UNIVERSAL FOOD CORPORATION VS. CA 33 SCRA 1 FACTS: This is a petition for ertiorari !

" the UFC a#ainst the CA $e ision of Fe!r%ar" 13& 1'() $e *arin# the +ILL OF ASSI,N-ENT res in$e$& or$erin# UFC to ret%rn to -a#$a*o Fran is o his -afran sa% e tra$e.ar/ an$ to pa" his .onth*" sa*ar" of P300.00 fro. De . 1& 1'(0 %nti* the ret%rn to hi. of sai$ tra$e.ar/ an$ for.%*a. In 1'3)& p*aintiff -a#$a*o V. Fran is o& Sr. $is o1ere$ a for.%*a for the .an%fa t%re of a foo$ seasonin# 2sa% e3 $eri1e$ fro. !anana fr%its pop%*ar*" /no4n as -AFRAN sa% e. It 4as %se$ o..er ia**" sin e 1'56& an$ in the sa.e "ear p*aintiff re#istere$ his tra$e.ar/ in his na.e as o4ner an$ in1entor 4ith the +%rea% of Patents. 7o4e1er& $%e to *a / of s%ffi ient apita* to finan e the e8pansion of the !%siness& in 1'(0& sai$ p*aintiff se %re$ the finan ia* assistan e of Tirso T. Re"es 4ho& after a series of ne#otiations& for.e$ 4ith others $efen$ant Uni1ersa* Foo$ Corporation e1ent%a**" *ea$in# to the e8e %tion on -a" 11& 1'(0 of the afore9%ote$ :+i** of Assi#n.ent: 2E8hi!it A or 13. On -a" 31& 1'(0& -a#$a*o Fran is o entere$ into ontra t 4ith UFC stip%*atin# a.on# other thin#s that he !e the Chief Che.ist an$ Se on$ Vi e;Presi$ent of UFC an$ sha** ha1e a!so*%te ontro* an$ s%per1ision o1er the *a!orator" assistants an$ personne* an$ in the p%r hase an$ safe/eepin# of the he.i a*s %se$ in the preparation of sai$ -afran sa% e an$ that sai$ positions are per.anent in nat%re. In *ine 4ith the ter.s an$ on$itions of the +i** of Assi#n.ent& -a#$a*o Fran is o 4as appointe$ Chief Che.ist 4ith a sa*ar" of P300.00 a .onth. -a#$a*o Fran is o /ept the for.%*a of the -afran sa% e se ret to hi.se*f. Thereafter& ho4e1er& $%e to the a**e#e$ s ar it" an$ hi#h pri es of ra4 .ateria*s& on No1e.!er 6)& 1'(0& Se retar";Treas%rer Ciria o L. $e ,%<.an of UFC iss%e$ a -e.oran$%. $%*" appro1e$ !" the Presi$ent an$ ,enera* -ana#er Tirso T. Re"es that on*" S%per1isor Ri ar$o Fran is o sho%*$ !e retaine$ in the fa tor" an$ that the sa*ar" of p*aintiff -a#$a*o V. Fran is o& Sr.& sho%*$ !e stoppe$ for the ti.e !ein# %nti* the orporation sho%*$ res%.e its operation. On De e.!er 3& 1'(0& Presi$ent an$ ,enera* -ana#er Tirso T. Re"es& iss%e$ a .e.oran$%. to Vi toriano Fran is o or$erin# hi. to report to the fa tor" an$ pro$% e :-afran Sa% e: at the rate of not *ess than 100 ases a $a" so as to ope 4ith the or$ers of the orporation=s 1ario%s $istri!%tors an$ $ea*ers& an$ 4ith instr% tions to ta/e on*" the ne essar" $ai*" e.p*o"ees 4itho%t e.p*o"in# per.anent e.p*o"ees. A#ain& on De e.!er (& 1'(1& another .e.oran$%. 4as iss%e$ !" the sa.e Presi$ent an$ ,enera* -ana#er instr% tin# the Assistant Chief Che.ist Ri ar$o Fran is o& to re a** a** $ai*" e.p*o"ees 4ho are onne te$ in the pro$% tion of -afran Sa% e an$ a*so so.e a$$itiona* $ai*" e.p*o"ees for the pro$% tion of Por/" Pops. On De e.!er 6'& 1'(0& another .e.oran$%. 4as iss%e$ !" the Presi$ent an$ ,enera* -ana#er instr% tin# Ri ar$o Fran is o& as Chief Che.ist& an$ Porfirio >arra#a& as A tin# S%perinten$ent& to pro$% e -afran Sa% e an$ Por/" Pops in f%** s4in# startin# ?an%ar" 6& 1'(1 4ith f%rther instr% tions to hire $ai*" *a!orers in or$er to ope 4ith the f%** !*ast operation. -a#$a*o V. Fran is o& Sr. re ei1e$ his sa*ar" as Chief Che.ist in the a.o%nt of P300.00 a .onth on*" %nti* his ser1i es 4ere ter.inate$ on No1e.!er 30& 1'(0. On ?an%ar" ' an$ 1(& 1'(1& UFC& a tin# thr% its Presi$ent an$ ,enera* -ana#er& a%thori<e$ Porfirio >arra#a an$ Pa%*a $e +a %*a to *oo/ for a !%"er of the orporation in *%$in# its tra$e.ar/s& for.%*a an$ assets at a pri e of not *ess than P300&000.00. D%e to these s% essi1e .e.oran$a& 4itho%t p*aintiff -a#$a*o V. Fran is o& Sr. !ein# re a**e$ !a / to 4or/& he fi*e$ the present a tion on Fe!r%ar" 15& 1'(1. Then in a *etter $ate$ -ar h 60& 1'(1& UFC re9%este$ sai$ p*aintiff to report for $%t"& !%t the *atter $e *ine$ the re9%est !e a%se the present a tion 4as a*rea$" fi*e$ in o%rt. ISSUES:

1. @as the +i** of Assi#n.ent rea**" one that in1o*1es transfer of the for.%*a for -afran sa% e itse*fA 6. @as petitionerBs ontention that -a#$a*o Fran is o is not entit*e$ to res ission 1a*i$A RULIN,: 1. No. Certain pro1isions of the !i** 4o%*$ *ea$ one to !e*ie1e that the for.%*a itse*f 4as transferre$. To 9%ote& Cthe respon$ent patentee :assi#n& transfer an$ on1e" a** its propert" ri#hts an$ interest o1er sai$ -afran tra$e.ar/ an$ for.%*a for -AFRAN SAUCE %nto the Part" of the Se on$ Part&: an$ the *ast para#raph states that s% h :assi#n.ent& transfer an$ on1e"an e is a!so*%te an$ irre1o a!*e 2an$3 in no ase sha** the PARTD OF T7E First Part as/& $e.an$ or s%e for the s%rren$er of its ri#hts an$ interest o1er sai$ -AFRAN tra$e.ar/ an$ .afran for.%*a.: C7o4e1er& a per epti1e ana*"sis of the entire instr%.ent an$ the *an#%a#e e.p*o"e$ therein 4o%*$ *ea$ one to the on *%sion that 4hat 4as a t%a**" e$e$ an$ transferre$ 4as on*" the %se of the -afran sa% e for.%*a. This 4as the pre ise intention of the parties.E The SC ha$ the fo**o4in# reasons to !a / %p the a!o1e on *%sion. First& ro"a*t" 4as pai$ !" UFC to -a#$a*o Fran is o. Se on$& the for.%*a of sai$ -afran sa% e 4as ne1er $is *ose$ to an"!o$" e*se. Thir$& the +i** a /no4*e$#e$ the fa t that %pon $isso*%tion of sai$ Corporation& the patentee ri#hts an$ interests of sai$ tra$e.ar/ sha** a%to.ati a**" re1ert !a / to -a#$a*o Fran is o. Fo%rth& para#raph 3 of the +i** $e *are$ on*" the transfer of the %se of the -afran sa% e an$ not the for.%*a itse*f 4hi h 4as a$.itte$ !" UFC in its ans4er. Fifth& the fa ts of the ase %n$enia!*" sho4 that 4hat 4as transferre$ 4as on*" the %se. Fina**"& o%r Ci1i* Co$e a**o4s on*" Cthe *east trans.ission of ri#ht& hen e& 4hat !etter 4a" is there to sho4 the *east trans.ission of ri#ht of the transfer of the %se of the transfer of the for.%*a itse*f.E 6. No. PetitionerBs ontention that -a#$a*o Fran is oBs petition for res ission sho%*$ !e $enie$ !e a%se %n$er Arti *e 13)3 of the Ci1i* Co$e of the Phi*ippines res ission an not !e $e.an$e$ e8 ept 4hen the part" s%fferin# $a.a#e has no other *e#a* .eans to o!tain reparation& 4as of no .erit !e a%se Cit is pre$i ate$ on a fai*%re to $istin#%ish !et4een a res ission for !rea h of ontra t %n$er Arti *e 11'1 of the Ci1i* Co$e an$ a res ission !" reason of *esion or e ono.i preF%$i e& %n$er Arti *e 13)1& et se9.E This 4as a ase of re ipro a* o!*i#ation. Arti *e 11'1 .a" !e s anne$ 4itho%t $is *osin# an"4here that the a tion for res ission there%n$er 4as s%!or$inate$ to an"thin# other than the %*pa!*e !rea h of his o!*i#ations !" the $efen$ant. 7en e& the reparation of $a.a#es for the !rea h 4as p%re*" se on$ar". Si.p*" p%t& %n*i/e Art. 13)3& Art. 11'1 a**o4s !oth the res ission an$ the pa".ent for $a.a#es. Res ission is not #i1en to the part" as a *ast resort& hen e& it is not s%!si$iar" in nat%re.