Second Batch Corpo Cases

8122019 Second Batch Corpo Cases

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THIRD DIVISION

[GR No 170782 June 22 2009]

SIAIN ENTERPRISES INC petitioner vs CUPERTINO REALTY CORPand EDWIN R CATACUTAN respondents

D E C I S I O N

NACHURA J p

Before u peon for re$e on certiorari unamper Rue () of e Rue of +our ne ampe-on of e +our of ppe n +GR +V No 71(2( 1 - ffreamp e ampe-on

of e Reon Tr +our Brn- 29 Ioo + n +$ +e No 22(( 2On pr 10 199) peoner Sn 3nerpre In- o4neamp on of 5700000000 froreponampen +uperno Re +orporon 6+uperno -o$ereamp 4 proor noe neamp 44o peoner namp +uperno repe-$e preampen +u e en namp freampo u Teproor noe uore +uperno e -reampor o p-e n e-ro e on pro-eeamp of5700000000 lteropon Bn= gt Tru +opn o p off peoner ono4on De$eopen Bn= of e 5ppne 6DB5 To e-ure e on peoner one e ampe ee-ueamp re ee ore o$er o 62 pr-e of namp namp oero$4e u- eupen namp -nereTo 62 amp erefer or on pr 12 199) e pre ee-ueamp n enampen oproor noe - pro$ampeamp for e$eneen per-en 617A nere per nnu on e

5700000000 on 3 Te enampen o proor noe =ee neamp 4 +u een namp freampo u on 4ef of peoner namp +uperno repe-$eOn uu 1 199) +u e en neamp e-onamp proor noe n f$or of +uperno for51000000000 +u e en neamp e e-onamp proor noe =er on 4ef ofpeoner namp -o=er 4e o +uperno n er peron -p- T e-onampproor noe pro$ampe

5ROltISSORC NOT3 ltONTDT3 GST 1 199)ON3 HNDR3D SIETC ltIION 53SOS65H5 1000000000FOR V3 R3+3IV3D fer one 61 er fro ampe on or uu 1

199 3 SIIN 3NT3R5RIS3S IN+ ltero ltn off-e ampampre 0 J5 R S ltnampuon + repreeneamp eren 4 ampu uoreamp5reampen lt 33NG + 6 -op of er uor ereo -eamp

nne namp lt 33NG + n er peron -p- reampen ofIOIO +ITC on namp e$er un-onampon proe o p+53RTINO R3TC +OR5ORTION or oramper n en -orporon ampuorneamp unamper 5ppne e ounu of ON3 HNDR3D SIETCltIION 53SOS 65H5 1000000000 5ppne +urren- ou furerneeamp of n ampenamp e off-e of +53RTINO R3TC +OR5ORTION

1



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e$en of 4n=rup- or no$enre-e$erp e$ of ee-uon rnenor -en or n -e of -on$-on for -rn offene -rrn epen of -$ neramp-on or n n of e -e -o$ereamp 4 r-e 1198 of e+$ +oampe of e 5ppne en e enre prn-p of noe namp oernere namp pene ampue ereon e opon of +53RTINOR3TC +OR5ORTION eampe 4e-oe ampue namp p4e namp e

on namp e$er ree o p ampampon pen e re of THR3353R+3NT 6A per on on e o ounu ampue un fu pampFurerore e on namp e$er ree o p n ampampon ueu$en o 20A of e o oun ampue 4u n no -e e n 5H510000000 namp for orne fee n ampampon o epene namp -o of ue ere4 uore namp epoer +53RTINO R3TC +OR5ORTION opon n e ou no-e o pp o e pen of noe nampor n oer pr-ur o4on or o4on of or n one of u o+53RTINO R3TC +OR5ORTION ee- rrepe-$e of eampe of ur eer or no amp o4on re en ampue n namp one -e-= e-ure namp n of $ue - re no or - erefer 4e n namp on ampepo or oere o e -reamp of or 4eonno 4o or n one of u namp +53RTINO R3TC +OR5ORTION ere4 uoreamp o e pu4- or pr$e e u- -e-= e-ure orn of $ue for e purpoe of ppn e pro-eeamp ereof o u-pen of noe HSID-e ere4 epre -onen o n eenon nampor rene ereof noe or n pr nampor pr pen on --oun - 4e reueeamp 4namp rneamp o u or n one of u for e pen of noe on erenn unpamp 4n-e ern n nere of THR33 per-en 6A on un fu pamp Su- rene or eenon n no -e 4eunamperooamp no$on of noe or n pro$on ereof namp e ere4 -onnue o 4e 4e for e pen of noee u4 o e uramp-on of e +our of e + of ltn or of e p-eof ee-uon of noe e opon of +53RTINO R3TC+OR5ORTION ou amp$en n oer -our of uramp-on for ne -on - re ou of noe In -e of uamp- ee-uon of o4on or n pr of e ere4 $e our r unamper epro$on of Rue 9 e-on 12 of e Rue of +oure o re u nampe4eamp o +53RTINO R3TC +OR5ORTION reeo ee-ue repe-$e re ee ore namp peampe or -eore -o$ern e-ure o er$e -oer for on namp oee-ue =ee n rre$o-4e pro o o repreen$e of e -reamporo 4e 4e o onor - of neen o o pre$en n preure -of on e furer unamper=e o ee-ue n oer =namp of ampo-uen- +53RTINO R3TC +OR5ORTION oe 4ee$e ne-ern oramper o effe- n e-ur o$er n -oer

2



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o amppoe of amp e-ur or n pr ereof pu4- e Te pro-eeamp ofu- e or e fer pen of epene namp -oonenampn amp e or e 4e ppeamp o proor noe namp e4n-e f n fer pen of proor noe namp nere ereon 4e reurneamp o e unamperneamp er er u--eor nampampnror 4e opon for e oner of e proor noe o 4ampfor namp pur-e e e-ure or n pr ereof6neampSIIN 3NT3R5RIS3S IN+33NG +In er peron -p-+OltK3RB

6neamp33NG +ltK3R

ITN3SS3S6neamp3DGRDO 6neampROS3 ltRI3 RGODON 4

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3



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+urou oe$er namp -onrr o e enor of e foreon on ampo-uen peoner onltr- 11 199 rou -oune roe +uperno namp ampenampeamp e reee of e51000000000 on n-ree -o$ereamp 4 e enampen of re ee ore 6 In eampenamp eer peoner -oune eamp ampepe repeeamp $er4 ampenamp +uperno

amp e o reee e 51000000000 on On lt 17 199 peoner ampenampeamp nefro +uperno e reee of e 51000000000 on 7In -opee refuon +uperno =ee rou -oune reponampeamp namp ampeneamp ampe o reee e 51000000000 on +uperno nneamp peoner amp ono4neamp e pro-eeamp of e foreamp on +uperno ampe-reamp peoner ampenamp ampeo 4-onamp fro u namp $amp o4on ere ferou foon +uperno eerampenampn pen of e 5700000000 on -o$ereamp 4 e fr proor noe -4e-e o$erampue on ltr- ) 199No urprn +uperno nueamp eruamp- fore-oure pro-eeampn o$er e propereu4e- of e enampeamp re ee ore Te u-on e -eampueamp on O-o4er 11199 reponampen Nor 5u4- 3ampn R +-un -ooneamp o -onampu- e eT propeamp peoner o fe -opn prer for rernn oramper o enonNor 5u4- +-un fro pro-eeampn e pu4- u-on Te foon re e pre -onf-n - ureamp 4 e RT+ namp uoeamp$er4 4 e + n ampe-on

Te $erfeamp -opn ee [peoner] eneamp n enuf-urn namp renoen 4une On e oer namp+uperno eneamp n e re 4une T on pr 10 199) [peoner]ee-ueamp Re 3e ltore o$er re propere -o$ereamp 4 Trnfer+erf-e of e No T7)109 namp T7(81 6e ore propere ofe Reer of Deeamp of Ioo n f$or of +uperno o e-ure e forer ono4on o e er n e oun of 5p700000000 T 4eene reeen 4eeen [peoner] namp +uperno e foreamp on 4e nonnere 4ern --orampn e pre o e proornoe 6e$ampen-n er on reeen ampamp no pro$ampe n puon repe- o nere On e$er o--on erefer [peoner] ampe prpen o +uperno n repe- of e foreamp on o4on 4 e forero e er n e o oun of 5p798)0908 ere4 e$n 4n-eof 5p2901(9092 On uu 1 199) [peoner] namp +upernoee-ueamp n enampen of Re 3e ltore 6nne + n-ren eo on -o$ereamp 4 e foreamp R3lt fro 5p700000000 o519700000000 T enampen o R3lt ee-ueamp prepror o eproeamp reee 4 +uperno of ampampon on pro-eeamp o [peoner] n eo oun of 5p1000000000 Hoe$er ampepe e ee-uon of eamp enampen o R3lt namp u4euen reron e Reer ofDeeamp of Ioo + namp nonampn e -er reeen 4eeen[peoner] namp +uperno namp e er reee namp ampe$er o e forere foreamp ampampon on pro-eeamp of 51000000000 fer e nn ofpernen ampo-uen namp e reron of e enampen of R3lt +upernofeamp namp refueamp o reee e amp ampampon oun for no pprenreon -onrr o repeeamp proe - [peoner] -onnuoureeamp on On --oun of +uperno unfufeamp proe [peoner]

4



repeeamp ampenampeamp fro +uperno e reee nampor ampe$er of e amp5p1000000000 o e forer Hoe$er +uperno feamp namp refueampnamp -onnuou f namp refue o reee nampor ampe$er e5p1000000000 o [peoner] en [peoner] enampereamp pen of eoun of 5p2901(9092 - e renn 4n-e of e5p700000000 on u4e- of e R3lt n oramper o amp-re e e

+uperno unreon4 namp unuf4 refueamp --epn-e ereof on erounamp e pre$ou pen ounn o 5p798)0908 ppeamp4 +uperno o eeamp nere namp no o prn-p oun ampepe e f- erer eamp e foreamp on 4 reeen of e pre nonnere 4ern or un=non o [peoner] +uperno reamp =nrrneen [reponampen] Nor 5u4- for e eruamp- e of eore propere e$en [peoner] ore n n o p e5p2901(9092 - e renn 4n-e of e 5p700000000on namp nonampn +uperno unufeamp refu namp fure o ampe$ero [peoner] e oun of 5p1000000000 In f- nor e of eoreamp propere reamp -eampueamp on 0( O-o4er 199 4[reponampen] Nor 5u4- off-e o-eamp R 100 Ioo + 5Gen un S Ioo + In $e of e foreon +uperno no e ro fore-oe e oreamp propere In n e$en +uperno -nnoeruamp- -ue e fore-oure 4 nor e of e orepropere 4 [reponampen] Nor 5u4- ere non n e R3lt 6ampeamp10 pr 199) or n e enampen ereo rn +uperno e ampr [Reponampen] fn feamp n ner o e -opn en e on$e 6sic n nere of 17A per nnu no pen e$er ampe 4[peoner] [peoner] reamp re-e$eamp e oun of e on proro e ee-uon of e proor noe namp enampen of Re 3eltore [5eoner] feamp uppeen -opn en u4euen - ampe 4ampefenampn -un e u4euen u-on e namp reern e+erf-e of u-on Se prn amp u-on e 4e ampe-reamp nu namp$oamp namp orampern e Reer of Deeamp o -n-e e reron nampnnoon of e +erf-e of Nor SeTerefer e 5reTr -onferen-e e Bo pre u4eamp errepe-$e Bref namp e foon f- ere ampeamp viz13e-uon of e ore ampeamp pr 10 199)2enampen of Re 3e ltore ampeamp uu 1 199)3e-uon of n 3rJuamp- Fore-oure 4 e [+uperno](3en-e of o 62 proor noe)3en-e 4u no e -onen of e ampenamp eer ltr- 11 199

ampampreeamp o ltr freampo u namp re-ep of e e 4 [+uperno]namp

No-e of 3rJuamp- Fore-oure SeFor fn o rr$e n -4e eeen r on e er enueamp Tepre preeneamp or namp ampo-uenr e$ampen-e o uppor er - namp-onenon [5eoner] neamp e ne$er re-e$eamp e pro-eeamp of5p1000000000 u e fore-oure of e u4e- propere nu namp

5



$oamp [+uperno] on e oer namp -eamp oere 8 fer r e RT+ renampereamp ampe-on ampn peoner -opn namp orampern op +uperno 510000000 e- for -u namp eepr ampe namp 5)0000000 orne fee Te RT+ re-eamp namp e ampe pre$ou oramper ampe-rn e norfore-oure of e oreamp propere nu namp $oamp On ppe e + pre$ouamp$ereamp o ffreamp e RT+ run

In ampn peoner -opn namp fnampn for +uperno 4o e oer -our upeamp e$amp of e enampeamp re ee ore Te RT+ founamp ampamp e + oue enampeamp re ee ore fe n e e-epon o e pro e$ampen-e rue unamperSe-on 9 Rue 10 of e Rue of +our peoner feamp o o$er-oe namp ampe4un=+uperno e$ampen-e e enampeamp re ee ore amp -onamperon namppeoner ampamp re-e$e e oun of 51000000000 repreenn n-urreamp o4on o+uperno Bo -our rueamp 4eeen peoner 4re ampen namp ne$e e$ampen-e ofnonre-ep of e 51000000000 namp +uperno ffr$e e$ampen-e on e een-e ofe -onamperon e er u 4e $en ore e namp $ue In e oer -our$e -reampen-e o +uperno e$ampen-e e 51000000000 pro-eeamp ere e ooun re-e$eamp 4 peoner namp ffe -opne o$er e er fro freampo u+uperno preampen In reramp e oer -our ppeamp e ampo-rne of per-n e $eof -orpore f-on o pre-uampe peoner fro amp$on re-ep of e 51000000000namp pn o4on unamper e enampeamp re ee ore DT3I-nampuneamp peoner feamp ppe nn on e nu of e enampeamp re eeore 5eoner ampn e enampeamp re ee ore $oamp ampamp nore-e$e e reeamp -onamperon erefor ie 51000000000 5eoner $er eenampeamp re ee ore ampoe no --ure refe- e reeen 4eeen e pre e e neamp e ampo-uen -u amp e o re-e$e e oun of51000000000 peoner e$ere e oer -our erroneou ppeamp eampo-rne of per-n e $e of -orpore f-on en 4o $e -reampen-e o +upernoe$ampen-e on peoner ffe ere e pre$ou re-pen of pr of e51000000000 nampe4eampne of peoner o +upernoe re n -opee --oramp e oer -our runeenren-eamp n urpruampen-e e rue f-u fnampn of e r -our epe-en ffreamp 4 e ppee -our re --orampeamp e e amperee of repe- namp re-onampereamp -on-u$e 4eeen e pre 9 re$e of u- fnampn 4 +our norrneamp e-ep upon on of erorou -r-un-e u- 61 en efnampn of r -our re rounampeamp enre on pe-uon ure or -one-ure 62en oer -our nferen-e fro f-u fnampn nfe =en 4uramp orpo4e 6 en ere r$e 4ue of amp-reon n e ppre-on of f- 6( ene fnampn of e ppee -our o 4eonamp e ue of e -e or f o no-e -ernree$n f- - f proper -onampereamp uf ampfferen -on-uon 6) en ere ppre-on of f- 6 en e fnampn of f- re -on-uon ou enon of epe-f- e$ampen-e on - e re 4eamp re preeamp on e 4en-e of e$ampen-e or re-onramp-eamp 4 e$ampen-e on re-oramp 1 None of ee e-epon ne-en re$er ofe eamp ampe-on o4n n nn-e+on$ere e -nno u4-r4e o peoner fu reonnFirst e on ampo-uen on er f-e uneu$o- ampe-re peoner nampe4eampne o+uperno15roor Noe ampeamp pr 10 199) pref-eamp [f]or $ue re-e$eamp namp e e-rorrneen for e reee of e 5700000000 o4on n f$or of DB5 noer -reamporof peoner

6



2ltore =ee ampeamp pr 10 199) ee-ueamp 4 peoner o e-ure 5700000000on o4on +upernoenampen o 5roor Noe for 5700000000 ampeamp pr 12 199) - en$ee e nere re e$eneen per-en 617A per nnu(5roor Noe ampeamp uu 1 199) =ee pref-eamp [f]or $ue re-e$eamp nampun-onampon pron o p +uperno 51000000000 puon on

-opounampn nere r per-en 60A per nnu Te 5roor Noe reureon oer e ee-uon of re ee ore o er$e -oer erefor In -eof ampefu n pen peoner pe-f- rou preampen +u e en uore+uperno o amppoe of amp e-ur or n pr ereof [] pu4- e )enampen of Re 3e ltore o ampeamp uu 1 199) re- eoror eren peoner n-reeamp on p4e o e oree +uperno fro5700000000 o 519700000000 In -onne-on e n-ree n on o4on epre -onfreamp namp rfeamp e Re 3e ltore ampeamp pr 10 199)n=4 fro e foreon -n of rn-on preupon ren eon ampo-uen ere upporeamp 4 -onamperonRue 11 Se-on of e Rue of +our pe-fe amppu4e preupon f-or f un-onramp-eamp namp no o$er-oe 4 oer e$ampen-e +oror ereoprrp 6r namp 6 ereof namp Se-on 2( of e Neo4e Inruen reamp

S3+ Disputable presumptions L Te foon preupon ref-or f un-onramp-eamp 4u 4e -onramp-eamp namp o$er-oe 4 oere$ampen-e 6rT ere uff-en -onamperon for -onr-6T neo4e nruen $en or namporeamp for uff-en-onamperon S3+ 2(Presumption of consideration L 3$er neo4e nruen ampeeeamp prima facie o $e 4een ueamp for $u4e -onamperon nampe$er peron oe nure pper ereon o $e 4e-oe prereo for $ue

Second Te foreon nonampn peoner n e enampeamp Re 3eltore no upporeamp 4 -onamperon ern nonre-ep of e51000000000 on n-ree refe-eamp n e enampeamp Re 3e ltore Hoe$erpeoner 4ref-eamp eron ampoe no e$en ampen u- e o$er-oe e foreamppreupon on -onamperon for -onr- ampef poneamp ou 4 e r -our

In -e +our fnamp e [peoner] no 4een 4e oe4 - of nonre-ep 4 preponampern-e of e$ampen-e Rer e+our n-neamp o $e ore e namp -reampen-e o e ffr$e namprforramp eon of [+uperno] epnn n pn namp -eor-oramp e 5p19700000000 on repreeneamp 4 e enampeamp R3lt e o u of e ampe4 eo e -e-= e re ee ore nampe enampeamp re ee ore e peampe of eere e ru-= nampe -onamponu pu e nere 4e n-urreamp - n ouneamp o 5p19700000000 I 4- o n uramp-on 4eeen e pnff ne$e e$ampen-e of ampen namp e ampefenampnffr$e e$ampen-e on e een-e of e -onamperon e er u 4e$en ore e namp $ue ltoreo$er [+uperno] foreon eon on

7



e een-e of e -onamperon of e 5p1000000000 proor noe ne$er 4een refueamp nor ampeneamp 4 e [peoner] o e n $nnfeeamp preen re4u e$ampen-e e$enu feamp o ampo oampepe $4e opporune --orampeamp o B u- fure o preenre4un e$ampen-e [+uperno] eon on e een-e of e-onamperon of e enampeamp re ee ore ampoe no on 4e-oe

peamp ampeamp 4 e [peoner] ore nf-n o e namp of +our -er namp-on [peoner] no -ouner e$ampen-e oo$er-oe namp ampefe e [+uperno] e$ampen-e on e er Oereere no o- for [peoner] o oamp f $4e un nampeeamp e 4e fe ueamp u- e$ampen-e $n 4een fuuppreeamp amp$ere f proampu-eampTe preenon 4 [peoner] of - Journ Re-ep Boo= proof ampamp no re-e$e e pro-eeamp of e 5p1000000000 proor noeampoe no =ee peruampe e +our In e fr p-e e u4e- -re-ep ourn on -onneamp - re-ep for e er 199) Bu ppern fro e $rou -e-= namp ampe4 eo ueamp 4 freampo unamp fe V-= u namp fro e forer unre4ueamp eon n +oure un-e of e -e-= ampe4 eo peampe of eere -onamponuun ru-= namp e oer -oponen of e 5p19700000000 enampeampre ee ore amp =en p-e pror o e er 199) en-e e-ouamp no $e 4een re-orampeamp eren ore e amp - re-ep

ourn pper o 4e prepreamp oe e 4ee of e [peoner] en-e-n 4e -onampereamp enn fro poonou ree erefore efer$nnamp -nno 4e $en n erou -reamp4 11

Snf-n peoner e$ere e pro e$ampen-e rue - e-uampe oere$ampen-e pr fro e ren reeen o pro$e e er reeamp upon 4 e pre-onneamp eren 12 no pp-4e o e enampeamp Re 3e ltore Bo e rnamp ppee -our reeamp peoner namp ampamp no pp e pro e$ampen-e rue Ceampepe e on-e o preen e$ampen-e namp pro$e e n$amp of e enampeamp Re3e ltore peoner feamp o u4ne - of nonre-ep of e pro-eeampof e 51000000000 on n-reeltoreo$er peoner e pnff n e r -our e pr 4rou u nreponampen --orampn amp e 4urampen of proof e ampu o preen preponampern-e ofe$ampen-e o e4 - 13 Hoe$er peoner e$ampen-e -oneamp on of 4ref-eamp ampen of re-ep namp $ue amprn eor n er pre$ou on rn-on reponampen -o$ereamp 4 e fr proor noe ampamp no re-e$e e pro-eeamp of e5700000000 5eoner -on$enen nore pr-ur proor noe e-ureamp4 e re ee ore unamper n e-ro rrneen namp =en ou o p o4on o DB5 Tu peoner ue o4$ou ouamp no 4e n poeon of epro-eeamp of e on +onrr o peoner -onenon ere no pre-eampen o epn n-e reponampen unamperoo= o reee e 51000000000 on on fer amp frneamp e enampeamp Re 3e ltoreThird 5eoner 4e e oer -our pp-on of e ampo-rne of per-n e $e of-orpore f-on

ener rue -orporon 4e ampeeeamp epre e en un uff-en reono e -onrr pper 14 Bu e rue no 4oue -orporon epre namp ampn-e peron 4e amprerampeamp namp e $e of -orpore f-on per-eamp en e noonof e en ueamp o ampefe pu4- -on$enen-e uf ron proe- fruamp or ampefenamp

8



-re 15In -e +uperno preeneamp o$eren e$ampen-e peoner namp ffe-orporon amp re-e$eamp e pro-eeamp of e 51000000000 on n-ree - en ampe e -onamperon for e enampeamp Re 3e ltore e uoe f$or eRT+ namp e + ampuon on er

T e -e-= ampe4 eo namp e peampe of e eere -onamponu

un namp ru-= ere -onueamp no e-u$e n e ne of [peoner] 4uo eer n e ne of Cue= ltnuf-urn +orporon Sn TrnporIn- +u een namp 4ero of no oen For e f- e4eamp ne -e 4r -on$n-eamp e +our of e propre o pp e prn-pe=non per-n e $e of e -orpore en 4 $rue of - e

uramp- perone of e $rou -orporon n$o$eamp re amprerampeamp nampe enun 4 of e -orporon o - ampre- o repon4eoff-er namp o-=oamper Te -onun-on of e ampen of e [peoner] -orporon n reon o SnTrnpor In- 6Sn Trnpor Cue= ltnuf-urn +orp 6Cue= e e namp$ampu perone of +u een namp 4ero 4eennampu44 on n e nn -e 4 e foon e4eamp-onamperon o

1Siain and Yuyek have a common set of incorporators stockholdersand board of directors2They have the same internal bookkeeper and accountant in the

person of osemarie a$odonThey have the same office address at amp Jose izal St(andaluyon$ )ity(They have the same maority stockholder and president in the personof )ua +e +en$ and )n relation to Siain Transport )ua +e +en$ had the unlimited authorityby and on herself -ithout authority from the oard of Directors to usethe funds of Siain Truckin$ to pay the obli$ation incurred by thepetitioner corporationThus it is crystal clear that petitioner corporation Yuyek and SiainTransport are characterized by oneness of operations vested in the

person of their common president )ua +e +en$ and unity in thekeepin$ and maintenance of their corporate books and records throu$htheir common accountant and bookkeeper osemarie a$odon)onseuently these corporations are proven to be the mere alter0e$oof their president )ua +elen$ and considerin$ that )ua +elen$ and

1lberto +im have been livin$ to$ether as common la- spouses -iththree children this )ourt believes that -hile 1lberto +im does notappear to be an officer of Siain and Yuyek nonetheless his receipt ofcertain checks and debit memos from 2illie +ua and 3ictoria +ua -asactually for the account of his common0la- -ife )ua +elen$ and heralter e$o corporations 2hile this )ourt a$rees -ith Siain that acorporation has a personality separate and distinct from its individualstockholders or members this le$al fiction cannot ho-ever be appliedto its benefit in this case -here to do so -ould result to inustice andevasion of a valid obli$ation for -ell settled is the rule in this

9



urisdiction that the veil of corporate fiction may be pierced -hen it isused as a shield to further an end subversive of ustice or for purposesthat could not have been intended by the la- that created it or to ustify-ron$ or for evasion of an e4istin$ obli$ation esultantly theobli$ation incurred and5or the transactions entered into either by Yuyekor by Siain Truckin$ or by )ua +elen$ or by 1lberto +im -ith )upertino

are deemed to be that of the petitioner itself acD)6 Te e prn-pe eu ppe o +uperno Tu e pper e un-e of e -e-= namp e ampe4 eo e e peampe of e-onamponu un e eere namp e ru-= amp o--urreamp pror o ltr-2 199) e ampe en +uperno n-orporeamp e e ampoe no ffe-e $amp of e u4e- rn-on 4e-ue ppn n e prn-pe ofper-n e -orpore $e e rn-on enereamp no 4 +uperno Re+orporon 4en ere e er eo of freampo u re ampeeeamp o 4ee er peron rn-on namp $-e$er 16 $amp -n 4e $eeamp fro e en re-oramp of e nn -e +ueen e or o-=oamper of e ree 6 -orporon ne Cue=ltnuf-urn +orporon Sn Trnpor In- namp Sn 3nerpre In- e e e e 5reampen ereof S()nd Ben e or o-=oampernamp e preampen +u e en e uneamp poer -onro namp uorou e ppro$ fro e 4oramp of ampre-or o o4n for namp n 4ef ofe [peoner] -orporon fro [+uperno] ere4 orn er eeree -onamponu of er -oon u4namp 4ero e ru-=reereamp n e ne of [peoner] -orporon er -opn SnTrnpor In- e u4e- o reereamp n e ne of [peoner]-orporon namp er o proper Ioo + namp o pp e pro-eeampereof n e$er e n o e preuamp-e of e pu4-

u- [peoner] -orporon no eoppeamp fro ampenn e 4o$eppren uore of +u e en o oamp eref o e pu4- poen e poer o ampo oe - n n peron o ampe n ooampf n e -e of +uperno 17

H3R3FOR3 pree -onampereamp e peon DENIED Te De-on of e +our of ppe n +GR +V No 71(2( AIR+ED +o n e peoner +DTISO ORDERED

10



S3+OND DIVISION

[GR No 1(0) uu 2008]

CLAUDE P AUTISTA petitioner vs AUTO PLUS TRADERSINCORPORATED and COURT O APPEALS -T(n$D0$nrespondents

D E C I S I O N

UISU+IN J p

T peon for re$e on certiorari e De-on 1 ampeamp uu 10 200( of e +ourof ppe n +GR +R No 28(( namp e Reouon 2 ampeamp O-o4er 29 200( -ampeneamp peoner oon for re-onamperon Te +our of ppe ffreamp e Fe4rur 2(200( De-on namp lt 11 200( Oramper of e Reon Tr +our 6RT+ D$o + Brn-1 n +rn +e No )20 namp )2(0Te ne-eampen f- re foo5eoner +uampe 5 Bu n -p- 5reampen namp 5reampn Off-er of +ruer Bune namp Trnpor +orporon pur-eamp $rou pre pr fro pr$e reponampen uo5u Tramper In- namp ueamp o poampeamp -e-= o -o$er pur-e Te -e-= ereu4euen amponoreamp 5r$e reponampen en ee-ueamp n ffamp$-opn for$oon of atas Pambansa l$ 22 3 n peoner +oneuen o Inforon for

$oon of P l$ 22 ere feamp e ltun-p Tr +our n +e 6ltT++ of D$o +n e peoner Tee ere ampo-=eeamp +rn +e No 10200(B2001 namp10200)B2001 Te Inforon 4 reamp

Cnaamp Ca$( N 12421Te unamperneamp --ue e 4o$eneamp --ueamp for $oon of B54n Bn 22 -oeamp fooT on or 4ou De-e4er 1) 2000 n e + of D$o 5ppne nampn e uramp-on of Honor4e +our e 4o$eenoneamp --ueamp=non fu e e amp no uff-en funamp nampor -reamp e ampree4n= fu unfu namp feonou ueamp namp ampe ou Rur Bn= ofDo In- +e-= No 0)882 ampeamp De-e4er 1) 2000 n e oun of

51)120000 n f$or of uo 5u Tramper In- 4u en amp -e-= preeneamp o e ampree 4n= for en-en e e amponoreamp fore reon DRN GINST INSFFI+I3NT FNDS namp ampepe no-e ofamponor namp ampenamp upon amp --ueamp o =e ooamp e -e-= --ueampfeamp namp refueamp o =e pen o e ampe namp preuamp-e of eren-opnn I3+DH+ONTRRC TO Cnaamp Ca$( N 12521Te unamperneamp --ue e 4o$eneamp --ueamp for $oon of B

11



54n Bn 22 -oeamp fooT on or 4ou O-o4er 0 2000 n e + of D$o 5ppne nampn e uramp-on of Honor4e +our e 4o$eenoneamp --ueamp=non fu e e amp no uff-en funamp nampor -reamp e ampree4n= fu unfu namp feonou ueamp namp ampe ou Rur Bn= ofDo In- +e-= No 0)90(9 ampeamp O-o4er 0 2000 n e oun of

597)0000 n f$or of uo 5u Tramper [In-] 4u en amp -e-= preeneamp o e ampree 4n= for en-en e e amponoreamp fore reon DRN GINST INSFFI+I3NT FNDS namp ampepe no-e ofamponor namp ampenamp upon amp --ueamp o =e ooamp e -e-= --ueampfeamp namp refueamp o =e pen o e ampe namp preuamp-e of eren-opnn+ONTRRC TO

5eoner peampeamp no u Tr on e er enueamp fer e preenon of eproe-uon e$ampen-e peoner feamp ampeurrer o e$ampen-e On pr 21 200 e ltT++rneamp e ampeurrer u

H3R3FOR3 e ampeurrer o e$ampen-e rneamp preeamp on reon4eampou4 o e u of e --ueamp +ruer Bu ne[] namp Trnpor+orporon rou e --ueamp ampre-eamp o p e -opnn e uof 52(870000 repreenn e $ue of e o -e-= nere ere of 12A per nnu o 4e -opueamp fro e e of e fn of ee-e n +our un e --oun pamp n fu orampern furer +ruer Bune[] namp Trnpor +orporon rou e --ueamp o re4ure-opnn e epene repreenn fn fee ounn o 5178000 namp-o of on - +our ere4 feamp 5)00000 -IDHS+SO ORD3R3D 5

5eoner o$eamp for pr re-onamperon 4u oon ampeneamp Terefer 4opre ppeeamp o e RT+ On Fe4rur 2( 200( e r -our rueamp

H3R3FOR3 e eamp Oramper ampeamp pr 21 200 ere4 ltODIFI3Do reamp foo --ueamp ampre-eamp o p nampor re4ure e-opnn e foon u 61 52(870000 repreenn e $ue of eo -e-= nere e re of 12A per nnu o 4e -opueamp froe e of e fn of ee -e n +our un e --oun pamp n fu 625178000 for fn fee namp 5)00000 -o of onSO ORD3R3D 6

5eoner o$eamp for re-onamperon 4u oon ampeneamp on lt 11 200( 5eoneree$eamp e -e o e +our of ppe - ffreamp e Fe4rur 2( 200( De-on namplt 11 200( Oramper of e RT+

WHEREORE pree -onampereamp e nn peon DENIED Teeamp De-on of e Reon Tr +our Brn- 1 D$o + ampeampFe4rur 2( 200( namp Oramper ampeamp lt 11 200( re AIR+EDSO ORDERED 7

5eoner no -oe 4efore u rn e oe ue of eer e +our of ppe erreampn upoampn e RT+ run peoner n off-er of e -orporon peron namp-$ 4e o e pr$e reponampen for e $ue of e o -e-= 85eoner er P l$ 22 ere pern o e -rn 4 of e --ueamp namp e -orporon - epre peron fro off-er oe 4e for e$ue of e o -e-=5r$e reponampen -ouner peoner ouamp 4e eamp peron 4e for 4o -e-=

12



5r$e reponampen eeamp peoner ueamp o poampeamp -e-= peron -e-= n ne for e oun of 51)1200 namp -orporon -e-= unamper e --oun of +ruerBu ne namp Trnpor +orporon for e oun of 597)00 --orampn o pr$ereponampen peoner 4 un -e-= o -o$er e o4on of e -orporon 4e-en --ooampon pr namper Se-on 29 9 of e Neo4e Inruen n--ooampon pr 4e on e nruen o oamper for $ue 5r$e reponampen

ampamp peoner ouamp o 4e 4e for e $ue of e -orporon -e-= 4e-uenun noer -$ -on n e -orporon ouamp reu n up- of u nampampe -H3TI

e oue e noe pr$e reponampen eon peoner ueamp peron-e-= amppue e f-u fnampn of e ltT++ Te ltT++ founamp e o -e-= 4eono +ruer Bu ne namp Trnpor +orporon e e RT+ founamp one of e -e-= peron -e-= of e peoner Gener +our n peon for re$e oncertiorari unamper Rue () of e Rue of +our no uramp-on o$er ueon of f- Bu-onampern e fnampn of e ltT++ namp e RT+ re $rn-e 1 e re -opeeampo ee ue

peru of e o -e-= reurn p 11 n -onun-on e +urren --oun Seen12 ouamp o e -e-= for 51)1200 amprn n e -urren --oun of +uampeBu e e -e-= for 597)00 amprn n e -urren --oun of +ruer Bune namp Trnpor +orporon Hen-e e un e f-u fnampn of e RT+Noneee e fnamp e ppee -our n error for ffrn e ampe-on of e RT+ oampnpeoner 4e for e $ue of e -e-= -onampern peoner -ueamp of e-re -reamp namp e ampe4 re -er -orpore ampe4 for - on +ruer Bu nenamp Trnpor +orporon ouamp 4e eamp 4e ID+-Juramp- ene $e perone epre namp ampn- fro off-er namp e peron-opon 13 Gener e o-=oamper namp off-er re no peron 4e for eo4on of e -orporon e-ep on en e $e of -orpore f-on 4en ueamp -o= or -o$er for fruamp or e or o or= nu-e 14Tee uon oe$er ampo noe n -e Te e$ampen-e o +ruer Bu ne namp Trnpor +orporon o4on o uo 5u Tramper In- for re Tere no reeen peoner 4e eamp 4e for e -orporon o4on n peron -p- Hen-e e -nno4e eamp 4e for e $ue of e o -e-= ueamp n pen for e -orporono4on n e o oun of 52(8700=ee -onrr o pr$e reponampen -onenon peoner -nno 4e -onampereamp 4e n --ooampon pr for +e-= No )882 Se-on 29 of e Neo4e Inruen ampefne n --ooampon pr peron o neamp e nruen =eramprer --epor or namporer ou re-e$n $ue erefor namp for e purpoe of enampn ne o oe oer peron eneamp fro e e n --ooampon pr oneo ee e ree reue viz7 61 e u 4e pr o e nruen nn =er amprer --epor or namporer 62 e u no re-e$e $ue erefor namp 6 e un for e purpoe of enampn ne or -reamp o oe oer peron 15 n--ooampon pr enamp ne o en4e e --ooampeamp pr o o4n -reamp or ore one e re-e$e no pr of e -onamperon for e nruen 4u ue 4o e oer pre ereo 16 Te fr o eeen re preen ere oe$er ere nuff-en e$ampen-e preeneamp n e nn -e o o e preen-e of e ramp reue

e e$ampen-e o peoner neamp +e-= No )882 - amprn n peron --oun Te amp -e-= dated December 89 ampampamp -orreponamp o e $ue of2( e of re re-e$eamp 4 +ruer Bu ne namp Trnpor +orporon on uu 29 200017 Tere no on of en peoner ueamp e -e-= namp n -p- In e

13



4en-e of -on-ree e$ampen-e -nno u 4e ueamp peoner nenampeamp o enamp ne o e -orporon Hen-e peoner -nno 4e -onampereamp n --ooampon pr

D-H3S +ruer Bu ne namp Trnpor +orporon oe$er ren 4e for e -e-=epe- n-e ere no e$ampen-e e ampe4 -o$ereamp 4 e u4e- -e-= $e 4een

pampH3R3FOR3 e peon GRNT3D Te De-on ampeamp uu 10 200( namp eReouon ampeamp O-o4er 29 200( of e +our of ppe n +GR +R No 28(( reR3V3RS3D namp S3T SID3 +rn +e No )20 namp )2(0 re DISltISS3Dou preuamp-e o e r of pr$e reponampen uo 5u Tramper In- o fe e proper-$ -on n +ruer Bu ne namp Trnpor +orporon for e $ue of e o-e-=No pronoun-een o -oSO ORD3R3D

14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]

ENERAL CREDIT CORPORATION -n PENTA CAPITAL INANCECORPORATION petitioner vs ALSONS DEELOP+ENT andINEST+ENT CORPORATION and CCC EUITY CORPORATIONrespondents

D E C I S I O N

ARCIA J p

In peon for re$e on certiorari unamper Rue () of e Rue of +our peoner Gener+reamp +orporon no =non 5en +p Fnn-e +orporon ee= o nnu namp eampe e De-on 1 namp Reouon 2 ampeamp pr 11 2002 namp uu 20 2002 repe-$eof e +our of ppe 6+ n )10 )3 lto 8=amp8 ffrn e No$e4er 8 1990ampe-on of e Reon Tr +our 6RT+ of lt= + n +$ +e No 12707 n -onfor u of one ere nueamp 4 e eren reponampen on De$eopen nampIn$een +orporon n e peoner namp reponampen +++ 3u +orporonTe f-Sor fer n-orporon n 19)7 fnn-e namp n$een -opn peonerGener +reamp +orporon 6G++ for or en =non +oer- +reamp +orporon

6+++ e4eamp +++ frn-e -opne n ampfferen ur4n -ener of e -ounr 3 Infurern-e of 4une G++ amp er 197( ppeamp for namp 4e o e-ure-ene fro e en +enr Bn= 6+B of e 5ppne namp e Se-ure namp 3-ne+oon 6S3+ o ene o n u4n=n -$e 4 On e oer nampreponampen +++ 3u +orporon 63MITC for 4re$ orneamp n No$e4er 199(4 G++ for e purpoe of on oer n =n o$er e operon namp neenof e $rou frn-e -opne e er ereo reponampen onDe$eopen namp In$een +orporon 6SONS erenfer namp +onrampo N-o3amp namp amp urneamp -nr namp freampo ampe Bor 6erenfer e -nrf for -on$enen-e e- oneamp u =e G++ re n e foreamp G++ frn-e-opne e$ +++ D$o namp +++ +e4u

In De-e4er 1980 SONS namp e -nr f for -onamperon of To lton65200000000 5eo oamp er reoampn L o of 1019) re ore or e Ln e +++ frn-e -opne o 3MITC 5 On Jnur 2 1981 3MITC ueamp SONSet al 4erer proor noe for 5200000000 oneer ur ampe 18Anere per nnu pro$on for ampe namp on -o n -e of ampefu 6Soe four er er e -nr f neamp r namp nere o$er e 4erernoe o SONS - en-efor 4e-e e oamper ereof 7 Bu e$en 4efore eee-uon of e nen ampe foreeamp eer of ampenamp for nere pen erereamp en o 3MITC rou 5reampen freampo 4en o peampeamp n4 o p

15



e pueamp nere 3MITC no oner en $n e or proper o ee o4on nor 4en eenampeamp fnn- uppor 4 G++ ppeneamp ne nrreamp n e eamp De-on of e + 4e ureamp foo

1On Jnur 1( 198 4efore e RT+ of lt= SONS $n feamp o-oe- on e 4erer noe foreenoneamp feamp -opn for u of

one 8 n 3MITC namp G++ Te -e ampo-=eeamp +$ +e No12707 e$enu rffeamp o Brn- )8 of e -our eamp n pr ( ofe -opn G++ 4en peampeamp prampefenampn for n uampen

SONS e-ure n 3MITC namp unamper e ampo-rne of per-n e$e of -orpore f-on n G++ 3MITC $n 4een orneamp oo namp ere -onampu of G++2nern -ro- n G++ 3MITC eamp 4 ofpe- namp ffr$e ampefene 63MITC

purpoe orneamp 4 G++ for e er o $oamp +B Rue nampReuon on DOSRI 6Dre-or Off-er So-=oamper namp ReeampInere on namp -eamp ere nereampr or 4rampefor on rn-on namp oer ampen of G++ o frn-e nampe n$en pu4- namp4 oe ampepenampen upon G++ for funampn reureen o eeon oer eu pur-e ampe 4 n$eor on e frn-een-e G++ oe namp ampre- 4e o SONS e forer $nfeamp o pro$ampe 3MITC e ne-er funamp o ee o4on o SONS 3HTIS+

G++ feamp 1ltS2gt to )ross0claim ren ampn- nampepre en fro 3MITC namp en n een-e e 4unereonp e- oer ere r en namp foon eampen of oon o amp SONS -opn on e rounamp of -= of

uramp-on namp n of -ue of -on G++ feamp 1ns-er ereo namp eup ffr$e ampefene -ouner- for eepr ampe namporne fee

Iue $n 4een oneamp r enueamp 5reeneamp 4 SONS 4u efn amp$erenee ere +B namp G++ off-er on oer n SONS e$ampen-e -n-uampeamp e 3MITCueamp 4erer proor noe r=eamp 34 K namp o$er 60 oer r=eamp namp u4euen ampeamp ampo-uen9 ere o e effe- f$e 6)n-orporor e- -onr4un 510000000 e n pamp up -p of e -opnorneamp 3MITC o ne ampamp ne $rou G++ frn-e rouneen -onr- Before 3MITC n-orporon oe$er G++ reamp no efnn-n 4une n f- nn namp opern $rou +++ frn-e5reeneamp n e$ampen-e oo e Sepe4er 29 1982 eerrep of one G Vnue$en G++ 5reampen o 3MITC 5reampen freampo 4en 4ern on e e of 3MITCre o ramp pre pr of e pro-eeamp of - e -nr neamp ppeamp ouampe e proor noe n ueon In amp eer ltr Vnue$ epneamp e G++Boramp ampeneamp e -nr reue o 4e pamp ou of u- pro-eeamp 4u noneeeuoreamp 3MITC o p e nere ou of 3MITC operon n-oe n preferen-eo$er ampue G++ 1

4e 3MITC preeneamp preampen opeamp o ampop e eon of oe of SONSnee n-u$e of e ampo-uenr e4 efeamp o 4 e- of e e$ampen-eFor pr G++ -eamp on freampo 4en o ef I u-= o unampern ampefene of

16



eprene namp preeneamp ampo-uenr e$ampen-e ampen e ornon ru-ure of4o G++ namp 3MITC namp n 4amp o nee e noon -onampu-n 4unee G++ preeneamp +B namp S3+ueamp -ene uorn o ene n fnn-n nampu4n=n -$e I o ampampu-eamp e$ampen-e o pro$e ne$er pr o n ofe -on4e ampo-uen SONS namp preampe-eornnere amp n er poeonnamp e No$e4er 27 198) ampeeamp of nen of r o$er e proor noe

unenfor-e4e3$enu e r -our on fnampn 3MITC 4u n nruen or ampun- ofG++ namp -onampern e e -oneuen-e namp p-on of u- reonp -e ou ampe-on on No$e4er 8 1990 renampern uampen for SONS o

H3R3FOR3 e foreon pree -onampereamp uampen ere4renampereamp n f$or of pnff [SONS] namp n e ampefenampn [3MITCnamp G++] o re ere4 orampereamp on namp e$er o p pnff1e prn-p u of To lton 5eo 65200000000 oeer enere ampue ereon e re of eeen per-en 618A nnu -opueampfro Jn 2 1981 un e o4on fu pamp2uampeamp ampe ampue ereon eu$en o ree per-en 6A on-opueamp fro Jnur 2 1982 un e o4on fu pamporne fee n n oun eu$en o en four per-en 62(A of eo o4on ampue namp(e -o of uIT IS SO ORD3R3D 6oramp n 4r-=e ampampeamp

Terefro G++ en on ppe o e + ere ppee re-oure ampo-=eeamp )10 )3 lto 8=amp8 -r4n o e r -our e -oon of e foon error

1In oampn ere 5renSu4ampr -orpore reonp 4eeen3MITC namp G++

2In no oampn 3MITC namp G++ re ampn- namp epre -orporeene

In ppn e ampo-rne of 5er-n e Ve of +orpore F-on n e -e 4r namp

(In no oampn SONS n eoppe o ueon e -orpore peron of3MITC

On pr 11 2002 e ppee -our renampereamp e eren eamp De-on 11 ffrn of e r -our u

H3R3FOR3 pree -onampereamp e De-on of e Reon Tr +ourBrn- )8 lt= n +$ +e No 12707 ere4 FFIRlt3DSO ORD3R3D

In e G++ o$eamp for re-onamperon fooeamp 4 oon for or ruen 4u 4ooon ere ampeneamp 4 e + n eu eamp Reouon of uu 20 2002 12Hen-e G++ preen re-oure n-oreamp on e foon ruen ue namporu4on

1Te oon for or ruen oon for re-onamperon namp uppeen ere perfun-or ampeneamp 4 e + ou uf4e 42Tere 4oue no 4 for per-n e $e of -orpore f-onReponampen on no re prnnere e proor noep4e o 4erer u4e- of e -oe-on u 4u ueamp ampo-uennampor refer o noer pr ltoreo$er e u4e- proor noe noamp4e n e$ampen-e 4e-ue no 4een ampu uen-eamp namp nereamp ampo-uen

17



(Te f- of fu pen eamp n e en 610 ampeeamp of e of e re ofo-= -on-u$e on e eer namp 4 e pro e$ampen-e rue e eeampf- of nonpen -nno 4e nroampu-eamp n e$ampen-eamp namp)Te -ouner- feamp 4 G++ n on ouamp 4e rneamp n enere of u-e

Te peon namp e ruen nampor ue oampn oeer re ou er Te

ampereamp re$er of e eamp ampe-on namp reouon of e ppee -our --orampnDENIED 3-H+ Ineamp of rn ampn- forueamp ueon of epe-eamp of one ee=n re$e unamper Rue () of e Rue of +our of fn + uampen 13peoner G++ r off4 $o-n amppponen o$er e perfun-or ampen 4 e + of n oon forre-onamperon namp or ruen 5eoner o 4e ure -nno pu4 epe- re$er-on preeamp on e -uror oon ere ampeneamp f u- nampeeamp ere e -eSu- nner of ampen e perp fr fro ampe no e$en re-oneamp rounamp forppe 4 certiorari une ampen of ampue pro-e enue - no e -e ere nampe 4e o$eroo=eamp e + pref-eamp eamp ampen reouon e -ue Findin$no reversible error committed to -arrant the modification and5or reversal of the 1pril 88 ampampDecision uen e ppee -our $e e peoner oon for re-onamperone enon ampeer$eamp e $er e e peoner ampu ppreamp of e reon re-onamperon -ouamp no 4e f$or4 -onampereamp n eenampeamp reouon no rene-er o amppoe of e oon for re-onamperon n ueon5eoner en 4ou 4en ampepr$eamp of pro-eampur ampue pro-e on o e ampen of oon for or ruen p pe-ou namper e + Inern Rue e ppee -our p n of e ree 6 ern$e eren pro$ampeamp o amp e -our n reo$nppeeamp -e 4efore I re on $4e re-oramp one reure e u4on ofeornamp or e e -e for or ruen Te opon e Inern Rue u $e e +ne-er ue e ppee -our ounamp amp-reon amppene eampou or ruen eer-e Rue VI Se-on of e 2002 Inern Rue of e +pro$ampe

SEC 6Judicial Action on Certain Petitions L 6 In peon for re$efer e re-ep of e reponampen -oen on e peon e +our [of

ppe] amp e peon f fnamp e e o 4e pen ouer oere $e ampue -oure o

If e peon $en ampue -oure e +our -onamper e -e u4eampfor ampe-on or reure e pre o u4 er eornampu or e e -efor or ruen fer e or ruen or upon u4on of eeornamp e -e 4e ampeeeamp u4eamp for ampe-on

In e -e 4en- re-oramp re$e e ppee -our n ne e pre-rpon of on rue reureamp e pre o u u4 e ampamp er repe-$e eornamp oproper $ene er epre -ue namper -enro e peoner -nno 4e $amperamp $n 4een ampepr$eamp of ampue pro-eJu =e e fr e ree 6 ruen e for n e peon no -rr e amp fore peoner In reon ere e +our noe ee ruen namp e ue4enamp e ere no reamp 4efore e r -our T ppee neu$er -nno 4eoeamp For eeeamp e rue ue or rounamp no reamp 4eo -nno 4ereo$eamp on re$e n er -our 14 Sprnn urpre on e oppon pr ne- o e porn ampe of fr p u-e namp ampue pro-e en-e e pro-rpon

18



n pr fn fro one eor e r -our o ne namp ampfferen eor n eppee e$e On e e rone pon of eore ue no 4rou o eenon of e oer -our or n fne no nerpoeamp ampurn e r -nno 4e reamp for efr e on ppe 15Tere re o 4e ure e-epon o e rue repe-n 4e reamp for e fr eon ppe -= of uramp-on o$er en e ue reamp preen er of pu4- po-

16 -oe eampe o namp None of e ere-oneamp e-epon o4n n -eoe$ere 4e o$eroo=eamp vis00vis e e ree ruen u preeamp 4o e r -ournamp e + 4eamp on e e$ampen-e ampampu-eamp ampuampeamp e peoner namp reponampen3MITC on namp e$er 4e o p reponampen SONS eneamp o unamper e4erer proor noe Te uampen rue n e noon of e noe 4en ueampor ereamp or reponampen SONS no nampn o ue on e noe no 4en epee of e 4erer noe For e ampe-ron of 4 no on preuppoe e ampue4eamp uen- namp ampue ee-uon of e proor noe o$er - SONS e oamper n ampue -oure ereof nere 4u o e unen4 of e peoner-ouner- for orne fee namp eepr ampe n SONS 4oo epeoner preamp-eamp u- -ouner- on e poue reponampen SONS amp no-ue of -on e uppoeamp proor noe 4en --orampn o e peoner eer ueamp or n ereamp ampo-uenIn ne effe- e ampefn$e -on-uon of e ppee -our L ffror of of e r-our L e 4erer proor noe 63 K enune namp uen-nruen p4e o e oamper ereof T f-u ampeernon er of on nampounamp ppee pr--e ampeer$e re e namp no 4e ampur4eamp on ppe $efor e o -open reon 17 u- en ampeernon -er oue$ampenr uppor or en r$e 4ue of amp-reon 4een -oeamp 18 T ouamp 4e n-e e +our n peon for re$e of + ampe-on unamper Rue () of e Rueof +our uu nur on o ueon of Seamp oere no efun-on of e +our o ne namp e o$er n e e$ampen-e or pree uppor$eof e f-u oampn of oer -our 19

non n e re-oramp namp-e n of e e-epon amp$ereamp o 4o$e e f-u-on-uon of e + e 52 lton proor noe n ueon uen- namp ueamp e fr nn-e o reponampen SONS namp e -nr f for e ouneamp on f-e u 4e ffreamp I ouamp 4e reeamp n reramp e$en e unen ie reponampen 3MITC ne$er -eneamp e enunene namp ampue ee-uon of enoeT 4rn u o e renn 4u -ore ue enampereamp n -e namp p reamp 4 epeoner o eer ere 4oue no 4 for per-n G++ $e of -orporeampen

-orporon n rf- 4en $eeamp 4 peron ampn- namp epre frooe of e peron -opon 2 e fro of n oer en o - 4e reeamp 21 Te fr -oneuen-e of e ampo-rne of e en of e epre peronof e -orporon -orporon no 4e ampe o ner for - namp 4e of o-=oamper or oe of e ene o - 4e -onne-eamp or $-e $er 22Te noon of epre peron oe$er 4e amprerampeamp unamper e ampo-rne Lper-n e $e of -orpore f-on L n f- e -our ofen oo= e -orporon ere -oe-on of namp$ampu or n reon of peron unamper=n 4une roup amprerampn e epre uramp- peron of e -orporon unfn e roup

noer foruon of ampo-rne en o 62 4une enerpre re oneamp

19



-onampu-eamp namp -onroeamp 4 e e pre 4o namp eu en ne-er oproe- e r of ramp pre ampreramp e e f-on o -orporon re ampn-ene namp re e ampen- or one namp e e 23eer e epre peron of e -orporon ouamp 4e per-eamp ne on o4nnf- ppropre peampeamp or pro$eamp Hoe$er n per-n of e -orpore $e o 4eampone -uon 4e e +our no ee o ampreramp e -orpore $e en

ueamp or en ne-er n e nere of u-e 24 fer e -on-ep of -orporeen no en o prooe unfr o4e-$e I+DS uore re reeamp on e ree 6 4- re ere per-n e $e - e -o$er namp oe e -orporon fro n oer e en o - 4e reeamp oeamp 25 Tee re 1 ampefe of pu4- -on$enen-e 26 en e -orpore f-on ueamp $e-e for e e$on of n en o4on 27 2 fruamp -e or en e-orpore en ueamp o uf ron proe- fruamp or ampefenamp -re 28 or alter e$o-e ere -orporon ere fr-e n-e ere er eo or 4une -onampuof peron or ere e -orporon o orneamp namp -onroeamp namp ffr re o-onampu-eamp o =e ere n nruen en- -onampu or ampun- of noer-orporon 29Te + founamp $amp rounamp o per-e e -orpore $e of peoner G++ ere 4en

uf4e 4 for u- -on en e ppee -our po=e of ufn f-or ereferen-e o e r -our amp n ampe-on ne e een-e of certaincircumstances -hich taken to$ether $ave rise to the ineluctable conclusion that respondent gtATY is but an instrumentality or adunct of petitioner )) Te +our ree e amppoon of e ppee -our on e pp-on of e per-nampo-rne o e rn-on u4e- of -e 5er e +our -oun e r -ourenuereamp no e n 20 ampo-ueneamp -r-un-e namp rn-on - =en p-=e nampeeamp ron upporeamp e -on-uon reponampen 3MITC 4u nampun- n nruen or 4une -onampu of peoner G++ T reon n urnpro$ampe ufn rounamp o per-e peoner -orpore een-e o SONS - nueon Foreo of e r -our referreamp o -ern -r-un-e re e-oon of ampre-or off-er namp o-=oamper namp e$en rn of off-e 4eeenpeoner G++ namp reponampen 3MITC -ern fnn-n namp neen rrneen4eeen e o on e peoner o nampe e funamp of e er e $ruamponon f no -onro eampeamp 4 e peoner o$er e fnn-e 4une po-e namppr--e of reponampen 3MITC namp e e4en of reponampen 3MITC 4 epeoner o -r-u$en +B rue For perpe-$e e foon re oe ree$n e-erpfro e r -our ampe-on en for n oe ampe e ppn -r-un-e amp$ereamp oeren

I u 4e noeamp -r-ereamp 4 er 4une reonp[reponampen] EUITY and (n( CC ad )n d()$ andltlt)($ a$ (ampamp a$ $)=ampd($ T re$eeamp 4 e pro-eeampnre-orampeamp n S3+ +e No 2)81 eneamp 1velina amoso et al vs )) etalere e4eamp ru e eon of 3MITC on5reampen ore n 90A of e o-=oamper of 3MITC ereo o-=oamper of G++ D-oeamp =ee e f- en[3MITC 5reampen] 4en oamp e reoampn of 3MITC n ampfrn-e -opne pr-- e enre pro-eeamp ereof ere urrenampereampo G++ namp no re-e$eamp 4 3MITC 63EHIBIT RR I =ee on 4 preponampern-e of e$ampen-e no on amp

20



CC ltnan)(d EUITY namp e er e$ nampe4eamp o eforer 4u EUITY a$ n lta) a ampamp n(d $gt$da lt CC Tu ffreamp 4 3MITC 5reampen e ltgtnd$ n0($(d EUITYn ( CCC ltan)$( )an($ a)gtaampamp )a( lt CCC Pamp$ CC634 C) amp-oeamp 4 e uampor repor for 1982 p ampuere-e$4e one of G++ e-eeampeamp 510100000000 o o G++ ffe

epe- +++ 3MITC [+B] Repor of 3non ampeamp Ju 1(1977 o 3MITC - pampup -p of on 5)0000000 e 4e 4orroer of G++ o on of 570 lton

I =ee 4een p u4neamp 4 [reponampen SONS] e$ampen-e no on ampamp G++ -ue e n-orporon of 3MITC 4u eer amp ro nampeue -p for e puru of ne of 4une o eeen $ gt$n($$ altlta$ (( )n$d((d a$ CC$ n gt$n($$(nd(a0$

SONS =ee on e 4onue of e off-er namp ampre-orof 3MITC 4eamp on o fnn- perforn-e oeer ffe 4o fr ere rn one namp e e off-e en 4o ere operon namp e ampre-or namp ee-u$e of EUITY n(0(a)(d nd((nd(namp gt = ( d($ lt CC T( (0d(n)( a$ aamp$ ndgtaamp ($aamp$(d a EUITY a$anB(d CC lt ( gt$( lt ))gt0(nn C gtamp($ and(gtampan$ and ( AnU$gt La Tu amp-oeamp 4 e amp$n-eRepor on e reu of +enr Bn= Operon 3non -onampu-eampon G++ of ltr- 1 1977 63EHIBITS FFF e- e er $oeamp[+B] rue namp reuon 4 6 un -onampu nonu 4n=ffe 64 un ou re-oure f-e o en4e G++ o eenamp-reamp o ffe =e 3MITC - o 4eonamp e ne 4orroer ou e neeamp of on ounampn 4n-e n e 4oo= of --oun63p o$er oramp n 4r-=e ampampeamp

I 4er o re pon e f- namp e nferen-e amprn erefro upon -e o 62 -our 4eo ppeamp e per-n ampo-rne namp for e o pr unamppueamp

on ee o reere e er of 3MITC $n 4een n-orporeamp o er$e ampamp er$e n nruen or ampun- of G++ e $e e =e of -e G++ampamp no ampampu-e n e$ampen-e e one re4u e eone namp ampo-uen preeneamp 4

SONS o e4 e pre$n -r-un-e amp$ereamp o pro$ampeamp e ufno--on o per-e e $e of -orpore f-on 4eeen G++ namp 3MITC e uoe e r-our

Ver nampeeamp e reonp 4nampn eren [reponampen 3MITC namppeoner G++] $e 4een of prenu4ampr -orporon eforeon prn-pe namp ampo-rne fnamp u4e pp-4 n e -e 4rnamp $n 4een f-or namp nampu44 on e ampreonp amp 4een ueamp o perfor -ern fun-on no -r-ereamp e- +our fee p ufeamp o per-e e $e of-orpore en and d$(ad ( $(aa( ($(n)( lt ( ()(n 6-and $gt$da ( ampa( a0n ((n $ )nampamp(d ( a(n a $$(aa( d(n $ adamp d$)(namp( gt$ ()n a ((n$gt(naamp aamp( ( lt ( lt( +oneuen e pren

21



-orporon [peoner] G++ 4e 6- eamp repon4e for e - namp-onr- of u4ampr L [reponampen] 3MITC L o epe- f eer 6o amp no -=noeampeamp 4 o SONS 4e 6-ou uff-en proper - o ee o4on For fer G++ e en - neamp namp 4enefeamp ene fro efruampuen -ee perpereamp n $oon of e 6oramp n prene n

e orn ep namp 4r-=eeamp oramp ampampeampG$en e foreon -onamperon 4eoo$e e peoner er of namp euo ue e ee fnn- o4on of -rppeamp u4ampr -orporon - $ru -onroeamp o u- amperee e er 4e-e nruen or en Tef- founamp 4 e -our a uo namp e pp-4e - for =namp of amppoon Oree e +our ouamp 4e on e ron ue of e f-on of -orpore $eH3R3FOR3 e nn peon D3NI3D namp e ppeeamp De-on namp Reouon ofe +our of ppe re --orampn FFIRlt3D+o n e peonerSO ORD3R3D

22



THIRD DIVISION

[GR No 1(8( June 18 2008]

STA +ONICA INDUSTRIAL AND DEELOP+ENT CORPORATION petitioner vs THE DEPART+ENT O ARARIAN REOR+ REIONALDIRECTOR OR REION III PROINCIAL ARARIAN REOR+ OICERO ULACAN +UNICIPAL ARARIAN REOR+ OICER OCALU+PIT ULACAN and ASILIO DE U+AN respondents

D E C I S I O N

REYES RT J p

ANG Malawak na Batas sa Repormang Pangsakahan ay binuo upang makalaya angmga magsasaka mula sa tali ng kahirapan at paghahari ng mayari ng lupaapag ang kathangisip na korporasyon ay ginamit na tabing sa katulad na pyudal na

pangaalipin ang matayog na hangarin ng batas pambukid ay nabibigo at angmismong suliranin na nais lunasan nito ay nananatili

Ang belo ng kathangisip na korporasyon ay pupunitin kapag ito ay ginamit sa malinghangarin at ditapat na layuninThe )omprehensive 1$rarian eform +a- 1 -as desi$ned precisely to liberate peasant0farmers from the clutches of landlordism and poverty2hen corporate fiction is used as a mere smokescreen to the same form of feudal servitude

the lofty aim of the a$rarian la- is th-arted and the very problem -hich the la- seeks tosolve is perpetratedThe veil of corporate fiction -ill be pierced -hen used for improper purposes and unfairobectivesBefore peon for re$e on certiorari of e De-on 2 of e +our of ppe 6+ampn e peon of S lton- Inampur namp De$eopen +orporon 6S lton-o nnu e Oramper 3 of e Reon Dre-or Reon III Depren of rrn Refor6DR p-n e nampoampn of un-on Trnampamp unamper e +opreen$e rrnRefor 5ror 6+R5 4

T( a)$

Trnampamp e oner of f$e pr-e of namp o re of (9 e-re n I4 3e+up Bu-n 5r$e reponampen Bo ampe Gun e r-uur eeoamp ennof TrnampampOn pr 29 197 eeoamp -onr- ampenoneamp BCasunduan n$ u-isan saSakahanB ee-ueamp 4eeen Trnampamp namp ampe Gun 5 n r-uur eeoampenn ampe Gun ueamp +erf-e of namp Trnfer on Ju 22 1981 6Dern o $e n en-pon pen o$er e namp unamper e ampe Gun feamp peon for e un-e of pen n ne e Off-e of e Reon Dre-or of eDR 7 Te e Ser$-e D$on of e DR ampu en no-e o Trnampamp reurn er o

23



-oen Ineamp of -opn Trnampamp feamp oon for 4 of pr-ur 8 fer ampue pro-eeampn e Reon Dre-or ueamp e Oramper 9 rnn e peon of ampeGun e foon amppoon

H3R3FOR3 n of e foreon n namp e reon namp-eampereon n ORD3R ere4 ueamp foo15+ING unamper e -o$ere of Operon namp Trnfer 6OT purun o

5D 273e-u$e Oramper No 228 e nampoampn of un-on Trnampamp nre of 10800 e-re ore or e o-eamp I4 3e +upBu-n ou preuamp-e o e eer-e of er reenon r f ufeampunamper e 2DIR3+TING e ltRO of +up Bu-n namp e 5RO of BuBu-n o -ue e eneron namp un-e of 3n-pon 5en n f$orof e peoner namp oer ufeamp frer4enef-re o$er e ampnampoampn n --orampn-e e -u re of e 1

Trnampamp feamp oon for re-onamperon 4u er oon ampeneamp 11 er er peoner S lton- feamp peon for certiorari namp pro4on e +n e oramper of e Reon Dre-or In peon S lton- -eamp e rue un-on Trnampamp e forer reereamp oner of pr-e of namp n re of889 ure eer e amp nampoampn oamp on Jnur 27 198 125eoner 4e o -ure 9)(7 ure eer of e Trnampamp proper fer e epeoner ou e reron of e poron pernn o 4efore e Reer of Deeamp ofe 5ro$n-e of Bu-n +oneuen -orreponampn Trnfer +erf-e of Te No01(08 6no T+T No RT 70)12 ueamp n f$or of peoner 13I ereamp ere ampen of ampue pro-e of 4e-ue no furneamp no-e of -o$ere unamper e +R5 14In -oen on e peon ampe Gun rueamp e eeamp e of e nampoampn e ampue o e -= of reue -ern-e fro e DR Te amp -ern-e reureampunamper 5D No 27 15 e Tenn 3n-pon De-ree - pro4 rnfer of -o$ereampnamp e-ep o enn4enef-re --orampn o ampe Gun n-e no -ern-e oufro namp rneamp 4 e DR e e n f$or of peoner 4 Trnampamp neen namp$oamp Hen-e Trnampamp reneamp e oner of e amppueamp proper

CA D$$n

On lt 2 200( e + renampereamp ampe-on ampn e peon of S lton-amppon foo

H3R3FOR3 pree -onampereamp e nn peon ere4 D3NI3D for-= of erSO ORD3R3D 16

Te + eamp S lton- no re prnnere 4e-ue -nno 4e -onampereamp n oner of e namp 4ou fro Trnampamp u 17

I pper fro e re-oramp of -e e e 4eeen Trnampamp namp epeoner enoneamp 4 Depren lteornampu +r-ur No 2peenn e pro$on of 5reampen De-ree 65D No 27 -pro4 e rnfer of onerp of nampoampn -o$ereamp 4 5D No 27fer 21 O-o4er 1972 ou e reue -ern-e fro e DR e-ep oe enn4enef-r Tu e e o e u4e- nampoampn reneamp e pre$ou oner un-on Trnampamp T effe-$e ampepr$e e peonerof nere o ueon e oramper of e Reon Dre-or of e DR re$eo e er ampre-$e p-n e u4e- nampoampn unamper e -o$ere of

24



Operon namp Trnfer namp e u4euen un-e of n 3n-pon5en n f$or of pr$e reponampen ampe Gun One $n no r ornere o proe- -nno n$o=e e uramp-on of e -our pr pnff6n -e peoner n n -on re pr n nere e pr onamp o 4e 4enefeamp or nureamp 4 e uampen n e u or e preneamp o e $ of e u 18 6+on oeamp

Te + ampampeamp e$en un S lton- re prnnere noampeneamp ampue pro-e 4e-ue amp -onru-$e no-e of e pro-eeampn - n$o$eamp proper

3$en un ou ampn peoner e re pr n nere 4reon of e e of e u4e- nampoampn n f$or -nno 4e amp peoner ampeneamp ampue pro-e 4e-ue of -= of no-e of epro-eeampn 4efore e DR I nf-n o noe un-on Trnampamp e reurer of peoner 4eamp on e -orporon Gener InforonSee e -nno 4e amp ere proper no-e o e -orporon4en -orpore off-er of e peoner ere e -onru-$eno-e of e f- ere pro-eeampn - n$o$eamp e proper ofe -orporon of - 4e ampepr$eamp ouamp n amp$ere ampe-on 4erenampereamp 4 e DR 19

Te + o rueamp e eamp oramper of e Reon Dre-or $e reamp neampfn 4e-ue no ppeeamp o e DR Se-rer

Furerore e eamp oramper $e on 4e-oe fn namp ee-uor ere4en no ppe unamper=en o e Se-rer of e Depren of rrnRefor +n Fortich vs )orona et al e Supree +our p rueamp n e

Te oramper ampnron of u-e reure e uampenreouon of -our or uuamp- 4oamp u repon of fn e 4 rue namp reuon Te no4e purpoe o re finis o amppue on-e namp for T funampen prn-pen our u-e e ou - ere ouamp 4e no enamp o ono repe- namp amperen-e o prn-pe u 4enneamp 4 oe o eamp e poer of ampuamp-on n - -$oe u- prn-pe u eampe 4e ru-= ampon

Te rue on fn of ampe-on oramper or reouon of uamp- u uamp- or ampnr$e 4oamp no ueon of e-n- 4u ofu4n-e namp er e unampern -onamperon erefore 4en eproe-on of e u4n$e r of e nnn pr Ju on pr e r o fe n ppe n e pre-r4eamp peroamp e nnn pro e -orre$e r o eno e fn of e reouon of er-e 2

S lton- ou re-onamperon 4u ampeneamp Hen-e e preen re-oure 21

I$$gt(

S lton- ee= re$er of e + ampe-on on e one rounamp TH3 SSI3DD3+ISION ND R3SOTION OF TH3 +ORT OF 553S R3 +ONTRRC TO3EISTING S R33VNT JRIS5RD3N+3 ON TH3 ltTT3R ND TH3 F+T+IR+ltSTN+3S 22

Ogt Rgtampn

25



Te peon 4eref of er

$rinidad is still deemed the owner o the agricultural land sold to amptaMonica no need or separate noticeo coverage under the CARP law

Te -ru of e peon e n e reureen of no-e of -o$ere unamper e +R5 Te

ue reure no-e of -o$ere o 4e furneamp namp en o e namponer 23 No-e pr of e -onuon r o ampue pro-e of I nfor e namponer of e Senenon o -ure pr$e namp upon pen of u -openon namp $e eopporun o preen e$ampen-e nampoampn no -o$ereamp or oere e-ueampfro e rrn Tere no amppue no-e of -o$ere ampu en o Trnampamp Re-oramp o e pr-peamp n e DR pro-eeampn o er e -onuon reureen of ampuepro-e e namp feamp 5eoner S lton- oe$er - e oner of e r-uur namp rampeamp oampe Gun I -ureamp e namp fro Trnampamp 4 e n 198 namp ueamp rnfer

-erf-e of e S lton- - ampen of ampue pro-e of 4e-ue nofurneamp e reureamp no-e of -o$ere unamper e +R5 Reponampen ampe Gun on e oer namp -onenamp e e 4eeen Trnampamp namp Slton- nu namp $oamp 4e-ue pro4eamp rn-on unamper 5reampen De-ree No27 65D No 27 enampeamp 24 ampe Gun o - Trnampamp -orpore off-erof S lton- I er ampu o nfor S lton- of e penampn pro-eeampn e DR25 He nn S lton- no ampeneamp ampue pro-e 4e-ue ere -onru-$e no-e S lton- uff-en nforeamp of e penampn DR pro-eeampn26Re-oramp amp-oe ere nampeeamp ampeeamp of e 4eeen Trnampamp namp S lton-o$er e r-uur namp rampeamp o ampe Gun S lton- o ueamp ne rnfer

-erf-e of e o$er e namp If e re oe on e e foreone -on-uon S lton- ampeneamp ampue pro-e of e oner on re-oramp of e r-uur namp ouamp $e 4een $en no-e of -o$ereHoe$er ere u- o 4e amp of e enampn -r-un-e eamp o -on-uampe no-e of -o$ere o Trnampamp o uff-en no-e o S lton- ltoreo$er e fnamp e e 4eeen Trnampamp namp S lton- ere rue o frure epeenon of e rrn $ e e o S lton- (d 5D No 27 enampeamp for4amp e rnfer orenon of -o$ereamp r-uur namp fer O-o4er 21 1972 e-ep o e enn4enef-r Te r-uur namp rampeamp o ampe Gun -o$ereamp 4 5D No 27 He rampeamp -erf-e of namp rnfer n Ju 22 1981 Te e o S lton- n 198 $oamp

for 4en -onrr o 27 Trnampamp reneamp e oner of e r-uur nampIn 6eirs of aton$bacal v )ourt of 1ppeals 28 n$o$n e r ue of e of -o$ereampr-uur namp unamper 5D No 27 +our eamp

+er erefore 54n=n -oeamp 4re- of o4on nr-uur eor e re-oramp o pr$e reponampen no nforeamp4ou e e 4eeen 54n=n namp peoner namp neer e pr$ oe rnfer of onerp fro Jun u-no o 54n=n nr-uur eee e $e e r o 4e nforeamp 4ou erffe-n e namp e ou neeamp for o nure 4ou

26



In oer oramp rnfer of onerp o$er enneamp r-e nampor -orn nampfer O-o4er 21 1972 oeamp on n f$or of e -u ennerereon6ence the sale e4ecuted by Philbankin$ on January 88 8=9 in favorof petitioner -as in violation of the aforeuoted provision of PD E and itsimplementin$ $uidelines and must thus be declared null and void 29

6namper-orn uppeampS()nd 4uer S lton- oneamp namp -onroeamp 4 Trnampamp namp er f Re-orampo Trnampamp er u4namp namp o on on ore n 98A 3 of e ounampn-p o-= of S lton- Te re off-er of e -orporon 31 Tere re on ononreeamp n-orporor o on e n one per-en of e ounampn -p o-= ofS lton- namp o re no off-er of e -orporonTo 4e ure Trnampamp namp er f eer-e 4oue -onro of e -orpore ffr of Slton- oner of 98A of e ounampn -p o-= e re e 4enef- oner of e e of e -opn n-uampn e r-uur namp oamp 4 Trnampamp o S lton-Td Trnampamp namp er -oune feamp o nof e DR of e pror e o S lton- ampurne ampnr$e pro-eeampn ore Trnampamp feneamp norn-e of e e 4 fn oon for 4 of pr-ur ee=n pe-f- fro ampe Gun of er eeamp nampoampn- re u4e- of peon e DRI unuu namp un4ee$4e for er no o =no or e 4e re of e e oS lton- Se eref neamp e ampeeamp of e eer Se o o-=oamper nampoff-er of S lton- ltore porn e -nno fen norn-e of ampe Gun -4e-ue e er r-uur enn n-e e 1970 Se =no or e ou o=no e u4e- er of e peon e DR er on nampoampn - eoamp o S lton- n ampre- $oon of 5D No 27Te ppren -= of -nampor eeneamp 4 e f- 4o Trnampamp namp S lton- rerepreeneamp 4 e e -oune Ron Guerre e -nno re- Our -reampu ono Trnampamp feamp oon for 4 of pr-ur e DR ee=n pe-f- on e e oS lton- en e eref neamp for e $enampor pr o e rn-onI e ampu of Guerre o nfor e DR e $er fr opporun of e e oS lton- He uer re of ampu Ineamp of nforn e DR Trnampamp namper -oune eneamp n amp ooe -e namp onen fenn norn-e en eou o $e nforeamp e DR of e e o S lton- Guerre renampeamp n off-er of e -our e oe e ampu of -nampor one namp frne 32gt on fer n amp$ere ampe-on n Trnampamp S lton- uampampen feamp peon for certiorari e + ueonn e -= of no-e of -o$ere unamper e +R5 I un=e S lton- n rf- 4en -n on rou ampuuoreamp repreen$e no uff-en nforeamp or amp no -onru-$e =noeampe ofe DR pro-eeampnTrnampamp namp 4 eenon er f e4er ere nforeamp or ouamp 4e uff-en reof e DR pro-eeampn Te re o-=oamper namp -orpore off-er of S lton-Te =ne e ou o =no S lton- ouamp uffer ampe ouamp e DRramp rampeamp e r-uur namp o ampe Gun

ampre-or namp -orpore off-er e oe ampu of -re o e -orporon o nfor ofe penampn pro-eeampn e DRlt e ue f-or 4er Trnampamp namp S lton- e -onnueamp pen ofee ren 4 ampe Gun Re-oramp o ampe Gun pamp namp -onnueamp o p eeren o Trnampamp e$en fer e oamp e namp o S lton- Te re-ep 33 ampeamp lt 02002 amp-oe ampe Gun pamp (0 -$n of palay o +oampnampo ampe +ru e

27



uoreamp repreen$e of Trnampamp ee ren for e r-uur nampI n-reamp4e Trnampamp ouamp -onnue o -oe- ee ren fro ampe Gun f eamp on oamp e r-uur namp o S lton- n 198 Te -onnueamp pen of eeren namp-e Trnampamp ne$er oamp e r-uur namp o S lton- 3$ampen ee ere rue o =r -o$ere unamper e -opreen$e rrn refor

ee -r-un-e namp-e Trnampamp reneamp e re oner of e

r-uur namp oamp o S lton- Te e o S lton- no $amp 4e-ue pro4eamp unamper 5D No 27 ltore porn u 4e ampeeeamp ere po o e$ampee pp-4e pro$on of e rrn Bu f e -orpore $e-e -nno 4e ueamp eamp o proe- fruamp or ufron Tu e $e of -orpore f-on 4e per-eamp en ueamp o ampefe pu4--on$enen-e namp u4$er pu4- po-+onampern Trnampamp reneamp o 4e e rue namp e oner of e r-uur nampere no neeamp for noer no-e of -o$ere o 4e en or furneamp o S lton- e$er e e no-e o er reamp no-e o S lton- 4e-ue e -orporon -eamp ere -onampu of Trnampamp Te + -orre- ampeamp e peon of S lton- o nnue oramper of e Reon Dre-or p-n e r-uur namp of Trnampamp unamper e rrnrefor

(inal Note

T -e -n 4e $eeamp -ro-o of e peren rrn refor pro4e n Our-ounr For one ure e rampuou e 4e ennfrer $e o enampure noramper o 4e fn freeamp fro e 4onampe of e o De Gun 4eamp for o eer o -ure e r-uur namp fro Trnampamp Oer re no eu u-= Fornoer o e u4e 4u e eure =en 4 namponer o e$ampe -o$ereunamper e +R5 Of -oure ere re o e of namponer o unampu uffer eer e 4ue of oefrer or e r -oneuen-e of e In namp ue ron- e re f-eamp e e rrn refor pro4e

- e $e ou o eramp-e e$er er o en e +R5 frnroampu-eamp Feuamp e of namp onerp per n e -ounrampe namp o frerre eamp o er 4onampe I ore ron- en e pro4e =en n or--one e +R5 4en e ff namp refor peamp n-e 5reampen MueonTo Our namp pr of e pro4e e e +R5 ef -rfeamp e onoopoe I pro$ampe for on of e-uon Soe namponer ueamp ee e-uon oo rounamp e Tere no ron renamp of namp -on$eron n e -ounrampeup-ou o e$ampe -o$ere unamper e +R5 Of -oure e ouon o pro4ee +onre I e e ounampeamp e - for ore reron-opreen$e rrn refor Te ampu4ou ue of een e en o ampeep e +R5 per +orpore

reoreamp o 4 of -r-n rounamp e rrn -e ure r-uurnamp re 4en rnferreamp ueamp or oere o -orporon - re fu or epreamponn -onroeamp 4 forer namponer no -eamp o-=oamper Trou re n-peamp e -orporon 4 $rue of -orpore f-on eamp enamponer fro r-uur - of ennfrer Te ue of -orpore f-on en o e$ampe e 4 no ne T -ee orampe$-e on 4een per-e$eamp o 4e ueamp n oer feamp of no4 on o nepen of $rn amperee of u--e namp --ep4 Bu e -onnueamp

28



epoen of e -ee n rrn -e no on ampepor4e rn I e opu amp on e -pH3R3FOR3 e peon D3NI3D Te ppeeamp De-on of e +our of ppe

FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]

CONCEPT UILDERS INC petitioner vs THE NATIONAL LAORRELATIONS CO++ISSION -$ D0$n and N( +aa(Rdamplt RaFgt(amp C$aamp R( +angt(amp ampamp( Paamp)n dgt)$P(d Aa N( C(ndad R(amp Saampgt Eamp a)a G+aan R Pagtampna a$(a Aamplt(d Aamp(a PaFgt Saampgt Dngtan R( aamp0( Dnad Sana (amp( Radana a0nSgtaamp +(n E$)a($ (dnand T($ (amp( a$ampan and Rgt(nRaamp$ respondents

The +a- Firm of 1raullo and aymundo for peoner)iriaco S )ruz for pr$e reponampen

SYLLAUS

1+Oltlt3R+I +OR5ORTION DO+TRIN3 OF 5I3R+ING TH3 V3I OF+OR5ORT3 3NTITC H3N 55I+B3 L I funampen prn-pe of -orporon -orporon n en epre namp ampn- fro o-=oamper namp fro oer-orporon o - 4e -onne-eamp Bu epre namp ampn- peron of -orporon ere f-on -reeamp 4 for -on$enen-e namp o prooe u-e Soen e noon of epre uramp- peron ueamp o ampefe pu4- -on$enen-e ufron proe- fruamp or ampefenamp -re or ueamp ampe$-e o ampefe e 4or epre peron of e -orporon 4e amprerampeamp or e $e of -orpore f-onper-eamp T rue =ee en e -orporon ere n ampun- 4une -onampu orn er eo of noer -orporon2ID ID ID 5ROBTIV3 F+TORS OF ID3NTITC THT I JSTIFC TH3

55I+TION TH3R3OF L Te -onampon unamper - e urampen 4eamprerampeamp $r --orampn o e pe-ur f- namp -r-un-e of e- -e No rampnamp f rue -n 4e --ure amp ampon 4u -ern ere re oe pro4$e f-or ofampen uf e pp-on of e ampo-rne of per-n e -orpore $e o 1So-= onerp 4 one or -oon onerp of 4o -orporon 2 Iampen of ampre-ornamp off-er Te nner of =eepn -orpore 4oo= namp re-oramp ( lteoamp of-onampu-n e 4une

ID ID ID T3ST IN D3T3RltINING TH3 55I+BIITC TH3R3OF L Te e nampeernn e pp-4 of e ampo-rne of per-n e $e of -orporon f-on foo B8 )ontrol not mere maority or complete stock control but complete domination notonly of finances but of policy and business practice in respect to the transaction attacked sothat the corporate entity as to this transaction had at the time no separate mind -ill ore4istence of its o-n Such control must have been used by the defendant to commit fraudor -ron$ to perpetuate the violation of a statutory or other positive le$al duty or dishonestand unust act in contravention of plaintiffs le$al ri$hts and The aforesaid control andbreach of duty must pro4imately cause the inury or unust loss complained of The absence

30



of any one of these elements prevent piercin$ the corporate veil n applyin$ theinstrumentality or alter e$o doctrine the courts are concerned -ith reality and not form -ithho- the corporation operated and the individual defendants relationship to that operationB (ID ID ID 55I+B3 IN +S3 T BR L In -e e NR+ noeamp epeoner -eamp -eeamp 4une operon on pr 29 198 feamp nInforon See e Se-ure namp 3-ne +oon on lt 1) 1987 n

off-e ampampre )) ltn Roamp Venue ltero ltn On e oer nampH55I e ramppr -n u4eamp on e e amp r nforon ee n off-e ampampre )) ltn Roamp Venue ltero ltn Furerore eNR+ eamp Both information sheets -ere filed by the same 3ir$ilio G )asiHo as thecorporate secretary of both corporations t -ould also not be amiss to note that bothcorporations had the same president the same board of directors the same corporateofficers and substantially the same subscribers From the fore$oin$ it appears that amon$other thin$s the respondent Iherein petitioner and the third0party claimant shared the sameaddress and5or premises Ander this circumstances Isic it cannot be said that the propertylevied upon by the sheriff -ere not of respondentsB +er peoner -eeamp 4uneoperon n oramper o e$ampe e pen o pr$e reponampen of 4-=e namp o 4rer reneen o er forer poon H55I o4$ou 4une -onampu of peoner-orporon namp eeren-e =fu or-ereamp o $oamp e fnn- 4 reamp -eamp o peoner -orporon)ID NTION BOR R3TIONS +OltltISSION ltN OF 3E3+TION OFJDGlt3NT S3+TION R3 VII TH3R3OF 5RO53RC OBS3RV3D IN +S3 T BRL In $e of e fure of e erff n e -e 4r o effe- e$ upon e properu4e- of e ee-uon pr$e reponampen amp no oer re-oure 4u o pp for 4re=open oramper fer e ramppr - of H55I ampeamp for -= of er 4 e NR+T n -ononn-e Se-on Rue VII of e NR+ ltnu of 3e-uon of Juampen- pro$ampe BShould the losin$ party his a$ent or representative refuse or prohibitthe Sheriff or his representative entry to the place -here the property subect of e4ecution islocated or kept the ud$ment creditor may apply to the )ommissioner or +abor 1rbiterconcerned for a break0open orderB

D E C I S I O N

HER+OSISI+A GR J p

Te -orpore = 4e feamp namp e -orpore $e 4e per-eamp en -orporon u 4u e er eo of peron or of noer -orporon ere 4ampe of fruamp e

ere pu4- -on$enen-e ampefeeamp ere ron ou o 4e ufeamp ere4 e-orpore f-on or e noon of e en ouamp -oe o nu Te n eenn-e reramp e -orporon ere o-on of peron namp n -e of o-orporon ere e no oneTu ere er -orporon ueamp eamp o e$ampe -orporon u4ampr4 for ampe e -orporon no 4e eramp o peronepre namp ampn- fro e oer -orporon Te per-n of e -orpore $e -oe nopT pe- -$ -on oen4 re e ueon of eer e Non 4or Reon

31



+oon -oeamp r$e 4ue of amp-reon en ueamp 4re=open oramper o eerff o 4e enfor-eamp n peron proper founamp n e pree of peoner er-opn5eoner +on-ep Buamper In- ampoe- -orporon prn-p off-e )) ltnRoamp Venue ltero ltn eneamp n e -onru-on 4une 5r$ereponampen ere epoeamp 4 amp -opn 4orer -rpener namp rer

On No$e4er 1981 pr$e reponampen ere er$eamp namp$ampu ren no-e ofernon of epoen 4 peoner effe-$e on No$e4er 0 1981 I eamp ne namp$ampu no-e er -onr- of epoen amp epreamp namp e proe- n- e ere reamp amp 4een -opeeamp

5u4- reponampen founamp o 4e e f- oe$er e e of eernon of pr$e reponampen epoen e proe- n - e ere reamp ampno e 4een fneamp namp -opeeamp 5eoner amp o ene e er$-e of u4-onr-or oe or=er perforeamp e fun-on of pr$e reponampen

re$eamp pr$e reponampen feamp -opn for e amp unfr 4orpr--e namp nonpen of er e oamp p o$ere p namp reenon

p n peonerOn De-e4er 19 198( e 4or r4er renampereamp uampen 1 orampern peoner

o rene pr$e reponampen namp o p e 4-= e eu$en o one er orree unampreamp or=n amp

On No$e4er 27 198) e Non 4or Reon +oon 6NR+ampeamp e oon for re-onamperon feamp 4 peoner on e rounamp e ampampe-on amp reamp 4e-oe fn namp ee-uor 2

On O-o4er 1 198 e NR+ Reer- namp Inforon Depren ampe efnampn pr$e reponampen 4-=e ouneamp o 519980000

On O-o4er 29 198 e 4or r4er ueamp r of ee-uon ampre-n e

erff o ee-ue e De-on ampeamp De-e4er 19 198( Te r pr feamprou rnen of u fro peoner ampe4or e lteropon eror= nampSeere uor n e oun of 5818)( Samp oun urneamp o$er o e-er of e NR+

On Fe4rur 1 1989 n r of 3e-uon ueamp 4 e 4or r4erampre-n e erff o -oe- fro eren peoner e u of 5117(1(7 repreenne 4n-e of e uampen ramp namp o rene pr$e reponampen o er forerpoon

On Ju 1 1989 e erff ueamp repor n e reamp o er$e e r of ee-uon on peoner rou e e-ur uramp on ampu 4u e er$-e

refueamp on e rounamp peoner no oner o--upeamp e preeOn Sepe4er 2 198 upon oon of pr$e reponampen e 4or r4er

ueamp e-onamp r of ee-uon

Te amp r amp no 4een enfor-eamp 4 e pe- erff 4e-ue eamp n prore repor ampeamp No$e4er 2 1989

1 e epoee nampe peoner pree )) ltn Roamp Venueltero ltn -eamp e ere epoee of Hampro 5pe 5ppne In- 6H55Inamp no 4 reponampen

32



2e$ ampe upon peron propere e founamp n e pree

Se-ur uramp poereamp un pre$eneamp fro reo$n epropere e amp e$eamp upon (

Te amp pe- erff re-oenampeamp 4re=open oramper 4e ueamp oen4e o ener peoner pree o e -ouamp pro-eeamp e pu4- u-one of e foreamp peron propere on No$e4er 7 1989

On No$e4er 1989 -ern Denn +ue=en feamp ramppr - e4or r4er en e propere ou o 4e e$eamp upon 4 e erff ereoneamp 4 Hampro 65 In- 6H55I of - e e V-e5reampen

On No$e4er 2 1989 pr$e reponampen feamp ltoon for Iun-e of Bre=Open Oramper en H55I namp peoner -orporon ere oneamp 4 ee n-orpororo-=oamper Te o eeamp peoner eporr upenampeamp 4une operon n oramper o e$ampe e o4on o e namp pr$ereponampen ere n o po n nampen 4onamp o ner for n ampe -peoner namp H55I uffer 4e-ue of e un-e of e 4re=open oramper

In uppor of er - n H55I pr$e reponampen preeneamp ampu -erfeamp-ope of e Gener Inforon See ampeamp lt 1) 1987 u4eamp 4 peoner oe Se-ure 3-ne +oon 6S3+ namp e Gener Inforon See ampeamplt 1) 1987 u4eamp 4 H55I o e Se-ure namp 3-ne +oon

Te Gener Inforon See u4eamp 4 e peoner re$eeamp e foon

1reakdo-n of Subscribed )apital

ltame of Stockholder1mount Subscribed

H55I5999)0000 nono 290000000

Denn S +ue=en00003 + 10000000Teoampuo R Dno10000Vro O +no10000

2oard of Directors

nono +rnDenn S +ue=enlte4er 3 + lte4er Teoampuo R Dnolte4er Vro O +nolte4er

)orporate Gfficers

nono 5reampenDenn S +ue=enn o e 5reampen3 O Treurer Vro O +no+orpore Se-rer

(Principal Gffice

)) ltn RoampVenue ltero ltn )

33



On e oer namp e Gener Inforon See of H55I re$eeamp e foon



nono 5(00000003 + )770000

Trampn())00000Denn S +ue=en(010000Teoampuo R Dno10000Vro O +no100 00

2oard of Directors

nono +rn3 + lte4er Denn S +ue=enlte4er Vro O +nolte4er Teoampuo R Dnolte4er

)orporate Gfficers nono 5reampenDenn S +ue=enn o e 5reampen3 + Treurer Vro O +no+orpore Se-rer

(Principal Gffice

)) ltn Roamp Venue ltero ltn

On Fe4rur 1 1990 H55I feamp n Oppoon o pr$e reponampen oon for un-e of 4re=open oramper -onenampn H55I -orporon - epre namp ampn- fropeoner H55I o eeamp e o -orporon re eneamp n o ampfferen =namp of

4unee ie H55I nuf-urn fr e peoner en eneamp n-onru-onOn ltr- 2 1990 e 4or r4er ueamp n Oramper - ampeneamp pr$e reponampenoon for 4re=open oramper5r$e reponampen en ppeeamp o e NR+ On pr 2 1992 e NR+ e ampe eoramper of e 4or r4er ueamp 4re=open oramper namp ampre-eamp pr$e reponampen o fe 4onamp Terefer ampre-eamp e erff o pro-eeamp e u-on e of e properereamp e$eamp upon I ampeamp e ramppr - for -= of er5eoner o$eamp for re-onamperon 4u e oon ampeneamp 4 e NR+ n Reouonampeamp De-e4er 1992Hen-e e reor o e preen peon

5eoner ee e NR+ -oeamp r$e 4ue of amp-reon en orampereamp e ee-uon of ampe-on ampepe ramppr - on e e$eamp proper5eoner furer -onenamp e ampo-rne of per-n e -orpore $e ouamp no $e4een ppeamp n -e n e 4en-e of n on -reeamp H55I n oramper oe$ampe 4 o pr$e reponampen I o -onenamp H55I eneamp n enuf-ure namp e of ee -on-ree namp ron ppe 4une - ampn- nampepre fro peoner -onru-on 4une Hen-e of no -oneuen-e peoner namp H55I reamp e e pree e e 5reampen namp e e e ofoff-er namp u4-r4er 7

34



e fnamp peoner -onenon o 4e unerorou

I funampen prn-pe of -orporon -orporon n enepre namp ampn- fro o-=oamper namp fro oer -orporon o - 4e-onne-eamp 8 Bu epre namp ampn- peron of -orporon ere f-on-reeamp 4 for -on$enen-e namp o prooe u-e9 So en e noon of epre

uramp- peron ueamp o ampefe pu4- -on$enen-e uf ron proe- fruamp or

ampefenamp -re or ueamp ampe$-e o ampefe e 4or 1 epre peronof e -orporon 4e amprerampeamp or e $e of -orpore f-on per-eamp 11 T rue =ee en e -orporon ere n ampun- 4une -onampu or n er eoof noer -orporon 12

Te -onampon unamper - e urampen 4e amprerampeamp $r --orampno e pe-ur f- namp -r-un-e of e- -e No ramp namp f rue -n 4e--ure amp ampon 4u -ern ere re oe pro4$e f-or of ampen

uf e pp-on of e ampo-rne of per-n e -orpore $e o

1So-= onerp 4 one or -oon onerp of 4o -orporon2Iampen of ampre-or namp off-er

Te nner of =eepn -orpore 4oo= namp re-oramp(lteoamp of -onampu-n e 4une 1

Te S3+ en banc epneamp e nruen rue - e -our $e ppeampn amprerampn e epre uramp- peron of -orporon foo

2here one corporation is so or$anized and controlled and its affairs areconducted so that it is in fact a mere instrumentality or adunct of the otherthe fiction of the corporate entity of the instrumentality may be disre$ardedThe control necessary to invoke the rule is not maority or even completestock control but such domination of finances policies and practices that thecontrolled corporation has so to speak no separate mind -ill or e4istence ofits o-n and is but a conduit for its principal t must be kept in mind that the

control must be sho-n to have been e4ercised at the time the actscomplained of took place (oreover the control and breach of duty must

pro4imately cause the inury or unust loss for -hich the complaint is made

Te e n ampeernn e pp-4 of e ampo-rne of per-n e $e of-orpore f-on foo

8)ontrol not mere maority or complete stock control but completedomination not only of finances but of policy and business practice in respectto the transaction attacked so that the corporate entity as to this transactionhad at the time no separate mind -ill or e4istence of its o-n

Such control must have been used by the defendant to commit fraud

or -ron$ to perpetuate the violation of a statutory or other positive le$al dutyor dishonest and unust act in contravention of plaintiffs le$al ri$hts and

The aforesaid control and breach of duty must pro4imately cause theinury or unust loss complained of7

The absence of any one of these elements prevents piercin$ thecorporate veil n applyin$ the instrumentality or alter e$o doctrine thecourts are concerned -ith reality and not form -ith ho- the corporationoperated and the individual defendants relationship to that operation 1(

35



Tu e ueon of eer -orporon ere er eo ere ee orpper -orporon or u4erfue pure one of f- 1)

In -e e NR+ noeamp e peoner -eamp -eeamp 4une operon on pr 29 198 feamp n Inforon See e Se-ure namp3-ne +oon on lt 1) 1987 n off-e ampampre )) ltnRoamp Venue ltero ltn On e oer namp H55I e ramppr -n

u4eamp on e e amp r nforon ee n off-e ampampre )) ltn Roamp Venue ltero ltn

Furerore e NR+ eamp

Bo nforon ee ere feamp 4 e same Vro O +o e-orpore e-rer of 4o -orporon I ouamp o no 4e o noe 4o -orporon amp e same preampen e same 4oramp of ampre-ore same -orpore off-er namp u4n e same u4-r4erFro e foreon pper on oer n e reponampen6eren peoner namp e ramppr -n reamp e e ampamprenampor pree namper -r-un-e 6- -nno 4e amp e

proper e$eamp upon 4 e erff ere no of reponampen 1+er peoner -eeamp 4une operon n oramper o e$ampe e pen o

pr$e reponampen of 4-=e namp o 4r er reneen o er forer poonH55I o4$ou 4une -onampu of peoner -orporon namp eeren-e =fu or-ereamp o $oamp e fnn- 4 reamp -eamp o peoner-orporon

Te f- n -e re noou o )laparols v )ourt of ndustrial elations 17 ere e amp e o--on o rue

Reponampen -our fnampn nampeeamp e +pro See namp N 5n- -eeamp operon of June 0 19)7 S++33D3D 4 e +pro

See +orporon effe-$e e ne amp Ju 1 19)7 up o De-e4er 7192 en e er fn -eeamp o opere ere no amppueamp 4peoner I $er -er e er -orporon -onnuon nampu--eor of e fr en Bo preampe-eor namp u--eor ere oneampnamp -onroeamp 4 peoner 3ampurampo +pro namp ere no 4re= n eu--eon namp -onnu of e e 4une T $oampne4-ee $er pen -onampern 90A of e u4-r4eamp re of o-=of e +pro See +orporon 6e e-onamp -orporon oneamp 4reponampen +pro ef namp e e of e ampo$eamp +proSee namp N 5n ere urneamp o$er o e eern +pro See+orporonI $er o4$ou e e-onamp -orporon ee= e proe-$e eamp of -orpore f-on oe $e n e preen -e -ouamp namp ouamp 4e per-eamp ampe4ere namp -ou ampeneamp o e$ampe fnn- o4ono epoee

In $e of e fure of e erff n e -e 4r o effe- e$ upon eproper u4e- of e ee-uon pr$e reponampen amp no oer re-oure 4u o ppfor 4re=open oramper fer e ramppr - of H55I ampeamp for -= of er4 e NR+ T n -ononn-e Se-on Rue VII of e NR+ ltnu of

36



3e-uon of Juampen - pro$ampe

Should the losin$ party his a$ent or representative refuse or prohibitthe Sheriff or his representative entry to the place -here the property subectof e4ecution is located or kept the ud$ment creditor may apply to the)ommission or +abor 1rbiter concerned for a break0open order

Furerore our peru of e re-oramp o e n reureen of ampue

no-e namp ern ere -opeamp 5eoner namp e ramppr -n ere $ene opporun o u4 e$ampen-e n uppor of er -

Hen-e e NR+ ampamp no -o n r$e 4ue of amp-reon en ffreamp e4re=open oramper ueamp 4 e 4or r4er

Fn e ampo no fnamp n reon o ampur4 e rue f-u fnampn of u uampen-e upporeamp 4 u4n e$ampen-e re 4nampn on +our namp reeneamp o re repe- n e 4en-e of on of r$e 4ue of amp-reon 18

H3R3FOR3 e peon DISltISS3D namp e eamp reouon of eNR+ ampeamp pr 2 1992 namp De-e4er 1992 re FFIRlt3D

SO ORD3R3DPadilla ellosillo 3itu$ namp Capunan JJ -on-ur

37



THIRD DIVISION

[GR No 1(29 pr 17 2002]

PHILIPPINE NATIONAL AN NATIONAL SUAR DEELOP+ENTCORPORATION petitioners vs ANDRADA ELECTRIC ENINEERINCO+PANY respondent

Salvador +uy for peonerenecio gtspiritu for pr$e reponampen

SYNOPSIS

Reponampen feamp n -on n peoner for e unpamp 4n-e on ee-r-er$-e pre$ou renampereamp o 5pn Sur lt 65SltI Reponampen eeamp peoner 4e-e 4e o e en e forer -ureamp e e of oo= o$ernamp opereamp 5SltI

Te +our ampreeamp reponampen Te foon pre-uampe e per-n of e-orpore $e n e -e 4r Oer n e f- peoner -ureamp e e of5SltI ere no on er -onro o$er rrn e ampreramp of-orpore perone ere no e$ampen-e er uramp- peron ueamp o-o fruamp or o ampo ron or e epre -orpore en fr-- ueamp ere er eo 4une -onampu or nruen of noer en or peronreponampen no ampefruampeamp or nureamp en peoner -ureamp e e of

5SltI Neer ere erer nor -onoampon repe- o 5SltI namp 5NB

SYLLAUS

1R3lt3DI +IVI 5RO+3DR3 553 53TITION FOR R3VI3 M3STIONSOF F+T ltC NOT R3 RIS3D TH3R3IN 3E+35TION IS H3N TH3R3 ISltIS55R3+ITION OF 3VID3N+3 L ener rue ueon of f- no 4ereamp n peon for re$e unamper Rue () of e Rue of +our To rue oe$er erere oe e-epon enuereamp n Fuentes v )ourt of 1ppeals fer -refu -run ofe re-oramp namp e peampn u4eamp 4 e pre e fnamp e oer -our

ppre-eamp e e$ampen-e preeneamp O$eroo=eamp 4 e + ere -ern ree$n f- ouamp uf -on-uon ampfferen fro re-eamp n e eamp De-on2+Oltlt3R+I 5RIVT3 +OR5ORTIONS H3R3 +OR5ORTION 5R+HS3DTH3 SS3TS OF NOTH3R +OR5ORTION TH3 FORlt3R I NOT B3 IB3 TOTH3 D3BTS OF TH3 TT3R 3E+35TIONS L rue -orporon pur-e ee of noer no 4e 4e for e ampe4 of e en -orporon pro$ampeamp e forer-eamp n ooamp f namp pamp ampeue -onamperon for u- e e-ep en n of efoon -r-un-e preen 61 ere e pur-er epre or peamp ree oue e ampe4 62 ere e rn-on oun o -onoampon or erer of e

38



-orporon 6 ere e pur-n -orporon ere -onnuon of e en-orporon namp 6( ere e rn-on fruampuen enereamp no n oramper o e-pe4 for oe ampe4 S+HT-ID ID +OR5ORTION 3+IDT3D L -orporon n rf- 4en -reeamp 4operon of I poee e r of u--eon namp u- poer r4ue namppropere epre uoreamp 4 or n-ampen o een-e I peron

epre namp ampn- fro e peron -opon e fro n oer e en o- 4e reeamp T 4-(ID ID DO+TRIN3 OF 5I3R+ING TH3 V3I OF +OR5ORT3 FI+TION H3N5RO53R L 3u eeeamp e prn-pe e -orpore = 4e reo$eamp ore -orpore $e per-eamp en e -orporon u n er eo of peron or of noer-orporon For reon of pu4- po- namp n e nere of u-e e -orpore $e

uf4 4e peamp on en 4e-oe eamp for fruamp e or neu -oeampn ramp peron Hen-e n pp-on of e ampo-rne of per-n e -orpore $eouamp 4e ampone -uon -our ouamp 4e nampfu of e eu ere o 4e ppeampI u 4e -ern e -orpore f-on ueamp o u- n een nu-efruamp or -re -oeamp n noer n ampreramp of r Te ronamponu 4e -er namp -on$n-n e4eamp -nno 4e preueamp Oere n nu-e ne$er unnenampeamp reu fro n erroneou pp-on T +our per-eampe -orpore $e o ramp off uampen -reamp o $oamp n-uon of -orpore e prof e ee of e ampe-eampen o e-pe 4 rn fro ampe4 or o perpeue fruampnampor -onfue ee ue eer o prooe or o eamp unfr o4e-$e or o -o$er upn oere 4n $oon of e pro4on n foruoppn On n ee nampr nn-e e $e 4e per-eamp namp amprerampeamp)ID ID ID 33lt3NTS NOT 5R3S3NT IN +S3 T BR L Te ueon of eer -orporon ere er eo one of f- 5er-n e $e of -orpore f-on 4eoeamp on f e foon eeen -on-ur 61 -onro L no ere o-= -onro 4u-opee amponon L no on of fnn-e 4u of po- namp 4une pr--e n repe- oe rn-on -=eamp u $e 4een u- e -orpore en o rn-onamp e e no epre namp or een-e of on 62 u- -onro u $e4een ueamp 4 e ampefenampn o -o fruamp or ron o perpeue e $oon of uor or oer po$e e ampu or ampone namp n unu - n -onr$enon ofpnff e r namp 6 e amp -onro namp 4re- of ampu u $e proe-ueamp e nur or unu o -opneamp of e 4ee$e e 4en-e of e foreoneeen n e preen -e pre-uampe e per-n of e -orpore $eFirst oer n ef- peoner -ureamp e e of 5SltI ere no on er -onroo$er rrn e ampreramp of -orpore perone Second ere no e$ampen-e er uramp- peron ueamp o -o fruamp or o ampo ron or e epre-orpore en fr-- ueamp ere er eo 4une -onampu or nruen ofnoer en or peron Third reponampen no ampefruampeamp or nureamp en peoner-ureamp e e of 5SltI Ben e pr =eamp for e per-n of e -orpore$e reponampen amp e 4urampen of preenn -er namp -on$n-n e$ampen-e o uf een ampe of e epre -orpore peron rue Hoe$er uer feamp o amp-re 4urampen feamp o e4 4 -opeen e$ampen-e peoner epre -orpore$e amp 4een ueamp o -on-e fruamp e or neu Te + erreamp n ffrn e r-our fn of e -orpore = Te + ampamp no pon o n f- e$ampen-n 4amp f one pr of 5NB namp rnferee Te -orpore f-on no ueamp o ampefe pu4--on$enen-e uf ron proe- fruamp or ampefenamp -re None of e foreon e-epon on o e n e preen -e On e -onrr e fn of e -orpore $e ouamp

39



reu n nfe nu-e T e -nno oID ID +ONSOIDTION OR lt3RG3R OF +OR5ORTIONS R3MISIT3S NOT5R3S3NT IN +S3 T BR L -onoampon e unon of o or ore en ene ofor ne en -eamp e -onoampeamp -orporon erer on e oer namp unonere4 one or ore en -orporon re 4or4eamp 4 noer -orporon ur$$enamp -onnue e -o4neamp 4une Te erer oe$er ampoe no 4e-oe effe-$e upon

e ere reeen of e -onuen -orporon Sn-e erer or -onoampon n$o$efunampen -ne n e -orporon e n e r of o-=oamper namp -reamporere u 4e n epre pro$on of uorn e For $amp erer or-onoampon e ppro$ 4 e Se-ure namp 3-ne +oon 6S3+ of e r-eof erer or -onoampon reureamp Tee r-e u =ee 4e ampu ppro$eamp 4 or of e repe-$e o-=oamper of e -onuen -orporon In e -e 4r eoamp ere no erer or -onoampon repe- o 5SltI namp 5NB Tepro-eampure pre-r4eamp unamper Te IE of e +orporon +oampe no fooeamp 3I-S

D E C I S I O N

PANANIAN J p

B- e rue -orporon e peron ampn- namp epre fro eperon namp ene onn Te -orpore $e 4e feamp on f 4een ueamp oeamp fruamp ampefenamp -re uf ron ampefe pu4- -on$enen-e nue 4amp f orperpeue nu-e Tu e ere f- e 5ppne Non Bn= 65NB -ureamponerp or neen of oe e of e 5pn Sur lt 65SltI -amp erer 4een fore-oeamp namp pur-eamp e reun pu4- u-on 4 e De$eopenBn= of e 5ppne 6DB5 no =e 5NB 4e for e 5SltI -onr-u ampe4

o reponampenStatement of the )ase

Before u 5eon for Re$e n e pr 17 2000 De-on 1 of e +our of ppe 6+ n +GR +V No )710 Te ampe-re poron of e -eneamp De-onreamp fooH3R3FOR3 e uampen ppeeamp fro ere4 FFIRlt3D 2

The Facts

Te f-u ne-eampen of e -e re ureamp 4 e +our of ppe fooIn -opn e pnff [eren reponampen] eeamp prnerpampu orneamp en namp opern unamper e of e 5ppne

off-e namp prn-p p-e of 4une No 79(812 De ltone []$enueMueon + e e ampefenampn [eren peoner] 5ppne Non Bn=6eren referreamp o 5NB eo$ernen -orporon ampu orneampen namp opern unamper e of e 5ppne off-e nampprn-p p-e of 4une 3-o Sree S +ru ltn ere eoer ampefenampn e Non Sur De$eopen +orporon 6NSD3+On 4ref o eo$ernen -orporon namp e ur r of e 5NB off-e namp prn-p p-e of 4une e 2namp Foor SpuBuampn +u4o Mueon + namp e ampefenampn 5pn Sur lt

40



65SltI n or -orporon orneamp en namp opern unampere 197) of e 5ppne namp amp 4une off-e 4efore 197) De +ren Foramp4n- 5pn e pnff eneamp n e4une of ener -onru-on for e repr nampor -onru-on of ampfferen=namp of -nere namp 4uampn on uu 2 197) e ampefenampn5NB -ureamp e e of e ampefenampn 5SltI ere erer

fore-oeamp 4 e De$eopen Bn= of e 5ppne 6DB5 unamper OI No11 e ampefenampn 5NB orneamp e ampefenampn NSD3+O nSepe4er 197) o =e onerp namp poeon of e e nampue o none namp -onoampe nere n oer 5NB -onroeampur pror o O-o4er 29 1971 e ampefenampn 5SltI eneampe er$-e of pnff for ee-r- renampn namp repr o of - erepr pamp 4 e ampefenampn 5SltI e$n e$er unpamp --oun e pnff fn on O-o4er 29 1971 e pnff namp e ampefenampn5SltI enereamp no -onr- for e pnff o perfor e foon o

6+onru-on of one 61 poer oue 4uampn64+onru-on of ree 6 renfor-eamp -on-ree founampon for ree 6 un

)0 K ampee enne enern e[]6-+onru-on of ree 6 renfor-eamp -on-ree founampon for e )000 K

namp 12)0 K ur4o eneror e6amp+opee o$erun namp re-onamponn e u for ree 6 )0 K

ampee enne enern e[]6eInon of ur4ne namp ampee enern e n-uampn rnforer

-4oramp ee-r- rn namp ppe pro$ampeamp oe eamp un re-opee uppeamp er --eore

6fReo-n of 2(00 V rnon ne ampeoon of en -on-reefounampon namp amprne -n e-$on namp er fn fore o oun of 5)()0000 e$ampen-eamp 4 -onr- [] ero-op of - ereo -eamp nne namp ampe n ner prof -opn

ampe fro e or= -onr- enoneamp4o$e e ampefenampn 5SltIreureamp e pnff o perfor er or= namp pro$ampe ee-r- eupennamp pre pr u- 6Supp of ee-r- ampe$-e643r e-n- or=6-3r f4r-on or=6ampSupp of er namp -onu4e e6e3e-r- op repr6fSupp of pr namp reeamp or= for ur4ne eneror6Supp of ee-r- eupen for -ner6Supp of ampee enne pr namp oer reeamp or= n-uampn f4r-on

of pr ou of e o o4on of 5777280 e ampefenampn 5SltI amppamp on 52)000000 e$n n unpamp 4n-e of June 27 197ounn o 5)27280 on n e +erf-on of e -ef--ounn of e 5NB -ne -op of - ppenampeamp nne + ofe -opn ou of amp unpamp 4n-e of 5)27280 e ampefenampn

41



5SltI ampe pr pen o e pnff of 51(00000 n 4ro=enoun -o$ern e peroamp fro Jnur ) 197( up o lt 2 197(e$n n unpamp 4n-e of 5)1280 e ampefenampn 5SltI nampe ampefenampn 5NB namp no e ampefenampn NSD3+O feamp namp refueamp op e pnff er u $amp namp ampenamp4e o4on e 5reampenof e NSD3+O o e V-e5reampen of e 5NB namp off-

oamp off-e e 10 Foor of e 5NB 3-o ltn namp pnff4eou off- o p e ounampn o4on of e ampefenampn5SltI nu- e ampefenampn 5NB namp NSD3+O no oneamp namppoeeamp e e of e ampefenampn 5SltI namp ee ampefenampn 4enefeamp fro e or= namp e ee-r- e e enneern namprepr perforeamp 4 e pnff 4e-ue of e fure namp refu of eampefenampn o p er u $amp namp ampenamp4e o4on pnffuffereamp -u ampe n e o oun of 5)1280 namp n orampero re-o$er ee u e pnff -opeeamp o ene e profeoner$-e of -oune o o e pnff reeamp o p u eu$en o2)A of e oun of e o4on ampue 4 of orne fee

--orampn e pnff preamp uampen 4e renampereamp n eampefenampn 5NB NSD3+O namp 5SltI on namp e$er o

61Senen-n e ampefenampn o p e pnff e uof 5)1280 nnu nere of 1(A fro e e eo4on f ampue namp ampenamp4e

62+onampenn e ampefenampn o p orne feeounn o 2)A of e oun -

6Orampern e ampefenampn o p e -o of e uTe ampefenampn 5NB namp NSD3+O feamp on oon o amp e-opn -ef on e rounamp e -opn feamp o e uff-eneon o e4 -ue of -on n 4o ampefenampn nu- ere -= or n of pr$ of -onr- 4eeen e pnff namp e oampefenampn e 5NB namp NSD3+O amp ampefenampn -n r-e 111 ofe Ne +$ +oampe namp e -e run n Son $ rner Brne gt+o 88 5 12) namp ltn 5or Ser$-e e $ +our of ppe e 20S+R 121(Te oon o amp 4 e -our a uo ampeneamp n Oramper ofNo$e4er 27 1980 n e e oramper -our ampre-eamp e ampefenampn ofe er ner o e -opn n 1) ampIn er ner e ampefenampn NSD3+O reereamp e rounamp of oon o amp o

T e -opn ampoe no e uff-en -ue of -on ne ampefenampn NSD3+O 4e-ue 6 NSD3+O no pr$ oe $rou ee-r- -onru-on o4 4en ueamp upon 4 e pnffunamper e preen -opn 64 e =n o$er 4 NSD3+O of ee of ampefenampn 5SltI oe for e purpoe ofre-onamponn e ur -enr of ampefenampn 5SltI purun or poer of e 5reampen unamper e +onuon 6- nonn e OI No 189 6 e n OI No 11 uoreamp or-onampeamp e 5NB or u4ampr -orporon e NSD3+O oue e -orpore o4on of 5SltI 4en n$o$eamp ne preen -e namp 6amp enoneamp 4 e amp eer of

42



nru-on nofr e 5SltI 4e [ere] -on-erneamp [] fore 5NB or u4ampr -orporon e NSD3+O o =e uampof namp u4 [] re-oenampon on e pro4e -on-ernn ee

B of -ouner- e NSD3+O $erreamp 4 reon of e fn4 e pnff of e preen u - [4eeamp] unfounampeamp or 4ee

e ampefenampn NSD3+O -onrneamp o e namp n-ur onepene n e oun of 5)000000 - pnff ouamp 4e enen-eamp op --orampn NSD3+O preamp e -opn 4e ampeamp namp on -ouner- e pnff 4e -onampeneamp o p 5)000000 n -on-epof orne fee e eepr ampeIn ner e ampefenampn 5NB =ee reereamp e rounamp of oono amp ne 61 e -opn e no -ue of -on n eampefenampn 5NB 62 5NB no pr o e -onr- eeamp n pr ofe -opn namp e eeamp er$-e renampereamp 4 e pnff o eampefenampn 5SltI upon - pnff u ere-eamp renampereamp on4efore 5NB oo= poeon of e e of e ampefenampn 5SltI unamperOI No 189 6 e 5NB =eo$er of e e of e ampefenampn5SltI unamper OI 189 oe for e purpoe of re-onamponn eur -enr o 5SltI reue operon n e for e197(7) n eon namp non n e amp OI No 189 e n OI No 11 uoreamp or ampre-eamp 5NB o ue e -orporeo4on of 5SltI e one for - e preen -on 4rou6( 5NB neen namp operon unamper OI No 11 ampamp no refer on e of 5SltI - e 5NB amp o -ure namp erefer [ne]4u on o oe - ere fore-oeamp 4 e DB5 namp ere n urnreampeeeamp 4 e 5NB fro e DB5 6) -onfor4 o OI No 11 on

uu 1) 197) e 5NB namp e De$eopen Bn= of e 5ppne6DB5 enereamp no Reampepon reeen ere4 DB5 oamp rnferreampnamp -on$eeamp n f$or of e 5NB 4 of reampepon 6DB5 rnamp nere n namp o$er e fore-oeamp re nampor peron propere of5SltI on n nne + - ampe n ner pr of e ner6 n -onfor4 OI No 11 5NB purun o Deeamp of

nen ampeamp O-o4er 21 197) -on$eeamp rnferreamp namp neamp for$u4e -onamperon n f$or of NSD3+O ampn- namp nampepenampen-orporon 65NB r namp nere n namp unamper e 4o$eReampepon reeen T on n nne D - o ampe nner pr of e ner [7] -oneuen-e of e amp Deeamp of

nen 5NB on O-o4er 21 197) -eeamp o ne namp opere e4o$eenoneamp e of 5SltI - fun-on no -urnferreamp o NSD3+O In oer oramp o ereamp 5NB e -opn o 5NB amp 4e-oe oo namp -ampe- 4e-ue of e ee-uon of e ampDeeamp of nen [8] oreo$er OI No 11 ampamp no uore or ampre-5NB o ue e -orpore o4on of 5SltI n-uampn e eeampo4on upon - preen u 4rou namp [9] o rneamp o 5NB n repe- e uor o =e uamp of nampu4 re-oenampon on e pro4e -on-ernn e - of 5SltI-reampor unamper u4pr ) OI No 11In -ouner- e 5NB $erreamp unne-er -onrneamp o

43



e namp o n-ur epene n -e en-e eneamp o -orne fee n e oun of e 5)000000 --orampn 5NB preamp e -opn 4e ampeamp namp on -ouner- e pnff4e enen-eamp o p ampefenampn 5NB e u of 5)000000 orne feeampe fro eepr ampe n u- oun e -our ee unamp eu4e n e pree

Suon 4 pu4-on ampe $ e 5ppne D 3pre nepper eampor off-e 71 Bonf-o Dr$e 5or re ltnn e ampefenampn 5SltI - erefer ampe-reamp n ampefu on n e uu 7 1981 Oramper ueamp 4 e Tr +ourfer ampue pro-eeampn e Tr +our renampereamp uampen e ampe-re poronof - reamp

H3R3FOR3 uampen ere4 renampereamp n f$or of pnff nampn e ampefenampn +orporon 5ppne Non Bn= 65NBNTION SGR D3V3O5lt3NT +OR5ORTION 6NSD3+Onamp 5lt5NG SGR ltIS 65SltI orampern e er o p

on namp e$er e forer e foon1Te u of 5)1280 pu nere ereon e re of

1(A per nnu -eamp fro Sepe4er 2) 1980un fu pamp

2Te u of 510272(7 orne fee namp+oSO ORD3R3D

ltn 5ppne Sepe4er ( 1986SGD 3RN3STO S T3NG+O

Juampe 3

ulin$ of the )ourt of 1ppeals

ffrn e r -our e + eamp offen$e o e 4- ene of u-e nampeu for -orporon o =e o$er namp opere e 4une of noer -orporon eamp$on or repuampn n repon4 o4on or 4 rn erefro 4Hen-e 5eon 5

ssues

In er lteornampu peoner re e foon error for e +our -onamperonITe +our of ppe r$e erreamp n n oampn e eren peoner4e for e unpamp -orpore ampe4 of 5SltI -orporon oe-orpore een-e no 4een e enueamp or erneamp p

4e-ue of peoner[] =eo$er of e neen namp operon of5SltI purun o e nampe of OI No 189 enampeamp 4 OINo 11IITe +our of ppe r$e erreamp n n no ppn [o] e -e 4en- e run enun-eamp n gtd-ard J ltell )o v Pacific Farms 1) S+R(1) 6

Su--n- pu e foreamp error 4o ampon o e prn-p ue of eer 5NB 4efor e unpamp ampe4 of 5SltI o reponampen

44



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(ain ssue7

+iability for )orporate Debts

ener rue ueon of f- no 4e reamp n peon for re$e unamper Rue () of

e Rue of +our 7 To rue oe$er ere re oe e-epon enuereamp nFuentes v )ourt of 1ppeals 8 fer -refu -run of e re-oramp namp e peampnu4eamp 4 e pre e fnamp e oer -our ppre-eamp e e$ampen-epreeneamp 9 O$eroo=eamp 4 e + ere -ern ree$n f- ouamp uf -on-uonampfferen fro re-eamp n e eamp De-on 15eoner po e ouamp no 4e eamp 4e for e -orpore ampe4 of 5SltI4e-ue er =eo$er of e er fore-oeamp e ampamp no =e e nee On eoer namp reponampen er peoner namp 5SltI ouamp 4e reeamp one ennamp u- on namp e$er eamp 4e for 5SltI unpamp o4on

rue -orporon pur-e e e of noer no 4e 4e for e ampe4 ofe en -orporon pro$ampeamp e forer -eamp n ooamp f namp pamp ampeue

-onamperon for u- e e-ep en n of e foon -r-un-e preen 61ere e pur-er epre or peamp ree o ue e ampe4 62 ere ern-on oun o -onoampon or erer of e -orporon 6 ere epur-n -orporon ere -onnuon of e en -orporon namp 6( ere ern-on fruampuen enereamp no n oramper o e-pe 4 for oe ampe4 11

Piercin$ the )orporate3eil ltot 2arranted

-orporon n rf- 4en -reeamp 4 operon of I poee e r ofu--eon namp u- poer r4ue namp propere epre uoreamp 4 orn-ampen o een-e 12 I peron epre namp ampn- fro e peron

-opon e fro n oer e en o - 4e reeamp 13 T 4-3u eeeamp e prn-pe e -orpore = 4e reo$eamp or e -orpore$e per-eamp en e -orporon u n er eo of peron or of noer -orporon 14 For reon of pu4- po- namp n e nere of u-e e -orpore $e uf4 4epeamp 15 on en 4e-oe eamp for fruamp e or neu -oeamp nramp peron 16Hen-e n pp-on of e ampo-rne of per-n e -orpore $e ouamp 4e ampone -uon 17 -our ouamp 4e nampfu of e eu ere o 4e ppeamp 18I u 4e-ern e -orpore f-on ueamp o u- n een nu-e fruamp or -re -oeamp n noer n ampreramp of r 19Te ronampon u 4e -ernamp -on$n-n e4eamp -nno 4e preueamp 2 Oere n nu-e ne$er unnenampeamp reu fro n erroneou pp-on 21T +our per-eamp e -orpore $e o ramp off uampen -reamp 22 o $oamp n-uonof -orpore e pr of e ee of e ampe-eampen 23 o e-pe 4 rn fro ampe4 24 or o perpeue fruamp nampor -onfue ee ue 25 eer o prooe or oeamp unfr o4e-$e 26 or o -o$er up n oere 4n $oon of e pro4onn foruoppn 27 On n ee namp r nn-e e $e 4e per-eamp nampamprerampeamp 28Te ueon of eer -orporon ere er eo one of f- 29 5er-n e $e of-orpore f-on 4e oeamp on f e foon eeen -on-ur 61 -onro L no ere

45



o-= -onro 4u -opee amponon L no on of fnn-e 4u of po- namp 4unepr--e n repe- o e rn-on -=eamp u $e 4een u- e -orpore en o rn-on amp e e no epre namp or een-e of on 62 u--onro u $e 4een ueamp 4 e ampefenampn o -o fruamp or ron o perpeue e$oon of uor or oer po$e e ampu or ampone namp n unu - n-onr$enon of pnff e r namp 6 e amp -onro namp 4re- of ampu u $e

proe -ueamp e nur or unu o -opneamp of 3e 4ee$e e 4en-e of e foreon eeen n e preen -e pre-uampe eper-n of e -orpore $e First oer n e f- peoner -ureamp e e of5SltI ere no on er -onro o$er rrn e ampreramp of -orporeperone 31 Second ere no e$ampen-e er uramp- peron ueamp o-o fruamp or o ampo ron or e epre -orpore en fr-- ueamp ere er eo 4une -onampu or nruen of noer en or peron 32 Thirdreponampen no ampefruampeamp or nureamp en peoner -ureamp e e of 5SltI33Ben e pr =eamp for e per-n of e -orpore $e reponampen amp e 4urampen ofpreenn -er namp -on$n-n e$ampen-e o uf e en ampe of e epre -orporeperon rue 34 Hoe$er uer feamp o amp-re 4urampen 35 feamp o e44 -opeen e$ampen-e peoner epre -orpore $e amp 4een ueamp o -on-efruamp e or neu 36e e ree reponampen - e e of e Non Sur De$eopen+orporon 6NSD3+O -n 4e e r-eamp o 5SltI 37 e re no -on$n-eamp e rnfer of e er e o peoner fruampuen enereamp no n oramper oe-pe 4 for ampe4 o reponampen 38

-refu re$e of e re-oramp re$e DB5 fore-oeamp e ore ee-ueamp 45SltI namp -ureamp e e e e 4ampamper e pu4- u-on -onampu-eamp 39 Te 4n= ufeamp n fore-on e ore 4e-ue e 5SltI --oun ampn-urreamp rrere of ore n 20 per-en of e o ounampn o4on 4 Tu DB5amp no on r 4u o ampu unamper e o fore-oe e u4e- propere 415urun o OI No 189 42 enampeamp 4 OI No 11 43 5NB -ureamp 5SltIe DB5 amp fore-oeamp namp pur-eamp n e nor -oure 5eoner 4n= =ee =eamp o ne eporr e operon of u- e eer 4 ef or rou u4ampr -orporon 445NB e e-onamp oree reampeeeamp fro DB5 e fore-oeamp 5SltI epurun o Se-on of - No 1) 45 Tee e ere er -on$eeamp o 5NB for -onamperon e er of - ere e4oampeamp n e Reampepon reeen 46 5NB u--eornnere eppeamp no e oe of DB5 5SltI -reampor 47 B of Deeamp of nen 48 5NB en rnferreamp o NSD3+O r unamper eReampepon reeenIn Development ank of the Philippines v )ourt of 1ppeals 49 e amp e o--on oreo$e r ue e rueamp 5NB DB5 namp er rnferee ere no 4e forltrnampuue ltnn unpamp o4on o Renon Inampur Se +orporon6Renon fer e o 4n= amp fore-oeamp e e of ltrnampuue ltnn e=ee eamp Renon feamp o amp-re 4urampen of pro$n 4amp f on e pr ofltrnampuue ltnn o uf e per-n of e -orpore $eIn e nn -e e + erreamp n ffrn e r -our fn of e -orpore = 5 Te + ampamp no pon o n f- e$ampen-n 4amp f on e pr of 5NB namp rnferee 51 Te -orpore f-on no ueamp o ampefe pu4- -on$enen-e uf ron proe- fruampor ampefenamp -re 52 None of e foreon e-epon on o e n e preen -e

46



53 On e -onrr e fn of e -orpore $e ouamp reu n nfe nu-e T e-nno o

lto (er$er or )onsolidation

Reponampen furer - peoner ouamp 4e eamp 4e for e unpamp o4on of5SltI 4 $rue of OI No 189 namp 11 - epre uoreamp 5SltI namp

5NB o ere or -onoampe On e oer namp peoner -onenamp er =eo$er of eoperon of 5SltI ampamp no n$o$e n -orpore erer or -onoampon 4e-ue eer amp ne$er o epre ampen -orporon

-onoampon e unon of o or ore en ene o for ne en -eamp e-onoampeamp -orporon erer on e oer namp unon ere4 one or oreen -orporon re 4or4eamp 4 noer -orporon ur$$e namp -onnue e-o4neamp 4une 54Te erer oe$er ampoe no 4e-oe effe-$e upon e ere reeen of e -onuen-orporon 55 Sn-e erer or -onoampon n$o$e funampen -ne n e-orporon e n e r of o-=oamper namp -reampor ere u 4e n eprepro$on of uorn e 56 For $amp erer or -onoampon e ppro$ 4 e

Se-ure namp 3-ne +oon 6S3+ of e r-e of erer or -onoampon reureamp 57 Tee r-e u =ee 4e ampu ppro$eamp 4 or of e repe-$eo-=oamper of e -onuen -orporon 58 In e -e 4r e oamp ere no erer or -onoampon repe- o 5SltInamp 5NB Te pro-eampure pre-r4eamp unamper Te IE of e +orporon +oampe 59 nofooeampIn f- 5SltI -orpore een-e -orre- founamp 4 e + amp no 4een eenueamp or erneamp 6 Furer pror o 5NB -uon of e fore-oeamp e5SltI amp pre$ou ampe pr pen o reponampen for e forer o4on ne oun of 5777280 of June 27 197 5SltI amp pamp 52)0000 o reponampen

namp fro Jnur ) 197( o lt 2 197( noer 51(000Neer ampamp peoner epre or peamp ree o ue e ampe4 of 5SltI oreponampen 61 OI No 11 ep- pro$ampe 5NB uamp namp u4re-oenampon on e - of 5SltI -reampor 62 +er e -orporeeprene 4eeen 5SltI namp 5NB ren ampepe reponampen nen-e o e-onrr 63H3R3FOR3 e 5eon ere4 GRNT3D namp e eamp De-on S3T SID3 Nopronoun-een o -o DHT+ISO ORD3R3D



Te ounu of ON3 HNDR3D SIETC ltIION 53SOS65H51000000000 ern -opounampn nere of 0A per nnu- nere 4e p4e o +53RTINO R3TC +OR5ORTION 4o$e $en ampampre ON TH3 FIRST DC OF 3V3RC ltONTH ITHOTTH3 N33D OF D3ltNDIn -e e f o p e prn-p oun of noe ur or n e

e$en of 4n=rup- or no$enre-e$erp e$ of ee-uon rnenor -en or n -e of -on$-on for -rn offene -rrn epen of -$ neramp-on or n n of e -e -o$ereamp 4 r-e 1198 of e+$ +oampe of e 5ppne en e enre prn-p of noe namp oernere namp pene ampue ereon e opon of +53RTINOR3TC +OR5ORTION eampe 4e-oe ampue namp p4e namp e

on namp e$er ree o p ampampon pen e re of THR3353R+3NT 6A per on on e o ounu ampue un fu pampFurerore e on namp e$er ree o p n ampampon ueu$en o 20A of e o oun ampue 4u n no -e e n 5H510000000 namp for orne fee n ampampon o epene namp -o of ue ere4 uore namp epoer +53RTINO R3TC +OR5ORTION opon n e ou no-e o pp o e pen of noe nampor n oer pr-ur o4on or o4on of or n one of u o+53RTINO R3TC +OR5ORTION ee- rrepe-$e of eampe of ur eer or no amp o4on re en ampue n namp one -e-= e-ure namp n of $ue - re no or - erefer 4e n namp on ampepo or oere o e -reamp of or 4eonno 4o or n one of u namp +53RTINO R3TC +OR5ORTION ere4 uoreamp o e pu4- or pr$e e u- -e-= e-ure orn of $ue for e purpoe of ppn e pro-eeamp ereof o u-pen of noe HSID-e ere4 epre -onen o n eenon nampor rene ereof noe or n pr nampor pr pen on --oun - 4e reueeamp 4namp rneamp o u or n one of u for e pen of noe on erenn unpamp 4n-e ern n nere of THR33 per-en 6A on un fu pamp Su- rene or eenon n no -e 4eunamperooamp no$on of noe or n pro$on ereof namp e ere4 -onnue o 4e 4e for e pen of noee u4 o e uramp-on of e +our of e + of ltn or of e p-eof ee-uon of noe e opon of +53RTINO R3TC+OR5ORTION ou amp$en n oer -our of uramp-on for ne -on - re ou of noe In -e of uamp- ee-uon of o4on or n pr of e ere4 $e our r unamper epro$on of Rue 9 e-on 12 of e Rue of +oure o re u nampe4eamp o +53RTINO R3TC +OR5ORTION reeo ee-ue repe-$e re ee ore namp peampe or -eore -o$ern e-ure o er$e -oer for on namp oee-ue =ee n rre$o-4e pro o o repreen$e of e -reamporo 4e 4e o onor - of neen o o pre$en n preure -of on e furer unamper=e o ee-ue n oer =namp of ampo-uen- +53RTINO R3TC +OR5ORTION oe 4ee$e ne-ern oramper o effe- n e-ur o$er n -oer

2





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S3+OND DIVISION

[GR No 1(0) uu 2008]


D E C I S I O N

UISU+IN J p





11












12








13






14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




15












16















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[GR No 1(8( June 18 2008]


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FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












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THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






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D E C I S I O N

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40













41










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[GR No 1(0) uu 2008]


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13






14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




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[GR No 1087( lt 29 199]



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THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






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D E C I S I O N

PANANIAN J p




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[GR No 1(0) uu 2008]


D E C I S I O N

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11












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13






14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




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16















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[GR No 1(8( June 18 2008]


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[GR No 1087( lt 29 199]



SYLLAUS




30





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31



















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THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






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PANANIAN J p




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41










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[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

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[GR No 1087( lt 29 199]



SYLLAUS




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31



















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[GR No 1(29 pr 17 2002]



SYNOPSIS




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38






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FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

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[GR No 1087( lt 29 199]



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[GR No 1(29 pr 17 2002]



SYNOPSIS




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PANANIAN J p




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FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

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[GR No 1087( lt 29 199]



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THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




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38






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[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

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THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




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38






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D E C I S I O N

PANANIAN J p




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40













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[GR No 1(0) uu 2008]


D E C I S I O N

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14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




15












16















17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46
















10



S3+OND DIVISION

[GR No 1(0) uu 2008]


D E C I S I O N

UISU+IN J p





11












12








13






14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




15












16















17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46












S3+OND DIVISION

[GR No 1(0) uu 2008]


D E C I S I O N

UISU+IN J p





11












12








13






14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




15












16















17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46





















12








13






14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




15












16















17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46

















13






14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




15












16















17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46















14



FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




15












16















17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46












FIRST DIVISION

[GR No 1)(97) Jnur 29 2007]


D E C I S I O N

ARCIA J p




15












16















17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46





















16















17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46
























17










18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46



















18








19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46

















19







20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46
















20











21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46




















21





22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46














22



THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46












THIRD DIVISION

[GR No 1(8( June 18 2008]


D E C I S I O N

REYES RT J p





T( a)$


23







CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46
















CA D$$n





24











I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46




















I$$gt(


Ogt Rgtampn

25



Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46












Te peon 4eref of er








26






27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46















27






(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46















(inal Note




28




FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

Te 5eon erorou

(ain ssue7









45






46













FFIRlt3DSO ORD3R3D

29



FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



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45






46












FIRST DIVISION

[GR No 1087( lt 29 199]



SYLLAUS




30





D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

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45






46














D E C I S I O N

HER+OSISI+A GR J p



31



















32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

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45






46




























32












H55I5999)0000 nono 290000000


2oard of Directors


)orporate Gfficers


(Principal Gffice


33






nono 5(00000003 + )770000


2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



This )ourts ulin$

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45






46





















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2oard of Directors


)orporate Gfficers


(Principal Gffice


33






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2oard of Directors



(Principal Gffice





34





















35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



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45






46















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34





















35






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36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



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45






46






























35






Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










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ssues




44



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45






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Furerore e NR+ eamp








36











37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



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45






46




















37



THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



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45






46












THIRD DIVISION

[GR No 1(29 pr 17 2002]



SYNOPSIS




SYLLAUS



38






39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










Juampe 3



ssues




44



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45






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39





D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










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ssues




44



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45






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D E C I S I O N

PANANIAN J p




The Facts



40













41










42









43










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ssues




44



This )ourts ulin$

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45






46






















41










42









43










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44



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45






46



















42









43










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44



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45






46


















43










Juampe 3



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44



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45






46



















Juampe 3



ssues




44



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45






46












This )ourts ulin$

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45






46















46



















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Second Batch Corpo Cases