atp cases compilation 1

7/26/2019 Atp Cases Compilation 1

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G.R. No. L-45425 April 29, 1939

JOSE GATCHALIAN, ET AL., plainti!-app"llant!,#!.THE COLLECTOR O$ INTERNAL RE%EN&E, '"("n'ant-app"ll"".

G)ill"r*o +. R""! (or app"llant!.

O" o( t/" Soliitor-G"n"ral T)a!on (or app"ll"".I0ERIAL, J.

T/" plainti ro)/t t/i! ation to r"o#"r (ro* t/" '"("n'antColl"tor o( Int"rnal R"#"n)" t/" !)* o( 1,63.44, 7it/ l"alint"r"!t t/"r"on, 7/i/ t/" pai' )n'"r prot"!t 7a o( ino*"ta8. T/" app"al"' (ro* t/" '"i!ion r"n'"r"' in t/" a!" onOto"r 23, 1936 t/" Co)rt o( $ir!t In!tan" o( t/" Cit o( 0anila,7/i/ 'i!*i!!"' t/" ation 7it/ t/" o!t! aain!t t/"*.

T/" a!" 7a! !)*itt"' (or '"i!ion )pon t/" (ollo7in !tip)lation o(

(at!Co*" no7 t/" parti"! to t/" ao#"-*"ntion"' a!", t/ro)/ t/"irr"!p"ti#" )n'"r!in"' attorn"!, an' /"r" ar"" to r"!p"t()ll!)*it to t/i! Honoral" Co)rt t/" a!" )pon t/" (ollo7in!tat"*"nt o( (at!

1. T/at plainti ar" all r"!i'"nt! o( t/" *)niipalit o( )lilan,+)laan, an' t/at '"("n'ant i! t/" Coll"tor o( Int"rnal R"#"n)" o(t/" /ilippin"!

2. T/at prior to :""*"r 15, 1934 plainti!, in or'"r to "nal"

t/"* to p)r/a!" on" !7""p!ta;"! ti;"t #al)"' at t7o p"!o!

4. G)ill"r*o

Tapia ....................................................................................................13

5. J"!)!L"a!pi .......................................................................................................156. Jo!"Sil#a .....................................................................................................

........ .>??. To*a!a0"ra'o ................................................................................................ .>. J)lioGat/alian ................................................................................................... .139. E*ilianaSantiao ................................................................................................ .131>. 0aria C.L"a!pi ...............................................................................................

.1611. $rani!oCaral ...............................................................................................

.1312. Gon@aloJa#i"r ....................................................................................................

.1413. 0ariaSantiao ................................................................................................... .1?14. +)"na#"nt)raG)@*an ................................................................................... .13

15. 0arianoSanto! ..................................................................................................14

Total ................................................................................................... .....2.>>3. T/at i**"'iat"l t/"r"a(t"r )t prior to :""*"r 15, 1934,plainti! p)r/a!"', in t/" or'inar o)r!" o( )!in"!!, (ro* on" o(t/" ')l a)t/ori@"' a"nt! o( t/" National C/arit S7""p!ta;"!O" on" ti;"t "arin No. 1?63? (or t/" !)* o( t7o p"!o!


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4. T/at a! a r"!)lt o( t/" 'ra7in o( t/" !7""p!ta;"! on :""*"r15, 1934, t/" ao#"-*"ntion"' ti;"t "arin No. 1?63? 7on on"o( t/" t/ir' pri@"! in t/" a*o)nt o( 5>,>>> an' t/at t/"orr"!pon'in /"; o#"rin t/" ao#"-*"ntion"' pri@" o( 5>,>>>7a! 'ra7n t/" National C/arit S7""p!ta;"! O" in (a#or o(Jo!" Gat/alian Co*pan aain!t t/" /ilippin" National +an;,7/i/ /"; 7a! a!/"' ')rin t/" latt"r part o( :""*"r, 1934 Jo!" Gat/alian Co*pan

5. T/at on :""*"r 29, 1934, Jo!" Gat/alian 7a! r"B)ir"' ino*" ta8 "8a*in"r Al(r"'o :a#i' to l" t/" orr"!pon'in ino*"ta8 r"t)rn o#"rin t/" pri@" 7on Jo!" Gat/alian Co*pan an't/at on :""*"r 29, 1934, t/" !ai' r"t)rn 7a! !in"' Jo!"Gat/alian, a op o( 7/i/ r"t)rn i! "nlo!"' a! E8/iit A an' *a'"a part /"r"o(

6. T/at on Jan)ar , 1935, t/" '"("n'ant *a'" an a!!"!!*"ntaain!t Jo!" Gat/alian Co*pan r"B)"!tin t/" pa*"nt o( t/"!)* o( 1,499.94 to t/" '"p)t pro#inial tr"a!)r"r o( )lilan,

+)laan, i#in to !ai' Jo!" Gat/alian Co*pan )ntil Jan)ar 2>,1935 7it/in 7/i/ to pa t/" !ai' a*o)nt o( 1,499.94, a op o(7/i/ l"tt"r *ar;"' E8/iit + i! "nlo!"' an' *a'" a part /"r"o(

?. T/at on Jan)ar 2>, 1935, t/" plainti!, t/ro)/ t/"ir attorn",!"nt to '"("n'ant a r"pl, a op o( 7/i/ *ar;"' E8/iit C i!atta/"' an' *a'" a part /"r"o(, r"B)"!tin "8"*ption (ro*pa*"nt o( t/" ino*" ta8 to 7/i/ r"pl t/"r" 7"r" "nlo!"'(t""n , 1935 7it/in 7/i/to pa t/" !ai' ta8

9. T/at in #i"7 o( t/" (ail)r" o( t/" plainti! to pa t/" a*o)nt o( ta8'"*an'"' t/" '"("n'ant, not7it/!tan'in !)!"B)"nt '"*an'*a'" '"("n'ant )pon t/" plainti! t/ro)/ t/"ir attorn" on0ar/ 23, 1935, a op o( 7/i/ *ar;"' E8/iit H i! "nlo!"','"("n'ant on 0a 13, 1935 i!!)"' a 7arrant o( 'i!traint an' l"#aain!t t/" prop"rt o( t/" plainti!, a op o( 7/i/ 7arrant *ar;"'E8/iit I i! "nlo!"' an' *a'" a part /"r"o(

1>. T/at to a#oi' "*arra!!*"nt ari!in (ro* t/" "*aro o( t/"prop"rt o( t/" plainti!, t/" !ai' plainti! on J)n" 15, 1935, t/ro)/Gr"oria Cri!toal, 0aria C. L"a!pi an' J"!)! L"a!pi, pai' )n'"rprot"!t t/" !)* o( 6>1.51 a! part o( t/" ta8 an' p"nalti"! to t/"*)niipal tr"a!)r"r o( )lilan, +)laan, a! "#i'"n"' oialr""ipt No. ?454?9 7/i/ i! atta/"' an' *ar;"' E8/iit J an'*a'" a part /"r"o(, an' r"B)"!t"' '"("n'ant t/at plainti! "allo7"' to pa )n'"r prot"!t t/" alan" o( t/" ta8 an' p"nalti"! *ont/l in!tall*"nt!

11. T/at plaintiD! r"B)"!t to pa t/" alan" o( t/" ta8 an'

p"nalti"! 7a! rant"' '"("n'ant !)"t to t/" on'ition t/atplainti! l" t/" )!)al on' !")r"' t7o !ol#"nt p"r!on! to)arant"" pro*pt pa*"nt o( "a/ in!tall*"nt! a! it "o*"! ')"

12. T/at on J)l 16, 1935, plainti l"' a on', a op o( 7/i/*ar;"' E8/iit F i! "nlo!"' an' *a'" a part /"r"o(, to )arant""t/" pa*"nt o( t/" alan" o( t/" all""' ta8 liailit *ont/lin!tall*"nt! at t/" rat" o( 11.?> a *ont/, t/" r!t pa*"nt )n'"rprot"!t to " ""t"' on or "(or" J)l 31, 1935

13. T/at on J)l 16, 1935 t/" !ai' plainti! (or*all prot"!t"'aain!t t/" pa*"nt o( t/" !)* o( 6>2.51, a op o( 7/i/ prot"!t

i! atta/"' an' *ar;"' E8/iit L, )t t/at '"("n'ant in /i! l"tt"r'at"' A))!t 1, 1935 o#"rr)l"' t/" prot"!t an' '"ni"' t/" r"B)"!t(or r"()n' o( t/" plainti!

14. T/at, in #i"7 o( t/" (ail)r" o( t/" plainti! to pa t/" *ont/lin!tall*"nt! in aor'an" 7it/ t/" t"r*! an' on'ition! o( on'l"' t/"*, t/" '"("n'ant in /i! l"tt"r 'at"' J)l 23, 1935, op o(7/i/ i! atta/"' an' *ar;"' E8/iit 0, or'"r"' t/" *)niipaltr"a!)r"r o( )lilan, +)laan to "8")t" 7it/in #" 'a! t/" 7arranto( 'i!traint an' l"# i!!)"' aain!t t/" plainti! on 0a 13, 1935

15. T/at in or'"r to a#oi' annoan" an' "*arra!!*"nt ari!in

(ro* t/" l"# o( t/"ir prop"rt, t/" plainti! on A))!t 2, 1936,


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t/ro)/ Jo!" Gat/alian, G)ill"r*o Tapia, 0aria Santiao an'E*iliano Santiao, pai' )n'"r prot"!t to t/" *)niipal tr"a!)r"r o()lilan, +)laan t/" !)* o( 1,26>.93 r"pr"!"ntin t/" )npai'alan" o( t/" ino*" ta8 an' p"nalti"! '"*an'"' '"("n'ant a!"#i'"n"' ino*" ta8 r""ipt No. 3511 7/i/ i! atta/"' an'*ar;"' E8/iit N an' *a'" a part /"r"o( an' t/at on S"pt"*"r 3,1936, t/" plainti! (or*all prot"!t"' to t/" '"("n'ant aain!t t/"pa*"nt o( !ai' a*o)nt an' r"B)"!t"' t/" r"()n' t/"r"o(, op o(7/i/ i! atta/"' an' *ar;"' E8/iit O an' *a'" part /"r"o( )tt/at on S"pt"*"r 4, 1936, t/" '"("n'ant o#"rr)l"' t/" prot"!t an''"ni"' t/" r"()n' t/"r"o( op o( 7/i/ i! atta/"' an' *ar;"'E8/iit an' *a'" a part /"r"o( an'

16. T/at plainti! '"*an'"' )pon '"("n'ant t/" r"()n' o( t/" total!)* o( on" t/o)!an' "i/t /)n'r"' an' !i8t t/r"" p"!o! an' (ort-(o)r "nta#o! - :o -

11. J"!)! L"a!pi ............................................. .15 - :o -12. G)ill"r*o Tapia ........................................... .13 - :o -13. Sat)rnina Sil#a ............................................ .> - :o -14. Gr"oria Cri!toal ....................................... .1 - :o -15. Jo!" Gat/alian ............................................ .1 - :o -

2.>> Total o!t o( !ai'ti;"t an' t/at, t/"r"(or", t/" p"r!on! na*"' ao#" ar" "ntitl"' tot/" part! o( 7/at"#"r pri@" t/at *i/t " 7on !ai' ti;"t.

)lilan, +)laan, .I.

? 1,?5 36>

1,515. J)lio Gat/alian +"atri@ G)@*an ....... :- .13 3,15> 24>

2,91>9. E*iliana Santiao ...................................... :-9 .13 3,325 36>

2,965

1>. 0aria C. L"a!pi ...................................... :-1> .16 4,1>>


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96>3,14>11. $rani!o Caral ...................................... :-11 .13 3,325

36>2,96512. Gon@alo Ja#i"r .......................................... :-12 .14 3,325

36>2,96513. 0aria Santiao ..........................................:-13 .1? 4,35>

36>3,99>14. +)"na#"nt)ra G)@*an ........................... :-14 .13 3,325

36>2,96515. 0ariano Santo! ........................................ :-15 .14 3,325

36>2,965

2.>>5>,>>>T/" l"al B)"!tion! rai!"' in plainti!-app"llant!D #" a!!in"'"rror! *a prop"rl " r"')"' to t/" t7o (ollo7in ,>>> in(a#or o( Jo!" Gat/alian an' o*pan, an' t/" !ai' partn"r, in t/"!a*" apait, oll"t"' t/" !ai' /";. All t/"!" ir)*!tan"!r"p"l t/" i'"a t/at t/" plainti! orani@"' an' (or*"' a o**)nit

o( prop"rt onl.Ha#in orani@"' an' on!tit)t"' a partn"r!/ip o( a i#il nat)r", t/"!ai' "ntit i! t/" on" o)n' to pa t/" ino*" ta8 7/i/ t/"'"("n'ant oll"t"' )n'"r t/" a(or"!ai' !"tion 1>


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on)r.

G.R. No. L-4935 0a 2, 1954J. 0. T&ASON CO., INC., r"pr"!"nt"' it 0anain ARTNER,GREGORIA ARANETA, INC., plainti-app"ll"",#!.

K&IRINO +OLAOS, '"("n'ant-app"llant.Aran"ta an' Aran"ta (or app"ll"".Jo!" A. +)"n'ia (or app"llant.REES, J.T/i! i! an ation oriinall ro)/t in t/" Co)rt o( $ir!t In!tan" o(Ri@al, K)"@on Cit +ran/, to r"o#"r po!!"!ion o( r"i!t"r"' lan'!it)at"' in arrio Tatalon, K)"@on Cit.laintiD! o*plaint 7a! a*"n'"' t/r"" ti*"! 7it/ r"!p"t to t/""8t"nt an' '"!ription o( t/" lan' !o)/t to " r"o#"r"'. T/"oriinal o*plaint '"!ri"' t/" lan' a! a portion o( a lot r"i!t"r"'in plaintiD! na*" )n'"r Tran!("r C"rtiat" o( Titl" No. 3?66 o( t/"lan' r"or' o( Ri@al ro#in" an' a! ontainin an ar"a o( 13

/"tar"! *or" or l"!!. +)t t/" o*plaint 7a! a*"n'"' r"')int/" ar"a o( 6 /"tar"!, *or" or l"!!, a(t"r t/" '"("n'ant /a'in'iat"' t/" plaintiD! !)r#"or! t/" portion o( lan' lai*"' an'o)pi"' /i*. T/" !"on' a*"n'*"nt "a*" n""!!ar an'7a! allo7"' (ollo7in t/" t"!ti*on o( plaintiD! !)r#"or! t/at aportion o( t/" ar"a 7a! "*ra"' in anot/"r "rtiat" o( titl",7/i/ 7a! plaintiD! Tran!("r C"rtiat" o( Titl" No. 3?6??. An' !tilllat"r, in t/" o)r!" o( trial, a(t"r '"("n'antD! !)r#"or an' 7itn"!!,K)irino $"ria, /a' t"!ti"' t/at t/" ar"a o)pi"' an' lai*"' '"("n'ant 7a! ao)t 13 /"tar"!, a! !/o7n in /i! E8/iit 1, plaintiaain, 7it/ t/" l"a#" o( o)rt, a*"n'"' it! o*plaint to *a;" it!all"ation! on(or* to t/" "#i'"n".

:"("n'ant, in /i! an!7"r, !"t! )p pr"!ription an' titl" in /i*!"l(t/r) Mop"n, ontin)o)!, "8l)!i#" an' p)li an' notorio)!po!!"!!ion A. L. R., 1>43,itin 2 $l"t/"r C. o( Corp., 1>2.= T/"r" i! not/in in t/" r"or'to in'iat" t/at t/" #"nt)r" in 7/i/ plainti i! r"pr"!"nt"'

Gr"orio Aran"ta, In. a! Mit! *anain partn"rM i! not in lin" 7it/


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t/" orporat" )!in"!! o( "it/"r o( t/"*.Error! II, III, an' I%, r"("rrin to t/" a'*i!!ion o( t/" t/ir' a*"n'"'o*plaint, *a " an!7"r"' *"r" r"("r"n" to !"tion 4 o( R)l"1?, R)l"! o( Co)rt, 7/i/ !antion! !)/ a*"n'*"nt. It r"a'!S". 4. A*"n'*"nt to on(or* to "#i'"n". /"n i!!)"! notrai!"' t/" pl"a'in! ar" tri"' "8pr"!! or i*pli"' on!"nt o(t/" parti"!, t/" !/all " tr"at"' in all r"!p"t!, a! i( t/" /a' ""nrai!"' in t/" pl"a'in!. S)/ a*"n'*"nt o( t/" pl"a'in! a! *a "n""!!ar to a)!" t/"* to on(or* to t/" "#i'"n" an' to rai!"t/"!" i!!)"! *a " *a'" )pon *otion o( an part at * ti*","#"n o( t/" trial o( t/"!" i!!)"!. I( "#i'"n" i! o"t"' to at t/" trialon t/" ro)n' t/at it i! not 7it/in t/" i!!)"! *a'" t/" pl"a'in!,t/" o)rt *a allo7 t/" pl"a'in! to " a*"n'"' an' !/all " !o(r""l 7/"n t/" pr"!"ntation o( t/" *"rit! o( t/" ation 7ill "!)!"r#"' t/"r" an' t/" o"tin part (ail! to !ati!( t/" o)rtt/at t/" a'*i!!ion o( !)/ "#i'"n" 7o)l' pr")'i" /i* in*aintainin /i! ation or '"("n!" )pon t/" *"rit!. T/" o)rt *arant a ontin)an" to "nal" t/" o"tin part to *""t !)/"#i'"n".&n'"r t/i! pro#i!ion a*"n'*"nt i! not "#"n n""!!ar (or t/"p)rpo!" o( r"n'"rin )'*"nt on i!!)"! pro#"' t/o)/ not all""'.T/)!, o**"ntin on t/" pro#i!ion, C/i"( J)!ti" 0oran !a! in t/i!R)l"! o( Co)rt&n'"r t/i! !"tion, A*"rian o)rt! /a#", )n'"r t/" N"7 $"'"ralR)l"! o( Ci#il ro"')r", r)l"' t/at 7/"r" t/" (at! !/o7n "ntitl"'plainti to r"li"( ot/"r t/an t/at a!;"' (or, no a*"n'*"nt to t/"o*plaint i! n""!!ar, "!p"iall 7/"r" '"("n'ant /a! /i*!"l(rai!"' t/" point on 7/i/ r"o#"r i! a!"', an' t/at t/" app"llat"o)rt tr"at t/" pl"a'in! a! a*"n'"' to on(or* to t/" "#i'"n",alt/o)/ t/" pl"a'in! 7"r" not at)all a*"n'"'.


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pr"*i!"! in B)"!tion D/a#" al7a! ""n !in" ti*" i**"*orial inop"n, ontin)o)!, "8l)!i#" an' p)li an' notorio)! po!!"!!ion an')n'"r lai* o( o7n"r!/ip a'#"r!" to t/" "ntir" 7orl' '"("n'antan' /i! pr"'""!!or! in int"r"!t.D T/i! a!!in*"nt o( "rror i! t/)!l"arl 7it/o)t *"rit.Error No. %III i! )t a on!"B)"n" o( t/" ot/"r "rror! all""' an'n""'! (or ()rt/"r on!i'"ration.:)rin t/" p"n'"n o( t/i! a!" in t/i! Co)rt app"llant, t/r) ot/"ro)n!"l, /a! l"' a *otion to 'i!*i!! all"in t/at t/"r" i! p"n'in"(or" t/" Co)rt o( $ir!t In!tan" o( Ri@al anot/"r ation "t7""n t/"!a*" parti"! an' (or t/" !a*" a)!" an' !"";in to !)!tain t/atall"ation 7it/ a op o( t/" o*plaint l"' in !ai' ation. +)t an"8a*ination o( t/at o*plaint r"#"al! t/at app"llantD! all"ation i!not orr"t, (or t/" pr"t"n'"' i'"ntit o( parti"! an' a)!" o( ationin t/" t7o !)it! 'o"! not app"ar. T/at ot/"r a!" i! on" (or r"o#"ro( o7n"r!/ip, 7/il" t/" pr"!"nt on" i! (or r"o#"r o( po!!"!!ion.An' 7/il" app"llant lai*! t/at /" i! al!o in#ol#"' in t/at or'"ration "a)!" it i! a la!! !)it, t/" o*plaint 'o"! not !/o7 t/at!)/ i! r"all t/" a!". On t/" ontrar, it app"ar! t/at t/" ation!"";! r"li"( (or "a/ in'i#i')al plainti an' not r"li"( (or an' on"/al( o( ot/"r!. T/" *otion (or 'i!*i!!al i! l"arl 7it/o)t *"rit./"r"(or", t/" )'*"nt app"al"' (ro* i! ar*"', 7it/ o!t!aain!t t/" plainti.

G.R. No. L-611 Oto"r 29, 195JOSE . O+ILLOS, JR., SARAH . O+ILLOS, RO0EO . O+ILLOS an'RE0E:IOS . O+ILLOS, rot/"r! an' !i!t"r!, p"tition"r!#!.CO00ISSIONER O$ INTERNAL RE%EN&E an' CO&RT O$ TA AEALS,r"!pon'"nt!.

:"*o!t/"n"! +. Ga'io*a (or p"tition"r!.AK&INO, J.T/i! a!" i! ao)t t/" ino*" ta8 liailit o( (o)r rot/"r! an' !i!t"r!7/o !ol' t7o par"l! o( lan' 7/i/ t/" /a' aB)ir"' (ro* t/"ir(at/"r.On 0ar/ 2, 19?3 Jo!" Oillo!, Sr. o*pl"t"' pa*"nt to Ortia! Co., Lt'. on t7o lot! 7it/ ar"a! o( 1,124 an' 963 !B)ar" *"t"r!loat"' at Gr""n/ill!, San J)an, Ri@al. T/" n"8t 'a /" tran!("rr"' /i!ri/t! to /i! (o)r /il'r"n, t/" p"tition"r!, to "nal" t/"* to )il't/"ir r"!i'"n"!. T/" o*pan !ol' t/" t7o lot! to p"tition"r! (or1?,?>.12 on 0ar/ 13 5> 1 a! orporat" ino*" ta8, 1,5>9 a! 5>Q (ra)'!)r/ar" an' 15,54?.56 a! 42Q a)*)lat"' int"r"!t, or a total o(?1,>?4.56.Not onl t/at. H" on!i'"r"' t/" !/ar" o( t/" prot! o( "a/p"tition"r in t/" !)* o( 33,54 a! a M ta8al" in ()ll


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lot! "a)!" o( t/" /i/ o!t o( on!tr)tion, t/"n t/" /a' no/oi" )t to r"!"ll t/" !a*" to 'i!!ol#" t/" o-o7n"r!/ip. T/"'i#i!ion o( t/" prot 7a! *"r"l ini'"ntal to t/" 'i!!ol)tion o( t/"o-o7n"r!/ip 7/i/ 7a! in t/" nat)r" o( t/in! a t"*porar !tat". It/a' to " t"r*inat"' !oon"r or lat"r. Ca!tan To"a! !a!Co*o "!tal""r "l '"!lin'" "ntr" la o*)ni'a' or'inaria oopropi"'a' la !oi"'a'El rit"rio 'i("r"nial-!")n la 'otrina *a! "n"rali@a'a-"!ta porra@on '"l ori"n, "n B)" la !oi"'a' pr"!)pon" n""!aria*"nt" laon#"nion, *"ntra! B)" la o*)ni'a' p)"'" "8i!tir "8i!t"or'inaria*"nt" !in "la por ra@on '"l n o"to, "n B)" "l o"to'" la !oi"'a' "! ot"n"r l)ro, *i"ntra! B)" "l '" la in'i#i!ion "!!olo *ant"n"r "n !) int"ri'a' la o!a o*)n (a#or""r !)on!"r#aion.R""o '" "!t" rit"rio "! la !"nt"nia '" 15 '" Ot)r" '" 194>, "nla B)" !" 'i" B)" !i "n n)"!tro :"r"/o po!iti#" !" o(r""n a #""!'i)lta'"! al tratar '" ar la lin"a 'i#i!oria "ntr" o*)ni'a' '"i"n"! ontrato '" !oi"'a', la *o'"rna ori"ntaion '" la 'otrinai"ntia !"ala o*o nota ()n'a*"ntal '" 'i("r"niaion apart" '"lori"n '" ()"nt" '" B)" !)r"n, no !i"*pr" )ni(or*", la nali'a'p"r!")i'a por lo! int"r"!a'o! l)ro o*)n partil" "n la !oi"'a', *"ra on!"r#aion apro#"/a*i"nto "n la o*)ni'a'. E'., 19?1, 32- 329=.Artil" 1?692 /il. 14>, 7/"r"t/" t/r"" E#an"li!ta !i!t"r! o)/t (o)r pi""! o( r"al prop"rt7/i/ t/" l"a!"' to #ario)! t"nant! an' '"ri#"' r"ntal! t/"r"(ro*.Cl"arl, t/" p"tition"r! in t/"!" t7o a!"! /a' (or*"' an)nr"i!t"r"' partn"r!/ip.In t/" in!tant a!", 7/at t/" Co**i!!ion"r !/o)l' /a#" in#"!tiat"'7a! 7/"t/"r t/" (at/"r 'onat"' t/" t7o lot! to t/" p"tition"r! an'7/"t/"r /" pai' t/" 'onorD! ta8


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E0ETERIA +ARING, p"tition"r!, #!. CO&RT O$ AEALS an' 0AN&ELTORRES,r"!pon'"nt!.: E C I S I O NANGANI+AN, J.Co)rt! *a not "8triat" parti"! (ro* t/" n""!!ar on!"B)"n"!o( t/"ir at!. T/at t/" t"r*! o( a ontrat t)rn o)t to " naniall'i!a'#anta"o)! to t/"* 7ill not r"li"#" t/"* o( t/"ir oliation!t/"r"in. T/" la; o( an in#"ntor o( r"al prop"rt 7ill not ip!o (ator"l"a!" t/" ontratin partn"r! (ro* t/"ir r"!p"ti#" oliation! to"a/ ot/"r ari!in (ro* at! "8")t"' in aor'an" 7it/ t/"irar""*"nt.T/" Ca!"T/" "tition (or R"#i"7 on C"rtiorari "(or" )! a!!ail! t/" 0ar/ 5,199 :"i!ionV1WS"on' :i#i!ion o( t/" Co)rt o( App"al!V2W>>.R"!pon'"nt lai*"' t/at t/" !)'i#i!ion pro"t (ail"', /o7"#"r,"a)!" p"tition"r! an' t/"ir r"lati#"! /a' !"parat"l a)!"' t/"annotation! o( a'#"r!" lai*! on t/" titl" to t/" lan', 7/i/"#"nt)all !ar"' a7a pro!p"ti#" )"r!. :"!pit" /i! r"B)"!t!,p"tition"r! r"()!"' to a)!" t/" l"arin o( t/" lai*!, t/"r"(orin /i* to i#" )p on t/" pro"t.V5WS)!"B)"ntl, p"tition"r! l"' a ri*inal a!" (or "!ta(a aain!tr"!pon'"nt an' /i! 7i(", 7/o 7"r" /o7"#"r aB)itt"'. T/"r"a(t"r,t/" l"' t/" pr"!"nt i#il a!" 7/i/, )pon r"!pon'"ntD! *otion,7a! lat"r 'i!*i!!"' t/" trial o)rt in an Or'"r 'at"' S"pt"*"r 6,192. On app"al, /o7"#"r, t/" app"llat" o)rt r"*an'"' t/" a!"(or ()rt/"r pro""'in!. T/"r"a(t"r, t/" RTC i!!)"' it! a!!ail"':"i!ion, 7/i/, a! "arli"r !tat"', 7a! ar*"' t/" CA.H"n", t/i! "tition.V6WR)lin o( t/" Co)rt o( App"al!In ar*in t/" trial o)rt, t/" Co)rt o( App"al! /"l' t/at p"tition"r!an' r"!pon'"nt /a' (or*"' a partn"r!/ip (or t/" '"#"lop*"nt o( t/"!)'i#i!ion. T/)!, t/" *)!t "ar t/" lo!! !)"r"' t/"partn"r!/ip in t/" !a*" proportion a! t/"ir !/ar" in t/" prot!!tip)lat"' in t/" ontrat. :i!ar""in 7it/ t/" trial o)rt!prono)n"*"nt t/at lo!!"! a! 7"ll a! prot! in a oint #"nt)r" !/o)l'" 'i!tri)t"' "B)all,V?W t/" CA in#o;"' Artil" 1?9? o( t/" Ci#ilCo'" 7/i/ pro#i'"!Artil" 1?9? - T/" lo!!"! an' prot! !/all " 'i!tri)t"' inon(or*it 7it/ t/" ar""*"nt. I( onl t/" !/ar" o( "a/ partn"r int/" prot! /a! ""n ar""' )pon, t/" !/ar" o( "a/ in t/" lo!!"!!/all " in t/" !a*" proportion.T/" CA "l)i'at"' ()rt/"rIn t/" a!"n" o( !tip)lation, t/" !/ar" o( "a/ partn"r in t/" prot!an' lo!!"! !/all " in proportion to 7/at /" *a /a#" ontri)t"',)t t/" in')!trial partn"r !/all not " lial" (or t/" lo!!"!. A! (or t/"prot!, t/" in')!trial partn"r !/all r""i#" !)/ !/ar" a! *a " )!tan' "B)ital" )n'"r t/" ir)*!tan"!. I( "!i'"! /i! !"r#i"! /" /a!ontri)t"' apital, /" !/all al!o r""i#" a !/ar" in t/" prot! inproportion to /i! apital.T/" I!!)""tition"r! i*p)t" to t/" Co)rt o( App"al! t/" (ollo7in "rror8 8 8 VT/"W Co)rt o( App"al! "rr"' in onl)'in t/at t/" tran!ation8 8 8 "t7""n t/" p"tition"r! an' r"!pon'"nt 7a! t/at o( a oint

#"nt)r"partn"r!/ip, inorin o)tri/t t/" pro#i!ion o( Artil" 1?69,
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an' ot/"r r"lat"' pro#i!ion! o( t/" Ci#il Co'" o( t/" /ilippin"!.VWT/" Co)rt! R)linT/" "tition i! "r"(t o( *"rit.0ain I!!)" E8i!t"n" o( a artn"r!/ip"tition"r! '"n /a#in (or*"' a partn"r!/ip 7it/ r"!pon'"nt. T/"ont"n' t/at t/" Joint %"nt)r" Ar""*"nt an' t/" "arli"r :""' o(Sal", ot/ o( 7/i/ 7"r" t/" a!"! o( t/" app"llat" o)rt! n'in o(a partn"r!/ip, 7"r" #oi'.

In t/" !a*" r"at/, /o7"#"r, t/" a!!"rt t/at )n'"r t/o!" #"r!a*" ontrat!, r"!pon'"nt i! lial" (or /i! (ail)r" to i*pl"*"nt t/"pro"t. +"a)!" t/" ar""*"nt "ntitl"' t/"* to r""i#" 6> p"r"nto( t/" pro""'! (ro* t/" !al" o( t/" !)'i#i!ion lot!, t/" pra t/atr"!pon'"nt pa t/"* 'a*a"! "B)i#al"nt to 6> p"r"nt o( t/" #al)"o( t/" prop"rt.V9WT/" p"rtin"nt portion! o( t/" Joint %"nt)r" Ar""*"nt r"a' a!(ollo7!FNO ALL 0EN + THESE RESENTST/i! AGREE0ENT, i! *a'" an' "nt"r"' into at C") Cit, /ilippin"!,t/i! 5t/ 'a o( 0ar/, 1969, an' "t7""n 0R. 0AN&EL R.TORRES, 8 8 8 t/" $IRST ART, li;"7i!", 0RS. ANTONIA +. TORRES,an' 0ISS E0ETERIA +ARING, 8 8 8 t/" SECON: ART I T N E S S E T HT/at, 7/"r"a!, t/" SECON: ART, #ol)ntaril o"r"' t/" $IRSTART, t/i! prop"rt loat"' at Lap)-Lap) Cit, I!lan' o( 0atan,)n'"r Lot No. 136 o#"rin TCT No. T->14 7it/ a total ar"a o(1?,>>9 !B)ar" *"t"r!, to " !)-'i#i'"' t/" $IRST ART/"r"a!, t/" $IRST ART /a' i#"n t/" SECON: ART, t/" !)* o(TENT THO&SAN: ,>>>.>>= "!o!, /ilippin" C)rr"n, )pont/" "8")tion o( t/i! ontrat (or t/" prop"rt "ntr)!t"' t/"SECON: ART, (or !)-'i#i!ion pro"t! an' '"#"lop*"nt p)rpo!"!NO THERE$ORE, (or an' in on!i'"ration o( t/" ao#" o#"nant!an' pro*i!"! /"r"in ontain"' t/" r"!p"ti#" parti"! /"r"to 'o/"r" !tip)lat" an' ar"" a! (ollo7!ONE T/at t/" SECON: ART !in"' an a!ol)t" :""' o( Sal" 8 8 8'at"' 0ar/ 5, 1969, in t/" a*o)nt o( TENT $I%E THO&SAN:$I%E H&N:RE: THIRTEEN $I$T CT%S. = /ilippin"C)rr"n, (or 1,?>> !B)ar" *"t"r! at ONE VESOW $I$T CT%S.= /ilippin" C)rr"n, in (a#or o( t/" $IRST ART, )t t/"SECON: ART 'i' not at)all r""i#" t/" pa*"nt.SECON: T/at t/" SECON: ART, /a' r""i#"' (ro* t/" $IRSTART, t/" n""!!ar a*o)nt o( TENT THO&SAN: ,>>>.>>=p"!o!, /ilippin" )rr"n, (or t/"ir p"r!onal oliation! an' t/i!parti)lar a*o)nt 7ill !"r#" a! an a'#an" pa*"nt (ro* t/" $IRSTART (or t/" prop"rt *"ntion"' to " !)-'i#i'"' an' to "

'"')t"' (ro* t/" !al"!.THIR: T/at t/" $IRST ART, 7ill not oll"t (ro* t/" SECON:ART, t/" int"r"!t an' t/" prinipal a*o)nt in#ol#in t/" a*o)nt o(TENT THO&SAN: ,>>>.>>= "!o!, /ilippin" C)rr"n, )ntilt/" !)-'i#i!ion pro"t i! t"r*inat"' an' r"a' (or !al" to anint"r"!t"' parti"!, an' t/" a*o)nt o( TENT THO&SAN:,>>>.>>= p"!o!, /ilippin" )rr"n, 7ill " '"')t"'aor'inl.

$O&RTH T/at all "n"ral "8p"n!"V!W an' all o!tV!W in#ol#"' in t/"!)-'i#i!ion pro"t !/o)l' " pai' t/" $IRST ART, "8l)!i#"lan' all t/" "8p"n!"! 7ill not " '"')t"' (ro* t/" !al"! a(t"r t/"'"#"lop*"nt o( t/" !)-'i#i!ion pro"t.$I$TH T/at t/" !al"! o( t/" !)-'i#i'"' lot! 7ill " 'i#i'"' intoSIT ERCENT&0 6>Q (or t/" SECON: ART an' $ORTERCENT&0 4>Q (or t/" $IRST ART, an' a''itional prot! or7/at"#"r ino*" '"ri#in (ro* t/" !al"! 7ill " 'i#i'"' "B)allaor'in to t/" 8 8 8 p"r"nta" Var""' )ponW ot/ parti"!.SITH T/at t/" int"n'"' !)-'i#i!ion pro"t o( t/" prop"rtin#ol#"' 7ill !tart t/" 7or; an' all i*pro#"*"nt! )pon t/" a'a"ntlot! 7ill " n"otiat"' in ot/ parti"!VDW (a#or an' all !al"! !/all V"W'"i'"' ot/ parti"!.SE%ENTH T/at t/" SECON: ARTIES, !/o)l' " i#"n an option to"t a; t/" prop"rt *"ntion"' pro#i'"' t/" a*o)nt o( TENTTHO&SAN: ,>>>.>>= "!o!, /ilippin" C)rr"n, orro7"' t/"SECON: ART, 7ill " pai' in ()ll to t/" $IRST ART, inl)'in alln""!!ar i*pro#"*"nt! !p"nt t/" $IRST ART, an' t/" $IRSTART 7ill " i#"n a ra" p"rio' to t)rno#"r t/" prop"rt*"ntion"' ao#".T/at t/i! AGREE0ENT !/all " in'in an' oliator to t/" parti"!7/o "8")t"' !a*" (r""l an' #ol)ntaril (or t/" )!"! an' p)rpo!"!t/"r"in !tat"'.V1>WA r"a'in o( t/" t"r*! "*o'i"' in t/" Ar""*"nt in')ital!/o7! t/" "8i!t"n" o( a partn"r!/ip p)r!)ant to Artil" 1?6? o( t/"Ci#il Co'", 7/i/ pro#i'"!ART. 1?6?. + t/" ontrat o( partn"r!/ip t7o or *or" p"r!on! in't/"*!"l#"! to ontri)t" *on", prop"rt, or in')!tr to a o**on()n', 7it/ t/" int"ntion o( 'i#i'in t/" prot! a*on t/"*!"l#"!.&n'"r t/" ao#"-B)ot"' Ar""*"nt, p"tition"r! 7o)l' ontri)t"prop"rt to t/" partn"r!/ip in t/" (or* o( lan' 7/i/ 7a! to "'"#"lop"' into a !)'i#i!ion 7/il" r"!pon'"nt 7o)l' i#", ina''ition to /i! in')!tr, t/" a*o)nt n""'"' (or "n"ral "8p"n!"!an' ot/"r o!t!. $)rt/"r*or", t/" ino*" (ro* t/" !ai' pro"t7o)l' " 'i#i'"' aor'in to t/" !tip)lat"' p"r"nta". Cl"arl, t/"ontrat *ani("!t"' t/" int"ntion o( t/" parti"! to (or* a
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partn"r!/ip.V11WIt !/o)l' " !tr"!!"' t/at t/" parti"! i*pl"*"nt"' t/" ontrat.T/)!, p"tition"r! tran!("rr"' t/" titl" to t/" lan' to (ailitat" it! )!"in t/" na*" o( t/" r"!pon'"nt. On t/" ot/"r /an', r"!pon'"nta)!"' t/" !)"t lan' to " *orta"', t/" pro""'! o( 7/i/7"r" )!"' (or t/" !)r#" an' t/" !)'i#i!ion o( t/" lan'. A! not"'"arli"r, /" '"#"lop"' t/" roa'!, t/" )r! an' t/" )tt"r! o( t/"!)'i#i!ion an' "nt"r"' into a ontrat to on!tr)t lo7-o!t /o)!in

)nit! on t/" prop"rt.R"!pon'"nt! ation! l"arl "li" p"tition"r! ont"ntion t/at /"*a'" no ontri)tion to t/" partn"r!/ip. &n'"r Artil" 1?6? o( t/"Ci#il Co'", a partn"r *a ontri)t" not onl *on" or prop"rt, )tal!o in')!tr."tition"r! +o)n' T"r*! o( Contrat&n'"r Artil" 1315 o( t/" Ci#il Co'", ontrat! in' t/" parti"! notonl to 7/at /a! ""n "8pr"!!l !tip)lat"', )t al!o to all n""!!aron!"B)"n"! t/"r"o(, a! (ollo7!ART. 1315. Contrat! ar" p"r("t"' *"r" on!"nt, an' (ro* t/at*o*"nt t/" parti"! ar" o)n' not onl to t/" ()lll*"nt o( 7/at /a!""n "8pr"!!l !tip)lat"' )t al!o to all t/" on!"B)"n"! 7/i/,aor'in to t/"ir nat)r", *a " in ;""pin 7it/ oo' (ait/, )!a"an' la7.It i! )n'i!p)t"' t/at p"tition"r! ar" "')at"' an' ar" t/)! pr"!)*"'to /a#" )n'"r!too' t/" t"r*! o( t/" ontrat t/" #ol)ntaril !in"'.I( it 7a! not in on!onan" 7it/ t/"ir "8p"tation!, t/" !/o)l' /a#"o"t"' to it an' in!i!t"' on t/" pro#i!ion! t/" 7ant"'.Co)rt! ar" not a)t/ori@"' to "8triat" parti"! (ro* t/" n""!!aron!"B)"n"! o( t/"ir at!, an' t/" (at t/at t/" ontrat)al!tip)lation! *a t)rn o)t to " naniall 'i!a'#anta"o)! 7ill notr"li"#" parti"! t/"r"to o( t/"ir oliation!. T/" annot no7 'i!a#o7t/" r"lation!/ip (or*"' (ro* !)/ ar""*"nt ')" to t/"ir !)ppo!"'*i!)n'"r!tan'in o( it! t"r*!.All""' N)llit o( t/" artn"r!/ip Ar""*"nt"tition"r! ar)" t/at t/" Joint %"nt)r" Ar""*"nt i! #oi' )n'"rArtil" 1??3 o( t/" Ci#il Co'", 7/i/ pro#i'"!ART. 1??3. A ontrat o( partn"r!/ip i! #oi', 7/"n"#"r i**o#al"prop"rt i! ontri)t"' t/"r"to, i( an in#"ntor o( !ai' prop"rt i! not*a'", !in"' t/" parti"!, an' atta/"' to t/" p)li in!tr)*"nt.T/" ont"n' t/at !in" t/" parti"! 'i' not *a;", !in or atta/ tot/" p)li in!tr)*"nt an in#"ntor o( t/" r"al prop"rt ontri)t"',t/" partn"r!/ip i! #oi'." lari(. $ir!t, Artil" 1??3 7a! int"n'"' pri*aril to prot"t t/ir'p"r!on!. T/)!, t/" "*in"nt Art)ro 0. Tol"ntino !tat"! t/at )n'"r t/"a(or"it"' pro#i!ion 7/i/ i! a o*pl"*"nt o( Artil" 1??1,V12Wt/"

"8")tion o( a p)li in!tr)*"nt 7o)l' " )!"l"!! i( t/"r" i! noin#"ntor o( t/" prop"rt ontri)t"', "a)!" 7it/o)t it!'"!ination an' '"!ription, t/" annot " !)"t to in!ription int/" R"i!tr o( rop"rt, an' t/"ir ontri)tion annot pr")'i" t/ir'p"r!on!. T/i! 7ill r"!)lt in (ra)' to t/o!" 7/o ontrat 7it/ t/"partn"r!/ip in t/" "li"( VinW t/" "a o( t/" )arant in 7/i/ t/"i**o#al"! *a on!i!t. T/)!, t/" ontrat i! '"lar"' #oi' t/"la7 7/"n no !)/ in#"ntor i! *a'". T/" a!" at ar 'o"! not

in#ol#" t/ir' parti"! 7/o *a " pr")'i"'.S"on', p"tition"r! t/"*!"l#"! in#o;" t/" all""'l #oi' ontrat a!a!i! (or t/"ir lai* t/at r"!pon'"nt !/o)l' pa t/"* 6> p"r"nt o(t/" #al)" o( t/" prop"rt.V13WT/" annot in on" r"at/ '"n t/"ontrat an' in anot/"r r"oni@" it, '"p"n'in on 7/at*o*"ntaril !)it! t/"ir p)rpo!". arti"! annot a'opt inon!i!t"ntpo!ition! in r"ar' to a ontrat an' o)rt! 7ill not tol"rat", *)/l"!! appro#", !)/ prati".In !/ort, t/" all""' n)llit o( t/" partn"r!/ip 7ill not pr"#"nt o)rt!(ro* on!i'"rin t/" Joint %"nt)r" Ar""*"nt an or'inar ontrat(ro* 7/i/ t/" parti"! ri/t! an' oliation! to "a/ ot/"r *a "in("rr"' an' "n(or"'.artn"r!/ip Ar""*"nt Not t/" R"!)lt o( an Earli"r Ill"al Contrat"tition"r! al!o ont"n' t/at t/" Joint %"nt)r" Ar""*"nt i! #oi')n'"r Artil" 1422V14Wo( t/" Ci#il Co'", "a)!" it i! t/" 'ir"tr"!)lt o( an "arli"r ill"al ontrat, 7/i/ 7a! (or t/" !al" o( t/" lan'7it/o)t #ali' on!i'"ration.T/i! ar)*"nt i! p)"ril". T/" Joint %"nt)r" Ar""*"nt l"arl !tat"!t/at t/" on!i'"ration (or t/" !al" 7a! t/" "8p"tation o( prot!(ro* t/" !)'i#i!ion pro"t. It! r!t !tip)lation !tat"! t/atp"tition"r! 'i' not at)all r""i#" pa*"nt (or t/" par"l o( lan'!ol' to r"!pon'"nt. Con!i'"ration, *or" prop"rl '"no*inat"' a!a)!", an ta;" 'i"r"nt (or*!, !)/ a! t/" pr"!tation or pro*i!" o(a t/in or !"r#i" anot/"r.V15WIn t/i! a!", t/" a)!" o( t/" ontrat o( !al" on!i!t"' not in t/"!tat"' p"!o #al)" o( t/" lan', )t in t/" "8p"tation o( prot! (ro*t/" !)'i#i!ion pro"t, (or 7/i/ t/" lan' 7a! int"n'"' to " )!"'.A! "8plain"' t/" trial o)rt, t/" lan' 7a! in ""t i#"n to t/"partn"r!/ip a! Vp"tition"r!W partiipation t/"r"in. 8 8 8 T/"r" 7a!t/"r"(or" a on!i'"ration (or t/" !al", t/" Vp"tition"r!W atin in t/""8p"tation t/at, !/o)l' t/" #"nt)r" o*" into (r)ition, t/" V7o)l'W"t !i8t p"r"nt o( t/" n"t prot!.Liailit o( t/" arti"!Clai*in t/at r"!pon'"nt 7a! !ol"l r"!pon!il" (or t/" (ail)r" o( t/"!)'i#i!ion pro"t, p"tition"r! *aintain t/at /" !/o)l' " *a'" topa 'a*a"! "B)i#al"nt to 6> p"r"nt o( t/" #al)" o( t/" prop"rt,
http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn11http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn12http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn13http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn14http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn15http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn11http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn12http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn13http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn14http://sc.judiciary.gov.ph/jurisprudence/1999/dec99/134559.htm#_edn15


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7/i/ 7a! t/"ir !/ar" in t/" prot! )n'"r t/" Joint %"nt)r"Ar""*"nt." ar" not p"r!)a'"'. Tr)", t/" Co)rt o( App"al! /"l' t/atp"tition"r! at! 7"r" not t/" a)!" o( t/" (ail)r" o( t/" pro"t.V16W+)t it al!o r)l"' t/at n"it/"r 7a! r"!pon'"nt r"!pon!il" t/"r"(or.V1?WIn i*p)tin t/" la*" !ol"l to /i*, p"tition"r! (ail"' to i#"an r"a!on 7/ 7" !/o)l' 'i!r"ar' t/" (at)al n'in! o( t/"app"llat" o)rt r"li"#in /i* o( (a)lt. %"ril, (at)al i!!)"! annot "

r"!ol#"' in a p"tition (or r"#i"7 )n'"r R)l" 45, a! in t/i! a!"."tition"r! /a#" not all""', not to !a !/o7n, t/at t/"ir "titionon!tit)t"! on" o( t/" "8"ption! to t/i! 'otrin".V1WAor'inl,7" n' no r"#"r!il" "rror in t/" CAD! r)lin t/at p"tition"r! ar" not"ntitl"' to 'a*a"!.HERE$ORE, t/" "tition i! /"r" :ENIE: an' t/" /all"n"':"i!ion A$$IR0E:. Co!t! aain!t p"tition"r!.SO OR:ERE:.

0ARJORIE TOCAO an' ILLIA0 T. +ELO, p"tition"r!, #!. CO&RT O$AEALS an' NENITA A. ANA, r"!pon'"nt!.: E C I S I O NNARES-SANTIAGO, J.T/i! i! a p"tition (or r"#i"7 o( t/" :"i!ion o( t/" Co)rt o( App"al! inCA-G.R. C% No. 41616,V1War*in t/" :"i!ion o( t/" R"ional TrialCo)rt o( 0a;ati, +ran/ 14>, in Ci#il Ca!" No. -5>9.V2W$r"!/ (ro* /"r !tint a! *ar;"tin a'#i!"r o( T"/nol)8 in +an;o;,T/ailan', pri#at" r"!pon'"nt N"nita A. Ana *"t p"tition"r illia* T.+"lo, t/"n t/" #i"-pr"!i'"nt (or op"ration! o( &ltra Cl"an at"r)ri"r, t/ro)/ /"r (or*"r "*plo"r in +an;o;. +"lo intro')"'Ana to p"tition"r 0arori" Toao, 7/o on#""' /"r '"!ir" to "nt"rinto a oint #"nt)r" 7it/ /"r (or t/" i*portation an' loal 'i!tri)tiono( ;it/"n oo;7ar"!. +"lo #ol)nt""r"' to nan" t/" oint #"nt)r"an' a!!in"' to Ana t/" o o( *ar;"tin t/" pro')t on!i'"rin/"r "8p"ri"n" an' "!tali!/"' r"lation!/ip 7it/ "!t +"n'Co*pan, a *an)(at)r"r o( ;it/"n 7ar"! in i!on!in, &.S.A.&n'"r t/" oint #"nt)r", +"lo at"' a! apitali!t, Toao a! pr"!i'"ntan' "n"ral *ana"r, an' Ana a! /"a' o( t/" *ar;"tin'"part*"nt an' lat"r, #i"-pr"!i'"nt (or !al"!. Ana orani@"' t/"a'*ini!trati#" !ta an' !al"! (or" 7/il" Toao /ir"' an' r"'"*plo""!, '"t"r*in"' o**i!!ion! an'or !alari"! o( t/""*plo""!, an' a!!in"' t/"* to 'i"r"nt ran/"!. T/" parti"!ar""' t/at +"lo! na*" !/o)l' not app"ar in an 'o)*"nt! r"latin

to t/"ir tran!ation! 7it/ "!t +"n' Co*pan. In!t"a', t/" ar""'

to )!" Ana! na*" in !")rin 'i!tri)tor!/ip o( oo;7ar" (ro* t/ato*pan. T/" parti"! ar""' ()rt/"r t/at Ana 7o)l' " "ntitl"' to= "ar! no7, aB)ir"' t/"'i!tri)tor!/ip o( Roal K)""n oo;7ar" (or G"*in"!!" Ent"rpri!", i!t/" %i" r"!i'"nt Sal"! 0ar;"tin an' a )!in"!! partn"r o( o)ro*pan, 7ill att"n' in r"!pon!" to t/" in#itation.


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arr"' /"r (ro* /ol'in o" an' on')tin '"*on!tration! inot/ 0a;ati an' C)ao o"!.V?WAna att"*pt"' to ontat +"lo.S/" 7rot" /i* t7i" to '"*an' /"r o#"rri'in o**i!!ion (or t/"p"rio' o( Jan)ar , 19 to $"r)ar 5, 19 an' t/" a)'it o( t/"o*pan to '"t"r*in" /"r !/ar" in t/" n"t prot!. /"n /"r l"tt"r!7"r" not an!7"r"', Ana on!)lt"' /"r la7"r, 7/o, in t)rn, 7rot"+"lo a l"tt"r. Still, t/at l"tt"r 7a! not an!7"r"'.Ana !till r""i#"' /"r #" p"r"nt >,36>.>>.On April 5, 19, N"nita A. Ana l"' Ci#il Ca!" No. -5>9, ao*plaint (or !)* o( *on" 7it/ 'a*a"!VWaain!t 0arori" :.Toao an' illia* +"lo "(or" t/" R"ional Trial Co)rt o( 0a;ati,+ran/ 14>.In /"r o*plaint, Ana pra"' t/at '"("n'ant! " or'"r"' to pa/"r, ointl an' !"#"rall, t/" (ollo7in >.>> a! )npai'o#"rri'in o**i!!ion (ro* Jan)ar , 19 to $"r)ar 5, 19 >,>>>.>> a! *oral 'a*a"!, an' >,>>>.>> a! "8"*plar'a*a"!. T/" plainti al!o pra"' (or an a)'it o( t/" nan"! o(

G"*in"!!" Ent"rpri!" (ro* t/" in"ption o( it! )!in"!! op"ration)ntil !/" 7a! ill"all 'i!*i!!"' to '"t"r*in" /"r t"n p"r"nt Q=!/ar" in t/" n"t prot!. S/" ()rt/"r pra"' t/at !/" " pai' t/" #"p"r"nt >,>>>.>>. T/" al!o all""' t/at, to #in'iat" t/"ir na*"!, t/"/a' to /ir" o)n!"l (or a ("" o( 23,>>>.>>.At t/" pr"-trial on("r"n", t/" i!!)"! 7"r" li*it"' to 9 o( t/" Ci#il Co'" in or'"r to '"t"r*in" t/" t"n p"r"nt Q=!/ar" o( plainti in t/" n"t prot! o( t/" oo;7ar" )!in"!!2. Or'"rin '"("n'ant! to pa #" p"r"nt


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$"r)ar 5, 19 a*o)nt"' to 32,>>>.>>4. Or'"rin '"("n'ant! to pa 1>>,>>>.>> a! *oral 'a*a"! an'1>>,>>>.>> a! "8"*plar 'a*a"!, an'5. Or'"rin '"("n'ant! to pa 5>,>>>.>> a! attorn"! (""! an'2>,>>>.>> a! o!t! o( !)it.SO OR:ERE:.T/" trial o)rt /"l' t/at t/"r" 7a! in'""' an oral partn"r!/ipar""*"nt "t7""n t/" plainti an' t/" '"("n'ant!, a!"' on t/"

(ollo7in >,>>>.>> 7it/ p"tition"r Toao ontri)tin not/in, 7it/o)tan *"*oran')* 7/at!o"#"r r"ar'in t/" all""' partn"r!/ip.V13WT/" i!!)" o( 7/"t/"r or not a partn"r!/ip "8i!t! i! a (at)al *att"r7/i/ ar" 7it/in t/" "8l)!i#" 'o*ain o( ot/ t/" trial an' app"llat"

o)rt!. T/i! Co)rt annot !"t a!i'" (at)al n'in! o( !)/ o)rt!a!"nt an !/o7in t/at t/"r" i! no "#i'"n" to !)pport t/"onl)!ion 'ra7n t/" o)rt a B)o.V14WIn t/i! a!", ot/ t/" trialo)rt an' t/" Co)rt o( App"al! ar" on" in r)lin t/at p"tition"r! an'pri#at" r"!pon'"nt "!tali!/"' a )!in"!! partn"r!/ip. T/i! Co)rtn'! no r"a!on to r)l" ot/"r7i!".To " on!i'"r"' a )ri'ial p"r!onalit, a partn"r!/ip *)!t ()lllt/"!" r"B)i!it"!


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o*pl 7it/ t/" r"B)ir"*"nt! o( artil" 1??2, r!t pararap/."tition"r! a'*it t/at pri#at" r"!pon'"nt /a' t/" "8p"rti!" to"na" in t/" )!in"!! o( 'i!tri)tor!/ip o( oo;7ar". ri#at"r"!pon'"nt ontri)t"' !)/ "8p"rti!" to t/" partn"r!/ip an' /"n",)n'"r t/" la7, !/" 7a! t/" in')!trial or *anain partn"r. It 7a!t/ro)/ /"r r"p)tation 7it/ t/" "!t +"n' Co*pan t/at t/"partn"r!/ip 7a! al" to op"n t/" )!in"!! o( 'i!tri)tor!/ip o( t/ato*pan! oo;7ar" pro')t! it 7a! t/ro)/ t/" !a*" "ort! t/at

t/" )!in"!! 7a! prop"ll"' to nanial !)"!!. "tition"r Toao/"r!"l( a'*itt"' pri#at" r"!pon'"nt! in'i!p"n!al" rol" in p)ttin )pt/" )!in"!! 7/"n, )pon "in a!;"' i( pri#at" r"!pon'"nt /"l' t/"po!ition! o( *ar;"tin *ana"r an' #i"-pr"!i'"nt (or !al"!, !/"t"!ti"' t/)!A No, !ir at t/" !tart !/" 7a! t/" *ar;"tin *ana"r "a)!" t/"r"7"r" no on" to !"ll "t, it! onl *" t/"r" t/"n /"r an' t/"n t7o 3, t/" Stat)t" o( $ra)'!,r"B)ir"! t/at a !p"ial pro*i!" to an!7"r (or t/" '"t, '"(a)lt or*i!arria" o( anot/"r " in 7ritin.V21W"tition"r Toao, a (or*"r ra*p *o'"l,V22W7a! al!o a apitali!t int/" partn"r!/ip. S/" lai*"' t/at !/" /"r!"l( nan"' t/" )!in"!!.H"r an' p"tition"r +"lo! rol"! a! ot/ apitali!t! to t/" partn"r!/ip7it/ pri#at" r"!pon'"nt ar" )ttr"!!"' p"tition"r Toao!a'*i!!ion! t/at p"tition"r +"lo 7a! /"r o(ri"n' an' t/at t/"

partn"r!/ip 7a! not t/"ir onl )!in"!! #"nt)r" to"t/"r. T/" al!o"!tali!/"' a r* t/at t/" all"' ii, t/" o*ination o( p"tition"r+"lo! r!t na*", illia*, an' /"r ni;na*", Jii.V23WT/" !p"ialr"lation!/ip "t7""n t/"* 'o#"tail! 7it/ p"tition"r +"lo! lai* t/at/" 7a! atin in "/al( o( p"tition"r Toao. Siniantl, in t/" "arl!ta" o( t/" )!in"!! op"ration, p"tition"r! r"B)"!t"' "!t +"n'Co*pan to allo7 t/"* to )tili@" t/"ir an;in an' tra'in (ailiti"!in Sinapor" in t/" *att"r o( i*portation an' pa*"nt o( t/"oo;7ar" pro')t!.V24W T/" in"#ital" onl)!ion, t/"r"(or", 7a!t/at p"tition"r! *"r"' t/"ir r"!p"ti#" apital an' in()!"' t/"a*o)nt into t/" partn"r!/ip o( 'i!tri)tin oo;7ar" 7it/ pri#at"r"!pon'"nt a! t/" *anain partn"r.

T/" )!in"!! #"nt)r" op"rat"' )n'"r G"*in"!!" Ent"rpri!" 'i' notr"!)lt in an "*plo"r-"*plo"" r"lation!/ip "t7""n p"tition"r! an'pri#at" r"!pon'"nt. /il" it i! tr)" t/at t/" r""ipt o( a p"r"nta"o( n"t prot! on!tit)t"! onl pri*a (ai" "#i'"n" t/at t/" r"ipi"nti! a partn"r in t/" )!in"!!,V25Wt/" "#i'"n" in t/" a!" at arontro#"rt! an "*plo"r-"*plo"" r"lation!/ip "t7""n t/" parti"!.In t/" r!t pla", pri#at" r"!pon'"nt /a' a #oi" in t/" *ana"*"nto( t/" aair! o( t/" oo;7ar" 'i!tri)tor!/ip,V26Winl)'in !"l"tiono( p"opl" 7/o 7o)l' on!tit)t" t/" a'*ini!trati#" !ta an' t/" !al"!(or". S"on'l, p"tition"r Toao! a'*i!!ion! *ilitat" aain!t an"*plo"r-"*plo"" r"lation!/ip. S/" a'*itt"' t/at, li;" /"r 7/oo7n"' G"*in"!!" Ent"rpri!",V2?Wpri#at" r"!pon'"nt r""i#"' onlo**i!!ion! an' tran!portation an' r"pr"!"ntation allo7an"!V2Wan' not a 8"' !alar.V29W"tition"r Toao t"!ti"'K O( o)r!". No7, I a* !/o7in to o) "rtain 'o)*"nt! alr"a'*ar;"' a! E8/!. an' . l"a!" o o#"r t/i!. E8/. i! '"no*inat"'PC)ao o#"rri'"! -21-? 7it/ "n'in A))!t 21, 19?, 7ill o)pl"a!" o o#"r t/i! an' t"ll t/" Honoral" Co)rt 7/"t/"r o) "#"ra*" aro!! t/i! 'o)*"nt an' ;no7 o( o)r o7n ;no7l"'" t/"a*o)nt ---A "!, !ir t/i! i! 7/at I a* tal;in ao)t "arli"r. T/at! t/" on" I a*t"llin o) "arli"r a "rtain p"r"nta" (or pro*otion!, a'#"rti!in,in"nti#".K I !"". No7, t/i! pro*otion, a'#"rti!in, in"nti#", t/"r" i! a )r"
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/"r" an' 7or'! 7/i/ I B)ot" O#"rri'"! 0arori" Ann Toao21,41>.5> t/i! *"an! t/at o) /a#" r""i#"' t/i! a*o)ntA O/ "!, !ir.K I !"". An', 7a o( a*pliation t/i! i! 7/at o) ar" !ain a!on" r"pr"!"ntin o**i!!ion, r"pr"!"ntation, a'#"rti!in an'pro*otionA "!, !ir.K I !"". +"lo7 o)r na*" i! t/" 7or'! an' )r" an' I B)ot" Nita :.

Ana 21,41>.5>, 7/at i! t/i!A T/at! /"r o#"rri'in o**i!!ion.K O#"rri'in o**i!!ion, I !"". O( o)r!", o) ar" t"llin t/i!Honoral" Co)rt t/at t/"r" "in t/" !a*" 21,41>.5> i! *"r"l oini'"n"A No, !ir, I *a'" it a point t/at 7" 7"r" "B)al "a)!" t/" 7a Iloo; at /"r ;a!i, o) ;no7 in a !"n!" "a)!" o( /"r "8p"rti!" in t/")!in"!! !/" i! #ital to * )!in"!!. So, a! part o( t/" in"nti#" Io"r /"r t/" !a*" t/in.K So, in !/ort o) ar" !ain t/at t/i! o) /a#" !/ar"' to"t/"r, I*"an /a#in ott"n (ro* t/" o*pan 21,14>.5> i! o)r 7a o(in'iatin t/at o) 7"r" tr"atin /"r a! an "B)al

A A! an "B)al.K A! an "B)al, I !"". o) 7"r" tr"atin /"r a! an "B)alA "!, !ir.K I a* allin aain o)r att"ntion to E8/. O#"rri'"! 0a;ati t/"ot/"r on" i! ---A T/at i! t/" !a*" t/in, !ir.K it/ "n'in A))!t 21, 7or'! an' )r" O#"rri'"! 0arori" AnnToao 15,314.25 t/" a*o)nt t/"r" o) 7ill a;no7l"'" o) /a#"r""i#"' t/atA "!, !ir.K Aain in on"pt o( o**i!!ion, r"pr"!"ntation, pro*otion, "t.A "!, !ir.

K O;". +"lo7 o)r na*" i! t/" na*" o( Nita Ana 15,314.25 t/ati! al!o an in'iation t/at !/" r""i#"' t/" !a*" a*o)ntA "!, !ir.K An', a! in o)r pr"#io)! !tat"*"nt it i! not oini'"n" t/att/"!" t7o


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V4>WT/" partn"r!/ip "8i!t! )ntil 'i!!ol#"' )n'"r t/" la7. Sin" t/"partn"r!/ip r"at"' p"tition"r! an' pri#at" r"!pon'"nt /a! no8"' t"r* an' i! t/"r"(or" a partn"r!/ip at 7ill pr"'iat"' on t/"ir*)t)al '"!ir" an' on!"nt, it *a " 'i!!ol#"' t/" 7ill o( apartn"r. T/)!8 8 8. T/" ri/t to /oo!" 7it/ 7/o* a p"r!on 7i!/"! to a!!oiat"/i*!"l( i! t/" #"r (o)n'ation an' "!!"n" o( t/at partn"r!/ip. It!ontin)"' "8i!t"n" i!, in t)rn, '"p"n'"nt on t/" on!tan o( t/at

*)t)al r"!ol#", alon 7it/ "a/ partn"r! apailit to i#" it, an't/" a!"n" o( a)!" (or 'i!!ol)tion pro#i'"' t/" la7 it!"l(. %"ril,an on" o( t/" partn"r! *a, at /i! !ol" pl"a!)r", 'itat" a'i!!ol)tion o( t/" partn"r!/ip at 7ill. H" *)!t, /o7"#"r, at in oo'(ait/, not t/at t/" att"n'an" o( a' (ait/ an pr"#"nt t/"'i!!ol)tion o( t/" partn"r!/ip )t t/at it an r"!)lt in a liailit (or'a*a"!.V41WAn )n)!ti"' 'i!!ol)tion a partn"r an !)"t /i* to ation (or'a*a"! "a)!" t/" *)t)al a"n t/at ari!"! in a partn"r!/ip,t/" 'otrin" o( '"l"t)! p"r!ona" allo7! t/" partn"r! to /a#" t/"po7"r, alt/o)/ not n""!!aril t/" ri/t to 'i!!ol#" t/" partn"r!/ip.V42W

In t/i! a!", p"tition"r Toao! )nilat"ral "8l)!ion o( pri#at"r"!pon'"nt (ro* t/" partn"r!/ip i! !/o7n /"r *"*o to t/" C)aoo" plainl !tatin t/at pri#at" r"!pon'"nt 7a!, a! o( Oto"r 9,19?, no lon"r t/" #i"-pr"!i'"nt (or !al"! o( G"*in"!!" Ent"rpri!".V43W+ t/at *"*o, p"tition"r Toao ""t"' /"r o7n 7it/'ra7al(ro* t/" partn"r!/ip an' on!i'"r"' /"r!"l( a! /a#in "a!"' to "a!!oiat"' 7it/ t/" partn"r!/ip in t/" arrin on o( t/" )!in"!!.N"#"rt/"l"!!, t/" partn"r!/ip 7a! not t"r*inat"' t/"r" itontin)"! )ntil t/" 7in'in )p o( t/" )!in"!!.V44WT/" 7in'in )p o( partn"r!/ip aair! /a! not "t ""n )n'"rta;"n t/" partn"r!/ip. T/i! i! *ani("!t in p"tition"r! lai* (or !to;! t/at/a' ""n "ntr)!t"' to pri#at" r"!pon'"nt in t/" p)r!)it o( t/"

partn"r!/ip )!in"!!.T/" '"t"r*ination o( t/" a*o)nt o( 'a*a"! o**"n!)rat" 7it/t/" (at)al n'in! )pon 7/i/ it i! a!"' i! pri*aril t/" ta!; o( t/"trial o)rt.V45WT/" Co)rt o( App"al! *a *o'i( t/at a*o)nt onl7/"n it! (at)al n'in! ar" 'ia*"triall oppo!"' to t/at o( t/"lo7"r o)rt,V46W or t/" a7ar' i! palpal or !an'alo)!l an')nr"a!onal "8"!!i#".V4?WHo7"#"r, "8"*plar 'a*a"! t/at ar"a7ar'"' 7a o( "8a*pl" or orr"tion (or t/" p)li oo',V4W!/o)l' " r"')"' to 5>,>>>.>>, t/" a*o)nt orr"tl a7ar'"' t/" Co)rt o( App"al!.Cono*itantl, t/" a7ar' o( *oral 'a*a"! o(1>>,>>>.>> 7a! "8"!!i#" an' !/o)l' " li;"7i!" r"')"' to5>,>>>.>>. Si*ilarl, attorn"! (""! t/at !/o)l' " rant"' on

ao)nt o( t/" a7ar' o( "8"*plar 'a*a"! an' p"tition"r! "#i'"nta' (ait/ in r"()!in to !ati!( pri#at" r"!pon'"nt! plainl #ali', )!tan' '"*an'al" lai*!,V49W app"ar to /a#" ""n "8"!!i#"lrant"' t/" trial o)rt an' !/o)l' t/"r"(or" " r"')"' to25,>>>.>>.HERE$ORE, t/" in!tant p"tition (or r"#i"7 on "rtiorari i! :ENIE:.T/" partn"r!/ip a*on p"tition"r! an' pri#at" r"!pon'"nt i! or'"r"''i!!ol#"', an' t/" parti"! ar" or'"r"' to ""t t/" 7in'in )p an'

liB)i'ation o( t/" partn"r!/ip p)r!)ant to t/" p"rtin"nt pro#i!ion! o(t/" Ci#il Co'". T/i! a!" i! r"*an'"' to t/" R"ional Trial Co)rt (orprop"r pro""'in! r"lati#" to !ai' 'i!!ol)tion. T/" app"al"''"i!ion! o( t/" R"ional Trial Co)rt an' t/" Co)rt o( App"al! ar"A$$IR0E: 7it/ 0O:I$ICATIONS, a! (ollo7! ---1. "tition"r! ar" or'"r"' to !)*it to t/" R"ional Trial Co)rt a(or*al ao)nt o( t/" partn"r!/ip aair! (or t/" "ar! 19? an'19, p)r!)ant to Artil" 1>9 o( t/" Ci#il Co'", in or'"r to'"t"r*in" pri#at" r"!pon'"nt! t"n p"r"nt Q= !/ar" in t/" n"tprot! o( t/" partn"r!/ip2. "tition"r! ar" or'"r"', ointl an' !"#"rall, to pa pri#at"r"!pon'"nt #" p"r"nt >>.>>4. "tition"r! ar" or'"r"', ointl an' !"#"rall, to pa pri#at"r"!pon'"nt *oral 'a*a"! in t/" a*o)nt o( 5>,>>>.>>, "8"*plar'a*a"! in t/" a*o)nt o( 5>,>>>.>> an' attorn"! (""! in t/"a*o)nt o( 25,>>>.>>.SO OR:ERE:.

G.R. No. L-66653 J)n" 19, 196CO00ISSIONER O$ INTERNAL RE%EN&E, p"tition"r,#!.+&RRO&GHS LI0ITE: AN: THE CO&RT O$ TA AEALS,r"!pon'"nt!.Sip, Sala@ar, $"liiano H"rnan'"@ La7 O" (or pri#at"r"!pon'"nt.
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ARAS, J."tition (or "rtiorari to r"#i"7 an' !"t a!i'" t/" :"i!ion 'at"' J)n"2?, 193 o( r"!pon'"nt Co)rt o( Ta8 App"al! in it! C.T.A. Ca!" No.32>4, "ntitl"' M+)rro)/! Li*it"' #!. Co**i!!ion"r o( Int"rnalR"#"n)"M 7/i/ or'"r"' p"tition"r Co**i!!ion"r o( Int"rnalR"#"n)" to rant in (a#or o( pri#at" r"!pon'"nt +)rro)/! Li*it"',ta8 r"'it in t/" !)* o( 1?2,>5.9>, r"pr"!"ntin "rron"o)!lo#"rpai' ran/ prot r"*ittan" ta8.

+)rro)/! Li*it"' i! a (or"in orporation a)t/ori@"' to "na" intra'" or )!in"!! in t/" /ilippin"! t/ro)/ a ran/ o" loat"'at :" la Ro!a orn"r E!t"an Str""t!, L"a!pi %illa", 0a;ati, 0"tro0anila.So*"ti*" in 0ar/ 19?9, !ai' ran/ o" appli"' 7it/ t/" C"ntral+an; (or a)t/orit to r"*it to it! par"nt o*pan aroa', ran/prot a*o)ntin to ?,64?,>5.>>. T/)!, on 0ar/ 14, 19?9, it pai't/" 15Q ran/ prot r"*ittan" ta8, p)r!)ant to S". 24 >:"')t 15Q ran/ prot

r"*ittan" ta8 ....................................... .......1,14?,>5.?>N"t a*o)nt at)all r"*itt"'.................................. 6,499,999.3>Clai*in t/at t/" 15Q prot r"*ittan" ta8 !/o)l' /a#" ""no*p)t"' on t/" a!i! o( t/" a*o)nt at)all r"*itt"'= an' not on t/" a*o)nt "(or" prot r"*ittan" ta85.>>=, pri#at" r"!pon'"nt l"' on :""*"r 24, 19>, a7ritt"n lai* (or t/" r"()n' or ta8 r"'it o( t/" a*o)nt o(1?2,>5.9> r"pr"!"ntin all""' o#"rpai' ran/ prot r"*ittan"ta8, o*p)t"' a! (ollo7!rot! at)all r"*itt"' ..... ....................................6,499,999.3>R"*ittan" ta8 rat" .......................................................15Q+ran/ prot r"*ittan" ta8-

')" t/"r"on ................................................. ..... 9?4,999.9+ran/ prot r"*ittan"ta8 pai' ................................. ............................l,14?,>5.?>L"!! +ran/ prot r"*ittan"ta8 a! ao#" o*p)t"'................................ ................. 9?4,999.9Total a*o)nt r"()n'al"........................................... 1?2,>5.1On $"r)ar 24, 191, pri#at" r"!pon'"nt l"' 7it/ r"!pon'"nto)rt, a p"tition (or r"#i"7, 'o;"t"' a! C.T.A. Ca!" No. 32>4 (or t/"r"o#"r o( t/" ao#"-*"ntion"' a*o)nt o( 1?2,>5.1.On J)n" 2?, 193, r"!pon'"nt o)rt r"n'"r"' it! :"i!ion, t/"'i!po!iti#" portion o( 7/i/ r"a'!ACCOR:INGL, r"!pon'"nt Co**i!!ion o( Int"rnal R"#"n)" i!

/"r" or'"r"' to rant a ta8 r"'it in (a#or o( p"tition"r +)rro)/!Li*it"' t/" a*o)nt o( 1?2,>5.9>. it/o)t prono)n"*"nt a! too!t!.SO OR:ERE:.&nal" to otain a r"on!i'"ration (ro* t/" a(or"!ai' '"i!ion,p"tition"r l"' t/" in!tant p"tition "(or" t/i! Co)rt 7it/ t/" pra"r!a! /"r"in "arli"r !tat"' )pon t/" !ol" i!!)" o( 7/"t/"r t/" ta8 a!")pon 7/i/ t/" 15Q ran/ prot r"*ittan" ta8 !/all " i*po!"'

)n'"r t/" pro#i!ion! o( !"tion 245.9>." r)l" in t/" ar*ati#". T/" p"rtin"nt pro#i!ion o( t/" NationalR"#"n)" Co'" i! S". 24


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R"!pon'"nt on"'"! at l"a!t t/at in /i! r)lin 'at"' Jan)ar 21,19> /" /"l' t/at )n'"r S"tion 24 :""*"r 194.T/" li*it"' partn"r!/ip /a' ""n lin it! ino*" ta8 r"t)rn! a! aorporation, 7it/o)t o"tion t/" /"r"in p"tition"r,Co**i!!ion"r o( Int"rnal R"#"n)", )ntil in 1959 7/"n t/" latt"r, inan a!!"!!*"nt, on!oli'at"' t/" ino*" o( t/" r* an' t/"in'i#i')al ino*"! o( t/" partn"r!-!po)!"! S)t"r an' Spiri r"!)ltinin a '"t"r*ination o( a '"i"n ino*" ta8 aain!t r"!pon'"ntS)t"r in t/" a*o)nt o( 2,6?.>6 (or 1954 an' 4,56?.>> (or 1955.R"!pon'"nt S)t"r prot"!t"' t/" a!!"!!*"nt, an' r"B)"!t"' it!an"llation an' 7it/'ra7al, a! not in aor'an" 7it/ la7, )t /i!


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r"B)"!t 7a! '"ni"'. &nal" to !")r" a r"on!i'"ration, /" app"al"'to t/" Co)rt o( Ta8 App"al!, 7/i/ o)rt, a(t"r trial, r"n'"r"' a'"i!ion, on 11 No#"*"r 1965, r"#"r!in t/at o( t/" Co**i!!ion"ro( Int"rnal R"#"n)".T/" pr"!"nt a!" i! a p"tition (or r"#i"7, l"' t/" Co**i!!ion"ro( Int"rnal R"#"n)", o( t/" ta8 o)rtD! a(or"!ai' '"i!ion. It rai!"!t/"!" i!!)"!,>>>.>> illia* S)t"r an'1,>>>.>> J)lia Spiri an' n"it/"r on" o( t/"* 7a! an in')!trialpartn"r. It (ollo7! t/at illia* J. S)t"r M0oroinM Co., Lt'. 7a! not apartn"r!/ip t/at !po)!"! 7"r" (ori''"n to "nt"r Artil" 16?? o(t/" Ci#il Co'" o( 19.T/" (or*"r C/i"( J)!ti" o( t/" Spani!/ S)pr"*" Co)rt, :. Jo!"Ca!an, in /i! :"r"/o Ci#il, ?t/ E'ition, 1952, %ol)*" 4, pa" 546,(ootnot" 1, !a! 7it/ r"ar' to t/" pro/iition ontain"' in t/"a(or"!ai' Artil" 16??Lo! on)"!, !")n "!to, no p)"'"n "l"rar "ntr" !i "l ontrato '"

!oi"'a' )ni#"r!al, p"ro o po'ran on!tit)ir !oi"'a' parti)larA)nB)" "l p)nto /a !i'o *) '"ati'o, no! inlina*o! a la t"!i!p"r*i!i#a '" lo! ontrato! '" !oi"'a' parti)lar "ntr" "!po!o!, aB)" nin)n pr""pto '" n)"!tro Co'io lo! pro/i", /a B)" "!tara la nor*a "n"ral !")n la B)" to'a p"r!ona "! apa@ paraontratar *i"ntra! no !"a '"lara'o inapa@ por la l". La)ri!pr)'"nia '" la :ir"ion '" lo! R"i!tro! ()" (a#oral" a "!ta*i!*a t"!i! "n !) r"!ol)tion '" 3 '" ("r"ro '" 1936, *a! par""a*iar '" r)*o "n la '" 9 '" *ar@o '" 1943.Nor o)l' t/" !)!"B)"nt *arria" o( t/" partn"r! op"rat" to'i!!ol#" it, !)/ *arria" not "in on" o( t/" a)!"! pro#i'"' (ort/at p)rpo!" "it/"r t/" Spani!/ Ci#il Co'" or t/" Co'" o(


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Co**"r".T/" app"llantD! #i"7, t/at t/" *arria" o( ot/ partn"r! t/"o*pan "a*" a !inl" propri"tor!/ip, i! "B)all "rron"o)!. T/"apital ontri)tion! o( partn"r! illia* J. S)t"r an' J)lia Spiri 7"r"!"parat"l o7n"' an' ontri)t"' t/"* "(or" t/"ir *arria"an' a(t"r t/" 7"r" oin"' in 7"'lo;, !)/ ontri)tion! r"*ain"'t/"ir r"!p"ti#" !"parat" prop"rt )n'"r t/" Spani!/ Ci#il Co'" /il. ??9, an' "opl"D! +an; #!. R"i!t"ro( :""'! o( 0anila, 6> /il. 16?, t/" (r)it! o( t/" 7i("D! parap/"rna"o*" on)al onl 7/"n no lon"r n""'"' to '"(ra t/""8p"n!"! (or t/" a'*ini!tration an' pr"!"r#ation o( t/" parap/"rnalapital o( t/" 7i(". T/"n aain, t/" app"llantD! ar)*"nt "rron"o)!lonn"! it!"l( to t/" B)"!tion o( t/" l"al p"r!onalit o( t/" li*it"'

partn"r!/ip, 7/i/ i! not "!!"ntial to t/" ino*" ta8ailit o( t/"partn"r!/ip !in" t/" la7 ta8"! t/" ino*" o( "#"n oint ao)nt!t/at /a#" no p"r!onalit o( t/"ir o7n. 1App"llant i!, li;"7i!",*i!ta;"n in t/at it a!!)*"! t/at t/" on)al partn"r!/ip o( ain! i!a ta8al" )nit, 7/i/ it i! not. /at i! ta8al" i! t/" Mino*" o( ot/!po)!"!M


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o( t/" !po)!"!, i! not a )!tiation (or r"B)irin on!oli'ation t/"r"#"n)" o'", a! it pr"!"ntl !tan'!, 'o"! not a)t/ori@" it, an' "#"nar! it r"B)irin t/" li*it"' partn"r!/ip to pa ta8 on it! o7nino*".$OR THE $OREGOING REASONS, t/" '"i!ion )n'"r r"#i"7 i! /"r"ar*"'. No o!t!.

J)l 3>, 19?9ETITION $OR A&THORIT TO CONTIN&E &SE O$ THE $IR0 NA0EMSCI, SALAYAR, $ELICIANO, HERNAN:EY CASTILLO.M L&CIANO E.SALAYAR, $LORENTINO . $ELICIANO, +ENIL:O G. HERNAN:EY.GREGORIO R. CASTILLO. AL+ERTO . SAN J&AN, J&AN C. REES. JR.,AN:RES G. GAT0AITAN, J&STINO H. CACANIN:IN, NOEL A. LA0AN,ETHELOL:O E. $ERNAN:EY, ANGELITO C. I0ERIO, E:&AR:O R.CENIYA, TRISTAN A. CATIN:IG, ANCHETA F. TAN, an' ALICE %.ESIGAN,p"tition"r!.

IN THE 0ATTER O$ THE ETITION $OR A&THORIT TO CONTIN&E &SEO$ THE $IR0 NA0E MOYAETA, RO0&LO, :E LEON, 0A+ANTA REES.M RICAR:O J. RO0&LO, +ENJA0IN 0. :E LEON, RO0AN0A+ANTA, JR., JOSE 0A, REES, JES&S S. J. SAOC, E:&AR:O :E LOSANGELES, an' JOSE $. +&ENA%ENT&RA, p"tition"r!.R E S O L & T I O N0ELENCIO-HERRERA, J.Z[.\]7p/^1T7o !"parat" "tition! 7"r" l"' "(or" t/i! Co)rt 1= t/"!)r#i#in partn"r! o( Att. Al"8an'"r Sip, 7/o 'i"' on 0a 5,19?5, an' 2= t/" !)r#i#in partn"r! o( Att. H"r*inio O@a"ta, 7/o'i"' on $"r)ar 14, 19?6, prain t/at t/" " allo7"' to ontin)")!in, in t/" na*"! o( t/"ir r*!, t/" na*"! o( partn"r! 7/o /a'

pa!!"' a7a. In t/" Co)rtD! R"!ol)tion o( S"pt"*"r 2, 19?6, ot/"tition! 7"r" or'"r"' on!oli'at"'."tition"r! a!" t/"ir p"tition! on t/" (ollo7in ar)*"nt!1. &n'"r t/" la7, a partn"r!/ip i! not pro/iit"' (ro* ontin)in it!)!in"!! )n'"r a r* na*" 7/i/ inl)'"! t/" na*" o( a '""a!"'partn"r in (at, Artil" 14> o( t/" Ci#il Co'" "8pliitl !antion! t/"prati" 7/"n it pro#i'"! in t/" la!t pararap/ t/at tX.\_/B7`\T/" )!" t/" p"r!on or partn"r!/ip ontin)in t/" )!in"!! o( t/"partn"r!/ip na*", or t/" na*" o( a '""a!"' partn"r a! partt/"r"o(, !/all not o( it!"l( *a;" t/" in'i#i')al prop"rt o( t/"'""a!"' partn"r lial" (or an '"t! ontrat"' !)/ p"r!on orpartn"r!/ip. 1

2. In r")latin ot/"r pro("!!ion!, !)/ a! ao)ntan an'"nin""rin, t/" l"i!lat)r" /a! a)t/ori@"' t/" a'option o( r*na*"! 7it/o)t an r"!trition a! to t/" )!", in !)/ r* na*", o(t/" na*" o( a '""a!"' partn"r 2 t/" l"i!lati#" a)t/ori@ation i#"nto t/o!" "na"' in t/" prati" o( ao)ntan a pro("!!ionr"B)irin t/" !a*" '"r"" o( tr)!t an' on'"n" in r"!p"t o(li"nt! a! t/at i*pliit in t/" r"lation!/ip o( attorn" an' li"nt to

aB)ir" an' )!" a tra'" na*", !tronl in'iat"! t/at t/"r" i! no()n'a*"ntal poli t/at i! o"n'"' t/" ontin)"' )!" a r* o(pro("!!ional! o( a r* na*" 7/i/ inl)'"! t/" na*" o( a '""a!"'partn"r, at l"a!t 7/"r" !)/ r* na*" /a! aB)ir"' t/"/arat"ri!ti! o( a Mtra'" na*".M 33. T/" Canon! o( ro("!!ional Et/i! ar" not tran!r"!!"' t/"ontin)"' )!" o( t/" na*" o( a '""a!"' partn"r in t/" r* na*" o(a la7 partn"r!/ip "a)!" Canon 33 o( t/" Canon! o( ro("!!ionalEt/i! a'opt"' t/" A*"rian +ar A!!oiation '"lar"! t/at tX.\_/B7`\... T/" ontin)"' )!" o( t/" na*" o( a '""a!"' or (or*"r partn"r7/"n p"r*i!!il" loal )!to*, i! not )n"t/ial )t ar" !/o)l'

" ta;"n t/at no i*po!ition or '""ption i! prati"' t/ro)/ t/i!)!". ... 4

4. T/"r" i! no po!!iilit o( i*po!ition or '""ption "a)!" t/"'"at/! o( t/"ir r"!p"ti#" '""a!"' partn"r! 7"r" 7"ll-p)lii@"' inall n"7!pap"r! o( "n"ral ir)lation (or !"#"ral 'a! t/"!tation"ri"! no7 "in )!"' t/"* arr n"7 l"tt"r/"a'!in'iatin t/" "ar! 7/"n t/"ir r"!p"ti#" '""a!"' partn"r! 7"r"onn"t"' 7it/ t/" r* p"tition"r! 7ill noti( all l"a'in nationalan' int"rnational la7 'ir"tori"! o( t/" (at o( t/"ir r"!p"ti#"'""a!"' partn"r!D '"at/!. 5

5. No loal )!to* pro/iit! t/" ontin)"' )!" o( a '""a!"'partn"rD! na*" in a pro("!!ional r*D! na*" 6 t/"r" i! no )!to* or)!a" in t/" /ilippin"!, or at l"a!t in t/" Gr"at"r 0anila Ar"a, 7/i/r"oni@"! t/at t/" na*" o( a la7 r* n""!!aril I'"nti"! t/"in'i#i')al *"*"r! o( t/" r*. ?

6. T/" ontin)"' )!" o( a '""a!"' partn"rD! na*" in t/" r* na*"o( la7 partn"r!/ip! /a! ""n on!i!t"ntl allo7"' &.S. Co)rt! an'i! an a"pt"' prati" in t/" l"al pro("!!ion o( *o!t o)ntri"! int/" 7orl'.

T/" B)"!tion in#ol#"' in t/"!" "tition! r!t a*" )n'"r


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on!i'"ration t/i! Co)rt in 1953 7/"n a la7 r* in C") o( t/" Ci#il Co'"it"' p"tition"r!, !)pra, t/" r!t (ator to on!i'"r i! t/at it i!7it/in C/apt"r 3 o( Titl" I o( t/" Co'" "ntitl"' M:i!!ol)tion an'in'in &p.M T/" Artil" pri*aril '"al! 7it/ t/" "8"*ption (ro*liailit in a!"! o( a 'i!!ol#"' partn"r!/ip, o( t/" in'i#i')al prop"rto( t/" '""a!"' partn"r (or '"t! ontrat"' t/" p"r!on orpartn"r!/ip 7/i/ ontin)"! t/" )!in"!! )!in t/" partn"r!/ipna*" or t/" na*" o( t/" '""a!"' partn"r a! part t/"r"o(. /at t/"

la7 ont"*plat"! t/"r"in i! a /ol'-o#"r !it)ation pr"parator to(or*al r"[email protected]"on'l, Artil" 14> tr"at! *or" o( a o**"rial partn"r!/ip 7it/a oo' 7ill to prot"t rat/"r t/an o( apro("!!ional partn"r!/ip, 7it/no !al"al" oo' 7ill )t 7/o!" r"p)tation '"p"n'! on t/" p"r!onalB)aliation! o( it! in'i#i')al *"*"r!. T/)!, it /a! ""n /"l' t/at a!al"al" oo'7ill an "8i!t onl in a o**"rial partn"r!/ip an'annot ari!" in a pro("!!ional partn"r!/ip on!i!tin o( la7"r!. 9tX.\_/B7`\

A! a "n"ral r)l", )pon t/" 'i!!ol)tion o( a o**"rial partn"r!/ip


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t/" !)""'in partn"r! or parti"! /a#" t/" ri/t to arr on t/")!in"!! )n'"r t/" ol' na*", in t/" a!"n" o( a !tip)lation(ori''in it, 4, p. 115=


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*"*oran')*, t/" N"7 or; S)pr"*" Co)rt !)!tain"' t/" )!" o( t/"r* na*" Al"8an'"r Gr""n "#"n i( non" o( t/" pr"!"nt t"npartn"r! o( t/" r* "ar! "it/"r na*" "a)!" t/" prati" 7a!!antion"' )!to* an' 'i' not o"n' an !tat)tor pro#i!ion orl"i!lati#" poli an' 7a! a'opt"' ar""*"nt o( t/" parti"!. T/"Co)rt !tat"' t/"r"in tX.\_/B7`\T/" prati" !o)/t to " pro!ri"' /a! t/" !antion o( )!to* an'o"n'! no !tat)tor pro#i!ion or l"i!lati#" poli. Canon 33 o( t/"

Canon! o( ro("!!ional Et/i! o( ot/ t/" A*"rian +ar A!!oiationan' t/" N"7 or; Stat" +ar A!!oiation pro#i'"! in part a! (ollo7!MT/" ontin)"' )!" o( t/" na*" o( a '""a!"' or (or*"r partn"r,7/"n p"r*i!!il" loal )!to* i! not )n"t/ial, )t ar" !/o)l'" ta;"n t/at no i*po!ition or '""ption i! prati"' t/ro)/ t/i!)!".M T/"r" i! no B)"!tion a! to loal )!to*. 0an r*! in t/" it)!" t/" na*"! o( '""a!"' *"*"r! 7it/ t/" appro#al o( ot/"rattorn"!, ar a!!oiation! an' t/" o)rt!. T/" App"llat" :i#i!ion o(t/" $ir!t :"part*"nt /a! on!i'"r"' t/" *att"r an' r"a/"' T/"onl)!ion t/at !)/ prati" !/o)l' not " pro/iit"'.


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+ACORRO, p"tition"r!,#!.HON. CO&RT O$ AEALS, SEC&RITIES AN: ECHANGE CO00ISSIONan' JOAK&IN L. 0ISA,r"!pon'"nt!.%IT&G, J.T/" in!tant p"tition !"";! a r"#i"7 o( t/" '"i!ion r"n'"r"' t/"Co)rt o( App"al!, 'at"' 26 $"r)ar 1993, in CA-G.R. S No. 2463

an' No. 2464 ar*in in toto t/at o( t/" S")riti"! an' E8/an"Co**i!!ion >,>>>.>> an' "8"*plar 'a*a"! in t/" a*o)nt o(2>>,>>>.>>.M"tition"r li;"7i!" pra"' (or !)/ ot/"r an' ()rt/"r r"li"(! t/at t/"Co**i!!ion *a '""* )!t an' "B)ital" )n'"r t/" pr"*i!"!.MOn 13 J)l 19, r"!pon'"nt!-app"ll""! l"' t/"ir oppo!ition to t/"p"tition.

On 13 J)l 19, p"tition"r l"' /i! R"pl to t/" Oppo!ition.On 31 0ar/ 199, t/" /"arin o"r r"n'"r"' a '"i!ion r)lint/atMVW"tition"rD! 7it/'ra7al (ro* t/" la7 r* +ito, 0i!a Lo@a'a 'i'not 'i!!ol#" t/" !ai' la7 partn"r!/ip. Aor'inl, t/" p"tition"r an'r"!pon'"nt! ar" /"r" "noin"' to ai'" t/" pro#i!ion! o( t/"Ar""*"nt r"lati#" to t/" *att"r o#"rnin t/" liB)i'ation o( t/"!/ar"! o( an r"tirin or 7it/'ra7in partn"r in t/" partn"r!/ipint"r"!t.M 1


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On app"al, t/" SEC "n an r"#"r!"' t/" '"i!ion o( t/" H"arinO"r an' /"l' t/at t/" 7it/'ra7al o( Attorn" JoaB)in L. 0i!a /a''i!!ol#"' t/" partn"r!/ip o( M+ito, 0i!a Lo@a'a.M T/" Co**i!!ionr)l"' t/at, "in a partn"r!/ip at 7ill, t/" la7 r* o)l' "'i!!ol#"' an partn"r at anti*", !)/ a! /i! 7it/'ra7alt/"r"(ro*, r"ar'l"!! o( oo' (ait/ or a' (ait/, !in" no partn"r an" (or"' to ontin)" in t/" partn"r!/ip aain!t /i! 7ill. In it!'"i!ion, 'at"' 1? Jan)ar 199>, t/" SEC /"l'

HERE$ORE, pr"*i!"! on!i'"r"' t/" app"al"' or'"r o( 31 0ar/199 i! /"r" RE%ERSE: in!o(ar a! it onl)'"! t/at t/"partn"r!/ip o( +ito, 0i!a Lo@a'a /a! not ""n 'i!!ol#"'. T/" a!"i! /"r" RE0AN:E: to t/" H"arin O"r (or '"t"r*ination o( t/"r"!p"ti#" ri/t! an' oliation! o( t/" parti"!. 2

T/" parti"! !o)/t a r"on!i'"ration o( t/" ao#" '"i!ion. Attorn"0i!a, in a''ition, a!;"' (or an appoint*"nt o( a r""i#"r to ta;" o#"rt/" a!!"t! o( t/" 'i!!ol#"' partn"r!/ip an' to ta;" /ar" o( t/"7in'in )p o( it! aair!. On 4 April 1991, r"!pon'"nt SEC i!!)"' anor'"r '"nin r"on!i'"ration, a! 7"ll a! r""tin t/" p"tition (orr""i#"r!/ip, an' r"it"ratin t/" r"*an' o( t/" a!" to t/" H"arin

O"r.T/" parti"! l"' 7it/ t/" app"llat" o)rt !"parat" app"al! 5 S"pt"*"r 1991 an' 21 :""*"r 1991. T/" '"at/ o( t/" t7opartn"r!, a! 7"ll a! t/" a'*i!!ion o( n"7 partn"r!, in t/" la7 r*pro*pt"' Attorn" 0i!a to r"n"7 /i! appliation (or r""i#"r!/ip


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7/at t/" la7 ont"*plat"!, i! a !p"i )n'"rta;in or Mpro"tM7/i/ /a! a '"nit" or '"nal" p"rio' o( o*pl"tion. 3

T/" irt/ an' li(" o( a partn"r!/ip at 7ill i! pr"'iat"' on t/" *)t)al'"!ir" an' on!"nt o( t/" partn"r!. T/" ri/t to /oo!" 7it/ 7/o* ap"r!on 7i!/"! to a!!oiat" /i*!"l( i! t/" #"r (o)n'ation an'"!!"n" o( t/at partn"r!/ip. It! ontin)"' "8i!t"n" i!, in t)rn,'"p"n'"nt on t/" on!tan o( t/at *)t)al r"!ol#", alon 7it/ "a/

partn"rD! apailit to i#" it, an' t/" a!"n" o( a a)!" (or'i!!ol)tion pro#i'"' t/" la7 it!"l(. %"ril, an on" o( t/" partn"r!*a, at /i! !ol" pl"a!)r", 'itat" a 'i!!ol)tion o( t/" partn"r!/ip at7ill. H" *)!t, /o7"#"r, at in oo' (ait/, not t/at t/" att"n'an" o(a' (ait/ an pr"#"nt t/" 'i!!ol)tion o( t/" partn"r!/ip 4 )t t/at itan r"!)lt in a liailit (or 'a*a"!. 5

In pa!!in, n"it/"r 7o)l' t/" pr"!"n" o( a p"rio' (or it! !p"i')ration or t/" !tat"*"nt o( a parti)lar p)rpo!" (or it! r"ationpr"#"nt t/" 'i!!ol)tion o( an partn"r!/ip an at or 7ill o( apartn"r. 6 A*on partn"r!, ? *)t)al a"n ari!"! an' t/" 'otrin"o( '"l"t)! p"r!ona" allo7! t/"* to /a#" t/" po7"r, alt/o)/ not

n""!!aril t/" ri/t, to 'i!!ol#" t/" partn"r!/ip. An )n)!ti"''i!!ol)tion t/" partn"r an !)"t /i* to a po!!il" ation (or'a*a"!.T/" 'i!!ol)tion o( a partn"r!/ip i! t/" /an" in t/" r"lation o( t/"parti"! a)!"' an partn"r "a!in to " a!!oiat"' in t/"arrin on, a! *i/t " 'i!tin)i!/"' (ro* t/" 7in'in )p o(, t/")!in"!!. &pon it! 'i!!ol)tion, t/" partn"r!/ip ontin)"! an' it!l"al p"r!onalit i! r"tain"' )ntil t/" o*pl"t" 7in'in )p o( it!)!in"!! )l*inatin in it! t"r*ination. 9

T/" liB)i'ation o( t/" a!!"t! o( t/" partn"r!/ip (ollo7in it!'i!!ol)tion i! o#"rn"' #ario)! pro#i!ion! o( t/" Ci#il Co'" 1>

/o7"#"r, an ar""*"nt o( t/" partn"r!, li;" an ot/"r ontrat, i!in'in a*on t/"* an' nor*all ta;"! pr""'"n" to t/" "8t"ntapplial" o#"r t/" Co'"D! "n"ral pro#i!ion!. " /"r" ta;" not" o(pararap/ o( t/" MA*"n'*"nt to Artil"! o( artn"r!/ipM r"a'int/)!l. . . In t/" "#"nt o( t/" '"at/ or r"tir"*"nt o( an partn"r, /i!int"r"!t in t/" partn"r!/ip !/all " liB)i'at"' an' pai' in aor'an"7it/ t/" "8i!tin ar""*"nt! an' /i! partn"r!/ip partiipation !/allr"#"rt to t/" S"nior artn"r! (or alloation a! t/" S"nior artn"r!*a '"t"r*in" pro#i'"', /o7"#"r, t/at 7it/ r"!p"t to t/" t7o

Al(aro Str""t, Sal"'o %illa", 0a;ati, 0"tro 0anila, t/"ir tr)" #al)"at t/" ti*" o( !)/ '"at/ or r"tir"*"nt !/all " '"t"r*in"' t7o,>>>.>>(or t/" S"nior artn"r!, 1>,>>>.>> in t/" a!" o( t7o


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#!.THE HONORA+LE CO&RT O$ AEALS, RE0E:IOS ESTANISLAO,E0ILIO an' LEOCA:IO SANTIAGO,r"!pon'"nt!.A)!tin O. +"nit"@ (or p"tition"r.+"na*in C. ato (or pri#at" r"!pon'"nt!.GANCACO, J.

+ t/i! p"tition (or "rtiorari t/" Co)rt i! a!;"' to '"t"r*in" i( apartn"r!/ip "8i!t! "t7""n *"*"r! o( t/" !a*" (a*il ari!in (ro*t/"ir oint o7n"r!/ip o( "rtain prop"rti"!."tition"r an' pri#at" r"!pon'"nt! ar" rot/"r! an' !i!t"r! 7/o ar"o-o7n"r! o( "rtain lot! at t/" orn"r o( Annapoli! an' A)rora +l#'.,K)"@onCit 7/i/ 7"r" t/"n "in l"a!"' to t/" S/"ll Co*pan o(t/" /ilippin"! Li*it"' pri#at" r"!pon'"nt! l"' a o*plaint in

t/" Co)rt o( $ir!t In!tan" o( Ri@al aain!t p"tition"r prain a*onot/"r! t/at t/" latt"r " or'"r"'1. to "8")t" a p)li 'o)*"nt "*o'in all t/" pro#i!ion! o( t/"partn"r!/ip ar""*"nt "nt"r"' into "t7""n plainti! an''"("n'ant a! pro#i'"' in Artil" 1??1 o( t/" N"7 Ci#il Co'"2. to r"n'"r a (or*al ao)ntin o( t/" )!in"!! op"ration o#"rint/" p"rio' (ro* 0a 6, 1966 )p to :""*"r 21, 196 an' (ro*Jan)ar 1, 1969 )p to t/" ti*" t/" or'"r i! i!!)"' an' t/at t/" !a*"

" !)"t to prop"r a)'it3. to pa t/" plainti! t/"ir la7()l !/ar"! an' partiipation in t/" n"tprot! o( t/" )!in"!! in an a*o)nt o( no l"!! t/an l5>,>>>.>> 7it/int"r"!t at t/" rat" o( 1Q p"r *ont/ (ro* 'at" o( '"*an' )ntil ()llpa*"nt t/"r"o( (or t/" "ntir" ')ration o( t/" )!in"!! an'4. to pa t/" plainti! t/" a*o)nt o( 1>,>>>.>> a! attorn"D! (""!an' o!t! o( t/" !)it >>.>>attorn"D! ("" an' o!t!. ri#at" r"!pon'"nt l"' a *otion (or

r"on!i'"ration o( t/" '"i!ion. On :""*"r 1>, 19?5, Hon. Riar'oT"n!)an 7/o 7a! t/" n"7l appoint"' pr"!i'in )'" o( t/" !a*"ran/, !"t a!i'" t/" a(or"!ai' '"ri!ion an' r"n'"r"' anot/"r'"i!ion in (a#or o( !ai' r"!pon'"nt!.T/" 'i!po!iti#" part t/"r"o( r"a'! a! (ollo7!HERE$ORE, t/" :"i!ion o( t/i! Co)rt 'at"' Oto"r 14, 19?5 i!/"r" r"on!i'"r"' an' a n"7 )'*"nt i! /"r" r"n'"r"' in (a#oro( t/" plainti! an' a! aain!t t/" '"("n'ant,>>>.>>, 7it/ int"r"!t t/"r"on at t/" rat" o( On"


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"n)*"ratin !"#"n


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!/all " "B)al to l5,>>>.2. T/" ao#" !tat"' *ont/l r"ntal! a)*)lat"' !/all " tr"at"' a!a''itional a!/ '"po!it :EALER to SHELL, t/"r" in inr"a!in/i! r"'it li*it (ro* 1>,>>> to 25,>>>. T/i! ar""*"nt, t/"r"(or",an"l! an' !)p"r!"'"! t/" Joint a'a#it 'at"' 11 April 1966"8")t"' t/" CO-ONERS.3. E"ti#" )pon t/" !inin o( t/i! ar""*"nt, SHELL ar""! toallo7 :EALER to p)r/a!" (ro* SHELL p"trol")* pro')t!, on r"'it,

)p to t/" a*o)nt o( 25,>>>.4. T/i! inr"a!" in t/" r"'it !/all al!o " !)"t to t/" !a*" t"r*!an' on'ition! o( t/" ao#"-*"ntion"' Ca!/ l"'" Ar""*"nt'at"' llt/ 0a 1966. Oto"r 1966, *or" or l"!! o#"rin !ai' 15,>>>.>>.In t/" !)!"B)"nt 'o)*"nt "ntitl"' MA''itional Ca!/ l"'"

Ar""*"ntM ao#" r"pro')"' 3 A))!t 2, 1922IN%OL&NTAR INSOL%ENC O$ CA0OS R&E:A CO., S. "n C.,app"ll"",#!.ACI$IC CO00ERCIAL CO., ASIATIC ETROLE&0 CO., an'INTERNATIONAL +ANFING CORORATION,p"tition"r!-app"llant!.Jo!" )lo, Ro!! an' La7r"n" an' J. A. ol(!on (or app"llant!.Antonio San@ (or app"ll"".RO0&AL:EY, J.T/" r"or' o( t/i! pro""'in /a#in ""n tran!*itt"' to t/i! o)rt #irt)" o( an app"al ta;"n /"r"in, a *otion 7a! pr"!"nt"' t/"app"llant! prain t/i! o)rt t/at t/i! a!" " on!i'"r"' p)r"l a


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*oot B)"!tion no7, (or t/" r"a!on t/at !)!"B)"nt to t/" '"i!ionapp"al"' (ro*, t/" partn"r!/ip Ca*po! R)"'a Co., #ol)ntarill"' an appliation (or a )'iial '"r"" a')'in it!"l( in!ol#"nt,7/i/ i! )!t 7/at t/" /"r"in p"tition"r! an' app"llant! tri"' tootain (ro* t/" lo7"r o)rt in t/i! pro""'in.T/" *otion no7 "(or" )! *)!t ", an' i! /"r", '"ni"' "#"n)n'"r t/" (at! !tat"' t/" app"llant! in t/"ir *otion a(or"!ai'.T/" B)"!tion rai!"' in t/i! a!" i! not p)r"l *oot on" t/" (at t/at

a *an 7a! in!ol#"nt on a "rtain 'a 'o"! not )!ti( an in("r"n"t/at /" 7a! !o*" ti*" prior t/"r"to.roo( t/at a *an 7a! in!ol#"nt on a "rtain 'a 'o"! not )!ti( anin("r"n" t/at /" 7a! on a 'a !o*" ti*" prior t/"r"to. 0anontin"ni"!, !)/ a! )n7i!" in#"!t*"nt!, lo!in ontrat!,*i!(ort)n", or ai'"nt, *i/t /app"n to r"')" a p"r!on (ro* a!tat" o( !ol#"n 7it/in a !/ort !pa" o( ti*".


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o( t/" li*it"' partn"r! (or t/" oliation! an' lo!!"! o( t/"partn"r!/ip i! li*it"' to t/" a*o)nt! pai' or pro*i!"' to " pai'into t/" o**on ()n' "8"pt 7/"n a li*it"' partn"r !/o)l' /a#"inl)'"' /i! na*" or on!"nt"' to it! inl)!ion in t/" r* na*"


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o*pani"! in t/"ir o*pan na*"! an' not aain!t t/" in'i#i')alpartn"r! on!tit)tin t/" r*. In t/" Stat"!, in 7/i/ t/" in'i#i')al*"*"r! o( t/" r* *)!t " !"parat"l !"r#"' 7it/ pro"!!, t/"r)l" al!o pr"#ail! t/at t/" *)!t " parti"! to t/" ation, "it/"rplainti! or '"("n'ant, an' t/at t/" ation annot " ro)/t in t/"na*" o( or aain!t t/" o*pan it!"l(. T/i! (ollo7! nat)rall (or t/"r"a!on t/at, i( it i! n""!!ar to !"r#" t/" partn"r! in'i#i')all, t/"ar" "ntitl"' to " /"ar' in'i#i')all in t/" ation an' t/" *)!t,

t/"r"(or", " *a'" parti"! t/"r"to !o t/at t/" an " /"ar'. It7o)l' " i'l" to !"r#" pro"!! on in'i#i')al *"*"r! o( apartn"r!/ip i( t/" litiation 7"r" to " on')t"' in t/" na*" o( t/"partn"r!/ip it!"l( an' t/" ')l on!tit)t"' oial! o( t/"partn"r!/ip "8l)!i#"l.$ro* 7/at /a! ""n !ai' it i! appar"nt t/at t/" plainti in t/i! ationi! atin ontrar to it! o7n ont"ntion rinin t/" ation in t/"na*" o( t/" o*pan " !"r#"' 7it/ pro"!!, t/"n t/" ation !/o)l'" ro)/t in t/" in'i#i')al na*"! o( t/" partn"r! an' not in t/"na*" o( t/" o*pan it!"l(.Artil" 35 o( t/" Ci#il Co'" pro#i'"!T/" (ollo7in ar" )'iial p"r!on!

1. T/" orporation, a!!oiation!, an' in!tit)tion! o( p)li int"r"!tr"oni@"' la7.2. T/" a!!oiation! o( pri#at" int"r"!t, " t/" i#il, o**"rial, orin')!trial, to 7/i/ t/" la7 rant! prop"r p"r!onalit, in'"p"n'"nt o(t/at o( "a/ *"*"r t/"r"o(.Artil" 3 pro#i'"! MJ)'iial p"r!on! *a aB)ir" an' po!!"!!prop"rt o( all ;in'!, a! 7"ll a! ontrat oliation! an' in!tit)t" i#ilor ri*inal ation! in aor'an" 7it/ t/" la7! an' r)l"! o( t/"ir"!tali!/*"nt.MArtil" 116 o( t/" Co'" o( Co**"r" pro#i'"! in part MA(t"r ao**"rial a!!oiation /a! ""n "!tali!/"', it !/all /a#" l"alr"pr"!"ntation in all it! at! an' ontrat!.M

T/"!" pro#i!ion! /a#" ""n t/" (o)n'ation o( t/" prati" (ollo7"'7it/o)t int"rr)ption (or *an "ar! t/at a!!oiation o( t/" la!! to7/i/ plainti "lon! /a#" an in'"p"n'"nt an' !"parat" l"al"ntit !)i"nt to p"r*it t/"* to !)" an' " !)"' in t/" o*panna*" an' to " !"r#"' 7it/ pro"!! t/ro)/ t/" /i"( o"r or*anain a"nt t/"r"o( or an ot/"r oial o( t/" o*pan!p"i"' la7.A! to t/" !"on' ont"ntion, 7" *a !a t/at t/" pr"!)*ption i!t/at a )'*"nt r"n'"r"' a )!ti"D! o)rt i! a #ali' an'"n(or"al" )'*"nt 7/"r" t/" r"or' 'i!lo!"! t/at all o( t/" !t"p!n""!!ar to on("r )ri!'ition on t/" o)rt /a#" ""n ta;"n. In t/"a!" "(or" )! it ar*ati#"l app"ar! t/at t/" !"r#i" o( pro"!!

7a! *a'" on t/" p"r!on t/" !/"ri "rti"' 7a! t/" *anaina"nt o( t/" '"("n'ant o*pan. T/" !/"riD! "rtiat" !"r#"! a!pri*a (ai" "#i'"n" o( t/" "8i!t"n" o( t/" (at! !tat"' t/"r"in. T/"r"or', t/"r"(or", 'i!lo!"!, !o (ar a! t/" (at o( !"r#i" i! on"rn"',t/at it 7a! ')l *a'" on t/" *anain a"nt o( t/" o*pan a!r"B)ir"' !"tion 396, pararap/ 1, o( t/" Co'" o( Ci#il ro"')r".In atta;in t/" )'"*"nt on t/" ro)n' t/at !"r#i" 7a! not *a'"on t/" *anain a"nt o( t/" o*pan, it i! in)*"nt on t/"

plainti to o#"ro*" t/" pr"!)*ption ari!in (ro* t/" !/"riD!"rtiat" "(or" t/" atta; 7ill !)""'. En'"a#orin to o#"ro*"t/" pr"!)*ption r"("rr"' to, plainti o"r"' a! a 7itn"!! on" To*a!O. S"o#ia, an "*plo"" o( t/" plainti o*pan. H" t"!ti"' t/at/" 7a! a oo;;""p"r an' t/at a! !)/ /" 7a! 7"ll aB)aint"' 7it/t/" )!in"!! o( t/" o*pan an' t/at t/" p"r!on 0aapinlar"("rr"' to in t/" !/"riD! "rtiat" a! *anain a"nt o( t/"plainti o*pan 7a! an a"nt (or t/" !al" o( plo7!, o( 7/i/ t/"plainti o*pan 7a! a *an)(at)r"r an' t/at /" /a' no ot/"rr"lation! 7it/ t/" o*pan t/an t/at !tat"'. :)rin t/" o)r!" o(t/" "8a*ination t/i! B)"!tion 7a! p)t to an' an!7"r "liit"' (ro*t/i! 7itn"!!

Ho7 'o o) ;no7 t/at t/" 7"r" not !)**on"', or t/at t/" 'i' not;no7 o( t/i! a!" ro)/t "(or" t/" )!ti" o( t/" p"a" o( t/" ito( 0anilaI "in t/" oo;;""p"r an' t/" "n"ral attorn"-in-(at to %ara! Co., in Iloilo, o)/t to ;no7 7/"t/"r t/" /a#" ""n noti"' or!)**on"', )t I onl ;n"7 ao)t it 7/"n t/" !/"ri app"ar"' in o)ro" to *a;" t/" l"#.T/i! i! t/" onl 7itn"!! 7/o t"!ti"' in t/" a!". It 'o"! not app"ar7/"n /" "a*" t/" oo;;""p"r o( t/" o*pan, or t/at /" 7a! in!)/ a po!ition t/at /" o)l' ;no7 or 'i' ;no7 p"r!onall t/" at! o(t/" o*pan an' it! r"lation! to 0aapinla. H" 'o"! not t"!ti( o(/i! o7n ;no7l"'" to t/" "!!"ntial (at! n""!!ar to ontro#"rt t/"

!tat"*"nt! ontain"' it t/" !/"riD! "rtiat" o( !"r#i". Hi!t"!ti*on i! rat/"r n"ati#" t/an po!iti#", it "in at all ti*"!po!!il", in !pit" o( /i! "#i'"n", in'""', in !trit aor' t/"r"7it/,t/at %ara! Co., o( 7/i/ t/" 7itn"!! 7a! n"it/"r oial nor*ana"r, o)l' /a#" appoint"' a *anain a"nt (or t/" o*panor o)l' /a#" r"*o#"' /i* 7it/o)t t/" p"r!onal ;no7l"'" o( t/"7itn"!!. T/" 7itn"!! /a' no p"r!onal ;no7l"'" o( t/" r"lation"t7""n t/" o*pan an' 0aapinla. H" n"#"r !a7 t/" ontrat"8i!tin "t7""n t/"*. H" 'i' not /"ar t/" ar""*"nt "t7""nt/"* nor 'i' /" ;no7 o( /i! o7n ;no7l"'" 7/at t/" r"lation!"t7""n t/" o*pan an' 0aapinla 7"r". Hi! t"!ti*on "!i'"!"in n"ati#" in /arat"r /a! in it *an o( t/" "l"*"nt! o(

/"ar!a an' i! not at all !ati!(ator It 7o)l' /a#" ""n #"r "a! to t/" partn"r!/ip No Tian T"; an' No Ha p"tition"r /"r"in


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/"ar!a an' i! not at all !ati!(ator. It 7o)l' /a#" ""n #"r "a! topr"!"nt on" o( t/" *"*"r! o( t/" o*pan, or all o( t/"*, 7/o"na"' 0aapinla, 7/o ;no7 t/" r"lation! "t7""n /i* an' t/"o*pan, to t"!ti( a! to 7/at t/o!" r"lation! 7"r" an' to '"n, i(t/at 7"r" t/" (at, t/at 0aapinla 7a! !)/ an a"nt or oial o(t/" o*pan a! i! 7it/in t/" p)r#i"7 o( !"tion 396 ao#" r"("rr"'to. T/" (at! !tat"' in t/" "rtiat" o( t/" !/"ri 7ill not "on!i'"r"' a! o#"ro*" an' r")tt"' "8"pt on l"ar "#i'"n"!/o7in t/" ontrar. T/" "#i'"n" o( t/" oo;;""p"r, 7/o i! t/"onl 7itn"!! (or t/" o*pan, i! not !ati!(ator in an !"n!" an' i!B)it" in!)i"nt to o#"ro*" t/" pr"!)*ption "!tali!/"' t/"!/"riD! "rtiat".In #i"7 o( t/"!" on!i'"ration! it i! not n""!!ar to on!i'"r t/"B)"!tion pr"!"nt"' t/" pa*"nt t/" plainti o*pan o( t/")'*"nt.T/" )'*"nt app"al"' (ro* i! r"#"r!"' an' t/" o*plaint'i!*i!!"' on t/" *"rit!, 7it/o)t o!t! in t/i! in!tan". So or'"r"'.

G.R. No. L-4113 April ?, 194?NGO TIAN TEF an' NGO HA, p"tition"r,#!.HILIINE E:&CATION CO., INC., r"!pon'"nt.Tan!in!in an' ato (or p"tition"r.0arial E!po!o (or r"!pon'"nt.ARAS, J.T/" plainti, /ilippin" E')ation Co., In., in!tit)t"' in t/" Co)rt o($ir!t In!tan" o( 0anila an ation aain!t t/" '"("n'ant!, %i"nt" Tanalia! C/an S an' t/" partn"r!/ip o( No Tian T"; an' No Ha, (or

t/" r"o#"r o( !o*" 16,>?>.14, )npai' o!t o( *"r/an'i!"p)r/a!"' L"" G)an +o8 $ator (ro* t/" plainti an' #" ot/"rorporat" "ntiti"! 7/i/, t/o)/ not parti"! to t/" ation, /a'pr"#io)!l a!!in"' t/"ir r"'it! to t/" plainti, to"t/"r 7it/attorn"D! (""!, int"r"!t an' o!t!. ar""*"nt o( t/" parti"!, t/"a!" 7a! /"ar' "(or" a r"("r"", Attorn" $rani!o :al)pan, 7/o in')" ti*" !)*itt"' /i! r"port /ol'in t/" '"("n'ant! ointl an'!"#"rall lial" to t/" plainti (or t/" !)* o( 16,>?>.14 pl)!attorn"D! (""! an' int"r"!t at t/" rat"! !p"i"' in t/" r"port. On0ar/ 6, 1939, t/" Co)rt o( $ir!t In!tan" o( 0anila r"n'"r"')'*"nt 7a! ar*"' t/" Co)rt o( App"al! in it! '"i!ion o(Jan)ar 31, 1941, no7 t/" !)"t o( o)r r"#i"7 at t/" in!tan" o(

t/" partn"r!/ip No Tian T"; an' No Ha, p"tition"r /"r"in.MIt app"ar! t/at,M B)otin (ro* t/" '"i!ion o( t/" Co)rt o( App"al!7/o!" n'in! o( (at ar" onl)!i#", Ma! (ar a; a! t/" "ar 1925,t/" 0o'"rn +o8 $ator 7a! "!tali!/"' at 6>3 0a'al"na Str""t,0anila. It 7a! at r!t o7n"' No Ha, 7/o t/r"" "ar! lat"r 7a!oin"' No Tian T"; a! a )nior partn"r. T/" *o'"rn +o8 $ator'"alt in par" an' !i*ilar *"r/an'i!" an' p)r/a!"' oo'! (ro* t/"plainti an' it! a!!inor! in t/" na*"! o( t/" 0o'"rn +o8 $ator,No Ha an' Co., Go Ha +o8 $ator, or Go Ha. T/"n ao)t t/""ar 193>, t/" L"" G)an +o8 $ator 7a! "!tali!/"' a ("7 *"t"r!(ro* t/" 0o'"rn +o8 $ator, )n'"r t/" *ana"*"nt o( %i"nt" Tan./"n t/at on"rn, t/ro)/ %i"nt" Tan, !o)/t r"'it 7it/ t/"plainti an' it! a!!inor!, No Ha, in on#"r!ation! an' int"r#i"7!7it/ t/"ir o"r! an' "*plo""!, r"pr"!"nt"' t/at /" 7a! t/"prinipal o7n"r o( !)/ (ator, t/at t/" L"" G)an +o8 $ator an't/" 0o'"rn +o8 $ator "lon"' to t/" !a*" o7n"r, an' t/at t/"L"" G)an +o8 $ator 7a! a !)!i'iar o( t/" 0o'"rn +o8 $ator.T/"r" i! "#i'"n" t/at *an oo'! p)r/a!"' in t/" na*" o( t/" L""G)an +o8 $ator 7"r" '"li#"r"' to t/" 0o'"rn +o8 $ator t/""*plo""! o( t/" plainti an' it! a!!inor! )pon t/" "8pr"!!

'ir"tion o( %i"nt" Tan. T/"r" i! al!o "#i'"n" t/at t/" oll"tor! o(t/" !"ll"r! 7"r" r"B)"!t"' %i"nt" Tan to oll"t an' 'i' oll"t (ro* t/" 0o'"rn +o8 $ator t/" ill! aain!t t/" L"" G)an +o8$ator. In t/" (at t/" r"or' !/o7! *an /";! !in"' No Haor No Tian T"; in pa*"nt o( ao)nt! o( t/" L"" G)an +o8 $ator.$)rt/"r*or", an' t/i! !""*! to " onl)!i#"-No Ha, t"!ti(in(or t/" '"("n!", a'*itt"' t/at D/"D 7a! t/" o7n"r o( t/" L"" G)an+o8 $ator in an' "(or" t/" "ar 1934, )t t/at in Jan)ar, 1935,D/"D !ol' it, t/" ontrat o( !al" E8/iit ?, to %i"nt" Tan, 7/o /a'""n /i! *ana"r o( t/" )!in"!!. Tan '"lar"' al!o t/at "(or"Jan)ar, 1935, t/" L"" G)an +o8 $ator p"rtain"' to No Ha an'No Tian T";. T/" ontrat E8/iit ? 7a! (o)n' t/" r"("r"", to "

)ntr)" an' !i*)lat"', (or #ario)! on#inin r"a!on! t/at n""' nor"p"tition /"r". An' t/" B)ot"' !tat"*"nt! !"r#" ""ti#"l toonr* t/" "#i'"n" (or t/" plainti t/at it 7a! No HaD!r"pr"!"ntation! o( o7n"r!/ip o(, an' r"!pon!iilit (or, L"" G)an +o8$ator t/at in')"' t/"* to op"n r"'it (or t/at on"rn. It *)!t "!tat"' t/at in t/i! onn"tion to an!7"r app"llantD! ttino!"r#ation t/at t/" plainti an' t/" a!!inor! /a#" on!i'"r"'No Ha, t/" 0o'"rn +o8 $ator an' No Ha an' Co. a! on" an't/" !a*", t/ro)/ t/" at! o( t/" partn"r! t/"*!"l#"!, an' t/at t/"proo( a! to No HaD! !tat"*"nt! r"ar'in t/" o7n"r!/ip o( L""G)an +o8 $ator *)!t " ta;"n in t/at #i"7. No Ha 7a! 7ont to!a D/"D o7n"' t/" 0o'"rn +o8 $ator, *"anin t/at /" 7a! t/"

prinipal o7n"r /i! ot/"r partn"r "in No Tian T"; No7 it n""'! ti*" t/i! ation 7a! in!tit)t"' o)r! i! not on" o( t/o!" )ri!'ition!


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prinipal o7n"r, /i! ot/"r partn"r "in No Tian T";. No7, it n""'!no '"*on!tration (or app"llant 'o"! not '"n it t/at t/"oliation! o( t/" L"" G)an +o8 $ator *)!t r"!t )pon it! ;no7no7n"r. An' t/at o7n"r in No Tian T"; an' No Ha.M" *)!t o#"rr)l" p"tition"rD! ont"ntion t/at t/" Co)rt o( App"al!"rr"' in /ol'in t/at L"" G)an +o8 $ator 7a! a !)!i'iar o( t/"0o'"rn +o8 $ator an' in 'i!r"ar'in t/" (at t/at t/" ontrat!"#i'"nin t/" '"t! in B)"!tion 7"r" !in"' %i"nt" Tan alia!C/an S, 7it/o)t an in'iation t/at t"n'"' to in#ol#" t/" 0o'"rn+o8 $ator or t/" p"tition"r. In t/" r!t pla", 7" ar" onl)'"' t/" n'in o( t/" Co)rt o( App"al! r"ar'in t/" o7n"r!/ip t/"p"tition"r o( L"" G)an +o8 $ator. S"on'l, t/" ir)*!tan"! t/at%i"nt" Tan alia! C/an S at"' in /i! o7n na*" annot !a#" t/"p"tition"r, in #i"7 o( !ai' o7n"r!/ip, an' "a)!" ontrat! "nt"r"'into a (ator o( a o**"rial "!tali!/*"nt ;no7n to "lon to a7"ll ;no7n "nt"rpri!" or a!!oiation, !/all " )n'"r!too' a! *a'"(or t/" ao)nt o( t/" o7n"r o( !)/ "nt"rpri!" or a!!oiation, "#"n7/"n t/" (ator /a! not !o !tat"' at t/" ti*" o( "8")tin t/" !a*",pro#i'"' t/at !)/ ontrat! in#ol#" o"t! o*pri!"' in t/" lin"an' )!in"!! o( t/" "!tali!/*"nt.


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G.R. No. L-1?295 J)l 3>, 1962ANG &E CO0AN, ET AL., plainti!-app"llant!,

#!.SECRETAR O$ CO00ERCE AN: IN:&STR, '"("n'ant-app"ll"".$"lii!i*o E. E!aran (or plainti!-app"llant!.O" o( t/" Soliitor G"n"ral (or '"("n'ant-app"ll"".:IYON, J.Ation (or '"larator r"li"( l"' in t/" Co)rt o( $ir!t In!tan" o( Iloilo An )" Co*pan, An )" an' Tan Sion aain!t t/"S"r"tar o( Co**"r" an' In')!tr to !")r" )'*"nt M'"larint/at plainti! o)l' "8t"n' (or #" "ar! t/" t"r* o( t/" partn"r!/ipp)r!)ant to t/" pro#i!ion! o( plainti!D A*"n'*"nt to t/" Artil" o(Co-partn"r!/ip.MT/" an!7"r l"' t/" '"("n'ant all""', in !)!tan", t/at t/"

"8t"n!ion (or anot/"r #" "ar! o( t/" t"r* o( t/" plainti!Dpartn"r!/ip 7o)l' " in #iolation o( t/" pro#i!ion! o( R"p)li At No.11>.It app"ar! t/at on 0a 1, 1953, An )" an' Tan Sion, ot/ C/in"!"iti@"n!, orani@"' t/" partn"r!/ip An )" Co*pan (or a t"r* o(#" "ar! (ro* 0a 1, 1953, "8t"n'il" t/"ir *)t)al on!"nt. T/"p)rpo!" o( t/" partn"r!/ip 7a! Mto *aintain t/" )!in"!! o( "n"ral*"r/an'i!in, )in an' !"llin at 7/ol"!al" an' r"tail,parti)larl o( l)*"r, /ar'7ar" an' ot/"r on!tr)tion *at"rial! (oro**"r", "it/"r nati#" or (or"in.M T/" orr"!pon'in artil"! o(partn"r!/ip 7a! "nat"' to r")lat" t/"r"tail )!in"!!. It pro#i'"', a*on ot/"r t/in!, t/at, a(t"r it!"nat*"nt, a partn"r!/ip not 7/oll (or*"' $ilipino! o)l'ontin)" to "na" in t/" r"tail )!in"!! )ntil t/" "8piration o( it!t"r*.On April 15, 195 prior to t/" "8piration o( t/" #"-"ar t"r* o(t/" partn"r!/ip An )" Co*pan, )t a(t"r t/" "nat*"nt o( t/"R"p)li At 11>, t/" partn"r! alr"a' *"ntion"' a*"n'"' t/"oriinal artil"! o( part o7n"r!/ip annot " a'#"r!"l a"tapp"llant! /"r"in, i! to "rron"o)!l a!!)*" t/at t/" a(or"!ai'pro#i!ion on!tit)t" a prop"rt ri/t o( 7/i/ t/" partn"r! an not "'"pri#"' 7it/o)t ')" pro"!! or 7it/o)t t/"ir on!"nt. T/"ar""*"nt ontain t/"r"in *)!t " '""*"' !)"t to t/" la7"8i!tin at t/" ti*" 7/"n t/" partn"r! a*" to ar"" r"ar'in t/""8t"n!ion. In t/" pr"!"nt a!", a! alr"a' !tat"', 7/"n t/" partn"r!a*"n'"' t/" artil"! o( partn"r!/ip, t/" pro#i!ion! o( R"p)li At11> 7"r" alr"a' in (or", an' t/"r" an " not t/" !li/t"!t 'o)tt/at t/" ri/t lai*"' app"llant! to "8t"n' t/" oriinal t"r* o(t/"ir partn"r!/ip to anot/"r #" "ar! 7o)l' " in #iolation o( t/"l"ar int"nt an' p)rpo!" o( t/" la7 a(or"!ai'.

HERE$ORE, t/" )'*"nt app"al"' (ro* i! ar*"', 7it/ o!t!.

ASC&AL :RAGON %S CIR AN: CTAGRN ?133 Oto"r 1, 19Ganao, J.$ACTS"tition"r! o)/t t7o par"l! o( lan' an' anot/"r 3 par"l! t/"(ollo7in "ar. T/" 2 par"l! 7"r" !ol' in 196 7/il" t/" ot/"r 3

7"r" !ol' in 19?>. R"ali@in prot! (ro* t/" !al", p"tition"r! l"' S"tion 1363


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p , papital ain! ta8. Ho7"#"r, t/" 7"r" a!!"!!"' 7it/ '"i"n ta8(or orporat" ino*" ta8"!.ISS&E/"t/"r or not p"tition"r! (or*"' an )nr"i!t"r"' partn"r!/ipt/"r" a!!"!!"' 7it/ orporat" ino*" ta8.R&LING+ t/" ontrat o( partn"r!/ip, t7o or *or" p"r!on! in' t/"*!"l#"!to ontri)t" *on", in')!tr or prop"rt to a o**on ()n' 7it/ t/"int"ntion o( 'i#i'in prot! a*on t/"*!"l#"!. T/"r" i! no "#i'"n"t/o)/, t/at p"tition"r! "nt"r"' into an ar""*"nt to ontri)t" 0Ito a o**on ()n' an' t/at t/" int"n' to 'i#i'" prot! a*ont/"*!"l#"!. T/" p"tition"r! p)r/a!"' par"l! o( lan' an' "a*"o-o7n"r! t/"r"o(. T/"ir tran!ation! o( !"llin t/" lot! 7"r" i!olat"'a!"!. T/" /arat"r o( /ait)alit p")liar to t/" )!in"!!tran!ation! (or t/" p)rpo!" o( ain 7a! not pr"!"nt.T/" !/arin o( r"t)rn! (o"! not in it!"l( "!tali!/ a partn"r!/ip7/"t/"r or not t/" p"r!on! !/arin t/"r"in /a#" a oint or o**onri/t or int"r"!t in t/" prop"rt. T/"r" *)!t " a l"ar int"nt to (or*partn"r!/ip, t/" "8i!t"n" o( a )ri'ial p"r!onalit 'i"r"nt (ro* t/"in'i#i')al partn"r!, an' t/" (r""'o* o( "a/ part to tran!("r ora!!in t/" 7/ol" prop"rt.

VG.R. No. L-12219. April 25, 1962.W

$RANCISCO ASC&AL, "tition"r, #. THE CO00ISSIONER O$C&STO0S, R"!pon'"nt.

Cl"*"nt" 0. Soriano (or "tition"r.

Soliitor G"n"ral (or R"!pon'"nt.SLLA+&S

1. CENTRAL +ANF %IOLATION O$ CIRC&LAR NO. 44 SHI0ENTS&+JECT TO $OR$EIT&RE &N:ER THE RE%ISE: A:0INISTRATI%ECO:E. Cir)lar No. 44 o( t/" C"ntral +an; 'o"! not pro#i'" (or t/"p"nalt o( (or("it)r" in a!" o( #iolation t/"r"o(, )t t/" !a*" i!!)"t to "n(or"*"nt t/" +)r"a) o( C)!to*! an' a! !)/ i!'""*"' part o( t/" )!to*! la7 )n'"r S"tion 1419 o( t/" R"#i!"'A'*ini!trati#" Co'". It *a, t/"r"(or", " !ai' t/at a !/ip*"nti*port"' in #iolation o( !ai' ir)lar i! !)"t to (or("it)r" )n'"r

< =!p"iall pro#i'"! t/at all *"r/an'i!" i*port"' ontrar to la7 i!!)"t to (or("it)r".

2. I:. I:. :&L ISS&E: CIRC&LAR HAS $ORCE AN: E$$ECT O$ LA. Alt/o)/ t/" ir)lar ')l i!!)"' i! not !tritl a !tat)t" or a la7,it /a!, /o7"#"r, t/" (or" an' ""t o( la7.

3. I:. I:. I0ORTATION O$ 0ERCHAN:ISE ITHO&T RELEASECERTI$ICATE &NISHA+LE &N:ER THE CIRC&LAR. Cir)lar No. 44o( t/" C"ntral +an; p)ni!/"! t/" i*portation o( an *"r/an'i!",7/"t/"r pro/iit"' or ot/"r7i!", i( t/" !a*" i! ""t"' 7it/o)t t/"r"l"a!" "rtiat" i!!)"' !ai' an; or an o( it! a)t/ori@"'a"nt!.

atp cases compilation 1

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