Article 1231_full Text Cases

8/9/2019 Article 1231_full Text Cases

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THIRD DIVISION[G.R. No. 115158. September 5, 1997]

EMILIA M. RA!A, !ON!ORDIA D. !HING "#$ ONG SENG, repre%e#te$ b& ENEDINO H. 'ERRER, pet(t(o#er%, )%. !ORTO' A**EALS, +A!INTO VELE, +R., !ARMEN VELE TING, AVENE MER!HANDISING, IN!., 'ELI- TING AND AL'REDO GO,re%po#$e#t%.D E ! I S I O N*ANGANIAN, +./

No)"t(o# (% #e)er pre%0me$ (t m0%t be %023(e#t4& e%t"b4(%e$ t"t " )"4($ #e6 "reeme#t or ob4("t(o# "%et(#0(%e$ or 3"#e$ "# e(%t(# o#e. Te re(%tr"t(o# o " 4"ter %"4e m0%t be $o#e (# oo$ "(t to e#t(t4e tere(%tr"#t to pr(or(t& (# o6#er%(p o)er te )e#$ee (# "# e"r4(er %"4e.

St"teme#t o te !"%e

Te%e $o3tr(#e% "re %tre%%e$ b& t(% !o0rt "% (t re%o4)e% te (#%t"#t pet(t(o# 3"44e#(# te De3ember :8, 199;De3(%(o#[1] o Re%po#$e#t !o0rt o Appe"4%[:] (# !A0$me#t ote Re(o#"4 Tr("4 !o0rt o !eb0 !(t&, r"#3 19, "#$ e#tere$ " #e6 o#e $(%m(%%(# te pet(t(o#er%? 3omp4"(#t. Te$(%po%(t()e port(o# o te RT! $e3(%(o# re"$%/[;]

@HERE'ORE, >0$me#t (% ereb& re#$ere$/

1 $e34"r(# "% #044 "#$ )o($ te tree B; $ee$% o %"4e ee30te$ b& te Ve4eCe% to 'e4( !. T(#, M"#0e4 T(# "#$A4re$o Go

: or$er(# !"rme# Ve4eC T(# "#$ +"3(#to M. Ve4eC, +r. to ee30te " $ee$ o "b%o40te %"4e (# ")or o !o#3or$(" D.!(# "#$ Em(4(" M. r"3" or te propert(e% (# 0e%t(o# or *1,==,===.==, 6(3 %0m m0%t be $e4()ere$ b& tep4"(#t(F% to te Ve4eCe% (mme$("te4& "ter te ee30t(o# o %"($ 3o#tr"3t

; or$er(# !"rme# Ve4eC T(# "#$ +"3(#to M. Ve4eC, +r. to re(mb0r%e 'e4( !. T(#, M"#0e4 !. T(# "#$ A4re$o Go6"te)er "mo0#t te 4"tter "$ p"($ to te ormer

or$er(# 'e4( !. T(#, M"#0e4 !. T(# "#$ A4re$o Go to $e4()er te propert(e% (# 0e%t(o# to te p4"(#t(F% 6(t(#tee# B15 $"&% rom re3e(pt o " 3op& o t(% $e3(%(o#

5 or$er(# "44 te $ee#$"#t% to p"&, >o(#t4& "#$ %e)er"44&, te p4"(#t(F% te %0m o *:=,===.== "% "ttor#e&?% ee%.

SO ORDERED.

Te A#te3e$e#t '"3t%

Te "3t% #"rr"te$ b& te !o0rt o Appe"4% "re "% o44o6%/[]

Te Ve4eCe% Bere(# pr()"te re%po#$e#t% 6ere te o6#er% o te 4ot "#$ 3ommer3("4 b0(4$(# (# 0e%t(o# 4o3"te$ "t*rore%o "#$ M.!. r(o#e% Street% (# !eb0 !(t&.

Here(# Bpet(t(o#er% 6ere te 4e%%ee% o %"($ 3ommer3("4 b0(4$(#.[5]

O# +04& 8, 1985, te Ve4eCe% tro0 !"rme# Ve4eC T(# 6rote " 4etter to ere(# Bpet(t(o#er% oFer(# to %e44 te %0b>e3tpropert& or *1,=5=,===.== "#$ "t te %"me t(me re0e%t(# Bere(# pet(t(o#er% to rep4& (# tree $"&%.

O# +04& 1=, 1985, Bere(# pet(t(o#er% tro0 Att&. E%3o4"%t(3o D"(to4 %e#t " rep4&e3t propert& o# +04& 1;, 1985 rom te Ve4eCe%, te 3ert(3"te o t(t4eo te %"($ propert& 6"% 34e"# "#$ ree o "#& "##ot"t(o# o "$)er%e 34"(m% or 4(% pe#$e#%.

O# +04& ;1, 1985 "% "ore%t"te$, ere(# Bpet(t(o#er% 4e$ te (#%t"#t 3omp4"(#t ""(#%t te Ve4eCe%.

O# A00%t 1, 1985, Bere(# pet(t(o#er% re(%tere$ " #ot(3e o 4(% pe#$e#% o)er te propert& (# 0e%t(o# 6(t te O23eo te Re(%ter o Dee$%.[K]

O# O3tober ;=, 1985, te A)e#0e Gro0p 4e$ "# e>e3tme#t 3"%e ""(#%t Bere(# pet(t(o#er% or$er(# te 4"tter to)"3"te te 3ommer3("4 b0(4$(# %t"#$(# o# te 4ot (# 0e%t(o#.

Tere"ter, ere(# Bpet(t(o#er% 4e$ "# "me#$e$ 3omp4"(#t (mp4e"$(# te A)e#0e Gro0p "% #e6 $ee#$"#t% B"ter"bo0t &e"r% "ter te 4(# o te or((#"4 3omp4"(#t.

Te tr("4 3o0rt o0#$ t6o pere3te$ 3o#tr"3t% o %"4e bet6ee# te Ve4eCe% "#$ te pet(t(o#er%, (#)o4)(# te re"4propert& (# 0e%t(o#. Te r%t %"4e 6"% or *1,=5=,===.== "#$ te %e3o#$ 6"% or *1,==,===.==. I# re%pe3t to ter%t %"4e, te tr("4 3o0rt e4$ t"t [$]0e to te 0#0"4(e$ "33ept"#3e b& te p4"(#t(F% 6(t(# te per(o$ %et b& te


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Ve4eCe%, tere 3o#%e0e#t4& 3"me "bo0t " meet(# o te m(#$% o te p"rt(e% #ot o#4& "% to te ob>e3t 3ert"(# b0t"4%o "% to te $e#(te 3o#%($er"t(o# or 3"0%e o te 3o#tr"3t.[7] A#$ e)e# "%%0m(# "r0e#$o t"t te %e3o#$ %"4e6"% #ot pere3te$, te tr("4 3o0rt r04e$ t"t te %"me %t(44 3o#%t(t0te$ " mere mo$(3"tor& #o)"t(o# 6(3 $($ #otet(#0(% te r%t %"4e. He#3e, te tr("4 3o0rt e4$ t"t te Ve4eCe% 6ere #ot ree to %e44 te propert(e% to te A)e#0eGro0p.[8] It "4%o o0#$ t"t te A)e#0e Gro0p p0r3"%e$ te propert& (# b"$ "(t.[9]

*r()"te re%po#$e#t% "ppe"4e$ to te !o0rt o Appe"4%. A% #ote$ e"r4(er, te !A o0#$ te "ppe"4 mer(tor(o0%. L(Je tetr("4 3o0rt, te p0b4(3 re%po#$e#t e4$ t"t tere 6"% " pere3te$ 3o#tr"3t o %"4e o te propert& or *1,=5=,===.==bet6ee# te Ve4eCe% "#$ ere(# pet(t(o#er%. It "$$e$, o6e)er, t"t %03 pere3te$ 3o#tr"3t o %"4e 6"% %0b%e0e#t4o)"te$. T0%, (t r04e$/ E)($e#3e %o6% t"t t"t 6"% te or((#"4 3o#tr"3t. Ho6e)er, te %"me 6"% m0t0"44&6(t$r"6#, 3"#3e44e$ "#$ re%3(#$e$ b& #o)"t(o#, "#$ 6"% tereore "b"#$o#e$ b& te p"rt(e% 6e# !"rme# Ve4eC T(#r"(%e$ te 3o#%($er"t(o# o te 3o#tr"3t [b&] *;5=,===.==, t0% m"J(# te pr(3e *1,==,===.== (#%te"$ o te or((#"4pr(3e o *1,=5=,===.==. S(#3e tere 6"% #o "reeme#t "% to te %e3o#$? pr(3e oFere$, tere 6"% 4(Je6(%e #o meet(#o m(#$% bet6ee# te p"rt(e%, e#3e, #o 3o#tr"3t o %"4e 6"% pere3te$.[1=] Te !o0rt o Appe"4% "$$e$ t"t,"%%0m(# tere 6"% "reeme#t "% to te pr(3e "#$ " %e3o#$ 3o#tr"3t 6"% pere3te$, te 4"ter 3o#tr"3t 6o04$ be0#e#or3e"b4e 0#$er te St"t0te o 'r"0$%. It 0rter e4$ t"t %03 %e3o#$ "reeme#t, ( tere 6"% o#e, 3o#%t(t0te$ "mere prom(%e to %e44 6(3 6"% #ot b(#$(# or 4"3J o "33ept"#3e or " %ep"r"te 3o#%($er"t(o#.[11]

Te I%%0e%

*et(t(o#er% "44ee te o44o6(# error% (# te De3(%(o# o Re%po#$e#t !o0rt/

I

S(#3e (t r04e$ (# (t% $e3(%(o# t"t tere 6"% #o meet(# o te m(#$% o# te %e3o#$? pr(3e oFere$ B*1,==,===.==,

e#3e #o 3o#tr"3t o %"4e 6"% pere3te$, te !o0rt o Appe"4% erre$ (# #ot o4$(# t"t te or((#"4 6r(tte# 3o#tr"3t tob0& "#$ %e44 or *1,=5=,===.== te Ve4eCe% propert& 3o#t(#0e$ to be )"4($ "#$ e#or3e"b4e p0r%0"#t to Art. 1:79 (#re4"t(o# 6(t Art. 179, r%t p"r"r"p, "#$ Art. 1=;, %0bp"r"r"p : Be o te !()(4 !o$e.

II

Te !o0rt o Appe"4% erre$ (# #ot r04(# t"t pet(t(o#er% ")e better r(t% to b0& "#$ o6# te Ve4eCe%? propert& orre(%ter(# te(r #ot(3e o 4(% pe#$e#% "e"$ o te A)e#0e Gro0p?% re(%tr"t(o# o te(r $ee$% o %"4e t"J(# (#to"33o0#t Art. 15, :#$ p"r"r"p, o te !()(4 !o$e.[1:]

Te !o0rt?% R04(#

Te pet(t(o# (% mer(tor(o0%.

'(r%t I%%0e/ No Et(#3t()e No)"t(o#

Te 4p(# o te "%%"(4e$ De3(%(o# (% te p0b4(3 re%po#$e#t?% 3o#340%(o# t"t te %"4e o te re"4 propert& (#3o#tro)er%&, b& te Ve4eCe% to pet(t(o#er% or *1,=5=,===.==, 6"% et(#0(%e$ b& #o)"t(o# "ter te %"($ p"rt(e%#eot("te$ to (#3re"%e te pr(3e to *1,==,===.==. S(#3e tere 6"% #o "reeme#t o# te %"4e "t te (#3re"%e$ pr(3e,te# tere 6"% #o pere3te$ 3o#tr"3t to e#or3e. @e $(%"ree.

Te !o0rt #ote% t"t te pet(t(o#er% "33epte$ (# 6r(t(# "#$ 6(to0t 0"4(3"t(o# te Ve4eCe%? 6r(tte# oFer to %e44 "t*1,=5=,===.== 6(t(# te treee3t 3ert"(# "#$3"0%e 3o#30rre$.[1;] T0%, t(% 0e%t(o# (% po%e$ or o0r re%o40t(o#/ @"% tere " #o)"t(o# o t(% pere3te$ 3o#tr"3t

Art(34e 1K== o te !()(4 !o$e pro)($e% t"t B%"4e% "re et(#0(%e$ b& te %"me 3"0%e% "% "44 oter ob4("t(o#%, . Art(34e 1:;1 o te %"me !o$e %t"te% t"t #o)"t(o# (% o#e o te 6"&% to 6(pe o0t "# ob4("t(o#. Et(#3t()e#o)"t(o# re0(re%/ B1 te e(%te#3e o " pre)(o0% )"4($ ob4("t(o# B: te "reeme#t o "44 te p"rt(e% to te #e6

3o#tr"3t B; te et(#0(%me#t o te o4$ ob4("t(o# or 3o#tr"3t "#$ B te )"4($(t& o te #e6 o#e.[1] Teoreo(# 34e"r4& %o6 t"t #o)"t(o# (% eFe3te$ o#4& 6e# " #e6 3o#tr"3t "% et(#0(%e$ "# e"r4(er 3o#tr"3tbet6ee# te %"me p"rt(e%. I# t(% 4(t, #o)"t(o# (% #e)er pre%0me$ (t m0%t be pro)e# "% " "3t e(ter b& epre%%%t(p04"t(o# o te p"rt(e% or b& (mp4(3"t(o# $er()e$ rom "# (rre3o#3(4"b4e (#3omp"t(b(4(t& bet6ee# o4$ "#$ #e6ob4("t(o#% or 3o#tr"3t%.[15] Ater " toro0 re)(e6 o te re3or$%, 6e #$ t(% e4eme#t 4"3J(# (# te 3"%e "t b"r.

A% "pt4& o0#$ b& te !o0rt o Appe"4%, te pet(t(o#er% "#$ te Ve4eCe% $($ #ot re"3 "# "reeme#t o# te #e6 pr(3e o*1,==,===.== $em"#$e$ b& te 4"tter. I# t(% 3"%e, te pet(t(o#er% "#$ te Ve4eCe% 34e"r4& $($ #ot pere3t " #e63o#tr"3t be3"0%e te e%%e#t("4 re0(%(te o 3o#%e#t 6"% "b%e#t, te p"rt(e% ")(# "(4e$ to "ree o# te term% o tep"&me#t. Tr0e, pet(t(o#er% m"$e " 0"4(e$ "33ept"#3e o t(% oFer b& propo%(# t"t te p"&me#t o t(% (er %"4epr(3e be m"$e b& (#%t"44me#t, 6(t *1,===,===.== "% $o6# p"&me#t "#$ te b"4"#3e o *==,===.== p"&"b4e t(rt&$"&% tere"ter. #$er Art(34e 1;19 o te !()(4 !o$e,[1K] %03 0"4(e$ "33ept"#3e 3o#%t(t0te% " 3o0#tere3t(# te Ve4eCe%? oFer.[17] I#$ee$, pet(t(o#er%? 3o0#ter


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Te oreo(# o4$(# 6o04$ ")e bee# %(mp4e "#$ %tr"(tor6"r$. 0t Re%po#$e#t Ve4eCe% 3omp4(3"te$ te m"tterb& %e44(# te %"me propert& to te oter pr()"te re%po#$e#t% 6o 6ere reerre$ to (# te "%%"(4e$ De3(%(o# "% teA)e#0e Gro0p.

eore 0% tereore (% " 34"%%(3 3"%e o " $o0b4e %"4e e3t o t(% 3"%e, "#$ te %0b%e0e#t re(%tr"t(o# tereo o#A00%t 1, 1995. Te A)e#0e Gro0p "$ "3t0"4 J#o64e$e o te Ve4eCe%? pr(or %"4e o te %"me propert& to tepet(t(o#er%, " "3t "#t(tet(3"4 to oo$ "(t. 'or " %e3o#$ b0&er 4(Je te A)e#0e Gro0p to %033e%%044& (#)oJe te%e3o#$ p"r"r"p, Art(34e 15 o te !()(4 !o$e, (t m0%t po%%e%% oo$ "(t rom te t(me o te %"4e (# (t% ")or 0#t(4te re(%tr"t(o# o te %"me. T(% re0(reme#t o oo$ "(t te A)e#0e Gro0p %ore4& "(4e$ to meet. T"t (t "$J#o64e$e o te pr(or %"4e, " "3t 0#$(%p0te$ b& te !o0rt o Appe"4%, (% ep4"(#e$ b& te tr("4 3o0rt t0%/

Te A)e#0e Gro0p, 6o%e %tore (% 34o%e to te propert(e% (# 0e%t(o#, "$ J#o6# te p4"(#t(F% to be te 4e%%eee3t, o#e o te p"rt(e% m"& ree (m%e4 rom te 3o#tr"3t0"4 t(e b& (% o6# 6(44 B0#(4"ter"4et(#0(%me#t . Bp. :7


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A#$ t"t 6"% >0%t 6"t $ee#$"#te3t% o te "reeme#t.0t te %tor& $($ #ot e#$ tere.

It (% tr0e t"t $ee#$"#t0%t("b4& re0%e$ te oFer be3"0%e (t 6"#te$ "# ete#%(o# o te 3o#tr"3t to m"Je 0p or teper(o$ o (#"3t()(t&. A% te !o0rt o Appe"4% %"($ (# (t% $e3(%(o#/ [7]

It tooJ $ee#$"#t


8/18

I# #e, te "ppe44"#t 6(t$re6 (t% 0#(4"ter"4 term(#"t(o# o (t% "reeme#t 6(t "ppe44ee (# (t% 4etter $"te$No)ember 7, 199=. 0t te "ppe44ee?% re0%"4 to re%0me 6orJ 6"%, (# eFe3t, " 0#(4"ter"4 term(#"t(o# o tep"rt(e%? "reeme#t 0%t(& "# ete#%(o# o te term o te 3o#tr"3t. [8] 'or te "3t (% t"t te 3o#tr"3t6"% %0b>e3t to " re%o40tor& per(o$ 6(3 re4(e)e$ te p"rt(e% o te(r re%pe3t()e ob4("t(o#% b0t $($ #ot %top ter0##(# o te per(o$ o te(r 3o#tr"3t.

Te tr0t o te m"tter (% t"t 6(4e pr()"te re%po#$e#t "$ m"$e eFort% to6"r$% "33ommo$"t(o#, pet(t(o#er6"% 0#6(44(# to m"Je "$>0%tme#t% "% (t (#%(%te$ t"t (t 3"##ot prot"b4& re%0me oper"t(o# 0#$er te %"meterm% "#$ 3o#$(t(o#% [o] te term(#"te$ 3o#tr"3t b0t 6(t "# o0t%($e 6orJ )e#0e ["%] tr"#%port"t(o# 3o%t% "4o#e6(44 e"t 0p te me"er prot t"t A3eobe0re, tere 6"% #o >0%t(3"t(o# orpet(t(o#er?% $em"#$ or "# ete#%(o# o te term% o te 3o#tr"3t. *r()"te re%po#$e#t 6"% >0%t(e$ (# (#%(%t(#t"t "ter te ep(r"t(o# o te 3o#tr"3t, te p"rt(e% m0%t #eot("te " #e6 o#e "% te& "$ $o#e e)er& &e"r%(#3e te %t"rt o te(r b0%(#e%% re4"t(o#% (# 1979.

Se3o#$. *et(t(o#er %4"m% te !o0rt o Appe"4% or r04(# t"t (t 6"% [pet(t(o#er?%] 0#>0%t(e$ re0%"4 6(3#"44& term(#"te$ te 3o#tr"3t bet6ee# te p"rt(e%. T(% 3o#te#t(o# (% 4(Je6(%e 6(to0t mer(t. *et(t(o#er m"ot be re%po#%(b4e or te term(#"t(o# o te 3o#tr"3t, b0t #e(ter (% pr()"te re%po#$e#t, %(#3e te 0e%t(o# (#t(% 3"%e (% 6eter pr()"te re%po#$e#t (% 0(4t& o bre"3 o 3o#tr"3t. Te tr("4 3o0rt e4$ t"t pr()"tere%po#$e#t 3omm(tte$ " bre"3 o 3o#tr"3t be3"0%e, e)e# "% (t% A00%t :8, 199= 4etter "44o6e$ pet(t(o#er tore%0me 6orJ, pr()"te re%po#$e#t?% oFer 6"% 4(m(te$ to te rep"(r% o 6oo$e# %e44% "#$ t(% "$ to be $o#e

o0t%($e te 3omp"#&?% prem(%e%. O# te oter "#$, te #"4 oFer m"$e o# No)ember 7, 199=, 6(4e "44o6(#te rep"(r o 6oo$e# %e44% [to be $o#e] (#%($e te p4"#t "33or$(# to &o0r 3o#tr"3t 6(t te 3omp"#&, 6"% %t(444(m(te$ to te rep"(r o te 6oo$e# %e44%, 6e# te "3t 6"% t"t te p"rt(e%? 3o#tr"3t 6"% bot or te rep"(r o6oo$e# 3r"te% "#$ or te 34e"#(# o %ot $r(#J bott4e%.

0t t(% 6"% #ot te pet(t(o#er?% 3omp4"(#t. Tere 6"% #e)er "# (%%0e 6eter te 3omp"#&?% oFer (#340$e$ te34e"#(# o bott4e%. ot p"rt(e% 0#$er%too$ pr()"te re%po#$e#t?% oFer "% (#340$(# te 34e"#(# o empt& %ot$r(#J bott4e% "#$ te rep"(r o te 6oo$e# 3r"te%. R"ter, te $(%30%%(o#% bet6ee# pet(t(o#er "#$ pr()"tere%po#$e#t?% repre%e#t"t()e% o30%e$ r%t, o# te (#%(%te#3e o pet(t(o#er t"t (t be "44o6e$ to 6orJ (#%($e te3omp"#& p4"#t "#$, 4"ter, o# (t% re0e%t or te ete#%(o# o te 4(e o te 3o#tr"3t.

*et(t(o#er 34"(m% t"t pr()"te re%po#$e#t "$ " re"%o# to 6"#t to term(#"te te 3o#tr"3t "#$ t"t 6"% to ()ete b0%(#e%% to Are# E#terpr(%e%, "% te 4"tter oFere$ (t% %er)(3e% "t " m03 4o6er r"te t"# pet(t(o#er. Are#


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E#terpr(%e%? r"te 6"% *:.5= per %e44 6(4e pet(t(o#er?% r"te% 6ere *.== "#$ *K.== per %e44 or or$(#"r& "#$%0per %(Ce$ bott4e%, re%pe3t()e4&. [11]

Te 3o#te#t(o# "% #o b"%(% (# "3t. Te 3o#tr"3t bet6ee# pr()"te re%po#$e#t "#$ Are# E#terpr(%e% "$ bee#m"$e o# M"r3 :9, 199= < beore te re broJe o0t. Te 3o#tr"3t bet6ee# pet(t(o#er "#$ pr()"te re%po#$e#t $($#ot pro(b(t te (r(# b& pr()"te re%po#$e#t o "#oter %er)(3e 3o#tr"3tor. @(t pr()"te re%po#$e#t (tt(#pro$03t(o# "t 8,=== bott4e% o %ot $r(#J% per $"&, pet(t(o#er 3o04$ 34e"r4& #ot "#$4e te b0%(#e%%, %(#3e (t 3o04$34e"# o#4& :,5== bott4e% " $"&. [1:] Te%e "3t% %o6 t"t "4to0 Are# E#terpr(%e%? r"te 6"% 4o6er t"#pet(t(o#er?%, te& $($ #ot "Fe3t pr()"te re%po#$e#t?% b0%(#e%% re4"t(o# 6(t pet(t(o#er. De%p(te pr()"tere%po#$e#t?% 3o#tr"3t 6(t Are# E#terpr(%e%, pr()"te re%po#$e#t 3o#t(#0e$ $o(# b0%(#e%% 6(t pet(t(o#er "#$

6o04$ prob"b4& ")e $o#e %o 6ere (t #ot or te re. O# te oter "#$, Are# E#terpr(%e% 3o04$ #ot beber0$e$ or be(# "44o6e$ to 3o#t(#0e re#$er(# %er)(3e e)e# "ter te re be3"0%e (t 6"% $o(# (t% 6orJo0t%($e pr()"te re%po#$e#t?% p4"#t. 'or t"t m"tter, "ter te re, pr()"te re%po#$e#t o# A00%t :8, 199=oFere$ to 4et pet(t(o#er re%0me (t% %er)(3e pro)($e$ t(% 6"% $o#e o0t%($e te p4"#t.

*et(t(o#er m"& #ot be to b4"me or te "(40re to re%0me 6orJ "ter te re, b0t #e(ter (% pr()"te re%po#$e#t.S(#3e te 0e%t(o# (% 6eter pr()"te re%po#$e#t (% 0(4t& o bre"3 o 3o#tr"3t, te "3t t"t pr()"te re%po#$e#t(% b4"me4e%% 3"# o#4& 4e"$ to te 3o#340%(o# t"t te "ppe"4e$ $e3(%(o# (% 3orre3t.

@HERE'ORE, te pet(t(o# or re)(e6 (% DENIED "#$ te $e3(%(o# o te !o0rt o Appe"4% (% A''IRMED.

SO ORDERED.

SE!OND DIVISION

ISAIAS '. 'ARIGAS "#$ G.R. No. 15:;KMAR!ELINA R. 'ARIGAS, *et(t(o#er%, *re%e#t/

*NO, +.,

!"(rm"#, < )er%0% < ASTRIA


10/18


11/18

De4 Mo#te %e#t " $em"#$ 4etter $"te$ 'ebr0"r& ;, 198K, (#orm(# pet(t(o#er% o te(r o)er$0e "33o0#te0()"4e#t to #(#e B9 (#%t"44me#t% or " tot"4 "mo0#t o *:K,8K1.=. De4 Mo#te re0(re$ pet(t(o#er% to %"t(%& %"($"mo0#t (mme$("te4& (# t6o %0b%e0e#t 4etter% $"te$ M"r3 5 "#$ Apr(4 :, 198K.[1=] T(% prompte$ pet(t(o#er%to p"& te o44o6(# "mo0#t%/

'ebr0"r& ;, 198K *:, ===.==M"r3 1=, 198K *:, ===.==Apr(4 9, 198K *:, ===.==M"& 1;, 198K *:, ===.==+0#e K, 198K *:, ===.==+04& 1, 198K *:, ===.==[11]

No oter p"&me#t% 6ere m"$e b& pet(t(o#er% e3ept te "mo0#t o *1=,===.== 6(3 pet(t(o#er% te#$ere$%omet(me (# O3tober 1987 b0t 6(3 De4 Mo#te re0%e$ to "33ept, te 4"tter 34"(m(# t"t te p"&me#t 6"%(#te#$e$ or te %"t(%"3t(o# o !o#tr"3t to Se44 No. :8:


12/18

*et(t(o#er% $e"04te$ (# "44 mo#t4& (#%t"44me#t%. Te& m"& be 3re$(te$ o#4& 6(t te "mo0#t o *;=,===.== p"($0po# te ee30t(o# o !o#tr"3t to Se44 No. :8:0"4 p"rt#er%(p 6(to0t te 0%b"#$?% 3o#%e#t e3ept (# 3"%e% pro)($e$ b&4"6. S(#3e o#4& pet(t(o#er M"r3e4(#" ee30te$ !o#tr"3t to Se44 No. :910"4 p"rt#er%(p 6(to0t te 0%b"#$?% 3o#%e#t e3ept (# 3"%e%pro)($e$ b& 4"6.[:K]

T0%, ( " 3o#tr"3t e#tere$ (#to b& o#e %po0%e (#)o4)(# " 3o#>0"4 propert& 4"3J% te 3o#%e#t o te oter%po0%e, "% (# te 3"%e "t b"r, (% (t "0tom"t(3"44& )o($ or t"t re"%o# "4o#e


13/18

Art(34e 17;[:7] o te !()(4 !o$e epre%%4& 34"%%(e% " 3o#tr"3t ee30te$ b& te 0%b"#$ 6(to0t te 3o#%e#t ote 6(e "% mere4& "##044"b4e "t te (#%t"#3e o te 6(e. Ho6e)er, tere (% #o 3omp"r"b4e pro)(%(o# 3o)er(# "#(#%t"#3e 6ere te 6(e "4o#e "% 3o#%e#te$ to " 3o#tr"3t (#)o4)(# 3o#>0"4 propert&. Art(34e 17: o te !()(4!o$e, to0, $oe% #ot epre%%4& $e34"re "% )o($ " 3o#tr"3t e#tere$ b& te 6(e 6(to0t te 0%b"#$?% 3o#%e#t.It (% "4%o #ot o#e o te 3o#tr"3t% 3o#%($ere$ "% )o($ 0#$er Art(34e 1=9[:8] o te !()(4 !o$e.

I# 'e4(pe ). He(r% o M"(mo A4$o#,[:9] te !o0rt "$ te o33"%(o# to r04e o# te )"4($(t& o " %"4e o 4"#$%be4o#(# to te 3o#>0"4 p"rt#er%(p m"$e b& te 6(e 6(to0t te 3o#%e#t o te 0%b"#$. Spe"J(#tro0 Mr. +0%t(3e Ab"$ S"#to%, te !o0rt $e34"re$ %03 " 3o#tr"3t "% )o($"b4e be3"0%e o#e o te p"rt(e% (%(#3"p"b4e o ()(# 3o#%e#t to te 3o#tr"3t. Te 3"p"3(t& to ()e 3o#%e#t be4o#e$ #ot e)e# to te 0%b"#$

"4o#e b0t to bot%po0%e%.[;=] I# t"t 3"%e, te !o0rt "#3ore$ (t% r04(# o# Art(34e 17; o te !()(4 !o$e 6(3 %t"te% t"t3o#tr"3t% e#tere$ b& te 0%b"#$ 6(to0t te 3o#%e#t o te 6(e 6e# %03 3o#%e#t (% re0(re$, "re "##044"b4e"t er (#%t"#3e $0r(# te m"rr("e "#$ 6(t(# te# &e"r% rom te tr"#%"3t(o# me#t(o#e$.[;1]

Te "3t0"4 m(4(e0 o te (#%t"#t 3"%e, o6e)er, $(Fer% rom t"t (# 'e4(pe. Te $ee3t 6(3 !o#tr"3t to Se44 No.:910"4 p"rt#er%(p propert&.

ARTI!LE 1K9. Te 6(e m"& "4%o, b& epre%% "0tor(t& o te 0%b"#$ "ppe"r(# (# " p0b4(3 (#%tr0me#t,"$m(#(%ter te 4"tter% e%t"te.

@(4e te 0%b"#$ (% te re3o#(Ce$ "$m(#(%tr"tor o te 3o#>0"4 propert& 0#$er te !()(4 !o$e, tere "re(#%t"#3e% 6e# te 6(e m"& "%%0me "$m(#(%tr"t()e po6er% or "%J or te %ep"r"t(o# o propert&. I# te"bo)eme#t(o#e$ (#%t"#3e%, te 6(e m0%t be "0tor(Ce$ e(ter b& te 3o0rt or b& te 0%b"#$. @ere te0%b"#$ (% "b%e#t "#$ (#3"p"b4e o "$m(#(%ter(# te 3o#>0"4 propert&, te 6(e m0%t be epre%%4& "0tor(Ce$b& te 0%b"#$ or %eeJ >0$(3("4 "0tor(t& to "%%0me po6er% o "$m(#(%tr"t(o#. T0%, "#& tr"#%"3t(o# e#tere$ b&te 6(e 6(to0t te 3o0rt or te 0%b"#$?% "0tor(t& (% 0#e#or3e"b4e (# "33or$"#3e 6(t Art(34e 1;17[;:] o te!()(4 !o$e. T"t (% te %t"t0% to be "33or$e$ !o#tr"3t to Se44 No. :91


14/18

SO ORDERED.

'IRST DIVISION[G.R. No. 17;9. 'ebr0"r& 1;, :==]

MANILA INTERNATIONAL AIR*ORT ATHORIT BMIAA, pet(t(o#er, )%. ALA INDSTRIES !OR*ORATION, re%po#$e#t.D E ! I S I O N*ANGANIAN, +./

'ore%ee"b4e $(2304t(e% t"t o330r $0r(# te !r(%tm"% %e"%o# "#$ 3"0%e " $e4"& $o #ot 3o#%t(t0te " ort0(to0% e)e#t.Te $(2304t(e% (# pro3e%%(# 34"(m% $0r(# t"t per(o$ "re #ot "3t% o Go$ t"t 6o04$ e30%e #o#3omp4("#3e 6(t>0$(3("44& "ppro)e$ ob4("t(o#%.

Te !"%e

eore 0% (% " *et(t(o# or Re)(e6[1] 0#$er R04e 5 o te R04e% o !o0rt, "%%"(4(# te 'ebr0"r& :8, :==1 De3(%(o#[:] ote !o0rt o Appe"4% B!A (# !Ae3t to te term% "#$ 3o#$(t(o#% o te ($ Do30me#t%. Te !ONTRA!TOR%"44 4(Je6(%e be re%po#%(b4e or te remo)"4, "04(#, $(%po%"4 o m"ter("4% 0%e$ (# te 6orJ "re" (#340$(# 34e"#(#tereo $0r(# "#$ "ter 3omp4et(o# o te 6orJ.

1.: Te !ONTRA!TOR 0"r"#tee% "#$ 6"rr"#t% te ")"(4"b(4(t&, 0"4(t& "#$ e#0(#e#e%% o "44 te m"ter("4% (t6(44 %0pp4&, $e4()er "#$ 0%e (# te 3o#%tr03t(o#.

1.; Te !ONTRA!TOR 6"rr"#t% 0rter t"t "44 6orJ% %t(p04"te$ (# te !o#tr"3t %"44 be $o#e (# oo$ "#$"33ept"b4e 3o#$(t(o# "#$ to m"Je oo$ "t te !ONTRA!TOR?% epe#%e "#& (mpere3t(o#% or $ee3t% 6(3 te MIAA or(t% repre%e#t"t()e m"& $(%3o)er $0r(# te prore%% o te 6orJ 6(t(# o#e B1 &e"r rom "#$ "ter "33ept"#3e (#6r(t(# o te %"($ 6orJ b& te MIAA, "% pro)($e$ (# te Ge#er"4 !o#$(t(o#% "#$ Spe3(3"t(o#%.

ARTI!LE IV

!ONTRA!T *RI!EQMANNER O' *AMENT

.1 I# 3o#%($er"t(o# o te 044, %"t(%"3tor& "#$ "(t04 perorm"#3e b& te !ONTRA!TOR o "44 (t% 0#$ert"J(#% "#$ob4("t(o#% $e#e$ (# "#$ pro)($e$ or 0#$er t(% "reeme#t, te MIAA "ree% to p"& te !ONTRA!TOR te tot"4"mo0#t o *ESOS/ THIRT T@O MILLION [AND] ==Q1== B*;:,===,===.== *(4(pp(#e !0rre#3&, p"&"b4e "% o44o6%/

.1.1 I#(t("4 p"&me#t %"44 be m"$e 0po# %0bm(%%(o# o 6orJ "33omp4(%me#t o #ot 4e%% t"# 15

.1.: S0b%e0e#t p"&me#t% %"44 be or 6orJ "33omp4(%e$ "% me"%0re$, )er(e$ "#$ "ppro)e$ b& MIAA. S03prore%% b(44(#% %"44 (#$(3"te "3t0"4 6orJ "33omp4(%me#t% "#$ %"44 be %0b>e3t to te "ppro)"4 o MIAA, 6(3"ppro)"4 %"44 #ot be 0#re"%o#"b4& 6(te4$.

.1.; *rore%% b(44(#% %"44 be p"($ b& te MIAA per(o$(3"44& b0t #ot more t"# o#3e " mo#t 6(t(# ;= 3"4e#$"r$"&% rom re3e(pt ereo.?


15/18

Te 3o#tr"3t 3o#t"(#% e%3"4"t(o# 34"0%e% "#$ pr(3e "$>0%tme#t%. [Re%po#$e#t] m"$e te #e3e%%"r& rep"(r% "#$6"terproo#. Ater %0bm(%%(o# o (t% prore%% b(44(#% to [pet(t(o#er], [re%po#$e#t] re3e()e$ p"rt("4 p"&me#t%.*rore%% b(44(# No. K rem"(#e$ 0#p"($ $e%p(te repe"te$ $em"#$% b& [re%po#$e#t].

O# +0#e ;=, 199, [pet(t(o#er] 0#(4"ter"44& re%3(#$e$ te 3o#tr"3t o# te ro0#$ t"t [re%po#$e#t] "(4e$ to 3omp4etete pro>e3t 6(t(# te "ree$ 3omp4et(o# $"te. O# September 1K, 199, [pet(t(o#er] "$)(%e$ [re%po#$e#t] o "3omm(ttee orme$ to $eterm(#e te ete#t o te 6orJ $o#e 6(3 6"% ()e# 0#t(4 September ;=, 199 to %0bm(t (t%#$(#%. +0%t te %"me, [re%po#$e#t] 6"% #ot 044& p"($.

O# O3tober :=, 199, [re%po#$e#t] ob>e3te$ to te re%3(%%(o# m"$e b& [pet(t(o#er] "#$ re(ter"te$ (t% 34"(m%. A% o te4(# o te 3omp4"(#t or %0m o mo#e& "#$ $"m"e% o# +04& 18, 1995, [re%po#$e#t] 6"% %eeJ(# to re3o)er rom[pet(t(o#er] *1=,;7K,=17.== "% te 4"tter?% o0t%t"#$(# ob4("t(o# "#$ *1,K:,11:.8 $0e rom te r%t to [te] tprore%% b(44(#%.

@(t te 4(# o [re%po#$e#t?%] %0ro(#$er to [pet(t(o#er?%] re>o(#$er, te tr("4 !o0rt $(re3te$ te p"rt(e% to pro3ee$to "rb(tr"t(o# o# +04& 1K, 199K. Te !o0rt " 0o?% r04(# (% b"%e$ o# Art(34e --VII o te 3o#tr"3t t"t pro)($e% or"rb(tr"t(o#.

ot p"rt(e% ee30te$ " 3omprom(%e "reeme#t, "%%(%te$ b& te(r 3o0#%e4%, "#$ >o(#t4& 4e$ (# 3o0rt " mot(o# or>0$me#t b"%e$ o# 3omprom(%e "reeme#t.

RT! D(%po%(t(o#

O# No)ember , 1997, te !o0rt " 0o re#$ere$ >0$me#t "ppro)(# te 3omprom(%e "reeme#t. Te pert(#e#t

port(o#% o te 3omprom(%e re"$ "% o44o6%/

1. A% 044 "#$ 3omp4ete p"&me#t o (t% 34"(m% ""(#%t [pet(t(o#er] "r(%(# rom te(r 6"terproo# 3o#tr"3t%0b>e3t o t(% 3"%e, [re%po#$e#t] "33ept% [pet(t(o#er]?% oFer o p"&me#t (# te "mo0#t o 'IVE MILLION NINEHNDRED 'ORT SI- THOSAND T@O HNDRED NINET 'OR AND ;1Q1== B*5,9K,:9.;1.

:. [*et(t(o#er] %"44 p"& [re%po#$e#t] %"($ "mo0#t o 'IVE MILLION NINE HNDRED 'ORT SI- THOSAND T@OHNDRED NINET 'OR AND ;1Q1== B*5,9K,:9.;1 6(t(# " per(o$ o t(rt& B;= $"&% rom re3e(pt o " 3op& o teOr$er o te !o0rt "ppro)(# t(% !omprom(%e Areeme#t.

;. '"(40re o te [pet(t(o#er] to p"& %"($ "mo0#t to [re%po#$e#t] 6(t(# te per(o$ "bo)e %t(p04"te$ %"44 e#t(t4ete [re%po#$e#t] to " 6r(t o ee30t(o# rom t(% Ho#or"b4e !o0rt to e#or3e "44 (t% 34"(m%[5] p4e"$e$ (# te !omp4"(#t.

. I# 3o#%($er"t(o# o te Imp4eme#t"t(o# o t(% !omprom(%e Areeme#t, [re%po#$e#t] "ree% to 6"()e "44 (t%34"(m% ""(#%t te [pet(t(o#er] "% p4e"$e$ (# te !omp4"(#t, "#$ [pet(t(o#er] "4%o "ree% to 6"()e "44 (t% 34"(m%, r(t%

"#$ (#tere%t% p4e"$e$ (# te "#%6er, "#$ "44 %03 oter 34"(m% t"t (t "% or m"& ")e (# 3o##e3t(o# 6(t, re4"te$ to or"r(%(# rom te @"terproo# !o#tr"3t %0b>e3t o t(% 3"%e 6(t [re%po#$e#t].

'(#$(# te "ore%"($ !OM*ROMISE AGREEMENT #ot to be 3o#tr"r& to 4"6, mor"4[%], oo$ 30%tom%, p0b4(3 or$er, "#$p0b4(3 po4(3&, te !o0rt ereb& "ppro)e% te %"me "#$ re#$er% >0$me#t (# 3o#orm(t& 6(t te term% "#$ 3o#$(t(o#%o te %"($ !OM*ROMISE AGREEMENT, e#>o(#(# te p"rt(e% to 3omp4& 6(t te pro)(%(o#% tereo %tr(3t4& "#$ (# oo$"(t 6(to0t pro#o0#3eme#t "% to 3o%t%.

SO ORDERED.?

'or [pet(t(o#er?%] "(40re to p"& 6(t(# te per(o$ "bo)e %t(p04"te$, [re%po#$e#t] 4e$ " mot(o# or ee30t(o# to e#or3e(t% 34"(m (# te tot"4 "mo0#t o *1;,118,1:9.8. [*et(t(o#er] 4e$ " 3omme#t "#$ "ttr(b0te$ te $e4"&% to (t% be(# "o)er#me#t "e#3&. I# (t% eFort to re#$er [re%po#$e#t?%] mot(o# or ee30t(o# moot "#$ "3"$em(3, [pet(t(o#er] p"($[re%po#$e#t] *5,9K,:9.;1 o# 'ebr0"r& :, 1998.

O# 'ebr0"r& 1K, 1998, te tr("4 3o0rt $e#(e$ [re%po#$e#t?%] mot(o# or ee30t(o#. It "4%o $e#(e$ te mot(o# orre3o#%($er"t(o#, r04(# "% o44o6%/

Te $e4"& (# 3omp4&(# 6(t te !omprom(%e Areeme#t ")(# bee# %"t(%"3tor(4& ep4"(#e$ b& te O23e o teGo)er#me#t !o0#%e4, te Mot(o# or Re3o#%($er"t(o# o te or$er $e#&(# [re%po#$e#t?%] Mot(o# or Ee30t(o# (%$e#(e$.?

SO ORDERED.[K]

R04(# o te !o0rt o Appe"4%

Re)er%(# te tr("4 3o0rt, te !A or$ere$ (t to (%%0e " 6r(t o ee30t(o# to e#or3e re%po#$e#t?% 34"(m to te ete#t opet(t(o#er?% rem"(#(# b"4"#3e. Te "ppe44"te 3o0rt r"t(o3(#"te$ t"t " >0$me#t re#$ere$ (# "33or$"#3e 6(t "3omprom(%e "reeme#t 6"% (mme$("te4& ee30tor&, "#$ t"t " $e4"& o "4mo%t t6o mo#t% 6"% #ot %0b%t"#t("4

3omp4("#3e tere6(t.

He#3e t(% *et(t(o#.[7]

I%%0e%

*et(t(o#er r"(%e% te o44o6(# (%%0e% or o0r 3o#%($er"t(o#/

I.

@eter or #ot te %4(t $e4"& o pet(t(o#er (# 3omp4&(# 6(t (t% ob4("t(o# 0#$er te !omprom(%e Areeme#t (% ")"4($ ro0#$ or te e#or3eme#t o pr()"te re%po#$e#t?% 34"(m 0#$er te !omp4"(#t.


16/18

II.

@eter or #ot te $e4"& o pet(t(o#er (# 3omp4&(# 6(t (t% ob4("t(o# 0#$er te !omprom(%e Areeme#t (% >0%t(e$0#$er te pr(#3(p4e t"t #o per%o# %"44 be re%po#%(b4e or to%e e)e#t% 6(3 3o04$ #ot be ore%ee#, or 6(3 to0ore%ee#, 6ere (#e)(t"b4e.

III.

@eter or #ot pr()"te re%po#$e#t (% e%toppe$ rom e#or3(# (t% 34"(m 0#$er te !omp4"(#t 3o#%($er(# t"t (t "4re"$&e#>o&e$ te be#et% o te !omprom(%e Areeme#t.[8]

Te oreo(# m"& be %0mme$ 0p (# o#e (%%0e/ @eter tere 6"% " ort0(to0% e)e#t t"t e30%e$ pet(t(o#er rom3omp4&(# 6(t te term% "#$ 3o#$(t(o#% o te >0$(3("44& "ppro)e$ !omprom(%e Areeme#t.

Te !o0rt?% R04(#

Te *et(t(o# "% #o mer(t.

So4e I%%0e/De4"& (# *"&me#t b& Re"%o#o " 'ort0(to0% E)e#t

A 3omprom(%e "reeme#t (% " 3o#tr"3t 6ereb& te p"rt(e% m"Je re3(pro3"4 3o#3e%%(o#% to re%o4)e te(r $(Fere#3e%,[9]t0% ")o($(# 4(t("t(o#[1=] or p0tt(# "# e#$ to o#e t"t "% "4re"$& 3omme#3e$.[11] Ge#er"44& ")ore$ (# 4"6,[1:]%03 "reeme#t (% " b(4"ter"4 "3t or tr"#%"3t(o# t"t (% b(#$(# o# te 3o#tr"3t(# p"rt(e% "#$ (% epre%%4&

"3J#o64e$e$ b& te !()(4 !o$e "% " >0r($(3"4 "reeme#t bet6ee# tem.[1;] *ro)($e$ (t (% #ot 3o#tr"r& to 4"6, mor"4%,oo$ 30%tom%, p0b4(3 or$er or p0b4(3 po4(3&,[1] (t (% (mme$("te4& ee30tor&.[15]

+0$(3("4 !omprom(%e'(#"4 "#$ Ee30tor&

I# " 4o# 4(#e o 3"%e%, 6e ")e 3o#%(%te#t4& e4$ t"t " 3omprom(%e o#3e "ppro)e$ b& #"4 or$er% o te 3o0rt"% te or3e o re% >0$(3"t"[1K] bet6ee# te p"rt(e% "#$ %o04$ #ot be $(%t0rbe$ e3ept or )(3e% o 3o#%e#t ororer&.? He#3e, " $e3(%(o# o# " 3omprom(%e "reeme#t (% #"4 "#$ ee30tor& .?[17] S03 "reeme#t "% teor3e o 4"6[18] "#$ (% 3o#340%()e bet6ee# te p"rt(e%.[19] It tr"#%3e#$% (t% ($e#t(t& "% " mere 3o#tr"3t b(#$(# o#4&0po# te p"rt(e% tereto, "% (t be3ome% " >0$me#t t"t (% %0b>e3t to ee30t(o# (# "33or$"#3e 6(t te R04e%.[:=]+0$e% tereore ")e te m(#(%ter("4 "#$ m"#$"tor& $0t& to (mp4eme#t "#$ e#or3e (t.[:1]

To be )"4($, " 3omprom(%e "reeme#t (% mere4& re0(re$ b& 4"6, r%t, to be b"%e$ o# re"4 34"(m% %e3o#$, to be "3t0"44&"ree$ 0po# (# oo$ "(t.[::] ot 3o#$(t(o#% "re pre%e#t (# t(% 3"%e. Te 34"(m% o te p"rt(e% "re )"4($, "#$ te

"reeme#t $o#e 6(to0t "#& r"0$ or )(3e o 3o#%e#t.

@(to0t " $o0bt, e"3 o te p"rt(e% ere(# e#tere$ (#to !omprom(%e Areeme#t ree4& "#$ )o40#t"r(4&. @e# te&3"re044& #eot("te$ te term% "#$ pro)(%(o#% tereo, te& 6ere "$e0"te4& "%%(%te$ b& te(r re%pe3t()e 3o0#%e4% 0$(3("4 Or$er "ppro)(# (t 0r& to re%po#$e#t. Gr"#t(# "r0e#$o %03 4o%% or $e%tr03t(o#, te !r(%tm"% %e"%o# 3o04$ #ot ")e bee#te %o4e "#$ pro(m"te 3"0%e tereo.


17/18

T(r$, te o330rre#3e o te !r(%tm"% %e"%o# $($ #ot "t "44 re#$er (mpo%%(b4e te #orm"4 0444me#t o te ob4("t(o#o pet(t(o#er oter6(%e, e6 34"(m% 6o04$ e)er be p"($ $0r(# t(% per(o$. It o0t to ")e t"Je# "ppropr("teme"%0re% to e#%0re t"t " $e4"& 6o04$ be ")o($e$. @e# (t e#tere$ (#to te Areeme#t, (t J#e6 044& 6e44 t"t te ;=0$(3("4 "ppro)"4 6"% #ot re0(re$ or te pere3t(o# o t"t Areeme#t o#3e

(t 6"% r"#te$, (t 3o04$ #ot "#$ m0%t #ot be $(%t0rbe$ e3ept or )(3e% o 3o#%e#t or orer&.[;]

No %03 (#rm(t& 3"# be o0#$ (# te %0b>e3t !omprom(%e Areeme#t. It% term% "re 34e"r "#$ 4e")e #o $o0bt "% tote(r (#te#t(o#. T0%, te 4(ter"4 me"#(# o (t% %t(p04"t(o#% m0%t 3o#tro4.[] It m0%t be %tr(3t4& (#terprete$ "#$ 0#$er%too$ "% (#340$(# o#4& m"tter% %pe3(3"44& $eterm(#e$ tere(# or 6(3, b& #e3e%%"r& (#ere#3e rom (t%6or$(#, m0%t be $eeme$ (#340$e$.[5]

Te 4o6er 3o0rt 6"% 6(to0t po6er to re4(e)e pet(t(o#er rom "# ob4("t(o# (t "$ )o40#t"r(4& "%%0me$, %(mp4& be3"0%ete Areeme#t 4"ter t0r#e$ o0t to be 0#6(%e, $(%"%tro0% or oo4(%.[K] It "$ #o "0tor(t& to (mpo%e 0po# te p"rt(e% ">0$me#t $(Fere#t rom or ""(#%t te term% "#$ 3o#$(t(o#% o te(r !omprom(%e Areeme#t.[7] It 3o04$ #ot "4ter "3o#tr"3t b& 3o#%tr03t(o# or m"Je " #e6 o#e or te p"rt(e% (t% $0t& (% 3o##e$ to te (#terpret"t(o# o te o#e 6(3te& ")e m"$e or tem%e4)e% 6(to0t re"r$ to (t% 6(%$om or o44& "% te 3o0rt 3"##ot %0pp4& m"ter("4 %t(p04"t(o#% orre"$ (#to te 3o#tr"3t 6or$% 6(3 (t $oe% #ot 3o#t"(#.[8] It 3o04$ #ot e)e# %et "%($e (t% >0$me#t 6(to0t $e34"r(#(# "# (#3($e#t"4 e"r(# t"t te Areeme#t 6"% )(t("te$ b& "#& o te ro0#$% e#0mer"te$ (# Art(34e :=;8 o te !()(4!o$e.[9] Abo)e "44, #e(ter te Areeme#t #or te 3o0rt?% "ppro)"4 o (t 6"% e)er 0e%t(o#e$ or "%%"(4e$ b& te

p"rt(e%.

"%(3 (% te r04e t"t ( " p"rt& "(4% or re0%e% to "b($e b& " 3omprom(%e "reeme#t, te oter m"& e(ter e#or3e (t orre"r$ (t "% re%3(#$e$ "#$ (#%(%t 0po# te or((#"4 $em"#$.[5=] 'or "(40re o pet(t(o#er to "b($e b& te >0$(3("43omprom(%e, re%po#$e#t 3o%e to e#or3e (t. Te 4"tter?% 3o0r%e o "3t(o# 6"% (# "33or$"#3e 6(t te )er& %t(p04"t(o#%(# te Areeme#t t"t te 4o6er 3o0rt 3o04$ #ot 3"#e.[51]

Re%po#$e#t (% t0% e#t(t4e$ to " 6r(t o ee30t(o# or te tot"4 "mo0#t 3o#t"(#e$ (# te !omprom(%e Areeme#t. Te!o0rt 3"##ot re$03e (t. Te p"rt("4 p"&me#t m"$e b& pet(t(o#er $oe% #ot "t "44 3o#tr")e#e Art(34e 1::9 o te !()(4!o$e,[5:] 6(3 (% "pp4(3"b4e o#4& to 3o#tr"3t% t"t "re te %0b>e3t% o 4(t("t(o#, #ot to #"4 "#$ ee30tor& >0$me#t%.[5;]

E%toppe4 I#"pp4(3"b4e


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*et(t(o#er?% "ttempt to p0t re%po#$e#t (# e%toppe4 m0%t be %tr03J $o6#. I# e%toppe4, " per%o#, 6o b& (% "3t or3o#$03t "% (#$03e$ "#oter to "3t (# " p"rt(304"r m"##er, (% b"rre$ rom "$opt(# "# (#3o#%(%te#t po%(t(o#, "tt(t0$e or3o0r%e o 3o#$03t t"t tereb& 3"0%e% 4o%% or (#>0r& to "#oter.[5] No %03 (#3o#%(%te#3& (% pre%e#t ere. 'rom te)er& %t"rt, re%po#$e#t 6"% "4re"$& "%J(# te 3o0rt% to e#or3e "44 (t% 34"(m%, p0r%0"#t to te Areeme#t. It "% #ot%o6# "#& "3t or 3o#$03t t"t 6o04$ 4e"$% 0% to be4(e)e t"t b& "33ept(# pet(t(o#er?% p"rt("4 p"&me#t, (t "% $roppe$"44 34"(m% to 6(3 (t (% e#t(t4e$.

!ert"(#4&, "# ob4("t(o# m"& be et(#0(%e$ b& p"&me#t,[55] b0t t(% r04e "pp4(e% 6e# te 3re$(tor re3e()e% "#$"3J#o64e$e% 044 p"&me#t[5K] rom te $ebtor. Re%po#$e#t "% #e(ter "3J#o64e$e$ 044 p"&me#t #or 4e$pet(t(o#er to be4(e)e t"t (t "%. L"3J o re%er)"t(o# or prote%t $oe% #ot (p%o "3to 3o#%t(t0te " 6"()er o 34"(m%.e3"0%e e%toppe4 %o04$ be "pp4(e$ 6(t 3"0t(o#, te "3t(o# t"t ()e% r(%e to (t m0%t be $e4(ber"te "#$ 0#e0()o3"4.[57]

I# te pre%e#t 3"%e, re%po#$e#t 3o#t(#0e$ to p0r%0e te ee30t(o# o (t% tot"4 $em"#$ o *1;,118,1:9.8, e)e# "terre3e()(# *5,9K,:9.;1 rom pet(t(o#er. T(% 3o#t(#0e$ p0r%0(t %(#(e$ te ormer?% (#te#t #ot to 6"()e (t% tot"4 34"(m.He#3e, (t 3"##ot be 3o#%($ere$ e%toppe$ rom e#or3(# %03 34"(m.

Te "ppe44"te 3o0rt 6"% 3orre3t (# %tr(3t4& o44o6(# te Areeme#t b& $e$03t(# te "mo0#t re3e()e$ b& re%po#$e#trom te 4"tter?% tot"4 34"(m. e%($e%, 0e%t(o#% r"(%e$ o# "ppe"4 m0%t be 6(t(# te (%%0e% r"me$ b& te p"rt(e%"#$, 3o#%e0e#t4&, (%%0e% #ot r"(%e$ (# te tr("4 3o0rt 3"##ot be r"(%e$ or te r%t t(me o# "ppe"4.[58] A#& "%%ert(o#o e0(t& m0%t #"44& be %tr03J $o6# 6e# $(4"tor& %3eme% e(%t.[59]

@HERE'ORE, te *et(t(o# (% ereb& DENIED, "#$ te "%%"(4e$ De3(%(o# A''IRMED. !o%t% ""(#%t pet(t(o#er.

SO ORDERED.

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