Santiago, Pietro Angelo C.
87. V-Gent Inc vs. Morning Star Travel GR No. 186305
PETITIONER: V-GENT, INC.
RESPONDENT: MORNING STAR TRAVEL AND TOURS, INC.,
DATE: July 22, 2015
PONENTE: BRION, J.
TOPIC: Rule 3 - Real Party-in-Interest
Facts:
Petitioner V-Gent, Inc. bought 26 2 two-way plane tickets from the respondent Morning Star Travel and
Tours, Inc. V-Gent returned 15 unused tickets to the respondent. Morning Star refunded only six out of
the 15 tickets. Morning Star refused to refund the remaining 9 unused tickets despite the repeated
demands of V-Gent. As a result, petitioner filed a money claim against the respondent for payment of the
unrefunded amount plus attorney's fees.
Morning Star averred that V-Gent was not entitled to a refund because the tickets were bought under the
airline company's "buy one, take one" promo. It alleged that there were only 14 unused tickets and only 7
of these were refundable; considering that it had already refunded 6 tickets and there was virtually
nothing else to refund. In addition, Morning Star likewise contested V-Gent's personality to file the suit. It
asserted that the passengers, in whose names the tickets were issued, were the real parties-in-interest
The MeTC dismissed the complaint for lack of a cause of action. Citing Rule 3, Section 3 of the Rules of
Court, 3 the MeTC declared that, as agent of the passengers who paid for the tickets, V-Gent stood as
the real party-in- interest. Nevertheless, it still dismissed the complaint because V-Gent failed to prove its
claim by a preponderance of evidence. On appeal, the RTC ruled in favor of V- Gent claiming that it had
established its claim by a preponderance of evidence. In the Court of Appeals, the ruling of the RTC was
overturned and thusly dismissed the complaint of V-Gent. The CA held that V-Gent is not a real party-in-
interest because it merely acted as an agent of the passengers who bought the tickets from Morning Star
with their own money.
Issues:
1. W/N V-Gent was the real party-in-interest, NO
2. W/N Morning Star was already estopped from challenging the status of V-Gent as the real party-in-
interest, NO
Ruling:
1. The tickets were issued in the name of the passengers and paid for with the passengers' money. Thus,
V-Gent acted as an agent of the passengers when it purchased the passengers' plane tickets.
As a general rule, in suits where an agent represents a party, the principal is the real party-in-interest; an
agent cannot file a suit in his own name on behalf of the principal.
The exception provided by Rule 3, Section 3 of the Rules of Court states that an agent may sue or be
sued solely in its own name and without joining the principal when the following elements concur: (1) the
agent acted in his own name during the transaction; (2) the agent acted for the benefit of an
undisclosed principal; and (3) the transaction did not involve the property of the principal. In the
present case, only the first element is present.
2. By granting the initial refund, Morning Star recognized V-Gent's authority to buy the tickets and collect
refunds on behalf of the passengers. However, Morning Star's recognition of V-Gent's authority to collect
a refund for the passengers is not equivalent to recognition of V-Gent's authority to initiate a suit on behalf
of the passengers. Morning Star therefore, is not estopped from questioning V-Gent's legal standing to
initiate the suit.
DISPOSITION: Petition DENIED. The Decision and Resolution of the CA are AFFIRMED.
