Commercial Law,  Legally Yours

Del Castillo Case Doctrines (Commercial Law)

Del Castillo Case Doctrines

Summaries of case doctrines penned by Justice Del Castillo.

Commercial Law

Asian Terminal, Inc. v. Malayan Insurance Co., Inc.
G.R. No. 171406, April 4, 2011The presentation of the marine insurance policy is not indispensable before the insurer may recover from the common carrier. The subrogation receipt is sufficient to establish the relationship between the insurer and the client.

Dutch Movers, Inc. v. Edilberto Lequin
G.R. No 210032, April 25, 2017

The separate and distinct personality of a corporation from its stockholders may be disregarded, or the veil of corporate fiction may be pierced, attaching personal liability against responsible persons, if the corporation’s personality is used to defeat public convenience, justify wrong, protect fraud or defend crime, or is used as a device to defeat the labor laws.

Edna Diago Lhuillier v. British Airways
G.R. No. 171092, March 15, 2010

A tortious act committed by a common carrier personnel is covered by the Warsaw Convention. The Convention creates no exception for an injury suffered as a result of intentional conduct such as a claim for intentional infliction of emotional distress. Thus, the jurisdiction of the subject matter is governed by the Warsaw Convention.

Jurisdictio est potestas de publico introducta cum necessitate juris dicendi.
Jurisdiction is a power introduced for the public good, on account of the necessity of dispensing justice.

Equitable PCI Bank (now Banco De Oro Unibank, Inc,) v. Castor A. Dompor
G.R. No. 163293 & 163297, December 13, 2010

A bank manager’s abuse of authority in implementing bank policies is an abuse of trust which is a just cause for his termination.

Equitable Banking Corporation, Inc. v. Special Steel Products, Inc.
G.R. No. 175350, June 13, 2012

Crossed checks are intended for deposit in the named payee’s account only and to no other.

Forest Hills Golf and Country Club v. Fil-Estate Properties, Inc.
G.R. No. 206649, July 20, 2016

A stockholder must exert all reasonable efforts to exhaust all remedies available under the articles of incorporation, by-laws or rules governing the corporation or partnership to obtain the relief he desires before he can be allowed to obtain relief through a derivative suit (Rule 8, Section 1 of the Interim Rules of Procedure Governing Intra-Corporate Controversies).

Federated LPG Dealers Association v. Ma. Cristina L. Del Rosario et. al.
G.R. No. 202639, November 9, 2016

A member of the Board of Directors of a corporation, cannot, by mere reason of such membership, be held liable for the corporation’s probable violation of the law.

Heirs of Jose Marcial K. Ochoa v. G & s Transport Corporation
G.R. No. 170071, March 9, 2011

The acquittal of the accused in reckless imprudence case is not proof of the common carrier’s exercise of extraordinary diligence. An independent civil action under Article 31 of the Civil Code remains separate and distinct from any criminal prosecution based on the same act. Thus, a ruling on the culpability (culpa criminal) of the offender will have no bearing on said independent civil action based on an entirely different cause of action (culpa contractual).

Hilario P. Soriano v. People of the Philippines
G.R. No. 162336, February 1, 2010

A bank officer violates the DOSRI law when he acquires bank funds for his personal benefit, even if such acquisition was facilitated by a fraudulent loan application. Directors, officers, stockholders, and their related interests cannot be allowed to interpose the fraudulent nature of the loan as a defense to escape culpability for their circumvention of Section 83 of RA No. 337 (General Banking Act).

Insurance Life Assurance Company, Ltd. v. Paz Y. Khu, and Frederick Y. Khu
G.R. No. 195176, April 18, 2016

The date of the last reinstatement mentioned in Section 48 of the Insurance Code pertains to the date that the insurer approved the application for reinstatement. In cases of ambiguity, the interpretation favorable to the insured in determining the date when the reinstatement was approved shall be adopted.

Lambert Pawnbrokers and Jewelry Corporation and Lambert Lim v. Helen Binamira
G.R. No. 170464, July 12, 2010
In the absence of malice and bad faith, a stockholder or an officer of a corporation cannot be made personally liable for corporate liabilities. Consequently, the stockholders or officers are not solidarily liable with the corporation for illegal dismissal of its employee in the absence of bad faith.

Leonardo S. Umale v. ASB Realty Corporation
G.R. No. 181126, June 15, 2011

Under the SEC Rules, the interim rehabilitation receiver of the debtor corporation does not take over the control and management of the debtor corporation. Being placed under corporate rehabilitation and having a receiver appointed to carry out the rehabilitation plan do not ipso facto deprive a corporation and its corporate officers of the power to recover its unlawfully detained property.

Life of Canada (Philippines), Inc. v. Sandra Tan Kit and the Estate of the Deceased Norberto Tan
G.R. No. 183272, October 15, 2014

Compensatory interest refers to the penalty or indemnity for damages imposed by law or by the court. As a form of damages, compensatory interest is due only if the obligor is proven to have failed to comply with his obligation.

Manila Bankers Life Insurance Corp. v. Cresencia P. Aban
G.R. No. 175666, July 29, 2013

After the two-year period contemplated under Section 48 of the Insurance Code (incontestability clause) or when the insured dies within that period, the insurer must make good policy, even though the policy was obtained by fraud, concealment, or misrepresentation.

Marina Port Services, Inc. v. American Home Assurance Corporation
G.R. No. 201822, August 12, 2015

The relationship between an arrastre operator and a consignee is similar to that between a warehouseman and a depositor, or that between a common carrier and the consignee and/or owner of the shipped goods. An arrastre operator should adhere to the same diligence required of a warehouseman or a common carrier.

MOF Company, Inc. v. Shin Yang Brokerage Corporation
G.R. 172822, December 18, 2009

The reception of the bill of lading by the consignee who does not object to any terms or stipulations contained therein constitutes an acceptance of the contract of which the acceptor has actual or constructive notice.

A consignee who is not a signatory to a bill of lading is not bound by the stipulations therein.

A consignee, although not a signatory may become a party to the contract by:
1) agency between the consignee and the shipper/consignor;
2) unequivocal acceptance of the bill of lading delivered to the consignee, with full knowledge of its contents; or
3) availment of the stipulation pour atrui.

Manulife Philippines, Inc. v. Hermenegilda Ybanez
G.R. No. 204736, November 28, 2016

Concealment as a ground for rescission must be satisfactorily and convincingly proved before the insurer can validly sue for rescission of insurance contracts.

Philippine National Bank v. Spouses Cheah
G.R. No. 170865, April 25, 2012

Payment on the checks without previously clearing them with the drawee bank is contrary to normal banking practice. Thus, before a check is cleared for deposit, the collecting bank can only assume at its own risk that the check would be cleared and paid out.

PNB v. F.F. Cruz and Co.
G.R. No. 173259, July 25, 2011

The banking business is impressed with public trust. A higher degree of diligence is imposed on banks relative to the handling of their affairs than that of an ordinary business enterprise.

San Miguel Corporation v. Bartolome Puzon, Jr.
G.R. No. 167567, September 22, 2010

Under Section 12 of the Negotiable Instruments Law, the party delivering the instrument must do so for the purpose of giving effect thereto. Otherwise, there is no delivery in contemplation of law.

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