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On May 4,the SEC rendered judgment in favor of respondent, ordering the Iglesia ng Dios Kay Kristo Hesus, Haligi at Saligan ng Katotohanan to change its corporate name to another name that is not similar or identical to any name already used by a corporation, partnership or association registered with the Commission.
The contention is without merit. The dispositive portion thereof reads: Garaygay moved for reconsideration and lifting of the order of default. Certainly, ordering petitioner to change its corporate name is not a violation of its constitutionally guaranteed right to religious freedom.
The factual antecedents of the case at bar are different. When his client was declared in default, the counsel did nothing and allowed the judgment by default to become final and executory.
Garaygay filed before the SEC a motion to dismiss on the ground of lack of cause of action. It is the duty of the SEC to prevent confusion in the use of corporate names not only for the protection of the corporations involved but more so for the protection of the public.
The motion to dismiss was denied. As a general rule, the negligence of counsel binds the client. Court of Appeals,  petitioner insists that the decision of the Court of Appeals and the SEC should be set aside because the negligence of its former counsel of record, Atty. This Court found the counsel grossly negligent and consequently declared as null and void the decision adverse to his client.
We agree with the Court of Appeals conclusion that a contrary ruling would encourage other corporations to adopt verbatim and register an existing and protected corporate name, to the detriment of the public.
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Upon the insistence of his client, the counsel filed a petition to annul the judgment with the Court of Appeals, which denied the petition, and again the counsel allowed the denial to become final and executory.
When his client was declared in default for failure to file an answer, Atty. Petitioners motion for reconsideration was denied by the Court of Appeals on February 16, Universal Textile Mills, Inc. Petitioner filed a motion to dismiss on the ground of lack of cause of action.
This is especially so, since both petitioner and respondent corporations are using the same acronym — H. When a change in the corporate name is approved, the Commission shall issue an amended certificate of incorporation under the amended name.
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Although he failed to file an answer that led to the rendition of a judgment by default against petitioner, his efforts were palpably real, albeit bereft of zeal. Joaquin Garaygay, in failing to file an answer after its motion to dismiss was denied by the SEC, deprived them of their day in court.
Hence, this case is on all fours with Universal Mills Corporation v.
Parenthetically, it is well to mention that the acronym H. These words are synonymous — both mean ground, foundation or support.
The fact that there are other non-stock religious societies or corporations using the names Church of the Living God, Inc. Sometime inone Eliseo Soriano and several other members of respondent corporation disassociated themselves from the latter and succeeded in registering on March 30, a new non-stock religious society or corporation, named Iglesia ng Dios Kay Kristo Hesus, Haligi at Saligan ng Katotohanan.
These words can hardly serve as an effective differentiating medium necessary to avoid confusion or difficulty in distinguishing petitioner from respondent. In so doing, the SEC merely compelled petitioner to abide by one of the SEC guidelines in the approval of partnership and corporate names, namely its undertaking to manifest its willingness to change its corporate name in the event another person, firm, or entity has acquired a prior right to the use of the said firm name or one deceptively or confusingly similar to it.
On November 20,the SEC rendered a decision ordering petitioner to change its corporate name.
Its failure to raise prescription before the SEC can only be construed as a waiver of that defense. Hence, the instant petition for review, raising the following assignment of errors: Thereafter, for failure to file an answer, petitioner was declared in default and respondent was allowed to present its evidence ex parte.
Court of Appeals, the effort of the counsel in defending his clients cause consisted in filing a motion for extension of time to file answer before the trial court.
Garaygay was only guilty of simple negligence. This is based on the rule that any act performed by a lawyer within the scope of his general or implied authority is regarded as an act of his client.
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