Professional Documents
Culture Documents
De La Salle Montessori International of Malolos, Inc. vs. de La Salle Brothers, Inc
De La Salle Montessori International of Malolos, Inc. vs. de La Salle Brothers, Inc
_______________
* FIRST DIVISION.
39
40
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 2/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
41
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 3/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
JARDELEZA, J.:
Petitioner De La Salle Montessori International of
Malolos, Inc. filed this petition for review on certiorari1
under Rule 45 of the Rules of Court to challenge the
Decision2 of the Court of Appeals (CA) dated September 27,
2012 in C.A.-G.R. S.P. No. 116439 and its Resolution3
dated January 21, 2013 which denied petitioner’s motion
for reconsideration. The CA affirmed the Decision4 of the
Securities and Exchange Commission (SEC) En Banc dated
September 30, 2010, which in turn affirmed the Order5 of
the SEC Office of the General Counsel (OGC) dated May
12, 2010 directing petitioner to change or modify its
corporate name.
Petitioner reserved with the SEC its corporate name De
La Salle Montessori International Malolos, Inc. from June 4
to August 3, 2007,6 after which the SEC indorsed
petitioner’s articles of incorporation and bylaws to the
Department of Education (DepEd) for comments and
recommendation.7 The DepEd returned the indorsement
without objections.8 Consequently, the SEC issued a
certificate of incorporation to petitioner.9
Afterwards, DepEd Region III, City of San Fernando,
Pampanga granted petitioner government recognition for
its pre-
_______________
1 Rollo, pp. 10-29.
2 Id., at pp. 31-47. Penned by Associate Justice Socorro B. Inting, and
concurred in by Associate Justices Ricardo R. Rosario and Mario V. Lopez.
3 Id., at pp. 49-50.
4 Id., at pp. 99-106.
5 Id., at pp. 59-63.
6 Id., at p. 52.
7 Id., at p. 54.
8 Id., at p. 55.
9 Id., at p. 56.
42
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 4/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
_______________
10 Id., at p. 57.
11 Id., at p. 58.
12 Id., at pp. 32-33.
13 Id., at pp. 59-63.
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 5/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
43
_______________
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 6/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
44
_______________
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 7/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
45
_______________
23 51 Phil. 115 (1927).
24 Id., at p. 128.
25 Philips Export B.V. v. Court of Appeals, G.R. No. 96161, February
21, 1992, 206 SCRA 457, 462. Citation omitted.
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 8/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
26 Id.
27 Id., at pp. 462-463; citations omitted.
46
The policy underlying the prohibition in Section 18
against the registration of a corporate name which is
“identical or deceptively or confusingly similar” to that of
any existing corporation or which is “patently deceptive” or
“patently confusing” or “contrary to existing laws,” is the
avoidance of fraud upon the public which would have
occasion to deal with the entity concerned, the evasion of
legal obligations and duties, and the reduction of
difficulties of administration and supervision over
corporations.29
Indeed, parties organizing a corporation must choose a
name at their peril; and the use of a name similar to one
adopted by another corporation, whether a business or a
non-profit organization, if misleading or likely to injure in
the exercise of its corporate functions, regardless of intent,
may be prevented by the corporation having a prior right,
by a suit for injunction against the new corporation to
prevent the use of the name.30
_______________
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 9/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
47
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 10/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
_______________
31 Id.
32 Id., at p. 463.
33 Id.
34 Rollo, p. 41.
35 Id.
48
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 11/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
_______________
49
by the SEC OGC, all these words, when used with the
name “De La Salle,” can reasonably mislead a person using
ordinary care and discretion into thinking that petitioner is
an affiliate or a branch of, or is likewise founded by, any or
all of the respondents, thereby causing confusion.39
Petitioner’s argument that it obtained the words “De La
Salle” from the French word meaning “classroom,” while
respondents obtained it from the French priest named
Saint Jean Baptiste de La Salle,40 similarly does not hold
water. We quote with approval the ruling of the SEC En
Banc on this matter. Thus:
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 12/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
_______________
39 Id., at p. 62.
40 Id., at p. 20.
50
We affirm that the phrase “De La Salle” is not merely a
generic term. Respondents’ use of the phrase being
suggestive and may properly be regarded as fanciful,
arbitrary and whimsical, it is entitled to legal protection.42
Petitioner’s use of the phrase “De La Salle” in its corporate
name is patently similar to that of respondents that even
with reasonable care and observation, confusion might
arise. The Court notes not only the similarity in the parties’
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 13/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
names, but also the business they are engaged in. They are
all private educational institutions offering pre-elementary,
elementary and secon-
_______________
41 Id., at pp. 104-105, citing Societe Des Produits Nestlé, S.A. v. Court
of Appeals, G.R. No. 112012, April 4, 2001, 356 SCRA 207; and Philippine
Refining Co., Inc. v. Ng Sam, No. L-26676, July 30, 1982, 115 SCRA 472.
Italics in the original.
42 Ang v. Teodoro, 74 Phil. 50 (1942); See also Societe Des Produits
Nestlé, S.A. v. Court of Appeals, id.
51
_______________
52
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 15/17
2/17/2020 SUPREME COURT REPORTS ANNOTATED 855
_______________
53
——o0o——
_______________
50 Id., at p. 298.
www.central.com.ph/sfsreader/session/00000170517cc935af0abfac003600fb002c009e/t/?o=False 17/17