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SUPREME COURT DECISIONS
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EN BANC
G.R. No. 44451 December 16, 1938
VICENTE L. LEGARDA, Plaintiff-Appellant, vs. LA PREVISORA FILIPINA, A Mutual building and Loan Association, Defendant-Appellant.
Harvey & O'Brien for plaintiff-appellant.
E.P. Revilla for defendant-appellant.
LAUREL, J.:
EN BANCchanrobles virtual law library
In his amended complaint filed July 24, 1934, in the Court of First Instance of Manila, the plaintiff, the plaintiff claims from the defendant building and loan association various amounts under divers causes of action: ( a) P48,300 and interests thereon from the date of the filing of the original complaint, for unwarranted cancellation of the contract, Exhibit C, which is hereinbelow inserted and for his wrongful discharge as manager of the defendant corporation; ( b) P3,250 and interests, for the suppression, as of March 1, 1932, of the position of consulting architect theretofore held by him; ( c) P1,760 and interests, for his discharge, as of March 1, 1932, as president of the appraisal committee for the year 1932; ( d) P230.41 and interests, for inspection work undertaken by him, which amount, it is alleged, was being retained by the defendant corporation. In addition, and under the fifth cause, plaintiff seeks the immediate delivery of thirty shares of stock of the par value of P200 each, or the payment of their retirement value in the aggregate sum of P6,000, with the corresponding interests.chanroblesvirtualawlibrary chanrobles virtual law library
The defendant building and loan association, on February 27, 1935, filed its answer and also a counterclaim and a cross-complaint. In the answer, as amended on February 27, 1935, a general denial is set up. Specific denial is made as to the existence of an agreement to employ plaintiff as defendant's consulting architect and president of its assessment committee for the year 1932. As special defenses, it is averred ( a) that the officer of the defendant corporation who executed the contract, Exhibit C, did not have the authority to so act for the association; ( b) that the contract was fraudulent; ( c) that the contract was illegal and void; ( d) that the plaintiff was guilty of breach of trust; and ( e) that the shares of stock referred to under the fifth cause of action were deposited by the plaintiff to secure faithful performance of plaintiff's obligations towards the corporation, said shares being to answer for damages occasioned to the defendant. By way of counterclaim, the defendant alleges that plaintiff received under a void contract, Exhibit C, P14, 100 and that it also suffered P10,000 damages and asks for the refund and payment of both amounts.
On the issues thus joined, trial was had, and on June 29, 1935, the lower court rendered its decision the dispositive part of which is as follows:chanrobles virtual law library
Por las consideraciones arriba expuestas, se dicta sentencia:chanrobles virtual law library
(A) sobreseyendo el primero (1.�), segundo (2.�) y tercer (3.�) motivos de accion alegados por el demandante;chanrobles virtual law library
(B) condenando a la demandada a reembolsar al demandante la suma de doscientos treinta pesos con cuarenta y un centimos (P230.41) injustamente deducida por la demandada del importe de las acciones liquieadadas y retiradas por el demandante, con sus intereses legales desde la presentacion de esta demanda hasta su completo pago: chanrobles virtual law library
(C) Condenando asimismo a la demandada a devolver al demandante las treinta (30) acciones libradas a favor de este segun el certificado No. 92, o a pagarle su valor total de seis mil (P6,000) pesos, con los intereses convenidos a razon de diez (10%) por ciento al año desde al 30 de septiembre de 1934 hasta su completo pago, en ambos casos; ychanrobles virtual law library
(D) Sobreseyendo la reconvencion formulada por la demandada.chanroblesvirtualawlibrary chanrobles virtual law library
Sin expreso pronunciamiento de costas.chanroblesvirtualawlibrary chanrobles virtual law library
Exceptions and motions for new trial were filed by both plaintiff and defendant and the case finally elevated to this court by bill of exceptions.chanroblesvirtualawlibrary chanrobles virtual law library
Plaintiff-appellant submits the following assignment of errors:chanrobles virtual law library
I. The trial court erred in holding that the contract Exhibit C was obtained fraudulently through confabulation and consipiracy and, therefore, illegal ab initio.chanroblesvirtualawlibrary chanrobles virtual law library
II. The trial court erred in holding that the Board of Directors of the defendant corporation had no power to authorize the execution of the said contract, Exhibit C, for the reason that the stipulated period of duration of the employment was for a longer time than the tenure of office of the members of said board.chanroblesvirtualawlibrary chanrobles virtual law library
III. The trial court erred in holding that the contract Exhibit C had not been approved by the Board Directors of the defendant corporation, and that the minutes, No. 135 of the Board of Directors (Exhibit C-2), approved in its session held on December 23, 1932, had been manipulated by the insertion in the last portion thereof of the clause approving the said contract Exhibit C.chanroblesvirtualawlibrary chanrobles virtual law library
IV. The trial court erred in holding that plaintiff was not employed by defendant corporation as Consulting Architect under contract for a period of one year at an annual salary of P3,900.chanroblesvirtualawlibrary chanrobles virtual law library
V. The trial court erred in holding that plaintiff was not employed by defendant as President of the appraisement Committee under contract for a period of one year at an annual salary of P2,080.chanroblesvirtualawlibrary chanrobles virtual law library
VI. The trial court erred in dismissing the first, second and third causes of action in plaintiff's complaint without express finding as to costs, and in not awarding judgment in favor of plaintiff and against defendant ( a) on the first cause of action for the sum of P48,300 with legal interest thereon from the date of filing the original complaint; ( b) on the second cause of action for the sum of P3,250, with legal interest thereon from the date of filing the original complaint; ( c) on the third cause of action for the sum of P1,760, with legal thereon from the date of filing the original complaint, and ( d) for the costs of the action.chanroblesvirtualawlibrary chanrobles virtual law library
VII. The trial court erred in denying plaintiff's motion for a new trial.chanroblesvirtualawlibrary chanrobles virtual law library
Defendant-appellant, on the other hand, presents the following assignment of errors:chanrobles virtual law library
I. The lower court erred in not declaring that defendant is entitled to recover from plaintiff the sum of P14,100 received by said plaintiff as salary under the void contract, Exhibit C.chanroblesvirtualawlibrary chanrobles virtual law library
II. The lower court erred in denying defendant the right to prove its counterclaim for damages in the sum of P10,000.chanroblesvirtualawlibrary chanrobles virtual law library
III. The lower court erred in not allowing defendant to amend its counterclaim.chanroblesvirtualawlibrary chanrobles virtual law library
IV. The lower court erred in denying defendant's motion for a new trial.chanroblesvirtualawlibrary chanrobles virtual law library
The appeal of the plaintiff is directed against the dismissal by the lower court of the first, second and third causes of action of the complaint. The first three errors assigned in the brief of the appellant have reference to the execution and validity of the contract, Exhibit C. It is claimed that this contract was entered into by and between the parties concerned, pursuant to articles 34 and 42 f the by-laws of the corporation and the resolution (Exhibit C-1) adopted by the board of directors on December 19, 1929. Article 34 of the by-laws of the corporation as amended, provides as follows:chanrobles virtual law library
Una vez que hayan tomado posesion de sus coragos, los Directores elegiran de entre ellos los que hayan de desmpeñar los cargos de la Directiva; un Presidente, un Vice Presidente, un Tesorero, un Vice Tesorero y tres (30) Vocales. Los Directores nombraran al Secretario de la Sociedad que podra ser bien un acciionista no-Durector o un Director-Vocal. Tambien nombraran a un Gerente, un Vice Gerente, un Abogado y Consultor Legal y podran, si lo creen conveniente, contratar sus servicios y los de los que des empeñen cargos tecnicos en la Sociedad que sean convenientes y necesarios para la buena marcha de los negocios de la misma.chanroblesvirtualawlibrary chanrobles virtual law library
Article 42 of the by-laws, as amended, also provides that the manager shall be appointed by the board of directors and he may either un accionista no Director o un directors-Vocal. Resolution (Acta No. 134, Exhibit C-1) alleged to have been adopted and approved by a majority of the board of Directors on December 19, 1929, pursuant to article 34 of the by-laws, is as follows:chanrobles virtual law library
Se resuelve por esta Junta autorizar, como por la presente se autoriza al Presidente actuante o interino Don Miguel Romuladez y al Gerente de esta Corporacion Don Vicente L. Legarda, para que en nombre de la Sociedad y de la Junta Directiva de la misma retengan y contraten a todos aquellos oficiales y actuales empleados de esta Sociedad que por su integridad, honradez y pericia en el cargo que desempeñan en "La Previsora Filipina' sus servicios son convenientes y necesarios para el buen funcionamiento de la administracion de los negocios de la misma. Se resuelve, ademas, que todos los contratos una vez hechos se dara cuenta a la Directiva para su conocimiento y efectos consiguientes."chanrobles virtual law library
The directors present at the approval of the above resolution were the plaintiff Legarda, his wife Clara Tambunting de Legarda, Miguel Romualdez, Pedro Mata, Ariston de Guzman and Gonzalo Go Qiolay.chanroblesvirtualawlibrary chanrobles virtual law library
It is pursuant to this resolution that the contract, Exhibit C, was executed on December 23, 1929, by and between the plaintiff Legarda and defendant corporation, the latter represented by M. Romuladez, acting president of the corporation. The contract, Exhibit C, is of the following tenor:chanrobles virtual law library
Sepan todos los que el presente vieren y Leyeren: Quechanrobles virtual law library
En esta Ciudad de Manila, Islas Filipinas, hoy, a 23 de diciembre de 1929, "La Previsora Filipina", Sociedad Mutua de Construccion Prestamos, una corporacion debidamente organizada y registrada de conformidad con las leyes vigentes en las Islas Filipinas y representada en este acto por su Presidente interino Don Miguel Romualdez, de acuerdo con la resolucion de la Junta Directiva de dicha Sociedad aprobada en su sesion del dia 19 de diciembre de 1929, de una parte, y Don Vicente L. Legarda, Arquitecto, mayor de edad y vecino de esta Ciudad de Manila, Islas Filipinas, de otra parte,
HACEN CONSTAR:chanrobles virtual law library
1. Que Don Vicente L. Legarda (actual gerente de La Previsora Filipina') sera el gerente de esta corporacion, "La Previsora Filipina", Sociedad Mutua de Construccion y Prestamos, por el periodo de seis (6) años a contar desde el dia 1.� de enero 1930, y automaticamente prorrogable por otro periodo de tiempo de igual duracion siempre que noventa (90) dias antes de llegar el termino de duracion de este contrato npresentara objecion a ello ninguna de las partes aqui contratantes, y con plenos y amplios poderes y autoridad tal como se especifica en los estatutos vigentes de esta Sociedad, "La Previsora Filipina";chanrobles virtual law library
2. Que "La Previsora Filipina", Sociedad Mutua de Construccion y Prestamos, por y en consideracion a los servicios que le ha de prestar dicho Gerente Don Vicente L. Legarda, pagara a este al final de cada mes en curso, esto es, por meses vencidos, y en moneda filipina corriente, una suma o cantidad mensual equivalente al diez por ciento (10%) del medio por ciento (0.50%) del Capital Colocado de dicha Sociedad computado hasta el ultimo dia del año inmediato anterior: Entendiendose, sin embargo, Que para el año 1930 dicho haber o sueldo mensual sera no menor de trescientos treinta y tres pesos con treinta y tres centimos (333.33) y Entendiendose, ademas, Que despues del primer año de la vigencia de este contrato, o sea, despues del dia 31 de diciembre de 1930, dicho haber o sueldo mensual se ira aumentando el dia premero de cada año a una suma o cantidad no menor del diez por ciento (10%) del medio por ciento (0.50%) del capital colocado arriba referido;chanrobles virtual law library
3. Que dicho Don Vicente L. Legarda, como Gerente de la sociedad, hara todo cuanto este de su parte para fomentar y promover el adelanto y mejoramiento de los intereses de la referida sociedad, "La Previsora Filipina", desempeñando sus deberes y obligaciones de una manera leal y eficiente, tal como lo ha estado desempeñando hasta el presente;chanrobles virtual law library
4. Que dicho Gerente Don Vicente L. Legarda procurara por todos los medios a su alcance y disposicion atraer capital para la Sociedad sujeto a las limitaciones que se provee en los estatutos vigentes de esta Sociedad y por las leyes que regin sobre la materia; y chanrobles virtual law library
5. Que, sin motivo justificado, este contrato no podra ser modificado ni anulado sino por mutuo convenio y consentimiento de ambas partes, Entendiendose, sin embargo, Que si la sociedad 'La Previsora Filipina' quisiere dar por terminado este contrato antes de llegar el termino de duracion del mismo, entonces 'La Previsora Filipina' pagara al Gerente Don Vicente L. Legarda la suma o cantidad (en moneda filipina) que equivalga o pudiera equivaler al tiempo no expirado del presente contrato tomando por base al ultimo haber o sueldo mensual que hubiere percibido dicho don Vicente L. Legarda. Entendiendose, ademas, Que para el caso de que dicho Don Vicente L. Legarda quisiese dar por rescindido o cancelado este contrato antes de haber llegado el termino de duracion del mismo, notificara al Presidente de 'La Previsora Filipina' por escrito y con no menos de noventa (90) dias de anticipacion a la fecha en que deseare cancelar este contrato.chanroblesvirtualawlibrary chanrobles virtual law library
Y para que conste y surta los efectos consiguientes firmamos el presente hoy, a 23 de diciembre de 1929, en Manila, Islas Filipinas.
La Previsora Filipina Sociedad Mutua de Construccion y Prestamos Por: (Fdo.) M. ROMUALDES MIGUEL ROMUALDEZ (Fdo.) V.L. Legarda Vicente Legarda |