- Petitioner
- Hongkong
- Respondent
- Cecilia Diez Catalan
- Citation
- G.R. No. 159590
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Austria-Martinez, J.
- Decided
- October 18, 2004
Summary
The Supreme Court decided consolidated petitions involving foreign banking corporations' liability for damages under Article 19 of the Civil Code. Catalan sued HSBANK and HSBC TRUSTEE for refusing to honor checks issued by the deceased Thomson. The Court distinguished between the two defendants: HSBANK voluntarily submitted to jurisdiction by seeking affirmative relief through a motion for extension of time, making it liable for potential damages under the abuse of rights doctrine. However, HSBC TRUSTEE was improperly served with summons as a foreign corporation not doing business in the Philippines, without proper allegation that HSBANK was its domestic agent. The Court emphasized that abuse of rights under Article 19 requires three elements: legal right, exercise in bad faith, and intent to prejudice another. The decision clarifies jurisdictional requirements for foreign corporations and voluntary submission principles.