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Case Title(s) and question/problem/issue Legal Provisions/Legal


Why is this a problem? Conclusion
Citation presented by the principle or Rule Involved
case(s)
YOUNG AUTO Was there a proper Young Auto Supply Co. Inc. sold all of Sec. 14 of the Corporation Yes. The Article of Incorporation of
SUPPLY v. CA venue? their shares of stock in CMDC to George Code. All corporations YASCO states that the place where the
Roxas for P8 000,000.00. Roxas has an organized under this code principal office of the corporation is to be
unpaid balance of P3, 400,000.00. Thus shall file with the Securities established or located is at Cebu City,
223 S 670 petitioners filed a complaint against him and Exchange Commission Philippines. The Court of Appeals thus erred
in the Regional Trial Court, Branch 11, articles of incorporation in in holding that the venue was improperly
Cebu City. Roxas filed a motion to any of the official languages laid in Cebu City.
dismiss on the ground that the venue was duly signed and
improperly laid. The trial court denied the acknowledged by all of the The Court ruled that to allow an action to be
motion. On appeal, the Court of Appeals incorporators, containing instituted in any place where the corporation
held that the venue was improperly laid in substantially the following has branch offices, would create confusion
Cebu City. It relied on the address of matters, except as otherwise and work untold inconvenience to said
YASCO, as appearing in the Deed of Sale, prescribed by this Code or entity. By the same token, a corporation
which is "No. 1708 Dominga Street, by special law: cannot be allowed to file personal actions in
Pasay City." This was the same address a place other than its principal place of
written in YASCO's letters and several 3. The place where the business unless such a place is also the
commercial documents in possession of principal office of the residence of a co-plaintiff or a defendant.
Roxas. In the case of Garcia, the Court of corporation is to be located, With the finding that the residence of
Appeals said that he gave Pasay City as which must be within the YASCO for purposes of venue is in Cebu
his address in letters, which he sent to Philippines. City, where its principal place of business is
Roxas' brothers and sisters. located, it becomes unnecessary to decide
whether Garcia is also a resident of Cebu
City and whether Roxas was in estoppel
from questioning the choice of Cebu City as
the venue.

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