EMILIO CANO ENTERPRISES INC VS COURT OF INDUSTRIAL RELATIONS

GR No. L-20502, 26 February 1965

Facts:

- Emilio, Ariston and Rodolfo, all surnamed Cano, were the respondents in a
complaint for an unfair labor practice in their capacity as the president, field
supervisor and manager, respectively.
- Judge Bautista found Emilio and Rodolfo guilty of unfair labor practice and
ordered the reinstatement of Honorata Cruz with backwages.
- However, the order of execution was directed against the properties of Emilio
Cano Enterprises, Inc.

Issue:

WON the judgment rendered against Emilio and Rodolfo, being the officials of the
corporation, be made effective against the properties of Emilio Cano Enterprises, Inc.

Held:

- Yes, the answer must be in the affirmative.

- While the corporation has a separate and distinct personality from its members
or stockholders, it must be taken into consideration that Emilio Cano
Enterprises, Inc. is a family corporation where the incorporators and directors
belong to one single family.
- Here is the instance where the corporation and its members can be
considered as one.
- And to hold such entity liable for the acts of its members is not to ignore the legal
fiction but merely to give meaning to the principle that such fiction cannot be
invoked if its purpose is to use as a shield to further an end subversive
of justice.
- That concept cannot be extended to appoint beyond its reason and policy.
- Having been sued officially , Emilio and Rodolfo, in their connection with the
case must be deemed to be impressed with the representation of the corporation.