Case Summary (G.R. No. 140923)
Background of the Loan Agreement
On August 7, 1985, the Board of Directors of TVI authorized its President, Edgardo A. Yotoko, or its General Manager, Manuel M. Mendoza, to secure a loan from Banco Real Development Bank. Following this authorization, on September 11, 1985, the bank provided a loan of P500,000 to TVI. Mendoza established a promissory note and a chattel mortgage over 195 units of Beta video machines owned by TVI to collateralize the loan.
Corporate Changes and Foreclosure Proceedings
Subsequent to the loan agreement, TVI, along with other video firms, organized a new corporation named FGT Video Network Inc. on October 3, 1986. Following TVI's failure to meet its loan obligations upon maturity, the bank initiated extra-judicial foreclosure proceedings on January 26, 1987. A Sheriff's Report revealed that TVI was no longer operational at its registered address, and Mendoza denied knowledge of the location of the mortgaged machines.
Payment Proposals and Bank Demands
Amidst the ongoing foreclosure proceedings, Mendoza wrote to the bank on February 19, 1987, requesting additional time to fulfill the loan obligations and proposed a new repayment term. However, the bank received no payments, and Mendoza remained non-communicative regarding the whereabouts of the mortgaged equipment.
NBI Seizure of Assets
In a related case involving the NBI, a search warrant led to the confiscation of 638 machines and equipment, including the originally mortgaged Beta machines, from FGT's premises. Despite petitioners’ efforts to reclaim the machines, the Regional Trial Court issued temporary restraints, and they remained under NBI custody pending resolution of legal disputes.
Legal Actions and Trial Court Decision
On July 13, 1990, the bank filed a complaint for collection against TVI, FGT, and the petitioners. The petitioners claimed that the loan was solely a corporate obligation of TVI. However, the trial court found them personally liable, ruling that TVI was essentially an alter ego of the petitioners. The court underscored their improper transfer of mortgaged assets without the bank's consent and their failure to disclose the whereabouts of these assets during foreclosure proceedings.
Appellate Court Ruling
The Court of Appeals upheld the trial court's decision, affirming that the petitioners were l
...continue readingCase Syllabus (G.R. No. 140923)
Case Overview
- The case is a petition for review on certiorari concerning the liability of petitioners Manuel M. Mendoza and Edgardo A. Yotoko for the debts of Technical Video, Inc. (TVI) to Banco Real Development Bank (now LBC Development Bank).
- It originated from the decision of the Court of Appeals dated September 21, 1998, which affirmed the ruling of the Regional Trial Court (RTC) that held the petitioners personally liable for TVI’s obligations.
Background Facts
- On August 7, 1985, the Board of Directors of TVI passed a resolution authorizing either its President, Eduardo A. Yotoko, or General Manager Manuel M. Mendoza to secure a loan from the respondent bank.
- A loan of P500,000.00 was extended to TVI on September 11, 1985, with Mendoza executing a promissory note and a chattel mortgage over 195 units of Beta video machines as collateral.
- On October 3, 1986, the incorporation of FGT Video Network Inc. (FGT) occurred, with Mendoza serving as President and concurrently managing TVI.
Foreclosure Proceedings
- Due to TVI's failure to repay the loan, the respondent bank filed a petition for Extra Judicial Foreclosure and Sale of Chattel Mortgage on January 26, 1987.
- The Sheriff’s report indicated that TVI was no longer operating at its registered address, and Mend