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G.R. No. 167552 (04TP)

Eurotech sued Edwin and Erwin Cuizon for failing to pay debts owed. Edwin claimed he was only an agent for Impact Systems and not personally liable. The court ruled that as an agent, Edwin did not acquire any rights or incur liabilities from signing the deed of assignment. An agent is not personally liable unless they expressly bind themselves or exceed their authority. The court found Edwin acted within his authority as an agent and was not a real party that should be sued.

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Kathleen Diosan
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57 views1 page

G.R. No. 167552 (04TP)

Eurotech sued Edwin and Erwin Cuizon for failing to pay debts owed. Edwin claimed he was only an agent for Impact Systems and not personally liable. The court ruled that as an agent, Edwin did not acquire any rights or incur liabilities from signing the deed of assignment. An agent is not personally liable unless they expressly bind themselves or exceed their authority. The court found Edwin acted within his authority as an agent and was not a real party that should be sued.

Uploaded by

Kathleen Diosan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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[G.R. NO.

167552, April 23, 2007]

EUROTECH INDUSTRIAL TECHNOLOGIES, INC., petitioner, vs. EDWIN CUIZON and


ERWIN CUIZON, respondents.

FACTS:

Eurotech is a company specializing in the importing and distribution of European industrial


equipment. Impact Systems Sales, a sole proprietorship founded by Erwin Cuizon, is one of its
customers. Eurotech allegedly sold P91,338.00 worth of products to Impact Systems. Cuizons
wanted to buy a sludge pump from Eurotech for P250,000.00, with a down payment of
P50,000.00. When the sludge pump came from the United Kingdom, Eurotech refused to transfer
it to Cuizons until their debts to Eurotech were paid in full. As a result, Edwin Cuizon and Alberto
de Jesus, Eurotech's general manager, signed a Deed of Assignment of Receivables in
Eurotech's favor. Despite the availability of the Deed of Assignment, Cuizons went ahead and
collected P365,135.29 from Toledo Power Company. Eurotech put many demands on Cuizons in
order for them to pay their debts. Cuizons was able to make partial payments to Eurotech as a
result. Cuizons' entire commitments, excluding interest and attorney's costs, was P295,000.00.
Edwin Cuizon claims that he is not a real party in this case. He claimed that in his transaction with
Eurotech, he was operating as a simple agent for his principal, Impact Systems, and that the latter
was well aware of this.

ISSUE:

Whether or not Edwin exceeded his authority when he signed the Deed of Assignment
thereby binding himself personally to pay the obligations to Eurotech.

RULING:

Edwin acted within his authority as an agent, who did not acquire any right nor incur any
liability arising from the Deed of Assignment, it follows that he is not a real party in interest who
should be impleaded in this case. A real party in interest is one who "stands to be benefited or
injured by the judgment in the suit, or the party entitled to the avails of the suit. Article 1897
provides that the agent who acts as such is not personally liable to the party with whom he
contracts, unless he expressly binds himself or exceeds the limits of his authority without giving
such party sufficient notice of his powers.

Therefore, the present petition is denied and the Decision dated 10 August 2004 and
Resolution dated 17 March 2005 of the Court of Appeals in CA-G.R. SP No. 71397, affirming the
Order dated 29 January 2002 of the Regional Trial Court, Branch 8, Cebu City, is affirmed.

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