21. vesagas v CA

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Vesagas vs. CA Case Digest

Vesagas vs. Court of Appeals[GR 142924, December 5, 2001

!acts"Spouses Delfino and Helenda Raniel are members in good standing of the LuzVillage Tennis Club, Inc. #eo$oro %. Vesagas, &'o cla(ms to be t'e club)s $ul*electe$ pres($e+t, ith !ilfred D. "sis, ho, in turn, claims to be its dul# elected $ice%president and legal counsel, allegedl# summaril# stripped them of their lafulmembership, ithout due process of la. Thereafter, the spouses filed a Complaint iththe Securities and &'change Commission (S&C) on *+ arch -/ against theVesagas and "sis (S&C Case 01%/%223). The spouses Raniel as4ed the Commissionto declare as illegal their e'pulsion from the club as it as allegedl# done in utterdisregard of the pro$isions of its b#%las as ell as the re5uirements of due process.The# li4eise sought the annulment of the amendments to the b#%las made on 3

December -+, changing the annual meeting of the club from the last Sunda# of6anuar# to 7o$ember and increasing the number of trustees from nine to fifteen. 8inall#,the# pra#ed for the issuance of a Temporar# Restraining 9rder and !rit of :reliminar#In;unction.

The application for TR9 as denied b# S&C Hearing 9fficer Soller in an 9rder dated *"pril -/.

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aare of the incorporation of the club and e$en agreed to get elected and ser$e as itsresponsible officers before the# reconsidered dissol$ing its corporate form. 9n the otherhand, at the time of the institution of the case ith the S&C, the club as not dissol$edb# $irtue of an alleged certification. Lastl#, and mostimportant of all, the S&C 9rder of Dissolution as ne$er submitted as e$idence.

FIRST DIVISION

[G.R. No. 142924. December 5, 2001]

TEODORO B. VESAGAS, a! "I#FRED D. ASIS,petitioners, vs. T$e %oorab&e 'O(RT OF

A))EA#S a! DE#FINO RANIE# a! %E#ENDA RANIE#, respondents.

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D E ' I S I O N

)(NO,J.*

Be+ore - - /$e -/a/ )e//o +or Ree o Certioraria--a& /$e Dec-o, !a/e! 3& 0,

1999, o+ /$e 'or/ o+ A66ea&- 'A7G.R. S) No. 51189, a- e&& a- /- Re-o&/o, !a/e! arc$1:, 2000, $c$ !ee! 6e//oer- o/o +or Reco-!era/o.

T$e re-6o!e/ -6o-e- De&+o a! %e&e!a Rae& are member- oo! -/a! o+ /$e #;

V&&ae Te- '&b, Ic.

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I -66or/ o+ /$er +r-/ a--me/ o+ error, 6e//oer- co/e! /$a/ -ce /- ce6/o /$e

19?0-, /$e c&b 6rac/ce $a- o/ bee a cor6ora/o. T$e a!! /$a/ / a- o& /$e re-6o!e/

-6o-e-, mo/a/e! b /$er o 6er-oa& ae!a /o ma@e moe +rom /$e c&b, $o-rre6//o-& ca-e! /- re-/ra/o /$ /$e SE'. T$e /$e a--er/ /$a/, a/ a ra/e, /$e c&b

$a- a&rea! cea-e! /o be a cor6ora/e bo!. T$ere+ore, o /ra7cor6ora/e re&a/o- ca ar-e a-

be/ee /$e re-6o!e/ -6o-e- a! /$e c&b or a o+ /- member-. S/re/c$ /$er arme/+r/$er, 6e//oer- --/ /$a/ -ce /$e c&b, b /$er rec@o - o/ a cor6ora/o, /$e SE' !oe-

o/ $ae /$e 6oer or a/$or/ /o re /o /$e a&!/ o+ /$e e>6&-o o+ /$e re-6o!e/

-6o-e-. 'o-ee/&, / - o/ /$e correc/ +orm /o ree /$e c$a&&ee! ac/. I coc&-o,6e//oer- 6/ re-6o!e/ -6o-e- /o /a-@ +or /$er +a&re /o m6&ea! /$e c&b a- a ece--ar or

!-6e-ab&e 6ar/ /o /$e ca-e.

T$e-e arme/- cao/ 6a-- !ca& m-/er.

)e//oer- a//em6/ /o m6re-- 6o /$- cor/ /$a/ /$e c&b $a- eer bee a cor6ora/o - !eo!

o+ mer/. I/ m-/ +a& /$e +ace o+ /$e 'omm--o- e>6&c/ +! /$a/ /$e c&b a- !&

re-/ere! a! a cer/+ca/e o+ cor6ora/o a- --e! /- +aor, /$-*

"e aree /$ /$e $ear o++cer /$a/ /$e ro!- ra-e! b 6e//oer /$er mo/o /o !-m--

are +ac/a& --e-, /$e erac/ o+ $c$ ca o& be a-cer/ae! a +&& b&o $ear. Records

show that the association is duly registered with the association and a certificate of

incorporation was issued. Clearly, the Commission has jurisdiction over the said

association. A- /o 6e//oer- a&&ea/o /$a/ /$e re-/ra/o o+ /$e c&b a- !oe /$o/ /$e

@o&e!e o+ /$e member-, /$- - a crcm-/ace $c$ a- o/ !& 6roe b /$e 6e//oer[9]a&&ee!*

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1. T$- 'omm--o $a- o r-!c/o oer /$e #; V&&ae Te- '&b o/ o& beca-e / a-

o/ m6&ea!e! b/ because since % &anuary '((), it had already rid itself, as it had to in

order to maintain respect and decency among its members, of the unfortunate e*perience

of being a corporate body. "hus at the time of the filing of the complaint, the club had

already dissolved its corporate e*istencea! $a- +c/oe! a- a mere a--oca/o o+

re-6ec/ab&e a! re-6ec/ !!a& member- $o $ae a--oca/e! /$em-e&e- -ce /$e 19?0-> > >>[10]

T$e ece--ar m6&ca/o o+ a&& /$e-e - /$a/ 6e//oer- reco;e! a! ac@o&e!e! /$e

cor6ora/e 6er-oa&/ o+ /$e c&b. O/$er-e, /$ere - o coec -6ear$ea! /$e moe +or /-

!--o&/o. )e//oer- ere /$ere+ore e&& aare o+ /$e cor6ora/o o+ /$e c&b a! eearee! /o e/ e&ec/e! a! -ere a- /- re-6o-b&e o++cer- be+ore /$e reco-!ere! !--o& /-

cor6ora/e +orm.

T$- br- - /o 6e//oer- e>/ 6o/. T$e c&am gratia argumenti/$a/ $&e /$e c&b ma

$ae bee co-!ere! a cor6ora/o !r a bre+ -6e&&, -/&&, a/ /$e /me o+ /$e -///o o+ /$-

ca-e /$ /$e SE', /$e c&b a- a&rea! !--o&e! b r/e o+ a Boar! re-o&/o.

Aa, /$e arme/ && o/ carr /$e !a +or /$e 6e//oer. T$e 'or6ora/o 'o!e e-/ab&-$e-

/$e 6roce!re a! o/$er +orma& rereme/- a cor6ora/o ee!- /o +o&&o ca-e / e&ec/- /o

!--o&e a! /erma/e /- -/rc/re o&/ar& a! $ere o r$/- o+ cre!/orma 6o--b& be6re!ce!, /$-*

Sec. 118. Voluntary dissolution where no creditors are affected.-I+ !--o&/o o+ a cor6ora/o

!oe- o/ 6re!ce /$e r$/- o+ a cre!/or $a a c&am aa-/ /, /$e !--o&/o ma bee++ec/e! b maor/ o/e o+ /$e boar! o+ !rec/or- or /r-/ee- a! b a re-o&/o !& a!o6/e! b

/$e a++rma/e o/e o+ /$e -/oc@$o&!er- o a/ &ea-/ /o7/$r!-

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a! 6b&ca/o rereme/-. Sm&ar& a/ - /$e 6roo+ o+ /$e boar! member- cer/+ca/o.

#a-/&, a! mo-/ m6or/a/ o+ a&&, /$e SE' Or!er o+ D--o&/o a- eer -bm//e! a- e!ece.

"e o re-o&e $e/$er /$e !-6/e be/ee /$e re-6o!e/- a! 6e//oer- - a cor6ora/ema//er /$ /$e e>c&-e com6e/ece o+ /$e SE' /o !ec!e. I or!er /$a/ /$e comm--o ca

/a@e co;ace o+ a ca-e, /$e co/roer- m-/ 6er/a /o a o+ /$e +o&&o re&a/o-$6-* a=be/ee /$e cor6ora/o, 6ar/er-$6 or a--oca/o a! /$e 6b&c b= be/ee /$e cor6ora/o,

6ar/er-$6 or a--oca/o a! /- -/oc@$o&!er-, 6ar/er-, member-, or o++cer- c= be/ee /$ecor6ora/o, 6ar/er-$6, or a--oca/o a! /$e -/a/e a- +ar a- /- +rac$-e, 6erm/ or &ce-e /o

o6era/e - cocere! a! != amo /$e -/oc@$o&!er-, 6ar/er- or a--oca/e- /$em-e&e-. >[1]T$e

+ac/ /$a/ /$e 6ar/e- o&e! /$e co/roer- are a&& -/oc@$o&!er- or /$a/ /$e 6ar/e- o&e!are /$e -/oc@$o&!er- a! /$e cor6ora/o, !oe- o/ ece--ar& 6&ace /$e !-6/e /$ /$e &oo6 o+

r-!c/o o+ /$e SE'.>[14]3r-!c/o -$o&! be !e/erme! b co-!er o/ o& /$e -/a/-

or re&a/o-$6 o+ /$e 6ar/e- b/ a&-o /$e a/re o+ /$e e-/o /$a/ - /$e -bec/ o+ /$erco/roer-.>[15]

"e r&e /$a/ /$e 6re-e/ !-6/e - /ra7cor6ora/e c$arac/er. I /$e +r-/ 6&ace, /$e 6ar/e- $ereo&e! are o++cer- a! member- o+ /$e c&b. Re-6o!e/- c&am /o be member- o+ oo!

-/a! o+ /$e c&b /& /$e ere 6r6or/e!& -/r66e! o+ /$er member-$6 &&ea& +a-$o.)e//oer-, o /$e o/$er $a!, are /- )re-!e/ a! Vce7)re-!e/, re-6ec/e&. ore

-+ca/&, /$e 6re-e/ co+&c/ re&a/e- /o, a! +ac/ aro-e +rom, /$- re&a/o be/ee /$e

6ar/e-. T$e -bec/ o+ /$e com6&a/, ame&, /$e &ea&/ o+ /$e e>6&-o +rom member-$6 o+/$e re-6o!e/- a! /$e a&!/ o+ /$e ame!me/- /$e c&b- b7&a- are, +r/$ermore, /$

/$e 'omm--o- r-!c/o.

"e&& /o !er-core - /$e !a/e $e /$e ora& com6&a/ a- +&e! a/ /$e SE', $c$ a-

arc$ 2:, 199?. O /$a/ !a/e, /$e SE' -/&& e>erc-e! a-7!ca& +c/o- oer /$- /6e o+

-/-. I/ - a>oma/c /$a/ r-!c/o - co+erre! b /$e 'o-///o a! b /$e &a- +orce a//$e /me o+ /$e commeceme/ o+ /$e ac/o.>[1:]I 6ar/c&ar, /$e 'omm--o a- /$ere6o

em6oere!, !er Sec. 5 o+ ).D. 9027A, /o $ear a! !ec!e ca-e- o& /ra7cor6ora/e!-6/e-, /$-*

SE'. 5. I a!!/o /o /$e re&a/or a! a!!ca/e +c/o- o+ /$e Secr/e- a! E>c$ae

'omm--o oer cor6ora/o-, 6ar/er-$6- a! o/$er +orm- o+ a--oca/o re-/ere! /$ / a-

e>6re--& ra/e! !er e>-/ &a- a! !ecree-, it shall have original and e*clusive

jurisdiction to hear and decide cases involving+

> > >

b= 'o/roer-e- ar- o/ o+ /ra7cor6ora/e or 6ar/er-$6 re&a/o-, be/ee a! amo

-/oc@$o&!er-, member- or a--oca/e- be/ee a or a&& o+ /$em a! /$e cor6ora/o, 6ar/er-$6

or a--oca/o o+ $c$ /$e are /$e -/oc@$o&!er-, member- or a--oca/e-, re-6ec/e& a!be/ee -c$ cor6ora/o, 6ar/er-$6 or a--oca/o a! /$e -/a/e -o+ar a- / cocer- /$er

!!a& +rac$-e or r$/ /o e>-/ a- -c$ e//

> > >.>[1?]

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T$e eac/me/ o+ R.A. 8?99, o/$er-e @o a- /$e Secr/e- Re&a/o 'o!e, $oeer,

/ra-+erre! /$e r-!c/o /o re-o&e /ra7cor6ora/e co/roer-e- /o cor/- o+ eera&

r-!c/o or /$e a66ro6ra/e Reoa& Tra& 'or/-, /$-*

5.2. "he Commissions jurisdiction over all cases enumerated under #ection % of

residential Decree -o. (/0A is hereby transferred to the Courts of general jurisdiction orthe appropriate Regional "rial Court+Provided, /$a/ /$e S6reme 'or/ /$e e>erc-e o+ /-

a/$or/ ma !e-a/e /$e Reoa& /ra& 'or/ brac$e- /$a/ -$a&& e>erc-e r-!c/o oer/$e-e ca-e-. T$e 'omm--o -$a&& re/a r-!c/o oer 6e! ca-e- o& /ra7

cor6ora/e !-6/e- -bm//e! +or +a& re-o&/o $c$ -$o&! be re-o&e! /$ oe [18]

O A-/ 22, 2000, e --e! a re-o&/o, A.. No. 00787107S', $ere e DIRE'T > >.

>>

[19]"e a&-o --e! ao/$er re-o&/o !e-a/cer/a brac$e- o+ /$e Reoa& Tra& 'or/ /o /r a! !ec!e ca-e- +ormer& co;ab&e b /$e

SE'.>>[20]'o-ee/&, /$e ca-e a/ bar -$o&! o be re+erre! /o /$e a66ro6ra/e Reoa& Tra&'or/.

Be+ore e +a&& r/efinis/o /$e -/a/ 6e//o, $oeer, e && !-6o-e o+ /$e /o o/$er

--e- ra-e! b /$e 6e//oer-.

Fr-/ - /$e a&&ee! +a&re o+ /$e re-6o!e/- /o m6&ea! /$e c&b a- a ece--ar or !-6e-ab&e6ar/. )e//oer- co/e! /$a/ /$e ora& com6&a/ -$o&! be !-m--e! +or o/ c&! /$e

c&b a- oe o+ /$e re-6o!e/- /$ere. D-m--a& - o/ /$e reme! +or o7o!er o+ 6ar/e-.

(!er /$e R&e-, /$e reme! - /o m6&ea! /$e o76ar/, c&ame! /o be ece--ar or!-6e-ab&e, /$e ac/o, /$-*

SE'. 11.Misjoinder and non-joinder of parties.Ne/$er m-o!er or o7o!er o+ 6ar/e- -

a ro! +or !-m--a& o+ a ac/o. )ar/e- ma be !ro66e! or a!!e! b or!er o+ /$e cor/ o

mo/o o+ a 6ar/ or o /- o /a/e a/ a -/ae o+ /$e ac/o a! o -c$ /erm- a- are

-/. A c&am aa-/ a m-oe! 6ar/ ma be -eere! a! 6rocee!e! /$ -e6ara/e&.>>[21]

T$e o/$er --e - /$ rear! /o /$e a&&ee! o66re--e -b6oea- a! or!er- --e! b %ear

O++cer So&&er, 6r6or/e!& /$o/ or e>ce-- o+ a/$or/. I &$/ o+ )D 9027A- re6ea&, /$e

ee! /o r&e o /$e e-/o o+ /$e e>/e/ o+ /$e co/em6/ 6oer- o+ a SE' $ear o++cer

re&a/e /o $- a/$or/ /o --e -b6oea- a! or!er- /o 6ar/e- o&e! /ra7cor6ora/e ca-e-,or 6o/e/a& /e--e- /$ere $a- bee re!ere! aca!emc. T$e eac/me/ o+ RA 8?99 moo/e!

/$- --e a- SE' $ear o++cer-, o bere+/ o+ a 6oer /o re-o&e !-6/e-, are &@e-e

-/r66e! o+ /$er 6oer /o --e -b6oea- a! co/em6/ or!er- c!e/a& /o /$e e>erc-e o+ /$era-7!ca& 6oer-.

A/ a ra/e, / /a>e- or cre!&/ $ /$e 6e//oer- --/ ra- /$- --e /$e ca-e a/ bar.

T$e -o7ca&&e! o66re--e -b6oea- a! or!er- ere o/ !rec/e! /o /$em. T$e ere --e! /o

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/$e c&b- -ecre/ar, )r/a E-cobar, !rec/ $er /o a66ear be+ore /$e 'omm--o a! br

cer/a !ocme/- o+ /$e c&b, /$a/ ere -66o-e!& !er $er 6o--e--o or co/ro&. I/ - obo-

/$a/ /$e 6e//oer- are o/ /$e 6ro6er 6ar/e- /o a--a& /$e o66re--ee-- o+ /$e -b6oea- or /$eor!er-, a! m6 /$er a&!/. E&eme/ar - /$e 6rc6&e /$a/ o& /$o-e $o e>6ec/ /o be

a!er-e& a++ec/e! b a or!er ca com6&a aa-/ /. I/ - /$er a!!re--ee, )r/a E-cobar, $o

ca a--a& /$er a&&ee! o66re--ee--. )e//oer- 6ro/e-/a/o $a- /$ere+ore o &ea& &e /o -/a!o.

1- V1$2 23$R$45, +! o coe/ rea-o /o !-/rb /$e a--a&e! Dec-o, /$e 6e//o -

DENIED. I co+orm/ /$ R.A. 8?99, SE' 'a-e No. 079?75598, e//&e! De&+o Rae& a!

%e&e!a Rae& . Teo!oro B. Ve-aa- a! "&+re! D. A-- - re+erre! /o /$e Reoa& Tra& 'or/o+ /$e N/$ 3!ca& Reo, Brac$ >>[22]&oca/e! A-a !e& Nor/e

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i[1]Entitled Delfno Raniel and Helenda Raniel v. Teodoro B. Vesagas and Wilred D. Asis.

ii[2]Petition or Review on ertiorari! ". 1#$ Rollo! ". 2%.

iii[&]Ibid.! ". 1'$ Ibid.! ". &&.

iv[(])rder! Anne* D! Petition or Review! A+,.R. -o. %11'! ". &$ .A. Rollo! ". .

v[%]/E. 20.Admissions of a party. Te at! delaration or o3ission o a "art4 as to

relevant at 3a4 5e given in evidene against i3. 6/etion 20! R7le 1! R7les o

o7rt.8

vi[0]/E. (.Judicial admissions.An ad3ission! ver5al or written! 3ade 54 a "art4 in te

o7rse o te "roeedings in te sa3e ase! does not re97ire "roo. Te ad3ission 3a4

5e ontradited onl4 54 sowing tat it was 3ade tro7g "al"a5le 3ista:e or tat no

s7 ad3ission was 3ade. 6/etion (! R7le 12! R7les o o7rt.8

vii[;]Attaed as an anne* o te erein "etition and as anne* o teir "etition fled wito7rt o A""eals.

viii[']

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**[2#]A.

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21. vesagas v CA