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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
April-1939 Jurisprudence                 

  • G.R. No. 43850 April 3, 1939 - JOSE C. BUCOY v. JOHN R. MCFIE, ET AL.

    067 Phil 126

  • G.R. No. 45080 April 3, 1939 - FLORENCIA DUQUILLO v. PAZ BAYOT

    067 Phil 131

  • G.R. No. 45112 April 3, 1939 - APOLONIA GOMEZ v. LEVY HERMANOS, INC.

    067 Phil 134

  • G.R. No. 45144 April 3, 1939 - M. E. GREY v. INSULAR LUMBER COMPANY

    067 Phil 139

  • G.R. No. 45696 April 3, 1939 - PLACIDA PASCASIO, ET AL. v. BENITO GUIDO

    067 Phil 143

  • G.R. No. 45159 April 4, 1939 - GOVERNMENT OF THE PHIL. v. EMILIO MA. DE MORETA

    067 Phil 146

  • G.R. Nos. 46231-46235 April 4, 1939 - PEOPLE OF THE PHIL. v. PAULO B. GONZALEZ

    067 Phil 147

  • G.R. No. 46239 April 4, 1939 - SAN JUAN DE DIOS HOSPITAL v. ROSENDO MARCOS, ET AL.

    067 Phil 150

  • G.R. No. 46247 April 4, 1939 - SAN JUAN DE DIOS HOSPITAL v. MUNICIPAL COUNCIL OF SAN RAFAEL, ET AL.

    067 Phil 158

  • G.R. No. 45177 April 5, 1939 - JOSE MARTINEZ v. SANTOS B. PAMPOLINA

    067 Phil 167

  • G.R. No. 45193 April 6, 1939 - EMILIE ELMIRA RENEE BOUDARD, ET AL. v. STEWART EDDIE TAIT

    067 Phil 170

  • G.R. No. 46510 April 5, 1939 - ORIENT PROTECTIVE ASSURANCE ASSOCIATION v. ANTONIO RAMOS

    067 Phil 176

  • G.R. No. 45517 April 5, 1939 - TARCILA L. TRINIDAD v. ORIENT PROTECTIVE ASSURANCE ASSOCIATION

    067 Phil 181

  • G.R. No. 45738 April 6, 1939 - PEOPLE OF THE PHIL. v. MAXIMIANO CELORICO

    067 Phil 185

  • G.R. No. 45748 April 6, 1939 - PEOPLE OF THE PHIL. v. FRANCO VERA REYES

    067 Phil 187

  • G.R. No. 45955 April 5, 1939 - TEODORICA R. VIUDA DE JOSE v. JULIO VELOSO BARRUECO

    067 Phil 191

  • G.R. No. 46144 April 6, 1939 - PEOPLE OF THE PHIL. v. FRANCISCO CINCO, ET AL.

    067 Phil 196

  • G.R. No. 46409 April 5, 1939 - INSULAR MOTORS INCORPORATED v. CITY OF MANILA, ET AL.

    067 Phil 201

  • G.R. No. 46478 April 6, 1939 - PEOPLE OF THE PHIL. v. GO UG, ET AL.

    067 Phil 202

  • G.R. No. 43822 April 10, 1939 - PHILIPPINE TRUST CO. v. HONGKONG & SHANCHAI BANKING CORPORATION

    067 Phil 204

  • G.R. No. 45152 April 10, 1939 - HILARIA SIKAT v. JOHN CANSON

    067 Phil 207

  • G.R. No. 45170 April 10, 1939 - ARSENIO DE VERA, ET AL. v. CLEOTILDE GALAURAN

    067 Phil 213

  • G.R. No. 45171 April 10, 1939 - EUGENIO VERAGUTH, ET AL. v. ROSARIO MONTILLA, ET AL.

    067 Phil 215

  • G.R. No. 45192 April 10, 1939 - IN RE: VICENTE J. FRANCISCO

    067 Phil 222

  • G.R. No. 45200 April 10, 1939 - GOVERNMENT OF THE PHIL. v. APOLONIA S. ZAPANTA, ET AL.

    067 Phil 232

  • G.R. No. 45246 April 10, 1939 - CARLOS N. FRANCISCO v. PARSONS HARDWARE CO.

    067 Phil 234

  • G.R. No. 45273 April 10, 1939 - LUNETA MOTOR CO. v. FEDERICO ABAD

    067 Phil 236

  • G.R. No. 45295 April 10, 1939 - RUFO ARCENAS v. INOCENCIO DEL ROSARIO, ET AL.

    067 Phil 238

  • G.R. No. 45302 April 10, 1939 - GERVASIA ENCARNACION, ET AL. v. PROVINCIAL SHERIFF OF RIZAL, ET AL.

    067 Phil 245

  • G.R. No. 45337 April 10, 1939 - MANILA MOTOR CO. v. ANICETO MARAÑA

    067 Phil 247

  • G.R. No. 45381 April 10, 1939 - FELIX BENEDICTO v. PERFECTO ESPINO

    067 Phil 249

  • G.R. No. 45898 April 10, 1939 - JOVITA JOVEN v. MARCELO T. BONCAN, ET AL.

    067 Phil 252

  • G.R. No. 46530 April 10, 1939 - PEOPLE OF THE PHIL. v. CATALINO RABAO

    067 Phil 255

  • G.R. No. 45123 April 12, 1939 - AGRIPINO INFANTE v. MARCOS DULAY

    067 Phil 259

  • G.R. No. 45165 April 12, 1939 - GREGORIA JIMENEZ v. GEROMIMO JIMENEZ

    067 Phil 263

  • G.R. No. 45277 April 12, 1939 - TORIBIO TEODORO v. JUAN POSADAS

    067 Phil 267

  • G.R. No. 45306 April 12, 1939 - JOSUE SONCUYA v. LA URBANA

    067 Phil 271

  • G.R. No. 45365 April 12, 1939 - FULTON IRON WORKS CO. v. SIDNEY C. SCHWARZKOPF

    067 Phil 274

  • G.R. No. 45375 April 12, 1939 - COMMONWEALTH OF THE PHIL. v. GLORIA BALDELLO

    067 Phil 277

  • G.R. No. 45454 April 12, 1939 - EULALIO GARCIA v. SINFOROSA C. DAVID, ET AL.

    067 Phil 279

  • G.R. No. 45515 April 12, 1939 - TOLARAM MENGHRA v. BULCHAND ARACHAND, ET AL.

    067 Phil 286

  • G.R. No. 45742 April 12, 1939 - TIBURCIO MAMUYAC v. PEDRO ABENA

    067 Phil 289

  • G.R. No. 45752 April 12, 1939 - PEOPLE OF THE PHIL. v. JUAN PERALTA, ET AL.

    067 Phil 293

  • G.R. No. 45821 April 12, 1939 - SOCONY-VACUUM CORPORATION v. LEON C. MIRAFLORES

    067 Phil 304

  • G.R. No. 45899 April 12, 1939 - RAYMUNDO VARGAS v. NIEVES TANCIOCO,, ET AL.

    067 Phil 308

  • G.R. No. 45405 April 13, 1939 - IN RE: ANTONIO FRANCO

    067 Phil 312

  • G.R. No. 45529 April 13, 1939 - VENANCIO QUEBLAR v. LEONARDO GARDUÑO

    067 Phil 316

  • G.R. No. 46428 April 13, 1939 - PEOPLE OF THE PHIL. v. IRINEO TUMLOS

    067 Phil 320

  • G.R. No. 45253 April 14, 1939 - FIDELITY AND SURETY COMPANY OF THE PHIL. v. ISABELO G. SANCHEZ, ET AL.

    067 Phil 323

  • G.R. No. 45310 April 14, 1939 - MARCOS J. ROTEA v. FRANCISCA DELUPIO

    067 Phil 330

  • G.R. No. 45400 April 14, 1939 - MARCIANA LUNASCO v. VETERANS ADMINISTRATION

    067 Phil 333

  • G.R. No. 45536 April 14, 1939 - PEDRO AMANTE v. SERAFIN P. HILADO

    067 Phil 338

  • G.R. No. 45601 April 14, 1939 - TAVERA-LUNA v. MARIANO NABLE

    067 Phil 340

  • G.R. No. 45687 April 14, 1939 - CARIDAD ESTATE OF CAVITE, INC. v. VICENTE AVILA

    067 Phil 345

  • G.R. No. 45931 April 14, 1939 - URBANO SERRANO v. VICENTE DE LA CRUZ

    067 Phil 348

  • G.R. No. 45340 April 15, 1939 - MARCELA BALLESTEROS v. VETERANS ADMINISTRATION

    067 Phil 351

  • G.R. No. 45430 April 15, 1939 - TERESA GARCIA v. LUISA GARCIA, ET AL.

    067 Phil 353

  • G.R. No. 45643 April 16, 1939 - RAYMUNDO CORDERO v. COURT OF FIRST INSTANCE OF LAGUNA, Respondents.

    067 Phil 358

  • G.R. No. 45576 April 19, 1939 - MAXIMIANO FUENTES v. JUSTICE OF THE PEACE OF PILA, LAGUNA, ET AL.

    067 Phil 364

  • G.R. No. 45248 April 18, 1939 - VICENTE REYES VILLAVICENCIO v. SANTIAGO QUINIO

    067 Phil 367

  • G.R. No. 45418 April 18, 1939 - AMBROSIO RAMOS, ET AL. v. H. A. GIBBON, ET AL.

    067 Phil 371

  • G.R. No. 45701 April 18, 1939 - TIRSO GARCIA v. TY CAMCO SOBRINO

    067 Phil 384

  • G.R. No. 45721 April 18, 1939 - MELCHOR LAMPREA v. DIRECTOR OF LANDS, ET AL.

    067 Phil 388

  • G.R. No. 45803 April 18, 1939 - VICENTA C. VDA. DE GUIDOTE v. BANK OF THE PHILIPPINE ISLANDS

    067 Phil 391

  • G.R. No. 45923 Abril 18, 1939 - CHOA FUN v. EL SECRETARIO DEL TRABAJO

    067 Phil 394

  • G.R. No. 46015 April 18, 1939 - LIBERATO JIMENEZ v. INES DE CASTRO, ET AL.

    067 Phil 398

  • G.R. No. 46043 April 18, 1939 - TERESA LANDRITO, ET AL. v. RICARDO GONZALEZ, ET AL.

    067 Phil 401

  • G.R. No. 46134 April 18, 1939 - NICOLASA DE GUZMAN v. ANGELA LIMCOLIOC

    067 Phil 404

  • G.R. No. 46317 April 18, 1939 - JUSTO QUIMING v. MARIANO L. DE LA ROSA

    067 Phil 406

  • G.R. No. 45290 April 19, 1939 - GOVERNMENT OF THE PHIL. v. PAULA MERCADO

    067 Phil 409

  • G.R. No. 45126 April 19, 1939 - DIRECTOR OF LANDS v. ALBINO PANUNCIO

    067 Phil 414

  • G.R. No. 45166 April 19, 1939 - LEON C. VIARDO v. GALICANO GUTIERREZ

    067 Phil 416

  • G.R. No. 45190 April 19, 1939 - PEOPLE OF THE PHIL. v. ANTONIO APAREJADO, ET AL.

    067 Phil 418

  • G.R. No. 45531 April 19, 1939 - FRED OMNAS, ET AL. v. PABLO S. RIVERA

    067 Phil 419

  • G.R. No. 46002 April 19, 1939 - SALVACION RIOSA v. STILIANOPULOS, INC.

    067 Phil 422

  • G.R. No. 45715 April 20, 1939 - PEOPLE OF THE PHIL. v. REMIGIO OLIVERIA

    067 Phil 427

  • G.R. No. 45934 April 20, 1939 - FORTUNATO DIAZ v. PEOPLE OF THE PHIL.

    067 Phil 432

  • G.R. No. 45980 April 20, 1939 - MARIA MARTINEZ v. YEK TONG LIN FIRE & MARINE INSURANCE CO.

    067 Phil 436

  • G.R. No. 45493 April 21, 1939 - GERARDO GARCIA v. ANGEL SUAREZ

    067 Phil 441

  • G.R. No. 45595 April 21, 1939 - JUAN POSADAS, ET AL. v. GO HAP, ET AL.

    067 Phil 446

  • G.R. No. 46046 April 21, 1939 - PROCOPIO GAQUIT v. DOROTEO CONUI

    067 Phil 449

  • G.R. No. 46570 April 21, 1939 - JOSE D. VILLENA v. SECRETARY OF THE INTERIOR

    067 Phil 451

  • G.R. No. 45449 April 22, 1939 - TOMAS S. OCEJO v. CONSUL GENERAL OF SPAIN

    067 Phil 475

  • G.R. No. 46330 April 22, 1939 - IRENEO ABAD SANTOS, ET AL. v. PROVINCE OF TARLAC, ET AL.

    067 Phil 480

  • G.R. No. 45413 April 24, 1939 - LA YEBANA, CO., INC. v. JULIO L. VALENZUELA, ET AL.

    067 Phil 482

  • G.R. No. 45666 April 24, 1939 - ALFREDO VALENZUELA v. PEOPLE OF THE PHIL.

    067 Phil 490

  • G.R. No. 45978 April 24, 1939 - MIGUELA ELEAZAR v. EUSEBIO ELEAZAR

    067 Phil 497

  • G.R. No. 46029 April 24, 1939 - NATIONAL LOAN AND INVESTMENT BOARD v. LUIS MENESES

    067 Phil 498

  • G.R. No. 45369 April 25, 1939 - ISABELA SUGAR CO., INC. v. ALFFREDO L. YATCO

    067 Phil 500

  • G.R. No. 45544 April 25, 1939 - COLLECTOR OF INTERNAL REVENUE v. LORENZO ECHARRI

    067 Phil 502

  • G.R. No. 45624 April 25, 1939 - GEORGE LITTON v. HILL & CERON, ET AL.

    067 Phil 509

  • G.R. No. 45739 April 26, 1939 - PEOPLE OF THE PHIL. v. SOTERO PEJI BAUTISTA

    067 Phil 518

  • G.R. No. 45755 April 25, 1939 - ASUNCION ABAD v. AMANDO AQUINO

    067 Phil 526

  • G.R. No. 45964 April 26, 1939 - PEOPLE OF THE PHIL. v. RESTITURO FALLER

    067 Phil 529

  • G.R. No. 46035 April 25, 1939 - DIRECTOR OF LANDS v. PHILIPPINE NATIONAL BANK, ET AL.

    067 Phil 531

  • G.R. No. 46260 April 26, 1939 - PABLO TAMAYO v. FRANCISCO E. JOSE, ET AL.

    067 Phil 536

  • G.R. No. 46356 April 25, 1939 - FRUCTUOSA VELASCO VDA. DE TALAVERA v. CORRECTIONAL INSTITUTION FOR WOMEN

    067 Phil 538

  • G.R. No. 45403 April 26, 1939 - NATIONAL CITY BANK OF NEW YORK v. NEW YORK TONG LIN & MARINE INSURANCE COMPANY

    067 Phil 544

  • G.R. No. 45519 April 26, 1939 - RUFINA SALAO, ET AL. v. TEOFILO C. SANTOS, ET AL.

    067 Phil 547

  • G.R. No. 45521 April 26, 1939 - JOSE MORENO, ET AL. v. BONIFACIO SAN MATEO, ET AL.

    067 Phil 551

  • G.R. No. 45598 April 26, 1939 - TAN PHO v. HASSAMAL DALAMAL

    067 Phil 555

  • G.R. No. 45614 April 26, 1939 - NORBERTO FORDAN v. ANTONIO LUZON

    067 Phil 559

  • G.R. No. 45662 April 26, 1939 - ENRIQUE CLEMENTE v. DIONISIO GALVAN

    067 Phil 565

  • G.R. No. 46366 April 26, 1939 - PHILIPPINE NATIONAL BANK v. PARDO Y ROBLES HERMANOS, ET AI. .

    067 Phil 570

  • G.R. No. 46492 April 26, 1939 - RAMON SOTELO v. ARSENIO P. DIZON, ET AL.

    067 Phil 573

  • G.R. No. 45173 April 27, 1939 - RED LINE TRANSPORTATION CO., INC. v. BACHRACH MOTOR COMPANY, INC.

    067 Phil 577

  • G.R. No. 45359 April 27, 1939 - JACINTO M. DEL SAZ OROZCO, ET AL. v. SALVADOR ARANETA

    067 Phil 591

  • G.R. No. 45506 April 27, 1939 - FORTUNATO MANZANERO v. REMEDIOS BONGON

    067 Phil 595

  • G.R. No. 45508 April 27, 1939 - SEGUNDA DEVEZA v. ERIBERTO BALMEO, ET AL.

    067 Phil 603

  • G.R. No. 45534 April 27, 1939 - JOSEFA RIZAL MERCADO, ET AL. v. ALFREDO HIDALGO REAL

    067 Phil 608

  • G.R. No. 45694 April 27, 1939 - FRANCISCO YATCO v. EL HOGAR FILIPINO

    067 Phil 610

  • G.R. No. 45724 April 27, 1939 - IGNACIO DE GUZMAN, ET AL. v. TEODORO IBEA, ET AL.

    067 Phil 633

  • G.R. No. 45741 April 27, 1939 - F. Y A. GARCIA DIEGO v. GLORIA DE ANTONIO, ET AL.

    067 Phil 637

  • G.R. No. 45185 April 28, 1939 - GOVERNMENT OF THE PHIL. v. SALUD ALDEGUER VIUDA DE ROMERO SALAS

    067 Phil 643

  • G.R. No. 45464 April 28, 1939 - JOSUE SONCUYA v. CARMEN DE LUNA

    067 Phil 646

  • G.R. No. 45625 April 28, 1939 - MARGARITA VILLANUEVA v. JUAN SANTOS

    067 Phil 648

  • G.R. No. 45761 April 28, 1939 - JULIA DEL ROSARIO, ET AL. v. ANTONIO DEL ROSARIO, ET AL.

    067 Phil 652

  • G.R. No. 45266 April 29, 1939 - SIMEON RAEL v. PROVINCIAL GOVERNMENT OF RIZAL

    067 Phil 654

  • G.R. No. 45410 April 29, 1939 - MACONDRAY & CO., INC. v. JOSE BERNABE

    067 Phil 658

  • G.R. No. 45412 April 29, 1939 - COSME CARLOS, ET AL. v. COSME CARLOS

    067 Phil 662

  • G.R. No. 45425 April 29, 1939 - JOSE GATCHALIAN v. COLLECTOR OF INTERNAL REVENUE

    067 Phil 666

  • G.R. No. 45479 April 29, 1939 - FELIX ATACADOR v. HILARION SILAYAN

    067 Phil 674

  • G.R. No. 45597 April 29, 1939 - MACARIA PASCUAL v. LORENZA RAMIREZ, ET AL.

    067 Phil 678

  • G.R. No. 45965 April 29, 1939 - AMPARO GONZALEZ, ET AL. v. PRIMITIVO TRINIDAD, ET AL.

    067 Phil 682

  • G.R. No. 46003 April 29, 1939 - SIXTO DE LA COSTA, ET AL. v. BONIFACIO CLEOFAS

    067 Phil 686

  • G.R. No. 46026 April 29, 1939 - JESUSA PORTILLO-RIVERA v. STRACHAN, MACMURRAY & CO., LTD.

    067 Phil 694

  • G.R. No. 46604 April 29, 1939 - FRANCISCO MORFE, ET AL. v. JUSTICE OF THE PEACE OF CALOOCAN, ET AL.

    067 Phil 696

  •  





     
     

    G.R. No. 45980   April 20, 1939 - MARIA MARTINEZ v. YEK TONG LIN FIRE & MARINE INSURANCE CO. <br /><br />067 Phil 436

     
    PHILIPPINE SUPREME COURT DECISIONS

    EN BANC

    [G.R. No. 45980. April 20, 1939.]

    MARIA MARTINEZ, Petitioner, v. THE YEK TONG LIN FIRE & MARINE INSURANCE CO., Respondent.

    Ramirez & Ortigas for Petitioner.

    Feliciano Belmonte for Respondent.

    SYLLABUS


    1. BROKER; VIOLATION OF OBLIGATIONS PURCHASE AND SALE OF SHARES; BOND. — In view of the facts set out in the decision of the court, Held: That there is no question that C. B. CO., Inc., purchased the 11,000 shares of the B. G. M. CO. upon its own account, and thereafter sold them also upon its own account, a part to H. I. Co., Inc., and a part to A. E., in violation of its obligations as a broker, for as such broker it would neither purchase nor sell shares upon its own account. The compliance with this obligation was guaranteed by the surety under paragraph (c) of the bond transcribed in the decision.


    D E C I S I O N


    CONCEPCION, J.:


    Maria Martinez appeals to this court on certiorari from the decision of the Court of Appeals which modified the judgment of the Court of First Instance of Manila, rendered in a case filed by the herein petitioner, as plaintiff, against the Central Brokerage Co., Inc., and the Yek Tong Lin Fire & Marine Insurance Co., as defendants. The judgment of the Court of First Instance ordered the defendants to pay to the plaintiff, jointly and severally, the sum of P3,258.70, plus the legal interest thereon from August 30, 1934, the date of the filing of the complaint, and the costs. The Court of Appeals affirmed this judgment except in so far as it makes liable the herein respondent, the Yek Tong Lin Fire & Marine Insurance Co., Ltd., dismissing the complaint with respect to said corporation.

    From the statement of facts set out n the decision of the Court of Appeals, it appears that:jgc:chanrobles.com.ph

    "On July 13, 1934, the Central Brokerage Co., Inc., was duly registered as a corporation in the Bureau of Commerce. One of its incorporators and directors was Jesus Lontoc (Exhibit A). On July 25, 1934. said corporation, through its president and/or manager, H. A. Wendt, applied for a certificate of authority to engage in brokerage business in the Philippines (Exhibit E:). On August 8, 1934, the Central Brokerage Co., Inc. as principal, and the Yek Tong Lin Fire & Marine Insurance Co., Ltd., a corporation duly organized and existing under and by virtue of the laws of the Philippines, as surety, bound themselves for a period of one (1) year to pay, jointly and severally, an amount not to exceed P20,000 to the Government of the Philippine Islands, or to whom it may concern, for the purpose of scouring the payment to any person who may sustain any loss or damage by reason of any fraud or negligence connected with or growing out of the nonperformance of the obligations stipulated in the bond (Exhibit C). on August 9, 1934, the certificate of authority applied for by the Central Brokerage Co., Inc. was issued by the Bureau of Commerce. Jesus Lontoc took all the necessary steps for the issuance of said authority, but Lontoc was not a broker. The authority of the Central Brokerage Co., Inc., is still subsisting. On August 21, 1934, the plaintiff, who was a licensed broker, purchased for J. Lontoc of the Central Brokerage Co., Inc., 5,000 shares of the Baguio Gold Mining Co. (Exhibit F-1), the price of which was paid by said corporation by means of checks for P1,020 and P680 drawn by the corporation on August 22 and 24, 1934, respectively, upon the Philippine National Bank in favor of the plaintiff. Said checks were signed by Jesus Lontoc, as manager, and H. A. Wendt, as president, of the Central Brokerage Co., Inc., the name of the corporation appearing typewritten over and above said signatures (Exhibits E and E-1). On August 22, 1934, .Jesus Lontoc ordered the plaintiff to purchase 11,000 shares of the Baguio Gold Mining Co. at P0.34 a share. The price thereof amounting to P3,758.70 including the brokerage charges (Exhibits G-1, G-2, F-2, F-3, H and H-1), had not been paid by the defendants Central Brokerage Co., Inc., and the Yek Tong Lin Fire & Marine Insurance Co., Ltd., except P500 paid by Jesus Lontoc on August 24, 1934 (p. 11, t. P. n.; Exhibit 1); despite demands made upon said defendants to do so (Exhibits I and I-1). On August 23, 1934, in 8 letter addressed by Jesus Lontoc to the Baguio Gold Mining Co., he instructed said mining company to transfer the 11,000 shares in his name (Exhibit H-2.) . The plaintiff never had any personal transaction with Jesus Lontoc (p. 9, t. s. n.) . On August 23, 1934, at 9 a. m., the office of Flaming & Williamson, transfer agents of the Baguio Gold Mining Co., received the originals of Exhibits H and H-1, and pursuant thereto and to a letter received from Jesus Lontoc (Exhibit H-2) said 11,000 shares of the Baguio Gold Mining Co. were transferred in the name of Jesus Lontoc. On August 24, 1934, 5,000 of said shares were transferred to Hess Investment Co. Inc.; and on August 27, 1934, 6,000 of said shares-were transferred to A. Elsingre (p. 14, t. 8. n.) . According to the rules of the exchange the price of shares purchased must be paid in cash w thin 48 hours (p. 15, t. s n.) ."cralaw virtua1aw library

    In view of the foregoing facts, the Court of Appeals reached the conclusion that a contractual relation arose between the plaintiff, the herein petitioner, and the defendant corporation, and held that said corporation was bound to live up to its part of the contract entered into by its manager, Jesus Lontoc. This part is to pay the price of the shares purchased by it; but as to the liability of the other defendant, the Yek Tong Lin Fire & Marine Insurance Co., Ltd., the Court of Appeals found no reason to make it liable under the terms of its bond. This is the part or the decision that has been appealed.

    Before taking the appeal, the plaintiff filed a motion for reconsideration in the Court of Appeals on the ground that the said court has entirely put out of view paragraph (c) of the bond of the said surety company, which paragraph reads:jgc:chanrobles.com.ph

    "(c) That with the exception of the cases where he has underwritten an issue of securities and is reselling them to the public, he shall not purchase and sell for his own account." (Emphasis ours.)

    The petitioner contended that the court, having held that the Central Brokerage Co., Inc., had sold the shares of the plaintiff on its behalf, it should have applied the said paragraph (c) of the bond, for the violation of which by the Central Brokerage Co., Inc., the surety corporation was liable under its bond. The motion for reconsideration was denied.

    One of the assignments of error made by the petitioner on appeal consists in the reproduction of her contention just mentioned, namely:jgc:chanrobles.com.ph

    "The Court of Appeals erred and abused its discretion in rendering judgment in disregard of paragraph (c) of the bond."cralaw virtua1aw library

    In denying the motion for reconsideration, the Court of Appeals entered the following resolution:jgc:chanrobles.com.ph

    "This is a motion for reconsideration of the decision rendered in this case on December 29, 1937, in so far as it dismisses the complaint against the Yek Tong Lin Fire Marine Insurance Co., Ltd., without costs.

    "Counsel for the plaintiff contend that clause (c) of the bond regarding obligations of the principal, which provides:jgc:chanrobles.com.ph

    "‘That with the exception of the cases where he has underwritten an issue of securities and is reselling them to the public, he shall not purchase and sell for his on account’, renders the Yek Tong Lin Fire & Marine Insurance Co., Ltd., liable upon its bond.

    "In the decision rendered in this case we did not hold that the Central Brokerage Co., Inc., had purchased 11,000 shares of the Baguio Gold Mining Co. for its account. This was denied by the Central Brokerage Co., Inc., because, as claimed by it, the order for the purchase thereof was made by Jesus Lontoc when he was no longer its manager, he having resigned his position the day before the order was given, and the resignation was accepted that same day by the board of directors of the brokerage company. In fact, the shares thus purchased were disposed of by Jesus Lontoc for his own benefit and not for that of the brokerage company. What we did hold in our decision is that in view of the circumstance attending said purchase of 11,000 shares of the Baguio Gold Mining Co., Inc., the defendant Central Brokerage Co., Inc., as far at the plaintiff was concerned, was liable to pay for the price thereof, because ’she was entitled to rely upon the fact that he was the manager of the defendant corporation and to act upon it.’ The liability of the Central Brokerage Co., Inc., is not made to rest upon the fact that it had made the purchase of said shares of stock, but upon the ground of estoppel. If the Central Brokerage Co., Inc., did not purchase the Paid shares, it is evident that the Yek Tong Lin Fire & Marine Insurance Co., Ltd., can not be held liable upon its bond." (Emphasis ours.)

    The portion underlined does not seem to tally with what the Court of Appeals itself said in its decision as to the participation of the Central Brokerage Co., Inc., in the contract of sale of 11,000 shares of the Baguio Gold Pining Co. A portion of the decision, after setting forth various findings as to how the said shares were acquired by Jesus Lontoc, as an incorporator, director and manager of the Central Brokerage Co., Inc., and as to how this corporation paid the value of said 11,000 shares, states the following:jgc:chanrobles.com.ph

    "The facts established in this case warrant the conclusion that a contractual relation arose between the plaintiff and the defendant corporation. Said defendant is bound to perform its part of the contract entered into by its manager or agent. That part is to pay the price of the shares purchased for it."cralaw virtua1aw library

    According to this, the Court of Appeals arrived at the conclusion that the contract of sale of the 11,000 shares of Baguio Gold Mining Co. took place between the plaintiff and the defendant, Central Brokerage Co., Inc.; but in the resolution denying the motion for reconsideration, it takes the view that "the liability of the Central Brokerage Co., Inc., is not made to rest upon the fact that it had made the purchase of said shares of stock, but upon the ground of estoppel."cralaw virtua1aw library

    "Upon the ground of estoppel", that is to say, the Central Brokerage Co., Inc., by its own acts, is estopped from denying that it had purchased the shares.

    In view of the foregoing facts, there is no question that Central Brokerage Co., Inc., purchased the aforesaid 11,000 shares of Baguio Gold Mining Co. upon its own account, and thereafter sold them also upon its own account, a part to Hess Investment Co., Inc.; and a part to A. Elsingre, in violation of its obligations as a broker, for as such broker it could neither purchase nor sell shares upon its own account. The compliance with this obligation was guaranteed by the surety under paragraph (c) of the bond above transcribed.

    Wherefore, the appealed decision is reversed, and the Yek Tong Lin Fire & Marine Insurance Co., Ltd., is likewise ordered to pay to the petitioner, jointly and severally with the Central Brokerage Co., Inc., the sum of P3,258.70, with legal interest thereon from August 30, 1934, the date of the filing of the complaint, with the costs to the respondents. So ordered.

    Avanceña, C.J., Villa-Real, Imperial, Diaz and Laurel, JJ., concur.

    G.R. No. 45980   April 20, 1939 - MARIA MARTINEZ v. YEK TONG LIN FIRE & MARINE INSURANCE CO. <br /><br />067 Phil 436


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