Title
Gozun vs. Mercado
Case
G.R. No. 167812
Decision Date
Dec 19, 2006
Dispute over unpaid campaign materials and cash advance in 1995 Pampanga elections; Supreme Court ruled respondent liable for P924,906 balance.

Case Digest (G.R. No. 167812)
Expanded Legal Reasoning Model

Facts:

  • Background
    • In the 1995 Pampanga gubernatorial race, petitioner Jesus M. Gozun, owner of JMG Publishing House, submitted draft samples and price quotations for campaign materials to respondent Jose Teofilo T. Mercado.
    • Respondent’s wife allegedly approved the quotation, prompting petitioner to print posters, leaflets, sample ballots, poll-watcher IDs, and stickers.
  • Production and Delivery
    • Due to urgency, petitioner subcontracted portions of the work to Metro Angeles Printing and St. Joseph Printing Press.
    • Petitioner delivered all materials to respondent’s campaign headquarters in San Fernando, Pampanga.
  • Cash Advance and Account
    • On March 31, 1995, respondent’s sister-in-law Lilian Soriano obtained P253,000 “cash advance” from petitioner for poll-watcher allowances, acknowledged in petitioner’s diary.
    • Petitioner later issued a Statement of Account totaling P2,177,906 (JMG Publishing House: P640,310; Metro Angeles: P837,696; St. Joseph: P446,900; cash advance: P253,000).
    • Respondent’s wife paid P1,000,000; the remaining P1,177,906 remained unpaid despite demands.
  • Proceedings Below
    • Petitioner filed suit on November 25, 1998 for P1,177,906 plus interest and attorneys’ fees.
    • Respondent denied contracting with petitioner, asserting materials were donations and Lilian lacked authority for the cash advance.
    • The Regional Trial Court rendered judgment for petitioner (P1,177,906 + 12% interest + P50,000 attorneys’ fees).
    • The Court of Appeals reversed, dismissing the complaint for lack of cause of action:
      • No proof Lilian was authorized by respondent (Art. 1317, Civil Code).
      • Metro Angeles and St. Joseph presses not impleaded as real parties in interest.
      • Net claim of JMG Publishing House was already satisfied by the P1,000,000 payment.

Issues:

  • Whether Lilian Soriano had actual or apparent authority to obtain a P253,000 cash advance on behalf of respondent.
  • Whether petitioner, without impleading Metro Angeles Printing and St. Joseph Printing Press, could recover the amounts due those subcontractors.
  • Whether petitioner is the real party in interest entitled to recover the total cost of campaign materials.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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