10.

Lim vs CA
GR No. 124716 January 24, 2000 BUENA, J.:

FACTS:
Pastor Lim died intestate wherein his surviving spouse, filed a joint petition for the
administration of the estate of Pastor Lim before the RTC. Private respondent's corporations,
whose properties were included in the inventory of the estate of Pastor Lim, filed a motion for
the lifting of lis pendens and motion for exclusion of certain properties from the estate of the
decedent. RTC, as probate court, granted these 2 motions. When Petitioner filed a verified
amended petition, Probate court also issued an order denying private respondents' motion for
exclusion.
Private respondent then filed a special civil action for certiorari before the CA questioning the
orders of the Regional Trial Court, sitting as a probate court. CA ruled in favor of herein private
respondents.
ISSUE:
Whether or not he doctrine of piercing the veil of corporate entity is applicable to be able to
include in the probate proceedings the company formed by deceased Pastor Lim, which are the
respondent corporations.
HELD:
No since corporations are clothed with personality separate and distinct from that of the persons
composing it and it may not generally be held liable for that of the persons composing it. It may
not also be held liable for the personal indebtedness of its stockholders or those of the entities
connected with it.
Mere ownership by a single stockholder or by another corporation of all or nearly all of the
capital stock of a corporation is not of itself a sufficient reason for disregarding the fiction of
separate personalities. To disregard the separate juridical personality of a corporation, the wrong
doing must be clearly and convincingly established, it cannot be presumed.