AURELIO K. LITONJUA, JR., Petitioner, - versus ' EDUARDO K. LITONJUA, SR., ROBERT T.

YANG, ANGLO PILS. !ARITI!E, IN"., "INEPLE#, IN"., DD! GAR!ENTS, IN"., EDDIE K.
LITONJUA SIPPING AGEN"Y, IN"., EDDIE K. LITONJUA SIPPING "O., IN"., LITONJUA
SE"URITIES, IN". $%or&er'( E. K. Liton)u* Se+,, LUNETA TEATER, IN"., E - L REALTY,
$%or&er'( E - L INTL SIPPING "ORP.,, .NP "O., IN"., O!E ENTERPRISES, IN".,
BEAU!ONT DE/. REALTY "O., IN"., GLOED LAND "ORP., E0UITY TRADING "O., IN"., 1D
"ORP., 'L DE/. "ORP, L"! TEATRI"AL ENTERPRISES, IN"., LITONJUA SIPPING "O.
IN"., !A"OIL IN"., ODEON REALTY "ORP., SARATOGA REALTY, IN"., A"T TEATER IN".
$%or&er'( Gener*' T2e*tri+*' - .i'& E3+2*n4e, IN".,, A/ENUE REALTY, IN"., A/ENUE
TEATER, IN". *n5 L/. PILIPPINES, IN"., $.or&er'( /. PILIPPINES,, Res6on5ents.
G.R. NOS. 7889::-1;;
Present< PANGANIBAN, J., "2*ir&*n SANDO/AL- GUTIERRE=, "ORONA,
"ARPIO !ORALES *n5 GAR"IA, JJ.
Pro&u'4*te5< De+e&>er 71, 9;;?
3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3
D E " I S I O N GAR"IA, J.<

In t2is 6etition %or revie@ un5er Ru'e A? o% t2e Ru'es o% "ourt, 6etitioner Aure'io K. Liton)u*, Jr.
seeBs to nu''i%( *n5 set *si5e t2e De+ision o% t2e "ourt o% A66e*'s $"A, 5*te5 !*r+2 17, 9;;AC7D
in +onso'i5*te5 +*ses ".A. G.R. S6. No. E8:FE *n5 ".A. G.R. SP. No EFEEA *n5 its Reso'ution
5*te5 De+e&>er ;E, 9;;A,C9D 5en(in4 6etitioner's &otion %or re+onsi5er*tion.

T2e re+ourse is +*st *4*inst t2e %o''o@in4 %*+tu*' >*+B5ro6<

Petitioner Aure'io K. Liton)u*, Jr. $Aure'io, *n5 2erein res6on5ent E5u*r5o K. Liton)u*, Sr.
$E5u*r5o, *re >rot2ers. T2e 'e4*' 5is6ute >et@een t2e& st*rte5 @2en, on De+e&>er A, 9;;9, in
t2e Re4ion*' Tri*' "ourt $RT", *t P*si4 "it(, Aure'io %i'e5 * suit *4*inst 2is >rot2er E5u*r5o *n5
2erein res6on5ent Ro>ert T. Y*n4 $Y*n4, *n5 sever*' +or6or*tions %or s6e+i%i+ 6er%or&*n+e *n5
*++ountin4. In 2is +o&6'*int,C1D 5o+Bete5 *s "ivi' "*se No. 8:91? *n5 eventu*''( r*%%'e5 to
Br*n+2 8F o% t2e +ourt,CAD Aure'io *''e4e5 t2*t, sin+e June 7:E1, 2e *n5 E5u*r5o *re into * )oint
ventureG6*rtners2i6 *rr*n4e&ent in t2e O5eon T2e*ter >usiness @2i+2 2*5 e36*n5e5 t2ru
invest&ent in "ine6'e3, In+., L"! T2e*tri+*' Enter6rises, O5eon Re*'t( "or6or*tion $o6er*tor o%
O5eon I *n5 II t2e*tres,, Avenue Re*'t(, In+., o@ner o% '*n5s *n5 >ui'5in4s, *&on4 ot2er
+or6or*tions. Y*n4 is 5es+ri>e5 in t2e +o&6'*int *s 6etitioner's *n5 E5u*r5o's 6*rtner in t2eir
O5eon T2e*ter invest&ent.C?D T2e s*&e +o&6'*int *'so +ont*ine5 t2e %o''o@in4 &*teri*'
*ver&ents<
1.;7 On or *>out 99 June 7:E1, CAure'ioD *n5 E5u*r5o entere5 into * )oint ventureG6*rtners2i6
%or t2e +ontinu*tion o% t2eir %*&i'( >usiness *n5 +o&&on %*&i'( %un5s '.

1.;7.7 T2is )oint ventureGC6*rtners2i6D *4ree&ent @*s +ont*ine5 in * &e&or*n5u& *55resse5
>( E5u*r5o to 2is si>'in4s, 6*rents *n5 ot2er re'*tives. "o6( o% t2is &e&or*n5u& is *tt*+2e5
2ereto *n5 &*5e *n inte4r*' 6*rt *s Anne3 'A *n5 t2e 6ortion re%errin4 to CAure'ioD su>&*rBe5 *s
Anne3 'A-7.

1.;9 It @*s t2en *4ree5 u6on >et@een CAure'ioD *n5 E5u*r5o t2*t in +onsi5er*tion o% CAure'io's D
ret*inin4 2is s2*re in t2e re&*inin4 %*&i'( >usinesses $&ost'(, &ovie t2e*ters, s2i66in4 *n5 '*n5
5eve'o6&ent, *n5 +ontri>utin4 2is in5ustr( to t2e +ontinue5 o6er*tion o% t2ese >usinesses,
CAure'ioD @i'' >e 4iven P7 !i''ion or 7;H eIuit( in *'' t2ese >usinesses *n5 t2ose to >e
su>seIuent'( *+Iuire5 >( t2e& @2i+2ever is 4re*ter. . . .

A.;7 ' %ro& 99 June 7:E1 to *>out Au4ust 9;;7, or CinD * s6*n o% 9F (e*rs, CAure'ioD *n5 E5u*r5o
2*5 *++u&u'*te5 in t2eir )oint ventureG6*rtners2i6 v*rious *ssets in+'u5in4 >ut not 'i&ite5 to t2e
+or6or*te 5e%en5*nts *n5 Ct2eirD res6e+tive *ssets.

A.;9 In *55ition . . . t2e )oint ventureG6*rtners2i6 ' 2*5 *'so *+Iuire5 Cv*rious ot2er *ssetsD, >ut
E5u*r5o +*use5 to >e re4istere5 in t2e n*&es o% ot2er 6*rties' .

333 333 ' 333

A.;A T2e su>st*nti*' *ssets o% &ost o% t2e +or6or*te 5e%en5*nts +onsist o% re*' 6ro6erties '. A 'ist
o% so&e o% t2ese re*' 6ro6erties is *tt*+2e5 2ereto *n5 &*5e *n inte4r*' 6*rt *s Anne3 'B.
333 ' 333 333

?.;9 So&eti&e in 7::9, t2e re'*tions >et@een CAure'ioD *n5 E5u*r5o >e+*&e sour so t2*t
CAure'ioD reIueste5 %or *n *++ountin4 *n5 'iIui5*tion o% 2is s2*re in t2e )oint ventureG6*rtners2i6
C>ut t2ese 5e&*n5s %or +o&6'ete *++ountin4 *n5 'iIui5*tion @ere not 2ee5e5D.

333 333 333

?.;? J2*t is @orse, CAure'ioD 2*s re*son*>'e +*use to >e'ieve t2*t E5u*r5o *n5Gor t2e +or6or*te
5e%en5*nts *s @e'' *s Bo>>( CY*n4D, *re tr*ns%errin4 . . . v*rious re*' 6ro6erties o% t2e
+or6or*tions >e'on4in4 to t2e )oint ventureG6*rtners2i6 to ot2er 6*rties in %r*u5 o% CAure'ioD. In
+onseIuen+e, CAure'ioD is t2ere%ore +*usin4 *t t2is ti&e t2e *nnot*tion on t2e tit'es o% t2ese re*'
6ro6erties' * noti+e o% 'is 6en5ens '. $E&62*sis in t2e ori4in*'K un5ers+orin4 *n5 @or5s in >r*+Bet
*55e5.,


.or e*se o% re%eren+e, Anne3 'A-7 o% t2e +o&6'*int, @2i+2 6etitioner *sserts to 2*ve >een &e*nt
%or 2i& >( 2is >rot2er E5u*r5o, 6ertinent'( re*5s<

7;, JR. $AKL, CRe%errin4 to 6etitioner Aure'io K. Liton)u*D<

You 2*ve no@ (our o@n 'i%e to 'ive *%ter 2*vin4 >een &*rrie5. '.

I *& tr(in4 &( >est to &o'5 (ou t2e @*( I @orB so (ou +*n %o''o@ t2e 6*ttern '. You @i'' >e t2e
on'( one 'e%t @it2 t2e +o&6*n(, *&on4 us >rot2ers *n5 I @i'' *sB (ou to st*( *s I @*nt (ou to run
t2is o%%i+e ever( ti&e I *& *@*(. I @*nt (ou to run it t2e @*( I *& tr(in4 to run it >e+*use I @i'' >e
*'' *'one *n5 I @i'' 5e6en5 entire'( to (ou $si+,. !( sons @i'' not >e re*5( to 2e'6 &e (et unti'
*>out &*(>e 7?G9; (e*rs %ro& no@. J2*tever is 'e%t in t2e +or6or*tion, I @i'' &*Be sure t2*t (ou
4et ONE !ILLION PESOS $P7,;;;,;;;.;;, or ten 6er+ent $7;H, eIuit(, @2i+2ever is 4re*ter.
Je t@o @i'' 4*&>'e t2e @2o'e t2in4 o% @2*t I 2*ve *n5 @2*t (ou *re entit'e5 to. '. It @i'' >e (ou
*n5 &e *'one on t2is. I% ever I 6*ss *@*(, I @*nt (ou to t*Be +*re o% *'' o% t2is. You Bee6 &(
s2*re %or &( t@o sons *re re*5( t*Be over >ut 4ive t2e& t2e +2*n+e to run t2e +o&6*n( @2i+2 I
2*ve >ui't.

'333 ' 333 333

Be+*use (ou @i'' nee5 * 6'*+e to st*(, I @i'' *rr*n4e to 4ive (ou %irst ONE UNDRED
TOUSANDS PESOS< $P7;;, ;;;.;;, in +*s2 or *sset, 'iBe Lt. Arti*4* so (ou +*n 'ive >etter
t2ere. T2e rest I @i'' 4ive (ou in %or& o% sto+Bs @2i+2 (ou +*n Bee6. T2is sto+B I *ssure (ou is
4oo5 *n5 s*'e*>'e. I @i'' *'so 4'*5'( 4ive (ou t2e s2*re o% J*+B-J*+B '*n5 /*''e( Go'% ' >e+*use
(ou 2*ve >een 4oo5. T2e rest @i'' >e in sto+Bs %ro& *'' t2e +or6or*tions @2i+2 I re6e*t, ten
6er+ent $7;H, eIuit(. C8D


On De+e&>er 9;, 9;;9, E5u*r5o *n5 t2e +or6or*te res6on5ents, *s 5e%en5*nts * Iuo, %i'e5 *
)oint ANSJER Jit2 "o&6u'sor( "ounter+'*i& 5en(in4 un5er o*t2 t2e &*teri*' *''e4*tions o% t2e
+o&6'*int, &ore 6*rti+u'*r'( t2*t 6ortion t2ereo% 5e6i+tin4 6etitioner *n5 E5u*r5o *s 2*vin4
entere5 into * +ontr*+t o% 6*rtners2i6. As *%%ir&*tive 5e%enses, E5u*r5o, et *'., *6*rt %ro& r*isin4
* )uris5i+tion*' &*tter, *''e4e5 t2*t t2e +o&6'*int st*tes no +*use o% *+tion, sin+e no +*use o%
*+tion &*( >e 5erive5 %ro& t2e *+tion*>'e 5o+u&ent, i.e., Anne3 'A-7', >ein4 voi5 un5er t2e
ter&s o% Arti+'e 7E8E in re'*tion to Arti+'e 7EE1 o% t2e "ivi' "o5e, in%r*. It is %urt2er *''e4e5 t2*t
@2*tever un5ert*Bin4 E5u*r5o *4ree5 to 5o, i% *n(, un5er Anne3 'A-7', *re unen%or+e*>'e un5er
t2e 6rovisions o% t2e St*tute o% .r*u5s.CED

.or 2is 6*rt, Y*n4 - @2o @*s serve5 @it2 su&&ons 'on4 *%ter t2e ot2er 5e%en5*nts su>&itte5
t2eir *ns@er ' &ove5 to 5is&iss on t2e 4roun5, inter *'i*, t2*t, *s to 2i&, 6etitioner 2*s no +*use
o% *+tion *n5 t2e +o&6'*int 5oes not st*te *n(.CFD Petitioner o66ose5 t2is &otion to 5is&iss.

On J*nu*r( 7;, 9;;1, E5u*r5o, et *'., %i'e5 * !otion to Reso've A%%ir&*tive De%enses.C:D To t2is
&otion, 6etitioner inter6ose5 *n O66osition @it2 e3-P*rte !otion to Set t2e "*se %or Pre-tri*'.
C7;D

A+tin4 on t2e se6*r*te &otions i&&e5i*te'( *5verte5 to *>ove, t2e tri*' +ourt, in *n O&ni>us
Or5er 5*te5 !*r+2 ?, 9;;1, 5enie5 t2e *%%ir&*tive 5e%enses *n5, e3+e6t %or Y*n4, set t2e +*se
%or 6re-tri*' on A6ri' 7;, 9;;1.C77D

In *not2er O&ni>us Or5er o% A6ri' 9, 9;;1, t2e s*&e +ourt 5enie5 t2e &otion o% E5u*r5o, et *'.,
%or re+onsi5er*tionC79D *n5 Y*n4's &otion to 5is&iss. T2e %o''o@in4 t2en tr*ns6ire5 inso%*r *s
Y*n4 is +on+erne5<

7. On A6ri' 7A, 9;;1, Y*n4 %i'e5 2is ANSJER, >ut e36ress'( reserve5 t2e ri42t to seeB
re+onsi5er*tion o% t2e A6ri' 9, 9;;1 O&ni>us Or5er *n5 to 6ursue 2is %*i'e5 &otion to
5is&issC71D to its %u'' reso'ution.

9. On A6ri' 9A, 9;;1, 2e &ove5 %or re+onsi5er*tion o% t2e O&ni>us Or5er o% A6ri' 9, 9;;1, >ut 2is
&otion @*s 5enie5 in *n Or5er o% Ju'( A, 9;;1.C7AD

1. On Au4ust 98, 9;;1, Y*n4 @ent to t2e "ourt o% A66e*'s $"A, in * 6etition %or +ertior*ri un5er
Ru'e 8? o% t2e Ru'es o% "ourt, 5o+Bete5 *s "A-G.R. SP No. EFEEA,C7?D to nu''i%( t2e se6*r*te
or5ers o% t2e tri*' +ourt, t2e %irst 5en(in4 2is &otion to 5is&iss t2e >*si+ +o&6'*int *n5, t2e
se+on5, 5en(in4 2is &otion %or re+onsi5er*tion.


E*r'ier, E5u*r5o *n5 t2e +or6or*te 5e%en5*nts, on t2e +ontention t2*t 4r*ve *>use o% 5is+retion
*n5 in)u5i+ious 2*ste *tten5e5 t2e issu*n+e o% t2e tri*' +ourt's *%ore&entione5 O&ni>us Or5ers
5*te5 !*r+2 ?, *n5 A6ri' 9, 9;;1, sou42t re'ie% %ro& t2e "A vi* si&i'*r re+ourse. T2eir 6etition %or
+ertior*ri @*s 5o+Bete5 *s "A G.R. SP No. E8:FE. '

Per its reso'ution 5*te5 O+to>er 9, 9;;1,C78D t2e "A's 7At2 Division or5ere5 t2e +onso'i5*tion o%
"A G.R. SP No. EFEEA @it2 "A G.R. SP No. E8:FE.

.o''o@in4 t2e su>&ission >( t2e 6*rties o% t2eir res6e+tive !e&or*n5* o% Aut2orities, t2e
*66e''*te +ourt +*&e out @it2 t2e 2erein *ss*i'e5 De+ision 5*te5 !*r+2 17, 9;;A, %in5in4 %or
E5u*r5o *n5 Y*n4, *s 'e*5 6etitioners t2erein, 5is6osin4 *s %o''o@s<

JERE.ORE, )u54&ent is 2ere>( ren5ere5 4r*ntin4 t2e issu*n+e o% t2e @rit o% +ertior*ri in
t2ese +onso'i5*te5 +*ses *nnu''in4, reversin4 *n5 settin4 *si5e t2e *ss*i'e5 or5ers o% t2e +ourt
* Iuo 5*te5 !*r+2 ?, 9;;1, A6ri' 9, 9;;1 *n5 Ju'( A, 9;;1 *n5 t2e +o&6'*int %i'e5 >( 6riv*te
res6on5ent Cno@ 6etitioner Aure'ioD *4*inst *'' t2e 6etitioners Cno@ 2erein res6on5ents E5u*r5o,
et *'.D @it2 t2e +ourt * Iuo is 2ere>( 5is&isse5.
SO ORDERED.C7ED $E&62*sis in t2e ori4in*'K @or5s in >r*+Bet *55e5.,

E36'*inin4 its +*se 5is6osition, t2e *66e''*te +ourt st*te5, inter *'i*, t2*t t2e *''e4e5 6*rtners2i6,
*s evi5en+e5 >( t2e *+tion*>'e 5o+u&ents, Anne3 'A *n5 'A-7 *tt*+2e5 to t2e +o&6'*int, *n5
u6on @2i+2 6etitioner so'e'( 6re5i+*tes 2is ri42tGs *''e4e5'( vio'*te5 >( E5u*r5o, Y*n4 *n5 t2e
+or6or*te 5e%en5*nts * Iuo is 'voi5 or 'e4*''( ine3istent.
In ti&e, 6etitioner &ove5 %or re+onsi5er*tion >ut 2is &otion @*s 5enie5 >( t2e "A in its eIu*''(
*ss*i'e5 Reso'ution o% De+e&>er E, 9;;A.C7FD .

en+e, 6etitioner's 6resent re+ourse, on t2e +ontention t2*t t2e "A erre5<

A. J2en it ru'e5 t2*t t2ere @*s no 6*rtners2i6 +re*te5 >( t2e *+tion*>'e 5o+u&ent >e+*use t2is
@*s not * 6u>'i+ instru&ent *n5 i&&ov*>'e 6ro6erties @ere +ontri>ute5 to t2e 6*rtners2i6.

B. J2en it ru'e5 t2*t t2e *+tion*>'e 5o+u&ent 5i5 not +re*te * 5e&*n5*>'e ri42t in %*vor o%
6etitioner.

". J2en it ru'e5 t2*t t2e +o&6'*int st*te5 no +*use o% *+tion *4*inst Cres6on5entD Ro>ert Y*n4K
*n5

D. J2en it ru'e5 t2*t 6etitioner 2*s +2*n4e5 2is t2eor( on *66e*' @2en *'' t2*t Petitioner 2*5
5one @*s to su66ort 2is 6'e*5e5 +*use o% *+tion >( *not2er 'e4*' 6ers6e+tiveG*r4u&ent.


T2e 6etition '*+Bs &erit.

Petitioner's 5e&*n5, *s 5e%ine5 in t2e 6etitor( 6ortion o% 2is +o&6'*int in t2e tri*' +ourt, is %or
5e'iver( or 6*(&ent to 2i&, *s E5u*r5o's *n5 Y*n4's 6*rtner, o% 2is 6*rtners2i6G)oint venture
s2*re, *%ter *n *++ountin4 2*s >een 5u'( +on5u+te5 o% @2*t 2e 5ee&s to >e 6*rtners2i6G)oint
venture 6ro6ert(.C7:D

A 6*rtners2i6 e3ists @2en t@o or &ore 6ersons *4ree to 6'*+e t2eir &one(, e%%e+ts, '*>or, *n5
sBi'' in '*@%u' +o&&er+e or >usiness, @it2 t2e un5erst*n5in4 t2*t t2ere s2*'' >e * 6ro6ortion*te
s2*rin4 o% t2e 6ro%its *n5 'osses >et@een t2e&.C9;D A +ontr*+t o% 6*rtners2i6 is 5e%ine5 >( t2e
"ivi' "o5e *s one @2ere t@o or &ore 6ersons >oun5 t2e&se'ves to +ontri>ute &one(, 6ro6ert(,
or in5ustr( to * +o&&on %un5 @it2 t2e intention o% 5ivi5in4 t2e 6ro%its *&on4 t2e&se'ves.C97D A
)oint venture, on t2e ot2er 2*n5, is 2*r5'( 5istin4uis2*>'e %ro&, *n5 &*( >e 'iBene5 to, *
6*rtners2i6 sin+e t2eir e'e&ents *re si&i'*r, i.e., +o&&unit( o% interests in t2e >usiness *n5
s2*rin4 o% 6ro%its *n5 'osses. Bein4 * %or& o% 6*rtners2i6, * )oint venture is 4ener*''( 4overne5
>( t2e '*@ on 6*rtners2i6.C99D

T2e un5er'(in4 issue t2*t ne+ess*ri'( +o&es to &in5 in t2is 6ro+ee5in4s is @2et2er or not
6etitioner *n5 res6on5ent E5u*r5o *re 6*rtners in t2e t2e*tre, s2i66in4 *n5 re*'t( >usiness, *s
one +'*i&s >ut @2i+2 t2e ot2er 5enies. An5 t2e issue >e*rin4 on t2e %irst *ssi4ne5 error re'*tes
to t2e Iuestion o% @2*t 'e4*' 6rovision is *66'i+*>'e un5er t2e 6re&ises, 6etitioner seeBin4, *s it
@ere, to en%or+e t2e *+tion*>'e 5o+u&ent - Anne3 'A-7 - @2i+2 2e 5e6i+ts in 2is +o&6'*int to >e
t2e +ontr*+t o% 6*rtners2i6G)oint venture >et@een 2i&se'% *n5 E5u*r5o. "'e*r'(, t2en, * 'ooB *t
t2e 'e4*' 6rovisions 5eter&in*tive o% t2e e3isten+e, or 5e%inin4 t2e %or&*' reIuisites, o% *
6*rtners2i6 is in5i+*te5. .ore&ost o% t2ese *re t2e %o''o@in4 6rovisions o% t2e "ivi' "o5e<

Art. 7EE7. A 6*rtners2i6 &*( >e +onstitute5 in *n( %or&, e3+e6t @2ere i&&ov*>'e 6ro6ert( or
re*' ri42ts *re +ontri>ute5 t2ereto, in @2i+2 +*se * 6u>'i+ instru&ent s2*'' >e ne+ess*r(.

Art. 7EE9. Ever( +ontr*+t o% 6*rtners2i6 2*vin4 * +*6it*' o% t2ree t2ous*n5 6esos or &ore, in
&one( or 6ro6ert(, s2*'' *66e*r in * 6u>'i+ instru&ent, @2i+2 &ust >e re+or5e5 in t2e O%%i+e o%
t2e Se+urities *n5 E3+2*n4e "o&&ission.

.*i'ure to +o&6'( @it2 t2e reIuire&ent o% t2e 6re+e5in4 6*r*4r*62 s2*'' not *%%e+t t2e 'i*>i'it( o%
t2e 6*rtners2i6 *n5 t2e &e&>ers t2ereo% to t2ir5 6ersons.

Art. 7EE1. A +ontr*+t o% 6*rtners2i6 is voi5, @2enever i&&ov*>'e 6ro6ert( is +ontri>ute5 t2ereto,
i% *n inventor( o% s*i5 6ro6ert( is not &*5e, si4ne5 >( t2e 6*rties, *n5 *tt*+2e5 to t2e 6u>'i+
instru&ent.


Anne3 'A-7', on its %*+e, +ont*ins t(6e@ritten entries, 6erson*' in tone, >ut is unsi4ne5 *n5
un5*te5. As *n unsi4ne5 5o+u&ent, t2ere +*n >e no Iui>>'in4 t2*t Anne3 'A-7 5oes not &eet t2e
6u>'i+ instru&ent*tion reIuire&ents e3*+te5 un5er Arti+'e 7EE7 o% t2e "ivi' "o5e. !oreover,
>ein4 unsi4ne5 *n5 5ou>t'ess re%errin4 to * 6*rtners2i6 invo'vin4 &ore t2*n P1,;;;.;; in &one(
or 6ro6ert(, Anne3 'A-7 +*nnot >e 6resente5 %or not*riL*tion, 'et *'one re4istere5 @it2 t2e
Se+urities *n5 E3+2*n4e "o&&ission $SE",, *s +*''e5 %or un5er t2e Arti+'e 7EE9 o% t2e "o5e.
An5 in*s&u+2 *s t2e inventor( reIuire&ent un5er t2e su++ee5in4 Arti+'e 7EE1 4oes into t2e
&*tter o% v*'i5it( @2en i&&ov*>'e 6ro6ert( is +ontri>ute5 to t2e 6*rtners2i6, t2e ne3t 'o4i+*'
6oint o% inIuir( turns on t2e n*ture o% 6etitioner's +ontri>ution, i% *n(, to t2e su66ose5
6*rtners2i6.

T2e "A, *55ressin4 t2e %ore4oin4 Iuer(, +orre+t'( st*te5 t2*t 6etitioner's +ontri>ution +onsiste5
o% i&&ov*>'es *n5 re*' ri42ts. Jrote t2*t +ourt<

A %urt2er e3*&in*tion o% t2e *''e4*tions in t2e +o&6'*int @ou'5 s2o@ t2*t C6etitioner's D
+ontri>ution to t2e so-+*''e5 '6*rtners2i6G)oint venture @*s 2is su66ose5 s2*re in t2e %*&i'(
>usiness t2*t is +onsistin4 o% &ovie t2e*ters, s2i66in4 *n5 '*n5 5eve'o6&ent un5er 6*r*4r*62
1.;9 o% t2e +o&6'*int. In ot2er @or5s, 2is +ontri>ution *s * 6*rtner in t2e *''e4e5 6*rtners2i6G)oint
venture +onsiste5 o% i&&ov*>'e 6ro6erties *n5 re*' ri42ts. '.C91D

Si4ni%i+*nt'( enou42, 6etitioner &*tter-o%-%*+t'( +on+urre5 @it2 t2e *66e''*te +ourt's o>serv*tion
t2*t, 6res+in5in4 %ro& @2*t 2e 2i&se'% *''e4e5 in 2is >*si+ +o&6'*int, 2is +ontri>ution to t2e
6*rtners2i6 +onsiste5 o% 2is s2*re in t2e Liton)u* %*&i'( >usinesses @2i+2 o@ne5 v*ri*>'e
i&&ov*>'e 6ro6erties. Petitioner's *ssertion in 2is &otion %or re+onsi5er*tionC9AD o% t2e "A's
5e+ision, t2*t '@2*t @*s to >e +ontri>ute5 to t2e >usiness Co% t2e 6*rtners2i6D @*s C6etitioner's D
in5ustr( *n5 2is s2*re in t2e %*&i'( Ct2e*tre *n5 '*n5 5eve'o6&entD >usiness' 'e*ves no roo& %or
s6e+u'*tion *s to @2*t 6etitioner +ontri>ute5 to t2e 6er+eive5 6*rtners2i6.

Lest it >e over'ooBe5, t2e +ontr*+t-v*'i5*tin4 inventor( reIuire&ent un5er Arti+'e 7EE1 o% t2e
"ivi' "o5e *66'ies *s 'on4 re*' 6ro6ert( or re*' ri42ts *re initi*''( >rou42t into t2e 6*rtners2i6. In
s2ort, it is re*''( o% no &o&ent @2i+2 o% t2e 6*rtners, or, in t2is +*se, @2o >et@een 6etitioner *n5
2is >rot2er E5u*r5o, +ontri>ute5 i&&ov*>'es. In +onte3t, t2e &ore i&6ort*nt +onsi5er*tion is
t2*t re*' 6ro6ert( @*s +ontri>ute5, in @2i+2 +*se *n inventor( o% t2e +ontri>ute5 6ro6ert( 5u'(
si4ne5 >( t2e 6*rties s2ou'5 >e *tt*+2e5 to t2e 6u>'i+ instru&ent, e'se t2ere is 'e4*''( no
6*rtners2i6 to s6e*B o%.

Petitioner, in *n o>vious >i5 to ev*5e t2e *66'i+*tion o% Arti+'e 7EE1, *r4ues t2*t t2e i&&ov*>'es
in Iuestion @ere not +ontri>ute5, >ut @ere *+Iuire5 *%ter t2e %or&*tion o% t2e su66ose5
6*rtners2i6. Nee5'ess to stress, t2e "ourt +*nnot *++or5 +o4en+( to t2is s6e+ious *r4u&ent.
.or, *s e*r'ier st*te5, 6etitioner 2i&se'% *5&itte5 +ontri>utin4 2is s2*re in t2e su66ose5 s2i66in4,
&ovie t2e*tres *n5 re*'t( 5eve'o6&ent %*&i'( >usinesses @2i+2 *'re*5( o@ne5 i&&ov*>'es
even >e%ore Anne3 'A-7 @*s *''e4e5'( e3e+ute5.

"onsi5erin4 t2us t2e v*'ue *n5 n*ture o% 6etitioner's *''e4e5 +ontri>ution to t2e 6ur6orte5
6*rtners2i6, t2e "ourt, even i% so 5is6ose5, +*nnot 6'*usi>'( e3ten5 Anne3 'A-7 t2e 'e4*' e%%e+ts
t2*t 6etitioner so 5esires *n5 6'e*5s to >e 4iven. Anne3 'A-7, in %ine, +*nnot su66ort t2e
e3isten+e o% t2e 6*rtners2i6 sue5 u6on *n5 sou42t to >e en%or+e5. T2e 'e4*' *n5 %*+tu*' &i'ieu
o% t2e +*se +*''s %or t2is 5is6osition. A 6*rtners2i6 &*( >e +onstitute5 in *n( %or&, s*ve @2en
i&&ov*>'e 6ro6ert( or re*' ri42ts *re +ontri>ute5 t2ereto or @2en t2e 6*rtners2i6 2*s * +*6it*' o%
*t 'e*st P1,;;;.;;, in @2i+2 +*se * 6u>'i+ instru&ent s2*'' >e ne+ess*r(.C9?D An5 i% on'( to stress
@2*t 2*s re6e*te5'( >een *rti+u'*te5, *n inventor( to >e si4ne5 >( t2e 6*rties *n5 *tt*+2e5 to
t2e 6u>'i+ instru&ent is *'so in5is6ens*>'e to t2e v*'i5it( o% t2e 6*rtners2i6 @2enever i&&ov*>'e
6ro6ert( is +ontri>ute5 to it.

Given t2e %ore4oin4 6ers6e+tive, @2*t t2e *66e''*te +ourt @rote in its *ss*i'e5 De+isionC98D
*>out t2e 6ro>*tive v*'ue *n5 'e4*' e%%e+t o% Anne3 'A-7 +o&&en5s itse'% %or +on+urren+e<

"onsi5erin4 t2*t t2e *''e4*tions in t2e +o&6'*int s2o@e5 t2*t C6etitionerD +ontri>ute5 i&&ov*>'e
6ro6erties to t2e *''e4e5 6*rtners2i6, t2e '!e&or*n5u& $Anne3 'A o% t2e +o&6'*int, @2i+2
6ur6orts to est*>'is2 t2e s*i5 '6*rtners2i6G)oint venture is NOT * 6u>'i+ instru&ent *n5 t2ere @*s
NO inventor( o% t2e i&&ov*>'e 6ro6ert( 5u'( si4ne5 >( t2e 6*rties. As su+2, t2e s*i5
'!e&or*n5u& ' is nu'' *n5 voi5 %or 6ur6oses o% est*>'is2in4 t2e e3isten+e o% * v*'i5 +ontr*+t o%
6*rtners2i6. In5ee5, >e+*use o% t2e %*i'ure to +o&6'( @it2 t2e essenti*' %or&*'ities o% * v*'i5
+ontr*+t, t2e 6ur6orte5 '6*rtners2i6G)oint venture is 'e4*''( ine3istent *n5 it 6ro5u+es no e%%e+t
@2*tsoever. Ne+ess*ri'(, * voi5 or 'e4*''( ine3istent +ontr*+t +*nnot >e t2e sour+e o% *n(
+ontr*+tu*' or 'e4*' ri42t. A++or5in4'(, t2e *''e4*tions in t2e +o&6'*int, in+'u5in4 t2e *+tion*>'e
5o+u&ent *tt*+2e5 t2ereto, +'e*r'( 5e&onstr*tes t2*t C6etitionerD 2*s NO v*'i5 +ontr*+tu*' or
'e4*' ri42t @2i+2 +ou'5 >e vio'*te5 >( t2e Cin5ivi5u*' res6on5entsD 2erein. As * +onseIuen+e,
C6etitioner's D +o&6'*int 5oes NOT st*te * v*'i5 +*use o% *+tion >e+*use NOT *'' t2e essenti*'
e'e&ents o% * +*use o% *+tion *re 6resent. $Un5ers+orin4 *n5 @or5s in >r*+Bet *55e5.,


LiBe@ise @e''-t*Ben *re t2e %o''o@in4 +o&6'e&ent*r( e3+er6ts %ro& t2e "A's eIu*''( *ss*i'e5
Reso'ution o% De+e&>er E, 9;;AC9ED 5en(in4 6etitioner's &otion %or re+onsi5er*tion<

.urt2er, Je +on+'u5e t2*t 5es6ite 4'*rin4 5e%e+ts in t2e *''e4*tions in t2e +o&6'*int *s @e'' *s
t2e *+tion*>'e 5o+u&ent *tt*+2e5 t2ereto $Ro''o, 6. 7:7,, t2e Ctri*'D +ourt 5i5 not *66re+i*te *n5
*66'( t2e 'e4*' 6rovisions @2i+2 @ere >rou42t to its *ttention >( 2erein Cres6on5entsD in t2e t2eir
6'e*5in4s. In our ev*'u*tion o% C6etitioner's D +o&6'*int, t2e '*tter *''e4e5 inter *'i* to 2*ve
+ontri>ute5 i&&ov*>'e 6ro6erties to t2e *''e4e5 6*rtners2i6 >ut t2e *+tion*>'e 5o+u&ent is not *
6u>'i+ 5o+u&ent *n5 t2ere @*s no inventor( o% i&&ov*>'e 6ro6erties si4ne5 >( t2e 6*rties. Bot2
t2e *''e4*tions in t2e +o&6'*int *n5 t2e *+tion*>'e 5o+u&ents +onsi5ere5, it is +r(st*' +'e*r t2*t
C6etitionerD 2*s no v*'i5 or 'e4*' ri42t @2i+2 +ou'5 >e vio'*te5 >( Cres6on5entsD. $Jor5s in >r*+Bet
*55e5.,


Un5er t2e se+on5 *ssi4ne5 error, it is 6etitioner's 6osture t2*t Anne3 'A-7', *ssu&in4 its
ine%%i+*+( or nu''it( *s * 6*rtners2i6 5o+u&ent, nevert2e'ess +re*te5 5e&*n5*>'e ri42ts in 2is
%*vor. As 6etitioner su++in+t'( 6uts it in t2is 6etition<

A1. "ontr*ri@ise, t2is *+tion*>'e 5o+u&ent, es6e+i*''( its *>ove-Iuote5 6rovisions, est*>'is2e5
*n *+tion*>'e +ontr*+t even t2ou42 it &*( not >e * 6*rtners2i6. T2is *+tion*>'e +ontr*+t is @2*t
is Bno@n *s *n inno&in*te +ontr*+t $"ivi' "o5e, Arti+'e 71;E,.

AA. It &*( not >e * +ontr*+t o% 'o*n, or * &ort4*4e or @2*tever, >ut sure'( t2e +ontr*+t 5oes
+re*te ri42ts *n5 o>'i4*tions o% t2e 6*rties *n5 @2i+2 ri42ts *n5 o>'i4*tions &*( >e en%or+e*>'e
*n5 5e&*n5*>'e. Just >e+*use t2e re'*tions2i6 +re*te5 >( t2e *4ree&ent +*nnot >e s6e+i%i+*''(
'*>e'e5 or 6i4eon2o'e5 into * +*te4or( o% no&in*te +ontr*+t 5oes not &e*n it is voi5 or
unen%or+e*>'e.
Petitioner 2*s t2us t2ruste5 t2e notion o% *n inno&in*te +ontr*+t on t2is' "ourt - *n5 e*r'ier on
t2e "A *%ter 2e e36erien+e5 * revers*' o% %ortune t2ere*t - *s *n *%tert2ou42t. T2e *66e''*te
+ourt, 2o@ever, +*nnot re*''( >e %*u'te5 %or not (ie'5in4 to 6etitioner's 5u>ious str*t*4e& o%
*'terin4 2is t2eor( o% )oint ventureG6*rtners2i6 to *n inno&in*te +ontr*+t. .or, *t >otto&, t2e
*66e''*te +ourt's +ertior*ri )uris5i+tion @*s +ir+u&s+ri>e5 >( @2*t @*s *''e4e5 to 2*ve >een t2e
or5erGs issue5 >( t2e tri*' +ourt in 4r*ve *>use o% 5is+retion. As res6on5ent Y*n4 6ointe5'(
o>serve5,C9FD sin+e t2e 6*rties' >*si+ 6osition 2*5 >een @e''-5e%ine5, t2*t o% 6etitioner >ein4 t2*t
t2e *+tion*>'e 5o+u&ent est*>'is2e5 * 6*rtners2i6G)oint venture, it is on t2ose 6ositions t2*t t2e
*66e''*te +ourt e3er+ise5 its +ertior*ri )uris5i+tion. Petitioner's *+t o% +2*n4in4 2is ori4in*' t2eor(
is *n i&6er&issi>'e 6r*+ti+e *n5 +onstitutes, *s t2e "A *6t'( 5e+'*re5, *n *5&ission o% t2e
unten*>i'it( o% su+2 t2eor( in t2e %irst 6'*+e.

CPetitionerD is no@ 2u&&in4 * 5i%%erent tune . . . . In * su55en t@ist o% st*n+e, 2e 2*s no@
+onten5e5 t2*t t2e *+tion*>'e instru&ent &*( >e +onsi5ere5 *n inno&in*te +ontr*+t. 333 /eri'(,
t2is no@ +2*n4es C6etitioner's D t2eor( o% t2e +*se @2i+2 is not on'( 6ro2i>ite5 >( t2e Ru'es >ut
*'so is *n i&6'ie5 *5&ission t2*t t2e ver( t2eor( 2e 2i&se'% ' 2*s *5o6te5, %i'e5 *n5 6rose+ute5
>e%ore t2e res6on5ent +ourt is erroneous.

Be t2*t *s it &*( . '. Je 2o'5 t2*t t2is ne@ t2eor( +ontr*venes C6etitioner's D t2eor( o% t2e
*+tion*>'e 5o+u&ent >ein4 * 6*rtners2i6 5o+u&ent. I% *n(t2in4, it is so o>vious @e 5o 2*ve to
test t2e su%%i+ien+( o% t2e +*use o% *+tion on t2e >*sis o% 6*rtners2i6 '*@ 333.C9:D $E&62*sis in
t2e ori4in*'K Jor5s in >r*+Bet *55e5,.

But even *ssu&in4 in 4r*ti* *r4u&enti t2*t Anne3 'A-7 6*rt*Bes o% * 6er%e+te5 inno&in*te
+ontr*+t, 6etitioner's +o&6'*int @ou'5 sti'' >e 5is&issi>'e *s *4*inst E5u*r5o *n5, &ore so,
*4*inst Y*n4. It +*nnot >e over-e&62*siLe5 t2*t 6etitioner 6oints to E5u*r5o *s t2e *ut2or o%
Anne3 'A-7. Jit2*', even on t2is +onsi5er*tion *'one, 6etitioner's +'*i& *4*inst Y*n4 is 5oo&e5
%ro& t2e ver( st*rt.

'As it @ere, t2e on'( 6ortion o% Anne3 'A-7 @2i+2 +ou'5 6er2*6s >e re&ote'( re4*r5e5 *s vestin4
6etitioner @it2 * ri42t to 5e&*n5 %ro& res6on5ent E5u*r5o t2e o>serv*n+e o% * 5eter&in*te
+on5u+t, re*5s<

' 333 You @i'' >e t2e on'( one 'e%t @it2 t2e +o&6*n(, *&on4 us >rot2ers *n5 I @i'' *sB (ou to st*(
*s I @*nt (ou to run t2is o%%i+e ever(ti&e I *& *@*(. I @*nt (ou to run it t2e @*( I *& tr(in4 to
run it >e+*use I @i'' >e *'one *n5 I @i'' 5e6en5 entire'( to (ou, !( sons @i'' not >e re*5( to 2e'6
&e (et unti' *>out &*(>e 7?G9; (e*rs %ro& no@. J2*tever is 'e%t in t2e +or6or*tion, I @i'' &*Be
sure t2*t (ou 4et ONE !ILLION PESOS $P7,;;;,;;;.;;, or ten 6er+ent $7;H, eIuit(, @2i+2ever
is 4re*ter. $Un5ers+orin4 *55e5,


It is *t on+e *66*rent t2*t @2*t res6on5ent E5u*r5o i&6ose5 u6on 2i&se'% un5er t2e *>ove
6*ss*4e, i% 2e in5ee5 @rote Anne3 'A-7', is * 6ro&ise @2i+2 is not to >e 6er%or&e5 @it2in one
(e*r %ro& '+ontr*+t e3e+ution on June 99, 7:E1. A++or5in4'(, t2e *4ree&ent e&>o5ie5 in Anne3
'A-7 is +overe5 >( t2e St*tute o% .r*u5s *n5 er4o unen%or+e*>'e %or non-+o&6'i*n+e t2ere@it2.
C1;D B( %or+e o% t2e st*tute o% %r*u5s, *n *4ree&ent t2*t >( its ter&s is not to >e 6er%or&e5 @it2in
* (e*r %ro& t2e &*Bin4 t2ereo% s2*'' >e unen%or+e*>'e >( *+tion, un'ess t2e s*&e, or so&e note
or &e&or*n5u& t2ereo%, >e in @ritin4 *n5 su>s+ri>e5 >( t2e 6*rt( +2*r4e5. "oro''*ri'(, no *+tion
+*n >e 6rove5 un'ess t2e reIuire&ent e3*+te5 >( t2e st*tute o% %r*u5s is +o&6'ie5 @it2.C17D
Lest it >e over'ooBe5, 6etitioner is t2e inten5e5 >ene%i+i*r( o% t2e P7 !i''ion or 7;H eIuit( o% t2e
%*&i'( >usinesses su66ose5'( 6ro&ise5 >( E5u*r5o to 4ive in t2e ne*r %uture. An( su44estion
t2*t t2e st*te5 *&ount or t2e eIuit( +o&6onent o% t2e 6ro&ise @*s inten5e5 to 4o to * +o&&on
%un5 @ou'5 >e to re*5 so&et2in4 not @ritten in Anne3 'A-7. T2us, even t2is *n4'e *'one *r4ues
*4*inst t2e ver( i5e* o% * 6*rtners2i6, t2e+re*tion o% @2i+2 reIuires t@o or &ore +ontr*+tin4
&in5s &utu*''( *4reein4 to +ontri>ute &one(, 6ro6ert( or in5ustr( to * +o&&on %un5 @it2 t2e
intention o% 5ivi5in4 t2e 6ro%its >et@een or *&on4 t2e&se'ves.C19D
In su& t2en, t2e "ourt ru'es, *s 5i5 t2e "A, t2*t 6etitioner's +o&6'*int %or s6e+i%i+ 6er%or&*n+e
*n+2ore5 on *n *+tion*>'e 5o+u&ent o% 6*rtners2i6 @2i+2 is 'e4*''( ine3istent or voi5 or, *t >est,
unen%or+e*>'e 5oes not st*te * +*use o% *+tion *s *4*inst res6on5ent E5u*r5o *n5 t2e
+or6or*te 5e%en5*nts. An5 i% no o% *+tion +*n su++ess%u''( >e &*int*ine5 *4*inst res6on5ent
E5u*r5o >e+*use no v*'i5 6*rtners2i6 e3iste5 >et@een 2i& *n5 6etitioner, t2e "ourt +*nnot see
its @*( +'e*r on 2o@ t2e s*&e *+tion +ou'5 6'*usi>'( 6ros6er *4*inst Y*n4. Sure'(, Y*n4 +ou'5
not 2*ve >e+o&e * 6*rtner in, or +ou'5 not 2*ve 2*5 *n( %or& o% >usiness re'*tions2i6 @it2, *n
ine3istent 6*rtners2i6.

As &*( >e note5, 6etitioner 2*s not, in 2is +o&6'*int, 6rovi5e t2e 'o4i+*' ne3us t2*t @ou'5 tie
Y*n4 to 2i& *s 2is 6*rtner. In %*+t, *tten5*nt +ir+u&st*n+es @ou'5 in5i+*te t2e +ontr*r(.
"onsi5er<

'7. Petitioner *sserte5 in 2is +o&6'*int t2*t 2is so-+*''e5 )oint ventureG6*rtners2i6 @it2 E5u*r5o
@*s '%or t2e +ontinu*tion o% t2eir %*&i'( >usiness *n5 +o&&on %*&i'( %un5s @2i+2 @ere
t2ereto%ore >ein4 &*in'( &*n*4e5 >( E5u*r5o. C11D But Y*n4 5enies Bins2i6 @it2 t2e Liton)u*
%*&i'( *n5 6etitioner 2*s not 5is6ute5 t2e 5is+'*i&er.

9. In so&e 5et*i', 6etitioner &entione5 @2*t 2e 2*5 +ontri>ute5 to t2e )oint ventureG6*rtners2i6
@it2 E5u*r5o *n5 @2*t 2is s2*re in t2e >usinesses @i'' >e. No *''e4*tion is &*5e @2*tsoever
*>out @2*t Y*n4 +ontri>ute5, i% *n(, 'et *'one 2is 6ro6ortion*' s2*re in t2e 6ro%its. But su+2
*''e4*tion +*nnot, 2o@ever, >e &*5e >e+*use, *s *6t'( o>serve5 >( t2e "A, t2e *+tion*>'e
5o+u&ent 5i5 not +ont*in su+2 6rovision, 'et *'one &ention t2e n*&e o% Y*n4. o@, in5ee5,
+ou'5 * 6erson >e +onsi5ere5 * 6*rtner @2en t2e 5o+u&ent 6ur6ortin4 to est*>'is2 t2e
6*rtners2i6 +ontr*+t 5i5 not even &ention 2is n*&e.

1. Petitioner st*tes' in 6*r. 9.;7 o% t2e +o&6'*int t2*t 'C2eD *n5 E5u*r5o *re >usiness 6*rtners in
t2e Cres6on5entD +or6or*tions, @2i'e 'Bo>>( is 2is *n5 E5u*r5o's 6*rtner in t2eir O5eon T2e*ter
invest&ent $6*r. 9.;1,. T2is &e*ns t2*t t2e 6*rtners2i6 >et@een 6etitioner *n5 E5u*r5o +*&e
%irstK Y*n4 >e+*&e t2eir 6*rtner in t2eir O5eon T2e*ter invest&ent t2ere*%ter. Sever*'
6*r*4r*62s '*ter, 2o@ever, 6etitioner @ou'5 +ontr*5i+t 2i&se'% >( *''e4in4 t2*t 2is 'invest&ent
*n5 t2*t o% E5u*r5o *n5 Y*n4 in t2e O5eon t2e*ter >usiness 2*s e36*n5e5 t2rou42 *
reinvest&ent o% 6ro%it in+o&e *n5 5ire+t invest&ents in sever*' +or6or*tion in+'u5in4 >ut not
'i&ite5 to Csi3D +or6or*te res6on5ents' T2is si&6'( &e*ns t2*t t2e 'O5eon T2e*tre >usiness'
+*&e >e%ore t2e +or6or*te res6on5ents. Si4ni%i+*nt'( enou42, 6etitioner re%ers to t2e +or6or*te
res6on5ents *s '6ro4en( o% t2e O5eon T2e*tre >usiness.C1AD

Nee5'ess to stress, 6etitioner 2*s not su%%i+ient'( est*>'is2e5 in 2is +o&6'*int t2e 'e4*' vin+u'u&
@2en+e 2e sour+e5 2is ri42t to 5r*4 Y*n4 into t2e %r*(. T2e "ourt o% A66e*'s, in its *ss*i'e5
5e+ision, +*6ture5 *n5 %or&u'*te5 t2e 'e4*' situ*tion in t2e %o''o@in4 @ise<

CRes6on5entD Y*n4, ' is i&6'e*5e5 >e+*use, *s *''e4e5 in t2e +o&6'*int, 2e is * '6*rtner o%
CE5u*r5oD *n5 t2e C6etitionerD in t2e O5eon T2e*ter Invest&ent @2i+2 e36*n5e5 t2rou42
reinvest&ents o% 6ro%its *n5 5ire+t invest&ents in sever*' +or6or*tions, t2us<

333 333 333

"'e*r'(, C6etitioner's D +'*i& *4*inst ' Y*n4 *rose %ro& 2is *''e4e5 6*rtners2i6 @it2 6etitioner *n5
t2e 'res6on5ent. o@ever, t2ere @*s NO *''e4*tion in t2e +o&6'*int @2i+2 5ire+t'( *''e4e5 2o@
t2e su66ose5 +ontr*+tu*' re'*tion @*s +re*te5 >et@een C6etitionerD *n5 'Y*n4. !ore i&6ort*nt'(,
2o@ever, t2e %ore4oin4 ru'in4 o% t2is "ourt t2*t t2e 6ur6orte5 6*rtners2i6 >et@een CE5u*r5oD is
voi5 *n5 'e4*''( ine3istent 5ire+t'( *%%e+ts s*i5 +'*i& *4*inst 'Y*n4. Sin+e C6etitionerD is tr(in4 to
est*>'is2 2is +'*i& *4*inst ' Y*n4 >( 'inBin4 2i& to t2e 'e4*''( ine3istent 6*rtners2i6 . . . su+2
*tte&6t 2*5 >e+o&e %uti'e >e+*use t2ere @*s NOTING t2*t @ou'5 +ontr*+tu*''( +onne+t
C6etitionerD *n5 ' Y*n4. To est*>'is2 * v*'i5 +*use o% *+tion, t2e +o&6'*int s2ou'5 2*ve *
st*te&ent o% %*+t u6on @2i+2 to +onne+t Cres6on5entD Y*n4 to t2e *''e4e5 6*rtners2i6 >et@een
C6etitionerD *n5 res6on5ent CE5u*r5oD, in+'u5in4 t2eir *''e4e5 invest&ent in t2e O5eon T2e*ter. A
st*te&ent o% %*+ts on t2ose &*tters is 6ivot*' to t2e +o&6'*int *s t2e( @ou'5 +onstitute t2e
u'ti&*te %*+ts ne+ess*r( to est*>'is2 t2e e'e&ents o% * +*use o% *+tion *4*inst ' Y*n4. C1?D

Pressin4 its 6oint, t2e "A '*ter st*te5 in its reso'ution 5en(in4 6etitioner's &otion %or
re+onsi5er*tion t2e %o''o@in4<

333 J2*tever t2e +o&6'*int +*''s it, it is t2e *+tion*>'e 5o+u&ent *tt*+2e5 to t2e +o&6'*int t2*t
is +ontro''in4. Su%%i+e it to st*te, Je 2*ve not i4nore5 t2e *+tion*>'e 5o+u&ent ' As * &*tter o%
%*+t, Je e&62*siLe5 in our 5e+ision ' t2*t inso%*r *s CY*n4D is +on+erne5, 2e is not even
&entione5 in t2e s*i5 *+tion*>'e 5o+u&ent. Je *re t2ere%ore 6uLL'e5 2o@ * 6erson not
&entione5 in * 5o+u&ent 6ur6ortin4 to est*>'is2 * 6*rtners2i6 +ou'5 >e +onsi5ere5 * 6*rtner.
C18D $Jor5s in >r*+Bet ours,.


T2e '*st issue r*ise5 >( 6etitioner, re%errin4 to @2et2er or not 2e +2*n4e5 2is t2eor( o% t2e +*se,
*s 6ere&6tori'( 5eter&ine5 >( t2e "A, 2*s >een 5is+usse5 *t 'en4t2 e*r'ier *n5 nee5 not 5et*in
us 'on4. Su%%i+e it to s*( t2*t *%ter t2e "A 2*s ru'e5 t2*t t2e *''e4e5 6*rtners2i6 is ine3istent,
6etitioner tooB * 5i%%erent t*+B. T2us, %ro& * )oint ventureG6*rtners2i6 t2eor( @2i+2 2e *5o6te5
*n5 +onsistent'( 6ursue5 in 2is +o&6'*int, 6etitioner e&>r*+e5 t2e inno&in*te +ontr*+t t2eor(.
I''ustr*tive o% t2is s2i%t is 6etitioner's st*te&ent in 6*r. MF o% 2is &otion %or re+onsi5er*tion o% t2e
"A's 5e+ision +o&>ine5 @it2 @2*t 2e s*i5 in 6*r. M A1 o% t2is 6etition, *s %o''o@s<

F. J2et2er or not t2e *+tion*>'e 5o+u&ent +re*tes * 6*rtners2i6, )oint venture, or @2*tever, is *
'e4*' &*tter. J2*t is 5eter&in*tive %or 6ur6oses o% su%%i+ien+( o% t2e +o&6'*in*nt's *''e4*tions, is
@2et2er t2e *+tion*>'e 5o+u&ent >e*rs out *n *+tion*>'e +ontr*+t ' >e it * 6*rtners2i6, * )oint
venture or @2*tever or so&e inno&in*te +ontr*+t ' It &*( >e note5 t2*t one Bin5 o% inno&in*te
+ontr*+t is @2*t is Bno@n *s 5u ut %*+i*s $I 4ive t2*t (ou &*( 5o,.C1ED

A1. "ontr*ri@ise, t2is *+tion*>'e 5o+u&ent, es6e+i*''( its *>ove-Iuote5 6rovisions, est*>'is2e5
*n *+tion*>'e +ontr*+t even t2ou42 it &*( not >e * 6*rtners2i6. T2is *+tion*>'e +ontr*+t is @2*t
is Bno@n *s *n inno&in*te +ontr*+t $"ivi' "o5e, Arti+'e 71;E,.C1FD


S6rin4in4 sur6rises on t2e o66osin4 6*rt( is o%%ensive to t2e s6ortin4 i5e* o% %*ir 6'*(, )usti+e *n5
5ue 6ro+essK 2en+e, t2e 6ros+ri6tion *4*inst * 6*rt( s2i%tin4 %ro& one t2eor( *t t2e tri*' +ourt to
* ne@ *n5 5i%%erent t2eor( in t2e *66e''*te +ourt.C1:D On t2e s*&e r*tion*'e, *n issue @2i+2 @*s
neit2er *verre5 in t2e +o&6'*int +*nnot >e r*ise5 %or t2e %irst ti&e on *66e*'.CA;D It is not 5i%%i+u't,
t2ere%ore, to *4ree @it2 t2e "A @2en it &*5e s2ort s2ri%t o% 6etitioner's inno&in*te +ontr*+t
t2eor( on t2e >*sis o% t2e %ore4oin4 >*si+ re*sons.
Petitioner's 6rotest*tion t2*t 2is *+t o% intro5u+in4 t2e +on+e6t o% inno&in*te +ontr*+t @*s not *
+*se o% +2*n4in4 t2eories >ut o% su66ortin4 2is 6'e*5e5 +*use o% *+tion ' t2*t o% t2e e3isten+e o%
* 6*rtners2i6 - >( *not2er 'e4*' 6ers6e+tiveG*r4u&ent, striBes t2e "ourt *s * str*ine5 *tte&6t to
r*tion*'iLe *n unten*>'e 6osition. P*r*4r*62 79 o% 2is &otion %or re+onsi5er*tion o% t2e "A's
5e+ision virtu*''( re'e4*tes 6*rtners2i6 *s * %*''->*+B t2eor(. T@o 6*r*4r*62s '*ter, in t2e s*&e
notion, 6etitioner %*u'ts t2e *66e''*te +ourt %or re*5in4, @it2 &(o6i+ e(es, t2e *+tion*>'e
5o+u&ent so'e'( *s est*>'is2in4 * 6*rtners2i6G)oint venture. /eri'(, t2e +ite5 6*r*4r*62s *re *
stu5( o% * 6*rt( 2e54in4 on @2et2er or not to 6ursue t2eori4in*' +*use o% *+tion or *'to4et2er
*>*n5onin4 t2e s*&e, t2us<

79. In+i5ent*''(, *ssu&in4 t2*t t2e *+tion*>'e 5o+u&ent +re*te5 * 6*rtners2i6 >et@een
Cres6on5entD E5u*r5o, Sr. *n5 C6etitionerD, no i&&ov*>'es @ere +ontri>ute5 to t2is 6*rtners2i6.
333

7A. A'' to'5, t2e De+ision t*Bes o%% %ro& * %*'se 6re&ise t2*t t2e *+tion*>'e 5o+u&ent *tt*+2e5 to
t2e +o&6'*int 5oes not est*>'is2 * +ontr*+tu*' re'*tions2i6 >et@een C6etitionerD *n5 ' E5u*r5o,
Sr. *n5 Ro>erto T Y*n4 si&6'( >e+*use 2is 5o+u&ent 5oes not +re*te * 6*rtners2i6 or * )oint
venture. T2is is ' * &(o6i+ re*5in4 o% t2e *+tion*>'e 5o+u&ent.

Per t2e "ourt's o@n +ount, 6etitioner use5 in 2is +o&6'*int t2e &i3e5 @or5s ')oint
ventureG6*rtners2i6 nineteen $7:, ti&es *n5 t2e ter& '6*rtner %our $A, ti&es. e &*5e re%eren+e
to t2e ''*@ o% )oint ventureG6*rtners2i6 C>ein4 *66'i+*>'eD to t2e >usiness re'*tions2i6 ' >et@een
C2i&D, E5u*r5o *n5 Bo>>( CY*n4D *n5 to 2is 'ri42ts in *'' s6e+i%i+ 6ro6erties' o% t2eir )oint
ventureG6*rtners2i6. Given t2is +onsi5er*tion, 6etitioner's ri42t o% *+tion *4*inst res6on5ents
E5u*r5o *n5 Y*n4 5ou>t'ess 6ivots on t2e e3isten+e o% t2e 6*rtners2i6 >et@een t2e t2ree o%
t2e&, *s 6ur6orte5'( evi5en+e5 >( t2e un5*te5 *n5 unsi4ne5 Anne3 'A-7. A voi5 Anne3 'A-7', *s'
*n *+tion*>'e 5o+u&ent o% 6*rtners2i6, @ou'5 stri6 6etitioner o% * +*use o% *+tion un5er t2e
6re&ises. A +o&6'*int %or 5e'iver( *n5 *++ountin4 o% 6*rtners2i6 6ro6ert( >*se5 on su+2 voi5 or
'e4*''( non-e3istent *+tion*>'e 5o+u&ent is 5is&issi>'e %or %*i'ure to st*te o% *+tion. So, in 4ist,
s*i5 t2e "ourt o% A66e*'s. T2e "ourt *4rees.
JERE.ORE, t2e inst*nt 6etition is DENIED *n5 t2e i&6u4ne5 De+ision *n5 Reso'ution o% t2e
"ourt o% A66e*'s A..IR!ED.
"ost *4*inst t2e 6etitioner.