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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
 

   
January-2011 Jurisprudence                 

  • G.R. No. 181298 : January 10, 2011 BELLE CORPORATION, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.

  • G.R. No. 176339 : January 10, 2011 DO-ALL METALS INDUSTRIES, INC., SPS. DOMINGO LIM and LELY KUNG LIM, Petitioners, v. SECURITY BANK CORP., TITOLAIDO E. PAYONGAYONG, EVYLENE C. SISON, PHIL. INDUSTRIAL SECURITY AGENCY CORP. and GIL SILOS, Respondents.

  • G.R. No. 188792 : January 10, 2011 SPOUSES GEORGE R. TAN and SUSAN L. TAN, Petitioners, v. BANCO DE ORO UNIBANK, INC., Respondent. G.R. Nos. 190677-78 : January 10, 2011 GEORGE R. TAN and SUSAN L. TAN, Petitioners, v. BANCO DE ORO UNIVERSAL BANK, Respondent. G.R. Nos. 190699-700 : January 10, 2011 BANCO DE ORO UNIBANK, INC., Petitioner, v. GEORGE R. TAN and SUSAN L. TAN, Respondents.

  • G.R. No. 190889 : January 10, 2011 ELENITA C. FAJARDO, Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent.

  • G.R. No. 180452 : January 10, 2011 PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. Ng Yik Bun, Kwok Wai Cheng, Chang Chaun Shi, Chua Shilou Hwan, Kan Shun Min, and RaymOnd S. Tan, Accused-Appellants.

  • G.R. No. 171379 : January 10, 2011 JOSE MARQUES and MAXILITE TECHNOLOGIES, INC., Petitioners, v. FAR EAST BANK AND TRUST COMPANY, FAR EAST BANK INSURANCE BROKERS, INC., and MAKATI INSURANCE COMPANY, Respondents. G.R. No. 171419 : January 10, 2011 FAR EAST BANK AND TRUST COMPANY and MAKATI INSURANCE COMPANY, Petitioners, v. JOSE MARQUES and MAXILITE TECHNOLOGIES, INC., Respondents.

  • G.R. No. 181930 : January 10, 2011 MILAGROS SALTING, Petitioner, v. JOHN VELEZ and CLARISSA R. VELEZ, Respondents.

  • A.M. No. RTJ-09-2188 (Formerly A.M. OCA-IPI No. 08-2995-RTJ) : January 10, 2011 PROSECUTOR HILARIO RONSON H. TILAN, Complainant, v. JUDGE ESTER PISCOSO-FLOR, RTC, BRANCH 34, BANAUE, IFUGAO, Respondent.

  • G.R. No. 184954 : January 10, 2011 PEOPLE OF THE PHILIPPINES, Appellee, v. JAY LORENA y LABAG, Appellant.

  • G.R. No. 190122 : January 10, 2011 SPOUSES ISAGANI and DIOSDADA CASTRO, Petitioners, v. SPOUSES REGINO SE and VIOLETA DELA CRUZ, SPOUSES EDUARDO and CHARITO PEREZ and MARCELINO TOLENTINO, Respondents.

  • G.R. No. 188314 : January 10, 2011 PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. KHADDAFY JANJALANI, GAMAL B. BAHARAN a.k.a. Tapay, ANGELO TRINIDAD a.k.a. Abu Khalil, GAPPAL BANNAH ASALI a.k.a. Maidan or Negro, JAINAL SALI a.k.a. Abu Solaiman, ROHMAT ABDURROHIM a.k.a. Jackie or Zaky, and other JOHN and JANE DOES, Accused, GAMAL B. BAHARAN a.k.a. Tapay, ANGELO TRINIDAD a.k.a. Abu Khalil, and ROHMAT ABDURROHIM a.k.a. Abu Jackie or Zaky, Accused-Appellants.

  • G.R. No. 178895 : January 10, 2011 REPUBLIC OF THE PHILIPPINES, represented by the DEPARTMENT OF AGRARIAN REFORM, through the HON. SECRETARY NASSER C. PANGANDAMAN, Petitioner, v. SALVADOR N. LOPEZ AGRI-BUSINESS CORP., represented by SALVADOR N. LOPEZ, JR., President and General Manager, Respondent. G.R. No. 179071 : January 10, 2011 SALVADOR N. LOPEZ AGRI-BUSINESS CORP., represented by SALVADOR N. LOPEZ, JR., President and General Manager, Petitioner, v. DEPARTMENT OF AGRARIAN REFORM, through the Honorable Secretary, Respondent.

  • G.R. No. 179446 : January 10, 2011 LOADMASTERS CUSTOMS SERVICES, INC., Petitioner, v. GLODEL BROKERAGE CORPORATION AND R&B INSURANCE CORPORATION, Respondents.

  • G.R. No. 182547 : January 10, 2011 CHINA BANKING CORPORATION, Petitioner, v. ARMI S. ABEL, Respondent.

  • G.R. No. 168646 : January 12, 2011 LUZON DEVELOPMENT BANK, Petitioner, v. ANGELES CATHERINE ENRIQUEZ, Respondent. G.R. No. 168666 : January 12, 2011 DELTA DEVELOPMENT and MANAGEMENT SERVICES, INC., Petitioner, v. ANGELES CATHERINE ENRIQUEZ and LUZON DEVELOPMENT BANK, Respondents.

  • G.R. No. 167291 : January 12, 2011 PRINCE TRANSPORT, INC. and MR. RENATO CLAROS, Petitioners, v. DIOSDADO GARCIA, LUISITO GARCIA, RODANTE ROMERO, REX BARTOLOME, FELICIANO GASCO, JR., DANILO ROJO, EDGAR SANFUEGO, AMADO GALANTO, EUTIQUIO LUGTU, JOEL GRAMATICA, MIEL CERVANTES, TERESITA CABANES, ROE DELA CRUZ, RICHELO BALIDOY, VILMA PORRAS, MIGUELITO SALCEDO, CRISTINA GARCIA, MARIO NAZARENO, DINDO TORRES, ESMAEL RAMBOYONG, ROBETO* MANO, ROGELIO BAGAWISAN, ARIEL SNACHEZ, ESTAQULO VILLAREAL, NELSON MONTERO, GLORIA ORANTE, HARRY TOCA, PABLITO MACASAET and RONALD GARCITA, Respondents.

  • G.R. No. 172508 : January 12, 2011 HEIRS OF SANTIAGO C. DIVINAGRACIA, Petitioner, v. HON. J. CEDRICK O. RUIZ, Presiding Judge, Branch 39, Regional Trial Court, Iloilo City; GERRY D. SUMACULUB, as Clerk of Court of the Regional Trial Court; BOMBO RADYO HOLDINGS, INC., and ROGELIO M. FLORETE, SR., Respondents

  • G.R. No. 178296 : January 12, 2011 THE HERITAGE HOTEL MANILA, acting through its owner, GRAND PLAZA HOTEL CORPORATION, Petitioner, v. NATIONAL UNION OF WORKERS IN THE HOTEL, RESTAURANT AND ALLIED INDUSTRIES-HERITAGE HOTEL MANILA SUPERVISORS CHAPTER (NUWHRAIN-HHMSC), Respondent.

  • G.R. No. 179419 : January 12, 2011 DURBAN APARTMENTS CORPORATION, doing business under the name and style of City Garden Hotel, Petitioner, v. PIONEER INSURANCE AND SURETY CORPORATION, Respondent.

  • G.R. NO. 189806 : January 12, 2011 PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. FRANCISCO MANLANGIT y TRESBALLES, Accused-Appellant.

  • G.R. No. 191721 : January 12, 2011 PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. ROGELIO DOLORIDO y ESTRADA, Accused-Appellant.

  • G.R. No. 175330 : January 12, 2010 PEOPLE OF THE PHILIPPINES, Appellee, v. RODOLFO CAPITLE and ARTURO NAGARES, Appellants.

  • G.R. No. 175891 : January 12, 2011 REPUBLIC OF THE PHILIPPINES, Petitioner, v. RESINS, INCORPORATED, Respondent.

  • G.R. No. 176019 : January 12, 2011 BPI FAMILY SAVINGS BANK, INC., Petitioner, v. GOLDEN POWER DIESEL SALES CENTER, INC. and RENATO C. TAN, Respondents.

  • A.M. No. P-09-2696 [Formerly A.M. OCA IPI No. 08-2956-P] : January 12, 2011 FREDDY H. REYES, Complainant, v. VIVIAN L. PABILANE, COURT INTERPRETER, MUNICIPAL TRIAL COURT, TAGKAWAYAN, QUEZON, Respondent.

  • G.R. No. 190640 : January 12, 2011 PEOPLE OF THE PHILIPPINES, Appellee, v. LUIS PAJARIN y DELA CRUZ and EFREN PALLAYA y TUVIERA, Appellants.

  • A.M. No. P-06-2179 (Formerly A.M. No. 06-5-169-MCTC) : January 12, 2011 OFFICE OF THE COURT ADMINISTRATOR, Complainant, v. MERLINDA T. CUACHON, Clerk of Court, and FE P. ALEJANO, Court Stenographer, both of the MCTC, Ilog-Candoni, Negros Occidental, Respondents.

  • A.C. No. 8620 : January 12, 2011 JESSIE R. DE LEON, Complainant, v. ATTY. EDUARDO G. CASTELO, Respondent.

  • G.R. No. 190521 : January 12, 2011 LETICIA TAN, MYRNA MEDINA, MARILOU SPOONER, ROSALINDA TAN, and MARY JANE TAN, MARY LYN TAN, CELEDONIO TAN, JR., MARY JOY TAN, and MARK ALLAN TAN, represented herein by their mother, LETICIA TAN, Petitioners, v. OMC CARRIERS, INC. and BONIFACIO ARAMBALA, Respondents.

  • G.R. No. 148076 : January 12, 2011 ANTONIO M. CARANDANG, Petitioner, v. HONORABLE ANIANO A. DESIERTO, OFFICE OF THE OMBUDSMAN, Respondent. G.R. No. 153161 : January 12, 2011 ANTONIO M. CARANDANG, Petitioner, v. SANDIGANBAYAN (FIFTH DIVISION), Respondent.

  • G.R. No. 172378: January 17, 2011 SILICON PHILIPPINES, INC., (Formerly INTEL PHILIPPINES MANUFACTURING, INC.), Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.

  • G.R. No. 185163 : January 17, 2011 PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. CARLO MAGNO AURE y ARNALDO and MELCHOR AUSTRIACO y AGUILA, Accused-Appellants.

  • G.R. No. 176389 : January 18, 2011 ANTONIO LEJANO, Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent. G.R. No. 176864 : January 18, 2011 PEOPLE OF THE PHILIPPINES, Appellee, v. HUBERT JEFFREY P. WEBB, ANTONIO LEJANO, MICHAEL A. GATCHALIAN, HOSPICIO FERNANDEZ, MIGUEL RODRIGUEZ, PETER ESTRADA and GERARDO BIONG, Appellants.

  • CONCURRING OPINION : SERENO, J. : G.R. No. 176389 : January 18, 2011 ANTONIO LEJANO, Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent. G.R. No. 176864 : January 18, 2011 PEOPLE OF THE PHILIPPINES, Appellee, v. HUBERT JEFFREY P. WEBB, ANTONIO LEJANO, MICHAEL A. GATCHALIAN, HOSPICIO FERNANDEZ, MIGUEL RODRIGUEZ, PETER ESTRADA and GERARDO BIONG, Appellants.

  • A.M. No. P-10-2788 : January 18, 2011 OFFICE OF THE COURT ADMINISTRATOR, Complainant, v. CLAUDIO M. LOPEZ, Process Server, Municipal Trial Court, Sudipen, La Union, Respondent.

  • A.M. No. RTJ-09-2198*: January 18, 2011 OFFICE OF THE COURT ADMINISTRATOR, Complainant, v. FORMER JUDGE LEONARDO L. LEONIDA, OF THE REGIONAL TRIAL COURT BRANCH 27, STA. CRUZ, LAGUNA, Respondent.

  • G.R. No. 180388 : January 18, 2011 GREGORIO R. VIGILAR, SECRETARY OF THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS (DPWH), DPWH UNDERSECRETARIES TEODORO E. ENCARNACION AND EDMUNDO E. ENCARNACION AND EDMUNDO V. MIR, DPWH ASSISTANT SECRETARY JOEL L. ALTEA, DPWH REGIONAL DIRECTOR VICENTE B. LOPEZ, DPWH DISTRICT ENGINEER ANGELITO M. TWAÑO, FELIX A. DESIERTO OF THE TECHNICAL WORKING GROUP VALIDATION AND AUDITING TEAM, AND LEONARDO ALVARO, ROMEO N. SUPAN, VICTORINO C. SANTOS OF THE DPWH PAMPANGA 2ND ENGINEERING DISTRICT, Petitioners, v. ARNULFO D. AQUINO , Respondent.

  • G.R. No. 182591 : January 18, 2011 MODESTO AGYAO, JR., Petitioner, v. CIVIL SERVICE COMMISSION, Respondent.

  • G.R. No. 165423: January 19, 2011 NILO PADRE, Petitioner, v. FRUCTOSA BADILLO, FEDILA BADILLO, PRESENTACION CABALLES, EDWINA VICARIO (d) represented by MARY JOY VICARIO-ORBETA and NELSON BADILLO, Respondents.

  • G.R. No. 168757: January 19, 2011 RENATO REAL, Petitioner, v. SANGU PHILIPPINES, INC. and/ or KIICHI ABE, Respondents.

  • G.R. No. 172577 : January 19, 2011 SOLEDAD DALTON, Petitioner, v. FGR REALTY AND DEVELOPMENT CORPORATION, FELIX NG, NENITA NG, and FLORA R. DAYRIT or FLORA REGNER, Respondents.

  • G.R. No. 173085 : January 19, 2011 PHILIPPINE VETERANS BANK, Petitioner, v. BASES CONVERSION DEVELOPMENT AUTHORITY, LAND BANK OF THE PHILIPPINES , ARMANDO SIMBILLO, CHRISTIAN MARCELO, ROLANDO DAVID, RICARDO BUCUD, PABLO SANTOS, AGRIFINA ENRIQUEZ, CONRADO ESPELETA, CATGERUBE CASTRO, CARLITO MERCADO and ALFREDO SUAREZ, Respondent.

  • G.R. No. 178044 : January 19, 2011 ALAIN M. DIÑO, Petitioner, v. MA. CARIDAD L. DIÑO, Respondent.

  • G.R. No. 177937 : January 19, 2011 ROBINSONS GALLERIA/ROBINSONS SUPERMARKET CORPORATION and/or JESS MANUEL, Petitioners, v. IRENE R. RANCHEZ, Respondent.

  • G.R. No. 187725 : January 19, 2011 BENJAMIN JESALVA, Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent.

  • G.R. No. 187917 : January 19, 2011 METROPOLITAN BANK & TRUST COMPANY, Petitioner, v. SPOUSES EDMUNDO MIRANDA and JULIE MIRANDA, Respondents.

  • G.R. No. 176264 : January 10, 2011 PEOPLE OF THE PHILIPPINES, APPELLEE, VS. TERESITA "TESSIE" LAOGO, APPELLANT.

  • A.M. OCA IPI No. 08-127-CA-J : January 11, 2011 RE: LETTER-COMPLAINT OF ATTY. ARIEL SAMSON C. CAYETUNA, ET AL., ALL EMPLOYEES OF ASSOCIATE JUSTICE MICHAEL P. ELBINIAS AGAINST ASSOCIATE JUSTICE MICHAEL P. ELBINIAS, CA - MINDANAO STATION

  • G.R. No. 176264 : January 10, 2011 PEOPLE OF THE PHILIPPINES, APPELLEE, VS. TERESITA "TESSIE" LAOGO, APPELLANT.

  • A.M. OCA IPI No. 08-127-CA-J : January 11, 2011 RE: LETTER-COMPLAINT OF ATTY. ARIEL SAMSON C. CAYETUNA, ET AL., ALL EMPLOYEES OF ASSOCIATE JUSTICE MICHAEL P. ELBINIAS AGAINST ASSOCIATE JUSTICE MICHAEL P. ELBINIAS, CA - MINDANAO STATION

  • A.M. No. 08-4-253-RTC : January 12, 2011 IN RE: REPORT ON THE JUDICIAL AUDIT CONDUCTED IN THE REGIONAL TRIAL COURT, BRANCH 45, URDANETA CITY, PANGASINAN, AND REPORT ON THE INCIDENT AT BRANCH 49, SAME COURT.

  • G.R. No. 178741 : January 17, 2011 ROSALINO L. MARABLE, PETITIONER, VS. MYRNA F. MARABLE, RESPONDENT.

  • A.M. No. RTJ-10-2255 (Formerly OCA IPI No. 10-3335-RTJ) : January 17, 2011 SPOUSES DEMOCRITO AND OLIVIA LAGO, COMPLAINANTS, UDGE GODOFREDO B. ABUL, JR., REGIONAL TRIAL COURT, BRANCH 43, GINGOOG CITY, RESPONDENT.

  • G. R. No. 177790 : January 17, 2011 REPUBLIC OF THE PHILIPPINES, PETITIONER, VS. CARLOS R. VEGA, MARCOS R. VEGA, ROGELIO R. VEGA, LUBIN R. VEGA, HEIRS OF GLORIA R. VEGA, NAMELY: FRACISCO L. YAP, MA. WINONA Y. RODRIGUEZ, MA. WENDELYN V. YAP AND FRANCISCO V. YAP, JR., RESPONDENTS, ROMEA G. BUHAY-OCAMPO, FRANCISCO G. BUHAY, ARCELI G. BUHAY-RODRIGUEZ, ORLANDO G. BUHAY, SOLEDAD G. BUHAY-VASQUEZ, LOIDA G. BUHAY-SENADOSA, FLORENDO G. BUHAY, OSCAR G. BUHAY, ERLYN BUHAY-GINORGA, EVELYN BUHAY-GRANETA, AND EMILIE BUHAY-DALLAS, RESPONDENTS-INTERVENORS.

  • G.R. No. 191459 : January 17, 2011 BERNADETH LONDONIO AND JOAN CORCORO, PETITIONERS, VS. BIO RESEARCH, INC. AND WILSON Y. ANG, RESPONDENTS.

  • [A.M. No. RTJ-09-2173 (Formerly A.M. OCA IPI No. 09-3084-RTJ) : January 18, 2011] OFFICE OF THE COURT ADMINISTRATOR, Complainant, v. JUDGE BENJAMIN P. ESTRADA, REGIONAL TRIAL COURT, BRANCH 9, MALAYBALAY CITY, BUKIDNON, AND JUDGE JOSEFINA GENTILES-BACAL, RTC, BRANCH 10, MALAYBALAY CITY, BUKIDNON, Respondents.

  • [A.M. No. P-03-1730 (Formerly OCA IPI No. 02-1469-P) : January 18, 2011] JUDGE PHILBERT I. ITURRALDE, MARTIN GUMARANG, VIC JUMALON, LEONARDO LUCAS, WILFREDO DEUS, CORAZON AZARRAGA AND ALICE BUENAFE, Complainants, v. OIC BRANCH CLERK OF COURT BABE SJ. RAMIREZ, CLERK VIOLETA P. FLORDELIZA AND SHERIFF IV CARLOS A. SALVADOR, Respondents.

  • [A.M. No. RTJ-07-2062* : January 18, 2011] IMELDA R. MARCOS, Complainant, v. JUDGE FERNANDO VIL PAMINTUAN, Respondent.

  • [A.M. No. RTJ-09-2198* : January 18, 2011] OFFICE OF THE COURT ADMINISTRATOR, Complainant, v. FORMER JUDGE LEONARDO L. LEONIDA, OF THE REGIONAL TRIAL COURT BRANCH 27, STA. CRUZ, LAGUNA, Respondent

  • [A.M. No. P-11-2887 (Formerly A.M. No. 09-2-32-MTCRe: Report on the Financial Audit Conducted on the Books of Accounts of the Municipal Trial Court, Pantabangan, Nueva Ecija) : January 18, 2011] OFFICE OF THE COURT ADMINISTRATOR, Complainant, v. MARISSA U. ANGELES,CLERK OF COURT II, MUNICIPAL TRIAL COURT, PANTABANGAN, NUEVA ECIJA, Respondent [A.M. NO. P-10-2880 (FORMERLY OCA IPI NO. 08-2782-P) : January 18, 2011] JUDGE ANALIE C. ALDEA-AROCENA, Complainant, v. MARISSA U. ANGELES, CLERK OF COURT II, MUNICIPAL TRIAL COURT, PANTABANGAN NUEVA ECIJA, Respondent.

  • [A.M. No. 07-6-14-CA : January 18, 2011] RE: ANONYMOUS LETTER RELATIVE TO THE ALLEGED CORRUPTION IN THE COURT OF APPEALS, CAGAYAN DE ORO CITY

  • [A.M. No. P-10-2799 : January 18, 2011] OFFICE OF THE COURT ADMINISTRATOR, Complainant, v. VICTORIO A. DION, FORMER CLERK OF COURT, MUNICIPAL CIRCUIT TRIAL COURT, SAN FABIAN-SAN JACINTO, PANGASINAN, Respondents

  • [G. R. No. 175352 : January 18, 2011] DANTE V. LIBAN, REYNALDO M. BERNARDO AND SALVADOR M. VIARI, Petitioners, v. RICHARD J. GORDON, Respondent. PHILIPPINE NATIONAL RED CROSS, Intervenor

  • [G. R. No. 175352 : January 18, 2011] : CONCURRING OPINION - ABAD, J.: DANTE V. LIBAN, REYNALDO M. BERNARDO AND SALVADOR M. VIARI, Petitioners, v. RICHARD J. GORDON, Respondent. PHILIPPINE NATIONAL RED CROSS, Intervenor.

  • [G. R. No. 175352 : January 18, 2011] : DISSENTING OPINION - CARPIO, J.: DANTE V. LIBAN, REYNALDO M. BERNARDO AND SALVADOR M. VIARI, Petitioners, v. RICHARD J. GORDON, Respondent. PHILIPPINE NATIONAL RED CROSS, Intervenor.

  • [G.R. No. 179617 : January 19, 2011] COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. ASIAN TRANSMISSION CORPORATION, Respondent.

  • [G.R. No. 187917 : January 19, 2011] METROPOLITAN BANK & TRUST COMPANY, Petitioner, v. SPOUSES EDMUNDO MIRANDA AND JULIE MIRANDA, Respondents.

  • [G.R. No. 187725 : January 19, 2011] BENJAMIN JESALVA, Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent.

  • [G.R. No. 173085 : January 19, 2011] PHILIPPINE VETERANS BANK, Petitioner, v. BASES CONVERSION DEVELOPMENT AUTHORITY, LAND BANK OF THE PHILIPPINES, ARMANDO SIMBILLO, CHRISTIAN MARCELO, ROLANDO DAVID, RICARDO BUCUD, PABLO SANTOS, AGRIFINA ENRIQUEZ, CONRADO ESPELETA, CATGERUBE CASTRO, CARLITO MERCADO AND ALFREDO SUAREZ, Respondents.

  • [A.M. No. MTJ-09-1734 [FORMERLY OCA I.P.I. NO. 07-1933-MTJ] : January 19, 2011] FLORENDA V. TOBIAS, Complainant, v. JUDGE MANUEL Q. LIMSIACO, JR., PRESIDING JUDGE, MUNICIPAL CIRCUIT TRIAL COURT, VALLADOLID-SAN ENRIQUE-PULUPANDAN, NEGROS OCCIDENTAL, Respondent.

  • [G.R. No. 165423 : January 19, 2011] NILO PADRE, Petitioner, v. FRUCTOSA BADILLO, FEDILA BADILLO, PRESENTACION CABALLES, EDWINA VICARIO (D) REPRESENTED BY MARY JOY VICARIO-ORBETA AND NELSON BADILLO, Respondents.

  • [G.R. No. 154462 : January 19, 2011] SPOUSES RUBEN AND MYRNA LEYNES, Petitioners, v. FORMER TENTH DIVISION OF THE COURT OF APPEALS, REGIONAL TRIAL COURT, BRANCH 21, BANSALAN, DAVAO DEL SUR, MUNICIPAL CIRCUIT TRIAL COURT, BRANCH 1, BANSALAN, DAVAO DEL SUR, AND SPOUSES GUALBERTO & RENE CABAHUG-SUPERALES, Respondents.

  • [A.M. No. RTJ-11-2267 (Formerly A.M. OCA IPI No. 03-1788-RTJ) : January 19, 2011] MANSUETA T. RUBIN, Complainant, v. JUDGE JOSE Y. AGUIRRE, JR., REGIONAL TRIAL COURT, BRANCH 55, HIMAMAYLAN, NEGROS OCCIDENTAL, Respondent.

  • [G.R. No. 185715 : January 19, 2011] PEOPLE OF THE PHILIPPINES, Appellee, v. ERLINDA CAPUNO Y TISON, Appellant.

  • [G.R. No. 177570 : January 19, 2011] PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. NELIDA DEQUINA Y DIMAPANAN, JOSELITO JUNDOC Y JAPITANA & NORA JINGABO Y CRUZ, Accused-Appellants.

  • [G.R. No. 183843 : January 19, 2011] GOLDEN ARCHES DEVELOPMENT CORPORATION, Petitioner, v. ST. FRANCIS SQUARE HOLDINGS, INC., Respondent.

  • [G.R. No. 180909 : January 19, 2011] EXXONMOBIL PETROLEUM AND CHEMICAL HOLDINGS, INC. - PHILIPPINE BRANCH, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.

  • [G.R. No. 178039 : January 19, 2011] PEOPLE OF THE PHILIPPINES, Plaintiff-Appellee, v. ERNESTO UYBOCO Y RAMOS, Defendant-Appellant.

  • [G.R. No. 184063 : January 24, 2011] CYNTHIA E. YAMBAO, Petitioner, v. REPUBLIC OF THE PHILIPPINES AND PATRICIO E. YAMBAO, Respondents.

  • [G.R. No. 176438 : January 24, 2011] PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC), Petitioner, v. PHILIPPINE COUNTRYSIDE RURAL BANK, INC., RURAL BANK OF CARMEN (CEBU), INC., BANK OF EAST ASIA (MINGLANILLA, CEBU) INC., AND PILIPINO RURAL BANK (CEBU), INC., Respondents.

  • [G.R. No. 160923 : January 24, 2011] MOISES TINIO, JR. AND FRANCIS TINIO, Petitioners, v. NATIONAL POWER CORPORATION, Respondent. [G.R. NO. 161093 : January 24, 2011] NATIONAL POWER CORPORATION, Petitioner, v. MOISES TINIO, JR. AND FRANCIS TINIO, Respondent.

  • [G.R. No. 169942 : January 24, 2011] BARANGAY DASMARIÑAS THRU BARANGAY CAPTAIN MA. ENCARNACION R. LEGASPI, Petitioner, v.CREATIVE PLAY CORNER SCHOOL, DR. AMADO J. PIAMONTE, REGINA PIAMONTE TAMBUNTING, CELINE CONCEPCION LEBRON AND CECILE CUNA COLINA, Respondents.

  • [G.R. No. 172804 : January 24, 2011] GONZALO VILLANUEVA, REPRESENTED BY HIS HEIRS, Petitioner, v. SPOUSES FROILAN AND LEONILA BRANOCO, Respondents.

  • [G.R. No. 192280 : January 25, 2011] SERGIO G. AMORA, JR., PETITIONER, VS. COMMISSION ON ELECTIONS AND ARNIELO S. OLANDRIA, RESPONDENTS.

  • [A.M. No. P-07-2364 : January 25, 2011] REPORT ON THE FINANCIAL AUDIT CONDUCTED ON THE BOOKS OF ACCOUNT OF SONIA L. DY AND ATTY. GRACIANO D. CUANICO, JR., REGIONAL TRIAL COURT, CATARMAN, NORTHERN SAMAR. A.M. NO. P-11-2902 (FORMERLY OCA I.P.I. NO. 08-2790-P) VIRGILIO O. GALLANO, COMPLAINANT, VS. ATTY. GRACIANO D. CUANICO, JR., CLERK OF COURT, AND SONIA L. DY, SOCIAL WELFARE OFFICER II, BOTH FROM THE OFFICE OF THE CLERK OF COURT, REGIONAL TRIAL COURT,CATARMAN, NORTHERN SAMAR, RESPONDENTS.

  • [G.R. No. 167622 : January 25, 2011] GREGORIO V. TONGKO, PETITIONER, VS. THE MANUFACTURERS LIFE INSURANCE CO. (PHILS.), INC. AND RENATO A. VERGEL DE DIOS, RESPONDENTS.

  • [A.M. No. P-90-488 : January 25, 2011] OFFICE OF THE COURT ADMINISTRATOR COMPLAINANT, VS. JOSE M. RAMANO, DEPUTY SHERIFF, REGIONAL TRIAL COURT, BRANCH 140, MAKATI CITY, RESPONDENT.

  • [G.R. No. 191198 : January 26, 2011] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. NENE QUIAMANLON Y MALOG, ACCUSED-APPELLANT.

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    G.R. No. 171379 : January 10, 2011  JOSE MARQUES and MAXILITE TECHNOLOGIES, INC., Petitioners,	v. FAR EAST BANK AND TRUST COMPANY, FAR EAST BANK INSURANCE BROKERS, INC., and MAKATI INSURANCE COMPANY, Respondents.	  G.R. No. 171419 : January 10, 2011   FAR EAST BANK AND TRUST COMPANY and MAKATI INSURANCE COMPANY, Petitioners, v. JOSE MARQUES and MAXILITE TECHNOLOGIES, INC., Respondents.

     

    SECOND DIVISION

    G.R. No. 171379 : January 10, 2011

    JOSE MARQUES and MAXILITE TECHNOLOGIES, INC., Petitioners, v. FAR EAST BANK AND TRUST COMPANY, FAR EAST BANK INSURANCE BROKERS, INC., and MAKATI INSURANCE COMPANY, Respondents.

    G.R. No. 171419 : January 10, 2011

    FAR EAST BANK AND TRUST COMPANY and MAKATI INSURANCE COMPANY, Petitioners, v. JOSE MARQUES and MAXILITE TECHNOLOGIES, INC., Respondents.

    D E C I S I O N

    CARPIO, J.:

    The Case

    These consolidated petitions for reviewcralaw1cralaw assail the 31 May 2005 Decision cralaw2cralaw and the 26 January 2006 Resolutioncralaw3cralaw of the Court of Appeals-Cebu City in CA-G.R. CV No. 62105. The Court of Appeals affirmed with modifications the 4 September 1998 Decisioncralaw4cralaw of the Regional Trial Court of Cebu City, Branch 58, in Civil Case No. CEB-18979.

    The Facts

    Maxilite Technologies, Inc. (Maxilite) is a domestic corporation engaged in the importation and trading of equipment for energy-efficiency systems. Jose N. Marques (Marques) is the President and controlling stockholder of Maxilite.

    Far East Bank and Trust Co. (FEBTC)cralaw5cralaw is a local bank which handled the financing and related requirements of Marques and Maxilite. Marques and Maxilite maintained accounts with FEBTC. Accordingly, FEBTC financed Maxilite's capital and operational requirements through loans secured with properties of Marques under the latter's name. Among Maxilite's and Marques' transactions with FEBTC were: chanrob1esvirtwallawlibrary

    a. A straight loan in the name of Jose N. Marques for Maxilite at the original principal amount of P 1 million. This is secured by real estate mortgage. From said original principal amount, the bank increased it by P 300, 000.00 about 26 October 1994 to enable the wiping out of Maxilite's Trust Receipts Account and simplify the remaining accounts into straight loan accounts.

    b. A straight loan in the name of Maxilite Technologies, Inc. for a principal amount of P 2 million. This is secured with a Real Estate Mortgage of Marques' residential property.

    c. Master Card transactions covering two (2) Master Card Accounts of Marques, and

    d. Local credit card transactions covering one credit card account of Marques.cralaw6cralawredlaw

    Far East Bank Insurance Brokers, Inc. (FEBIBI) is a local insurance brokerage corporation while Makati Insurance Company cralaw7cralaw is a local insurance company. Both companies are subsidiaries of FEBTC.cralaw8cralawredlaw

    On 17 June 1993, Maxilite and Marques entered into a trust receipt transaction with FEBTC, in the sum of US$80, 765.00, for the shipment of various high-technology equipment from the United States, cralaw9cralaw with the merchandise serving as collateral. The foregoing importation was covered by a trust receipt document signed by Marques on behalf of Maxilite, which pertinently reads: chanrob1esvirtwallawlibrary

    The undersigned (Marques) further agree(s) to keep said merchandise insured against fire to its full value, payable to the said bank, at the cost and expense of the undersigned, who hereby further agree(s) to pay all charges for storage on said merchandise or any or other expenses incurred thereon.

    x x xcralaw10cralawredlaw

    Sometime in August 1993, FEBIBI, upon the advice of FEBTC, facilitated the procurement and processing from Makati Insurance Company of four separate and independent fire insurance policies over the trust receipted merchandise: (1) Policy No. BR-F-1016333, issued on 15 September 1993, covering the period 12 August 1993 to 12 November 1993 in the amount of P 1, 000, 000.00;cralaw11cralaw (2) Policy No. BR-F-1016888, issued on 15 September 1993 covering the period 8 September 1993 to 8 December 1993 in the amount of P 605, 494.28;cralaw12cralaw (3) Policy No. BR-F-1016930, issued on 18 October 1993, covering the period 14 October 1993 to 12 January 1994 in the amount of P 527, 723.66;cralaw13cralaw and (4) Policy No. BR-F-1018392, issued on 14 December 1993, covering the period 1 December 1993 to 1 March 1994 in the amount of P 725, 000.00.cralaw14cralaw Maxilite paid the premiums for these policies through debit arrangement. FEBTC would debit Maxilite's account for the premium payments, as reflected in statements of accounts sent by FEBTC to Maxilite.

    On 19 August 1994, Insurance Policy No. 1024439, covering the period 24 June 1994 to 24 June 1995, was released to cover the trust receipted merchandise. The policy relevantly provides: chanrob1esvirtwallawlibrary

    2. This policy including any renewal thereof and/or any endorsement thereon is not in force until the premium has been fully paid to and duly receipted by the Company in the manner provided herein.

    Any supplementary agreement seeking to amend this condition prepared by agent, broker or Company official, shall be deemed invalid and of no effect.cralaw15cralawredlaw

    Finding that Maxilite failed to pay the insurance premium in the sum of P 8, 265.60 for Insurance Policy No. 1024439 covering the period 24 June 1994 to 24 June 1995, FEBIBI sent written reminders to FEBTC, dated 19 October 1994, cralaw16cralaw 24 January 1995, cralaw17cralaw and 6 March 1995, to debit Maxilite's account.cralaw18cralawredlaw

    On 24 and 26 October 1994, Maxilite fully settled its trust receipt account.

    On 9 March 1995, a fire gutted the Aboitiz Sea Transport Building along M.J. Cuenco Avenue, Cebu City, where Maxilite's office and warehouse were located. As a result, Maxilite suffered losses amounting to at least P 2.1 million, which Maxilite claimed against the fire insurance policy with Makati Insurance Company. Makati Insurance Company denied the fire loss claim on the ground of non-payment of premium. FEBTC and FEBIBI disclaimed any responsibility for the denial of the claim.

    Maxilite and Marques sued FEBTC, FEBIBI, and Makati Insurance Company. Maxilite prayed for (1) actual damages totaling P 2.3 million representing full insurance coverage and "business opportunity losses, " (2) moral damages, and (3) exemplary damages. cralaw19cralaw On the other hand, Marques sought payment of actual, moral and exemplary damages, attorney's fees, and litigation expenses. Maxilite and Marques also sought the issuance of a preliminary injunction or a temporary restraining to enjoin FEBTC from (1) imposing penalties on their obligations; (2) foreclosing the real estate mortage securing their straight loan accounts; and (3) initiating actions to collect their obligations.

    FEBTC, FEBIBI, and Makati Insurance Company countered that Maxilite and Marques have no cause of action against them and essentially denied the allegations in the complaint.

    The Ruling of the Trial Court

    In ruling in favor of Maxilite and Marques, the Regional Trial Court of Cebu City, Branch 58, explained: chanrob1esvirtwallawlibrary

    Considering the interest of the defendant FEBTC in the property insured, hence, its concern that the insurance policy therefor has to be effected and enforceable, and considering that the payment of the premium thereof was the procedure adopted by debiting the plaintiffs' account, the Court is of the view that the non-payment of the premium of the insurance policy in question was due to the fault or negligence of the defendant FEBTC. What could have happened to the interest of the defendant FEBTC in the insurance policy in question had the fire occurred prior to the full settlement and payment of plaintiff's Maxilite trust receipt account? Would defendant FEBTC have tossed the blame on the non-payment of premium to the plaintiffs?

    Although there were reminders by defendant FEBIBI of the non-payment of the premium, the same were made by said defendant through the defendant FEBTC and not to the plaintiffs directly. Despite said reminders, the first of which was made on October 19, 1994 when plaintiff Maxilite has sufficient fund in its trust receipt account, defendant FEBTC did not heed the same and more so did it not care to pay the premium after the plaintiff Maxilite fully and finally settled its trust receipt account with defendant FEBTC as the latter has already lost its interest in the insurance policy in question by virtue of said full payment. But despite the non-payment of the insurance premium, the defendant Makati Insurance did not cancel the policy in question nor informed plaintiffs of its cancellation if the insurance premium should not be paid. Just as defendant FEBIBI failed to notify directly the plaintiffs of the said non-payment. Considering the relationship of the three (3) defendants herein, as undeniably sister companies, the non-payment of the premium of the insurance policy in question should be imputable to their fault or negligence. Under the factual milieu in the case at bar, the Court finds it just and equitable to hold said defendants liable to pay all the consequent damages suffered by the plaintiffs and their liability is solidary (Art. 2194, Civil Code).cralaw20cralawredlaw

    The trial court disposed of the case as follows: chanrob1esvirtwallawlibrary

    WHEREFORE, premises considered, judgment is hereby rendered ordering the defendants to pay jointly and severally to the plaintiff Maxilite the sum of Two Million One Hundred Thousand Pesos ( P 2, 100, 000.00), Philippine Currency, representing the full coverage of Insurance Policy No. 1024439 (Exh. 'A'), as actual damages, plus interest of 12% per annum from filing of Complaint on July 11, 1996 until fully paid, to the plaintiff Marque[s] the sum of P 400, 000.00 as moral damages, to both plaintiffs the sum of P 500, 000.00 as exemplary damages, the sum of P 50, 000.00 as attorney's fees, the sum of P 23, 082.50, representing the filing fees, as litigation expenses, and to pay the costs.

    The counter-claims are hereby dismissed.

    The writ of preliminary injunction is hereby made permanent.

    SO ORDERED.cralaw21cralawredlaw

    The Ruling of the Court of Appeals

    The Court of Appeals affirmed the trial court's decision, with modifications, on the following grounds: chanrob1esvirtwallawlibrary

    First, the relations among defendants with each other are closely related and so intertwined. The said three defendants, FEBTC, FEBIBI and MICI, are sister companies. This was never denied by the defendants themselves.

    Second, the insurance coverage was the business of sister companies FEBIBI and Makati Insurance, not with FEBTC, which has been the bank of plaintiffs which handled the latter's financing and related transactions. Stated a bit differently, defendant FEBTC handled the financing and related requirements of plaintiffs; defendant FEBIBI on the other hand is an insurance brokerage company of defendant FEBTC, while Makati Insurance is the insurance (arm) company of both defendants FEBIBI and FEBTC.

    Third, defendant FEBTC caused FEBIBI to facilitate the insurance coverage of plaintiffs. FEBIBI then asked Makati Insurance to issue the subject policy. Makati Insurance delivered the policy to FEBIBI which it tasked with the collection of premium. FEBIBI in turn delivered the policy to FEBTC from where it sought the payment of the premiums.

    Fourth, it must be noted that the cover note and policy was supposedly issued and made effective on June 24, 1994, when the trust receipt account was still outstanding and the insured merchandise was still theoretically owned by the bank. Thus, for all intents and purposes, it was to the best interest and protection of the bank to see to it that the goods were properly covered by insurance.

    Fifth, the payment of premium has never been made an issue when the subject policy was still separated into three. Or even after the said consolidation into one policy (No. 1024439), still, payment of the premium has never become an issue.

    x x x

    For another, if We were to believe defendants' claim that the premium for the subject policy was not paid, then defendants should have cancelled the policy long before. But even up to the time the fire gutted plaintiffs' warehouse in March 1995, defendants acknowledged that the subject policy remained effective. x x x

    Furthermore, there was no notice of cancellation or any communication from defendants sent to plaintiffs that the policy shall be cancelled because of non-payment of premiums. Thus, the more reasonable and logical conclusion is that the subject policy was still fully in force because plaintiffs are still paying its premiums and defendants are collecting the same through debit account.cralaw22cralawredlaw

    The Court of Appeals disposed of the case as follows: chanrob1esvirtwallawlibrary

    UPON THE VIEW WE TAKE OF THIS CASE, judgment appealed from is hereby MODIFIED in such that: chanrob1esvirtwallawlibrary

    a. the interest shall be at the rate of six percent (6%) per annum to run from the time of demand on April 11, 1995, in accordance with Article 1589 of the Civil Code, until the finality of this decision; chanroblesvirtualawlibrary

    b. the moral damages of P 400, 000.00 is reduced to P 50, 000.00; chanroblesvirtualawlibrary

    c. the exemplary damages of P 500, 000.00 is reduced to P 50, 000.00; and

    d. the writ of preliminary injunction previously issued lifted and set aside.

    In all other respects, judgment appealed from is AFFIRMED. Without pronouncement as to costs.

    SO ORDERED.cralaw23cralawredlaw

    Hence, these petitions.

    The Issues

    In G.R. No. 171379, petitioners assail the Court of Appeals' reduction of (1) the interest rate from 12% to 6% per annum to be imposed on respondents' liabilities; and (2) the award of moral and exemplary damages. Petitioners also question the portion of the Court of Appeals' judgment allowing FEBTC to foreclose the real estate mortgage securing petitioners' loans and disallowing legal compensation for the parties' mutual obligations.

    In G.R. No. 171419, petitioners challenge the Court of Appeals' findings that (1) the premium for the subject insurance policy has in fact been paid; (2) FEBTC, FEBIBI and Makati Insurance Company are jointly and severally liable to pay respondents the full coverage of the subject insurance policy despite (a) their separate juridical personalities; (b) the absence of any fault or negligence on their part; and (c) respondents' failure to prove the extent of the alleged loss. Petitioners further impugn the award of damages and attorney's fees.

    The Court's Ruling

    The petition in G.R. No. 171319 lacks merit, whereas the petition in G.R. No. 171419 is partially meritorious.

    Essentially, Maxilite and Marques invoke estoppel in claiming against FEBTC, FEBIBI, and Makati Insurance Company the face value of the insurance policy. In their complaint, Maxilite and Marques alleged they were led to believe and they in fact believed that the settlement of Maxilite's trust receipt account included the payment of the insurance premium.cralaw24cralaw Maxilite and Marques faulted FEBTC "if it failed to transmit the premium payments on subject insurance coverage contrary to its represented standard operating procedure of solely handling the insurance coverage and past practice of debiting [Maxilite's] account."cralaw25cralawredlaw

    Article 1431 of the Civil Code defines estoppel as follows: chanrob1esvirtwallawlibrary

    Art. 1431. Through estoppel an admission or representation is rendered conclusive upon the person making it, and cannot be denied or disproved as against the person relying thereon.

    Meanwhile, Section 2(a), Rule 131 of the Rules of Court provides: chanrob1esvirtwallawlibrary

    SEC. 2. Conclusive presumptions. - The following are instances of conclusive presumptions: chanrob1esvirtwallawlibrary

    (a) Whenever a party has, by his own declaration, act, or omission, intentionally and deliberately led another to believe a particular thing is true, and to act upon such belief, he cannot, in any litigation arising out of such declaration, act or omission, be permitted to falsify it.

    In estoppel, a party creating an appearance of fact, which is false, is bound by that appearance as against another person who acted in good faith on it.cralaw26cralaw Estoppel is based on public policy, fair dealing, good faith and justice.cralaw27cralaw Its purpose is to forbid one to speak against his own act, representations, or commitments to the injury of one who reasonably relied thereon.cralaw28cralaw It springs from equity, and is designed to aid the law in the administration of justice where without its aid injustice might result.cralaw29cralawredlaw

    In Santiago Syjuco, Inc. v. Castro, cralaw30cralaw the Court stated that "estoppel may arise from silence as well as from words." 'Estoppel by silence' arises where a person, who by force of circumstances is obliged to another to speak, refrains from doing so and thereby induces the other to believe in the existence of a state of facts in reliance on which he acts to his prejudice.cralaw31cralaw Silence may support an estoppel whether the failure to speak is intentional or negligent.cralaw32cralawredlaw

    Both trial and appellate courts basically agree that FEBTC is estopped from claiming that the insurance premium has been unpaid. That FEBTC induced Maxilite and Marques to believe that the insurance premium has in fact been debited from Maxilite's account is grounded on the the following facts: (1) FEBTC represented and committed to handle Maxilite's financing and capital requirements, including the related transactions such as the insurance of the trust receipted merchandise; (2) prior to the subject Insurance Policy No. 1024439, the premiums for the three separate fire insurance policies had been paid through automatic debit arrangement; (3) FEBIBI sent FEBTC, not Maxilite nor Marques, written reminders dated 19 October 1994, 24 January 1995, and 6 March 1995 to debit Maxilite's account, establishing FEBTC's obligation to automatically debit Maxilite's account for the premium amount; (4) there was no written demand from FEBTC or Makati Insurance Company for Maxilite or Marques to pay the insurance premium; (5) the subject insurance policy was released to Maxilite on 19 August 1994; and (6) the subject insurance policy remained uncancelled despite the alleged non-payment of the premium, making it appear that the insurance policy remained in force and binding.

    Moreover, prior to the full settlement of the trust receipt account on 24 and 26 October 1994, FEBTC had insurable interest over the merchandise, and thus had greater reason to debit Maxilite's account. Further, as found by the trial court, and apparently undisputed by FEBTC, FEBIBI and Makati Insurance Company, Maxilite had sufficient funds at the time the first reminder, dated 19 October 1994, was sent by FEBIBI to FEBTC to debit Maxilite's account for the payment of the insurance premium. Since (1) FEBTC committed to debit Maxilite's account corresponding to the insurance premium; (2) FEBTC had insurable interest over the property prior to the settlement of the trust receipt account; and (3) Maxilite's bank account had sufficient funds to pay the insurance premium prior to the settlement of the trust receipt account, FEBTC should have debited Maxilite's account as what it had repeatedly done, as an established practice, with respect to the previous insurance policies. However, FEBTC failed to debit and instead disregarded the written reminder from FEBIBI to debit Maxilite's account. FEBTC's conduct clearly constitutes negligence in handling Maxilite's and Marques' accounts. Negligence is defined as "the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or the doing of something which a prudent man and reasonable man could not do." cralaw33cralawredlaw

    As a consequence of its negligence, FEBTC must be held liable for damages pursuant to Article 2176 of the Civil Code which states "whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done." Indisputably, had the insurance premium been paid, through the automatic debit arrangement with FEBTC, Maxilite's fire loss claim would have been approved. Hence, Maxilite suffered damage to the extent of the face value of the insurance policy or the sum of P 2.1 million.

    Contrary to Maxilite's and Marques' view, FEBTC is solely liable for the payment of the face value of the insurance policy and the monetary awards stated in the Court of Appeals' decision. Suffice it to state that FEBTC, FEBIBI, and Makati Insurance Company are independent and separate juridical entities, even if FEBIBI and Makati Insurance Company are subsidiaries of FEBTC. Absent any showing of its illegitimate or illegal functions, a subsidiary's separate existence shall be respected, and the liability of the parent corporation as well as the subsidiary shall be confined to those arising in their respective business.cralaw34cralaw Besides, the records are bereft of any evidence warranting the piercing of corporate veil in order to treat FEBTC, FEBIBI, and Makati Insurance Company as a single entity. Likewise, there is no evidence showing FEBIBI's and Makati Insurance Company's negligence as regards the non-payment of the insurance premium.

    The Court agrees with the Court of Appeals in reducing the interest rate from 12% to 6% as the obligation to pay does not arise from a loan or forbearance of money. In Eastern Shipping Lines, Inc. v. Court of Appeals, cralaw35cralaw the Court laid down the following guidelines for the application of the proper interest rates: chanrob1esvirtwallawlibrary

    I. When an obligation, regardless of its source, i.e., law, contracts, quasi-contracts, delicts or quasi-delicts is breached, the contravenor can be held liable for damages. The provisions under Title XVIII on "Damages" of the Civil Code govern in determining the measure of recoverable damages.

    II. With regard particularly to an award of interest in the concept of actual and compensatory damages, the rate of interest, as well as the accrual thereof, is imposed, as follows: chanrob1esvirtwallawlibrary

    1. When the obligation is breached, and it consists in the payment of a sum of money, i.e., a loan or forbearance of money, the interest due should be that which may have been stipulated in writing. Furthermore, the interest due shall itself earn legal interest from the time it is judicially demanded. In the absence of stipulation, the rate of interest shall be 12% per annum to be computed from default, i. e., from judicial or extrajudicial demand under and subject to the provisions of Article 1169 of the Civil Code.

    2. When an obligation, not constituting a loan or forbearance of money, is breached, an interest on the amount of damages awarded may be imposed at the discretion of the court at the rate of 6% per annum. No interest, however, shall be adjudged on unliquidated claims or damages except when or until the demand can be established with reasonable certainty. Accordingly, where the demand is established with reasonable certainty, the interest shall begin to run from the time the claim is made judicially or extrajudicially (Art. 1169, Civil Code) but when such certainty cannot be so reasonably established at the time the demand is made, the interest shall begin to run only from the date the judgment of the court is made (at which time the quantification of damages may be deemed to have been reasonably ascertained). The actual base for the computation of legal interest shall, in any case, be . . . the amount finally adjudged.

    3. When the judgment of the court awarding a sum of money becomes final and executory, the rate of legal interest, whether the case falls under paragraph 1 or paragraph 2, above, shall be 12% per annum from such finality until its satisfaction, this interim period being deemed to be by then an equivalent to forbearance of credit. (Emphasis supplied)

    With respect to Maxilite's and Marques' invocation of legal compensation, we find the same devoid of merit. Aside from their bare allegations, there is no clear and convincing evidence that legal compensation exists in this case. In other words, Maxilite and Marques failed to establish the essential elements of legal compensation. Therefore, Maxilite's and Marques' claim of legal compensation must fail.

    WHEREFORE , we AFFIRM with MODIFICATION the 31 May 2005 Decision and the 26 January 2006 Resolution of the Court of Appeals-Cebu City in CA-G.R. CV No. 62105. Only Far East Bank and Trust Company, and not Far East Bank Insurance Brokers, Inc. or Makati Insurance Company, is ORDERED to PAY the face value of the subject insurance policy and the monetary awards stated in the Court of Appeals' decision.

    SO ORDERED .

    ANTONIO T. CARPIO
    Associate Justice

    WE CONCUR: chanrob1esvirtwallawlibrary

    BRION,*cralaw PERALTA, ABAD, and MENDOZA, JJ.



    cralaw Endnotes:

    cralaw*cralaw Designated additional member per Raffle dated 9 June 2010.

    cralaw1cralaw Under Rule 45 of the Rules of Court.

    cralaw2cralaw Rollo (G.R. No. 171419), pp. 94-113. Penned by Associate Justice Vicente L. Yap, with Associate Justices Isaias P. Dicdican and Enrico A. Lanzanas concurring.

    cralaw3cralaw Id. at 114-118.

    cralaw4cralaw Id. at 631-664. Penned by Judge Jose P. Soberano, Jr.

    cralaw5cralaw FEBTC has been merged with Bank of the Philippine Islands (BPI), which is the surviving corporation.

    cralaw6cralaw Rollo (G.R. No. 171379), p. 157.

    cralaw7cralaw Now known as BPI/MS Insurance Corporation (BPI/MS-IC), id. at 198.

    cralaw8cralaw Rollo (G.R. No. 171419), p. 330; TSN, 9 February 1998, p. 20.

    cralaw9cralaw Id. at 251.

    cralaw10cralaw Id. at 225; TSN, 31 July 1997, p. 8 (Benjamin Torno).

    cralaw11cralaw Id. at 306.

    cralaw12cralaw Id. at 309.

    cralaw13cralaw Id. at 310.

    cralaw14cralaw Id. at 308.

    cralaw15cralaw Id. at 414.

    cralaw16cralaw Id. at 403.

    cralaw17cralaw Id. at 404.

    cralaw18cralaw Id. at 405.

    cralaw19cralaw Id. at 616-617.

    cralaw20cralaw Id. at 661-662.

    cralaw21cralaw Id. at 663-664.

    cralaw22cralaw Id. at 107-109.

    cralaw23cralaw Id. at 112-113.

    cralaw24cralaw Id. at 605.

    cralaw25cralaw Id. at 608.

    cralaw26cralaw Aquino, Ramon C., The Civil Code of the Philippines, Vol. 2, 1990 Edition, p. 508, citing Strong v. Gutierrez Repide, 6 Phil. 680, 685.

    cralaw27cralaw Id. at 509.

    cralaw28cralaw Id.

    cralaw29cralaw Id., citing 28 Am Jur 2nd 28; PNB v. Perez, 183 Phil. 54 (1979); Lazo v. Republic Surety & Ins. Co., Inc., 142 Phil. 158 (1970).

    cralaw30cralaw G.R. No. 70403, 7 July 1989, 175 SCRA 171, 192, citing 31 C.J.S., pp. 490-494.

    cralaw31cralaw Id.

    cralaw32cralaw Id.

    cralaw33cralaw Bank of the Philippine Islands v. Suaez , G.R. No. 167750, 15 March 2010, 615 SCRA 291, 298.

    cralaw34cralaw Nisce v. Equitable PCI Bank, Inc. , G.R. No. 167434, 19 February 2007, 516 SCRA 231, 258.

    cralaw35cralaw G.R. No. 97412, 12 July 1994, 234 SCRA 78, 95-97.

    G.R. No. 171379 : January 10, 2011  JOSE MARQUES and MAXILITE TECHNOLOGIES, INC., Petitioners,	v. FAR EAST BANK AND TRUST COMPANY, FAR EAST BANK INSURANCE BROKERS, INC., and MAKATI INSURANCE COMPANY, Respondents.	  G.R. No. 171419 : January 10, 2011   FAR EAST BANK AND TRUST COMPANY and MAKATI INSURANCE COMPANY, Petitioners, v. JOSE MARQUES and MAXILITE TECHNOLOGIES, INC., Respondents.


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