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[No. 6305. September 26, 1911.]COMPAIA GENERA !E "A#ACOS !E $IIPINAS, p%&'(t')) &(* &ppe%%ee, +. ROMANA GA-ON &(* /-AN !. POMAR,*e)e(*&(t. /-AN !. POMAR, ree'+er &(* &ppe%%&(t.

1.RECEIVERS; POWERS, DUTIES, AND RESPONSIBILITIES.A receiver is genera! "e#ine" $% &e an in"i##eren$ 'ers%n&e$(een $)e 'ar$ies i$igan$, a''%in$e" &! $)e c%*r$ an" %n &e)a# %# a $)e 'ar$ies, an" n%$ %# $)e 'ain$i## %r "e#en"an$ %n!, $%receive an" )%" $)e $)ing %r 'r%'er$! in i$iga$i%n, 'en"ing $)e s*i$, $% receive $)e ren$s, iss*es, %r 'r%#i$s %# $)e an" %r $)ing in+*es$i%n, $% )%" '%ssessi%n an" c%n$r% %# $)e 'r%'er$! ()ic) is $)e s*&ec$-a$$er %# $)e i$iga$i%n an" $% "is'%se %# i$ in s*c)anner as a! &e "irec$e" &! $)e c%*r$. /e is $)e ar an" )an" %# $)e c%*r$, a00

00P/ILIPPINE REPORTS ANNOTATEDC%'a23a 4enera "e Ta&ac%s vs. 4a*5%n an" P%ar.'ar$ %# $)e ac)iner! %# $)e c%*r$, &! ()ic) $)e rig)$s %# $)e 'ar$ies are 'r%$ec$e". /e is re+*ire" n%$ %n! $% 'reserve $)e 'r%'er$!,&*$ $% 'r%$ec$ $)e rig)$s %# a $)e 'ar$ies in$eres$e".0.ID.; LI6ITED AUT/ORIT7 TO INCUR E8PENSE WIT/OUT E8PRESS PER6ISSION O9 T/E COURT.4enera! a receiver)as n% a*$)%ri$! $% inc*r an! e:'ense in $)e a"inis$ra$i%n %# )is receivers)i', (i$)%*$ e:'ress 'erissi%n %# $)e c%*r$, e:ce'$ i$&e a&s%*$e! necessar! $% 'reserve $)e 'r%'er$!, an" $)en %n! ()en, *n"er s'ecia circ*s$ances, )e can n%$ sec*re s*c)a*$)%ri$! #r% $)e c%*r$. /e s)%*" a"inis$er $)e es$a$e as ec%n%ica! as '%ssi&e, $% $)e en" $)a$ $)e in$eres$s %# a $)e 'ar$iess)a &e c%nserve"..ID.; CO6PENSATION.T)e a%*n$ %# c%'ensa$i%n %# a receiver is #i:e" &! $)e s%*n" "iscre$i%n %# $)e c%*r$. T)e c%*r$, in#i:ing $)e c%'ensa$i%n %# $)e receiver, s)%*" $aI. T)e c%*r$ erre" in re"*cing $% PG,.@F $)e P00,-@.F s'en$ &! $)e receiver #%r c*$$ing, )a*ing, an" an*#ac$*re %#G,??.G 'ic*s %# s*gar, #%r 'ac

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III. T)e c%*r$ erre" in n%$ a''r%ving $)e "is&*rseen$ a"e &! $)e receiver %# $)e P,??1.@ "eivere" $% $)e a'arcer%s as $)eirs)are %# $)e cr%'.IV. T)e c%*r$ erre" in re"*cing $% P1,??? $)e P,G?.GF ()ic) $)e receiver caie" as c%'ensa$i%n # %r )is services.V. T)e c%*r$ erre" in )%"ing $)a$ $)e %r"er a''%in$ing $)e receiver "%es n%$ e:$en" )is '%(ers &e!%n" $)%se 'rescri&e" insec$i%n 1F %# Ac$ N%. 1@?.Wi$) re#erence $% $)e #irs$ assignen$ %# err%r, i$ (i &e n%$e" $)a$ $)e receiver 'resen$e" an acc%*n$ #%r c*$$ing, grin"ing, e$c., %#$)e s*gar cane *'%n $)e )acien"a, %ver ()ic) )e )a" c%n$r% as receiver, a%*n$ing $% P00,@.F. =*"ge 6cCa&e re#*se" $%a%( $)a$ a%*n$ #%r $)e c*$$ing an" grin"ing, e$c., %# sai" s*gar cane, *'%n $)e gr%*n" $)a$ i$ (as an *nreas%na&e c)arge. T)e'ar$ies in $)e %(er c%*r$ agree" $% $)e a''%in$en$ %# $)ree c%issi%ners # %r $)e '*r'%se %# ascer$aining $)e reas%na&e c%s$%# c*$$ing, grin"ing, e$c., %# $)e s*gar cane *'%n $)e sai" )acien"a. T)e c%issi%ners (ere "*! a''%in$e", $)e 'ain$i## seec$ing%ne, $)e "e#en"an$ an%$)er an" $)e c%*r$ seec$ing $)e $)ir". In "*e $ie an" a#$er "*e "ei&era$i%n, $)e c%issi%ners re'%r$e"

$)a$ $)e reas%na&e c%s$ # %r c*$$ing, Hgrin"ing, e$c., %# $)e sai" s*gar cane 'er 'ic% (as P1.?F. T)ere (ere G,??.G 'ic%s %# s*garcane, ()ic) cac*a$e" a$ $)e0

VOL. 0?, SEPTE6BER 0, 1@11.0C%'a23a 4enera "e Ta&ac%s vs. 4a*5%n an" P%ar.ra$e %# P1.?F 'er 'ic% #%r c*$$ing, grin"ing, e$c., (%*" a%*n$ $% PG,.@F, ()ic) a%*n$ $)e %(er c%*r$ a%(e" $)e receiver.T)e c%issi%ners a''%in$e" &! $)e %(er c%*r$ (ere en ()% )a" )a" e:'erience in $)e c*$$ing an" grin"ing %# s*gar cane. I$(as $)e "*$! %# $)e receiver $% )arves$ $)e s*gar cane a$ $)e eas$ '%ssi&e c%s$ $% $)e %(ners %# $)e cr%'. T)ere is *c) 'r%%# in$)e rec%r" $% in"ica$e $)a$ $)e receiver "i" n%$ )arves$ $)e cr%' %# s*gar cane as e:'e"i$i%*s! as )e s)%*" )ave "%ne. T)ere isn% 'r%%# in $)e rec%r" ()ic) s)%(s $)a$ $)e a%*n$ es$ia$e" &! $)e sai" c%issi%ners # %r $)e c*$$ing, grin"ing, e$c., %# $)es*gar cane in +*es$i%n, (as n%$ a reas%na&e a%*n$ #%r $)a$ e:'ense. We #in" n%$)ing in $)e rec%r" ()ic) *s$i#ies *s in%"i#!ing $)e "ecisi%n %# $)e %(er c%*r$ (i$) re#erence $% $)is #irs$ assignen$ %# err%r.Wi$) re#erence $% $)e sec%n" assignen$ %# err%r, i$ a''ears $)a$ $)e receiver a$$e'$e" $% c)arge P1F.G, as in$eres$ %n %ne!&%rr%(e" &! )i "*ring )is a"inis$ra$i%n as receiver. T)ere is n% 'r%%# in $)e rec%r" $)a$ $)e receiver (as a*$)%ri5e" $% &%rr%(%ne! #%r $)e '*r'%se %# carr!ing %n )is (%r< as receiver %# sai" )acien"a; nei$)er is $)ere an! 'r%%# in $)e rec%r" ()ic) s)%(s$)a$ i$ (as necessar! #%r )i $% &%rr%( %ne! $% 'r%'er! c%nserve $)e in$eres$s %# $)e %(ners an" cre"i$%rs in$eres$e" in $)ea"inis$ra$i%n %# $)e )acien"a. T)e %(er c%*r$ c%rrec$! sai", a receiver )as n% a*$)%ri$! $% &%rr%( %ne! *ness $)e sae ise:'ress! given &! $)e c%*r$. We (%*" &e incine", )%(ever, $% a%( $)is a%*n$ P1F.G )a" $)e necessi$! &een #*!"e%ns$ra$e" #%r &%rr%(ing $)e %ne!. In $)e a&sence %# a*$)%ri$! e:'ress! given an" es'ecia! in $)e a&sence %# 'r%%# %# $)ea&s%*$e necessi$! #%r inc*rring $)is i$e%# e:'ense, (e re#*se $% %"i#! $)e c%nc*si%ns %# $)e %(er c%*r$ (i$) res'ec$ $% $)is i$e.Wi$) re#erence $% $)e $)ir" assignen$ %# err%r a&%ve n%$e", $)e receiver inc*"e" in )is acc%*n$ $)e i$e %# P,??1.@, &eing $)ea%*n$, acc%r"ing $%H $)is s$a$een$, %# %ne! an" e##ec$s "eivere" $% %s a'arcer%s "e a )acien"a "*ring )is a"inis$ra$i%n. I$is a (e

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%ver%% T)e receiver s)a )ave, *n"er $)e c%n$r% %# $)e c%*r$ in ()ic) $)e ac$i%n is'en"ing, '%(er, e$c. T)e *"ge %# $)e %(er c%*r$ in )is "ecisi%n g%es in$% "e$ai a$ eng$) an" ci$es a*$)%ri$ies e:$ensive!, #%r $)e'*r'%se %# s)%(ing $)e genera "*$ies, '%(ers an" .res'%nsi&ii$ies %# receivers, evi"en$! #%r $)e '*r'%se %# ins$r*c$ing receiversin )is "is$ric$. T)e receiver is genera! "e#ine" $% &e an in"i##eren$ 'ers%n &e$(een $)e 'ar$ies i$igan$, a''%in$e" &! $)e c%*r$ an"%n &e)a# %# a $)e 'ar$ies,0G

0GP/ILIPPINE REPORTS ANNOTATEDC%'a23a 4enera "e Ta&ac%s vs. 4a*5%n an" P%ar.an" n%$ %# $)e 'ain$i## %r "e#en"an$ %n!, $% receive an" )%" $)e $)ing %r 'r%'er$! in i$iga$i%n, 'en"ing $)e s*i$ B%%$) vs. Car

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[No. 2529. No+ember 2, 1926]"E #EGIAN CA"OIC MISSIONARIES, INC., p%&'(t')) &(* &ppe%%ee, +. MAGAANES PRESS, INC., E" A.,*e)e(*&(t. /OSE MARIA MEMI/E, &ppe%%&(t.

1.C/ATTEL 6ORT4A4E; DEPOSIT O9 PROPERT7.T)e $ria c%*r$ "i" n%$ c%i$ an err%r in a*$)%ri5ing $)e 'ain$i##c%r'%ra$i%n $% $a

T)is is an a''ea $a9%r a $)e #%reg%ing, $)e c%*r$ is %# $)e %'ini%n $)a$ $)e 'ain$i## )as a rig)$ $% $)e reie# 'ra!e" #%r in i$s c%'ain$. W)ere#%re,

*"gen$ is ren"ere" "ecaring $)a$ E:)i&i$s C an" D, $)a$ is, $)e %r$gage "ee"s in +*es$i%n in $)is 'r%cee"ing, in s% #ar as $)e!'re*"ice $)e rig)$s %# $)e 'ain$i##, are n* an" v%i"; $)a$ $)e 'reiinar! in*nc$i%n iss*e" in $)is case agains$ $)e "e#en"an$ =%se6a. 6eie is #ina an" a&s%*$e; an" $)a$ $)e 'ain$i## rec%ver $)e a%*n$ %# $)e #ire ins*rance '%icies %# $)e "e#en"an$H6agaanes Press, Inc.,H ()ic), %r $)e re'resen$a$ives %# ()ic), is )ere&! %r"ere" $% en"%rse sai" ins*rance '%icies $% $)e'ain$i##, (i$) $)e c%s$s %# $)e 'r%cee"ing agains$ $)e "e#en"an$s, (i$) $)e e:ce'$i%n %# =. P. /ei&r%nn C%., Inc. I$ is s% %r"ere".In s*''%r$ %# )is a''ea, $)e a''ean$ assigns $)e #%%(ing s*''%se" err%rs as c%i$$e" &! $)e %(er c%*r$ in i$s *"gen$, $%(i$> 1 T)e c%*r$ erre" in %verr*ing $)e "e*rrer #ie" &! $)is "e#en"an$ $% $)e c%'ain$ in $)is ac$i%n; 0 $)e $ria c%*r$ erre" ingiving $)e 'ain$i## c%r'%ra$i%n '%ssessi%n %# $)e 'r%'er$! %r$gage" $% $)is a''ean$ (i$)%*$ #%%(ing $)e necessar! 'r%cee"ings

%r c%'!ing (i$) $)e 'r%visi%ns %# $)e a(; $)e $ria c%*r$ erre" in iss*ing $)e (ri$ %# 'reiinar! in*nc$i%n agains$ $)e a''ean$an" E. E. Eser, res$raining $)e #%rer #r% receiving #r% $)e a$$er, %r $)e a$$er #r% "eivering $% $)e #%rer, $)e a%*n$ %# $)eins*rance '%icies c%vering $)e 'r%'er$! %r$gage" $% $)e a''ean$, ()ic) (as "aage" &! $)e #ire $)a$ %cc*rre" in $)ees$a&is)en$ %# $)e 6agaanes Press, Inc.; $)e $ria@

VOL. @, NOVE6BER 0, 1@0@Begian Ca$)%ic 6issi%naries vs. 6agaanes Pressc%*r$ erre" in giving $% $)e *nnecessar! in$erven$i%n %# $)e 6agaanes Press, Inc., in $)e e:ec*$i%n %# $)e "ee" E:)i&i$ C anin$er're$a$i%n ()ic) is nei$)er &ase" *'%n a( n%r *'%n $)e c%n$rac$; $)e $ria c%*r$ erre" in %r"ering $)e s*s'ensi%n %# $)e#%rec%s*re %# $)e a''ean$Hs %r$gage %n $)e 'r%'er$! %# $)e 6agaanes Press, Inc.; $)e $ria c%*r$ erre", *n"er $)e #ac$s'r%ven in $)is case, in a''!ing ar$ice 10@F %# $)e Civi C%"e; F $)e $ria c%*r$ erre" in #in"ing in i$s "ecisi%n $)a$ $)e "e#en"an$

=%se 6a. 6eie s)%*" n%$ )ave e:ec*$e" $)e "%c*en$s E:)i&i$s C an" D (i$)%*$ $a

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$)e 'a!ee an a""i$i%na s* e+*a $% 1 'er cen$ %# $)e $%$a &aance #%r a$$%rne!Hs #ee an" e:'enses %# c%ec$i%n, #%r#ei$ing arig)$ %# e:e'$i%n.T% sec*re $)e 'a!en$ %# sai" 'r%iss%r! n%$es ()ic) a%*n$e" $% a $%$a %# P1,1GG.@, /. Cae2a, as genera anager %# $)e6agaanes Press, e:ec*$e" a c)a$$e %r$gage %n a $)e 'rin$ing ac)iner! an" i$s access%ries, &e%nging $% $)e sai"6agaanes Press, in #av%r %# =. P. /ei&r%nn M C%,, Inc.On =*ne 1@, 1@00, $)e 6agaanes Press C%., Inc., s*ccess%r $% $)e 6agaanes Press, (i$) a $)e a$$erHs rig)$s an" %&iga$i%ns,$)r%*g) i$s "*! a*$)%ri5e" 'resi"en$, E. 9. Ceen$e, e:ec*$e" a c)a$$e %r$gage %n $)e sae 'rin$ing ac)iner! an" i$saccess%ries in #av%r %# $)e Begian Ca$)%ic 6issi%naries C%., Inc., ()ic) $)e 6agaanes Press )a" %r$gage" $% =. P. /ei&r%nnM C%., Inc., $% sec*re $)e 'a!en$ %# a %an %# P?,??, (i$) in$eres$ a$ 10 'er cen$ 'er ann*, ()ic) $)e sai" 6agaanes PressM C%., Inc., )a" %&$aine" #r% $)e Begian Ca$)%ic 6issi%naries C%.,1

VOL. @, NOVE6BER 0, 1@01Begian Ca$)%ic 6issi%naries vs. 6agaanes PressInc., $)e "*ra$i%n %# $)e %r$gage %an &eing %ne !ear #r% $)e e:ec*$i%n %# $)e %r$gage "ee".In Dece&er, 1@00 $)e a''ean$ =%se 6a. 6eie a"e a %an in $)e s* %# P0,??? $% E. 9. Ceen$e ()ic) (as 'ai" %nacc%*n$ %# $)e in"e&$e"ness %# $)e 6agaanes Press $% =. P. /ei&r%nn M C%., Inc., $%ge$)er (i$) $)e s* %# P1,1 ()ic) A. 9.6en"%5a %(e" sai" E. 9. Ceen$e.On $)e %ccasi%n %# $)e iss*ance %# $)e (ri$ %# a$$ac)en$ in civi ca*se N%. 0G1G %# $)e C%*r$ %# 9irs$ Ins$ance %# 6ania, en$i$e"=%se 6a. Cavanna vs. T)e 6agaanes Press C%., Inc., $)e "e#en"an$ =%se 6a. 6eie, %n 9e&r*ar! 01, 1@0, #ie" anin$erven$i%n in sai" case.

A $)e 'r%iss%r! n%$es e:ec*$e" &! $)e 6agaanes Press in #av%r %# =. P. /ei&r%nn M C%., Inc., )aving &een %ver"*e #%r n%n-'a!en$ %# $)e ins$aen$s, as (e as $)e res'ec$ive c)a$$e %r$gage, $)e sai" =. P. /ei&r%nn M C%., Inc., $rans#erre" a i$s%r$gage cre"i$ agains$ $)e 6agaanes Press $% =%se 6a. 6eie in c%nsi"era$i%n %# $)e s* %# PG,0G?.@?, $)e &aance %# sai"%r$gage cre"i$.On 6arc) 1, 1@0, Enri+*e Ceen$e, as anager %# $)e 6agaanes Press C%., Inc., e:ec*$e" a "ee" in #av%r %# =%se 6a.6eie &! vir$*e %# ()ic) $)e c)a$$e %r$gage ()ic) (as given &! $)e 6agaanes Press in #av%r %# =. P. /ei&r%nn M C%., Inc.,an" $rans#erre" &! $)e a$$er $% =%se 6a. 6eie, (as a"e $% c%ver an a""i$i%na %an %# P,G@.F@, ()ic) inc*"e" $)e s* %#P0,??? ()ic) sai" =%se 6a. 6eie )a" a"vance" sai" Enri+*e Ceen$e in Dece&er, 1@00.On A'ri 01, 1@0, a #ire %cc*rre" in $)e &*i"ing ()ere $)e 'rin$ing ac)iner!, i$s access%ries an" %$)er 'ers%na 'r%'er$! %# $)e6agaanes Press C%., Inc., (ere %ca$e" an" ()ic) (ere c%vere" &! sai" c)a$$e %r$gages. Sai" 'r%'er$! (as ins*re", an" $)eins*rance '%icies c%vering i$ (ere en"%rse" $% =. P. /ei&r%nn M C%., Inc., *'%n $)e e:ec*$i%n %# $)e c)a$$e %r$gage $)ere%n in#av%r %# $)e a$$er. W)en =. P. /ei&r%nnM C%., Inc., $rans#erre"0

0

P/ILIPPINE REPORTS ANNOTATEDBegian Ca$)%ic 6issi%naries vs. 6agaanes Pressi$s %r$gage cre"i$ $% =%se 6a. 6eie i$, in $*rn, en"%rse" sai" ins*rance '%icies $% )i. T)e ins*rance c%'anies (ere"is'%se" $% 'a! $)e res'ec$ive ins*rance '%icies, ()ic) a%*n$e" $% PF,G., &*$ "*e $% $)e iss*ance %# $)e a&%ve-en$i%ne"(ri$ %# 'reiinar! in*nc$i%n, 'a!en$ c%*" n%$ &e a"e.D*e $% $)e #iing %# $)e c%'ain$ in $)e 'resen$ case %n 6a! @, 1@0, an" $)e iss*ance %# $)e (ri$ %# 'reiinar! in*nc$i%n %n 6a!1?$) %# $)e sae !ear, =%se 6a. 6eie (as *na&e $% c%ec$ $)e a%*n$ %# $)e ins*rance '%icies, an" ()en )e (as s*%ne"*n"er $)e c%'ain$ %n 6a! 1, 1@0, )e a"e "ean" %n $)e 6agaanes Press C%., Inc., #%r $)e 'a!en$ %# )is %r$gage cre"i$an" %n $)e sae "a$e $)e anager %# sai" c%r'%ra$i%n, E. 9. Ceen$e, 'eri$$e" $)e secre$ar! %# $)e sai" c%r'%ra$i%n $% 'ace $)e'r%'er$! c%vere" &! $)e %r$gage in$% $)e )an"s %# $)e sai" =%se 6a. 6eie in %r"er $)a$ $)e sae ig)$ &e s%", &*$ $)e saec%*" n%$ &e c%ns*a$e" "*e $% $)e iss*ance %# $)e sai" (ri$ %# 'reiinar! in*nc$i%n.T)e #irs$ +*es$i%n raise" &! $)e "e#en"an$ an" a''ean$ )as re#erence $% $)e %verr*ing %# $)e "e*rrer #ie" &! )i $% $)ec%'ain$.

One %# $)e gr%*n"s %# sai" "e*rrer (as $)a$ $)e c%'ain$ in $)is case "i" n%$ aege #ac$s s*##icien$ $% c%ns$i$*$e a ca*se %#ac$i%n agains$ $)e sai" "e# en"an$, in $)a$, n%$(i$)s$an"ing $)e #ac$ $)a$ $)e sai" c%'ain$ (as ins$i$*$e" $% ann* $)e "%c*en$ %#$rans#er %# $)e %r$gage cre"i$ E:)i&i$ C, i$ (as n%$ aege" in $)e sai" c%'ain$ $)a$ $)e "e#en"an$ =%se 6a. 6eie )a" an!in$en$i%n $% "e#ra*" $)e in$eres$s %# $)e 'ain$i## c%r'%ra$i%n, ()ic) (as a&s%*$e! i'%ssi&e "*e $% $)e na$*re %# $)e $ransac$i%nan" $)e 're#eren$ia c)arac$er %# $)e %r$gage cre"i$ %# =. P. /ei&r%nn M C%., Inc.

As $% $)is 'aragra') %# $)e c%'ain$, $)e 'ain$i## c%'an! )aving

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$)e %rigina cre"i$ &*$ as% $)e increase, $)e Begian Ca$)%ic 6issi%naries C%., Inc., #ie" a c%'ain$, (i$) a 'e$i$i%n #%r a (ri$ %#'reiinar! in*nc$i%n agains$ $)e s)eri##, in ()%se )an"s $)e #%re-

P/ILIPPINE REPORTS ANNOTATEDBegian Ca$)%ic 6issi%naries vs. 6agaanes Pressc%s*re %# $)e %r$gage (as 'ace". T)e (ri$ %# 'reiinar! in*nc$i%n )aving &een iss*e", *'%n $)e #iing %# a &%n" in $)e s* %#P1,???, an" $)ere &eing n% 'ers%n %re in$eres$e" in $)e c%nserva$i%n an" c*s$%"! %# $)e 'r%'er$! c%vere" &! $)e %r$gage$)an sai" 'ain$i## c%'an!, &eing $)e arges$ cre"i$%r, i$ a''ie" an" %&$aine" #r% $)e c%*r$ $)e '%ssessi%n %# $)e sae.C%n$rar! $% $)e c%n$en$i%n %# $)e a''ean$, $)is case is n%$ %ne %# re'evin &*$ si'! a 'r%cee"ing ins$i$*$e" &! $)e 'ain$i## #%r $)e

"e'%si$ %# $)e 'r%'er$! in i$iga$i%n, *'%n $)e # iing %# a &%n", sai" 'ain$i## ac$ing as a receiver &! a*$)%ri$! %# $)e c%*r$, &eing $)e'ers%n %s$ in$eres$e" in $)e c%nserva$i%n an" care %# $)e sae sec. 1F, Ac$ N%. 1@?; 11 C. =., F0.T)e %(er c%*r$, $)ere#%re, "i" n%$ err in a*$)%ri5ing $)e 'ain$i## c%'an! $% $a

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[No. 29295. Otober 22, 1924]/. M. PO PA-CO, p%&'(t')), +. !OORES SIGENA E" A., *e)e(*&(t. ISE 7 Co., '(ter+e(or &(* &ppe%%&(t.

1.S/ERI99; RECEIVER.A s)eri##, in a sense, is a *"icia %##icer %# a genera c)arac$er, ()% is n%$ a''%in$e" in an! 'ar$ic*ar*"icia case; $)e s)eri## is an %##icer ()% e:ercises %r a! e:ercise )is #*nc$i%ns (i$)in $)e ii$s %# )is *ris"ic$i%n. A receiver, %n$)e %$)er )an", is a s'ecia %##icer a''%in$e" in c%nnec$i%n (i$) an" in a 'ar$ic*ar case %r ac$i%n, an" ()%se "*$ies are ii$e" $%)is s')ere, %# ac$i%n an" "% n%$ e:$en" #*r$)er $)an $)e case in ()ic) )e is a''%in$e".0.ID. ; ID.W)ie $)e #*n"s in $)e )an"s %# a s)eri## a! &e (i$)in $)e reac) %# 'r%cesses c%ing #r% %$)er *"icia 'r%cee"ings,s*c) is n%$ $)e case (i$) res'ec$ $% $)%se *n"er $)e c*s$%"! %# a receiver. T)%se ()% )ave an! cai $% 'r%'er$! %r s*s in $)e'%ssessi%n %# a receiver, *s$ a''ear in $)e sae 'r%cee"ing in ()ic) sai" receiver "isc)arges )is "*$ies, an" $)ere, &! %$i%n%r 'e$i$i%n, aege an" 'r%ve $)eir cais.

APPEAL #r% an %r"er %# $)e C%*r$ %# 9irs$ Ins$ance %# I%i%. Saas, =.T)e #ac$s are s$a$e" in $)e %'ini%n %# $)e c%*r$.B%c

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[No. 8294. $ebr&r: 20, 1951]ERNES" #ERG, p%&'(t')) &(* &ppe%%&(t, +. ;AEN"IN "E-S, *e)e(*&(t &(* &ppe%%ee.

1.6ORATORIU6; APPOINT6ENT O9 RECEIVER DOES NOT 9ALL UNDER T/E 6ORATORIU6 LAW.W)ere $)e c%'ain$#%r $)e #%rec%s*re %# rea an" c)a$$e %r$gages as% 'ra!s #%r $)e a''%in$en$ %# a receiver, a %$i%n $% "isiss %n $)e gr%*n" %#$)e 6%ra$%ri* La( s)%*" n%$ &e s*s$aine". T)e aege" vi%a$i%ns %# $)e c%n"i$i%ns %# $)e %r$gage c%n$rac$, i# $r*e, a

T)is a''ea is #r% an %r"er %# $)e C%*r$ %# 9irs$ Ins$ance %# I%c%s S*r "isissing $)e a&%ve-en$i$e" ac$i%n &! reas%n %#E:ec*$ive Or"er N%. 0, as aen"e" &! E:ec*$ive Or"er N%. 0, %n %ra$%ri*.Ernes$ Berg &r%*g)$ $)e ac$i%n agains$ Vaen$in Te*s $% #%rec%se a rea es$a$e an" c)a$$e %r$gage e:ec*$e" in N%ve&er, 1@,$% sec*re si: 'r%iss%r! n%$es %# $)e aggrega$e va*e %# PG?,??? an" 'a!a&e %n "ean" $(% !ears a#$er "ecara$i%n %# aris$ice&e$(een $)e Uni$e" S$a$es an" =a'an. An aen"e" %r s*''een$ar! c%'ain$ (as a$er a"i$$e" agains$ $)e "e#en"an$Hs%&ec$i%n. T)e c%'ain$s reci$e" $)a$ &! s$i'*a$i%ns %# $)e 'ar$ies, $)e %r$gag%r )a" *n"er$a

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$)e "e#en"an$ $% arres$ $)e e:ec*$i%n s)%*" %ne #%r 'a!en$ %# %ne! &e iss*e". In $)a$ case $)e 'ain$i##, ()ic) )a" s%" $% $)e"e#en"an$ a 'iece %# an" %n ins$aen$ &asis, (as "ean"ing 'a!en$ %# $)e ins$aen$s s$i *n'ai", ins$aen$s ()ic) $)e"e#en"an$ caie" $% )ave #*! se$$e" (i$) $)e =a'anese aien 'r%'er$! c*s$%"ian %r, in "e#a*$, res$%ra$i%n %# $)e %(ners)i' an"'%ssessi%n %# $)e 'r%'er$!. In rev%

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G.R. No. 15504. $ebr&r: 13, 2004.G

VOL. , 9EBRUAR7 1, 0??GGVivares vs. Re!esW/ERE9ORE, 'reises c%nsi"ere", $)e Pe$i$i%n is )ere&! 4RANTED. T)e Res%*$i%n "a$e" 00 6a! 0??1 %# $)e Regi%na Tria

C%*r$ %# Caig*in, Branc) 0G in Civi Case N%. 1F is )ere&! reverse" an" se$ asi"e. T)e c%*r$-a''%in$e" receiver, L%'eSaan$in, is "isc)arge" *'%n $)e '%s$ing &! 'e$i$i%ner %# a c%*n$er&%n" in $)e a%*n$ %# P1??,???.??. T)e n%$ice %# is 'en"ens inTa: Decara$i%n 110,in s% #ar as i$ c%vers $)e 'r%'er$! %# Eena Unc)*an, is cancee". Le$ $)is case &e rean"e" $% $)e c%*r$ a +*% #%r #*r$)er'r%cee"ings.FIn reversing $)e $ria c%*r$, $)e CA reas%ne" $)a$ $)e c%*r$ a +*% #aie" $% %&serve $)e (e-se$$e" r*e $)a$ a%(s $)e gran$ %# $)e)ars) *"icia ree"! %# receivers)i' %n! in e:$ree cases ()en $)ere is an i'era$ive necessi$! #%r i$. T)e CA $)*s )e" $)a$ i$ is'r%'er $)a$ $)e a''%in$e" receiver &e "isc)arge" %n $)e #iing %# a c%*n$er&%n" '*rs*an$ $% Sec. , R*e @ %# $)e 1@@F Revise"R*es %n Civi Pr%ce"*re.6%re%ver, $)e CA ra$i%cina$e" $)a$ res'%n"en$ )as a"e+*a$e! "e%ns$ra$e" $)a$ $)e a''%in$en$ %# $)e receiver )as n% s*##icien$&asis, an" #*r$)er )e" $)a$ $)e rig)$s %# 'e$i$i%ners %ver $)e 'r%'er$ies in i$iga$i%n are "%*&! 'r%$ec$e" $)r%*g) $)e n%$ices %# is'en"ens ann%$a$e" %n $)e $i$es %# $)e s*&ec$ 'r%'er$ies. In #ine, $)e a''ea$e c%*r$ '%in$e" %*$ $)a$ $)e a''%in$en$ %# a receiveris a "eica$e %ne, re+*iring $)e e:ercise %# "iscre$i%n, an" n%$ an a&s%*$e rig)$ %# a 'ar$! &*$ s*&ec$ $% $)e a$$en"an$ #ac$s %# eac)

case. T)e CA #%*n" $)a$ $)e $ria c%*r$ a&*se" i$s "iscre$i%n in a''%in$ing $)e receiver an" in "en!ing $)e cancea$i%n %# $)e n%$ice%# is 'en"ens %n TD N%. 110, ins%#ar as i$ 'er$ains $% $)e '%r$i%n %(ne" &! Unc)*an.Aggrieve", 'e$i$i%ners in $*rn in$er'%se" a 6%$i%n #%r Rec%nsi"era$i%n $)a$ (as "enie" $)r%*g) $)e assaie" Se'$e&er 0, 0??0CA Res%*$i%n.T)*s, $)is 'e$i$i%n #%r revie( %n cer$i%rari is &e#%re *s, 'resen$ing $)e #%%(ing iss*es #%r c%nsi"era$i%n>

F S*'ra n%$e 0, a$ '. 0G.G

GSUPRE6E COURT REPORTS ANNOTATEDVivares vs. Re!esI

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W/ET/ER OR NOT T/E ANNOTATION O9 A NOTICE O9 LIS PENDENS PRECLUDES T/E APPOINT6ENT O9 A RECEIVERW/EN T/ERE IS A NEED TO SA9E4UARD T/E PROPERTIES IN LITI4ATION.II

W/ET/ER OR NOT A DUL7 APPOINTED RECEIVER O9 PROPERTIES IN LITI4ATION S/OULD BE DISC/AR4ED SI6PL7BECAUSE T/E ADVERSE PART7 O99ERS TO POST A COUNTERBOND.III

W/ET/ER OR NOT T/E CANCELLATION O9 A NOTICE O9 LIS PENDENS ANNOTATED ON TA8 DECLARATION NO. 110 ISCONTRAR7 TO LAW.G

T)e C%*r$s R*ingT)e 'e$i$i%n *s$ &e "enie". Being c%se! rea$e", (e "isc*ss $)e #irs$ an" sec%n" iss*es $%ge$)er.Receivers)i' n%$ *s$i#ie"We s*s$ain $)e CA r*ing $)a$ $)e $ria c%*r$ ac$e" ar&i$rari! in gran$ing $)e 'e$i$i%n #%r a''%in$en$ %# a receiver as $)ere (as n%s*##icien$ ca*se %r reas%n $% *s$i#! 'acing $)e "is'*$e" 'r%'er$ies *n"er receivers)i'.9irs$, 'e$i$i%ners assevera$e $)a$ res'%n"en$ aiena$e" severa c%%n 'r%'er$ies %# Severin% (i$)%*$ c%*r$ a''r%va an" (i$)%*$$)eir T)e '%(er $% a''%in$ a receiver is a "eica$e %ne an" s)%*" &e e:ercise" (i$) e:$ree ca*$i%n an" %n! *n"er circ*s$ances

re+*iring s*ar! reie# %r ()ere $)e c%*r$ is sa$is#ie" $)a$ $)ere is iinen$ "anger %# %ss, es$ $)e in*r! $)ere&! ca*se" &e #argrea$er $)an $)e in*r! s%*g)$ $% &e aver$e". T)e c%*r$ s)%*" c%nsi"er $)e c%nse+*ences $% a %# $)e 'ar$ies an" $)e '%(ers)%*" n%$ &e e:ercise" ()en i$ is i

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G@Vivares vs. Re!esT)e r*e s$a$es $)a$ $)e a''ica$i%n a! &e "enie" %r $)e receiver "isc)arge". In s$a$*$%r! c%ns$r*c$i%n, $)e (%r" a! )asa(a!s &een c%ns$r*e" as 'erissive. I# $)e in$en$ is $% a

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G.R. No. 1356.>/&(&r: 20, 2010.1.XW)e$)er %r n%$ res'%n"en$ 9i"ea is g*i$! %# #%r* s)%''ing c%nsi"ering $)a$ s)e )a" earier #ie" i"en$ica a''ica$i%ns #%rreceivers)i' %ver $)e s*&ec$ 'r%'er$ies in $)e criina cases s)e #ie" (i$) $)e RTC %# O%nga'% Ci$! agains$ 'e$i$i%ners Eveinaan" Ai"a an" in $)e a"inis$ra$ive case $)a$ s)e #ie" agains$ $)e &e#%re $)e DARAB; an"0.XW)e$)er %r n%$ $)e CA erre" in gran$ing res'%n"en$ 9i"eas a''ica$i%n #%r receivers)i'.

0 R%%, ''. @-. I"., a$ ''. 1-1. Penne" &! Ass%cia$e =*s$ice /a 1i"en$i$! %# 'ar$ies, %r a$ eas$ s*c) 'ar$ies as (%*" re'resen$ $)e sae in$eres$ in &%$) ac$i%ns; 0 i"en$i$! %# rig)$s asser$e" an"reie# 'ra!e" #%r, $)e reie# &eing #%*n"e" %n $)e sae #ac$s; an" i"en$i$! %# $)e $(% 'rece"ing 'ar$ic*ars s*c) $)a$ an!

*"gen$ ren"ere" in $)e %$)er ac$i%n (i, regar"ess %# ()ic) 'ar$! is s*ccess#*, a%*n$ $% res *"ica$a in $)e ac$i%n *n"erc%nsi"era$i%n./ere, )%(ever, $)e vari%*s s*i$s 9i"ea ini$ia$e" agains$ Eveina an" Ai"a inv%ve" "i##eren$ ca*ses %# ac$i%n an" s%*g)$ "i##eren$reie#s. T)e 'resen$ civi ac$i%n $)a$ s)e #ie" (i$) $)e RTC s%*g)$ $% rec%ver '%ssessi%n %# $)e 'r%'er$! &ase" %n Eveina an"

Ai"as #ai*re $% acc%*n$ #%r i$s #r*i$s. T)e es$a#a cases s)e #ie" (i$) $)e RTC acc*se" $)e $(% %# isa''r%'ria$ing an" c%nver$ing)er s)are in $)e )arves$s #%r $)eir %(n &ene#i$. /er c%'ain$ #%r "is'%ssessi%n *n"er Re'*&ic Ac$ G?G (i$) $)e DARAB s%*g)$$% "is'%ssess $)e $(% #%r aege"! c*$$ing c%c%n*$ $rees (i$)%*$ $)e 'ri%r a*$)%ri$! %# 9i"ea %r %# $)e P)ii''ine C%c%n*$ A*$)%ri$!.T)e a&%ve cases are siiar %n! in $)a$ $)e! inv%ve" $)e sae 'ar$ies an" 9i"ea s%*g)$ $)e 'acing %# $)e 'r%'er$ies *n"erreceivers)i' in a %# $)e. B*$ receivers)i' is n%$ an ac$i%n. I$ is &*$ an a*:iiar! ree"!, a ere inci"en$ %# $)e s*i$ $% )e'ac)ieve i$s '*r'%se. C%nse+*en$!, i$ cann%$ &e sai" $)a$ $)e gran$ %# receivers)i' in %ne case (i a%*n$ $%

P)ii''ine Na$i%na C%ns$r*c$i%n C%r'%ra$i%n v. D!, 4.R. N%. 1GGF, Oc$%&er , 0??, F0 SCRA 1, . Cr*5 v. Cara%s, 4.R. N%. 1G0?G, A'ri 0, 0??F, 01 SCRA 1?, 00.?

?SUPRE6E COURT REPORTS ANNOTATEDC)ave5 vs. C%*r$ %# A''easres *"ica$a %n $)e eri$s %# $)e %$)er cases. T)e gran$ %r "enia %# $)is 'r%visi%na ree"! (i s$i "e'en" %n $)e nee" #%r i$ in $)e'ar$ic*ar ac$i%n.T(%.XIn an! even$, (e )%" $)a$ $)e CA erre" in gran$ing receivers)i' %ver $)e 'r%'er$! in "is'*$e in $)is case. 9%r %ne $)ing, a'e$i$i%n #%r receivers)i' *n"er Sec$i%n 1&, R*e @ %# $)e R*es %# Civi Pr%ce"*re re+*ires $)a$ $)e 'r%'er$! %r #*n" s*&ec$ %#$)e ac$i%n is in "anger %# &eing %s$, re%ve", %r a$eria! in*re", necessi$a$ing i$s 'r%$ec$i%n %r 'reserva$i%n. I$s %&ec$ is $)e'reven$i%n %# iinen$ "anger $% $)e 'r%'er$!. I# $)e ac$i%n "%es n%$ re+*ire s*c) 'r%$ec$i%n %r 'reserva$i%n, $)e ree"! is n%$receivers)i'./ere 9i"eas ain gri'e is $)a$ Eveina an" Ai"a "e'rive" )er %# )er s)are %# $)e an"s 'r%"*ce. S)e "%es n%$ cai $)a$ $)e an"%r i$s 'r%"*c$ive ca'aci$! (%*" "isa''ear %r &e (as$e"

i# n%$ en$r*s$e" $% a receiver. N%r "%es 9i"ea cai $)a$ $)e an" )as &een a$eria! in*re", necessi$a$ing i$s 'r%$ec$i%n an"'reserva$i%n. Beca*se receivers)i' is a )ars) ree"! $)a$ can &e gran$e" %n! in e:$ree si$*a$i%ns,F 9i"ea *s$ 'r%ve a cearrig)$ $% i$s iss*ance. B*$ s)e )as n%$. In"ee", in n%ne %# $)e %$)er cases s)e #ie" agains$ Eveina an" Ai"a )as $)a$ ree"! &eengran$e" )er.GBesi"es, $)e RTC "isisse" 9i"eas ac$i%n #%r ac< %# *ris"ic$i%n %ver $)e case, )%"ing $)a$ $)e iss*es i$ raise" 'r%'er! &e%ng$% $)e DARAB. T)e case &e#%re $)e CA is &*$ an %##s)%%$ %# $)a$ RTC case. 4iven $)a$ $)e RTC )as #%*n" $)a$ i$ )a" n%

*ris"ic$i%n %ver $)e case, i$ (%*" see %re 'r*"en$ #%r $)e CA $% #irs$ 'r%visi%na! "e$erine $)a$ $)e RTC )a" *ris"ic$i%n&e#%re gran$ing receivers)i' ()ic) is &*$ an inci"en$ %# $)e ain ac$i%n. KC)ave5 vs. C%*r$ %# A''eas, 1? SCRA @@0?1?

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G.R. No. 1063. /%: 12, 1993.

Assaie" in $)is 'e$i$i%n #%r revie( %n cer$i%rari is $)e "ecisi%n "a$e" =*! 0@, 1@@0 %# $)e C%*r$ %# A''eas in CA-4.R. SP N%.0F@FF, a##iring $)e %r"ers "a$e" 6arc) 1F, 1@@0 an" A'ri 0F, 1@@0 %# $)e $ria c%*r$ in Civi Case N%. 6AN-11G, gran$ingres'%n"en$s 'e$i$i%n #%r receivers)i' an" "en!ing 'e$i$i%ners %$i%n #%r rec%nsi"era$i%n $)ere%#.On A*g*s$ @, 1@@1, res'%n"en$ Cai% B%rr%e%, a rea$%r, #ie" agains$ 'e$i$i%ner a civi c%'ain$ #%r $)e rec%ver! %# $)ree 'arces %# an" an" $)e )%*se &*i$ $)ere%n in $)e '%ssessi%n %# $)e 'e$i$i%ner an" regis$ere" in )er nae *n"er Trans#erCer$i#ica$es %# Ti$e N%s. 0F@?, 0F@1 an" 0F@0 %# $)e Regis$r! %# Dee"s #%r $)e Ci$! %# 6an"a*e. T)e case (as "%c

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#%r )er %(n &ene#i$ an" en%!en$.T)ere is n% a( ()ic) "ecares n* an" v%i" a sae ()ere $)e ven"ee $% ()% $)e $i$e %# $)e $)ing s%" is $rans#erre" %rc%nve!e", 'ai" $)e 'rice (i$) %ne! %&$aine" #r% a $)ir" 'ers%n. I# $)a$ (ere s%, a &an< (%*" &e $)e %(ner %# ()a$ever is'*rc)ase" (i$) #*n"s &%rr%(e" #r% i$ &! $)e ven"ee. T)e )%"ing %# $)e $ria c%*r$ an" $)e C%*r$ %# A''eas $)a$ =a&ric),n%$(i$)s$an"ing )is ega inca'aci$! $% ac+*ire rea 'r%'er$! in $)e P)ii''ines, is $)e %(ner %# $)e )%*se an" %$ ()ic) )isers$()ie is$ress, An$%nie$$a, '*rc)ase" (i$) %ne! s)e %&$aine" #r% )i, is a ega )eres!.In vie( %# $)e a&%ve circ*s$ances, (e #in" $)e %r"er %# receivers)i' $ain$e" (i$) grave a&*se %# "iscre$i%n. T)e a''%in$en$ %# areceiver is n%$ 'r%'er ()ere $)e rig)$s %# $)e 'ar$ies %ne %# ()% is in '%ssessi%n %# $)e 'r%'er$!, are s$i $% &e "e$erine" &!$)e $ria c%*r$.Reie# &! (a! %# receivers)i' is e+*i$a&e in na$*re, an" a c%*r$ %# e+*i$! (i n%$ %r"inari! a''%in$ a receiver ()ere $)e rig)$s %#$)e 'ar$ies "e'en" %n $)e "e$erina$i%n %# a"verse cais %# ega $i$e $% rea 'r%'er$! an" %ne 'ar$! is in '%ssessi%n. Ca%, e$

a. vs. R%"an, F P)i. .On! ()en $)e 'r%'er$! is in "anger %# &eing a$eria! in*re" %r %s$, as &! $)e 'r%s'ec$ive #%rec%s*re %# a %r$gage $)ere%n #%rn%n-'a!en$ %# $)e %r$gage %ans "es'i$e $)e c%nsi"era&e inc%e "erive" #r% $)e 'r%'er$!, %r i# '%r$i%ns $)ere%# are &eing%cc*'ie" &! $)ir" 'ers%ns caiing a"verse $i$e $)ere$%, a! $)e a''%in$en$ %# a receiver &e *s$i#ie" 6%$%%* vs. Arrie$a, GSCRA 1F0.F?

F?SUPRE6E COURT REPORTS ANNOTATEDDescaar vs. C%*r$ %# A''easIn $)is case, $)ere is n% s)%(ing $)a$ grave %r irree"ia&e "aage a! res*$ $% res'%n"en$ B%rr%e% *ness a receiver isa''%in$e". T)e 'r%'er$! in +*es$i%n is rea 'r%'er$!, )ence, i$ is nei$)er 'eris)a&e %r c%ns*a&e. Even $)%*g) i$ is %r$gage"$% a $)ir" 'ers%n, $)ere is n% evi"ence $)a$ 'a!en$ %# $)e %r$gage %&iga$i%n is &eing negec$e". In an! even$, $)e 'riva$eres'%n"en$s rig)$s an" in$eres$s, a! &e a"e+*a$e! 'r%$ec$e" "*ring $)e 'en"enc! %# $)e case &! ca*sing )is a"verse cai $%&e ann%$a$e" %n $)e 'e$i$i%ners cer$i#ica$es %# $i$e.

An%$)er #a( in $)e %r"er %# receivers)i' is $)a$ $)e 'ers%n ()% $)e $ria *"ge a''%in$e" as receiver is )er %(n cer< %# c%*r$.T)is 'rac$ice )as &een #r%(ne" *'%n &! $)is C%*r$>T)e res'%n"en$ *"ge c%i$$e" grave a&*se %# "iscre$i%n in c%nnec$i%n (i$) $)e a''%in$en$ %# a receiver. : : :. T)e ins$an$case is siiar $% Parane$e vs. Tan, GF P)i. FG 1@? s% $)a$ ()a$ (as $)ere sai" can (e a''! $% $)e ac$*a$i%ns %# $)eres'%n"en$ *"ge. : : : We )%" $)a$ $)e res'%n"en$ *"ge )as ac$e" in e:cess %# )is *ris"ic$i%n ()en )e iss*e" $)e %r"er a&%vea"ver$e" $%. T)a$ %r"er, in e##ec$, a"e $)e cer< %# c%*r$ a s%r$ %# a receiver c)arge" (i$) $)e "*$! %# receiving $)e 'r%cee"s %#sae an" $)e )arves$ %# ever! !ear "*ring $)e 'en"enc! %# $)e case (i$) $)e "isa"van$age $)a$ $)e cer< %# c%*r$ )as n%$ #ie" an!&%n" $% g*aran$ee $)e #ai$)#* "isc)arge %# )is "*$ies as "e'%si$ar!; an" c%nsi"ering $)a$ in ac$i%ns inv%ving $i$e $% rea 'r%'er$!,$)e a''%in$en$ %# a receiver cann%$ &e en$er$aine" &eca*se i$s e##ec$ (%*" &e $% $a

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G.R. No. 152239.>A?t 1, 2011.a W)en $)e c%r'%ra$i%n )as &een "iss%ve", %r is ins%ven$, %r is in iinen$ "anger %# ins%venc!, %r )as #%r#ei$e" i$s c%r'%ra$erig)$s;& W)en i$ a''ears #r% $)e c%'ain$ %r ans(er, an" s*c) %$)er 'r%%# as $)e *"ge a! re+*ire, $)a$ $)e 'ar$! a''!ing #%r $)ea''%in$en$ %# receiver )as an in$eres$ in $)e 'r%'er$! %r #*n" ()ic) is $)e s*&ec$ %# $)e ac$i%n, an" $)a$ s*c) 'r%'er$! %r #*n" isin "anger %# &eing %s$, re%ve" %r a$eria! in*re" *ness a receiver &e a''%in$e" $% g*ar" an" 'reserve i$;c W)en i$ a''ears in an ac$i%n &! $)e %r$gagee #%r $)e #%rec%s*re %# a %r$gage $)a$ $)e 'r%'er$! is in "anger %# &eing (as$e"%r a$eria! in*re", an" $)a$ i$s va*e is 'r%&a&! ins*##icien$ $% "isc)arge $)e %r$gage "e&$, %r $)a$ $)e 'ar$ies )ave s%

s$i'*a$e" in $)e c%n$rac$ %# %r$gage;" A#$er *"gen$, $% 'reserve $)e 'r%'er$! "*ring $)e 'en"-enc! %# $)e a''ea, %r $% "is'%se %# i$ acc%r"ing $% $)e *"gen$, %r $%ai" e:ec*$i%n ()en $)e e:ec*$i%n )as &een re$*rne" *nsa$is#ie" %r $)e *"gen$ "e&$%r re#*ses $% a''! )is 'r%'er$! insa$is#ac$i%n %# $)e *"gen$, %r %$)er(ise carr! $)e *"gen$ in$% e##ec$;e W)enever in %$)er cases i$ a''ears $)a$ $)e a''%in$en$ %# a receiver is $)e %s$ c%nvenien$ an" #easi&e eans %#'reserving, a"inis$ering, %r "is'%sing %# $)e 'r%'er$! in i$iga$i%n.

A receiver %# rea %r 'ers%na 'r%'er$!, ()ic) is $)e s*&ec$ %# $)e ac$i%n, a! &e a''%in$e" &! $)e c%*r$ ()en i$ a''ears #r% $)e'ea"ings %r s*c) %$)er 'r%%# as $)e *"ge a! re+*ire, $)a$ $)e 'ar$! a''!ing #%r s*c) a''%in$en$ )as 1 an ac$*a in$eres$ ini$; an" 0 $)a$ a s*c) 'r%'er$! is in "anger %# &eing %s$, re%ve" %r a$eria! in*re"; %r & ()enever i$ a''ears $% &e $)e %s$c%nvenien$ an" #easi&e eans %# 'reserving %r a"inis$ering $)e 'r%'er$! in i$iga$i%n.@

@ Raa v. /%n. Acasi", 11 P)i. 00, 0 K1@0.

SUPRE6E COURT REPORTS ANNOTATEDC%%"i$ies S$%rage M Ice Pan$ C%r'. vs. C%*r$ %# A''eas

A receiver is a 'ers%n a''%in$e" &! $)e c%*r$ in &e)a# %# a $)e 'ar$ies $% $)e ac$i%n #%r $)e '*r'%se %# 'reserving an" c%nserving$)e 'r%'er$! in i$iga$i%n an" 'reven$ i$s '%ssi&e "es$r*c$i%n %r "issi'a$i%n, i# i$ (ere e#$ in $)e '%ssessi%n %# an! %# $)e 'ar$ies.1?T)e a''%in$en$ %# a receiver is n%$ a a$$er %# a&s%*$e rig)$. I$ "e'en"s *'%n $)e s%*n" "iscre$i%n %# $)e c%*r$11 an" is &ase"%n #ac$s an" circ*s$ances %# eac) 'ar$ic*ar case.10Pe$i$i%ners cai $)a$ $)e a''%in$en$ %# a receiver is *s$i#ie" *n"er Sec$i%n 1& %# R*e @. T)e! arg*e $)a$ $)e ice 'an$ ()ic) is$)e s*&ec$ %# $)e ac$i%n (as in "anger %# &eing %s$, re%ve" an" a$eria! in*re" &eca*se %# $)e #%%(ing iinen$ 'eris>.1 Danger $% $)e ives, )ea$) an" 'eace %# in" %# $)e in)a&i$an$s iving near $)e S$a. 6aria Ice Pan$;.0 Dras$ic ac$i%n %r sanc$i%ns $)a$ c%*" &e &r%*g)$ agains$ $)e 'ain$i## &! a##ec$e" $)ir" 'ers%ns, inc*"ing (%r

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GSUPRE6E COURT REPORTS ANNOTATEDC%%"i$ies S$%rage M Ice Pan$ C%r'. vs. C%*r$ %# A''eas$i%n s)%*" &e a''%in$e" as receiver (i$)%*$ $)e c%nsen$ %# $)e %$)er &eca*se a receiver s)%*" &e a 'ers%n in"i##eren$ $% $)e'ar$ies an" s)%*" &e i'ar$ia an" "isin$eres$e".1G T)e receiver is n%$ $)e re'resen$a$ive %# an! %# $)e 'ar$ies &*$ %# a %# $)e $%$)e en" $)a$ $)eir in$eres$s a! &e e+*a! 'r%$ec$e" (i$) $)e eas$ '%ssi&e inc%nvenience an" e:'ense.1@T)e '%(er $% a''%in$ a receiver *s$ &e e:ercise" (i$) e:$ree ca*$i%n. T)ere *s$ &e a cear s)%(ing %# necessi$! $)ere#%r in%r"er $% save $)e 'ain$i## #r% grave an" irree"ia&e %ss %r "aage.0? I$ is %n! ()en $)e circ*s$ances s% "ean", ei$)er&eca*se $)ere is iinen$ "anger $)a$ $)e 'r%'er$! s%*g)$ $% &e 'ace" in $)e )an"s %# a receiver &e %s$ %r &eca*se $)e! r*n $)eris< %# &eing i'aire", en"eav%*ring $% av%i" $)a$ $)e in*r! $)ere&! ca*se" &e grea$er $)an $)e %ne s%*g)$ $% &e av%i"e".01T)e C%*r$ %# A''eas c%rrec$! #%*n" $)a$ $)e $ria c%*r$ grave! a&*se" i$s "iscre$i%n in iss*ing $)e %r"er #%r receivers)i'. T)e

res'%n"en$ c%*r$, )%(ever, (en$ #*r$)er an" $%%< c%gni5ance %# res'%n"en$ &an TWO 6ILLION9IVE /UNDRED T/OUSAND an" ??Q1?? P0,??,???.??;0. Or"ering $)e De#en"an$ $% 'a! Pain$i##s %ra "aages in $)e a%*n$ %# PESOS> TWO 6ILLION an" ??Q1?? P0,???,???.??$% c%'ensa$e $)e Pain$i##s #%r $)e an:ie$! an" &esirc)e" re'*$a$i%n ca*se" &! $)e *n*s$ ac$*a$i%ns %# $)e De#en"an$;

. Or"ering $)e De#en"an$ $% 'a! Pain$i##s n%ina an" e:e'ar! "aages in $)e a%*n$ %# PESOS> 9IVE /UNDREDT/OUSAND an" ??Q1?? P??,???.?? $% "e$er $)e re'e$i$i%n %# s*c) *n*s$ an" aici%*s ac$*a$i%ns %# $)e De#en"an$;.In %r"er $% res$%re $)e ega rig)$ %# $)e Pain$i## CO66ODITIES $% re"ee i$s #%rec%se" 'r%'er$!, a rig)$ ()ic) CO66ODITIES)as &een *n*s$! "e'rive" %# &! $)e aici%*s an" &a" #ai$) ac)ina$i%ns %# $)e De#en"an$, c%'eing $)e De#en"an$ $% 'r%"*ce$)e c%rrec$, a(#*, %##icia an" )%nes$ s$a$een$s %# acc%*n$ an" a''ica$i%n %# 'a!en$. C%nc%i$an$!, %r"ering $)e De#en"an$ $%acce'$ $)e re"e'$i%n %# $)e #%rec%se" 'r%'er$ies '*rs*an$ $% R*e @ %# $)e Revise" R*es %# C%*r$ in c%n*nc$i%n (i$) Ac$ 1,(i$)in $)e 'rescri&e" 'eri%" #%r re"e'$i%n, sai" 'eri%" $% c%ence #r% $)e "a$e %# recei'$ &! $)e Pain$i## CO66ODITIES %#$)e c%rrec$, a(#*, %##icia an" )%nes$ s$a$een$s %# acc%*n$ an" a''ica$i%n %# 'a!en$s;

0 T)e a''ea$e c%*r$ a! c%nsi"er an *nassigne" err%r i# i$ is c%se! rea$e" $% an err%r 'r%'er! assigne", %r *'%n ()ic) a"e$erina$i%n %# $)e err%r 'r%'er! assigne" is "e'en"en$. 4arri"% v. C%*r$ %# A''eas, 0 SCRA ? K1@@; 6e"i"a v. C%*r$ %#

A''eas, 0?G SCRA GG, G@ K1@@0; R%an Ca$)%ic Arc)&is)%' %# 6ania v. C%*r$ %# A''eas, 1@G SCRA ??, 11 K1@@1;

P)ii''ine C%ercia an" In"*s$ria Ban< v. C%*r$ %# A''eas, 1@ SCRA 0, 1 K1@GG.?

?SUPRE6E COURT REPORTS ANNOTATEDC%%"i$ies S$%rage M Ice Pan$ C%r'. vs. C%*r$ %# A''eas.Or"ering $)e De#en"an$ $% 'a! a$$%rne!s #ees in $)e a%*n$ %# PESOS> T/REE /UNDRED T/OUSAND P??,???.??; an"c%s$s %# i$iga$i%n.O$)er reie#s an" ree"ies *s$ an" e+*i$a&e *n"er $)e circ*s$ances are i

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0F I"., =%ven v. C%*r$ %# A''eas, 010 SCRA F??, F?@ K1@@0; De Cas$r% v. In$ere"ia$e A''ea$e C%*r$, 1 SCRA , 0K1@GG.1

VOL. 0F, =UNE 1@, 1@@F1C%%"i$ies S$%rage M Ice Pan$ C%r'. vs. C%*r$ %# A''eas'ar$i$i%n %r c%n"ena$i%n %#, %r #%rec%s*re %# %r$gage %n, rea 'r%'er$!, s)a &e c%ence" an" $rie" in $)e 'r%vince ()ere $)e'r%'er$! %r an! 'ar$ $)ere%# ies.0GW)ere $)e ac$i%n a##ec$s $i$e $% $)e 'r%'er$!, i$ s)%*" &e ins$i$*$e" in $)e Regi%na Tria C%*r$ ()ere $)e 'r%'er$! is si$*a$e". T)eS$a. 6aria Ice Pan$ M C%" S$%rage is %ca$e" in S$a. 6aria, B*acan. T)e ven*e in Civi Case N%. @-F0?F (as $)ere#%re ai"

i'r%'er!.9ina!, $)ere is n% eri$ in 'e$i$i%ners cai $)a$ $)e res'%n"en$ &an< is n% %nger $)e rea 'ar$! in in$eres$ a#$er seing $)e ice'an$ $% a $)ir" 'ers%n "*ring $)e 'en"enc! %# $)e case. Sec$i%n 0? %# R*e %# $)e Revise" R*es %# C%*r$ 'r%vi"es $)a$ in a$rans#er %# in$eres$ 'en"ing i$iga$i%n, $)e ac$i%n a! &e c%n$in*e" &! %r agains$ $)e %rigina 'ar$!, *ness $)e c%*r$, *'%n %$i%n,"irec$s $)e $rans#eree $% &e s*&s$i$*$e" in $)e ac$i%n %r %ine" (i$) $)e %rigina 'ar$!. T)e c%*r$ )as n%$ %r"ere" $)e s*&s$i$*$i%n %#res'%n"en$ &an

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[No. 8239. Otober 22, 194]$RE! M. AR!EN, pet't'o(er, +. "E !IREC"OR O$ PRISONS, repo(*e(t.

1./ABEAS CORPUS; 4ROUNDS 9OR RELIE9.Br%a"! s'eaI$ a''earing $)a$ $)e "e#en"an$ 9re" 6. /ar"en )as n%$ *' $% $)is "a$e c%'ie" (i$) $)e %r"ers %# $)is c%*r$ %# Oc$%&er F, 1@Fan" 6arc) 0F, 1@G;As 'ra!e" #%r, $)e c%*r$ %r"ers $)e arres$ %# $)e "e#en"an$ 9re" 6. /ar"en as (e as )is c%n#ineen$ a$ $)e Ne( Bii&i" Pris%ns,6*n$in*'a, Ri5a, *n$i )e c%'ies (i$) $)e a#%reen$i%ne" %r"ers.T)e 'r%cee"ing #%r c%n$e'$ ar%se in a civi case &e$(een 6rs. /ar"en as 'ain$i## an" $)e 'e$i$i%ner an" an%$)er 'ers%n as"e#en"an$s, c%ence" %n =*! 10, 1@1, an" inv%ving $)e a"inis$ra$i%n %# a c%n*ga 'ar$ners)i', 'a!en$ %# ai%n!, an"acc%*n$ing. In $)a$ case, a receiver (as a''%in$e" an" a 'reiinar! in*nc$i%n (as iss*e" res$raining 9re" 6. /ar"en an" )is

c%"e#en"an$, =%se Sa*&i"es, #r% $rans#erring %r aiena$ing, e:ce'$ #%r a va*a&e c%nsi"era$i%n an" (i$) $)e c%nsen$ %# $)ec%*r$ #irs$ )a" an" %&$aine", %ne!s, s)ares %# s$%c

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W)ere#%re, #in"ing $)e %$i%n %# $)e 'ain$i## %# Se'$e&er @, 1@F, $% &e (e #%*n"e", #%r $)e '*r'%se %# 'reserving $)e s$a$*s+*% an" in %r"er $)a$ $)e a%*n$s a&%ve re#erre" $% a! s$an" rea"! $% ans(er #%r an! egi$ia$e cais %# $)e 4%vernen$ in $)e#%r %# $a:es, $)e a#%reen$i%ne" %$i%n is )ere&! gran$e" an" "e#en"an$ 9re" 6. /ar"en is )ere&! %r"ere" $% re$*rn,. (i$)in a'eri%" %# 1 "a!s #r% $)e recei'$ %# a c%'! )ere%#, $)e a%*n$ %# P1,???,?G. $% $)e P)ii''ines an" $% re"e'%si$ $)e sae (i$)$)e acc%*n$s %# $)e Pa5a L*nc) a$ $)e 6ania Branc) %# $)e C)ar$ere" Ban< %# In"ia, A*s$raia an" C)ina,. (i$) $)e *n"ers$an"ing$)a$ *'%n #ai*re $% c%'! (i$) $)is %r"er )e (i &e "ecare" in c%n$e'$ %# c%*r$.

A#$er a 'e$i$i%n #%r cer$i%rari (as ins$i$*$e" &! /ar"en in $)e S*'ree C%*r$ an" "eci"e", an" a#$er vari%*s %$i%ns (ere #ie" an")ear", =*"ge Pe2a, %n 6arc) 0F, 1@G, en$ere" an %r"er, ()ic) (as a %"i#ica$i%n %# $)a$ %# Oc$%&er F, 1@F, "irec$ing, /ar"en$% "e'%si$ (i$) $)e 6ania Branc) %# $)e C)ar$ere" Ban< %# In"ia, A*s$raia i C)ina (i$)in #ive "a!s #r% recei'$ %# a c%'! %# $)is%r"er $)e %ne! an" "ra#$s $)a$ )e )as ac$*a! in /%ng

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in Was)ing$%n ci$!, in $)e Dis$ric$ %# C%*&ia, a %$ %# e(er!, (a$c)es an" siver(are, $% &e &! )i "is'%se" %# #%r $)eir &ene#i$.S% #ar as a''ears $% $)e c%n$rar!, $)e g%%"s s% c%nsigne" (ere s$i in $)e '%ssessi%n %# Ne($%n a$ Was)ing$%n ()en $)e %r"er(as en$ere" %n A'ri F, 1GGF, #%r $)e c%i$en$ %# a''ean$ #%r c%n$e'$. Wi$)in a (ee< %r 1? "a!s a#$er )is a''%in$en$ asreceiver, a''eee gave n%$ice %# s*c) a''%in$en$ $% Ne($%n, an" "ean"e" a re$*rn %# $)e g%%"s. On 6a! 1G, 1GGF, $)e6eri"en Bri$annia C%'an!, a c%r'%ra$i%n %rgani5e" *n"er $)e a(s %# $)e s$a$e %# C%nnec$ic*$, &eing a cre"i$%r %# Ca'' an"Davies, c%ence" an a$$ac)en$ s*i$ agains$ $)e #%r $)e a%*n$ %# i$s cai in $)e S*'ree C%*r$ %# $)e Dis$ric$ %# C%*&ia,an" a$$ac)e" $)e g%%"s in $)e )an"s %# Ne($%n.T)e 'ena$! c%'aine" %# is nei$)er cr*e, *n*s$ n%r e:cessive. In E:-'ar$e Jeer, 1 U.S., , $)e Uni$e" S$a$es S*'reeC%*r$ sai" $)a$ '*nis)en$s are cr*e ()en $)e! inv%ve $%r$*re %r a ingering "ea$), &*$ $)e '*nis)en$ %# "ea$) is n%$ cr*e,(i$)in $)e eaning %# $)a$ (%r" as *se" in $)e c%ns$i$*$i%n. I$ i'ies $)ere s%e$)ing in)*an an" &ar&ar%*s, s%e$)ing %re$)an $)e ere e:$ing*is)en$ %# i#e.

T)e '*nis)en$ e$e" %*$ $% $)e 'e$i$i%ner is n%$ e:cessive. I$ is s*i$a&e an" a"a'$e" $% i$s %&ec$ive; an"FG

FGP/ILIPPINE REPORTS ANNOTATED/ar"en vs. Direc$%r %# Pris%nsi$ acc%r"s (i$) sec$i%n F, R*e . %# $)e R*es %# C%*r$ ()ic) 'r%vi"es $)a$ ()en $)e c%n$e'$ c%nsis$s in $)e %issi%n $% "% anac$ ()ic) is !e$ in $)e '%(er %# $)e acc*se" $% 'er#%r, )e a! &e i'ris%ne" &! %r"er %# a s*'eri%r c%*r$ *n$i )e 'er#%rs i$.I# $)e $er %# i'ris%nen$ in $)is case is in"e#ini#e an" ig)$ as$ $)r%*g) $)e na$*ra i#e %# $)e 'e$i$i%ner, !e$ &! $)e $ers %# $)esen$ence $)e (a! is e#$ %'en #%r )i $% av%i" serving an! 'ar$ %# i$ &! c%'!ing (i$) $)e %r"ers %# $)e c%*r$, an" in $)is anner'*$ an en" $% )is incarcera$i%n. In $)ese circ*s$ances, $)e *"gen$ can n%$ &e sai" $% &e e:cessive %r *n*s$. Davis vs. 6*r')!K1@F, 1GG P., 0n", 00@]01. As s$a$e" in a %re recen$ case De Wees K1@G, 01? S.W., 0", 1]1F, $% %r"er $)a$ %ne &ei'ris%ne" #%r an in"e#ini$e 'eri%" in a civi c%n$e'$ is '*re! a ree"ia eas*re. I$s '*r'%se is $% c%erce $)e c%n$ener $% "%an ac$ (i$)in )is %r )er '%(er $% 'er#%r. /e *s$ )ave $)e eans &! ()ic) )e a! '*rge )ise# %# $)e c%n$e'$, T)e a$$er"ecisi%n ci$es S$ae! vs. S%*$) =erse! Rea$! C%., G N.=. E+., ??, @? A., 1?0, 1?, in ()ic) $)e $)e%r! is e:'resse" in $)isang*age>In a ^civi c%n$e'$ $)e 'r%cee"ing is ree"ia, i$ is 0. s$e' in $)e case $)e %&ec$ %# ()ic) is $% c%erce %ne 'ar$! #%r $)e &ene#i$ %#$)e %$)er 'ar$! $% "% %r $% re#rain #r% "%ing s%e ac$ s'eci#ie" in $)e %r"er %# $)e c%*r$, /ence, i# i'ris%nen$ &e %r"ere", i$ isree"ia in '*r'%se an" c%ercive in c)arac$er, an" $% $)a$ en" *s$ rea$e $% s%e$)ing $% &e "%ne &! $)e "e#en"an$ &! $)e "%ing%# ()ic) )e a! "isc)arge )ise#. As +*ain$! e:'resse", $)e i'ris%ne" an ^carries $)e

Since 6a! , 1@G, 9re" 6. /ar"en )as &een 'ace" *n"er arres$ an" c%n#ine" a$ $)e Bii&i" Pris%ns, 6*n$ing*'a, *n"er $)ec)arge %# $)e Direc$%r %# Pris%ns.Res'%n"en$s a*$)%ri$! #%r c%n#ining 'e$i$i%ner is &ase" %n $)e %r"er %# =*"ge Eii% Pe2a, %# $)e C%*r$ %# 9irs$ Ins$ance %# 6ania,iss*e" %n A'ri 0G,

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1@G. ()ic) rea"s as #%%(s>I$ a''earing $)a$ $)e "e#en"an$ 9re" 6. /ar"en )as n%$ *' $% $)is "a$e c%'ie" (i$) $)e %r"ers %# $)is c%*r$ %# Oc$%&er F, 1@F,an" 6arc) 0F, 1@G;As 'ra!e" #%r, $)e c%*r$ %r"ers $)e arres$ %# $)e "e#en"an$ 9re" 6. /ar"en as (e as )is c%n#ineen$ a$ $)e Ne( Bii&i" Pris%ns,6*n$in*'a, Ri5a, *n$i )e c%'ies (i$) $)e a#%reen$i%ne" %r"ers.T)e %r"er %# Oc$%&er F, 1@F, re+*ires /ar"en $% re$*rn #r% a&r%a" (i$)in a 'eri%" %# 1 "a!s, $)e a%*n$ %# P1,???,?G. $%$)e P)ii''ines an" $% re"e'%si$ $)e sae (i$). $)e acc%*n$s %# $)e Pa5a L*nc) %# $)e 6ania &ranc) %# $)e C)ar$ere" Ban< %#In"ia, A*s$raia an" C)ina.F1

VOL. G1, OCTOBER 00, 1@G

F1/ar"en vs. Direc$%r %# Pris%nsT)e %r"er %# 6arc) 0F, 1@G, re+*ires /ar"en $% "e'%si$ (i$) $)e sae &an< $)e %ne! an" "ra#$s $)a$ )e )as ac$*a! in/%ng

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F

FP/ILIPPINE REPORTS ANNOTATEDS*ers vs. O5ae$a an" Agrega"%%&e"ience '*nis)e" (i$) i'ris%nen$ $)a$ )as n% '%ssi&e en" e:ce'$ "ea$),We )%" $)a$ $)e %(er c%*r$ erre" in iss*ing $)e %r"er %# A'ri 'ri 0G, 1@G, in s% #ar as i$ %r"ers $)a$ 'e$i$i%ner &e c%n#ine" #%r anin"e#ini$e 'eri%" %# $ie.We "isagree (i$) $)e 'r%n%*nceen$s in $)e a%ri$! %'ini%n, ii$ing $)e sc%'e %# $)e (ri$ %# )a&eas c%r'*s an" iss*ing in #av%r%# $)e %(er c%*r$ $)e 'a$en$ %# in#ai&ii$! %n $)e en ac$*a +*es$i%n %# ()e$)er %r n%$ $)e ac$ %r"ere" $% &e 'er#%re" is s$i in $)e)an"s %# 'e$i$i%ner $% 'er#%r. S*c) 'r%n%*nceen$s are n%$ s*''%r$e" &! a( n%r &! an! 'rinci'e %# s*&s$an$ia *s$ice.

Regar"ess %# $)e eng$) %# $)e c)ain %# err%ne%*s "ecisi%ns s*''%r$ing s*c) 'r%n%*nceen$s, $)e err%rs s)a c%n$in*e $% &eerr%rs. T)e eng$) %# $)e c)ain a! %n! e')asi5e $)e a%*n$ %# in*s$ices 'er'e$ra$e" *n"er s*c) 'r%n%*nceen$s.Ass*ing $)a$ $)e %(er c%*r$ #%*n" 'e$i$i%ner g*i$! %# c%n$e'$, i$ c%*" )ave '*nis)e" 'e$i$i%ner *' $% $)e a:i* 'ena$ies'r%vi"e" &! sec$i%n %# R*e &*$ never %re. C%nsi"ering $)a$ 'e$i$i%ner )as area"! *n"erg%ne $)e a:i* %# si: %n$)si'ris%nen$, even %n $)e ass*'$i%n $)a$ )e is g*i$!, )e is en$i$e" $% &e reease" #r% c%n#ineen$.We v%$e $% gran$ $)e 'e$i$i%n an" $% ie"ia$e! reease 9re" 6. /ar"en #r% c%n#ineen$ an" #r% $)e c*s$%"! %# res'%n"en$Direc$%r %# Pris%ns.Pe$i$i%n "enie". K/ar"en vs. Direc$%r %# Pris%ns, G1 P)i. F11@G

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[No. 8252. M&r 30, 196]"RAN-IINO CAO &(* !ORO"EO SAN /OSE, pet't'o(er, +. ARSENIO C. RO!AN, /*?e o) $'rt I(t&(e o)&?(&. REGINO REO;A &(* "EO!-A #AR"OOME, repo(*e(t.

1.ACTIONS; W/AT DETER6INES NATURE O9.I$ is a $r*is in ega 'r%ce"*re $)a$ ()a$ "e$erines $)e na$*re %# an ac$i%n#ie" in $)e c%*r$s are $)e #ac$s aege" in $)e c%'ain$ as c%ns$i$*$ing $)e ca*se %# $)e ac$i%n. T)e #ac$s averre" as a "e#ense in$)e "e#en"an$Hs ans(er "% n%$ an" can n%$ "e$erine %r c)ange $)e na$*re %# $)e 'ain$i##Hs ac$i%n. T)e $)e%r! a"%'$e" &! $)e'ain$i## in )is c%'ain$ is %ne $)ing, an" $)a$ %# $)e "e#en"an$ in )is ans(er is an%$)er. T)e 'ain$i## )as $% es$a&is) %r 'r%ve )is$)e%r! %r ca*se %# ac$i%n in %r"er $% %&$ain $)e ree"! )e 'ra!s #%r; an" $)e "e#en"an$ )is $)e%r!, i# necessar!, in %r"er $% "e#ea$$)e cai %r ac$i%n %# $)e 'ain$i##.0.ID.; NATURE O9, NOT A6ENDED OR C/AN4ED B7 PLAINTI99HS REPL7.T)e #ac$ $)a$ 'ain$i##s, in $)eir re'! "a$e"

Se'$e&er , a#$er rei$era$ing $)eir aega$i%n %r cai $)a$ $)e! are

P/ILIPPINE REPORTS ANNOTATEDCa% an" San =%se vs. R%"an$)e %(ners in #ee si'e an" '%ssess%rs in g%%" #ai$) %# $)e 'r%'er$ies in +*es$i%n, 'ra! $)a$ $)e! &e "ecare" $)e %(ners in #eesi'e, )as n%$ c)ange" $)e na$*re %# $)e ac$i%n aege" in $)e c%'ain$ %r a""e" a ne( ca*se %# ac$i%n $)ere$%; &eca*se $)eaega$i%ns in 'ain$i##sH re'! (ere in ans(er $% "e#en"an$sH "e#enses, an" $)e na$*re %# 'ain$i##sH ca*se %# ac$i%n, as se$ #%r$) in)is c%'ain$, (as n%$ an" c%*" n%$ &e aen"e" %r c)ange" &! $)e re'!, ()ic) 'ain$i## )a" $)e rig)$ $% 'resen$ as a a$$er %#c%*rse. A 'ain$i## can n%$, a#$er "e#en"an$Hs ans(er, aen" )is c%'ain$ &! c)anging $)e ca*se %# ac$i%n %r a""ing a ne( %ne(i$)%*$ 'revi%*s! %&$aining eave %# c%*r$ sec$i%n 0, R*e 1F..ID. ; EUITABLE ACTION TO UIET TITLE, W/EN TO BE 9ILED.An e+*i$a&e ac$i%n $% +*ie$ $i$e, in %r"er $% 'reven$)arassen$ &! c%n$in*e" asser$i%n %# a"verse $i$e, %r $% 'r%$ec$ $)e 'ain$i##Hs ega $i$e an" '%ssessi%n, a! &e #ie" in c%*r$s %#e+*i$! an" %*r c%*r$s are as% %# e+*i$!, %n! ()ere n% %$)er ree"! a$ a( e:is$s %r ()ere $)e ega ree"! inv% 1. T)a$ $)e 'ain$i##s an" $)e "e#en"an$s are a %# ega age, 9ii'in% ci$i5ens, an" resi"en$s %# Pia, Lag*na; $)e 'ain$i##s are)*s&an" an" (i#e.0. T)a$ $)e 'ain$i## s'%*ses are $)e %(ners an" $)e '%ssess%rs %# $)e #%%(ing "escri&e" 'arces %# an", $% (i$> . T)a$ 'arce N%. a "escri&e" a&%ve is n%( an *n'an$e" rice an" an" 'arce N%. & "escri&e" in $)e c%'ain$ is a c%c%n*$an", &%$) *n"er $)e '%ssessi%n %# $)e 'ain$i##s.. T)a$ $)e "e#en"an$s, (i$)%*$ an! ega rig)$ ()a$s%ever an" in c%nnivance (i$) eac) %$)er, $)r%*g) $)e *se %# #%rce, s$ea$),

$)rea$s an" in$ii"a$i%n, in$en" %r are in$en"ing $% en$er an" (%r< %r )arves$ ()a$ever e:is$ing #r*i$s a! n%( &e #%*n" in $)ean"s a&%ve-en$i%ne" in vi%a$i%n %# 'ain$i##sH 'r%'rie$ar! rig)$s $)ere$% an" $en"ing $% ren"er $)e *"gen$ in $)is caseine##ec$*a.. T)a$ *ness "e#en"an$s are &arre", res$raine", en%ine", an" 'r%)i&i$e" #r% en$ering %r )arves$ing $)e an"s %r (%r

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(ires &*i$ %n $)e n%r$)(es$ern '%r$i%n %# $)e an" "esigna$e" as 'arce N%. & %# $)is c%'ain$ $% $)e "aage an" 're*"ice %#$)e 'ain$i##s in $)e a%*n$ %# a$ eas$ P0??.W)ere#%re, i$ is res'ec$#*! 'ra!e">a T)a$ $)e acc%'an!ing &%n" in $)e a%*n$ %# P0,??? &e a''r%ve";& T)a$ a (ri$ %# 'reiinar! in*nc$i%n &e iss*e" e:-'ar$e ie"ia$e! res$raining, en%ining an" 'r%)i&i$ing $)e "e#en"an$s, $)eiragen$s, servan$s, re'resen$a$ives, a$$%rne!s, an", %r %$)er 'ers%ns ac$ing #%r an" in $)eir &e)a#, #r% en$ering in, in$er#ering (i$).an"Q%r in an! (ise $a

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c%*r$s %# e+*i$! an" %*r c%*r$s are as% %# e+*i$!, %n! ()ere n% %$)er ree"! a$ a( e:is$s %r ()ere $)e ega ree"! inv%

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Ca% an" San =%se vs. R%"anen$ *"ge (%*" )ave ac$e" in e:cess %# )is *ris"ic$i%n %r (i$) a grave a&*se %# "iscre$i%n in a''%in$ing a receiver $)ere%#.Beca*se reie# &! (a! %# receivers)i' is e+*i$a&e in na$*re, an" a c%*r$ %# e+*i$! (i n%$ %r"inari! a''%in$ a receiver ()ere $)erig)$s %# $)e 'ar$ies "e'en" %n $)e "e$erina$i%n %# a"verse cais %# ega $i$e $% rea 'r%'er$! an" %ne 'ar$! is in '%ssessi%n C. =., '. 0. T)e 'resen$ case #as (i$)in $)is r*e.In $)e case %# 6en"%5a vs. Arean% an" B. "e Arean%, $)is c%*r$ sai">A''%in$en$s %# receivers %# rea es$a$e in cases %# $)is

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[No. 8101. /(e 25, 19]RO!O$O =AR!E, $OR !E ;I!A =AR!E, repree(te* b: M&r'& Cr & ?&r*'&( &* %'tem, &(* /-IA =AR!E,pet't'o(er, +. /-AN ENRI-E, /*?e o) $'rt I(t&(e o) Ne+& E'B&, #IEN;ENI!O SA#A!O, MAG!AENA SA#A!O&(* APOINARIO SA#A!O, repo(*e(t.

1.RECEIVERS; APPOINT6ENT; /%( AND W/EN 6ADE.T)e a''%in$en$ %# a receiver, &eca*se %# i$s "ras$ic na$*re an" %#i$s c)arac$er as a s'ecia ree"! *n"er %*r C%"e %# Civi Pr%ce"*re, is a '%(er ()ic) s)%*" &e e:ercise" (i$) grea$ ca*$i%n.P)ii''ine 6%$%r Ac%)% C%r'. an" Paanca vs. 6a'a, P)i., F1. W)ere $)e e##ec$ %# $)e a''%in$en$ %# a receiver is $% $a

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ang*age $)a$ $)e 'e$i$i%ners are in ')!sica '%ssessi%n %# $)e 'r%'er$! in "is'*$e. B*$ #r% $)e *se %# $)e a"ec$ive ')!sica (eare $% 'res*e $)a$ $)e res'%n"en$s a"i$ $)a$ $)e 7ar"es en%! s%e

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P/ILIPPINE REPORTS ANNOTATED7ar"e vs. Enri+*e5E*geniaHs a(#* )eirs, &esi"es $)e 'ain$i##sH cai #%r en%r%*s "aages. B*$ receivers)i' is n%$ a ega %r 'r%'er s*&s$i$*$e #%ran a''%in$en$ %# a *"icia a"inis$ra$%r %r #%r a reie# $% sec*re $)e 'a!en$ %# "aages. O$)er ree"ies are in"ica$e" $%'r%$ec$ rig)$s &ase" %n $)ese c%nsi"era$i%ns. An" $)e aega$i%n $)a$ $)e 'resen$ "e#en"an$s are n%$ en$i$e" $% s*ccee" $%E*genia 7ar"eHs rig)$s an" in$eres$s in $)e 'r%'er$! in i$iga$i%n is a a$$er (i$) ()ic) $)e 'ain$i##s )ave i$$e $% "%. =*ri"ica!, i$c%ncerns E*genia 7ar"eHs rea$ives, "evisees %r ega$ees a%ne. T)e 'ain$i##s )ave $% re! %n $)e s$reng$) %# $)eir case an" n%$ %n$)e (ea

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[No. 330. A?t , 1906.]ROCA 7 Co., So'e*&* e( Com&(*'t&, p%&'(t')), +. A. S. CROSS$IE!, /*?e o) te Cort o) $'rt I(t&(e o) M&('%&,AN! $RANCISCO ". $IG-ERAS, *e)e(*&(t.

1.LI6ITED PARTNERS/IP.A ii$e" 'ar$ners)i' is n%$ a c%r'%ra$i%n (i$)in $)e eaning %# $)a$ (%r" as i$ is *se" in sec$i%n1F, 'aragra') 1, %# $)e C%"e %# Civi Pr%ce"*re.0.ORDER O9 T/E COURT; RECEIVER; LIEN.An %r"er a''%in$ing a receiver %# $)e 'r%'er$! %# a "e#en"an$ is &e!%n" $)e

*ris"ic$i%n %# $)e c%*r$ an" v%i" ()en $)e c%'ain$ c%n$ains n% aega$i%n $)a$ $)e 'ain$i##

P/ILIPPINE REPORTS ANNOTATEDR%c)a M C%. vs. Cr%ss#ie"is $)e %(ner %# $)e 'r%'er$! #%r ()ic) a receiver is a''%in$e", %r $)a$ )e )as an! in$eres$ $)erein %r ien $)ere%n an" ()en $)e %n!'ra!er %# $)e c%'ain$ is #%r a %ne! *"gen$ agains$ $)e "e#en"an$..ID. ; ID. ; CERTIORARI; APPEAL.n s*c) cases cer$i%rari is $)e 'r%'er ree"!, n%$(i$)s$an"ing $)a$ $)e %r"er a''%in$ing $)ereceiver c%*" &e revie(e" %n an a''ea #r% $)e #ina *"gen$ in $)e ac$i%n.ORI4INAL PETITION #%r a (ri$ %# cer$i%rari.T)e #ac$s are s$a$e" in $)e %'ini%n %# $)e c%*r$.C)ic%$e M 6iran"a, #%r 'ain$i##.C%*"er$ Br%$)ers, #%r "e#en"an$s.WILLARD, =.>

On $)e 0$) %# =an*ar!, 1@?, 9rancisc% T. 9ig*eras, %ne %# $)e "e#en"an$s, c%ence" in $)e C%*r$ %# 9irs$ Ins$ance %# 6aniaan ac$i%n agains$ R%c)a M C%. in ()ic) )e aege", a%ng %$)er $)ings, $)a$ in 1G@G a ii$e" 'ar$ners)i' )a" &een #%re" *n"er$)e nae %# Caran M C%.; $)a$ )e an" $(% %$)ers (ere $)e genera 'ar$ners an" $)a$ $)ere (ere vari%*s s'ecia 'ar$ners; $)a$in acc%r"ance (i$) $)e $ers %# $)e ar$ices %# 'ar$ners)i' an! %ne %# $)e 'ar$ners )a" $)e rig)$ $% (i$)"ra( #r% $)e 'ar$ners)i'*'%n si: %n$)sH n%$ice; $)a$ *'%n giving $)e sai" n%$ice )is 'ar$ici'a$i%n in $)e 'r%#i$s %# $)e 'ar$ners)i' s)%*" cease &*$ $)a$ )isca'i$a s)%*" "ra( in$eres$ a$ $)e ar1 W)en a c%r'%ra$i%n )as &een "iss%ve", %r is ins%ven$, %r is in iinen$ "anger %# ins%venc!, %r )as #%r#ei$e" i$s c%r'%ra$erig)$s.0 W)ere i$ is a"e $% a''ear &! $)e c%'ain$ %r ans(er, an" &! s*c) %$)er 'r%%# as $)e *"ge a! re+*ire, $)a$ $)e 'ar$!a

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$% g*ar" an" 'reserve i$. In an ac$i%n &! $)e %r$gagee #%r $)e #%rec%s*re %# a %r$gage ()ere i$ a''ears $)a$ $)e 'r%'er$! is in "anger %# &eing(as$e" %r a$eria! in*re" an" $)a$ i$s va*e is 'r%&a&! ins*##icien$ $% "isc)arge $)e %r$gage "e&$. W)enever in %$)er cases i$ s)a &e a"e $% a''ear $% $)e c%*r$ $)a$ $)e a''%in$en$ %# a receiver is $)e %s$ c%nvenien$ an"#easi&e eans %# 'reserving an" a"inis$ering $)e 'r%'er$! ()ic) is $)e s*&ec$ %# i$iga$i%n "*ring $)e 'en"enc! %# $)e ac$i%n.T)e case a$ &ar "%es n%$ #a (i$)in an! %# $)e 'r%visi%ns %# $)is sec$i%n. T)ere is n% aega$i%n in $)e c%'ain$, as )as &een&e#%re s$a$e", $)a$ $)e 'ain$i## is $)e %(ner %# an! %# $)e 'r%'er$! %# R%c)a M C%., n%r is $)ere an! aega$i%n $)a$ )e )as an! ien$)ere%n, n%r are $)ere an! #ac$s aege" in $)e c%'ain$ #r% ()ic) i$ c%*" &e@

VOL. , AU4UST F, 1@?

@R%c)a M C%. vs. Cr%ss#ie"in#erre" $)a$ )e (as $)e %(ner %# s*c) 'r%'er$! %r )a" an! ien $)ere%n. On $)e c%n$rar!, #r% $)e #ac$s $)a$ are aege" in $)ec%'ain$ i$ (%*" see $)a$ )is se'ara$i%n #r% $)e 'ar$ners)i' %# Caran M C%. e#$ $)a$ 'ar$ners)i' as a g%ing c%ncern an" "i"n%$ "iss%ve i$. T)e e##ec$ %# $)e 'r%visi%ns %# $)e ar$ices %# 'ar$ners)i' ()ic) are re#erre" $% in $)e c%'ain$ is $)a$ a#$er $)e(i$)"ra(a %# an! 'ar$ner $)e reaining 'ar$ners &ecae $)e %(ners %# a $)e asse$s %# $)e 'ar$ners)i' an" )e &ecae a generacre"i$%r %# $)e 'ar$ners)i'.

A#$er $)is ac$i%n )a" &een c%ence" in $)is c%*r$, an" a#$er a 'reiinar! in*nc$i%n )a" &een iss*e" as a#%resai", 9ig*erasa''ie" $% $)e c%*r$ &e%( #%r eave $% aen" )is c%'ain$ in $)e ac$i%n $)erein 'en"ing an" s*c) eave (as gran$e". T)isaen"en$, )aving &een a"e a#$er $)e ac$i%n (as c%ence" in $)is c%*r$ an" a#$er a receiver (as a''%in$e", can n%$ &ec%nsi"ere".In %ne %# $)e %r"ers a"e &! $)e c%*r$ &e%( rea$ing $% $)e receiver, i$s a*$)%ri$! #%r a

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[No. 8391. No+ember 29, 1950]AG-S"INA PARANE"E, PERINO ;IAR, PE!RO ERNAN!E, COME!ES !AA"ON, ;AERIANO MIANO,$EISIANA NA;ARRO, &(* E!-AR!O #. OCAMPO, pet't'o(er, +. #IEN;ENI!O A. "AN, /*?e, Cort o) $'rt I(t&(eo) R'&%, R'&% C't: #r&(, $EIF ACARAS, $R-C"-OSA ;AS-E, MAFIMA ;AS-E, NOR#ER"A ;AS-E &(*"E PRO;INCIA SERI$$ O$ RIA, repo(*e(tF@

VOL. GF, NOVE6BER 0@, 1@?F@

1.PRO/IBITION; OWNERS/IP O9 REAL PROPERT7 IN LITI4ATION; ORDER REUIRIN4 ACCOUNTIN4 AND DEPOSIT O9

PROCEEDS O9 /ARVEST WIT/ CLERJ O9 COURT, I6PROPER.A $ria c%*r$ iss*ing an %r"er re+*iring $)e 'ar$! in'%ssessi%n %# $)e 'r%'er$! ()%se %(ners)i' is in i$iga$i%n, $% a

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G0P/ILIPPINE REPORTS ANNOTATED4% B%n C)ia$ vs. 4%n5aesn* an" v%i" an" en%ins )i #r% en#%rcing i$ as 'ra!e" #%r in $)e 'e$i$i%n.Pars, 9eria, Pa&%, Beng5%n, Pa"ia, T*as%n, 6%n$ea!%r, Re!es, an" =*g%, ==., c%nc*r.Pe$i$i%n gran$e". KParane$e vs. Tan, GF P)i. FG1@?

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G.R. No. 61504. M&r 1, 1999.I

T/E RESPONDENT COURT ERRED IN PRACTICALL7 AND IN E99ECT RENDERIN4 =UD46ENT ON T/E 6ERITSA4AINST T/E /EREIN PETITIONER B7 ORDERIN4 T/E RETURN O9

G CA Decisi%n, '. 1?; R%%, '. 1F1.G@

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Ci$i&an

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%# $)e Revise" R*es %# C%*r$, 'r%vi"es>SEC. 0. De#enses an" %&ec$i%ns n%$ 'ea"e" "eee" (aive".De#enses an" %&ec$i%ns n%$ 'ea"e" ei$)er in a %$i%n $%"isiss %r in $)e ans(er are "eee" (aive"; e:ce'$ $)e #ai*re $% s$a$e a ca*se %# ac$i%n ()ic) a! &e aege" in a a$er'ea"ing, : : :.T)is R*e )as &een revise" an" aen"e", as #%%(s>SEC. 1. De#enses an" %&ec$i%ns n%$ 'ea"e".De#enses an" %&ec$i%ns n%$ 'ea"e" in a %$i%n $% "isiss %r in $)e ans(er are"eee" (aive". /%(ever, ()en i$ a''ears #r% $)e 'ea"ings %r $)e evi"ence %n rec%r" $)a$ $)e c%*r$ )as n% *ris"ic$i%n %ver $)es*&ec$ a$$er, $)a$ $)ere is an%$)er ac$i%n 'en"ing &e$(een $)e sae 'ar$ies #%r $)e sae ca*se, %r $)a$ $)e ac$i%n is &arre" &! a'ri%r *"gen$ %r &! s$a$*$e %# ii$a$i%ns, $)e c%*r$ s)a "isiss $)e cai.T)*s, a$)%*g) res'%n"en$s "e#ense %# ac< %# a##i"avi$ %# eri$ is eri$%ri%*s, 'r%ce"*ra!, s*c) a "e#ense is n% %nger avaia&e#%r #ai*re $% 'ea" $)e sae in $)e Ans(er as re+*ire" &! $)e %ni&*s %$i%n r*e.

IIIPe$i$i%ner as% #a*$s $)e C%*r$ %# A''eas #%r #in"ing $)a$ $)e &%n" '%s$e" &! $)e 'e$i$i%ner is +*es$i%na&e an"Q%r ins*##icien$. I$ isaverre" $)a$, in c%'iance (i$) Sec$i%n 0, R*e ? re+*iring $)e re'evin 'ain$i## $% '%s$ a &%n" in "%*&e $)e va*e %# $)e'r%'er$ies inv%ve", i$ #ie" a &%n" in $)e a%*n$ %# P??,???.?? ()ic) is $(ice $)e a%*n$ %# P0??,???.?? "ecare" in i$sc%'ain$.T)e C%*r$ rei$era$es i$s #in"ings %n $)e sec%n" assignen$ %# err%rs, 'ar$ic*ar! %n $)e iss*e %# $)e ac$*a va*e %# s*&ec$'r%'er$ies as agains$ $)eir 'r%&a&e va*e. Priva$e res'%n"en$, a$ $)e %nse$, )as '*$ in$% iss*e $)e va*e %# $)e sai"@

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&%n" e:ec*$e" $% $)e 'ain$i## in "%*&e $)e va*e %# $)e 'r%'er$! as s$a$e" in $)e 'ain$i##s a##i"avi$ (i$)in $)e 'eri%" s'eci#ie" inSec$i%ns an" .

A$erna$ive!, $)e "e#en"an$ a! %&ec$ $% $)e s*##icienc! %# $)e 'ain$i##s &%n", %r %# $)e s*re$! %r s*re$ies $)ere%n; &*$ i# )e "%ess%, )e cann%$ re+*ire $)e re$*rn %# $)e 'r%'er$! &! '%s$ing a c%*n$er-&%n" '*rs*an$ $% Sec$i%ns an" .1GIn $)e case *n"er c%nsi"era$i%n, $)e 'riva$e res'%n"en$ "i" n%$ %'$ $% ca*se re"eiver! %# $)e 'r%'er$ies $% )i &! #iing a c%*n$er-&%n" 'recise! &eca*se )e %&ec$e" $% $)e s*##icienc! %# $)e &%n" '%s$e" &! 'ain$i##. T)ere#%re, )e nee" n%$ #ie a c%*n$er-&%n" %rre"eiver! &%n". W)en s*c) %&ec$i%n (as n%$ given "*e c%*rse in $)e c%*r$ &e%(()en, ins$ea" %# re+*iring $)e 'ain$i## $% '%s$a ne( &%n", $)e c%*r$ a''r%ve" $)e &%n" in $)e a%*n$ %# P??,???.??, caie" &! res'%n"en$ $% &e ins*##icien$, an" %r"ere" $)esei5*re %# $)e 'r%'er$iesrec%*rse $% a 'e$i$i%n #%r cer$i%rari &e#%re $)e C%*r$ %# A''eas assaiing s*c) %r"er is 'r%'er *n"er $)ecirc*s$ances.

1 La T%n"e2a Dis$iers, Inc. vs. C%*r$ %# A''eas, 0?@ SCRA .1F La T%n"e2a, i".; Ong vs. In$ere"ia$e A''ea$e C%*r$, 0?1 SCRA ; C)an vs. Vian*eva, e$c., e$ a., A'ri ?, 1@0; Casean" Nan$5 vs. =*g%, e$ a., FF P)i. 1F; Bac)rac) 6%$%r C%., Inc. vs. A&er$, ? P)i. ?G.1G La T%n"e2a, s*'ra.@G

@GSUPRE6E COURT REPORTS ANNOTATEDCi$i&anIn case $)e 6ORT4A4EE ins$i$*$es 'r%cee"ings, *"icia! %r %$)er(ise, #%r $)e #%rec%s*re %# $)is C)a$$e 6%r$gage, %r $%en#%rce an! %# i$s rig)$s )ere*n"er, $)e 6ORT4A4EE s)a &e en$i$e" as a a$$er %# rig)$ $% $)e a''%in$en$ %# a receiver,(i$)%*$ &%n", %# $)e %r$gage" 'r%'er$ies an" %# s*c) %$)er 'r%'er$ies, rea %r 'ers%na, cais an" rig)$s %# $)e 6ORT4A4ORas s)a &e necessar! %r 'r%'er $% ena&e $)e sai" receiver $% 'r%'er! c%n$r% an" "is'%se %# $)e %r$gage" 'r%'er$ies.1@T)e %r"er %# $)e $ria c%*r$ "a$e" 6arc) 0, 1@F 'r%vi"e", a%ng %$)ers, $)a$ $)e 'r%'er$ies s)a &e *n"er %in$ anageen$ #%ra 'eri%" %# $en "a!s, a#$er ()ic) 'eri%" $)e &an

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/%(ever, $)e C%*r$ %# A''eas (as rig)$ in #in"ing a "e#ec$ in s*c) ass*'$i%n %# receivers)i' in $)a$ $)e re+*ireen$ %# $a

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[No. 253. A?t 1, 1926]SE#AS"IANA MAR"INE E" A., p%&'(t')) &(* &ppe%%ee, +. CEMENCIA GRAO E" A., *e)e(*&(t &(* &ppe%%eeES"ANISAO RE=ES, ree'+er &(* &ppe%%&(t.

RECEIVERS; ASSERTION O9 ADVERSE INTEREST OVER RECEIVERS/IP PROPERT7 B7 RECEIVER; RE6OVAL O9RECEIVER.A receiver ()% asser$s %(ners)i' %ver $)e 'r%'er$! in )is )an"s as receiver an" re#*ses $% s*&i$ an! acc%*n$ %#$)e #inancia s$a$*s %# sai" 'r%'er$! s)%*" &e re%ve" &! $)e c%*r$ )aving c)arge %# $)e receivers)i'.

APPEAL #r% an %r"er %# $)e C%*r$ %# 9irs$ Ins$ance %# Lag*na. Pare"es, =.T)e #ac$s are s$a$e" in $)e %'ini%n %# $)e c%*r$.Ca*s, Dega"% M Rec$% an" R. Ne'%*cen% #%r a''ean$.Se&as$ian 4. Paa$a$ #%r 'ain$i##s an" a''eees.

9%renci% 6ana% #%r "e#en"an$s -an" a''eees.01

VOL. @, AU4UST 1, 1@0016ar$ine5 vs. 4ra2%STREET, =.>

T)is a''ea is 'r%sec*$e" &! Es$anisa% Re!es #r% an %r"er %# =*"ge Isi"r% Pare"es "a$e" Oc$%&er @, 1@0, "iss%ving $)ereceivers)i' %ver $)e 'r%'er$! in i$iga$i%n an" "irec$ing $)a$ sai" 'r%'er$!, $)ere$%# %re in $)e )an"s %# $)e a''ean$ as receiver,s)%*" &e "eivere" $% $)e 'ar$ies in in$eres$. T)e #ac$s a''earing %# rec%r" are v%*in%*s, &*$ $)e rec%r" )as area"! &een&e#%re $)e c%*r$ *'%n $)ree 'ri%r a''eas. In $)is "ecisi%n $)ere#%re %n! s*c) #ac$s (i &e "isc*sse" as are a''*r$enan$ $% $)e'%in$, %r '%in$s, a$ iss*e.I$ a''ears $)a$ $)e a''ean$ (as a''%in$e" receiver an" en$ere" in$% '%ssessi%n %# $)e 'r%'er$! in c%n$r%vers! in =an*ar!, 1@01.D*ring $)e 'eri%" $)a$ ie"ia$e! #%%(e" $)e 'r%'er$! in )is )an"s "i" n%$ 'r%"*ce en%*g) inc%e $% ee$ $)e e:'enses an"'a! $)e s*s "*e $)e )%"er %# # irs$ %r$gage, E /%gar 9ii'in%. 9%r $)is reas%n $)e receiver rec%en"e" $% $)e c%*r$ $)a$ $)e'r%'er$! &e s%"; an" %n =an*ar! 0, 1@00, =*"ge Pare"es a"e an %r"er a*$)%ri5ing $)e receiver $% se $)e an" a$ an *'se$'rice %# PG,???, s*&ec$ $% $)e a''r%va %# $)e c%*r$, $)e 'r%cee"s %# $)e sae $% &e "e'%si$e" in $)e cer

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)%(ever, (as serve" *'%n $)e 6ar$ine5 )eirs, (i$) $)e res*$ $)a$ ()en $)e &i %# e:ce'$i%ns cae $% $)is c%*r$, a %$i%n (asa"e &! $)e 6ar$ine5 )eirs $% )ave $)e a''ea "isisse". U'%n $)is $)e a$$%rne!s #%r Re!es cae in$% c%*r$ an" re'ie" &!"e%ns$ra$ing $)a$ $)e a''ea $)en &eing 'r%sec*$e" &! Re!es inv%ve" %n! $)e $)ree 'arces %# an" ()ic) )a" in a 'revi%*s"ecisi%n &een "ecare" &! $)is c%*r$ $% &e%ng $% Ceencia 4ra2%. U'%n $)is ass*rance $)e c%*r$ "enie" $)e %$i%n %# $)e6ar$ine5 )eirs $% "isiss $)e a''ea, i$ $)*s a''earing $)a$ sai" 6ar$ine5 )eirs (ere n%$ in$eres$e" in $)e a$$er in c%n$r%vers! s%#ar as )ere inv%ve". See "ecisi%n %# $)is c%*r$ 'r%*-01G

01GP/ILIPPINE REPORTS ANNOTATED6ar$ine5 vs. 4ra2%

ga$e" 6arc) 0, 1@0, in 6ar$ine5 vs. Re!es, 4. R. N%. 011G. 1 I$ (i &e seen $)ere#%re $)a$ $)e %r"er %# =*"ge Pare"es %# =*!0, 1@0, n*i#!ing an" res%ving $)e sae %# $)e receivers)i' 'r%'er$! $% Re!es, (as never e##ec$*a! a''eae" #r%, an" $)ec%nc*si%n irresis$i&! #%%(s $)a$ $)e %r"er %# =*"ge Pare"es *'%n $)e '%in$ en$i%ne" )as ac+*ire" $)e c)arac$er %# a #ina an"irre'eaa&e %r"er. In %*r "ecisi%n as$ a&%ve re#erre" $% $)e #%%(ing 'aragra') (as inser$e" near $)e c%se %# $)e %'ini%n>In %r"er $% c%n$ri&*$e s%e$)ing $% cari#! a si$*a$i%n ()ic) )as $en"e" $% &ec%e c%'e:, (e (i sa! $)a$ $)e e##ec$ %# $)ea''eae" "ecisi%n (as $% "ecare $)a$ Es$anisa% Re!es )a" n%$ c%'ie" (i$) $)e c%n"i$i%ns re+*isi$e $% ena&e )i $% &ec%e a'*rc)aser %# $)e 'r%'er$! %# ()ic) )e is receiver, an" $)is )as $)e inevi$a&e e##ec$ %# eiina$ing )i in $)e c)arac$er %# '*rc)aser.I$ (i, $)ere#%re, &e $)e "*$! %# $)e %(er c%*r$ $% "ea (i$) )i )erea#$er e:c*sive! in $)e c)arac$er %# receiver an" $% )%" )ires'%nsi&e in $)a$ c)arac$er %n!.T)e a$$%rne!s #%r Re!es ie"ia$e! 'r%$es$e" agains$ $)is 'aragra') an" asT)ere#%re, $)e %$i%n is gran$e" an" $)e a''%in$en$ %# Es$anisa% Re!es as receiver is rev%

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[No. 9031.>A?t 24, 19]/oe P%&to( &(* Rom&( C&t'%%o, pet't'o(er, +. o(. C%&*'o S&(*o+&%, '( ' &p&'t: & /*?e, Cort o) $'rt I(t&(eo) &?(&, &(* I(e M&'%om, repo(*e(t.

1.Cer$i%rari an" 6an"a*s; Receivers, Disc)arge %#. T)e 'r%'er$! in i$iga$i%n an" *n"er receivers)i' &e%ngs $% $)ein$es$a$ees$a$e %# $)e "ecease" S.6., "ecease" (i#e %# $)e 'e$i$i%ner R.C. T)e "e#en"an$ A.C., ()% is n%$ an )eir %# sai""ecease", "%es n%$ cai %(ners)i' %# sai" 'r%'er$! an" )as signe" )is c%n#%ri$! $% $)e "isc)arge %# $)e receiver. An" $)e )eirs%# sai" "ecease" )ave agree" *'%n $)e 'ar$i$i%n %# sai" 'r%'er$! (i$) $)e a''r%va %# $)e 'r%&a$e c%*r$. I$ sees cear, $)ere#%re,$)a$ $)e "ecara$i%n %# $)e res'%n"en$ *"ge $)a$ $)ere (as n% %nger an! necessi$! #%r $)e c%n$in*a$i%n %# $)e receivers)i' (as(e #%*n"e". In an! even$, i$ cann%$ &e sai" $)a$ $)e res'%n"en$ *"ge e:cee"e" )is *ris"ic$i%n %r a&*se" )is "iscre$i%n inaT)is is an %rigina 'e$i$i%n #%r cer$i%rari an" an"a*s $% ann* an %r"er iss*e" &! $)e res'%n"en$ *"ge ()ere&! $)e receivera''%in$e" in civi case N%. FG %# $)e C%*r$ %# 9irs$ Ins$ance %# Lag*na, en$i$e" Ines 6ai% vs. An$%nin% Cas$i% an" R%anCas$i%, (as "isc)arge", an" $% c%'e $)e res'%n"en$ *"ge $% a''r%ve $)e a''ea %# sai" receiver #r% sai" %r"er.I$ a''ears $)a$ sai" civi case (as ins$i$*$e" &! Ines 6ai%, %ne %# $)e )eirs %# $)e "ecease" Servan"a 6ai%, $% ann* $)e sae%# cer$ain 'arces %# an" a"e &! $)e s'%*ses R%an Cas$i% an" Servan"a 6ai% 'revi%*s $% $)e "ea$) %# $)e a$$er in #av%r%# An$%nin% Cas$i%, a &r%$)er %# R%an. A#$er $)e "ea$) %# Servan"a 6ai%, )er )*s&an" R%an. Cas$i% (as a''%in$e"a"inis$ra$%r %# $)e es$a$e e#$ &! )er. T)e )erein 'e$i$i%ner =%se Pa$%n (as a''%in$e" receiver %# $)e 'r%'er$! in i$iga$i%n in sai"civi case N%. FG a$ $)e ins$ance %# $)e 'ain$i## n%( res'%n"en$ Ines 6ai%.I$ (as as% Ines 6ai% ()%, $)r%*g) Icier a$$%rne!, %ve" $)e c%*r$ %n N%ve&er 11, 1@0, $% "isc)arge $)e receiver %n $)egr%*n" $)a$ $)ere (as n% %re necessi$! #%r $)e c%n$in*a$i%n %# $)e receivers)i' inas*c) as $)e "e#en"an$ An$%nin% Cas$i% )a"ren%*nce" )is cai $% sai" 'r%'er$! in a s$i'*a$i%n %# #ac$s s*&i$$e" $% $)e c%*r$ %n N%ve&erF VOL. F, AU4UST 0G, 1@ FPa$%n an" Cas$i% vs. San"%va

0, 1@?, an" $)e )eirs %# $)e "ecease" Servan"a 6ai%, inc*"ing $)e a"inis$ra$%r R%an Cas$i%, )a" s*&i$$e" a 'r%ec$ %#'ar$i$i%n in $)e in$es$a$e 'r%cee"ings %# $)e "ecease" Servan"a 6ai%, case N%. 1G %# sai" c%*r$, ()ic) 'r%ec$%# 'ar$i$i%n )a"&een a''r%ve" &! $)e c%*r$. U'%n s*c) aega$i%ns, ()ic) $)e c%*r$ #%*n" $% &e $r*e, $)e res'%n"en$ *"ge gran$e" $)e %$i%n,"isc)arging $)e receiver an" %r"ering )i $% "eiver $)e 'r%'er$ies *n"er receivers)i' $% $)e 'ers%ns en$i$e" $% receive $)e saein acc%r"ance (i$) $)e 'r%ec$ %# 'ar$i$i%n a#%reen$i%ne".T)e receiver =%se Pa$%n #ie" a %$i%n $% se$ asi"e sai" %r"er %n $)e gr%*n"s 1 $)a$ )e )a" n%$ &een n%$i#ie" %# $)e %$i%n *'%n()ic) $)e sae (as iss*e"; 0 $)a$ $)e case in ()ic) )e (as a''%in$e" receiver (as s$i 'en"ing "ecisi%n &! =*"ge Pr%ces%Se&as$ian; $)a$ in $)e even$ An$%nin% Cas$i% (ins $)e case, $)e receiver )as $% "eiver $% )i $)e 'r%'er$ies, $)ere&! ren"ering$)e 'r%ec$ %# 'ar$i$i%n *seess an" %# n% va*e; an" $)a$ irreg*ari$ies (ere c%i$$e" &! A$$%rne! Ac*#ia #%r $)e 'ain$i## an" $)e)eirs %# Servan"a 6ai% regar"ing $)e "is'%si$i%n %# $)e 'r%'er$ies in +*es$i%n a#$er $)e a''r%va %# $)e 'r%ec$ %# 'ar$i$i%n. In ae%ran"* s*&i$$e" &! $)e a$$%rne! #%r $)e receiver =%se Pa$%n in s*''%r$ %# sai" %$i%n, sai" a$$%rne!, ()% as% re'resen$s$)e "e#en"an$-a"inis$ra$%r R%an Cas$i%, sai" $)a$ $)e a$$er %ins $)e receiver in sai" %$i%n an" a

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8/13/2019 Rule 59. Cases

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VOL. ?, OCTOBER 1, 0??1Oren"ain vs. B9 /%es, Inc.Sae; Sae; One %# $)e genera '%(ers %# a receiver *n"er R*e @, Sec$i%n %# $)e R*es %# C%*r$ is $)e '%(er $% &ring an""e#en" s*i$s in s*c) ca'aci$!.Pe$i$i%ner arg*es $)a$ $)e C%i$$ee %# Receivers s)%*" )ave s%*g)$ 'ri%r cearance #r% $)eSEC &e#%re ins$i$*$ing $)e ac$i%n #%r rec%nve!ance &e#%re $)e RTC, &eca*se i$ "%es n%$ )ave $)e ega ca'aci$! $% s*e. T)is isinc%rrec$. One %# $)e genera '%(ers %# a receiver *n"er R*e @, Sec$i%n %# $)e R*es %# C%*r$ is $)e '%(er $% &ring an" "e#en"s*i$s in s*c) ca'aci$!.

Ac$i%ns; Receivers)i'; T)e reas%n &e)in" R*e @, Sec$i%n , ()ic) re+*ires eave %# c%*r$ #%r a s*i$s &! %r agains$ $)e 'resen$receiver, is $% #%res$a an! *n"*e in$er#erence (i$) $)e receivers 'er#%rance %# "*$ies $)r%*g) i'r%vi"en$ s*i$s.T)e r*e $a

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Rec%r"s s)%( $)a$ res'%n"en$ B9 /%es )a" $% avai i$se# %# #inancia assis$ance #r% vari%*s s%*rces $% ena&e i$ $% &*!

1 CA R%%, ''. M 00F.

SUPRE6E COURT REPORTS ANNOTATEDOren"ain vs. B9 /%es, Inc.'r%'er$ies an" c%nver$ $)e in$% resi"en$ia s*&"ivisi%ns. T)is res*$e" in i$s inc*rring ia&ii$ies a%*n$ing $% P)P1,0,G?,?G.00 as %# =*! 1, 1@G. On $)e %$)er )an", "*ring i$s &*siness %'era$i%ns, i$ (as a&e $% ac+*ire 'r%'er$ies an"

asse$s (%r$) P)P 0,G0,G,G.G1 as %# =*! 1, 1@G, ()ic), i# i+*i"a$e", (ere %re $)an en%*g) $% 'a! a i$s cre"i$%rs.Des'i$e i$s s%ven$ s$a$*s, res'%n"en$ #ie" a Pe$i$i%n #%r Re)a&ii$a$i%n an" #%r Decara$i%n in a S$a$e %# S*s'ensi%n %# Pa!en$s*n"er Sec$i%n %# PD N%. 1FG &e#%re $)e Sec*ri$ies an" E:c)ange C%issi%n SEC &eca*se %# $)e #%%(ing>a $)e 're"a$%r! ac$s %# $)e Cen$ra Ban< %# $r!ing $% $a1. A$$!. 9%renci% Oren"ain as C)airan0. Re'resen$a$ive %# B.9. /%es, Inc.e&er. Re'resen$a$ive %# /%e 9inancing C%issi%ne&er. T(% 0 re'resen$a$ives #r% $)e a%r cre"i$%rse&ers: : : :

Acc%r"ing!, (i$) $)e crea$i%n %# $)e 6anageen$ C%i$$ee, a ac$i%ns #%r cais agains$ B.9. /%es, Inc. 'en"ing &e#%re $)ec%*r$, $ri&*na, &%ar" %r &%"! are )ere&! "eee" s*s'en"e".T)erea#$er, %n 9e&r*ar! 0, 1@GG, $)e SEC %r"ere" $)e a''%in$en$ %# a re)a&ii$a$i%n receiver, 9BO 6anageen$ Ne$(%r

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G Rec%r"s, ''. 1-1.@ I"., a$ '. 1.1? Rec%r"s, ''. 1?G-1?.11 Rec%r"s, ''. 11-10.F

VOL. ?, OCTOBER 1, 0??FOren"ain vs. B9 /%es, Inc.

LS9SIPI. B9 /%es as% s$a$e" $)a$ $)e $%$a assesse" va*e %# $)e 'r%'er$! (as a''r%:ia$e! P)P G?0,?.??. /ence, i$ 'ra!e"in $)e C%'ain$ $)a$ LS9SIPI rec%nve! $)e "is'*$e" 'r%'er$! %r, i# rec%nve!ance (as n% %nger #easi&e, 'a! $)e 'resen$ va*e %#$)e 'r%'er$!.10On 6arc) 01, 1@@, $)e LS9SIPI #ie" i$s Ans(er (i$) C%'*s%r! C%*n$ercai,1 s$a$ing, a%ng %$)ers, $)a$ 1 $)e C%'ain$s$a$e" n% ca*se %# ac$i%n since $)ere (as a vai" sae (i$) s*##icien$ c%nsi"era$i%n, an" $)ere (as n% #ra*"; 0 i$ (as &arre" &! a'ri%r *"gen$ %# a $ri&*na (i$) s*##icien$ *ris"ic$i%n %ver $)e a$$er, an" B9 /%es (as ia&e #%r #%r* s)%''ing; an" B9/%es c%*" n%$ +*es$i%n i$s %(n ac$s &! (a! %# es$%''e.On =*ne 1, 1@@, 9%renci% B. Oren"ain #ie" a 6%$i%n $% Disiss s$a$ing $)a$ 1 $)e RTC )a" n% *ris"ic$i%n %ver $)erec%nve!ance s*i$; 0 $)e C%'ain$ (as &arre" &! $)e #inai$! %# $)e N%ve&er F, 1@@ Oni&*s Or"er %# $)e SEC )earing'ane; an" B9 /%es, ac$ing $)r%*g) i$s C%i$$ee %# Receivers, )a" nei$)er $)e in$eres$ n%r $)e 'ers%nai$! $% 'r%sec*$e $)esai" ac$i%n, in $)e a&sence %# SECs cear an" ac$*a a*$)%ri5a$i%n #%r $)e ins$i$*$i%n %# $)e sai" s*i$.1On =*! 1, 1@@, B9 /%es #ie" i$s O''%si$i%n1 $% 'e$i$i%ners 6%$i%n $% Disiss, aeging $)a$ $)e case (as (i$)in $)ee:c*sive *ris"ic$i%n %# $)e RTC, n%$ $)e SEC, c%nsi"ering $)a$ $)e case (as an %r"inar! rec%nve!ance s*i$. Li

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Acc%r"ing $% $)e CA>A$)%*g) $)is C%*r$ is n%$ %&ivi%*s $% $)e #ac$ $)a$ $)e SEC en &anc in a Decisi%n "a$e" 6a! G, 1@@F, a##ire" $)e "enia %# $)e

00 R%%, ''. 1?-11.0 T)e Decisi%n (as 'enne" &! Ass%cia$e =*s$ice 6erce"es 4%5%-Da"%e, (i$) Ass%cia$e =*s$ices 9erin A. 6ar$in, =r. an"6ar$in S. Viaraa, =r. c%nc*rring, R%%, ''. 1-.?

?SUPRE6E COURT REPORTS ANNOTATED

Oren"ain vs. B9 /%es, Inc.in$erven$i%n #ie" &! R%"rig*e5, s$i $)e sai" %r"er "i" n%$ g% in$% $)e eri$s %# $)e in$erven$i%n &*$ ere! re#*se" $% give "*erec%gni$i%n $% $)e in$erven$i%n as i$ (as aege"! *n$ie!. T)ere#%re, $)e c%n$en$i%n %# 'e$i$i%ner $)a$ $)e 'rinci'e %# res *"ica$ais a''ica&e in $)e case a$ &ar "%es n%$ )%" (a$er.0T)e CA *$ia$e! ren"ere" i$s *"gen$ in $)is (ise>W/ERE9ORE, 'reises c%nsi"ere", $)e ins$an$ 'e$i$i%n is DIS6ISSED #%r #ai*re $% cear! s)%( grave a&*se %# "iscre$i%n an"$)e assaie" %r"ers "a$e" Dece&er , 1@@ an" A'ri 00, 1@@G, are )ere&! A99IR6ED in $%$% (i$)%*$ c%s$s $% 'e$i$i%ner.0/ence, $)is 'e$i$i%n is &e#%re *s.T)e C%*r$s R*ingPe$i$i%ner avers $)a$ $)e CA erre" in )%"ing $)a$ 1 $)e c%'ain$ a +*% is a si'e rec%nve!ance s*i$ an" )ence, can &e )ear"an" $rie" &! $)e c%*r$ a +*%; 0 res *"ica$a is ina''ica&e $% $)e c%'ain$ a +*%; an" $)e C%i$$ee %# Receivers a!ins$i$*$e an ac$i%n agains$ a #%rer receiver (i$)%*$ 'ri%r SEC a''r%va.0T)e 'e$i$i%n is n%$ eri$%ri%*s.

Ac$i%n #%r Rec%nven!ance in $)e RTC D%es N%$ Inv%veIn$ra-C%r'%ra$e Dis'*$e

T)e iss*e cen$ra $% $)is 'e$i$i%n is> ()ic) )as *ris"ic$i%n %ver $)e ac$i%n #%r rec%nve!ance$)e RTC %r SEC.Pe$i$i%ner Oren"ain arg*es $)a$ i$ is $)e SEC $)a$ )as *ris"ic$i%n &! vir$*e %# Presi"en$ia Decree N%. @?0-A since B9 /%es s*i$(as ins$i$*$e" agains$ )i as i$s #%rer receiver. /e as% avers $)a$ B9 /%es aega$i%ns (ere n%$)ing %re $)an 'r%$es$a$i%nsagains$ $)e #%rer receiver ()% en$ere"

0 I"., a$ '. .0 I"., a$ '. .0 R%%, ''. 1-1F.1

VOL. ?, OCTOBER 1, 0??1Oren"ain vs. B9 /%es, Inc.in$% a $ransac$i%n "*ring B9 /%es regie %# re)a&ii$a$i%n; an" $)a$ $)e assaie" $ransac$i%n (as c%ns*a$e" a$ $)e $ie $)eSEC )a" 'ace" B9 /%es *n"er re)a&ii$a$i%n. T)ere#%re, acc%r"ing $% 'e$i$i%ner, $)e SEC, ()ic) a''%in$e" $)e re)a&ii$a$i%nreceiver, )as $)e s%e '%(er $% "eci"e $)e iss*e as $% ()e$)er 'e$i$i%ner ac$e" (i$)in $)e sc%'e %# $)e ves$e" a*$)%ri$!.Pe$i$i%ner as% cais $)a$ $)e res%*$i%n %# $)e ins$an$ c%n$r%vers! "e'en"s %n $)e ra$i#ica$i%n &! $)e SEC %# $)e ac$s %# i$s agen$,$)e receiver. As%, )e asser$s $)a$ #%r $)e RTC $% insis$ %n )earing an" "eci"ing $)e case &e%( is $% "is%"ge $)e a''%in$ing &%"!#r% revie(ing, ra$i#!ing, c%n#iring, %r %verr*ing $)e ac$s %# i$s a''%in$ee; an" s*c) (%*" c%ns$i$*$e *n"*e in$er#erence %n $)e

*ris"ic$i%n %# $)e SEC &! a c%*r$ %# e+*a *ris"ic$i%n. 9*r$)er, 'e$i$i%ner cais $)a$ $)e +*es$i%ns %# ()e$)er $)e receiver %# ac%'an! *n"erg%ing re)a&ii$a$i%n ac$e" (i$)in $)e sc%'e %# )is a*$)%ri$!, an" ()e$)er a $ransac$i%n c%ns*a$e" "*ring $)ere)a&ii$a$i%n 'r%cee"ings is i'erissi&e, are a$$ers n%$ (i$)in $)e 'r%vince %# a reg*ar c%*r$ ac$ing %n an %r"inar!rec%nve!ance s*i$. Pe$i$i%ner avers $)a$ $)e *n"is'*$e" #ac$ is $)a$ a$ $)e $ie %# $)e sai" $ransac$i%n, res'%n"en$ (as %'era$ing

*n"er re)a&ii$a$i%n ()ere&! receivers)i' 'aces a a$$ers arising #r%, inci"en$a, %r c%nnec$e" (i$) $)e i'een$a$i%n %# sai"re)a&ii$a$i%n 'r%cee"ings &e!%n" $)e *ris"ic$i%n %# reg*ar c%*r$s. In a""i$i%n, 'e$i$i%ner avers $)a$ $)e 'r%'er$! in +*es$i%n is %ne%# $)e an! 'r%'er$ies ()ic) #%re" 'ar$ %# a '%% %# asse$s 'ace" *n"er receivers)i' an" $)a$ )e (as $)e C)airan %# $)e 9BO6anageen$, Inc.$)e SEC-a''%in$e" Re)a&ii$a$i%n Receiver a$ $)e $ie %# $)e $ransac$i%n.WE )%" OT/ERWISE.In S'ee" Dis$ri&*$ing C%r'. v. CA, (e )e" $)a$>=*ris"ic$i%n %ver $)e s*&ec$ a$$er is c%n#erre" &! a(. T)e na$*re %# an ac$i%n, as (e as ()ic) c%*r$ %r &%"! )as *ris"ic$i%n%ver i$, is "e$erine" &ase" %n $)e aega$i%ns c%n$aine" in $)e c%'ain$ %# $)e 'ain$i##, irres'ec$ive %# ()e$)er %r n%$ 'ain$i## is0

0SUPRE6E COURT REPORTS ANNOTATEDOren"ain vs. B9 /%es, Inc.

en$i$e" $% rec%ver *'%n a %r s%e %# $)e cais asser$e" $)erein. I$ cann%$ "e'en" %n $)e "e#enses se$ #%r$) in $)e ans(er, in a%$i%n $% "isiss, %r in a %$i%n #%r rec%nsi"era$i%n &! $)e "e#en"an$ci$a$i%ns %i$$e".0FIn $)e case a$ &enc), $)e B9 /%es C%'ain$ #%r rec%nve!ance (as # ie" %n =an*ar! 0, 1@@ agains$ LS9SIPI an" 9%renci% B.Oren"ain, in Civi Case N%. LP-@-??0.In 1@@, Sec$i%n %# PD N%. @?0-A,0G ()ic) (as a''r%ve" %n 6arc) 11, 1@F, (as s$i $)e a( in #%rce()ere&! $)e SEC s$i)a" %rigina an" e:c*sive *ris"ic$i%n $% )ear an" "eci"e cases inv%ving>& c%n$r%versies arising %*$ %# in$ra-c%r'%ra$e %r 'ar$ners)i' rea$i%ns, &e$(een an" a%ng s$%c

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6%re s%, in S'ee" Dis$ri&*$ing C%r'., (e )e" $)a$>T)e #irs$ eeen$ re+*ires $)a$ $)e c%n$r%vers! *s$ arise %*$ %# in$ra-c%r'%ra$e %r 'ar$ners)i' rea$i%ns &e$(een an! %r a %# $)e

0F 4.R. N%. 1@1, 6arc) 1F, 0??, 0 SCRA @1, F?.0G Re%rgani5a$i%n %# $)e Sec*ri$ies an" E:c)ange C%issi%n (i$) A""i$i%na P%(ers an" Pacing $)e sai" Agenc! *n"er $)e

A"inis$ra$ive S*'ervisi%n %# $)e O##ice %# $)e Presi"en$ as aen"e" &! PD N%s. 1, 1FG, an" 1F@@.0@ 4.R. N%. @0G1, N%ve&er @, 1@@?, 1@1 SCRA ?G, 0.

VOL. ?, OCTOBER 1, 0??

Oren"ain vs. B9 /%es, Inc.'ar$ies an" $)e c%r'%ra$i%n, 'ar$ners)i' %r ass%cia$i%n %# ()ic) $)e! are s$%cN%()ere in sai" "ecree KPD @?0-A "% (e #in" even s% *c) as an in$ii"a$i%n Ksic $)a$ a&s%*$e *ris"ic$i%n an" c%n$r% isves$e" in $)e Sec*ri$ies an" E:c)ange C%issi%n in a a$$ers a##ec$ing c%r'%ra$i%ns. T% *')%" $)e res'%n"en$s arg*en$s(%*" re%ve (i$)%*$ $)e ega i'ria$*r #r% $)e reg*ar c%*r$s a c%n#ic$s %ver a$$ers inv%ving %r a##ec$ing c%r'%ra$i%ns,regar"ess %# $)e na$*re %# $)e $ransac$i%ns ()ic) give rise $% s*c) "is'*$e. T)e c%*r$s (%*" $)en &e "ives$e" %# *ris"ic$i%n n%$&! reas%n %# $)e na$*re %# $)e "is'*$e s*&i$$e" $% $)e #%r a"*"ica$i%n, &*$ s%e! #%r $)e reas%n $)a$ $)e "is'*$e inv%ves ac%r'%ra$i%n. T)is cann%$ &e "%ne. T% "% s% (%*" n%$ %n! &e $% encr%ac) %n $)e egisa$ive 'rer%ga$ive $% gran$ an" rev% 1 $)e #%rer *"gen$ is #ina; 0 i$ is ren"ere" &!a c%*r$ )aving *ris"ic$i%n %ver $)e s*&ec$ a$$er an" $)e 'ar$ies; i$ is a *"gen$ %r an %r"er %n $)e eri$s; an" $)ere is&e$(een $)e #irs$ an" sec%n" ac$i%nsi"en$i$! %# 'ar$ies, %# s*&ec$ a$$er, an" ca*ses %# ac$i%n.Pe$i$i%ner asser$s $)a$ &ar &! 'ri%r *"gen$ e:is$s since $)e 6a! G, 1@@F Or"er %# $)e SEC en &anc )a" &ec%e #ina ()ic)(%*" e##ec$ive! 'rec*"e $)e a"*"ica$i%n %# Civi Case N%. LP-@-??00.

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We DISA4REE.W)ie $)e sai" SEC %r"er "enie" $)e %$i%n #%r in$erven$i%n #ie" &! in$erven%r E"*ar"% S. R%"rig*e5, i$ "i" n%$, )%(ever, res%ve$)e iss*es raise" in $)e %$i%n %n $)e eri$s. A *"gen$ is %n $)e eri$s ()en i$ a%*n$s $% a ega "ecara$i%n %# $)e res'ec$iverig)$s an" "*$ies %# $)e 'ar$ies &ase" *'%n $)e "isc%se" #ac$s e')asis s*''ie" an" ci$a$i%n %i$$e". I$ is a''aren$ $)a$ $)eSEC %r"er in +*es$i%n ere!

0 9rancisc% v. C%, 4.R. N%. 11@, =an*ar! 1, 0??, G1 SCRA 01, 0G. L*5%n Deve%'en$ Ban< v. C%n+*ia, 4.R. N%. 1G, Se'$e&er 01, 0??, F? SCRA , . I"., a$ '. ?.

SUPRE6E COURT REPORTS ANNOTATEDOren"ain vs. B9 /%es, Inc.acC%nc*siveness %# *"gen$ %'era$es as a &ar even i# $)ere is n% i"en$i$! as &e$(een $)e #irs$ an" sec%n" ca*ses %# *"gen$.Un"er $)e "%c$rine, an! rig)$, #ac$, %r a$$er in iss*e "irec$! a"*"ica$e" %r necessari! inv%ve" in $)e "e$erina$i%n %# an ac$i%n&e#%re a c%'e$en$ c%*r$ in ()ic) *"gen$ is ren"ere" %n $)e eri$s is c%nc*sive! se$$e" &! $)e *"gen$ $)erein an" cann%$again &e i$iga$e" &e$(een $)e 'ar$ies an" $)eir 'rivies ()e$)er %r n%$ $)e cai, "ean", '*r'%se, %r s*&ec$ a$$er %# $)e $(%ac$i%ns is $)e sae.Evi"en$!, c%nc*siveness %# *"gen$ a! %'era$e $% &ar $)e sec%n" case even i# $)ere is n% i"en$i$! %# ca*ses %# ac$i%n. T)e

*"gen$ is c%nc*sive in $)e sec%n" case, %n! as $% $)%se a$$ers ac$*a! an" "irec$! c%n$r%ver$e" an" "e$erine", an" n%$ as$% a$$ers ere! inv%ve" $)erein.

A 'er*sa %# $)e SEC case (%*" s)%( $)a$ rec%nve!ance %# $)e 'r%'er$! in c%n$r%vers! (as nei$)er an iss*e n%r a reie# s%*g)$&! an! 'ar$! in $)e SEC 'r%cee"ings. Evi"en$!, $)e SEC N%ve&er F, 1@@ Oni&*s Or"er "i" n%$ en$i%n an! rec%nve!ance %#'r%'er$!.

S*'ra n%$e 0, a$ ''. 0@-0?. S*'ra n%$e 1?.F

VOL. ?, OCTOBER 1, 0??FOren"ain vs. B9 /%es, Inc.E"*ar"% S. R%"rig*e5, $)e in$erven%r in $)e SEC case, "i" n%$ "ean" $)e reversi%n %# $)e "is'*$e" 'r%'er$! 'recise! &eca*se$)e SEC )as n% *ris"ic$i%n %ver $)e ac$i%n#%r rec%nve!ance. Ass*ing, arg*en"%, $)a$ in$erven%r R%"rig*e5 raise" $)e iss*e %n $)e vai"i$! %# 'e$i$i%ners ac$s in )isca'aci$! as receiver, s$i, $)e SEC N%ve&er F, 1@@ Oni&*s Or"er "i" n%$ "eve in$% $)e eri$s %# $)e in$erven$i%n n%r "i" $)e%r"er give "*e c%*rse $% $)e in$erven$i%n as i$ (as *n$ie!.T)*s, $)ere is n% c%nc*siveness %# *"gen$ as $)e rec%nve!ance %# $)e %$ s%" $% LS9SIPI (as n%$ "irec$! "eci"e" %rnecessari! inv%ve" an" a"*"ica$e" in $)e sai" SEC %r"er.9*r$)er%re, 'e$i$i%ner arg*es $)a$ $)e C%i$$ee %# Receivers s)%*" )ave s%*g)$ 'ri%r cearance #r% $)e SEC &e#%reins$i$*$ing $)e ac$i%n #%r rec%nve!ance &e#%re $)e RTC, &eca*se i$ "%es n%$ )ave $)e ega ca'aci$! $% s*e. T)is is inc%rrec$. One

%# $)e genera '%(ers %# a receiver *n"er R*e @, Sec$i%n %# $)e R*es %# C%*r$ is $)e '%(er $% &ring an" "e#en" s*i$s in s*c)ca'aci$!.Pe$i$i%ner as% c%n$en"s $)a$ an ac$i%n #ie" &! a s*ccess%rreceiver agains$ )i as 're"ecess%r-receiver is n%$ a%(e" *n"er R*e@, Sec$i%n (i$)%*$ eave %# c%*r$ ()ic) a''%in$e" )i; as Sec$i%n 'r%vi"es $)a$ n% ac$i%n a! &e #ie" &! %r agains$ areceiver (i$)%*$ eave %# $)e c%*r$ ()ic) a''%in$e" )i. T)is is &ere#$ %# eri$.T)e r*e $a Pr%vi"e", T)a$ $)e S*'ree C%*r$ in $)e e:ercise %#i$s a*$)%ri$! a! "esigna$e $)e Regi%na Tria C%*r$ &ranc)es $)a$ s)a e:ercise *ris"ic$i%n %ver $)e cases. T)e C%issi%n s)are$ain *ris"ic$i%n %ver 'en"ing cases inv%ving in$ra-c%r'%ra$e "is'*$es s*&i$$e" #%r #ina res%*$i%n ()ic) s)%*" &e res%ve"

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(i$)in %ne 1 !ear #r% $)e enac$en$ %# $)is C%"e. T)e C%issi%n s)a re$ain *ris"ic$i%n %ver 'en"ing s*s'ensi%n %#'a!en$Qre)a&ii$a$i%n cases #ie" as %# ? =*ne 0??? *n$i #ina! "is'%se" e')asis s*''ie".S*&se+*en$!, %n =an*ar! 0, 0??1, $)e S*'ree C%*r$ iss*e" S*''een$a A"inis$ra$ive Circ*ar N%. G-?1 ()ic) %r"ere" $)a$e##ec$ive 6arc) 1, 0???, a SEC cases %rigina! assigne" %r $ransi$$e" $% $)e reg*ar RTC s)a &e $rans-

F Na*$ica Canning C%r'%ra$i%n v. 7**, 4.R. N%. 1GG, Oc$%&er 1@, 0??, F SCRA 1, 0F.G I".@

VOL. ?, OCTOBER 1, 0??

@Oren"ain vs. B9 /%es, Inc.#erre" $% $)e &ranc)es %# $)e reg*ar RTC s'ecia! "esigna$e" $% )ear s*c) cases in acc%r"ance (i$) A6 N%. ??-11-?-SC.D*ring $)e Bicaera C%n#erence C%i$$ees "isc*ssi%ns %n $)e c%n#ic$ing 'r%visi%ns %# Sena$e Bi N%. 100? an" /%*se BiN%. G?1 %n $)e Aen"en$s $% $)e Sec*ri$ies, Reg*a$i%ns an" En#%rceen$ Ac$, #%rer Sena$%r Ra* S. R%c% ren"ere" )isre'%r$,@ as #%%(s>T)e #irs$ a%r "e'ar$*re is as regar"s $)e Sec*ri$! E:c)ange C%issi%n. T)e Sec*ri$ies an" E:c)ange C%issi%n )as &eena*$)%ri5e" *n"er $)is 'r%'%sa $% re%rgani5e i$se#. As an a"inis$ra$ive agenc!, (e s$reng$)ene" i$ an" a$ $)e sae $ie (e $a

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c%'iance (i$) s*c) r*es, reg*a$i%ns an" %r"ers;) Enis$ $)e ai" an" s*''%r$ %# an"Q%r "e'*$i5e an! an" a en#%rceen$ agencies %# $)e 4%vernen$, civi %r ii$ar! as (e asan! 'riva$e ins$i$*$i%n, c%r'%ra$i%n, #ir, ass%cia$i%ns %r 'ers%n in $)e i'een$a$i%n %# i$s '%(ers an" #*nc$i%ns *n"er $)is C%"e;i Iss*e cease an" "esis$ %r"ers $% 'reven$ #ra*" %r in*r! $% $)e inves$ing '*&ic; P*nis) #%r c%n$e'$%# $)e C%issi%n, &%$) "irec$ an" in"irec$, in acc%r"ance (i$) $)e 'er$inen$ 'r%visi%ns %# an" 'ena$ies 'rescri&e" &! $)e R*es%# C%*r$;

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G.R. No. 11135. /(e 1, 199.

A. T)e 'e$i$i%n #%r re)a&ii$a$i%n an" $)e 'r%'%se" re)a&ii$a$i%n 'an "% n%$ re+*ire e:$ra%r"inar! c%r'%ra$e ac$i%ns.B. Since n% e:$ra%r"inar!c%r'%ra$e ac$i%ns are re+*ire" %r even c%n$e'a$e" as necessar! an" "esira&e #%r $)e re)a&ii$a$i%n %# CRDC, $)e re+*ireen$s%# $)e c%r'%ra$i%n c%"e #%r $)e a''r%va %# s*c) ac$i%ns cann%$ &e c%'ie" (i$).C. T)e re)a& r*es an" $)e c%r'%ra$i%n c%"e "% n%$ a%( %r in$en" &in" &an

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O&serve $)a$ R*e , Sec$i%n 0a T)e 'r%'%se" R*es n%( re+*ire, as an a$$ac)en$ $% $)e 'e$i$i%n, a Cer$i#ica$e a$$es$ing, a%ng %$)ers, $)a$ $)e g%verning&%"! an" %(ners %# $)e 'e$i$i%ning "e&$%r )ave a''r%ve" an" c%nsen$e" $% ()a$ever is necessar! %r "esira&e inc*"ing &*$ n%$ii$e" $% increasing %r "ecreasing $)e a*$)%ri5e" ca'i$a s$%c< %# $)e c%'an! an" %"i#ica$i%n %# s$%c