Cebu Country Club v. Ricardo F · G.R. 160273

Petitioner: Cebu Country Club
Respondent: Ricardo F. Elizagaque
Citation: G.R. No. 160273
Court: Supreme Court
Division: First Division
Ponente: Sandoval-Gutierrez, J.
Decided: January 18, 2008

Summary

This case involves Cebu Country Club, Inc. and its directors' liability for damages due to bad faith disapproval of Ricardo Elizagaque's proprietary membership application. Elizagaque, designated by San Miguel Corporation as special non-proprietary member, applied for proprietary membership in 1996 and purchased a share for P3 million. The Board disapproved his application in July 1997 using a secret ballot system requiring unanimous approval, but failed to inform him of this requirement as the amended by-law was not printed on the application form. Despite multiple reconsideration letters, CCCI remained silent. The Supreme Court found petitioners violated Civil Code Articles 19 and 21 on human relations, acting arbitrarily and in bad faith. The Court awarded reduced damages of P50,000 moral damages, P25,000 exemplary damages, and P75,000 total for attorney's fees and litigation expenses, establishing joint and several liability under Corporation Code Section 31.

Statutes applied

Civil Code, Art. 19

Related cases

Other Philippine cases on the same provisions and issues.

Coca-Cola Bottlers Philippines v. Spouses Jose R. Bernardo G.R. No. 190667
Joyce v. Ardiente G.R. No. 161921
Land Bank of the Philippines v. Alfredo Ong G.R. No. 190755
Allan C. Go v. Mortimer F. Cordero G.R. No. 164703
Barons Marketing Corp. v. Court of Appeals G.R. No. 126486
Lorena Salvador v. Rafael H. Hizon G.R. No. 241310
Ernesto Oppen v. Darwin G. Koh G.R. No. 249330
Thelma C. Muller v. Philippine National Bank G.R. No. 215922

By the Intellegal Editorial Board · January 18, 2008

Search Philippine case law on Intellegal →

AI-assisted case analysis — for research only. Verify against the official decision. A research aid, not legal advice; using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer. Verify every holding and citation against the official decision (Supreme Court E-Library / Official Gazette) before relying on it.