agency, 1st page, full

7/23/2019 Agency, 1st Page, FULL

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G.R. No. L-15568 November 8, 1919

W. G. PHILPOTTS,petitioner,vs.

PHILIPPIN !"N#$"%T#RING %O!P"N& 'n( $. N. )RR&,respon(ents.

L'*ren+e 'n( Ross or petitioner.%rosse( 'n( O/)rien or (een('nts.

STRT,0.

T2e petitioner, W. G. P2ipotts, ' sto+32o(er in t2e P2iippine !'n4'+t4rin %omp'n, one o

t2e respon(ents 2erein, see3s b t2is pro+ee(in to obt'in ' *rit om'n('m4sto +ompe t2erespon(ents to permit t2e p'inti7, in person or b some '4t2orie( 'ent or 'ttorne, to inspe+t'n( e'mine t2e re+or(s o t2e b4siness tr'ns'+te( b s'i( +omp'n sin+e 0'n4'r 1, 1918. T2epetition is e( oriin' in t2is +o4rt 4n(er t2e '4t2orit o se+tion 515 o t2e %o(e o %iviPro+e(4re, *2i+2 ives to t2is trib4n' +on+4rrent :4ris(i+tion *it2 t2e %o4rt o $irst Inst'n+e in

+'ses, 'mon ot2ers, *2ere 'n +orpor'tion or person 4n'*4 e+4(es t2e p'inti7 rom t2e4se 'n( en:oment o some ri2t to *2i+2 2e is entite(. T2e respon(ents interpose( ' (em4rrer,'n( t2e +ontrovers is no* beore 4s or t2e (etermin'tion o t2e ;4estions t24s presente(.

T2e rst point m'(e 2's reeren+e to ' s4ppose( (ee+t o p'rties, 'n( it is s'i( t2't t2e '+tion+'n not be m'int'ine( :oint ''inst t2e +orpor'tion 'n( its se+ret'r *it2o4t t2e '((ition ot2e 'e'tion t2't t2e 'tter is t2e +4sto(i'n o t2e b4siness re+or(s o t2e respon(ent +omp'n.

) t2e p'in 'n4'e o se+tions 515 'n(


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respon(ent +orpor'tion or 'n o its oD+i's 2's re4se( to 'o* t2e petitioner 2imse toe'mine 'nt2in re'tin to t2e '7'irs o t2e +omp'n, 'n( t2e petition pr's or ' peremptoror(er +omm'n(in t2e respon(ents to p'+e t2e re+or(s o ' b4siness tr'ns'+tions o t2e+omp'n, (4rin ' spe+ie( perio(, 't t2e (ispos' o t2e p'inti7 or 2is (4 '4t2orie( 'ent or'ttorne, it bein evi(ent t2't t2e petitioner (esires to eer+ise s'i( ri2t t2ro42 'n 'ent or'ttorne. In t2e 'r4ment in s4pport o t2e (em4rrer it is +on+e(e( b +o4nse or t2erespon(ents t2't t2ere is ' ri2t o e'min'tion in t2e sto+32o(er r'nte( 4n(er se+tion 51 ot2e %orpor'tion L'*, b4t it is insiste( t2't t2is ri2t m4st be eer+ise( in person.

T2e pertinent provision o o4r '* is o4n( in t2e se+on( p'r'r'p2 o se+tion 51 o "+t No. 1@59,*2i+2 re'(s 's oo*s FT2e re+or( o ' b4siness tr'ns'+tions o t2e +orpor'tion 'n( t2emin4tes o 'n meetin s2' be open to t2e inspe+tion o 'n (ire+tor, member or sto+32o(er ot2e +orpor'tion 't re'son'be 2o4rs.F

T2is provision is to be re'( o +o4rse in +onne+tin *it2 t2e re'te( provisions o se+tions 51 'n(5


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invove( in t2e +'se it m' be bro42t o4t 't ' more '(v'n+e( st'e o t2e

pro+ee(ins.'*p2i.net

T2e (em4rrer is overr4e(= 'n( it is or(ere( t2't t2e *rit om'n('m4ss2' iss4e 's pr'e(,4ness *it2in 5 ('s rom noti+'tion 2ereo t2e respon(ents 'ns*er to t2e merits. So or(ere(.

R"!ON R"LLOS, "(ministr'tor o t2e st'te o %ON%P%ION R"LLOS,petitioner,vs.

$LIK GO %H"N SONS R"LT& %ORPOR"TION 'n( %O#RT O$ "PP"LS,respon(ents.

Seno, !en(o' "sso+i'tes or petitioner.

R'mon 4terte or priv'te respon(ent.

!#MO P"L!",0.

T2is is ' +'se o 'n 'ttorne-in-'+t, Simeon R'os, *2o 'ter o 2is (e't2 o 2is prin+ip',%on+ep+ion R'os, so( t2e 'tter/s 4n(ivi(e( s2're in ' p'r+e o 'n( p4rs4'nt to ' po*er o

'ttorne *2i+2 t2e prin+ip' 2'( ee+4te( in 'vor. T2e '(ministr'tor o t2e est'te o t2e *ent to+o4rt to 2've t2e s'e (e+'re( 4ne'nor+e'be 'n( to re+over t2e (ispose( s2're. T2e tri' +o4rtr'nte( t2e reie pr'e( or, b4t 4pon 'ppe' t2e %o4rt o "ppe's 4p2o( t2e v'i(it o t2e s'e'n( t2e +omp'int.

Hen+e, t2is Petition or Revie* on +ertior'ri.

T2e oo*in '+ts 're not (isp4te(. %on+ep+ion 'n( Ger4n(i' bot2 s4rn'me( R'os *eresisters 'n( reistere( +o-o*ners o ' p'r+e o 'n( 3no*n 's Lot No. 598A o t2e %'('str'S4rve o %eb4 +overe( b Tr'nser %erti+'te o Tite No. 11116 o t2e Reistr o %eb4. On"pri


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"ter tri' t2e +o4rt' ;4oren(ere( :4(ment *it2 t2e oo*in (ispositive portion

". On P'inti7s %omp'int E

?1C e+'rin t2e (ee( o s'e, 2. F%F, n4 'n( voi( inso'r 's t2e one-2' pro-in(iviso s2're o%on+ep+ion R'os in t2e propert in ;4estion, E Lot 598A o t2e %'('str' S4rve o %eb4 E is+on+erne(=

?


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o t2e prin+ip' ' m'teri' '+tor in (eterminin t2e e' e7e+t o 'n '+t perorme( 'ter s4+2(e't2

)eore pro+ee(ins to t2e iss4es, We s2' brieQ rest'te +ert'in prin+ipes o '* reev'nt to t2em'tter tin(er +onsi(er'tion.

1. It is ' b'si+ 'iom in +ivi '* embo(ie( in o4r %ivi %o(e t2't no one m' +ontr'+t in t2en'me o 'not2er *it2o4t bein '4t2orie( b t2e 'tter, or 4ness 2e 2's b '* ' ri2t to

represent 2im.A

" +ontr'+t entere( into in t2e n'me o 'not2er b one *2o 2's no '4t2orit ort2e e' represent'tion or *2o 2's '+te( beon( 2is po*ers, s2' be 4nenor+e'be, 4ness it isr'tie(, epress or impie(, b t2e person on *2ose be2' it 2's been ee+4te(, beore it is

revo3e( b t2e ot2er +ontr'+tin p'rt.@"rti+e 1@A ?1C o t2e s'me %o(e 'so provi(es

"RT. 1@A. T2e oo*in +ontr'+ts 're 4nenor+e'be, 4ness t2e 're :4stie(

?1C T2ose entere( into in t2e n'me o 'not2er person b one *2o 2i - been iven no '4t2orit ore' represent'tion or *2o 2's '+te( beon( 2is po*ers= ...

O4t o t2e 'bove iven prin+ipes, spr4n t2e +re'tion 'n( '++ept'n+e o t2ere'tions2ip o

'en+*2ereb one p'rt, +'e( t2e prin+ip' ?m'n('nteC, '4t2ories 'not2er, +'e( t2e 'ent?m'n('t'rioC, to '+t or 'n( in 2is be2' in tr'ns'+tions *it2 t2ir( persons. T2e essenti'eements o 'en+ 're ?1C t2ere is +onsent, epress or impie( o t2e p'rties to est'bis2 t2ere'tions2ip= ?


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:4re 4pon t2e (e't2 o eit2er *it2o4t ne+essit or t2e 2eirs o t2e '+t to noti t2e 'ent o t2e

'+t o (e't2 o t2e ormer.9

T2e s'me r4e prev'is 't +ommon '* E t2e (e't2 o t2e prin+ip' e7e+ts inst'nt'neo4s 'n('bso4te revo+'tion o t2e '4t2orit o t2e 'ent 4ness t2e Po*er be +o4pe( *it2 'n

interest.1T2is is t2e prev'ent r4e in "meri+'n 04rispr4(en+e *2ere it is *e-sette( t2't 'po*er *it2o4t 'n interest +oner. re( 4pon 'n 'ent is (issove( b t2e prin+ip'/s (e't2, 'n('n 'ttempte( ee+4tion o t2e po*er 'ter*'r( is not bin(in on t2e 2eirs or represent'tives o

t2e (e+e'se(.11

A. Is t2e ener' r4e provi(e( or in "rti+e 1919 t2't t2e (e't2 o t2e prin+ip' or o t2e 'entetin4is2es t2e 'en+, s4b:e+t to 'n e+eption, 'n( i so, is t2e inst'nt +'se *it2in t2'te+eption T2't is t2e (etermin'tive point in iss4e in t2is iti'tion. It is t2e +ontention orespon(ent +orpor'tion *2i+2 *'s s4st'ine( b respon(ent +o4rt t2't not*it2st'n(in t2e (e't2o t2e prin+ip' %on+ep+ion R'os t2e '+t o t2e 'ttorne-in-'+t, Simeon R'os in sein t2eormer/s s2'm in t2e propert is v'i( 'n( enor+e'be in'sm4+2 's t2e +orpor'tion '+te( in oo('it2 in b4in t2e propert in ;4estion.

"rti+es 19A 'n( 19A1 o t2e %ivi %o(e provi(e t2e e+eptions to t2e ener' r4e 'ore-mentione(.

"RT. 19A. T2e 'en+ s2' rem'in in 4 or+e 'n( e7e+t even 'ter t2e (e't2 o t2e prin+ip', iit 2's been +onstit4te( in t2e +ommon interest o t2e 'tter 'n( o t2e 'ent, or in t2e interest o' t2ir( person *2o 2's '++epte( t2e stip4'tion in 2is 'vor.

"RT. 19A1. "nt2in (one b t2e 'ent, *it2o4t 3no*e(e o t2e (e't2 o t2e prin+ip' or o 'not2er +'4se *2i+2 etin4is2es t2e 'en+, is v'i( 'n( s2' be 4 e7e+tive *it2 respe+t tot2ir( persons *2o m' 2've +ontr'+te( *it2 2im in oo(. 'it2.

"rti+e 19A is not invove( be+'4se '(mitte( t2e spe+i' po*er o 'ttorne ee+4te( in 'vor

o Simeon R'os *'s not +o4pe( *it2 'n interest.

"rti+e 19A1 is t2e 'ppi+'be '*. #n(er t2is provision, 'n '+t (one b t2e 'ent 'ter t2e (e't2

o 2is prin+ip' is v'i( 'n( e7e+tive on 4n(er t*o +on(itions, vi ?1Ct2't t2e 'ent '+te(*it2o4t 3no*e(e o t2e (e't2 o t2e prin+ip' 'n( ?


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eno42 t2't t2e t2ir( person '+te( in oo( 'it2. T24s in )4'son Rees v. P'n4's, t2e %o4rt'ppin "rti+e 1BA8 o t2e o( %ivi ro(e no* "rt. 19A1 o t2e ne* %ivi %o(e s4st'ine( t2e

v'i(it , o ' s'e m'(e 'ter t2e (e't2 o t2e prin+ip'be+'4se it *'s not s2o*n t2't t2e 'ent3ne* o 2is prin+ip'/s (emise.15To t2e s'me e7e+t is t2e +'se oHerrer', et '., v. L4 imG4'n, et '., 1961, *2ere in t2e *or(s o 04sti+e 0es4s )'rrer' t2e %o4rt st'te(

... even r'ntin 'r4emen(o t2't L4is Herrer' (i( (ie in 19A6, p'inti7s presente( no proo 'n(t2ere is no in(i+'tion in t2e re+or(, t2't t2e 'ent L4 im G4'n *'s '*'re o t2e (e't2 o 2is

prin+ip' 't t2e time 2e so( t2e propert. T2e (e't2 6 t2e prin+ip' (oes not ren(er t2e '+t o 'n'ent 4nenor+e'be, *2ere t2e 'tter 2'( no 3no*e(e o s4+2 etin4is2ment o t2e 'en+.?1 S%R" @6, @1o. 11, pp. 561 'n( 5B5= pp. 15-16, rooC

T2e 'bove (is+o4rse 2o*ever, tre'ts o revo+'tion b 'n '+t o t2e prin+ip' 's ' mo(e o

termin'tin 'n 'en+ *2i+2 is to be (istin4is2e( rom revo+'tion boper'tion o '*s4+2 's(e't2 o t2e prin+ip' *2i+2 obt'ins in t2is +'se. On p'e si o t2is Opinion We stresse( t2't b


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re'son o t2e ver n't4re o t2e re'tions2ip bet*een prin+ip' 'n( 'ent, 'en+ is

etin4is2e(ipso :4re4pon t2e (e't2 o eit2er prin+ip' or 'ent. "t2o42 ' revo+'tion o 'po*er o 'ttorne to be e7e+tive m4st be +omm4ni+'te( to t2e p'rties +on+erne(,18et 'revo+'tion b oper'tion o '*, s4+2 's b (e't2 o t2e prin+ip' is, 's ' r4e, inst'nt'neo4se7e+tive in'sm4+2 's Fb e' +tion t2e 'ent/s eer+ise o '4t2orit is re'r(e( 's 'n

ee+4tion o t2e prin+ip'/s+ontin4in *i.19Wit2 (e't2, t2e prin+ip'/s *i +e'ses or is t2e o'4t2orit is etin4is2e(.

T2e %ivi %o(e (oes not impose ' (4t on t2e 2eirs to noti t2e 'ent o t2e (e't2 o t2e

prin+ip' W2't t2e %o(e provi(es in "rti+e 19A< is t2't, it2e 'ent (ie 2is 2eirs m4st noti t2eprin+ip' t2ereo, 'n( in t2e me'ntime '(opt s4+2 me's4res 's t2e +ir+4mst'n+es m' (em'n(in t2e interest o t2e 'tter. Hen+e, t2e '+t t2't no noti+e o t2e (e't2 o t2e prin+ip' *'sreistere( on t2e +erti+'te o tite o t2e propert in t2e OD+e o t2e Reister o ee(s, is not't' to t2e +'4se o t2e est'te o t2e prin+ip'

6. Ho(in t2't t2e oo( 'it2 o ' t2ir( person in s'i( *it2 'n 'ent '7or(s t2e ormer s4D+ientprote+tion, respon(ent +o4rt (re* ' Fp'r'eF bet*een t2e inst'nt +'se 'n( t2't o 'n inno+entp4r+2'ser or v'4e o ' 'n(, st'tin t2't i ' person p4r+2'ses ' reistere( 'n( rom one *2o

'+;4ire( it in b'( 'it2 E even to t2e etent o oreoin or 'siin t2e (ee( o s'e in 2is'vor E t2e reistere( o*ner 2's no re+o4rse ''inst s4+2 inno+ent p4r+2'ser or v'4e b4t on

''inst t2e orer.'e:o, 61 P2i. 6'e:o N'no in 2is 'vor. >'e:o (eivere( to N'no 2is 'n( tites. T2e po*er *'s reistere( in t2eOD+e o t2e Reister o ee(s. W2en t2e '*er-24sb'n( o "ne' )on(e'4 *ent to t2't

OD+e, 2e o4n( ' in or(er in+4(in t2e po*er o 'ttorne. )4t >'e:o (enie( 2'vin ee+4te(t2e po*er T2e o*er +o4rt s4st'ine( >'e:o 'n( t2e p'inti7 )on(e'4 'ppe'e(. Reversin t2e

(e+ision o t2e +o4rt ' ;4o, t2e S4preme %o4rt, ;4otin t2e r4in in t2e +'se oi'son v.Wiborn,


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'tter 'ter 2er (e't2 *it2 4 3no*e(e o s4+2 (e't2. T2e sit4'tion is epress +overe( b 'provision o '* on 'en+ t2e terms o *2i+2 're +e'r 'n( 4nmist'3'be e'vin no room or 'ninterpret'tion +ontr'r to its tenor, in t2e s'me m'nner t2't t2e r4in in )on(e'4 'n( t2e +'ses+ite( t2erein o4n( ' b'sis in Se+tion 55 o t2e L'n( Reistr'tion L'* *2i+2 in p'rt provi(es

T2e pro(4+tion o t2e o*ner/s (4pi+'te +erti+'te *2enever 'n vo4nt'r instr4ment is

presente( or reistr'tion s2' be +on+4sive '4t2orit rom t2e reistere( o*ner to t2e reistero (ee(s to enter ' ne* +erti+'te or to m'3e ' memor'n(4m o reistr'tion in '++or('n+e *it2s4+2 instr4ments, 'n( t2e ne* +erti+'te or memor'n(4m S2' be bin(in 4pon t2e reistere(o*ner 'n( 4pon ' persons +'imin 4n(er 2im in 'vor o ever p4r+2'ser or v'4e 'n( in oo(

'it2Provi(e( 2o*ever, T2't in ' +'ses o reistr'tion provi(e( b r'4(, t2e o*ner m'p4rs4e ' 2is e' 'n( e;4it'be reme(ies ''inst t2e p'rties to s4+2 r'4( *it2o4t pre:4(i+e,2o*ever, to t2e ri2t, o 'n inno+ent 2o(er or v'4e o ' +erti+'te o tite. ... ?"+t No. @96 's'men(e(C

B. One 'st point r'ise( b respon(ent +orpor'tion in s4pport o t2e 'ppe'e( (e+ision is 'n 18@. T'n, Sto+3 H' T. T'n 'n(eor'+i's G. 4emio *ere impe'(e( 's '((ition' (een('nts on '++o4nt o t2eir p4r+2'se oS"% s2'res o sto+3s 'n( *ere t2e +ontroin sto+32o(ers o %.

In t2eir 'ns*er to t2e +omp'int, % 'n( S"% 'ee( t2't sin+e tero4tremer *'s not (oinb4siness in t2e P2iippines, it +'nnot be s4b:e+t to t2e :4ris(i+tion o P2iippine +o4rts= t2e )o'r(

'n( sto+32o(ers o % never 'pprove( 'n reso4tion to se s4b:e+t properties nor '4t2orie(!'r;4e to se t2e s'me= 'n( t2e tee ('te( O+tober


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+orpor'tion +on+erne(, t2't is, t2ro42 reso4tions o t2e )o'r( o ire+tors 'n( sto+32o(ers.T2e tri' +o4rt 'so pointe( o4t t2't t2e s4ppose( s'e invoves s4bst'nti' ' t2e 'ssets o

(een('nt % *2i+2 *o4( res4t in t2e event4' tot' +ess'tion o its oper'tion.1@

T2e Liton:4's 'ppe'e( t2e (e+ision to t2e %", 'ein t2't F?1C t2e o*er +o4rt erre( in+on+4(in t2't t2e re' est'te bro3er in t2e inst'nt +'se nee(e( ' *ritten '4t2orit rom'ppeee +orpor'tion 'n(or t2't s'i( bro3er 2'( no s4+2 *ritten '4t2orit= 'n( ? RROR O$ L"W IN HOLING TH"T !"R# N" WRITTN "#THORIT& $RO! RSPONNT TRNIT )$OR TH S"L %"N ) PR$%T.

III

TH %O#RT O$ "PP"LS RR IN NOT HOLING TH"T GL"N>ILL "N LS"#K H"> THN%SS"R& "#THORIT& TO SLL TH S#)0%T PROPRTIS, OR "T TH >R& L"ST, WRNOWINGL& PR!ITT )& RSPONNT TRNIT TO O "%TS WITHIN TH S%OP O$ "N"PP"RNT "#THORIT&, "N TH#S HL TH! O#T TO TH P#)LI% "S POSSSSING POWR TO

SLL TH S"I PROPRTIS.1B
http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt14http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt15http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt16http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt17http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt14http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt15http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt16http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt17


21/48

Petitioners m'int'in t2't, b'se( on t2e '+ts o t2e +'se, t2ere *'s ' pere+te( +ontr'+t o s'e

o t2e p'r+es o 'n( 'n( t2e improvements t2ereon or F#SU1,,. p4sPR"L!ONTHS, rom 1986 to 198B=

A. T2e%O#NTR-O$$Rm'(e b ternit t2ro42 GL"N>ILL to se its properties to t2ePetitioners=

@. T2eGOO $"ITHo Petitioners in beievin ternits o7er to se t2e properties 's evi(en+e(b t2e Petitioners "%%PT"N% o t2e +o4nter-o7er=

5. T2e '+t t2't PetitionersPOSITt2e pri+e o #SJU1,,. *it2 t2e Se+4rit )'n3'n( t2't 'n S%ROW 'reement *'s (r'te( over t2e s4b:e+t properties=

6. G'nvies tee to es'4 in;4irin FWHNW?Respon(entsC WILL I!PL!NT "%TION TO)#& "N SLLF=

B. !ore import'nt, 2ibits FGF 'n( FHF o t2e Respon(ents, *2i+2 evi(en+e( t2e '+t t2't

Petitioners o7er *'s 'ee(R0%Tb bot2 G'nvie 'n( es'4.18

Petitioners insist t2't it is in+onr4o4s or G'nvie 'n( es'4 to m'3e ' +o4nter-o7er topetitioners o7er 'n( t2ere'ter re:e+t s4+2 o7er 4ness t2e *ere '4t2orie( to (o so brespon(ent %. Petitioners insist t2't es'4 +onrme( 2is '4t2orit to se t2e properties in 2isetter to !'r;4e, to *it

e'r Sir,
http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt18http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt18


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Re L'n( o ternit %orpor'tion

I *o4( i3e to +onrm oD+i' t2't o4r Gro4p 2's (e+i(e( not to pro+ee( *it2 t2e s'e o t2e'n( *2i+2 *'s propose( to o4.

T2e %ommittee or "si' o o4r Gro4p met re+ent ?meetin ever si mont2sC 'n( e'mine( t2eposition 's 'r 's t2e P2iippines 're ?si+C +on+erne(. %onsi(erin t2e ne* poiti+' sit4'tion sin+et2e (ep'rt4re o !R. !"R%OS 'n( ' +ert'in st'bii'tion in t2e P2iippines, t2e %ommittee 2's

(e+i(e( not to stop o4r oper'tions in !'ni'.J IJn '+t pro(4+tion st'rte( ''in 'st *ee3, 'n(?si+C to reor'nie t2e p'rti+ip'tion in t2e %orpor'tion.

We reret t2't *e +o4( not m'3e ' (e' *it2 o4 t2is time, b4t in +'se t2e poi+ *o4( +2'ne't ' 'ter st'e *e *o4( +ons4t o4 ''in.

In t2e me'ntime, I rem'in

&o4rs sin+ere,

%.$. LS"#K19

Petitioners 4rt2er emp2'sie t2't t2e '+te( in oo( 'it2 *2en G'nvie 'n( es'4 *ere3no*in permitte( b respon(ent % to se t2e properties *it2in t2e s+ope o 'n 'pp'rent'4t2orit. Petitioners insist t2't respon(ents 2e( t2emseves to t2e p4bi+ 's possessin po*erto se t2e s4b:e+t properties.

) *' o +omment, respon(ents 'ver t2't t2e iss4es r'ise( b t2e petitioners 're '+t4',2en+e, 're pros+ribe( b R4e @5 o t2e R4es o %o4rt. On t2e merits o t2e petition, respon(ents% ?no* !%C 'n( S"% reiter'te t2eir s4bmissions in t2e %". T2e m'int'in t2't G'nvie,es'4 'n( !'r;4e 2'( no '4t2orit rom t2e sto+32o(ers o respon(ent % 'n( its )o'r( oire+tors to o7er t2e properties or s'e to t2e petitioners, or to 'n ot2er person or entit ort2't m'tter. T2e 'ssert t2't t2e (e+ision 'n( reso4tion o t2e %" 're in '++or( *it2 '* 'n( t2e

evi(en+e on re+or(, 'n( s2o4( be 'Drme( in toto.

Petitioners 'ver in t2eir s4bse;4ent pe'(ins t2't respon(ent %, t2ro42 G'nvie 'n(es'4, +onorme( to t2e *ritten '4t2orit o !'r;4e to se t2e properties. T2e '4t2orit oG'nvie 'n( es'4 to bin( respon(ent % is evi(en+e( b t2e '+t t2't G'nvie 'n( es'4neoti'te( or t2e s'e o 9 o sto+3s o respon(ent % to R4perto T'n on 04ne 1, 199B. Givent2e sini+'n+e o t2eir positions 'n( t2eir (4ties in respon(ent % 't t2e time o t2etr'ns'+tion, 'n( t2e '+t t2't respon(ent S"% o*ns 9 o t2e s2'res o sto+3 o respon(ent%, ' orm' reso4tion o t2e )o'r( o ire+tors *o4( be ' mere +eremoni' orm'it. W2't isimport'nt, petitioners m'int'in, is t2't !'r;4e *'s 'be to +omm4ni+'te t2e o7er orespon(ent % 'n( t2e petitioners '++ept'n+e t2ereo. T2ere *'s no time t2't t2e '+te(*it2o4t t2e 3no*e(e o respon(ents. In '+t, respon(ent % never rep4(i'te( t2e '+ts oG'nvie, !'r;4e 'n( es'4.

T2e petition 2's no merit.

"nent t2e rst iss4e, *e 'ree *it2 t2e +ontention o respon(ents t2't t2e iss4es r'ise( bpetitioner in t2is +'se 're '+t4'. W2et2er or not !'r;4e, G'nvie, 'n( es'4 *ere'4t2orie( b respon(ent % to '+t 's its 'ents re'tive to t2e s'e o t2e properties orespon(ent %, 'n( i so, t2e bo4n('ries o t2eir '4t2orit 's 'ents, is ' ;4estion o '+t. In t2e'bsen+e o epress *ritten terms +re'tin t2e re'tions2ip o 'n 'en+, t2e eisten+e o 'n
http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt19http://www.lawphil.net/judjuris/juri2006/jun2006/gr_144805_2006.html#fnt19


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'en+ is ' '+t ;4estion.


24/48

norm' +o4rse o b4siness. T2e ener' prin+ipes o 'en+ overn t2e re'tion bet*een t2e+orpor'tion 'n( its oD+ers or 'ents, s4b:e+t to t2e 'rti+es o in+orpor'tion, b-'*s, or reev'nt

provisions o '*.


25/48

In t2is +'se, t2e petitioners 's p'inti7s beo*, 'ie( to '((4+e in evi(en+e 'n reso4tion o t2e)o'r( o ire+tors o respon(ent % empo*erin !'r;4e, G'nvie or es'4 's its 'ents, tose, et 'one o7er or s'e, or 'n( in its be2', t2e ei2t p'r+es o 'n( o*ne( b respon(ent% in+4(in t2e improvements t2ereon. T2e b're '+t t2't es'4 m' 2've been '4t2orie( tose to R4perto T'n t2e s2'res o sto+3 o respon(ent S"%, on 04ne 1, 199B, +'nnot be 4se( 'sb'sis or petitioners +'im t2't 2e 2'( i3e*ise been '4t2orie( b respon(ent % to se t2ep'r+es o 'n(.

!oreover, t2e evi(en+e o petitioners s2o*s t2't "('ms 'n( G'nvie '+te( on t2e '4t2orit oes'4, *2o, in t4rn, '+te( on t2e '4t2orit o respon(ent S"%, t2ro42 its %ommittee or

"si',A8t2e )o'r( o ire+tors o respon(ent S"%,A9'n( t2e )ei'nS*iss +omponent o t2em'n'ement o respon(ent S"%.@"s s4+2, "('ms 'n( G'nvie en'e( t2e servi+es o!'r;4e to o7er to se t2e properties to prospe+tive b4ers. T24s, on September 1


26/48

persons (e'in *it2 'n 'ss4me( 'ent 're bo4n( 't t2eir peri, 'n( i t2e *o4( 2o( t2eprin+ip' i'be, to 's+ert'in not on t2e '+t o 'en+ b4t 'so t2e n't4re 'n( etent o

'4t2orit, 'n( in +'se eit2er is +ontroverte(, t2e b4r(en o proo is 4pon t2em to prove it.@6Int2is +'se, t2e petitioners 'ie( to (is+2're t2eir b4r(en= 2en+e, petitioners 're not entite( to('m'es rom respon(ent %.

It 'ppe'rs t2't !'r;4e '+te( not on 's re' est'te bro3er or t2e petitioners b4t 'so 's t2eir'ent. "s e'ne( rom t2e etter o !'r;4e to G'nvie, on $ebr4'r No. 66985, *2i+2reverse( t2e e+ision ('te( 04


27/48

T2e 'nte+e(ents o t2e +'se oo*

On "pri 1, 199B, !'. "4r' Tin' "nees ?respon(entC e( *it2 t2e RT% ' +omp'int or Spe+i+Perorm'n+e *it2 'm'es ''inst 0o+en ). oes ?petitionerC, (o+3ete( 's %ivi %'se No. 9B-8


28/48

On 04 IN%. 6

On "pri A,


29/48

$4rt2ermore, t2e %" 2e( t2't t2e 'ee( t2re't or intimi('tion b respon(ent (i( not viti'te+onsent, sin+e t2e s'me is +onsi(ere( :4st or e' i m'(e to enor+e ones +'im t2ro42

+ompetent '4t2orit 4n(er "rti+e 1AA511o t2e %ivi %o(e=1


30/48

respon(ent in t2eir o*n n'mes, *2i+2 *'s pre(i+'te( on t2't pre-eistin (ebt, is voi( or '+3 o+onsi(er'tion.

In(ee(, t2e ee( o "bso4te S'e p4rports to be s4pporte( b ' +onsi(er'tion in t2e orm o '

pri+e +ert'in in mone16'n( t2't t2is s4m in(isp4t'b pert'ins to t2e (ebt in iss4e. T2is %o4rt2's +onsistent 2e( t2't ' +ontr'+t o s'e is n4 'n( voi( 'n( pro(4+es no e7e+t *2'tsoever

*2ere t2e s'me is *it2o4t +'4se or +onsi(er'tion.1BT2e ;4estion t2't 2's to be resove( or t2emoment is *2et2er t2is (ebt +'n be +onsi(ere( 's ' v'i( +'4se or +onsi(er'tion or t2e s'e.

To rest'te, t2e %" +ite( o4r inst'n+es in t2e re+or( to s4pport its 2o(in t2't petitioner Fre-en(sF t2e 'mo4nt borro*e( rom respon(ent to 2er rien(s rst, t2e rien(s o petitioner neverpresente( t2emseves to respon(ent 'n( t2't ' tr'ns'+tions *ere m'(e b 'n( bet*een

petitioner 'n( respon(ent=18se+on(= t2e mone p'sse( t2ro42 t2e b'n3 '++o4nts o petitioner'n( respon(ent=19t2ir(, petitioner 2erse '(mitte( t2't s2e *'s Fre-en(inF t2e mone o'ne(to ot2er in(ivi(4's or prot=


31/48

"tt. i'

;. i( t2e p'inti7 person' see t2e tr'ns'+tions *it2 o4r rien(s

*itness

'. No, sir.

"tt. i'

;. &o4r rien(s 'n( t2e p'inti7 (i( not meet person'

*itness

'. &es, sir.

"tt. i'

;. &o4 're interme(i'ries

*itness

'. We 're bot2 interme(i'ries. "s evi(en+e( b t2e +2e+3s o t2e (ebtors t2e *ere (eposite( tot2e n'me o "rsenio P4' be+'4se t2e mone +'me rom "rsenio P4'.

"tt. i'

;. i( t2e p'inti7 3ne* si+J t2't o4 *i en( t2e mone to o4r rien(s spe+i+' t2e one o4mentione( 'J *2ie 'o

*itness

'. &es, s2e 3no*s t2e mone *i o to t2ose persons.

"tt. i'

;. &o4 're re-en(in t2e mone

*itness

'. &es, sir.

"tt. i'

;. W2't prot (o o4 2've, (o o4 2've +ommission

*itness

'. &es, sir.

"tt. i'

;. Ho* m4+2

*itness


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'. T*o per+ent to Tome(en, one per+ent to 0'+ob 'n( t2en Ino+en+io 'n( m rien(s none, sir.

)'se( on t2e oreoin, t2e %" +on+4(e( t2't petitioner is t2e re' borro*er, *2ie t2erespon(ent, t2e re' en(er.

)4t 's +orre+t note( b t2e RT%, respon(ent, t2en p'inti7, m'(e t2e oo*in '(mission

(4rin 2er +ross e'min'tion


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'. &es, sir, I 'm '*'re o t2't.

"tt. >i'+ort'

;. "n( t2ese rien(s o t2e (een('nt borro*e( mone rom o4 *it2 t2e 'ss4r'n+e o t2e(een('nt

*itness

'. T2e o (ire+t to 0o+en be+'4se I (ont 3no* t2em.

"tt. >i'+ort'

;. "n( is it not 'so ' '+t !'('m *itness t2't evertime t2't t2e (een('nt borro*e( monerom o4 2er rien(s *2o 'reJ in nee( o mone iss4e( +2e+3sJ to o4 T2ere *ere +2e+3siss4e( to o4

*itness

'. &es, t2ere *ere +2e+3s iss4e(.

"tt. >i'+ort'

;. ) t2e rien(s o t2e (een('nt, 'm I +orre+t

*itness

'. &es, sir.

"tt. >i'+ort'

;. "n( be+'4se o o4r 'ssist'n+e, t2e rien(s o t2e (een('nt *2o 're in nee( o mone *ere'be to obt'in o'n to si+J "rsenio P4' t2ro42 o4r 'ssist'n+e

*itness

'. &es, sir.

"tt. >i'+ort'

;. So t2't o++'sion 'ste( or more t2'n ' e'r

*itness

'. &es, sir.

"tt. >i'+ort'

;. "n( some o t2e +2e+3s t2't *ere iss4e( b t2e rien(s o t2e (een('nt bo4n+e(, 'm I+orre+t

*itness


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'. &es, sir.

"tt. >i'+ort'

;. "n( be+'4se o t2't "rsenio P4' ot m'( *it2 o4

*itness

'. &es, sir.

Respon(ent is estoppe( to (en t2't s2e 2erse '+te( 's 'ent o ' +ert'in "rsenio P4', 2er(is+ose( prin+ip'. S2e is 'so estoppe( to (en t2't petitioner '+te( 's 'ent or t2e 'ee((ebtors, t2e rien(s *2om s2e ?petitionerC reerre(.

T2is %o4rt 2's 'Drme( t2't, 4n(er "rti+e 1868 o t2e %ivi %o(e, t2e b'sis o 'en+ is

represent'tion.


35/48

one represents 'n( is '+tin or 'not2er, 'n( i re'tions eist *2i+2 *i +onstit4te 'n 'en+,it*i be 'n 'en+ *2et2er t2e p'rties 4n(erstoo( t2e e'+t n't4re o t2e re'tion or not.A1

T2't bot2 p'rties '+te( 's mere 'ents is s2o*n b t2e 4n(isp4te( '+t t2't t2e rien(s opetitioner iss4e( +2e+3s in p'ment o t2e o'n in t2e n'me o P4'. I it is tr4e t2't petitioner*'s Fre-en(inF, t2en t2e +2e+3s s2o4( 2've been (r'*n in 2er n'me 'n( not (ire+t p'i( toP4'.

Wit2 respe+t to t2e se+on( point, p'rti+4'r, t2e n(in o t2e %" t2't t2e (isb4rsements 'n(p'ments or t2e o'n *ere m'(e t2ro42 t2e b'n3 '++o4nts o petitioner 'n( respon(ent,

s4D+e it to s' t2't in t2e norm' +o4rse o +ommer+i' (e'ins 'n( or re'sons o +onvenien+e'n( pr'+ti+' 4tiit it +'n be re'son'b epe+te( t2't t2e '+iities o t2e 'ent, s4+2 's ' b'n3'++o4nt, m' be empoe(, 'n( t2't ' s4b-'ent be 'ppointe(, s4+2 's t2e b'n3 itse, to +'rr

o4t t2e t's3, espe+i' *2ere t2ere is no stip4'tion to t2e +ontr'r.A

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