Bsa Tower Condominium Corp. v · G.R. 224694

Petitioner: Bsa Tower Condominium Corp.
Respondent: Marietta K. Ilusorio
Citation: G.R. No. 224694
Court: Supreme Court
Division: First Division
Decided: June 16, 2021

Summary

BSA Tower Condominium Corp. received a P500,000 loan from director Marietta Ilusorio in January 2007 through its President Capistrano, who issued a promissory note. The Board ratified this transaction in February 2007. When Ilusorio demanded payment in 2008, the corporation claimed offset against her alleged P705,756.71 obligations and refused payment. The Supreme Court upheld the validity of the loan obligation through corporate ratification and estoppel principles, since the corporation used the funds to pay its bills. However, the Court modified the interest computation per the Nacar ruling and reduced attorney's fees from P150,000 to P50,000 as excessive. The case demonstrates corporate liability for ratified acts of officers and the application of estoppel when corporations benefit from unauthorized transactions.

Statutes applied

Civil Code, Art. 1159

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By Intellegal Editorial Board · June 16, 2021

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