Bad Faith

It is factual and evidentiary. It does not mean bad judgment or negligence because it imports a dishonest purpose or some moral obliquity and conscious wrongdoing. It means breach of a known duty through some ill motive or interest. It partakes of the nature of fraud. Inability to pay obligation is not synonymous with fraud. […]

Gross Negligence

From the Court’s standpoint, the defendant’s casual manner, insouciance and nonchalance, nay, indifference, to the predicament of the distressed corporation glaringly exhibited a lackadaisical attitude from a top office of a corporation, a conduct totally abhorrent in the corporate world, considering the fact that he is not a novice, but a seasoned businessman in his […]

Wesleyan University-Phils. (WUP) Vs. Maglaya Digest

Facts Guillermo Maglaya was both appointed and elected as Board Member of Wesleyan University Phils. in 2004. He was then elected as President in 2005 with a 5-year term (2005 to 2010). In 2008, the Bishops of the Methodist Church apprised all members that renewal shall only be approved by them. Election of new members […]

Matling Industrial vs. Coros

Facts Ricardo Coros was VP for Finance and Admin of Matling Corp and was dismissed by the latter. In Aug 2000, Coros filed a complaint for illegal suspension and illegal dismissal against Matling in NLRC Iligan City. Matling Corp moved to dismiss the complaint on the ground that it is the SEC which has the […]

Marc II Marketing vs. Alfredo Joson

Facts Lucila is the President of Marc Marketing. She engages the services of Alfredo where the latter received compensation. When Marc Marketing is being winded up, she designated Alfredo as her General Manager. In 1994, Marc II was officially incorporated while Marc Marketing was made non-operational. However, Alfredo continued to discharge his duties under Marc […]

Doctrine of Apparent Authority

The Doctrine of Apparent Authority is applied when a corporation knowingly permits one of its officers or agent to act within the scope of apparent authority. This doctrine is present when the corp. holds the agent out to the public as someone who possesses the power to do such acts. As a consequence, the corporation […]

Advance Paper Corp. vs. Arma Traders Corp. Digest

Advance Paper Corp. (creditor) vs. Arma Traders Corp. (debtor), G.R. 176897 Dec. 11, 2013 Facts Arma Traders is a distributor of school of supplies, and has been engaging with Advance Paper as its supplier for 14 years. In 1994, Pres. Tan and Treasurer Uy, in representation of Arma Traders, availed a total of P15.13M worth […]

People’s Aircargo vs. CA Digest (1998)

If a corporation knowingly permits one of its officers or agent to act within the scope of an apparent authority, it holds him out to the public as possessing the power to do those acts and is estopped to deny such authority to the officer or agent.  People’s Aircargo vs. CA on Doctrine of Apparent Authority […]