Commercial Law Case Digests

Topics: Corporation, Jurisdiction, Legal terms Pages: 4 (1474 words) Published: March 10, 2013
Cargill vs. Intra Strata Assurance Corporation; March 15, 2010 Issues:
1.Whether petitioner is doing or transacting business in the Philippines in contemplation of the law and established jurisprudence; 2.Whether respondent is estopped from invoking the defense that petitioner has no legal capacity to sue in the Philippines; Facts: Petitioner Cargill, Inc. (petitioner) is a corporation organized and existing under the laws of the State of Delaware, United States of America. Petitioner and Northern Mindanao Corporation (NMC) executed a contract dated 16 August 1989 whereby NMC agreed to sell to petitioner 20,000 to 24,000 metric tons of molasses, to be delivered from 1 January to 30 June 1990at the price of $44 per metric ton. In compliance with the terms of the third amendment of the contract, respondent Intra Strata Assurance Corporation (respondent) issued on 10 October 1990 a performance bond in the sum of P11,287,500 to guarantee NMC’s delivery of the 10,500 tons of molasses, and a surety bond in the sum of P9,978,125 to guarantee the repayment of down payment as provided in the contract. NMC was only able to deliver 219.551 metric tons of molasses out of the agreed 10,500 metric tons. Thus, petitioner sent demand letters to respondent claiming payment under the performance and surety bonds. When respondent refused to pay, petitioner filed on 12 April 1991 a complaint for sum of money against NMC and respondent. Petitioner, NMC, and respondent entered into a compromise agreement, which the trial court approved in its Decision dated 13 December 1991. However, NMC still failed to comply with its obligation under the compromise agreement. Hence, trial proceeded and judgment was rendered in favour of plaintiff ordering defendant INTRA STRATA ASSURANCE CORPORATION to solidarily pay plaintiff the total amount of SIXTEEN MILLION NINE HUNDRED NINETY-THREE THOUSAND AND TWO HUNDRED PESOS (P16,993,200.00), Philippine Currency, with interest at the legal rate from...
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