Turner v Lorenzo Shipping

 Turner  Turner v. v. Lorenzo Shipping Corporation Corporation G.R. No. 157479 Facts: •

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etitioners hi!ip an" #!nora Turner $ere the o$ners o% 1&'1'&''' shares o%  stoc(s o% Respon"ent Lorenzo Shipping Corporation. etitioners vote" against the restriction o% pre)e*ptive right to ne$!+ issue" stoc(s& to ,e e-ecte" via the a*en"*ent o% the artic!es o% incorporation o%  the Respon" espon"ent ent Corpor Corporati ation on.. The+ The+ a!!ege a!!ege" " that that it is preu preu"i "icia cia!! to their their interests as shareho!"ers.  Thus& through through the e/ercise e/ercise o% their appraisa! right& the+ "e*an"e" the pa+*ent o% their shares at 0.072share 0.072share 30&09&7'.''. Respon"ent Respon"ent Corporation countere" that it $as an accepta,!e a*ount a!!eging that that&& the the F6 F6 o% etit etitio ione ners rs88 shar shares es ,e%o ,e%orre the the i*p! i*p!e* e*en enta tati tion on o% the the corporate action to "en+ pre)e*ptive right $as at '.412share 3414&1''.''. Respo espon" n"en entt Corp Corpor orat atio ion n %urt %urthe herr a!!e a!!ege ge" " that that the the corp corpor orat atio ion n ha" ha" no unrestricte" retaine" earnings at the ti*e the "e*an" $as *a"e. isagr isagree* ee*ent ent to stoc( stoc( va!uat va!uation ion !e" to the const constitu itutio tion n o% an appra appraisa isa!! co**ittee $hich va!ue" the shares in "ispute at 0.542share 30&55&'''.''. etitioners then as(e" %or pa+*ent at sai" va!ue p!us 0 interest per *onth %ro* the "ate o% origina! "e*an". Respon"ent Corporation& through a !etter& to!" etitioners that the+ cannot pa+ "ue to the a,sence o% ;R#& an" that the corporation ha" a "ee o% the case pursuant to the ?nteri* Ru!es o% ?ntracorporate ispute.  The case $as ra>e" in RTC 6ani!a& the court $hich e/ercise e/ercise territoria! territoria!  uris"iction  uris"iction in the p!ace $here the principa! o@ce o% Respon"ent Respon"ent Corporation is %oun" RTC 6ani!a& in ru!ing in %avor o% the etitioners an" or"ering the Respon"ent to pa+& state" that the Corporation Co"e "oes not reAuire that ;R# *ust e/ist at the ti*e o% "e*an". #ven i% there is no ;R# at such ti*e& i% there $ou!" ,e ;R# !ater& the F6 o% the stoc(s sha!! ,e pai"& provi"e" that there *ust ,e su@cient %un"s to cover cre"itors a%ter such pa+*ent. Respon"ents& aggrieve"& e!evate" the case to the Court o% Bppea!s $hich reverse" the RTC ecision an" enoine" the pa+*ent to the petitioners. This pro*pte" the etitioners to e!evate the sa*e to the Supre*e Court& thus& this recourse.

?ssue: hether or not the Court o% Bppea!s erre" in reversing the RTC ecision. Ru!ing: •

No. The RTC erre" in or"ering the Respon"ent Corporation to pa+& an" that the sa*e e/cee"e" in the e/ercise e/ercise o% its uris"iction in ren"ering u"g*ent in %avor o% etitioners an" in the issuance o% $rit o% e/ecution. B stoc( ho!"er $ho "issents certain corporate actions has the right to "e*an" F6 o% his share 3appraisa! 3appraisa! right& provi"e" that the corporation has ;R# as provi"e" %or un"er Sec. 1 o% the Corporation Co"e. Such right *a+ ,e e/ercise" $hen there is a change in the Bo? preu"icing the interests o% the stoc(ho!"er. No pa+*ent sha!! ,e *a"e un!ess there are unrestricte" retaine" earnings in its ,oo(s to cover such pa+*ent. a+*ent ,+ the corporation to a "issenting stoc(ho!"er e/ercising his appraisa! right $ithout the e/istence o% ;R# is in vio!ation o% the trust %un" "octrine $hich proscri,es the "istri,ution o% assets to a stoc(ho!"er $ithout
a+*ent *a"e un"er such circu*stance is preu"icia! to the corporate cre"itors an" is nu!! an" voi". Cre"itors are a!$a+s pre%erre" over stoc(ho!"ers. •

etitioners8 cause o% action is pre*ature& ,ecause there is no ;R# at the ti*e o% "e*an". Right to "e*an" has not +et accrue". No va!i" "e*an"& no actiona,!e $rong. The su,seAuent e/istence o% ;R# "oes not cure the !ac( o%  cause o% action. etition %or Certiorari enie". Deah.