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The Court of Appeals (CA) Special Sixth Division has upheld an earlier ruling of Quezon City Regional Trial Court (RTC) Branch 90 ordering the settlement by merits of the ownership dispute between cosmetic surgeon Vicky Belo and former live-in-partner Jose Santos concerning 24,998 shares in Forever Flawless and Body Center, Inc. (FFI).

In the 21-page decision, penned by Associate Justice Florito Macalino, the CA said it found out that Quezon City RTC 90 Presiding Judge Reynaldo Daway committed no grave abuse of discretion in dismissing the separate motions filed by Belo and Santos last May 29, 2009.

Quezon City RTC 90 junked Santos’ motion seeking the dismissal of the complaint for interpleader filed by FFI, seeking the resolution of the ownership dispute of the subject shares between Belo and Santos.

While Belo asked the trial court to immediately declare Santos in default and rule in favor of FFI because of the latter’s failure to answer within the required 15-day period the summons sent by the lower court.

She also asked the lower court, in the event Santos be named as the stocks’ sole owner, it be declared permitted to decline the request for inspection of Santos due to the fact that he has already set up the Obagi Skin Health, Inc., that operates the House of Obagi, which is a direct competitor of FFI.

Daway, in dismissing the two’s petition, said that the issue should be resolved on the merits.

In affirming Quezon City RTC 90’s earlier decision, the CA said it was proper for the lower court to deny Santos’ motion to dismiss since it was prohibited under the Intra-Corporate Rules.

“The grounds relied upon by Santos for the dismissal of the complaints below should have been states instead as defenses...,” it said.

While in Belo’s case, the CA noted that the cosmetic surgeon’s claims that Santos was 14 days late in filing his objections to the summons, which was finally served at his residence in Bulacan through his female caretaker, which her former live-in partner denied.

“It can be said that the female caretaker is of sufficient age but we not find her of sufficient discretion. There is no indication that she comprehended the weight of receiving the discovery devices or the importance of these documents, specially more so if it is considered that Santos claims that he did not receive these documents at his Bulacan address. Hence, we cannot start the counting of the reglementary period on Jan. 16, 2009,” it said.

Concurring with the ruling were Associate Justices Juan Enriquez, Jr. and Normandie Pizarro.

The case stemmed from the disputed ownership of 24,998 shares of stock of FFI which are registered in the name of Santos.

In a letter dated Nov. 6, 2007, Santos demanded from FFI that he be provided with copies of certain corporate books and records pursuant to his right under Section 74 of the Corporation Code and stated that he shall be inspecting the said documents.

Belo, however, informed FFI that she and her children are the true owners of the subject shares.

Since Belo and Santos both claim ownership of the subject shares, FFI filed a complaint for interpleader on May 21, 2008 before the Quezon City RTC 90. (PNA)

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