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Clarie Elaine C. Mendoza AC301 ASJ CORPORATION and ANTONIO SAN JUAN (petitioners) vs. SPS. EFREN & MAURA EVANGELISTA (respondents), G.R. No. 158086, February 14, 2008 FACTS: * Respondents, under the name of R.M. Sy Chicks, are into the business of buying broiler and selling them later on as chicks and other by-products. They contracted with ASJ Corporation, registered in the name of San Juan and his family, for the hatchery services that the latter offers. They agreed at a service fee of 80 cents for every egg, whether or not it successfully hatched. The respondents then delivered eggs to the petitioners and each delivery is recorded in a “Setting Report”. During the first transactions, respondents were able to pay their account during the release of the products but as their transaction went, respondents weren’t able to settle their accounts on time and it was tolerated by the petitioners. * The petitioners refused to release the products covered by Setting Report No. 109 but San Juan still accepted eggs covered by Setting No. 113 and partial payment of P 15 000.00 for partial payment of the accrued fees. When respondent Efren went to the hatchery at a later date to pick up the products covered by Setting No. 109, San Juan again refused. On the same day, Maura, together with her son, tendered payment to San Juan and tried to pick up the products. San Juan accepted the payment and insisted the full payment before giving the chicks and by-products. Maura asked for proper accounting by San Juan, which he disliked so he threatened them if they return without the full settlement of their account. * They both tried to settle disputes before the courts but nothing happened. Respondent therefore filed a complaint with the RTC for withholding products from Setting Report Nos. 108-113. RTC findings were in favor of R.M. Sy Chicks. They found that
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