Central Azucarera de Bais… · G.R. 87597

Petitioner: Central Azucarera de Bais
Respondent: The Honorable Court of Appeals
Citation: G.R. No. 87597
Court: Supreme Court
Division: Second Division
Ponente: Regalado, J.
Decided: August 3, 1990

Summary

Supreme Court case involving 181 sugar planters who sought increased participation in sugar production under Republic Act No. 809 (Sugar Act of 1952). The planters milled their sugarcane with Central Azucarera de Bais from 1952-1959 without written contracts and claimed entitlement to higher percentage shares when majority of planters lacked written agreements. The Court upheld lower courts' factual finding that majority of planters indeed lacked written milling contracts, making RA 809 applicable. The Court confirmed planters' right to increased participation but modified the interest rate from 12% to the legal rate of 6% per annum under Civil Code Article 2209, and deleted the attorney's fees award for lack of proper justification. The decision established important precedents regarding contract planter determination and proper distribution procedures under the Sugar Act.

Statutes applied

Civil Code, Art. 2209

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By the Intellegal Editorial Board · August 3, 1990

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