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Case 40 Turner v. Lorenzo Shipping Corp
Case 40 Turner v. Lorenzo Shipping Corp
Case 40 Turner v. Lorenzo Shipping Corp
DECISION
BERSAMIN, J : p
Ruling
The petition fails.
The CA correctly concluded that the RTC had exceeded its
jurisdiction in entertaining the petitioners' complaint in Civil Case No. 01-
086, and in rendering the summary judgment and issuing writ of
execution.
A.
Stockholder's Right of Appraisal, In General
A stockholder who dissents from certain corporate actions has the
right to demand payment of the fair value of his or her shares. This right,
known as the right of appraisal, is expressly recognized in Section 81 of
the Corporation Code,to wit:
Section 81.Instances of appraisal right.— Any stockholder of a
corporation shall have the right to dissent and demand payment of
the fair value of his shares in the following instances:
1. In case any amendment to the articles of incorporation has
the effect of changing or restricting the rights of any stockholder or
class of shares, or of authorizing preferences in any respect superior
to those of outstanding shares of any class, or of extending or
shortening the term of corporate existence;
2. In case of sale, lease, exchange, transfer, mortgage, pledge
or other disposition of all or substantially all of the corporate
property and assets as provided in the Code; and
3. In case of merger or consolidation. (n)
Even the fact that the respondent already had unrestricted retained earnings
more than sufficient to cover the petitioners' claims on June 26, 2002 (when they
filed their motion for partial summary judgment) did not rectify the absence of the
cause of action at the time of the commencement of Civil Case No. 01-086.
The motion for partial summary judgment,being a mere application for relief other
than by a pleading, 33 was not the same as the complaint in Civil Case No. 01-086.
Thereby, the petitioners did not meet the requirement of the Rules of Court that a
cause of action must exist at the commencement of an action, which is
"commenced by the filing of the original complaint in court." 34.
Footnotes
(Turner v. Lorenzo Shipping Corp., G.R. No. 157479, [November 24, 2010], 650
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PHIL 372-392)