Case Digest (G.R. No. 164703)
Facts:
Allan C. Go, doing business under the name and style "ACG Express Liner" v. Mortimer F. Cordero, G.R. No. 164703; and Mortimer F. Cordero v. Allan C. Go, doing business under the name and style "ACG Express Liner," Felipe M. Landicho and Vincent D. Tecson, G.R. No. 164747, May 04, 2010, First Division, Villarama, Jr., J., writing for the Court.
In 1996–1997 Mortimer F. Cordero, vice‑president of Pamana Marketing Corporation, became the exclusive Philippine distributor of Aluminium Fast Ferries Australia (AFFA) through Tony Robinson (AFFA’s managing director). Acting in that capacity, Cordero negotiated the sale of SEACAT 25 catamarans and, on August 7, 1997, closed a transaction for one SEACAT 25 with Allan C. Go (ACG Express Liner) under a Shipbuilding Contract (No. 7825). The agreed commission for the distributor was 22.43% of the vessel price (US$328,742 per vessel), payable in staggered progress payments; partial commission payments were later remitted to Cordero.
After initial close cooperation and travel to Australia (expenses borne by Cordero), Cordero learned that Go was dealing directly with Robinson regarding another (second) vessel and that communications to Cordero had ceased. Cordero sent a demand letter (June 24, 1998) protesting the bypassing of his distributorship; AFFA’s lawyers claimed Cordero’s appointment was for one transaction only and revoked the offer. Efforts to settle (including a June 29, 1998 meeting with Go’s lawyers Landicho and Tecson) produced promises but no payment; Landicho and Tecson continued to receive “cuts” from Cordero’s commissions according to Cordero. Cordero also filed a Bureau of Customs complaint alleging undervaluation.
On August 21, 1998 Cordero filed Civil Case No. 98‑35332 against Robinson, Go, Landicho and Tecson for damages, unpaid commissions (including balance for the first vessel and commission for an alleged second vessel), and consequential, moral, exemplary damages and attorney’s fees. Robinson moved to dismiss for lack of jurisdiction and failure to state a cause of action; the trial court denied the motion and later declared Robinson in default for failing to answer. Go, Landicho and Tecson’s motion to dismiss was likewise denied; they answered and blamed Cordero for lack of cooperation and alleged other contractual developments.
Pre‑trial conference defaults by Go, Landicho and Tecson led the trial court to allow Cordero to present his evidence ex parte. The trial court found for Cordero and rendered a sizable money judgment (May 31, 2000) awarding actual, moral, exemplary damages and attorney’s fees against all defendants jointly and severally. Motions for new trial were denied and issues over execution pending appeal produced collateral certiorari litigation in the Court of Appeals (CA), which issued temporary relief as to execution orders. On March 16, 2004 the CA in CA‑G.R. CV No. 69113 affirmed the trial court in material respects but limited some awards: it awarded the unpaid commission balance for the first vessel (US$31,522.09, converted to pesos), disallowed claimed out‑of‑pocket expenses (P800,000), and reduced moral, exemplary damages and attorney’s fees to P500,000; P300,000; and P50,000, respectively; it fixed interest at 6% from filing with escalation to 12% upon finality. By Resolution of July 22, 2004 the CA clarified interest periods.
...(Subscriber-Only)Issues:
- Was petitioner Mortimer F. Cordero the real party‑in‑interest entitled to prosecute the action?
- May respondents Allan C. Go, Tony Robinson, Felipe Landicho and Vincent Tecson be held liable for damages for violating Cordero’s exclusive distributorship and for unpaid commissions (including the balance on the first vessel and alleged second‑vessel commissions), a...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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