Tuesday, February 21, 2012

Amon Trading Corporation & Julian Marketing vs. CA [G.R. No. 158585, December 13, 2005]

Facts: Lines & Spaces, represented by Eleanor Bahia Sanchez, order from petitioner Amon Trading Corporation, and from Juliana Marketing bags of cement for Tri-Reality development and construction, but it found out that both cannot deliver all its balance and refunded the amount of undelivered bags of cement to Lines and Spaces in representation of Eleanor Sanchez, but Sanchez had already fled abroad, private respondent filed this case for sum of money against petitioners and Lines & Spaces. 

Regional Trial Court of Quezon City, found Lines & Spaces solely liable to private respondent and absolved petitioners of any liability. Tri-Realty partially appealed from the trial courts decision absolving Amon Trading Corporation and Juliana Marketing of any liability to Tri- Realty. In the presently assailed Decision, the Court of Appeals reversed the decision of the trial court and held petitioners Amon Trading Corporation and Juliana Marketing to be jointly and severally liable with Lines & Spaces for the undelivered bags of cement.

Issue: Whether or not Lines & Spaces is the Tri-realty’s agent

Held: No contract of agency between Tri-realty and Lines & Spaces, but rather a supplier for the latter’s cement needs. All the quibbling about whether Lines & Spaces acted as agent of private respondent is inane because Amon took orders from Eleanor Sanchez who, after all, was the one who paid them the manager’s checks for the purchase of cement. Sanchez represented herself to be from Lines & Spaces/Tri-Realty, purportedly a single entity. Amon didn’t knew that Lines space and tri-realty is a separate entity. 

Since line space is not agent of tri-realty, no vinculum could be said to exist between amon and tri-realty. 

Therefore Lines & Spaces solely liable to private tri-realty. 

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