Article 1174 NATIONAL POWER CORPORATION vs. THE COURT OF APPEALS
G.R. No. 96410 July 3, 1992 NOCON, J.: FACTS: In the ealy !on"n# hou$ o% O&to'e 2(, 19(), at the he"#ht o% ty*hoon +a-"n#+, a !a$$"e %loo- &oee- the to/n$ nea An#at a!, *at"&ulaly the to/n o% Noa#aay, &au$"n# $eeal -eath$ anthe lo$$ an- -e$tu&t"on o% hou$e$, %a!$, *lant$, /o"n# an"!al$ an- othe *o*et"e$ o% the *eo*le e$"-"n# nea the An#at R"e. "ate e$*on-ent$ 'la!e- the $u--en u$h o% /ate to the e&le$$ an"!*u-ent o*en"n# o% all the thee 35 %loo-#ate$ o% the An#at a! $*"ll/ay, /"thout *"o /an"n# to the *eo*le l""n# nea o /"th"n the "&"n"ty "&"n"ty o% the -a!. In "e/ o% the$e, an a&t"on %o -a!a#e$ /a$ %"le%"le- 'y e$*on-ent$. The t"al &out ule- "n %ao o% the latte. "e/"$e the Cout o% A**eal$ a%%"!e- /"th $a"-e&"$"on. -e&"$"on. 7en&e, 7en&e, a *et"t"on *et"t"on %o e"e/ on &et"oa" &et"oa" /a$ "n$t"tute"n$t"tute- 'y the Nat"onal Nat"onal o/e Co*oat"on Co*oat"on NC5 an- 8ena!"n Chae, lant Su*e"nten-ent o% NC. et"t"one$ -en"e- *"ate e$*on-ent$ alle#at"on$ an-, 'y /ay o% -e%en$e, &onten-e- that they hae !a"nta"ne- the /ate "n the An#at a! at a $a%e leel an- that the o*en"n# o% the $*"ll/ay$ /a$ -one #a-ually an- a%te all *e&aut"onay !ea$ue$ ha- 'een taen. et"t"one NC %uthe &onten-e- that "t ha- al/ay$ e;e&"$e- the -"l"#en&e o% a #oo- %athe "n the $ele&t"on o% "t$ o%%"&"al$ an- e!*loyee$ an- "n the" $u*e"$"on. It al$o &la"!e- that /"tten /an"n#$ /ee eal"e $ent to the to/n$ &on&ene-, an- that thee /a$ no -"e&t &au$al elat"on$h"* 'et/een the alle#e- -a!a#e$ $u%%ee- 'y the e$*on-ent$ anthe a&t$ an- o!"$$"on$ att"'ute- to the %o!e. That "t /a$ the e$*on-ent$ /ho a$$u!e- the "$ o% e$"-"n# nea the An#at R"e, an- een a$$u!"n# that e$*on-ent$ $u%%ee- -a!a#e$, the &au$e /a$ -ue to a %otu"tou$ eent an- $u&h -a!a#e$ ae o% the natue an- &haa&te o% -a!nu! a'$
: ?hethe *et"t"one$ &an e$&a*e &""l l"a'"l"ty 'y "no"n# %o&e !aeue a$ the *o;"!ate &au$e o% the lo$$ an- -a!a#e. 7>: No. et"t"one$ &annot e$&a*e l"a'"l"ty l"a'"l"ty 'e&au$e the" ne#l"#en&e "$ the *o;"!ate &au$e o% the lo$$ an- -a!a#e. A&t A&t o% Go- o %o&e !aeue, !aeue, 'y -e%"n"t" -e%"n"t"on, on, ae e;tao-"na e;tao-"nay y eent$ not %oe$eea'le %oe$eea'le o ao"-a'le, eent$ that &oul- not 'e %oe$een, o /h"&h, thou#h %oe$een, ae "ne"ta'le. It "$ thee%oe not enou#h that the eent $houl- not hae 'een %oe$een o ant"&"*ate-, a$ "$ &o!!only 'el"ee-, 'ut "t !u$t 'e one "!*o$$"'le to %oe$ee o to ao"-. ( A$ a #eneal ule, no *e$on $hall 'e e$*on$"'le %o tho$e eent$ /h"&h &oul- not 'e %oe$een o /h"&h thou#h %oe$een, /ee "ne"ta'le. 7o/ee 7o/ee, , the *"n&" *"n&"*le *le e!'o-"ee!'o-"e- "n the a&t o% Go- -o&t"ne -o&t"ne $t"&t $t"&tly ly e
Al$o, -e$*"te o% the announ&e!ent$ o% the ne/$*a*e o% the e;*e&te- o&&uen&e o% a *o/e%ul ty*hoon &o-e@na!e- +a-"n#+, the /ate leel "n the -a! /a$ !a"nta"ne- at "t$ !a;"!u! %o! O&to'e 21, unt"l !"-n"#ht o% O&to'e 26, 19(). It ha$ 'een hel- "n $eeal &a$e$ that /hen the ne#l"#en&e o% a *e$on &on&u$ /"th an a&t o% Go*o-u&"n# a lo$$, $u&h *e$on "$ not e;e!*t %o! l"a'"l"ty 'y $ho/"n# that the "!!e-"ate &au$e o% the -a!a#e /a$ the a&t o% Go-. To 'e e;e!*t he !u$t 'e %ee %o! any *e"ou$ ne#l"#en&e o !"$&on-u&t 'y /h"&h the lo$$ o -a!a#e !ay hae 'een o&&a$"one-. ?7>R>FOR>, %"n-"n# no ee$"'le eo "n the e&"$"on a**eale- %o!, the $a!e "$ hee'y a%%"!e- "n toto, /"th &o$t a#a"n$t *et"t"one. Globe Teleco vs. P!ili""i#e Co$#ic%tio#s S%tellite Cor".
G.R. No.14(324, Au#u$t 2, 20045 FACTS: Glo'e ha- 'een en#a#e- "n the &oo-"nat"on o% the *o"$"on o% a"ou$ &o!!un"&at"on %a&"l"t"e$ %o the !"l"tay 'a$e$ o% the =S "n Cla A" 8a$e an- Su'"& Naal 8a$e. The $a"- &o!!un"&at"on %a&"l"t"e$ /ee "n$talle- an- &on%"#ue- %o the e;&lu$"e u$e o% the =S e%en$e Co!!un"&at"on$ A#en&y =SCA5, an- %o $e&u"ty ea$on$, /ee o*eate- only 'y "t$ *e$onnel o tho$e o% A!e"&an &o!*an"e$ &onta&te- 'y "t to o*eate $a"- %a&"l"t"e$. The =SCA &onta&te- /"th $a"- A!e"&an &o!*an"e$, an- the latte, "n tun, &onta&te- /"th Glo'e %o the u$e o% the &o!!un"&at"on %a&"l"t"e$. Glo'e, on the othe han-, &onta&te- /"th lo&al $e"&e *o"-e$ $u&h a$ the h"l"**"ne Co!!un"&at"on$ Satell"te Co*oat"on h"l&o!$at5 %o the *o"$"on o% the &o!!un"&at"on %a&"l"t"e$. On 0( ay 1991, h"l&o!$at an- Glo'e entee- "nto an A#ee!ent /hee'y h"l&o!$at o'l"#ate- "t$el% to e$ta'l"$h, o*eate an- *o"-e an I8S Stan-a- 8 eath $tat"on eath $tat"on5 /"th"n Cu'" o"nt %o the e;&lu$"e u$e o% the =SCA. The te! o% the &onta&t /a$ %o yea$. In tun, Glo'e *o!"$e- to *ay h"l&o!$at !onthly ental$ %o ea&h lea$e- &"&u"t "nole-. 8oth *at"e$ ne/ that the "l"tay 8a$e$ A#ee!ent 'et/een the Re*u'l"& o% the h"l"**"ne$ an- the =S /a$ to e;*"e "n 1991. On Au#u$t 6, 1992, Glo'e not"%"e- h"l&o!$at o% "t$ "ntent"on to -"$&ont"nue the u$e o% the eath $tat"on e%%e&t"e Noe!'e ), 1992 "n "e/ o% the te!"nat"on o% the R@=S "l"tay 8a$e$ A#ee!ent. A%te the =S !"l"tay %o&e$ le%t Su'"& Naal 8a$e, h"l&o!$at $ent Glo'e a lette -ate- Noe!'e 24, 1993 -e!an-"n# *ay!ent o% "t$ out$tan-"n# o'l"#at"on$ un-e the A#ee!ent a!ount"n# to =SD4,910,136.00 *lu$ "ntee$t an- attoneyE$ %ee$. 7o/ee, Glo'e e%u$e- to hee- h"l&o!$atE$ -e!an-. ISS=>S: 1. ?hethe the te!"nat"on o% the R@=S "l"tay 8a$e$ A#ee!ent &on$t"tute %o&e !aeue /h"&h /oul- e;e!*t Glo'e %o! &o!*ly"n# /"th "t$ o'l"#at"on to *ay ental$ un-e "t$ A#ee!ent /"th h"l&o!$at 2. ?hethe Glo'e "$ l"a'le to *ay ental$ un-e the A#ee!ent %o the !onth o% e&e!'e 1992 an3. ?hethe h"l&o!$at "$ ent"tle- to attoneyE$ %ee$ an- e;e!*lay -a!a#e$. 7>: F"$t I$$ue: Be$. At"&le 11(4, /h"&h e;e!*t$ an o'l"#o %o! l"a'"l"ty on a&&ount o% %otu"tou$ eent$ o %o&e !aeue, e%e$ not only to eent$ that ae un%oe$eea'le, 'ut al$o to tho$e /h"&h ae %oe$eea'le, 'ut "ne"ta'le. h"l&o!$at an- Glo'e a#ee- "n Se&t"on ) o% the A#ee!ent that the %ollo/"n# eent$ $hall 'e -ee!e- eent$ &on$t"tut"n# %o&e !aeue: *at"&ulaly: 1. any la/, o-e, e#ulat"on, -"e&t"on o e
The a/a- o% attoneyE$ %ee$ "$ the e;&e*t"on athe than the ule, an- !u$t 'e $u**ote- 'y %a&tual, le#al an- e;e!*lay -a!a#e$ !ay 'e a/a-e- "n &a$e$ "nol"n# &onta&t$ o ARC7 2), 2013 H 8IA RO&ERTO
C.
SICA'
%#(
AGENCIA
(e
R.C.
SICA')
INC.
vs.
SPOUSES
*ORGE
G.R. No. 1961(, Au#u$t ), 200( FACTS: On -"%%eent -ate$, ulu Jo#e *a/ne- $eeal *"e&e$ o% e/ely /"th A#en&"a -e R. C. S"&a! lo&ate- "n aaa a$ /ell a$ AF. The RTC en-ee- "t$ e&"$"on -"$!"$$"n# e$*on-ent$E &o!*la"nt a$ /ell a$ *et"t"one$E &ounte&la"!. Re$*on-ent$ a**eale- the RTC e&"$"on to the CA /h"&h ee$e- the RTC, o-e"n# the a**ellee$ to *ay a**ellant$ the a&tual alue o% the lo$t e/ely an- AF. et"t"one$ R -en"e-, hen&e the "n$tant *et"t"on %o e"e/ on Cet"oa". ISS=>: ae the *et"t"one$ l"a'le %o the lo$$ o% the *a/ne- at"&le$ "n the" *o$$e$$"onK et"t"one$ "n$"$t that they ae not l"a'le $"n&e o''ey "$ a %otu"tou$ eent an- they ae not ne#l"#ent at all.5 7>: The e&"$"on o% the CA "$ AFFIR>. B>S At"&le 11(4 o% the C""l Co-e *o"-e$: At. 11(4. >;&e*t "n &a$e$ e;*e$$ly $*e&"%"e- 'y the la/, o /hen "t "$ othe/"$e -e&lae- 'y $t"*ulat"on, o /hen the natue o% the o'l"#at"on e
S"&a! ha- te$t"%"e- that thee /a$ a $e&u"ty #ua- "n the" *a/n$ho* at the t"!e o% the o''ey. 7e l"e/"$e te$t"%"e- that /hen he $tate- the *a/n$ho* 'u$"ne$$ "n 19)3, he thou#ht o% o*en"n# a ault /"th the nea'y 'an %o the *u*o$e o% $a%eee*"n# the alua'le$ 'ut /a$ -"$&oua#e- 'y the Cental 8an $"n&e *a/ne- at"&le$ $houl- only 'e $toe- "n a ault "n$"-e the *a/n$ho*. The ey !ea$ue$ /h"&h *et"t"one$ ha- alle#e-ly a-o*te- $ho/ that to the! the *o$$"'"l"ty o% o''ey /a$ not only %oe$eea'le, 'ut a&tually %oe$een an- ant"&"*ate-. S"&a!E$ te$t"!ony, "n e%%e&t, &onta-"&t$ *et"t"one$E -e%en$e o% %otu"tou$ eent. oeoe, *et"t"one$ %a"le- to $ho/ that they /ee %ee %o! any ne#l"#en&e 'y /h"&h the lo$$ o% the *a/ne- e/ely !ay hae 'een o&&a$"one-. Ro''ey *e $e, u$t l"e &ana**"n#, "$ not a %otu"tou$ eent. It -oe$ not %oe&lo$e the *o$$"'"l"ty o% ne#l"#en&e on the *at o% hee"n *et"t"one$. et"t"one$ !eely *e$ente- the *ol"&e e*ot o% the aaa"-ently, no $u%%"&"ent *e&aut"on an"#"lan&e /ee a-o*te- 'y *et"t"one$ to *ote&t the *a/n$ho* %o! unla/%ul "ntu$"on. Thee /a$ n o &lea $ho/"n# that thee /a$ any $e&u"ty #ua- at all. O "% thee /a$ one, that he ha- $u%%"&"ent ta"n"n# "n $e&u"n# a *a/n$ho*. Futhe, thee "$ no $ho/"n# that the alle#e- $e&u"ty #ua- e;e&"$e- all that /a$ ne&e$$ay to *eent any unto/a- "n&"-ent o to en$ue that no $u$*"&"ou$ "n-""-ual$ /ee allo/e- to ente the *e!"$e$. In %a&t, "t "$ een -ou't%ul that thee /a$ a $e&u"ty #ua-, $"n&e "t "$ S:
?e, ho/ee, -o not a#ee /"th the CA /hen "t %oun- *et"t"one$ ne#l"#ent %o not ta"n# $te*$ to "n$ue the!$ele$ a#a"n$t lo$$ o% the *a/ne- e/el"e$. =n-e Se&t"on 1( o% Cental 8an C"&ula No. 3(4, Rule$ an- Re#ulat"on$ %o a/n$ho*$, /h"&h too e%%e&t on July 13, 19(3, an- /h"&h /a$ "$$ue- *u$uant to e$"-ent"al e&ee No. 114, a/n$ho* Re#ulat"on A&t, "t "$ *o"-e- that *a/n$ *le-#e- !u$t 'e "n$ue-, to /"t: Se&. 1(. In$uan&e o% O%%"&e 8u"l-"n# an- a/n$@ The *la&e o% 'u$"ne$$ o% a *a/n$ho* an- the *a/n$ *le-#e- to "t !u$t 'e "n$ue- a#a"n$t %"e an- a#a"n$t 'u#lay a$ /ell a$ %o the latte$"&5, 'y an "n$uan&e &o!*any a&&e-"te'y the In$uan&e Co!!"$$"one. 7o/ee, th"$ Se&t"on /a$ $u'$e
FACTS: Th"$ *et"t"on %o e"e/ $ee$ to ee$e an- $et a$"-e the O&to'e 9, 2002 -e&"$"on o% the Cout o% A**eal$ an- "t$ Januay 12, 2004 e$olut"on, /h"&h a%%"!e- "n toto the June 10, 199( -e&"$"on o% the Re#"onal T"al Cout o% aat" C"ty, 8an&h 61 "n C""l Ca$e No. 92@363. On a&h 2(, 1992, e$*on-ent$ "&hael an- Jeanette A$un&"on le%t an"la on 'oa- Ja*an A"l"ne$E JA5 Fl"#ht (42 'oun- %o o$ An#ele$. The" "t"neay "n&lu-e- a $to*@oe "n Na"ta an- an oen"#ht $tay at 7otel N"o Na"ta. =*on a"al at Na"ta, $. No"o >tou@7"#u&h" o% JA en-o$e- the" a**l"&at"on$ %o $hoe *a$$ an- -"e&te- the! to the Ja*ane$e "!!"#at"on o%%"&"al. A $hoe *a$$ "$ e
?hethe
o
not
JA
"$
l"a'le
o%
'ea&h
o%
&onta&t
o%
&a"a#e.
S"-e I$$ue$: ?hethe o not JA "$ l"a'le %o !oal, e;e!*lay -a!a#e$, ?hethe o not the *la"nt"%% "$ l"a'le %o attoneyE$ %ee an- &o$t o% $u"t "n&ue- JA &ounte&la"!5 Rul"n#: The &out %"n-$ that JA -"- not 'ea&h "t$ &onta&t o% &a"a#e /"th e$*on-ent$. It !ay 'e tue that JA ha$ the -uty to "n$*e&t /hethe "t$ *a$$en#e$ hae the ne&e$$ay tael -o&u!ent$, ho/ee, $u&h -uty
-oe$ not e;ten- to &he&"n# the ea&"ty o% eey enty "n the$e -o&u!ent$. JA &oul- not ou&h %o the authent"&"ty o% a *a$$*ot an- the &oe&tne$$ o% the ent"e$ thee"n. The *o/e to a-!"t o not an al"en "nto the &ounty "$ a $oee"#n a&t /h"&h &annot 'e "nte%ee- /"th een 'y JA. Th"$ "$ not /"th"n the a!'"t o% the &onta&t o% &a"a#e entee- "nto 'y JA an- hee"n e$*on-ent$. A$ $u&h, JA $houl- not 'e %aulte%o the -en"al o% e$*on-ent$E $hoe *a$$ a**l"&at"on$. In the Re$*on-ent$ &la"! that *et"t"one 'ea&he- "t$ &onta&t o% &a"a#e /hen "t %a"le- to e;*la"n to the "!!"#at"on autho"t"e$ that they ha- oen"#ht ou&he$ at the 7otel N"o Na"ta. They "!*ute- that JA -"- not e;hau$t all !ean$ to *eent the -en"al o% the" $hoe *a$$ enty a**l"&at"on$. JA o any o% "t$ e*e$entat"e$ hae no autho"ty to "nte%ee /"th o "n%luen&e the "!!"#at"on autho"t"e$. The !o$t that &oul- 'e e;*e&te- o% JA "$ to en-o$e e$*on-ent$E a**l"&at"on$, /h"&h $. 7"#u&h" -"- "!!e-"ately u*on the" a"al "n Na"ta. oal -a!a#e$ !ay 'e e&oee- "n &a$e$ /hee one /"ll%ully &au$e$ "nuy to *o*ety, o "n &a$e$ o% 'ea&h o% &onta&t /hee the othe *aty a&t$ %au-ulently o "n 'a- %a"th. >;e!*lay -a!a#e$ ae "!*o$e- 'y /ay o% e;a!*le o &oe&t"on %o the *u'l"& #oo-, /hen the *aty to a &onta&t a&t$ "n /anton, %au-ulent, o**e$$"e o !aleolent !anne. AttoneyE$ %ee$ ae allo/e- /hen e;e!*lay -a!a#e$ ae a/a-e- an- /hen the *aty to a $u"t "$ &o!*elle- to "n&u e;*en$e$ to *ote&t h"$ "ntee$t.P1(Q Thee 'e"n# no 'ea&h o% &onta&t no *oo% that JA a&te- "n /anton, %au-ulent o !aleolent !anne, thee "$ no 'a$"$ %o the a/ao% any %o! o% -a!a#e$. Ne"the $houl- JA 'e hel- l"a'le to e"!'u$e e$*on-ent$ the a!ount o% =SD)00.00. It ha$ 'een $u%%"&"ently *oen that the a!ount *eta"ne- to ISC, an a#en&y $e*aate an- -"$t"n&t %o! JA, "n *ay!ent %o the a&&o!!o-at"on$ *o"-e- to e$*on-ent$. The *ay!ent$ -"- not "n any !anne a&&ue to the 'ene%"t o% JA. 7o/ee, /e %"n- that the Cout o% A**eal$ &oe&tly -"$!"$$e- JAE$ &ounte&la"! %o l"t"#at"on e;*en$e$, e;e!*lay -a!a#e$ an- attoneyE$ %ee$. The a&t"on /a$ %"le- 'y e$*on-ent$ "n ut!o$t #oo- %a"th annot !an"%e$tly %"olou$. Re$*on-ent$ hone$tly 'el"ee- that JA 'ea&he- "t$ &onta&t. A *e$onE$ "#ht to l"t"#ate $houl- not 'e *enal"e- 'y hol-"n# h"! l"a'le %o -a!a#e$. Th"$ "$ e$*e&"ally tue /hen the %"l"n# o% the &a$e "$ to en%o&e /hat he 'el"ee$ to 'e h"$ "#ht%ul &la"! a#a"n$t anothe althou#h %oun- to 'e eoneou$.P ?7>R>FOR>, "n "e/ o% the %oe#o"n#, the "n$tant *et"t"on "$ ARTB GRANT>. The O&to'e 9, 2002 -e&"$"on o% the Cout o% A**eal$ an- "t$ Januay 12, 2004 e$olut"on "n [email protected]. C No. (440, ae R>>RS> an- S>T ASI> "n$o%a a$ the %"n-"n# o% 'ea&h on the *at o% *et"t"one an- the a/a- o% -a!a#e$, attoneyE$ %ee$ an- &o$t$ o% the $u"t "n %ao o% e$*on-ent$ "$ &on&ene-. A&&o-"n#ly, thee 'e"n# no 'ea&h o% &onta&t on the *at o% *et"t"one, the a/a- o% a&tual, !oal an- e;e!*lay -a!a#e$, a$ /ell a$ attoneyE$ %ee$ an- &o$t$ o% the $u"t "n %ao o% e$*on-ent$ "&hael an- Jeanette A$un&"on, "$ >>T> %o la& o% 'a$"$. 7o/ee, the -"$!"$$al %o la& o% !e"t o% *et"t"oneE$ &ounte&la"! %o l"t"#at"on e;*en$e$, e;e!*lay -a!a#e$ an- attoneyE$ %ee$, "$ S=STAIN>. No *onoun&e!ent a$ to &o$t$.
I#s$r%#ce C%se 6iest8 G%is%#o C%%0%#) I#c. +. I#s$r%#ce Co"%#0 O9 Nort! Aeric% ,//-
G.R. No. 14()39
June ), 2006
Lesso#s A""lic%ble8 E:isti# I#terest ,I#s$r%#ce L%;s A""lic%ble8 Article 13/4)Article 1-) Article /7 o9 t!e Civil Co(e) Sectio# 1 o9 I#s$r%#ce Co(e
FACTS: Inte&a*"tol aet"n# Co*oat"on IC5 "$ the !ae o% ?an#le 8lue Jean$. /h"le e" Stau$$ h"l$.5 In&. SI5 "$ the lo&al -"$t"'uto o% *o-u&t$ 'ea"n# ta-e!a$ o/ne- 'y e" Stau$$ Co IC an- SI $e*aately o'ta"ne- %o! In$uan&e Co!*any o% Noth A!e"&a %"e "n$uan&e *ol"&"e$ %o the" 'oo -e't en-o$e!ent$ elate- to the" ea-y@!a-e &loth"n# !ate"al$ /h"&h hae 'een $ol- o -el"ee- to a"ou$ &u$to!e$ an- -eale$ o% the In$ue- any/hee "n the h"l"**"ne$ /h"&h ae un*a"- 4 -ay$ a%te the t"!e o% the lo$$ Fe'uay 2, 1991: Ga"$ano Su*e$toe Co!*le; "n Ca#ayan -e Oo C"ty, o/ne- 'y Ga"$ano Ca#ayan, In&., &onta"n"n# the ea-y@!a-e &loth"n# !ate"al$ $ol- an- -el"ee- 'y IC an- SI /a$ &on$u!e- 'y %"e. Fe'uay 4, 1992: In$uan&e Co!*any o% Noth A!e"&a %"le- a &o!*la"nt %o -a!a#e$ a#a"n$t Ga"$ano Ca#ayan, In&. alle#e$ that IC an- SI %"le- the" &la"!$ un-e the" e$*e&t"e %"e "n$uan&e *ol"&"e$ /h"&h "t *a"- thu$ "t /a$ $u'o#ate- to the" "#ht$ Ga"$ano Ca#ayan, In&: not 'e hel- l"a'le 'e&au$e "t /a$ -e$toye- -ue to %otu"t"e$ eent o %o&e !aeue RTC: IC an- SI eta"ne- o/ne$h"* o% the -el"ee- #oo-$ unt"l %ully *a"-, "t !u$t 'ea the lo$$ e$ *e"t -o!"no5 CA: Ree$e- @ $ale$ "no"&e$ "$ an e;&e*t"on un-e At"&le 104 15 o% the C""l Co-e to e$ *e"t -o!"no ISS=>: ?N In$uan&e Co!*any o% Noth A!e"&a &an &la"! a#a"n$t Ga"$ano Ca#ayan %o the -e't that /a$ "$nue7>: B>S. *et"t"on "$ *atly GRANT>. o-e to *ay 3,613 "$ >>T> "n$uan&e *ol"&y "$ &lea that the $u'e&t o% the "n$uan&e "$ the 'oo -e't$ an- NOT #oo-$ $ol- an-el"ee- to the &u$to!e$ an- -eale$ o% the "n$ue ART. 104. =nle$$ othe/"$e a#ee-, the #oo-$ e!a"n at the $elle$ "$ unt"l the o/ne$h"* thee"n "$ tan$%ee- to the 'uye, 'ut /hen the o/ne$h"* thee"n "$ tan$%ee- to the 'uye the #oo-$ ae at the 'uye$ "$ /hethe a&tual -el"ey ha$ 'een !a-e o not, e;&e*t that: 15 ?hee -el"ey o% the #oo-$ ha$ 'een !a-e to the 'uye o to a 'a"lee %o the 'uye, "n *u$uan&e o% the &onta&t an- the o/ne$h"* "n the #oo-$ ha$ 'een eta"ne- 'y the $elle !eely to $e&ue *e%o!an&e 'y the 'uye o% h"$ o'l"#at"on$ un-e the &onta&t, the #oo-$ ae at the 'uye$ "$ %o! the t"!e o% $u&h -el"ey IC an- SI -"- not lo$e &o!*lete "ntee$t oe the #oo-$. They hae an "n$ua'le "ntee$t unt"l %ull *ay!ent o% the alue o% the -el"ee- #oo-$. =nl"e the &""l la/ &on&e*t o% e$ *e"t -o!"no, /hee o/ne$h"* "$ the 'a$"$ %o &on$"-eat"on o% /ho 'ea$ the "$ o% lo$$, "n *o*ety "n$uan&e, one$ "ntee$t "$ not -ete!"ne- 'y &on&e*t o% t"tle, 'ut /hethe "n$ue- ha$ $u'$tant"al e&ono!"& "ntee$t "n the *o*ety Se&t"on 13 o% ou In$uan&e Co-e -e%"ne$ "n$ua'le "ntee$t a$ +eey "ntee$t "n *o*ety, /hethe eal o *e$onal, o any elat"on theeto, o l"a'"l"ty "n e$*e&t theeo%, o% $u&h natue that a &onte!*late- *e"l !"#ht -"e&tly -a!n"%y the "n$ue-.+ aenthet"&ally, un-e Se&t"on 14 o% the $a!e Co-e, an "n$ua'le "ntee$t "n *o*ety !ay &on$"$t "n: a5 an e;"$t"n# "ntee$t '5 an "n&hoate "ntee$t %oun-e- on e;"$t"n# "ntee$t o &5 an e;*e&tan&y, &ou*le- /"th an e;"$t"n# "ntee$t "n that out o% /h"&h the e;*e&tan&y a"$e$. Anyone ha$ an "n$ua'le "ntee$t "n *o*ety /ho -e"e$ a 'ene%"t %o! "t$ e;"$ten&e o /oul- $u%%e lo$$ %o! "t$ -e$tu&t"on. "t "$ $u%%"&"ent that the "n$ue- "$ $o $"tuate- /"th e%een&e to the *o*ety that he /oul- 'e l"a'le to lo$$ $houl- "t 'e "nue- o -e$toye- 'y the *e"l a#a"n$t /h"&h "t "$ "n$uean "n$ua'le "ntee$t "n *o*ety -oe$ not ne&e$$a"ly "!*ly a *o*ety "ntee$t "n, o a l"en u*on, o *o$$e$$"on o%, the $u'e&t
!atte o% the "n$uan&e, an- ne"the the t"tle no a 'ene%"&"al "ntee$t "$ e
O'l"#at"on$ an- Conta&t$ G.R. No. 9)9( e&e!'e 14, 1999 FLORENCIA T. HUI&ONHOA) "etitio#er) vs. COURT OF APPEALS) SPOUSES RUFINA G. LI' AN6 ANTHON< LI') LORETA GO*OCCO CHUA AN6 SPOUSES SE+ERINO AN6 PRISCILLA GO*OCCO) res"o#(e#ts. G.R. No. 1/-/4 6eceber 14) 1555 SE+ERINO GO*OCCO %#( LORETA GO*OCCO CHUA) "etitio#ers) vs. COURT OF APPEALS) HON. HER'OGENES R. LIWAG) %s *$(e o9 t!e RTC o9 '%#il% &r%#c! 33 %#( FLORENCIA HUI&ONHOA)res"o#(e#ts.
FACTS: On June ), 19)3, Floen&"a T. 7u"'onhoa Floen&"a5 entee- "nto a !e!oan-u! o% a#ee!ent /"th $"'l"n#$ Ru%"na Goo&&o "! Ru%"na5, See"no Goo&&o See"no5 anoeta Goo&&o Chua oeta5 $t"*ulat"n# that Floen&"a T. 7u"'onhoa /oul- lea$e %o! the! Goo&&o$5 thee 35 a-a&ent &o!!e&"al lot$ at Ilaya Steet, 8"non-o, an"la. On June 30, 19)3, *u$uant to the !e!oan-u! o% a#ee!ent, the *at"e$ "ne- a &onta&t o% lea$e o% the $a!e thee lot$. •
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T>RS OF T7> CONTRACT: Goo-/"ll !oney: 900,000 300,000ea&h5 e$ee $hall *ay 1,000!onth to ea&h le$$o 4,000!onth5 %o the lea$e*e!"$e$, /"th"n the %"$t -ay$ o% ea&h !onth. e$$ee /a$ #"en an e"#ht@!onth *e"o- to &on$tu&t the 'u"l-"n# a%te e"#ht !onth$, the ent *ay!ent /"ll a&&ue. NOT>: u"n# the *e"o- o% &on$tu&t"on, no !onthly ental $hall 'e &olle&te- %o! the e$$ee. • •
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ea$e e"o-: F"%teen 15 Bea$ Rene/a'le u*on a#ee!ent5 e$$ee /"ll &on$tu&t a %ou $toey 'u"l-"n# e$$ee &an $u'lea$e. e$$ee /"ll -ete!"ne all the a!ount &olle&te- a$ ent an- "t /"ll 'elon# to le$$ee. An "n&ea$e "n the ental$ o% the $u'@lea$e /"ll 'e the 'a$"$ %o the *e&enta#e "n&ea$e o% !onthly ental that le$$ee /"ll hae to *ay le$$o$. =*on the te!"nat"on o% the lea$e, the o/ne$h"* an- t"tle to the 'u"l-"n# on the lot$ /oul- auto!at"&ally tan$%e to the le$$o, een /"thout any "!*le!ent"n# -o&u!ent. Real e$tate ta;e$ on the lan- le$$o, Ta;e$ on the 'u"l-"n# le$$ee, 'ut the U U le$$ee /a$ autho"e- to a-an&e the !oney nee-e- to !eet the le$$o$E o'l"#at"on$ $u&h a$ the *ay!ent o% eal e$tate ta;e$ on the" lot$. The le$$o$ /oul- -e-u&t %o! the !onthly ental -ue all $u&h a-an&e$ !a-e 'y the le$$ee. A%te the e;e&ut"on o% the &onta&t, the Goo&&o$ e;e&ute- a *o/e o% attoney #ant"n# 7u"'onhoa the autho"ty to o'ta"n &e-"t %a&"l"t"e$ "n o-e that the thee lot$ &oul- 'e !ot#a#e- %o a l"!"te- one@yea *e"o- %o! July 19)3. On Se*te!'e 12, 19)3, 7u"'onhoa o'ta"ne- %o! Ch"na 8an"n# Co*oat"on &e-"t %a&"l"t"e$ not e;&ee-"n# One "ll"on 1,000.000.005 e$o$. S"!ultaneou$ly, $he !ot#a#e- the thee lot$ to the &e-"to 'an. P2Q F"%teen -ay$ late o on Se*te!'e 2(, 19)3, to 'e *e&"$e, 7u"'onhoa $"#ne- a &onta&t a!en-"n# the eal e$tate !ot#a#e "n %ao o% Ch"na 8an"n# Co*oat"on /hee'y the &e-"t %a&"l"t"e$ /ee "n&ea$e- to the *"n&"*al $u! o% Thee "ll"on 3,000,000.005 e$o$. P3Q u"n# the &on$tu&t"on o% the 'u"l-"n# /h"&h late 'e&a!e no/n a$ oule; e&han-"$e Cente, P4Q %o!e Senato 8en"#no A
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e%o!at"on o% the lea$e &onta&t. Goo&&oE$ Ca$e TC e&"$"on: #ante- 7u"'onhoaE$ *aye that the &a$e 'e e;&lu-e%o! the o*eat"on o% the Rule on Su!!ay o&e-ue •
Re*u'l"& o% the h"l"**"ne$ Su*e!e Cout 8a#u"o C"ty S>CON IISION
ASIAN CONSTRUCTION AND DEVELOPMENT CORPORATION, Petitioner,
- versus -
G.R. No. 153827 Present: PUNO, J., Chairperson,* SANO!A"#GU$%&RR&', ** CORONA, A'CUNA, an( GARC%A, JJ.
Pro)+ate(: PHILIPPINE COMMERCIAL INTERNATIONAL BANK, Responent!
Apri+ 25, 2--
/###################################################################################/ >CISION GARCIA, J.: In th"$ *et"t"on %o e"e/ un-e Rule 4 o% the Rule$ o% Cout, *et"t"one A$"an Con$tu&t"on aneelo*!ent Co*oat"on o ASIAONSTR=T, $ee$ the ee$al an- $ett"n# a$"-e o% the -e&"$"onP1Q-ate- a&h 1, 2002 an- the Re$olut"onP2Q -ate- June 3, 2002 o% the Cout o% A**eal$ CA5 "n [email protected]. C No. 6)1)9. The a$$a"le- -e&"$"on a%%"! /"th !o-"%"&at"on the Su!!ay Ju-#!ent en-ee- 'y the Re#"onal T"al Cout RTC5 o% aat" C"ty "n an a&t"on %o a $u! o% !oney theeat &o!!en&e- 'y the hee"n e$*on-ent, h"l"**"ne Co!!e&"al Intenat"onal 8an CI8AN5 a#a"n$t the *et"t"one, /h"le the &hallen#e- e$olut"on - en"e- *et"t"one$ !ot"on %o e&on$"-eat"on. The %a&t$: On Fe'uay 24, 1999, "n the RTC o% aat" C"ty, e$*on-ent CI8AN %"le- a &o!*la"nt P3Q %o a $u! o% !oney /"th *aye %o a /"t o% *el"!"nay atta&h!ent a#a"n$t *et"t"one ASIAONSTR=T. o&ete- a$ C""l Ca$e No. 99@432, the &o!*la"nt alle#e-, "nte al"a, a$ %ollo/$: FIRST CA=S> OF ACTION
2.01 On a"ou$ o&&a$"on$, ASIAONSTR=T o'ta"ne- =.S. -olla -eno!"nate- &e-"t a&&o!!o-at"on$ %o! CI8AN "n the a!ount o% Fou "ll"on Fou 7un-e- >"#hty Seen Thou$an=.S. -olla$ =SD4,4)(,000.005, e;&lu$"e o% "ntee$t$, &ha#e$ an- %ee$ theeon an- the &o$t o% &olle&t"n# the $a!e. The$e &e-"t a&&o!!o-at"on$ ae &oee- 'y the %ollo/"n# *o!"$$oy note$: ;;; ;;; ;;; 2.02 o!*t an- %a"th%ul *ay!ent o% all the %oe#o"n# *o!"$$oy note$ /a$ $e&ue- 'y the %ollo/"n# -ee-$ o% a$$"#n!ent e;e&ute- 'y ASIAONSTR=T "n %ao o% CI8AN: a5 eeo% A$$"#n!ent o% Re&e"a'le$Conta&t o&ee-$ -ate- 20 July 1994 /hee ASIAONSTR=T a$$"#ne- "t$ e&e"a'le$ %o! "t$ Conta&t /"th the Nat"onal o/e Co*oat"on NC5 "n the a!ount o% .4,00,000 '5 ee- o% A$$"#n!ent o% Re&e"a'le$ -ate- 2) June 199 /hee ASIAONSTR=T a$$"#ne- "t$ e&e"a'le$ %o! "t$ Conta&t /"th the NC "n the a!ount o%26,2)1,000.00 &5 ee- o% A$$"#n!ent o% Re&e"a'le$ -ate- 2) Au#u$t 199 /hee ASIAONSTR=T a$$"#ne- "t$ e&e"a'le$ %o! "t$ Su'@Conta&t /"th A88 o/e, In&., "n the a!ount o% 43,000,000.00 -5 ee- o% A$$"#n!ent o% Conta&t o&ee-$ -ate- 2( a&h 1996 /hee ASIAONSTR=T a$$"#ne"t$ e&e"a'le$ %o! "t$ &onta&t$ /"th NOC "n the a##e#ate a!ount o% 46,000,000.00 ane5 ee- o% A$$"#n!ent o% Conta&t o&ee-$ -ate- 20 Fe'uay 199( /hee ASIAONSTR=T a$$"#ne- "t$ e&e"a'le$ %o! the O!at h"l"**"ne$, In&., "n the a##e#ate a!ount o% =SD3,30,000.00 2.03 All the %oe#o"n# -ee-$ o% a$$"#n!ent$ $t"*ulate, a!on# othe$, the %ollo/"n# te!$ an&on-"t"on$: a5 The a$$"#n!ent "$ %o the *u*o$e o% $e&u"n# *ay!ent o% the *"n&"*al a!ount an- the "ntee$t$ an- 'an &ha#e$ a&&u"n# theeon, the &o$t$ o% &olle&t"n# the $a!e an- all othe e;*en$e$ /h"&h CI8AN !ay 'e *ut "n &onne&t"on /"th o a$ an "n&"-ent o% the a$$"#n!ent '5 That the a$$"#n!ent $e&ue$ al$o any e;ten$"on o ene/al o% the &e-"t /h"&h "$ the $u'e&t theeo% a$ any an- all othe o'l"#at"on$ o% ASIAONSTR=T o% /hatee "n- an- natue a$ a**ea "n the e&o-$ o% CI8AN, /h"&h ASIAONSTR=T a&&e*t$ a$ the %"nal an- &on&lu$"e e"-en&e o% $u&h o'l"#at"on$ to CI8AN, /hethe &onta&te- 'e%oe, -u"n# o a%te the &on$t"tut"on o% Pthe a$$"#n!ent a#ee!entQ &5 That CI8AN autho"e$ ASIAONSTR=T, at the latte$ e;*en$e, to &olle&t an- e&e"e %o PCI8ANQ all the Re&e"a'le$ an-5 That ASIAONSTR=T $hall hae no "#ht, an- a#ee$ not to u$e any o% the *o&ee-$ o% any &olle&t"on$, "t 'e"n# a#ee- 'y the *at"e$ that PASIAONSTR=TQ -"e$t$ "t$el% o% all the "#ht$, t"tle an- "ntee$t "n $a"- Re&e"a'le$ an- the *o&ee-$ o% the &olle&t"on e&e"e- theeon. 2.04 The *o!"$$oy note$ hae e!a"ne- not %ully *a"- -e$*"te the" ha"n# 'e&o!e -ue an-e!an-a'le. Re*eate- e'al an- /"tten -e!an-$ /ee !a-e u*on ASIAONSTR=T, 'ut to no aa"l. It ha$ %a"le- an- e%u$e-, an- &ont"nue$ to %a"l an- e%u$e, to *ay "t$ out$tan-"n# o'l"#at"on$ to CI8AN 2.0 A$ a e$ult o% ASIAONSTR=T$ e%u$al to *ay "t$ out$tan-"n# o'l"#at"on$, CI8AN /a$ &on$ta"ne- to e%e the !atte to &oun$el an- thu$ "n&u attoney$ %ee$ an- le#al &o$t$.
2.06 The a##e#ate un*a"- o'l"#at"on o% ASIAONSTR=T to CI8AN, a$ o% 31 e&e!'e 199), a!ount$ to =SD4,3,446.06, 'oen -o/n a$ %ollo/$: "n&"*al =SD 4,06(,)6(.23 Intee$t =SD 291,263.2( enalt"e$ =SD 194,31.6 TOTA =SD 4,3,446.06 Fo "t$ $e&on- &au$e o% a&t"on, CI8AN alle#e- "n the $a!e &o!*la"nt a$ %ollo/$: S>CON CA=S> OF ACTION 4.02 a$ a e$ult o% the %au-ulent a&t$ o% ASIAONSTR=T, CI8AN $u%%ee- the %ollo/"n# -a!a#e$, all o% /h"&h ASIAONSTR=T !u$t 'e hel- to *ay CI8AN: 4.02.1 >;e!*lay -a!a#e$, "n the "ntee$t o% *u'l"& #oo- an- *u*o$e$ o% &oe&t"on, "n the a!ount o% not le$$ than .0,000.00 4.02.2 Attoney$ %ee$ "n the a!ount o% not le$$ than . 1,)00,000.00 an4.02.3 Co$t$ o% $u"t. In $u**ot o% "t$ *aye %o a /"t o% *el"!"nay atta&h!ent e!'o-"e- "n the &o!*la"nt, *la"nt"%% CI8AN alle#e$ the %ollo/"n#: 3.02 ;;;
ASIAONSTR=T "$ #u"lty o% %au- "n &onta&t"n# the -e't, "n the *e%o!an&e theeo%, o 'oth,
303. CI8AN a#ee- to ente "nto the a'oe@!ent"one- &e-"t a&&o!!o-at"on$ *"!a"ly 'e&au$e o% the e;"$ten&e o% the -ee-$ o% a$$"#n!ent l"$te- a'oe. 7o/ee, %o! tele*hone "n. Salae"a o% CI8AN. ;;; Nee-le$$ to $ay, ASIAONSTR=T ha$ %au-ulently &olle&te- $u&h e&e"a'le$ to the *eu-"&e o% CI8AN. 3.04 "t "$ e"-ent that ASIAONSTR=T nee ha- any "ntent"on o% &o!*ly"n# /"th the -ee-$ o% a$$"#n!ent. ASIAONSTR=T only !"$le- CI8AN "nto 'el"e"n# that "t ha- $u%%"&"ent $e&u"ty to en$ue *ay!ent o% "t$ loan o'l"#at"on$. 3.0 Altenat"ely, #ant"n#, "n a#u!ent" #at"a, that ASIAONSTR=T, at the t"!e "t e;e&ute- the %oe#o"n# -ee-$ o% a$$"#n!ent, eally "nten-e- to a'"-e 'y the" te!$ an- &on-"t"on$, "t neethele$$ &o!!"tte- !an"%e$t %au- /hen "t &olle&te- the &onta&t *o&ee-$, an- "n$tea- o% e!"tt"n# the! to CI8AN, u$e- the! %o "t$ o/n *u*o$e$. In an o-e P4Q -ate- A*"l 13, 1999, the t"al &out, a%te e&e""n# e; *ate CI8AN$ e"-en&e "n $u**ot o% "t$ *aye %o *el"!"nay atta&h!ent, -"e&te- the "$$uan&e o% the -e$"e- /"t, thu$: ?7>R>FOR>, let a /"t o% *el"!"nay atta&h!ent "$$ue a#a"n$t all the *o*ety o% - e%en-ant not e;e!*t %o! e;e&ut"on o $o !u&h theeo% a$ !ay 'e $u%%"&"ent to $at"$%y *la"nt"%%$ *"n&"*al &la"! o% =SD4,3,446.06, e*e$ent"n# the alle#e- un*a"- o'l"#at"on o% -e%en-ant, "n&lu$"e o% "ntee$t an-
*enalty &ha#e$, a$ o% e&e!'e 31, 199), /h"&h "$ eR>. ?"th *la"nt"%% CI8AN ha"n# *o$te- the e
8e%oe the *en-"n# "n&"-ent !ot"on %o $u!!ay u-#!ent5 &oul- 'e e$ole- 'y the t"al &out, *la"nt"%% CI8AN /a"e- "t$ &la"! %o e;e!*lay -a!a#e$ an- a#ee- to e-u&e "t$ &la"! %o attoney$ %ee$ %o! 1,)00,000.00 to 1,260,000.00, 'ut !a-e "t &lea that "t$ /a"e o% e;e!*lay -a!a#e$ ane-u&t"on o% attoney$ %ee$ ae $u'e&t to the &on-"t"on that a %ull an- %"nal -"$*o$"t"on o% the &a$e "$ o'ta"ne- "a $u!!ay u-#!ent. On ay 16, 2000, the t"al &out, a&t"n# %aoa'ly on CI8AN$ !ot"on %o $u!!ay u-#!ent, &a!e out /"th "t$ Su!!ay Ju-#!ent,P)Q the -e&etal*ot"on o% /h"&h ea-$: ?7>R>FOR>, u-#!ent "$ hee'y en-ee- o-e"n# -e%en-ant to *ay *la"nt"%%: 1. the $u! o% =SD4,3,446.06, o "t$ eR>. >;*la"n$ the t"al &out "n en-e"n# "t$ Su!!ay Ju-#!ent: A thoou#h e;a!"nat"on o% the *at"e$ *lea-"n#$ an- the" e$*e&t"e $tan- "n the %oe#o"n# !ot"on, the &out %"n-$ that "n-ee- /"th -e%en-ant$ a-!"$$"on o% the %"$t &au$e o% a&t"on thee e!a"n$ no IG7T OF A T7> FOR>GOING, the a**eal "$ ARTIAB GRANT>. The e&"$"on a**eale%o! "$ AFFIR> /"th the OIFICATION T7AT T7> A?AR FOR ATTORN>BS F>>S "$ e-u&eto 1,000,000.00. SO OR>R>. ?"th "t$ !ot"on %o e&on$"-eat"on ha"n# 'een -en"e- 'y the CA "n "t$ Re$olut"on P10Q o% June 3, 2002, *et"t"one "$ no/ /"th u$ "a the *e$ent e&ou$e, a"$"n# the %ollo/"n# "$$ue$: I ?7>T7>R OR NOT T7>R> IS A G>N=IN> ISS=> AS TO A AT>RIA FACT ?7IC7 R=>S O=T T7> RORI>TB OF A S=ARB J=G>NT. II ?7>T7>R OR NOT T7> A?AR OF ATTORN>BS F>>S IS >WOR8ITANT OR =NCONSCIONA8>. ?e >NB. A$ "n the t/o &out$ 'elo/, "t "$ *et"t"one$ *o$tue that $u!!ay u-#!ent "$ "!*o*e "n th"$ &a$e 'e&au$e thee ae #enu"ne "$$ue$ o% %a&t /h"&h hae to 'e the$he- out -u"n# t"al, to /"t: a5 /hethe o not *et"t"one /a$ a'le to &olle&t only a *ot"on o% the &onta&t *o&ee-$e&e"a'le$ "t /a$ 'oun- to -el"e, e!"t an- ten-e to e$*on-ent un-e the $eeal -ee-$ o% a$$"#n!ent "t e;e&ute- "n %ao o% the latte an- '5 /hethe o not *et"t"one %au-ulently !"$a**o*"ate- an- u$e- %o "t$ 'ene%"t the $a"*o&ee-$e&e"a'le$. >#o, $o *et"t"one !a"nta"n$, #enu"ne t"a'le "$$ue$ o% %a&t ae *e$ent "n th"$ &a$e, /h"&h thee'y *e&lu-e$ en-"t"on o% $u!!ay u-#!ent. ?e ae not *e$ua-e-. =n-e Rule 3 o% the 199( Rule$ o% o&e-ue, a$ a!en-e-, e;&e*t a$ to the a!ount o% -a!a#e$, /hen thee "$ no #enu"ne "$$ue a$ to any !ate"al %a&t an- the !o"n# *aty "$ ent"tle- to a u-#!ent a$ a !atte o% la/, $u!!ay u-#!ent !ay 'e allo/e-.P11Q Su!!ay o a&&eleate- u-#!ent "$ a *o&e-ual te&hn"
=n-e the Rule$, $u!!ay u-#!ent "$ a**o*"ate /hen thee ae no #enu"ne "$$ue$ o% %a&t /h"&h &all %o the *e$entat"on o% e"-en&e "n a %ull@'lo/n t"al. >en "% on the" %a&e the *lea-"n#$ a**ea to a"$e "$$ue$, /hen the a%%"-a"t$, -e*o$"t"on$ an- a-!"$$"on$ $ho/ that $u&h "$$ue$ ae not #enu"ne, then $u!!ay u-#!ent a$ *e$&"'e- 'y the Rule$ !u$t en$ue a$ a !atte o% la/. The -ete!"nat"e %a&to, thee%oe, "n a !ot"on %o $u!!ay u-#!ent, "$ the *e$en&e o a'$en&e o% a #enu"ne "$$ue a$ to any !ate"al %a&t. A #enu"ne "$$ue "$ an "$$ue o% %a&t /h"&h e;h"'"t$ A to T@ 3, a--u&e- "n e"-en&e 'y the Pe$*on-entQ, -u"n# the hea"n# on "t$ *lea %o the "$$uan&e, 'y the Cout a
/a$ the *o;"!ate &au$e o% "t$ %"nan&"al -"$te$$. It 'ea$ $te$$"n# that the P*et"t"oneQ /a$ 'u-ene- to -e!on$tate, 'y "t$ A%%"-a"t$ an- -o&u!entay e"-en&e, that, "n-ee-, the h"l"**"ne$ /a$ en#ul%e- "n an e;tao-"nay -e%lat"on o% the h"l"**"ne e$o an- that the $a!e /a$ the *o;"!ate &au$e o% the %"nan&"al -"$te$$, "t &la"!e-, "t $u%%ee-. ;;; ;;; ;;; ?hee, on the 'a$"$ o% the e&o-$, "n&lu$"e o% the *lea-"n#$ o% the *at"e$, an- the te$t"!on"al an-o&u!entay e"-en&e a--u&e- 'y the Pe$*on-entQ, $u**ot"e o% "t$ *lea %o a /"t o% *el"!"nay atta&h!ent, the Pe$*on-entQ ha- &au$e$ o% a&t"on a#a"n$t the P*et"t"oneQ, "t 'ehooe- the P*et"t"oneQ to &ontoet the $a!e /"th a%%"-a"t$-o&u!entay e"-en&e $ho/"n# a *"!a %a&"e #enu"ne -e%en$e. A$ the A**ellate Cout o% Ill"no"$ $o a*tly -e&lae-: The -e%en-ant !u$t $ho/ that he ha$ a 'ona %"-e -e%en$e to the a&t"on, one /h"&h he !ay 'e a'le to e$ta'l"$h. It !u$t 'e a *lau$"'le #oun- o% -e%en$e, $o!eth"n# %a"ly a#ua'le an- o% a $u'$tant"al &haa&te. Th"$ he !u$t $ho/ 'y a%%"-a"t$ o othe *oo%. The t"al &out, o% &ou$e, !u$t -ete!"ne %o! the a%%"-a"t$ %"le- /hethe the -e%en-ant ha$ "nte*o$e- a $u%%"&"ently #oo- -e%en$e to ent"tle "t to -e%en-, 'ut /hee -e%en-ant$ a%%"-a"t$ *e$ent no $u'$tant"al t"a'le "$$ue$ o% %a&t, the &out /"ll #ant the !ot"on %o $u!!ay u-#!ent. ;;; ;;; ;;; The %a"lue o% the P*et"t"oneQ to a**en- to "t$ O**o$"t"on any A%%"-a"t$ $ho/"n# that "t$ -e%en$e$ /ee not &ont"e- o &o$!et"& to -elay u-#!ent &eate- a *e$u!*t"on that the -e%en$e$ o% the P*et"t"oneQ /ee not o%%ee- "n #oo- %a"th an- that the $a!e &oul- not 'e $u$ta"ne- =n"te$ State$ e$u$ F"e-le, et al., Fe-eal Re*ote-, 2n-, ()5. I%, "n-ee-, the P*et"t"oneQ 'el"ee- "t that /a$ *eente- %o! &o!*ly"n# /"th "t$ o'l"#at"on$ to the Pe$*on-entQ, un-e "t$ &onta&t$, "t $houl- hae "nte*o$e- a &ounte&la"!$ %o e$&"$$"on o% &onta&t$, &on%o!a'ly /"th the *onoun&e!ent o% ou Su*e!e Cout, thu$: ;;; ;;; ;;; The P*et"t"oneQ -"- not. Th"$ only e;*o$e- the 'aenne$$ o% the *o$e o% the P*et"t"oneQ. The P*et"t"oneQ !ay hae e;*e"en&e- %"nan&"al -"%%"&ult"e$ 'e&au$e o% the 199( e&ono!"& &"$"$ that en$ue- "n A$"a. 7o/ee, the $a!e -oe$ not &on$t"tute a al"- u$t"%"&at"on %o the P*et"t"oneQ to ene#e on "t$ o'l"#at"on$ to the Pe$*on-entQ. The P*et"t"oneQ &annot een %"n- $ola&e "n At"&le$ 1266 an- 126( o% the Ne/ C""l Co-e %o, a$ -e&lae- 'y ou Su*e!e Cout: It "$ a %un-a!ental ule that &onta&t$, on&e *e%e&te-, '"n- 'oth &onta&t"n# *at"e$, an- o'l"#at"on$ a"$"n# thee%o! hae the %o&e o% la/ 'et/een the *at"e$ an- $houl- 'e &o!*l"e- /"th "n #oo- %a"th. 8ut the la/ e&o#n"e$ e;&e*t"on$ to the *"n&"*le o% the o'l"#atoy %o&e o% &onta&t$. One e;&e*t"on "$ la"-o/n "n At"&le 1266 o% the C""l Co-e, /h"&h ea-$:The -e'to "n o'l"#at"on$ to -o $hall al$o 'e elea$e/hen the *e$tat"on 'e&o!e$ le#ally o *hy$"&ally "!*o$$"'le /"thout the %ault o% the o'l"#o. et"t"one &annot, ho/ee, $u&&e$$%ully tae e%u#e "n the $a"- at"&le, $"n&e "t "$ a**l"&a'le only to o'l"#at"on$ to -o, an- not o'l"#at"on$ to #"e. An o'l"#at"on to -o "n&lu-e$ all "n-$ o% /o o $e"&e /h"le an o'l"#at"on to #"e "$ a *e$tat"on /h"&h &on$"$t$ "n the -el"ey o% a !oa'le o an "!!oa'le th"n# "n o-e to &eate a eal "#ht, o %o the u$e o% the e&"*"ent, o %o "t$ $"!*le *o$$e$$"on, o "n o-e to etun "t to "t$ o/ne. ;;; ;;; ;;;
In th"$ &a$e, *et"t"one /ant$ th"$ Cout to 'el"ee that the a'u*t &han#e "n the *ol"t"&al &l"!ate o% the &ounty a%te the >SA Reolut"on an- "t$ *oo %"nan&"al &on-"t"on en-ee- the *e%o!an&e o% the lea$e &onta&t "!*a&t"&al an- "n"!"&al to the &o*oate $u"al o% the *et"t"one. h"l"**"ne Nat"onal Con$tu&t"on Co*oat"on e$u$ Cout o% A**eal$, et al., 2(2 SCRA 1)3, at *a#e$ 191@192, $u*a5 The P*et"t"oneQ een %a"le- to a**en- any A%%"-a"t to "t$ O**o$"t"on $ho/"n# ho/ !u&h "t ha- e&e"e%o! "t$ &on$tu&t"on &onta&t$ an- ho/ an- to /ho! the $a"- &olle&t"on$ ha- 'een a**en-e-. The P*et"t"oneQ ha- *e$onal an- $ole no/le-#e o% the a%oe$a"- *at"&ula$ /h"le the Pe$*on-entQ -"- not. In %"ne, /e ule an- $o hol- that the CA -"- not &o!!"t any ee$"'le eo "n a%%"!"n# the $u!!ay u-#!ent en-ee- 'y the t"al &out a$, at 'otto!, thee e;"$te- no #enu"ne "$$ue a$ to any !ate"al %a&t. ?e al$o $u$ta"n the CA$ e-u&t"on "n the a/a- o% attoney$ %ee$ to only 1,000,000.00, #"en the %a&t that thee /a$ no %ull@'lo/n t"al. ?7>R>FOR>, the a$$a"le- CA -e&"$"on "$ AFFIR> "n toto an- th"$ *et"t"on "$ >NI> %o la& o% !e"t. Co$t$ a#a"n$t *et"t"one. SO OR>R>.
