Case Digest (G.R. No. L-18173)
Facts:
The case Bisaya Land Transportation Company Inc. vs. Miguel Cuenco revolves around a petition for quo warranto filed by the Solicitor General on behalf of the Republic of the Philippines in 1959. The petition sought the dissolution of the Bisaya Land Transportation Company, alleging that the corporation had committed multiple violations of law, including acts that amounted to a forfeiture of its franchise rights. The case was registered as special civil case No. 39766 in the Court of First Instance of Manila. The corporation's officers, including Miguel Cuenco, Manuel Cuenco, Lourdes Cuenco, Jose P. Velez, Federico A. Reyes, and Jesus P. Velez, were named as respondents. The petition detailed nine separate causes of action, citing fraudulent activities, mismanagement, and actions beyond the corporation's powers.
Miguel Cuenco, in his individual capacity, admitted to the corporation's violations but denied any personal involvement. He joined the petition for dis...
Case Digest (G.R. No. L-18173)
Facts:
Background of the Case:
- In 1959, the Solicitor General, representing the Republic of the Philippines, filed a petition for quo warranto against Bisaya Land Transportation Co., Inc. (BLTCI) and its officers, including Miguel Cuenco, seeking the corporation's dissolution. The petition alleged multiple violations of law, corporate mismanagement, and fraudulent activities.
Cross-Claim by Miguel Cuenco:
- Miguel Cuenco, a stockholder and director of BLTCI, filed an individual answer admitting the corporation's violations but denied his personal involvement. He joined the petition for dissolution and filed a cross-claim against other directors, seeking reimbursement of misappropriated funds.
Notice of Lis Pendens:
- On August 31, 1959, Miguel Cuenco filed a notice of lis pendens with the Register of Deeds for Cebu, covering BLTCI's real properties. This was done to protect his cross-claim.
Petition to Cancel Lis Pendens:
- On November 17, 1959, BLTCI filed a petition in the Court of First Instance of Cebu to cancel the notice of lis pendens, arguing it was irregular and unwarranted.
Trial Court Decision:
- The trial court, presided by Judge Jose S. Rodriguez, ruled in favor of BLTCI, ordering the cancellation of the lis pendens. Miguel Cuenco appealed this decision.
Issue:
- Whether the notice of lis pendens filed by Miguel Cuenco was proper and justified under the circumstances.
- Whether the petition for quo warranto and the cross-claim affected the title or right of possession of BLTCI's real properties, thereby justifying the lis pendens.
Ruling:
The Supreme Court affirmed the trial court's decision, holding that the notice of lis pendens was improper and unwarranted. The Court ordered the cancellation of the lis pendens.
Ratio:
- (Unlock)