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Maruhom vs. People
G.R. No.206513, October 20, 2015 Facts: On September 24, 2005, in the City of Las Piñas, accused, with lewd designs, did then and there willfully, unlawfully and feloniously commit a lascivious conduct upon the person of one AAA, who was then a sixteen year old minor, by then and there embracing her, touching her breast and private part against her will and without her consent and the act complained of is prejudicial to the physical and psychological development of the complainant. After trial, the RTC promulgated its Decision which convicted petitioner of the crime charged. Feeling aggrieved, petitioner elevated the case to the Court of Appeals (CA) arguing, among other things, that even assuming he committed the acts imputed, still there is no evidence showing that the same were done without the victim’s consent or through force, duress, intimidation or violence upon her. The CA rendered a Decision adopting the recommendation of the OSG. Petitioner received a copy of CA Decision on July 6, 2012. Instead of further appealing the case, he filed on July 23, 2012 before the CA a manifestation with motion to allow him to apply for probation upon remand of the case to the RTC. Issue: Whether or not the petitioner can avail the benefits of Probation Law Held: No. Section 4 of the Probation Law prohibits granting an application for probation if an appeal from the sentence of conviction has been perfected by the accused. In this case, petitioner appealed the trial court’s judgment of conviction before the CA alleging that it was error on the part of the trial court to have found him guilty of violating Section 5(b), Article III of Republic Act (R.A.) No. 7610. Accused already perfected his appeal and it is late in the day to avail the benefits of probation.
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Facts: In the Year 1996, Malto and private respondent AAA started to frequently exchange messages and calls. Their conversation always started innocently but he had a way of veering the subject to sex. Soon, they had a "mutual understanding" and became sweethearts. On November 19, 1997, AAA agreed to have lunch with petitioner outside the premises of the college. She was surprised when he brought her to Queensland Lodge on Harrison St. in Pasay City. Once inside the motel room, he kissed her at the back and neck, touched her breasts and placed his hand inside her blouse. She resisted his advances but he was too strong for her. He stopped only when she got angry at him. On November 26, 1997, Malto asked AAA to come with him so that they could talk in private. He again brought her to Queensland Lodge. As soon as they were inside the room, he took off his shirt, lay down in bed and told her, "halika na, dito na tayo mag-usap." She refused but he dragged her towards the bed, kissed her lips, neck and breasts and unsnapped her brassiere. She struggled to stop him but he overpowered her. He went on top of her, lowered her pants and touched her private part. He tried to penetrate her but she pushed him away forcefully and she sat up in bed. He hugged her tightly saying, "Sige na, AAA, pumayag ka na, I won’t hurt you." She refused and said, "Mike, ayoko." Pressured and afraid of his threat to end their relationship, she hesitantly replied "Fine." On hearing this, he quickly undressed while commenting "ibibigay mo rin pala, pinahirapan mo pa ako" and laughed. They had sexual intercourse. In July 1999, AAA ended her relationship with petitioner. She learned that he was either intimately involved with or was sexually harassing his students in Assumption College and in other colleges where he taught. On learning what her daughter underwent in the hands of petitioner, BBB filed an administrative complaint in Assumption College against him. She also lodged a complaint in the Office of the City Prosecutor of Pasay City which led to the filing of Criminal Case No. 00-0691. Issue: Whether or not the Indeterminate Sentence Law can be applied Held: Yes. The penalty prescribed for violation of the provisions of Section 5, Article III of R.A. 7610 is reclusion temporal in its medium period to reclusion perpetua. In the absence of any mitigating or aggravating circumstance, the proper imposable penalty is reclusion temporal in its maximum period, the medium of the penalty prescribed by the law. Notwithstanding that RA 7610 is a special law, petitioner may enjoy the benefits of the Indeterminate Sentence Law. Since the penalty provided in RA 7610 is taken from the range of penalties in the Revised Penal Code, it is covered by the first clause of Section 1 of the Indeterminate Sentence Law. Thus, he is entitled to a maximum term which should be within the range of the proper imposable penalty of reclusion temporal in its maximum period and a minimum term to be taken within the range of the penalty next lower to that prescribed by the law: prision mayor in its medium period to reclusion temporal in its minimum period (ranging from 8 years and 1 day to 14 years and 8 months). FACTS: Petitioner, Gemma Jacinto was an employee of Megafoam International, received a check amounting to Pho 10, 000 as payment of Baby Aquino to her purchase to Megafoam. However, instead of delivering it to Megafoam, she deposited it to her bank account. The check was later discovered to be unfunded. Both RTC and CA ruled that the petitioner was guilty of qualified theft. Petitioner filed a petition for review of certiorari to SC. ISSUE: Whether or not petitioner is correctly convicted for the crime of Qualified Theft. RULING: NO. Petitioner is guilty of committing an impossible crime of theft only. The requisites of an impossible crime are: (1) that the act performed would be an offense against persons or property; (2) that the act was done with evil intent; and (3) that its accomplishment was inherently impossible, or the means employed was either inadequate or ineffectual. Petitioner’s evil intent cannot be denied, as the mere act of unlawfully taking the check meant for Mega Foam showed her intent to gain or be unjustly enriched. Were it not for the fact that the check bounced, she would have received the face value thereof, which was not rightfully hers. Therefore, it was only due to the extraneous circumstance of the check being unfunded, a fact unknown to petitioner at the time, that prevented the crime from being produced. The thing unlawfully taken by petitioner turned out to be absolutely worthless, because the check was eventually dishonored, and Mega Foam had received the cash to replace the value of said dishonored check. Imbo vs. People
G.R. No.197712, April 20, 2015 Facts: While their entire household was asleep and had retired for the night, she was awakened by petitioner, her own father, licking her vagina and mashing her breasts. At the time, AAA was sleeping at the second level of their residence with her younger sister, BBB. AAA immediately and repeatedly shouted for her mother, CCC, who was sleeping outside the room, but to no avail. AAA continued to shout for her mother prompting petitioner to leave and run out of the room. AAA cried herself to sleep, and on the very next day told her mother of what her father, petitioner, had done to her. Adamant on his innocence, petitioner filed a Notice of Appeal to the appellate court maintaining that he did not commit Acts of Lasciviousness against his own daughter, AAA; the charge was only concocted by his wife who, for some reason, wanted to separate from him. The Court of Appeals affirmed the trial court's conviction of petitioner for Acts of Lasciviousness under Article 336 of the RPC in relation to Section 5 of R.A. No. 7610. Issue: Whether or not the penalty imposed by the lower court failed to properly apply R.A. No. 4103, the Indeterminate Sentence Law Held: Yes. Section 5(b), Article III of R.A. No. 7610 provides the imposable penalty for Acts of Lasciviousness when the victim is under twelve (12) years of age, albeit the offense is prosecuted under Article 336 of the RPC, is reclusion temporal in its medium period. The range of the imposable penalty on petitioner of reclusion temporal in its medium period is fourteen (14) years, four (4) months and one (1) day to seventeen (17) years and four (4) months. The Indeterminate Sentence Law is applicable to prison sentence both for an offense punished by the RPC and an offense punished "by any other law." The correct application of the Indeterminate Sentence Law has long been clarified in People v. Simon which ruled that the underscored portion of Section 1 of the Indeterminate Sentence Law, i.e. the "offense is punished by any other law," indubitably refers to an offense under a special law where the penalty imposed was not taken from and is without reference to the Revised Penal Code (RPC). Hence, applying the Indeterminate Sentence Law, petitioner is sentenced to an indeterminate penalty of twelve (12) years and one (1) day of reclusion temporal as minimum and seventeen (17) years and four (4) months of reclusion temporal as maximum. Facts: On 28 August 1991, Jose G. Garcia filed with an Affidavit of Complaint charging his wife, private respondent Adela Teodora P. Santos alias "Delia Santos," with Bigamy, Violation of C.A. No. 142, as amended by R.A. No. 6085, and Falsification of Public Documents. However, in his letter of 10 October 1991 to Assistant City Prosecutor George F. Cabanilla, the petitioner informed the latter that he would limit his action to bigamy. On 2 March 1992, the private respondent filed a Motion to Quash alleging prescription of the offense as ground therefore. She contended that by the petitioner's admissions in his testimony given on 23 January 1991 in Civil Case No. 90-52730, entitled "Jose G. Garcia v. Delia S. Garcia," and in his complaint filed with the Civil Service Commission on 16 October 1991, the petitioner discovered the commission of the offense as early as 1974. Pursuant then to Article 91 of the Revised Penal Code (RPC), the period of prescription of the offense started to run therefrom. Thus, since bigamy was punishable by prision mayor, an afflictive penalty which prescribed in fifteen years pursuant to Article 92 of the RPC, then the offense charged prescribed in 1989, or fifteen years after its discovery by the petitioner. The Court of Appeals affirmed the decision of the Trial Court. Hence, this petition Issue: Whether or not the private respondent's many trips abroad suspended the running of the prescriptive period Held: No. The court held that that these trips abroad did not constitute the "absence" contemplated in Article 91 of the Revised Penal Code. These trips were brief, and in every case the private respondent returned to the Philippines. Besides, these were made long after the petitioner discovered the offense and even if the aggregate number of days of these trips are considered, still the information was filed well beyond the prescriptive period Facts:
SPO2 Baxinela was already in the pub drinking with Regimen and Legarda for more than a couple of hours prior to the shooting incident. After witnessing an altercation between Lajo and another customer, Baxinela decided to confront Lajo on why he had a gun with him. Baxinela approached Lajo from behind and held the latter on the left shoulder with one hand while holding on to his .45 caliber service firearm with the other. As Lajo was turning around, to see who was confronting him, Baxinela shot him. The prosecution, on the other hand, contends that Baxinela was already in the pub drinking with Regimen and Legarda for more than a couple of hours prior to the shooting incident. After witnessing an altercation between Lajo and another customer, Baxinela decided to confront Lajo on why he had a gun with him. Baxinela approached Lajo from behind and held the latter on the left shoulder with one hand while holding on to his .45 caliber service firearm with the other. As Lajo was turning around, to see who was confronting him, Baxinela shot him. Baxinela then got Lajo’s wallet and fled the scene with Regimen. The RTC and CA accepted the prosecution’s version. Hence, this petition. Issue: Whether or not the Court of Appeals erred in denying the justifying circumstances of self- defense of in the alternative the lawful performance of official duty under Article 11 paragraphs 1 and 5, respectively, of the Revised Penal Code. Held: No. In order to avail justifying circumstance of lawful performance of an official duty under Article 11, Paragraph 5 of the Revised Penal Code, it must be shown that: 1) the accused acted in the performance of a duty or in the lawful exercise of a right or office; and 2) the injury caused or the offense committed is the necessary consequence of the due performance of duty or the lawful exercise of a right or office. While the first condition is present, the second is clearly lacking. Baxinela’s duty was to investigate the reason why Lajo had a gun tucked behind his waist in a public place. This was what Baxinela was doing when he confronted Lajo at the entrance, but perhaps through anxiety, edginess or the desire to take no chances, Baxinela exceeded his duty by firing upon Lajo who was not at all resisting. The shooting of Lajo cannot be considered due performance of a duty if at that time Lajo posed no serious threat or harm to Baxinela or to the civilians in the pub. Facts:
The respondent spouses Gueco obtained a loan from petitioner now UnionBank to purchase a car. Hence, the Spouses executed promissory notes which were payable in monthly installments and chattel mortgage over the car to serve as security for the notes. The Spouses defaulted in payment. The Bank, therefore, filed a civil action for "Sum of Money with Prayer for a Writ of Replevin" before the MTC. The car was detained inside the Bank’s compound. Dr. Gueco delivered a manager's check in amount of P150,000.00 but the car was not released because of his refusal to sign the Joint Motion to Dismiss for they had not yet filed their Answer. The Bank insisted that the joint motion to dismiss is standard operating procedure in their bank to effect a compromise and to preclude future filing of claims, counterclaims or suits for damages. After several demand letters and meetings with bank representatives, the spouses initiated a civil action for damages. The RTC held that there was a meeting of the minds between the parties as to the reduction of the amount of indebtedness and the release of the car but said agreement did not include the signing of the joint motion to dismiss as a condition sine qua non for the effectivity of the compromise. Issue: 1. Whether or not there was an agreement with respect to the execution of the joint motion to dismiss as a condition for the compromise agreement 2. Whether or not the spouses are entitled for damages arising from fraud. Held: 1. No. Being an affirmative allegation, petitioner has the burden of evidence to prove his claim that the oral compromise entered into by the parties included the stipulation that the parties would jointly file a motion to dismiss. This petitioner failed to do. Notably, even the Metropolitan Trial Court, while ruling in favor of the petitioner and thereby dismissing the complaint, did not make a factual finding that the compromise agreement included the condition of the signing of a joint motion to dismiss. 2. No. The Court failed to see how the act of the petitioner bank in requiring the respondent to sign the joint motion to dismiss could constitute as fraud. Fraud has been defined as the deliberate intention to cause damage or prejudice. Petitioner may have been remiss in informing Dr. Gueco that the signing of a joint motion to dismiss is a standard operating procedure of petitioner bank. However, this cannot in any way have prejudiced Dr. Gueco. The whole point of the parties entering into the compromise agreement was in order that Dr. Gueco would pay his outstanding account and in return petitioner would return the car and drop the case for money and replevin before the Metropolitan Trial Court. The joint motion to dismiss was but a natural consequence of the compromise agreement and simply stated that Dr. Gueco had fully settled his obligation, hence, the dismissal of the case. Hence, petitioner's act of requiring Dr. Gueco to sign the joint motion to dismiss cannot be said to be a deliberate attempt on the part of petitioner to renege on the compromise agreement of the parties. Facts:
Petitioner Saudi Arabian Airlines (SAUDIA) hired private respondent Milagros Morada as a flight attendant in 1988, based in Jeddah. In 1990, while on a lay-over in Jakarta, Indonesia, she went to party with two (2) male attendants, and on the following morning in their hotel, one of the male attendants attempted to rape her. She was rescued by hotel attendants who heard her cry for help. The Indonesian police arrested the two men. Morada returned to Jeddah but was asked by the company to go back to Jakarta and help arrange the release of the 2 male attendants. MORADA did not cooperate when she got to Jakarta. What followed was a series of interrogations from the Saudi Courts which she did not understand as this was in their language. In 1993, she was surprised, upon being ordered by SAUDIA to go to the Saudi court, that she was being convicted of (1) adultery; (2) going to a disco, dancing and listening to the music in violation of Islamic laws; and (3) socializing with the male crew, in contravention of Islamic tradition, sentencing her to five months imprisonment and to 286 lashes. Only then did she realize that the Saudi court had tried her, together with the 2, for what happened in Jakarta. SAUDIA denied her the assistance she requested, but because she was wrongfully convicted, Prince of Makkah dismissed the case against her and allowed her to leave Saudi Arabia. Shortly before her return to Manila, she was terminated from the service by SAUDIA, without her being informed of the cause. On November 23, 1993, Morada filed a Complaint for damages against SAUDIA, and Khaled Al-Balawi (“Al-Balawi”), its country manager. SAUDIA alleges that the existence of a foreign element qualifies the instant case for the application of the law of the Kingdom of Saudi Arabia, by virtue of the lex loci delicti commissi rule. Morada alleges that since her Amended Complaint is based on Articles 19 and 21 of the Civil Code, then the instant case is properly a matter of domestic law. Issue: Whether or not the Philippine courts have jurisdiction to try the case. Ruling: Yes, On the presence of a “Foreign Element” in the case: A factual situation that cuts across territorial lines and is affected by the diverse laws of two or more states is said to contain a “foreign element”. In the instant case, the foreign element consisted in the fact that private respondent Morada is a resident Philippine national, and that petitioner SAUDIA is a resident foreign corporation. Also, by virtue of the employment of Morada with the petitioner Saudia as a flight stewardess, events did transpire during her many occasions of travel across national borders, particularly from Manila, Philippines to Jeddah, Saudi Arabia, and vice versa, that caused a “conflicts” situation to arise. The presence of a foreign element is inevitable since social and economic affairs of individuals and associations are rarely confined to the geographic limits of their birth or conception. The forms in which this foreign element may appear are many. The foreign element may simply consist in the fact that one of the parties to a contract is an alien or has a foreign domicile, or that a contract between nationals of one State involves properties situated in another State. In other cases, the foreign element may assume a complex form. COURT disagrees with Morada that this is purely a domestic case. However, the court finds that the RTC of Quezon City possesses jurisdiction over the subject matter of the suit. Its authority to try and hear the case is provided for under Section 1 of Republic Act No. 7691 Weighing the relative claims of the parties, the court a quo found it best to hear the case in the Philippines. Had it refused to take cognizance of the case, it would be forcing plaintiff (private respondent now) to seek remedial action elsewhere, i.e. in the Kingdom of Saudi Arabia where she no longer maintains substantial connections. That would have caused a fundamental unfairness to her. Moreover, by hearing the case in the Philippines no unnecessary difficulties and inconvenience have been shown by either of the parties. The choice of forum of the plaintiff (now private respondent) should be upheld. The trial court also acquired jurisdiction over the parties. Morada through her act of filing, and SAUDIA by praying for the dismissal of the Amended Complaint on grounds other than lack of jurisdiction. In applying “State of the most significant relationship” rule, to determine the State which has the most significant relationship, the following contacts are to be taken into account and evaluated according to their relative importance with respect to the particular issue: (a) the place where the injury occurred; (b) the place where the conduct causing the injury occurred; (c) the domicile, residence, nationality, place of incorporation and place of business of the parties, and (d) the place where the relationship, if any, between the parties is centered. As already discussed, there is basis for the claim that over-all injury occurred and lodged in the Philippines. There is likewise no question that private respondent is a resident Filipina national, working with petitioner, a resident foreign corporation engaged here in the business of international air carriage. Thus, the “relationship” between the parties was centered here, although it should be stressed that this suit is not based on mere labor law violations. From the record, the claim that the Philippines has the most significant contact with the matter in this dispute, raised by private respondent as plaintiff below against defendant (herein petitioner), in our view, has been properly established. These “test factors” or “points of contact” or “connecting factors” could be any of the following: (1) The nationality of a person, his domicile, his residence, his place of sojourn, or his origin; (2) the seat of a legal or juridical person, such as a corporation; (3) the situs of a thing, that is, the place where a thing is, or is deemed to be situated. In particular, the lex situs is decisive when real rights are involved; (4) the place where an act has been done, the locus actus, such as the place where a contract has been made, a marriage celebrated, a will signed or a tort committed. The lex loci actus is particularly important in contracts and torts; (5) the place where an act is intended to come into effect, e.g., the place of performance of contractual duties, or the place where a power of attorney is to be exercised; (6) the intention of the contracting parties as to the law that should govern their agreement, the lex loci intentionis; (7) the place where judicial or administrative proceedings are instituted or done. The lex fori — the law of the forum — is particularly important because, as we have seen earlier, matters of “procedure” not going to the substance of the claim involved are governed by it; and because the lex fori applies whenever the content of the otherwise applicable foreign law is excluded from application in a given case for the reason that it falls under one of the exceptions to the applications of foreign law; and (8) the flag of a ship, which in many cases is decisive of practically all legal relationships of the ship and of its master or owner as such. It also covers contractual relationships particularly contracts of affreightment. Facts: At about 1:30 a.m. on November 15, 1975, private respondent Leonardo Dionisio was on his way home from cocktails and dinner meeting with his boss. He was proceeding down General Lacuna Street when he saw a Ford dump truck parked askew, partly blocking the way of oncoming traffic, with no lights or early warning reflector devices. The truck was driven earlier by Armando Carbonel, a regular driver of the petitioner company. Dionisio tried to swerve his car to the left, but it was too late. He suffered some physical injuries and nervous breakdown. Dionision filed an action for damages against Carbonel and Phoenix Insurance. Petitioners countered the claim by imputing the accident to respondent’s own negligence in driving at high speed without curfew pass and headlights, and while intoxicated. The trial court and the Court of Appeals ruled in favor of private respondent. Issue: Whether the collision was brought about by the way the truck was parked, or by respondent’s own negligence Held: We find that private respondent Dionisio was unable to prove possession of a valid curfew pass during the night of the accident and that the preponderance of evidence shows that he did not have such a pass during that night. It is the petitioners' contention that Dionisio purposely shut off his headlights even before he reached the intersection so as not to be detected by the police in the police precinct which he (being a resident in the area) knew was not far away from the intersection. We believe that the petitioners' theory is a more credible explanation than that offered by private respondent Dionisio, i.e., that he had his headlights on but that, at the crucial moment, these had in some mysterious if convenient way malfunctioned and gone off, although he succeeded in switching his lights on again at "bright" split seconds before contact with the dump truck. We do not believe that this evidence is sufficient to show that Dionisio was so heavily under the influence of liquor as to constitute his driving a motor vehicle per se an act of reckless imprudence. The conclusion we draw from the factual circumstances outlined above is that private respondent Dionisio was negligent the night of the accident. He was hurrying home that night and driving faster than he should have been. Worse, he extinguished his headlights at or near the intersection of General Lacuna and General Santos Streets and thus did not see the dump truck that was parked askew and sticking out onto the road lane. Nonetheless, we agree with the Court of First Instance and the Intermediate Appellate Court that the legal and proximate cause of the accident and of Dionisio's injuries was the wrongful or negligent manner in which the dump truck was parked in other words, the negligence of petitioner Carbonel. The collision of Dionisio's car with the dump truck was a natural and foreseeable consequence of the truck driver's negligence. The distinctions between "cause" and "condition" which the 'petitioners would have us adopt have already been "almost entirely discredited. If the defendant has created only a passive static condition which made the damage possible, the defendant is said not to be liable. But so far as the fact of causation is concerned, in the sense of necessary antecedents which have played an important part in producing the result it is quite impossible to distinguish between active forces and passive situations, particularly since, as is invariably the case, the latter are the result of other active forces which have gone before. Even the lapse of a considerable time during which the "condition" remains static will not necessarily affect liability. "Cause" and "condition" still find occasional mention in the decisions; but the distinction is now almost entirely discredited. So far as it has any validity at all, it must refer to the type of case where the forces set in operation by the defendant have come to rest in a position of apparent safety, and some new force intervenes. But even in such cases, it is not the distinction between "cause" and "condition" which is important but the nature of the risk and the character of the intervening cause. We believe, secondly, that the truck driver's negligence far from being a "passive and static condition" was rather an indispensable and efficient cause. The improper parking of the dump truck created an unreasonable risk of injury for anyone driving down General Lacuna Street and for having so created this risk, the truck driver must be held responsible. In our view, Dionisio's negligence, although later in point of time than the truck driver's negligence and therefore closer to the accident, was not an efficient intervening or independent cause. The defendant cannot be relieved from liability by the fact that the risk or a substantial and important part of the risk, to which the defendant has subjected the plaintiff has indeed come to pass. Foreseeable intervening forces are within the scope original risk, and hence of the defendant's negligence. The courts are quite generally agreed that intervening causes which fall fairly in this category will not supersede the defendant's responsibility. Thus, a defendant who blocks the sidewalk and forces the plaintiff to walk in a street where the plaintiff will be exposed to the risks of heavy traffic becomes liable when the plaintiff is run down by a car, even though the car is negligently driven; and one who parks an automobile on the highway without lights at night is not relieved of responsibility when another negligently drives into it. We hold that private respondent Dionisio's negligence was "only contributory," that the "immediate and proximate cause" of the injury remained the truck driver's "lack of due care" and that consequently respondent Dionisio may recover damages though such damages are subject to mitigation by the courts. Petitioners also ask us to apply what they refer to as the "last clear chance" doctrine. The common law notion of last clear chance permitted courts to grant recovery to a plaintiff who had also been negligent provided that the defendant had the last clear chance to avoid the casualty and failed to do so. Accordingly, it is difficult to see what role, if any, the common law last clear chance doctrine has to play in a jurisdiction where the common law concept of contributory negligence as an absolute bar to recovery by the plaintiff, has itself been rejected, as it has been in Article 2179 of the Civil Code of the Philippines. Under Article 2179, the task of a court, in technical terms, is to determine whose negligence - the plaintiff's or the defendant's - was the legal or proximate cause of the injury. The relative location in the continuum of time of the plaintiff's and the defendant's negligent acts or omissions, is only one of the relevant factors that may be taken into account. Of more fundamental importance are the nature of the negligent act or omission of each party and the character and gravity of the risks created by such act or omission for the rest of the community. Our law on quasi-delicts seeks to reduce the risks and burdens of living in society and to allocate them among the members of society. To accept the petitioners' pro-position must tend to weaken the very bonds of society. We believe that the demands of substantial justice are satisfied by allocating most of the damages on a 20-80 ratio. Thus, 20% of the damages awarded by the respondent appellate court, except the award of P10,000.00 as exemplary damages and P4,500.00 as attorney's fees and costs, shall be borne by private respondent Dionisio; only the balance of 80% needs to be paid by petitioners Carbonel and Phoenix who shall be solidarity liable therefor to the former. The award of exemplary damages and attorney's fees and costs shall be borne exclusively by the petitioners. Phoenix is of course entitled to reimbursement from Carbonel. We see no sufficient reason for disturbing the reduced award of damages made by the respondent appellate court. Facts:
On January 20, 1915, Jose Cangco was riding the train of Manila Railroad Co (MRC). He was an employee of the latter and he was given a pass so that he could ride the train for free. When he was nearing his destination at about 7pm, he arose from his seat even though the train was not at full stop. When he was about to alight from the train (which was still slightly moving) he accidentally stepped on a sack of watermelons which he failed to notice due to the fact that it was dim. This caused him to lose his balance at the door and he fell and his arm was crushed by the train and he suffered other serious injuries. He was dragged a few meters more as the train slowed down. It was established that the employees of MRC were negligent in piling the sacks of watermelons. MRC raised as a defense the fact that Jose Cangco was also negligent as he failed to exercise diligence in alighting from the train as he did not wait for it to stop. ISSUE: Whether or not Manila Railroad Co is liable for damages. HELD: Yes. Alighting from a moving train while it is slowing down is a common practice and a lot of people are doing so every day without suffering injury. Jose Cangco has the vigor and agility of young manhood, and it was by no means so risky for him to get off while the train was still moving as the same act would have been in an aged or feeble person. He was also ignorant of the fact that sacks of watermelons were there as there were no appropriate warnings, and the place was dimly lit. The Court also elucidated on the distinction between the liability of employers under Article 2180 and their liability for breach of contract [of carriage]. Facts: Petitioner Hedy Gan was driving along North Bay Boulevard on July 4, 1972. There were 2 vehicles parked on the right side of the road. As the petitioner approached the place where the vehicles were parked, a vehicle from the opposite direction tried to overtake another vehicle and encroached the lane of her car. To avoid collision, the petitioner swerved to the right and hit a pedestrian. The pedestrian was pinned to the rear of the parked jeepney and died on arrival to the hospital. Petitioner was found guilty of homicide through reckless imprudence by the trial court. The Corut of Appeals modified the decision and found her guilty of homicide through simple imprudence. Issue: Whether the petitioner is negligent as to hold her guilty for the death of the pedestrian. Held: No, SC reverse. The test for determining whether or not a person is negligent in doing an act whereby injury or damage results to the person or property of another is this: Would a prudent man in the position of the person to whom negligence is attributed foresee harm to the person injured as a reasonable consequence of the course about to be pursued? If so, the law imposes the duty oil the doer to take precaution against its mischievous results and the failure to do so constitutes negligence. A corollary rule is what is known in the law as the emergency rule. "Under that rule, one who suddenly finds himself in a place of danger, and is required to act without time to consider the best means that may be adopted to avoid the impending danger, is not guilty of negligence, if he fails to adopt what subsequently and upon reflection may appear to have been a better method, unless the emergency in which he finds himself is brought about by his own negligence." Applying the above test to the case at bar, we find the petitioner not guilty of the crime of Simple Imprudence resulting in Homicide. The course of action suggested by the appellate court would seem reasonable were it not for the fact that such suggestion did not take into account the amount of time afforded petitioner to react to the situation she was in. For it is undeniable that the suggested course of action presupposes sufficient time for appellant to analyze the situation confronting her and to ponder on which of the different courses of action would result in the least possible harm to herself and to others. The appellate court is asking too much from a mere mortal like the petitioner who in the blink of an eye had to exercise her best judgment to extricate herself from a difficult and dangerous situation caused by the driver of the overtaking vehicle. Petitioner certainly could not be expected to act with all the coolness of a person under normal conditions. The danger confronting petitioner was real and imminent, threatening her very existence. She had no opportunity for rational thinking but only enough time to heed the very powerful instinct of self-preservation. Facts: On November 2, 1911, defendant Segundo Barias, a motorman for the Manila Electric Railroad and Light Company, was driving his car along Rizal Avenue and stopped at an intersection to take on some passengers. He looked backward, presumably to be sure that all passengers were aboard, and then started the car. At that moment, Fermina Jose, a 3-year-old child, walked or ran in front of the car. She was knocked down and dragged at some distance to death. Defendant knew nothing of this until his return when he was informed of what happened. He was charged and found guilty of homicide resulting from reckless negligence. Issue: Whether the evidence shows such carelessness or want of ordinary care on the part of the defendant as to amount to reckless negligence Held: Negligence is want of the care required by the circumstances. It is a relative or comparative, not an absolute, term and its application depends upon the situation of the parties and the degree of care and vigilance which the circumstances reasonably require. Where the danger is great, a high degree of care is necessary, and the failure to observe it is a want of ordinary care under the circumstances. The evidence shows that the thoroughfare on which the incident occurred was a public street in a densely populated section of the city. The hour was six in the morning, or about the time when the residents of such streets begin to move about. Under such conditions a motorman of an electric street car was clearly charged with a high degree of diligence in the performance of his duties. He was bound to know and to recognize that any negligence on his part in observing the track over which he was running his car might result in fatal accidents. He had no right to assume that the track before his car was clear. It was his duty to satisfy himself of that fact by keeping a sharp lookout, and to do everything in his power to avoid the danger which is necessarily incident to the operation of heavy street cars on public thoroughfares in populous sections of the city. At times, it might be highly proper and prudent for him to glance back before again setting his car in motion, to satisfy himself that he understood correctly a signal to go forward or that all the passengers had safely alighted or gotten on board. But we do insist that before setting his car again in motion, it was his duty to satisfy himself that the track was clear, and, for that purpose, to look and to see the track just in front of his car. This the defendant did not do, and the result of his negligence was the death of the child. We hold that the reasons of public policy which impose upon street car companies and their employees the duty of exercising the utmost degree of diligence in securing the safety of passengers, apply with equal force to the duty of avoiding the infliction of injuries upon pedestrians and others on the public streets and thoroughfares over which these companies are authorized to run their cars. And while, in a criminal case, the courts will require proof of the guilt of the company or its employees beyond a reasonable doubt, nevertheless the care or diligence required of the company and its employees is the same in both cases, and the only question to be determined is whether the proofs shows beyond a reasonable doubt that the failure to exercise such care or diligence was the cause of the accident, and that the defendant was guilty thereof. Standing erect, at the position he would ordinarily assume while the car is in motion, the eye of the average motorman might just miss seeing the top of the head of a child, about three years old, standing or walking close up to the front of the car. But it is also very evident that by inclining the head and shoulders forward very slightly, and glancing in front of the car, a person in the position of a motorman could not fail to see a child on the track immediately in front of his car; and we hold that it is the manifest duty of a motorman, who is about to start his car on a public thoroughfare in a thickly-settled district, to satisfy himself that the track is clear immediately in front of his car, and to incline his body slightly forward, if that be necessary, in order to bring the whole track within his line of vision. Of course, this may not be, and usually is not necessary when the car is in motion, but we think that it is required by the dictates of the most ordinary prudence in starting from a standstill. JULIAN SINGSON vs. BANK OF THE PHILIPPINE ISLANDS
Facts: Appeal by plaintiffs from a decision of the Court of First Instance(CFI) Manila dismissing their complaint against defendants. On May 8, 1963, the Singsong commenced the present action against the Bank and its president, Freixas, for damages in consequence of said illegal freezing of plaintiffs' account. After appropriate proceedings, the CFI Manila rendered judgment dismissing the complaint upon the ground that plaintiffs cannot recover from the defendants upon the basis of a quasi-delict, because the relation between the parties is contractual in nature. Issue: Whether or not the existence of a contractual relation between the parties bar recovery of damages. Ruling: The judgment appealed from is reversed holding defendant BPI to pay to the plaintiff’s nominal damages, and attorney's fees, apart from the costs. The Supreme Court have repeatedly held that the existence of a contract between the parties does not bar the commission of a tort by the one against the order and the consequent recovery of damages therefore. In view, of the facts obtaining in the case at bar, and considering, particularly, the circumstance, that the wrong done to the plaintiff was remedied as soon as the President of the bank realized the mistake they had committed, the Court finds that an award of nominal damages the amount of which need not be proven in the sum of P1,000, in addition to attorney's fees in the sum of P500, would suffice to vindicate plaintiff's rights. Facts: A vehicular accident occurred on August 5, 1979, when Martin Belmonte, while driving a cargo truck belonging to petitioner Vicente Vergara, rammed the store-residence of private respondent Amadeo Azarcon, causing damage assessed at P53,024.22. The trial court rendered decision in favor of private respondent, ordering the petitioner to pay, jointly and severally with Traveller’s Insurance and Surety Corporation, the following: (a) P53,024.22 as actual damages; (b) P10,000.00 as moral damages; (c) P10,000.00 as exemplary damages; and (d) the sum of P5,000.00 for attorney's fees and the costs. The insurance company was sentenced to pay to the petitioner the following: (a) P50,000.00 for third party liability under its comprehensive accident insurance policy; and (b) P3,000.00 for and as attorney's fees. The Court of Appeals affirmed the decision in toto; hence, this instant petition for certiorari. Issue: Whether the petitioner is guilty of quasi-delict Held: It was established by competent evidence that the requisites of a quasi-delict are present in the case at bar. These requisites are: (1) damages to the plaintiff; (2) negligence, by act or omission, of which defendant, or some person for whose acts he must respond, was guilty; and (3) the connection of cause and effect between such negligence and the damages. The fact of negligence may be deduced from the surrounding circumstances thereof. According to the police report, "the cargo truck was travelling on the right side of the road going to Manila and then it crossed to the center line and went to the left side of the highway; it then bumped a tricycle; and then another bicycle; and then said cargo truck rammed the store warehouse of the plaintiff." According to the driver of the cargo truck, he applied the brakes, but the latter did not work due to mechanical defect. Contrary to the claim of the petitioner, a mishap caused by defective brakes cannot be considered as fortuitous in character. Certainly, the defects were curable and the accident preventable. AMADO PICART vs. FRANK SMITH, JR.
(37 Phil 809) G.R. No. L-12219, March 15, 1918 Facts: Amado Picart was riding on his pony over Carlatan Bridge in San Fernando, La Union When Frank Smith approached from the opposite direction in an automobile with rate of speed of about ten or twelve miles per hour. As the Smith neared the bridge, he saw a horseman on it and blew his horn to give warning of his approach. He continued his course and after he had taken the bridge he gave two more successive blasts, as it appeared to him that the man on horseback before him was not observing the rule of the road. Picart saw the automobile and heard the warning signals. Being perturbed by the rapid approach of the vehicle, he pulled the pony closely up against the railing on the right side of the bridge instead of going to the left. The bridge is about 75 meters and a width of only 4.80 meters. The vehicle approached without slowing down. Smith quickly turned his car sufficiently to the right to escape hitting the horse alongside of the railing where it as then standing; but due to the automobile’s proximity to the animal, the animal became frightened and turned its body across the bridge with its head toward the railing. In so doing, it has struck on the hock of the left hind leg by the flange of the car and the limb was broken. The horse fell and its rider was thrown off. As a result of its injuries the horse died. The plaintiff received contusions which caused temporary unconsciousness and required medical attention for several days. ISSUE: Whether Smith was guilty of negligence and liable for civil obligations HELD: Yes. The control of the situation had then passed entirely to the defendant; and it was his duty either to bring his car to an immediate stop or, seeing that there were no other persons on the bridge, to take the other side and pass sufficiently far away from the horse to avoid the danger of collision. Instead of doing this, the defendant ran straight on until he was almost upon the horse. A prudent man, placed in the position of the defendant, would in our opinion, have recognized that the course which he was pursuing was fraught with risk, and would therefore have foreseen harm to the horse and the rider as reasonable consequence of that course. Under these circumstances the law imposed on the defendant the duty to guard against the threatened harm. It goes without saying that the plaintiff himself was not free from fault, for he was guilty of antecedent negligence in planting himself on the wrong side of the road. But as we have already stated, the defendant was also negligent; and in such case the problem always is to discover which agent is immediately and directly responsible. Under these circumstances the law is that the person who has the last clear chance to avoid the impending harm and fails to do so is chargeable with the consequences, without reference to the prior negligence of the other party. Test of Negligence: Did the defendant in doing the alleged negligent act use that person would have used in the same situation? If not, then he is guilty of negligence. “Last clear chance” rule is applicable. In other words, when a traveler has reached a point where he cannot extricate himself and vigilance on his part will not avert the injury, his negligence in reaching that position becomes the condition and not the proximate cause of the injury and will not preclude a recovery. Facts:
Plaintiff is the industrial partner, while deceased is the capitalist partner Plaintiff sued the administratrix of the estate of the deceased Santos to recover sum of P9,534, alleged to be the net profits due the plaintiff in a partnership business conducted under the name of "Taller Sinukuan” Respondent admitted existence of partnership. Consequently, she filed a counterclaim praying that the plaintiff be ordered to render an accounting of the partnership business and to pay to the estate of the deceased the sum of P25,000 as net profits, credits, and property pertaining to said deceased. Guidote called several witnesses and introduced a so-called accounting and a mass of documentary evidence which hopelessly and inextricably confused that the court could not consider it of much probative value. However, court ordered that respondent be absolved from the action and to render an account thereof to the administratrix of Santos' estate since plaintiff failed to liquidate the affairs of the partnership Defendant Borja then presented an account and liquidation prepared by a public accountant, Santiago A. Lindaya, showing a balance of P29,088.95 in favor of the defendant. In addition, defendant introduced the public accountant Jose Turiano Santiago to testify as to the results of an audit made by him of the accounts of the partnership. The plaintiff presented Tomas Alfonso and the bookkeeper, Pio Gaudier, as witnesses in his favor to contradict defendant’s witnesses. TC: these two witnesses is so unreliable that the court can place no reliance thereon. Alfonso is the same public accountant who filed the liquidation Exhibit O on behalf of the plaintiff, in relation to the partnership business, which liquidation was disapproved by this court in its decision of August 20, 1923. Gaudier is the same bookkeeper who prepared three entirely separate and distinct liquidation for the same partnership business all of which were repeated by the court in its decisions of September 1, 1922 and the court finds that the testimony given by him at the last hearing is confusing, contradictory and unreliable.1aw As to other witness: Chua Chak – testified and identified the documents shown by counsel for plaintiff can neither read nor write Claro Reyes – testified as to the originality of an exhibit claims that he was forced to admit that it was a mere copy. Hence, the conclusions reached by Santiago A. Lindaya as modified by Jose Turinao Santiago were just and correct and ordered the plaintiff to pay the defendant the sum of P26,020.89 Petitioner’s argument: Since the deceased up to the time of his death generally took care of the payments and collections of the partnership, his legal representatives were under the obligation to render accounts of the operations of the partnership, notwithstanding the fact that the plaintiff was in charge of the business subsequent to the death of Santos. Issues: Whether or not the court erred in ordering the plaintiff and appellant to pay to the defendant and appellee the sum of P26,020.89. Held: No,There may be some merit in Guidote’s contention that the dismissal of his complaint was premature. The better practice would been to let the complaint stand until the result of the liquidation of the partnership affairs was known. But under the circumstances, no harm was done by the dismissal of Guidote’s complaint. However, in Wahl vs. Donaldson Sim & Co. death of one of the partners dissolves the partnership, but that the liquidation of its affairs is by law entrusted, not to the executors of the deceased partner, but to the surviving partners or the liquidators appointed by them In equity surviving partners are treated as trustees of the representatives of the deceased partner, in regard to the interest of the deceased partner in the firm. As a consequence of this trusteeship, surviving partners are held in their dealings with the firm assets and the representatives of the deceased to that nicety of dealing and that strictness of accountability required of and incident to the position of one occupying a confidential relation. It is the duty of surviving partners to render an account of the performance of their trust to the personal representatives of the deceased partner, and to pay over to them the share of such deceased member in the surplus of firm property, whether it consists of real or personal assets. Perhaps the court could have more inclined to question the conclusions of Lindaya and Santiago if the plaintiff had shown a disposition to render an honest account of the business and to affect a fair liquidation of the partnership but instead of doing so, he has by means of very questionable, and apparently false, evidence sought to mulct his deceased partner's estate to the extent of over P9,000. Facts: From the fourth to the twelfth paragraph of the complaint, the plaintiff set forth that, prior to December 1, 1898, Warner, Barnes and Co. were conducting a business in Albay. The principal object of the business was the purchase of hemp in the pueblos of Legaspi and Tobacco for the purpose of bringing it to Manila to sell if for exportation. On the same date, the plaintiff company became interested in the business of Warner, Barnes and Co. in Albay and formed therewith a joint-account partnership in which Aldecoa and Co. were to share equally in the gains and losses of the business. The defendant is the successor to all the rights and obligations of Warner, Barnes and Co., among which is that of being manager of the joint-account partnership with Aldecoa and Co., It is a recognized fact, and one admitted by both parties that the partnership herein concerned concluded its transactions on December 31, 1903. Wherefore the firm of Warner, Barnes & Co. Ltd., the manager of the partnership, in declaring the latter's transactions concluded and in rendering duly verified accounts of its results, owes the duty to include therein the property and effects belonging to the partnership in common. Issue: Whether or not this litigation concerns the rendering of accounts pertaining to the management of the business of a joint-account partnership formed between the two litigants companies. Held: It is a rule of law generally observed that he who takes charge of the management of another's property is bound immediately thereafter to render accounts covering his transactions; and that it is always to be understood that all accounts rendered must be duly substantiated by vouchers. It is one of the duties of the manager of a joint-account partnership, to liquidate the assets that form the common property, and to state the result obtained therefrom in the final rendering of the accounts which he is to present at the conclusion of the partnership. It is a general rule of law that he who takes charge of the management of another's property is bound immediately thereafter to render accounts of his transactions; and that it is always to be understood that all accounts must be duly supported by proofs. The acceptance and approval of any account rendered from a certain date does not excuse nor relieve the manager of a joint-account partnership from complying with the unquestionable duty of rendering accounts covering a period of time prior to the said date. They must be rendered from the time the partnership was formed and its business actually commenced.
Facts: The National Investment and Development Corporation (NIDC), a government corporation, entered into a Joint Venture Agreement (JVA) with Kawasaki Heavy Industries, Ltd. of Kobe, Japan (KAWASAKI) for the construction, operation and management of the Subic National Shipyard Inc., (SNS) which subsequently became the Philippine Shipyard and Engineering Corporation (PHILSECO). Under the JVA, the NDC and KAWASAKI will contribute P330M for the capitalization of PHILSECO in the proportion of 60%-40% respectively. One of its salient features is the grant to the parties of the right of first refusal should either of them decide to sell, assign or transfer its interest in the joint venture. NIDC transferred all its rights, title and interest in PHILSECO to the Philippine National Bank (PNB). Such interests were subsequently transferred to the National Government pursuant to an Administrative Order. When the former President Aquino issued Proclamation No. 50 establishing the Committee on Privatization (COP) and the Asset Privatization Trust (APT) to take title to, and possession of, conserve, manage and dispose of non-performing assets of the National Government, a trust agreement was entered into between the National Government and the APT wherein the latter was named the trustee of the National Government’s share in PHILSECO. In the interest of the national economy and the government, the COP and the APT deemed it best to sell the National Government’s share in PHILSECO to private entities. After a series of negotiations between the APT and KAWASAKI , they agreed that the latter’s right of first refusal under the JVA be “exchanged” for the right to top by 5%, the highest bid for the said shares. They further agreed that KAWASAKI woul.d be entitled to name a company in which it was a stockholder, which could exercise the right to top. KAWASAKI then informed APT that Philyards Holdings, Inc. (PHI) would exercise its right to top. At the public bidding, petitioner J.G. Summit Holdings Inc. submitted a bid of Two Billion and Thirty Million Pesos (Php2,030,000,000.00) with an acknowledgement of KAWASAKI/PHILYARDS right to top. As petitioner was declared the highest bidder, the COP approved the sale “subject to the right of Kawasaki Heavy Industries, Inc. / PHILYARDS Holdings Inc. to top JG’s bid by 5% as specified in the bidding rules.” On the other hand, the respondent by virtue of right to top by 5%, the highest bid for the said shares timely exercised the same. Petitioners, in their motion for reconsideration, raised, inter alia, the issue on the maintenance of the 60%-40% relationship between the NIDC and KAWASAKI arising from the Constitution because PHILSECO is a landholding corporation and need not be a public utility to be bound by the 60%-40% constitutional limitation. Issue: Whether under the 1977 Joint Venture Agreement, KAWASAKI can purchase only a maximum of 40% of PHILSECO’s total capitalization. The right of first refusal is meant to protect the original or remaining joint ventures or shareholder(s) from the entry of third persons who are not acceptable to it as co-venturer(s) or co-shareholder(s). The joint venture between the Philippine Government and KAWASAKI is in the nature of a partnership36 which, unlike an ordinary corporation, is based on delectus personae.37 No one can become a member of the partnership association without the consent of all the other associates. The right of first refusal thus ensures that the parties are given control over who may become a new partner in substitution of or in addition to the original partners. Should the selling partner decide to dispose all its shares, the non-selling partner may acquire all these shares and terminate the partnership. No person or corporation can be compelled to remain or to continue the partnership. Of course, this presupposes that there are no other restrictions in the maximum allowable share that the non-selling partner may acquire such as the constitutional restriction on foreign ownership in public utility. The theory that KAWASAKI can acquire, as a maximum, only 40% of PHILSECO’s shares is correct only if a shipyard is a public utility. In such instance, the non-selling partner who is an alien can acquire only a maximum of 40% of the total capitalization of a public utility despite the grant of first refusal. The partners cannot, by mere agreement, avoid the constitutional proscription. But as afore-discussed, PHILSECO is not a public utility, and no other restriction is present that would limit the right of KAWASAKI to purchase the Government’s share to 40% of Philseco’s total capitalization. Furthermore, the phrase “under the same terms” in section 1.4 cannot be given an interpretation that would limit the right of KAWASAKI to purchase PHILSECO shares only to the extent of its original proportionate contribution of 40% to the total capitalization of the PHILSECO. Taken together with the whole of section 1.4, the phrase “under the same terms” means that a partner to the joint venture that decides to sell its shares to a third party shall make a similar offer to the non-selling partner. The selling partner cannot make a different or a more onerous offer to the non-selling partner. The exercise of first refusal presupposes that the non-selling partner is aware of the terms of the conditions attendant to the sale for it to have a guided choice. While the right of first refusal protects the non-selling partner from the entry of third persons, it cannot also deprive the other partner the right to sell its shares to third persons if, under the same offer, it does not buy the shares. Apart from the right of first refusal, the parties also have preemptive rights under section 1.5 in the unissued shares of Philseco. Unlike the former, this situation does not contemplate transfer of a partner’s shares to third parties but the issuance of new Philseco shares. The grant of preemptive rights preserves the proportionate shares of the original partners so as not to dilute their respective interests with the issuance of the new shares. Unlike the right of first refusal, a preemptive right gives a partner a preferential right over the newly issued shares only to the extent that it retains its original proportionate share in the joint venture. The case at bar does not concern the issuance of new shares but the transfer of a partner’s share in the joint venture. Verily, the operative protective mechanism is the right of first refusal which does not impose any limitation in the maximum shares that the non-selling partner may acquire. Held: The court upheld the validity of the mutual rights of first refusal under the JVA between KAWASAKI and NIDC. The right of first refusal is a property right of PHILSECO shareholders, KAWASAKI and NIDC, under the terms of their JVA. This right allows them to purchase the shares of their co-shareholder before they are offered to a third party. The agreement of co-shareholders to mutually grant this right to each other, by itself, does not constitute a violation of the provisions of the Constitution limiting land ownership to Filipinos and Filipino corporations. As PHILYARDS correctly puts it, if PHILSECO still owns the land, the right of first refusal can be validly assigned to a qualified Filipino entity in order to maintain the 60%-40% ration. This transfer by itself, does not amount to a violation of the Anti-Dummy Laws, absent proof of any fraudulent intent. The transfer could be made either to a nominee or such other party which the holder of the right of first refusal feels it can comfortably do business with. Alternatively, PHILSECO may divest of its landholdings, in which case KAWASAKI, in exercising its right of first refusal, can exceed 40% of PHILSECO’s equity. In fact, in can even be said that if the foreign shareholdings of a landholding corporation exceeds 40%, it is not the foreign stockholders’ ownership of the shares which is adversely affected but the capacity of the corporation to own land—that is, the corporation becomes disqualified to own land. This finds support under the basic corporate law principle that the corporation and its stockholders are separate judicial entities. In this vein, the right of first refusal over shares pertains to the shareholders whereas the capacity to own land pertains to the corporation. Hence, the fact that PHILSECO owns land cannot deprive stockholders of their right of first refusal. No law disqualifies a person from purchasing shares in a landholding corporation even if the latter will exceed the allowed foreign equity, what the law disqualifies is the corporation from owning land. Facts:
Private respondent Nenita A. Anay met petitioner William T. Belo, then the vice-president for operations of Ultra Clean Water Purifier, through her former employer in Bangkok. Belo introduced Anay to petitioner Marjorie Tocao, who conveyed her desire to enter into a joint venture with her for the importation and local distribution of kitchen cookwares. Under the joint venture, Belo acted as capitalist, Tocao as president and general manager, and Anay as head of the marketing department and later, vice-president for sales The parties agreed that Belo's name should not appear in any documents relating to their transactions with West Bend Company. Anay having secured the distributorship of cookware products from the West Bend Company and organized the administrative staff and the sales force, the cookware business took off successfully. They operated under the name of Geminesse Enterprise, a sole proprietorship registered in Marjorie Tocao's name. The parties agreed further that Anay would be entitled to: (1) ten percent (10%) of the annual net profits of the business; (2) overriding commission of six percent (6%) of the overall weekly production; (3) thirty percent (30%) of the sales she would make; and (4) two percent (2%) for her demonstration services. The agreement was not reduced to writing on the strength of Belo's assurances that he was sincere, dependable and honest when it came to financial commitments. On October 9, 1987, Anay learned that Marjorie Tocao had signed a letter addressed to the Cubao sales office to the effect that she was no longer the vice-president of Geminesse Enterprise. Anay attempted to contact Belo. She wrote him twice to demand her overriding commission for the period of January 8, 1988 to February 5, 1988 and the audit of the company to determine her share in the net profits. Anay still received her five percent (5%) overriding commission up to December 1987. The following year, 1988, she did not receive the same commission although the company netted a gross sales of P 13,300,360.00. On April 5, 1988, Nenita A. Anay filed Civil Case No. 88-509, a complaint for sum of money with damages against Marjorie D. Tocao and William Belo before the Regional Trial Court of Makati, Branch 140 The trial court held that there was indeed an "oral partnership agreement between the plaintiff and the defendants. The Court of Appeals affirmed the lower court’s decision. Issue: Whether the parties formed a partnership Held: Yes, the parties involved in this case formed a partnership The Supreme Court held that to be considered a juridical personality, a partnership must fulfill these requisites: (1) two or more persons bind themselves to contribute money, property or industry to a common fund; and (2) intention on the part of the partners to divide the profits among themselves. It may be constituted in any form; a public instrument is necessary only where immovable property or real rights are contributed thereto. This implies that since a contract of partnership is consensual, an oral contract of partnership is as good as a written one. In the case at hand, Belo acted as capitalist while Tocao as president and general manager, and Anay as head of the marketing department and later, vice-president for sales. Furthermore, Anay was entitled to a percentage of the net profits of the business. Therefore, the parties formed a partnership. Facts:
Private respondent Olivia V. Yanson and Petitioner Lourdes Navarro were engaged in the business of Air Freight Service Agency. Pursuant to the Agreement which they entered, they agreed to operate the said Agency; It is the Private Respondent Olivia Yanson who supplies the necessary equipment and money used in the operation of the agency. Her brother in the person of Atty. Rodolfo Villaflores was the manager thereof while petitioner Lourdes Navarro was the Cashier; In compliance to her obligation as stated in their agreement, private respondent brought into their business certain chattels or movables or personal properties. However, those personal properties remain to be registered in her name; Among the provisions stipulated in their agreement is the equal sharing of whatever proceeds realized from their business; However, sometime on July 23, 1976, private respondent Olivia V. Yanson, in order for her to recovery the above mentioned personal properties which she brought into their business, filed a complaint against petitioner Lourdes Navarro for "Delivery of Personal Properties With Damages and with an application for a writ of replevin. Private respondents' application for a writ of replevin was later approved/granted by the trial court. For her defense, petitioner Navarro argue that she and private respondent Yanson actually formed a verbal partnership which was engaged in the business of Air Freight Service Agency. She contended that the decision sustaining the writ of replevin is void since the properties belonging to the partnership do not actually belong to any of the parties until the final disposition and winding up of the partnership. Issue:
Article 1767 of the New Civil Code defines the contract of partnership: Art. 1767. By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the proceeds among themselves. A cursory examination of the evidence presented no proof that a partnership, whether oral or written had been constituted. In fact, those movables brought by the plaintiff for the use in the operation of the business remain registered in her name. While there may have been co-ownership or co-possession of some items and/or any sharing of proceeds by way of advances received by both plaintiff and the defendant, these are not indicative and supportive of the existence of any partnership between them. Art. 1769 par. 2 provides: Co-ownership or co-possession does not of itself establish a partnership, whether such co-owners or co-possessors do or do not share any profits made using the property” Besides, the alleged profit was a difference found after evaluating the assets and not arising from the real operation of the business. In accounting procedures, strictly, this could not be profit but a net worth. Facts:
The law firm of ROSS, LAWRENCE, SELPH and CARRASCOSO was duly registered in the Mercantile Registry on 4 January 1937 and reconstituted with the Securities and Exchange Commission on 4 August 1948. The SEC records show that there were several subsequent amendments to the articles of partnership to change the firm name. On 19 December 1980, Joaquin L. Misa, Jesus B. Bito, and Mariano M. Lozada associated themselves together, as senior partners with Gregorio F. Ortega, Tomas O. del Castillo, Jr., and Benjamin Bacorro, as junior partners. On February 17, 1988, petitioner-appellant wrote the respondents-appellees a letter stating his withdrawal and retirement from the firm of Bito, Misa and Lozada and requested to make proper liquidation including his interest to the two floors of the building. The petitioner led with this Commission's Securities Investigation and Clearing Department (SICD) a petition for dissolution and liquidation of partnership which resulted to respondents-appellees filing their opposition. The Hearing Officer held that the withdrawal of Atty. Misa had dissolved the partnership of Bito, Misa and Lozada. A Motion for Reconsideration was sought but during the pendency of the case in the CA, Bito and Lozada died which prompted Misa to renew his application for receivership. Issues: Whether or not CA has erred in holding that the partnership of Bito, Misa & Lozada is a partnership at will; Whether or not CA has erred in holding that the withdrawal of private respondent dissolved the partnership regardless of his good or bad faith Held: The birth and life of a partnership at will is predicated on the mutual desire and consent of the partners. The right to choose with whom a person wishes to associate himself is the very foundation and essence of that partnership. Its continued existence is, in turn, dependent on the constancy of that mutual resolve, along with each partner's capability to give it, and the absence of a cause for dissolution provided by the law itself. Any one of the partners may, at his sole pleasure, dictate a dissolution of the partnership at will. Neither would the presence of a period for its specific duration or the statement of a particular purpose for its creation prevent the dissolution of any partnership by an act or will of a partner. Among partners, mutual agency arises and the doctrine of delectus personae allows them to have the power, although not necessarily the right, to dissolve the partnership. The Court we accord to the CA and the respondent Commission on their common factual finding, that Attorney Misa did not act in bad faith. Public respondents viewed his withdrawal to have been spurred by "interpersonal conflict" among the partners. It would not be right to let any of the partners remain in the partnership under such an atmosphere of animosity; certainly, not against their will. For as long as the reason for withdrawal of a partner is not contrary to the dictates of justice and fairness, nor for the purpose of unduly visiting harm and damage upon the partnership, bad faith cannot be said to characterize the act. Facts:
This is a petition for review on certiorari assailing CA decision which affirmed the RTC decision. Santos and Nieves Reyes verbally agreed that Santos would act as financier while Nieves and Meliton Zabat would act as solicitors for membership and collectors of loan payment. 70% of the profits would go to Santos while Nieves and Zabat would get 15% each. It was a lending venture business. Nieves introduced Gragera of Monte Maria Corp, who obtained short term loans for the partnership in consideration of commissions. In 1986, Nieves and Zabat executed an agreement which formalized their earlier verbal agreement. But Santis and Nieves later discovered that Zabat engaged in the same lending business. Hence, Zabat was expelled from the partnership. In June 1987, Santos filed a complaint for recovery of sum of money and damages against the respondents, alleging them as employees who misappropriated the funds. Respondents assert they were partners and not mere employees. Santos claimed that after discovery of Zabat's activities, he ceased infusing funds thereby extinguishing the partnership. Issue: Whether or not the parties' relationship was one of partnership or of employer-employee Held: Yes, they were partners. By the contract of partnership, two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves. The "Articles of Agreement" stipulated that the signatories shall share the profits of the business in a 70-15-15 manner, with petitioner getting the lion's share. This stipulation clearly proved the establishment of a partnership. Indeed, the partnership was established to engage in a money-lending business, despite the fact that it was formalized only after the Memorandum of Agreement had been signed by petitioner and Gragera. Facts:
Spouses Martin Ramos and Candida Tanate died on October 4, 1906 and October 26, 1880, respectively. They were survived by their 3 children. Moreover, Martin was survived by his 7 natural children. In December 1906, a special proceeding for the settlement of the intestate estate of said spouses was conducted. Rafael Ramos, a brother of Martin, administered the estate for more than 6 years. Eventually, a partition project was submitted which was signed by the 3 legitimate children and 2 of the 7 natural children. A certain Timoteo Zayco signed in representation of the other 5 natural children who were minors. The partition was sworn to before a justice of peace. The conjugal hereditary estate was appraised at P74,984.93, consisting of 18 parcels of land, some head of cattle and the advances to the legitimate children. ½ thereof represented the estate of Martin. 1/3 thereof was the free portion or P12,497.98. The shares of the 7 natural children were to be taken from that 1/3 free portion. Indeed, the partition was made in accordance with the Old Civil code. Thereafter, Judge Richard Campbell approved the partition project. The court declared that the proceeding will be considered closed, and the record should be archived as soon as proof was submitted that each he3ir had received the portion adjudicated to him. On February 3, 1914, Judge Nepumoceno asked the administrator to submit a report showing that the shares of the heirs had been delivered to them as required by the previous decision. Nevertheless, the manifestation was not in strict conformity with the terms of the judge’s order and with the partition project itself. 8 lots of the Himamaylan Cadastre were registered in equal shares in the names of Gregoria (widow of Jose Ramos) and her daughter, when in fact the administrator was supposed to pay the cash adjudications to each of them as enshrined in the partition project. Plaintiffs were then constrained to bring the suit before the court seeking for the reconveyance in their favor their corresponding participations in said parcels of land in accordance with Article 840 of the old Civil Code. Note that 1/6 of the subject lots represents the 1/3 free portion of martin’s shares which will eventually redound to the shares of his 7 legally acknowledged natural children. The petitioners’ action was predicated on the theory that their shares were merely held in trust by defendants. Nonetheless, no Deed of Trust was alleged and proven. Ultimately, the lower court dismissed the complaint on the grounds of res judicata, prescription and laches. Issue: Whether or not the plaintiffs’ action was barred by prescription, laches, and res judicata to the effect that they were denied of their right to share in their father’s estate. Held: Yes, there was inexcusable delay thereby making the plaintiffs’ action unquestionably barred by prescription and laches and also by res judicata. Inextricably interwoven with the questions of prescription and res judicata is the question on the existence of a trust. It is noteworthy that the main thrust of plaintiffs’ action is the alleged holding of their shares in trust by defendants. Emanating from such, the Supreme Court elucidated on the nature of trusts and the availability of prescription and laches to bar the action for reconveyance of property allegedly held in trust. It is said that trust is the right, enforceable solely in equity to the beneficial enjoyment of property, the legal title to which is vested in another. It may either be express or implied. The latter ids further subdivided into resulting and constructive trusts. Applying it now to the case at bar, the plaintiffs did not prove any express trust. Neither did they specify the kind of implied trust contemplated in their action. Therefore, its enforcement maybe barred by laches and prescription whether they contemplate a resulting or a constructive trust. Facts:
Petitioner acquired 10 checks from a certain Antonio Ramirez. The said checks were deposited by the petitioner to the respondent bank. The Respondent bank temporarily credited the said checks to the account of the petitioner. After 3 months, the checks were found out to be forged. The respondent bank debited the account of the petitioner. The petitioner filed a collection of sums of money against the respondent. The CFI and the Court of Appeals dismissed the said complaint, hence this case. Issue: Whether the respondent is liable to return the amount debited from the account of the Petitioner. Held: No, the respondent acted within legal bounds when it debited the petitioner’s account. When the petitioner deposited the checks with the respondent, the nature of the relationship created at that stage was one of agency, that is, the bank was to collect from the drawees of the checks the corresponding proceeds. It is true that the respondent had already collected the proceeds of the checks when it debited the petitioner’s account. Section 23 of the Negotiable Instruments Law states that “When a signature is forged or made without the authority of the person whose signature it purports to be, it is wholly inoperative, and no right to retain the instrument, or to give a discharge therefor, or to enforce payment thereof against any party thereto, can be acquired through or under such signature, unless the party against whom it is sought to enforce such right is precluded from setting up the forgery or want of authority.” Facts:
A fire broke out at the Caltex service station at the corner of Antipolo street and Rizal Avenue, Manila. It started while gasoline was being hosed from a tank truck into the underground storage, right at the opening of the receiving tank where the nozzle of the hose was inserted (a lighted matchstick was thrown by a stranger near the opening, causing the fire). The fire spread to and burned several neighboring houses. Their owners, among them petitioners here, sued respondents Caltex (Phil.), Inc. and Boquiren, the first as alleged owner of the station and the second as its agent in charge of operation. Negligence on the part of both of them was attributed as the cause of the fire. The trial court and the CA found that petitioners failed to prove negligence and that respondents had exercised due care in the premises and with respect to the supervision of their employees. Hence this petition. Issue: Whether or not without proof as to the cause and origin of the fire, the doctrine of res ipsa loquitur should apply so as to presume negligence on the part of appellees Held: The decision appealed from is reversed and respondents-appellees are held liable solidarily to appellants, Both the trial court and the appellate court refused to apply the doctrine in the instant case on the grounds that “as to (its) applicability … in the Philippines, there seems to be nothing definite,” and that while the rules do not prohibit its adoption in appropriate cases, “in the case at bar, however, we find no practical use for such doctrine.” The question deserves more than such summary dismissal. The doctrine has actually been applied in this jurisdiction, in the case of Espiritu vs. Philippine Power and Development Co The principle enunciated in the aforequoted case applies with equal force here. The gasoline station, with all its appliances, equipment and employees, was under the control of appellees. A fire occurred therein and spread to and burned the neighboring houses. The persons who knew or could have known how the fire started were appellees and their employees, but they gave no explanation thereof whatsoever. It is a fair and reasonable inference that the incident happened because of want of care. Even then the fire possibly would not have spread to the neighboring houses were it not for another negligent omission on the part of defendants, namely, their failure to provide a concrete wall high enough to prevent the flames from leaping over it. Defendants’ negligence, therefore, was not only with respect to the cause of the fire but also with respect to the spread thereof to the neighboring houses. There is an admission on the part of Boquiren in his amended answer to the second amended complaint that “the fire was caused through the acts of a stranger who, without authority, or permission of answering defendant, passed through the gasoline station and negligently threw a lighted match in the premises.” No evidence on this point was adduced, but assuming the allegation to be true — certainly any unfavorable inference from the admission may be taken against Boquiren — it does not extenuate his negligence. A decision of the Supreme Court of Texas, upon facts analogous to those of the present case, states the rule which we find acceptable here. “It is the rule that those who distribute a dangerous article or agent, owe a degree of protection to the public proportionate to and commensurate with a danger involved … we think it is the generally accepted rule as applied to torts that ‘if the effects of the actor’s negligent conduct actively and continuously operate to bring about harm to another, the fact that the active and substantially simultaneous operation of the effects of a third person’s innocent, tortious or criminal act is also a substantial factor in bringing about the harm, does not protect the actor from liability.’ Stated in another way, “The intention of an unforeseen and unexpected cause, is not sufficient to relieve a wrongdoer from consequences of negligence, if such negligence directly and proximately cooperates with the independent cause in the resulting injury.” |
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