Corpo Cases Section 6 - 15

7/24/2019 Corpo Cases Section 6 - 15

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INTERNATIONAL TRAVEL EXPRESS & TOURS INC. VS. CA, 343 SCRA 674

FIRST DIVISION

[G.R. No. 119002. October 19, 2000]

INTERNATIONAL EXPRESS TRAVEL & TOUR SERVICES, INC., et!t!o"er, #$. %ON. COURT O

APPEALS, %ENRI 'A%N, P%ILIPPINE OOT(ALL E)ERATION, re$o"*e"t$.

) E C I S I O N

'APUNAN, +.

On June 30 1989, petitioner International Express Travel an Tour Servi!es, In!", t#rou$# its %ana$in$

ire!tor, &rote a letter to t#e '#ilippine Foot(all Feeration )Feeration*, t#rou$# its presient private

responent +enri a#n, erein t#e -or%er o--ere its servi!es as a travel a$en!. to t#e latter"iT#e o--er

&as a!!epte"

'etitioner se!ure t#e airline ti!/ets -or t#e trips o- t#e at#letes an o--i!ials o- t#e Feeration to t#e Sout#

East sian a%es in uala 2u%pur as &ell as various ot#er trips to t#e 'eoples Repu(li! o- 4#ina an

5ris(ane" T#e total !ost o- t#e ti!/ets a%ounte to '669,76"83" For t#e ti!/ets re!eive, t#e Feeration

%ae t&o partial pa.%ents, (ot# in Septe%(er o- 1989, in t#e total a%ount o- '17,67"0" ii

On 6 O!to(er 1989, petitioner &rote t#e Feeration, t#rou$# t#e private responent a e%an letterre:uestin$ -or t#e a%ount o- ';7,896"33" iiiOn 30 O!to(er 1989, t#e Feeration, t#rou$# t#e 'ro


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voluntar. unin!orporate asso!iation, li/e e-enant Feeration #as no po&er to enter into, or to rati-.,

a !ontra!t" T#e !ontra!t entere into (. its o--i!ers or a$ents on (e#al- o- su!# asso!iation is not (inin$

on, or en-or!ea(le a$ainst it" T#e o--i!ers or a$ents are t#e%selves personall. lia(le"

x x xix

T#e ispositive portion o- t#e trial !ourts e!ision reas@

>+EREFORE, IT+ T+E '+I2I''INE FOOT522 FEDERTION )'FF* S 4OR'ORTE ENTIT ND IN NOT

+O2DIN T+T 'RIVTE RES'ONDENT +ENRI +N >S T+E ONE >+O RE'RESENTED T+E

'FF S +VIN 4OR'ORTE 'ERSON2IT"

5" T+E +ONOR52E 4OCRT OF ''E2S ERRED IN NOT +O2DIN 'RIVTE RES'ONDENT

+ENRI +N 'ERSON22 2I52E FOR T+E O52ITION OF T+E CNIN4OR'ORTED 'FF,

+VIN NEOTITED >IT+ 'ETITIONER ND 4ONTR4TED T+E O52ITION IN 5E+2F OF

T+E 'FF, =DE 'RTI2 '=ENT ND SSCRED 'ETITIONER OF FC22 SETT2IN T+EO52ITION"

4" SSC=IN RCENDO T+T 'RIVTE RES'ONDENT +N IS NOT 'ERSON22 2I52E, T+E

+ONOR52E 4OCRT OF ''E2S ERRED IN NOT E'RESS2 DE42RIN IN ITS DE4ISION

T+T T+E 'FF IS SO2E2 2I52E FOR T+E O52ITION"

T#e resolution o- t#e !ase at (ar #in$es on t#e eter%ination o- t#e existen!e o- t#e '#ilippine Foot(all

Feeration as a


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4#arter o- t#e '#ilippine %ateur t#leti! Feeration, an 'resiential De!ree No" 706 as t#e la&s -ro%

i!# sai Feeration erives its existen!e"

s !orre!tl. o(serve (. t#e appellate !ourt, (ot# R"" 313 an '"D" No" 706 re!o$ni?e t#e e !annot a$ree &it# t#e vie& o- t#e

appellate !ourt an t#e private responent t#at t#e '#ilippine Foot(all Feeration !a%e into existen!eupon t#e passa$e o- t#ese la&s" Noere !an it (e -oun in R"" 313 or '"D" 706 an. provision !reatin$

t#e '#ilippine Foot(all Feeration" T#ese la&s %erel. re!o$ni?e t#e existen!e o- national sports

asso!iations an provie t#e %anner (. i!# t#ese entities %a. a!:uire


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(e -ile &it# t#e exe!utive !o%%ittee to$et#er &it#, a%on$ ot#ers, a !op. o- t#e !onstitution an (.la&s

an a list o- t#e %e%(ers o- t#e propose asso!iation, an a -ilin$ -ee o- ten pesos"

T#e Exe!utive 4o%%ittee s#all $ive t#e re!o$nition applie -or i- it is satis-ie t#at sai asso!iation &ill

pro%ote t#e purposes o- t#is !t an parti!ularl. se!tion t#ree t#ereo-" No appli!ation s#all (e #el

penin$ -or %ore t#an t#ree %ont#s a-ter t#e -ilin$ t#ereo- &it#out an. a!tion #avin$ (een ta/en t#ereon

(. t#e exe!utive !o%%ittee" S#oul t#e appli!ation (e ree !annot su(s!ri(e to t#e position ta/en (.

t#e appellate !ourt t#at even assu%in$ t#at t#e Feeration &as e-e!tivel. in!orporate, t#e petitioner

!annot en. t#e !orporate existen!e o- t#e Feeration (e!ause it #a !ontra!te an ealt &it# t#e

Feeration in su!# a %anner as to re!o$ni?e an in e--e!t a%it its existen!e"xvT#e o!trine o-

!orporation (. estoppel is %ista/enl. applie (. t#e responent !ourt to t#e petitioner" T#e appli!ation o-

t#e o!trine applies to a t#ir part. onl. en #e tries to es!ape lia(ilit. on a !ontra!t -ro% i!# #e #as

(ene-ite on t#e irrelevant $roun o- e-e!tive in!orporation"xviIn t#e !ase at (ar, t#e petitioner is not

tr.in$ to es!ape lia(ilit. -ro% t#e !ontra!t (ut rat#er is t#e one !lai%in$ -ro% t#e !ontra!t"


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-%EREORE, t#e e!ision appeale -ro% is REVERSEDan SET SIDE" T#e e!ision o- t#e Re$ional

Trial 4ourt o- =anila, 5ran!# 3, in 4ivil 4ase No" 9039 is #ere(. REINSTTED"

SO OR)ERE).

Davie, Jr", 4"J", )4#air%an*, 'uno, 'aro, an naresSantia$o, JJ", !on!ur

2. LIM TONG LIM VS. PHIL. FISHING GEAR INDUSTRIES, INC., 317 SCRA728

T+IRD DIVISION

[G.R. No. 1/. No#eber , 1999]

LI3 TONG LI3, et!t!o"er, #$. P%ILIPPINE IS%ING GEAR IN)USTRIES, INC., re$o"*e"t.

) E C I S I O N

PANGANI(AN, +.

partners#ip %a. (e ee%e to exist a%on$ parties o a$ree to (orro& %one. to pursue a (usiness

an to ivie t#e pro-its or losses t#at %a. arise t#ere-ro%, even i- it is s#o&n t#at t#e. #ave not

!ontri(ute an. !apital o- t#eir o&n to a A!o%%on -un"A T#eir !ontri(ution %a. (e in t#e -or% o- !reit or

inustr., not ne!essaril. !as# or -ixe assets" 5ein$ partners, t#e. are all lia(le -or e(ts in!urre (. or

on (e#al- o- t#e partners#ip" T#e lia(ilit. -or a !ontra!t entere into on (e#al- o- an unin!orporate

asso!iation or ostensi(le !orporation %a. lie in a person o %a. not #ave ire!tl. transa!te on its(e#al-, (ut reape (ene-its -ro% t#at !ontra!t"T4e C5$e

In t#e 'etition -or Revie& on 4ertiorari (e-ore us, 2i% Ton$ 2i% assails t#e Nove%(er ;7, 1998 De!ision

o- t#e 4ourt o- ppeals in 4R 4V 616,xviii!# ispose as -ollo&s@

>+EREFORE, Gt#ere (ein$H no reversi(le error in t#e appeale e!ision, t#e sa%e is #ere(. a--ir%e"xviii

T#e e!retal portion o- t#e ue?on 4it. Re$ional Trial 4ourt )RT4* rulin$, i!# &as a--ir%e (. t#e 4,

reas as -ollo&s@

>+EREFORE, t#e 4ourt rules@

1" T#at plainti-- is entitle to t#e &rit o- preli%inar. atta!#%ent issue (. t#is 4ourt on Septe%(er ;0,

1990B

;" T#at e-enants are it# respe!t to t#e


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$uarant. -or an. rit o- 'reli%inar. tta!#%ent, i!# t#e s#eri-- en-or!e (. atta!#in$ t#e -is#in$ nets on (oar

FK5 2oures i!# &as t#en o!/e at t#e Fis#eries 'ort, Navotas, =etro =anila"Instea o- ans&erin$ t#e 4o%plaint, 4#ua -ile a =ani-estation a%ittin$ #is lia(ilit. an re:uestin$ a

reasona(le ti%e &it#in i!# to pa." +e also turne over to responent so%e o- t#e nets i!# &ere in

#is possession" 'eter ao -ile an ns&er, a-ter i!# #e &as ee%e to #ave &aive #is ri$#t to !ross

exa%ine &itnesses an to present evien!e on #is (e#al-, (e!ause o- #is -ailure to appear in su(se:uent

#earin$s" 2i% Ton$ 2i%, on t#e ot#er #an, -ile an ns&er &it# 4ounter!lai% an 4ross!lai% an %ove

-or t#e li-tin$ o- t#e >rit o- tta!#%ent"xxiiT#e trial !ourt %aintaine t#e >rit, an upon %otion o- private

responent, orere t#e sale o- t#e -is#in$ nets at a pu(li! au!tion" '#ilippine Fis#in$ ear Inustries

&on t#e (iin$ an eposite &it# t#e sai !ourt t#e sales pro!ees o- '900,000"xxiii

On Nove%(er 18, 199;, t#e trial !ourt renere its De!ision, rulin$ t#at '#ilippine Fis#in$ ear Inustries

&as entitle to t#e >rit o- tta!#%ent an t#at 4#ua, ao an 2i%, as $eneral partners, &ere


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(* I- t#e -our )6* vesselGsH an t#e -is#in$ net &ill (e sol at a #i$#er pri!e t#an ',0,000"00

atever &ill (e t#e ex!ess &ill (e ivie into 3@ 1K3 2i% Ton$ 2i%B 1K3 ntonio 4#uaB 1K3 'eter aoB

!* I- t#e pro!ees o- t#e sale t#e vessels &ill (e less t#an ',0,000"00 atever t#e e-i!ien!.

s#all (e s#oulere an pai to J2 +olin$ 4orporation (. 1K3 2i% Ton$ 2i%B 1K3 ntonio 4#uaB 1K3 'eter

ao"xxvii

T#e trial !ourt note t#at t#e 4o%pro%ise $ree%ent &as silent as to t#e nature o- t#eir o(li$ations, (ut

t#at S ON2 4+C >+O RE'RESENTED T+T +E >S 4TIN FOR O4EN

CEST FIS+IN 4OR'ORTION >+EN +E 5OC+T T+E NETS FRO= '+I2I''INE FIS+IN, T+E

4OCRT OF ''E2S >S CNJCSTIFIED IN I='CTIN 2I5I2IT TO 'ETITIONER 2I= S >E22"

III T+E TRI2 4OCRT I='RO'ER2 ORDERED T+E SEIMCRE ND TT4+=ENT OF

'ETITIONER 2I=S OODS"In eter%inin$ et#er petitioner %a. (e #el lia(le -or t#e -is#in$ nets an -loats pur!#ase -ro%

responent, t#e 4ourt %ust resolve t#is /e. issue@ et#er (. t#eir a!ts, 2i%, 4#ua an ao !oul (e

ee%e to #ave entere into a partners#ip"T4!$ Co6rt$ R67!"8

T#e 'etition is evoi o- %erit"!r$t 5"* Seco"* I$$6e$ E!$te"ce o: 5 P5rt"er$4! 5"* Pet!t!o"er;$ L!5b!7!te are not persuae (. t#e ar$u%ents o- petitioner" T#e -a!ts as -oun (. t#e t&o lo&er !ourts !learl.

s#o&e t#at t#ere existe a partners#ip a%on$ 4#ua, ao an #i%, pursuant to rti!le 17 o- t#e 4ivil

4oe i!# provies@


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rti!le 17 5. t#e !ontra!t o- partners#ip, t&o or %ore persons (in t#e%selves to !ontri(ute %one.,

propert., or inustr. to a !o%%on -un, &it# t#e intention o- iviin$ t#e pro-its a%on$ t#e%selves"

Spe!i-i!all., (ot# lo&er !ourts rule t#at a partners#ip a%on$ t#e t#ree existe (ase on t#e -ollo&in$

-a!tual -inin$s@xxxi

)1* T#at 'etitioner 2i% Ton$ 2i% re:ueste 'eter ao o &as en$a$e in !o%%er!ial -is#in$ to e stress t#at uner Rule 6, a petition -or revie& li/e t#e present !ase s#oul involve onl. :uestions o-

la&" T#us, t#e -ore$oin$ -a!tual -inin$s o- t#e RT4 an t#e 4 are (inin$ on t#is 4ourt, a(sent an.

!o$ent proo- t#at t#e present a!tion is e%(ra!e (. one o- t#e ex!eptions to t#e rule" xxxiiIn assailin$ t#e

-a!tual -inin$s o- t#e t&o lo&er !ourts, petitioner e--e!tivel. $oes (e.on t#e (ouns o- a petition -or

revie& uner Rule 6"


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Coro!$e A8reee"t Not t4e So7e (5$!$ o: P5rt"er$4!

'etitioner ar$ues t#at t#e appellate !ourts sole (asis -or assu%in$ t#e existen!e o- a partners#ip &as t#e

4o%pro%ise $ree%ent" +e also !lai%s t#at t#e settle%ent &as entere into onl. to en t#e ispute

a%on$ t#e%, (ut not to a


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su(rit o- tta!#%ent &as i%properl. issue a$ainst t#e nets" >e a$ree

&it# t#e 4ourt o- ppeals t#at t#is issue is no& %oot an a!ae%i!" s previousl. is!usse, FK5 2oures

&as an asset o- t#e partners#ip an t#at it &as pla!e in t#e na%e o- petitioner, onl. to assure pa.%ent o-t#e e(t #e an #is partners o&e" T#e nets an t#e -loats &ere spe!i-i!all. %anu-a!ture an tailor

%ae a!!orin$ to t#eir o&n esi$n, an &ere (ou$#t an use in t#e -is#in$ venture t#e. a$ree upon"

+en!e, t#e issuan!e o- t#e >rit to assure t#e pa.%ent o- t#e pri!e stipulate in t#e invoi!es is proper"

5esies, (. spe!i-i! a$ree%ent, o&ners#ip o- t#e nets re%aine &it# Responent '#ilippine Fis#in$

ear, until -ull pa.%ent t#ereo-"

-%EREORE, t#e 'etition is DENIED an t#e assaile De!ision FFIR=ED" 4osts a$ainst petitioner"

SO OR)ERE).


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3. LOZANO VS. DE LOS SANTOS, 273 SCRA 42

SE4OND DIVISION

[G.R. No. 12=221. +6"e 19, 199>]

RE?NAL)O 3. LO@ANO, et!t!o"er, #$. %ON. ELIE@ER R. )E LOS SANTOS, Pre$!*!"8 +6*8e, RTC,

(r. =, A"8e7e$ C!t


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)(* 4ontroversies arisin$ out o- intra!orporate or partners#ip relations, (et&een an a%on$ sto!/#olers,

%e%(ers or asso!iatesB (et&een an. or all o- t#e% an t#e !orporation, partners#ip or asso!iation o-

i!# t#e. are sto!/#olers, %e%(ers, or asso!iates, respe!tivel.B an (et&een su!# !orporation,

partners#ip or asso!iation an t#e state inso-ar as it !on!erns t#eir iniviual -ran!#ise or ri$#t to exist as

su!# entit."

)!* 4ontroversies in t#e ele!tion or appoint%ent o- ire!tors, trustees, o--i!ers or %ana$ers o- su!#

!orporations, partners#ips or asso!iations"

)* 'etitions o- !orporations, partners#ips or asso!iations to (e e!lare in t#e state o- suspension o-

pa.%ents in !ases ere t#e !orporation, partners#ip or asso!iation possesses su--i!ient propert. to

!over all its e(ts (ut -oresees t#e i%possi(ilit. o- %eetin$ t#e% en t#e. respe!t ver. -all ue or in

!ases ere t#e !orporation, partners#ip or asso!iation #as no su--i!ient assets to !over its lia(ilities, (ut

is uner t#e %ana$e%ent o- a Re#a(ilitation Re!eiver or =ana$e%ent 4o%%ittee !reate pursuant to

t#is De!ree"A

T#e $rant o- #en t#e SE4, upon pro!essin$ an exa%inin$ t#e arti!les o- !onsoliation,

is satis-ie t#at t#e !onsoliation o- t#e !orporations is not in!onsistent &it# t#e provisions o- t#e

4orporation 4oe an existin$ la&s, it issues a !erti-i!ate o- !onsoliation i!# %a/es t#e

reor$ani?ation o--i!ial"xlixT#e ne& !onsoliate !orporation !o%es into existen!e an t#e !onstituent

!orporations issolve an !ease to exist" l

T#e =JD an S=JOD to i!# petitioner an private responent (elon$ are ul. re$istere

&it# t#e SE4, (ut t#ese asso!iations are t&o separate entities" T#e ispute (et&een petitioner an

private responent is not &it#in t#e =JD nor t#e S=JOD" It is (et&een %e%(ers o- separate

an istin!t asso!iations" 'etitioner an private responent #ave no intra!orporate relation %u!# less ot#e. #ave an intra!orporate ispute" T#e SE4 t#ere-ore #as no #ere t#ere is no t#ir person involve an t#e !on-li!t


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arises onl. a%on$ t#ose assu%in$ t#e -or% o- a !orporation, o t#ere-ore /no& t#at it #as not (een

re$istere, t#ere is no !orporation (. estoppel"lv

IN VIE- -%EREO, t#e petition is $rante an t#e e!ision ate pril 18, 1997 an t#e orer ate

=a. 31, 1997 o- t#e Re$ional Trial 4ourt, 5ran!# 8, n$eles 4it. are set asie" T#e =uni!ipal 4ir!uit

Trial 4ourt o- =a(ala!at an =a$alan$, 'a%pan$a is orere to pro!ee &it# ispat!# in resolvin$ 4ivil

4ase No" 1;16" No !osts"

SO OR)ERE).

4. L!CEUM OF THE PHILIPPINES, INC. VS CA, G.R. N". 1#18$7. M%'( , 1$$3

Repu(li! o- t#e '#ilippines

SUPRE3E COURT

=anila

T+IRD DIVISION

G.R. No. 1019>. 35rc4 =, 199.

24EC= OF T+E '+I2I''INES, IN4", petitioner, vs" 4OCRT OF ''E2S, 24EC= OF 'RRI,24EC= OF 45N, 24EC= OF 4=2NICN, IN4", 24EC= OF 222O, IN4", 24EC= OF

TCO, IN4", 5C+I 24EC=, 4ENTR2 24EC= OF 4TNDCNES, 24EC= OF SOCT+ERN

'+I2I''INES, 24EC= OF ESTERN =INDNO, IN4" an >ESTERN 'NSINN 24EC=,

IN4", responents"

uisu%(in$, Torres L Evan$elista 2a& O--i!es an %(rosio 'ailla -or petitioner"

ntonio =" Nu.les an 'urun$an, 4#ato, 4#ato, Tarriela L Tan 2a& O--i!es -or responents"

Froilan Sio(al -or >estern 'an$asinan 2.!eu%"

S225CS

1" 4OR'ORTION 2>B 4OR'ORTE N=ESB REISTRTION OF 'RO'OSED N=E >+I4+ IS

IDENTI42 OR 4ONFCSIN2 SI=I2R TO T+T OF N EISTIN 4OR'ORTION, 'RO+I5ITEDB

4ONFCSION ND DE4E'TION EFFE4TIVE2 'RE42CDED 5 T+E ''ENDIN OF EOR'+I4

N=ES TO T+E >ORD A24EC=A" T#e rti!les o- In!orporation o- a !orporation %ust, a%on$ ot#ert#in$s, set out t#e na%e o- t#e !orporation" Se!tion 18 o- t#e 4orporation 4oe esta(lis#es a restri!tive

rule inso-ar as !orporate na%es are !on!erne@ ASe!tion 18" 4orporate na%e" No !orporate na%e %a.

(e allo&e (. t#e Se!urities an Ex!#an$e 4o%%ission i- t#e propose na%e is ienti!al or e!eptivel. or

!on-usin$l. si%ilar to t#at o- an. existin$ !orporation or to an. ot#er na%e alrea. prote!te (. la& or is

patentl. e!eptive, !on-usin$ or !ontrar. to existin$ la&s" >#en a !#an$e in t#e !orporate na%e is

approve, t#e 4o%%ission s#all issue an a%ene !erti-i!ate o- in!orporation uner t#e a%ene na%e"A

T#e poli!. unerl.in$ t#e pro#i(ition in Se!tion 18 a$ainst t#e re$istration o- a !orporate na%e i!# is

Aienti!al or e!eptivel. or !on-usin$l. si%ilarA to t#at o- an. existin$ !orporation or i!# is Apatentl.

e!eptiveA or Apatentl. !on-usin$A or A!ontrar. to existin$ la&s,A is t#e avoian!e o- -rau upon t#e pu(li!

i!# &oul #ave o!!asion to eal &it# t#e entit. !on!erne, t#e evasion o- le$al o(li$ations an uties,

an t#e reu!tion o- i--i!ulties o- a%inistration an supervision over !orporations" >e o not !onsiert#at t#e !orporate na%es o- private responent institutions are Aienti!al &it#, or e!eptivel. or

!on-usin$l. si%ilarA to t#at o- t#e petitioner institution" True enou$#, t#e !orporate na%es o- private

responent entities all !arr. t#e &or A2.!eu%A (ut !on-usion an e!eption are e--e!tivel. pre!lue (.

t#e appenin$ o- $eo$rap#i! na%es to t#e &or A2.!eu%"A T#us, &e o not (elieve t#at t#e A2.!eu% o-

parriA !an (e %ista/en (. t#e $eneral pu(li! -or t#e 2.!eu% o- t#e '#ilippines, or t#at t#e A2.!eu% o-

4a%alaniu$anA &oul (e !on-use &it# t#e 2.!eu% o- t#e '#ilippines"

;" ID"B ID"B DO4TRINE OF SE4ONDR =ENINB CSE OF >ORD A24EC=,A NOT TTENDED

>IT+ E42CSIVIT" It is !lai%e, #o&ever, (. petitioner t#at t#e &or A2.!eu%A #as a!:uire a


14/32

se!onar. %eanin$ in relation to petitioner &it# t#e result t#at &or, alt#ou$# ori$inall. a $eneri!, #as

(e!o%e appropria(le (. petitioner to t#e ex!lusion o- ot#er institutions li/e private responents #erein"

T#e o!trine o- se!onar. %eanin$ ori$inate in t#e -iel o- trae%ar/ la&" Its appli!ation #as, #o&ever,

(een extene to !orporate na%es sine t#e ri$#t to use a !orporate na%e to t#e ex!lusion o- ot#ers is

(ase upon t#e sa%e prin!iple i!# unerlies t#e ri$#t to use a parti!ular trae%ar/ or traena%e" In

'#ilippine Nut Inustr., In!" v" Stanar 5rans, In!", t#e o!trine o- se!onar. %eanin$ &as ela(orate

in t#e -ollo&in$ ter%s@ A " " " a &or or p#rase ori$inall. in!apa(le o- ex!lusive appropriation &it# re-eren!e

to an arti!le on t#e %ar/et, (e!ause $eo$rap#i!all. or ot#er&ise es!riptive, %i$#t nevert#eless #ave

(een use so lon$ an so ex!lusivel. (. one prou!er &it# re-eren!e to #is arti!le t#at, in t#at trae an

to t#at (ran!# o- t#e pur!#asin$ pu(li!, t#e &or or p#rase #as !o%e to %ean t#at t#e arti!le &as #is

prou!t"A T#e :uestion i!# arises, t#ere-ore, is et#er or not t#e use (. petitioner o- A2.!eu%A in its

!orporate na%e #as (een -or su!# len$t# o- ti%e an &it# su!# ex!lusivit. as to #ave (e!o%e asso!iate

or ienti-ie &it# t#e petitioner institution in t#e %in o- t#e $eneral pu(li! )or at least t#at portion o- t#e

$eneral pu(li! i!# #as to o &it# s!#ools*" T#e 4ourt o- ppeals re!o$ni?e t#is issue an ans&ere it

in t#e ne$ative@ ACner t#e o!trine o- se!onar. %eanin$, a &or or p#rase ori$inall. in!apa(le o-

ex!lusive appropriation &it# re-eren!e to an arti!le in t#e %ar/et, (e!ause $eo$rap#i!al or ot#er&ise

es!riptive %i$#t nevert#eless #ave (een use so lon$ an so ex!lusivel. (. one prou!er &it# re-eren!e

to t#is arti!le t#at, in t#at trae an to t#at $roup o- t#e pur!#asin$ pu(li!, t#e &or or p#rase #as !o%e to%ean t#at t#e arti!le &as #is prou!e )na n$ vs" Tori(io Teooro, 6 '#il" 7*" T#is !ir!u%stan!e #as

(een re-erre to as t#e istin!tiveness into i!# t#e na%e or p#rase #as evolve t#rou$# t#e su(stantial

an ex!lusive use o- t#e sa%e -or a !onsiera(le perio o- ti%e" " " " No evien!e &as ever presente in

t#e #earin$ (e-ore t#e 4o%%ission i!# su--i!ientl. prove t#at t#e &or 2.!eu% #as inee a!:uire

se!onar. %eanin$ in -avor o- t#e appellant" I- t#ere &as an. o- t#is /in, t#e sa%e ten to prove onl.

t#at t#e appellant #a (een usin$ t#e ispute &or -or a lon$ perio o- ti%e" " " " In ot#er &ors, ile t#e

appellant %a. #ave prove t#at it #a (een usin$ t#e &or 2.!eu% -or a lon$ perio o- ti%e, t#is -a!t

alone i not a%ount to %ean t#at t#e sai &or #a a!:uire se!onar. %eanin$ in its -avor (e!ause

t#e appellant -aile to prove t#at it #a (een usin$ t#e sa%e &or all (. itsel- to t#e ex!lusion o- ot#ers"

=ore so, t#ere &as no evien!e presente to prove t#at !on-usion &ill surel. arise i- t#e sa%e &or &ere

to (e use (. ot#er eu!ational institutions" 4onse:uentl., t#e alle$ations o- t#e appellant in its -irst t&o

assi$ne errors %ust ne!essaril. -ail"A >e a$ree &it# t#e 4ourt o- ppeals" T#e nu%(er alone o- t#eprivate responents in t#e !ase at (ar su$$ests stron$l. t#at petitioners use o- t#e &or A2.!eu%A #as

not (een attene &it# t#e ex!lusivit. essential -or appli!a(ilit. o- t#e o!trine o- se!onar. %eanin$"

'etitioners use o- t#e &or A2.!eu%A &as not ex!lusive (ut &as in trut# s#are &it# t#e >estern

'an$asinan 2.!eu% an a little later &it# ot#er private responent institutions i!# re$istere &it# t#e

SE4 usin$ A2.!eu%A as part o- t#eir !orporation na%es" T#ere %a. &ell (e ot#er s!#ools usin$ 2.!eu%

or 2i!eo in t#eir na%es, (ut not re$istere &it# t#e SE4 (e!ause t#e. #ave not aopte t#e !orporate

-or% o- or$ani?ation"

3" ID"B ID"B =CST 5E EV2CTED IN T+EIR ENTIRET TO DETER=INE >+ET+ER T+E RE

4ONFCSIN2 OR DE4E'TIVE2 SI=I2R TO NOT+ER 4OR'ORTE ENTITS N=E"

petitioner institution is not entitle to a le$all. en-or!ea(le ex!lusive ri$#t to use t#e &or A2.!eu%A in its

!orporate na%e an t#at ot#er institutions %a. use A2.!eu%A as part o- t#eir !orporate na%es" Toeter%ine et#er a $iven !orporate na%e is Aienti!alA or A!on-usin$l. or e!eptivel. si%ilarA &it#

anot#er entit.s !orporate na%e, it is not enou$# to as!ertain t#e presen!e o- A2.!eu%A or A2i!eoA in (ot#

na%es" One %ust evaluate !orporate na%es in t#eir entiret. an en t#e na%e o- petitioner is


15/32

'etitioner is an eu!ational institution ul. re$istere &it# t#e Se!urities an Ex!#an$e 4o%%ission

)ASE4A*" >#en it -irst re$istere &it# t#e SE4 on ;1 Septe%(er 190, it use t#e !orporate na%e 2.!eu%

o- t#e '#ilippines, In!" an #as use t#at na%e ever sin!e"

On ;6 Fe(ruar. 1986, petitioner institute pro!eein$s (e-ore t#e SE4 to !o%pel t#e private

responents, i!# are also eu!ational institutions, to elete t#e &or A2.!eu%A -ro% t#eir !orporate

na%es an per%anentl. to enestern 'an$asinan 2.!eu% ; O!to(er 190

2.!eu% o- 4a(a$an 31 O!to(er 197;

2.!eu% o- 2allo, In!" ;7 =ar!# 19;

2.!eu% o- parri ;8 =ar!# 19;

2.!eu% o- Tuao, In!" ;8 =ar!# 19;

2.!eu% o- 4a%alaniu$an ;8 =ar!# 19;

T#e -ollo&in$ private responents &ere e!lare in e-ault -or -ailure to -ile an ans&er espite servi!e o-

su%%ons@

5u#i 2.!eu%B

4entral 2.!eu% o- 4atanuanesB2.!eu% o- Eastern =inanao, In!"B an

2.!eu% o- Sout#ern '#ilippines

'etitioners ori$inal !o%plaint (e-ore t#e SE4 #a in!lue t#ree )3* ot#er entities@

1" T#e 2.!eu% o- =ala!ana.B

;" T#e 2.!eu% o- =ar(elB an

3" T#e 2.!eu% o- raullo

T#e !o%plaint &as later &it#ra&n inso-ar as !on!erne t#e 2.!eu% o- =ala!ana. an t#e 2.!eu% o-

=ar(el, -or -ailure to serve su%%ons upon t#ese t&o );* entities" T#e !ase a$ainst t#e 2i!eu% o- raullo

&as is%isse en t#at s!#ool %otu proprio !#an$e its !orporate na%e to A'a%antasan n$ raullo"A

T#e (a!/$roun o- t#e !ase at (ar nees so%e re!ountin$" 'etitioner #a so%eti%e (e-ore !o%%en!e

in t#e SE4 a pro!eein$ )SE44ase No" 1;61* a$ainst t#e 2.!eu% o- 5a$uio, In!" to re:uire it to !#an$e

its !orporate na%e an to aopt anot#er na%e not Asi%ilar GtoH or ienti!alA &it# t#at o- petitioner" In anOrer ate ;0 pril 19, sso!iate 4o%%issioner Julio Sulit #el t#at t#e !orporate na%e o- petitioner

an t#at o- t#e 2.!eu% o- 5a$uio, In!" &ere su(stantiall. ienti!al (e!ause o- t#e presen!e o- a

Ao%inantA &or, i"e", A2.!eu%,A t#e na%e o- t#e $eo$rap#i!al lo!ation o- t#e !a%pus (ein$ t#e onl. &or

i!# istin$uis#e one -ro% t#e ot#er !orporate na%e" T#e SE4 also note t#at petitioner #a

re$istere as a !orporation a#ea o- t#e 2.!eu% o- 5a$uio, In!" in point o- ti%e, 1 an orere t#e latter

to !#an$e its na%e to anot#er na%e Anot si%ilar or ienti!al G&it#HA t#e na%es o- previousl. re$istere

entities"

T#e 2.!eu% o- 5a$uio, In!" assaile t#e Orer o- t#e SE4 (e-ore t#e Supre%e 4ourt in a !ase o!/ete

as "R" No" 2679" In a =inute Resolution ate 16 Septe%(er 19, t#e 4ourt enie t#e 'etition -or

Revie& -or la!/ o- %erit" Entr. o-


16/32

On appeal, #o&ever, (. private responents to t#e SE4 En 5an!, t#e e!ision o- t#e #earin$ o--i!er &as

reverse an set asie" T#e SE4 En 5an! i not !onsier t#e &or A2.!eu%A to #ave (e!o%e so

ienti-ie &it# petitioner as to rener use t#ereo- (. ot#er institutions as prou!tive o- !on-usion a(out t#e

ientit. o- t#e s!#ools !on!erne in t#e %in o- t#e $eneral pu(li!" Cnli/e its #earin$ o--i!er, t#e SE4 En

5an! #el t#at t#e atta!#in$ o- $eo$rap#i!al na%es to t#e &or A2.!eu%A serve su--i!ientl. to istin$uis#

t#e s!#ools -ro% one anot#er, espe!iall. in vie& o- t#e -a!t t#at t#e !a%puses o- petitioner an t#ose o-

t#e private responents &ere p#.si!all. :uite re%ote -ro% ea!# ot#er" 3

'etitioner t#en &ent on appeal to t#e 4ourt o- ppeals" In its De!ision ate ;8 June 1991, #o&ever, t#e

4ourt o- ppeals a--ir%e t#e :uestione Orers o- t#e SE4 En 5an!" 6 'etitioner -ile a %otion -or

re!onsieration, &it#out su!!ess"

5e-ore t#is 4ourt, petitioner asserts t#at t#e 4ourt o- ppeals !o%%itte t#e -ollo&in$ errors@

1" T#e 4ourt o- ppeals erre in #olin$ t#at t#e Resolution o- t#e Supre%e 4ourt in "R" No" 2679

i not !onstitute stare e!isis as to appl. to t#is !ase an in not #olin$ t#at sai Resolution (oun

su(se:uent eter%inations on t#e ri$#t to ex!lusive use o- t#e &or 2.!eu%"

;" T#e 4ourt o- ppeals erre in #olin$ t#at responent >estern 'an$asinan 2.!eu%, In!" &as

in!orporate earlier t#an petitioner"

3" T#e 4ourt o- ppeals erre in #olin$ t#at t#e &or 2.!eu% #as not a!:uire a se!onar. %eanin$ in

-avor o- petitioner"6" T#e 4ourt o- ppeals erre in #olin$ t#at 2.!eu% as a $eneri! &or !annot (e appropriate (. t#e

petitioner to t#e ex!lusion o- ot#ers"

>e &ill !onsier all t#e -ore$oin$ as!ri(e errors, t#ou$# not ne!essaril. seriati%" >e (e$in (. notin$

t#at t#e Resolution o- t#e 4ourt in "R" No" 2679 oes not, o- !ourse, !onstitute res a#en a !#an$e in t#e !orporate na%e is approve, t#e 4o%%ission s#all issue an

a%ene !erti-i!ate o- in!orporation uner t#e a%ene na%e"A )E%p#asis supplie*

T#e poli!. unerl.in$ t#e pro#i(ition in Se!tion 18 a$ainst t#e re$istration o- a !orporate na%e i!# is

Aienti!al or e!eptivel. or !on-usin$l. si%ilarA to t#at o- an. existin$ !orporation or i!# is Apatentl.

e!eptiveA or Apatentl. !on-usin$A or A!ontrar. to existin$ la&s,A is t#e avoian!e o- -rau upon t#e pu(li!

i!# &oul #ave o!!asion to eal &it# t#e entit. !on!erne, t#e evasion o- le$al o(li$ations an uties,

an t#e reu!tion o- i--i!ulties o- a%inistration an supervision over !orporations"

>e o not !onsier t#at t#e !orporate na%es o- private responent institutions are Aienti!al &it#, or

e!eptivel. or !on-usin$l. si%ilarA to t#at o- t#e petitioner institution" True enou$#, t#e !orporate na%es o-private responent entities all !arr. t#e &or A2.!eu%A (ut !on-usion an e!eption are e--e!tivel.

pre!lue (. t#e appenin$ o- $eo$rap#i! na%es to t#e &or A2.!eu%"A T#us, &e o not (elieve t#at t#e

A2.!eu% o- parriA !an (e %ista/en (. t#e $eneral pu(li! -or t#e 2.!eu% o- t#e '#ilippines, or t#at t#e

A2.!eu% o- 4a%alaniu$anA &oul (e !on-use &it# t#e 2.!eu% o- t#e '#ilippines"

Et.%olo$i!all., t#e &or A2.!eu%A is t#e 2atin &or -or t#e ree/ l./eion i!# in turn re-erre to a

lo!alit. on t#e river Ilissius in an!ient t#ens A!o%prisin$ an en!losure ei!ate to pollo an aorne

&it# -ountains an (uilin$s ere!te (. 'isistratus, 'eri!les an 2.!ur$us -re:uente (. t#e .out# -or

exer!ise an (. t#e p#ilosop#er ristotle an #is -ollo&ers -or tea!#in$"A 8 In ti%e, t#e &or A2.!eu%A


17/32

(e!a%e asso!iate &it# s!#ools an ot#er institutions proviin$ pu(li! le!tures an !on!erts an pu(li!

is!ussions" T#us toa., t#e &or A2.!eu%A $enerall. re-ers to a s!#ool or an institution o- learnin$" >#ile

t#e 2atin &or Al.!eu%A #as (een in!orporate into t#e En$lis# lan$ua$e, t#e &or is also -oun in

Spanis# )li!eo* an in Fren!# )l.!ee*" s t#e 4ourt o- ppeals note in its De!ision, Ro%an 4at#oli!

s!#ools -re:uentl. use t#e ter%B e"$", A2i!eo e =anila,A A2i!eo e 5alenoA )in 5aleno, =as(ate*, A2i!eo

e =as(ate,A A2i!eo e l(a."A 9 A2.!eu%A is in -a!t as $eneri! in !#ara!ter as t#e &or Auniversit."A In

t#e na%e o- t#e petitioner, A2.!eu%A appears to (e a su(stitute -or Auniversit.BA in ot#er pla!es, #o&ever,

A2.!eu%,A or A2i!eoA or A2.!eeA -re:uentl. enotes a se!onar. s!#ool or a !olle$e" It %a. (e )t#ou$# t#is

is a :uestion o- -a!t i!# &e nee not resolve* t#at t#e use o- t#e &or A2.!eu%A %a. not .et (e as

&iesprea as t#e use o- Auniversit.,A (ut it is !lear t#at a not in!onsiera(le nu%(er o- eu!ational

institutions #ave aopte A2.!eu%A or A2i!eoA as part o- t#eir !orporate na%es" Sin!e A2.!eu%A or A2i!eoA

enotes a s!#ool or institution o- learnin$, it is not unnatural to use t#is &or to esi$nate an entit. i!#

is or$ani?e an operatin$ as an eu!ational institution"

It is !lai%e, #o&ever, (. petitioner t#at t#e &or A2.!eu%A #as a!:uire a se!onar. %eanin$ in relation

to petitioner &it# t#e result t#at t#at &or, alt#ou$# ori$inall. a $eneri!, #as (e!o%e appropria(le (.

petitioner to t#e ex!lusion o- ot#er institutions li/e private responents #erein"

T#e o!trine o- se!onar. %eanin$ ori$inate in t#e -iel o- trae%ar/ la&" Its appli!ation #as, #o&ever,

(een extene to !orporate na%es sine t#e ri$#t to use a !orporate na%e to t#e ex!lusion o- ot#ers is(ase upon t#e sa%e prin!iple i!# unerlies t#e ri$#t to use a parti!ular trae%ar/ or traena%e" 10 In

'#ilippine Nut Inustr., In!" v" Stanar 5rans, In!", 11 t#e o!trine o- se!onar. %eanin$ &as

ela(orate in t#e -ollo&in$ ter%s@

A " " " a &or or p#rase ori$inall. in!apa(le o- ex!lusive appropriation &it# re-eren!e to an arti!le on t#e

%ar/et, (e!ause $eo$rap#i!all. or ot#er&ise es!riptive, %i$#t nevert#eless #ave (een use so lon$ an

so ex!lusivel. (. one prou!er &it# re-eren!e to #is arti!le t#at, in t#at trae an to t#at (ran!# o- t#e

pur!#asin$ pu(li!, t#e &or or p#rase #as !o%e to %ean t#at t#e arti!le &as #is prou!t"A 1;

T#e :uestion i!# arises, t#ere-ore, is et#er or not t#e use (. petitioner o- A2.!eu%A in its !orporate

na%e #as (een -or su!# len$t# o- ti%e an &it# su!# ex!lusivit. as to #ave (e!o%e asso!iate or

ienti-ie &it# t#e petitioner institution in t#e %in o- t#e $eneral pu(li! )or at least t#at portion o- t#e

$eneral pu(li! i!# #as to o &it# s!#ools*" T#e 4ourt o- ppeals re!o$ni?e t#is issue an ans&ere it

in t#e ne$ative@ACner t#e o!trine o- se!onar. %eanin$, a &or or p#rase ori$inall. in!apa(le o- ex!lusive

appropriation &it# re-eren!e to an arti!le in t#e %ar/et, (e!ause $eo$rap#i!al or ot#er&ise es!riptive

%i$#t nevert#eless #ave (een use so lon$ an so ex!lusivel. (. one prou!er &it# re-eren!e to t#is

arti!le t#at, in t#at trae an to t#at $roup o- t#e pur!#asin$ pu(li!, t#e &or or p#rase #as !o%e to %ean

t#at t#e arti!le &as #is prou!e )na n$ vs" Tori(io Teooro, 6 '#il" 7*" T#is !ir!u%stan!e #as (een

re-erre to as t#e istin!tiveness into i!# t#e na%e or p#rase #as evolve t#rou$# t#e su(stantial an

ex!lusive use o- t#e sa%e -or a !onsiera(le perio o- ti%e" 4onse:uentl., t#e sa%e o!trine or prin!iple

!annot (e %ae to appl. ere t#e evien!e i not prove t#at t#e (usiness )o- t#e plainti--* #as

!ontinue -or so lon$ a ti%e t#at it #as (e!o%e o- !onse:uen!e an a!:uire a $oo &ill o- !onsiera(le

value su!# t#at its arti!les an prou!e #ave a!:uire a &ell/no&n reputation, an !on-usion &ill result

(. t#e use o- t#e ispute na%e )(. t#e e-enant* )n$ Si +en$ vs" >ellin$ton Depart%ent Store, In!",9; '#il" 668*"

>it# t#e -ore$oin$ as a .arsti!/, G&eH (elieve t#e appellant -aile to satis-. t#e a-ore%entione

re:uisites" No evien!e &as ever presente in t#e #earin$ (e-ore t#e 4o%%ission i!# su--i!ientl.

prove t#at t#e &or 2.!eu% #as inee a!:uire se!onar. %eanin$ in -avor o- t#e appellant" I- t#ere

&as an. o- t#is /in, t#e sa%e ten to prove onl. t#at t#e appellant #a (een usin$ t#e ispute &or -or

a lon$ perio o- ti%e" Nevert#eless, its )appellant* ex!lusive use o- t#e &or )2.!eu%* &as never

esta(lis#e or proven as in -a!t t#e evien!e ten to !onve. t#at t#e !ross!lai%ant &as alrea. usin$

t#e &or 2.!eu% seventeen )1* .ears prior to t#e ate t#e appellant starte usin$ t#e sa%e &or in its


18/32

!orporate na%e" Furt#er%ore, eu!ational institutions o- t#e Ro%an 4at#oli! 4#ur!# #a (een usin$ t#e

sa%e or si%ilar &or li/e 2i!eo e =anila, 2i!eo e 5aleno )in 5aleno, =as(ate*, 2i!eo e =as(ate,

2i!eo e l(a. lon$ (e-ore appellant starte usin$ t#e &or 2.!eu%" T#e appellant also -aile to prove

t#at t#e &or 2.!eu% #as (e!o%e so ienti-ie &it# its eu!ational institution t#at !on-usion &ill surel.

arise in t#e %ins o- t#e pu(li! i- t#e sa%e &or &ere to (e use (. ot#er eu!ational institutions"

In ot#er &ors, ile t#e appellant %a. #ave prove t#at it #a (een usin$ t#e &or 2.!eu% -or a lon$

perio o- ti%e, t#is -a!t alone i not a%ount to %ean t#at t#e sai &or #a a!:uire se!onar. %eanin$

in its -avor (e!ause t#e appellant -aile to prove t#at it #a (een usin$ t#e sa%e &or all (. itsel- to t#e

ex!lusion o- ot#ers" =ore so, t#ere &as no evien!e presente to prove t#at !on-usion &ill surel. arise i-

t#e sa%e &or &ere to (e use (. ot#er eu!ational institutions" 4onse:uentl., t#e alle$ations o- t#e

appellant in its -irst t&o assi$ne errors %ust ne!essaril. -ail"A 13 )Cners!orin$ partl. in t#e ori$inal an

partl. supplie*

>e a$ree &it# t#e 4ourt o- ppeals" T#e nu%(er alone o- t#e private responents in t#e !ase at (ar

su$$ests stron$l. t#at petitioners use o- t#e &or A2.!eu%A #as not (een attene &it# t#e ex!lusivit.

essential -or appli!a(ilit. o- t#e o!trine o- se!onar. %eanin$" It %a. (e note also t#at at least one o-

t#e private responents, i"e", t#e >estern 'an$asinan 2.!eu%, In!", use t#e ter% A2.!eu%A seventeen

)1* .ears (e-ore t#e petitioner re$istere its o&n !orporate na%e &it# t#e SE4 an (e$an usin$ t#e

&or A2.!eu%"A It -ollo&s t#at i- an. institution #a a!:uire an ex!lusive ri$#t to t#e &or A2.!eu%,A t#atinstitution &oul #ave (een t#e >estern 'an$asinan 2.!eu%, In!" rat#er t#an t#e petitioner institution"

In t#is !onne!tion, petitioner ar$ues t#at (e!ause t#e >estern 'an$asinan 2.!eu%, In!" -aile to

re!onstru!t its re!ors (e-ore t#e SE4 in a!!oran!e &it# t#e provisions o- R"" No" 7;, i!# re!ors

#a (een estro.e urin$ >orl >ar II, >estern 'an$asinan 2.!eu% s#oul (e ee%e to #ave lost all

ri$#ts it %a. #ave a!:uire (. virtue o- its past re$istration" It %i$#t (e note t#at t#e >estern

'an$asinan 2.!eu%, In!" re$istere &it# t#e SE4 soon a-ter petitioner #a -ile its o&n re$istration on ;1

Septe%(er 190" >#et#er or not >estern 'an$asinan 2.!eu%, In!" %ust (e ee%e to #ave lost its

ri$#ts uner its ori$inal 1933 re$istration, appears to us to (e :uite se!onar. in i%portan!eB &e re-er to

t#is earlier re$istration si%pl. to uners!ore t#e -a!t t#at petitioners use o- t#e &or A2.!eu%A &as

neit#er t#e -irst use o- t#at ter% in t#e '#ilippines nor an ex!lusive use t#ereo-" 'etitioners use o- t#e

&or A2.!eu%A &as not ex!lusive (ut &as in trut# s#are &it# t#e >estern 'an$asinan 2.!eu% an a

little later &it# ot#er private responent institutions i!# re$istere &it# t#e SE4 usin$ A2.!eu%A as parto- t#eir !orporation na%es" T#ere %a. &ell (e ot#er s!#ools usin$ 2.!eu% or 2i!eo in t#eir na%es, (ut

not re$istere &it# t#e SE4 (e!ause t#e. #ave not aopte t#e !orporate -or% o- or$ani?ation"

>e !on!lue an so #ol t#at petitioner institution is not entitle to a le$all. en-or!ea(le ex!lusive ri$#t to

use t#e &or A2.!eu%A in its !orporate na%e an t#at ot#er institutions %a. use A2.!eu%A as part o- t#eir

!orporate na%es" To eter%ine et#er a $iven !orporate na%e is Aienti!alA or A!on-usin$l. or

e!eptivel. si%ilarA &it# anot#er entit.s !orporate na%e, it is not enou$# to as!ertain t#e presen!e o-

A2.!eu%A or A2i!eoA in (ot# na%es" One %ust evaluate !orporate na%es in t#eir entiret. an en t#e

na%e o- petitioner is . October , 2002]

IN)USTRIAL RERACTORIES CORPORATION O T%E P%ILIPPINES, et!t!o"er, #$. COURT O

APPEALS, SECURITIES AN) EXC%ANGE CO33ISSION 5"* RERACTORIES CORPORATION O

T%E P%ILIPPINES, re$o"*e"t$.


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) E C I S I O N

AUSTRIAB3ARTINE@, +.

File (e-ore us is a petition -or revie& on !ertiorari uner Rule 6 o- t#e Rules o- 4ourt assailin$ t#e

De!ision o- t#e 4ourt o- ppeals in 4"R" S' No" 307, en.in$ ue !ourse an is%issin$ t#e

petition -ile (. Inustrial Re-ra!tories 4orp" o- t#e '#ilippines )IR4'*"

Responent Re-ra!tories 4orporation o- t#e '#ilippines )R4'* is a !orporation ul. or$ani?e on O!to(er

13, 197 -or t#e purpose o- en$a$in$ in t#e (usiness o- %anu-a!turin$, prou!in$, sellin$, exportin$ an

ot#er&ise ealin$ in an. an all re-ra!tor. (ri!/s, its (.prou!ts an erivatives" On June ;;, 19, it

re$istere its !orporate an (usiness na%e &it# t#e 5ureau o- Do%esti! Trae"

'etitioner IR4' on t#e ot#er #an, &as in!orporate on u$ust ;3, 199 ori$inall. uner t#e na%e

S.n!laire =anu-a!turin$ 4orporation" It a%ene its rti!les o- In!orporation on u$ust ;3, 198 to

!#an$e its !orporate na%e to Inustrial Re-ra!tories 4orp" o- t#e '#ilippines" It is en$a$e in t#e (usiness

o- %anu-a!turin$ all /ins o- !era%i!s an ot#er prou!ts, ex!ept paints an ?in!s"

5ot# !o%panies are t#e onl. lo!al suppliers o- %onolit#i! $unnin$ %ix"1

Dis!overin$ t#at petitioner &as usin$ su!# !orporate na%e, responent R4' -ile on pril 16, 1988 &it#

t#e Se!urities an Ex!#an$e 4o%%ission )SE4* a petition to !o%pel petitioner to !#an$e its !orporate

na%e on t#e $roun t#at its !orporate na%e is !on-usin$l. si%ilar &it# t#at o- petitioners su!# t#at t#epu(li! %a. (e !on-use or e!eive into (elievin$ t#at t#e. are one an t#e sa%e !orporation";

T#e SE4 e!ie in -avor o- responent R4' an renere +EREFORE,


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ri$#t to use t#e &or Re-ra!tories as its !orporate na%e"7T#e appellate !ourt also -oun t#at t#e petition

&as -ile (e.on t#e re$le%entar. perio"

+en!e, #erein petition i!# &e %ust en."

'etitioner !ontens t#at t#e petition (e-ore t#e 4ourt o- ppeals &as ti%el. -ile" It %ust (e note t#at at

t#e ti%e t#e SE4 En 5an! renere its e!ision on =a. 10, 1996, t#e $overnin$ rule on appeals -ro%

:uasi


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$roun alone, t#e instant petition s#oul (e enie as t#e SE4 En 5an!s e!ision #a alrea. attaine

-inalit. an t#e SE4s -inin$s o- -a!t, en supporte (. su(stantial evien!e, is -inal"1

Nevert#eless, to set t#e %atters at rest, &e s#all elve into t#e ot#er issues pose (. petitioner"

'etitioners ar$u%ents, su(stantiall., are as -ollo&s@ )1*


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si%ilar to t#e na%e o- a re$istere -ir%, t#e propose na%e %ust !ontain at least one istin!tive &or

i--erent -ro% t#e na%e o- t#e !o%pan. alrea. re$istere";

s #el in P4!7!$ Eort (.V. #$. Co6rt o: Ae57$ ,;8to -all &it#in t#e pro#i(ition o- t#e la&, t&o

re:uisites %ust (e proven, to &it@

)1*t#at t#e !o%plainant !orporation a!:uire a prior ri$#t over t#e use o- su!# !orporate na%eB

an

);* t#e propose na%e is eit#er@ )a* ienti!al, or )(* e!eptivel. or !on-usin$l. si%ilar to t#at o- an.

existin$ !orporation or to an. ot#er na%e alrea. prote!te (. la&B or )!* patentl. e!eptive, !on-usin$ or

!ontrar. to existin$ la&"

s re$ars t#e -irst re:uisite, it #as (een #el t#at t#e ri$#t to t#e ex!lusive use o- a !orporate na%e &it#

-reeo% -ro% in-rin$e%ent (. si%ilarit. is eter%ine (. r!or!t< o: 5*ot!o"";9In t#is !ase, responent

R4' &as in!orporate on O!to(er 13, 197 an sin!e t#en #as (een usin$ t#e !orporate na%e

Re-ra!tories 4orp" o- t#e '#ilippines" =eanile, petitioner &as in!orporate on u$ust ;3, 199

ori$inall. uner t#e na%e S.n!laire =anu-a!turin$ 4orporation" It onl. starte usin$ t#e na%e Inustrial

Re-ra!tories 4orp" o- t#e '#ilippines en it a%ene its rti!les o- In!orporation on u$ust ;3, 198, or

nine )9* .ears a-ter responent R4' starte usin$ its na%e" T#us, (ein$ t#e prior re$istrant, responent

R4' #as a!:uire t#e ri$#t to use t#e &or Re-ra!tories as part o- its !orporate na%e"

nent t#e se!on re:uisite, in eter%inin$ t#e existen!e o- !on-usin$ si%ilarit. in !orporate na%es, t#etest is et#er t#e si%ilarit. is su!# as to %islea a person usin$ orinar. !are an is!ri%ination an t#e

4ourt %ust loo/ to t#e re!or as &ell as t#e na%es t#e%selves"30'etitioners !orporate na%e is Inustrial

Re-ra!tories 4orp" o- t#e '#ils", ile responents is Re-ra!tories 4orp" o- t#e '#ils" O(viousl., (ot#

na%es !ontain t#e ienti!al &ors Re-ra!tories, 4orporation an '#ilippines" T#e onl. &or t#at

istin$uis#es petitioner -ro% responent R4' is t#e &or Inustrial i!# %erel. ienti-ies a !orporations

$eneral -iel o- a!tivities or operations" >e nee not lin$er on t#ese t&o !orporate na%es to !on!lue t#at

t#e. are patentl. si%ilar t#at even &it# reasona(le !are an o(servation, !on-usion %i$#t arise"31It %ust

(e note t#at (ot# !ater to t#e sa%e !lientele, i"e" t#e steel inustr." In -a!t, t#e SE4 -oun t#at t#ere

&ere instan!es en i--erent steel !o%panies &ere a!tuall. !on-use (et&een t#e t&o, espe!iall. sin!e

t#e. also #ave si%ilar prou!t pa!/a$in$"3;Su!# -inin$s are a!!ore not onl. $reat respe!t (ut even

-inalit., an are (inin$ upon t#is 4ourt, unless it is s#o&n t#at it #a ar(itraril. isre$are or

%isappre#ene evien!e (e-ore it to su!# an extent as to !o%pel a !ontrar. !on!lusion #a su!#evien!e (een properl. appre!iate"33n even &it#out su!# proo- o- a!tual !on-usion (et&een t#e t&o

!orporate na%es, it su--i!es t#at !on-usion is pro(a(le or li/el. to o!!ur"36

Re-ra!tor. %aterials are es!ri(e as -ollo&s@

Re-ra!tories are stru!tural %aterials use at #i$# te%peratures to Gsi!H inustrial -urna!es" T#e. are

supplie %ainl. in t#e -or% o- (ri!/ o- stanar si?es an o- spe!ial s#apes" Re-ra!tories also in!lue

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re-ra!tor. !e%ents, (onin$ %ortars, plasti! -ire(ri!/, !asta(les, ra%%in$ %ixtures, an ot#er (ul/

%aterials su!# as ea(urne $rain %a$nesie, !#ro%e or $roun $anister an spe!ial !la."3

>#ile t#e &or re-ra!tories is a $eneri! ter%, its usa$e is not &iesprea an is li%ite %erel. to t#e

inustr.Ktrae in i!# it is use, an its !ontinuous use (. responent R4' -or a !onsiera(le perio

#as %ae t#e ter% so !losel. ienti-ie &it# it"37=oreover, as #el in t#e !ase o- A"8 '55"!b $5 I87e$!5

"8 )!o$ 5< 'r!$to %e$6$, %.S.'. $5 (5"$5"8 P!7!!"5$, I"c. #$. I87e$!5 "8 )!o$ 5< Cr!$to +e$6$,

%57!8! 5t S645< "8 '5toto45"5",petitioners appropriation o- responents !orporate na%e !annot - in

" Dio/no -or responents"

(ENG@ON, +.

T#is is petition to set asie all t#e pro!eein$s #a in !ivil !ase No" 381 o- t#e 4ourt o- First Instan!e o-

2e.te an to en


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arti!le &as an a--iavit o- t#e treasurer statin$ t#at ;3,6;8 s#ares o- sto!/ #a (een su(s!ri(e an -ull.

pai &it# !ertain properties trans-erre to t#e !orporation es!ri(e in a list appene t#ereto"

);* I%%eiatel. a-ter t#e exe!ution o- sai arti!les o- in!orporation, t#e !orporation pro!eee to o

(usiness &it# t#e aoption o- (.la&s an t#e ele!tion o- its o--i!ers"

)3* On De!e%(er ;, 196, t#e sai arti!les o- in!orporation &ere -ile in t#e o--i!e o- t#e Se!urities an

Ex!#an$e 4o%%issioner, -or t#e issuan!e o- t#e !orresponin$ !erti-i!ate o- in!orporation"

)6* On =ar!# ;;, 1968, penin$ a!tion on t#e arti!les o- in!orporation (. t#e a-oresai $overn%ental

o--i!e, t#e responents Fre 5ro&n, E%%a 5ro&n, +ipolita D" 4#ap%an an 4e-erino S" (ella -ile

(e-ore t#e 4ourt o- First Instan!e o- 2e.te t#e !ivil !ase nu%(ere 381, entitle AFre 5ro&n et al" vs"

rnol 4" +all et al"A, alle$in$ a%on$ ot#er t#in$s t#at t#e Far Eastern 2u%(er an 4o%%er!ial 4o" &as

an unre$istere partners#ipB t#at t#e. &is#e to #ave it issolve (e!ause o- (itter issension a%on$ t#e

%e%(ers, %is%ana$e%ent an -rau (. t#e %ana$ers an #eav. -inan!ial losses"

)* T#e e-enants in t#e suit, na%el., 4" rnol +all an 5rale. '" +all, -ile a %otion to is%iss,

!ontestin$ t#e !ourts


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&it# t#e la& t#e !lai% to (e a !orporation Auner t#is a!tA !oul not (e %ae Ain $oo -ait#"A )Fis#er on t#e

'#ilippine 2a& o- Sto!/ 4orporations, p" " See also +u%p#re.s vs" Dre&, 9 Fla", ;9B ; So", 37;"*

Se!on, t#is is not a suit in i!# t#e !orporation is a part." T#is is a liti$ation (et&een sto!/#olers o-

t#e alle$e !orporation, -or t#e purpose o- o(tainin$ its issolution" Even t#e existen!e o- a e #/!# (rin$s us to one prin!ipal reason . t#is petition %a. not prosper, na%el.@ t#e

petitioners #ave t#eir re%e. (. appealin$ t#e orer o- issolution at t#e proper ti%e"

T#ere is a se!onar. issue in !onne!tion &it# t#e appoint%ent o- a re!eiver" 5ut it %ust (e a%itte t#at

re!eivers#ip is proper in pro!eein$s -or issolution o- a !o%pan. or !orporation, an it &as no error to

re


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NORT%EASTERN 3IN)ANAO

3ISSION O SEVENT% )A?

A)VENTIST, INC., 5"*Dor

rere$e"te* b< +OSUE A. LA?ON,

-EN)ELL 3. SERRANO, LORANTE

P. T? 5"* +ET%RO CALA%AT

5"*Dor SEVENT% )A? A)VENTIST

C%URC% [O] NORT%EASTERN

3IN)ANAO 3ISSION,

Re$o"*e"t$. 'ro%ul$ate@

Jul. ;1, ;007

B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B B

) E C I S I O N

CORONA, +.

T#is petition -or revie& on !ertiorari assails t#e 4ourt o- ppeals )4* e!ision60an resolution61

in 4"R" 4V No" 61977 a--ir%in$, &it# %oi-i!ation, t#e e!ision o- t#e Re$ional Trial 4ourt )RT4* o-

5a.u$an, $usan el Sur, 5ran!# in 4ivil 4ase No" 73"

T#is !ase involves a 1,079 s:" %" lot !overe (. Trans-er 4erti-i!ate o- Title )T4T* No" 6678 in 5a.u$an,

$usan el Sur ori$inall. o&ne (. Felix 4osio an #is &i-e, Felisa 4u.sona"

On pril ;1, 199, t#e spouses 4osio onate t#e lan to t#e Sout# '#ilippine Cnion =ission o- Sevent#

Da. ventist 4#ur!# o- 5a.u$an Esperan?a, $usan )S'C=SD 5a.u$an*"6;'art o- t#e ee o-

onation rea@

NO> 22 =EN 5 T+ESE 'RESENTS@

T#at &e Felix 4osioG,H 69 .ears o- a$eG,H an Felisa 4u.sonaG,H 60 .ears o- a$e, G#Hus(an an &i-e, (ot#

are !iti?enGsH o- t#e '#ilippines, an resientGsH &it# post o--i!e aress in t#e 5arrio o- 5a.u$an,

=uni!ipalit. o- Esperan?a, 'rovin!e o- $usan, '#ilippines, o #ere(. $rant, !onve. an -orever :uit

!lai% (. &a. o- Donation or $i-t unto t#e Sout# '#ilippine GCnionH =ission o- Sevent# Da. ventist

4#ur!# o- 5a.u$an, Esperan?a, $usan, all t#e ri$#ts, title, interest, !lai% an e%an (ot# at la& an as

&ell in possession as in expe!tan!. o- in an to all t#e pla!e o- lan an portion situate in t#e 5arrio o-

*

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5a.u$an, =uni!ipalit. o- Esperan?a, 'rovin!e o- $usan, '#ilippines, %ore parti!ularl. an (oune as

-ollo&s, to &it@

a par!el o- lan -or 4#ur!# Site purposes onl."

situate Gin 5arrio 5a.u$an, Esperan?aH"

rea@ 30 %eters &ie an 30 %eters len$t# or 900 s:uare %eters"

2ot No" 8;;'ls;;" +o%estea ppli!ation No" V3706, Title No" ';8"

5oune reas

Nort# (. National +i$# >a.B East (. 5ri!io eronaB Sout# (. Serapio (iest (. Feli? 4osio

xxx"63

T#e onation &as alle$el. a!!epte (. one 2i(erato Ra.os, an eler o- t#e Sevent# Da. ventist

4#ur!#, on (e#al- o- t#e onee"

T&ent.one .ears later, #o&ever, on Fe(ruar. ;8, 1980, t#e sa%e par!el o- lan &as sol (. t#e spouses

4osio to t#e Sevent# Da. ventist 4#ur!# o- Nort#eastern =inanao =ission )SDNE==*"66T4T No"

6678 &as t#erea-ter issue in t#e na%e o- SDNE=="6

4lai%in$ to (e t#e alle$e onees su!!essorsininterest, petitioners asserte o&ners#ip over t#e

propert." T#is &as oppose (. responents o ar$ue t#at at t#e ti%e o- t#e onation, S'C=SD

5a.u$an !oul not le$all. (e a onee

(e!ause, not #avin$ (een in!orporate .et, it #a no


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T#e !ontrovers. (et&een petitioners an responents involves t&o suppose trans-ers o- t#e lot

previousl. o&ne (. t#e spouses 4osio@ )1* a onation to petitioners alle$e pree!essorsininterest in

199 an );* a sale to responents in 1980"

Donation is unenia(l. one o- t#e %oes o- a!:uirin$ o&ners#ip o- real propert." 2i/e&ise, o&ners#ip o- a

propert. %a. (e trans-erre (. traition as a !onse:uen!e o- a sale"

'etitioners !onten t#at t#e appellate !ourt s#oul not #ave rule on t#e valiit. o- t#e onation sin!e it

&as not a%on$ t#e issues raise on appeal" T#is is not !orre!t (e!ause an appeal $enerall. opens t#e

entire !ase -or revie&"

>e a$ree &it# t#e appellate !ourt t#at t#e alle$e onation to petitioners &as voi"

Donation is an a!t o- li(eralit. ere(. a person isposes $ratuitousl. o- a t#in$ or ri$#t in -avor

o- anot#er person o a!!epts it" T#e onation !oul not #ave (een %ae in -avor o- an entit. .et

inexistent at t#e ti%e it &as %ae" Nor !oul it #ave (een a!!epte as t#ere &as .et no one to a!!ept it"

T#e ee o- onation &as not in -avor o- an. in-or%al $roup o- SD %e%(ers (ut a suppose S'C=SD 5a.u$an )t#e lo!al !#ur!#* i!#, at t#e ti%e, #a neit#er


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4orporate existen!e (e$ins onl. -ro% t#e %o%ent a !erti-i!ate o- in!orporation is issue" No su!#

!erti-i!ate &as ever issue to petitioners or t#eir suppose pree!essorininterest at t#e ti%e o- t#e

onation" 'etitioners o(viousl. !oul not #ave !lai%e su!!ession to an entit. t#at never !a%e to exist"

Neit#er !oul t#e prin!iple o- separate e are !onvin!e t#at t#ere &as no onation to petitioners or t#eir suppose pree!essorininterest"

On t#e ot#er #an, t#ere is su--i!ient (asis to a--ir% t#e title o- SDNE==" T#e -a!tual -inin$s o- t#e trial!ourt in t#is re$ar &ere not !onvin!in$l. ispute" T#is 4ourt is not a trier o- -a!ts" Onl. :uestions o- la&

are t#e proper su(


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No e#!*e"ce [o: :r56*, !$t5e or 6"*6e !":76e"ce] 5$ 5**6ce* b< [et!t!o"er$].

xxx

>ellentren!#e is t#e rule t#at 5 Cert!:!c5te o: T!t7e !$ 8e"er577< 5 co"c76$!#e e#!*e"ce o:

[o"er$4!] o: t4e 75"*" T#ere is t#at stron$ an soli presu%ption t#at titles &ere le$all. issue an

t#at t#e. are vali" It is irrevo!a(le an ine-easi(le an t#e ut. o- t#e 4ourt is to see to it t#at t#e title is

%aintaine an respe!te unless !#allen$e in a ire!t pro!eein$" xxx T#e title s#all (e re!eive as

evien!e in all t#e 4ourts an s#all (e !on!lusive as to all %atters !ontaine t#erein"

GT#is a!tion &as institute al%ost seven .ears a-ter t#e !erti-i!ate o- title in responents na%e

&as issue in 1980"H9

!!orin$ to rt" 16 o- t#e 4ivil 4oe, t#e o&ners#ip o- t#e t#in$ sol s#all (e trans-erre to t#e venee

upon t#e a!tual or !onstru!tive eliver. t#ereo-" On t#is, t#e note aut#or rturo Tolentino #a t#is to sa.@

T#e exe!ution o- GaH pu(li! instru%ent xxx trans-ers t#e o&ners#ip -ro% t#e venor to t#e venee o%a. t#erea-ter exer!ise t#e ri$#ts o- an o&ner over t#e sa%e70

+ere, trans-er o- o&ners#ip -ro% t#e spouses 4osio to SDNE== &as %ae upon !onstru!tive eliver.

o- t#e propert. on Fe(ruar. ;8, 1980 en t#e sale &as %ae t#rou$# a pu(li! instru%ent"71T4T No"

6678 &as t#erea-ter issue an it re%ains in t#e na%e o- SDNE=="

-%EREORE, t#e petition is #ere(. )ENIE)"

4osts a$ainst petitioners"

SO OR)ERE).

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Corpo Cases Section 6 - 15

Documents

Transcript of Corpo Cases Section 6 - 15