The case involved a Memorandum of Agreement between Unlad Resources Development Corporation and several individuals including Renato Dragon for Unlad to invest in and take control of a Rural Bank. Unlad failed to fully comply with the agreement. The respondents filed to rescind the agreement and return control of the bank. The trial court ruled in favor of the respondents, rescinding the agreement and ordering Unlad to return control of the bank, return funds, and pay damages and attorney's fees.
The case involved a Memorandum of Agreement between Unlad Resources Development Corporation and several individuals including Renato Dragon for Unlad to invest in and take control of a Rural Bank. Unlad failed to fully comply with the agreement. The respondents filed to rescind the agreement and return control of the bank. The trial court ruled in favor of the respondents, rescinding the agreement and ordering Unlad to return control of the bank, return funds, and pay damages and attorney's fees.
The case involved a Memorandum of Agreement between Unlad Resources Development Corporation and several individuals including Renato Dragon for Unlad to invest in and take control of a Rural Bank. Unlad failed to fully comply with the agreement. The respondents filed to rescind the agreement and return control of the bank. The trial court ruled in favor of the respondents, rescinding the agreement and ordering Unlad to return control of the bank, return funds, and pay damages and attorney's fees.
The case involved a Memorandum of Agreement between Unlad Resources Development Corporation and several individuals including Renato Dragon for Unlad to invest in and take control of a Rural Bank. Unlad failed to fully comply with the agreement. The respondents filed to rescind the agreement and return control of the bank. The trial court ruled in favor of the respondents, rescinding the agreement and ordering Unlad to return control of the bank, return funds, and pay damages and attorney's fees.
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CASE DIGEST
Unlad Resources Development Corporation, et. al vs. Renato P. Dragon, et. al
G.R. No. 149338, July 28, 2008
Unlad Resources Development Corporation, Unlad Rural Bank Of Noveleta, Inc., Unlad Commodities, Inc., Helena Z. Benitez, And Conrado L. Benitez Ii, Petitioners vs. Renato P. Dragon, Tarcisius R. Rodriguez, Vicente D. Casas, Romulo M. Virata, Flaviano Perdito, Teotimo Benitez, Elena Benitez, And Rolando Suarez, Respondents.
Facts:
a) December 29, 1981- The parties entered into a Memorandum of Agreement that UNLAD will invest in additional stocks worth Php 4.8M and pay up immediately Php 1.2M for the said subscription while the respondents, Dragon and company, shall transfer control and management over the Rural Bank to UNLAD Resources. b) August 10, 1984- The Board of Directors of Unlad Resources passed Resolution No. 84-041 authorizing the President and the General Manager to lease a mango plantation, the Bank as lessee entered into a Contract of Lease with the petitioner, Helena Z. Benitez as lessor. c) May 20, 1987- Unlad Rural Bank wrote regarding Central Bank’s approval to retire its preferred shares. The respondents complied with their obligation but the petitioners did not. d) July 3, 1987- The respondents filed a complaint before the Regional Trial Court for rescission of the agreement and the return of control and management of the Rural Bank from petitioners to respondents, plus damages.
Issue: The main issue in this case is the rescission of the Memorandum of Agreement.
Rulings: Decision of the Regional Trial Court The Regional Trial Court rendered the following:
1) Memorandum of Agreement declared rescinded ordering the Defendant UNLAD
Resources to return control and management over the Rural Bank to Plaintiffs; and the UNLAD Rural Bank to return to Defendants the sum of Php 1,003,070.00; 2) The Director for Rural Bank of Bangko Sentral ng Pilipinas appointed as Receiver of the Rural Bank; 3) UNLAD Rural Bank is hereby enjoined from placing the retired preferred shares available for subscription and ordered to be placed under a sinking fund; 4) UNLAD Resources is ordered to pay Plaintiffs the actual compensatory damages amounting to Php 4,601,765.38; pay moral damages in the amount of Php 500,000.00; pay exemplary and corrective damages in the amount of Php 100,000.00; and pay attorney’s fees in the sum of Php 100,000.00, plus cost of suit.
134 Siao Aba, Miko Lumabao, Almasis Lauban, and Benjamin Danda, Complainants, vs. Attys. Salvador de Guzman, JR., Wenceslao "Peewee" Trinidad, and Andresito Fornier
