De Facto Corp.

by Estoppel

45. Macasaet vs Francisco

Doctrine/Statement/Definition of Terms:

 An Unincorporated association which represents

itself as a corporation is estopped from denying
its corporate capacity in a suit against it by a 3rd
person who relies in good faith on such
representation. “Abante Tonite’s newspaper are
circulated nationwide showing ostensibly its
being a corporate entity, thus the Doctrine of
Corporation by Estoppel from may
appropriately Apply.”

Facts:. Respondent, a retired Police officer sued Abante

Tonite,a daily tabloid of general circulation because of an
alleged libelous.

Abante Tonight is a daily tabloid of general circulation.

Hence for public consumption. Persons who organized
said publication derived profit from it, information written
on said newspaper will affect person, natural or juridical.
This implies that Abante Tonite falls within provision of
Art 44. New civil Code assuming that its not registered
with S.E.C, it is deemed a corporation by estoppels
considering that it possesses attributes of a Juridical
Person.

RTC denied petition. CA affirmed RTC Decision.

Issue: Whether Abante Tonite can be considered as a

corporation by Estoppel.

Ruling:

Yes. Petitioner’s contention that it could not be sued as

defendant because it is neither a natural or a Juridical
person cannot be sustained. It is categorized as a
corporation by estoppel having represented itself to the
reading public as corporation despite its not being
incorporated. Its non-incorporation with SEC is of no
consequence.

SC affirms CA decision.