MARK Arcilla Vs Ca

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G.R. No.

89804 October 23, 1992


CALVIN S. ARCILLA, petitioner, vs.
THE HONORABLE COURT OF APPEALS and EMILIO RODULFO, respondents.
Facts: Petitioner Calvin Arcilla, taking advantage of his close relationship with respondent
Emilio Rodulfo, succeeded in securing on credit from the latter, items, cash and checks.
RODULFO willingly extended the credit because of the representations of ARCILLA that he was
a successful financial consultant.
The indebtedness is shown and described in 30 “vales” signed by ARCILLA.
When RODULFO demanded payment, ARCILLA, acting in gross and evident bad faith, refused
to satisfy the claim. Hence, he filed a complaint for RECOVERY OF SUM OF MONEY.
In his Answer, ARCILLA did not deny having had business transactions with RODULFO. He
explicitly admits that the loan was in the name of his family corporation, CSAR MARINE
RESOURCES, INC.
After hearing, the Court rendered judgment against ARCILLA ordering him to pay private
respondent Emilio Rodulfo in his capacity as President of CSAR MARINE.
ARCILLA argued that he cannot be ordered to pay in his capacity as President of CSAR MARINE
since the said corporation was not impleaded in the case. The personality and liability of
ARCILLA and CSAR MARINE as a corporation are separate and distinct.
Issue: Whether or not the petitioner can raise the issue of separate corporate identity in the
pleadings for the first time in a Motion for Clarificatory Judgment?
Ruling: The records bear nothing to prop up the instant petition. The arguments adduced by the
petitioner breathe no life to it.
On the contrary, the pleadings lead Us to the inescapable conclusion that the petitioner, who is
himself a lawyer, is merely taking advantage of the use of the innocuous phrase "in his capacity
as President" found in the dispositive portion of the challenged Amended Decision — making
the same a sanctuary for a defense which he, as hereinafter discussed, had long since abandoned
or waived either deliberately or through his obliviscence. His sole purpose, of course, is to avoid
complying with the liability adjudged against him by the public respondent; such avoidance is
premiered on the so-called newly discovered evidence offered after the public respondent had
bent over backwards to grant him a new trial despite the availability of such evidence during
pendency of the proceedings before the trial court. It is to be noted that he failed to assign as
error in his Brief the denial by the said court of his motion for new trial on the basis thereof.
if We are to assume arguendo that the obligation was incurred in the name of the corporation,
the petitioner would still be personally liable therefor because for all legal intents and purposes,
he and the corporation are one and the same. Csar Marine Resources, Inc. is nothing more than
his business conduit and alter ego. The fiction of a separate juridical personality conferred upon
such corporation by law should be disregarded. Significantly, petitioner does not seriously
challenge the public respondent's application of the doctrine which permits the piercing of the
corporate veil and the disregarding of the fiction of a separate juridical personality; this is
because he knows only too well that from the very beginning, he merely used the corporation for
his personal purposes.
Petitioner's volunteered admission that he procured the pro-forma invoice from the private
respondent in connection with his loan from the KKK, using his family corporation in the
process, and his deliberate waiver of the aforementioned defense provide an insurmountable
obstacle to the viability of this petition.

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