Case Digest (G.R. No. L-9506)
Facts:
Sy Suan and Price Incorporated v. Pablo L. Regala, G.R. No. L-9506, June 30, 1959, the Supreme Court (En Banc), Endencia, J., writing for the Court.
Petitioners Sy Suan and Price Incorporated sought review of a Court of Appeals decision that adjudged respondent Pablo L. Regala the sum of P6,998.85, with legal interest, plus P500 attorney's fees and costs, as the unpaid balance allegedly due under a verbal agreement to pay Regala 10% of the value of import licenses he might obtain from the Import Control Commission for industrial starch used in candy manufacture.
The Court of Appeals found the following facts: on April 11, 1953 Sy Suan (then president and principal shareholder of Price Incorporated) executed a special power of attorney in favor of Regala to prosecute certain pending Import Control Office applications (filed April 6, 1953) for industrial starch in the name of Price Incorporated. Pursuant to that authority Regala pursued the applications, conferring with Import Control officials, and on or about May 19, 1953 licenses were issued — one license being reduced in amount to $11,888.50. Prior to executing the power of attorney, Regala and Sy Suan allegedly agreed verbally that Regala would be compensated ten per cent (10%) of the total value of approved applications; upon release of the licenses defendants paid Regala P3,000 on account.
Petitioners maintained that the alleged 10% oral contract is contrary to public policy because it increases production costs (thereby burdening consumers), encourages siphoning of capital to intermediaries (discouraging new industries), and invites corruption in licensing agencies. Respondent argued contracts are enforceable unless clearly contrary to public policy and that the contract here should be upheld.
The Court of Appeals had enforced the verbal 10% arrangement and awarded the stated sums. Petitioners appealed to the Supreme Court by certiorari. The Supreme Court reviewed the statutory scheme governing import licensing and foreign-exchange allocation, ...(Subscriber-Only)
Issues:
- Is the verbal agreement for a 10% commission on import licenses void as being contrary to public policy?...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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