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FACTS:
Petitioners William Yao, Sr. and several others were incorporators and officers of
Masagana Gas Corporation.
In 2003, the NBI, acting on reports that petitioners unlawfully and in violation of
intellectual property rights of Petron Corporation and Pilipinas Shell, produce, sell,
distribute LPG products using LPG cylinders owned by Petron and Shell and by virtue
of search warrants, raided the premises of Masagana and confiscated, among other
things, the motor compressor and refilling machine owned by Masagana.
Masagana Corporation intervened in the case and asked for the return of said
pieces of equipment. It argued that even if the same was being used by petitioners in
their unlawful activity, the equipment cannot be confiscated because having a
personality separate and distinct from that of its incorporators, directors and officers,
said properties are owned by the corporation and not by the petitioners.
ISSUE:
Whether or not the doctrine of piercing the veil of corporate entity is applicable
in the case.
RULING: