Cebu Country Club, Inc. (CCCI) et al., v. Elizagaque,
G.R. No. 160273, January 18,$2008
FACTS:
•Cebu Country Club, Inc., is a domestic corporation operating as a non-profit
and non-stock private membership club.
•San Miguel Corporation, a special company proprietary member of CCCI,
designated respondent Ricardo Elizagaque, its Senior Vice President and
Operations Manager for the Visayas and Mindanao, as a special non-
proprietary member.
•In 1996, Elizagaque filed with CCCI an application for proprietary
membership, but such an application was disapproved by the Board of CCCI.
•The Articles of Incorporation of CCCI provides for the procedure for admission
of new members, which includes, among others, Article 1 Section 3(c)
“After the expiration of the aforesaid thirty (30) days, if no objections
have been filed or if there are, the Board considers the objections
unmeritorious, the candidate shall be qualified for inclusion in the
"Eligible-for-Membership List"
•On March 1, 1978, Section 3(c) was amended to read as follows:
•
(c) After the expiration of the aforesaid thirty (30) days, the Board may,
by unanimous vote of all directors present at a regular or special
meeting, approve the inclusion of the candidate in the "Eligible-for-
Membership List".
•Since the CCCI kept silent on the letter of consideration made by
Elizagaque, he filed with the RTC Branch 71 of Pasig City a complaint for
damages on December 23, 1998. RTC favored Elizagaque and
ordered CCCI to pay damages.
•On appeal by CCCI, the Court of Appeals in its decision dated
February 14, 2001, affirmed the decision of the RTC on the ground that CCCI
acted in bad faith in exercising their right to approve or disapprove
proprietary membership
ISSUE:
Whether or not Cebu Country Club is liable for damages for the disapproval of
Elizagaque’s application for proprietary membership?
RULING:
Yes. CCCI is liable.
