Escolar Documentos
Profissional Documentos
Cultura Documentos
A2010
Prof. Victoria A.
Avena
JUDICIAL POWER
CONSTITUTIONAL PROTECTION
PRESCRIBED JURISDICTION i.e. OVER
SUBJECT MATTER, BY LAW
SINDICO V DIAZ
440 SCRA 50
CARPIO-MORALES; October 1, 2004
NATURE
Petition for review on certiorari of a decision of the RTC of Iloilo
FACTS
-Virgilio Sindico, is the registered owner of a parcel of land, which he let
the spouses Eulalio and Concordia Sombrea cultivate, without him sharing
in the produce, as his "assistance in the education of his cousins"
including defendant Felipe Sombrea
-After the death of the Eulalio Sombrea, Felipe continued to cultivate the
lot
-On June 20, 1993, Sindico requested Felipes wife for the return of the
possession of the lot but the latter requested time to advise her husband
-Repeated demands for the return of the possession of the lot remained
unheeded, forcing Sindico to file a civil case before the RTC against the
spouses Sombrea for Accion Reivindicatoria with Preliminary Mandatory
Injunction
-The defendants filed a Motion to Dismiss, alleging that the RTC has no
jurisdiction over their person and that as the subject matter of the case is
an agricultural land which is covered by the Comprehensive Agrarian
Reform Program (CARP) of the government, the case is within the
exclusive original jurisdiction of the DARAB in accordance with Section 50
of Republic Act 6657 (THE COMPREHENSIVE AGRARIAN REFORM
LAW OF 1988)
-The plaintiff filed an Opposition alleging that the case does not involve an
agrarian dispute, there being no tenancy relationship or leasehold
agreement with the defendants.
-The RTC of Iloilo granted the Motion to Dismiss
-As their Motion for Reconsideration was denied by the trial court, the
plaintiffs, herein petitioners, lodged the present Petition for Review on
Certiorari
ISSUE
WON the Department of Agrarian Reform Adjudication Board (DARAB)
has original and exclusive jurisdiction over the case at bar
HELD
No.
Ratio. Jurisdiction over the subject matter is determined by the allegations
of the complaint. It is not affected by the pleas set up by the defendant in
that the court had no jurisdiction of the subject matter, it having just been
ascertained by the plaintiff that the land sought to be condemned was
situated in the Province of Nueva Ecija, instead of the Province of Tarlac,
as alleged in the complaint. This motion was heard and, after due
consideration, the trial court dismissed the action upon the ground
presented by the plaintiff.
ISSUE/S
1. WON CFI Tarlac has power and authority to take cognizance of
condemnation of real estate located in another province
2. WON Sec. 3771 of the Code of Civil Procedure and Act. No. 1258 are
applicable and so the CFI has no jurisdiction
HELD
1.YES
Ratio Sections 55 and 562 of Act No. 136 of the Philippine Commission
confer perfect and complete jurisdiction upon the CFI of these Islands with
respect to real estate in the Philippine Islands. Such jurisdiction is not
made to depend upon locality. There is no suggestion of limitation. The
jurisdiction is universal. It is nowhere suggested, much less provided, that
a CFI of one province, regularly sitting in said province, may not under
1
SEC. 377. Venue of actions. Actions to confirm title to real estate, or to secure a partition
of real estate, or to cancel clouds, or remove doubts from the title to real estate, or to obtain
possession of real estate, or to recover damages for injuries to real estate, or to establish
any interest, right, or title in or to real estate, or actions for the condemnation of real estate
for public use, shall be brought in the province were the lands, or some part thereof, is
situated; actions against executors, administrators, and guardians touching the
performance of their official duties, and actions for account and settlement by them, and
actions for the distribution of the estates of deceased persons among the heirs and
distributes, and actions for the payment of legacies, shall be brought in the province in
which the will was admitted to probate, or letters of administration were granted, or the
guardian was appointed. And all actions not herein otherwise provided for may be brought
in any province where the defendant or any necessary party defendant may reside or be
found, or in any province where the plaintiff, except in cases were other special provision is
made in this Code. In case neither the plaintiff nor the defendant resides within the
Philippine Islands and the action is brought to seize or obtain title to property of the
defendant within the Philippine Islands and the action is brought to seize or obtain title to
property of the defendant within the Philippine Islands, the action shall be brought in the
province where the property which the plaintiff seeks to seize or to obtain title to is situated
or is found: Provided, that in an action for the foreclosure of a mortgage upon real estate,
when the service upon the defendant is not personal, but is by publication, in accordance
with law, the action must be brought in the province where the land lies. And in all cases
process may issue from the court in which an action or special proceeding is pending, to be
enforced in any province to bring in defendants and to enforce all orders and decrees of the
court. The failure of a defendant to object to the venue of the action at the time of entering
his appearance in the action shall be deemed a waiver on his part of all objection to the
place or tribunal in which the action is brought, except in the actions referred to in the first
sixteen lines of this section relating to real estate, and actions against executors,
administrators, and guardians, and for the distribution of estates and payment of legacies.
A2010
- The fact that such a provision appears in the procedural law at once
raises a strong presumption that it has nothing to do with the jurisdiction of
the court over the subject matter. It becomes merely a matter of method,
of convenience to the parties litigant. If their interests are best subserved
by bringing in the Court Instance of the city of Manila an action affecting
lands in the Province of Ilocos Norte, there is no controlling reason why
such a course should not be followed. The matter is, under the law,
entirely within the control of either party. The plaintiff's interests select the
venue. If such selection is not in accordance with section 377, the
defendant may make timely objection and, as a result, the venue is
changed to meet the requirements of the law.
- Section 377 of the Code of Civil Procedure is not applicable to actions by
railroad corporations to condemn lands; and that, while with the consent of
defendants express or implied the venue may be laid and the action tried
in any province selected by the plaintiff nevertheless the defendants
whose lands lie in one province, or any one of such defendants, may, by
timely application to the court, require the venue as to their, or, if one
defendant, his, lands to be changed to the province where their or his
lands lie. In such case the action as to all of the defendants not objecting
would continue in the province where originally begun. It would be
severed as to the objecting defendants and ordered continued before the
court of the appropriate province or provinces. While we are of that
opinion and so hold it can not affect the decision in the case before us for
the reason that the defendants are not objecting to the venue and are
not asking for a change thereof. They have not only expressly
submitted themselves to the jurisdiction of the court but are here asking
that that jurisdiction be maintained against the efforts of the plaintiff to
remove it.
Prof. Victoria A.
Avena
JURISDICTION OVER PERSON OF THE PLAINTIFF
- Procedure does not alter or change that power or authority; it simply
directs the manner in which it shall be fully and justly exercised. To be
sure, in certain cases, if that power is not exercised in conformity with the
provisions of the procedural law, purely, the court attempting to exercise it
loses the power to exercise it legally. This does not mean that it loses
jurisdiction of the subject matter. It means simply that he may thereby lose
jurisdiction of the person or that the judgment may thereby be rendered
defective for lack of something essential to sustain it. There is, of course,
an important distinction between person and subject matter are both
conferred by law. As to the subject matter, nothing can change the
jurisdiction of the court over diminish it or dictate when it shall attach or
when it shall be removed. That is a matter of legislative enactment which
none but the legislature may change. On the other hand, the jurisdiction of
the court over the person is, in some instances, made to defend on the
consent or objection, on the acts or omissions of the parties or any of
them. Jurisdiction over the person, however, may be conferred by
consent, expressly or impliedly given, or it may, by an objection, be
prevented from attaching or removed after it has attached.
2. NO
Ratio Sec. 377 contains no express inhibition against the court. The
prohibition provided therein is clearly directed against the one who begins
the action and lays the venue. The court, before the action is commenced,
has nothing to do with it either. The plaintiff does both. Only when that is
done does the section begin to operate effectively so far as the court is
concerned. The prohibition is not a limitation on the power of the court but
on the rights of the plaintiff. It establishes a relation not between the court
and the subject, but between the plaintiff and the defendant. It relates not
to jurisdiction but to trial. It simply gives to defendant the unqualified right,
if he desires it, to have the trial take place where his land lies and where,
probably, all of his witnesses live. Its object is to secure to him a
convenient trial.
JURISDICTION OVER PERSON OF THE PLAINTIFF
- That it had jurisdiction of the persons of all the parties is indisputable.
That jurisdiction was obtained not only by the usual course of practice that is, by the process of the court - but also by consent expressly given,
is apparent. The plaintiff submitted itself to the jurisdiction by beginning
the action. The defendants are now in this court asking that the action be
not dismissed but continued. They are not only nor objecting to the
jurisdiction of the court but, rather, are here on this appeal for the purpose
of maintaining that very jurisdiction over them. Nor is the plaintiff in any
position to asked for favors. It is clearly guilty of gross negligence in the
allegations of its complaint, if the land does not lie in Tarlac as it now
asserts.
*DISTINGUISHED FROM VENUE
JURISDITION VOID
ABBAIN V. CHUA
22 SCRA 748
Sanchez; February 26, 1968
NATURE
Direct appeal to the SC
FACTS
- March 12, 1958: Tongham Chua commenced suit for forcible entry and
illegal detainer against Hatib Abbain with the Justice of the Peace (JOP)
Court of Bongao, Sulu. Chua's averred that he is the owner of a 4-hectare
land together with the improvements thereon mostly coconut trees located
in Maraning, Bongao, Sulu; that this land was donated to him by his
father, Subing Chua, in 1952 and from that date he has assumed
ownership thereof, taken possession of the land and paid the
corresponding taxes yearly; that from 1952-1958, Abbain has been his
tenant and the two divided the fruits or copra harvested therefrom on 5050basis; that in 1957, Abbain by means of force, strategy and stealth
unlawfully entered and still occupies the land in question after Chua have
repeatedly demanded of him to vacate the premises due to his failure to
give chuas share of the several harvests.
LC: JOP Managula rendered judgment directing Abbain to vacate the
premises and place Chua in possession of the plantation, with costs. This
judgment was predicated upon the findings that sometime before WWII,
Abbain, because of financial hardship, sold for P225 to Subing Chua the
coconut plantation; that after the sale, Abbain became the tenant of Chua,
the harvests of the land divided on a 50-50 basis; that subsequently,
Subing Chua donated the plantation to his son, Tongham Chua, and
Abbain, the same tenant of the father, continued to be the tenant on the
land.
- Abbain filed a petition in the CFI of Sulu against Tongham Chua and
Judge Managula, seeking relief from the judgment of the JOTP Court
anr/or annulment of its decision with preliminary injunction. He averred
that the JOTP Court did not have jurisdiction over the civil case and
that said case was within the exclusive original jurisdiction of the
Court of Agrarian Relations (CAR).
CFI of Sulu: petition dismissed without cause
-petitioner has not presented any proof or showing of landlord and tenant
relationship between the parties" to bring the case within the jurisdiction of
the CAR, and that upon the allegations of the complaint, the case is
"clearly
one
of
ejectment."
ISSUE
WON the JOTP Court has jurisdiction over the case filed by Chua
HELD
NO
Ratio. Where a judgment or judicial order is void in this sense it may be
said to be a lawless thing, which can be treated as an outlaw and slain at
sight, or ignored wherever and whenever it exhibits its head. And in
Gomez vs. Concepcion, this Court quoted with approval the following
from Freeman on Judgments: "A void judgment is in legal effect no
judgment. By it no rights are divested. From it no rights can be obtained.
Being worthless in itself, all proceedings founded upon it are equally
worthless. It neither binds nor bars any one. All acts performed under it
and all claims flowing out of it are void. The parties attempting to enforce it
may be responsible as trespassers. The purchaser at a sale by virtue of
its authority finds himself without title and without redress."
Since the judgment here on its face is void ab initio, the limited periods for
relief from judgment in Rule 38 are inapplicable. That judgment is
vulnerable to attack "in any way and at any time, even when no appeal
has been taken."
Reasoning. The provisions of Sec. 21 of RA 1199 (approved August 30,
1954), known as the Agricultural Tenancy Act of the Philippines, read:
"SEC. 21. Ejectment; violation; jurisdiction. All cases involving the
dispossession of a tenant by the landholder or by a third party and/or the
settlement and disposition of disputes arising from the relationship of
A2010
Prof. Victoria A.
Avena
Disposition The decision of the JOTP Court of Sulu is annulled.
JURISDICTION BY ESTOPPEL
General rule:
SEAFDEC V NLRC (LAZAGA)
206 SCRA 283
NOCON, February 14, 1994
NATURE
Petition for certiorari to review the decision of the NLRC
FACTS
-SEAFDEC-AQD is a department of an international organization, the
Southeast Asian Fisheries Development Center. Private Respondent
Lazaga was hired as a Research Associate and eventually became the
Head of External Affairs Office of SEAFDEC-AQD. However, he was
terminated allegedly due to financial constraints being experienced by
SEAFEC-AQD. He was supposed to receive separation benefits but
SEAFDEC-AQD failed to pay private respondent his separation pay so
Lazaga filed a complaint for non-payment of separation benefits, plus
moral damages and attorneys fees with the NLRC.
-In their ANSWER WITH COUNTERCLAIM, SEAFDEC alleged that NLRC
has no jurisdiction over the case because: (1) It is an international
organization; (2) Lazaga must first secure clearances from the proper
departments for property or money accountability before any claim for
separation pay will be paid (and clearances has not been paid)
COUNTERCLAIM: Lazaga had property accountability and outstanding
obligation to SEAFDEC-AQD amounting to P27, 532.11 and that Lazaga
was not entitled to the accrued sick leave benefits due to his failure to
avail of the same during his employment
-LA: for Lazaga
-NLRC: affirmed LA, deleted attorneys fees and actual damages
-SEAFDEC-AQD filed MFR, denied
ISSUES
1. WON SEAFEC-AQD is immune from suit owing to its international
character
2. WON SEAFDEC-AQD is estopped from claiming that the court had no
jurisdiction
HELD
1. YES
Exception:
SOLIVEN vs FASTFORMS PHILS.
440 SCRA 389
Sandoval-Gutierrez, October 18, 2004
NATURE
-petition for review on certiorari
FACTS
-Petitioner Marie Antoinette Soliven filed a complaint for P195,155 as
actual damages with P200k as moral damages, P100k as exemplary
damages and P100k as attorneys fees against respondent Fastform
Phils., with the Makati RTC. It alleged that respondent, through its
president Dr. Escobar, obtained a loan from petitioner (P170k) payable
within 21 days with 3% interest. On the same day, respondent issued a
postdated check for P170k + P5k int. 3 weeks later, Escobar advised
petitioner not to deposit the check as the account from where it was drawn
had insufficient funds and instead proposed that the P175k be rolled-over
with 5% monthly interest, to which the latter agreed. Respondent issued
several checks as payment for interests for 5 months but thereafter
refused to pay its principal obligation despite petitioners repeated
demands.
-In its counterclaim, respondent denied obtaining the loan and that it did
not authorize Escobar to secure said loan or issue checks as payment for
interests. After a trial on the merits, the court ordered respondent to pay
the amount of the loan plus interest and attorneys fees, but moral and
exemplary damages as well as the counterclaim were dismissed.
A2010
FACTS
- July 1979 Private respondent Laurente (former sale supervisor of
petitioner corporation) was notified and advised of his immediate
termination for gross neglect of duty and/or dishonesty
- August 1979 - Laurente instituted a civil action for damages against
SFSC and Siao, its manager
- Laurente filed a complaint for illegal dismissal (labor case).
- January 1980 - Petitioners filed a motion to dismiss on Civil Case,
claiming that the jurisdiction should be vested with the NLRC.
- February 5, 1980 - it was found that the termination of the complainant
was for a just and valid cause
- February 28, 1980 The court in Civil Case deferred the determination
of the motion to dismiss until after trial.
- Petitioners filed a motion for reconsideration but it was denied. Thus,
this petition for the issuance of a writ of preliminary injunction.
Prof. Victoria A.
Avena
ISSUE
WON the respondent judge committed grave abuse of discretion when it
deferred the determination or resolution of the motion to dismiss
questioning the jurisdiction of the court over claims for damages.
HELD
NO.
Ratio "(t)he rule is that where a court has already obtained and is
exercising jurisdiction over a controversy, its jurisdiction to proceed to the
final determination of the cause is not affected by new legislation placing
jurisdiction over such proceedings in another tribunal. The exception to
the rule is where the statute expressly provides, or is construed to the
effect that it is intended to operate as to actions pending before its
enactment. Where a statute changing the jurisdiction of a court has no
retroactive effect, it cannot be applied to a case that was pending prior to
the enactment of the statute." (Bengzon v. Inciong)
Reasoning
a. Article 217 (a) (4) of the Labor Code as amended by Section 9 of
Republic Act No. 6715 clearly provides that the labor arbiter shall
have original and exclusive jurisdiction to hear and decide claims for
actual, moral, exemplary and other forms of damages arising from
an employer-employee relationship. However, when the civil case
for damages was instituted in 1979, the applicable law then was
Article 217 (a) (3) of the Labor Code as amended by Presidential
Decree No. 1367 (May 1, 1978) which provides that Labor Arbiters
shall not entertain claims for moral or other forms of damages.
b. To require the private respondent to file a single suit combining his
actions for illegal dismissal and damages in the NLRC would be to
sanction the retroactivity of Republic Act No. 6715 which took effect
on March 21, 1989, where the same law does not expressly so
provide, or does not intend to operate as to actions pending before
its enactment, hence prejudicial to the orderly administration of
justice.
Disposition. The petition is DISMISSED for lack of merit.
Of the defendant
1. by service of summons
2. by voluntary appearance
BOTICANO V CHU, JR
148 SCRA 541
PARAS; March 16, 1987
A2010
Prof. Victoria A.
Avena
NATURE
Petition for review on certiorari seeking to reverse and set aside CA ruling
of denying MFR.
FACTS
- Eliseo Boticano is the registered owner of a Bedford truck which is used
in hauling logs for a fee. It was hit at the rear by another Bedford truck
owned by Manuel Chu and driven by Jaime Sigua while loaded with logs
and parked properly by the driver Maximo Dalangin at the shoulder of the
national highway.
- Chu acknowledged ownership and agreed to shoulder the expenses of
the repair, but failed to comply with the agreement. Boticano filed a
complaint at the CFI at Cabanatuan against Chu and Sigua. Summons
were issued but one was returned unserved for Sigua wile the other
served thru Chus wife.
- Boticano moved to dismiss the case against Sigua and to declare Chu in
default. The Court granted the motions and adduced from evidence that
Chu is responsible for the fault and negligence of the driver under Art
2180 CC.
- Chu filed with the TC a notice of appeal and an urgent motion for
extension of time to file record on appeal. Court granted the motions.
- Boticano filed a MTD the appeal and for execution, but the appeal was
still approved. The case was brought to the CA. CA set aside the TC
decision for being null and void.
- Boticano filed an MFR with the CA to which CA denied.
ISSUE/S
1. WON the question of jurisdiction of the court over the person of the
defendant cannot be raised for the first time on appeal
2. WON CA erred in holding that Chu did not voluntarily submit himself to
the jurisdiction of the TC despite his voluntary appearance
HELD
1. NO
Ratio The defects in jurisdiction arising from irregularities in the
commencement of the proceedings, defective process or even absence of
process may be waived for failure to make seasonal objections.
Reasoning The circumstances appear to show that there was waiver by
the defendant to allege such defect when he failed to raise the question in
the CFI and at the first opportunity.
2. YES, he voluntarily submitted himself to the courts jurisdiction.
Ratio Under Sec 23, Rule 14 ROC, the defendants voluntary appearance
in court shall be equivalent to service. It has been held by the court that
the defect of summons is cured by the voluntary appearance by the
appearance of the defendant.
Disposition The assailed decision and resolution of CA are reversed and
set aside. The decision of the CFI (now RTC) is reinstated.
3. by voluntary submission
RODRIGUEZ VS ALIKPALA
57 SCRA 455
CASTRO; June 25, 1974
NATURE
Petition for certiorari
FACTS
-Petitioner Rodriguez filed a case for recovery of the sum of P5,320.00
plus interest, attorneys fees and cost against Sps. Robellado.
-A writ of preliminary attachment was issued and served to Fe Robellado
at their store in Divisoria. Sps Robellado pleaded to the Rodriguez for time
before the attachment to be effectively enforced. Rodriguez agreed to the
suspension of the judgment on the condition that Fe Robellados parents,
the now respondents, Federico & Felisa Tolentino, to bind themselves
jointly and severally with the Robellados, to pay the entire obligation
subject of the suit. Felisa Tolentino, being present, immediately agreed to
this proposal.
-A compromise agreement was then entered to by the parties. The
Rebellados subsequently failed to comply with the terms of the
compromise agreement, thus prompting petitioner Rodriguez to request
the City Court for a writ of execution on the properties of the Robellados
and also of the Tolentinos. The request was granted by the City Court. The
Tolentinos brought an action for certiorari with the Court of First Instance
of Manila. The CFI rendered judgment excluding the Tolentinos from the
effects of the writ of execution. Thus this appeal.
ISSUE
WON the CFI erred in excluding the Tolentinos from the effects of the writ
of execution.
HELD
YES
-The contention of the CFI that the dispositive portion of the judgment of
the City Court does not explicitly enjoin the Tolentinos to pay jointly and
severally with the Rebellados the amount due to the plaintiff, and that the
City Court never acquired jurisdiction over Tolentinos and therefore cannot
be bound by the judgment rendered by said court, is erroneous.
-The dispositive portion of the judgment of the City Court approving the
compromise and enjoining strict compliance thereto by the parties is
adequate for the purpose of execution. Judgment on a compromise need
not specifically name a person to be subject of execution thereof in
obvious avoidance of repetition.
-On lack of jurisdiction of the court over the Tolentinos: the Tolentinos
freely and voluntarily entered into the compromise agreement which
became the basis of judgment of the City Court. Under the circumstances,
the Tolentinos are estopped the very authority they invoked. And even
assuming that estoppel lies, we cannot set aside the principle of equity
that jurisdiction over a person not originally a party to a case may be
acquired, upon proper conditions, thru the voluntary appearance of
the person before the court. By coming forward with the original litigants
in moving for a judgment on compromise and by assuming such interest in
the final adjudication of the case together with the Robellados, the
Tolentinos effectively submitted themselves to the jurisdiction of the City
Court.
-Jurisdiction over the plaintiff can be acquired by the court upon filing of
the complaint. On the other hand, jurisdiction over the defendants can
be acquired by the court upon service of valid summons and upon
voluntary appearance/submission of a person in court.
A2010
Prof. Victoria A.
RULING
1. NO.
- The action to foreclose a mortgage is said to be a proceeding quasi in
rem, by which is expressed the idea that while it is not strictly speaking an
action in rem yet it partakes of that nature and is substantially such. The
expression, "action in rem' is, in its narrow application, used only with
reference to certain proceedings in courts of admiralty wherein the
property alone is treated as responsible for the claim or obligation upon
which the proceedings are based. The action quasi in rem differs from the
true action in rem in the circumstance that in the former an individual is
named as defendant, and the purpose of the proceeding is to subject his
interest therein to the obligation or lien burdening the property. All
proceedings having for their sole object the sale or other disposition of the
property of the defendant, whether by attachment, foreclosure, or other
form of remedy, are in general way thus designated. The judgment
entered in these proceedings is conclusive only between the parties.
- Several principles: (1) That the jurisdiction of the court is derived from
the power which it possesses over the property; (II) that jurisdiction over
the person is not acquired and is nonessential; (III) that the relief granted
by the court must be limited to such as can be enforced against the
property itself.
- In a foreclosure proceeding against a nonresident owner it is necessary
for the court, as in all cases of foreclosure, to ascertain the amount due,
as prescribed in section 256 of the Code of Civil Procedure, and to make
an order requiring the defendant to pay the money into court. This step is
a necessary precursor of the order of sale. It is clearly intended merely as
compliance with the requirement that the amount due shall be ascertained
and that the defendant shall be required to pay it. As further evidence of
this it may be observed that according to the Code of Civil Procedure a
personal judgment against the debtor for the deficiency is not to be
rendered until after the property has been sold and the proceeds applied
to the mortgage debt (sec. 260)
- Whatever may be the effect in other respects of the failure of the clerk of
the CFI to mail the proper papers to the defendant in China, such
irregularity could in no wise impair or defeat the jurisdiction of the court,
for in our opinion that jurisdiction rests upon a basis much more secure
than would be supplied by any form of notice that could be given to a
resident of a foreign country.
indicating in the order that the action of Quemada was for the recovery of
real property and real rights. The respondents were instructed to file their
answer.
- De Midgely filed this action with the Supreme Court.
Separate Opinion
MALCOLM; dissent
- The fundamental idea of due process of law is that no man shall be
condemned in his person or property without notice and an opportunity of
being heard in his defense.
- "A judgment which is void upon its face, and which requires only in
inspection of the judgment roll to demonstrate it want of vitality is a dead
limb upon the judicial tree, which should be lopped off, if the power so to
do exists. It can bear no fruit to the plaintiff, but is a constant menace to
the defendant."
HELD
NO. The fact that she alleged as a ground for dismissal the lack of earnest
effort to compromise is deemed as abandonment of her special
appearance and as voluntary submission to the courts jurisdiction.
Ratio. When the appearance is by motion for the purpose of objecting to
the jurisdiction of the court over the person, it must be for the sole and
separate purpose of objecting to the jurisdiction of the court. If the motion
is for any other purpose than to object to the jurisdiction of the court over
his person, he thereby submits himself to the jurisdiction of the court,
Reasoning. Even if the lower court did not acquire jurisdiction over De
Midgely, her motion to dismiss was properly denied because Quemadas
action against her maybe regarded as a quasi in rem where jurisdiction
over the person of a non-resident defendant is not necessary and where
the service of summons is required only for the purpose of complying with
the requirement of due process. Quasi in rem is an action between
parties where the direct object is to reach and dispose of property owed
by the parties or of some interest therein.
- The SC cited the Perkins case as a precedent. In that case, it ruled that
in a quasi in rem action jurisdiction over a non resident defendant is not
essential. The service of summons by publication is required merely to
satisfy the constitutional requirement of due process. The judgment of the
court would settle the title to the properties and to that extent it partakes
of the nature of judgment in rem. The judgment is confined to the res
(properties) and no personal judgment could be rendered against the non
resident. It should be noted that the civil case filed by Quemada is related
to a testamentary proceeding as it was filed for the purpose of recovering
the properties which in the understanding of Quemada, belonged to the
estate of the Late Pastor, Sr. and which were held by De Midgely and her
brother.
Avena
2. NO.
- In a foreclosure case, some notification of the proceedings to the
nonresident owner, prescribing the time within which appearance must be
made, is everywhere recognized as essential. To answer this necessity
the statutes generally provide for publication, and usually in addition
thereto, for the mailing of notice to the defendant, if his residence is
known. It is merely a means provided by law whereby the owner may be
admonished by his property is the subject of judicial proceedings and that
it is incumbent upon him to take such steps as he sees fit to protect it.
- This mode of notification does not involve any absolute assurance that
the absent owner shall thereby receive actual notice. The idea upon which
the law proceeds in recognizing the efficacy of a means of notification
which may fall short of actual notice is apparently this: Property is always
DE MIDGELY VS FERANDOS
64 SCRA 23
AQUINO, May 13, 1975
NATURE
Original Actions. Certiorari and contempt.
FACTS
- Quemada, allegedly the illegitimate son of Alvaro Pastor, Sr., was
appointed as special administrator of the latters estate by the CFI of
Cebu. As such, he filed a complaint against his half siblings, the spouses
Alvaro Pastor, Jr. and Maria Elena Achaval, and Sofia Midgely, who were
all at that time citizens of Spain and residing in that country. The suit also
named Atlas Mining as co-respondent. The suit was to settle the question
of ownership over certain properties and rights in some mining claims as
Quemada believed that those properties belong to the estate of Alvaro
Pastor, Sr.
- Quemada, on his own, caused extraterritorial service of summons to be
made through the Department of Foreign Affairs and the Philippine
Embassy in Madrid, Spain, which effected the service of the summons
through registered mail upon De Midgely and Pastor, Jr. at their respective
addresses in Alicante and Barcelona.
- Both De Midgely and Pastor entered a special appearance and filed a
motion to dismiss on the ground of lack of jurisdiction as they are nonresidents. They further alleged that earnest efforts toward a compromise
have not been made as required in the Civil Code in suits between
members of the same family, The motion was denied by Judge Ferandos
and he ruled that the respondents were properly summoned.
- The subsequent motion for reconsideration was denied by Ferandos
ISSUE/S
WON Judge Ferandos gravely abused his discretion in denying De
Midgelys motion to dismissed based on the lack of jurisdiction over her
person.
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Prof. Victoria A.
Avena
NATURE
Petition for the Review of the Decision and resolution of CA
FACTS
- October 22, 1991 > Sps Abagat filed complaint against Sps Gonzaga for
recovery of possession of land in Baclaran, Paraaque issued in their
names, as owners. Sps Abagat alleged in their complaint that they were
the owners of a small hut (barong-barong) constructed on the lot, which
was then owned by the government
- February 22, 1961 > Abagat filed an application for sales patent over the
land
- January 26, 1973 > hut was gutted by fire and after that, Sps Gregorio
built a two-storey house on the property without their consent. Sps Abagat
filed a complaint for ejectment against Sps Gregorio but complaint was
dismissed for lack of jurisdiction because in their answer to the complaint,
the Sps Gregorio claimed ownership over the house
- Sps Gregorio sold house to Sps Gonzaga for P100,000 under a deed of
conditional sale, in which Sps Gregorio undertook to secure an award of
the land by the government in favor of Sps Gonzaga. In an MOA, Sps
Gregorio indicated that if they would not secure such, they would return
P90,000 as payment for the house
- January 2, 1986 > Bureau of Lands granted the application of Abagat for
a sales patent over the property. TCT No. 128186 was issued by the
Register of Deeds in his name. Sps Abagat demanded that Sps Gonzaga
vacate the property, but latter refused
- September 29, 1992 > Sps Abagat filed a motion for leave to file a thirdparty complaint against the Sps Gregorio. TC no longer resolved the
motion for leave to file a third-party complaint
- Trial Court > October 10, 1994, in favor of Sps Abagat
- CA > December 19, 1997, affirmed the decision of the trial court on. On
the plea of Sps Gonzaga that the TC should have ordered the Sps
Gregorio to refund to them the P90,000.00 the latter had received as
payment for the house, CA ruled that a separate complaint should have
been filed against the Sps Gregorio, instead of appealing the decision of
the TC.
ISSUE
WON RTC and CA erred in not ordering Sps Gregorio to refund to them
the P90,000 they had paid for the house and which the latter promised to
do so under their Memorandum of Agreement
HELD
NO
Ratio The rule is that a party is entitled only to such relief consistent with
and limited to that sought by the pleadings or incidental thereto. A trial
court would be acting beyond its jurisdiction if it grants relief to a party
beyond the scope of the pleadings. Moreover, the right of a party to
recover depends, not on the prayer, but on the scope of the pleadings, the
issues made and the law.
Reasoning
- Sps Gonzaga failed to file any pleading against Sps Gregorio for the
enforcement of the deed of conditional sale, the deed of final and absolute
SPECIFIC
JURISDICTION
COURTS
A. SUPREME COURT
Question of law
OF
URBANO V CHAVEZ
183 SCRA 347
GANCAYCO; March 19, 1990
NATURE
Petition to review decision of RTC Pasig
FACTS
- there are 2 cases involved here: a criminal action for violation of the AntiGraft and Corrupt Practices Act (RA 3019) and an civil action for damages
arising from a felony (defamation through a published interview whereby
Chavez imputed that Nemesio Co was a close associate (crony?) of
Marcos), both against Solicitor General Francisco Chavez (among others)
- in the criminal case (filed in the Office of the Ombudsman), the Office of
the SolGen (OSG) entered its appearance for Chavez and the other
accused (DILG Sec and 2 sectoral reps) as far as the Prelim Investigation
is concerned. Urbano et. al. filed a special civil action for prohibition in the
SC to enjoin the SolGen and his associates from acting as counsel for
Chavez in the PI. The contention is in the event that an information is filed
against the accused, the appearance of the OSG in the PI would be in
conflict with its role as the appellate counsel for the People of the Phils
(counsel at the first instance is the provincial/ state prosecutor).
- in the action for damages, the OSG likewise acted as counsel for
Chavez, who was then the SolGen and counsel for PCGG, the agency
responsible for the investigation of graft and corrupt practices of the
Marcoses. The OSG filed for extension of time to file required pleading,
and afterwards filed a motion to dismiss on behalf of Chavez. Petitioner
Co objected to appearance of OSG as counsel, contending that he is
suing Chavez in his personal capacity.
- OSG manifested that it is authorized to represent Chavez or any public
official even if the said official is sued in his personal capacity pursuant to
the unconditional provisions of PD478 which defines the functions of
OSG, as well as EO300 which made OSG an independent agency under
the Office of the President
- RTC denied the petition, thus allowing the appearance of OSG as
counsel. It also denied the MFR. Thus, this petition for review
ISSUE/S
1. WON the OSG has authority to appear for (a) a certain govt official in
the PI of their case before the Ombudsman and (b) the SolGen in a suit
for damages arising from a crime
HELD
1. NO
Ratio The OSG is not authorized to represent a public official at ANY
stage of a criminal case or in a civil suit for damages arising from a felony
(applies to all public officials and employees in the executive, legislative
and judicial branches).
Reasoning PD47811 defines the duties and functions of OSG:
SEC1. The OSG shall represent the Govt of the Phils, its agencies and
instrumentalities and its officials and agents in any litigation, proceeding,
investigation or matter requiring the services of a lawyer. x x x
- the OSG submits that since there is no qualification, it can represent any
public official without any qualification or distinction in any litigation.
- Same argument seems to apply to a similar provision in the Rev Admin
Code (Sec. 1661: As principal law officer of the Govt, the SolGen shall
have the authority to act for and represent the Govt , its officers and
agents in any official investigation, proceeding or matter requiring the
services of a lawyer). In Anti-Graft League v Ortega, SC interpreted Sec.
1661 to embrace PI. However, should an info be filed after, then OSG can
no longer act as counsel. The rationale given was that public officials are
subjected to numerous suits, and threats of criminal prosecution could
stay the hand of the public official. OSG provides assurance against
timidity in that they will be duly represented by counsel in the PI.
- However, the court declared this ruling abandoned in this case. The
anomaly in this ruling becomes obvious when, in the event of a judgment
of conviction, the case is brought on appeal to the appellate courts. The
OSG, as the appellate counsel of the People, is expected to take a stand
against the accused. More often than not, it does. Accordingly, there is a
clear conflict of interest here, and one which smacks of ethical
considerations, where the OSG, as counsel for the public official, defends
the latter in the PI, and where the same office, as appellate counsel of the
People, represents the prosecution when the case is brought on appeal.
This anomalous situation could not have been contemplated and allowed
by the law. It is a situation which cannot be countenanced by the Court.
- another reason why the OSG cant represent an accused in a crim case:
the State can speak and act only by law, whatever it says or does is
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lawful, and that which is unlawful is not the word or deed of the state. As
such, a public official who is sued criminally is actually sued in his
personal capacity inasmuch as his principal (the State) can never the
author of a wrongful act. The same applies to a suit for damages arising
from a felony, where the public official is held accountable for his act; the
state is not liable.
** Re: Question of Law (copied verbatim. This is all that is mentioned)
-both issues raise pure questions of law inasmuch as there are no
evidentiary matters to be evaluated by this Court. Moreover, if the only
issue is whether or not the conclusions of the trial court are in consonance
with law and jurisprudence, then the issue is a pure question of law
(Torres v Yu). Thus, the Court resolved to consolidate both Petitions and
to treat them as Petitions for certiorari on pure questions of law in
accordance with the provisions of the Rules of Court.
Disposition Petition is granted.
Reasoning. After analyzing the issues raised by Belmonte before the CA,
namely 1.) the jurisdiction of the CFI andf MC; 2.) the propriety of the
judgment on the pleadings rendered by the MC; and 3.) the propriety of
the issuance of the writ of execution issued by the CFI, the SC held that
the same are purely legal in nature. Since appellate jurisdiction over cases
involving purely legal questions is exclusively vested in the SC by Sec. 17
of the Judiciary Act (RA 296), it is apparent that the decision under review
rendered by the CA without jurisdiction should be set aside.
2. NO.
Reasoning. Where a subdivision owner seeks not just to eject the lot
buyer who defaulted in his payments but also prays that the residential
building constructed by the buyer be forfeited in plaintiff's favor, jurisdiction
over the case belongs to the CFI not the MC in an ejectment case. The
issues raised before the inferior court did not only involved the possession
of the lot but also rights and obligations of the parties to the residential
building which under Art. 45 of the CC is real property. Aslo, plaintiff's
claim to the bldg raises question of ownership.
-A CFI cannot assume jurisdiction in a case appealed to it under SECII
Rule 40 where one of the parties objected to its jurisdiction. Since the
original case was decided by the MC without jurisdiction over the subject
matter thereof, the CFI should have dismissed the cases when it was
brought before it on appeal.
Prof. Victoria A.
Avena
ORTIGAS V. CA
106 SCRA 121
ABAD SANTOS, 1981
NATURE
Petition for review of the decision of the CA
FACTS
-In 1974, Ortigas and Co. filed a complaint for unlawful detainer against
Maximo Belmonte in the Municipal Court of San Juan Rizal, praying that
judgment be rendered 1.) ordering the defendant his successors-ininterest to vacate and surrender the lot to plaintiff; 2.) declaring the
residential building constructed on the lot by defendant as forfeited in
favor of plaintiff; 3.0 condeming defendant to pay monthly rent of 5,000
from July 18, 1971 up to the time he vacates, together with attorney's fees
and exemplary damages. The Ruled in favor of plaintiff and granted the
relieves prayed for.
-Belmonte filed a motion to dismiss in the Cfi based on lack of jurisdiction
on the part of the MC. CFI denied motion and affirmed in totot the MC
judgment. The said court also issued a writ of execution. Belmonte filed a
petition for certiorari and prohibition with preliminsry injunction in the CA,
assiling the 1.) the jurisdiction of the CFI andf MC; 2.) the propriety of the
judgment on the pleadings rendered by the MC; and 3.) the propriety of
the issuance of the writ of execution issued by the CFI. The Ca ruled in
favor of Belmonte, holding that the MC has no jurisdiction. Hence the
present petition.
JOSEFA V ZHANDONG
GR 150903
SANDOVAL-GUTIERREZ; December 8, 2003
HELD
1. NO
Reasoning. Evidence indicate that Tan bought the hardboards from
Zhandong and, in turn, sold them to petitioner. However, both the trial
court and the Court of Appeals ignored this glaring reality and instead held
that petitioner purchased the boards directly from respondent.
General Rule : Only questions of law may be entertained by the Supreme
Court in a petition for review on certiorari
Exceptions:
(1) the conclusion is grounded on speculations, surmises or conjectures;
(2) the inference is manifestly mistaken, absurd or impossible;
(3) there is grave abuse of discretion;
(4) the judgment is based on a misapprehension of facts;
(5) the findings of fact are conflicting;
(6) there is no citation of specific evidence on which the factual findings
are based;
(7) the finding of absence of facts is contradicted by the presence of
evidence on record;
(8) the findings of the Court of Appeals are contrary to those of the trial
court;
(9) the Court of Appeals manifestly overlooked certain relevant and
undisputed facts that, if properly considered, would justify a different
conclusion;
(10) the findings of the Court of Appeals are beyond the issues of the
case;
(11) such findings are contrary to the admissions of both parties.
Disposition Petition is granted.
Change of venue
NATURE
Petition for review on certiorari
ISSUES
1. WON the CA has appellate jurisdiction over this case
2. WON the MC had jurisdiction to resolve the issues in the original
complaint
FACTS
Tan represented himself to be the owner of hardboards and sold them to
Josefa. Josefa paid all his obligations to Tan. The hardboards apparently
belonged to Zhandong. When Tan failed to pay Zhandong, it sent a
demand letter for the payment of the hardboards to both Tan and Josefa.
Trial Court ruled in favor of Zhandong
The Court of Appeals affirmed the trial courts Decision.
Petitioner filed a motion for reconsideration but was denied.
Petitioner ascribes to the CA the error in affirming the ruling of the trial
court that Josefa is liabe to Zhandong despite THE MOUNTAIN OF
EVIDENCE showing that they had no business transaction with each
other and that it was Tan who was solely responsible to Zhandong for the
payment of the goods.
HELD
1. NO.
ISSUE
1. WON Josefa is liable to Zhandong for the payment of the merchandise
The Solicitor General adopted a two-pronged thrusts in this petition: 1. the setting aside, by certiorari, of the order of the
Municipal Court of Kabankalan, presided over by Judge Rafael Gasataya, granting bail to the accused in the criminal cases
mentioned above, and 2. the petition for a change of venue or place of trial of the same criminal cases to avoid a miscarriage of
justice."
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FACTS
-September 15, 1980: acting on the evidence presented by the Philippine
Constabulary commander at Hinigaran, Negros Occidental, the CFI of that
province issued a search warrant for the search and seizure of the
deceased bodies of seven persons believed in the possession of the
accused MAYOR Pablo Sola in his hacienda at Sta. Isabel, Kabankalan,
Negros Occidental.
-September 16, 1980: armed with warrant, elements of the 332nd PC/INP
Company proceeded to the place of Sola. Diggings made in a canefield
yielded two common graves containing the bodies of Fernando
Fernandez, Mateo Olimpos, Alfredo Perez, Custodio Juanica, Arsolo
Juanica, Rollie Callet and Bienvenido Emperado.
-September 23 and October 1, 1980: the PC provincial commander of
Negros Occidental filed seven (7) separate complaints for murder against
the accused Pablo Sola, Francisco Garcia, Ricardo Garcia, Jose
Bethoven Cabral, Florendo Baliscao and fourteen (14) other persons of
unknown names. After due preliminary examination of the complainant's
witnesses and his other evidence, the municipal court found probable
cause against the accused. It thus issued an order for their arrest.
-However, without giving the prosecution the opportunity to prove that the
evidence of guilt of the accused is strong, the court granted them the right
to post bail for their temporary release. The accused Pablo Sola,
Francisco Garcia, and Jose Bethoven Cabral availed themselves of this
right and have since been released from detention.
-In a parallel development, the witnesses in the murder cases informed
the prosecution of their fears that if the trial is held at the Court of First
Instance branch in Himamaylan which is but 10 kilometers from
Kabankalan, their safety could be jeopardized. At least two of the accused
are officials with power and influence in Kabankalan and they have been
released on bail. In addition, most of the accused remained at large.
Indeed, there have been reports made to police authorities of threats
made on the families of the witnesses." The facts alleged argue strongly
for the remedies sought, namely a change of venue and the cancellation
of the bail bonds.
-March 15, 1981: this Court issued the following resolution: "The Court
Resolved to: (A) [Note] the comment of the Solicitor General on the urgent
petition for change of venue and cancellation of bail bonds, adopting the
plea of the petition, namely, (1) the setting aside, by certiorari, of the
order of the Municipal Court of Kabankalan, presided over by Judge
Rafael Gasataya, granting bail to the accused (2) the petition for a change
of venue or place of trial of the same criminal cases to avoid a miscarriage
of justice;
(B) [Transfer] the venue of the aforesaid criminal cases to Branch V of the
Court of First Instance of Negros Occidental at Bacolod City, presided by
Executive Judge Alfonso Baguio, considering that District Judge
Ostervaldo Emilia of the Court of First Instance, Negros Occidental,
Branch VI at Himamaylan has an approved leave of absence covering the
period from January 12 to March 12, 1981 due to a mild attack of cerebral
thrombosis and that the said Branch V is the nearest court station to
Himamaylan; and
(C) [Await] the comment of respondents on the petition to cancel bail,
without prejudice to the public officials concerned taking the necessary
measures to assure the safety of the witnesses of the prosecution."
THUS, THE ISSUE OF A CHANGE OF VENUE HAS BECOME MOOT
AND ACADEMIC.
-The comments respectively submitted by respondent Florendo Baliscao
on March 5, 1981, respondent Francisco Garcia on March 11, 1981 and
respondent Pablo Sola on March 16, 1981, dealt solely with the question
of the cancellation of the bail bonds. Such comments were considered as
answers, with the case thereafter deemed submitted for decision.
Prof. Victoria A.
Avena
ISSUE
Whether or not the bail bonds of respondents should be cancelled
HELD
YES.
Ratio. There being a failure to abide by the basic requirement that the
prosecution be heard in a case where the accused is charged with a
capital offense, prior to bail being granted, must be decided in favor of
petitioner. The bail bonds must be cancelled and the case remanded to
the sala of Executive Judge Alfonso Baguio for such hearing.
Reasoning. Bail was granted to the accused in the Order of the Municipal
Court without hearing the prosecution. That is to disregard the
authoritative doctrine enunciated in People v. San Diego.
-Justice Capistrano: "The question presented before us is, whether the
prosecution was deprived of procedural due process. The answer is in the
affirmative. We are of the considered opinion that whether the motion for
bail of a defendant who is in custody for a capital offense be resolved in a
summary proceeding or in the course of a regular trial, the prosecution
must be given an opportunity to present, within a reasonable time, all the
evidence that it may desire to introduce before the court should resolve
the motion for bail. If, as in the criminal case involved in the instant special
civil action, the prosecution should be denied such an opportunity, there
would be a violation of procedural due process, and the order of the court
granting bail should be considered void on that ground."
-J. Cardozo: "THE LAW, AS WE HAVE SEEN, IS SEDULOUS IN
MAINTAINING FOR A DEFENDANT CHARGED WITH CRIME
WHATEVER FORMS OF PROCEDURE ARE OF THE ESSENCE OF AN
OPPORTUNITY TO DEFEND. PRIVILEGES SO FUNDAMENTAL AS TO
BE INHERENT IN EVERY CONCEPT OF A FAIR TRIAL THAT COULD
BE ACCEPTABLE TO THE THOUGHT OF REASONABLE MEN WILL BE
KEPT INVIOLATE AND INVIOLABLE, HOWEVER CRUSHING MAY BE
THE PRESSURE OF INCRIMINATING PROOF. BUT JUSTICE, THOUGH
DUE TO THE ACCUSED, IS DUE TO THE ACCUSER ALSO. The
concept of fairness must not be strained till it is narrowed to a filament.
We are to keep the balance true."
-the very essence of due process as the embodiment of justice requires
that the prosecution be given the opportunity to prove that there is strong
evidence of guilt. It does not suffice, as asserted herein, that the questions
asked by the municipal judge before bail was granted could be
B. COURT OF APPEALS
ST MARTIN FUNERAL HOME VS NLRC
G.R. No. 130866
REGALADO; Sept 16, 1998
NATURE
Petition for certiorari which stemmed from a complaint for illegal dismissal
filed by herein private respondent before the NLRC
FACTS
- . Private respondent alleges that he started working as Operations
Manager of petitioner St. Martin Funeral Home on February 6, 1995.
However, there was no contract of employment executed between him
and petitioner nor was his name included in the semi-monthly payroll. On
January 22, 1996, he was dismissed from his employment for allegedly
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Prof. Victoria A.
10
Avena
ISSUE
WON the SC should entertain the present petition
HELD
NO (should be remanded to CA)
Ratio. All references in the amended Sec 9 of BP No. 129 to supposed
appeals from the NLRC to the SC are interpreted and hereby declared to
mean and refer to petitions for certiorari under Rule 65. Consequently, all
such petitions should henceforth be initially filed in the CA in strict
observance of the doctrine on the hierarchy of courts as the appropriate
forum for the relief desired.
Reasoning. It will be noted that paragraph (3), Section 9 of B.P. No. 129
now grants exclusive appellate jurisdiction to the Court of Appeals over all
final adjudications of the Regional Trial Courts and the quasi-judicial
agencies generally or specifically referred to therein except, among
others, "those falling within the appellate jurisdiction of the Supreme Court
in accordance with . . . the Labor Code of the Philippines under
Presidential Decree No. 442, as amended, . . . ." This would necessarily
contradict what has been ruled and said all along that appeal does not lie
from decisions of the NLRC. Yet, under such excepting clause literally
construed, the appeal from the NLRC cannot be brought to the Court of
Appeals, but to this Court by necessary implication.
The same exceptive clause further confuses the situation by declaring that
the Court of Appeals has no appellate jurisdiction over decisions falling
within the appellate jurisdiction of the Supreme Court in accordance with
the Constitution, the provisions of B.P. No. 129, and those specified cases
in Section 17 of the Judiciary Act of 1948. These cases can, of course, be
C. RTC
CENTRAL BANK OF THE PHILIPPINES and HON. JOSE
B. FERNANDEZ, VS CA, JUDGE TEOFILO GUADIZ, JR.,
PRODUCERS BANK OF THE PHILIPPINES and
PRODUCERS PROPERTIES, INC.
208 SCRA 652
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(a) PBP's unsecured overdraft with the Central Bank will be converted into
an emergency loan, to be secured by sufficient collateral
(b) A comptroller for PBP and any number of bank examiners deemed
necessary to oversee PBP's operations shall be designated by the CB,
under terms of reference to be determined by the Governor;
(c) A letter from the Management of PBP authorizing the CB to
automatically return clearing items that would result in an overdraft in its
CB account shall be submitted to the CB.
- the MB approved the consolidation of PBP's other unsecured obligations
to the CB with its overdraft and authorizing the conversion thereof into an
emergency loan. The same resolution authorized the CB Governor to lift
the conservatorship and return PBP's management to its principal
stockholders upon completion of the documentation and full
collateralization of the emergency loan, but directed PBP to pay the
emergency loan in 5 equal annual installments, with interest and penalty
rates at MRR 180 days plus 48% per annum, and liquidated damages of
5% for delayed payments.
- PBP submitted a rehabilitation plan to the CB. Although said proposal
was explored and discussed, no program acceptable to both the CB and
PPI was arrived at because of disagreements on certain matters such as
interest rates, penalties and liquidated damages. No other rehabilitation
program was submitted by PBP for almost 3 years; as a result thereof, its
overdrafts with the CB continued to accumulate. Consequently, per
Resolution No. 649, the CB Monetary Board decided to approve in
principle what it considered a viable rehabilitation program for PBP.
- There being no response from both PBP and PPI on the proposed
rehabilitation plan, the MB issued Resolution No. 751 on 7 August 1987
instructing CB management to advise the bank that:
a. The CB conservatorship over PBP may be lifted only after PBP shall
have identified the new group of stockholders who will put in new capital in
PBP and after the Monetary Board shall have considered such new
stockholders as acceptable; and
b. The stockholders of PBP have to decide whether or not to accept the
terms of the rehabilitation plan as provided under Resolution
No. 649 within one week from receipt of notice hereof and if such terms
are not acceptable to them, the Central Bank will take appropriate
alternative action on the matter; . . .
- the PBP, without responding to the communications of the CB, filed a
complaint against the CB, the MB and CB Governor Jose B. Fernandez,
Jr. The complaint, alleged that the conservatorship was unwarranted, illmotivated, illegal, utterly unnecessary and unjustified; that the
appointment of the conservator was arbitrary; that herein petitioners acted
in bad faith; that the CB-designated conservators committed bank frauds
and abuses; that the CB is guilty of promissory estoppel; and that by
reason of the conservatorship, it suffered losses. It prayed for a judicial
review of the MB Resolutions and the issuance of a TRO.
- The case was raffled to Branch 147 of Makati RTC court which was then
presided over by respondent Judge.
- respondent Judge issued a TRO; Subsequently, he issued an Order
enjoining defendant-petitioners or any of their agents from implementing
Monetary Board Resolutions Nos. 649 and 751 or from taking the
threatened "appropriate alternative action" including exclusion of plaintiff
Prof. Victoria A.
11
Avena
incurred by the respondent bank cannot be calibrated nor pinned down to
a specific amount in view of the damage that may be caused by the
appointment of a conservator to its goodwill and standing in the
community."
- petitioners filed with this Court the instant petition for review. It is alleged
therein that the respondent Court committed grave abuse of discretion in:
(1) Ignoring petitioners' contention that since PBP did not pay the correct
filing fees, the trial court did not acquire jurisdiction over the case; hence,
pursuant to Manchester Development Corp., et al. vs. Court of Appeals, et
al., the complaint should have been dismissed for lack of jurisdiction on
the part of the court;
(2) . . . ruling on the propriety or impropriety of the conservatorship as a
basis for determining the existence of a cause of action since the
amended complaint does not seek the annulment or lifting of the
conservatorship;
(3) . . . not holding that the amended complaint should have been
dismissed because it was filed in the name of PBP without the authority of
its conservator; and
(4) . . . not setting aside the Order of the trial court granting the issuance
of a writ of preliminary injunction which unlawfully restrained the CB from
exercising its mandated responsibilities and effectively compelled it to
allow the PBP to continue incurring overdrafts with it.
- private respondents argue that the Manchester rule is not applicable in
the case at bar because what is primarily sought for herein is a writ of
injunction and not an award for damages; it is further alleged that an order
denying a motion to dismiss is neither appealable nor be made the proper
subject of a petition for certiorari absent a clear showing of lack of
jurisdiction or grave abuse of discretion.
SECOND CASE
- Pursuant to the powers and authority conferred upon her by the Central
Bank, Atty. Leonida Tansinsin-Encarnacion, in her capacity as
conservator, instituted reforms aimed at making PBP more viable. With
this purpose in mind, she started reorganizing the bank's personnel and
committees.
- In order to prevent her from continuing with the reorganization, PBP filed
an Omnibus Motion asking the trial court for an order:
(a) reinstating PBP officers to their original positions and restoring the
bank's standing committees to their respective compositions prior to said
reorganization; (b) enjoining the lease of any portion of the bank's space
in Producers Bank Centre building to third parties and the relocation of
departments/offices of PBP as was contemplated; and (c) to hold, after an
opportunity to be heard is given her, said conservator in contempt of court
for disobedience of and resistance to the writ of injunction. An opposition
to the contempt charge was later filed by said petitioner.
- respondent Judge issued an Order (a) requiring conservator TansinsinEncarnacion to reinstate PBP officers to their original positions prior to the
reorganization of the bank's personnel and restore PBP's standing
committees to their original compositions, and (b) restraining her from
leasing out to third parties any portion of PBP's space in the Producers
Bank Centre building.
- A second Order directed Tansinsin-Encarnacion to publish the financial
statement of PBP
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Prof. Victoria A.
12
Avena
ISSUE
WON the respondent Judge committed grave abuse of discretion
amounting to lack of jurisdiction in not dismissing the Civil Case on the
ground of non-payment of the correct amount of docket fee in violation of
the rule enunciated in Manchester Development Corp. vs. Court of
Appeals, et al.
HELD
Ratio The action must be dismissed for failure of the plaintiffs therein to
pay the correct docket fees, pursuant to Manchester. The said case was
decided by this Court on 7 May 1987, exactly 3 months and 20 days
before the filing of the original complaint and 5 months and 18 days before
the filing of the Amended Complaint. It was ruled therein that:
The Court acquires jurisdiction over any case only upon the
payment of the prescribed docket fee. An amendment of the
complaint or similar pleading will not thereby vest jurisdiction in the
Court, much less the payment of the docket fee based on the
amounts sought in the amended pleading.
Reasoning The respondent Judge, in ruling that PBP and PPI had paid
the correct docket fee of P102.00, said that "the value of the case cannot
be estimated" since what is sought is an injunction against the
enforcement of the challenged resolutions of the MB; in short, the claim
for damages is merely incidental. Upon the other hand, respondent Court,
in its Resolution, ruled that the case is "incapable of pecuniary estimation"
because the value of the losses incurred by the PBP "cannot be calibrated
nor pinned down to a specific amount in view of the damage that may be
caused by the appointment of a conservator to its goodwill and standing in
the community."
Both conclusions are unfounded and are the result of a misapprehension
of the allegations and causes of action in both the complaint and
amended complaint.
- While PBP cleverly worded its complaint to make it appear as one
principally for injunction, deliberately omitting the claim for damages as a
specific cause of action, a careful examination thereof bears that the
same is in reality an action for damages arising out of the alleged
"unwarranted, ill-motivated and illegal conservatorship," or a
conservatorship which "was utterly unnecessary and unjustified," and the
"arbitrary" appointment of a conservator. Thus, as stated earlier, it devoted
the bulk of its petition to detailed events, occurrences and transactions in
support thereof and patiently enumerated the losses it sustained and
suffered.
- These are the very damages referred to in the prayer:
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ASCUE v CA (ANTONIO)
GR No. 84330
Padilla; May 8, 1991
Prof. Victoria A.
13
Avena
NATURE
Petition for review on certiorari
FACTS
- Private respondents Ramon Antonio, Salvador Salenga and Ulipia
Fernandez (lessees) filed a complaint with the MetroTC alleging that
petitioner Ascue (lessor) refused to collect their rentals. Hence, they
sought consignation of the payments with the MetroTC.
- Ascue filed a motion to dismiss complaint on the ground that it is the
RTC not MTC which has jurisdiction over consignation cases, the subject
matter of litigation being incapable of pecuniary estimation. The MetroTC
denied Ascues motion to dismiss and held that the inferior court had
jurisdiction since the consigned amount was P5,625 (well below 20K).
- Ascue later appealed to the RTC but the same dismissed the appeal for
being premature. Ascue brought the case to the SC on direct appeal but
the case was referred back to the CA. The CA then dismissed the petition
and ruled that the jurisdiction of a court in consignation cases depends on
the amount consigned, consignation being merely a form of payment and
the opposite of a demand by a creditor for payment.
ISSUE
WON the CA erred in holding that consignation cases fall within the
jurisdiction of the MetroTC and that the amount consigned determines
said jurisdiction
HELD
No.
Ratio In valid consignation cases, where the thing sought to be deposited
is a sum of money, the amount of debt due is determinable, hence, the
subject matter is capable of pecuniary estimation. This amount sought to
be consigned then determines the jurisdiction of the court.
Reasoning petitioner is of the belief that it is the RTC, not the MTC,
which has jurisdiction over the case, inasmuch as the subject matter of
litigation (the amount to be consigned) is incapable of pecuniary
estimation. This is wrong. Consignation is the act of depositing the thing
due with the court or judicial authorities whenever the creditor cannot
accept or refuses to accept payment and it generally requires a prior
tender of payment. Two of the requisites of it valid consignation are (1)
that there is a debt due. and (2) the amount is placed it the disposal of the
court. Thus, where no debt is due and owing, consignation is not proper.
In a valid consignation where the thing sought to be deposited is a sum of
money, the amount of the debt due is determinable. Clearly, the subject
matter (i.e., the amount due) in consignation cases is capable of
pecuniary estimation. This amount sought to be consigned determines the
jurisdiction of the court.
BAITO V SARMIENTO
109 Phil. 148
PADILLA; APR 25, 1960
NATURE
Appeal from CFI Samar
FACTS
-Lucina Baito filed action for support against her husband Anatalio
Sarmiento.
-CFI Samar dismissed her complaint on the ground that it has no
jurisdiction, the amount demanded as support being only P720
ISSUE
WON the CFI has jurisdiction over an action for support if the amount
claimed or demanded as support is only P720, or not more than P2,000
(now P5,000)
HELD
Ratio. An action for support does not only involve the determination of the
amount to be given as support, but also the relation of the parties, the
right to support created by the relation, the needs of the claimant, the
financial resources of the person from whom support is sought, all of
which are not capable of pecuniary estimation.
Reasoning. An action for support falls within the original jurisdiction of
Courts of First Instance under section 44(a) of Republic Act No. 296, as
amended by Republic Act No. 2613.
Disposition The order appealed from is set aside and the case is
remanded
D.
METROPOLITAN,
MUNICIPAL,
MUNICIPAL CIRCUIT TRIAL COURTS
Exclusive original jurisdiction in civil
and
estate
settlement
proceedings/over
provisional
remedies
Exclusive
original
jurisdiction
in
forcible entry and unlawful detainer
cases
LIM V CA (PIZARRO)
00 SCRA 00
A2010
Prof. Victoria A.
14
Avena
NATURE
Petition to review the decision and resolution of the Court of Appeals
FACTS
- Lim Kieh Tong, Inc. owns a building in Manila. One of the rooms in the
building (Room 301) is occupied by Reginaldo Lim, an MTC judge.
- The original occupant of Room 103 was Lim Eng Piao, the father of
Reginaldo. When Lim Eng Piao died, the occupancy was continued by
Reginaldo. Eventually, Reginaldo was able to acquire a house and lot in
Quezon City but he still used the room where he kept his books,
documents, appliances and other important belongings.
- September 1987 LKT, Inc. changed the lock of the main door of the
building which was commonly used by all the occupants of the building.
- September 30, 1987 Reginaldo was unable to enter the building
because he did not have a key to the new lock. He was unable to get his
law books for a case he was working on so he had to purchase new ones
which cost him P1,235.00.
- October 1, 1987 - He requested for a new key from the OIC of the
buiding but his request was not complied with.
- October 2, 1987 Reginaldo instituted a civil case against Rafael Lim
and Lim Kieh Tong, Inc. before the Metropolitan Trial Court. The
complaint was denominated as an action for damages with injunction but
was subsequently dismissed for lack of jurisdiction.
- October 23, 1987 Another complaint was instituted in the MTC which
had the same allegations. Reginaldo alleges that he has a clear and
unmistakable right to the use of said room, entitling him to the writ of
preliminary mandatory injunction to command petitioner to provide him the
appropriate key to the lock of the main building; and to pay damages in
the amount of P1,253.00, P5,000.00 attorney's fees and costs of the suit.
- November 2, 1987 - A temporary restraining order was issued by
respondent judge pending trial on the merits, commanding LKT, Inc. to
deliver the appropriate keys to Reginaldo and to allow him to enter the
premises and Room 301 of the building. - November 3, 1987 LKT, Inc.
instituted the instant petition.
- The Executive Judge issued a temporary restraining order, enjoining the
enforcement of the temporary restraining order earlier issued by
respondent judge and from further taking cognizance of said civil case.
With regard to the issue of possession: Force was used by LKT, Inc. in
depriving Reginaldo of physical possession of the room when the main
doors lock was changed without the knowledge and consent of
Reginaldo.
- The issue involved is mere physical possession (possession de facto)
and not juridical possession (possession de jure) nor ownership.
- The purpose of forcible entry is that regardless of the actual condition of
the title to property, the party in peaceable and quiet possession shall not
be turned out by strong hand, violence or terror.
- Considering that respondent judge found the applicability of the Rule in
Summary Procedure, the motion to dismiss was correctly denied, a motion
to dismiss being one of the prohibited pleadings and motions under
Section 15 of the 1983 Rules on Summary Procedure.
ISSUE
WON the action for specific performance in this case falls under the
jurisdiction of the RTC
HELD
NO
Ratio In Vichanco vs. Laurilla, it was held that what confers jurisdiction on
the inferior court in forcible entry and illegal detainer cases is not the
amount of unpaid rentals or damages involved, but rather the nature of
the action because the rents or damages are only incidental to the main
action.
Reasoning
- The suit is one for forcible entry and detainer under Rule 70 of the Rules
of Court. It was through stealth that LKT, Inc. prevented Reginaldo from
using the room.
- Any person deprived of possession of any land or building or part
thereof, may file an action for forcible entry and detainer in the proper
inferior court against the person unlawfully depriving or withholding
possession from him.
- This relief is available to a landlord, vendor and vendee and also to a
tenant or lessee or any other person against whom the possession of any
land or building, or a part of it, is unlawfully withheld, or is otherwise
unlawfully deprived possession within 1 year after such unlawful
deprivation or withholding possession.
Disposition Petition is denied. No costs.
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deed of sale or conveyance and to recover the price paid and for
rescission, which is a counterpart of specific performance.
While actions under Sec. 33(3) of B.P. 129 are also incapable of pecuniary
estimation, the law specifically mandates that they are cognizable by the
MTC, METC, or MCTC where the assessed value of the real property
involved does exceed P20,000.00 in Metro Manila, or P50,000.00, if
located elsewhere. If the value exceeds P20,000.00 or P50,000.00 as the
case may be, it is the Regional Trial Courts which have jurisdiction under
Sec. 19(2).
Reasoning The subject matter of the complaint in this case is annulment
of a document denominated as "DECLARATION OF HEIRS AND DEED
OF CONFIRMATION OF PREVIOUS ORAL PARTITION." The main
purpose of petitioners in filing the complaint is to declare null and void the
document in which private respondents declared themselves as the only
heirs of the late spouses Casimero Tautho and Cesaria Tautho and
divided his property among themselves to the exclusion of petitioners who
also claim to be legal heirs and entitled to the property. While the
complaint also prays for the partition of the property, this is just incidental
to the main action, which is the declaration of nullity of the document
above-described. It is axiomatic that jurisdiction over the subject matter of
a case is conferred by law and is determined by the allegations in the
complaint and the character of the relief sought, irrespective of whether
the plaintiff is entitled to all or some of the claims asserted therein.
Disposition The petition was GRANTED.
Prof. Victoria A.
15
Avena
E. SPECIAL RULES
MANUFACTURER'S DISTRIBUTORS, INC., V
YU SIU LIONG
11 SCRA 680
REYES, JBL; April 29 1966
NATURE
Appeal on points of law from an order of the CFI Manila sustaining and
affirming an order of the MTC Manila dismissing the original complaint for
want of jurisdiction.
FACTS
-Manufacturer's Distributors, Inc. had filed action in MTC Manila, Branch
III, seeking to compel Yu Siu Liong to accept delivery of 74,500 pieces of
plastifilm bags, balance of 100,000 pieces ordered by said Yu Sio Liong
and supplied by the Manufacturers Distributors; to pay P3,376.00, the
value of the 100,000 pieces of plastifilm bags ordered by him, plus 12%
interest per annum thereon until fully paid; and to pay the amount of
P844.00, for and as stipulated attorney's fees. Manuufacturers
Distributors also prayed for such other reliefs as may be deemed just and
equitable in the premises.
-Yu Sio Liong filed MTD on the ground that, the subject of the litigation
being specific performance, the same lay within the exclusive jurisdiction
of the CFI. MTC upheld Yu Sio Liong and dismissed the complaint.
ISSUE
WON the issue is incapable of pecuniary estimation, and is therefore not
within the jurisdiction of MTC
HELD
YES.
-There is no controversy, as to the contractual price for the plastifilm bags;
the dispute is whether or not Yu Sio Liong was justified in its refusal to
accept the delivery of the bags. This matter plainly is not capable of
pecuniary estimation, and, therefore, is not within the jurisdiction of the
MTC.
-Speaking of the original jurisdiction of the Justice of the Peace and
Municipal Courts, the Judiciary Act, as amended, in its sec88, after
conferring original jurisdiction in Justice of the Peace and Municipal
Courts over cases where the value of the subject matter or amount of the
demand does not exceed P5,000.00, provides nevertheless in its par2
that "The jurisdiction of a justice of the peace and judge of a municipal
court shall not extend to civil actions in which the subject of litigation is not
capable of pecuniary estimation, except in forcible entry and detainer
cases; nor to those which involve the legality of any tax, impost or
assessment; nor to actions involving admiralty or maritime jurisdiction; nor
to matters of probate, the appointments of trustees or receiver; nor to
actions for annulment of marriages; . . ." Jurisdiction over the classes of
cases thus excluded is conferred on the CFI (Judiciary Act, sec44).
-That Manufacturers Distributors's complaint also sought the payment by
Yu Sio Liong of P3,376.00 plus interest and attorney's fees, does not give
a pecuniary estimation to the litigation, for the payment of such amounts
can only be ordered as a consequence of the specific performance
primarily sought. In other words, such payment would be but an incident
or consequence of Yu Sio Liong's liability for specific performance. If no
such liability is judicially declared, the payment cannot be awarded.
Hence, the amounts sought do not represent the value of the subject of
litigation.
-Subject matter over which jurisdiction cannot be conferred by consent,
has reference, not to the res or property involved in the litigation nor to a
particular case, but to the class of cases, the purported subject of
litigation, the nature of the action and of the relief sought.
-The [Municipal Trial] Court has no jurisdiction of a suit for specific
performance of a contract, although the damages alleged for its breach, if
permitted, are within the amount of which that court has jurisdiction.
-Cruz vs. Tan (87 Phil. 627) is inapplicable. In said case, the plaintiff had
made an alternative prayer: specific performance or payment of the sum
of P644.31. The alternative prayer meant that the payment of the latter
sum was a pecuniary estimation of the specific performance sought, since
it would equally satisfy the claims of the plaintiffs. In the present case, the
payment in money is not an alternative equivalent, but a consequence or
result of the specific performance, and hence can not constitute a
pecuniary estimation thereof.
Disposition CFI order affirmed.
CRUZ V TAN
87 SCRA 627
JUGO; November 27, 1950
NATURE
Original action in the Supreme Court. Certiorari and prohibition with
injunction.
FACTS
- August 3, 1949: respondent Telesfora Yambao filed a complaint against
the petitioner Manuel Cruz, praying that the latter be ordered to finish the
construction of a house mentioned in the complaint, or to pay her the sum
of P644.31.
- Within ten days from the receipt of the summons, the petitioner filed a
motion for a bill of particulars, which was denied by the court.
- September 19, 1949: petitioner filed a motion to dismiss the case on the
ground that the CFI has no jurisdiction over the subject-matter of the suit
the demand contained in the prayer is only for P644.31, which falls
under the Justice of the Peace or the Judge of the Municipal Court. The
motion to dismiss was denied by the court, and trial for the merits was
also set.
- Order setting the case for trial on October 10, 1949 was received by
petitioners counsel on October 12 (two days after). Since the parties did
not appear at the trial, the court dismissed the case for lack of interest of
the parties on October 10, 1949.
- October 12, 1949: respondent Yambao filed a motion praying that the
trial of the case be set for November 14, 1949. The motion was heard on
October 15, 1949, but as the petitioners counsel received notice of the
said motion on Oct. 15, he could not appear in the said hearing.
ISSUE
1.
WON CFI has jurisdiction over the case.
HELD
NO
Ratio The jurisdiction of the respective courts is determined by the value
of the demand and not the value of the transaction out of which the
demand arose.
Reasoning
- The case comes within the exclusive original jurisdiction of the municipal
court or justice of the peace court.
Judiciary Act of 1948
SEC. 44. Original jurisdiction.CFI shall have original jurisdiction:
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Prof. Victoria A.
16
Avena
(c) In all cases in which the demand, exclusive of interest, or the value
of the property in controversy, amounts to more than two thousand
pesos.
SEC. 86. Jurisdiction of justices of the peace and judges of municipal
courts of chartered cities.
(b) Original jurisdiction in civil actions arising in their respective
municipalities, and not exclusively cognizable by the CFI.
SEC. 88. Original Jurisdiction in civil cases.
Xxx exclusive original jurisdiction where the value of the subjectmatter or amount of the demand does not exceed two thousand
pesos, exclusive of interest and costs.
- The alternative prayer for specific performance is also of the same value,
for the alternative prayers would not have been made in the complaint if
one was more valuable than the other; the specific performance
alternatively prayed for is capable of pecuniary estimation at P644.31.
DISPOSITION
Judge of CFI is declared without jurisdiction to try the case, and is ordered
to stop further proceedings by dismissing the case.
LAPITAN V SCANDIA
24 SCRA 477
REYES, J.B.L., July 31, 1968
FACTS
- Andres Lapitan has appealed directly to this Court against an order of
the CFI of Cebu, dismissing, for lack of jurisdiction, his complaint for
rescission and damages against appellees Scandia, Inc., of Manila and
General Engineering Co. of Cebu. Plaintiff avers that on April 17, 1963 he
purchased from Scandia, Inc., one ABC Diesel Engine; that he bought the
engine for running a rice and corn mill; that defendants had warranted and
assured him that all spare parts for said engine are kept in stock in their
stores, enabling him to avoid loss due to long periods of waiting, and that
defendants would replace any part of the engine that might break within
12 months after delivery.
- The cam rocker arm of the engine broke due to faulty material and
workmanship and it stopped functioning; the sellers were unable to send a
replacement until August 29, 1963; barely six days after replacement the
new part broke again due to faulty casting and poor material, so Lapitan
notified the sellers and demanded rescission of the contract of sale; he
sought return of the price and damages but defendants did not pay.
- Scandia, Inc., moved to dismiss the complaint on the ground that the
total amount claimed was only P8,735.00, and was within the exclusive
jurisdiction of the municipal court, under RA 3828, amending the Judiciary
Act by increasing the jurisdiction of municipal courts to civil cases
involving P10,000.00 or less. The CFI dismissed the action for lack of
jurisdiction. Lapitan appealed directly to this Court, arguing (1) that
rescission was incapable of pecuniary estimation, and (2) that as he
claimed moral and exemplary damages, besides the price of P3,735.00,
P4,000.00 actual damages, and P1,000.00 attorneys' fees, the value of
his demand exceeded the jurisdiction of the municipal court.
ISSUE/S
1. WON the city court has jurisdiction
HELD
1. YES.
Ratio Although the purpose of the action is to recover an amount plus
interest which comes within the original jurisdiction of the Justice of the
Peace Court, yet when said action involves foreclosure of chattel
mortgage covering properties valued at more than P10,000, the action
should be instituted before the CFI.
Reasoning In the case at bar, the amount sought to be recovered is
P1520 plus interest and costs, and chattel mortgage of properties valued
at P15340. It is therefore within the jurisdiction of the CFI.
Disposition Petition granted
A2010
inquiring whether the bank would honor the check and when he could go
personally to the bank for that purpose. That letter was received by the
bank. The executive vice-president wrote to Hernandez and informed him
that the check could not be honored for the time being because of
adverse events that had disrupted the bank's operations. What the vicepresident meant was that by reason of the letter of the Central Bank
Governor dated June 16, 1961 the operations of the Lucena bank were
suspended. The vice-president explained that because there was a run on
the bank its assets were exhausted, and so the check sent by Hernandez,
which check was drawn against the Lucena bank, could not be accepted.
The vice-president said that when Hernandez presented the check, the
Lucena bank was no longer in a position to honor withdrawals and that
had Hernandez paid cash, his payment would have been accepted. To
honor the check would have been tantamount to allowing a depositor (San
Pablo Colleges) to make a withdrawal but the Lucena bank could not
entertain withdrawals without the consent of the Central Bank examiners.
Payment by check was a disbursement.
Apparently, the vice-president did not take the trouble of asking the
Central Bank examiners whether the payment by check made by
Hernandez could be accepted. Hernandez himself who should have
known that the bank was a distressed bank which had suspended
operations and which was under the supervision of Central Bank
examiners, did not bother to take up his problem with the said examiners.
-Hernandez again asked the bank when he could deliver the check. The
executive vice-president told Hernandez that the bank could not yet honor
the check because it had not resumed its banking operations; that it was
awaiting the outcome of a case filed by the bank against the Central Bank;
that it might reopen in January, 1962, and that, anyway, the loan would not
be due until March 21, 1962.
Hernandez sent another letter and enclosed the original check (duly
endorsed) with his letter to the bank sent by registered mail and special
delivery. Letter was returned to Hernandez because the bank's manager
was allegedly in Manila. Undeterred, Hernandez again mailed the check to
the bank with the request that his mortgage be cancelled.
-Monetary Board had decided to liquidate the Lucena bank. To implement
the resolution of the Monetary Board for the Liquidation of the Lucena
bank, the Central Bank, pursuant to section 29 of its charter and on the
assumption that the Lucena bank was insolvent, filed with the Court of
First Instance of Manila a petition dated March 27, 1962 for assistance
and supervision in the liquidation of the Lucena bank. Court of First
Instance of Manila issued an order directing the Lucena bank to turn over
its assets to the Central Bank's authorized representative.
-Among the accounts receivable of the Lucena bank inventoried by the
Central Bank's representative was the account of Hernandez. In a letter
dated October 29, 1963 Hernandez informed the Central Bank that he had
sent to the Lucena bank on April 25, 1962 the check for P6,000. He again
requested that his mortgage be cancelled. The Associate Superintendent
of Banks in his answer returned the check to Hernandez and informed him
that, according to the Lucena bank's executive vice-president, the check
could not be applied to the payment of Hernandez' loan because the bank
was already closed when he received the check. Moreover, the check was
drawn against the current deposits of the San Pablo Colleges in the
Prof. Victoria A.
17
Avena
ISSUE/S
1. WON the action of the Hernandez spouses to compel them to honor the
check in question and to cancel the mortgage on their two lots is a real
action affecting title to real property which should have been filed in the
Court of First Instance of Rizal at Quezon City where the mortgaged lots
are situated.
2. WON Lucena bank had not lost its juridical personality after it was
placed under liquidation thus making it not fall under the jurisdiction of the
liquidation court
HELD
1. No it is a personal action.
Section 2(a), Rule 4 of the Rules of Court provides that "actions affecting
title to, or for recovery of possession, or for partition or condemnation of,
or foreclosure of mortgage on, real property, shall be commenced and
tried in the province where the property or any part thereof lies"
Note that the rule mentions an action for foreclosure of a real estate
mortgage but does not mention an action for the cancellation of a real
mortgage. In the instant case, the action is primarily to compel the
mortgagee to accept payment of the mortgage debt and to release the
mortgage.
That action, which is not expressly included in the enumeration
found in section 2(a) of Rule 4, does not involve the title to the
mortgage lots. It is a personal action and not a real action. The
mortgagee has not foreclosed the mortgage. Plaintiffs' title is not in
question. They are in possession of the mortgaged lots.
Hence, the venue of plaintiffs' personal action is the place where the
defendant or any of the defendants resides or may be found, or where the
plaintiff or any of the plaintiffs resides, at the election of the plaintiff (Sec.
2[b], Rule 4).
The plaintiffs in their brief confound a real action with an action in rem and
a personal action with an action in personam. They argue that their action
is not an action in rem and, therefore, it could be brought in a place other
than the place where the mortgaged lots are located.
A real action is not the same as an action in rem and a personal
action is not the same as an action in personam.
In a personal action, the plaintiff seeks the recovery of personal
property, the enforcement of a contract or the recovery of damages.
In a real action, the plaintiff seeks the recovery of real property, or,
as indicated in section 2(a) of Rule 4, a real action is an action
affecting title to real property or for the recovery of possession, or
for partition or condemnation of, or foreclosure of a mortgage on,
real property.
An action in personam is an action against a person on the basis of
his personal liability, while an action in rem is an action against the
thing itself, instead of against the person (1 C. J. S. 943-4), Hence, a
real action may at the same time be an action, in personam and not
necessarily an action in rem. In this case, the plaintiffs alleged in
their complaint that they were residents of San Juan, Batangas,
which in their brief they characterize as their legal residence and
which appears to be their domicile of origin.
On the other hand, it is indicated in the promissory note and mortgage
signed by them and in the Torrens title covering the mortgaged lots that
their residence is at 11 Chicago Street, Cubao, Quezon City, which
apparently is the place where the said lots are located. The plaintiffs did
not testify during the trial, So, they have no testimony in the records as to
their actual residence.
We hold that the trial court should have dismissed the action
because the venue thereof was improperly laid in Batangas. The
term "resides" in section 2[b] of Rule 4 refers to the place of actual
residence or the place of abode and not necessarily to the legal
residence or domicile (Dangwa Transportation Co., Inc. vs.
A2010
Sarmiento, L-22795, January 31, 1977, 75 SCRA 124, 128). (Of course,
the actual residence may also in some cases be the legal residence
or domicile.).
San Juan, Batangas might be the place where the plaintiffs have their
domicile or legal residence but there is no question that 11 Chicago
Street, Cubao, Quezon City is their place of abode or the place where
they actually reside. So, the action in this case, which is a personal action
to compel the defendants to honor the check in question and to cancel the
mortgage, should have been filed in Quezon City if the plaintiffs intended
to use their residence as the basis for their choice of venue.
The Central Bank points out that the redemption action of the Hernandez
spouses would ultimately affect the funds and property of the Lucena
Bank. Hence, the liquidation court is the competent tribunal to pass upon
the issue as to whether the Hernandez spouses could validly pay their
mortgage debt by means of the check of the San Pablo Colleges.
2. No. The liquidation court or the Manila court has exclusive jurisdiction to
entertain the claim of the Hernandez spouses.
At the time the Hernandez spouses filed in 1964 their consignation
complaint the Lucena bank was already under liquidation. The Manila
court in its order of March 28, 1963 had ordered the officers of the Lucena
bank to turn over to the Central Bank or to the receiver, the
Superintendent of Banks, all of its assets, properties and papers. Among
the assets turned over to the receiver was the outstanding or unpaid
account of the Hernandez spouses which appears in the inventory as:
"393. Hernandez, Francisco S., 11 Chicago St., Cubao, Q. C.
And among the papers or obligations turned over to the receiver was
Ledger No. 056 evidencing the deposit of the San Pablo Colleges in the
Lucena bank in the sum of P11,890.16, against which the check for
P6,000 was drawn. It was that check which the Hernandez spouses had
issued to pay their mortgage debt to the Lucena bank.
Under section 29 of the Central Bank Act, Republic Act No. 265, when the
Monetary Board, upon information submitted by the Superintendent of
Banks, finds a bank to be insolvent, it shall forbid the bank to do business
and it shall take care of its assets according to law.
In that case, if the Monetary Board finds out that the insolvent bank
cannot resume business with safety to its creditors, it shall through the
Solicitor General, file a petition in the Court of First Instance, praying for
the assistance and super vision of the court in the liquidation of the bank's
affairs. Thereafter, the Superintendent of Banks, upon order of the
Monetary Board and under the supervision of the court, shall convert to
money the bank's assets. "Sabido es que uno de los deberes primordiales
de un depositario es hacerse cargo inmediatamente de todo el activo y
pasivo de un banco" (Luy Lam & Co. vs. Mercantile Bank of China, 71
Phil. 573, 576).
The fact that the insolvent bank is forbidden to do business, that its
assets are turned over to the Superintendent of Banks, as a receiver,
for conversion into cash, and that its liquidation is undertaken with
judicial intervention means that, as far as lawful and practicable, all
claims against the insolvent bank should be filed in the liquidation
proceeding.
Prof. Victoria A.
18
Avena
resident.
COMMENCEMENT OF ACTION
CB V. CA
(supra)
FACTS
Consolidated cases. Issue was regarding the payment of the correct
docket fee.
RULING ON COMMENCEMENT OF ACTION
-It is not simply the filing of the complaint or appropriate initiatory pleading,
but the payment of the prescribed docket fee, that vests a trial court with
jurisdiction over the subject-matter or nature of the action. Where the
filling of the initiatory pleading is not accompanied by payment of the
docket fee, the court may allow the payment of the fee within a
reasonable time but in no case beyond the applicable prescriptive or
reglementary period.
- The prescriptive period therein mentioned refers to the period within
which a specific action must be filed. It means that in every case, the
docket fee must be paid before the lapse of the prescriptive period.
GO V TONG
G.R. No. 151942.
PANGANIBAN; November 27, 2003
NATURE
Petition for review on Certiorari
FACTS
- Petitioner Juana Go purchased a cashiers check of P500K from the Far
East Bank and Trust Company (FEBTC), private respondent Tong. On
Gos instruction, the cashiers check bore the words Final
Payment/Quitclaim after the name of payee Tong allegedly to insure that
Tong would honor his commitment that he would no longer ask for further
payments for his interest in the informal business partnership which he
and she had earlier dissolved. Tong deposited it with the words Final
Payment/Quitclaim already erased, hence, it was not honored.
- Tongs lawyer requested that the check be replaced with another payable
to Johnson Tong-Final Settlement/Quitclaim with same amount, the bank
charges to be paid by his client-Tong, which was denied by FEBTC. So,
Tong filed complaint against FEBTC and Go at RTC Manila. FEBTC and
Go answered that erasure was intentional, which justified the dishonor
and refusal to replace check.
- Case pending, Gos son, George, filed a criminal complaint against Tong
falsification of the check. The criminal complaint was dismissed.
- Tong filed Motion for Leave to File a Supplemental Complaint and to
Admit the Attached Supplemental Complaint which Supplemental
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Complaint alleged that Sps. Gos used their son to file the criminal
complaint against him which caused damages, hence, the prayer for an
increase in the amount of MD and ED sought to be recovered from P2.5M
to P55M and praying for the award of AD of P58K. RTC granted the
motion and admitted the Supplemental Complaint.
- Go filed a Manifestation of Deposit and deposited to the RTC Clerk of
Court P500K representing the amount of the check, subject to the
condition that it shall remain deposited until the disposition of the case.
MFRs of FEBTC and Go were denied.
- One of the defenses of FEBTC and Go: Tong cannot prosecute his
Supplemental Complaint, and the same should be dismissed, unless the
corresponding docket fee and legal fees for the monetary claims of P55M
are paid for.
- On Feb. 5, 1999, RTC, acting on the verbal motion of Tongs counsel,
allowed the release of petitioners P500K deposit to Tong. Later, RTC, in
the interest of justice and because of the huge amount of outlay involved
(the Court considers the business climate and the peso crunch prevailing),
allowed Tong to first deposit P25K on or before Dec.15, 1999 and P20K
every month thereafter until the full amount of docket fees is paid, and
only then shall the deposits be considered as payment of docket fees.
FEBTC and Go filed MFR but was denied. Hence, this case.
ISSUE
WON respondent judge and the CA erred in allowing private respondent to
pay the docket fee on a staggered basis.
HELD
NO
Ratio Docket fees should be paid upon the filing of the initiatory
pleadings. However, for cogent reasons to be determined by the trial
judge, staggered payment thereof within a reasonable period may be
allowed. Unless grave abuse of discretion is demonstrated, the discretion
of the trial judge in granting staggered payment shall not be disturbed.
Reasoning An action commences from the filing of the original complaint
and the payment of the prescribed docket fees. However, where the filing
of the initiatory pleading is not accompanied by payment of the docket fee,
the court may allow payment of the fee within a reasonable time but in no
case beyond the applicable prescriptive or reglementary period. (Sun
Insurance Office Ltd. V Asuncion) In other words, while the payment of the
prescribed docket fee is a jurisdictional requirement, even its nonpayment
at the time of filing does not automatically cause the dismissal of the case,
as long as the fee is paid within the applicable prescriptive or
reglementary period; more so when the party involved demonstrates a
willingness to abide by the rules prescribing such payment.
Disposition Petition is DENIED.
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authorized by law. Only when the court issued such order without or in
excess of jurisdiction or with grave abuse of discretion and when the
assailed interlocutory order is patently erroneous and the remedy of
appeal would not afford adequate and expeditious relief will certiorari be
considered an appropriate remedy to assail an interlocutory order. Such
special circumstances are absolutely wanting in the present case.
- Plainly, while the payment of the prescribed docket fee is a jurisdictional
requirement, even its non-payment at the time of filing does not
automatically cause the dismissal of the case, as long as the fee is paid
within the applicable prescriptive or reglementary period, more so when
the party involved demonstrates a willingness to abide by the rules
prescribing such payment. Thus, when insufficient filing fees were initially
paid by the plaintiffs and there was no intention to defraud the
government, the Manchester rule does not apply. Under the peculiar
circumstances of this case, the reinstatement of the complaint was just
and proper considering that the cause of action of private respondents,
being a real action, prescribes in thirty years, and private respondents did
not really intend to evade the payment of the prescribed docket fee but
simply contend that they could not be faulted for inadequate assessment
because the clerk of court made no notice of demand or reassessment.
They were in good faith and simply relied on the assessment of the clerk
of court.
- While the docket fees were based only on the real property valuation, the
trial court acquired jurisdiction over the action, and judgment awards
which were left for determination by the court or as may be proven during
trial would still be subject to additional filing fees which shall constitute a
lien on the judgment. It would then be the responsibility of the Clerk of
Court of the trial court or his duly authorized deputy to enforce said lien
and assess and collect the additional fees.
HELD
No.
Reasoning.. The Court held: We observe that in assuming jurisdiction
over the matter, the respondent judge reasoned out that where there is a
wrong there is a remedy and that courts of first instance are courts of
general jurisdiction.
The flaw in his reasoning lies in the assumption that Imperial suffered
some wrong at the hands of the board of judges. If at all, there was error
on the part of one judge, at most. Error and wrong do not mean the same
thing. "Wrong" as used in the aforesaid legal principle is the deprivation or
violation of a right. As stated before, a contestant has no right to the prize
unless and until he or she is declared winner by the board of referees or
judges
Granting that Imperial suffered some loss or injury, yet in law there are
instances of "damnum absque injuria". This is one of them. If fraud or
malice had been proven, it would be a different proposition. But then her
action should be directed against the individual judge or judges who
fraudulently or maliciously injured her. Not against the other judges
Disposition. The judiciary has no power to reverse the award of the
board of judges of an oratorical contest. For that matter it would not
interfere in literary contests, beauty contests and similar competitions
SANTIAGO V BAUTISTA
32 SCRA 188
BARREDO : MARCH 30, 1970
NATURE
Appeal from the order of the Court of First Instance of Cotabato
dismissing, on a motion to dismiss, its Civil Case No. 2012 for certiorari,
injunction and damages on the ground that the complaint therein states no
cause of action, and from the subsequent order of the court a quo denying
the motion for the reconsideration of the said order of dismissal.
FACTS
-Appellant Teodoro Santiago, Jr. was a pupil in Grade Six at the Sero
Elementary School in Cotabato City.
-When the school year was about to end the "Committee On The Rating
Of Students For Honor" was constituted by the teachers concerned at said
school for the purpose of selecting the "honor students" of its graduating
class. The above-named committee deliberated and finally adjudged
Teodoro C. Santiago, Jr. as third honor. The school's graduation exercises
were thereafter set for May 21, 1965; but three days before that date, the
"third placer" Teodoro Santiago, Jr., represented by his mother, and with
his father as counsel, sought the invalidation of the "ranking of honor
students" thus made, by instituting the civil case in the Court of First
Instance of Cotabato, against the committee members along with the
District Supervisor and the Academic Supervisor of the place.
SANTIAGOs alleged that: (1) Plaintiff-petitioner Teodoro C. Santiago, Jr.
is a sixth grader at the Sero Elementary School in Cotabato City
scheduled to be graduated on May 21st, 1965 with the honor rank of third
place, which is disputed; (2) That the teachers of the school had been
made respondents as they compose the "Committee on the Rating of
Student for Honor", whoserave abuse of official discretion is the subject of
suit, while the other defendants were included as Principal, District
Supervisor and Academic Supervisor of the school; (3) That Teodoro
Santiago, Jr. had been a consistent honor pupil from Grade I to Grade V
of the Sero Elementary School, while Patricia Ligat (second placer in the
disputed ranking in Grade VI) had never been a close rival of petitioner
before, except in Grade V wherein she ranked third; (4) That Santiago, Jr.
had been prejudiced, while his closest rival had been so much benefited,
by the circumstance that the latter, Socorro Medina, was coached and
tutored during the summer vacation of 1964 by Mrs. Alpas who became
the teacher of both pupils in English in Grade VI, resulting in the far lead
Medina obtained over the other pupil; (5) That the committee referred to in
this case had been illegally constituted as the same was composed of all
the Grade VI teachers only, in violation of the Service Manual for Teachers
of the Bureau of Public Schools which provides that the committee to
select the honor students should be composed of all teachers in Grades V
and VI; (6) That there are direct and circumstantial matters, which shall be
proven during the trial, wherein respondents have exercised grave abuse
of discretion and irregularities, such as the changing of the final ratings on
the grading sheets of Socorro Medina and Patricia Ligat; (7) That there
was a unanimous agreement and understanding among the respondent
teachers to insult and prejudice the second and third honors by rating
Socorro Medina with a perfect score, which is very unnatural; (8) That the
words "first place" in petitioner's certificate in Grade I was erased and
replaced with the words "second place", which is an instance of the unjust
and discriminating abuses committed by the respondent teachers in the
disputed selection of honor pupils they made; (9) That petitioner
personally appealed the matter to the School Principal, to the District
Supervisor, and to the Academic Supervisor, but said officials "passed the
buck to each other" to delay his grievances, and as to appeal to higher
authorities will be too late, there is no other speedy and adequate remedy
under the circumstances; and, that petitioner and his parents suffered
mental and moral damages in the amount of P10,000.00; and (10) The
petitioners prayed to the Court to set aside the final list of honor students
in Grade VI of the Sero Elementary School for that school year 19641965, and, during the pendency of the suit, to enjoin the respondent
teachers from officially and formally publishing and proclaiming the said
honor pupils in Grade VI in the graduation exercises the school was
scheduled to hold on the 21st of May of that year 1965.
LC: denied injunction
-As scheduled, the graduation exercises of the Sero Elementary School
for the school year 1964-1965 was held on May 21, with the same
protested list of honor students.
The Court then required the respondents to answer the petition within 10
days but respondents moved for the dismissal of the case instead on the
grounds (1) that the action for certiorari was improper, and (2) that even
assuming the propriety of the action, the question brought before the court
had already become academic. This was opposed by petitioner.
The motion to dismiss was granted.
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Upon receipt of a copy of the above-quoted order, the petitioner moved for
the reconsideration thereof, but the same was dismissed.
Petitioners appealed
ISSUE/S
WON the said committee of teachers does falls within the category of the
tribunal, board, or officer exercising judicial functions contemplated by
Rule 65
HELD:
1. NO (therefore, no cause of action exists)
Reasoning. In this jurisdiction certiorari is a special civil action instituted
against 'any tribunal, board, or officer exercising judicial functions.' A
judicial function is an act performed by virtue of judicial powers; the
exercise of a judicial function is the doing of something in the nature of the
action of the court. In order that a special civil action of certiorari may be
invoked in this jurisdiction the following circumstances must exist: (1) that
there must be a specific controversy involving rights of persons or
property and said controversy is brought before a tribunal, board or officer
for hearing and determination of their respective rights and obligations; (2)
the tribunal, board or officer before whom the controversy is brought must
have the power and authority to pronounce judgment and render a
decision on the controversy construing and applying the laws to that end;
(3) the tribunal, board or officer must pertain to that branch of the
sovereign power which belongs to the judiciary, or at least, which does not
belong to the legislative or executive department.
- It is evident, upon the foregoing authorities, that the so called committee
on the rating of students for honor whose actions are questioned in this
case exercised neither judicial nor quasi judicial functions in the
performance of its assigned task. Before a tribunal board, or officer may
exercise judicial or quasi judicial acts, it is necessary that there be a law
that give rise to some specific rights of persons or property under which
adverse claims to such rights are made, and the controversy ensuing
therefrom is brought, in turn, before the tribunal, board or officer clothed
with power and authority to determine what that law is and thereupon
adjudicate the respective rights of the contending parties.
- There is nothing on record about any rule of law that provides that when
teachers sit down to assess the individual merits of their pupils for
purposes of rating them for honors, such function involves the
determination of what the law is and that they are therefore automatically
vested with judicial or quasi judicial functions.
Dispositive. The judgment appealed from is affirmed, with costs against
appellant.
FACTS
- The land belongs to the plaintiff, in whose name the title was registered
before the war. During the Japanese occupation, the land was acquired by
a Japanese corporation, Taiwan Tekkosho, for the sum of P140,000, and
thereupon title thereto issued in its name. After liberation, the Alien
Property Custodian of the United States of America took possession,
control, and custody thereof under section 12 of the Trading with the
Enemy Act, for the reason that it belonged to an enemy national. During
the year 1946 the property was occupied by the Copra Export
Management Company under a custodianship agreement with United
States Alien Property Custodian, and when it vacated the property it was
occupied by the defendant herein. The defendant was authorized to repair
the warehouse on the land, and actually spent thereon the repairs the
sum of P26,898.27.
- Plaintiff brought an action in court to annul the sale of property of Taiwan
Tekkosho, and recover its possession. The case did not come for trial
because the parties presented a joint petition in which it is claimed by
plaintiff that the sale in favor of the Taiwan Tekkosho was null and void
because it was executed under threats, duress, and intimidation, and it
was agreed that the title issued in the name of the Taiwan Tekkosho be
cancelled and the original title of plaintiff re-issued.
- The present action is to recover the reasonable rentals from August,
1946, the date when the defendant began to occupy the premises, to the
date it vacated it.
ISSUE/S
1. WON defendant is liable for rent of the said period
HELD
1. No
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the two (2) unit Frequency Converter/Inverter will cause substantial losses
in its operations and requested for the early work out and the immediate
shipment of the frequency converter to avoid further loss to the company;
However, on 9 November 1997, DANFOSS, informed the other MINCI
through fax transmission, copy furnished plaintiff CCC, that the reason
why DANFOSS has delivery problems was that some of the supplied
components for the new VLT 5000 series did not meet the agreed quality
standard. That means that their factory was canvassing for another
supplier. And at that moment, there was no clear message when normal
production will resume.
-Due to this information received, CCC surmised that defendants MINCI
and DANFOSS could not be able to deliver the two (2) unit Frequency
Converter within the maximum period of ten (10) weeks period from the
opening of the Letter of Credit, as one of the conditions in the Purchase
Order. Thereafter, no definite commitment was received by plaintiff CCC
from defendants MINCI and DANFOSS for the delivery of the two unit
Frequency Converter.
-By reason of the delay to deliver, CCC informed MINCI in a letter dated
13 November 1997, of the plaintiffs intention to cancel the said order. As
a consequence thereof, CCC has suffered an actual substantial
production losses in the amount P8,064,000.00 due to the time lost and
delay in the delivery of the said two (2) unit Frequency Converter/Inverter.
Likewise, plaintiff CCC was compelled to look for another supplier.
- On February 17, 1999, DANFOSS filed a motion to dismiss the
complaint on the ground that it did not state a cause of action.
- The court a quo denied the motion to dismiss in its order[4] dated May
28, 1999.
- Danfoss filed a motion for reconsideration of the order but it was denied.
On appeal to the CA, the latter also denied Danfoss petition for lack of
merit. The CA likewise denied petitioners motion for reconsideration,
hence, this appeal.
ISSUE
WON the CA erred in affirming the denial by the court a quo of petitioners
motion to dismiss the complaint for damages on the ground that it failed to
state a cause of action.
NATURE
Petition for certiorari and prohibition seeking to annul and set aside the
order of the Securities and Exchange Commission (SEC)
HELD
YES.
Ratio. In order to sustain a dismissal on the ground of lack of cause of
action, the insufficiency must appear on the face of the complaint. And
the test of the sufficiency of the facts alleged in the complaint to constitute
a cause of action is whether or not, admitting the facts alleged, the court
can render a valid judgment thereon in accordance with the prayer of the
complaint. For this purpose, the motion to dismiss must hypothetically
admit the truth of the facts alleged in the complaint.
Reasoning. After a careful perusal of the allegations in respondents
complaint for damages against petitioner, we rule that the same failed to
state a cause of action. When respondent sued petitioner for damages,
petitioner had not violated any right of respondent from which a cause of
action had arisen. Respondent only surmised that petitioner would not be
able to deliver the two units frequency converter/inverter on the date
FACTS
- Carolina Hofilea is a stockholder of Pioneer Glass Manufacturing
Corporation, a domestic corporation engaged in the operation of silica
mines and the manufacture of glass and glassware. Since 1967, Pioneer
Glass had obtained various loan accommodations from the Development
Bank of the Philippines [DBP], and also from other local and foreign
sources which DBP guaranteed. The proceeds were used in the
construction of a glass plant in Rosario, Cavite, and the operation of
seven silica mining claims owned by the corporation.
- As security, Pioneer Glass mortgaged and/or assigned its assets to the
DBP in addition to the mortgages executed by some of its corporate
officers over their personal assets. Through the conversion into equity of
the accumulated unpaid interests on the various loans DBP was able to
gain control of the outstanding shares of common stocks of Pioneer
Glass, and to get three regular seats in the corporation's board of
directors.
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ISSUE/S
1. WON complain of the respondents states facts sufficient to constitute a
cause of action
HELD
1. NO
Ratio. A cause of action is an act or omission of one party in violation of
the legal rights of another, and its essential elements are: 1. legal right of
plaintiff, 2. correlative obligation of the defendant, and 3. act or omission
of defendant in violation of said legal right.
Reasoning. In this case, there was no omission on the part of the
defendant in vilation of the legal rights of the plaintiffs to be paid, because
EO No. 32 said debts are not yet payable or their payment cannot be
enforced until the legal cessation of the moratorium, which is still in force.
***BUT (not related to topic Cause of Action): even if the complaint of
the plaintiffs respondents states no cause of action, the SC holds that the
facts stated in the petition for certiorari and prohibition filed in the present
case do NOT entitle the petitioner to said reliefs. Because judge HAD
jurisdiction and did not exceed it or act with grave abuse of discretion in
denying the petitioners motion to dismiss. This Court, in actions of
certiorari, can only determine WON the court acted without or in excess of
its jurisdiction or with grave abuse of discretion. So disposition:
Disposition Petition is denied.
MISJOINDER
UNION GLASS V SEC (Hofilea)
126 SCRA 32
ESCOLIN; November 28, 1983
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ISSUE
1. WON the SEC has jurisdiction over the case and not the regular courts
HELD
1. NO.
Ratio In order that the SEC can take cognizance of a case, the
controversy must pertain to any of the following relationships: [a] between
the corporation, partnership or association and the public; [b] between the
corporation, partnership or association and its stockholders, partners,
members, or officers; [c] between the corporation, partnership or
association and the state in so far as its franchise, permit or license to
operate is concerned; and [d] among the stockholders, partners or
associates themselves.
Reasoning While the Rules of Court, which applies suppletorily to
proceedings before the SEC, allows the joinder of causes of action in one
complaint, such procedure however is subject to the rules regarding
jurisdiction, venue and joinder of parties. Since Union Glass has no intracorporate relationship with Hofilea, it cannot be joined as party-defendant
in said case as to do so would violate the rule on jurisdiction. Hofilea's
complaint against Union Glass for cancellation of the sale of the glass
plant should therefore be brought separately before the regular court.
- Such action, if instituted, shall be suspended to await the final outcome
of the SEC case, for the issue of the validity of the dacion en pago posed
in the SEC case is a prejudicial question, the resolution of which is a
logical antecedent of the issue involved in the action against Union Glass.
Thus, Hofilea's complaint against the latter can only prosper if final
judgment is rendered in SEC Case No. 2035, annulling the dacion en
Pago executed in favor of the DBP.
PARTIES
Who may be parties
JUASING HARDWARE V MENDOZA
115 SCRA 783
GUERRERO; July 30, 1982
NATURE
Special Civil Action for certiorari
FACTS
- Juasing Hardware, alleging to be a single proprietorship duly organized
and existing under and by virtue of the laws of the Philippines and
represented by its manager Ong Bon Yong, filed a complaint for the
collection of a sum of money against Pilar Dolla.
- In her Answer, defendant stated that she "has no knowledge about
plaintiff's legal personality and capacity to sue as alleged in the
complaint."
- After plaintiff had completed the presentation of its evidence and rested
its case, defendant filed a Motion for Dismissal of Action (Demurrer to
Evidence) based on plaintiff's lack of legal capacity to sue. Defendant
contended that Juasing Hardware is a single proprietorship, not a
corporation or a partnership duly registered in accordance with law, and
therefore is not a juridical person with legal capacity to bring an action in
court. Plaintiff filed an Opposition and moved for the admission of an
Amended Complaint.
- Judge Mendoza dismissed the case and denied admission of the
Amended Complaint. MFR was likewise denied
ISSUES
WON the lower court committed grave abuse of discretion when it
dismissed the case and refused to admit the Amended Complaint
HELD
YES
Ratio A defect in the designation of the parties may be summarily
corrected at any stage of the action provided no prejudice is caused
thereby to the adverse party. (Sec. 4, Rule 10, Revised Rules of Court)
Reasoning
- The complaint in the court below should have been filed in the name of
the owner of Juasing Hardware. The allegations in the body of the com.
plaint would show that the suit is brought by such person AS proprietor or
owner of the business conducted under the name and style Juasing
Hardware". The descriptive words "doing business as Juasing Hardware' "
may be added in the title of the case, as is customarily done.
- Rule 3 of the Revised Rules of Court , Sec. 1. Who may be parties.-Only
natural or juridical persons or entities authorized by law may be parties in
a civil action
- Petitioner is definitely not a natural person; nor is it a juridical person as
defined in the New Civil Code of the Philippines. 4 The law does not vest
juridical or legal personality upon the sole proprietorship nor empower it to
file or defend an action in court.
- However, the defect of the complaint is merely formal, not substantial.
Substitution of the party plaintiff would not constitute a change in the
Identity of the parties.
- The courts should be liberal in allowing amendments to pleadings to
avoid multiplicity of suits and in order that t he real controversies between
the parties are presented and the case decided on the merits without
unnecessary delay. This rule applies with more reason and with greater
force when the amendment sought to be made refers to a mere matter of
form and no substantial rights are prejudiced.
Dispositive Petition is GRANTED.
SEPARATE OPINION
AQUINO [concurring]
- It should appear in the amended complaint (a copy which was not
attached to the petition) that the plaintiff is Ong Hua or Huat, doing
business under the tradename, Juasing Hardware, and in the body of the
complaint the personal circumstances of Ong Hua should be stated.
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Parties in interest
CARILLO, GUYOT, SENOY, RISONAR, GONZALES V.
CA (DABON AND DABON)
GR No. 121165
QUISUMBING; September 26, 2006
NATURE
Review on certiorari of decision of Court of Appeals
FACTS
- Gonzales filed complaint (action for specific performance) against Manio
sps, seeking execution of deed of sale of property she bought fr Priscilla
Manio. Gonzales said she pd downpayment to Priscilla because she had
an SPA from her son Aristotle, the owner of the land.
- TC ruled in favor of Gonzales. Gonzales deposited balance w/ the court
and filed motion for execution, w/c was w/drawn bec decision wasnt
served on defendants. Sheriff finally served a copy at an ungodly hour of
12 mn.
- TCs decision became final and executory.
- The Dabons, claiming to have bought the land fr Aristotle, filed before the
CA a petition for annulment of judgment and orders of the TC. They
alleged that the decision was void for lack of jurisdiction over their persons
as the real parties in interest. CA issued resolution restraining TC from
implementing its decision. Hence, this petition by Gonzales.
ISSUE/S
1. WON there was basis to annul the decision of the TC.
2. WON the Dabons can seek annulment of the TC judgment
HELD
1. YES.
Ratio
An action should be brought against the real party in interest. The real
party in interest is the one who would be benefited or injured by the
judgment or is the one entitled to the avails of the suit.
Reasoning
- Named petitioners herein are Carillo (Presiding Judge), Guyot (Clerk of
Court), Senoy (Deputy Sheriff), Risonar (Registrar of Deeds), and
Gonzales. Carillo, Guyot, Senoy and Risonar are not interested parties
because they would not benefit from the affirmative reliefs sought. Only
Gonzales remains as genuine party-petitioner in this case.
- Gonzales insists that the Dabons have no right to seek annulment of the
TCs judgment bec theyre not parties to the specific performance case.
But the Dabons insist that they are parties in interest bec they are buyers,
owners and possessors of the contested land.
- The specific performance case brought by Gonzales to the TC named
Priscilla Manio and husband as defendants. However, the lot is owned by
Aristotle, their son. Priscilla had no interest on the lot and can have no
interest in the judgment of the TC. Failure to implead Aristotle Manio
renders the proceedings in the specific performance case null and void.
2. YES.
Ratio
A person need not be a party to the judgment sought to be annulled.
What is essential is that he can prove that the judgment was obtained by
fraud and he would be adversely affected thereby.
Reasoning
Although the Dabons are not parties to the specific performance case, any
finding of extrinsic fraud would adversely affect their ownership and could
be basis of annulment of judgment. In this case, Gonzales knew of the
sale of lot by Aristotle Manio to the Dabons yet Gonzales did not include
the Dabons in her petition. This is extrinsic fraud.
Disposition Petition is denied.
the items subject of the Consignment Agreement did not fall within the
classification of protected cultural properties and did not specifically
qualify as part of the Filipino cultural heritage. Hence, this petition.
- After the oral arguments of the parties, the application for preliminary
injunction to restrain the scheduled sale of the artworks was DENIED on
the ground that petitioners had not presented a clear legal right to a
restraining order and that proper parties had not been impleaded.
- The sale at public auction proceeded as scheduled and the proceeds of
$13,302,604.86 were turned over to the Bureau of Treasury.
- On motion of petitioners, 12 more were joined as additional petitioners
and Catalino Macaraig, Jr., in his capacity as former Executive Secretary,
the incumbent Executive Secretary, and Chairman Mateo A.T. Caparas
were impleaded as additional respondents.
ISSUE:
WON the instant petition complies with the legal requisites for this Court to
exercise its power of judicial review over this case.
HELD: NO. The paintings and silverware, which were taken from
Malacaang and the Metropolitan Museum of Manila and transferred to
the Central Bank Museum (the ownership of these paintings legally
belongs to the foundation or corporation or the members thereof.)
- The confiscation of these properties by the Aquino administration
however should not be understood to mean that the ownership of these
paintings has automatically passed on the government without complying
with constitutional and statutory requirements of due process and just
compensation. If these properties were already acquired by the
government, any constitutional or statutory defect in their acquisition and
their subsequent disposition must be raised only by the proper parties the true owners thereof -whose authority to recover emanates from their
proprietary rights which are protected by statutes and the Constitution.
Having failed to show that they are the legal owners of the artworks or that
the valued pieces have become publicly owned, petitioners do not
possess any clear legal right whatsoever to question their alleged
unauthorized disposition.
REASONING:
- Dumlao v. Comelec: The rule is settled that no question involving the
constitutionality or validity of a law or governmental act may be heard and
decided by the court unless there is compliance with the legal requisites
for judicial inquiry, namely: that the question must be raised by the proper
party; that there must be an actual case or controversy; that the question
must be raised at the earliest possible opportunity; and, that the decision
on the constitutional or legal question must be necessary to the
determination of the case itself. But the most important are the first two
(2) requisites.
- SC: we have held that one having no right or interest to protect cannot
invoke the jurisdiction of the court as party-plaintiff in an
action. (Sustiguer v. Tamayo, G.R. No. L-29341)
- This is premised on Sec. 2, Rule 3, of the Rules of Court, which
provides that every action must be prosecuted and defended in the
name of the real party-in-interest, and that all persons having interest
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in the subject of the action and in obtaining the relief demanded shall
be joined as plaintiffs.
- The Court will exercise its power of judicial review only if the case is
brought before it by a party who has the legal standing to raise the
constitutional or legal question. "Legal standing" means a personal
and substantial interest in the case such that the party has sustained
or will sustain direct injury as a result of the governmental act that is
being challenged. The term "interest" is material interest, an interest
in issue and to be affected by the decree, as distinguished from mere
interest in the question involved, or a mere incidental interest (House
International Building Tenants Association, Inc. v. Intermediate
Appellate Court, G.R. No. L-75287)
- Moreover, the interest of the party plaintiff must be personal and not
one based on a desire to vindicate the constitutional right of some
third and related party.
- Taada v. Tuvera : There are certain instances however when this Court
has allowed exceptions to the rule on legal standing, as when a citizen
brings a case for mandamus to procure the enforcement of a public duty
for the fulfillment of a public right recognized by the Constitution, and
(Pascual v. Secretary of Public Works) when a taxpayer questions the
validity of a governmental act authorizing the disbursement of public
funds.
-AS regards Mandamus: it does not fulfill the criteria for a mandamus suit.
Legaspi v. Civil Service Commission: a writ of mandamus may be issued
to a citizen only when the public right to be enforced and the concomitant
duty of the state are unequivocably set forth in the Constitution.
-In the case at bar, petitioners are not after the fulfillment of a positive duty
required of respondent officials under the 1987 Constitution. What they
seek is the enjoining of an official act because it is constitutionally
infirmed. Moreover, petitioners' claim for the continued enjoyment and
appreciation by the public of the artworks is at most a privilege and is
unenforceable as a constitutional right in this action for mandamus.
-As regards Taxpayers Suit: Neither can this petition be allowed as a
taxpayer's suit. Not every action filed by a taxpayer can qualify to
challenge the legality of official acts done by the government.
- A taxpayer's suit can prosper only if the governmental acts being
questioned involve disbursement of public funds upon the theory
that the expenditure of public funds by an officer of the state for the
purpose of administering an unconstitutional act constitutes a
misapplication of such funds, which may be enjoined at the request
of a taxpayer.
- -Obviously, petitioners are not challenging any expenditure involving
public funds but the disposition of what they allege to be public
properties. It is worthy to note that petitioners admit that the
paintings and antique silverware were acquired from private
sources and not with public money.
-Plaintiffs thus filed the instant special civil action for certiorari under Rule
65 of the Revised Rules of Court and ask this Court to rescind and set
aside the dismissal order on the ground that the respondent Judge
gravely abused his discretion in dismissing the action. Again, the parents
of the plaintiffs-minors not only represent their children, but have also
joined the latter in this case.
ISSUE
WON Civil Case No. 90-777 is a class suit
HELD
YES. The subject matter of the complaint is of common and general
interest not just to several, but to all citizens of the Philippines.
Consequently, since the parties are so numerous, it becomes
impracticable, if not totally impossible, to bring all of them before the court.
We likewise declare that the plaintiffs therein are numerous and
representative enough to ensure the full protection of all concerned
interests. Hence, all the requisites for the filing of a valid class suit under
Section 12, Rule 3 of the Revised Rules of Court are present both in the
said civil case and in the instant petition, the latter being but an incident to
the former.
-This case, however, has a special and novel element. Petitioners minors
assert that they represent their generation as well as generations yet
unborn. We find no difficulty in ruling that they can, for themselves, for
others of their generation and for the succeeding generations, file a class
suit. Their personality to sue in behalf of the succeeding generations can
only be based on the concept of intergenerational responsibility insofar as
the right to a balanced and healthful ecology is concerned. Such a right,
as hereinafter expounded, considers the "rhythm and harmony of nature."
Nature means the created world in its entirety. Such rhythm and harmony
indispensably include, inter alia, the judicious disposition, utilization,
management, renewal and conservation of the country's forest, mineral,
land, waters, fisheries, wildlife, off-shore areas and other natural
resources to the end that their exploration, development and utilization be
equitably accessible to the present as well as future generations.
Needless to say, every generation has a responsibility to the next to
preserve that rhythm and harmony for the full enjoyment of a balanced
and healthful ecology. Put a little differently, the minors' assertion of their
right to a sound environment constitutes, at the same time, the
performance of their obligation to ensure the protection of that right for the
generations to come.
Dispositive Petition granted. Challenged order set aside.
KINDS OF PARTIES
Compulsory joinder of indispensable
parties
ARCELONA V. CA (FARNACIO)
G.R. No. 102900
A2010
2. YES.
Ratio Co-owners in an action for the security of tenure of a tenant are
encompassed within the definition of indispensable parties; thus, all of
them must be impleaded.
Reasoning As held by the Supreme Court, were the courts to permit an
action in ejectment to be maintained by a person having merely an
undivided interest in any given tract of land, a judgment in favor of the
defendants would not be conclusive as against the other co-owners not
parties to the suit, and thus the defendant in possession of the property
might be harassed by as many succeeding actions of ejectment, as there
might be co-owners of the title asserted against him. The purpose of this
provision was to prevent multiplicity of suits by requiring the person
asserting a right against the defendant to include with him, either as coplaintiffs or as co-defendants, all persons standing in the same position,
so that the whole matter in dispute may be determined once and for all in
one litigation.
Prof. Victoria A.
26
Avena
NATURE
Petition for review
FACTS
-Olanday, et al. (petitioners) are co-owners pro-indiviso of a fishpond
which they inherited from their deceased parents.
-A contract of lease over the fishpond was executed between Cipriano
Tandoc and Olanday, et al.
-Private Respondent Moises Farnacio was appointed in turn by Tandoc as
caretaker-tenant of the same fishpond.
-After the termination of the lease contract, the lessee (Tandoc)
surrendered possession of the leased premises to the lessors, Olanday, et
al.
-Three days thereafter, Farnacio instituted Civil Case for "peaceful
possession, maintenance of security of tenure plus damages, with motion
for the issuance of an interlocutory order" against Olanday, et al., before
Respondent Regional Trial Court. The case was intended to maintain
private respondent as tenant of the fishpond.
-RTC ruled in favor of Farnacio
-IAC affirmed with slight modification
-SC sustained IAC
-Petitioners filed with CA a petition for annulment of the aforesaid
judgment. CA said to implead RTC
-Dissatisfied, petitioners lodged this petition for review
ISSUES
1. WON a final judgment may be annulled on the ground of lack of
jurisdiction (over the subject matter and/or over the person of
indispensable parties) and denial of due process, aside from extrinsic
fraud?
2. WON all the co-owners pro-indiviso of a real property indispensable
parties?
HELD
1. YES.
Ratio. Under the present procedure, aside from the reliefs provided in
these two sections (Secs. 1 & 2, Rule 38), there is no other means
whereby the defeated party may procure final and executory judgment to
be set aside with a view to the renewal of the litigation, unless (a) the
judgment is void for want of jurisdiction or for lack of due process of law,
or (b) it has been obtained by fraud.' (I Moran's Rules of Court 1950 Ed.,
p. 697, citing Anuran v. Aquino, 38 Phil. 29; Banco Espaol-Filipino v.
Palanca, 37 Phil. 921). Reason of public policy which favors the stability of
judicial decisions are (sic) mute in the presence of fraud which the law
abhors (Garchitorena vs. Sotelo, 74 Phil. 25).
Reasoning Jurisdiction is conferred by law. Its exercise must strictly
comply with the legal requisites; otherwise, a challenge on the ground of
lack of jurisdiction may be brought up anytime. Such jurisdiction normally
refers to jurisdiction over the subject.
obligation. Hence, each debtor is liable to pay for the entire obligation in
full. There is no merger or renunciation of rights, but only mutual
representation. Where the obligation of the parties is solidary, either of the
parties is indispensable, and the other is not even a necessary party
because complete relief is available from either. Therefore, jurisdiction
over Foronda is not even necessary as Tuazon may collect damages from
Mrs. Cerezo alone.
Disposition PETITION DENIED.
Permissive Joinder
FLORES V MALLARE-PHILLIPS
144 SCRA 377
FERIA; September 24,1986
CEREZO V. TUAZON
G.R. No. 141538
CARPIO; March 23, 2004
NATURE
Petition for review on certiorari
FACTS
-Country Bus Lines passenger bus with plate number NYA 241 collided
with a tricycle.
-tricycle driver Tuazon filed a complaint for damages against Mrs. Cerezo,
as owner of the bus line, her husband Attorney Juan Cerezo ("Atty.
Cerezo"), and bus driver Danilo A. Foronda ("Foronda").
-Mrs. Cerezo asserts that the trial court could not validly render judgment
since it failed to acquire jurisdiction over Foronda, an indispensable party.
Mrs. Cerezo points out that there was no service of summons on Foronda.
ISSUE
1. WON Fronda is an indispensable party
HELD
1. NO.
Ratio COMPULSORY JOINDER OF INDISPENSABLE PARTIES. An
indispensable party is one whose interest is affected by the courts action
in the litigation, and without whom no final resolution of the case is
possible
Reasoning Mrs. Cerezos liability as an employer in an action for a quasidelict is not only solidary, it is also primary and direct. Foronda is not an
indispensable party to the final resolution of Tuazons action for damages
against Mrs. Cerezo. The responsibility of two or more persons who are
liable for a quasi-delict is solidary. Where there is a solidary obligation on
the part of debtors, as in this case, each debtor is liable for the entire
NATURE
Appeal by certiorari from the order of the RTC of Baguio
FACTS
-Petitioner Remedio Flores filed a complaint with the RTC of Baguio: his
first cause of action was against respondent Ignacio Binongcal for
refusing to pay the amount of P11,643.00 representing cost of truck tires
which he purchased on credit from petitioner on various occasions from
August to October, 1981; and the second cause of action was against
respondent Fernando Calion for allegedly refusing to pay the amount of
P10,212.00 representing cost of truck tires which he purchased on credit
from petitioner on several occasions from March, 1981 to January, 1982.
-On December 15, 1983, counsel for respondent Binongcal filed a Motion
to Dismiss on the ground of lack of jurisdiction since the amount of the
demand against said respondent was only P11,643.00, and under Section
19(8) of BP129 the regional trial court shall exercise exclusive original
jurisdiction if the amount of the demand is more than twenty thousand
pesos (P20,000.00).
-It was further averred in said motion that although another person,
Fernando Calion, was allegedly indebted to petitioner in the amount of
P10,212.00, his obligation was separate and distinct from that of the other
respondent.
-At the hearing of said Motion to Dismiss, counsel for respondent Calion
joined in moving for the dismissal of the complaint on the ground of lack of
jurisdiction.
-RTC dismissed the complaint for lack of jurisdiction.
-Petitioner appealed by certiorari to the SC
ISSUE
WON the application of the totality rule in Sec 33(1) 5 of BP 129 and
5
Provided,That where there are several claims or causes of action between the same or different
parties, embodied in the same complaint, the amount of the demand shall be the totality of the
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Prof. Victoria A.
27
Avena
HELD
Petitioner maintains that the RTC has jurisdiction over the case following
the "novel" totality rule introduced in Section 33(l) of BP129 and Section
11 of the Interim Rules.
-Petitioner compares the above-quoted provisions with the former rule
under Section 88 of the Judiciary Act of 1948 as amended which reads as
follows: Where there are several claims or causes of action between the
same parties embodied in the same complaint, the amount of the demand
shall be the totality of the demand in all the causes of action , irrespective
of whether the causes of action arose out of the same or different
transactions; but where the claims or causes of action joined in a single
complaint are separately owned by or due to different parties, each
separate claim shall furnish the jurisdictional test, and argues that with the
deletion of the proviso in the former rule, the totality rule was reduced to
clarity and brevity and the jurisdictional test is the totality of the claims in
all, not in each, of the causes of action, irrespective of whether the causes
of action arose out of the same or different transactions.
-This argument is partly correct. There is no difference between the former
and present rules in cases where a plaintiff sues a defendant on two or
more separate causes of action. In such cases, the amount of the demand
shall be the totality of the claims in all the causes of action irrespective of
whether the causes of action arose out of the same or different
transactions.
-There is a difference between the former and present rules in cases
where two or more plaintiffs having separate causes of action against a
defendant joined in a single complaint.
-Under the former rule, "where the claims or causes of action joined in a
single complaint are separately owned by or due to different parties, each
separate claim shall furnish the jurisdictional test. As worded, the former
rule applied only to cases of permissive joinder of parties plaintiff.
However, it was also applicable to cases of permissive joinder of parties
defendant.
-Under the present law, the totality rule is applied also to cases where
two or more plaintiffs having separate causes of action against a
claims in all the causes of action, irrespective of whether the causes of action arose out of the
same or different transactions. ...
Application of the totality rule.-In actions where the jurisdiction of the court is dependent on the
amount involved, the test of jurisdiction shall be the aggregate sum of all the money demands,
exclusive only of interest and costs, irrespective of whether or not the separate claims are owned
by or due to different parties. If any demand is for damages in a civil action, the amount thereof
must be specifically alleged.
Permissive joinder of parties.-All persons in whom or against whom any right to relief in respect
to or arising out of the same transaction or series of transactions is alleged to exist, whether jointly,
severally, or in the alternative, may, except as otherwise provided in these rules, join as plaintiffs or
be joined as defendants in one complaint, where any question of law or fact common to all such
plaintiffs or to all such defendants may arise in the action; but the court may make such orders as
may be just to prevent any plaintiff or defendant from being embarrassed or put to expense in
aconnection with any proceedings in which he may have no interest.
Class suit
NEWSWEEK V IAC (NFSPI et. al.)
142 SCRA 171
FERIA; May 30, 1986
NATURE
Special action for certiorari, prohibition with preliminary injunction
FACTS
- Petitioner, NEWSWEEK, Inc. seeks to annul the decision of the IAC
sustaining the Order of the CFI Bacolod City. CFI denied Newsweeks
Motion to Dismiss complaint for libel. (Question as to whether the printed
article sued upon its actionable or not is a matter of evidence.)
- Initial complaint: Private respondents, incorporated associations of
sugarcane planters in Negros Occidental claiming to have 8,500 members
and several individual sugar planters, filed in their own behalf and/or as
a class suit in behalf of all sugarcane planters in the province of
Negros Occidental, against petitioner and two of petitioners' non-resident
correspondents/reporters Fred Bruning and Barry Came.
- It was alleged that they committed libel by the publication of the article
"An Island of Fear" in the Feb 23, 1981 issue of petitioner's weekly news
magazine Newsweek. It supposedly portrayed their island as a place
dominated by big landowners who not only exploited the impoverished
and underpaid sugarcane workers, but also brutalized and killed them.
- Complainants therein alleged that said article, taken as a whole,
showed a deliberate and malicious use of falsehood, slanted
presentation and/or misrepresentation of facts.
- They prayed that defendants be ordered to pay them PlM as actual and
compensatory damages, and such amounts for moral, exemplary and
corrective damages as the court may determine.
- NEWSWEEK filed a motion to dismiss on the grounds that --(1) the printed article sued upon is not actionable in fact and in law; and
(2) the complaint is bereft of allegations that state, much less support a
cause of action. It pointed out the non-libelous nature of the article and,
consequently, the failure of the complaint to state a cause of action.
- NO CAUSE OF ACTION because no allegation that anything contained
in the article regarding sugarcane planters referred specifically to any one
of the private respondents; that libel can be committed only against
individual reputation; and that in cases where libel is claimed to have been
directed at a group, there is actionable defamation only if the libel can be
said to reach beyond the mere collectivity to do damage to a specific,
individual group member's reputation.
ISSUE
1. WON respondents failed to state a cause of action
2. WON this case is a class suit
HELD
1. YES
Ratio Defamatory matter which does not reveal the Identity of the person
upon whom the imputation is cast, affords no ground of action unless it be
shown that the readers of the libel could have identified the personality of
the individual defamed. It is evident that the larger the collectivity, the
more difficult it is for the individual member to prove that the defamatory
remarks apply to him.
2. NO
Ratio It is not a case where one or more may sue for the benefit of all
(Mathay vs. Consolidated Bank and Trust Co.) or where the
representation of class interest affected by the judgment or decree is
indispensable to make each member of the class an actual party (Borlaza
vs. Polistico). We have here a case where each of the plaintiffs has a
separate and distinct reputation in the community. They do not have a
common or general interest in the subject matter of the controversy.
CLASS SUIT
- Where the defamation is alleged to have been directed at a group or
class, it is essential that the statement must be so sweeping or allembracing as to apply to every individual in that group or class, or
sufficiently specific so that each individual in the class or group can
prove that the defamatory statement specifically pointed to him, so that he
can bring the action separately, if need be.
Disposition The decision of the Intermediate Appellate Court is reversed
and the complaint in Civil Case No. 15812 of the CFI Negros Occidental is
dismissed, without pronouncement as to costs.
A2010
lots in the Rivera Village. The CA ruled that the case can be construed as
a class suit instituted by the Rivera Village lessees. The homeowners
association, considered as the representative of the lessees, merely
instituted the suit for the benefit of its members. It does not claim to have
any right or interest in the lots occupied by the lessees, nor seek the
registration of the titles to the land in its name.
- MIAA argues that the petition filed by the homeowners association with
the trial court fails to state a cause of action because the homeowners
association is not the real party-in-interest in the suit. Allegedly, the Board
Resolution presented by respondent shows that it was only the board of
directors of the association, as distinguished from the members thereof,
which authorized respondent to act as its representative in the suit.
Prof. Victoria A.
28
Avena
NATURE
Petition for Review on Certiorari filed by the MIAA assailing the Decision
of the CA which directed the issuance of a writ of preliminary injunction
restraining petitioner from evicting the homeowners of Rivera Village from
their dwellings.
FACTS
-The then Civil Aeronautics Administration (CAA) was entrusted with the
administration, operation, management, control, maintenance and
development of the Manila International Airport (MIA), now the NAIA. The
CAA entered into individual lease contracts with its employees for the
lease of portions of a 4-hectare lot situated in Rivera Village, Barangay
199 and 200 in Pasay City. The leases were for a 25-year period to
commence on May 25, 1965 up to May 24, 1990 at P20 per annum as
rental.
- Thereafter, EO 778 was issued (later amended by EO 903), creating
MIAA, transferring existing assets of the MIA to MIAA, and vesting the
latter with the power to administer and operate the MIA.
- MIAA stopped issuing accrued rental bills and refused to accept rental
payments from the lessees. As a result, respondent homeowners
association, purportedly representing the lessees, requested MIAA to sell
the subject property to its members, invoking the provisions of PD 1517 or
the Urban Land Reform Act and PD 2016. The MIAA denied the request,
claiming that the subject property is included in its Conceptual
Development Plan intended for airport-related activities.
- Respondent filed a petition for mandamus and prohibition with prayer for
the issuance of a preliminary injunction against MIAA and the National
Housing Authority (NHA) with the RTC of Pasay. The petition sought to
restrain the MIAA from implementing its Conceptual Development Plan
insofar as Rivera Village is concerned and to compel MIAA to segregate
Rivera Village from the scope of the Conceptual Development Plan and
the NHA to take the necessary steps for the disposition of the property in
favor of the members of the homeowners association.
- After the preliminary, the RTC denied the prayer for the issuance of a
temporary restraining order and/or writ of preliminary injunction and
dismissed the petition for lack of merit. The trial court held, among others,
that the petition failed to state a cause of action inasmuch as respondent
homeowners association is not the real party-in-interest, the individual
members of the association being the ones who have possessory rights
over their respective premises. Moreover, the lease contracts have
already expired.
- Upon appeal, the CA annulled and set aside the order of the trial court
and remanded the case for further proceedings. A writ of preliminary
injunction was issued restraining and preventing respondent MIAA from
evicting the members of Rivera Village Association from their respective
ISSUE
WON the petition filed by respondent with the trial court states a cause of
action against petitioner/ WON respondent has personality to sue
HELD
YES
The 1997 Rules of Civil Procedure requires that every action must be
prosecuted or defended in the name of the real party-in-interest, i.e., the
party who stands to be benefited or injured by the judgment in the suit, or
the party entitled to the avails of the suit. A case is dismissible for lack of
personality to sue upon proof that the plaintiff is not the real party-ininterest, hence grounded on failure to state a cause of action.
The petition before the trial court was filed by the homeowners
association, represented by its President, Panfilo R. Chiutena, Sr., upon
authority of a Board Resolution empowering the latter to file "All necessary
action to the Court of Justice and other related acts necessary to have our
Housing Project number 4 land be titled to the members of the
Association."
Obviously, the petition cannot be considered a class suit under Sec. 12,
Rule 3 of the Rules of Court, the requisites therefor not being present in
the case, notably because the petition does not allege the existence and
prove the requisites of a class suit, i.e., that the subject matter of the
controversy is one of common or general interest to many persons and
the parties are so numerous that it is impracticable to bring them all before
the court, and because it was brought only by one party.
In Board of Optometry v. Colet, it was held that courts must exercise
utmost caution before allowing a class suit, which is the exception to the
requirement of joinder of all indispensable parties. For while no difficulty
may arise if the decision secured is favorable to the plaintiffs, a quandary
would result if the decision were otherwise as those who were deemed
impleaded by their self-appointed representatives would certainly claim
denial of due process.
There is, however, merit in the appellate courts pronouncement that the
petition should be construed as a suit brought by the homeowners
association as the representative of the members thereof under Sec. 3,
Rule 3 of the Rules of Court, which provides:
Sec. 3. Representatives as parties. Where the action is allowed to be
prosecuted or defended by a representative or someone acting in a
fiduciary capacity, the beneficiary shall be included in the title of the case
A2010
Prof. Victoria A.
29
Avena
NATURE
Direct appeal from the decision of the CFI which dismiss the case for
Damages due to the death of plaintiff
FACTS
1960: Deaf-mute Mario del Castillo fell upon alighting the bus of the
respondents and died.
1962: Action for recovery of damages was filed by Severo del Castillo, the
father of the victim, against the driver, conductor, and the owner
companies.
1966: Severo died. Counsel for Motion for Annulment Proceedings after
having learned that plaintiff Severo already died without resting his case.
Court ordered plaintiffs counsel to verify existence of heirs willing to be
substituted as parties-plaintiffs. Allegedly, a Deed of Assignment was
executed by Severo in favor of his son-in-law Wenceslao Haloc of all his
rights in the proceedings in 1960 so plaintiff filed a Motion to Admit
Amended Complaint, substituting Wenceslao as party-plaintiff. Amended
Complaint was admitted by the court.
CFI: dismissed original and amended complaints due to the death of
Severo. Wenceslao had no personality to continue the case, not being a
heir of Severo.
ISSUE
1. WON the complaint should be dismissed due to the death of the
plaintiff, even if he had already assigned his rights before he died
2. WON damages should have been awarded
HELD
1. NO
Ratio. Where an assignable right has been transferred before action
brought, the proceeding ought to be instituted in the name of the
assignee; and where an assignment is effected pendente lite, it is proper
to have the assignee substituted for the original plaintiff. If such
substitution should not be effected and the transfer of the right of action
should not be brought to the attention of the court, the original plaintiff, if
successful in the litigation, would hold the fruits of the action as a sort of
trustee for the use and benefit of his assignee.
Reasoning. This is not a case where the provisions of Section 17, Rule 3
of the Rules of Court on "death of a party" are applicable. Rather, it is a
situation where plaintiff, while alive, had assigned his rights to another, in
which case, the proper procedure would have been for the transferee to
have been substituted for the transferor as plaintiff. The rights of Severo to
claim damages for his son were transferable. Severo had transferred his
rights as plaintiff to Wenceslao Haloc but after the assignment the case
continued in Severo's name and there was no immediate and formal
substitution of party plaintiff. This is but a formality, however, and the fact
remains that, after the assignment, the substantial plaintiff and real party
in interest became Haloc, with Severo as a sort of trustee of whatever
fruits the litigation would bring.
2. YES
Reasoning. Articles 1764 and 2206 of the Civil Code. Failure to exercise
extraordinary care for the safety of its passengers even after being
apprised of the fact that the victim was a deaf-mute. Should have been
remanded to CA for determination of amount of damages but due to
pendency of case for 13 years + put an end to controversy, Court imposed
P12,000 for death of victim, plus P2,000 attys fees
Disposition. WHEREFORE, the judgment appealed from is hereby
reversed, and defendants hereby ordered jointly and severally, to pay
Wenceslao Haloc, the amount of P12,000.00 as damages for death,
without interest, and P2,000.00 as attorney's fees. No costs. SO
ORDERED.
GOJO V GOYALA
35 SCRA 557
Barredo, J.: Oct. 30, 1970
NATURE
Appeal from a decision of the CFI of Sorsogon
FACTS
-Appellee Segundo Goyala, with his now deceased wife Antonina sold to
Gojo a 2.5 hectare parcel of agricultural land for P750 by a Deed of Pacto
de Retro Sale, the repurchase to be made within one year, as stated in
the deed. The deed also indicates that the vendee paid another P100 in
addition to the purchase price. 10 years after the execution of said
document, Gojo filed a case with the CFI against Goyala by way of a
petition for consolidation of ownership of said land. Gojo alleged that the
period for repurchasing had expired and ownership had become
consolidated in him and that for purposes of recording the consolidation in
the Registry of Property, it was necessary that a judicial order be issued to
that effect.
-Goyala filed an answer to the petition, alleging that they had obtained a
cash loan of P810 from Gojo payable w/in one year w/o interest and that
to guarantee payment, Goyala executed a mortgage in favor of the
petitioner on the parcel of land in question. Hence, although the deed was
executed in the form of a pacto de retro sale, the true intention of the
parties was for it to be a mere mortgage to secure payment. Goyala
further claimed that he and his wife attempted to pay the debt but
petitioner refused to receive the sum and cancel the mortgage. By way of
counterclaim, Goyala prayed that petitioner receive the P810 and that the
document of mortgage be declared so, and not a pacto de retro sale. He
further prayed for P1800 per annum until the final termination of the case
for the fruits of said property and in the case that the instrument be
deemed a true pacto de retro sale, that petitioner be ordered to execute a
deed of resale in favor of respondents in accordance with A1606CC.
-Counsel for Goyala filed a manifestation informing the TC that the named
defendant, Antonina, had died, prompting the TC to issue an order
requiring counsel for the plaintiff to submit an amended Complaint
substituting Antonina with one of her successors in interest as party
defendants. Goyala filed a motion to dismiss the petition on the ground
VENUE
PEOPLE v. MAYOR PABLO SOLA
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(page 8)
PROCEDURE
- Villegas and Enrile filed a Motion for leave to take the depositions "of
Mr. Anthony Gonzales, Time-life International", and "Mr. Cesar B.
Enriquez, Muller & Phipps (Manila) Ltd.", in connection with the activities
and operations in the Philippines of the petitioner. It was granted by
Judge Reyes and he also issued a writ of attachment on the real and
personal estate of Time, Inc.
- Time Inc. filed a motion to dismiss the complaint for lack of jurisdiction
and improper venue, relying upon the provisions of Republic Act 4363
Prof. Victoria A.
30
Avena
FACTS
(According to this law, 'The criminal and civil action for damages in cases of written
defamations. . .where one of the offended parties is a public officer whose office is in
the City of Manila at the time of the commission of the offense, the action shall be
filed in the Court of First Instance of the City of Manila or of the city or province
where the libelous article is printed and first published, and in case such public
officer does not hold office in the City of Manila, the action shall be filed in the Court
of First Instance of the province or city where he held office at the time of the
commission of the offense or where the libelous article is printed and first published).
of the commission of the offense, in case the libelous article was first
printed or published outside the Philippines.
Reasoning:
a. (Intent of the law) The assertion that a foreign corporation or a nonresident defendant is not inconvenienced by an out-of-town suit is
irrelevant and untenable, for venue and jurisdiction are not dependent
upon convenience or inconvenience to a party; and moreover, venue was
fixed under Republic Act No. 4363, pursuant to the basic policy of the law
that is, as previously stated, to protect the interest of the public service
when the offended party is a public officer, by minimizing as much as
possible any interference with the discharge of his duties.
b. (Textual and strict interpretation of the law) The rule is that where a
statute creates a right and provides a remedy for its enforcement, the
remedy is exclusive; and where it confers jurisdiction upon a particular
court, that jurisdiction is likewise exclusive, unless otherwise provided.
Hence, the venue provisions of Republic Act No 4363 should be deemed
mandatory for the party bringing the action, unless the question of venue
should be waived by the defendant, which was not the case here.
2. Yes.
Ratio: The action of a court in refusing to rule, or deferring its ruling, on a
motion to dismiss for lack of jurisdiction over the subject matter, or for
improper venue, is in excess of jurisdiction and correctible by writ of
prohibition or certiorari sued out in the appellate Court, even before trial
on the merits is had.
Reasoning
It would be useless and futile to go ahead with the proceedings if the court
had no jurisdiction.
DISPOSITION
The writs applied for are granted: the respondent Court of First Instance of
Rizal is declared without jurisdiction to take cognizance of its Civil Case
No. 10403; and its orders issued in connection therewith are hereby
annulled and set aside. Respondent court is further commanded to desist
from further proceedings in Civil Case No. 10403 aforesaid.
The writ of preliminary injunction heretofore issued by this Supreme Court
is made permanent.
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Prof. Victoria A.
31
Avena
Petitioner moved for the dismissal of the complaint on the ground of
improper venue, citing a common provision in the mobiline service
agreements to the effect that "Venue of all suits arising from this Agreement or any other suit directly or
indirectly arising from the relationship between PILTEL and subscriber
shall be in the proper courts of Makati, Metro Manila. Subscriber hereby
expressly waives any other venues."
- In an order, the RTC denied petitioner's MTD and required it to file an
answer within 15 days from receipt thereof.
- PILTEL filed a MFR, through registered mail, of the order of the trial
court. In its subsequent order, TC denied the MFR.
- Petitioner filed a petition for certiorari under Rule 65 of the Revised
Rules of Civil Procedure before the CA.
- CA saw no merit in the petition and affirmed the assailed orders of the
TC. Petitioner moved for a reconsideration, but the appellate court denied
the motion.
ISSUE/S
WON parties may stipulate on the venue of any litigation between them
HELD
YES
Ratio Section 4, Rule 4, of the Revised Rules of Civil Procedure allows
the parties to agree and stipulate in writing, before the filing of an action,
on the exclusive venue of any litigation between them. Such an
agreement would be valid and binding provided that the stipulation on the
chosen venue is exclusive in nature or in intent, that it is expressed in
writing by the parties thereto, and that it is entered into before the filing of
the suit.
Reasoning. The provision contained in paragraph 22 of the "Mobile
Service Agreement," a standard contract made out by petitioner PILTEL to
its subscribers, apparently accepted and signed by respondent. The
added stipulation that the subscriber "expressly waives any other venue"
should indicate, clearly enough, the intent of the parties to consider the
venue stipulation as being preclusive in character.
The appellate court, however, would appear to anchor its decision on the
thesis that the subscription agreement, being a mere contract of adhesion,
does not bind respondent on the venue stipulation. But such an
agreement is not per se inefficacious. The rule instead is that, should
there be ambiguities in a contract of adhesion, such ambiguities are to be
construed against the party that prepared it. If, however, the stipulations
are not obscure, but are clear and leave no doubt on the intention of the
parties, the literal meaning of its stipulations must be held controlling.
A contract duly executed is the law between the parties, and they are
obliged to comply fully and not selectively with its terms. A contract of
adhesion is no exception.
Disposition WHEREFORE, the instant petition is GRANTED.
PLEADINGS
in truth show that there was such an open, uninterrupted, peaceful and
adverse possession in the concept of owner
It is a familiar doctrine," according to Justice J.B.L. Reyes in Joe's Radio
& Electrical Supply v. Alto Electronics Corp., 5 "that an admission made in
the pleadings cannot be controverted by the party making such admission
and are conclusive as to him, and that all proofs submitted by him contrary
thereto or inconsistent therewith, should be ignored, whether objection is
interposed by the party or not ... ." 6 Even if there had been a full hearing
on the case, therefore, the result would not have been any different. There
was no choice then for the lower court except to dismiss the complaint.
The present counsel of Santiago tries to extricate himself
from a predicament of his own making by arguing that the motion to
dismiss of Pacita de los Santos is not entitled to recognition as there was
a general order of default except as to the Bureau of Lands and the
Bureau of Forestry, not lifted as to her and that she has no interest to
oppose the application although admittedly there was a claim on her part
under a pasture lease agreement in her favor. But in the motion to
dismiss of de los Santos, it was alleged that the son of Santiago, Juanito
was one time the lessee of the timber area sought to be registered by
Santiago. There was no denial of such allegation. It is quite obvious then
that the facts, no less than the law, call for precisely the conclusion
reached by the then Judge Muoz Palma.
"Rules of pleading are intended to secure a method by which the issues
may be properly laid before the court. When those issues are already
clear before the court, the deficiency in the observance of the rules should
not be given undue importance. What is important is that the case be
decided upon the merits and that it should not be allowed to go off on
procedural points. Technicalities, in the appropriate language of Justice
Makalintal, "should give way to the realities of the situation." 13 Well could
Justice Cardozo observe: "A system of procedure is perverted from its
proper function when it multiplies impediments to justice without the
warrant of clear
necessity."
Dispositive. WHEREFORE, the appealed order of November 17, 1961 of
the then Judge Muoz Palma is affirmed. Costs against appellant Luis R.
Santiago
The Claim
Counterclaim/cross-claim
answer
NAMARCO v. FEDERACION
49 SCRA 238
ANTONIO; January 31, 1972
NATURE
after
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Prof. Victoria A.
32
Avena
FACTS
- NAMARCO is a GOCC organized and existing under and by virtue of RA
1345. FEDERATION is a non-stock corporation duly organized and
existing under and by virtue of the laws of the Philippines.
- They entered into a Contract of Sale which says that the Management of
NAMARCO was authorized to import items worth $2,001,031.
FEDERATION deposited P200,000 as partial payment and the balance
shall be paid on cash basis upon delivery of the duly indorsed negotiable
shipping document covering the same and
- To insure payment, the NAMARCO accepted three domestic letters of
credit for the account of the FEDERATION.
- The FEDERATION and some of its members filed a complaint against
the NAMARCO for specific performance and damages, alleging that after
the NAMARCO had delivered a great portion of the goods listed in the
Contract of Sale, it refused to deliver the other goods mentioned in the
said contract.
- CFI ordered the NAMARCO to specifically perform its obligation in the
Contract of Sale, by delivering to the FEDERATION the undelivered
goods.
- SC: The Contract of Sale was valid."
- NAMARCO: FEDERATION'S act or omission in refusing to satisfy the
former's valid, just and demandable claim has compelled it to file the
instant action; and praying that the FEDERATION be ordered to pay the
NAMARCO the costs of merchandise plus damages.
- FEDERATION moved to dismiss the complaint on the ground that the
cause of action alleged therein is barred forever, pursuant to section 6 of
Rule 10 of the Rules of Court. In support thereof, the FEDERATION
alleged it filed a case for specific performance to enforce compliance with
the contract of sale; that said contract is also the basis NAMARCO's
present complaint; that when NAMARCO filed its answer to the complaint,
it did not set up any counterclaim therein; that the CFI promulgated the
decision in said case ordering, among others, the NAMARCO to
specifically perform its obligation under the contract of sale by delivering
to the FEDERATION the goods subject-matter of the contract as are
involved in the complaint.
- NAMARCO opposed the motion to dismiss contending that its claim for
the recovery of the cost of merchandise delivered to the FEDERATION is
not necessarily connected for specific performance and, therefore, does
not fall under the category of compulsory counterclaim; that NAMARCO's
failure to set it up as a counterclaim in its answer does not constitute res
judicata; that the deliveries of the merchandise were effected through the
fault or negligence of one of its personnel, Juan T. Arive, who was
administratively charged therefor, found guilty and accordingly dismissed.;
that the present claim is not necessarily connected with the transaction or
occurrence that is the subject matter of Civil Case No. 42684, as the same
evidence would not support or refute both.
- The FEDERATION filed a rejoinder reiterating that the requirements on
the rule of compulsory counterclaim are present; that the first requirement
that the counterclaim arises out of or is necessarily connected with the
ISSUE
WON this action of NAMARCO for the collection of the payment of the
merchandise delivered to, but not yet paid by, the FEDERATION, is
already barred as a consequence of the failure of NAMARCO to set it up
as a counterclaim in the previous case, (Civil Case No. 42684).
HELD
- A counterclaim has been held to be compulsory if there is a logical
relationship between it and the main claim.
- But even assuming for the nonce that NAMARCO's present claim is
logically related to the claim of the FEDERATION in the previous case,
NAMARCO's claim having accrued or matured after the service of its
answer in the earlier case is in the nature of an after-acquired
counterclaim which under the rules is not barred even if it is not set up in
the previous case as a counterclaim. An after-acquired counterclaim, is
one of the recognized exceptions to the general rule that a counterclaim is
compulsory and must be asserted if it arises out of the same transaction
as the opposing party's claim.
- The party need not assert a counterclaim that has not matured at the
time he serves his pleading. This is derived from the language in the rule
limiting its application to claims the pleader has 'at the time of serving the
pleading.' A counterclaim acquired by defendant after he has answered
will not be considered compulsory, even if it arises out of the same
transaction as does plaintiff's claim. Similarly, a counterclaim acquired by
plaintiff after he has replied to a counterclaim by defendant is not
compulsory under Rule 13(a). However, if a party should acquire a
matured counterclaim after he has pleaded, Rule 13(e) provides that he
may obtain the court's permission to include it in a supplemental pleading
under Rule 15(d)."
- A counterclaim may be asserted under Rule 13(e) only by leave of court,
which usually will be granted in order to enable the parties to litigate all the
claims that they have against each other at one time thereby avoiding
multiple actions. However, Rule 13,(e) is permissive in character. An afteracquired counterclaim, even if it arises out of the transaction or
occurrence that is the subject matter of the opposing party's claim, need
not be pleaded supplementally; the after-acquired claim is not considered
a compulsory counterclaim under Rule 13(a) and a failure to interpose it
will not bar its assertion a later suit.
- The counterclaim must be existing at the time of filling the answer,
though not at the commencement of the action for under Section 3 of the
former Rule 10, the counterclaim or cross-claim which a party may aver in
his answer must be one which he may have "at the time" against the
posing party. That phrase can only have reference to the time of the
answer. Certainly a premature counterclaim cannot be set up in the
answer. This construction is not only explicit from the language of the
aforecited provisions but also serves to harmonize the aforecited sections
of Rule 10, with section 4 of the same rule which provides that "a
counterclaim . . . which either matured or was acquired by a party after
serving his pleading may, with the permission of the court, be presented
as a counterclaim . . . by supplemental pleading before judgment."
- Thus a party who fails to interpose a counterclaim although arising out of
or is necessarily connected with transaction or occurrence of the plaintiff's
suit but which did not exist or mature at the time said party files his answer
is not thereby barred from interposing such claim in a future litigation.
However such claim may with the court's permission be included in the
same case by way of supplemental pleading before judgment under
Section 4 of former Rule 10 of the Rules (now Sec. 9 Rule 6). And the
same may be allowed unless the case has progressed so far that it may
be inconvenient or confusing to allow the additional claim to be pleaded.
- We therefore rule that NAMARCO's present action, is not barred by its
failure to assert it as a counterclaim the previous case.
BARREDO, dissenting:
- Namarco's present claim arise out of or was necessarily connected with
the transaction or occurrence that was the subject matter of the
Federation's action in Civil Case No 42684 within the contemplation of the
rule on compulsory counterclaims.
- It was the element of time herein involved that somehow induced me at
the beginning to be inclined, albeit reluctantly, to sustain Namarco's
position in this appeal. At the precise time that Namarco filed its answer in
Civil Case No. 42684, it was not yet certain that the Federation would not
pay or that payment of its sight drafts would not be effected by the bank.
In other words, from that point of view, Namarco's cause of action had not
yet matured then. It is also clear, however, that said cause of action
accrued before judgment was rendered by the trial court.
- Under Section 4 of Rule 10 of the old rules, now Section 9 of Rule 6, a
counterclaim which either matured or was acquired by a defendant after
serving his answer may be set up in a supplemental pleading later before
judgment. Since this may be done or not in the case of counterclaims not
arising out of the same transaction or occurrence, the question that arises
is, must it have to be done in the case of counterclaims that do arise from
the same transaction or occurrence, such that if not interposed, they must
be deemed barred?
- I agree that the Court rule for the present that for a counterclaim to be
considered as barred, under the above provisions, the cause of action
thereof must have already accrued at the time the answer is filed by the
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Prof. Victoria A.
33
Avena
Amended
pleadings
and
Supplemental
YOUNG VS SPOUSES SY
GR No. 157745
AUSTRIA- MARTINEZ, September 26, 2006
NATURE
Consolidated petitions for review on Certiorari
FACTS
- Petitioner filed a complaint for nullification of Second Supplemental
Extra-judicial settlement, mortgage, foreclosure sale, and tax declaration
against respondents on May 20, 2000. The complained alleged that the
questioned partition which was executed by her mother was
unenforceable since at the time of the execution the petitioner was only 15
years old and that no court approval was secured. Her mother obtained a
loan from the spouses respondents and used the property as security
(mortgage). Due to non-payment the property was foreclosed and sold to
respondents as highest bidders. The deed of sale has been filed with the
Register of Deed and the respondents obtained n their name a tax
declaration over the property.
- Petitioner subsequently filed with the same RTC a Motion to Admit
Supplemental Complaint to invoke her right to exercise legal redemption
over the property. This supplemental motion was denied by the RTC on
ISSUE/S
1. WON the denial of the Motion to admit supplemental Complaint is valid
2. WON the dismissal of the petition for certiorari with regard the original
action is proper
HELD
1. No. As its very name denotes, a supplemental pleading only serves to
bolster or add something to the primary pleading. A supplement exists
side by side with the original. It does not replace that which it supplement.
Moreover, a supplemental pleading assumes that the original pleading is
to stand and that the issues jpined with the original pleading remained an
issue to be tried in the action. It is but a continuation of the complaint. Its
usual office is to set up new facts which justify, enlarge or change the kind
of relief with respect to the same subject matter as the controversy
referred to in the original complaint. In this case, the consolidation of the
title over the property in the name of the respondent, Manuel Sy, and the
issue as to whether it precluded petitioner as alleged co-owner from
exercising the right of legal redemption, are new matters that occurred
after the filing of the original complaint. The relief prayd for in the
Supplemental complaint, which is the exercise of the right of legal
redemption accorded to co-owners of property, is germane to and
intertwined with the cause of action in the Complaint for the nullification.
The right of legal redemption as co-owner is conferred by law and is
merely a natural consequence of co-ownership. Hence petitioners cause
of action for legal redemption as embodied in the supplemental complaint
stems directly from and is an extension of her rights as co-owner of the
property subject of the complaint. Also as petitioner correctly pointed out,
even if the trial court decides in her favor, the redemption period would
have lapsed already and would not form part of the decision since it is not
prayed for, much less alleged in the original complaint. In such a case, the
respondents could oppose the exercise since it would not have been
included in the decision over the original complaint.
2. Yes. The petitioner is guilty of forum shopping. Forum shopping
consists of filling multiple suits involving the same parties for the same
cause of action, either simultaneously or successively, the the purpose of
obtaining a favorably judgment. There is forum shopping where there
exist: (a) identity of parties, or at least such parties as represent the same
interests in both actions; (b) identity of rights asserted and relief prayed
for, the relief being founded on the same facts; (c) the identity of the two
preceding particulars is such that any judgment rendered in the pending
case, regardless of which party is successful would amount to res
judicata. The decision of the RTC is dismissing the case is a final order
and the proper remedy against such final order is appeal and not
certiorari. As a general rule, a writ of certiorari sill not issue where the
remedy of appeal is available to the aggrieved party. The remedies of
appeal in the ordinary course of law and that of certiorari under Rule 65
are mutually exclusive and not alternative or cumulative. hence the
special civil action of certiorari under Rule 65 cannot be a substitute for an
appeal where the latter remedy is available. This is a firm judicial policy.
Disposition
Petition for the non-suit is denied. Petition for the admission of the
supplemental order is granted. The trial court is directed to admit said
complaint.
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favor of the Surety to indemnify it for damage, loss, expenses etc and that
in the event judgment is rendered against it, the third party defendants be
ordered to reimburse
- September 7, 1963 > the third-party defendants answer: defense that the
case is premature as the main case has not yet been terminated.
- December 2, 1963 > upon verbal motion of the third party defendants,
the trial court dismissed the third-party complaint for lack of jurisdiction
that the third-party complaint was filed after the passage of RA 3828
conferring original jurisdiction on the Municipal Court in civil cases
involving not more than P10,000.00, and that the third-party complaint
refers to a claim of only P6,000.00
- December 3, 1963 > TC ordered surety to pay the Republic P5,000, with
interest
- CA: Surety interposed its appeal from the order dismissing its third-party
complaint and from the decision ordering it to pay the Republic the
amount of P5,000, contending that the trial court erred in (1) not declaring
itself without jurisdiction over the subject-matter of the action, and (2)
dismissing the third-party complaint. But it certified the case to SC
pursuant to Sec 2 Article VIII of the Constitution and Sec 17(3) of RA 296
where jurisdiction of TC is in issue
Prof. Victoria A.
34
Avena
ISSUES
1. WON the trial court had jurisdiction over the subject-matter of the main
action
2. WON the trial court had jurisdiction over the third-party complaint
HELD
1. YES
- Even though the total amount involved is only P6,000 (P5,000 under the
bond and P1,000 as attorney's fees) and a court of first instance is vested
with jurisdiction only over cases in which the demand, exclusive of
interest, or the value of the property in controversy, exceeds P10,000,
pursuant to section 44 of Republic Act 296, as amended by Republic Act
3828 which took effect on June 22, 1963, the present action having been
filed on June 20, 1963 (two days before the effectivity of Republic Act
3828 which broadened the jurisdiction of municipal and city courts to
include cases in which the demand, exclusive of interest, or the value of
the property in controversy, does not exceed P10,000) it is cannot be
argued that the court's jurisdiction over the case was lost on June 22,
1963, when Republic Act 3828 took effect, and therefore the case should
have been remanded to the municipal court.
- It is not disputed that the trial court acquired jurisdiction over the subjectmatter on June 20, 1963 when the complaint was filed with it. It is of no
moment that summons was served and that the case was heard and
decided after the effectivity of Republic Act 3828, because the rule is
firmly entrenched in our law that jurisdiction once acquired continues until
the case is finally terminated
2. YES
- It is true that the third-party complaint was filed after the effectivity date
of RA3828. It is likewise true that the demand therein made does not
exceed P10,000, and, therefore, is not within the jurisdiction of the Court
of First Instance if it were an independent action. But the third-party
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3rd-party defendant may assert any defenses which the 3rd-party plaintiff
has or may have to the plaintiffs claim.
- 3rd-party complaint does not have to show with certainty that there will be
recovery against the 3rd-party defendant; sufficient that pleadings show
possibility of recovery. In determining the sufficiency of the 3rd-party
complaint, the allegations in the original complaint and the 3rd-party
complaint must be examined. A 3rd-party complaint must allege facts
which prima facie show that the defendant is entitled to contribution,
indemnity, subrogation or other relief from the 3rd-party defendant.
- In this case, the claims of Monark against Asian arose out of the
contracts of lease and sale; such transactions are different and separate
from those between Becthel and Asian where the equipment leased from
Monark was used by the petitioner. There is no showing in the proposed
3rd-party complaint that Becthel knew or approved the use of the leased
equipment by Asian for the said project
- fact that Asian used the equipment it leased from Monark in connection
with its project with Becthel does not provide a substantive basis for the
filing of a 3rd-party complaint against the latter. There is no causal
connection between the claim of Monark, and the failure of Becthel to pay
the balance of its account to Asian after the completion of the project.
Prof. Victoria A.
35
Avena
2. YES
Ratio Section 1, Rule 34: Judgment on the pleadings. Where an
answer fails to tender an issue, or, otherwise, admits the material
allegations of the adverse partys pleading, the court may, on motion of
that party, direct judgment on such pleading. However, in actions for
declaration of nullity or annulment of marriage or for legal separation, the
material facts alleged in the complaint shall always be proved.
Reasoning The denial of the petitioners motion with leave to file a thirdparty complaint against Becthel is without prejudice to its right to file a
separate complaint against the latter.
- Considering that the petitioner admitted its liability for the principal claim
of the respondent in its Answer with Third-Party Complaint, the trial court
did not err in rendering judgment on the pleadings against it.
Disposition Petition is denied.
COMPULSORY COUNTERCLAIM/CROSSCLAIM
CALO appellant, vs.AJAX INTERNATIONAL, INC,
defendant-appellee
22 SCRA 996
BENGZON, March 13, 1968
NATURE
Petition for certiorari, prohibition and mandamus on decision of CFI of
Agusan dismissing the complaint of Calo
FACTS
ISSUE
WON plaintiff's claim is a compulsory counter-claim that should be filed in
the earlier case
HELD
No. Plaintiff's claim is not a compulsory counterclaim in Civil Case No. IV93062 for the simple reason that the amount thereof exceeds the
jurisdiction of the municipal court.
Reasoning The rule that a compulsory counterclaim not set up is barred,
when applied to the municipal court, presupposes that the amount
involved is within the said court's jurisdiction. Otherwise, as this Court had
already noted in Yu Lay v. Galmes we would come to the absurd situation
where a claim must be filed with the municipal court which it is prohibited
from taking cognizance of, being beyond its jurisdiction. Besides, the
reason underlying the rule, which is to settle all related controversies in
one sitting only, does not obtain. For, even if the counterclaim in excess of
the amount cognizable by the inferior court is set up, the defendant cannot
obtain positive relief. The Rules allow this only for the defendant to
prevent plaintiff from recovering from him. This means that should the
court find both plaintiff's complaint and defendant's counterclaim (for an
amount exceeding said court's jurisdiction) meritorious, it will simply
dismiss the complaint on the ground that defendant has a bigger credit.
Since defendant still has to institute a separate action for the remaining
balance of his counterclaim, the previous litigation did not really settle all
related controversies.
Disposition Plaintiff Calo's claim of P12,000.00 not being a compulsory
counterclaim in Civil Case No. VI-93062, it need not be filed there. The
pendency then of said civil case could not be pleaded in abatement of
Civil Case No. 860. Consequently, the lower court erred in dismissing
plaintiff's complaint.
GOJO V GOYALA
Page 26
NATURE
Appeal from a decision of the CFI of Sorsogon
FACTS
-allegedly a pacto de retro sale (the other party alleged it was a
mortgage), Gojo the buyer alleged that the period for redemption has
already lapsed so he filed a petition for consolidation of ownership.
-Goyalas, the buyers who were alleging that they had obtained a cash
loan from Gojo and the land allegedly sold to Gojo was only a security to
the loan, and that they tried to pay their debt to Gojo but Gojo refused.
Goyalas filed a counterclaim for Gojo to receive the amount due, for the
document to be declared a mortgage and not a pacto de retro sale, for
P1800 per annum for the fruits of said property and that, if ever the
document be deemed a pacto de retro sale, for Gojo to be ordered to
execute a deed of resale in favor of the Goyalas.
-Goyalas spouse died, TC ordered Gojo to amend the Complaint to
substitute the spouse with one of her successors in interest as party.
Notwithstanding the lapse of 43 days after receipt of copy of TC order,
Gojo allegedly failed to submit the amended complaint so Goyala filed a
motion to dismiss the petition. TC dismissed complaint, Gojo was also
declared in default in re Goyalas counterclaim. TC ruled in favor of
Goyala.
-Appellant appealed to the CA, which upon finding that the said appeal
involves purely questions of law, certified the same to the SC.
ON COMPULSORY COUNTERCLAIM
The appellant contends that there is no occasion for the TC to declare him
in default in respect of appellees counterclaim as said counterclaim falls
within the category of compulsory counterclaim which does not call for an
independent answer as the complaint already denies its material
allegations. It is now settled that a plaintiff who fails or chooses not to
answer a compulsory counterclaim may not be declared in default,
principally because the issues raised in the counterclaim are deemed
automatically joined by the allegations of the complaint.
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Prof. Victoria A.
36
Avena
-While it is true that under Sec. 3 of Rule 17, a complaint may be
dismissed for failure to prosecute if the plaintiff fails to comply with an
order of the court, said provision cannot apply when the order ignored is a
void one, as in this case. (As in Sec 20 of Rule 3, the death of the
defendant in a contractual money claim does dismiss such action for
recovery, but will be allowed to continue until final judgment is entered.
Favorable judgment obtained by the plaintiff shall be enforced in the
manner provided in these Rules for prosecuting claims against the estate
of a deceased person. In Barrameda vs Barbara, the SC held that an
order to amend the complaint, before the proper substitution of parties as
directed by Sec. 17, Rule 3 (Sec. 16, new law), is void and imposes upon
the plaintiff no duty to comply therewith to the end that an order dismissing
the said complaint, for such non-compliance, would similarly be void. It
was further held in Ferriera vs Gonzales that the continuance of a
proceeding during the pendency of which a party thereto dies, without
such party having been validly substituted in accordance with the rules,
amounts to lack of jurisdiction.
Disposition WHEREFORE, the decision appealed from is set aside
of jurisdiction.
Petitioners claim
-no counter-claim can be filed against him in his capacity as Solicitor
General since he is only acting as counsel for the Republic. He cites the
case of Borja v. Borja,8
- since he is simply the lawyer in the case, exercising his duty under the
law to assist the Government in the filing and prosecution of all cases
pursuant to Section 1, Executive Order No. 14, he cannot be sued in a
counterclaim in the same case.
ISSUES
1.WON Chavez (SolGEn)is immune from suit
2.WON it is proper to implead Chavez (as SolGen) petitioner as additional
party defendant in the counterclaim filed by respondent Enrile
HELD
1.No.
The general rule is that public officials can be held personally accountable
for acts claimed to have been performed in connection with official duties
where they have acted ultra vires or where there is a showing of bad faith.
Moreover, the petitioner's argument that the immunity proviso under
Section 4(a) of Executive Order No. 1 also extends to him is not welltaken. A mere invocation of the immunity clause does not ipso facto result
in the charges being automatically dropped.
Immunity from suit cannot institutionalize irresponsibility and nonaccountability nor grant a privileged status not claimed by any other
official of the Republic. (id., at page 586)
Where the petitioner exceeds his authority as Solicitor General acts in bad
faith, or, as contended by the private respondent, "maliciously conspir(es)
with the PCGG commissioners in persecuting respondent Enrile by filing
against him an evidently baseless suit in derogation of the latter's
constitutional rights and liberties" (Rollo, p. 417), there can be no question
that a complaint for damages may be filed against him. High position in
government does not confer a license to persecute or recklessly injure
another. The actions governed by Articles 19, 20, 21, and 32 of the Civil
Code on Human Relations may be taken against public officers or private
citizens alike.
2. No. Senator Enrile has to file a separate and distinct civil action for
damages against the Solicitor General.
-The charges pressed by respondent Enrile for damages under Article 32
of the Civil Code arising from the filing of an alleged harassment suit with
8
The appearance of a lawyer as counsel for a party and his participation in a case as such counsel does not make
him a party to the action. The fact that he represents the interests of his client or that he acts in their behalf will not hold
him liable for or make him entitled to any award that the Court may adjudicate to the parties, other than his
professional fees. The principle that a counterclaim cannot be filed against persons who are acting in representation of
another ? such as trustees ? in their individual capacities (Chambers v. Cameron, 2 Fed. Rules Service, p. 155; 29 F.
Supp. 742) could be applied with more force and effect in the case of a counsel whose participation in the action is
merely confined to the preparation of the defense of his client. Appellant, however, asserted that he filed the
counterclaim against said lawyer not in his individual capacity but as counsel for the heirs of Quintin de Borja. But as
we have already stated that the existence of a lawyer-client relationship does not make the former a party to the action,
even this allegation of appellant will not alter the result We have arrived at (at pp. 924-925)
A2010
Prof. Victoria A.
37
Avena
portion of the land to Siapno Appliances at P600.00 a month without the
knowledge and consent of Don Juan Cojuangco. This latter act apparently
destroyed her congenial relations with the landowner because soon
thereafter, Don Juan Cojuangco, through his attorney in fact, demanded
that she leave the property. Despite his repeated written demands for her
to surrender possession of the property, Villegas refused, prompting
Cojuangco to institute ejectment proceedings against her before the
Municipal Trial Court (MTC) of Malolos, Bulacan, Branch I on August 23,
1978.
subject of the instant petition for certiorari on the ground that they have
been issued with grave abuse of discretion amounting to lack of
jurisdiction.
HELD
1. NO.
Ratio. As early as 1922 in the case of Cabigao v. Del Rosario, this Court
laid down the doctrine that "no court has power to interfere by injunction
with the judgments or decrees of a court of concurrent or coordinate
jurisdiction having power to grant the relief sought by injunction."
Reasoning. The various branches of the court of first instance of a
province or city, having as they have the same or equal authority and
exercising as they do concurrent and coordinate jurisdiction, should not,
cannot and are not permitted to interfere with their respective cases, much
less with their orders or judgments. A contrary rule would obviously lead to
confusion and seriously hamper the administration of justice.
In its decision dated June 30, 1983, the inferior court dismissed the action
for ejectment for lack of jurisdiction. It cited the unassailable fact that
Villegas and her predecessors-in-interest had been in actual possession
of the subject land for no less than sixty years and that in addition,
Villegas asserted an adverse claim of ownership, thus transforming the
suit into an "accion publiciana" which is properly cognizable by courts of
first instance (now regional trial courts).
On appeal to the then Court of First Instance (CFI) of Malolos, Branch XV,
the inferior court was reversed insofar as it had erroneously denied
jurisdiction over the ejectment case. The trial court then ordered Villegas
to vacate the premises and to surrender possession thereof to herein
petitioner Cojuangco.
The case was elevated to the appellate court and to the Supreme Court
and in both instances, herein petitioner Cojuangco's right of possession
over the land was upheld. After entry of judgment was made on November
20, 1985, herein petitioner went to the Regional Trial Court of Malolos,
Branch XV, where she filed a motion for execution of the judgment, which
the court granted on June 30, 1986. On July 29, 1986, a writ of demolition
was issued against Villegas, who did not oppose the ordered demolition
but instead asked the lower court to give her more time (forty days from
August 7, 1986) to effect the transfer of her personal properties and to
remove the improvements on the subject lot to which motion the court
acceded.
On September 16, 1986, before the lapse of the grace period, Villegas
filed a separate civil action docketed as Civil Case No. 9094-M against
petitioner Cojuangco and the provincial sheriff "for specific performance
with urgent prayer for issuance of a temporary restraining order and
preliminary injunction." This case, instead of being referred to Branch XV
which had earlier issued the writ of demolition, was raffled to another
Malolos branch of the Bulacan Trial Court, specifically Branch XVII which
issued on the same day, September 16, 1986, a temporary restraining
order enjoining Cojuangco and particularly the sheriff "from enforcing or
implementing the Order of Demolition issued in Civil Case No. 7042M . . ." This was followed by another order dated October 6, 1986
granting a writ of preliminary injunction. The twin orders are now the
ISSUES
1. Whether or not the respondent court validly issued an injunction
2. Whether or not Villegas can successfully raise an independent action to
assert that she and her predecessors are builders in good faith and that
they are entitled to recover the value of improvements on the lot.
2. NO
Ratio. Rule 9, Section 4 of the Revised Rules of Court on compulsory
counterclaim provides the answer. It states:
"A counterclaim or cross-claim not set up shall be barred if it arises out of
or is necessarily connected with, the transaction or occurrence that is the
subject-matter of the opposing party's or co-party's claim and does not
require for its adjudication the presence of third parties of whom the court
cannot acquire jurisdiction.
Reasoning. Villegas' claim to recover compensation for improvements
made on the land is essentially in the nature of a counterclaim since it is
interwoven with the fact of possession. Said claim for compensation
should have been presented as a counterclaim in the ejectment suit. It is
deemed barred if not raised on time and the party in error is precluded
from setting it up in a subsequent litigation.
-The rule on compulsory counter-claim is designed to enable the
disposition of the entire conflict at one time and in one action. The
philosophy of the rule is to DISCOURAGE MULTIPLICITY OF SUITS.
-According to Villegas, the reason why the counterclaim for
indemnification was not made in the original action was because it
became a "ripe issue" only after the ejectment proceedings. Villegas
contended that the estoppel of judgment could only extend to those facts
and conditions existing at the time the judgment was rendered and not to
those which supervened before the second suit.
-The argument is untenable. In her pleadings, Villegas repeatedly
stressed that the residential house which her parents had constructed was
already there on the questioned lot for as long as she could remember,
that she herself has lived there all her life and that in the honest belief that
the land had been "donated" to her parents by her "Aunt Tecla", she made
various improvements and renovation thereon. Obviously, such
CARPENA VS MANALO
GR No. 74262
A2010
As appellees had already vacated Lot 74-B, the lower court, after trial on
the merits, rendered judgment declaring appellant the owners of the
house in question and sentencing appellees to pay appellants the sum of
P1,000.00 representing the fair market value thereof. Appellants' claim for
damages for the use and occupancy of the premises was, however,
dismissed for not having been set up in Civil Case No. 9194, the same
being compulsory counterclaim. The present is their appeal from this
portion of the decision of the lower court
Prof. Victoria A.
38
Avena
NATURE
Action to recover possession
FACTS
Lot 74 of the Calamba Cadastre was co-owned Beatriz Manalo and her
common-law husband, Luciano Manalo. On November 5, 1947 Beatriz
sold her one-half interest therein to the spouses Demetrio Carpena and
Salud Catindig for the sum of P5,000.00. To keep the transaction from
Luciano, the sale was made in the neighboring town of Sta. Rosa,
Laguna, and the parties agreed that Beatriz would remain in possession
of the property but with the obligation of paying the land taxes due
thereon. On May 22, 1948 Beatriz and Luciano were married, but she died
three months thereafter.
On August 30, 1948 the deed of the sale was registered and, as a result,
TCT No. 16833 was cancelled and TCT No. 2004 was issued in the name
of the Carpena spouses for the portion purchased by them, which was
identified as Lot No. 74-B of subdivision plan Psd-23230. Upon the death
of their vendor, the Carpenas notified Luciano of the sale and besides
demanded of him the possession of lot 74-B, but the latter, instead of
acquiescing thereto, filed an action against them to annul the sale made in
their favor by Beatriz and to have himself declared owner of the property
subject matter thereof (Civil Case No. 9194). Defendant's answer in said
case alleged, as defense, that the sale in their favor was valid and that by
virtue of the same they became owners of the property subject matter
thereof. Consequently, they prayed for the dismissal of the case and for
damages. The case was dismissed by the lower court after a trial on the
merits and on appeal, the Court of Appeals affirmed the dismissal.
It appears that in 1945 a barong-barong was erected on Lot 74-B by a
tenant occupying the same. Two years thereafter the building was sold to
Beatriz Manalo for P200.00, and thereafter said improvement, with an
assessed value of P150.00, was declared in her name for taxation
purposes. After her death, Luciano Manalo and their children continued to
occupy said house, making considerable improvements thereon in the
years 1952 and 1953, but in December 1954 Luciano Manalo sold it to
Pelagia Cailles Vda. de Unson and Beronica Capareda who began
occupying the same on April 2, 1955.
The present action was commenced on April 11, 1955 in the Court of First
Instance of Laguna by the Carpena spouses against Luciano Manalo,
Pelagia Cailles Vda. de Unson and Beronica Capareda to recover the
possession of Lot 74-B and the house erected thereon as well as
reasonable rental for its use and occupancy from August 1, 1948.
Appellees herein alleged in their answer that the sale executed by Beatriz
Manalo in favor of appellants covered only Lot 74-B and not the house
erected thereon.
While the case was pending in the lower court, or more specifically on
April 17, 1955, appellees, without the consent of appellants, moved the
house in question to the adjoining lot, which compelled the latter to file a
supplemental complaint to recover from the former the sum of P2,500.00
representing the value of the house, plus attorney's fees.
ISSUE
WON the action filed by Luciano Manalo is a compulsory counterclaim
HELD
Yes. As stated above, the purpose of the action filed by Luciano Manalo
(Civil Case No. 9194 of the Court of First Instance of Laguna) was to
annul the sale made by his wife, Beatriz Manalo, in favor of the Carpena
spouses and to recover ownership of the property subject matter thereof.
The rents which appellants now seek to collect from appellees were for
the occupancy of said property and of the house constructed thereon. Had
the sale been annulled, it would have meant that the Carpenas, appellants
herein, had no right to collect rents from the occupants of the lot and of
the house aforesaid, while if the court sustained the validity of the sale,
they would have had such right. It is thus obvious that the claim which
they seek to enforce now as, to say the least, a matter necessarily
connected with the transaction or occurrence subject matter of the
complaint filed against them in Civil Case No. 9194. It follows that the
same constituted a compulsory counterclaim which they should have
pleaded in their answer filed in the aforesaid case.
In Berses vs. Villanueva, 25 Phil. 473, it was held that in an action for the
recovery of a parcel of land, the defendant must set up a counterclaim for
the value of improvements made or introduced by him on the property,
otherwise his claim would be barred. That this ruling applies to the present
case can not be disputed because the only difference between both cases
is that in the one before us the counterclaim is for rents for the occupancy
of the land sought to be recovered and of the house constructed thereon,
instead of being ? as in the Berses case ? for the recovery of the value of
improvements made on the property
Appellants, however, argue that even assuming that their claim constituted
a mandatory counterclaim in relation to Civil Case No. 9194, still they
could not have pleaded it as such in said case because it was not within
the jurisdiction of the Court of First Instance of Laguna where the case
was pending. In this connection they contend that their counterclaim
against Luciano Manalo and his co-plaintiffs would have been for unlawful
detainer and the collection of one month rent only, because when the
action was commenced Manalo had been in possession of the lot and
house involved therein only for one month. This is not entirely correct. The
record on appeal filed by Manalo in the aforesaid ease shows that the
defendants (appellants herein) filed an answer in which they alleged that
they were "the true and lawful owners of the parcel of land" subject matter
of the action by virtue of the deed of sale executed in their favor by Beatriz
Manalo, upon the registration of which a transfer certificate of title was
issued in their name. Their answer also interposed a counterclaim which
they incorporated all the allegations made in their answer and further
alleged that the plaintiffs had filed the action against them maliciously,
thus causing them damages in the sum of P2,000.00. Said answer prayed
not only for the dismissal of the complaint but also for judgment declaring
said defendants as true and lawful owners of the property in question"
(Exhibit C, pp. 18-23). It is obvious therefore that, for all legal purposes,
appellants had, by way of counterclaim, filed an accion reivindicatoria
which, of course, necessarily included the question of possession. This
notwithstanding, they failed to claim rents or compensation for the use
and occupancy of the lot and house subject matter of the complaint filed
against them. The right to collect these rents or reasonable compensation
being merely incidental to the counterclaim, it seems clear that the fact
that the amount thereof was less than the jurisdictional amount for the
Court of First Instance of Laguna did not deprive said court of authority to
take cognizance of the same.
Lastly, appellants contend that there was absolutely no mutuality of claims
because the plaintiffs in Civil Case No. 9194 were Luciano Manalo and
the heirs of his deceased wife, whereas the claim for rents in the present
case is directed, jointly and severally, against Luciano Manalo, Pelagia
Cailles Vda. de Unson and Beronica Capareda. This is likewise untenable
because a party may not evade the effect of the doctrine of res judicata by
simply including additional parties, in the subsequent litigation or by not
including as parties in the latter persons who were parties in the previous
suit
Disposition. Decision affirmed
CABAERO VS CANTOS
G.R. No. 102942
PANGANIBAN; April 18, 1997
NATURE
Petition filed under Rule 65 assailing the Orders of respondent Judge for
being contrary to law and for having been issued in excess of his
jurisdiction and with grave abuse of discretion tantamount to lack of
jurisdiction.
The Order of July 1, 1991, reads:
"THE Answer with Counterclaim filed by the accused through counsel,
dated February 12, 1991, as well as the Opposition thereto; the
Memorandum filed by the Private Prosecutor, in Support of Motion to
Expunge from the Records And/Or to Dismiss Answer with Counterclaim;
the Supplement; and Comment on Supplement, are all ordered expunged
from the Records, considering that this is a criminal case wherein the civil
liability of the acused (sic) is impliedly instituted therein."
Petitioners pleaded for reconsideration of said Order but respondent
judge, in the Order of August 21, 1991, denied their motion, thus:
"ACTING on the Motion for Reconsideration dated July 17, 1991, of the
accused through counsel, this Court finds no merit therein, such that said
motion is hereby denied."
FACTS
A2010
- This petition emanated from a criminal case in the RTC of Manila. Said
case commenced on October 18, 1990, with the filing of an Information
against petitioners charging them with estafa for allegedly defrauding
private respondent Epifanio Ceralde of the sum of P1,550,000.00. The
accusatory portion of the Information reads as follows:
"... the said accused induced and succeeded in inducing the said
EPIFANIO CERALDE to advance the total amount of P1,550,000.00 to be
paid to M.C. Castro Construction, Co. representing the purchase price of 6
parcels of land located in Pangasinan which the Aqualand Ventures &
Management Corporation, a joint business venture organized by accused
AMADO F. CABAERO and the said EPIFANIO CERALDE, purchased
from the said company, with the understanding that the said amount would
be returned to the said EPIFANIO CERALDE as soon as the loan for
P1,500,000.00 applied for by the said Aqualand Ventures & Management
Corporation with Solid Bank, of which said accused AMADO F. CABAERO
is the Senior Vice-President, is released, but both accused, once the said
loan had been approved by the bank, in furtherance of their conspiracy
and falsely pretending that accused CARMEN C. PEREZ had been
authorized by the said Aqualand Ventures & Management Corporation to
receive the check for P1,500,000.00 for and in its own behalf, succeeded
in inducing the cashier of said Solid Bank to release the same to accused
CARMEN C. PEREZ, thereby enabling her to encash the aforesaid check,
and instead of turning over the said amount to the said EPIFANIO
CERALDE; accused failed and refused, and still fail and refuse, to do so
despite repeated demands made to that effect, and with intent to defraud,
misappropriated, misapplied and converted the said amount to their own
personal use and benefit...
- petitioners entered a plea of not guilty.
- Atty. Ambrosio Blanco entered his appearance as private prosecutor.
- The Presiding Judge of the RTC of Manila, Hon. Elisa R. Israel, inhibited
herself "out of delicadeza" from further hearing the case "considering that
the complainant is a relative by affinity of a nephew of her husband."
Thereafter, the case was re-raffled to Branch VII presided over by
respondent Judge Alfredo Cantos.
- On April 2, 1991, petitioners filed an Answer with Counterclaim alleging
that the money loaned from Solidbank mentioned in the Information was
duly applied to the purchase of the 6 parcels of land in Pangasinan, and
that the filing of said Information was unjustified and malicious. Petitioners
included the following prayer:
"WHEREFORE, it is respectfully prayed that after trial judgment be
rendered:
1.
Dismissing, or quashing the information, and the civil action
impliedly instituted in the criminal action;
2.
Ordering the complaining witness Ceralde to pay to the accused the
following amounts:
(a) P1,500,000.00 as moral damages;
(b) P500,000.00 as exemplary damages;
(c) P100,000.00 as attorney's fees; and
(d) P20,000.00, as litigation expenses.
Accused pray for such other reliefs, legal and equitable in the premises."
- During the initial hearing on April 15, 1991, the prosecution verbally
moved that the answer with counterclaim be expunged from the records
Prof. Victoria A.
39
Avena
ISSUE
WON the respondent judge committed grave abuse of discretion,
amounting to lack or excess of jurisdiction in ordering that the answer with
counterclaim of the petitioners in the criminal case, together with all
pleadings filed in relation thereto, be expunged from the records. (WON
the accused-petitioners who were charged with estafa may file an answer
with counterclaim for moral and exemplary damages plus attorney's fees
and litigation expenses against the private complainant in the same
criminal action.)
Preliminary Matters
Litis Pendentia as a Defense
- Private respondent belatedly interposes litis pendentia to defeat the
petition alleges that the present petition is barred by the cross-claim of the
petitioners against Aqualand Ventures and Management Corporation, of
which petitioners are stockholders and officers, in Civil Case No. 90-
A2010
8) An accused can file his answer with counterclaim only after the initial
hearing, because the private complainant may still reserve his civil action
at any time before the prosecution commences to present evidence. On
the other hand, an answer in an ordinary civil action should be filed before
the start of hearing, because hearing commences only after the issues
have been joined, i.e., after the responsive pleadings have been filed.
9) Confusion in the application of the rules on civil procedure will certainly
encourage litigants to challenge before appellate courts interlocutory
incidents of the impliedly instituted civil action.
10) Some members of the Court believe that a cause of action for
malicious prosecution may be premature because there is as yet no
finding of such wrongful prosecution. This fact is precisely what the trial
court still has to determine.
--By the foregoing discussion, we do not imply any fault in Javier.
The real problem lies in the absence of clear-cut rules governing the
prosecution of impliedly instituted civil actions and the necessary
consequences and implications thereof. For this reason, the counterclaim of the accused cannot be tried together with the criminal case
because, as already discussed, it will unnecessarily complicate and
confuse the criminal proceedings. Thus, the trial court should
confine itself to the criminal aspect and the possible civil liability of
the accused arising out of the crime. The counter-claim (and crossclaim or third party complaint, if any) should be set aside or refused
cognizance without prejudice to their filing in separate proceedings
at the proper time. At balance, until there are definitive rules of
procedure to govern the institution, prosecution and resolution of
the civil aspect (and the consequences and implications thereof)
impliedly instituted in a criminal case, trial courts should limit their
jurisdiction to the civil liability of the accused arising from the
criminal case.
Disposition WHEREFORE, premises considered, the questioned Orders
are hereby MODIFIED. The counterclaim of the accused is hereby set
aside without prejudice. The Respondent RTC of Manila is DIRECTED to
proceed with the trial of the criminal action and the civil action arising from
the criminal offense that is impliedly instituted therein, with all judicious
dispatch.
Prof. Victoria A.
40
Avena
CHAN V CA (CU)
G.R. 109020
DAVIDE; MARCH 3, 1994
NATURE
Review on certiorari
FACTS
- On Feb.1, 1983, petitioner Felisa Chan and private respondent Grace
Cu, entered into a contract of lease, the terms of which were:
>>Cu will occupy Room 401 and rooftop of Room 442 of a bldg in
Urbiztondo owned by Chan.
>>Term of lease is 1 year at a monthly rental of P2,400.
>>The premises shall be used as a learning center.
A2010
Prof. Victoria A.
41
Avena
between them. Consequently, the CA erred when it held that Chan's
cause of action for ejectment could not be set up in a counterclaim.
- The case of Ching Pue vs. Gonzales is inapplicable because in Ching
Pue the consignation cases were filed with the CFI which did not have
jurisdiction over ejectment cases; necessarily, no counterclaim for
ejectment could have been interposed therein. The ratio of the said case
is that consignation is not proper where the refusal of the creditor to
accept tender of payment is with just cause. In the instant case, the
ejectment was set up as a counterclaim in the MTC which has jurisdiction
over it and Cu joined that issue and the incidents thereto by her answer to
the counterclaim, and the counterclaim to the counterclaim.
- The CA therefore should have confined itself to the principal error raised
in Cu's petition in (the duration of the extended term of the lease fixed in
the decision of the MTC and affirmed by the RTC). As fixed, the term of
the lease was extended to June 30, 1992. That period had expired six
months before the CA promulgated its challenged decision. Considering
that Chan did not file any petition for the review of the RTC decision and
was, therefore, deemed to have agreed to the extension; and considering
further that Cu did not come to us on a petition for review to seek reversal
of the decision therein and should thus be considered to have agreed to
the dismissal of her consignation case, the parties must be deemed
bound by the extended term, which has, nevertheless, already lapsed.
**On Counterclaims
- A counterclaim is any claim for money or other relief which a defending
party may have against an opposing party. It need not diminish or defeat
the recovery sought by the opposing party, but may claim relief exceeding
in amount or different in kind from that sought by the opposing party's
claim. Counterclaims are designed to enable the disposition of a whole
controversy of interested parties conflicling claims, at one time and in one
action, provided all the parties can be brought before the court and the
matter decided without prejudicing the rights of any party. A counterclaim
"is in itself a distinct and independent cause of action, so that when
properly stated as such, the defendant becomes, in respect to the matter
stated by him, an actor, and there are two simultaneous actions pending
between the same parties, wherein each is at the same time both a
plaintiff and a defendant . . . . A counterclaim stands on the same footing
and is to be tested by the same rules, as if it were an independent action.
In short, the defendant is a plaintiff with respect to his counterclaim.
Disposition petition GRANTED. CA decision SET ASIDE.
The Answer
Defenses
GOJO V GOYALA
Page 26
FACTS
ON DEFENSES
Rule 8, allegations deemed admitted
TEC BI & CO v CHARTERED BANK OF INDIA,
AUSTRALIA AND CHINA
41 Phil 596
CARSON; Feb 5, 1916
FACTS:
- on the 7th of November 1912, the plaintiff sold to the "La Urania Cigar
Factory (Ltd.)," a quantity of leaf tobacco.
- on 16th January, 1913, the "La Urania Cigar Factory (Ltd.)," pledged to
the defendant corporation as security for the payment of an indebtedness
of P25,000 the bales of tobacco. The bales of tobacco thus pledged were
stored in the bodega of a third person, Messrs. Sprungli & Co., situated at
No. 42 (now No. 214) of Calle David, Manila.
- on or about the 1st day of February, 1913, the defendant corporation
demanded and obtained from Messrs. Sprungli & Co. the keys to the said
bodega, and discovered that of the 436 bales of tobacco there remained
only those set forth in paragraph 4 of the answer. (I have no idea how
many. Sorry.)
- the defendant bank did not know and had been unable to ascertain
whether "La Urania Cigar Factory (Ltd.)," misrepresented the quantity of
the tobacco in the said warehouse at the time of the execution of said
document of pledge, or whether the difference between the amount
described in the document of pledge and that found on hand on the 1st of
February, 1913, and in the meantime been disposed of by "La Urania
Cigar Factory (Ltd.)," in collusion with Messrs. Sprungli & Co., but that if
such disposition was made it was without the knowledge or consent of the
defendant bank.
- from said 1st day of February, 1913, the defendant corporation had been
in the absolute and exclusive possession of the tobacco, until the 15th of
May, 1913, when same was sold under and by virtue of the document of
pledge by the defendant bank for the sum of P12,722.36 which was
applied on account of said loan, the entire amount of which was then past
due and unpaid, leaving a large balance thereof still due and unpaid.
- on the 22nd day of April, 1913, the plaintiff Tec Bi & Co., filed a complaint
in the Court of First Instance of Manila against "La Urania Cigar Factory
(Ltd.)," claiming the payment of the sum of P11,572.96 as the balance of
the unpaid purchase price of the tobacco
- on the 5th day of May, 1913, Tec Bi & Co. asked for and obtained from
the Court of First Instance an attachment against the said bales of
tobacco, but inasmuch as the bodega was locked and the sheriff was
informed that the keys were in the possession of the bank, he demanded
the delivery thereof from the latter, which demand was refused by the
bank, alleging that it held possession of the tobacco under a pledge.
- the sheriff notified it that the bales of tobacco were attached subject to
the results of the complaint filed by Tec Bi & Co. against "La Urania Cigar
Factory (Ltd.),
- on 8th day of May, 1913, the bank answered the notification of the
sheriff, confirming the fact that it had in its possession the bales of
tobacco specified in the notification, as security for the payment of a loan
and that it intended to sell the same; that the sheriff communicated the
answer of the bank to the attorneys to Tec Bi & Co., who replied insisting
upon the levy of the attachment.
- on the 19th day of May, 1913, the Court of First Instance rendered
judgment in said case against "La Urania Cigar Factory (Ltd.)," in favor of
Tec Bi & Co., for the sum of P11,572.96, with legal interest from April 22,
1913, and costs.
- on the 22d day of May, 1913, the sheriff attempted to execute the
judgment upon the bales of tobacco attached and in the possession of the
defendant corporation, but was unable to do so due to the statement of
the agent of said corporation, that the tobacco had been sold and that the
proceeds of the sale had been applied upon the payment of the amount
due to from "La Urania Cigar Factory (Ltd.),"
- Court of First Instance found that the plaintiff's claim was a preferred
credit under the provisions of paragraph 1 of article 1922 of the Civil
Code; that the pledge executed by "La Urania Cigar Factory (Ltd.)," in
favor of the defendant corporation was not binding upon the plaintiff for
the reason that it was not set forth in a public instrument as required by
article 1865 of the Civil Code in order to be effective against, third person,
and rendered judgment in favor of the plaintiff and against the defendant
for the amount of the former's judgment against "La Urania Cigar Factory
(Ltd.)," with interest and costs.
ISSUE:
WON the court erred in holding that the plaintiff did not waive any defect in
the private instrument of pledge by expressly admitting its genuineness
and the correctness of its date by stipulation, and by failure to object to its
introduction in evidence.
A2010
Prof. Victoria A.
42
Avena
NOTE: the case dealt with a pledgor-pledgee [credit] relationship. The
discussion here is limited to that pertaining to civil provision. Please see
case re issues on credit.
HELD:
A general admission of the truth of the allegations set forth in a pleading is
not an admission of the truth of an impossible conclusion of fact drawn
from other facts set out in the pleading, nor of a wrong conclusion of law
based on the allegations of fact well pleaded, nor of the truth of a general
averment of facts contradicted by more specific averments. Thus, if a
pleader alleges that two pesos were borrowed on one day and two more
borrowed on another making five Pin all, a stipulation of the truth of the
allegations in the pleading does not amount to an admission by the
opposing party that twice two make five. Again if a pleader alleges that
one hundred pesos were loaned without interest for one year and had not
been paid, and that the borrower is indebted to the lender in the sum of
one hundred and ten pesos, that being the amount of the capital together
with interest for the year for which the money was loaned, a stipulation as
to the truth of the allegation set forth in the pleadings is not an admission
of the truth of the conclusion of law as to the interest due by the borrower.
These elementary principles have been quite fully developed in a great
variety of cases arising on demurrers, and sufficiently dispose of the
attempt of counsel to fix the attention of the court upon this single
averment of the answer, apart from the context and to the exclusion of the
specific allegations of fact, the truth of which, as stipulated by the parties,
cannot be questioned.
DISPOSITION: Judgment affirmed
A2010
Prof. Victoria A.
43
Avena
FACTS
- Law loaned P10,000 to Olympic Sawmill without interest. The loan
became due on January 31, 1960 but was not paid on that date. The
debtors asked for an extension of 3 months (April 30, 1960).
- March 17, 1960 Another loan document was drawn up wherein the
obligation was increased by P6,000 (to answer or attorneys fees, legal
interest and other costs). Defendants failed to pay their dues by April and
when a action was instituted against them by Law in September, they
claimed that the additional interest as usurious.
- A writ of attachment was then executed on real and personal properties
of the defendant.
- TC: ordered Olympic Sawmill to pay Liam Law P10,000 plus the P6,000
interest.
ISSUE
WON the decision of the trial court was correct
HELD
YES
Ratio Sec. 9 of the Usury Law envisages a complaint filed against
an entity which has committed usury, for the recovery of the
usurious interest paid. In that case, if the entity sued shall not file
its answer under oath denying the allegation of usury, the
defendant shall be deemed to have admitted the usury. The
provision does not apply to a case, as in the present, where it is
the defendant, not the plaintiff, who is alleging usury.
Reasoning
- Sec. 9 of the Usury Law states: The person or corporation sued shall file
its answer in writing under oath to any complaint brought or filed against
said person or corporation before a competent court to recover the money
or other personal or real property, seeds or agricultural products, charged
or received in violation of the provisions of this Act. The lack of taking an
oath to an answer to a complaint will mean the admission of the facts
contained in the latter.
- For sometime, usury has been legally nonexistent. Interest can now be
charged as tender and borrower may agree upon.4 The Rules of Court in
regards to allegations of usury, procedural in nature, should be considered
repealed with retroactive effect.
Disposition Judgment affirmed
FACTS
- Amalio L. Sarmiento, registered owner of A.L. Sarmiento Construction,
applied for a loan from Philippine Banking Corporation in the sum of
P4,126,000, evidenced by promissory note no. 626-84.
- Pursuant thereto, Sarmiento obligated himself to pay the amount with
interest at the rate of 29% per annum. Additionally, it was stipulated that if
payment was not made upon maturity of the loan, penalty charges of 1%
per month and 25% of the total amount due would be charged against
him.
- Sarmiento signed the aforesaid promissory note together with the
disclosure statement on loan/credit transaction provided by the bank.
- Sarmiento failed to pay the obligation on maturity, prompting PBC to
send him a letter of demand. Despite the demand, however, Sarmiento
still failed to settle his indebtedness.
- PBC filed a complaint for a sum of money against him. In his answer,
Sarmiento denied that he received the proceeds of the loan transaction
and prayed that the case against him be dismissed.
- The trial court rendered its decision finding that plaintiff miserably failed
to prove its case by preponderance of evidence. The case was
dismissed.
- PBC filed a motion for new trial which the trial court subsequently
granted despite the opposition of Sarmiento.
- The trial court rendered a decision finding the evidence adduced by the
bank to be insufficient to substantiate its claim. The trial court reinstated
its earlier dismissal of the case against Sarmiento and denied Philippine
Banking Corporations subsequent motion for reconsideration.
- PBC appealed to the CA
- CA affirmed with modification the trial courts by deleting the trial courts
award of attorneys fees.
- Hence, the instant petition
ISSUE
WON no proof was required of petitioner to establish the contents of the
said documents because such judicial admissions of respondent created
a prima facie case in petitioners favor
HELD
NO.
- It is undisputed that respondent Sarmiento signed the promissory note
and the accompanying disclosure statement on loan/credit transaction.
But said pieces of evidence proved only the existence of such documents.
There was even no question as to that because respondent Sarmiento
himself admitted the due execution thereof.
- The important issue was whether or not respondent Sarmiento actually
received the proceeds of the subject loan so as to make him liable
therefor, a matter which should have been ventilated before the trial court.
- The trial court did in fact make a finding that the documentary evidence
of petitioner failed to prove anything showing that respondent indeed
received the proceeds of the loan. The Court of Appeals affirmed the
conclusions of the trial court and declared:
A pre-existing obligation, it may be conceded, constitutes value and may, of and by itself,
serve as valuable and sufficient consideration for a contract such as the loan sued upon.
As an essential element of a contract, however, the same should have been satisfactorily
proved by the appellant particularly when, as in the instant case, the absence of
consideration was precisely put in issue by the pleadings and was buttressed by both oral
and documentary evidence. Having failed in this material respect, the appellants
withdrawal of the amount supposedly credited to the appellees account was
understandably interpreted by the court a quo as a termination/cancellation of the loan the
latter applied for. Considering further that contracts without consideration do not exist in
contemplation of law and produce no effect whatsoever (Article 1352, Civil Code of the
Philippines), the trial, likewise, correctly dismissed the appellants case.
Defense/objection waived
9
KATON V PALANCA
G.R. No. 151149
PANGANIBAN; September 7, 2004
NATURE
Petition for Review under Rule 45 of the Rules of Court, assailing CA
decision, and resolution denying MFR.
9 For other footnotes in this case:
[14]
The said section provides that [t]hese rules shall apply in all courts, except as otherwise provided by the Supreme
Court.
[35]
[37]
SEC. 2. Parties in interest.- A real party in interest is the party who stands to be benefited or injured by the judgment in the suit,
or the party entitled to the avails of the suit. Unless otherwise authorized by law or these Rules, every action must be prosecuted
or defended in the name of the real party in interest.
A2010
Prof. Victoria A.
44
Avena
FACTS
-August 2, 1963: George Katon filed a request with the District Office of
the Bureau of Forestry in Puerto Princesa, Palawan, for the reclassification (forestagricultural land) of a piece of real property known
as Sombrero Island (~18has).
-BFDO Puerto Princesa ordered the inspection, investigation and survey
of the land, and thereafter for George Katon to apply for a homestead
patent.
-Gabriel Mandocdoc (now retired Land Classification Investigator)
undertook the investigation, inspection and survey of the area in the
presence of George, his brother Rodolfo (deceased) and his cousin,
Manuel Palanca, Jr., (respondent). During said survey, there were no
actual occupants on the island but there were some coconut trees claimed
to have been planted by George and Palanca (alleged overseer of
George) who went to the island from time to time to undertake
development work, like planting of additional coconut trees.
-The application for conversion of the whole Sombrero Island was
favorably endorsed by BFDO Puerto Princesa to its main office in Manila
for appropriate action. The names of Felicisimo Corpuz, Clemente
Magdayao and Jesus Gapilango and Juan Fresnillo were included in the
endorsement as co-applicants of George. Authorities noted that since the
subject land was no longer needed for forest purposes, the same is
therefore certified and released as agricultural land for disposition under
the Public Land Act.
-George Katon says: the whole Sombrero Island had been classified from
forest land to agricultural land and certified available for disposition upon
his request and at his instance.
-However land investigators of the Puerto Princesa District Land Office,
later favorably endorsed the request of respondents Manuel Palanca Jr.
and Lorenzo Agustin, for authority to survey vacant portions of Sombrero
Island consisting of 5hectares each.
-Subsequently, respondents filed their own homestead patent
applications: Lorenzo Agustin (4.3has), Juan Fresnillo (8.5has), and
Jesus Gapilango (??has). Manuel Palanca, Jr. was issued a Homestead
Patent No. and OCT for 6.84 hectares of Sombrero Island.
-Katon filed Complaint for Nullification of Applications for Homestead and
Original Certificate of Title No. G-7089 and for Reconveyance of Title and
prayed for reconveyance of the whole island in his favor, arguing that the
homestead patents and original certificates of title covering certain
portions of Sombrero Island issued in favor of respondents were invalid for
having been obtained through fraud.
Respondents arguments:
-Manuel Palanca asserts that he himself requested for the reclassification
of the island in dispute; that about the time of such request, Fresnillo,
Gapilango and himself already occupied their respective areas and
introduced numerous improvements; that Katon never filed any
homestead application for the island; that Gabriel Mandocdoc never
undertook the inspection and survey of the island; that he is not a mere
overseer of Katon because he was acting for himself in developing his
own area and not as anybodys caretaker.
-Respondents aver that they are all bona fide and lawful possessors of
their respective portions, have declared such for taxation purposes and
have been faithfully paying taxes thereon for twenty years. They contend
that Katon has no legal capacity to sue insofar as the island is concerned
(an action for reconveyance can only be brought by the owner and not a
mere homestead applicant) and that petitioner is guilty of estoppel by
laches for his failure to assert his right over the land for an unreasonable
and unexplained period of time.
-After filing their Answer with Special and/or Affirmative Defenses and
Counterclaim, respondents also filed a Motion to Dismiss on the ground of
the alleged defiance by Katon of the RTCs order to amend his Complaint
(substitution by the legal heirs of the deceased Gapilango). MTD was
granted. Katons MFR was denied.
-Katon filed petition for certiorari before CA. Instead of limiting itself to the
allegation of grave abuse of discretion, CA ruled on the merits & held that
while Katon had caused the reclassification of Sombrero Island from forest
to agricultural land, he never applied for a homestead patent under the
Public Land Act. Hence, he never acquired title to that land. Also, granting
arguendo that Katon had the exclusive right to apply for a patent to the
land in question, he was already barred by laches for having slept on his
right for almost 23 years from the time Palancas title had been issued
-On MR, CA acknowledged that it had erred when it ruled on the merits of
the case. It agreed with Katon that the TC had acted without jurisdiction in
perfunctorily dismissing his Sept10, 1999 MFR, on the erroneous ground
that it was a third and prohibited motion when it was actually only his first
motion. Nonetheless, the complaint was dismissed motu proprio by the CA
with two justices dissenting pursuant to its residual prerogative under
Sec. 1 of Rule 9 of the Rules of Court. CA said that from the allegations of
the complaint, Katon clearly had no standing to seek reconveyance of the
disputed land, because he neither held title to it nor even applied for a
homestead patent. It reiterated that only the State could sue for
cancellation of the title issued upon a homestead patent, and for reversion
of the land to the public domain. It also ruled that prescription had already
barred the action for reconveyance.
ISSUES
1. WON CA was correct in resolving the petition for certiorari based on an
issue not raised in the petition (WON CA was correct in ruling on the
merits)
2. WON CA was correct in invoking its alleged residual prerogative under
Section 1, Rule 9 of the 1997 Rules of Civil Procedure in resolving the
Petition on an issue not raised in the Petition (and eventually dismissing
the case for prescription and lack of jurisdiction)
HELD
Where prescription, lack of jurisdiction or failure to state a cause of action
clearly appear from the complaint filed with the TC, the action may be
dismissed motu proprio by the CA, even if the case has been elevated for
review on different grounds. Verily, the dismissal of such cases
appropriately ends useless litigations.
1. This is not the first time that petitioner has taken issue with the propriety
of the CAs ruling on the merits. He raised it with the CA when he moved
for reconsideration of CAs Dec8, 2000 Decision. The CA even corrected
itself in its Nov20, 2001 Resolution.
-That should have been enough to settle the issue. The CAs Resolution
on this point has rendered petitioners issue moot. There is no need to
discuss it further. Suffice it to say that the appellate court indeed acted
ultra jurisdictio in ruling on the merits of the case when the only issue that
could have been, and was in fact, raised was the alleged grave abuse of
discretion committed by the trial court in denying Katons MFR.
-Settled is the doctrine that the sole office of a writ of certiorari is the
correction of errors of jurisdiction. Such writ does not include a review of
the evidence,[10] more so when no determination of the merits has yet
been made by the trial court, as in this case.
2. NO
-CAs residual prerogatives under Sec1 of Rule9 of the Rules of Court is
different from the residual jurisdiction of TC over cases appealed to CA.
-RESIDUAL PREROGATIVES: Sec 1 of Rule 9 of the Rules of Court:
defenses and objections not pleaded either in a motion to dismiss or in
the answer are deemed waived, except when
(1) lack of jurisdiction over the subject matter,
(2) litis pendentia,
(3) res judicata and
(4) prescription
are evident from the pleadings or the evidence on record. In the four
excepted instances, the court shall motu proprio dismiss the claim or
action.
-RESIDUAL JURISDICTION: Sec 9 of Rule 41 of the Rules of Court10:
The residual jurisdiction of trial courts is available at a stage in which the
court is normally deemed to have lost jurisdiction over the case or the
subject matter involved in the appeal. This stage is reached upon the
perfection of the appeals by the parties or upon the approval of the
records on appeal, but prior to the transmittal of the original records or the
records on appeal. In either instance, the TC still retains its so-called
residual jurisdiction to issue protective orders, approve compromises,
permit appeals of indigent litigants, order execution pending appeal, and
allow the withdrawal of the appeal.
10Rule41.SEC. 9. Perfection of appeal; effect thereof. A partys appeal by notice of appeal is deemed perfected as to him
upon the filing of the notice of appeal in due time.
A partys appeal by record on appeal is deemed perfected as to him with respect to the subject matter thereof upon the approval
of the record on appeal filed in due time.
In appeals by notice of appeal, the court loses jurisdiction over the case upon the perfection of the appeals filed in due time and
the expiration of the time to appeal of the other parties.
In appeals by record on appeal, the court loses jurisdiction only over the subject matter thereof upon the approval of the records
on appeal filed in due time and the expiration of the time to appeal of the other parties.
In either case, prior to the transmittal of the original record or the record on appeal, the court may issue orders for the protection
and preservation of the rights of the parties which do not involve any matter litigated by the appeal, approve compromises, permit
appeals of indigent litigants, order execution pending appeal in accordance with Section 2 of Rule 39, and allow withdrawal of the
appeal.
A2010
Prof. Victoria A.
45
Avena
COMMON PROVISIONS
Re parts of pleading
Layos is the legal owner and possessor of thwo parcels of land having a
total area of 837,695 sq. m. located in Bian, Laguna known as Lots 1 & 2
of Plan Psu-201. Layos claimed that the Southwoods project encroached
upon the aforecited lands and thus his rights of ownership and possession
were violated when FERC brought in men and equipment to begin
development of the said properties.
- February 2, 1993: FERC filed an Opposition to Application for Writ of
Preliminary Injunction and explicitly stated therein that the developer is its
sister company, FEGDI.
- March 29, 1993: Judge Sultan of RTC Bian issued an order denying
the prayer for preliminary injunction in view of Layos inability to
substantiate his right.
- June 25, 1993: Layos along with his wife and other individuals filed
another case for Injunction and Damage with Prayer for Preliminary
Injunction with the RTC of San Pedro, this time against FEGDI. The
complaint is basically identical to that filed in the Bian case, except for
changes in the number of party-plaintiffs and party-defendants and in the
area size of the claimed landholdings.
- FEGDI moved to dismiss the San Pedro case on grounds of litis
pendentia, forum-shopping, lack of cause of action and lack of jurisdiction.
FEGDI argues that a similar complaint was previously filed with the RTC
Bian court. FEGDI also averred that the documents relied upon by the
private respondents are of doubtful veracity and that they failed to pay the
correct filing fees.
- Judge Cabuco-Andres of San Pedro RTC denied FEGDIs motion to
dismiss, as well as the Motion for Reconsideration. FEGDI filed a Petition
for Certiorari and Prohibition with Application for Preliminary Injunction
with the CA. CA ordered an RTO enjoining Cabuco-Andres.
- January 25, 1994: RTC Bian case was dismissed without prejudice on
grounds of forum-shopping.
ISSUES
1.
WON Layos is guilty of forum-shopping.
2.
WON the San Pedro case has cause of action.
HELD
1.
YES
Ratio
Reasoning Private respondents have indeed resorted to forum-shopping
in order to obtain a favorable decision. The pattern is undisputably
revealed by the fact that after Felipe Layos instituted in 1992 a case for
injunction and damages with application for preliminary injunction in the
RTC of Bian, and after his prayer was denied in March 1993, he (and
other individuals) filed an identical complaint for injunction and damages
with preliminary injunction in June 1993, this time with RTC San Pedro. An
examination would show that the San Pedro complains is simply an
improved version of the Bian complaint.
- Respondents content that there is no identity of part-defendants since it
was FERC in the Bian case and FEGDI in the San Pedro case. This is
unmeritorious, because FEGDI voluntarily submitted to the courts
jurisdiction by filing its answer and expressly stating that it is the developer
A2010
Prof. Victoria A.
46
Avena
of Southwoods, and not FERC. The Bian court expressly recognized
FEGDI as the defendant in the said case.
- The willful attempt by private respondent to obtain a preliminary
injunction in another court after it failed to acquire the same from the
original court constitutes grave abuse of the judicial process.
SC-Administrative Circular 04-94:
Revised Circular 29-91 applies to and governs the filing of petitions
in the Supreme Court and the Court of Appeals and is intended to
prevent the multiple filing of the petitions or complaints involving the
same issues in other tribunals.
The following requirements xxx shall be strictly complied with
in the filing of the complaints, petitions, applications or other
initiatory pleadings in all courts and agencies other than the SC xxx.
The complaint and other initiatory pleadings referred to and
subject of this Circular are the original civil complaint, counter-claim,
cross-claim, third (fourth, etc) party complaint, or complaint-inintervention, petition, or application wherein a party asserts his
claim for relief.
2.
NO
Ratio In the determination of WON the complaint states a cause of action,
the annexes attached to the complaint may be considered, they being
parts of the complaint.
Reasoning The San Pedro case also did not state a cause of action. In
determining WON a complaint states a cause of action, only the
allegations in the complaint must be considered. The test if sufficiency of
the facts is WON admitting the facts alleged the court can render a valid
judgment upon the same in accordance with the prayer thereof.
- There is no cause of action because Layos claim on the land in question
is based on a fabricated document. The affidavit of self-adjudication is a
vital part of the complaint that should be considered in the determination
of whether or not a cause of action exists.
- The land Psu-201 is an original survey for J. Reed located in Malate,
Manila, and Si-14769 is a survey number for the plan of a land parcel
situated in Bo. Bessang, Cagayan in the name of Gregorio Blanco
- However the CA and RTC limited itself to the allegations in the complaint
proper of the San Pedro case in concluding that said complaint stated a
cause of action. This is erroneous.
- In the case of Marcopper Mining v Garcia, the RTC had the opportunity
to examine the merits of the complaint, the answer with counterclaim, the
petitioners answer to the counterclaim and its answer to the request for
admission. It was but logical for said court to consider all of these
pleadings in determining WON there was a sufficient cause of action in
the petitioners complaint.
- Regalado: The exception is provided in Sec. 2 Rule 9. It as also been
held that under this ground the trial court can consider all the pleadings
filed, including annexes, motions and the evidence on record.
DISPOSITION
The petition for review on certiorari is granted. Respondents complaint is
dismissed.
DBP v CA
G.R. No. 147217
October 7, 2004
NATURE
petition for review on certiorari assailing the Resolution of the CA
dismissing the petition for certiorari filed by the DBP and Atty. Nilo
Galorport
FACTS
- Bibiana Guerra de Azarcon, herein private respondent, and her late
husband Inocentes Azarcon, obtained a loan from PNB. As collateral, they
mortgaged 2 lots with the bank. But they could not pay their loan.
Asuncion Calceta told Bibiana that she is willing to pay their loan if Bibiana
would mortgage the lots to her. Private respondents agreed. Asuncion
Calceta then made an initial payment of P273,000.00 to the PNB. The
bank extended the redemption period to allow Asuncion to apply with the
DBP a loan of P3.5M to be paid to the PNB. Private respondents executed
a simulated deed of sale of their lots in her favor to enable her to
mortgage the same with the DBP.
- When the proceeds of the loan were released, Asuncion paid the PNB
P900,000.00 representing the unpaid balance of respondents loan.
However, she failed to pay her loan with the DBP, prompting the bank to
foreclose the mortgage covering the 2 lots. After hearing private
respondents application for preliminary injunction, the RTC issued an
Order enjoining the DBP and Atty. Nilo Galorport, the banks deputized
special sheriff, from proceeding with the auction sale of the lots pending
the final determination of the civil case wherein private respondents
prayed for annulment of the contract and the TCTs transferring title over
the lots to Asuncion Calceta.
- DBP and Atty. Galorport filed an MFR but were denied by the RTC.
Hence, they filed with the CA a petition for certiorari alleging that in
granting the injunctive relief in favor of private respondents, the RTC acted
with grave abuse of discretion. The CA dismissed the petition for certiorari
for failure of one of the petitioners, Atty. Nilo Galorport to sign the
certification against forum shopping. The CA denied petitioners MFR,
holding that Atty. Demosthenes Demecillo, Branch Manager of the DBP at
Tagbilaran City, failed to show that he is the banks authorized
representative to file the petition for certiorari.
ISSUE
WON the CA acted with grave abuse of discretion in dismissing the
petition for certiorari
HELD
NO
Ratio
The certification against forum shopping is fatally defective, not having
been duly signed by both petitioners. This procedural flaw warrants the
dismissal of the petition for certiorari. The certification against forum
shopping must be signed by the principal parties.
Reasoning
The petitioners before the CA were the DBP, represented by Atty.
Demosthenes Demecillo, the banks Branch Manager at Tagbilaran City,
and Atty. Nilo Galorport, DBPs deputized special sheriff. The certification
against forum shopping was signed by Atty. Demecillo only. Petitioners
explained in their MFR that in the verification of the petition for certiorari,
Atty. Demecillo stated under oath that he is the DBPs incumbent Branch
Head and its duly authorized officer. They submitted a copy of a resolution
passed by the DBP Board of Governors, authorizing Branch Heads of the
DBP to sign the verification and certification against forum shopping of all
initiatory pleadings of the bank. What petitioners failed to explain,
however, is their failure to attach a certified true copy of the resolution to
their petition. Their omission is fatal to their case. Courts are not expected
to take judicial notice of corporate board resolutions or a corporate
officers authority to represent a corporation. Petitioners failure to submit
proof that Atty. Demecillo has been authorized by the DBP to file the
petition is a "sufficient ground for the dismissal thereof." Atty. Galorport
contends that the signature of Atty. Demecillo, representing the DBP, is
sufficient since he and DBP are being sued jointly, they having a common
interest in the lots under litigation. His contention lacks merit. DBP is being
sued as a mortgagee, while he is impleaded as the banks deputized
special sheriff who conducted the extra-judicial foreclosure of the
mortgage. Their interests are not the same. The certification against forum
shopping should be signed by all the petitioners in a case, and the signing
by only one of them is insufficient.
Disposition
Petition is DENIED
WEE V GALVEZ
436 SCRA 96
QUISUMBING; August 11, 2004
NATURE
Petition for review on certiorari
FACTS
- Petitioner Rosemarie Wee and respondent Rosario D. Galvez are
sisters. Rosemarie lives with husband Manuel in Bataan. Rosario lives in
New York, USA
- They entered into an agreement whereby Rosario would send
Rosemarie US$20,000, half of said amount to be deposited in a savings
account while the balance could be invested in the money market. The
interest to be earned therefrom would be given to Rosario's son, Manolito
Galvez, as his allowance
- In accordance with her agreement with Rosario, Rosemarie gave
Manolito his monthly allowance ranging from P2,000 to P4,000 a month
from 1993 to January 1999. However, sometime in 1995, Rosario asked
for the return of the US$20,000 and for an accounting. Rosemarie
promised to comply with the demand but failed to do so. A written demand
was sent to her. When Rosemarie did not comply, Rosario filed a suit
against her.
A2010
- The Wees moved to dismiss the case based on the following grounds:
(1) the lack of allegation in the complaint that earnest efforts toward a
compromise had been made in accordance with Article 1515 of the Family
Code; (2) failure to state a valid cause of action, the action being
premature in the absence of previous earnest efforts toward a
compromise; and (3) the certification against forum shopping was
defective, having been executed by an attorney-in-fact and not the
plaintiff.
- Rosario amended her complaint to add that Earnest efforts towards
have been made but the same have failed (mali talaga yung sinulat nila).
The trial court accepted the amended complaint and dismissed the Wees
motion to dismiss. Wee moved for an MFR. It was also denied.
- The Wee couple brought the matter to the Court of Appeals via a special
civil action for certiorari, prohibition, and mandamus. It was also denied.
The Court of Appeals held that the complaint, as amended, sufficiently
stated a cause of action. It likewise held that the questioned certification
against forum shopping appended thereto was not so defective as to
warrant the dismissal of the complaint. An MFR was filed but was likewise
denied.
Prof. Victoria A.
47
Avena
ISSUE/S
1. WON the certification of non-forum shopping executed by the
plaintiffs atty-in-fact is defective
2. WON the amended complaint before the RTC states a cause of action
HELD
1. No
Reasoning The Special Power of Attorney executed by her in favor of
Grace Galvez, if subjected to careful scrutiny would clearly show that the
authority given to the latter is not only broad but also all encompassing
that it includes the power and authority to institute both civil and criminal
actions. Corollary with this power is the authority to sign all papers,
documents, and pleadings necessary for the accomplishment of the said
purpose.
The SPA includes:
1. To ask, demand and claim any sum of money that is duly [due] from any
person natural, juridical and/or corporation in the Philippines;
2. To file criminal and/or civil complaints before the courts of justice in the
Philippines to enforce my rights and interest[s];
3. To attend hearings and/or Preliminary Conference[s], to make
stipulations, adjust claims, to settle and/or enter into Compromise
Agreement[s], to litigate and to terminate such proceedings; [and]
4. To sign all papers, documents and pleadings necessary for the
accomplishment of the above purposes.
2. YES
Ratio It is true that the lead sentence of paragraph 9-A, may be
incomplete or even grammatically incorrect as there might be a missing
word or phrase, but to our mind, a lacking word like "compromise" could
be supplied by the rest of the paragraph.
Reasoning Petitioners submit that the amended complaint violates Rule
and forty-two and one-half feet on the side, and has rented a part thereof
to other persons, and that when plaintiff discovered this anomaly and
violations of their verbal and initial agreement, defendant was told
sometime on October, 1945, to pay a monthly rental of fifty pesos (P50) a
month, or vacate the lot in question. For the month of October, Baguiaro
paid only the sum of P25, leaving a balance of P25, and for subsequent
months Baguiaro has refused and still refuses to pay the said rentals of
fifty pesos (P50), or vacate the premises, in spite of repeated demands.
-Prayer: defendant to pay to plaintiff the sum of fifty pesos (P50) as
monthly rentals for the lot occupied by him of the property of herein
plaintiff, beginning with the month of October, 1945, or to vacate the lot in
question, with costs against the defendant, and for such other and for
such other and further relief as this Honorable Court shall deem just and
equitable.
-Baguiaro filed motion to dismiss on the ground that the Court has no
jurisdiction over the subject matter of the complaint or suit, the action
being either for the collection of rentals of a real estate which do not reach
to two hundred pesos (P200) or for ejectment from the premises in
jurisdiction over the subject of the litigation.
-CFI motion to dismiss denied and sentencing Baguiaro either to pay two
hundred fifty pesos (P250) or to vacate the lot in question.
-Petition for Certiorari on the ground the respondent judge acted without
jurisdiction over the subject matter in trying and deciding the case, and at
the same time asked this Court to enjoin the respondent judge from taking
further action in the case during the pendency of this petition.
ISSUE
WON the court acted without jurisdiction
BAGUIARO V. BARRIOS
00SCRA 00
FERIA, 30 Aug. 1946
FACTS
-Complaint filed on January 7, 1945, in the Court of First Instance of Iloilo
by Emiliana Tupas Vda. de Atas against Baguiaro.
-De Atas is the exclusive and absolute and registered owner of the
following described property, situated in the City of Iloilo. The above lot,
without the improvements which were burned during the war, is assessed
at P4,680.
-That sometime in the month of July, 1946, Baguiaro verbally solicited the
permission of herein de Atas to construct a house of light materials on the
lot of some three brazas wide and three brazas long just enough for them
to sleep, at a monthly rental of twenty pesos (P20), payable in advance,
and de Atas told Baguiaro that she would think the matter; she found out
that defendant had already begun the construction of a nipa and bamboo
house with no approval from her;
-Instead of constructing a house of three brazas by three brazas as above
Baguiaro has built additions after additions to the house such that the
present house constructed is twenty-eight and one-half feet on the front
HELD
Yes, court acted without jurisdiction. It is an axiom, in civil procedure that if
the relief demanded is not the proper one which may be granted under the
law, it does not characterize or determine the nature of the plaintiff's
action, and that the relief to which the plaintiff is entitled based on the
facts alleged by him in his complaint, although it is not the relief
demanded, is what determines the nature of the action. And that is the
reason why it is generally added to prayers for relief, though not
necessary, the words "and for such other relief as the law warrants," or
others to the same effect. So if a plaintiff alleges, for instance, that the
defendant owes the former a certain amount of money and did not pay it
at the time stipulated, and prays that the defendant be sentenced to return
a certain personal property to the plaintiff, such prayer will not make or
convert the action of recovery, of debt into one of recovery of personal
property, and the court shall grant the proper relief, or sentence the
defendant to pay his debt to the plaintiff.
The attorney of the plaintiff, in his opposition to the defendant's motion to
dismiss filed in the court below, and in his answer to the petition for
certiorari in this Court, contends that the plaintiff's principal action is for
breach of contract, and therefore within the jurisdiction of the Court of First
Instance, because it is not capable of pecuniary estimation. There is no
such kind of action. Breach of contract may be the cause of action, but not
the action or relief itself. According to our Civil Code, a breach of contract
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one hundred and seventy-five pesos (P175), could the lower court have
sentenced the defendant to pay the amount claimed had the latter made a
confession of judgment?
Prof. Victoria A.
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Disposition
The respondent judge's decision in this case is set aside; with costs
against the respondent Emiliana Tupas Vda. de Atas. So ordered.
PARAS, J., dissenting:
- The willingness of the plaintiff to let the defendant, herein petitioner
Manuel Baguioro, retain possession of the land upon payment of the rent
(which, plaintiff alleges, should be P50) is plainly repugnant to the theory
that the principal purpose of the action is ejectment of the defendant or, in
the language of section 1 of Rule 72, "the restitution of possession."
Upon the other hand, giving such reasonable intendments to the
allegations of the complaint as are consistent with and implied by the relief
sought, the action may be one for the enforcement of a lease contract
implied or otherwise in which the court is asked to fix the amount of the
rent for want of corresponding stipulation. The claim that the rent ought to
be P50, when considered with the prayer "for such other and further relief
as this Honorable Court shall deem just and equitable," merely invokes
the discretion and judgment of the court regarding the righteousness of
said claim.
-While the complaint may be treated ;as one for simple ejectment, in the
light of some of its averments, the circumstance nevertheless does not
prevent it from being an action its denomination immaterial that may
be filed originally in the Court of First Instance, in view of the other
allegations and the prayer. In the latter situation, matters contained in the
pleading which are not necessary to, or are incompatible with, the
jurisdiction of the Court of First Instance may be considered surplusage.
The complaint might have been awkwardly drafted, but unless the
defendant was actually misled to his surprise or injury, it should be held
sufficient. (Lizarraga Hermanos vs. Yap Tico, 24 Phil., 504.) It is needless
to state that the nature of an action is determined by its allegations and
prayer. As long as the complaint makes out a case cognizable by the
Court of First Instance, the latter's jurisdiction will not be altered or taken
away simply because the action cannot prosper. The judgment in this
case was rendered after the defendant had been declared in default.
HILADO, J., dissenting:
-Liberally construed, as it should be (Rule 15, section 17), the plaintiff's
complaint is susceptible of two constructions: as a complaint in ejectment,
and as one aimed at invoking the general jurisdiction of the Court of First
Instance in actions for possession of real property, as regards the
plaintiff's land under section 56, paragraph 2, of Act No. 136. In choosing
between these two constructions in justice to the learning and intelligence
of counsel for the plaintiff, it seems to me that the court should have had
no difficulty in concluding that he meant and intended to resort to the latter
procedure, as he should be presumed to know such an elemental rule as
that which confers upon the municipal or justice of the peace court
exclusive original jurisdiction of forcible entry and unlawful detainer cases
within the first year following the accrual of the cause of action.
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ISSUE
WON CBCs failure to attach the requisite board resolution making Ms.
German an authorized signatory of certifications against forum shopping
was a fatal error and cannot be rectified by subsequent submission
thereof.
HELD
NO
Ratio The Court has relaxed, under justifiable circumstances, the rule
requiring the submission of these certifications and has applied the rule of
substantial compliance under justifiable circumstances with respect to the
contents of the certification. If the belated filing of the certification against
forum shopping for compelling reasons in previous rulings is allowed, with
more reason should the Court sanction the timely submission of such
certification though the proof of the signatorys authority was submitted
thereafter.
Reasoning The court has used the doctrine of stare decisis to enunciate
this principle. The ff. cases were cited as authority: Shipside Incorporated
v. CA, Ateneo De Naga University v. Manalo, and, Pascual & Santos Inc
v. Tramo Wakas Neighborhood Association. At the meeting of CBCs
Board of Directors, the Board, in a resolution, approved, confirmed and
CRUZ-AGANA V LAGMAN
G.R. No. 139018
CARPIO; April 11, 2005
NATURE
Petition for certiorari
FACTS
- On 18 March 1996, petitioner filed a Complaint for annulment of title with
prayer for preliminary mandatory injunction against respondent. Petitioner
claims that as the sole heir of one Teodorico Cruz, she is the sole owner
of a lot covered by Transfer Certificate of Title No. T-3907. Petitioner
further claims that the lot was fraudulently sold to Eugenio Lopez, Jr. who
later on transferred the lot to respondent.
- Respondent seasonably filed its Answer with compulsory counterclaim.
Petitioner moved to dismiss respondents counterclaim for lack of a
certificate of non-forum shopping.
- In an Order dated 11 March 1999, the trial court denied petitioners
motion to dismiss respondents counterclaim. The trial court reasoned
that respondents counterclaim is compulsory and therefore excluded from
the coverage of Section 5, Rule 7 of the Rules of Court. Petitioner moved
that the trial court reconsider its Order invoking the mandatory nature of a
certificate of non-forum shopping under Supreme Court Administrative
Circular No. 04-94. On 25 May 1999, the trial court reversed its 11 March
1999 Order and dismissed respondents counterclaim for lack of a
certificate of non-forum shopping.
- Respondent seasonably filed a motion for reconsideration arguing that
Administrative Circular No. 04-94 does not apply to compulsory
counterclaims following the ruling in Santo Tomas University Hospital v.
Surla. On 4 June 1999, the trial court again reversed itself and recalled its
Order dismissing respondents counterclaim. The trial court ruled that the
filing of a compulsory counterclaim does not require a certificate of nonforum shopping.
ISSUE
WON a compulsory counterclaim pleaded in an Answer can be dismissed
on the ground of a failure to accompany it with a certificate of non-forum
shopping
HELD
NO
- Santo Tomas clarified the scope of Administrative Circular No. 04-94 with
respect to counterclaims. The Court pointed out that this circular is
intended primarily to cover an initiatory pleading or an incipient
application of a party asserting a claim for relief. The distinction between
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main case that it is incapable of proceeding independently. The
counterclaim will require a re-litigation of the same evidence if the
counterclaim is allowed to proceed in a separate action. Even petitioner
recognizes that respondents counterclaim is compulsory. A compulsory
counterclaim does not require a certificate of non-forum shopping because
a compulsory counterclaim is not an initiatory pleading.
Disposition The decision petition is denied.
HELD
YES.
Reasoning. In Rava Development Corporation v. Court of Appeals, the
Court elaborated on this established standard in the following manner:
'The rule is that a defendant moving to dismiss a complaint on the ground
of lack of cause of action is regarded as having hypothetically admitted all
the averments thereof. The test of the sufficiency of the facts found in a
petition as constituting a cause of action is whether or not, admitting the
facts alleged, the court can render a valid Judgment upon the same in
accordance with the prayer thereof.
- In its Decision, CA said, among other the that petitioner Bank's
complaint did not state a cause of action against respondents Fajardo and
Del Mundo in their personal and individual capacities for the reason that.
no evidence had been presented to support such alleged liability on the
"so called alternative cause of action."
-The SC held that the CA was in reversible error. It was quite premature
for the Court of Appeals to consider evidence (or lack of evidence) outside
the complaint since the trial had not yet started. The allegations made by
the bank could be proven on trial.
WEE V GALVEZ
(supra)
FACTS
-this is regards the sisters, one in US and one in RP who is taking care of
the son of the sister in US. Allowance issues
ON MANNER OF MAKING ALLEGATIONS
etitioners submit that the amended complaint violates Rule 8, Section 133
of the 1997 Rules of Civil Procedure, as there is no plain and direct
statement of the ultimate facts on which the plaintiff relies for her claim.
Specifically, petitioners contend that the allegation in paragraph 9-A of the
amended complaint that "Earnest efforts towards have been made but the
same have failed" is clearly insufficient. The sentence is incomplete, thus
requires the reader of the pleading to engage in deductions or inferences
in order to get a complete sense of the cause of action, according to
petitioners.
-Respondent rebuts by stating that the amended complaint as well as the
annexes attached to the pleadings should be taken in their entirety. Thus
taken together, in their entirety, the amended complaint and the
attachments to the original complaint, clearly show that a sufficient cause
of action as it is shown and stated that earnest efforts towards a
compromise have been made, according to respondent.
-A paragraph is "a distinct section or subdivision of a written or printed
composition that consists of from one to many sentences, forms a
rhetorical unit. As a "short composition consisting of a group of sentences
dealing with a single topic," a paragraph must necessarily be construed in
its entirety in order to properly derive the message sought to be conveyed.
In the instant case, paragraph 9-A of the Amended Complaint deals with
the topic of efforts made by the respondent to reach a compromise
between the parties. Hence, it is in this light that the defective lead
sentence must be understood or construed.
-Having examined the Amended Complaint in its entirety as well as the
documents attached thereto, following the rule that documents attached to
a pleading are considered both as evidence and as part of the pleading,
we find that the respondent has properly set out her cause of action.
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SPOUSES DELOS SANTOS VS RTC (HON. EMMANUEL
C. CARPIO)
G.R. NO. 153696
AUSTRIA-MARTINEZ: September 11, 2006
NATURE:
Petition for review on certiorari under Rule 45 of the Rules of Court
FACTS:
- On January 3, 2001, Metropolitan Bank and Trust Company (or
"Metrobank") filed a complaint for sum of money against spouses
Humberto and Carmencita delos Santos (or "petitioners") before the
Regional Trial Court of Davao City.
- On January 22, 2001, petitioners were served with the summons,
together with a copy of the complaint. As petitioners failed to file an
answer within the reglementary period, Metrobank, on February 8, 2001,
filed a motion to declare them in default. The motion was set for hearing
on February 16, 2001.
- Acting on the motion, the lower court, presided over by Hon.
Emmanuel C. Carpio (or "respondent judge"), issued an order dated
February 12, 2001 declaring petitioners in default and setting the ex-parte
presentation of Metrobank?s evidence on March 7, 2001.
- On February 15, 2001, petitioners filed an opposition to Metrobanks
motion to declare them in default, claiming that upon receipt of the
summons, they immediately sought the services of Atty. Philip Pantojan
but it was only on February 12, 2001 that they were able to meet with Atty.
Pantojan. Petitioners alleged that not being "learned in law", they were
unaware "of the consequences of delay in the filing of their answer."
- On the same date, February 15, 2001, petitioners filed a motion to
admit answer, as well as the answer. In an order dated February 16, 2001,
respondent judge disregarded petitioners opposition to Metrobanks
motion for default
- On February 19, 2001, Metrobank filed an opposition to petitioners
motion to admit answer, arguing that said motion was rendered moot and
academic by the February 12, 2001 order. Metrobank also chided
petitioners for violating the three-day notice rule under Sec. 4, Rule 15 of
the 1997 Rules of Civil Procedure. In an order dated February 20, 2001,
the motion to admit answer was denied.
- On February 27, 2001, petitioners filed a motion to lift the order of
default; Metrobank opposed the motion.
- On March 2, 2001, respondent judge issued an order holding in
abeyance the ex-parte reception of evidence pending resolution of
petitioners motion to lift the order of default.
- On March 5, 2001, respondent judge issued an order denying
petitioners motion to lift the order of default and setting the reception of
Metrobanks evidence on March 7, 2001, as previously scheduled. On that
date (March 7, 2001), Metrobank presented its evidence and the case was
submitted for decision. Petitioners moved for reconsideration of the March
5, 2001 order but their motion was denied.
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Petition for a writ of certiorari to set aside certain orders of the CFI
dismissing a complaint for breach of contract and damages, denying
reconsideration, refusing to admit an amended complaint, and declaring
the dismissal final and unappealable.
requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be
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ISSUE:
1. WON LITIS PENDENTIA raised by petitioners as an affirmative defense
is a meritorious defense.
HELD:
1. YES
ReasoningSection 3, Rule 9 of the Rules of Court provides:
FACTS
- Petitioner, actress Dauden-Hernaez, files a complaint to recover P14,700
(the balance allegedly due to her for her services as leading actress), plus
damages, against private respondents Hollywood Far East Productions
(HFEP) and its President Valenzuela
- Upon motion of defendants, respondent court dismissed the complaint
because claim of plaintiff was not evidenced by any written document,
either public or private, and the complaint was Defective on its face for
violating CC A 1356 and 1358 11, as well as for containing defective allege,
petitions.
- Plaintiff sought reconsideration of the dismissal, and for admission of an
amended complaint, attached to the motion
- court denied the reconsideration and the leave to amend.
- a second reconsideration was filed
- court denied it as its allegations were more or less the same as the first
motion, and not accompanied by an affidavit of merits. The court further
declared the dismissal final and unappealable.
- hence this petition
- the respondent courts defense: The proposed amendment suffers from
the same vital defect of the original complaint, which is violation of A 1356
because the contract sued upon was not alleged to be in writing, and A
1358 in because the writing was absolute and indispensable because the
amount exceeds P500; and that the second motion for reconsideration did
not interrupt the period for appeal because it was not served on 3 days
notice.
ISSUES
1. WON the plaintiff-petitioner was entitled as of right to amend the
11 Article 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential
valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases,
the right of the parties stated in the following article cannot be exercised.
Article 1358. The following must appear in a public document: (1) Acts and contracts which have for their object the creation,
transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein
are governed by articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the
conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing
or which should appear in a public document, or should prejudice a third person; (4) The cession of actions or rights proceeding
from an act appearing in a public document.
All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one. But sales
of goods, chattels or things in action are governed by articles, 1403, No. 2 and 1405. (1280a)
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original dismissed complaint
2. WON xxx
HELD
1.YES
Reasoning Twhen a court sustains a demurrer or motion to dismiss, the
court must give the party plaintiff an opportunity to amend his complaint if
he so chooses. The first order of dismissal did not provide that the same
was without prejudice to amendment of the complaint, or reserve to the
plaintiff the right to amend his complaint, so the order was erroneous.
Hence, petitioner was within her rights in filing her so-called second
motion for reconsideration, which was actually a first motion against the
refusal to admit the amended complaint.
Also, since a motion to dismiss is not a responsive pleading, the plaintiffpetitioner was entitled as of right to amend the original dismissed
complaint. Paeste v Jaurigue:
Amendments to pleadings are favored and should be liberally
allowed in the furtherance of justice. (Torres vs. Tomacruz, 49 Phil. 913).
Moreover, under section 1 of Rule 17, Rules of Court, a party may amend
his pleading once as a matter of course, that is, without leave of court, at
any time before a responsive pleading is served. A motion to dismiss is
not a "responsive pleading". (Moran on the Rules of Court, vol. 1, 1952,
ed., p. 376). As plaintiffs amended their complaint before it was answered,
the motion to admit the amendment should not have been denied.
Disposition The order dismissing the complaint is set aside, and the case
is ordered remanded to the court of origin for further proceedings not at
variance with this decision.
various fees and charges; (v) PII refused to settle said obligations; (vi)
respondents Solid and PBAC also refused to pay petitioner despite
demand.
Respondent BF Homes filed a Motion to Dismiss on the
ground that it is undergoing rehabilitation receivership in the SEC and
pursuant to P.D. 902-A, the trial court has no jurisdiction to try the case.
Respondent PII also filed a Motion to Dismiss on the ground that the
complaint states no cause of action. The other respondents filed their
respective responsive pleadings.
The trial court, through Judge Roberto M. Lagman, issued an
Order suspending the case only as against respondent BF Homes and
denying respondent PII's motion to dismiss. Thereafter, hearing on the
merits ensued.
During trial, petitioner presented Rosauro Termulo, its
treasury department manager, who testified that the amount of
P19,035,256.57 was paid by petitioner to the PNB through the account of
the National Treasury to cover the principal loan and interests incurred by
PII. Consequently, petitioner filed a Motion to Amend Complaint to
Conform to Evidence pursuant to Section 5, Rule 10 of the Revised Rules
of Court, seeking to amend the pertinent portions of the complaint insofar
as it refers to the fact of payment and the amount paid by petitioner to
PNB.
Acting on the motion to amend, the trial court, at that time
presided by Judge Joselito J. Dela Rosa, issued the assailed Order,
dismissing the case without prejudice on the ground of failure of the
complaint to state a cause of action, thus in effect, reversing the Order
issued by Judge Lagman five years earlier. Petitioner's motion for
reconsideration of the order of dismissal was denied by Judge de la Rosa.
Subsequently, petitioner filed with the Supreme Court a petition for
certiorari against the trial court. The SC issued referred the case to the
Court of Appeals for disposition. The Court of Appeals dismissed the
petition and denied petitioners motion for reconsideration. Hence, this
petition.
ISSUES: (1) WON an order dismissing a petition without prejudice should
be appealed by way of ordinary appeal; (2) WON the Court of Appeals
erred in affirming the dismissal of the complaint on the ground that
petitioner failed to state a cause of action for not alleging loss or actual
payment made by it to PNB under its guarantees; (3) WON the complaint
stated a cause of action.
HELD:
(1) NO (under the 1997 Rules of Civil Procedure). Prior to the 1997 Rules
of Civil Procedure, an order dismissing an action may be appealed by
ordinary appeal. However, under Section 1(h), Rule 41 of the 1997 Rules
of Civil Procedure, no appeal may be taken from an order dismissing an
action without prejudice. It may be subject of a special civil action for
certiorari under Rule 65 of the 1997 Rules of Civil Procedure. Considering
that the assailed decision of the Court of Appeals was promulgated in
1994, respondent appellate court could not have committed any grave
abuse of discretion in dismissing CA-G.R. SP No. 31483. Nevertheless,
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petitioner to first sustain actual loss before it could have a cause of action
against respondents. The mere inclusion in petitioner's original complaint
of the allegation that the PNB had already called on the guarantees of
petitioner is sufficient to constitute a cause of action against respondents.
Clearly therefore, the original complaint, by itself, stated a valid cause of
action.
DISPOSITIVE: The petition is GRANTED. Let the original records of Civil
Case No. 86-38169 be REMANDED to the Regional Trial Court (Branch
29), Manila, for continuation of the trial on the merits.
ISSUE
1. WON the lower court erred in dismissing the complaint
NATURE
Petition for review on certiorari assailing decision and resolution of the CA
HELD
1. NO.
Ratio Unless the plaintiff has a valid and subsisting cause of action at the
time his action is commenced, the defect cannot be cured or remedied by
the acquisition or accrual of one while the action is pending, and a
supplemental complaint or an amendment setting up such later accrued
cause of action is not permissible.
Reasoning Subject to certain qualifications and except as otherwise
provided by law, an action commenced before the cause of action has
accrued is prematurely brought and should be dismissed, provided, an
objection on this ground is properly and seasonably interposed. The fact
that the cause of action accrues after the action is commenced and while
it is pending is of no moment.
- In this case, timely objection was made by counsel for the appellees
upon discovery of the immaturity of the action. The date when a civil
action is deemed commenced is determined by section 389 of the Code of
Civil Procedure. Under section 389, which was taken from section 405 of
the Code of Civil Procedure of California, the action is deemed
commenced upon the "filing of a complaint in the office of the clerk of the
court in which the action is to be instituted." The original complaint was
filed on October 24, 1935.
- The right to amend a pleading is not an absolute and unconditional right.
It is to be allowed in furtherance of justice under a sound judicial
discretion. This judicial discretion, upon the other hand, is of course not
without any restriction. The cause of action must exist at the time the
action was begun, and the plaintiff will not be allowed by an amendment to
introduce a cause of action which had no existence when the action was
commenced. As soon as an action is brought and the complaint is filed,
the proceedings thus initiated are not subject to the arbitrary control of the
parties or of the court, but must be dealt with in accordance with
recognized rules of pleading and practice. Amendments must be such,
and only such, as are necessary to promote the completion of the action
begun.
- It is true, that an amended complaint and the answer thereto take the
place of the originals which are thereby regarded as abandoned. That,
however, which is no cause of action whatsoever cannot by amendment
or supplemental pleading be converted into a cause of action: Nihil do re
accrescit ei qui nihil in re quando jua accresceret habet.
Disposition Order appealed from is AFFIRMED.
FACTS
- Spouses Bautista are the registered owners of a lot in Batangas.
- MMCI. filed with the RTC a complaint for cancellation of petitioners title
and damages, with application for a preliminary injunction, alleging that
without any color of right and through dubious means, petitioners were
able to obtain original title in their names.
- Spouses filed a motion to dismiss on the ground that it does not state a
cause of action. They averred that respondent is a private corporation,
hence, disqualified under the Constitution from acquiring public alienable
lands except by lease, and cannot be considered a real party in interest.
- RTC granted motion to dismiss.
- MMCI filed a motion for reconsideration with motion for leave to file an
amended complaint for quieting of title. Respondent alleged that the
technical description in petitioners title does not cover the disputed lot.
- Spouses filed their opposition, contending that the amended complaint
does not also state a cause of action and if admitted, respondents theory
of the case is substantially modified.
- RTC issued an Order denying petitioners motion to dismiss.
- Petitioners filed with the CA a special civil action for certiorari and
prohibition, alleging that the amended complaint does not cure the defect
in the original complaint which does not state a cause of action.
- CA dismissed the petition for certiorari and prohibition. Petitioners filed a
motion for reconsideration but it was denied.
Filing/
Service
of
pleadings,
judgments and other papers
BAUTISTA V MAYA-MAYA COTTAGES INC
G.R. No. 148361
SANDOVAL-GUTIERREZ; Nov. 29, 2005
ISSUE
WON the CA erred in holding that the trial court did not commit grave
abuse of discretion amounting to lack or excess of jurisdiction in admitting
respondents amended complaint
HELD
NO
- Section 2, Rule 10 of the 1997 Rules of Civil Procedure 12 shows that
before the filing of any responsive pleading, a party has the absolute
right to amend his pleading, regardless of whether a new cause of action
or change in theory is introduced.
- Petitioners had not yet filed a responsive pleading to the original
complaint. What they filed was a motion to dismiss, which is not a
responsive pleading as contemplated by the Rule. Thus respondent, as a
plaintiff, may file an amended complaint even after the original complaint
was ordered dismissed, provided that the order of dismissal is not yet
final, as in this case.
12 SEC. 2. Amendments as a matter of right. A party may amend his pleading once as a matter of right at any time before a
responsive pleading is served or, in the case of a reply, at any time within ten (10) days after it is served.
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ISSUE/S
WON CA decision should be reversed
HELD
NO
- Clients are bound by the actions of their counsel in the conduct of their
case. If it were otherwise, and a lawyers mistake or negligence was
admitted as a reason for the opening of a case, there would be no end to
litigation so long as counsel had not been sufficiently diligent or
experienced. The only exception to the general rule is when the counsels
actuations are gross or palpable, resulting in serious injustice to client. In
this case, while Atty. Aquino, counsel of petitioner, was far from being
vigilant in protecting the interest of his client, his infractions cannot be said
to have deprived petitioner of due process.
- Petitioner was able to actively participate in the proceedings a quo.
While it may have lost its right to appeal, it was not denied its day in
court. Right to appeal is not a natural right or a part of due process but
only a statutory privilege and may be exercised only in the manner and in
accordance with the provisions of law.
- When petitioner is at fault or not entirely blameless, there is no reason
to overturn well-settled jurisprudence.
- Petitioner was wanting in all these areas. Not only did it fail to regularly
check on the status of the case, it also failed to ensure that it could be
notified of the decision as soon as it was promulgated. Petitioner did not
inform the court that it has severed its relationship with Atty. Aquino.
Neither did it hire a new lawyer soon after Atty. Aquino allegedly ceased to
be its counsel.
- That Atty. Aquino refused to receive a copy of the decision and no
substituted service was effected does not erase the fact that a copy of the
trial court decision had earlier been sent by registered mail to Atty. Aquino
This is sufficient service of the decision on petitioner since service upon
counsel of record at his given address is service to petitioner.
- In cases where service was made on the counsel of record at his given
address, notice sent to petitioner itself is not even necessary. Even then,
in the present case, the trial court had sent a copy of the decision to
petitioners known address.
Obiter
Court reiterates the distinction between petition for review on certiorari
under Rule 45 and petition for certiorari under Rule 65. It should be
recalled that a petition under Rule 45 brings up for review errors of
judgment while a petition under Rule 65 concerns errors of jurisdiction or
grave abuse of discretion amounting to lack or excess of jurisdiction.
Grave abuse of discretion is not an allowable ground under Rule 45.
However, a petition for review on certiorari under Rule 45 may be
COMPUTATION OF TIME
SPS. CONRADO and MA. CORONA ROMERO vs. CA,
SATURNINO S. ORDEN
G.R. No. 142406
AUSTRIA-MARTINEZ; May 16, 2005
NATURE
Petition for certiorari filed [R65]
FACTS
- Ma. Corona Romero and her siblings executed a letter-contract to sell
with private respondent Saturnino Orden.
- In said contract, Orden proposed to purchase from Romero and her
siblings a property located at Denver cor. New York Sts., Cubao, QC for
the total amount of P17M.
- The contract stipulated that private respondent shall pay petitioner the
amount of P7M upon the execution of the deed of absolute sale, the
balance of P10M not later than December 19, 1996 and that Orden shall
shoulder the expenses to evict the squatters on the property.
- When Orden failed to pay the down payment, petitioner Corona told him
that she was rescinding the contract to sell.
- Orden then filed a complaint for specific performance and damages
against petitioners before the QC RTC alleging that he has complied with
his obligation to evict the squatters on the property and is entitled to
demand from petitioners the performance of their obligation under the
contract.
- Simultaneous with the filing of the complaint, Orden caused the
annotation of a notice of lis pendens on the TCT.
- August 11, 1997, Manuel Y. Limsico, Jr. and Aloysius R. Santos,
subsequent buyers of the subject property sold by Corona and her
siblings, filed a motion for leave to intervene with the RTC and were
admitted as defendants-intervenors. - They filed a motion for the
cancellation of lis pendens which the RTC granted in its Resolution saying
that the evidence presented by Orden does not bear out the main
allegations in the complaint and that he does not have any actionable right
over the subject property there being no deed of sale executed between
him and the defendants over the subject real properties as offered in the
alleged agreement.
- RTC: denied Ordens MR.
- Nov. 16, 1998, Orden filed a petition for certiorari before the CA seeking
the nullification of the resolutions of the RTC and asked for the reannotation of the notice of lis pendens on the TCT.
- The CA granted the petition on 4 grounds: First, they said that the
general rule is a notice of lis pendens cannot be cancelled while the
A2010
WON the CA committed grave abuse of discretion in ordering the reannotation of the lis pendens.
HELD
NO. Petitioners have failed to show that the CA committed GAD.
Reasoning. Heirs of Eugenio Lopez, Sr. vs. Enriquez: Lis pendens, which
literally means pending suit, refers to the jurisdiction, power or control
which a court acquires over property involved in a suit, pending the
continuance of the action, and until final judgment.
-Lim v. Vera Cruz: Founded upon public policy and necessity, lis pendens
is intended to keep the properties in litigation within the power of the court
until the litigation is terminated, and to prevent the defeat of the judgment
or decree by subsequent alienation.
- Yared vs. Ilarde: Its notice is an announcement to the whole world that a
particular property is in litigation and serves as a warning that one who
acquires an interest over said property does so at his own risk or that he
gambles on the result of the litigation over said property.
- The filing of a notice of lis pendens has a two-fold effect: (1) to keep the
subject matter of the litigation within the power of the court until the entry
of the final judgment to prevent the defeat of the final judgment by
successive alienations; and (2) to bind a purchaser, bona fide or not, of
the land subject of the litigation to the judgment or decree that the court
will promulgate subsequently.
- Magdalena Homeowners Association, Inc. vs. CA: a notice of lis
pendens is appropriate in the following:
(a) an action to recover possession of real estate;
(b) an action to quiet title thereto;
(c) an action to remove clouds thereon;
(d) an action for partition; and
(e) any other proceedings of any kind in Court directly affecting the title
to the land or the use or occupation thereof or the buildings thereon.
-Atlantic Erectors, Inc. vs. Herbal Cove Realty Corp.: Resorting to lis
pendens is not necessarily confined to cases that involve title to or
possession of real property but also applies to suits seeking to establish a
right to, or an equitable estate or interest in, a specific real property; or to
enforce a lien, a charge or an encumbrance against it.
- The doctrine of lis pendens has no application to a proceeding in which
the only object sought is the recovery of a money judgment, though the
title or right of possession to property be incidentally affected. It is
essential that the property be directly affected such as when the relief
sought in the action or suit includes the recovery of possession, or the
enforcement of a lien, or an adjudication between conflicting claims of
title, possession, or the right of possession to specific property, or
requiring its transfer or sale. Even if a party initially avails of a notice of lis
pendens upon the filing of a case in court, such notice is rendered
nugatory if the case turns out to be a purely personal action. In such
event, the notice of lis pendens becomes functus officio.
-To put the property under the coverage of the rule on lis pendens, all a
party has to do is to assert a claim of possession or title over the subject
property. It is not necessary that ownership or interest over the property is
proved.
-By praying for the Romeros to be bound by the terms of their contract
(ie. Specific performance and damages), Orden in effect asks the court to
Prof. Victoria A.
56
Avena
ISSUE
order petitioners to fulfill their promise to sell the property for the amount
of P17M.
-While Orden did not explicitly state that he was running after the
ownership of the property, a simple reading of the complaint would show
that such was his intent. This is sufficient for purposes of annotating lis
pendens.
- There is no requirement that the party applying for the annotation must
prove his right or interest over the property sought to be annotated. Thus,
even on the basis of an unregistered deed of sale, a notice of lis pendens
may be annotated on the title.
-Said annotation cannot be considered as a collateral attack against the
certificate of title based on the principle that the registration of a notice of
lis pendens does not produce a legal effect similar to a lien.
- The rules merely require that an affirmative relief be claimed since a
notation of lis pendens neither affects the merits of a case nor creates a
right or a lien. It only protects the applicants rights which will be
determined during trial.
Dispositive the petition for certiorari is DISMISSED for lack of merit.
A2010
January 10, 2002, within which to file his petition. The petitioner filed his
petition for review with the Court of Appeals on January 10, 2003.
-On January 13, 2003, the CA issued a Resolution granting the
petitioners first motion for a fifteen-day extension counted from
December 7, 2002 or until December 22, 2002, within which to file said
petition. On February 20, 2003, the CA issued a Resolution denying
petitioners second motion for having been filed out of time. The petitioner
filed a motion for reconsideration of the February 20, 2003 Resolution
claiming that, since the last day to file his petition was a Saturday,
December 7, 2002, and the next day, December 8, 2002 was a Sunday,
the last day for filing the petition was December 9, 2002. He reasoned that
since he filed his motion for extension of time to file his petition for review
on the said date, the said motion was timely filed.
-On August 19, 2003, the CA issued a Resolution denying the petitioners
motion, relying on A.M. No. 00-2-14-SC issued on February 29, 2000,
which provides that any extension of time to file the required pleading
should be counted from the expiration of the period regardless of the fact
that the said due date is a Saturday, Sunday, or legal holiday.
ISSUE
WON the petitioner timely filed his second motion for extension of time to
file his petition for review.
Prof. Victoria A.
57
Avena
HELD
NO. Petitioners motion for a second extension of time to file his petition
for review was filed out of time.
Reasoning. Section 1, Rule 22, of the 1997 Rules of Civil Procedure
provides:
Section 1. How to compute time. In computing any period of time
prescribed or allowed by these Rules, or by order of the court, or by any
applicable statute, the day of the act or event from which the designated
period of time begins to run is to be excluded and the date of performance
included. If the last day of the period, as thus computed, falls on a
Saturday, a Sunday, or a legal holiday in the place where the court sits,
the time shall not run until the next working day.3
-The Court clarified the provision when it issued A.M. No. 00-2-14-SC,
which reads:
Whereas, the aforecited provision applies in the matter of filing of
pleadings in courts when the due date falls on a Saturday, Sunday, or
legal holiday, in which case, the filing of the said pleading on the next
working day is deemed on time;
Whereas, the question has been raised if the period is extended ipso jure
to the next working day immediately following where the last day of the
period is a Saturday, Sunday or legal holiday so that when a motion for
extension of time is filed, the period of extension is to be reckoned from
the next working day and not from the original expiration of the period;
NOW THEREFORE, the Court Resolves, for the guidance of the Bench
and the Bar, to declare that Section 1, Rule 22 speaks only of "the last day
of the period" so that when a party seeks an extension and the same is
granted, the due date ceases to be the last day and hence, the provision
no longer applies. Any extension of time to file the required pleading
SUMMONS
modes of service
1. voluntary appearance
2. Voluntary submission
RODRIGUEZ VS ALIKPALA
(supra)
FACTS
-Spouses Tolentino were co-movants in the motion for a judgment on a
compromise with Spouses Rebollado
VOLUNTARY SUBMISSION
the Tolentinos freely and voluntarily entered into the compromise
agreement which became the basis of judgment of the City Court. Under
the circumstances, the Tolentinos are estopped the very authority they
invoked. And even assuming that estoppel lies, we cannot set aside the
principle of equity that jurisdiction over a person not originally a party
to a case may be acquired, upon proper conditions, thru the
voluntary appearance of the person before the court. By coming
forward with the original litigants in moving for a judgment on compromise
and by assuming such interest in the final adjudication of the case
together with the Robellados, the Tolentinos effectively submitted
themselves to the jurisdiction of the City Court.
-Jurisdiction over the plaintiff can be acquired by the court upon filing of
the complaint. On the other hand, jurisdiction over the defendants can
be acquired by the court upon service of valid summons and upon
voluntary appearance/submission of a person in court.
3. service in person
TOYOTA CUBAO V. CA (GUEVARRA)
G.R. No. 126321
VITUG; October 23, 1997
NATURE
Petition for review
FACTS
-Petitioner Toyota Cubao, Inc., undertook repairs on the car owned by
private respondent Guevarra. The repair costwas paid by means of BPI
Check drawn by Guevarra in favor of Toyota.
-The check was dishonored.
-Guevarra failed to make good the check
-Toyota a civil case for collection of the unpaid account.
-trial court issued the summons to Guevarra at his address in 29
Burgos Street, Calamba, Laguna.
-Process Server Antonio Rimas of the Regional Trial Court of Calamba,
Laguna, submitted to the trial court a return on the service; it read in full:
"Respectfully returned to the Branch Clerk of Court, Regional Trial Court,
National Capital Judicial Region, Branch 92, Quezon City, the herein
attached original summon in the above entitled case with the information
that it was duly served to the defendant DANILO A. GUEVARRA, thru her
sister-in-law, GLORIA CABALLES, by leaving a copy of the summons
and complaint but refused to sign.
-Toyota claims that Guevarra had failed to file an ANSWER within the
reglementary period, moved to declare Guevarra in default. A copy of the
motion was furnished Guevarra, through registered mail with return card,
at 29 Burgos Street, Calamba, Laguna.
-petitioner filed the registry return card indicating receipt of the motion
-trial court granted petitioner's Motion To Declare Defendant In Default
and allowed an ex-parte presentation of petitioner's evidence.
-TC in favor of Toyota
- a writ of execution was issued to implement the decision. The Deputy
Sheriff, implementing the writ, levied on Guevarra's Toyota Corolla. The
notice of levy was served on Guevarra personally but he refused to sign
the receipt thereof, expressed surprise over it, and stated that he was not
aware of any case instituted against him. Guevarra turned over the vehicle
but filed a certiorari petition before the CA claiming that the trial court did
not acquire jurisdiction over his person because of a defective service of
summons on him.
-CA in favor of Guevarra-annulled and set aside the default judgment, the
writ of execution, the levy upon execution and the sale at public auction of
the vehicle-saying that substituted service of summons was not valid
-Toyota went to SC
ISSUE
2. WON service of summons is defective
HELD
A2010
2. YES.
Reasoning
It is not here disputed that substituted service of summons has been
resorted to by the process server but that, unfortunately, the server's
return did not state the facts or the needed particulars that could justify the
substituted service. The constitutional requirement of due process, this
Court has held in Boticano vs. Chu, Jr., exacts that the service (of
summons) be such as may reasonably be expected to give the notice
desired. Once the service provided by the rules accomplishes that end,
"the requirement of justice is answered; the traditional notions of fair play
are satisfied; due process is served." Although Moran, on the Rules of
Court, has said that "Irregularities of this kind (substituted service) (might)
be cured by proof that the copies (have) actually been delivered to the
defendant," in the case at bar, however, private respondent appears to
have been notified of the case for the first time only at the time the levy on
execution of judgment was effected by the sheriff.
The fact of the matter was that Guevarra evidently had been unaware of
the proceedings before the RTC. Upon learning of the adverse decision,
but already too late in the day for him to get relief from that court, he filed,
instead, a certiorari petition before the Court of Appeals. The appellate
court neither abused its discretion nor was in error when it refused to
consider the affidavit of the process server (declaring the concomitant
facts required to be incorporated in the return) which was presented to it
for the first time only as an annex to its Reply filed with the tribunal. For
the appellate court to have accepted the affidavit favorably on its face
value, without hearing, would have again been a denial to the defendant
(herein private respondent) of his right to due process.
Prof. Victoria A.
58
Avena
4. Substituted service
QUELNAN V. VHF PHIL.
G.R. No. 138500
GARCIA; September 16, 2005
NATURE
Petition for review on certiorari
FACTS
-VHF Phils filed an ejectment suit in the MeTC against Quelnan involving
a condominium unit
-MeTC in favor of VHF Phils.
-on its finding that "summons together with a copy of the complaint was
served [on petitioner] thru his wife on August 25, 1992 by substituted
service" and that petitioner "failed to file his answer within the
reglementary period", came out with a decision dated November 23, 1992
-Copy of the aforementioned decision was served on petitioner by
registered mail but the same was returned unclaimed on account of
petitioner's failure to claim the same despite the postmaster's three (3)
ISSUE
3. WON THE METROPOLITAN TRIAL COURT OF MANILA NEVER
ACQUIRED JURISDICTION OVER THE PETITIONER, HENCE ITS
DECISION CANNOT BECOME FINAL AND EXECUTORY.
HELD
3. NO.
Reasoning The records clearly reveal that a copy of the MeTC decision
was sent to petitioner through registered mail at his given address on
November 25, 1992. It should be noted that petitioner was not
represented by counsel during the proceedings before the MeTC. The first
notice to him by the postmaster to check his mail was on November 25,
1992. Thereafter, subsequent notices were sent by the postmaster on
December 7, 1992 and December 11, 1992. For sure, a certification that
the registered mail was unclaimed by the petitioner and thus returned to
the sender after three successive notices was issued by the postmaster.
Hence, service of said MeTC decision became effective five (5) days after
November 25, 1992, or on November 30, 1992, conformably with Rule 13,
Section 10 of the 1997 Rules of Civil Procedure, which reads:
SEC. 10. Completeness of Service. Personal service is complete
upon actual delivery. Service by ordinary mail is complete upon the
expiration of ten (10) days after mailing, unless the court otherwise
provides. Service by registered mail is complete upon actual receipt by the
addressee, or after five (5) days from the date he received the first notice
of the postmaster, whichever date is earlier. (Emphasis supplied)
SUMMONS RULE 14
Contents, when issued, by whom
issued
Modes of Service
1. Voluntary Appearance
2. Voluntary Submission
3. Service in Person
4. Substituted Service
5. Extra-territorial Service
GUIGUINTO CREDIT COOPERATIVE, INC V TORRES
G. R. No. 170926
YNARES-SANTIAGO; September 15, 2006
NATURE
Petition for review on certiorari under Rule 45 of the Rules of Court of the
decision and resolution of the Court of Appeals
FACTS
-Respondents Aida Torres, Nonilo Torres, and Sheryl Ann Torres-Holgado,
are members of Guiguinto Credit Cooperative, Inc. (GUCCI). They availed
of loans from the cooperative but were unable to pay on the due dates
despite demands.
A2010
-On March 24, 2003, petitioner filed a complaint before the RTC of
Bulacan for collection of sum of money and damages
-Summons against respondents were served through their Secretary,
a certain Benita S. Pagtalunan, who received the same on April 22,
2003. The Return of Summons was filed on April 24, 2003 by Process
Server Valeriano P. Badato
-On November 18, 2003, petitioner filed a motion to declare respondents
in default
-TC granted said petition, thereby allowing petitioner to present its
evidence ex-parte
-After presenting petitioners evidence ex-parte, the trial court rendered
judgment on September 15, 2004, ordering respondents to pay petitioner
the ff: 1. For Aida Torres, the amount of P163,516.80 from April, 2004 plus
legal interest until the said amount is fully paid; 2. For Nonilo Torres the
amount of P278,151.58 from April, 2004 plus legal interest until the said
amount is fully paid; 3. For Sheryl Ann Torres the amount of P15,903.93
from April, 2004 plus legal interest until the said amount is fully paid; 4. To
pay P10,000.00, jointly and severally, as attorneys fees 5. Costs of suit.
-Petitioner thereafter moved for the issuance of a writ of execution, which
was granted and accordingly, the writ of execution was issued on even
date.
-On May 4, 2005, Sheriff Felixberto L. Samonte levied respondents house
and lot and the same was scheduled to be sold at public auction on June
7, 2005 when the Court of Appeals issued a temporary restraining order.
-On August 24, 2005, the Court of Appeals annulled the judgment of the
trial court on the ground that it did not acquire jurisdiction over the persons
of respondents since they were not validly served with summons and
neither did they voluntarily appear in court.
-According to the appellate court, the service of summons to Pagtalunan
was in violation of Section 6, Rule 14 of the Rules of Court because there
was no explanation why resort to substituted service of summons was
made. Thus, the appellate court held that respondents were deprived of
their right to due process.
-The Court of Appeals denied petitioners motion for reconsideration,
hence, this petition
necessary for the court to validly try and decide the case. Jurisdiction over
the person of a resident defendant who does not voluntarily appear in
court can be acquired by personal service of summons as provided under
Section 7, Rule 14 of the Rules of Court.
-If he cannot be personally served with summons within a
reasonable time, substituted service may be made in accordance
with Section 8 of the said Rule. If he is temporarily out of the country,
any of the following modes of service may be resorted to: (1)
substituted service set forth in Section 8; (2) personal service
outside the country, with leave of court; (3) service by publication,
also with leave of court; or (4) any other manner the court may deem
sufficient.
-In these types of civil actions (in personam), summons on the defendant
must be served by handing a copy thereof to the defendant in person, or
in case of refusal, by tendering it to him. If efforts to find defendant
personally makes prompt service impossible, service may be effected by
leaving copies of the summons at the defendants dwelling house or
residence with some person of suitable age and discretion residing
therein, or by leaving the copies at the defendants office or regular place
of business with some competent person in charge thereof.
-The proper service of summons is a critical step in litigation because
upon such service rests the courts acquisition of jurisdiction over the
person of the defendant.
-In the absence of a valid waiver, trial and judgment without such service
are null and void.
-In the instant case, the Court of Appeals correctly ruled that since
substituted service was availed of in lieu of personal service, there should
be a report stating that Pagtalunan was one with whom respondents had a
relationship of trust and confidence that would ensure that the latter will
receive or be notified of the summons issued in their names.
-This is because substituted service may only be availed of when the
respondents could not be served personally within a reasonable period of
time, and such impossibility of prompt service must be shown by stating
that earnest efforts have been made to find the respondents personally
and that such efforts have failed.
-Such requirements under Sections 6 and 7 of Rule 14 must be followed
strictly, faithfully and fully in order not to deprive any person of his property
by violating his constitutional right to due process. The statutory
requirements of substituted service must be strictly construed since it is an
extraordinary method of service in derogation of personal service of
summons, availed of only under certain conditions imposed by the Rules
of Court. Any substituted service other than that authorized under Section
7 is deemed ineffective and contrary to law.
-Granting that Pagtalunan is the personal secretary of Aida Torres, as
appearing in the Affidavit of Merit of Sheryl Ann Torres and attached to the
Petition of Annulment filed before the Court of Appeals, there is no
showing that the former had indeed a relationship of trust and confidence
with the three respondents. It appears that the process server hastily
and capriciously resorted to substituted service of summons without
ascertaining the whereabouts of the respondents. Such service of
summons is not binding upon respondents Nonilo and Sheryl Ann
Torres whose relationship with Pagtalunan was neither readily
Prof. Victoria A.
59
Avena
ISSUE
WON summons was not validly served on the respondents, and therefore
the CA correctly annulled the judgment of the RTC
HELD
Yes.
-Summons is a writ by which the defendant is notified of the action
brought against him. Service of such writ is the means by which the court
acquires jurisdiction over his person. Jurisdiction over the person of the
defendant is acquired through coercive process, generally by the service
of summons issued by the court, or through the defendants voluntary
appearance or submission to the court.
-Where the defendant is a natural person, service may be personal,
substituted, by publication and such other mode of service as the court
may deem sufficient.
-In an action in personam, jurisdiction over the person of the defendant is
A2010
assigned all his rights under the Deed of Sale with Assumption of
Mortgage to his brother, intervenor Raoul.
- PBC then applied for the foreclosure of the mortgage, and notice of sale
was published in the Luzon Weekly Courier on June 30, July 7, and July
14, 1968; auction sale was conducted a month after, and the property was
sold to PBC for P84,387.00.
- PBC specifically denied most of the allegations: (a) that the defendant
has not given its consent to the sale of the mortgaged property; (b) that
the demand letters and notice of foreclosure were sent to Jose Lozano at
his address; (c) that it was notified for the first time about the alleged sale
after it had foreclosed the Lozano mortgage; that the property in question
remained registered in the name of Lozano in the land records of Rizal
and there was no entry, notation or indication of the alleged sale.
- After petitioner Honesto Bonnevie had rested his case, petitioner Raoul
SV Bonnevie filed a motion for intervention, which was granted.
- CFI dismissed the complaint. MFR was also denied. CA affirmed.
- Whether or not the notice of auction sale was posted for the period
required by law is a question of fact. It can no longer be entertained by
this Court. Nevertheless, the records show that copies of said notice were
posted in three conspicuous places in the municipality of Pasig, Rizal
namely: the Hall of Justice, the Pasig Municipal Market and Pasig
Municipal Hall.
- A single act of posting (which may even extend beyond the period
required by law) satisfies the requirement of law. The burden of proving
that the posting requirement was not complied with is now shifted to the
one who alleges non-compliance.
Disposition The appeal being devoid of merit, the decision of the Court of
Appeals is hereby AFFIRMED. Costs against petitioners.
Prof. Victoria A.
60
Avena
ISSUE/S
1. WON the mortgage executed by the Lozanos in favor of PBC is valid
2. WON extrajudicial foreclosure is valid
HELD
1. YES
Reasoning A mortgage follows the property whoever the possessor may
be and subjects the fulfillment of the obligation for whose security it was
constituted. Petitioners voluntarily assumed it and are, therefore,
estopped from impugning its validity. They did not secure the consent of
respondent Bank to the sale with assumption of mortgage.
2. YES
Reasoning Act No. 3135 does not require personal notice on the
mortgagor.13 Honesto Bonnevie was not entitled to any notice because as
of May 14, 1968, he had transferred and assigned all his rights and
interests in favor of intervenor Raoul without informing the Bank.
- Also, petitioners were placed on constructive notice. The notice of sale
was published in the Luzon Courier on June 30, July 7 and July 14, 1968
and notices of the sale were posted for not less than twenty days in at
least three (3) public places in the Municipality where the property is
located. Act No. 3135 merely requires that such notice shall be published
once a week for at least three consecutive weeks. Such phrase, as
interpreted by this Court in Basa vs. Mercado does not mean that notice
should be published for three full weeks.
- To be a newspaper of general circulation, it is enough that "it is published
for the dissemination of local news and general information; that it has a
bona fide subscription list of paying subscribers; that it is published at
regular intervals." The newspaper need not have the largest circulation so
long as it is of general circulation.
13
Section 3. Notice shall be given by posting notices of the sale for not less than
twenty days in at least three public places of the municipality or city where the
property is situated, and if such property is worth more than four hundred pesos,
such notice shall also be published once a week for at least three consecutive weeks
in a newspaper of general circulation in the municipality or city.
the contracts entered into by Dominador and from portraying the IVO as
one that defaults on its contracts and obligations and has fallen into bad
times and from interfering with IVO's normal conduct of business. IVO
also prayed that the defendants pay it damages worth more than P21M.
- Respondent Judge Soriano authorized IVO to effect extraterritorial
service of summons to all the defendants through DHL Philippines Corp.
Pursuant to that order, the petitioners were served with summons and
copy of the complaint by DHL courier service.
- On April 25, 1987, without submitting to the court's jurisdiction and only
for the purpose of objecting to said jurisdiction over their persons, the
petitioners filed motions to dismiss the complaint against them on the
ground that the extraterritorial service of summons to them was improper
and that hence the court did not acquire jurisdiction over them. The court
denied their motions to dismiss and upheld the validity of the
extraterritorial service of summons to them on the ground that "the
present action relates to property rights which lie in contracts within the
Philippines, or which defendants claim liens or interests, actual or
inchoate, legal or equitable. And one of the reliefs demanded consists,
wholly or in part, in excluding the defendants from any interest in such
property for the reason that their transactions with plaintiff's former
president are ultra vires." Furthermore, "as foreign corporations doing
business in the Philippines without a license, they opened themselves to
suit before Philippine courts, pursuant to Sec. 133 of the Corporation
Code of the Philippines." The petitioners' motions for reconsideration of
that order were also denied by the court. Hence this petition for certiorari
with a prayer for the issuance of a temporary restraining order.
ISSUE
WON the extra territorial service of summons was proper
HELD
NO.
Section 17, Rule 14 of the Rules of Court provides only 4 instances in
which extraterritorial service of summons is proper, namely: "(1) when the
action affects the personal status of the plaintiffs; (2) when the
action relates to, or the subject of which is, property within the
Philippines, in which the defendant has or claims a lien or interest,
actual or contingent; (3) when the relief demanded in such action
consists, wholly or in part, in excluding the defendant from any
interest in property located in the Philippines; and (4) when the
defendant non-resident's property has been attached within the
Philippines"
The complaint in this case does not involve the personal status of the
plaintiff, nor any property in the Philippines in which the defendants have
or claim an interest, or which the plaintiff has attached. The action is
purely an action for injunction to restrain the defendants from enforcing
against IVO ("abusing and harassing") its contracts for the delivery of
coconut oil to the defendants, and to recover from the defendants P21
million in damages for such "harassment." It is clearly a personal action
as well as an action in personam, not an action in rem or quasi in
rem. "An action in personam is an action against a person on the basis of
his personal liability, while an action in remedies is an action against the
A2010
Prof. Victoria A.
61
Avena
MONTALBAN V. MAXIMO
22 SCRA 1070
SANCHEZ, March 15, 1968
NATURE
Appeal from the orders of CFI Manila
FACTS
-Fr. Gerardo Maximo was involved in a motor vehicle accident where the
son of the petitioners suffered injuries. Petitioners filed suit against Fr.
Maximo for damages. Summons were served at the Malabon Parish
where Fr. Maximo was allegedly residing. However, Fr. Maximo was in
Europe when the summons were served, Fr. Bautista was the one who
received the summons. Fr. Bautista wrote to the Clerk of Court of CFI
Manila informing him that Fr. Maximo was in Europe.
-On Plaintiffs motion, lower court declared Fr. Maximo in default,
sentenced Fr. Maximo to pay for damages. The Montalbans even wrote to
Fr. Maximo at the Malabon Catholic Church informing him of the lower
courts decision and requesting hi to comply with the decision. Fr. Maximo
replied that he was not aware of the civil case against him and that he was
acquitted in the criminal case.
-Deputy Sheriff of Rizal notified Fr. Maximo of the issuance of writ of
execution and demanded payment. Return to writ expressed that Fr.
Maximo is financially hard up and had no property. Alias writ of execution
issued. Copy received by Fr. Maximo. Deputy Sheriff attached and levied
on a residential house in Caloocan allegedly belonging to Fr. Maximo.
-After 2 years, 2 months, Fr. Maximo admittedly learned of lower courts
decision and filed for ANNULMENT OF ENTIRE PROCEEDINGS on
verified motion on the grounds that the summons were not duly served
(based on then Sec.7, Rule 7 and Sec18, Rule 14 of ROC) therefore, the
court did not acquire jurisdiction over his person so the trial and the
decision were null and void. His verified motion was denied, MFR was
rejected.
ISSUE
WON the summons in a suit in personam against a resident of the
Philippines temporarily absent may be validly effected by substituted
service under Sec. 8 Rule 14 (on residents temporarily out of the
Philippines)
HELD
*ON argument that Sec18 (in relation to sec17) is the sole provision
that governs summons upon a defendant temporarily absent in an
action in personam: substituted service out of the Philippines - is but
one of the modes of effective service to bring a defendant in court. The
normal method of service of summons on one temporarily absent is by
substituted service. Personal service outside the country and service by
publication are not ordinary means of summoning defendants.
-in suits in personam, the more circuitous procedure delineated in
Sections 17 and 18 is resorted to by a plaintiff if defendants dwelling
house or residence or place of business in this country is not known; or, if
known, service upon him cannot be had thereat upon the terms of Sec8.
Since personal service is impossible, resort to substituted service
becomes a necessity.
*ON fact that judgment has been long final: the judgment enjoys the
presumption of regularity. It is, unless striken down, entitled to respect.
Non quieta movere. Because public policy and sound practice demand
that, at the risk of occasional errors, judgments of courts should become
final at some definite date fixed by law.
Disposition. Orders affirmed.
DE MIDGELY VS FERANDOS
64 SCRA 23
AQUINO, May 13, 1975
NATURE
Original Actions. Certiorari and contempt.
FACTS
- Quemada, allegedly the illegitimate son of Alvaro Pastor, Sr., was
appointed as special administrator of the latters estate by the CFI of
Cebu. As such, he filed a complaint against his half siblings, the spouses
Alvaro Pastor, Jr. and Maria Elena Achaval, and Sofia Midgely, who were
all at that time citizens of Spain and residing in that country. The suit also
named Atlas Mining as co-respondent. The suit was to settle the question
of ownership over certain properties and rights in some mining claims as
Quemada believed that those properties belong to the estate of Alvaro
Pastor, Sr.
- Quemada, on his own, caused extraterritorial service of summons to be
made through the Department of Foreign Affairs and the Philippine
Embassy in Madrid, Spain, which effected the service of the summons
through registered mail upon De Midgely and Pastor, Jr. at their respective
addresses in Alicante and Barcelona.
- Both De Midgely and Pastor entered a special appearance and filed a
motion to dismiss on the ground of lack of jurisdiction as they are nonresidents. They further alleged that earnest efforts toward a compromise
have not been made as required in the Civil Code in suits between
members of the same family, The motion was denied by Judge Ferandos
and he ruled that the respondents were properly summoned.
- The subsequent motion for reconsideration was denied by Ferandos
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indicating in the order that the action of Quemada was for the recovery of
real property and real rights. The respondents were instructed to file their
answer.
- De Midgely filed this action with the Supreme Court.
ISSUE/S
WON Judge Ferandos gravely abused his discretion in denying De
Midgelys motion to dismissed based on the lack of jurisdiction over her
person.
HELD
No. The fact that she alleged as a ground for dismissal the lack of earnest
effort to compromise is deemed as abandonment of her special
appearance and as voluntary submission to the courts jurisdiction. When
the appearance is by motion for the purpose of objecting to the jurisdiction
of the court over the person, it must be for the sole and separate purpose
of objecting to the jurisdiction of the court. If the motion is for any other
purpose than to object to the jurisdiction of the court over his person, he
thereby submits himself to the jurisdiction of the court,
- Even if the lower court did not acquire jurisdiction over De Midgely, her
motion to dismiss was properly denied because Quemadas action against
her maybe regarded as a quasi in rem where jurisdiction over the person
of a non-resident defendant is not necessary and where the service of
summons is required only for the purpose of complying with the
requirement of due process. Quasi in rem is an action between parties
where the direct object is to reach and dispose of property owed by the
parties or of some interest therein.
- The SC cited the Perkins case as a precedent. In that case, it ruled that
in a quasi in rem action jurisdiction over a non resident defendant is not
essential. The service of summons by publication is required merely to
satisfy the constitutional requirement of due process. The judgment of the
court would settle the title to the properties and to that extent it partakes
of the nature of judgment in rem. The judgment is confined to the res
(properties) and no personal judgment could be rendered against the non
resident. It should be noted that the civil case filed by Quemada is related
to a testamentary proceeding as it was filed for the purpose of recovering
the properties which in the understanding of Quemada, belonged to the
estate of the Late Pastor, Sr. and which were held by De Midgely and her
brother.
Disposition
Petition is dismissed
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Still, the publication in the Manila Evening Post was defective as there
was no showing that copies of the summons and the amended complaint
were duly served at the defendant's last know correct address.
-The Court is not inclined to dismiss the case for non-compliance of
private respondent to serve the amended complaint to Abel at his Antipolo
address as there is prima facie justification for extraterritorial service of
summons, and transmission of copies of the summons to the wrong
address is a matter which the TC can more readily remedy. Even if Abel is
declared in default, his interest can be duly represented by the nondefaulting defendant since a common cause of action is involved.
Disposition Petition is granted
Prof. Victoria A.
63
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SEPARATE OPINIONS
Sarmiento, J. [concurring and dissenting]
-service of summons to the wrong last known address is a defect which
cannot justify an order of default. Assuming default were proper, it will not
preclude petitioner from presenting her own evidence.
-However, as to extrajudicial service of summons to a nonresident alien, it
is only valid when effected in the territory in which the absent defendant
may be found. Sec. 17 was in part, taken from Sections 398 and 399 of
Act. 190, which in turn were an adoption of the Code of Civil Procedure of
California which states that personal service outside the state must be
named and designated in the publication as most likely to give notice to
the person to be served. Publication in the Phils. is not likely to provide
notice to a US resident.
-As to Banco Espanol and De Midgely: although the court acquired
jurisdiction over the res, the res belongs to the defendant, and as such he
reserves the right to be heard when his possessions are in peril. Although
the court cannot award money by way of relief, judgment condemning the
res would yield the same result, that is, liability against the defendant. This
would lead to the fundamental injustice of trial in absentia, especially
considering the increase in immigrant Filipinos.
6. By Publication
-MODE OF SERVICE UPON CERTAIN
DEFENDANTS
1. Upon domestic private juridical
entity
PALUWAGAN NG BAYAN SAVINGS BANK vs. KING
172 SCRA 131
GANCAYCO; April 12, 1989
NATURE
Petition for certiorari
FACTS
ISSUE
WON private respondents were properly served with summons
HELD
NO.
Ratio Although private respondents were sued in their capacity as
directors and officers of MFC, they are, nevertheless, being held
personally liable for the obligation subject of the litigation under the
complaint filed by petitioner. Hence, the rule on personal service of
summons must be observed in that summons must be served personally
on private respondents or, if they refuse to receive the same, by tendering
it to them.
It is only when the defendant cannot be served personally within a
reasonable time that substituted service may be resorted to. The
impossibility of prompt service should be shown by stating the efforts
made to find the defendant personally and the fact that such efforts failed.
This statement should be made in the proof of service. This is necessary
2. Upon
Entity
Foreign
Private
Juridical
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ISSUE/S
1. WON Court can acquire jurisdiction over the persons of the accused
provided that they are domiciled beyond the territorial jurisdiction of the
Philippine Government
2. WON petitioner has been 'doing business in the Philippines' so that the
service of summons upon its agent in the Philippines vested the CFI of
Manila with jurisdiction.
HELD
1. Yes. While it is true the site of work is Identified as Wake Island, it is
equally true the place of hire is established in Manila. Moreover, what is
important is the fact that the contract of employment between the parties
litigant was shown to have been originally executed and subsequently
renewed in Manila, as asserted by petitioner and not denied by
respondents. Hence, any dispute arising therefrom should necessarily be
determined in the place or venue where it was contracted.
2.
the petitioner may be considered as doing busuness un the Philippines
within the the scope of Section 14, Rule 14 of the ROC
in compliance with law, the petitioner had to appoint Jaime V. Catuira, as
agent for FMC with authority to execute Employment Contracts and
receive, in behalf of that corporation, legal services from and be bound by
processes of the Philippine Courts of Justice, for as long as he remains an
employee of FMC. It is a fact that when the summons for the petitioner
was served on Jaime V. Catuira he was still in the employ of the FMC. Mr.
Catuira was a on officer representing petitioner in the Philippines.
Aetna Casualty & Curety Company v Pacific Star Line WON the plaintiff
appellant has been doing business in the Philippines, considering the fact
that it has no license to transact business in the Philippines as a foreign
corporation. The object of Sections 68 and 69 of the Corporation Law was
not to prevent the foreign corporation from performing single acts, but to
prevent it from acquiring a domicile for the purpose of business without
taking the steps necessary to render it amenable to suit in the local courts.
It was never the purpose of the Legislature to exclude a foreign
corporation which happens to obtain an isolated order for business from
the Philippines, from securing redress in the Philippine courts (Marshall
Co. vs. Elser & Co., 46 Phil 70,75).
if a foreign corporation, not engaged in business in the Philippines, is not
banned from seeking redress from courts in the Philippines, a fortiori, that
4.
Upon
Defendant
whose
identity/whereabouts unknown
BALTAZAR VS CA (GOOD EARTH ENTERPRISES)
G.R. No. 78728
FELICIANO; December 8, 1988
Nature
Petition for review on certiorari to annul CA decision
FACTS
- Two parcels of land located in Barrio San Isidro, Paranaque were
adjudicated to Lorenzo Molera pursuant to the decree in a land
registration case by the CFI of Rizal acting as a cadastral court. They
were titled in the name of Lorenzo Molera, under Original Certificate of
Title (OCT) No. 1866. On 15 August 1965, the parcels of land were
acquired by Good Earth from successors-in-interest of Lorenzo Molera.
A transfer of Certificate title was issued in the name of Good Earth.
- On 22 March 1977, Artemio Baltazar instituted Civil Case No. 5552-P
against Good Earth for declaration of ownership and reconveyance
of the parcels of land before the CFI, Rizal. Baltazar traced his
claimed rights from an alleged vast Spanish land grant to one Don
Hermogenes Rodriguez, Governor General of Intramuros, down to a
deed of sale over the subject lots allegedly executed by one Pedro
Asedillo (for whose mother, Baltazar had been a tenant sharing in the
rice harvest from the lots)
- The Deputy Sheriff of the trial court, Mr. Ernesto Pre, received a copy
of the summons and complaint for service on Good Earth at its address
set forth in the complaint 666 Muelle de Binondo, Manila.
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to the suit brought against Good Earth; that the action instituted by
Good Earth was barred by res judicata; and that defendants Galvez,
BGB Development Corporation and Rizaliana Garments, Inc. were
purchasers in good faith and for value.
- CA reversed TCs decision and directed the defendants to reconvey the
parcels of land in question to Good Earth free from all liens and
encumbrances. Hence this Petition for Review instituted by Baltazar
and Galvez.
Prof. Victoria A.
65
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ISSUE
WON the service of summons by publication upon respondent Good Earth
was proper.
HELD
The regular mode of serving summons upon a private domestic
corporation (i.e., a private corporation organized under Philippine law
and hence registered with the Securities and Exchange Commission)
is governed by Section 13 of Rule 14 of the Revised Rules of Court.
The regular mode, in other words, of serving summons upon a private
Philippine corporation is by personal service upon one of the officers of
such corporation identified in Section 13.
For the purpose of receiving service of summons and being bound by
it, a corporation is Identified with its agent or officer who under the rule
is designated to accept service of process. "The corporate power to
receive and act on such service, so far as to make it known to the
corporation, is thus vested in such officer or agent." A strict
compliance with the mode of service is necessary to confer jurisdiction
of the court over a corporation. The purpose is to render it reasonably
certain that the corporation will receive prompt and proper notice in an
action against it or to insure that the summons be served on a
representative so integrated with the corporation that such person will
know what to do with the legal papers served on him.
It is not disputed that Deputy Sheriff Pre did not comply and did not
attempt to comply with the requirement of Section 13 of Rule 14. Since
personal service of summons was clearly not effected upon Good
Earth, we come to the question of whether the substituted service by
publication purported to have been effected by the trial court in Civil
Case No. 5552-P was proper and effective to vest jurisdiction upon
such court over the person of Good Earth. The first point that must
be made in this connection is that the propriety of service of
summons by publication is not dependent upon the technical
characterization of the action being initiated as an action in rem
or quasi in rem. The propriety of service by publication is
dependent, rather, upon compliance with the requirements of the
applicable provisions of the Rules of Court. We note secondly, that
service of summons of publication may be allowed under Rule 14 of
the Revised Rules of Court in three 3 different situations. The first is
the situation of an "unknown defendant" addressed by Section 16 of
Rule 14. The second refers to situations where "extra-territorial service"
is proper, governed by Section 17 of Rule 14. The third situation is that
of a resident of the Philippines who is temporarily out of the Philippines
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ineffective to vest jurisdiction over the person of Good Earth upon the
trial court, and that the judgment there rendered by that court was null
and void. It vested no rights upon Baltazar and imposed no liabilities or
burdens upon Good Earth. We agree with the respondent Court of
Appeals that the trial court in Civil Case No. PQ-7410-P fell into
profound error in not setting aside and annulling the judgment of the
trial court in Civil Case No. 5552-P.
Disposition. WHEREFORE, the Petition for Review is DENIED and the
Decision dated 14 January 1987 of the Court of Appeals in C.A. G.R. CV
No. 00104 is AFFIRMED. Costs against petitioners.
5. Upon others
MOTIONS IN GENERAL
MOTION TO DISMISS UNDER RULE 16
US v. RUIZ
136 SCRA 487
ABAD SANTOS; May 22, 1985
NATURE
Petition to review to set aside certain orders and restrain the respondent
judge from trying Civil Case No. 779-M of the defunct CFI of Rizal.
FACTS
- US had a naval base in Subic, Zambales. The base was one of those
provided in the Military Bases Agreement between the Philippines and the
US.
- US invited the submission of bids for the following projects:
1. Repair fender system, Alava Wharf at the U.S. Naval Station Subic
Bay, Philippines.
2. Repair typhoon damage to NAS Cubi shoreline; repair typhoon
damage to shoreline revetment, NAVBASE Subic; and repair to Leyte
Wharf approach, NAVBASE Subic Bay, Philippines.
- Eligio de Guzman & Co., Inc. responded to the invitation and submitted
bids. US requested it to confirm its price proposals and for the name of its
bonding company. The company complied with the requests.
- The company received a letter which was signed by Dir. Collins,
Contracts Division, Naval Facilities Engineering Command, Southwest
Pacific, Department of the Navy of the United States, who is one of the
petitioners herein. The letter said that the company did not qualify to
receive an award for the projects because of its previous unsatisfactory
performance rating on a repair contract for the sea wall at the boat
landings of the U.S. Naval Station in Subic Bay. The letter further said that
the projects had been awarded to third parties.
- The company sued the US and Messrs. James E. Galloway, William I.
Collins and Robert Gohier all members of the Engineering Command of
the U.S. Navy. The complaint is to order the defendants to allow the
plaintiff to perform the work on the projects and, in the event that specific
performance was no longer possible, to order the defendants to pay
damages. The company also asked for the issuance of a writ of
preliminary injunction to restrain the defendants from entering into
contracts with third parties for work on the projects.
- The defendants entered their special appearance "for the purpose only
of questioning the jurisdiction of this court over the subject matter of the
complaint and the persons of defendants, the subject matter of the
complaint being acts and omissions of the individual defendants as agents
of defendant United States of America, a foreign sovereign which has not
given her consent to this suit or any other suit for the causes of action
asserted in the complaint."
- Defendants filed a motion to dismiss the complaint which included an
opposition to the issuance of the writ of preliminary injunction. The
company opposed the motion. The trial court denied the motion and
issued the writ. The defendants moved twice to reconsider but to no avail.
Hence the instant petition which seeks to restrain perpetually the
proceedings in Civil Case No. 779-M for lack of jurisdiction on the part of
the trial court.
ISSUE
WON trial court has jurisdiction
HELD
NO. The traditional rule of State immunity exempts a State from being
sued in the courts of another State without its consent or waiver. This rule
is a necessary consequence of the principles of independence and
equality of States. But State immunity now extends only to acts jure
imperii.
- The respondent judge recognized the restrictive doctrine of State
immunity when he said in his Order denying the defendants' (now
petitioners) motion: "A distinction should be made between a strictly
governmental function of the sovereign state from its private, proprietary
or non-governmental acts." However, the respondent judge also said: "It is
the Court's considered opinion that entering into a contract for the repair
of wharves or shoreline is certainly not a governmental function altho it
may partake of a public nature or character.
- The restrictive application of State immunity is proper only when the
proceedings arise out of commercial transactions of the foreign sovereign,
its commercial activities or economic affairs. Stated differently, a State
may be said to have descended to the level of an individual and can thus
be deemed to have tacitly given its consent to be sued only when it enters
into business contracts. It does not apply where the contract relates to the
exercise of its sovereign functions. In this case the projects are an integral
part of the naval base which is devoted to the defense of both the United
States and the Philippines, indisputably a function of the government of
the highest order; they are not utilized for nor dedicated to commercial or
business purposes.
- That the correct test for the application of State immunity is not the
conclusion of a contract by a State but the legal nature of the act is shown
in Syquia vs. Lopez, 84 Phil. 312 (1949). In that case the plaintiffs leased
three apartment buildings to the United States of America for the use of its
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- Constant resort by a foreign state or its agents to the doctrine of State
immunity in this jurisdiction impinges unduly upon our sovereignty and
dignity as a nation. Its application will particularly discourage Filipino or
domestic contractors from transacting business and entering into
contracts with United States authorities or facilities in the Philippines whether naval, air or ground forces - because the difficulty, if not
impossibility, of enforcing a validly executed contract and of seeking
judicial remedy in our own courts for breaches of contractual obligation
committed by agents of the United States government, always looms
large, thereby hampering the growth of Filipino enterprises and creating a
virtual monopoly in our own country by United States contractors of
contracts for services or supplies with the various U.S. offices and
agencies operating in the Philippines.
- In the case at bar, the efficacy of the contract between the U.S. Naval
authorities at Subic Bay on one hand, and herein private respondent on
the other, was honored more in the breach than in the compliance. The
opinion of the majority will certainly open the floodgates of more violations
of contractual obligations. American authorities or any foreign government
in the Philippines for that matter, dealing with the citizens of this country,
can conveniently seek protective cover under the majority opinion. The
result is disastrous to the Philippines.
1. WON the CA order setting aside the RTC order, which was
interlocutory, is valid
2. WON the terms of the Charter Party, particularly the provision on
arbitration, binding on the Insurer.
HELD
1. Yes. Generally, an interlocutory order cannot be the subject of a special
civil action on certiorari and prohibition. . However, the case before us
falls under the exception. While a Court Order deferring action on a
motion to dismiss until the trial is interlocutory and cannot be challenged
until final judgment, still, where it clearly appears that the trial Judge or
Court is proceeding in excess or outside of its jurisdiction, the remedy of
prohibition would lie since it would be useless and a waste of time to go
ahead with the proceedings.
2. Yes. A reading of the charter Party and the Bill of Lading shows that the
Insurer is in fact bound to arbitration. Clearly, the Bill of Lading
incorporates by reference the terms of the Charter Party. It is settled law
that the charter may be made part of the contract under which the goods
are carried by an appropriate reference in the Bill of Lading (Wharton
Poor, Charter Parties and Ocean Bills of Lading (5th ed., p. 71). This
should include the provision on arbitration even without a specific
stipulation to that effect. The entire contract must be read together and its
clauses interpreted in relation to one another and not by parts. Moreover,
in cases where a Bill of Lading has been issued by a carrier covering
goods shipped aboard a vessel under a charter party, and the charterer is
also the holder of the bill of lading, "the bill of lading operates as the
receipt for the goods, and as document of title passing-the property of the
goods, but not as varying the contract between the charterer and the
shipowner" (In re Marine Sulphur Queen, 460 F 2d 89, 103 [2d Cir. 1972];
Ministry of Commerce vs. Marine Tankers Corp. 194 F, Supp 161, 163
[S.D.N.Y. 1960]; Greenstone Shipping Co., S.A. vs. Transworld Oil, Ltd.,
588 F Supp [D.El. 1984]). The Bill of Lading becomes, therefore, only a
receipt and not the contract of carriage in a charter of the entire vessel, for
the contract is the Charter Party (Shell Oil Co. vs. MIT Gilds, 790 F 2d
1209, 1212 [5th Cir. 1986]; Home Insurance Co. vs. American Steamship
Agencies, Inc., G.R. No. L-25599, 4 April 1968, 23 SCRA 24), and is the
law between the parties who are bound by its terms and condition
provided that these are not contrary to law, morals, good customs, public
order and public policy (Article 1306, Civil Code).
Disposition
Petition for certiorari is denied and the judgment of the CA is affirmed.
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ISSUES
1. WON CAs dismissal of the petition for certiorari filed by the Balos is
valid
2. WON the failure to allege the nature and extent of plaintiffs title in a
petition for partition is fatal to its cause of action
3. WON the action for judicial partition and accounting has prescribed,
was waived, or was otherwise abandoned
HELD
1. NO, CA should not have dismissed the petition outright as the same
alleges grave abuse of discretion. Instead, it should have proceeded to
determine WON the trial court did commit grave abuse of discretion as
alleged by the Balos. CA having failed in this regard, it behooves upon
this Court to discuss the merits of the petition to put to rest the issues
raised by the petitioners.
Reasoning
- The general rule regarding denial of a motion to dismiss as a basis of a
resort to the extraordinary writ of certiorari is that an order denying a
motion to dismiss is an interlocutory order which neither terminates nor
finally disposes of a case as it leaves something to be done by the court
before the case is finally decided on the merits. As such, the general rule
is that the denial of a motion to dismiss cannot be questioned in a special
civil action for certiorari which is a remedy designed to correct errors of
jurisdiction and not errors of judgment. To justify the grant of the
extraordinary remedy of certiorari, therefore, the denial of the motion to
dismiss must have been tainted with grave abuse of discretion. By grave
abuse of discretion is meant, such capricious and whimsical exercise of
judgment as is equivalent to lack of jurisdiction. The abuse of discretion
must be grave as where the power is exercised in an arbitrary or despotic
manner by reason of passion or personal hostility and must be so patent
and gross as to amount to an evasion of positive duty or to a virtual
refusal to perform the duty enjoined by or to act all in contemplation of law.
- Specific instances whereby the rule admits certain exceptions are
provided as follows: Under certain situations, recourse to certiorari or
mandamus is considered appropriate, i.e., (a) when the trial court issued
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SWAGMAN HOTELS V. CA
G.R. 161135
Davide, Jr., C.J.: April 8, 2005
FACTS:
- Sometime in 1996 and 1997, petitioner Swagman Hotels and Travel,
Inc., through Atty. Leonor L. Infante and Rodney David Hegerty, its
president and vice-president, respectively, obtained from private
respondent Neal B. Christian loans evidenced by three promissory notes
dated 7 August 1996, 14 March 1997, and 14 July 1997. Each of the
promissory notes is in the amount of US$50,000 payable after three years
from its date with an interest of 15% per annum payable every three
months. In a letter dated 16 December 1998, Christian informed the
petitioner corporation that he was terminating the loans and demanded
from the latter payment in the total amount of US$150,000 plus unpaid
interests in the total amount of US$13,500.
- On 2 February 1999, private respondent Christian filed with the Regional
Trial Court of Baguio City, Branch 59, a complaint for a sum of money and
damages against the petitioner corporation, Hegerty, and Atty. Infante.
- The petitioner corporation, together with its president and vice-president,
filed an Answer raising as defenses lack of cause of action and novation
of the principal obligations. According to them, Christian had no cause of
action because the three promissory notes were not yet due and
demandable.
- In due course and after hearing, the trial court rendered a decision on 5
May 2000 declaring the first two promissory notes dated 7 August 1996
and 14 March 1997 as already due and demandable and that the interest
on the loans had been reduced by the parties from 15% to 6% per annum.
The TC reasoned: When the instant case was filed on February 2, 1999,
none of the promissory notes was due and demandable. As of this date
however, the first and the second promissory notes have already
matured. Hence, payment is already due. Under Section 5 of Rule 10 of
the 1997 Rules of Civil Procedure, a complaint which states no cause of
action may be cured by evidence presented without objection. Thus, even
if the plaintiff had no cause of action at the time he filed the instant
complaint, as defendants obligation are not yet due and demandable
then, he may nevertheless recover on the first two promissory notes in
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view of the introduction of evidence showing that the obligations covered
by the two promissory notes are now due and demandable.
maintain an action in court, and the trial court should have therefore
dismissed his complaint.
- Despite its finding that the petitioner corporation did not violate the
modified terms of the three promissory notes and that the payment of the
principal loans were not yet due when the complaint was filed, the trial
court did not dismiss the complaint, citing Section 5, Rule 10 of the 1997
Rules of Civil Procedure, which reads:
GOODYEAR V. SY
G.R. 154554
PANGANIBAN;Nov 9, 2005
Nature
Petition for Review under Rule 45
Facts
In 1983 Goodyear Philippines purchased from Industrial and Transport
Equipment, Inc. an Isuzo JCR 6-Wheeler. the truck was hijacked on April
30, 1986. This hijacking was reported to the Philippine National Police
(PNP) which issued out an alert alarm on the said vehicle as a stolen
one.It was later on recovered also in 1986. Goodyear sold it to Anthony Sy
on September 12, 1996.Sy, in turn, sold it to Jose L. Lee on January 29,
1997.
Lee filed an action for rescission of contract with damages against Sy on
December 4, 1997 because he could not register the vehicle in his name
due to the certification from the PNP Regional Traffic Management Office
in Legazpi City that it was a stolen vehicle and the alarm covering the
same was not lifted. Instead, the PNP in Legazpi City impounded the
vehicle and charged Lee criminally.Sy informed Goodyear.Goodyear
requested on July 10, 1997 the PNP to lift the stolen vehicle alarm status.
This notwithstanding, Goodyear was impleaded as third-party defendant in
the third-party complaint filed by Sy on January 9, 1998.Goodyear filed a
motion to dismiss on March 24, 1998 on the twin grounds that the thirdparty complaint failed to state a cause of action and even if it did, such
cause of action was already extinguished. The Regional Trial Court
[(RTC)] resolved to dismiss the third-party complaint because it does not
expressly show any act or omission committed by the third party
defendant which violates a right of the third party complainant. CA
granted the appeal, holding that that the Third-Party Complaint had stated
a cause of action. First, petitioner did not make good its warranty in the
Deed of Sale: to convey the vehicle to Respondent Anthony Sy free from
all liens, encumbrances and legal impediments. The reported hijacking of
the vehicle was a legal impediment that prevented its subsequent sale.
Second, Respondent Sy had a right to protect and a warranty to enforce,
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while petitioner had the corresponding obligation to honor that warranty.
Goodyear moved for reconsideration, which CA denied.
Issues
WON the third-party complaint states a cause of action against Goodyear
Held
No. The Third-Party Complaint filed by Sy is inadequate, because it did not
allege any act or omission that petitioner had committed in violation of his
right to the subject vehicle.
Reasoning:
A cause of action is a formal statement of the operative facts that give rise
to a remedial right. The question of whether the complaint states a cause
of action is determined by its averments regarding the acts committed by
the defendant. Thus, it must contain a concise statement of the ultimate
or essential facts constituting the plaintiffs cause of action. Failure to
make a sufficient allegation of a cause of action in the complaint warrants
its dismissal.
Elements of a Cause of Action
A cause of action, which is an act or omission by which a party violates
the right of another, has these elements:
1) the legal right of the plaintiff;
2) the correlative obligation of the defendant to respect that legal right;
and
3) an act or omission of the defendant that violates such right.
TEST In determining whether an initiatory pleading states a cause of
action admitting the truth of the facts alleged, can the court render a valid
judgment in accordance with the prayer? To be taken into account are
only the material allegations in the complaint; extraneous facts and
circumstances or other matters aliunde are not considered. The court
may consider -- in addition to the complaint -- the appended annexes or
documents, other pleadings of the plaintiff, or admissions in the records.
In the present case, the third element is missing. The Third-Party Complaint
filed by Sy is inadequate, because it did not allege any act or omission that
petitioner had committed in violation of his right to the subject vehicle. The
Complaint capitalized merely on the fact that the vehicle -- according to the
records of the PNP, which was a stranger to the case -- was a stolen
vehicle. The pleading did not contain sufficient notice of the cause of
action against petitioner.
without even going into the veracity of its material allegations, the
Complaint is insufficient on its face. No connection was laid out between
the owners sale of the vehicle and its impounding by the PNP. That the
police did not lift the alert status did not make petitioner less of an owner.
The Deed of Sale between petitioner and Respondent Sy was attached as
Annex A to the Third-Party Complaint filed by the latter against the former.
The Deed stated that petitioner was the absolute owner of the subject
vehicle. No contrary assertion was made in the Complaint. Hence, the
trial court correctly observed that the Complaint had failed to show that, at
the time of its sale to Respondent Sy, the vehicle belonged to a person
other than petitioner.
A2010
PASCUAL VS PASCUAL
G.R. No 157830
CARPIO-MORALES; November 17, 2005
Prof. Victoria A.
72
Avena
NATURE
Petition for Review on Certiorari challenging the February 10, 2003 Order
of the Regional Trial Court (RTC) of Isabela on motion of herein
respondent Marilou M. Pascual, the complaint filed against her by her
brother-herein petitioner Dante M. Pascual for non-compliance with the
conciliation provision-pre condition to filing of complaint in court under
R.A. 7160 (the Local Government Code)
FACTS
- Petitioner, a permanent resident of the United States of America,
appointed Sagario as his attorney-in-fact by a Special Power of Attorney
(SPA) dated April 10, 2002: (1.) To file a case for the cancellation of
Transfer Certificate of Title No. T-271656 issued in the name of Marilou M.
Pascual as well as the Deed of Sale of Registered Land and/or
Reconveyance at the appropriate court; ( 2.) To collect the monthly
rentals from the tenant; (3). To enter into amicable settlement with Marilou
M. Pascual or any other mode of payment/and/or dispute resolution; (4).
To execute and sign any and all papers, contracts/documents which may
be necessary relative to the above acts.
- Sagario filed on October 14, 2002 (pursuant to the SPA) before the
Isabela RTC at Roxas a complaint for Annulment of Transfer Certificate of
Title No. T-271657 of Isabela and Deed of Absolute Sale of Registered
Land and/or Reconveyance with Damages
- Defendant-herein respondent Marilou M. Pascual filed a Motion to
Dismiss on two grounds one of which was non-compliance with the
requirement under Section 412 of the Local Government Code. She
contends that there is no showing that the dispute was referred to the
barangay court before the case was filed in court. By the assailed Order of
February 10, 2003, Branch 23 of the Isabela RTC at Roxas granted
respondents Motion to Dismiss. It stated that :
-RA 7160 repealing P.D. 1508 otherwise known as the Revised
Katarungang Pambarangay provides under Section 409 All disputes
involving real property or any interest therein shall be brought in the
barangay where the real property or the larger portion thereof is situated.
Hence, the reliance of the plaintiff on Section 408 of R.A. 7160 is
incorrect. When real property or any interest therein is involved, the
dispute shall be filed before the barangay where the property is located,
regardless of the residence of the parties. Besides, it is incorrect to
say that the parties are not residents of the same place, Vira, Roxas,
Isabela. The Attorney-in-fact of the plaintiff in the person of Reymel
R. Sagario is a resident of Vira, Roxas, Isabela, and he substitute
(sic) Dante Pascual by virtue of said Special Power of Attorney.
Hence, said Attorney-in-fact should have brought the dispute before
barangay Vira, Roxas, Isabela, where the property is located. In the case
of Royales vs. Intermediate Appellate Court, Ordinarily, non-compliance
with the condition precedent prescribed by P.D. 1508 could affect the
sufficiency of the plaintiffs cause of action and make his complaint
ISSUE/S
WON the dismissal of the case by the RTC is valid
HELD
NO
Ratio. Petitioner argues that since he, not his attorney-in-fact Sagario, is
the real party in interest, and since he actually resides abroad, the lupon
would have no jurisdiction to pass upon the dispute involving real property,
he citing Agbayani v. Belen
The pertinent provisions of the Local Government Code read: SEC. 408.
Subject Matter for Amicable Settlement; Exception Thereto. The lupon
of each barangay shall have authority to bring together the parties
actually residing in the same city or municipality for amicable settlement
of all disputes except: xxxxx
-In the 1982 case of Tavora v. Veloso the Court held that where the parties
are not actual residents in the same city or municipality or adjoining
barangays, there is no requirement for them to submit their dispute to the
lupon as provided for in Section 6 vis a vis Sections 2 and 3 of P.D. 1508
(Katarungang Pambarangay Law).
-[B]y express statutory inclusion and exclusion, the Lupon shall have no
jurisdiction over disputes where the parties are not actual residents of the
same city or municipality, except where the barangays in which they
actually reside adjoin each other.
Reasoning. To construe the express statutory requirement of actual
residency as applicable to the attorney-in-fact of the party-plaintiff, as
contended by respondent, would abrogate the meaning of a real party in
interest as defined in Section 2 of Rule 3 of the 1997 Rules of Court vis a
vis Section 3 of the same Rule which was earlier quoted but misread and
misunderstood by respondent.
-In fine, since the plaintiff-herein petitioner, the real party in interest , is
not an actual resident of the barangay where the defendant-herein
respondent resides, the local lupon has no jurisdiction over their dispute,
hence, prior referral to it for conciliation is not a pre-condition to its filing in
court.
Dispositive. The petition is granted.
PHILVILLE VS JAVIER
00 SCRA 00
SANDOVAL-GUTIERREZ; Dec. 13, 2007
NATURE
Instant petition for review on certiorari
FACTS
- This case traces its antecedents to a verified complaint filed by
Mercedes Javier, herein respondent with the RTC for damages and
injunction. Impleaded as defendant was PHILVILLE Development and
Housing Corporation (PHILVILLE).
- The complaint alleges that spouses Crisanto (now deceased) and Javier
have been tenant-cultivators of a 5.5 hectare parcel of rice land owned by
Felimon Emperado, a holder of a free patent.
- Sometime in 1977, PHILVILLE proposed to buy the land for conversion
into a housing subdivision. Spouses Javier, PHILVILLE and Emperado
then entered into a Kasulatan ng Pagsasalin at Kusang Loob na
Pagsusuko. Among the terms agreed upon by the parties was that the
Javiers would be given a 2,000 square meter lot as a disturbance
compensation. However, instead of giving them a single lot measuring
2,000 square meters, what they received were 2 separate lots of 1,000
square meters each located far apart. This prompted Mercedes to sue
PHILVILLE for damages.
- In its answer, PHILVILLE specifically denied the allegations in the
complaint and raised the following affirmative and special defenses: (1)
the complaint fails to state a cause of action; (2) it does not allege that the
parties resorted to conciliation proceedings before the barangay; and (3)
plaintiff is estopped from filing the complaint.
- Mercedes filed a motion for leave of court to amend her complaint. In
her attached amended complaint, she alleged that the Kasulatan did not
express the true agreement of the parties and that the sale is void as it
was executed within the 5-year prohibitive period from the issuance of the
free patent.
- The trial court denied the motion, holding that the proposed amendment
is inconsistent with the cause of action in the original complaint; and that
the proposed amendment is the subject of another civil case between the
same parties pending before another branch of the trial court.
- PHILVILLE moved to dismiss the original complaint alleging that the
plaintiff had filed a protest with the Land Management Bureau seeking the
revocation of the free patent issued to Emperado and the reversion of the
land to the public domain.
- the trial court granted PHILVILLEs motion to dismiss
- Mercedes filed a motion for reconsideration of the said Order but it was
denied. This prompted her to interpose an appeal to the CA which
reversed the order and remanded the cast to the trial court.
- PHILVILLE filed a motion for reconsideration but it was denied by the
Appellate Court. Hence, the instant petition for review on certiorari.
ISSUE
A2010
WON the CA erred in reversing the challenged Orders of the trial court
dismissing the complaint of Mercedes.
Prof. Victoria A.
73
Avena
HELD
NO.
Ratio Section 1, Rule 16 of the Revised Rules of Court then applicable
provides:
SEC. 1. Grounds. Within the time for pleading a motion to dismiss
the action may be made on any of the following grounds:
(a) That the court has no jurisdiction over the person of the defendant or
over the subject of the action or suit; (b) That the court has no jurisdiction
over the nature of the action or suit; (c) That venue is improperly laid; (d)
That the plaintiff has no legal capacity to sue; (e) That there is another
action pending between the same parties for the same cause; (f) That the
cause of action is barred by a prior judgment or by statute of limitations;
(g) That the complaint states no cause of action; (h) That the claim or
demand set forth in the plaintiffs pleading has been paid, waived,
abandoned, or otherwise extinguished; (i) That the claim on which the
action or suit is founded is unenforceable under the provisions of the
statute of frauds; (j) The suit is between members of the same family and
no earnest efforts towards a compromise have been made.
In J.M. Tuason & Co., Inc. v. Rafor, this Court interpreted within the
time for pleading to mean within the time to answer.
Reasoning Under Section 1, Rule 11, the time to answer is 15 days after
service of summons upon the defendant. In the instant case, we note that
PHILVILLEs motion to dismiss the complaint was filed after it had filed its
answer.
- The only exceptions to the rule, as correctly pointed out by the CA, are:
(1) where the ground raised is lack of jurisdiction of the court over the
subject matter; (2) where the complaint does not state a cause of action;
(3) prescription; and (4) where the evidence that would constitute a
ground for the dismissal of the complaint was discovered only during the
trial. None of the foregoing grounds is present in PHILVILLEs motion to
dismiss.
Dispostition WHEREFORE, the petition is DENIED.
Sec.410 (B)14 of the Local Govt. Code which mandates that the barangay
chairman shall constitute a pangkat if he fails in his mediation efforts,
should be construed together with Sec.412 15, as well as the circumstances
obtaining and peculiar to the case. On this score, the barangay chairman
or punong barangays is himself the chairman of the lupon under the Local
Govt. Code.
- While no pangkat was constituted, it is not denied that the parties met at
the office of the barangay chairman for possible settlement. Although no
pangkat was formed, there was substantial compliance with the law.
- From the facts, it is undeniable that there was substantial compliance
with P.D.1508 which does not require strict technical compliance with its
procedural requirements. Under the factual antecedents, it cannot be said
that the failure of the parties to appear before the pangkat caused any
prejudice to the case for private respondents considering that they already
refused conciliation before the barangay chairman and, their sham
insistence for a meeting before the pangkat is merely a ploy for further
delay. Technicalities should not be made to desert their true role in our
justice system, and should not be used as obstructions therein.
- The Court noted that although the basic complaint was filed by
petitioners on July 10, 1991, before the effectivity of the Local Govt. Code,
or when P.D. 1508 was still in force, the procedural provisions of the Local
Govt. Code are also applicable to this case. Statutes regulating procedure
in courts are applicable to actions pending and undetermined at the time
of their passage. Procedural laws are retrospective in that sense.
- The Court further reasoned that the failure of Pagba to specifically allege
in their Answer that there was no compliance with the barangay
conciliation procedure constituted a waiver of that defense. Since private
respondents failed to duly raise that issue, their defense founded thereon
is deemed waived, especially since they did not pursue the issue before
the case was set for hearing. Also, the conciliation procedure under P.D.
1508 is not a jurisdictional requirement and noncompliance therewith
cannot affect the jurisdiction which the lower courts had already acquired
over the subject matter and private respondents as defendants therein.
Disposition petition GRANTED. The CA judgment is SET ASIDE. RTC
judgment is REINSTATED.
ISSUE
WON the confrontations before the Barangay Chairman of Naval satisfied
the requirement in P.D. 1508, there was substantial compliance with the
pre-condition (for filing the claim)
HELD
YES.
Ratio Under Sec.412 of the Local Government Code, confrontation before
the Lupon Chairman OR the Pangkat is sufficient compliance with the precondition for filing the case in court.
Reasoning P.D. 1508 has been repealed by codification in the Local
Government Code, which took effect on Jan.1, 1992.
BERBA V. PABLO
474 SCRA 686
CALLEJO, November 11, 2005
14
A2010
Prof. Victoria A.
74
Avena
Nature
Petition for review on certiorari
Facts
- Estela Berba was the owner of a parcel of land located at M. Roxas St,
Sta. Ana, Manila. A house was constructed on the lot, which she leased to
Josephine Pablo and the Heirs of Carlos Palanca sometime in 1976,
covered by a lease contract. Upon its expiration, the lessees continued
leasing the house on a month-to-month basis.
- The lessees failed to pay the rentals due, and by May 1999, their
arrears amounted to P81,818. Berba filed a complaint for eviction and
collection of unpaid rentals only against Pablo in the Office of the Punong
Barangay.
- On June 5, 1999, Berba and Pablo executed an Agreement approved
by the pangkat, wherein: 1) Pablo undertook to pay Berba P3000 every
tenth of the month until fully paid; 2) Pablo will voluntarily leave the leased
premises upon failure to pay; and 3) Pablo will pay P3450 as monthly
rental, on top of the P3000.
- By May 2000, the lessees still had a balance of P71,716. As of May
2001, the total arrearages of the lessees amounted to P135,115.63.
- On May 2, 2001, Berba through counsel wrote to lessees, demanding
payment of the arrearages and to vacate the house within 30 days from
notice, otherwise she will sue them. The lessees ignored the demand.
- On June 21, 2001, Berba filed a complaint against Pablo and the Heirs
of Carlos Palanca in the MTC of Manila for unlawful detainer. Berba,
however, failed to append to her complaint a certification from the Lupon
ng Tagapamayapa that no conciliation or settlement has been reached.
- In their answer, defendants admitted they stopped paying rentals
because of financial distress. By way of special and affirmative defenses,
they averred that the plaintiff had no cause of action against them as she
failed to secure a Certificate to File Action from the Lupon.
- During the pre-trial conference, the parties manifested that despite
earnest efforts, no amicable settlement was reached. They defined the
main issue as WON the plaintiff had a valid cause of action for unlawful
detainer against defendants.
- In her position paper, Berba appended an Agreement dated June 5,
1999 between her and Pablo, which appeared to have been approved by
the Punong Barangay and the members of the Lupon. She also appended
a Statement of Account.
- In their position paper, defendants insisted that the dispute did not go
through the Lupon ng Tagapamayapa prior to the filing of the complaint;
hence Berbas complaint was premature.
- In her reply, the plaintiff alleged that there was no more need for her to
secure a Certificate to File Action because she was a resident of Maligaya
St., Malate, Manila, while the defendants were residing in Barangay 873,
Zone 6 in Sta. Ana Manila.
- MTC ruled in favor of Berba. Defendants appealed to the RTC. On
motion of Berba, RTC issued an order for the execution of the decision
pending appeal. The defendants filed a motion for the recall of the Order,
but before the court could resolve the motion, the Sheriff turned over the
physical possession of the property to Berba on May 20, 2002.
SUSTIGUER V TAMAYO
G.R. No. 29341
FERNAN; AUG 21 1989
NATURE
Appeal to order by CFI
FACTS
-Sustiguer and Aposaga both claimed that they were qualified and entitled
to purchase a subdivision lot in Bacolod for the reason that they possess
the preferential right to buy it from the Govt of Bacolod, being the actual
occupants of the lot.
- they agreed that the award of the lot be given to Aposaga and that a
down payment of 20% of the total cost of the lot shall be made (or else
the lot will be awarded to other applicants)
-Aposaga failed to pay the price. The same lot was sold to Jose Tamayo.
-Sustiguer and Aposaga filed for annulment of the sale on installment and
award of said lot against the Govt of Bacolod and Tamayo, claiming that
Tamayo was not qualified to apply for the award nor to purchase the lot
under Ordinance No. 149. It was also claimed that Tamayo maliciously
filed for unlawful detainer against Aposaga and Sustiguer
- 5 years and 5 months after the complaint was filed, Aposaga filed a
"Motion to Withdraw in Case 6528 (annulment of sale) and Confess
Judgment in Civil Case No. 7512 (unlawful detainer case)" declaring she
is no longer interested in its prosecution. The court allowed her withdrawal
as plaintiff.
- Sustiguer filed a manifestation that the withdrawal of Aposaga as partyplaintiff in Civil Case 6528 and as party defendant in Civil Case 7512 does
not change the status and character of the said cases considering that
she was merely accommodated by her codefendant in occupying the lot in
question.
- Tamayo moved for a preliminary hearing on his affirmative and special
defenses and to dismiss both the complaint and complaint in intervention
(of Villamarzo) invoking Sec 5 of Rule 16. He prayed that he be allowed to
submit a written memorandum in support of his affirmative and special
defenses.
-Tamayo filed his memorandum on the issue WON Sustiguer has any
cause of action against the defendants. Sustiguer filed an opposition to
the motion to dismiss and moved for judgment on the pleadings pursuant
to Sec 1 of Rule 19.
-lower court dismissed the complaint of Sustiguer for lack of cause of
action
-Sustiguer filed MFR and new trial claiming that the dismissal of the
complaint is contrary to law as there was no preliminary hearing and that
she still has a valid cause of action even after the withdrawal of Aposaga
from the case as she was suing in her own right as an awardee entitled to
the award in question. CFI denied.
ISSUE
WON dismissal of complaint was proper
A2010
Prof. Victoria A.
75
Avena
HELD
YES
- Rule 3.2 Every action must be prosecuted and defended in the name of
the real party-in-interest. All persons having an interest in the subject of
the action and in obtaining the relief demanded shall be joined as
plaintiffs. . . ."
-The real party-in-interest is the party who stands to be benefited or
injured by the judgment or the party entitled to the avails of the suit.
"Interest" within the meaning of the rule means material interest, an
interest in issue and to be affected by the decree, as distinguished from
mere interest in the question involved, or a mere incidental interest. As a
general rule, one having no right or interest to protect cannot invoke the
jurisdiction of the court as a party-plaintiff in an action.
- Sustiguer is not entitled to the relief prayed for, she not being the real
party-in-interest. The dismissal of the complaint for lack of cause of action
is proper under the circumstances. It is well-settled that where the plaintiff
is not the real party-in-interest, the ground for the motion to dismiss is lack
of cause of action.
-Sustiguers interest cannot be categorized as material interest within the
meaning of Rule 3.2 considering that it is contingent upon the final
execution of the contract of sale on installment in favor of Aposaga.
-Although the ground of lack of cause of action was pleaded by Tamayo
as one of his special and affirmative defenses in his answer, the said
ground for dismissal of the complaint may be heard preliminarily as if a
motion to dismiss had been filed pursuant to Section 5 of Rule 16 of the
Rules of Court. Tamayo took this procedural step by filing a motion for
preliminary hearing and thereafter to dismiss the complaint and the
complaint in intervention. Records show that instead of a preliminary
hearing, the parties filed their respective memoranda on the issue WON
Sustiguer has a cause of action.
-When the ground for dismissal is that the complaint states no cause of
action, the rule provides that its sufficiency can only be determined by
considering the facts alleged in the complaint and no other, the test being
whether the court can render a valid judgment from the facts set forth.The
rule is that when the motion to dismiss is based on the ground that the
complaint states no cause of action, no evidence may be allowed and the
issue should only be determined in the light of the allegations of the
complaint. Thus it was erroneous for Sustiguer to claim that the lower
court should have conducted a trial on the merits instead of dismissing the
complaint upon a mere motion.
Disposition dismissal of complaint for lack of cause of action as well as
the order denying MFR affirmed
A2010
Prof. Victoria A.
76
Avena
Ratio An action to recover ill-gotten wealth is outside the purview of the
ordinary rules on prescription, as contained in Article 1146 of the Civil
Code.
Reasoning
- The instant action for reconveyance, restitution, and accounting
impleads the Estate/Heirs of Gregorio Licaros for previous acts committed
by the decedent during his lifetime, more particularly for conspiring with
the main defendants to prejudice the Republic.
- Section 15 of Article XI of the 1987 Constitution states that the right of
the State to recover properties unlawfully acquired by public officials or
employees, from them or from their nominees or transferees, shall not be
barred by prescription, laches or estoppel.
- The intent of the constitutional provision presumably lies in the special
attendant circumstances and the primordial state interests involved in
cases of such nature.
Disposition Petition dismissed
TANCUNTIAN V GEMPESAW
00 SCRA 00
CORONA; October 18, 2004
NATURE
Petition for review under Rule 45 for the reversal of the decision and
resolution of the Court of Appeals which affirmed the order of the Regional
Trial Court dismissing an action for cancellation of title and damages for
alleged lack of legal personality of petitioners.
FACTS
- Plaintiffs, Fausto Tancuntian, Macario Tancuntian and Cristina Cayang
are beneficial owners of that parcel of land
- Sometime in May 1994, the plaintiffs discovered that defendants applied
for a free patent and fraudulently and anomalously secured titles on the
portions of the same parcels of land from the Bureau of Lands
- Petitioners prayed for the issuance of a temporary restraining order
and/or writ of preliminary injunction enjoining respondents from selling,
alienating and disposing the subject properties or any portion thereof
during the pendency of the case. They also sought the cancellation and
nullification of all the titles of the subject properties in the names of
respondents as well as the reconveyance thereof to petitioners, plus
damages and attorneys fees.
- Private respondents filed an opposition to the motion for the issuance of
a writ of preliminary injunction on the ground that petitioners had neither
the legal personality nor the authority to institute the proceedings for
cancellation of title.
- Petitioners clarified that they were not asking for the reversion of subject
private land to the public domain, which would have required the
ISSUE
WON the petitioners have legal personality to institute the proceedings.
HELD
YES
- This legal dispute does not involve an action for the reversion of land to
the public domain but one for the cancellation of null and void free patents
over private land.
- Heirs of Ambrocio Kionisala vs. Heirs of Honorio Dacut: An ordinary civil
action for declaration of nullity of free patents and certificates of title is not
the same as an action for reversion. The difference between them lies in
the allegations as to the character of ownership of the realty whose title is
sought to be nullified.
- In an action for reversion, the pertinent allegations in the complaint
would admit State ownership of the disputed land. On the other hand, a
cause of action for declaration of nullity of free patent and certificate of
title would require allegations of the plaintiffs ownership of the contested
lot prior to the issuance of such free patent and certificate of title as well
as the defendants fraud or mistake; as the case may be, in successfully
obtaining these documents of title over the parcel of land claimed by
plaintiff. In such a case, the nullity arises strictly not from the fraud or
deceit but from the fact that the land is beyond the jurisdiction of the
Bureau of Lands to bestow and whatever patent or certificate of title
obtained therefor is consequently void ab initio. The real party in interest
is not the State but the plaintiff who alleges a pre-existing right of
ownership over the parcel of land in question even before the grant of title
to the defendant.
- Petitioners claim continuing ownership over the subject parcels of land
since 1976, as evidenced by OCT No. 0-328 and 0-329 in their names.
This can only mean, according to petitioners, that the free patents and
OCTs issued to respondents in 1990 and 1991 were null and void
because the land was their private property, and as such, could not have
been validly disposed of by the Government. Conformably with our ruling
in Heirs of Ambrocio Kionisala, petitioners are therefore the real party in
interest in this case.
- Furthermore, Rule 3, Section 2 of the 1997 Rules of Civil Procedure
states:
Section 2. Parties in interest - A real party in interest is the party
who stands to be benefited or injured by the judgment in the suit, or
the party entitled to the avails of the suit. Unless otherwise
authorized by law or these Rules, every action must be presented
or defended in the name of the real party in interest.
- Since, petitioners are the real parties in interest under the rules, then
they have the legal personality to sue respondents. The land subject of
the controversy is titled either in their names or that of their predecessorsin-interest. They stand to be benefited or injured by whatever decision the
court may decree. Hence, they are entitled to the opportunity to defend
their titles and present their side of the controversy since their titles date
even earlier than those of the patent holders-respondents.
Disposition Petition GRANTED.
MALLION V ALCANTARA
G.R. No. 141528
A2010
Prof. Victoria A.
77
Avena
NATURE
Petition for review on certiorari under Rule 45, ROC
FACTS
-Oct24,1995: Oscar P. Mallion filed a petition with RTC San Pablo City
seeking a declaration of nullity of his marriage to Editha Alcantara under
Article 36 of the Family Code, citing Alcantaras alleged psychological
incapacity. After trial on the merits, RTC denied the petition upon the
finding that Mallion failed to adduce preponderant evidence to warrant the
grant of the relief he is seeking. CA dismissed the appeal for failure of
Mallion to pay the docket and other lawful fees within the reglementary
period.
-After said decision attained finality, Mallion filed on July 12, 1999 another
petition for declaration of nullity of marriage with RTC San Pablo City, this
time alleging that his marriage with Alcantara was null and void due to the
fact that it was celebrated without a valid marriage license. For her part,
Alcantara filed an answer with a MTD praying for the dismissal of the
petition on the ground of res judicata and forum shopping.
-RTC granted MTD and dismissed the case forforum shopping and
multiplicity of suits. Mallions MFR was also denied. Hence, this petition.
-Mallion argues that while the relief prayed for in the two cases was the
same, that is, the declaration of nullity of his marriage to respondent, the
cause of action in the earlier case was distinct and separate from the
cause of action in the present case because the operative facts upon
which they were based as well as the evidence required to sustain either
were different. Because there is no identity as to the cause of action,
petitioner claims that res judicata does not lie to bar the second petition. In
this connection, petitioner maintains that there was no violation of the rule
on forum shopping or of the rule which proscribes the splitting of a cause
of action.
-Alcantara, in her comment, counters that while the present suit is
anchored on a different ground, it still involves the same issue raised in
the earlier civil case (validity of their marriage) and prays for the same
remedy (declaration of nullity). Respondent thus contends that petitioner
violated the rule on forum shopping. Moreover, respondent asserts that
petitioner violated the rule on multiplicity of suits as the ground he cites in
this petition could have been raised during the trial in the first case.
ISSUE
WON a previous final judgment denying a petition for declaration of nullity
on the ground of psychological incapacity is bar to a subsequent petition
for declaration of nullity on the ground of lack of marriage license
HELD: YES
-Res judicata, defined: a matter adjudged; a thing judicially acted upon
or decided; a thing or matter settled by judgment. It also refers to the rule
that a final judgment or decree on the merits by a court of competent
jurisdiction is conclusive of the rights of the parties or their privies in all
later suits on points and matters determined in the former suit.
A2010
PRESENT CASE
- Twelve (12) years later, private respondents Dinglasan et al. filed a
complaint on JULY 1, 1968 for the recovery of the same parcel of land
(subject-matter of the previous case), on the basis of the decision of the
SC in Philippine Banking Corporation v Lui She. The respondents again
asserted that the sale violated the Constitution. They prayed that they be
declared the legal owners, the land be surrendered, that Lee Bun Ting
receive P6K as restitution for the land, and that they be paid P2K monthly
until the return of the property.
- A motion to dismiss was filed by Lee Bun Ting on the ground of res
judicata, alleging that the issues have definitely been settled in the
Dinglasan case.
- On Oct. 10, 1968 Aligaen of Capiz CFI denied the motion to dismiss. A
motion for reconsideration was filed by defendants. The claimed that in
the case of Philippine Banking Corporation, there is no statement which
would have the effect of reopening and changing previously adjudicated
rights of parties and finally settled cases (meaning there is no express
prohibition against changing previous cases).
- Lee Bun Ting reiterated their defense of res judicata on the basis of the
decision of the SC on June 27, 1956. They prayed that the complaint be
dismissed.
ISSUE
WON the case Rafael Dinglasan, et al. v Lee Bun Ting, et al. could be
relitigated in view of the subsequent decision of the SC in Philippine
Banking Corp. v Lui She
NATURE
Petition for review on certiorari assailing the decision of the CA affirming
the order of dismissal of the RTC
Prof. Victoria A.
78
Avena
HELD
NO.
Ratio It is clear that posterior changes in the doctrine of the SC cannot
retroactively be applied to nullify a prior final ruling in the same proceeding
where the prior adjudication was had, whether civil or criminal.
Reasoning
- Reasons of public policy, judicial orderliness, economy and judicial time
and the interests of litigants, as well as the peace and order of society, all
require that stability be accorded the solemn and final judgments of the
courts or tribunals of competent jurisdiction.
RES JUDICATA
- The doctrine of res judicata applies where, between a pending action
and one which has been finally and definitely settled, there is identity of
parties, subject matter and cause of action. Parties should not be allowed
to litigate the same issue more than once.
Rule 39, Sec. 49(b)
(b) In other cases the judgment or order is, with respect to the matter
directly adjudged or as to any other matter that could have been raised in
relation thereto, conclusive between the parties and their successors in
interest by the title subsequent to the commencement of the action or
special proceeding, litigating for the same title and in the same capacity.
(c) In any other litigation between the same parties or their successors-ininterest, that only is deemed to have been adjudged in a former judgment
which appears upon it face to have been so adjudged, or was actually and
necessarily included therein or necessary thereto.
DISPOSITION
Certiorari is granted, with costs against private respondents.
VILLARINO v AVILA
G.R. No. 131191
TINGA, J.; September 26, 2006
FACTS
- Petitioners spouses Villarino filed an action for Annulment of Title,
Reconveyance, Damages and Injunction against respondents the Avilas
and the Provincial Sheriff. Petitioners opposed the application of the Avilas
for the registration of Lot No. 967 on the ground that a portion of Lot No.
967 encroached upon Lot No. 968 to the extent of 2,146 square meters.
Lot No. 968 is the adjacent property belonging to petitioners. In their
complaint, petitioners averred that the registration of Lot No. 967 was
based on an erroneous survey and technical description. They sought the
reconveyance of the disputed area and the cancellation of the OCT to
reflect the consequent reduction in area. The Avilas moved for the
dismissal of the case on the ground of res judicata. After a preliminary
hearing, the RTC issued the order dismissing the case.
- Petitioners elevated the matter to the CA, contending that the RTC erred
in dismissing the case based on res judicata. The CA upheld the
incontrovertibility of the decree of registration one year after its issuance.
It also debunked the erroneous survey and technical description foisted by
petitioners as not the fraud contemplated under Sec. 53 of PD 1529,
which allows the reconveyance of fraudulently registered land.
- Petitioners filed the instant petition. They argued that the judgment in the
land registration case is not yet final because the aggrieved party can still
avail of the remedy of reconveyance and recovery of damages, and that
the trial court therein had no jurisdiction over the disputed area since it
had already been covered by an OCT issued in the name of petitioners.
ISSUES
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- TCs decision became final and executory.
- The Dabons, claiming to have bought the land fr Aristotle, filed before the
CA a petition for annulment of judgment and orders of the TC. They
alleged that the decision was void for lack of jurisdiction over their persons
as the real parties in interest. CA issued resolution restraining TC from
implementing its decision. Hence, this petition by Gonzales.
ISSUE/S
1. WON there was basis to annul the decision of the TC.
2. WON the Dabons can seek annulment of the TC judgment
HELD
1. YES.
Ratio
An action should be brought against the real party in interest. The real
party in interest is the one who would be benefited or injured by the
judgment or is the one entitled to the avails of the suit.
Reasoning
- Named petitioners herein are Carillo (Presiding Judge), Guyot (Clerk of
Court), Senoy (Deputy Sheriff), Risonar (Registrar of Deeds), and
Gonzales. Carillo, Guyot, Senoy and Risonar are not interested parties
because they would not benefit from the affirmative reliefs sought. Only
Gonzales remains as genuine party-petitioner in this case.
- Gonzales insists that the Dabons have no right to seek annulment of the
TCs judgment bec theyre not parties to the specific performance case.
But the Dabons insist that they are parties in interest bec they are buyers,
owners and possessors of the contested land.
- The specific performance case brought by Gonzales to the TC named
Priscilla Manio and husband as defendants. However, the lot is owned by
Aristotle, their son. Priscilla had no interest on the lot and can have no
interest in the judgment of the TC. Failure to implead Aristotle Manio
renders the proceedings in the specific performance case null and void.
2. YES.
Ratio
A person need not be a party to the judgment sought to be annulled.
What is essential is that he can prove that the judgment was obtained by
fraud and he would be adversely affected thereby.
Reasoning
Although the Dabons are not parties to the specific performance case, any
finding of extrinsic fraud would adversely affect their ownership and could
be basis of annulment of judgment. In this case, Gonzales knew of the
sale of lot by Aristotle Manio to the Dabons yet Gonzales did not include
the Dabons in her petition. This is extrinsic fraud.
Disposition Petition is denied.
REGALA V SANDIGANBAYAN
G.R. No. 10538
KAPUNAN; September 20, 1996
NATURE
Special civil action for certiorari
FACTS
- This is an offshoot of the complaint before the Sandiganbayan through
the PCGG against Eduardo Cojuangco Jr. for recovery of alleged ill-gotten
wealth including shares of stocks in certain corporations.
- ACCRA Law Firm performs legal svcs incl. organization and acquisition
of business associations/orgs. Sometimes, members of the firm act as
incorporators or stockholders. They acquire info relative to assets of
clients and their personal/biz circumstances. In this case, ACCRA lawyers
acted as nominees-stockholders of said corps involved in sequestration
proceedings.
- PCGG filed Third Amended Complaint w/c excluded respondent Raul
Roco because he promised to reveal identity of principal/s for whom he
acted as nominee-stockholder
- ACCRA lawyers said it was in furtherance of legit lawyering and they
became holders of shares of stock only as incorporating or acquiring
stockholders, and as such, they do not claim any proprietary interest in
said shares.
- Petitioner Paraja Hayudini, who separated fr ACCRA, filed a separate
answer.
- ACCRA lawyers filed a counter-motion that PCGG also exclude them as
parties-defendant as it did to Roco. PCGG set conditions for exclusion of
the petitioners:
- disclosure of identity of clients
- submission of docs substantiating lawyer-client relationship
- submission of deeds of assignments petitioners executed in favor
of its clients covering their respective shareholdings.
- PCGG presented supposed proof to substantiate compliance by Roco of
the said conditions.
- Sandiganbayan denied exclusion of petitioners fr the PCGG case. That
denial is now being questioned.
ISSUE/S
1. WON there is a cause of action against the defendants
2. WON lawyer-client confidentiality applies in this case
3. WON Roco and the ACCRA lawyers are similarly situated, thus,
making the denial of the ACCRA lawyers exclusion from the PCGG case
a violation of equal protection clause.
HELD
1. NO.
Reasoning
- It is quite apparent that petitioners were impleaded by the PCGG as codefendants to force them to disclose the identity of their clients. Clearly,
respondent PCGG is not after petitioners but the bigger fish as they say
in street parlance. This ploy is quite clear from the PCGGs willingness to
cut a deal with petitioners -- the names of their clients in exchange for
exclusion from the complaint
- It would seem that petitioners are merely standing in for their clients as
defendants in the complaint. Petitioners are being prosecuted solely on
the basis of activities and services performed in the course of their duties
as lawyers. Quite obviously, petitioners inclusion as co-defendants in the
complaint is merely being used as leverage to compel them to name their
clients and consequently to enable the PCGG to nail these clients. Such
being the case, respondent PCGG has no valid cause of action as against
petitioners and should exclude them from the Third Amended Complaint
2. Yes
Ratio
- The right to counsel of an accused is also involved in this issue. If client
were made to choose bet legal representation w/o effective
communication and disclosure and legal representation w/ all his secrets
revealed then he might be compelled to stay away from the judicial
system or lose right to counsel.
Reasoning
- GENERAL RULE:
- Court has right to know that client whose privileged info is sought
to be protected is flesh and blood.
- Privilege exists only after atty-client relationship has been
established. It does not attach until there is a client.
- Privilege generally pertains to subject matter of the relationship.
- Due process requires that the opposing party should, as a general
rule, know his adversary.
- EXCEPTIONS
- Client identity is privileged where a strong probability exists that
revealing clients name would implicate that client in the very activity
for w/c he sought the lawyers advice.
- It is also privileged where disclosure would open the client to civil
liability.
- It is also privileged when govts lawyers have no case against an
attys client unless, by revealing the clients name, the said name
would furnish the only link that would be necessary to convict an
individual of a crime.
- Apart fr the exceptions above, other situations could qualify as
exceptions. Info relating to the identity of client may fall w/in privilege
when clients name itself has independent significance such that
disclosure would reveal client confidence.
- The instant case FALLS UNDER AT LEAST 2 EXCEPTIONS. First,
disclosure would lead to establish the clients connection w/ the very fact
in issue. Also, the link bet the offense and the legal advice/svc was duly
established by no less than the PCGG itself. Petitioners have a legitimate
fear that identifying their clients would implicate them. Revelation of the
name would provide the link for prosecution to build its case, where none
otherwise exists.
- It is diff when the client consults atty for illicit purposes, seeking advice
on how to around the law. In this case, a client thinks he might have
previously committed something illegal and consults atty abt it.
- Court is trying to avoid fishing expedition by the prosecution. After all,
there are alternative sources of info available to prosecutor w/c does not
depend on utilizing a defendants counsel as convenient and readily
available source of info.
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Prof. Victoria A.
80
Avena
3. Yes
- Respondents failed to show that Roco actually revealed the identity of
his clients. PCGG shld show that Roco was treated as a species apart fr
the ACCRA lawyers on basis of classification w/c made substantial
distinctions based on real differences. No such substantial distinctions
exist.
Disposition Decision of the Sandiganbayan annulled and set aside
DISMISSAL BY CLAIMANT
GOJO V GOYALA
(supra)
NATURE
Appeal from a decision of the CFI of Sorsogon
FACTS
-Appellee Segundo Goyala, with his now deceased wife Antonina sold to
Gojo a 2.5 hectare parcel of agricultural land for P750 by a Deed of Pacto
de Retro Sale, the repurchase to be made within one year, as stated in
the deed. The deed also indicates that the vendee paid another P100 in
addition to the purchase price. 10 years after the execution of said
document, Gojo filed a case with the CFI against Goyala by way of a
petition for consolidation of ownership of said land. Gojo alleged that the
period for repurchasing had expired and ownership had become
consolidated in him and that for purposes of recording the consolidation in
the Registry of Property, it was necessary that a judicial order be issued to
that effect.
-Goyala filed an answer to the petition, alleging that they had obtained a
cash loan of P810 from Gojo payable w/in one year w/o interest and that
to guarantee payment, Goyala executed a mortgage in favor of the
petitioner on the parcel of land in question. Hence, although the deed was
executed in the form of a pacto de retro sale, the true intention of the
parties was for it to be a mere mortgage to secure payment. Goyala
further claimed that he and his wife attempted to pay the debt but
petitioner refused to receive the sum and cancel the mortgage. By way of
counterclaim, Goyala prayed that petitioner receive the P810 and that the
document of mortgage be declared so, and not a pacto de retro sale. He
further prayed for P1800 per annum until the final termination of the case
for the fruits of said property and in the case that the instrument be
deemed a true pacto de retro sale, that petitioner be ordered to execute a
deed of resale in favor of respondents in accordance with A1606CC.
-Counsel for Goyala filed a manifestation informing the TC that the named
defendant, Antonina, had died, prompting the TC to issue an order
requiring counsel for the plaintiff to submit an amended Complaint
substituting Antonina with one of her successors in interest as party
ISSUES
WON TC erred in declaring plaintiff in default with respect to defendants
counterclaim
HELD
YES. The appellant contends that there is no occasion for the TC to
declare him in default in respect of appellees counterclaim as said
counterclaim falls within the category of compulsory counterclaim which
does not call for an independent answer as the complaint already denies
its material allegations. It is now settled that a plaintiff who fails or chooses
not to answer a compulsory counterclaim may not be declared in default,
principally because the issues raised in the counterclaim are deemed
automatically joined by the allegations of the complaint.
-While it is true that under Sec. 3 of Rule 17, a complaint may be
dismissed for failure to prosecute if the plaintiff fails to comply with an
order of the court, said provision cannot apply when the order ignored is a
void one, as in this case. (As in Sec 20 of Rule 3, the death of the
defendant in a contractual money claim does dismiss such action for
recovery, but will be allowed to continue until final judgment is entered.
Favorable judgment obtained by the plaintiff shall be enforced in the
manner provided in these Rules for prosecuting claims against the estate
of a deceased person. In Barrameda vs Barbara, the SC held that an
order to amend the complaint, before the proper substitution of parties as
directed by Sec. 17, Rule 3 (Sec. 16, new law), is void and imposes upon
the plaintiff no duty to comply therewith to the end that an order dismissing
the said complaint, for such non-compliance, would similarly be void. It
was further held in Ferriera vs Gonzales that the continuance of a
proceeding during the pendency of which a party thereto dies, without
such party having been validly substituted in accordance with the rules,
amounts to lack of jurisdiction.
WHEREFORE, the decision appealed from is set aside
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petitioner a fax message via JRS Express, advising it that they had filed a
Motion to Strike Off from the records the Notice to Take Deposition; and
asking it not to proceed until the RTC would have resolved the Motion, a
copy of which it eventually received later in the day, at 3:10 p.m. On
January 29, 2002, separate Notices were sent by Atty. Nazareno to Attys.
Mario and Peligro, as witnesses, for them to examine the transcript of their
testimonies. On the same date, Atty. Nazareno filed via registered mail a
Submission to the RTC attaching (1) a Certification that the witnesses had
been present and duly sworn to by her; (2) a transcript bearing their
signatures, attesting that it was a true record of their testimonies; (3) a
copy of the Notice to Take Deposition delivered to her; and (4) a copy of
the Notice signed by respondents counsel. Hearing on the Motion to
Quash, petitioner submitted its (1) Formal Offer of Exhibits, together with
the documentary exhibits marked during the deposition-taking; (2) Reply
to respondents Vigorous Opposition to the Motion to Quash; and (3)
Opposition ad Cautelam to respondents Motion to Strike Off the Notice to
Take Deposition. Meanwhile CA issued a Resolution denying the Petition
for Prohibition. Petitioner received a copy of the RTCs Resolution dated
February 21, 2002, denying the Motion to Quash, it received a copy of
respondents Motion to Set Auction Sale of Defendants Levied Properties.
Petitioner filed with the CA a Petition for Certiorari and Prohibition, seeking
to hold in abeyance the February 21, 2002 RTC Resolution and the
December 4, 2001 Writ of Execution. Petitioner alleged that since it had
not received the Order denying its Motion for New Trial, the period to
appeal had not yet lapsed.[33] It thus concluded that the judgment, not
being final, could not be the subject of a writ of execution.
Ruling of the Court of Appeals = It ruled that petitioner could no longer
avail itself of a deposition under Rule 23 of Rules of Court, since trial had
already been terminated. The appellate court also opined that the alleged
error committed by the trial court -- when the latter disregarded two
witnesses oral depositions -- was an error of judgment not reviewable by
certiorari or prohibition. Finally, it ruled that between the denial of a lawyer
and the certification of a postmaster, the latter would prevail.
Prof. Victoria A.
81
Avena
ISSUES
(1) whether petitioner received the Order denying its timely filed Motion for
New Trial;
(2) whether the taking of oral depositions was proper under the
circumstances.
HELD
1. No. It is readily apparent that petitioner is raising factual issues that this
Court does not review. A motion for new trial may be filed on the grounds
of (1) fraud, accident, mistake or excusable negligence that could not
have been guarded against by ordinary prudence, and by reason of which
the aggrieved partys rights have probably been impaired; or (2) newly
discovered evidence that, with reasonable diligence, the aggrieved party
could not have discovered and produced at the trial; and that, if
presented, would probably alter the result. In its Omnibus Motion for New
Trial, petitioner argued that its counsel Atty. Mario was sick, a fact that
allegedly constituted excusable negligence for his failure to appear at the
August 8, 2000 pretrial. With regard to Atty. Rogelio Fernandez, the
presentation of evidence. The Rules of Court does not prohibit the filing of
a motion for a new trial despite the availability of a motion for
reconsideration. But the failure to file the latter motion -- without due
cause -- is a factor in determining whether to apply the liberality rule in
lifting an order that allowed the ex parte presentation of evidence. In its
motions and petitions filed with this Court and the lower courts, petitioner
did not explain why it had failed to file a motion for reconsideration.
The lapse of time -- from the August 8, 2000 pretrial to the September 5,
2000 ex parte presentation of evidence, and until the June 19, 2001
promulgation of the Decision-- shows the negligence of petitioner and its
counsels. Prior to the trial courts resolution of the case, it had ample
opportunity to challenge the Order allowing the ex parte presentation of
evidence. Too late was the challenge that it made after the Decision had
already been rendered.
-In addition to the foregoing facts, petitioner fails to convince us that it has
not received the trial courts Order denying its Motion for New Trial. There
is a disputable presumption that official duties have been regularly
performed. On this basis, we have ruled that the postmasters certification
prevails over the mere denial of a lawyer. This rule is applicable here.
Petitioner has failed to establish its non-receipt of the trial courts Order
denying its Motion for New Trial. This Court notes the trial courts finding
that petitioner received a copy of respondents September 24, 2001
Motion for Execution and November 21, 2001 Motion for Early Resolution,
as well as the trial courts September 28, 2001 Order submitting the
Motion for Execution for resolution. Given these unrebutted facts, it is
unbelievable that petitioner did not know that a ruling on the Motion for
New Trial had already been issued. At the very least, the Motions filed by
respondents should have alerted it of such issuance. Otherwise, it could
have opposed their Motion for Execution by requesting the RTC to resolve
the Motion for New Trial; or the trial court could have been informed by
petitioner of the latters non-receipt of the Order resolving respondents
Motion.
2. No. A deposition may be taken with leave of court after jurisdiction has
been obtained over any defendant or over property that is the subject of
the action; or, without such leave, after an answer has been served.
Deposition is chiefly a mode of discovery, the primary function of which is
to supplement the pleadings for the purpose of disclosing the real points
of dispute between the parties and affording an adequate factual basis
during the preparation for trial. The liberty of a party to avail itself of this
procedure, as an attribute of discovery, is "well-nigh unrestricted if the
matters inquired into are otherwise relevant and not privileged, and the
inquiry is made in good faith and within the bounds of the law."
Limitations would arise, though, if the examination is conducted in bad
faith; or in such a manner as to annoy, embarrass, or oppress the person
who is the subject of the inquiry; or when the inquiry touches upon the
irrelevant or encroaches upon the recognized domains of privilege.
As a mode of discovery resorted to before trial, deposition has
advantages, as follows:
-1. It is of great assistance in ascertaining the truth and in checking and
preventing perjury. x x x 2. It is an effective means of detecting and
exposing false, fraudulent, and sham claims and defenses. 3. It makes
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82
Avena
PAREDES V VERANO
G.R. No.164375
TINGA; October 12, 2006
NATURE
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evidence ex parte. CA noted that Baybay had made it clear that he would
never enter into any amicable settlement without the advice of his
counsel.
- CA cited Sps. Ampeloquio, Sr. v. CA where the Court held that if every
error committed by RTC were to be a proper object of review by certiorari,
then trial would never come to an end and the appellate court dockets
would be clogged with petitions challenging every interlocutory order of
the TC. It concluded that the acts of Judge Kapili did not constitute grave
abuse of discretion equivalent to lack of jurisdiction.
Prof. Victoria A.
83
Avena
ISSUE
WON the absence of the counsel for defendants at the pre-trial, with all
defendants themselves present, is a ground to declare defendants in
default and to authorize plaintiffs to present evidence ex parte.
HELD
NO
Ratio The absence of counsel for defendants at pre-trial does not ipso
facto authorize the judge to declare the defendant as in default and order
the presentation of evidence ex parte. It bears stressing that nothing in the
Rules of Court sanctions the presentation of evidence ex parte upon
instances when counsel for defendant is absent during pre-trial. The Rules
do not countenance stringent construction at the expense of justice and
equity
Reasoning
- The order of RTC allowing respondents to present evidence ex parte
was undoubtedly to the detriment of petitioners. Since the RTC would only
consider the evidence presented by respondents, and not that of
petitioners, the order strikes at the heart of the case, disallowing as it does
any meaningful defense petitioners could have posed. A judgment of
default against a defendant who failed to attend pre-trial, or even any
defendant who failed to file an answer, implies a waiver only of their right
to be heard and to present evidence to support their allegations but not all
their other rights.
- Nothing in the ROC authorizes a trial judge to allow the plaintiff to
present evidence ex parte on account of the absence during pre-trial of
the counsel for defendant. In Rule 18, Sect. 4 imposes the duty on
litigating parties and their respective counsel during pre-trial. The
provision also provides for the instances where the non-appearance of a
party may be excused. Nothing, however, in Sec. 4 provides for a sanction
should the parties or their respective counsel be absent during pre-trial.
Instead, the penalty is provided for in Sec. 5. Notably, what Section 5
penalizes is the failure to appear of either the plaintiff or the defendant,
and not their respective counsel.
-The Court also cited cases and discussed why although they have similar
facts are inapplicable or do not constitute a precedent to the instant case.
These cases are: UCPB v. Magpay, Jonathan Landoil International Co. v.
Mangudadat, SSS v. Chaves, Africa v. IAC. (See original)
- Due process dictates that petitioners be deprived of their right to be
heard and to present evidence to support their allegations if, and only if,
there exists sufficient basis in fact and in law to do so. There being a
manifest lack of such basis in this case, petitioners would be unjustly
COURSE OF TRIAL
1. trial proper
2. kinds of trial
a. consolidated/ separate trial
SPS. YU V MAGNO CONSTRUCTION
G.R. No. 138701-02
GARCIA; October 17, 2006
NATURE
Petition for review on certiorari
FACTS
- The spouses Roque Yu, Sr. and Asuncion Yu are the controlling
stockholders of Leyte Lumber. During his lifetime, Engr. Basilio G. Magno
entered into a verbal agreement with Leyte Lumber through Roque Yu,
Sr., whereby the latter agreed to supply Magno with building materials he
may need in his construction business. The success of Magno's business
gave birth to the Basilio G. Magno Construction and Development
Enterprises, Inc.
- Owing to this fruitful relationship, the two (Roque Yu, Sr. and Magno)
entered into a joint venture, the Great Pacific Construction Company
(GREPAC), with Yu as President and Magno as Vice President. The
relationship between Yu and Magno began in 1975 and continued until
Magno's death on August 21, 1978.
- On January 30, 1979, in the RTC of Tacloban City, the petitioners
instituted two separate complaints for sums of money with damages and
preliminary attachment against the respondents. One was Civil Case No.
5822, raffled to Branch 8 of the court, instituted by Leyte Lumber against
BG Magno and the Estate of Basilio Magno, to collect on the principal
amount of P1,270,134.87 for construction materials claimed to have been
obtained on credit by BG Magno, and the other was Civil Case No. 5823,
raffled to Branch 6, filed by the Yu spouses against BG Magno and the
Estate of Basilio Magno, to collect upon loans and advances
(P3,575,000.00) allegedly made by the spouses to BG Magno.
- On June 17, 1993 the court rendered its decision i favor of the defendant
on both cases. The two separate decisions of even date were penned by
Judge Getulio M. Francisco, the presiding judge of Branch 6 to which only
Civil Case No. 5823 was raffled. The parties did not move for a
reconsideration of the two decisions nor did they call the attention of
Judge Francisco on the absence of an order for consolidation of the two
cases. Instead, they directly interposed their respective appeals to the CA.
- In the CA, the two cases on appeal were consolidated. In Civil Case No.
5822, the appealed decision is MODIFIED by declaring that defendant
B.G. Magno Construction and Development Enterprises, Inc., made an
overpayment in the amount of P631,235.61, instead of P620,239.61 and
ordering plaintiff to return said amount to defendant, with interest of 12%
per annum from promulgation hereof until fully paid, and by DELETING
the award of exemplary damages in the sum of P200,000.00 in favor of
defendan. In Civil Case No. 5823, the appealed decision is REVERSED
and SET ASIDE. Accordingly, defendant B.G. Magno Construction and
Development Enterprises, Inc. is ordered to pay plaintiffs the sum of
P625,000.00, with 12% interest per annum from promulgation hereof until
fully paid, and the further sum of P50,000.00 by way of attorney's fees,
plus costs of suit.
ISSUE
WON Branch 6 had jurisdiction to decide Civil Case No. 5822
pending in Branch 8 in the absence of a motion or order of
consolidation of the two cases
HELD
YES
- There was nothing irregular in the procedure taken. The records show
that there appears to have been a previous agreement to either transfer or
consolidate the two cases for decision by the presiding judge of Branch 6.
- Indeed, when the respondents filed a Motion to Lift, Dissolve and Quash
the Writs of Attachment with Branch 6 on January 20, 1993, the caption
thereof indicated the docket numbers of both cases. Likewise, on October
29, 1993, when the petitioners' new counsel entered his Formal
Appearance, in the caption thereof was also written the docket numbers of
both cases. Petitioners' previous counsel of longstanding (whose
representation dates back to the filing of the two complaints in 1979) filed
his Motion to Withdraw as Counsel on October 30, 1993, and the caption
thereof similarly indicated the docket numbers of both cases. Subsequent
orders of the court which emanated from Branch 6 also bear, in the
caption thereof, the titles and docket numbers of both cases. In other
words, as early as six months prior to the promulgation of Judge
Franciscos decisions in the two cases, there appears to have been a
transfer or consolidation of said cases in Branch 6 and the parties knew of
it, albeit the actual date when the two cases were consolidated or
transferred does not appear on record. Nonetheless, the fact remains that
no opposition or objection in any manner was registered by either of the
parties to the same, thereby evincing their consent thereto. It is, therefore,
already too late in the day for the petitioners to question the competence
of Judge Francisco to render the separate decisions in the two cases.
Petitioners may not now question the transfer or consolidation of the two
cases on appeal, for they knew of it and did not question the same in the
court below. They may not now make a total turn-around and adopt a
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the most perfect opportunity for the powers of the court to transmute
themselves into concrete acts of justice between the parties before it. The
purpose of such a procedure is not to restrict the jurisdiction of the court
over the subject matter, but to give it effective facility in righteous action. It
may be said in passing that the most salient objection which can be urged
against procedure today is that it so restricts the exercise of the court's
powers by technicalities that part of its authority effective for justice
between the parties is many times an inconsiderable portion of the whole.
The purpose of procedure is not to thwart justice. Its proper aim is to
facilitate the application of justice to the rival claims of contending parties.
It was created not to hinder and delay but to facilitate and promote the
administration of justice. It does not constitute the thing itself which courts
are always striving to secure to litigants. It is designed as the means best
adapted to obtain that thing. In other words, it is a means to an end. It is
the means by which the powers of the court are made effective in just
judgments. When it loses the character of the one and takes on that of the
other the administration of justice becomes incomplete and unsatisfactory
and lays itself open to grave criticism."
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Section 1.
Consolidation. When actions involving a common
question of law or fact are pending before the court, it may order a joint
hearing or trial of any or all the matters in issue in the actions; it may order
all the actions consolidated; and it may make such orders concerning
proceedings therein as may tend to avoid unnecessary costs or delay.
- The obvious purpose of the above rule is to avoid multiplicity of suits, to
guard against oppression and abuse, to prevent delays, to clear
congested dockets, to simplify the work of the trial court; in short the
attainment of justice with the least expense and vexation to the parties
litigants (citing 1 CJS 1342-1343).
- Consolidation of actions is addressed to the sound discretion of the
court, and its action in consolidating will not be disturbed in the absence of
manifest abuse of discretion. In the instant case, respondent judge did not
abuse his discretion in ordering the joint trial of the two cases. There is no
showing that such joint trial would prejudice any substantial right of
petitioner. Neither does the latter question the court's jurisdiction to try and
decide the two cases.
- The ordered consolidation of cases, to our mind, crystallizes into reality
the thinking of our predecessors that:
". . . The whole purpose and object of procedure is to make the powers of
the court fully and completely available for justice. The most perfect
procedure that can be devised is that which gives opportunity for the most
complete and perfect exercise of the powers of the court within the
limitations set by natural justice. It is that one which, in other words, gives
b. trial by commissioners
ANGARA v FEDMAN
G.R. NO. 156822
AUSTRIA-MARTINEZ; October 18, 2004
NATURE: Motion for Reconsideration
FACTS:
- On February 8, 1996, respondent filed a complaint for Accion
Reinvindicatoria and/or Quieting of Title against petitioner before the
Regional Trial Court, Nasugbu, Batangas , claiming to be the rightful
owners of the land currently occupied by petitioner. They even conducted
a relocation survey.
-petitoner on the other hand claimed that he is the lawful owner; the said
parcels of land do not encroach on respondent's property; and assuming
that there is such an encroachment, he nevertheless had acquired title
thereto by virtue of acquisitive prescription
-RTC ordered the constitution of committee of three surveyors composed
of geodetic engineers representing the petitioner, respondent and the
DENR
-On June 22, 2000, the RTC issued subpoena ad testificandum to the
three Geodetic Engineers who composed the Board of Commissioners to
testify in connection with their individual reports. The RTC also reminded
respondent that the case was filed as early as February 8, 1996, the pretrial was conducted on January 20, 1999 and since then respondent has
not even commenced presenting its evidence on the merits.
-On September 27, 2000, the RTC ordered the dismissal of the case due
to the failure of the respondent to prosecute its case for an unreasonable
length of time. However, upon respondent's motion for reconsideration,
the RTC reconsidered the order of dismissal.
-petitioner filed an Omnibus Motion praying that judgment be rendered on
the basis of the commissioners' report and, alternatively, all other persons
who will be adversely affected by the relocation survey be impleaded as
parties
-RTC denied the said Omnibus Motion. The RTC held that according to
respondent there was no joint survey conducted by the commissioners as
ordered by it and as agreed upon by the parties, hence the report of the
commissioners cannot be the basis of the judgment, petitioner filed a
motion for reconsideration which was rejected by the RTC. Petitioner then
filed a petition for certiorari with the CA. this too was rejected. Petitoner
filed a petition for certiorari with the SC. Court denied the petition for
review on certiorari for failure to sufficiently show that the CA committed
any reversible error. Hence, the present Motion for Reconsideration
ISSUE: WON CA erred in rejecting the appeal
HELD: no.
-According to petitioner, this is a "simple case of an alleged
'encroachment' or 'overlapping' of property boundaries." Considering that
the issue involves principally a factual and technical matter for which the
RTC, at the instance of the parties, created a Panel of Commissioners has
done its job and the chairman submitted his report on the basis of his
evaluation of the separate surveys conducted by the members. The RTC,
however, simply ignored the report on the technical and lame excuse that
the Panel of Commissioners did not conduct a "joint survey."
-petitioner submits that the RTC cannot simply ignore the commissioners'
report without considering its merits simply because the parties agreed
that the same is not final and binding. Petitioner argues that the RTC
should have considered the merits of the report and acted on its
recommendation instead of rejecting it outright without any cause or
reason. As to the insistence of respondent that the RTC ordered a "joint
survey", petitioner submits that there is nothing in the order of the RTC
defining or specifying what a "joint" survey is.
-Petitioner reiterates his arguments in the petition that a joint survey, as
understood by respondent, wherein the commissioners literally go out
together, conduct a survey in the presence of one another, and prepare
one report, could not have been contemplated by the RTC since the
commissioners nominated by the parties insisted on two different methods
or approaches for the survey.
-A battle of semantics is principally being waged before this Court.
Petitioner argues that undue emphasis was placed on the words "joint
relocation survey, which literally means one that is conducted physically
together or in the presence of one another." The order constituting the
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panel of commissioners, however, does not define what a joint relocation
survey entails nor does it lay out the steps or procedures in conducting
the same. Petitioner submits that the term "joint survey" does not rule out
a survey that is coordinated and linked together resulting in a joint finding
and recommendation. On the other hand, respondent subscribes to the
pronouncement of the RTC that the record is replete with explicit motion
and orders of the court calling for joint survey.
*issue of certiorari (important to note)
- It must be emphasized that the petition before the CA is a special civil
action for certiorari under Rule 65 of the Rules of Court. Certiorari under
Rule 65 is a remedy narrow in scope and inflexible in character. It can be
invoked only for an error of jurisdiction, that is, one where the act
complained of was issued by the court, without or in excess of jurisdiction,
or with grave abuse of discretion which is tantamount to lack or in excess
of jurisdiction.
-In this case, the assailed orders of the RTC are but resolutions on
incidental matters which do not touch on the merits of the case or put an
end to the proceedings. They are interlocutory orders since there leaves
something else to be done by the RTC with respect to the merits of the
case. Consequently, the Court is perplexed that, in resolving the petition
before it, the Court of Appeals chose to delve into the wisdom and
soundness of the orders of the RTC, overlooking the nature of the petition
before it. The supervisory jurisdiction of the court to issue a certiorari writ
cannot be exercised in order to review the judgment of the lower court as
to its intrinsic correctness, either upon the law or the facts of the case
-Petitioner failed to demonstrate his claim that the RTC acted with grave
abuse of discretion amounting to lack or in excess of its jurisdiction in
denying petitioner's prayer for rendition of judgment based on the
commissioners' report. The Rules of Court clearly provides that the trial
court is not bound by the findings of the commissioners or precluded from
disregarding the same. It may adopt, modify, reject the report or recommit
it with instructions, or require the parties to present further evidence
3. incidents/ processes
a. calendar of cases
b. intervention
HOLIDAY INN V SANDIGANBAYAN
186 SCRA 447
MEDIALDEA: June 8, 1990
NATURE:
Petition for review on certiorari (treated as a special civil action for
certiorari)
FACTS:
- On January 1, 1976, Holiday Inn, Inc. (HII) entered into a management
contract with New Riviera Hotel and Development Co., Inc. (NRHDC) for a
period of ten (10) years. Article 18 of said agreement stipulates:
- On January 1, 1976, NRHDC and HII assigned all their rights under the
above mentioned agreement to petitioner Holiday Inn (Phils.), Inc. (HIP)
- On April 22, 1986, NRHDC was sequestered by the PCGG which
subsequently appointed fiscal agents and/or placed an operating team to
monitor the activities of said corporation.
- Because of numerous controversies and conflicts resulting in
operational problems regarding NRHDC, PCGG and Roberto S.
Benedicto, who is perceived to be the controlling stockholder of the
company, entered into an agreement whereby 2/3 of the members of the
Board of Directors of NRHDC shall be nominees of the PCGG and 1/3
thereof shall be nominees of Mr. Benedicto.
- On July 14, 1986, HIP and NRHDC, as sequestered by PCGG entered
into an agreement (addendum) extending the terms of their January 1,
1976 agreement thereof to an indefinite period "on its existing terms and
conditions" with either party having the right to terminate the agreement
upon six (6) months prior written notice to the other party
- On May 10, 1988, NRHDC served upon HIP a letter advising that the
management agreement shall be terminated six (6) months from said
date. It was latter learned that the letter of termination was brought about
by NRHDCs decision to have New World Hotel Philippines (NWHP)
manage the property in lieu of HIP.
- Contending that there was breach of Article 18 of its original
management agreement with NRHDC, HIP initiated on November 2, 1988
an action for intervention in Sandiganbayan, a sequestration case, and
wherein NRHDC was included as among the firms sequestered, alleged to
be part of the ill-gotten wealth amassed by Roberto S. Benedicto in
conspiracy with former President Ferdinand Marcos.
- The proposed complaint-in-intervention attached to the motion-inintervention questions the termination of the management agreement
without the corresponding prior notice and/or right of first refusal under
Article 18 of the Agreement. Petitioner likewise prayed for recovery of
unpaid management fees under the agreement.
- On November 11, 1988, the Sandiganbayan issued the questioned
Resolution denying HIPs motion for intervention for lack of jurisdiction
since
- HIP has flied the present petition contending that, the Sandiganbayan
has exclusive and original jurisdiction over all cases civil or criminal, and
all incidents arising from incidental to, or related to, such cases
necessarily fall likewise under the Sandiganbayan's exclusive, and
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Dispositive. Dismissed.
ORDONEZ V GUSTILO
192 SCRA 469
PARAS; December 20, 1990
NATURE
Petition for certiorari to review decision and order of RTC Cavite, Br. 16,
Cavite City, Gustilo, J.
FACTS
- Respondent Espiritu filed complaint for specific performance and
damages against respondents Municipality of Rosario, Cavite and Mayor
Enriquez to enforce their agreement contained in a Reclamation Contract.
Plaintiff prays that a portion of the foreshore land of the town be conveyed
to him as assignee of Salinas Devt. Corp. (SADECO), the entity which
reclaimed the land in question. Defendants resisted the claim stating it
was barred by the statute of limitations.
- Herein petitioner, the barangay captain of Tejeros Convention, Rosario,
Cavite, together with 7 others intervened and alleged in their Answer-inIntervention that the area being claimed by Espiritu came about by natural
accretion and that the Reclamation Contract is null and void.
- At the pre-trial conference, where the original parties and intervenors
were present, Espiritu and defendant municipality manifested that they
would submit to a compromise agreement at a latter date.
- On the other hand, intervenors asked that they be allowed to present
evidence to prove their defense.
- The principal litigants submitted to the court their compromise
agreement. TC approved and rendered a decision in accordance
therewith. Yet, intervenors continued to present evidence, regarding their
allegations.
- 2 years later, intervenors filed a motion to set aside the compromise
agreement. Respondent judge denied. Judge Gustilo also terminated the
proceedings and ordered the case to be closed.
ISSUE/S
WON trial court erred in stopping/preventing the intervenors from further
presenting evidence in support of their Answer-in-Interevention.
HELD
1. NO. Intervention is defined as a proceeding in a suit or action by which
a third party is permitted by the court to make himself a party, either
joining plaintiff in claiming what is sought by the complaint, or uniting with
defendant in resisting the claims of plaintiff, or demanding something
adversely to both of them; the act or proceeding by which a third person
becomes a party in a suit pending between the others; the admission, by
leave of court, of a person not an original party to pending legal
proceedings, by which such person becomes a party thereto for the
protection of some right or interest alleged by him to be affected by such
proceedings.
AGULTO v TECSON
G.R. No.145276
CORONA;November 29, 2005
FACTS:
-On August 25, 1997, the respondent William Z. Tecson filed an action for
damages against petitioners Rolando Agulto, Maxima Agulto, Cecille
Tenoria and a certain Maribel Mallari in the RTC of Quezon City. Agulto
filedan answer claiming that Tecson had no cause of action and alleged
malicious prosecution. RTC dismissed Tecsons complaint (failure to
prosecute for an unreasonable length of time). Tecson filed a motion for
reconsideration, which was gracted. Court required the parties to appear
during the pre-trial conference scheduled on January 21, 1999. The pretrial was, however, reset to April 29, 1999.
-During the scheduled pre-trial on April 29, 1999, petitioner Rolando
Agulto and his counsel were informed by an employee of the RTC that the
presiding judge was on leave. Counsel for Agulto suggested that it be rescheduled on June 17. Employee advised petitioners counsel that the
suggested setting was not yet official as it would depend on the calendar
of the court and the counsel of respondent.
-The pre-trial proceeded on June 17, 1999. For failure of petitioners to
appear at the pre-trial and to submit their pre-trial brief, the RTC issued an
order allowing the respondent to present his evidence ex parte
-Petitioners filed a motion for reconsideration of the June 17, 1999 order
of the RTC. They claimed that they were not notified of the pre-trial held
on June 17, 1999. Before the motion could be heard, however, the court
rendered its July 12, 1999 decision in favor of respondent. Petitioners
were ordered to pay respondent moral damages, exemplary damages and
attorneys fees in the aggregate amount of P170,000.
-Petitioners filed a petition for certiorari under Rule 65 of the 1997 Rules of
Civil Procedure with the CA on November 24, 1999. They claimed that the
RTC gravely abused its discretion when it issued the September 24, 1999
order
-CA dismissed the petition. It ruled that the proper remedy was appeal by
writ of error, i.e., ordinary appeal, under Rule 41 of the 1997 Rules of Civil
Procedure, not a petition for certiorari under Rule 65. The CA also held
that the petitioners failed to show that their absence during the scheduled
pre-trial was for a valid cause
-Hence, this petition for review on certiorari under Rule 45 of the Rules of
Court
ISSUE: WON RTC acted with grave abuse of discretion in not considering
Agultos motions for reconsideration regarding the pre-trial.
HELD: YES
-Under the present Section 3, Rule 18 of the 1997 Rules of Civil
Procedure, the notice of pre-trial should be served on counsel. The
counsel served with notice is charged with the duty of notifying the party
he represents. It is only when a party has no counsel that the notice of
pre-trial is required to be served personally on him.
-Thus, the present rule simplifies the procedure in the sense that notice of
pre-trial is served on counsel, and service is made on a party only if he
has no counsel. It does not, however, dispense with notice of pre-trial.
-Thus, sending a notice of pre-trial stating the date, time and place of pretrial is mandatory. Its absence will render the pre-trial and subsequent
proceedings void. Thus, the trial courts order allowing the plaintiff to
present his evidence ex parte without due notice of pre-trial to the
defendant constitutes grave abuse of discretion
-Although the failure of the defendant to file a pre-trial brief has the same
effect as his failure to appear at the pre-trial (this is, the plaintiff may be
allowed to present his evidence ex parte and the court shall render
judgment on the basis thereof), a condition precedent is the service of
notice of pre-trial. Otherwise, the defendant will be groping in the dark as
to when exactly he is supposed to file his pre-trial brief.
-More specifically, under Section 6, Rule 18 of the 1997 Rules of Civil
Procedure, the parties are required to file with the court and serve on the
adverse party, in such manner as shall ensure their receipt thereof at least
three days before the date of the pre-trial, their respective pre-trial briefs.
Clearly, the date of the pre-trial is the reckoning point for the filing of the
pre-trial brief. But without prior notice of pre-trial, the parties cannot
reasonably be expected to know the date of the pre-trial.
c. subpoena
d. Rule 22
UY vs. FIRST METRO INTEGRATED STEEL CORP.
G.R. No. 167245
YNARES-SANTIAGO; September 27, 2006
NATURE: Petition for Review
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(2) YES. Section 9, Rule 37 of the Rules of Court which provides that the
remedy to an order denying a motion for new trial is to appeal the
judgment or final order, must be read in conjunction with Section 1, Rule
41 which provides that no appeal may be taken from an order denying a
new trial or reconsideration. Rule 41, Section 1 further provides that:
where the judgment or final order is not appealable, the aggrieved party
may file an appropriate special civil action under Rule 65. Thus, the filing
by the petitioner of a petition for certiorari with the Court of Appeals from
the denial of the motion for new trial by the trial court is proper.
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ISSUES: (1) WON petitioners motion for new trial was filed out of time;
(2) WON a petition for certiorari is the proper remedy to overturn the
denial of a motion for new trial; (3) WON the motion for new trial should be
granted.
HELD:
(1) NO. A scrutiny of the records discloses that while the Motion for New
Trial was received by the trial court on April 28, 2003, the date on the
Registry Receipt attached to the Affidavit of Service as well as that
stamped on the envelope which contained the copy of the motion, reveals
that it was filed and served by registered mail on April 21, 2003, a
Monday, because April 19, 2003, the last day for filing the same was a
Saturday. Section 1, Rule 22 of the Rules of Court states that if the last
day of the period thus computed falls on a Saturday, a Sunday, or a legal
holiday in the place where the court sits, the time shall not run until the
next working day. Thus, the motion was actually filed on time it having
been filed on April 21, 2003, the next working day, following the last day
for filing which fell on a Saturday.
(3) NO. Section 1, Rule 37 provides that a motion for new trial may be
filed within the period for taking an appeal based, among others, on
excusable negligence. Negligence to be excusable must be one which
ordinary diligence and prudence could not have guarded against. In the
instant case, the negligence of petitioner's counsel in failing to attend the
hearings for the reception of evidence is inexcusable. The trial court
scheduled the hearing for the reception of petitioner's evidence seven
times. The initial hearing set on February 28, 2001 was cancelled because
petitioner allegedly had influenza. The hearings scheduled on April 26,
2001 and May 10, 2001 were cancelled and moved to October 25, 2001
and December 13, 2001. Petitioner was represented by Atty. Carpio, Jr. as
collaborating counsel during the hearing on October 25, 2001 but no
evidence was presented. Instead, the hearing was cancelled. On
December 13, 2001, Atty. Baares, petitioner's new counsel, appeared but
he requested for a resetting. On February 14, 2002, Atty. Baares moved
to postpone the hearing to February 28, 2002 as previously scheduled.
On February 28, 2002, Atty. Baares arrived late. The records disclose
that the hearings were postponed or cancelled without any justification.
However, the trial court accommodated the requests for postponement or
resetting in order to accord petitioner due process. Under the
circumstances, petitioner's counsel's failure to attend the seven scheduled
hearings is without justifiable reason tantamount to inexcusable neglect.
As such, it cannot be a ground for new trial.
In addition, the Rule requires that motions for new trial founded on fraud,
accident, mistake or excusable negligence must be accompanied by
affidavits of merits, i.e., affidavits showing the facts (not mere conclusions
or opinions) constituting the valid cause of action or defense which the
movant may prove in case a new trial is granted, because a new trial
would serve no purpose and would just waste the time of the court as well
as the parties if the complaint is after all groundless or the defense is nil or
ineffective.
Under the Rules, the moving party must show that he has a meritorious
defense. The facts constituting the movant's good and substantial
defense, which he may prove if the petition were granted, must be shown
in the affidavit which should accompany the motion for a new trial.
Petitioner's Affidavit of Merit did not contain clear statements of the facts
constituting a good and valid defense which he might prove if given the
chance to introduce evidence. The allegations that he has a "meritorious
defense" and a "good cause" are mere conclusions which did not provide
the court with any basis for determining the nature and merit of the case.
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