Solidbank Corporation v. Mindanao Ferroalloy Corporation

Summary

This case involved Solidbank Corporation's attempt to hold individual corporate officers personally liable for a P5.16 million loan granted to the insolvent Mindanao Ferroalloy Corporation. The Supreme Court applied the fundamental principle of separate corporate personality, ruling that corporate officers Cu, Hong, and Guevara were not personally liable since they acted within their authorized representative capacities without fraud or bad faith. While affirming the officers' protection from personal liability, the Court deleted damage awards to the individual respondents, finding insufficient evidence that the bank acted with malicious intent in including them as defendants. The decision reinforces the corporate veil's protective function while establishing strict standards for damage awards based on alleged malicious prosecution.