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LYCEUM OF THE PHILS VS COURT OF APPEALS CITATIONS

G.R. No. 101897. March 5, 1993.  SEC ruled in favor of petitioner, but the same was reversed on appeal
to the SEC en banc, CA affirmed
Facts:
 Petitioner is an educational institution duly registered with the Issue: Whether or not the corporate names of private respondent
Securities and Exchange Commission ("SEC"). When it first institutions are "identical with, or deceptively or confusingly similar" to that
registered with the SEC on 21 September 1950, it used the corporate of the petitioner institution.
name Lyceum of the Philippines, Inc. and has used that name ever
since. Held:
 On 24 February 1984, petitioner instituted proceedings before the  No. True enough, the corporate names of private respondent
SEC to compel the private respondents, which are also educational entities all carry the word "Lyceum" but confusion and deception
institutions, to delete the word "Lyceum" from their corporate names are effectively precluded by the appending of geographic names
and permanently to enjoin them from using "Lyceum" as part of their to the word "Lyceum." Thus, we do not believe that the "Lyceum
respective names. of Aparri" can be mistaken by the general public for the Lyceum
 Some of the private respondents actively participated in the of the Philippines, or that the "Lyceum of Camalaniugan" would
proceedings before the SEC, the dates of their original SEC be confused with the Lyceum of the Philippines. In the name of
registration being set out below opposite their respective names: o the petitioner, "Lyceum" appears to be a substitute for
Western Pangasinan Lyceum — 27 October 1950 "university;" in other places, however, “Lyceum," or "Liceo" or
 Lyceum of Cabagan — 31 October 1962 "Lycee" frequently denotes a secondary school or a college.
 Lyceum of Lallo, Inc. — 26 March 1972
 Lyceum of Aparri — 28 March 1972  DOCTRINE OF SECONDARY MEANING: The doctrine of
 Lyceum of Tuao, Inc. — 28 March 1972 secondary meaning originated in the field of trademark law. Its
 Lyceum of Camalaniugan — 28 March 1972 application has, however, been extended to corporate names
 Petitioner had sometime before commenced in the SEC a proceeding since the right to use a corporate name to the exclusion of others
against the Lyceum of Baguio, Inc. to require it to change its is based upon the same principle which underlies the right to use
corporate name and to adopt another name not "similar [to] or a particular trademark or trade name.
identical" with that of petitioner. The SEC held that the corporate  The question which arises, therefore, is whether or not the use by
name of petitioner and that of the Lyceum of Baguio, Inc. were petitioner of "Lyceum" in its corporate name has been for such
substantially identical because of the presence of a "dominant" word, length of time and with such exclusivity as to have become
i.e., "Lyceum," the name of the geographical location of the campus associated or identified with the petitioner institution in the mind of
being the only word which distinguished one from the other corporate the general public.
name. The SEC also noted that petitioner had registered as a  No evidence was ever presented in the hearing before the
corporation ahead of the Lyceum of Baguio, Inc. in point of time, and Commission which sufficiently proved that the word 'Lyceum' has
ordered the latter to change its name to another name "not similar or indeed acquired secondary meaning in favor of the appellant. If
identical [with]" the names of previously registered entities. there was any of this kind, the same tend to prove only that the
 Petitioner then wrote all the educational institutions it could find using appellant had been using the disputed word for a long period of
the word "Lyceum" as part of their corporate name, and advised them time.
to discontinue such use of "Lyceum."
THE MISSIONARY SISTERS OF OUR LADY OF FATIMA The Missionary Sisters of Our Lady of Fatima is a religious and
Vs AMANDO V. ALZONA, ET AL. charitable group whose primary mission is to take care of the
G.R. No. 224307, August 06, 2018 abandoned and neglected elderly persons. It became a corporation
August 31, 2001. On the other hand, Purificacion Alzona is a
FACTS: benefactor of the Missionary Sisters. In August 29, 2001, she
The Missionary Sisters of Our Lady of Fatima is a religious and executed a deed of donation inter vivos of her house and lot in
charitable Laguna to the Missionary Sisters. The donation was accepted by the
group whose primary mission is to take care of the abandoned and Superior General of the Missionary Sisters on the same date. The
neglected
Missionary Sisters then filed an application before the BIR that they
elderly persons. It became a corporation August 31, 2001.
On the other hand, Purificacion Alzona is a benefactor of the would be exempted from donor's tax as a religious organization.
Missionary
The application was granted by the BIR. The Register of Deeds,
Sisters. In August 29, 2001, she executed a deed of donation inter
vivos of her however, denied the registration on account of the Affidavit of
house and lot in Laguna to the Missionary Sisters. The donation was Adverse Claim dated September 26, 2001 filed by the brother of
accepted Purificacion, respondent Amando. Purificacion died without any
by the Superior General of the Missionary Sisters on the same date. issue in October 2001, and was survived only by her brother of
The Missionary Sisters then filed an application before the BIR that full blood, Amando, who nonetheless died during the pendency of
they this case and was represented and substituted by his legal heirs.
would be exempted from donor's tax as a religious organization.
The In 2002, Amando filed a Complaint before the RTC, seeking to annul
application was granted by the BIR. The Register of Deeds,
the Deed executed between Purificacion and the petitioner, on the
however, denied
the registration on account of the Affidavit of Adverse Claim dated ground that at the time the donation was made, the latter was
September not registered with the SEC and therefore has no juridical
26, 2001 filed by the brother of Purificacion, respondent Amando. personality and cannot legally accept the donation.
Purificacion died without any issue in October 2001, and was
survived ISSUE/S:
only by her brother of full blood, Amando, who nonetheless died
during the A. Whether the petitioner is a de facto corporation. –NO
pendency of this case and was represented and substituted by his B. Whether or not the donation was valid considering that the
legal heirs. Missionary Sisters is not yet registered as a corporation at the
I n time of donation - YES
2002, Amando filed a Complaint before the RTC, seeking to annul the
Deed executed between Purificacion and the petitioner, on the
ground that at
the time the donation was made, the latter was not registered Ruling:
with the SEC
and therefore has no juridical personality and cannot legally A. The RTC erred in holding that the petitioner is a de facto
accept the corporation.
donation.
Jurisprudence settled that "[t]he filing of articles of incorporation and who has assumed an obligation in favor of a non-existent corporation,
the issuance of the certificate of incorporation are essential for the having
existence of a de facto corporation." In fine, it Is the act of transacted with the latter as if it was duly incorporated, is
prevented from
registration with SEC through the issuance of a certificate of
denying the existence of the latter to avoid the enforcement of the
incorporation that marks the beginning of an entity's corporate contract.
existence. Whether or not the donation was valid considering that the
Missionary
Petitioner filed its Articles of Incorporation and by-laws on August 28, Sisters is not yet registered as a corporation at the time of donation
2001. However, the SEC issued the corresponding Certificate of RULING:
Incorporation only on August 31, 2001, two days after Purificacion The Supreme Court ruled in the affirmative as it applied the doctrine
executed a Deed of Donation on August 29, 2001. Clearly, at the of
time the donation was made, the Petitioner cannot be considered a corporation by estoppel.
corporation de facto. The Missionary Sisters filed its Articles of Incorporation and by-
laws on
Whether or not the donation was valid considering that the August 28, 2001. However, the SEC issued the corresponding
Missionary Certificate of
Sisters is not yet registered as a corporation at the time of donation Incorporation only on August 31, 2001, two (2) days after
RULING: Purificacion
The Supreme Court ruled in the affirmative as it applied the doctrine executed a Deed of Donation on August 29, 2001. Clearly, at
of the time the
corporation by estoppel. donation was made, they cannot be considered a corporation de
The Missionary Sisters filed its Articles of Incorporation and by- facto. Rather,
laws on a review of the attendant circumstances reveals that it calls for the
August 28, 2001. However, the SEC issued the corresponding application
Certificate of of the doctrine of corporation by estoppel as provided for under
Incorporation only on August 31, 2001, two (2) days after Section 21 of
Purificacion the Corporation Code.
executed a Deed of Donation on August 29, 2001. Clearly, at The doctrine of corporation by estoppel is founded on principles of
the time the equity
donation was made, they cannot be considered a corporation de and is designed to prevent injustice and unfairness. In which
facto. Rather, case, a person
a review of the attendant circumstances reveals that it calls for the who has assumed an obligation in favor of a non-existent corporation,
application having
of the doctrine of corporation by estoppel as provided for under transacted with the latter as if it was duly incorporated, is
Section 21 of prevented from
the Corporation Code. denying the existence of the latter to avoid the enforcement of the
The doctrine of corporation by estoppel is founded on principles of contract.
equity B. The Supreme Court ruled in the affirmative as it applied the
and is designed to prevent injustice and unfairness. In which doctrine of corporation by estoppel.
case, a person
The Missionary Sisters filed its Articles of Incorporation and by-laws The SEC OGC disagreed with petitioner's argument that the case of Lyceum
on August 28, 2001. However, the SEC issued the corresponding of the Philippines, Inc. v. Court of Appeals15 applies since the word
Certificate of Incorporation only on August 31, 2001, two (2) days after "lyceum" is clearly descriptive of the very being and defining purpose of
Purificacion executed a Deed of Donation on August 29, 2001. an educational corporation, unlike the term "De La Salle" or "La Salle."16
Hence, the Court held in that case that the Lyceum of the Philippines, Inc.
Clearly, at the time the donation was made, they cannot be
cannot claim exclusive use of the name "lyceum."
considered a corporation de facto. Rather, a review of the attendant
circumstances reveals that it calls for the application of the doctrine of On appeal, both SEC en banc and Court of Appeals affirmed the decision of
corporation by estoppel as provided for under Section 21 of the the SEC OSG. Hence this present petition.
Corporation Code.
Issue:
The doctrine of corporation by estoppel is founded on principles of
 Whether or not petitioner's corporate name is identical or deceptively
equity and is designed to prevent injustice and unfairness. In which
or confusingly similar to that of the respondents
case, a person who has assumed an obligation in favor of a non-
existent corporation, having transacted with the latter as if it was duly RULING:
incorporated, is prevented from denying the existence of the latter to
avoid the enforcement of the contract. YES. The Supreme Court held that a corporation's right to use its corporate
and trade name is a property right, a right in rem, which it may assert and
De La Salle Montessori International of Malolos vs. De La Salle Brothers protect against the world in the same manner as it may protect its tangible
G.R. No. 205548 property, real or personal, against trespass or conversion. It is regarded, to a
certain extent, as a property right and one which cannot be impaired or
FACTS: defeated by subsequent appropriation by another corporation in the same
field
The Petitioner reserved with the SEC its corporate name De La Salle
Montessori International Malolos, Inc. from June August 2007,the SEC Petitioner's assertion that the words "Montessori International of Malolos,
issued a certificate of incorporation to petitioner and DepEd Region III Inc." are four distinctive words that are not found in respondents' corporate
granted petitioner government recognition for its pre-elementary and names so that their corporate name is not identical, confusingly similar,
elementary and for its secondary courses. patently deceptive or contrary to existing laws,38 does not avail. As correctly
held by the SEC OGC, all these words, when used with the name "De La
The respondents, De La Salle Brothers et al. filed a petition with the SEC
Salle," can reasonably mislead a person using ordinary care and
seeking to compel petitioner to change its corporate name, claiming
discretion into thinking that petitioner is an affiliate or a branch of, or is
that petitioner's corporate name is confusingly similar to that which
likewise founded by, any or all of the respondents, thereby causing
respondents have acquired a prior right to use, and that respondents'
confusion.
consent to use such name was not obtained.
Generic terms are those which constitute "the common descriptive name of
Thus, The SEC-OGC issued an Orderdirecting petitioner to change or
an article or substance," or comprise the "genus of which the particular
modify its corporate name. It held, among others, that respondents have
product is a species," or are "commonly used as the name or description of a
acquired the right to the exclusive use of the name "La Salle" with freedom
kind of goods," or "characters," or "refer to the basic nature of the
from infringement by priority of adoption, as they have all been incorporated
wares or services provided rather than to the more idiosyncratic
using the name ahead of petitioner.
characteristics of a particular product," and are not legally protectable
In that case, the Lyceum of the Philippines, Inc., an educational institution
registered with the SEC, commenced proceedings before the SEC to
compel therein private respondents who were all educational institutions,
to delete the word "Lyceum" from their corporate names and
permanently enjoin them from using the word as part of their respective
names

The Court there held that the word "Lyceum" today generally refers to
a school or institution of learning. It is as generic in character as the word
"university." Since "Lyceum" denotes a school or institution of learning, it is
not unnatural to use this word to designate an entity which is organized and
operating as an educational institution.

Here, the phrase "De La Salle" is not generic in relation to respondents. It is


not descriptive of respondent's business as institutes of learning, unlike
the meaning ascribed to "Lyceum."

There is thus no similarity between the Lyceum of the Philippines case and
this case that would call for a similar ruling.

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