1.1 pantranco v nlrc.doc

8/13/2019 1.1 Pantranco v NLRC.doc

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THIRD DIVISION

PANTRANCO EMPLOYEES

ASSOCIATION (PEA-PTGWO) and

PANTRANCO RETRENCHEDEMPLOYEES ASSOCIATION

(PANREA),

Petitioners,

- versus -

NATIONAL LABOR RELATIONS

COMMISSION (NLRC), PANTRANCO

NORTH EXPRESS, INC. (PNEI),

PHILIPPINE NATIONAL BANK (PNB),PHILIPPINE NATIONAL BANK-

MANAGEMENT AND DEVELOPMENT

CORPORATION (PNB-MADECOR), and

MEGA PRIME REALTY AND

HOLDINGS CORPORATION (MEGA

PRIME),

Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x

PHILIPPINE NATIONAL BANK,Petitioner,

- versus -

PANTRANCO EMPLOYEES

ASSOCIATION, INC. (PEA-PTGWO),

PANTRANCO RETRENCHED

EMPLOYEES ASSOCIATION

(PANREA) AND PANTRANCO

ASSOCIATION O CONCERNED

EMPLOYEES (PACE), ET AL.,

PHILIPPINE NATIONAL BANK-

MANAGEMENT DEVELOPMENT

CORPORATION (PNB-MADECOR), and

MEGA PRIME REALTY HOLDINGS,

INC.,

G.R. N!. "#$%&'

G.R. N!. "#$#$

Present:

YNARES-SANTIAGO,J.,

Chairperson,

CARPIO,*

CHICO-NAZARIO,

NACHRA, !nd

PERA"TA,JJ.

Pro#u$%!ted:
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Respondents. &!r'( ), +

x------------------------------------------------------------------------------------x

DECISION

NACHRA,J.*

e/ore us !re t0o 'onso$id!ted petitions !ss!i$in% t(e Court o/ Appe!$s

1CA2 3e'ision4)5d!ted 6une 7, +8 !nd its Reso$ution 4+5d!ted 3e'e#9er , +8

in CA-G.R. SP No. 8.

In G.R. N!. "#$%&', t(e P!ntr!n'o E#p$o;ees Asso'i!tion 1PEA2 !nd

P!ntr!n'o Retren'(ed E#p$o;ees Asso'i!tion 1PANREA2 pr!; t(!t t(e CA

de'ision 9e set !side !nd ! ne0 one 9e entered, de'$!rin% t(e P(i$ippine N!tion!$

!n< 1PN2 !nd PN &!n!%e#ent !nd 3eve$op#ent Corpor!tion 1PN-

&!de'or2 =oint$; !nd so$id!ri$; $i!9$e /or t(eP++,+,)8.++ N!tion!$ "!9or

Re$!tions Co##ission 1N"RC2 =ud%#ent in /!vor o/ t(e P!ntr!n'o Nort( E>press,

In'. 1PNEI2 e#p$o;ees?4750(i$e in G.R. N!. "#$#$, PN pr!;s t(!t t(e !u'tion

s!$e o/ t(e P!ntr!n'o properties 9e de'$!red nu$$ !nd void.4@5

T(e /!'ts o/ t(e '!se, !s /ound 9; t(e CA,485!nd est!9$is(ed inRepublic of

the Phils. v. NLRC,45Pantranco North Express, Inc. v. NLRC,45!ndPNB

MAEC!R v. "#,45/o$$o0:

T(e GonB!$es /!#i$; o0ned t0o 'orpor!tions, n!#e$;, t(e PNEI !nd &!'ris

Re!$t; Corpor!tion 1&!'ris2. PNEI provided tr!nsport!tion servi'es to t(e pu9$i',

!nd (!d its 9us ter#in!$ !t t(e 'orner o/ ueBon !nd Rooseve$t Avenues in ueBon

Cit;. T(e ter#in!$ stood on /our v!$u!9$e pie'es o/ re!$ est!te 1


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&!'ris 0!s $!ter ren!#ed !s t(e N!tion!$ Re!$t; 3eve$op#ent Corpor!tion

1N!rede'o2 !nd eventu!$$; #er%ed 0it( t(e N!tion!$ D!re(ousin% Corpor!tion

1N!0!'o2 to /or# t(e ne0 PN su9sidi!r;, t(e PN-&!de'or.

In )8, NI3C so$d PNEI to Nort( E>press Tr!nsport, In'. 1NETI2, !

'o#p!n; o0ned 9; Gre%orio Ar!net! III. In ), PNEI 0!s !#on% t(e sever!$

'o#p!nies p$!'ed under seuestr!tion 9; t(e Presidenti!$ Co##ission on Good

Govern#ent 1PCGG2 s(ort$; !/ter t(e (istori' events in E3SA. In 6!nu!r; ),

PCGG $i/ted t(e seuestr!tion order to p!ve t(e 0!; /or t(e s!$e o/ PNEI 9!'< to

t(e priv!te se'tor t(rou%( t(e Asset Priv!tiB!tion Trust 1APT2. APT t(us too< over

t(e #!n!%e#ent o/ PNEI.

In )+, PNEI !pp$ied 0it( t(e Se'urities !nd E>'(!n%e Co##ission 1SEC2

/or suspension o/ p!;#ents. A #!n!%e#ent 'o##ittee 0!s t(ere!/ter 're!ted

0(i'( re'o##ended to t(e SEC t(e s!$e o/ t(e 'o#p!n; t(rou%( priv!tiB!tion. As

! 'ost-s!vin% #e!sure, t(e 'o##ittee $i


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p!rt, PN sou%(t t(e nu$$i/i'!tion o/ t(e 0rit on t(e %round t(!t it 0!s not ! p!rt;

to t(e $!9or '!se.4)@5 In its T(ird-P!rt; C$!i#, PN !$$e%ed t(!t PN-

&!de'or 0!s inde9ted to t(e /or#er !nd t(!t t(e P!ntr!n'o properties
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0ou$d !ns0er /or su'( de9t. As su'(, t(e s'(edu$ed !u'tion s!$e o/ t(e !/ores!id

properties 0!s not $e%!$$; in order.4)85

On Septe#9er ), ++, t(e "!9or Ar9iter de'$!red t(!t t(e su9=e't

P!ntr!n'o properties 0ere o0ned 9; PN-&!de'or. It 9ein% ! 'orpor!tion 0it( !distin't !nd sep!r!te person!$it;, its !ssets 'ou$d not !ns0er /or t(e $i!9i$ities o/

PNEI. Considerin%, (o0ever, t(!t PN-&!de'or e>e'uted ! pro#issor; note in

/!vor o/ PNEI /or P,@,., t(e 0rit o/ e>e'ution to t(e e>tent o/ t(e s!id

!#ount 0!s 'on'erned 0!s 'onsidered v!$id.4)5

PNs t(ird-p!rt; '$!i# to nu$$i/; t(e 0rit on t(e %round t(!t it (!s !n

interest in t(e P!ntr!n'o properties 9ein% ! 'reditor o/ PN-&!de'or, on t(e

ot(er (!nd, 0!s denied 9e'!use it on$; (!d !n in'(o!te interest in t(e properties.4)5

T(e dispositive portion o/ t(e "!9or Ar9iters Septe#9er ), ++

Reso$ution is uoted (ereunder:

DHEREFORE, t(e T(ird P!rt; C$!i# o/ PN &!de'or !ndor

&e%! Pri#e Ho$din%s, In'. is (ere9; GRANTE3 !nd 'on'o#it!nt$; t(e

$evies #!de 9; t(e s(eri//s o/ t(e N"RC on t(e properties o/ PN

&!de'or s(ou$d 9e !s it 1si'2 is (ere9; "IFTE3 su9=e't to t(e p!;#ent

9; PN &!de'or to t(e 'o#p$!in!nts t(e !#ount o/ P,@,..

T(e &otion to u!s( !nd T(ird P!rt; C$!i# o/ PN is (ere9;

3ENIE3.

T(e &otion to u!s( o/ PN &!de'or !nd &e%! Pri#e

Ho$din%s, In'. is (ere9; PARTIA""Y GRANTE3 inso/!r !s t(e !#ount

o/ t(e 0rit e>'eeds P,@,..

T(e &otion /or Re'o#put!tion !nd E>!#in!tion o/ 6ud%#ent

A0!rds is (ere9; 3ENIE3 /or 0!nt o/ #erit.
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T(e &otion to E>pun%e /ro# t(e Re'ords

'$!i#!nts'o#p$!in!nts Opposition d!ted Au%ust 7, ++ is (ere9;

3ENIE3 /or $!'< o/ #erit.

SO OR3ERE3.4)5

On !ppe!$ to t(e N"RC, t(e s!#e 0!s denied !nd t(e "!9or Ar9iters

disposition 0!s !//ir#ed.4)5 Spe'i/i'!$$;, t(e N"RC 'on'$uded !s /o$$o0s:

1)2 PN-&!de'or !nd &e%! Pri#e 'ontended t(!t it 0ou$d 9e

i#possi9$e /or t(e# to 'o#p$; 0it( t(e reuire#ent o/ t(e $!9or !r9iter

to p!; to t(e PNEI e#p$o;ees t(e !#ount o/ P. #i$$ion !s ! 'ondition

to t(e $i/tin% o/ t(e $ev; on t(e properties, sin'e t(e 'redit 0!s !$re!d;

%!rnis(ed 9; Ger!rdo ; !nd ot(er 'reditors o/ PNEI. T(e N"RC /oundno eviden'e t(!t ; (!d s!tis/ied (is =ud%#ent /ro# t(e pro#issor;

note, !nd opined t(!t even i/ t(e 'redit 0!s in custo$ia le%is, t(e '$!i# o/

t(e PNEI e#p$o;ees s(ou$d en=o; pre/eren'e under t(e "!9or Code.

1+2 T(e PNEI e#p$o;ees 'ontested t(e /indin% t(!t PN-

&!de'or 0!s inde9ted to t(e PNEI /or on$; P. #i$$ion 0it(out

'onsiderin% t(e !''ru!$ o/ interest. ut t(e N"RC s!id t(!t t(ere 0!s no

eviden'e t(!t de#!nd 0!s #!de !s ! 9!sis /or re'


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1@2 T(e PNEI e#p$o;ees /!u$ted t(e $!9or !r9iter /or not

/indin% t(!t PNEI, PN, PN-&!de'or !nd &e%! Pri#e 0ere !$$ =oint$;

!nd sever!$$; $i!9$e /or t(eir '$!i#s. T(e N"RC unders'ored t(e /!'t

t(!t PNEI !nd &!'ris 0ere su9sidi!ries o/ NI3C !nd (!d p!ssed t(rou%(

!nd 0ere under t(e Asset Priv!tiB!tion Trust 1APT2 0(en t(e $!9or

'$!i#s !''rued. T(e $!9or !r9iter 0!s 'orre't in not %r!ntin% PNs

t(ird-p!rt; '$!i# 9e'!use !t t(e ti#e t(e '!uses o/ !'tion !''rued, t(e

PNEI 0!s #!n!%ed 9; ! #!n!%e#ent 'o##ittee !ppointed 9; t(e PN

!s t(e ne0 o0ner o/ PNRI 1si'2 !nd &!'ris t(rou%( ! deed o/

!ssi%n#ent or tr!ns/er o/ o0ners(ip. T(e N"RC s!;s !t $en%t( t(!t t(e

s!#e is not true 0it( PN-&!de'or 0(i'( is no0 t(e re%istered o0ner

o/ t(e properties.4+5

T(e p!rties sep!r!te #otions /or re'onsider!tion 0ere $i


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re%istered under t(e n!#e o/ PN-&!de'or. I/ PN !nd PN-&!de'or 'ou$d not

!ns0er /or t(e $i!9i$ities o/ PNEI, 0it( #ore re!son s(ou$d &e%! Pri#e not 9e

(e$d $i!9$e 9ein% ! #ere su''essor-in-interest o/ PN-&!de'or.

ns!tis/ied, PEA-PTGDO !nd PANREA /i$ed t(eir #otion /orre'onsider!tion?4+@50(i$e PN /i$ed its P!rti!$ &otion /or Re'onsider!tion. 4+85PN

pointed out t(!t PN-&!de'or 0!s #!de to !ns0er /or P,@,. to t(e PNEI

e#p$o;ees 9; virtue o/ t(e pro#issor; note it 1PN-&!de'or2 e!r$ier e>e'uted in

/!vor o/ PNEI. PN, (o0ever, uestioned t(e 6une +7, +@ !u'tion s!$e !s

t(e P. #i$$ion de9t (!d !$re!d; 9een s!tis/ied pursu!nt to t(is Courts de'ision

inPNB MAEC!R v. "#.4+5

ot( #otions 0ere denied 9; t(e !ppe$$!te 'ourt.

4+5

In t0o sep!r!te petitions, PN !nd t(e /or#er PNEI e#p$o;ees 'o#e up to

t(is Court !ss!i$in% t(e CA de'ision !nd reso$ution. T(e /or#er PNEI e#p$o;ees

r!ise t(e $one error, t(us:

T(e Honor!9$e Court o/ Appe!$s p!$p!9$; dep!rted /ro# t(e

est!9$is(ed ru$es !nd =urispruden'e in ru$in% t(!t priv!te respondents

P!ntr!n'o Nort( E>press, In'. 1PNEI2, P(i$ippine N!tion!$ !n< 1PN2,

P(i$ippine N!tion!$ !n< &!n!%e#ent !nd 3eve$op#ent Corpor!tion

1PN-&A3ECOR2, &e%! Pri#e Re!$t; !nd Ho$din%s, In'. 1&e%!

Pri#e2 !re not =oint$; !nd sever!$$; !ns0er!9$e to t(eP++,+,)8.++

&i$$ion N"RC #one; =ud%#ent !0!rds in /!vor o/ t(e @, individu!$

#e#9ers o/ t(e Petitioners.4+5

T(e; '$!i# t(!t PN, t(rou%( PN-&!de'or, dire't$; 9ene/ited /ro# t(e oper!tion

o/ PNEI !nd (!d 'o#p$ete 'ontro$ over t(e /unds o/ PNEI. Hen'e, t(e; !re

so$id!ri$; !ns0er!9$e 0it( PNEI /or t(e unp!id #one; '$!i#s o/ t(e e#p$o;ees.4+5Citin%A.C. Ranso& Labor "nion'CCL" v. NLRC,475t(e e#p$o;ees insist t(!t

0(ere t(e e#p$o;er 'orpor!tion 'e!ses to e>ist !nd is no $on%er !9$e to s!tis/; t(e

=ud%#ent !0!rds in /!vor o/ its e#p$o;ees, t(e o0ner o/ t(e e#p$o;er 'orpor!tion

s(ou$d 9e #!de =oint$; !nd sever!$$; $i!9$e.47)5 T(e; !dded t(!t #!$i'e or 9!d /!it(

need not 9e proven to #!


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On t(e ot(er (!nd, PN !n'(ors its petition on t(is so$e !ssi%n#ent o/

error, vi(.:

THE ACTION SA"E OF THE PROPERTY COJERE3 Y TCT NO.

@ INTEN3E3 TO PARTIA""Y SATISFY THE C"AI&S OFFOR&ER DORKERS OF PNEI IN THE A&ONT OF P,@,.

1THE A&ONT OF PN-&A3ECORS PRO&ISSORY NOTE IN

FAJOR OF PNEI2 IS NOT IN OR3ER AS THE SAI3 PROPERTY IS

NOT ODNE3 Y PNEI. FRTHER, THE SAI3 PRO&ISSORY

NOTE HA3 A"REA3Y EEN GARNISHE3 IN FAJOR OF

GERAR3O C. Y DHICH "E3 TO THREE 172 PROPERTIES

N3ER THE NA&E OF PN-&A3ECOR, NA&E"Y TCT NOS.

), + AN3 7, EING "EJIE3 AN3 SO"3 ON

ELECTION IN THE MPN-&A3ECOR JS. Y CASE 177 SCRA

)+ 4+)52 AN3 MGERAR3O C. Y JS. PNEI 1CIJI" CASE NO.8-+8, RTC &ANI"A, RANCH 72.47+5

PN insists t(!t t(e P!ntr!n'o properties 'ou$d no $on%er 9e $evied upon

9e'!use t(e pro#issor; note /or 0(i'( t(e "!9or Ar9iter (e$d PN-&!de'or $i!9$e

to PNEI, !nd in turn to t(e $!tters /or#er e#p$o;ees, (!d !$re!d; 9een s!tis/ied in

/!vor o/ Ger!rdo C. ;. It !dded t(!t t(e properties 0ere in /!'t !0!rded to t(e

(i%(est 9idder. esides, s!;s PN, t(e su9=e't properties 0ere not o0ned 9;

PNEI, (en'e, t(e e>e'ution s!$e t(ereo/ 0!s not v!$id$; e//e'ted.4775

ot( petitions #ust /!i$.

G.R. No. 170689

Stripped o/ t(e non-essenti!$s, t(e so$e issue /or reso$ution r!ised 9; t(e

/or#er PNEI e#p$o;ees is 0(et(er t(e; '!n !tt!'( t(e properties 1spe'i/i'!$$; t(e

P!ntr!n'o properties2 o/ PN, PN-&!de'or !nd &e%! Pri#e to s!tis/; t(eirunp!id $!9or '$!i#s !%!inst PNEI.

De !ns0er in t(e ne%!tive.

First, t(e su9=e't propert; is not o0ned 9; t(e =ud%#ent de9tor, t(!t is,

PNEI. No0(ere in t(e re'ords 0!s it s(o0n t(!t PNEI o0ned t(e P!ntr!n'o
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properties. Petitioners, in /!'t, never !$$e%ed in !n; o/ t(eir p$e!din%s t(e /!'t o/

su'( o0ners(ip. D(!t 0!s est!9$is(ed, inste!d, inPNB MAEC!R v.

"#47@5!ndPNB v. Me%a Pri&e Realt# an$ )ol$in%s Corporation*Me%a Pri&e

Realt# an$ )ol$in%s Corporation v. PNB47850!s t(!t t(e properties 0ere o0ned 9;

&!'ris, t(e prede'essor o/ PN-&!de'or. Hen'e, t(e; '!nnot 9e pursued !%!inst9; t(e 'reditors o/ PNEI.

De 0ou$d $itends on$; to properties unuestion!9$; 9e$on%in% to t(e

=ud%#ent de9tor !$one.475To 9e sure, one #!ns %oods s(!$$ not 9e so$d /or !not(er

#!ns de9ts.475A s(eri// is not !ut(oriBed to !tt!'( or $ev; on propert; not

9e$on%in% to t(e =ud%#ent de9tor, !nd even in'urs $i!9i$it; i/ (e 0ron%/u$$; $evies

upon t(e propert; o/ ! t(ird person.

475

Second, PN, PN-&!de'or !nd &e%! Pri#e !re 'orpor!tions 0it(

person!$ities sep!r!te !nd distin't /ro# t(!t o/ PNEI. PN is sou%(t to 9e (e$d

$i!9$e 9e'!use it !'uired PNEI t(rou%( NI3C !t t(e ti#e 0(en PNEI 0!s

su//erin% /in!n'i!$ reverses. PN-&!de'or is 9ein% #!de to !ns0er /or

petitioners $!9or '$!i#s !s t(e o0ner o/ t(e su9=e't P!ntr!n'o properties !nd !s !

su9sidi!r; o/ PN. &e%! Pri#e is !$so in'$uded /or (!vin% !'uired PNs s(!res

over PN-&!de'or.

T(e %ener!$ ru$e is t(!t ! 'orpor!tion (!s ! person!$it; sep!r!te !nd distin't

/ro# t(ose o/ its sto'


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Neit(er '!n 0e #er%e t(e person!$it; o/ PNEI 0it( PN si#p$; 9e'!use t(e

$!tter !'uired t(e /or#er. Sett$ed is t(e ru$e t(!t 0(ere one 'orpor!tion se$$s or

ot(er0ise tr!ns/ers !$$ its !ssets to !not(er 'orpor!tion /or v!$ue, t(e $!tter is not,

9; t(!t /!'t !$one, $i!9$e /or t(e de9ts !nd $i!9i$ities o/ t(e tr!ns/eror.4@+5

Lastly, 0(i$e 0e re'o%niBe t(!t t(ere !re pe'u$i!r 'ir'u#st!n'es or v!$id

%rounds t(!t #!; e>ist to 0!rr!nt t(e pier'in% o/ t(e 'orpor!te vei$, 4@75none !pp$ies

in t(e present '!se 0(et(er 9et0een PN !nd PNEI? or PN !nd PN-&!de'or.

nder t(e do'trine o/ Mpier'in% t(e vei$ o/ 'orpor!te /i'tion, t(e 'ourt $oo


12/17

For one, in t(e s!id '!ses, t(e persons #!de $i!9$e !/ter t(e 'o#p!n;s

'ess!tion o/ oper!tions 0ere t(e o//i'ers !nd !%ents o/ t(e 'orpor!tion. T(e

r!tion!$e is t(!t, sin'e t(e 'orpor!tion is !n !rti/i'i!$ person, it #ust (!ve !n o//i'er

0(o '!n 9e presu#ed to 9e t(e e#p$o;er, 9ein% t(e person !'tin% in t(e interest o/

t(e e#p$o;er. T(e 'orpor!tion, on$; in t(e te'(ni'!$ sense, is t(e e#p$o;er.4@5 Int(e inst!nt '!se, 0(!t is 9ein% #!de $i!9$e is !not(er 'orpor!tion 1PN2 0(i'(

!'uired t(e de9tor 'orpor!tion 1PNEI2.

&oreover, in t(e re'ent '!ses Cara% v. National Labor Relations

Co&&ission485!ndMcLeo$ v. National Labor Relations Co&&ission,48)5t(e Court

e>p$!ined t(e do'trine $!id do0n inAC Ranso& re$!tive to t(e person!$ $i!9i$it; o/

t(e o//i'ers !nd !%ents o/ t(e e#p$o;er /or t(e de9ts o/ t(e $!tter. InAC

Ranso&,t(e Court i#puted $i!9i$it; to t(e o//i'ers o/ t(e 'orpor!tion on t(estren%t( o/ t(e de/inition o/ !n e#p$o;er in Arti'$e +)+1'2 1no0 Arti'$e +)+4e52 o/

t(e "!9or Code. nder t(e s!id provision, e&plo#erin'$udes !n; person !'tin% in

t(e interest o/ !n e#p$o;er, dire't$; or indire't$;, 9ut does not in'$ude !n; $!9or

or%!niB!tion or !n; o/ its o//i'ers or !%ents e>'ept 0(en !'tin% !s e#p$o;er. It 0!s

'$!ri/ied in Cara% !ndMcLeo$ t(!t Arti'$e +)+1e2 o/ t(e "!9or Code, 9; itse$/,

does not #!e'ution 'ou$d not 9e

i#p$e#ented !%!inst R!nso# 9e'!use o/ t(e disposition post(!ste o/ its $evi!9$e

!ssets evident$; in order to ev!de its =ust !nd due o9$i%!tions. 4875Hen'e, t(e Court

sust!ined t(e pier'in% o/ t(e 'orpor!te vei$ !nd #!de t(e o//i'ers o/ R!nso#person!$$; $i!9$e /or t(e de9ts o/ t(e $!tter.

C$e!r$;, 0(!t '!n 9e in/erred /ro# t(e e!r$ier '!ses is t(!t t(e do'trine o/

pier'in% t(e 'orpor!te vei$ !pp$ies on$; in t(ree 172 9!si' !re!s, n!#e$;: )2 de/e!t

o/ pu9$i' 'onvenien'e !s 0(en t(e 'orpor!te /i'tion is used !s ! ve(i'$e /or t(e

ev!sion o/ !n e>istin% o9$i%!tion? +2 /r!ud '!ses or 0(en t(e 'orpor!te entit; is
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used to =usti/; ! 0ron%, prote't /r!ud, or de/end ! 'ri#e? or 72 alter e%o'!ses,

0(ere ! 'orpor!tion is #ere$; ! /!r'e sin'e it is ! #ere !$ter e%o or 9usiness

'onduit o/ ! person, or 0(ere t(e 'orpor!tion is so or%!niBed !nd 'ontro$$ed !nd its

!//!irs !re so 'ondu'ted !s to #!p$ored, t(e; #ust s(o0 t(!t PN

0!s usin% PNEI !s ! #ere !d=un't or instru#ent!$it; or (!s e>p$oited or

#isused t(e 'orpor!te privi$e%e o/ PNEI.

De do not see (o0 t(e 9urden (!s 9een #et. "!'us !p!rt /ro# #ere o0ners(ip, t(e petitioners (!ve not provided us

0it( t(e $e%!$ 9!sis to re!'( t(e !ssets o/ 'orpor!tions sep!r!te !nd

distin't /ro# PNEI.485

Assu#in%, /or t(e s!isten'e s(!$$ 9e respe'ted, !nd t(e $i!9i$it; o/ t(e p!rent 'orpor!tion !s

0e$$ !s t(e su9sidi!r; 0i$$ 9e 'on/ined to t(ose !risin% in t(eir respe'tive

9usinesses.485
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InPNB v. Ritratto +roup, Inc.,4850eout$ined t(e 'ir'u#st!n'es 0(i'( !re

use/u$ in t(e deter#in!tion o/ 0(et(er ! su9sidi!r; is 9ut ! #ere instru#ent!$it; o/

t(e p!rent-'orpor!tion, to 0it:

). T(e p!rent 'orpor!tion o0ns !$$ or #ost o/ t(e '!pit!$ sto'< o/t(e su9sidi!r;?

+. T(e p!rent !nd su9sidi!r; 'orpor!tions (!ve 'o##on dire'tors

or o//i'ers?

7. T(e p!rent 'orpor!tion /in!n'es t(e su9sidi!r;?

@. T(e p!rent 'orpor!tion su9s'ri9es to !$$ t(e '!pit!$ sto'< o/ t(e

su9sidi!r; or ot(er0ise '!uses its in'orpor!tion?

8. T(e su9sidi!r; (!s %ross$; in!deu!te '!pit!$?

. T(e p!rent 'orpor!tion p!;s t(e s!$!ries !nd ot(er e>penses or

$osses o/ t(e su9sidi!r;?

. T(e su9sidi!r; (!s su9st!nti!$$; no 9usiness e>'ept 0it( t(e

p!rent 'orpor!tion or no !ssets e>'ept t(ose 'onve;ed to or 9; t(e

p!rent 'orpor!tion?

. In t(e p!pers o/ t(e p!rent 'orpor!tion or in t(e st!te#ents o/ itso//i'ers, t(e su9sidi!r; is des'ri9ed !s ! dep!rt#ent or division o/

t(e p!rent 'orpor!tion, or its 9usiness or /in!n'i!$ responsi9i$it; is

re/erred to !s t(e p!rent 'orpor!tions o0n?

. T(e p!rent 'orpor!tion uses t(e propert; o/ t(e su9sidi!r; !s its

o0n?

). T(e dire'tors or e>e'utives o/ t(e su9sidi!r; do not !'t

independent$; in t(e interest o/ t(e su9sidi!r;, 9ut t!


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None o/ t(e /ore%oin% 'ir'u#st!n'es is present in t(e inst!nt '!se. T(us, pier'in%

o/ PN-&!de'ors 'orpor!te vei$ is not 0!rr!nted. ein% ! #ere su''essor-in-

interest o/ PN-&!de'or, 0it( #ore re!son s(ou$d no $i!9i$it; !tt!'( to &e%!

Pri#e.

G.R. No. 170705

In its petition 9e/ore t(is Court, PN seee'ution s!$e o/ t(e P!ntr!n'o properties on t(e %round t(!t t(e =ud%#ent

de9tor 1PNEI2 never o0ned s!id $ots. It $ie'ution s!$e 0ere o0ned 9; &!'ris !nd $!ter, t(e PN-

&!de'or. T(e; 0ere never o0ned 9; PNEI or PN. Fo$$o0in% our e!r$ier

dis'ussion on t(e sep!r!te person!$ities o/ t(e di//erent 'orpor!tions invo$ved in

t(e inst!nt '!se, t(e on$; entit; 0(i'( (!s t(e ri%(t !nd interest to uestion t(e

e>e'ution s!$e !nd t(e eventu!$ ri%(t to !nnu$ t(e s!#e, i/ !n;, is PN-&!de'or or

its su''essor-in-interest. Sett$ed is t(e ru$e t(!t pro'eedin%s in 'ourt #ust 9e

instituted 9; t(e re!$ p!rt; in interest.

A re!$ p!rt; in interest is t(e p!rt; 0(o st!nds to 9e 9ene/ited or in=ured 9;

t(e =ud%#ent in t(e suit, or t(e p!rt; entit$ed to t(e !v!i$s o/ t(e suit. 485 MInterest

0it(in t(e #e!nin% o/ t(e ru$e #e!ns #!teri!$ interest, !n interest in issue !nd to

9e !//e'ted 9; t(e de'ree, !s distin%uis(ed /ro# #ere interest in t(e uestion

invo$ved, or ! #ere in'ident!$ interest.45 T(e interest o/ t(e p!rt; #ust !$so 9e

person!$ !nd not one 9!sed on ! desire to vindi'!te t(e 'onstitution!$ ri%(t o/ so#e

t(ird !nd unre$!ted p!rt;.

4)5

Re!$ interest, on t(e ot(er (!nd, #e!ns ! presentsu9st!nti!$ interest, !s distin%uis(ed /ro# ! #ere e>pe't!n'; or ! /uture,

'ontin%ent, su9ordin!te, or 'onseuenti!$ interest.4+5

Spe'i/i'!$$;, in pro'eedin%s to set !side !n e>e'ution s!$e, t(e re!$ p!rt; in

interest is t(e person 0(o (!s !n interest eit(er in t(e propert; so$d or t(e pro'eeds
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t(ereo/. Converse$;, one 0(o is not interested or is not in=ured 9; t(e e>e'ution

s!$e '!nnot uestion its v!$idit;.475

In =usti/;in% its '$!i# !%!inst t(e P!ntr!n'o properties, PN !$$e%es t(!t

&e%! Pri#e, t(e 9u;er o/ its entire sto'


17/17

9; t(is Court.45T(is is in !''ord 0it( t(e do'trine t(!t ! p!rt; 0(o (!s not

!ppe!$ed '!nnot o9t!in /ro# t(e !ppe$$!te 'ourt !n; !//ir#!tive re$ie/ ot(er t(!n

t(e ones %r!nted in t(e !ppe!$ed de'ision.45

WHEREORE, pre#ises 'onsidered, t(e petitions !re (ere9; DENIED/or$!'< o/ #erit.

SO ORDERED.
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