009 People V Garcia

Commercial Law Review | Divina | 2nd Sem AY 2014-2015 |Page
PEOPLE OF THE PHILIPPINES,

plaintiff-appellee,
vs.
ENGR. CARLOS GARCIA y
PINEDA, PATRICIO BOTERO y
VALES, LUISA MIRAPLES (at
large), accused,
PATRICIO BOTERO y VALES,
accused-appellant.
April 18, 1997
Ponente: Puno, J.
Digest Maker: JM Arcilla
applicants as the vice president of Ricorn. When he was

receiving applicants, he was receiving them behind a desk
which has a nameplate representing his name and his
position as VP of Ricorn.
DOCTRINE:
Section 25 of the Corporation Code provides that
"(a)ll persons who assume to act as a corporation knowing
it to be without authority to do so shall be liable as general
partners for all the debts, liabilities and damages incurred
or arising as a result thereof: Provided, however, That when
any such ostensible corporation is sued on any transaction
entered by it as a corporation or on any tort committed by it
as such, it shall not be allowed to use as a defense its lack
of corporate personality."
FACTS:
SUMMARY:
Botero and the other accused were charged with illegal
recruitment. It was alleged that they represented
themselves as the incorporators and officers of Ricorn
Philippine International Shipping Lines, Inc.a supposed
recruitment agency for seamen, and Botero is the vicepresident. It was discovered that Ricorn was never
registered with the Securities and Exchange Commission
(SEC) and that it was never authorized to recruit by the
Philippine Overseas Employment Agency (POEA). Botero
and Garcia were convicted. Botero appealed, averring that
he was not an incorporator and that he was merely an
employee of Ricorn in charge of following up on their
documents. The SC upheld Boteros conviction. It was
proven by evidence that he was introduced to the
In 1993, Carlos Garcia, Patricio Botero, and Luisa Miraples

were accused of illegal recruitment. It was alleged that they
represented themselves as the incorporators and officers of
Ricorn Philippine International Shipping Lines, Inc.; that Ricorn is
a recruitment agency for seamen; that Garcia is the president,
Botero is the vice-president, and Miraples (now at large) is the
treasurer. It was later discovered that Ricorn was never
registered with the Securities and Exchange Commission (SEC)
and that it was never authorized to recruit by the Philippine
Overseas Employment Agency (POEA). Botero and Garcia were
convicted. Botero appealed.
In his defense, Botero averred that he was not an
incorporator; he insisted he was a mere applicant of Ricorn and
not a conspirator of the other accused who defrauded the
Commercial Law Review | Divina | 2nd Sem AY 2014-2015 |Page

complainants. He claims that even as a Ricorn employee, he
merely performed "minimal activities" like following-up
applicants' passports, seaman's book and SOLAS, and conducting
simple interviews. He denies he had a hand in the selection of
workers to be employed abroad.
ISSUES/HELD:
WON the conviction of Botero was correct. YES.
RATIO:
We reject appellant Botero's pretense that he is also a
victim rather than a culprit in this case. His submissions are at
war with the evidence on record. His co-accused Garcia
introduced him to the complainants as the vice-president of
Ricorn. He used a table with a nameplate confirming he was the
vice-president of Ricorn. He procured the passports, seaman's
books and SOLAS for the applicants. It was from him that the
complainants inquired about the status of their applications. He
also admitted he gave money to accused Garcia for Ricorn's
incorporation. Beyond any reasonable doubt, appellant Botero
engaged in recruitment and placement activities in that he,
through Ricorn, promised the complainants employment abroad.
For engaging in recruitment of workers without obtaining
the necessary license from the POEA, Boteros should suffer the
consequences of Ricorn's illegal act for according to the Labor
Code, "(i)f the offender is a corporation, partnership, association
or entity, the penalty shall be imposed upon the officer or officers
of the corporation, partnership, association or entity responsible
for violation; . . . "
The evidence shows that appellant Botero was one of the
incorporators of Ricorn. For reasons that cannot be discerned
from the records, Ricorn's incorporation was not consummated.
Even then, appellant cannot avoid his liabilities to the public as
an incorporator of Ricorn. He and his co-accused Garcia held
themselves out to the public as officers of Ricorn. They received
money from applicants who availed of their services. They are

thus estopped from claiming that they are not liable as corporate
officials of Ricorn.
Section 25 of the Corporation Code provides that "(a)ll
persons who assume to act as a corporation knowing it to be
without authority to do so shall be liable as general partners for
all the debts, liabilities and damages incurred or arising as a
result thereof: Provided, however, That when any such ostensible
corporation is sued on any transaction entered by it as a
corporation or on any tort committed by it as such, it shall not be
allowed to use as a defense its lack of corporate personality."

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Commercial Law Review | Divina | 2nd Sem AY 2014-2015 |Page

PEOPLE OF THE PHILIPPINES,

applicants as the vice president of Ricorn. When he was

In 1993, Carlos Garcia, Patricio Botero, and Luisa Miraples

Commercial Law Review | Divina | 2nd Sem AY 2014-2015 |Page

money from applicants who availed of their services. They are

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