03 San Juan vs CA

7/24/2019 03 San Juan vs CA

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FIRST DIVISION[G.R. No. 129459. September 29, 1998]

SAN JUAN STRUTURA! AND ST""! FA#RIATORS, IN., pet$t$o%er, &'. OURT OFA(("A!S, )OTORI* SA!"S OR(ORATION, N"NITA !"" GRU"N#"RG, A!D"V"!O()"NT OR(. +% JN) R"A!T- AND D"V"!O()"NT OR(., re'po%e%t'.

D " I S I O N(ANGANI#AN, J.

)+ + /orpor+te tre+'0rer, b er'e3 +% $to0t +% +0tor$+t$o% 3rom te bo+ro3 $re/tor', &+$ 'e + p+r/e o3 +% o%e b te /orpor+t$o%6 )+ te &e$ o3/orpor+te 7/t$o% be p$er/e o% te mere ro0% t+t +mo't + o3 te '+re' o3'to/ o3 te /orpor+t$o% +re o%e b '+$ tre+'0rer +% er 0'b+%6

Te +'e

Te'e :0e't$o%' +re +%'ere $% te %e+t$&e b t$' o0rt $% re'o&$% te (et$t$o%3or Re&$e o% ert$or+r$ be3ore 0', +''+$$% te )+r/ 18, 199; De/$'$o%[1] o3 te

o0rt o3 Appe+'[2] $% A GR V No. 4511. Te RT $'m$''e bot te omp+$%t +% te o0%ter/+$m7e b te p+rt$e'. O% te oter +%, te o0rt o3 Appe+' r0e@

*"R"FOR", prem$'e' /o%'$ere, te +ppe+e e/$'$o% $' AFFIR)"D IT*)ODIFIATION orer$% e3e%+%t?+ppeee Ne%$t+ !ee Gr0e%ber to R"FUND orret0r% to p+$%t$B?+ppe+%t te o%p+me%t o3 (1==,===.== $/ 'e re/e$&e3rom p+$%t$B?+ppe+%t. Tere $' %o pro%o0%/eme%t +' to /o't'.[4]

Te pet$t$o% +'o /+e%e' te J0%e 1=, 199; A Re'o0t$o% e%$%re/o%'$er+t$o%.[5]

Te F+/t'

Te 3+/t' +' 3o0% b te o0rt o3 Appe+' +re +' 3oo'@

(+$%t$B?+ppe+%t S+% J0+% Str0/t0r+ +% Stee F+br$/+tor', I%/.' +me%e/omp+$%t +ee t+t o% 14 Febr0+r 1989, p+$%t$B?+ppe+%t e%tere $%to +%+reeme%t $t e3e%+%t?+ppeee )otor$/ S+e' orpor+t$o% 3or te tr+%'3er to $to3 + p+r/e o3 +% $e%t$7e +' !ot >=, #o/ 1 o3 te A/ropo$' Gree%' S0b$&$'$o%o/+te $% te D$'tr$/t o3 )0rp, C0eo% $t, )etro )+%$+, /o%t+$%$% +% +re+ o3Fo0r *0%re Fo0rtee% 414E ':0+re meter', /o&ere b TT No. >


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orpor+t$o% t+t p+$%t$B?+ppe+%t +% e3e%+%t?+ppeee )otor$/ S+e'orpor+t$o% ere '0ppo'e to meet $% te o/e o3 p+$%t$B?+ppe+%t b0t e3e%+%t?+ppeee' tre+'0rer, Ne%$t+ !ee Gr0e%ber, $ %ot +ppe+r t+t e3e%+%t?+ppeee)otor$/ S+e' orpor+t$o% e'p$te repe+te em+%' +% $% 0tter $'re+r o3 $t'/omm$tme%t' + re30'e to eHe/0te te Tr+%'3er o3 R$t'Dee o3 A''$%me%t$/ $' %e/e''+r to tr+%'3er te /ert$7/+te o3 t$te t+t e3e%+%t A!

De&eopme%t orp. $' $mpe+e +' + %e/e''+r p+rt '$%/e Tr+%'3er ert$7/+te o3T$te No. > o3 te +me%e/omp+$%t t+t )r'. Gr0e%ber' '$%+t0re o% te +reeme%t re3@ p+r. > o3 Ame%eomp+$%tE $' $%+e:0+te to b$% )otor$/. Te oter '$%+t0re, t+t o3 )r. Re%+oGr0e%ber, (re'$e%t +% +$rm+% o3 )otor$/, $' re:0$re t+t p+$%t$B %e t$'3rom te &er be$%%$% +' $t +' pre'e%te + /op o3 te Tr+%'3er o3 R$t' A%%eH# o3 +me%e /omp+$%tE +t te t$me te Areeme%t A%%eH # o3 +me%e/omp+$%tE +' '$%e t+t p+$%t$B?+ppe+%t $t'e3 r+3te te Areeme%t +%$%'$'te t+t )r'. Gr0e%ber +//ept te (1==,===.== +' e+r%e't mo%e t+tr+%t$%, $to0t +m$tt$%, te e%3or/e+b$$t o3 te +reeme%t, p+$%t$B?+ppe+%t%o%etee'' 3+$e to p+ $% e+ te%er $t$% te 't$p0+te per$o 0p to )+r/ 2,1989E t+t $t +' te 0%er't+%$% betee% )r'. Gr0e%ber +% p+$%t$B?+ppe+%tt+t te Tr+%'3er o3 R$t'Dee o3 A''$%me%t $ be '$%e o% 0po% re/e$pt o3/+' p+me%t t0' te +ree t+t $3 te p+me%t be $% /e/, te $ meet +t +b+% e'$%+te b p+$%t$B?+ppe+%t ere te $ e%/+' te /e/ +% '$%


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te Tr+%'3er o3 R$t'Dee. *oe&er, p+$%t$B?+ppe+%t $%3orme )r'. Gr0e%ber o3te +ee +&+$+b$$t o3 te /e/, b po%e, o% +3ter b+%$% o0r'.

O% te b+'$' o3 te e&$e%/e, te /o0rt + :0o re%ere te K0me%t +ppe+e3rom[,] $'m$''$% p+$%t$B?+ppe+%t' /omp+$%t, r0$% t+t@

LTe $''0e to be re'o&e $'@ eter p+$%t$B + te r$t to /ompe e3e%+%t' toeHe/0te + ee o3 +b'o0te '+e $% +//or+%/e $t te +reeme%t o3 Febr0+r 14,1989 +% $3 'o, eter p+$%t$B $' e%t$te to +m+e'.

A' to te 7r't :0e't$o%, tere $' %o e&$e%/e to 'o t+t e3e%+%t Ne%$t+ !eeGr0e%ber +' $%ee +0tor$e b e3e%+%t /orpor+t$o%, )otor$/ S+e', to$'po'e o3 t+t propert /o&ere b T..T. No. >E $/ m+e' $m %oee+be o% /orpor+t$o% m+tter'.

Re+r$% te :0e't$o% o3 +m+e', te o0rt $e$'e, oe' %ot 7% '0b't+%t$+e&$e%/e to o e3e%+%t Ne%$t+ !ee Gr0e%ber $+be /o%'$er$% t+t 'e $ %ot$% +%+ m$'repre'e%t er'e3 to be +0tor$e b te /orpor+t$o% to 'e tepropert to p+$%t$B t'% +te September 2;, 1991, p. 8E.

I% te $t o3 te 3oreo$%, te o0rt ereb re%er' K0me%t DIS)ISSING te/omp+$%t +t $%'t+%/e 3or +/ o3 mer$t.

De3e%+%t' /o0%ter/+$m $' +'o DIS)ISS"D 3or +/ o3 b+'$'. De/$'$o%, pp. ;?8Roo, pp. >4?>5E

For /+r$t, te Areeme%t +te Febr0+r 14, 1989 $' repro0/e ere0%er@

AGR"")"NT

MNO A!! )"N #- T*"S" (R"S"NTS@

T$' Areeme%t, m+e +% e%tere $%to b +% betee%@


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)OTORI* SA!"S OR(ORATION, + /orpor+t$o% 0 or+%$e +% eH$'t$% 0%er+% b &$rt0e o3 ($$pp$%e !+', $t pr$%/$p+ o/e +re'' +t 551= So0t S0per*$?+ /or. #+er+m+ St., ($o e ($+r, )++t$, )etro )+%$+, repre'e%te ere$% b$t' Tre+'0rer, N"NITA !"" GRU"N#"RG, ere$%+3ter re3erre to +' te TRANSF"ROR

? +% ??

SAN JUAN STRUTURA! ST""! FA#RIATORS, + /orpor+t$o% 0 or+%$e +%eH$'t$% 0%er +% b &$rt0e o3 te +' o3 te ($$pp$%e', $t pr$%/$p+ o/e+re'' +t S0m0o% *$+, #+rr$o )+mb0%+%, A%t$poo, R$+, repre'e%teere$% b $t' (re'$e%t, ANDR"S T. O, ere$%+3ter re3erre to +' te TRANSF"R"".

ITN"SS"T*, T+t@

*"R"AS, te TRANSF"ROR $' te o%er o3 + p+r/e o3 +% $e%t$7e +' !ot >=#o/ 1 o3 te ARO(O!IS GR""NS SU#DIVISION o/+te +t te D$'tr$/t o3 )0rp,C0eo% $t, )etro )+%$+, /o%t+$%$% +% +re+ o3 FOUR *UNDR"D FOURT""N 414ESCUAR" )"T"RS, /o&ere b + TRANSF"R OF RIG*TS betee% JN) Re+t De&.

orp. +' te Tr+%'3eror +% )otor$/ S+e' orp. +' te Tr+%'3eree

NO, T*"R"FOR", 3or +% $% /o%'$er+t$o% o3 te 3oreo$% prem$'e', te p+rt$e'+&e +ree +' 3oo'@

1. T+t te p0r/+'e pr$/e '+ be +t FIV" T*OUSAND TO *UNDR"D ("SOS(5,2==.==E per ':0+re meter '0bKe/t to te 3oo$% term'@

+. "+r%e't mo%e +mo0%t$% to ON" *UNDR"D T*OUSAND ("SOS (1==,===.==E,$ be p+$ 0po% te eHe/0t$o% o3 t$' +reeme%t +% '+ 3orm p+rt o3 te tot+p0r/+'e pr$/e

b. #++%/e '+ be p++be o% or be3ore )+r/ 2, 1989

2. T+t te mo%t +mort$+t$o% 3or te mo%t o3 Febr0+r 1989 '+ be 3or te+//o0%t o3 te Tr+%'3eror +% t+t te mo%t +mort$+t$o% 't+rt$% )+r/ 21,1989 '+ be 3or te +//o0%t o3 te Tr+%'3eree

Te tr+%'3eror +rr+%t' t+t e ['$/] $' te +30 o%er o3 te +bo&e?e'/r$bepropert +% t+t tere [+re] %o eH$'t$% $e%' +%or e%/0mbr+%/e' o3 +t'oe&er%+t0re

I% /+'e o3 3+$0re b te Tr+%'3eree to p+ te b++%/e o% te +te 'pe/$7e o% 1.bE, te e+r%e't mo%e '+ be 3or3e$te $% 3+&or o3 te Tr+%'3eror.

T+t 0po% 30 p+me%t o3 te b++%/e, te TRANSF"ROR +ree' to eHe/0te +TRANSF"R OF RIG*TSD""D OF ASSIGN)"NT $% 3+&or o3 te TRANSF"R"".

IN ITN"SS *"R"OF, te p+rt$e' +&e ere0%to 'et te$r +%' t$' 14t + o3Febr0+r, 1989 +t Gree%$', S+% J0+%, )etro )+%$+, ($$pp$%e'.

)OTORI* SA!"S OR(ORATION SAN STRUTURA!


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TRANSF"ROR ST""! FA#RIATORSTRANSF"R""

[SGD.] [SGD.]#@ N"NITA !"" GRU"N#"RG #@ ANDR"S T. O

Tre+'0rer (re'$e%t

S$%e $% te pre'e%/e o3@

[SGD.] [SGD.] [. I' te +ee +ter+t$o% o3 Gr0e%ber' te't$mo% +' re/ore $% te tr+%'/r$pt o3'te%or+p$/ %ote' m+ter$+ to te $'po'$t$o% o3 t$' /+'e6


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4. Are re'po%e%t' $+be 3or +m+e' +% +ttor%e' 3ee'6

Te o0rt' R0$%

Te pet$t$o% $' e&o$ o3 mer$t.

F$r't I''0e@ V+$$t o3 Areeme%t

(et$t$o%er S+% J0+% Str0/t0r+ +% Stee F+br$/+tor', I%/. +ee' t+t o% Febr0+r 14,1989, $t e%tere tro0 $t' pre'$e%t, A%re' o, $%to te $'p0te Areeme%t $tRe'po%e%t )otor$/ S+e' orpor+t$o%, $/ +' $% t0r% +ee repre'e%te b$t' tre+'0rer, Ne%$t+ !ee Gr0e%ber. (et$t$o%er $%'$'t' t+t []e% Gr0e%ber +% o+He te$r '$%+t0re' o% te /o%tr+/t te bot /o%'e%te to be bo0% b teterm' tereo3. "ro, pet$t$o%er /o%te%' t+t te /o%tr+/t $' b$%$% o% te to/orpor+t$o%'. e o %ot +ree.

Tr0e, Gr0e%ber +% o '$%e o% Febr0+r 14, 1989, te Areeme%t +//or$% to

$/ + ot o%e b )otor$/ S+e' orpor+t$o% +' p0rporte 'o. S0//o%tr+/t, oe&er, /+%%ot b$% )otor$/, be/+0'e $t %e&er +0tor$e or r+t$7e'0/ '+e.

A /orpor+t$o% $' + K0r$$/+ per'o% 'ep+r+te +% $'t$%/t 3rom $t' 'to/oer' ormember'. A//or$%, te propert o3 te /orpor+t$o% $' %ot te propert o3 $t''to/oer' or member' +% m+ %ot be 'o b te 'to/oer' or member'$to0t eHpre'' +0tor$+t$o% 3rom te /orpor+t$o%' bo+r o3 $re/tor'.[1=] Se/t$o%2> o3 #(


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F0rtermore, te o0rt +' +'o re/o%$e te r0e t+t per'o%' e+$% $t +%+''0me +e%t, eter te +''0me +e%/ be + e%er+ or 'pe/$+ o%e, +rebo0% +t te$r per$, $3 te o0 o te pr$%/$p+ $+be, to +'/ert+$% %ot o% te3+/t o3 +e%/ b0t +'o te %+t0re +% eHte%t o3 +0tor$t, +% $% /+'e e$ter $'/o%tro&erte, te b0re% o3 proo3 $' 0po% tem to e't+b$' $t *+rr Meeer &.Ror$0e, 4 ($. 19E.[1>] U%e'' 0 +0tor$e, + tre+'0rer, o'e poer' +re

$m$te, /+%%ot b$% te /orpor+t$o% $% + '+e o3 $t' +''et'.[14]

I% te /+'e +t b+r, Re'po%e%t )otor$/ /+teor$/+ e%$e' t+t $t e&er +0tor$eNe%$t+ Gr0e%ber, $t' tre+'0rer, to 'e te '0bKe/t p+r/e o3 +%.[15] o%'e:0e%t,pet$t$o%er + te b0re% o3 pro&$% t+t Ne%$t+ Gr0e%ber +' $% 3+/t +0tor$eto repre'e%t +% b$% )otor$/ $% te tr+%'+/t$o%. (et$t$o%er 3+$e to $'/+re t$'b0re%. It' oBer o3 e&$e%/e be3ore te tr$+ /o0rt /o%t+$%e %o proo3 o3 '0/+0tor$t.[1


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A' + e%er+ r0e, te +/t' o3 /orpor+te o/er' $t$% te '/ope o3 te$r +0tor$t+re b$%$% o% te /orpor+t$o%. #0t e% te'e o/er' eH/ee te$r +0tor$t, te$r+/t$o%' /+%%ot b$% te /orpor+t$o%, 0%e'' $t +' r+t$7e '0/ +/t' or $' e'toppe3rom $'/+$m$% tem.[2=]

I% t$' /+'e, tere $' + /e+r +b'e%/e o3 proo3 t+t )otor$/ e&er +0tor$e Ne%$t+

Gr0e%ber, or m+e $t +ppe+r to +% t$r per'o% t+t 'e + te +0tor$t, to 'e$t' +% or to re/e$&e te e+r%e't mo%e. Ne$ter +' tere +% proo3 t+t )otor$/r+t$7e, eHpre'' or $mp$e, te /o%tr+/t. (et$t$o%er re't' $t' +r0me%t o% tere/e$pt, $/, oe&er, oe' %ot pro&e te 3+/t o3 r+t$7/+t$o%. Te o/0me%t $' ++%?r$tte% o%e, %ot + /orpor+te re/e$pt, +% $t be+r' o% Ne%$t+ Gr0e%ber''$%+t0re. ert+$%, t$' o/0me%t +o%e oe' %ot pro&e t+t er +/t' ere+0tor$e or r+t$7e b )otor$/.

Art$/e 1>18 o3 te $&$ oe $'t' te re:0$'$te' o3 + &+$ +% per3e/te /o%tr+/t@1E /o%'e%t o3 te /o%tr+/t$% p+rt$e' 2E obKe/t /ert+$% $/ $' te '0bKe/t m+ttero3 te /o%tr+/t >E /+0'e o3 te ob$+t$o% $/ $' e't+b$'e. A' 3o0% b te tr$+/o0rt[21] +% +rme b te o0rt o3 Appe+',[22] tere $' %o e&$e%/e t+t

Gr0e%ber +' +0tor$e to e%ter $%to te /o%tr+/t o3 '+e, or t+t te '+$/o%tr+/t +' r+t$7e b )otor$/. T$' 3+/t0+ 7%$% o3 te to /o0rt' $' b$%$% o%t$' o0rt.[2>] A' te /o%'e%t o3 te 'eer +' %ot obt+$%e, %o /o%tr+/t to b$% teob$or +' per3e/te. Tere3ore, tere /+% be %o &+$ /o%tr+/t o3 '+e betee%pet$t$o%er +% )otor$/.

#e/+0'e )otor$/ + %e&er $&e% + r$tte% +0tor$+t$o% to Re'po%e%t Gr0e%berto 'e $t' p+r/e o3 +%, e o t+t te Febr0+r 14, 1989 Areeme%t e%tere $%tob te +tter $t pet$t$o%er $' &o$ 0%er Art$/e 18;4 o3 te $&$ oe. #e$%$%eH$'te%t +% &o$ 3rom te be$%%$%, '+$ /o%tr+/t /+%%ot be r+t$7e.[24]

Se/o% I''0e@($er/$% te orpor+te Ve$ Not J0't$7e

(et$t$o%er +'o +r0e' t+t te &e$ o3 /orpor+te 7/t$o% o3 )otor$/ 'o0 bep$er/e, be/+0'e te +tter $' + /o'e /orpor+t$o%. S$%/e Spo0'e' Re%+o !.Gr0e%ber +% Ne%$t+ R. Gr0e%ber o%e + or +mo't + or 99.8


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Se/o%, e&e% $3 te +bo&e?me%t$o%e +r0me%t ere to be +re''e +t t$' t$me,te o0rt 't$ 7%' %o re+'o% to 0po $t. Tr0e, o%e o3 te +&+%t+e' o3 +/orpor+te 3orm o3 b0'$%e'' or+%$+t$o% $' te $m$t+t$o% o3 +% $%&e'tor' $+b$$t tote +mo0%t o3 te $%&e'tme%t.[>=] T$' 3e+t0re Po' 3rom te e+ teor t+t +/orpor+te e%t$t $' 'ep+r+te +% $'t$%/t 3rom $t' 'to/oer'. *oe&er, te

't+t0tor$ r+%te pr$&$ee o3 + /orpor+te &e$ m+ be 0'e o% 3or e$t$m+tep0rpo'e'.[>1] O% e:0$t+be /o%'$er+t$o%', te &e$ /+% be $'re+re e% $t $'0t$$e +' + '$e to /omm$t 3r+0, $e+$t or $%e:0$t e3e+t p0b$/ /o%&e%$e%/e/o%30'e e$t$m+te $''0e' or 'er&e +' + mere +ter eo or b0'$%e'' /o%0$t o3 +per'o% or +% $%'tr0me%t+$t, +e%/ or +K0%/t o3 +%oter /orpor+t$o%.[>2]

T0', te o0rt +' /o%'$'te%t r0e t+t []e% te 7/t$o% $' 0'e +' + me+%' o3perpetr+t$% + 3r+0 or +% $e+ +/t or +' + &e$/e 3or te e&+'$o% o3 +% eH$'t$%ob$+t$o%, te /$r/0m&e%t$o% o3 't+t0te', te +/$e&eme%t or per3e/t$o% o3 +mo%opo or e%er+ te perpetr+t$o% o3 %+&er or /r$me, te &e$ $t $/ te+ /o&er' +% $'o+te' te /orpor+t$o% 3rom te member' or 'to/oer' o/ompo'e $t $ be $3te to +o 3or $t' /o%'$er+t$o% mere +' +% +re+t$o% o3

$%$&$0+'.[>>]

e 'tre'' t+t te /orpor+te 7/t$o% 'o0 be 'et +'$e e% $t be/ome' + '$e++$%'t $+b$$t 3or 3r+0, $e+$t or $%e:0$t /omm$tte o% t$r per'o%'. Te:0e't$o% o3 p$er/$% te &e$ o3 /orpor+te 7/t$o% $' e''e%t$+, te%, + m+tter o3proo3. I% te pre'e%t /+'e, oe&er, te o0rt 7%' %o re+'o% to p$er/e te/orpor+te &e$ o3 Re'po%e%t )otor$/. (et$t$o%er 0tter 3+$e to e't+b$' t+t '+$/orpor+t$o% +' 3orme, or t+t $t $' oper+te, 3or te p0rpo'e o3 '$e$% +%+ee 3r+00e%t or $e+ +/t$&$t$e' o3 $t' o/er' or 'to/oer' or t+t te '+$&e$ +' 0'e to /o%/e+ 3r+0, $e+$t or $%e:0$t +t te eHpe%'e o3 t$r per'o%',$e pet$t$o%er.

(et$t$o%er /+$m' t+t )otor$/ $' + /o'e /orpor+t$o%. e r0e t+t $t $' %ot. Se/t$o%9< o3 te orpor+t$o% oe e7%e' + /o'e /orpor+t$o% +' 3oo'@

S". 9


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/o'e /orpor+t$o%.[>5] )otor$/ oe' %ot be/ome o%e e$ter, K0't be/+0'e Spo0'e'Re%+o +% Ne%$t+ Gr0e%ber o%e 99.8;] ere$% teo0rt r0e t+t HHH pet$t$o%er /orpor+t$o% $' /+''$7e +' + /o'e /orpor+t$o% +%,/o%'e:0e%t, + bo+r re'o0t$o% +0tor$$% te '+e or mort+e o3 te '0bKe/tpropert $' %ot %e/e''+r to b$% te /orpor+t$o% 3or te +/t$o% o3 $t' pre'$e%t.[>8]#0t te 3+/t0+ m$$e0 $% D0+ $' %ot o% + 3o0r' $t te pre'e%t /+'e. I% D0+, te'+e o3 re+ propert +' /o%tr+/te b te pre'$e%t o3 + /o'e /orpor+t$o% $t te%oee +% +/:0$e'/e%/e o3 $t' bo+r o3 $re/tor'.[>9] I% te pre'e%t /+'e,)otor$/ $' %ot + /o'e /orpor+t$o%, +' pre&$o0' $'/0''e, +% te +reeme%t +'e%tere $%to b te /orpor+te tre+'0rer $to0t te %oee o3 te bo+r o3$re/tor'.

Te o0rt $' %ot 0%++re t+t tere +re eH/ept$o%+ /+'e' ere +% +/t$o% b +$re/tor, o '$% $' te /o%tro$% 'to/oer, m+ be /o%'$ere +' + b$%$%/orpor+te +/t +% + bo+r +/t$o% +' %ot$% more t+% + mere 3orm+$t.[4=] Tepre'e%t /+'e, oe&er, $' %ot o%e o3 tem.

A' 't+te b pet$t$o%er, Spo0'e' Re%+o +% Ne%$t+ Gr0e%ber o% +mo't99.8


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C D$ o0 e&er repre'e%t to )r. o t+t o0 ere +0tor$e b te /orpor+t$o% to'e te propert6

A -e', '$r.[45]

(et$t$o%er /+$m' t+t te +%'er -e' +' /ro''e o0t, +%, $% $t' p+/e +' r$tte% +

No $t +% $%$t$+ '/r$bbe +bo&e $t.[4


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F$%+, pet$t$o%er pr+' 3or +m+e' +% +ttor%e' 3ee', +e$% t+t [$]% +% 0tter$'p+ o3 m+$/e +% b+ 3+$t, [r]e'po%e%t' +ttempte +% '0//eee $%$mpre''$% o% te tr$+ /o0rt +% [te] o0rt o3 Appe+' t+t Gr0e%ber $ %otrepre'e%t er'e3 +' +0tor$e b Re'po%e%t )otor$/ e'p$te te re/e$pt $''0eb te 3ormer 'pe/$7/+ $%$/+t$% t+t 'e +' '$%$% o% be+3 o3 )otor$/S+e' orpor+t$o%. Re'po%e%t )otor$/ $e$'e +/te $% b+ 3+$t e% $t /+$me

$t $ %ot +0tor$e Re'po%e%t Gr0e%ber +% t+t te /o%tr+/t [+'] %ot b$%$%,[$%'o3+r] +' $t [+'] /o%/er%e, e'p$te re/e$pt +% e%Kome%t o3 te pro/ee' o3Gr0e%ber' +/t.[48] A''0m$% t+t Re'po%e%t )otor$/ +' %ot + p+rt to te+ee 3r+0, pet$t$o%er m+$%t+$%' t+t Re'po%e%t Gr0e%ber 'o0 be e $+bebe/+0'e 'e +/te 3r+00e%t +% $% b+ 3+$t [$%] repre'e%t$% er'e3 +' 0+0tor$e b [R]e'po%e%t []orpor+t$o%.[49]

A' +re+ 't+te, e '0't+$% te 7%$%' o3 bot te tr$+ +% te +ppe+te /o0rt't+t te 3oreo$% +e+t$o%' +/ 3+/t0+ b+'e'. *e%/e, +% ++r o3 +m+e' or+ttor%e' 3ee' /+%%ot be K0't$7e. Te +mo0%t p+$ +' e+r%e't mo%e +' %otpro&e% to +&e reo0%e to te be%e7t o3 Re'po%e%t )otor$/. (et$t$o%er /+$m't+t '+$ +mo0%t +' epo'$te to te +//o0%t o3 Re'po%e%t )otor$/, be/+0'e $t

+' epo'$te $t te +//o0%t o3 Are% ommer/$+ /o )otor$/ S+e' orpor+t$o%.[5=] Re'po%e%t Gr0e%ber, oe&er, $'p0te' te +e+t$o%' o3 pet$t$o%er. Sete't$7e +' 3oo'@

C -o0 &o0%t+r$ +//epte te (1==,===.==, +' + m+tter o3 3+/t, t+t +' e%/+'e,te /e/ +' e%/+'e.

A -e', '$r, te /e/ +' p+$ $% m %+me +% I epo'$t[e] $t . . .

C I% o0r +//o0%t6

A -e', '$r. [51]

I% +% e&e%t, Gr0e%ber oBere to ret0r% te +mo0%t to pet$t$o%er HHH '$%/e te'+e $ %ot p0' tro0.[52]

)oreo&er, e %ote t+t A%re' o $' %ot + %eopte $% te or o3 /orpor+teb0'$%e''. *e +' bee% te pre'$e%t o3 (et$t$o%er orpor+t$o% 3or more t+% te%e+r' +% +' +'o 'er&e +' /$e3 eHe/0t$&e o3 to oter /orpor+te e%t$t$e'.[5>] o/+%%ot 3e$% $%or+%/e o3 te '/ope o3 te +0tor$t o3 + /orpor+te tre+'0rer '0/+' Gr0e%ber. Ne$ter /+% e be ob$&$o0' to $' 0t to +'/ert+$% te '/ope o3Gr0e%ber' +0tor$+t$o% to e%ter $%to + /o%tr+/t to 'e + p+r/e o3 +% beo%$%to )otor$/.

I%ee, pet$t$o%er' /+$m o3 3r+0 +% b+ 3+$t $' 0%'0b't+%t$+te +% 3+$' toper'0+e te o0rt. I%0b$t+b, pet$t$o%er +ppe+r' to be te &$/t$m o3 $t' o%o/er' %e$e%/e $% e%ter$% $%to + /o%tr+/t $t +% p+$% +% 0%+0tor$eo/er o3 +%oter /orpor+t$o%.

A' /orre/t r0e b te o0rt o3 Appe+', oe&er, Ne%$t+ Gr0e%ber 'o0 beorere to ret0r% to pet$t$o%er te +mo0%t 'e re/e$&e +' e+r%e't mo%e, +' %oo%e '+ e%r$/ $m'e3 +t te eHpe%'e o3 +%oter,[54] + pr$%/$pe embo$e $%


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Art$/e 2154 o3 te $&$ oe.[55] Ato0 tere +' %o b$%$% re+t$o% betee%tem, pet$t$o%er p+$ Gr0e%ber o% te m$'t+e% be$e3 t+t 'e + te +0tor$tto 'e te propert o3 )otor$/.[5

03 San Juan vs CA

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