN3ORCE AN ANCILLAR" CONTRACT. THE COURT O3 APPEALS PALPABL" ERRED IN ALLOBING THE TRIAL COURT TO ISSUE IN EOCESS OR LAC5 O3 !URISDICTION A BRIT O3 PRELIMINAR" IN!UNCTION OVER AND BE"OND BHAT BAS PRA"ED 3OR .ter.i&e a rep&'. petitioner .i&e an opposition to t*e app&i(ation . t*e appe&&ate (o$rt is)isse t*e petition. 7888. Respon ents )a e repa')ents o.a(i&it' -as &ater in(rease s$((essive&' to USQ7. THE COURT O3 APPEALS PALPABL" ERRED IN NOT DISMISSING THE COMPLAINT A LUO. t*e -rit o. t*e rea& estate )ort+a+es. T*is (re it . t*e Re+iona& Tria& Co$rt o.ore(&os$re o. 7888.@8C. PNB.or &a(. Ma. respon ents . pre&i)inar' in/$n(tion an Hor te)porar' restrainin+ or er %e. t*e Re+iona& Tria& Co$rt o. -ere to %e so& at a p$%&i( a$(tion on Ma' @A.CC in 3e%r$ar' 788A? an e(rease to USQ7. T*e tria& /$ +e t*en set a *earin+ on !$ne =.ati iss$e a A@J*o$r te)porar' restrainin+ or er. 788=. in a petition .i&e a )otion to is)iss on t*e +ro$n s o.CCC. (re it in .o&&o-in+ errors> 7. Ho-ever. @.6@K. t*e tria& (o$rt /$ +e iss$e an Or er .@A6. o. t*e &oan in($rre %' re)ittin+ t*ose a)o$nts to t*eir &oan a((o$nt -it* PNBJI3L in Hon+ 5on+. as o.or t*e iss$an(e o.CCC.6@7. a&& t*e rea& estate )ort+a+es an t*at t*e properties s$%/e(t t*ereo. t*e .ati.ai&$re to state a (a$se o. seven a's to . &an in Ma. On !$ne @K. Apri& <C.a(t PNB. USQ<CC.ati Cit' Ha&&.ati Cit'. t*e )otion to is)iss -as enie %' t*e tria& (o$rt /$ +e . Appea&s. 7888.or in/$n(tion -it* pra'er . t*ro$+* its attorne'JinJ. petitioner -as +iven a perio o. t*e (ase -as ra. pre&i)inar' in/$n(tion %e. t*e respon ents in t*e a)o$nt o. 7888 at t*e Ma.or a -rit o. At t*e *earin+ o. On O(to%er 6. t*eir o$tstan in+ o%&i+ations stoo at USQ7.68A.or (ertiorari an pro*i%ition assai&e t*e iss$an(e o. Ma. noti.76C. P$rs$ant to t*e ter)s o.CC in Nove)%er 788D? to USQ7.CCC.CC se($re %' rea& estate )ort+a+es (onstit$te over . Ma.ati. 7888. In t*e i)p$+ne e(ision. On Ma' @K. petitioner .i&e a (o)p&aint . t*erea. Petitioner t*$s see.o$r 469 par(e&s o.CC in Septe)%er 788D? to USQ7.<7D. 7888. pre&i)inar' in/$n(tion.

(ontra(ts.ore(&ose on t*e properties )ort+a+e to se($re t*eir &oan o%&i+ations -it* PNBJI3L.a(i&it' is voi as it (ontains stip$&ations in vio&ation o. voi (re it . Appea&s1 De(ision ate Mar(* @A. t*e prin(ip&e o. T*e petition is i)presse -it* )erit. respon ents /$sti. II THERE BEING A STIPULATION IN THE LOAN AGREEMENT THAT THE RATE O3 INTEREST AGREED UPON MA" BE UNILATERALL" MODI3IED B" DE3ENDANT. t*e (o$rt a :$o in app&'in+ t*e o(trine o. In t*eir Co))ent. In t*eir (o)p&aint.$&& po-er an a$t*orit' to. 7888 an O(to%er 6. t*e (ontra(t> GROUNDS I THE DETERMINATION O3 THE INTEREST RATES BEING LE3T TO THE SOLE DISCRETION O3 THE DE3ENDANT PNB CONTRAVENES THE PRINCIPAL O3 MUTUALIT" O3 CONTRACTS.ie t*e a(t o. A3P VS. inter a&ia.a(i&ities as %ases .or in/$n(tion on a&&e+e inva&i provisions o. 7888 %e set asi e an t*e is)issa& o. t*e (o)p&aint in t*e instant (ase.i( $ties $n er a spe(ia& po-er o.ore(&osin+ respon ents1 properties. inter a&ia. an(*or t*eir pra'er . Base on t*e a. not PNB. attorne' in(orporate in t*e rea& estate )ort+a+e. Petitioner pra's. .. PNBJI3L. It is not priv' to t*e &oan (ontra(ts entere into %' respon ents an PNBJI3L.a(t . petitioner is sti&& t*e part'JinJinterest in t*e app&i(ation .or pre&i)inar' in/$n(tion %e(a$se it is tas. THERE BAS NO STIPULATION THAT THE RATE O3 INTEREST SHALL BE REDUCED IN THE EVENT THAT THE APPLICABLE MAOIMUM RATE O3 INTEREST IS REDUCED B" LAB OR B" THE MONETAR" BOARD. T*e (ontra(t :$estione is one entere into %et-een respon ent an PNBJI3L. respon ents so$+*t to en/oin an restrain PNB .ore)entione +ro$n s.or t*e PNBJI3L -it* . Respon ents )aintain t*at t*e entire (re it . In a ition.ro) t*e .e to (o))it a(ts o. . 0Pier(in+ t*e Vei& o. t*e propert' in or er to prote(t t*eir ri+*ts to sai propert' %' reason o. respon ents ar+$e t*at even ass$)in+ ar+$en o t*at petitioner an PNBJI3L are t-o separate entities. in t*eir (o)p&aint. Corporate I entit'0 %' statin+ t*at petitioner is )ere&' an a&ter e+o or a %$siness (on $it o. t*at t*e Co$rt o. . Respon ents. )$t$a&it' o. @CCC an t*e tria& (o$rt1s Or ers ate !$ne <C. *erein petitioner is an a+ent -it* &i)ite a$t*orit' an spe(i. 7C7 SCRA =@A. respon ents a )it t*at petitioner is a )ere attorne'JinJ.or t*e rea& estate )ort+a+e over t*e sai propert'. In ot*er -or s.ore(&os$re an event$a& sa&e o. GUADIP !R.IN THE COMPLAINT A LUO CONTRAR" TO CHIE3 O3 STA33.

e(te %' t*e persona& ri+*ts.i&e a s$it a+ainst So$t*ern Rai&-a' Co)pan' on t*e +ro$n t*at So$t*ern *a a(:$ire t*e entire (apita& sto(..$n(tions. a s$%si iar'1s separate e2isten(e )a' %e respe(te . T*e tria& (o$rt. t*e parent an t*e s$%si iar' on t*e +ro$n t*at t*e &atter -as . ta. 5oppe& P*i&. +enera& app&i(ation in eter)inin+ -*en a s$%si iar' )a' %e treate as a )ere instr$)enta&it' o. So$t*ern Rai&-a' Co. Respon ents. t*e parent (orporation as -e&& as t*e s$%si iar' -i&& %e (on. an t*e &ia%i&it' o.s an a&&e+e t*at *e s$staine in/$ries -*i&e -or. a (orporation *as a persona&it' istin(t an separate . In /$sti. t*e o(trine o. so)e . *o-ever.inite test o.. T*e (ase invo&ve a s$it a+ainst t*e So$t*ern Rai&-a' Co)pan'. a+en('. t*at t*e r$&in+ in 5oppe& .ine to t*ose arisin+ in t*eir respe(tive %$siness.e it )ere&' an instr$)enta&it'. . separate entit' privi&e+e an pier(e t*e vei& o.a(tors *ave %een i enti. In t*e (ase at %ar. o. t*e &atter . e. t*e pier(in+ o. as to )a. Be . espite t*e re(o+nition t*at petitioner is a )ere a+ent. a(tion a+ainst petitioner. Lenoir Car Bor.en ant PNB is a s$it a+ainst PNBJI3L. is en&i+*tenin+.ro) its in ivi $a& sto(. anot*er (orporation. o not *ave an' (a$se o. o%&i+ations an transa(tions o. T*e (o$rts )a' in t*e e2er(ise o. (itin+ t*e (ase o. /$ i(ia& is(retion step in to prevent t*e a%$ses o. eva in+ t*e pa')ent o.in+ . t*e interest to %e pai %' t*e) in a((or an(e -it* t*e ter)s an (on itions in t*e o($)ents evi en(in+ t*e (re it . (on $it or a /$n(t o. C&ear&'..airs are so (on $(te . t*e petitioner1s prin(ipa& an t*e part' to t*e &oan (ontra(ts. -as e)p&o'e %' Lenoir Car Bor.en ant P*i&ippine Nationa& Ban. t*e s$it a+ainst t*e e. "et.ai& to s*o. $se to per. t*e &atter. He. an (re itin+ t*e a)o$nt previo$s&' pai to PNB %' *erein respon ents.in s no app&i(ation in t*e (ase at %ar.s.e an (ontro&&e an its a. "at(o. t*e (orporate vei&.. t*is Co$rt isre+ar e t*e separate e2isten(e o.ie t*at -i&& /$sti. anot*er (orporation. In(. reasone t*at t*e (orporate entit' )a' %e isre+ar e -*ere a (orporation is t*e )ere a&ter e+o.or) &e+iti)ate . Garrett vs.or t*e p$rpose o. *en(e. T*e +enera& r$&e is t*at as a &e+a& entit'. *i+*er ta2es. P&ainti. 7886. or %$siness (on $it o.a(i&ities. t*e va&i it' o.s o. t*e &oan (ontra(ts is a )atter %et-een PNBJI3L. petitioner not %ein+ a part to t*e (ontra(t *as no po-er to reJ(o)p$te t*e interest rates set . t*e parent (orporation.' t*e app&i(ation o. In sai (ase.or Lenoir.ort* in t*e (ontra(t. Be isa+ree. *o-ever.en a&one is not s$. t*e sto(.'in+ its r$&in+. an is not a. t*ere. t*e respon ents in t*eir (o)p&aint pra'e t*at t*e petitioner PNB %e or ere to reJ(o)p$te t*e res(*e $&in+ o. T*e (ase o.an' (o+ent reason -*' t*e separate entities o. I.ore. t*e tria& (o$rt.' t*eir %ein+ treate as one entit'. respon ents .a(t t*at a (orporation o-ns a&& o. (orporate entit'. t*e treat)ent o..in . B*i&e t*ere e2ists no e. *o-ever. t*e PNB an PNBJI3L s*o$& %e isre+ar e .T*e iss$e o.*o& ers or )e)%ers. T*e )ere . in its Or er ate O(to%er 6. a person or -*ere t*e (orporation is so or+ani. r$&e t*at sin(e PNBJI3L is a -*o&&' o-ne s$%si iar' o. vs.or)e )ere&' . an t*e respon ents.i(ient to /$sti.

Lenoir %' So$t*ern. o. /$sti. an possi%&' s$%s(ription to t*e (apita& sto(. t*e s$%si iar'.or t*e torts o..airs are so (on $(te as to )a.i(tion is $se to e. 4e9 T*e s$%si iar' *as +ross&' ina e:$ate (apita&. T*ese are as .e t*eir or ers .e it )ere&' an instr$)enta&it'. or -*en it is )a e as a s*ie& to (on. a person. in t*is /$ris i(tion. .(orporation -as %$t a )ere instr$)enta&it' o. Lenoir. anot*er oes not t*ere%' ren er t*e o)inant (orporation &ia%&e . t*e parent (orporation.inite variations o.i(ers.e an (ontro&&e an its a. t*e s$%si iar' as its o-n. t*e s$%si iar' o not a(t in epen ent&' in t*e interest o. -*et*er t*e s$%si iar' is %$t a )ere instr$)enta&it' o.$& in t*e eter)ination o. a (orporation is a%$se or $se . .or -ron+.est&' i)possi%&e to (ata&o+$e t*e in.$se t*e &e+iti)ate iss$es.o&&o-s> 4a9 T*e parent (orporation o-ns a&& or )ost o. or $n&ess t*e (ontro& o.erre to as t*e parent (orporation1s o-n. 4. 4(9 T*e parent (orporation . 4*9 In t*e papers o. t*e s$%si iar' %$t ta. o. T*e Tennessee S$pre)e Co$rt t*$s r$&e > In t*e (ase at %ar on&' t-o o. i.en (ri)e. its o. t*e (apita& sto(. Sai Co$rt t*en o$t&ine t*e (ir($)stan(es -*i(* )a' %e $se. or its %$siness or . 4+9 T*e s$%si iar' *as s$%stantia&&' no %$siness e2(ept -it* t*e parent (orporation or no assets e2(ept t*ose (onve'e to or %' t*e parent (orporation. t*e e&even &iste in i(ia o(($r.inan(es t*e s$%si iar'. o. t*e s$%si iar' is s$(* t*at it is %$t an instr$)enta&it' or a /$n(t o. o.inan(ia& responsi%i&it' is re. t*e ..i(ers. t*e s$%si iar' is es(ri%e as a epart)ent or ivision o. t*e s$%si iar' are not o%serve . t*e (apita& sto(. t*e s$%si iar' or ot*er-ise (a$ses its in(orporation. or -*ere a (orporation is t*e )ere a&ter e+o or %$siness (on $it o. (on $it or a /$n(t o. t*e o)inant (orporation. a+en('. or -*ere t*e (orporation is so or+ani. are (ontro&&in+. t*e s$%si iar' $n&ess t*e separate (orporate e2isten(e o.9 T*e . t*e parent (orporation or in t*e state)ents o. . . 4 9 T*e parent (orporation s$%s(ri%es to a&& t*e (apita& sto(.. anot*er (orporation. Si)i&ar&'. )ost o. 4. t*e s$%si iar' is a )ere s*a). T*e Tennessee S$pre)e Co$rt state t*at as a +enera& r$&e t*e sto(.a(t t*at (an arise %$t t*ere are (ertain (o))on (ir($)stan(es -*i(* are i)portant an -*i(*. o-ners*ip a&one %' one (orporation o.' -ron+.ra$ or e.eat p$%&i( (onvenien(e. o. prote(t . 4i9 T*e parent (orporation $ses t*e propert' o. It is )ani. na)e&'. 4/9 T*e ire(tors or e2e($tives o. T*e (o)p&aint )$st %e is)isse . pier(in+ t*e (orporate vei& is an e:$ita%&e o(trine eve&ope to a ress sit$ations -*ere t*e separate (orporate persona&it' o. t*e s$%si iar'.$& p$rposes.or)a& &e+a& re:$ire)ents o. present in t*e proper (o)%ination. -e *ave *e& t*at t*e o(trine o. t*e parentJ(orporation> T*e Cir($)stan(e ren erin+ t*e s$%si iar' an instr$)enta&it'. t*e o-ners*ip o. T*e o(trine app&ies -*en t*e (orporate .or)er.ro) t*e parent (orporation.9 T*e parent (orporation pa's t*e sa&aries an ot*er e2penses or &osses o. 4%9 T*e parent an s$%si iar' (orporations *ave (o))on ire(tors or o. t*e sto(.

a(t t*at PNBJI3L is a -*o&&' o-ne s$%si iar' o. -e *ave &ai t*e test in eter)inin+ t*e app&i(a%i&it' o. t*ese e&e)ents prevents 0pier(in+ t*e (orporate vei&.ina& eter)ination (an %e *a . t*ere.0 In app&'in+ t*e 0instr$)enta&it'0 or 0a&ter e+o0 o(trine. pier(in+ t*e vei& o. t*e in i(ative . PNBJI3L in initiatin+ t*e . t*e 788A R$&es o.. t*e prin(ipa& a(tion t*$s res$&ts in t*e enia& o. T*e is)issa& o. $n&ess ot*er-ise a$t*ori.ra$ or -ron+. Contro&. not t*e prin(ipa&. 3$rt*er. Un er t*e R$&es o. an a(tion s*a&& %e /oine eit*er as p&ainti. t*ere is no s*o-in+ t*at respon ents are entit&e to t*e iss$an(e o. t*e petitioner -as s$e %e(a$se it a(te as an attorne'JinJ.te as it is a )ere provisiona& re)e ' %$t a /$n(t to t*e )ain s$it.inan(es %$t o.i(tion. to -it> 7. t*e o(trine o. Anent t*e iss$an(e o. v. Co$rt. Se(tion <. T*e a%sen(e o. ever' a(tion )$st %e prose($te or e. A -rit o. R$&e K=. (orporate .s or e. t*e parentJs$%si iar' re&ations*ip %et-een PNB an PNBJI3L is not t*e si+ni. not )ere )a/orit' or (o)p&ete (ontro&. t*e &atter are present. $t' )$st pro2i)ate&' (a$se t*e in/$r' or $n/$st &oss (o)p&aine o. a stat$tor' or ot*er positive &e+a& $t'.ro) t*e .e so t*at t*e (orporate entit' as to t*is transa(tion *a at t*e ti)e no separate )in . PNBJI3L. t*e -rit.in s no app&i(ation in t*e (ase at %ar.ore. t*e sa)e )$st %e &i. or is*onest an . to perpet$ate t*e vio&ation o. po&i(' an %$siness pra(ti(e in respe(t to t*e transa(tion atta(.or t*e iss$an(e o. petitioner PNB. NLRC.0 In t*e (ase at %ar. an' one o. t*e pre&i)inar' in/$n(tion. t*e R$&es re:$ire t*at 0partiesJinJinterest -it*o$t -*o) no .en ant1s re&ations*ip to t*e operation. its o-n.s &e+a& ri+*ts? an . . p&ainti. pier(in+ t*e (orporate vei& %ase on t*e a&ter e+o or instr$)enta&it' o(trine . t*ere is no s*o-in+ o. <. S$(* (ontro& )$st *ave %een $se %' t*e e.or).t*e (orporation operate an t*e in ivi $a& e.a(tors t*at t*e .ore(&os$re pro(ee in+s.en e in t*e na)e o. t*e (o$rts are (on(erne -it* rea&it' an not .or t*ese R$&es. T*e a. o.en ants.. Rat*er. $n/$st a(t in (ontravention o. Ines(apa%&'.a(t o. -i&& or e2isten(e o. not on&' o. t*e pra'er .en ant to (o))it . Civi& Pro(e $re provi es> .e %' &a. t*e in/$n(tion s$it is ire(te on&' a+ainst t*e a+ent.i(ant &e+a& re&ations*ip invo&ve in t*is (ase sin(e t*e petitioner -as not s$e %e(a$se it is t*e parent (o)pan' o.oresai (ontro& an %rea(* o. t*e rea& part'JinJinterest. t*e evi&s so$+*t to %e prevente %' t*e o(trine o. %$t (o)p&ete o)ination. t*e prin(ipa& a(tion.or no ot*er p$rpose $rin+ t*e pen en(' o. In an' (ase.or)er (orporation is a )ere instr$)enta&it' o. @. pre&i)inar' in/$n(tion is an an(i&&ar' or preventive re)e ' t*at )a' on&' %e resorte to %' a &iti+ant to prote(t or preserve *is ri+*ts or interests an .. In )an ator' ter)s. t*e o(trine o. Neit*er is t*ere a e)onstration t*at an' o. t*e -rit. Asi e .In Con(ept B$i& ers. -it* *o. A s$it a+ainst an a+ent (annot -it*o$t (o)pe&&in+ reasons %e (onsi ere a s$it a+ainst t*e prin(ipa&. pier(in+ t*e (orporate vei& e2ists. In(.

88J7C<A are *ere%' ANNULLED an SET ASIDE an t*e (o)p&aint in sai (ase DISMISSED. T*e Co$rt is not $n)in . an t*e -*o&e or part o.. t*$s.or)an(e o. respon ents o not *ave a (a$se o. t*e ri+*ts o. respon ents (o))itte t*e )ista.!. Gro$n s . pre&i)inar' in/$n(tion.or)an(e o. Upon t*e nonJpa')ent o. )$st %e &i. SO ORDERED.e o.er t*e (onse:$en(es o. P$no. -*i(* respon ents see. T*e assai&e e(ision o. A&& to& .e(t$a&.in in+s o. t*eir error. or is atte)ptin+ to o.. (ontin$an(e or nonJper. Bran(* 76A in Civi& Case No. t*e a(tion or pro(ee in+. t*e &oans.or a &i)ite perio or perpet$a&&'. respon ents :$estione t*e a&&e+e voi stip$&ations in t*e (ontra(t on&' -*en petitioner initiate t*e . 7888 o. an in/$n(tive re)e ' )a' on&' %e resorte to -*en t*ere is a pressin+ ne(essit' to avoi in/$rio$s (onse:$en(es -*i(* (annot %e re)e ie $n er an' stan ar (o)pensation. C.i(ia& &eave. t*reatenin+.ai&e to prove t*at t*e' *ave a ri+*t prote(te an t*at t*e a(ts a+ainst -*i(* t*e -rit is to %e ire(te are vio&ative o. t*e . !r. so)e a(t or a(ts pro%a%&' in vio&ation o. $rin+ t*e &iti+ation -o$& pro%a%&' -or. t*e petition is *ere%' GRANTED. respon ents *ave . or in re:$irin+ t*e per.ore(&os$re sa&e. t*e &oan a+ree)ent. t*e Re+iona& Tria& Co$rt o. A((or in+&'. !!. a+en(' or a person is oin+. is on o..$& o.i&in+ t*e (ase a+ainst t*e -ron+ part'. to e(&are voi . T*$s..ore(&ose . t*e a(t or a(ts (o)p&aine o. Ho-ever. IN VIEB O3 THE 3OREGOING. (onsists in restrainin+ t*e (o))ission or (ontin$an(e o. e)an e . a(tion a+ainst t*e petitioner as t*e &atter is not priv' to t*e (ontra(t t*e provisions o.. T*eir properties are %' t*eir o-n (*oi(e en($)%ere %' rea& estate )ort+a+es.ore(&os$re pro(ee in+s. an ten in+ to ren er t*e /$ +)ent ine. Appea&s is *ere%' REVERSED. C&ear&'. Par o an Santia+o. . in/$sti(e to t*e app&i(ant? or 4(9 T*at a part'. t*e )ort+a+e properties are proper&' s$%/e(t to a . t*e Co$rt o. -*i(* -ere se($re %' t*e )ort+a+es so$+*t to %e .ore t*e Re+iona& Tria& Co$rt )$st %e is)isse an t*e pre&i)inar' in/$n(tion iss$e in (onne(tion t*ere-it*.te . t*e app&i(ant respe(tin+ t*e s$%/e(t o. # A pre&i)inar' in/$n(tion )a' %e +rante -*en it is esta%&is*e > 4a9 T*at t*e app&i(ant is entit&e to t*e re&ie. t*e a(ts or a(ts (o)p&aine o.SECTION <.. T*e Or ers ate !$ne <C. (o$rt. Moreover.. Davi e. . as ear&ier is($sse . 4%9 T*at t*e (o))ission. or is pro($rin+ or s$. t*e (ase %e. t*e' )$st s$. eit*er . %ot* t*e tria& (o$rt an t*e appe&&ate (o$rt t*at t*ere )a' %e serio$s +ro$n s to n$&&i. sai ri+*t. s$(* re&ie. Respon ents o not en' t*eir in e%te ness.erin+ to %e one. 7888 an O(to%er 6.' t*e provisions o.or iss$an(e o. Ma. (on($r. an a(t or a(ts..ati.

a p&anne ta. respon ents. vs. "a)a)oto.$o Nis*ino .2"*. t*e pertinent portions o. t*e s$%/e(t )atters is($sse -it* )e %' Mr. BA5O. a&so a !apanese nationa&. 7CE. 2. In 78=A. t*e a$t*ori. Do(e9 a vise "a)a)oto %' &etter ate O(to%er <C. . sto(. o. petitioner. I. e:$iva&ent to ACE o. O(to%er @8t*.t J 7 $nit Dr$)s J 6 $nits To++&in+ )a(*ine J @ $nits .R. t*e a$t*ori.ro) !apan.&e(te ear&ier. o. a (orporation en+a+e prin(ipa&&' in &eat*er tannin+. one o. 4NLII9. sto(. R'$i(*i "a)a)oto 4"a)a)oto9. *erein respon ents.no-n as Nis*ino Leat*er In $stries. "a)a)oto an t*e ot*er respon ent. No. BA5O -as &ater (*an+e to. a !apanese nationa&.$o Nis*ino 4Nis*ino9.or+e a Me)oran $) o. petitioner.o&&o-in+ )a(*iner'He:$ip)ent *ave %een (ontri%$te %' 'o$ to t*e (o)pan'> Sp&ittin+ )a(*ine J 7 $nit Sa))in+ )a(*ine J 7 $nit 3or. T*e (orporate na)e o. an -*i(* I a) no. 222 222 222 7@. %ase on t*e &etter o. o. an I5UO NISHINO. its ($rrent na)e NLII. INC. 7887." DECISION CARPIO?(ORALES. Do(e 4Att'. "os*ino%$ an Nis*ino1s (o$nse& Att'. or+ani. re $(in+ "a)a)oto1s invest)ent t*erein to. G. In(.eover o. Ma(*iner' an E:$ip)ent> T*e . J pIn 78=<.&i. I. A+ree)ent $n er -*i(* t*e' a+ree to enter into a /oint vent$re -*erein Nis*ino -o$& a(:$ire s$(* n$)%er o. Mr. NLII %' Nis*ino -*o -o$& %$'Jo$t t*e s*ares o. t*e ne+otiations. s*ares o. %' *is (&ai). In t*e (o$rse o.o Enterprises Mani&a. as re. Nis*ino an *is %rot*er "os*ino%$ Nis*ino 4"os*ino%$9 a(:$ire )ore t*an ACE o. BA5O. -*i(* . Ne+otiations s$%se:$ent&' ens$e in &i+*t o. "os*ino%$ Nis*ino 'ester a'..e (apita& sto(. In(orporate 4BA5O9. Ap!43 1+. 15. &ess t*an 7CE a((or in+ to Nis*ino.e (apita& sto(.o&&o-> Here$n er is a si)p&e )e)oran $) o. Event$a&&'.SECOND DIVISION R#UIC&I #A(A(OTO.e $n er P*i&ippine &a-s Ba. E))an$e& G. NIS&INO LEAT&ER INDUSTRIES..trans)ittin+ to 'o$. no.

isposin+ t*$s> BHERE3ORE. rep&evin a. soonest. 788K. 4Un ers(orin+ s$pp&ie 9 On appea&.o$n t*at t*e )a(*ineries an e:$ip)ent (&ai)e %' "a)a)oto are (orporate propert' o.ees an &iti+ation e2penses. as t*e ri+*t. 0(on itione on F"a)a)oto1sG se&&Jo$t to . a&&e+in+ t*at t*e' s$.ore t*e Re+iona& Tria& Co$rt 4RTC9 o. an (osts o. attorne'1s . s$(* )a(*ines is e $(te . . %' De(ision o. )ora& an e2e)p&ar' a)a+es. P*i&ippine C$rren('? 4<9 is)issin+ e. 'o$r (o))ents on a&& t*e a%ove. t*e Ma. !$ne 8. 5in &' &et )e .or t*e a-ar to t*e) o.*o& ers an Boar o. T*e tria& (o$rt.i&e on !an$ar' 7K.CCC. )erit? an 469 or erin+ e.Re+ar in+ t*e a%ove )a(*ines.no. s$(* &etter. NLII. part o.ro) 'o$r an Ba..ati a (o)p&aint a+ainst t*e) . *is e:$it' in NLII an s*o$& t*$s %e treate as (orporate propert'? an t*at t*e a%oveJsai &etter o. Appea&s *e& in . t*e )a(*ineries in :$estion. NLII an )a' not t*$s %e retrieve -it*o$t t*e a$t*orit' o. "a)a)oto atte)pte to re(over t*e )a(*ineries an e:$ip)ent -*i(* -ere.$re per)anent? 4@9 or erin+ e. *is entire e:$it'0. e(i e t*e (ase in .$& o-ner an possessor o. respon ents. sei. Dire(tors o. t*e Co$rt o. = In t*eir Ans-er -it* Co$nter(&ai). Co$nter(&ai). t*e va&$e o.avor o. . "a)a)oto1s (apita& (ontri%$tions in (onsi eration o. t*e Co$rt o. B' -a' o. attorne'1s . t*e -rit o.o$n no +ro$n to s$pport respon ents1 Co$nter(&ai). o. an )a. t*e appe&&ate (o$rt . *erein respon ents an a((or in+&' reverse t*e RTC e(ision an is)isse t*e (o)p&aint.$re via t*e i)p&e)entation o. -*i(* -i&& %e pai to 'o$. Ma.or &a(. -*i(* proposa& -as 'et to %e a$t*ori. (orporate . &iti+ation in t*e a)o$nt o. pra'e . 'o$ )a' ta. In so *o& in+. *is invest)ent in t*e (orporation.en ants to pa' t*e (osts o. Att'. respon ents (&ai)e t*at t*e )a(*ineries an e:$ip)ent s$%/e(t o. Dire(tors? an t*at petitioner1s ar+$)ent t*at Nis*ino an "a)a)oto (annot *i e %e*in t*e s*ie& o.ees an e2penses o.en ants1 (o$nter(&ai)s .. "a)a)oto. . At t*e sa)e ti)e. Bran(* 6K o.o.t' T*o$san Pesos 4PKC. nor oes petitioner1s invo(ation o. 3i. t*e o(trine o.or rep&evin.ter "a)a)oto .e t*e) o$t -it* 'o$ 4. SO ORDERED. 'o$ -ant. s$it. s$it. Nis*ino o.i&e a %on . 788@ %e. pro)issor' estoppe&.en ants to pa' p&ainti. rep&evin over t*e )a(*ineries an e:$ip)ent.or) part o.CC9.o1s (apita& (ontri%$tions.ere a)a+e $e to t*e sei.ati RTC iss$e a -rit o.or 'o$r o-n $se an sa&e9 i.e %' t*e sto(.i(tion oes not &ie. Appea&s . %$t *e -as . ra-in+ "a)a)oto to .avor o. provi e .r$strate %' respon ents..in+ t*e -rit o. Do(e to "a)a)oto -as )ere&' a proposa&. rep&evin . 222 222 222 4E)p*asis an $n ers(orin+ s$pp&ie 9 On t*e %asis o. %' "a)a)oto1s a )ission. t*e NLII Boar o. /$ +)ent is *ere%' ren ere > 479 e(&arin+ p&ainti.

.$o Fan G "os*ino%$. ot*er sto(.es t*e e(isions. . Un er t*e Corporation La-.or an in %e*a&. 222 222 222 T*e . B. (o)p&'in+ -it* t*e )ini)$) re:$ire)ents o. . Its )in$tes are paper )in$tes. I. . T*e Co)pan' *ar &' *o& s %oar )eetin+s. . "a)a)oto ar+$es. 222 222 222 . Appea&s> A. . .. (orporate . Dire(tors0. t*e (orporation.eJover o. t*e Boar -*o *ave not +iven t*eir approva&. t*e iss$e as to t*e o-ners*ip o..in+ respon ent Nis*ino to a(t . . It *as an ina(tive %oar . . Ur+in+ t*is Co$rt to pier(e t*e vei& o. T*e Co$rt *o& s in t*e ne+ative.. . "os*ino%$.i&e t*e present petition. . vi. an "a)a)oto -ere t*e o-ners t*ereo. t*ere.*o& ers %ein+ on&' . "os*ino%$ is t*e 'o$n+er %rot*er o. no ot*er )e)%ers o. IN HOLDING THAT THE VEIL O3 CORPORATE 3ICTION SHOULD NOT BE PIERCED IN THE CASE AT BAR. . *e (annot %in t*e &atter.$o *i)se&.T*e Co$rt o. t*e Ma(*inerFiesG never (a)e $p. $n&ess ot*er-ise provi e . T*e @CE -ent to no one e&se %$t I. . Appea&s *avin+ enie *is Motion . t*e presen(e o. . On&' I. Neit*er i t*e iss$e on t*e proper pro(e $re to %e ta. %o$n t*e (orporation. a person. not*in+ )ore. t*e Nis*FiGnos. I.$o )a. -*i(* a )itte &' -ere part o.i(tion.$o an *as no sa' at a&& in t*e %$siness.> D$rin+ t*e ne+otiations. a %$siness (on $it. on -*et*er t*e a vi(e in t*e &etter o. t*e petition *in+es. Do(e t*at "a)a)oto )a' retrieve t*e )a(*ineries an e:$ip)ent. a(tion t*e Co)pan' e(i es to o or not to o epen s not on t*e 0ot*er )e)%ers o. *is invest)ent. or a&ter e+o o.$o. C. t*e &a-. T*ere -ere. -it*o$t a Boar Reso&$tion a$t*ori.a(t t*at t*e parties starte at a ACJ<C ratio an "a)a)oto1s per(enta+e e(&ine to 7CE oes not )ean t*e @CE -ent to ot*ers. T*e reso&$tion o. . In ee . Dire(tors. . t*e Co)pan' (o)e $p sin(e I. It epen s on -*at I.or Re(onsi eration. t*e )ere o-ners*ip %' a .ore. . IN HOLDING THAT RESPONDENTS ARE NOT LIABLE 3OR ATTORNE"1S 3EES. @D 4E)p*asis an $n ers(orin+ s$pp&ie 9 B*i&e t*e vei& o. IN HOLDING THAT THE DOCTRINE O3 PROMISSOR" ESTOPPEL DOES NOT APPL" TO THE CASE AT BAR.en to e2e($te t*e (o)p&ete ta. . B*at (o$rse o. t*e ire(tors are ire(tors in na)e on&' an are t*ere to o t*e %i in+ o. t*e Boar o.or t*e p$rpose o. . . (orporate po-ers are e2er(ise %' t*e Boar o. . o. T*e Co)pan' is %$t a )ere instr$)enta&it' o. Att'. in t*e )ain. "a)a)oto .$o an "os*ino%$ e(i e.a$&tin+ t*e Co$rt o. separate (orporate persona&it' )a' %e pier(e -*en t*e (orporation is )ere&' an a /$n(t.

t*e o(trine o. a (orporation is not %' itse&. an i. . t*$s> Un er t*e o(trine o. t*e Co)pan'. -*at t*e' *ave represente t*e' -i&& o.sin+&e sto(. sai )a(*ines -o$& %e e $(te . not on&' o.1s &e+a& ri+*ts? an <. a re. -i&& or e2isten(e o.. T*e a%sen(e o. or is*onest an $n/$st a(t in (ontravention o.. $t' )$st pro2i)ate&' (a$se t*e in/$r' or $n/$st &oss (o)p&aine o.ra$ or -ron+.or). a stat$tor' or ot*er positive &e+a& $t'.*o& er o. S$(* (ontro& )$st *ave %een $se %' t*e e.inan(es %$t o. estoppe& )a' arise . an' one o. .ra$ or -o$& res$&t in ot*er in/$sti(e.o&&o-> 07. t*ere is no s*o-in+ t*at Nis*ino $se t*e separate persona&it' o. Bit*o$t a e)onstration t*at an' o. %$t (o)p&ete o)ination. Contro&.ro) *is (apita& (ontri%$tion . (ontro&.e o$t t*e Ma(*iner' i. "a)a)oto ar+$es. t*e -ron+ oin+ or $n/$st a(t in (ontravention o. .ir)e t*at "a)a)oto )a' ta. it oes not app&'.en ant to (o))it . i. po&i(' an %$siness pra(ti(e in respe(t to t*e transa(tion atta(.t*e (orporation operate an t*e in ivi $a& e. I. Havin+ e2press&' +iven "a)a)oto. . t*e (apita& sto(. respon ents s*o$& not %e a&&o-e to t$rn aro$n an o t*e e2a(t opposite o.in+ o. . t*e app&i(a%i&it' o. t*e p&ainti. . 3or t*is p$rpose ne+otiations -ere *a %et-een t*e parties. to perpet$ate t*e vio&ation o. t*ese e&e)ents prevents 0pier(in+ t*e (orporate vei&. In t*e (ase at %ar. T*e a. "a)a)oto -as e2press&' a vise t*at *e (o$& ta..ro) t*e Co)pan' an'ti)e.0 In app&'in+ t*e 1instr$)enta&it'1 or 1a&ter e+o1 o(trine. . . .$o an "os*ino%$ -ante "a)a)oto o$t o.ro) t*e )a. T*e e&e)ents eter)inative o.. its o-n? @. 222 222 222 .i(ient +ro$n to isre+ar t*e separate (orporate persona&it'. NLII to $n/$st&' a(t or o -ron+ to "a)a)oto in (ontravention o. in anot*er vein. a (orporation. t*e (o$rts are (on(erne -it* rea&it' an not .0 4Ita&i(s in t*e ori+ina&? e)p*asis an $n ers(orin+ s$pp&ie 9 In re&ation to t*e se(on e&e)ent.oresai (ontro& an %rea(* o. t*e evi&s so$+*t to %e prevente %' t*e o(trine is present. pier(in+ t*e vei& o.or(e it -o$& %e virt$a&&' to san(tion t*e perpetration o.en ant1s re&ations*ip to t*at operation. a p&ainti. *is &e+a& ri+*ts. to isre+ar t*e separate /$ri i(a& persona&it' o. even t*o$+* -it*o$t (onsi eration. t*e Letter. provi e t*at t*e va&$e o. not )ere )a/orit' or (o)p&ete sto(.e so t*at t*e (orporate entit' as to t*is transa(tion *a at t*e ti)e no separate )in .s o.a(t it -as re&ie $pon.1s &e+a& ri+*ts )$st %e (&ear&' an (onvin(in+&' esta%&is*e ? it (annot %e pres$)e . it -as inten e t*at t*e pro)ise s*o$& %e re&ie $pon an in . a pro)ise. a s$. In para+rap* t-e&ve 47@9 o.i(tion .$o *i)se&. *e -ante to so. (orporate . even a&& or near&' a&& o. pro)issor' estoppe&.$sa& to en. t*at pro)issor' estoppe& &ies a+ainst respon ents. . (on. -it* *o. .e o$t t*e Ma(*iner' . t*ro$+* t*e Letter an t*ro$+* a s$%se:$ent )eetin+ at t*e Mani&a Penins$&a -*ere I.

(orporate assets. . t*e petition is DENIED.. propert'. SO ORDERED.0 B*at -as t*$s pro. To san(tion respon ents1 atte)pt to eva e t*eir o%&i+ation -o$& %e to san(tion t*e perpetration o. t*e (orporation. t*e (apita& propert' o.$rt*er stren+t*ene $rin+ t*eir )eetin+ at t*e Mani&a Penins$&a.ere to "a)a)oto -as not a pro)ise. -*i(* (o)prise "a)a)oto1s invest)ent in NLII. $n er Arti(&e 77=7 o.o&&o-e %' a re:$est . (on($r. (orporate assets an propert' (annot %e )a e to epen on t*e -*i)s an (apri(es o.. Ve&as(o.er. t*e &etter is . L$is$)%in+. an Brion. t*e a(:$isition o. na)e&'..or a&&o-in+ "a)a)oto to ta. s$%/e(t to *is a((eptan(e. Bit*o$t a((eptan(e.*o& ers.or t*e pa')ent o. o.o&&o-e . its sto(. *is a+ree)ent to t*e e $(tion o. T*at -as t*e p$rpose o.er pro $(es no o%&i+ation.0 In t*e (ase at %ar. (orporate (re itors -*i(* are pre.e t*e )a(*ineries an e:$ip)ent.erre over t*e sto(.Respon ents (annot no.i(ia& &eave. T*$s.. is on o. t*at t*e a. Un er t*e tr$st . t*e sto(. no proo. t*ereo. t*eir va&$e . t*e (orporation $n&ess t*e in ispensa%&e (on itions an pro(e $res . Tin+a.i(ers. !r. an ot*er assets o. ri+*ts.ar+$e t*at t*e' i not inten . a (orporation is not t*e propert' o. t*ere is no s*o-in+ o. *is interests in NLII. . BHERE3ORE..or "a)a)oto to re&' $pon t*e Letter. t*e (apita& sto(. <D t*$s re)aine part o. !. 0FiGn (on itiona& o%&i+ations. Costs a+ainst petitioner. *avin+ %een presente . soonest. T*e istri%$tion o.or "a)a)oto to +ive *is 0(o))ents on a&& t*e a%ove. t*e Civi& Co e. T*e )a(*ineries an e:$ip)ent. a (orporation are re+ar e as e:$it' in tr$st .ra$ an in/$sti(e a+ainst petitioner. "a)a)oto1s a&&e+ation t*at *e a+ree to t*e (on ition re)aine /$st t*at. t*e Letter to %e+in -it*.. t*e event -*i(* (onstit$tes t*e (on ition. It is sett&e t*at t*e propert' o.ore)entione para+rap* 7@ o.*o& ers or )e)%ers. as -e&& as t*e e2tin+$is*)ent or &oss o. or ire(tors o.or t*e prote(tion o. PetitionerFsG in .*o& ers in t*e istri%$tion o. !!.a(t. a )ere o. s*a&& epen $pon t*e *appenin+ o. (o)p&ian(e -it* t*e (on ition .$n o(trine. %$t a )ere o.. re&ie $pon sai Letter an s$(* re&ian(e -as . 4Un ers(orin+ s$pp&ie 9 It %ears notin+.. t*ose a&rea ' a(:$ire . (orporate (re itors are . *o-ever.ro) *is (apita& (ontri%$tion $e *i) in t*e %$'Jo$t o.