Title
Cebu Country Club, Inc. vs. Elizagaque
Case
G.R. No. 160273
Decision Date
Jan 18, 2008
Cebu Country Club directors disapproved a proprietary membership application in bad faith, leading to a damages claim. Courts ruled against them, reducing awarded amounts.

Case Digest (G.R. No. 160273)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Cebu Country Club, Inc. (CCCI) is a non-stock, non-profit private membership club in Cebu City. Petitioners are members of its Board of Directors.
    • Ricardo F. Elizagaque was designated in 1987 as a special non-proprietary member by San Miguel Corporation. In 1996, he applied for proprietary membership, secured endorsements, purchased a proprietary share, and received Certificate No. 1446.
  • Procedural History
    • The CCCI Board deferred action on Elizagaque’s application in April and May 1997. At the July 30, 1997 meeting, one black ball blocked unanimous approval; on August 1, 1997, the Secretary notified him of disapproval. Elizagaque’s letters of reconsideration in August, October, and November 1997 went unanswered.
    • On December 23, 1998, Elizagaque sued in RTC Pasig (Civil Case No. 67190) for damages. On February 14, 2001, the RTC awarded P2.34 M actual, P5 M moral, P1 M exemplary damages, P1 M attorney’s fees, and P80 000 litigation expenses.
    • The Court of Appeals, in its January 31, 2003 Decision, affirmed with modification: P2 M moral, P1 M exemplary damages, P500 000 attorney’s fees, P50 000 litigation expenses. Motions for reconsideration were denied on October 2, 2003. Petitioners filed this Rule 45 petition.

Issues:

  • Whether petitioners, in disapproving Elizagaque’s application for proprietary membership, acted in bad faith or fraud, thus incurring liability for damages.
  • Whether petitioners can be held jointly and severally liable.
  • Whether the amounts awarded for moral, exemplary damages, attorney’s fees, and litigation expenses are excessive or proper.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

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