Corpo Case Digest

CRUZ  VS. DALISAY

152 SCRA 482 (1987)

FACTS OF THE CASE

A sworn complaint was filed by Adelio Cruz charging Quiterio Dalisay, Senior Deputy Sheriff of Manila, with malfeasance in office, corrupt practices and serious irregularities who allegedly attached and/or levied the money belonging to complainant Cruz when he was not himself   the judgment debtor in the final judgment of an NLRC case sought to be enforced but rather the company known as “Qualitrans Limousine Service, Inc.”; and also caused the service of the alias writ of execution upon complainant who is a resident of Pasay City, despite knowledge that his territorial jurisdiction covers Manila only and does not extend to Pasay City.

Respondent, however, choose to pierce the veil of corporate entity usurping a power belonging to the court and assumed improvidently that since the complainant is the owner/president of Qualitrans Limousine Service, Inc., they are one and the same. His reply explained that when he garnished complainant’s cash deposit at the Phil trust bank he was merely performing a ministerial duty. And that while it is true that said writ was addressed to Qualitrans Limousine Service, Inc., it is also a fact that complainant had executed an affidavit before the Pasay City assistant fiscal stating that he is the owner/ president of Qualitrans. Because of that declaration, the counsel for the plaintiff in the labor case advised him to serve notice of garnishment on the Phil trust bank.

ISSUE

Whether the personal property of Cruz (complainant) can be levied or attached being the owner/president of the corporation.

RULING

No. The mere fact that one is president of the corporation does not render the property he owns or possesses the property of the corporation, since that president, as an individual, and the corporation, are separate entities. It is a well settled doctrine both in law and equity that as a legal entity, a corporation has a personality distinct and separate from its individual stockholders or members.