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ALHAMBRA, RAYMOND PATRICK P.

CONSOLIDATED DAIRY PRODUCTS CO., JESUS B. BITO and FEDERICOB. GUILAS, as Acting Trust s !" CONSOLIDATED P#ILIPPINES, INC.and DAIRY E$PORT CO., INC., petitioners,

vs.T#E COURT OF APPEALS and STANDARD IN%EST&ENTCORPORATION, respondents.

G.R. N!. '(()(' August *), '++*

Unrealized Profit; Indemnification for damages shall comprehend not only the value of the losssuffered, but also that of the profits which the obligee failed to obtain.

&EDIALDEA, J.:

In 195 Conso!id"ted D"ir# Prod$%ts Co&p"n#, In%., " 'orei(n %orpor"tion in)e"tt!e, "(reed *it+ )"nti"(o )# $%o, In%. to (o into " oint vent$re to&"n$'"%t$re "nd se!! D"ri(o!d &i!- "nd ot+er d"ir# prod$%ts in t+is %o$ntr#. T+$s or("ni in( Conso!id"ted P+i!ippines, In%. Conso!id"ted )e"tt!e o*ned51/ o' t+e %"pit"! sto%- *+i!e t+e re&"inin( 09/ o' t+e %"pit"! sto%- *"so*ned # t+e )# $%o In%. Conso!id"ted )e"tt!e e2tended to Conso!id"tedP+i!ippines t+e e2%!$sive ri(+t to $se t+e tr"de n"&e D"ri(o!d in t+eP+i!ippines.

At t+e st"rt o' its oper"tion, Conso!id"ted P+i!ippines *"s i&portin( its %"nre3$ire&ents 'ro& t+e 4). Ho*ever, d$e to e%ono&i% po!i%# t+en prev"i!in(

in t+e %o$ntr#, it e("n so$r%in( !o%"!!#. In 1959, it entered in " 1 #r.%ontr"%t *it+ priv"te respondent )t"nd"rd C"n Co&p"n#.

In 19 , d"ir# e2port %o&p"n# 6De2%o7, " s$ sidi"r# o' Conso!id"ted )e"tt!e,st"rted to do $siness in t+e P+i!ippines. Its o8%e *"s "!so in Conso!id"tedP+i!s. B$i!din(.

In 19 , st"nd"rd, Conso!id"ted P+i!. And De2%o entered into " &e&or"nd$&o' "(ree&ent to e2tend t+e %"n s$pp!# %ontr"%t $nti! 19 1.

in 19:;, Conso!id"ted )e"tt!e noti

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19: Conso!id"ted )e"tt!e o$(+t t+e entire interest o' )# $%o, In%. "nd itssto%-+o!din(s Conso!id"ted P+i!ippines "nd pro%eeded to disso!veConso!id"ted P+i!ippines

Be'ore Conso!id"ted P+i!ippines %o$!d e disso!ved, +o*ever, De2%o t+e

*+o!!# o*ned s$ sidi"r# o' Conso!id"ted )e"tt!e too- over t+e &"r-etin("%tivities o' Conso!id"ted P+i!ippines "nd pro%eeded to se!! &i!- $nder t+etr"de n"&e D"ri(o!d

?"r!ier, +o*ever, in 19: Conso!id"ted p+i!. C"n%e!!ed its %ontr"%t *it+)t"nd"rd C"n. It res$!ted in t+e %ess"tion o' its oper"tions. )t"nd"rd %"n isno* %!"i&in( "("inst Conso!id"ted )e"tt!e "nd De2%o 'or t+e sep"r"tion p"#o' t+e e&p!o#ees "nd $nre"!i ed pro