Republic of the Philippines Supreme Court Manila
SECOND DIVISION
'&R& No& ())*)) SPOUSES FERNANDO an !OURDES VI!ORIA"
Present: Petitioners"
CARPIO, J., Chairperson,
PEREZ, # $ersus #
SERENO, REYES, and BERNABE, JJ.
∗
Promulgated: CON%INEN%A! AIR!INES" INC&" Responent&
January 16, !1
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Page 1 of 27
DECISION
RE+ES" J &, &,
"#$s $s a %et$t$on &or re'$e( under Rule )* o& t#e Rules o& Court &rom t#e January +!, !! -e.$s$on o& t#e S%e.$al "#$rteent# -$'$s$on o& t#e Court o& A%%eals /CA0 $n CA23R3 C4 No3 55*56 ent$tled “Spouses Fernando and Lourdes Viloria v. Continental Airlines, Inc.,” t#e d$s%os$t$'e %ort$on o& (#$.# states: 1
-.EREFORE, t#e -e.$s$on o& t#e Reg$onal "r$al Court, Bran.# ), dated !+ A%r$l !!6, a(ard$ng 7S85!!3!! or $ts %eso e9u$'alent at t#e t$me o& %ayment, %lus legal rate o& $nterest $nterest &rom 1 July 1 unt$l unt$l &ully %a$d, P;1!!,!!!3!! as moral damages, P;*!,!!!3!! as e
y REVERSED and SE% ASIDE3
-e&endanta%%ellant=s -e&endanta%%ellant=s .ounter.la$m $s DENIED3
Costs aga$nst %la$nt$&&sa%%ellees3 %la$nt$&&sa%%ellees3
SO ORDERED3
On A%r$l +, !!6, t#e Reg$onal "r$al Court o& Ant$%olo C$ty, Bran.# ) /R"C0 rendered a -e.$s$on, g$'$ng due .ourse to t#e .om%la$nt . om%la$nt &or sum o& money and damages &$led >y %et$t$oners ?ernando 4$lor$a 4$lor$a /?ernando0 and @ourdes 4$lor$a 4$lor$a /@ourdes0, /@ourdes0, .olle.t$'ely .alled S%ouses 4$lor$a, 4$lor$a, aga$nst res%ondent Cont$nental A$rl$nes, A$rl$nes, In.3 /CAI03 As .ulled &rom t#e re.ords, >elo( are t#e &a.ts g$'$ng r$se to su.# .om%la$nt3
On or a>out July 1, 1 and (#$le $n t#e 7n$ted States, ?ernando %ur.#ased &or & or #$msel& and #$s ($&e, @ourdes, t(o /0 round tr$% a$rl$ne t$.ets &rom San -$ego, - $ego, Cal$&orn$a to Ne(ar, Ne( Jersey on >oard Cont$nental Cont$nental A$rl$nes3 A$rl$nes3 ?ernando %ur.#ased t#e t#e t$.ets at Page 2 of 27
7S8)!!3!! ea.# &rom a tra'el agen.y .alled ol$day "ra'elD and (as attended to >y a .erta$n argaret ager /ager03 A..ord$ng to S%ouses 4$lor$a, ?ernando agreed to >uy t#e sa$d t$.ets a&ter ager $n&ormed t#em t#at t#ere (ere no a'a$la>le seats at Amtra, an $nter.$ty %assenger tra$n ser'$.e %ro'$der $n t#e 7n$ted States3 Per t#e t$.ets, S%ouses 4$lor$a (ere s.#eduled to lea'e &or Ne(ar on August 1+, 1 and return to San -$ego on August 1, 13
Su>se9uently, ?ernando re9uested ager to res.#edule t#e$r &l$g#t to Ne(ar to an earl$er date or August 6, 13 ager $n&ormed #$m t#at &l$g#ts to Ne(ar '$a Cont$nental A$rl$nes (ere already &ully >ooed and o&&ered t#e alternat$'e o& a round tr$% &l$g#t '$a ?ront$er A$r3 S$n.e &ly$ng ($t# ?ront$er A$r .alled &or a #$g#er &are o& 7S8*63!! %er %assenger and (ould mean tra'el$ng >y n$g#t, ?ernando o%ted to re9uest &or a re&und3 ager, #o(e'er, den$ed #$s re9uest as t#e su>Fe.t t$.ets are nonre&unda>le and t#e only o%t$on t#at Cont$nental A$rl$nes .an o&&er $s t#e re$ssuan.e o& ne( t$.ets ($t#$n one /10 year &rom t#e date t#e su>Fe.t t$.ets (ere $ssued3 ?ernando de.$ded to reser'e t(o /0 seats ($t# ?ront$er A$r3
As #e (as #a'$ng se.ond t#oug#ts on tra'el$ng '$a ?ront$er A$r, ?ernando (ent to t#e 2rey#ound Stat$on (#ere #e sa( an Amtra stat$on near>y3 ?ernando made $n9u$r$es and (as told t#at t#ere are seats a'a$la>le and #e .an tra'el on Amtra anyt$me and any day #e %leased3 ?ernando t#en %ur.#ased t(o /0 t$.ets &or Gas#$ngton, -3C3
?rom Amtra, ?ernando (ent to ol$day "ra'el and .on&ronted ager ($t# t#e Amtra t$.ets, tell$ng #er t#at s#e #ad m$sled t#em $nto >uy$ng t#e Cont$nental A$rl$nes t$.ets >y m$sre%resent$ng t#at Amtra (as already &ully >ooed3 ?ernando re$terated #$s demand &or a re&und >ut ager (as &$rm $n #er %os$t$on t#at t#e su>Fe.t t$.ets are nonre&unda>le3
7%on return$ng to t#e P#$l$%%$nes, ?ernando sent a letter to CAI on ?e>ruary 11, 15, demand$ng a re&und and alleg$ng t#at ager #ad deluded t#em $nto %ur.#as$ng t#e su>Fe.t t$.ets3 +
In a letter dated ?e>ruary ), 15, Cont$nental $.rones$a $n&ormed ?ernando t#at #$s .om%la$nt #ad >een re&erred to t#e Customer Re&und Ser'$.es o& Cont$nental A$rl$nes at ouston, "e
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In a letter dated ar.# ), 15, Cont$nental $.rones$a den$ed ?ernando=s re9uest &or a re&und and ad'$sed #$m t#at #e may tae t#e su>Fe.t t$.ets to any Cont$nental t$.et$ng lo.at$on &or t#e re$ssuan.e o& ne( t$.ets ($t#$n t(o /0 years &rom t#e date t#ey (ere $ssued3 Cont$nental $.rones$a $n&ormed ?ernando t#at t#e su>Fe.t t$.ets may >e used as a &orm o& %ayment &or t#e %ur.#ase o& anot#er Cont$nental t$.et, al>e$t ($t# a re$ssuan.e &ee3 *
On June 1, 1, ?ernando (ent to Cont$nental=s t$.et$ng o&&$.e at Ayala A'enue, aat$ C$ty to #a'e t#e su>Fe.t t$.ets re%la.ed >y a s$ngle round tr$% t$.et to @os Angeles, Cal$&orn$a under #$s name3 "#ere$n, ?ernando (as $n&ormed t#at @ourdes= t$.et (as non trans&era>le, t#us, .annot >e used &or t#e %ur.#ase o& a t$.et $n #$s &a'or3 e (as also $n&ormed t#at a round tr$% t$.et to @os Angeles (as 7S81,563)! so #e (ould #a'e to %ay (#at ($ll not >e .o'ered >y t#e 'alue o& #$s San -$ego to Ne(ar round tr$% t$.et3
In a letter dated June 1, 1, ?ernando demanded &or t#e re&und o& t#e su>Fe.t t$.ets as #e no longer ($s#ed to #a'e t#em re%la.ed3 In add$t$on to t#e du>$ous .$r.umstan.es under (#$.# t#e su>Fe.t t$.ets (ere $ssued, ?ernando .la$med t#at CAI=s a.t o& .#arg$ng #$m ($t# 7S81,563)! &or a round tr$% t$.et to @os Angeles, (#$.# ot#er a$rl$nes %r$.ed at 7S85*63!!, and re&usal to allo( #$m to use @ourdes= t$.et, >rea.#ed $ts underta$ng under $ts ar.# ), 15 letter3 6
On Se%tem>er 5, !!!, S%ouses 4$lor$a &$led a .om%la$nt aga$nst CAI, %ray$ng t#at CAI >e ordered to re&und t#e money t#ey used $n t#e %ur.#ase o& t#e su>Fe.t t$.ets ($t# legal $nterest &rom July 1, 1 and to %ay P1,!!!,!!!3!! as moral damages, P*!!,!!!3!! as e
CAI $nter%osed t#e &ollo($ng de&enses: /a0 S%ouses 4$lor$a #a'e no r$g#t to as &or a re&und as t#e su>Fe.t t$.ets are nonre&unda>leH />0 ?ernando .annot $ns$st on us$ng t#e t$.et $n @ourdes= name &or t#e %ur.#ase o& a round tr$% t$.et to @os Angeles s$n.e t#e same $s non trans&era>leH /.0 as ager $s not a CAI em%loyee, CAI $s not l$a>le &or any o& #er a.tsH /d0 CAI, $ts em%loyees and agents d$d not a.t $n >ad &a$t# as to ent$tle S%ouses 4$lor$a to moral and eFe.t t$.ets:
+3 "o t#e ey ea.# .arr$er are su>Fe.t to: /$0 %ro'$s$ons .onta$ned $n t#$s t$.et, /$$0 a%%l$.a>le tar$&&s, /$$$0 .arr$er=s .ond$t$ons o& .arr$age and related regulat$ons (#$.# are made %art #ereo& /and are a'a$la>le on a%%l$.at$on at t#e o&&$.es o& Page 4 of 27
.arr$er0, e<.e%t $n trans%ortat$on >et(een a %la.e $n t#e 7n$ted States or Canada and any %la.e outs$de t#ereo& to (#$.# tar$&&s $n &or.e $n t#ose .ountr$es a%%ly3 5
A..ord$ng to CAI, one o& t#e .ond$t$ons atta.#ed to t#e$r .ontra.t o& .arr$age $s t#e nontrans&era>$l$ty and nonre&unda>$l$ty o& t#e su>Fe.t t$.ets3
%he R%C/s Rulin0
?ollo($ng a &ull>lo(n tr$al, t#e R"C rendered $ts A%r$l +, !!6 -e.$s$on, #old$ng t#at S%ouses 4$lor$a are ent$tled to a re&und $n '$e( o& ager=s m$sre%resentat$on $n o>ta$n$ng t#e$r .onsent $n t#e %ur.#ase o& t#e su>Fe.t t$.ets3 "#e rele'ant %ort$on o& t#e A%r$l +, !!6 -e.$s$on states:
Cont$nental A$rl$nes agent s3 ager (as $n >ad &a$t# (#en s#e (as less .and$d and d$l$gent $n %resent$ng to %la$nt$&&s s%ouses t#e$r >oo$ng o%t$ons3 Pla$nt$&& ?ernando .learly (anted to tra'el '$a A"RA, >ut de&endant=s agent m$sled #$m $nto %ur.#as$ng Cont$nental A$rl$nes t$.ets $nstead on t#e &raudulent m$sre%resentat$on t#at Amtra (as &ully >ooed3 In &a.t, de&endant A$rl$ne d$d not s%e.$&$.ally den$ed /s$.0 t#$s allegat$on3
Pla$nly, %la$nt$&&s s%ouses, %art$.ularly %la$nt$&& ?ernando, (ere tr$.ed $nto >uy$ng Cont$nental A$rl$ne t$.ets on s3 ager=s m$slead$ng m$sre%resentat$ons3 Cont$nental A$rl$nes agent s3 ager &urt#er rel$ed on and e<%lo$ted %la$nt$&& ?ernando=s need and told #$m t#at t#ey must >oo a &l$g#t $mmed$ately or r$s not >e$ng a>le to tra'el at all on t#e .ou%le=s %re&erred date3 7n&ortunately, %la$nt$&&s s%ouses &ell %rey to t#e a$rl$ne=s and $ts agent=s unet#$.al ta.t$.s &or >a$t$ng trust$ng .ustomers3D 1!
C$t$ng Art$.les 1565 and 156 o& t#e C$'$l Code, t#e R"C ruled t#at ager $s CAI=s agent, #en.e, >ound >y #er >ad &a$t# and m$sre%resentat$on3 As &ar as t#e R"C $s .on.erned, t#ere $s no $ssue as to (#et#er ager (as CAI=s agent $n '$e( o& CAI=s $m%l$ed re.ogn$t$on o& #er status as su.# $n $ts ar.# ), 15 letter3
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"#e a.t o& a tra'el agent or agen.y >e$ng $n'ol'ed #ere, t#e &ollo($ng are t#e %ert$nent Ne( C$'$l Code %ro'$s$ons on agen.y:
Art3 15653 By t#e .ontra.t o& agen.y a %erson >$nds #$msel& to render some ser'$.e or to do somet#$ng $n re%resentat$on or on >e#al& o& anot#er, ($t# t#e .onsent or aut#or$ty o& t#e latter3
Art3 1563 Agen.y may >e e<%ress, or $m%l$ed &rom t#e a.ts o& t#e %r$n.$%al, &rom #$s s$len.e or la. o& a.t$on, or #$s &a$lure to re%ud$ate t#e agen.y, no($ng t#at anot#er %erson $s a.t$ng on #$s >e#al& ($t#out aut#or$ty3
Agen.y may >e oral, unless t#e la( re9u$res a s%e.$&$. &orm3
As $ts 'ery name $m%l$es, a tra'el agen.y >$nds $tsel& to render some ser'$.e or to do somet#$ng $n re%resentat$on or on >e#al& o& anot#er, ($t# t#e .onsent or aut#or$ty o& t#e latter3 "#$s .ourt taes Fud$.$al not$.e o& t#e .ommon ser'$.es rendered >y tra'el agen.$es t#at re%resent t#emsel'es as su.#, s%e.$&$.ally t#e reser'at$on and >oo$ng o& lo.al and &ore$gn tours as (ell as t#e $ssuan.e o& a$rl$ne t$.ets &or a .omm$ss$on or &ee3
"#e ser'$.es rendered >y s3 ager o& ol$day "ra'el agen.y to t#e %la$nt$&& s%ouses on July 1, 1 (ere no d$&&erent &rom t#ose o&&ered $n any ot#er tra'el agen.y3 -e&endant a$rl$ne $m%l$edly $& not e<%ressly a.no(ledged $ts %r$n.$%alagent relat$ons#$% ($t# s3 ager >y $ts o&&er $n t#e letter dated ar.# ), 15 an o>'$ous attem%t to assuage %la$nt$&&s s%ouses= #urt &eel$ngs3 11
?urt#ermore, t#e R"C ruled t#at CAI a.ted $n >ad &a$t# $n reneg$ng on $ts underta$ng to re%la.e t#e su>Fe.t t$.ets ($t#$n t(o /0 years &rom t#e$r date o& $ssue (#en $t .#arged ?ernando ($t# t#e amount o& 7S81,563)! &or a round tr$% t$.et to @os Angeles and (#en $t re&used to allo( ?ernando to use @ourdes= t$.et3 S%e.$&$.ally:
"$.ets may >e re$ssued &or u% to t(o years &rom t#e or$g$nal date o& $ssue3 G#en de&endant a$rl$ne st$ll .#arged %la$nt$&&s s%ouses 7S81,563)! or more t#an dou>le t#e t#en go$ng rate o& 7S85*63!! &or t#e unused t$.ets (#en t#e Page 6 of 27
same (ere %resented ($t#$n t(o /0 years &rom date o& $ssue, de&endant a$rl$ne e<#$>$ted .allous treatment o& %assengers3 1
%he Appellate Court/s Rulin0
On a%%eal, t#e CA re'ersed t#e R"C=s A%r$l +, !!6 -e.$s$on, #old$ng t#at CAI .annot >e #eld l$a>le &or ager=s a.t $n t#e a>sen.e o& any %roo& t#at a %r$n.$%alagent relat$ons#$% e<$sted >et(een CAI and ol$day "ra'el3 A..ord$ng to t#e CA, S%ouses 4$lor$a, (#o #a'e t#e >urden o& %roo& to esta>l$s# t#e &a.t o& agen.y, &a$led to %resent e'$den.e demonstrat$ng t#at ol$day "ra'el $s CAI=s agent3 ?urt#ermore, .ontrary to S%ouses 4$lor$a=s .la$m, t#e .ontra.tual relat$ons#$% >et(een ol$day "ra'el and CAI $s not an agen.y >ut t#at o& a sale3
Pla$nt$&&sa%%ellees assert t#at ager (as a su>agent o& ol$day "ra'el (#o (as $n turn a t$.et$ng agent o& ol$day "ra'el (#o (as $n turn a t$.et$ng agent o& Cont$nental A$rl$nes3 Pro.eed$ng &rom t#$s %rem$se, t#ey .ontend t#at Cont$nental A$rl$nes s#ould >e #eld l$a>le &or t#e a.ts o& ager3 "#e tr$al .ourt #eld t#e same '$e(3
Ge do not agree3 By t#e .ontra.t o& agen.y, a %erson >$nds #$mK#ersel& to render some ser'$.e or to do somet#$ng $n re%resentat$on or on >e#al& o& anot#er, ($t# t#e .onsent or aut#or$ty o& t#e latter3 "#e elements o& agen.y are: /10 .onsent, e<%ress or $m%l$ed, o& t#e %art$es to esta>l$s# t#e relat$ons#$%H /0 t#e o>Fe.t $s t#e eas$s o& agen.y $s re%resentat$on, t#ere must >e, on t#e %art o& t#e %r$n.$%al, an a.tual $ntent$on to a%%o$nt, an $ntent$on naturally $n&era>le &rom t#e %r$n.$%al=s (ords or a.t$ons3 In t#e same manner, t#ere must >e an $ntent$on on t#e %art o& t#e agent to a..e%t t#e a%%o$ntment and a.t u%on $t3 A>sent su.# mutual $ntent, t#ere $s generally no agen.y3 It $s l$e($se a settled rule t#at %ersons deal$ng ($t# an assumed agent are >ound at t#e$r %er$l, $& t#ey (ould #old t#e %r$n.$%al l$a>le, to as.erta$n not only t#e &a.t o& agen.y >ut also t#e nature and eurden o& %roo& $s u%on t#em to esta>l$s# $t3 Agen.y $s ne'er %resumed, ne$t#er $s $t .reated >y t#e mere use o& t#e (ord $n a trade or >us$ness name3 Ge #a'e %erused t#e e'$den.e and do.uments so &ar %resented3 Ge &$nd not#$ng e<.e%t >are allegat$ons o& %la$nt$&&sa%%ellees t#at agerKol$day "ra'el (as a.t$ng $n >e#al& o& Cont$nental A$rl$nes3 ?rom all s$des o& legal %r$sm, t#e transa.t$on $n $ssue (as s$m%ly a .ontra.t o& sale, (#ere$n ol$day "ra'el >uys a$rl$ne t$.ets &rom Cont$nental A$rl$nes and t#en, t#roug# $ts em%loyees, ager $n.luded, sells $t at a %rem$um to .l$ents3 1+
Page 7 of 27
"#e CA also ruled t#at re&und $s not a'a$la>le to S%ouses 4$lor$a as t#e (ord non re&unda>leD (as .learly %r$nted on t#e &a.e o& t#e su>Fe.t t$.ets, (#$.# .onst$tute t#e$r .ontra.t ($t# CAI3 "#ere&ore, t#e grant o& t#e$r %rayer &or a re&und (ould '$olate t#e %ros.r$%t$on aga$nst $m%a$rment o& .ontra.ts3
?$nally, t#e CA #eld t#at CAI d$d not a.t $n >ad &a$t# (#en t#ey .#arged S%ouses 4$lor$a ($t# t#e #$g#er amount o& 7S81,563)! &or a round tr$% t$.et to @os Angeles3 A..ord$ng to t#e CA, t#ere $s no .om%uls$on &or CAI to .#arge t#e lo(er amount o& 7S85*63!!, (#$.# S%ouses 4$lor$a .la$m to >e t#e &ee .#arged >y ot#er a$rl$nes3 "#e matter o& &$<$ng t#e %r$.es &or $ts ser'$.es $s CAI=s %rerogat$'e, (#$.# S%ouses 4$lor$a .annot $nter'ene3 In %art$.ular:
It $s ($t#$n t#e res%e.t$'e r$g#ts o& %ersons o(n$ng andKor o%erat$ng >us$ness ent$t$es to %eg t#e %rem$um o& t#e ser'$.es and $tems (#$.# t#ey %ro'$de at a %r$.e (#$.# t#ey deem &$t, no matter #o( e<%ens$'e or e<#or>$tant sa$d %r$.e may seem vis-à-vis t#ose o& t#e .om%et$ng .om%an$es3 "#e S%ouses 4$lor$a may not $nter'ene ($t# t#e >us$ness Fudgment o& Cont$nental A$rl$nes3 1)
%he Petitioners/ Case
In t#$s Pet$t$on, t#$s Court $s >e$ng ased to re'$e( t#e &$nd$ngs and .on.lus$ons o& t#e CA, as t#e latter=s re'ersal o& t#e R"C=s A%r$l +, !!6 -e.$s$on allegedly la.s &a.tual and legal >ases3 S%ouses 4$lor$a .la$m t#at CAI a.ted $n >ad &a$t# (#en $t re9u$red t#em to %ay a #$g#er amount &or a round tr$% t$.et to @os Angeles .ons$der$ng CAI=s underta$ng to re$ssue ne( t$.ets to t#em ($t#$n t#e %er$od stated $n t#e$r ar.# ), 15 letter3 CAI l$e($se a.ted $n >ad &a$t# (#en $t d$sallo(ed ?ernando to use @ourdes= t$.et to %ur.#ase a round tr$% to @os Angeles g$'en t#at t#ere $s not#$ng $n @ourdes= t$.et $nd$.at$ng t#at $t $s nontrans&era>le3 As a .ommon .arr$er, $t $s CAI=s duty to $n&orm $ts %assengers o& t#e terms and .ond$t$ons o& t#e$r .ontra.t and %assengers .annot >e >ound >y su.# terms and .ond$t$ons (#$.# t#ey are not made a(are o&3 Also, t#e su>Fe.t .ontra.t o& .arr$age $s a .ontra.t o& ad#es$onH t#ere&ore, any am>$gu$t$es s#ould >e .onstrued aga$nst CAI3 Nota>ly, t#e %et$t$oners are no longer 9uest$on$ng t#e 'al$d$ty o& t#e su>Fe.t .ontra.ts and l$m$ted $ts .la$m &or a re&und on CAI=s alleged >rea.# o& $ts underta$ng $n $ts ar.# ), 15 letter3
%he Responent/s Case Page 8 of 27
In $ts Comment, CAI .la$med t#at S%ouses 4$lor$a=s allegat$on o& >ad &a$t# $s negated >y $ts ($ll$ngness to $ssue ne( t$.ets to t#em and to .red$t t#e 'alue o& t#e su>Fe.t t$.ets aga$nst t#e 'alue o& t#e ne( t$.et ?ernando re9uested3 CAI argued t#at S%ouses 4$lor$a=s sole >as$s to .la$m t#at t#e %r$.e at (#$.# CAI (as ($ll$ng to $ssue t#e ne( t$.ets $s un.ons.$ona>le $s a %$e.e o& #earsay e'$den.e an ad'ert$sement a%%ear$ng on a ne(s%a%er stat$ng t#at a$r&ares &rom an$la to @os Angeles or San ?ran.$s.o .ost 7S85153!!3 Also, t#e ad'ert$sement %erta$ns to a$r&ares $n Se%tem>er !!! and not to a$r&ares %re'a$l$ng $n June 1, t#e t$me (#en ?ernando ased CAI to a%%ly t#e 'alue o& t#e su>Fe.t t$.ets &or t#e %ur.#ase o& a ne( one3 CAI l$e($se argued t#at $t d$d not undertae to %rote.t S%ouses 4$lor$a &rom any .#anges or &lu.tuat$ons $n t#e %r$.es o& a$rl$ne t$.ets and $ts only o>l$gat$on (as to a%%ly t#e 'alue o& t#e su>Fe.t t$.ets to t#e %ur.#ase o& t#e ne(ly $ssued t$.ets3 1*
16
G$t# res%e.t to S%ouses 4$lor$a=s .la$m t#at t#ey are not a(are o& CAI=s restr$.t$ons on t#e su>Fe.t t$.ets and t#at t#e terms and .ond$t$ons t#at are %r$nted on t#em are am>$guous, CAI den$es any am>$gu$ty and alleged t#at $ts re%resentat$'e $n&ormed ?ernando t#at t#e su>Fe.t t$.ets are nontrans&era>le (#en #e a%%l$ed &or t#e $ssuan.e o& a ne( t$.et3 On t#e ot#er #and, t#e (ord nonre&unda>leD .learly a%%ears on t#e &a.e o& t#e su>Fe.t t$.ets3
CAI also den$es t#at $t $s >ound >y t#e a.ts o& ol$day "ra'el and ager and t#at no %r$n.$%alagen.y relat$ons#$% e<$sts >et(een t#em3 As an $nde%endent .ontra.tor, ol$day "ra'el (as ($t#out .a%a.$ty to >$nd CAI3
Issues
"o determ$ne t#e %ro%r$ety o& d$stur>$ng t#e CA=s January +!, !! -e.$s$on and (#et#er S%ouses 4$lor$a #a'e t#e r$g#t to t#e rel$e&s t#ey %rayed &or, t#$s Court deems $t ne.essary to resol'e t#e &ollo($ng $ssues:
a3 -oes a %r$n.$%alagent relat$ons#$% e<$st >et(een CAI and ol$day "ra'elL >3 Assum$ng t#at an agen.y relat$ons#$% e<$sts >et(een CAI and ol$day "ra'el, $s CAI >ound >y t#e a.ts o& ol$day "ra'el=s agents and em%loyees su.# as agerL .3 Assum$ng t#at CAI $s >ound >y t#e a.ts o& ol$day "ra'el=s agents and em%loyees, .an t#e re%resentat$on o& ager as to una'a$la>$l$ty o& seats at Page 9 of 27
Amtra >e .ons$dered &raudulent as to '$t$ate t#e .onsent o& S%ouse 4$lor$a $n t#e %ur.#ase o& t#e su>Fe.t t$.etsL d3 Is CAI Fust$&$ed $n $ns$st$ng t#at t#e su>Fe.t t$.ets are nontrans&era>le and nonre&unda>leL e3 Is CAI Fust$&$ed $n %egg$ng a d$&&erent %r$.e &or t#e round tr$% t$.et to @os Angeles re9uested >y ?ernandoL &3 Alternat$'ely, d$d CAI a.t $n >ad &a$t# or renege $ts o>l$gat$on to S%ouses 4$lor$a to a%%ly t#e 'alue o& t#e su>Fe.t t$.ets $n t#e %ur.#ase o& ne( ones (#en $t re&used to allo( ?ernando to use @ourdes= t$.et and $n .#arg$ng a #$g#er %r$.e &or a round tr$% t$.et to @os AngelesL
%his Court/s Rulin0
I& A principal#a0ent relationship e1ists bet2een CAI an .olia3 %ra$el&
G$t# res%e.t to t#e &$rst $ssue, (#$.# $s a 9uest$on o& &a.t t#at (ould re9u$re t#$s Court to re'$e( and reey t#e %art$es >elo(, t#$s Court taes e<.e%t$on to t#e general rule t#at t#e CA=s &$nd$ngs o& &a.t are .on.lus$'e u%on 7s and our Fur$sd$.t$on $s l$m$ted to t#e re'$e( o& 9uest$ons o& la(3 It $s (ellsettled to t#e %o$nt o& >e$ng a<$omat$. t#at t#$s Court $s aut#or$Med to resol'e 9uest$ons o& &a.t $& .on&ronted ($t# .ontrast$ng &a.tual &$nd$ngs o& t#e tr$al .ourt and a%%ellate .ourt and $& t#e &$nd$ngs o& t#e CA are .ontrad$.ted >y t#e e'$den.e on re.ord3 1
A..ord$ng to t#e CA, agen.y $s ne'er %resumed and t#at #e (#o alleges t#at $t e<$sts #as t#e >urden o& %roo&3 S%ouses 4$lor$a, on (#ose s#oulders su.# >urden rests, %resented e'$den.e t#at &ell s#ort o& $ndu>$ta>ly demonstrat$ng t#e e<$sten.e o& su.# agen.y3
Ge d$sagree3 "#e CA &a$led to .ons$der und$s%uted &a.ts, d$s.red$t$ng CAI=s den$al t#at ol$day "ra'el $s one o& $ts agents3 ?urt#ermore, $n erroneously .#ara.ter$M$ng t#e .ontra.tual relat$ons#$% >et(een CAI and ol$day "ra'el as a .ontra.t o& sale, t#e CA &a$led to a%%ly t#e &undamental .$'$l la( %r$n.$%les go'ern$ng agen.y and d$&&erent$at$ng $t &rom sale3
Page 10 of 27
In Rallos v. Feli !o Chan " Sons Realt# Corporation, t#$s Court e<%la$ned t#e nature o& an agen.y and s%elled out t#e essent$al elements t#ereo&: 15
Out o& t#e a>o'e g$'en %r$n.$%les, s%rung t#e .reat$on and a..e%tan.e o& t#e relationship o$ a%enc# (#ere>y one %arty, .alled t#e %r$n.$%al / &andante0, aut#or$Mes anot#er, .alled t#e agent / &andatario0, to a.t &or and $n #$s >e#al& $n transa.t$ons ($t# t#$rd %ersons3 "#e essent$al elements o& agen.y are: /10 t#ere $s .onsent, e<%ress or $m%l$ed o& t#e %art$es to esta>l$s# t#e relat$ons#$%H /0 t#e o>Fe.t $s t#e e
Agen.y $s >as$.ally personal, representative, and derivative $n nature3 "#e aut#or$ty o& t#e agent to a.t emanates &rom t#e %o(ers granted to #$m >y #$s %r$n.$%alH #$s a.t $s t#e a.t o& t#e %r$n.$%al $& done ($t#$n t#e s.o%e o& t#e aut#or$ty3 'ui $acit per aliu& $acit se 3 e (#o a.ts t#roug# anot#er a.ts #$msel&3 1
Contrary to t#e &$nd$ngs o& t#e CA, all t#e elements o& an agen.y e<$st $n t#$s .ase3 "#e &$rst and se.ond elements are %resent as CAI does not deny t#at $t .on.luded an agreement ($t# ol$day "ra'el, (#ere>y ol$day "ra'el (ould enter $nto .ontra.ts o& .arr$age ($t# t#$rd %ersons on CAI=s >e#al&3 "#e t#$rd element $s also %resent as $t $s und$s%uted t#at ol$day "ra'el merely a.ted $n a re%resentat$'e .a%a.$ty and $t $s CAI and not ol$day "ra'el (#o $s >ound >y t#e .ontra.ts o& .arr$age entered $nto >y ol$day "ra'el on $ts >e#al&3 "#e &ourt# element $s also %resent .ons$der$ng t#at CAI #as not made any allegat$on t#at ol$day "ra'el e<.eeded t#e aut#or$ty t#at (as granted to $t3 In &a.t, CAI .ons$stently ma$nta$ns t#e 'al$d$ty o& t#e .ontra.ts o& .arr$age t#at ol$day "ra'el ee#al& $s eas$ly d$s.ern$>le &rom $ts ?e>ruary ), 15 and ar.# ), 15 letters, (#ere $t $m%l$edly re.ogn$Med t#e 'al$d$ty o& t#e .ontra.ts entered $nto >y ol$day "ra'el ($t# S%ouses 4$lor$a3 G#en ?ernando $n&ormed CAI t#at $t (as ol$day "ra'el (#o $ssued to t#em t#e su>Fe.t t$.ets, CAI d$d not deny t#at ol$day "ra'el $s $ts aut#or$Med agent3
Pr$or to S%ouses 4$lor$a=s &$l$ng o& a .om%la$nt aga$nst $t, CAI ne'er re&uted t#at $t ga'e ol$day "ra'el t#e %o(er and aut#or$ty to .on.lude .ontra.ts o& .arr$age on $ts >e#al&3 As .learly eound ($t# S%ouses 4$lor$a >y t#e terms and .ond$t$ons t#ereo&H and t#$s .onst$tutes an une9u$'o.al testament to Page 11 of 27
ol$day "ra'el=s aut#or$ty to a.t as $ts agent3 "#$s Court .annot t#ere&ore allo( CAI to tae an altoget#er d$&&erent %os$t$on and deny t#at ol$day "ra'el $s $ts agent ($t#out .ondon$ng or g$'$ng $m%r$matur to (#ate'er damage or %reFud$.e t#at may result &rom su.# den$al or retra.t$on to S%ouses 4$lor$a, (#o rel$ed on good &a$t# on CAI=s a.ts $n re.ogn$t$on o& ol$day "ra'el=s aut#or$ty3 Esto%%el $s %r$mar$ly >ased on t#e do.tr$ne o& good &a$t# and t#e a'o$dan.e o& #arm t#at ($ll >e&all an $nno.ent %arty due to $ts $nFur$ous rel$an.e, t#e &a$lure to a%%ly $t $n t#$s .ase (ould result $n gross tra'esty o& Fust$.e3 Esto%%el >ars CAI &rom ma$ng su.# den$al3 !
As .ategor$.ally %ro'$ded under Art$.le 156 o& t#e C$'$l Code, a;gen.y may >e e<%ress, or $m%l$ed &rom t#e a.ts o& t#e %r$n.$%al, &rom #$s s$len.e or la. o& a.t$on, or #$s &a$lure to re%ud$ate t#e agen.y, no($ng t#at anot#er %erson $s a.t$ng on #$s >e#al& ($t#out aut#or$ty3D
Cons$der$ng t#at t#e &undamental #allmars o& an agen.y are %resent, t#$s Court &$nds $t rat#er %e.ul$ar t#at t#e CA #ad >randed t#e .ontra.tual relat$ons#$% >et(een CAI and ol$day "ra'el as one o& sale3 "#e d$st$n.t$ons >et(een a sale and an agen.y are not d$&&$.ult to d$s.ern and t#$s Court, as early as 1!, #ad already &ormulated t#e gu$del$nes t#at (ould a$d $n d$&&erent$at$ng t#e t(o /0 .ontra.ts3 In Co&&issioner o$ Internal Revenue v. Constantino, t#$s Court eet(een t#e t(o /0 .ontra.ts $s t#e trans&er o& o(ners#$% or t$tle o'er t#e %ro%erty su>Fe.t o& t#e .ontra.t3 In an agen.y, t#e %r$n.$%al reta$ns o(ners#$% and .ontrol o'er t#e %ro%erty and t#e agent merely a.ts on t#e %r$n.$%al=s >e#al& and under #$s $nstru.t$ons $n &urt#eran.e o& t#e o>Fe.t$'es &or (#$.# t#e agen.y (as esta>l$s#ed3 On t#e ot#er #and, t#e .ontra.t $s .learly a sale $& t#e %art$es $ntended t#at t#e del$'ery o& t#e %ro%erty ($ll e&&e.t a rel$n9u$s#ment o& t$tle, .ontrol and o(ners#$% $n su.# a (ay t#at t#e re.$%$ent may do ($t# t#e %ro%erty as #e %leases3 1
S$n.e t#e .om%any reta$ned o(ners#$% o& t#e goods, e'en as $t del$'ered %ossess$on unto t#e dealer &or resale to .ustomers, t#e %r$.e and terms o& (#$.# (ere su>Fe.t to t#e .om%anys .ontrol, t#e relat$ons#$% >et(een t#e .om%any and t#e dealer $s one o& agen.y, tested under t#e &ollo($ng .r$ter$on:
"#e d$&&$.ulty $n d$st$ngu$s#$ng >et(een .ontra.ts o& sale and t#e .reat$on o& an agen.y to sell #as led to t#e esta>l$s#ment o& rules >y t#e a%%l$.at$on o& (#$.# t#$s d$&&$.ulty may >e sol'ed3 "#e de.$s$ons say t#e trans&er o& t$tle or agreement to trans&er $t &or a %r$.e %a$d or %rom$sed $s t#e essen.e o& sale3 I& su.# trans&er %uts t#e trans&eree $n t#e att$tude or %os$t$on o& an o(ner and maes #$m l$a>le to t#e trans&eror as a de>tor &or t#e agreed %r$.e, and not merely as an agent (#o must a..ount &or t#e %ro.eeds o& a resale, t#e transa.t$on $s a saleH (#$le t#e essen.e o& an agen.y to sell $s t#e del$'ery to an agent, not as #$s %ro%erty, >ut as t#e Page 12 of 27
%ro%erty o& t#e %r$n.$%al, (#o rema$ns t#e o(ner and #as t#e r$g#t to .ontrol sales, &$< t#e %r$.e, and terms, demand and re.e$'e t#e %ro.eeds less t#e agents .omm$ss$on u%on sales made3 1 e.#em on Sales, Se.3 )+H 1 e.#em on Agen.y, Se.3 )5H G$ll$ston on Sales, 1H "$edeman on Sales, 13D /Sal$s>ury '3 Broos, ) SE 11, 115110
As to #o( t#e CA #a'e arr$'ed at t#e .on.lus$on t#at t#e .ontra.t >et(een CAI and ol$day "ra'el $s a sale $s .erta$nly .on&ound$ng, .ons$der$ng t#at CAI $s t#e one >ound >y t#e .ontra.ts o& .arr$age em>od$ed >y t#e t$.ets >e$ng sold >y ol$day "ra'el on $ts >e#al&3 It $s und$s%uted t#at CAI and not ol$day "ra'el (#o $s t#e %arty to t#e .ontra.ts o& .arr$age ey ol$day "ra'el ($t# t#$rd %ersons (#o des$re to tra'el '$a Cont$nental A$rl$nes, and t#$s .on.lus$'ely $nd$.ates t#e e<$sten.e o& a %r$n.$%alagent relat$ons#$%3 "#at t#e %r$n.$%al $s >ound >y all t#e o>l$gat$ons .ontra.ted >y t#e agent ($t#$n t#e s.o%e o& t#e aut#or$ty granted to #$m $s .learly %ro'$ded under Art$.le 11! o& t#e C$'$l Code and t#$s .onst$tutes t#e 'ery not$on o& agen.y3
II& In actions base on 4uasi#elict" a principal can onl3 be hel liable for the tort committe b3 its a0ent/s emplo3ees if it has been establishe b3 preponerance of e$ience that the principal 2as also at fault or ne0li0ent or that the principal e1ercise control an super$ision o$er them&
Cons$der$ng t#at ol$day "ra'el $s CAI=s agent, does $t ne.essar$ly &ollo( t#at CAI $s l$a>le &or t#e &ault or negl$gen.e o& ol$day "ra'el=s em%loyeesL C$t$ng China Air Lines, Ltd. v. Court o$ Appeals, et al. , CAI argues t#at $t .annot >e #eld l$a>le &or t#e a.t$ons o& t#e em%loyee o& $ts t$.et$ng agent $n t#e a>sen.e o& an em%loyerem%loyee relat$ons#$%3 +
An e$l$ty &or t#e tort .omm$tted >y $ts agent=s em%loyees3 A %r$or determ$nat$on o& t#e nature o& t#e %assenger=s .ause o& a.t$on $s ne.essary3 I& t#e %assenger=s .ause o& a.t$on aga$nst t#e a$rl$ne .om%any $s %rem$sed on culpa a(uiliana or 9uas$del$.t &or a tort .omm$tted >y t#e em%loyee o& t#e a$rl$ne .om%any=s agent, t#ere must >e an $nde%endent s#o($ng t#at t#e a$rl$ne .om%any (as at &ault or negl$gent or #as .ontr$>uted to t#e negl$gen.e or tortuous .ondu.t .omm$tted >y t#e em%loyee o& $ts agent3 "#e mere &a.t t#at t#e em%loyee o& t#e a$rl$ne .om%any=s agent #as .omm$tted a tort $s not su&&$.$ent to #old t#e a$rl$ne .om%any l$a>le3 "#ere $s no vinculu& )uris >et(een t#e a$rl$ne .om%any and $ts agent=s em%loyees and t#e .ontra.tual relat$ons#$% >et(een t#e a$rl$ne Page 13 of 27
.om%any and $ts agent does not o%erate to .reate a Fur$d$.al t$e >et(een t#e a$rl$ne .om%any and $ts agent=s em%loyees3 Art$.le 15! o& t#e C$'$l Code does not mae t#e %r$n.$%al '$.ar$ously l$a>le &or t#e tort .omm$tted >y $ts agent=s em%loyees and t#e %r$n.$%alagen.y relat$ons#$% per se does not mae t#e %r$n.$%al a %arty to su.# tortH #en.e, t#e need to %ro'e t#e %r$n.$%al=s o(n &ault or negl$gen.e3
On t#e ot#er #and, $& t#e %assenger=s .ause o& a.t$on &or damages aga$nst t#e a$rl$ne .om%any $s >ased on .ontra.tual >rea.# or culpa contractual , $t $s not ne.essary t#at t#ere >e e'$den.e o& t#e a$rl$ne .om%any=s &ault or negl$gen.e3 As t#$s Court %re'$ously stated $n China Air Lines and re$terated $n Air France vs. !ille%o, $n an a.t$on >ased on a >rea.# o& .ontra.t o& .arr$age, t#e aggr$e'ed %arty does not #a'e to %ro'e t#at t#e .ommon .arr$er (as at &ault or (as negl$gent3 All t#at #e #as to %ro'e $s t#e e<$sten.e o& t#e .ontra.t and t#e &a.t o& $ts non%er&orman.e >y t#e .arr$er3D )
S%ouses 4$lor$a=s .ause o& a.t$on on t#e >as$s o& ager=s alleged &raudulent m$sre%resentat$on $s .learly one o& tort or 9uas$del$.t, t#ere >e$ng no %ree<$st$ng .ontra.tual relat$ons#$% >et(een t#em3 "#ere&ore, $t (as $n.um>ent u%on S%ouses 4$lor$a to %ro'e t#at CAI (as e9ually at &ault3
o(e'er, t#e re.ords are de'o$d o& any e'$den.e >y (#$.# CAI=s alleged l$a>$l$ty .an >e su>stant$ated3 A%art &rom t#e$r .la$m t#at CAI must >e #eld l$a>le &or ager=s su%%osed &raud >e.ause ol$day "ra'el $s CAI=s agent, S%ouses 4$lor$a d$d not %resent e'$den.e t#at CAI (as a %arty or #ad .ontr$>uted to ager=s .om%la$ned a.t e$t#er >y $nstru.t$ng or aut#or$M$ng ol$day "ra'el and ager to $ssue t#e sa$d m$sre%resentat$on3
It may seem unFust at &$rst glan.e t#at CAI (ould .ons$der S%ouses 4$lor$a >ound >y t#e terms and .ond$t$ons o& t#e su>Fe.t .ontra.ts, (#$.# ager entered $nto ($t# t#em on CAI=s >e#al&, $n order to deny S%ouses 4$lor$a=s re9uest &or a re&und or ?ernando=s use o& @ourdes= t$.et &or t#e re$ssuan.e o& a ne( one, and s$multaneously .la$m t#at t#ey are not >ound >y ager=s su%%osed m$sre%resentat$on &or %ur%oses o& a'o$d$ng S%ouses 4$lor$a=s .la$m &or damages and ma$nta$n$ng t#e 'al$d$ty o& t#e su>Fe.t .ontra.ts3 It may l$e($se >e argued t#at CAI .annot deny l$a>$l$ty as $t >ene&$ted &rom ager=s a.ts, (#$.# (ere %er&ormed $n .om%l$an.e ($t# ol$day "ra'el=s o>l$gat$ons as CAI=s agent3
o(e'er, a %erson=s '$.ar$ous l$a>$l$ty $s an.#ored on #$s %ossess$on o& .ontrol, (#et#er a>solute or l$m$ted, on t#e tort&easor3 G$t#out su.# .ontrol, t#ere $s not#$ng (#$.#
Page 14 of 27
.ould Fust$&y e$l$ty to a %erson ot#er t#an t#e one (#o .omm$tted t#e tort3 As t#$s Court e<%la$ned $n Can%co v. *anila Railroad Co. : *
-ith respect to e1tra#contractual obli0ation arisin0 from ne0li0ence" 2hether of act or omission , $t $s .om%etent &or t#e leg$slature to ele.t and our @eg$slature #as so ele.ted to l$m$t su.# l$a>$l$ty to .ases $n (#$.# t#e %erson u%on (#om su.# an o>l$gat$on $s $m%osed $s morally .ul%a>le or, on t#e .ontrary, for reasons of public polic3" to e1ten that liabilit3" 2ithout re0ar to the lac5 of moral culpabilit3" so as to inclue responsibilit3 for the ne0li0ence of those persons 2hose acts or omissions are imputable" b3 a le0al fiction" to others 2ho are in a position to e1ercise an absolute or limite control o$er them& "#e leg$slature (#$.# ado%ted our C$'$l Code #as ele.ted to l$m$t e$l$ty ($t# .erta$n (ellde&$ned e<.e%t$ons to .ases $n (#$.# moral .ul%a>$l$ty .an >e d$re.tly $m%uted to t#e %ersons to >e .#arged3 "#$s moral res%ons$>$l$ty may .ons$st $n #a'$ng &a$led to ey reasons o& t#e$r status, o..u%y a %os$t$on o& de%enden.y ($t# res%e.t to t#e %erson made l$a>le &or t#e$r .ondu.t3 /em%#as$s su%%l$ed0 6
It $s $n.um>ent u%on S%ouses 4$lor$a to %ro'e t#at CAI ey %re%onderant e'$den.e3 "#e e<$sten.e o& .ontrol or su%er'$s$on .annot >e %resumed and CAI $s under no o>l$gat$on to %ro'e $ts den$al or nugatory assert$on3 C$t$ng +elen v. +elen, t#$s Court ruled $n Ja#&e v. Apostol, t#at:
5
In +elen v. +elen, t#$s Court ruled t#at $t (as enoug# &or de&endant to deny an alleged em%loyment relat$ons#$%3 "#e de&endant $s under no o>l$gat$on to %ro'e t#e negat$'e a'erment3 "#$s Court sa$d:
It $s an old and (ellsettled rule o& t#e .ourts t#at t#e >urden o& %ro'$ng t#e a.t$on $s u%on t#e %la$nt$&&, and t#at $& #e &a$ls sat$s&a.tor$ly to s#o( t#e &a.ts u%on (#$.# #e >ases #$s .la$m, t#e de&endant $s under no o>l$gat$on to %ro'e #$s e<.e%t$ons3 "#$s rule; $s $n #armony ($t# t#e %ro'$s$ons o& Se.t$on o& t#e Code o& C$'$l Pro.edure #old$ng t#at ea.# %arty must %ro'e #$s o(n a&&$rmat$'e allegat$ons, et.3D /.$tat$ons om$tted0
Page 15 of 27
"#ere&ore, ($t#out a mod$.um o& e'$den.e t#at CAI e$l$ty .an >e $m%osed on CAI &or ager=s su%%osed m$sre%resentat$on3
III3
E$en on the assumption that CAI ma3 be hel liable for the acts of Ma0er" still" Spouses Viloria are not entitle to a refun& Ma0er/s statement cannot be consiere a causal frau that 2oul 6ustif3 the annulment of the sub6ect contracts that 2oul obli0e CAI to inemnif3 Spouses Viloria an return the mone3 the3 pai for the sub6ect tic5ets&
Art$.le 1+!, $n relat$on to Art$.le 1+1 o& t#e C$'$l Code, %ro'$des t#at $& t#e .onsent o& t#e .ontra.t$ng %art$es (as o>ta$ned t#roug# &raud, t#e .ontra.t $s .ons$dered 'o$da>le and may >e annulled ($t#$n &our /)0 years &rom t#e t$me o& t#e d$s.o'ery o& t#e &raud3 On.e a .ontra.t $s annulled, t#e %art$es are o>l$ged under Art$.le 1+5 o& t#e same Code to restore to ea.# ot#er t#e t#$ngs su>Fe.t matter o& t#e .ontra.t, $n.lud$ng t#e$r &ru$ts and $nterest3
On t#e >as$s o& t#e &orego$ng and g$'en t#e allegat$on o& S%ouses 4$lor$a t#at ?ernando=s .onsent to t#e su>Fe.t .ontra.ts (as su%%osedly se.ured >y ager t#roug# &raudulent means, $t $s %la$nly a%%arent t#at t#e$r demand &or a re&und $s tantamount to see$ng &or an annulment o& t#e su>Fe.t .ontra.ts on t#e ground o& '$t$ated .onsent3
G#et#er t#e su>Fe.t .ontra.ts are annulla>le, t#$s Court $s re9u$red to determ$ne (#et#er ager=s alleged m$sre%resentat$on .onst$tutes .ausal &raud3 S$m$lar to t#e d$s%ute on t#e e<$sten.e o& an agen.y, (#et#er &raud attended t#e eo'e, may s.rut$n$Me t#e re.ords $& t#e &$nd$ngs o& t#e CA are .ontrary to t#ose o& t#e R"C3
7nder Art$.le 1++5 o& t#e C$'$l Code, t#ere $s &raud (#en, t#roug# $ns$d$ous (ords or ma.#$nat$ons o& one o& t#e .ontra.t$ng %art$es, t#e ot#er $s $ndu.ed to enter $nto a .ontra.t (#$.#, ($t#out t#em, #e (ould not #a'e agreed to3 In order t#at &raud may '$t$ate .onsent, $t must >e t#e .ausal / dolo causante0, not merely t#e $n.$dental / dolo incidente0, $ndu.ement to t#e ma$ng o& t#e .ontra.t3 In Sa&son v. Court o$ Appeals, .ausal &raud (as de&$ned as a +!
+1
Page 16 of 27
de.e%t$on em%loyed >y one %arty %r$or to or s$multaneous to t#e .ontra.t $n order to se.ure t#e .onsent o& t#e ot#er3D +
Also, &raud must >e ser$ous and $ts e<$sten.e must >e esta>l$s#ed >y .lear and .on'$n.$ng e'$den.e3 As ruled >y t#$s Court $n Sierra v. on. Court o$ Appeals, et al. , mere %re%onderan.e o& e'$den.e $s not ade9uate: ++
?raud must also >e d$s.ounted, &or a..ord$ng to t#e C$'$l Code:
Art3 1++53 "#ere $s &raud (#en, t#roug# $ns$d$ous (ords or ma.#$nat$ons o& one o& t#e .ontra.t$ng %art$es, t#e ot#er $s $ndu.ed to enter $nto a .ontra.t (#$.# ($t#out t#em, #e (ould not #a'e agreed to3
Art3 1+))3 In order t#at &raud may mae a .ontra.t 'o$da>le, $t s#ould >e ser$ous and s#ould not #a'e >een em%loyed >y >ot# .ontra.t$ng %art$es3
"o 9uote "olent$no aga$n, t#e m$sre%resentat$on .onst$tut$ng t#e &raud must >e esta>l$s#ed >y &ull, .lear, and .on'$n.$ng e'$den.e, and not merely >y a %re%onderan.e t#ereo&3 "#e de.e$t must >e ser$ous3 "#e &raud $s ser$ous (#en $t $s su&&$.$ent to $m%ress, or to lead an ord$nar$ly %rudent %erson $nto errorH t#at (#$.# .annot de.e$'e a %rudent %erson .annot >e a ground &or null$ty3 "#e .$r.umstan.es o& ea.# .ase s#ould >e .ons$dered, ta$ng $nto a..ount t#e %ersonal .ond$t$ons o& t#e '$.t$m3D +)
A&ter met$.ulously %or$ng o'er t#e re.ords, t#$s Court &$nds t#at t#e &raud alleged >y S%ouses 4$lor$a #as not >een sat$s&a.tor$ly esta>l$s#ed as .ausal $n nature to (arrant t#e annulment o& t#e su>Fe.t .ontra.ts3 In &a.t, S%ouses 4$lor$a &a$led to %ro'e >y .lear and .on'$n.$ng e'$den.e t#at ager=s statement (as &raudulent3 S%e.$&$.ally, S%ouses 4$lor$a &a$led to %ro'e t#at /a0 t#ere (ere $ndeed a'a$la>le seats at Amtra &or a tr$% to Ne( Jersey on August 1+, 1 at t#e t$me t#ey s%oe ($t# ager on July 1, 1H />0 ager ne( a>out t#$sH and /.0 t#at s#e %ur%osely $n&ormed t#em ot#er($se3
Page 17 of 27
"#$s Court &$nds t#e only %roo& o& ager=s alleged &raud, (#$.# $s ?ernando=s test$mony t#at an Amtra #ad assured #$m o& t#e %erenn$al a'a$la>$l$ty o& seats at Amtra, to >e (ant$ng3 As CAI .orre.tly %o$nted out and as ?ernando adm$tted, $t (as %oss$>le t#at dur$ng t#e $nter'en$ng %er$od o& t#ree /+0 (ees &rom t#e t$me ?ernando %ur.#ased t#e su>Fe.t t$.ets to t#e t$me #e taled to sa$d Amtra em%loyee, ot#er %assengers may #a'e .an.elled t#e$r >oo$ngs and reser'at$ons ($t# Amtra, ma$ng $t %oss$>le &or Amtra to a..ommodate t#em3 Indeed, t#e e<$sten.e o& &raud .annot >e %ro'ed >y mere s%e.ulat$ons and .onFe.tures3 ?raud $s ne'er l$g#tly $n&erredH $t $s good &a$t# t#at $s3 7nder t#e Rules o& Court, $t $s %resumed t#at a %erson $s $nno.ent o& .r$me or (rong and t#at %r$'ate transa.t$ons #a'e >een &a$r and regular3 S%ouses 4$lor$a &a$led to o'er.ome t#$s %resum%t$on3 +*
IV& Assumin0 the contrar3" Spouses Viloria are ne$ertheless eeme to ha$e ratifie the sub6ect contracts&
E'en assum$ng t#at ager=s re%resentat$on $s .ausal &raud, t#e su>Fe.t .ontra.ts #a'e >een $m%l$edly rat$&$ed (#en S%ouses 4$lor$a de.$ded to eFe.t t$.ets &or t#e %ur.#ase o& ne( ones3 7nder Art$.le 1+ o& t#e C$'$l Code, rat$&$.at$on ele .ontra.t3D
Rat$&$.at$on o& a 'o$da>le .ontra.t $s de&$ned under Art$.le 1++ o& t#e C$'$l Code as &ollo(s:
Art3 1++3 Rat$&$.at$on may >e e&&e.ted e<%ressly or ta.$tly3 It $s understood t#at t#ere $s a ta.$t rat$&$.at$on $&, ($t# no(ledge o& t#e reason (#$.# renders t#e .ontra.t 'o$da>le and su.# reason #a'$ng .eased, t#e %erson (#o #as a r$g#t to $n'oe $t s#ould e
Im%l$ed rat$&$.at$on may tae d$'erse &orms, su.# as >y s$len.e or a.9u$es.en.eH >y a.ts s#o($ng a%%ro'al or ado%t$on o& t#e .ontra.tH or >y a..e%tan.e and retent$on o& >ene&$ts &lo($ng t#ere&rom3 +6
Page 18 of 27
S$multaneous ($t# t#e$r demand &or a re&und on t#e ground o& ?ernando=s '$t$ated .onsent, S%ouses 4$lor$a l$e($se ased &or a re&und >ased on CAI=s su%%osed >ad &a$t# $n reneg$ng on $ts underta$ng to re%la.e t#e su>Fe.t t$.ets ($t# a round tr$% t$.et &rom an$la to @os Angeles3
In do$ng so, S%ouses 4$lor$a are a.tually as$ng &or a res.$ss$on o& t#e su>Fe.t .ontra.ts >ased on .ontra.tual >rea.#3 Resolut$on, t#e a.t$on re&erred to $n Art$.le 111, $s >ased on t#e de&endant=s >rea.# o& &a$t#, a '$olat$on o& t#e re.$%ro.$ty >et(een t#e %art$es and $n Solar arvest, Inc. v. avao Corru%ated Carton Corporation, t#$s Court ruled t#at a .la$m &or a re$m>ursement $n '$e( o& t#e ot#er %arty=s &a$lure to .om%ly ($t# #$s o>l$gat$ons under t#e .ontra.t $s one &or res.$ss$on or resolut$on3 +
+5
o(e'er, annulment under Art$.le 1+! o& t#e C$'$l Code and res.$ss$on under Art$.le 111 are t(o /0 $n.ons$stent remed$es3 In resolut$on, all t#e elements to mae t#e .ontra.t 'al$d are %resentH $n annulment, one o& t#e essent$al elements to a &ormat$on o& a .ontra.t, (#$.# $s .onsent, $s a>sent3 In resolut$on, t#e de&e.t $s $n t#e .onsummat$on stage o& t#e .ontra.t (#en t#e %art$es are $n t#e %ro.ess o& %er&orm$ng t#e$r res%e.t$'e o>l$gat$onsH $n annulment, t#e de&e.t $s already %resent at t#e t$me o& t#e negot$at$on and %er&e.t$on stages o& t#e .ontra.t3 A..ord$ngly, >y %ursu$ng t#e remedy o& res.$ss$on under Art$.le 111, t#e 4$lor$as #ad $m%l$edly adm$tted t#e 'al$d$ty o& t#e su>Fe.t .ontra.ts, &or&e$t$ng t#e$r r$g#t to demand t#e$r annulment3 A %arty .annot rely on t#e .ontra.t and .la$m r$g#ts or o>l$gat$ons under $t and at t#e same t$me $m%ugn $ts e<$sten.e or 'al$d$ty3 Indeed, l$t$gants are enFo$ned &rom ta$ng $n.ons$stent %os$t$ons3 +
V& Contracts cannot be rescine for a sli0ht or casual breach&
CAI cannot insist on the non-trans$erailit# o$ the su)ect tic/ets.
Cons$der$ng t#at t#e su>Fe.t .ontra.ts are not annulla>le on t#e ground o& '$t$ated .onsent, t#e nerea.# o& $ts underta$ng to $ssue ne( t$.ets u%on surrender o& t#e su>Fe.t t$.etsLD Page 19 of 27
Art$.le 111, as %resently (orded, states:
"#e %o(er to res.$nd o>l$gat$ons $s $m%l$ed $n re.$%ro.al ones, $n .ase one o& t#e o>l$gors s#ould not .om%ly ($t# (#at $s $n.um>ent u%on #$m3
"#e $nFured %arty may .#oose >et(een t#e &ul&$lment and t#e res.$ss$on o& t#e o>l$gat$on, ($t# t#e %ayment o& damages $n e$t#er .ase3 e may also see res.$ss$on, e'en a&ter #e #as .#osen &ul&$llment, $& t#e latter s#ould >e.ome $m%oss$>le3
"#e .ourt s#all de.ree t#e res.$ss$on .la$med, unless t#ere >e Fust .ause aut#or$M$ng t#e &$<$ng o& a %er$od3
"#$s $s understood to >e ($t#out %reFud$.e to t#e r$g#ts o& t#$rd %ersons (#o #a'e a.9u$red t#e t#$ng, $n a..ordan.e ($t# art$.les 1+5* and 1+55 and t#e ortgage @a(3
A..ord$ng to S%ouses 4$lor$a, CAI a.ted $n >ad &a$t# and >rea.#ed t#e su>Fe.t .ontra.ts (#en $t re&used to a%%ly t#e 'alue o& @ourdes= t$.et &or ?ernando=s %ur.#ase o& a round tr$% t$.et to @os Angeles and $n re9u$r$ng #$m to %ay an amount #$g#er t#an t#e %r$.e &$y ot#er a$rl$ne .om%an$es3
In $ts ar.# ), 15 letter, CAI stated t#at nonre&unda>le t$.ets may >e used as a &orm o& %ayment to(ard t#e %ur.#ase o& anot#er Cont$nental t$.et &or 8*3!!, %er t$.et, re$ssue &ee /8*!3!!, %er t$.et, &or t$.ets %ur.#ased %r$or to O.to>er +!, 103D
Clearly, t#ere $s not#$ng $n t#e a>o'e9uoted se.t$on o& CAI=s letter &rom (#$.# t#e restr$.t$on on t#e nontrans&era>$l$ty o& t#e su>Fe.t t$.ets .an >e $n&erred3 In &a.t, t#e (ords used >y CAI $n $ts letter su%%orts t#e %os$t$on o& S%ouses 4$lor$a, t#at ea.# o& t#em .an use t#e t$.et under t#e$r name &or t#e %ur.#ase o& ne( t$.ets (#et#er &or t#emsel'es or &or some ot#er %erson3
Page 20 of 27
oreo'er, as CAI adm$tted, $t (as only (#en ?ernando #ad e<%ressed #$s $nterest to use t#e su>Fe.t t$.ets &or t#e %ur.#ase o& a round tr$% t$.et >et(een an$la and @os Angeles t#at #e (as $n&ormed t#at #e .annot use t#e t$.et $n @ourdes= name as %ayment3
Contrary to CAI=s .la$m, t#at t#e su>Fe.t t$.ets are nontrans&era>le .annot >e $m%l$ed &rom a %la$n read$ng o& t#e %ro'$s$on %r$nted on t#e su>Fe.t t$.ets stat$ng t#at t;o t#e ey ea.# .arr$er are su>Fe.t to: /a0 %ro'$s$ons .onta$ned $n t#$s t$.et, < < < /$$$0 .arr$er=s .ond$t$ons o& .arr$age and related regulat$ons (#$.# are made %art #ereo& /and are a'a$la>le on a%%l$.at$on at t#e o&&$.es o& .arr$er0 < < <3D As a .ommon .arr$er (#ose >us$ness $s $m>ued ($t# %u>l$. $nterest, t#e eed &rom ta$ng ad'antage o& any am>$gu$ty $n t#e .ontra.t o& .arr$age to $m%ute no(ledge on $ts %assengers o& and demand .om%l$an.e ($t# a .erta$n .ond$t$on or underta$ng t#at $s not .learly st$%ulated3 S$n.e t#e %ro#$>$t$on on trans&era>$l$ty $s not (r$tten on t#e &a.e o& t#e su>Fe.t t$.ets and CAI &a$led to $n&orm S%ouses 4$lor$a t#ereo&, CAI .annot re&use to a%%ly t#e 'alue o& @ourdes= t$.et as %ayment &or ?ernando=s %ur.#ase o& a ne( t$.et3
CAI/s refusal to accept !oures/ tic5et for the purchase of a ne2 tic5et for Fernano is onl3 a casual breach&
Nonet#eless, t#e r$g#t to res.$nd a .ontra.t &or non%er&orman.e o& $ts st$%ulat$ons $s not a>solute3 "#e general rule $s t#at res.$ss$on o& a .ontra.t ($ll not >e %erm$tted &or a sl$g#t or .asual >rea.#, >ut only &or su.# su>stant$al and &undamental '$olat$ons as (ould de&eat t#e 'ery o>Fe.t o& t#e %art$es $n ma$ng t#e agreement3 G#et#er a >rea.# $s su>stant$al $s largely determ$ned >y t#e attendant .$r.umstan.es3 )!
)1
G#$le CAI=s re&usal to allo( ?ernando to use t#e 'alue o& @ourdes= t$.et as %ayment &or t#e %ur.#ase o& a ne( t$.et $s unFust$&$ed as t#e nontrans&era>$l$ty o& t#e su>Fe.t t$.ets (as not .learly st$%ulated, $t .annot, #o(e'er >e .ons$dered su>stant$al3 "#e endorsa>$l$ty o& t#e su>Fe.t t$.ets $s not an essent$al %art o& t#e underly$ng .ontra.ts and CAI=s &a$lure to .om%ly $s not essent$al to $ts &ul&$llment o& $ts underta$ng to $ssue ne( t$.ets u%on S%ouses 4$lor$a=s surrender o& t#e su>Fe.t t$.ets3 "#$s Court taes note o& CAI=s ($ll$ngness to %er&orm $ts %r$n.$%al o>l$gat$on and t#$s $s to a%%ly t#e %r$.e o& t#e t$.et $n ?ernando=s name to t#e %r$.e o& t#e round tr$% t$.et >et(een an$la and @os Angeles3 CAI (as l$e($se ($ll$ng to a..e%t t#e t$.et $n @ourdes= name as &ull or %art$al %ayment as t#e .ase may >e &or Page 21 of 27
t#e %ur.#ase o& any t$.et, al>e$t under #er name and &or #er e<.lus$'e use3 In ot#er (ords, CAI=s ($ll$ngness to .om%ly ($t# $ts underta$ng under $ts ar.# ), 15 .annot >e dou>ted, al>e$t ta$nted ($t# $ts erroneous $ns$sten.e t#at @ourdes= t$.et $s nontrans&era>le3
oreo'er, S%ouses 4$lor$a=s demand &or res.$ss$on .annot %ros%er as CAI .annot >e solely &aulted &or t#e &a.t t#at t#e$r agreement &a$led to .onsummate and no ne( t$.et (as $ssued to ?ernando3 S%ouses 4$lor$a #a'e no r$g#t to $ns$st t#at a s$ngle round tr$% t$.et >et(een an$la and @os Angeles s#ould >e %r$.ed at around 85*63!! and re&use to %ay t#e d$&&eren.e >et(een t#e %r$.e o& t#e su>Fe.t t$.ets and t#e amount &$y CAI3 "#e %et$t$oners &a$led to allege, mu.# less %ro'e, t#at CAI #ad o>l$ged $tsel& to $ssue to t#em t$.ets &or any &l$g#t any(#ere $n t#e (orld u%on t#e$r surrender o& t#e su>Fe.t t$.ets3 In $ts ar.# ), 15 letter, $t (as .learly stated t#at n;onre&unda>le t$.ets may >e used as a &orm o& %ayment to(ard t#e %ur.#ase o& anot#er Cont$nental t$.etD and t#ere $s not#$ng $n $t suggest$ng t#at CAI #ad o>l$ged $tsel& to %rote.t S%ouses 4$lor$a &rom any &lu.tuat$on $n t#e %r$.es o& t$.ets or t#at t#e surrender o& t#e su>Fe.t t$.ets ($ll >e .ons$dered as &ull %ayment &or any t$.et t#at t#e %et$t$oners $ntend to >uy regardless o& a.tual %r$.e and dest$nat$on3 "#e CA (as .orre.t $n #old$ng t#at $t $s CAI=s r$g#t and e<.lus$'e %rerogat$'e to &$< t#e %r$.es &or $ts ser'$.es and $t may not >e .om%elled to o>ser'e and ma$nta$n t#e %r$.es o& ot#er a$rl$ne .om%an$es3 )
)+
"#e .on&l$.t as to t#e endorsa>$l$ty o& t#e su>Fe.t t$.ets $s an altoget#er d$&&erent matter, (#$.# does not %re.lude CAI &rom &$<$ng t#e %r$.e o& a round tr$% t$.et >et(een an$la and @os Angeles $n an amount $t deems %ro%er and (#$.# does not %ro'$de S%ouses 4$lor$a an e<.use not to %ay su.# %r$.e, al>e$t su>Fe.t to a redu.t$on .om$ng &rom t#e 'alue o& t#e su>Fe.t t$.ets3 It .annot >e den$ed t#at S%ouses 4$lor$a #ad t#e .on.om$tant o>l$gat$on to %ay (#ate'er $s not .o'ered >y t#e 'alue o& t#e su>Fe.t t$.ets (#et#er or not t#e su>Fe.t t$.ets are trans&era>le or not3
"#ere $s also no s#o($ng t#at S%ouses 4$lor$a (ere d$s.r$m$nated aga$nst $n >ad &a$t# >y >e$ng .#arged ($t# a #$g#er rate3 "#e only e'$den.e t#e %et$t$oners %resented to %ro'e t#at t#e %r$.e o& a round tr$% t$.et >et(een an$la and @os Angeles at t#at t$me (as only 85*63!! $s a ne(s%a%er ad'ert$sement &or anot#er a$rl$ne .om%any, (#$.# $s $nadm$ss$>le &or >e$ng #earsay e'$den.e, t($.e remo'ed3D Ne(s%a%er .l$%%$ngs are #earsay $& t#ey (ere o&&ered &or t#e %ur%ose o& %ro'$ng t#e trut# o& t#e matter alleged3 As ruled $n Feria v. Court o$ Appeals,: ))
N;e(s%a%er art$.les amount to #earsay e'$den.e, t($.e remo'edD and are t#ere&ore not only $nadm$ss$>le >ut ($t#out any %ro>at$'e 'alue at all (#et#er o>Fe.ted to or not,unless o&&ered &or a %ur%ose ot#er t#an %ro'$ng t#e trut# o& t#e matter asserted3 In t#$s .ase, t#e ne(s art$.le $s adm$ss$>le only as e'$den.e t#at Page 22 of 27
su.# %u>l$.at$on does e<$st ($t# t#e tenor o& t#e ne(s t#ere$n stated3 /.$tat$ons om$tted0 )*
"#e re.ords o& t#$s .ase demonstrate t#at >ot# %art$es (ere e9ually $n de&aultH #en.e, none o& t#em .an see Fud$.$al redress &or t#e .an.ellat$on or resolut$on o& t#e su>Fe.t .ontra.ts and t#ey are t#ere&ore >ound to t#e$r res%e.t$'e o>l$gat$ons t#ereunder3 As t#e 1st senten.e o& Art$.le 11 %ro'$des: Art3 113 In case both parties ha$e committe a breach of the obli0ation" the liabilit3 of the first infractor shall be e4uitabl3 tempere b3 the courts3 I& $t .annot >e determ$ned (#$.# o& t#e %art$es &$rst '$olated t#e .ontra.t, t#e same s#all >e deemed eear #$s o(n damages3 /em%#as$s su%%l$ed0
"#ere&ore, CAI=s l$a>$l$ty &or damages &or $ts re&usal to a..e%t @ourdes= t$.et &or t#e %ur.#ase o& ?ernando=s round tr$% t$.et $s o&&set >y S%ouses 4$lor$a=s l$a>$l$ty &or t#e$r re&usal to %ay t#e amount, (#$.# $s not .o'ered >y t#e su>Fe.t t$.ets3 oreo'er, t#e .ontra.t >et(een t#em rema$ns, #en.e, CAI $s duty >ound to $ssue ne( t$.ets &or a dest$nat$on .#osen >y S%ouses 4$lor$a u%on t#e$r surrender o& t#e su>Fe.t t$.ets and S%ouses 4$lor$a are o>l$ged to %ay (#ate'er amount $s not .o'ered >y t#e 'alue o& t#e su>Fe.t t$.ets3
"#$s Court made a s$m$lar rul$ng $n Central +an/ o$ the 0hilippines v. Court o$ Appeals3 "#us: )6
S$n.e >ot# %art$es (ere $n de&ault $n t#e %er&orman.e o& t#e$r res%e.t$'e re.$%ro.al o>l$gat$ons, t#at $s, Island Sa'$ngs Ban &a$led to .om%ly ($t# $ts o>l$gat$on to &urn$s# t#e ent$re loan and Sul%$.$o 3 "olent$no &a$led to .om%ly ($t# #$s o>l$gat$on to %ay #$s P1,!!!3!! de>t ($t#$n + years as st$%ulated, t#ey are >ot# l$a>le &or damages3
Art$.le 11 o& t#e C$'$l Code %ro'$des t#at $n .ase >ot# %art$es #a'e .omm$tted a >rea.# o& t#e$r re.$%ro.al o>l$gat$ons, t#e l$a>$l$ty o& t#e &$rst $n&ra.tor s#all >e e9u$ta>ly tem%ered >y t#e .ourts3 GE rule t#at t#e l$a>$l$ty o& Island Sa'$ngs Ban &or damages $n not &urn$s#$ng t#e ent$re loan $s o&&set >y t#e l$a>$l$ty o& Sul%$.$o 3 "olent$no &or damages, $n t#e &orm o& %enalt$es and sur.#arges, &or not %ay$ng #$s o'erdue P1,!!!3!! de>t3 < < <3 )
Page 23 of 27
Anot#er .ons$derat$on t#at m$l$tates aga$nst t#e %ro%r$ety o& #old$ng CAI l$a>le &or moral damages $s t#e a>sen.e o& a s#o($ng t#at t#e latter a.ted &raudulently and $n >ad &a$t#3 Art$.le ! o& t#e C$'$l Code re9u$res e'$den.e o& >ad &a$t# and &raud and moral damages are generally not re.o'era>le $n culpa contractual e<.e%t (#en >ad &a$t# #ad >een %ro'en3 "#e a(ard o& e
)
-.EREFORE, %rem$ses .ons$dered, t#e $nstant Pet$t$on $s DENIED3
SO ORDERED3
7IENVENIDO !& RE+ES
Asso.$ate Just$.e
-E CONCUR,
AN%ONIO %& CARPIO
Asso.$ate Just$.e
8OSE POR%U'A! PERE9
MARIA !OURDES P& A& SERENO Page 24 of 27
Asso.$ate Just$.e
Asso.$ate Just$.e
ES%E!A M& PER!AS#7ERNA7E
Asso.$ate Just$.e
A%%ES%A%ION
I attest t#at t#e .on.lus$ons $n t#e a>o'e -e.$s$on #ad >een rea.#ed $n .onsultat$on >e&ore t#e .ase (as ass$gned to t#e (r$ter o& t#e o%$n$on o& t#e Court=s -$'$s$on3
AN%ONIO %& CARPIO
Asso.$ate Just$.e C#a$r%erson, Se.ond -$'$s$on
C E R % I F I C A% I O N
Pursuant to Se.t$on 1+, Art$.le 4III o& t#e Const$tut$on and t#e -$'$s$on C#a$r%ersons Attestat$on, I .ert$&y t#at t#e .on.lus$ons $n t#e a>o'e -e.$s$on #ad >een rea.#ed $n .onsultat$on >e&ore t#e .ase (as ass$gned to t#e (r$ter o& t#e o%$n$on o& t#e Court=s -$'$s$on3 Page 25 of 27
RENA%O C& CORONA
C#$e& Just$.e ∗
Add$t$onal em>er $n l$eu o& Asso.$ate Just$.e Arturo -3 Br$on %er S%e.$al Order No3 11) dated January , !13
1 Penned >y Asso.$ate Just$.e on$na Are'aloZenarosa, ($t# Asso.$ate Just$.es Isa$as P3 -$.d$.an and Ramon 3 Bato, Jr3, .on.urr$ngH rollo, %%3 )*)3 2 Id3 at *+3 3 Id3 at 6)3 4 Id3 at 6*3 5 Id3 at 63 6 Id3 at 653 7 Id3 at 663 8 Id3 at 5!3 9 Id3 at 5*3 10 Id3 at 5)3 11 Id3 at 5+3 12 Id3 at 5)3 13 Id3 at *!*13 14 Id3 at *3 15 Id3 at 1)3 16 Id3 at 1*3 17 See eirs o$ Jose Li& v. Li&, 23R3 No3 16!, ar.# +, !1! , 61) SCRA 1)1, 1)H 1nti&are, Jr. v. Spouses 2lep, 23R3 No3 1*), January !, !!6, ) SCRA *, 6*3 18 11 P#$l /1503 19 Id3 at 6, .$t$ng Art$.les 1565 and 1551, Ne( C$'$l CodeH 11 anresa ))+H ) San.#eM Roman )5, nd Ed3H * S.ae'ola, )+, 6H "olent$no, Comments, C$'$l Code o& t#e P#$l$%%$nes, %3+)!, 'ol3 *, 1* Ed3,Colu&ia 3niversit# Clu v. i%%ins, -3C3N3Y3, + &3 Su%%3 *, *)H Valentine 1il Co. v. 4oun% , 1! P3 d 15!, 15*H ) C3J3S3 )H Valentine 1il Co. v. 0o5ers, * N3G3 d 16!, 16+, 1* Ne>3 5H 0urnell v. Cit# o$ Florence, 1* So3 )1, Ala3 A%%3 *16H Stro&an *otor Co. v. +ro5nH )+ P3 1++, 16 O3 +63 20 0hilippine Airlines, Inc. v. CA, +* P#$l +!+, ++ /1603 21 23R3 No3 @*6, ?e>ruary , 1!, +1 SCRA 3 22 Id3 at 5*3 23 6) P#$l 1* /1!03
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24 23R3 No3 16*66, -e.em>er 1*, !1!, 6+5 SCRA )3 25 +5 P#$l 65 /11503 26 Id3 at *63 27 1+ P#$l ! /1!03 28 23R3 No3 16+6!, No'em>er , !!5, * SCRA )13 29 Id3 at *1*3 30 See 6on%son v. 2&er%enc# 0a5nshop +ula, Inc., 23R3 No3 165), 1* January !1!, 61! SCRA 1*!, 1*, .$t$ng 7oodhouse v. alili, + P#$l *6, *+ /1*+03 31 23R3 No3 1!5)*, No'em>er *, 1), +5 SCRA +3 32 Id3 at )!)3 33 23R3 No3 !!, July ), 1, 11 SCRA 5*3 34 Id3 at +, .$t$ng "olent$no, Commentar$es on t#e C$'$l Code, 4ol3 ), %%3 *!5, *1)3 35 6rinidad v. Inter&ediate Appellate Court, 23R3 No3 6*, -e.em>er +, 11, !) SCRA *), *+!, .$t$ng Rule 1+1, Se.t$ons */a0 and */%03 36 Acu8a v. +atac 0roducers Coop. */t%. Ass., 16 P#$l 56, ! /1603 37 eirs o$ So$ia 'uiron%, v. evelop&ent +an/ o$ the 0hilippines, 23R3 No3 1+))1, -e.em>er +, !!, 6!6 SCRA *)+, **!3 38 23R3 No3 16565, July 6, !1!, 6* SCRA ))53 39 !on9ales v. Cli&a *inin% Ltd., ) P#$l 65, 6 /!!*03 40 See +arredo v. Lea8o, 23R3 No3 1*66, June ), !!), )+1 SCRA 1!6, 11*3 41 See Central +an/ o$ the 0hilippines v. Spouses +ichara , +5* P#$l **+, *6* /!!!0, .$t$ng Ver&en Realt# evelop&ent Corporation v. Court o$ Appeals, et al 3, ) SCRA *), ***3 42 Rollo, %3 63 43 Id3 at *3 44 +5 P#$l )1 /!!!03 45 Id3 at )+3 46 + P#$l 66 /15*03 47 Id3 at 63 48 See 4oido v. Court o$ Appeals, +)6 P#$l 1, 1+ /103 49 *ahina# v. Att#. Velas(ue9, Jr., )6) P#$l 1)6, 1*! /!!)03
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