partnership, agency and trust cases

8/18/2019 Partnership, Agency and Trust Cases

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SECOND DIVISION[G.R. No. 102737. August 21, 1996.]

FRANCISCO A. VELOSO, petitioner , vs. COURT OF APPEALS, AGLALOMA B. ESCARIO, assisted by er !sband GREGORIO

L. ESCARIO, te REGISTER OF "EE"S FOR T#E CIT$ OFMA%ILA, respondents.

SYLLABUS1. CIVIL LAW; AGENCY; A SPECIAL POWER OF ATTORNEY CAN BEINCLUDED IN THE GENERAL POWER WHEN IT IS SPECIFIED THEREIN THE ACT OR TRANSACTION FOR WHICH THE SPECIAL POWER ISREQUIRED. — There wa !" !ee# $" e%e&'$e a e(ara$e a!# (e&)a*("wer "+ a$$"r!e, )!&e $he -e!era* ("wer "+ a$$"r!e, ha#e%(re*, a'$h"r)e# $he a-e!$ "r a$$"r!e, )! +a&$ $he ("wer $" e**$he '/0e&$ (r"(er$,. The (e&)a* ("wer "+ a$$"r!e, &a! /e )!&*'#e#)! $he -e!era* ("wer whe! )$ ) (e&)e# $here)! $he a&$ "r$ra!a&$)"! +"r wh)&h $he (e&)a* ("wer ) re2')re#.3. ID.; SALE; PURCHASER IN GOOD FAITH; DEFINED; HIS RE4EDY INCASE OF FRAUD. — I$ ha /ee! &"!)$e!$*, he*# $ha$ a ('r&haer

)! -""# +a)$h ) "!e wh" /', (r"(er$, "+ a!"$her5 w)$h"'$ !"$)&e$ha$ "6e "$her (er"! ha a r)-h$ $"5 "r )!$ere$ )! '&h (r"(er$,a!# (a, a +'** a!# +a)r (r)&e +"r $he a6e5 a$ $he $)6e "+ '&h('r&hae5 "r /e+"re he ha !"$)&e "+ $he &*a)6 "r )!$ere$ "+ "6e"$her (er"! )! $he (r"(er$,. 7The r)-h$ "+ a! )!!"&e!$ ('r&haer +"r8a*'e 6'$ /e re(e&$e# a!# (r"$e&$e#5 e8e! )+ $he e**er "/$a)!e#h) $)$*e $hr"'-h +ra'#. The re6e#, "+ $he (er"! (re0'#)&e# ) $"/r)!- a! a&$)"! +"r #a6a-e a-a)!$ $h"e wh" &a'e# "r e6(*",e#$he +ra'#5 a!# )+ $he *a$$er are )!"*8e!$5 a! a&$)"! a-a)!$ $he Trea'rer "+ $he Ph)*)(()!e 6a, /e *e# +"r re&"8er, "+ #a6a-ea-a)!$ $he A'ra!&e F'!#.79. RE4EDIAL LAW; EVIDENCE; FORGERY CANNOT BE PRESU4ED. —

4ere 8ar)a!&e "+ $he )-!a$'re &a!!"$ /e &"!)#ere# a &"!&*')8e(r""+ $ha$ $he a6e were +"r-e#. F"r-er, &a!!"$ /e (re'6e#.F"r-er, h"'*# /e (r"8e# /, &*ear a!# &"!8)!&)!- e8)#e!&e a!#wh"e8er a**e-e )$ ha $he /'r#e! "+ (r"8)!- $he a6e.:. ID.; ID.; NOTARIED DOCU4ENTS ARE PRESU4ED TO BE VALIDAND DULY E. CIVIL LAW; PRINCIPLE OF EQUITABLE ESTOPPEL5 DEFINED. — The(r)!&)(*e "+ e2')$a/*e e$"((e* $a$e $ha$ where "!e "r $w"

)!!"&e!$ (er"! 6'$ '?er a *"5 he wh" /, h) &"!#'&$ 6a#e$he *" (")/*e 6'$ /ear )$.

D E C I S I O N TORRES5 @R.5 J ( Th) (e$)$)"! +"r re8)ew aa)* $he #e&))"! "+ $he C"'r$ "+ A((ea*5#a$e# @'*, 35 115 $he #)(")$)8e ("r$)"! "+ wh)&h rea#7WHEREFORE5 $he #e&))"! a((ea*e# +r"6 ) here/, AFFIR4ED INTOTO. C"$ a-a)!$ a((e**a!$.7 1 The +"**"w)!- are $he a!$e&e#e!$ +a&$

Pe$)$)"!er Fra!&)&" Ve*"" wa $he "w!er "+ a (ar&e* "+ *a!#)$'a$e# )! $he #)$r)&$ "+ T"!#"5 4a!)*a5 w)$h a! area "+ "!eh'!#re# e8e!$, e8e! 1 2'are 6e$er a!# &"8ere# /, Tra!+er Cer$)&a$e "+ $)$*e N". :19 )'e# /, $he Re-)$r, "+ Dee# "+ 4a!)*a. 3 The $)$*e wa re-)$ere# )! $he !a6e "+ Fra!&)&"A. Ve*""5 )!-*e5 9 "! O&$"/er :5 1>. : The a)# $)$*e wa'/e2'e!$*, &a!&e**e# a!# a !ew "!e5 Tra!+er Cer$)&a$e "+ T)$*eN". 1>5 wa )'e# )! $he !a6e "+ A-*a*"6a B. E&ar)"56arr)e# $" Gre-"r)" L. E&ar)"5 "! 4a, 3:5 1. >O! A'-'$ 3:5 15 (e$)$)"!er Ve*"" *e# a! a&$)"! +"r a!!'*6e!$"+ #"&'6e!$5 re&"!8e,a!&e "+ (r"(er$, w)$h #a6a-e a!#(re*)6)!ar, )!0'!&$)"! a!#"r re$ra)!)!- "r#er. The &"6(*a)!$5

#"&=e$e# a C)8)* Cae !". J:>35 wa raKe# $" $he Re-)"!a* Tr)a* C"'r$5 Bra!&h :>5 4a!)*a. Pe$)$)"!er a**e-e# $here)! $ha$ hewa $he a/"*'$e "w!er "+ $he '/0e&$ (r"(er$, a!# he !e8era'$h"r)e# a!,/"#,5 !"$ e8e! h) w)+e5 $" e** )$. He a**e-e# $ha$ hewa )! ("e)"! "+ $he $)$*e /'$ whe! h) w)+e5 Ir6a5 *e+$ +"ra/r"a#5 he +"'!# "'$ $ha$ h) &"(, wa 6))!-. He $he! 8er)e#w)$h $he Re-)$r, "+ Dee# "+ 4a!)*a a!# $here he #)&"8ere# $ha$h) $)$*e wa a*rea#, &a!&e*e# )! +a8"r "+ #e+e!#a!$ A-*a*"6aE&ar)". The $ra!+er "+ (r"(er$, wa '(("r$e# /, a Ge!era* P"wer"+ A$$"r!e, #a$e# N"8e6/er 35 1> a!# Dee# "+ A/"*'$e Sa*e5#a$e# N"8e6/er 35 15 e%e&'$e# /, Ir6a Ve*""5 w)+e "+ $he(e$)$)"!er a!# a((ear)!- a h) a$$"r!e,J)!J+a&$5 a!# #e+e!#a!$

A-*a*"6a E&ar)". Pe$)$)"!er Ve*""5 h"we8er5 #e!)e# ha8)!-e%e&'$e# $he ("wer "+ a$$"r!e, a!# a**e-e# $ha$ h) )-!a$'re wa+a*)e#. He a*" #e!)e# ha8)!- ee! "r e8e! =!"w! R"e6ar)eRe,e a!# I6e*#a Sa!$"5 $he '(("e# w)$!ee )! $he e%e&'$)"!"+ $he ("wer "+ a$$"r!e,. He 8ehe6e!$*, #e!)e# ha8)!- 6e$ "r$ra!a&$e# w)$h $he #e+e!#a!$. Th'5 he &"!$e!#e# $ha$ $he a*e "+ $he (r"(er$,5 a!# $he '/e2'e!$ $ra!+er $here"+5 were !'** a!#8")#. Pe$)$)"!er Ve*""5 $here+"re5 (ra,e# $ha$ a $e6("rar,re$ra)!)!- "r#er /e )'e# $" (re8e!$ $he $ra!+er "+ $he '/0e&$(r"(er$,; $ha$ $he Ge!era* P"wer "+ A$$"r!e,5 $he Dee# "+ A/"*'$eSa*e a!# $he Tra!+er Cer$)&a$e "+ T)$*e N". 1> /e a!!'**e#;a!# $he '/0e&$ (r"(er$, /e re&"!8e,e# $" h)6.

De+e!#a!$ A-*a*"6a E&ar)" )! her a!wer a**e-e# $ha$ he wa a/',er )! -""# +a)$h a!# #e!)e# a!, =!"w*e#-e "+ $he a**e-e#

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)rre-'*ar)$,. She a**e-e#*, re*)e# "! $he -e!era* ("wer "+ a$$"r!e, "+ Ir6a Ve*"" wh)&h wa '&)e!$ )! +"r6 a!# '/$a!&e a!# wa#'*, !"$ar)e#. She &"!$e!#e# $ha$ (*a)!$)? here)! (e$)$)"!er5 ha#!" &a'e "+ a&$)"! a-a)!$ her. I! ee=)!- +"r $he #e&*ara$)"! "+ !'**)$, "+ $he #"&'6e!$5 $he rea* (ar$, )! )!$ere$ wa Ir6a Ve*""5$he w)+e "+ $he (*a)!$)?. She h"'*# ha8e /ee! )6(*ea#e# )! $he&ae. I! +a&$5 P*a)!$)?M &a'e "+ a&$)"! h"'*# ha8e /ee! a-a)!$ h)

w)+e5 Ir6a. C"!e2'e!$*,5 #e+e!#a!$ E&ar)" (ra,e# +"r $he#)6)a* "+ $he &"6(*a)!$ a!# $he (a,6e!$ $" her "+ #a6a-e. PreJ$r)a* wa &"!#'&$e#. The "*e )'e $" /e re"*8e# /, $he $r)a*&"'r$ wa whe$her "r !"$ $here wa a 8a*)# a*e "+ $he '/0e&$(r"(er$,. D'r)!- $he $r)a*5 (*a)!$)? here)! (e$)$)"!er Fra!&)&" Ve*""$e$)e# $ha$ he a&2')re# $he '/0e&$ (r"(er$, +r"6 $he Ph)*)(()!eB')*#)!- C"r("ra$)"!5 a e8)#e!&e# /, a Dee# "+ Sa*e #a$e#O&$"/er 15 1>. 1 He 6arr)e# Ir6a Laa$)! "! @a!'ar, 35 13.11 He!&e5 $he (r"(er$, #)# !"$ /e*"!- $" $he)r &"!0'-a* (ar$!erh)(.P*a)!$)? +'r$her aer$e# $ha$ he #)# !"$ )-! $he ("wer "+ a$$"r!e,a!# a (r""+ $ha$ h) )-!a$'re wa +a*)e#5 he (ree!$e# A**)e#

Ba!= Che&= N". 19::5 19::1 a!# 19::95 wh)&ha**e-e#*, /"re h) -e!')!e )-!a$'re.W)$!e +"r $he (*a)!$)? A$$,. @'*)a! G. T'/)- #e!)e# a!, (ar$)&)(a$)"!)! $he e%e&'$)"! "+ $he -e!era* ("wer "+ a$$"r!e,. He a$$e$e# $ha$he #)# !"$ )-! $here"!5 a!# $he a6e wa !e8er e!$ere# )! h)N"$ar)a* Re-)$er "! N"8e6/er 35 1>.I! $he #e&))"! "+ $he $r)a* &"'r$ #a$e# 4ar&h 5 15 13 #e+e!#a!$A-*a*"6a E&ar)" wa a#0'#-e# $he *aw+'* "w!er "+ $he (r"(er$, ahe wa #ee6e# a! )!!"&e!$ ('r&haer +"r 8a*'e. The aa)*e#-e!era* ("wer "+ a$$"r!e, wa he*# $" /e 8a*)# a!# '&)e!$ +"r $he('r("e. The $r)a* &"'r$ r'*e# $ha$ $here wa !" !ee# +"r a (e&)a*("wer "+ a$$"r!e, whe! $he (e&)a* ("wer wa a*rea#, 6e!$)"!e#

)! $he -e!era* "!e. I$ a*" #e&*are# $ha$ (*a)!$)? +a)*e# $"'/$a!$)a$e h) a**e-a$)"! "+ +ra'#. The &"'r$ a*" $ree# $ha$(*a)!$)? wa !"$ e!$)re*, /*a6e*e +"r a*$h"'-h he a#6)$$e# $" /e$he "!*, (er"! wh" ha# a&&e $" $he $)$*e a!# "$her )6("r$a!$#"&'6e!$5 h) w)+e wa $)** a/*e $" ("e $he &"(,. C)$)!- Se&$)"!>> "+ A&$ :5 $he &"'r$ he*# $ha$ Ir6aM ("e)"! a!# (r"#'&$)"!"+ $he &er$)&a$e "+ $)$*e wa #ee6e# a &"!&*')8e a'$h"r)$, +r"6$he (*a)!$)? $" $he Re-)$er "+ Dee# $" e!$er a !ew &er$)&a$e. The! a((*,)!- $he (r)!&)(*e "+ e2')$a/*e e$"((e*5 (*a)!$)? wa he*#$" /ear $he *" "+ )$ wa he wh" 6a#e $he wr"!- (")/*e. Th'7WHEREFORE5 $he C"'r$ !# +"r $he #e+e!#a!$ a!# a-a)!$(*a)!$)? —

a. #e&*ar)!- $ha$ $here wa a 8a*)# a*e "+ $he '/0e&$ (r"(er$, )!+a8"r "+ $he #e+e!#a!$;

/. #e!,)!- a** "$her &*a)6 "+ $he (ar$)e +"r wa!$ "+ *e-a* a!#+a&$'a* /a).W)$h"'$ (r"!"'!&e6e!$ a $" &"$.SO ORDERED.7N"$ a$)e# w)$h $he #e&))"!5 (e$)$)"!er Ve*"" *e# h) a((ea*w)$h $he C"'r$ "+ A((ea*. The re("!#e!$ &"'r$ ar6e# )! $"$" $he!#)!- "+ $he $r)a* &"'r$.

He!&e5 $h) (e$)$)"! +"r re8)ew /e+"re U. Th) (e$)$)"! +"r re8)ew wa )!)$)a**, #)6)e# +"r +a)*'re $" '/6)$a! a#a8)$ "+ er8)&e "+ a &"(, "+ $he (e$)$)"! "! $he &"'!e* +"r(r)8a$e re("!#e!$. 19 A 6"$)"! +"r re&"!)#era$)"! "+ $here"*'$)"! wa *e# /'$ )$ wa #e!)e# )! a re"*'$)"! #a$e# 4ar&h95 13. 1: A e&"!# 6"$)"! +"r re&"!)#era$)"! wa *e# a!# )! are"*'$)"! #a$e# A'-. 95 135 $he 6"$)"! wa -ra!$e# a!# $he(e$)$)"! +"r re8)ew wa re)!$a$e#. 1>A '((*e6e!$a* (e$)$)"! wa *e# "! O&$"/er 5 13 w)$h $he+"**"w)!- a)-!6e!$ "+ err"rI The C"'r$ "+ A((ea* &"66)$$e# a -ra8e err"r )! !"$ !#)!- $ha$

$he +"r-er, "+ $he ("wer "+ a$$"r!e, E%h. 7C7 ha# /ee!a#e2'a$e*, (r"8e!5 #e()$e $he (re("!#era!$ e8)#e!&e5 a!# )!#")!- "5 )$ ha " +ar #e(ar$e# +r"6 $he a((*)&a/*e (r"8))"! "+ *aw a!# $he #e&))"! "+ $h) H"!"ra/*e C"'r$5 a $" warra!$ $he-ra!$ "+ $h) (e$)$)"! +"r re8)ew "! &er$)"rar).II There are (r)!&)(*e "+ 0'$)&e a!# e2')$, $ha$ warra!$ a re8)ew "+ $he #e&))"!.III The C"'r$ "+ A((ea* erre# )! ar6)!- $he #e&))"! "+ $he $r)a*&"'r$ wh)&h 6)a((*)e# $he (r)!&)(*e "+ e2')$a/*e e$"((e* )!&e $he(e$)$)"!er #)# !"$ +a)* )! h) #'$, "+ "/er8)!- #'e #)*)-e!&e )! $he

a+e=ee()!- "+ $he $)$*e $" $he (r"(er$,.We !# (e$)$)"!erM &"!$e!$)"! !"$ 6er)$"r)"'.A! e%a6)!a$)"! "+ $he re&"r# h"we# $ha$ $he aa)*e# ("wer "+ a$$"r!e, wa 8a*)# a!# re-'*ar "! )$ +a&e. I$ wa !"$ar)e# a!# a'&h5 )$ &arr)e $he e8)#e!$)ar, we)-h$ &"!+erre# '("! )$ w)$hre(e&$ $" )$ #'e e%e&'$)"!. Wh)*e )$ ) $r'e $ha$ )$ wa#e!"6)!a$e# a a -e!era* ("wer "+ a$$"r!e,5 a (er'a* $here"+ re8ea*e# $ha$ )$ $a$e# a! a'$h"r)$, $" e**5 $" w)$ 73. T" /', "r e**5 h)re "r *eae5 6"r$-a-e "r "$herw)e h,("$he&a$e*a!#5 $e!e6e!$ a!# here#)$a6e!$ "r "$her +"r6 "+ rea*(r"(er$,5 6"re (e&)&a**, TCT N". :195 '("! '&h $er6 a!#

&"!#)$)"! a!# '!#er '&h &"8e!a!$ a 6, a)# a$$"r!e, ha**#ee6 $ a!# (r"(er.7 1

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Th'5 $here wa !" !ee# $" e%e&'$e a e(ara$e a!# (e&)a* ("wer"+ a$$"r!e, )!&e $he -e!era* ("wer "+ a$$"r!e, ha# e%(re*,a'$h"r)e# $he a-e!$ "r a$$"r!e, )! +a&$ $he ("wer $" e** $he'/0e&$ (r"(er$,. The (e&)a* ("wer "+ a$$"r!e, &a! /e )!&*'#e# )!$he -e!era* ("wer whe! )$ ) (e&)e# $here)! $he a&$ "r $ra!a&$)"!+"r wh)&h $he (e&)a* ("wer ) re2')re#. The -e!era* ("wer "+ a$$"r!e, wa a&&e($e# /, $he Re-)$er "+

Dee# whe! $he $)$*e $" $he '/0e&$ (r"(er$, wa &a!&e**e# a!#$ra!+erre# )! $he !a6e "+ (r)8a$e re("!#e!$. I! LRC C"!'*$a N".1395 Re-)$er "+ Dee# "+ A*/a,5 N"8. 15 1>5 )$ $a$e# $ha$7Whe$her $he )!$r'6e!$ /e #e!"6)!a$e# a 7-e!era* ("wer "+ a$$"r!e,7 "r 7(e&)a* ("wer "+ a$$"r!e,57 wha$ 6a$$er ) $he e%$e!$"+ $he ("wer "r ("wer &"!$e6(*a$e# '("! $he a-e!$ "r a$$"r!e, )!+a&$. I+ $he ("wer ) &"'&he# )! -e!era* $er65 $he! '&h ("wer&a!!"$ -" /e,"!# a&$ "+ a#6)!)$ra$)"!. H"we8er5 where $he("wer $" e** ) (e&)&5 )$ !"$ /e)!- 6ere*, )6(*)e#5 6'&h *e&"'&he# )! -e!era* $er65 $here &a! !"$ /e a!, #"'/$ $ha$ $hea$$"r!e, )! +a&$ 6a, e%e&'$e a 8a*)# a*e. A! )!$r'6e!$ 6a, /e&a($)"!e# a 7(e&)a* ("wer "+ a$$"r!e,7 /'$ )+ $he ("wer -ra!$e#

are &"'&he# )! -e!era* $er6 w)$h"'$ 6e!$)"!)!- a!, (e&)&("wer $" e** "r 6"r$-a-e "r $" #" "$her (e&)& a&$ "+ $r)&$#"6)!)"!5 $he! )! $ha$ &ae "!*, a&$ "+ a#6)!)$ra$)"! 6a, /e#ee6e# &"!+erre#.7Pe$)$)"!er &"!$e!# $ha$ h) )-!a$'re "! $he ("wer "+ a$$"r!e, wa+a*)e#. He a*" a**e-e $ha$ $he a6e wa !"$ #'*, !"$ar)e# +"ra $e$)e# /, A$$,. T'/)- h)6e*+5 he #)# !"$ )-! $here"! !"r wa )$e8er re&"r#e# )! h) !"$ar)a* re-)$er. T" /"*$er h) ar-'6e!$5(e$)$)"!er ha# (ree!$e# &he&=5 6arr)a-e &er$)&a$e a!# h)re)#e!&e &er$)&a$e $" (r"8e h) a**e-e# -e!')!e )-!a$'re wh)&hwhe! &"6(are# $" $he )-!a$'re )! $he ("wer "+ a$$"r!e,5 h"we#"6e #)?ere!&e.

We +"'!#5 h"we8er5 $ha$ $he /a) (ree!$e# /, $he (e$)$)"!er wa)!a#e2'a$e $" '$a)! h) a**e-a$)"! "+ +"r-er,. 4ere 8ar)a!&e "+ $he)-!a$'re &a!!"$ /e &"!)#ere# a &"!&*')8e (r""+ $ha$ $he a6ewere +"r-e#. F"r-er, &a!!"$ /e (re'6e#. 1 Pe$)$)"!er5 h"we8er5+a)*e# $" (r"8e h) a**e-a$)"! a!# )6(*, re*)e# "! $he a((are!$#)?ere!&e "+ $he )-!a$'re. H) #e!)a* ha# !"$ e$a/*)he# $ha$ $he)-!a$'re "! $he ("wer "+ a$$"r!e, wa !"$ h).We a-ree w)$h $he &"!&*')"! "+ $he *"wer &"'r$ $ha$ (r)8a$ere("!#e!$ wa a! )!!"&e!$ ('r&haer +"r 8a*'e. Re("!#e!$A-*a*"6a re*)e# "! $he ("wer "+ a$$"r!e, (ree!$e# /, (e$)$)"!erMw)+e5 Ir6a. Be)!- $he w)+e "+ $he "w!er a!# ha8)!- w)$h her $he $)$*e"+ $he (r"(er$,5 $here wa !" rea"! +"r $he (r)8a$e re("!#e!$ !"$

$" /e*)e8e5 )! her a'$h"r)$,. 4"re"8er5 $he ("wer "+ a$$"r!e, wa!"$ar)e# a!# a '&h5 &arr)e# w)$h )$ $he (re'6($)"! "+ )$ #'e

e%e&'$)"!. Th'5 ha8)!- ha# !" )!=*)!- "! a!, )rre-'*ar)$, a!#ha8)!- !" (ar$)&)(a$)"! $here"+5 (r)8a$e re("!#e!$ wa a /',er )!-""# +a)$h. I$ ha /ee! &"!)$e!$*, he*# $ha$ a ('r&haer )! -""#+a)$h ) "!e wh" /', (r"(er$, "+ a!"$her5 w)$h"'$ !"$)&e $ha$ "6e"$her (er"! ha a r)-h$ $"5 "r )!$ere$ )! '&h (r"(er$, a!# (a, a+'** a!# +a)r (r)&e +"r $he a6e5 a$ $he $)6e "+ '&h ('r&hae5 "r/e+"re he ha !"$)&e "+ $he &*a)6 "r )!$ere$ "+ "6e "$her (er"!

)! $he (r"(er$,. 1D"&'6e!$ a&=!"w*e#-e# /e+"re a !"$ar, ('/*)& ha8e $hee8)#e!$)ar, we)-h$ w)$h re(e&$ $" $he)r #'e e%e&'$)"!. The2'e$)"!e# ("wer "+ a$$"r!e, a!# #ee# "+ a*e5 were !"$ar)e# a!#$here+"re5 (re'6e# $" /e 8a*)# a!# #'*, e%e&'$e#. A$$,. T'/)-#e!)e# ha8)!- !"$ar)e# $he a)# #"&'6e!$ a!# a**e-e# $ha$ h))-!a$'re ha# a*" /ee! +a*)e#. He (ree!$e# a6(*e "+ h))-!a$'re $" (r"8e h) &"!$e!$)"!. F"r-er, h"'*# /e (r"8e# /,&*ear a!# &"!8)!&)!- e8)#e!&e a!# wh"e8er a**e-e )$ ha $he/'r#e! "+ (r"8)!- $he a6e. @'$ *)=e $he (e$)$)"!er5 w)$!e A$$,. T'/)- 6ere*, (")!$e# "'$ $ha$ h) )-!a$'re wa #)?ere!$ +r"6 $ha$)! $he ("wer "+ a$$"r!e, a!# #ee# "+ a*e. There ha# !e8er /ee! a!

a&&'ra$e e%a6)!a$)"! "+ $he )-!a$'re5 e8e! $ha$ "+ $he (e$)$)"!er. T" #e$er6)!e +"r-er,5 )$ wa he*# )! Cear 8. Sa!#)-a!/a,a! 12'"$)!- O/"r!5 The Pr"/*e6 "+ Pr""+ $ha$7The (r"&e "+ )#e!$)&a$)"!5 $here+"re5 6'$ )!&*'#e $he#e$er6)!a$)"! "+ $he e%$e!$5 =)!#5 a!# )-!)&a!&e "+ $h)ree6/*a!&e a we** a "+ $he 8ar)a$)"!. I$ $he! /e&"6e !e&ear,$" #e$er6)!e whe$her $he 8ar)a$)"! ) #'e $" $he "(era$)"! "+ a#)?ere!$ (er"!a*)$,5 "r ) "!*, $he e%(e&$e# a!# )!e8)$a/*e8ar)a$)"! +"'!# )! $he -e!')!e wr)$)!- "+ $he a6e wr)$er. I$ ) a*"!e&ear, $" #e&)#e whe$her $he ree6/*a!&e ) $he re'*$ "+ a6"re "r *e =)**+'* )6)$a$)"!5 "r ) $he ha/)$'a* a!# &hara&$er)$)&ree6/*a!&e wh)&h !a$'ra**, a((ear )! a -e!')!e wr)$)!-. Whe!

$hee $w" 2'e$)"! are &"rre&$*, a!were# $he wh"*e (r"/*e6 "+ )#e!$)&a$)"! ) "*8e#.7E8e! -ra!$)!- +"r $he a=e "+ ar-'6e!$5 $ha$ $he (e$)$)"!erM)-!a$'re wa +a*)e# a!# &"!e2'e!$*,5 $he ("wer "+ a$$"r!e, a!#$he #ee# "+ a*e were !'** a!# 8")#5 '&h +a&$ w"'*# !"$ re8"=e $he$)$*e '/e2'e!$*, )'e# )! +a8"r "+ (r)8a$e re("!#e!$ A-*a*"6a.I! Te!)"JO/e2')" 8. C"'r$ "+ A((ea*5 3 )$ wa he*#5 viz 7The r)-h$ "+ a! )!!"&e!$ ('r&haer +"r 8a*'e 6'$ /e re(e&$e#a!# (r"$e&$e#5 e8e! )+ $he e**er "/$a)!e# h) $)$*e $hr"'-h +ra'#. The re6e#, "+ $he (er"! (re0'#)&e# ) $" /r)!- a! a&$)"! +"r#a6a-e a-a)!$ $h"e wh" &a'e# "r e6(*",e# $he +ra'#5 a!# )+ $he *a$$er are )!"*8e!$5 a! a&$)"! a-a)!$ $he Trea'rer "+ $he

Ph)*)(()!e 6a, /e *e# +"r re&"8er, "+ #a6a-e a-a)!$ $heA'ra!&e F'!#.7

9


4/71

F)!a**,5 $he $r)a* &"'r$ #)# !"$ err )! a((*,)!- e2')$a/*e e$"((e* )!$h) &ae. The (r)!&)(*e "+ e2')$a/*e e$"((e* $a$e $ha$ where "!e"r $w" )!!"&e!$ (er"! 6'$ '?er a *"5 he wh" /, h) &"!#'&$6a#e $he *" (")/*e 6'$ /ear )$. Fr"6 $he e8)#e!&e a##'&e#5 )$h"'*# /e $he (e$)$)"!er wh" h"'*# /ear $he *". A $he &"'r$ a2'" +"'!#7Be)#e5 $he re&"r# "+ $h) &ae #)&*"e# $ha$ $he (*a)!$)? ) !"$

e!$)re*, +ree +r"6 /*a6e. He a#6)$$e# $ha$ he ) $he "*e (er"!wh" ha a&&e $" TCT N". :19 a!# "$her #"&'6e!$a((er$a)!)!- $here$" TSN5 4a, 395 15 ((. J13. H"we8er5 $he+a&$ re6a)! $ha$ $he Cer$)&a$e "+ T)$*e5 a we** a "$her #"&'6e!$!e&ear, +"r $he $ra!+er "+ $)$*e were )! $he ("e)"! "+ (*a)!$)?M w)+e5 Ir6a L. Ve*""5 &"!e2'e!$*, *ea8)!- !" #"'/$ "ra!, '()&)"! "! $he (ar$ "+ $he #e+e!#a!$ a $" her a'$h"r)$,.U!#er Se&$)"! >> "+ A&$ :5 a a6e!#e#5 Ir6aM ("e)"! a!#(r"#'&$)"! "+ $he Cer$)&a$e "+ T)$*e $" #e+e!#a!$ "(era$e# a7&"!&*')8e a'$h"r)$, +r"6 $he (*a)!$)? $" $he Re-)$er "+ Dee# $"e!$er a !ew &er$)&a$e.7 31C"!)#er)!- $he +"re-")!- (re6)e5 we +"'!# !" err"r )! $he

a((re&)a$)"! "+ +a&$ a!# a((*)&a$)"! "+ *aw /, $he *"wer &"'r$wh)&h w)** warra!$ $he re8era* "r 6"#)&a$)"! "+ $he a((ea*e##e&))"!.ACCORDINGLY5 $he (e$)$)"! +"r re8)ew ) here/, DENIED +"r *a&= "+ 6er)$.SO ORDERED.

TIRD DIVISION[G.R. No. 173312. August 26, 200!.]

ESTATE OF LINO OLAG"ER, R#$%#s#&t#' () L*&'+ O.O+gu#%, +&' LINDA O. -ONTARE, petitioners, vs. E-ILIANO

-. ONG/OCO, respondent .

D E C I S I O NCHICOJNAARIO5 J (Aa)*e# )! $h) Pe$)$)"! +"r Re8)ew "! Certiorari 1 ) $he De&))"! 3"+ $he C"'r$ "+ A((ea* #a$e# 3 Fe/r'ar, 3 )! CAJG.R. CV N".11. Sa)# #e&))"! 6"#)e# $he De&))"! 9 a!# $he '/e2'e!$Or#er : "+ $he Re-)"!a* Tr)a* C"'r$ RTC "+ Le-a() C)$,5 Bra!&h 5)! C)8)* Cae N". 3395 a!# '(he*# $he 8a*)#)$, "+ $he a*e "+ (r"(er$)e $" re("!#e!$ E6)*)a!" 4. O!-0"&". The re*e8a!$ +a&$'a* a!$e&e#e!$ "+ $he &ae5 a +"'!# /, $he $r)a*&"'r$ a!# a#a($e# /, $he C"'r$ "+ A((ea*5 are a +"**"w CHDAE& The (*a)!$)? S"r 4ar, E#)$h O*a-'er5 A'r"ra O. #e G'6a!5C*ar)a O. Tr)!)#a#5 L)!a O*a-'er a!# 4a. L)!#a O. 4"!$a,re are

$he *e-)$)6a$e &h)*#re! "+ $he ("'e L)!" O*a-'er a!# #e+e!#a!$O*)8)a P. O*a-'er.

L)!" O*a-'er #)e# "! O&$"/er 95 1> " S(e&)a* Pr"&ee#)!- N".>3 +"r (r"/a$e "+ w)** wa *e# )! $he $he! C"'r$ "+ F)r$ I!$a!&e "+ A*/a,. De+e!#a!$ O*)8)a P. O*a-'er wa a((")!$e# a a#6)!)$ra$"r('r'a!$ $" $he w)**. La$er5 #e+e!#a!$ E#'ar#" O*a-'er waa((")!$e# a &"Ja#6)!)$ra$"r. . . .O! O&$"/er 1>5 1> #e+e!#a!$ O*)8)a P. O*a-'er -"$ 6arr)e# $"#e+e!#a!$ @"e A. O*a-'er /e+"re $he $he! @'$)&e "+ $he Pea&e "+

S$". D"6)!-" L)/"- A*/a,. E%h)/)$ 7NNNN7 O! @a!'ar, 3:5 1>$he, were 6arr)e# )! &h'r&h. E%h)/)$ 715 :>35 :9>5 >5 >1:5 5 >35 1>55 15 35 a!# w)$h a $"$a* area "+ he&$are. E%h)/)$7A7 — Dee# "+ Sa*e !"$ar)e# /, #e+e!#a!$ @"e A. O*a-'er Th) a*e "+ $we*8e 13 (ar&e* "+ *a!# $" Pa$"r Ba&a!) waa((r"8e# /, $he Pr"/a$e C"'r$ "! De&e6/er 135 13. E%h)/)$

71>7 The +"**"w)!- #a,5 De&e6/er 195 135 Pa$"r Ba&a!) "*# /a&= $"E#'ar#" O*a-'er a!# O*)8)a O*a-'er +"r P135. Pe"5 "!e "+ $he $we*8e 13 *"$ he /"'-h$ $he #a, /e+"re5 (ar$)&'*ar*,5 L"$ N". )! $he (r"("r$)"! "+ 19 a!# 19 (r"J)!#)8)" re(e&$)8e*,.E%h)/)$ 7B7 — Dee# "+ Sa*e !"$ar)e# /, Fe*)(e A. Ce8a**"5 Sr.DHaECIS)6'*$a!e"'*,5 "! $he a6e #a, De&e6/er 195 135 Pa$"rBa&a!) "*# /a&= $" O*)8)a O*a-'er a!# E#'ar#" O*a-'er $he "$here*e8e! 11 (ar&e* he /"'-h$ +r"6 $he6 a +"**"w T" O*)8)a O*a-'er — F"'r : (ar&e* +"r 15 Pe"5 (ar$)&'*ar*,L"$ :>15 :>35 :9>5 > w)$h a $"$a* area "+ : he&$are.

E%h)/)$ 7E7 — Dee# "+ Sa*e !"$ar)e# /, Fe*)(e A. Ce8a**"5 Sr. T" E#'ar#" O*a-'er — Se8e! (ar&e* "+ *a!# +"r 35> Pe"5(ar$)&'*ar*, L"$ >1:5 5 >35 1>5 5 15 a!# 3w)$h a $"$a* area "+ 1> he&$are. E%h)/)$ 7C7 — Dee# "+ Sa*e!"$ar)e# /, #e+e!#a!$ @"e A. O*a-'erRe*,)!- '("! $he a6e "r#er "+ A(r)* :5 11 /'$ w)$h"'$ (r)"r!"$)&e "r (er6))"! +r"6 $he Pr"/a$e C"'r$5 #e+e!#a!$ O*)8)a P.O*a-'er a!# E#'ar#" O*a-'er "! N"8e6/er 15 1> "*# $"E$a!)*a" O*a-'er +"r 5 Pe"5 $e! 1 (ar&e* "+ *a!#5(ar$)&'*ar*,5 a TCT N". TJ:11 — L"$ N". >5 / TCT N". TJ1:1— L"$ N". 1>>5 & TCT N". TJ:91 — L"$ N". 15 # TCT N". TJ:9: — L"$ N". :>315 e TCT N". TJ:9> — L"$ N". :>335 + TCT

N". :19 — L"$ N". 9>5 - TCT N". TJ:1: — L"$ 95 h TCTN". TJ:9 — L"$ N". >5 ) TCT N". :: — L"$ N". >95 a!# 0

:


5/71

TCT N". TJ:> — L"$ N". 9. E%h)/)$ 7D7 — Dee# "+ Sa*e!"$ar)e# /, R"#r)-" R. Rea!$a" DIST&H Th) a*e $" E$a!)*a" O*a-'er wa a((r"8e# /, $he Pr"/a$e C"'r$"! N"8e6/er 135 1>.A+$er $he +"re-")!- a*e $" E$a!)*a" O*a-'er5 $he +"**"w)!-$ra!a&$)"! $""= (*a&e1 O! @'*, 5 15 #e+e!#a!$ O*)8)a P. O*a-'er e%e&'$e# a S(e&)a*

P"wer "+ A$$"r!e, !"$ar)e# /, R"#r)-" R. Rea!$a" E%h)/)$ 7T7 )!+a8"r "+ #e+e!#a!$ @"e A. O*a-'er5 a'$h"r))!- $he *a$$er $" 7e**56"r$-a-e5 a)-!5 $ra!+er5 e!#"re a!# #e*)8er7 $he (r"(er$)e&"8ere# /, TCT N". 1:>: +"r L"$ 19 hare "!*,5 TJ1995 TJ1:>5 TJ1:>>5 TJ1:>5 a!# TJ1:>.3 O! @'*, 5 15 E$a!)*a" O*a-'er e%e&'$e# a S(e&)a* P"wer "+ A$$"r!e, )! +a8"r "+ @"e A. O*a-'er E%h)/)$ 75 >9 a!# 9 $" #e+e!#a!$ Ph)*)(()!e Na$)"!a* Ba!= PNBa e&'r)$, +"r a *"a! "+ 15 Pe". The 6"r$-a-e wa+"re&*"e# /, $he PNB "! @'!e 195 19 a!# $he (r"(er$)e6"r$-a-e were "*# a$ ('/*)& a'&$)"! $" PNB. O! De&e6/er 1515 $he PNB $ra!+erre# $he (r"(er$)e $" $he Re('/*)& "+ $hePh)*)(()!e ('r'a!$ $" E%e&. Or#er N". : #a$e# @'!e 1:5 1 +"ra-rar)a! re+"r6 ('r("e. re&"r#5 8"*. 15 (a-e SAHID&9 O! O&$"/er 35 15 E$a!)*a" O*a-'er e%e&'$e# a Ge!era*P"wer "+ A$$"r!e, !"$ar)e# /, R"#r)-" R. Rea!$a" E%h)/)$ 7Y7 )!+a8"r "+ @"e A. O*a-'er5 a'$h"r))!- $he *a$$er $" e%er&)e -e!era*&"!$r"* a!# '(er8))"! "8er a** "+ h) /')!e a!# (r"(er$)e5 a!#

a6"!- "$her5 $" e** "r 6"r$-a-e a!, "+ h) (r"(er$)e.: O! De&e6/er 35 15 E$a!)*a" O*a-'er "*# $" @"e A.O*a-'er +"r 1>5 Pe"5 E%h)/)$ 7UU7 $he $e! 1 (ar&e* "+ *a!#L"$ >5 :>315 :>335 1>>5 15 9>5 95 >5 >9 a!#9 he /"'-h$ +r"6 O*)8)a P. O*a-'er a!# E#'ar#" O*a-'er '!#erE%h)/)$ 7D7.> O! 4ar&h 15 15 E$a!)*a" O*a-'er "*# $" @"e A. O*a-'er+"r 1 Pe" a!# "$her 8a*'a/*e &"!)#era$)"! L"$ N". :>31 — TCT N". TJ3339 a!# L"$ :>33 — TCT N". 333: w)$h a $"$a* area "+ 3.>he&$are. re&"r#5 8"*. 15 (a-e 99 O! @'!e >5 15 E$a!)*a" O*a-'er "*# L"$ N". 9> '!#er TCTN". TJ333>5 a!# L"$ N". 9 '!#er TCT N". 333 $" @"e A.

O*a-'er +"r 1 Pe" a!# "$her 8a*'a/*e &"!)#era$)"!. E%h)/)$ 7F7Dee# "+ Sa*e wa !"$ar)e# /, R"#r)-" R. Rea!$a". E&TIDA

O! 4a, 195 115 @"e A. O*a-'er )! h) &a(a&)$, a A$$"r!e, )!JFa&$ "+ E$a!)*a" O*a-'er "*# $" h) "! V)r-)*)" O*a-'er +"r 1 Pe"a!# "$her 8a*'a/*e &"!)#era$)"! L"$ N". 1>> — TCT N". 3331a!# L"$ N". 1 — TCT N". 3333. The #ee# "+ a*e wa !"$ar)e#/, O$)*)" S, B"!-"!. O! @'*, 1>5 1:5 @"e A. O*a-'er "*# $" h) "! V)r-)*)" O*a-'erL"$ N". :>31 a!# L"$ N". :>33 +"r 15 Pe". Dee# "+ Sa*e wa

!"$ar)e# /, O$)*)" S, B"!-"!. re&"r#5 8"*. 15 (a-e 9: O! Se($e6/er 15 1 V)r-)*)" O*a-'er e%e&'$e# a Ge!era*P"wer "+ A$$"r!e, )! +a8"r "+ @"e A. O*a-'er !"$ar)e# /, O$)*)" S,B"!-"! E%h)/)$ 7V7 a'$h"r))!- $he *a$$er $" e%er&)e -e!era*&"!$r"* a!# '(er8))"! "8er a** "+ h) /')!e a!# (r"(er$)e a!#a6"!- "$her5 $" e** "r 6"r$-a-e $he a6e.O*)8)a P. O*a-'er a!# E#'ar#" O*a-'er were re6"8e# aa#6)!)$ra$"r "+ $he e$a$e a!# "! Fe/r'ar, 135 15 (*a)!$)? 4a.L)!#a O*a-'er 4"!$a,re wa a((")!$e# a#6)!)$ra$"r /, $hePr"/a$e C"'r$. CIETD&De+e!#a!$ @"e A. O*a-'er #)e# "! @a!'ar, 3:5 1>. E%h)/)$ 7NN7He wa 'r8)8e# /, h) &h)*#re!5 !a6e*, $he #e+e!#a!$ N)6+a

O*a-'er Ta-'a,5 C"ra"! O*a-'er U,5 @"e O*a-'er5 @r.5 V)r-)*)"O*a-'er5 @a&)!$" O*a-'er5 a!# Ra6"! O*a-'er.De+e!#a!$ O*)8)a P. O*a-'er #)e# "! A'-'$ 315 1 E%h)/)$ 7OO7a!# wa 'r8)8e# /, a** $he (*a)!$)? a $he "!*, he)r. The #e&e#e!$ L)!" O*a-'er ha8e ha# $hree 6arr)a-e. He wa r$6arr)e# $" 4ar-ar)$a O+e6ar)a wh" #)e# A(r)* 5 13>. H) e&"!#w)+e wa G*"r)a B'e!a8e!$'ra wh" #)e# "! @'*, 35 19. The $h)r#w)+e wa $he #e+e!#a!$ O*)8)a P. O*a-'er.L"$ N". w)$h a! area "+ 3599 2'are 6e$er ) )! $he hear$ "+ $he P"/*a&)"! "+ G')!"/a$a!5 A*/a,. The #e&eae# L)!" O*a-'er)!her)$e# $h) (r"(er$, +r"6 h) (are!$. O! )$ wa ere&$e# $he)ra!&e$ra* h"6e.

A a*rea#, a)# a/"8e5 L"$ N". wa a6"!- $he $we*8e 13 *"$"*# +"r 3>5 Pe"5 /, a#6)!)$ra$"r O*)8)a P. O*a-'er a!#E#'ar#" O*a-'er $" Pa$"r Ba&a!) "! De&e6/er 135 13. The a*ewa a((r"8e# /, $he (r"/a$e &"'r$ "! De&e6/er 135 13. AaITCSB'$5 $he +"**"w)!- #a,5 De&e6/er 195 13 Pa$"r Ba&a!) "*# /a&=$he a6e 13 *"$ $" O*)8)a P. O*a-'er a!# E#'ar#" O*a-'er +"r3>53 Pe"5 a +"**"wa L"$ N". wa "*# /a&= $" O*)8)a P. O*a-'er a!# E#'ar#"O*a-'er +"r 135 Pe"5 )! $he (r"("r$)"! "+ 19 a!# 19re(e&$)8e*,. E%h)/)$ 7B7/ : "+ $he 13 *"$ !a6e*,5 L"$ :>15 :>35 :9>5 a!# > were"*# /a&= $" O*)8)a O*a-'er +"r 15 Pe". E%h)/)$ 7E7

>


6/71

& "+ $he 13 *"$ !a6e*,5 L"$ >1:5 5 >35 1>5 515 a!# 3 were "*# /a&= $" E#'ar#" O*a-'er +"r 35> Pe".E%h)/)$ 7C7 &TaDHS# L"$ N". wa $h' )'e# TCT N". TJ1:>: "! De&e6/er 19513 )! $he !a6e "+ E#'ar#" B. O*a-'er 6arr)e# $" Da), Pa!$)-a!# O*)8)a P. O*a-'er 6arr)e# $" @"e A. O*a-'er $" $he e%$e!$ "+ 19 a!# 19 (r"J)!#)8)"5 re(e&$)8e*,. E%h)/)$ 7FF7 a*" 71:Ja7

e I$ a((ear +r"6 P*a! LRC P#J13 E%h)/)$ 797 $ha$#e+e!#a!$ @"e A. O*a-'er &a'e# $he '/#)8))"! 'r8e, "+ L"$ )!$" e*e8e! 11 *"$5 !a6e*,5 JA5 JB5 JC5 JD5 JE5 JF5JG5 JH5 JI5 J@5 a!# J5 "6e$)6e "! A(r)* 95 13. The'/#)8))"! 'r8e, wa a((r"8e# "! O&$"/er >5 19. A+$er $hea((r"8a* "+ $he '/#)8))"! 'r8e, "+ L"$ 5 a '/#)8))"!a-ree6e!$ wa e!$ere# )!$" "! N"8e6/er 15 195 a6"!-D"6)!-" Ca!#e*ar)a5 O*)8)a P. O*a-'er5 D"6)!-" O. #e *a T"rre a!#E6)*)a!" 4. O!-0"&". re&"r#5 8"*. 35 (a-e 1. aD&EIH Th) '/#)8))"! a-ree6e!$ ) a!!"$a$e# )! TCT N". 1:>: E%h)/)$71:7J71:J#7 a +"**"wOw!er L"$ N". Area )! TCT N". V"*. Pa-e

2. 6.D"6)!-" Ca!#e*ar)a JA 9 TJ93 3 O*)8)a P. O*a-'er JB 3 TJ93 3 O*)8)a P. O*a-'er JC 11 TJ93 3 O*)8)a P. O*a-'er JD 11 TJ93 3 1O*)8)a P. O*a-'er JE 11 TJ931 3 11O*)8)a P. O*a-'er JF 11 TJ933 3 13O*)8)a P. O*a-'er JG 33 TJ939 3 19D"6)!-" O. #e *a T"rre JH 1 TJ93: 3 1:D"6)!-" O. #e *a T"rre JI 1 TJ93> 3 1>D"6)!-" O. #e *a T"rre J@ 1 TJ93 3 1

E6)*)a!" 4. O!-0"&" J :9 TJ93 3 1A+$er L"$ wa '/#)8)#e# a a+"rea)#5 @"e A. O*a-'er aa$$"r!e,J)!J+a&$ "+ O*)8)a P. O*a-'er5 "*# $" h) "! V)r-)*)" O*a-'erL"$ JB5 JC5 JD5 JE5 JF5 a!# JG "! @a!'ar, 5 1: +"r95 Pe". E%h)/)$ 7G7 The #ee# "+ a/"*'$e a*e wa !"$ar)e#/, O$)*)" S, B"!-"!.L"$ JB a!# JC were &"!"*)#a$e# a!# $he! '/#)8)#e# a!ewa!# #e)-!a$e# a L"$ N". 1 w)$h a! area "+ 1 2'are 6e$er a!#L"$ N". 3 w)$h a! area "+ 1> 2'are 6e$er "+ $he C"!"*)#a$)"!S'/#)8))"! P*a! LRC P&J31>. P*eae =e$&h (*a! 6ar=e# aE%h)/)$ 7:75 re&"r#5 8"*. 35 (a-e O! @a!'ar, 1>5 15 @"e A. O*a-'er &*a)6)!- $" /e $he a$$"r!e,J)!J

+a&$ "+ h) "! V)r-)*)" O*a-'er '!#er a -e!era* ("wer "+ a$$"r!e,D"&. N". 1:15 Pa-e N". 15 B""= N". 5 Ser)e "+ 13 "+ N"$ar,

P'/*)& O$)*)" S, B"!-"!5 "*# L"$ N". 1 $" #e+e!#a!$ E6)*)a!" 4.O!-0"&" +"r 15 Pe" (er $he #ee# "+ a/"*'$e a*e !"$ar)e#/, O$)*)" S, B"!-"!. E%h)/)$ 7H7 The a**e-e# -e!era* ("wer "+ a$$"r!e, h"we8er wa !"$ (ree!$e# "r 6ar=e# !"r +"r6a**, "?ere#)! e8)#e!&e. AaIDHSO! Se($e6/er 5 15 @"e A. O*a-'er a-a)! &*a)6)!- $" /e $hea$$"r!e,J)!J+a&$ "+ V)r-)*)" O*a-'er '!#er $he a6e -e!era* ("wer "+

a$$"r!e, re+erre# $" )! $he #ee# "+ a/"*'$e a*e "+ L"$ 15 "*# L"$N". 3 $" E6)*)a!" 4. O!-0"&" +"r 15 Pe". E%h)/)$ 7I7 The#ee# "+ a/"*'$e a*e wa !"$ar)e# /, O$)*)" S, B"!-"!.O! @'*, 15 15 @"e A. O*a-'er a a$$"r!e,J)!J+a&$ "+ V)r-)*)"O*a-'er '!#er a -e!era* ("wer "+ a$$"r!e, D"&. N". 95 Pa-e N".5 B""= N". 1:5 Ser)e "+ 1 "*# L"$ N". JD $" E6)*)a!" 4.O!-0"&" +"r >5 Pe". The #ee# "+ a/"*'$e a*e ) D"&. N".>15 Pa-e N". 35 B""= N". 15 Ser)e "+ 1 "+ N"$ar, P'/*)&O$)*)" S, B"!-"!. E%h)/)$ 77 The a6e L"$ N". JD wa "*# "! O&$"/er 335 1 /, @"e A.O*a-'er a a$$"r!e,J)!J+a&$ "+ V)r-)*)" O*a-'er '!#er a -e!era*("wer "+ a$$"r!e, D"&. N". 95 Pa-e N". 5 B""= N". 1:5 Ser)e "+

1 "+ N"$ar, P'/*)& O$)*)" S, B"!-"! "*# L"$ N". JD $"E6)*)a!" 4. O!-0"&" +"r 15 Pe". The #ee# "+ a/"*'$e a*e) D"&. N". :5 Pa-e N". 5 B""= NO.


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Th'5 "! 3 @a!'ar, 15 $he E$a$e "+ L)!" O*a-'er re(ree!$e#/, $he *e-)$)6a$e &h)*#re! "+ $he ("'e L)!" O*a-'er a!##e+e!#a!$ O*)8)a P. O*a-'er5 !a6e*,5 S"r 4ar, E#)$h O*a-'er5A'r"ra O. #e G'6a!5 C*ar)a O. Tr)!)#a#5 L)!a O*a-'er a!# 4a.L)!#a O. 4"!$a,re5 a a$$"r!e,J)!J+a&$ a!# )! her "w! /eha*+5 *e#a! a&$)"! +"r $he A!!'*6e!$ "+ Sa*e "+ Rea* Pr"(er$, a!#"rCa!&e**a$)"! "+ T)$*e )! $he $he! C"'r$ "+ F)r$ I!$a!&e "+ A*/a,.

D"&=e$e# a C)8)* Cae N". 3395 $he a&$)"! !a6e# a #e+e!#a!$$he ("'e O*)8)a P. O*a-'er a!# @"e A. O*a-'er; E#'ar#" O*a-'er;V)r-)*)" O*a-'er; C)(r)a!" D'ra!; $he He)r "+ E$a!)*a" O. O*a-'er5re(ree!$e# /, 4ar)a @'a! V#a. #e O*a-'er; a!# $he Ph)*)(()!eNa$)"!a* Ba!= PNB.I! $he "r)-)!a* &"6(*a)!$5 $he (*a)!$)? $here)! a**e-e# $ha$ $he a*e"+ $he +"**"w)!- (r"(er$)e /e*"!-)!- $" $he E$a$e "+ L)!" O*a-'er$" E$a!)*a" O*a-'er were a/"*'$e*, )6'*a$e# "r &$)$)"'5(ar$)&'*ar*, L"$ N". >5 1>>5 15 :>315 :>335 9>5 95>5 >95 a!# 9. I! (ra,)!- $ha$ $he a*e /e #e&*are# a !'**a!# 8")#5 $he (*a)!$)? *)=ew)e (ra,e# $ha$ $he re'*$)!- Tra!+erCer$)&a$e "+ T)$*e )'e# $" @"e O*a-'er5 V)r-)*)" O*a-'er5 C)(r)a!"

D'ra! a!# $he PNB /e a!!'**e#.De+e!#a!$ PNB &*a)6e# )! )$ A!wer5 inter alia, $ha$ )$ wa a6"r$-a-ee )! -""# +a)$h a!# +"r 8a*'e "+ L"$ N". >5 >9 a!#95 wh)&h were 6"r$-a-e# a e&'r)$, +"r a *"a! "+ P15.;$he 6"r$-a-e &"!$ra&$ a!# "$her *"a! #"&'6e!$ were )-!e# /,$he ("'e E$a!)*a" a!# 4ar)a O*a-'er a re-)$ere# "w!er; $he(r"&ee# "+ $he *"a! were re&e)8e# /, $he 6"r$-a-"r $he6e*8e;L)!#a O*a-'er 4"!$a,re ha# !" *e-a* &a(a&)$, $" 'e a a$$"r!e,J)!J+a&$; (*a)!$)? a we** a 4ar)a O*a-'er were )! e$"((e*; a!# $hea&$)"! wa a*rea#, /arre# /, (re&r)($)"!. PNB e$ '( a &"6('*"r,&"'!$er&*a)6 +"r #a6a-e5 &"$ "+ *)$)-a$)"! a!# a$$"r!e,M +ee. I$a*" *e# a &r"J&*a)6 a-a)!$ 4ar)a O*a-'er +"r $he (a,6e!$ "+

$he 8a*'e "+ $he *"a! (*' $he a-ree# )!$ere$ )! $he e8e!$ $ha$ 0'#-6e!$ w"'*# /e re!#ere# a-a)!$ )$. TIHDAaDe+e!#a!$ O*)8)a P. O*a-'er5 @"e A. O*a-'er a!# V)r-)*)" O*a-'er5)! $he)r A!wer5 #e!)e# $he 6a$er)a* a**e-a$)"! )! $he &"6(*a)!$. The, 6a)!$a)!e# $ha$ $he a*e "+ $he (r"(er$)e $" Pa$"r Ba&a!)a!# E$a!)*a" O*a-'er were 0'#)&)a**, a((r"8e#; $he &"6(*a)!$ #)#!"$ $a$e a '&)e!$ &a'e "+ a&$)"!; )$ wa /arre# /, *a&he a!#"r(re&r)($)"!; lis pendens e%)$e#; $ha$ $he *"!- ("e)"! "+ $he8e!#ee ha8e r)(e!e# )!$" a&2'))$)8e (re&r)($)"! )! $he)r +a8"r5a!# $he (r"(er$)e !" *"!-er +"r6e# (ar$ "+ $he E$a$e "+ L)!"O*a-'er; '!$)* $he *)2')#a$)"! "+ $he &"!0'-a* (r"(er$)e "+ L)!"O*a-'er a!# h) +"r6er w)8e5 $he (*a)!$)? were !"$ $he (r"(er

(ar$)e )! )!$ere$ $" 'e )! $he a&$)"!; a!# )! "r#er $" a?"r#&"6(*e$e re*)e+5 $he "$her &"!0'-a* (r"(er$)e "+ L)!" O*a-'er w)$h

h) +"r6er w)8e5 a!# h) &a()$a* (r"(er$, $ha$ ha# /ee! &"!8e,e#w)$h"'$ $he a((r"8a* "+ $he $e$a$e &"'r$ h"'*# a*" /e )!&*'#e#+"r re&"8er, )! $he )!$a!$ &ae.De+e!#a!$ 4ar)a @'a! V#a. #e O*a-'er5 re(ree!$)!- $he he)r "+ E$a!)*a" O*a-'er5 )! her A!wer5 1 *)=ew)e #e!)e# $he 6a$er)a*a**e-a$)"! "+ $he &"6(*a)!$ a!# )!)$e# $ha$ $he (*a)!$)? ha# !"8a*)# &a'e "+ a&$)"! a-a)!$ $he he)r "+ $he *a$e E$a!)*a"

O*a-'er5 a $he *a$$er #)# !"$ (ar$)&)(a$e )! $he a**e-e# $ra!+er "+ (r"(er$)e /, O*)8)a P. O*a-'er a!# E#'ar#" O*a-'er )! +a8"r "+ $he*a$e E$a!)*a" O*a-'er.De+e!#a!$ C)(r)a!" D'ra! &*a)6e#5 )! h) A!wer5 11 $ha$ $he&"6(*a)!$ $a$e# !" &a'e "+ a&$)"!; he wa 6ere*, )!$)$'$e# /,h) *a$e )$erJ)!J*aw @"e!a D'ra! $" $a=e "8er $he 6a!a-e6e!$"+ L"$ N". 9> a!# 9 )! 11; a!# $he rea* (ar$,J)!J)!$ere$)! $he &ae wa $he a#6)!)$ra$"r "+ $he e$a$e "+ @"e!a D'ra!.aEHAISO! 11 @a!'ar, 1>5 a! A6e!#e# C"6(*a)!$ 13 wa *e# )! "r#er$" )6(*ea# re("!#e!$ E6)*)a!" 4. O!-0"&" a $he $ra!+eree "+ V)r-)*)" O*a-'er w)$h re(e&$ $" ("r$)"! "+ L"$ N". 5 !a6e*, L"$

N". 15 35 JD5 JE5 JF5 a!# JG.I! h) A!wer w)$h C"'!$er&*a)6 a!# 4"$)"! $" D)6)5 19re("!#e!$ O!-0"&" #e!)e# $he 6a$er)a* a**e-a$)"! "+ $hea6e!#e# &"6(*a)!$ a!# )!$er("e#5 a ar6a$)8e #e+e!e $he$a$'$e "+ *)6)$a$)"!5 $ha$ he wa a /',er )! -""# +a)$h5 $ha$(*a)!$)? ha# !" &a'e "+ a&$)"! a-a)!$ h)65 a!# $ha$ $he a*e "+ (r"(er$, $" Pa$"r Ba&a!)5 +r"6 wh"6 O!-0"&" #er)8e# h) $)$*e5 wa 0'#)&)a**, a((r"8e#.O! 39 @a!'ar, 15 (*a)!$)? *e# a ReJA6e!#e# C"6(*a)!$5 1: )!wh)&h $he he)r "+ E$a!)*a" O*a-'er were )#e!$)e#5 !a6e*,5 4ar)a @'a! V#a. #e O*a-'er5 Pe$er O*a-'er5 Y"*a!#a O*a-'er a!# A!$"!)"B"!- O*a-'er.

I! $he)r A!wer5 1> $he he)r "+ E$a!)*a" O*a-'er re)$era$e# $he)r&*a)6 $ha$ E$a!)*a" O*a-'er !e8er ha# a!, $ra!a&$)"! "r#ea*)!- w)$h $he E$a$e "+ L)!" O*a-'er; !"r #)# $he, 6"r$-a-e a!,(r"(er$, $" $he PNB. &CEAHTO! > A'-'$ 15 $he he)r "+ E$a!)*a" O*a-'er a!# (e$)$)"!er4a. L)!#a O*a-'er 4"!$a,re '/6)$$e# a &"6(r"6)e a-ree6e!$51 wh)&h wa a((r"8e# /, $he $r)a* &"'r$.O! O&$"/er 15 C)(r)a!" D'ra! *e# a 4a!)+e$a$)"! 1 )!wh)&h he wa)8e# a!, &*a)6 "! L"$ N". 9> a!# 9. U("!6"$)"!5 D'ra! wa "r#ere# #r"((e# +r"6 $he &"6(*a)!$ /, $he $r)a*&"'r$ )! a! "r#er 1 #a$e# 3 O&$"/er 1.I! a De&))"! 1 #a$e# 19 @'*, 315 $he RTC r'*e# )! +a8"r "+ $he

(*a)!$)?. The (er$)!e!$ ("r$)"! "+ $he #e&))"! (r"8)#e


8/71

The e!$)re$, "+ $he e8)#e!&e a##'&e# &*ear*, h"w $ha$ $he a*e "+ $he 13 *"$ $" Pa$"r Ba&a!) ('r'a!$ $" E%h)/)$ 7A7 a!# $he a*e "+ $he 1 *"$ $" E$a!)*a" O*a-'er ('r'a!$ $" E%h)/)$ 7D7 werea/"*'$e*, )6'*a$e# a*e a!# $h' 8")# ab initio. The $w" #ee# "+ a*e E%h)/)$ 7A7 a!# 7D7 are e8e! w"re $ha! &$)$)"'5 $he, are&"6(*e$e*, !'** a!# 8")# +"r *a&= "+ &"!)#era$)"! a!# $he (ar$)e$here)! !e8er )!$e!#e# $" /e /"'!# /, $he $er6 $here"+ a!# $he

a&$)"! "r #e+e!e +"r $he #e&*ara$)"! "+ $he)r )!e%)$e!&e #"e !"$(re&r)/e. Ar$. 1:15 C)8)* C"#e A)#e +r"6 /e)!- )6'*a$e# $he,were &*ear*, a!# '!e2')8"&a**, )!$e!#e# $" #e(r)8e $he &"6('*"r,he)r "+ $he)r *e-)$)6e . . .. a&HCSD The #ee# "+ a*e5 E%h)/)$ 7A7 a!# 7D7 /e)!- 8")# ab initio, $he,are #ee6e# a !"!Je%)$e!$ a!# $he a((r"8a* $here"+ /, $he(r"/a$e &"'r$ /e&"6e )66a$er)a* a!# "+ !" &"!e2'e!&e5 /e&a'e$he a((r"8a* /, $he (r"/a$e &"'r$ #)# !"$ &ha!-e $he &hara&$er "+ $he a*e +r"6 8")# $" 8a*)#. . . . .%%% %%% %%%De+e!#a!$ @"e A. O*a-'er )6'*a$e# $he a*e a!# ha# $he6

a((r"8e# /, $he (r"/a$e &"'r$ " $ha$ $hee (r"(er$)e w"'*#a((ear $he! $" &eae /e)!- a (ar$ "+ $he e$a$e a!# $he 8e!#ee6a, $he! /e a$ *)/er$, $" #)("e "+ $he a6e )! a!, 6a!!er he6a, wa!$. The, (r"/a/*, /e*)e8e# $ha$ /, 6a=)!- )$ a((ear $ha$$he (r"(er$)e were /"'-h$ /a&= +r"6 Pa$"r Ba&a!) '!#er a)6'*a$e# a*e5 $he, O*)8)a O*a-'er a!# E#'ar#" O*a-'er w"'*#a((ear $he! a $he "w!er "+ $he (r"(er$)e a*rea#, )! $he)r(er"!a* &a(a&)$)e $ha$ #)("a* $here"+ w)** !" *"!-er re2')re&"'r$ )!$er8e!$)"!. . . . .%%% %%% %%%@"e A. O*a-'er ha# O*)8)a P. O*a-'er e%e&'$e a S(e&)a* P"wer "+ A$$"r!e, E%h)/)$ 7T7 a'$h"r))!- h)6 @"e A. O*a-'er $" e** "r

e!&'6/er $he (r"(er$)e a**e-e#*, /"'-h$ /a&= +r"6 Pa$"r Ba&a!)wh)&h @"e A. O*a-'er #)# w)$h re(e&$ $" $he 19 hare "+ O*)8)a P.O*a-'er "! L"$ N". /, e**)!- )$ $" h) "! V)r-)*)" +"r "!*, 95Pe"5 $he! &a'e# V)r-)*)" $" e%e&'$e a ("wer "+ a$$"r!e,a'$h"r))!- h)6 $" e** "r e!&'6/er $he 19 hare wh)&h he #)# /,e**)!- $he a6e $" #e+e!#a!$ E6)*)a!" 4. O!-0"&". &HDEaCV)r-)*)" O*a-'er h"we8er e%e&'$e# a! a#a8)$ E%h)/)$ 7CC7where)! he #e!)e# ha8)!- /"'-h$ a!, (r"(er$, +r"6 $he e$a$e "+ L)!" O*a-'er a!# $ha$ )+ $here are #"&'6e!$ h"w)!- $ha$ +a&$ he#"e !"$ =!"w h"w )$ &a6e a/"'$. . . . . The 13 ("wer "+ a$$"r!e, re+erre# $" /, @"e A. O*a-'er a h)a'$h"r)$, +"r $he a*e "+ L"$ 1 a!# 3 +"r6er*, *"$ JB a!# JC

wa !"$ (ree!$e# !"r "?ere# )! e8)#e!&e.

There are $w" #ee# "+ a*e "8er L"$ JD5 E%h)/)$ 77 a!# 7@7 )!+a8"r "+ #e+e!#a!$ E6)*)a!" 4. O!-0"&" w)$h #)?ere!$ #a$e "+ e%e&'$)"!5 #)?ere!$ a6"'!$ "+ &"!)#era$)"!5 #)?ere!$ N"$ar,P'/*)&. There are $w" #ee# "+ a*e "8er L"$ JE a!# JF E%h)/)$ 747a!# 7L7 )! +a8"r "+ #e+e!#a!$ E6)*)a!" 4. O!-0"&" w)$h #)?ere!$#a$e "+ e%e&'$)"!5 #)?ere!$ a6"'!$ "+ &"!)#era$)"! a!# #)?ere!$

N"$ar, P'/*)&. There are $w" #ee# "+ a*e "8er L"$ JG E%h)/)$ 7N7 a!# 7O7 )!+a8"r "+ E6)*)a!" 4. O!-0"&" w)$h #)?ere!$ #a$e "+ e%e&'$)"! w)$h$he a6e a6"'!$ "+ &"!)#era$)"! a!# $he a6e N"$ar, P'/*)&.Wh)*e L"$ JD wa a**e-e#*, "*# a*rea#, $" E6)*)a!" 4. O!-0"&")! 15 ,e$ )$ wa $)** @"e A. O*a-'er wh" *e# a (e$)$)"! +"r $he)'a!&e "+ a e&"!# "w!erM &"(, a a$$"r!e, )! +a&$ "+ V)r-)*)"O*a-'er "! A'-'$ 5 1 E%h)/)$ 7SS7 a!# !" 6e!$)"! wa 6a#ea/"'$ $he a*e. EAH&CTU!#er $hee &)r&'6$a!&e5 $he #"&'6e!$ "+ #e+e!#a!$ E6)*)a!"4. O!-0"&" "! *"$ $here+"re5 )! " +ar a $he ("r$)"! hea**e-e#*, /"'-h$ +r"6 @"e A. O*a-'er a a$$"r!e, )! +a&$ "+ V)r-)*)"

O*a-'er '?er er)"'*, +r"6 )!r6)$)e a!# a((ear #'/)"'.De+e!#a!$ E6)*)a!" 4. O!-0"&" &a!!"$ &*a)6 -""# +a)$h /e&a'ea&&"r#)!- $" h)65 whe! $hee *"$ JB $" JG were "?ere# $"h)6 h) &"!#)$)"! wa $" $ra!+er $he $)$*e )! h) !a6e a!# $he! he(a,. He #)# !"$ /"$her $" 8er)+, $he $)$*e "+ h) 8e!#"r. . . . .S" w)$h re(e&$ $" $he a*e "+ L"$ JB $" JG5 E6)*)a!" 4.O!-0"&" ha !" (r"$e&$)"! a )!!"&e!$ ('r&haer +"r -""# +a)$ha?"r# (r"$e&$)"! "!*, $" ('r&haer +"r 8a*'e +r"6 $he re-)$ere#"w!er. . . . !"w)!- $ha$ he wa #ea*)!- "!*, w)$h a! a-e!$ . . .5 )$/eh""8e '("! #e+e!#a!$ E6)*)a!" 4. O!-0"&" $" !# "'$ $hee%$e!$ "+ $he a'$h"r)$, "+ @"e A. O*a-'er a we** a $he $)$*e "+ $he"w!er "+ $he (r"(er$,5 /e&a'e a ear*, a 19 ('r'a!$ $" $he

'/#)8))"! a-ree6e!$5 re&"r#5 8"*. 35 (a-e 1 a!# E%h)/)$ 71:7a!# 71:J#7 he a*rea#, =!ew +'**, we** $ha$ L"$ JB $" JG hewa /',)!- wa "w!e# /, O*)8)a P. O*a-'er a!# !"$ /, V)r-)*)"O*a-'er. IHA&CS%%% %%% %%%W)$h re(e&$ $" $he 1 *"$ "*# $" E#'ar#" O*a-'er E%h)/)$ 7D7 @"e A. O*a-'er ha# E$a!)*a" O*a-'er e%e&'$e a ("wer "+ a$$"r!e,E%h)/)$ 7> a!# 1 $" h) "! V)r-)*)" O*a-'er. Wh)*e'!#er E%h)/)$ 7UU7 #a$e# De&e6/er 35 15 he /"'-h$ $he 1

(ar&e* "+ *a!#5 a6"!- wh)&h ) *"$ :>31 a!# :>33 +r"6 E$a!)*a"O*a-'er5 ,e$5 "! 4ar&h 15 15 he a-a)! /"'-h$ *"$ :>31 a!#


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:>33 re&"r#5 8"*. 15 (a-e 9 +r"6 E$a!)*a" O*a-'er. Wh)*e *"$9> a!# 9 were a6"!- $h"e "*# $" h)6 '!#er E%h)/)$ 7UU75 )$a((ear $ha$ he a-a)! /"'-h$ $he a6e "! @'!e >5 1 '!#erE%h)/)$ 7F7. The he)r "+ E$a!)*a" O*a-'er h"we8er #e!)e# ha8)!- /"'-h$ a!,(ar&e* "+ *a!# +r"6 $he e$a$e "+ L)!" O*a-'er. E$a!)*a" O*a-'erMw)#"w5 4ar)a @'a! 8#a. #e O*a-'er5 e%e&'$e# a! a#a8)$ E%h)/)$

7BB7 $ha$ $he, #)# !"$ /', a!, (r"(er$, +r"6 $he e$a$e "+ L)!"O*a-'er5 $he, #)# !"$ e** a!, (r"(er$, "+ $he e$a$e a!# $ha$ $he,#)# !"$ 6"r$-a-e a!, (r"(er$, w)$h $he PNB. She re(ea$e# $h) )!her #e(")$)"!. re&"r#5 8"*. 35 (a-e >1 Th) wa &"rr"/"ra$e# /,!" *e $ha! +"r6er &"Ja#6)!)$ra$"r E#'ar#" O*a-'er )! h)#e(")$)"! $"" E%h)/)$ 7RRRR7 $ha$ $he a*e "+ $he 1 (ar&e* "+ *a!# $" E$a!)*a" O*a-'er wa /'$ a )6'*a$e# a*e w)$h"'$ a!,&"!)#era$)"!. . . . .%%% %%% %%%A (ar$)a* #e&))"! wa a*rea#, re!#ere# /, $h) &"'r$ )! )$ "r#er "+ A'-'$ >5 1 re&"r#5 8"*. 35 (a-e : a((r"8)!- $he&"6(r"6)e a-ree6e!$ w)$h #e+e!#a!$ He)r "+ E$a!)*a"

O*a-'er. re&"r#5 8"*. 3 (a-e >. DEC&ASDe+e!#a!$ C)(r)a!" D'ra! wa #r"((e# +r"6 $he &"6(*a)!$ (er $he"r#er "+ $he &"'r$ #a$e# O&$"/er 35 1 re&"r#5 8"*. 35 (a-e1>> /e&a'e he wa)8e# a!, r)-h$ "r &*a)6 "8er *"$ 9> a!#9. re&"r#5 8"*. 35 (a-e 1>. E6(ha) "'r. The #)(")$)8e ("r$)"! "+ $he a/"8e #e&))"! wa5 h"we8er5a6e!#e# /, $he $r)a* &"'r$ )! a! Or#er 3 #a$e# 39 @'*, 31 $"rea# a +"**"wWHEREFORE5 (re6)e &"!)#ere#5 #e&))"! ) here/, re!#ere# )!+a8"r "+ $he (*a)!$)? a +"**"w1 The #ee# "+ a*e $" Pa$"r Ba&a!) E%h)/)$ 7A7 a!# $he #ee# "+ a*e $" E$a!)*a" O*a-'er E%h)/)$ 7D7 are here/, #e&*are# a !'**

a!# 8")# a!# w)$h"'$ +"r&e a!# e?e&$ a!# a** $he '/e2'e!$$ra!+er a!# &er$)&a$e ar))!- $here+r"6 *)=ew)e #e&*are# !'**a!# 8")# a!# &a!&e**e# a w)$h"'$ +"r&e a!# e?e&$5 e%&e($ ahere)! (r"8)#e# +"r.3 L"$ N". :>15 :>35 :9> a!# > are here/, "r#ere#re8er$e# /a&= $" $he e$a$e "+ L)!" O*a-'er a!# +"r $h) ('r("e5w)$h)! $e! 1 #a, +r"6 $he !a*)$, "+ $h) #e&))"!5 $he he)r "+ O*)8)a P. O*a-'er $he (*a)!$)? here)! [sic] are here/, "r#ere# $"e%e&'$e $he !e&ear, #"&'6e!$ "+ re&"!8e,a!&e5 +a)*'re +"rwh)&h5 $he C*er= "+ C"'r$ ) here/, "r#ere# $" e%e&'$e $he a)##ee# "+ re&"!8e,a!&e.9 L"$ N". >1:5 5 >35 1>5 5 1 a!# 3 are

here/, "r#ere# re8er$e# /a&= $" $he e$a$e "+ L)!" O*a-'er a!# +"r$h) ('r("e5 w)$h)! $e! 1 #a, +r"6 $he !a*)$, "+ $h) #e&))"!5

#e+e!#a!$ E#'ar#" O*a-'er ) here/, "r#ere# $" e%e&'$e $he!e&ear, #"&'6e!$ "+ re&"!8e,a!&e5 +a)*'re +"r wh)&h5 $he C*er="+ C"'r$ ) here/, "r#ere# $" e%e&'$e $he a)# #ee# "+ re&"!8e,a!&e. T&EaAS: L"$ 1 a!# 35 P&J31>5 a!# L"$ JD5 JE5 JF a!# JG5P#J13 "*# $" E6)*)a!" 4. O!-0"&" are here/, "r#ere#re8er$e# /a&= $" $he e$a$e "+ L)!" O*a-'er. F"r $h) ('r("e5 w)$h)!

$e! 1 #a, +r"6 $he !a*)$, "+ $h) #e&))"!5 #e+e!#a!$ E6)*)a!"4. O!-0"&" ) here/, "r#ere# $" e%e&'$e $he !e&ear, #ee# "+ re&"!8e,a!&e5 "$herw)e5 $he C*er= "+ C"'r$ ha** /e "r#ere# $"e%e&'$e $he a)# re&"!8e,a!&e a!# ha8e $he a6e re-)$ere# w)$h$he Re-)$er "+ Dee# " $ha$ !ew $)$*e ha** /e )'e# )! $he !a6e"+ $he e$a$e "+ L)!" O*a-'er a!# $he $)$*e "+ E6)*)a!" O!-0"&"&a!&e**e#.> The (ar$)e ha8e a&2')e&e# $" $he a*e "+ $he 19 ("r$)"! "+ L"$ $" E#'ar#" O*a-'er a we** a $" $he *a$$erM #)(")$)"! $here"+ a!# are !"w )! e$"((e* $" 2'e$)"! $he a6e. The &"'r$ w)** *ea8e$he (ar$)e where $he, are w)$h re(e&$ $" $he 19 hare "+ L"$ . L"$ >5 1>>5 15 :>315 :>335 9>5 95 are here/,

re8er$e# /a&= $" $he e$a$e "+ L)!" O*a-'er a!# +"r $h) ('r("e5$he C*er= "+ C"'r$ ) here/, "r#ere# $" e%e&'$e $he !e&ear,#ee# "+ re&"!8e,a!&e w)$h)! $e! #a, +r"6 $he !a*)$, "+ $h)#e&))"! a!# &a'e )$ re-)$ra$)"! +"r $he )'a!&e "+ !ew $)$*e )!$he !a6e "+ $he E$a$e "+ L)!" O*a-'er a!# $he &a!&e**a$)"! "+ e%)$)!- "!e "8er $he a6e. Wh)*e $he 6"r$-a-e w)$h $he #e+e!#a!$ PNB ) !'** a!# 8")#5 L"$>5 >9 a!# 9 ha** re6a)! w)$h $he Re('/*)& "+ $hePh)*)(()!e a a $ra!+eree )! -""# +a)$h.B"$h $he (e$)$)"!er a!# re("!#e!$ *e# $he)r re(e&$)8e N"$)&e "+ A((ea* 31 +r"6 $he a/"8e #e&))"!. The &ae wa #"&=e$e# )! $heC"'r$ "+ A((ea* a CAJG.R. CV N". 11.

I! $he)r P*a)!$)?JA((e**a!$M Br)e+ 33 *e# /e+"re $he C"'r$ "+ A((ea*5 (e$)$)"!er E$a$e ar-'e# $ha$ $he $r)a* &"'r$ erre# )! !"$"r#er)!- $he re$)$'$)"! a!#"r &"6(e!a$)"! $" $he6 "+ $he 8a*'e"+ $he (ar&e* "+ *a!# $ha$ were 6"r$-a-e# $" PNB5 !"$w)$h$a!#)!-$he +a&$ $ha$ $he 6"r$-a-e wa #e&*are# !'** a!# 8")#. Pe$)$)"!er6a)!$a)! $ha$ $he PNB /e!e$e# +r"6 a 8")# $ra!a&$)"! a!# h"'*#$h' /e 6a#e *)a/*e +"r $he 8a*'e "+ $he *a!#5 6)!' $he &"$ "+ $he6"r$-a-e a!# $he rea"!a/*e e%(e!e +"r $he +"re&*"'re5&"!"*)#a$)"! a!# $ra!+er "+ $he *"$. SDTIHAO!-0"&"5 "! $he "$her ha!#5 ar-'e# )! h) De+e!#a!$JA((e**a!$MBr)e+ 39 $ha$ $he $r)a* &"'r$ erre# )! #e&*ar)!- a !'** a!# 8")# $heDee# "+ Sa*e )! +a8"r "+ Pa$"r Ba&a!) a!# E#'ar#" O*a-'er a!#

$he '/e2'e!$ $ra!+er a!# &er$)&a$e ar))!- $here+r"6;"r#er)!- $he re&"!8e,a!&e "+ $he *"$ "*# $" h)6 O!-0"&"; a!#


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+a)*)!- $" re"*8e $he ar6a$)8e #e+e!e "+ (re&r)($)"!5 $hea'$h"r)$, "+ O*)8)a a!# E#'ar#" $" #)("e "+ (r"(er$)e +"r6er*,/e*"!-)!- $" $he e$a$e "+ L)!" O*a-'er5 re&"'re )! a &"'r$ "+ &"Je2'a* 0'r)#)&$)"!5 a!# +"r'6 h"(()!-. Pe$)$)"!er L)!#a O. 4"!$a,re wa *)=ew)e a**"we# $" *e a Br)e+ 3:"! her "w! /eha*+5 a P*a)!$)?JA((e**ee a!# P*a)!$)?JA((e**a!$. 3>

She re+'$e# $here)! $he a)-!6e!$ "+ err"r 6a#e /, De+e!#a!$JA((e**a!$ O!-0"&" a!# a)-!e# a err"r $he r'*)!- "+ $he $r)a* &"'r$$ha$ $he *"$ 6"r$-a-e# $" $he PNB h"'*# re6a)! w)$h $he Re('/*)&"+ $he Ph)*)(()!e a a $ra!+eree )! -""# +a)$h.O! 3 Fe/r'ar, 35 $he C"'r$ "+ A((ea* re!#ere# $he aa)*e#De&))"!5 $he #)(")$)8e ("r$)"! "+ wh)&h rea#WHEREFORE5 (re6)e &"!)#ere#5 $he a((ea*e# De&))"! ) here/,4ODIFIED5 )! $ha$ Para-ra(h : "+ $he a6e!#e# #e&))"! ) here/,Or#ere# De*e$e#5 a!# $he 2'e$)"!e# a*e $" #e+e!#a!$Ja((e**a!$E6)*)a!" 4. O!-0"&" are UPHELD. 3I! #e!,)!- $he a((ea* )!$er("e# /, (e$)$)"!er5 $he a((e**a$e &"'r$rea"!e# $ha$ $he &*a)6 +"r $he 8a*'e "+ $he *"$ 6"r$-a-e# w)$h

$he PNB were !"$ (ra,e# +"r )! $he "r)-)!a* C"6(*a)!$5 $heA6e!#e# C"6(*a)!$ "r e8e! )! $he ReJA6e!#e# C"6(*a)!$. Wha$wa "'-h$ $here)! wa 6ere*, $he #e&*ara$)"! "+ $he !'**)$, "+ $he6"r$-a-e &"!$ra&$ w)$h PNB. A $he re*)e+ (ra,e# +"r )! $he a((ea*wa !"$ &"!$a)!e# )! $he &"6(*a)!$5 $he a6e wa $h' /arre#.HaAIES The C"'r$ "+ A((ea* a*" r'*e# $ha$ $he e8)#e!&e "+ (e$)$)"!er+a)*e# $" re/'$ $he (re'6($)"! $ha$ PNB wa a 6"r$-a-ee )! -""#+a)$h. C"!$rar)*,5 wha$ wa (r"8e! wa $he +a&$ $ha$ O*)8)a O*a-'era!# @"e A. O*a-'er were $he (er"! re("!)/*e +"r $he +ra'#'*e!$$ra!a&$)"! )!8"*8)!- $he 2'e$)"!e# (r"(er$)e. Th'5 $he &*a)6+"r re$)$'$)"! "+ $he 8a*'e "+ $he 6"r$-a-e# (r"(er$)e h"'*# /e

6a#e a-a)!$ $he6.A re-ar# $he a((ea* "+ re("!#e!$ O!-0"&"5 $he a((e**a$e &"'r$+"'!# $he a6e $" /e 6er)$"r)"'. The a)# &"'r$ r'*e# $ha$ whe!$he a*e "+ rea* (r"(er$, ) 6a#e $hr"'-h a! a-e!$5 $he /',er !ee#!"$ )!8e$)-a$e $he (r)!&)(a*M $)$*e. Wha$ $he *aw 6ere*, re2')re+"r $he 8a*)#)$, "+ $he a*e ) $ha$ $he a-e!$ a'$h"r)$, /e )! wr)$)!-.F'r$her6"re5 $he e8)#e!&e a##'&e# /, (e$)$)"!er wa r'*e# $" /e)!a#e2'a$e $" '(("r$ $he &"!&*')"! $ha$ O!-0"&" =!ew "+ +a&$)!#)&a$)8e "+ $he #e+e&$ )! $he $)$*e "+ O*)8)a O*a-'er "r V)r-)*)"O*a-'er.Pe$)$)"!er 6"8e# +"r a (ar$)a* re&"!)#era$)"! 3 "+ $he C"'r$ "+ A((ea*M #e&))"! )! "r#er $" 2'e$)"! $he r'*)!- $ha$ re("!#e!$

O!-0"&" wa a /',er )! -""# +a)$h. The 6"$)"! wa5 h"we8er5#e!)e# )! a Re"*'$)"! 3 #a$e# 3 @'!e 3.

A--r)e8e#5 (e$)$)"!er *e# $he )!$a!$ Pe$)$)"! +"r Re8)ew "!Certiorari '!#er R'*e :> "+ $he Re8)e# R'*e "+ C"'r$5 ra))!- $he+"**"w)!- a)-!6e!$ "+ err"rI. THE COURT OF APPEALS CO44ITTED AN ERROR IN LAW WHEN ITRULED5 ON SPECULATION5 THAT RESPONDENT E4ILIANO 4.ONG@OCO WAS A BUYER IN GOOD FAITH OF THE PROPERTIES OF

THE ESTATE OF LINO OLAGUER5 DESPITE THE E


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O*a-'er wh" *e# "! A'-'$ 1 a (e$)$)"! +"r $he )'a!&e "+ ae&"!# "w!er &"(, 9: "+ $he $)$*e $" $he (r"(er$,5 a!# !" 6e!$)"!wa 6a#e a/"'$ $he a*e $" O!-0"&". DHITC&Re("!#e!$ O!-0"&"5 "! $he "$her ha!#5 )!8"=e $he r'*)!- "+ $heC"'r$ "+ A((ea* $ha$ he wa a! )!!"&e!$ ('r&haer +"r 8a*'e. H)a#a6a!$ $a!&e ) $ha$5 whe! he a&2')re# $he '/0e&$ (r"(er$)e5$he a6e were a*rea#, "w!e# /, V)r-)*)" O*a-'er. Re("!#e!$

)!)$ $ha$ @"e A. O*a-'er wa #'*, a'$h"r)e# /, a wr)$$e! ("wer"+ a$$"r!e, whe! $he (r"(er$)e were "*# $" h)6 O!-0"&". He(")$ $ha$ $h) +a&$ a*"!e 8a*)#a$e# $he a*e "+ $he (r"(er$)e a!#+"re&*"e# $he !ee# +"r a!, )!2')r, /e,"!# $he $)$*e $" $he (r)!&)(a*.A** $he *aw re2')re5 re("!#e!$ &"!&*'#e5 ) $ha$ $he a-e!$Ma'$h"r)$, /e )! wr)$)!- )! "r#er +"r $he a-e!$M $ra!a&$)"! $" /e&"!)#ere# 8a*)#.Re("!#e!$ O!-0"&"M ("$'re ) "!*, (ar$*, &"rre&$.A&&"r#)!- $" $he (r"8))"! "+ Ar$)&*e 1: 9> "+ $he C)8)* C"#e "!A-e!&,5 whe! $he a*e "+ a ()e&e "+ *a!# "r a!, )!$ere$ $here)! )6a#e $hr"'-h a! a-e!$5 $he a'$h"r)$, "+ $he *a$$er ha** /e )!wr)$)!-. A/e!$ $h) re2')re6e!$5 $he a*e ha** /e 8")#. A*"5 '!#er

Ar$)&*e 15 9 a (e&)a* ("wer "+ a$$"r!e, ) !e&ear, )! "r#er+"r a! a-e!$ $" e!$er )!$" a &"!$ra&$ /, wh)&h $he "w!erh)( "+ a!)66"8a/*e (r"(er$, ) $ra!6)$$e# "r a&2')re#5 e)$her -ra$')$"'*,"r +"r a 8a*'a/*e &"!)#era$)"!.We !"$e $ha$ $he re"*'$)"! "+ $h) &ae5 $here+"re5 h)!-e "! $hee%)$e!&e "+ $he wr)$$e! ("wer "+ a$$"r!e, '("! wh)&h re("!#e!$O!-0"&" /ae h) -""# +a)$h. TEHDIAWhe! L"$ N". 1 a!# 3 were "*# $" re("!#e!$ O!-0"&" $hr"'-h @"e A. O*a-'er5 $he Tra!+er Cer$)&a$e "+ T)$*e "+ a)# (r"(er$)ewere )! V)r-)*)"M !a6e. 9 U!+"r$'!a$e*, +"r re("!#e!$5 $he ("wer"+ a$$"r!e, $ha$ wa ('r("r$e#*, )'e# /, V)r-)*)" )! +a8"r "+ @"eO*a-'er w)$h re(e&$ $" $he a*e "+ L"$ N". 1 a!# 3 wa !e8er

(ree!$e# $" $he $r)a* &"'r$. Ne)$her wa re("!#e!$ a/*e $" e%(*a)!$he "6))"!. O$her $ha! $he e*+Jer8)!- $a$e6e!$ "+ re("!#e!$5!" e8)#e!&e wa "?ere# a$ a** $" (r"8e $he a**e-e# wr)$$e! ("wer "+ a$$"r!e,. Th) "+ &"'re wa +a$a* $" h) &ae.A )$ $a!#5 $here ) !" wr)$$e! ("wer "+ a$$"r!e, $" (ea= "+. The$r)a* &"'r$ wa $h' &"rre&$ )! #)re-ar#)!- $he &*a)6 "+ )$e%)$e!&e. A&&"r#)!-*,5 re("!#e!$ O!-0"&"M &*a)6 "+ -""# +a)$h )!$he a*e "+ L"$ N". 1 a!# 3 ha !" *e- $" $a!# "!.A re-ar# L"$ N". JD5 JE5 JF a!# JG5 O!-0"&" wa a/*e$" (ree!$ a -e!era* ("wer "+ a$$"r!e, $ha$ wa e%e&'$e# /,V)r-)*)" O*a-'er. Wh)*e $he *aw re2')re a (e&)a* ("wer "+ a$$"r!e,5$he -e!era* ("wer "+ a$$"r!e, wa '&)e!$ )! $h) &ae5 a @"e A.

O*a-'er wa e%(re*, e6("were# $" e** a!, "+ V)r-)*)"M(r"(er$)e; a!# $" )-!5 e%e&'$e5 a&=!"w*e#-e a!# #e*)8er a!,

a-ree6e!$ $here+"r. 9 E8e! )+ a #"&'6e!$ ) #e)-!a$e# a a-e!era* ("wer "+ a$$"r!e,5 $he re2')re6e!$ "+ a (e&)a* ("wer "+ a$$"r!e, ) 6e$ )+ $here ) a &*ear 6a!#a$e +r"6 $he (r)!&)(a*(e&)&a**, a'$h"r))!- $he (er+"r6a!&e "+ $he a&$. 9 The (e&)a*("wer "+ a$$"r!e, &a! /e )!&*'#e# )! $he -e!era* ("wer whe! $hea&$ "r $ra!a&$)"! +"r wh)&h $he (e&)a* ("wer ) re2')re# )(e&)e# $here)!. :

O! )$ +a&e5 $he wr)$$e! ("wer "+ a$$"r!e, &"!$a)!e# $he )-!a$'re"+ V)r-)*)" O*a-'er a!# wa #'*, !"$ar)e#. A '&h5 $he a6e )&"!)#ere# a ('/*)& #"&'6e!$ a!# )$ ha )! )$ +a8"r $he(re'6($)"! "+ a'$he!$)&)$, a!# #'e e%e&'$)"!5 wh)&h &a! "!*, /e&"!$ra#)&$e# /, &*ear a!# &"!8)!&)!- e8)#e!&e. :1N" e8)#e!&e wa (ree!$e# $" "8er&"6e $he (re'6($)"! )! +a8"r"+ $he #'*, !"$ar)e# ("wer "+ a$$"r!e,. Ne)$her wa $here ah"w)!- "+ a!, &)r&'6$a!&e )!8"*8)!- $he a)# #"&'6e!$ $ha$w"'*# ar"'e $he '()&)"! "+ re("!#e!$ a!# ('r h)6 $" )!2')re/e,"!# )$ +"'r &"r!er5 )! $he e%er&)e "+ $ha$ rea"!a/*e #e-ree "+ (r'#e!&e re2')re# "+ a 6a! )! a )6)*ar )$'a$)"!. We $here+"re r'*e$ha$ re("!#e!$ O!-0"&" ha# e8er, r)-h$ $" re*, "! $he ("wer "+

a$$"r!e, )! e!$er)!- )!$" $he &"!$ra&$ "+ a*e "+ L"$ N". JD $"JG w)$h @"e A. O*a-'er. &IECTHW)$h re(e&$ $" $he a#a8)$ "+ V)r-)*)" O*a-'er )! wh)&h he a**e-e#*,#)a8"we# a!, &*a)6 "r (ar$)&)(a$)"! )! $he ('r&hae "+ a!, "+ $he(r"(er$)e "+ $he #e&eae# L)!" O*a-'er5 we h"*# $ha$ $he a6e )ra$her )rre*e8a!$. The a#a8)$ wa e%e&'$e# "!*, "! 1 A'-'$ 1"r )% ,ear a+$er $he *a$ a*e "+ $he (r"(er$)e wa e!$ere# )!$" )!1. I! $he #e$er6)!a$)"! "+ whe$her "r !"$ a /',er ) )! -""#+a)$h5 $he (")!$ )! $)6e $" /e &"!)#ere# ) $he 6"6e!$ whe! $he(ar$)e a&$'a**, e!$ere# )!$" $he &"!$ra&$ "+ a*e.F'r$her6"re5 $he +a&$ $ha$ L"$ N". JD $" JG were "*# $"re("!#e!$ O!-0"&" $w)&e #"e !"$ warra!$ $he &"!&*')"! $ha$ he

wa a /',er )! /a# +a)$h. Wh)*e $he a)# )!&)#e!$ 6)-h$ (")!$ $""$her "/&'re# 6"$)8e a!# arra!-e6e!$ "+ $he (ar$)e5 $he a6e#" !"$ )!#)&a$e $ha$ re("!#e!$ =!ew "+ a!, #e+e&$ )! $he $)$*e "+ $he "w!er "+ $he (r"(er$,. A $" $he (e$)$)"! *e# /, @"e A. O*a-'er +"r $he )'a!&e "+ ae&"!# "w!er &"(, "+ $he $)$*e $" L"$ N". JD5 a+$er $he (r"(er$,wa a*rea#, "*# $" re("!#e!$ O!-0"&"5 $he a6e #"e !"$)!e8)$a/*, )!#)&a$e $ha$ re("!#e!$ wa )! /a# +a)$h. I$ ) 6"re *)=e*,$ha$ @"e A. O*a-'er wa 6ere*, &"6()*)!- $he #"&'6e!$!e&ear, +"r $he $ra!+er "+ $he '/0e&$ (r"(er$,. I!#ee#5 )$ ) $" /ee%(e&$e# $ha$ )+ $he $)$*e $" $he (r"(er$, ) *"$ /e+"re $he a6e )

$ra!+erre# $" $he !a6e "+ $he ('r&haer5 )$ w"'*# /e $here("!)/)*)$, "+ $he 8e!#"r $" &a'e )$ re&"!$)$'$)"!.

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I! '65 we h"*# $ha$ re("!#e!$ E6)*)a!" 4. O!-0"&" wa )! /a#+a)$h whe! he /"'-h$ L"$ N". 1 a!# 3 +r"6 @"e A. O*a-'er5 a $he*a$$er wa !"$ (r"8e! $" /e #'*, a'$h"r)e# $" e** $he a)#(r"(er$)e.H"we8er5 re("!#e!$ O!-0"&" wa a! )!!"&e!$ ('r&haer +"r 8a*'ew)$h re-ar# $" L"$ N". JD5 JE5 JF a!# JG )!&e )$ wae!$)re*, (r"(er +"r h)6 $" re*, "! $he #'*, !"$ar)e# wr)$$e! ("wer

"+ a$$"r!e, e%e&'$e# )! +a8"r "+ @"e A. O*a-'er. DaE&TCWHEREFORE5 (re6)e &"!)#ere#5 $he )!$a!$ (e$)$)"! ) here/,PARTIALLY GRANTED. The aa)*e# De&))"! "+ $he C"'r$ "+ A((ea*#a$e# 3 Fe/r'ar, 3 )! CAJG.R. CV NO. 11 ) 4ODIFIED )!$ha$ Para-ra(h : "+ $he De&))"! #a$e# 19 @'*, 31 "+ $he Re-)"!a* Tr)a* C"'r$ "+ Le-a() C)$,5 Bra!&h 5 a!# $he Or#er #a$e# 39 @'*,31 ha** rea# a +"**"w: L"$ 1 a!# 35 P&J31> "*# $" E6)*)a!" 4. O!-0"&" are here/,"r#ere# re8er$e# /a&= $" $he e$a$e "+ L)!" O*a-'er. F"r $h)('r("e5 w)$h)! $e! 1 #a, +r"6 $he !a*)$, "+ $h) #e&))"!5#e+e!#a!$ E6)*)a!" 4. O!-0"&" ) here/, "r#ere# $" e%e&'$e $he!e&ear, #ee# "+ re&"!8e,a!&e5 "$herw)e5 $he C*er= "+ C"'r$ ha**

/e "r#ere# $" e%e&'$e $he a)# re&"!8e,a!&e a!# ha8e $he a6ere-)$ere# w)$h $he Re-)$er "+ Dee# " $ha$ !ew $)$*e ha** /e)'e# )! $he !a6e "+ $he e$a$e "+ L)!" O*a-'er a!# $he $)$*e "+ E6)*)a!" O!-0"&" &a!&e**e#.

EN ANC[G.R. No. L3073. Oto(#% 29, 1971.]

VICENTE -. DO-INGO, %#$%#s#&t#' () 4*s 4#*%s, ANTONIARA-"NDO VDA. DE DO-INGO, RICARDO, CESAR, A-ELIA,VICENTE /R., SALVADOR, IRENE +&' /OSELITO, + su%&+5#'

DO-INGO, petitioners&appe''ants, vs. GREGORIO -.DO-INGO, intervenor&respondent .

Teo('o Leonin o% $#t*t*o%s+$$#+&ts.Osorio, Osorio ) Osorio o% %#s$o&'#&t+$$###.Teo('o P. P!risi*a *& 4*s o& (#4+ +s *&t#%8#&o%

%#s$o&'#&t.

SLLA"S

1. CIVIL LAW; AGENCY; ARTICLES 11 AND 1 OF THE NEWCIVIL CODE; DUTY OF AGENT TO PRINCIPAL. — The #'$)e a!#*)a/)*)$)e "+ a /r"=er $" h) e6(*",er are ee!$)a**, $h"e wh)&h a!a-e!$ "we $" h) (r)!&)(a*. C"!e2'e!$*,5 $he #e&))8e *e-a*(r"8))"! are +"'!# )! Ar$)&*e 11 a!# 1 "+ $he New C)8)*

C"#e. The a+"re&)$e# (r"8))"! #e6a!# $he '$6"$ -""# +a)$h5#e*)$,5 h"!e$,5 &a!#"r a!# +a)r!e "! $he (ar$ "+ $he a-e!$5 $he

rea* e$a$e /r"=er )! $h) &ae5 $" h) (r)!&)(a*5 $he 8e!#"r. The*aw )6("e '("! $he a-e!$ $he a/"*'$e "/*)-a$)"! $" 6a=e a +'**#)&*"'re "r &"6(*e$e a&&"'!$ $" h) (r)!&)(a* "+ a** h)$ra!a&$)"! a!# "$her 6a$er)a* +a&$ re*e8a!$ $" $he a-e!&,5 "6'&h " $ha$ $he *aw a a6e!#e# #"e !"$ &"'!$e!a!&e a!,$)('*a$)"! e%e6($)!- $he a-e!$ +r"6 '&h a! "/*)-a$)"! a!#&"!)#er '&h a! e%e6($)"! a 8")#. The #'*, "+ a! a-e!$ )

*)=e!e# $" $ha$ "+ a $r'$ee. Th) ) !"$ a $e&h!)&a* "r ar/)$rar, r'*e/'$ a r'*e +"'!#e# "! $he h)-he$ a!# $r'e$ (r)!&)(*e "+ 6"ra*)$, awe** a "+ $he $r)&$e$ 0'$)&e.3. ID.; ID.; ID.; ID.; EFFECT OF BREACH OF LOYALTY. — A! a-e!$ wh"$a=e a e&re$ (r"$ )! $he !a$'re "+ a /"!'5 -ra$')$, "r (er"!a*/e!e$ +r"6 $he 8e!#ee5 w)$h"'$ re8ea*)!- $he a6e $" h)(r)!&)(a*5 $he 8e!#"r5 ) -')*$, "+ a /rea&h "+ h) *",a*$, $" $he(r)!&)(a* a!# +"r+e)$ h) r)-h$ $" &"**e&$ $he &"66))"! +r"6 h)(r)!&)(a*5 e8e! )+ $he (r)!&)(a* #"e !"$ '?er a!, )!0'r, /, rea"!"+ '&h /rea&h "+ #e*)$,5 "r $ha$ he "/$a)!e# /e$$er re'*$ "r $ha$$he a-e!&, ) a -ra$')$"' "!e5 "r $ha$ 'a-e "r &'$"6 a**"w )$5/e&a'e $he r'*e ) $" (re8e!$ $he (")/)*)$, "+ a!, wr"!-5 !"$ $"

re6e#, "r re(a)r a! a&$'a* #a6a-e.9. ID.; ID.; ID.; ID.; ID.; TAING OF SECRET PROFIT5 TANTA4OUNT TO BREACH. — B, $a=)!- '&h (r"$ "r /"!' "r -)+$ "r propina+r"6 $he 8e!#ee5 $he a-e!$ $here/, a'6e a (")$)"! wh"**,)!&"!)$e!$ w)$h $ha$ "+ /e)!- a! a-e!$ +"r h) (r)!&)(a*5 wh" ha ar)-h$ $" $rea$ h)65 )!"+ar a h) &"66))"! ) &"!&er!e#5 a )+ !"a-e!&, ha# e%)$e#. The +a&$ $ha$ $he (r)!&)(a* 6a, ha8e /ee!/e!e$e# /, $he 8a*'a/*e er8)&e "+ $he a)# a-e!$ #"e !"$e%&'*(a$e $he a-e!$ wh" ha "!*, h)6e*+ $" /*a6e +"r '&h a re'*$/, rea"! "+ h) $rea&her, "r (er#,.:. ID.; ID.; ID.; ID.; ID.; LIABILITY FOR ESTAFA. — Be&a'e "+ h)re("!)/)*)$, '!#er $he a+"re&)$e# Ar$)&*e 135 a! a-e!$ ) *)=ew)e

*)a/*e +"r e$a+a +"r +a)*'re $" #e*)8er $" h) (r)!&)(a* $he $"$a*a6"'!$ &"**e&$e# /, h)6 )! /eha*+ "+ h) (r)!&)(a* a!# &a!!"$ re$a)!$he &"66))"! (er$a)!)!- $" h)6 /, '/$ra&$)!- $he a6e +r"6 h)&"**e&$)"!.>. ID.; ID.; ID.; ID.; ID.; ID.; PRINCIPAL ENTITLED TO RECOVERY OFCO44ISSIONS PAID. — Where a (r)!&)(a* ha (a)# a! a-e!$ "r/r"=er a &"66))"! wh)*e )-!"ra!$ "+ $he +a&$ $ha$ $he *a$$er ha/ee! '!+a)$h+'*5 $he (r)!&)(a* 6a, re&"8er /a&= $he &"66))"!(a)#5 )!&e a! a-e!$ "r /r"=er wh" ha /ee! '!+a)$h+'* ) !"$e!$)$*e# $" a!, &"6(e!a$)"!. I+ $he a-e!$ #"e !"$ &"!#'&$ h)6e*+ w)$h e!$)re #e*)$, $"war# h) (r)!&)(a*5 /'$ ) -')*$, "+ $a=)!- ae&re$ (r"$ "r &"66))"! )! re-ar# $he 6a$$er )! wh)&h he )

e6(*",e#5 he *"e h) r)-h$ $" &"6(e!a$)"! "! $he -r"'!# $ha$ heha $a=e! a (")$)"! wh"**, )!&"!)$e!$ w)$h $ha$ "+ a-e!$ +"r h)

13


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e6(*",er5 a!# wh)&h -)8e h) e6(*",er5 '("! #)&"8er)!- )$5 $her)-h$ $" $rea$ h)6 " +ar a &"6(e!a$)"!5 a$ *ea$5 ) &"!&er!e# a)+ !" a-e!&, ha# e%)$e#. Th) 6a, "(era$e $" -)8e $" $he (r)!&)(a*$he /e!e$ "+ 8a*'a/*e er8)&e re!#ere# /, $he a-e!$5 /'$ $hea-e!$ ha "!*, h)6e*+ $" /*a6e +"r $ha$ re'*$.. ID.; ID.; ID.; ID.; ID.; ACCOUNTABILITY OF AGENT FOR ALLPROFITS RECEIVED. — A a -e!era* r'*e5 )$ ) a /rea&h "+ -""# +a)$h

a!# *",a*$, $" h) (r)!&)(a* +"r a! a-e!$5 wh)*e $he a-e!&, e%)$5 "$" #ea* w)$h $he '/0e&$ 6a$$er $here"+5 "r w)$h )!+"r6a$)"!a&2')re# #'r)!- $he &"'re "+ $he a-e!&,5 a $" 6a=e a (r"$ "'$ "+ )$ +"r h)6e*+ )! e%&e "+ h) *aw+'* &"6(e!a$)"!; a!# )+ he #"e "he 6a, /e he*# a a $r'$ee a!# 6a, /e &"6(e**e# $" a&&"'!$ $"h) (r)!&)(a* +"r a** (r"$5 a#8a!$a-e5 r)-h$5 "r (r)8)*e-ea&2')re# /, h)6 )! '&h #ea*)!-5 whe$her )! (er+"r6a!&e "r )!8)"*a$)"! "+ h) #'$)e5 a!# /e re2')re# $" $ra!+er $he6 $" h)(r)!&)(a* '("! /e)!- re)6/'re# +"r h) e%(e!#)$'re +"r $he a6e5'!*e $he (r)!&)(a* ha &"!e!$e# $" "r ra$)e# $he $ra!a&$)"!=!"w)!- $ha$ /e!e$ "r (r"$ w"'*# a&&r'e5 "r ha# a&&r'e#5 $" $hea-e!$5 "r '!*e w)$h '&h =!"w*e#-e he ha a**"we# $he a-e!$ "

a $" &ha!-e h) &"!#)$)"! $ha$ he &a!!"$ /e ('$ )! $a$' 2'". Thea((*)&a$)"! "+ $h) r'*e ) !"$ a?e&$e# /, $he +a&$ $ha$ $he (r)!&)(a*#)# !"$ '?er a!, )!0'r, /, rea"! "+ $he a-e!$M #ea*)!-5 "r $ha$he )! +a&$ "/$a)!e# /e$$er re'*$; !"r ) )$ a?e&$e# /, $he +a&$ $ha$$here ) a 'a-e "r &'$"6 $" $he &"!$rar,5 "r $ha$ $he a-e!&, ) a-ra$')$"' "!e.. ID.; ID.; ID.; ID.; WHEN INAPPLICABLE. — The #'$, e6/"#)e# )!Ar$)&*e 11 "+ $he New C)8)* C"#e w)** !"$ a((*, )+ $he a-e!$ "r/r"=er a&$e# "!*, a a 6)##*e6a! w)$h $he $a= "+ 6ere*, /r)!-)!-$"-e$her $he 8e!#"r a!# 8e!#ee5 wh" $he6e*8e $herea+$er w)**!e-"$)a$e "! $he $er6 a!# &"!#)$)"! "+ $he $ra!a&$)"!. Ne)$herw"'*# $he r'*e a((*, )+ $he a-e!$ "r /r"=er ha# )!+"r6e# $he

(r)!&)(a* "+ $he -)+$ "r /"!' "r (r"$ he re&e)8e# +r"6 $he('r&haer a!# h) (r)!&)(a* #)# !"$ "/0e&$ $here$". Here)!#e+e!#a!$Ja((e**ee Gre-"r)" D"6)!-" wa !"$ 6ere*, a 6)##*e6a!"+ $he (e$)$)"!erJa((e**a!$ V)&e!$e D"6)!-" a!# $he /',er O&ar #eLe"!. He wa $he /r"=er a!# a-e!$ "+ a)# (e$)$)"!erJa((e**a!$ "!*,.A!# here)! (e$)$)"!erJa((e**a!$ wa !"$ aware "+ $he -)+$ "+ O!e Th"'a!# Pe" P15. re&e)8e# /, Gre-"r)" D"6)!-" +"r6$he (r"(e&$)8e /',er; 6'&h *e #)# he &"!e!$ $" h) a-e!$Ma&&e($)!- '&h a -)+$.

D E C I S I O N4AASIAR5 J (Pe$)$)"!erJa((e**a!$ V)&e!$e 4. D"6)!-"5 !"w #e&eae# a!#

re(ree!$e# /, h) he)r5 A!$"!)!a Ra,6'!#" 8#a. #e D"6)!-"5R)&ar#"5 Cear5 A6e*)a5 V)&e!$e @r.5 Sa*8a&)"!5 Ire!e a!# @"e*)$"5 a**

'r!a6e# D"6)!-"5 "'-h$ $he re8era* "+ $he 6a0"r)$, #e&))"!#a$e# 4ar&h 135 1 "+ $he S(e&)a* D)8))"! "+ F)8e "+ $he C"'r$ "+ A((ea* ar6)!- $he 0'#-6e!$ "+ $he $r)a* &"'r$5 wh)&h e!$e!&e#$he a)# V)&e!$e 4. D"6)!-" $" (a, Gre-"r)" 4. D"6)!-"P359.> a!# $he )!$er8e!"r Te"*" P. P'r))6a P35.> w)$h*e-a* )!$ere$ "! /"$h a6"'!$ +r"6 $he #a$e "+ $he *)!- "+ $he&"6(*a)!$5 $" (a, Gre-"r)" D"6)!-" P15. a 6"ra* a!#

e%e6(*ar, #a6a-e a!# P>. a a$$"r!e,M +ee (*' &"$. The +"**"w)!- +a&$ were +"'!# $" /e e$a/*)he# /, $he 6a0"r)$, "+ $he S(e&)a* D)8))"! "+ F)8e "+ $he C"'r$ "+ A((ea*I! a #"&'6e!$ E%h)/)$ 7A7 e%e&'$e# "! @'!e 35 1>5 V)&e!$e 4.D"6)!-" -ra!$e# Gre-"r)" D"6)!-"5 a rea* e$a$e /r"=er5 $hee%&*')8e a-e!&, $" e** h) *"$ N". 9 "+ P)e#a# E$a$e w)$h a!area "+ a/"'$ 5: 2'are 6e$er a$ $he ra$e "+ P3. (er 2'are6e$er "r +"r P15>:. w)$h a &"66))"! "+ > "! $he $"$a*(r)&e5 )+ $he (r"(er$, ) "*# /, V)&e!$e "r /, a!,"!e e*e #'r)!- $he9J#a, #'ra$)"! "+ $he a-e!&, "r )+ $he (r"(er$, ) "*# /, V)&e!$ew)$h)! $hree 6"!$h +r"6 $he $er6)!a$)"! "+ $he a-e!&, $" a('r&haer $" wh"6 )$ wa '/6)$$e# /, Gre-"r)" #'r)!- $he

&"!$)!'a!&e "+ $he a-e!&, w)$h !"$)&e $" V)&e!$e. The a)# a-e!&,&"!$ra&$ wa )! $r)(*)&a$e5 "!e &"(, wa -)8e! $" V)&e!$e5 wh)*e $he"r)-)!a* a!# a!"$her &"(, were re$a)!e# /, Gre-"r)".O! @'!e 95 1>5 Gre-"r)" a'$h"r)e# $he )!$er8e!"r Te"*" P.P'r))6a $" *""= +"r a /',er5 (r"6))!- h)6 "!eJha*+ "+ $he >&"66))"!. Therea+$er5 Te"*" P'r))6a )!$r"#'&e# O&ar #e Le"! $" Gre-"r)"a a (r"(e&$)8e /',er.O&ar #e Le"! '/6)$$e# a wr)$$e! "?er wh)&h wa 8er, 6'&h *"wer$ha! $he (r)&e "+ P3. (er 2'are 6e$er E%h)/)$ 7B7. V)&e!$e#)re&$e# Gre-"r)" $" $e** O&ar #e Le"! $" ra)e h) "?er. A+$ere8era* &"!+ere!&e /e$wee! Gre-"r)" a!# O&ar #e Le"!5 $he

*a$$er ra)e# h) "?er $" P15. "! @'!e 35 1> ae8)#e!&e# /, E%h)/)$ 7C75 $" wh)&h V)&e!$e a-ree# /, )-!)!-E%h)/)$ 7C7. U("! #e6a!# "+ V)&e!$e5 O&ar #e Le"! )'e# $" h)6 a&he&= )! $he a6"'!$ "+ P15. a ear!e$ 6"!e,5 a+$er wh)&hV)&e!$e a#8a!&e# $" Gre-"r)" $he '6 "+ P9.. O&ar #e Le"!&"!r6e# h) +"r6er "?er $" (a, +"r $he (r"(er$, a$ P1.3 (er2'are 6e$er )! a!"$her *e$$er5 E%h)/)$ 7D7. S'/e2'e!$*,5 V)&e!$ea=e# +"r a! a##)$)"!a* a6"'!$ "+ P15. a ear!e$ 6"!e,5wh)&h O&ar #e Le"! (r"6)e# $" #e*)8er $" h)6. Therea+$er5 E%h)/)$7C7 wa a6e!#e# $" $he e?e&$ $ha$ O&ar #e Le"! w)** 8a&a$e "! "ra/"'$ Se($e6/er 1>5 1> h) h"'e a!# *"$ a$ De!8er S$ree$5Q'e"! C)$, wh)&h ) (ar$ "+ $he ('r&hae (r)&e. I$ wa a-a)!

a6e!#e# $" $he e?e&$ $ha$ O&ar w)** 8a&a$e h) h"'e a!# *"$ "!De&e6/er 15 1>5 /e&a'e h) w)+e wa "! $he +a6)*, wa, a!#

19


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V)&e!$e &"'*# $a, )! *"$ N". 9 "+ P)e#a# E$a$e '!$)* @'!e 15 1>5)! a #"&'6e!$ #a$e# @'!e 95 1> $he ,ear 1> $here)! ) a6ere $,("-ra(h)&a* err"r a!# 6ar=e# E%h)/)$ 7D7. P'r'a!$ $" h)(r"6)e $" Gre-"r)"5 O&ar -a8e h)6 a a -)+$ "r propina $he '6 "+ O!e Th"'a!# Pe" P15. +"r '&&ee#)!- )! (er'a#)!-V)&e!$e $" e** h) *"$ a$ P1.3 (er 2'are 6e$er "r a $"$a* )! r"'!#-'re "+ O!e H'!#re# N)!e Th"'a!# Pe" P15.. Th) -)+$

"+ O!e Th"'a!# Pe" P15. wa !"$ #)&*"e# /, Gre-"r)"$" V)&e!$e. Ne)$her #)# O&ar (a, V)&e!$e $he a##)$)"!a* a6"'!$ "+ O!e Th"'a!# Pe" P15. /, wa, "+ ear!e$ 6"!e,. Whe!$he #ee# "+ a*e wa !"$ e%e&'$e# "! A'-'$ 15 1> a $)('*a$e#)! E%h)/)$ 7C7 !"r "! A'-'$ 15 1> a e%$e!#e# /, V)&e!$e5O&ar $"*# Gre-"r)" $ha$ he #)# !"$ re&e)8e h) 6"!e, +r"6 h)/r"$her )! $he U!)$e# S$a$e5 +"r wh)&h rea"! he wa -)8)!- '( $he!e-"$)a$)"! )!&*'#)!- $he a6"'!$ "+ O!e Th"'a!# Pe"P15. -)8e! a ear!e$ 6"!e, $" V)&e!$e a!# $he O!e Th"'a!# Pe" P15. -)8e! $" Gre-"r)" a propina "r -)+$.Whe! O&ar #)# !"$ ee h)6 a+$er e8era* wee=5 Gre-"r)" e!e#"6e$h)!- h,. S"5 he we!$ $" V)&e!$e a!# rea# a ("r$)"! "+

E%h)/)$ 7A7 6ar=e# E%h)/)$ 7AJ17 $" $he e?e&$ $ha$ V)&e!$e wa $)**&"66)$$e# $" (a, h)6 > &"66))"!5 )+ $he a*e ) &"!'66a$e#w)$h)! $hree 6"!$h a+$er $he e%()ra$)"! "+ $he 9J#a, (er)"# "+ $hee%&*')8e a-e!&, )! h) +a8"r +r"6 $he e%e&'$)"! "+ $he a-e!&,&"!$ra&$ "! @'!e 35 1> $" a ('r&haer /r"'-h$ /, Gre-"r)" $"V)&e!$e #'r)!- $he a)# 9J#a, (er)"#. V)&e!$e -ra//e# $he "r)-)!a*"+ E%h)/)$ 7A7 a!# $"re )$ $" ()e&e. Gre-"r)" he*# h) (ea&e5 !"$wa!$)!- $" a!$a-"!)e V)&e!$e +'r$her5 /e&a'e he ha# $)** $he#'(*)&a$e "+ E%h)/)$ 7A7. Fr"6 h) 6ee$)!- w)$h V)&e!$e5 Gre-"r)"(r"&ee#e# $" $he "&e "+ $he Re-)$er "+ Dee# "+ Q'e"! C)$,5where he #)&"8ere# E%h)/)$ 7G75 a #ee# "+ a*e e%e&'$e# "!Se($e6/er 15 1> /, A6(ar" D)a5 w)+e "+ O&ar #e Le"!5 "8er

$he)r h"'e a!# *"$ a$ N". : De!8er S$ree$5 C'/a"5 Q'e"! C)$,5 )!+a8"r "+ V)&e!$e a #"w! (a,6e!$ /, O&ar #e Le"! "! $he('r&hae (r)&e "+ V)&e!$eM *"$ N". 9 "+ P)e#a# E$a$e. U("! $h'*ear!)!- $ha$ V)&e!$e "*# h) (r"(er$, $" $he a6e /',er5 O&ar #eLe"! a!# h) w)+e5 he #e6a!#e# )! wr)$)!- (a,6e!$ "+ h)&"66))"! "! $he a*e (r)&e "+ O!e H'!#re# N)!e Th"'a!# Pe"P15.5 E%h)/)$ 7H7. He a*" &"!+erre# w)$h O&ar #e Le"!5wh" $"*# h)6 $ha$ V)&e!$e we!$ $" h)6 a!# a=e# h)6 $" e*)6)!a$eGre-"r)" )! $he $ra!a&$)"! a!# $ha$ he w"'*# e** h) (r"(er$, $"h)6 +"r O!e H'!#re# F"'r Th"'a!# Pe" P1:5.. I!V)&e!$eM re(*, $" Gre-"r)"M *e$$er5 E%h)/)$ 7H75 V)&e!$e $a$e# $ha$Gre-"r)" ) !"$ e!$)$*e# $" $he > &"66))"! /e&a'e he "*# $he

(r"(er$, !"$ $" Gre-"r)"M /',er5 O&ar #e Le"!5 /'$ $" a!"$her/',er5 A6(ar" D)a5 w)+e "+ O&ar #e Le"!.

The C"'r$ "+ A((ea* +"'!# +r"6 $he e8)#e!&e $ha$ E%h)/)$ 7A75 $hee%&*')8e a-e!&, &"!$ra&$5 ) -e!')!e; $ha$ A6(ar" D)a5 $he8e!#ee5 /e)!- $he w)+e "+ O&ar #e Le"!5 $he a*e /, V)&e!$e "+ h)(r"(er$, ) (ra&$)&a**, a a*e $" O&ar #e Le"! )!&e h'/a!# a!#w)+e ha8e &"66"! "r )#e!$)&a* )!$ere$; $ha$ Gre-"r)" a!#)!$er8e!"r Te"*" P'r))6a were $he e&)e!$ &a'e )! $he

&"!'66a$)"! "+ $he a*e )! +a8"r "+ $he ("'e O&ar #e Le"!a!# A6(ar" D)a; $ha$ O&ar #e Le"! (a)# Gre-"r)" $he '6 "+ O!e Th"'a!# Pe" P15. a 7(r"()!a7 "r -)+$ a!# !"$ aa##)$)"!a* ear!e$ 6"!e, $" /e -)8e! $" $he (*a)!$)?5 /e&a'eE%h)/)$ 775 V)&e!$eM *e$$er a##ree# $" O&ar #e Le"! w)$hre(e&$ $" $he a##)$)"!a* ear!e$ 6"!e,5 #"e !"$ a((ear $" ha8e/ee! a!were# /, O&ar #e Le"! a!# $here+"re $here ) !" wr)$)!-"r #"&'6e!$ '(("r$)!- O&ar #e Le"!M $e$)6"!, $ha$ he (a)# a!a##)$)"!a* ear!e$ 6"!e, "+ O!e Th"'a!# Pe" P15. $"Gre-"r)" +"r #e*)8er, $" V)&e!$e5 '!*)=e $he r$ a6"'!$ "+ O!e Th"'a!# Pe" P15. (a)# /, O&ar #e Le"! $" V)&e!$e aear!e$ 6"!e,5 e8)#e!&e# /, $he *e$$er E%h)/)$ 7:7; a!# $ha$

V)&e!$e #)# !"$ e8e! 6e!$)"! '&h a##)$)"!a* ear!e$ 6"!e, )! h)$w" re(*)e E%h)/)$ 7I7 a!# 7@7 $" Gre-"r)"M *e$$er "+ #e6a!# "+ $he> &"66))"!. The $hree )'e )! $h) a((ea* are 1 whe$her $he +a)*'re "! $he(ar$ "+ Gre-"r)" $" #)&*"e $" V)&e!$e $he (a,6e!$ $" h)6 /, O&ar#e Le"! "+ $he a6"'!$ "+ O!e Th"'a!# Pe" P15. a -)+$"r 7(r"()!a7 +"r ha8)!- (er'a#e# V)&e!$e $" re#'&e $he ('r&hae(r)&e +r"6 P3. $" P1.3 (er 2'are 6e$er5 " &"!$)$'$e +ra'# a$" &a'e a +"r+e)$'re "+ h) > &"66))"! "! $he a*e (r)&e; 3whe$her V)&e!$e "r Gre-"r)" h"'*# /e *)a/*e #)re&$*, $" $he)!$er8e!"r Te"*" P'r))6a +"r $he *a$$erM hare )! $he e%(e&$e#&"66))"! "+ Gre-"r)" /, rea"! "+ $he a*e; a!# 9 whe$her $he

awar# "+ *e-a* )!$ere$5 6"ra* a!# e%e6(*ar, #a6a-e5 a$$"r!e,M+ee a!# &"$5 wa (r"(er.U!+"r$'!a$e*,5 $he 6a0"r)$, "()!)"! (e!!e# /, @'$)&e E#)*/er$"S"r)a!" a!# &"!&'rre# )! /, @'$)&e @'a! E!r)2'e #)# !"$ $"'&h "!$hee )'e wh)&h were e%$e!)8e*, #)&'e# /, @'$)&e 4a-!"Ga$6a)$a! )! h) #)e!$)!- "()!)"!. H"we8er5 @'$)&e E-'erra5 )!h) &"!&'rr)!- "()!)"!5 ar6e# $ha$ )$ #"e !"$ &"!$)$'$e /rea&h"+ $r'$ "r +ra'# "! $he (ar$ "+ $he /r"=er a!# re-ar#e# $he a6e a6ere*, (ar$ "+ $he wh"*e (r"&e "+ /r)!-)!- a/"'$ $he 6ee$)!- "+ $he 6)!# "+ $he e**er a!# $he ('r&haer a!# $ha$ $he &"66)$6e!$+r"6 $he (r"(e&$)8e /',er $ha$ he w"'*# -)8e a rewar# $" Gre-"r)")+ he &"'*# e?e&$ /e$$er $er6 +"r h)6 +r"6 $he e**er5 )!#e(e!#e!$

"+ h) *e-)$)6a$e &"66))"!5 ) !"$ +ra'#'*e!$5 /e&a'e $he(r)!&)(a* &a! re0e&$ $he $er6 "?ere# /, $he (r"(e&$)8e /',er )+ he

1:


15/71

/e*)e8e $ha$ '&h $er6 are "!er"' "r #)a#8a!$a-e"' $" h)6.O! $he "$her ha!#5 @'$)&e Ga$6a)$a!5 w)$h wh"6 @'$)&e A!$"!)"Ca)are &"!&'rre#5 he*# $he 8)ew $ha$ '&h a! a&$ "! $he (ar$ "+ Gre-"r)" wa +ra'#'*e!$ a!# &"!$)$'$e# a /rea&h "+ $r'$5 wh)&hh"'*# #e(r)8e h)6 "+ h) r)-h$ $" $he &"66))"!. The #'$)e a!# *)a/)*)$)e "+ a /r"=er $" h) e6(*",er are ee!$)a**,$h"e wh)&h a! a-e!$ "we $" h) (r)!&)(a*. 1

C"!e2'e!$*,5 $he #e&))8e *e-a* (r"8))"! are +"'!# )! Ar$)&*e11 a!# 1 "+ $he New C)8)* C"#e.7Ar$. 11. E8er, a-e!$ ) /"'!# $" re!#er a! a&&"'!$ "+ h)$ra!a&$)"! a!# $" #e*)8er $" $he (r)!&)(a* wha$e8er he 6a, ha8ere&e)8e# /, 8)r$'e "+ $he a-e!&,5 e8e! $h"'-h )$ 6a, !"$ /e "w)!-$" $he (r)!&)(a*.7E8er, $)('*a$)"! e%e6($)!- $he a-e!$ +r"6 $he "/*)-a$)"! $"re!#er a! a&&"'!$ ha** /e 8")#.7%%% %%% %%%7Ar$. 1. The a-e!$ ) re("!)/*e !"$ "!*, +"r +ra'#5 /'$ a*" +"r!e-*)-e!&e5 wh)&h ha** /e 0'#-e# w)$h 6"re "r *e r)-"r /, $he&"'r$5 a&&"r#)!- $" whe$her $he a-e!&, wa "r wa !"$ +"r a

&"6(e!a$)"!.7Ar$)&*e 11 "+ $he New C)8)* C"#e a6e!# Ar$)&*e 13 "+ $he "*#S(a!)h C)8)* C"#e wh)&h (r"8)#e $ha$7Ar$. 13. E8er, a-e!$ ) /"'!# $" -)8e a! a&&"'!$ "+ h)$ra!a&$)"! a!# $" (a, $" $he (r)!&)(a* wha$e8er he 6a, ha8ere&e)8e# /, 8)r$'e "+ $he a-e!&,5 e8e! $h"'-h wha$ he hare&e)8e# ) !"$ #'e $" $he (r)!&)(a*.7 The 6"#)&a$)"! &"!$a)!e# )! $he r$ (ara-ra(h "+ Ar$)&*e 11&"!)$ )! &ha!-)!- $he (hrae 7$" (a,7 $" 7$" #e*)8er75 wh)&h *a$$er$er6 ) 6"re &"6(rehe!)8e $ha! $he +"r6er.Para-ra(h 3 "+ Ar$)&*e 11 ) a !ew a##)$)"! #e)-!e# $" $re $heh)-he$ *",a*$, $ha$ ) re2')re# $" a! a-e!$ — &"!#e6!)!- a 8")#

a!, $)('*a$)"! e%e6($)!- $he a-e!$ +r"6 $he #'$, a!# *)a/)*)$,)6("e# "! h)6 )! (ara-ra(h "!e $here"+.Ar$)&*e 1 "+ $he New C)8)* C"#e ) ee!$)a**, a re)!$a$e6e!$ "+ Ar$)&*e 13 "+ $he "*# S(a!)h C)8)* C"#e wh)&h rea# $h'7Ar$. 13. The a-e!$ ) *)a/*e !"$ "!*, +"r +ra'#5 /'$ a*" +"r!e-*)-e!&e5 wh)&h ha** /e 0'#-e# w)$h 6"re "r *e e8er)$, /, $he&"'r$5 a&&"r#)!- $" whe$her $he a-e!&, wa -ra$')$"' "r +"r a(r)&e "r rewar#.7 The a+"re&)$e# (r"8))"! #e6a!# $he '$6"$ -""# +a)$h5 #e*)$,5h"!e$,5 &a!#"r a!# +a)r!e "! $he (ar$ "+ $he a-e!$5 $he rea*e$a$e /r"=er )! $h) &ae5 $" h) (r)!&)(a*5 $he 8e!#"r. The *aw)6("e '("! $he a-e!$ $he a/"*'$e "/*)-a$)"! $" 6a=e a +'**

#)&*"'re "r &"6(*e$e a&&"'!$ $" h) (r)!&)(a* "+ a** h)$ra!a&$)"! a!# "$her 6a$er)a* +a&$ re*e8a!$ $" $he a-e!&,5 "

6'&h " $ha$ $he *aw a a6e!#e# #"e !"$ &"'!$e!a!&e a!,$)('*a$)"! e%e6($)!- $he a-e!$ +r"6 '&h a! "/*)-a$)"! a!#&"!)#er '&h a! e%e6($)"! a 8")#. The #'$, "+ a! a-e!$ )*)=e!e# $" $ha$ "+ a $r'$ee. Th) ) !"$ a $e&h!)&a* "r ar/)$rar, r'*e/'$ a r'*e +"'!#e# "! $he h)-he$ a!# $r'e$ (r)!&)(*e "+ 6"ra*)$, awe** a "+ $he $r)&$e$ 0'$)&e. 3He!&e5 a! a-e!$ wh" $a=e a e&re$ (r"$ )! $he !a$'re "+ a /"!'5

-ra$')$, "r (er"!a* /e!e$ +r"6 $he 8e!#ee5 w)$h"'$ re8ea*)!- $hea6e $" h) (r)!&)(a*5 $he 8e!#"r5 ) -')*$, "+ a /rea&h "+ h) *",a*$,$" $he (r)!&)(a* a!# +"r+e)$ h) r)-h$ $" &"**e&$ $he &"66))"! +r"6h) (r)!&)(a*5 e8e! )+ $he (r)!&)(a* #"e !"$ '?er a!, )!0'r, /,rea"! "+ '&h /rea&h "+ #e*)$,5 "r $ha$ he "/$a)!e# /e$$er re'*$"r $ha$ $he a-e!&, ) a -ra$')$"' "!e5 "r $ha$ 'a-e "r &'$"6a**"w )$; /e&a'e $he r'*e ) $" (re8e!$ $he (")/)*)$, "+ a!,wr"!-5 !"$ $" re6e#, "r re(a)r a! a&$'a* #a6a-e. 9 B, $a=)!- '&h(r"$ "r /"!' "r -)+$ "r propina +r"6 $he 8e!#ee5 $he a-e!$$here/, a'6e a (")$)"! wh"**, )!&"!)$e!$ w)$h $ha$ "+ /e)!-a! a-e!$ +"r h) (r)!&)(a*5 wh" ha a r)-h$ $" $rea$ h)65 )!"+ar ah) C"66))"! ) &"!&er!e#5 a )+ !" a-e!&, ha# e%)$e#. The +a&$

$ha$ $he (r)!&)(a* 6a, ha8e /ee! /e!e$e# /, $he 8a*'a/*eer8)&e "+ $he a)# a-e!$ #"e !"$ e%&'*(a$e $he a-e!$ wh" ha"!*, h)6e*+ $" /*a6e +"r '&h a re'*$ /, rea"! "+ h) $rea&her, "r(er#,. Th) C"'r$ ha /ee! &"!)$e!$ )! $he r)-"r"' a((*)&a$)"! "+ Ar$)&*e13 "+ $he "*# S(a!)h C)8)* C"#e. Th'5 +"r +a)*'re $" #e*)8er '6"+ 6"!e, (a)# $" h)6 a a! )!'ra!&e a-e!$ +"r $he a&&"'!$ "+ h)e6(*",er a re2')re# /, a)# Ar$)&*e 135 a)# )!'ra!&e a-e!$wa &"!8)&$e# "+ e$a+a. : A! a#6)!)$ra$"r "+ a! e$a$e wa*)=ew)e *)a/*e '!#er $he a6e Ar$)&*e 13 +"r +a)*'re $" re!#er a!a&&"'!$ "+ h) a#6)!)$ra$)"! $" $he he)r '!*e $he he)r&"!e!$e# $here$" "r are e$"((e# /, ha8)!- a&&e($e# $he

&"rre&$!e "+ h) a&&"'!$ (re8)"'*, re!#ere#. >Be&a'e "+ h) re("!)/)*)$, '!#er $he a+"re&)$e# Ar$)&*e 135 a!a-e!$ ) *)=ew)e *)a/*e +"r e$a+a +"r +a)*'re $" #e*)8er $" h)(r)!&)(a* $he $"$a* a6"'!$ &"**e&$e# /, h)6 )! /eha*+ "+ h) (r)!&)(a*a!# &a!!"$ re$a)! $he &"66))"! (er$a)!)!- $" h)6 /, '/$ra&$)!-$he a6e +r"6 h) &"**e&$)"!. A *aw,er ) e2'a**, *)a/*e '!#er a)# Ar$)&*e 13 )+ he +a)* $"#e*)8er $" h) &*)e!$ a** $he 6"!e, a!# (r"(er$, re&e)8e# /, h)6 +"rh) &*)e!$ #e()$e h) a$$"r!e,M *)e!. The #'$, "+ a &"66))"!a-e!$ $" re!#er a +'** a&&"'!$ "+ h) "(era$)"! $" h) (r)!&)(a* ware)$era$e# )! D'har$5 e$&. 8. 4a&)a. The A6er)&a! 0'r)(r'#e!&e "! $h) &"re ) we**J!)-h '!a!)6"'.

7Where a (r)!&)(a* ha (a)# a! a-e!$ "r /r"=er a &"66))"! wh)*e)-!"ra!$ "+ $he +a&$ $ha$ $he *a$$er ha /ee! '!+a)$h+'*5 $he (r)!&)(a*

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16/71

6a, re&"8er /a&= $he &"66))"! (a)#5 )!&e a! a-e!$ "r /r"=erwh" ha /ee! '!+a)$h+'* ) !"$ e!$)$*e# $" a!, &"6(e!a$)"!.%%% %%% %%%7I! #)&')!- $he r)-h$ "+ $he (r)!&)(a* $" re&"8er &"66))"!re$a)!e# /, a! '!+a)$h+'* a-e!$5 $he &"'r$ )! L)$$*e 8. Ph)(( 1113 4a. 9915 : NE 35 9: LRA NS 1:5 a)# MI$ ) we** e$$*e#$ha$ $he a-e!$ ) /"'!# $" e%er&)e $he '$6"$ -""# +a)$h )! h)

#ea*)!- w)$h h) (r)!&)(a*. A L"r# Ca)r! a)#5 $h) r'*e 7) !"$ a$e&h!)&a* "r ar/)$rar, r'*e. I$ ) a r'*e +"'!#e# "! $he h)-he$ a!#$r'e$ (r)!&)(*e "+ 6"ra*)$,.7 Par=er 8. 4&e!!a 1: LR 1 ChE!- 5 11.. I+ $he a-e!$ #"e !"$ &"!#'&$ h)6e*+ w)$h e!$)re#e*)$, $"war# h) (r)!&)(a*5 /'$ ) -')*$, "+ $a=)!- a e&re$ (r"$ "r&"66))"! )! re-ar# $he 6a$$er )! wh)&h he ) e6(*",e#5 he *"eh) r)-h$ $" &"6(e!a$)"! "! $he -r"'!# $ha$ he ha $a=e! a(")$)"! wh"**, )!&"!)$e!$ w)$h $ha$ "+ a-e!$ +"r h) e6(*",er5 a!#wh)&h -)8e h) e6(*",er5 '("! #)&"8er)!- )$5 $he r)-h$ $" $rea$ h)6" +ar a &"6(e!a$)"!5 a$ *ea$5 ) &"!&er!e# a )+ !" a-e!&, ha#e%)$e#. Th) 6a, "(era$e $" -)8e $" $he (r)!&)(a* $he /e!e$ "+ 8a*'a/*e er8)&e re!#ere# /, $he a-e!$5 /'$ $he a-e!$ ha "!*,

h)6e*+ $" /*a6e +"r $ha$ re'*$.M%%% %%% %%%7The )!$e!$ w)$h wh)&h $he a-e!$ $""= a e&re$ (r"$ ha /ee! he*#)66a$er)a* where $he a-e!$ ha )! +a&$ e!$ere# )!$" a re*a$)"!h)()!&"!)$e!$ w)$h h) a-e!&,5 )!&e $he *aw &"!#e6! $he&"rr'($)!- $e!#e!&, "+ $he )!&"!)$e!$ re*a$)"!h)(. L)$$*e 8.Ph)(( 111 : NE 3.7 7A a -e!era* r'*e5 )$ ) a /rea&h "+ -""# +a)$h a!# *",a*$, $" h)(r)!&)(a* +"r a! a-e!$5 wh)*e $he a-e!&, e%)$5 " $" #ea* w)$h $he'/0e&$ 6a$$er $here"+5 "r w)$h )!+"r6a$)"! a&2')re# #'r)!- $he&"'re "+ $he a-e!&,5 a $" 6a=e a (r"$ "'$ "+ )$ +"r h)6e*+ )!e%&e "+ h) *aw+'* &"6(e!a$)"! a!# )+ he #"e " he 6a, /e

he*# a a $r'$ee and may be compelled to account to his principalfor all prots, advantaes, rihts, or privilees ac!uired, by him insuch dealins, "hether in performance or in violation of his duties,and be re!uired to transfer them to his principal upon beinreimbursed for his e#penditures for the same, unless the principalhas consented to or ratied the transaction $no"in that benet or prot "ould accrue, or had accrued, to the aent, or unless "ithsuch $no"lede he has allo"ed the aent so as to chane hiscondition that he cannot be put in status !uo% The application of this rule is not a&ected by the fact that the principal did not su&er any in'ury by reason of the aent(s dealins, or that he in fact obtained better results) nor is it a&ected by the fact that there is a

usae or custom to the contrary, or that the aency is a ratuitousone.7 E6(ha) '((*)e#. 1

I! $he &ae a$ /ar5 #e+e!#a!$Ja((e**ee Gre-"r)" D"6)!-" a $he/r"=er5 re&e)8e# a -)+$ "r propina )! $he a6"'!$ "+ O!e Th"'a!#Pe" P15. +r"6 $he (r"(e&$)8e /',er O&ar #e Le"!5w)$h"'$ $he =!"w*e#-e a!# &"!e!$ "+ h) (r)!&)(a*5 here)!(e$)$)"!erJa((e**a!$ V)&e!$e D"6)!-". H) a&&e($a!&e "+ a)#'/$a!$)a* 6"!e$ar, -)+$ &"rr'($e# h) #'$, $" er8e $he )!$ere$

"!*, "+ h) (r)!&)(a* a!# '!#er6)!e# h) *",a*$, $" h) (r)!&)(a*5 wh"-a8e h)6 a (ar$)a* a#8a!&e "+ Three H'!#re# Pe" P9. "!h) &"66))"!. A a &"!e2'e!&e5 )!$ea# "+ e%er$)!- h) /e$ $"(er'a#e h) (r"(e&$)8e /',er $" ('r&hae $he (r"(er$, "! $he6"$ a#8a!$a-e"' $er6 #e)re# /, h) (r)!&)(a*5 $he /r"=er5here)! #e+e!#a!$Ja((e**ee Gre-"r)" D"6)!-"5 '&&ee#e# )!(er'a#)!- h) (r)!&)(a* $" a&&e($ $he &"'!$erJ"?er "+ $he(r"(e&$)8e /',er $" ('r&hae $he (r"(er$, a$ P1.3 (er 2'are6e$er "r O!e H'!#re# N)!e Th"'a!# Pe" P15. )! r"'!#-'re +"r $he *"$ "+ 5: 2'are 6e$er5 wh)&h ) 8er, 6'&h *"wer$ha! $he (r)&e "+ P3. (er 2'are 6e$er "r O!e H'!#re# Se8e!$,JS)% Th"'a!# N)!e H'!#re# F)+$,JF"'r Pe" P15>:. +"r a)#

*"$ "r)-)!a**, "?ere# /, h) (r)!&)(a*. The #'$, e6/"#)e# )! Ar$)&*e 11 "+ $he New C)8)* C"#e w)** !"$a((*, )+ $he a-e!$ "r /r"=er a&$e# "!*, a a 6)##*e6a! w)$h $he$a= "+ 6ere*, /r)!-)!- $"-e$her $he 8e!#"r a!# 8e!#ee5 wh"$he6e*8e $herea+$er w)** !e-"$)a$e "! $he $er6 a!# &"!#)$)"! "+ $he $ra!a&$)"!. Ne)$her w"'*# $he r'*e a((*, )+ $he a-e!$ "r /r"=erha# )!+"r6e# $he (r)!&)(a* "+ $he -)+$ "r /"!' "r (r"$ he re&e)8e#+r"6 $he ('r&haer a!# h) (r)!&)(a* #)# !"$ "/0e&$ $here$" 11Here)! #e+e!#a!$ a((e**ee Gre-"r)" D"6)!-" wa !"$ 6ere*, a6)##*e6a! "+ $he (e$)$)"!erJa((e**a!$ V)&e!$e D"6)!-" a!# $he/',er O&ar #e Le"!. He wa $he /r"=er a!# a-e!$ "+ a)#(e$)$)"!erJa((e**a!$ "!*,. A!# $here)! (e$)$)"!erJa((e**a!$ wa !"$

aware "+ $he -)+$ "+ O!e Th"'a!# Pe" P15. re&e)8e# /,Gre-"r)" D"6)!-" +r"6 $he (r"(e&$)8e /',er; 6'&h *e #)# he&"!e!$ $" h) a-e!$M a&&e($)!- '&h a -)+$. The +a&$ $ha$ $he /',er a((ear)!- )! $he #ee# "+ a*e ) A6(ar"D)a5 $he w)+e "+ O&ar #e Le"!5 #"e !"$ 6a$er)a**, a*$er $he)$'a$)"!; /e&a'e $he $ra!a&$)"!5 $" /e 8a*)#5 6'$ !e&ear)*, /ew)$h $he &"!e!$ "+ $he h'/a!# O&ar #e Le"!5 wh" ) $hea#6)!)$ra$"r "+ $he)r &"!0'-a* ae$ )!&*'#)!- $he)r h"'e a!# *"$a$ N". : De!8er S$ree$5 C'/a"5 Q'e"! C)$,5 wh)&h were -)8e! a(ar$ "+ a!# &"!$)$'$e# $he #"w! (a,6e!$ "!5 $he ('r&hae (r)&e "+ here)! (e$)$)"!erJa((e**a!$M *"$ N". 9 "+ P)e#a# E$a$e. He!&e5/"$h )! *aw a!# )! +a&$5 )$ wa $)** O&ar #e Le"! wh" wa $he

/',er.

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17/71

A a !e&ear, &"!e2'e!&e "+ '&h /rea&h "+ $r'$5 #e+e!#a!$Ja((e**ee Gre-"r)" D"6)!-" 6'$ +"r+e)$ h) r)-h$ $" $he &"66))"!a!# 6'$ re$'r! $he (ar$ "+ $he &"66))"! he re&e)8e# +r"6 h)(r)!&)(a*. Te"*" P'r))6a5 $he '/Ja-e!$ "+ Gre-"r)" D"6)!-"5 &a! "!*,re&"8er +r"6 Gre-"r)" D"6)!-" h) "!eJha*+ hare "+ wha$e8era6"'!$ Gre-"r)" D"6)!-" re&e)8e# /, 8)r$'e "+ $he $ra!a&$)"! a

h) '/Ja-e!&, &"!$ra&$ wa w)$h Gre-"r)" D"6)!-" a*"!e a!# !"$w)$h V)&e!$e D"6)!-"5 wh" wa !"$ e8e! aware "+ '&h '/Ja-e!&,. S)!&e Gre-"r)" D"6)!-" re&e)8e# +r"6 V)&e!$e D"6)!-"a!# O&ar #e Le"! re(e&$)8e*, $he a6"'!$ "+ Three H'!#re#Pe" P9. a!# O!e Th"'a!# Pe" P15. "r a $"$a* "+ O!e Th"'a!# Three H'!#re# Pe" P159.5 "!eJha*+ "+ $hea6e5 wh)&h ) S)% H'!#re# F)+$, Pe" P>.5 h"'*# /e (a)# /,Gre-"r)" D"6)!-" $" Te"*" P'r))6a.Be&a'e Gre-"r)" D"6)!-"M &*ear*, '!+"'!#e# &"6(*a)!$ &a'e#V)&e!$e D"6)!-" 6e!$a* a!-')h a!# er)"' a!%)e$, a we** aw"'!#e# +ee*)!-5 (e$)$)"!erJa((e**a!$ V)&e!$e D"6)!-" h"'*# /eawar#e# 6"ra* #a6a-e )! $he rea"!a/*e a6"'!$ "+ O!e

Th"'a!# Pe" P15. a!# a$$"r!e,M +ee )! $he rea"!a/*ea6"'!$ "+ O!e Th"'a!# Pe" P15.5 &"!)#er)!- $ha$ $h)&ae ha /ee! (e!#)!- +"r $he *a$ +$ee! 1> ,ear +r"6 )$ *)!-"! O&$"/er 95 1>.WHEREFORE5 $he 0'#-6e!$ ) here/, re!#ere#5 re8er)!- $he#e&))"! "+ $he C"'r$ "+ A((ea* a!# #)re&$)!- $he #e+e!#a!$Ja((e**ee Gre-"r)" D"6)!-" 1 $" (a, $" $he he)r "+ V)&e!$eD"6)!-" $he '6 "+ O!e Th"'a!# Pe" P15. a 6"ra*#a6a-e a!# O!e Th"'a!# Pe" P15. a a$$"r!e,M +ee;3 $" (a, Te"*" P'r))6a $he '6 "+ S)% H'!#re# F)+$, Pe"P>.; a!# 9 $" (a, $he &"$.

SECOND DIVISION[G.R. Nos. L33!19 +&' L33!97. Oto(#% 23, 19!2.]NATIONAL O:ER CORORATION, p'ainti+&appe''ant , vs.

NATIONAL -ERCANDISING CORORATION +&' DO-ESTICINS"RANCE CO-AN OF TE ILIINES, deendants&

appe''ants.Te So'i-itor Genera' o% $+*&t*;+$$#+&t.

Sy-ip, Sa'aar, L!na Mana'o ) Fe'i-iano o% '##&'+&ts+$$#+&ts.SNOSIS

P*a)!$)?Ja((e**a!$ Na$)"!a* P"wer C"r("ra$)"! NPC a!# #e+e!#a!$Ja((e**a!$ Na$)"!a* 4er&ha!#))!- C"r("ra$)"! NA4ERCO5 $he

Ph)*)(()!e re(ree!$a$)8e "+ New Y"r=J/ae# I!$er!a$)"!a*C"66"#)$)e C"r("ra$)"!5 e%e&'$e# a &"!$ra&$ "+ a*e "+ '*+'r w)$h

a $)('*a$)"! +"r *)2')#a$e# #a6a-e )! &ae "+ /rea&h.De+e!#a!$Ja((e**a!$ D"6e$)& I!'ra!&e C"6(a!, e%e&'$e# a(er+"r6a!&e /"!# )! +a8"r "+ NPC $" -'ara!$ee $he e**erM"/*)-a$)"!. I! e!$er)!- )!$" $he &"!$ra&$5 Na6er&"5 h"we8er5 #)# !"$#)&*"e $" NPC $ha$ Na6er&"M (r)!&)(a*5 )! a &a/*e# )!$r'&$)"!5$a$e# $ha$ $he a*e wa '/0e&$ $" a8a)*a/)*)$, "+ a $ea6er5 a!#&"!$rar, $" )$ (r)!&)(a*M )!$r'&$)"!5 Na6er&" a-ree# $ha$ !"!J

a8a)*a/)*)$, "+ a $ea6er wa !"$ a 0'$)&a$)"! +"r !"!J(a,6e!$ "+ *)2')#a$e# #a6a-e. The New Y"r= '((*)er wa !"$ a/*e $" #e*)8er$he '*+'r #'e $" )$ )!a/)*)$, $" e&'re h)(()!- (a&e.C"!e2'e!$*,5 $he G"8er!6e!$ C"r("ra$e C"'!e* re&)!#e# $he&"!$ra&$ "+ a*e #'e $" $he '((*)erM !"!J(er+"r6a!&e "+ )$"/*)-a$)"!5 a!# #e6a!#e# (a,6e!$ "+ *)2')#a$e# #a6a-e +r"6/"$h Na6er&" a!# $he 're$,. Therea+$er5 NPC 'e# +"r re&"8er, "+ $he $)('*a$e# *)2')#a$e# #a6a-e. A+$er $r)a*5 $he C"'r$ "+ F)r$I!$a!&e re!#ere# 0'#-6e!$ "r#er)!- #e+e!#a!$Ja((e**a!$ $" (a,"*)#ar)$, $" $he NPC re#'&e# *)2')#a$e# #a6a-e w)$h )!$ere$. The S'(re6e C"'r$ he*# $ha$ Na6er&" ) *)a/*e +'r #a6a-e/e&a'e '!#er Ar$)&*e 1 "+ $he C)8)* C"#e $he a-e!$ wh"

e%&ee# $he *)6)$ "+ h) a'$h"r)$, w)$h"'$ -)8)!- $he (ar$, w)$hwh"6 he &"!$ra&$ '&)e!$ !"$)&e "+ h) ("wer ) (er"!a**,*)a/*e $" '&h (ar$,. The C"'r$5 h"we8er5 +'r$her re#'&e# $he"*)#ar, *)a/)*)$, "+ #e+e!#a!$Ja((e**a!$ +"r *)2')#a$e# #a6a-e.SYLLABUS1. CIVIL LAW; OBLIGATIONS AND CONTRACTS; AGENCY; AN AGENTWHO E


18/71

) "'-h$ $" /e he*# *)a/*e "! $he &"!$ra&$ e!$ere# )!$" /, $hea-e!$. The a)# r'*e ) !"$ a((*)&a/*e )! $he )!$a!$ &ae )!&e )$ )$he a-e!$5 !"$ $he (r)!&)(a*5 $ha$ ) "'-h$ $" /e he*# *)a/*e "! $he&"!$ra&$ "+ a*e wh)&h wa e%(re*, re('#)a$e# /, $he (r)!&)(a*/e&a'e $he a-e!$ $""= &ha!&e5 )$ e%&ee#e# )$ a'$h"r)$, a!#5 )!e?e&$. )$ a&$e# )! )$ "w! !a6e.:. ID.; ID.; ID.; THE CONTRACT ENTERED INTO BY AN AGENT WHO

ACTED BEYOND HIS POWERS IS UNENFORCEABLE ONLY AS AGAINST THE PRINCIPAL BUT NOT AGAINST THE AGENT AND ITS SURETY. —Ar$)&*e 1:9 "+ $he C)8)* C"#e wh)&h (r"8)#e $ha$ a &"!$ra&$e!$ere# )!$" )! $he !a6e "+ a!"$her (er"! /, "!e wh" ha a&$e#/e,"!# h) ("wer ) '!e!+"r&ea/*e5 re+er $" $he '!e!+"r&ea/)*)$,"+ $he &"!$ra&$ a-a)!$ $he (r)!&)(a*. I! $he )!$a!$ &ae5 $he&"!$ra&$ &"!$a)!)!- $he $)('*a$)"! +"r *)2')#a$e# #a6a-e ) !"$/e)!- e!+"r&e# a-a)!$ )$ (r)!&)(a* /'$ a-a)!$ $he a-e!$ a!# )$'re$,. I$ /e)!- e!+"r&e# a-a)!$ $he a-e!$ /e&a'e Ar$)&*e 1)6(*)e $ha$ $he a-e!$ wh" a&$ )! e%&e "+ h) a'$h"r)$, )(er"!a**, *)a/*e $" $he (ar$, w)$h wh"6 he &"!$ra&$e#. A!# $ha$r'*e ) &"6(*)6e!$e# /, Ar$)&*e 1 "+ $he C)8)* C"#e wh)&h

(r"8)#e $ha$ 7)+ $he a-e!$ &"!$ra&$5 )! $he !a6e "+ $he (r)!&)(a*5e%&ee#)!- $he &"(e "+ h) a'$h"r)$,5 a!# $he (r)!&)(a* #"e !"$ra$)+, $he &"!$ra&$5 )$ ha** /e 8")# )+ $he (ar$, w)$h wh"6 $he a-e!$&"!$ra&$e# ) aware "+ $he *)6)$ "+ $he ("wer -ra!$e# /, $he(r)!&)(a*.7 Na6er&" !e8er #)&*"e# $" $he NPC $he &a/*e# "rwr)$$e! )!$r'&$)"! "+ )$ (r)!&)(a*. F"r $ha$ rea"! a!# /e&a'eNa6er&" e%&ee#e# $he *)6)$ "+ )$ a'$h"r)$,5 )$ 8)r$'a**, a&$e# )! )$"w! !a6e a!# !"$ a a-e!$ a!# )$ )5 $here+"re5 /"'!# /, $he&"!$ra&$ "+ a*e wh)&h5 h"we8er5 )$ !"$ e!+"r&ea/*e a-a)!$ )$(r)!&)(a*. I+5 a &"!$e6(*a$e# )! Ar$)&*e 1 a!# 15 Na6er&" )/"'!# '!#er $he &"!$ra&$ "+ a*e5 $he! )$ +"**"w $ha$ )$ ) /"'!# /,$he $)('*a$)"! +"r *)2')#a$e# #a6a-e )! $ha$ &"!$ra&$.

>. ID.; ID.; ID.; THE LIABILITY OF AN AGENT WHO E3>.. CIVIL LAW; DA4AGES; I4POSITION OF INTEREST THEREON NOTWARRANTED WHERE THE DISPOSITION OF THE CASE HAS BEENDELAYED DUE TO NO FAULT OF DEFENDANTS. — W)$h re(e&$ $" $he)6(")$)"! "+ $he *e-a* ra$e "+ )!$ere$ "! $he #a6a-e +r"6 $he*)!- "+ $he &"6(*a)!$ )! 1>5 "r a 2'ar$er "+ a

partnership, agency and trust cases

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