Bastida Vs

7/24/2019 Bastida Vs

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Bastida vs. Menzi & Co.

GRN 35840; March 31, 1933

1. CONTRACT OF EMPLOYMENT; RELATIONSHIP BETWEEN EMPLOYER ANDEMPLOYEE; COPARTNERSHIP.-The relatio!hi" e!ta#li!he$ #et%ee the

$e&e$at 'or"oratio a$ the "laiti( #) their 'otra't %a! ot that o&"arter!* #+t that o& e,"lo)er a$ e,"lo)ee* %here#) the "laiti( %a! tore'eie / "er'et o& the et "ro0t! o& the &ertilier #+!ie!! o& the$e&e$at 'or"oratio i 'o,"e!atio &or hi! !eri'e! o& !+"eri!i2 the,i3i2 o& the &ertilier!. Neither the "roi!io! o& the 'otra't or the'o$+'t o& the "artie! "rior or !+#!e4+et to it! e3e'+tio 5+!ti0e$ the0$i2 that it %a! a 'otra't o& 'o"arter!hi".

6. ID.; ID.; ID.-The trial 'o+rt relie$ o arti'le 117 o& the Co$e o& Co,,er'e*%hi'h "roi$e! that arti'le! o& a!!o'iatio #) %hi'h t%o or ,ore "er!o!o#li2ate the,!ele! to "la'e i a 'o,,o &+$ a) "ro"ert)* i$+!tr)* or

a) o& the!e thi2!* i or$er to o#tai "ro0t* !hall #e 'o,,er'ial* o ,atter%hat it! 'la!! ,a) #e* "roi$e$ it ha! #ee e!ta#li!he$ i a''or$a'e %iththe "roi!io! o& that Co$e; #+t i the 'a!e at #ar there %a! o 'o,,o&+$* that i!* a &+$ #elo2i2 to the "artie! a! 5oit o%er! or "arter!.I!tea$ o& re'eii2 a 03e$ !alar) or a 03e$ !alar) a$ a !,all "er'eta2e o&the et "ro0t!* the "laiti( %a! to re'eie / "er 'et o& the et "ro0t! a!'o,"e!atio &or hi! !eri'e!. It i! o% %ell !ettle$ that the ol$ r+le that!hari2 "ro0t! a! "ro0t! ,a$e oe a "arter i! oerthro%. 8Me'he,*!e'o$ e$itio* ". 9:.

. ID.; ID.; ID.-It i! o%here !tate$ i E3hi#it A that the "artie! %ere

e!ta#li!hi2 a "arter!hi" or ite$e$ to #e'o,e "arter!. e !o'ie$a$ 'o> i! +!e$ i "roi$i2that $e&e$at 'or"oratio !hall ot e2a2e i the #+!ie!! o& "re"are$&ertilier! e3'e"t i a!!o'iatio %ith the "laiti( 8e !o'ie$a$ 'o. The &a'ti! that e !o'ie$a$ 'o* a! there +!e$* ,erel) ,ea! e re+io 'o or ia!!o'iatio %ith* a$ $oe! ot 'arr) the ,eai2 o& >i "arter!hi" %ith>.Altho+2h the %or$ >a!!o'iate$> ,a) #e relate$ et),olo2i'all) to the S"ai!h%or$ >!o'io>* ,eai2 "arter* it $oe! ot i it! 'o,,o a''e"tatio i,"l)a) "arter!hi" relatio.

?. PLEADINWhere a,e$e$ "lea$i2!hae #ee 0le$* alle2atio! i the ori2ial "lea$i2! are hel$ a$,i!!i#le* #+ti !+'h 'a!e the ori2ial "lea$i2! 'a hae o e(e't* +le!! &or,all)o(ere$ i ei$e'e.> 8oe! o Ei$e'e* !e'. 6; L+'i$o !. Cal+"ita* 6Phil.* 1?9.

Thi! i! a a""eal #) Mei Co.* I'.* oe o& the $e&e$at!* &ro, a $e'i!ioo& the Co+rt o& Fir!t I!ta'e o& Maila. The 'a!e %a! trie$ o the a,e$e$


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'o,"lait $ate$ Ma) 67* 1:69 a$ $e&e$at!= a,e$e$ a!%er thereto o&Se"te,#er 1* 1:69. For the !ae o& 'leare!!* %e !hall i'or"orate hereithe "ri'i"al alle2atio! o& the "artie!.

FIRST CASE OF ACTION

Plaiti( alle2e$

IThat the $e&e$at . M. Mei* to2ether %ith hi! %i&e a$ $a+2hter* o%!iet)-ie "er 'et 8::G o& the 'a"ital !to' o& the $e&e$at Mei Co.*I'.* that the "laiti( ha! #ee i&or,e$ a$ there&ore #eliee! that the$e&e$at . M. Mei* hi! %i&e a$ $a+2hter* to2ether %ith the $e&e$at P.C. S'hlo#oh, a$ oe +a Sei#oth* 'o!tit+te the #oar$ o& $ire'tor! o& the$e&e$at* Mei Co.* I'.;

IIThat o A"ril 6* 1:66* the $e&e$at Mei Co.* I'.* thro+2h it! "re!i$eta$ 2eeral ,aa2er* . M. Mei* +$er the a+thorit) o& the #oar$ o&$ire'tor!* etere$ ito a 'otra't %ith the "laiti( to e2a2e i the #+!ie!!o& e3"loiti2 "re"are$ &ertilier!* a! ei$e'e$ #) the 'otra't ,are$E3hi#it A* atta'he$ to the ori2ial 'o,"lait a! a "art thereo&* a$ lie%i!e,a$e a "art o& the a,e$e$ 'o,"lait* a! i& it %ere here 'o"ie$ er#ati,;

IIIThat i "+r!+a'e o& !ai$ 'otra't* "laiti( a$ $e&e$at Mei Co.* I'.*#e2a to ,a+&a't+re "re"are$ &ertilier!* the &or,er !+"erite$i2 the

%or o& a't+al "re"aratio* a$ the latter* thro+2h $e&e$at! . M. Meia$ P. C. S'hlo#oh,* ,aa2i2 the #+!ie!! a$ o"ei2 a a''o+tetitle$ >FERTILIERS> o the #oo! o& the $e&e$at Mei Co.* I'.*%here all the a''o+t! o& the "arter!hi" #+!ie!! %ere !+""o!e$ to #e e"t;the "laiti( ha$ o "arti'i"atio i the ,ai2 o& the!e etrie!* %hi'h %ere%holl) i the $e&e$at!= 'har2e* +$er %ho!e or$er! eer) etr) %a! ,a$e;

I@That a''or$i2 to "ara2ra"h o& the 'otra't E3hi#it A* the $e&e$at Mei Co.* I'.* %a! o#li2e$ to re$er a+al #ala'e !heet! to the "laiti( +"othe th $a) o& +e o& ea'h )ear; that the "laiti( ha$ o iteretio i

the "re"aratio o& the!e )earl) #ala'e!* or %a! he "er,itte$ to hae a)a''e!! to the #oo! o& a''o+t; a$ %he the #ala'e !heet! %ere !ho%hi,* he* #eliei2 i 2oo$ &aith that the) 'otaie$ the tr+e !tate,et o& the"arter!hi" #+!ie!!* a$ rel)i2 +"o the 2oo$ &aith o& the $e&e$at!*Mei Co.* I'.* . M. Mei* a$ P. C. S'hlo#oh,* a''e"te$ a$ !i2e$the,* the la!t #ala'e !heet hai2 #ee re$ere$ i the )ear 1:67;

@


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That #) rea!o o& the &ore2oi2 &a't! a$ e!"e'iall) tho!e !et &orth i the"re'e$i2 "ara2ra"h* the "laiti( %a! e"t i i2ora'e o& the $e&e$at!=a't! relati2 to the ,aa2e,et o& the "arter!hi" &+$!* a$ the ee"i2 o&a''o+t!* +til he %a! i&or,e$ a$ !o #eliee! a$ alle2e!* that the$e&e$at! ha$ 'o!"ire$ to 'o'eal &ro, hi, the tr+e !tat+! o& the

#+!ie!!* a$ to hi! $a,a2e a$ "re5+$i'e ,a$e &al!e etrie! i the #oo! o&a''o+t a$ i the )earl) #ala'e !heet!* the e3a't at+re a$ a,o+t o&%hi'h it i! i,"o!!i#le to a!'ertai* ee a&ter the e3a,iatio o& the #oo!o& the #+!ie!!* $+e to the $e&e$at!= re&+!al to &+ri!h all the #oo! a$$ata re4+ire$ &or the "+r"o!e* a$ the 'o!tat o#!ta'le! the) hae "la'e$i the %a) o& the e3a,iatio o& the #oo! o& a''o+t a$ o+'her!;

@IThat %he the "laiti( re'eie$ the i&or,atio ,etioe$ i the "re'e$i2"ara2ra"h* he $e,a$e$ that the $e&e$at! "er,it hi, to e3a,ie the#oo! a$ o+'her! o& the #+!ie!!* %hi'h %ere i their "o!!e!! o* i or$er

to a!'ertai the tr+th o& the alle2e$ &al!e etrie! i the #oo! a$ #ala'e!heet! !+#,itte$ &or hi! a""roal* #+t the $e&e$at! re&+!e$* a$ $i$ ot'o!et to the e3a,iatio +til a&ter the ori2ial 'o,"lait %a! 0le$ i thi!'a!e; #+t +" to thi! ti,e the) hae re&+!e$ to &+ri!h all the #oo!* $ata* a$o+'her! e'e!!ar) &or a 'o,"lete a$ a''+rate e3a,iatio o& all the"arter!hi"=! a''o+t!; a$

@IIThat a! a re!+lt o& the "artial e3a,iatio o& the #oo! o& a''o+t o& the#+!ie!!* the "laiti( ha!* thro+2h hi! a''o+tat!* $i!'oere$ that the$e&e$at!* 'o!"iri2 a$ 'o&e$erati2 to2ether* "re!ete$ to the "laiti(

$+ri2 the "erio$ 'oere$ #) the "arter!hi" 'otra't &al!e a$ i'orre'ta''o+t!*

8a For hai2 i'l+$e$ therei +$+e itere!t;

8# For hai2 etere$* a! a 'har2e to &ertilier!* !alarie! a$ %a2e! %hi'h!ho+l$ hae #ee "ai$ a$ %ere i &a't "ai$ #) the $e&e$at Mei Co.*I'.;

8' For hai2 'olle'te$ &ro, the "arter!hi" the i'o,e ta3 %hi'h !ho+l$hae #ee "ai$ &or it!* o% a''o+t #) Mei Co.* I'.;

8$ For hai2 'olle'te$* to the $a,a2e a$ "re5+$i'e o& the "laiti(*'o,,i!!io! o the "+r'ha!e o& ,aterial! &or the ,a+&a't+re o& &ertilier!;

8e For hai2 a""ro"riate$* to the $a,a2e a$ "re5+$i'e o& the "laiti(* the"ro0t! o#taie$ &ro, the !ale o& &ertilier! #elo2i2 to the "arter!hi" a$#o+2ht %ith it! o% &+$!; a$


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8& For hai2 a""ro"riate$ to the,!ele! all re#ate! &or &rei2ht i!+ra'e*ta3e!* et'.* +"o ,aterial! &or &ertilier #o+2ht a#roa$* o etrie! o& !ai$re#ate! hai2 #ee ,a$e o the #oo! to the 're$it o& the "arter!hi".

"o the !tre2th o& the &a't! !et o+t i thi! 0r!t 'a+!e o& a'tio* the "laiti(

"ra)! the 'o+rt

1. To "rohi#it the $e&e$at!* ea'h a$ eer) oe o& the,* &ro, $e!tro)i2a$ 'o'eali2 the #oo! a$ "a"er! o& the "arter!hi" 'o!tit+te$ #et%eethe $e&e$at Mei Co.* I'.* a$ the "laiti(;

6. To !+,,o ea'h a$ eer) $e&e$at to a""ear a$ 2ie a tr+e a''o+to& all &a't! relati2 to the "arter!hi" #et%ee the "laiti( a$ the$e&e$at Mei Co.* I'.* a$ o& ea'h a$ eer) a't a$ tra!a'tio'oe'te$ %ith the #+!ie!! o& !ai$ "arter!hi" &ro, the #e2ii2 to A"ril6* 1:6* a$ a tr+e !tate,et o& all ,er'ha$i!e o& %hateer $e!'ri"tio*

"+r'ha!e$ &or !ai$ "arter!hi"* a$ o& all the e3"e$it+re! a$ !ale! o& eer)i$* to2ether %ith the tr+e a,o+t thereo&* #e!i$e! the !+,! re'eie$ #)the "arter!hi" &ro, eer) !o+r'e to2ether %ith their e3a't at+re* a$ atr+e a$ 'o,"lete a''o+t o& the o+'her! &or all !+,! "ai$ #) the"arter!hi"* a$ o& the !alarie! "ai$ to it! e,"lo)ee!;

. To $e'lare +ll a$ oi$ the )earl) #ala'e! !+#,itte$ #) the $e&e$at!to the "laiti( &ro, 1:66 to 1:67* #oth i'l+!ie;

?. To or$er the $e&e$at! to 2ie a tr+e !tate,et o& all re'ei"t! a$$i!#+r!e,et! o& the "arter!hi" $+ri2 the "erio$ o& it! e3i!te'e* #e!i$e!

2rati2 the "laiti( a) other re,e$) that the 'o+rt ,a) $ee, 5+!t a$e4+ita#le.

De&e$at! $eie$ all the alle2atio! o& the a,e$e$ 'o,"lait* e3'e"t the&or,al alle2atio! a! to the "artie!* a$ a! a !"e'ial $e&e!e to the 0r!t'a+!e o& a'tio alle2e$

1. That the $e&e$at 'or"oratio* Mei Co.* I'.* ha! #ee e2a2e$ ithe 2eeral ,er'ha$i!e #+!ie!! i the Phili""ie I!la$! !i'e it!or2aiatio i O'to#er* 1:61* i'l+$i2 the i,"ortatio a$ !ale o& all i$!o& 2oo$!* %are!* a$ ,er'ha$i!e* a$ e!"e'iall) !i,"le &ertilier! a$

&ertilier i2re$iet!* a$ a! a "art o& that #+!ie!!* it ha! #ee e2a2e$!i'e it! or2aiatio i the ,a+&a't+re a$ !ale o& "re"are$ &ertilier! &ora2ri'+lt+ral "+r"o!e!* a$ ha! +!e$ &or that "+r"o!e tra$e-,ar! #elo2i2to it;

6. That o or a#o+t Noe,#er* 1:61* the $e&e$at* Mei Co.* I'.* ,a$ea$ etere$ ito a e,"lo),et a2ree,et %ith the "laiti(* %hore"re!ete$ that he ha$ ha$ ,+'h e3"erie'e i the ,i3i2 o& &ertilier!* to


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!+"erite$ the ,i3i2 o& the i2re$iet! i the ,a+&a't+re o& "re"are$&ertilier! i it! &ertilier $e"art,et a$ to o#tai or$er! &or !+'h "re"are$&ertilier! !+#5e't to it! a""roal* &or a 'o,"e!atio o& / "er'et o& the et"ro0t! %hi'h it ,i2ht $erie &ro, the !ale o& the &ertilier! "re"are$ #) hi,*a$ that !ai$ Fra'i!'o Ba!ti$a %ore$ +$er !ai$ a2ree,et +til A"ril 6*

1:66* a$ re'eie$ the 'o,"e!atio a2ree$ +"o &or hi! !eri'e!; that othe !ai$ 6th o& A"ril* 1:66* the !ai$ Mei Co.* I'.* a$ the !ai$ Fra'i!'oBa!ti$a ,a$e a$ etere$ ito the %ritte a2ree,et* %hi'h i! ,are$E3hi#it A* a$ ,a$e a "art o& the a,e$e$ 'o,"lait i thi! 'a!e* %here#)the) ,+t+all) a2ree$ that the e,"lo),et o& the !ai$ Fra'i!'o Ba!ti$a #)the !ai$ Mei Co.* I'.* i the 'a"a'it) !tate$* !ho+l$ #e &or a $e0ite"erio$ o& 0e )ear! &ro, that $ate a$ +$er the other ter,! a$ 'o$itio!!tate$ therei* #+t %ith the +$er!ta$i2 a$ a2ree,et that the !ai$Fra'i!'o Ba!ti$a !ho+l$ re'eie a! 'o,"e!atio &or hi! !ai$ !eri'e! ol)/ "er'et o& the et "ro0t! $erie$ &ro, the !ale o& the &ertilier! "re"are$#) hi, $+ri2 the "erio$ o& the 'otra't i!tea$ o& / "er 'et o& !+'h

"ro0t!* a! "roi$e$ i hi! &or,er a2ree,et; that the !ai$ Fra'i!'o Ba!ti$a%a! &o+$ to #e i'o,"etet to $o a)thi2 i relatio to it! !ai$ &ertilier#+!ie!! %ith the e3'e"tio o& oer-!eei2 the ,i3i2 o& the i2re$iet! ithe ,a+&a't+re o& the !a,e* a$ o or a#o+t the ,oth o& De'e,#er*1:66* the $e&e$at* Mei Co.* I'.* i or$er to ,ae !ai$ #+!ie!!!+''e!!&+l* %a! o#li2e$ to a$ a't+all) $i$ a!!+,e the &+ll ,aa2e,et a$$ire'tio o& !ai$ #+!ie!!;

. That the a''o+t! o& the #+!ie!! o& the !ai$ &ertilier $e"art,et o&Mei Co.* I'.* %ere $+l) e"t i the re2+lar #oo! o& it! 2eeral #+!ie!!*i the or$iar) 'o+r!e thereo&* +" to +e * 1:6* a$ that a&ter that ti,e

a$ $+ri2 the re,ai$er o& the "erio$ o& !ai$ a2ree,et* &or the "+r"o!e o&'oeie'e i $eter,ii2 the a,o+t o& 'o,"e!atio $+e to the "laiti(+$er hi! a2ree,et* !e"arate #oo! o& a''o+t &or it! !ai$ &ertilier#+!ie!! %ere $+l) e"t i the a,e o& =Mei Co.* I'.* Fertilier=* a$+!e$ e3'l+!iel) &or that "+r"o!e* a$ it %a! ,+t+all) a2ree$ #et%ee the!ai$ Fra'i!'o Ba!ti$a a$ the !ai$ Mei Co.* I'.* that the )earl)#ala'e! &or the $eter,iatio o& the et "ro0t! o& !ai$ #+!ie!! $+e to the!ai$ "laiti( a! 'o,"e!atio &or hi! !eri'e! +$er !ai$ a2ree,et %o+l$#e ,a$e a! o& De'e,#er 1!t* i!tea$ o& +e th* o& ea'h )ear* $+ri2 the"erio$ o& !ai$ a2ree,et; that the a''o+t! o& the #+!ie!! o& it! !ai$&ertilier $e"art,et* a! re'or$e$ i it! !ai$ #oo!* a$ the o+'her! a$

re'or$! !+""orti2 the !a,e* &or ea'h )ear o& !ai$ #+!ie!! hae #ee $+l)a+$ite$ #) Me!!r!. White* Pa2e Co.* 'erti0e$ "+#li' a''o+tat!* o& Maila*%ho* !hortl) a&ter the 'lo!e o& #+!ie!! at the e$ o& ea'h )ear +" to a$i'l+$i2 the )ear 1:67* hae "re"are$ there&ro, a ,a+&a't+ri2 a$ "ro0ta$ lo!! a''o+t a$ #ala'e !heet* !ho%i2 the !tat+! o& !ai$ #+!ie!! a$the !hare o& the et "ro0t! "ertaii2 to the "laiti( a! hi! 'o,"e!atio+$er !ai$ a2ree,et; that a&ter the !ai$ ,a+&a't+ri2 a$ "ro0t a$ thelo!! a''o+t a$ #ala'e !heet &or ea'h )ear o& the #+!ie!! o& it! !ai$


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&ertilier $e"art,et +" to a$ i'l+$i2 the )ear 1:67* ha$ #ee "re"are$#) the !ai$ a+$itor! a$ 'erti0e$ #) the,* the) %ere !ho% to a$e3a,ie$ #) the "laiti(* a$ $+l) a''e"te$* a$ a""roe$ #) hi,* %ith &+llo%le$2e o& their 'otet!* a$ a! ei$e'e o& !+'h a""roal* he !i2e$ hi!a,e o ea'h o& the,* a! !ho% o the 'o"ie! o& !ai$ ,a+&a't+ri2 a$

"ro0t a$ lo!! a''o+t a$ #ala'e !heet &or ea'h )ear +" to a$ i'l+$i2the )ear 1:67* %hi'h are atta'he$ to the re'or$ o& thi! 'a!e* a$ %hi'h arehere#) re&erre$ to a$ ,a$e a "art o& thi! a,e$e$ a!%er* a$ ia''or$a'e there%ith* the !ai$ "laiti( ha! a't+all) re'eie$ the "ortio o&the et "ro0t! o& it! !ai$ #+!ie!! &or tho!e )ear! "ertaii2 to hi, &or hi!!eri'e! +$er !ai$ a2ree,et; that at o ti,e $+ri2 the 'o+r!e o& !ai$&ertilier #+!ie!! a$ the li4+i$atio thereo& ha! the "laiti( #ee i a)%a) $eie$ a''e!! to the #oo! a$ re'or$! "ertaii2 thereto* #+t o the'otrar)* !ai$ #oo! a$ re'or$! hae #ee !+#5e't to hi! i!"e'tio a$e3a,iatio at a) ti,e $+ri2 #+!ie!! ho+r!* a$ ee !i'e the'o,,e'e,et o& thi! a'tio* the "laiti( a$ hi! a''o+tat!* Me!!r!.

Ha!i! Sell!* o& Maila* hae #ee 2oi2 oer a$ e3a,ii2 !ai$ #oo!a$ re'or$! &or ,oth! a$ the $e&e$at* Mei Co.* I'.* thro+2h it!oJ'er!* hae t+re$ oer to !ai$ "laiti( a$ hi! a''o+tat the #oo! a$re'or$! o& !ai$ #+!ie!! a$ ee &+ri!he$ the, !+ita#le a''o,,o$atio!i it! o% oJ'e to e3a,ie the !a,e;

?. That "rior to the ter,iatio o& the !ai$ a2ree,et* E3hi#it A* the$e&e$at* Mei Co.* I'.* $+l) oti0e$ the "laiti( that it %o+l$ ot +$era) 'o$itio! ree% hi! !ai$ a2ree,et or 'oti+e hi! !ai$ e,"lo),et%ith it a&ter it! e3"iratio* a$ a&ter the ter,iatio o& !ai$ a2ree,et o&A"ril 6* 1:6* the !ai$ Mei Co.* I'.* ha$ the 'erti0e$ "+#li'

a''o+tat!* White* Pa2e Co.* a+$it the a''o+t! o& the #+!ie!! o& it! !ai$&ertilier $e"art,et &or the &o+r ,oth! o& 1:6 'oere$ #) "laiti(=!a2ree,et a$ "re"are a ,a+&a't+ri2 a$ "ro0t a$ lo!! a''o+t a$#ala'e !heet o& !ai$ #+!ie!! !ho%i2 the !tat+! o& !ai$ #+!ie!! at theter,iatio o& !ai$ a2ree,et* a 'o") o& %hi'h %a! !ho% to a$ e3"laie$to the "laiti(; that at that ti,e there %ere a''o+t! re'eia#le to #e'olle'te$ &or #+!ie!! 'oere$ #) !ai$ a2ree,et o& oer P1** a$there %a! 2+ao* a!he!* 0e to#a''o a$ other &ertilier i2re$iet! o ha$o& oer P/** %hi'h ha$ to #e $i!"o!e$ o& #) Mei Co.* I'.* or al+e$#) the "artie!* #e&ore the et "ro0t! o& !ai$ #+!ie!! &or the "erio$ o& thea2ree,et 'o+l$ #e $eter,ie$; that Mei Co.* I'.* o(ere$ to tae the

&a'e al+e o& !ai$ a''o+t! a$ the 'o!t al+e o& the other "ro"ertie! &or the"+r"o!e o& $eter,ii2 the "ro0t! o& !ai$ #+!ie!! &or that "erio$* a$ to"a) to the "laiti( at that ti,e hi! "ro"ortio o& !+'h "ro0t! o that #a!i!*%hi'h the "laiti( re&+!e$ to a''e"t* a$ #ei2 $i!2r+tle$ #e'a+!e the !ai$Mei Co.* I'.* %o+l$ ot 'oti+e hi, i it! !eri'e* the !ai$ "laiti('o,,e'e$ thi! a'tio* i'l+$i2 therei ot ol) Mei Co.* I'.* #+t al!oit! ,aa2er! . M. Mei a$ P. C. S'hlo#oh,* %herei he o%i2l) ,aeario+! &al!e a$ ,ali'io+! alle2atio! a2ai!t the $e&e$at!; that !i'e


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that ti,e the !ai$ Mei Co.* I'.* ha! #ee 'olle'ti2 the a''o+t!re'eia#le a$ $i!"o!i2 o& the !to'! o ha$* a$ there i! !till o ha$ ol$!to' o& a""ro3i,atel) P6/** %hi'h it ha! #ee +a#le to $i!"o!e o& +" tothi! ti,e; that a! !oo a! "o!!i#le a 0al li4+i$atio a$ a''o+ti2 o& theet "ro0t! o& the #+!ie!! 'oere$ #) !ai$ a2ree,et &or the la!t &o+r

,oth! thereo& %ill #e ,a$e a$ the !hare thereo& a""ertaii2 to the"laiti( %ill #e "ai$ to hi,; that the "laiti( ha! #ee i&or,e$ &ro, ti,e toti,e a! to the !tat+! o& the $i!"o!itio o& !+'h "ro"ertie!* a$ he a$ hi!a+$itor! hae &+ll) e3a,ie$ the #oo! a$ re'or$! o& !ai$ #+!ie!! irelatio thereto.

SECOND CASE OF ACTION

A! a !e'o$ 'a+!e o& a'tio "laiti( alle2e$

I. That the "laiti( here#) re"ro$+'e! "ara2ra"h! I* II* III* I@* a$ @ o& the

0r!t 'a+!e o& a'tio.

II. That the e3a,iatio ,a$e #) the "laiti(=! a+$itor! o& !o,e o& the #oo!o& the "arter!hi" that %ere &+ri!he$ #) the $e&e$at! $i!'lo!e$ the &a'tthat !ai$ $e&e$at! ha$ 'har2e$ to >"+r'ha!e!> o& the #+!ie!!* +$+eitere!t* the a,o+t o& %hi'h the "laiti( i! +a#le to $eter,ie a! he ha!eer ha$ at hi! $i!"o!al the #oo! a$ o+'her! e'e!!ar) &or that"+r"o!e* a$ e!"e'iall)* o%i2 to the &a't that the "arter!hi" 'o!tit+te$#et%ee the "laiti( a$ the $e&e$at Mei Co.* I'.* eer e"t it! o%'a!h #oo* #+t that it! &+$! %ere ,ali'io+!l) i'l+$e$ i the "riate &+$! o&the $e&e$at etit)* either %a! there a !e"arate BANK ACCONT o& the

"arter!hi"* !+'h a''o+t #ei2 i'l+$e$ i the $e&e$at=! #a a''o+t.

III. That &ro, the e3a,iatio o& the "arter!hi" #oo! a! a&ore!ai$* the"laiti( e!ti,ate! that the "arter!hi" #et%ee hi,!el& a$ the $e&e$atMei Co.* I'.* ha! #ee $e&ra+$e$ #) the $e&e$at! #) %a) o& itere!ti a a,o+t o& a""ro3i,atel) P19?*?6./1* o& %hi'h / "er'et* orP7?*//1.9* #elo2! to the "laiti( e3'l+!iel).

Where&ore* the "laiti( "ra)! the 'o+rt to re$er 5+$2,et or$eri2 the$e&e$at! 5oitl) a$ !eerall) to "a) hi, the !+, o& P7?*//1.9* or a)a,o+t %hi'h ,a) 0all) a""ear to #e $+e a$ o%i2 &ro, the $e&e$at!

to the "laiti( +"o thi! 2ro+$* %ith le2al itere!t &ro, the 0li2 o& theori2ial 'o,"lait +til "a),et.

De&e$at! alle2e$

1. That the) re"eat a$ ,ae a "art o& thi! !"e'ial $e&e!e "ara2ra"h! 1* 6* a$ ?* o& the !"e'ial $e&e!e to the 0r!t 'a+!e o& a'tio i thi! a,e$e$a!%er;


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6. That +$er the 'otra't o& e,"lo),eL* E3hi#it A* o& the a,e$e$'o,"lait* the $e&e$at* Mei Co.* I'.* ol) +$ertoo a$ a2ree$ to&a'ilitate 0a'ial ai$ i 'arr)i2 o the !ai$ &ertilier #+!ie!!* a! it ha$#ee $oi2 #e&ore the "laiti( %a! e,"lo)e$ +$er the !ai$ a2ree,et; that

the !ai$ $e&e$at* Mei Co.* I'.* i the 'o+r!e o& the !ai$ #+!ie!! o& it!&ertilier $e"art,et* o"ee$ letter! o& 're$it thro+2h the #a! o& Maila*a''e"te$ a$ "ai$ $ra&t! $ra% +"o it +$er !ai$ letter! o& 're$it* a$o#taie$ loa! a$ a$a'e! o& ,oe)! &or the "+r'ha!e o& ,aterial! to #e+!e$ i ,i3i2 a$ ,a+&a't+ri2 it! &ertilier! a$ i "a)i2 the e3"e!e!o& !ai$ #+!ie!!; that !+'h $ra&t! a$ loa! at+rall) "roi$e$ &or itere!t atthe #ai2 rate &ro, the $ate! thereo& +til "ai$* a! i! the ea!e i all !+'h#+!ie!! eter"ri!e!* a$ that !+'h "a),et! o& itere!t a! %ere a't+all),a$e o !+'h $ra&t!* loa! a$ a$a'e! $+ri2 the "erio$ o& the !ai$e,"lo),et a2ree,et 'o!tit+te$ le2iti,ate e3"e!e! o& !ai$ #+!ie!!+$er !ai$ a2ree,et.

THIRD CASE OF ACTION

A! thir$ 'a+!e o& a'tio* "laiti( alle2e$

I. That he here#) re"ro$+'e! "ara2ra"h! I* II* III* I@* a$ @ o& the 0r!t 'a+!eo& a'tio.

II. That +$er the ter,! o& the 'otra't E3hi#it A* either the $e&e$at! . M.Mei a$ P. C. S'hlo#oh,* or the $e&e$at Mei Co.* I'.* ha$ a ri2htto 'olle't &or it!el& or the,!ele! a) a,o+t %hat!oeer #) %a) o& !alar)

&or !eri'e! re$ere$ to the "arter!hi" #et%ee the "laiti( a$ the$e&e$at* ia!,+'h a! !+'h !eri'e! %ere 'o,"e!ate$ %ith the 7/G o&the et "ro0t! o& the #+!ie!! 'o!tit+ti2 their !hare.

III. That the "laiti( ha!* o hi! o% a''o+t a$ %ith hi! o% ,oe)* "ai$all the e,"lo)ee! he ha! "la'e$ i the !eri'e o& the "arter!hi"* hai2e3"e$e$ &or their a''o+t* $+ri2 the "erio$ o& the 'otra't* oer P99**%itho+t eer hai2 ,a$e a) 'lai, +"o the $e&e$at! &or thi! !+,#e'a+!e it %a! i'l+$e$ i the 'o,"e!atio o& / "er'et %hi'h he %a! tore'eie i a''or$a'e %ith the 'otra't E3hi#it A.

I@. That the $e&e$at! . M. Mei a$ P. C. S'hlo#oh,* ot !ati!0e$ %ith'olle'ti2 +$+e a$ e3'e!!ie !alarie! &or the,!ele!* hae ,a$e the"arter!hi"* or the &ertilier #+!ie!!* "a) the !alarie! o& a +,#er o& thee,"lo)ee! o& the $e&e$at Mei Co.* I'.

@. That +$er thi! ite, o& +$+e !alarie! the $e&e$at! hae a""ro"riate$P?*:6 o& the "arter!hi" &+$!* o& %hi'h / "er'et* or P1/*6 #elo2!e3'l+!iel) to the "laiti(.


9/27

Where&ore* the "laiti( "ra)! the 'o+rt to re$er 5+$2,et or$eri2 the$e&e$at! to "a) 5oitl) a$ !eerall) to the "laiti( the a,o+t o&P1/*6* %ith le2al itere!t &ro, the $ate o& the 0li2 o& the ori2ial'o,"lait +til the $ate o& "a),et.

De&e$at! alle2e$


6. That the $e&e$at* Mei Co.* I'.* thro+2h it! ,aa2er* e3'l+!iel),aa2e$ a$ 'o$+'te$ it! !ai$ &ertilier #+!ie!!* i %hi'h the "laiti( %a!to re'eie / "er'et o& the et "ro0t! a! 'o,"e!atio &or hi! !eri'e!* a!herei #e&ore alle2e$* &ro, o or a#o+t a+ar) 1* 1:6* %he it! other

$e"art,et! ha$ !"e'ial e3"erie'e$ E+ro"ea! i 'har2e thereo&* %hore'eie$ ot ol) !alarie! #+t al!o a "er'eta2e o& the et "ro0t! o& !+'h$e"art,et!; that it! !ai$ &ertilier #+!ie!!* a&ter it! ,aa2er too 'har2eo& it* #e'a,e er) !+''e!!&+l* a$ o%i2 to the lar2e ol+,e o& #+!ie!!tra!a'te$* !ai$ #+!ie!! re4+ire$ 2reat $eal o& ti,e a$ attetio* a$a't+all) 'o!+,e$ at lea!t oe-hal& o& the ti,e o& the ,aa2er a$ 'ertaie,"lo)ee! o& Mei Co.* I'.* i 'arr)i2 it o; that the !ai$ Mei Co.*I'.* &+ri!he$ oJ'e !"a'e* !tatioer) a$ other i'i$etal!* &or !ai$#+!ie!!* a$ ha$ it! e,"lo)ee! "er&or, the $+tie! o& 'a!hier!* a''o+tat!*'ler!* ,e!!e2er!* et'.* &or the !a,e* a$ &or that rea!o the !ai$ Mei Co.* I'.* 'har2e$ ea'h )ear* &ro, a$ a&ter 1:66* a! e3"e!e! o& !ai$

#+!ie!!* %hi'h "ertaie$ to the &ertilier $e"art,et* a! 'ertai a,o+t a!!alarie! a$ %a2e! to 'oer the "ro"ortioal "art o& the oerhea$ e3"e!e!o& Mei Co.* I'.; that the !a,e ,etho$ i! &ollo%e$ i ea'h o& the !eeral$e"art,et! o& the #+!ie!! o& Mei Co.* I'.* that ea'h a$ eer) )ear&ro, a$ a&ter 1:66* a 5+!t "ro"ortio o& !ai$ oerhea$ e3"e!e! %ere'har2e$ to !ai$ &ertilier $e"art,et! a$ etere$ o the #oo! thereo&* %iththe o%le$2e a$ 'o!et o& the "laiti(* a$ i'l+$e$ i the a+$itor!=re"ort!* %hi'h %ere e3a,ie$* a''e"te$ a$ a""roe$ #) hi,* a$ he i! o%e!to""e$ &ro, !a)i2 that !+'h e3"e!e! %ere ot le2iti,ate a$ 5+!te3"e!e! o& !ai$ #+!ie!!.

FORTH CASE OF ACTION

A! &o+rth 'a+!e o& a'tio* the "laiti( alle2e$


II. That the $e&e$at Mei Co.* I'.* thro+2h the $e&e$at! . M. Mei


10/27

a$ P. C. S'hlo#oh,* ha! "ai$* %ith the &+$! o& the "arter!hi" #et%ee the$e&e$at etit) a$ the "laiti(* the i'o,e ta3 $+e &ro, !ai$ $e&e$atetit) &or the &ertilier #+!ie!!* there#) $e&ra+$i2 the "arter!hi" i thea,o+t o& P1*71.6 o& %hi'h / "er'et #elo2! e3'l+!iel) to the"laiti(* a,o+ti2 to P*767.7.

III. That the "laiti( ha!* $+ri2 the "erio$ o& the 'otra't* "ai$ %ith hi! o%,oe) the i'o,e ta3 'orre!"o$i2 to hi! !hare %hi'h 'o!i!t! i /"er'et o& the "ro0t! o& the &ertilier #+!ie!!* e3"e$i2 a#o+t P/*%itho+t eer hai2 ,a$e a) 'lai, &or rei,#+r!e,et a2ai!t the"arter!hi"* ia!,+'h a! it ha! al%a)! #ee +$er!too$ a,o2 the "arter!that ea'h o& the, %o+l$ "a) hi! o% i'o,e ta3.

Where&ore* the "laiti( "ra)! the 'o+rt to or$er the $e&e$at! 5oitl) a$!eerall) to "a) the "laiti( the !+, o& P*767.7* %ith le2al itere!t &ro,the $ate o& the 0li2 o& the ori2ial 'o,"lait +til it! "a),et.

De&e$at! alle2e$


6. That +$er the I'o,e Ta3 La% Mei Co.* I'.* %a! o#li2e$ to a$ $i$,ae ret+r to the


11/27


II. That the "laiti( ha! $i!'oere$ that the $e&e$at Mei Co.* I'.* ha$#ee re'eii2* $+ri2 the "erio$ o& the 'otra't E3hi#it A* &ro, &orei2 0r,!

!elli2 &ertilii2 ,aterial* a !e'ret 'o,,i!!io e4+ialet to / "er'et o& thetotal al+e o& the "+r'ha!e! o& &ertilii2 ,aterial ,a$e #) the "arter!hi"'o!tit+te$ #et%ee the "laiti( a$ the $e&e$at Mei Co.* I'.* a$that !ai$ / "er'et 'o,,i!!io %a! ot etere$ #) the $e&e$at! i the#oo! o& the #+!ie!!* to the 're$it a$ #ee0t o& the "arter!hi"'o!tit+te$ #et%ee the "laiti( a$ the $e&e$at* #+t to the 're$it o& the$e&e$at Mei Co.* I'.* %hi'h a""ro"riate$ it to it!el&.

III. That the e3a't a,o+t* or ee the a""ro3i,ate a,o+t o& the &ra+$ th+!!+(ere$ #) the "laiti( 'aot #e $eter,ie$* #e'a+!e the etrie! re&erri2to the!e ite,! $o ot a""ear i the "arter!hi" #oo!* altho+2h the "laiti(

#eliee! a$ alle2e! that the) $o a""ear i the "riate #oo! o& the$e&e$at Mei Co.* I'.* %hi'h the latter ha! re&+!e$ to &+ri!h*ot%ith!ta$i2 the $e,a$! ,a$e there&or #) the a+$itor! a$ the la%)er!o& the "laiti(.

I@. That tai2 a! #a!i! the a,o+t o& the "+r'ha!e! o& !o,e &ertilii2,aterial ,a$e #) the "arter!hi" $+ri2 the 0r!t &o+r )ear! o& the 'otra'tE3hi#it A* the "laiti( e!ti,ate! that thi! / "er 'et 'o,,i!!io 'olle'te$ #)the $e&e$at Mei Co.* I'.* to the $a,a2e a$ "re5+$i'e o& the "laiti(*a,o+t! to P16*/. o& %hi'h / "er'et #elo2! e3'l+!iel) to the"laiti(.

Where&ore* the "laiti( "ra)! the 'o+rt to or$er the $e&e$at! to "a) 5oitl)a$ !eerall) to the "laiti( the a,o+t o& P??*/91./6* or the e3a't a,o+to%e$ +"o thi! 2ro+$* a&ter #oth "artie! hae a$$+'e$ their ei$e'e +"othe "oit.

De&e$at! alle2e$


6. That the $e&e$at* Mei Co.* I'.* $i$ hae $+ri2 the "erio$ o& !ai$a2ree,et* E3hi#it A* a$ ha! o% %hat i! 'alle$ a >Pro"a2a$a A2e')A2ree,et> %ith the De+t!'he! Kale!)$iat*


12/27

or$er! %ere !et to !ai$ 'o'er &or "ota!h* thro+2h C. A$re Co.* o&Ha,#+r2* a! the a2et o& the !ai$ Mei Co.* I'.* +"o %hi'h the !ai$Mei Co.* I'.* re'eie$ a / "er'et 'o,,i!!io* a,o+ti2 i all toP6*666.6 &or the "ro"a2a$a %or %hi'h it $i$ &or !ai$ 0r, i the Phili""ieI!la$!; that !ai$ 'o,,i!!io! %ere ot i a) !e!e $i!'o+t! o the

"+r'ha!e "ri'e o& !ai$ "ota!h* a$ hae o relatio to the &ertilier #+!ie!!o& %hi'h the "laiti( %a! to re'eie a !hare o& the et "ro0t! &or hi!!eri'e!* a$ 'o!e4+etl) %ere ot 're$ite$ to that $e"art,et;

. That i 2oi2 oer the #oo! o& Mei Co.* I'.* it ha! #ee &o+$ thatthere are ol) t%o ite,! o& 'o,,i!!io!* %hi'h %ere re'eie$ &ro, theite$ S+""l) Co.* o& Sa Fra'i!'o* i the total !+, o& 77./1* %hi'h*thro+2h oer!i2ht* %ere ot 're$ite$ o the #oo! o& the &ertilier$e"art,et o& Mei Co.* I'.* #+t $+e allo%a'e ha! o% #ee 2ie tothat $e"art,et &or !+'h ite,.

SITH CASE OF ACTION

A! !i3th 'a+!e o& a'tio* "laiti( alle2e$

I. That he here#) re"ro$+'e! "ara2ra"h! I* II* III* I@* a$ @* o& the 0r!t 'a+!eo& a'tio.

II. That the $e&e$at Mei Co.* I'.* i 'oll+!io %ith a$ thro+2h the$e&e$at! . M. Mei a$ P. C. S'hlo#oh, a$ their a!!i!tat!* ha!ta,"ere$ %ith the #oo! o& the #+!ie!! ,ai2 0'titio+! tra!&er! i &aoro& the $e&e$at Mei Co.* I'.* o& ,er'ha$i!e #elo2i2 to the

"arter!hi"* "+r'ha!e$ %ith the latter=! ,oe)* a$ $e"o!ite$ i it!%areho+!e!* a$ the !ol$ #) Mei Co.* I'.* to thir$ "er!o!* there#)a""ro"riati2 to it!el& the "ro0t! o#taie$ &ro, !+'h re!ale.

III. That it i! i,"o!!i#le to a!'ertai the a,o+t o& the &ra+$ !+(ere$ #) the"laiti( i thi! re!"e't a! the real a,o+t o#taie$ &ro, !+'h !ale! 'a ol)#e a!'ertaie$ &ro, a e3a,iatio o& the "riate #oo! o& the $e&e$atetit)* %hi'h the latter ha! re&+!e$ to "er,it ot%ith!ta$i2 the $e,a$,a$e &or the "+r"o!e #) the a+$itor! a$ the la%)er! o& the "laiti(* a$ o#a!i! o& 'o,"+tatio 'a #e e!ta#li!he$* ee a""ro3i,atel)* to a!'ertaithe e3tet o& the &ra+$ !+!taie$ #) the "laiti( i thi! re!"e't* #) ,erel)

e3a,ii2 the "arter!hi" #oo!.

Where&ore* the "laiti( "ra)! the 'o+rt to or$er the $e&e$at! . M. Meia$ P. C. S'hlo#oh,* to ,ae a !%or !tate,et a! to all the "ro0t! re'eie$&ro, the !ale to thir$ "er!o! o& the &ertilier! "ertaii2 to the "arter!hi"*a$ the "ro0t! the) hae a""ro"riate$* or$eri2 the, 5oitl) a$ !eerall) to"a) / "er'et o& the et a,o+t* %ith le2al itere!t &ro, the 0li2 o& theori2ial 'o,"lait +til the "a),et thereo&.


13/27

De&e$at! alle2e$

1. That the) re"eat a$ ,ae a "art o& thi! !"e'ial $e&e!e "ara2ra"h! 1* 6* a$ ?* o& the !"e'ial $e&e!e to the 0r!t 'a+!e o& a'tio i thi! a,e$e$

a!%er

6. That +$er the e3"re!! ter,! o& the e,"lo),et a2ree,et* E3hi#it A*the $e&e$at* Mei Co.* I'.* ha$ the ri2ht to i,"ort ito the Phili""ieI!la$! i the 'o+r!e o& it! &ertilier #+!ie!! a$ !ell &or it! e3'l+!ie a''o+ta$ #ee0t !i,"le &ertilier i2re$iet!; that the ol) ,aterial! i,"orte$ #)it a$ !ol$ $+ri2 the "erio$ o& !ai$ a2ree,et %ere !i,"le &ertilieri2re$iet!* %hi'h ha$ othi2 %hateer to $o %ith the #+!ie!! o& ,i3e$&ertilier!* o& %hi'h the "laiti( %a! to re'eie a !hare o& the et "ro0t! a! a"art o& hi! 'o,"e!atio.

SE@ENTH CASE OF ACTION

A! !eeth 'a+!e o& a'tio* "laiti( alle2e$


II. That $+ri2 the e3i!te'e o& the 'otra't E3hi#t A* the $e&e$at Mei Co.* I'.* &or the a''o+t o& the "arter!hi" 'o!tit+te$ #et%ee it!el& a$the "laiti(* a$ %ith the latter=! ,oe)* "+r'ha!e$ &ro, !eeral &orei20r,! ario+! !i,"le &ertilii2 ,aterial &or the +!e o& the "arter!hi".

III. That i the "ai$ ioi'e! &or !+'h "+r'ha!e! there are 'har2e$* #e!i$e!the 'o!t "ri'e o& the ,er'ha$i!e* other a,o+t! &or &rei2ht* i!+ra'e* $+t)*et'.* !o,e o& %hi'h %ere ot etirel) th+! !"et a$ %ere later 're$ite$ #)the !elli2 0r,! to the $e&e$at Mei Co.* I'.

I@. That !ai$ $e&e$at Mei Co.* I'.* thro+2h a$ i 'oll+!io %ith the$e&e$at! . M. Mei a$ P. C. S'hlo#oh, +"o re'ei"t o& the 're$it ote!re,itte$ #) the !elli2 0r,! o& &ertilii2 ,aterial* &or re#ate! +"o &rei2ht*i!+ra'e* $+t)* et'.* 'har2e$ i the ioi'e #+t ot all e3"e$e$* $i$ oteter the, +"o the #oo! to the 're$it o& the "arter!hi" 'o!tit+te$

#et%ee the $e&e$at a$ the "laiti(* #+t etere$ or ha$ the, etere$ tothe 're$it o& Mei Co.* I'.* there#) $e&ra+$i2 the "laiti( o& / "er'eto& the al+e o& !+'h re$+'tio!.

@. That the total a,o+t* or ee the a""ro3i,ate a,o+t o& thi! &ra+$'aot #e a!'ertaie$ %itho+t a e3a,iatio o& the "riate #oo! o& Mei Co.* I'.* %hi'h the latter ha! re&+!e$ to "er,it ot%ith!ta$i2 the$e,a$ to thi! e(e't ,a$e +"o the, #) the a+$itor! a$ the la%)er! o&


14/27

the "laiti(.

Where&ore* the "laiti( "ra)! the 'o+rt to or$er the $e&e$at! . M. Meia$ P. C. S'hlo#oh,* to ,ae a !%or !tate,et a! to the total a,o+t o&!+'h re#ate!* a$ to !ete'e the $e&e$at! to "a) to the "laiti( 5oitl)

a$ !eerall) / "er'et o& the et a,o+t.

De&e$at! alle2e$

1. That the) re"eat a$ ,ae a "art o& thi! !"e'ial $e&e!e "ara2ra"h! 1* 6* a$ ?* o& the !"e'ial $e&e!e to the 0r!t 'a+!e o& a'tio i thi! a,e$e$a!%er

6. That $+ri2 the "erio$ o& !ai$ e,"lo),et a2ree,et* E3hi#it A* the$e&e$at* Mei Co.* I'.* re'eie$ &ro, it! a2et* C. A$re Co.* o&Ha,#+r2* 'ertai 're$it! "ertaii2 to the &ertilier #+!ie!! i the "ro0t! o&

%hi'h the "laiti( %a! itere!te$* #) %a) o& re&+$! o& Coroa No. 1>* at the rate o& P111 "er to* &. o. #. Bai!*Orietal Ne2ro!* to #e $eliere$* a! the) %ere $eliere$* a''or$i2 toi&or,atio re'eie$ #) the "laiti(* $+ri2 the ,oth! o& Noe,#er a$

De'e,#er* 1:6* a$ a+ar)* Fe#r+ar)* Mar'h* a$ A"ril* 1:69.

III. That #oth the 'otra't ,etioe$ a#oe a$ the #ee0t! $erie$there&ro,* %hi'h the "laiti( e!ti,ate! at P:** Phili""ie '+rre')*#elo2! to the &ertilier #+!ie!! 'o!tit+te$ #et%ee the "laiti( a$ the$e&e$at* o& %hi'h / "er'et* or P1*/* #elo2! to !ai$ "laiti(.

I@. That ot%ith!ta$i2 the e3"iratio o& the "arter!hi" 'otra't E3hi#it A*


15/27

o A"ril 6* 1:6* the $e&e$at! hae ot re$ere$ a tr+e a''o+ti2 o& the"ro0t! o#taie$ #) the #+!ie!! $+ri2 the la!t &o+r ,oth! thereo&* a! the"ro"o!e$ #ala'e !+#,itte$ to the "laiti( %a! i'orre't %ith re2ar$ to theietor) o& ,er'ha$i!e* tra!"ortatio e4+i",et* a$ the al+e o& thetra$e ,ar!* &or %hi'h rea!o !+'h "ro"o!e$ #ala'e $i$ ot re"re!et the

tr+e !tat+! o& the #+!ie!! o& the "arter!hi" o A"ril * 1:6.

@. That the "ro"o!e$ #ala'e !+#,itte$ to the "laiti( %ith re&ere'e to the"arter!hi" o"eratio! $+ri2 the la!t &o+r ,oth! o& it! e3i!te'e* %a!lie%i!e i'orre't* ia!,+'h a! it $i$ ot i'l+$e the "ro0t realie$ or to #erealie$ &ro, the 'otra't etere$ ito %ith the Co,"aia


16/27


II. That $+ri2 the "erio$ o& the 'otra't E3hi#it A* the "arter!hi"'o!tit+te$ there#) re2i!tere$ i the B+rea+ o& Co,,er'e a$ I$+!tr) the

tra$e ,ar! >CORONA No. 1>* >CORONA No. 6>* >ARADO>* a$ >Ho>* the"laiti( a$ the $e&e$at hai2 #) their e(ort! !+''ee$e$ i ,ai2 the,&aora#l) o% i the ,aret.

III. That the "laiti( a$ the $e&e$at* la#ori2 5oitl)* hae !+''ee$e$ i,ai2 the &ertilii2 #+!ie!! a "ro!"ero+! 'o'er to !+'h a e3tet thatthe "ro0t! o#taie$ &ro, the #+!ie!! $+ri2 the 0e )ear! it ha! e3i!te$*a,o+t to a""ro3i,atel) P1*** Phili""ie '+rre').

I@. That the al+e o& the 2oo$-%ill a$ the tra$e ,ar! o& a #+!ie!! o& thi!at+re a,o+t! to at lea!t P1*** o& %hi'h !+, / "er'et #elo2! to

the "laiti(* or* P/*.

@. That at the ti,e o& the e3"iratio o& the 'otra't E3hi#it A* the $e&e$atetit)* ot%ith!ta$i2 a$ i !"ite o& the "laiti(=! i!i!tet o""o!itio* ha!a!!+,e$ the 'har2e o& li4+i$ati2 the &ertilii2 #+!ie!!* %itho+t hai2re$ere$ a ,othl) a''o+t o& the !tate o& the li4+i$atio* a! re4+ire$ #)la%* there#) 'a+!i2 the "laiti( $a,a2e!.

@I. That the $a,a2e! !+!taie$ #) the "laiti(* a! %ell a! the a,o+t o& hi!!hare i the re,aii2 "ro"ert) o& the #+!ie!!* a&ter it! e3"iratio* are%holl) +o% to the "laiti(* a$ ,a) ol) #e tr+l) a$ 'orre'tl)

a!'ertaie$ #) 'o,"elli2 the $e&e$at! . M. Mei a$ P. C. S'hlo#oh, to$e'lare +$er oath a$ e3"lai to the 'o+rt i $etail the !+,! o#taie$ &ro,the !ale o& the re,aii2 ,er'ha$i!e* a&ter the e3"iratio o& the"arter!hi" 'otra't.

@II. That a&ter the 'otra't E3hi#it A ha$ e3"ire$* the $e&e$at 'oti+e$ to+!e &or it! o% #ee0t the 2oo$-%ill a$ tra$e ,ar! #elo2i2 to the"arter!hi"* a! %ell a! it! tra!"ortatio e4+i",et a$ other ,a'hier)*there#) i$i'ati2 it! itetio to retai !+'h 2oo$-%ill* tra$e. ,ar!*tra!"ortatio e4+i",et a$ ,a'hier)* &or the ,a+&a't+re o& &ertilier!*#) irt+e o& %hi'h the $e&e$at i! #o+$ to "a) the "laiti( / "er 'et o&

the al+e o& !ai$ "ro"ert).

@III. That the tr+e al+e o& the tra!"ortatio e4+i",et a$ ,a'hier)e,"lo)e$ i the "re"aratio o& the &ertilier! a,o+t! to P6** / "er'et o& %hi'h a,o+t! to P*.

I. That the "laiti( ha! re"eate$l) $e,a$e$ that the $e&e$at etit)re$er a tr+e a$ $etaile$ a''o+t o& the !tate o& the li4+i$atio o& the


17/27

"arter!hi" #+!ie!!* #+t !ai$ $e&e$at ha! i2ore$ !+'h $e,a$!* !o thatthe "laiti( $oe! rot* at thi! $ate* o% %hether the li4+i$atio o& the#+!ie!! ha! #ee 0i!he$* or %hat the !tat+! o& it i! at "re!et.

Where&ore* the "laiti( "ra)! the Hoora#le Co+rt

>1. To or$er the $e&e$at! . M. Mei a$* P. C. S'hlo#oh, to re$er a tr+ea$ $etaile$ a''o+t o& the !tat+! o& the #+!ie!! i li4+i$atio* that i!* &ro,A"ril 69* 1:6* +til it i! 0i!he$* or$eri2 all the $e&e$at! to "a) the"laiti( 5oitl) a$ !eerall) / "er'et o& the et a,o+t.

>6. To or$er the $e&e$at! to "a) the "laiti( 5oitl) a$ !eerall) thea,o+t o& P/** %hi'h i! / "er'et o& the al+e o& the 2oo$%ill a$ thetra$e ,ar! o& the &ertilier #+!ie!!;

>. To or$er the $e&e$at! to "a) the "laiti( 5oitl) a$ !eerall) the

a,o+t o& P** %hi'h i! / "er'et o& the al+e o& the tra!"ortatioe4+i",et a$ ,a'hier) o& the #+!ie!!; a$

>?. To or$er the $e&e$at! to "a) the 'o!t! o& thi! trial* a$ &+rther* to 2rata) other re,e$) that thi! Hoora#le Co+rt ,a) $ee, 5+!t a$ e4+ita#le.>

De&e$at! alle2e$


6. That the 2oo$-%ill* i& a)* o& the !ai$ &ertilier #+!ie!! o& the $e&e$at*Mei Co.* I'.* "ertai! e3'l+!iel) to it* a$ the "laiti( 'a hae oitere!t therei o& a) at+re +$er hi! !ai$ e,"lo),et a2ree,et; thatthe tra$e-,ar! ,etioe$ #) the "laiti( i hi! a,e$e$ 'o,"lait* a! a"art o& !+'h 2oo$-%ill* #elo2e$ to a$ hae #ee +!e$ #) the !ai$ Mei Co.* I'.* i it! &ertilier #+!ie!! &ro, a$ !i'e it! or2aiatio* a$ the"laiti( 'a hae o ri2ht! to or itere!t therei +$er hi! !ai$ e,"lo),eta2ree,et; that the tra!"ortatio e4+i",et "ertai! to the &ertilier$e"art,et o& Mei Co.* I'.* a$ %heeer it ha! #ee +!e$ #) the !ai$Mei Co.* I'** i it! o% #+!ie!!* $+e a$ rea!oa#le 'o,"e!atio &or

it! +!e ha! #ee allo%e$ to !ai$ #+!ie!!; that the ,a'hier) "ertaii2 tothe !ai$ &ertilier #+!ie!! %a! $e!tro)e$ #) 0re i O'to#er* 1:67* a$ theal+e thereo& i the !+, o& P6* %a! 'olle'te$ &ro, the I!+ra'eCo,"a)* a$ the "laiti( ha! #ee 2ie 're$it &or / "er'et o& thata,o+t; that the "re!et ,a'hier) +!e$ #) Mei Co.* I'.* %a!'o!tr+'te$ #) it* a$ the 'o!t! thereo& %a! ot 'har2e$ to the &ertilier$e"art,et* a$ the "laiti( ha! o ri2ht to hae it tae ito 'o!i$eratioi arrii2 at the et "ro0t! $+e to hi, +$er hi! !ai$ e,"lo),et


18/27

a2ree,et.

The $i!"o!itie "art o& the $e'i!io o& the trial 'o+rt i! a! &ollo%!

>Where&ore* let 5+$2,et #e etere$

>8a Hol$i2 that the 'otra't etere$ ito #) the "artie!* ei$e'e$ #)E3hi#it A* i! a 'otra't o& 2eeral re2+lar 'o,,er'ial "arter!hi"* %hereiMei Co.* I'.* %a! the 'a"itali!t* a$ the "laiti(* the i$+!trial "arter;

>8# Hol$i2 that the "laiti(* #) the ,ere &a't o& hai2 !i2e$ a$a""roe$ the #ala'e !heet!* E3hi#it! C to C-9* i! ot e!to""e$ &ro,4+e!tioi2 the !tate,et! o& a''o+t! therei 'otaie$;

>8' Or$eri2 Mei Co.* I'.* +"o the !e'o$ 2ro+$ o& a'tio* to "a) the"laiti( the !+, o& P7*9/.7 %ith le2al itere!t &ro, the $ate o& the 0li2

o& the ori2ial 'o,"lait +til "ai$;

>8$ Di!,i!!i2 the thir$ 'a+!e o& a'tio;

>8e Or$eri2 Mei Co.* I'.* +"o the &o+rth 'a+!e o& a'tio* to "a) the"laiti( the !+, o& P*961.?1* %ith le2al itere!t &ro, the $ate o& the 0li2 o&the ori2ial 'o,"lait +til "ai$;

>8& Di!,i!!i2 the 0&th 'a+!e o& a'tio;

>82 Di!,i!!i2 the !i3th 'a+!e o& a'tio;

>8h Di!,i!!i2 the !eeth 'a+!e o& a'tio;

>8i Or$eri2 the $e&e$at Mei Co.* I'.* +"o the ei2hth 'a+!e o&a'tio* to "a) the "laiti( the !+, o& P7*/9.9 %ith le2al itere!t &ro,a+ar) 1* 1:6:* the $ate o& the li4+i$atio o& the &ertilier #+!ie!!* +til"ai$;

>85 Or$eri2 Mei Co.* I'.* +"o the ith 'a+!e o& a'tio to "a) the"laiti( the !+, o& P1:7*:.6 %ith le2al itere!t &ro, the $ate o& the 0li2o& the ori2ial 'o,"lait +til "ai$;

>8 Or$eri2 the !ai$ $e&e$at 'or"oratio* i ie% o& the "laiti(=! !hareo& the "ro0t! o& the #+!ie!! a''r+i2 &ro, a+ar) 1* 1:6 to De'e,#er 1*1:69* to "a) the "laiti( / "er'et o& the et #ala'e !ho% i E3hi#it! /1a$ /1-A* a&ter $e$+'ti2 the ite, o& P6*?1 &or i'o,e ta3* a$ a) other!+, 'har2e$ &or itere!t +$er the etr) =P+r'ha!e!=;

>81 Or$eri2 the $e&e$at 'or"oratio* i 'oe'tio %ith the 0al


19/27

li4+i$atio !et o+t i E3hi#it! /6 a$ /6-A* to "a) the "laiti( the !+, o&P1*?7./? %ith le2al itere!t &ro, a+ar) 1* 1:6:* +til &+ll) "ai$;

>8, Di!,i!!i2 the 'a!e %ith re&ere'e to the other $e&e$at!* . M. Meia$ P. C. S'hlo#oh,; a$

> 8 Mei Co.* I'.* !hall "a) the 'o!t! o& the trial.>

The a""ellat ,ae! the &ollo%i2 a!!i2,et! o& error

>I. The trial 'o+rt erre$ i 0$i2 a$ hol$i2 that the 'otra't E3hi#it A'o!tit+te! a re2+lar 'olle'tie 'o,,er'ial 'o"arter!hi" #et%ee the$e&e$at 'or"oratio* Mei Co.* I'.* a$ the "laiti(* Fra'i!'o Ba!ti$a*a$ ot a 'otra't o& e,"lo),et.

>II. The trial 'o+rt erre$ i 0$i2 a$ hol$i2 that the $e&e$at* Mei

Co.* I'.* ha$ %ro2&+ll) 'har2e$ to the &ertilier #+!ie!! i 4+e!tio the!+, o& P1*:19. a! i'o,e ta3e! "arter!= #ala'e!* &orei2 $ra&t!* lo'al$ra&t!* a$ o other 're$it #ala'e! i the !+, o& P16*/.?:* a$ that /"er'et thereo&* or the !+, o& P7*9/.7* %ith le2al itere!t thereo &ro,the $ate o& 0li2 hi! 'o,"lait* 'orre!"o$! to the "laiti(.

>III. The trial 'o+rt erre$ i 0$i2 a$ hol$i2 that the $e&e$at* Mei Co.* I'.* ha$ %ro2&+ll) 'har2e$ to the &ertilier #+!ie!! i 4+e!tio the!+, o& P1*:19. a! i'o,e ta3e! &or the )ear! 1:6* 1:6?* 1:6/ a$1:67* a$ that the "laiti( i! etitle$ to / "er'et thereo&* or the !+, o&P*961.?1* %ith le2al itere!t thereo &ro, the $ate o& 0li2 hi! 'o,"lait*

a$ i $i!allo%i2 the ite, o& P6*?1 'har2e$ a! i'o,e ta3 i theli4+i$atio i E3hi#it! /1 a$ /1-A &or the "erio$ &ro, a+ar) 1 to A"ril 6*1:6.

>I@. The trial 'o+rt erre$ i re&+!i2 to 0$ a$ hol$ +$er the ei$e'e ithi! 'a!e that the 'otra't* E3hi#it A %a! $+ri2 the %hole "erio$ thereo&'o!i$ere$ #) the "artie! a$ "er&or,e$ #) the, a! a 'otra't o&e,"lo),et i relatio to the &ertilier #+!ie!! o& the $e&e$at* a$ thatthe a''o+t! o& !ai$ #+!ie!! %ere e"t #) the $e&e$at* Mei Co.* I'.*o that theor) %ith the o%le$2e a$ 'o!et o& the "laiti(* a$ that atthe e$ o& ea'h )ear &or 0e )ear! a #ala'e !heet a$ "ro0t a$ lo!!

!tate,et o& !ai$ #+!ie!! %ere "re"are$ &ro, the #oo! o& a''o+t o& !ai$#+!ie!! o the !a,e theor) a$ !+#,itte$ to the "laiti(* a$ that ea'h)ear !ai$ #ala'e !heet a$ "ro0t a$ lo!! !tate,et %ere e3a,ie$*a""roe$ a$ !i2e$ #) !ai$ "laiti( a$ he %a! "ai$ the a,o+t $+e hi,+$er !ai$ 'otra't i a''or$a'e there%ith %ith &+ll o%le$2e o& the,aer i %hi'h !ai$ #+!ie!! %a! 'o$+'te$ a$ the 'har2e! &or itere!ta$ i'o,e ta3e! ,a$e a2ai!t the !a,e a$ that #) rea!o o& !+'h &a't!*the "laiti( i! o% e!to""e$ &ro, rai!i2 a) 4+e!tio a! to the at+re o&


20/27

!ai$ 'otra't or the "ro"riet) o& !+'h 'har2e!.

>@. The trial 'o+rt erre$ i 0$i2 a$ hol$i2 that the "laiti(* Fra'i!'oBa!ti$a* i! etitle$ to / "er'et o& the et "ro0t! i the !+, o& P19*:/.9re'eie$ #) the $e&e$at* Mei Co.* I'.* &ro, it! 'otra't %ith the

Co,"aia @I. The trial 'o+rt erre$ i 0$i2 a$ hol$i2 that the al+e o& the 2oo$-%illo& the &ertilier #+!ie!! i 4+e!tio %a! P/76*16* a$ that the "laiti(*Fra'i!'o Ba!ti$a* %a! etitle$ to / "er'et o& !+'h al+atio* or the !+, o&P1:7*:.6* %ith le2al itere!t thereo &ro, the $ate o& 0li2 hi! 'o,"lait.

>@II. The trial 'o+rt erre$ i re$eri2 5+$2,et i &aor o& the "laiti( a$a2ai!t the $e&e$at* Mei Co.* I'.* 8a o the !e'o$ 'a+!e o& a'tio*

&or the !+, o& P7*9/.7* %ith le2al itere!t thereo &ro, the $ate o& 0li2the 'o,"lait; 8# o the &o+rth 'a+!e o& a'tio* &or the !+, o& P*961.?1*%ith le2al itere!t thereo &ro, the $ate o& 0li2 the 'o,"lait; 8' o theei2hth 'a+!e o& a'tio* &or the !+, o& P7*/9.9* %ith le2al itere!t thereo&ro, a+ar) 1* 1:6:; a$ 8$ o the ith 'a+!e o& a'tio* &or the !+, o&P1:7*:.6* %ith le2al itere!t thereo &ro, the $ate o& 0li2 the ori2ial'o,"lait; a$ 8e &or the 'o!t! o& the a'tio* a$ i ot a""roi2 the 0alli4+i$atio o& !ai$ #+!ie!!* E3hi#it! /1 a$ /1-A a$ /6 a$ /6-A* a! tr+ea$ 'orre't* a$ eteri2 5+$2,et a2ai!t !ai$ $e&e$at ol) &or thea,o+t! a$,itte$ therei a! $+e the "laiti( %ith le2al itere!t* %ith the'o!t! a2ai!t the "laiti(.

>@III. The trial 'o+rt erre$ i oerr+li2 the $e&e$at!= ,otio &or a e%trial.>

It a""ear! &ro, the ei$e'e that the $e&e$at 'or"oratio %a! or2aie$i 1:61 &or the "+r"o!e o& i,"orti2 a$ !elli2 2eeral ,er'ha$i!e*i'l+$i2 &ertilier! a$ &ertilier i2re$iet!. It a'4+ire$ thro+2h ohBor$,a a$ the Mei-Bor$,a Co. the 2oo$-%ill* tra$e-,ar!* #+!ie!!*a$ other a!!et! o& the ol$ ARADO>* >Ho>* a$ >CORONA>. The) %ere re2i!tere$ i the B+rea+ o&Co,,er'e a$ I$+!tr) i the a,e o& Mei Co. The tra$e-,ar!>ARADO> a$ >Ho> ha$ #ee +!e$ #) Beh* Me)er Co.* Lt$.* i the !ale o&it! ,i3e$ &ertilier!* a$ the tra$e-,ar >CORONA> ha$ #ee +!e$ i it!other #+!ie!!. The >HO> tra$e-,ar %a! +!e$ #) oh Bor$,a a$ theMei-Bor$,a Co. i the 'oti+atio o& the &ertilier #+!ie!! that ha$


21/27

#elo2e$ to Beh* Me)er Co.* Lt$.

The #+!ie!! o& Mei Co.* I'.* %a! $ii$e$ ito !eeral $i(eret$e"art,et!* ea'h o& %hi'h %a! i 'har2e o& a ,aa2er* %ho re'eie$ a03e$ !alar) a$ a "er'eta2e o& the "ro0t!. The 'or"oratio ha$ to #orro%

,oe) or o#tai 're$it! &ro, ti,e to ti,e a$ to "a) itere!t thereo. Thea,o+t "ai$ &or itere!t %a! 'har2e$ a2ai!t the $e"art,et 'o'ere$*a$ the itere!t 'har2e! %ere tae ito a''o+t i $eter,ii2 the et"ro0t! o& ea'h $e"art,et. The "ra'ti'e o& the 'or"oratio %a! to $e#it or're$it ea'h $e"art,et %ith itere!t at the #a rate o it! $ail) #ala'e.The &ertilier #+!ie!! o& Mei Co.* I'.* %a! 'arrie$ o i a''or$a'e %iththi! "ra'ti'e +$er the >S+$rie! De"art,et> +til +l)* 1:6* a$ a&ter thata! a !e"arate $e"art,et.

I Noe,#er* 1:61* the "laiti(* %ho ha$ ha$ !o,e e3"erie'e i ,i3i2a$ !elli2 &ertilier* %et to !ee Toehl* the ,aa2er o& the !+$rie!

$e"art,et o& Mei Co.* I'.* a$ tol$ hi, that he ha$ a %ritte 'otra't%ith the Phili""ie S+2ar Cetral! A2e') &or 1*6/ to! o& ,i3e$ &ertilier!*a$ that he 'o+l$ o#tai other 'otra't!* i'l+$i2 oe &ro, the Cala,#aS+2ar E!tate! &or ?/ to!* #+t that he $i$ ot hae the ,oe) to #+) thei2re$iet! to 0ll the or$er a$ 'arr) o the #+!ie!!. He o(ere$ to a!!i2 toMei Co.* I'.* hi! 'otra't %ith the Phili""ie S+2ar Cetral! A2e') a$to !+"eri!e the ,i3i2 o& the &ertilier a$ to o#tai other or$er! &or 0&t) "er'et o& the et "ro0t! that Mei Co.* I'.* ,i2ht $erie there&ro,. . M.Mei* the 2eeral ,aa2er o& Mei Co.* a''e"te$ "laiti(=! o(er. Plaiti(a!!i2e$ to Mei Co.* I'.* hi! 'otra't %ith the S+2ar Cetral! A2e')*a$ the $e&e$at 'or"oratio "ro'ee$e$ to 0ll the or$er. Plaiti( !+"eri!e$

the ,i3i2 o& the &ertilier.

Mei Co.* I'.* 'oti+e$ to 'arr) o it! &ertilier #+!ie!! +$er thi!arra2e,et %ith the "laiti(. It or$ere$ i2re$iet! &ro, the ite$ State!a$ other 'o+trie!* a$ the itere!t o the $ra&t! &or the "+r'ha!e o& the!e,aterialo %a! 'har2e$ to the #+!ie!! a! a "art o& the 'o!t o& the ,aterial!.The ,i3e$ &ertilier! %ere !ol$ #) Mei Co.* I'.* #et%ee a+ar) 1: a$A"ril 1* 1:66 +$er it! >CORONA> #ra$. Mei Co.* I'.* ha$ ol) oe #aa''o+t &or it! %hole #+!ie!!. The &ertilier #+!ie!! ha$ o !e"arate'a"ital. A &ertilier a''o+t %a! o"ee$ i the 2eeral le$2er* a$ itere!t atthe rate 'har2e$ #) the Ba o& the Phili""ie I!la$! %a! $e#ite$ or

're$ite$ to that a''o+t o the $ail) #ala'e! o& the &ertilier #+!ie!!. Thi!%a! i a''or$a'e %ith a""ellat=! e!ta#li!he$ "ra'ti'e* to %hi'h the "laiti(a!!ete$.

O or a#o+t A"ril 6?* 1:66 =the et "ro0t! o& the #+!ie!! 'arrie$ o +$erthe oral a2ree,et %ere $eter,ie$ #) Mei Co.* I'.* a&ter $e$+'ti2itere!t 'har2e!* "ro"ortioal "art o& %areho+!e ret a$ !alarie! a$%a2e!* a$ the other e3"e!e! o& !ai$ #+!ie!!* a$ the "laiti( %a! "ai$


22/27

!o,e t%et) tho+!a$ "e!o! i &+ll !ati!&a'tio o& hi! !hare o& the "ro0t!.

P+r!+at to the a&ore,etioe$ er#al a2ree,et* 'o0r,e$ #) the letter*E3hi#it B* the $e&e$at 'or"oratio o A"ril 6* 1:66 etere$ ito a %ritte'otra't %ith the "laiti(* ,are$ E3hi#it A* %hi'h i! the #a!i! o& the "re!et

a'tio.

The &ertilier #+!ie!! %a! 'arrie$ o #) Mei Co.* I'.* a&ter thee3e'+tio o& E3hi#it A i "ra'ti'all) the !a,e ,aer a! it %a! "rior thereto.The iteretio o& the "laiti( %a! li,ite$ to !+"eri!i2 the ,i3i2 o& the&ertilier! i Mei Co.=!* I'.* #o$e2a!.

The tra$e-,ar! +!e$ i the !ale o& the &ertilier %ere re2i!tere$ i theB+rea+ o& Co,,er'e I$+!tr) i the a,e o& Mei Co.* I'.* a$ the&ee! %ere "ai$ #) that 'o,"a). The) %ere ot 'har2e$ to the &ertilier#+!ie!!* i %hi'h the "laiti( %a! itere!te$. Ol) the &ee! &or re2i!teri2

the &or,+la! i the B+rea+ o& S'ie'e %ere 'har2e$ to the &ertilier #+!ie!!*a$ the total a,o+t thereo& %a! 're$ite$ to thi! #+!ie!! i the 0alli4+i$atio o A"ril 6* 1:6.

O Ma) * 1:6? the "laiti( ,a$e a 'otra't %ith Mei Co.* I'.* to&+ri!h it all the !te,! a$ !'ra"! o& to#a''o that it ,i2ht ee$ &or it!&ertilier #+!ie!! either i the Phili""ie I!la$! or &or e3"ort to other'o+trie!. Thi! 'otra't i! re&erre$ to i the re'or$ a! the >@a!ta2o Cotra't>.Mei Co.* I'.* a$a'e$ the "laiti( lar2e !+,! o& ,oe) &or #+)i2 a$i!talli2 ,a'hier)* "a)i2 the !alarie! o& hi! e,"lo)ee!* a$ othere3"e!e! i "er&or,i2 hi! 'otra't.

White* Pa2e Co.* 'erti0e$ "+#li' a''o+tat!* a+$ite$ the #oo! o& Mei Co.* I'.* eer) ,oth* a$ at the e$ o& ea'h )ear the) "re"are$ a #ala'e!heet a$ a "ro0t a$ lo!! !tate,et o& the &ertilier #+!ie!!. The!e!tate,et! %ere $eliere$ to the "laiti( &or e3a,iatio* a$ a&ter he ha$ha$ a o""ort+it) o& eri&)i2 the, he a""roe$ the, %itho+t o#5e'tioa$ ret+re$ the, to Mei Co.* I'.

Plaiti( 'olle'te$ &ro, Mei Co.* I'.* a! hi! !hare or / "er'et o& the et"ro0t! o& the &ertilier #+!ie!! the &ollo%i2 a,o+t!

1:66-------------------------------------------------------------------- P1*9?.1:6---------------------------------------------------------------------*616.761:6?--------------------------------------------------------------------11*91./71:6/----------------------------------------------------------------------/*77/.1:67----------------------------------------------------------------------6*7?:.:9 -------------Total ------------------------------------------------------------P1:7*?9.:6


23/27

To thi! a,o+t ,+!t #e a$$e$ "laiti(=! !hare o& the et "ro0t! &ro, a+ar)1 to A"ril 6* 1:6* a,o+ti2 to P?*77.9* ,ai2 a total o& P61*6/.:.

Prior to the e3"iratio o& the 'otra't* E3hi#it A* the ,aa2er o& Mei Co.*I'.* oti0e$ the "laiti( that the 'otra't &or hi! !eri'e! %o+l$ ot #e

ree%e$.

Whe "laiti(=! 'otra't e3"ire$ o A"ril 6* 1:6* the &ertilier $e"art,eto& Mei Co.* I'.* ha$ o ha$ ,aterial! a$ i2re$iet! a$ t%o For$tr+'! o& the #oo al+e o& a""ro3i,atel) P/** a$ a''o+t! re'eia#lea,o+ti2 to P1*. There %ere 'lai,! o+t!ta$i2 a$ #ill! to "a).Be&ore the et "ro0t! 'o+l$ #e 0all) $eter,ie$* it %a! e'e!!ar) to$i!"o!e o& the ,aterial! a$ e4+i",et* 'olle't the o+t!ta$i2 a''o+t!*a$ "a) the $e#t! o& the #+!ie!!. The a''o+tat! &or Mei Co.* I'.*"re"are$ a #ala'e !heet a$ a "ro0t a$ lo!! !tate,et &or the "erio$ &ro,a+ar) 1 to A"ril 6* 1:6 a! a #a!i! o& !ettle,et* #+t the "laiti( re&+!e$

to a''e"t it* a$ 0le$ the "re!et a'tio.

Mei Co.* I'.* the "ro'ee$e$ to li4+i$ate the &ertilier #+!ie!! i4+e!tio. I O'to#er* 1:6 it "ro"o!e$ to the "laiti( that the ol$ a$$a,a2e$ !to'! o ha$ hai2 a #oo al+e o& P?** %hi'h the$e&e$at 'or"oratio ha$ #ee +a#le to $i!"o!e o&* #e !ol$ at "+#li' or"riate !ale* or $ii$e$ #et%ee the "artie!. The "laiti( re&+!e$ to a2ree tothi!. The $e&e$at 'or"oratio the a""lie$ to the trial 'o+rt &or a or$er &orthe !ale o& the re,aii2 "ro"ert) at "+#li' a+'tio* #+t a""aretl) the 'o+rt$i$ ot a't o the "etitio.

The ol$ !to'! %ere tae oer #) Mei Co.* I'.* a$ the 0al li4+i$atioo& the &ertilier #+!ie!! %a! 'o,"lete$ i De'e,#er* 1:69* a$ a 0al#ala'e !heet a$ a "ro0t a$ lo!! !tate,et %ere !+#,itte$ to the "laiti($+ri2 the trial. D+ri2 the li4+i$atio the #oo! o& Mei Co.* I'.* &or the%hole "erio$ o& the 'otra't i 4+e!tio %ere rea+$ite$ #) White* Pa2e Co.* 'ertai error! o& #ooee"i2 %ere $i!'oere$ #) the,. A&ter ,ai2the 'orre'tio! the) &o+$ the #ala'e $+e the "laiti( to #e P61*7.6.

Plaiti( e,"lo)e$ a 'erti0e$ "+#li' a''o+tat* @ero Tho,"!o* toe3a,ie the #oo! a$ o+'her! o& Mei Co. Tho,"!o a!!+,e$ the"laiti( a$ Mei Co.* I'.* to #e "arter!* a$ that Mei Co.* I'.* %a!

o#li2e$ to &+ri!h &ree o& 'har2e all the 'a"ital the "arter!hi" !ho+l$ ee$.He at+rall) rea'he$ er) $i(eret 'o'l+!io! &ro, tho!e o& the a+$itor! o&Mei Co.* I'.

We 'o,e o% to a 'o!i$eratio o& a""ellat=! a!!i2,et! o& error. A&ter'o!i$eri2 the ei$e'e a$ the ar2+,et! o& 'o+!el* %e are +ai,o+!l)o& the o"iio that +$er the &a't! o& thi! 'a!e the relatio!hi" e!ta#li!he$#et%ee Mei Co. a$ the "laiti( #) the 'otra't* E3hi#it A* %a! ot that


24/27

o& "arter!* #+t that o& e,"lo)er a$ e,"lo)ee* %here#) the "laiti( %a! tore'eie / "er'et o& the et "ro0t! o& the &ertilier #+!ie!! o& Mei Co.*I'.* i 'o,"e!atio &or hi! !eri'e! o& !+"eri!i2 the ,i3i2 o& the&ertilier!. Neither the "roi!io! o& the 'otra't or the 'o$+'t o& the"artie! "rior or !+#!e4+et to it! e3e'+tio 5+!ti0e$ the 0$i2 that it %a! a

'otra't o& 'o"arter!hi". E3hi#it A* a! a""ear! &ro, the !tate,et o& &a't!*%a! i e(e't a 'oti+atio o& the er#al a2ree,et #et%ee the "artie!*%here#) the "laiti( %ore$ &or the $e&e$at 'or"oratio &or oe-hal& o& theet "ro0t! $erie$ #) the 'or"oratio &ro, 'ertai &ertilier 'otra't!.

Plaiti( %a! "ai$ hi! !hare o& the "ro0t! &ro, tho!e tra!a'tio! a&ter Mei Co.* I'.* ha$ $e$+'te$ the !a,e ite,! o& e3"e!e %hi'h he o% "rote!t!.Plaiti( eer ,a$e a) o#5e'tio to $e&e$at=! ,aer o& ee"i2 thea''o+t! or to the 'har2e!. The #+!ie!! %a! 'oti+e$ i the !a,e ,aer+$er the %ritte a2ree,et* E3hi#it A* a$ &or &o+r )ear! the "laiti( eer,a$e a) o#5e'tio. O the 'otrar) he a""roe$ a$ !i2e$ eer) )ear the

#ala'e !heet a$ the "ro0t a$ lo!! !tate,et. It %a! ol) %he "laiti(=!'otra't %a! a#o+t to e3"ire a$ the $e&e$at 'or"oratio ha$ oti0e$ hi,that it %o+l$ ot ree% it that the "laiti( #e2a to ,ae o#5e'tio!.

The trial 'o+rt relie$ o arti'le 117 o& the Co$e o& Co,,er'e* %hi'h "roi$e!that arti'le! o& a!!o'iatio #) %hi'h t%o or ,ore "er!o! o#li2atethe,!ele! to "la'e i a 'o,,o &+$ a) "ro"ert)* i$+!tr)* or a) o&the!e thi2!* i or$er to o#tai "ro0t* !hall #e 'o,,er'ial* o ,atter %hatit! 'la!! ,a) #e* "roi$e$ it ha! #ee e!ta#li!he$ i a''or$a'e %ith the"roi!io! o& thi! Co$e; #+t i the 'a!e at #ar there %a! o 'o,,o &+$*that i!* a &+$ #elo2i2 to the "artie! a! 5oit o%er! or "arter!. The

#+!ie!! #elo2e$ to Mei Co.* I'. The "laiti( %a! %ori2 &or Mei Co.* I'. I!tea$ o& re'eii2 a 03e$ !alar) or a 03e$ !alar) a$ a !,all"er'eta2e o& the et "ro0t!* he %a! to re'eie / "er'et o& the et "ro0t!a! 'o,"e!atio &or hi! !eri'e!. Mei Co.* I'.* %a! to a$a'e hi, Pa ,oth o a''o+t o& hi! "arti'i"atio i the "ro0t!. It %ill #e ote$ that o"roi!io %a! ,a$e &or rei,#+r!i2 Mei Co.* I'.* i 'a!e there !ho+l$#e o et "ro0t! at the e$ o& the )ear. It i! o% %ell !ettle$ that the ol$ r+lethat !hari2 "ro0t! a! "ro0t! ,a$e oe a "arter i! oerthro%. 8Me'he,*!e'o$ e$itio* ". 9:.

It i! o%here !tate$ i E3hi#it A that the "artie! %ere e!ta#li!hi2 a

"arter!hi" or ite$e$ to #e'o,e "arter!. e !o'ie$a$ 'o> i! +!e$ i "roi$i2 that $e&e$at'or"oratio !hall ot e2a2e i the #+!ie!! o& "re"are$ &ertilier! e3'e"t ia!!o'iatio %ith the "laiti( 8e !o'ie$a$ 'o. The &a't i! that e !o'ie$a$'o a! there +!e$ ,erel) ,ea! e re+io 'o or i a!!o'iatio %ith* a$$oe! ot 'arr) the ,eai2 o& >i "arter!hi" %ith>.


25/27

The trial 5+$2e &o+$ that the $e&e$at 'or"oratio ha$ ot al%a)!re2ar$e$ the 'otra't i 4+e!tio a! a e,"lo),et a2ree,et* #e'a+!e iit! a!%er to the ori2ial 'o,"lait it !tate$ that #e&ore the e3"iratio o&E3hi#it A it oti0e$ the "laiti( that it %o+l$ ot 'oti+e a!!o'iate$ %ithhi, i !ai$ #+!ie!!. The trial 5+$2e 'o'l+$e$ that the "hra!e >a!!o'iate$

%ith>* +!e$ #) the $e&e$at 'or"oratio* i$i'ate$ that it re2ar$e$ the'otra't* E3hi#it A* a! a a2ree,et o& 'o"arter!hi".

I the 0r!t "la'e* the 'o,"lait a$ a!%er hai2 #ee !+"er!e$e$ #) thea,e$e$ 'o,"lait a$ the a!%er thereto* a$ the a!%er to the ori2ial'o,"lait ot hai2 #ee "re!ete$ i ei$e'e a! a e3hi#it* the trial'o+rt %a! ot a+thorie$ to tae it ito a''o+t. >Where a,e$e$ "lea$i2!hae #ee 0le$* alle2atio! i the ori2ial "lea$i2! are hel$ a$,i!!i#le* #+ti !+'h 'a!e the ori2ial "lea$i2! 'a hae o e(e't* +le!! &or,all)o(ere$ i ei$e'e.> 8oe! o Ei$e'e* !e'. 6; L+'i$o !. Cal+"ita* 6Phil.* 1?9.

I the !e'o$ "la'e* altho+2h the %or$ >a!!o'iate$> ,a) #e relate$et),olo2i'all) to the S"ai!h %or$ >!o'io>* ,eai2 "arter* it $oe! ot iit! 'o,,o a''e"tatio i,"l) a) "arter!hi" relatio.

The th* 9th* a$ :th "ara2ra"h! o& E3hi#it A* %here#) the $e&e$at'or"oratio o#li2ate$ it!el& to "a) to the "laiti( / "er'et o& the et "ro0t!o& the &ertilier #+!ie!!* to a$a'e to hi, P a ,oth o a''o+t o& hi!!hare o& the "ro0t!* a$ to 2rat hi, "er,i!!io $+ri2 1:6 to a#!ethi,!el& &ro, the Phili""ie! &or ot ,ore tha oe )ear are +tterl)i'o,"ati#le %ith the 'lai, that it %a! the itetio o& the "artie! to &or, a

'o"arter!hi". @ario+! other rea!o! &or hol$i2 that the "artie! %ere ot"arter! are a$a'e$ i a""ellat=! #rie&. We $o ot $ee, it e'e!!ar) to$i!'+!! the, here. We ,erel) %i!h to a$$ that i the @a!ta2o 'otra't*E3hi#it A* the "laiti( 'learl) re'o2ie$ Mei Co.* I'.* a! the o%er! o&the &ertilier #+!ie!! i 4+e!tio.

A! to the ario+! ite,! o& e3"e!e re5e'te$ #) the trial 5+$2e* the) %ere io+r o"iio "ro"er 'har2e! a$ erroeo+!l) $i!allo%e$* a$ thi! %o+l$ #etr+e ee i& the "artie! ha$ #ee "arter!. Altho+2h Mei Co.* I'.*a2ree$ to &+ri!h the e'e!!ar) 0a'ial ai$ &or the &ertilier #+!ie!!* it $i$ot o#li2ate it!el& to 'otri#+te a) 03e$ !+, a! 'a"ital or to $e&ra) at it!

o% e3"e!e. the 'o!t o& !e'+ri2 the e'e!!ar) 're$it. So,e o& the'otetio! o& the "laiti( a$ hi! e3"ert %ite!! Tho,"!o are !o o#io+!l)%itho+t ,erit a! ot to ,erit !erio+! 'o!i$eratio. For i!ta'e* the)o#5e'te$ to the itere!t 'har2e! o $ra&t &or ,aterial! "+r'ha!e$ a#roa$.Their 'otetio i! that the 'or"oratio !ho+l$ hae &+ri!he$ the ,oe) to"+r'ha!e the!e ,aterial! &or 'a!h* oerlooi2 the &a't that the itere!t %a!a$$e$ to the 'o!t "ri'e* a$ that the "laiti( %a! =ot "re5+$i'e$ #) the"ra'ti'e 'o,"laie$ o&. It %a! al!o +r2e$* a$ thi! !ee,! to +! the hei2ht o&


26/27

a#!+r$it)* that the $e&e$at 'or"oratio !ho+l$ hae &+ri!he$ &ree o&'har2e !+'h 0a'ial a!!i!ta'e a! %o+l$ hae ,a$e it +e'e!!ar) to$i!'o+t '+!to,er!= ote!* there#) ea#li2 the #+!ie!! to rea" theitere!t. I other %or$!* the $e&e$at 'or"oratio !ho+l$ hae ea#le$ the&ertilier $e"art,et to $o #+!ie!! o a 're$it i!tea$ o& a 'a!h #a!i!.

The 'har2e! o% 'o,"laie$ o&* a! %e hae alrea$) !tate$* are the !a,e a!tho!e ,a$e +$er the er#al a2ree,et* +"o the ter,iatio o& %hi'h the"artie! ,a$e a !ettle,et; the 'har2e! i 4+e!tio %ere a'4+ie!'e$ i #)the "laiti( &or )ear!* a$ it i! o% too late &or hi, to 'ote!t the,. The$e'i!io o& thi! 'o+rt i the 'a!e o& Krie$t !. E. C. M'C+llo+2h Co. 8Phil.* ??* i! i "oit. A "ortio o& the !)lla#+! o& that 'a!e rea$! a! &ollo%!

>1. CONTRACTS; INTERPRETATION; CONTEMPORANEOS ACTS OF PARTIES.-A't! $oe #) the "artie! to a 'otra't i the 'o+r!e o& it! "er&or,a'e area$,i!!i#le i ei$e'e +"o the 4+e!tio o& it! ,eai2* a! #ei2 their o%

'ote,"oraeo+! iter"retatio o& it! ter,!.

>6. ID.; ID.; ACTION OF PARTIES NDER PRIOR CONTRACT.- I a a'tio +"oa 'otra't 'otaii2 a "roi!io o& $o+#t&+l a""li'atio it a""eare$ that+$er a !i,ilar "rior 'otra't the "artie! ha$* +"o the ter,iatio o& !ai$'otra't* a$5+!te$ their ri2ht! a$ ,a$e a !ettle,et i %hi'h the $o+#t&+l'la+!e ha$ #ee 2ie e(e't i 'o&or,it) %ith the iter"retatio "la'e$thereo #) oe o& the "artie!. Hel$ That thi! a'tio o& the "artie! +$er the"rior 'otra't 'o+l$ "ro"erl) #e 'o!i$ere$ +"o the 4+e!tio o& theiter"retatio o& the !a,e 'la+!e i the later 'otra't.

>. ID.; ID.; ACIESCENCE.-Where oe o& the "artie! to a 'otra'ta'4+ie!'e! i the iter"retatio "la'e$ #) the other +"o a "roi!io o&$o+#t&+l a""li'atio* the "art) !o a'4+ie!'i2 i! #o+$ #) !+'hiter"retatio.

>?. ID.; ID.; ILLSTRATION.-Oe o& the "artie! to a 'otra't* #ei2 a%are atthe ti,e o& the e3e'+tio thereo& that the other "la'e$ a 'ertaiiter"retatio +"o a "roi!io o& $o+#t&+l a""li'atio* eerthele!!"ro'ee$e$* %itho+t rai!i2 a) 4+e!tio +"o the "oit* to "er&or, the!eri'e! %hi'h he %a! #o+$ to re$er +$er the 'otra't. "o theter,iatio o& the 'otra't #) ,+t+al 'o!et a 4+e!tio %a! rai!e$ a! to

the "ro"er iter"retatio o& the $o+#t&+l "roi!io. Hel$ That the "art)rai!i2 !+'h 4+e!tio ha$ a'4+ie!'e$ i the iter"retatio "la'e$ +"o the'otra't #) the other "art) a$ %a! #o+$ there#).>

The trial 'o+rt hel$ that the "laiti( %a! etitle$ to P7*/9.9 or / "er 'eto& the et "ro0t! $erie$ #) Mei Co.* I'.* &ro, it! 'otra't &or &ertilier!%ith the Ta#a'alera. Thi! 0$i2 i o+r o"iio i! ot 5+!ti0e$ #) the


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ei$e'e. Thi! 'otra't %a! o#taie$ #) Mei Co.* I'.* !hortl) #e&ore"laiti(=! 'otra't %ith the $e&e$at 'or"oratio e3"ire$. Plaiti( trie$ to2et the Ta#a'alera 'otra't &or hi,!el&. Whe thi! 'otra't %a! 0lle$* "laiti(ha$ 'ea!e$ to %or &or Mei Co.* I'.* a$ he ha! o ri2ht to "arti'i"ate ithe "ro0t! $erie$ there&ro,.

A""ellat=! !i3th a!!i2,et o& error i! that the trial 'o+rt erre$ i 0$i2 theal+e o& the 2oo$-%ill o& the &ertilier #+!ie!! i 4+e!tio to #e P/76*16*a$ that the "laiti( %a! etitle$ to / "er 'et thereo& or P1:7*:.6. Irea'hi2 thi! 'o'l+!io the trial 'o+rt +&ort+atel) relie$ o the o"iio o&the a''o+tat* @ero Tho,"!o* %ho a!!+,e$* erroeo+!l) a! %e hae!ee* that the "laiti( a$ Mei Co.* I'.* %ere "arter!; #+t ee i& the)ha$ #ee "arter! there %o+l$ hae #ee o 2oo$-%ill to $i!"o!e o&. The$e&e$at 'or"oratio ha$ a &ertilier #+!ie!! #e&ore it etere$ ito a)a2ree,et %ith the "laiti(; "laiti(=! a2ree,et %a! &or a 03e$ "erio$* 0e)ear!* a$ $+ri2 that ti,e the #+!ie!! %a! 'arrie$ o i the a,e o& Mei

Co.* I'.* a$ i Mei Co.=! %areho+!e! a$ a&ter the e3"iratio o&"laiti(=! 'otra't Mei Co.* I'.* 'oti+e$ it! &ertilier #+!ie!!* a! it ha$a "er&e't ri2ht to $o. There %a! reall) othi2 to %hi'h a) 2oo$-%ill 'o+l$atta'h. Plaiti( ,aitai!* ho%eer* that the tra$e-,ar! +!e$ i the&ertilier #+!ie!! $+ri2 the ti,e that he %a! 'oe'te$ %ith it a'4+ire$2reat al+e* a$ that the) hae #ee a""ro"riate$ #) the a""ellat to it!o% +!e. That !ee,! to #e the ol) #a!i! o& the alle2e$ 2oo$-%ill* to %hi'h a&a#+lo+! al+atio %a! 2ie. A! %e hae !ee* the tra$e,ar! %ere ote%. The) ha$ #ee +!e$ #) Beh* Me)er Co. i it! #+!ie!! &or other2oo$! a$ oe o& the, &or &ertilier. The) #elo2e$ to Mei Co.* I'.* a$%ere re2i!tere$ i it! a,e; ol) the e3"e!e o& re2i!teri2 the &or,+la! i

the B+rea+ o& S'ie'e %a! 'har2e$ to the #+!ie!! i %hi'h the "laiti( %a!itere!te$. The!e tra$e,ar! re,aie$ the e3'l+!ie "ro"ert) o& Mei Co.* a$ the "laiti( ha$ o itere!t therei o the e3"iratio o& hi! 'otra't.

The #ala'e $+e the "laiti(* a! a""ear! &ro, E3hi#it /6* i! P61*7.6. Weare !ati!0e$ #) the ei$e'e that !ai$ #ala'e i! 'orre't.

For the &ore2oi2 rea!o!* the $e'i!io a""eale$ &ro, i! ,o$i0e$ a$ the$e&e$at 'or"oratio i! !ete'e$ to "a) the "laiti( t%et)-oe tho+!a$*!i3 h+$re$ a$ thirt)three "e!o! a$ t%et) 'etao! 8P61*7.6* %ithle2al itere!t thereo &ro, the $ate o& the 0li2 o& the 'o,"lait or +e 1*

1:6* %itho+t a !"e'ial 0$i2 a! to 'o!t!.

+!ti'e H+ll "arti'i"ate$ i thi! 'a!e* #+t o a''o+t o& hi! a#!e'e o leaeat the ti,e o& the "ro,+l2atio o& the $e'i!io he a+thorie$ the+$er!i2e$ to 'erti&) that he ote$ to ,o$i&) the $e'i!io o& the trial 'o+rta! a""ear! i the &ore2oi2 $e'i!io o& thi! 'o+rt.-@ILLAMOR* .* Pre!i$i2.+$2,et ,o$i0e$.

Bastida Vs

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