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TitleCaltex v PNOC
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G.R. No. 150711 August 10, 2006


PSTC and Luzon Stevedoring Corporation ("LUSTEVECO") entered into an Agreement of
Assumption of Obligations ("Agreement").

Among the actions enumerated in the Annexes is Caltex (Phils.), Inc. v. Luzon Stevedoring
Corporation which at that time was pending before the then Intermediate Appellate Court (IAC)
directing LUSTEVECO to pay Caltex.

The Decision of the IAC became final and executory.

The Regional Trial Court of Manila, issued a writ of execution in favor of Caltex. However, the
judgment was not satisfied because of the prior foreclosure of LUSTEVECO’s properties.

Caltex subsequently learned of the Agreement between PSTC and LUSTEVECO. Caltex sent
successive demands to PSTC asking for the satisfaction of the judgment rendered by the CFI. PSTC
informed Caltex that it was not a party to the prior case and thus, PSTC would not pay LUSTEVECO’s
judgment debt. PSTC advised Caltex to demand satisfaction of the judgment directly from

Caltex filed a complaint for sum of money against PSTC.

The Issues

The issues in this case are:

1. Whether PSTC is bound by the Agreement when it assumed all

the obligations of LUSTEVECO; and

2. Whether Caltex is a real party in interest to file an action to recover from PSTC the judgment debt
against LUSTEVECO.

The Ruling of this Court

The petition is meritorious.

Caltex May Recover from PSTC Under the Terms of the Agreement

Caltex may recover the judgment debt from PSTC not because of a stipulation in Caltex’s favor but
because the Agreement provides that PSTC shall assume all the obligations of LUSTEVECO.

In this case, LUSTEVECO transferred, conveyed and assigned to PSTC all of LUSTEVECO’s
business, properties and assets pertaining to its tanker and bulk business "together with all the
obligations relating to the said business, properties and assets."

When PSTC assumed all the properties, business and assets of LUSTEVECO pertaining to
LUSTEVECO’s tanker and bulk business, PSTC also assumed all of LUSTEVECO’s obligations
pertaining to such business. The Agreement specifically mentions the case between LUSTEVECO
and Caltex, docketed as AC-G.R. CV No. 62613, then pending before the IAC. The Agreement
provides that PSTC may demand and receive any claim out of counter-suits or counterclaims arising
from the actions enumerated in the Annexes.

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