Case Summary (G.R. No. 114145)
Case Background
The case involves an action for reconveyance, damages, and accounting initiated by Benjamin D. Yu against Lee Eng Hong and Rosalinda Villacorta. The Regional Trial Court of Cebu originally ruled in favor of the petitioners, but this decision was reversed by the Court of Appeals, which ordered the petitioners to account for the funds and assets of the Asia Furniture Center Company and the Cebu Asia Furniture Company, asserting that these belonged to the estate of Yu Ching, the late father of the respondent.
Petitioners’ Relationship and Claims
Lee Eng Hong is the son of deceased parents Tan Siu and Ivy Leung Chee Lue, while Rosalinda Villacorta is his half-sister. Both are engaged in the furniture business. Lee Eng Hong, originally from China, immigrated to the Philippines in 1978 as a foreign investor. He claimed he brought in substantial capital and had a significant role in the family business formerly known as Manila Furniture, which later became Cebu Asia Furniture.
Respondent's Claims
Benjamin D. Yu, son of Yu Ching and Gregoria Doquiles, contends that the assets and properties of the furniture business, including the disputed building, are solely owned by his late father. He contends that Lee Eng Hong acted merely as a "dummy" for Yu Ching and had no legitimate claim to the business or the building.
Trial Court Findings
The Regional Trial Court dismissed Benjamin Yu’s complaint, deeming it baseless given the lack of substantial documentary evidence. It found merit in the petitioners' claims regarding their ownership and relationship to the business and awarded damages to them.
Court of Appeals' Reversal
On appeal, the Court of Appeals reversed the trial court’s decision, commanding the petitioners to render an accounting and reconvey company assets to Yu Ching's estate, citing inaccuracies in the trial court’s findings and claims regarding ownership and partnerships within the furniture business.
Issues Presented
Petitioners identified several issues for review:
- The disregard by the appellate court of the trial court's advantages in determining truth.
- The superior weight of documentary evidence over testimonial evidence.
- Alleged errors in ignoring petitioners' financial evidence.
- Contradictory conclusions on the disputed business by the appeals court.
- The wrongful rejection of awarded damages and attorney fees.
Appellate Court's Approach to Evidence
In their assertion, the parties highlighted the appellate court's tendency to overlook established principles—that trial courts possess greater credibility in evaluating eyewitness testimonies compared to appeals courts. The appellate ruling relied on testimonial evidence from Benjamin Yu, which contrasted significantly with the documentary evidence supporting petitioners' claims.
Credibility of Evidence
The Supreme Court confirmed that the trial court's findings regarding credibility should hold significant weight, especially since the trial court found the petitioners' testimonies more credible and logical. The evidence presented included various documents proving the financial contributions and ownership roles of the petitioners in the furniture business.
Ownership Dispute
The dispute further centered on the ownership of the building situated on El Filibusterismo Street. The petitioners contended that the construction capital for the building predominantly came from Ivy Leung Ch
...continue readingCase Syllabus (G.R. No. 114145)
Case Overview
- This case revolves around a legal dispute concerning the ownership of funds, assets, and a concrete building located on El Filibusterismo Street, Cebu City.
- The case was initiated by Benjamin D. Yu, who filed for reconveyance, damages, and accounting against petitioners Lee Eng Hong and Rosalinda Villacorta.
- The Regional Trial Court of Cebu initially ruled in favor of the petitioners, but this decision was overturned by the Court of Appeals.
Parties Involved
Petitioners:
- Lee Eng Hong: Son of the deceased Tan Siu and Ivy Leung Chee Lue, a former tailor from Hong Kong who moved to the Philippines in 1978.
- Rosalinda Villacorta: Half-sister of Lee Eng Hong and also involved in the furniture business.
Respondent:
- Benjamin D. Yu: Claims ownership of the disputed assets as the son of Yu Ching, who was allegedly the true owner of the businesses and properties in question.
Background Facts
- Yu Ching was married to Gregoria Doquiles and had three children, including Benjamin Yu.
- After becoming a widower, Yu Ching lived with Ivy Leung Chee Lue, Lee Eng Hong’s mother, leading to a business partnership in the furniture industry.
- Lee Eng Hong asserts that he entered the Philippines as a foreign investor, bringing in US$100,000, which he used to contribute to the family business.
- Benjamin D. Yu contends that Lee Eng Hong acted as a dummy for Yu Ching, denying him any equitable interest in the disputed properties.
Legal Proceedings
- The Regional Trial Court dismis