36. nicolas v CA.docx

NICOLAS vs. Ca and BUAN G.R. No. 122857 March 27, 1998

FACTS: FACTS: Nicolas and Buan entered into a Portfolio Management Agreement, wherein the former was to manage the stock transactions of the latter for a period of three months with an automatic renewal clause !owe"er, upon the initiati"e of the pri"ate Buan the agreement was terminated, and thereafter he re#uested for an accounting of all transactions made $% the petitioner & weeks after the termination of the agreement, Nicolas demanded from Buan an amount representing his alleged management fees as pro"ided for in the Portfolio Management Agreement But the demands went unheeded, much to the chagrin of the petitioner 'e$uffed, 'e$uffed, petitioner filed a complaint or collection of sum of mone% against the pri"ate respondent $efore the trial court (n his answer, Buan contended that petitioner mismanaged his transactions resulting in losses, thus, he was not entitled to an% management fees After hearing, the trial court rendered its decision in fa"or of Nicolas, ordering Buan to pa% pa % him for the management fees, attorne%)s fees and e*penses of litigation Buan appealed the decision to the CA Finding merit in his case, the appellate court re"ersed the trial court)s finding finding and ruled against Nicolas Petitioner)s M' was denied $% the same court (SS+: -.N the CA committed re"ersi$le error in o"erturning the decision of the 'TC 'TC !/0: the assailed decision of the CA is AFF('M0  N.1 To $egin with, petitioner has the $urden to pro"e that the transaction reali2ed gains or  profits to entitle him to said management fees, as pro"ided in the Agreement: *** For his ser"ices, the (N3ST.' agrees to pa% the P.'TF./(. MANA4' 567 of all a ll reali2ed profits e"er% end of o f the month *** Accordingl%, Accordingl%, petitioner su$mitted the profit and loss statements for the co"ered, showing a total profit p rofit of P&89,&9&8, of which 567 would represent his management fees amounting to P;,5;&ser"ing statements (n fact, it did not e"en state when the stocks were purchased, the t%pe of stocks $ought, when the stocks were sold, etc The statements simpl% ta$ulate the num$er of shares ac#u ired from each compan%, a column for profit and the last column for loss The statements were not ?e"en@ authenticated $% an auditor, nor $% the person who caused the preparation of the same (n short, no e"identiar% "alue can $e attri$uted to the profit and loss statements su$mitted $% the  petitioner These documents can hardl% $e considered a credi$le or true reflection of the transactions -e -e find that petitioner has not n ot pro"en the amounts indicated ade#uatel% /astl%, the futilit% of petitioner)s action $ecame more pronounced $% the fact that he traded securities for the account of others without the necessar% license from the SC Clearl%, such omission was in

"iolation of Section 9 of the 'e"ised Securities Act which pro"ides that no $roker shall sell an% securities unless he is registered with the SC Stock market trading, a technical and highl% speciali2ed institution in the Philippines, must $een trusted to indi"iduals with pro"en integrit%, competence and knowledge, who ha"e due regard to the re#uirements of the law  N.TS: 9 Admittedl%, like an% ser"ices rendered or performed, stock $rokers are entitled to commercial fees or compensation pursuant to the 'e"ised Securities Act 'ule 9>9&, which reads: 'SA 'ule 9>9& Charges for Ser"ices Performed Charges $% $rokers or dealers, if an%, for ser"ice performed, including miscellaneous ser"ices such as collection of monies du e for  principal, di"idends, interests, e*change or transfer of securities, appeals, safekeeping or custod% of securities, and other ser"ices, shall $e reasona$le and not unfairl% discriminator% $etween customers Moreo"er, the same law pro"ides that an% fee or commission must $e with due regard to rele"ant circumstances

THIRD DIVISION

[G.R. No. 122857. March 27, 1998] ROY NICOLAS,  petitioner, vs . TH HONORA!L CO"RT O# A$$ALS %S&'(h D&)&*&o+ a+- !LSILO #.!. !"AN, respondents. DCISION ROMRO, J . Th/ &**0/ &+ (h&* /(&(&o+ &* h/(h/r (h/ Co0r( o3 A/a4* co&((/- r/)/r*&64/ /rror &+ &(* -/c&*&o+ &[1] -a(/- A00*( 1, 1995 o)/r(0r+&+ (h/ -/c&*&o+ &&[2] -a(/- Ma :1, 199: o3  (h/ R/&o+a4 Tr&a4 Co0r( o3 $a*&, !ra+ch 15, 6 or-/r&+ (h/ -&*&**a4 o3 /(&(&o+/r* co4a&+( aa&+*( r&)a(/ r/*o+-/+( 3or 4ac; o3 /r&(. O+ #/6r0ar 19, 1987, /(&(&o+/r Ro N&co4a* a+- r&)a(/ r/*o+-/+( !4/*&(o !0a+ /+(/r/- &+(o a $or(3o4&o Ma+a//+( Ar///+(, &&&[:] h/r/&+ (h/ 3or/r a* (o a+a/ (h/ *(oc; (ra+*ac(&o+* o3 (h/ 4a((/r 3or a /r&o- o3 (hr// o+(h* &(h a+ a0(oa(&c r/+/a4 c4a0*/. Ho/)/r, 0o+ (h/ &+&(&a(&)/ o3 (h/ r&)a(/ r/*o+-/+( (h/ ar///+( a* (/r&+a(/- o+ A00*( 19, 1987, a+- (h/r/a3(/r h/ r/, =04 :1 a+- A00*( 19, 1987 a* ro)&-/- 3or &+ (h/ $or(3o4&o Ma+a//+( Ar///+(. !0( (h/ -/a+-* /+( 0+h//-/-, 0ch (o (h/ char&+ o3 (h/ /(&(&o+/r. R/6033/-, /(&(&o+/r 3&4/- a co4a&+( &)[?] 3or co44/c(&o+ o3 *0 o3 o+/ aa&+*( (h/ r&)a(/ r/*o+-/+( 6/3or/ (h/ (r&a4 co0r(. I+ h&* a+*/r, )[5] r&)a(/ r/*o+-/+( co+(/+-/- (ha( /(&(&o+/r &*a+a/- h&* (ra+*ac(&o+* r/*04(&+ &+ 4o**/*, (h0*, h/ a* +o( /+(&(4/- (o a+ a+a//+( 3//*.  A3(/r h/ar&+, (h/ (r&a4 co0r( r/+-/r/- &(* -/c&*&o+ &+ 3a)or o3 4a&+(&33, h/r/&+ /(&(&o+/r, (h0* I+ V&/ O3 A44 Th/ #or/o&+, @0-/+( &* h/r/6 r/+-/r/- or-/r&+ (h/ -/3/+-a+( (o a 4a&+(&33 a* 3o44o* 1.Th/ ao0+( o3 $8,2:.7 3or (h/ a+a//+( 3//* o3 4a&+(&33. 2. Th/ ao0+( o3 $8,>>>.>> a* a+- 3or a((or+/* 3//* a+- /'/+*/* o3 4&(&a(&o+. :. Co*(* o3 *0&(. SO ORDRD. D&*a/-, r&)a(/ r/*o+-/+( a/a4/- (h/ -/c&*&o+ (o (h/ Co0r( o3 A/a4*. #&+-&+ /r&( &+ h&* ca*/, (h/ a/44a(/ co0r( r/)/r*/- (h/ (r&a4 co0r(* 3&+-&+ a+- r04/- aa&+*( (h/ /(&(&o+/r, (o &( HR#OR, (h/ a/a4/- -/c&*&o+ *ho04- 6/, a* &( &* h/r/6 RVRSD a+- ST ASID, a+- a* a co+*/.>> 7>,??>.>> $ ?8,12>.>> 5,>>> GLO 189,1:1.25 2>2,>.>2 %1:,?7?.77  BBBBBBBBBBBBBB N/( $ro3&( $ :?,?5.2:  ' .2  BBBBBBBBBBBBBB  $ ,929.>5 '&&[12] I+ accor-&+ +o ro6a(&)/ )a40/ (o (h/*/ -oc0/+(*, (h/ Co0r( o3 A/a4* -/c4ar/- (ha( 'h&6&(* C, D a+-  4&;/&*/ ca++o( 6/ r/4&/- 0o+ (o ro)/ (ha( ro3&(* /r/ &+-//- r/a4&/-. A( o*(, (h/*/ ar/ */43B*/r)&+ /)&-/+c/ h&ch -o +o( carr 0ch /&h(. Th/r/ &* +o 8 SCRA 589. Th/ *(a(//+(*, co)/r&+ (h/ o+(h* o3 =0+/, =04 a+- 0 (o 19 A00*( 1987, *&4 (a604a(/ (h/ +06/r o3 *har/* ac SCRA :?8 %1995F !a4&a Tra+*&( I+c. v . Co0r( o3  A/a4*, 25 SCRA 7? %199. xix[19] A6aa+&,

Co/+(ar&/* a+- =0r&*r0-/+c/ o+ (h/ Co/rc&a4 La* o3 (h/ $h&4&&+/*, 198? -&(&o+F S/c0r&(&/* a+- 'cha+/ Co&**&o+ v . Co0r( o3 A/a4*, 2? SCRA 7:8 %1995F Mar(&+, Co/+(ar&/* a+- =0r&*r0-/+c/ o+ $h&4&&+/ Co/rc&a4 La*, Vo4. ?, 198. xx[2>] 12 C.=.S. S/c. 7.