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9. [G.R. No. 120334. January 20, 1998] NORTHWEST AIRLINES,IN . petitioner, vs. O!RT O" A##EALS an$ ROLAN%O I.

TORRES respondents .

[G.R. No. 120337. January 20, 1998]

ROLANDO I. TORRES, petitioner, vs. CO RT O! A""EALS an#NORT$%EST AIRLINES, INC., respondents .

D E C I S I O NDA&IDE, JR., J .'

na()* +o a *-+ + * #* / /on o + * Cour+ o A--*a) /n CA G.R. C& No.2 048, [1] -*+/+/on*r Nor+ 5* + A/r)/n* , In ., 6 *r*a +*r NORT$%EST an#-*+/+/on*r Ro)an#o I. Torr* 6 *r*a +*r TORRES /)*# *-ara+* -*+/+/on orr* /*5 un#*r Ru)* o + * Ru)* o Cour+, 5 / 5*r* #o :*+*# a G.R. No.12033 an# G.R. No. 120337 an# + *r*a +*r on o)/#a+*#.

T * an+* *#*n+ o + * * a * 5*r* u;;ar/

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r*-r* *n+a+/ * + a+ / (a==a=* on+a/n/n= /r*ar; 5a r* a))*# (a :+o C / a=o (y #* *n#an+ or S Cu +o; *r/ / a+/on. A +*)*B +o + /* * + 5a o5n +o -)a/n+/ .

On Jun* 28, 1988, a +*r (*/n= a# / *# o + * arr/ a) o / o+ *r(a==a=*, -)a/n+/ )a/;*# an# o-*n*# + * (a==a=* /n + * -r* *n * o#* *n#an+? r*-r* *n+a+/ * an# oun# ou+ + a+ + * /r*ar; 5*r*;/ /n=. A "*r ona) "ro-*r+y >/ /n= Da;a=* R*-or+ 5a / u*# (y#* *n#an+ +o -)a/n+/ .

On a oun+ o + * on+/nuou r* u a) o #* *n#an+ +o *++)* a;/ a()y,-)a/n+/ + *n -ray*# (* or* + * +r/a) our+ + a+ #* *n#an+ (* or#*r*# +o-ay a +ua) #a;a=* , ;ora) #a;a=* , +*;-*ra+* #a;a=* , *B*;-)ary#a;a=* an# a++orn*y ** 6--. 1 4, Co;-)a/n+ -. 1, R* or# .

In /+ an 5*r, #* *n#an+ -)*a#*#' a + a+ /+ 5a + * a=*n+ ro; + * SCu +o; 5 o or#*r*# or + * r*+urn o + * 5*a-on 5 / -)a/n+/* :*# /n ( + a+ 5 *n o-*n*# /n + * -r* *n * o S Cu +o; a=*n+

+ * (oB on+a/n*# no /r*ar; an# + a+ /n * + * (a==a=* 5 / 5ar*+urn*# (a : +o C / a=o #/# no+ on+a/n any /r*ar; , + *n + *(a==a=* 5 / -)a/n+/ r* */ *# u-on arr/ a) /n >an/)a ;u + a *on+a/n*# + * /r*ar; 6--. 3 , An 5*r --. 32 3 , R* or# .

A +*r -)a/n+/ a# -r* *n+*# /+ * /#*n *, #* *n#an+ /)*# a >o+/on +oD/ ;/ 6 y %ay o D*;urr*r +o + * E /#*n * 5/+ >o+/on or Su;;aryJu#=;*n+ #a+*# A-r/) 2 , 1989.

In a/# ;o+/on, #* *n#an+ ;o *# or + * F#/ ;/ a) o + * o;-)a/n+ /no ar a /+ -ray or ;ora), *B*;-)ary an# +*;-*ra+* #a;a=* an#a++orn*y ** an# ur+ *r ;o *# or Su;;ary Ju#=;*n+ +o (*r*n#*r*# a5ar#/n= + * -)a/n+/ H4 0.00 a a +ua) #a;a=* . 6>o+/on +oD/ ;/ y %ay o D*;urr*r +o E /#*n * 5/+ >o+/on or Su;;aryJu#=;*n+ -. 11 , R* or# .

")a/n+/ on + * o+ *r an#, o *r*# no o( * +/on +o + * u(;/ /on o + *a * or #* / /on (u+ /n / +*# + a+ * / *n+/+)*# +o #a;a=* a -ray*#or 6-. 1, Co;;*n+ on D* *n#an+ >o+/on +o D/ ;/ (y %ay oD*;urr*r +o E /#*n * 5/+ Su;;ary Ju#=;*n+ --. 134 149, R* or# .

%* a## +o + / u;;ary + * o))o5/n= r*)* an+ ;a++*r '

NORT$%EST ar=u*# /n /+ ;o+/on or u;;ary u#=;*n+ + a+ + * %ar a5Con *n+/on an# + * on+ra + o arr/a=* )/;/+*# /+ )/a(/)/+y +o SH4 0 an# + a+ + *

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* /#*n * -r* *n+*# (y TORRES #/# no+ *n+/+)* /; +o ;ora), *B*;-)ary, an#+*;-*ra+* #a;a=* an# a++orn*y? ** . [3]

In +*a# o u + ru)/n= on NORT$%EST? >o+/on +o D/ ;/ 6 y %ay oD*;urr*r +o E /#*n * 5/+ >o+/on or Su;;ary Ju#=;*n+, 5 / /+ on /#*r*#u(;/++*# or r* o)u+/on /n + * or#*r o 1 Jun* 1989, [ ] + * +r/a) our+ r*n#*r*# on13 S*-+*;(*r 1989 a u)) ()o5n #* / /on [ ]or#*r/n= NORT$%EST +o -ayTORRES + * o))o5/n= a;oun+ '

1. T * a;oun+ o H9,009.32, 5/+ )*=a) /n+*r* + + *r*on ro; + *#a+* o + * /)/n= o + * o;-)a/n+, /n /+ -* o *@u/ a)*n+ a+ + *o / /a) ra+* o *B an=* a+ + * +/;* -ay;*n+ / ;a#*,r*-r* *n+/n= + * a)u* o + * =oo# )o + (y + * -)a/n+/

2. T * a;oun+ o "100,000.00 (y 5ay o a++orn*y **

3. T * a;oun+ o " ,181.09 a /)/n= ** -a/# (y + * -)a/n+/ an#+ * a;oun+ o "20,000.00 or *B-*n * o )/+/=a+/on, r*-r* *n+/n=+ra *) *B-*n * an# o+*) a o;;o#a+/on o -)a/n+/ oun *)an#

. T * a;oun+ o " 0,000.00 a ;ora) #a;a=* .

T * a5ar# o SH9,009.32, r*-r* *n+/n= + * a)u* o + * )o + /r*ar; , 5a=roun#*# on + * +r/a) our+? /n#/n= + a+ F+ * a + o [NORT$%EST? ] -*r onn*)/n To:yo or Nar/+a A/r-or+ /n u + =u* /n= 5 / (a==a=* on+a/n*# + * /r*ar;5a ar*)* an# /;-ru#*n+, a;oun+/n= +o ar*)* #/ r*=ar# or + * a *+y o+ * )u==a=* o + * -a *n=*r. A or#/n= +o + * +r/a) our+, u a + on +/+u+*#5/)) u) ;/ on#u + 5 / (rou= + + * a * (*yon# + * a--)/ a+/on o S* +/on 2262o + * %ar a5 Con *n+/on, + *r*(y #*-r/ /n= NORT$%EST o + * )/;/+a+/on o+ * )/a(/)/+y -ro /#*# or /n a/# * +/on.

T * a5ar# o a++orn*y? ** an# *B-*n * o )/+/=a+/on 5*r* -r*;/ *# onNORT$%EST? a /n= /=nor*# + * #*;an# o TORRES or /n= + * )a++*r +o)/+/=a+* /n or#*r +o a *r+ / r/= +. TORRES 5a a) o a5ar#*# ;ora) #a;a=*(* au * o + * F/n on *n/*n *, anB/*+y an# 5orry * u *r*# (y r*a on oNORT$%EST? un u +/ /a()* r* u a) +o *++)* / )a/;.

o+ TORRES an# NORT$%EST a--*a)*# ro; + * #* / /on +o + * Cour+ o A--*a) , 5 / #o :*+*# + * a * a CA G.R. C& No. 2 048. Torr* a a/)*#+ * a/)ur* o + * +r/a) our+ +o a5ar# + * a +ua), ;ora), an# *B*;-)ary#a;a=* prayed for by him. [4] Nor+ 5* +, on + * o+ *r an#, a))*=*# + a+ /n-r*;a+ur*)y r* o) /n= + * a * on + * ;*r/+ + * our+ -r* *n+*# /+ ro;-r* *n+/n= * /#*n *, + *r*(y #*ny/n= /+ #u* -ro * an# + a+ * *n a u;/n=+ a+ + * +r/a) our+ ou)# r* o) * + * *n+/r* a * on + * ;*r/+ , /+ *rr*# /n a5ar#/n=#a;a=* , a++orn*y? ** , an# *B-*n * o )/+/=a+/on. [7]

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In /+ D* / /on [8] o 1 S*-+*;(*r 199 , + * Cour+ o A--*a) u +a/n*# + *+r/a) our+? u#=;*n+ + a+ TORRES 5a *n+/+)*# +o a +ua) #a;a=* , /n *NORT$%EST a#, /n * * +, a#;/++*# + * )o o + * /r*ar; 5 *n /+ /n / +*#+ a+ /+ )/a(/)/+y 5a )/;/+*# +o H9.07 -*r -oun# or H20 -*r :/)o. T * a--*))a+*our+ + *n on )u#*# + a+ NORT$%EST? guessing o 5 / )u==a=* on+a/n*#

+ * /r*ar; a;oun+*# +o 5/)) u) ;/ on#u + un#*r S* +/on 2 61 o + * %ar a5Con *n+/on 5 / *n+/+)*# TORRES +o )a/; a +ua) #a;a=* /n *B * o + *)/;/+a+/on -ro /#*# or un#*r S* +/on 2262 o a/# Con *n+/on.

N* *r+ *)* , + * Cour+ o A--*a) *)# + a+ 5 /)* + * +r/a) our+ -ro-*r)yru)*# on + * r/= + o TORRES +o a +ua) #a;a=* , /+ *rr*# /n #*+*r;/n/n= (y 5ayo u;;ary u#=;*n+ + * a;oun+ o #a;a=* or un#*r S* +/on 3 o Ru)* 3 o+ * Ru)* o Cour+, a u;;ary u#=;*n+ ;ay (* r*n#*r*# u-on -ro-*r ;o+/on*B *-+ a +o + * a;oun+ o #a;a=* .

A +o + * +r/a) our+? a + o #/ -o /n= o + * *n+/r* a * (y 5ay o u;;ary u#=;*n+, + * Cour+ o A--*a) no+*# + a+ NORT$%EST a+*=or/ a))y ;o *# or

u;;ary u#=;*n+ on)y on + * / u* o a +ua) #a;a=* , (u+ no+ on + * )a/; or;ora) #a;a=* an# a++orn*y? ** . NORT$%EST ;o *# or + * #/ ;/ a) o+ * )a++*r )a/; (y 5ay o #*;urr*r +o * /#*n *. T a+ (*/n= o, + * +r/a) our+ou)# no+, (y 5ay o u;;ary u#=;*n+, #/ -o * o + * a * on /+

*n+/r*+y. S* +/on 2 o Ru)* 3 o + * Ru)* o Cour+ r*@u/r*# + a+ u;;ary u#=;*n+ ou)# (* / u*# on)y a +*r + * ;o+/on + *r* or a (**n *ar#. S/n *+ *r* 5a no u ;o+/on a +o + * )a/; or ;ora) #a;a=* an# a++orn*y?** , no u;;ary u#=;*n+ + *r*on ou)# (* ;a#*.

An*n+ + * #*;urr*r +o * /#*n *, + * Cour+ o A--*a) *)# + a+ + * +r/a) our+a# +o */+ *r =ran+ or #*ny /+. I =ran+*#, no a5ar# + *r* or ou)# a * (**na)/#)y ;a#*. I #*n/*#, + *n un#*r S* +/on 1 o Ru)* 3 o + * Ru)* o Cour+,NORT$%EST ou)# a * (**n a))o5*# +o -r* *n+ /+ * /#*n *, a /+ 5a no+#**;*# +o a * 5a/ *# + a+ r/= +. T / * +/on -ro /#*#'

SECTION 1. Effect of judgment on demurrer to evidence. A +*r + *-)a/n+/ a o;-)*+*# + * -r* *n+a+/on o / * /#*n *, + * #* *n#an+ 5/+ ou+5a/ /n= / r/= + +o o *r * /#*n * /n + * * *n+ + * ;o+/on / no+ =ran+*#, ;ay;o * or a #/ ;/ a) on + * =roun# + a+ u-on a + an# + * )a5 + * -)a/n+/ ao5n no r/= + +o r*)/* . $o5* *r, / + * ;o+/on / =ran+*# an# or#*r o #/ ;/ a)

/ r* *r *# on a--*a), + * ;o an+ )o * / r/= + +o -r* *n+ * /#*n * /n /(* a) . [9]

T * Cour+ o A--*a) + *n *)# + a+ /n * + * #*;urr*r 5a /;-)/*#)y#*n/*# (y + * +r/a) our+, NORT$%EST ou)# a * (**n a))o5*# +o -r* *n+ /+* /#*n * /n a or#an * 5/+ + * a(o * ru)*.

A or#/n=)y, + * Cour+ o A--*a) a /r;*# + * +r/a) our+? /n#/n= a +o + *r/= + o TORRES +o a +ua) #a;a=* (u+ *+ a /#* + * r* + o + * a--*a)*##* / /on. I+ + *n r*;an#*# + * a * +o + * our+ a quo or ur+ *r -ro **#/n= .

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On 23 >ay 199 , + * Cour+ o A--*a) #*n/*# [10] NORT$%EST? ;o+/on or a-ar+/a) r* on /#*ra+/on o + * #* / /on.

$*n *, + * -r* *n+ -*+/+/on .

NORT$%EST on+* + + * r/= + o TORRES +o a +ua) #a;a=* on + *

o))o5/n= =roun# ' 61 + * )o o /r*ar; 5a #/ -u+*# 62 + * /n#/n= o 5/)) u);/ on#u + 5a ar(/+rary an# 63 TORRES a/)*# +o -ro#u * a n/+*# S+a+*)/ *n * or + * /-;*n+ o + * /r*ar; *n *, + * /;-or+a+/on 5a /))*=a) an# no#a;a=* ou)# ar/ * + *r* ro;.

TORRES, on + * o+ *r an#, )a/; + a+ + * Cour+ o A--*a) *rr*# 61 /n*++/n= a /#* + * a--*a)*# #* / /on o + * our+ a quo a +o + * a5ar# o

#a;a=* , a++orn*y? ** , an# o + o u/+ 62 /n r*;an#/n= + * a * +o + *our+ a quo or ur+ *r -ro **#/n= an# 63 /n a/)/n= +o a5ar# o+ *r #a;a=* or(r*a o on+ra + an# 5/)) u) ;/ on#u + o;;/++*# (y Nor+ 5* + or;/ an#)/n= + * ar=o.

NORT$%EST? >o+/on +o D/ ;/ 6 y %ay o D*;urr*r +o E /#*n * 5/+>o+/on or Su;;ary Ju#=;*n+ /n o) *# +5o #/ +/n + an# *-ara+* -ro * * , viz '61 #*;urr*r +o * /#*n *, 5 / 5a + *n =o *rn*# (y Ru)* 3 , no5 (y Ru)* 33an# 62 ;o+/on or u;;ary u#=;*n+, 5 / 5a + *n =o *rn*# (y Ru)* 3 , no5Ru)* 3 , o + * Ru)* o Cour+. T * u( * + o + * #*;urr*r 5*r* + * )a/; or;ora), *B*;-)ary, an# +*;-*ra+* #a;a=* an# a++orn*y? ** 5 /)* + * +ar=*+o + * ;o+/on or u;;ary u#=;*n+ 5a + * )a/; or a +ua) #a;a=* .

%* a=r** 5/+ + * Cour+ o A--*a) /n /+ o)#/n= + a+ + * +r/a) our+ *rr*# /n#* /#/n= + * *n+/r* a * on /+ ;*r/+ . In#**#, a +o + * #*;urr*r +o * /#*n *,+ * +r/a) our+ ou)# a * (**n o)*)y =u/#*# (y + * -ro *#ur* )a/# #o5n /n + *a(o *;*n+/on*# ru)* on #*;urr*r +o * /#*n *. I+ a# no o/ * o+ *r + an +o=ran+ or +o #*ny + * #*;urr*r. I+ ou)# no+, 5/+ ou+ o;;/++/n= =ra * a(u * o#/ r*+/on a;oun+/n= +o *B * o ur/ #/ +/on, #*ny + * ;o+/on an# + *n or+ 5/+=ran+ TORRES? )a/; on a /n#/n= + a+ TORRES a * +a()/ *# a-r*-on#*ran * o * /#*n * /n u--or+ o u )a/; . In + * /n +an+ a *, + *+r/a) our+ #/# u + + a+ /n o ar a ;ora) #a;a=* , a++orn*y? ** , an# *B-*n *o )/+/=a+/on 5*r* on *rn*#. % a+ /+ ou)# a * #on* 5a +o ;*r*)y #*ny + *#*;urr*r an# *+ a #a+* or + * r* *-+/on o NORT$%EST? * /#*n * /n /* .

A +o + * ;o+/on or u;;ary u#=;*n+, (o+ + * +r/a) our+ an# + * Cour+ o A--*a) 5*r* /n *rror . Su;;ary u#=;*n+ 5*r* or;*r)y =o *rn*# (y Ru)* 3o + * Ru)* o Cour+. T * ru)* / no5 Ru)* 3 o + * 1987 Ru)* o C/ /)

"ro *#ur* 5/+ + * a;*n#;*n+ a))o5/n= + * -ar+/* +o u(;/+ no+ on)y a /#a /+(u+ a) o #*-o /+/on or a#;/ /on /n u--or+ o + */r r* -* +/ * on+*n+/on .[11] >o+/on or u;;ary u#=;*n+ ;ay (* /)*# (y + * )a/;an+ or (y + *#* *n#/n= -ar+y. S* +/on 1, 2, an# 3 o + * o)# Ru)* 3 , + * =o *rn/n= )a5 /n + /a *, -ro /#*# a o))o5 '

SECTION 1. Summary judgment for claimant. A -ar+y **:/n= +or* o *r u-on a )a/;, oun+*r )a/;, or ro )a/; or +o o(+a/n a

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#* )ara+ory r*)/* ;ay, a+ any +/;* a +*r + * -)*a#/n= /n an 5*r + *r*+oa (**n *r *#, ;o * 5/+ u--or+/n= a /#a /+ or a u;;ary

u#=;*n+ /n / a or u-on a)) or any -ar+ + *r*o .

SEC. 2. Summary judgment for defending party . A -ar+y a=a/n +5 o; a )a/;, oun+*r )a/;, or ro )a/; / a *r+*# or a #* )ara+oryr*)/* / ou= + ;ay, a+ any +/;*, ;o * 5/+ u--or+/n= a /#a /+ or au;;ary u#=;*n+ /n / a or a +o a)) or any -ar+ + *r*o .

SEC. 3. Motion and proceedings thereon . T * ;o+/on a)) (**r *# a+ )*a + +*n 610 #ay (* or* + * +/;* -* / /*# or + **ar/n=. T * a# *r * -ar+y -r/or +o + * #ay o *ar/n= ;ay *r *o--o /n= a /#a /+ . A +*r + * *ar/n=, + * u#=;*n+ ou= + a)) (*r*n#*r*# or+ 5/+ / + * -)*a#/n= , #*-o /+/on , an# a#;/ /on on /)*+o=*+ *r 5/+ + * a /#a /+ , o5 + a+, *B *-+ a +o + * a;oun+ o#a;a=* , + *r* / no =*nu/n* / u* a +o any ;a+*r/a) a + an# + a+ + *;o /n= -ar+y / *n+/+)*# +o a u#=;*n+ a a ;a++*r o )a5.

NORT$%EST, + * defending party, ;o *# or u;;ary u#=;*n+ on + *)a/; or a +ua) #a;a=* a +*r TORRES a# -r* *n+*# / * /#*n * /n/* . T / 5a a))o5*# (y S* +/on 2 5 *r* + * ;o+/on ;ay (* /)*# Fa+ any

+/;*, a #/ +/n=u/ *# ro; * +/on 1 5 *r* + * claimant , )/:* TORRES, ;ay /)*+ * ;o+/on a+ any +/;* a +*r + * an 5*r / /)*#.

Su;;ary u#=;*n+ / a))o5*# / , *B *-+ a +o + * a;oun+ o #a;a=* , + *r*/ no =*nu/n* / u* a +o any ;a+*r/a) a + an# + * ;o /n= -ar+y / *n+/+)*# +o a

u#=;*n+ a a ;a++*r o )a5.In + / a *, NORT$%EST #*n/*# /n /+ An 5*r + * ;a+*r/a) a))*=a+/on /n

+ * o;-)a/n+ an# a *r+*#, /n a +, + a+ /+ 5a no+ )/a()* or a +ua) #a;a=*(* au * + * (oB on+a/n/n= + * a))*=*# )o + /r*ar; 5a + * on* r* */ *# (yTORRES 5 *n * arr/ *# /n >an/)a. I+ )/:*5/ * on+*n#*# + a+, * *n =ran+/n=+ a+ + * /r*ar; 5*r* )o +, /+ )/a(/)/+y 5a )/;/+*# (y + * %ar a5 Con *n+/on an#+ * on+ra + o +ran -or+a+/on +o H9.07 -*r -oun#, or a +o+a) o H4 0 a + * (oB5*/= *# 70 -oun# . [12] I+ a) o #*n/*# a /n= a +*# rau#u)*n+)y or /n (a# a/+ . [13]

In + u u(;/++/n= or u;;ary u#=;*n+ + * ;a++*r o /+ )/a(/)/+y on)y +o + *;aB/;u; a))o5*# /n S* +/on 2262 o + * %ar a5 Con *n+/on, NORT$%EST

5a #**;*# +o a * y-o+ *+/ a))y a#;/++*# arguendo + a+ + * /r*ar; 5*r*)o +. I+ #/# no+ 5a/ * + * -r* *n+a+/on o * /#*n * + a+ /+ 5a no+ /n a + )/a()* or+ * a))*=*# )o o /r*ar; . An# * *n / /+ 5*r* o )/a()*, NORT$%EST ou)#+/)) -ro * a+ + * a--ro-r/a+* +/;* + a+ /+ 5a no+ )/a()* (*yon# + * ;aB/;u;-ro /#*# /n a/# S* +/on 2262 . No+a()y, TORRES -ray*# or a +ua) #a;a=* /n+ * a;oun+ o 61 H9,009.32 r*-r* *n+/n= + * a)u* o + * )o + /r*ar; an#62 "39,04 [1 ] r*-r* *n+/n= + * o + o / -)an* +/ :*+ .

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[1] "*r La(/+or/a, E., J,, 5/+ Ra;/r*a(unay. OR, 191 20 .[4] Ro))o, CA G.R. C& No. 2 048, 11.[7] d ., un-a=/na+*# D* *n#an+ A--*))an+? r/* , 4 7.[8] Supra no+* 1.[9] T / / no5 S* +/on 1 o Ru)* 33 o + * 1997 Ru)* o C/ /) "ro *#ur* 5/+ ;o#/ / a+/on /n+ * 5or#/n= +o ;a:* + * -ro / /on )*ar*r.[10] %ollo, G.R. No. 12033 , 2.[11] 1 !)or*n< D. R*=a)a#o, R*;*#/a) La5 Co;-*n#/u; 3 9 340 6S/B+ R* / *# E#/+/on 1997 .

[12] "ara=ra- 21 an# 22, An 5*r, OR, 33 3 .[13] "ara=ra- 23, An 5*r, OR, 3 .[1 ] "ara=ra- 13 o + * Co;-)a/n+ an# )*++*r 6( o + * "ray*r + *r*o , OR, an# 4.[1 ] 192 SCRA 9, 17 [1990].

T$IRD DI&ISION

[G.R. No. 138'39. Ju(y ), 2000]

10. RA%IOWEALTH "INAN E O*#AN+, petitioner, vs . S ou- -&I ENTE an$ *A. S!*ILANG %EL ROSARIO, respondents.

% E I S I O N#ANGANI/AN, J.:

% *n a #*;urr*r +o * /#*n * =ran+*# (y a +r/a) our+ / r* *r *# on a--*a),+ * r* /*5/n= our+ anno+ r*;an# + * a * or ur+ *r -ro **#/n= . Ra+ *r, /+ou)# r*n#*r u#=;*n+ on + * (a / o + * * /#*n * -ro *r*# (y + *

-)a/n+/ . Ina ;u a #* *n#an+ /n + * -r* *n+ a * a#;/++*# + * #u* *B* u+/ono + * "ro;/ ory No+* (o+ /n + */r An 5*r an# #ur/n= + * -r*+r/a), + * a--*))a+*our+ ou)# a * r*n#*r*# u#=;*n+ on + * (a * o + a+ No+* an# on + * o+ *r-/* * o * /#*n * a##u *# #ur/n= + * +r/a).

T a-

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* or* u / a "*+/+/on or R* /*5 on C*r+/orar/ o + * D* *;(*r 9, 1997D* / /on [1] an# + * >ay 3, 1999 R* o)u+/on [2] o + * Cour+ o A--*a) /n CA GRC& No. 7737. T * a a/)*# D* / /on #/ -o *# a o))o5 '

F%$ERE!ORE, -r*;/ * on /#*r*#, + * a--*a)*# or#*r 6#a+*#

No *;(*r , 199 o + * R*=/ona) Tr/a) Cour+ 6 ran I& /n + * C/+yo >an/)a /n C/ /) Ca * No. 93 44 07 / *r*(y RE&ERSED an# SET ASIDE. L*+ + * r* or# o + / a * (* r*;an#*# +o + * our+ a @uo or

ur+ *r -ro **#/n= . No -ronoun *;*n+ a +o o + . [3]

T * a a/)*# R* o)u+/on #*n/*# + * -*+/+/on*r? "ar+/a) >o+/on orR* on /#*ra+/on. [ ]

T "a -

T * a + o + / a * ar* un#/ -u+*#. On >ar 2, 1991, S-ou * &/ *n+*an# >ar/a Su;/)an= #*) Ro ar/o 6 *r*/n r* -on#*n+ , o/n+)y an# * *ra))y*B* u+*#, /=n*# an# #*)/ *r*# /n a or o Ra#/o5*a)+ !/nan * Co;-any6 *r*/n -*+/+/on*r , a "ro;/ ory No+* [ ] or " 138,9 8. "*r+/n*n+ -ro / /on o + *"ro;/ ory No+* r*a#'

F!OR &AL E RECEI&ED, on or (* or* + * #a+* )/ +*# (*)o5, IM%*-ro;/ * +o -ay o/n+)y an# * *ra))y Ra#/o5*a)+ !/nan * Co. or or#*r+ * u; o ONE $ NDRED T$IRT EIG$T T$O SAND NINE$ NDRED !ORT EIG$T "* o 6"138,9 8.00 5/+ ou+ n**# o no+/ *or #*;an#, /n /n +a));*n+ a o))o5 '

"11, 79.00 -aya()* or 12 on * u+/ * ;on+ +ar+/n= on 19 un+/) + * a;oun+ o "11, 79.00 / u))y-a/#. Ea /n +a));*n+ a)) (* #u* * *ry #ay o *a;on+ . A )a+* -ay;*n+ -*na)+y ar=* o +5o an# a a) 62.-*r *n+ -*r ;on+ a)) (* a##*# +o *a un-a/# /n +a));*n+ro; #u* #a+* + *r*o un+/) u))y -a/#.

B B B B B B B B B

I+ / *r*(y a=r**# + a+ / #* au)+ (* ;a#* /n + * -ay;*n+ o any o + */n +a));*n+ or )a+* -ay;*n+ ar=* + *r*on a an# 5 *n + * a;*(* o;* #u* an# -aya()* a -* / /*# a(o *, + * +o+a) -r/n /-a) u;+ *n r*;a/n/n= un-a/#, +o=*+ *r 5/+ + * a=r**# )a+* -ay;*n+ ar=*+ *r*on, a)) a+ on * (* o;* #u* an# -aya()* 5/+ ou+ n**# o no+/ *or #*;an#.

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B B B B B B B B B

I any a;oun+ #u* on + / No+* / no+ -a/# a+ /+ ;a+ur/+y an# + / No+* /-)a *# /n + * an# o an a++orn*y or o))* +/on a=*n y or o))* +/on,IM%* o/n+)y an# * *ra))y a=r** +o -ay, /n a##/+/on +o + * a==r*=a+* o

+ * -r/n /-a) a;oun+ an# /n+*r* + #u*, a u; *@u/ a)*n+ +o +*n 610-*r *n+ + *r*o a a++orn*y? an#Mor o))* +/on ** , /n a * no )*=a)a +/on / /)*#, o+ *r5/ *, + * u; 5/)) (* *@u/ a)*n+ +o +5*n+y / * 62-*r *n+ o + * a;oun+ #u* 5 / a)) no+ /n any a * (* )* + an!I&E $ NDRED "ESOS 6" 00.00 -)u + * o + o u/+ an# o+ *r)/+/=a+/on *B-*n * an#, /n a##/+/on, a ur+ *r u; o +*n -*r *n+ 610o a/# a;oun+ 5 / /n no a * a)) (* )* + an !I&E $ NDRED"ESOS 6" 00.00 , a an# or )/@u/#a+*# #a;a=* . [4]

T *r*a +*r, r* -on#*n+ #* au)+*# on + * ;on+ )y /n +a));*n+ . D* -/+*

r*-*a+*# #*;an# , + *y a/)*# +o -ay + */r o()/=a+/on un#*r + */r "ro;/ oryNo+*.

On Jun* 7, 1993, -*+/+/on*r /)*# a Co;-)a/n+ [7] or + * o))* +/on o a u; o;on*y (* or* + * R*=/ona) Tr/a) Cour+ o >an/)a, ran 1 . [8]Dur/n= + * +r/a),Ja ;*r !a;a+/ o, + * r*#/+ an# o))* +/on o / *r o -*+/+/on*r, -r* *n+*# /n* /#*n * + * r* -on#*n+ ? * : -ay;*n+ , + * #*;an# )*++*r #a+*# Ju)y 12,1991, + * u +o;*r? )*#=*r ar# or + * r* -on#*n+ , ano+ *r #*;an# )*++*r an#>*+ro-o)/+an an: #/ onor )/- . !a;a+/ o a#;/++*# + a+ * #/# no+ a *-*r ona) :no5)*#=* o + * +ran a +/on or + * *B* u+/on o any o + * * -/* * o#o u;*n+ary * /#*n *, 5 / a# ;*r*)y (**n *n#or *# +o /;.

On Ju)y , 199 , + * +r/a) our+ / u*# an Or#*r +*r;/na+/n= + * -r* *n+a+/ono * /#*n * or + * -*+/+/on*r. [9] T u , + * )a++*r or;a))y o *r*# /+ * /#*n * an#*B /(/+ an# r* +*# /+ a * on Ju)y , 199 .

R* -on#*n+ /)*# on Ju)y 29, 199 a D*;urr*r +o E /#*n * [10] or a))*=*#)a : o au * o a +/on. On No *;(*r , 199 , + * +r/a) our+ #/ ;/ *# [11] + *o;-)a/n+ or a/)ur* o -*+/+/on*r +o u( +an+/a+* /+ )a/; , + * * /#*n * /+ a#-r* *n+*# (*/n= ;*r*)y *ar ay.

On a--*a), + * Cour+ o A--*a) 6CA r* *r *# + * +r/a) our+ an# r*;an#*#+ * a * or ur+ *r -ro **#/n= .

$*n *, + / r* our *. [12]

Ru( n o5 our o5 A a(-

A or#/n= +o + * a--*))a+* our+, + * u#/ /a) a#;/ /on o r* -on#*n+* +a()/ *# + */r /n#*(+*#n* +o + * -*+/+/on*r, on + * =roun# + a+ + *ya#;/++*# + * #u* *B* u+/on o + * "ro;/ ory No+*, an# + a+ + */r on)y #* *n *

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5a + * a( *n * o an a=r**;*n+ on 5 *n + * /n +a));*n+ -ay;*n+ 5*r* +o(*=/n. In#**#, #ur/n= + * -r*+r/a), + *y a#;/++*# + * =*nu/n*n* no+ on)y o + *"ro;/ ory No+*, (u+ a) o o + * #*;an# )*++*r #a+*# Ju)y 12, 1991. E *n / + *-*+/+/on*r? 5/+n* a# no -*r ona) :no5)*#=* o + * * #o u;*n+ , + *y 5ou)#+/)) (* a#;/ /()* F/ + * -ur-o * or 5 / [+ *y ar*] -ro#u *# / ;*r*)y +o

* +a()/ + * a + + a+ + * +a+*;*n+ or #o u;*n+ 5a /n a + ;a#* or +o o5 /++*nor[,] an# u a + or +*nor / o /n#*-*n#*n+ r*)* an *.

* /#* , Ar+/ )* 19 an# 22 o + * C/ /) Co#* r*@u/r* + a+ * *ry -*r on ;u + /n + * *B*r / * o r/= + an# /n + * -*r or;an * o #u+/* a + 5/+ u +/ *, =/ *

a)) *) * + */r #u*, an# o( *r * on* +y an# =oo# a/+ . !ur+ *r, + * ru)* on* /#*n * ar* +o (* )/(*ra))y on +ru*# /n or#*r +o -ro;o+* + */r o( * +/ * an# +oa / + + * -ar+/* /n o(+a/n/n= u +, -**#y an# /n*B-*n / * #*+*r;/na+/on o ana +/on.

I--u

T * -*+/+/on*r ra/ * + / )on* / u*'

FT * $onora()* Cour+ o A--*a) -a+*n+)y *rr*# /n or#*r/n= + * r*;an#o + / a * +o + * +r/a) our+ /n +*a# o r*n#*r/n= u#=;*n+ on + * (a /o -*+/+/on*r? * /#*n *. [13]

!or an or#*r)y #/ u /on, 5* a)) #/ /#* + * / u* /n+o +5o -ar+ ' 6a )*=a)* * + o + * D*;urr*r +o E /#*n *, an# 6( + * #a+* 5 *n + * o()/=a+/on (* a;*#u* an# #*;an#a()*.

T our 6- Ru( n

T * "*+/+/on a ;*r/+. % /)* + * CA orr* +)y r* *r *# + * +r/a) our+, /+*rr*# /n r*;an#/n= + * a * or ur+ *r -ro **#/n= .

Consequences of a Reversal, on Appeal, of a Demurrer to Evidence

"*+/+/on*r on+*n# + a+ / a #*;urr*r +o * /#*n * / r* *r *# on a--*a), + *#* *n#an+ ou)# (* #**;*# +o a * 5a/ *# + * r/= + +o -r* *n+ * /#*n *, an#+ * a--*))a+* our+ ou)# r*n#*r u#=;*n+ on + * (a / o + * * /#*n *u(;/++*# (y + * -)a/n+/ . A r*;an# +o + * +r/a) our+ or ur+ *r -ro **#/n=5ou)# (* an ou+r/= + #* /an * o Ru)* 33, S* +/on 1 o + * 1997 Ru)* o Cour+.

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r* *r *# on a--*a). T *y +r* + a+ + * CA ;*r*)y oun# + *; /n#*(+*# +o-*+/+/on*r, (u+ 5a /)*n+ on 5 *n + */r o()/=a+/on (* a;* #u* an# #*;an#a()*.

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FSECTION 1. &emurrer to evidence.' A +*r + * -)a/n+/ a o;-)*+*#+ * -r* *n+a+/on o / * /#*n *, + * #* *n#an+ ;ay ;o * or #/ ;/ a)on + * =roun# + a+ u-on + * a + an# + * )a5 + * -)a/n+/ a o5n nor/= + +o r*)/* . I / ;o+/on / #*n/*#, * a)) a * + * r/= + +o -r* *n+* /#*n *. I + * ;o+/on / =ran+*# (u+ on a--*a) + * or#*r o #/ ;/ a)/ r* *r *# * a)) (* #**;*# +o a * 5a/ *# + * r/= + +o -r* *n+* /#*n *. [1 ]

EB-)a/n/n= + * on *@u*n * o a #*;urr*r +o * /#*n *, + * Cour+/n &/))anu* a Tran /+ . Ja *))ana [1 ] -ronoun *#'

FT * ra+/ona)* (* /n# + * ru)* an# #o +r/n* / /;-)* an# )o=/ a). T *#* *n#an+ / -*r;/++*#, 5/+ ou+ 5a/ /n= / r/= + +o o *r * /#*n * /n + ** *n+ + a+ / ;o+/on / no+ =ran+*#, +o ;o * or a #/ ;/ a) 6/.*., #*;ur+o + * -)a/n+/ ? * /#*n * on + * =roun# + a+ u-on + * a + a + u* +a()/ *# an# + * a--)/ a()* )a5, + * -)a/n+/ a o5n no r/= + +or*)/* . I + * +r/a) our+ denies + * #/ ;/ a) ;o+/on, /.*., /n# + a+-)a/n+/ ? * /#*n * / u / /*n+ or an a5ar# o u#=;*n+ /n + * a( *n *o on+rary * /#*n *, + * a * +/)) r*;a/n (* or* + * +r/a) our+ 5 /ou)# + *n -ro **# +o *ar an# r* */ * + * #* *n#an+? * /#*n * o

+ a+ a)) + * a + an# * /#*n * o + * on+*n#/n= -ar+/* ;ay (* -ro-*r)y-)a *# (* or* /+ or a# u#/ a+/on a 5*)) a (* or* + * a--*))a+* our+ ,/n a * o a--*a). No+ /n= / )o +. T * #o +r/n* / (u+ /n )/n* 5/+ + ** +a()/ *# -ro *#ura) -r* *-+ /n + * on#u + o +r/a) + a+ + * +r/a)our+ )/(*ra))y r* */ * a)) -ro *r*# * /#*n * a+ + * +r/a) +o *na()* /+ +or*n#*r /+ #* / /on 5/+ a)) -o /()y r*)* an+ -roo /n + * r* or#, + ua ur/n= + a+ + * a--*))a+* our+ u-on a--*a) a * a)) + * ;a+*r/a)(* or* + *; n* * ary +o ;a:* a orr* + u#=;*n+, an# a o/#/n= + *n**# o r*;an#/n= + * a * or r*+r/a) or r* *-+/on o /;-ro-*r)y*B )u#*# * /#*n *, 5/+ + * -o /(/)/+y + *r*a +*r o +/)) ano+ *r a--*a),5/+ a)) + * on o;/+an+ #*)ay . T * ru)*, o5* *r, /;-o * + *on#/+/on (y + * a;* +o:*n + a+ / / #*;urr*r / granted (y + * +r/a)our+, an# + * or#*r o #/ ;/ a) / reversed on appeal , + * ;o an+)o * / r/= + +o -r* *n+ * /#*n * /n / (* a) an# * a)) a * (**n#**;*# +o a * *)* +*# +o +an# on + * /n u / /*n y o -)a/n+/ ? a *an# * /#*n *. In u * *n+, + * a--*))a+* our+ 5 / r* *r * + *

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or#*r o #/ ;/ a) a)) -ro **# +o r*n#*r u#=;*n+ on + * ;*r/+ on + *(a / o -)a/n+/ ? * /#*n *. 6 n#*r or/n= u--)/*#

In o+ *r 5or# , #* *n#an+ 5 o -r* *n+ a #*;urr*r +o + * -)a/n+/ ? * /#*n *r*+a/n + * r/= + +o -r* *n+ + */r o5n * /#*n *, / + * +r/a) our+ #/ a=r** 5/+

+ *; / + * +r/a) our+ a=r** 5/+ + *;, (u+ on a--*a), + * a--*))a+* our+#/ a=r** 5/+ (o+ o + *; an# r* *r * + * #/ ;/ a) or#*r, + * #* *n#an+)o * + * r/= + +o -r* *n+ + */r o5n * /#*n *. [14] T * a--*))a+* our+ a)), /na##/+/on, r* o) * + * a * an# r*n#*r u#=;*n+ on + * ;*r/+ , /na ;u a a#*;urr*r a/; +o #/ oura=* -ro)on=*# )/+/=a+/on . [17]

In + * a * a+ (ar, + * +r/a) our+, a +/n= on r* -on#*n+ ? #*;urr*r +o* /#*n *, #/ ;/ *# + * Co;-)a/n+ on + * =roun# + a+ + * -)a/n+/ a# a##u *#;*r* *ar ay * /#*n *. $o5* *r, on a--*a), + * a--*))a+* our+ r* *r *# + *+r/a) our+ (* au * + * =*nu/n*n* an# + * #u* *B* u+/on o + * #/ -u+*# -/* *o * /#*n * a# /n a + (**n a#;/++*# (y #* *n#an+ .

A--)y/n= Ru)* 33, S* +/on 1 o + * 1997 Ru)* o Cour+, + * CA ou)# a *r*n#*r*# u#=;*n+ on + * (a / o + * * /#*n * u(;/++*# (y + *-*+/+/on*r. % /)* + * a--*))a+* our+ orr* +)y ru)*# + a+ F+ * #o u;*n+ary* /#*n * u(;/++*# (y + * [-*+/+/on*r] ou)# a * (**n a))o5*# an# a--r* /a+*#BBB, an# + a+ F+ * -*+/+/on*r -r* *n+*# @u/+* a nu;(*r o #o u;*n+ary *B /(/+BBB *nu;*ra+*# /n + * a--*a)*# or#*r, [18] 5* a=r** 5/+ -*+/+/on*r + a+ + * CAa# u / /*n+ * /#*n * on r* or# +o #* /#* + * o))* +/on u/+. A r*;an# / no+on)y ro5n*# u-on (y + * Ru)* , /+ / a) o )o=/ a))y unn* * ary on + * (a / o+ * a + on r* or#.

Due and Demandable Obligation

"*+/+/on*r )a/; + a+ r* -on#*n+ ar* )/a()* or + * 5 o)* a;oun+ o + */r#*(+ an# + * /n+*r* + + *r*on, a +*r + *y #* au)+*# on + * ;on+ )y /n +a));*n+ .

R* -on#*n+ , on + * o+ *r an#, oun+*r + a+ + * /n +a));*n+ 5*r* no+ y*+#u* an# #*;an#a()*. "*+/+/on*r a# a))*=*#)y a))o5*# + *; +o a--)y + */r-ro;o+/on *r / * or /+ /nan /n= (u /n* a -ay;*n+ o + * "ro;/ oryNo+*. T / 5a u--o *#)y * /#*n *# (y + * ()an: -a * )* + or + * #a+* on5 / + * /n +a));*n+ ou)# a * o;;*n *#. [19] In o+ *r 5or# , r* -on#*n++ *or/

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On + * on+rary, + * No+* *B-r* )y +/-u)a+*# + a+ + * #*(+ ou)# (*a;or+/ay 4,1993 un+/) u))y -a/#. %* #/ a=r**. T * No+* a)r*a#y +/-u)a+*# a )a+* -ay;*n+

-*na)+y o 2. -*r *n+ ;on+ )y +o (* a##*# +o *a un-a/# /n +a));*n+ un+/) u))y-a/#. "ay;*n+ o /n+*r* + 5a no+ *B-r* )y +/-u)a+*# /n + * No+*. T u , /+ou)# (* #**;*# /n )u#*# /n u -*na)+y.

In a##/+/on, + * No+* a) o -ro /#*# + a+ + * #*(+or 5ou)# (* )/a()* ora++orn*y? ** *@u/ a)*n+ +o 2 -*r *n+ o + * a;oun+ #u* /n a * a )*=a) a +/on5a /n +/+u+*# an# 10 -*r *n+ o + * a;* a;oun+ a )/@u/#a+*##a;a=* . L/@u/#a+*# #a;a=* , o5* *r, ou)# no )on=*r (* /;-o *# or (*/n=un on /ona()*. [2 ] Su #a;a=* ou)# a) o (* #**;*# /n )u#*# /n + * 2.

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-*r *n+ ;on+ )y -*na)+y. !ur+ *r;or*, 5* o)# + a+ -*+/+/on*r / *n+/+)*# +oa++orn*y? ** , (u+ on)y /n a u; *@ua) +o 10 -*r *n+ o + * a;oun+ #u* 5 /5* #**; r*a ona()* un#*r + * -ro *n a + . [2 ]

T * Cour+ #**; /+ /;-ro-*r +o #/ u r* -on#*n+ )a/; or ;ora) an#o+ *r #a;a=* . No+ a /n= a--*a)*# + * CA D* / /on, + *y ar* no+ *n+/+)*# +oa /r;a+/ * r*)/* , a a)r*a#y *B-)a/n*# *ar)/*r. [24]

%$ERE!ORE, + * "*+/+/on / GRANTED. T * a--*a)*# D* / /on/ >ODI!IED /n + a+ + * r*;an# / SET ASIDE an# r* -on#*n+ ar* or#*r*# TO"A "138,9 8, -)u 2. -*r *n+ -*na)+y ar=* -*r ;on+ (*=/nn/n= A-r/) 2,1991 un+/) u))y -a/#, an# 10 -*r *n+ o + * a;oun+ #u* a a++orn*y? ** . Noo + .

SO OR%ERE%.

Melo, (!hairman), $itug, *urisima, an# +onzaga %eyes, JJ., on ur .

[1] Rollo , pp. 23-30. Promulgated by the Third Division omposed o! ". #amon $abutas "r., ponente% ""&merito '. 'ui, Division hairman, and (ilarion ). *+uino, member, both on urring.[2] Rollo , p. 20. n this #esolution, ". 'ui as repla ed by ". 'orona bay- omera.[3] *ssailed De ision, p. /%rollo , p. 2 .[ ] Rollo , p. 20.[ ] *nne 4'%5 rollo , p. 31.[6] *nne 4'%5 rollo , p. 31.[/] Rollo , pp. 32-3 .[7] Presided by "udge no en io D. $aliaman.[ ] *ppellant8s 9rie! be!ore the '*, p. % rollo , p. 7.[10] Rollo , pp. 3/-37.[11] Rollo , pp. 0- 1.[12] This ase as deemed submitted !or de ision upon re eipt by this 'ourt on *pril 27, 2000 o! the petitioner8s $emorandum, signed by *tty. *llan 9. :epty o! ingson ;alde< = *sso iates. #espondents8$emorandum, signed by *tty. &duardo ;. 9ringas o! #omeo #. 9ringas = *sso iates, as re eivedearlier, on *pril 3, 2000.[13] $emorandum !or the Petitioner, p. %rollo , p. 6. >riginal ritten in apital letters.[1 ] n the old #ules, the same provision is orded in e tion 1 o! #ule 3 as !ollo s?4 &'T >@ 1. Effect of judgment on demurrer to evidence. *!ter the plainti!! has ompleted the presentation o! his eviden e, the de!endant ithout aiving his right to o!!er eviden e in the event themotion is not granted, may move !or a dismissal on the ground that upon the !a ts and the la the plainti!!has sho n no right to relie!. (o ever, i! the motion is granted and the order o! dismissal is reversed onappeal, the movant loses his right to present eviden e in his behal!.5[1 ] 33 '#* / , /61-/62, "une 30, 1 /0, per Aaldivar, J.[16] iayng o v. 'ostibolo, 2/ '#* 2/2, 27 , Bebruary 27, 1 6 % Tison v. 'ourt o! *ppeals , 2/6 '#*72, -600, "uly 31, 1 /.

[1/] *tun v. @uCe< , / Phil. /62, /6 , > tober 26, 1 % *rroyo v. *

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v. @ational )abor #elations 'ommission, 300 '#* 3/, De ember 10, 1 7% Eueayor, $on. G*;/)/ano C.Lo-*

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1 4848M10 9 o + * R*=/ +*r o D**# o >an/)a, +o=*+ *r 5/+ + */;-ro *;*n+ + *r*on :no5n a + * Ar;y an# Na y o >an/)a

3. T a+ #* *n#an+ / o u-y/n= + * a(o * #* r/(*# )an# an# + * Ar;y an#Na y C)u( u/)#/n= (y /r+u* o a Con+ra + o L*a * *B* u+*# (*+5**n-)a/n+/ an# #* *n#an+ /n January 1983, o-y o 5 / / a++a *# *r*+o a

Ann*B A. T a+ -ara=ra- 1 o + * a/# Con+ra + o L*a * -ro /#* + a+'

G1H That the )& && shall onstru t, at its o n e pense, a modern multi-storied hotel at a ost o! not less than B BTI $ )) >@ P& > GP 0,000.00HGsi H, hi h shall automati ally belong to the )& ># upon the e pirationandJor termination o! the lease agreement, ithout right o! the )& && !orreimbursement !or the osts o! its onstru tion% P#>; D&D, (>K&;, thatonstru tion o! the said hotel shall be ommen ed ithin one G1H year, andompleted as !ar as pra ti able ithin !ive G H years, !rom date o! approval by

proper government o!!i ials o! this lease agreement% P#>; D&D, BL#T(,that the plans and spe i!i ation !or the same hotel shall be approved !irst by the)& ># be!ore a tual onstru tion%

. T a+ /n /o)a+/on o + * a or*@uo+*# -ro / /on, #* *n#an+ a a/)*# an#Morr* u *# +o on +ru + a ;o#*rn ;u)+/ +or/*# o+*) -ro /#*# or + *r*/n, )on=a +*r + * *B-/ra+/on -*r/o# + *r*/n +/-u)a+*# an# #* -/+* #*;an# o -)a/n+/ ,+o + * -r* u#/ * o -)a/n+/ 5 o a a=r**# +o #* *n#an+ on+/nu*#r*+*n+/on o + * -ro-*r+y on a )*a * (a : a=r**;*n+ on + * (a / o + *5arran+/* o #* *n#an+ +o -u+ u- a on+*;-orary ;u)+/ +or/*# (u/)#/n=

4. T a+ -ara=ra- 3 o + * Con+ra + o L*a * a) o +/-u)a+* + a+'

G3H That the )& && shall pay a rent o! TK> (L@D#&D B BTIT(>L *@D P& > GP2 0,000.00H a year, hi h may be paid by the)& && in t elve G12H e+ually monthly installments ithin the !irst !iveG H days o! ea h month, ithout the ne essity o! a demand, sub e t,ho ever, to rental ad ustment a!ter the !irst !ive G H days o! ea h month,ithout the ne essity o! a demand, sub e t, ho ever, to rentalad ustment a!ter the !irst !ive years o! this lease, at the rate o! not morethan ten per entum G10MH per annum every t o years, or on the basis o!the in rease in the prevailing marFet value o! the leased premiseshi hever is higher o! the t o riteria%

7. T a+ #* *n#an+ a) o r*n*=*# on /+ r*n+a) o()/=a+/on no+5/+ +an#/n=-)a/n+/ #*;an# +o -ay, or /+ u * an# o u-an y o + * -)a/n+/ -ro-*r+y,+ar+/n= ro; January 1983 +o + * -r* *n+, an# /+ r*n+a) a oun+ +oo#a+ "1,40 ,144.70 a o >ay, 1989

8. T a+ /n -ara=ra- o + * Con+ra + o L*a *, /+ / a) o -ro /#*# + a+'

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G H That the )& && shall pay the realty ta due on the land, in ludingthose assessed against the improvements thereon, as ell as all governmentli ense, permits, !ees and harges pres ribed by la , Presidential de rees andordinan es !or the leased premises, in luding those !or the establishment andoperation o! a modern multi-storied hotel and all onstru tions andmodi!i ations pursuant to the provisions o! this 'ontra t%

9. T a+ #* *n#an+ /o)a+*# /+ un#*r+a:/n= +o -ay + * +aB* #u* on + * )an#an# /;-ro *;*n+, o ;u o + a+ a o D* *;(*r 1989, /+ a==r*=a+*r*a)+y +aB )/a(/)/+y a;oun+ +o "3,818,913.81

10. T a+ r*-*a+*# #*;an# o -)a/n+/ a# (**n ;a#* u-on + *#* *n#an+ +o o;-)y 5/+ /+ a or* a/# on+ra +ua) o()/=a+/on , (u+ #* *n#an+o5* *r r*;a/n*# un aay 2 , 1989, o-y o 5 / / a++a *# *r*+o a ANNE . To#a+* o5* *r, #* *n#an+ o5* *r, a no+ (u#=*# an /n ro; + * -ro-*r+yo -)a/n+/

12. T a+ + * r*a ona()* r*n+a) a)u* or #* *n#an+ on+/nu*# u * an#o u-an y o + * u( * + -r*;/ * 5 / / a -r/;* -ro-*r+y a)on= Ro

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t o years !rom "anuary, 1 73 until it !inally va ates and surrenders the premises to the plainti!!%

H the osts o! suit.

> >#D&D. [3]

On a--*a), + * R*=/ona) Tr/a) Cour+ -r* /#*# (y Ju#=* %/) r*#o D. R*y*a /r;*# in toto + * u;;ary u#=;*n+ o + * >*+ro-o)/+an Tr/a) Cour+. [ ]

"*+/+/on*r *)* a+*# /+ a * +o + * Cour+ o A--*a) . On O +o(*r 30, 1992,+ * Cour+ o A--*a) #/ ;/ *# + * a--*a).

On >ay 18, 1994, + * Cour+ o A--*a) / u*# a r* o)u+/on #*ny/n= + *;o+/on or r* on /#*ra+/on o + * #* / /on #a+*# O +o(*r 30, 1992. A+ + * a;*+/;*, /+ a) o #*n/*# + * C/+y o >an/)a ;o+/on or / uan * o a 5r/+ o *B* u+/on-*n#/n= a--*a).

"*+/+/on*r /)*# + * /n +an+ -*+/+/on ra/ /n= + * o))o5/n= / u* '

1. #& P>@D&@T '>L#T :#*;&)I #&D @ LP(>)D @: T(&>L T >B (& @ P&T T >@ B#>$ T(& D PLT&D P#&$ &K( '( * ')&*# T#*@ :#& >@ >B T(& B>#$*)D&')*#*T >@ >B T(& T& >B (& @ P&T T >@ * *( T># '*) )*@D$*#N.

2. K(&T( ># @>T #& P>@D&@T '>L#T >B *PP&*)

>L )I #&D @ *BB #$ @: T(& D&' >@ >B#& P>@D&@T $&T#>P>) T*@ T# *) '>L#T G$T'H *@D#&: >@*) T# *) '>L#T G#T'H "LD:& D&@I @: *D$ >@ >BP&T T >@O *$&@D&D *@ K.

3. K(&T( ># @>T #& P>@D&@T '>L#T >B *PP&*) #&D@ *BB #$ @: T(& L$$*#I "LD:$&@T #&@D&D 9I#& P>@D&@T $T' *@D #T' "LD:& .

. K(&T( ># @>T #& P>@D&@T '>L#T >B *PP&*) #&D

@ @>T (>)D @: T(*T P&T T >@ K* D&@ &D DL& P#>'&9I T(& #&@D T >@ >B L$$*#I "LD:$&@T *:* @ T T.

. * *@ @' D&@T T> T(& $* @ L&, T(& P#>PTI,L9"&'T $*TT >B T( '* &, >B PL9) ' D>$* @ *@DT(&B>#&, T(& '>@T#*'T >B )&* & & &'LT&D 9I T(& ' TI>B $*@ )* @ B*;># >B P&T T >@ ;> D. [ ]

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T *r* / no ;*r/+ /n + * -*+/+/on.

A;/# + a)) + * / u* ra/ *# (y + * -*+/+/on*r, + * /n +an+ a * / a /;-)** * +;*n+ u/+.

T *r* / no #/ -u+* + a+ + * C/+y o >an/)a / + * o5n*r o a -r/;* -ar *) o

)an# 5/+ an ar*a o 12,70 .30 @uar* ;*+*r )o a+*# a+ Sou+ ou)* ar# orn*r>an/)a ay +o=*+ *r 5/+ + * /;-ro *;*n+ + *r*on :no5n a Ar;y an# Na yC)u( o >an/)a. "*+/+/on*r *n+*r*# /n+o a )*a * on+ra + 5/+ -r/ a+* r* -on#*n+o;*+/;* /n January, 1983. In a/# )*a * on+ra +, /+ a=r**# +o' 1 -ay an annua)a r*n+ o "2 0,000.00 5/+ a 10 /n r*a * * *ry +5o 62 y*ar 2 -ay + * r*a)+y+aB #u* on + * )an# an# 3 on +ru + a ;o#*rn ;u)+/ +or*y o+*) -ro /#*# or+ *r*/n 5/+ /n / * 6 y*ar 5 / a)) (*)on= +o + * C/+y u-on *B-/ra+/on or+*r;/na+/on o + * )*a * 5/+ ou+ r/= + o r*/;(ur *;*n+ or + * o + oon +ru +/on. [4]

"*+/+/on*r a/)*# +o -ay + * r*n+ or * *n 67 on * u+/ * y*ar . A oO +o(*r, 1989 5 *n + * a +/on 5a /)*#, r*n+a) arr*ar (a))oon*# +o" 7.2 ;/))/on.R*a) * +a+* +aB* on + * )an# a u;u)a+*# +o "4, 1, 08.28 a o >ay,1971. >or*o *r, -*+/+/on*r a/)*# +o *r* + a ;u)+/ +or*y o+*) /n + * /+*. !or/o)a+/on o + * )*a * on+ra + an# a +*r * *ra) #*;an# , + * C/+y o >an/)a a#no o+ *r r* our * (u+ +o /)* + * a +/on or /))*=a) #*+a/n*r an# #*;an# -*+/+/on*r* / +/on ro; + * -r*;/ * . Ar+/ )* 1473 o + * N*5 C/ /) Co#* / *B-)/ /+'

ART. 1673. The lessor may udi ially e e t the lessee !or any o! the!ollo ing auses?

61 % *n + * -*r/o# a=r**# u-on, or + a+ 5 / / /B*# or + * #ura+/on o)*a * un#*r ar+/ )* 1482 an# 1487, a *B-/r*#

62 La : o -ay;*n+ o + * -r/ * +/-u)a+*#

63 &/o)a+/on o any o + * on#/+/on a=r**# u-on /n + * on+ra +

6 % *n + * )* ** #* o+* + * + /n= )*a *# +o any u * or *r / * no++/-u)a+*# 5 / au * + * #*+*r/ora+/on + *r*o or / * #o* no+ o( *r *+ * r*@u/r*;*n+ /n No. 2 o ar+/ )* 14 7, a r*=ar# + * u * + *r*o .

T * * * +;*n+ o +*nan+ o a=r/ u)+ura) )an# / =o *rn*# (y -* /a) )a5 .6*;- a / u--)/*#

"*+/+/on*r /n o:* an# a-/+a)/

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-r* *r * an# -ro+* + + * /;-or+an+ u)+ura) -ro-*r+/* an# Na+/ona) Cu)+ura)Tr*a ur* o + * na+/on an# +o a *=uar# + */r /n+r/n / a)u*. [7]

T * >ar:*r r*a# a o))o5 '

'T B '*T& >B T#*@ B *@D

*''&PT*@'& >B ( T># '*) $*#N *#$I *@D @*;I ')L9

T> *)) P >@ T> K(>$ T(& & P#& &@T $*I '>$&?

9e it Fno n that the @ational (istori al nstitute, in the e er ise o! its authorityvested by la and in omplian e ith its mandate to honor national heroes and perpetuate the glory o! their deeds, and to preserve histori al sites, hastrans!erred this histori al marFer unto *dministration o! *rmy and @avy 'lub,ho has agreed to a ept the same and to maintain it as a sa red duty.

@ K T@& K(&>B, the parties have hereunto set their hands this2 th day o! "une, 1 2, in $anila.

@*T >@*) ( T># '*)@ T TLT&

by?

G :D.H ))&: 9)& G :D.H

))&: 9)& '*PT. ; '&@T& ".9# ))*@T& *B @ D. EL * >@

Trans!eree Trans!eror

*ttested?

G :DH ))&: 9)& G :D.H))&: 9)&

'( &B LPT "> & P' ;*) *D >@: *;&) @* $.'* T*@&D*

L9 '# 9&D *@D K>#@ to be!ore me in $anila, Philippines, this 2 thday o! "une, 1 2 by the a!!iants.

G :D.H ))&: 9)& G :D.H ))&: 9)&

http://sc.judiciary.gov.ph/jurisprudence/1997/apr1997/110223.htm#_edn7http://sc.judiciary.gov.ph/jurisprudence/1997/apr1997/110223.htm#_edn7

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9:&@ *@T>@ > ;. #L T * '>) $*@L&) #.:L&;*#*

G :D.H ))&: 9)& G :D.H ))&: 9)*$>@ ". IT*@:'>, "#. '*PT. D*@ &) *.

*##&>)*

G :D.H )>P& $. ;&)* '> @>T*#I PL9) '

$y 'ommission & pires De . 31, 1 3

@ot. #eg. @o. 2 / PT#022077Page 61 1-2-2, $anila9ooF 9P3201 /eries o! 1 2 12-17- 1, Pasig[7]

% /)* + * #* )ara+/on + a+ /+ / a / +or/ a) )an#;ar: / no+ o( * +/ona()*, + *r* o=n/+/on / , o5* *r, -* /ou . %* +a:* + * o a /on +o *)u /#a+* on + */*5 o !r. Joa@u/n *rna 5 o 5a /n /+*# a amicus curiae /n + * r* *n+ a *o Manila *rince -otel v. +S S [9] 5 *r* + * / +or/ a) ara +*r o >an/)a $o+*)5a a) o #*a)+ 5/+ . $* +a+*# + a+'

The ountryOs artisti and histori ealth is there!ore a proper sub e t !or thee er ise o! poli e po er?Q. . . hi h the tate may regulate.Q This is a !un tiono! the legislature. *nd on e regulation omes in, due pro ess also omes into play. Khen the lassi!i ation o! property into histori al treasures or landmarFsill involve the imposition o! limits on o nership, the 9ill o! #ights demandsthat it be done ith due pro ess both substantive and pro edural. nre ognition o! this onstitutional prin iple, the tate in !a t has promulgatedla s, both general and spe ial, on the sub e t.

the urrent general la on the sub e t is #.*. 7 6, approved on "une 17,1 66, and amended by P.D. @o. 3/ . The * t pres ribes the manner o!lassi!ying histori al and ultural properties thus?

e . . The @ational $useum, hereina!ter re!erred to as the $useum shall bethe agen y o! the government hi h, shall implement the provisions o! this* t.

http://sc.judiciary.gov.ph/jurisprudence/1997/apr1997/110223.htm#_edn8http://sc.judiciary.gov.ph/jurisprudence/1997/apr1997/110223.htm#_edn9http://sc.judiciary.gov.ph/jurisprudence/1997/apr1997/110223.htm#_edn8http://sc.judiciary.gov.ph/jurisprudence/1997/apr1997/110223.htm#_edn9

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e . . The Dire tor o! the $useum, hereina!ter re!erred to as the Dire tor,shall undertaFe a ensus o! the important ultural properties o! the Philippines,Feep a re ord o! their o nership, lo ation, and ondition, and maintain an up-to-date register o! the same. Private olle tors and o ners o! important ultural properties and publi and private s hools in possession o! these items, shall bere+uired to register their olle tions ith the $useum hen re+uired by theDire tor and to report to the same o!!i e hen re+uired by the Dire tor any nea +uisitions, sales, or trans!ers thereo!.

e . 6. The Dire tor is authori

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b. Kithin ea h Find or lass o! ob e ts, only the rareand uni+ue ob e ts may be designated as Q@ational 'ulturalTreasures.Q The remainder, i! any, shall be treated as ultural property.

. Designated Q@ational 'ultural TreasuresQ shall be marFed, des ribed, and photographed by the @ational $useum. The o ner retains possession o! thesame but the $useum shall Feep a re ord ontaining su h in!ormation as? nameo! arti le, o ner, period, sour e, lo ation, ondition, des ription, photograph,identi!ying marFs, appro imate value, and other pertinent data.

Thus, !or $anila (otel to be treated as spe ial ultural or histori al property, itmust go through the pro edure des ribed above. &lo+uent nationalistiendorsements o! lassi!i ation ill not trans!orm a pie e o! property into alegally re ognian/)a * *n o( *r *# + a+ + * /=na+or/* + *r*+o ar*o / *r an# ;*;(*r o + * C)u( [10] ;a:/n= u *r+/ / a+/on *) *r /n=. I+(* oo * u +o + /n: 5 y + * #* )ara+/on 5a on *rr*# on)y /n 1992, + r** 63y*ar a +*r + * a +/on or * * +;*n+ 5a /n +/+u+*#. %* an on)y ur;/ * + a+ + /5a ;*r*)y an a +*r+ ou= +, an a++*;-+ +o + 5ar+ any )*=a) a +/on +a:*n a=a/n ++ * -*+/+/on*r. Non*+ *)* , u *r+/ / a+/on #o* no+ =/ * any au+ or/+y +o + *-*+/+/on*r +o )ay )a/; o o5n*r /-, or any r/= + o *r + * u( * +-ro-*r+y. No5 *r* /n + * )a5 #o* /+ +a+* + a+ u r* o=n/+/on =ran+-o * ory r/= + o *r + * -ro-*r+y +o + * -*+/+/on*r. Nor / + * Na+/ona)$/ +or/ a) Co;;/ /on =/ *n + * au+ or/+y +o * + u r/= + o o5n*r /- or-o * /on o a -r/ a+* -ro-*r+y +o + * -*+/+/on*r. T * )a5 ;*r*)y +a+* + a+ /+

a)) (* + * -o)/ y o +a+* +o -r* *r * an# -ro+* + + * /;-or+an+ u)+ura)-ro-*r+/* an# Na+/ona) Cu)+ura) Tr*a ur* o + * na+/on an# +o a *=uar# + */r/n+r/n / a)u*. In )/n* 5/+ + / , any r* +ora+/on, r* on +ru +/on or -r* *r a+/on o/ +or/ a) (u/)#/n= a)) on)y (* ;a#* un#*r + * u-*r / /on o + * D/r* +or o + *Na+/ona) >u *u;. [11] T * au+ or/+y o + * Na+/ona) $/ +or/ a) Co;;/ /on / )/;/+*#on)y +o + * u-*r / /on o any r* on +ru +/on, r* +ora+/on or -r* *r a+/on o + *ar /+* +ura) #* /=n o + * /#*n+/ /*# / +or/ a) (u/)#/n= an# no+ /n= ;or*. E *na u;/n= + a+ u r* o=n/+/on ;a#* (y + * Na+/ona) $/ +or/ a) Co;;/ /on /a)/#, + * / +or/ a) /=n/ / an * o + * C)u(, / any, a)) no+ (* a * +*# /

-*+/+/on*r * / +/on ro; + * -r*;/ * / 5arran+*#. n or+una+*)y, -*+/+/on*r /;*r*)y a )* ** o + * -ro-*r+y. y /r+u* o + * )*a * on+ra +, -*+/+/on*r a#o()/=a+/on +o u) /)). "*+/+/on*r an no+ u + /#* (* /n# o;* r* o=n/+/on(* +o5*# u-on /+ /n or#*r +o * a-* ro; /+ o()/=a+/on or r*;a/n /n-o * /on. I+ /o)a+*# + * +*r; an# on#/+/on o + * )*a * on+ra +. T u ,-*+/+/on*r * / +/on ro; + * -r*;/ * / /n* /+a()*.

An*n+ + * -ro *#ura) / u* ra/ *#, + * Cour+ /n# no r* *r /()* *rror /n + *u;;ary u#=;*n+ r*n#*r*# (y + * +r/a) our+.

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A u;;ary u#=;*n+ / on* =ran+*# (y + * our+ u-on ;o+/on (y a -ar+y oran *B-*#/+/ou *++)*;*n+ o + * a *, + *r* a--*ar/n= ro; + * -)*a#/n= ,#*-o /+/on , a#;/ /on , an# a /#a /+ + a+ + *r* ar* no /;-or+an+ @u* +/on or/ u* o a + /n o) *# 6*B *-+ a +o + * a;oun+ o #a;a=* , an# + a+ + *r* or*+ * ;o /n= -ar+y / *n+/+)*# +o a u#=;*n+ a a ;a++*r o )a5. [12]

In + * a * a+ (ar, + *r* / )*ar)y no u( +an+/a) +r/a()* / u*. In + * An 5*r/)*# on D* *;(*r 29, 1989, -*+/+/on*r #o* no+ #*ny + * *B/ +*n * o + * )*a *on+ra + *B* u+*# 5/+ + * C/+y o >an/)a /n January 1983. I+ a#;/++*# + a+ /+a/)*# +o -ay + * r*n+ an# r*a) * +a+* +aB* an# on +ru +/on o a ;u)+/ +or*y(u/)#/n=.

I+ -u+ u- + * #* *n * + a+ /+ 5a una()* +o u) /)) /+ o()/=a+/on o + * on+ra +#u* +o * ono;/ r* * /on /n 198 a an a +*r;a+ o + * N/noy A@u/noa a /na+/on. Con /#*r/n= + a+ + *r* / no =*nu/n* / u* a +o any ;a+*r/a) a +,a u;;ary u#=;*n+ / -ro-*r. T * ar=u;*n+ + a+ /+ 5a #* )ar*# a / +or/ a))an#;ar:, / no+ a u( +an+/a) / u* o a + 5 / #o* no+, /n any 5ay, a)+*r or

a * + + * ;*r/+ o + * * * +;*n+ u/+.L/:*5/ *, 5* /n# no *rror ;u )* any a(u * o au+ or/+y on + * -ar+ o + *

)o5*r our+ /n no+ a#;/++/n= + * A;*n#*# An 5*r. A /#* ro; + * a + + a+ /+ 5a/)*# on* 61 y*ar a +*r + * or/=/na) an 5*r 5a /)*#, /+ -u+ u- #* *n * 5 / ar**n+/r*)y /n on+ra#/ +/on +o /+ or/=/na) an 5*r. T / / /n on+ra *n+/on o + * ru)*o -ro *#ur*. [13] $a /n= a#;/++*# /n + * or/=/na) an 5*r + a+ + * C/+y o >an/)a /+ * r*=/ +*r*# o5n*r o + * -ro-*r+y an# + a+ /+ )*a *# + * -ro-*r+y ro; /+,-*+/+/on*r an no+ no5 #*ny u )a/; o o5n*r /-. T * Cour+ o A--*a)orr* +)y o( *r *# on + / -o/n+'

9e that as it may, at this last stage, a!ter herein petitioner has dealt ith the private respondent as the o ner o! the leased premises and obtained bene!its!rom said a Fno ledgment o! su h o nership !or almost hal! a entury, herein petitioner annot be permitted to assume an in onsistent position by denyingsaid private respondentOs o nership o! the leased premises hen the situationalls !or it. (erein petitioner annot be allo ed to double deal, re ogni

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[1] %ollo, --. 81 8 .[2] d. , a+ 108.

[3] d. , a+ 12 .[ ] d ., a+ 127.[ ] d. , a+ 27 28.[4] d ., a+ 203 20 .

[7] "RESIDENTIAL DECREE NO. 37 A>ENDING CERTAIN SECTIONS O!RE" LIC ACT NO. 8 4. OT$ER%ISE PNO%N AS T$E C LT RAL"RO"ERTIES "RESER&ATION AND "ROTECTION ACT'

B B B

S* . 2. I+ / *r*(y #* )ar*# +o (* + * -o)/ y o + * +a+* +o -r* *r * an# -ro+* + + */;-or+an+ u)+ura) -ro-*r+/* an# Na+/ona) Cu)+ura) Tr*a ur* o + * na+/on an# +o a *=uar# + */r/n+r/n / a)u*.

S* . 3. B B B

a. !ultural properties ar* o)# (u/)#/n= , ;onu;*n+ , r/n* , #o u;*n+ , an# o( * +5 / ;ay (* )a / /*# a an+/@u* , r*)/ , or ar+/ a + , )an#;ar: , an+ ro-o)o=/ a) an# / +or/ a)/+* , an# -* /;*n o na+ura) / +ory 5 / ar* o u)+ura), / +or/ a), an+ ro-o)o=/ a) or/*n+/ / a)u* an# /=n/ / an * +o + * na+/on u a - y / a), an+ ro-o)o=/ a), ar a*o)o=/ a)

an# *+ no=ra- / a) ;a+*r/a) , ;*+*or/+* an# +*:+/+* / +or/ a) o( * + an# ;anu r/-+ou * o)# an# a=r/ u)+ura) /;-)*;*n+ #* ora+/ * ar+/ )* or -*r ona) a#orn;*n+ 5or: o ar+u a -a/n+/n= , u)-+ur* , ar /n= , *5*)ry, ;u / ar /+* +ur*, :*+ * , #ra5/n= , or/))u +ra+/on /n -ar+ or /n 5 o)* 5or: o /n#u +r/a) an# o;;*r /a) ar+ u a urn/+ur*, -o++*ry,

*ra;/ , 5rou= + /ron, =o)#, (ron

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[11] S* . 13. A)) r* +ora+/on , r* on +ru +/on , an# -r* *r a+/on o =o *rn;*n+ / +or/ a) (u/)#/n= ,r/n* , )an#;ar: , ;onu;*n+ , an# /+* , 5 / a * (**n #* /=na+*# a Na+/ona) Cu)+ura)

Tr*a ur* , an# /;-or+an+ u)+ura) -ro-*r+/* a)) on)y (* un#*r+a:*n 5/+ + * 5r/++*n -*r;/ /ono + * D/r* +or o + * Na+/ona) >u *u; 5 o a)) #* /=na+* + * u-*r / /on o + * a;*.[12] S* . 1, 2, 3, Ru)* 3 . " /)/--/n* Na+/ona) an: vs. Noa Ar: Su=ar R* /n*ry, 224 SCRA 3461993 &*r=ara, Sr. vs. Su*)+o, 1 4 SCRA 7 3 61987 >*r a#o v. Cour+ o A--*a) , 142 SCRA7 61988 .[13] Ru)* 10, S* . 3.[1 ] %ollo, --. 7 74.

)a5- /)

To#ay / %*#n* #ay, Au=u + 21, 2013

S*ar,.

R*-u()/ o + * " /)/--/n*S!#RE*E O!RT

a=u/o C/+y

SECOND DI&ISION

G.R. No. 1>382' A r ( 2>, 200)

IAN ONSTR! TION AN% %E&ELO#*ENT OR#ORATION, "*+/+/on*r,

ILI##INE O**ER IAL INTERNATIONAL /AN

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+ / -*+/+/on or r* /*5 un#*r Ru)* o + * Ru)* o Cour+, -*+/+/on*r A /an Con +ru +/on an# D* *)o-;*n+-ora+/on or ASIAPONSTR PT, **: + * r* *r a) an# *++/n= a /#* o + * #* / /on 1#a+*# >ar 1 , 2002 an#R* o)u+/on 2 #a+*# Jun* 3, 2002 o + * Cour+ o A--*a) 6CA /n CA G.R. C& No. 48189. T * a a/)*# #* / /on; 5/+ ;o#/ / a+/on + * Su;;ary Ju#=;*n+ r*n#*r*# (y + * R*=/ona) Tr/a) Cour+ 6RTC o >a:a+/ C/+y /n anon or a u; o ;on*y + *r*a+ o;;*n *# (y + * *r*/n r* -on#*n+, " /)/--/n* Co;;*r /a) In+*rna+/ona) an:

CI ANP a=a/n + + * -*+/+/on*r, 5 /)* + * a))*n=*# r* o)u+/on #*n/*# -*+/+/on*r? ;o+/on or r* on /#*ra+/on.

a + '

!*(ruary 2 , 1999, /n + * RTC o >a:a+/ C/+y, r* -on#*n+ "CI ANP /)*# a o;-)a/n+ 3 or a u; o ;on*y 5/+y*r or a 5r/+ o -r*)/;/nary a++a ;*n+ a=a/n + -*+/+/on*r ASIAPONSTR PT. Do :*+*# a C/ /) Ca * No. 99 32,

o;-)a/n+ a))*=*#, /n+*r a)/a, a o))o5 '

!IRST CA SE O! ACTION

1 On ar/ou o a /on , ASIAPONSTR PT o(+a/n*# .S. #o))ar #*no;/na+*# r*#/+ a o;;o#a+/on ro;ANP /n + * a;oun+ o !our >/))/on !our $un#r*# E/= +y S* *n T ou an# .S. #o))ar 6 SH , 87,000.00 ,)u / * o /n+*r* + , ar=* an# ** + *r*on an# + * o + o o))* +/n= + * a;*. T * * r*#/+ a o;;o#a+/ono *r*# (y + * o))o5/n= -ro;/ ory no+* '

BBB BBB BBB

2 "ro;-+ an# a/+ u) -ay;*n+ o a)) + * or*=o/n= -ro;/ ory no+* 5a * ur*# (y + * o))o5/n= #**# o=n;*n+ *B* u+*# (y ASIAPONSTR PT /n a or o "CI ANP'

6a D**# o A /=n;*n+ o R* */ a()* MCon+ra + "ro **# #a+*# 20 Ju)y 199 Q 5 *r* ASIAPONSTR PTa /=n*# /+ r* */ a()* ro; /+ Con+ra + Q 5/+ + * Na+/ona) "o5*r Cor-ora+/on 6N"C /n + * a;oun+ o

Q." , 00,000

6( D**# o A /=n;*n+ o R* */ a()* Q #a+*# 28 Jun* 199 Q 5 *r* ASIAPONSTR PT a /=n*# /+r* */ a()* ro; /+ Con+ra + Q 5/+ + * N"C /n + * a;oun+ o Q"24,281,000.00

6 D**# o A /=n;*n+ o R* */ a()* #a+*# 28 Au=u + 199 Q 5 *r* ASIAPONSTR PT a /=n*# /+r* */ a()* ro; /+ Su( Con+ra + 5/+ A "o5*r, In ., /n + * a;oun+ o " 3,000,000.00

6# D**# o A /=n;*n+ o Con+ra + "ro **# #a+*# 27 >ar 1994 Q 5 *r* ASIAPONSTR PT a /=n*# /+r* */ a()* ro; /+ on+ra + 5/+ "NOC Q /n + * a==r*=a+* a;oun+ o " 4,000,000.00 an#

6* D**# o A /=n;*n+ o Con+ra + "ro **# Q #a+*# 20 !*(ruary 1997 Q 5 *r* ASIAPONSTR PTa /=n*# /+ r* */ a()* ro; + * Or;a+ " /)/--/n* , In ., /n + * a==r*=a+* a;oun+ o SH3,3 0,000.00

3 A)) + * or*=o/n= #**# o a /=n;*n+ +/-u)a+*, a;on= o+ *r , + * o))o5/n= +*r; an# on#/+/on '

a T * a /=n;*n+ / or + * -ur-o * o * ur/n= -ay;*n+ o + * -r/n /-a) a;oun+ an# + * /n+*r* + an# (an:ar=* a ru/n= + *r*on, + * o + o o))* +/n= + * a;* an# a)) o+ *r *B-*n * 5 / "CI ANP ;ay (* -u+

/n onn* +/on 5/+ or a an /n /#*n+ o + * a /=n;*n+

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( T a+ + * a /=n;*n+ * ur* a) o any *B+*n /on or r*n*5a) o + * r*#/+ 5 / / + * u( * + + *r*o a anyan# a)) o+ *r o()/=a+/on o ASIAPONSTR PT o 5 a+* *r :/n# an# na+ur* a a--*ar /n + * r* or# o"CI ANP, 5 / ASIAPONSTR PT a *-+ a + * /na) an# on )u / * * /#*n * o u o()/=a+/on +o"CI ANP, 5 *+ *r on+ra +*# (* or*, #ur/n= or a +*r + * on +/+u+/on o [+ * a /=n;*n+ a=r**;*n+]

T a+ "CI ANP au+ or/

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2 Q ASIAPONSTR PT / =u/)+y o rau# /n on+ra +/n= + * #*(+, /n + * -*r or;an * + *r*o , or (o+ , BBB

. "CI ANP a=r**# +o *n+*r /n+o + * a(o * ;*n+/on*# r*#/+ a o;;o#a+/on -r/;ar/)y (* au * o + * *B/ +*n ** #**# o a /=n;*n+ )/ +*# a(o *. $o5* *r, ro; +*)*- on* /n@u/r/* ;a#* 5/+ r* -on /()* o / *r o + *

+/ona) "o5*r Cor-ora+/on, A "o5*r, In ., "NOC an# Or;a+ " /)/--/n* , In ., "CI ANP 5a ur-r/ *# +o )*arn+ ASIAPONSTR PT a# )on= a=o o))* +*# + * on+ra + -ro **# , or -or+/on + *r*o , 5 / 5*r* -r* /ou )y=n*# +o "CI ANP. $o5* *r, +o #a+*, /+ a y*+ +o +urn o *r + * * -ro **# +o "CI ANP. %or *, "CI ANPrn*# + a+ + * on+ra + -ro **# 5*r* u *# (y ASIAPONSTR PT or /+ o5n -ur-o * )*ar * /#*n * o rau#,

a #*-r/ *# "CI ANP o /+ * ur/+y. ASIAPONSTR PT? unau+ or/r. Na-o)*on Gar /a, &/ * "r* /#*n+ or !/nan * oAPONSTR PT, /n a +*)*- on* #/ u /on on 12 January 1999 5/+ > . >ar/ *) E. Sa)a *r/a o "CI ANP. BBB

*#)* +o ay, ASIAPONSTR PT a rau#u)*n+)y o))* +*# u r* */ a()* +o + * -r* u#/ * o "CI ANP.

Q /+ / * /#*n+ + a+ ASIAPONSTR PT n* *r a# any /n+*n+/on o o;-)y/n= 5/+ + * #**# o a /=n;*n+.APONSTR PT on)y ;/ )*# "CI ANP /n+o (*)/* /n= + a+ /+ a# u / /*n+ * ur/+y +o *n ur* -ay;*n+ o /+ )oan=a+/on .

A)+*rna+/ *)y, =ran+/n=, /n ar=u;*n+/ =ra+/a, + a+ ASIAPONSTR PT, a+ + * +/;* /+ *B* u+*# + * or*=o/n= #**# o=n;*n+, r*a))y /n+*n#*# +o a(/#* (y + */r +*r; an# on#/+/on , /+ n* *r+ *)* o;;/++*# ;an/ * + rau# 5 *n /+* +*# + * on+ra + -ro **# , an# /n +*a# o r*;/++/n= + *; +o "CI ANP, u *# + *; or /+ o5n -ur-o * .

an or#*r #a+*# A-r/) 13, 1999, + * +r/a) our+, a +*r r* */ /n= *B -ar+* "CI ANP? * /#*n * /n u--or+ o /+ -ray*r-r*)/;/nary a++a ;*n+, #/r* +*# + * / uan * o + * #* /r*# 5r/+, + u '

ERE!ORE, )*+ a 5r/+ o -r*)/;/nary a++a ;*n+ / u* a=a/n + a)) + * -ro-*r+y o #* *n#an+ no+ *B*;-+ ro;* u+/on or o ;u + *r*o a ;ay (* u / /*n+ +o a+/ y -)a/n+/ ? -r/n /-a) )a/; o SH , 3, 4.04,* *n+/n= + * a))*=*# un-a/# o()/=a+/on o #* *n#an+, /n )u / * o /n+*r* + an# -*na)+y ar=* , a o D* *;(*r 31,

8, 5 / / *@u/ a)*n+ +o "17 ,240,380.72, u-on -)a/n+/ ? /)/n= o a (on# /n an *@ua) a;oun+ +o an 5*r or a)) /+u +a/n (y r*a on o + * a++a ;*n+ / + * Cour+ a)) /na))y a# u#=* + a+ -)a/n+/ 5a no+ *n+/+)*# + *r*+o.

ORDERED.

+ -)a/n+/ "CI ANP a /n= -o +*# + * r*@u/ /+* (on#, a 5r/+ o -r*)/;/nary a++a ;*n+ 5a + *r*a +*r / u*# (y + *a) our+. "*r r* or# , #* *n#an+ AS IAPONSTR PT #/# no+ /)* any ;o+/on or + * @ua a) or #/ o)u+/on o + * 5r/+.

n5 /)*, on Au=u + 27, 1999, #* *n#an+ ASIAPONSTR PT /)*# /+ An 5*r, + *r*un#*r ;a:/n= a#;/ /on an#/a) . D* *n#an+ a#;/+ , u( * + +o /+ #* *n * , + * ;a+*r/a) a))*=a+/on o + * Co;-)a/n+ a r*=ar# /+*(+*#n* +o -)a/n+/ "CI ANP an# /+ *B* u+/on o + * ar/ou #**# o a /=n;*n+ *nu;*ra+*# + *r*/n. I+,* *r, #*n/* , or )a : o :no5)*#=* u / /*n+ +o or; a (*)/* a +o + * +ru+ + *r*o , + * a *r;*n+ /n + *-)a/n+ + a+ /+ a no+ -a/#, #* -/+* #*;an# , /+ #u* an# #*;an#a()* o()/=a+/on , a 5*)) a + * a;oun+ #u* + *n+/ a /+*;/

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*n+a+/on o * /#*n * /n a u)) ()o5n +r/a). E *n / on + */r a * + * -)*a#/n= a--*ar +o ra/ * / u* , 5 *n + *#a /+ , #*-o /+/on an# a#;/ /on o5 + a+ u / u* ar* no+ =*nu/n*, + *n u;;ary u#=;*n+ a -r* r/(*#+ * Ru)* ;u + *n u* a a ;a++*r o )a5. T * #*+*r;/na+/ * a +or, + *r* or*, /n a ;o+/on or u;;ary u#=;*n+, /-r* *n * or a( *n * o a =*nu/n* / u* a +o any ;a+*r/a) a +.

nu n --u / an / u* o a + 5 / r*@u/r* + * -r* *n+a+/on o * /#*n * a #/ +/n=u/ *# ro; a a;,/+/ou , on+r/ *# or a) * )a/; . % *n + * a + a -)*a#*# a--*ar un on+* +*# or un#/ -u+*#, + *n + *r* / no r*a)=*nu/n* / u* or @u* +/on a +o + * a + , an# u;;ary u#=;*n+ / a))*# or. T * -ar+y 5 o ;o * or u;;ary=;*n+ a + * (ur#*n o #*;on +ra+/n= )*ar)y + * a( *n * o any =*nu/n* / u* o a +, or + a+ + * / u* -o *# /n

o;-)a/n+ / -a+*n+)y un u( +an+/a) o a no+ +o on +/+u+* a =*nu/n* / u* or +r/a). Tr/a) our+ a * )/;/+*#or/+y +o r*n#*r u;;ary u#=;*n+ an# ;ay #o o on)y 5 *n + *r* / )*ar)y no =*nu/n* / u* a +o any ;a+*r/a)

. % *n + * a + a -)*a#*# (y + * -ar+/* ar* #/ -u+*# or on+* +*#, -ro **#/n= or u;;ary u#=;*n+ anno+* + * -)a * o +r/a). 13

CA, /n /+ a))*n=*# #* / /on, +a+*# an# 5* ar* /n u)) a or# 5/+ /+'

+ * -r* *n+ r* our *, + * [-*+/+/on*r] r*)/*# no+ on)y on + * u#/ /a) a#;/ /on Q /n /+ -)*a#/n= , ;or* -* / / a))yAn 5*r +o + * o;-)a/n+, + * +* +/;ony o >ar/ *) Sa)a *r/a a 5*)) a EB /(/+ A +o T 3 , a##u *# /n * /#*n *

+ * [r* -on#*n+], #ur/n= + * *ar/n= on /+ -)*a or + * / uan *, (y + * Cour+ a @uo, o a 5r/+ o -r*)/;/nary+a ;*n+. S/=n/ / an+)y, + * [-*+/+/on*r] #/# no+ (o+ *r /)/n= a ;o+/on or + * @ua a) o + * %r/+ / u*# (y + *ur+ a @uo.

u + (* (orn* /n ;/n#, +oo, + a+ + * [-*+/+/on*r] a#;/++*#, /n /+ An 5*r Q + * #u* *B* u+/on an# au+ *n+/ /+y o + *u;*n+ a--*n#*# +o + * o;-)a/n+ Q . T * [-*+/+/on*r] #/# no+ #*ny /+ )/a(/)/+y or + * -r/n /-a) a;oun+ )a/;*# (y[r* -on#*n+] /n /+ o;-)a/n+. T * [-*+/+/on*r] ;*r*)y a))*=*#, (y 5ay o #* *n * , + a+ /+ a/)*# +o -ay /+ a oun+* au * o + * r*=/on 5/#* * ono;/ r/ / + a+ *n=u) *# A /a, /n Ju)y, 1997, an# + * D**# o A /=n;*n+* u+*# (y /+ /n a or o + * [r* -on#*n+] 5*r* on+ra + o a# * /on'

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[-*+/+/on*r] *)a(ora+*# on an# a+a)o=u*# /+ #* *n * /n /+ A--*))an+ r/* 5 a+ /+ (*)/* *#, a =*nu/n** .

6/ % *+ *r or no+ [-*+/+/on*r] r* */ *# a)) or -ar+ o + * -ro **# Mr* */ a()* #u* ro; + * on +ru +/onon+ra + a+ + * +/;* + * / /) a +/on 5a /)*#

6// Gran+/n= + a+ [-*+/+/on*r] r* */ *# + * -ro **# Mr* */ a()* ro; + * on +ru +/on on+ra + , 5 *+ *r or no+[-*+/+/on*r] rau#u)*n+)y ;/ a--ro-r/a+*# + * a;*

6/// % *+ *r or no+ [-*+/+/on*r] a# (* o;* /r+ua))y /n o) *n+ a a r* u)+ o + * r*=/on 5/#* * ono;/ r/ / + a+/+ A /a, au /n= + * " /)/--/n* -* o +o #*-r* /a+* #ra;a+/ a))y an#

6/ % *+ *r or no+ [r* -on#*n+] an# [-*+/+/on*r] #*a)+ 5/+ *a o+ *r on *@ua) oo+/n= 5/+ r* -* + +o + **B* u+/on o + * #**# o a /=n;*n+ o r* */ a()* a +o =/ * [-*+/+/on*r] an on* + o--or+un/+y +o r* * + + *on*rou +*r; /;-o *# on /+.

* *r, + * [-*+/+/on*r] a/)*# +o a--*n#, +o /+ O--o /+/on +o + * >o+/on or Su;;ary Ju#=;*n+ , Q A /#a /+

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/n= + * a +ua) (a / or /+ #* *n * o *B+raor#/nary #* )a+/on, /n )u#/n= a + , /=ur* an# #a+a o5/n= /+n /a) on#/+/on (* or* an# a +*r + * * ono;/ r/ / an# + a+ + * r/ / 5a + * -roB/;a+* au * o /+ /nan /a)r* . I+ (*ar +r* /n= + a+ + * [-*+/+/on*r] 5a (ur#*n*# +o #*;on +ra+*, (y /+ A /#a /+ an# #o u;*n+ary*n *, + a+, /n#**#, + * " /)/--/n* 5a *n=u) *# /n an *B+raor#/nary #* )a+/on o + * " /)/--/n* "* o an# + a+ + *5a + * -roB/;a+* au * o + * /nan /a) #/ +r* , /+ )a/;*#, /+ u *r*#.

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r*, on + * (a / o + * r* or# , /n )u / * o + * -)*a#/n= o + * -ar+/* , an# + * +* +/;on/a) an# #o u;*n+ary*n * a##u *# (y + * [r* -on#*n+], u--or+/ * o /+ -)*a or a 5r/+ o -r*)/;/nary a++a ;*n+, + * [r* -on#*n+] a#* o a +/on a=a/n + + * [-*+/+/on*r], /+ (* oo *# + * [-*+/+/on*r] +o on+ro *r+ + * a;* 5/+#a /+ M#o u;*n+ary * /#*n * o5/n= a -r/;a a /* =*nu/n* #* *n *. A + * A--*))a+* Cour+ o I))/no/ o a-+)yar*#'

#* *n#an+ ;u + o5 + a+ * a a (ona /#* #* *n * +o + * a +/on, on* 5 / * ;ay (* a()* +o * +a()/ . I+ (* a -)au /()* =roun# o #* *n *, o;*+ /n= a/r)y ar=ua()* an# o a u( +an+/a) ara +*r. T / * ;u + o5

a /#a /+ or o+ *r -roo .

+r/a) our+, o our *, ;u + #*+*r;/n* ro; + * a /#a /+ /)*# 5 *+ *r + * #* *n#an+ a /n+*r-o *# a u / /*n+)yo# #* *n * +o *n+/+)* /+ +o #* *n#, (u+ 5 *r* #* *n#an+? a /#a /+ -r* *n+ no u( +an+/a) +r/a()* / u* o a +, + *r+ 5/)) =ran+ + * ;o+/on or u;;ary u#=;*n+.

BBB BBB BBB

a/)ur* o + * [-*+/+/on*r] +o a--*n# +o /+ O--o /+/on any A /#a /+ o5/n= + a+ /+ #* *n * 5*r* no++r/ *# or o ;*+/ +o #*)ay u#=;*n+ Q r*a+*# a -r* u;-+/on + a+ + * #* *n * o + * [-*+/+/on*r] 5*r* no+r*# /n =oo# a/+ an# + a+ + * a;* ou)# no+ (* u +a/n*# 6 n/+* S+a+* *r u !/*#)*r, *+ a)., !*#*ra) R*-or+*#,

, 78 .

n#**#, + * [-*+/+/on*r] (*)/* *# /+ + a+ 5a -r* *n+*# ro; o;-)y/n= 5/+ /+ o()/=a+/on +o + * [r* -on#*n+], un#*ron+ra + , /+ ou)# a * /n+*r-o *# a oun+*r )a/; or r* / /on o on+ra + , on or;a()y 5/+ + *

noun *;*n+ o our Su-r*;* Cour+, + u '

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[-*+/+/on*r] #/# no+. T / on)y *B-o *# + * (arr*nn* o + * -o * o + * [-*+/+/on*r].

[-*+/+/on*r] ;ay a * *B-*r/*n *# /nan /a) #/ / u)+/* (* au * o + * 1997 * ono;/ r/ / + a+ *n u*# /n A /a.* *r, + * a;* #o* no+ on +/+u+* a a)/# u +/ / a+/on or + * [-*+/+/on*r] +o r*n*=* on /+ o()/=a+/on +o + *-on#*n+]. T * [-*+/+/on*r] anno+ * *n /n# o)a * /n Ar+/ )* 1244 an# 1247 o + * N*5 C/ /) Co#* or, aar*# (y our Su-r*;* Cour+'

a un#a;*n+a) ru)* + a+ on+ra + , on * -*r * +*#, (/n# (o+ on+ra +/n= -ar+/* , an# o()/=a+/on ar/ /n= + *r* ro;+ * or * o )a5 (*+5**n + * -ar+/* an# ou)# (* o;-)/*# 5/+ /n =oo# a/+ . u+ + * )a5 r* o=n/

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/ a))y /;-o /()* 5/+ ou+ + * au)+ o + * o()/=or.?

/+/on*r anno+, o5* *r, u * u))y +a:* r* u=* /n + * a/# ar+/ )*, /n * /+ / a--)/ a()* on)y +o o()/=a+/on +o #o,no+ o()/=a+/on +o =/ *. An o()/=a+/on +o #o /n )u#* a)) :/n# o 5or: or *r / * 5 /)* an o()/=a+/on +o =/ * /

* +a+/on 5 / on / + /n + * #*)/ *ry o a ;o a()* or an /;;o a()* + /n= /n or#*r +o r*a+* a r*a) r/= +, or or + *o + * r* /-/*n+, or or /+ /;-)* -o * /on, or /n or#*r +o r*+urn /+ +o /+ o5n*r.

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+ / a *, -*+/+/on*r 5an+ + / Cour+ +o (*)/* * + a+ + * a(ru-+ an=* /n + * -o)/+/ a) )/;a+* o + * oun+ry a +*r + *SA R* o)u+/on an# /+ -oor /nan /a) on#/+/on r*n#*r*# + * -*r or;an * o + * )*a * on+ra + /;-ra +/ a) an#/ a) +o + * or-ora+* ur / a) o + * -*+/+/on*r. 6" /)/--/n* Na+/ona) Con +ru +/on Cor-ora+/on *r u Cour+ o*a) , *+ a)., 272 SCRA 183, a+ -a=* 191 192, u-ra

[-*+/+/on*r] * *n a/)*# +o a--*n# any A /#a /+ +o /+ O--o /+/on o5/n= o5 ;u /+ a# r* */ *# ro; /++ru +/on on+ra + an# o5 an# +o 5 o; + * a/# o))* +/on a# (**n a--*n#*#. T * [-*+/+/on*r] a# -*r ona)o)* :no5)*#=* o + * a or* a/# -ar+/ u)ar 5 /)* + * [r* -on#*n+] #/# no+.

/n*, 5* ru)* an# o o)# + a+ + * CA #/# no+ o;;/+ any r* *r /()* *rror /n a /r;/n= + * u;;ary u#=;*n+#*r*# (y + * +r/a) our+ a , a+ (o++o;, + *r* *B/ +*# no =*nu/n* / u* a +o any ;a+*r/a) a +. %* a) o u +a/n + *? r*#u +/on /n + * a5ar# o a++orn*y? ** +o on)y "1,000,000.00, =/ *n + * a + + a+ + *r* 5a no u)) ()o5n +r/a).

ERE!ORE, + * a a/)*# CA #* / /on / A!!IR>ED /n +o+o an# + / -*+/+/on / DENIED or )a : o ;*r/+.

+ a=a/n + -*+/+/on*r.

ORDERED.

N IO . GAR IAo /a+* Ju +/ *

CONC R'

6On )*a *RE+NATO S. #!NO A o /a+* Ju +/ *

C a/r-*r on

ANGELINA SAN%O&AL:G!TIERRE@ A o /a+* Ju +/ * RENATO . ORONA A o /a+* Ju +/ *

A%OL"O S. A@ !NA A o /a+* Ju +/ *

A T T E S T A T I O N

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++* + + a+ + * on )u /on /n + * a(o * #* / /on 5*r* r*a *# /n on u)+a+/on (* or* + * a * 5a a /=n*# +o + *+*r o + * o-/n/on o + * Cour+? D/ / /on.

NGELINA SAN%O&AL:G!TIERRE@

o /a+* Ju +/ */n= C a/r-*r on, S* on# D/ / /on

C E R T I ! I C A T I O N

uan+ +o Ar+/ )* &III, S* +/on 13 o + * Con +/+u+/on, an# + * D/ / /on C a/r-*r on A++* +a+/on, /+ / *r*(y *r+/ /*#+ + * on )u /on /n + * a(o * #* / /on 5*r* r*a *# /n on u)+a+/on (* or* + * a * 5a a /=n*# +o + * 5r/+*r oo-/n/on o + * Cour+.

RTE*IO &. #ANGANI/AN * Ju +/ *

o no -

1 "*nn*# (y + *n A o /a+* Ju +/ * Ro;*o J. Ca))* o, Sr. 6no5 a ;*;(*r o + / Cour+ , 5/+ A o /a+*Ju +/ * R*;*#/o J. Sa)a

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S!*/ING, J.:

-*+/+/on or r* /*5 **: +o r* *r * an# *+ a /#* + * % - on 1 #a+*# A-r/) 11, 2001 o + * Cour+ o A--*a) /nG.R. C& No. 7371 an# /+ R -o(u on 2 #a+*# Jun* 3, 2002 5 / #*n/*# + * ;o+/on or r* on /#*ra+/on.

a * or/=/na+*# ro; a Co;-)a/n+ or Su; o >on*y /)*# on O +o(*r 21, 1994, (* or* + * R*=/ona) Tr/a) Cour+ o/)a, ran 29, (y r* -on#*n+ E@u/+a()* an:/n= Cor-ora+/on 3 a=a/n + + * -*+/+/on*r , %oo# T* no)o=y-ora+/on 6%TC , C / T/; Cor#o a, an# Ro(*r+ T/on= P/n= oun=.

o (a n a))*=*# + a+ on D* *;(*r 9, 199 , %TC o(+a/n*# ro; r* -on#*n+ a )oan /n + * a;oun+ o7 ,000, 5/+ 8.7 /n+*r* + -*r annu;, a * /#*n *# (y a "ro;/ ory No+*, No. ! D9 00881, /=n*# (y#o a an# oun= a r*-r* *n+a+/ * o %TC. Cor#o a an# oun= *B* u+*# a Sur*+y A=r**;*n+ (/n#/n=*) * a ur*+/* o %TC or + * )oan. R* -on#*n+ (an: ;a#* a /na) #*;an# on A-r/) 19, 1994, or %TC +o/+ o()/=a+/on, (u+ -*+/+/on*r a/)*# +o -ay. R* -on#*n+ -ray*# + a+ -*+/+/on*r (* or#*r*# +o -ay /+ H7 ,403.4 or

018,417. 4 6 o;-u+*# a o O +o(*r 10, 199 -)u /n+*r* +, -*na)+y, a++orn*y? ** an# o+ *r *B-*n * o=a+/on an# + * o + o u/+.

+ */r An 5*r, -*+/+/on*r +a+*# + a+ %TC o(+a/n*# + * H7 ,000 )oan + a+ Cor#o a an# oun= (oun# + *; *) *+ ur*+/* . T *y )a/;*# + a+ on)y on* #*;an# )*++*r, #a+*# A-r/) 19, 1994, 5a ;a#* (y r* -on#*n+. T *y a##*#+ + * -ro;/ ory no+* #/# no+ -ro /#* + * #u* #a+* or -ay;*n+. "*+/+/on*r a) o )a/;*# + a+ + * )oan a# no+ y*+ur*# a + * ;a+ur/+y #a+* 5a -ur-o *)y )* + ()an:, +o (* a=r**# u-on (y + * -ar+/* a+ a )a+*r #a+*. S/n * nour/+y #a+* a# (**n /B*#, + * /)/n= o + * Co;-)a/n+ 5a -r*;a+ur*, an# /+ a/)*# +o +a+* a au * o a +/on. T *y+ *r )a/;*# + a+ + * -ro;/ ory no+* an# ur*+y a=r**;*n+ 5*r* on+ra + o a# * /on 5/+ +*r; on /n+*r* +,a)+y, ar=* an# a++orn*y? ** + a+ 5*r* *B * / *, un on /ona()* an# no+ r* )* +/ * o + * -ar+/* ? r*a) /n+*n+./+/on*r -ray*# or + * r* or;a+/on o + * -ro;/ ory no+* an# ur*+y a=r**;*n+ +o ;a:* + */r +*r; an##/+/on a/r, u + an# r*a ona()*. T *y a) o a :*# -ay;*n+ o #a;a=* (y r* -on#*n+.

>ay , 1997, r* -on#*n+ ;o *# or a u#=;*n+ on + * -)*a#/n= . T * RTC, ran 29 r*n#*r*# u#=;*n+ ao *# a o))o5 '

ERE!ORE, /n /*5 o + * or*=o/n=, an# +o a((r* /a+* + / a *, u#=;*n+ / *r*(y r*n#*r*# (a *# on + *a#/n=[ ] /)*# (y + * o--o /n= -ar+/* an# + * #o u;*n+ ann*B*# + *r*+o. T * #* *n#an+[ ] %oo# T* no)o=y-ora+/on, Ro(*r+ T/on= P/n= oun= an# C / T/; Cor#o a ar* *r*(y or#*r*# +o -ay o)/#ar/)y +o *r*/n -)a/n+/ + *o H7 ,000.00 or /+ *@u/ a)*n+ /n " /)/--/n* Curr*n y an# +o -ay + * +/-u)a+*# /n+*r* + o 8.7 -*r annu; +o (*on*# ro; + * #a+* + a+ + * o()/=a+/on 5a on+ra +*# un+/) + * /)/n= o + / u/+. T *r*a +*r, + * )*=a) ra+* a))y.

ORDERED.

/+/on*r a--*a)*#, (u+ + * Cour+ o A--*a) a /r;*# + * RTC? u#=;*n+. T * a--*))a+* our+ no+*# + a+/+/on*r a#;/++*# + * ;a+*r/a) a))*=a+/on o + * Co;-)a/n+, 5/+ + */r a#;/ /on o + * #u* *B* u+/on o + */ ory no+* an# ur*+y a=r**;*n+ a 5*)) a o + * /na) #*;an# ;a#* (y + * r* -on#*n+. T * a--*))a+* our+

*# + a+ + *r* 5a no n**# +o -r* *n+ * /#*n * +o -ro * + * ;a+ur/+y #a+* o + * -ro;/ ory no+*, /n * /+ 5aa()* on #*;an#. In a##/+/on, + * Cour+ o A--*a) *)# + a+ -*+/+/on*r a/)*# +o o5 any a;(/=u/+y /n + */ ory no+* an# ur*+y a=r**;*n+ /n u--or+ o + */r on+*n+/on + a+ + * * 5*r* on+ra + o a# * /on. !/na))y, /+

*# + a+ + * /n+*r* + ra+* on + * )oan 5a no+ *Bor(/+an+.

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a--*))a+* our+ a) o #*n/*# -*+/+/on*r ? ;o+/on or r* on /#*ra+/on.

r* u , -*+/+/on*r no5 ra/ * + * o))o5/n= / u* '

1. %$ET$ER OR NOT T$E ANS%ER O! "ETITIONERS %IT$ S"ECIAL AND A!!IR>ATI&E DE!ENSES!AILS TO TENDER AN ISS E OR AD>ITS T$E >ATERIAL ALLEGATIONS IN T$E CO>"LAINT SO ASTO J STI! T$E RENDITION O! J DG>ENT ON T$E "LEADINGS TRIAL CO RT

2. %$ET$ER OR NOT "ETITIONERS S$O LD $A&E EEN GI&EN T$E RIG$T TO "RESENT E&IDENCEON T$EIR S"ECIAL AND A!!IR>ATI&E DE!ENSES

3. %$ET$ER OR NOT T$E "RO>ISSOR NOTE IS A CONTRACT O! AD$ESION CONTAININGNREASONA LE CONDITIONS %$IC$ "ETITIONERS SIGNED %IT$O T REAL !REEDO> O! %ILL TOCONTRACT T$E O LIGATIONS T$EREIN AND

. %$ET$ER OR NOT T$E !ILING O! T$E CO>"LAINT %AS "RE>AT RE ANDMOR T$E CO>"LAINT!AIL[ED] TO STATE A CA SE O! ACTION.

)y -u+, + * (a / / u* / 5 *+ *r + * a--*))a+* our+ *rr*# 5 *n /+ a /r;*# + * RTC? u#=;*n+ on + * -)*a#/n=

/+/on*r ar=u* + a+ a u#=;*n+ on + * -)*a#/n= anno+ (* r*n#*r*# (* au * + */r An 5*r +*n#*r*# =*nu/n** an# #/ -u+*# + * ;a+*r/a) a))*=a+/on /n + * Co;-)a/n+. T *y )a/; + a+ + *y #/# no+ +o+a))y or un@ua)/ /*#)y+ a)) + * ;a+*r/a) a))*=a+/on /n + * Co;-)a/n+, an# + a+ + *y a# a))*=*# -* /a) an# a /r;a+/ * #* *n * . I + *y* =/ *n + * an *, + *y ou)# a * -r* *n+*# 5/+n* * +o -ro * + */r -* /a) an# a /r;a+/ * #* *n * . 4

/+ -ar+, r* -on#*n+ E@u/+a()* an:/n= Cor-ora+/on +a+* + a+ + * Cour+ o A--*a) 5a orr* + /n a /r;/n= + *=;*n+ on + * -)*a#/n= =ran+*# (y + * RTC. I+ a## + a+ -*+/+/on*r a# a#;/++*# + * ;a+*r/a) a))*=a+/on o + *

-)a/n+ an# + *y #/# no+ ra/ * =*nu/n* / u* o a + + a+ n* * /+a+* u(;/ /on o * /#*n *. I+ a) o on+*n# + a+-* /a) an# a /r;a+/ * #* *n * ra/ *# (y -*+/+/on*r on *rn + * -ro-*r /n+*r-r*+a+/on o + * -ro / /on o + */ ory no+* an# ur*+y a=r**;*n+. R* -on#*n+ a *r+ + a+ + * * #* *n * ;ay (* r* o) *# (a *# on + *

a#/n= an# + * a--)/ a()* )a5 an# ur/ -ru#*n *, 5/+ ou+ + * n**# +o -r* *n+ * /#*n *. 7 0a1phi0.n2t

+ * ou+ *+, 5* ;u + +r* + * Cour+? -o)/ y + a+ a * an# on+ro *r /* ou)# (* -ro;-+)y an# *B-*#/+/ou )y) *#. T * Ru)* o Cour+ **: +o or+*n + * -ro *#ur* /n or#*r +o a))o5 + * -**#y #/ -o /+/on o a a *./ / a))y, 5* a * ru)* on #*;urr*r +o * /#*n *, u#=;*n+ on + * -)*a#/n= , an# u;;ary u#=;*n+ . In a)) + * *an * , a u)) ()o5n +r/a) / #/ -*n *# 5/+ an# u#=;*n+ / r*n#*r*# on + * (a / o + * -)*a#/n= , u--or+/n=

#a /+ , #*-o /+/on an# a#;/ /on o + * -ar+/* . 8

+ / a *, a+ / u* / + * -ro-r/*+y an# a)/#/+y o a u#=;*n+ on + * -)*a#/n= . A u#=;*n+ on + * -)*a#/n= /*r 5 *n an an 5*r a/) +o +*n#*r an / u*, or o+ *r5/ * a#;/+ + * ;a+*r/a) a))*=a+/on o + * a# *r * -ar+y?

a#/n=. 9

+ * RTC an# Cour+ o A--*a) r* o=n/

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. . .

D* *n#an+ ra/ *# + * o))o5/n= $ 5 n- - '

a. T a+ + * on+ra + / on* o a# * /on an# + *y 5*r* or *# +o /=n + * a;*(. T a+ + * /n+*r* + [8.7 -*r annu;], -*na)+/* an# ** ar* un on /ona()*

. T a+ -)a/n+/ ? #*;an# / -r*;a+ur*. 10

. . .

our o5 A a(-6 %E ISION=

T *y n */+ *r ra/ * nu n --u - o a + n**#/n= u(;/ /on o * /#*n *. Ra+ *r, - --u - o/ + @u* +*rn/n= + * -ro-*r /n+*r-r*+a+/on o + * -ro / /on o + * -ro;/ ory no+* an# + * ur*+y a=r**;*n+Q 11 6E;- a)/*#.

/+/on*r a) o on+*n# + a+ + */r An 5*r (*)o5 ra/ *# / u* + a+ ar* *ry ;a+*r/a) an# nu n . 12 $*n *,r#/n= +o -*+/+/on*r , u#=;*n+ on + * -)*a#/n= 5a no+ -ro-*r. R* -on#*n+, on + * o+ *r an#, ar=u* + a+ + */a) an# a /r;a+/ * #* *n * ra/ *# (y "*+/+/on*r ar* no nu n / u* + a+ n**#*# a *ar/n=. 13

no+* no5 + a+ 61 + * RTC :n*5 + a+ + * An 5*r a *r+*# -* /a) an# a /r;a+/ * #* *n * 62 + * Cour+ o*a) r* o=n/

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C 5a no+ a u#=;*n+ on + * -)*a#/n= , (u+ a u;;ary u#=;*n+. A)+ ou= + * An 5*r a--ar*n+)y ra/ *# / u* , + * RTC an# + * Cour+ o A--*a) a +*r on /#*r/n= + * -ar+/* ? -)*a#/n= , -*+/+/on*r ? a#;/ /on an# + *

u;*n+ a++a *# +o + * Co;-)a/n+, oun# + a+ + * / u* ar* no+ a +ua) on* r*@u/r/n= +r/a), nor 5*r* + *y =*nu/n** . 04vvphi0.n2t

;ary u#=;*n+ 17 / a -ro *#ur* a/;*# a+ 5**#/n= ou+ a; )a/; or #* *n * a+ an *ar)y +a=* o + * )/+/=a+/on.-ro-*r /n@u/ry /n + / r*=ar# 5ou)# (* 5 *+ *r + * a /r;a+/ * #* *n * o *r*# (y -*+/+/on*r on +/+u+* =*nu/n*

* o a + r*@u/r/n= a u)) ()o5n +r/a). 18 In a u;;ary u#=;*n+, + * ru /a) @u* +/on / ' ar* + * / u* ra/ *# (y/+/on*r no+ =*nu/n* o a +o u +/ y a u;;ary u#=;*n+U 19 A =*nu/n* / u* ;*an an / u* o a + 5 / a))+ * -r* *n+a+/on o * /#*n *, a #/ +/n=u/ *# ro; an / u* 5 / / / +/+/ou or on+r/ *#, an / u* + a+ #o* no++/+u+* a =*nu/n* / u* or +r/a). 20

no+* + a+ + / / a a * or a u; o ;on*y, an# -*+/+/on*r a * a#;/++*# + a+ + *y o(+a/n*# + * )oan. T *y a) o++*# + * #u* *B* u+/on o + * )oan #o u;*n+ an# + */r r* */-+ o + * /na) #*;an# )*++*r ;a#* (y + *on#*n+. T * * #o u;*n+ 5*r* a)) a++a *# +o + * Co;-)a/n+. "*+/+/on*r ;*r*)y )a/;*# + a+ + * o()/=a+/on a

+ ;a+ur*#. No+a()y, (a *# on + * -ro;/ ory no+*, + * RTC an# + * Cour+ o A--*a) oun# + / #* *n * no+ aua) / u* or +r/a), + * )oan (*/n= -aya()* on #*;an#. %* ar* (oun# (y + / a +ua) /n#/n=. T / Cour+ / no+ a +r/*ra + .

n r* -on#*n+ ;a#* /+ #*;an#, /n our /*5, + * o()/=a+/on ;a+ur*#. %* a=r** 5/+ (o+ + * +r/a) an# + **))a+* our+ + a+ + / ;a++*r -ro *rr*# a a #* *n * ou)# (* r* o) *# u#/ /ou )y (y -)a/n r* or+ +o + * +/-u)a+/on+ * -ro;/ ory no+* 5 / 5a a)r*a#y (* or* + * +r/a) our+. A u)) ()o5n +r/a) +o #*+*r;/n* + * #a+* o ;a+ur/+y o)oan / no+ n* * ary. A) o, + * a + o )*a /n= ()an: + * ;a+ur/+y #a+* o + * )oan #/# no+ n* * ar/)y ;*an + a+ + *

+/* a=r**# +o /B /+ )a+*r. I + / 5a + * /n+*n+/on o + * -ar+/* , + *y ou)# a * o /n#/ a+*# /n + * -ro;/ ory+*.l5vvphi0.net T *y #/# no+ o5 u /n+*n+/on. l5vvphi0.net

/+/on*r )/:*5/ * /n / + + a+ + */r #* *n * +*n#*r*# a =*nu/n* / u* 5 *n + *y )a/;*# + a+ + * )oan #o u;*n+

+/+u+*# a on+ra + o a# * /on. S/=n/ / an+)y, (o+ + * +r/a) an# a--*))a+* our+ a * a)r*a#y -a *# u-on + /+*n+/on an# -ro-*r)y ru)*# + a+ /+ 5a no+ a a +ua) / u* or +r/a). %* a=r** 5/+ + */r ru)/n= + a+ + *r* / no n**# oa) +o r* o) * + / -ar+/ u)ar )/n* o #* *n *. A)) + a+ / n**#*# / a ar* u) -*ru a) o + * )oan #o u;*n+ . A *)# (yCour+ o A--*a) , -*+/+/on*r a/)*# +o o5 any a;(/=u/+y /n + * )oan #o u;*n+ . T * ru)* / + a+, ou)# + *r* (*=u/+/* /n a on+ra + o a# * /on, u a;(/=u/+/* ar* +o (* on +ru*# a=a/n + + * -ar+y + a+ -r*-ar*# /+.* *r, / + * +/-u)a+/on ar* )*ar an# )*a * no #ou(+ on + * /n+*n+/on o + * -ar+/* , + * )/+*ra) ;*an/n= o /+u)a+/on ;u + (* *)# on+ro))/n=. 21

u;, 5* /n# no au * +o #/ +ur( + * /n#/n= o a + o + * Cour+ o A--*a) , a /r;/n= + o * o + * RTC a +o + *ona()*n* o + * /n+*r* + ra+* o 8.7 -*r annu; on + * )oan. %* a) o /n# no -*r ua / * r*a on +o on+ra#/ +ru)/n= o (o+ our+ + a+ + * )oan * ur*# (y -*+/+/on*r %TC, 5/+ o -*+/+/on*r a ur*+/* , 5a -aya()* on

an#. C*r+a/n)y, r* -on#*n+? o;-)a/n+ ou)# no+ (* on /#*r*# -r*;a+ur*. Nor ou)# /+ (* a/# +o (* 5/+ ou+/*n+ au * o a +/on + *r*/n *+ or+ . T * u#=;*n+ r*n#*r*# (y + * +r/a) our+ / a)/# a a u;;ary u#=;*n+,/+ a /r;an * (y + * Cour+ o A--*a) , a *r*/n )ar/ /*#, / /n or#*r.

HERE"ORE, + * "*+/+/on / DENIED or )a : o ;*r/+.

ORDERED.

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2. ID. CI&IL "ROCED RE S >>AR J DG>ENTS "RESENCE OR A SENCE O! AN GEN INE ISS E AS TO AN >ATERIAL !ACT T$AT%O LD REK IRE T$E "RESENTATION O! E&IDENCE CONTROLLING!ACTOR IN DETER>INING %$ET$ER A S >>AR J DG>ENTS$O LD ISS E. T * Cour+ o A--*a) orr* +)y ru)*# + a+ + * on+ro))/n=

a +or /n a ;o+/on or u;;ary u#=;*n+ / no+ + * u(;/ /on or nonu(;/ /on o oun+*r a /#a /+ , (u+ + * -r* *n * or a( *n * o any =*nu/n*/ u* a +o any ;a+*r/a) a + + a+ 5ou)# r*@u/r* + * -r* *n+a+/on o * /#*n *.% *r* + * a + -)*a#*# (y + * -ar+/* ar* #/ -u+*# or on+* +*#,-ro **#/n= or u;;ary u#=;*n+ an no+ +a:* + * -)a * o +r/a).

A##EARAN ES O" O!NSEL

%amon A. +onzales for petitioners.M.%. *amaran 6 Associates for private respondent.

% E I S I O N"RAN IS O, J .=

In + / -*+/+/on or r* /*5 on *r+/orar/, -*+/+/on*r -ou * Ca;/)o an# D*)/aGo, + rou= oun *), -o *# + / @u*ry' F>ay r* -on#*n+ our+ (* o;-*))*# (y;an#a;u +o =ran+ + * ;o+/on or u;;ary u#=;*n+ 5 *n + *r* / no =*nu/n*/ u* a +o a ;a+*r/a) a + ra/ *# /n + * o--o /+/on + *r*+oU 1 T * an+* *#*n+a + ar* a o))o5 '

To * ur* a )oan o "93,200.00 5/+ 1 /n+*r* + -Ma, -*+/+/on*r on Jun* 1 ,1978, on +/+u+*# a r*a) * +a+* ;or+=a=* o *r + */r ou * an# )o+ o *r*# (yTCT No. 30 32 o + * R*=/ +ry o D**# o "a ay C/+y /n a or o *r*/n -r/ a+*

r* -on#*n+ >anu*)a R*a)+y D* *)o-;*n+ Cor-ora+/on 6>anu*)a . !or a))*=*#-*+/+/on*r ? a/)ur* +o **# >anu*)a? r*-*a+*# #*;an# or -ay;*n+ o + * )oan,>anu*)a ;o *# or + * *B+ra u#/ /a) or* )o ur* o + * u( * + -ro-*r+/*-ur uan+ +o a -ro / /on /n + * #**# o ;or+=a=*. T * *B o / /o *r/ o >a:a+/C/+y on#u +*# a -u()/ au +/on a)* on S*-+*;(*r 9, 1989, 5 *r* >anu*)au(;/++*# + * )on* an# 5/nn/n= (/# o "2 1,1 1.7 , -*+/+/on*r ? a))*=*#

ou+ +an#/n= #*(+ a+ + * +/;*. A +*r + * *B-/ra+/on o + * r*#*;-+/on -*r/o#,>anu*)a /)*# /+ a /#a /+ o on o)/#a+/on o o5n*r /- (* or* + * R*=/ +*r oD**# . T u , o5n*r /- o + * ;or+=a=*# -ro-*r+/* 5a on o)/#a+*# /n>anu*)a an# a n*5 Tran *r C*r+/ / a+* o T/+)* 6TCT No. T 188 5a + *r*a +*r/ u*# /n /+ na;*.

"*+/+/on*r /)*# on Au=u + 21, 1989, an# )a+*r a;*n#*# on No *;(*r 20,1989, a o;-)a/n+ or r* o *ry o o5n*r /- o + * u( * + -ro-*r+/* a=a/n +>anu*)a (* or* + * R*=/ona) Tr/a) Cour+ o >a:a+/ C/+y, ran 134, #o :*+*# aC/ /) Ca * No. 89 839. T *y a))*=*# -ay;*n+ o / * un#r*# #o))ar (7899) +o>anu*)a o;*+/;* /n 1982 (y ;on*y +ran *r or#*r + rou= S* ur/+y "a / /Na+/ona) an:, an# -ay;*n+ o + * *n+/r* )oan a a)) + */r /n +a));*n+ -ay;*n+ , /a##*#, 5/)) a;oun+ +o "9 , 9 4.47