G.R. No. L-41337 Case Digest

G.R. No. L-41337, June 30, 1988

Tan Boon Bee & Co., Inc.

vs The Hon. Hilarion Jarencio and Graphic Publishing, Inc., and Phil. American Can Drug Company

Ponente: Paras

Facts:

Tan is doing business under the name and style of Anchor Supply Co., sold on credit to Graphics paper products. On December 20, 1972, Graphic made partial payment by check to Tan. Then on 1973 Graphic failed to pay, in consequence, a writ of execution was issued by respondent judge, but the a fore stated writ having expired without the sheriff finding any property of Graphic, an alias writ of execution was issued on July 2, 1974.

Pursuant to the alias writ of execution, the sheriff levied upon 1 unit printing machine found in the premises of Graphic, which is scheduled for auction sale. Then PADCO desist the sheriff from taking the machine saying that the machine is not a property of Graphic. Notwithstanding the letter of PADCO, the sheriff proceeded with the auction sale and sold the property to Tan. Thereafter, the CFI nullified the sale and ruled in favor of PADCO.

Tan filed a motion for reconsideration but the same was denied for lack of merit. Hence,this petition.

Issue:

Whether the Judge gravely abused his discretion when he refused to pierce the PADCO;s identity.

Ruling:

Petitioner's evidence established that PADCO was never engaged in the printing business; that the BOD and officers of Graphic and PADCO were the same; that PADCO holds 50% of stock of Graphic. It was also extablished that the machine was in the premises of Graphics since May 1965 long before PADCO even acquired its alleged title in July 11, 1966.

Thus, respondent judge should pierced PADCO's veil of corporate identity.