G.R. No. 198436 - Pioneer Insurance Surety Corp. vs. Morning Star Travel and Tours, Inc.

Pioneer Insurance & Surety Corporation (“Pioneer”) versus Morning Star Travel & Tours, Inc. (“Morning Star”) and its directors/officers (Estelita Co Wong, Benny H. Wong, Arsenio Chua, Sonny Chua, Wong Yan Tak).
Pioneer paid International Air Transport Association (“IATA”) P100,479,171.59 and US$457,834.14 under a credit insurance policy covering Morning Star’s overdue remittances for airline ticket sales.

Morning Star accredited as IATA travel agent under a Passenger Sales Agency Agreement; remittances channeled through the IATA’s Billing and Settlement Plan; collected fares held in trust for airlines.
IATA obtained from Pioneer a credit insurance policy (Nov 1, 2001–Dec 31, 2002; renewed Jan 1–Dec 31, 2003); Morning Star’s president signed to indemnify Pioneer for claims.

Morning Star failed to remit December 16–31, 2002 and January 1–20, 2003 billing (P49,051,641.80 and US$325,865.35; later P109,728,051.00 and US$457,834.14). IATA declared default; Pioneer paid IATA then demanded reimbursement.
IATA executed Release and Subrogation Receipt in Pioneer’s favor (Dec 23, 2003). Pioneer filed collection suit on Nov 10, 2005.

Trial court declared defendants in default; Pioneer presented ex parte evidence; rendered judgment (Nov 9, 2007) holding all respondents jointly and severally liable for P100,479,171.59 and US$457,834.14, plus 12% interest, attorney’s fees, exemplary damages, litigation expenses and costs.
Court of Appeals (Feb 28, 2011) affirmed with modification: only Morning Star liable; deleted individual liability, exemplary damages, attorney’s fees. Reconsideration denied.
Pioneer filed Rule 45 petition to the Supreme Court, raising both questions of law and fact under exceptions.

Whether this Petition for Review may raise questions of fact under the “patent misappreciation of facts” exception.
Whether the individual respondents may be held solidarily liable with Morning Star by piercing the corporate veil for gross negligence, bad faith or fraud under Corporation Code § 31 and jurisprudential badges of fraud.