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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
 

   
August-2001 Jurisprudence                 

  • G.R. No. 126899 August 2, 2001 - PEOPLE OF THE PHIL. v. FELICITO T. BARBOSA

  • G.R. No. 128137 August 2, 2001 - PEOPLE OF THE PHIL. v. MARIO HAMTO

  • G.R. No. 131203 August 2, 2001 - PEOPLE OF THE PHIL. v. GUILLERMO CARIÑO

  • G.R. No. 137473 August 2, 2001 - ESTELITO V. REMOLONA v. CSC

  • G.R. Nos. 141702-03 August 2, 2001 - CATHAY PACIFIC AIRWAYS v. NLRC, ET AL.

  • G.R. Nos. 128816 & 139979-80 August 8, 2001 - PEOPLE OF THE PHIL. v. ALFREDO P. CABILTO, ET AL.

  • G.R. No. 131817 August 8, 2001 - PEOPLE OF THE PHIL. v. DANTE L. DOMINGO

  • G.R. Nos. 133791-94 August 8, 2001 - PEOPLE OF THE PHIL. v. CORNELIO SUPNAD

  • G.R. No. 135065 August 8, 2001 - PEOPLE OF THE PHIL. v. BENNY CABANGCALA, ET AL.

  • Adm. Case No. 4982 August 9, 2001 - KATRINA JOAQUIN CARIÑO v. ARTURO DE LOS REYES

  • A.M. No. 01-2-47-RTC August 9, 2001 - RE: JUDGE GUILLERMO L. LOJA,

  • A.M. No. MTJ-01-1365 August 9, 2001 - CESINA EBALLA v. ESTRELLITA M. PAAS, ET AL.

  • Adm. Matter No. P-01-1495 August 9, 2001 - ESMERALDO D. VISITACION v. GREDAM P. EDIZA

  • A.M. No. RTJ-99-1506 August 9, 2001 - JOSEFINA MERONTOS Vda. de SAYSON v. OSCAR E. ZERNA

  • A.M. No. P-01-1489 August 9, 2001 - CATALINO BAUTISTA, ET AL. v. AMELITA O. MENDOZA

  • G.R. No. 110740 August 9, 2001 - NDC-GUTHRIE PLANTATIONS, ET AL. v. NLRC, ET AL.

  • G.R. No. 112485 August 9, 2001 - EMILIA MANZANO v. MIGUEL PEREZ SR., ET AL.

  • G.R. No. 129209 August 9, 2001 - PEOPLE OF THE PHIL. v. JESEMIEL MOSQUERRA, ET AL.

  • G.R. No. 134565 August 9, 2001 - PEOPLE OF THE PHIL v. LUDIVINO MIANA, ET AL.

  • G.R. Nos. 138472-73 August 9, 2001 - PEOPLE OF THE PHIL. v. NOEL PADILLA

  • G.R. No. 138964 August 9, 2001 - VICENTE RELLOSA, ET AL. v. GONZALO PELLOSIS, ET AL.

  • G.R. No. 139411 August 9, 2001 - PEOPLE OF THE PHIL. v. AGAPITO TORALBA

  • G.R. No. 139532 August 9, 2001 - REGAL FILMS v. GABRIEL CONCEPCION

  • G.R. No. 139665 August 9, 2001 - MA. VILMA S. LABAD v. UNIVERSITY OF SOUTHEASTERN PHIL., ET AL.

  • G.R. No. 140347 August 9, 2001 - PEOPLE OF THE PHIL. v. ROLANDO OLITA

  • G.R. No. 142546 August 9, 2001 - ANASTACIO FABELA, ET AL v. COURT OF APPEALS, ET AL.

  • G.R. No. 142838 August 9, 2001 - ABELARDO B. LICAROS v. ANTONIO P. GATMAITAN

  • G.R. No. 143881 August 9, 2001 - DANILO EVANGELISTA v. PEDRO SISTOZA, ET AL.

  • G.R. No. 143949 August 9, 2001 - ATCI OVERSEAS CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 144089 August 9, 2001 - CONCORDE HOTEL v. COURT OF APPEALS, ET AL.

  • G.R. No. 126480 August 10, 2001 - MARIA TIN v. PEOPLE OF THE PHIL.

  • G.R. No. 129162 August 10, 2001 - PEOPLE OF THE PHIL. v. WILLY FIGURACION, ET AL.

  • G.R. No. 130998 August 10, 2001 - MARUBENI CORP. ET AL. v. FELIX LIRAG

  • G.R. Nos. 137934 & 137936 August 10, 2001 - BATANGAS LAGUNA TAYABAS BUS COMPANY, ET AL. v. BENJAMIN M. BITANGA. ET AL.

  • G.R. No. 143673 August 10, 2001 - CONRADO TUAZON, ET AL. v. ERNESTO GARILAO, ET AL.

  • G.R. No. 144708 August 10, 2001 - RAFAEL ALBANO, ET AL v. COURT OF APPEALS, ET AL.

  • G.R. No. 146724 August 10, 2001 - GIL TAROJA VILLOTA v. COMELEC, ET AL.

  • G.R. No. 136266 August 13, 2001 - EUTIQUIO A. PELIGRINO v. PEOPLE OF THE PHIL.

  • A.M. No. RTJ-01-1612 August 14, 2001 - MARCO FRANCISCO SEVILLEJA v. ANTONIO N. LAGGUI

  • A.M. No. P-00-1438 August 14, 2001 - JUNN F. FLORES v. ROGER S. CONANAN

  • G.R. No. 135482 August 14, 2001 - ORLANDO SALVADOR v. ANIANO A. DESIERTO, ET AL.

  • G.R. No. 136192 August 14, 2001 - PRESIDENTIAL AD HOC FACT-FINDING COMMITTEE ON BEHEST LOANS v. ANIANO DESIERTO, ET AL.

  • G.R. No. 141617 August 14, 2001 - ADALIA B. FRANCISCO and MERRYLAND DEVELOPMENT CORPORATION v. RITA C. MEJIA

  • G.R. No. 142276 August 14, 2001 - FLORENTINO GO, JR., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 142662 August 14, 2001 - PEOPLE OF THE PHIL. v. JERRY FERRER

  • A.C. No. 5486 August 15, 2001 - IN RE: ATTY. DAVID BRIONES.

  • A.M. RTJ No. 89-403 August 15, 2001 - MOLINTO D. PAGAYAO v. FAUSTO H. IMBING

  • A.M. No. 96-9-332-RTC August 15, 2001 - DIRECTOR, PNP NARCOTICS COMMAND v. JAIME N. SALAZAR

  • A.M. No. P-99-1311 August 15, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. ALBERTO V. GARONG

  • G.R. Nos. 113822-23 August 15, 2001 - PEOPLE OF THE PHIL. v. RAUL L. PABLO, ET AL.

  • G.R. No. 118492 August 15, 2001 - GREGORIO H. REYES, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 120468 August 15, 2001 - PEOPLE OF THE PHIL. v. LOPE B. LIWANAG, ET AL.

  • G.R. No. 128177 August 15, 2001 - ROMAN SORIANO v. COURT OF APPEALS, ET AL.

  • G.R. No. 129295 August 15, 2001 - PEOPLE OF THE PHIL. v. EDWIN MORIAL, ET AL.

  • G.R. No. 129598 August 15, 2001 - PNB MADECOR v. GERARDO C. UY

  • G.R. No. 130360 August 15, 2001 - WILSON ONG CHING KIAN CHUAN v. COURT OF APPEALS, ET AL.

  • G.R. No. 136834 August 15, 2001 - FELIX SENDON, ET AL. v. FRATERNIDAD O. RUIZ, ET AL.

  • G.R. No. 137271 August 15, 2001 - PEOPLE OF THE PHIL v. REYNALDO CORRE JR., ET AL.

  • G.R. No. 137509 August 15, 2001 - PEVET ADALID FELIZARDO, ET AL v. SIEGFREDO FERNANDEZ

  • G.R. Nos. 137969-71 August 15, 2001 - PEOPLE OF THE PHIL v. RAFAEL SALALIMA

  • G.R. No. 139337 August 15, 2001 - MA. CARMINIA C. ROXAS v. COURT OF APPEALS, ET AL.

  • G.R. No. 139420 August 15, 2001 - ROBERTO R. SERRANO v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 140900 & 140911 August 15, 2001 - PEOPLE OF THE PHIL. v. RODERICK LICAYAN, ET AL.

  • G.R. No. 143340 August 15, 2001 - LILIBETH SUNGA-CHAN, ET AL v. LAMBERTO T. CHUA

  • G.R. No. 144813 August 15, 2001 - GOLD LINE TRANSIT v. LUISA RAMOS

  • G.R. No. 147270 August 15, 2001 - IN RE: PETE C. LAGRAN

  • A.M. No. RTJ-00-1565 August 16, 2001 - FEDERICO S. BERNARDO v. PATERNO G. TIAMSON

  • G.R. No. 119900 August 16, 2001 - SUNNY MOTORS SALES v. COURT OF APPEALS, ET AL.

  • G.R. No. 121897 August 16, 2001 - PEOPLE OF THE PHIL. v. GIL TEMPLA, ET AL.

  • G.R. No. 126200 August 16, 2001 - DEV’T. BANK OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 126926 August 16, 2001 - RAMON P. ARON v. COURT OF APPEALS, ET AL.

  • G.R. No. 127543 August 16, 2001 - INTERNATIONAL PIPES, ET AL. v. F. F. CRUZ & CO.

  • G.R. No. 132155 August 16, 2001 - ARAS-ASAN TIMBER CO. v. COMMISSIONER OF INTERNAL REVENUE, ET AL.

  • G.R. No. 134292 August 16, 2001 - PEOPLE OF THE PHIL. v. FRANCO MORALES

  • G.R. No. 136365 August 16, 2001 - ENRIQUE R. CAMACHO, ET AL. v. PHIL. NAT’L. BANK, ET AL.

  • G.R. No. 136780 August 16, 2001 - JEANETTE D. MOLINO v. SECURITY DINERS INTERNATIONAL CORP.

  • A.M. No. RTJ-00-1597 August 20, 2001 - WILSON ANDRES v. ORLANDO D. BELTRAN

  • A.M. No. RTJ-94-1131 August 20, 2001 - MIGUEL ARGEL v. HERMINIA M. PASCUA

  • G.R. No. 110055 August 20, 2001 - ASUNCION SAN JUAN v. COURT OF APPEALS, ET AL.

  • G.R. No. 111685 August 20, 2001 - DAVAO LIGHT & POWER CO. v. COURT OF APPEALS, ET AL.

  • G.R. No. 131866 August 20, 2001 - PEOPLE OF THE PHIL. v. CARLOS DOCTOLERO

  • G.R. No. 132174 August 20, 2001 - GUALBERTO CASTRO v. RICARDO GLORIA

  • G.R. No. 132684 August 20, 2001 - HERNANI N. FABIA v. COURT OF APPEALS, ET AL.

  • G.R. No. 134718 August 20, 2001 - ROMANA INGJUGTIRO v. LEON V. CASALS, ET AL.

  • G.R. No. 142401 August 20, 2001 - ANDREW TAN v. COURT OF APPEALS, ET AL.

  • G.R. No. 137299 August 21, 2001 - PEOPLE OF THE PHIL. v. FRANCISCO NANAS

  • G.R. No. 138869 August 21, 2001 - DAVID SO v. COURT OF APPEALS, ET AL.

  • G.R. No. 140519 August 21, 2001 - PHIL. RETIREMENT AUTHORITY v. THELMA RUPA

  • G.R. No. 130817 August 22, 2001 - PRESIDENTIAL AD HOC FACT-FINDING COMMITTEE ON BEHEST LOANS v. ANIANO A. DESIERTO, ET AL.

  • G.R. No. 138403 August 22, 2001 - PEOPLE OF THE PHIL. v. ROLLY C. ABULENCIA

  • G.R. Nos. 141712-13 August 22, 2001 - PEOPLE OF THE PHIL. v. EDMUNDO M. BOHOL

  • G.R. No. 143867 August 22, 2001 - PLDT v. CITY OF DAVAO, ET AL.

  • G.R. No. 128628 August 23, 2001 - ILDEFONSO SAMALA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 133749 August 23, 2001 - HERNANDO R. PEÑALOSA v. SEVERINO C. SANTOS

  • G.R. No. 133789 August 23, 2001 - PEOPLE OF THE PHIL. v. EDUARDO P. CHUA, ET AL.

  • G.R. No. 136506 August 23, 2001 - REPUBLIC OF THE PHIL. v. ANIANO A. DESIERTO, ET AL.

  • G.R. Nos. 137199-230 August 23, 2001 - PEOPLE OF THE PHIL. v. GEORGE J. ALAY-AY

  • G.R. No. 137842 August 23, 2001 - PEOPLE OF THE PHIL. v. DANILO H. CATUBIG

  • G.R. No. 138588 August 23, 2001 - FAR EAST BANK & TRUST COMPANY v. DIAZ REALTY INC.

  • G.R. No. 138022 August 23, 2001 - PEOPLE OF THE PHIL. v. PEDRO A. FRANCISCO

  • G.R. No. 144142 August 23, 2001 - YOLANDA AGUIRRE v. PEOPLE OF THE PHIL.

  • G.R. Nos. 138298 & 138982 August 24, 2001 - RAOUL B. DEL MAR v. PAGCOR, ET AL.

  • G.R. No. 131609 August 27, 2001 - PEOPLE OF THE PHIL. v. BONIFACIO PUERTA

  • A.M. No. RTJ-00-1571 August 28, 2001 - JESUS GUILLAS v. RENATO D. MUÑEZ

  • A.M. No. RTJ-01-1645 August 28, 2001 - VICTORINO S. SIANGHIO, JR. v. BIENVENIDO L. REYES

  • A.M. No. RTJ-01-1626 August 28, 2001 - JOSELITO D. FRANI v. ERNESTO P. PAGAYATAN

  • G.R. Nos. 100633 & 101550 August 28, 2001 - SOCORRO ABELLA SORIANO, ET AL v. COURT OF APPEALS, ET AL.

  • G.R. No. 114118 August 28, 2001 - SIMEON BORLADO, ET AL v. COURT OF APPEALS, ET AL.

  • G.R. No. 125728 August 28, 2001 - MARIA ALVAREZ VDA. DE DELGADO, ET AL v. COURT OF APPEALS, ET AL.

  • G.R. No. 129960 August 28, 2001 - PEOPLE OF THE PHIL. v. PEDRO CARIÑO

  • G.R. No. 131175 August 28, 2001 - JOVITO VALENZUELA, ET AL v. COURT OF APPEALS, ET AL.

  • G.R. No. 133056 August 28, 2001 - FACUNDO T. BAUTISTA v. PUYAT VINYL PRODUCTS

  • G.R. No. 140812 August 28, 2001 - CANDIDO ALFARO v. COURT OF APPEALS, ET AL.

  • G.R. No. 143256 August 28, 2001 - RODOLFO FERNANDEZ, ET AL. v. ROMEO FERNANDEZ, ET AL.

  • G.R. No. 144653 August 28, 2001 - BANK OF THE PHIL. ISLANDS v. COMMISSIONER OF INTERNAL REVENUE

  • A.M. No. P-00-1415-MeTC August 30, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. TERESITA Q. ORBIGO-MARCELO

  • G.R. No. 111709 August 30, 2001 - PEOPLE OF THE PHIL. v. ROGER P. TULIN, ET AL.

  • G.R. No. 119811 August 30, 2001 - SOCORRO S. TORRES, ET AL. v. DEODORO J. SISON, ET AL.

  • G.R. No. 123980 August 30, 2001 - PEOPLE OF THE PHIL. v. MANUEL CALIMLIM

  • G.R. No. 127905 August 30, 2001 - PEOPLE OF THE PHIL. v. DANILO REMUDO

  • G.R. No. 129093 August 30, 2001 - JOSE D. LINA, ET AL. v. FRANCISCO DIZON PAÑO, ET AL.

  • G.R. No. 133113 August 30, 2001 - EDGAR H. ARREZA v. MONTANO M. DIAZ

  • G.R. No. 136280 August 30, 2001 - ORCHARD REALTY and DEV’T CORP. v. REPUBLIC OF THE PHIL, ET AL.

  • G.R. No. 139083 August 30, 2001 - FLORENCIA PARIS v. DIONISIO A. ALFECHE

  • G.R. No. 140229 August 30, 2001 - PEOPLE OF THE PHIL. v. HENRY BALMOJA

  • G.R. No. 140995 August 30, 2001 - PEOPLE OF THE PHIL. v. DANILO M. REGALA

  • G.R. No. 141128 August 30, 2001 - PEOPLE OF THE PHIL. v. ORPIANO DELOS SANTOS

  • G.R. No. 141283 August 30, 2001 - SEGOVIA DEVELOPMENT CORP. v. J.L. DUMATOL REALTY

  • G.R. No. 144442 August 30, 2001 - JESUS SALVATIERRA v. THE PEOPLE OF THE PHILIPPINES

  • A. M. No. 00-7-299-RTC August 31, 2001 - REQUEST FOR CONSOLIDATION OF CIVIL CASE NO. R-1692 RTC BR. 45

  • A.M. No. 00-8-03-SB August 31, 2001 - RE: UNNUMBERED RESOLUTION OF THE SANDIGANBAYAN RE ACQUISITION OF THREE [3] MOTOR VEHICLES FOR OFFICIAL USE OF JUSTICES

  • A.M. No. P-99-1316 August 31, 2001 - KENNETH S. NEELAND v. ILDEFONSO M. VILLANUEVA

  • G.R. Nos. 132548-49 August 31, 2001 - PEOPLE OF THE PHILIPPINES v. ALEJO MIASCO

  • G.R. No. 141211 August 31, 2001 - CITY WARDEN OF THE MANILA CITY JAIL v. RAYMOND S. ESTRELLA, ET AL.

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    G.R. No. 142838   August 9, 2001 - ABELARDO B. LICAROS v. ANTONIO P. GATMAITAN

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 142838. August 9, 2001.]

    ABELARDO B. LICAROS, Petitioner, v. ANTONIO P. GATMAITAN, Respondent.

    D E C I S I O N


    GONZAGA-REYES, J.:


    This is a petition for review on certiorari under Rule 45 of the Rules of Court. The petition seeks to reverse and set aside the Decision 1 dated February 10, 2000 of the Court of Appeals and its Resolution 2 dated April 7, 2000 denying petitioner’s Motion for Reconsideration thereto. The appellate court decision reversed the Decision 3 dated November 11, 1997 of the Regional Trial Court of Makati, Branch 145 in Civil Case No. 96-1211.chanrob1es virtua1 1aw 1ibrary

    The facts of the case, as stated in the Decision of the Court of Appeals dated February 10, 2000, are as follows:jgc:chanrobles.com.ph

    "The Anglo-Asean Bank and Trust Limited (Anglo-Asean, for brevity), is a private bank registered and organized to do business under the laws of the Republic of Vanuatu but not in the Philippines. Its business consists primarily in receiving fund placements by way of deposits from institutions and individual investors from different parts of the world and thereafter investing such deposits in money market placements and potentially profitable capital ventures in Hongkong, Europe and the United States for the purpose of maximizing the returns on those investments.

    Enticed by the lucrative prospects of doing business with Anglo-Asean, Abelardo Licaros, a Filipino businessman, decided to make a fund placement with said bank sometime in the 1980’s. As it turned out, the grim outcome of Licaros’ foray in overseas fund investment was not exactly what he envisioned it to be. More particularly, Licaros, after having invested in Anglo-Asean, encountered tremendous and unexplained difficulties in retrieving, not only the interest or profits, but even the very investments he had put in Anglo-Asean.

    Confronted with the dire prospect of not getting back any of his investments, Licaros then decided to seek the counsel of Antonio P. Gatmaitan, a reputable banker and investment manager who had been extending managerial, financial and investment consultancy services to various firms and corporations both here and abroad. To Licaros’ relief, Gatmaitan was only too willing enough to help. Gatmaitan voluntarily offered to assume the payment of Anglo-Asean’s indebtedness to Licaros subject to certain terms and conditions. In order to effectuate and formalize the parties’ respective commitments, the two executed a notarized MEMORANDUM OF AGREEMENT on July 29, 1988 (Exh. "B" ; also Exhibit "1"), the full text of which reads:chanrob1es virtual 1aw library

    ‘Memorandum of Agreement

    KNOW ALL MEN BY THESE PRESENTS:chanrob1es virtual 1aw library

    This MEMORANDUM OF AGREEMENT made and executed this 29th day of July 1988, at Makati by and between:chanrob1es virtual 1aw library

    ABELARDO B. LICAROS, Filipino, of legal age and holding office at Concepcion Building, Intramuros, Manila hereinafter referred to as THE PARTY OF THE FIRST PART,

    and

    ANTONIO P. GATMAITAN, Filipino, of legal age and residing at 7 Mangyan St., La Vista, hereinafter referred to as the PARTY OF THE SECOND PART,chanrob1es virtua1 1aw 1ibrary

    WITNESSETH THAT:chanrob1es virtual 1aw library

    WHEREAS, ANGLO-ASEAN BANK & TRUST, a company incorporated by the Republic of Vanuatu, hereinafter referred to as the OFFSHORE BANK, is indebted to the PARTY OF THE FIRST PART in the amount of US dollars; ONE HUNDRED FIFTY THOUSAND ONLY (US$150,000) which debt is now due and demandable.

    WHEREAS, the PARTY OF THE FIRST PART has encountered difficulties in securing full settlement of the said indebtedness from the OFFSHORE BANK and has sought a business arrangement with the PARTY OF THE SECOND PART regarding his claims;

    WHEREAS, the PARTY OF THE SECOND PART, with his own resources and due to his association with the OFFSHORE BANK, has offered to the PARTY OF THE FIRST PART to assume the payment of the aforesaid indebtedness, upon certain terms and conditions, which offer, the PARTY OF THE FIRST PART has accepted;chanrob1es virtua1 1aw 1ibrary

    WHEREAS, the parties herein have come to an agreement on the nature, form and extent of their mutual prestations which they now record herein with the express conformity of the third parties concerned;

    NOW, THEREFORE, for and in consideration of the foregoing and the mutual covenants stipulated herein, the PARTY OF THE FIRST PART and the PARTY OF THE SECOND PART have agreed, as they do hereby agree, as follows:chanrob1es virtual 1aw library

    1. The PARTY OF THE SECOND PART hereby undertakes to pay the PARTY OF THE FIRST PART the amount of US DOLLARS ONE HUNDRED FIFTY THOUSAND ((US$150,000) payable in Philippine Currency at the fixed exchange rate of Philippine Pesos 21 to US$1 without interest on or before July 15, 1993.

    For this purpose, the PARTY OF THE SECOND PART shall execute and deliver a non negotiable promissory note, bearing the aforesaid material consideration in favor of the PARTY OF THE FIRST PART upon execution of this MEMORANDUM OF AGREEMENT, which promissory note shall form part as ANNEX A hereof.chanrob1es virtua1 1aw 1ibrary

    2. For and in consideration of the obligation of the PARTY OF THE SECOND PART, the PARTY OF THE FIRST does hereby;

    a. Sell, assign, transfer and set over unto the PARTY OF THE SECOND PART that certain debt now due and owing to the PARTY OF THE FIRST PART by the OFFSHORE BANK, to the amount of US Dollars One Hundred Fifty Thousand plus Interest due and accruing thereon;

    b. Grant the PARTY OF THE SECOND PART the full power and authority, for his own use and benefit, but at his own cost and expense, to demand, collect, receive, compound, compromise and give acquittance for the same or any part thereof, and in the name of the PARTY OF THE FIRST PART, to prosecute, and withdraw any suit or proceedings therefor;chanrob1es virtua1 1aw 1ibrary

    c. Agree and stipulate that the debt assigned herein is justly owing and due to the PARTY OF THE FIRST PART from the said OFFSHORE BANK, and that the PARTY OF THE FIRST PART has not done and will not cause anything to be done to diminish or discharge said debt, or to delay or prevent the PARTY OF THE SECOND PART from collecting the same; and;

    d. At the request of the PARTY OF SECOND PART and the latter’s own cost and expense, to execute and do all such further acts and deeds as shall be reasonably necessary for proving said debt and to more effectually enable the PARTY OF THE SECOND PART to recover the same in accordance with the true intent and meaning of the arrangements herein.

    IN WITNESS WHEREOF, the parties have caused this MEMORANDUM OF AGREEMENT to be signed on the date and place first written above.

    Sgd. Sgd.

    ABELARDO B. LICAROS ANTONIO P. GATMAITAN

    PARTY OF THE FIRST PART PARTY OF THE FIRST PART

    WITH OUR CONFORME:chanrob1es virtual 1aw library

    ANGLO-ASEAN BANK & TRUST

    BY: (Unsigned)

    SIGNED IN THE PRESENCE OF.

    Sgd. (illegible)

    _________________________ _________________________’

    Conformably with his undertaking under paragraph 1 of the aforequoted agreement, Gatmaitan executed in favor of Licaros a NON-NEGOTIABLE PROMISSORY NOTE WITH ASSIGNMENT OF CASH DIVIDENDS (Exhs. "A" ; also Exh. "2"), which promissory note, appended as Annex "A" to the same Memorandum of Agreement, states in full, thus

    "NON-NEGOTIABLE PROMISSORY NOTE

    WITH ASSIGNMENT OF CASH DIVIDENDS

    This promissory note is Annex A of the Memorandum of Agreement executed between Abelardo B. Licaros and Antonio P. Gatmaitan, on ______ 1988 at Makati, Philippines and is an integral part of said Memorandum of Agreement.

    P3,150,000.

    On or before July 15, 1993, I promise to pay to Abelardo B. Licaros the sum of Philippine Pesos 3,150,000 (P3,150,000) without interest as material consideration for the full settlement of his money claims from ANGLO-ASEAN BANK, referred to in the Memorandum of Agreement as the ‘OFFSHORE BANK’.chanrob1es virtua1 1aw 1ibrary

    As security for the payment of this Promissory Note, I hereby ASSIGN, CEDE and TRANSFER, Seventy Percent (70%) of ALL CASH DIVIDENDS, that may be due or owing to me as the registered owner of ________________ (________) shares of stock in the Prudential Life Realty, Inc.

    This assignment shall likewise include SEVENTY PERCENT (70%) of cash dividends that may be declared by Prudential Life Realty, Inc. and due or owing to Prudential Life Plan, Inc., of which I am a stockholder, to the extent of or in proportion to my aforesaid shareholding in Prudential Life Plan, Inc., the latter being the holding company of Prudential Life Realty, Inc.

    In the event that I decide to sell or transfer my aforesaid shares in either or both the Prudential Life Plan, Inc. or Prudential Life Realty, Inc. and the Promissory Note remains unpaid or outstanding, I hereby give Mr. Abelardo B. Licaros the first option to buy the said shares.chanrob1es virtua1 1aw 1ibrary

    Manila, Philippines

    July ____, 1988

    (SGD.)

    Antonio P. Gatmaitan

    7 Mangyan St., La Vista, QC

    Signed in the Presence of

    (SGD.)

    ________________ _______________

    Francisco A. Alba

    President, Prudential Life Plan, Inc." .

    Thereafter, Gatmaitan presented to Anglo-Asean the Memorandum of Agreement earlier executed by him and Licaros for the purpose of collecting the latter’s placement thereat of U.S.$150,000.00. Albeit the officers of Anglo-Asean allegedly committed themselves to "look into [this matter]", no formal response was ever made by said bank to either Licaros or Gatmaitan. To date, Anglo-Asean has not acted on Gatmaitan’s monetary claims.chanrob1es virtua1 1aw 1ibrary

    Evidently, because of his inability to collect from Anglo-Asean, Gatmaitan did not bother anymore to make good his promise to pay Licaros the amount stated in his promissory note (Exh. "A" ; also Exh. 2"). Licaros, however, thought differently. He felt that he had a right to collect on the basis of the promissory note regardless of the outcome of Gatmaitan’s recovery efforts. Thus, in July 1996, Licaros, thru counsel, addressed successive demand letters to Gatmaitan (Exhs. "C" and "D"), demanding payment of the latter’s obligations under the promissory note. Gatmaitan, however, did not accede to these demands.

    Hence, on August 1, 1996, in the Regional Trial Court at Makati, Licaros filed the complaint in this case. In his complaint, docketed in the court below as Civil Case No. 96-1211, Licaros prayed for a judgment ordering Gatmaitan to pay him the following:chanrob1es virtual 1aw library

    ‘a) Principal Obligation in the amount of Three Million Five Hundred Thousand Pesos (P3,500,000.00);

    b) Legal interest thereon at the rate of six (6%) percent per annum from July 16, 1993 when the amount became due until the obligation is fully paid;chanrob1es virtua1 1aw 1ibrary

    c) Twenty percent (20%) of the amount due as reasonable attorney’s fees;

    d) Costs of the suit.’" 4

    After trial on the merits, the court a quo rendered judgment in favor of petitioner Licaros and found respondent Gatmaitan liable under the Memorandum of Agreement and Promissory Note for P3,150,000.00 plus 12% interest per annum from July 16, 1993 until the amount is fully paid. Respondent was likewise ordered to pay attorney’s fees of P200,000.00. 5

    Respondent Gatmaitan appealed the trial court’s decision to the Court of Appeals. In a decision promulgated on February 10, 2000, the appellate court reversed the decision of the trial court and held that respondent Gatmaitan did not at any point become obligated to pay to petitioner Licaros the amount stated in the promissory note. In a Resolution dated April 7, 2000, the Court of Appeals denied petitioner’s Motion for Reconsideration of its February 10, 2000 Decision.

    Hence this petition for review on certiorari where petitioner prays for the reversal of the February 10, 2000 Decision of the Court of Appeals and the reinstatement of the November 11, 1997 decision of the Regional Trial Court.chanrob1es virtua1 1aw 1ibrary

    The threshold issue for the determination of this Court is whether the Memorandum of Agreement between petitioner and respondent is one of assignment of credit or one of conventional subrogation. This matter is determinative of whether or not respondent became liable to petitioner under the promissory note considering that its efficacy is dependent on the Memorandum of Agreement, the note being merely an annex to the said memorandum. 6

    An assignment of credit has been defined as the process of transferring the right of the assignor to the assignee who would then have the right to proceed against the debtor. The assignment may be done gratuitously or onerously, in which case, the assignment has an effect similar to that of a sale. 7

    On the other hand, subrogation has been defined as the transfer of all the rights of the creditor to a third person, who substitutes him in all his rights. It may either be legal or conventional. Legal subrogation is that which takes place without agreement but by operation of law because of certain acts. Conventional subrogation is that which takes place by agreement of parties. 8

    The general tenor of the foregoing definitions of the terms "subrogation" and "assignment of credit" may make it seem that they are one and the same which they are not. A noted expert in civil law notes their distinctions thus:jgc:chanrobles.com.ph

    "Under our Code, however, conventional subrogation is not identical to assignment of credit. In the former, the debtors consent is necessary; in the latter it is not required. Subrogation extinguishes the obligation and gives rise to a new one; assignment refers to the same right which passes from one person to another. The nullity of an old obligation may be cured by subrogation, such that a new obligation will be perfectly valid; but the nullity of an obligation is not remedied by the assignment of the creditor’s right to another." 9

    For our purposes, the crucial distinction deals with the necessity of the consent of the debtor in the original transaction. In an assignment of credit, the consent of the debtor is not necessary in order that the assignment may fully produce legal effects. 10 What the law requires in an assignment of credit is not the consent of the debtor but merely notice to him as the assignment takes effect only from the time he has knowledge thereof. 11 A creditor may, therefore, validly assign his credit and its accessories without the debtor’s consent. 12 On the other hand, conventional subrogation requires an agreement among the three parties concerned — the original creditor, the debtor, and the new creditor. It is a new contractual relation based on the mutual agreement among all the necessary parties. Thus, Article 1301 of the Civil Code explicitly states that" (C)onventional subrogation of a third person requires the consent of the original parties and of the third person." chanrobles virtual law library

    The trial court, in finding for the petitioner, ruled that the Memorandum of Agreement was in the nature of an assignment of credit. As such, the court a quo held respondent liable for the amount stated in the said agreement even if the parties thereto failed to obtain the consent of Anglo-Asean Bank. On the other hand, the appellate court held that the agreement was one of conventional subrogation which necessarily requires the agreement of all the parties concerned. The Court of Appeals thus ruled that the Memorandum of Agreement never came into effect due to the failure of the parties to get the consent of Anglo-Asean Bank to the agreement and, as such, respondent never became liable for the amount stipulated.

    We agree with the finding of the Court of Appeals that the Memorandum of Agreement dated July 29, 1988 was in the nature of a conventional subrogation which requires the consent of the debtor, Anglo-Asean Bank, for its validity. We note with approval the following pronouncement of the Court of Appeals:jgc:chanrobles.com.ph

    "Immediately discernible from above is the common feature of contracts involving conventional subrogation, namely, the approval of the debtor to the subrogation of a third person in place of the creditor. That Gatmaitan and Licaros had intended to treat their agreement as one of conventional subrogation is plainly borne by a stipulation in their Memorandum of Agreement, to wit:jgc:chanrobles.com.ph

    "WHEREAS, the parties herein have come to an agreement on the nature, form and extent of their mutual prestations which they now record herein with the express conformity of the third parties concerned" (Emphasis supplied),

    which third party is admittedly Anglo-Asean Bank.

    Had the intention been merely to confer on appellant the status of a mere "assignee" of appellee’s credit, there is simply no sense for them to have stipulated in their agreement that the same is conditioned on the "express conformity" thereto of Anglo-Asean Bank. That they did so only accentuates their intention to treat the agreement as one of conventional subrogation. And it is basic in the interpretation of contracts that the intention of the parties must be the one pursued (Rule 130, Section 12, Rules of Court).chanrob1es virtua1 1aw 1ibrary

    Given our finding that the Memorandum of Agreement (Exh. "B" ; also Exh. "1"), is not one of "assignment of credit" but is actually a "conventional subrogation", the next question that comes to mind is whether such agreement was ever perfected at all. Needless to state, the perfection — or non-perfection — of the subject agreement is of utmost relevance at this point. For, if the same Memorandum of Agreement was actually perfected, then it cannot be denied that Gatmaitan still has a subsisting commitment to pay Licaros on the basis of his promissory note. If not, Licaros’ suit for collection must necessarily fail.

    Here, it bears stressing that the subject Memorandum of Agreement expressly requires the consent of Anglo-Asean to the subrogation. Upon whom the task of securing such consent devolves, be it on Licaros or Gatmaitan, is of no significance. What counts most is the hard reality that there has been an abject failure to get Anglo-Asean’s nod of approval over Gatmaitan’s being subrogated in the place of Licaros. Doubtless, the absence of such conformity on the part of Anglo-Asean, which is thereby made a party to the same Memorandum of Agreement, prevented the agreement from becoming effective, much less from being a source of any cause of action for the signatories thereto." 13

    Aside for the ‘whereas clause" cited by the appellate court in its decision, we likewise note that on the signature page, right under the place reserved for the signatures of petitioner and respondent, there is, typewritten, the words "WITH OUR CONFORME." Under this notation, the words "ANGLO-ASEAN BANK AND TRUST" were written by hand. 14 To our mind, this provision which contemplates the signed conformity of Anglo-Asean Bank, taken together with the aforementioned preambulatory clause leads to the conclusion that both parties intended that Anglo-Asean Bank should signify its agreement and conformity to the contractual arrangement between petitioner and Respondent. The fact that Anglo-Asean Bank did not give such consent rendered the agreement inoperative considering that, as previously discussed, the consent of the debtor is needed in the subrogation of a third person to the rights of a creditor.

    In this petition, petitioner assails the ruling of the Court of Appeals that what was entered into by the parties was a conventional subrogation of petitioner’s rights as creditor of the Anglo-Asean Bank which necessarily requires the consent of the latter. In support, petitioner alleges that: (1) the Memorandum of Agreement did not create a new obligation and, as such, the same cannot be a conventional subrogation; (2) the consent of Anglo-Asean Bank was not necessary for the validity of the Memorandum of Agreement; (3) assuming that such consent was necessary, respondent failed to secure the same as was incumbent upon him; and (4) respondent himself admitted that the transaction was one of assignment of credit.chanrob1es virtua1 1aw 1ibrary

    Petitioner argues that the parties to the Memorandum of Agreement could not have intended the same to be a conventional subrogation considering that no new obligation was created. According to petitioner, the obligation of Anglo-Asean Bank to pay under Contract No. 00193 was not extinguished and in fact, it was the basic intention of the parties to the Memorandum of Agreement to enforce the same obligation of Anglo-Asean Bank under its contract with petitioner. Considering that the old obligation of Anglo-Asean Bank under Contract No. 00193 was never extinguished under the Memorandum of Agreement, it is contended that the same could not be considered as a conventional subrogation.

    We are not persuaded.

    It is true that conventional subrogation has the effect of extinguishing the old obligation and giving rise to a new one. However, the extinguishment of the old obligation is the effect of the establishment of a contract for conventional subrogation. It is not a requisite without which a contract for conventional subrogation may not be created. As such, it is not determinative of whether or not a contract of conventional subrogation was constituted.

    Moreover, it is of no moment that the subject of the Memorandum of Agreement was the collection of the obligation of Anglo-Asean Bank to petitioner Licaros under Contract No. 00193. Precisely, if conventional subrogation had taken place with the consent of Anglo-Asean Bank to effect a change in the person of its creditor, there is necessarily created a new obligation whereby Anglo-Asean Bank must now give payment to its new creditor, herein Respondent.cralawred

    Petitioner next argues that the consent or conformity of Anglo-Asean Bank is not necessary to the validity of the Memorandum of Agreement as the evidence on record allegedly shows that it was never the intention of the parties thereto to treat the same as one of conventional subrogation. He claims that the preambulatory clause requiring the express conformity of third parties, which admittedly was Anglo-Asean Bank, is a mere surplusage which is not necessary to the validity of the agreement.

    As previously discussed, the intention of the parties to treat the Memorandum of Agreement as embodying a conventional subrogation is shown not only by the "whereas clause" but also by the signature space captioned "WITH OUR CONFORME" reserved for the signature of a Anglo-Asean Bank. These provisions in the aforementioned Memorandum of Agreement may not simply be disregarded or dismissed as superfluous.chanrob1es virtua1 1aw 1ibrary

    It is a basic rule in the interpretation of contracts that" (t)he various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which may result from all of them taken jointly." 15 Moreover, under our Rules of Court, it is mandated that" (i)n the construction of an instrument where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all." 16 Further, jurisprudence has laid down the rule that contracts should be so construed as to harmonize and give effect to the different provisions thereof. 17

    In the case at bench, the Memorandum of Agreement embodies certain provisions that are consistent with either a conventional subrogation or assignment of credit. It has not been shown that any clause or provision in the Memorandum of Agreement is inconsistent or incompatible with a conventional subrogation. On the other hand, the two cited provisions requiring consent of the debtor to the memorandum is inconsistent with a contract of assignment of credit. Thus, if we were to interpret the same as one of assignment of credit, then the aforementioned stipulations regarding the consent of Anglo-Asean Bank would be rendered inutile and useless considering that, as previously discussed, the consent of the debtor is not necessary in an assignment of credit.

    Petitioner next argues that assuming that the conformity of Anglo-Asean was necessary to the validity of the Memorandum of Agreement, respondent only had himself to blame for the failure to secure such conformity as was, allegedly, incumbent upon him under the memorandum.chanrob1es virtua1 1aw 1ibrary

    As to this argument regarding the party responsible for securing the conformity of Anglo-Asean Bank, we fail to see how this question would have any relevance on the outcome of this case. Having ruled that the consent of Anglo-Asean was necessary for the validity of the Memorandum of Agreement, the determinative fact is that such consent was not secured by either petitioner or respondent which consequently resulted in the invalidity of the said memorandum.

    With respect to the argument of petitioner that respondent himself allegedly admitted in open court that an assignment of credit was intended, it is enough to say that respondent apparently used the word "assignment" in his testimony in the general sense. Respondent is not a lawyer and as such, he is not so well versed in law that he would be able to distinguish between the concepts of conventional subrogation and of assignment of credit. Moreover, even assuming that there was an admission on his part, such admission is not conclusive on this court as the nature and interpretation of the Memorandum of Agreement is a question of law which may not be the subject of stipulations and admissions. 18

    Considering the foregoing, it cannot then be said that the consent of the debtor Anglo-Asean Bank is not necessary to the validity of the Memorandum of Agreement. As above stated, the Memorandum of Agreement embodies a contract for conventional subrogation and in such a case, the consent of the original parties and the third person is required. 19 The absence of such conformity by Anglo-Asean Bank prevented the Memorandum of Agreement from becoming valid and effective. Accordingly, the Court of Appeals did not err when it ruled that the Memorandum of Agreement was never perfected.

    Having arrived at the above conclusion, the Court finds no need to discuss the other issues raised by petitioner.

    WHEREFORE, the instant petition is DENIED and the Decision of the Court of Appeals dated February 10, 2000 and its Resolution dated April 7, 2000 are hereby AFFIRMED.chanrob1es virtua1 1aw 1ibrary

    Melo, Vitug and Panganiban, JJ., concur.

    Sandoval-Gutierrez, J., is on leave.

    Endnotes:



    1. Penned by Associate Justice Cancio Garcia and concurred in by Associate Justices Romeo J. Callejo and Presbitero J. Velasco, Jr.; Rollo, pp. 38-53.

    2. Rollo, pp. 55-56.

    3. Penned by Judge Francisco Donato Villanueva; Rollo, pp. 77-92.

    4. Court of Appeals Decision dated February 10, 2000, pp. 1-7; Rollo, pp. 395.

    5. Rollo, p. 92.

    6. Rollo, p. 78.

    7. Rodriguez v. Court of Appeals, 207 SCRA 533; Nyco Sales Corp. v. BA Finance Corp., 200 SCRA 637.

    8. Chemphil Import and Export Corp. v. Court of Appeals, 251 SCRA 257 citing Tolentino, Commentaries and Jurisprudence on the Civil Code of the Philippines, Volume IV, pp. 401-402.

    9. Tolentino, Commentaries and Jurisprudence on the Civil Code of the Philippines, 1991 Edition, Volume IV, p. 401.

    10. Rodriguez v. Court of Appeals, supra, citing Sison and Sison v. Yap Tico and Avancena, 37 Phil. 587.

    11. Article 1626, New Civil Code.

    12. National Investment and Development Co. v. De los Angeles, 40 SCRA 489.

    13. Court of Appeals Decision dated February 10, 2000, pp. 12-13; Rollo, pp. 50-51.

    14. Rollo, p. 81.

    15. Article 1374, New Civil Code; China Banking Corporation v. Court of Appeals, 265 SCRA 327.

    16. Section 11, Rule 130, Revised Rules of Court.

    17. Phil-Am General Insurance v. Court of Appeals, 114 SCRA 4; Reparations Commission v. Northern Lines, Inc., 34 SCRA 203.

    18. PCI Automation Center v. NLRC, 252 SCRA 493; Tabas v. California Manufacturing Corp., 169 SCRA 497.

    19. Art. 1301, New Civil Code.

    G.R. No. 142838   August 9, 2001 - ABELARDO B. LICAROS v. ANTONIO P. GATMAITAN


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