Narratives (Berne Guerrero)

t%e transactions entered into +' Tan on its +e%alf"

%ssue [2#$ )%et%er t%e foundation a-e Tan an apparent aut%orit' to deal 3it% t%e Ban:"
&eld [2#$ 6er its Secretar'2s Certificate, t%e 0oundation %ad i-en its 6resident, Tan, ostensi+le and apparent
aut%orit' to inter alia deal 3it% t%e Ban:" Accordinl', t%e 0oundation is estopped from ,uestionin Tan2s
aut%orit' to o+tain t%e su+Iect loans from t%e respondent Ban:" $t is a familiar doctrine t%at if a corporation
:no3inl' permits one of its officers, or an' ot%er aent, to act 3it%in t%e scope of an apparent aut%orit', it
%olds %im out to t%e pu+lic as possessin t%e po3er to do t%ose actsL and t%us, t%e corporation 3ill, as aainst
an'one 3%o %as in ood fait% dealt 3it% it t%rou% suc% aent, +e estopped from den'in t%e aent2s
aut%orit'"
4. Nielson > Co. %nc. vs. *e-anto Consolidated 'inin( Co. [GR *)21001 2/ 2ecem+er 110/#
%n &anc, Galdivar (J): ( concur, 4 too* no art
Facts$ +D> E5)1(A1, 1< Dece#.er 1@((F Galdivar (J): ( concur, ) too* no art, An operatin areement 3as
e?ecuted +efore )orld )ar $$ (on 35 Januar' 1.38) +et3een !ielson K Co" $nc" and t%e &epanto
Consolidated (inin Co" 3%ere+' t%e former operated and manaed t%e minin properties o3ned +' t%e
latter for a manaement fee of 61,955"55 a mont% and a 15H participation in t%e net profits resultin from t%e
operation of t%e minin properties, for a period of 9 'ears" $n 1.A5, a dispute arose reardin t%e computation
of t%e 15H s%are of !ielson in t%e profits" T%e Board of *irectors of &epanto, reali>in t%at t%e mec%anics of
t%e contract 3as unfair to !ielson, aut%ori>ed its 6resident to enter into an areement 3it% !ielson modif'in
t%e pertinent pro-ision of t%e contract effecti-e 1 Januar' 1.A5 in suc% a 3a' t%at !ielson s%all recei-e (1)
15H of t%e di-idends declared and paid, 3%en and as paid, durin t%e period of t%e contract and at t%e end of
eac% 'ear, (1) 15H of an' depletion reser-e t%at ma' +e set up, and (3) 15H of an' amount e?pended durin
t%e 'ear out of surplus earnins for capital account" $n t%e latter part of 1.A1, t%e parties areed to rene3 t%e
contract for anot%er period of 9 'ears, +ut in t%e meantime, t%e 6acific )ar +ro:e out in *ecem+er 1.A1" $n
Januar' 1.A1 operation of t%e minin properties 3as disrupted on account of t%e 3ar" $n 0e+ruar' 1.A1, t%e
mill, po3er plant, supplies on %and, e,uipment, concentrates on %and and mines, 3ere destro'ed upon orders
of t%e @nited States Arm', to pre-ent t%eir utili>ation +' t%e in-adin Japanese Arm'" T%e Japanese forces
t%ereafter occupied t%e minin properties, operated t%e mines durin t%e continuance of t%e 3ar, and 3%o
3ere ousted from t%e minin properties onl' in Auust 1.A9" After t%e minin properties 3ere li+erated from
t%e Japanese forces, &E6A!TO too: possession t%ereof and em+ar:ed in re+uildin and reconstructin t%e
mines and millL settin up ne3 orani>ationL clearin t%e mill siteL repairin t%e minesL erectin staff ,uarters
and +odeas and repairin e?istin structuresL installin ne3 mac%iner' and e,uipmentL repairin roads and
maintainin t%e sameL sal-ain e,uipment and storin t%e same 3it%in t%e +odeasL doin police 3or:
necessar' to ta:e care of t%e materials and e,uipment reco-eredL repairin and rene3in t%e 3ater s'stemL
and retim+erin" T%e re%a+ilitation and reconstruction of t%e mine and mill 3as not completed until 1.A7" On
14 June 1.A7 t%e mines resumed operation under t%e e?clusi-e manaement of &E6A!TO" S%ortl' after t%e
mines 3ere li+erated from t%e Japanese in-aders in 1.A9, a disareement arose +et3een !$E&SO! and
&E6A!TO o-er t%e status of t%e operatin contract 3%ic% as rene3ed e?pired in 1.A8" @nder t%e terms
t%ereof, t%e manaement contract s%all remain in suspense in case fortuitous e-ent or force maIeure, suc% as
3ar or ci-il commotion, ad-ersel' affects t%e 3or: of minin and millin" On 4 0e+ruar' 1.97, !$E&SO!
+rou%t an action aainst &E6A!TO +efore t%e Court of 0irst $nstance of (anila to reco-er certain sums of
mone' representin damaes alleedl' suffered +' t%e former in -ie3 of t%e refusal of t%e latter to compl'
3it% t%e terms of a manaement contract entered into +et3een t%em on 35 Januar' 1.38, includin attorne'Ds
fees and costs" &E6A!TO in its ans3er denied t%e material alleations of t%e complaint and set up certain
special defenses, amon t%em, prescription and lac%es, as +ars aainst t%e institution of t%e action" After trial,
t%e court a ,uo rendered a decision dismissin t%e complaint 3it% costs" T%e court stated t%at it did not find
sufficient e-idence to esta+lis% &E6A!TODs counterclaim and so it li:e3ise dismissed t%e same" !$E&SO!
appealed" T%e Supreme Court re-ersed t%e decision of t%e trial court and enter in lieu t%ereof anot%er,
Commercial *a3 ) Cor-oration *a3 200. ( .0 )
Narratives (Berne Guerrero)
orderin &epanto to pa' !ielson (1) 15H s%are of cas% di-idends of *ecem+er, 1.A1 in t%e amount of
618,955"55, 3it% leal interest t%ereon from t%e date of t%e filin of t%e complaintL (1) manaement fee for
Januar', 1.A1 in t%e amount of 61,955"55, 3it% leal interest t%ereon from t%e date of t%e filin of t%e
complaintL (3) manaement fees for t%e si?t'=mont% period of e?tension of t%e manaement contract,
amountin to 6195,555"55, 3it% leal interest from t%e date of t%e filin of t%e complaintL (A) 15H s%are in
t%e cas% di-idends durin t%e period of e?tension of t%e manaement contract, amountin to 61,A55,555"55,
3it% leal interest t%ereon from t%e date of t%e filin of t%e complaintL (9) 15H of t%e depletion reser-e set up
durin t%e period of e?tension, amountin to 693,.17"77, 3it% leal interest t%ereon from t%e date of t%e filin
of t%e complaintL (4) 15H of t%e e?penses for capital account durin t%e period of e?tension, amountin to
64.A,34A"84, 3it% leal interest t%ereon from t%e date of t%e filin of t%e complaintL (8) to issue and deli-er to
!ielson and Co" $nc" s%ares of stoc: of &epanto Consolidated (inin Co" at par -alue e,ui-alent to t%e total
of !ielsonDs 15H s%are in t%e stoc: di-idends declared on !o-em+er 17, 1.A. and Auust 11, 1.95, toet%er
3it% all cas% and stoc: di-idends, if an', as ma' %a-e +een declared and issued su+se,uent to !o-em+er 17,
1.A. and Auust 11, 1.95, as fruits t%at accrued to said s%aresL pro-ided t%at if sufficient s%ares of stoc: of
&epantoDs are not a-aila+le to satisf' t%is Iudment, &epanto s%all pa' !ielson an amount in cas% e,ui-alent
to t%e mar:et -alue of said s%ares at t%e time of default, t%at is, all s%ares of stoc: t%at s%ould %a-e +een
deli-ered to !ielson +efore t%e filin of t%e complaint must +e paid at t%eir mar:et -alue as of t%e date of t%e
filin of t%e complaintL and all s%ares, if an', t%at s%ould %a-e +een deli-ered after t%e filin of t%e complaint
at t%e mar:et -alue of t%e s%ares at t%e time &epanto disposed of all its a-aila+le s%ares, for it is onl' t%en t%at
&epanto placed itself in condition of not +ein a+le to perform its o+liationL (7) t%e sum of 695,555"55 as
attorne'Ds feesL and (.) t%e costs"
&epanto see:s t%e reconsideration of t%e decision rendered on 18 *ecem+er 1.44"
%ssue$ )%et%er t%e manaement contract is a contract of aenc' or a contract of lease of ser-ices"
&eld$ Article 185. of t%e Old Ci-il Code, definin contract of aenc', pro-ides t%at MB' t%e contract of
aenc', one person +inds %imself to render some ser-ice or do somet%in for t%e account or at t%e re,uest of
anot%er"M Article 19AA, definin contract of lease of ser-ice, pro-ides t%at M$n a lease of 3or: or ser-ices, one
of t%e parties +inds %imself to ma:e or construct somet%in or to render a ser-ice to t%e ot%er for a price
certain"M $n +ot% aenc' and lease of ser-ices one of t%e parties +inds %imself to render some ser-ice to t%e
ot%er part'" Aenc', %o3e-er, is distinuis%ed from lease of 3or: or ser-ices in t%at t%e +asis of aenc' is
representation, 3%ile in t%e lease of 3or: or ser-ices t%e +asis is emplo'ment" T%e lessor of ser-ices does not
represent %is emplo'er, 3%ile t%e aent represents %is principal" 0urt%er, aenc' is a preparator' contract, as
aenc' Mdoes not stop 3it% t%e aenc' +ecause t%e purpose is to enter into ot%er contracts"M T%e most
c%aracteristic feature of an aenc' relations%ip is t%e aentDs po3er to +rin a+out +usiness relations +et3een
%is principal and t%ird persons" MT%e aent is destined to e?ecute Iuridical acts (creation, modification or
e?tinction of relations 3it% t%ird parties)" &ease of ser-ices contemplate onl' material (non=Iuridical) acts"M
Jerein, t%e principal and paramount underta:in of !ielson under t%e manaement contract 3as t%e
operation and de-elopment of t%e mine and t%e operation of t%e mill" All t%e ot%er underta:ins mentioned in
t%e contract are necessar' or incidental to t%e principal underta:in P t%ese ot%er underta:ins +ein
dependent upon t%e 3or: on t%e de-elopment of t%e mine and t%e operation of t%e mill" $n t%e performance of
t%is principal underta:in !ielson 3as not in an' 3a' e?ecutin Iuridical acts for &epanto, destined to create,
modif' or e?tinuis% +usiness relations +et3een &epanto and t%ird persons" $n ot%er 3ords, in performin its
principal underta:in !ielson 3as not actin as an aent of &epanto, in t%e sense t%at t%e term aent is
interpreted under t%e la3 of aenc', +ut as one 3%o 3as performin material acts for an emplo'er, for a
compensation" $t is true t%at t%e manaement contract pro-ides t%at !ielson 3ould also act as purc%asin
aent of supplies and enter into contracts reardin t%e sale of mineral, +ut t%e contract also pro-ides t%at
!ielson could not ma:e an' purc%ase, or sell t%e minerals, 3it%out t%e prior appro-al of &epanto" $t is clear,
t%erefore, t%at e-en in t%ese cases !ielson could not e?ecute Iuridical acts 3%ic% 3ould +ind &epanto 3it%out
first securin t%e appro-al of &epanto" !ielson, t%en, 3as to act onl' as an intermediar', not as an aent"
Commercial *a3 ) Cor-oration *a3 200. ( .1 )
Narratives (Berne Guerrero)
0urt%er, from t%e statements in t%e annual report for 1.34, and from t%e pro-ision of pararap% Q$ of t%e
(anaement contract, t%at t%e emplo'ment +' &epanto of !ielson to operate and manae its mines 3as
principall' in consideration of t%e :no3=%o3 and tec%nical ser-ices t%at !ielson offered &epanto" T%e
contract t%us entered into pursuant to t%e offer made +' !ielson and accepted +' &epanto 3as a Mdetailed
operatin contractM" $t 3as not a contract of aenc'" !o3%ere in t%e record is it s%o3n t%at &epanto
considered !ielson as its aent and t%at &epanto terminated t%e manaement contract +ecause it %ad lost its
trust and confidence in !ielson"
40 %slamic 2irectorate o, t;e :;ili--ines vs. Court o, A--eals [GR 117/17 14 'a" 1117#
First Division, "er#osisi#a Jr$ (J): 1 concurs, 1 concurs, 1 too* no art, 1 on leave
Facts$ Sometime in 1.81, $slamic leaders of all (uslim maIor tri+al roups in t%e 6%ilippines %eaded +'
*ean Cesar Adi+ (aIul orani>ed and incorporated t%e $S&A($C *$RECTORATE O0 TJE 6J$&$66$!ES
($*6), t%e primar' purpose of 3%ic% is to esta+lis% an $slamic Center in Rue>on Cit' for, t%e construction of a
M(os,ue (pra'er place, (adrasa% (Ara+ic Sc%ool), and ot%er reliious infrastructuresM so as to facilitate t%e
effecti-e practice of $slamic fait% in t%e area" To3ards t%is end, t%at is, in t%e same 'ear, t%e &i+'an
o-ernment donated mone' to t%e $*6 to purc%ase land at Culiat, Tandan Sora, Rue>on Cit', to +e used as a
Center for t%e $slamic populace" T%e land, 3it% an area of A.,491 s,uare meters, 3e co-ered +' t3o titles:
TCTs RT=14915 (184414) and RT=14911 (185948), +ot% reistered in t%e name of $*6" $n 1.81, t%e Board of
Trustees of t%e $*6 3as composed of Senator (amintal Tamano, Conressman Ali *imaporo, Conressman
Salipada 6endatun, *ean Cesar Adi+ (aIul, Sultan Jarun Al=Ras%id &ucman, *eleate A%mad Alonto,
Commissioner *atu (ama Sinsuat and (a'or Amin:adra A+u+a:ar" $n 1.81, after t%e purc%ase of t%e land
+' t%e &i+'an o-ernment in t%e name of $*6, (artial &a3 3as declared +' t%e late 6resident 0erdinand
(arcos" (ost of t%e mem+ers of t%e 1.81 Board of Trustees li:e Senators (amintal Tamano, Salipada
6endatun, A%mad Alonto, and Conressman Al=Ras%id &ucman fle3 to t%e (iddle East to escape political
persecution" T%ereafter, t3o (uslim roups sprun, t%e Carpi>o /roup, %eaded +' Enineer 0arou: Carpi>o,
and t%e A++as /roup, led +' (rs" Fora'da Tamano and Att'" 0irdaussi A++as" Bot% roups claimed to +e t%e
leitimate $*6" Sinificantl', on 3 Octo+er 1.74, t%e SEC, in a suit +et3een t%ese t3o contendin roups,
came out 3it% a *ecision in SEC Case 1478 declarin t%e election of +ot% t%e Carpi>o /roup and t%e A++as
/roup as $*6 +oard mem+ers to +e null and -oid" !eit%er roup, %o3e-er, too: t%e necessar' steps
prescri+ed +' t%e SEC in its 3 Octo+er 1.74 *ecision, and no -alid election of t%e mem+ers of t%e Board of
Trustees of $*6 3as e-er called" Alt%ou% t%e Carpi>o /roup attempted to su+mit a set of +'=la3s, t%e SEC
found t%at, aside from t%at Enineer 0arou: Carpi>o and Att'" (usi+ Buat, t%ose 3%o prepared and adopted
t%e +'=la3s 3ere not +ona fide mem+ers of t%e $*6, t%us renderin t%e adoption of t%e +'=la3s li:e3ise null
and -oid" On 15 April 1.7., 3it%out %a-in +een properl' elected as ne3 mem+ers of t%e Board of Trustees
of $*6, t%e Carpi>o /roup caused to +e sined an alleed Board Resolution of t%e $*6, aut%ori>in t%e sale of
t%e su+Iect t3o parcels of land to t%e $lesia ni Cristo ($!C) for a consideration of 611,3A3,A55"55, 3%ic% sale
3as e-idenced +' a *eed of A+solute Sale 11 dated 15 April 1.7." On 35 (a' 1..1, t%e 1.81 $*6 Board of
Trustees %eaded +' former Senator (amintal Tamano, or t%e Tamano /roup, filed a petition +efore t%e SEC
(SEC Case A511) see:in to declare null and -oid t%e *eed of A+solute Sale sined +' t%e Carpi>o /roup and
t%e $!C since t%e roup of Enineer Carpi>o 3as not t%e leitimate Board of Trustees of t%e $*6" (ean3%ile,
$!C, pursuant to t%e *eed of A+solute Sale e?ecuted in its fa-or, filed an action for Specific 6erformance
3it% *amaes aainst t%e -endor, Carpi>o /roup, +efore Branc% 71 of t%e Reional Trial Court of Rue>on
Cit' (Ci-il Case R=.5=4.38) to compel said roup to clear t%e propert' of s,uatters and deli-er complete and
full p%'sical possession t%ereof to $!C" &i:e3ise, $!C filed a motion in t%e same case to compel one (rs"
&eticia 6" &ion to produce and surrender to t%e Reister of *eeds of Rue>on Cit' t%e o3nerDs duplicate cop'
of TCTs RT=14911 and RT=14915 co-erin t%e t3o parcels of land, so t%at t%e sale in $!CDs fa-or ma' +e
reistered and ne3 titles issued in t%e name of $!C" (rs" &ion 3as alleed to +e t%e mortaee of t%e t3o
parcels of land e?ecuted in %er fa-or +' certain A+dulra%man R"T" &in>a and Ro3aida Busran=Sampaco
claimed to +e in +e%alf of t%e Carpi>o /roup" Jude Celia &ipana=Re'es of Branc% 71, Reional Trial Court
of Rue>on Cit', denied $*6Ds motion to inter-ene on t%e round of lac: of Iuridical personalit' of t%e $*6=
Commercial *a3 ) Cor-oration *a3 200. ( .2 )