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    [G.R. No. L-23145. November 29, 1968.]

    TESTATE ESTATE OF IONA! SLAE "ER#INS,

    $e%e&'e$. RENATO . TA(AG, &)%*++&r &$m*)*'r&or-

    &e++ee, v. /ENG0ET ONSOLIATE, IN., Oppositor-

    Appellant.

    *r*+o F. A'er*++o, r., or &)%*++&r &$m*)*'r&or-

    &e++ee.

    Ro'', S&+%e$o, e+ Ro'&r*o, /*o *'& or Oppositor-

    Appellant.

    S(LLA/0S

    1. REMEDIAL LAW; SPECIAL PROCEEDINGS; SETTLEMENT OF

    ESTATE; WHEN ANCILLARY ADMINISTRATION IS PROPER.

    The ancillar a!"ini#$ra$i%n i# &r%&er' (hene)er a &er#%n

    !ie#' lea)in* in a c%+n$r %$her $han $ha$ %, hi# la#$ !%"icile'

    &r%&er$ $% -e a!"ini#$ere! in $he na$+re %, a##e$# %, $he

    !ecea#e! lia-le ,%r hi# in!i)i!+al !e-$# %r $% -e !i#$ri-+$e!

    a"%n* hi# heir# /%hanne# ). Har)e' 0 Phil. 1234. Ancillar

    a!"ini#$ra$i%n i# nece##ar %r $he rea#%n ,%r #+ch

    a!"ini#$ra$i%n i# -eca+#e a *ran$ %, a!"ini#$ra$i%n !%e# n%$

    e5 &r%&ri% )i*%re ha)e an e6ec$ -e%n! $he li"i$# %, $he

    c%+n$r in (hich i$ i# *ran$e!. Hence' an a!"ini#$ra$%r

    a&&%in$e! in a ,%rei*n #$a$e ha# n% a+$h%ri$ in $he

    Phili&&ine#.

    7. ID.; ID.; ID.; SCOPE OF POWER AND A8THORITY OF AN

    ANCILLARY ADMINISTRATOR. N% %ne c%+l! !i#&+$e $he

    &%(er %, an ancillar a!"ini#$ra$%r $% *ain c%n$r%l an!

    &%##e##i%n %, all a##e$# %, $he !ece!en$ (i$hin $he 9+ri#!ic$i%n

    %, $he Phili&&ine#. S+ch a &%(er i# inheren$ in hi# !+$ $%

    #e$$le her e#$a$e an! #a$i#, $he clai"# %, l%cal cre!i$%r# R+le

    :0' Sec. ' R+le# %, C%+r$. C, Pa)ia ). De la R%#a' : Phil. 2;

    Li(ana* ). Ree#' L0; I*naci% ). Elchic%'

    L2; e$c.4. I$ i# a *eneral r+le +ni)er#all

    rec%*ni?e! $ha$ a!"ini#$ra$i%n' (he$her &rinci&al %r ancillar'

    cer$ainl e5$en!# $% $he a##e$# %, a !ece!en$ ,%+n! (i$hin $he

    #$a$e %r c%+n$r (here i$ (a# *ran$e!' $he c%r%llar -ein*

    @$ha$ an a!"ini#$ra$%r a&&%in$e! in %ne #$a$e %r c%+n$r ha#

    n% &%(er %)er &r%&er$ in an%$her #$a$e %r c%[email protected] Le%n an!

    Ghe??i ). Man+,ac$+rer# Li,e In#. C%.' = Phil. 03=4.

    . ID.; ID.; ID.; ID.; CASE AT AR. Since' in $he ca#e a$ -ar'

    $here i# a re,+#al' &er#i#$en$l a!here! $% - $he !%"iciliar

    a!"ini#$ra$%r in Ne( Y%rB' $% !eli)er $he #hare# %, #$%cB# %,

    a&&ellan$ c%r&%ra$i%n %(ne! - $he !ece!en$ $% $he ancillar

    a!"ini#$ra$%r in $he Phili&&ine#' $here (a# n%$hin*

    +nrea#%na-le %r ar-i$rar in c%n#i!erin* $he" a# l%#$ an!

    re+irin* $he a&&ellan$ $% i##+e ne( cer$ica$e# in lie+ $here%,

    There-' $he $a#B inc+"-en$ +n!er $he la( %n $he ancillar

    a!"ini#$ra$%r c%+l! -e !i#char*e! an! hi# re#&%n#i-ili$,+llle!. An %$her )ie( (%+l! re#+l$ in $he c%"&liance $% a

    )ali! 9+!icial %r!er -ein* "a!e $% !e&en! %n $he +nc%n$r%lle!

    !i#cre$i%n %, a &ar$ %r en$i$

    0. CORPORATION LAW; CORPORATIONS; CONCEPT AND

    NAT8RE. A c%r&%ra$i%n i# an ar$icial -ein* crea$e! -

    %&era$i%n %, la( Sec. 7' Ac$ N%. 103=4. A c%r&%ra$i%n a#

    Bn%(n $% Phili&&ine 9+ri#&r+!ence i# a crea$+re (i$h%+$ an

    e5i#$ence +n$il i$ ha# recei)e! $he i"&ri"a$+r %, $he #$a$e

    ac$in* acc%r!in* $% la(. I$ i# l%*icall inc%ncei)a-le $here,%re$ha$ i$ (ill ha)e ri*h$# an! &ri)ile*e# %, a hi*her &ri%ri$ $han

    $ha$ %, i$# crea$%r. M%re $han $ha$' i$ cann%$ le*i$i"a$el re,+#e

    $% iel! %-e!ience $% ac$# %, i$# #$a$e %r*an#' cer$ainl n%$

    e5cl+!in* $he 9+!iciar' (hene)er calle! +&%n $% !% #%. A

    c%r&%ra$i%n i# n%$ in ,ac$ an! in reali$ a &er#%n' -+$ $he la(

    $rea$# i$ a# $h%+*h i$ (ere a &er#%n - &r%ce## %, c$i%n' %r -

    re*ar!in* i$ a# an ar$icial &er#%n !i#$inc$ an! #e&ara$e ,r%"

    i$# in!i)i!+al #$%cBh%l!er# 1 Fle$cher' Ccl%&e!ia

    C%r&%ra$i%n#' &&. 1=

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    in her na"e in $he -%%B# %, $he en*+e$ C%n#%li!a$e!' Inc.'

    74 %r!er# #ai! cer$ica$e# cancelle!' an! 4 !irec$# #ai!

    c%r&%ra$i%n $% i##+e ne( cer$ica$e# in lie+ $here%,' $he #a"e

    $% -e !eli)ere! - #ai! c%r&%ra$i%n $% ei$her $he inc+"-en$

    ancillar a!"ini#$ra$%r %r $% $he Pr%-a$e Di)i#i%n %, $hi#

    C%[email protected] 1

    Fr%" #+ch an %r!er' an a&&eal (a# $aBen $% $hi# C%+r$ n%$ -$he !%"iciliar a!"ini#$ra$%r' $he C%+n$ Tr+#$ C%"&an %,

    Ne( Y%rB' -+$ - $he Phili&&ine c%r&%ra$i%n' $he en*+e$

    C%n#%li!a$e!' Inc. The a&&eal cann%$ &%##i-l &r%#&er. The

    %r!er challen*e! re&re#en$# a re#&%n#e an! e5&re##e# a

    &%lic' $% &ara&hra#e FranB,+r$er' ari#in* %+$ %, a #&ecic

    &r%-le"' a!!re##e! $% $he a$$ain"en$ %, #&ecic en!# - $he

    +#e %, #&ecic re"e!ie#' (i$h ,+ll an! a"&le #+&&%r$ ,r%"

    le*al !%c$rine# %, (ei*h$ an! #i*nicance.

    The ,ac$# (ill e5&lain (h. A# #e$ ,%r$h in $he -rie, %, a&&ellan$en*+e$ C%n#%li!a$e!' Inc.' I!%nah Sla!e PerBin#' (h% !ie! %n

    March 72' 1=> in Ne( Y%rB Ci$' le,$ a"%n* %$her#' $(% #$%cB

    cer$ica$e# c%)erin* '7 #hare# %, a&&ellan$' $he

    cer$ica$e# -ein* in $he &%##e##i%n %, $he C%+n$ Tr+#$

    C%"&an %, Ne( Y%rB' (hich a# n%$e!' i# $he !%"iciliar

    a!"ini#$ra$%r %, $he e#$a$e %, $he !ecea#e! 7 Then ca"e $hi#

    &%r$i%n %, $he a&&ellan$# -rie, @On A+*+#$ 17' 1=>' Pr%#&er%

    Sani!a! in#$i$+$e! ancillar a!"ini#$ra$i%n &r%cee!in*# in $he

    C%+r$ %, Fir#$ In#$ance %, Manila; La?ar% A. Mar+e? (a#

    a&&%in$e! ancillar a!"ini#$ra$%r; an! %n /an+ar 77' 1=>'

    he (a# #+-#$i$+$e! - $he a&&ellee Rena$% D. Taa*. A !i#&+$e

    ar%#e -e$(een $he !%"iciliar a!"ini#$ra$%r in Ne( Y%rB an!

    $he ancillar a!"ini#$ra$%r in $he Phili&&ine# a# $% (hich %,

    $he" (a# en$i$le! $% $he &%##e##i%n %, $he #$%cB cer$ica$e# in

    +e#$i%n. On /an+ar 72' 1=>0' $he C%+r$ %, Fir#$ In#$ance %,

    Manila %r!ere! $he !%"iciliar a!"ini#$ra$%r' C%+n$ Tr+#$

    C%"&an' $% &r%!+ce an! !e&%#i$ $he" (i$h $he ancillar

    a!"ini#$ra$%r %r (i$h $he ClerB %, C%+r$. The !%"iciliar

    a!"ini#$ra$%r !i! n%$ c%"&l (i$h $he %r!er' an! %n Fe-r+ar

    11' 1=>0' $he ancillar a!"ini#$ra$%r &e$i$i%ne! $he c%+r$ $%

    @i##+e an %r!er !eclarin* $he cer$ica$e %r cer$ica$e# %,

    #$%cB# c%)erin* $he '7 #hare# i##+e! in $he na"e %,

    I!%nah Sla!e PerBin# - en*+e$ C%n#%li!a$e!' Inc. -e

    !eclare! %r c%n#i!ere! a# l%#[email protected]

    I$ i# $% -e n%$e! ,+r$her $ha$ a&&ellan$ en*+e$ C%n#%li!a$e!'

    Inc. a!"i$# $ha$ @i$ i# i""[email protected] a# ,ar a# i$ i# c%ncerne! a#

    $% @(h% i# en$i$le! $% $he &%##e##i%n %, $he #$%cB cer$ica$e#

    in +e#$i%n; a&&ellan$ %&&%#e! $he &e$i$i%n %, $he ancillar

    a!"ini#$ra$%r -eca+#e $he #ai! #$%cB cer$ica$e# are in

    e5i#$ence' $he are $%!a in $he &%##e##i%n %, $he !%"iciliar

    a!"ini#$ra$%r' $he C%+n$ Tr+#$ C%"&an' in Ne( Y%rB

    8.S.A.. . . [email protected] 0

    I$ i# i$# )ie(' $here,%re' $ha$ +n!er $he circ+"#$ance#' $he

    #$%cB cer$ica$e# cann%$ -e !eclare! %r c%n#i!ere! a# l%#$

    M%re%)er' i$ (%+l! alle*e $ha$ $here (a# a ,ail+re $% %-#er)e

    cer$ain re+ire"en$# %, i$# -

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    &%(er %, $he a&&ellee ancillar a!"ini#$ra$%r $% *ain c%n$r%l

    an! &%##e##i%n %, all a##e$# %, $he !ece!en$ (i$hin $he

    9+ri#!ic$i%n %, $he Phili&&ine#. N%r c%+l! i$. S+ch a &%(er i#

    inheren$ in hi# !+$ $% #e$$le her e#$a$e an! #a$i#, $he clai"#

    %, l%cal cre!i$%r#. 3 A# /+#$ice T+a#%n #&eaBin* ,%r $hi# C%+r$

    "a!e clear' i$ i# a @*eneral r+le +ni)er#all rec%*[email protected] $ha$

    a!"ini#$ra$i%n' (he$her &rinci&al %r ancillar' cer$ainl

    @e5$en!# $% $he a##e$# %, a !ece!en$ ,%+n! (i$hin $he #$a$e %rc%+n$r (here i$ (a# *ran$e!'@ $he c%r%llar -ein* @$ha$ an

    a!"ini#$ra$%r a&&%in$e! in %ne #$a$e %r c%+n$r ha# n% &%(er

    %)er &r%&er$ in an%$her #$a$e %r c%[email protected] >

    I$ i# $% -e n%$e! $ha$ $he #c%&e %, $he &%(er %, $he ancillar

    a!"ini#$ra$%r (a#' in an earlier ca#e' #e$ ,%r$h - /+#$ice

    Malc%l". Th+# @I$ i# %,$en nece##ar $% ha)e "%re $han %ne

    a!"ini#$ra$i%n %, an e#$a$e. When a &er#%n !ie# in$e#$a$e

    %(nin* &r%&er$ in $he c%+n$r %, hi# !%"icile a# (ell a# in a

    ,%rei*n c%+n$r' a!"ini#$ra$i%n i# ha! in -%$h c%+n$rie#. Tha$(hich i# *ran$e! in $he 9+ri#!ic$i%n %, !ece!en$# la#$ !%"icile

    i# $er"e! $he &rinci&al a!"ini#$ra$i%n' (hile an %$her

    a!"ini#$ra$i%n i# $er"e! $he ancillar a!"ini#$ra$i%n. The

    rea#%n ,%r $he la$$er i# -eca+#e a *ran$ %, a!"ini#$ra$i%n !%e#

    n%$ e5 &r%&ri% )i*%re ha)e an e6ec$ -e%n! $he li"i$# %, $he

    c%+n$r in (hich i$ i# *ran$e!. Hence' an a!"ini#$ra$%r

    a&&%in$e! in a ,%rei*n #$a$e ha# n% a+$h%ri$ in $he

    Phili&&ine#. The ancillar a!"ini#$ra$i%n i# &r%&er' (hene)er

    a &er#%n !ie#' lea)in* in a c%+n$r %$her $han $ha$ %, hi# la#$

    !%"icile' &r%&er$ $% -e a!"ini#$ere! in $he na$+re %, a##e$#

    %, $he !ecea#e! lia-le ,%r hi# in!i)i!+al !e-$# %r $% -e

    !i#$ri-+$e! a"%n* hi# heir#[email protected] 2

    I$ (%+l! ,%ll%( $hen $ha$ $he a+$h%ri$ %, $he &r%-a$e c%+r$ $%

    re+ire $ha$ ancillar a!"ini#$ra$%r# ri*h$ $% @$he #$%cB

    cer$ica$e# c%)erin* $he '7 #hare# .. #$an!in* in her

    na"e in $he -%%B# %, a&&ellan$ en*+e$ C%n#%li!a$e!' [email protected]

    -e re#&ec$e! i# e+all -e%n! +e#$i%n. F%r a&&ellan$ i# a

    Phili&&ine c%r