Case Digest (G.R. No. 159831)
Facts:
In 1966, Manotok Brothers, Inc., represented by its President Rufino Manotok, appointed Salvador Saligumba as its exclusive agent to negotiate the sale of a parcel of land and building leased by the City of Manila for not less than ₱425,000, with a five percent commission upon consummation. Through successive letters dated July 5 and November 16, 1967, the company extended his authority until May 14, 1968. On April 26, 1968—while Saligumba’s mandate was still in force—the Municipal Board passed Ordinance No. 6603 appropriating ₱410,816 for the purchase, and the Mayor approved it on May 17, 1968. The deed of sale was executed on January 14, 1969, and full payment was completed on April 8, 1969, yet Saligumba never received his commission. On June 29, 1969 he sued Manotok Brothers in the Court of First Instance of Manila (Civil Case No. 76997), claiming ₱20,554.50 plus ₱4,000 in attorneys’ fees. The trial court ruled in his favor; the Court of Appeals affirmed in 1987; and this C
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Case Digest (G.R. No. 159831)
Facts:
- Contractual Engagement and Sale of Property
- Manotok Brothers, Inc. (“Petitioner”) owned a parcel of land and building in Sampaloc, Manila, formerly leased by the City of Manila for Claro M. Recto High School.
- By letter dated July 5, 1966, Petitioner appointed Salvador Saligumba (“Private Respondent”) as its exclusive agent to negotiate the sale of the property for not less than ₱425,000, with a 5% commission upon consummation.
- Petitioner granted successive extensions of Private Respondent’s authority by letters dated March 4, 1967 (120 days), June 26, 1967 (120 days), and November 16, 1967 (180 days), reducing the minimum price to ₱410,000.
- On April 26, 1968, Manila’s Municipal Board passed Ordinance No. 6603 appropriating ₱410,816 for the purchase; the Mayor signed it on May 17, 1968, three days after the last authority expired.
- The deed of sale was executed January 14, 1969; full payment (₱200,000 on execution and ₱210,816 by check) was completed April 8, 1969. Petitioner refused to pay the agreed commission of ₱20,554.50.
- Litigation and Procedural History
- June 29, 1969 – Private Respondent filed a complaint in the RTC (Branch VI, Manila) for his commission; Petitioner counterclaimed for ₱4,000 attorneys’ fees and moral damages.
- RTC Decision – Ordered Petitioner to pay ₱20,540 commission plus legal interest from filing and ₱4,000 attorneys’ fees.
- Court of Appeals (CA) – Affirmed the RTC decision; denied Petitioner’s motion for reconsideration on June 22, 1987.
- SC G.R. No. 78898 – Petitioner filed a petition for review on certiorari in August 1987; the SC issued resolutions (Aug 31, 1987; Mar 13, 1989) requiring service on Private Respondent.
- May 3, 1989 – SC dismissed G.R. No. 78898 for failure to locate Private Respondent; judgment became final and executory.
- January 9, 1990 – Private Respondent moved to execute the SC judgment.
- G.R. No. 94753 – Petitioner sought relief from dismissal, alleged due process deprivation, and prayed for preliminary injunction.
- October 1, 1990 – SC admitted the amended petition, set aside the May 3, 1989 entry of judgment, and issued a temporary restraining order.
Issues:
- Substantive Issue
- Whether Private Respondent is entitled to the 5% commission despite the expiration of his authority prior to formal execution of the deed of sale.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)