Mike Elliott v. Andrew David Pope · G.R. 237474

Petitioner: Mike Elliott
Respondent: Andrew David Pope
Citation: G.R. No. 237474
Court: Supreme Court
Division: First Division
Decided: April 23, 2018

Summary

The Supreme Court denied petitioners Mike and Jody Elliott's petition challenging a Court of Appeals decision that upheld the enforceability of a non-compete clause against them. The original agreement was between Georg Bender/EGBEGEBI, Inc. and respondents, prohibiting hotel operations within 200 meters of Atlantis Resort in Dauin, Negros Oriental. When petitioners acquired property from EGBEGEBI, Inc. and operated the competing Salaya Beach House resort, respondents sued for breach of contract. The Supreme Court applied Article 1311 of the Civil Code, ruling that as assignees, petitioners stepped into EGBEGEBI's contractual obligations and were bound by the non-compete clause. The decision reinforces the principle that contractual rights and obligations are transmissible to assigns unless prohibited by law, nature, or stipulation.

Statutes applied

Civil Code, Art. 1311

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By Intellegal Editorial Board · April 23, 2018

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