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CA
Respondents then filed for issuance of an alias writ to hold Export and
Industry Bank liable because EIB Securities is a wholly-owned controlled
and dominated subsidiary of Export snd Industry Bank, and is thus a mere
alter ego and business conduit.
RTC ruled that E-securities is a mere business conduit of Export Bank and
pierced the veil of corporate fiction.
CA issued 60-day TRO enjoining the execution of the RTC orders granting
ther alias writ. Then they issued writ of preliminary injunction. Then they
ruled in the merits, saying that the alter ego theory cannot be sustained
because ownership by a parent corporation of a subsidiary is not enough
justification to pierce the veil. Proof must be shown, apart from mere
ownership, that Export Bank misused the corporate fiction of E-Securities.
Mere interlocking of directors not enough
Export Bank does not have complete control over business policies
and affairs
They went to the SC.
Issue: W/N CA erred in ruling that alter ego doctrine is inapplicable NO.
CA is correct.
Export Bank argues that it was never impleaded in the earlier case
between E-Securities and Pacific Rehouse.
In this case, Export Bank was not served with summons, nor voluntarily
appeared before the court.
Export Bank has consistently disputed RTC jurisdiction by filing of
Omnibus Motion by way of special appearance
It was not pleaded as a party
It was never served with summons
It did not voluntarily appear before RTC