Title
Villanueva vs. Coca-Cola Bottlers Phils., Inc.
Case
G.R. No. 264746
Decision Date
Aug 7, 2024
Coca-Cola sought to collect unpaid debts from Villanueva, citing a dealership contract. The Court confirmed her liability despite her claims of severing ties with the business since her name was registered and she operated it.

Case Digest (G.R. No. 264746)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Petitioner Marcelina Villanueva, doing business under the name "Vedge Trading," is sued by respondent Coca-Cola Bottlers Philippines, Inc. (Coca-Cola) for collection of unpaid products.
    • Coca-Cola is engaged in the production, manufacture, distribution, and sale of soft drinks.
    • Third party defendants are Marcelina's nephews Jonathan Erasga, Benjamin I. Dequina, Jr., Allan D. Evangelista, and Eugenio D. Evangelista.
  • Dealership Agreement and Business Operations
    • Coca-Cola and Vedge Trading entered into a dealership agreement granting Vedge Trading exclusive distribution rights and a credit line.
    • Coca-Cola delivered products to Vedge Trading subject to payment terms of seven days from billing.
    • Delivery invoices and statements of account showed unpaid debt amounting to PHP 649,316.00 from May 23, 2010, to June 21, 2010.
  • Litigation History
    • Coca-Cola filed a Complaint for collection of money from Marcelina on November 26, 2012.
    • Marcelina denied knowledge of such dealership agreement; admitted registering "V.E.D.G.E. Trading" with DTI but claimed her nephews managed business operations.
    • Marcelina filed a Third Party Complaint against nephews claiming they should be liable.
  • Testimonies and Evidence
    • Marcelina testified she financed the business but did not participate in operations; nephews managed the business.
    • Dequina and Erasga were Coca-Cola sales representatives, barred from dealership, hence Marcelina registered the business under her name.
    • Marcelina visited the warehouse regularly; nephews testified Marcelina was involved in operations and finance discussions.
    • Delivery invoices were presented bearing signatures acknowledging receipt.
  • Lower Court Decisions
    • RTC dismissed the Complaint and Third Party Complaint for lack of cause of action.
    • RTC doubted the existence of dealership due to no written agreement presented but considered invoices sufficient proof of delivery.
    • RTC found Vedge Trading was a partnership between Marcelina and Erasga; personal assets liable only after partnership assets exhausted, but partnership was not impleaded.
    • CA reversed RTC decision, holding Marcelina liable based on delivery invoices and her admissions and visitation. CA ordered payment of principal and interest.
  • Petition to the Supreme Court
    • Marcelina filed Petition for Review on Certiorari challenging CA ruling.
    • Issues concern liability of Marcelina and third party defendants to Coca-Cola.

Issues:

  • Whether Marcelina is liable to Coca-Cola for unpaid products totaling PHP 649,316.00 plus corresponding interests.
  • Whether the third party defendants (Marcelina's nephews) are liable for Coca-Cola's unpaid products.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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