Alejandro Ng Wee filed a complaint against UEM MARA Philippines Corporation seeking to recover P210 million that he invested with Wincorp, which was then loaned to Power Merge Corporation. However, the court found that Ng Wee did not have a valid cause of action against UEM MARA. A cause of action requires a right held by the plaintiff that the defendant violated. While Ng Wee argued the loan proceeds were used by Luis Juan Virata to acquire interests in UEM MARA, this does not constitute a violation of Ng Wee's rights by UEM MARA. UEM MARA's involvement was merely incidental, not direct. Therefore, Ng Wee failed to establish the third element
Alejandro Ng Wee filed a complaint against UEM MARA Philippines Corporation seeking to recover P210 million that he invested with Wincorp, which was then loaned to Power Merge Corporation. However, the court found that Ng Wee did not have a valid cause of action against UEM MARA. A cause of action requires a right held by the plaintiff that the defendant violated. While Ng Wee argued the loan proceeds were used by Luis Juan Virata to acquire interests in UEM MARA, this does not constitute a violation of Ng Wee's rights by UEM MARA. UEM MARA's involvement was merely incidental, not direct. Therefore, Ng Wee failed to establish the third element
Alejandro Ng Wee filed a complaint against UEM MARA Philippines Corporation seeking to recover P210 million that he invested with Wincorp, which was then loaned to Power Merge Corporation. However, the court found that Ng Wee did not have a valid cause of action against UEM MARA. A cause of action requires a right held by the plaintiff that the defendant violated. While Ng Wee argued the loan proceeds were used by Luis Juan Virata to acquire interests in UEM MARA, this does not constitute a violation of Ng Wee's rights by UEM MARA. UEM MARA's involvement was merely incidental, not direct. Therefore, Ng Wee failed to establish the third element
UEM MARA PHILIPPINES CORPORATION v ALEJANDRO NG WEE
G.R. No. 206563 October 14, 2020, THIRD DIVISION (Gaerlan, J.) FACTS: Alejandro Ng Wee filed a Complaint for sum of money, which included an application for the issuance of a writ of preliminary attachment against UEM MARA. Ng Wee sought to hold the defendants therein jointly and severally liable for the amount of P210,595,991.62. Ng Wee placed a sizable amount of funds with Wincorp which were later loaned to Power Merge Corporation, the entire shareholdings of which was beneficially owned by Mr. Luis Juan Virata. Ng Wee discovered that Power Merge was a fairly new corporation with a subscribed capitalization of only P37,000,000.00, had no track record and was not an ongoing business concern. Yet, it was given by Wincorp a credit line facility in the huge amount of over P2,500,000,000.00. In addition, Ng Wee further discovered that, through a side agreement, Wincorp agreed that Power Merge would not be liable to pay the amounts given it under the Power Merge Credit Line Facility. Ng Wee further discovered that the Power Merge Credit Line Facility was actually part of the fraudulent scheme between, among others, Wincorp and its directors, on the one hand, and Mr. Virata, on the other hand that traces its origin from the Hottick Line Credit Facility. ISSUE: Does Ng Wee have a cause of action against UEM-MARA? RULING: No. A cause of action is the act or omission by which a party violates a right of another. The essential elements of a cause of action are (1) a right in favor of the plaintiff by whatever means and under whatever law it arises or is created; (2) an obligation on the part of the named defendant to respect or not to violate such right; and (3) an act or omission on the part of such defendant in violation of the right of the plaintiff or constituting a breach of the obligation of the defendant to the plaintiff for which the latter may maintain an action for recovery of damages or other appropriate relief. The third requisite is severely lacking in this case. Respondent Ng Wee cannot point to a specific wrong committed by UEM-MARA against him in relation to his investments in Wincorp, other than being the object of Wincorp's desires. He merely alleged that the proceeds of the Power Merge loan were used by Virata in order to acquire interests in UEM-MARA, but this does not, however, constitute a valid cause of action against the company even if the Court were to assume the allegation to be true. It would indeed be a giant leap in logic to say that Wincorp's objective automatically makes UEM-MARA a party to the fraud. UEM-Mara's involvement in this case is merely incidental, not direct.