EXPERT TRAVEL &TOURS v. CA

FACTS: Korean Airlines, a corporation established and registered in the Republic of South Korea and licensed to do business in the Philippines, through their appointed counsel Atty. Aguinaldo filed a complaint against Expertravel and Tours (ETI) for a collection of sum of money. The verification and certification against forum shopping was signed by Atty. Aguinaldo, who indicated therein that he was the resident agent and legal counsel of KAL and had caused the preparation of the complaint.

In the course of the proceeding a special teleconference occurred and it is alleged that the general manager and counsel attended such meeting and it is further alleged the board of directors approved a resolution authorizing Atty. Aguinaldo to execute the certificate of non-forum shopping and to file the complaint. Suk Kyoo Kim, the general manager of KAL also alleged, however, that the corporation had no written copy of the aforesaid resolution. ETI now challenge the authority of the appointed counsel to sign for the certification against non-forum shopping.

ISSUE: Whether or not a special teleconference would authorize Atty. Aguinaldo to certify a certification against non-forum shopping

HELD: Petition GRANTED.

In this age of modern technology, the courts may take judicial notice that business transactions may be made by individuals through teleconferencing. Although it may be easier to communicate via teleconferencing, it may also be easier to miscommunicate. Teleconferencing cannot satisfy the individual needs of every type of meeting. In the Philippines, teleconferencing and videoconferencing of members of board of directors of private corporations is a reality, in light of Republic Act No. 8792. The Securities and Exchange Commission issued SEC Memorandum Circular No. 15, on November 30, 2001, providing the guidelines to be complied with related to such conferences. Thus, the Court agrees with the RTC that persons in the Philippines may have a teleconference with a group of persons in South Korea relating to business transactions or corporate governance.

ADDTNL NOTES:

TELECONFERENCING

Teleconferencing is interactive group communication (three or more people in two or more locations) through an electronic medium. 

This type of group communication may be used in a number of ways, and have three basic types: 

(1) video conferencing - television-like communication augmented with sound; 

(2) computer conferencing - printed communication through keyboard terminals, and 

(3) audio-conferencing-verbal communication via the telephone with optional capacity for telewriting or telecopying.19

ADVANTAGES

1. People (including outside guest speakers) who wouldn’t normally attend a distant FTF meeting can participate.

2. Follow-up to earlier meetings can be done with relative ease and little expense.

3. Socializing is minimal compared to an FTF meeting; therefore, meetings are shorter and more oriented to the primary purpose of the meeting.

4. Some routine meetings are more effective since one can audio-conference from any location equipped with a telephone.

5. Communication between the home office and field staffs is maximized.

6. Severe climate and/or unreliable transportation may necessitate teleconferencing.

7. Participants are generally better prepared than for FTF meetings.

8. It is particularly satisfactory for simple problem-solving, information exchange, and procedural tasks.

9. Group members participate more equally in well-moderated teleconferences than an FTF meeting.21

DISADVANTAGES

1. Technical failures with equipment, including connections that aren’t made.

2. Unsatisfactory for complex interpersonal communication, such as negotiation or bargaining.

3. Impersonal, less easy to create an atmosphere of group rapport.

4. Lack of participant familiarity with the equipment, the medium itself, and meeting skills.

5. Acoustical problems within the teleconferencing rooms.

6. Difficulty in determining participant speaking order; frequently one person monopolizes the meeting.

7. Greater participant preparation time needed.

8. Informal, one-to-one, social interaction not possible.