Conflicts Cases Fpr 2015 1st Week

8/10/2019 Conflicts Cases Fpr 2015 1st Week

1/106

THE HOME INSURANCE COMPANY, Petitioner, vs. EASTERN

SHIPPING LINES and/or ANGEL JOSE TRANSPORTATION, INC.

Respondent.

G. R. L-343!, J"#$ !%, &'3

(ACTS)

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2/106

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G.R. No. L-!4!'B S6+;*r 3%, &'&GENERAL GARMENTS CORPORATION, 6+0+0onr,

vs.THE IRECTOR O( PATENTS and PURITAN SPORTS>EAR

CORPORATION, rs6ondn+s.

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COMMUNICATION MATERIALS S. CA

COMMUNICATION MATERIALS AN ESIGN, INC + a# vs.CA + a#.G.R. No. &%!!!3A"@"s+ !!, &''

(ACTS) P+0+0onrs COMMUNICATION MATERIALS AN ESIGN,INC., CMI and ASPAC MULTI-TRAE INC., ASPAC ar *o+

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3/106


4/106

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5/106

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6ro0*0+0on 80+ 6r#0;0nar$ 0n"n9+0on or rs+ra0n0n@ ordr a@a0ns+ C(I

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ISSUES)

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&. NO

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6/106

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!. NO

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o an order to issuesars on or *:or Ma$ &', &'' and

o actual issuanceo: + sars a:+r Ma$ &', &'' - CSI 8as

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3. YES.

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7/106

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8/106

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THIR IISION

QG.R. No. &3&%. S6+;*r &4, !%%%

SU=IC =AY METROPOLITAN AUTHORITY, RICHAR J.

GORON, (ERINAN M. ARISTORENAS, MANUEL >.UIJANO and RAYMON P. ENTURA,petitioners, vs.UNIERSAL INTERNATIONAL GROUP O( TAI>AN, UIGINTERNATIONAL EELOPMENT CORPORATION and SU=IC=AY GOL( AN COUNTRY CLU=, In9., respondents.

E C I S I O N

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o: + rs6ondn+ 9o"r+ *o+ da+d %3 O9+o*r &'' r*$STAN.?000Q3

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C0+$ =ran9 3,vQB 809 8as a::0r;d *$ + a66##a+ 9o"r+,@ran+d r0n rs6ondn+s7 a66#09a+0on :or a 8r0+ o: 6r#0;0nar$;anda+or$ and 6ro0*0+or$ 0n"n9+0on 0n +0s 80s)v0Q

HERE(ORE, 6r;0ss 9ons0drd, + d:ndan+s, +0r a@n+s

o::09rs and ;6#o$s, and a## 6rsons a9+0n@ 0n +0r *a#: ard0r9+d +o rs+or 6a9:"##$ +o + 6#a0n+0::s a## 6ossss0on o: +@o#: 9o"rs, 9#"*o"s, o::09s and o+r a66"r+nan9s s"*9+ o:+ Las and v#o6;n+ A@r;n+ *+8n UIG Ta08an and +S=MA and + sa0d d:ndan+s, and +0r a@n+s, o::09rs Qand;6#o$s +o r:ra0n Q:ro; o*s+r"9+0n@ or ;dd#0n@ 0n + o6ra+0oand ;ana@;n+ +ro: or D D D o+r80s 9o;;0++0n@ a9+s 0n0;09+o + 0n+rs+ o: 6#a0n+0::s 0n + ;ana@;n+ or o6ra+0on o: +

sa;, "n+0# + 6ar+0s ;a$ * ard on + ;r0+s o: + 9as.


9/106

9a6a90+$. H sa##, o8vr, r;a0n as d:ndan+ 0n 0s o::090a#9a6a90+$.?

T (a9+s

T "nd0s6"+d :a9+s ar s";;ar0d *$ + Co"r+ o: A66a#s as

:o##o8s)v000Q


10/106

D+ra"d090a# +a10n@ o: 6ossss0on. I+ rasond +a+ r0+ o: Pr#0;0nar$

In"n9+0on d0d no+ d0s6os o: + ;a0n 0ss". Con9#"d0n@, 0+ o*srvd

+a+


11/106

0s+0##0n@ + a*ov-"o+d ass0@n;n+ o: rrors, 8 :0nd +8o ;a0n

0ss"s *:or "s) a 8+r + dn0a# o: 6+0+0onrs7 Mo+0on +o0s;0ss 8as 9orr9+, and * 8+r + 0ss"an9 o: + >r0+ o:Pr#0;0nar$ Manda+or$ and Pro0*0+or$ In"n9+0on 8as 6ro6r.

Undr + :0rs+ 0ss", + Co"r+ sa## rso#v & 8+r Rs6ondn+

UIG as + 9a6a90+$ +o s", ! 8+r Rs6ondn+s UIGC andS=GCCI ar ra# 6ar+0s 0n 0n+rs+, and 3 8+r + RTC as

"r0sd09+0on ovr + s"0+. Undr + s9ond 0ss", + Co"r+ sa## d+r;0n +s "s+0ons)

& 8+r + >r0+ o: In"n9+0on a@a0ns+ S=MA 0ss"d *$ + +r0a#9o"r+ 9on+ravns S9+0on !& o: RA !! ! 8+r rs6ondn+sav s+a*#0sd +0r n+0+#;n+ +o + >r0+ and 3 8+r

S=MA7s rs90ss0on o: + LA and +a1ovr o: + 6ro6r+$ ara##o8d *$ #a8.

T Co"r+7s R"#0n@

T P+0+0on 0s 6ar+#$ ;r0+or0o"s. T CA 9orr9+#$ a::0r;d +

dn0a# o: + Mo+0on +o 0s;0ss, *"+ rrd 0n s"s+a0n0n@ + >r0+ o:Pr#0;0nar$ Manda+or$ and Pro0*0+or$ In"n9+0on.

(0rs+ Iss")

!enial of the "otion to !ismiss

In 0+s a;ndd Mo+0on +o 0s;0ss :0#d *:or + RTC, 6+0+0onrs

9on+ndd +a+ UIG ad no 9a6a90+$ +o s", and +a+ UIGC andS=GCCI ad no ;a+r0a# 0n+rs+ 0n + 6rsn+ 9as. =o+ +a66##a+ and + +r0a# 9o"r+s r9+d +s 9on+n+0ons. R0+ra+0n@+ ar@";n+s *:or "s, 6+0+0onrs add +a+ + RTC ad no

"r0sd09+0on ovr + na+"r o: + 9as. #a$ Respondents% Capacity to &ue

P+0+0onrs 9on+nd +a+ UIG dos no+ av + 9a6a90+$ +o s"*9a"s 0+ 0s a :or0@n non-rs0dn+ 9or6ora+0on no+ #09nsd *$ +S9"r0+0s and ED9an@ Co;;0ss0on +o do *"s0nss 0n +P0#0660ns. T$ 9on+nd +a+ + 9a6a90+$ +o s" 0s 9on:rrd *$ #a8and no+ *$ + 6ar+0s.

As a @nra# r"#, "n#09nsd :or0@n non-rs0dn+ 9or6ora+0ons

9anno+ :0# s"0+s 0n + P0#0660ns. S9+0on &33 o: + Cor6ora+0onCod s690:09a##$ 6rov0ds)


12/106

&*+CC and +!C

S9+0on !, R"# 3 o: + &'' R"#s o: Co"r+, d:0ns a ra# 6ar+$ 0n

0n+rs+ 0n +0s ;annr) ar no+ 6rs"add. T CA ;ad a :a9+"a# :0nd0n@ +a+ UIGC

and S=GCCI 8r 0n 6ossss0on o: + 6ro6r+$ 8n S=MA +oo1ovr. Morovr, 0+ a#so :o"nd +a+ +$ ad a#rad$ ;ad s"*s+an+0a#0nvs+;n+s 0n + 6ro9+. > :0nd no rason a+ +0s +0; +o "s+0:$ ad0::rn+ 9on9#"s0on. In v08 o: +s 90r9";s+an9s, 8 a@r 80++ CA +a+ UIGC and S=GCCI s+and +o * *n:0++d or 0n"rd *$+ 6rsn+ s"0+ and so"#d * d;d ra# 6ar+0s 0n 0n+rs+.DD000Q!3

S=MA7s 9on+n+0on -- +a+ 0+ ad no+ a66rovd UIG7s ass0@n;n+ o:

r0@+s +o UIGC -- 0s no+ n9ssar0#$ *r:+ o: ;r0+, o8vr.S=MA so"#d ra0s +0s 0ss", no+ no8 *"+ 0n a66ro6r0a+

6ro9d0n@s *:or + +r0a# 9o"r+. #c$ Jurisdiction /ver the &ubject "atter

P+0+0onrs a#so ar@" +a+ + RTC ad no "r0sd09+0on ovr + 9as,

809 8as a##@d#$ an 9+;n+ s"0+ 9o@n0a*# *$ ;"n0906a# +r0a#9o"r+s. T$ add +a+ + Co;6#a0n+ d;andd +a+ rs6ondn+s *rs+ord +o + 6ossss0on o: + s"*9+ #asd 6r;0ss.

> d0sa@r. A 9#os s9r"+0n$ o: + a;ndd Co;6#a0n+ rva#s +a+

0+ so"@+ +o no0n 6+0+0onrs :ro; rs90nd0n@ + 9on+ra9+ and +a10n@ovr + 6ro6r+$. >0# 6ossss0on 8as a n9ssar$ 9ons"n9 o:+ s"0+, 0+ 8as ;r#$ 0n90dn+a#. T ;a0n 0ss" 8as 8+rS=MA 9o"#d rs90nd + A@r;n+. =9a"s 0+ 8as a d0s6"+ +a+8as 0n9a6a*# o: 69"n0ar$ s+0;a+0on, 0+ 8as 80+0n + "r0sd09+0ono: + RTC.DD0vQ!4

S9ond Iss")

ssuance of the 0rit of njunction

#a$ Present 0rit of njunction1ot *arred by R) 2332

P+0+0onrs 9on+nd +a+ + RTC 8as *arrd :ro; 0ss"0n@ a 8r0+ o:

0n"n9+0on 0n +0s 9as, 6"rs"an+ +o S9+0on !& o: RA !! 8096rov0ds as :o##o8s)

ar no+ 6rs"add. > a@r 80+ + CA +a+ + 6rsn+

6rov0s0on 0s no+ a *#an1+ 6ro0*0+0on o: + 0ss"an9 o: an 0n"n9+0r#0: a@a0ns+ an$ S=MA a9+0on. S9+0on !& o: RA !! 6ro0*0+son#$ s"9 9o"r+ ordrs 809 rs+ra0n + r0+ 0ss"d 0n +0s 9as d0d no+ rs+ra0n or no0n +

0;6#;n+a+0on o: an$ o: S=MA7s 9onvrs0on 6ro9+s. In :a9+, 0+alloed + to proceed ith the development o: + @o#: 9o"rs

6"rs"an+ +o + LA. I+ ;r#$ rs+ra0nd S=MA :ro; +a10n@ ovr+ @o#: 9o"rs. C#ar#$, + assa0#d RTC Ordr d0d no+ s1 +o d#or a;6r + 9onvrs0on o: + :or;r nava# *as 0n+o 90v0#0an "s

Morovr, + assa0#d >r0+ o: Pr#0;0nar$ In"n9+0on 8as 0ss"d 0

9onn9+0on 80+ a d0s6"+ 6r+a0n0n@ +o + correct interpretationo+ LA. To d0vs+ + +r0a# 9o"r+ o: +a+ a"+or0+$ 0s +o @0v S=MA"na;6rd d0s9r+0on +o d0sr@ard 0+s 9on+ra9+"a# o*#0@a+0ons "nd+ @"0s o: 0;6#;n+0n@ 0+s 6ro9+s. Indd, S9+0on !& o: RA!! so"#d no+ *ar "d090a# s9r"+0n$ o: 0rr@"#ar0+0s a##@d#$9o;;0++d *$ S=MA.DDv0Q!

#b$Right of Respondents to njunctive Relief

A 8r0+ o: ;anda+or$ 0n"n9+0on r"0rs + 6r:or;an9 o: a

6ar+09"#ar a9+DDv00Q! and 0s @ran+d on#$ "6on a so80n@ o: +:o##o80n@ r"0s0+s)


13/106

do"*+ and d0s6"+. N9ssar0#$, + a66#09an+ as + *"rdn o:so80n@ +a+ 0+ 0s n+0+#d +o + 8r0+.

In +0s 9as, + :0rs+ assa0#d RTC Ordr da+d O9+o*r 3, &'' 8as

::9+0v#$ a 6r#0;0nar$ ;anda+or$ 0n"n9+0on *9a"s 0+ d0sa@r. A+ + o"+s+, 0+ so"#d * "ndrs9ord +a+ +s 9as

ar no+


14/106

>r 0+ 0s o*9+d +o, a "d090a# d+r;0na+0on o: + 0ss"s 0s s+0##n9ssar$.? S0@n0:09an+#$, they did not categorically rule that such

stipulation as void. In :a9+, + s+06"#a+0on 0s #a8:"#. In Consing,+ Co"r+ #d +a+ r + #sss o::r 6$s09a# rs0s+an9, + #ssors ;a$ a66#$ :a 8r0+ o: 6r#0;0nar$ ;anda+or$ 0n"n9+0on, +o 809 +$ av a9#ar and "n;0s+a1a*# r0@+. Indd, 9o"r+s ar + :0na# ar*0+rs.

T"s, 9on+rar$ +o + r"#0n@ o: + CA and + RTC, +r 0s a

ra+0ona#0a+0on and a #@a# "s+0:09a+0on :or + s+06"#a+0on a"+or00S=MA +o rs90nd + 9on+ra9+ and +o +a1 ovr + 6ro6r+$.

1o 5alid /bjection on the Part of Respondents As ar#0r o*srvd, +r 8r svra# v0o#a+0onsDDD0DQ3' o: +

LA, 809 8r d"#$ r6or+d *$ S=MA +o UIG. Rs6ondn+s,o8vr, d0d no+ dn$ or 9on+rovr+ +;. E::9+0v#$, +r:or, +o::rd no va#0d or s"::090n+ o*9+0on +o S=MA7s Dr90s o: 0+ss+06"#a+d r0@+ +o D+ra"d090a##$ rs90nd + LA and +a1 ovr +

6ro6r+$ 0n 9as o: ;a+r0a# *ra9. (irst,+ A;ndd Co;6#a0n+ ;r#$ ar@"d +a+ + +a1ovr 8as


15/106

t should be underscored that during all these exchanges, + didnot controvert its alleged noncompliance ith the '!).

4hird,0n + ar0n@ :or + a66#09a+0on :or a 8r0+ o: ;anda+or$

0n"n9+0on, rs6ondn+s 6rsn+d +8o 80+nsss) Or#ando d #aMasa, o6ra+0ons ;ana@r o: S=GCCI and an0#o A#a*ado,9o;6+ro##r o: UIGC. #a Masa +s+0:0d on + a##@d :or90*#+a1ovr *$ S=MA, 80# A#a*ado +s+0:0d +a+ rs6ondn+s ad0nvs+d &! ;0##0on 0n + ra*0#0+a+0on o: + @o#: 9o"rs.Rs6ondn+s, o8vr, d0d no+ dn$ + v0o#a+0ons o: +0r"ndr+a10n@, 809 8r D6#a0nd *$ A++$. Ra$;ond P. n+"ra.D#v0

Q4 Mos+ s0@n0:09an+, n0+r + CA nor + RTC ;ad an$ :0nd0n@ +a+

+r 8as no *ra9 on + 6ar+ o: UIG. L0180s, +$ d0d no+ vn;a1 an$ o*srva+0on +a+ rs6ondn+s ad 9on+rovr+d S=MA7s9#a0;.

C#ar#$, rs6ondn+s7 s+and 8as no+ a va#0d or s"::090n+ o*9+0on +o

S=MA7s Dr90s o: 0+s r0@+. Indd, s"s+a0n0n@ +0r 9#a0; 8o"#d"nd"#$ d0;0n0s + :or9 o: s"9 #a8:"# s+06"#a+0on and a##o8

6ar+0s +o d0sr@ard 0+ a+ 80## 80+o"+ an$ va#0d rason. In +0s 9as,rs6ondn+s ;0sra*#$ :a0#d +o @0v an$ s;*#an9 o: o*9+0on +o+ ;r0+s o: S=MA7s a##@a+0ons. Morovr, 8 :0nd no ad"a+so80n@ o: rs0s+an9 +o S=MA7s 0;6#;n+a+0on o: + s"*9+s+06"#a+0on.

Undr + 90r9";s+an9s, S=MA so8d +a+ 0+ ad a r0@+ no+ on#$

+o rs90nd + 9on+ra9+, *"+ a#so +o +a1 ovr + 6ro6r+$. On +o+r and, rs6ondn+s av no+ so8n an$ 0+o"+ 6r"d@0n@ +0r r0@+ +o o::r9on+rovr+0n@ v0dn9 d"r0n@ + +r0a# on + ;r0+s, + Co"r+ o#+a+ +$ :a0#d +o do so 0n +0r a66#09a+0on :or a 8r0+ o: 6r#0;0nar0n"n9+0on.

8pilogue

T Co"r+ o: A66a#s D6rssd 0+s a66rns0on +a+ a r"#0n@ a@a0

UIG 8o"#d snd a ;ssa@ +o :or0@n 0nvs+ors +a+ 8 HERE(ORE, + P+0+0on 0s 6ar+0a##$ +R)148!,and + assa0#

90s0on o: + Co"r+ o: A66a#sR858R&8! and&84 )&!80nso:ar as 0+ a::0r;d + >r0+ o: Pr#0;0nar$ In"n9+0on 0ss"d *$ ++r0a# 9o"r+. T sa0d >r0+ 0s r*$'(48!and + 9as

R8")1!8!+o + RTC :or +r0a# on + ;r0+s. In + ;an+0;,rs6ondn+s sa##, "6on :0na#0+$ o: +0s 90s0on, $0#d +

6ossss0on, + o6ra+0on and + ;ana@;n+ o: + s"*9+6ro6r+$ +o S=MA. No 9os+s.

SO ORERE.

M#o, Ca0r;an, 0+"@, P"r0s0;a, and Gona@a-R$s, JJ., 9on9"

THIR IISION

QG.R. No. &&43. (*r"ar$ , &''

ERIS PTE. LT.,petitioner, vs. COURT O( APPEALS and

EL(IN (. ENRIUE, JR., respondents. E C I S I O N

PANGANI=AN,J.)

Is a :or0@n 9or6ora+0on 809 so#d 0+s 6rod"9+s s0D+n +0;s ovr a

:0v-;on+ 6r0od +o + sa; (0#060no *"$r 80+o"+ :0rs+ o*+a0n0n@a #09ns +o do *"s0nss 0n + P0#0660ns, 6ro0*0+d :ro;;a0n+a0n0n@ an a9+0on +o 9o##9+ 6a$;n+ +r:or 0n P0#0660n9o"r+s In o+r 8ords, 0s s"9 :or0@n 9or6ora+0on


16/106

"06;n+ "sd :or 0nd"s+r0a# :#"0d 9on+ro# and PC 606s and:0++0n@s :or 0nd"s+r0a# "ss. In 0+s 9o;6#a0n+, 0+ a##@d +a+)D#v000Q!

= No.

&-4'-!'4&

&-BB3-!

:r0@+ 2 and-

#0n@ 9ar@s 6r

Inv. !3

&-BB3-B%&

&-BB3-B%&

&-B-3!B/

&-B-34&

&-B-434

&-4&-3& S#:-9o##9+

and9arr0d *$ *"$r

&-B-434

&-4&-%B

&-4&-3&

&-4&-'!%

=$ sa:r0@+

&-'-3!BB

(r0@+ 2 and-

#0n@ 9ar@s 6r

!& Mar

' %4 A6r

' &4 A6r

' !B A6r

' %!

Ma$ '

%BMa$ ' &B

Ma$ '

3&

Ma$ '

!'44

Inv. !'&!

&-'-B4

To+a#

T +rans:rs o: @oods 8r 6r:9+d 0n S0n@a6or, :or 6r0va+

rs6ondn+7s a99o"n+, (.O.=. S0n@a6or, 80+ a '%-da$ 9rd0+ +r;.S"*s"n+#$, d;ands 8r ;ad *$ 6+0+0onr "6on 6r0va+rs6ondn+ +o s++# 0s a99o"n+, *"+ + #a++r :a0#d/r:"sd +o do s

On A"@"s+ !, &''&, 6+0+0onr 9or6ora+0on :0#d 80+ + R@0ona#

Tr0a# Co"r+ o: Ma1a+0, =ran9 &3,#Q4 C0v0# Cas No. '&-!33

n+0+#d 98riks Pte. 'td. vs. !elfin 8nri7ue:, Jr.;:or + r9ovr$ oS4&,'3'.3 or 0+s "0va#n+ 0n P0#0660n 9"rrn9$, 6#"s 0n+rs++ron and da;a@s. Pr0va+ rs6ondn+ rs6ondd 80+ a Mo+0on+o 0s;0ss, 9on+nd0n@ +a+ 6+0+0onr 9or6ora+0on ad no #@a#9a6a90+$ +o s". In an Ordr da+d Mar9 , &''3,#0QB + +r0a# 9o"d0s;0ssd + a9+0on on + @ro"nd +a+ 6+0+0onr 0s a :or0@n9or6ora+0on do0n@ *"s0nss 0n + P0#0660ns 80+o"+ a #09ns. Td0s6os0+0v 6or+0on o: sa0d ordr rads) #00Q

HERE(ORE, 0n v08 o: + :or@o0n@, + ;o+0on +o d0s;0ss 0s

r*$ GRANTE and a99ord0n@#$, + a*ov-n+0+#d 9as 0sr*$ ISMISSE.

SO ORERE.?


17/106

On a66a#, rs6ondn+ Co"r+ a::0r;d sa0d ordr as 0+ d;d +

sr0s o: +ransa9+0ons *+8n 6+0+0onr 9or6ora+0on and 6r0va+rs6ondn+ no+ +o * an


18/106

+ Dr90s o: so; o: + :"n9+0ons nor;a##$ 0n90dn+ +o, and 0n6ro@rss0v 6ros9"+0on o:, + 6"r6os and o*9+ o: 0+sor@an0a+0on. s09 Gr0::0n v. I;6#;n+ a#r7s M"+. (0r Ins. Co.,!4& N.>. B, Pa"#0n O0# 2 Gas Co. v. M"+"a# Tan1 L0n Co.,!4 P. B&, B!, && O1#. &&& A"+o;o+0v Ma+r0a# Co. v. A;r09anS+andard M+a# Prod"9+s Cor6., &B N.E. ', %3, 3! III. 3.?

T a996+d r"# 0n "r0s6r"dn9 0s +a+ a9 9as ;"s+ * "d@d

0n + #0@+ o: 0+s o8n nv0ron;n+a# 90r9";s+an9s.#v00Q&& I+ so"#d* 16+ 0n ;0nd +a+ + 6"r6os o: + #a8 0s +o s"*9+ + :or0@n9or6ora+0on do0n@ *"s0nss 0n + P0#0660ns +o + "r0sd09+0on o:o"r 9o"r+s. I+ 0s no+ +o 6rvn+ + :or0@n 9or6ora+0on :ro;

6r:or;0n@ s0n@# or 0so#a+d a9+s, *"+ +o *ar 0+ :ro; a9"0r0n@ a

do;090# :or + 6"r6os o: *"s0nss 80+o"+ :0rs+ +a10n@ + s+6sn9ssar$ +o rndr 0+ a;na*# +o s"0+s 0n + #o9a# 9o"r+s.

T +r0a# 9o"r+ #d +a+ 6+0+0onr-9or6ora+0on 8as do0n@ *"s0nss

80+o"+ a #09ns, :0nd0n@ +a+) #v000Q&!


19/106

E"a##$ 0;6or+an+ 0s + a*sn9 o: an$ :a9+ or 90r9";s+an9 809

;0@+ +nd vn r;o+#$ +o n@a+ s"9 0n+n+0on +o 9on+0n" +6ro@rss0v 6ros9"+0on o: 6+0+0onr7s *"s0nss a9+0v0+0s 0n +0s9o"n+r$. Had 6r0va+ rs6ondn+ no+ +"rnd o"+ +o * a *ad r0s1, 0na## #01#0ood 6+0+0onr 8o"#d av 0nd:0n0+#$ 9on+0n"d 0+s9o;;r90a# +ransa9+0ons 80+ 0;, and no+ s"r6r0s0n@#$, 0n vr0n9ras0n@ vo#";s.

T"s, 8 o#d +a+ + sr0s o: +ransa9+0ons 0n "s+0on9o"#d no+

av *n 0so#a+d or 9as"a# +ransa9+0ons. >a+ 0s d+r;0na+0v o:


20/106

iR6"*#09 o: + P0#0660ns

SUPREME COURT

Man0#a(IRST IISION

G.R. No. L-44944 August 9, 1985

TOP-WELD MANUFACTURING, INC.,6+0+0onr,vs.ECED, S.A., IRTI, S.A., EUTECTIC CORPORATION, ICTOR C. GAERLAN, !"# T$E $ON.

COURT OF APPEALS, rs6ondn+s.

)ngara, Conception, Regula < Cru: 'a /ffice for petitioner.

)lon:o =. )ncheta for respondents.

GUTIERRE%, &R.,J.:

T0s 0s a 6+0+0on +o rv08 + d90s0on o: + Co"r+ o: A66a#s no8 In+r;d0a+ A66##a+ Co"r+ ann"##0n@6or+0ons o: + ordrs 0ss"d *$ J"d@ Gr@or0o P0nda o: + Co"r+ o: (0rs+ Ins+an9 o: R0a#.

P+0+0onr To6-8#d Man":a9+"r0n@, In9. To6-8#d 0s a P0#0660n 9or6ora+0on n@a@d 0n + *"s0nss o:;an":a9+"r0n@ and s##0n@ 8#d0n@ s"66#0s and "06;n+.

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21/106

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22/106

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23/106

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J"d@d *$ + :or@o0n@ s+andards, 8 a@r 80+ + Co"r+ o: A66a#s 0n 9ons0dr0n@ + rs6ondn+s as Fdo0n@*"s0nssF 0n + P0#0660ns. >n + rs6ondn+s n+rd 0n+o + d0s6"+d 9on+ra9+s 80+ + 6+0+0onr, +$8r 9arr$0n@ o"+ + 6"r6oss :or 809 +$ 8r 9ra+d, 0.. +o ;an":a9+"r and ;ar1+ 8#d0n@ 6rod"9+sand "06;n+. T +r;s and 9ond0+0ons o: + 9on+ra9+s as 8## as + rs6ondn+s 9ond"9+ 0nd09a+ +a+ +$s+a*#0sd 80+0n o"r 9o"n+r$ a 9on+0n"o"s *"s0nss, and no+ ;r#$ on o: a +;6orar$ 9ara9+r. T0s :a9+ 0svn ;or s+rn@+nd *$ + ad;0ss0on o: + rs6ondn+s +a+ +$ ar n@o+0a+0n@ 80+ ano+r @ro"6 :or ++rans:r o: + d0s+r0*"+ors06 and :ran90s0n@ r0@+s :ro; + 6+0+0onr.


25/106

Rs6ondn+s a9+s na*#d +; +o n+r 0n+o + ;a0ns+ra; o: o"r 9ono;09 #0: 0n 9o;6+0+0on 80+ o"r #o9a#*"s0nss 0n+rs+s. T0s n9ssar0#$ *r0n@s +; "ndr + 6rov0s0ons o: R.A. No. B4BB.

T rs6ondn+s 9on+nd +a+ +$ so"#d * D;6+d :ro; + r"0r;n+s o: R.A. B4BB *9a"s +6+0+0onr ;a0n+a0nd an 0nd6ndn+ s+a+"s d"r0n@ + D0s+n9 o: + d0s6"+d 9on+ra9+s.

T0s ;a$ * +r" 0: + 6+0+0onr 0s an 0nd6ndn+ n+0+$ 809 *"$s and d0s+r0*"+s 6rod"9+s no+ on#$ o: +6+0+0onr *"+ a#so o: o+r ;an":a9+"rrs or +ransa9+s *"s0nss 0n 0+s na; and :or 0+s a99o"n+ and no+ 0n +na; or :or + a99o"n+ o: + :or0@n 6r0n906a#.

A 6r"sa# o: + a@r;n+s *+8n + 6+0+0onr and + rs6ondn+s so8s +a+ +$ ar 0@#$ rs+r09+0v 0nna+"r. T a@r;n+s 6rov0d 0n 6ar+ + :o##o80n@ +r;s)

DDD DDD DDD

&%. No Sa#s 0n Trr0+or$ *$ IRTI

IRTI sa## no+ so#090+or or 9a"s or 6r;0+ 0+s ;6#o$s, #09nss or a@n+s +o so#090+ or ;a1an$ sa#s, d0r9+#$ or 0nd0r9+#$, o: >ELING PROUCTS 80+0n or +o + P0#0660ns. IRTIa@rs +o r:r +o LICENSEE a## 6rod"9+ 0n"0r0s r90vd *$ IRTI :or >ELINGPROUCTS ds+0nd :or P0#0660ns.

DDD DDD DDD

&. D D D D D D D D D

Restrictive Covenant

LICENSEE 80## no+, d0r9+#$ or 0nd0r9+#$, 80+o"+ + 8r0++n 9onsn+ o: IRTI a+ an$ +0;

d"r0n@ + 9on+0n"an9 o: +0s A@r;n+ and :or a 6r0od o: +8o $ars a:+r + da+ o: ++r;0na+0on o: +0s A@r;n+, n@a@ 0+r d0r9+#$ or 0nd0r9+#$ 0n + *"s0nss o: s##0n@6rod"9+s s0;0#ar +o sa0d >ELING PROUCTS, 0+r as 6r0n906a#, a@n+, ;6#o$ or+ro"@ s+o91 or 6ro6r0+ar$ 0n+rs+s 0n a +0rd 6ar+ n+0+$.

DDD DDD DDD

RESTRICTI

58 C/581)14

. ISTRI=UTOR sa## no+ d"r0n@ + 9on+0n"an9 o: +0s a@r;n+ d0s+r0*"+ 6rod"9+s o: an$

o+r ;an":a9+"rr or s"66#0r 0n + Trr0+or$ ass0@nd +o 0;, 809 ar s0;0#ar +o +Prod"9+s.

U6on + +r;0na+0on o: +0s a@r;n+ *$ 0+r 6ar+$, ISTRI=UTOR a@rs no+ +o n@a@,d0r9+#$ or 0nd0r9+#$, 0n + 9o;;r90a#0a+0on, d0s+r0*"+0on and/or ;an":a9+"r o: 6rod"9+s9o;6+0n@ 80+ an$ EUTECTIC W CASTOLIN 6rod"9+s 9ovrd *$ +0s a@r;n+, or o:6rod"9+s #01#$ +o a::9+ + sa# o: an$ EUTECTIC W CASTOLIN 6rod"9+s, 0+r as 6r0n906a#,a@n+ or ;6#o$ 0n + Trr0+or$, +0s 6ro0*0+0on +o D+nd :or a 6r0od o: +8o ! $ars :ro;+ da+ o: +r;0na+0on, D96+ :or + D6#090+ 6"r6os o: s##0n@ an$ r;a0n0n@ Prod"9+s s+0## 0n


26/106

ISTRI=UTORs 6ossss0on on + da+ o: +r;0na+0on o: +0s a@r;n+ 809 sa#s sa## no+* *#o8 + ISTRI=UTORs 6r+r;0na+0on s##0n@ 6r09 :or s"9 Prod"9+s "n#ss s"9 sa# 0s+o ECE or 0+s no;0n 0n 809 9as C#a"s &' ro: sa## @ovrn.

DDD DDD DDD

> 9an 9on9#"d +a+ ass";0n@ + 6+0+0onr ;a0n+a0ns an 0nd6ndn+ s+a+"s, 0n ssn9 0+ ;r#$ D+nds +o+ P0#0660ns + *"s0nss o: + :or0@n 9or6ora+0ons.

On + *as0s o: + :or@o0n@, 8 "6o#d + a66##a+ 9o"r+s :0nd0n@ +a+ FIRTI AN ECE 8r do0n@*"s0nss and n@a@0n@ 0n 9ono;09 a9+0v0+$ 0n + P0#0660ns ... as a 6rr"0s0+ +o 809 +$ so"#d av :0rs+s9"rd a 8r0++n 9r+0:09a+ :ro; + =oard o: Invs+;n+s.F

T rs6ondn+ 9o"r+, o8vr, rrd 0n o#d0n@ +a+ FIRTI and ECE av no+ s9"rd s"9 8r0++n 9r+0:09a+0n 9ons"n9 o: 809 +r 0s no o99as0on :or + =oard o: Invs+;n+s +o 0;6os + r"0r;n+s6rs9r0*d 0n + a:or"o+d 6rov0s0ons o: S9. 4, R.A. No. B4BB ... .F To a996+ +0s v08 8o"#d o6n + 8a$:or an 0n+r6r+a+0on +a+ *$ do0n@ *"s0nss 0n + 9o"n+r$ 80+o"+ :0rs+ s9"r0n@ + r"0rd 8r0++n 9r+0:09a+:ro; + =oard o: Invs+;n+s, a :or0@n 9or6ora+0on ;a$ v0o#a+ or d0sr@ard + sa:@"ards 809 + #a8, *$0+s 6rov0s0ons, s1s +o s+a*#0s.

> a@r, o8vr, +a+ +r 0s a ;or 9o;6##0n@ rason *0nd + :0nd0n@ +a+ + F9or6ora+0ons ar no+*o"nd *$ + r"0r;n+ on +r;0na+0on, and TOP->EL 9anno+ 0nvo1 + sa; a@a0ns+ + :or;r.F

As *+8n + 6ar+0s +;s#vs, R.A. No. B4BB dos no+ d9#ar as vo0d or 0nva#0d + 9on+ra9+s n+rd 0n+o80+o"+ :0rs+ s9"r0n@ a #09ns or 9r+0:09a+ +o do *"s0nss 0n + P0#0660ns. N0+r dos 0+ a66ar +o 0n+nd +o6rvn+ + 9o"r+s :ro; n:or90n@ 9on+ra9+s ;ad 0n 9on+ravn+0on o: 0+s #09ns0n@ 6rov0s0ons. Tr 0s nodn$0n@, +o"@, +a+ an F0##@a# s0+"a+0on,F as + a66##a+ 9o"r+ as 6"+ 0+, 8as 9ra+d 8n + 6ar+0svo#"n+ar0#$ 9on+ra9+d 80+o"+ s"9 #09ns.

T 6ar+0s ar 9ar@d 80+ 1no8#d@ o: + D0s+0n@ #a8 a+ + +0; +$ n+r 0n+o + 9on+ra9+ and a+ + +0;0+ 0s +o *9o; o6ra+0v. T80a"s v. Rosnr, !4B S> !d &% Ha## v. ="9r, !! S> !d '. Morovr, a6rson 0s 6rs";d +o * ;or 1no8#d@a*# a*o"+ 0s o8n s+a+ #a8 +an 0s a#0n or :or0@n 9on+;6orar$. In+0s 9as, + r9ord so8s +a+, a+ #as+, 6+0+0onr ad a9+"a# 1no8#d@ o: + a66#09a*0#0+$ o: R.A. No. B4BB a++ +0; + 9on+ra9+ 8as D9"+d and a+ a## +0;s +ra:+r. T0s 9on9#"s0on 0s 9o;6##d *$ + :a9+ +a+ +sa; s+a+"+ 0s no8 *0n@ 6ro6o"ndd *$ + 6+0+0onr +o *o#s+r 0+s 9#a0;. >, +r:or, s"s+a0n + a66##a+9o"r+s v08 +a+ F0+ 8as 0n9";*n+ "6on TOP->EL +o 1no8 8+r or no+ IRTI and ECE 8r 6ro6r#$a"+or0d +o n@a@ 0n *"s0nss 0n + P0#0660ns 8n +$ n+rd 0n+o + #09ns0n@ and d0s+r0*"+ors06a@r;n+s.F T vr$ 6"r6os o: + #a8 8as 90r9";vn+d and vadd 8n + 6+0+0onr n+rd 0n+o sa0da@r;n+s ds60+ + 6ro0*0+0on o: R.A. No. B4BB. T 6ar+0s 0n +0s 9as *0n@ "a##$ @"0#+$ o: v0o#[email protected], No. B4BB, +$ ar 0n 6ar0 d#09+o, 0n 809 9as 0+ :o##o8s as a 9ons"n9 +a+ 6+0+0onr 0s no+ n+0+#d +o+ r#0: 6ra$d :or 0n +0s 9as.

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27/106

Las+#$, 8 9o; +o + 0ss" o: F"s+ 9a"sF :or + +r;0na+0on o: + 9on+ra9+s or + a##@d v0o#a+0ons o: +9on+ra9+s ;ad *$ 6+0+0onr. To"@ 6ro6r#$ vn+0#a+d *#o8, +0s :a9+"a# 0ss" 8as no+ d+r;0nd *$ *o++ +r0a# 9o"r+ and + a66##a+ 9o"r+.

T r9ord so8s +a+ rs6ondn+s, 0n o66os0n@ + 0n"n9+0on s"0+ and a##@0n@ + v0o#a+0ons o: + 9on+ra9+s,s"*;0++d and r#0d on +0r a::0dav0+s. T 6+0+0onr, o8vr, +o r:"+ +s 9ar@s, s"*;0++d a FR6#$ +o

O66os0+0onF 809 0s n0+r vr0:0d nor s"66or+d *$ 9o"n+r-a::0dav0+s. Tr 0s no so80n@ 0n + r9ords*:or "s 8+r ora# +s+0;on$ 8as 6rsn+d *$ an$ o: + 6ar+0s or 8+r + a::0an+s 8r s"*9+d +o+ +s+ o: 9ross-Da;0na+0on and 0: an$, 8a+ 8as s+a+d d"r0n@ + ora# +s+0;on$.

T *"rdn o: ovr9o;0n@ + rs6ons0v ::9+ o: + ans8r 0s "6on + 6+0+0onr. H 8o a##@s a :a9+ as+ *"rdn o: 6rov0n@ 0+ and a ;r a##@a+0on 0s no+ v0dn9. L@as9a v. ra, ' P0#. 3 Harsa$v0dn9 a#on ;a$ * 0ns"::090n+ +o s+a*#0s a :a9+ 0n an 0n"n9+0on s"0+ Par1r v. ("r#on@, ! P. 4'% *"+,8n no o*9+0on 0s ;ad +r+o, 0+ 0s, #01 an$ o+r v0dn9, +o * 9ons0drd and @0vn + 0;6or+an9 0+dsrvs. S;0+ v. #a8ar 2 A+#an+09 T#@ra6 2 T#6on Co., B& A 44. A#+o"@ 8 so"#d 8arn o: +"nds0ra*0#0+$ o: 0ss"0n@ "d@;n+s so##$ on + *as0s o: + a::0dav0+s s"*;0++d, 8r as r, sa0d a::0dav0+sar ovr8#;0n@, "n9on+rovr+d *$ 9o;6+n+ v0dn9 and no+ 0nrn+#$ 0;6ro*a*#, 8 ar 9ons+ra0nd +o"6o#d + a##@a+0ons o: + rs6ondn+s r@ard0n@ + ;"#+0:ar0o"s v0o#a+0ons o: + 9on+ra9+s ;ad *$ +

6+0+0onr. A99ord0n@#$, 8 r"# +a+ +r D0s+s a "s+ 9a"s :or rs6ondn+s +o ;ov :or + +r;0na+0on o: +0r9on+ra9+s 80+ + 6+0+0onr.

Morovr, + :a9+s on r9ord so8 +a+ + FL09ns and T9n09a# Ass0s+an9 A@r;n+F *+8n 6+0+0onrand rs6ondn+ IRTI 8as D+ndd on#$ :or a 6r0od o: on $ar or +o * 6r90s, :ro; Jan"ar$ &, &'B +o9;*r 3&, &'B. T or0@0na# 0n"n9+0on s"0+ 8as *ro"@+ 0n + 9o"r+ a "o 0n J"n&'B, + 6"r6os *0n@+o s+o6 + rs6ondn+ :ro; +r;0na+0n@ + 9on+ra9+. T0s 6"r6os 8as ra#0d 8n + 9o"r+ @ran+d +0n"n9+0on. =$ + +0; rs6ondn+s a66a# 8as d90dd *$ + Co"r+ o: A66a#s, 0+ 8as a#rad$ 6as+ +D+ndd 6r0od. T d0s6"+ *+8n + 6ar+0s ad *n rndrd ;oo+ and a9ad;09. I+ so"#d * s+a+d +a++ 9o"r+s * 0+ + or0@0na# +r0a# 9o"r+ or + a66##a+ 9o"r+ av no 6o8r +o ;a1 9on+ra9+s :or + 6ar+0s. No9o"r+ 8o"#d * "s+0:0d 0n D+nd0n@ + #0: o: + 9on+ra9+s, s"*9+ o: +0s 9on+rovrs$, s0n9 +a+ 8o"#d dov0o#n9 +o + *as09 6r0n906# +a+ 9on+ra9+s ;"s+ * + vo#"n+ar$ a@r;n+s o: 6ar+0s,

Par+0s 9an no+ * 9or9d +o n+r 0n+o a 9on+ra9+ 8r no a@r;n+ 0s ad *+8n +; as +o + 6r0n906a#+r;s and 9ond0+0on o: + 9on+ra9+ R6"*#09 v. P0#0660n Lon@ 0s+an9 T#6on Co., ! SCRA !%.

>0+ + a*ov o*srva+0ons, +r 0s no+0n@ ;or :or +0s Co"r+ +o do D96+ +o d0s;0ss + 6+0+0on.

ACCORINGLY, + 6+0+0on 0s r*$ d0s;0ssd. T a66a#d d90s0on o: + Co"r+ o: A66a#s 0sA((IRME,

SO ORERE.

Plana, Relova, !e la (uente and )lampay, JJ., concur.

"elencio-errera, J., took no part.

R6"*#09 o: + P0#0660nsSUPREME COURT

Man0#a

SECON IISION


28/106

G.R. No. 1'9()( August 1', 1994

GEORG GROT&A$N GM*$ + CO.,6+0+0onr,vs.

$ON. LUCIA IOLAGO ISNANI, Ps#"g &u#g, Rgo"!/ T!/ Cout, M!0!t, *. 59 ROMANA R.LANC$INE*RE !"# TEOFILO A. LANC$INE*RE, rs6ondn+s.

).". &ison, Jr. < )ssociates for petitioner.

Pedro '. 'aso for private respondents.

PUNO,J.:

P+0+0onr 0;6"@ns + d0s;0ssa# o: 0+s Co;6#a0n+ :or a s"; o: ;on$ *$ + rs6ondn+ "d@ :or #a91 o:"r0sd09+0on and #a91 o: 9a6a90+$ +o s".

T r9ords so8 +a+ 6+0+0onr 0s a ;"#+0na+0ona# 9o;6an$ or@an0d and D0s+0n@ "ndr + #a8s o: + (dra#R6"*#09 o: Gr;an$. On J"#$ , &'3, 6+0+0onr :0#d an a66#09a+0on, da+d J"#$ !, &'3, 180+ + S9"r0+0sand ED9an@ Co;;0ss0on SEC :or + s+a*#0s;n+ o: a r@0ona# or ara ad"ar+rs 0n + P0#0660ns,6"rs"an+ +o Prs0dn+0a# 9r No. !&. T a66#09a+0on 8as a66rovd *$ + =oard o: Invs+;n+s =OI onS6+;*r , &'3. Cons"n+#$, on S6+;*r !%, &'3, + SEC 0ss"d a Cr+0:09a+ o: R@0s+ra+0on andL09ns +o 6+0+0onr. (

Pr0va+ rs6ondn+ Ro;ana R. Lan90n*r 8as a sa#s r6rsn+a+0v o: 6+0+0onr :ro; &'3 +o ;0d-&''!. OnMar9 &!, &''!, s s9"rd a #oan o: +8n+$-:0v +o"sand 6sos P!B,%%%.%% :ro; 6+0+0onr. On Mar9 !

and J"n &%, &''!, s ;ad add0+0ona# 9as advan9s 0n + s"; o: +n +o"sand 6sos P&%,%%%.%%. O: ++o+a# a;o"n+, +8#v +o"sand on "ndrd svn+$ 6sos and +0r+$-svn 9n+avos P&!,&%.3 r;a0nd"n6a0d. s60+ d;and, 6r0va+ rs6ondn+ Ro;ana :a0#d +o s++# r o*#0@a+0on 80+ 6+0+0onr.

On J"#$ !!, &''!, 6r0va+ rs6ondn+ Ro;ana Lan90n*r :0#d 80+ + Ar*0+ra+0on =ran9 o: + Na+0ona#La*or R#a+0ons Co;;0ss0on NLRC 0n Man0#a, a Co;6#a0n+ :or 0##@a# s"s6ns0on, d0s;0ssa# and non-6a$;n+o: 9o;;0ss0ons a@a0ns+ 6+0+0onr. On A"@"s+ &, &''!, 6+0+0onr 0n +"rn :0#d a@a0ns+ 6r0va+ rs6ondn+ aCo;6#a0n+ :or da;a@s a;o"n+0n@ +o on "ndrd +8n+$ +o"sand 6sos P&!%,%%%.%% a#so 80+ + NLRCAr*0+ra+0on =ran9 Man0#a. 2T +8o 9ass 8r 9onso#0da+d.

On S6+;*r !, &''!, 6+0+0onr :0#d ano+r Co;6#a0n+ :or 9o##9+0on o: s"; o: ;on$ a@a0ns+ 6r0va+rs6ondn+s s6o"ss Ro;ana and To:0#o Lan90n*r 809 8as do91+d as C0v0# Cas No. '!-!4 and

ra::#d +o + sa#a o: rs6ondn+ "d@. Ins+ad o: :0#0n@ +0r Ans8r, 6r0va+ rs6ondn+s ;ovd +o d0s;0ss +Co;6#a0n+. T0s 8as o66osd *$ 6+0+0onr.

On 9;*r !&, &''!, rs6ondn+ "d@ 0ss"d + :0rs+ 0;6"@nd Ordr, @ran+0n@ + ;o+0on +o d0s;0ss. S#d, vi:>

J"r0sd09+0on ovr + s"*9+ ;a++r or na+"r o: + a9+0on 0s 9on:rrd *$ #a8 and no+ s"*9+ +o+ 80;s and 9a6r09s o: + 6ar+0s.


29/106

Undr Ar+09# !& o: + La*or Cod o: + P0#0660ns, + La*or Ar*0+rs sa## av or0@0na#and D9#"s0v "r0sd09+0on +o ar and d90d, 80+0n +0r+$ 3% 9a#ndar da$s a:+r +s"*;0ss0on o: + 9as *$ + 6ar+0s :or d90s0on, + :o##o80n@ 9ass 0nvo#v0n@ a## 8or1rs,8+r a@r09"#+"ra# or non-a@r09"#+"ra#)

4 9#a0;s :or a9+"a#, ;ora#, D;6#ar$ and o+r :or;s o: da;a@s ar0s0n@ :ro; an ;6#o$r-

;6#o$ r#a+0ons.

DDD DDD DDD

ED96+ 9#a0;s :or ;6#o$s 9o;6nsa+0on, so90a# s9"r0+$, ;d09ar and ;a+rn0+$ *n:0+s,a## o+r 9#a0;s ar0s0n@ :ro; ;6#o$r-;6#o$ r#a+0ons, 0n9#"d0n@ +os o: 6rsons 0ndo;s+09 or o"so#d srv09, 0nvo#v0n@ an a;o"n+ D9d0n@ :0v +o"sand 6sos PB,%%%.%%r@ard#ss o: 8+r or no+ a99o;6an0d 80+ a 9#a0; :or r0ns+a+;n+.

In 0+s 9o;6#a0n+, + 6#a0n+0:: 6+0+0onr r0n s1s +o r9ovr a##@d 9as advan9s ;ad *$d:ndan+ 6r0va+ rs6ondn+ r0n Ro;ana Lan90n*r 80# + #a++r 8as 0n + ;6#o$ o:+ :or;r. O*v0o"s#$ + sa0d 9as advan9s 8r ;ad 6"rs"an+ +o + ;6#o$r-;6#o$r#a+0ons06 *+8n + 6+0+0onr and + sa0d 6r0va+ rs6ondn+ and as s"9, 80+0n +or0@0na# and D9#"s0v "r0sd09+0on o: + Na+0ona# La*or R#a+0ons Co;;0ss0on.

A@a0n, 0+ 0s no+ d0s6"+d +a+ + Cr+0:09a+ o: R@0s+ra+0on and L09ns 0ss"d +o + 6+0+0onr*$ + S9"r0+0s and ED9an@ Co;;0ss0on 8as ;r#$ F:or + s+a*#0s;n+ o: a r@0ona# orara ad"ar+rs 0n + P0#0660ns, 6"rs"an+ +o Prs0dn+0a# 9r No. !& and 0+s0;6#;n+0n@ r"#s and r@"#a+0ons.F I+ dos no+ 0n9#"d a #09ns +o do *"s0nss 0n +P0#0660ns. Tr 0s no a##@a+0on 0n + 9o;6#a0n+ ;orovr +a+ 6+0+0onr 0s s"0n@ "ndr an0so#a+d +ransa9+0on. I+ ;"s+ * 9ons0drd +a+ "ndr S9+0on 4, R"# o: + Rv0sd R"#s o:Co"r+, :a9+s so80n@ + 9a6a90+$ o: a 6ar+$ +o s" or * s"d or + a"+or0+$ o: a 6ar+$ +o s" or* s"d 0n a r6rsn+a+0v 9a6a90+$ or + #@a# D0s+n9 o: an or@an0d asso90a+0on o: 6rsons+a+ 0s ;ad a 6ar+$ ;"s+ * avrrd. Tr 0s no avr;n+ 0n + 9o;6#a0n+ r@ard0n@6+0+0onrs 9a6a90+$ +o s" or * s"d.

(0na##$, 6+0+0onrs 9#a0; *0n@ 9#ar#$ 0n90dn+a# +o + o99"6a+0on or Dr90s o: rs6ondn+Ro;ana Lan90n*rs 6ro:ss0on, rs6ondn+ "s*and so"#d no+ * o0nd as 6ar+$d:ndan+. 4

On Mar9 , &''3, + rs6ondn+ "d@ 0ss"d a ;0n"+ Ordr dn$0n@ 6+0+0onrs Mo+0on :or R9ons0dra+0on.

P+0+0onr no8 ra0ss + :o##o80n@ ass0@n;n+s o: rrors)

I

THE TRIAL COURT GRAELY ERRE IN HOLING THAT THE REGULAR COURTSHAE NO JURISICTION OER ISPUTES =ET>EEN AN EMPLOYER AN ANEMPLOYEE INOLING THE APPLICATION PURELY O( THE GENERAL CIIL LA>.

II

THE TRIAL COURT GRAELY ERRE IN HOLING THAT PETITIONER HAS NOCAPACITY TO SUE AN =E SUE IN THE PHILIPPINES ESPITE THE (ACT THAT


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PETITIONER IS ULY LICENSE =Y THE SECURITIES AN ECHANGECOMMISSION TO SET UP AN OPERATE A REGIONAL OR AREA HEAUARTERS INTHE COUNTRY AN THAT IT HAS CONTINUOUSLY OPERATE AS SUCH (OR THELAST NINE ' YEARS.

III

THE TRIAL COURT GRAELY ERRE IN HOLING THAT THE ERRONEOUSINCLUSION O( THE HUS=AN IN A COMPLAINT IS A (ATAL E(ECT THAT SHALLRESULT IN THE OUTRIGHT ISMISSAL O( THE COMPLAINT.

I

THE TRIAL COURT GRAELY ERRE IN HOLING THAT THE HUS=AN IS NOTREUIRE =Y THE RULES TO =E JOINE AS A E(ENANT IN A COMPLAINTAGAINST THE >I(E.

Tr 0s ;r0+ +o + 6+0+0on.

(0rs+#$, + +r0a# 9o"r+ so"#d no+ av #d 0+s#: 80+o"+ "r0sd09+0on ovr C0v0# Cas No. '!-!4. I+ 0s +r" +a++ #oan and 9as advan9s so"@+ +o * r9ovrd *$ 6+0+0onr 8r 9on+ra9+d *$ 6r0va+ rs6ondn+ Ro;anaLan90n*r 80# s 8as s+0## 0n + ;6#o$ o: 6+0+0onr. Non+#ss, 0+ dos no+ :o##o8 +a+ Ar+09# !& o:+ La*or Cod 9ovrs +0r r#a+0ons06.

No+ vr$ d0s6"+ *+8n an ;6#o$r and ;6#o$ 0nvo#vs ;a++rs +a+ on#$ #a*or ar*0+rs and + NLRC9an rso#v 0n + Dr90s o: +0r ad"d09a+or$ or "as0-"d090a# 6o8rs. T "r0sd09+0on o: #a*or ar*0+rs and+ NLRC "ndr Ar+09# !& o: + La*or Cod 0s #0;0+d +o d0s6"+s ar0s0n@ :ro; an ;6#o$r-;6#o$r#a+0ons06 809 9an on#$ * rso#vd *$ r:rn9 +o + La*or Cod, o+r #a*or s+a+"+s, or +0r 9o##9+0v*ar@a0n0n@ a@r;n+. In +0s r@ard, 8 #d 0n + ar#0r 9as o:"olave "otor &ales, nc. vs. 'aron, &!'

SCRA 4B &'4, vi:)

=:or + na9+;n+ o: =P =#@. !! on J"n &, &'!, La*or Ar*0+rs, "ndr 6ara@ra6 B o:Ar+09# !& o: + La*or Cod ad "r0sd09+0on ovr Fa## o+r 9ass ar0s0n@ :ro; ;6#o$r-;6#o$ r#a+0on, "n#ss D6rss#$ D9#"dd *$ +0s Cod.F Evn +n, + 6r0n906a# :o##o8d*$ +0s Co"r+ 8as +a+, a#+o"@ a 9on+rovrs$ 0s *+8n an ;6#o$r and an ;6#o$, +La*or Ar*0+rs av no "r0sd09+0on 0: + La*or Cod 0s no+ 0nvo#vd. In"edina vs. Castro-*artolome, && SCRA B', %4 0n n@a+0n@ "r0sd09+0on o: + La*or Ar*0+r, a#+o"@ +6ar+0s 8r an ;6#o$r and +8o ;6#o$s, Mr. J"s+09 A*ad San+os s+a+d)

T 60vo+a# "s+0on +o O"r ;0nd 0s 8+r or no+ + La*or Cod as an$r#van9 +o + r#0:s so"@+ *$ 6#a0n+0::s. (or 0: + La*or Cod as no

r#van9, an$ d0s9"ss0on 9on9rn0n@ + s+a+"+s a;nd0n@ 0+ and 8+r orno+ +$ av r+roa9+0v ::9+ 0s "nn9ssar$.

DDD DDD DDD

And 0n S0n@a6or A0r#0ns L0;0+d vs. PaXo, &!! SCRA &, , + :o##o80n@ 8as sa0d)

S+a+d d0::rn+#$, 6+0+0onr s1s 6ro+9+0on "ndr + 90v0# #a8s and 9#a0;s no*n:0+s "ndr + La*or Cod. T 6r0;ar$ r#0: so"@+ 0s :or #0"0da+d


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da;a@s :or *ra9 o: a 9on+ra9+"a# o*#0@a+0on. T o+r 0+;s d;andd arno+ #a*or *n:0+s d;andd *$ 8or1rs @nra##$ +a1n 9o@n0an9 o: 0n #a*ord0s6"+s, s"9 as 6a$;n+ o: 8a@s, ovr+0; 9o;6nsa+0on or s6ara+0on 6a$.T 0+;s 9#a0;d ar + na+"ra# 9ons"n9s :#o80n@ :ro; *ra9 o: ano*#0@a+0on, 0n+r0ns09a##$ a 90v0# d0s6"+.

DDD DDD DDD

In &an "iguel Corporation vs. 1'RC, && SCRA &' &', 8 9r$s+a##0d + do9+r0ns s+ :or+ 0n +"edina, &ingapore )irlines, and"olave "otors 9ass, +"s)

. . . T 0;6or+an+ 6r0n906# +a+ r"ns +ro"@ +s +r 3 9ass 0s +a+ 8r + 9#a0; +o +6r0n906a# r#0: so"@+ 0s +o * rso#vd no+ *$ r:rn9 +o + La*or Cod or o+r #a*orr#a+0ons s+a+"+ or a 9o##9+0v *ar@a0n0n@ a@r;n+ *"+ *$ + @nra# 90v0# #a8, + "r0sd09+0onovr + d0s6"+ *#on@s +o + r@"#ar 9o"r+s o: "s+09 and no+ +o + La*or Ar*0+r and +NLRC. In s"9 s0+"a+0ons, rso#"+0ons o: + d0s6"+ r"0rs D6r+0s, no+ 0n #a*or ;ana@;n+r#a+0ons nor 0n 8a@ s+r"9+"rs and o+r +r;s and 9ond0+0ons o: ;6#o$;n+, *"+ ra+r 0n +a66#09a+0on o: + @nra# 90v0# #a8. C#ar#$, s"9 9#a0;s :a## o"+s0d + ara o: 9o;6+n9 or

D6r+0s ord0nar0#$ as9r0*d +o La*or Ar*0+rs and + NLRC and + ra+0ona# :or @ran+0n@"r0sd09+0on ovr s"9 9#a0;s +o +s a@n90s d0sa66ars.

C0v0# Cas No. '!-!4 0s a s0;6# 9o##9+0on o: a s"; o: ;on$ *ro"@+ *$ 6+0+0onr, as 9rd0+or, a@a0ns+6r0va+ rs6ondn+ Ro;ana Lan90n*r, as d*+or. T :a9+ +a+ +$ 8r ;6#o$r and ;6#o$ a+ + +0;o: + +ransa9+0on dos no+ n@a+ + 90v0# "r0sd09+0on o: + +r0a# 9o"r+. T 9as dos no+ 0nvo#v ad"d09a+0ono: a #a*or d0s6"+ *"+ r9ovr$ o: a s"; o: ;on$ *asd on o"r 90v0# #a8s on o*#0@a+0on and 9on+ra9+.

S9ond#$, + +r0a# 9o"r+ rrd 0n o#d0n@ +a+ 6+0+0onr dos no+ av 9a6a90+$ +o s" 0n + P0#0660ns. I+ 0s9#ar +a+ 6+0+0onr 0s a :or0@n 9or6ora+0on do0n@ *"s0nss 0n + P0#0660ns. P+0+0onr 0s 9ovrd *$ +O;n0*"s Invs+;n+ Cod o: &'. Sa0d #a8 d:0ns Fdo0n@ *"s0nss,F as :o##o8s)

. . . sa## 0n9#"d so#090+0n@ ordrs, 6"r9ass, srv09 9on+ra9+s, o6n0n@ o::09s, 8+r 9a##dF#0a0sonF o::09s or *ran9s a66o0n+0n@ r6rsn+a+0vs or d0s+r0*"+ors 8o ar do;090#d 0n +P0#0660ns or 8o 0n an$ 9a#ndar $ar s+a$ 0n + P0#0660ns :or a 6r0od or 6r0ods +o+a##0n@on "ndrd 0@+$ &% da$s or ;or 6ar+0906a+0n@ 0n + ;ana@;n+, s"6rv0s0on or 9on+ro#o: an$ do;s+09 *"s0nss :0r;, n+0+$ or 9or6ora+0on 0n + P0#0660ns, and an$ o+r a9+ or a9+s+a+ 0;6#$ a 9on+0n"0+$ o: 9o;;r90a# da#0n@s or arran@;n+s and 9on+;6#a+ +o +a+ D+n++ 6r:or;an9 o: a9+s or 8or1s, or + Dr90s o: so; o: + :"n9+0ons nor;a##$ 0n90dn+ +o,and 0n 6ro@rss0v 6ros9"+0on o:, 9o;;r90a# @a0n or o: + 6"r6os and o*9+ o: + *"s0nssor@an0a+0on. 5

Tr 0s no @nra# r"# or @ovrn0n@ 6r0n906# as +o 8a+ 9ons+0+"+s Fdo0n@F or Fn@a@0n@ 0nF or F+ransa9+0n@F

*"s0nss 0n + P0#0660ns. Ea9 9as ;"s+ * "d@d 0n + #0@+ o: 0+s 69"#0ar 90r9";s+an9s.

3

In + 9as a+*n9, 6+0+0onr dos no+ n@a@ 0n 9o;;r90a# da#0n@s or a9+0v0+0s 0n + 9o"n+r$ *9a"s 0+ 0s 6r9#"dd :ro;do0n@ so *$ P.. No. !&, "ndr 809 0+ 8as s+a*#0sd. )Non+#ss, 0+ as *n 9on+0n"o"s#$, s0n9 &'3,a9+0n@ as a s"6rv0s0on, 9o;;"n09a+0ons and 9oord0na+0on 9n+r :or 0+s o; o::09s a::0#0a+s 0n S0n@a6or, and0n + 6ro9ss as na;d 0+s #o9a# a@n+ and as ;6#o$d P0#0660n na+0ona#s #01 6r0va+ rs6ondn+ Ro;anaLan90n*r. (ro; +0s "n0n+rr"6+d 6r:or;an9 *$ 6+0+0onr o: a9+s 6"rs"an+ +o 0+s 6r0;ar$ 6"r6oss and:"n9+0ons as a r@0ona#/ara ad"ar+rs :or 0+s o; o::09, 0+ 0s 9#ar +a+ 6+0+0onr 0s do0n@ *"s0nss 0n +9o"n+r$. Morovr, 6r0va+ rs6ondn+s ar s+o66d :ro; assa0#0n@ + 6rsona#0+$ o: 6+0+0onr. So 8 #d 0n"errill 'ynch (utures, nc. vs. Court of )ppeals, !&& SCRA !4, 3 &''!)


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T r"# 0s +a+ a 6ar+$ 0s s+o66d +o 9a##n@ + 6rsona#0+$ o: a 9or6ora+0on a:+r av0n@a91no8#d@d + sa; *$ n+r0n@ 0n+o a 9on+ra9+ 80+ 0+. And + Fdo9+r0n o: s+o66# +o dn$9or6ora+ D0s+n9 a66#0s +o :or0@n as 8## as +o do;s+09 9or6ora+0onsF Fon 8o as da#+80+ a 9or6ora+0on o: :or0@n or0@0n as a 9or6ora+ n+0+$ 0s s+o66d +o dn$ 0+s 9or6ora+D0s+n9 and 9a6a90+$.F T 6r0n906# F80## * a66#0d +o 6rvn+ a 6rson 9on+ra9+0n@ 80+ a:or0@n 9or6ora+0on :ro; #a+r +a10n@ advan+a@ o: 0+s non9o;6#0an9 80+ + s+a+"+s 90:#$ 0n

9ass 8r s"9 6rson as r90vd + *n:0+s o: + 9on+ra9+, . . . C0+a+0ons o;0++d.

(0na##$, + +r0a# 9o"r+ rrd 8n 0+ d0s;0ssd C0v0# Cas No. '!-!4 on 8a+ 0+ :o"nd +o * + ;0so0ndr o:6r0va+ rs6ondn+ To:0#o Lan90n*r as 6ar+$ d:ndan+. I+ 0s a *as09 r"# +a+ F;0so0ndr or 6ar+0s 0s no+@ro"nd :or d0s;0ssa# o: an a9+0on.F8Morovr, + Ordr o: + +r0a# 9o"r+ 0s *asd on S9+0on 4, R"# 3 o: +Rv0sd R"#s o: Co"r+, 809 6rov0ds)

A ;arr0d 8o;an ;a$ no+ . . . * s"d a#on 80+o"+ o0n0n@ r "s*and, D96+ . . . 0: +#0+0@a+0on 0s 0n90dn+a# +o + 6ro:ss0on, o99"6a+0on or *"s0nss 0n 809 s 0s n@a@d,

>+r or no+ + s"*9+ #oan 8as 0n9"rrd *$ 6r0va+ rs6ondn+ as an 0n90dn+ +o r 6ro:ss0on, o99"6a+0onor *"s0nss 0s a "s+0on o: :a9+. In + a*sn9 o: r#van+ v0dn9, + 0ss" 9anno+ * rso#vd 0n a ;o+0on +o

d0s;0ss.

IN IE> >HEREO(, + 0ns+an+ P+0+0on 0s GRANTE. T Ordrs, da+d 9;*r !&, &''! and Mar9 ,&''3, 0n C0v0# Cas No. '!-!4 ar REERSE AN SET ASIE. T RTC o: Ma1a+0, =r. B', 0s r*$ordrd +o ar + r0ns+a+d 9as on 0+s ;r0+s. No 9os+s.

SO ORERE.

1arvasa, C.J., Padilla, Regalado and "endo:a, JJ., concur.


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ii

iii


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iv

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vii

viii


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x

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xii

An+a; Conso#0da+d vs. CA Cas 0@s+An+a; Conso#0da+d vs. Co"r+ o: A66a#sQGR L-&B!3, J"#$ 3&, &'(a9+s)On ' A6r0# &'&, S+o1#$ an Ca;6. In9. :0#d a 9o;6#a0n+ a@a0ns+ =anaa8 M0##0n@Cor6ora+0on, An+a;Conso#0da+d, In9., Ta;*"n+0n@ Trad0n@ Cor6ora+0on, A"rora Conso#0da+dS9"r0+0s and Invs+;n+Cor6ora+0on, and Un0+d Co9on"+ O0# M0##s, In9. Un09o; :or 9o##9+0on o: s"; o: ;on$. In 0+s 9o;6#a0n+,


40/106


41/106

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T +ransa9+0ons n+rd 0n+o *$ S+o1#$ 80+ Co;60#, An+a;, + a#. ar no+ a sr0s o: 9o;;r90a# da#0n@s809 s0@n0:$ an 0n+n+ on + 6ar+ o: S+o1#$ +o do *"s0nss 0n + P0#0660ns*"+ 9ons+0+"+ an 0so#a+d on809 dos no+ :a## "ndr + 9a+@or$ o: Fdo0n@ *"s0nss.F T on#$rason 8$ S+o1#$ n+rd 0n+o + s9ondand +0rd +ransa9+0ons 80+ Co;60#, An+a;, + a#. 8as*9a"s 0+ 8an+d +o r9ovr + #oss 0+ s"s+a0nd :ro; +:a0#"r o: Co;60#, An+a;, + a#. +o d#0vr + 9r"d 9o9on"+ o0# "ndr + :0rs+ +ransa9+0on and 0n ordr +o @0v

+ #a++r a 9an9 +o ;a1 @oodon +0r o*#0@a+0on. Ins+ad o: ;a10n@ an o"+r0@+ d;and on Co;60#, An+a;,+ a#., S+o1#$ o6+d +o+r$ +o 6"s +ro"@ 80+ + +ransa9+0on +o r9ovr + a;o"n+ o: US&%3,%%.%% 0+ #os+.T0sD6#a0ns 8$ 0n + s9ond +ransa9+0on, Co;60#, An+a;, + a#. 8r s"66osd +o *"$ *a91 + 9r"d9o9on"+o0# +$ so"#d av d#0vrd +o + rs6ondn+ 0n an a;o"n+ 809 80## arn + #a++r a6ro:0+ o:US&%3,%%.%%. >n +0s :a0#d + +0rd +ransa9+0on 8as n+rd 0n+o *$ + 6ar+0s8r*$ Co;60#, An+a;,+ a#. 8r s"66osd +o s## 9r"d 9o9on"+ o0# +o + rs6ondn+ a+ ad0s9o"n+d ra+, + +o+a# a;o"n+ o: s"9d0s9o"n+ *0n@ US&%3,%%.%%. Un:or+"na+#$, Co;60#, An+a;, + a#. :a0#d +o d#0vr a@a0n, 6ro;6+0n@ S+o1#$+o :0# + s"0+ *#o8. (ro; +s :a9+s a#on,0+ 9an * dd"9d +a+ 0n ra#0+$, +r 8as on#$ on a@r;n+*+8n Co;60#, An+a;, + a#. andS+o1#$ and +a+ 8as + d#0vr$ *$ + :or;r o: B%% #on@ +ons o: 9r"d9o9on"+ o0# +o + #a++r,8o 0n +"rn, ;"s+ 6a$ + 9orrs6ond0n@ 6r09 :or + sa;. T +r s;0n@#$d0::rn+ +ransa9+0ons 8r n+rd 0n+o *$ + 6ar+0s on#$ 0n an ::or+ +o :"#:0## + *as09 a@r;n+ and 0nno8a$ 0nd09a+ an 0n+n+ on + 6ar+ o: S+o1#$ +o n@a@ 0n a 9on+0n"0+$ o: +ransa9+0ons 80+ Co;60#, An+a;, +

a#. 809 80## 9a+@or0 0+ as a :or0@n 9or6ora+0on do0n@ *"s0nss 0n + P0#0660ns.S+o1#$, *0n@ a :or0@n9or6ora+0on no+ do0n@ *"s0nss 0n + P0#0660ns, dos no+ nd +o o*+a0n a#09ns +o do *"s0nss 0n ordr +o av+ 9a6a90+$ +o s".

xiii


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0@s+d *$) Jr A*"#

S"*9+) Ins"ran9 La8

T0+#) Avon Ins"ran9 vs CA

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- Y"6an@9o +n :0#d a 9o##9+0on s"0+ on + a*ov 6+0+0onrs

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av s"*;0++d +o + "r0sd09+0on o: + 9o"r+.

ISSUE) >ON + 0n+rna+0ona# r0ns"rrs ar


55/106

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o NO a##@a+0on or d;ons+ra+0on o: + D0s+n9 o: 6+0+0onrs7 do;s+09 a@n+ *"+ avrs s0;6#$

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o P+0+0onrs ad no+ 6r:or;d an$ a9+ 809 8o"#d @0v + @nra# 6"*#09 + 0;6rss0on +a+ 0+

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+o "r0sd09+0on

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56/106


57/106

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xxxvi


58/106

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59/106

xxxviii

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62/106

COLUM*IA PICTURES INC. CAQ!3 SCRA 3 &''4N!tu) P+0+0ons :or rv08 on 9r+0orar0 o: + d90s0on o: + CA.Po""t) J. 0+"@F!ts6

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63/106

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8+r +r 8as "na"+or0d +rans:r, d0r9+#$ or 0nd0r9+#$, o: a so"nd r9ord0n@ or ;o+0on609+"r or o+r a"d0o v0s"a# 8or1 +a+ as *n r9ordd

P+0+0ons dn0d.

SECON IISION

QG.R. No. '4'%. Ma$ &B,&''

LITTON MILLS INC.,petitioner, vs. COURT O( APPEALS and GELHAAR UNI(ORM COMPANY, INC.,

respondents.

SYLLA=US

1. REMEDIAL LAW CIIL PROCEDURE SUMMONS A COURT NEED NOT GO *E>OND T$E

ALLEGATIONS IN T$E COMPLAINT TO DETERMINE W$ET$ER OR NOT A DEFENDANT

FOREIGN CORPORATION IS DOING *USINESS FOR T$E PURPOSE OF RULE 14, SECTION 14

CASE AT *AR. ?A 9o"r+ nd no+ @o *$ond + a##@a+0ons 0n + 9o;6#a0n+ +o d+r;0n 8+r or no+ ad:ndan+ :or0@n 9or6ora+0on 0s do0n@ *"s0nss :or + 6"r6os o: R"# &4, &4. In + 9as a+ *ar, + a##@a+0on+a+ E;60r, :or and 0n *a#: o: G#aar, ordrd ,% dons o: so99r rs$s :ro; L0++on and :or +0s6"r6os G#aar 9a"sd + o6n0n@ o: an 0rrvo9a*# #++r o: 9rd0+ 0n :avor o: L0++on 0s a s"::090n+ a##@a+0on+a+ G#aar 8as do0n@ *"s0nss 0n + P0#0660ns.

(. ID. ID. ID. SERICE OF SUMMONS ALID IN CASE AT *AR. ?In a99ordan9 80+ R"# &4, &4,srv09 "6on G#aar 9o"#d * ;ad 0n +r 8a$s) & *$ srv0n@ "6on + a@n+ ds0@na+d 0n a99ordan9 80+#a8 +o a996+ srv09 o: s";;ons ! 0: +r 0s no rs0dn+ a@n+, *$ srv09 on + @ovrn;n+ o::090a#ds0@na+d *$ #a8 +o +a+ ::9+ and 3 *$ srv0n@ on an$ o::09r or a@n+ o: sa0d 9or6ora+0on 80+0n +P0#0660ns. Hr, srv09 8as ;ad +ro"@ G#aar7s a@n+, + E;60r Sa#s P0#0660ns Cor6. Tr 8as,+r:or, a va#0d srv09 o: s";;ons on G#aar, s"::090n+ +o 9on:r on + +r0a# 9o"r+ "r0sd09+0on ovr +6rson o: G#aar.


64/106

APPEARANCES O( COUNSEL

J"an0+as, Pr, Gona#s, =o#os 2 Asso90a+s :or 6+0+0onr.

S$906 Sa#aar Hrnand 2 Ga+;a0+an :or 6r0va+ rs6ondn+.

E C I S I O N

MENOA,J.)

T0s 0s a 6+0+0on +o rv08 + d90s0on o: + Co"r+ o: A66a#s ann"##0n@ + ordr o: + R@0ona# Tr0a# Co"r+809 dn0d 6r0va+ rs6ondn+7s 6#a +a+ 0+ 0s a :or0@n 9or6ora+0on no+ do0n@ *"s0nss 0n + P0#0660ns and+r:or no+ s"*9+ +o + "r0sd09+0on o: P0#0660n 9o"r+s.

P+0+0onr L0++on M0##s, In9. L0++on n+rd 0n+o an a@r;n+ 80+ E;60r Sa#s P0#0660ns Cor6ora+0onE;60r, as #o9a# a@n+ o: 6r0va+ rs6ondn+ G#aar Un0:or; Co;6an$ G#aar, a 9or6ora+0on or@an0d"ndr + #a8s o: + Un0+d S+a+s, 8r*$ L0++on a@rd +o s"66#$ G#aar ,% dons o: so99r rs$s.

T a@r;n+ s+06"#a+d +a+ * :or 0+ 9o"#d 9o##9+ :ro; + *an1 on + #++r o: 9rd0+, L0++on ;"s+ 6rsn+ an0ns69+0on 9r+0:09a+ 0ss"d *$ G#aar7s a@n+ 0n + P0#0660ns, E;60r Sa#s, +a+ + @oods 8r 0nsa+0s:a9+or$ 9ond0+0on.

L0++on sn+ :o"r s06;n+s +o+a##0n@ 4,% dons o: + so99r rs$s *+8n 9;*r ! and 9;*r 3%,&'3. A :0:+ s06;n+, 9ons0s+0n@ o: !,&&% dons o: + rs$s, 8as 0ns69+d *$ E;60r :ro; Jan"ar$ ' +oJan"ar$ &', &'4, *"+ E;60r r:"sd +o 0ss" + r"0rd 9r+0:09a+ o: 0ns69+0on.

A##@0n@ +a+ E;60r7s r:"sa# +o 0ss" a 9r+0:09a+ 8as 80+o"+ va#0d rason, L0++on :0#d a 9o;6#a0n+ 80+ +R@0ona# Tr0a# Co"r+ o: Pas0@ =ran9 &B on Jan"ar$ !3,&'4, :or s690:09 6r:or;an9. L0++on a##@d +a+"ndr + +r;s o: + #++r o: 9rd0+, + @oods so"#d * s066d no+ #a+r +an Jan"ar$ 3%, &'4 +a+ +vss# s+06"#a+d +o 9arr$ + s06;n+ 8as s9d"#d +o r90v + 9ar@o on#$ on Jan"ar$ !, &'4 and +a+ +

#++r o: 9rd0+ 0+s#: 8as d" +o D60r on (*r"ar$ &4, &'4. L0++on so"@+ + 0ss"an9 o: a 8r0+ o: 6r#0;0nar$;anda+or$ 0n"n9+0on +o 9o;6# E;60r +o 0ss" + 0ns69+0on 9r+0:09a+ 9ovr0n@ + !,&&% don rs$s and+ r9ovr$ o: 9o;6nsa+or$ and D;6#ar$ da;a@s, 9os+s, a++orn$7s :s and o+r "s+ and "0+a*# r#0:.

T +r0a# 9o"r+ 0ss"d + 8r0+ on Jan"ar$ !B, &'4. T nD+ da$, E;60r 0ss"d + 0ns69+0on 9r+0:09a+, so +a++ 9ar@o 8as s066d on +0;.

On (*r"ar$ , &'4, A++$. R;0 Nova# :0#d 0n *a#: o: + d:ndan+s a


65/106

srvd "ndr R"# &4, &4.

I+ #0180s dn0d + a"+or0+$ o: A++$. Nova# +o a66ar :or G#aar and 9on+ndd +a+ + ans8r :0#d *$ A++$.Nova# on J"n &B, &'4 9o"#d no+ *0nd G#aar and 0+s :0#0n@ d0d no+ a;o"n+ +o G#aar7s s"*;0ss0on +o +"r0sd09+0on o: + 9o"r+.

L0++on o66osd + ;o+0on. On + o+r and, E;60r ;ovd +o d0s;0ss on + @ro"nd o: :a0#"r o: +9o;6#a0n+ +o s+a+ a 9a"s o: a9+0on s0n9 + 9o;6#a0n+ a##@d +a+ E;60r on#$ a9+d as a@n+ o: G#aar +a+0+ 8as ;ad 6ar+$-d:ndan+ on#$ :or + 6"r6os o: s9"r0n@ + 0ss"an9 o: an 0ns69+0on 9r+0:09a+ and +a+ 0+ad a#rad$ 0ss"d s"9 9r+0:09a+ and + s06;n+ ad a#rad$ *n s066d on +0;.

(or 0s 6ar+, A++$. R;0 Nova# 9#a0;d +a+ ad *n a"+or0d *$ G#aar +o a66ar :or 0+ 0n + 9as +a+ ad 0n :a9+ @0vn #@a# adv09 +o E;60r and 0s adv09 ad *n +rans;0++d +o G#aar +a+ G#aar ad*n :"rn0sd a 9o6$ o: + ans8r +a+ G#aar dn0d 0s a"+or0+$ on#$ on 9;*r o: &'4 and +a+ +*#a+d r6"d0a+0on o: 0s a"+or0+$ 9o"#d * on#$ an a:+r+o"@+ *9a"s o: 6ro*#;s 809 ad dv#o6d*+8n G#aar and E;60r. G#aar r:"sd +o 6a$ E;60r :or 0+s srv09s as a@n+. Nvr+#ss, A++$.Nova# 80+dr8 0s a66aran9 80+ rs69+ +o G#aar.

On S6+;*r !4, &', + +r0a# 9o"r+ 0ss"d an ordr dn$0n@ :or #a91 o: ;r0+ G#aar7s ;o+0on +o d0s;0ss and+o "as + s";;ons. I+ #d +a+ G#aar 8as do0n@ *"s0nss 0n + P0#0660ns, and +a+ + srv09 o:s";;ons on G#aar 8as +r:or va#0d. G#aar :0#d a ;o+0on :or r9ons0dra+0on, *"+ 0+s ;o+0on 8as dn0d.

G#aar +n :0#d a s690a# 90v0# a9+0on o: 9r+0orar0 80+ + Co"r+ o: A66a#s, 809 on A"@"s+ !%, &''%, s+as0d + ordrs o: + +r0a# 9o"r+. T a66##a+ 9o"r+ #d +a+ 6roo: +a+ G#aar 8as do0n@ *"s0nss 0n +P0#0660ns so"#d av *n 6rsn+d *9a"s, "ndr + do9+r0n o:Pacific "icronisian, +0s 0s a 9ond0+0onsine 7ua non :or + srv09 o: s";;ons "ndr R"# &4, &4 o: + R"#s o: Co"r+, and

+a+ 0+ 8as rror :or + +r0a# 9o"r+ +o r#$ on + ;r a##@a+0ons o: + 9o;6#a0n+.

T a66##a+ 9o"r+ #d +a+ n0+r d0d + +r0a# 9o"r+ a9"0r "r0sd09+0on ovr G#aar +ro"@ vo#"n+ar$s"*;0ss0on *9a"s + a"+or0+$ o: A++$. Nova# +o r6rsn+ G#aar ad *n "s+0ond. P"rs"an+ +o R"# &3,!&, + +r0a# 9o"r+ so"#d av r"0rd A++$. Nova# +o 6rov 0s a"+or0+$.

Cons"n+#$, + a66##a+ 9o"r+ ordrd + +r0a# 9o"r+ +o 0ss" an8 s";;ons +o * srvd on E;60r Sa#sP0#0660ns Cor6ora+0on, a:+r + a##@a+0on 0n + 9o;6#a0n+ +a+ G#aar 8as do0n@ *"s0nss 0n + P0#0660nsad *n s+a*#0sd. Hn9 +0s 6+0+0on.

L0++on 9on+nds +a+ "r0sd09+0on ovr G#aar 8as a9"0rd *$ + +r0a# 9o"r+ *$ + srv09 o: s";;ons +ro"@G#aar7s a@n+ and, a+ an$ ra+, *$ + vo#"n+ar$ a66aran9 o: A++$. R;0 Nova# as 9o"ns# o: G#aar.

> s"s+a0n 6+0+0onr7s 9on+n+0on *asd on + :0rs+ @ro"nd, na;#$, +a+ + +r0a# 9o"r+ a9"0rd "r0sd09+0on

ovr G#aar *$ srv09 o: s";;ons "6on 0+s a@n+ 6"rs"an+ +o R"# &4, &4.

(irst. T a66##a+ 9o"r+ 0nvo1d + r"#0n@ 0nPacific "icronisian, 0n 809 0+ 8as s+a+d +a+ + :a9+ o: do0n@*"s0nss ;"s+ :0rs+ * s+a*#0sd *:or s";;ons 9an * srvd 0n a99ordan9 80+ R"# &4, &4. T Co"r+ o:A66a#s "o+d + :o##o80n@ 6or+0on o: + o60n0on 0n +a+ 9as)

T a*ov s9+0on Qr:rr0n@ +o R"# &4, S9+0on &4 6rov0ds :or +r ;ods o: ::9+0n@ srv09 "6on a 6r0va+9or6ora+0on, na;#$) Qn";ra+s + +r ;ods o: srv09 o: s";;ons. ="+, 0+ so"#d * no+d, 0n ordr +a+srv09 ;a$ * ::9+d 0n + ;annr a*ov s+a+d,said section also re7uires that the foreign corporation be


66/106

one hich is doing business in the Philippines. T0s 0s asine 7ua non r"0r;n+. 4his fact must first beestablished in order that summons can be made and jurisdiction ac7uired. I+a#09s *$ + Co"r+ o: A66a#s!

In + #a+r 9as o: S0@n+09s Cor6ora+0on v. Co"r+ o: A66a#s,3 o8vr, 8 9#ar0:0d + o#d0n@ 0n Pa90:09M09ron0s0an, +"s)

T 6+0+0onr o60ns +a+ + 6ras,


67/106

4hird. On + "s+0on, o8vr, o: 8+r + a66aran9 o: A++$. Nova# 0n *a#: o: G#aar 8as *0nd0n@ on+ #a++r, 8 o#d +a+ + Co"r+ o: A66a#s 9orr9+#$ r"#d +a+ 0+ 8as no+.

A++$. Nova# ad;0+s +a+ 8as no+ a66o0n+d *$ G#aar as 0+s 9o"ns#. >a+ 9#a0;s 0s s0;6#$ +a+ G#aar1n8 o: + :0#0n@ o: + 9as 0n + +r0a# 9o"r+ and o: 0s r6rsn+a+0on *"+ G#aar d0d no+ o*9+. A++$. Nova#9on+nds +a+ +r 8as +"s a +a90+ 9on:0r;a+0on o: 0s a"+or0+$.

G#aar 9#a0;s, o8vr, +a+ 0+ 8as on#$ so;+0; 0n 9;*r, &''4 8n 0+ :o"nd o"+ +a+ + ans8r 809A++$. Nova# ad :0#d 0n J"n 8as a#so ;ad 0n 0+s *a#:. G#aar 0n :a9+ sn+ a +#D ;ssa@ da+d Jan"ar$ &B,&'B +o 0+s 9o"ns#, + S$906 #a8 :0r;, s+a+0n@

>E NEER AUTHORIE THE RETENTION O( MR. NOAL ON OUR =EHAL(. >E HAE NEERECHANGE CORRESPONENCE NOR HA ANY TELEPHONE CONERSATIONS >ITH HIM REANY ASPECT O( THIS CASE, INCL. HIS (EES. >E ARE TOL THAT HE HAS (ILE AN ANS>ER TOLTN7S L0++on7s COMPLT. PURPORTELY ON OUR =EHAL( =UT HE HAS NEER ISCUSSE THATANS>ER >ITH US NOR EEN SENT US A RA(T OR THE (INAL ERSION O( SUCH ANS>ER. >EARE SENING S>ORN A((IAITS TO THIS E((ECT =Y COURIER.

A++$. Nova# as no+ dn0d an$ o: +s s+a+;n+s. H 9#a0;s +a+ + adv0sor$ o60n0ons ad rndrd 0n +9as 8as sn+ +o G#aar *$ + 6rs0dn+ o: E;60r, Eno9 C0", and +a+ 8as 0n:or;d *$ C0" +a+G#aar ad *n adv0sd on a## dv#o6;n+s 0n + 9as and + n9ss0+$ o: :0#0n@ an ans8r, and +a+ a 9o6$o: + ans8r ad :0#d 8as :"rn0sd G#aar.

A## +0s 0s, o8vr, ;r#$ arsa$. Nova# dos no+ 9#a0; +a+ vr d0r9+#$ 9on:rrd 80+ G#aar r@ard0n@+ 9as. Tr 0s no v0dn9 +o so8 +a+ no+0:0d G#aar o: 0s a66aran9 0n 0+s *a#:, or +a+ :"rn0sd G#aar 80+ 9o60s o: 6#ad0n@s or + ans8r 809 :0#d 0n 0+s *a#:.

No vo#"n+ar$ a66aran9 *$ G#aar 9an, +r:or, * 0n:rrd :ro; + a9+s o: A++$. Nova#. Nor 9an A++$.Nova#7s r6rsn+a+0ons 0n + ans8r 9ons0drd *0nd0n@ on G#aar. G#aar so"#d * a##o8d a n8 6r0od:or :0#0n@ 0+s o8n ans8r.

W$EREFORE, + d90s0on o: + Co"r+ o: A66a#s 0s REERSE. T ordr o: + +r0a# 9o"r+ dn$0n@ +;o+0on +o d0s;0ss 0s r*$ REINSTATE, 80+ + MOI(ICATION +a+ G#aar 0s @0vn a n8 6r0od o: +n&% da$s :or + 6"r6os o: :0#0n@ 0+s ans8r.

SO ORERE.

R@a#ado Ca0r;an, Ro;ro, P"no, and Torrs, Jr., JJ., 9on9"r.


68/106


69/106


70/106

non9o;6#0an9 80+ + s+a+"+s, 90:#$ 0n 9ass 8r s"9 6rson as r90vd + *n:0+s o: + 9on+ra9+,

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8r + s+a+"+ dos no+ 6rov0d +a+ + 9on+ra9+ sa## * vo0d, *"+ ;r#$ :0Ds a s690a# 6na#+$ :or v0o#a+0on

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R6"*#09 o: + P0#0660nsSUPREME COURT

Man0#aTHIR IISION

G.R. No. 3195' St:= (8, 199'


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DDD DDD DDD

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DDD DDD DDD

4 O6n0n@ o::09s 8+r 9a##d F#0a0sonF o::09s, a@n90s or *ran9s, "n#ss 6rovdo+r80s.


81/106

DDD DDD DDD

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Conflicts Cases Fpr 2015 1st Week

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