Case Digest (G.R. No. 212050)
Facts:
In Civil Case No. 02-1423 before the Regional Trial Court of Makati, Branch 134, Star City Pty Limited (SCPL), an Australian corporation operating the Star City Casino in Sydney, filed on November 25, 2002 through its attorney-in-fact, Jimeno, Jalandoni & Cope Law Offices, a complaint for collection of sum of money with prayer for preliminary attachment against casino patron Quintin Artacho Llorente and Equitable PCI Bank (EPCIB). SCPL alleged that on July 12, 2000 Llorente negotiated two bank drafts drawn by EPCIB (Nos. 034967 and 034968) worth US $150,000 each, in order to participate in its Premium Programme entitling him to a 1% turnover rebate and a 0.10% expense rebate. SCPL verified with EPCIB that the drafts were issued on clear funds and credited Llorente’s front-money account with US $300,000. On August 1, 2000 it received notice of a stop payment order, and despite several demands (the last on August 22, 2002), Llorente refused payment. SCPL secured a writ of pre
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Case Digest (G.R. No. 212050)
Facts:
- Parties and Origin of Suit
- Star City Pty Limited (SCPL), an Australian corporation not doing business in the Philippines, filed on November 25, 2002 through its Philippine attorney-in-fact a complaint for collection of sum of money with prayer for preliminary attachment against Quintin A. Llorente (a casino patron) and Equitable PCI Bank (EPCIB, now BDO Unibank).
- SCPL alleged that Llorente maintained a “front money” patron account at its Sydney casino and, on July 12, 2000, negotiated two EPCIB bank drafts (Nos. 034967 & 034968) worth US$150,000.00 each (total US$300,000.00) to “buy in” under SCPL’s Premium Programme (1% rebate on turnover, 0.1% rebate on expenses).
- Trial Proceedings and Judgment
- SCPL credited Llorente’s account upon confirmation by EPCIB that the drafts were issued on clear funds. SCPL deposited the drafts abroad but later received notice of a “Stop Payment Order” by Llorente, prompting repeated demands (last on August 22, 2002), all refused.
- On January 28, 2003, RTC Branch 134, Makati City, issued a writ of preliminary attachment. After trial, on April 16, 2009, it held Llorente (as indorser) and EPCIB (as drawer) solidarily liable under the Negotiable Instruments Law for US$300,000.00 plus 5% attorney’s fees and costs; denied their counterclaims and EPCIB’s cross-claim. Both defendants appealed.
Issues:
- G.R. No. 212050 (Llorente’s Petition)
- Did the CA err in affirming the RTC’s decision despite lack of subject-matter jurisdiction?
- Did the CA err in holding that SCPL has capacity to sue under the “isolated transaction rule”?
- Did appointment of JJC Law as SCPL’s attorney-in-fact violate Section 69 of the Corporation Code?
- G.R. No. 212216 (SCPL’s Petition)
- Did the CA err in absolving EPCIB from liability under the RTC decision?
- Did the CA ignore applicable law and unproven evidence in so doing?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)