University of the Philippines College of Law

Constitutional Law 1 | Professor Charlemagne Yu

Case Digest
TOPIC: Rule-making > Prohibition Against Diminution of Substantive Rights
DOCTRINE: New Constitution of the Philippines, in Section 5, Article X, provides
that rules promulgated by the Supreme Court should not diminish, increase or
modify substantive rights.
CASE Number (including date): G.R. No. L-46095
November 23, 1977
CASE Name: PNB vs Asuncion (and Fabar)
Ponente: Makasiar, J.
FACTS
PNB granted Fabar credit accommodations etc
Said credit accommodations had an outstanding balance of
P8,449,169.98 as of May 13, 1977.
All of the above credit accommodations are secured by the joint and
several signatures of Jose Ma. Barredo, Carmen B. Borromeo and Tomas L.
Borromeo (private respondents herein) and Manuel H. Barredo
private respondents failed to pay despite repeated demands so PNB
filed a case for collection
Before the case could be decided, Manuel Barredo died
In view of the death of defendant Manuel Barredo, the Court hereby
dismisses this case since the present suit is for a money claim which does not
survive the death of said defendant. - pursuant to Sec 6 Rule 86 of the
Revised Rules of Court
PNB filed motion for reconsideration of the dismissal of the cases
against all the respondents, saying that only Manuel Barredos case should be
dismissed
the Court denied it for lack of meritorious grounds; hence this petition
for certiorari
ISSUES
1.
Whether or not lower court erred in dismissing the motion to
reconsider
HELD (including the Ratio Decidendi)

(1) Yes:
- Section 6, Rule 86 of the Revised Rules of Court reveals that nothing
therein prevents a creditor from proceeding against the surviving solidary
debtor
- Article 1216 of the New Civil Code is the applicable provision in this
matter. Said provision gives the creditor the night to "proceed against
anyone of the solidary debtors or some or all of them
simultaneously.

- Section 6, Rule 86 of the Revised Rules of Court cannot be made to

prevail over Article 1216 of the New Civil Code, the former being merely
procedural, while the latter, substantive
- Moreover, no less than the New Constitution of the Philippines, in
Section 5, Article X, provides that rules promulgated by the Supreme Court
should not diminish, increase or modify substantive rights.

RULING:
WHEREFORE, JUDGMENT IS HEREBY RENDERED MODIFYING THE APPEALED ORDERS
OF RESPONDENT COURT DATED NOVEMBER 29, 1976 AND JANUARY 26, 1977 IN THE
SENSE THAT AS AGAINST THE DECEASED MANUEL H. BARREDO, THE CASE IS
DISMISSED, BUT AS AGAINST ALL THE OTHER SOLIDARY DEBTORS, THE CASE IS
REMANDED TO RESPONDENT COURT FOR FURTHER PROCEEDINGS.