- Petitioner
- Calatagan Golf Club
- Respondent
- Sixto Clemente, Jr.
- Citation
- G.R. No. 165443
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Tinga, J.
- Decided
- April 16, 2009
Summary
This Supreme Court case involves the validity of a golf club's foreclosure sale of a member's share for unpaid monthly dues. Clemente, a member of Calatagan Golf Club, stopped paying monthly dues in 1991. When Calatagan attempted to notify him of the impending foreclosure sale, it continued sending notices to a closed P.O. Box address despite knowing it was closed and having his residential address on file. The share was sold at public auction in 1993. Clemente discovered the sale in 1997 and filed suit. The Supreme Court ruled that Section 69 of the Corporation Code (6-month prescription for delinquent stock sales) does not apply to membership dues of fully paid shares, applying instead the 8-year prescription under Civil Code Article 1140. The Court found Calatagan acted in bad faith by failing to provide proper notice as required by its own by-laws and Civil Code good faith provisions, affirming the Court of Appeals' award of damages and order to restore Clemente's membership. The case establishes important precedents on corporate notice requirements and the application of prescription periods to membership dues versus stock subscriptions.