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OPIC: Creation by operation of law INTERNATIONAL EXPRESS TRAVEL & TOUR SERVICES, INC., petitioner, vs. HON.

COURT OF APPEALS, HENRI KAHN, PHILIPPINE FOOTBALL FEDERATION, respondents. G.R. No. 119002. October 19, 2000

FACTS:

Petitioner Travel & Tour Services offered its service as a travel agency to the Philippine Football Federation, through its President Henri Kahn which offer was accepted by the latter. Petitioner then secured the tickets for the trip of the athletes and official of the Federation to the South East Asian Games in Kaula Lumpur. The total cost of the tickets amounted to P 449,654.83. The Federation made two payments. Thereafter, no further payments were made despite repeated demands. Thus, a civil case was filed against Henri Kahn and impleaded the Federation as an alternative defendant. The Trial Court of Manila (RTC) rendered judgment in favor of the Petitioner and declared Kahn personally liable. According to the Trial Court, a voluntary unincorporated association like the defendant federation has no power to enter into, ratify, a contract. Thus, the contract entered into by its officers/agents is not binding on, or enforceable against it (Federation). On Appeal, the Court of Appeal reversed and set aside the decision of the Trial Court. It opined that Kahn cannot be personally held liable for the federation has a juridical existence separate and distinct from its officer. The Federation came into existence upon the passage of R.A. 3135 or P.D. 604 creating Philippine Football Federation. Hence ,this Petition.

ISSUE:

Whether or not Philippine Football Federation has acquired a juridical personality as corporation by the passage of R.A. 3135?

RULING:

The Philippine Football Federation has not acquired a juridical personality as corporation. R.A 3135 or P.D.604 merely recognized only the juridical existence of National Sports Association.

However, it does not automatically take place by mere passage of the aforesaid law. It is a basic postulate that before a corporation may acquire juridical personality, the state must give its consent either in the form of special law or general enabling act. Nowhere can be found in the aforesaid law the creation of Philippine Football Federation. It only provides the manner by which these entities may acquire juridical personality. Thus, Philippine Football Federation is not a national sports association within the purview of the R.A. 3135 and does not have corporate existence of its own. WHEREFORE, the decision appealed from is reversed and set aside. The decision of RTC Manila is hereby reinstated.

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