Wednesday, September 7, 2016

MCC INDUSTRIAL SALES vs. SSANGYONG CORPORATION


The best romantic stories (wrong, this is not an affair I'm talking about) are the ones that start with no trace of love at all. No 'I love yous', no noisy courtships, no corny heads-up anywhere else.   In fact one of the best circumstances in meeting a woman and establish a connection developing it into a full blown romance is while you're in the course of your everyday job routine as you both practice your profession. It’s quiet, no fanfare, it’s just natural, and you just go with the flow. It’s just like two adult people having a typical conversation where the emotional attachments is accidental and just unnoticeably grows.

Well obviously I think the best place to get a partner is  nowhere else but in the field that you are in. If you belong to the entertainment field, the business, or the arts,  you'd do your self a big favor if you find a partner in life working in the same arena. Because the key to a good relationship is understanding and no one can understand you better but the one who knows the ropes as you do. Lawyers, doctors, of course they can intermarry,  both field have the same discipline.  Although I think the best match is when both of you are the same. Because that amounts to improvement of the occupation, and excellence given out towards that field. And that spells improvement in that field where society benefits in the long run. It's simply just improvement of the gene pool doctrine. A family of lawyers excel.  A family of doctors excel. Same as true with other professions.

Like let’s say in legal practice, having a young smart and gorgeous lady associate assigned with you to work in a case is a very good example to cite here.  “Atty. Clavecilla we are assigning you this case..” “Rape with homicide?  But this is a criminal case...” “And a celebrated case at that… accused comes from a prominent family.. you could be on TV complete with all the media coverage.. you could be famous don’t you want that?” “How old is the victim?” “12 years old”  “I dunno.. these criminal cases are so stressful” “That’s why we have someone to work with you on this” “Who?” “Atty. ______?” All gentlemen stood up. Beautiful lady walks in, all hot and gorgeous tsk. “Ehem” “A sudden smile.. I never thought dispositions could change so quickly within seconds and display otherwise Atty. Clavecilla?” “Hmm shut up” “Atty. Clavecilla? Meet Atty._____.”  (woops I’m imagining things again). 

And so the next day the two of you decides to take a walk in the park to loosen up stress a bit to brake the ice and start up things.. and to discuss the case. You buy her ice cream. Discuss the pleadings.. prosecution evidence.. witnesses... come up with possible scenarios, counter defenses..  you talk.. and talk.. all in the course of the practice of your profession. You were mostly together expected to bring out results. Until one day.. she starts secretly admiring your artistry of presentation.. your voice, your attack.. the elegant man that you are. And you notice the heart and sincerity behind the facade of a woman's mere innate revelry of beauty and brains. But you both brushed it aside to focus on the case where both of you are on the same end goal of bringing justice to the little girl’s memory. 

But you both can’t help it… though you denied looking for each other’s presence.  And in a month or two.. you end up both in bed. Thus, sealing the invisible attachment. You woke up with her by your side one morning, you caressed her long hair, pulled her closer intoxicated by her mouth and subtle words of care, the smell of her elegant perfume. You speak to her “I didn't know you personally approached Jake to assign you on this case" "I had to, I feel sorry for the girl, I felt I had to do something" "You did the right thing" "I'm a bit worried about our witness though" "Don’t worry about it, all they can do is tear down her credibility.. substantial evidence is on our side” “But we need to come up with another witness just in case they half succeed in doing that.. we can't just rely on our direct and redirect examinations, we need corroborative witness” “I've already taken care of that.. I’ll be at the scene of the crime right after the arraignment this noon.. talk to some people.. one of the police had tipped me a good lead yesterday.. I'm very sure another vital witness will surface... believe me, they always do” “Let’s work for a capital punishment” “We are.. and we’ll get there, for the mean time let’s do our best and take every chance we have and give them what we got from beginning to end once that hell started rolling.” She pulls the pillows and sheet to cover her naked body cuddles even closer and kisses you.

Case closed. You both won the case. Now you’re each working on different assignments. You chanced at each other at a coffee shop. And the next scenarios are denials that you both care. But work is hectic and time remains of the essence. So you both tell yourselves.. maybe in another season..and you both try to find all possible reasons not to. But love decides how things must be.. and love is stronger far than you both.  

(Tsk tsk.. lupet ba sa story.. iyak ka na naman Cass ;p )

Let’s get to the case:
     
MCC Industrial Sales is a domestic corporation engaged in the business of importing and wholesaling stainless steel products. One of its suppliers is the Ssangyong Corporation from Seoul, South Korea having its regional office here in Makati. The two corporations conducted business through phone calls and fax or to be more scientific in term, telecopy transmissions.

Now.. here’s their usual practice in conducting their biz.. Ssangyong Makati would send the pro forma invoices containing the details of the steel product order to MCC. If the latter conforms thereto, its representative affixes his signature on the faxed copy and sends it back to Ssangyong, again by fax. 

Ssangyong sent by fax a letter addressed to Gregory Chan, MCC Manager and President of Sanyo Seiki Stainless Steel Corporation, in order to confirm MCC and SANYOSEIKI’s order of 200 metric tons of  hot rolled stainless steel under a preferential rate of $1,860 per MT.

Chan, on behalf of the corporations, assented and affixed his signature on the conforme portion of the letter. Ssangyong forwarded to MCC a pro forma invoice containing the terms and conditions of the transaction. It stated that the payment for the ordered steel products would be made through an irrevocable LETTER OF CREDIT. MCC sent back by fax to Ssangyong the invoice bearing the conformity signature of Chan. 

So.. it’s now a closed deal.. a confirmed transaction..

So Ssangyong now placed the order with its steel manufacturer, Pohang Iron and Steel Corporation, in South Korea and paid the same in full. Ssangyong informed MCC and Sanyo Seiki by way of fax transmittal, that it was ready to ship the stainless steel from Korea to the Philippines. It requested that the opening of the LC (letter of credit)  be facilitated. Chan affixed his signature on the fax transmittal and returned the same by fax to Ssangyong. 

However, both Sanyo Seiki and MCC failed to open the letter of credit. 

Thereafter, Ssanyong filed before the RTC a civil action for damages due to breach of contract against MCC, Sanyo Seiki, and Chan, alleging that the defendants breached their contract when they refused to open the letter of credit. 

Defendants filed a demurrer to evidence alleging that Ssangyong failed to present the original copies of the pro forma invoices on which the civil action was based. 

The RTC admitted the documentary evidence as electronic evidence and ruled in favor of Ssanyong. Upon appeal to the CA, the latter affirmed the RTC ruling.

Issue: 

Whether or not the printout of a facsimile transmission an electronic data message or electronic document and admissible as such? 

Ruling: 

NO. 

Although the parties did not raise the question whether the original facsimile transmissions are "electronic data messages" or "electronic documents" within the context of the Electronic Commerce Act (the petitioner merely assails as inadmissible evidence the photocopies of the said facsimile transmissions), we deem it appropriate to determine first whether the said fax transmissions are indeed within the coverage of R.A. No. 8792 before ruling on whether the photocopies thereof are covered by the law. 

Petitioner contends that the photocopies of the pro forma invoices presented by respondent Ssangyong to prove the perfection of their supposed contract of sale are inadmissible in evidence and do not fall within the ambit of R.A. No. 8792, because the law merely admits as the best evidence the original fax transmittal. On the other hand, respondent posits that, from a reading of the law and the Rules on Electronic Evidence, the original facsimile transmittal of the pro forma invoice is admissible in evidence since it is an electronic document and, therefore, the best evidence under the law and the Rules. Respondent further claims that the photocopies of these fax transmittals are admissible under the Rules on Evidence because the respondent sufficiently explained the non-production of the original fax transmittals.

The ruling of the Appellate Court is incorrect. R.A. No. 8792, otherwise known as the Electronic Commerce Act of 2000, CONSIDERS AN ELECTRONIC DATA MESSAGE OR AN ELECTRONIC DOCUMENT AS THE FUNCTIONAL EQUIVALENT OF A WRITTEN DOCUMENT FOR EVIDENTIARY PURPOSES. The Rules on Electronic Evidence regards an electronic document as admissible in evidence if it complies with the rules on admissibility prescribed by the Rules of Court and related laws, and is authenticated in the manner prescribed by the said Rules. An electronic document is also the equivalent of an original document under the Best Evidence Rule, if it is a printout or output readable by sight or other means, shown to reflect the data accurately.

Thus, to be admissible in evidence as an electronic data message or to be considered as the functional equivalent of an original document under the Best Evidence Rule, the writing must foremost be an "electronic data message" or an "electronic document.

We, therefore, conclude that the terms "electronic data message" and "electronic document," as defined under the Electronic Commerce Act of 2000, do not include a facsimile transmission. Accordingly, a facsimile transmission cannot be considered as electronic evidence. It is not the functional equivalent of an original under the Best Evidence Rule and is not admissible as electronic evidence.

Since a facsimile transmission is not an "electronic data message" or an "electronic document," and cannot be considered as electronic evidence by the Court, with greater reason is a photocopy of such a fax transmission not electronic evidence. In the present case, therefore, Pro Forma Invoice Nos. ST2-POSTS0401-1 and ST2-POSTS0401-2 (Exhibits "E" and "F"), which are mere photocopies of the original fax transmittals, are not electronic evidence, contrary to the position of both the trial and the appellate courts.