G.R. No. 189563, April 07, 2014 - GILAT SATELLITE NETWORKS, LTD., Petitioner, v. UNITED COCONUT PLANTERS BANK GENERAL INSURANCE CO., INC., Respondent.
GILAT SATELLITE NETWORKS, LTD., Petitioner, v. UNITED COCONUT PLANTERS BANK GENERAL INSURANCE CO., INC., Respondent.
This is an appeal via a Petition for Review on Certiorari 1 filed 6 November 2009 assailing the Decision2 and Resolution3 of the Court of Appeals (CA) in CA–G.R. CV No. 89263, which reversed the Decision4 of the Regional Trial Court (RTC), Branch 141, Makati City in Civil Case No. 02–461, ordering respondent to pay petitioner a sum of money.
On September 15, 1999, One Virtual placed with GILAT a purchase order for various telecommunications equipment (sic), accessories, spares, services and software, at a total purchase price of Two Million One Hundred Twenty Eight Thousand Two Hundred Fifty Dollars (US$2,128,250.00). Of the said purchase price for the goods delivered, One Virtual promised to pay a portion thereof totalling US$1.2 Million in accordance with the payment schedule dated 22 November 1999. To ensure the prompt payment of this amount, it obtained defendant UCPB General Insurance Co., Inc.’s surety bond dated 3 December 1999, in favor of GILAT.
During the period between [sic] September 1999 and June 2000, GILAT shipped and delivered to One Virtual the purchased products and equipment, as evidenced by airway bills/Bill of Lading (Exhibits “F”, “F–1” to “F–8”). All of the equipment (including the software components for which payment was secured by the surety bond, was shipped by GILAT and duly received by One Virtual. Under an endorsement dated December 23, 1999 (Exhibit “E”), the surety issued, with One Virtual’s conformity, an amendment to the surety bond, Annex “A” thereof, correcting its expiry date from May 30, 2001 to July 30, 2001.
The defendant surety to pay the plaintiff the amount of Forty Four Thousand Four Dollars and Four Cents (US$44,004.04) representing attorney’s fees and litigation expenses.
Accordingly, defendant’s counterclaim is hereby dismissed for want of merit.
Insofar as the interests were concerned, the RTC denied petitioner’s claim on the premise that while a surety can be held liable for interest even if it becomes more onerous than the principal obligation, the surety shall only accrue when the delay or refusal to pay the principal obligation is without any justifiable cause.11 Here, respondent failed to pay its surety obligation because of the advice of its principal (One Virtual) not to pay.12 The RTC then obligated respondent to pay petitioner the amount of USD1,200,000.00 representing the principal debt under the Surety Bond, with legal interest at the rate of 12% per annum computed from the time the judgment becomes final and executory, and USD44,004.04 representing attorney’s fees and litigation expenses.
WHEREFORE, this appealed case is DISMISSED for lack of jurisdiction. The trial court’s Decision dated December 28, 2006 is VACATED. Plaintiff–appellant Gilat Satellite Networks Ltd., and One Virtual are ordered to proceed to arbitration, the outcome of which shall necessary bind the parties, including the surety, defendant–appellant United Coconut Planters Bank General Insurance Co., Inc.
The CA ruled that in “enforcing a surety contract, the ‘complementary–contracts–construed–together’ doctrine finds application.” According to this doctrine, the accessory contract must be construed with the principal agreement.15 In this case, the appellate court considered the Purchase Agreement entered into between petitioner and One Virtual as the principal contract,16 whose stipulations are also binding on the parties to the suretyship.17 Bearing in mind the arbitration clause contained in the Purchase Agreement18 and pursuant to the policy of the courts to encourage alternative dispute resolution methods,19 the trial court’s Decision was vacated; petitioner and One Virtual were ordered to proceed to arbitration.
On 9 September 2008, petitioner filed a Motion for Reconsideration with Motion for Oral Argument. The motion was denied for lack of merit in a Resolution20 issued by the CA on 16 September 2009.
Whether or not petitioner is entitled to legal interest due to the delay in the fulfilment by respondent of its obligation under the Suretyship Agreement.
Petitioner alleges that arbitration laws mandate that no court can compel arbitration, unless a party entitled to it applies for this relief.23 This referral, however, can only be demanded by one who is a party to the arbitration agreement.24 Considering that neither petitioner nor One Virtual has asked for a referral, there is no basis for the CA’s order to arbitrate.
On the other hand, respondent maintains that a surety contract is merely an accessory contract, which cannot exist without a valid obligation.29 Thus, the surety may avail itself of all the defenses available to the principal debtor and inherent in the debt30 – that is, the right to invoke the arbitration clause in the Purchase Agreement.
After a thorough examination of the pieces of evidence presented by both parties,36 the RTC found that petitioner had delivered all the goods to One Virtual and installed them. Despite these compliances, One Virtual still failed to pay its obligation,37 triggering respondent’s liability to petitioner as the former’s surety. In other words, the failure of One Virtual, as the principal debtor, to fulfill its monetary obligation to petitioner gave the latter an immediate right to pursue respondent as the surety.
Consequently, we cannot sustain respondent’s claim that the Purchase Agreement, being the principal contract to which the Suretyship Agreement is accessory, must take precedence over arbitration as the preferred mode of settling disputes.
Second, Section 24 of Republic Act No. 928542 is clear in stating that a referral to arbitration may only take place “if at least one party so requests not later than the pre–trial conference, or upon the request of both parties thereafter.” Respondent has not presented even an iota of evidence to show that either petitioner or One Virtual submitted its contesting claim for arbitration.
Anent the issue of interests, petitioner alleges that it deserves to be paid legal interest of 12% per annum from the time of its first demand on respondent on 5 June 2000 or at most, from the second demand on 24 January 2001 because of the latter’s delay in discharging its monetary obligation.47 Citing Article 1169 of the Civil Code, petitioner insists that the delay started to run from the time it demanded the fulfilment of respondent’s obligation under the suretyship contract. Significantly, respondent does not contest this point, but instead argues that it is only liable for legal interest of 6% per annum from the date of petitioner’s last demand on 24 January 2001.
In rejecting petitioner’s position, the RTC stated that interests may only accrue when the delay or the refusal of a party to pay is without any justifiable cause.48 In this case, respondent’s failure to heed the demand was due to the advice of One Virtual that petitioner allegedly breached its undertakings as stated in the Purchase Agreement.49 The CA, however, made no pronouncement on this matter.
We agree with petitioner that records are bereft of proof to show that respondent’s delay was indeed justified by the circumstances – that is, One Virtual’s advice regarding petitioner’s alleged breach of obligations. The lower court’s Decision itself belied this contention when it said that “plaintiff is not disputing that it did not complete commissioning work on one of the two systems because One Virtual at that time is already in default and has not paid GILAT.”58 Assuming arguendo that the commissioning work was not completed, respondent has no one to blame but its principal, One Virtual; if only it had paid its obligation on time, petitioner would not have been forced to stop operations. Moreover, the deposition of Mr. Erez Antebi, vice president of Gilat, repeatedly stated that petitioner had delivered all equipment, including the licensed software; and that the equipment had been installed and in fact, gone into operation.59 Notwithstanding these compliances, respondent still failed to pay.
As to the issue of when interest must accrue, our Civil Code is explicit in stating that it accrues from the time judicial or extrajudicial demand is made on the surety. This ruling is in accordance with the provisions of Article 1169 of the Civil Code and of the settled rule that where there has been an extra–judicial demand before an action for performance was filed, interest on the amount due begins to run, not from the date of the filing of the complaint, but from the date of that extra–judicial demand.60 Considering that respondent failed to pay its obligation on 30 May 2000 in accordance with the Purchase Agreement, and that the extrajudicial demand of petitioner was sent on 5 June 2000,61 we agree with the latter that interest must start to run from the time petitioner sent its first demand letter (5 June 2000), because the obligation was already due and demandable at that time.
1. When the obligation is breached, and it consists in the payment of a sum of money, i.e., a loan or forbearance of money, the interest due should be that which may have been stipulated in writing. Furthermore, the interest due shall itself earn legal interest from the time it is judicially demanded. In the absence of stipulation, the rate of interest shall be 6% per annum to be computed from default, i.e., from judicial or extrajudicial demand under and subject to the provisions of Article 1169 of the Civil Code.
3. When the judgment of the court awarding a sum of money becomes final and executory, the rate of legal interest, whether the case falls under paragraph 1 or paragraph 2, above, shall be 6% per annum from such finality until its satisfaction, this interim period being deemed to be by then an equivalent to a forbearance of credit.
Applying the above–discussed concepts and in the absence of an agreement as to interests, we are hereby compelled to award petitioner legal interest at the rate of 6% per annum from 5 June 2000, its first date of extrajudicial demand, until the satisfaction of the debt in accordance with the revised guidelines enunciated in Nacar.
WHEREFORE, the Petition for Review on Certiorari is hereby GRANTED. The assailed Decision and Resolution of the Court of Appeals in CA–G.R. CV No. 89263 are REVERSED. The Decision of the Regional Trial Court, Branch 141, Makati City is REINSTATED, with MODIFICATION insofar as the award of legal interest is concerned. Respondent is hereby ordered to pay legal interest at the rate of 6% per annum from 5 June 2000 until the satisfaction of its obligation under the Suretyship Contract and Purchase Agreement.
2 Id. at 12–21; CA Decision dated 6 October 2008, penned by Associate Justice Magdangal M. De Leon and concurred in by Associate Justices Josefina Guevara–Salonga and Ramon R. Garcia.
3 Id. at 23–24; CA Resolution dated 16 September 2009.
4 Id. at 151–156; RTC Decision dated 28 December 2006 penned by Pairing Judge Dina Pestaño Teves.
“20.1. In the event of a dispute between Buyer and Seller arising out of, or relating to this Agreement, its interpretation or performance hereunder, the parties shall exert their best efforts to resolve the dispute amicably through negotiations.
25 Civil Code, Art. 1216. The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. The demand made against one of them shall not be an obstacle to those which may subsequently be directed against the others, so long as the debt has not been fully collected.
Civil Code, Art. 2047. x x x If a person binds himself solidarily with the principal debtor, the provisions of Section 4, Chapter 3, Title I of this Book shall be observed. In such case the contract is called a suretyship.
31Asset Builders Corporation, v. Stronghold Insurance Co., Inc., G.R. No. 187116, 18 October 2010, 633 SCRA 370, citing Security Pacific Assurance Corporation v. Hon. Tria–Infante, 505 Phil. 609, 620 (2005).
32 Id., citing Stronghold Insurance Company, Inc. v. Republic–Asahi Glass Corporation, 525 Phil. 270 (2006).
33Totanes v. China Banking Corporation, G.R. No. 179880, 19 January 2009, 576 SCRA 323, citing Tiu Hiong Guan v. Metropolitan Bank and Trust Company, 530 Phil. 12 (2006).
34Intra–Strata Assurance Corporation & Philippine Home Assurance Corp. v. Republic of the Philippines, 579 Phil. 631 (2008), citing 74 Am. Jur. §35, and Manila Surety & Fidelity Co, Inc. v. Batu Construction & Co., 101 Phil. 494 (1957).
35 Id., citing NASSCO v. Torrento, 126 Phil. 777 (1967); Civil Code, Article 1216.
38 G.R. Nos. 158820–21, 5 June 2009, 588 SCRA 410, 422.
40Gonzales v. Climax Mining Ltd., 541 Phil. 143 (2007). See also Manila Electric Company v. Pasay Transportation Co., 57 Phil. 600, 603 (1932).
41 Heirs of Augusto L. Salas, Jr., v. Laperal Realty Corp., 378 Phil. 369 (1999), citing Civil Code, Art. 1311.
43Totanes v. China Banking Corporation, supra note 33.
44 See International Finance Corporation v. Imperial Textile Mills, Inc., 511 Phil. 591 (2005).
45 Intra–Strata Assurance Corp. v. Republic, 579 Phil. 631 (2008), citing Manila Surety & Fidelity Co, Inc. v. Batu Construction & Co., 101 Phil. 494 (1957).
46 351 Phil. 664, 686 (1998), citing 74 Am. Jur. 2d, Principal and Surety, § 68, 53.
50Social Security System v. Moonwalk Development & Housing Corp., G.R. No. 73345, 7 April 1993, 221 SCRA 119.
51Santos Ventura Hocorma Foundation, Inc. v. Santos, 484 Phil. 447 (2004), citing IV Arturo M. Tolentino, Civil Code of the Philippines, 101 (1987 ed.).
53 Id. citing Tolentino at 102.
54 Commonwealth Insurance Corporation v. Court of Appeals, 466 Phil. 104 (2004), citing Republic vs. Court of Appeals and R & B Surety and Insurance Company, Inc., 406 Phil. 745(year?).
56 G.R. No. 190601, 7 February 2011, 641 SCRA 591, 596–597.
57 516 Phil. 725, citing FGU Insurance Corp. v. G.P. Sarmiento Trucking Corp., 435 Phil. 333, 341–342 (2002).
60Commonwealth Insurance Corporation v. Court of Appeals, supra note 54, citing Tolentino, Commentaries and Jurisprudence on the Civil Code of the Philippines, 1991 Reprint, Vol. IV, p. 103; Padilla, Civil Code Annotated, 1987 Edition, Vol. IV, p. 61.
62 G.R. No. 189871, 13 August 2013.


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With reference to the processing of your Personal Data as a consequence of your access and use of the Site, including your mere browsing of the Site, your use of the Contact and/or Customer Care section of the Site and your request to receive AGL’s newsletter, the data controller of your Personal Data is Attilio Giusti Leombruni S.p.A., with registered offices at the abovementioned address.
With reference to the processing of your Personal Data for the purchase of the Products of AGL and the related sale transactions through the e-commerce section of the Site, including your registration on the Site, the separate data controller is TRIBOO DIGITALE, in its quality of seller of the Products of AGL through the e-commerce section of the Site, with registered offices at the abovementioned address.
The provisions below illustrate the processing of your Personal Data made by AGL .
Should you wish to know which of your Personal Data is stored by AGL, please contact AGL as set forth by point 6 below.
The Site may contain links to sites of third parties that are neither controlled nor monitored by AGL. Please note that access to and use of such sites of third parties may be subject to your acceptance of the additional privacy policies provided by third-party owners, hence we recommend to carefully read said policies prior to use such sites of third parties.
With regards to browsing data, we inform you that the technological and software systems used for the operation of the Site collect, during their normal operation, certain Personal Data the transmission of which is implied in the use of Internet communication protocols. Said Personal Data are not collected to be associated with identified data subjects, but, by their own nature and through processing and association with data held by third parties, may permit your identification. This category of Personal Data includes the IP addresses or domain names of the computers that you use to access the Site, URL addresses of requested resources, time of the request, method used to submit the request to the server, size of the response file, numeric code indicating the status of the server’s response (successful, error, etc.) and other parameters concerning your operating system and technological environment.
The said Personal Data are used only to obtain anonymous statistic information on the use of the Site (e.g. number of visits) and to monitor proper operation and are deleted after processing, within the period of time set by applicable laws.
We inform you that it is possible to access and browse the Site without being requested to voluntarily provide any of your Personal Data.
With regards instead to the Personal Data that you may voluntarily provide when using the Site, we inform you that the Personal Data may indicate to subscribe to AGL’s newsletter or by means of the Contact and/or Customer Care section of the Site may include your name, surname, gender, email address, as well as information about you that is included in the messages that you may transmit to AGL.
AGL invites you not to transmit Personal Data or information that may be classified as data pertaining to special categories in pursuance of art. 9 of the GDPR (that is Personal Data that provide information about the state of health, sexual orientation, political and religious beliefs). AGL will ignore any data possibly pertaining to special categories that may be contained in the messages that you may transmit to AGL through the Contact section of the Site or by otherwise contacting AGL, unless you provide your consent in writing to the use of said data pertaining to special categories by sending a specific consent statement in accordance with the modalities set forth in point 6 below.
We invite you to read the section dedicated to the cookies used by the Site.
(c) subject to your prior consent, if such consent is required by applicable laws and it being free and optional, for marketing the purposes of studying your purchase preferences and marketing purposes, such as market and/or marketing researches, including presentations of new Products of AGL, promotions and/or product offers of AGL or of third parties in which AGL takes part, also by means of automated systems such as email (direct email marketing), facsimile, sms or MMS, market or consumer surveys researches, including the (i) transmission of newsletters and/or notices (e.g. initiatives, contests, new launches of AGL’s Products and/or sites); (ii) promotions (e.g. of AGL's Products and/or third party's products).
With the exception of browsing data, you are free to provide your Personal Data through the Site, by means of the Contact and/or Customer Care section of the Site or by requesting to receive AGL's newsletter. However, your decision not to provide said Personal Data may result in the impossibility for you to receive the service you requested with your message sent to AGL.
With regards to the processing purposes indicated at previous letters (a) and (b), your transmission of a message to AGL through the Contact and/or Customer Care section of the Site or to request the transmission of the newsletter implies that you are aware that your Personal Data will be processed for said purposes and, since such processing is aimed at the performance of the relationship established with you and/or for purposes of legal, administrative and accounting nature, your consent to said processing is not required.
With regards, instead, to the purposes indicated at previous letter (c), if applicable laws so require, you will be requested to expressly consent to the processing of Personal Data for said purposes. Your decision not to consent to the processing of your Personal Data for said purposes may result in the impossibility for you to receive the notices and/or materials as above described.
In any event, you are entitled to object at any time to the processing of your Personal Data for the purposes indicated in previous letter (c) and choose to no longer receive notices and/or materials, even if of specific interest to you.
Processing of Personal Data will be principally made by means of electronic and/or automated tools, with modalities and tools able to ensure the security and confidentiality of same, in compliance with the provisions of applicable laws. In particular, all technical, technological, organisational, logistic and procedural security measures , as provided by the GDPR, will be adopted in order to ensure the minimum level of protection required by law. The information collected and processing purposes will be pertinent to and not in excess of the type of services rendered. Your Personal Data will also be managed and protected in environments access to which is under constant monitoring.
The lieu of the processing of your Personal Data is the registered offices of AGL or, if necessary, the offices of the persons indicated at art. 5 below.
Your Personal Data collected by the Site or provided by you voluntarily as a user, will be stored by AGL for the period of time required to attain the abovementioned purposes, without prejudice to the need to store data to perform obligations deriving from applicable laws, also after completion of the processing operations.
Your Personal Data provided by you voluntarily as a user for informative purposes or for the transmission of updates and news concerning sale initiatives, contests, other advertising and promotional material, as well as to inform you about initiatives and other events, will be stored for a period of 24 months, without prejudice to the other purposes set forth by this policy that may require using the data for a longer period of time.
(c) affiliated companies, parent companies or subsidiaries of AGL, assignees and/or licensees, also of businesses and/or business units, of AGL.
The abovementioned persons will act in their quality of separate data controllers or data processors of the processing of Personal Data, as the case may be. A list of data processors is available at AGL’s offices and may be obtained upon request, by sending an email to the following email address: eboutique@agl.com.
Processing by third parties shall in any event be made in accordance with correctness applicable laws, including the GDPR.
Your Personal Data will not be disseminated other than in anonymous and aggregate form, for statistic or research purposes.
(d) object, in whole or in part, for legitimate reasons, to the processing of Personal Data described at previous art. 4, letter (c).
We also inform you that, pursuant to art. 77 of the GDPR, in the event you consider that your Personal Data have been processed in breach of the provisions of the GDPR, you have the right to file a claim before a supervising authority, notably in the member State where you habitually reside, where you work or where the alleged breach occurred. Said authority, with regards to the Italian territory, is the Garante for the protection of personal data.
You may exercise the afore-cited rights by contacting AGL at the abovementioned address, via the Contact and/or Customer Care section of AGL site, or by sending a message at the following email: eboutique@agl.com.
With reference to the processing of your Personal Data for the purchase of Products of AGL and the related sale transactions through the e-commerce section of the Site, including your registration on the Site, the management of orders, sale and delivery of Products, handling of returns, warranties and other activities required for the sale of Products through the e-commerce section of the Site, the separate data controller of your Personal Data is TRIBOO DIGITALE, in its quality of seller of the Products of AGL through the e-commerce section of the Site, with registered offices at the abovementioned address.
The following provisions explain the processing of Personal Data made by TRIBOO DIGITALE.
Should you wish to know which of your Personal Data is stored by TRIBOO DIGITALE, please contact TRIBOO DIGITALE as set forth by point 6 below.
The Site may contain links to sites of third parties that are neither controlled nor monitored by TRIBOO DIGITALE. Please note that access to and use of said sites of third parties may be subject to your acceptance of the additional privacy policies provided by third-party owners, hence we recommend to carefully read said policies prior to use such sites of third parties.
With regards to browsing data, we inform you that the technological and software systems used for the operation of the Site collect, during their normal operation, certain Personal Data the transmission of which is implied in the use of Internet communication protocols. Said Personal Data are not collected to be associated with identified data subjects, but, by their own nature and through processing and association with data held by third parties, may permit your identification. This category of Personal Data includes the IP addresses or domain names of the computers that you use to access the Site, URL addresses of requested resources, time of request, method used to submit the request to the server, size of the response file, numeric code indicating the status of the server’s response (successful, error, etc.) and other parameters concerning your operating system and technological environment.
With regards instead to Personal Data that you may voluntarily provide to register on the e-commerce section of the Site and/or through the order form for the conclusion and performance of sale transactions concerning the purchase of Products through the e-commerce section of the Site and/or through the Contact and/or Customer Care of the Site, we inform you that the Personal Data provided by you may include your name, surname, email address, telephone number, data of your credit card and your bank details, as well as information about you that is included in the messages that you may transmit to TRIBOO DIGITALE.
TRIBOO DIGITALE invites you not to transmit Personal Data or information that may be classified as data pertaining to special categories in pursuance of art. 9 of the GDPR (i.e. Personal Data that provide information about the state of health, sexual orientation, political and religious beliefs). TRIBOO DIGITALE will ignore any data possibly pertaining to special categories that may be contained in the messages that you may transmit to TRIBOO DIGITALE through the Contact section of the Site or by otherwise contacting TRIBOO DIGITALE, unless you provide your consent in writing to the use of said data pertaining to special categories by sending a specific consent statement in accordance with the modalities set forth in point 6 below.
(d) subject to your prior express and free consent, if required, the purposes of disclosing your Personal Data and data concerning purchases of Products made by you through the e-commerce section of the Site to AGL, which will process such data in quality its of separate data controller, for the purposes set forth by point 4 of previous paragraph A.
Any data processing concerning your credit card and/or bank details for purposes other than the verification of the existence of payment means, charging and management of payment, as well as the management of claims and litigation procedures, is excluded. To this end, the afore-cited data will be processed also by the bank that provides services connected to the management of online payments, as well as the institution that issued the credit card that you will enter to confirm your order of Products, in their quality of separate data controllers.
With the exception of browsing data, you are free to provide your Personal Data through the e-commerce section of the Site, whether at the time of your registering on said section and/or at the time of your completing the Product order, or through the Contact and/or Customer Care section of the Site. However, your decision not to provide said Personal Data may result in the impossibility to conclude and/or perform the sale transactions through the e-commerce section of the Site and/or for you to receive the service you requested with you message sent to TRIBOO DIGITALE.
In particular, your decision not to provide your Personal Data such as your personal data, email address, postal address, telephone number, credit card data and/or bank details, as well as Personal Data marked with (*) in the e-commerce section of the Site, may result in the impossibility to perform the Product purchase contract and/or to properly perform obligations under applicable laws and regulations. Refusal to provide said Personal Data may thus constitute, as the case may be, a legitimate and justified reason not to perform the Product purchase contract through the e-commerce section of the Site.
The provision of Personal Data other than those mentioned above is optional and does not result in any consequence with regards to the purchase of Products through the e-commerce section of the Site.
With regards to the processing purposes indicated at previous letters (b) and (c), your transmission of a Product order implies that you are aware that your Personal Data will be processed for the said purposes and, since the processing of such data is aimed at the performance of the relationship established with you and/or for purposes of legal, administrative and accounting nature, your consent is not required.
With regards, instead, to the purposes scopes indicated at previous letter (a), if applicable laws so require, you will be requested to expressly consent to the processing of Personal Data for said purposes. Your decision not to consent to the processing of your Personal Data for said purposes may result in the impossibility for you to successfully conclude the registration procedure on the e-commerce section of the Site and/or send a message to TRIBOO DIGITALE through the Contact section of the Site.
Processing of Personal Data will be principally made by means of electronic and/or automated tools and, in some cases, in paper format, such as when Personal Data processing is required to prevent frauds on the Site, with modalities and tools able to ensure the security and confidentiality of same, in compliance with the provisions of applicable laws. In particular, all technical, technological, organisational, logistic and procedural security measures, as provided by applicable laws, will be adopted to ensure the minimum level of protection required by law. The information collected and processing purposes will be pertinent to and not in excess of the type of services rendered. Your Personal Data will also be managed and protected in environments access to which is under constant monitoring.
The lieu of the processing of your Personal Data is the registered offices of TRIBOO DIGITALE and/or, if necessary, the offices of external data processors (or independent data controllers) indicated in art. 5 below.
Your Personal Data collect by the Site or provided by you voluntarily as a user will be stored by TRIBOO DIGITALE for the period of time required to attain the abovementioned purposes, without prejudice to the need to store data to perform obligations deriving from applicable laws, also after completion of the processing operations.
TRIBOO DIGITALE adopted security measures in order to minimize risks of destruction or loss, even accidental, of your Personal Data, unauthorised access or unauthorised or non-compliant with the above purposes processing of your Personal Data.
However, since it is not possible to guarantee that the measures adopted for the security of the Site and transmission of data and information through the Site limit or exclude any risk of unauthorised access or data loss, we invite you to ensure that your computer operates up-to-date antivirus software protecting incoming and outgoing online data transmission, and that your Internet provider implemented firewalls and antispamming filters of filters able to render online data transmission secure.
(b) companies and/or persons and/or consultants and/or professionals and/or suppliers, including Internet providers who cooperate with TRIBOO DIGITALE to attain the purposes of the processing indicated at letters (a), (b) and (c) of previous point 4, and persons entrusted with the management and maintenance of the Site and/or engaged by TRIBOO DIGITALE to supply the services offered therein.
In particular, your Personal Data may be disclosed to third parties who render, in their quality of separate data controllers and/or data processors, specific services on behalf of TRIBOO DIGITALE for the performance of the Product purchase contract through the e-commerce section of the Site, such as Global Collect, or for the rendering of payment services via credit card.
One of the data processors of your Personal Data is ThunLogistics S.r.l., via Rita Castagna 1, 46100 Mantova (MN) –Italy, with regards to the processing of your Personal Data that is required required to carry out logistic activities for the shipping and possible return of the Products purchased through the e-commerce section of the Site.
The abovementioned persons will act in their quality of separate data controllers or data Processors, as the case may be. A list of data processors is available at TRIBOO DIGITALE’s offices and may be obtained upon request.
Your Personal Data may also be disclosed by TRIBOO DIGITALE to AGL for administrative-accounting purposes strictly related to the contractual relationship in force between TRIBOO DIGITALE and AGL: the latter will process said data as separate data controller.
Finally, your Personal Data may be disclosed by TRIBOO DIGIALE to AGL, which will always act as a separate data controller, to reply to your specific request of information concerning the Products. In this case, the legal basis for data processing is the need to reply to your requests.
To obtain the complete list of processors processing your Personal Data, please contact Customer Care or send an email to the following address: privacy@triboo.it.
Processing by third parties shall in any event be made in accordance with correctness applicable laws, including the GDPR Save for the disclosure to AGL for the above indicated purposes, your Personal Data will not be disseminated other than in anonymous and aggregate form, for statistic or research purposes.
You may also contact TRIBOO DIGITALE’s Data Protection Officer (DPO), at the following address: lapo.curinigalletti@triboo.it.
c) confirmation that the operations indicated in letters a) and b) have been disclosed, also with regards to their content, to the persons to whom data was disclosed or notified, except in the event said obligation becomes impossible to perform or requires the use of means manifestly disproportionate compared to the protected right.
i) in whole or in part, for legitimate reasons, to the processing of Personal Data, even if pertinent to the purposes of their collection.
d) in the event you consider that your Personal Data has been processed in breach of the GDPR, the right to file a claim before a supervising authority (in the member State in which you habitually reside, where you work or where the alleged breach occurred). The Italian supervisory authority is the Garante for the protection of personal data, with offices in Piazza di Monte Citorio no. 121, 00186 – Rome (http://www.garanteprivacy.it/).

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art. 9
art. 5
art. 4
art. 77
art. 9
art. 5


§ 261-1 Declaration of policy; standards.
§ 261-2 Penalties for offenses.
Consistent with the New York State Uniform Fire Prevention and Building Code and the standards contained therein, it is hereby declared by the Town Board of the Town of Southampton that all improved properties shall be maintained in conformity with the provisions of this chapter so as to assure the desirable character of the property, to prevent blight and the spread thereof and to prevent hazards to the public health, safety and welfare. Properties used for bonafide agricultural production shall not be construed as improved properties for purposes of this chapter.
Surface and subsurface water shall be appropriately drained to protect buildings and structures, to prevent damage to adjacent property and to prevent the development of stagnant ponds. Swimming pools, spas, hot tubs and other structures erected for recreational use shall be maintained so as to avoid the stagnation of the water contained therein.
Stops, walks, driveways, parking spaces and appurtenances and other paved areas shall be maintained so as to afford safe passage for pedestrian traffic and motor vehicle traffic under normal use and weather conditions. Holes or other hazards shall be immediately filled or otherwise repaired or replacements be effected. All off-street commercial parking facilities paved with impervious materials shall be swept and shall have properly maintained visible pavement markings.
All landscaping shall be maintained so that lawns, hedges, bushes and trees shall be kept trimmed and free from becoming overgrown and unsightly, constituting an unsafe condition or blight. In addition, all leaves and brush collecting on the public right-of-way shall be kept out of the Town’s right-of-way directly adjacent to a property, except to the extent that said leaves may be properly disposed of pursuant to the Highway Department’s spring and fall cleanup program. Leaves and brush not properly disposed of pursuant to the Program rules, available online and from the Highway Department, shall constitute a violation of this chapter pursuant to § 261-2 herein.
All garbage, crates, rubbish, refuse or debris shall be kept inside the building or buildings on the premises, or in an acceptable enclosed container, and shall be regularly collected and removed from the premises.
No portable storage unit or receptacle shall be permitted on a residential parcel for more than two weeks, unless the property benefits from an open and valid building permit. If the property benefits from an open and valid building permit, said portable storage unit may remain until either the building permit expires, or a certificate of occupancy and/or compliance is issued for the work described in the permit, whichever occurs first. Thereafter, the portable storage unit must be removed.
Editor's Note: This local law also redesignated former Subsection B(5) through (11) as Subsection B(7) through (13), respectively.
No dumpster shall be permitted in the front yard or side yard of a residential property for more than four weeks, unless the property benefits from an open and valid building permit. If the property benefits from an open and valid building permit, said dumpster may remain in the front yard or side yard until either the building permit expires, or a certificate of occupancy and/or compliance is issued for the work described in the permit, whichever occurs first. Thereafter, the dumpster must be removed.
Yards, courts, play areas and vacant lots shall be kept clean and free of physical hazards. They shall be maintained in a manner that will prevent rubbish from being blown about the neighborhood. Open wells, cesspools or cisterns shall be securely closed or barricaded to prevent access by the public.
The owner of a vacated building shall take such steps and perform such acts as may be required of him from time to time to ensure that the building and its adjoining yards remain safe and secure and do not present a hazard to adjoining property or to the public.
A junked vehicle may not be parked, stored or left in the open but shall be stored in a suitable enclosed location inside a building or behind a fence which suitably screens such junked vehicles from view. A "junked vehicle," for the purposes of this chapter, shall be defined as any vehicle, including a trailer, which is without a currently valid license plate or plates and is in such a rusted, wrecked, discarded, dismantled, partly dismantled, inoperative or abandoned condition as to be no longer intended or in condition for legal use on the public highways. The Building Inspector shall make the final determination as to whether any particular vehicle shall be classified as a "junked vehicle," consistent with Chapter 316 of the Town Code.
All lights, lighting stanchions, utility poles and other appurtenances situated on commercial property shall be suitably maintained in a safe condition so as to prevent hazards to the public health, safety and welfare.
Exterior facades shall at all times be kept free of graffiti or any other defacement.
All properties shall conform to the requirements of §§ 330-362 and 330-363 of Chapter 330 of the Southampton Town Code regarding the maintenance of landscaping, shrubs, bushes, hedges and trees to prevent landscaping from impeding emergency vehicle clearances and access. A minimum unobstructed clearance of 14 feet in both width and height shall be maintained for emergency access for all improved properties in which the improvement (such as a residential dwelling) is located at or beyond 150 feet from the edge of the public or private road surface.
For all improved properties in which the improvement (such as a residential dwelling) is located at or beyond 150 feet from the edge of the public or private road surface, landscaping, shrubs, hedges, bushes and trees adjacent to a driveway shall not be closer than 20 feet to the edge of the public or private road surface in order to accommodate a turning radius which permits entrance by fire-fighting apparatus and other emergency vehicles.
Except as required by § 261-2B below, violations of this chapter shall be punishable by a fine not exceeding $1,000 or by imprisonment for a term not exceeding 15 days, or both, for each violation. Each day’s continued violation shall constitute a separate additional violation. In addition to any fines imposed, anyone convicted pursuant to this section shall be required to pay a mandatory blight mitigation surcharge of $100. The blight mitigation surcharge shall be paid to the clerk of the court or administrative tribunal that rendered the conviction. Within the first 10 days of the month following collection of the mandatory surcharge, the collecting authority shall then pay such money to the Town Comptroller, who shall deposit such money in accordance with the provisions of § 8-6.1A of the Code.
Any second or subsequent conviction for a violation of this chapter within an eighteen-month period shall be considered an unclassified misdemeanor and shall be punishable by a fine of not less than $1,000 nor more than $5,000 or a term of imprisonment not to exceed six months, or both. An individual convicted hereunder shall not be subject to the mandatory blight mitigation surcharge discussed in § 261-2A above.
When authorized by a duly adopted resolution of the Town Board, the Town Attorney may pursue any and all actions in law or equity, including but not limited to actions for compensatory damages; civil penalties; to compel compliance, or to restrain by injunction violations of the standards enumerated in § 261-1.
Each day of a continuing violation of § 261-1 shall be subject to an escalating civil penalty as follows: $150 for the first day of violation or any part thereof, $250 for the second day of violation or any part thereof, and $500 for the third day of violation or any part thereof and for all subsequent days of violation.
Civil penalties may be recovered in any action or proceeding brought by the Town Attorney in any court of competent jurisdiction or before a duly appointed hearing officer whenever permitted by law.
Up to 100% of the monies recovered under Town Code § 261-2C shall be paid into the Town-Wide Blight Mitigation Reserve Account, with the remainder thereafter to be used for any other lawful purpose, including placement into the Water Quality Protection Fund.
Any civil penalty imposed shall be in addition to any fine and/or imprisonment as a result of a criminal prosecution provided for under this section or any state or local law.
Where the standards enumerated in § 261-1 are violated with regard to a property, the Town Board of the Town of Southampton shall have the right to direct appropriate agencies of the Town to take proper actions to bring the property into conformance with the standards of this chapter after the owner of the land has been notified by registered or certified mail at the address shown on the last previous assessment roll of the violation of the standards of this chapter and if such violation is not corrected by or on behalf of such owner 30 days after receipt of such notice. Said notice shall state specifically which standards have been violated. All costs and expenses incurred by the Town of Southampton in performing this work shall be assessed against the land on which such work is performed and be added to the tax bill applicable to said property for the next taxable period.


The first requisite of curtesy is lawful marriage. If the marriage was absolutely void, no curtesy will attach; but if it is only voidable, and is not annulled during the wife's life, then the husband will take his curtesy.27 Birth of Issue-curtesy Initiate.
26 2 Bl. Comm. 126; Alexander v. Warrance, 17 Mo. 228. There is considerable difference of opinion as to the origin of curtesy. 1 Washb. Real Prop. (5th Ed.) p. 170; Wright, Ten. 192, 193; 2 Bl. Comm. 12G. Many questions which might arise in connection with curtesy will be found discussed in treating of dower (post, p. 83). The rules stated there may be applied by analogy to the estate by curtesy if similar questions should arise.
27 2 Bl. Comm. 127; 1 Washb. Real Prop. (5th Ed.) 172; Wells v. Thompson, 13 Ala. 793.
28 Schermerhorn v. Miller, 2 Cow. (N. Y.) 439; Comer v. Chamberlain, 6 Allen (Mass.) 166; Ryan v. Freeman, 36 Miss. 175. A child born out of wedlock, but made legitimate by a subsequent marriage, gives curtesy. Hunter v. Whitworth, 9 Ala. 965.
29 Day v. Cochran, 24 Miss. 261; Heath v. White, 5 Conn. 228, 236; Barker v. Barker, 2 Sim. 249; Sumner v. Partridge, 2 Atk. 46.
30 Brock v. Kellock, 30 Law J. Ch. 498; Goff v. Anderson, 91 Ky. 303, 15 S. W. 866; In re Winne, 1 Lans. (N. Y.) 508; Ryan v. Freeman, 36 Miss. 175; Doe v. Roe, 5 Houst (Del.) 14; Goff v. Anderson, 91 Ky. 303, 15 S. W. 866.
31 Co. Litt 29b; Marsellis v. Thalhimer, 2 Paige (N. Y.) 42.
32 Co. Litt. 29b; 2 Bl. Comm. 128; Jackson v. Johnson, 5 Cow. (N. Y.) 74; Comer v. Chamberlain, 6 Allen (Mass.) 166; Guion v. Anderson, 8 Humph. (Tenn.) 307; Heath v. White, 5 Conn. 236; Witham v. Perkins, 2 Me. 400. Cf. Hathon v. Lyon, 2 Mich. 93.
If curtesy has once become initiate, it will not be defeated by the subsequent death of the issue, either in the mother's lifetime or after her death.33 In several states the birth of issue is made unnecessary by statute,34 and in Pennsylvania the husband has curtesy if the issue, had any been born, could have inherited.35 Seisin of Wife.
33 Co. Litt 29b; 2 Bl Comm. 128; Jackson v. Johnson, 5 Cow. (N. Y.) 74; Heath v. White, 5 Conn. 235; Foster v. Marshall, 22 N. H. 491.
34 1 Stim. Am. St Law, § 3301 B; Kingsley v. Smith, 14 Wis. 360.
35 Brightly, Purd. Dig. Pa. "Intestates," 4.
36 The reason assigned for this is that the husband can at any time perfect the wife's seisin by making an entry. 2 Ham. Bl Comm. 233, note 32; Van-arsdall v. Fauntleroy's Heirs, 7 B. Mon. (Ky.) 401; Mercer v. Selden, 1 How. 37. For the difference between seisin in fact and in law, see ante, p. 31.
37 Co. Litt 29a; Stinebaugh v. Wisdom, 13 B. Mon (Ky.) 467; Petty v. Molier, 15 B. Mon. (Ky.) 591; Mercer v. Selden, 1 How. 37; Den v. Demarest, 21 N. J. Law, 525; Parker v. Carter, 4 Hare, 400, 416; Davis v. Mason, 1 Pet 507. Contra, Bush v. Bradley, 4 Day (Conn.) 298.
38 Wass v. Bucknam, 38 Me. 356; Reaume v. Chambers, 22 Mo. 36, 54; Bush v. Bradley, 4 Day (Conn.) 298; Kline v. Beebe, 6 Conn. 494; Mitchell's Lessee v. Ryan, 3 Ohio St 377; Powell v. Gossom, 18 B. Mon. (Ky.) 179; Ellsworth v. Cook, 8 Paige (N. Y.) 643; Mercer v. Selden, 1 How. 37; Mccorry v. King's Heirs, 3 Humph. (Tenn.) 267; Adams v. Logan, 6 T. B. Mon. (Ky.) 175; Wat-kins v. Thornton, 11 Ohio St 367; Rabb v. Griffin, 26 Miss. 579; Childers v. Bumgarner, 8 Jones (N. C.) 297.
39 Borland v. Marshall 2 Ohio St. 308; Day v. Cochran, 24 Miss. 261; Adair v. Lott 3 Hill (N. Y.) 182; Jackson v. Johnson, 5 Cow. (N. Y.) 74; Chew v. Commissioners, 5 Rawle (Pa.) 160; Stephens v. Hume, 25 Mo. 349; Harvey v. Wickham, 23 Mo. 115; Carr v. Givens, 9 Bush (Ky.) 679; Enis v. Dittey (Ky.) 23 S. W. 366; Merritt's Lessee v. Horne, 5 Ohio St 307; Eager v. Furnivall, 17 Ch. Div. 115; Withers v. Jenkins, 14 S. C. 597; Mckee v. Cottle, 6 Mo. App. 416.
41 See note 41 on following page.


The Ninth Circuit recently issued its decision regarding the validity of the California Resale Royalty Act (“CRRA”) in three consolidated appeals: Close v. Sotheby’s, Inc., No. 16-56234, The Sam Francis Foundation v. Christie’s, Inc., No. 16-56235 and The Sam Francis Foundation v. eBay Inc., No. 16-56252. 2018 WL 3322222 (9th Cir. July 6, 2018).
As previously discussed on this blog, the CRRA provides that an artist may recover a five percent royalty on subsequent sales of his or her artwork, subject to certain statutory limitations. The plaintiffs in these actions—The Sam Francis Foundation, the Estate of Robert Graham, and the artists Chuck Close and Laddie John Dill—sought recovery of these statutory royalties from the defendants—Christie’s, Sotheby’s and eBay. In response, the defendants argued that the CRRA was unconstitutional because it violated the principles of the “first sale doctrine,” codified in section 109(a) of the Copyright Act of 1976, pursuant to which the lawful owner of a copyrighted work is entitled to dispose of his or her ownership in that property without acquiring the permission of the copyright owner. The Ninth Circuit, therefore, was asked to determine whether the “first sale doctrine” preempted the CRRA.
Although the CRRA’s resale royalty right and § 106(3)’s distribution right are not coextensive, they are equivalent. The two rights differ in that one grants artists the right to receive a percentage payment on all sales of artwork after the first, while the other grants artists the right to receive full payment on the first (and only the first) sale. But, at root, both concern the distribution of copies of artwork and define artists’ right (or lack thereof) to payment on downstream sales of those copies.
In short, the CRRA does not merely grant an additional right beyond what federal copyright law already provides but fundamentally reshapes the contours of federal copyright law’s existing distribution rights. This runs counter to § 301(a), which precludes ‘all legal or equitable rights that are equivalent to any of the exclusive rights within the general scope of copyright,’ even if they are not precisely within the contemplation of the Copyright Act.
The Ninth Circuit rejected arguments from the plaintiffs distinguishing between the distributional rights under the Copyright Act and the monetary rights created under the CRRA. See id. at *7 (finding that, despite “differences in how the CRRA and § 106(3) affect artists’ right to payment,” the “significant overlap” between their impacts is a sufficient basis for preemption). The panel also rejected an analogy that the plaintiffs drew between artists’ rights under the CRRA and artists’ right to privately contract with purchasers for resale royalties, noting that, while artists are permitted to contract freely under the Copyright Act, a statutory provision mandating payments to the artist for any subsequent sales imposes an impermissible restraint on the right of contract. See id. (“Plaintiffs have misunderstood the difference between a law that permits an act and a law that compels an act.”).
The Ninth Circuit’s decision will likely present a significant headwind for other states considering similar codifications of resale royalty legislation, and may shift the focus of those in favor of such protection back to the passage of federal resale royalty legislation.
 The Ninth Circuit declined to rule on the Takings Clause argument articulated by the defendants. Id. at *11.
 The decision did not end in total defeat for the plaintiffs. Relying heavily on its prior decision in Morseburg v. Balyon, 621 F.2d 972 (9th Cir. 1980), the Ninth Circuit found no preemption under the 1909 Copyright Act, which governed between the CRRA’s enactment on January 1, 1977 and the January 1, 1978 effective date of the 1976 Copyright Act. Close, 2018 WL 3322222, at *10. While acknowledging that several post-Morseburg Supreme Court cases cited by the defendants, including Kirtsaeng v. John Wiley & Sons, Inc., 568 U.S. 519 (2013) and Quality King Distributors, Inc. v. L’anza Research International, Inc., 523 U.S. 135 (1998), had created “tension” with Morseburg, the Ninth Circuit held steadfastly that it was “not persuaded that defendants have identified ‘clear irreconcilability’” between Morseburg and the intervening authority of the Supreme Court. Close, 2018 WL 3322222, at *9.
 The most recent legislation, the American Royalties Too Act of 2015, was introduced on April 16, 2015 in the House by Representative Jerrold Nadler (D-NY) and in the Senate by Senator Tammy Baldwin (D-WI), but both bills died in committee. See H.R. 1881, 114th Cong. (2015); S. 977, 114th Cong. (2015).
Elizabeth A. Beitler is an associate in the New York office of Hughes Hubbard & Reed LLP. Her practice focuses on complex litigation and compliance matters, including with respect to anti-corruption compliance, bankruptcy and restructuring. Elizabeth also maintains an active pro bono practice.