G.R. No. L-45306; April 12, 1939
JOSUE SONCUYA, plaintiff-appellant, vs. LA URBANA, Mutual Building and Loan Association, et al., defendants-appellees.

FACTS

Josue Soncuya filed a complaint alleging that he, Librada Avelino, and Carmen de Luna organized the “Centro Escolar de Señoritas,” a nonstock corporation. The urban properties in dispute were registered in the name of Librada Avelino as “Directress of the Centro Escolar de Señoritas.” Avelino mortgaged these properties to La Urbana. Soncuya claimed the mortgage was executed by Avelino without the corporation’s consent and for her own benefit. He sought to recover indemnity for payments made on the mortgage. The lower court sustained La Urbana’s demurrer to the complaint for failure to state a cause of action, granted Soncuya time to amend, which he refused, and subsequently dismissed the case.

ISSUE

Whether the trial court’s orders sustaining the demurrer and dismissing the case were in accordance with law, given the sufficiency of the allegations in the complaint.

RULING

Yes, the appealed orders are affirmed. The complaint failed to allege facts sufficient to constitute a cause of action. The mere registration of the properties in Avelino’s name as directress and the execution of the mortgage by her did not support the inference that the mortgage was unauthorized or for her personal benefit. Furthermore, any action to recover indemnity for mortgage payments belonged to the corporation, Centro Escolar de Señoritas, which has a personality distinct from Soncuya. Therefore, Soncuya had no legal standing to sue. The lower court correctly sustained the demurrer and, upon his refusal to amend, properly dismissed the case.

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