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Yun Kwan Byung v. PAGCOR

The Supreme Court denied the petition of a Korean national seeking redemption of gambling chips worth $2.1 million from PAGCOR. PAGCOR argued it was not liable as the petitioner was a junket player of ABS Corp, which had an agreement to bring foreign players to PAGCOR casinos. The Court held that no implied agency existed between PAGCOR and ABS Corp since PAGCOR did not hold out ABS Corp as its agent and did not mislead the public to believe there was an agency relationship. There was also no apparent authority since PAGCOR did not clothe ABS Corp with any indicia of authority to represent it.

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182 views1 page

Yun Kwan Byung v. PAGCOR

The Supreme Court denied the petition of a Korean national seeking redemption of gambling chips worth $2.1 million from PAGCOR. PAGCOR argued it was not liable as the petitioner was a junket player of ABS Corp, which had an agreement to bring foreign players to PAGCOR casinos. The Court held that no implied agency existed between PAGCOR and ABS Corp since PAGCOR did not hold out ABS Corp as its agent and did not mislead the public to believe there was an agency relationship. There was also no apparent authority since PAGCOR did not clothe ABS Corp with any indicia of authority to represent it.

Uploaded by

Hazel P.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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G.R. No. 163553. Dec 11, 2009.

Yun Kwan Byung v. PAGCOR

MAIN TOPIC – Agency by estoppel/Doctrine of apparent authority


FACTS
 PAGCOR, a GOCC tasked to operate gambling clubs and casinos in the PH, launched its Foreign Highroller
Marketing Program. The Program aims to invite patrons from foreign countries to play at the dollar pit of
designated PAGCOR-operated casinos
 The Korean-based ABS Corp was one of the int’l groups that availed of the Program. In the Junket Agreement,
ABS Corp agreed to bring in foreign players to play at the five designated gaming tables of the Casino Filipino,
operated by PAGCOR
 Herein petitioner, a Korean national, contends that he came to the PH four times to play for high stakes at the
Casino Filipino. He claims that in the course of the games, he was able to accumulate gambling chips worth
US$2.1 Million
 He now contends that when he presented the said gambling chips for encashment w/ PAGCOR’s employees,
PAGCOR refused to redeem them. Hence, the brought an action against PAGCOR seeking redemption of the
gambling chips worth US$2.1 Million
 PAGCOR argues that petitioner, who was brought into the PH by ABS Corp, was a junket player who played in
the dollar pit exclusively leased by ABS Corp for its junket players. Thus, only ABS Corp would be liable to
petitioner for an accounting of the value of the chips to PAGCOR’s casino treasury
ISSUE
 Whether or not PAGCOR is liable to petitioner under the doctrine of implied agency or agency by estoppel
HELD
 No, PAGCOR is not liable. This is so, because PAGCOR’s acts and conduct negates the existence of an implied
agency or an agency by estoppel
 Petitioner here claims that he is a third party claiming against the liability of PAGCOR as a presumed principal of
ABS Corp
 Implied agency is derived from the acts of the principal, from his silence or lack of action, or his failure to
repudiate the agency, knowing that another person is acting on his behalf w/out authority. Implied agency is an
actual agency, and is a fact proved by deductions or inferences from other facts
 On the other hand, apparent authority is based on estoppel and can arise from two instances: (1) the principal may
knowingly permit the agent to hold himself out as having such authority, and the principal becomes estopped to
claim that the agent does not have such authority; and (2) the principal may clothe the agent w/ the indicia of
authority as to lead a reasonably prudent person to believe that the agent actually has authority. In an agency by
estoppel, there is no agency at all, but the one assuming to act as agent has apparent or ostensible, although not
real, authority to represent another
 In this case, there is no implied agency because PAGCOR did not hold out to the public as the principal of ABS
Corp. PAGCOR’s actions did not mislead the public into believing that an agency can be implied from the
arrangement w/ the junket operators, nor did it hold out ABS Corp w/ any apparent authority to represent it in any
capacity. The Junket Agreement was merely a contract of lease of facilities and services.

DISPOSITIVE PORTION
WHEREFORE, we DENY the petition.

DOCTRINE
 Implied agency is derived from the acts of the principal, from his silence or lack of action, or his failure to
repudiate the agency, knowing that another person is acting on his behalf w/out authority. Implied agency is an
actual agency, and is a fact proved by deductions or inferences from other facts
 On the other hand, apparent authority is based on estoppel and can arise from two instances: (1) the principal may
knowingly permit the agent to hold himself out as having such authority, and the principal becomes estopped to
claim that the agent does not have such authority; and (2) the principal may clothe the agent w/ the indicia of
authority as to lead a reasonably prudent person to believe that the agent actually has authority. In an agency by
estoppel, there is no agency at all, but the one assuming to act as agent has apparent or ostensible, although not
real, authority to represent another

Ponente: Carpio, J.

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