Corporation Full Text Batch 4

8/9/2019 Corporation Full Text Batch 4

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CORPORATION FULL TEXT

BATCH

Republic of the Philippines

SUPREME COURT

SECOND DIISION

G.R. No. 149252. April 28, 2005

DONALD KWOK,Petitione!s"

#s$

P!L!PP!NE CARPET MANU"ACTUR!NG CORPORAT!ON,Respon%ents$

D E C I S I O N

CALLE#O, SR., J.$

This is & petition fo! !e#ie' of the Decision(of the Cou!t of Appe&ls )CA* in CA+,$R$ SP No$ -./0/

%is1issin2 Don&l% 3'o45s petition fo! !e#ie' on certiorari&n% &ffi!1in2 the 1&6o!it7 Decision of the

N&tion&l L&bo! Rel&tions Co11ission )NLRC*" &s 'ell &s its !esolution in NLRC NCR C&se No$ ..+

(/+.89:9+;- %is1issin2 the 1otion fo! !econsi%e!&tion of the s&i% %ecision$

The Antece%ents

In (;-:" petitione! Don&l% 3'o4 &n% his f&the!+in+l&' P&t!icio L$ Li1" &lon2 'ith so1e othe!

stoc4hol%e!s" est&blishe% & co!po!&tion" the !espon%ent Philippine C&!pet


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The !espon%ent co!po!&tion %enie% &ll these" cl&i1in2 th&t upon the petitione!5s !eti!e1ent" he

!ecei#e% the &1ount of P-";./"0@8$(; !ep!esentin2 &ll the benefits %ue hi1$ Despite this" the

petitione! &2&in %e1&n%e%P8".@.":9-$.." 'hich %e1&n% '&s 'ithout f&ctu&l &n% le2&l b&sis$ The

!espon%ent co!po!&tion &sse!te% th&t the ch&i!1&n of its bo&!% of %i!ecto!s &n% its p!esi%ent#ice+

p!esi%ent h&% unli1ite% %isc!etion in the use of thei! ti1e" &n% h&% ne#e! been !e?ui!e% to file

&pplic&tions fo! #&c&tion &n% sic4 lees &s such" the s&i% office!s 'e!e not entitle% to #&c&tion &n%sic4 lee benefits$ The !espon%ent co!po!&tion" li4e'ise" pointe% out th&t e#en if the petitione! '&s

entitle% to the s&i% &%%ition&l benefits" his cl&i1 h&% &l!e&%7 p!esc!ibe%$ It fu!the! e!!e% th&t it h&%

no polic7 to 2!&nt #&c&tion &n% sic4 lee c!e%its to the petitione!$-

In his Affi%it8%&te% HEREFORE" &ll the fo!e2oin2 p!e1ises bein2 consi%e!e%" 6u%21ent is he!eb7 !en%e!e% o!%e!in2

the !espon%ent co1p&n7 to p&7 co1pl&in&nt the su1 of P8".@.":9-$.." plus ten pe!cent )(.*the!eof &s &n% fo! &tto!ne75s fees$

SO ORDERED$;

Un%&unte%" the !espon%ent co!po!&tion &ppe&le% the %ecision to the NLRC" &lle2in2 th&t

I$ THE LABOR ARBITER ERRED IN CONCLUDIN, THAT 3>O3 >AS COERED B THE

NOE


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The !espon%ent co!po!&tion e!!e% th&t b&se% on the petitione!5s 1e1o!&n%u1" his &%1issions

&n% the cont!&ct of e1plo71ent" the petitione! '&s not entitle% to the c&sh con#e!sion of his sic4 &n%

#&c&tion lee c!e%its$ >hile the !espon%ent co!po!&tion conce%e% th&t the petitione! 1&7 he

been entitle% to unli1ite% sic4 &n% #&c&tion lee benefits %u!in2 his e1plo71ent" it 1&int&ine% th&t

no such p!o1ise '&s 1&%e b7 Li1 to con#e!t the s&1e e#en &ssu1in2 th&t such #e!b&l p!o1ise

'&s 1&%e" the !espon%ent co!po!&tion '&s not boun% the!eb7 since the petitione! f&ile% to &%%ucethe '!itten confo!1it7 of its bo&!% of %i!ecto!s$ The !espon%ent co!po!&tion insiste% th&t the cl&i1s of

the petitione! 'e!e b&!!e% un%e! A!ticle /;( of the L&bo! Co%e$

Fo! his p&!t" the petitione! 1&%e the follo'in2 e!1ents in his 1e1o!&n%u1

The non+pe!fo!1&nce b7 PC

!e#e!sin2 &n% settin2 &si%e the %ecision of the L&bo! A!bite!$(-The NLRC o!%e!e% the %is1iss&l of

the co1pl&int$ Co11issione! An2elit& A$ ,&cut&n file% & %issentin2 opinion$(8

A22!ie#e%" the petitione! file% & petition fo! !e#ie' 'ith the CA" on the follo'in2 2!oun%s

I

THE COITH ,RAE

ABUSE OF DISCRETION AHEN ITDECLARED THAT THE ERBAL PRO


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I

THE COITH ,RAE

ABUSE OF DISCRETION AHEN IT

I,NORED STRON, AND CLEAR EIDENCE THAT IN PCAS A PREALENT PRACTICE$

THE COITH ,RAE

ABUSE OF DISCRETION AHEN IT

RULED THAT THE

III

The Hon$ Cou!t of Appe&ls 2!el7 e!!e% &n% %is!e2&!%e% cle&! 6u!isp!u%ence on the 1&tte! 'hen it

!ule% th&t the!e is no sho'in2 th&t p!i#&te !espon%ent" th!u its bo&!% of %i!ecto!s eithe! !eco2niGe%"

&pp!o#e% o! !&tifie% the p!o1ise 1&%e b7

As 2le&ne% f!o1 his


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p!i#ile2e bec&use of his !&n4$ He" li4e'ise" cl&i1s th&t" in cont!&st to the e#i%ence he h&s p!esente%"

the !espon%ent co!po!&tion f&ile% to &%%uce p!oof of its &ffi!1&ti#e &lle2&tions$

The petitione! fu!the! &!2ues th&t his co1pl&int '&s not ti1e+b&!!e% since he file% it on Dece1be! :"

(;;-$ E#en if this 'e!e so" he is" ne#e!theless" entitle% to the c&sh #&lue of his #&c&tion &n% sic4

lee c!e%its fo! th!ee 7e&!s befo!e his !eti!e1ent$


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of the NLRC on &ppe&l" &s 'ell &s its conclusions b&se% on the s&i% fin%in2s" &!e c&p!icious &n%

&!bit!&!7$

>hile the petitione! '&s une?ui#oc&l in cl&i1in2 th&t the !espon%ent co!po!&tion" th!ou2h its

p!esi%ent &n% ch&i!1&n of the bo&!% of %i!ecto!s" obli2e% itself" &s & 1&tte! of polic7" to 2!&nt hi1 the

c&sh #&lue of his #&c&tion &n% sic4 lee c!e%its upon his !eti!e1ent" he '&s bu!%ene% to p!o#e hiscl&i1 b7 subst&nti&l e#i%ence$/9The petitione! f&ile% to %isch&!2e this bu!%en$

>e &2!ee 'ith the petitione!5s contention th&t fo! & cont!&ct to be bin%in2 on the p&!ties the!eto" it

nee% not be in '!itin2 unless the l&' !e?ui!es th&t such cont!&ct be in so1e fo!1 in o!%e! th&t it 1&7

be #&li% o! enfo!ce&ble o! th&t it be e=ecute% in & ce!t&in '&7" in 'hich c&se th&t !e?ui!e1ent is

&bsolute &n% in%epen%ent$/:In%ee%" co!po!&te policies nee% not be in '!itin2$ Cont!&cts ente!e% into

b7 & co!po!&te office! o! obli2&tions o! p!est&tions &ssu1e% b7 such office! fo! &n% in beh&lf of such

co!po!&tion &!e bin%in2 on the s&i% co!po!&tion onl7 if such office! &cte% 'ithin the scope of his

&utho!it7 o! if such office! e=cee%e% the li1its of his &utho!it7" the co!po!&tion h&s !&tifie% such

cont!&cts o! obli2&tions$

In the p!esent c&se" the petitione! !elie% p!incip&ll7 on his testi1on7 to p!o#e th&t Li1 1&%e & #e!b&l

p!o1ise to 2i#e hi1 #&c&tion &n% sic4 lee c!e%its" &s 'ell &s the p!i#ile2e of con#e!tin2 the s&1e

into c&sh upon !eti!e1ent$ The Cou!t &2!ees th&t those 'ho belon2 to the uppe! co!po!&te echelons

'oul% he 1o!e p!i#ile2es$ Ho'e#e!" the Cou!t c&nnot p!esu1e the e=istence of such p!i#ile2es o!

benefits$ The petitione! '&s bu!%ene% to p!o#e not onl7 the e=istence of such benefits but &lso th&t

he is entitle% to the s&1e" especi&ll7 consi%e!in2 th&t such p!i#ile2es &!e not inhe!ent to the

positions occupie% b7 the petitione! in the !espon%ent co!po!&tion" son+in+l&' of its p!esi%ent o! not$

In %is1issin2 the petition befo!e it" the CA %isbelie#e% the petitione!5s testi1on7 &n% 2e c!e%ence

&n% p!ob&ti#e 'ei2ht to the collecti#e testi1onies of the !espon%ent co!po!&tion5s 'itnesses" 'ho

'e!e its e1plo7ees &n% office!s" inclu%in2 Li1" 'ho1 the petitione! p!esente% &s & hostile 'itness$>e &2!ee 'ith the &ppell&te cou!t5s enco1p&ssin2 s7nthesis &n% &n&l7sis of the e#i%ence on !eco!%

E=cept fo! his b&!e &sse!tions" petitione! h&s not &%%uce% sufficient e#i%ence to suppo!t his cl&i1

th&t he '&s" in%ee%" p!o1ise% the c&sh con#e!sion of his unuse% #&c&tion &n% sic4 lees upon

!eti!e1ent$ Petitione! h&!ps on 'h&t he c&lls the p!e#&lent p!&ctice in PC


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&ffi!1&ti#e &lle2&tions in the co1pl&int &n% the %efen%&nt o! !espon%ent h&s to p!o#e the &ffi!1&ti#e

&lle2&tions in his &ffi!1&ti#e %efenses &n% counte!cl&i1$ Petitione!" in the c&se &t b&!" h&s f&ile% to

%isch&!2e this bu!%en$/-

The CA 1&%e sho!t shift of the cl&i1 of the petitione! th&t pe!

ATT$ PI

ATT$ PI


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ATT$ PI

ATT$ PI

K

ATT$ PIITNESS

es" !i2ht$

ATT$ PIITNESS

As f&! &s I51 conce!ne%" it %oes not &ppl7 fo! )sic * 1e$

In &ll !espects" the!efo!e" petitione!" b7 #i!tue of his position &s E=ecuti#e ice+P!esi%ent" is not

co#e!e% b7 the No#e1be! -" (;@(


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ART 291 LA


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In the c&se &t b&!" ho'e#e!" the!e is no sho'in2 th&t PC


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SUPREME COURT


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!espon%ent co!po!&tion to p&7 petitione! P($0 1illion plus le2&l inte!est" &tto!ne75s fees" li?ui%&te%

%&1&2es &n% costs of suit$ The co1pl&int '&s %is1isse% &2&inst !espon%ent hei!s$8

On &ppe&l" the CA !e#e!se% &n% set &si%e the %ecision of RTC+B!$ (0;$ !( &'l+ (&-( (&' lo-) %-*

p'r*o)-l (o +' ill- -)+ (&-( (&' or(;-;' %-* )/ll -)+ oi+ 3or l- o3 -/(&ori( 3ro (&'

orpor-(io).

Petitione! is no' befo!e this Cou!t 'ith the follo'in2 &ssi2n1ent of e!!o!s

($ THE CAJ" >ITH ALL DUE RESPECT" COHEN IT DECLARED THAT THE CORPORATION DID NOT RATIF THE ACT OF ITS

PRESIDENT IN OBTAININ, LOANS FRO< PETITIONER DESPITE ITS ADITH ALL DUE RESPECT" COHEN IT SET ASIDE THE A>ARD OF INTEREST B >A OF DAe be2in 'ith & b!ief stu%7 of so1e 'ell+settle% le2&l %oct!ines !ele#&nt to the %isposition of this

c&se$

P'r*o)-l or Corpor-(' Li-ili(F
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A co!po!&tion is & 6u!i%ic&l pe!son" sep&!&te &n% %istinct f!o1 its stoc4hol%e!s$ Bein2 & 6u!i%ic&l entit7"

& co!po!&tion 1&7 &ct th!ou2h its bo&!% of %i!ecto!s" &s p!o#i%e% in Section /0 of the Co!po!&tion

Co%e of the Philippines;

Sec$ /0$ The Board of Directors or Trustees. Unless othe!'ise p!o#i%e% in this Co%e" the co!po!&te

po'e!s of &ll co!po!&tions fo!1e% un%e! this Co%e sh&ll be e=e!cise%" &ll business con%ucte% &n% &llp!ope!t7 of such co!po!&tions cont!olle% &n% hel% b7 the bo&!% of %i!ecto!s o! t!ustees K

=== === ===

The co!po!&tion c&n &lso &ct th!ou2h its co!po!&te office!s 'ho 1&7 be &utho!iGe% eithe! e=p!essl7

b7 the b7+l&'s o! bo&!% !esolutions o! i1plie%l7 such &s b7 2ene!&l p!&ctice o! polic7 o! &s &!e

i1plie% f!o1 e=p!ess po'e!s$(.The 2ene!&l p!inciples of &2enc7 2o#e!n the !el&tion bet'een the

co!po!&tion &n% its office!s o! &2ents$((>hen &utho!iGe%" thei! &cts c&n bin% the co!po!&tion$

Con#e!sel7" 'hen un&utho!iGe%" thei! &cts c&nnot bin% it$

Ho'e#e!" the co!po!&tion 1&7 !&tif7 the un&utho!iGe% &ct of its co!po!&te office!$

(/

R&tific&tion 1e&nsth&t the p!incip&l #olunt&!il7 &%opts" confi!1s &n% 2i#es s&nction to so1e un&utho!iGe% &ct of its

&2ent on its beh&lf$ It is this #olunt&!7 choice" 4no'in2l7 1&%e" 'hich &1ounts to & !&tific&tion of

'h&t '&s the!etofo!e un&utho!iGe% &n% beco1es the &utho!iGe% &ct of the p&!t7 so 1&4in2 the

!&tific&tion$(0The subst&nce of the %oct!ine is confi!1&tion &fte! con%uct" &1ountin2 to & substitute

fo! & p!io! &utho!it7$(9R&tific&tion c&n be 1&%e eithe! e=p!essl7 o! i1plie%l7$ I1plie% !&tific&tion 1&7

t&4e #&!ious fo!1s li4e silence o! &c?uiescence" &cts sho'in2 &pp!o#&l o! &%option of the &ct" o!

&ccept&nce &n% !etention of benefits flo'in2 the!ef!o1$(:

TE POWER TO


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B. D'3')+-)(* ADM!T (&-( (&' (o(-l -o/)( o3 P1.B Millio) */='( -(('r o3 (&' Proi**or

No('* %-* RECE!ED (&' D'3')+-)(:Corpor-(io)H(@)e1ph&sis supplie%*

=== === ===

In its &ns'e!" !espon%ent co!po!&tion st&te%

8. T&' */ o3 o)' %&i& ?p'(i(io)'r@ *o/;&( (o r'o'r 3or &'r'i) ?r'*po)+')(*@ i* )o(

r'-ll - lo-) /( &i* i)'*(')( (o (&' i)i); pro='( o3 ?r'*po)+')(@ orpor-(io) 'hich

unfo!tun&tel7 %i% not succee% %ue to the %el&7s c&use% b7 t7phoons &n% b&% !&in7 se&son in the

Ben2uet 1ount&ins c&usin2 l&n%sli%es in the 1inin2 &n% 1illin2 site %u!in2 the l&tte! p&!t of (;@@"

&n% the 4ille! e&!th?u&4e of (;;. 'hich %est!o7e% the 1inin2 &!e&$ As in#est1ent to & losin2

business #entu!e" he is not entitle% to cl&i1 p&71ent neithe! coul% he t!e&t it &s & lo&n$(;

T&' CA &'l+ (&-( (&i* -+i**io) %-* )o( (-)(-o/)( (o r-(i3i-(io) '-/*' %&-( r'*po)+')(

orpor-(io) -+i(('+ %-* (&-( (&' o)' %-* i) 3-( r''i'+ -* -) i)'*(')( $ It conclu%e%

th&t

K e#en if the !espon%ent co!po!&tionJ !ecei#e% the 1one7" it c&nnot be hel% !esponsible fo! not

4no'in2 the p!ece%in2 t!&ns&ction bet'een the pJ!esi%ent &n% the petitione!J &s in f&ct the!e '&s &

1is!ep!esent&tion 1&%e to the !espon%ent co!po!&tionJ" to the effect th&t the 1one7 '&s &n

in#est1ent &n% not & lo&n$ The &lle2e% in#est1ent is &ctu&ll7 & pe!son&l lo&n of Cecilio %e ill&$/.

P'(i(io)'r* o)(')(io) &-* )o 'ri(. T&'r' %-* )o *&o%i); (&-( r'*po)+')( orpor-(io) ''r

-/(&ori'+ +' ill- (o o(-i) (&' lo-)* o) i(* '&-l3. T&' )o('* +i+ )o( *&o% (&-( +' ill-

-('+ o) '&-l3 o3 (&' orpor-(io). A(/-ll, (&' orpor-(io) %o/l+ )o( &-' 3i;/r'+ i) (&'

(r-)*-(io) -( -ll &-+ i( )o( '') 3or i(* -+i**io) (&-( i( r''i'+ (&' -o/)( o3 P 1.B illio).

A* o/l+ ' ;l'-)'+ 3ro (&' proi**or )o('*, i( %-* - *(r-);'r (o (&' (r-)*-(io)$

Thus" 'e conclu%e th&t petitione! hi1self %i% not consi%e! the co!po!&tion to be his %ebto! fo! if he

!e&ll7 4ne' th&t %e ill& '&s obt&inin2 the lo&n on beh&lf of the co!po!&tion" then 'h7 %i% he &llo'

the notes to !eflect onl7 the pe!son&l li&bilit7 of %e ill&/(E#en the %e1&n% lette!s of petitione! 'e!e

pe!son&ll7 &%%!esse% to %e ill& &n% not to !espon%ent co!po!&tion$//Un%oubte%l7" petitione! %e&lt

'ith %e ill& pu!el7 in his pe!son&l c&p&cit7$

Respon%ent co!po!&tion coul% not he !&tifie% the &ct of %e ill& bec&use the!e '&s no p!oof th&t it

4ne' th&t he too4 out & lo&n on its beh&lf$ As st&te% e&!lie!" !&tific&tion is & #olunt&!7 choice th&t is

4no'in2l7 1&%e$ T&' orpor-(io) o/l+ )o( &-' r-(i3i'+ -) -( i( &-+ )o )o%l'+;' o3$

=== === ===

Or+i)-ril, (&' pri)ip-l /*( &-' 3/ll )o%l'+;' -( (&' (i' o3 r-(i3i-(io) o3 -ll (&' -('ri-l

3-(* -)+ ir/*(-)'* r'l-(i); (o (&' /)-/(&ori'+ -( o3 (&' p'r*o) %&o -**/'+ (o -(

-* -;')(. T&/*, i3 -('ri-l 3-(* %'r' */ppr'**'+ or /))o%), (&'r' -) ' )o -li+

r-(i3i-(io) I. 2B
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T&' 3-( (&-( (&' orpor-(io) -+i(('+ r''ii); (&' pro''+* o3 (&' lo-) +i+ )o( -o/)( (o

r-(i3i-(io) o3 (&' lo-). !( -'p('+ (&' -o/)( 3ro +' ill-, i(* pr'*i+')( -( (&-( (i', i) ;oo+

3-i(&. Goo+ 3-i(& i* -l%-* pr'*/'+.24 P'(i(io)'r +i+ )o( *&o% (&-( (&' orpor-(io) -('+ i)

-+ 3-i(&$

It follo's th&t !espon%ent co!po!&tion '&s not li&ble fo! the subse?uent loss of the 1one7 'hich it&ccepte% &s &n in#est1ent$ It coul% not be f&ulte% fo! not 4no'in2 th&t it '&s the p!ocee%s of & lo&n

obt&ine% b7 %e ill&$ It '&s un%e! no obli2&tion to chec4 the sou!ce of the in#est1ents 'hich 'ent

into its coffe!s$ As lon2 &s the in#est1ent '&s use% fo! le2iti1&te co!po!&te pu!poses" the in#esto!

bo!e the !is4 of loss$

The!efo!e" on the fi!st issue" the lo&n '&s pe!son&l to %e ill&$ The!e '&s no b&sis to hol% the

co!po!&tion li&ble since the!e '&s no &utho!it7" e=p!ess" i1plie% o! &pp&!ent" 2i#en to %e ill& to

bo!!o' 1one7 f!o1 petitione!$ Neithe! '&s the!e &n7 subse?uent !&tific&tion of his &ct$

W-* (&' Mor(;-;' -li+ or oi+F

Petitione! insists th&t the 1o!t2&2e e=ecute% b7 %e ill&" &s p!esi%ent of the co!po!&tion" '&s !&tifie%

b7 the l&tte! since the 1o!t2&2e '&s &n &ccesso!7 cont!&ct of the lo&n$/:>e %is&2!ee$

A *p'i-l po%'r o3 -((or)' i* )''**-r (o r'-(' or o)' r'-l ri;&(* o'r io-l'

prop'r(.26 "/r(&'ror', (&' *p'i-l po%'r o3 -((or)' /*( -pp'-r i) - p/li +o/')(.2 !)

(&' -*')' o3 - *p'i-l po%'r o3 -((or)' i) 3-or o3 +' ill- -* pr'*i+')( o3 (&' orpor-(io),

)o -li+ or(;-;' o/l+ &-' '') ''/('+ &i.28 Si)' (&' or(;-;' %-* oi+, i( o/l+

)o( ' r-(i3i'+$

P'(i(io)'r -))o( l-' -)o)' /( &i*'l3. ' +i+ )o( &' i3 (&' p'r*o) &' %-* +'-li);

%i(& &-+ (&' -/(&ori( (o or(;-;' (&' prop'r( 'i); o33'r'+ -* oll-('r-l.

,i#en th&t the lo&n &n% 1o!t2&2e 'e!e not bin%in2 on !espon%ent co!po!&tion" the l&tte! c&nnot be

hel% li&ble fo! inte!est" &tto!ne75s fees &n% li?ui%&te% %&1&2es &!isin2 f!o1 the lo&n$

P'r*o)-l Li-ili( o3 D' ill-

T&' li-ili( -ri*i); 3ro (&' lo-) %-* (&' *ol' i)+'('+)'** o3 +' ill- or o3 &i* '*(-(' -3('r

&i* +'-(&*$ Petitione! #i2o!ousl7 sou2ht to 1&4e !espon%ent co!po!&tion li&ble but e=e!te% no effo!t

&t &ll to &!2ue fo! the li&bilit7 of !espon%ent hei!s$ The t!i&l cou!t co!!ectl7 %is1isse% the c&se &2&inst

the l&tte!. P'(i(io)'r* r''+ )o% i* (o 3il' - o)' l-i i) (&' *'((l'')( pro''+i);* o3 +'

ill-* '*(-(', i3 )o( (oo l-(', -* i)+i-('+ i)

Rule @-/;of the Rules of Cou!t$

WERE"ORE" the petition is he!eb7 DEN!ED.The Octobe! (@" /..( %ecision of the Cou!t of

Appe&ls in CA+,$R$ C No$ -(8:: is A""!RMED$

Costs &2&inst petitione!$
http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt24http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt24http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt24http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt24http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt25http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt26http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt26http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt27http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt27http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt28http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt28http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt29http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt24http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt25http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt26http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt27http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt28http://www.lawphil.net/judjuris/juri2006/aug2006/gr_150350_2006.html#fnt29


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SO ORDERED.

RENATO C. CORONA

Associ&te ustice

T!RD D!!S!ON

?G.R. No. 144661 -)+ 1449. #/)' 15, 2005@

DEELOPMENT


17/110

Petitione! file% b7 !e2iste!e% 1&il & 1otion fo! e=tension ti1e to sub1it petition" p&7in2 the

co!!espon%in2 %oc4et fees the!efo! b7 1one7 o!%e!$ Upon !eceipt of the 1otion" the Cou!t %oc4ete%

the c&se &s ,$R$ No$ (998;8$ Befo!e &ctu&l !eceipt of s&i% 1otion" ho'e#e!" petitione! pe!son&ll7

file% its petition" 'hich '&s %oc4ete% 'ith & lo'e! nu1be! &s ,$R$ No$ (99--($ >h&t then &ppe&!s

to be t'o )/* c&ses befo!e us &!e &ctu&ll7 6ust one" no' the sub6ect of this %ecision$

The f&cts &!e si1ple &n% un%ispute%

Petitione!5s fo!eclose% &sset" fo!1e!l7 o'ne% b7 one En!i?ue Ab&%& un%e! TCT No$ T+98@- &n%

loc&te% &t Co!!&les E=tension" C&2&7&n %e O!o Cit7 is the sub6ect of this cont!o#e!s7$ On NPA


18/110

In 7et &nothe! '!itten offe! %&te% Octobe! /@" (;@@ 9J" !espon%ents 1&tche% the s&i% offe! of the

secon% inte!este% bu7e! b7 &ssu1in2 the !esponsibilit7 Q&t 17ou! o'n e=pense fo! the e6ection of

s?u&tte!soccup&nts" if &n7" on the p!ope!t7$

On Ap!il 8" (;@;" the!e '&s & confe!ence bet'een !espon%ents" to2ethe! 'ith thei! counsel" &n%

the b&n4 'he!e&t !espon%ents 'e!e info!1e% 'h7 the s&le coul% not be &'&!%e% to the1$The!e&fte!" in & lette! %&te% Septe1be! -" (;;. :J" !espon%ents 'e!e notifie% th&t the p!ope!t7 'oul%

inste&% be offe!e% fo! public bi%%in2 on Septe1be! /9" (;;. &t ten (... o5cloc4 in the 1o!nin2$

Feelin2 &22!ie#e% b7 such tu!n of e#ents" !espon%ents file% 'ith the Re2ion&l T!i&l Cou!t &t

C&2&7&n %e O!o Cit7 & co1pl&int fo! b!e&ch of cont!&ct &n%o! specific pe!fo!1&nce &2&inst

petitione!$ The!e&t" the co1pl&int '&s %oc4ete% &s Ci#il C&se No$ ;.+9// 'hich '&s !&ffle% to

B!&nch /0 of the cou!t$

Afte! p!e+t!i&l" the p&!ties &2!ee% to sub1it the c&se fo! 6u%21ent b&se% on the ple&%in2s$

Acco!%in2l7" the t!i&l cou!t !e?ui!e% the1 to sub1it si1ult&neousl7 thei! !especti#e 1e1o!&n%&

'ithin thi!t7 )0.* %&7s$ Onl7 petitione! file% its 1e1o!&n%u1$

In & %ecision-J%&te% Ap!il /:" (;;:" the t!i&l cou!t %is1isse% the co1pl&int fin%in2 th&t the!e '&s

Qno pe!fecte% cont!&ct of s&le bet'een the p&!ties" hence" Qthe!e is no b!e&ch to spe&4 of since

the!e '&s no cont!&ct f!o1 the #e!7 be2innin2$ Ho'e#e!" upon !espon%ents5 1otion fo!

!econsi%e!&tion" the t!i&l cou!t #&c&te% its 6u%21ent &n% set the c&se fo! the !eception of e#i%ence$

This ti1e" onl7 the !espon%ents &%%uce% thei! e#i%ence consistin2 of the lone testi1on7 of

!espon%ent F!&ncisco On2 &n% the %ocu1ents i%entifie% b7 hi1 in the cou!se the!eof$

In his testi1on7" On2 2e the !espon%ents5 #e!sion of 'h&t suppose%l7 t!&nspi!e% in thei!

t!&ns&ction 'ith petitione!$ Acco!%in2 to hi1" he &n% his 'ife 'ent to the b&n4 b!&nch &t C&b&7&n %e

O!o Cit7 &n% loo4e% fo! Ro7 P&l&s&n" & b&n4 cle!4 the!e&t &n% tol% the l&tte! th&t the7 'e!einte!este% to bu7 t'o )/* lots$ P&l&s&n 'ent to t&l4 to L&2!ito" the b!&nch 1&n&2e!$ P&l&s&n !etu!ne%

to the spouses &n% info!1e% the1 th&t the b!&nch 1&n&2e! &2!ee% to sell the p!ope!t7 to the1$

P&l&s&n fu!the! tol% the1 th&t the7 'ill be !e?ui!e% to p&7 ten )(.* pe!cent of the pu!ch&se p!ice &s

%o'np&71ent" &%%in2 th&t if the7 'e!e to p&7 the pu!ch&se p!ice in c&sh" the7 'oul% be entitle% to &

ten )(.* pe!cent %iscount$Afte! so1e co1put&tions" !espon%ents !oun%e% up the pu!ch&se p!ice

&t P(0-"...$.. &n% pe22e% the %o'np&71ent the!efo! &t P(9"...$..$ The7 'e!e then !e?ui!e% b7

P&l&s&n to si2n & b&n4 fo!1 suppose%l7 to e=p!ess thei! fi!1 offe! to pu!ch&se the sub6ect p!ope!t7$


19/110

>HEREFORE" b7 !e&son of p!epon%e!&nce of e#i%ence" the Cou!t he!eb7 fin%s in fo! of the

pl&intiffs ) !espon%ents* &s &2&inst the %efen%&nt )petitione!s* &n% he!eb7 o!%e!s the %efen%&nt

($ To e=ecute & fin&l s&le of the lot sub6ect 1&tte! of the cont!&ct of s&le &t the o!i2in&l

&2!ee% p!ice of P(0-"...$..

/$ Defen%&nt to &ccept the b&l&nce of the pu!ch&se p!ice f!o1 the pl&intiffs

0$ Defen%&nt to p&7 1o!&l %&1&2es in the &1ount of P0."...$..

9$ Defen%&nt to !efun% the &1ount of P(."...$.. &ctu&l liti2&tion e=penses &n% to p&7

&tto!ne75s fees in the &1ount of P/."...$..$

SO ORDERED$

The!ef!o1" petitione! 'ent on &ppe&l to the Cou!t of Appe&ls in CA+,$R$ C No$ :9;(;" &n%" on

ER COURTS" CONSIDERIN,

THAT THERE >AS NO >RITTEN CONTRACT THAT >AS EER EXECUTED B THE PARTIES

IN THIS CASE" BUT RITTEN CO


20/110

THAT THE BURDEN OF PROOF THAT THERE >AS PERFECTION OF THE CONTRACT OF

SALE BET>EEN THE PARTIES BASICALL REST >ITH THE RESPONDENTS"

NOT>ITHSTANDIN, THE NON+OBECTION ON THE PART OF HEREIN PETITIONER DURIN,

THE INTRODUCTION OF THAT QPAROL EIDENCE THE AD


21/110

0$ Th&t %efen%&nt ?p'(i(io)'r@ )''r pr'*')('+ -) %i()'** (o r'/( (&' po*i(i' -)+

l'-r ('*(io) o3 pl-i)(i33 ?r'*po)+')(*@ (&-( i( %-* - p'r3'('+ o)(r-( o3 *-l'

ente!e% into b7 the fo!1e! 'ith the %efen%&nt petitione!J b&n4$(.J

Sust&inin2 the fo!e2oin2 f&ctu&l fin%in2s of the t!i&l cou!t" the &ppell&te cou!t '!ote in its

&ss&ile% %ecision of e %o not &2!ee$

Conce%e%l7" in petitions 3or r'i'% o) certiorari" ou! t&s4 is not to !e#ie' once &2&in thef&ctu&l fin%in2s of the Cou!t of Appe&ls &n% the t!i&l cou!t" but to %ete!1ine if" on the b&sis of the

f&cts thus foun%" the conclusions of l&' !e&che% &!e co!!ect o! not$

u%2in2 f!o1 the fin%in2s of the t'o )/* cou!ts belo' &n% the testi1on7 of !espon%ent F!&ncisco

On2 hi1self" i( -pp'-r* l'-r (o /* (&-( (&' (r-)*-(io) '(%'') (&' r'*po)+')(* -)+ (&'

p'(i(io)'r %-* lii('+ (o P-l-*-), o)' o3 (&' l'r* o3 p'(i(io)'r* r-)& i) C-;--) +' Oro

Ci(. L-;ri(o, (&' r-)& -)-;'r, &-+ )o p'r*o)-l or +ir'( o/)i-(io) %i(&
http://sc.judiciary.gov.ph/jurisprudence/2005/jun2005/144661.htm#_ftn10http://sc.judiciary.gov.ph/jurisprudence/2005/jun2005/144661.htm#_ftn10


22/110

r'*po)+')(* (o 'pr'** &i* -ll';'+ o)*')( (o (&' *-l' (r-)*-(io). Thus" the un%ispute%

e#i%ence sho'e% th&t it '&s P&l&s&n" & 1e!e b&n4 cle!4" &n% not the b!&nch 1&n&2e! hi1self 'ho

&ssu!e% !espon%ents th&t thei!s '&s & close% %e&l$

>e &!e #e!7 1uch &'&!e of ou! p!onounce1ent in Rural Ban of !ilaor vs. "cfe#ia"((Jin#ol#in2

& 1&n%&1us suit 'he!e the suppose% bu7e! of & fo!eclose% p!ope!t7 f!o1 & b&n4 sou2ht & cou!to!%e! to co1pel the b&n4 to issue the !e?ui!e% bo&!% !esolution confi!1in2 the s&le bet'een the

p&!ties the!ein$ The!e" this Cou!t" spe&4in2 th!u

h&s f&ile% to file &n &ns'e! to the Petition belo' 'ithin the !e2le1ent&!7 pe!io%" let &lone p!esent

e#i%ence cont!o#e!tin2 such &utho!it7$ In%ee%" 'hen one of he!ein !espon%ents"


23/110

D!""ERENCE !N TE CASE AT


24/110

!espon%ents5 siste!" 'oul% be i!!ele#&nt &n% i11&te!i&l insof&! &s !espon%ents5 o'n t!&ns&ction 'ith

the petitione! is conce!ne%$ Besi%es" &p&!t f!o1 s&7in2 th&t !espon%ents5 siste! Q1&%e & si1il&! offe!

to the petitione!J un%e! the s&1e te!1s &n% con%itions &s to th&t of the !espon%entsJ" &n% '&s

li4e'ise &ssu!e% b7 the s&1e b&n4 pe!sonnel th&t he! offe! === '&s &l!e&%7 &pp!o#e%" 'hich

e#entu&ll7 !esulte% into & Qconsu11&te% s&le bet'een )the siste!* &n% DBP" the Cou!t of Appe&ls

1&%e no fin%in2 th&t the siste!5s t!&ns&ction 'ith the petitione! '&s 1&%e e=&ctl7 un%e! the s&1eci!cu1st&nces obt&inin2 in the p!esent c&se$ In &n7 e#ent" petitione!5s fo!&ble &ction on the offe!

of !espon%ents5 siste! is h&!%l7" if e#e!" !ele#&nt &n% %ete!1in&ti#e in the !esolution of the le2&l issue

p!esente% in this c&se$

In su1" 'e c&nnot" in l&'" sust&in the he!ein ch&llen2e% issu&nces of the Cou!t of Appe&ls$

WERE"ORE" the inst&nt petition is ,RANTED &n% the &ss&ile% %ecision &n% !esolution of the

Cou!t of Appe&ls REERSED &n% SET ASIDE$ The co1pl&int file% in this c&se is &cco!%in2l7

DIS


25/110

UN KWAN


26/110

:$ In p!o#i%in2 the 2&1in2 f&cilities &n% se!#ices to these fo!ei2n pl&7e!s" PA,COR is

entitle% to !ecei#e f!o1 ABS Co!po!&tion & (/$: sh&!e in the 2!oss 'innin2s of ABS

Co!po!&tion o! ($: 1illion US %oll&!s" 'hiche#e! is hi2he!" o#e! & pl&7in2 pe!io% of - 1onths$

PA,COR h&s the option to e=ten% the pe!io%$-

Petitione!" & 3o!e&n n&tion&l" &lle2es th&t f!o1 No#e1be! (;;- to


27/110

c&sh &t the en% of e#e!7 2&1in2 pe!io% &s the7 &!e in#ento!ie% e#e!7 shift$ Un%e! PA,COR5s !ules" it

is i1possible fo! PA,COR pl&7e!s to &ccu1ul&te t'o 1illion %oll&!s 'o!th of 2&1blin2 chips &n% to

b!in2 the chips out of the c&sino p!e1ises$(0

Since PA,COR %iscl&i1e% li&bilit7 fo! the 'innin2s of pl&7e!s !ec!uite% b7 ABS Co!po!&tion &n%

!efuse% to enc&sh the 2&1blin2 chips" petitione! file% & co1pl&int fo! & su1 of 1one7 befo!e the t!i&lcou!t$(9PA,COR file% & counte!cl&i1 &2&inst petitione!$ Then" t!i&l ensue%$

On -


28/110

)e* Onl7 fo!ei2n e=ch&n2e p!esc!ibe% to fo!1 p&!t of the Philippine Inte!n&tion&l Rese!#e &n%

the follo'in2 fo!ei2n e=ch&n2e cu!!encies Aust!&li&n Doll&!" Sin2&po!e Doll&!" Hon2 3on2

Doll&!" sh&ll be use% in this 2&1in2 pit

)f* The %isbu!se1ent" &%1inist!&tion" 1&n&2e1ent &n% !eco!%in2 of fo!ei2n e=ch&n2e

cu!!encies use% in the c&sino)s* sh&ll be c&!!ie% out in &cco!%&nce 'ith e=istin2 fo!ei2ne=ch&n2e !e2ul&tions" &n% pe!io%ic&l !epo!ts of the t!&ns&ctions in such fo!ei2n e=ch&n2e

cu!!encies b7 the Co!po!&tion sh&ll be %ul7 !eco!%e% &n% !epo!te% to the Cent!&l B&n4 th!u

the %esi2n&te% A2ent B&n4 &n%

)2* The Co!po!&tion sh&ll issue the necess&!7 !ules &n% !e2ul&tions fo! the 2ui%&nce &n%

info!1&tion of pl&7e!s ?u&lifie% to p&!ticip&te in the fo!ei2n e=ch&n2e 2&1in2 pit" in o!%e! to

1&4e ce!t&in th&t the te!1s &n% con%itions &s &bo#e set fo!th &!e st!ictl7 co1plie% 'ith$

The t!i&l cou!t hel% th&t onl7 PA,COR coul% use fo!ei2n cu!!enc7 in its 2&1in2 t&bles$ >hen

PA,COR &ccepte% onl7 & fi=e% po!tion of the %oll&! e&!nin2s of ABS Co!po!&tion in the concept of &

le&se of f&cilities" PA,COR sh&!e% its f!&nchise 'ith ABS Co!po!&tion in #iol&tion of the PA,COR5sch&!te!$ Hence" the un4et A2!ee1ent is #oi%$ Since the un4et A2!ee1ent is not pe!1itte% b7

PA,COR5s ch&!te!" the 1utu&l !i2hts &n% obli2&tions of the p&!ties to this c&se 'oul% be !esol#e%

b&se% on &2enc7 &n% estoppel$(-

The t!i&l cou!t foun% th&t the petitione! '&nte% to !e%ee1 2&1blin2 chips th&t 'e!e specific&ll7 use%

b7 ABS Co!po!&tion &t its 2&1in2 t&bles$ The 2&1blin2 chips co1e in %istincti#e o!&n2e o! 7ello'

colo!s 'ith stic4e!s be&!in2 %eno1in&tions of (."... o! ("...$ The ("... 2&1blin2 chips &!e s1&lle!

in siGe &n% the 'o!%s Mno c&sh #&lueM 1&!4e% on the1$ The (."... 2&1blin2 chips %o not !eflect the

Mno c&sh #&lueM si2n$ The senio! t!e&su!7 he&% of PA,COR testifie% th&t these 'e!e the 2&1blin2

chips use% b7 the p!e#ious 6un4et ope!&to!s &n% PA,COR 1e!el7 continue% usin2 the1$ Ho'e#e!"

the 2&1blin2 chips use% in the !e2ul&! c&sino 2&1es 'e!e of & %iffe!ent ?u&lit7$

(8

The t!i&l cou!t pointe% out th&t PA,COR h&% t&4en steps to '&!n pl&7e!s b!ou2ht in b7 &ll 6un4et

ope!&to!s" inclu%in2 ABS Co!po!&tion" th&t the7 'e!e pl&7in2 un%e! speci&l !ules$ Ap&!t f!o1 the

%iffe!ent 4in%s of 2&1blin2 chips use%" the 6un4et pl&7e!s 'e!e confine% to ce!t&in 2&1in2 !oo1s$ In

these !oo1s" notices 'e!e poste% th&t 2&1blin2 chips coul% onl7 be enc&she% the!e &n% no'he!e

else$ A photo2!&ph of one such notice" p!inte% in 3o!e&n &n% En2lish" st&te% th&t the 2&1in2 !oo1

'&s e=clusi#el7 ope!&te% b7 ABS Co!po!&tion &n% th&t ABS Co!po!&tion '&s solel7 &ccount&ble fo!

&ll the chips '&2e!e% on the 2&1in2 t&bles$ Althou2h petitione! %enie% seein2 this notice" this

%iscl&i1e! h&s the effect of & ne2&ti#e e#i%ence th&t c&n h&!%l7 p!e#&il &2&inst the positi#e

&sse!tions of PA,COR offici&ls 'hose c!e%ibilit7 is &lso not open to %oubt$ The t!i&l cou!t conclu%e%

th&t petitione! h&% been &le!te% to the e=istence of these speci&l 2&1blin2 !ules" &n% the 1e!e f&ctth&t he continue% to pl&7 un%e! the s&1e !est!ictions o#e! & pe!io% of se#e!&l 1onths confi!1s his

&c?uiescence to the1$ Othe!'ise" petitione! coul% he si1pl7 chose to stop 2&1blin2$(@

In +i*i**i); p'(i(io)'r* opl-i)(, (&' (ri-l o/r( o)l/+'+ (&-( p'(i(io)'r* +'-)+

-;-i)*( PAGCOR 3or (&' r'+'p(io) o3 (&' ;-li); &ip* o/l+ )o( *(-)+. T&' (ri-l o/r(

*(-('+ (&-( p'(i(io)'r, - *(r-);'r (o (&' -;r''')( '(%'') PAGCOR -)+ A


29/110

-/(&ori( %i(& %&i& PAGCOR &-+ lo(&'+ i(* 'plo''* -)+ -;')(* i) +'-li); %i(&

p'(i(io)'r. Si)' p'(i(io)'r %-* -+' -%-r' o3 (&' *p'i-l r/l'* %&i& &' %-* pl-i); -(

(&' C-*i)o "ilipi)o, p'(i(io)'r o/l+ )o( )o% l-i (&-( &' %-* )o( o/)+ (&' $ The t!i&l

cou!t e=pl&ine% th&t in &n unl&'ful t!&ns&ction" the cou!ts 'ill e=ten% e?uit&ble !elief onl7 to & p&!t7

'ho '&s un&'&!e of &ll its %i1ensions &n% 'hose i2no!&nce of the1 e=pose% hi1 to the !is4 of

bein2 e=ploite% b7 the othe!$ >he!e the p&!ties ente! into such & !el&tionship 'ith the oppo!tunit7 to4no' &ll of its !&1ific&tions" &s in this c&se" the!e is no !oo1 fo! e?uit&ble consi%e!&tions to co1e to

the !escue of &n7 p&!t7$ The t!i&l cou!t !ule% th&t it 'oul% lee the p&!ties 'he!e the7 &!e$(;

T&' R/li); o3 (&' Co/r( o3 App'-l*

In %is1issin2 the &ppe&l" the &ppell&te cou!t &%%!esse% the fou! e!!o!s &ssi2ne% b7 petitione!$

Fi!st" petitione! 1&int&ins th&t he '&s ne#e! & 6un4et pl&7e! of ABS Co!po!&tion$ Petitione! &lso

%enies seein2 & notice th&t ce!t&in 2&1in2 !oo1s 'e!e e=clusi#el7 ope!&te% b7 entities un%e!

speci&l &2!ee1ent$/.

The CA !ule% th&t the !eco!%s %o not suppo!t petitione!5s theo!7$ Petitione!5s o'n testi1on7 !e#e&ls

th&t he en6o7e% speci&l &cco11o%&tions &t the ,!&n% Boule#&!% Hotel$ This si1il&! &cco11o%&tion

'&s e=ten%e% to pl&7e!s b!ou2ht in b7 ABS Co!po!&tion &n% othe! 6un4et ope!&to!s$ Petitione!

c&nnot %is&ssoci&te hi1self f!o1 ABS Co!po!&tion fo! it is unli4el7 th&t &n un4no'n hi2h !olle! 'oul%

be &cco!%e% choice &cco11o%&tions b7 the hotel unless the &cco11o%&tion '&s f&cilit&te% b7 &

6un4et ope!&to! 'ho en6o7e% such p!i#ile2e$/(

The CA &%%e% th&t the testi1onies of PA,COR5s e1plo7ees &ffi!1in2 th&t notices 'e!e poste% in

En2lish &n% 3o!e&n in the 2&1in2 &!e&s &!e c!e%ible in the &bsence of &n7 con#incin2 p!oof of ill

1oti#e$ Fu!the!" the specifie% 2&1in2 &!e&s use% onl7 speci&l chips th&t coul% be bou2ht &n%

e=ch&n2e% &t ce!t&in c&shie! booths in th&t &!e&$

//

Secon%" petitione! &tt&c4s the #&li%it7 of the contents of the notice$ Since the un4et A2!ee1ent is

#oi%" the notice" 'hich '&s issue% pu!su&nt to the un4et A2!ee1ent" is &lso #oi% &n% c&nnot &ffect

petitione!$/0

The CA !e&sone% th&t the t!i&l cou!t ne#e! %ecl&!e% the notice #&li% &n% neithe! %i% it enfo!ce the

contents the!eof$ The CA e1ph&siGe% th&t it '&s the &ct of c&utionin2 &n% &le!tin2 the pl&7e!s th&t

'&s uphel%$ The t!i&l cou!t !ule% th&t si2ns &n% '&!nin2s 'e!e in pl&ce to info!1 the public"

petitione! inclu%e%" th&t speci&l !ules &pplie% to ce!t&in 2&1in2 &!e&s e#en if the #e!7 &2!ee1ent

2i#in2 !ise to these !ules is #oi%$/9

Thi!%" petitione! t&4es the position th&t &n i1plie% &2enc7 e=iste% bet'een PA,COR &n% ABS

Co!po!&tion$/:

The CA %is&2!ee% 'ith petitione!5s #ie'$ A #oi% cont!&ct h&s no fo!ce &n% effect f!o1 the #e!7

be2innin2$ It p!o%uces no effect eithe! &2&inst o! in fo! of &n7one$ Neithe! c&n it c!e&te" 1o%if7 o!

e=tin2uish the 6u!i%ic&l !el&tion to 'hich it !efe!s$ Necess&!il7" the un4et A2!ee1ent" bein2 #oi% f!o1

the be2innin2" c&nnot 2i#e !ise to &n i1plie% &2enc7$ The CA e=pl&ine% th&t it c&nnot see ho' the
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p!inciple of i1plie% &2enc7 c&n be &pplie% to this c&se$ A!ticle (@@0/-of the Ci#il Co%e &pplies onl7

to & situ&tion 'he!e the &2ent is &utho!iGe% b7 the p!incip&l to ente! into & p&!ticul&! t!&ns&ction" but

inste&% of cont!&ctin2 on beh&lf of the p!incip&l" the &2ent &cts in his o'n n&1e$/8

The CA conclu%e% th&t no such le2&l fiction e=iste% bet'een PA,COR &n% ABS Co!po!&tion$

PA,COR ente!e% into & un4et A2!ee1ent to le&se to ABS Co!po!&tion ce!t&in 2&1in2 &!e&s$ It '&sne#e! PA,COR5s intention to %e&l 'ith the 6un4et pl&7e!s$ Neithe! %i% PA,COR inten% ABS

Co!po!&tion to !ep!esent PA,COR in %e&lin2 'ith the 6un4et pl&7e!s$ Rep!esent&tion is the b&sis of

&2enc7 but unfo!tun&tel7 fo! petitione! none is foun% in this c&se$/@

The CA &%%e% th&t the speci&l 2&1in2 chips" 'hile belon2in2 to PA,COR" &!e 1e!e &ccesso!ies in

the #oi% un4et A2!ee1ent 'ith ABS Co!po!&tion$ In A!ticle (@@0" the ph!&se Mthin2s belon2in2 to the

p!incip&lM !efe!s onl7 to those thin2s o! p!ope!ties sub6ect of & p&!ticul&! t!&ns&ction &utho!iGe% b7

the p!incip&l to be ente!e% into b7 its pu!po!te% &2ent$ Necess&!il7" the 2&1blin2 chips bein2 1e!e

inci%ents to the #oi% le&se &2!ee1ent c&nnot f&ll un%e! this c&te2o!7$/;

The CA !ule% th&t A!ticle /(:/

0.

of the Ci#il Co%e is &lso not &pplic&ble$ The ci!cu1st&nces !el&tin2to negotioru# gestio&!e non+e=istent to '&!!&nt &n officious 1&n&2e! to t&4e o#e! the 1&n&2e1ent

&n% &%1inist!&tion of PA,COR$0(

Fou!th" petitione! &s4s fo! e?uit&ble !elief$0/

The CA e=pl&ine% th&t &lthou2h petitione! '&s ne#e! & p&!t7 to the #oi% un4et A2!ee1ent" petitione!

c&nnot %en7 o! fei2n blin%ness to the si2ns &n% '&!nin2s &ll &!oun% hi1$ The notices" the speci&l

2&1blin2 chips" &n% the sep&!&te 2&1in2 &!e&s 'e!e 1o!e th&n enou2h to &le!t hi1 th&t he '&s

pl&7in2 un%e! %iffe!ent te!1s$ Petitione! pe!siste% &n% continue% to pl&7 in the c&sino$ Petitione! &lso

en6o7e% the pe!4s e=ten%e% to 6un4et pl&7e!s of ABS Co!po!&tion$ Fo! f&ilin2 to hee% these si2ns &n%

'&!nin2s" petitione! c&n no lon2e! be pe!1itte% to cl&i1 e?uit&ble !elief$ >hen p&!ties %o not co1eto cou!t 'ith cle&n h&n%s" the7 c&nnot be &llo'e% to p!ofit f!o1 thei! o'n '!on2 %oin2$00

T&' !**/'*

Petitione!s !&ise th!ee issues in this petition

($ >hethe! the CA e!!e% in hol%in2 th&t PA,COR is not li&ble to petitione!" %is!e2&!%in2 the

%oct!ine of i1plie% &2enc7" o! &2enc7 b7 estoppel

/$ >hethe! the CA e!!e% in usin2 intent of the cont!&ctin2 p&!ties &s the test fo! c!e&tion of

&2enc7" 'hen such is not !ele#&nt since the inst&nt c&se in#ol#es li&bilit7 of the p!esu1e%p!incip&l in i1plie% &2enc7 to & thi!% p&!t7 &n%

0$ >hethe! the CA e!!e% in f&ilin2 to consi%e! th&t PA,COR !&tifie%" o! &t le&st &%opte%" the

&cts of the &2ent" ABS Co!po!&tion$09

T&' R/li); o3 (&' Co/r(
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The petition l&c4s 1e!it$

Courts will not enforce debts arising from illegal gambling

,&1blin2 is p!ohibite% b7 the l&'s of the Philippines &s specific&ll7 p!o#i%e% in A!ticles (;: to (;; of

the Re#ise% Pen&l Co%e" &s &1en%e%$ ,&1blin2 is &n &ct be7on% the p&le of 2oo% 1o!&ls"

0:

&n% isthus p!ohibite% &n% punishe% to !ep!ess &n e#il th&t un%e!1ines the soci&l" 1o!&l" &n% econo1ic

2!o'th of the n&tion$0-P!esi%enti&l Dec!ee No$ (-./ )PD (-./*"08'hich 1o%ifie% A!ticles (;:+(;; of

the Re#ise% Pen&l Co%e &n% !epe&le% inconsistent p!o#isions"0@p!esc!ibe% stiffe! pen&lties on ille2&l

2&1blin2$0;

!SSUE$ %&'(&'r PAGCOR -) -li+l *&-r' i(* 3r-)&i*' %i(& =/)'( op'r-(or* (o op'r-('

;-li); -*i)o* i) (&' o/)(r.

ELD$

As & !ule" &ll fo!1s of 2&1blin2 &!e ille2&l$ The onl7 fo!1 of 2&1blin2 &llo'e% b7 l&' is th&tstipul&te% un%e! P!esi%enti&l Dec!ee No$ (@-;" 'hich 2e PA,COR its f!&nchise to 1&int&in &n%

ope!&te 2&1blin2 c&sinos$ The issue then tu!ns on 'hethe! PA,COR c&n #&li%l7 sh&!e its f!&nchise

'ith 6un4et ope!&to!s to ope!&te 2&1blin2 c&sinos in the count!7$ Section 0)h* of PA,COR5s ch&!te!

st&tes

Section 0$ Co!po!&te Po'e!s$ + The Co!po!&tion sh&ll he the follo'in2 po'e!s &n% functions"

&1on2 othe!s

= = =

& (o ')('r i)(o, -', p'r3or, -)+ -rr o/( o)(r-(* o3 ''r i)+ -)+ 3or -) l-%3/lp/rpo*' p'r(-i)i); (o (&' /*i)'** o3 (&' Corpor-(io), or i) -) -))'r i)i+')( (&'r'(o, -*

pri)ip-l, -;')( or o(&'r%i*', %i(& -) p'r*o), 3ir, -**oi-(io), or orpor-(io).

= = =

The un4et A2!ee1ent 'oul% be #&li% if un%e! Section 0)h* of PA,COR5s ch&!te!" PA,COR coul%

sh&!e its 2&1blin2 f!&nchise 'ith &nothe! entit7$ In Sen&to! &'o!s4i #$ Phil$ A1use1ent &n%

,&1in2 Co!p$"9.the Cou!t %iscusse% the e=tent of the 2!&nt of the le2isl&ti#e f!&nchise to PA,COR

on its &utho!it7 to ope!&te 2&1blin2 c&sinos

A le2isl&ti#e f!&nchise is & speci&l p!i#ile2e 2!&nte% b7 the st&te to co!po!&tions$ It is & p!i#ile2e ofpublic conce!n 'hich c&nnot be e=e!cise% &t 'ill &n% ple&su!e" but shoul% be !ese!#e% fo! public

cont!ol &n% &%1inist!&tion" eithe! b7 the 2o#e!n1ent %i!ectl7" o! b7 public &2ents" un%e! such

con%itions &n% !e2ul&tions &s the 2o#e!n1ent 1&7 i1pose on the1 in the inte!est of the public$ It is

Con2!ess th&t p!esc!ibes the con%itions on 'hich the 2!&nt of the f!&nchise 1&7 be 1&%e$ Thus the

1&nne! of 2!&ntin2 the f!&nchise" to 'ho1 it 1&7 be 2!&nte%" the 1o%e of con%uctin2 the business"

the ch&!te! &n% the ?u&lit7 of the se!#ice to be !en%e!e% &n% the %ut7 of the 2!&ntee to the public in

e=e!cisin2 the f!&nchise &!e &l1ost &l'&7s %efine% in cle&! &n% une?ui#oc&l l&n2u&2e$
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32/110

A3('r - ir/*p'( o)*i+'r-(io) o3 (&' 3or';oi); +i*/**io) -)+ (&' o)(')+i); po*i(io)*

o3 (&' p-r(i'*, %' &ol+ (&-( PAGCOR &-* -('+ 'o)+ (&' lii(* o3 i(* -/(&ori( %&') i(

p-**'+ o) or *&-r'+ i(* 3r-)&i*' (o SAGE.

In the Del


33/110

RA ;9@8 &1en%e% the PA,COR ch&!te!" 2!&ntin2 PA,COR the po'e! to ente! into speci&l

&2!ee1ent 'ith thi!% p&!ties to sh&!e the p!i#ile2es un%e! its f!&nchise fo! the ope!&tion of 2&1blin2

c&sinos

Section ($ The Philippine A1use1ent &n% ,&1in2 Co!po!&tion )PA,COR* f!&nchise 2!&nte% un%e!

P!esi%enti&l Dec!ee No$ (@-; othe!'ise 4no'n &s the PA,COR Ch&!te!" is he!eb7 fu!the! &1en%e%to !e&% &s follo's

= = =

)/* Section 0)h* is he!eb7 &1en%e% to !e&% &s follo's

MSEC$ 0$ Co!po!&te Po'e!s$ +

M= = =

M)h* to ente! into" 1&4e" conclu%e" pe!fo!1" &n% c&!!7 out cont!&cts of e#e!7 4in% &n% n&tu!e &n% fo!&n7 l&'ful pu!pose 'hich &!e necess&!7" &pp!op!i&te" p!ope! o! inci%ent&l to &n7 business o!

pu!pose of the PA,COR" inclu%in2 but not li1ite% to in#est1ent &2!ee1ents" 6oint #entu!e

&2!ee1ents" 1&n&2e1ent &2!ee1ents" &2enc7 &2!ee1ents" 'hethe! &s p!incip&l o! &s &n &2ent"

1&npo'e! suppl7 &2!ee1ents" o! &n7 othe! si1il&! &2!ee1ents o! &!!&n2e1ents 'ith &n7 pe!son"

fi!1" &ssoci&tion o! co!po!&tion$M )Bol%f&cin2 supplie%*

PA,COR sou2ht the &1en%1ent of its ch&!te! p!ecisel7 to &%%!ess &n% !e1e%7 the le2&l

i1pe%i1ent !&ise% in Sen&to! &'o!s4i #$ Phil$ A1use1ent &n% ,&1in2 Co!p$

Unfo!tun&tel7 fo! petitione!" RA ;9@8 c&nnot be &pplie% to the p!esent c&se$ The un4et A2!ee1ent

'&s ente!e% into bet'een PA,COR &n% ABS Co!po!&tion on /: Ap!il (;;- 'hen the PA,CORch&!te! then p!e#&ilin2 )PD (@-;* p!ohibite% PA,COR f!o1 ente!in2 into &n7 &!!&n2e1ent 'ith &

thi!% p&!t7 th&t 'oul% &llo' such p&!t7 to &cti#el7 p&!ticip&te in the c&sino ope!&tions$

It is & b&sic p!inciple th&t l&'s shoul% onl7 be &pplie% p!ospecti#el7 unless the le2isl&ti#e intent to

2i#e the1 !et!o&cti#e effect is e=p!essl7 %ecl&!e% o! is necess&!il7 i1plie% f!o1 the l&n2u&2e

use%$99RA ;9@8 %oes not p!o#i%e fo! &n7 !et!o&cti#it7 of its p!o#isions$ All l&'s ope!&te p!ospecti#el7

&bsent & cle&! cont!&!7 l&n2u&2e in the te=t"9:&n% th&t in e#e!7 c&se of %oubt" the %oubt 'ill be

!esol#e% &2&inst the !et!o&cti#e ope!&tion of l&'s$9-

Thus" petitione! c&nnot &il of the p!o#isions of RA ;9@8 &s this '&s not the l&' 'hen the &cts

2i#in2 !ise to the cl&i1e% li&bilities too4 pl&ce$ This 1&4es the 2&1blin2 &cti#it7 p&!ticip&te% in b7petitione! ille2&l$ Petitione! c&nnot sue PA,COR to !e%ee1 the c&sh #&lue of the 2&1blin2 chips o!

!eco#e! %&1&2es &!isin2 f!o1 &n ille2&l &cti#it7 fo! t'o !e&sons$ Fi!st" petitione! en2&2e% in

2&1blin2 'ith ABS Co!po!&tion &n% not 'ith PA,COR$ Secon%" the cou!t c&nnot &ssist petitione! in

enfo!cin2 &n ille2&l &ct$


34/110

P'(i(io)'r l-i* (&-( &' i* - (&ir+ p-r( pro''+i); -;-i)*( (&' li-ili( o3 - pr'*/'+

pri)ip-l -)+ l-i* r'li'3, -l('r)-(i'l, o) (&' -*i* o3 ipli'+ -;') or -;')

'*(opp'l$

No'" to &%%!ess the issues !&ise% b7 petitione! in his petition" petitione! cl&i1s th&t he is & thi!% p&!t7

p!ocee%in2 &2&inst the li&bilit7 of & p!esu1e% p!incip&l &n% cl&i1s !elief" &lte!n&ti#el7" on the b&sis ofi1plie% &2enc7 o! &2enc7 b7 estoppel$

Ar(il' 1869 o3 (&' Ciil Co+' *(-('* (&-( ipli'+ -;') is %e!i#e% f!o1 the &cts of the p!incip&l"

f!o1 his silence o! l&c4 of &ction" o! his f&ilu!e to !epu%i&te the &2enc7" 4no'in2 th&t &nothe! pe!son

is &ctin2 on his beh&lf 'ithout &utho!it7$ I1plie% &2enc7" bein2 &n &ctu&l &2enc7" is & f&ct to be

p!o#e% b7 %e%uctions o! infe!ences f!o1 othe! f&cts$98

On the othe! h&n%" &pp&!ent &utho!it7 is b&se% on estoppel &n% c&n &!ise f!o1 t'o inst&nces. "ir*(,

(&' pri)ip-l - )o%i);l p'ri( (&' -;')( (o &ol+ &i*'l3 o/( -* &-i); */& -/(&ori( "

&n% the p!incip&l beco1es estoppe% to cl&i1 th&t the &2ent %oes not he such &utho!it7$ S'o)+,

(&' pri)ip-l - lo(&' (&' -;')( %i(& (&' i)+ii- o3 -/(&ori( -* (o l'-+ - r'-*o)-lpr/+')( p'r*o) (o 'li'' (&-( (&' -;')( -(/-ll &-* */& -/(&ori( $9@In &n &2enc7 b7

estoppel" the!e is )o -;') -( -ll,but the one &ssu1in2 to &ct &s &2ent h&s &pp&!ent o!

ostensible" &lthou2h not !e&l" &utho!it7 to !ep!esent &nothe!$9;

The l&' 1&4es no p!esu1ption of &2enc7 &n% p!o#in2 its e=istence" n&tu!e &n% e=tent is incu1bent

upon the pe!son &lle2in2 it$:.>hethe! o! not &n &2enc7 h&s been c!e&te% is & ?uestion to be

%ete!1ine% b7 the f&ct th&t one !ep!esents &n% is &ctin2 fo! &nothe!$ :(

A(* -)+ o)+/( o3 PAGCOR )';-('* (&' 'i*(')' o3 -) ipli'+ -;') or -) -;')

'*(opp'l

Petitione! &lle2es th&t the!e is &n i1plie% &2enc7$ Alte!n&ti#el7" petitione! cl&i1s th&t e#en &ssu1in2

th&t no &ctu&l &2enc7 e=iste% bet'een PA,COR &n% ABS Co!po!&tion" the!e is still &n &2enc7 b7

estoppel b&se% on the &cts &n% con%uct of PA,COR sho'in2 &pp&!ent &utho!it7 in fo! of ABS

Co!po!&tion$ Petitione! st&tes th&t one f&cto! 'hich %istin2uishes &2enc7 f!o1 othe! le2&l p!ecepts is

cont!ol &n% the follo'in2 un%ispute% f&cts sho' & !el&tionship of i1plie% &2enc7

($ Th!ee floo!s of the ,!&n% Boule#&!% Hotel:/'e!e le&se% to PA,COR fo! con%uctin2

2&1blin2 ope!&tions:0

/$ Of the th!ee floo!s" PA,COR &llo'e% ABS Co!po!&tion to use one 'hole floo! fo! fo!ei2n

e=ch&n2e 2&1blin2" con%ucte% b7 PA,COR %e&le!s usin2 PA,COR f&cilities" ope!&te% b7PA,COR e1plo7ees &n% usin2 PA,COR chips be&!in2 the PA,COR lo2o:9

0$ PA,COR cont!olle% the !ele&se" 'ith%!&'&l &n% !etu!n of &ll the 2&1blin2 chips 2i#en to

ABS Co!po!&tion in th&t p&!t of the c&sino &n% &t the en% of the %&7" PA,COR con%ucte% &n

in#ento!7 of the 2&1blin2 chips::
http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt47http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt48http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt48http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt49http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt50http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt51http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt52http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt52http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt52http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt53http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt53http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt54http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt55http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt47http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt48http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt49http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt50http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt51http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt52http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt53http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt54http://www.lawphil.net/judjuris/juri2009/dec2009/gr_163553_2009.html#fnt55


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9$ ABS Co!po!&tion &ccounte% fo! &ll 2&1blin2 chips 'ith the Co11ission on Au%it )COA*"

the offici&l &u%ito! of PA,COR:-

:$ PA,COR enfo!ce%" th!ou2h its o'n 1&n&2e!" &ll the !ules &n% !e2ul&tions on the

ope!&tion of the 2&1blin2 pit use% b7 ABS Co!po!&tion$:8

Petitione!5s &!2u1ent is cle&!l7 1ispl&ce%$ The b&sis fo! &2enc7 is !ep!esent&tion":@th&t is" the &2ent

&cts fo! &n% on beh&lf of the p!incip&l on 1&tte!s 'ithin the scope of his &utho!it7 &n% s&i% &cts he

the s&1e le2&l effect &s if the7 'e!e pe!son&ll7 e=ecute% b7 the p!incip&l$:;On the p&!t of the

p!incip&l" the!e 1ust be &n &ctu&l intention to &ppoint o! &n intention n&tu!&ll7 infe!&ble f!o1 his

'o!%s o! &ctions" 'hile on the p&!t of the &2ent" the!e 1ust be &n intention to &ccept the

&ppoint1ent &n% &ct on it$-.Absent such 1utu&l intent" the!e is 2ene!&ll7 no &2enc7$-(

T&'r' i* )o ipli'+ -;') i) (&i* -*' '-/*' PAGCOR +i+ )o( &ol+ o/( (o (&' p/li -*

(&' pri)ip-l o3 A


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petitione! c&nnot cl&i1 2oo% f&ith th&t he belie#e% he '&s %e&lin2 'ith PA,COR$ Petitione! c&nnot

be consi%e!e% &s &n innocent thi!% p&!t7 &n% he c&nnot cl&i1 entitle1ent to e?uit&ble !elief &s 'ell$

Fo! his thi!% &n% fin&l &ssi2ne% e!!o!" petitione! &sse!ts th&t PA,COR !&tifie% the &cts of ABS

Co!po!&tion$

The t!i&l cou!t h&s %ecl&!e%" &n% 'e &ffi!1" th&t the un4et A2!ee1ent is #oi%$ A #oi% o! ine=istent

cont!&ct is one 'hich h&s no fo!ce &n% effect f!o1 the #e!7 be2innin2$ Hence" it is &s if it h&s ne#e!

been ente!e% into &n% c&nnot be #&li%&te% eithe! b7 the p&ss&2e of ti1e o! b7 !&tific&tion$-9A!ticle

(9.; of the Ci#il Co%e p!o#i%es th&t cont!&cts e=p!essl7 p!ohibite% o! %ecl&!e% #oi% b7 l&'" such &s

2&1blin2 cont!&cts" Mc&nnot be !&tifie%$M-:

>HEREFORE" 'e DEN the petition$ >e AFFIR< the Cou!t of Appe&ls5 Decision %&te% /8


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SUPREME COURT

L!ARES -)+ GRACE CR!ST!AN !G SCOOL, Petitione!s"

#s$

PAUL SC!P -)+ MERR!TTO L!M, Respon%ents$

D E C I S I O N

PANGAN!


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MThe SEC !ule% &2&inst the petitione!s solel7 on the b&sis of & (;@; SEC Opinion th&t %i% not e#en

in#ol#e & non(stoc corporation&s petitione! ,CHS$

MThe Hono!&ble Cou!t of Appe&ls on the othe! h&n% si1pl7 !efuse% to !esol#e this ?uestion &n%

inste&% %is1isse% the petition fo! !e#ie' on & technic&lit7 the f&ilu!e to ti1el7 sub1it &n SPA f!o1

the petitione!s &utho!iGin2 thei!co(petitioner P&%ill&" thei! counsel &n% also a petitioner befo!e theCou!t of Appe&ls" to si2n the petition on beh&lf of the !est of the petitione!s$

MPetitione!s hu1bl7 sub1it th&t the &ction of both the SEC &n% the Cou!t of Appe&ls &!e not in

&cco!% 'ith l&' p&!ticul&!l7 the p!onounce1ents of this Hono!&ble Cou!t in -scorpi*o v. niversit/ of

Baguio )0.- SCRA 9;8*"Ro$ern Develop#ent Corporation v. 0uitain )0(: SCRA (:."* &n% !C

-ngineering, Inc. v. 12RC" )0-. SCRA (@0*$ Due cou!se shoul% he been 2i#en the petition belo'

&n% the 1e!its of the c&se %eci%e% in petitione!s5 fo!$M (8

In su1" the issues 1&7 be st&te% si1pl7 in this 'ise (* 'hethe! the CA e!!e% in %en7in2 the Petition

belo'" on the b&sis of & %efecti#e e!ific&tion &n% Ce!tific&tion &n% /* 'hethe! %e&% 1e1be!s

shoul% still be counte% in the %ete!1in&tion of the ?uo!u1" fo! pu!poses of con%uctin2 the &nnu&l1e1be!s5 1eetin2$

The Cou!t5s Rulin2

The p!esent Petition is p&!tl7 1e!ito!ious$

P!oce%u!&l Issue

e!ific&tion &n% Ce!tific&tion of Non+Fo!u1 Shoppin2

The Petition befo!e the CA '&s initi&ll7 fl&'e%" bec&use the e!ific&tion &n% Ce!tific&tion of Non+Fo!u1 Shoppin2 'e!e si2ne% b7 onl7 one" not b7 all"ofthe petitione!s fu!the!" it f&ile% to sho' p!oof

th&t the si2n&to!7 '&s &utho!iGe% to si2n on beh&lf of &ll of the1$ Subse?uentl7" ho'e#e!" petitione!s

sub1itte% & Speci&l Po'e! of Atto!ne7" &ttestin2 th&t Att7$ P&%ill& '&s &utho!iGe% to file the &ction on

thei! beh&lf$ (@

In the inte!est of subst&nti&l 6ustice" this initi&l p!oce%u!&l l&pse 1&7 be e=cuse%$ (;The!e &ppe&!s to

be no intention to ci!cu1#ent the nee% fo! p!ope! #e!ific&tion &n% ce!tific&tion" 'hich &!e &i1e% &t

&ssu!in2 the t!uthfulness &n% co!!ectness of the &lle2&tions in the Petition fo! Re#ie' &n% &t

%iscou!&2in2 fo!u1 shoppin2$ /.


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,ene!&ll7" stoc4hol%e!s5 o! 1e1be!s5 1eetin2s &!e c&lle% fo! the pu!pose of electin2 %i!ecto!s o!

t!ustees /0&n% t!&ns&ctin2 so1e othe! business c&llin2 fo! o! !e?ui!in2 the &ction o! consent of the

sh&!ehol%e!s o! 1e1be!s"/9such &s the &1en%1ent of the &!ticles of inco!po!&tion &n% b7l&'s" s&le

o! %isposition of &ll o! subst&nti&ll7 &ll co!po!&te &ssets" consoli%&tion &n% 1e!2e! &n% the li4e" o!

&n7 othe! business th&t 1&7 p!ope!l7 co1e befo!e the 1eetin2$

Un%e! the Co!po!&tion Co%e" stoc4hol%e!s o! 1e1be!s pe!io%ic&ll7 elect the bo&!% of %i!ecto!s o!

t!ustees" 'ho &!e ch&!2e% 'ith the 1&n&2e1ent of the co!po!&tion$ /:The bo&!%" in tu!n" pe!io%ic&ll7

elects office!s to c&!!7 out 1&n&2e1ent functions on & %&7+to+%&7 b&sis$ As o'ne!s" thou2h" the

stoc4hol%e!s o! 1e1be!s he !esi%u&l po'e!s o#e! fun%&1ent&l &n% 1&6o! co!po!&te ch&n2es$

>hile stoc4hol%e!s &n% 1e1be!s )in so1e inst&nces* &!e entitle% to !ecei#e p!ofits" the

1&n&2e1ent &n% %i!ection of the co!po!&tion &!e lo%2e% 'ith thei! !ep!esent&ti#es &n% &2ents ++ the

bo&!% of %i!ecto!s o! t!ustees$ /-In othe! 'o!%s" &cts of 1&n&2e1ent pe!t&in to the bo&!% &n% those

of o'ne!ship" to the stoc4hol%e!s o! 1e1be!s$ In the l&tte! c&se" the bo&!% c&nnot &ct &lone" but

1ust see4 &pp!o#&l of the stoc4hol%e!s o! 1e1be!s$ /8

Confo!1&bl7 'ith the fo!e2oin2 p!inciples" one of the 1ost i1po!t&nt !i2hts of & ?u&lifie% sh&!ehol%e!

o! 1e1be! is the !i2ht

to #ote ++ eithe! pe!son&ll7 o! b7 p!o=7 ++ fo! the %i!ecto!s o! t!ustees 'ho &!e to 1&n&2e the

co!po!&te &ff&i!s$/@The !i2ht to choose the pe!sons 'ho 'ill %i!ect" 1&n&2e &n% ope!&te the

co!po!&tion is si2nific&nt" bec&use it is the 1&in '&7 in 'hich & stoc4hol%e! c&n he & #oice in the

1&n&2e1ent of co!po!&te &ff&i!s" o! in 'hich & 1e1be! in & nonstoc4 co!po!&tion c&n he & s&7 on

ho' the pu!poses &n% 2o&ls of the co!po!&tion 1&7 be &chie#e%$ /;Once the %i!ecto!s o! t!ustees

&!e electe%" the stoc4hol%e!s o! 1e1be!s !elin?uish co!po!&te po'e!s to the bo&!% in &cco!%&nce

'ith l&'$

In the &bsence of &n e=p!ess ch&!te! o! st&tuto!7 p!o#ision to the cont!&!7" the 2ene!&l !ule is th&te#e!7 1e1be! of & nonstoc4 co!po!&tion" &n% e#e!7 le2&l o'ne! of sh&!es in & stoc4 co!po!&tion"

h&s & !i2ht to be p!esent &n% to #ote in &ll co!po!&te 1eetin2s$ Con#e!sel7" those 'ho &!e not

stoc4hol%e!s o! 1e1be!s he no !i2ht to #ote$ 0.otin2 1&7 be e=p!esse% pe!son&ll7" o! th!ou2h

p!o=ies 'ho #ote in thei! !ep!esent&ti#e c&p&cities$ 0(,ene!&ll7" the !i2ht to be p!esent &n% to #ote in

& 1eetin2 is %ete!1ine% b7 the ti1e in 'hich the 1eetin2 is hel%$ 0/

Section :/ of the Co!po!&tion Co%e st&tes

MSection :/$ uo!u1 in


41/110

subsc!ibe!s o! stoc4hol%e!s" 'hethe! o! not full7 o! p&!ti&ll7 p&i%" e=cept t!e&su!7 sh&!es$M

)Un%e!sco!in2 supplie%*

The Right to Vote in

Stock Corporations

The !i2ht to #ote is inhe!ent in &n% inci%ent&l to the o'ne!ship of co!po!&te stoc4s$00It is settle% th&t

unissue% stoc4s 1&7 not be #ote% o! consi%e!e% in %ete!1inin2 'hethe! & ?uo!u1 is p!esent in &

stoc4hol%e!s5 1eetin2" o! 'hethe! & !e?uisite p!opo!tion of the stoc4 of the co!po!&tion is #ote% to

&%opt & ce!t&in 1e&su!e o! &ct$ Onl7 stoc4 &ctu&ll7 issue% &n% outst&n%in2 1&7 be #ote%$09Un%e!

Section - of the Co!po!&tion Co%e" e&ch sh&!e of stoc4 is entitle% to #ote" unless othe!'ise p!o#i%e%

in the &!ticles of inco!po!&tion o! %ecl&!e% %elin?uent 0:un%e! Section -8 of the Co%e$

Neithe! the stoc4hol%e!s no! the co!po!&tion c&n #ote o! !ep!esent sh&!es th&t he ne#e! p&sse% to

the o'ne!ship of stoc4hol%e!s o!" hin2 so p&sse%" he &2&in been pu!ch&se% b7 the

co!po!&tion$

0-

These sh&!es &!e not to be t&4en into consi%e!&tion in %ete!1inin2 1&6o!ities$ >henthe l&' spe&4s of &

2i#en p!opo!tion of the stoc4" it 1ust be const!ue% to 1e&n the sh&!es th&t he p&sse% f!o1 the

co!po!&tion" &n% th&t 1&7 be #ote%$ 08

Section - of the Co!po!&tion Co%e" in p&!t" p!o#i%es

MSection -$ Cl&ssific&tion of sh&!es$ The sh&!es of stoc4 of stoc4 co!po!&tions 1&7 be %i#i%e% into

cl&sses o! se!ies of sh&!es" o! both" &n7 of 'hich cl&sses o! se!ies of sh&!es 1&7 he such !i2hts"

p!i#ile2es o! !est!ictions &s 1&7 be st&te% in the &!ticles of inco!po!&tion P!o#i%e%" Th&t no sh&!e

1&7 be %ep!i#e% of #otin2 !i2hts e=cept those cl&ssifie% &n% issue% &s Mp!efe!!e%M o! M!e%ee1&bleM

sh&!es" unless othe!'ise p!o#i%e% in this Co%e P!o#i%e%" fu!the!" th&t the!e sh&ll &l'&7s be & cl&sso! se!ies of sh&!es 'hich he co1plete #otin2 !i2hts$

= = = = = = = = =

M>he!e the &!ticles of inco!po!&tion p!o#i%e fo! non+#otin2 sh&!es in the c&ses &llo'e% b7 this Co%e"

the hol%e!s of such sh&!es sh&ll ne#e!theless be entitle% to #ote on the follo'in2 1&tte!s

($ A1en%1ent of the &!ticles of inco!po!&tion

/$ A%option &n% &1en%1ent of b7+l&'s

0$ S&le" le&se" e=ch&n2e" 1o!t2&2e" ple%2e o! othe! %isposition of &ll o! subst&nti&ll7 &ll of the

co!po!&tion p!ope!t7

9$ Incu!!in2" c!e&tin2 o! inc!e&sin2 bon%e% in%ebte%ness

:$ Inc!e&se o! %ec!e&se of c&pit&l stoc4
http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt33http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt33http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt33http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt34http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt34http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt34http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt35http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt36http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt36http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt37http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt33http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt34http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt35http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt36http://www.lawphil.net/judjuris/juri2006/aug2006/gr_153468_2006.html#fnt37


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-$


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Hin2 thus %ete!1ine% th&t the ?uo!u1 in & 1e1be!s5 1eetin2 is to be !ec4one% &s the &ctu&l

nu1be! of 1e1be!s of the co!po!&tion" the ne=t ?uestion to !esol#e is 'h&t h&ppens in the e#ent of

the %e&th of one of the1$

In stoc4 co!po!&tions" sh&!ehol%e!s 1&7 2ene!&ll7 t!&nsfe! thei! sh&!es$ Thus" on the %e&th of &

sh&!ehol%e!" the e=ecuto! o! &%1inist!&to! %ul7 &ppointe% b7 the Cou!t is #este% 'ith the le2&l title tothe stoc4 &n% entitle% to #ote it$ Until & settle1ent &n% %i#ision of the est&te is effecte%" the stoc4s of

the %ece%ent &!e hel% b7 the &%1inist!&to! o! e=ecuto!$99

On the othe! h&n%" 1e1be!ship in &n% &ll !i2hts &!isin2 f!o1 & nonstoc4 co!po!&tion &!e pe!son&l

&n% non+t!&nsfe!&ble" unless the &!ticles of inco!po!&tion o! the b7l&'s of the co!po!&tion p!o#i%e

othe!'ise$ 9:In othe! 'o!%s" the %ete!1in&tion of 'hethe! o! not M%e&% 1e1be!sM &!e entitle% to

e=e!cise thei! #otin2 !i2hts )th!ou2h thei! e=ecuto! o! &%1inist!&to!*" %epen%s on those &!ticles of

inco!po!&tion o! b7l&'s$

U)+'r (&'


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fille% up ++ eithe! b7 the !e1&inin2 %i!ecto!s constitutin2 & ?uo!u1" o! b7 the stoc4hol%e!s o!

1e1be!s in & !e2ul&! o! speci&l 1eetin2 c&lle% fo! the pu!pose$ 9;

T&' 'l'(io)>

o3 (&' 3o/r (r/*(''* -))o( ' l';-ll /p&'l+ 3or (&' oio/* r'-*o) (&-( i( %-* &'l+ i) -)

-))/-l ''(i); o3 (&' ''r*, )o( o3 (&' o-r+ o3 (r/*(''*$ >e &!e not un1in%ful of the f&ct

th&t the 1e1be!s of ,CHS the1sel#es &lso constitute the t!ustees" but 'e c&nnot i2no!e the ,CHS

b7l&' p!o#ision" 'hich specific&ll7 p!esc!ibes th&t #&c&ncies in the bo&!% 1ust be fille% up b7 the

!e1&inin2 t!ustees$ In othe! 'o!%s" these !e1&inin2 1e1be!+t!ustees #ust sit as a $oardin o!%e! to

#&li%l7 elect the ne' ones$

In%ee%" the!e is & 'ell+%efine% %istinction bet'een & co!po!&te &ct to be %one b7 the bo&!% &n% th&t

b7 the constituent 1e1be!s of the co!po!&tion$ T&' o-r+ o3 (r/*(''* /*( -(, )o( i)+ii+/-ll

or *'p-r-('l, /( -* - o+ i) - l-%3/l ''(i);$ On the othe! h&n%" in thei! &nnu&l 1eetin2" the1e1be!s 1&7 be !ep!esente% b7 thei! !especti#e p!o=ies" &s in the conteste% &nnu&l 1e1be!s5

1eetin2 of ,CHS$

>HEREFORE" the Petition is p&!tl7 &R'T!"$The &ss&ile% Resolutions of the Cou!t of Appe&ls

&!e he!eb7 REERSED AND SET ASIDE$ The !e1&inin2 1e1be!s of the bo&!% of t!ustees of ,!&ce

Ch!isti&n Hi2h School ),CHS* 1&7 con#ene &n% fill up the #&c&ncies in the bo&!%" in &cco!%&nce

'ith this Decision$ No p!onounce1ent &s to costs in this inst&nce$

SO ORDERED$

ARTEM!O . PANGAN!


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SUPREME COURT


46/110

Conse?uentl7" f!o1 &nu&!7 (;;- to Dece1be! (;;@" petitione!s !ecei#e% thei! co!!espon%in2 RATA

in the tot&l &1ount of P(":-:"...$..$

On une 8" (;;;" then PICCI Co!po!&te Au%ito! A%el&i%& A$ Al%o#ino issue% Notice of Dis&llo'&nce

No$ ;;+..(+(.( );-+;@*"-&%%!esse% to petitione! A!&celi E$ ill&nue#& )th!ou2h then OIC Sus&n


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Petitione!s conten% th&t since PICCI '&s inco!po!&te% 'ith the Secu!ities &n% E=ch&n2e

Co11ission )SEC* )SEC Re2ul&tion No$ -@@9.* &n% h&s no o!i2in&l ch&!te!" it shoul% be 2o#e!ne%

b7 Section 0. of the Co!po!&tion Co%e$ Acco!%in2 to petitione!s" thei! !eceipt of RATA &s %i!ecto!s of

PICCI '&s s&nctione% b7 PICCI5s sole stoc4hol%e!" BSP )th!ou2h its o'n 2o#e!nin2 bo%7" the


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'&!!&nt$ No othe! co1pens&tion 1&7 be 2i#en to the1" e=cept onl7 'hen the7 se!#e the co!po!&tion

in &nothe! c&p&cit7$

Petitione!s 6ustif7 thei! entitle1ent to P(":..$.. RATA f!o1 the PICCI" on the theo!7 th&t

TJhe pu!pose in issuin2 NCC No$ -8 is to ensu!e unifo!1it7 &n% consistenc7 of &ctions on cl&i1s fo!RATA 'hich is 2!&nte% b7 l&' to n&tion&l 2o#e!n1ent offici&ls &n% e1plo7ees to co#e! e=penses

incu!!e% in the %isch&!2e o! pe!fo!1&nce of thei! %uties &n% !esponsibilities$


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co1pens&tion th&t &s fo!1e! office!s of the BSP" petitione!s ,&b!iel P$ Sin2son" A!&celi E$

ill&nue#&" An%!e N&to" E%2&!%o P$ i&lcit&" &n%


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l&'" no! &ccept 'ithout the consent of the Con2!ess" &n7 p!esent e1olu1ent" office o! title of &n7

4in% f!o1 &n7 fo!ei2n 2o#e!n1ent$ Pensions &n% 2!&tuities sh&ll not be consi%e!e% &s &%%ition&l"

%ouble o! in%i!ect co1pens&tion$

!SSUE$ W) (&'r' i* +o/l' op')*-(io) i) (&i* -*'.

ELD$ NONE

T&i* proi*io), &o%''r, +o'* )o( -ppl (o (&' pr'*')( -*' -* (&'r' %-* )o +o/l'

op')*-(io) o3 RATA (o (&' p'(i(io)'r*.

In 2e/nes v. Co##ission on Audit"(@the Cou!t cl&!ifie% th&t 'h&t N&tion&l Co1pens&tion Ci!cul&!

)NCC* No$ -8 see4s to p!e#ent is the %u&l collection of RATA b7 & n&tion&l offici&l f!o1 the bu%2ets

of M1o!e th&n one n&tion&l &2enc7$M In the s&i% c&se" the inte!p!et&tion '&s th&t NCC No$ -8 c&nnot

be const!ue% &s nullif7in2 the po'e! of the!ein loc&l 2o#e!n1ent units to 2!&nt &llo'&nces to 6u%2es

un%e! the Loc&l ,o#e!n1ent Co%e of (;;($ Fu!the!" NCC No$ -8 &pplies onl7 to the n&tion&l fun%s

&%1iniste!e% b7 the DBe e1ph&siGe th&t the other

source!efe!!e% to in the p!ohibition is another national agenc/$ This c&n be 2le&ne% f!o1 the f&ct
http://www.lawphil.net/judjuris/juri2010/aug2010/gr_159355_2010.html#fnt18http://www.lawphil.net/judjuris/juri2010/aug2010/gr_159355_2010.html#fnt18http://www.lawphil.net/judjuris/juri2010/aug2010/gr_159355_2010.html#fnt18http://www.lawphil.net/judjuris/juri2010/aug2010/gr_159355_2010.html#fnt18


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th&t the sentence Mno one sh&ll be &llo'e% to collect RATA f!o1 1o!e th&n one sou!ceM )the

cont!o#e!si&l p!ohibition* i11e%i&tel7 follo's the sentence th&t RATA sh&ll be p&i% f!o1 the bu%2et

of the n&tion&l &2enc7 'he!e the conce!ne% n&tion&l offici&ls &n% e1plo7ees %!&' thei! s&l&!ies$ The

f&ct th&t the othe! sou!ce is &nothe! n&tion&l &2enc7 is suppo!te% b7 RA 8-9: )the ,AA of (;;0*

in#o4e% b7 !espon%ent COA itself &n%" in f&ct" b7 &ll subse?uent ,AAs fo! th&t 1&tte!" bec&use the

,AAs &ll essenti&ll7 p!o#i%e th&t )(* the RATA of n&tion&l offici&ls sh&ll be p&7&ble f!o1 the bu%2etsof thei! !especti#e n&tion&l &2encies &n% )/* those offici&ls on %et&il 'ith othe! n&tion&l &2encies

sh&ll be p&i% thei! RATA onl7 f!o1 the bu%2et of thei! p&!ent n&tion&l &2enc7

= = = = = = = = =

Cle&!l7 the!efo!e" the p!ohibition in NCC No$ -8 is onl7 &2&inst the %u&l o! 1ultiple collection of

RATA b7 & n&tion&l offici&l f!o1 the bu%2ets of t'o o! 1o!e n&tion&l &2encies$ St&te% othe!'ise"

'hen & n&tion&l offici&l is on %et&il 'ith &nothe! n&tion&l &2enc7" he shoul% 2et his RATA onl7 f!o1

his p&!ent n&tion&l &2enc7 &n% not f!o1 the othe! n&tion&l &2enc7 he is %et&ile% to$(;)It&lics

supplie%$*


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''(i); (&' -((')+'+, i) (&'ir -p-i( -* ''r* o3 (&' hile

the Cou!t sust&ine% the COA on the %is&llo'&nce" it ne#e!theless %ecl&!e% th&t

Consi%e!in2" ho'e#e!" th&t &ll the p&!ties he!e &cte% in 2oo% f&ith" 'e c&nnot counten&nce the

!efun% of sub6ect incenti#e benefits fo! the 7e&! (;;/" 'hich &1ounts the petitione!s he &l!e&%7!ecei#e%$ In%ee%" no indicia of b&% f&ith c&n be %etecte% un%e! the &tten%&nt f&cts &n%

ci!cu1st&nces$ The offici&ls &n% chiefs of offices conce!ne% %isbu!se% such incenti#e benefits in the

honest belief th&t the &1ounts 2i#en 'e!e %ue to the !ecipients &n% the l&tte! &ccepte% the s&1e

'ith 2!&titu%e" confi%ent th&t the7 !ichl7 %ese!#e such benefits$

This !ulin2 in Bla4uera &pplies to the inst&nt c&se$ Petitione!s he!e !ecei#e% the &%%ition&l

&llo'&nces &n% bonuses in 2oo% f&ith un%e! the honest belief th&t L>UA Bo&!% Resolution No$ 0(0

&utho!iGe% such p&71ent$ At the ti1e petitione!s !ecei#e% the &%%ition&l &llo'&nces &n% bonuses"

the Cou!t h&% not 7et %eci%e% Ba/$a/ Water District 9v. Co##ission on Audit./-Petitione!s h&% no

4no'le%2e th&t such p&71ent '&s 'ithout le2&l b&sis$ Thus" bein2 in 2oo% f&ith" petitione!s nee%

not !efun% the &llo'&nces &n% bonuses the7 !ecei#e% but %is&llo'e% b7 the COA$

/8

In subse?uent c&ses"/@the Cou!t too4 into &ccount the 2oo% f&ith of the !ecipients of the &llo'&nces"

bonuses" &n% othe! benefits %is&llo'e% b7 !espon%ent &n% !ule% th&t the7 nee% not !efun% the s&1e$

As petitione!s belie#e% in 2oo% f&ith th&t the7 &!e entitle% to the RATA of P(":..$.. fo! e#e!7 bo&!%

1eetin2 the7 &tten%e%" in thei! c&p&cit7 &s 1e1be!s of the Bo&!% of Di!ecto!s of PICCI" pu!su&nt to


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Pilipinas2!&ntin2 e&ch of the1 &n &%%ition&l 1onthl7 RATA of P(":..$.." fo! e#e!7 1eetin2

&tten%e%" in thei! c&p&cit7 &s 1e1be!s of the Bo&!% of Di!ecto!s of Philippine Inte!n&tion&l

Con#ention Cente!" Inc$ )PICCI*" o! in the tot&l &1ount ofP(":-:"...$.." co#e!in2 the pe!io% f!o1

(;;-+(;;@$

SO ORDERED$

D!OSDADO M. PERALTA

Associ&te ustice


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SUPREME COURT


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&n% p&i% up sh&!es tot&lle% 0."(/8".98 'ith & tot&l p&! #&lue of P0.("/8."90.$..$ !( %-* o)(')+'+

(&-( -or+i); (o *'(io) 22 o3 (&' Corpor-(io) L-% -)+ Ar(il' !!! o3 (&' :l-%* o3 (&'

orpor-(io), (&' po%'r (o -')+, o+i3, r'p'-l or -+op( )'% :l-%* - ' +'l';-('+ (o

(&'


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cop7 of the 1&n&2e1ent cont!&ct bet'een S&n H (&-( p'(i(io)'r

&-* )o( --il'+ o3 &i* i)(r-:orpor-(' r''+ 3or (&' )/lli3i-(io) o3 (&' -')+')(, %&i& i*

(o *'/r' i(* r'p'-l o(' o3 (&' *(o&ol+'r* r'pr'*')(i); - -=ori( o3 (&' */*ri'+

-pi(-l *(o -( -) r';/l-r or *p'i-l ''(i);, -* proi+'+ i) Ar(il' !!!, *'(io) ! o3 (&' :

l-%* -)+ *'(io) 22 o3 (&' Corpor-(io) l-%, &')' (&', p'(i(io) i* pr'-(/r' th&t petitione! is

estoppe% f!o1 ?uestionin2 the &1en%1ents on the 2!oun% of l&c4 of &utho!it7 of the Bo&!%$ since he

f&ile%" to ob6ect to othe! &1en%1ents 1&%e on the b&sis of the s&1e (;-( &utho!iG&tion th&t thepo'e! of the co!po!&tion to &1en% its b7+l&'s is b!o&%" sub6ect onl7 to the con%ition th&t the b7+l&'s

&%opte% shoul% not be !espon%ent co!po!&tion inconsistent 'ith &n7 e=istin2 l&' th&t !espon%ent

co!po!&tion shoul% not be p!eclu%e% f!o1 &%optin2 p!otecti#e 1e&su!es to 1ini1iGe o! eli1in&te

situ&tions 'he!e its %i!ecto!s 1i2ht be te1pte% to put thei! pe!son&l inte!ests o#e! t I h&t of the

co!po!&tion th&t the ?uestione% &1en%e% b7+l&'s is & 1&tte! of inte!n&l polic7 &n% the 6u%21ent of

the bo&!% shoul% not be inte!fe!e% 'ith Th&t the b7+l&'s" &s &1en%e%" &!e #&li% &n

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