Case # 4 and # 5 Doctrines
Case # 4 and # 5 Doctrines
Case # 4 and # 5 Doctrines
CASE DOCTRINES
for
CASES #4 and #5
Submitted by:
GROUP 3
Balisco, Herald
Baud, Sittie Rainnie M.
Hamed, Mohamad kalid M.
Minaga-Jamil, Wahida
Manaros, Amer Hussien
Tabao, Moh’d Asrin A.
Fifth Year
Submitted to:
Labor Arbiter Abdul Azis U. Metmug
September 14, 2019
JAIME MONTEALEGRE CHAMON'TE, INC., -versus-
SPOUSES ABRAHAM and REMEDIOS DE VERA,
Case Doctrines:
The doctrine of piercing the corporate veil applies only in three basic areas,
namely: 1) defeat of public convenience as when the corporate fiction is used as a
vehicle for the evasion of an existing obligation; 2) fraud cases or when the
corporate entity is used to justify a wrong, protect fraud, or defend a crime; or 3)
alter ego cases, where a corporation is merely a farce since it is a mere alter ego or
business conduit o f a person, or where the corporation is so organized and
controlled and its affairs are so conducted as to make it merely an instrumentality,
agency, conduit or adjunct of another corporation. In the absence of malice, bad
faith, or a specific provision of law making a corporate officer liable, such
corporate officer cannot be made personally liable for corporate liabilities. 2
The corporate officers are not held solidarily liable with the corporation for
separation pay because the corporation is invested by law with a personality
separate and distinct from those persons composing it as well as from that of any
other legal entity to which it may be related. To hold a director or officer personally
liable for corporate obligation is the exception and it only occurs when the following
requisites are present: (1) the complaint must allege that the director or officer
assented to the patently unlawful acts of the corporation, or that the director or
officer was guilty of gross negligence or bad faith; and (2) there must be proof that
the director or officer acted in bad faith.3
1 Pascual v. Daquioag, G.R. No. 162063, March 31, 2014, 720 SCRA 230, 240-24.
2 Pantranco Employees Association (PEA-PTGWO) v. NLRC. GR No. 170689, March 17, 2019.
3 Lozada v. Mendoza. G.R. No. 196134, October 12, 2016, 805 SCRA 673.
F.F CRUZ & CO., INC. VS. JOSE B. GALANDEZ,
DOMINGO I. SAJUELA, and MARLON D. NAMOC,
iQuillopa v. Quality Guards Services and Investigation Agency, 774 Phil. 198, 206 (2015), citing Omni
Hauling Services, Inc. v. Bon, 742 Phil. 335, 342 (2014)