Case Digest (G.R. No. L-48194)
Facts:
In 1966 private respondent Leonardo Tiro, holder of an ordinary timber license for 2,535 hectares in Medina, Misamis Oriental, executed a Deed of Assignment dated February 15, 1966 in favor of Jose M. Javier and Estrella F. Javier for P120,000, and on February 28, 1966 the parties executed an Agreement concerning a pending application for an additional 2,000-hectare concession for which P30,000 was to be paid. The parties acted on the deed by operating and consolidating the concessions into a working unit and later incorporated the North Mindanao Timber Corporation.Tiro sued petitioners on July 16, 1968 for unpaid balances; the trial court dismissed his complaint and awarded petitioners P33,161.85, the Court of Appeals reversed on March 6, 1978, and the Supreme Court granted certiorari, excused a one-day delay in filing motions, and resolved the case on the merits.
Issues:
- Is the Deed of Assignment dated February 15, 1966 void for lack of consideration?
- Is the Agreement dat
Case Digest (G.R. No. L-48194)
Facts:
- Background of the dispute
- JOSE M. JAVIER AND ESTRELLA F. JAVIER, PETITIONERS were assignees under a Deed of Assignment dated February 15, 1966 from LEONARDO A. TIRO, an ordinary timber license holder covering 2,535 hectares in Medina, Misamis Oriental.
- The Deed of Assignment recited a transfer of shares of stocks in the TIMBERWEALTH CORPORATION in the total amount of P120,000, with P20,000 paid on signing and the balance of P100,000 to be paid at P10,000 per shipment of export logs.
- At the time of the Deed, TIMBERWEALTH CORPORATION did not yet exist and private respondent had a pending application dated October 21, 1965 for an additional forest concession of 2,000 hectares adjoining his licensed area.
- On February 28, 1966, the parties executed an Agreement by which LEONARDO TIRO agreed to transfer whatever rights he might acquire over the additional area to TIMBERWEALTH CORPORATION, and JOSE M. JAVIER AND ESTRELLA F. JAVIER, PETITIONERS undertook to pay P30,000 upon approval and transfer, to form part of paid-up capital.
- On November 18, 1966, the Acting Director of Forestry renewed the concession up to May 12, 1967 but directed consolidation into a 20,000-hectare contiguous working unit or face non-renewal pursuant to the Presidential directive of May 13, 1966.
- In response, petitioners and other licensees executed a Forest Consolidation Agreement on April 10, 1967, approved by the Director of Forestry on May 10, 1967, and the working unit was later incorporated as North Mindanao Timber Corporation with petitioners as incorporators.
- Petitioners thereafter assumed operation of the logging concessions and prepared a statement of advances showing P55,186.39 advanced to L.A. Tiro to be applied to succeeding shipments.
- Trial-level and appellate proceedings
- On July 16, 1968, LEONARDO TIRO filed suit against petitioners for P83,138.15 with 6% interest from April 10, 1967 until full payment, plus P12,000 attorney’s fees and costs, for failure to pay the balance under the two contracts.
- On September 23, 1968, JOSE M. JAVIER AND ESTRELLA F. JAVIER, PETITIONERS admitted execution of the contracts but pleaded nullity for failure of respondent to perform and counterclaimed for return of P55,586.00 alleged received under a management agreement.
- The trial court dismissed LEONARDO TIRO’s complaint and ordered him to pay petitioners P33,161.85 with legal interest at 6% from filing of the answer until complete payment.
- LEONARDO TIRO appealed to the Court of Appeals, which reversed and ordered defendants-appellees (petitioners), jointly and solidarily, to pay plaintiff-appellant P79,338.15 with legal ...(Subscriber-Only)
Issues:
- Procedural issue presented
- Whether the one-day delay in filing the motion for extension of time and hence the motion for reconsideration before the Court of Appeals was excusable so as to permit review by the Supreme Court.
- Substantive issues presented
- Whether the Deed of Assignment dated February 15, 1966 was null and void for lack of consideration because it purported to transfer shares in a non-existent TIMBERWEALTH CORPORATION.
- Whether the Agreement dated February 28, 1966 was void for failure of the suspensive condition (approval by the Bureau of Forestry of the additional conce...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)