Title
Cebu Metro Pharmacy, Inc. vs. Euro-Med Laboratories, Inc.
Case
G.R. No. 164757
Decision Date
Oct 18, 2010
A dispute over payment for intravenous fluids products leads to a legal battle between Cebu Metro Pharmacy and Euro-Med Laboratories, with the Supreme Court ruling that the President and Manager of a corporation has the authority to sign the verification and certification of non-forum shopping without a written authority from the board.
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Case Digest (G.R. No. 164757)

Facts:

  • The dispute is between Cebu Metro Pharmacy, Inc. (petitioner) and Euro-Med Laboratories Philippines, Inc. (respondent) over payment for intravenous fluids.
  • On February 19, 2001, Euro-Med filed a Complaint for Sum of Money against Cebu Metro before the Municipal Trial Court in Cities (MTCC) of Cebu City.
  • Euro-Med sought to recover P120,219.88 plus interest, liquidated damages, and attorney's fees for products purchased by Cebu Metro.
  • Cebu Metro admitted the obligation but raised defenses, including unauthorized contract claims and laches.
  • Cebu Metro alleged fraud by Euro-Med's branch and salesman in collusion with its former president and manager, Manolito Martinez.
  • The MTCC ruled in favor of Euro-Med on May 6, 2003, ordering Cebu Metro to pay P117,219.88 plus interest, attorney's fees, and litigation expenses.
  • Cebu Metro's appeal to the Regional Trial Court (RTC) was dismissed on April 1, 2004, affirming the MTCC's decision.
  • Cebu Metro filed a Petition for Review with the Court of Appeals (CA), which was dismissed due to improper verification and certification of non-forum shopping.
  • The CA denied Cebu Metro's Motion for Reconsideration on June 30, 2004, despite the inclusion of a Secretary's Certificate.
  • Cebu Metro filed a Petition for Review on Certiorari with the Supreme Court.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court granted the petition, reversing and setting aside the CA's resolutions dated May 6, 2004, and June 30, 2004.
  • ...(Unlock)

Ratio:

  • The Supreme Court held that the President and Manager of a corporation, such as Carmel T. Albao, has the authority to sign the verification and certification of non-forum shopping without needing a written authority from the board.
  • The Court cited previous rulings recognizing the ...continue reading

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