Republic of the Philippines
SUPREME COURT
Manila
EN BANC
G.R. No. L-29967 March 27, 1929
JOSE GASTON, ET AL., plaintiffs-appellants,
vs.
THE TALISAY-SILAY MILLING CO., ET AL., defendants-appellants.
Lucio Lacson for plaintiffs-appellants.
Ricardo Nolan and Paredes, Buencamino & Yulo for defendants-appellants.
STATEMENT
Plaintiffs allege that they are all of legal age and residents of the Philippine Islands. That the defendant the Talisay-Silay Milling Company is a domestic corporation, with its principal office in the municipality of Talisay, Occidental Negros. That the defendant Pedro C. Hernaez is the president and agent of the "Asociacion de Agricultores de Talisay-Silay," an unincorporated, voluntary association existing under the laws of the Philippine Islands. That certain of the plaintiffs are planers whose properties are connected with, and attached to, the sugar central of the Milling Company by virtue of a contract, a copy of which is made a part of the complaint, marked Exhibit A. That other of the plaintiffs are also planters, but are not parties to the contract Exhibit A. It is then alleged that in the harvest of 1927-1928, the plaintiffs intended and still intend to use their rights to witness personally or through their agents, the weighing of their cane in the scales of the defendant central, for the purpose of testing the accuracy of the weights, for the reason that they did not have any confidence in the integrity of the persons charged with that duty or of the official watchers. That the Milling Company, conniving with the defendant Pedro C. Hernaez, without any legal right and for the sole purpose of injuring the plaintiffs, has prevented and still prevent plaintiffs or their agents from verifying the accuracy of the weights, and unless the court issue a writ of injunction, the defendants will continue to deprive plaintiffs of their rights. That by reason of the malicious conduct of the defendants, the plaintiffs have been damaged in the sum of P5,000, and they pray for judgment that they are entitled to witness personally, or through their agents, the weighing of their cane, and that the defendants be prohibited from denying the plaintiffs such rights, and for P5,000 as damages, and that a preliminary injunction be issued pending the suit.
For answer the defendants made a general and specific denial of all of the material allegations of the complaint, and as a first special defense, allege that they were not furnished with a copy of the bond, and that the verification is insufficient. As a second special defense, they allege that the first milling of sugar cane by the sugar central was the harvest of 1920-1921, which commenced about January 20, 1921. That on February 6, 1921, the owners or planters connected with the sugar central met, and to comply with the agreement with the planters, as defined in Exhibit A, they formed and organized an association, known as "Asociacion de Agricultores de Talisay y Silay," and at the same time appointed a committee of planters under the provisions of Exhibit A. That on August 7, 1921, the by-laws of this association were approved.
Articles 21 and 22 of the by-laws are as follows:
ART. 21. The committee shall represent each and every one of the partners in their relations with the Central and shall carry into effect all the resolutions adopted by the Board of Directors or by the members at a general meeting. This committee in short shall be the intermediary instrument of the association and of each and every one of the members in order to watch and look after its interests; it shall always act in accordance with a plan adopted by the Board of Directors and shall be responsible directly and solely to said Board of Directors.
ART. 22. The Committee shall report to the Board of Directors at its meeting the resolutions which it may adopt in the performance of its function.
That at a general meeting of July 8, 1922, the association adopted a resolution to the effect that the board of directors should act as a committee for the planters. That since the organization of the association down to date, all of the planters doing business with the Milling Company have been and are represented in all of their relations with the company, first, by the committee of planters, and then by the board of directors. That the defendant Pedro C. Hernaez is now the president of the association, and that all of the plaintiffs are members of the association. That from the first milling by the central to date, all sugar cane was weighed by persons appointed for that work, who are paid by the defendant company, in the presence of other persons appointed and paid by the association, for the purpose of weighing the cane, and those persons appointed by the association represent and have always represented all the planters who mill their cane in the central of the defendant company, who take exact note of the weighing of each wagon of cane, reporting the result to the association. That on March 18, 1924, the board of directors at a general meeting of the association appointed Alfonso Hilado as chemist to intervene and represent all of its members in everything connected with the milling of sugar cane, which appointment has from time to time been renewed. That pursuant to a resolution of the board of directors of the association, dated October 18, 1924, which is now in force, Alfonso Hilado, the chemist and intervener of the association, was authorized to appoint and did appoint the personnel which he needed for his office, and among them he appointed those who were to serve as persons in charge of the weighing in representation of the members of the association. That from the harvest of 1923-1924, at the instance of the chemist, the latter and the defendant company adopted a procedure for weighing the sugar cane in and by which it is difficult, if not impossible, for the weighers to know who is the owner of the cane which they weigh. That such procedure gave general satisfaction. That in the harvest of 1926-1927 some of the planters, claiming that they had no confidence in the weighers, asked for permission to appoint other persons paid by them, who knew how to weigh, which permission was at first denied, but later granted during that particular harvest, as to those planters who had appointed persons who knew how to weigh. That up to the present, none of the planters have ever reported that they had discovered any irregularity in the weighing of the cane.
That if the prayer of the plaintiffs is granted, it will result in the complete disorganization of the association, and will cause great damage to the Milling Company, and will impair the efficiency of the central, and will give rise to the fact of knowing the owner of the cane at the time it is weighed. That by reason of the issuance of the preliminary injunction, the defendants have been damaged in the sum of P4,000, and they pray for judgment that the preliminary injunction be dissolved; that the plaintiffs are bound by the resolutions of the "Asociacion de Agricultores de Talisay y Silay;" that the complaint be dismissed; and that the defendants have judgment against the plaintiffs jointly and severally for P4,000 as damages and costs.
As a result of the trial upon such issues, the lower court rendered judgment, of which the dispositive part is as follows:
Wherefore, judgment is rendered:
(a) Declaring the plaintiffs entitled to deliver their cane duly weighed to their agent, the "Asociacion de Agricultures de Talisay y Silay," and witness, therefore, the weighing thereof in the scales of the defendant central, either personally or through agents duly appointed by them;
(b) Ordering the defendants as the moment of weighing the sugar cane of the plaintiffs to permit the latter or their representatives to enter the department of the scales of the central, to witness and intervene in said weighing;
(c) Ordering the plaintiffs or their representatives during and at the time of the weighing of their cane, to avoid any trouble and unnecessary delay to the prejudice of the other agriculturists or of the central, and to leave the department of weighing as soon as their cane has been weighed;
(d) Maintaining and declaring the preliminary injunction issued herein final and absolute so far as in harmony with this decision;
(e) Dismissing the mutual claim of damages of both parties in this action; and
(f) No special pronouncement is made as to costs.
So ordered.
On appeal plaintiffs contend with the following legal propositions:
I. According to the language and the spirit of the milling contract attached to the complaint and made a part thereof, as annex A the plaintiffs have the undoubted right to intervene in the weighing of their cane on the premises of the central in the manner sought herein.
II. Neither the non-user at any time by the plaintiffs of the right claimed by them herein, nor their representation by and through the committee of planters at the scales of the central in some milling seasons, nor any of the by-laws or resolutions touching the matter (planter's representation by committee) passed by the majority of members of the defendant association, can be construed against the existence of such right or in any way impair it.
III. The power conferred expressly or impliedly by the plaintiffs upon the defendant association of planters to represent them at the central's scales during some of the past milling seasons is perfectly revocable at the plaintiffs' option, and without the consent of the defendant corporation.
IV. Moral and equitable considerations assert the plaintiffs' right to obtain the remedy sought.
V. None of the undesirable effects pointed out by the defendants would originate from granting the remedy sought, but positive legal and practical results would be attained thereby.
And the defendants assign the following errors:
I. The lower court erred in its appreciation of the real issue involved in the case.
II. The lower court erred in failing to take into account the provisions of paragraph 10 of the obligations of the planter in the contract Exhibit A.
III. The lower court erred in not holding that while the plaintiffs have the right to be represented at the weighing of their cane, they cannot, however, exercise their said right except in the manner expressly provided for in their contract with the central, Exhibit A (par. 10).
IV. The lower court erred in not holding that the representation conferred by the plaintiffs upon the Committee of Planters, pursuant to their contract with the central, is revocable only with the consent of the central.
V. The lower court erred in its appreciation of the relation between the plaintiffs and the Committee of Planters, and of the nature of the particular representation involved in the controversy.
IV. The lower court erred in rendering the judgment appealed from.
JOHNS, J.:
Plaintiffs cite and rely upon the ninth clause of the milling contract, which is as follows:
It shall install platform scales or other modern devices for weighing said sugar cane and shall cause it to be weighed therein with precision, issuing to the owner or owners thereof receipts for the weights in due form, said weighing shall always be done in a manner that would permit the said owner or owners or their present representatives when they wish to do so.
They contend that under the terms of this clause, they have the legal right to be present at the weighing of their cane either in person or by their agents, if they desire to do so.
After a person has tilled the soil, plant and harvest his crop and delivers it to the mill to be weighed, it is very natural that he would want to know what his harvest will be, and that he would have a keen and personal interest in the weight of his crop, and without even a contract, he would have the legal right to be personally present at the weighing of his crop, and to feel and be assured that it is correctly weighed, and that he receives a just return for the fruits of his labor.
The defendants concede that the plaintiffs have the legal right to be represented at the weighing of their cane, and then cite and rely on clause 10 of the milling contract, which is as follows:
That he shall appoint a committee or agents elected from the planters to fix and determine the extension of the lands which each planter must cultivate, take care of and inspect, and to watch the progress of each plantation and the means and manner of cultivation, in order that as far as possible there should never be lacking cane for the central to mill the 1,000 tons a day as agreed upon, during the minimum period of 120 days of milling each year. And that said committee or agents shall represent the plants in all such cases as maybe connected with the "Central" and in other cases to which reference is made in the obligations thereof.
It appears that under the terms of this clause, and to carry out the purpose and intent of the milling contract, an association was organized by the planters, known as "Asociacion de Agricultores de Talisay y Silay." That this association adopted by-laws of its own, pursuant to which a committee was appointed to supervise the planting and growing of the cane and the weighing of it, which in one form or another has been in existence since the construction of the mill and the signing of the milling contract by the planters in the years 1920 and 1921, and that by its terms, the contract of the planters with the milling company is for thirty years from the date of the signing. That this committee has supervised the weighing and control of the cane, and has devised ways and means so that the person who weighs the canes does not have any knowledge or information as to who may be its owner. That from about 1921 up to the times alleged in the complaint, this committee, pursuant to the by-laws of the association, had the control and supervision of the weighing of the cane without any complaint or criticism. That a valid contract had been and is now in force between the planters and the milling company as to the manner and method in which the cane should be weighed, and that the plaintiffs being parties to, and having adopted and approved, that contract and that method of weighing their cane, they are legally bound by it, and have no cause for complaint.
We realize that this is an important case not only to the planters, but to a milling company of sugar cane. Be that as it may, with or without a contract, the planter has the inherent right to be personally present at the weighing of his own cane, if he desires to do so. But in the exercise of that right, he must not in the least interfere with or delay the operation of the mill. That is to say, when the cane of any planter is delivered at the mill and is ready to be weighed, he has the legal right to be personally present at the weighing of his own cane.
As we analyze clauses 9 and 10 of the milling contract and what was done by the planters themselves, the legal effect of the appointment of the committee by the planters amounted to a selection by them of their legal representatives who have the right to act for and represent the planters in the weighing of the cane, in the absence of the planters in person. That is to say, if the planter does not desire to be present in person in the weighing of his cane, he is then represented by the committee appointed by the planters to supervise the weighing, and that committee has the power to act for, and represent, the planter, who is not personally present at the weighing of his own cane, and acts for, and represents the planter, and that he is bound by its acts. In other words, clauses 9 and 10 should be so construed as to limit the legal right of the planter to be personally present in the weighing of his own cane, and that otherwise he is bound by the acts of the committee. That having approved and selected that method of being represented in the weighing of the cane, which has been approved and adopted by the milling company, he has no legal right to select another or different person than the one whom he selected in the form and person of the committee.
The judgment of the lower court is modified, and in lieu thereof, one will be entered that each of the plaintiffs has a legal right to be personally present at the time of the weighing of his own cane, and that, if not personally present, they are bound by the acts of the committee, which has the legal right to represent them in the weighing of their cane in the event any planter is not personally present. That the plaintiffs have no legal right to be represented by any other or different person than the committee. Neither party to recover costs. So ordered.
Johnson, Street, Malcolm, Ostrand, Romualdez, and Villa-Real, JJ., concur.
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