Pacific Rehouse Corporation vs. Court of Appeals and Export and Industry Bank Summary

PACIFIC REHOUSE CORPORATION, PETITIONER, VS. COURT OF APPEALS AND EXPORT AND INDUSTRY BANK, INC., RESPONDENTS. PACIFIC REHOUSE CORPORATION, PACIFIC CONCORDE CORPORATION, MIZPAH HOLDINGS, INC., FORUM HOLDINGS CORPORATION AND EAST ASIA OIL COMPANY, INC., PETITIONERS, VS. EXPORT AND INDUSTRY BANK, INC., RESPONDENT.

G.R. No. 199687 and G.R. No. 201537 | 2014-03-24

Piercing the veil of corporate fiction, when corporation a conduit or alter-ego
Corporate law; doctrine of piercing the veil of corporate fiction was applied notwithstanding that the affected corporation was not brought to the court as a party
Corporation law; a corporation not impleaded in a suit cannot be subject to the court’s process of piercing the veil of its corporate fiction
Alter-ego principle or doctrine

FIRST DIVISION

DECISION

REYES, J.:

On the scales of justice precariously lie the right of a prevailing party to his victor’s cup, no more, no less; and the right of a separate entity from being dragged by the ball and chain of the vanquished party.

The facts of this case as garnered from the Decision^[1] dated April 26, 2012 of the Court of Appeals (CA) in CA-G.R. SP No. 120979 are as follows:

We trace the roots of this case to a complaint instituted with the Makati City Regional Trial Court (RTC), Branch 66, against EIB Securities Inc. (E-Securities) for unauthorized sale of 32,180,000 DMCI shares of private...