ALLAN CO vs

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ALLAN CO vs. CORDERO Facts: Mortimer F. Cordero, Vice-President of Pamana Marketing Corporation (Pamana), ventured into the business of marketing inter-isand passenger vesses. !fter contacting various overseas fast ferr" manufacturers from a over the #ord, he came to meet $on" %obinson, an !ustraian nationa based in &risbane, !ustraia, #ho is the Managing 'irector of !uminium Fast Ferries !ustraia (!FF!). %obinson signed documents appointing Cordero as the e cusive distributor of !FF! catamaran and otherfast ferr" vesses in the Phiippines. !s such e cusive distributor, Cordero o ered for sae to prospective bu"ers the *+-meter !uminium Passenger catamaran kno#n as the !C!$ *+. !fter negotiations #ith Feipe andicho and Vincent $ecson, a#"ers of !an C. /o #ho is the o#ner0operator of !C/ press iner of Cebu Cit", a singe proprietorship, Cordero #as abe to cose a dea for the purchase of t#o (*) !C!$ *+. !ccording", the parties e ecuted hipbuiding Contract 1o. 23*+ for one (4) high- speed catamaran ( !C!$ *+) for the price of 5 64,78+,+4*.99. Per agreement bet#een %obinson and Cordero, the atter sha receive commissions totaing 5 6 *3,27*.99, or **.7 ; of the purchase price, from the sae of each vesse. <o#ever, Cordero ater discovered that /o #as deaing direct" #ith %obinson #hen he #as informed b" 'ennis Padua of =artsia Phiippines that /o #as canvassing for a second catamaran engine from their compan" #hich provided the ship engine for the >rst !C!$ *+. Padua tod Cordero that /o instructed him to fa the re?uested ?uotation of the second engine to the Park %o"a <ote in &risbane #here /o #as then sta"ing. Cordero tried to contact /o and andicho to con>rm the matter but the" #ere no#here to be found, #hie %obinson refused to ans#er his cas. Cordero immediate" @e# to &risbane to carif" matters #ith %obinson, on" to >nd out that /o and andicho #ere aread" there in &risbane negotiating for the sae of second !C!$ *+. 'espite repeated foo#-up cas, no e panation #as given b" %obinson, /o, andicho and $ecson #ho even made Cordero beieve there #oud be no further sae bet#een !FF! and !C/ press iner. Cordero sued them a for conspiring in vioating his e cusive distributorship in ba faith and #anton disregard of his rights. %obinson >ed a motion to dismiss grounded on ack of Aurisdiction over his person and faiure to state a cause of action, asserting that there #as no act committed in vioation of the distributorship agreement. aid motion #as denied b" the court on 'ecember *9, 4BBB. %obinson #as ike#ise decared in defaut for faiure to >e his ans#er #ithin the period granted b" the tria court. !s for /o and $ecson,

Transcript of ALLAN CO vs

ALLAN CO vs. CORDEROFacts:Mortimer F. Cordero, Vice-President of Pamana Marketing Corporation (Pamana), ventured into the business of marketing inter-island passenger vessels.After contacting various overseas fast ferry manufacturers from all over the world, he came to meet Tony Robinson, an Australian national based inBrisbane,Australia, who is the Managing Director of Aluminium Fast Ferries Australia (AFFA).Robinson signed documents appointing Cordero as the exclusive distributor of AFFA catamaran and other fast ferry vessels in thePhilippines.As such exclusive distributor, Cordero offered for sale to prospective buyers the 25-meter Aluminium Passenger catamaran known as the SEACAT 25.After negotiations with Felipe Landicho and Vincent Tecson, lawyers of Allan C. Go who is the owner/operator of ACG Express Liner of Cebu City, a single proprietorship, Cordero was able to close a deal for the purchase of two (2) SEACAT 25.Accordingly, the parties executed Shipbuilding Contract No. 7825 for one (1) high-speed catamaran (SEACAT 25) for the price of US$1,465,512.00.Per agreement between Robinson and Cordero, the latter shall receive commissions totaling US$328,742.00, or 22.43% of the purchase price, from the sale of each vessel.However, Cordero later discovered that Go was dealing directly with Robinson when he was informed by Dennis Padua of Wartsila Philippines that Go was canvassing for a second catamaran engine from their company which provided the ship engine for the first SEACAT 25.Paduatold Cordero that Go instructed him to fax the requested quotation of the second engine to the Park Royal Hotel inBrisbanewhere Go was then staying.Cordero tried to contact Go and Landicho to confirm the matter but they were nowhere to be found, while Robinson refused to answer his calls.Cordero immediately flew toBrisbaneto clarify matters with Robinson, only to find out that Go and Landicho were already there inBrisbanenegotiating for the sale of the second SEACAT 25.Despite repeated follow-up calls, no explanation was given by Robinson, Go, Landicho and Tecson who even made Cordero believe there would be no further sale between AFFA and ACG Express Liner.Cordero sued them all for conspiring in violating his exclusive distributorship in bad faith and wanton disregard of his rights.Robinson filed a motion to dismiss grounded on lack of jurisdiction over his person and failure to state a cause of action, asserting that there was no act committed in violation of the distributorship agreement.Said motion was denied by the trial court onDecember 20, 1999.Robinson was likewise declared in default for failure to file his answer within the period granted by the trial court.As for Go and Tecson, their motion to dismiss based on failure to state a cause of action was likewise denied by the trial court onFebruary 26, 1999.Subsequently, they filed their Answer denying that they have anything to do with the termination by AFFA of Corderos authority as exclusive distributor in thePhilippines.On the contrary, they averred it was Cordero who stopped communicating with Go in connection with the purchase of the first vessel from AFFA and was not doing his part in making progress status reports and airing the clients grievances to his principal, AFFA, such that Go engaged the services of Landicho to fly to Australia and attend to the documents needed for shipment of the vessel to the Philippines.Go, Robinson, Landicho and Tecson filed a motion for new trial and reconsideration, but were denied. The CA sustained the trial court in ruling that Cordero is entitled to damages for the breach of his exclusive distributorship agreement with AFFA.However, it held that Cordero is entitled only to commission for the sale of the first catamaran obtained through his efforts with the remaining unpaid sum of US$31,522.09 orP1,355,449.90 (on the basis of US$1.00=P43.00 rate) with interest at 6% per annum from the time of the filing of the complaint until the same is fully paid.Issue: w/n Robinson have acknowledge the summons by publication issued by the court?Ruling:We find no error committed by the trial court in overruling Robinsons objection over the improper resort to summons by publication upon a foreign national like him and in anaction in personam, notwithstanding that he raised it in a special appearance specifically raising the issue of lack of jurisdiction over his person.Courts acquire jurisdiction over the plaintiffs upon the filing of the complaint, while jurisdiction over the defendants in a civil case is acquired either through the service of summons upon them in the manner required by laworthrough their voluntary appearancein court and their submission to its authority. Aparty who makes a special appearancein court challenging the jurisdiction of said court based on the ground of invalid service of summons is not deemed to have submitted himself to the jurisdiction of the court. In this case, however, although the Motion to Dismiss filed by Robinson specifically stated as one (1) of the grounds the lack of personal jurisdiction, it must be noted that he had earlier filed a Motion for Time to file an appropriate responsive pleading even beyond the time provided in the summons by publication. Such motion did not state that it was a conditional appearance entered to question the regularity of the service of summons, but an appearance submitting to the jurisdiction of the court by acknowledging the summons by publication issued by the court and praying for additional time to file a responsive pleading.Consequently, Robinson having acknowledged the summons by publication and also having invoked the jurisdiction of the trial court to secure affirmative relief in his motion for additional time, he effectively submitted voluntarily to the trial courts jurisdiction.He is now estopped from asserting otherwise, even before this Court.