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The Philippine Football Federation contracted with International Express Travel and Tour Services to purchase airline tickets for athletes and officials. The Federation made partial payments but still owed P449,654.83. International Express sued Henri Kahn as president of the Federation for the unpaid balance. The Court of Appeals found for Henri Kahn, recognizing the Federation as a separate entity. However, the Supreme Court reversed, finding that the Federation was not a recognized national sports association and did not have corporate existence. As such, the officers are personally liable for the Federation's debts. The Regional Trial Court decision holding Henri Kahn liable was reinstated.

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Katrina Caladiao
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65 views2 pages

Task Performance

The Philippine Football Federation contracted with International Express Travel and Tour Services to purchase airline tickets for athletes and officials. The Federation made partial payments but still owed P449,654.83. International Express sued Henri Kahn as president of the Federation for the unpaid balance. The Court of Appeals found for Henri Kahn, recognizing the Federation as a separate entity. However, the Supreme Court reversed, finding that the Federation was not a recognized national sports association and did not have corporate existence. As such, the officers are personally liable for the Federation's debts. The Regional Trial Court decision holding Henri Kahn liable was reinstated.

Uploaded by

Katrina Caladiao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Caladiao, Katrina Z.

BSA301

Facts
On June 30 1989, petitioner International Express Travel and Tour Services, Inc., through its
managing director, wrote a letter to the Philippine Football Federation (Federation), through its
president private respondent Henri Kahn, wherein the former offered its services as a travel
agency to the latter.1 The offer was accepted.
Petitioner secured the airline tickets for the trips of the athletes and officials of the Federation to
the South East Asian Games in Kuala Lumpur as well as various other trips to the People's
Republic of China and Brisbane. The total cost of the tickets amounted to P449,654.83. For the
tickets received, the Federation made two partial payments, both in September of 1989, in the
total amount of P176,467.50.2

Issue
This prompted petitioner to file a civil case before the Regional Trial Court of Manila. Petitioner
sued Henri Kahn in his personal capacity and as President of the Federation and impleaded the
Federation as an alternative defendant. Petitioner sought to hold Henri Kahn liable for the unpaid
balance for the tickets purchased by the Federation on the ground that Henri Kahn allegedly
guaranteed the said obligation.
Defendant Henri Kahn would have been correct in his contentions had it been duly established
that defendant Federation is a corporation. The trouble, however, is that neither the plaintiff nor
the defendant Henri Kahn has adduced any evidence proving the corporate existence of the
defendant Federation.
A voluntary unincorporated association, like defendant Federation has no power to enter into, or
to ratify, a contract. The contract entered into by its officers or agents on behalf of such
association is not binding on, or enforceable against it. The officers or agents are themselves
personally liable.
In finding for Henri Kahn, the Court of Appeals recognized the juridical existence of the
Federation. It rationalized that since petitioner failed to prove that Henri Kahn guaranteed the
obligation of the Federation, he should not be held liable for the same as said entity has a
separate and distinct personality from its officers.
Clearly the above cited provisions require that before an entity may be considered as a national
sports association, such entity must be recognized by the accrediting organization, the Philippine
Amateur Athletic Federation under R.A. 3135, and the Department of Youth and Sports
Development under P.D. 604. This fact of recognition, however, Henri Kahn failed to
substantiate. In attempting to prove the juridical existence of the Federation, Henri Kahn
attached to his motion for reconsideration before the trial court a copy of the constitution and by-
laws of the Philippine Football Federation. Unfortunately, the same does not prove that said
Federation has indeed been recognized and accredited by either the Philippine Amateur Athletic
Federation or the Department of Youth and Sports Development. Accordingly, we rule that the
Philippine Football Federation is not a national sports association within the purview of the
aforementioned laws and does not have corporate existence of its own.

Ruling
WHEREFORE, the decision appealed from is REVERSED and SET ASIDE. The decision of the
Regional Trial Court of Manila, Branch 35, in Civil Case No. 90-53595 is hereby
REINSTATED.
SO ORDERED.

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