Case Digest (G.R. No. L-29116)
Facts:
- Juan B. Espe, a non-agricultural producer, purchased shares of stock in the Central Cooperative Exchange, Inc., a farmers' marketing cooperative.
- Espe filed a complaint seeking the transfer of the stock certificate to his name.
- The Court of First Instance of Bulacan dismissed Espe's complaint.
- The case was certified to the Supreme Court because only questions of law were involved.
- Espe acquired the shares of stock through an execution sale after obtaining a judgment against Bacnotan (La Union) Facoma, the previous owner of the shares.
Issue:
- (Unlock)
Ruling:
- The Supreme Court affirmed the decision of the lower court, dismissing Espe's complaint.
- Espe, being a non-agricultural producer, is not ent...(Unlock)
Ratio:
- The court based its ruling on Section 31 of Act 3426, also known as the Cooperative Marketing Law.
- Section 31 prohibits the transfer of common stock of a cooperative association to persons not engaged in the production of agricultural products handled by the association.
- The articles of incorporation and by-laws of the Central Cooperative Exchange, Inc. also contain provisions that restrict stock ownership to farmers' marketing cooperatives.
- Espe did not possess the qualification of being a producer of agricultural products, therefore he was not eligible to hold the shares of stock. ...continue reading
Case Digest (G.R. No. L-29116)
Facts:
The case of "Espe v. Central Cooperative Exchange, Inc." was decided by the Supreme Court of the Philippines on May 29, 1970. The plaintiff-appellant, Juan B. Espe, filed a complaint seeking the transfer of a certificate of stock of the Central Cooperative Exchange, Inc. The defendant-appellee is the Central Cooperative Exchange, Inc. The case was certified to the Supreme Court by the Court of Appeals because only questions of law were involved.
The Bacnotan (La Union) Facoma owned 607 shares of stock in the defendant corporation. In a separate case, Juan B. Espe obtained a judgment for a sum of money against the Bacnotan Facoma, and the shares of stock were levied upon and acquired by Espe as the highest bidder in the execution sale. Espe then wrote to the corporation, informing them of his acquisition of the shares of stock and requesting their transfer to his name in the corporation's books. The corporation denied the request, stating that Espe did not have the qualifications necessary for ownership of stock in the corporation as prescribed in its articles of incorporation and by-laws. Espe then filed a ...