Final Collated Commercial Law Digests

8/12/2019 Final Collated Commercial Law Digests

1/193

BETTY L. CAMPOSCOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

PHILIPPINE DEPOSIT INSURANCE CORPORATION VS. CITIBANK, N.A. AND BANK OF AMERICAG.R. NO. 170290 APRIL 11, 2012!

FACTS

PDIC "#$%&"'(% )$ (*)+$)'#$ #- '( /## #- )""#&$' #- C'/)$ )$% %"#(3(% ')'C'/)$, $ '( "#&3( #- ' /)$$4 /&$(, 3("((% -3#+ ' ()% #--"( )$% #'(3 -#3(4$ /3)$"() '#')5 #- P11,926,16,908.00 $ %#55)3, "#(3(% / C(3'-")'( #- D#55)3 T+( D(#' ')' ;(3($'(3('B3)$"(


2/193

TRYLL G. CHIUCOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

STEELCASE, INC. VS. DESIGN INTERNATIONAL SELECTIONS, INC.G.R. NO. 17199@, APRIL 18, 2012!

FACTS:

P(''#$(3 S'((5")(, I$". S'((5")(! ) -#3(4$ "#3#3)'#$ (*'$4 &$%(3 '( 5); #- '(U$'(% S')'( #- A+(3"), )$% ($4)4(% $ '( +)$&-)"'&3( #- #--"( -&3$'&3( ;' %()5(3;#35%;%(. R(#$%($' D(4$ I$'(3$)'#$)5 S(5("'#$, I$". DISI! ) "#3#3)'#$ (*'$4 &$%(3P5$( L); )$% ($4)4(% $ '( -&3$'&3( /&$(. S'((5")( )$% DISI #3)55 ($'(3(% $'# )%()5(3 )43((+($' ;(3(/ S'((5")( 43)$'(% DISI '( 34' '# +)3(', (55, %'3/&'(, $')55, )$%(3"( ' 3#%&"' '# ($%


3/193

"#$%(3(% '# /( %#$4 /&$( $ '( P5$( / ' )"' #- )#$'$4 ) %'3/&'#3 ) ' -)55 &$%(3#$( #- '( (*"('#$ &$%(3 R.A. N#. 702.

2! DISI ('#(% -3#+ ")55($4$4 S'((5")( 5(4)5 "))"' '# &(.I- $%((% S'((5")( )% /(($ %#$4 /&$( $ '( P5$( ;'#&' ) 5"($(, DISI ;#&5%

$#$('(5( /( ('#(% -3#+ ")55($4$4 '( -#3+(3 5(4)5 "))"' '# &(. B )"$#;5(%4$4 '("#3#3)'( ($'' #- S'((5")( )$% ($'(3$4 $'# ) %()5(3 )43((+($' ;' ' )$% (($ /($(-'$4 -3#+', DISI ('#(% -3#+ &('#$$4 S'((5")( (*'($"( )$% "))"' '# &(.

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

W5( ' (($')5 '# % '( #&$% &/5" #5" /($% '( 3&5( ')' %($( &$5"($(%-#3(4$ "#3#3)'#$ %#$4 /&$( $ '( P5$( )""( '# #&3 "#&3', ' +&' $((3 /( &(% '#-3&'3)'( '( ($% #- ?&'"( / /("#+$4 )$ )55


4/193

ALBERT G. CONGCOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

LISAM ENTERPRISES INC. VS. BANCO DEORO UNIBANK, INC.G.R. NO. 162

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

LEI 5)'(3 5()3$(% ')' PCIB &(% ) $#'"( #- A&"'#$>F#3("5#&3( S)5( #- '( 3#(3' &/?("'

#- '( +#3'4)4( $ &('#$. LEI -5(% ) C#+5)$' )4)$' PCIB -#3 A$$&5+($' #- M#3'4)4( ;' P3)(3-#3 T(+#3)3 R('3)$$4 O3%(3 P3(5+$)3 I$?&$"'#$ ;' D)+)4( ;' '( RTC #- L(4) C'.RTC &(% ) R(#5&'#$ %+$4 LEI C#+5)$'. LEI '($ -5(% ) M#'#$ -#3 R("#$%(3)'#$ #-)% R(#5&'#$. W5( );)'$4 3(#5&'#$ #- '( +#'#$ -#3 3("#$%(3)'#$ LEI )5# -5(% ) M#'#$ '#

A%+' A+($%(% C#+5)$', )%%$4 '( ')'(+($': that plaintiff Lolita A. Soriano likewise madedemands upon the Board of Directors of LEI to make leal steps to protect the interest of thecorporation from said fraudulent transaction! "ut unfortunatel#! until now! no such leal step was e$ertaken "# the Board! hence! this action for the "enefit and in "ehalf of the corporation.%T( '3)5 "#&3'&(% '( &('#$(% O3%(3 %($$4 /#' '( M#'#$ -#3 R("#$%(3)'#$ )$% '( M#'#$ '# A%+'

A+($%(% C#+5)$'.H($"( ' (''#$.

ISSUE

D#( '( )+($%(% "#+5)$' $#; &--"($'5 ')'( ) ")&( #- )"'#$J

HELDT( C#&3' (5% $ '( )--3+)'(, I' )5# ($&+(3)'(% '( 3(&'( -#3 -5$4 ) %(3)'( &', )

-#55#;: )! '( )3' /3$4$4 '( &' #&5% /( ) )3(#5%(3 ) #- '( '+( #- '( )"' #3 '3)$)"'#$"#+5)$(% #-, '( $&+/(3 #- )3( $#' /($4 +)'(3)5 /! ( ) '3(% '# (*)&' $'3)


5/193

MA. ONELLE S. FAUNECOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

DANTE LIBAN . RICHARD GORDON69 SCRA 709 2011!

FACTS

R(#$%($' R")3% . G#3%#$ -5(% ) M#'#$ -#3 C5)3-")'#$ )$%>#3 R("#$%(3)'#$ #- '(D("#$ 3#+&54)'(% / '( C#&3' #$ &5 1@, 2009, '( M#'#$ -#3 P)3')5 R("#$%(3)'#$ -5(% /+#)$'


6/193

ELYNUR H. GAMBETCOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

HARPOON MARINE SERVICES, INC. V. FRANCISCO SCRA 69 2011!

FACTS

FERNAN H. F3)$""# ;) 3(% ) Y)3% S&(3#3 / H)3##$, ) "#+)$ ($4)4(% $


7/193

EMILDAN M. GASTARDOCOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

MAORITY STOCKHOLDERS OF RUBY INDUSTRIAL CORP. VS LIM@0 SCRA 1 2011!

FACTS

R&/ I$%&'3)5 C#3#3)'#$ RUBY! ) %#+('" "#3#3)'#$ ($4)4(% $ 45) +)$&-)"'&3$4.R((5$4 -3#+ ((3( 5&%' 3#/5(+ /(4$$$4 $ 1980, RUBY -5(% #$ D("(+/(3 16, 1986 ) (''#$-#3 &($#$ #- )+($' ;' '( SEC ;" ;) 43)$'(%.

O$ A&4&' 10, 198, '( SEC H()3$4 P)$(5 "3()'(% '( +)$)4(+($' "#++''(( MANCOM!-#3 RUBY, "#+#(% #- 3(3(($')'( -3#+ R&/ "3(%'#3. O$( #- '( +)$ ') #- MANCOM '&%, 3((; )$% ()5&)'( '( 3##(% 3()/5')'#$ 5)$ -#3 RUBY.

S&/(&($'5, ';# 2! 3()/5')'#$ 5)$ ;(3( &/+''(% '# '( SEC '( BENHAR>RUBYR()/5')'#$ P5)$ #- '( +)?#3' '#"#5%(3 5(% / Y& K+ G)$4, )$% '( A5'(3$)'( P5)$ #- '(+$#3' '#"#5%(3 3(3(($'(% / M4&(5 L+ L+!. B&' '( +5(+($')'#$ #- /#' +)?#3' 5)$) /(($ ($?#$(% / '( SEC )$% CA. L)'(3, '( SC &(% ) -$)5 $?&$"'#$ #$ '( +5(+($')'#$.

S(' 18, 1991: N#';'')$%$4 '( $?&$"'#$ #3%(3, SEC &(% )$ O3%(3 )3#$4 '(R((% BENHAR>RUBY P5)$ )$% "3()'$4 ) $(; +)$)4(+($' "#++''(( '# #(3(( '

+5(+($')'#$. I' )5# %#5( '( MANCOM.T( R((% BENHAR>RUBY P5)$ )% 3##(% '( ")55$4 -#3 &/"3'#$ #- &$&(% )3('3#&4 ) B#)3% R(#5&'#$ -3#+ '( P11.81 +55#$ #- '(P26.7 +55#$ ACS $ #3%(3 '# )55#; '( 5#$4#(3%&( 3#43)+ #- '( REHAB P3#43)+.

O"' 2, 1991: T# +5(+($' '( R((% 5)$, RUBY /#)3% #- %3("'#3 (5% ) (")5 +(('$4)$% '## & '( ")')5 $-$ #- P11.81 M55#$ 3(3(($'$4 '( &$&(% )$% &$&/"3/(% #3'#$#- '( 3(($' ACS #- P26.7 M55#$.

ISSUEW('(3 #3 $#' '( )%%'#$)5 ")')5 $-$ )5%J

HELD

T( "#&3' 3&5(% $ '( $(4)'(. T( &)$"( #- )%%'#$)5 )3( ;) %#$( $ /3()" #- '3&'/ '( "#$'3#55$4 '#"#5%(3. H(3(, '( +)?#3' #&4' '# +#( '(3 ;55 )$%, '3#&4 -3)&%&5($'+()$, )''(+' '# #$ #-- R&/ )5&)/5( )(' '# '( 43()' 3(?&%"( #- R&/ '(5-, ) ;(55 ) '(+$#3' '#"#5%(3 )$% '( &$("&3(% "3(%'#3.

A '#" "#3#3)'#$ (*3(5 43)$'(% '( #;(3 '# &( #3 (55 '#". T( #;(3 '# &()3( #- '#" $ ) "#3#3)'#$ 5#%4(% $ '( /#)3% #- %3("'#3 )$% $# '#"#5%(3 +(('$4 3(&3(% '# "#$%(3 ' /(")&( )%%'#$)5 &)$"( #- )3( #- '#" %# $#' $((% )3#)5 #- '('#"#5%(3. W)' #$5 3(&3(% '( /#)3% 3(#5&'#$ )3#$4 '( )%%'#$)5 &)$"( #- )3(.T( "#3#3)'#$ )55 )5# -5( '( $("()3 )5")'#$ ;' '( SEC '# (*(+' '(( -3#+ '(3(4'3)'#$ 3(&3(+($' &$%(3 '( R((% S("&3'( A"' $#; '( S("&3'( R(4&5)'#$ C#%(!.

B&' CA -#&$%, ;" '( C#&3' )--3+(%, ')': '( -#3(4#$4 )+($' "(%&5( ) (+/#%(% $ '( )%R((% 5)$ ;" 4( B($)3 &$%&( )%)$')4( #(3 '( #'(3 "3(%'#3 4#( )4)$' '( (3(($"( #- 3()/5')'#$, ;" 3(&3( ')' $# "3(%'#3 #&5% /( 3(-(33(% #(3 '( #'(3. O$( #- '()5($' -()'&3( #- '( R((% B($)3>R&/ P5)$ '# C)55 #$ &$&(% )3( -#3P11.81 M )$% -+$#3' ;55 ')( & '(3 3(


8/193

CLAIRE AMEROCOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

BOY SCOUTS OF THE PHILIPPINES VS. COMMISSION ON AUDIT,GR. NO. 177161, &$( 07, 2011.

FACTS:COA &(% R(#5&'#$ N#. 99


9/193

RUBY LAIDCOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

HACIENDA LUISITA INC. HLI! V. PRESIDENTIAL AGRARIAN REFORM COUNCIL PARC!, ET AL.,G.R. NO. 171101, NOVEMBER 22, 2011

FACTSO$ &5 @, 2011, '( S&3(+( C#&3' ($ /)$" #'(% &$)$+#&5 11


10/193

T( C#&3' +)$')$(% ' ')$"( ')' '( #(3)'( -)"' %#"'3$( )5")/5( $ ' ")( $"(,"#$'3)3 '# '( &44('#$ #- '( +$#3', '( %#"'3$( $#' 5+'(% #$5 '# $)5% #3 &$"#$''&'#$)55); /&' )5# )5( '# %("#$ +)%( / '( P3(%($' #3 '( )%+$'3)'( )4($"( ')' )( '(-#3"( )$% (--("' #- 5);. P3#3 '# '( $&55-")'#$ #3 3(")55 #- )% %("#$, '( +) )( 3#%&"(%)"' )$% "#$(&($"( ')' +&' /( 3(("'(%. I' #$ ' "#3( ')' '( #(3)'( -)"' %#"'3$(#&5% /( )5(% '# )"' )$% "#$(&($"( ')' 3(&5'(% -3#+ '( +5(+($')'#$ #- '( PARC

R(#5&'#$ )3#$4 '( SDP #- HLI. T( +)?#3' '3((% ')' '( )5")'#$ #- '( #(3)'( -)"'%#"'3$( / '( C#&3' $ ' &5 @, 2011 %("#$ ;) $ -)"' -)#3)/5( '# '( FWB /(")&( $#' #$5;(3( '( )55#;(% '# 3(')$ '( /($(-' )$% #+(5#' '( 3("((% &$%(3 '( '#" %'3/&'#$"(+(, '( ;(3( )5# 4($ '( #'#$ '# "##( -#3 '(+(5( ;('(3 '( ;)$' '# 3(+)$ )'#"#5%(3 #- HLI #3 $#'.

2. NO, S(". 61 #- RA @7 NOT &$"#$''&'#$)5.

T( C#&3' +)$')$(% ')' '( C#&3' NOT "#+(55(% '# 3&5( #$ '( "#$''&'#$)5' #- S(". 61#- RA @7, 3('(3)'$4 ')' ' ;) $#' 3)(% )' '( ()35(' ##3'&$' )$% ')' '( 3(#5&'#$ '(3(#- $#' '( 5 +#') #- '( ")(. M#3(#(3, '( &( ) /(($ 3($%(3(% +##' )$% )")%(+" $"( SDO $# 5#$4(3 #$( #- '( +#%( #- )"&'#$ &$%(3 RA 9700. T( +)?#3' "5)3-(% ')' $ ' &5 @,

2011 %("#$, ' +)%( $# 3&5$4 $ -)#3 #- '( "#$''&'#$)5' #- S(". 61 #- RA @7, /&' -#&$%$#$('(5( ')' '(3( ;) $# ))3($' 43)( #5)'#$ #- '( C#$''&'#$ ')' +) ?&'- '(3(#5&'#$ #- '( &( #- "#$''&'#$)5'.

6. NO, '( C#&3' CANNOT #3%(3 ')' DAR "#+&5#3 )"&'#$ #- H)"($%) L&') "#(3'( -&55 ,6 ("')3( )$% $#' ?&' '( ,[email protected]@ ("')3( "#(3(% / HLI SDP.

S$"( ;)' &' $ &( /(-#3( '( C#&3' '( 3#3(' #- '( 3(#")'#$ #- '( SDP, ;"#$5 $#5( ,[email protected]@ ). #- )43"&5'&3)5 5)$% )$% $#' ,6 )., '($ '( C#&3' "#$'3)$(% '# 3&5(#$5 ) 3(4)3% '( ,[email protected]@ ). #- )43"&5'&3)5 5)$%.N#$('(5(, ' #&5% $#' 3(($' '( DAR,&$%(3 ' +)$%)'( &$%(3 '( )43)3)$ 3(-#3+ 5);, -3#+ &/(&($'5 &/?("'$4 '# )43)3)$ 3(-#3+ #'(3)43"&5'&3)5 5)$% #34$)55 (5% / T)%("# ')' ;(3( )55(4(%5 $#' '3)$-(33(% '# HLI /&' ;(3(

(%5 "#(3(% / RA @7.

H#;((3 $"( '( )3() '# /( );)3%(% '# ()" FWB $ '( &5 @, 2011 D("#$ )()3 '##3('3"'( "#$%(3$4 ')' '(3( )3( 3#)%, 334)'#$ ")$)5, )$% #'(3 #3'#$ #- '( 5)$% ')' )3("#$%(3(% "#++#$5


11/193

F#3 '( &3#( #- %('(3+$$4 ?&' "#+($)'#$, '( %)'( #- ')$4 N#(+/(3 21, 1989'( %)'( ;($ PARC )3#(% HLI SDP! $"( ' '( '+( ')' '( FWB ;(3( "#$%(3(% '##;$ )$% #( '( )43"&5'&3)5 5)$% $ H)"($%) L&'). T# /( 3("(, '(( 5)$% /(")+( &/?("'#- '( )43)3)$ 3(-#3+ "#(3)4( '3#&4 '( '#" %'3/&'#$ "(+( #$5 $ '( )3#)5 #- '(SDP, ')' , #$ N#(+/(3 21, 1989. S&" )3#)5 )$ '# ) $#'"( #- "#(3)4( #3%$)35 &(%&$%(3 "#+&5#3 )"&'#$. O$ '( "#$'($'#$ #- '( +$#3' &'"( S(3($#! ')' '( %)'( #- '($#'"( #- "#(3)4( )-'(3 PARC 3(#")'#$ #- '( SDP, ')' , )$&)3 2, 200, %('(3+$)'( #-

'( ?&' "#+($)'#$ ')' HLI ($''5(% '# 3("((, '( C#&3' +)?#3' $#'(% ')' $#$( #- '( ")("'(% '# ?&'- ' #'#$ $#5(% '( '#" %'3/&'#$ "(+(. T&, )% ")( %# $#' &)3(5)5 '# '( $')$' ")(. T( -#3(4#$4 $#';'')$%$4, ' /()3 '3($4 ')' '( DAR 5)$%)5&)'#$ #$5 3(5+$)3 )$% $#', / )$ +()$, -$)5 )$% "#$"5&( $ '( 5)$%#;$(3. T(5)$%#;$(3 ")$ -5( )$ #34$)5 )"'#$ ;' '( RTC )"'$4 ) ) (")5 )43)3)$ "#&3' '# %('(3+$( ?&'"#+($)'#$. T( "#&3' ) '( 34' '# 3((; ;' -$)5' '( %('(3+$)'#$ $ '( (*(3"( #- ;)' )%+''(%5 ) ?&%")5 -&$"'#$.

@. NO, '( 10


12/193

DANIEL P. LONGAUITCOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES.

DEE PING WEE VS. LEE HIONG WEE29 SCRA 1@ 2010!

FACTS:P(''#$(3 D(( P$4 W((, A3)"(5 W(( )$% M)3$) U. T)$ ;(3( '( +)?#3' '#"#5%(3 #-:

1! M)3"(5 T3)%$4 C#3#3)'#$, 2! M)3$( R(#&3"( D((5#+($' C#3#3)'#$, )$% 6! F3' M)3"(5P3#(3'(, I$"., )55 %#+('" "#3#3)'#$. O$ '( #'(3 )$%, 3(#$%($' L(( H#$4 W(( )$%R#)5$%) W(( ;(3( +$#3' '#"#5%(3 $ '( )% "#3#3)'#$.

R(#$%($', '3#&4 '(3 "#&$(5, ($' ) 5(''(3 '# (''#$(3 D(( P$4 W((, %(+)$%$4 '($("'#$ #- '( "#3#3)'( 3("#3% #- '( )/#( "#3#3)'#$. P(''#$(3 3(5(% ')' ( ;55 #$5 )55#;'( $("'#$ - 3(#$%($' ;55 "#+5 ;' "(3')$ "#$%'#$. B(")&( #- '( 3(-&)5, 3(#$%($'-5(% )$ )"'#$ )4)$' '( "#3#3)'#$ -#3 #5)'$4 '(3 34' '# 4)$ )""( '# )$% $("' '("#3#3)'( /##, 3("#3% )$% -$)$")5 ')'(+($' #- '( )/#( "#3#3)'#$, ;" 34' )3(

4&)3)$'((% / S("'#$ 7 )$% 7@ #- '( C#3#3)'#$ C#%(.

P(''#$(3 )34&(% ')' '(3 3(-&)5 '# )55#; 3(#$%($' '# $("' '( "#3#3)'( 3("#3% ?&'-(% /(")&( '( &3#( #- 3(#$%($' $ %(+)$%$4 $("'#$ #- '( "#3#3)'( 3("#3% ;),)55(4(%5, '# - -#3 (%($"( ')' '( "#&5% &( )4)$' (''#$(3 '# 3(4)$ +)$)4(+($' "#$'3#5 #-'( )-#3(+($'#$(% "#3#3)'#$ #3 '# -$% '("$")5 %(-("' $ '( "#3#3)'( '3)$)"'#$.

T( (*(3"( #- '(( 34' +) /( %($(%, #;((3, - ' #;$ ')' '( '#"#5%(3 )(+3#(35 &(% )$ $-#3+)'#$ ("&3(% '3#&4 ) 3(#& (*)+$)'#$ #3 ')' '( %(+)$% &3(5("&5)'( #3 +(3(5 '# )'- "&3#'. P(''#$(3 "5)+ ')' '( )/($"( #- )$ #;$4 #- 3#(3+#'( #$ '( )3' #- '( 3(#$%($' $ (($4 )$ $("'#$ #- '( /## )5% 43#&$% -#3 3(-&)5.

ISSUE:W('(3 #3 $#' '( 3(-&)5 #- (''#$(3 '# )55#; 3(#$%($' '# (*(3"( '(3 34' '# $("''( "#3#3)'( /## ;) )5%.

HELD:T( 3(-&)5 ;) $)5%. T( /&3%($ #- 3##- 5( ;' '( "#3#3)'#$ ;# 3(-&( '# 43)$' '# '(

'#"#5%(3 '( 34' '# $("' "#3#3)'( 3("#3%. T( (''#$(3, /($4 '( "#3#3)'( #--"(3, )('( /&3%($ #- 3#$4 ')' '( $("'#$ #&4' 55


13/193

CERIL OHNSON A. MILANACOMMERCIAL LAW REVIEW: THE CORPORATION CODE OF THE PHILIPPINES

BANK OF THE PHILIPPINE ISLANDS VS. BPI EMPLOYEES UNION


14/193

2. T( ()3)'( (*'($"( #- '( "#$''&($' "#3#3)'#$ )55 "()(, (*"('')' #- '( &3$4 #3 '( "#$#5%)'(% "#3#3)'#$

6. T( &3$4 #3 '( "#$#5%)'(% "#3#3)'#$ )55 #( )55 '( 34',35(4(, ++&$'( )$% #;(3 )$% )55 /( &/?("' '# )55 '( %&'( )$% 5)/5'( #- )"#3#3)'#$ #34)$(% &$%(3 ' C#%(

. T( &3$4 #3 '( "#$#5%)'(% "#3#3)'#$ )55 '(3($ )$% '(3()-'(3#( )55 '( 34', 35(4(, ++&$'( )$% -3)$"( #- ()" #- '( "#$''&($'"#3#3)'#$ )$% )55 3#(3', 3()5 #3 (3#$)5, )$% )55 3("()/5( %&( #$ ;)'((3)""#&$', $"5&%$4 &/"3'#$ '# )3( )$% #'(3 "#( $ )"'#$, )$% )55 )$% ((3#'(3 $'(3(' #-, #3 /(5#$4$4 '#, #3 %&( '# ()" "#$''&($' "#3#3)'#$, )55 /( ')($)$% %((+(% '# /( '3)$-(33(% '# )$% ('(% $ &" &3$4 #3 "#$#5%)'(%"#3#3)'#$ ;'#&' -&3'(3 )"' #3 %((% )$%

@. T( &3$4 #3 '( "#$#5%)'(% "#3#3)'#$ )55 /( 3(#$/5( )$% 5)/5(-#3 )55 '( 5)/5'( )$% #/54)'#$ #- ()" #- '( "#$''&($' "#3#3)'#$ $ '( )+(+)$$(3 ) - &" &3$4 #3 "#$#5%)'(% "#3#3)'#$ )% '(5- $"&33(% &" 5)/5'(#3 #/54)'#$ )$% )$ "5)+, )"'#$ #3 3#"((%$4 ($%$4 / #3 )4)$' )$ #- &"

"#$''&($' "#3#3)'#$ +) /( 3#("&'(% / #3 )4)$' '( &3$4 #3 "#$#5%)'(%"#3#3)'#$, ) '( ")( +) /(. N('(3 '( 34' #- "3(%'#3 $#3 )$ 5($ $ '(3#(3' #- )$ #- &" "#$''&($' "#3#3)'#$ )55 /( +)3(% / &" +(34(3 #3"#$#5%)'(%.

S4$-")$'5, '##, '( A3'"5( #- M(34(3 )$% P5)$ #- M(34(3 %)'(% A35 7, 2000 %% $#' "#$')$)$ ("-" '&5)'#$ ;' 3(("' '# '( (+5#+($' "#$'3)"' #- (*'$4 (3#$$(5 #- '( $#$R()/5')'#$ R("((3.T( SEC '($ &(% ) S&($#$ O3%(3 ($?#$$4 '( L(( "#3#3)'#$ -3#+ %#$4 #- '(33#(3' $ )$ +)$$(3 (*"(' $ '( #3%$)3 "#&3( #- /&$(, )$% -3#+ +)$4 )$ )+($'#&'%( '( 5(4'+)'( (*($( #- '(3 /&$( %&3$4 '( ($%($" #- '( (''#$.

ISSUE:

W('(3 '( 3#(3'( #;$(% / '( L(( #&5% /( "#(3(% / ) &($#$ #3%(3 &(% / '(SEC $ )$ )"'#$ -#3 &($#$ #- )+($'

HELD:N#, '( 3#(3'( )3( $#' "#(3(% &$%(3 '( &($#$ #3%(3 #- SEC. I$ ")( #- (''#$ -#3 '(&($#$ #- )+($', '( SEC ) ?&3%"'#$ #(3 "#3#3)'#$, )3'$(3 )$% )#")'#$,;" )3( 43)$'(( #- 3+)3 -3)$"( #3 5"($( #3 (3+' &(% / '( 4#(3$+($' '# #(3)'( $ '(P5$(, )$% '(3 3#(3'(. I' $%&/')/5 "5()3 ')' #$5 "#3#3)'#$, )3'$(3 )$%)#")'#$NOT 3)'( $%%&)5")$ -5( ;' '( SEC, (''#$ -#3 %("5)3)'#$ $ ) ')'( #-&($#$ #- )+($'. T&, ' 5#4")55 -#55#; ')' '( SEC %#( $#' )( ?&3%"'#$ '# ($'(3')$(''#$ -#3 &($#$ #- )+($' -5(% / )3'( #'(3 '#( +($'#$(%.


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GLEN PETILLACOMMERCIAL LAW REVIEW: SECURITIES REGULATION CODE

EFFERSON LIM . UEENSLAND TOKYO COMMODITIES, INC.

G.R. N#. 16061. )$&)3 , 2002

FACTS&(($5)$% T## C#++#%'( ) 5"($(% /3#(3 ($4)4(% $ '3)%$4 #- "#++#%'(

-&'&3(. B($?)+$ S), ) +)3(' )$)5' )$% '3)%(3 #- &(($5)$%, &44('(% '# P(''#$(3 '# $(' $'( F#3(4$ E*")$4( M)3('. C#$$"(% #- ' -()/5' )$% '# )""#++#%)'( (''#$(3 3(&(' '#'3)%( 34' );), 3(#$%($' )%)$"(% P12@,000 -3#+ ' #;$ -&$% ;5( ;)'$4 -#3 (''#$(3+)$)4(3 "(" '# "5()3. P(''#$(3 '($ 4$(% '( C&'#+(3 A43((+($', '( (3'$($' 3##$3()% ) -#55#;:

&7. 2pon sinin of this Areement! I shall deposit an initial marin either "# personal check!manaer8s check or cash. In the case of the first! I shall not "e permitted to trade until the checkhas "een cleared "# m# "ank and credited to #our account. In respect of marin calls or

additional deposits re-uired! I shall likewise pa# them either "# personal check! manaer8scheck or cash. In the e$ent m# personal check is dishonored! the compan# has the rihtwithout call or notice to settle9close m# tradin account aainst which the deposit was made. Insuch e$ent! an# loss of whate$er nature shall "e "orne "# me and I shall settle such loss upondemand toether with interest and reasona"le cost of collection. :owe$er! in the e$ent suchli-uidation i$es rise to a profit then such amount shall "e credited to the Compan#. /he a"o$enotwithstandin! I am not relie$ed of an# leal responsi"ilit# as a result of m# check "eindishonored "# m# "ank.%O$ O"'#/(3 22, 1992, L+ +)%( ) 3#-'.9D&3$4 '( ("#$% %) #- '3)%$4 '( 5#' P,@.

S$"( ' ;#&5% ')( (($'(($ 17! %) '# "5()3 '( +)$)4(3 "(" 4($ / (''#$(3, S) 3('&3$(%'( "(" '# (''#$(3 ;# $-#3+(% ')' ( (''#$(3! ;#&5% 3(5)"( '( +)$)4(3 "(" ;' )'3)(5(3 "(". A-'(3 &3")$4 '( '3)(5(3 "(", S) $#'"(% ')' ' ;) $#' $%#3(%. L)'(3, '(

'3)(5(3 "(" ;) %(#'(% ;' C'/)$.

1

C'/)$ $-#3+(% 3(#$%($' ')' '( '3)(5(3 "(" "#&5% $#' /( "5()3(% &$5( ' ;) %&54$(% / L+ ;" ( 4$(% #$5 #$( #3'#$ #- '( '3)(5(3 "(". S$"( '( '3)(55(3 "(""#&5% $#' /( ($")(%, 3(#$%($' )(% (''#$(3 '# (''5( )""#&$'. F#3 -)5$4 '# %# #, )"#+5)$' -#3 "#55("'#$ #- ) &+ #- +#$( ;) -5(%. T ;) %+(% / '( '3)5 "#&3'. O$ )()5,'( )+( ;) 3((3(% / '( C#&3' #- A()5 )$% #3%(3(% (--(3#$ L+ '# ) )(55)$' '( &+ #-P12@,000.00, ;' $'(3('.

ISSUEW('(3 #3 $#' '( )(55)'( "#&3' (33(% $ #5%$4 ')' (''#$(3 ('#(% -3#+ &('#$$4

'( )5%' #- '( C&'#+(3 A43((+($' ')' (''#$(3 4$(%.

RULINGT( (($')5 (5(+($' #- ('#(5 )3(: 1! "#$%&"' #- ) )3' )+#&$'$4 '# -)5( 3(3(($')'#$

#3 "#$"()5+($' #- +)'(3)5 -)"' #3 )' 5()' ")5"&5)'(% '# "#$( '( +3(#$ ')' '( -)"' )3(#'(3;( ')$, )$% $"#$'($' ;', '#( ;" '( )3' &/(&($'5 )''(+' '# )(3' 2! $'($',#3 )' 5()' (*("')'#$, ')' ' "#$%&"' )55 /( )"'(% $ /, #3 )' 5()' $-5&($"(, '( #'(3 )3')$% 6! $#;5(%4(, )"'&)5 #3 "#$'3&"'(, #- '( 3()5 -)"'.26

I' &$"#$'('(% ')' (''#$(3 4$(% '( C&'#+(3 A43((+($' $#;$4 -&55 ;(55 '( $)'&3(#- '( "#$'3)"' ( ;) ($'(3$4 $'#. T( C&'#+(3 A43((+($' ;) %&5 $#')3(% )$% ) ) &/5"%#"&+($' ' (%($"( #- '( -)"', ;" 4)( 3( '# ' (*("&'#$ )$% #- '( %)'( #- '( 5)''(3. 2@N(*',(''#$(3 )% $('+($' %(#' '# 3(#$%($' $ '( -#3+ #- ) +)$)4(3 "(". A55 '(( )3(indicia')' (''#$(3 '3()'(% '( C&'#+(3 A43((+($' ) ) )5% )$% /$%$4 "#$'3)"'.
http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn9http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn14http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn23http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn25http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn25http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn9http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn14http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn23http://sc.judiciary.gov.ph/jurisprudence/2002/jan2002/136031.htm#_edn25


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P(''#$(3 3()#$ '# /)" #&' #- '( )43((+($' ')' ( /(4)$ &')$$4 5#( -3#+ '('3)%(. C#&3' )( $# #;(3 '# 3(5(( )3'( -3#+ #/54)'#$ #5&$')35 )&+(%, +5 /(")&('(3 "#$'3)"' '&3$(% #&' '# /( %)'3#& #3 &$;( $('+($'.66WILLIAM OSEPH . RADAACOMMERCIAL LAW REVIEW: SECURITIES REGULATION CODE

GSIS . CA

@8@ SCRA 79 A35 1, 2009!

FACTS:T( )$$&)5 '#"#5%(3 +(('$4 #- '( M)$5) E5("'3" C#+)$ M(3)5"#! ;) "(%&5(% #$

M) 27, 2008. I$ "#$$("'#$ ;' '( )$$&)5 +(('$4, 3#*( ;(3( 3(&3(% '# /( &/+''(% #$ #3/(-#3( M) 17 2008, )$% '( 3#* )5%)'#$ ;) 5)'(% -#3 -( %) 5)'(3. I$ (; #- '( 3(4$)'#$ #-C)+5# &)#$, '( #'#$ #- "#3#3)'( ("3(')3 #- M(3)5"# /(")+( )")$'. T( /#)3% #- %3("'#3#- M(3)5"# %(4$)'(% #( V'&4 '# )"' ) "#3#3)'( ("3(')3 -#3 '( )$$&)5 +(('$4. H#;((3, ;($'( 3#* )5%)'#$ /(4)$, '( 3#"((%$4 ;(3( 3(%(% #(3 / 3(#$%($' R#('(, )')$'"#3#3)'( ("3(')3 )$% $


47/193

BELLE F. SALIGUMBACOMMERCIAL LAW REVIEW: SECURITIES REGULATION CODE

ABRERA VS. BARA, @99 SCRA @6 2009!

FACTS:CAP ;) $"#3#3)'(% #$ F(/3&)3 1, 1980 -#3 '( &3#( #- ($4)4$4 $ '( )5( #- 3(#3 M)$)4(+($'C#++''(( )4)$' CAP, ' D3("'#3 )$% O--"(3, )$% '( F5#3 A$$&5+($' #- C#$'3)"' %&( '# F3)&%, R('&3$ )$% D4#34(+($' #-I55(4)5 P3#-' )$% D)+)4(. T( )55(4(% ')' '( 3#"((%$4 ;(3( &++)3 )$% $#$


48/193

. R(&/5" A"' R.A.! N#. 8799, #'(3;( $#;$ ) /he Securities 0eulation Code, %(-$(3(


49/193

CERIL OHNSON A. MILANACOMMERCIAL LAW REVIEW: SECURITIES REGULATION CODE

SEC VS. PROSPERITY.COM, INC.

)$. 2@, 2012!

FACTS:P3#(3'.C#+, I$". PCI! #5% "#+&'(3 #-';)3( )$% #'(% ;(/'( ;'#&' 3#%$4

$'(3$(' (3"(. T# +)( ) 3#-', PCI %((% ) "(+( $ ;", -#3 '( 3"( #- USX26.00&/(&($'5 $"3()(% '# USX29!, ) /&(3 "#&5% )"&3( -3#+ ' )$ $'(3$(' ;(/'( #- ) 1@


50/193

T( "#++#$, $'(3(' $ 3()5 (')'(, )$% $&3)$"( "#(3)4( ;#3' P@0,000.00 )3($"($'( '# %#;$#3 (*")$4( #- )%&/%#$ )$% 3#(3'( '3#&4 $(';#3 +)3('$4.

O$ O"'. 27, 2000, 3)'( 3(#$%($' N#(5 M)$(3# 3(&('(% &/5" 3(#$%($' SEC '#$('4)'( (''#$(3 /&$(. H( "5)+(% ')' ( )''($%(% ) (+$)3 "#$%&"'(% / (''#$(3 ;(3(

'( 5)''(3 "5)+(% '# (55 3#(3'( ')' ;(3( $(*'($' )$% ;'#&' )$ /3#(3 5"($(.

O$ '( /)( #- '( 5(''(3 #- 3(#$%($' M)$(3# )$% M&$))", SEC (5% ) "#$-(3($"( #$D(". 16, 2000 )''($%(% / (''#$(3 $"#3#3)'#3. A''($%(( ;(3( 3(&('(% '# &/+' "#( #-(''#$(3 +)3('$4 "(+(. SEC )5# '(% '( /&$( 3(+( #- (''#$(3 ;(3($ ' 4)'(3(%%#"&+($' &" ) "(3'-")'( #- )""3(%')'#$ '# ((3)5 3()5 (')'( "#+)$(.

A-'(3 -$%$4 (''#$(3 '# /( ($4)4(% $ '( )5( #3 #--(3 -#3 )5( #3 %'3/&'#$ #- $('+($'"#$'3)"', ;" )3( "#$%(3(% ("&3'( &$%(3 S(". 6.1 /! #- R.A. 8799 #3 SRC, /&' -)5(% '# 3(4'(3'(+ $ #5)'#$ #- S(". 8.1 #- '( )+( A"', &/5" 3(#$%($' SEC &(% ) C()( )$% D(' O3%(3)4)$' (''#$(3.

ISSUE:W('(3 #3 $#' '( /&$( #- (''#$(3 $#5( )$ $('+($' "#$'3)"' ')' "#$%(3(% )("&3', ;" #&5% /( 3(4'(3(% ;' '( SEC /(-#3( ' )5( #3 #--(3 -#3 )5( #3 %'3/&'#$ '# '(&/5".

HELD:T( /&$( #- (''#$(3 $#5( )$ $('+($' "#$'3)"'. A$ $('+($' "#$'3)"' %(-$(% $

'( A+($%(% IRR #- R.A. N#. 8799 ) ) "#$'3)"', '3)$)"'#$ #3 "(+( ;(3(/ ) (3#$ $(' +#$( $ ) "#++#$ ($'(33( )$% 5(% '# (*("' 3#-' 3+)35 -3#+ '( (--#3' #- #'(3. T# /( )("&3' &/?("' '# 3(4&5)'#$ / '( SEC, )$ $('+($' "#$'3)"' $ #&3 ?&3%"'#$ +&' /( 3#(% '#/(: 1! )$ $('+($' #- +#$(, 2! $ ) "#++#$ ($'(33(, 6! ;' (*("')'#$ #- 3#-', !3+)35 -3#+ (--#3' #- #'(3.

T( "(+( #- '( "#3#3)'#$ 3(&3( )$ $('#3 '# /("#+( ) B&$( C($'(3 O;$(3BCO!. T( T(3+ )$% C#$%'#$ 3$'(% )' '( /)" #- '( )5")'#$ -#3+ $%")'( ')' '( BCO)55 +()$ )$ $%(($%($' 3(3(($')'( #- P#;(3 H#+(, ;# ($3#55(% $ '( "#+)$ 3(-(33)53#43)+ )$% ;# ;55 &5'+)'(5 &3")( 3()5 3#(3' -3#+ )$ )""3(%'(% 3()5 (')'( %((5#(3 )$%) &" ( ($''5(% '# ) 3(-(33)5 /#$&>"#++#$. A$ $('#3 ($3#55 $ (''#$(3 3#43)+ /)$4 USX26. T ($''5( + '# 3("3&' ';# 2! $('#3 ;# ) USX26 ()" )$% #&' #- ;")+#&$' ( 3("(( USX92. S&" /&$( )33)$4(+($' ) $% #- $('+($' "#$'3)"'.


51/193

MARY CHRISTINE ANTHONETTE M. SALISECOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

GONALE . PCIB, SCRA 180 2011!

FACTS:P(''#$(3 E&(/# G#$)5( ;) 43)$'(% / PCIB ) "3(%' 5$( '# G#$)5( '3#&4 '(

(*("&'#$ #- ) C3(%'


52/193

"#++#$ ")33(3 ;#( /&$( +/&(% ;' &/5" $'(3(', ) /)$ #&5% (*(3"((*'3)#3%$)3 %54($"( '# $(4)'( ' 5)/5' '# '( %(#'#3.6@I$ ' $')$"(, PCIB #3(53(+ $ '( %54($"( 3(&3(% $ '3()'$4 ;' ' "5($', G#$)5(. I' +) $#' ;)$'#$5 (*(3"(' 34' ;'#&' 3(("'$4 )$% #$#3$4 '( 34' #- ' "5($'.

BETTY L. CAMPOS

COMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

SECURITY BANK VS. RCBCG.R. N#. 17098 )$&)3 10, 2009!

FACTS:S("&3' B)$ )$% T3&' C#+)$ SBTC! &(% ) +)$)4(3 "(" -#3 P8 +55#$, ))/5( '#

=CASH,= ) 3#"((% #- '( 5#)$ 43)$'(% '# G&%#$ C#$'3&"'#$ )$% D((5#+($' C#3#3)'#$GCDC!. O$ '( )+( %), '( P8


53/193

+)$)4(3 "(", #$5 (*(3"(% ) 3(3#4)'( (*3(5 43)$'(% '# ' / '( M#$(')3 B#)3%.M#3(#(3, $('(3 M#$(')3 B#)3% R(#5&'#$ N#. 2202 $#3 '( &5 9, 1980 M(+#3)$%&+ )5'(3 '((*'3)#3%$)3 $)'&3( #- '( +)$)4(3 "(" )$% '( 3(5)'( 34' #- '( )3'( '(3('#. SBTC5)/5' ) %3);(3 3(+)$ '( )+( / %3);$4 '( $'3&+($', ' )%+' '( (*'($"( #- '( )(()$% '($ "))"' '# $%#3( )$% ($4)4( ')' #$ %&( 3(($'+($', '( $'3&+($' ;55 /()""('(%, #3 )%, #3 /#', )""#3%$4 '# ' '($#3.TRYLL G. CHIU

COMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

BANK OF AMERICA VS. ASSOCIATED CITIENS BANK@88 SCRA @1 2009!

FACTS: BA#3 5)" #-($%#3(+($' 4&)3)$'((%, )$% ($' '(+ '3#&4 "5()3$4. L)'(3, '( %3);(( /)$, B)$ #- A+(3"),#$#&3(% '( "(" )$% )% '( 3#"((% '# A#")'(% B)$ ) '( "#55("'$4 /)$. M55(3 -)5(% '# %(5(3 '# BA#3 U C&$4 G&)$ S($4 5)/5( '# ) A#")'(% B)$ '( )+#&$' #-'( -#&3 "(".

HELD:1! T( C#&3' #- A()5 %% $#' (33 $ -$%$4 B)$ #- A+(3") 5)/5( '# ) BA


54/193

"). T&, '( (--("' #- "3#$4 ) "(" 3(5)'( '# '( +#%( #- )+($', +()$$4 ')' '( %3);(3 )%$'($%(% '( "(" -#3 %(#' #$5 / '( 34'-&5 (3#$, i.e., '( )(( $)+(% '(3($. T( "3#$4+) /( (")5 ;(3($ /(';(($ '( ';# )3)55(5 5$( ;3''($ '( $)+( #- ) /)$ #3 ) /&$($''&'#$, $ ;" ")( '( %3);(( #&5% ) #$5 ;' '( $'(3($'#$ #- ')' /)$ #3 "#+)$, #34($(3)5 ;(3($ /(';(($ ';# )3)55(5 %)4#$)5 5$( )3( ;3''($ '( ;#3% )$% C#. #3 $#$( )' )55, $;" ")( '( %3);(( #&5% $#' ($#3 5)" #- ($%#3(+($' 4&)3)$'((%, ')' /)$ )% -#3 )55 $'($' )$% &3#('3()'(% '( "(" ) $(4#')/5( $'3&+($' )$%, )""#3%$45, )&+(% '( ;)33)$' #- )$($%#3(3. B($4 #, A#")'(% B)$ ")$$#' %($ 5)/5' #$ '( "(".

A#")'(% B)$ ;) )5# "5()35 $(454($' $ %3(4)3%$4 (')/5(% /)$$4 3&5( )$%3(4&5)'#$ / )55#;$4 '( -#&3 "(" '# /( 3(($'(% /, )$% %(#'(% $ '( (3#$)5 /)$ )""#&$'#-, ) (3#$ ;# ;) $#' '( )(( $)+(% $ '( "(". T( "(" ;(3( &(% '# '( O3%(3 #-M55(3 O--(' P3(, I$"., /&' ;(3( %(#'(%, )$% )% / A#")'(% B)$, '# '( (3#$)5 ?#$')""#&$' #- C$4 U S($4 )..). R#/(3' C$4! )$% U C&$4 G&)$ S($4. I' "#&5% $#' )( (")(%

A#")'(% B)$ )''($'#$ ')' '( )(( #- '( "(" ) "#3#3)'#$ ;5( '( (3#$ ;#%(#'(% '( "(" $ #;$ )""#&$' )$ $%%&)5. V(35, ;($ '( /)$ )55#;(% ' "5($' '#"#55("' #$ "3#(% "(" &(% $ '( $)+( #- )$#'(3, '( /)$ 4&5' #- $(454($"(. A""#3%$45,;( #5% ')' A#")'(% B)$ 5)/5( -#3 '( )+#&$' #- '( -#&3 "(" )$% #&5% 3(+/&3( '()+#&$' #- '( "(" '# B)$ #- A+(3").

6! T( C#&3' #- A()5 %% $#' (33 $ -$%$4 C$4 U S($4 )$%>#3 U C&$4 G&)$ S($45)/5( '# ) A#")'(% B)$ '( )+#&$' #- '( -#&3 "(".

I' ;(55


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' ) '# ) '# B)$ #- A+(3"), $ 5$( ;' '( 3&5( ')' $# (3#$ #&5% /( )55#;(% '# &$?&'5 ($3"+(5- )' '( (*($( #- )$#'(3.

ALBERT CONGCOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

METROBANK VS. CA

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

A3/'3)'#$ C#++''((, "#$'($%$4 $ '( +)$ ')' UOB )% '( %&' '# (*)+$( '( %(#'(% "("-#3 )$ +)'(3)5 )5'(3)'#$ /&' $"( UOB -)5(% '# (*(3"( %&( %54($"( $ %('(3+$$4 ')' '( "(")% /(($ )5'(3(%, UOB #&5% /()3 '( 5#. I$ ' A$;(3 ;' C#&$'(3"5)+, UOB $'(3#(% '(%(-($( ')' ' (*(3"(% %&( %54($"(, )$% ')' M('3#/)$ -)5(% '# "#+5 ;' '( 2


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A $ I$&5)3, '( '3)5 "#&3', $ ' ")(, 3#(35 %+(% C5 C)( N#. 00


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ELYNUR H. GAMBETCOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

PNB V. RODRIGUE@ SCRA @16 2008!

FACTSS#&( E35)$%# )$% N#3+) R#%34&( ;(3( "5($' #- P5$( N)'#$)5 B)$ PNB!,

C(/& C'. T( ;(3( ($4)4(% $ '( $-#3+)5 5($%$4 /&$( ;(3( '( )% )%"#&$'$4 )33)$4(+($' ;' '( P5$)/)$ E+5#(( S)$4 )$% L#)$ A#")'#$ PEMSLA!, )$

)#")'#$ #- PNB (+5#((. S#&( R#%34&( ;#&5% 3(%"#&$' '( #'


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(*"('#$ '# '( -"''#&


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EMILDAN GASTARDOCOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

DELA RAMA VS ADMIRAL UNITED SAVINGS BANK 6@1 SCRA 72 2008!

FACTSA%+3)5 U$'(% S)$4 B)$ (*'($%(% ) 5#)$ #- P@00,000.00 '# (''#$(3 H($3 D(5) R)+)

C#, ;' L(#")%# O. I ) "#


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CLAIRE AMEROCOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

VELASUE VS. SOLID BANK CORPORATION, @@0 SCRA 119

FACTS:P(''#$(3 ($4)4(% $ '( (*#3' /&$( #(3)'$4 &$%(3 '( $)+( W5%(3$( T3)%$4.

R(#$%($' ) %#+('" /)$$4 "#3#3)'#$ #34)$(% &$%(3 P5$( 5);. W5%(3$( T3)%$4, )(55(3, ($'(3(% $'# ) /&$( '3)$)"'#$ -#3 '( )5( #- %3(% () "&"&+/(3 -#3 (*#3' '# G#5%;(55T3)%$4 #- P&)$, S#&' K#3(), ) /&(3. T# -)"5')'( )+($', G#5% ;(55 T3)%$4 #($(% ) 5(''(3 #-

"3(%' $ -)#3 #- W5%(3$( T3)%$4 ;' '( B)$ #- S(#&5, P&)$, S#&' K#3(). P(''#$(3 '($)5(% -#3 "3(%' )""#++#%)'#$ ;' 3(#$%($' S#5%/)$ -#3 3(


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RUBY LAIDCOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

AMES SVENDSEN VS. REPUBLIC OF THE PHILIPPINES,G. R. NO. 17@681

FACTSI$ O"'#/(3 1997, C3'$) R(( C3'$)! (*'($%(% ) 5#)$ '# (''#$(3 $ '( )+#&$'

#- P200,000, '# /()3 $'(3(' )' 10Q ) +#$'. A-'(3 (''#$(3 )% )3')55 )% #/54)'#$, ( -)5(%'# (''5( '( /)5)$"( '(3(#- ;" )% 3()"(% P680,000 $"5&( #- $'(3('. C3'$) '& -5(% )

"#55("'#$ &' )4)$' (''#$(3. P(''#$(3 )% (3 P200,000 )$% &(% $ (3 -)#3 )$ I$'(3$)'#$)5E*")$4( B)$ "(" #'%)'(% F(/3&)3 2, 1999 '( "("! $ '( )+#&$' #- P10,000 3(3(($'$4$'(3('. T( "(" ;) "#


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#+(#$( 3("((% '( 5(''(3. A '# ;('(3 ' 4$)'&3( ')' #- #$( #- '( (''#$(3 #3 #- '(3)&'#3(% )4($' 3(+)$ ) +'(3. F3#+ '( 3(4'3 3("(' )5#$(, ' #/5( ')' (''#$(3 #3'(3 )&'#3(% )4($' %% 3("(( '( %(+)$% 5(''(3. P#/5'(, #;((3, ")$$#' 3(5)"( 3##-/(#$% 3()#$)/5( %#&/'.17

P(''#$(3 "55 5)/5(. H( , #;((3, #3%(3(% '# ) 3)'( "#+5)$)$', C3'$) C. R((,'( )+#&$' #- SITEEN THOUSAND PESOS P1,000! 3(3(($'$4 "5 $%(+$', 5& 12Q$'(3('per annum "#+&'(% -3#+ A35 29, 1999 & '# '( -$)5' #- ' ?&%4+($'. A-'(3 '( ?&%4+($'

/("#+( -$)5 )$% (*("&'#3 &$'5 '( #/54)'#$ )'-(%, '( '#')5 )+#&$' %&( )55 ()3$ $'(3(' )'12Qper annum.DANIEL P. LONGAUITCOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

ANG VS. ASSOCIATED BANK@62 SCRA 2 2007!

FACTS:R(#$%($' A#")'(% B)$ -5(% ) "#55("'#$ &' )4)$' A$'#$# A$4 E$4 L#$4 )$%

(''#$(3 T#+) A$4 -#3 '( 2 3#+#3 $#'( ')' '( (*("&'(% ) 3$")5 %(/'#3 )$% "#


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'(3 5)/5'( )3( $'(3;#($ ) '# /( $()3)/5(. A5'#&4 ) "#$'3)"' #- &3(' $ (($"()""(#3 #3 "#55)'(3)5 '# ) )5% 3$")5 #/54)'#$, '( &3(' 5)/5' '# '( "3(%'#3 immediate,

primar# )$%a"solute ( directl# )$% e-uall#/#&$% ;' '( 3$")5.

CERIL OHNSON A. MILANACOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

METRO BANK VS CABILO G.R. NO. 1@9DECEMBER , 200

FACTS:N#(+/(3 12,199: R($)'# D. C)/5# C)/5#! &(% ) M('3#/)$ C(" ))/5( '# =CASH=

)$% #'%)'(% #$ N#(+/(3 2, 199 $ '( )+#&$' #- P1,000 %3);$ )4)$' M('3#/)$ )""#&$''# M3. M)3&(, ) )5( "#++#$. T( "(" ;) 3(($'(% '# W('+#$' B)$ -#3 )+($';# $%#3(% ' '# M('3#/)$ -#3 )3#3)'( "5()3$4. A-'(3 '( ($'3( '(3(#$ ;(3( (*)+$(%,

$"5&%$4 '( ))5)/5' #- -&$% )$% '( )&'($'"' #- '( 4$)'&3( #- '( %3);(3, M('3#/)$ "5()3(%'( "(" -#3 ($")+($' $ )""#3%)$"( ;' '( P5$( C5()3$4 H#&( C#3#3)'#$ PCHC!R&5(. O$ N#(+/(3 1, 199: C)/5# 3(3(($')'( ;) )' M('3#/)$ ;($ ( ;) )(% / )/)$ (3#$$(5 - C)/5# )% &(% ) "(" $ '( )+#&$' #- P91K '# ;" ( 3(5(% $ $(4)'(. I$')' )-'(3$##$ C)/5# ")55(% M('3#/)$ '# 3('(3)'( ')' ( %% $#' &( '( "(". H( 5)'(3 %"#(3(%')' '( "(" #- P1K ;) )5'(3(% '# P91K )$% %)'( ;) ")$4(% -3#+ N# 2 '# N# 1. C)/5#%(+)$%(% ')' M('3#/)$ 3(


65/193

CHRISTINE MAE NAVARRACOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

GONALES . RIAL COMMERCIAL BANKING CORPORATION RCBC!, @08 SCRA @9 200!

FACTS:G#$)5( ;) )$ (+5#(( #- RCBC. A -#3(4$ "(" ;) %3);$ / #$( D3. ))$') )4)$'

'( %3);(( W53( C($'(3 B)$ )$% ))/5( '# G#$)5( +#'(3, %(-($%)$' E) A5)3. A5)3$%#3(% '( "(". S$"( RCBC 4( (")5 )""#++#%)'#$ '# ' (+5#(( '# 3("(( '( "(")5&( ;'#&' );)'$4 '( "5()3$4 (3#%, G#$)5( 3(($'(% '( -#3(4$ "(" )$% 3("((% ' (#

(&)5($'. RCBC '($ '3(% '# "#55("' '( )+#&$' #- '( "(" ;' '( %3);(( /)$ /&' ;) ?&'%#$#3(% %&( '# 33(4&5)3 $%#3(+($'. U$)/5( '# "#55("', RCBC %(+)$%(% -3#+ G#$)5( '()+($' #- '( "(" ')' ( 3("((%. G#$)5( (''5(% '( +)''(3 / )43(($4 ')' )+($' /(+)%( '3& )5)3 %(%&"'#$. H#;((3, ( 5)'(3 3(4$(%. RCBC -5(% ) "#+5)$' -#3 ) &+ #- +#$()4)$' (3 )$% (3 +#'(3.

ISSUE:W('(3 G#$)5( 5)/5( ) 4($(3)5 $%#3(3.

HELD:NO. S(" #- NIL 3#%( ')', ((3 $%#3(3 ;# $%#3( ;'#&' &)5-")'#$, ;)33)$' '#

)55 &/(&($' #5%(3 $ %&( "#&3( ')' '( $'3&+($' 4($&$( )$% $ )55 3(("' ;)' ' &3#3'

'# /( T)' ( ) ) 4##% ''5( '# ' )' )55 3#3 )3'( )% "))"' '# "#$'3)"' )$% ')' '( $'3&+($', )' '( '+( #- $%#3(+($', )5% )$% &/'$4. T 3##$, #;((3, ")$$#' /( &(% / '()3' ;" $'3#%&"(% ) %(-("' #$ '( $'3&+($', &" ) 3(#$%($' RCBC $ ' ")(, ;"&)5-(%5 ($%#3(% '( )+(, '# #5% 3#3 ($%#3(3 5)/5( #$ '( $'3&+($' /(")&( ' 3(&5' $ '()/&3% '&)'#$ ;(3(/ ) &/(&($' )3' +) 3($%(3 )$ $'3&+($' &(5( )$% $&'5( )$% 5('$$#"($' )3'( /()3 '( 5# ;5( ( +(5- 4(' );) "#'


66/193

GLEN PETILLACOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

THE INTERNATIONAL CORPORATE BANK, INC., (''#$(3, . COURT OF APPEALS )$%PHILIPPINE NATIONAL BANK, 3(#$%($'. G.R. N#. 129910 S('(+/(3 @, 200

FACTST( M$'3 #- E%&")'#$ )$% C&5'&3( &(% 1@ "(" @%3);$ )4)$' 3(#$%($' ;"

(''#$(3 )""('(% -#3 %(#' #$ )3#& %)'(. A-'(3 2 #&3 -3#+ &/+#$ #- '( "(" '#3(#$%($' -#3 "5()3$4, (''#$(3 )% '( )5&( #- '( "(" )$% )55#;(% '( ;'%3);)5 #- '(

%(#'. H#;((3, #$ 1 O"'#/(3 1981, 3(#$%($' 3('&3$(% )55 '( "(" '# (''#$(3 ;'#&'"5()3$4 '(+ #$ '( 43#&$% ')' '( (3)5 $&+/(3 ;(3( +)'(3)55 )5'(3(%. T&, (''#$(3 $''&'(%)$ )"'#$ -#3 "#55("'#$ #- &+ #- +#$( )4)$' 3(#$%($' '# 3("#(3 '( )5&( #- '( "(".

ISSUEW('(3 '( "(" ;(3( +)'(3)55 )5'(3(%

RULINGA5'(3)'#$ #- S(3)5 N&+/(3 N#' M)'(3)5. S("'#$ 12 )$% 12@ #- A"' N#. 2061, #'(3;(

$#;$ ) '( N(4#')/5( I$'3&+($' L);, 3#%(:SEC. 12.Alteration of instrument< effect of. Z W(3( ) $(4#')/5( $'3&+($' +)'(3)55)5'(3(% ;'#&' '( )($' #- )55 )3'( 5)/5( '(3(#$, ' )#%(%, (*"(' ) )4)$' ) )3'

;# ) +(5- +)%(, )&'#3(%, #3 )($'(% '# '( )5'(3)'#$ )$% &/(&($' $%#3(3.B&' ;($ )$ $'3&+($' ) /(($ +)'(3)55 )5'(3(% )$% $ '( )$% #- ) #5%(3 $ %&("#&3(, $#' ) )3' '# '( )5'(3)'#$, ( +) ($-#3"( )+($' '(3(#- )""#3%$4 '# ' #34$)5 '($#3.

SEC. 12@. +hat constitutes a material alteration. Z A$ )5'(3)'#$ ;" ")$4(:)! T( %)'(/! T( &+ ))/5(, ('(3 -#3 3$")5 #3 $'(3('"! T( '+( #3 5)"( #- )+($'%! T( $&+/(3 #3 '( 3(5)'#$ #- '( )3'((! T( +(%&+ #3 "&33($" $ ;" )+($' '# /( +)%(

A$ )5'(3)'#$ )% '# /( +)'(3)5 - ' )5'(3 '( (--("' #- '( $'3&+($'. I' +()$ )$&$)&'#3(% ")$4( $ )$ $'3&+($' ')' &3#3' '# +#%- $ )$ 3(("' '( #/54)'#$ #- ) )3' #3)$ &$)&'#3(% )%%'#$ #- ;#3% #3 $&+/(3 #3 #'(3 ")$4( '# )$ $"#+5('( $'3&+($' 3(5)'$4 '#'( #/54)'#$ #- ) )3'. I$ #'(3 ;#3%, ) +)'(3)5 )5'(3)'#$ #$( ;" ")$4( '( '(+ ;" )3(3(&3(% '# /( ')'(% &$%(3 S("'#$ 1 #- '( N(4#')/5( I$'3&+($' L);.

W)' ;) )5'(3(% '( (3)5 $&+/(3 #- '( "(" $ &('#$, )$ '(+ $#' )$ (($')53(&'( -#3 $(4#')/5' &$%(3 S("'#$ 1 #- '( N(4#')/5( I$'3&+($' L);. T( )-#3(+($'#$(%)5'(3)'#$ %% $#' ")$4( '( 3(5)'#$ /(';(($ '( )3'(. T( $)+( #- '( %3);(3 )$% '( %3);((;(3( $#' )5'(3(%. T( $'($%(% )(( )$% '( &+ #- +#$( ;(3( '( )+(.

WHEREFORE, ;( 3&5( ')' 3(#$%($' P5$( N)'#$)5 B)$ 5)/5( '# (''#$(3I$'(3$)'#$)5 C#3#3)'( B)$, I$". -#3 '( )5&( #- '( "(". C#' )4)$' 3(#$%($'.
http://www.lawphil.net/judjuris/juri2006/sep2006/gr_129910_2006.html#fnt5http://www.lawphil.net/judjuris/juri2006/sep2006/gr_129910_2006.html#fnt5


67/193

WILLIAM OSEPH . RADAACOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

DICO VS. COURT OF APPEALS@2 SCRA 1 FEB. 28, 200@!

FACTS:A""&(% )+( D"#, $#; (''#$(3, ;) ")34(% ;' '3(( "#&$' #- #5)'#$ #- B)')

P)+/)$) B5)$4 22 B.P. B54. 22! /(-#3( '( MTCC #- C(/&. A 3(4)3% '( "(" %)'(% &$( 12,1996 ;" ;) %(#'(% #$ &$( 1, 1996, (''#$(3 +)$')$ ')' '( $#'"( #- %#$#3 4($ -#3

)% "(" ;) $#' '( #$( 3(&3(% / 5); $"( )% $#'"( ;) 4($ /(-#3( '( "(" /(")+( %&()$% /(-#3( ' ;) %(#'(%. T( 3("#3% #- '( ")( #; '( #$5 5(''(3 3("((% / (''#$(3$#5$4 '( '3(( "(" &/?("' #- '(( ")( ;) '( #$( %)'(% &$( 8, 1996. T 5(''(3 ($' /'( "#&$(5 #- 3)'( "#+5)$)$' )(% (''#$(3 '# +)( 4##% '( "(" ;'$ -( @! %) -3#+3("(' '(3(#-, #'(3;(, "3+$)5 ")34( -#3 #5)'#$ #- B.P. B54. 22 ;55 /( -5(% )4)$' +.

ISSUE:W('(3 #3 $#' '( $#'"( #- %#$#3 #- '( "(" ;) 3#(35 +)%( '# D"# ) ) 3(&'( -#3

#5)'#$ #- BP 22.

HELD:T( $#'"( #- %#$#3 #- '( "(" ;) $#' 3#(35 +)%(. T# #5% ) (3#$ 5)/5( &$%(3 B.P.

B54. 22, '( 3#("&'#$ +&' $#' #$5 (')/5 ')' ) "(" ;) &(% )$% ')' '( )+( ;)&/(&($'5 %#$#3(%, ' +&' -&3'(3 /( #;$ ')' )""&(% $(; )' '( '+( #- '( &)$"( #- '("(" ')' ( %% $#' )( &--"($' -&$% #3 "3(%' ;' '( %3);(( /)$ -#3 '( )+($' #- &""(" $ -&55 $ ' 3(($'+($'.

T $#;5(%4( #- $&--"($" #- -&$% )' '( '+( #- '( &)$"( #- '( "(" '( ("#$%(5(+($' #- '( #--($(. I$)+&" ) ' (5(+($' $#5( ) ')'( #- +$% #- '( (3#$ +)$4,%3);$4 #3 &$4 '( "(" ;" %--"&5' '# 3#(, S("'#$ 2 #- B.P. B54. 22 "3()'( ) prima facie3(&+'#$ #- &" $#;5(%4(. T( 3(&+'#$ /3#&4' $'# (*'($"( #$5 )-'(3 ' 3#(% ')''( &(3 )% 3("((% ) $#'"( #- %#$#3 )$% ')' ;'$ -( %) -3#+ 3("(' '(3(#-, ( -)5(% '#) '( )+#&$' #- '( "(" #3 '# +)( )33)$4(+($' -#3 ' )+($' S(". 2, BP 22!.

A $#'"( #- %#$#3 3("((% / '( +)(3 #3 %3);(3 #- '( "(" '& $%($)/5( /(-#3() "#$"'#$ ")$ ($&(. T( $#'"( #- %#$#3 +) /( ($' / '( #--($%(% )3' #3 '( %3);(( /)$.T( $#'"( +&' /( $ ;3'$4. A +(3( #3)5 $#'"( '# ) ) %#$#3(% "(" ;55 $#' &--"(. T( 5)" #-) ;3''($ $#'"( -)')5 -#3 '( 3#("&'#$.

P(''#$(3 %% $#' 3("(( '( $#'"( #- %#$#3 "#$'(+5)'(% / '( 5);. T(3( ;) $# )5%$#'"( #- %#$#3 '# () #-. T( '(3+ $#'"( #- %#$#3 %($#'( ')' ) "(" ) /(($ 3(($'(%-#3 )+($' )$% ;) &/(&($'5 %#$#3(% / '( %3);(( /)$. T +()$ ')' '( "(" +&'$("()35 /( %&( )$% %(+)$%)/5( /(")&( #$5 ) "(" ')' ) /("#+( %&( ")$ /( 3(($'(% -#3)+($' )$% &/(&($'5 /( %#$#3(%. A #'%)'(% "(" ")$$#' /( %#$#3(% - 3(($'(% -#3)+($' /(-#3( ' %&( %)'(.


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BELLE F. SALIGUMBACOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

OFELIA MARIGOMEN . PEOPLE OF THE PHILIPPINESG.R. N#. 1@6@1, 2 M) 200@, S("#$% D#$ C)55(?#, S3., .!

FACTST( $#'"( #- %#$#3 +&' /( $ ;3'$4 ) (3/)5 $#'"( $#' ($#&4. T&, - '( %3);(3 #3

+)(3 )$ #--"(3 #- ) "#3#3)'#$, '( $#'"( #- %#$#3 '# '( )% "#3#3)'#$ $#' $#'"( '# '((+5#(( #3 #--"(3 ;# %3(; #3 &(% '( "(" -#3 )$% $ ' /()5-. C#$'3&"'( $#'"( '# '(

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

T( CA 3($%(3(% ?&%4+($' )--3+$4 '( %("#$ #- '( RTC. U#$ '( %($)5 #- (3 +#'#$ -#33("#$%(3)'#$ #- '( )% %("#$, M)34#+($ -5(% '( $')$' (''#$ -#3 3((; #$ "(3'#3)3.

ISSUE:W('(3 #3 $#' '( 3(#$%($' )%%&"(% 3##- /(#$% 3()#$)/5( %#&/' #- '( 4&5' #- '(

(''#$(3 -#3 #5)'#$ #- B.P. 22

HELD:T( (''#$ 43)$'(%. F#3 #5)'#$ #- B.P. 22 '# /( "#++''(%, '( 3#("&'#$ +&' 3#( '(

-#55#;$4 (($')5 (5(+($': 1! '( +)$4, %3);$4, )$% &)$"( #- )$ "(" '# )5 -#3 )""#&$'#3 -#3 )5&( 2! '( $#;5(%4( #- '( +)(3, %3);(3, #3 &(3 ')' )' '( '+( #- &( '(3( )3( $#


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&--"($' -&$% $ #3 "3(%' ;' '( %3);(( /)$ -#3 '( )+($' #- &" "(" $ -&55 $ '3(($'+($' )$% 6! '( &/(&($' %#$#3 #- '( "(" / '( %3);(( /)$ -#3 $&--"($" #--&$% #3 "3(%' #3 %#$#3 -#3 '( )+( 3()#$ )% $#' '( %3);(3, ;'#&' )$ )5% ")&(, #3%(3(%'( /)$ '# '# )+($'.

I' %--"&5' -#3 '( 3#("&'#$ '# 3#( '( ("#$% (5(+($' #- '( "3+( /(")&( '($#;5(%4( #$ '( )3' #- '( +)(3, %3);(3 #3 &(3 ')' )' '( '+( #- &( ( %#( $#' )(&--"($' -&$% #3 "3(%' ;' '( %3);(( /)$ -#3 '( )+($' #- &" "(" $ -&55 $ '

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

3#("&'#$. A""#3%$45, 3#"(%&3)5 %&( 3#"( "5()35 ($?#$ ')' ) $#'"( #- %#$#3 /( )"'&)55(3(% #$ '( (''#$(3. T( (''#$(3 ) ) 34' '# %(+)$% )$% '( /)" #'&5)'( #- -)3$(3(&3( < ')' '( $#'"( #- %#$#3 /( )"'&)55 ($' '# )$%3("((% / (3 '# )--#3% (3 '( ##3'&$''# )(3' 3#("&'#$ &$%(3 B.P. 22.

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MARY CHRISTINE ANTHONETTE M. SALISECOMMERCIAL LAW REVIEW: NEGOTIABLE INSTRUMENTS LAW

WESTMONT BANK . INLAND CONSTRUCTION AND DEVELOPMENT CORP..G.R. N#. 126@0 M)3" 26, 2009!

FACTS:I$5)$% C#$'3&"'#$ )$% D((5#+($' C#3. I$5)$%! #/')$(% )3#& 5#)$ )$% #'(3 "3(%'

)""#++#%)'#$ -3#+ W('+#$' B)$ $ 1977. T# ("&3( '( )+($' #- ' #/54)'#$, I$5)$%(*("&'(% 3()5 (')'( +#3'4)4( #(3 '3(( 3()5 3#(3'( $ P)4 C' "#(3(% / T3)$-(3 C(3'-")'(

#- T'5( N#. 820, 821 )$% 822. I$5)$% 5(;( &(% 3#+#3 $#'( $ -)#3 #- '( /)$, :P3#+#3 N#'( N#. BD


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+:E0E*=0E! the decision appealed from is here"# A**I0;ED onl# insofar as it findsappellant Associated Bank to ha$e ratified the Deed of Assinment (E,hi"it =)!"ut 0EE0SED in all other respects! and 1udment is accordinl# rendered orderin the

plaintiff6appellee Inland Construction and De$elopment Corporation to pa# defendant6appellant Associated Bank the sum of =ne :undred Eiht# Si, /housand /wo :undred *ort#=ne Pesos and Eiht# Si, Centa$os (P?'!>.?') with leal interest thereon computed fromDecem"er ! until the same is full# paid.

T( /)$ +#(% -#3 )3')5 3("#$%(3)'#$ #- '( )(55)'( "#&3' %("#$ #$ '( )("' #- '3)'-")'#$ #- '( D((% #- A4$+($' /&' '( )+( ;) %($(% / R(#5&'#$ #- )$&)3 2, 199.T( /)$, ) ';# %--(3($' "#&$(5, -5(% /(-#3( ' C#&3' ()3)'( (''#$ -#3 3((;:

1.! G.R. N#. 126@0, A#")'(% C'($ B)$, (' )5. . C#&3' #- A()5, (' )5 )$%2.! G.R. N#. 126822, W('+#$' B)$ -#3+(35 A#")'(% B)$! . I$5)$% C#$'3&"'#$

D((5#+($' C#3., ))5$4 '( )+( )(55)'( "#&3' %("#$.

ISSUE:W('(3 #3 $#' '( (''#$(3 /)$ ) 3)'-(% '( &/?("' %(( #- )4$+($'.

HELD:T( SC 3&5(% $ )--3+)'(. T( 4($(3)5 3&5( 3(+)$ ')', $ '( )/($"( #- )&'#3' -3#+ '(

/#)3% #- %3("'#3, $# (3#$, $#' (($ ' #--"(3, ")$ )5%5 /$% ) "#3#3)'#$. I- ) "#3#3)'#$,#;((3, "#$"#&5 5(' #$( #- ' #--"(3, #3 )$ #'(3 )4($', '# )"' ;'$ '( "#( #- )$ ))3($')&'#3', ' ;55 /( ('#(% -3#+ %($$4 &" #--"(3 )&'#3'. T( 3("#3% #; ')' C)5# ;) '(#$( )4$(% '# '3)$)"' #$ (''#$(3 /()5- 3(("'$4 '( 5#)$ '3)$)"'#$ )$% )33)$4(+($' #-I$5)$% ) ;(55 ) '#( #- H)$5


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I$ '( 3(($' (''#$, (''#$(3


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T( (''#$(3 ;(3( $(454($' ;($ '( (3+''(% '( ($")+($' #- '( "(" / S)#$. T(B)$ #&5% )( -3' (3-(% 34' '# ($%#3( '( "3#(% "(", #- ;" ( ;) $#' '( )((,)$% '# %(#' '( 3#"((% #- '( "(" '# #;$ )""#&$'. T( B)$ ;) / 3()#$ #- '( $)'&3( #-'( "(" &' $ $#'"( ')' '( ;(3( &(% -#3 %(#' #$5 '# '( 3)'( 3(#$%($' )""#&$'.I' -)5&3( '# $&3( $'# S)#$ )&'#3' ;) ) /3()" #- ) %&' ' #;(% '# '( 3)'( 3(#$%($'.

T(3( /($4 $# (%($"( ')' '( "3#(% "(" ;(3( )"'&)55 3("((% / '( 3)'(3(#$%($', ( ;#&5% )( ) 34' #- )"'#$ )4)$' '( %3);(3 "#+)$(, ;" $ '&3$ "#&5% 4#

)4)$' '(3 3(("'( %3);(( /)$, ;" $ '&3$ "#&5% &( '( (3($ (''#$(3 ) "#55("'$4 /)$.I$ ) +5)3 '&)'#$, ' ;) (5% ')', '# +5- 3#"((%$4, '( )(( #- '( 55(4)55 ($")(%"(" #&5% /( )55#;(% '# 3("#(3 %3("'5 -3#+ '( /)$ 3(#$/5( -#3 &" ($")+($'3(4)3%5( #- ;('(3 #3 $#' '( "(" ;(3( )"'&)55 %(5(3(% '# '( )((.TRYLL G. CHIUCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

RC BUS LINES, INC. VS. STANDARD INSURANCE INC.@@ SCRA 96 AUGUST 17, 2011!

FACTS:R(#$%($'>P5)$'-- S')$%)3% I$&3)$"( C#., I$". STANDARD! -5(% )$ )+($%(% "#+5)$'

)4)$' '( (''#$(3, F5#3 B#5) M)$4#/) )$% RC B& L$(, I$". D(-($%)$' F5#3 B. M)$4#/), ;5(%3$4 )$ RC H$# /5&( 3//#$ )($4(3 /& $ ) 3("5( )$% +3&%($' +)$$(3, /&+(% )$% ' )1991 M'&/ L)$"(3 GL. T( &/?("' M'&/ L)$"(3 ;" #;$(% / R#%(5($( V)5($'$# ;)$&3(% -#3 5# )$% %)+)4( ;' 5)$'-- -#3 P@0,000.00. D(-($%)$' RC B& L$(, I$". '(3(4'(3(% #;$(3 #- '( P)($4(3 B&, ;5( %(-($%)$' F5#3 M)$4#/) ;) '( %3(3 #- '( &/?("'P)($4(3 B& ;($ '( )""%($' '## 5)"(.

A ) %3("' )$% 3#*+)'( ")&( #- '( ("&5)3 )""%($', '( M'&/ L)$"(3 ;)(*'($(5 %)+)4(%, '( "#' #- 3()3 #- ;" ;(3( /#3$( / '( 5)$'-- )' ) "#' #- P12,[email protected] 3'&( #- '( $&3)$"( "#$'3)"', 5)$'-- )% R#%(5($( V)5($'$# '( )+#&$' -#3 '( 3()3 #- '(M'&/ L)$"(3 ")3. A-'(3 5)$'-- ) "#+5(% ;' ' #/54)'#$ &$%(3 '( #5" +($'#$(% )/#(,5)$'-- )&3(% (*("&'(% $ 5)$'-- -)#&3 ) R(5()( #- C5)+ '(3(/ &/3#4)'$4 '( 5)''(3 '# )55 34' #- 3("#(3 #$ )55 "5)+, %(+)$% )$% 34' #- )"'#$ #$ )""#&$' #- 5#, %)+)4( #3 $?&3

) ) "#$(&($"( #- '( )""%($' -3#+ )$ (3#$ 5)/5( '(3(-#3( RC B& L$(, I$". )$% '%3(3, F5#3 B#5) M)$4#/)!.RC B& L$(, I$". +)$')$(% ')' '( "#+5)$' ')'( $# ")&( #- )"'#$ )4)$' ' ')'

($&( ;) +3#(35 5)% )$%, ')' '( %3("', ++(%)'( )$% 3#*+)'( ")&( #- '( )""%($' ;) '($(454($"( #- '( %3(3 #- '( M'&/ L)$"(3 ;($, -#3 $# 3()#$ )' )55, ' +)%( ) &%%($ '#)5#$4 '( N)'#$)5 H4;), ) - '# $')'( )$%>#3 "3()'( )$ )""%($'.

F5#3 B#5) M)$4#/), #$'(% -$4(3 )' '( %3(3 #- '( M'&/ L)$"(3 ) '( #$( ;#")&(% '( ("&5)3 )""%($' #$ '( '+(, %)'( )$% 5)"( $ &('#$. F#3 -)5&3( '# )()3 )' '(3(


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ISSUES:1! T( C#&3' #- A()5 (33#$(#&5 );)3%(% '( )+#&$' #- P12,[email protected] 3(3(($'$4 )"'&)5

%)+)4( /)(% +(3(5 #$ '( 3##- #- )+($' #- #5">$&3)$"( "5)+ )$% $#' #$ )$ #--")5 3("('#- )+($' #- )"'&)5 "#' #- 3()3

2! T( C#&3' #- A()5 (33#$(#&5 %3(4)3%(% '( #$' ')' (''#$(3 RC %(-($( #-(*'3)#3%$)3 %54($"( $ '( (5("'#$ )$% &(3#$ #- ' %3(3 ;) +)%( ) )$ )5'(3$)'(%(-($(

6! T( C#&3' #- A()5 (33#$(#&5 %3(4)3%(% '( 5(4)5 3$"5( ')' '( (% #5)'#$#- S(". 6@ #- R.A. 16 +(3(5 3(&5' $ ) %&')/5( 3(&+'#$ )$%! T( C#&3' #- A()5 (33#$(#&5 (5% ')' (''#$(3 RC ")3#&5 5)/5( -#3 '( "5)+

#- (% )"'&)5 %)+)4( $"&33(% / 3(#$%($' S')$%)3% I$&3)$"(.

HELD:=n 0C58s Lia"ilit# RC '( 3(4'(3(% #;$(3 #- '( )($4(3 /& ;) &--"($' '# ')'( ) ")&( #- )"'#$)4)$' RC. T( 3(4'(3(% #;$(3 #- ) ("5( #&5% /( 3+)35 3(#$/5( '# '( &/5" -#3 $?&3(")&(% ;5( '( ("5( $ &(. T( +)$ )+ #- +#'#3 ("5( 3(4'3)'#$ '# %($'- '( #;$(3 #')' - )$ )""%($' )($, #3 ')' )$ %)+)4( #3 $?&3 ")&(% / '( ("5( #$ '( &/5"4;), 3(#$/5' '(3(-#3( ")$ /( -*(% #$ ) %(-$'( $%%&)5, '( 3(4'(3(% #;$(3.

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

M)$4#/), /(-#3( '( "#55#$ )$% ;) %3$4 0 '# 7@ 5#+('3( (3 #&3 ;($ '( ((% 5+';) @0 5#+('3( (3 #&3. T( 3(&+'#$ &$%(3 A3'"5( 218@ #- '( C5 C#%( ;) '& 3#($'3&(: M)$4#/), ) %3(3 #- '( /& ;" "#55%(% ;' '( M'&/ L)$"(3, ;) $(454($' $"( (#5)'(% ) '3)--" 3(4&5)'#$ )' '( '+( #- '( +). W( (( $# 3()#$ '# %()3' -3#+ '( -$%$4 #-'( M(TC, RTC )$% )(55)'( "#&3' ')' M)$4#/) ;) $(454($'.

=n Su"roation I$ '( 3(($' ")(, ' ")$$#' /( %($(% ')' '( M'&/ L)$"(3 &')$(% %)+)4(.M#3(#(3, ' ")$$#' )5# /( %($(% ')' S')$%)3% )% R#%(5($( V)5($'$# P12,[email protected] -#3 '( 3()3 #-'( M'&/ L)$"(3 &3&)$' '# ) R(5()( #- C5)+ )$% S&/3#4)'#$ R("('. N('(3 RC$#3 M)$4#/) "3#


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ALBERT G. CONGCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

MERALCO VS WILCON BUILDERS SUPPLY, INC.UNE 60, 2008

FACTSW5"#$ B&5%(3 ) 3(4'(3(% "&'#+(3 #- MERALCO. I$ 1991, MERALCO $("'#3 %% )

3#&'$( $("'#$ #- '( (5("'3" +('(3 #- W5"#$. A55(4(%5, '( +('(3 ;(3( -#&$% '# )( /(($')+(3(%. M(3)5"# ((% '( +('(3) $% 5)'(3 $-#3+(% W5"#$ #- '( ')+(3$4 )$% ;) %(+)$%$4 "(3')$ &+ 3(3(($'$4 '( &$3(4'(3(% (5("'3" "#$&+'#$. W5"#$, -#3 ' )3', )% ')' '( 3()#$-#3 '( )/3&' %("3()( $ '(3 "#$&+'#$ ;) '( /3()$4 %#;$ #- '(3 7.@ '#$ )3


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MA. ONELLE S. FAUNECOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

PAL . CA,@ SCRA 12 2008!

FACTSS#+('+( /(-#3( 2 M) 1980, 3)'( 3(#$%($' #&( M)$&(5 S. B&$"# )$% A&3#3) R.

B&$"# &3")(% -3#+ (''#$(3 P5$( A35$(, I$"#3#3)'(%, ';# 5)$( '"('

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

N#5) )33(% )' '( S)$ F3)$""# A3#3'. H#;((3, '( ')-- #- U$'(% A3;) 99 3(-&(% '# ')()/#)3% D()$$) )$% N#5) -#3 '(3 "#$$("'$4 -54' '# L# A$4(5( /(")&( (''#$(3 (3#$$(5 $S)$ F3)$""# "#&5% $#' 3#%&"( '( $%(+$' /#$% )""#+5(% )$% &/+''(% / 3)'(3(#$%($'. T( )% $%(+$' /#$% ;) 5#' / (''#$(3 (3#$$(5 %&3$4 '( 3(#& '#


77/193

$"%($' '# 3)'( 3(#$%($' )$% M3. R(4)5)%#. P(''#$(3 )()5(% '# '( C#&3' #- A()5, '()(55)'( "#&3' 3#+&54)'(% ' D("#$ )--3+$4 $ '#'# '( RTC D("#$.

ISSUE:W('(3 #3 $#' '( );)3% #- +#3)5 )$% (*(+5)3 %)+)4( #$ %(-($%)$' ;) 3#(3.

HELD:

A--3+)'(. W($ )$ )35$( &( ) '"(' '# ) )($4(3, "#$-3+(% -#3 ) )3'"&5)3 -54' #$ )"(3')$ %)'(, ) "#$'3)"' #- ")33)4( )3(. T( )($4(3 ) ((3 34' '# (*("' ')' ( /('3)$#3'(% #$ ')' -54' )$% #$ ')' %)'(, )$% ' /("#+( '( )35$( #/54)'#$ '# ")33 + )$% 5&44)4( )-(5 '# '( )43((% %('$)'#$ ;'#&' %(5). I- '( )($4(3 $#' # '3)$#3'(% #3 - $ '(3#"( #- '3)$#3'$4, ( %( #3 $?&3(%, '( ")33(3 +) /( (5% 5)/5( -#3 ) /3()" #- "#$'3)"' #-")33)4(.

I$ /3()" #- "#$'3)"' #- )3 ")33)4(, +#3)5 %)+)4( +) /( 3("#(3(% ;(3( 1! '( +)3(&5' $ '( %()' #- ) )($4(3 #3 2! ;(3( '( ")33(3 4&5' #- -3)&% #3 /)% -)' #3 6! ;(3('( $(454($"( #- '( ")33(3 # 43# )$% 3("5( ) '# 3'&)55 )+#&$' '# /)% -)'. T( -#3(4#$4 "3"&+')$"( 3(-5("' (''#$(3 &''(3 5)" #- ")3( -#3 )$% $)''($'#$ '# '(;(5-)3( #- D()$$) )$% N#5) ) &$)""#+)$(% +$#3 )($4(3. T( )5# $%")'( (''#$(3-)5&3( '# (*(3"( (($ 54' ")3( )$% %54($"( $ )$%5$4 '( $%(+$' /#$%. C5()35, '(

$(454($"( #- (''#$(3 ;) # 43# )$% 3("5( ')' ' )+#&$'(% '# /)% -)'.A3'"5( 2262 #- '( C5 C#%( 3#%( ')' (*(+5)3 %)+)4( +) /( );)3%(% $ ) /3()" #-"#$'3)"' - '( %(-($%)$' )"'(% $ ) ;)$'#$, -3)&%&5($', 3("5(, #3(( #3 +)5(#5($' +)$$(3. I$)%%'#$, A3'"5( 226 '(3(#- ')'( ')' '( 5)$'-- +&' #; ')' ( ($''5(% '# +#3)5 %)+)4(/(-#3( ( ")$ /( );)3%(% (*(+5)3 %)+)4(.

P3)'( 3(#$%($' )3( ($''5(% '# +#3)5 %)+)4( /(")&( '( )( &--"($'5 (')/5(%(''#$(3 43# $(454($"( ;" )+#&$'(% '# /)% -)'. T /($4 '( ")(, '( );)3% #- (*(+5)3%)+)4( ;)33)$'(%.


78/193


79/193

EMILDAN GASTARDOCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

PAL VS SAVILLO @@7 SCRA 2008!

FACTSS)55# ;) ) ?&%4( #- '( RTC #- I5#5#. H( ;) $'(% '# )3'")'( $ '( 1996 ASEAN

S($#3 A$$&)5 G#5- T#&3$)+($' $ ))3') I$%#$(). S#, $ #3%(3 '# ')( )3' $ &" (($', (

&3")(% ) '"(' -3#+ PAL ;' '( -#55#;$4 '$(3)3: M)$5)


80/193

CLAIRE AMEROCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

ABOITI VS. COURT OF APPEALS,GR. NO. 121866, OCTOBER 17, 2008

FACTS:B(-#3( ' C#&3' )3( '3(( "#$#5%)'(% R&5( @ (''#$ )55 $#5$4 '( &( #- ;('(3 '(

3()5 )$% #'(")3 %#"'3$( +) /( $#(% / '( #;$(3 $ 3(5)'#$ '# '( 5# #- ")34#(#"")#$(% / '( $$4 #- ;9 P. A"oiti3 #$ 61 O"'#/(3 1980. T( (''#$ -5(% / A/#' S$4C#3#3)'#$ A/#'! "#++#$5 (( '( "#+&')'#$ #- ' 5)/5' $ )""#3%)$"( ;' '( C#&3'3#$#&$"(+($' $A"oiti3 Shippin Corporation $. 4eneral Accident *ire and Life AssuranceCorporation! Ltd.

T( '3(( (''#$ '(++(% -3#+ #+( #- '( ((3)5 &' -5(% )4)$' A/#' /(-#3( %--(3($'3(4#$)5 '3)5 "#&3' / (3 #3 '(3 &""(#3


81/193

RUBY LAIDCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

PHIL CHARTER . NEPTUNE ORIENT

FACTSL.T. G)3+($' M)$&-)"'&3$4 C#3. L'%. (% -3#+ H#$4 K#$4 6 (' #- ;)3 )3$ #$

3('&3$)/5( /()+ )/#)3% 3(#$%($' N('&$( O3($' L$( ((5, M>V B)5'+)3 O3#$, -#3 '3)$#3'

)$% %(5(3 '# F&&)+) M)$&-)"'&3$4 C#3#3)'#$ F&&)+)! $ M)$5). T( )% ")34#( ;(3(5#)%(% $ ) "#$')$(3 &$%(3 ) /55 #- 5)%$4. F&&)+) $&3(% '( +($' )4)$' )55 3 ;'(''#$(3 P5$( C)3'(3 I$&3)$"( C#3#3)'#$ PCIC! &$%(3 M)3$( C)34# P#5". D&3$4 '("#&3( #- '( #)4(, '( "#$')$(3 ;' '( ")34#( -(55 #(3/#)3% )$% ;) 5#'.

T&, F&&)+) ;3#'( ) 5(''(3 '# 3(#$%($' O(3() A4($" S(3"(, I$", '( )4($' #-N('&$( O3($', )$% "5)+(% -#3 '( )5&( #- '( 5#' ")34#(. H#;((3, O(3() A4($" 4$#3(% '("5)+. H($"(, F&&)+) #&4' )+($' -3#+ ' $&3(3, PCIC, -#3 '( $&3(% )5&( ;" "5)+ ;)-&55 )'-(% / PCIC. PCIC '($ %(+)$%(% -3#+ 3(#$%($' 3(+/&3(+($' #- '( ($'3( )+#&$' ')% '# F&&)+), /&' 3(#$%($' 3(-&(% )+($'. H($"(, PCIC -5(% ) "#+5)$' -#3 %)+)4()4)$' 3(#$%($'.

R(#$%($' %($(% 5)/5' )$% )55(4(% ')' %&3$4 '( #)4(, '( ((5 ($"#&$'(3(% '3#$4;$% )$% () () +)$4 '( ((5 '" )$% 3#55, ;" ")&(% '( &/?("' "#$')$(3 ;' '(

")34#( '# -)55 #(3/#)3%. T( "5)+ ')' '( #""&33($"( ;) ) -#3'&'#& (($' ;" (*(+'(% '(+-3#+ )$ 5)/5', )$% ')' '(3 5)/5', - )$, #&5% $#' (*"((% USX@00 #3 '( 5+' #- 5)/5' $ '(/55 #- 5)%$4, ;"((3 5#;(3.

T( RTC (5% ')' 3(#$%($', ) "#++#$ ")33(3, -)5(% '# 3#( ')' '( #/(3(% '(3(&3(% (*'3)#3%$)3 %54($"( '# 3(($' 5# #- '( &/?("' ")34#( )$% #3%(3(% '(+ '# ) '(5)$'-- '( )+#&$' "5)+(%. T( CA #$ '( #'(3 )$% -#&$% 3(#$%($' 5)/5' '# /( #$5 USX1,@00#3 USX@00 (3 )")4( &$%(3 '( 5+'(% 5)/5' 3##$ #- '( C)33)4( #- G##% / S() A"'COGSA!. H($"(, '( $')$' )()5.

Petitioner8s ContentionT( ((5 "#++''(% ) =&) %()'#$= ;" ) /3()" #- '("#$'3)"' #- ")33)4( ;($ ' $'($'#$)55 '3(; #(3/#)3% '( "#$')$(3 -#3 ' #;$ /($(-'. S&" /3()"#- "#$'3)"' 3(&5'(% $ '( )/3#4)'#$ #- 3(#$%($' 34' &$%(3 '( "#$'3)"' )$% COGSA $"5&%$4'( USX@00 (3 )")4( 5+')'#$.

ISSUEW>N '( 5)/5' #- '( 3(#$%($' #$5 USX1,@00 #3 USX@00 (3 )")4( ) 3#%(% $ '(

COGSA.

RULINGY(. T( -)"' ) -#&$% / '( RTC %# $#' ' '( $(; )55(4)'#$ 3(4)3%$4 '( $'($'#$)5

'3#;$4 #(3/#)3% #- '( &/?("' ")34#( )$% &) %()'#$. T( C#&3' $#'( ')' '( (''#$(3C#+5)$' )$% '( &3( 3(#3' 3#%( ')' '( +($' ;(3( 5#'>-(55 #(3/#)3%. T( 3("#3% #;')' '( &/?("' ")34#( -(55 #(3/#)3% '( )$% (''#$(3 #&5% $#' )3 '( -)"' #- '( ")( #$)()5.


82/193

S$"( '( &/?("' ")34#( ;(3( 5#' ;5( /($4 '3)$#3'(% / 3(#$%($' "#++#$ ")33(3 -3#+H#$4 K#$4 '# '( RP < P5$( 5); )5( &3&)$' '# '( C5 C#%(. T( 34' )$% #/54)'#$ #-3(#$%($' "#++#$ ")33(3 )3( '& 4#(3$(% / '( 3##$ #- '( C5 C#%(, )$% '( COGSA,;" ) (")5 5); )5$4 &5('#35.

T( (3'$($' 3##$ #- '( C5 C#%( )5")/5( '# ' ")( )3( ) -#55#;:Art. >. A stipulation that the common carrierFs lia"ilit# is limited to the $alue of the oods

appearin in the "ill of ladin! unless the shipper or owner declares a reater $alue! is "indin.

Art. 7@. A contract fi,in the sum that ma# "e reco$ered "# the owner or shipper for the loss!destruction! or deterioration of the oods is $alid! if it is reasona"le and 1ust under the circumstances!and has "een fairl# and freel# areed upon.

I$ )%%'#$, S(". , )3)43) @! #- '( COGSA, ;" )5")/5( '# )55 "#$'3)"' -#3 '(")33)4( #- 4##% / () '# )$% -3#+ P5$( #3' $ -#3(4$ '3)%(, 3#%(: either the carrier northe ship shall in an# e$ent "e or "ecome lia"le for an# loss or damae to or in connection with thetransportation of oods in an amount e,ceedin G7@@ per packae lawful mone# of the 2nited States!or in case of oods not shipped in packaes! per customar# freiht unit! or the e-ui$alent of that sum inother currenc#! unless the nature and $alue of such oods ha$e "een declared "# the shipper "eforeshipment and inserted in the "ill of ladin. /his declaration! if em"odied in the "ill of ladin shall "e

prima facie e$idence! "ut shall "e conclusi$e on the carrier.I$ ' ")(, B55 #- L)%$4 '&5)'(: either the Carrier nor the $essel shall in an# e$ent

"ecome lia"le for an# loss of or damae to or in connection with the transportation of 4oods in anamount e,ceedin 2SG7@@ (which is the packae or shippin unit limitation under 2.S. C=4SA) unlessthe nature and $alue of such 4oods ha$e "een declared "# the Shipper "efore shipment and insertedin this Bill of Ladin and the Shipper has paid additional chares on such declared $alue. . . .

T( /55 #- 5)%$4 &/+''(% $ (%($"( / (''#$(3 %% $#' #; ')' '( (3 $ H#$4 K#$4%("5)3(% '( )"'&)5 )5&( #- '( 4##% ) $&3(% / F&&)+) /(-#3( +($' )$% ')' '( )%)5&( ;) $(3'(% $ '( B55 #- L)%$4, )$% # $# )%%'#$)5 ")34( ;(3( )%. H($"(, '( '&5)'#$$ '( /55 #- 5)%$4 ')' '( ")33(3 5)/5' )55 $#' (*"((% USX@00 (3 )")4( )5(.

A '&5)'#$ $ '( /55 #- 5)%$4 5+'$4 '( "#++#$ ")33(3 5)/5' -#3 5# #3 %('3&"'#$ #- )")34# '# ) "(3')$ &+, &$5( '( (3 #3 #;$(3 %("5)3( ) 43()'(3 )5&(, )$"'#$(% )$% )55#;(%/ 5);. I' ((+ "5()3 ')' (($ - )% ("'#$ @! #- '( C)33)4( #- G##% / S() A"' %% $#' (*','( )5%' )$% /$%$4 (--("' #- '( 5)/5' 5+')'#$ "5)&( $ '( /55 #- 5)%$4 (3( )3( $((3'(5(

-&55 &')$)/5( #$ '( /) )5#$( #- '( "'(% C5 C#%( P3##$.


83/193

DANIEL P. LONGAUITCOMMERCIAL LAW REVIEW: TRANSPORTATION LAWS

PPA NIASSI@7@ SCRA 291

FACTS:P(''#$(3 NIASSI ) %#+('" "#3#3)'#$ %&5 #34)$(% )$% (*'$4 &$%(3 P5$( 5);

;' #--"( )%%3( )' T)5), N)', A4&)$ %(5 N#3'(. I' ) /(($ #(3)'$4 $ '( '((%#3$4

/&$( -#3 )' 5()' 1@ ()3.R(#$%($' PPA ) 4#(3$+($' )4($" ")34(% ;' '( +)$)4(+($' )$% "#$'3#5 #- )55P5$( #3'. I' 3+)35 ')(% '# ")33 #&' )$ $'(43)'(% 3#43)+ -#3 '( 5)$$$4, %((5#+($',-$)$"$4, )$% #(3)'#$ #- #3' '3#&4#&' '( "#&$'3.

I$ N#(+/(3 2000, '( PPA, '3#&4 ' P3(


84/193

Y(. NIASSI ) /(($ %(3(% %&( 3#"(, ')($ '#4('(3 ;' '( "3"&+')$"( ')' '(3(&5'$4 #3%(3 ;(3( ++(%)'(5 (*("&'#3, (3-#3"( ')( ' ")( #&'%( '( &3(; #- '( 3&5(3(&3$4 ) 3(#& +#'#$ -#3 3("#$%(3)'#$. T( %(3)'#$ #- NIASSI 34' '# %&( 3#"( ')$''( 3#"((%$4 )4)$' '. T( "#&3' #3%(3 ;" ;) ++(%)'(5 (*("&'#3 3($%(3 '( +)''(3 )#$( #- (*'3(+( &34($". T( '&)'#$ ()5 -)55 &$%(3 #$( #- '( 3("#4$(% (*"('#$ '# '( 3&5(')' ) +#'#$ -#3 3("#$%(3)'#$ #&5% -3' /( ))5(% #- /(-#3( -5$4 ) (''#$ -#3 certiorari.

B( ')' ) ' +), ;($ '( 3&5( #- 3#"(%&3( )3( 34% )$% '3"' $ )5")'#$, 3(&5'$4 $

'("$")5'( ')' '($% '# -3&'3)'( 3)'(3 ')$ 3#+#'( ?&'"(, '( C#&3' (+#;(3(% '# &($%'(+.I' ;#&5% /( $ '( $'(3(' #- ?&'"( '# 3($')'( '( 3(5+$)3 +)$%)'#3 $?&$"'#$ '( RTC

) ()35(3 &(% $ -)#3 #- NIASSI. T( '((%#3$4 "#+)$ ) 3#($ ')' ' ')$% '# &--(333()3)/5( $?&3 ;' PPA "#$'$&(% &( #- ' -)"5'( )$% ')(#(3 #- '( #3'. E($ '#&4 PPA ) 4#(3$+($')5 )3+, ' %#( $#' ')$% )/#( '( 5); $ '( 4&( #- 3#'("'$4 '( &/5" $'(3('.

I' #&5% )5# /( $#'(% ')' )$ )33)'3( "#$'3)"' $#' )$ #3%$)3 )43((+($' $#5$4 +(3(5)3'( '(3($, ) ' )--("' '( &/5" $ 4($(3)5. I$ )55 "#$'3)"', '( 5); +&' 3#'("' )55 )3'( $("&3$4 -)3 5) )$% (&' '# 3()5.


85/193

CERIL OHNSON A. MILANACOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

METROPOLITAN CEBU WATER DISTRICT V. MARGARITA ADALA 2007!

FACTS:R(#$%($' -5(% #$ O"'#/(3 2, 2002 )$ )5")'#$ ;' '( N)'#$)5 W)'(3 R(#&3"( B#)3%

NWRB! -#3 '( &)$"( #- ) C(3'-")'( #- P&/5" C#$($($"( CPC! '# #(3)'( )$% +)$')$

;)'(3;#3 '(+ $ '# S)$ V"($'(, F)'+), )$% S)+/)4 $ B)3)$4) B&5)")#, C(/& C'. A' '($')5 ()3$4 #- D("(+/(3 1, 2002 %&3$4 ;" 3(#$%($' &/+''(% 3##- #- "#+5)$"( ;'?&3%"'#$)5 3(&3(+($' #- $#'"( )$% &/5")'#$, (3($ (''#$(3 M('3##5')$ C(/& W)'(3 D'3"',) 4#(3$+($'


86/193


87/193

CHRISTINE MAE NAVARRACOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

MENDOA . SORIANO,@2 SCRA 20 2007!

FACTS:S#3)$# ;) ' / '( ((%$4 F %3($ / M)"))) ) ( ;) "3#$4 C#++#$;()5'

A($&( ;" ")&(% %()'. H( ;) '3#;$ @M );) )$% '( F ;) #$5 )/5( '# '# )' )3#&$%2@M );) -3#+ '( #$' #- +)"'. V55))$, #$( #- S#3)$# "#+)$#$, )(% M)"))) '# /3$4+ '# ) #')5 /&' ( #$5 3('&3$(% '# '( F )$% (% );). A "3+$)5 ")( -#3 3("5(+3&%($"( 3(&5'$4 '# #+"%( ;) -5(% )4)$' M)"))) ;5( )$#'(3 "#+5)$' -#3 %)+)4(;) -5(% )4)$' M)"))) )$% M($%#), '( 3(4'(3(% #;$(3 #- '( F. M($%#) +)$')$(% ')'( ;) $#' 5)/5( $"( ) #;$(3 #- '( ("5(, ( )% (*(3"(% '( %54($"( #- ) 4##% -)'(3 #- )-)+5 #(3 (3 (+5#((, M)"))).

ISSUE:W('(3 S#3)$# ")$ /( (5% 5)/5( -#3 %)+)4( -#3 '( %()' #- S#$$

HELD:

U$%(3 A3'"5( 2180 #- '( C5 C#%(, (+5#(3 )3( 5)/5( -#3 '( %)+)4( ")&(% / '(3(+5#(( )"'$4 ;'$ '( "#( #- '(3 )4$(% '). T( 5)/5' )3( %&( '# '( 3(&+(%$(454($"( #- '( (+5#(3 $ &(3$4 '(3 (+5#(( &$5( '( 3#( ')' '( #/(3(% )55 '(%54($"( #- ) 4##% -)'(3 #- ) -)+5 '# 3(($' '( %)+)4(. M($%#) 3+)35 )$% #5%)35 5)/5(-#3 (3 -)5&3( '# (*(3"( %&( %54($"( $ &(3$4 M)"))). S( )% /(($ &$)/5( '# 3#( ')'( )% (*(3"(% '( %54($"( #- ) 4##% -)'(3 #- ) -)+5 $ &(3$4 M)"))). T( "#$'3/&'#3$(454($"( #- S#3)$# -#3 $#' &$4 '( (%('3)$ #(3) #$5 (3( ) ) +'4)'$4 "3"&+')$"(.


88/193

GLEN A. PETILLACOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

BARBA )$% RENATO GONALES .HON. COURT OF APPEALSG.R. NO. 19761 : M)3" 28, 2007

FACTS:T( -$%$4 #- '( L)/#3 A3/'(3, '( NLRC )$% '( C#&3' #- A()5 )3( &$)$+#&: B)3/)

4&5' #- $"#33("'5 3("#3%$4 @@ 5#43)+ #- /)44)4( ) 18 5#43)+, ;5( G#$)5( ;) 4&5' #-#5"'$4 USX100 -3#+ ) )($4(3 $ (*")$4( -#3 )55#;$4 (3 '# "("


89/193

WILLIAM OSEPH . RADAACOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

MENDOA VS. SORIANO@2 SCRA 20 UNE 28, 2007!

FACTS:S#$$ S#3)$#, ;5( "3#$4 C#++#$;()5' A($&( $ &(#$ C', ;) ' / ) ((%$4

T)+)3); F %3($ / L#+(3 M)"))). S#3)$# %(% /(")&( #- '( )""%($'. H ;-( )$% %)&4'(3,3(("'(5, -5(% ) "#+5)$' -#3 %)+)4( )4)$' M)"))) )$% (''#$(3 F5#3%(5) M($%#), '(3(4'(3(% #;$(3 #- '( ("5(. P(''#$(3 M($%#) +)$')$(% ')' ( ;) $#' 5)/5( $"( ) #;$(3#- '( ("5(, ( )% (*(3"(% '( %54($"( #- ) 4##% -)'(3 #- ) -)+5 #(3 (3 (+5#((,M)"))). U#$ 3(#$%($' S#3)$#! +#'#$, '( "#+5)$' -#3 %)+)4( )4)$' M)"))) ;)%+(%.

P(''#$(3 -&3'(3 )34&( ')' $"( 3(#$%($' ")&(% '( %+)5 #- '( "#+5)$' )4)$'M)"))), '(3( $# 5#$4(3 )$ /) '# -$% (3 5)/5(. S( "5)+ ')' $# #') #- (%($"( ;)3(($'(% $ ' ")( '# 3#( M)"))) $(454($"(, )$% /(%(, 3(#$%($' ")$ 3("#(3%)+)4( $ '( "3+$)5 ")( )4)$' +.

T( 5#;(3 "#&3' 3&5(% ')' (''#$(3 ;) $#' $(454($' $ '( (5("'#$ )$% &(3#$ #-M)"))) $"( "#+5)$)$' 3(($'(% $# (%($"( '# ' '(3 )55(4)'#$ #- (''#$(3

$(454($"(. T( )(55)'( "#&3' )43((% ')' S#3)$# ;) $(454($', /&' ' )5# -#&$% M)")))$(454($' -#3 ((%$4, &" ')' ( ;) &$)/5( '# )#% ''$4 '( "'+. I' #/(3(% ')' S#3)$##;$ $(454($"( %% $#' 3("5&%( 3("#(3 #- %)+)4( -3#+ M)"))) $(454($"(. I' -&3'(3 (5% ')'$"( (''#$(3 -)5(% '# 3(($' (%($"( '# '( "#$'3)3, )$% "#$-#3+)/5 ;' A3'"5( 2180 #- '( C5C#%(, '( 3(&+'#$ #- $(454($"( #- '( (+5#(3 $ '( (5("'#$ )$% &(3#$ #- (+5#(('##%.

ISSUE:W('(3 #3 $#' 3(#$%($' ")$ "5)+ %)+)4( )4)$' M($%#), '( #;$(3 #- '( ("5(

%('( ')' %)+)4( +) /( "5)+(% / 3(#$%($' $ '( "3+$)5 ")( )4)$' '( %3(3 #- '(("5(.

HELD:

R(#$%($' ")$ "5)+ %)+)4( )4)$' M($%#), '( #;$(3 #- '( ("5(. W5(3(#$%($' "#&5% 3("#(3 %)+)4( -3#+ M)"))) $ ) "3+$)5 ")( )$% (''#$(3 "#&5% /("#+(&/%)35 5)/5(, '55 (''#$(3, ) #;$(3 )$% (+5#(3, %3("'5 )$% ()3)'(5 "55 5)/5( -#3 (3-)5&3( '# (*(3"( %&( %54($"( $ &(3$4 M)"))). I' +&' /( (+)(% ')' ' %)+)4( &' -#3 '( &)


90/193

I$ ' ")(, ;( #5% (''#$(3 3+)35 )$% #5%)35 5)/5( -#3 '( %)+)4( ")&(% /M)"))). R(#$%($' "#&5% 3("#(3 %3("'5 -3#+ (''#$(3 $"( (''#$(3 -)5(% '# 3#( ')' ((*(3"(% '( %54($"( #- ) 4##% -)'(3 #- ) -)+5 $ &(3$4 M)"))).

BELLE F. SALIGUMBACOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

LADECO VS ANGALA,G.R. NO. 1@607

FACTS:A D)'&$ "3(;")/, %3($ / A#5#$# D(#")+# D(#")+#! /&+(% $'# ) 19@8 C( "T B((?) 5(-' '( M)$5) S#&'H)3/#3 ;' A"&)3# /)34( $ '#;. I' 3()"(% '( #3' #- L+), B)'))$, ;(3($ M>T B((?)%($4)4(% )$% #$"( )4)$ (' )5 -#3 M)$5). P(''#$(3 #'(3 '&4/#)', '( M>T C#&$', 3(+)$(% $B)'))$ '# ("&3( '( /)34( -#3 &$5#)%$4.

O$ '( )+( %), '( /)34( ;) /3#&4' '# A"&)3# )3% ;(3( ' ;) )55(4(%5%"#(3(% ')' '( /)34( ;) 5'$4 %&( '# ) 5() $ ' &55. T( /)34( ;) "#$(&($'5 %3


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ISSUE: W('(3 #3 $#' (''#$(3 C)34#5-' S$4 5)/5( -#3 '( %)+)4( &--(3(% / L.A"'&)3# II /)34(.

HELD:

A--3+)'(. I$ '( (3-#3+)$"( #- (''#$(3 C)34#5-' "#$'3)"'&)5 #/54)'#$ '# S5)$%, (''#$(3;) 3(&3(% '# #/(3( '( %&( %54($"( #- ) 4##% -)'(3 #- '( -)+5. T +&" ;) (5% $ '( #5%

/&' '55 3(5()$' ")( #- Baer Senior H Co.8s Successors $. La Compania ;aritima;(3( '( C#&3'(*5)$(% ')' ) '&4 )$% ' #;$(3 +&' #/(3( #3%$)3 %54($"( $ '( (3-#3+)$"( #- ' #/54)'#$&$%(3 ) "#$'3)"' #- '#;)4(. T( $(454($"( #- '( #/54#3 $ '( (3-#3+)$"( #- '( #/54)'#$ 3($%(3+ 5)/5( -#3 %)+)4( -#3 '( 3(&5'$4 5# &--(3(% / '( #/54((. F)&5' #3 $(454($"( #- '( #/54#3"#$' $ -)5&3( '# (*(3"( %&( ")3( )$% 3&%($"( $ '( (3-#3+)$"( #- '( #/54)'#$ ) '($)'&3( #- '( #/54)'#$ # %(+)$%.

I$ '( ")( )' /)3, '( (*(3"( #- #3%$)3 3&%($"( / (''#$(3 +()$ ($&3$4 ')' ''&4/#)' -3(( #- +(")$")5 3#/5(+. W5( )%(3( ;()'(3 ) )5;) /(($ ) 3()5 '3()' '#+)3'+( "#++(3"(, '( 5()' ')' (''#$(3 "#&5% )( %#$( ;) '# ($&3( ')' '( M>T C#&$' #3 )$#- ' #'(3 '&4/#)' ;#&5% /( )/5( '# ("&3( '( /)34( )' )55 '+( %&3$4 '( ($4)4(+($'. T ((")55 '3&( ;($ "#$%(3(% ;' '( -)"' ')' A"&)3# /)34( ;) ;#55 %(($%($' $(''#$(3 '&4/#)' -#3 3#&5#$. T( /)34( ;) $#' (&(% ;' )$ ($4$( )$% $((%(% ) '&4/#)'

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


98/193

ELYNUR H. GAMBETCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

MANANARES V. PEOPLE@0 SCRA 6@ 200!

FACTSA ("&5)3 "#55#$ '## 5)"( )5#$4 M)"A3'&3 H4;), M)5#5#, B&5)")$ $#5$4 )$ I&&

*


99/193

EMILDAN GASTARDOCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

ABOITI SHIPPING CORP. VS NEW INDIA ASSURANCE COMPANY LTD.88 SCRA @6 200!

FACTS:S#"('( F3)$")( D( C#55#%( 5#)%(% ) ")34# #- '(*'5( )$% )&*5)3 "(+")5 -3#+ F3)$"(

#$ /#)3% ) ((5 #;$(% / F3)$"#


100/193

CLAIRE AMEROCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

VILLAMARIA, R. V CA CALLEO, SR.APRIL 19, 200

FACTSP(''#$(3 O")3 V55)+)3), 3. ;) '( #;$(3 #- V55)+)3) M#'#3, ) #5( 3#3('#3

($4)4(% $ )(+/5$4 )($4(3 ?(($( ;' ) &/5" &'5' -3)$"( '# #(3)'( )5#$4 '(B)"5)3)$


101/193

2. A ) "#3#55)3, W('(3 #3 $#' '( L)/#3 A3/'(3 ) ?&3%"'#$ #(3 ) "#+5)$' -#3 55(4)5%+)5 $ &" ) ")(J

RULING:1. NO. U$%(3 '( /#&$%)3


102/193

RUBY LAIDCOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

MARIKINA AUTO LINE TRANSPORT CORPORATION . PEOPLE OF THE PHILIPPINES )$%ERLINDA V. VALDELLON, G.R. N#. 1@200 M)3" 61, 200

FACTS:E35$%) V. V)5%(55#$ '( #;$(3 #- ) ';#


103/193

)+( %3("'#$, )$% ;($ '&3$$4 '# '( 5(-' $ 4#$4 -3#+ #$( 4;) '# )$#'(3, ((3 ("5()55 /( "#$%&"'(% '# '( 34' #- '( "($'(3 #- '( $'(3("'#$ #- '( 4;).S("'#$ 6@ #- '( 5); 3#%(, '&:

S(". 6@. R('3"'#$ ) '# ((%.)! A$ (3#$ %3$4 ) +#'#3 ("5( #$ ) 4;))55 %3( '( )+( )' ) ")3(-&5 )$% 3&%($' ((%, $#' 43()'(3 $#3 5( ')$ 3()#$)/5( )$%3#(3, )$4 %&( 3(4)3% -#3 '( '3)--", '( ;%' #- '( 4;), )$% #- )$ #'(3 "#$%'#$'($ )$% '(3( (*'$4 )$% $# (3#$ )55 %3( )$ +#'#3 ("5( $ ) 4;) )' &" )

((% ) '# ($%)$4(3 '( 5-(, 5+/ )$% 3#(3' #- )$ (3#$, $#3 )' ) ((% 43()'(3 ')$ ;55(3+' + '# /3$4 '( ("5( '# ) '# ;'$ '( )&3(% "5()3 %')$"( )()%.

I$ 3(5)'#$ '(3('#, A3'"5( 218@ #- '( N(; C5 C#%( 3#%( ')' =&$5( '(3( 3##- '# '("#$'3)3, ' 3(&+(% ')' ) (3#$ %3$4 ) +#'#3 ("5( ) /(($ $(454($', - )' '( '+( #-+), ( ;) #5)'$4 )$ '3)--" 3(4&5)'#$.= B #;$ )%+#$, (''#$(3 S&(5'# #5)'(% '(L)$% T3)$#3')'#$ )$% T3)--" C#%( ;($ ( &%%($5 ;(3(% '( /& '# '( 34', '(3(/ ")&$4%)+)4( '# '( 3#(3' #- 3)'( 3(#$%($'.

H#;((3, '( '3)5 "#&3' "#33("'5 3(?("'(% (''#$(3 S&(5'# %(-($(, $ 54' #- "#$'3)%"'#3'('+#$


104/193

CERIL OHNSON A. MILANACOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

PHILIPPINE CHARTER INSURANCE CORPORATION VS. UNKNOWN OWNER OF THE VESSELM>V NATIONAL HONOR, NATIONAL SHIPPING CORPORATION OF THE PHILIPPINES AND

INTERNATIONAL CONTAINER SERVICES, INC. G.R. NO. 11866. ULY 8, 200@

FACTS: P(''#$(3 P5$( C)3'(3 I$&3)$"( C#3#3)'#$ PCIC! '( $&3(3 #- ) +($' #$ /#)3%

'( ((5 M>V N)'#$)5 H#$#3, 3(3(($'(% $ '( P5$( / ' )4($', N)'#$)5 S$4C#3#3)'#$ #- '( P5$( NSCP!. T( M>V N)'#$)5 H#$#3 )33(% )' '( M)$5) I$'(3$)'#$)5C#$')$(3 T(3+$)5 MICT!. T( I$'(3$)'#$)5 C#$')$(3 T(3+$)5 S(3"(, I$"#3#3)'(% ICTSI! ;)-&3$(% ;' ) "# #- '( "3)'( ")34# 5' )$% /55 #- 5)%$4, )$% ' $(; '( "#$'($' #- '( "3)'(. T(-#55#;$4 %), '( ((5 ')3'(% %")34$4 ' ")34#( &$4 ' ;$" "3)$(. T( "3)$( ;) #(3)'(%/ O5(4)3# B)5), ) ;$"+)$ -3#+ '( ICTSI, (*"5&( )33)'3( #(3)'#3 #- MICT. D($)'# D)&, 3., '( "("(3V N)'#$)5 H#$#3, NSCP)$% ICTSI. B#' RTC )$% CA %+(% '( "#+5)$'.

ISSUE:W('(3 #3 $#' '( 3(&+'#$ #- $(454($"( )5")/5( $ '( $')$' ")(.

HELD:N#. T( "#++#$ ")33(3 %&' '# #/(3( '( 3(&'( %54($"( $ '( +($' #- 4##% 5)'

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

H#;((3, &$%(3 A3'"5( 176 #- '( N(; C5 C#%(, '( 3(&+'#$ #- $(454($"( %#( $#')5 '# )$ #- '( -#55#;$4 ")&(:

1. F5##%, '#3+, ()3'&)(, 54'$$4 #3 #'(3 $)'&3)5 %)'(3 #3 ")5)+'2. A"' #- '( &/5" ($(+ $ ;)3, ;('(3 $'(3$)'#$)5 #3 "56. A"' #3 #+#$ #- '( (3 #3 #;$(3 #- '( 4##%. T( ")3)"'(3 #- '( 4##% #3 %(-("' $ '( )"$4 #3 $ '( "#$')$(3@. O3%(3 #3 )"' #- "#+('($' &/5" )&'#3'.


105/193

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

"#$'($'.

CHRISTINE MAE NAVARRACOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

SCHMIT TRANSPORT BROKERAGE CORPORATION . TRANSPORT VENTURE, INC.,@ SCRA @@7 200@!

FACTS:SYTCO P'( L'%. S$4)#3( (% '((5 ((' -3#+ R&) '# M)$5) #$ /#)3% M>V

=A5(*)$%(3 S)(5(=, ) R&)$ ((5 #;$(% / B5)" S(), $ -)#3 #- "#$4$((, L''5( G)$' S'((5

P( C#3#3)'#$. S&" ")34#( ;(3( $&3(% )4)$' )55 3 ;' I$%&'3)5 I$&3)$"( C#+)$.C#$4$(( '($ ($4)4(% '( (3"( #- S"+' T3)$#3' '# ("&3( '( 3(&'( "5()3)$"(, '#3("(( '( ")34#( -3#+ '( %(, )$% '# %(5(3 '(+ '# ' ;)3(#&(. S"+' )5# ($4)4(% '((3"( #- TVI '# ($% ) /)34( )$% '&4/#)' )' %(.

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

ISSUE:W('(3 #3 $#' '( 5)/5' -#3 '( 5# +) )'')" '# B5)" S(), S"+' )$% TVI

HELD:TVI -)5&3( '# 3#+'5 3#%( ) '&4/#)' %% $#' #$5 $"3()( '( 3 ')' +4' )( /(($

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

T( C#&3' #5% '($ ')' S"+' )$% TVI )3( #5%)35 5)/5( -#3 '( 5# #- '( ")34#(. A -#3B5)" S(), ' %&' ) ) "#++#$ ")33(3 (*'($%(% #$5 -3#+ '( '+( '( 4##% ;(3( &33($%(3(% #3&$"#$%'#$)55 5)"(% $ ' #(#$ )$% 3("((% -#3 '3)$#3')'#$ &$'5 '( ;(3( %(5(3(%)"'&)55 #3 "#$'3&"'(5 '# "#$4$(( L''5( G)$'.


106/193

GLEN PETILLACOMMERCIAL LAW REVIEW: TRANSPORTATION LAW

CRESCENT PETROLEUM, LTD., VS. M>V LOK MAHESHWARI, THE SHIPPING CORPORATIONOF INDIA )$% PORTSERV LIMITED )$%>#3 TRANSMAR SHIPPING, INC.,

G.R. NO. 1@@01

FACTSR(#$%($' M>V L# M)(;)3 V((5! )$ #"()$4#$4 ((5 #- I$%)$ 3(4'3, #;$(%

/ 3(#$%($' S$4 C#3#3)'#$ #- I$%) SCI!, ) "#3#3)'#$ #34)$(% )$% (*'$4 &$%(3 '( 5);#- I$%) )$% 3$")55 #;$(% / '( G#(3$+($' #- I$%). I' ;) '+(#3 C)3'(3(3 #- M>V L# M)(;)3 $ '()+#&$' #- USX106,@.00 ;' $'3&"'#$ '# 3(+' '( )+#&$' #$ #3 /(-#3( D("(+/(3 1, 199@. T((3#% 5)(% )$% ((3)5 %(+)$% ;(3( +)%( /&' $# )+($' ;) 3("((%.

O$ M) 2, 199, ;5( '( V((5 ;) %#"(% )' '( #3' #- C(/& C', (''#$(3 C3("($'$''&'(% /(-#3( '( RTC #- C(/& C' )$ )"'#$ -#3 ) &+ #- +#$( ;' 3)(3 -#3 '(+#3)33('3)$$4 #3%(3 )$% ;3' #- 3(5+$)3 )'')"+($' )4)$' 3(#$%($' V((5 )$% SCI, P#3'(3)$%>#3 T3)$+)3.

ISSUE

W('(3 #3 $#' P5$( "#&3' )( ?&3%"'#$ #(3 ) -#3(4$ ((5 -#&$% $%( P5$(;)'(3 -#3 '( ($-#3"(+($' #- ) +)3'+( 5($ )4)$' )% ((5 )$%>#3 ' #;$(3 )$% #(3)'#3

RULINGT ")( -#3 '( )'-)"'#$ #- &$)% &5( -&3$(% / ) -#3(4$ &5(3 $ ) -#3(4$

#3' '# ) ((5 #- -#3(4$ 3(4'3 ')' #;$(%, ")3'(3(% )$% &/

8/12/2019 Final Collated C

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Final Collated Commercial Law Digests