COMMECIAL LAWNEGOTIABLE INSTRUMENTS2013Checks; negotia!e inst"#$ents% The check &e!i'e"e& to (as $a&e payable to cash. Un&e"the Negotia!e Inst"#$ents La() this t*+e o, check (as payable to the bearer an& co#!&e negotiated by mere delivery (itho#t the nee& o, an in&o"se$ent% People of the Philippinesv. Gilbert Reyes Wagas)G%R% No% 1-./03) Se+te$e" 0) 2013.2012C"osse& check% The checks that Inte"co iss#e& in ,a'o" o, SS1I (e"e a!! c"osse&) $a&e+a*a!e to SS1I2s o"&e") an& containe& the notation 3acco#nt +a*ee on!*%4This c"eates a"easona!e e5+ectation that the +a*ee a!one (o#!& "ecei'e the +"ocee&s o, the checks an&that &i'e"sion o, the checks (o#!& e a'e"te&%This e5+ectation a"ises ,"o$ the acce+te&anking+"acticethatcrossedchecksa"eintendedfordeposit inthenamedpayeesaccount only an& no othe"%At the 'e"* !east) the nat#"e o, c"osse& checks sho#!& +!ace aankonnoticethat it sho#!&e5e"cise$o"eca#tiono" e5+en&$o"ethanac#"so"*in6#i"*) to asce"tain (hethe" the +a*ee on the check has a#tho"i7e& the ho!&e" to &e+ositthe sa$e in a &i,,e"ent acco#nt% It is (e!! to "e$e$e" that 38t9he anking s*ste$ haseco$e anin&is+ensa!einstit#tion inthe $o&e"n(o"!&an& +!a*s a'ita!"o!e intheecono$ic !i,e o, e'e"* ci'i!i7e& societ*%:hethe" as $e"e +assi'e entities ,o" the sa,e;kee+ing an& sa'ing o, $one* o" as acti'e inst"#$ents o, #siness an& co$$e"ce) anksha'e attaine& a #i6#ito#s +"esence a$ong the +eo+!e) (ho ha'e co$e to "ega"& the$(ith "es+ect an& e'en g"atit#&e an&) ao'e a!!) t"#st an& con,i&ence%In this connection) itis i$+o"tant that anks sho#!& g#a"& against in onaank=&"a(ee>) "e6#estingthe!atte" to+a*a+e"sonna$e&the"ein =+a*ee> o" to the o"&e" o, the +a*ee o" to the ea"e") a na$e& s#$ o, $one*%The iss#ance o, the check &oes not o, itse!, o+e"ate as an assign$ent o, an* +a"t o, the,#n&s in the ank to the c"e&it o, the &"a(e"% ?e"e) the ank eco$es !ia!e on!* a,te" itacce+ts o" ce"ti,ies the check% A,te" the check is acce+te& ,o" +a*$ent) the ank (o#!&then&eit thea$o#nt toe+ai&totheho!&e"o,thecheck,"o$theacco#nt o,the&e+osito";&"a(e"%The"e a"e checks o, a s+ecia! t*+e ca!!e& ,anager-s o" cashier-s checks% These a"e i!!s o,e5change &"a(n * the ank2s $anage" o" cashie") in the na$e o, the ank) against theank itse!,% T*+ica!!*) a $anage"2s o" a cashie"2s check is +"oc#"e& ,"o$ the ank *a!!ocating a +a"tic#!a" a$o#nt o, ,#n&s to e &eite& ,"o$ the &e+osito"2s acco#nt o" *&i"ect!* +a*ing o" &e+ositing to the ank the 'a!#e o, the check to e &"a(n% Since theank iss#es the check in its na$e) (ith itse!, as the &"a(ee) the check is &ee$e& acce+te&in a&'ance% O"&ina"i!*) the check eco$es the +"i$a"* o!igation o, the iss#ing ank an&constit#tes its ("itten +"o$ise to +a* #+on &e$an&%Ne'e"the!ess) the$e"eiss#anceo,a$anage"2scheck&oesnot ipsofacto (o"kasana#to$atict"ans,e" o,,#n&stotheacco#nt o, the+a*ee% Incasethe+"oc#"e" o, the$anage"2s o" cashie"2s check "etains c#sto&* o, the inst"#$ent) &oes not ten&e" it to theinten&e& +a*ee) o" ,ai!s to $ake an e,,ecti'e &e!i'e"*) (e ,in& the ,o!!o(ing +"o'ision on#n&e!i'e"e& inst"#$ents #n&e" the Negotia!e Inst"#$ents La( a++!ica!e@Sec% 1A% .elivery/ 0hen effectual/ 0hen presu,ed. B Every contract on anegotia!e inst"#$ent is incomplete and revocable until delivery of theinstrument forthepurposeof givingeffect thereto. Aset(eeni$$e&iate+a"ties an& as "ega"&s a "e$ote +a"t* othe" than a ho!&e" in e co#"se)the delivery in order to be effectual must be made either by or under theauthority of the party making dra!ing accepting or indorsing) as the case$a* e; an&) in s#ch case) the &e!i'e"* $a* e sho(n to ha'e een con&itiona!) o",o" a s+ecia! +#"+ose on!*) an& not ,o" the +#"+ose o, t"ans,e""ing the +"o+e"t* inthe inst"#$ent% B#t (he"e the inst"#$ent is in the han&s o, a ho!&e" in e co#"se)a 'a!i& &e!i'e"* the"eo, * a!! +a"ties +"io" to hi$ so as to $ake the$ !ia!e to hi$is conc!#si'e!* +"es#$e&% An& (he"e the inst"#$ent is no !onge" in the +ossessiono, a +a"t* (hose signat#"e a++ea"s the"eon) a 'a!i& an& intentiona! &e!i'e"* *hi$ is +"es#$e& #nti! the cont"a"* is +"o'e&% =E$+hasis s#++!ie&%>1etitione" ackno(!e&ges that the Manage"2s Check (as +"oc#"e& * "es+on&ents) an& thatthe a$o#nt to e +ai& ,o" the check (o#!& e so#"ce& ,"o$ the &e+osit acco#nt o, ?i;T"i% :hen Ros$i! &i& not acce+t the Manage"2s Check o,,e"e& * "es+on&ents) the !atte""etaine&c#sto&*o, theinst"#$ent instea&o, cance!!ingit% AstheManage"2sCheckneithe" (ent to the han&s o, Ros$i! no" (as it ,#"the" negotiate& to othe" +e"sons) theinst"#$ent"e$ainen&e!i'e"e&% 1etitione"&oesnot&is+#tethe,actthat"es+on&ents"etaine& c#sto&* o, the inst"#$ent%Since the"e (as no &e!i'e"*) +"esent$ent o, the check to the ank ,o" +a*$ent &i& notocc#"% An o"&e" to &eit the acco#nt o, "es+on&ents (as ne'e" $a&e% In ,act) +etitione"con,i"$s that the Manage"2s Check (as ne'e" negotiate& o" +"esente& ,o" +a*$ent to itsE"$itaB"anch) an&that thea!!ocate&,#n&issti!! he!&*theank% Asa"es#!t) theassigne&,#n&is&ee$e&to"e$ain+a"t o,theacco#nto,?i;T"i) (hich+"oc#"e&theManage"2s Check% The &oct"ine that the &e+osit "e+"esente& * a $anage"2s check a#to$atica!!* +asses tothe+a*eeis ina++!ica!e) eca#setheinst"#$ent Ba!tho#ghacce+te&ina&'anceB2"e$ains #n&e!i'e"e&% ?ence) "es+on&ents sho#!& ha'e een in,o"$e& that the &e+osit ha&een!e,t inacti'e,o" $o"ethan10*ea"s) an&that it $a*es# the check $a* not e encashe& #t on!* &e+osite& in the ank; => the check $a* e negotiate& on!* once E to the one (ho has an acco#nt (iththe ank; an& =c> the act o, c"ossing the check se"'es as a (a"ning to the ho!&e" that the checkhas een iss#e& ,o" a &e,inite +#"+ose an& he $#st in6#i"e i, he "ecei'e& thecheck +#"s#ant to this +#"+ose; othe"(ise) he is not a ho!&e" in e co#"se% In othe" (o"&s) the c"ossing o, a check is a (a"ning that the check sho#!& e &e+osite&on!* in the acco#nt o, the +a*ee% :hen a check is c"osse&) it is the t* o, the co!!ectingank to asce"tain that the check is on!* &e+osite& to the +a*ee2s acco#nt% In co$+!ete&is"ega"&o, this t*) 1CIB2ss*ste$s a!!o(e&Ba!$ace&atoencash2AManage"2schecks (hich (e"e a!! c"osse& checks) o" checks +a*a!e to the 3+a*ee2s acco#nt on!*%4 PhilippineCo,,ercialBankvs. "ntonioB.Bal,acedaand Rolando$. Ra,os G.R.$o. %'8%6( Septe,ber +% +)%%.2010Fishono"; acce+tance as "es#!ting in no'ation% 1etitione"2s c!ai$that "es+on&ent2sacce+tance o, the So!i& Bank check (hich "e+!ace& the &ishono"e& 1"#&entia! ank check"es#!te& to no'ation (hich &ischa"ge& the !atte" check is #n$e"ito"io#s%In $ycoSalesCorporationv.B" 9inanceCorporation) (e,o#nntena!e+etitione"N*co2s c!ai$ that no'ation took +!ace (hen the &ishono"e& B1I check it en&o"se& to BAGinance Co"+o"ation (as s#se6#ent!* "e+!ace& * a Sec#"it* Bank check%3Inthis case) "es+on&ent2sacce+tance o, the So!i&Bankcheck) (hich"e+!ace&the&ishono"e&1"#&entia!Bank check) &i& not "es#!t to no'ation as the"e (asnoe5+"essag"ee$enttoesta!ishthat+etitione"(asa!"ea&*&ischa"ge&,"o$his!iai!it*to+a*"es+on&ent the a$o#nt o, 1210)000%00 as +a*$ent ,o" the300 ags o, "ice% As (e sai&)novation is never presumed) the"e $#st e an express intention to no'ate%In ,act) (hentheSo!i&Bankcheck(as &e!i'e"e&to"es+on&ent) thesa$e(as a!soin&o"se&*+etitione" (hich sho(s +etitione"2s "ecognition o, the e5isting o!igation to "es+on&ent to+a* 1210)000%00 s# the check $a* e negotiate& on!* once E to one (ho has an acco#nt (ith aank; an& =c> the act o, c"ossing the check se"'es as (a"ning to the ho!&e" that the check haseen iss#e& ,o" a &e,inite +#"+ose so that he $#st in6#i"e i, he has "ecei'e&thecheck+#"s#ant tothat +#"+ose) othe"(ise) heis not aho!&e" ine co#"se%The Co#"t has taken That at the ti$e it (as negotiate& to hi$) he ha& no notice o, an* in,i"$it* inthe inst"#$ent o" &e,ect in the tit!e o, the +e"son negotiating it%4In the case o, a c"osse& check) as in this case) the ,o!!o(ing +"inci+!es $#st a&&itiona!!*e consi&e"e&@ A c"osse& check =a> $a* not e encashe& #t on!* &e+osite& in the ank;=> $a* e negotiate& on!* once E to one (ho has an acco#nt (ith a ank; an& =c> (a"nstheho!&e"that it haseeniss#e&,o"a&e,inite+#"+osesothat theho!&e" the"eo, $#st in6#i"ei, hehas "ecei'e&thecheck+#"s#ant tothat+#"+ose; othe"(ise) he is not a ho!&e" in e co#"se%Base&onthe,o"egoing) "es+on&entsha&thet*toasce"tainthe in&o"se"2s) inthiscase Loitana2s) tit!e to the check o" the nat#"e o, he" +ossession% This "es+on&ents ,ai!e&to &o% Res+on&ents2 'e"i,ication ,"o$ Met"oank on the ,#n&ing o, the check &oes nota$o#nt to &ete"$ination o, Loitana2s tit!e to the check% Gai!ing in this "es+ect)"es+on&entsa"eg#i!t*o,g"ossneg!igencea$o#ntingto!ega! asenceo,goo&,aith)cont"a"* to Section -2=c> o, the Negotia!e Inst"#$ents La(%?ence) "es+on&ents a"e not&ee$e& ho!&e"s in e co#"se o, the s#oined by her husband oined by her husband +"o,its a"ising +"i$a"i!* ,"o$ the e,,o"ts o, othe"s%Th#s) to s#stain the SEC +osition in this case) 1CI2s sche$e o" cont"act (ith its #*e"s$#st ha'e a!! these e!e$ents%7An e5a$+!e that co$es to $in& (o#!& e the !ong;te"$ co$$e"cia! +a+e"s that !a"geco$+anies) !ike San Mig#e! Co"+o"ation =SMC>) o,,e" to the +#!ic ,o" "aising ,#n&s thatit nee&s ,o" e5+ansion%:hen an in'esto" #*s these +a+e"s o" sec#"ities) he in'ests his$one*)togethe"(ithothe"s) inSMC(ithane5+ectationo,+"o,itsa"ising,"o$thee,,o"ts o, those(ho$anagean&o+e"atethat co$+an*% SMChas to"egiste" theseco$$e"cia! +a+e"s (ith the SEC e,o"e o,,e"ing the$ to in'esto"s%?e"e) 1CI2s c!ients &o not $ake s#ch in'est$ents%The* #* a +"oct o, so$e 'a!#e tothe$@ an Inte"net (esite o, a 1-;MB ca+acit*%The c!ient can #se this (esite to ena!e+eo+!e to ha'e inte"net access to (hat he has to o,,e" to the$) sa*) so$e skin c"ea$% The#*e"so, the (esite &onotin'est$one*in1CIthat it co#!se,o" "#nning so$e#siness that (o#!& gene"ate +"o,its ,o" the in'esto"s% The +"ice o, USC230%00 is (hatthe#*e"+a*s,o"the#seo,the(esite) atangi!eassetthat1CIc"eates) #singitsco$+#te" ,aci!ities an& technica! ski!!s%Securities and E?change Co,,ission vs.Prosperity.Co, !nc. G.R. $o. %=6%5& *anuary +' +)%+.2011Sec#"ities Reg#!ation Co&e; +#!ic co$+an*% The 1hi!i++ine Kete"ans Bank =the 3Bank4>a"g#e& thatitis not a3+#!ic co$+an*4 s# confusionof goods=+"oct con,#sion>) (he"etheo"&ina"i!*+"#&ent+#"chase" (o#!& e ince& to +#"chase one +"oct in the e!ie, that he(as +#"chasing the othe"; an&=2> confusion of business=so#"ce o" o"igin con,#sion>) (he"e) a!tho#gh thegoo&s o, the +a"ties a"e &i,,e"ent) the +"oct) the $a"k o, (hich"egist"ationisa++!ie&,o"*one+a"t*)iss#chas$ight "easona!*eass#$e&too"iginate(iththe"egist"ant o, anea"!ie" +"oct) an&the+#!ic (o#!& then e &ecei'e& eithe" into that e!ie, o" into the e!ie, thatthe"e is so$e connection et(een the t(o +a"ties) tho#gh ine5istent%A++!*ingtheFo$inanc*Test tothecaseat a")thisCo#"t ,in&sthat the#seo,thest*!i7e&3S4*"es+on&ent initsSt"ong"#e" shoesin,"ingesonthe$a"ka!"ea&*"egiste"e& * +etitione" (ith the I1O% :hi!e it is #n&is+#te& that +etitione"2s st*!i7e& 3S4is (ithin an o'a! &esign) to this Co#"t2s $in&) the &o$inant ,eat#"e o, the t"a&e$a"k is thest*!i7e& 3S)4 as it is +"ecise!* the st*!i7e& 3S4 (hich catches the e*e o, the +#"chase"% Th#s) e'en i, "es+on&ent &i& not #se an o'a! &esign) the $e"e ,act that it #se& the sa$est*!i7e&3S4) thesa$eeingthe&o$inant ,eat#"eo, +etitione"2st"a&e$a"k) a!"ea&*constit#tes in,"inge$ent #n&e" theFo$inanc*Test% Skechers B.S.". !nc. vs. !nterPacific !ndustrial 4rading Corp. et al.G.R. $o. %=6(+% ;arch +8 +)%%.2010Inte!!ect#a! +"o+e"t*; "ight o, +atentees% It is c!ea" ,"o$ Section 3. o, Re+#!ic Act No%1A- that the e5c!#si'e "ight o, a +atentee to make, use and sell a +atente& +"oct) a"tic!eo" +"ocessexistsonlyduringthetermofthepatent% Intheinstant case) 1hi!i++ineLette"s 1atent No% 2111A) (hich (as the asis o, "es+on&ents in ,i!ing thei" co$+!aint(ith the BLA;I1O) (as iss#e& on J#!* 1A) 1/D.% This ,act (as a&$itte& * "es+on&entsthe$se!'es in thei" co$+!aint% The* a!so a&$itte& that the 'a!i&it* o, the sai& +atent is#nti! J#!* 1A) 2000) (hich is in con,o"$it* (ith Section 21 o, RA 1A-) +"o'i&ing that theterm of a patent sha!! e seventeen (1! years from the date of issuance thereof% Section0) R#!e 12/ o, the R#!es o, Co#"t +"o'i&es that an a&$ission) 'e"a! o" ("itten) $a&e *a +a"t* in the co#"se o, the +"ocee&ings in the sa$e case) &oes not "e6#i"e +"oo, an& thatthe a&$ission $a* e cont"a&icte& on!* * sho(ing that it (as $a&e th"o#gh +a!+a!e$istake o" that no s#ch a&$ission (as $a&e% In the +"esent case) the"e is no &is+#te as to"es+on&ents2 a&$ission that the te"$ o, thei" +atent e5+i"e& on J#!* 1A) 2000% Neithe" is12the"e e'i&ence to sho( that thei" a&$ission (as $a&e th"o#gh +a!+a!e $istake% ?ence)cont"a"* to the +"ono#nce$ent o, the CA) the"e is no !onge" an* nee& to +"esent e'i&enceon the iss#e o, e5+i"ation o, "es+on&ents2 +atent%Phil Phar,a0ealth !nc. vs. Pfi1er !ncand Pfi1er CPhil.D !nc. G.R. $o. %=&&%' $ove,ber %& +)%)%Ma"k; !ike!ihoo&o, con,#sion% Acco"&ing to Section 123%1=&> o, R%A% No% D2/3) a $a"kcannot e"egiste"e&i, it isi&entica! (itha"egiste"e&$a"ke!ongingtoa&i,,e"ent+"o+"ieto" (ith an ea"!ie" ,i!ing o" +"io"it* &ate) (ith "es+ect to@ =1> the sa$e goo&s o" se"'ices;=2> c!ose!* "e!ate& goo&s o" se"'ices; o" =3> nea" "ese$!ance o, s#ch $a"k as to !ike!* &ecei'e o" ca#se con,#sion%a%> con,#sion o, goo&sIse"'ices%> con,#sion o, #sinessIn &ete"$ining si$i!a"it* an& !ike!ihoo& o, con,#sion) o, the $a"k) (ith e'i&ence to thate,,ect) (ithin three (%! years ,"o$ the ,i!ing o, the a++!ication ,o" "egist"ation; othe"(ise)the a++!ication sha!! e "e,#se& o" the $a"k sha!! e "e$o'e& ,"o$ the "egiste"%In othe"(o"&s) the pri,a facie +"es#$+tion "o#ght ao#t * the "egist"ation o, a $a"k $a* echa!!enge& an&o'e"co$e) in ana++"o+"iate action) *+"oo, o, the n#!!it*o, the"egist"ation o" o, non;#se o, the $a"k) e5ce+t (hen e5c#se&%Mo"eo'e") the +"es#$+tion$a*!ike(ise e &e,eate&*e'i&ence o,prior use*anothe" +e"son) i.e.) it (i!!cont"o'e"t ac!ai$o, !ega! a++"o+"iationo"o,o(ne"shi+ase&on"egist"ation*as#se6#ent #se"% &his is because a trademark is a creation of use and belongs to one"ho first used it in trade or commerce.The &ete"$ination o, +"io"it* o, #se o, a $a"k is a 6#estion o, ,act%A&o+tion o, the $a"ka!one &oes not s#,,ice% One $a* $ake a&'e"tise$ents) iss#e ci"c#!a"s) &ist"i#te +"ice!ists on ce"tain goo&s) #t these a!one (i!! not in#"e to the c!ai$ o, o(ne"shi+ o, the $a"k#nti! thegoo&sea"ingthe$a"ka"eso!&tothe+#!icinthe$a"ket% Acco"&ing!*)"ecei+ts) sa!es in'oices) an& testi$onies o, (itnesses as c#sto$e"s) o" o"&e"s o, #*e"s)est +"o'e the act#a! #se o, a $a"k in t"a&e an& co$$e"ce "ing a ce"tain +e"io& o, ti$e%?e"e) Be""is (as a!e to esta!ish that it (as #sing its $a"k 3F;10 D0 :14 since J#ne 20)2002)e'ene,o"eit,i!e& ,o"its"egist"ation(iththeI1Oon No'e$e" 2/)2002) assho(n * its FAU (hich (as #n&e" oath an& nota"i7e&) ea"ing the sta$+ o, the B#"ea#o, T"a&e$a"ks o, the I1O on A+"i! 2-) 2003) an& (hich state& that it ha& an attach$ent asAnne5 3B4 sa!es in'oices an& o,,icia! "ecei+ts o, goo&s ea"ing the $a"k% In&ee&) theFAU) eing a nota"i7e& &oc#$ent) es+ecia!!* (hen "ecei'e& in e co#"se * the I1O) ise'i&ence o, the ,acts it state& an& has the +"es#$+tion o, "eg#!a"it*) entit!e& to ,#!! ,aithan&c"e&it #+onits,ace% Th#s) the#"&eno,+"oo,too'e"co$ethe+"es#$+tiono,a#thenticit* an& e e5ec#tion !ies on the +a"t* contesting it) an& the "e#tting e'i&encesho#!& e c!ea") st"ong) an& con'incing as to +"ec!#&e a!! cont"o'e"s* as to the ,a!sit* o,the ce"ti,icate%:hat is $o"e) the FAU is #tt"esse& * the Ce"ti,ication &ate& A+"i! 21)200A iss#e& * the B#"ea# o, T"a&e$a"ks that Be""is2 $a"k is sti!! 'a!i& an&e5isting% Berris "gricultural Co. !nc. vs. $orvy "byadang G.R. $o. %8(6)6 7ctober %(+)%).Ma"k; o(ne"shi+% Un&e" Section123=&> o, RAD2/3) the "egist"ationo, a $a"kis+"e'ente&(iththe ,i!ing o, anea"!ie" a++!ication ,o" "egist"ation% This $#st not)ho(e'e") e inte"+"ete& to $ean that o(ne"shi+ sho#!& e ase& #+on an ea"!ie" ,i!ing&ate% :hi!e RA D2/3 "e$o'e& the +"e'io#s "e6#i"e$ent o, +"oo, o, act#a! #se +"io" tothe ,i!ing o, an a++!ication ,o" "egist"ation o, a $a"k, proof of prior and continuous useisnecessary toestablisho"nershipof amark. S#ch o(ne"shi+constit#tes s#,,iciente'i&ence to o++ose the "egist"ation o, a $a"k%Sec% 130o, theI1Co&e+"o'i&es that 3an*+e"son(hoe!ie'es that he(o#!&e&a$age& * the "egist"ation o, a $a"k 5 5 54 $a* ,i!e an o++osition to the a++!ication%14The te"$ 3an* +e"son4 enco$+asses the t"#e o(ne" o, the $a"kMthe +"io" an& contin#o#s#se"%Nota!*) theCo#"t has"#!e&that the+"io" an&contin#o#s#seo,a$a"k$a*e'eno'e"co$e the +"es#$+ti'e o(ne"shi+ o, the "egist"ant an& e he!& as the o(ne" o, the$a"k%?e"e) the incont"o'e"ti!e t"#th) as esta!ishe& * the e'i&ence s#$itte& * the +a"ties) isthat ELIS is the +"io" #se" o, the $a"k% On the othe" han&) Shen Fa" ,ai!e& to "e,#te thee'i&ence cite& * the BLA in its &ecision%Mo"e i$+o"tant!*) Shen Fa" ,ai!e& to +"esents#,,icient e'i&ence to +"o'e its o(n +"io" #se o, the $a"k 3KES1A%4As s#ch) ELIS $#st e consi&e"e& as the +"io" an& contin#o#s #se" o, the $a"k 3KES1A4an&its t"#e o(ne"% ?ence) ELISis entit!e&tothe "egist"ationo, the $a"kinitsna$e% E.:. !ndustrial Sales !nc. and Engracio :ap vs. Shen .ar Electricity ;achineryCo. #td. G.R. $o. %868') 7ctober +) +)%).T"a&e$a"k; "ights%A t"a&e$a"k is an* &istincti'e (o"&) na$e) s*$o!) e$!e$) sign) o"&e'ice) o" an* co$ination the"eo,) a&o+te& an& #se& * a $an#,act#"e" o" $e"chant onhis goo&sto identify and distinguishthe$ ,"o$ those $an#,act#"e&) so!&) o" &ea!t *othe"s%Ina"g#a!*) it is an inte!!ect#a! +"o+e"t* &ese"'ing +"otection * !a(% In t"a&e$a"kcont"o'e"sies) each case $#st e sc"#tini7e& acco"&ing to its +ec#!ia" ci"c#$stances) s#chthat ) (he"e the o"&ina"i!* +"#&ent+#"chase" (o#!& e ince& to +#"chase one +"oct in the e!ie, thathe (as +#"chasing the othe"; an&=2> con,#sion o, #siness =so#"ce o" o"igin con,#sion>) (he"e) a!tho#ghthe goo&s o, the +a"ties a"e &i,,e"ent) the +"oct) the $a"k o, (hich"egist"ation is a++!ie& ,o" * one +a"t*) is s#ch as $ight "easona!* eass#$e& to o"iginate (ith the "egist"ant o, an ea"!ie" +"oct) an& the+#!ic (o#!& then e &ecei'e& eithe" into that e!ie, o" into the e!ie,that the"e is so$e connection et(een the t(o +a"ties) tho#ghine5istent% .er,aline !nc. vs. ;yra Pha,aceuticals !nc. G.R. $o. %5))=' "ugust %= +)%).T"a&e$a"k; "ight to ,i!e action ,o" in,"inge$ent%Section 22 o, RA 1AA states that only aregistrant of a mark can ,i!e a case ,o" infringement%Co"o!!a"* to this) Section 1/ o, RA1AA +"o'i&es that an* "ight con,e""e& #+on the "egist"ant #n&e" the +"o'isions o, RA 1AAte"$inates (hen the The #se o" a++!ication o, the in,"inging $a"k o" t"a&e na$e is !ike!* tocause confusion or mistake or to deceive purchaserso" othe"s as to thegoo&s o" se"'ices the$se!'es o" as to the so#"ce o" o"igin o, s#ch goo&s o"se"'ices o" the i&entit* o, s#ch #siness; an&=-> It is"ithout theconsento,thet"a&e$a"ko"t"a&ena$eo(ne"o"theassignee the"eo,%C!ea"!*) a trade name need not be registered "ith the #P$ before an infringement suitmaybefiledbyitso"neragainsttheo"nerofaninfringingtrademark.A!!thatis"e6#i"e& is that the t"a&e na$e ispreviously used in trade or commercein the1hi!i++ines%Section 22 o, Re+#!ic Act No% 1AA) as a$en&e&) "e6#i"e& "egist"ation o, a t"a&e na$e asa con&ition ,o" the instit#tion o, an in,"inge$ent s#it%?o(e'e") RAD2/3) (hichtooke,,ect on1Jan#a"*1//D) has &is+ense&(iththe"egist"ation "e6#i"e$ent%Section 1A-%2 o, RA D2/3 catego"ica!!* states that trade namesshall beprotected, evenpriortoor"ithout registration"iththe#P$) against an*#n!a(,#! act inc!#&ing an* s#se6#ent #se o, the t"a&e na$e * a thi"& +a"t*) (hethe" asa t"a&e na$e o" a t"a&e$a"k likely to mislead the public% Th#s@ 3#t is the likelihood ofconfusion that is the gravamen of infringement% B#t the"e is no aso!#te stan&a"& ,o"!ike!ihoo& o, con,#sion% On!* the +a"tic#!a") an& so$eti$es +ec#!ia") ci"c#$stances o,each case can &ete"$ine its e5istence% Th#s) in in,"inge$ent cases) +"ece&ents $#st ee'a!#ate&inthe!ight o,each+a"tic#!a"case% CoffeePartners !nc. vs. San9ranciscoCoffee E Roastery !nc. G.R. $o. %=5')6 ;arch ( +)%).19T"a&ena$e; in,"inge$ent; test% In &ete"$ining si$i!a"it* an& likelihood of confusion) o#" iscont"o!!ing% "sian 4er,inals !nc. v. Phila, !nsurance Co. !nc. Cno0 Chartis Philippines!nsurance !nc.D@ Phila, !nsurance Co. !nc. Cno0 Chartis Philippines !nsurance !nc.D v.West0ind Shipping Corporation and "sian 4er,inals !nc.@ West0ind ShippingCorporation v. Phila,!nsurance Co. !nc. and "sian 4er,inals !nc%) G%R% Nos%1D11A3I1D12A2I1D131/) J#!* 20) 2013%2012Ca""iage o, Goo&s * Sea Act; +"esc"i+tion% The COGSA is the a++!ica!e !a( ,o" a!!cont"acts ,o" ca""iage o, goo&s * sea to and from 'hilippine ports in ,o"eign t"a&e; it isth#s the !a(that the Co#"t sha!! consi&e" in the +"esent case since the ca"go(ast"ans+o"te& ,"o$ B"a7i! to the 1hi!i++ines%Un&e" Section 3=A> o, theCOGSA)the ca""ie" is &ischa"ge&,"o$ !iai!it* ,o" !osso"&a$age to the ca"go 3#n!ess thesuitis "o#ght"ithin one year after delivery of thegoods or the date "hen the goods should have been delivered.4 J#"is+"#&ence) ho(e'e")"ecogni7e& the 'a!i&it* o, an ag"ee$ent et(een the ca""ie" an& the shi++e"Iconsigneee5ten&ing the one;*ea" +e"io& to ,i!e a c!ai$% Ben>a,in Cua CCua 2ian 4ekD vs. Walle,Philippines Shipping !nc. and "dvance Shipping Corporation G.R. $o. %&%((&. *uly %%+)%+%21Ca""iageo,Goo&s*Sea Act =COGSA>;non;a++!icai!it*o,+"esc"i+tion+e"io&toa""ast"e o+e"ato"%Un&e" the COGSA) the ca""ie" an& the shi+ $a* +#t #+ the &e,ense o,+"esc"i+tion i, the action ,o" &a$ages is not "o#ght "ithin one year after the delivery ofthe goods or the date "hen the goods should have been delivered%It has een he!& thatnot on!* the shi++e") #t a!so the consignee o" !ega! ho!&e" o, the i!! $a* in'oke the+"esc"i+ti'e +e"io&% ?o(e'e") the COGSA &oes not $ention that an a""ast"e o+e"ato" $a*in'oke the +"esc"i+ti'e +e"io& o, one *ea"; hence) itdoes not coverthearrastreoperator. !nsurance Co,pany of $orth",ericavs. "sian4er,inals !nc. G.R. $o.%8)&86 9ebruary %' +)%+.COGSA; a&o"&e" s#"'e*% As ea"!*as No'e$e" 2/) 2002) the &ate o, the !ast(ith&"a(a! o, the goo&s ,"o$ the a""ast"e o+e"ato") "es+on&ent ATI (as a!e to 'e"i,* that,i'e =-> +ackages o, the shi+$ent (e"e in a& o"&e" (hi!e in its c#sto&*% The ce"ti,icate o,non;&e!i'e"* "e,e""e& to in the Cont"act is si$i!a" to o" i&entica! (ith the e5a$ination"e+o"t on the "e6#est ,o" a& o"&e" s#"'e*%Like in the case o, $e0 Fealand !nsuranceCo,pany #td. v. $avarro) the 'e"i,ication an& asce"tain$ent o, !iai!it* * "es+on&entATI ha&eenacco$+!ishe&(ithinthi"t*=30>&a*s,"o$the&ateo,&e!i'e"*o,the+ackage to the consignee an& (ithin ,i,teen =1-> &a*s ,"o$ the &ate o, iss#ance * theCont"acto" ="es+on&ent ATI> o, thee5a$ination"e+o"t onthe"e6#est ,o" a&o"&e"s#"'e*.A!tho#gh the ,o"$a! c!ai$ (as ,i!e& e*on& the 1-;&a* +e"io& ,"o$ the iss#anceo, the e5a$ination "e+o"t on the "e6#est ,o" a& o"&e" s#"'e*)the purpose of the timelimitations for the filing of claims had already been fully satisfied by the re)uest of theconsigneesbroker for abadorder survey andbytheexaminationreport of thearrastre operator on the result thereof, as the a""ast"e o+e"ato" ha& eco$e a(a"e o, an&ha& 'e"i,ie& the ,acts gi'ing "ise to its !iai!it*% ?ence) the a""ast"e o+e"ato" s#,,e"e& no+"eE(hich+"o'i&es,o"aone;*ea"+e"io&o,!i$itation on c!ai$s ,o" !oss o,) o" &a$age to) ca"goes s#staine& "ing t"ansit E $a* ea++!ie&s#++!eto"i!*tothecaseat a"%4 Walle,Philippines Shipping !nc. vs. S.R.9ar,s !nc. G.R. $o. %=%865 *uly 5 +)%).G"eight ,o"(a"&e";i!! o, !a&ing%A bill of lading is a "ritten ackno"ledgement of thereceipt of goods an& an agreement to transport and to deliver them at a specified placeto a person named or on his or her order. It o+e"ates oth as a receipt an& as a contract% It is a receipt ,o" the goo&s shi++e& an& a contract to t"ans+o"t an& &e!i'e" the sa$e asthe"ein sti+#!ate&% As a "ecei+t) it "ecites the &ate an& +!ace o, shi+$ent) &esc"ies thegoo&sasto6#antit*)(eight) &i$ensions) i&enti,ication$a"ks) con&ition) 6#a!it*)an&'a!#e% As a cont"act) it na$es the cont"acting +a"ties) (hich inc!#&e the consignee; ,i5esthe "o#te) &estination) an& ,"eight "ate o" cha"ges; an& sti+#!ates the "ights an& o!igationsass#$e& * the +a"ties%Bns0orth 4ransportation !nternational CPhils.D !nc. vs. Court of"ppeals and Pioneer !nsurance and Surety Corporation G.R. $o. %==+') *uly += +)%)G"eight ,o"(a"&e";&e,inition%The te"$ 3,"eight ,o"(a"&e"4 "e,e"s to a ,i"$ ho!&ing itse!,o#t to the gene"a! +#!ic =othe" than as a +i+e!ine) "ai!) $oto") o" (ate" ca""ie"> to +"o'i&et"ans+o"tation o, +"o+e"t* ,o" co$+ensation an&) in the o"&ina"* co#"seo,its #siness)=1> to asse$!e an& conso!i&ate) o" to +"o'i&e ,o" asse$!ing an& conso!i&ating)shi+$ents) an& to +e",o"$ o" +"o'i&e ,o" "eak;#!k an& &ist"i#tion o+e"ations o, theshi+$ents; =2> to ass#$e "es+onsii!it* ,o" the t"ans+o"tation o, goo&s ,"o$ the +!ace o,"ecei+t tothe+!aceo,&estination;an&=3>to#se,o"an*+a"t o,thet"ans+o"tationaca""ie" s# the !i6#i&ato" $a* se!! the +"o+e"t* an& satis,* the sec#"e& c"e&ito"2s enti"ec!ai$ ,"o$ the +"ocee&s o, the sa!e; o"=3> the sec#"e& c"e&ito" $a* en,o"ce the !ien o" ,o"ec!ose on the +"o+e"t* +#"s#antto a++!ica!e !a(s%In this case) 1NB e!ecte& to $aintain its "ights #n&e" the sec#"it* o" !ien; hence) its "ightto ,o"ec!ose the $o"tgage& +"o+e"ties sho#!& e "es+ecte&) in !ine (ith o#"29+"ono#nce$ent in Cons#e!o Meta! Co"+o"ation% ;anuel .. :ngson *r. Cin his capacity as the#iquidator of "RC"; E Co. !nc.D vs. Philippine $ational Bank G.R. $o. %&%%(+ "ugust %' +)%+%Li1uidation) preference for unpaid !ages. As to +etitione"2s a"g#$ent on the "ight o,,i"st +"e,e"ence as "ega"&s #n+ai& (ages) the Co#"t has e!#ci&ate& in the case o,Fe'e!o+$ent Bank o, the 1hi!i++ines '% NLRC that a &istinction sho#!& e $a&e et(eena +"e,e"ence o, c"e&it an& a !ien% A +"e,e"ence a++!ies on!* to c!ai$s (hich &o not attachto s+eci,ic +"o+e"ties% A !ien c"eates a cha"ge on a +a"tic#!a" +"o+e"t*% The "ight o, ,i"st+"e,e"ence as "ega"&s #n+ai& (ages "ecogni7e& * A"tic!e 110 o, the Lao" Co&e) &oesnot constit#te a !ien on the +"o+e"t* o, the inso!'ent &eto" in ,a'o" o, (o"ke"s% It is #t a+"e,e"ence o, c"e&it in thei" ,a'o") a +"e,e"ence in a++!ication% It is a $etho& a&o+te& to&ete"$ine an& s+eci,* the o"&e" in (hich c"e&its sho#!& e +ai& in the ,ina! &ist"i#tion o,the +"ocee&s o, the inso!'ent2s assets% It is a "ight to a ,i"st +"e,e"ence in the &ischa"ge o,the ,#n&s o, the that the "ecei'e" has "eco$$en&e& a++"o'a!%Rehai!itation is the"e,o"e a'ai!a!e to a co"+o"ation (ho) (hi!e i!!i6#i&) has assets thatcan gene"ate $o"e cash i, #se& in its &ai!* o+e"ations than so!&%Its !i6#i&it* iss#es can ea&&"esse&*a+"actica!e#siness+!anthat(i!! gene"ateeno#ghcashtos#stain&ai!* o+e"ations) has a &e,inite so#"ce o, ,inancing ,o" its +"o+e" an& ,#!! i$+!e$entation)an&ancho"e&on"ea!isticass#$+tionsan&goa!s%This"e$e&*sho#!&e&enie&toco"+o"ations (hose inso!'enc* a++ea"s to e i""e'e"si!e an& (hose so!e +#"+ose is to&e!a* the en,o"ce$ent o, an* o, the "ights o, the c"e&ito"s) (hich is "en&e"e& o'io#s *the ,o!!o(ing@ =a> the asence o, a so#n& an& (o"ka!e #siness +!an; => ase!ess an& #ne5+!aine& ass#$+tions) ta"gets an& goa!s; =c> s+ec#!ati'e ca+ita! in,#sion o" co$+!ete !ack the"eo, ,o" the e5ec#tion o, the#siness +!an;=&> cash ,!o( cannot s#stain &ai!* o+e"ations; an& =e> negati'e net (o"th an& the assets a"e nea" ,#!! &e+"eciation o" ,#!!*&e+"eciate&% Wonder Book Corporation vs. Philippine Bank of Co,,unications G.R. $o. %8&(%= *uly %= +)%+.Corporation) corporate approval for appointment of trustee. Rea&ing ca"e,#!!* theSec"eta"*2s Ce"ti,icate) it is c!ea" that the $ain +#"+ose o, the &i"ecto"s2 Reso!#tion (as toa++oint +etitione" as the ne( t"#stee o, the +"e'io#s!* e5ec#te& an& a$en&e& MTI% Goingth"o#ghtheo"igina! an&the"e'ise&MTI) (e,in&nos#stantia! a$en&$entstothe+"o'isionso,thecont"act% :eag"ee(ith+etitione"that theact o,a++ointingane(t"#stee o, the MTI (as a "eg#!a" #siness t"ansaction% The a++oint$ent necessitate& on!*a &ecision o, at !east a $a he has t"ie& to e5ha#st int"a;co"+o"ate "e$e&ies) i.e%) has $a&e a &e$an& on theoa"& o, &i"ecto"s ,o" the a++"o+"iate "e!ie, #t the !atte" has ,ai!e& o" "e,#se&to hee& his +!ea; an&c>the ca#se o, action act#a!!* &e'o!'es on the co"+o"ation) the ("ong&oing o"ha"$ ha'ing een) o" eing ca#se& to the co"+o"ation an& not to the +a"tic#!a"stockho!&e" "inging the s#it%Inthiscase) +etitione"s) as$e$e"so, theBoa"&o, Fi"ecto"s o, thecon&o$ini#$co"+o"ation before the e!ectionin 6#estion),i!e&aco$+!aint against the ne(!*;e!ecte&$e$e"s o, the Boa"& o, Fi"ecto"s ,o" the *ea"s 2000;200-) 6#estioning the 'a!i&it* o,the e!ection he!& on A+"i! 2) 2000) as it (as a!!ege&!* $a""e& * !ack o, 6#o"#$) an&+"a*ing ,o" the n#!!i,ication o, the sai& e!ection%As state& * the Co#"t o, A++ea!s) +etitione"s2 co$+!aint seek to n#!!i,* the sai& e!ection)an& to +"otect an& en,o"ce thei" in&i'ia! "ight to 'ote% 1etitione"s seek the n#!!i,icationo, the e!ection o, the Boa"& o, Fi"ecto"s ,o" the *ea"s 2000;200-) co$+ose& o,he"ein"es+on&ents) (ho +#she& th"o#gh (ith the e!ection e'en i, +etitione"s ha& a&he has t"ie& to e5ha#st int"a;co"+o"ate "e$e&ies) i%e%) has $a&e a &e$an& ontheoa"&o,&i"ecto"s,o"thea++"o+"iate"e!ie,#t the!atte"has,ai!e&o""e,#se& to hee& his +!ea; an&=c> the ca#se o, action act#a!!* &e'o!'es on the co"+o"ation) the ("ong&oing o"ha"$ ha'ing een) o" eing ca#se& to the co"+o"ation an& not to the +a"tic#!a"stockho!&e" "inging the s#it% #isa, Enterprises !nc. represented by #olita ". Soriano and #olita ". Soriano vs. Banco de 7ro Bnibank!nc. et al. G.R. $o. %6(+=6 "pril +( +)%+.Corporation) doing business !ithout a license.The a++oint$ent o, a &ist"i#to" in the1hi!i++inesisnot s#,,icient toconstit#te3&oing#siness4#n!essit is#n&e" the,#!!cont"o! o, the ,o"eign co"+o"ation%On the othe" han&) i, the &ist"i#to" is an in&e+en&ententit* (hich #*s an& &ist"i#tes +"octs) othe" than those o, the ,o"eign co"+o"ation),o" its o(nna$ean&its o(nacco#nt) the!atte" cannot econsi&e"e&toe&oing#siness in the 1hi!i++ines%It sho#!& e ke+t in $in& that the &ete"$ination o, (hethe" a,o"eign co"+o"ation is &oing #siness in the 1hi!i++ines $#st e s#ch othe" o,,ice"s as $a* e +"o'i&e& ,o" in the *;!a(s%:ith the gi'en ci"c#$stances an& in con,o"$it* (ith ;atling !ndustrial and Co,,ercialCorporationv.Coros) thisCo#"t "#!esthat "es+on&ent (asnot aco"+o"ateo,,ice"o,+etitione" co"+o"ationeca#sehis +ositionas Gene"a! Manage" (as not s+eci,ica!!*$entione&inthe"oste" o, co"+o"ateo,,ice"s inits co"+o"ate*;!a(s% Theena!ingc!a#se in +etitione" co"+o"ation2s *;!a(s e$+o(e"ing its Boa"& o, Fi"ecto"s to c"eatea&&itiona! o,,ice"s) i%e%) Gene"a! Manage") an& the a!!ege& s#se6#ent +assage o, a oa"&"eso!#tion to that e,,ect cannot $ake s#ch +osition a co"+o"ate o,,ice% Mat!ing c!ea"!*en#nciate&that theoa"&o,&i"ecto"shasno+o(e"toc"eateothe"co"+o"ateo,,ices(itho#t ,i"st a$en&ing the co"+o"ate *;!a(s so as to inc!#&e the"ein the ne(!* c"eate&co"+o"ateo,,ice% Tho#ghtheoa"& o,&i"ecto"s $a* c"eate a++ointi'e +ositionsothe"than the +ositions o, co"+o"ate o,,ice"s) the +e"sons occ#+*ing s#ch +ositions cannot e'ie(e& as co"+o"ate o,,ice"s #n&e" Section 2- o, the Co"+o"ation Co&e%In 'ie( the"eo,)this Co#"t ho!&s that #n!ess an& #nti! +etitione" co"+o"ation2s *;!a(s is a$en&e& ,o" theinc!#sion o, Gene"a! Manage" in the !ist o, its co"+o"ate o,,ice"s) s#ch +osition cannot econsi&e"e& as a co"+o"ate o,,ice (ithin the "ea!$ o, Section 2- o, the Co"+o"ation Co&e%;arch !! ;arketing !nc. and #ucila acce+t an&inco"+o"ate) (hen"eco$$en& to the co#"t the &isa!!o(ance o, c!ai$s an& "e "e+o"t tothe co#"t an* ,act asce"taine& * hi$ +e"taining to the ca#ses o, the &eto"2s +"o!e$s),"a#&) +"e,e"ences) &is+ositions) enc#$"ances) $isconct) $is$anage$ent) an&i""eg#!a"ities co$$itte& * the stockho!&e"s) &i"ecto"s) $anage$ent) o" an* othe" +e"son;=/> e$+!o* s#ch +e"son o" +e"sons s#ch as !a(*e"s) acco#ntants) a++"aise"s) an& sta,, asa"enecessa"*in+e",o"$inghis ,#nctions an&ties as "ehai!itation"ecei'e"; =10>$onito" the o+e"ations o, the &eto" an& to i$$e&iate!* "e+o"t to the co#"t an* $ate"ia!53a&'e"se change in the &eto"2s #siness; =11> e'a!#ate the e5isting assets an& !iai!ities)ea"nings an& o+e"ations o, the &eto"; =12> &ete"$ine an& "eco$$en& to the co#"t theest (a*tosa!'agean&+"otect theinte"ests o, thec"e&ito"s) stockho!&e"s) an&thegene"a! +#!ic; =13> st#&* the "ehai!itation +!an +"o+ose& * the &eto" o" an*"ehai!itation +!an s#$itte& "ing the +"ocee&ings) togethe" (ith an* co$$ents $a&ethe"eon; =10> +"ohiit an& "e+o"t to the co#"t an* enc#$"ance) t"ans,e") o" &is+osition o,the &eto"2s +"o+e"t* o#tsi&e o, the o"&ina"* co#"se o, #siness o" (hat is a!!o(e& * theco#"t; =1-> +"ohiit an& "e+o"t to the co#"t an* +a*$ents o#tsi&e o, the o"&ina"* co#"se o,#siness; =1A> ha'e #n!i$ite& access to the &eto"2s e$+!o*ees) +"e$ises) ooks) "eco"&s)an& ,inancia! &oc#$ents "ing #siness ho#"s; =1.> ins+ect) co+*) +hotoco+*) o"+hotog"a+h an* &oc#$ent) +a+e") ook) acco#nt) o" !ette") (hethe" in the +ossession o,the &eto" o" othe" +e"sons; =1D> gain ent"*into an*+"o+e"t*,o" the +#"+ose o,ins+ecting) $eas#"ing) s#"'e*ing) o" +hotog"a+hing it o" an* &esignate& "e!e'ant o "eco$$en& an*$o&i,ication o, an a++"o'e&"ehai!itation +!an as he $a* &ee$ a++"o+"iate; =23> "ing to the attention o, the co#"tan*$ate"ia! changea,,ectingthe&eto"2sai!it*to$eet theo!igations #n&e" the"ehai!itation +!an; =20> "eco$$en& the a++oint$ent o, a $anage$ent co$$ittee in thecases +"o'i&e& ,o" #n&e" 1"esi&entia! Fec"ee No% /02;A) as a$en&e&; =2-> "eco$$en&the te"$ination o, the +"ocee&ings an& the &isso!#tion o, the &eto" i, he &ete"$ines thatthe contin#ance in #siness o, s#ch entit* is no !onge" ,easi!e o" +"o,ita!e o" no !onge"(o"ks to the est inte"est o, the stockho!&e"s) +a"ties;!itigants) c"e&ito"s) o" the gene"a!+#!ic; an& =2A> a++!* to the co#"t ,o" an* o"&e" o" &i"ecti'e that he $a* &ee$ necessa"*o" &esi"a!e to ai& hi$ in the e5e"cise o, his +o(e"s%Siochi 9ishery Enterprises !nc. etal. vs. Bank of the Philippine !slands G.R. $o. %5(8&+. 7ctober %5 +)%%.Rehai!itation; "ehai!itation +!an% The "ehai!itation +!an is an in&is+ensa!e"e6#i"e$ent in co"+o"ate "ehai!itation +"ocee&ings% Section - o, the R#!es en#$e"atesthe essentia! "e6#isites o, a "ehai!itation +!an@The "ehai!itation +!an sha!! inc!#&e =a>the&esi"esinessta"getso"goa!san&the"ationan&co'e"ageo,the"ehai!itation; => the te"$s an& con&itions o, s#ch "ehai!itation (hich sha!! inc!#&e the $anne"o, its i$+!e$entation) gi'ing e "ega"& to the inte"ests o, sec#"e& c"e&ito"s; =c> the $ate"ia! ,inancia! co$$it$ents to s#++o"t the "ehai!itation +!an; =&>the$eans,o"thee5ec#tiono,the"ehai!itation+!an) (hich$a*inc!#&econ'e"sion o, the &ets o" an* +o"tion the"eo, to e6#it*) "est"#ct#"ing o, the&ets) &acion en +ago) o" sa!e o, assets o" o, the cont"o!!ing inte"est; =e> a!i6#i&ationana!*sis that esti$ates the+"o+o"tiono, thec!ai$s that thec"e&ito"s an&sha"eho!&e"s (o#!& "ecei'e i, the &eto"2s +"o+e"ties (e"e!i6#i&ate&; an& =,>s#chothe""e!e'antin,o"$ationtoena!ea"easona!ein'esto"to$akeanin,o"$e& &ecision on the ,easii!it* o, the "ehai!itation +!an%The Co#"t notes that +etitione"s ,ai!e& to inc!#&e a !i6#i&ation ana!*sis in thei""ehai!itation +!an%Siochi 9ishery Enterprises !nc. et al. vs. Bank of the Philippine !slands G.R. $o.%5(8&+. 7ctober %5 +)%%. Co"+o"ations; !iai!it* o, o,,ice"s in gene"a!%O!igations inc#""e& * co"+o"ate o,,ice"s)actingas s#chco"+o"ateagents) a"enot thei"s #t the&i"ect acco#ntai!ities o, theco"+o"ationthe*"e+"esent% As s#ch) the*sho#!&not e gene"a!!*he!&'ote ,o" o" assent to 8+atent!*9 #n!a(,#! acts o, the co"+o"ation;=>act ina&,aitho"(ithg"ossneg!igencein&i"ectingtheco"+o"atea,,ai"s;=c>a"e g#i!t* o, con,!ict o, inte"est to the +"e #t not $o"e than ,i,t* tho#san& +esos=1-0)000>) o" i$+"ison$ent o,at !east t(o =2> *ea"s #t not $o"e than ,i'e =-> *ea"s) o" oth) in the &isc"etion o,theco#"t% Incases o, secon&an&s#se6#ent con'iction#n&e" this Act) the+ena!t* sha!! e oth ,ine an& i$+"ison$ent as +"o'i&e& he"ein%G#"the"$o"e) the+et"o!e#$an&Io" +et"o!e#$+"octs) s#&a*sa,te"a""aign$ent%:hen the o,,en&e" is a co"+o"ation) +a"tne"shi+) o" othe" the +"esi&ent) =2> gene"a! $anage") =3> $anaging +a"tne") =0> s#ch othe" o,,ice" cha"ge& (ith the $anage$ent o, the #siness a,,ai"s o, theco"+o"ation o" the e$+!o*ee "es+onsi!e ,o" s#ch 'io!ation% A co$$on th"ea& o, the ,i"st ,o#" en#$e"ate& o,,ice"s is the ,act that the* $anage the#siness a,,ai"s o, the co"+o"ation o" ;*ea" (in&ing;#+ +e"io& o, RMC) theBoa"& o, T"#stees o, RMC1RG $a* &o no $o"e than sett!e an& c!ose the a,,ai"s o, theG#n&%The Boa"& "etains its a#tho"it* to act on eha!, o, its $e$e"s) albeitin a !i$ite&ca+acit*%It $a* co$$ence s#its on eha!, o, its $e$e"s #t not contin#e $anaging theG#n& ,o" +#"+oses o, $a5i$i7ing +"o,its%?e"e) the Boa"&2s act o, iss#ing the Reso!#tiona#tho"i7ing +etitione" to "e!ease the G#n& to its ene,icia"ies is sti!! +a"t o, the !i6#i&ation+"ocess) that is) satis,action o, the !iai!ities o, the 1!an) an& &oes not a$o#nt to &oing#siness%?ence) it (as +"o+e"!* (ithin the Boa"&2s +o(e" to +"o$#!gate%;etropolitanBank E trust Co,pany !nc. vs. 4he Board of 4rustees of Riverside ;ills Corp. Providentand Retire,ent 9und et al. G.R. $o. %&=5'5 Septe,ber 8 +)%).Co"+o"ation; !iai!it*o,o,,ice"san&&i"ecto"s% Foct"ine&ictatesthat aco"+o"ationisin'este&*!a((itha+e"sona!it*se+a"atean&&istinct ,"o$thoseo, the +e"sonsco$+osing it) s#ch that) sa'e ,o" ce"tain e5ce+tions) co"+o"ate o,,ice"s (ho ente"e& intocont"acts in eha!, o, the co"+o"ation cannot e he!& +e"sona!!* !ia!e ,o" the !iai!ities o,the !atte"%1e"sona! !iai!it* o, a co"+o"ate &i"ecto") t"#stee) o" o,,ice") a!ong =a!tho#gh notnecessa"i!*> (ith the co"+o"ation) $a* 'a!i&!* attach) as a "#!e) on!* (hen B =1>he assents to a +atent!* #n!a(,#! act o, the co"+o"ation) o" (hen he is g#i!t*o,a&,aitho"g"ossneg!igencein&i"ectingitsa,,ai"s) o"(henthe"eisacon,!ict o, inte"est "es#!ting in &a$ages to the co"+o"ation) its stockho!&e"s) o"othe" +e"sons; =2> he consents to the iss#ance o, (ate"e& &o(n stocks o" (ho) ha'ingkno(!e&gethe"eo,) &oesnot ,o"th(ith,i!e(iththeco"+o"atesec"eta"*his("itten o the !oca! "oke" is an in&e+en&ent cont"acto" an& not an agent o, +etitione"%In the +"esent case) +etitione" is a ,o"eign co$+an* $e"e!* i$+o"ting $o!asses ,"o$ a1hi!i++inee5+o"te"% A ,o"eignco$+an*that $e"e!*i$+o"tsgoo&s,"o$a1hi!i++inee5+o"te") (itho#t o+ening an o,,ice o" a++ointing an agent in the 1hi!i++ines) is not &oing#siness in the 1hi!i++ines%Cargill !nc. the a!te"ation is (itho#t the consent o, the ins#"e";0> the a!te"ation is $a&e * $eans (ithin the ins#"e&2s cont"o!; an&-> the a!te"ation inc"eases the "isk o, !oss%In the case at ench) a!! these ci"c#$stances a"e +"esent% It (as c!ea"!* esta!ishe& thatthe "ene(a! +o!ic*sti+#!ate&that theins#"e&+"o+e"ties (e"e!ocate&at the San*o,acto"*; that 1A1 "e$o'e& the +"o+e"ties (itho#t the consent o, Ma!a*an; an& that thea!te"ation o, the !ocation inc"ease& the "isk o, !oss% ;alayan !nsurance Co,pany !nc. v. P"P co.#td. CPhilippine BranchD) G%R% No% 200.D0) A#g#st .) 2013%Insurance) collateral source rule.As +a"t o, A$e"ican +e"sona! inthe 1/D/ Bon&s ha'e e5+i"e& an& 2> the 1//0 Bon& no'ates the 1/D/ Bon&s% The Co#"to, A++ea!s he!& that the 1/D/ on&s (e"e e,,ecti'e on!* ,o" one =1> *ea") as e'i&ence& *the "ecei+ts on the +a*$ent o, +"e$i#$s% The S#+"e$e Co#"t &i& not ag"ee%The o,,icia! "ecei+ts in 6#estion se"'e as +"oo, o, +a*$ent o, the +"e$i#$ ,o" one *ea"on each s#"et* on&% It &oes not) ho(e'e") a#to$atica!!* $ean that the s#"et* on& ise,,ecti'e ,o" on!* one =1> *ea"%In ,act) the e,,ecti'it* o, the on& is not (ho!!* &e+en&enton the +a*$ent o, +"e$i#$%Section 1.. o, the Ins#"ance Co&e e5+"esses@Sec% 1..% The s#"et* is entit!e& to +a*$ent o, the +"e$i#$ as soon as the cont"acto, s#"et*shi+o"on&is+e",ecte&an& &e!i'e"e&tothe o!igo"% No cont"acto,s#"et*shi+ o" on&ing sha!! e 'a!i& an& in&ing #n!ess an& #nti! the +"e$i#$the"e,o" has een +ai&) e5ce+t (he"e the o!igee has acce+te& the on&) in (hichcase the on& eco$es 'a!i& an& en,o"cea!e i""es+ecti'e o, (hethe" o" not the+"e$i#$ has een +ai& * the o!igo" to the s#"et*@1"o'i&e&) That i, the cont"acto, s#"et*shi+ o" on& is not acce+te& *) o" ,i!e& (ith the o!igee) the s#"et* sha!!co!!ect on!* "easona!e a$o#nt) not e5cee&ing ,i,t* +e" cent#$ o, the +"e$i#$e the"eon as se"'ice ,ee +!#s the cost o, sta$+s o" othe" ta5es i$+ose& ,o" theiss#ance o, the cont"act o" on&@ 1"o'i&e&) ho(e'e") That i, the non;acce+tance o,theon&eetothe,a#!t o"neg!igenceo,thes#"et*)nos#chse"'ice,ee)sta$+s o" ta5es sha!! e co!!ecte&%Country Bankers !nsurance Corporation v. "ntonio #ag,an G.R. $o. %='68& *uly %( +)%%.Ins#"ance;+"esentation o, +o!ic* as a con&ition ,o" "eco'e"* * ins#"ance co$+an*%The+"esentation in e'i&ence o, the $a"ine ins#"ance +o!ic* is not in&is+ensa!e e,o"e theins#"e" $a* "eco'e" ,"o$ the co$$on ca""ie" the ins#"e& 'a!#e o, the !ost ca"go in thee5e"cise o, its s#"ogato"*"ight% The s#"ogation"ecei+t) *itse!,) is s#,,icient toesta!ish the a$o#nt +ai& to sett!e the ins#"ance c!ai$% The "ight o, s#"ogation acc"#essi$+!* #+on +a*$ent * the ins#"ance co$+an* o, the ins#"ance c!ai$%In Inte"nationa!Containe" Te"$ina! Se"'ices) Inc% '%GGUIns#"anceCo"+o"ation) theS#+"e$eCo#"te5+!aine&@In&ee&) to the o(ne" o, the $e"chan&iseso!&) (hi!e the secon& "e,e"s to the $e"chan&ise "ecei'e& #n&e" the o!igation to 3"et#"n4it =&e'o!'e"a> to the o(ne"% 2ur 4in :ang v. People of the Philippines) G%R% No% 1/-11.) A#g#st 10)2013%%rustreceipts. distinguishedfromloan.:henoth+a"tiesente"intoanag"ee$entkno(ing ,#!!* (e!! that the "et#"n o, the goo&s s# ,"o$ the $o$ent the $ate"ia!s (e"e #se& ,o"the go'e"n$ent +"o o, the +#"chase +"ice o" ac6#isition83cost) inc!#&ing an* inci&enta! e5+enses an& a $a"gin o, +"o,it o'e" an o!igato"* +e"io&o, not !ess than t(o =2> *ea"s "ing (hich the !essee has the "ight to ho!& an& #se the!ease& +"o+e"t* (ith the "ight to e5+ense the !ease "enta!s +ai& to the !esso" an& ea"s thecost o, "e+ai"s) $aintenance) ins#"ance an& +"ese"'ation the"eo,) #t (ith no o!igation o"o+tion on his +a"t to +#"chase the !ease& +"o+e"t* ,"o$ the o(ne";!esso" at the en& o, the!ease cont"act%Th#s) in a t"#e ,inancia! !easing) (hethe" #n&e" RA -/D0 o" RA D--A) a ,inance co$+an*+#"chases on eha!, o, a cash;st"a++e& !essee the e6#i+$ent the !atte" (ants to #* #t)e to ,inancia! !i$itations) is inca+a!e o, &oing so% The ,inance co$+an* then !eases thee6#i+$ent to the !essee in e5change ,o" the !atte"2s +e"io&ic +a*$ent o, a ,i5e& a$o#nt o,"enta!%In this case) ho(e'e") TMI a!"ea&* o(ne& the s# "e+"icing takes e,,ect on!* #+on So!i&ank2s ("itten notice to 1e"$anent o, thene( inte"est "ate; an& =3> 1e"$anent has the o+tion to +"e+a* its !oan i, 1e"$anent an& So!i&ank &onot ag"ee on the ne( inte"est "ate% The +h"ases 3i""e'oca!* a#tho"i7e)4 3at84an* ti$e4 an&3a&