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Alfredo Velayo Vs Shell Company
Alfredo Velayo Vs Shell Company
Company
G.R. No. L-7817 – 100 Phil 168 – Civil Law – Torts and Damages –
Obligations arising from human relations
FACTS:
They also agreed not to file suit against CALI but CALI did reserve
that it will file insolvency proceedings should its assets be not
enough to pay them up. Shell Company was represented by a
certain Fitzgerald to the three man working committee. Later, the
working committee convened to discuss how CALI’s asset should
be divided amongst the creditors but while such was pending,
Fitzgerald sent a telegraph message to Shell USA advising the latter
that Shell Philippines is assigning its credit to Shell USA in the
amount of $79k, thereby effectively collecting almost all if not the
entire indebtedness of CALI to Shell Philippines.
Shell USA got wind of the fact that CALI has a C-54 plane is
California and so Shell USA petitioned before a California court to
have the plane be the subject of a writ of attachment which was
granted.
The C-54 plane was not recovered. Shell Company argued it is not
liable for damages because there is nothing in the law which
prohibits a company from assigning its credit, it being a common
practice.