Module 1 Case 6

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Legal

Case Title(s) and question/problem/issue Legal Provisions/Legal


Why is this a problem? Conclusion
Citation presented by the principle or Rule Involved
case(s)
SULO NG May the plaintiff Sulo ng Bayan, Inc. filed an accion de It is a doctrine well- No. The property of the corporation is its
BAYAN v. corporation institute an revindicacion against defendants to established and obtains both property and not that of the stockholders, as
ARANETA action in behalf of its recover the ownership and possession of a at law and in equity that a owners, although they have equities in it.
individual members for large tract of land. The complaint alleged corporation is a distinct Properties registered in the name of the
the recovery of certain that its members had pioneered in the legal entity to be considered corporation are owned by it as an entity
72 S 347 parcels of land allegedly clearing of the said tract of land, as separate and apart from separate and distinct from its members.
owned by said cultivated and continuously possessed the the individual stockholders Conversely, a corporation ordinarily has no
members? said property openly and public under or members who compose interest in the individual property of its
concept of ownership adverse against the it, and is not affected by the stockholders unless transferred to the
whole world; that defendant Gregorio personal rights, obligations corporation, "even in the case of a one-man
Araneta, Inc. through force and and transactions of its corporation.
intimidation, ejected the members of the stockholders or members.
plaintiff corporation from their possession It has not been claimed that the members
of the aforementioned vast tract of land. have assigned or transferred whatever rights
Defendant filed a motion to dismiss on the they may have on the land in question to the
ground that the complaint states no cause plaintiff corporation. Absent any showing of
of action as the plaintiff lacks personality interest, therefore, a corporation, like
to file the instant action. plaintiff-appellant herein, has no personality
to bring an action for and in behalf of its
stockholders or members for the purpose of
recovering property which belongs to said
stockholders or members in their personal
capacities.

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