Commercial Law Review Outline 1

COMMERCIAL LAW REVIEW OUTLINE
Dean Nilo T. Divina
I. LETTERS OF CREDIT
1. Definition and Nature of Letter of Credit
- A Financial devise to facilitate commercial transaction
Bank of America vs. Court of Appeals, 228 SCRA 357 (1993)
Prudential Bank and Trust Company vs. IAC, 216 SCRA 257 (1992)
- Security arrangements but not accessory contracts
Feati Bank & Trust Company vs. Court of Appeals, 196 SCRA 576 (1991)
MWSS vs. Hon. Daway, 432 SCRA 559 (2004)
- A composite of at least three distinct but intertwined relationships, each

relationship being concretized in a contract:
Reliance Commodities, Inc. vs. Daewoo Industrial Co., Ltd., 228

SCRA 545 (1993)
- Not a negotiable instrument
Lee vs. Court of Appeals, 375 SCRA 579 (2002)
- Different from trust receipt
Bank of Commerce vs. Serrano, 451 SCRA 484 (2005)
2. Laws governing letter of credit
- Applicability of usage and customs apply in commercial transactions in the

absence of any particular provision in the Code of Commerce
Bank of the Philippine Islands vs. De Reny Fabric Industries, Inc., 35 SCRA 253
(1970)
3. Kinds of letter of credit
a. Commercial and stand by letter of credit
Page 1 of 102

Insular Bank of Asia & America vs. Intermediate Appellate Court, 167 SCRA 450
(1988)
Bank of America vs Court of Appeals 228 SCRA 357
Transfield Philippines, Inc. vs. Luzon Hydro Corp. 443 SCRA 307 (2004)
b. Irrevocable and revocable letter of credit
Philippine Virginia Tobacco Administration vs. De Los Angeles, 164 SCRA 543
(1988)
c. Confirmed and unconfirmed letter of credit
Feati Bank & Trust Company vs. Court of Appeals, 196 SCRA 576 (1991)
4. Parties to a Letter of Credit
a. Rights and Obligations of Parties
i. Applicant
ii. Issuing Bank
iii. Beneficiary
Reliance Commodities, Inc. vs. Daewoo Industrial Co., Ltd., 228 SCRA 545 (1993)
Prudential Bank & Trust Company vs. IAC, 216 SCRA 257 (1992)
Rodzssen Supply Company, Inc. vs. Far East Bank and Trust Company, 357
SCRA 618 (2001)
Abad vs. Court of Appeals, 181 SCRA 191 (1990); Consolidated Bank & Trust
Corporation vs. Court of Appeals, 356 SCRA 671 (2001)
MARPHIL EXPORT CORPORATION and IRENEO LIM, Petitioners, - versus -

ALLIED BANKING CORPORATION, substituted by PHILIPPINE NATIONAL
BANK, Respondent. (G.R. No. 187922, September 21, 2016, THIRD
DIVISION, JARDELEZA, J.)
iv. Advising/Notifying Bank

v. Paying Bank
vi. Confirming Bank
Bank of America vs. Court of Appeals, ibid.

Feati Bank and Trust Company vs. Court of Appeals, ibid.
Page 2 of 102
5. Basic Principles of Letter of Credit
a. Doctrine of Independence
i. In commercial letter of credit
BPI vs. De reny Fabrics, ibid..
Land Bank of the Philippines vs. Monet’s Export and Manufacturing Corp., 453
SCRA 173 (2005)
Philippine National Bank vs. San Miguel Corporation, G.R. No. 186063, January
15, 2014
THE HONGKONG & SHANGHAI BANKING CORPORATION, LIMITED, Petitioner, v.

NATIONAL STEEL CORPORATION AND CITYTRUST BANKING
CORPORATION (NOW BANK OF THE PHILIPPINE ISLANDS),
Respondents. (G.R. No. 183486, February 24, 2016, JARDELEZA, J.)
ii. In Standby letter of credit
Insular Bank of Asia & America vs. Intermediate Appellate Court, 167 SCRA 450
(1988)
b. Fraud Exception Principle
Transfield Philippines, Inc. vs. Luzon Hydro Corp. Ibid.
c. Doctrine of Strict Compliance
Feati Bank & Trust Company vs. Court of Appeals, ibid.
II. Trust Receipts Law
1. Definition/Concept of a Trust Receipt Transaction
a. A security transaction intended to aid in financing importers and

retail dealers who do not have sufficient funds or resources to
finance the importation or purchase of merchandise, and who may
not be able to acquire credit except through utilization, as collateral
of the merchandise imported or purchased.
Lee vs. Court of Appeals, 375 SCRA 579 (2002)

Page 3 of 102
b. The loan and security features of a trust receipt
Vintola vs. Insular Bank of Asia and America, 150 SCRA 140 (1987)
Rosario Textile Mills Corp. vs. Home Bankers Savings and Trust Company, 462
SCRA 88 (2005)
c. The loan should be granted to finance acquisition of the goods

under trust receipt. If loan is granted when entrustee already has
ownership of the goods, transaction only a simple loan
Colinares vs. Court of Appeals, 339 SCRA 609 (2000)

Consolidated Bank & Trust Corp. vs. Court of Appeals, 356 SCRA
671 (2001)
d. The goods must be intended for sale or resale, otherwise, it is a

simple loan
Anthony L. Ng vs. People of the Philippines, G.R. No. 173905, April

23, 2010;
Land Bank of the Philippines vs. Perez, G.R. No. 166884, June 13,
2012;
Hur Tin Yang vs. People of the Philippines, G.R. No. 195117, August 14, 2013
e. No trust receipt, notwithstanding the label, if goods offered as

security for a loan accommodation are goods sold to the debtor
Sps. Dela Cruz vs. Dela Cruz, GR No. 158649, February 18, 2013
f. Failure of the entrustee to remit sale proceeds or return the goods

in case of non-sale constitutes criminal liability
g. Crime against public order
People vs. Hon. Nitafan 207 SCRA 726 (1992)
Compensation shall not be proper when one of the debts consists in civil liability arising
from a penal offense; moreover, any compromise relating to the civil liability
does not automatically extinguish the criminal liability of the accused. The mere
failure of the entrustee to deliver the proceeds of the sale or the goods if not
sold, constitutes a criminal offense that causes prejudice not only to another,
but more to the public interest. Metropolitan Bank & Trust Company vs.
Tonda, 338 SCRA 254 (2000)
Page 4 of 102

2. Ownership of the Goods, Documents and Instruments under a Trust
Receipt
a. Entrustee is the owner of the goods
Vintola vs IBAA, ibid

Rosario Textile Mills vs Home Bankers Trust, ibid.
b. Entrustee can not mortgage the goods under trust receipt
DBP vs. Prudential Bank, 475 SCRA 623 (2005)
3. Rights of the Entruster
a. Validity of the Security Interest as Against the Creditors of the

Entrustee/Innocent Purchaser for Value
Prudential Bank vs. National Labor Relations Commission, 251 SCRA 412 (1995)
4. Obligation and Liability of the Entrustee
a. No criminal liability in the following cases
i. entrustee already owns the goods when loan under TR

granted
Colinares vs Court of Appeals, ibid.

Consolidated vs Court of Appeals, ibid.
ii. goods not intended for sale or resale
Ng vs People, ibid.
Land Bank vs Court of Appeals, ibid.
Hur Ting Yang vs People, ibid.
iii. Non-delivery of the goods
Ramos vs. Court of Appeals, 153 SCRA 276 (1987)
iv. Novation
Ong vs. Court of Appeals, 124 SCRA 578 (1983)
Pilipinas Bank vs. Ong, 387 SCRA 37 (2002)
Page 5 of 102

5. Payment/Delivery of Proceeds of Sale or Disposition of Goods,
Documents or Instrume
6. Return of Goods, Documents or Instruments in Case of Non-Sale
Vintola vs. Insular Bank of Asia and America, ibid
7. Liability for Loss of Goods, Documents or Instruments
Rosario Textile Mills Corp. vs. Home Bankers Savings and Trust Company, ibid.
8. Penal Sanctions if Offender is a Corporation
a. Criminal Liability of directors, officers and agents
Ong vs. Court of Appeals, 401 SCRA 649 (2003)
Ching vs Secretary of Justice
b. Directors and officers of the corporation not civilly liable unless

they assume personal liability
Tupaz IV vs. Court of Appeals, 475 SCRA 398 (2005)
9. Remedies Available
a. Criminal and civil actions
Vintola vs. Insular Bank of Asia and America, ibid
Sarmiento vs. Court of Appeals, 394 SCRA 315 (2002)
b. Entruster’s repossession of the goods under trust receipt not a bar

to foreclosure of mortgage of other collateral
Philippine National Bank vs. Pineda, 197 SCRA 1 (1991)
c. cancellation of trust and repossession of goods
South City Homes, Inc. vs. BA Finance Corporation, 371 SCRA 603 (2001)
d. entrustee liable for deficiency
Landl & Company vs. Metropolitan Bank, 435 SCRA 639 (2004)
Page 6 of 102
III. Warehouse Receipt’s Law
Estrada vs. Court of Agrarian Relations, 2 SCRA 986 (1961)
Consolidated Terminals vs. Artex Development Co., 63 SCRA 46 (1975)
Philippine National Bank vs. Noah’s Ark Sugar Refinery, 226 SCRA 36 (1993)
Philippine National Bank vs. Se. Jr., 256 SCRA 380 (1996)
Philippine Naitonal Bank vs. Sayo, Jr., 292 SCRA 202 (1998)
IV. Banking Laws
A. The New Central Bank Act (R.A. No. 7653)
1. Responsibility and Primary Objective
Perez vs. Monetary Board, 20 SCRA 592 (1967)
Romeo Busuego vs. Court of Appeals, G.R. No. 95326, March 11, 1999
Ana Maria Koruga vs. Teodoro Arcenas, Jr., G.R. No. 168332/ G.R. No. 169053,
June 19, 2009
2. Monetary Board - Powers and Functions
Ana Maria Koruga vs. Teodoro Arcenas, Jr., G.R. No. 168332/G.R. No. 169053,
June 19, 2009
BSP Monetary Board vs. Hon. Antonio-Valenzuela, G.R. No. 184778, October 2,
2009
BANGKO SENTRAL NG PILIPINAS, Petitioner, v. FELICIANO P. LEGASPI,

Respondent.
G.R. No. 205966, March 02, 2016, PERALTA, J.
3. How the BSP handles Banks in Distress
a. Conservatorship
Central Bank of the Philippines vs. Court of Appeals, G.R. No. L-45710 October 3,
1985
Page 7 of 102

Central Bank of the Philippines vs. Court of Appeals, G.R. No. 88353, May 8, 1992
First Philippine International Bank vs. Court of Appeals, G.R. No. 115849, January
24, 1996
b. Closure
Emerito Ramos vs. Central Bank of the Philippines, G.R. No. L-29352, October 4,
1971
Central Bank vs. Court of Appeals, G.R. No. L-50031-32, July 27, 1981
Central Bank of the Philippines vs. Court of Appeals, 139 SCRA 46 (1985)
Lipana vs. Development Bank of Rizal, 154 SCRA 257 (1987)
Overseas Bank of Manila vs. Court of Appeals, G.R. No. L-45866, April 19, 1989
Banco Filipino Savings and Mortgage Bank vs. Central Bank, G.R. No. 70054,
December 11, 1991
Central Bank of the Philippines vs. Court of Appeals, 208 SCRA 652 (1992)
Rural Bank of San Miguel vs. Monetary Board, G.R. No. 150886, February 16, 2007
BSP Monetary Board vs. Hon. Antonio-Valenzuela, G.R. No. 184778, October 2,
2009
SPOUSES JAIME and MATILDE POON vs. PRIME SAVINGS BANK represented by
the PHILIPPINE DEPOSIT INSURANCE CORPORATION as Statutory
Liquidator (G.R. No. 183794, June 13, 2016, SERENO, CJ)
c. Receivership
Central Bank of the Philippines vs. Court of Appeals, G.R. No. L-45710, October 3,
1985
Spouses Romeo Lipana and Milagros Lipana vs. Development Bank of Rizal, G.R.
No. 73884, September 24, 1987
Abacus Real Estate Development Center, Inc.,vs. Manila Banking Corp., G.R. No.
162270, April 06, 2005
Alfeo D. Vivas, vs. Monetary Board and PDIC, G.R. No. 191424, August 7, 2013
Page 8 of 102

d. Liquidation
Apollo M. Salud vs. Central Bank of the Philippines, G.R. No. L-17620, August 19,
1986
Banco Filipino Savings and Mortgage Bank vs. Central Bank, G.R. No. 70054,
December 11, 1991
Jerry Ong vs. Court of Appeals, G.R. No. 112830, February 1, 1996
Domingo Manalo vs. Court of Appeals, G.R. No. 141297, October 8, 2001
Rural Bank of Sta. Catalina vs. Land Bank of the Philippines, G.R. No. 148019,
July 26, 2004
Leticia G. Miranda vs. Philippine Deposit Insurance Corporation, G.R. No. 169334,
September 8, 2006
In Re : Petition for Assistance in the Liquidation in the Rural Bank of Bokod

(Benguet), PDIC vs. Bureau of Internal Revenue, 511 SCRA 123 (2006)
Cu v. Small Business Guarantee and Finance Corp., G.R. No. 211222, August 7,
2017, Justice Caguioa New Central Bank Act, Liquidation of Banks
APEX BANCRIGHTS HOLDINGS, INC., LEAD BANCFUND HOLDINGS, et al., v.

BANGKO SENTRAL NG PILIPINAS and PHILIPPINE DEPOSIT
INSURANCE CORPORATION, G.R. No. 214866, October 2, 2017,
Second Division, PERLAS-BERNABE, J.
B. Law on Secrecy of Bank Deposits (R.A. No. 1405, as amended)
1. Purpose
BSB Group, Inc. vs. Sally Go, G.R. No. 168644, February 16, 2010
2. Prohibited Acts
Oñate vs. Abrogar, G.R. No. 107303, February 23, 1995
Philippine Commercial International Bank vs. Court of Appeals, 255 SCRA 299
(1996)
Union Bank of the Philippines vs. Court of Appeals, G.R. No. 134699, December
23, 1999
Page 9 of 102

3. Deposits Covered
Intengan vs. Court of Appeals, G.R. No. 128996, February 15, 2002
Ejercito vs. Sandiganbayan, G.R. Nos. 157294-95, November 30, 2006
4. Exceptions
PNB vs. Gancayco, 15 SCRA 91 (1965); Banco Filipino Saving and Mortgage Bank
vs. Purisima, 161 SCRA 576 (1988)
RCBC vs. De Castro, G.R. No. L-34548, November 29, 1988
Mellon Bank, N.A. vs. Magsino, G.R. No. 71479, October 18, 1990
PCIB vs. Court of Appeals, G.R. No. 84526, January 28, 1991
Van Twest vs. Court of Appeals, 230 SCRA 42 (1994)
Marquez vs. Desierto, G.R. No. 135882, June 27, 2001; Office of the Ombudsman
vs. Ibay, G. R. No. 137538, September 3, 2001
China Bank Corporation vs. Court of Appeals 511 SCRA 110 (2006)
BSB Group, Inc.,vs. Sally Go, G.R. No. 168644, February 16, 2010
Rizal Commercial Banking Corporation vs. Hi-Tri Development Corporation, 672

SCRA 514 (2012)
Dona Adela Export International Inc., vs. Trade and Investment Development
Corporation and the Bank of the Philippine Islands, G.R. No. 201931,
February 11, 2015
5. Garnishment of Deposits, Including Foreign Deposits
De la Rama vs. Villarosa, 8 SCRA 413 (1963)
PCIB vs. Court of Appeals, G.R. No. 84526, January 28, 1991
Salvacion vs. Central Bank of the Philippines, G.R. No. 94723, August 21, 1997
C. General Banking Law of 2000 (R.A. No. 8791)
Page 10 of 102

WHITE MARKETING DEVELOPMENT CORPORATION, Petitioner, - versus -
GRANDWOOD FURNITURE & WOODWORK, INC., Respondent. (G.R. No.
222407, SECOND DIVISION, November 23, 2016, MENDOZA, J.)
1. Definition and Classification of Banks
Republic of the Philippines vs. Security Credit and Acceptance Corporation, G.R.
No. L-20583, January 23, 1967
2. Distinction of Banks from Quasi-Banks and Trust Entities
Teodoro Bañas vs. Asia Pacific Finance Corporation, G.R. No. 128703, October
18, 2000
First Planters Pawnshop, Inc.,vs. Commissioner of Internal Revenue, G.R. No.

174134, July 30, 2008
3. Bank Powers and Liabilities
a. Corporate Powers
Register of Deeds of Manila vs. China Banking Corporation, 4 SCRA 1145 (1962)
Banco de Oro-EPCI, Inc. vs. JAPRL Development Corporation, G.R. No. 179901,
April 14, 2008
b. Banking and Incidental Powers
Spouses Raul and Amalia Panlilio vs. Citibank, N.A., G.R. No. 156335, November
28, 2007
4. Diligence Required of Banks—Relevant Jurisprudence
Pacific Bank vs. Hart, 173 SCRA 102 (1989)
Simex International (Manila) Inc. vs. Court of Appeals, 183 SCRA 360 (1990)
Luzan Sia vs. Court of Appeals, G.R. No. 102970, May 13, 1993

Gregorio Reyes vs. Court of Appeals, G.R. No. 118492, August 15, 2001
Consolidated Bank and Trust Corporation vs. Court of Appeals, G.R. No. 138569,
September 11, 2003
Page 11 of 102

Citibank, N.A. vs. Spouses Luis & Carmelita Cabamongan, G.R. No. 146918, May
2, 2006
Philippine Savings Bank vs. Chowking Food Corporation, G.R. No. 177526, July 4,
2008
Philippine National Bank vs. Erlando T. Rodriguez, et. al., G.R. No. 170325,
September 26, 2008
Central Bank of the Philippines vs. Citytrust Banking Corporation, G.R. No.
141835, February 4, 2009
Central Bank of the Philippines vs. Citytrust Banking Corporation, 578 SCRA 27
(2009)
Bank of America, NT and SA vs. Associated Citizens Bank, G.R. No. 141018, May
21, 2009
Equitable PCI Bank vs. Arcelito B. Tan, G.R. No. 165339, August 23, 2010
Comsavings Bank vs. Spouses Danilo and Estrella Capistrano, G.R. No. 170942,
August 28, 2013
Land Bank of the Philippines vs. Emmanuel Oñate, G.R. No. 192371, January 15,
2014
Development Bank of the Philippines vs. Guariña Agricultural and Realty

Development Corporation, G.R. No. 160758, January 15, 2014
DRA. MERCEDES OLIVER, Petitioner, v. PHILIPPINE SAVINGS BANK AND LILIA

CASTRO,Respondents. (G.R. No. 214567, April 04, 2016, MENDOZA, J.)
LAND BANK OF THE PHILIPPINES vs. NARCISO L. KHO (G.R. No. 205839)
MA. LORENA FLORES and ALEXANDER CRUZ vs. NARCISO L. KHO (G.R. No.
205840, July 7, 2016, BRION, J.)
ANNA MARIE L. GUMABON vs. PHILIPPINE NATIONAL BANK (G.R. No. 202514,
July 25, 2016, BRION, J.)
PHILIPPINE NATIONAL BANK vs. JUAN F. VILA (G.R. No. 213241, August 1, 2016,
PEREZ,J)
Page 12 of 102

PHILIPPINE NATIONAL BANK, Petitioner, -versus- PABLO V. RAYMUNDO,
Respondents. (G.R. No. 208672, THIRD DIVISION, December 7, 2016,
PERALTA, J.)
SPOUSES CRISTINO and EDNA CARBONELL v. METROPOLITAN BANK and

TRUST COMPANY, G.R. No. 178467, April 26, 2017, Third Division,
BERSAMIN, J.
5. Nature of Bank Funds and Bank Deposits
Consolidated Bank and Trust Corporation vs. Court of Appeals, G.R. No. 138569,
September 11, 2003
Suan vs. Gonzales, 518 SCRA 82 (2007)
6. Stipulation on Interests
Fidelity Savings and Mortgage Bank vs. Hon. Pedro Cenzon, G.R. No. L-46208,
April 5, 1990
Ileana Macalinao vs. Bank of the Philippine Islands, G.R. No. 175490, September
17, 2009
Heirs of Estelita Burgos-Lipat namely: Alan B. Lipat and Alfredo B. Lipat, Jr. vs.
Heirs of Eugenio D. Trinidad namely: Asuncion R. Trinidad, et. al., G.R.
No. 185644, March 2, 2010
Asia Trust Development Bank vs. Carmelo H. Tuble, G.R. No. 183987, July 25,
2012
Advocates for Truth in Lending vs. BSP, G.R. No. 192986, January 15, 2013
7. Grant of Loans and Security Requirements
a. Single Borrower’s Limit
b. Restrictions on Bank Exposure to DOSRI (Directors, Officers,

Stockholders and their Related Interests
Banco de Oro vs. Bayuga, 93 SCRA 443 (1979)
People vs. Jalandoni, 122 SCRA 588 (1983)
Jose C. Go vs. BSP, G.R. No. 178429, October 23, 2009
Page 13 of 102

Jose C. Go vs. BSP, G.R. No. 178429, October 23, 2009
Hilario P. Soriano vs. People of the Philippines, et. al., G.R. No. 162336, February
1, 2010
Republic of the Philippines vs. Sandiganbayan, et. al., G.R. No. 166859/G.R. No.
169203/G.R. No. 180702, April 12, 2011
Philippine Amanah Bank (Now Al-Amanah Islamic Investment Bank of the

Philippines, also known as Islamic Bank) vs. Evangelista Contreras,
G.R. No. 173168, September 29, 2014
D. Miscellaneous Topics
1. Philippine Deposit Insurance Corporation
Philippine Deposit Insurance Corporation vs. Court of Appeals, 283 SCRA 462.
1998
PDIC vs. Court of Appeals, 402 SCRA 194 (2003)
2. Truth in Lending
Consolidated Bank and Trust Company vs. Court of Appeals, 246 SCRA 193
(1995)
Section 1 of R.A. No. 3765 provides that prior to the consummation of a loan
transaction, the bank, as creditor, is obliged to furnish a client with a clear
statement, in writing, setting forth, to the extent applicable and in accordance
with the rules and regulations prescribed by the Monetary Board of the
Central Bank of the Philippines, the following information:
1. The cash price or delivered price of the property or service to be acquired;

2. The amounts, if any, to be credited as down payment and/or trade-in;
3. The difference between the amounts set forth under clauses 1 and 2;
4. The charges, individually itemized which are paid or to be paid by such
person in connection with the transaction but which are not incident to the
extension of credit;
5. The total amount to be financed;
6. The finance charges expressed in terms of pesos and centavos;
7. The percentage that the finance charge bears to the total amount to be
financed expressed as a simple annual rate on the outstanding unpaid
balance of the obligation.
Development Bank of the Philippines vs. Arcilla Jr., 462 SCRA 599 (2005)
Page 14 of 102
UCPB vs. Spouses Beluso, 530 SCRA 567 (2007)
Spouses Eduardo and Lydia Silos vs. Philippine National Bank, G.R. No. 181945,
July 2, 2014
3. Anti-Money Laundering Act (R.A. No. 9160, as amended)
a. Unlawful Activities or Predicate Crimes
Republic of the Philippines vs. Glasgow Credit and Collection Services, Inc., G.R.
No. 170281, January 18, 2008
Republic of the Philippines vs. Hon. Antonio Eugenio, G.R. No. 174629, February
14, 2008
REPUBLIC OF THE PHILIPPINES, represented by the ANTI-MONEY LAUNDERING

COUNCIL v.JOCELYN I. BOLANTE, OWEN VINCENT D. BOLANTE, MA.
CAROL D. BOLANTE, ALEJO LAMERA, CARMEN LAMERA, EDNA
CONSTANTINO, ARIEL C. PANGANIBAN, KATHERINE G. BOMBEO,
SAMUEL S. BOMBEO, MOLUGAN FOUNDATION, SAMUEL G. BOMBEO,
JR., and NATIONAL LIVELIHOOD DEVELOPMENT CORPORATION
(Formerly Livelihood Corporation), G.R. No. 186717, April 17, 2017, First
Division, SERENO, CJ.
b. Freezing of Monetary Instrument or Property
Republic of the Philippines vs. Cabrini Green & Ross, Inc., G.R. No. 154522, May
5, 2006
Ret. Lt. Gen. Jacinto Ligot, et. al. vs. Republic of the Philippines, G.R. No. 176944,
March 6, 2013
SUBIDO PAGENTE CERTEZA MENDOZA and BINAY LAW OFFICES, Petitioner, -

versus - THE COURT OF APPEALS, HON. ANDRES B. REYES, JR., in his
capacity as Presiding Justice of the Court of Appeals, and the
ANTI-MONEY LAUNDERING COUNCIL, represented by its members,
HON. AMANDO M. TETANGCO, JR., Governor of the BANGKO SENTRAL
NG PILIPINAS, HON. TERESITA J. HERBOSA, Chairperson of the
Securities and Exchange Commission, and HON. EMMANUEL F. DOOC,
Insurance Commissioner of the Insurance Commission. Respondents.
(G.R. No. 216914, EN BANC, December 6, 2016, PEREZ,J.)
V. The Corporation Code

Page 15 of 102
A. Corporation
1. Definition
A corporation is an artificial being created by operation of law, having the right of

succession and the powers, attributes and properties expressly authorized by
law or incident to its existence.
2. Attributes of the Corporation
Benny Hung vs. BPI Finance Corporation, G.R. No. 182398, July 20, 2010

Rebecca Boyer-Roxas and Guillermo Roxas vs. Hon. Court of Appeals and Heirs
of Eugenia V. Roxas, Inc., G.R. No. 100866, July 14, 1992
Ryuichi Yamamoto vs. Nishino Leather Industries, Inc. and Ikuo Nishino, G.R. No.
150283, April 16, 2008
B. Classes of Corporations
Pioneer Surety & Insurance Corporation vs. Court of Appeal, 175 SCRA 668 (1989)
1. Corporation by estoppel
Reynaldo M. Lozano vs. Hon. Eliezer R. De los Santos, Presiding Judge, RTC, Br.
58, Angeles City; and Antonio Anda, G.R. No. 125221, June 19, 1997
Reynaldo M. Lozano vs. Hon. Eliezer R. De los Santos, Presiding Judge, RTC, Br.
58, Angeles City; and Antonio Anda, G.R. No. 125221, June 19, 1997
Lim Tong Lim vs. Philippine Fishing Gear Industries, Inc., G.R. No. 136448,
November 3, 1999
International Express Travel & Tour Services, Inc. vs. Hon. Court of Appeals,
Henri Kahn, Philippine Football Federation, G.R. No. 119002, October
19, 2000
People of the Philippines vs. Engr. Carlos Garcia y Pineda, Patricio Botero y
Vales, Luisa Miraples (at large) & Patricio Botero y Vales, G.R. No.
117010, April 18, 1997
Macasaet vs. Francisco, G.R. No. 156759, June 5, 2013
a. De facto corporation
Page 16 of 102
Sappari K. Sawadjaanvs. the Honorable Court of Appeals, the Civil
Service Commission and Al-amanah Investment Bank of the
Philippines, G.R. No. 141735, June 8, 2005
b. Government corporation
Baluyot vs. Holganza, 325 SCRA 248 (2000)
Feliciano vs. Commission on Audit, 464 Philippine 439 (2004)
Boy Scouts of the Philippines vs. Commission on Audit, G.R. No. 177131, June 7,
2011
Liban vs. Gordon, GR No. 175352, January 10, 2011
Carandang vs. Desierto, G.R. No. 148076, January 12, 2011
Funa vs. Manila Economic and Cultural Office, GR. No. 193462, February 4, 2014
C. Nationality of Corporations
1. Place of Incorporation Test
Filipinas Compañia De Seguros vs. Christern, Huenefeld and Co., Inc., G.R. No.
L-2294, May 25, 1951
2. Control Test
ROY III vs. HERBOSA, G.R. No. 207246, Novmber 22, 2016, EN BANC, CAGUIOA,
J.
Marissa R. Unchuan vs. Antonio J.P. Lozada, Anita Lozada and the Register of
Deeds of Cebu City, G.R. No. 172671, April 16, 2009
Register of Deeds vs. Ung Sui Si Temple, G.R. No. L-6776, May 21, 1955
3. Grandfather Rule
Narra Nickel Mining and Development Corporation, et al., vs. Redmont

Consolidated Mines Corporation, G.R. No. 199580, April 21, 2014
Narra Nickel Mining and Development Corporation, et al. vs. Redmont

Consolidated Mines Corporation, G.R. No. 199580, January 28, 2015
Page 17 of 102

D. Corporate Juridical Personality
1. Doctrine of Separate Juridical Personality
Palay, Inc. vs. Clave, 124 SCRA 638 (1983)
Cruz vs. Dalisay, 152 SCRA 482 (1987)
Remo vs. Intermediate Appellate Court, 172 SCRA 405 (1989)
Pabalan vs. National Labor Relations Commission, 184 SCRA 495 (1990)
Umali vs. Court of Appeals, 189 SCRA 529 (1990)
Indophil Textile Mill Workers Union PTGWO vs. Calica, 205 SCRA 697 (1992)
EPG Construction Company, Inc. vs. Court of Appeals, 210 SCRA 230 (1992)
Boyer Roxas vs. Court of Appeals, 211 SCRA 470 (1992)
Sesbreno vs. Court of Appeals, 222 SCRA 466 (1993)
Robledo vs. National Labor Relations Commission, 238 SCRA 52 (1994)
Laguio vs. National Labor Relations Commission, 262 SCRA 709 (1996)
Matuguina Wood Products, Inc. vs. Court of Appeals, 263 SCRA 490 (1996)
Republic vs. Sandiganbayan, 266 SCRA 515 (1997)
Traders Royal Bank vs. Court of Appeals, 269 SCRA 15 (1997)
Union Bank of the Philippines vs. Court of Appeals, 290 SCRA 198 (1998)
Asionics Philippines, Inc. vs. National Labor Relations Commission, 290 SCRA
164 (1998)
Francisco Motors Corporation vs. Court of Appeals, 309 SCRA 72 (1999)
Complex Electronics Employees Association vs. National Labor Relations

Commission, 310 SCRA 403 (1999)
Lim vs. CA, 323 SCRA 102 (2000)
Page 18 of 102

Presidential Commission in Good Government vs. Sandiganbayan, 290 SCRA 639
(1998); Presidential Commission on Good Government vs.
Sandiganbayan, 365 SCRA 538 (2001)
Marubeni Corporation vs. Lirag, 362 SCRA 620 (2001)
Land Bank of the Philippines vs. Court of Appeals, 364 SCRA 375 (2001)
PNB vs. Ritratto Group, Inc., 362 SCRA 216 (2001)
Ricardo S. Silverio, Jr., Esses Development Corporation, and Tri-Star Farms, Inc.
vs. Filipino Business Consultants, Inc., G.R. No. 143312, August 12, 2005)
Jardine Davis, Inc. vs. JRB Realty, Inc., 463 SCRA 555 (2005)
China Banking Corporation vs. Dyne-Sem Electronics Corporation 494 SCRA 493
(2006)
Spouses Ramon Nisce vs. Equitable PCI Bank 516 SCRA 231 (2007)
Pasricha vs. Don Luis Dison Realty, Inc., 548 SCRA 273 (2008)
Ryuichi Yamamoto vs. Nishino Leather Industries, Inc. and Ikuo Nishino 551
SCRA 447 (2008)
Virgilio S. Delima vs. Susan Mercaida Gois 554 SCRA 731 (2008)
Seaoil Petroleum Corporation vs. Autocorp Group, et al., 569 SCRA 387 (2008)
Excellent Quality Apparel, Inc. vs. Win Multi-Rich Builders, Inc., 578 SCRA 272
(2009)
PEA-PTGWO vs. NLRC 581 SCRA 598 (2009)
Philippine National Bank vs. Merelo B. Aznar, G.R. No. 171805, May 30, 2011
Stronghold Insurance Company, Inc. vs. Tomas Cuenca, et. al., G.R. No. 173297,
March 6, 2013
Rolando DS. Torres vs. Rural Bank of San Juan, Inc., et al., G.R. No. 184520,
March 13, 2013
Mercy Vda. de Roxas, represented by Arlene C. Roxas-Cruz, in her capacity as

substitute appellant-petitioner vs. Our Lady's Foundation, Inc., G.R. No.
182378, March 6, 2013
Page 19 of 102
Development Bank of the Philippines vs. Hydro Resources Contractors
Corporation, GR. No. 167603, March 13, 2013
Abbot Laboratories vs. Alacaraz, G.R. No. 192571, July 23, 2013
Nuccio Saverios vs. Puyat, G.R. No. 186433, November 27, 2013
Commissioner of Customs vs. Oilink International Corporation, G.R. 161759, July

2, 2014
Girly G. Ico vs. Systems Technology Institute Inc, et al., G.R. 185100, July 9, 2014
Palm Avenue Holding Co., Inc and Palm Avenue Realty and Development
Corporation vs. Sandiganbayan, G.R. No. 173082, August 6, 2014
Olongapo City vs. Subic Water and Sewerage Co., Inc., G.R. No. 171626, August 6,
2014
Gerardo Lanuza Jr. and Antonio O. Olbes vs. BF Corporation, et al., G.R. No.
17438, October 1, 2014
FVR Skills and Services Exponents, Inc., et al. vs. Jovert Seva et al., G.R. No.
200857, October 22, 2014
a. Liability for Torts and Crimes
Philippine National Bank vs. Court of Appeals, et al., G.R. No. L-27155, May 18,
1978
Sergio F. Naguiat, doing business under the name and style Sergio F. Naguiat
Ent., Inc., & Clark Field Taxi, Inc. vs. National Labor Relations
Commission (Third Division), National Organization Of Workingmen
and its members, Leonardo T. Galang, et al., G.R. No. 116123, March
13, 1997
Gregorio Singian, Jr. vs. the Honorable Sandiganbayan and the Presidential
Commission on Good Government, G.R. Nos. 160577-94, December 16,
2005
The Executive Secretary, et al. vs. Court of Appeals, et al., G.R. No. 131719, May
25, 2004
Edward C. Ong vs. the Court of Appeals and the People of the Philippines, G.R.
No. 119858, April 29, 2003
Page 20 of 102
Alfredo Ching vs. the Secretary of Justice, et al., G. R. No. 164317, February 6,
2006
b. Recovery of Moral Damages
Simex International, Incorporated vs. Court of Appeals, G.R. No. 88013, March 19,
1990
ABS-CBN Broadcasting vs. Court of Appeals, 301 SCRA 342 (1999)
Jardine Davies, Inc. vs. Court of Appeals and Far East Mills Supply Corporation,
G.R. No. 128066, June 19, 2000
National Power Corporation vs. Philipp Brothers Oceanic, Inc., 369 SCRA 629
(2001)
Filipinas Broadcasting Network, Inc.,vs. AGO Medical And Educational

Center-Bicol Christian College of Medicine, (AMEC-BCCM) and
Angelita F. Ago, G.R. No. 141994, January 17, 2005
Manila Electric Company vs. T.E.A.M. Electronics Corporation, Technology

Electronics Assembly and Management Pacific Corporation; and Ultra
Electronics Instruments, Inc., G.R. No. 131723, December 13, 2007
Herman C. Crystal, et al. vs. Bank of the Philippine Islands, G.R. No. 172428,
November 28, 2008
2. Doctrine of Piercing the Corporate Veil
Kukan International Corporation vs. Hon. Judge Amor Reyes, G.R. No. 182729,
September 29, 2010
Gold Line Tours vs. Heirs of Maria Concepcion Lacsa, GR No. 159108, June 18,
2012
Prince Transport, Inc. vs. Garcia, G.R. No. 167291, January 12, 2011
Park Hotel vs. Soriano, G.R. No. 171118, September 10, 2012
Pacific Rehouse Corporation vs. Court of Appeals, G.R. No. 199687, March 24,
2014
REPUBLIC OF THE PHILIPPINES, Petitioner, - versus - MEGA PACIFIC

eSOLUTIONS, INC., WILLY U. YU, BONNIE S. YU, ENRIQUE T. TANSIPEK,
Page 21 of 102
ROSITA Y. TANSIPEK, PEDRO O. TAN, JOHNSON W. FONG, BERNARD I.
FONG, and LAURIANO A. BARRIOS, Respondents. (G.R. No. 184666, June
27, 2016, FIRST DIVISION, SERENO, CJ)
ERSON ANG LEE DOING BUSINESS as "SUPER LAMINATION SERVICES,"

Petitioner, - versus - SAMAHANG MANGGAGA WA NG SUPER
LAMINATION (SMSLSNAFLU-KMU), Respondent. (G.R. No. 193816, First
Division, November 21, 2016, SERENO, CJ)
MANUELA AZUCENA MAYOR, Petitioner, - versus - EDWIN TIU and DAMIANA

CHARITO MARTY, Respondents. (G.R. No. 203770, SECOND DIVISION,
November 23, 2016, MENDOZA, J.)
REYNO C. DIMSON, Petitioner, - versus - GERRY T. CHUA, Respondent. (G.R. No.

192318, THIRD DIVISION, December 5, 2016, REYES, J.)
a. Grounds for Application of Doctrine
Villa Rey Transit, Inc. vs. Eusebio E. Ferrer, Pangasinan Transportation Co.,
Inc.,and Public Service Commission, G.R. No. L-23893, October 29,
1968
A.C. Ransom Labor Union-CCLU vs. National Labor Relations Commission, et al.,
G.R. No. L-69494, May 29, 1987
Indino vs. National Labors Relations Commission, 178 SCRA 168 (1989)
Indophil Textile Mill Workers Union-PTGWO vs. Voluntary Arbitrator Teodorico P.

Calica and Indophil Textile Mills, Inc., G.R. No. 96490, February 3, 1992
Shoemart, Inc. vs. National Labor Relations Commission, 225 SCRA 311 (1993)
Manuel R. Dulay Enterprises, Inc. vs. Court of Appeals, 225 SCRA 678 (1993)
Guatson International Travel & Tours, Inc. vs. National Labor Relations
Commission, 230 SCRA 815 (1994)
First Philippine International Bank vs. Court of Appeals, 252 SCRA 259 (1996)
Tomas Lao Construction vs. National Labor Relations Commission, 278 SCRA
716 (1997)
Bibiano O. Reynoso, IV vs. Hon. Court of Appeals and General Credit

Corporation, G.R. Nos. 116124-25, November 22, 2000
Page 22 of 102

Lipat vs. Pacific Banking Corp., 402 SCRA 339 (2003)
Times Transportation Company, Inc. vs. Santos Sotelo, et al., G.R. No. 163786,
February 16, 2005
Mavest (USA) Inc. vs. Sampaguita Garment Corporation 470 SCRA 440 (2005)
Pamplona Plantation Company, Inc. vs. Tinghil, 450 SCRA 421 (2005)
Apex Mining Co., Inc. vs. Southeast Mindanao Gold Mining Corp., 492 SCRA 355
(2006)
GCC vs. Alsons Development and Investment Corporation 513 SCRA 225 (2007)
Sta. Monica Industrial and Development Corporation vs. The Department of

Agrarian Reform Regional Director For Region III, et al., 555 SCRA 97
(2008)
Sps. Pedro and Florencia Violago vs. BA Finance Corporation and Avelino
Violago, 559 SCRA 69 (2008)
Claude P. Bautista vs. Auto Plus Traders Inc., 561 SCRA 223 (2008)
Lucia Magaling, et al. vs. Peter Ong 562 SCRA 152 (2008)
Siain Enterprises, Inc., vs. Cupertino Realty Corporation, Inc.,et. al. 590 SCRA 435
(2009)
Livesey vs. Binswanger Philippines, G.R. No. 177493, March 19, 2014
Arco Pulp and Paper Co., Inc., and Candida Santos vs. Dan T. Lim, doing
business under the name and style of Quality Papers & Plastics
Products Enterprises, G.R. No. 206806, June 25, 2014
WPM International Trading Inc., and Warlito Manlapaz vs. Fe Corazon Labayen,
G.R. No. 182770, September 17, 2014
Hacienda Cataywa/Manuel Villanueva vs. Rosario Lorenzo, G.R. No. 179640,

March 18, 2015
DUTCH MOVERS, INC., CESAR LEE and YOLANDA LEE v. EDILBERTO LEQUIN,
CHRISTOPHER R. SALVADOR, REYNALDO L. SINGSING, and RAFFY
B. MASCARDO, G.R. No. 210032, April 25, 2017, First Division, DEL
CASTILLO, J.
Page 23 of 102

ROMMEL M. ZAMBRANO, et. Al v. PHILIPPINE CARPET MANUFACTURING
CORPORATION/ PACIFIC CARPET MANUFACTURING CORPORATION,
et al. (G.R. No. 224099, June 21, 2017, MENDOZA, J.)
b. Test in Determining Applicability
Concept Builders, Inc., vs. the National Labor Relations Commission, et al., G.R.
No. 108734, May 29, 1996
Heirs of Fe Tan Uy, represented by her heir, Mauling Uy Lim vs. International
Exchange Bank, G.R. No. 166282 & 83, February 13, 2013
Development Bank of the Philippines vs. Hydro Resources Contractors

Corporation, GR. No. 167603, March 13, 2013
CALIFORNIA MANUFACTURING COMPANY, INC. v. ADVANCED TECHNOLOGY

SYSTEM, INC., G.R. No. 202454, April 25, 2017, First Division, SERENO,
C.J.
LUIS JUAN VIRATA v. ALEJANDRO NG WEE, G.R. Nos. 220926, 221058, 221109,
221135 & 221218, July 5, 2017, Third Division, VELASCO, Jr. J.
VETERANS FEDERATION of the PHILIPPINES v. EDUARDO L. MONTENEJO, et

al., G.R. No. 184819, November 29, 2017, Third Division, VELASCO, Jr.,
J.
INTERNATIONAL ACADEMY of MANAGEMENT and ECONOMICS (I/AME) LITTON

and COMPANY, INC. v. LITTON and COMPANY, INC., G.R. No. 191525,
December 13, 2017, First Division, SERENO, C.J.
E. Incorporation and Organization
Mariano A. Albert vs. University Publishing Co., Inc., G.R. No. L-19118, January
30, 1965
MISCI-NACUSIP Local Chapter vs. National Wages and Productivity Commission,

269 SCRA 173 (1997)
Islamic Directorate of the Philippines vs. Court of Appeals, 272 SCRA 454 (1997)
International Express Travel & Tour Services, Inc. vs. Hon. Court of Appeals,
Henri Kahn, Philippine Football Federation, G.R. No. 119002, October 19,
2000
Page 24 of 102

Samahanng Optometrists saPilipinas, Ilocos Sur-Abra Chapter, et al. vs. Acebedo
International Corporation and the Hon. Court of Appeals, G.R. No. 117097,
March 21, 1997
1. Promoter
a. Liability of Corporation for Promoter’s Contracts
Rizal Light & Ice Co., Inc. vs. the Municipality of Morong, Rizal and the Public
Service Commission,G.R. No. L-20993, September 28, 1968
2. Number and Qualifications of Incorporators
Nautica Canning Corporation, et al. vs. Roberto C. Yumul, G.R. No. 164588,
October 19, 2005
3. Corporate Name — Limitations on Use of Corporate Name
Republic Planters Bank vs. Court of Appeals, G.R. No. 93073, December 21, 1992
Universal Mills Corporation vs. Universal Textile Mills, Inc., 78 SCRA 62
GSIS Family Bank-Thrift Bank vs. BPI Family Bank, G.R. No. 175278,
September 23, 2015
Lyceum of the Philippines vs. Court of Appeals, 219 SCRA 610
P.C. Javier & Sons, Inc., et al. vs. Paic Savings & Mortgage Bank, Inc., et al., G.R.
No. 129552, June 29, 2005
Industrial Refractories Corporation of the Philippines vs. Court of Appeals,

Securities and Exchange Commission and Refractories Corporation of
the Philippines, G.R. No. 122174, October 3, 2002
P.C. Javier & Sons, Inc., et al. vs.Paic Savings & Mortgage Bank, Inc., et al., G.R.
No. 129552, June 29, 2005
Zuellig Freight and Cargo Systems vs. National Labor Relations Commission, et
al., G.R. No. 157900, July 22, 2013
INDIAN CHAMBER OF COMMERCE PHILS., INC. vs. FILIPINO INDIAN CHAMBER

OF COMMERCE IN THE PHILIPPINES, INC. (G .R. No. 184008, August 3,
2016, JARDELEZA, J.)
4. Corporate Term
Page 25 of 102
Philippine National Bank vs. Court of First Instance of Rizal, Pasig, et al., G.R. No.
63201, May 27, 1992
5. Minimum Capital Stock and Subscription Requirements
MSCI-NACUSIP Local Chapter vs. National Wages and Productivity Commission

and Monomer Sugar Central, Inc., G.R. No. 125198, March 3, 1997
Wilson P. Gamboa vs. Finance Secretary Margarito B. Teves, et al., G.R. No.
176579, June 28, 2011
Heirs of Wilson P. Gamboa vs. Finance Secretary Margarito B. Teves, et al., G.R.
No. 176579, October 9, 2012
6. Articles of Incorporation
a. Nature and Function of Articles
Alicia E. Gala, et al. vs. Ellice Agro-Industrial Corporation, et al., G.R. No. 156819,
December 11, 2003
b. Contents
Clavecillia Radio System vs. Hon. Agustin Antillon, as City Judge of the Municipal
Court of Cagayan de Oro City and New Cagayan Grocery, G.R. No.
L-22238, February 18, 1967
Hyatt Elevators and Escalators Corporation vs. Goldstar Elevators Phils. Inc.,
G.R. No. 161026, October 24, 2005
c. Amendment
Marsh Thomson vs. Court of Appeals and the American Champer of Commerce of
the Philippines, Inc,, G.R. No. 116631, October 28, 1998
7. Registration and Issuance of Certificate of Incorporation
8. Adoption of By-Laws
a. Nature and Functions of By-Laws
John Gokongwei, Jr. vs. Securities and Exchange Commission, et al., G.R. No.
L-45911, April 11, 1979
Page 26 of 102

Citibank, N.A. vs. Hon. Segundino G. Chua, et al., G.R. No. 102300, March 17, 1993
Citibank, N.A. vs. Hon. Segundino G. Chua, et al., G.R. No. 102300, March 17, 1993
Loyola Grand Villas Homeowners (South) Association, Inc. vs. Hon. Court of
Appeals, Home Insurance And Guaranty Corporation, Emden
Encarnacion and Horatio Aycardo, G.R. No. 117188, August 7, 1997
China Banking Corporation vs. Court of Appeals, 270 SCRA 503 (1997)
Matling Industrial and Commercial Corporation, et al. vs. Ricardo R. Coros, G.R.
No. 157802, October 13, 2010
Forest Hills Golf and Country Club Inc. vs. Gardpro Inc., G.R. No. 164686, October
22, 2014
b. Requisites of Valid By-Laws
Grace Christian High School vs. Court Of Appeals, Grace Village Association,
Inc., Alejandro G. Beltran, and Ernesto L. Go, G.R. No. 108905, October
23, 1997
the Philippines, Inc., G.R. No. 116631, October 28, 1998
c. Binding Effects
China Banking Corporation vs. Court of Appeals, and Valley Golf and Country
Club, Inc., G.R. No. 117604, March 26, 1997
PMI Colleges vs. the National Labor Relations Commission and Alejandro Galvan,
G.R. No. 121466, August 15, 1997
CATHERINE CHING, LORENZO CHING, LAURENCE CHING, AND CHRISTINE

CHING, Petitioners, - versus - QUEZON CITY SPORTS CLUB, INC.;
MEMBERS OF THE BOARD OF DIRECTORS, NAMELY: ANTONIO T.
CHUA, MARGARET MARY A. RODAS, ALEJANDRO G. YABUT, JR.,
ROBERT C. GAW, EDGARDO A. HO, ROMULO D. SALES, BIENVENIDO
ALANO, AUGUSTO E. OROSA, AND THE FINANCE MANAGER,
LOURDES RUTH M. LOPEZ, Respondents. (G.R. No. 200150, November
7, 2016, FIRST DIVISION, LEONARDO-DE CASTRO, J.)
d. Amendment or Revision
Page 27 of 102

Cebu Country Club, Inc., et al. vs. Ricardo F. Elizagaque, G.R. No. 160273,
January 18, 2008
F. Corporate Powers
1. General Powers, Theory of General Capacity
National Power Corporation vs. Honorable Abraham P. Vera, Presiding Judge,

Regional Trial Court, National Capital Judicial Region, Branch 90, Quezon
City and Sea Lion International Port Terminal Services, Inc., G.R. No.
83558, February 27, 1989
Aurbach vs. Sanitary Wares Manufacturing Corporation, 180 SCRA 130 (1989)
WolrgangAurbach, John Griffin, David P. Whittinghamand Charles Chamsay vs.

Sanitary Wares Manufacturing Corporatoin, Ernesto V. Lagdameo,
Ernesto R. Lagdameo, Jr., Enrique R. Lagdameo, George F. Lee, Raul A.
Boncan, Baldwin Young and Avelino V. Cruz, G.R. No. 75875, December
15, 1989
Lopez Realty, Inc., and Asuncion Lopez Gonzales vs. FlorentinaFontecha, et al.,
and the National Labor Relations Commission, G.R. No. 76801, August 11,
1995
Laureano Investment & Development Corporation vs. the Honorable Court of

Appeals and BORMAHECO, Inc., G.R. No. 100468, May 6, 1997
BENJIE B. GEORG represented by BENJAMIN C. BELARMINO, JR. vs. HOLY

TRINITY COLLEGE, INC. (G .R. No. 190408, July 20, 2016, PEREZ, J.)
LYLITH B. FAUSTO, JONATHAN FAUSTO, RICO ALVIA, ARSENIA TOCLOY,

LOURDES ADOLFO and ANECITA MANCITA, Petitioners, - versus - MULTI
AGRI-FOREST AND COMMUNITY DEVELOPMENT COOPERATIVE
(formerly MAF CAMARINES SUR EMPLOYEES COOPERATIVE, INC.),
Respondent. (G.R. No. 213939, THIRD DIVISION, October 12, 2016,
REYES, J.)
GABRIEL YAP, SR. duly represented by GILBERT YAP and also in his personal
capacity, GABRIEL YAP, JR., and HYMAN YAP, vs. LETECIA SIAO, L
YNEL SIAO, JANELYN SIAO, ELEANOR FAYE SIAO, SHELETT SIAO and
HONEYLET SIAO (G.R. No. 212493)
CEBU SOUTH MEMORIAL GARDEN, INC. vs. LETECIA SIAO, L YNEL SIAO,
JANELYN SIAO, ELEANOR FAYE SIAO, SHELETT SIAO and HONEYLET
SIAO (G.R. No. 212504, June 1, 2016, PEREZ, J.)
Page 28 of 102
Particular partnership distinguished from a joint venture, to wit:
(a) a joint venture (an American concept similar to our joint accounts) is a
sort of informal partnership, with no firm name and no legal personality. In a
joint account, the participating merchants can transact business under their
own name, and can be individually liable thereof.
Heirs of Tang Eng Kee vs. Court of Appeals and Benguet Lumber Company, 341
SCRA 740 (2000)
Maranaw Hotels and Resort Corporation v. Court of Appeals, 576 SCRA 463
(2009)
San Miguel Bukid Homeowners Association, Inc. vs. City of Mandaluyong, et al,
G.R. No.153653, October 2, 2009; Republic of the Philippines vs.
Coalbrine International Philippines, et al G.R. No. 161838, April 7, 2010
Ligaya Esguerra, et al. vs. Holcim Philippines, Inc., G.R. No. 182571, September 2,
2013
The following officers may sign the verification and certification against forum shopping
on behalf of the corporation even in the absence of board resolution,
A.) Chairperson of the Board of Directors

B.) President
C.) General Manager
D.) Personnel Officer
E.) Employment Specialist in labor case
Mid Pasig Land and Development Corporation vs. Tablante, G.R. No. 162924,
February 4, 2010; PNCC Skyway Traffic Management and Security
Division Workers Organization vs. PNCC Skyway Corporation, GR No.
171231, February 17, 2010
Esguerra vs. Holcim Philippines G.R. No. 182571, September 2, 2013
Spouses Afulugencia vs. Metropolitan Bank and Trust Co. G.R. No. 185145,
February 05, 2014
2. Specific Powers, Theory of Specific Capacity
a. Power to Extend or Shorten Corporate Term
Page 29 of 102

Philippine National Bank vs. the Court of First Instance of Rizal, Pasig, et al., G.R.
No. 63201, May 27, 1992
b. Power to Increase or Decrease Capital Stock or Incur, Create, Increase Bonded

Indebtedness
Datu Tagoranao Benito vs. Securities & Exchange Commission, 123 SCRA 722
(1983)
Central Textile Mills, Inc. vs. National Wages and Productivity Commission, et al.,
G.R. No. 104102, August 7, 1996
c. Power to Deny Pre-Emptive Rights
d. Power to Sell or Dispose of Corporate Assets
Rosita Peña vs. the Court of Appeals, Spouses Rising T. Yap and Catalina Yap,
Pampanga Bus Co., Inc., Jesus Domingo, Joaquin Briones, Salvador
Bernardez, Marcelino Enriquez and Edgardo A. Zabat, G.R. No. 91478,
February 7, 1991
Islamic Directorate of the Philippines, Manuel F. Perea and Securities & Exchange
Commission,vs. Court of Appeals And Iglesia Ni Cristo, G.R. No.
117897, May 14, 1997
Y-1 Leisure Philippines, Inc. vs. Yu, G.R. No. 207161, September 8,
2015
e. Power to Acquire Own Shares
Boman Environmental Development Corporation vs. Hon. Court of Appeals and

Nilcar Y. Fajilan, G.R. No. 77860, November 22, 1988
f. Power to Invest Corporate Funds in another Corporation or Business
on. Securites and Exchange Commission and

Pilipinas Loan Company, Inc.,vs. H
Filipinas Pawnshop, Inc., G.R. No. 104720, April 4, 2001
Heirs of Antonio Pael and Andrea Alcantara and CrisantoPael vs. Court of
Appeals, Jorge H. Chin and Renato B. Mallari, G.R. No. 133547,
February 10, 2000
g. Power to Declare Dividends
Page 30 of 102

Madrigal & Company, Inc. vs. Hon. Ronaldo B. Zamora, et al., G.R. No. L-48237,
June 30, 1987
Republic Planters Bank vs. Hon. Enrique A. Agana, Sr., as Presiding Judge, Court
of First Instance of Rizal, Branch XXVIII, Pasay City, Robes-Francisco
Realty & Development Corporation and Adalia F. Robes, G.R. No.
51765, March 3, 1997
h. Power to Enter Into Management Contract
i. Ultra Vires Acts
i. Consequences of Ultra Vires Acts
Republic of the Philippines vs. Acoje Mining Company, Inc., G.R. No. L-18062,
February 28, 1963
Visayan vs. National Labor Relations Commission, 196 SCRA 410 (1991)
Yao Ka Sin Trading vs. Court of Appeals, 209 SCRA 763 (1992)
Traders Royal Bank vs. Court of Appeals, 269 SCRA 19 (1997)
Metropolitan Bank & Trust Co. vs. Quilts & All, Inc., 222 SCRA 480 (1993); See
also Lee vs. Court of Appeals, 345 SCRA 579 (2000)
Atrium Management Corporation vs. Court of Appeals, et al., G.R. No. 109491,
February 28, 2001
Maria Clara Pirovana, et al. vs. the De La Rama Steamship Co., G.R. No.
L-5377, December 29, 1954
UNIVERSITY OF MINDANAO, INC., Petitioner, v. BANGKO SENTRAL PILIPINAS,

ET AL.,Respondents. (G.R. No. 194964-65, January 11, 2016,
LEONEN,J.)
OFFICE of the OMBUDSMAN v. ANTONIO Z. DE GUZMAN, G.R. No. 197886,

October 4, 2017, Third Division, LEONEN, J.
3. How Exercised
a. By the Shareholders
Citibank, N.A. vs. Chua, G.R. No. 102300, March 17, 1993
Page 31 of 102

b. By the Board of Directors
Lopez Realty, Inc., and Asuncion Lopez Gonzales vs. Florentina Fontecha, et al.,
and the National Labor Relations Commission, G.R. No. 76801 August
11, 1995
Premium Marble Resources, Inc. vs. Court of Appeals, G.R. No. 96551, November
4, 1996

Tam Wing Tak vs. Hon. Ramon P. Makasiar, G.R. No. 122452, January 29, 2001
c. By the Officers
The Board of Liquidators, representing the Government of the Republic of the

Philippines vs. Heirs of Maximo M. Kalaw, Juan Bocar, Estate of the
deceased Casimiro Garcia, and Leonor Moll, G.R. No. L-18805, August
14, 1967
Rural Bank Of Milaor (Camarines Sur) vs. Francisca Ocfemia, Rowena Barrogo,
Marife O. Niño, Felicisimo Ocfemia, Renato Ocfemia Jr., and Winston
Ocfemia, G.R. No. 137686, February 8, 2000
Westmont Bank (formerly Associated Citizens Bank and now United Overseas
Bank, Phils.) And The Provincial Sheriff of Rizal vs. Inland
Construction and Development Corp., G.R. No. 123650, March 23, 2009
Associated Bank vs. Spouses Rafael and Monaliza Pronstroller, G.R. No. 148444,
July 14, 2008
Banate vs. Philippine Countryside Rural Bank (Liloan, Cebu), Inc., G.R. No.
163825, July 13, 2010
Megan Sugar Corporation vs. RTC of Ilo-ilo Br. 68, G.R. no. 170352, June 1, 2011
Advance Paper Corporation vs. Arma Traders Corporation, G.R. No 176897,

December 11, 2013.
4. Trust Fund Doctrine
Ong Yong, et al. vs. David S. Tiu, et al., G.R. No. 144476 & G.R. No. 144629, April
8, 2003
Ryuichi Yamamoto vs. Nishino Leather Industries, Inc. and Ikuo Nishino, G.R. No.
150283, April 16, 2008
Page 32 of 102

G. Board of Directors and Trustees
1. Doctrine of Centralized Management
Louis Vitton, S.A. vs. Villanueva, 216 SCRA 121 (1992)
Bitong vs. Court of Appeals, 292 SCRA 503 (1998)
Citibank, N.A. vs. Chua, 220 SCRA 75 (1993)
2. Business Judgment Rule
Sales vs. Securities and Exchange Commission, 169 SCRA 109 (1989)
Esguerra vs. Court of Appeals, 267 SCRA 380 (1997)
A.F realty & Development, Inc. vs. Dieselman Freight services Company, 373
SCRA 385 (2002)
Filipinas Port Services, Inc., represented by stockholders, Eliodoro C. Cruz and

Mindanao Terminal and Brokerage Services, Inc. vs. Victoriano S. Go, et
al., G.R. No. 161886, March 16, 2007
Matling Industrial and Commercial Corporation, et al. vs. Ricardo R. Coros, G.R.
No. 157802, October 13, 2010
L-45911, April 11, 1979
3. Tenure, Qualifications and Disqualifications of Directors or Trustees
Grace Christian High School vs. Court of Appeals, Grace Village Association, Inc.,
Alejandro G. Beltran, and Ernesto L. Go, G.R. No. 108905, October 23,
1997
Ramon C. Lee and Antonio DM. Lacdao vs. the Hon. Court of Appeals, Sacoba
Manufacturing Corp., Pablo Gonzales, Jr. and Thomas Gonzales, G.R.
No. 93695, February 4, 1992
4. Elections
Paul Lee Tan vs. Paul Sycip and Merritto Lim, G.R. No. 153468, August 17, 2006
ESTATE OF DR. JUVENCIO P. ORTAÑEZ, REPRESENTED BY DIVINA

ORTAÑEZ-ENDERES, LIGAYA NOVICIO, AND CESAR ORTAÑEZ,
Page 33 of 102
Petitioners, v. JOSE C. LEE, BENJAMIN C. LEE, CARMENCITA TAN,
ANGEL ONG, MA. PAZ CASAL-LEE, JOHN OLIVER PASCUAL,
CONRADO CRUZ, JR., BRENDA ORTAÑEZ, AND JULIE ANN PARADO
AND JOHN DOES, Respondents. (G.R. No. 184251, March 09, 2016,
PEREZ, J.)
a. Cumulative Voting/Straight Voting
SEC-OGC Opinion No. 14-10, Re: Cumulative Voting in Condominium

Corporation, June 2, 2014
b. Quorum
Lanuza vs. Court of Appeals, G.R. No. 131394, March 28, 2005
5. Removal
Raniel vs. Jochico, G.R. No. 153413, March 1, 2007
6. Filling of Vacancies
Valle Verde Country Club, Inc., et al. vs. Victor Africa, G.R. No. 151969, September
4, 2009
Bernas vs. Cinco, G.R. No. 163356, July 21, 2015
7. Compensation
Western Institute of Technology, Inc., et al. vs. Ricardo T. Salas, et al., G.R. No.
113032, August 21, 1997
8. Fiduciary Duties and Liability Rules
Benguet Electric Cooperative, Inc. vs. National Relations Commission, 209 SCRA
55 (1992)
Cebu Country Club Inc., et al. vs. Elizagaque 542 SCRA 65 (2008)
Heirs of Fe Tan Uy, represented by her heir, Mauling Uy Lim vs. International
Exchange Bank, G.R. No. 166282 & 83, February 13, 2013
Alert Security and Investigation Agency, Inc.,and/or Manuel D. Dasig vs.

SaidaliPasawilan, WilfredoVercelesand MelchorBulusan, G.R. No. 182397,
September 14, 2011
Page 34 of 102

Antonio C. Carag vs. National Labor Relations Commission, et al., G.R. No.
147590, April 2, 2007
United Coconut Planters Bank vs. Planters Products, Inc., Janet Layson and
Gregory Grey, G.R. No. 179015, June 13, 2012
Mercy Vda. de Roxas vs. Our Lady's Foundation, Inc., G.R. No. 182378, March 6,
2013
Rolando DS. Torres vs. Rural Bank of San Juan, Inc.,et al., G.R. No. 184520, March
13, 2013
Polymer Rubber Corporation vs. Ang, G.R. No. 185160, July 24, 2013
Elizabeth M. Gagui vs. Simeon Dejeroand TeodoroPermejo, G.R. No. 196036,

October 23, 2013
9. Responsibility for Crimes and Damages
Edward C. Ong vs. the Court of Appeals and the People of the Philippines, G.R.
No. 119858, April 29, 2003
Alfredo Ching vs. the Secretary of Justice, et al., G. R. No. 164317, February 6,
2006
FEDERATED LPG DEALERS ASSOCIATION, Petitioner, -versus- MA. CRISTINA L.

DEL ROSARIO, CELSO E. ESCOBIDO U, SHIELA M. ESCOBIDO, and
RESTY P. CAPILI, Respondents. (G.R. No. 202639, November 9, 2016,
SECOND DIVISION, DEL CASTILLO, J.)
10. Inside Information
11. Contracts
a. By Self-Dealing Directors with the Corporation
Prime White Cement Corporation vs. Intermediate Appellate Court, 220

SCRA 103
b. Between Corporations with Interlocking Directors
Development Bank of the Philippines vs. H onorable Court of Appeals and

Remington Industrial Sales Corporation , G.R. No. 126200, August 16,
2001
Page 35 of 102

12. Executive Committee
Filipinas Port Services Inc. vs. Go, G.R. No. 161886, March 16, 2007
13. Meetings
People of the Philippines vs. Hermenegildo Dumlao y Castiliano and Emilio La'o y
Gonzales, G.R. No. 168918, March 2, 2009
Lopez Realty Inc,m and Asuncion Lopez-Gonzales vs. Spouses Reynaldo

Tanjangco and Maria Luisa Arguelles-Tanjangco, G.R. No. 154291,
November 12, 2014
a. Quorum
Rosita Peña vs. the Court of Appeals, Spouses Rising T. Yap and Catalina Yap,
Pampanga Bus Co., Inc., Jesus Domingo, Joaquin Briones, Salvador
Bernardez, Marcelino Enriquez and Edgardo A. Zabat, G.R. No. 91478,
February 7, 1991
H. Stockholders and Members
1. Rights of a Stockholder and Members
a. Doctrine of Equality of Shares
Commissioner of Internal Revenue vs. Court of Appeals, G.R. No. 108576,

January 20, 1999.
2. Participation in Management
a. Proxy
Government Service Insurance System vs. the Hon. Court of Appeals, G.R. No.
183905, April 16, 2009
b. Voting Trust
Lee vs. Court of Appeals, G.R. No. 93695, February 4, 1992
3. Proprietary Rights
a. Right of Appraisal
Page 36 of 102

Boman Environmental Development Corporations vs. Court of Appeals, 167
SCRA 540 (1988)
Saw vs. Court of Appeals, 195 SCRA 797 (1991)
Turner vs. Lorenzo Shipping Corporation, G.R. No. 157479, November 24, 2010
b. Right to Inspect
L-45911, April 11, 1979
L-45911, April 11, 1979
Gonzales vs. Philippine National Bank, 122 SCRA 489 (1983)
Victor Africa vs. Presidential Commission on Good Government, et al., G.R. No.
83831, January 9, 1992
Ang-Abaya vs. Ang, 573 SCRA 129
Terelay Investment and Development Corporation vs. Yulo, G.R. No.

160924, August 5, 2015
Aderito Z. Yujuico and Bonifacio C. Sumbilla vs. Cezar T. Quiambao and Eric C.
Pilapil, G.R. No. 180416, June 02, 2014
ALFREDO L. CHUA, TOMAS L. CHUA and MERCEDES P. DIAZ, Petitioners, -

versus - PEOPLE OF THE PHILIPPINES, Respondent. (G.R. No. 216146,
August 24, 2016, THIRD DIVISION, REYES, J.)
ALEJANDRO D.C. ROQUE v. PEOPLE OF THE PHILIPPINES (G.R. No. 211108,

June 7, 2017, TIJAM, J.)
c. Pre-Emptive Right
SEC Letter-Opinion Dated March 10, 2000
Majority of Stockholders of Ruby Industrial Corporation vs. Lim, GR No. 165887,

June 6, 2011
Page 37 of 102
d. Right to Vote
Castillo vs. Balinghasay, G.R. No. 150976, October 18, 2004.
e. Right to Dividends
Nielson & Company, Inc., vs. Lepanto Consolidated Mining Company, G.R. No.
L-21601, December 17, 1966
Remo vs. Intermediate Appellate Court, 172 SCRA 405 (1989)
Nora A. Bitong vs. Court of Appeals, et al., G.R. No. 123553, July 13, 1998)
f. Right of First Refusal
J.G. Summit Holdings, Inc.,vs. Court of Appeals, et al. G.R. No. 124293, January
31, 2005
4. Remedial Rights
a. Individual Suit
Cua Jr. vs. Tan, G.R. No. 181455-56, December 4, 2009
b. Representative Suit
c. Derivative Suit
Reyes vs. Tan, 3 SCRA 198 (1961)
Republic Bank vs. Cuaderno, 19 SCRA 671 (1967)
San Miguel Corporation vs. Kahn, 176 SCRA 448 (1989)
Commart (Phils.) Inc. vs. Securities & Exchange Commission, 198 SCRA 73 (1991)
Western Institute of Technology, Inc. vs. Salas, 278 SCRA 216 (1997)
Lim vs. Lim-Yu, 352 SCRA 216 (2001)
Page 38 of 102

atricia Lim-Yu, in her
Gilda C. Lim, Wilhelmina V. Joven and Ditas A. Lerios, vs. P
capacity as a minority stockholder of Limpan Investment Corporation,
G.R. No. 138343, February 19, 2001
Reyes vs. Regional Trial Court of Makati, 561 SCRA 593
Bitong vs. Court of Appeals, 262 SCRA 503
San Miguel Corporation vs. Kahn, 176 SCRA 468
Bitong vs. Court of Appeals, 292 SCRA 503
Virginia s. Richard G. Young, et al., G

O. Gochan, et al. v .R. No. 131889, March 12,
2001
Tam Wing Tak vs. Hon. Ramon P. Makasiar, G.R. No. 122452, January 29, 2001
Asset Privatization Trust vs. Court of Appeals, 300 SCRA 579
Oscar C. Reyes vs. Hon. Regional Trial Court of Makati, Branch 142, Zenith
Insurance Corporation, and Rodrigo C. Reyes, G.R. No. 165744,
August 11, 2008
Yu vs. Yukayguan, 588 SCRA 589 (2009)
Hi- Yield, Inc. vs. Court of Appeals, 590 SCRA 548 (2009)
Legaspi Towers 300, Inc. vs. Muer, G.R. No. 170783, June 18, 2012
Ang, for and in behalf of Sunrise Marketing (Bacolod), Inc. vs. Spouses Ang, G.R.
No. 201675, June 19, 2013
Nestor Ching and Andrew Wellington vs. Subic Bay Golf and Country Club Inc., et
al., G.R. No. 174353, September 10, 2014
Alfredo Villamor Jr. vs. John S. Umale in Substitution of Hernando Balmores, G.R.
No. 172843, September 24, 2014,
MARCELINO M. FLORETE, JR., MARIA ELENA F. MUYCO AND RAUL A. MUYCO,

Petitioners, v. ROGELIO M. FLORETE, IMELDA C. FLORETE, DIAMEL
CORPORATION, ROGELIO C. FLORETE JR., AND MARGARET RUTH
C. FLORETE, Respondents. (G.R. No. 174909, January 20, 2016, 2016,
LEONEN, J.)
Page 39 of 102

ROGELIO M. FLORETE SR., Petitioner, v. MARCELINO M. FLORETE, JR., MARIA
ELENA F. MUYCO AND RAUL A. MUYCO, Respondents. (G.R. NO.
177275, January 20, 2016, LEONEN, J.)
CONCORDE CONDOMINIUM, INC., BY ITSELF AND COMPRISING THE UNIT

OWNERS OF CONCORDE CONDOMINIUM BUILDING, Petitioner, v.
AUGUSTO H. BACULIO; NEW PPI CORPORATION; ASIAN SECURITY
AND INVESTIGATION AGENCY AND ITS SECURITY GUARDS; ENGR.
NELSON B. MORALES, IN HIS CAPACITY AS BUILDING OFFICIAL OF
THE MAKATI CITY ENGINEERING DEPARTMENT; SUPT. RICARDO C.
PERDIGON, IN HIS CAPACITY AS CITY FIRE MARSHAL OF THE
MAKATI CITY FIRE STATION; F/C SUPT. SANTIAGO E. LAGUNA, IN
HIS CAPACITY AS REGIONAL DIRECTOR OF THE BUREAU OF FIRE
PROTECTION-NCR, AND ANY AND ALL PERSONS ACTING WITH OR
UNDER THEM, Respondents. (G.R. No. 203678, February 17, 2016,
PERALTA, J.)
5. Obligation of a Stockholder
Edward A. Keller & Co., Ltd. vs. COB Group Marketing, Inc., 141 SCRA 86 (1986)
Neugene Marketing, Inc.,vs. Court of Appeals, 303 SCRA 295 (1999)
6. Meetings
CORAZON H. RICAFORT, JOSE MANUEL H. RICAFORT AND MARIE GRACE H.

RICAFORT,Petitioners, v. THE HONORABLE ISAIAS P. DICDICAN, THE
HONORABLE RAMON M. BATO, JR., AND THE HONORABLE EDUARDO
B. PERALTA, JR., IN THEIR OFFICIAL CAPACITIES AS MEMBERS OF
THE SPECIAL FOURTEENTH DIVISION OF THE COURT OF APPEALS,
NATIONWIDE DEVELOPMENT CORPORATION, ROBERTO R. ROMULO,
CONRADO T. CALALANG, ALFREDO I. AYALA, JOHN ENGLE,
LEOCADIO NITORREDA AND LUIS MANUEL GATMAITAN,Respondents.
(G.R. Nos. 202647-50, March 09, 2016)
CORAZON H. RICAFORT, JOSE MANUEL H. RICAFORT AND MARIE GRACE H.

RICAFORT,Petitioners, v. ROBERTO R. ROMULO, CONRADO T.
CALALANG, ALFREDO I. AYALA, JOHN ENGLE, LEOCADIO
NITORREDA, NATIONWIDE DEVELOPMENT CORPORATION AND LUIS
MANUEL L. GATMAITAN, Respondents. (G.R. NOS. 205921-24, March 09,
2016, REYES, J.)
SIMNY G. GUY, AS MINORITY STOCKHOLDER AND FOR AND IN BEHALF OF

GOODLAND COMPANY, INC., Petitioner, v. GILBERT G. GUY, ALVIN
Page 40 of 102

AGUSTIN T. IGNACIO AND JOHN AND/OR JANE DOES, Respondents.
(G.R. No. 184068, April 19, 2016, SERENO, C.J.)
LYDIA LAO v. YAO BIO LIM, G.R. No. 201306, August 9, 2017, Second Division,
LEONEN, J.
a. Quorum
Jesus V. Lanuza, et al. vs. Court of Appeals, et al., G.R. No. 131394, March 28,
2005
I. Capital Structure
1. Subscription Agreements
Lanuza vs. Court of Appeals, 454 SCRA 54
Ong Yong, et al. vs. David S. Tiu, et al., G.R. No. 144476 & G.R. No.
144629, April 8, 2003
INTERPORT RESOURCES CORPORATION vs. SECURITIES

SPECIALIST, INC., and R.C. LEE SECURITIES INC. (G .R. No. 154069,
June 6, 2016, BERSAMIN, J.)
2. Shares of Stock
a. Nature of Stock
Stockholders of F. Guanson vs. Register of Deeds of Manila, 6 SCRA 373 (1962)
Philippine National Bank vs. Bitulok Sawmill, Inc., 23 SCRA 1366 (1968)
Rivera vs. Florendo, 144 SCRA 643 (1986)
De Erguiga vs. Court of Appeals, 178 SCRA 1 (1989)
Embassy Farms, Inc. vs. Court of Appeals, 188 SCRA 492 (1990)
Tan vs. Securities and Exchange Commission, 206 SCRA 740 (1992)
Razon vs. Intermediate Appellate Court, 207 SCRA 234 (1992)
Rural Bank of Salinas, Inc. vs. Court of Appeals, 210 SCRA 510 (1992)
Torres vs. Court of Appeals, 270 SCRA 493 (1997)

Page 41 of 102
China Banking Corporation vs. Court of Appeals, 270 SCRA 503 (1997)
Thomson vs. Court of Appeals, 298 SCRA 280 (1998)
Garcia vs. Jomouad, 323 SCRA 424 (2000)
Rural Bank of Lipa City, Inc. vs. Court of Appeals, 366 SCRA 188 (2001). See also
Batangas Laguna Tayabas Bus Company, Inc., et al., vs. Benjamin
Bitanga, et al., 362 SCRA 635 (2001)
Ponce vs. Alsons Cement Corporation, 393 SCRA 602 (2002)
Republic of the Philippines vs. Sandiganbayan and Victor Africa, 402 SCRA 84
(2003)
Republic of the Phils. vs. Sandiganbayan, Ibid.
Republic vs. Estate of Hans Menzi, 476 SCRA (2005)
Nautica Canning Corporation vs. Yumul 473 SCRA 415 (2005)
Trans Middle East (Phils.) vs. Sandiganbayan. 490 SCRA 455 (2006)
Pacific Basin Securities vs. Oriental Petroleum 531 SCRA 667 (2007)
Valley Golf and Country Club, Inc., vs. Vda. De Caram 585 SCRA 218 (2009)
Calatagan Golf Club, Inc. vs. Clemente, Jr. 585 SCRA 300 (2009)
Joselito Musni Puno vs. Puno Enterprises, Inc., represented by Jesusa Puno,
G.R. No. 177066, September 11, 2009
the Philippines, Inc., G.R. No. 116631, October 28, 1998
Trans Middle East (Phils.) vs. Sandiganbayan, G.R. No. 172556, June 9, 2006
Valley Golf and Country Club, Inc. vs. Vda. De Caram, 585 SCRA 218 (2009)
Majority of Stockholders of Ruby Industrial Corporation vs. Lim, G.R. No. 165887,
June 6, 2011
Page 42 of 102

Africa vs. Hon. Sandiganbayan, G.R. Nos. 172222/G.R. No. 174493/ G.R. No.
184636, November 11, 2013
Africa vs. Hon. Sandiganbayan, Ibid.
b. Subscription Agreements
Philippine National Bank vs. Bitulok Sawmill, Inc., et al., G.R. Nos. L-24177-85,
June 29, 1968
c. Classes of Shares of Stock
Republic Planters Bank vs. Hon. Enrique A. Agana, Sr., as Presiding Judge, Court
of First Instance of Rizal, Branch XXVIII, Pasay City, Robes-Francisco
Realty & Development Corporation and Adalia F. Robes, G.R. No.
51765, March 3, 1997
3. Payment of Balance of Subscription
a. Call by Board of Directors
b. Notice Requirement
c. Sale of Delinquent Shares
i. Effect of Delinquency
Calatagan Golf Club, Inc. vs. Sixto Clemente, Jr., G.R. No. 165443, April 16, 2009
ii. Call by Resolution of the Board of Directors
Apocada vs. National Labor Relations Commission, 172 SCRA 442 (1989)
4. Certificate of Stock
a. Nature of the Certificate
Stockholders of F. Guanzon and Sons, Inc. vs. Register of Deeds of Manila, G.R.
No. L-18216, October 30, 1962
Alfonso S. Tan vs. Securities and Exchange Commission, G.R. No. 95696 March 3,
1992
Nora A. Bitongvs. Court of Appeals, et al., G.R. No. 123553, July 13, 1998
Page 43 of 102

b. Negotiability
i. Requirements for Valid Transfer of Stocks
Enrique Razon vs. Intermediate Appellate Court and Vicente B. Chuidian, in his
capacity as Administrator of the Estate of the Deceased Juan T.
Chuidian, G.R. No. 74306, March 16, 1992
Rural Bank of Salinas, Inc. vs. Securities and Exchange Commission, et al., G.R.
No. 96674, June 26, 1992
China Banking Corporation vs. Court of Appeals, and Valley Golf and Country
Club, Inc., G.R. No. 117604, March 26, 1997
Nemesio Garcia vs. Nicolas Jomouad, Ex-Officio Provincial Sheriff of Cebu, and
Spouses Jose Atinon& Sally Atinon, G.R. No. 133969, January 26, 2000
The Rural Bank of Lipa City, Inc., et al. vs. Honorable Court of Appeals, G.R. No.
124535, September 28, 2001
s. Alsons Cement Corporation, and Francisco M. Giron, Jr.,

Vicente C. Ponce v
G.R. No. 139802, December 10, 2002
Fil-Estate Golf and Development vs. Vertex Sales and Trading Inc., G.R. No.
202079, June 10, 2013
Forest Hills Golf & Country Club vs. Vertex Sales and Trading Inc.G.R. No.
202205, March 6, 2013
ANNA TENG, Petitioner, v. SECURITIES AND EXCHANGE COMMISSION (SEC)

AND TING PING LAY, Respondents. (G.R. No. 184332, February 17,
2016, REYES, J.)
JOSEPH OMAR O. ANDAYA vs. RURAL BANK OF CABADBARAN, INC.,

DEMOSTHENES P. ORAIZ and RICARDO D. GONZALEZ (G.R. No.
188769, August 3, 2016, SERENO, CJ)
c. Issuance
i. Full Payment
Irineo S. Baltazar vs. Lingayen Gulf Electric Power, Co., Inc., G.R. No. L-16236,
June 30, 1965
5. Stock and Transfer Book

Page 44 of 102
a. Contents
Jesus V. Lanuza, et al. vs. Court of Appeals, et al., G.R. No. 131394, March 28,
2005
b. Who May Make Valid Entries
Manuel A. Torres, Jr., (Deceased), et al. vs. Court of Appeals, et al., G.R. No.
120138, September 5, 1997
J. Dissolution and Liquidation
Chase vs. Buencamino, 136 SCRA 365 (1985)
Chung Ka Bio vs. Intermediate Appellate Court, 163 SCRA 534 (1988)
Aguirre vs. FQB +7, Inc., G.R. No. 170770, January 9 2013
Alabang Development Corporation vs. Alabang Hills Village Association and

Rafael Tinio, G.R. No. 187456, June 02, 2014
1. Modes of Dissolution
a. Voluntary
i. Where No Creditors Are Affected
Teodoro B. Vesagas and Wilfred D. Asis vs. the Honorable Court of Appeals and
DelfinoRaniel and HelendaRaniel, G.R. No. 142924, December 5,
2001
ii. Where Creditors Are Affected
iii. By Shortening of Corporate Term
b. Involuntary
i. By Expiration of Corporate Term
Philippine National Bank vs. Court of First Instance of Rizal, Pasig, et al., G.R. No.
63201, May 27, 1992
ii. Failure to Organize and Commence Business Within 2 Years from

Incorporation
Page 45 of 102
iii. Legislative Dissolution
iv. Dissolution by the SEC on Grounds under Existing Laws
PDIC vs. BIR, G.R. No. 158261, December 18, 2006
2. Methods of Liquidation
a. By the Corporation Itself
Yu vs. Yukayguan, G.R. No. 177549, June 18, 2009
b. Conveyance to a Trustee within a Three-Year Period
Carlos Gelano and Guillermina Mendoza De Gelano vs. the Honorable Court of
Appeals and Insular Sawmill, Inc., G.R. No. L-39050 February 24, 1981
Rene Knecht and Knecht, Inc. vs. United Cigarette Corp., represented by
Encarnacion Gonzales Wong, and Eduardo Bolima, Sheriff, Regional
Trial Court, Branch 151, Pasig City, G.R. No. 139370, July 4, 2002
c. By Management Committee or Rehabilitation Receiver
Alemar's Sibal & Sons, Inc. vs. Honorable Jesus M. Elbinias, in his capacity as the
Presiding Judge of Regional Trial Court, National Capital Region,
Branch CXLI (141), Makati, and G.A. Yupangco& Co., Inc., G.R. No.
75414 June 4, 1990
Victor Yam &Yek Sun Lent, doing business under the name and style of
Philippine Printing Works vs. the Court of Appeals and Manphil
Investment Corporation, G.R. No. 104726, February 11, 1999
Alfredo Villamor Jr. vs. John S. Umale in Substitution of Hernando Balmores, G.R.
No. 172843, September 24, 2014
SPS. AURELIO HITEROZA and CYNTHIA HITEROZA, Petitioners, - versus -

CHARITO S. CRUZADA, President and Chairman, CHRIST'S
ACHIEVERS MONTESSORI, INC., and CHRIST'S ACHIEVERS
MONTESSORI, INC., Respondents. (G.R. No. 203527, June 27, 2016,
SECOND DIVISION, BRION J)
d. Liquidation after Three Years
Mambulao Lumber Company vs. Philippine National Bank, 22 SCRA 359 (1968);
National Abaca & Other Fibers Corporation vs. Pore, 2 SCRA 989
(1961). See, however, Gelano and Reburiano cases, infra
Page 46 of 102
Clemente vs. Court of Appeals, 242 SCRA 717 (1995) . See also Reburiano vs.
Court of Appeals, 301 SCRA 342 (1999)
Philippine National Bank vs. Bitulok Sawmill Inc., SCRA 269.
Paramount Insurance Corp. vs. A.C. Ordoñez Corporation and Franklin Suspine,
G.R. No. 175109, August 6, 2008
Lucia Barramedavda. de Ballesteros vs. Rural Bank of Canaman,

Inc., represented by its liquidator, the Philippine Deposit Insurance
Corporation, G.R. No. 176260, November 24, 2010
Vigilla vs. Philippine College of Criminology, GR No. 200094, June 10, 2013
K. Other Corporations
1. Close Corporations
a. Characteristics of a Close Corporation
Manuel R. Dulay Enterprises, Inc. vs. Court of Appeals, 225 SCRA 678 (1993)
San Juan Structural and Steel Fabricators, Inc. vs. Court of Appeals, Motorich
Sales Corporation, Nenita Lee Gruenberg, ACL Development Corp. and
JNM Realty and Development Corp., G.R. No. 129459, September 29,
1998
Sergio F. Naguiat, doing business under the name and style Sergio F.
NaguiatEnt., Inc., & Clark Field Taxi, Inc.,vs. National Labor Relations
Commission (Third Division), National Organization Of Workingmen and
its members, Leonardo T. Galang, et al., G.R. No. 116123, March 13, 1997
Bustos v. Millians Shoe, Inc., G.R. No. 185024, April 24, 2017, SERENO, C.J.
b. When Board Meeting is Unnecessary or Improperly Held
Manuel R.Dulay Enterprises, Inc., VirgilioE. Dulay and Nepomuceno Redovan vs.
the Honorable Court of Appeals, G.R. No. 91889 August 27, 1993
e. Pre-Emptive Right
f. Amendment of Articles of Incorporation
g. Deadlocks
2. Non-Stock Corporations
Page 47 of 102
a. Treatment of Profits
b. Distribution of Assets upon Dissolution
Litonjua vs. Court of Appeals, 286 SCRA 136 (1998)
Long vs. Basa, 366 SCRA 113 (2001)
Ao-As vs. CA 491 SCRA 339 (2006)
Petronilo J. Barayuga vs. Adventist University of the Philippines, through its

Board of Trustees, represented by its Chairman, Nestor D. Dayson,
G.R. No. 168008, August 17, 2011
Rev. Luis Ao-as, et al. vs. Hon. Court of Appeals, G.R. No. 128464, June 20, 2006
LIM VS..MOLDEX LAND INC (G.R. No. 206038, January 25, 2017, J. Mendoza)
3. Foreign Corporations
a. Bases of Authority over Foreign Corporations
i. Consent
Eriks PTE. Ltd. vs. Court of Appeals, G.R. No. 118843, February 6, 1997
ii. Doctrine of “Doing Business” (related to definition under the Foreign Investments Act,
R.A. No. 7042)
Wang Laboratories, Inc., vs. Mendoza, 156 SCRA 44 (1987)
N. V. Reederij Amsterdam vs. Commissioner on International Revenue, 162 SCRA

487 (1988)
Schmid & Oberly Inc. vs. RJL Martinez Fishing Corporation, 166 SCRA 493 (1988)
Marubeni Nederland B.V. vs. Tensuan, 190 SCRA 105 (1990)
Merrill Lynch Futures, Inc. vs. Court of Appeals, 211 SCRA 824 (1992)
Philip Morris, Inc. vs. Court of Appeals, 224 SCRA 576 (1993)
Signetics Corporation vs. Court of Appeals, 225 SCRA 737 (1993)
Page 48 of 102

George Grotjahn GBBH & Co. vs. Isnani, 235 SCRA 216 (1994)
Litton Mill, Inc. vs. Court of Appeals, 256 SCRA 696 (1996)
Communication Materials and Design, Inc. vs. Court of Appeals, 260 SCRA 673
(1996)
Columbia Pictures, Inc. vs. Court of Appeals, 261 SCRA 144 (1996)
Hahn vs. Court of Appeals, 266 SCRA 537 (1997)
Eriks Pte., Ltd. vs. Court of Appeals, 267 SCRA 567 (1997)
Avon Insurance PLC vs. Court of Appeals, 278 SCRA 312 (1997)
Hutchison Ports Philippines Limited vs. Subic Bay Metropolitan Authority, 339
SCRA 34 (2000)
MR Holdings, Ltd. vs. Bajar, 380 SCRA 617 (2002)
Lorenzo Shipping Corp. vs. Chubb and Sons, 431 SCRA 266 (2004)
Expertravel & Tours, Inc. vs. CA, 459 SCRA 147 (2005)
B. Van Zuiden Bros Ltd. vs. GTVL Manufacturing Industries, 523 SCRA 233 (2007)
Rimbunan Hijau Group of Companies vs. Oriental Wood Processing Corporation,

470 SCRA 650 (2005)
Aboitiz Shipping Corp. vs. Insurance Co. of North America, 561 SCRA 262 (2008)
Cargill, Inc., vs. Intra Strata Assurance Corporation, G.R. No. 168266, March 15,
2010
Hutchison Ports Philippines Limited vs. Subic Bay Metropolitan Authority,

International Container Terminal Services Inc., Royal Port Services,
Inc., and the Executive Secretary, G.R. No. 131367, August 31, 2000
The Home Insurance Company vs. Eastern Shipping Lines, G.R. No. L-34382 July
20, 1983
Steelcase, Inc. vs. Design International Selections, Inc., G.R. No. 171995, April 18,
2012
Hahn vs. Court of Appeals, 266 SCRA 537

Page 49 of 102
G.B. Van Airline Bros., Ltd. vs. GTVL Manufacturing Industries, Inc., 523 SCRA
233
N.V. Reederij Amsterdam vs. Commissioner of Internal Revenue, 162 SCRA 487
b. Necessity of a License to Do Business
2012
Antam Consolidated, Inc. vs. Court of Appeals, 143 SCRA 534 (1986)
c. Personality to Sue
Bulakhidas vs. Navarro, 142 SCRA 1 (1986)
Converse Rubber Corporation vs. Universal Rubber Products Inc., 147 SCRA 154
(1987)
Top-Weld Manufacturing, Inc. vs. Eced, S.A., 138 SCRA 118. See also Granger
Associates vs. Microwave Systems, Inc., 189 SCRA 631 (1990)

MR Holdings, Ltd. vs. Sheriff Carlos P. Bajar, Sheriff Ferdinand M. Jandusay,
Solidbank Corporation, and Marcopper Mining Corporation, G.R. No.
138104, April 11, 2002
Global Business Holdings, Inc., vs. Surecomp Software, B.V., G.R. No. 173463,
October 13, 2010
d. Instances When Unlicensed Foreign Corporations May Be Allowed to Sue Isolated

Transactions
Steelcase, Inc., vs. Design International Selections, Inc., G.R. No. 171995, April 18,
2012
L. Mergers and Consolidations
1. Definition and Concept
Edward J. Nell Company vs. Pacific Farms, Inc., 15 SCRA 415 (1965)
Associated Bank vs. Court of Appeals and Lorenzo Sarmiento, Jr., G.R. No.
123793, June 29, 1998
Page 50 of 102

SME Bank Inc. vs. Gaspar, G.R. No. 186641, October 8, 2013
Commission of Internal Revenue vs. Bank of Commerce, G.R. No. 180529,

November 25, 2013
Bank of Commerce vs. Radio Philippines Network Inc., et al., G.R. No. 195615,
April 21, 2014
Bank of Commerce v. Heirs of Dela Cruz, G.R. No. 211519, August 14, 2017,
Justice Bersamin
2. Constituent vs. Consolidated Corporation
John F. McLeod vs. National Labor Relations Commission (First Division), et al.,
G.R. No. 146667, January 23, 2007
3. Effectivity
Philippine National Bank & National Sugar Development Corporation vs. Andrada
Electric & Engineering Company, G.R. No. 142936, April 17, 2002
Mindanao Savings and Loan Association, Inc., represented by its Liquidator, the
Philippine Deposit Insurance Corporation vs. Edward Willkom; Gilda Go;
Remedios Uy; Malayo Bantuas, in his capacity as the Deputy Sheriff of
Regional Trial Court, Branch 3, Iligan City; and the Register of Deeds of
Cagayan de Oro City, G.R. No. 178618, October 11, 2010
4. Effects
Associated Bank vs. Court of Appeals and Lorenzo Sarmiento, Jr., G.R. No.
123793, June 29, 1998
Babst vs. Court of Appeals, 350 SCRA 341 (2001)
Omictin vs. Court of Appeals 512 SCRA 70 (2007)
Spouses Ramon Nisce vs. Equitable PCI Bank 516 SCRA 231 (2007)
Bank of the Philippine Islands vs. BPI Employees Union-Davao

Chapter-Federation of Unions In Bpi Unibank, G.R. No. 164301, October
19, 2011
Bank of Philippine Islands vs. Lee, G.R. No. 190144, August 1, 2012
Page 51 of 102

THE PHILIPPINE GEOTHERMAL, GEOTHERMAL, INC. EMPLOYEES UNION,
Petitioner, -versus- UNOCAL PHILIPPINES, INC. (now known as
CHEVRON GEOTHERMAL PHILIPPINES HOLDINGS, INC.), Respondent.
(GR. No. 190187, September 28, 2016, SECOND DIVISION, LEONEN,J.)
SUMIFRU (PHILIPPINES) CORPORATION (SURVIVING ENTITY IN A MERGER

WITH DAVAO FRUITS CORPORATION AND OTHER COMPANIES) v.
BERNABE BAYA, G.R. No. 188269, April 17, 2017, First Division,
PERLAS-BERNABE, J.
M. Miscellaneous Topics
1. Corporate Officers
Board of Liquidators vs. Kalaw, 20 SCRA 987 (1967)
De Tavera vs. Philippine Tuberculosis Society, Inc., 112 SCRA 243 (1982)
Sia vs. People, 121 SCRA 655 (1983)
AC Ransom Labor Union vs. NLRC 142 SCRA 269 (1986); Villanueva vs. Adre 172
SCRA 876 (1989).
Prime White Cement Corporation vs. Intermediate Appellate Court, 220 SCRA 103
(1993)
Tramart Mercantile, Inc. vs. Court of Appeals, 238 SCRA 14 (1994)
De Guzman vs. National Labor Relations Commission, 253 SCRA 46 (1996)
New Durawood Company Inc. vs. Court of Appeals, 253 SCRA 740 (1996)
Tabang vs. National Labor Relations Commission, 266 SCRA 462 (1997)
Naguiat vs. National Labor Relations Commission, 269 SCRA 564 (1997)
Llamdo vs. Court of Appeals, 270 SCRA 423 (1997)
Reahs Corporation vs. National Labor Relations Commission, 271 SCRA 247
(1997)
Uichico vs. National Labor Relations Commission, 273 SCRA 35 (1997)
Torres, Jr. vs. Court of Appeals, 278 SCRA 793 (1997)
Page 52 of 102

San Juan Structure and Steel Fabricators, Inc. vs. Court of Appeals, 296 SCRA
631 (1998)
People’s Aircagro and Warehousing Company, Inc. vs. Court of Appeals, 297
SCRA 170 (1998)
Restaurante Las Conchas vs. Llego, 314 SCRA 24 (1999) (Please see, however,
decisions to the contrary in Carag vs. NLRC and Macleod vs. NLRC, infra)
Consolidated Food Corporation vs. National Labor Relations, 315 SCRA 129
(1999)
Rural Bank of Milaor (Camarines Sur) vs. Ocfemia, 325 SCRA 99 (2000); Soler vs.
Court of Appeals, 358 SCRA 57 (2001)
Lao vs. CA, 325 SCRA 694 (2000)
BA Savings Bank vs. Court of Appeals, 336 SCRA 484 (2000)
Security Bank and Trust Co. vs. Cuenca, 341 SCRA 781 (2000)
Atrium Management Corp. vs. Court of Appeals, 353 SCRA 23 (2001)
Safic Alcan & Cie vs. Imperial Vegetable Co., Inc., 355 SCRA 559 (2001)
Nakpil vs. Intercontinental Broadcasting Corporation, 379 SCRA 653 (2002)
Great Asian Sales Center Corporation vs. Court of Appeals, 381 SCRA 557 (2002)
DBP vs. Sps. Francisco and Leticia Ong, 460 SCRA 170 (2005)
Litonjua, Jr. vs. Eternity Corporation 490 SCRA 204 (2006)

Easycall Communications Phils. Inc. vs. Edward King 478 SCRA 102 (2005)
Elcee Farms, Inc. vs. NLRC 512 SCRA 602 (2007)
Aratea vs. Suico, 518 SCRA 501 (2007)
Carag vs. NLRC 520 SCRA 28 (2007)
Pamplona Plantation Company vs. Ramon Acosta et al., 510 SCRA 249 (2006)
People of the Philippines vs. Hermenegildo Dumlao and Emilio La’o, 580 SCRA
409 (2009)
Page 53 of 102

James U. Gosiaco vs. Leticia Ching and Edwin Casta 585 SCRA 471 (2009)
Virata v. Ng Wee, G.R. Nos. 220926, 221058, 221109, 221135 & 221218, July 5,
2017, Justice Velasco
2. Doctrine of Corporate Negligence
Professional Services, Inc. vs. CA 544 SCRA 170 (2008)
3. Doctrine of Apparent Authority
Calubad v. Ricarcen Development Corp., G.R. No. 202364, August 30, 2017,
Justice Leonen
4. Authority to sign certification against forum shopping
Digital Microwave Corp. vs. Court of Appeals, 328 SCRA 289 (2000)
BA Savings Bank vs. Court of Appeals, 336 SCRA 484 (2000)
Shipside Incorporation vs. Court of Appeals, 352 SCRA 334 (2001)
San Pablo Manufacturing Corporation vs. Commissioner of Internal Revenue 492

SCRA 192 (2006)
Philippine Rabbit Bus Lines, Inc., vs. Aladdin Transit Corp. 494 SCRA 358 (2006)
Cagayan Valley Drug Corporation vs. CIR 545 SCRA 10 (2008)
Maranaw Hotels & Resort Corporation vs. Court of Appeals 576 SCRA 463 (2009)
5. Teleconferencing
Expertravel & Tours, Inc. vs. CA 459 SCRA 147 (2005)
6. Condominium Corporation
Yamane vs. BA Lepanto Condominium Corporation 474 SCRA 258 (2005)
7. Interest in Investment
The President of PDIC as Liquidator of Pacific Banking Corporation vs. Reyes 460
SCRA 473 (2005)
8. Penal Provisions
Page 54 of 102
IENT VS. TULLETT PREBON (G.R. No. 189158, January 11, 2017, J. Leonardo-De
Castro)
VI. Foreign Investments Act (R.A. No. 7042)
A. Definition of Terms
1. “Doing Business” in the Philippines
Alfred Hahn vs. Court of Appeals, G.R. No. 113074, January 22, 1997
Eriks Pte. Ltd. vs. Court of Appeals, G.R. No. 118843, February 6, 1997
Agilent Technologies Singapore (Pte.) Ltd. vs. Integrated Silicon Technology

Philippines Corporation, G.R. No. 154618, April 14, 2004
2012
B. Foreign Investment Negative List
Heirs of Wilson Gamboa vs. Finance Secretary Margarito Teves, G.R. No. 176579,
October 9, 2012
VII. Insolveny Law
Republic vs. Peralta, 150 SCRA 39 (1987)
DBP vs. NLRC, 183 SCRA 328; Hautea vs. NLRC, 230 SCRA 119 (1994)
Radiola-Toshiba Phils. vs. Intermediate Appellate Court, 199 SCRA 373 (1991)
State Investment House vs. Citibank, NA 203 SCRA 9 (1991)
Barotac Sugar Mills vs. Court of Appeals, 275 SCRA 497 (1997)
RCBC vs. Intermediate Appellate Court, 320 SCRA 279 (1999)
Rubberworld vs. NLRC, 336 SCRA 433 (2000)
Philippines Veterans Bank Employees Union vs. Vega, 360 SCRA 33 (2001)
Development Bank of the Philippines vs. Court of Appeals, 363 SCRA 307 (2001)
Page 55 of 102
Philippine Airlines vs. Sps. Sadic, 389 SCRA 589 (2002)
Philippine Blooming Mills, Inc. and Alfredo Ching vs. Court of Appeals, 413 SCRA
445 (2003)
MWSS vs. Daway, 432 SCRA 559 (2004)
Flexo Manufacturing Corporation vs. Columbus Foods 455 SCRA 272 (2005)
Union Bank of the Philippines vs. SPS. Alfredo Ong 491 SCRA 581 (2006)
In Re: Petition for Assistance in the Liquidation of the Rural Bank of Bokod
(Benguet), PDIC vs. Bureau of Internal Revenue, 511 SCRA 123 (2006)
Tiong Rosario vs. Alfonso Co, 563 SCRA 239 (2008)
A. Financial Rehabilitation and Insolvency Act (FRIA)
Bank of the Philippine Islands v. Sarabia Manor Hotel Corporation, G.R. No.
175844, 29 July 2013, J. Perlas-Bernabe
MERVIC REALTY, INC. AND VICCY REALTY, INC., Petitioners, v. CHINA BANKING
CORPORATION, Respondent. (G.R. No. 193748, February 03, 2016, BRION, J.)
VIVA SHIPPING LINES, INC., Petitioner, v. KEPPEL PHILIPPINES MINING, INC.,

METROPOLITAN BANK & TRUST COMPANY, PILIPINAS SHELL PETROLEUM
CORPORATION, CITY OF BATANGAS, CITY OF LUCENA, PROVINCE OF
QUEZON, ALEJANDRO OLIT, NIDA MONTILLA, PIO HERNANDEZ, EUGENIO
BACULO, AND HARLAN BACALTOS, Respondents. (G.R. No. 177382,
February 17, 2016, LEONEN, J.)
PHILIPPINE ASSET GROWTH TWO, INC. (Successor-In-Interest of Planters

Development Bank) and PLANTERS DEVELOPMENT BANK vs. FASTECH
SYNERGY PHILIPPINES, INC. (Formerly First Asia System Technology, Inc.),
FASTECH MICROASSEMBLY & TEST, INC., FASTECH ELECTRONIQUE, INC.,
and FASTECH PROPERTIES, INC. (G.R. No. 206528, June 28, 2016,
PERLAS-BERNABE, J.)
Land Bank of the Philippines v. Fastech Synergy Philippines, Inc., G.R. No.
206150, August 9, 2017, Justice Leonen
METROBANK VS. LIBERTY CORRUGATED (GR 184317, January 25 2017, J.

Leonen)
Page 56 of 102

LAND BANK of the PHILIPPINES v. WEST BAY COLLEGES, INC., PBR
MANAGEMENT and DEVELOPMENT CORP. and BCP TRADING CO., INC., G.R.
No. 211287, April 17, 2017, Third Division, REYES, J.:
BUREAU of INTERNAL REVENUE, ASSISTANT COMMISSIONER ALFREDO v.

MISAJON, GROUP SUPERVISOR ROLANDO M. BALBIDO, and EXAMINER
REYNANTE DP. MARTIREZ v.LEPANTO CERAMICS, INC., G.R. No. 224764,
April 24, 2017, First Division, PERLAS-BERNABE, J.
PEOPLE of the PHILIPPINES v. ERVIN Y. MATEO, EVELYN E. MATEO,

CARMELITA B. GALVEZ, ROMEO L. ESTEBAN, GALILEO J. SAPORSANTOS
and NENITA S. SAPORSANTOS, ERVIN Y. MATEO, G.R. No. 210612, October
9, 2017, Second Division, PERALTA, J.
VIII. Securities Regulation Code (R.A. No. 8799)
THE SECURITIES AND EXCHANGE COMMISSION (SEC) CHAIRPERSON

TERESITA J. HERBOSA, COMMISSIONER MA. JUANITA E. CUETO,
COMMISIONER RAUL J. PALABRICA, COMMISSIONER MANUEL HUBERTO B.
GAITE, COMMISIONER ELADIO M. JALA, and THE SEC ENFORCEMENT AND
PROSECUTION DEPARTMENT, Petitioners, - versus - CJH DEVELOPMENT
CORPORATION and CJH SUITES CORPORATION, herein represented by its
EXECUTIVE VICEPRESIDENT AND CHIEF OPERATING OFFICER, ALFREDO R.
YNIGUEZ III, Respondents. (G.R. No. 210316, THIRD DIVISION, November 28,
2016, PERALTA, J.)
A. State Policy, Purpose
Abacus Securities Corporation vs. Ruben Ampil, G.R. No. 160016, February 27,
2006
B. Securities Required to be Registered
Betty Gabionza and Isabelita Tan vs. Court of Appeals, G.R. No.161057, Sept. 12,
2008
Timeshare Realty vs. Cesar Lao, G.R. No. 158941, Feb. 11, 2008
Securities and Exchange Commission vs. Prosperity.Com, Inc., G.R. No. 164197,
Jan. 25, 2012
Securities and Exchange Commission vs. Oudine Santos, G.R. No. 195542, Mar.
19, 2014
Page 57 of 102

1. Exempt Securities
Union Bank of the Philippines vs. Securities and Exchange Commission, G.R. No.
138949, June 6, 2001
2. Exempt Transactions
A. Nestle Philippines, Inc.,vs. Court of Appeals, G.R. No. 86738, November 13,
1991 Procedure for Registration of Securities
B. Prohibitions of Fraud, Manipulation and Insider Trading
Onapal Phils. Commodities, Inc. vs. Court of Appeals, G.R. No. 90707,
Feb. 1, 1993
1. Manipulation of Security Prices

2. Short Sales
3. Fraudulent Transactions
Securities and Exchange Commission v. Price Richardson Corp., G.R. No.

197032, July 26, 2017, Justice Leonen
4. Insider Trading
Securities and Exchange Commission vs. Interport Resources Corp., G.R. No.
135808, Oct. 6, 2008
C. Protection of Investors
Phil. Veterans Bank vs. Callangan and/or SEC, G.R. No. 191995, Aug. 3, 2011
1. Tender Offer Rule
Cemco Holdings, Inc. vs. National Life Ins. Co. of the Phil., G.R. No. 171815,
Aug. 7. 2007
2. Rules on Proxy Solicitation
GSIS vs. Court of Appeals, G.R. No. 183905, Apr. 16, 2009
3. Disclosure Rule
Page 58 of 102

Securities and Exchange Commission vs. Interport Resources Corp., G.R. No.
135808, Oct. 6, 2008
D. Civil Liability
Citibank, N.A. vs. Tanco-Gabaldon, et al., G.R. No. 198444, Sep. 4, 2013
Jose U. Pua vs. Citibank, N.A., G.R. No. 180064, Sep. 16, 2013
H. Miscellaneous Topics
1. Cases under the old rules where the SEC had jurisdiction over intra-corporate
disputes
Philex Mining Corporation vs. Reyes, 118 SCRA 602 (1982)
Union Glass & Container Corporation vs. Securities & Exchange Commission,
126 SCRA 21 (1983). See also Magalad vs. Premier Financing Corporation,
209 SCRA 260 (1992)
Philippine School of Business Administration vs. Leano, 127 SCRA 778 (1984)
DMRC Enterprises vs. Este Del Sol Mountain Reserve, Inc., 132 SCRA 293 (1984)
Development Bank of the Philippines vs. Ilustre, Jr., 138 SCRA 11 (1985)
Banez vs. Dimensional Construction Trade and Development Corporation, 140

SCRA 249 (1985)
Dy vs. The National Labor Relations Commission, 145 SCRA 211 (1986)
Abejo vs. Dela Cruz, 149 SCRA 654 (1987)
Malayan Intergrated Industries Corporation vs. Mendoza, 154 SCRA 548 (1987)
Please see Reyes vs. RTC of Makati, infra.
Boman Environmental Corp. vs. Court of Appeals, 167 SCRA 540 (1988)
Fortune Cement Corporation vs. National Labor Relations Commission, 193

SCRA 391 (1991)
Andaya vs. Abadia, 228 SCRA 705 (1993)
Torio vs. Court of Appeals, 230 SCRA 626 (1994)
Page 59 of 102

Pearson & George, (S.E. Asia), Inc. vs. National Labor Relations Commission, 253
SCRA 136 (1996)
Ongkingco vs. National Labor Relations Commission, 270 SCRA 613 (1997)
Garcia vs. Eastern Telecommunications Philippines, Inc 585 SCRA 450 (2009)
2. Cases under the new rule that the RTC exercises jurisdiction over intra-corporate
disputes
Calleja vs. Panday 483 SCRA 680 (2006)
Orendain vs. BF Homes, Inc., 506 SCRA 348 (2006)
Ujuico vs. Quiambao 513 SCRA 243 (2007)
Reyes vs. RTC of Makati, 561 SCRA 593 (2008)
Unlad Resources Dev’t., Corp., et al. vs. Renato P. Dragon, 560 SCRA 63 (2008)
Roberto L. Abad, et al vs. Philippine Communications Satellite Corporation, G.R.

No. 200620, March 18, 2015
San Jose v. Ozamiz, G.R. No. 190590, July 12, 2017, Justice Carpio
Dy Teban Trading, Inc. v. Dy, G.R. No. 185647, July 26, 2017, Justice Jardeleza
Oca v. Custodio, G.R. No. 199825, July 26, 2017, Justice Leonen
BELO MEDICAL GROUP INC. v. JOSE SANTOS and VICTORIA BELO, G.R. No.
185894, August 30, 2017, Third Division, LEONEN, J.
3. Regulatory Jurisdiction
Peneyra vs. Intermediate Appellate Court, 181 SCRA 244 (1990)
Securities and Exchange Commission vs. Court of Appeals, 246 SCRA 738 (1995)
Philippine Stock Exchange vs. Securities & Exchange Commission, 281 SCRA
232 (1997)
Philippine National Construction Corporation vs. Pabion, 320 SCRA 188 (1999)
TCL Sales Corporation vs. Court of Appeals, 349 SCRA 35 (2001)
Page 60 of 102

Pilipinas Loan Company, Inc. vs. Securities and Exchange Commission, 356
SCRA 193 (2001)
Mobilia Products, Inc., vs. Umezawa 452 SCRA736 (2005)
Abacus Securities vs. Ampil 483 SCRA 315 (2006)
Securities and Exchange Commission vs. Performance Foreign Exchange

Corporation 495 SCRA 579 (2006)
Philippine Association of Stock Transfer and Registry Agencies, Inc.,v. CA et al.

539 SCRA 61 (2007)
Eustacio Atwel, et al. vs. Conception Progressive Association, Inc., 551 SCRA 272
(2008)
Baviera vs. Standard Chartered Bank, et al. 515 SCRA 170 (2007)
Cemco Holdings vs. National Life Insurance Company, 529 SCRA 355 (2007)
Provident International Resources Corp., et al. vs. Joaquin T. Venus, et al. 554
SCRA 540 (2008)
Securities and Exchange Commission vs. Interport Resources Corporation 567

SCRA 354 (2008)
GSIS vs. Court of Appeals 585 SCRA 679 (2009)
4. Corporate Rehabilitation
Tyson’s Super Concrete, Inc. vs. Court of Appeals 461 SCRA 69 (2005)
Spouses Sobrejuanite vs. ASB Development Corporation 471 SCRA 763 (2005)
Sy Chim vs. Sy Siy Ho & Sons, Inc., 480 SCRA 465 (2006)
Ao-As vs. CA 491 SCRA 339 (2006)
Danilo G. Punongbayan vs. Perfecto G. Punongbayan, Jr. 491 SCRA 581 (2006)
New Frontier Sugar Corporation vs. RTC of Ilo-ilo and Equitable PCI Bank, 513
SCRA 601 (2007)
Philippine Airlines vs. Zamora 514 SCRA 584 (2007)
Page 61 of 102

Union Bank of the Philippine vs. ASB Devt. Corp., 560 SCRA 578 (2008)
China Banking Corporation vs. ASB Holdings, Inc., 575 SCRA 247 (2008)
Garcia vs. Philippine Airlines. G.R. No. 164856 576 SCRA 479 (2009)
Malayan Insurance Company, Inc. vs. Victorias Milling Company, Inc. 586 SCRA
45 (2009)
Puerto Azul Land Inc. vs. Pacific Wide Realty Development Corporation, G.R. No.
184000, September 17, 2014
Robinson’s Bank Corporation vs. Hon. Samuel H. Gaerlan, G.R. No. 195289,
September 24, 2014
Philippine Bank of Communications vs. Basic Polyprinters and Packaging

Corporation, G.R. No. 187581, October 20, 2014
Marilyn Victorio-Aquino vs. Pacific Plans Inc., and Mamareto A. Marcelo Jr., G.R.
No. 193108, December 10, 2014
BPI Family Sacings Bank Inc., vs. St. Michael Medical Center, Inc., G.R. No.
205469, March 25, 2015
NSC Holdings (Philippines), Inc. v. Trust International Paper Corp., G.R. No.
193069, March 15, 2017, SERENO, C.J
IX. Negotiable Instruments Law
A. Forms and Interpretation
1. Requisites of Negotiability
Equitable Banking Corporation vs. the Honorable Intermediate Appellate

Court and The Edward J. Nell Co., G.R. No. 74451, May 25, 1988
Juanita Salas vs. Hon. Court of Appeals and First Finance & Leasing
Corporation, G.R. No. 76788 January 22, 1990
Metropolitan Bank & Trust Company vs. Court Of Appeals, Golden

Savings & Loan Association, Inc., Lucia Castillo, Magno Castillo and
Gloria Castillo, G.R. No. 88866, February 18, 1991
Page 62 of 102

Caltex (Philippines), Inc. vs. Court of Appeals and Security Bank and
Trust Company, G.R. No. 97753, August 10, 1992
Traders Royal Bank vs. Court of Appeals, Filriters Guaranty Assurance

Corporation and Central Bank of the Philippines, G.R. No. 93397, March
3, 1997
Philippine National Bank vs. Erlando T. Rodriguez and Norma

Rodriguez, G.R. No. 170325, September 26, 2008
People of the Philippines vs. Gilbert Reyes Wagas, G.R. No. 157943,
September 4, 2013
2. Kinds of Negotiable Instruments
Philippine Education Co., inc. vs. Mauricio A. Soriano, et al., G.R. No.
L-22405, June 30, 1971
Firestone Tire & Rubber Company of the Philippines vs. Court of

Appeals and Luzon Development Bank, G.R. No. 113236, March 5, 2001
Philippine National Bank vs. Erlando T. Rodriguez and Norma

Rodriguez, G.R. No. 170325, September 26, 2008
Prudential Bank v. Commissioner of Internal Revenue (CIR), G.R. No.

180390, July 27, 2011
B. Completion and Delivery
Ting Ting Pua vs. S

pouses Benito Lo Bun Tiong and Caroline Siok Ching Teng,
G.R. No. 198660, October 23, 2013
BENJAMIN EVANGELISTA v. SCREENEX, INC., represented by ALEXANDER G.

YU, G.R. No. 211564, November 20, 2017, First Division, SERENO, C.J.:
1. Insertion of Date
2. Completion of Blanks
Quirino Gonzales Logging Concessionaire, Quirino Gonzales and

Eufemia Gonzales vs. C ourt of Appeals and Republic Planters Bank, G.
R. No. 126568, April 30, 2003
Patrimonio vs. Gutierrez, 724 SCRA 636
Page 63 of 102

3. Incomplete and Undelivered Instruments
Ching vs. Nicdao, G.R. No. 141181, April 27, 2007
Ching vs. Nicdao, 522 SCRA 316
4. Complete but Undelivered Instruments
Loreto D. de la Victoria, as City Fiscal of Mandaue City and in his

personal capacity as garnishee vs. Hon. Jose P. Burgos, Presiding
Judge, RTC, Br. XVII, Cebu City, and Raul H. Sesbreño, G.R. No. 111190,
June 27, 1995
San Miguel Corporation vs. Puzon, Jr., G.R. No. 167567, 22 September
2010
Equitable Banking Corporation vs. Special Steel Products, June 13,

2012
Development Bank of Rizal vs. Sim Wei, 245 SCRA 374
ASIA BREWERY, INC. AND CHARLIE S. GO v. EQUITABLE PCI BANK (NOW

BANCO DE ORO – EPCI, INC.), G. R. No. 190432, April 25, 2017, First
Division, SERENO, C.J.
C. Signature
1. Signing in Trade Name
2. Signature of Agent
Philippine Bank of Commerce vs. Jose M. Aruego, G.R. Nos. L-25836-37,

January 31, 1981
3. Indorsement by Minor or Corporation
4. Forgery
s. Eugene Ong,
Westmont Bank (formerly Associated Banking Corp.) v
G.R. No. 132560, January 30, 2002
Associated Bank and Conrado Cruz, vs. Hon. Court of Appeals, and Merle V.
Reyes, doing business under the name and style "Melissa’s RTW", G.R.
No. 89802, May 7, 1992
Page 64 of 102

Ramon K. Ilusorio vs. Court of Appeals, G.R. No. 139130, November 27,
2002
Bank of the Philippine Islands vs. Casa Montessori Internationale and

Leonardo T. Yabut, G.R. No. 149454, May 28, 2004
Samsung Construction Company Philippines, Inc. vs. Far East Bank and
Trust Company and Court of Appeals, G.R. NO. 129015, August 13, 2004
Philippine National Bank vs. FF Cruz and Company, G.R. No. 173259,
July 25, 2011
Philippine Commercial International Bank vs. Balmaceda, G.R. No.

158143, September 21, 2011
Metropolitan Waterworks & Sewerage System vs. Court of Appeals, 143

SCRA 20.
D. Consideration
Travel-On, Inc. vs. Court of Appeals and Arturo S. Miranda, G.R. No.
L-56169, June 26, 1992
RemigioS. Ong vs. People of the Philippines and Court of Appeals, G.R.
No. 139006, November 27, 2000
CharlesLee, Chua Siok Suy, Mariano Sio, Alfonso Yap, Richard Velasco and
Alfonso Co vs. Court of Appeals and Philippine Bank of Communications,
G.R. NO. 117913, February 1, 2002
Quirino Gonzales Logging Concessionaire, Quirino Gonzales and

Eufemia Gonzales vs. C ourt of Appeals and Republic Planters Bank, G.
R. No. 126568, April 30, 2003
Cayanan v. North Star International Travel Inc., G.R. No. 172954, October
5, 2011
E. Accommodation Party
Ang Tiong vs. Lorenzo Ting, doing business under the name & style of
Prunes Preserves MFG., & Felipe Ang, G.R. No. L-26767, February 22,
1968
GSIS vs. Court of Appeals, G.R. No. L-40824, February 23, 1989
Page 65 of 102
People vs. Maniego (148 SCRA 30 [1987])
Town Saving and Loan Bank, Inc. vs. Court of Appeals (223 SCRA 459
[1993])
Gonzales vs. Phillippine Commercial and International Bank, GR No.

180257, February 23, 2011
F. Negotiation
1. Distinguished from Assignment
Sesbreno vs. Court of Appeals (222 SCRA 466 [1993])
2. Modes of Negotiation
Ang Tek Lian vs. Court of Appeals, G.R. No. L-2516, September 25, 1950
Caltex (Philippines), Inc. vs. Court of Appeals and Security Bank and
Trust Company, G.R. No. 97753, August 10, 1992
3. Kinds of Indorsements
G. Rights of the Holder
1. Holder in Due Course
Vicente R. De Ocampo & Co. vs. Anita Gatchalian, et al., G.R. No.
L-15126, November 30, 1961
Juanita Salas vs. Hon. Court of Appeals and First Finance & Leasing
Corporation, G.R. No. 76788 January 22, 1990
Stelco Marketing Corporation vs. Court of Appeals and Steelweld

Corporation of the Philippines, Inc., G.R. No. 96160 June 17, 1992
Bataan Cigar and Cigarette Factory, Inc. vs. the Court of Appeals and
State Investment House, Inc., G.R. No. 93048, March 3, 1994
Atrium Management Corporation vs. Court of Appeals, et al., G.R. No.

109491, February 28, 2001
Page 66 of 102

Cely Yang vs. Hon. Court of Appeals, Philippine Commercial
International Bank, Far East Bank & Trust Co., Equitable Banking
Corporation, Prem Chandiramani and Fernando David, G.R. No. 138074,
August 15, 2003
3. Defenses Against the Holder
RCBC SAVINGS BANK, Petitioner, - versus - NOEL M. ODRADA,

Respondent. (G.R. No. 219037, SECOND DIVISION, October 19, 2016,
CARPIO,J.)
H. Liabilities of Parties
1. Maker
Republic Planters Bank vs. Court of Appeals (216 SCRA 730 [1992])
2. Drawer
Myron C. Papa vs. A.U. Valencia & Co., Inc., et al., G.R. No. 105188.
January 23, 1998
Bank of the Philippine Islands vs. Reynald R. Suarez, G.R. No. 167750,
March 15, 2010
3. Acceptor
Associated Bank and Conrado Cruz, vs. Court of Appeals, and Merle V.
Reyes, doing business under the name and style "Melissa’s RTW", G.R.
No. 89802, May 7, 1992
s. Eugene Ong,
Westmont Bank (formerly Associated Banking Corp.) v
G.R. No. 132560, January 30, 2002
Samsung Construction Company Philippines, Inc. vs. Far East Bank and
Trust Company and Court Of Appeals, G.R. NO. 129015, August 13, 2004
Far Eastern Bank & Trust Company vs. Gold Palace Jewelry Company,
562 SCRA 604.
Areza vs. Express Savings Bank, Inc., 734 SCRA 588
4. Indorser
Page 67 of 102

Ang Tiong vs. Lorenzo Ting, doing business under the name & style of
Prunes Preserves MFG., & Felipe Ang, G.R. No. L-26767, February 22,
1968
Maria Tuazon vs. Heirs of Bartolome Ramos (463 SCRA 408 [2005])
Allied Banking Corporation vs. Bank of the Philippine Islands, GR.

188363, February 27, 2013
Gonzales vs. Rizal Commercial Banking Corporation, 508 SCRA 459
Bank of the Philippine Islands vs. Court of Appeals, 326 SCRA 641
BDO UNIBANK, INC. v. ENGR. SELWYN LAO, doing business under the
name and style "SELWYN F. LAO CONSTRUCTION" AND "WING AN
CONSTRUCTION AND DEVELOPMENT CORPORATION" and
INTERNATIONAL EXCHANGE BANK (now UNION BANK OF THE
PHILIPPINES) (G.R. No. 227005, June 19, 2017, MENDOZA, J.)
5. Warranties
Reyes, doing business under the name and style "Melissa’s RTW," G.R.
No. 89802, May 7, 1992
I. Presentment for Payment
Associated Bank and Conrado Cruz, vs. Hon. Court of Appeals, and
Merle V. Reyes, doing business under the name and style "Melissa’s
RTW," G.R. No. 89802, May 7, 1992
1. Necessity of Presentment for Payment
International Corporate Bank vs. Gueco (351 SCRA 516 [2001])
2. Parties to Whom Presentment for Payment Should Be Made
3. Dispensation with Presentment for Payment
4. Dishonor by Non-Payment
J. Notice of Dishonor
Jaime Dico vs. Court of Appeals and People of the Philippines, G.R. NO.
141669, February 28, 2005
Page 68 of 102
1. Parties to Be Notified
Lao vs. Court of Appeals, G.R. No. 119178, June 20, 1997
Ofelia Marigomen vs. People of the Philippines, G.R. No. 153451, May
26, 2005
Great Asian Sales Center Corporation and Tan Chong Lin vs. the Court
of Appeals and Bancasia Finance and Investment Corporation, G.R. No.
105774, April 25, 2002
2. Parties Who May Give Notice and Dishonor
Eliza T. Tan vs. People of the Philippines, G.R. No. 141466, January 19,
2001
3. Effect of Notice
Bank of the Philippine Islands vs. Reynald R. Suarez, G.R. No. 167750,
March 15, 2010
James Svendsen vs. People of the Philippines, G.R. NO. 175381,

February 26, 2008
4. Form of Notice
Jaime Dico vs. Hon. Court of Appeals and People of the Philippines,
G.R. NO. 141669, February 28, 2005
BANK of the PHILIPPINE ISLANDS v. MENDOZA, G.R. No. 198799, March

20, 2017, First Division, PERLAS-BERNABE, J.
5. Waiver
6. Dispensation with Notice
7. Effect of Failure to Give Notice
K. Discharge of Negotiable Instrument
1. Discharge of Negotiable Instrument
Bank of the Philippine Islands vs. Court of Appeals (326 SCRA 641
[2000])
Page 69 of 102
Cebu International Finance Corporation vs. Court of Appeals (316 SCRA
488 [1999])
Anamer Salazar vs. JY Brothers Marketing Corporation, G.R. No. 171998, October
20, 2010
2. Discharge of Parties Secondarily Liable
3. Right of Party Who Discharged Instrument
4. Renunciation by Holder
L. Material Alteration
1. Concept
Philippine National Bank vs. Court of Appeals, Capitol City Development

Bank, Philippine Bank of Communications, and F. Abante Marketing,
G.R. No. 107508, April 25, 1996
Philippine National Bank vs. Court of Appeals, Capitol City Development

Bank, Philippine Bank of Communications, and F. Abante Marketing,
G.R. No. 107508, April 25, 1996
The International Corporate Bank, Inc. vs. Court of Appeals and

Philippine National Bank, G.R. No. 129910, September 5, 2006
2. Effect of Material Alteration
Metropolitan Bank and Trust Company vs. Renato D. Cabilzo, G.R. No.
154469, December 6, 2006
M. Acceptance
1. Definition
Prudential Bank, Petitioner, v. Intermediate Appellate Court, Philippine

Rayon Mills Inc. and Anacleto R. Chi, G.R. No. 74886, December 8, 1992
Philippine National Bank vs. the Court of Appeals and Philippine

Commercial and Industrial Bank, G.R. No. L-26001, October 29, 1968
2. Manner
Page 70 of 102
New Pacific Timber vs. Seneris (101 SCRA 686 [1980])
Prudential Bank, Petitioner, v. Intermediate Appellate Court, Philippine

Rayon Mills Inc. and Anacleto R. Chi, G.R. No. 74886, December 8, 1992
3. Time for Acceptance
4. Rules Governing Acceptance
N. Presentment for Acceptance
1. Time/Place/Manner of Presentment
Prudential Bank vs. Intermediate Appellate Court, Philippine Rayon Mills

Inc. and Anacleto R. Chi, G.R. No. 74886, December 8, 1992
2. Effect of Failure to Make Presentment
Myron C. Papa vs. A.U. Valencia & Co., Inc., et al. G.R. No. 105188.
January 23, 1998
3. Dishonor by Non-Acceptance
MANUEL UBAS SR. v. WILSON CHAN, G.R. No. 215910, February 6, 2017,
First Division, PERLAS-BERNABE, J.
O. Promissory Notes
Philippine National Bank vs. Concepcion Mining Company, Inc., et al.,

G.R. No. L-16968. July 31, 1962
Perla Compania De Seguros, Inc. vs. the Court of Appeals, Herminio Lim
And Evelyn Lim, G.R. No. 96452, May 7, 1992
Jose L. Ponce de leon vs. Rehabilitation Finance Corporation, G.R. No.

L-24571, December 18, 1970
People of the Philippines vs. Martin L. Romero and Ernesto C.

Rodriguez, G.R. No. 112985, April 21, 1999
Astro Electronics Corp. and Peter Roxas vs. Philippine Export and
Foreign Loan Guarantee Corporation, G.R. No. 136729, September 23,
2003
Page 71 of 102

P. Checks
1. Definition
BPI Card Corporation vs. Court of Appeals, 296 SCRA 260 (1998)
2. Kinds
Reyes, doing business under the name and style "Melissa’s RTW," G.R.
No. 89802, May 7, 1992
State Investment House vs. IAC (175 SCRA 310 [1989])
People vs. Nitafan, G.R. No. 75954, October 22, 1992
Tan vs. Court of Appeals, G.R. No. 108555, December 20, 1994
Teddy G. Pabugais vs. Dave Sahijiwani, G.R. No. 156846, February 23,
2004
Bank of the Philippine Islands vs. Roxas, 536 SCRA 168
Philippine Commercial International Bank vs. Balmaceda, G.R. No.

158143, September 21, 2011
3. Presentment for Payment
New Pacific Timber vs. Seneris, G.R. No. 41764, December 19, 1980
Philippine Airlines vs. Court of Appeals, G.R. No. 49188, January 30,
1990
Bishop of Malolos vs. Intermediate Appellate Court, G.R. No. 72110,

November 16, 1990
Fortunado vs. Court of Appeals (196 SCRA 26 [1991])
Tibajia, Jr. vs. Court of Appeals, G.R. No. 100290, June 4, 1993
Far East Bank & Trust Company vs. Diaz Realty, Inc., G.R. No. 138588,
August 23, 2001
International Corporate Bank vs. Sps. Francis S. Gueco and Ma. Luz E.
Gueco, G.R. No. 141968, February 12, 2001
Page 72 of 102
Security Bank and Trust Company vs. Rizal Commercial Banking
Corporation, G.R. No. 170984, 30 January 2009
a. Time
International Corporate Bank vs. Sps. Francis S. Gueco and Ma. Luz
E. Gueco, G.R. No. 141968, February 12, 2001
b. Effect of Delay
International Corporate Bank vs. Sps. Francis S. Gueco and Ma. Luz
E. Gueco, G.R. No. 141968, February 12, 2001
Philippine National Bank vs. Seeto, 91 Phil. 756
Q. Miscellaneous Topics
1. Negotiable instrument as mode of payment
New Pacific Timber vs. Seneris, 101 SCRA 686 (1980) (See however, Tibajia, Jr,
vs. Court of appeals, infra)
Philippine Airlines vs. Court of Appeals, 181 SCRA 557 (1990)
Roman Catholic Bishop of Malolos vs. Intermediate Appelate Court, 191 SCRA
411 (1990)
Fortunado vs. Court of Appeals, 196 SCRA 26 (1991)
Tibajia, jr. vs. Court of Appeals, 223 SCRA 163 (1993)
Tan vs. Court of Appeals, 239 SCRA 310 (1994)
Papa vs. A.U Valencia & Co., Inc. vs. 284 SCRA 643 (1998)
BPI Express Card Corporation vs. Court of Appeals, 296 SCRA 260 (1998)
Cebu International Finance Corporation vs. Court of Appeals, 316 SCRA 488
(1999)
Bank of the Philippine Islands vs. Court of Appeals, 326 SCRA 641 (2000)
International Corporate Bank vs. Gueco, 351 SCRA 516 (2001)
Page 73 of 102

East Bank & Trust Company vs. Diaz Realty, Inc., 363 SCRA 596 (2001)
Pabugais vs. Sahijiwani, 423 SCRA 596 (2004)
Security Bank and Trust Company vs. Rizal Commercial Banking Corporation 577
SCRA 407 (2009)
2. Liabilities of Parties under B.P. 22
Danao vs. Court of Appeals, 358 SCRA 450 (2001)
Bautista vs. Court of Appeals, 360 SCRA 618 (2001)
Tan vs. Mendez, Jr., 383 SCRA 202 (2002)
Recuerdo vs. People of the Philippines, 395 SCRA 638 (2003)
Yu Oh vs. Court of Appeals, 403 SCRA 300 (2003)
3. Clearing Rules
Banco de Oro vs. Equitable Banking Corp, 157 SCRA 188 (1988)
Home Bankers Savings and Trust Company vs. Court of Appeals, 318 SCRA 558
(1999)
Allied Banking Corporation vs. Court of Appeals, 321 SCRA 563 (1999)
Metropolitan Bank & Trust Company vs. Court of Appeals, 579 SCRA (2009)
Page 74 of 102

CASE AND COURSE OUTLINE IN MERCANTILE LAW REVIEW II
Dean Nilo T. Divina
I. Intellectual Property Code
A. Intellectual Property Rights in General
1. Differences between Copyrights, Trademarks and Patent
Pearl & Dean (Philippines), Inc. vs. Shoemart, Inc., G.R. No. 148222, August 15, 2003
B. Patents
1. Patentable Inventions
Jessie Ching vs. William Salinas, et. al., G.R. No. 161295, June 29, 2005
2. Ownership of a Patent
a. Right to a Patent
Pearl & Dean (Philippines), Inc. vs. Shoemart, Inc., G.R. No. 148222, ibid
3. Rights Conferred by a Patent
Domiciano Aguas vs. Conrado De Leon, G.R. No. L-32160, January 30, 1982
Manzano vs. Court of Appeals, G.R. No. 113388, September 5, 1997
Precision Systems, Inc.,vs. Court of Appeals, G.R. No. 118708, February 2, 1998
Del Rosario vs. Court of Appeals, 255 SCRA 152 (1996)
Smith Kline Beckman Corporation vs. Court of Appeals, G.R. No. 126627, August 14,
2003
Philippine Pharmawealth, Inc.,vs. Pfizer, Inc., G.R. No. 167715, November 17, 2010
4. Patent Infringement
a. Tests in Patent Infringement
i. Literal Infringement
Page 75 of 102

Pascual Godines vs. Court of Appeals, G.R. No. 97343, September 13, 1993
ii. Doctrine of Equivalents
Pascual Godines vs. Court of Appeals, G.R. No. 97343, ibid
Smith Kline Beckman Corporation vs. Court of Appeals, G.R. No. 126627, ibid
b. Defenses in Action for Infringement
Rosario Maguan vs. Court of Appeals, G.R. L-45101, November 28, 1986
5. Licensing
Prince vs. United Laboratories, Inc.,166 SCRA 133 (1988)
C. Trademarks
Pribhdas J. Mirpuri vs. Court of Appeals, G.R. No. 114508, November 19, 1999
1. Acquisition of Ownership of Mark
Elidad C. Kho, doing business under the name and style of KEC Cosmetics Laboratory
vs. Court of Appeals, et. al., G.R. No. 115758, March 19, 2002
Air Philippines Corporation v. Pennswell, Inc., 540 SCRA 215 (2007).
E.Y. Industrial Sales vs. Shien Dar Electricity and Machinery Co. , G.R. No. 184850, 20
October 2010
Superior Commercial Enterprises, Inc. vs. Kunnan Enterprises Ltd. and Sports Concept
& Distributor, Inc., G.R. No. 169974, April 20, 2010
Birkenstock Orthopaedie Gmbh and Co. Kg vs. Philippine Shoe Expo Marketing
Corporation, G.R. No. 194307, November 20, 2013
Taiwan Kolin Corporation, LTD. vs. Kolin Electronics Co., Inc.,G.R. No. 209843, March
25, 2015
2. Non-Registrable Marks
Lyceum of the Philippines vs. Court of Appeals, 219 SCRA 610 (1993)
3. Prior Use of Mark as a Requirement

Page 76 of 102
Mattel, Inc. vs. Emma Francisco, et al., 560 SCRA 504 (2008)
4. Tests to Determine Confusing Similarity between Marks
a. Dominancy Test
Amigo Manufacturing, Inc. vs. Cluett Peabody Co., Inc., G.R. No. 139300, March 14,
2001
Societe Des Produits Nestle, S.A. vs. Court of Appeals and CFC Corporation, G.R. No.
112012, April 4, 2001
McDonald’s Corporation vs. L.C. Big Mak Burger, Inc., G.R. No. 143993, August 18,
2004
McDonald’s Corporation vs. Macjoy Fastfood Corporation, G.R. No. 166115, February
2, 2007
Prosource International, Inc. vs. Horphag Research Management SA, G.R. No. 180073,
November 25, 2009
Berris Agricultural Co., Inc. vs. Norvy Abyadang, G.R. No. 183404, October 13, 2010
Dermaline, Inc. vs. Myra Phamaceuticals, Inc., G.R. No. 190065, August 1, 2010
Soceite Des Produits Nestle, S.A. vs. Dy, Jr., G.R. No. 172276, August 8, 2010
Sketchers USA vs. Inter Pacific Industrial Trading Corporation, GR No. 164321, March
28, 2011
b. Holistic Test
Fruit of the Loom, Inc. vs. Court of Appeals, G.R. No. L-32747, November 29, 1984
Emerald Garment Manufacturing Corporation vs. Court of Appeals, G.R. No. 100098,
December 29, 1995
Philip Morris, Inc. vs. Fortune Tobacco Corporation, G.R. No. 158589, June 27, 2006
Victorio Diaz vs. People of the Philippines, G.R. No. 180677, February 18, 2013
Page 77 of 102
c. Doctrine of unrelated goods
Hickok Manufacturing, Co., Inc. vs. Court of Appeals, G.R. No. L-44707, August 31,
1982
Faberge, Inc. vs. Intermediate Appellate Court, G.R. No. 71189, November 4, 1992
Canon Kabushiki Kaisha vs. Court of Appeals, G.R. No. 120900, July 20, 2004
Mighty Corporation and La Campana Fabrica De Tabaco, Inc. vs. E. & J. Gallo Winery
and the Andresons Group, Inc., G.R. No. 154342, July 14, 2004
5. Well-Known Marks
Pribhdas J. Mirpuri vs. Court of Appeals, G.R. No. 114508, ibid
Mighty Corporation and La Campana Fabrica De Tabaco, Inc. vs. E. & J. Gallo Winery
and the Andresons Group, Inc., G.R. No. 154342, July 14, 2004
Sehwani, Inc. vs. In-N-Out Burger, Inc., G.R. No. 171053, October 15, 2007
Fredco Manufacturing Corporation vs. President and Fellows of Harvard College, GR

No. 185917, June 1, 2011
6. Rights Conferred by Registration
Berris Agricultural Co., Inc. vs. Norvy Abyadang, G.R. No. 183404, ibid
7. Infringement and Remedies
Conrad and Company, Inc. vs. Court of Appeals, 246 SCRA 691 (1995)
Shangri-la International Hotel Management Ltd., et al. vs. Court of Appeals, 359 SCRA
273 (2001)
Melbarose R. Sasot and Allandale R. Sasot vs. People of the Philippines, G.R. No.
143193, June 29, 2005
Levi Strauss & Co., Levi Strauss (Phils.) Inc. vs. Clinton Apparelle, Inc., G.R. No.
138900, September 20, 2005
Tanduay Distillers, Inc.,vs. Ginebra San Miguel, Inc., G.R. No. 164324, August 14, 2009
Page 78 of 102

a. Trademark Infringement
Del Monte Corporation and Philippine Packing Corporation vs. Court of Appeals, G.R.
No. L-78325, January 25, 1990
Asia Brewery, Inc., vs. Court of Appeals and San Miguel Corporation, G.R. No. 103543,
July 5, 1993
Pearl & Dean (Philippines) Inc. vs. Shoemart, Inc., G.R. No. 148222, ibid
William C. Yao, Sr., et. al. vs. People of the Philippines, G.R No. 168306, June 19, 2007
Ong vs. People of the Philippines, G.R. No. 169440, November 23, 2011
Republic Gas Corporation (REGASCO), et. al. vs. Petron Corporation, et. al., G.R. No.
194062, June 17, 2013
Century Chinese Medicine Co., et. al. vs. People of the Philippines, G.R. No. 188526,
November 11, 2013
8. Unfair Competition
Asia Brewery, Inc. vs. Court of Appeals and San Miguel Corporation, G.R. No. 103543,
ibid
McDonald’s Corporation vs. L.C. Big Mak Burger, Inc., G.R. No. 143993, ibid
Sony Computer Entertainment, Inc. vs. Supergreen, Inc., 518 SCRA 750 (2007)
Coca-Cola Bottlers Philippines, Inc.,(CCBPI), Naga Plant vs. Quintin Gomez, et, al.,
G.R. No. 154491, November 14, 2008
Republic Gas Corporation (REGASCO), et. al. vs. Petron Corporation, et. al., G.R. No.
194062, ibid
Shang Properties Realty Corporation (formerly the Shang Grand Tower Corporation)
and Shang Properties Inc., (formerly EDSA Properties Holdings, Inc.) vs. St
Francis Development Corporation, G.R. No. 190706, July 21, 2014
Roberto Co vs. Keng Huan Jerry Yeung and Emma Yeung, G.R. No. 212705,
September 10, 2014
9. Trade Names or Business Names
Page 79 of 102

Converse Rubber Corporation vs. Universal Rubber Products, Inc., G.R. No. L-27906,
January 8, 1987
Coffee Partners vs. San Francisco Coffee and Roastery, Inc., G.R. No. 169504, March
3, 2010
Fredco Manufacturing Corporation vs. President and Fellows of Harvard College, GR

No. 185917, ibid
Ecole De Cuisine Manille (Cordon Bleu of the Philippines), Inc. vs. Renaus Cointreau &
Cie and Le Cordon Bleu Int’l, B.V., G.R. No. 185830, June 5, 2013
D. Copyrights
Manly Sportwear Manufacturing, Inc. vs. Dadodette Enterprises and/or Hermes Sports
Center, G.R. No. 165306, September 20, 2005
1. Basic Principles, Sections 172.2, 175 and 181
2. Copyrightable Works
United Features vs. Munsingwear Creation, 179 SCRA 260 (1989)
3. Non-Copyrightable Works
Francisco Joaquin, Jr. vs. Franklin Drilon, et. al., G.R. No. 108946, January 28, 1999
Pearl & Dean (Philippine), Inc. vs. Shoemart, Inc., G.R. No. 148222, ibid
4. Rights of Copyright Owner
Columbia Pictures, Inc. vs. Court of Appeals, 261 SCRA 144 (1996)
5. Limitations on Copyright
ABS-CBN Broadcasting Corporation vs. Philippine Multi-Media System, Inc., G.R. Nos.
175769-70, January 19, 2009
GMA Network Inc., vs. Central CATV Inc., G.R. No. 176694, July 18, 2014
a. Copyright Infringement
Filipino Society of Composers, Authors and Publishers, Inc. vs. Benjamin Tan, G.R. No.
L-36402, March 16, 1987
Page 80 of 102
Columbia Pictures, Inc., et. al. vs. Court of Appeals, G.R. No. 110318, August 28, 1996
Pacita Habana, et. al. vs. Felicidad Robles and Goodwill Trading Co., Inc., G.R. No.
131522, July 19, 1999
NBI-Microsoft Corporation vs. Judy Hwang, et. al., G.R. No. 147043, June 21, 2005
II. Transportation Laws
1. Definition of common carrier
a. Carrying of persons or goods or both may be the

principal or ancillary activity
Pedro De Guzman vs. Court of Appeals, G. R. No. L-47822, December 22, 1988
b.The common carrier need not be the owner ( of the vessel ) used to
consummate contract of carriage
Cebu Salvage Corporation vs. Philippine Home Assurance Corporation, G.R. No.
150403, January 25, 2007
2.Examples of common carrier
a. Pipeline operator
First Philippine Industrial Corporation vs. Court of Appeals, G.R. No. 125948, December
29, 1989
b.customs broker
A.F. Sanchez Brokerage Inc. vs. Court of Appeals, G.R. No. 147079, December 21,
2004
Loadmasters Customs Services, Inc. vs. Glodel Brokerage Corporation, GR No.

179446, January 10, 2011
c.Freight forwarder that contracts delivery of the goods
Unsworth Transport International (Phils.) vs. Court of Appeals, G.R. No. 166250, July
26, 2010
Page 81 of 102

d. school bus operator despite limited clientele
Spouses Perena vs. Spouses Nicolas, GR No. 157917, August 29, 2012
2.Distinctions between common carrier and private carrier
Philippine American General Insurance Company vs. PKS Shipping Company, G.R. No.
149038, April 9, 2003
1. Diligence Required of Common Carriers
a. Extra-ordinary diligence required/ Presumption of fault in

case of loss or damage to goods or death or injury to
passengers
Heirs of Amparo de los Santos vs. Court of Appeals, 186 SCRA 649 (1990)
American Home Assurance Company vs. The Court of Appeals, G.R. No. 94149, May
5, 1992
Philippines Airlines, Inc. vs. Court of Appeals, 226 SCRA 423 (1993)
Macam vs. Court of Appeals, 313 SCRA 77 (1999)
Virgines Calvo doing business under the name and style Transorient Container
Terminal Services, Inc. vs. UCPB General Insurance Co., Inc., G.R. No. 148496,
March 19, 2002
Vector Shipping Corp. and Francisco Soriano vs. Adelfo B. Macasa 559 SCRA 97
(2008)
R Transport Corporation vs. Pante, G.R. No. 162104, September 15, 2009
Nedlloyd Lijnen B.V. Rotterdam and the East Asiatic Co., LTD. vs. Glow Laks
Enterprises, LTD., G.R. No. 156330, November 19, 2014
Eastern Shipping Lines, Inc. vs. BPI/MS Insurance Corporation and Mitsui Insurance
Co., Ltd., G.R. No. 182864, January 12, 2015
Asian Terminals vs. Simon Enterprises, Inc. GR no. 177116, February 27 2013
3. Liabilities of Common Carriers
Page 82 of 102

Ma. Luisa Benedicto vs. Hon. Intermediate Appellate Court, G.R. No. 70876, July 19,
1990
Cogeo Cubao Operators and Drivers Association vs. Court of Appeals, 207 SCRA 243
(1992)
Spouses Cesar & Suthira Zalamea vs. Court of Appeals, G.R. No. 104235 November
18, 1993
Philippine Airlines, Inc. vs. Court of Appeals, G.R. No. 119641, May 17, 1996
Philippine Airlines, Inc. vs. Court of Appeals, G.R. No. 120262, July 17, 1997
Philippine General Insurance, Co. Inc. vs. Court of Appeals, 273 SCRA 262
(1997)
Carlos Singson vs. Court of Appeals, G.R. No. 119995, November 18, 1997)
Loadstar Shipping Co., Inc. vs. Court of Appeals, G.R. No. 131621, September 28,
1999
Equitable Leasing Corporation vs. Lucita Suyom et al., G.R. No. 143360, September 5,
2002
Light Rail Transit Authority & Rodolfo Roman vs. Marjorie Natividad, G.R. No. 145804,
February 6, 2003
Singapore Airlines Limited vs. Fernandez, G.R. No. 142305, December 10, 2003
Cathay Pacific Airways, Ltd., vs. Spouses Daniel Vazquez And Maria Luisa Madrigal
Vazquez, G.R. No. 150843, March 14, 2003
William Tiu, doing business under the name and style of “D’ Rough Riders” vs. Pedro A.
Arriesgado, G.R. No. 138060, September 1, 2004
Philippine Airlines Inc. vs. Court of Appeals, G.R. No. 123238, September 22, 2008
The Heirs of the late Ruben Reinoso, Sr. vs. Court of Appeals, GR No. 116121, July
18, 2011
Heirs of Jose Marcial Ochoa vs. G&S Transport Corporation, G.R. No. 170071, March
9, 2011 as affirmed in the July 16, 2012 decision
Page 83 of 102

Loadstar Shipping Company, Inc., and Loadstar International Shipping Co., Inc. vs.
Malayan Insurance Co., Inc., G.R. No. 185565, November 26, 2014
B. Vigilance over Goods
1. Exempting Causes
Mauro Ganzon vs. Court of Appeals, G.R. No. L-48757, May 30, 1988
Central Shipping Company, Inc. v s. Insurance Company of North America,

G.R. No. 150751, September 20, 2004
Western Shipping Agency, Inc., vs. National Labor Relations Commission,

253 SCRA 405 (1996)
Virgines Calvo doing business under the name and style Transorient Container
Terminal Services, Inc. vs. UCPB General Insurance Co., Inc., G.R. No.
148496, March 19, 2002
a. Requirement of Absence of Negligence
Bachelor Express, Incorporated vs. The Honorable Court of Appeals (Sixth

Division), G.R. No. 85691, July 31, 1990
Loadstar Shipping Co., Inc., vs. Court of Appeals, G.R. No. 131621, September 28,
1999
Smith Bell Dodwell Shipping Agency Corporation vs. Catalino Borja, G.R. No. 143008,
June 10, 2002
b. Absence of Delay
Aniceto Saludo, Jr. vs. Hon. Court of Appeals, G.R. No. 95536, March 23, 1992
Philippine Air Lines vs. Florante Miano, G.R. No. 106664, March 8, 1995
c. Due Diligence to Prevent or Lessen the Los
Central Shipping Company, Inc. v s. Insurance Company of North America, G.R. No.
150751, September 20, 2004
Page 84 of 102
2. Contributory Negligence
3. Duration of Liability
a. Delivery of Goods to Common Carrier
Mauro Ganzon vs. Court of Appeals, G.R. No. L-48757, May 30, 1988
b. Actual or Constructive Delivery
Lu Do & Lu YM Corporation vs. I.V. Binamira, G.R. No. L-9840, April 22, 1957
Compañia Maritima vs. Insurance Company of North America, G.R. No. L-18965,
October 30, 1964
Westwind Shipping Corporation vs. UCPB General Insurance Co., G.R. No. 200289,
November 25, 2013
4. Stipulation for Limitation of Liability
a. Void Stipulations
Sweet Lines, Inc. vs. Hon. Bernardo Teves, Presiding Judge, CFI of Misamis Oriental,
Branch VII, G.R. No. L-37750, May 19, 1978
b. Limitation of Liability to Fixed Amount

c. Limitation of Liability in Absence of Declaration of Greater Value
St. Paul Fire & Marine Insurance Co. vs. Macondray & Co, Inc., et al., G.R. No.
L-27796, March 25, 1976
Eastern and Australian Steamship Co., Ltd. vs. Great American Insurance Co.,
G.R. No. L-37604 October 23, 1981
5. Liability for Baggage of Passengers
a. Checked-In Baggage
Page 85 of 102

C. Safety of Passengers
Victory Liner, Inc. vs. Rosalito Gammad, G.R. No. 159636, November 25, 2004
Philippine National Railways vs. The Honorable Court of Appeals, G.R. No. L-55347,
October 4, 1985
Clemente Briñas vs. The People of the Philippines, G.R. No. L-30309, November 25,
1983
1. Duration of Liability
a. Waiting for Carrier or Boarding of Carrier
Dangwa Transportation Co., Inc. vs. Court of Appeals, G.R. No. 95582, October 7, 1991
b. Arrival at Destination
La Mallorca vs. Honorable Court of Appeals, G.R. No. L-20761, July 27, 1966
Aboitiz Shipping Corporation vs. Hon. Court of Appeals, Eleventh Division, G.R.
No. 884458, November 6, 1989
2. Liability for Acts of Others
a. Employees
Antonia Maranan vs. Pascual Perez, et al, G.R. No. L-22272, June 26, 1967
Leopoldo Poblete vs. Donato Fabros, G.R. No. L-29803, September 14, 1979
Sabena Belgian World Airlines vs. Honorable Court of Appeals G.R. No. 82068. March
31, 1989
b. Other Passengers and Strangers
Jose Pilapil vs. Hon. Court of Appeals, G.R. No. 52159, December 22, 1989
3. Exempting causes
a. Force majeure
Alberta Yobido vs. Court of Appeals, G.R. No. 113003, October 17, 1997
b. when force majeure does not apply

Page 86 of 102
Fortune Express, Inc., vs. Court of Appeals, G.R. No. 119756, March 18, 1999
4. Extent of Liability for Damages
Philippine Airlines, Inc. vs. Hon. Court of Appeals, G.R. No. 54470, May 8, 1990
Pan American World Airways, Inc. vs. Intermediate Appellate Court, G.R. No. 68988,
June 21, 1990
China Airlines Limited vs. Court of Appeals, 211 SCRA 897 (1992)
Sulpicio Lines, Inc., vs. The Honorable Court of Appeals, G.R. No. 113578, July 14,
1995
Collin A. Morris vs. Court of Appeals, G.R. No. 127957, February 21, 2001
Smith Bell Dodwell Shipping Agency Corp. vs. Borja, 383 SCRA 341 (2002)
Victory Liner, Inc. vs. Rosalito Gammad, G.R. No. 159636, November 25, 2004
D. Bill of Lading
D.1 Definition
Unsworth Transport International Phils., Inc. vs. Court of Appeals, G.R. No.
166250, July 26, 2010
d.2 Three-Fold Character
Keng Hua Paper Products Co., Inc. vs. Court of Appeals, 286 SCRA 257 (1998)
Lorenzo Shipping Corp. vs. Chubb and Sons, Inc., G.R. No. 147724, June 8, 2004
d.3 parties
Everett Steamship Corporation vs. Court of Appeals, 297 SCRA 496 (1998)
d.4 kinds of bill of lading
Magellan Manufacturing Marketing Corporation vs. Court of Appeals, G.R. No.

95529, August 22, 1991
Page 87 of 102

d.5 stipulations in a bill of lading
Provident Insurance Corp. v s. Court of Appeals, G.R. No. 118030, January 15,
2004
2. Delivery of Goods
a. Period of Delivery
Maersk Line vs. Court of Appeals, 222 SCRA 108 (1993)
b. Delivery Without Surrender of Bill of Lading
National Trucking and Forwarding Corporation vs. Lorenzo Shipping Corporation, G.R.
No. 153563, February 07, 2005.
3.Requirements/Conditions precedent for Filing Claims ( Coastwise or inter-island

commerce )
a. Notice requirement
Philippine American General Insurance Co., Inc. and Tagum Plastics, Inc. vs.
Sweet Lines, Inc., G.R. No. 87434 August 5, 1992
Lorenzo Shipping Corp. vs. Chubb and Sons, Inc., G.R. No. 147724, June 8, 2004
Aboitiz Shipping Corporation vs. I nsurance Company of North America, G.R. No.
168402, August 6, 2008
.R. No.
Ucpb General Insurance Co., Inc., vs. Aboitiz Shipping Corporation, et. al., G
168433, February 10, 2009
c. Period to file Actions
Loadstar Shipping Co., Inc. vs. Court of Appeals, 315 SCRA 339 (1999)
Federal Express Corporation v s. American Home Assurance Company, G.R. No.

150094, August 18, 2004
E. Maritime Commerce
1. Charter Parties
Lintonjua Shipping Company, Inc. vs. National Seamen Board, 176 SCRA
189 (1989)
Page 88 of 102
National Food Authority vs. Court of Appeals, G.R. No. 96453, August 4, 1999
Caltex Philippines, Inc. vs. Sulpicio Lines, Inc., et. al., G.R. No. 131166, September 30,
1999
a. Bareboat/Demise Charter
Shipping Company, Inc., vs. National Seamen Board, 176 SCRA 189 (1989)
b. Time Charter
Oceaneering Contractrors (Phils), Inc. vs. Nestor Barreto, doing business as NNB
Lighterage , G.R. No. 184215, February 9, 2011
c. Voyage/Trip Charter
Cebu Salvage Corporation vs. Philippine Home Assurance Corporation, G.R. No.
150403, January 25, 2007
2. Liability of Ship Owners and Shipping Agents
Chua Yek Hong vs. Intermediate Appellate Court, G.R. No. 74811, September 30, 1988
Macondray & Co., Inc. vs. Provident Insurance Corp., 445 SCRA 644 (2004)
Centennial Transmarine, Inc. et al. vs. Ruben G. Dela Cruz, 563 SCRA 210 (2008)
3.Limited liability rule/hyphotecary nature of maritime law
Aboitiz Shipping Corporation vs. General Accident Fire and Life Assurance Corporation
Ltd., 217 SCRA 359 (1993)
a. Exceptions to Limited Liability
Luzon Stevedoring Corporation vs. Court of Appeals, G.R. No. L-58897,

December 3, 1987
Page 89 of 102

Philippine American General Insurance Co. vs. Court of Appeals, 273 SCRA 262
(1997)
Dela Torre vs. Court of Appeals, G.R. No. 160088, July 13, 2011
3. Accidents and Damages in Maritime Commerce
R.V. Marvan Freight, Inc. vs. Court of Appeals, 424 SCRA 596 (2004)
a. Collisions
Far Eastern Shipping Company vs. Court of Appeals, G.R. No. 130068, October 1,
1998
4. Carriage of Goods by Sea Act
a. Application
National Development Company vs. Court of Appeals, G.R. No. L-49469, August 19,
1988
Sea-Land Service, Inc. vs. Intermediate Appellate Court, G.R. No. 75118, August 31,
1987
Philippine First Insurance Co. Inc. vs. Wallem Phils. Shipping, Inc., G.R. No. 165647,
March 26, 2009
Insurance Company of North America vs. Asian Terminals, Inc., G.R. No. 180784,
February 15, 2012
b.Concept of loss or damage
Domingo Ang vs. American Steamship Agencies, Inc., G.R. No. L-22491, January 27,
1967
Mitsui O.S.K. Lines Ltd. vs. Court of Appeals, G.R. No. 119571, March 11, 1998
d. Conditions for filing of claim in case of loss or damage
c.1 Notice of Loss or Damage
Belgian Overseas Chartering and Shipping N.V. vs. Philippine First Insurance Co., Inc.,
G.R. No. 143133, June 5, 2002
Page 90 of 102

Wallem Philippines Shipping vs. SR Farms, GR No. 161849, July 9, 2010
Asian Terminals Inc. vs. Philam Insurance Co. G.R. No. 181262 , July 24, 2013
c.2 Period of Prescription
Union Carbide Philippines, Inc. vs. Manila Railroad Co., G.R. No. L-27798, June 15,
1977
Ang vs. Compañia Maritima, 133 SCRA 600 (1984)
Dole Philippines, Inc. vs. Maritime Company of the Philippines, G.R. No. L-61352,
February 27, 1987
Loadstar Shipping Co., Inc. vs. Court of Appeals, G.R. No. 131621 September 28, 1999
Mayer Steel Pipe Corporation vs. Court of Appeals, G.R. No. 124050 June 19, 1997
Mitsui O.S.K. Lines Ltd., represented by Magsaysay Agencies, Inc. vs. Court of
Appeals, G.R. No. 119571, March 11, 1998
New World International Development Corporation vs. NYK-FilJapan Shipping

Corporation, GR No. 171468, August 24, 2011
d. Limitation of Liability
Eastern Shipping Lines, Inc. vs. Intermediate Appellate Court, G.R. No. L-69044, May
29, 1987
Belgian Overseas Chartering and Shipping N.V. vs. Philippine First Insurance Co., Inc.,
G.R. No. 143133, June 5, 2002
Philam Insurance Company vs. Heung Ah Shipping Corporation and Wallem Shipping
Inc., G.R. No. 1877l and G.R. No. 187812, July 23, 2014
F. Air Transportation
f.1 The nature of an airline’s contract of carriage
British Airways vs. Court of Appeals, G.R. No. 121824, January 29, 1998
Collin A. Morris vs. Court of Appeals, G.R. No. 127957, February 21, 2001
Page 91 of 102

f.2 cases of liability of air carrier
Philippine Airlines, Inc. vs. Ramos, 207 SCRA 461 (1992)
Sarreal, Sr. vs. Japan Airlines Co. Ltd., 207 SCRA 359 (1992)
Pan American World Airways, Inc. vs. Intermediate Appellate Court, G.R. No. 68988,
June 21, 1990
British Airways vs. Court of Appeals, 258 SCRA 450 (1996)
G.The Warsaw Convention
1. Applicability
Philippine Airlines Inc. vs. Hon. Adriano Savillo, et. al., G.R. No. 149547, July 4, 2008
2.Non-applicability
KLM Royal Dutch Airlines vs. Court of Appeals, 65 SCRA 237 (1975)
Alitalia vs. I ntermediate Appellate Court, G.R. No. 71929, December 4, 1990
3. Limitation of Liability
4. Jurisdictional rules
Lhuillier vs. British Airways, G.R. No. 171092, March 15, 2010
a. Liability to Passengers
Lufthansa German Airlines vs. Court of Appeals, G.R. No. 83612, November 24, 1994
b. Liability for Checked Baggage
Philippine Airlines Inc. vs. Court of Appeals, G.R. No. 119706, March 14, 1996
3. Willful Misconduct
Sabena World Airlines vs. Court of Appeals, G.R. No. 104685, March 14, 1996
G. Miscellaneous Topics
1. Motor Vehicles
Tiu vs. Arriesgado, 437 SCRA 426 (2004)

Page 92 of 102
Villanueva vs. Domingo, 438 SCRA 485 (2004)
PCI Leasing & Finance Inc. vs. UCPB General Insurance Co. Inc., 557 SCRA 141
(2008)
Mercado AG. Cadiente vs. Bithuel Macas 571 SCRA 105 (2008)
Mariano C. Mendoza and Elvira Lim vs. Spouses Leonora J. Gomez and Gabriel V.
Gomez, G.R. No. 160110, June 18, 2014
2. Arrastre Services
International Container Terminal Services, Inc. vs. Prudential Guarantee & Assurance
Co., Inc., 320 SCRA 244 (1999)
Westwind Shipping Corporation vs. UCPB General Insurance Co., G.R. No. 200289,
November 25, 2013
Asian Terminals Inc. vs. First Lepanto-Taisho Insurance Corporation, G.R. No. 185964,
June 16, 2014
3. Public Utilities
Kilusang Mayo Uno Labor Center vs. Garcia, 239 SCRA 386 (1994)
III.Insurance Laws
B. Concept of Insurance
Philippine Health Care Providers, Inc., vs. Commissioner of Internal Revenue, G.R. No.
167330, September 18, 2009
a.1 Interpretation of insurance contract
Philamcare Health System vs. Court of Appeals (379 SCRA 356 [2002])
Lalican vs. Insular Life Assurance Company, Ltd. (597 SCRA 159 [2009])
Alpha Insurance and Surety Co. vs. Castor, GR No. 198174, September 2, 2013
Page 93 of 102

C. Elements of an Insurance Contract
Fortune Medicare Inc. vs Amorin, G.R. No. 195872, March 12, 2014
D. Characteristics/Nature of Insurance Contracts
Heirs of Loreto C. Maramag vs. Eva Verna De Guzman Maramag, et al., G.R. No.
181132, June 5, 2009
Tibay vs. Court of Appeals (257 SCRA 126 [1996])
E. Classes
1. Marine
Isabela Roque, doing business under the name and style of Isabela Roque Timber
Enterprises, et al., vs. The Intermediate Appellate Court, et al., G.R. No.
L-66935, November 11, 1985
Cathay Insurance Co., vs. Court of Appeals, et al. , G.R. No. L-76145, June 30, 1987
Filipino Merchants Insurance Co., Inc., vs. Court of Appeals, et al., G.R. No. 85141,
November 28, 1989
Choa Tiek Seng, doing business under the name and style of Seng’s Commercial
Enterprises vs. Court of Appeals, et al., G.R. No. 84507, March 15, 1990
Keppel Cebu Shipyard, Inc. vs. Pioneer Insurance and Surety Corporation, 601
SCRA 96
Mayer Steel Pipe Corp. vs. Court of Appeals and South Sea Surety (274 SCRA 432
[1997])
2. Fire
Development Insurance Corporation vs. Intermediate Appellate Court, et al., G.R. No.
L-71360, July 16, 1986
Pacific Banking Corp. vs. Court of Appeals and Oriental Assurance Corporation (168
SCRA 1 [1988])
Philippine Home Assurance Corporation vs. Court of Appeals, G.R. No. 106999, June
20, 1996
Page 94 of 102
3. Casualty
Fortune Insurance and Surety Co., Inc. vs. Court of Appeals and Producers Bank of the
Philippines, G.R. No. 115278, May 23, 1995
Coquia vs. Fieldmen’s Insurance Company, Inc., 26 SCRA 178
Far Eastern Surety & Trust Company, Inc. vs. Misa, 25 SCRA 662
Finman General Assurance Corporation vs. Court of Appeals, 213 SCRA 493
4. Suretyship
First Lepanto-Taisho Insurance Corporation vs. Chevron Philippines, Inc., G.R. No.
177839, January 18, 2012
National Power Corporation vs. Court of Appeals, et al., G.R. No. L-43706, November
14, 1986
Finman General Assurance Corporation vs. William Inocencio, et al., G.R. No.
90273-75, November 15, 1989
Country Bankers Insurance Corporation vs. Antonio Lagman, G.R. No. 165487, July 13,
2011
5. Life
Re: Claims for Benefits of the Heirs of the Late Mario vs. Chanliongco, Adm. Matter No.
I90-RET., October 18, 1977
The Insular Life Assurance Company, Ltd., vs. Carponia T. Ebrado and Pascuala Vda.
De Ebrado, G.R. No. l-44059, October 28, 1977
Great Pacific Life Assurance Company vs. Court of Appeals, 89 SCRA 543 (1979)
Tan vs. Court of Appeals, 174 SCRA 403 (1989)
Sun Insurance Office, Ltd. vs. Court of Appeals, G.R. No. 92383, July 17, 1992
Heirs of Loreto C. Maramag vs. Maramag, GR No. 181132, June 5, 2009
6. Compulsory Motor Vehicle Liability Insurance

Page 95 of 102
Vda. De Maglana vs. Hon. Consolacion (212 SCRA 268 [1992])
The Heirs of George Y. Poe vs. Malayan Insurance Company, Inc., G.R. No. 156302,
April 7, 2009
Jewel Villacorta vs. Insurance Commission, et al., G.R. No. 54171. October 28, 1980
James Stokes, as Attorney-in-Fact of Daniel Stephen Adolfson vs. Malayan Insurance

Co., Inc., G.R. No. L-34768. February 24, 1984
Andrew Palermo vs. Pyramid Insurance Co., Inc., G.R. No. L-36480. May 31, 1988
Agapito Gutierrez vs. Capital Insurance & Surety Co., Inc., G.R. No. L-26827, June 29,
1984
Lao vs. Standard Insurance Company, Inc., 409 SCRA 43
Perla Compania De Seguros, Inc., vs. Hon. Constante A. Ancheta, Presiding Judge of
the Court of First Instance of Camarines Norte, Branch III, et al., G.R. No.
L-49699, August 8, 1988
F. Insurable Interest
1. In Life/Health
Lalican vs. Insular Life Assurance Company Ltd (597 SCRA 159 [2009])
El Oriente Fabrica de Tabacos vs. Posada (56 Phil 147 [1931])
2. In Property
Spouses Nilo Cha and Stella Uy Cha vs. Court of Appeals, G.R. No. 124520, August
18, 1997
Malayan Insurance Company vs. PAP Co. (PHIL. BRANCH), G.R. No. 200784,
August 07, 2013
3. Double Insurance and Over Insurance
Armando Geagonia vs. Court of Appeals, et al., G.R. No. 114427, February 6, 1995
Page 96 of 102

Malayan Insurance Co., Inc., vs. Philippine First Insurance Co., Inc. and Reputable
Forwarder Services, Inc., G.R. No. 184300, July 11, 2012
4. Multiple or Several Interests on Same Property
Armando Geagonia vs. Court of Appeals, et al., G.R. No. 114427, February 6, 1995
Great Pacific Life vs. Court of Appeals (316 SCRA 677 [1999])
G. Perfection of the Contract of Insurance
1. Offer and Acceptance/Consensual
People of the Philippines vs. Yip Wai Ming, G.R. No. 120959, November 14, 1996
Great Pacific Life Assurance Company vs. Hon. Court of Appeals, G.R. No. L-31845.
April 30, 1979
a. Delay in Acceptance
b. Delivery of Policy
c. Cancellation of policy
Malayan Insurance Co., Inc. vs. Gregoria Cruz Arnaldo, in her capacity as the Insurance
Commissioner, et al., G.R. No. L-67835, October 12, 1987
2. Premium Payment
Capital Insurance & Surety Co., Inc., vs. Plastic Era Co., Inc., et al., G.R. No. L-22375,
July 18, 1975
Philippine Phoenix Surety & Insurance Company vs. Woodwork, Inc., G.R. No. L-25317,
August 6, 1979
Pacific Timber Export Corporation vs. Court of Appeals, et al., G.R. No. L-38613,
February 25, 1982
Arturo Valenzuela, et al. vs. Court Of Appeals, et al., G.R. No. 83122, October 19, 1990
Philippine Pryce Assurance Corporation vs. Court of Appeals, et al., G.R. No. 107062,
February 21, 1994
American Home Assurance vs. Antonio Chua, G.R. 130421, June 28, 1999
Page 97 of 102

UCPB General Insurance Co. Inc., vs. Masagana Telemart, Inc., G.R. No. 137172, April
4, 2001
Makati Tuscany Condominium Corp. vs. Court of Appeals (215 SCRA 463 [1992])
Jose Marques and Maxilite Technologies, Inc., vs. Far East Bank And Trust Company,
et al., G.R. No. 171379, January 10, 2011
3. Non-Default Options in Life Insurance
4. Reinstatement of a Lapsed Policy of Life Insurance
James McGuire v. The Manufacturers Life Insurance Co., G.R. No. L-3581, September
21, 1950
Andres vs. Crown Life Ins. Co., G.R. No. L-10875, January 28, 1958
5. Refund of Premiums
Great Pacific Life Insurance Corporation vs. Court of Appeals, et al., G.R. No. L-57308,
April 23, 1990
H. Rescission of Insurance Contracts
a. Concealment
Great Pacific Life Assurance Company vs. Court of Appeals, G.R. No. L-31845. April
30, 1979
Ng Gan Zee vs. Asian Crusader Life Assurance Corporation, G.R. No. L-30685, May
30, 1983
New Life Enterprises and Julian Sy vs. Court of Appeals, et al., G.R. No. 94071, March
31, 1992
Sunlife Assurance Company of Canada vs. Court of Appeals, et al., G.R. No. 105135,
June 22, 1995
Saturnino v. Phil-Am Life (7 SCRA 316 [1963])
Thelma Vda. De Canilang vs. Court of Appeals and Grepalife (223 SCRA 443 [1993])
Page 98 of 102

b. Misrepresentation/Omissions
Ma. Lourdes s. Florendo vs. Philam Plans, Inc., et al., G.R. No. 186983, February 22,
2012
Emilio Tan vs. Court of Appeals, G.R. No. 48049, June 29, 1989
Manila Bankers Life Insurance Corporation vs. Cresencia P. Aban, G.R. No. 175666,
July 29, 2013
Florendo vs. Philam Plans, G.R. No. 186983, February 22, 2012
c. Breach of Warranties
Qua Chee Gan v. Law Union (98 Phil 85 [1955])
Malayan Insurance Company, Inc. vs. Pap Co., Ltd., G.R. No. 200784, August 7, 2013
New Life Enterprises vs. Court of Appeals, 207 SCRA 669
Young vs. Midland Textile Insurance Company, 30 Phil. 617
Bachrach vs. British American Assurance Company, 17 Phil. 555
Young vs. Midland Textile Insurance Company, 30 Phil. 617
I. Claims Settlement and Subrogation
Perla Compania De Seguros, Inc. vs. Court of Appeals, G.R. No. 78860, May 28, 1990
Malayan Insurance Co vs. Alberto, G.R. No. 194320, February 1, 2012
1. Notice and Proof of Loss
FGU Insurance Corporation vs. Court of Appeals, 454 SCRA 351
United Merchants Corporation vs. Country Bankers Insurance Corporation, G.R. No.
198588, July 11, 2012
Finman Gen. Assurance vs. Court of Appeals (361 SCRA 214 [2001])
Page 99 of 102

Tan It vs. Sun Insurance 51 Phil 212
2. Guidelines on Claims Settlement
a. Unfair Claims Settlement; Sanctions
b. Prescription of Action
Summit Guaranty and Insurance Company, Inc. vs. Hon. Jose C. De Guzman, in his
capacity as Presiding Judge of Branch III, CFI of Tarlac, et al., G.R. No.
L-50997, June 30, 1987
Sun Life Office, Ltd. vs. Court of Appeals, GR. No. 89741, Mar. 13, 1991
Country Bankers Insurance Corp., vs. Travellers Insurance and Surety Corp., et al.,
G.R. No. 82509, August 16, 1989
H.H. Hollero Construction vs GSIS, GR no. 152334, September 24, 2014
c. Subrogation
Pan Malayan Insurance Corporation vs. Court of Appeals, et al., G.R. No. 81026, April
3, 1990
Aboitiz Shipping Corporation v. Insurance Company Of North America, G.R. No.

168402, August 6, 2008
Malayan Insurance Co., Inc., vs. Rodelio Alberto, et al., G.R. No. 194320, February 1,
2012
The Philippine American General Insurance Company, Inc., vs. Court of Appeals, et al.,
G.R. No. 116940, June 11, 1997
Fireman’s Fund Insurance Company vs. Jamila & Company, Inc., G.R. No. L-27427,
April 7, 1976
.R. No.
St. Paul Fire & Marine Insurance Co. vs. Macondray & Co., Inc., et al ., G
L-27796, March 25, 1976
Manila Mahogany Manufacturing Corporation vs. Court of Appeals, G.R. No. L-52756,
October 12, 1987
Delsan Transport Lines, Inc. vs. Court of Appeals, et al., G.R. No. 127897, November
15, 2001
Page 100 of 102
Eastern Shipping Lines, Inc. vs. Prudential Guarantee and Assurance, Inc., G.R. No.
174116, September 11, 2009
Asian Terminals vs First Lepanto-Taisho Insurance, GR no. 185964, June 16, 2014
Loadstar Shipping Company vs Malayan Insurance Company, GR no. 185565,

November 26, 2014
I. Miscellaneous Topics
1. Liability of Insurer
Pacific Timer Export Corporation vs. Court of Appeals, 112 SCRA 199 (1982)
Zenith Insurance Corporation vs. Court of Appeals, 119 SCRA 485 (1982)
Noda vs. Cruz-Arnaldo, 151 SCRA 227 (1987)
Vda, De Maglana vs.Consolacion, 212 SCRA 268 (1992)
GSIS vs. CA, 308 SCRA 559 (1999)
Tiu vs. Arriesgado, 437 SCRA 426 (2004)
2. Insurance Agent
Aisporna vs. Court of Appeals, 113 SCRA 459 (1982)
Great Pacific Life Assurance Corporation vs. Judico, 180 SCRA 445 (1989)
Great Pacific Life Assurance Corporation vs. National Labor Relations Commission, 187
SCRA 694 (1990)
Pineda vs. Court of Appeals, 226 SCRA 754 (1993)
Philippine American Life Insurance Company vs. Ansaldo, 234 SCRA 509 (1994)
South Sea Surety and Insurance Co., Inc. vs. Court of Appeals, 244 SCRA 744 (1995)
Smith, Bell & Co., Inc. vs. Court of Appeals, 267 SCRA 530 (1997)
3. Reinsurance
Page 101 of 102

Gibson vs. Revilla, 92 SCRA 219 (1979)
Avon Insurance PLC vs. Court of Appeals, 278 SCRA 312 (1997)
4. Documentary Stamp Tax on Insurance Policy
Philippine Home Assurance Corp. vs. Court of Appeals, 301 SCRA 443 (1999)
Commissioner of Internal Revenue vs. Lincoln Philippine Life Insurance Co., Inc., 379
SCRA 423 (2002)
Page 102 of 102

Commercial Law Review Outline 1

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Commercial Law Review Outline 1

Transféré par

Droits d'auteur :

Formats disponibles

COMMERCIAL LAW REVIEW OUTLINE

Dean Nilo T. Divina

1. Definition and Nature of Letter of Credit

- A Financial devise to facilitate commercial transaction

Bank of America vs. Court of Appeals, 228 SCRA 357 (1993)

- Security arrangements but not accessory contracts

MWSS vs. Hon. Daway, 432 SCRA 559 (2004)

- A composite of at least three distinct but intertwined relationships, each

Reliance Commodities, Inc. vs. Daewoo Industrial Co., Ltd., 228

- Not a negotiable instrument

Lee vs. Court of Appeals, 375 SCRA 579 (2002)

- ​Different from trust receipt

Bank of Commerce vs. Serrano, 451 SCRA 484 (2005)

2. Laws governing letter of credit

- Applicability of usage and customs apply in commercial transactions in the

3. Kinds of letter of credit

a. Commercial and stand by letter of credit

Page ​1​ of ​102

Bank of America vs Court of Appeals 228 SCRA 357

b. Irrevocable and revocable letter of credit

c. Confirmed and unconfirmed letter of credit

4. Parties to a Letter of Credit

a. Rights and Obligations of Parties

MARPHIL EXPORT CORPORATION and IRENEO LIM, Petitioners, - versus -

iv. Advising/Notifying Bank

Bank of America vs. Court of Appeals, ibid.

i. In commercial letter of credit

BPI vs. De reny Fabrics, ibid..

THE HONGKONG & SHANGHAI BANKING CORPORATION, LIMITED, Petitioner, v.

ii. In Standby letter of credit

b. Fraud Exception Principle

Transfield Philippines, Inc. vs. Luzon Hydro Corp. Ibid.

c. Doctrine of Strict Compliance

Feati Bank & Trust Company vs. Court of Appeals, ibid.

II. Trust Receipts Law

1. Definition/Concept of a Trust Receipt Transaction

a. A security transaction intended to aid in financing importers and

Lee vs. Court of Appeals, 375 SCRA 579 (2002)

c. The loan should be granted to finance acquisition of the goods

Colinares vs. Court of Appeals, 339 SCRA 609 (2000)

d. The goods must be intended for sale or resale, otherwise, it is a

Anthony L. Ng vs. People of the Philippines, G.R. No. 173905, April

e. No trust receipt, notwithstanding the label, if goods offered as

f. Failure of the entrustee to remit sale proceeds or return the goods

People vs. Hon. Nitafan 207 SCRA 726 (1992)

Page ​4​ of ​102

a. Entrustee is the owner of the goods

Vintola vs IBAA, ibid

b. Entrustee can not mortgage the goods under trust receipt

DBP vs. Prudential Bank, 475 SCRA 623 (2005)

3. Rights of the Entruster

a. Validity of the Security Interest as Against the Creditors of the

4. Obligation and Liability of the Entrustee

a. No criminal liability in the following cases

i. entrustee already owns the goods when loan under TR

Colinares vs Court of Appeals, ibid.

ii. goods not intended for sale or resale

iii. Non-delivery of the goods

Ramos vs. Court of Appeals, 153 SCRA 276 (1987)

Ong vs. Court of Appeals, 124 SCRA 578 (1983)

Pilipinas Bank vs. Ong, 387 SCRA 37 (2002)

Page ​5​ of ​102

6. Return of Goods, Documents or Instruments in Case of Non-Sale

Vintola vs. Insular Bank of Asia and America, ibid

- Different from trust receipt

Page 1 of 102

Page 4 of 102

Page 5 of 102

Page 7 of 102

Page 8 of 102

Page 9 of 102

Ejercito vs. Sandiganbayan, G.R. Nos. 157294-95, November 30, 2006

Page 10 of 102

Page 11 of 102

Page 12 of 102

Page 13 of 102