World Wide Travel Service v. Court Of Appeals

TEEHANKEE, J.:

The parties assisted by their respective counsels have filed the following under date of February 21, 1978: SUBMISSION OF COMPROMISE AGREEMENT COME NOW the parties and the Administrator in the above-captioned case, assisted by their respective counsel, and to this Honorable Court most respectfully submit for approval the hereto attached Compromise Agreement, duly signed on January 26, 1978 by Mr. Antonio Abad Santos, Misses Erlinda Caparas, Mila G. Bello and Luisa Echaus, and World Wide Travel Service, Inc. and entered in the notarial registry of Manila a Notary Public Francisco G. Agustin as Doc. No. 175, Page No. 19, Book No. 115, Series of 1978, and on February 14, 1978 by Messrs. Augusto de Leon, Enrique Razon, Robert Ray Hollingsworth and Olympio G. Bermudez and entered in the notarial registry of Manila Notary Public Gilberto B. Pasimanero as Doc.

No. 444, Page No. 90, Book No. I, series of 1978. The said Compromise Agreement is intended by the parties to supplant the Project of Partition approved by the court a qou on May 13, 1975, particularly with respect to the shares of stocks of Honesta d. Kelly in World Wide Travel Service, Inc. which Mr. Augusto de leon is ceding to said World Wide Travel Service, Inc., to Robert Ray Hollingsworth, and the release of the balance of the consideration in the sum of P300,000.00, more or less, subject to minor modifications.

The parties, thru their respective counsel, and the administrator, hereby tender their most profound apologies to the Honorable court for the delay in arriving at this compromise agreement, said delay being attributable to the number of parties concerned and the fact that most of them were out of the Philippines during the negotiations. WHEREFORE, it is most respectfully prayed of this Honorable Court that thereto attached Compromise Agreement be approved, that a decision be promulgated along the lines of said Compromise Agreement and the same be remanded, together with the records of the above-captioned cases, to the court a qou for implementation. Manila Philippines, February 21, 1978.

PICAZO, SANTAYANA, REYES, TAYAO & ALFONSO Counsel for the Petitioners 3rd Floor, Zaragoza Bldg. Gamboa cor. Trasierra Streets Legaspi Village, Makati, Metro Manila By: (Sgd.) SALVADOR P. DE GUZMAN, JR.

PTR No. 060922F, Manila 2-16-78 LUNA, PURUGANAN, CRUZ, SISON & ONGKIKO Counsel for Respondents De Leon, et al. 6th Floor, Pacific Bank, Makati Blgd., 6776 Ayala Ave. Makati, Metro Manila By: (Sgd.) FERNANDO F. MANAS, JR. PTR.

No. 277659, Manila, 1-3-77 (Sgd.) ANTONIO C. AMOR Counsel for Respondent Hollingsworth LBC Bldg., 202 13th Street Port Area, Manila PTR No. 100302E, Manila, 1-5-77 (Sgd.) OLYMPIO G. BERMUDEZ Administrator Rms. 202-203, Capitan Pepe Bldg. Cm Recto cor.

Rizal Avenue Manila TAN 1083-621-1 The Compromise Agreement thus submitted by the parties with its Annexes is hereinbelow incorporated and provides as follows: COMPROMISE AGREEMENT KNOW ALL MEN BY THESE PRESENTS: This instrument, executed by and among the following: AUGUSTO DE LEON, of legal age, Filipino, married and with postal address at Doña Narcisa Building, Paseo de Roxas, Makati, Metro Manila, hereinafter referred to as the FIRST PARTY; WORLD WIDE TRAVEL SERVICE, INC., a domestic corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with principal offices at 1664 M. Adriatico Street, Ermita, Manila, hereinafter referred to as the SECOND PARTY, represented in this instance by Mr. ANTONIO ABAD SANTOS, duly authorized and empowered for the purpose; LUISA ECHAUS, of legal age, Filipino and with postal address at 1664 M. Adriatico Street, Ermita, Manila, hereinafter referred to as the THIRD PARTY, represented in this instance by her attorney-in-fact, Atty. SALVADOR P. DE GUZMAN, JR., whose Special Power of Attorney is hereto attached as Annex "A"; ANTONIO ABAD SANTOS, of legal age, Filipino, married and with postal address at Don Bonifacio Subdivison, Angeles City, ERLINDA CAPARAS, of legal age, Filipino and with postal address at 7447 Marcelo Village, Parañaque, Metro Manila, and MILA G. BELLO, of legal age, Filipino and with postal address at 2068 Kusang Loob Street, Sta.

Cruz, Manila, represented in this instance by her attorney-in-fact, ERLINDA CAPARAS, whose special Power of Attorney is hereto attached as Annex "B", all of whom are hereinafter collectively referred to as the FOURTH PARTY; ENRIQUE RAZON, of legal age, Filipino, married and with postal address at E. Razon, Inc., M. de Francisco street, Port Area, Manila, hereinafter referred to as the SIXTH PARTY; ROBERT RAY HOLLINGSWORTH, of legal age, American and with postal address at c/o Atty. Antonio Amor of 202 13th street, Port Area, manila, hereinafter referred to as the SIXTH PARTY; OLYMPIO G. BERMUDEZ, of legal age, Filipino, married and with postal address at Capitan Pepe Bldg., Rizal Avenue, Manila hereinafter referred to as the ADMINISTRATOR. WHEREAS, the late Honesta D. Kelly died on September 16, 1968, leaving as part of her estate the following; 1. A house and lot at No. 1 Jacaranda St., North Forbes, Makati, Metro Manila, covered by TCT No. 92112; 2.

A residential lot in Tagaytay City covered by TCT No. 92834; 3. Twenty Thousand Shares of World Wide Travel Service, Inc., valued at P200,00.00. WHEREAS, on October 8, 1958; Sp.

Proc. No. 5610 entitled "In the Testate Estate of the Late Honesta D. Kelly (Honesto D. Marcelo), Luisa Echaus, Petitioner" was filed by the THIRD PARTY with the Court of First Instance of Rizal at Pasig, Metro manila, in her capacity as Vice-President and most senior officer of the herein Second Party; WHEREAS, in the course of the said proceedings, several persons claiming to be heirs of the late Honesta D. Kelly intervened and/or entered their appearance, the said parties being, among others, ROBERT RAY HOLLINGSWORTH, ANTONIO ABAD SANTOS, ERLINDA CAPARAS, MILA G. BELLO, PRIMITIVO MARCELO (as alleged surviving husband of the deceased), DOMINGO and RAYMUNDO DATUIN (as alleged sister of the deceased); WHEREAS, the herein FIRST PARTY acquired the hereditary rights of the said Primitivo Marcelo, Domingo and Raymundo Datuin, and Margarita Datuin de Vera, which acquisition was duly approved by the Court in an Order dated June 20, 1974, thereby making the FIRST PARTY an intervenor in the proceedings; WHEREAS, an October 16, 1974, the Rizal CFI authorized the sale of the house and lot of the state located at Jacaranda Street, North Forbes, and on January 21, 1975, a Deed of Sale over the said house and lot, in favor of Enrique V. Razon, for the sum of P 700,000.00 was executed by the co-administrator, Atty. Olympio G. Bermudez, which was approved by the Rizal CFI on January 21, 1975 and was duly recorded with the Office of the Register of Deeds on January 22, 1975, culminating in the issuance by the Register of deeds of Transfer Certificate of Title No. 471773 over the said house and lot in the name of Enrique V. Razon; WHEREAS, the said amount of SEVEN HUNDRED THOUSAND PESOS (P700,000.00), Philippine Currency, was utilized by the co-administrator in paying off certain obligations of the estate, leaving a balance in the sum of THREE HUNDRED FOUR THOUSAND THREE HUNDRED THIRTY PESOS (P304,330.00) which is presently on deposit with the Philippine National Bank under Savings Account No. 240301; WHEREAS, the SECOND PARTY and the THIRD PARTY elevated to the Court of Appeals under an original Petition certiorari the said sale of the house and lot, docketed as CA-G.R. No. SP-03922, which, because of an adverse decision promulgated on April 29, 1975, was brought by the said parties to the Supreme Court under a Petition for Review on Certiorari, docketed as G.R. No. L-40904, where it was given due course and is presently under consideration by the Supreme Court.

WHEREAS, on May 13, 1975, the Rizal CFI approved a Project of Partition distributing the estate of Honesta D. Kelly; WHEREAS, the THIRD PARTY, on October 16, 1975, appealed to the Supreme Court under Petition for Review on certiorari the order approving the Partition, docketed as G.R. No. L-41247 which likewise was given due course and is pending consideration by the said court; WHEREAS, the herein parties, after several negotiations, have agreed to settle their respective claims and differences under and by virtue of this agreement; NOW, THEREFORE, for and in consideration of the premises and of the mutual covenants and stipulations hereinafter stated, the parties have agreed as follows: 1. The sum of THREE HUNDRED THOUSAND PESOS (P300,000.00) now deposited with the Philippine National Bank under Savings Account No. 240301 is hereby given, and delivered directly to the SECOND PARTY in the name and for the account of the said THIRD PARTY and of ANTONIO ABAD SANTOS and ERLINDA CAPARAS in equal shares, and the other parties, particularly the FIRST PARTY, hereby waives in favor of the THIRD and FOURTH PARTIES any and all rights whatsoever that they may have in and over the said amount provided, however, the said amount of P300,000.00 shall only be released to the SECOND PARTY upon: a) Approval by the Supreme court of this Compromise Agreement; b) Submission by THIRD and FOURTH PARTIES to the Testate Court and to the FIRST PARTY of the Cancellation and Release of Mortgage obligation of the Estate with the IATA annotated at the back of TCT No. 471773-Rizal, all at the expense and for the account of SECOND, THIRD and FOURTH PARTIES; c) Cancellation of the notice lis pendens now annotated at the back of said TCT No. 471773 of the Registry of Deeds for the Province of Rizal; and d) Ejectment of Mrs. Pacita delos Reyes-Philipps from the house at no.

1 Jacaranda St., Forbes Park, Makati, metro Manila, sold to the FIFTH PARTY and payment of her rentals as stipulated hereinafter; 2. All the parties in this compromise Agreement hereby agree to the adjudication and release to the FIRST PARTY of the sum of P265,000.00 which is now in the possession of the FIRST PARTY, and in turn the conditions set forth in paragraph 1 (a) to (d), to endorse in favor of the SECOND PARTY the shares of stocks owned by Honesta D. Kelly in other corporations as enumerated in her last will and testament and the shares of stocks of Honesta Kelly in the said SECOND PARTY, consisting of TWENTY THOUSAND (20,000) Shares wit a par value of P10.00 and valued at P200,000.00, and the respective Corporate Secretary of said corporations are hereby authorized and empowered to cause the cancellation of the said shares of stocks, and further waives in favor of said SECOND PARTY any and all rights whatsoever he may have in and over the said shares of stocks, and the said SECOND PARTY, hereby accepts the said shares of stocks, the same to be treated henceforth as treasury stocks, to be disposed of as its Board of Directors may deem fit and proper within the provisions of the law; 3.

The award by the Rizal CFI in Sp. Proc. No.

5610 of the residential lot in Tagaytay City covered by TCT No. 92834 in favor of the SECOND PARTY is hereby confirmed and ratified by the herein parties; 4. The furniture of the deceased adjudicated to Robert Ray Hollingsworth shall be returned to ROBERT RAY HOLLINGSWORTH as directed of the Administratrix Luisa Echaus by Order dated May 13, 1975 in Special Proc. No. 5610.

the parties agree that "furniture" as used in this Compromise Agreement includes all personal effects of the Late Honesta D. Kelly found in the house at 1 Jacaranda such as but not limited to furnishings, ornaments, electrical appliances, decorations, glasswares, chinawares, TV, radio-phono, chandeliers, and the like. The other parties hereby waive any and all rights whatsoever that they may have in and over the said "furniture".

5. The loss of a few items of the personal effects belonging to the Honesto d. Kelly as determined during the ocular inspection of the premises conducted by the respective lawyers of the parties hereto in the presence of Mrs. Pacita delos Reyes-Philips last October 1, 1977, as well as during the second ocular inspection of the premises last October 8, 1977, during which ocular inspection, they viewed all the pieces of furniture and personal effects inside the premises and compared the same with the inventory submitted to the Probate Court, are hereby condoned, allowed and/or accepted by all the parties, it being understood that, the said inventories were hurriedly prepared at the time.

6. Upon the remanding of the records to the Rizal CFI, after the Compromise Agreement has been approved by the Supreme Court, the parties hereto shall effect the issuance by the said Court of First Instance of Rizal under Special Proc, no. 5610 of the appropriate order that shall enable the parties to implement this agreement and the Project of partition of May 7, 1975 so far as not inconsistent with the terms of this Agreement, particularly the provisions thereof relating to ROBERT RAY HOLLINGSWORTH.

7. Immediately upon the approval by the Supreme Court of this Compromise Agreement the SECOND, THIRD AND FOURTH PARTIES obligate themselves to cause the immediate ejectment of the present tenants Mrs. Pacita delos Reyes-Philips, of the house and lot Jacaranda Street, Forbes Park, Makati, Metro Manila, to vacate the said premises and to deliver the physical possession of the said house and lot to the FIFTH PARTY, free of any lien and incumbrance whatsoever, and of any third-party occupant or tenant thereof, as well as deliver to the FIFTH PARTY, the payments of the monthly rentals of the said property in the sum of P1,500.00 a month corresponding to the period from July 1975 up to 31 December 1976 as full payment of the monthly rentals thereof, the same to be taken from the P300,000.00 awarded to the THIRD AND FOURTH PARTIES, upon receipt of which amount the FIFTH PARTY shall cause the dismissal of the ejectment suit he filed against Mrs. Pacita delos Reyes-Philips in the Municipal Court of Makati, Metro Manila.

All the parties hereto, particularly the SECOND and THIRD, covenant and confirm the sale of the aforesaid house and lot to the FIFTH PARTY and further waive in favor of the said FIFTH PARTY any and all rights and interests whatsoever they may have in and over the said property. 8. It is the essence of this Agreement that the parties hereto are mutually settling their respective claims and differences in the estate of the late Honesta D. Kelly and should the Supreme Court refuse to approve this Compromise Agreement, then this Agreement shall be considered as of no further force and effect; otherwise, this Agreement shall be in full force and effect, to be implemented by the parties hereto, and whoever shall violate the provisions hereof shall be liable to the innocent parties for damages and attorney's fees and cost of suit.

9.

All the parties hereby agree that whatever interest earned by the estate in the savings deposits with the Philippine National Bank under Account No. 240301, together with the sum of P4, 330.00 portion thereof, shall be paid to the co-administrator, Mr. Olympio G. Bermudez, as his co-administrator's fees in the proceedings. IN WITNESS WHEREOF, the parties hereto, duly assisted by their respective counsel, have hereunto set their hands on January 26, 1978 in the City of Manila, Philippines, and on January - , 1978 at Makati, Metro Manila, Philippines, respectively.ℒαwρhi৷ AUGUSTO DE LEON First Party TAN D4520-G1924-A7 WORLD WIDE TRAVEL SERVICE, INC. Second Party TAN W5430-H1468-A-6 By: LUISA ECHAUS Third Party TAN 1197-538-0 ANTONIO ABAD SANTOS Third Party Acting President TAN 1000-620-3 By: SALVADOR P. DE GUZMAN, JR.

Attorney-in-fact TAN D22577-M0627-A-1 ANTONIO ABAD SANTOS Fourth Party TAN 1000-620-3 ERLINDA CAPARAS Fourth Party TAN 3015-732-5 MILA G. BELLO Fourth Party TAN 1080-338-5 By: ENRIQUE V. RAZON Fifth Party TAN 1707-127-5 ERLINDA CAPARAS Attorney-in-fact TAN 3015-732-5 ROBERT RAY HOLLINGSWORTH Sixth Party WITNESSES: (ELIGIBLE)