G.R. No. L-2411 David Thomas, plaintiff-appellant vs.

Hermogenes Pineda, defendant-appellant Facts: In 1931, David Thomas bought the Silver Dollar Caf in Plaza Santa Cruz, Manila from Dell Clark for 20,000 pesos. Thomas employed Hermogenes Pineda as a bartender of the bar. Through time defendant was promoted to the position of manager of the saloon. During the outbreak of the Second World War petitioner entered into a secret agreement with here in defendant. In the agreement, petitioner would enter into a fictitious sale of the property to defendant so as to prevent the enemy from taking his property. In 1945, petitioner tried to enforce the agreement between him and the defendant. Defendant denied the enforcement of the agreement and claimed that he had the ownership and the right to use the trade name of the Silver Dollar Caf and its other branch. Defendant claims that he registered the business and its name as his own in 1945. During such time the plaintiff did not use the name of the business and thus, it is understood that he has abandoned his right to the continued use of the trade name. Issue: Whether or not defendant had the right to use the trade name? Decision: Decision in favor of the Plaintiff Reason: It is found that the plaintiff instructed the defendant to renew the registration of the trade name. The defendant was found to be in bad faith when he registered the trade name in his name and not that of his owner. The defendants registration of the trade name must be deemed to have been made for the benefit of its owner (plaintiff herein). It is an elementary rule in agency cases that an agent is estopped from acquiring any interest in the property subject matter of the agency which is adverse or against the interest of his principal.