22. EXPERTTRABEL & TOURS, INC. VS COURT OF APPEALS allow subsequent compliance with the rule.

 If the authority of a party’s counsel to
execute a certificate of non­forum shopping is disputed by the adverse party, the
G.R. No. 152392. May 26, 2005. *
former is required to show proof of such authority or representation. In this case,
EXPERTRAVEL   &   TOURS,   INC.,   petitioner, vs. COURT   OF   APPEALS   and
the   petitioner,   as   the   defendant   in   the   RTC,   assailed   the   authority   of   Atty.
KOREAN AIRLINES, respondents. Aguinaldo   to   execute   the   requisite   verification   and   certificate   of   non­forum
Actions; Pleadings   and   Practice; Certificate   of   Non­Forum shopping   as   the   resident   agent   and   counsel   of   the   respondent.   It   was,   thus,
Shopping; Corporations; The   requirement   to   file   a   certificate   of   non­forum incumbent upon the respondent, as the plaintiff, to allege and establish that Atty.
shopping is mandatory and the failure to comply with this requirement cannot be Aguinaldo   had   such   authority   to   execute   the   requisite   verification   and
excused;   Where   the   plaintiff   is   a   private   corporation,   the   certification   may   be certification for and in its behalf. The respondent, however, failed to do so.
signed,   for   and   on   behalf   of   the   said   corporation,   by   a   specifically   authorized Same; Same; Same; Same; Same; Foreign   Corporations; Resident
person, including its retained counsel, who has personal knowledge of the facts Agents; Being a resident agent of a foreign corporation does not mean that he is
required to be established by the documents.—It is settled that the requirement to authorized to execute the requisite certification against forum shopping—while a
file   a   certificate   of   non­forum   shopping   is   mandatory   and   that   the   failure   to resident   agent   may   be   aware   of   actions   filed   against   his   principal   (a   foreign
comply with this requirement cannot be excused. The certification is a peculiar corporation doing business in the Philippines), he may not be aware of actions
and personal responsibility of the party, an assurance given to the court or other initiated   by   its   principal,   whether   in   the   Philippines   against   a   domestic
tribunal   that   there   are   no   other   pending   cases   involving   basically   the   same corporation or private individual, or in the country where such corporation was
parties, issues and causes of action.
organized and registered, against a Philippine registered corporation or a Filipino
_______________ citizen.—While  Atty.  Aguinaldo is   the resident agent  of  the respondent  in  the
Philippines, this does not mean
 SECOND DIVISION.
* 149
148 VOL. 459, MAY 26, 2005 149
148 SUPREME COURT REPORTS ANNOTATED Expertravel & Tours, Inc. vs. Court of Appeals
that he is  authorized  to execute the requisite certification against  forum
Expertravel & Tours, Inc. vs. Court of Appeals
Hence, the certification must be accomplished by the party himself because shopping. Under Section 127, in relation to Section 128 of the Corporation Code,
he has  actual knowledge of whether or not he has  initiated  similar actions or the  authority  of the  resident agent  of a  foreign  corporation  with license to  do
proceedings in different courts or tribunals. Even his counsel may be unaware of business   in   the   Philippines   is   to   receive,   for   and   in   behalf   of   the   foreign
such facts. Hence, the requisite certification executed by the plaintiff’s counsel corporation,   services   and   other   legal   processes   in   all   actions   and   other   legal
will   not   suffice.   In   a   case   where   the   plaintiff   is   a   private   corporation,   the proceedings against such corporation, thus: * * * Under the law, Atty. Aguinaldo
certification   may   be   signed,   for   and   on   behalf   of   the   said   corporation,   by   a was not specifically authorized to execute a certificate of non­forum shopping as
specifically authorized person, including its retained counsel, who has personal required   by   Section   5,   Rule   7   of   the   Rules   of   Court.   This   is   because   while   a
knowledge of the facts required to be established by the documents. resident   agent   may   be   aware   of   actions   filed   against   his   principal   (a   foreign
corporation doing business in the Philippines), such resident may not be aware of
Same; Same; Same; Same; Attorneys; The certificate of non­forum shopping
actions initiated by its principal, whether in the Philippines against a domestic
may be incorporated in the complaint or appended thereto as an integral part of corporation or private individual, or in the country where such corporation was
the complaint; If the authority of a party’s counsel to execute a certificate of non­ organized and registered, against a Philippine registered corporation or a Filipino
forum shopping is disputed by the adverse party, the former is required to show citizen.
proof of such authority or representation.—The certificate of non­forum shopping Same; Evidence; Judicial Notice; The principal guide in determining what
may be incorporated in the complaint or appended thereto as an integral part of facts   may   be   assumed   to   be   judicially   known   is   that   of   notoriety.—Generally
the complaint. The rule is that compliance with the rule after the filing of the speaking, matters of judicial notice have three material requisites: (1) the matter
complaint, or the dismissal of a complaint based on its non­compliance with the must   be   one   of   common   and   general   knowledge;   (2)   it   must   be   well   and
rule,   is   impermissible.   However,   in   exceptional   circumstances,   the   court   may authoritatively settled and not doubtful or uncertain; and (3) it must be known to

Page 1 of 10
be   within   the   limits   of   the   jurisdiction   of   the   court.   The   principal   guide   in communication via the   telephone   with   optional   capacity   for   telewriting   or
determining   what   facts   may   be   assumed   to   be   judicially   known   is   that   of telecopying. A teleconference represents a unique alternative to face­to­face (FTF)
notoriety. Hence, it can be said that judicial notice is limited to facts evidenced by meetings.   It   was   first   introduced   in   the   1960’s   with   American   Telephone   and
public records and facts of general notoriety. Moreover, a judicially noticed fact Telegraph’s Picturephone. At that time, however, no demand existed for the new
must be one not subject to a reasonable dispute in that it is either: (1) generally technology. Travel costs were reasonable and consumers were unwilling to pay
known   within   the   territorial   jurisdiction   of   the   trial   court;   or   (2)   capable   of the monthly service charge for using the picturephone, which was regarded as
accurate and ready determination by resorting to sources whose accuracy cannot more of a novelty than as an actual means for everyday communication. In time,
reasonably be questionable. people found it advantageous to hold teleconferencing in the course of business
Same; Same; Same; A court cannot take judicial notice of any fact which, in and corporate governance, because of the money saved, among other advantages.
part, is dependent on the existence or non­existence of a fact which the court has no Same; Same; Same; Same; Same; Corporation   Law; In   the   Philippines,
constructive   knowledge.—Things   of   “common   knowledge,”   of   which   courts   take teleconferencing   and   videoconferencing   of   members   of   the   board   of   directors   of
judicial matters coming to the knowledge of men generally in the course of the private corporations is a reality in light  of R.A. No. 8792.—In the Philippines,
ordinary experiences of life, or they may be matters which are generally accepted teleconferencing and videoconferencing of members of board of directors of private
by mankind as true and are capable of ready and unquestioned demonstration. corporations is a reality, in light of Republic Act No. 8792. The Securities and
Thus,   facts   which   are   universally   known,   and   which   may   be   found   in Exchange Commission issued SEC Memorandum Circular No. 15, on November
encyclopedias, dictionaries or other publications, are judicially noticed, provided, 30, 2001, providing the guide­
they are of such universal notoriety and so generally understood that they may be 151
regarded   as   forming   part   of   the   common   knowledge   of   every   person.   As   the
VOL. 459, MAY 26, 2005 151
common
150 Expertravel & Tours, Inc. vs. Court of Appeals
lines   to   be   complied   with   related   to   such   conferences.   Thus,   the   Court
150 SUPREME COURT REPORTS ANNOTATED
agrees with the RTC that persons in the Philippines may have a teleconference
Expertravel & Tours, Inc. vs. Court of Appeals with   a   group   of   persons   in   South   Korea   relating   to   business   transactions   or
knowledge of man ranges far and wide, a wide variety of particular facts corporate governance.
have been judicially noticed as being matters of common knowledge. But a court
cannot take judicial notice of any fact which, in part, is dependent on the existence PETITION for review on certiorari of the decision of the Court of Appeals.
or non­existence of a fact of which the court has no constructive knowledge.
The facts are stated in the opinion of the Court.
Same; Same; Same; Telecommunications; Teleconferencing; Types; Words
     Purita Hontanosas­Cortes for petitioner.
and Phrases; In this age of modern technology, the courts may take judicial notice
that business transactions may be made by individuals through teleconferencing;
CALLEJO, SR., J.:
Teleconferencing is interactive group communication (three or more people in two
or more locations) through an electronic medium, bringing people together under
Before   us   is   a   petition   for  review   on certiorari of  the   Decision1 of  the   Court  of
one  roof  even  though  they  are  separated  by  hundreds  of  miles.—In  this   age  of Appeals   (CA)   in   CA­G.R.   SP   No.   61000   dismissing   the   petition
modern technology, the courts may take judicial notice that business transactions
for certiorari and mandamusfiled by Expertravel and Tours, Inc. (ETI).
may   be   made   by   individuals   through   teleconferencing.   Teleconferencing   is
interactive group communication (three or more people in two or more locations) The Antecedents
through   an   electronic   medium.   In   general   terms,   teleconferencing   can   bring
Korean Airlines (KAL) is a corporation established and registered in the Republic
people together under one roof even though they are separated by hundreds of
of   South   Korea   and   licensed   to   do   business   in   the   Philippines.   Its   general
miles. This type of group communication may be used in a number of ways, and
manager in the Philippines is Suk Kyoo Kim, while its appointed counsel was
have   three   basic   types:   (1)   video   conferencing—television­like   communication
Atty. Mario Aguinaldo and his law firm.
augmented   with   sound;   (2)   computer   conferencing—printed   communication
On   September   6,   1999,   KAL,   through   Atty.   Aguinaldo,   filed   a
through   keyboard   terminals,   and   (3)   audio­conferencing—verbal
Complaint2 against ETI with the Regional Trial Court (RTC) of Manila, for the
Page 2 of 10
collection   of   the   principal   amount   of   P260,150.00,   plus   attorney’s   fees   and 3
 Rollo, p. 109.
exemplary   damages.   The   verification   and   certification   against   forum   shopping 4
Id., at pp. 47­50.
was signed by Atty. Aguinaldo, who indicated therein that he was the resident 153
agent and legal counsel of KAL and had caused the preparation of the complaint.
VOL. 459, MAY 26, 2005 153

_______________ Expertravel & Tours, Inc. vs. Court of Appeals

ETI filed a motion for the reconsideration of the Order, contending that it was
 Penned by Associate Justice Elvi John S. Asuncion, with Associate Justices
1 inappropriate   for   the   court   to   take   judicial   notice   of   the   said   teleconference
Romeo A. Brawner (now Presiding Justice) and Juan Q. Enriquez, Jr., concurring; without any prior hearing. The trial court denied the motion in its Order 5dated
Rollo, pp. 27­30. August 8, 2000.
2
 Rollo, pp. 53­56. ETI then filed a petition for certiorari and mandamus, assailing the orders of
152 the RTC. In its comment on the petition, KAL appended a certificate signed by
Atty. Aguinaldo dated January 10, 2000, worded as follows:
152 SUPREME COURT REPORTS ANNOTATED
Expertravel & Tours, Inc. vs. Court of Appeals SECRETARY’S/RESIDENT AGENT’S CERTIFICATE
ETI filed a motion to dismiss the complaint on the ground that Atty. Aguinaldo
was   not   authorized   to   execute   the   verification   and   certificate   of   non­forum KNOW ALL MEN BY THESE PRESENTS:
shopping as required by Section 5, Rule 7 of the Rules of Court. KAL opposed the I,   Mario   A.   Aguinaldo,   of   legal   age,   Filipino,   and   duly   elected   and   appointed
motion,   contending   that   Atty.   Aguinaldo   was   its   resident   agent   and   was Corporate   Secretary   and   Resident   Agent   of   KOREAN   AIRLINES,   a   foreign
registered   as   such   with   the   Securities   and   Exchange   Commission   (SEC)   as corporation duly organized and existing under and by virtue of the laws of the
required by the Corporation Code of the Philippines. It was further alleged that Republic of Korea and also duly registered and authorized to do business in the
Atty. Aguinaldo was also the corporate secretary of KAL. Appended to the said Philippines, with office address at Ground Floor, LPL Plaza Building, 124 Alfaro
opposition was the identification card of Atty. Aguinaldo, showing that he was the St.,   Salcedo   Village,   Makati   City,   HEREBY   CERTIFY   that   during   a   special
lawyer of KAL. meeting of the Board of Directors of the Corporation held on June 25, 1999 at
During the hearing of January 28, 2000, Atty. Aguinaldo claimed that he had which a quorum was present, the said Board unanimously passed, voted upon and
been authorized to file the complaint through a resolution of the KAL Board of approved the following resolution which is now in full force and effect, to wit:
Directors  approved  during  a special  meeting  held  on June 25, 1999. Upon his RESOLVED,   that   Mario   A.   Aguinaldo   and   his   law   firm   M.A.   Aguinaldo   &
motion, KAL was given a period of 10 days within which to submit a copy of the Associates or any of its lawyers are hereby appointed and authorized to take with
said resolution. The trial court granted the motion. Atty. Aguinaldo subsequently whatever legal action necessary to effect the collection of the unpaid account of
filed other similar motions, which the trial court granted. Expert   Travel   &   Tours.   They   are   hereby   specifically   authorized   to   prosecute,
Finally, KAL submitted on March 6, 2000 an Affidavit 3of even date, executed litigate, defend, sign and execute any document or paper necessary to the filing
by   its   general   manager   Suk   Kyoo   Kim,   alleging   that   the   board   of   directors and   prosecution   of   said   claim   in   Court,   attend   the   Pre­Trial   Proceedings   and
conducted   a   special   teleconference   on   June   25,   1999,   which   he   and   Atty. enter into a compromise agreement relative to the abovementioned claim.
Aguinaldo attended. It was   also averred   that in  that same  teleconference, the IN WITNESS WHEREOF, I have hereunto affixed my signature this 10th day
board of directors approved a resolution authorizing Atty. Aguinaldo to execute of January, 1999, in the City of Manila, Philippines.
the certificate of non­forum shopping and to file the complaint. Suk Kyoo Kim
also alleged, however, that the corporation had no written copy of the aforesaid _______________
resolution.
On   April   12,   2000,   the   trial   court   issued   an   Order 4denying   the   motion   to 5
 Rollo, pp. 51­52.
dismiss, giving credence to the claims of Atty. Aguinaldo and Suk Kyoo Kim that 154
the KAL Board of Directors indeed conducted a teleconference on June 25, 1999,
154 SUPREME COURT REPORTS ANNOTATED
during which it approved a resolution as quoted in the submitted affidavit.
Expertravel & Tours, Inc. vs. Court of Appeals
_______________

Page 3 of 10
 (Sgd.)  general manager, as well as  the Secretary’s/Resident Agent’s Certification and
MARIO A. AGUINALDO  the resolution of the board of directors contained therein, as proof of compliance
Resident Agent with the requirements of Section 5, Rule 7 of the Rules of Court. The petitioner
SUBSCRIBED AND SWORN to before me this 10th day of January, 1999, also maintains that the RTC cannot take judicial notice of the said teleconference
Atty. Mario A. Aguinaldo exhibiting to me his Community Tax Certificate No. without   prior   hearing,   nor   any   motion   therefor.   The   petitioner   reiterates   its
14914545, issued on January 7, 2000 at Manila, Philippines. submission   that   the   teleconference   and   the   resolution   adverted   to   by   the
respondent was a mere fabrication.
(Sgd.) The   respondent,   for   its   part,   avers   that   the   issue   of   whether   modern
technology is  used in the field  of business is a factual issue; hence, cannot be
Doc. No. 119;      ATTY. HENRY D. ADASA  raised in a petition for review on certiorari under Rule 45 of the Rules of Court.
Page No.25;           Notary Public  On the merits of the petition, it insists that Atty. Aguinaldo, as the resident agent
Book No. XXIV      Until December 31, 2000  and corporate secretary, is authorized to sign and execute the certificate of non­
Series of 2000.      PTR #889583/MLA 1/3/20006 forum shopping required by Section 5, Rule 7 of the Rules of Court, on top of the
board   resolution   approved   during   the   teleconference   of   June   25,   1999.   The
On December 18, 2001, the CA rendered judgment dismissing the petition, ruling respondent   insists   that   “technological   advances   in   this   time   and   age   are   as
that   the   verification   and   certificate   of   non­forum   shopping   executed   by   Atty. commonplace as daybreak.” Hence, the courts may take judicial notice that the
Aguinaldo was sufficient compliance with the Rules of Court. According to the Philippine   Long   Distance   Telephone   Company,   Inc.   had   provided   a   record   of
appellate court, Atty. Aguinaldo had been duly authorized by the board resolution corporate   conferences   and   meetings   through   FiberNet   using   fiber­optic
approved on June 25, 1999, and was the resident agent of KAL. As such, the RTC transmission   technology,   and   that   such   technology   facilitates   voice   and   image
could not be faulted for taking judicial notice of the said teleconference of the KAL transmission with ease; this makes constant communication between a foreign­
Board of Directors. based office and its Philippine­based branches faster and easier, allowing for cost­
ETI   filed   a   motion   for   reconsideration   of   the   said   decision,   which   the   CA cutting in terms of travel concerns. It points out that even the E­Commerce Law
denied. Thus, ETI, now the petitioner, comes to the Court by way of petition for has recognized this modern technology. The respondent posits that the courts are
review on certiorari and raises the following issue: aware of this development in technology; hence, may take judicial notice thereof
DID   PUBLIC   RESPONDENT   COURT   OF   APPEALS   DEPART   FROM   THE without need of hearings. Even if such hearing is required, the requirement is
ACCEPTED AND USUAL COURSE OF JUDICIAL PROCEEDINGS WHEN IT nevertheless satisfied if a party is allowed to file pleadings by way of comment or
RENDERED   ITS   QUESTIONED   DECISION   AND   WHEN   IT   ISSUED   ITS opposition thereto.
QUESTIONED   RESOLUTION,   ANNEXES   “A”   AND   “B”   OF   THE   INSTANT In its reply, the petitioner pointed out that there are no rulings on the matter
PETITION?7 of teleconferencing as a means of conducting meet­
The petitioner  asserts  that compliance  with Section 5, Rule  7, of the Rules  of 156
Court   can   be   determined   only   from   the   contents   of   the   complaint   and   not   by 156 SUPREME COURT REPORTS ANNOTATED
documents or pleadings outside thereof.
Expertravel & Tours, Inc. vs. Court of Appeals
ings  of board  of directors  for purposes  of passing a resolution;  until and  after
_______________
teleconferencing is  recognized as a legitimate means of gathering a quorum of
board of directors, such cannot be taken judicial notice of by the court. It asserts
6
 Rollo, p. 108.
that safeguards must first be set up to prevent any mischief on the public or to
7
Id., at p. 18. protect the general public from any possible fraud. It further proposes possible
155 amendments to the Corporation Code to give recognition to such manner of board
VOL. 459, MAY 26, 2005 155 meetings   to   transact   business   for   the   corporation,   or   other   related   corporate
Expertravel & Tours, Inc. vs. Court of Appeals matters; until then, the petitioner asserts, teleconferencing cannot be the subject
Hence, the trial court committed grave abuse of discretion amounting to excess of of judicial notice.
jurisdiction,   and   the  CA   erred   in   considering   the  affidavit   of   the  respondent’s The petitioner further avers that the supposed holding of a special meeting on
June 25, 1999 through teleconferencing where Atty. Aguinaldo was supposedly
Page 4 of 10
given   such   an   authority   is   a   farce,   considering   that   there   was   no   mention   of facts.9 Hence, the requisite certification executed by the plaintiff’s counsel will not
where   it   was   held,   whether   in   this   country   or   elsewhere.   It   insists   that   the suffice.10
Corporation Code requires board resolutions of corporations to be submitted to In a case where the plaintiff is a private corporation, the certification may be
the SEC. Even assuming that there was such a teleconference, it would be against signed,   for   and   on   behalf   of   the   said   corporation,   by   a   specifically   authorized
the provisions of the Corporation Code not to have any record thereof. person, including its retained counsel, who has personal knowledge of the facts
The petitioner insists that the teleconference and resolution adverted to by required to be established by the documents. The reason was explained by the
the respondent in its pleadings were mere fabrications foisted by the respondent Court in National Steel Corporation v. Court of Appeals,11 as follows:
and its counsel on the RTC, the CA and this Court.
The petition is meritorious. _______________
Section 5, Rule 7 of the Rules of Court provides:
SEC.  5. Certification   against   forum  shopping.—The  plaintiff   or   principal   party  Melo v. Court of Appeals, G.R. No. 123686, 16 November 1999, 318 SCRA 94.
8

shall certify under oath in the complaint or other initiatory pleading asserting a Digital   Microwave   Corporation   v.   Court   of   Appeals, G.R.   No.   128550,   16

9

claim for relief, or in a sworn certification annexed thereto and simultaneously March 2000, 328 SCRA 286.
filed therewith: (a) that he has not theretofore commenced any action or filed any 10
 United   Residents   Dominican   Hill,   Inc.   v.   COSLAP, G.R.   No.   135945,   7
claim involving the same issues in any court, tribunal or quasi­judicial agency
March 2001, 353 SCRA 782.
and, to the best of his knowledge, no such other action or claim is pending therein; 11
 G.R. No. 134468, 29 August 2002, 388 SCRA 85.
(b) if there is such other pending action or claim, a complete statement of the
158
present   status   thereof;   and   (c)   if   he   should   thereafter   learn   that   the   same   or
similar   action   or   claim   has   been   filed   or   is   pending,   he  shall   report  that   fact 158 SUPREME COURT REPORTS ANNOTATED
within Expertravel & Tours, Inc. vs. Court of Appeals
157 Unlike natural persons, corporations may perform physical actions only through
VOL. 459, MAY 26, 2005 157 properly delegated individuals; namely, its officers and/or agents.
. . .
Expertravel & Tours, Inc. vs. Court of Appeals
The corporation, such as the petitioner, has no powers except those expressly
five (5) days therefrom to the court wherein his aforesaid complaint or initiatory
conferred  on it by  the Corporation  Code and  those that are implied  by or are
pleading has been filed.
incidental to its existence. In turn, a corporation exercises said powers through its
Failure  to comply with  the foregoing  requirements  shall  not be curable by
board of directors and/or its duly­authorized officers and agents. Physical acts,
mere amendment of the complaint or other initiatory pleading but shall be cause
like the signing of documents, can be performed only by natural persons duly­
for the dismissal of the case without prejudice, unless otherwise provided, upon
authorized for the purpose by corporate by­laws or by specific act of the board of
motion   and   after   hearing.   The   submission   of   a   false   certification   or   non­
directors. “All acts within the powers of a corporation may be performed by agents
compliance   with   any   of   the   undertakings   therein   shall   constitute   indirect
of   its   selection;   and   except   so   far   as   limitations   or   restrictions   which   may   be
contempt   of   court,   without   prejudice   to   the   corresponding   administrative   and
imposed   by   special   charter,   by­law,   or   statutory   provisions,   the   same   general
criminal actions. If the acts of the party or his counsel clearly constitute willful
principles of law which govern the relation of agency for a natural person govern
and deliberate forum shopping, the same shall be ground for summary dismissal
the officer or agent of a corporation, of whatever status or rank, in respect to his
with   prejudice   and   shall   constitute   direct   contempt,   as   well   as   a   cause   for
power to act for the corporation; and agents once appointed, or members acting in
administrative sanctions.
their stead, are subject to the same rules, liabilities and incapacities as are agents
It is settled that the requirement to file a certificate of non­forum shopping is
of individuals and private persons.”
mandatory8 and   that   the   failure   to   comply   with   this   requirement   cannot   be
. . .
excused. The certification is a peculiar and personal responsibility of the party, an
. . . For who else knows of the circumstances required in the Certificate but its
assurance given to the court or other tribunal that there are no other pending
own retained counsel. Its regular officers, like its board chairman and president,
cases involving basically the same parties, issues and causes of action. Hence, the
may not even know the details required therein.
certification must be accomplished by the party himself because he has actual
Indeed,   the   certificate   of   non­forum   shopping   may   be   incorporated   in   the
knowledge of whether or not he has initiated similar actions or proceedings in
complaint or appended thereto as an integral part of the complaint. The rule is
different   courts   or   tribunals.   Even   his   counsel   may   be   unaware   of   such
Page 5 of 10
that compliance with the rule after the filing of the complaint, or the dismissal of (Sgd.) 
a   complaint   based   on   its   non­compliance   with   the   rule,   is   impermissible. MARIO A. AGUINALDO 
However,   in   exceptional   circumstances,   the   court   may   allow   subsequent Affiant
compliance   with   the   rule.12 If   the   authority   of   a   party’s   counsel   to   execute   a
certificate of non­forum shopping is disputed by the adverse party, the former is CITY OF MANILA
required to show proof of such authority or representation.
In   this   case,   the   petitioner,   as   the   defendant   in   the   RTC,   assailed   the SUBSCRIBED AND SWORN TO before me this 30th day of August, 1999,
authority of Atty. Aguinaldo to execute the requisite affiant exhibiting to me his Community Tax Certificate No. 00671047 issued on
January 7, 1999 at Manila, Philippines.
_______________ (Sgd.)     
Doc.   No.   1005;       ATTY.   HENRY   D.   ADASA 
 Uy   v.  Land  Bank  of  the  Philippines, G.R.  No.  136100,  24  July  2000, 336
12      Page No. 198;      Notary Public
SCRA 419; and National Steel Corporation v. Court of Appeals, supra. 160
159 160 SUPREME COURT REPORTS ANNOTATED
VOL. 459, MAY 26, 2005 159 Expertravel & Tours, Inc. vs. Court of Appeals
Expertravel & Tours, Inc. vs. Court of Appeals
verification   and   certificate   of   non­forum   shopping   as   the   resident   agent   and Book No. XXI      Until December 31, 2000 
counsel of the respondent. It was, thus, incumbent upon the respondent, as the Series of 1999.      PTR No. 320501 Mla. 1/4/9913
plaintiff,   to   allege   and   establish   that   Atty.   Aguinaldo   had   such   authority   to
execute   the   requisite   verification   and   certification   for   and   in   its   behalf.   The As gleaned from the aforequoted certification, there was no allegation that Atty.
respondent, however, failed to do so. Aguinaldo had been authorized to execute the certificate of non­forum shopping
The verification and certificate of non­forum shopping which was incorporated by the respondent’s Board of Directors; moreover, no such board resolution was
in the complaint and signed by Atty. Aguinaldo reads: appended thereto or incorporated therein.
I,   Mario   A.   Aguinaldo   of   legal   age,   Filipino,   with   office   address   at   Suite   210 While   Atty.   Aguinaldo   is   the   resident   agent   of   the   respondent   in   the
Gedisco Centre,  1564 A.  Mabini  cor.  P. Gil  Sts., Ermita,  Manila,  after  having Philippines, this   does  not  mean that  he is   authorized   to execute  the  requisite
sworn to in accordance with law hereby deposes and say: THAT— certification against forum shopping. Under Section 127, in relation to Section
128   of   the   Corporation   Code,   the   authority   of   the   resident   agent   of   a   foreign
corporation with license to do business in the Philippines is to receive, for and in
1. 1.I am the Resident Agent and Legal Counsel of the plaintiff in the above
behalf of the foreign corporation, services and other legal processes in all actions
entitled case and have caused the preparation of the above complaint;
and other legal proceedings against such corporation, thus:
SEC.   127. Who   may   be   a   resident   agent.—A   resident   agent   may   either   be   an
2. 2.I have read the complaint and that all the allegations contained therein
individual   residing   in   the   Philippines   or   a   domestic   corporation   lawfully
are true and correct based on the records on files;
transacting   business   in   the   Philippines: Provided,   That   in   the   case   of   an
individual, he must be of good moral character and of sound financial standing.
3. 3.I hereby further certify that I have not commenced any other action or
SEC. 128. Resident agent; service of process.—The Securities and Exchange
proceeding involving the same issues in the Supreme Court, the Court
Commission shall require as a condition precedent to the issuance of the license to
of   Appeals,   or   different   divisions   thereof,   or   any   other   tribunal   or
transact   business   in   the   Philippines   by   any   foreign   corporation   that   such
agency. If I subsequently learned that a similar action or proceeding
corporation file with the Securities and Exchange Commission a written power of
has been filed  or is  pending before the Supreme Court, the Court of
attorney designating some persons who must be a resident of the Philippines, on
Appeals, or different divisions thereof, or any tribunal or agency, I will
whom any summons and other legal processes may be served in all actions or
notify   the   court,   tribunal   or   agency   within   five   (5)   days   from   such
other   legal   proceedings   against   such   corporation,   and   consenting   that   service
notice/knowledge.

Page 6 of 10
upon such resident agent shall be admitted and held as valid as if served upon dent agent designated in accordance with law for that purpose, or, if there be
the duly­authorized officers of the foreign corporation as its home office.14 no such agent, on the government official designated by law to that effect, or on
any of its officers or agents within the Philippines.
_______________ 162
162 SUPREME COURT REPORTS ANNOTATED
13
 Rollo, pp. 55­56.
Expertravel & Tours, Inc. vs. Court of Appeals
14
 These provisions are the basis of Section 12, Rule 14 of the Rules of Court,
Generally speaking, matters of judicial notice have three material requisites: (1)
which reads:
the matter must be one of common and general knowledge; (2) it must be well and
SEC. 12. Service upon foreign private juridical entity.—When the defendant is a authoritatively settled and not doubtful or uncertain; and (3) it must be known to
foreign private juridical entity which has transacted business in the Philippines, be   within   the   limits   of   the   jurisdiction   of   the   court.   The   principal   guide   in
service may be made on its resi­ determining   what   facts   may   be   assumed   to   be   judicially   known   is   that   of
161 notoriety. Hence, it can be said that judicial notice is limited to facts evidenced by
VOL. 459, MAY 26, 2005 161 public records and facts of general notoriety.15 Moreover, a judicially noticed fact
Expertravel & Tours, Inc. vs. Court of Appeals must be one not subject to a reasonable dispute in that it is either: (1) generally
Under   the   law,   Atty.   Aguinaldo   was   not   specifically   authorized   to   execute   a known   within   the   territorial   jurisdiction   of   the   trial   court;   or   (2)   capable   of
certificate of non­forum shopping as required by Section 5, Rule 7 of the Rules of accurate and ready determination by resorting to sources whose accuracy cannot
Court.   This   is   because   while   a   resident   agent   may   be   aware   of   actions   filed reasonably be questionable.16
against  his  principal  (a foreign  corporation  doing  business  in  the Philippines), Things of “common knowledge,” of which courts take judicial matters coming
such resident may not be aware of actions initiated by its principal, whether in to the knowledge of men generally in the course of the ordinary experiences of life,
the Philippines  against a domestic  corporation  or private  individual,  or in the or they may be matters which are generally accepted by mankind as true and are
country   where   such   corporation   was   organized   and   registered,   against   a capable   of   ready   and   unquestioned   demonstration.   Thus,   facts   which   are
Philippine registered corporation or a Filipino citizen. universally   known,   and   which   may   be   found   in   encyclopedias,   dictionaries   or
The respondent knew that its counsel, Atty. Aguinaldo, as its resident agent, other   publications,   are   judicially   noticed,   provided,   they   are   of   such   universal
was not specifically authorized to execute the said certification. It attempted to notoriety and so generally understood that they may be regarded as forming part
show its compliance with the rule subsequent to the filing of its complaint by of  the  common  knowledge   of  every   person.  As   the  common  knowledge  of  man
submitting, on March 6, 2000, a resolution purporting to have been approved by ranges far and wide, a wide variety of particular facts have been judicially noticed
its Board of Directors during a teleconference held on June 25, 1999, allegedly as being matters of common knowledge. But a court cannot take judicial notice of
with Atty. Aguinaldo and Suk Kyoo Kim in attendance. However, such attempt of any fact which, in part, is dependent on the existence or non­existence of a fact of
the   respondent   casts   veritable   doubt   not   only   on   its   claim   that   such   a which the court has no constructive knowledge.17
teleconference was held, but also on the approval by the Board of Directors of the In this   age  of modern technology,  the courts   may take  judicial  notice  that
resolution   authorizing   Atty.   Aguinaldo   to   execute   the   certificate   of   non­forum business   transactions   may   be   made   by   individuals   through   teleconferencing.
shopping. Teleconferencing is interactive group communication (three or more people in two
In its April 12, 2000 Order, the RTC took judicial notice that because of the or more locations)
onset of modern technology, persons in one location may confer with other persons
in other places, and, based on the said premise, concluded that Suk Kyoo Kim and _______________
Atty. Aguinaldo had a teleconference with the respondent’s Board of Directors in
South   Korea   on   June   25,   1999.   The   CA,   likewise,   gave   credence   to   the
State   Prosecutors   v.   Muro, A.M.   No.   RTJ­92­876,   19   September   1994, 236
15
respondent’s   claim   that   such   a   teleconference   took   place,   as   contained   in   the
SCRA 505.
affidavit of Suk Kyoo Kim, as well as Atty. Aguinaldo’s certification. 16
Wood v. Astleford, 412 N.W. 2d 753 (1987).
_______________
17
Trepanier v. Toledo & D. C. Ry., Co., 130 N.E. 558.
163
VOL. 459, MAY 26, 2005 163
Page 7 of 10
 Expertravel & Tours, Inc. vs. Court of Appeals 164
through   an   electronic   medium.   In   general   terms,   teleconferencing   can   bring 164 SUPREME COURT REPORTS ANNOTATED
people together under one roof even though they are separated by hundreds of Expertravel & Tours, Inc. vs. Court of Appeals
miles.18This type of group communication may be used in a number of ways, and
have   three   basic   types:   (1)   video   conferencing—television­like   communication 1. 5.Communication between the home office and field staffs is maximized.
augmented   with   sound;   (2)   computer   conferencing—printed   communication
through   keyboard   terminals,   and   (3)   audio­conferencing—verbal
2. 6.Severe   climate   and/or   unreliable   transportation   may   necessitate
communication via the   telephone   with   optional   capacity   for   telewriting   or
teleconferencing.
telecopying.19
A   teleconference   represents   a   unique   alternative   to   face­to­face   (FTF)
meetings.   It   was   first   introduced   in   the   1960’s   with   American   Telephone   and 3. 7.Participants are generally better prepared than for FTF meetings.
Telegraph’s Picturephone. At that time, however, no demand existed for the new
technology. Travel costs were reasonable and consumers were unwilling to pay 4. 8.It is particularly satisfactory for simple problem­solving, information
the monthly service charge for using the picturephone, which was regarded as exchange, and procedural tasks.
more of a novelty than as an actual means for everyday communication. 20 In time,
people found it advantageous to hold teleconferencing in the course of business 5. 9.Group   members   participate   more   equally   in   well­moderated
and corporate governance, because of the money saved, among other advantages teleconferences than an FTF meeting.21
include:
On   the   other   hand,   other   private   corporations   opt   not   to   hold   teleconferences
1. 1.People   (including   outside   guest   speakers)   who   wouldn’t   normally because of the following disadvantages:
attend a distant FTF meeting can participate.
1. 1.Technical   failures   with   equipment,   including   connections   that  aren’t
2. 2.Follow­up to earlier meetings can be done with relative ease and little made.
expense.
2. 2.Unsatisfactory   for   complex   interpersonal   communication,   such   as
3. 3.Socializing   is   minimal   compared   to   an   FTF   meeting;   therefore, negotiation or bargaining.
meetings are shorter and more oriented to the primary purpose of the
meeting. 3. 3.Impersonal, less easy to create an atmosphere of group rapport.

4. 4.Some   routine   meetings   are   more   effective   since   one   can   audio­ 4. 4.Lack of participant familiarity with the equipment, the medium itself,
conference from any location equipped with a telephone. and meeting skills.

_______________ 5. 5.Acoustical problems within the teleconferencing rooms.
18
 J. Carroll, Teleconferencing, CIX Dun’s Business Month, 1 (1982), pp. 130­
6. 6.Difficulty   in   determining   participant   speaking   order;   frequently   one
34, cited in R. Rogan and G. Simons, Teleconferencing, 22 Journal of Extensions 5, person monopolizes the meeting.
20 (September 1984) available at http://joe.org/joe/1984 September/a4 html. (last
visited 20 May 2005).
7. 7.Greater participant preparation time needed.
19
Ibid.
20
 R.   Johansen,   J.   Vallee,   and   K.   Spangler, Electronic   Meetings:   Utopian
8. 8.Informal, one­to­one, social interaction not possible.22
Dreams and Complex Realities, The Futurist, XII (No. 5, 1978), 313­19, supra.

Page 8 of 10
_______________ domestic violence hearings, pretrial conferences, remote witness testimony, and
depositions—to name a few. The technology will prove even more valuable in an
21
 J.   Bartlett, Interesting   Highlights   of   the   Growing   Teleconferencing   Boom, age   of   international   terrorist   trials   with   witnesses   from   around   the   world.
XVII Communication News 12 (1980), 42; Sonneville, Teleconferencing Enters Its Videoconferencing has become quite commonplace in State Courts per the Report.
Growth   Stage;   Stu   Sutherland, Extension   Teleconferencing   in   the   1980’s, The last comprehensive report: “Use of Interactive Video for Court Proceedings:
LII Extension   Service   Review 2   (1981),   12­16;   L.   Parker,   M.   Baird,   and   M. Legal Status and Use Nationwide.” Published in 1995, by the National Institute of
Corrections, is that videoconferencing is used in 50 states in the United States of
Monson, Introduction   to   Teleconferencing(Madison:   University   of   Wisconsin­
America.
Extension,   Center   for   Interactive   Programs,   1982);   and   Rogan   and
166
others, Audioconferencing, supra.
166 SUPREME COURT REPORTS ANNOTATED
22
 Johansen,   Vallee,   and   Spangler, Electronic   Meetings;   Parker,   Baird,   and
Expertravel & Tours, Inc. vs. Court of Appeals
Monson, Introduction to Teleconferencing; Rogan and others, Audioconferencing;
ducted; even if there had been one, the Court is not inclined  to believe that a
and Sonneville, Teleconferencing Enters its Growth Stage, supra.
board resolution was duly passed specifically authorizing Atty. Aguinaldo to file
165
the complaint and execute the required certification against forum shopping.
VOL. 459, MAY 26, 2005 165 The records show that the petitioner filed a motion to dismiss the complaint
Expertravel & Tours, Inc. vs. Court of Appeals on the ground that the respondent failed to comply with Section 5, Rule 7 of the
Indeed, teleconferencing can only facilitate the linking of people; it does not alter Rules of Court. The respondent opposed the motion on December 1, 1999, on its
the   complexity   of   group   communication.   Although   it   may   be   easier   to contention that Atty. Aguinaldo, its resident agent, was duly authorized to sue in
communicate via teleconferencing,   it   may   also   be   easier   to   miscommunicate. its   behalf.   The   respondent,   however,   failed   to   establish   its   claim   that   Atty.
Teleconferencing cannot satisfy the individual needs of every type of meeting.23 Aguinaldo   was   its   resident   agent   in   the   Philippines.   Even   the   identification
In   the   Philippines,   teleconferencing   and   videoconferencing   of   members   of card25 of Atty. Aguinaldo which the respondent appended to its pleading merely
board of directors of private corporations is a reality, in light of Republic Act No. showed that he is the company lawyer of the respondent’s Manila Regional Office.
8792.   The   Securities   and   Exchange   Commission   issued   SEC   Memorandum The   respondent,   through   Atty.   Aguinaldo,   announced   the   holding   of   the
Circular No. 15, on November 30, 2001, providing the guidelines to be complied teleconference only during the hearing of January 28, 2000; Atty. Aguinaldo then
with   related   to   such   conferences.24 Thus,   the   Court   agrees   with   the   RTC   that prayed for ten days, or until February 8, 2000, within which to submit the board
persons in the Philippines may have a teleconference with a group of persons in resolution   purportedly   authorizing   him   to   file   the   complaint   and   execute   the
South Korea relating to business transactions or corporate governance. required   certification   against   forum   shopping.   The   court   granted   the
Even   given   the   possibility   that   Atty.   Aguinaldo   and   Suk   Kyoo   Kim motion.26 The respondent, however, failed to comply, and instead prayed for 15
participated in a teleconference along with the respondent’s Board of Directors, more days to submit the said resolution, contending that it was with its main
the Court is not convinced that one was con­ office in Korea. The court granted the motion per its Order27 dated February 11,
2000. The respondent again prayed for an extension within which to submit the
_______________ said resolution, until March 6, 2000.28 It was on the said date that the respondent
submitted an affidavit of its general manager Suk Kyoo Kim, stating, inter alia,
23
Ibid. that he and Atty. Aguinaldo attended the said teleconference on June 25, 1999,
24
 The Court also approved the Rule on Examination of a child witness which where the Board of Directors supposedly approved the following resolution:
allows live­link television testimony in criminal cases where the child is a victim
or a witness (Section 25), which took effect on December 15, 2000. _______________
The early applications of videoconferencing in the States  in the United  States
courts primarily focused on video arraignments and probable cause hearings. As
25
 Rollo, p. 68.
courts began to appreciate the costs savings and the decreased security risks of
26
Id., at p. 86.
the technology, other uses became apparent. Videoconferencing is an effective tool 27
Id., at p. 87.
for   parole   interviews,   juvenile   detention   hearings,   mental   health   hearings, 28
 Rollo, pp. 90­91.

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 167 Worse still, it appears that as early as January 10, 1999, Atty. Aguinaldo had
VOL. 459, MAY 26, 2005 167 signed   a   Secretary’s/Resident   Agent’s   Certificate   alleging   that   the   board   of
Expertravel & Tours, Inc. vs. Court of Appeals directors held a teleconference on June 25, 1999. No such certificate was appended
RESOLVED,   that   Mario   A.   Aguinaldo   and   his   law   firm   M.A.   Aguinaldo   & to the complaint, which was filed on September 6, 1999. More importantly, the
Associates or any of its lawyers are hereby appointed and authorized to take with respondent did not explain why the said certificate was signed by Atty. Aguinaldo
whatever legal action necessary to effect the collection of the unpaid account of as early as January 9, 1999, and yet was notarized one year later (on January 10,
Expert   Travel   &   Tours.   They   are   hereby   specifically   authorized   to   prosecute, 2000);   it   also   did   not   explain   its   failure   to   append   the   said   certificate   to   the
litigate, defend, sign and execute any document or paper necessary to the filing complaint,   as   well   as   to   its   Compliance   dated   March   6,   2000.   It   was   only   on
and prosecution of said claim in Court, attend the Pre­trial Proceedings and enter January   26,   2001   when   the   respondent   filed   its   comment   in   the   CA   that   it
into a compromise agreement relative to the above­mentioned claim.29 submitted the Secretary’s/Resident Agent’s Certificate30 dated January 10, 2000.
But   then,   in   the   same   affidavit,   Suk   Kyoo   Kim   declared   that   the   respondent The Court is, thus, more inclined to believe that the alleged teleconference on
“do[es] not keep a written copy of the aforesaid Resolution” because no records of June 25, 1999 never took place, and that the resolution allegedly approved by the
board   resolutions   approved   during   teleconferences   were   kept.   This   belied   the respondent’s   Board   of   Directors   during   the   said   teleconference   was   a   mere
respondent’s earlier allegation in its February 10, 2000 motion for extension of concoction purposefully foisted on the RTC, the CA and this Court, to avert the
time to submit the questioned resolution that it was in the custody of its main dismissal of its complaint against the petitioner.
office in Korea. The respondent gave the trial court the impression that it needed IN   LIGHT   OF   ALL   THE   FOREGOING,   the   petition   is   GRANTED.   The
time to secure a copy of the resolution kept in Korea, only to allege later (via the Decision of the Court of Appeals in CA­G.R. SP No. 61000 is REVERSED and
SET ASIDE. The Regional Trial Court of Manila is hereby ORDERED to dismiss,
affidavit of Suk Kyoo Kim) that it had no such written copy. Moreover, Suk Kyoo
without prejudice, the complaint of the respondent.
Kim   stated   in   his   affidavit   that   the   resolution   was   embodied   in   the
SO ORDERED.
Secretary’s/Resident Agent’s Certificate signed by Atty. Aguinaldo. However, no
such resolution was appended to the said certificate.      Puno (Actg.   C.J.,   Chairman), Austria­Martinez and Chico­Nazario,   JJ.,
The   respondent’s   allegation   that   its   board   of   directors   conducted   a concur.
teleconference   on   June   25,   1999   and   approved   the   said   resolution   (with   Atty.      Tinga, J., Out of the Country.
Aguinaldo   in   attendance)   is   incredible,   given   the   additional   fact   that   no   such Petition granted, judgment reversed and set aside.
allegation was made in the complaint. If the resolution had indeed been approved
on June 25, 1999, long before the complaint was filed, the respondent should have _______________
incorporated   it   in   its   complaint,   or   at   least   appended   a   copy   thereof.   The
respondent failed to do so. It was only on January 28, 2000 that the respondent  Rollo, p. 108.
30

claimed, for the first time, that there was such a meeting of the Board of Directors 169
held   on   June   25,   1999;   it   even   represented   to   the   Court   that   a   copy   of   its VOL. 459, MAY 26, 2005 169
resolution was with its main office in Korea, only to allege later that no written
copy existed. It was only on March 6, 2000 that the respondent alleged, for the Marigomen vs. People
first Notes.—Where   the   action   is in   personam,   personal   or,   if   not   possible,
substituted   service   of   summons   on   a   foreign   non­resident   defendant,   not
_______________ extraterritorial service, is necessary to confer jurisdiction over the person of said
defendant and validly hold it liable for damages. (Banco do Brasil vs. Court of
Id., at p. 93.
29
Appeals, 333 SCRA 545 [2000])
168 An ordinary witness cannot establish the value of jewelry and the trial court
168 SUPREME COURT REPORTS ANNOTATED can only take judicial notice of the value of the goods which is a matter of public
knowledge   or   is   capable   of   unquestionable   demonstration.   (People   vs.
Expertravel & Tours, Inc. vs. Court of Appeals
time,   that   the   meeting   of   the   Board   of   Directors   where   the   resolution   was Reinzares, 334 SCRA 624 [2000])
approved was held via teleconference.

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