jardinedavis vs jrb

7/23/2019 Jardinedavis vs Jrb

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SECOND DIVISION

JARDINE DAVIES, INC., G.R. No. 151438

Petitioner,

Present:

PUNO, J ., Chairman,

AUSTRIA-MARTINEZ,

versus CALLEJO, SR.,

TINGA, an

C!ICO-NAZARIO, JJ.

JRB REALTY, INC.,

Res"onent. Pro#u$%ate:

Ju$& '(, )**(+ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - +

D E C I S I O N

CALLEJO, SR., J .:

eore us is a "etition or revie o t/e 0e1ision 2'3 o t/e Court o A""ea$s

4CA5 in CA-G.R. C6 No. (7)*' air#in% in toto t/at o t/e Re%iona$ Tria$ Court

4RTC5 in Civi$ Case No. 8*-)9 or s"e1ii1 "eror#an1e; an t/e Reso$ution ate

Januar& '', )**) en&in% t/e #otion or re1onsieration t/ereo.

http://sc.judiciary.gov.ph/jurisprudence/2005/jul2005/151438.htm#_ftn1




T/e a1ts are as o$$os:

In '88-'8<*, res"onent JR Rea$t&, In1. =ui$t a nine-store& =ui$in%,

na#e $an1o Center, on its "ar1e$ o $an $o1ate at ''8 A$aro St., Sa$1eo

6i$$a%e, Ma>ati Cit&. An air 1onitionin% s&ste# as neee or t/e $an1o La

?ir# /ouse at t/e se1on $oor o t/e =ui$in%. On Mar1/ '9, '8<*, t/e

res"onents E+e1utive 6i1e-Presient, Jose R. $an1o, a11e"te t/e 1ontra1t

@uotation o Mr. A.G. Morrison, Presient o Air1on an Reri%eration Inustries,

In1. 4Air1on5, or to 4)5 sets o ?eers Aa"to#ati1 9*,*** >1a$ 4Coe: '*-TR5

air 1onitionin% e@ui"#ent it/ a net tota$ se$$in% "ri1e o P88,(<.**.

2)3 T/ereater, to 4)5 =ran ne "a1>a%e air 1onitioners o '* tons 1a"a1it& ea1/

to e$iver 9*,*** >1a$ or ')*,*** TU!293 ere insta$$e =& Air1on. B/en t/e

units it/ rotar& 1o#"ressors ere insta$$e, t/e& 1ou$ not e$iver t/e esire

1oo$in% te#"erature. 0es"ite severa$ aust#ents an 1orre1tive #easures, t/e

res"onent 1on1ee t/at ?eers Air Conitionin% USAs te1/no$o%& or rotar&

1o#"ressors or =i% 1a"a1it& 1onitioners $i>e t/ose insta$$e at t/e $an1o Center

/a not &et =een "ere1te. T/e "arties t/ere=& a%ree to re"$a1e t/e units it/

re1i"ro1atin%Dse#i-/er#eti1 1o#"ressors instea. In a Letter ate Mar1/ ),

'8<',273 Air1on state t/at it ou$ =e re"$a1in% t/e units 1urrent$& insta$$e it/

ne ones usin% rotar& 1o#"ressors, at t/e ear$iest "ossi=$e ti#e. Re%retta=$&,

/oever, it 1ou$ not s"e1i& a ate /en e$iver& 1ou$ =e ee1te.

Te#"Contro$ S&ste#s, In1. 4a su=siiar& o Air1on unti$ '8<5 unertoo> t/e

#aintenan1e o t/e units, in1$usive o "arts an servi1es. In O1to=er '8<, t/e









res"onent $earne, t/rou%/ nes"a"er as,2(3 t/at Ma+i# Inustria$ an

Mer1/anisin% Cor"oration 4Ma+i#, or s/ort5 as t/e ne an e+1$usive $i1ensee

o ?eers Air Conitionin% USA in t/e P/i$i""ines or t/e #anua1ture,

istri=ution, sa$e, insta$$ation an #aintenan1e o ?eers air 1onitioners. T/e

res"onent re@ueste t/at Ma+i# /onor t/e o=$i%ation o Air1on, =ut t/e $atter

reuse. Consierin% t/at t/e ten-&ear "erio o "res1ri"tion as ast a""roa1/in%,

to e+"ire on Mar1/ '9, '88*, t/e res"onent t/en institute, on Januar& )8, '88*,

an a1tion or s"e1ii1 "eror#an1e it/ a#a%es a%ainst Air1on Reri%eration

Inustries, In1., ?eers Air Conitionin% USA, In1., Ma+i# Inustria$

Mer1/anisin% Cor"oration an "etitioner Jarine 0avies, In1.23 T/e $atter as

i#"$eae as eenant, 1onsierin% t/at Air1on as a su=siiar& o t/e "etitioner.

T/e res"onent "ra&e t/at u%#ent =e renere, as o$$os:







'. Orerin% t/e eenants to oint$& an severa$$& at t/eir a11ount an

e+"ense e$iver, insta$$ an "$a1e in o"eration to =ran ne units o ea1/ '*-

tons 1a"a1it& ?eers unitar& "a1>a%e air 1onitioners it/ ?eers USAste1/no$o%& "ere1te rotar& 1o#"ressors to a$a&s e$iver 9*,*** >1a$ or

')*,*** TU! to t/e se1on $oor o t/e $an1o Center =ui$in% at ''8 A$aro

St., Sa$1eo 6i$$a%e, Ma>ati, Metro Mani$a;

). Orerin% eenants to oint$& an severa$$& rei#=urse "$ainti not

on$& t/e su#s o P7'(,''<.8( or unsave e$e1tri1it& ro# )' st O1to=er '8<' tot/ Januar& '88* anP88,)<. or re"air 1osts o t/e to servi1e units ro#

t/ Mar1/ '8< to ''t/ Januar& '88*, it/ $e%a$ interest t/ereon ro# t/e i$in%

o t/is Co#"$aint unti$ u$$& rei#=urse, =ut a$so $i>e unsave e$e1tri1it& 1osts

an $i>e re"air 1osts t/erero# unti$ Pra&er No. ' a=ove s/a$$ /ave =een1o#"$ie it/;

9. Orerin% eenants to oint$& an severa$$& "a&

"$aintis P'(*,***.** attorne&s ees an ot/er 1osts o $iti%ation, as e$$ ase+e#"$ar& a#a%es in an a#ount not $ess t/an or e@ua$ to Pra&er ) a=ove; an

7. Grantin% "$ainti su1/ ot/er an urt/er re$ie as s/a$$ =e ust an

e@uita=$e in t/e "re#ises.23

O t/e our eenants, on$& t/e "etitioner i$e its Anser. T/e 1ourt i not

a1@uire urisi1tion over Air1on =e1ause t/e $atter 1ease o"erations, as its

1or"orate $ie ene on 0e1e#=er 9', '8<.2<3

U"on #otion, eenants ?eers

Air Conitionin% USA an Ma+i# ere e1$are in eau$t.283

On Ma& ', '88, t/e RTC renere its 0e1ision, t/e is"ositive "ortion o

/i1/ reas:

B!ERE?ORE, u%#ent is /ere=& renere orerin% eenants Jarine

0avies, In1., ?eers Air Conitionin% USA, In1. an Ma+i# Inustria$ an

Mer1/anisin% Cor"oration, oint$& an severa$$&:

'. To e$iver, insta$$ an "$a1e into o"eration t/e to 4)5 =ran

ne units o ?eers unitar& "a1>a%e air1onitionin% units ea1/o '* tons 1a"a1it& it/ rotar& 1o#"ressors to e$iver 9*,***

>1a$ or ')*,*** TU! to t/e se1on $oor o t/e $an1o Center

=ui$in%, or to "a& "$ainti t/e 1urrent "ri1e or to su1/ units;










). To rei#=urse "$ainti t/e a#ount o P((,(('.(( as an or t/e

unsave e$e1tri1it& =i$$s ro# O1to=er )', '8<' u" to A"ri$ 9*,

'88(; an anot/er a#ount o P'<(,8('. as an or re"air 1osts;

9. To "a& "$ainti P(*,***.** as an or attorne&s ees; an

7. Cost o suit.2'*3

T/e "etitioner i$e its noti1e o a""ea$ it/ t/e CA, a$$e%in% t/at t/e tria$

1ourt erre in /o$in% it $ia=$e =e1ause it as not a "art& to t/e 1ontra1t =eteen

JR Rea$t&, In1. an Air1on, an t/at it /a a "ersona$it& se"arate an istin1t ro#

t/at o Air1on.

On Mar1/ )9, )***, t/e CA air#e t/e tria$ 1ourts ru$in% in toto; /en1e,

t/is "etition.

T/e "etitioner raises t/e o$$oin% assi%n#ent o errors:I.

T!E COURT O? APPEALS ERRE0 IN !OL0ING JAR0INE LIALE ?OR

T!E ALLEGE0 CONTRACTUAL REAC! O?

AIRCON SOLELF ECAUSE T!E LATTER BAS ?ORMERLF JAR0INESSUSI0IARF.

II.ASSUMING ARGUENDO T!AT AIRCON MAF E CONSI0ERE0 AS

JAR0INES MERE ALTER EGO, T!E COURT O? APPEALS ERRE0 IN

NOT 0ECLARING AIRCONS OLIGATION TO 0ELI6ER T!E TBO 4)5AIRCON0ITIONING UNITS TO JR AS !A6ING EEN

SUSTANTIALLF COMPLIE0 BIT! IN GOO0 ?AIT!.





III.

ASSUMING ARGUENDO T!AT AIRCON MAF E CONSI0ERE0 AS

JAR0INES MERE ALTER EGO, T!E COURT O? APPEALS ERRE0 IN NOT 0ECLARING JRS CAUSES O? ACTION AS !A6ING EEN

ARRE0 F LAC!ES.

I6.ASSUMING ARGUENDO T!AT AIRCON MAF E CONSI0ERE0 AS

JAR0INES MERE ALTER EGO, T!E COURT O? APPEALS ERRE0 IN

?IN0ING JR ENTITLE0 TO RECO6ER ALLEGE0 UNSA6E0ELECTRICITF EPENSES.

6.

T!E COURT O? APPEALS ERRE0 IN !OL0ING JAR0INE LIALE TOPAF ATTORNEFS ?EES.

6I.

T!E COURT O? APPEALS ERRE0 IN NOT !OL0ING JR LIALE TO

JAR0INE ?OR 0AMAGES.

2''3

It is t/e e$$-sett$e ru$e t/at a1tua$ inin%s o t/e tria$ 1ourt, as air#e

=& t/e CA, are a11ore /i%/ res"e1t, even ina$it& at ti#es. !oever, 1onsierin%

t/at t/e a1tua$ inin%s o t/e CA an t/e RTC ere =ase on s"e1u$ation an

1one1tures, unsu""orte =& su=stantia$ evien1e, t/e Court ins t/at t/e instant

1ase a$$s uner one o t/e e+1e"te instan1es. T/ere is, t/us, a nee to 1orre1t t/e

error.

T/e tria$ 1ourt ru$e t/at Air1on as a su=siiar& o t/e "etitioner, an

1on1$ue, t/us: P$aintis o1u#entar& evien1e s/os t/at at t/e ti#e it 1ontra1te it/

Air1on on Mar1/ '9, '8<* 4E+/i=it 05 an on t/e ate t/e revise a%ree#entas rea1/e on Mar1/ ), '8<', Air1on as a su=siiar& o Jarine. T/e "/raseA su=siiar& o Jarine 0avies, In1. as "rinte on Air1ons $etter/ea o its

Mar1/ '9, '8<* 1ontra1t it/ "$ainti 4E+/i=it 0-'5, as e$$ as t/e Air1ons

$etter/ea o Jarines 0ire1tor an Senior 6i1e-Presient A.G. Morrison an

Air1ons Presient in /is Mar1/ ), '8<' $etter to "$ainti 4E+/i=it J-)51onir#in% t/e revise a%ree#ent. Air1ons nes"a"er as o A"ri$ ') an ),





'8<' an a "ress re$ease on Au%ust 9*, '8<) 4E+/i=its E, ? an L5 a$so s/o

t/at eenant Jarine "u=$i1$& re"resente Air1on to =e its su=siiar&.

Re1ors ro# t/e Se1urities an E+1/an%e Co##ission 4SEC5 a$so

revea$ t/at as "er Jarines 0e1e#=er 9', '8< an '8<( ?inan1ia$ State#ents

t/at T/e 1o#"an& a1ts as %enera$ #ana%er o its su=siiaries 4E+/i=it P5.Jarines Conso$iate a$an1e S/eet as o 0e1e#=er 9', '88 i$e it/ t/e

SEC $iste Air1on as its su=siiar& =& onin% 87.9(H o Air1on 4E+/i=it P-'5.

A$so, Air1ons re"ortoria$ Genera$ Inor#ation S/eet as o A"ri$ '8<* an A"ri$'8<' i$e it/ t/e SEC s/o t/at Jarine as 87.97H oner o Air1on

4E+/i=its an R5 an t/at out o seven #e#=ers o t/e oar o 0ire1tors o

Air1on, our 475 are a$so o Jarine.

0eenant Jarines itness, Att&. ?e e$os Santos-uiaoit a#itte t/at

eenant Air1on, rena#e Air1on Reri%eration Inustries, In1. is one o t/e

su=siiaries o Jarine 0avies 4TSN, Se"te#=er )), '88(, ". ')5. S/e a$so

testiie t/at Jarine no#inate, e$e1te, an a""ointe t/e 1ontro$$in% #aorit&o t/e oar o 0ire1tors an t/e /i%/est oi1ers o Air1on 4I=i, "". '*,'9-'75.

T/e ore%oin% 1ir1u#stan1es "rovie ustiia=$e =asis or t/is Court to

isre%ar t/e i1tion o 1or"orate entit& an treat eenant Air1on as "art o t/e

instru#enta$it& o 1o-eenant Jarine.2')3

T/e res"onent 1ourt arrive at t/e sa#e 1on1$usion =asin% its ru$in% on t/e

o$$oin% o1u#ents, to it: 4a5 Contra1tDuotation <-No. <*-'98 ate Mar1/ *9, '8<* 4E+/. 0-

'5;

4=5 Nes"a"er Avertise#ents 4E+/s. E-' an ?-'5;

415 Letter ate Mar1/ ), '8<' o A.G. Morrison, Presient o Air1on, toAtt&. J.R. $an1o 4E+/. J5;

45 Nes ite#s o u$$etin Toa& ate Au%ust 9*, '8<) 4E+/. L5;

4e5 a$an1e S/eet o Jarine 0avies, In1. as o 0e1e#=er 9', '88 $istin%

Air1on as one o its su=siiaries 4E+/. P5;

45 ?inan1ia$ State#ent o Air1on as o 0e1e#=er 9', '8<) an '8<' 4E+/.

S5;

4%5 ?inan1ia$ State#ent o Air1on as o 0e1e#=er 9', '8<' 4E+/. S-'5.2'93








A""$&in% t/e o1trine o "ier1in% t/e vei$ o 1or"orate i1tion, =ot/ t/e

res"onent an tria$ 1ourts 1onvenient$& /e$ t/e "etitioner $ia=$e or t/e a$$e%e

o#issions o Air1on, 1onsierin% t/at t/e $atter as its instru#enta$it& or 1or"orate

a$ter e%o. T/e "etitioner is no =eore us, reiteratin% its eense o se"arateness,

an t/e a1t t/at it is not a "art& to t/e 1ontra1t.

Be in #erit in t/e "etition.



It is an e$e#entar& an una#enta$ "rin1i"$e o 1or"oration $a t/at a

1or"oration is an artii1ia$ =ein% investe =& $a it/ a "ersona$it& se"arate an

istin1t ro# its sto1>/o$ers an ro# ot/er 1or"orations to /i1/ it #a& =e

1onne1te. B/i$e a 1or"oration is a$$oe to e+ist so$e$& or a $au$ "ur"ose, t/e

$a i$$ re%ar it as an asso1iation o "ersons or in 1ase o to 1or"orations, #er%e

t/e# into one, /en t/is 1or"orate $e%a$ entit& is use as a 1$oa> or rau or

i$$e%a$it&.2'73 T/is is t/e o1trine o "ier1in% t/e vei$ o 1or"orate i1tion /i1/

a""$ies on$& /en su1/ 1or"orate i1tion is use to eeat "u=$i1 1onvenien1e,

usti& ron%, "rote1t rau or een 1ri#e.2'(3 T/e rationa$e =e/in "ier1in% a

1or"orations ientit& is to re#ove t/e =arrier =eteen t/e 1or"oration ro# t/e

"ersons 1o#"risin% it to t/art t/e rauu$ent an i$$e%a$ s1/e#es o t/ose /o use

t/e 1or"orate "ersona$it& as a s/ie$ or unerta>in% 1ertain "ros1ri=e a1tivities.2'3

B/i$e it is true t/at Air1on is a su=siiar& o t/e "etitioner, it oes not

ne1essari$& o$$o t/at Air1ons 1or"orate $e%a$ e+isten1e 1an ust =e isre%are.

In Velarde v. Lopez, Inc.,2'3 t/e Court 1ate%ori1a$$& /e$ t/at a su=siiar& /as an

ine"enent an se"arate urii1a$ "ersona$it&, istin1t ro# t/at o its "arent

1o#"an&; /en1e, an& 1$ai# or suit a%ainst t/e $atter oes not =in t/e or#er,

an vice vera. In a""$&in% t/e o1trine, t/e o$$oin% re@uisites #ust =e

esta=$is/e: 4'5 1ontro$, not #ere$& #aorit& or 1o#"$ete sto1> 1ontro$; 4)5 su1/

1ontro$ #ust /ave =een use =& t/e eenant to 1o##it rau or ron%, to

"er"etuate t/e vio$ation o a statutor& or ot/er "ositive $e%a$ ut&, or is/onest a1ts












in 1ontravention o "$aintis $e%a$ ri%/ts; an 495 t/e aoresai 1ontro$ an =rea1/

o ut& #ust "ro+i#ate$& 1ause t/e inur& or unust $oss 1o#"$aine o.2'<3





T/e re1ors =ear out t/at Air1on is a su=siiar& o t/e "etitioner on$&

=e1ause t/e $atter a1@uire Air1ons #aorit& o 1a"ita$ sto1>. It, /oever, oes not

e+er1ise 1o#"$ete 1ontro$ over Air1on; no/ere 1an it =e %at/ere t/at t/e

"etitioner #ana%es t/e =usiness aairs o Air1on. Inee, no #ana%e#ent

a%ree#ent e+ists =eteen t/e "etitioner an Air1on, an t/e $atter is an entire$&

ierent entit& ro# t/e "etitioner .2'83

Jarine 0avies, In1., in1or"orate as ear$& as June )<, '87, 2)*3 is "ri#ari$& a

inan1ia$ an train% 1o#"an&. Its Arti1$es o In1or"oration states a#on% #an&

ot/ers t/at t/e "ur"oses or /i1/ t/e sai 1or"oration as or#e, are as o$$os:

4a5 To 1arr& on t/e =usiness o #er1/ants, 1o##ission #er1/ants, =ro>ers,

a1tors, #anua1turers, an a%ents;

4=5 U"on 1o#"$&in% it/ t/e re@uire#ents o $a a""$i1a=$e t/ereto, to a1tas a%ents o 1o#"anies an unerriters oin% an en%a%in% in an& an a$$ >ins

o insuran1e =usiness.2)'3

On t/e ot/er /an, Air1on, in1or"orate on 0e1e#=er ), '8(),2))3 is a

#anua1turin% ir#. Its Arti1$es o In1or"oration states t/at its "ur"ose is #ain$& -

To 1arr& on t/e =usiness o #anua1turers o 1o##er1ia$ an /ouse/o$a""$ian1es an a11essories o an& or#, "arti1u$ar$& to #anua1ture, "ur1/ase,

se$$ or ea$ in air 1onitionin% an reri%eration "rou1ts o ever& 1$ass an

es1ri"tion as e$$ as a11essories an "arts t/ereo , or ot/er >inre

arti1$es; an to ere1t, or =u&, $ease, #ana%e, or ot/erise a1@uire #anua1tories,

are/ouses, an e"ots or #anua1turin%, asse#=$a%e, re"air an storin%, =u&in%, se$$in%, an ea$in% in t/e aoresai a""$ian1es, a11essories an "rou1ts. 2)93















T/e e+isten1e o inter$o1>in% ire1tors, 1or"orate oi1ers an s/are/o$ers,

/i1/ t/e res"onent 1ourt 1onsiere, is not enou%/ ustii1ation to "ier1e t/e vei$

o 1or"orate i1tion, in t/e a=sen1e o rau or ot/er "u=$i1 "o$i1& 1onsierations.2)73 ut even /en t/ere is o#inan1e over t/e aairs o t/e su=siiar&, t/e o1trine

o "ier1in% t/e vei$ o 1or"orate i1tion a""$ies on$& /en su1/ i1tion is use to

eeat "u=$i1 1onvenien1e, usti& ron%, "rote1t rau or een 1ri#e.2)(3 To

arrant resort to t/is e+traorinar& re#e&, t/ere #ust =e "roo t/at t/e

1or"oration is =ein% use as a 1$oa> or 1over or rau or i$$e%a$it&, or to or>

inusti1e.2)3 An& "ier1in% o t/e 1or"orate vei$ /as to =e one it/ 1aution. 2)3 T/e

ron%oin% #ust =e 1$ear$& an 1onvin1in%$& esta=$is/e. It 1annot ust =e

"resu#e.2)<3













In t/e instant 1ase, t/ere is no evien1e t/at Air1on as or#e or uti$iKe

it/ t/e intention o erauin% its 1reitors or evain% its 1ontra1ts an

o=$i%ations. T/ere as not/in% rauu$ent in t/e a1ts o Air1on in t/is 1ase. Air1on,

as a #anua1turin% ir# o air 1onitioners, 1o#"$ie it/ its o=$i%ation o

"roviin% to air 1onitionin% units or t/e se1on $oor o t/e $an1o Center in

%oo ait/, "ursuant to its 1ontra1t it/ t/e res"onent. Unortunate$&, t/e

"eror#an1e o t/e air 1onitionin% units i not satis& t/e res"onent es"ite

severa$ aust#ents an 1orre1tive #easures. In a Letter 2)83 ate O1to=er )), '8<*,

t/e res"onent even 1on1ee t/at ?eers Air Conitionin% USA /as not &et

"er/a"s "ere1te its te1/no$o%& o rotar& 1o#"ressors, an a%ree to 1/an%e t/e

1o#"ressors it/ t/e se#i-/er#eti1 t&"e. T/us, Air1on su=stitute t/e units it/

servi1ea=$e ones /i1/ e$ivere t/e 1oo$in% te#"erature neee or t/e $a

oi1e. Ater eno&in% ten 4'*5 &ears o its 1oo$in% "oer, res"onent 1annot no

1o#"$ain a=out t/e "eror#an1e o t/ese units, nor 1an it e#an a re"$a1e#ent

t/ereo.

Moreover, it as reversi=$e error to aar t/e res"onent t/e a#ount

o P((,(('.(( re"resentin% t/e a$$e%e 9*H unsave e$e1tri1it& 1osts

an P'<(,8('. as #aintenan1e 1ost it/out s/oin% an& =asis or su1/ aar.

To usti& a %rant o a1tua$ or 1o#"ensator& a#a%es, it is ne1essar& to "rove it/

a reasona=$e e%ree o 1ertaint&, "re#ise u"on 1o#"etent "roo an on t/e =est

evien1e o=taina=$e =& t/e inure "art&, t/e a1tua$ a#ount o $oss.29*3 T/e

res"onent #ere$& =ase its 1ause o a1tion on Air1ons a$$e%e re"resentation t/at







?eers air 1onitioners it/ rotar& 1o#"ressors 1an save as #u1/ as 9*H on

e$e1tri1it& 1o#"are to ot/er =rans. Oere in evien1e ere nes"a"er

avertise#ents "u=$is/e on A"ri$ ') an ), '8<'. T/e res"onent t/en re1ore

its e$e1tri1it& 1onsu#"tion ro# O1to=er )', '8<' u" to A"ri$ 9, '88( an

1o#"ute 9*H t/ereo, /i1/ a#ounte to P((,(('.((. T/e Court ru$es t/at t/is

a#ount is /i%/$& s"e1u$ative an #ere$& /&"ot/eti1a$, an or /i1/ t/e "etitioner

1an not =e /e$ a11ounta=$e.

?irst. T/e res"onent #ere$& re$ie on t/e nes"a"er avertise#ents

s/oin% t/e ?eers ino-t&"e air 1onitioners, /i1/ are ar ierent ro# t/e

=i% 1a"a1it& air 1onitionin% units insta$$e at $an1o Center.

Se1on. Ater su1/ "rint avertise#ents, t/e res"onent inor#e Air1on

t/at it as %oin% to insta$$ an e$e1tri1 #eter to re%ister its e$e1tri1 1onsu#"tion so

as to eter#ine t/e e$e1tri1 1osts not save =& t/e "resent$& insta$$e units it/

se#i-/er#eti1 1o#"ressors. Contrar& to t/e a$$e%ations o t/e res"onent t/at t/is

as in "ursuan1e to t/eir Revise A%ree#ent, no "roo as au1e t/at Air1on

a%ree to t/e res"onents "ro"osition. It as a uni$atera$ a1t on t/e "art o t/e

res"onent, /i1/ Air1on i not o=$i%e or 1o##it itse$ to "a&.

T/ir. Nee$ess to state, t/e a#ounts 1o#"ute are #ere esti#ates

re"resentin% t/e res"onents se$-servin% 1$ai# o unsave e$e1tri1it& 1ost, /i1/

is too s"e1u$ative an 1one1tura$ to #erit 1onsieration. No ot/er "roos, re"orts



or =ases o 1o#"arison s/oin% t/at ?eers Air Conitionin% USA 1ou$ inee

1ut on e$e1tri1it& 1ost =& 9*H ere au1e.

Li>eise, t/ere is no =asis or t/e aar o P'<(,8('. re"resentin%

#aintenan1e 1ost. T/e res"onent #ere$& su=#itte a s1/eu$e29'3 "re"are =& t/e

res"onents a11ountant, $istin% t/e a$$e%e re"air 1osts ro# Mar1/ '8< u" to

June '887. Su1/ evien1e is se$-servin% an 1an not a$so =e %iven "ro=ative

ei%/t, 1onsierin% t/at t/ere are no "roos o re1ei"ts, vou1/ers, etc., /i1/

ou$ su=stantiate t/e a#ounts "ai or su1/ servi1es. A=sent an& #ore

1onvin1in% "roo, t/e Court ins t/at t/e res"onents 1$ai#s are it/out =asis,

an 1annot, t/ereore, =e aare.





Be sustain t/e "etitioners se"arateness ro# t/at o Air1on in t/is 1ase. It

=ears stressin% t/at t/e "etitioner as never a "art& to t/e 1ontra1t. Privit& o

1ontra1ts ta>e ee1t on$& =eteen "arties, t/eir su11essors-in-interest, /eirs an

assi%ns.29)3 T/e "etitioner, /i1/ /as a se"arate an istin1t $e%a$ "ersona$it& ro#

t/at o Air1on, 1annot, t/ereore, =e /e$ $ia=$e.

IN VIEW OF THE FOREGOING, t/e "etition is GRANTED. T/e

assai$e e1ision o t/e Court o A""ea$s, air#in% t/e e1ision o t/e Re%iona$

Tria$ Court isREVERSED an SET ASIDE. T/e 1o#"$aint o t/e res"onent

is DISMISSED. Costs a%ainst t/e res"onent.

SO ORDERED.

ROMEO J. CALLEJO, SR .



jardinedavis vs jrb

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