Elliott v. Pope

FIRST DIVISION

[G.R. No. 237474. April 23, 2018.]

MIKE ELLIOTT AND JODY ELLIOTT, petitioners,vs. ANDREW DAVID POPE, GORDON MARK STRAHAN AND ATLANTIS RESORT MANAGEMENT, INC., respondents.

NOTICE

Sirs/Mesdames :

Please take notice that the Court, First Division, issued a Resolution datedApril 23, 2018which reads as follows:

"G.R. No. 237474 — Mike Elliott and Jody Elliott vs. Andrew David Pope, Gordon Mark Strahan and Atlantis Resort Management, Inc.

After carefully reviewing the allegations, issues, and arguments adduced in the instant Petition for Review on Certiorari filed under Rule 45 of the Rules of Court, the Court resolves to DENY the same for the following reasons: (1) the Verification and Certificate of Non-Forum Shopping was signed by Atty. Ma. Carmencita C. Ambrosio without proof that petitioners authorized her to cause the preparation of the Petition and to sign said Verification and Certificate of Non-Forum Shopping for and on their behalf; and (2) failure of the petitioners to show any reversible error on the part of the Court of Appeals (CA) in holding that the court a quo did not commit grave abuse of discretion amounting to lack or excess of jurisdiction in denying petitioners' Motion to Dismiss.

Petitioners argue that they are not parties to the Definitive Memorandum of Agreement and, hence, they are not bound by the non-compete clause thereof. The court a quo, therefore, gravely abused its discretion when it denied their Motion to Dismiss respondents' Complaint for Breach of Contract with Damages, which is premised on petitioners' alleged violation of said non-compete clause.

We are not persuaded. Contracts take effect between the parties, their assigns, and heirs, except in cases where the rights and obligations arising from contracts are not transmissible by their nature, or by stipulation or by provision of law. This principle of relativity of contracts is embodied in Art. 1311 1 of the Civil Code of the Philippines.

In this case, Georg Bender and his company EGBEGEBI, Inc. entered into a Definitive Memorandum of Agreement with respondents wherein they bound themselves not to operate a hotel, dive shop or restaurant within 200 meters from the location of Atlantis Resort in Dauin, Negros Oriental. Subsequently, petitioners acquired from EGBEGEBI, Inc. a property located within 200 meters from Atlantis Resort and converted the same into a resort called Salaya Beach House. Being mere assignees who stepped into the shoes of EGBEGEBI, Inc., petitioners are necessarily bound by said non-competeclause. Hence, the CA did not err in holding that the court a quo did not commit grave abuse of discretion amounting to lack or excess of jurisdiction in denying petitioners' Motion to Dismiss respondents' Complaint for Breach of Contract with Damages.

ACCORDINGLY, the Court resolves to DENY the present Petition for Review on Certiorari and AFFIRM the August 23, 2017 Decision of the Court of Appeals in CA-G.R. SP No. 150151.

SO ORDERED." Sereno, C.J., on leave; De Castro, J., designated as Acting Chairperson per Special Order No. 2540 dated February 28, 2018.

Very truly yours,

(SGD.) LIBRADA C. BUENADeputy Division Clerk of Court

 

Footnotes

1. Art. 1311. Contracts take effect only between the parties, their assigns and heirs, except in cases where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation, or by provisions of law. The heir is not liable beyond the value of the property he received from the decedent. [Emphasis ours]