Case Digest (G.R. No. 218040) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Naoaki Hirakawa v. Lopzcom Realty Corporation and Atty. Gari M. Tiongco (G.R. No. 213230, December 5, 2019), the petitioner Hirakawa, a Japanese national, claimed he acquired by assignment four out of nine postdated Westmont Bank checks originally issued by respondents on December 28, 1995 as payment for the sale of the 92-hectare Windfields Subdivision in Consolacion, Cebu City. Respondent Lopzcom, a realty developer, and its president, Atty. Gari Tiongco, consented to the assignment of checks totaling ₱65,000,000.00. After encashing the first check, Hirakawa asked respondents to replace the remaining Westmont checks with three PDCP Development Bank checks in his name. Respondents issued these checks, but two were dishonored due to account closure. In February 1999, they purportedly novated their ₱40,000,000.00 debt by assigning golf course shares, yet no certificates were delivered. Respondents then issued two PNB postdated checks for ₱20,000,000.00 each, both unfunded when Case Digest (G.R. No. 218040) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Background
- Lopzcom Realty Corporation is a domestic realty-development corporation; Atty. Gari M. Tiongco is its President and Chairman.
- Naoaki Hirakawa, a Japanese national, is represented by his agent, Erica M. Shibamura.
- Deed of Sale and Assignment of Checks
- On December 28, 1995, Takezo Sakai sold Windfields Subdivision (92 hectares in Consolacion, Cebu) to Lopzcom for ₱100,000,000.00, paid by nine Westmont Bank postdated checks.
- On September 30, 1996, Sakai assigned four of those checks (totaling ₱65,000,000.00) to Hirakawa; Lopzcom and Tiongco were informed and agreed to the assignment.
- Replacement and Dishonor of Checks
- After encashment of the first check, Hirakawa requested replacement of the remaining Westmont checks in his name; respondents issued three PDCP Development Bank postdated checks drawn on Tiongco’s personal account.
- The PDCP check due October 30, 1997 was deferred and later paid with 18% annual interest; the October 30, 1998 and October 30, 1999 checks were dishonored for “account closed.”
- Deed of Assignment of Golf Shares and Further Defaults
- On February 9, 1999, respondents assigned shares in a proposed golf-course joint venture (valued at ₱40,000,000.00) as full payment of the remaining obligation; no shares were ever issued to Hirakawa.
- Hirakawa discovered the non-development in 2002; respondents then issued two PNB postdated checks (₱20,000,000.00 each) due October 2004 and October 2005, both of which remained unfunded despite extensions.
- Demand, Filing of Complaint, and Trial Court Proceedings
- On March 22, 2010, Hirakawa served a final demand; as of December 2009, respondents’ indebtedness was ₱114,027,812.22 (inclusive of interest).
- On June 22, 2010, he sued for breach of contract and attachment; the RTC initially granted a writ of preliminary attachment, later discharged it upon respondents’ counter-bond.
- Respondents moved to dismiss for lack of cause of action and legal capacity; the RTC denied the motion (May 15 and August 28, 2012).
- Court of Appeals Ruling and SC Petition
- On November 19, 2013, the CA, via Rule 65 certiorari, reversed the RTC and dismissed the complaint for want of cause of action; its July 8, 2014 resolution denied motions for reconsideration.
- Hirakawa petitioned the Supreme Court, arguing the CA erred in dismissing a collection suit mis-captioned as breach of contract.
Issues:
- Did the Court of Appeals gravely err in dismissing Hirakawa’s complaint for alleged lack of cause of action against respondents?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)