Case Digest (G.R. No. 119020)
Facts:
International Express Travel & Tour Services, Inc. v. Hon. Court of Appeals, Henri Kahn, Philippine Football Federation, G.R. No. 119020, October 19, 2000, First Division, Kapunan, J., writing for the Court.On June 30, 1989, petitioner International Express Travel and Tour Services, Inc. (petitioner) offered travel-agency services to the Philippine Football Federation (the Federation) through its president, private respondent Henri Kahn, and the offer was accepted. Petitioner procured airline tickets for the Federation’s athletes and officials for various trips (including the SEA Games in Kuala Lumpur), costing a total of P449,654.83. The Federation made two partial payments in September 1989 totaling P176,467.50; petitioner sent a demand letter on October 4, 1989, for P265,894.33. On October 30, 1989, Project Gintong Alay paid P31,603.00; on December 27, 1989, Kahn issued a personal check for P50,000 as partial payment. No further payments were made despite repeated demands.
Petitioner filed suit in the Regional Trial Court (RTC) of Manila, suing Henri Kahn personally and in his capacity as President of the Federation, and impleading the Federation alternatively; petitioner sought to hold Kahn personally liable for the unpaid balance on the theory that he guaranteed the obligation. Kahn answered, admitting the Federation’s indebtedness (P207,524.20) but denying personal liability, averring he acted only as the Federation’s agent and that the Federation has a separate juridical personality. The Federation failed to answer and was declared in default.
The RTC (Manila, Branch 35) rendered judgment for petitioner, holding Kahn personally liable because neither party proved the Federation’s corporate existence and because an unincorporated association’s officers who contract for it are personally liable; the RTC ordered Kahn to pay P207,524.20 plus legal interest from July 5, 1990, and attorney’s fees, and dismissed the complaint against the Federation.
Only Henri Kahn appealed to the Court of Appeals (CA). On December 21, 1994, the CA reversed and set aside the RTC judgment and rendered judgment dismissing the complaint against Kahn, reasoning that the Federation had juridical existence (citing R.A. No. 3135 and P.D. No. 604) and that petitioner failed to prove Kahn guaranteed the Federation’s obligation. Petitioner’s motion for reconsideration and its alternative prayer tha...(Subscriber-Only)
Issues:
- Did the Court of Appeals err in recognizing the Philippine Football Federation as a juridical entity absent proof of statutory recognition or accreditation under the enabling laws?
- Did the Court of Appeals err in not holding Henri Kahn personally liable for the Federation’s unpaid obligation given that the Federation lacked juridical personality?
- Was the Court of Appeals required to declare the Federation liable for the obligation where peti...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
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Doctrine:
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