Civil Procedure Digest

JUDICIAL POWER CONSTITUTIONAL PROTECTION PRESCRIBED JURISDICTION i.e. OVER SUBJECT MATTER, BY LAW SINDICO V DIAZ 440 SCRA 50 CARPIO !ORA"#S$ Octo%er 1& 2004
NATURE Petition for revie' on certiorari of a decision of t(e R)C of Iloilo FACTS Virgilio Sindico& is t(e registered o'ner of a *arcel of land& '(ic( (e let t(e s*ouses #ulalio and Concordia So+%rea cultivate& 'it(out (i+ s(aring in t(e *roduce& as (is ,assistance in t(e education of (is cousins, including defendant -eli*e So+%rea After t(e deat( of t(e #ulalio So+%rea& -eli*e continued to cultivate t(e lot On .une 20& 1//0& Sindico re1uested -eli*e2s 'ife for t(e return of t(e *ossession of t(e lot %ut t(e latter re1uested ti+e to advise (er (us%and Re*eated de+ands for t(e return of t(e *ossession of t(e lot re+ained un(eeded& forcing Sindico to file a civil case %efore t(e R)C against t(e s*ouses So+%rea for Accion Reivindicatoria 'it( Preli+inar3 !andator3 In4unction -)(e defendants filed a !otion to Dis+iss& alleging t(at t(e R)C (as no 4urisdiction over t(eir *erson and t(at as t(e su%4ect +atter of t(e case is an agricultural land '(ic( is covered %3 t(e Co+*re(ensive Agrarian Refor+ Progra+ 5CARP6 of t(e govern+ent& t(e case is 'it(in t(e e7clusive original 4urisdiction of t(e DARA8 in accordance 'it( Section 50 of Re*u%lic Act 995: 5);# CO!PR#;#<SIV# A=RARIA< R#-OR! "A> O- 1/??6 -)(e *laintiff filed an O**osition alleging t(at t(e case does not involve an agrarian dis*ute& t(ere %eing no tenanc3 relations(i* or lease(old agree+ent 'it( t(e defendants. -)(e R)C of Iloilo granted t(e !otion to Dis+iss -As t(eir !otion for Reconsideration 'as denied %3 t(e trial court& t(e *laintiffs& (erein *etitioners& lodged t(e *resent Petition for Revie' on Certiorari

A2010 Avena
ISSUE >O< t(e De*art+ent of Agrarian Refor+ Ad4udication 8oard 5DARA86 (as original and e7clusive 4urisdiction over t(e case at %ar HELD <o. Ratio. .urisdiction over t(e su%4ect +atter is deter+ined %3 t(e allegations of t(e co+*laint. It is not affected %3 t(e *leas set u* %3 t(e defendant in (is ans'er or in a +otion to dis+iss& ot(er'ise& 4urisdiction 'ould %e de*endent on (is '(i+s. Reasoning.)(e allegations in *etitioner2s co+*laint s(o' t(at t(e action is one for recover3 of *ossession& not one '(ic( involves an agrarian dis*ute. -Section 05d6 of RA 995: or t(e CARP "a' defines ,agrarian dis*ute, over '(ic( t(e DARA8 (as e7clusive original 4urisdiction as@ 5d6 an3 controvers3 relating to tenurial arrange+ents& '(et(er lease(old& tenanc3& ste'ards(i* or ot(er'ise& over lands devoted to agriculture& including dis*utes concerning far+'orAers associations or re*resentation of *ersons in negotiating& fi7ing& +aintaining& c(anging or seeAing to arrange ter+s or conditions of suc( tenurial arrange+ents including an3 controvers3 relating to co+*ensation of lands ac1uired under t(is Act and ot(er ter+s and conditions of transfer of o'ners(i* fro+ lando'ners to far+'orAers& tenants and ot(er agrarian refor+ %eneficiaries& '(et(er t(e dis*utants stand in t(e *ro7i+ate relation of far+ o*erator and %eneficiar3& lando'ner and tenant& or lessor and lessee. Since pe i i!ne"#$ %c i!n i# !ne &!" "ec!'e"( !& p!##e##i!n %n) )!e# n! in'!*'e %n %+"%"i%n )i#p, e, -e RTC -%# .,"i#)ic i!n !'e" i . Disposition Petition is granted.

Prof. Victoria A.

ground t(at t(e court (ad no 4urisdiction of t(e su%4ect +atter FACTS On Dec 1/0:& !la Railroad Co. %egan an action in C-I )arlac for t(e conde+nation of 9/&/10 s1. +. real estate located in )arlac. )(is is for construction of a railroad line ,fro+ Pani1ui to )a3ug in )arlac&, as aut(oriBed %3 la'. 8efore %eginning t(e action& !la Railroad (ad caused to %e +ade a t(oroug( searc( in t(e Office of t(e Registr3 of Pro*ert3 and of t(e )a7 '(ere t(e lands soug(t to %e conde+ned 'ere located and to '(o+ t(e3 %elonged. As a result of suc( investigations& it alleged t(at t(e lands in 1uestion 'ere located in )arlac. After filing and dul3 serving t(e co+*laint& t(e *laintiff& *ursuant to la' and *ending final deter+ination of t(e action& tooA *ossession of and occu*ied t(e lands descri%ed in t(e co+*laint& %uilding its line and *utting t(e sa+e in o*eration. On Oct 4& !la Railroad gave notice to t(e defendants t(at on Oct. /& a +otion 'ould %e +ade to t(e court to dis+iss t(e action u*on t(e ground t(at t(e court (ad no 4urisdiction of t(e su%4ect +atter& it (aving 4ust %een ascertained %3 t(e *laintiff t(at t(e land soug(t to %e conde+ned 'as situated in t(e Province of <ueva #ci4a& instead of t(e Province of )arlac& as alleged in t(e co+*laint. )(is +otion 'as (eard and& after due consideration& t(e trial court dis+issed t(e action u*on t(e ground *resented %3 t(e *laintiff. ISSUE0S 1. >O< C-I )arlac (as *o'er and aut(orit3 to taAe cogniBance of conde+nation of real estate located in anot(er *rovince 2. >O< Sec. 0::1 of t(e Code of Civil Procedure and
1

JURISDICTION DISTIN/UISHED FROM VENUE MANILA RAILROAD V ATTY. /ENERAL 20 P;I" 520 !OR#"A<D$ Dece+%er 11& 1/11
NATURE A**eal fro+ C-I )arlac2s 4udg+ent dis+issing t(e action %efore it on +otion of t(e *laintiff u*on t(e

SEC. 122. Venue of actions . Actions to confir+ title to real estate& or to secure a *artition of real estate& or to cancel clouds& or re+ove dou%ts fro+ t(e title to real estate& or to o%tain *ossession of real estate& or to recover da+ages for in4uries to real estate& or to esta%lis( an3 interest& rig(t& or title in or to real estate& or actions for t(e conde+nation of real estate for *u%lic use& s(all %e %roug(t in t(e *rovince 'ere t(e lands& or so+e *art t(ereof& is situated$ actions against e7ecutors& ad+inistrators& and guardians touc(ing t(e *erfor+ance of t(eir official duties& and actions for account and settle+ent %3 t(e+& and actions for t(e distri%ution of t(e estates of deceased *ersons a+ong t(e (eirs and distri%utes& and actions for t(e *a3+ent of legacies& s(all %e %roug(t in t(e *rovince in '(ic( t(e 'ill 'as ad+itted to *ro%ate& or letters of ad+inistration 'ere granted& or t(e guardian 'as a**ointed. And all actions not (erein ot(er'ise *rovided for +a3 %e %roug(t in an3 *rovince '(ere t(e

Civil Procedure Digest

Act. <o. 125? are a**lica%le and so t(e C-I (as no 4urisdiction HELD 1.C#S Ratio Sections 55 and 592 of Act <o. 109 of t(e P(ili**ine Co++ission confer *erfect and co+*lete 4urisdiction u*on t(e C-I of t(ese Islands 'it( res*ect to real estate in t(e P(ili**ine Islands. Suc( 4urisdiction is not +ade to de*end u*on localit3. )(ere is no suggestion of li+itation. )(e 4urisdiction is universal. It is no'(ere suggested& +uc( less *rovided& t(at a C-I of one *rovince& regularl3 sitting in said *rovince& +a3 not under certain conditions taAe cogniBance of an action arising in anot(er *rovince or of an action relating to real estate located outside of t(e %oundaries of t(e *rovince to '(ic( it +a3 at t(e ti+e %e assigned. JURISDICTION OVER PERSON OF THE PLAINTIFF
defendant or an3 necessar3 *art3 defendant +a3 reside or %e found& or in an3 *rovince '(ere t(e *laintiff& e7ce*t in cases 'ere ot(er s*ecial *rovision is +ade in t(is Code. In case neit(er t(e *laintiff nor t(e defendant resides 'it(in t(e P(ili**ine Islands and t(e action is %roug(t to seiBe or o%tain title to *ro*ert3 of t(e defendant 'it(in t(e P(ili**ine Islands and t(e action is %roug(t to seiBe or o%tain title to *ro*ert3 of t(e defendant 'it(in t(e P(ili**ine Islands& t(e action s(all %e %roug(t in t(e *rovince '(ere t(e *ro*ert3 '(ic( t(e *laintiff seeAs to seiBe or to o%tain title to is situated or is found@ Provided& t(at in an action for t(e foreclosure of a +ortgage u*on real estate& '(en t(e service u*on t(e defendant is not *ersonal& %ut is %3 *u%lication& in accordance 'it( la'& t(e action +ust %e %roug(t in t(e *rovince '(ere t(e land lies. And in all cases *rocess +a3 issue fro+ t(e court in '(ic( an action or s*ecial *roceeding is *ending& to %e enforced in an3 *rovince to %ring in defendants and to enforce all orders and decrees of t(e court. )(e failure of a defendant to o%4ect to t(e venue of t(e action at t(e ti+e of entering (is a**earance in t(e action s(all %e dee+ed a 'aiver on (is *art of all o%4ection to t(e *lace or tri%unal in '(ic( t(e action is %roug(t& e7ce*t in t(e actions referred to in t(e first si7teen lines of t(is section relating to real estate& and actions against e7ecutors& ad+inistrators& and guardians& and for t(e distri%ution of estates and *a3+ent of legacies.

A2010 Avena
Procedure does not alter or c(ange t(at *o'er or aut(orit3$ it si+*l3 directs t(e +anner in '(ic( it s(all %e full3 and 4ustl3 e7ercised. )o %e sure& in certain cases& if t(at *o'er is not e7ercised in confor+it3 'it( t(e *rovisions of t(e *rocedural la'& *urel3& t(e court atte+*ting to e7ercise it loses t(e *o'er to e7ercise it legall3. )(is does not +ean t(at it loses 4urisdiction of t(e su%4ect +atter. It +eans si+*l3 t(at (e +a3 t(ere%3 lose 4urisdiction of t(e *erson or t(at t(e 4udg+ent +a3 t(ere%3 %e rendered defective for lacA of so+et(ing essential to sustain it. )(ere is& of course& an i+*ortant distinction %et'een *erson and su%4ect +atter are %ot( conferred %3 la'. As to t(e su%4ect +atter& not(ing can c(ange t(e 4urisdiction of t(e court over di+inis( it or dictate '(en it s(all attac( or '(en it s(all %e re+oved. )(at is a +atter of legislative enact+ent '(ic( none %ut t(e legislature +a3 c(ange. On t(e ot(er (and& t(e 4urisdiction of t(e court over t(e *erson is& in so+e instances& +ade to defend on t(e consent or o%4ection& on t(e acts or o+issions of t(e *arties or an3 of t(e+. .urisdiction over t(e *erson& (o'ever& +a3 %e conferred %3 consent& e7*ressl3 or i+*liedl3 given& or it +a3& %3 an o%4ection& %e *revented fro+ attac(ing or re+oved after it (as attac(ed. 2. <O Ratio Sec. 0:: contains no e7*ress in(i%ition against t(e court. )(e *ro(i%ition *rovided t(erein is clearl3 directed against t(e one '(o %egins t(e action and la3s t(e venue. )(e court& %efore t(e action is co++enced& (as not(ing to do 'it( it eit(er. )(e *laintiff does %ot(. Onl3 '(en t(at is done does t(e section %egin to o*erate effectivel3 so far as t(e court is concerned. )(e *ro(i%ition is not a li+itation on t(e *o'er of t(e court %ut on t(e rig(ts of t(e *laintiff. It esta%lis(es a relation not %et'een t(e court and t(e su%4ect& %ut %et'een t(e *laintiff and t(e defendant. It relates not to 4urisdiction %ut to trial. It si+*l3 gives to defendant t(e un1ualified rig(t& if (e desires it& to (ave t(e trial taAe *lace '(ere (is land lies and '(ere& *ro%a%l3& all of (is 'itnesses live. Its o%4ect is to secure to (i+ a convenient trial. JURISDICTION OVER PERSON OF THE PLAINTIFF )(at it (ad 4urisdiction of t(e *ersons of all t(e *arties is indis*uta%le. )(at 4urisdiction 'as o%tained not onl3 %3 t(e usual course of *ractice t(at is& %3 t(e *rocess of t(e court %ut also %3 consent e7*ressl3 given& is a**arent. )(e *laintiff su%+itted

Prof. Victoria A.

itself to t(e 4urisdiction %3 %eginning t(e action. )(e defendants are no' in t(is court asAing t(at t(e action %e not dis+issed %ut continued. )(e3 are not onl3 nor o%4ecting to t(e 4urisdiction of t(e court %ut& rat(er& are (ere on t(is a**eal for t(e *ur*ose of +aintaining t(at ver3 4urisdiction over t(e+. <or is t(e *laintiff in an3 *osition to asAed for favors. It is clearl3 guilt3 of gross negligence in t(e allegations of its co+*laint& if t(e land does not lie in )arlac as it no' asserts. 6DISTIN/UISHED FROM VENUE )(e fact t(at suc( a *rovision a**ears in t(e *rocedural la' at once raises a strong *resu+*tion t(at it (as not(ing to do 'it( t(e 4urisdiction of t(e court over t(e su%4ect +atter. It %eco+es +erel3 a +atter of +et(od& of convenience to t(e *arties litigant. If t(eir interests are %est su%served %3 %ringing in t(e Court Instance of t(e cit3 of !anila an action affecting lands in t(e Province of Ilocos <orte& t(ere is no controlling reason '(3 suc( a course s(ould not %e follo'ed. )(e +atter is& under t(e la'& entirel3 'it(in t(e control of eit(er *art3. )(e *laintiffDs interests select t(e venue. If suc( selection is not in accordance 'it( section 0::& t(e defendant +a3 +aAe ti+el3 o%4ection and& as a result& t(e venue is c(anged to +eet t(e re1uire+ents of t(e la'. Section 0:: of t(e Code of Civil Procedure is not a**lica%le to actions %3 railroad cor*orations to conde+n lands$ and t(at& '(ile 'it( t(e consent of defendants e7*ress or i+*lied t(e venue +a3 %e laid and t(e action tried in an3 *rovince selected %3 t(e *laintiff nevert(eless t(e defendants '(ose lands lie in one *rovince& or an3 one of suc( defendants& +a3& %3 ti+el3 a**lication to t(e court& re1uire t(e venue as to t(eir& or& if one defendant& (is& lands to %e c(anged to t(e *rovince '(ere t(eir or (is lands lie. In suc( case t(e action as to all of t(e defendants not o%4ecting 'ould continue in t(e *rovince '(ere originall3 %egun. It 'ould %e severed as to t(e o%4ecting defendants and ordered continued %efore t(e court of t(e a**ro*riate *rovince or *rovinces. >(ile 'e are of t(at o*inion and so (old it can not affect t(e decision in t(e case %efore us for t(e reason t(at t(e )e&en)%n # %"e n! !7.ec in+ ! -e 'en,e %n) %"e n! %#8in+ &!" % c-%n+e -e"e!&. )(e3 (ave not onl3 e7*ressl3 su%+itted t(e+selves to t(e 4urisdiction of t(e court %ut are (ere asAing t(at t(at 4urisdiction %e +aintained against t(e efforts of t(e *laintiff to re+ove it.

SEC. 44. Jurisdiction of Courts of First Instance. )(e 4urisdiction of Courts of -irst Instance s(all %e of t'o Ainds@ 1. Original$ and 2. A**ellate. SEC. 45. Its original jurisdiction. Courts of -irst Instance s(all (ave original 4urisdiction@ 2. In all civil actions '(ic( involve t(e title to or *ossession of real *ro*ert3& or an3 interest t(erein& or t(e legalit3 of an3 ta7& i+*ost& or assess+ent& e7ce*t actions of forci%le entr3 into& and detainer of lands or %uildings& original 4urisdiction of '(ic( is %3 t(is Act conferred u*on courts of 4ustice of t(e *eace.
2

Civil Procedure Digest

Disposition )(e 4udg+ent +ust %e R#V#RS#D and t(e case R#!A<D#D to t(e trial court 'it( direction to *roceed 'it( t(e action according to la'.

A2010 Avena
jurisdiction over the civil case and t(at said case was within the e clusive original jurisdiction of the Court of !grarian Relations "C!R#. C-I of Sulu@ *etition dis+issed 'it(out cause F*etitioner (as not *resented an3 *roof or s(o'ing of landlord and tenant relations(i* %et'een t(e *arties, to %ring t(e case 'it(in t(e 4urisdiction of t(e CAR& and t(at u*on t(e allegations of t(e co+*laint& t(e case is ,clearl3 one of e4ect+ent., ISSUE >O< t(e .O)P Court (as 4urisdiction over t(e case filed %3 C(ua HELD NO Ratio. >(ere a 4udg+ent or 4udicial order is void in t(is sense it +a3 %e said to %e a la'less t(ing& '(ic( can %e treated as an outla' and slain at sig(t& or ignored '(erever and '(enever it e7(i%its its (ead. And in =o+eB vs. Conce*cion& t(is Court 1uoted 'it( a**roval t(e follo'ing fro+ -ree+an on .udg+ents@ ,A void 4udg+ent is in legal effect no 4udg+ent. 83 it no rig(ts are divested. -ro+ it no rig(ts can %e o%tained. 8eing 'ort(less in itself& all *roceedings founded u*on it are e1uall3 'ort(less. It neit(er %inds nor %ars an3 one. All acts *erfor+ed under it and all clai+s flo'ing out of it are void. )(e *arties atte+*ting to enforce it +a3 %e res*onsi%le as tres*assers. )(e *urc(aser at a sale %3 virtue of its aut(orit3 finds (i+self 'it(out title and 'it(out redress., Since t(e 4udg+ent (ere on its face is void a% initio& t(e li+ited *eriods for relief fro+ 4udg+ent in Rule 0? are ina**lica%le. )(at 4udg+ent is vulnera%le to attacA ,in an3 'a3 and at an3 ti+e& even '(en no a**eal (as %een taAen., Reasoning. )(e *rovisions of Sec. 21 of RA 11// 5a**roved August 00& 1/546& Ano'n as t(e Agricultural )enanc3 Act of t(e P(ili**ines& read@ "SEC. 21. Ejectment; violation; jurisdiction. All cases involving the dispossession of a tenant ! the landholder or ! a third part! and"or the settlement and disposition of disputes arising from the relationship of landholder and tenant# as $ell as the violation of an! of the provisions of this Act# shall e under the original and e%clusive jurisdiction of such court as ma! no$ or hereafter e authori&ed ! la$ to ta'e cogni&ance of tenanc! relations anddisputes." Sec. :& RA 129:& creating t(e -irst Court of Agrarian Relations& effective .une 14& 1/55& as a+ended %3

Prof. Victoria A.

JURISDITION VOID ABBAIN V. CHUA 99 SCRA 2:; S%nc-e<= Fe7",%"( 95, 3>5;
NATURE Direct a**eal to t(e SC FACTS !arc( 12& 1/5?@ )ong(a+ C(ua co++enced suit for forci%le entr3 and illegal detainer against ;ati% A%%ain 'it( t(e .ustice of t(e Peace 5.OP6 Court of 8ongao& Sulu. C(uaDs averred t(at (e is t(e o'ner of a 4 (ectare land toget(er 'it( t(e i+*rove+ents t(ereon +ostl3 coconut trees located in !araning& 8ongao& Sulu$ t(at t(is land 'as donated to (i+ %3 (is fat(er& Su%ing C(ua& in 1/52 and fro+ t(at date (e (as assu+ed o'ners(i* t(ereof& taAen *ossession of t(e land and *aid t(e corres*onding ta7es 3earl3$ t(at fro+ 1/52 1/5?& A%%ain (as %een (is tenant and t(e t'o divided t(e fruits or co*ra (arvested t(erefro+ on 50 50%asis$ t(at in 1/5:& A%%ain %3 +eans of force& strateg3 and stealt( unla'full3 entered and still occu*ies t(e land in 1uestion after C(ua (ave re*eatedl3 de+anded of (i+ to vacate t(e *re+ises due to (is failure to give c(ua2s s(are of t(e several (arvests. "C@ .OP !anagula rendered 4udg+ent directing A%%ain to vacate t(e *re+ises and *lace C(ua in *ossession of t(e *lantation& 'it( costs. )(is 4udg+ent 'as *redicated u*on t(e findings t(at so+eti+e %efore >>II& A%%ain& %ecause of financial (ards(i*& sold for P225 to Su%ing C(ua t(e coconut *lantation$ t(at after t(e sale& A%%ain %eca+e t(e tenant of C(ua& t(e (arvests of t(e land divided on a 50 50 %asis$ t(at su%se1uentl3& Su%ing C(ua donated t(e *lantation to (is son& )ong(a+ C(ua& and A%%ain& t(e sa+e tenant of t(e fat(er& continued to %e t(e tenant on t(e land. A%%ain filed a *etition in t(e C-I of Sulu against )ong(a+ C(ua and .udge !anagula& seeAing relief fro+ t(e 4udg+ent of t(e .O)P Court anrEor annul+ent of its decision 'it( *reli+inar3 in4unction. ;e averred t(at t(e JOTP Court did not have

Re*u%lic Act 140/ '(ic( tooA effect on Se*te+%er /& 1/55&*rovides( "SEC. ). *urisdiction of the Court. +he Court shall have original and e%clusive jurisdiction over the entire Philippines# to consider# investigate# decide# and settle all ,uestions# matters# controversies or disputes involving all those relationships esta lished ! la$ $hich determine the var!ing rights of persons in the cultivation and use of agricultural land $here one of the parties $or's the land." C(uaDs co+*laint 'as filed on !arc( 12& 1/5? G long after RA2s 11//& 129: and 140/ 'ere incor*orated in our statute %ooAs. C(uaDs co+*laint *ositivel3 averred t(at ;ati% A%%ain is (is tenant on a 50 50 s(aring %asis of t(e (arvest$ and t(at (e seeAs e4ect+ent of ;ati% A%%ain ,due to (is non co+*liance of our agree+ent of (is giving +3 s(are of t(e several (arvests (e +ade., )(e .O)P Court itself found t(at A%%ain continued to %e t(e tenant of C(ua after t(e latter %eca+e o'ner of t(e *lantation '(ic( (e ac1uired fro+ (is fat(er %3 virtue of a donation$ and t(at A%%ain refused to give ,t(e s(are of (is landlord of t(e (arvest., If %ot( t(e co+*laint and t(e inferior courtDs 4udg+ent (ave an3 +eaning at all& it is t(at t(e .O)P Court (ad no 4urisdiction over t(e case. Rig(t at t(e outset& t(e co+*laint s(ould (ave %een re4ected. -ailing in t(is& t(e case s(ould (ave %een dis+issed during t(e course of t(e trial& '(en it %eca+e all t(e +ore evident t(at a landlord tenant relations(i* e7isted. )(e 4udge (ad no *o'er to deter+ine t(e case. 8ecause C(uaDs suit co+es 'it(in t(e coverage of Sec. 21& R.A. 11// t(at ,cases involving t(e dis*ossession of a tenant %3 t(e land(older&, s(all %e under t(e ,original and e7clusive 4urisdiction of suc( court as +a3 no' or (ereafter %e aut(oriBed %3 la' to taAe cogniBance of tenanc3 relations and dis*utes,& and t(e %road s'ee* of Section :& RA 129:& '(ic( lodged 'it( t(e CAR ,original and e7clusive 4urisdiction . . . to consider& investigate& decide& and settle all 1uestions& +atters& controversies or dis*utes involving all t(ose relations(i*s esta%lis(ed %3 la' '(ic( deter+ine t(e var3ing rig(ts of *ersons in t(e cultivation and use of agricultural land '(ere one of t(e *arties 'orAs t(e land., .uris*rudence (as since sta%iliBed t(e 4urisdiction of t(e CAR over cases of t(is nature. Suc( e7clusive aut(orit3 is not divested %3 a +ere aver+ent on t(e *art of t(e tenant t(at (e asserts o'ners(i* over t(e land& ,since t(e la' does not e7clude fro+ t(e 4urisdiction, of t(e CAR& ,cases in '(ic( a tenant

Civil Procedure Digest

clai+s o'ners(i* over t(e land given to (i+ for cultivation %3 t(e landlord., )(e 4udg+ent and *roceedings of t(e .ustice of t(e Peace Court are null and void. The judg$ent of the JOTP Court is not $erel% a voida&le judg$ent. It is void on its face. It $a% &e attac'ed directl% or collaterall%. ;ere& t(e attacA is direct. A%%ain soug(t to annul t(e 4udg+ent. #ven after t(e ti+e for a**eal or revie' (ad ela*sed& a**ellant could %ring& as (e %roug(t& suc( an action. !ore& (e also soug(t to en4oin enforce+ent of t(at 4udg+ent. In var3ing language& t(e Court (as e7*ressed its re*ro%ation for 4udg+ents rendered %3 a court 'it(out 4urisdiction. Suc( a 4udg+ent is (eld to %e a dead li$& on the judicial tree( which should &e lopped of) or wholl% disregarded as the circu$stances re*uire. Disposition )(e decision of t(e .O)P Court of Sulu is annulled.

A2010 Avena
In t(eir A<S>#R >I); COI<)#RC"AI!& S#A-D#C alleged t(at <"RC (as n! .,"i#)ic i!n !'e" -e c%#e 7ec%,#e? 516 It is an international organiBation$ 526 "aBaga +ust first secure clearances fro+ t(e *ro*er de*art+ents for *ro*ert3 or +one3 accounta%ilit3 %efore an3 clai+ for se*aration *a3 'ill %e *aid 5and clearances (as not %een *aid6 COI<)#RC"AI!@ "aBaga (ad *ro*ert3 accounta%ilit3 and outstanding o%ligation to S#A-D#C AHD a+ounting to P2:& 502.11 and t(at "aBaga 'as not entitled to t(e accrued sicA leave %enefits due to (is failure to avail of t(e sa+e during (is e+*lo3+ent "A@ for "aBaga <"RC@ affir+ed "A& deleted attorne32s fees and actual da+ages S#A-D#C AHD filed !-R& denied ISSUES 1. >O< S#A-#C AHD is i++une fro+ suit o'ing to its international c(aracter 2. >O< S#A-D#C AHD is esto**ed fro+ clai+ing t(at t(e court (ad no 4urisdiction HELD 1. C#S Ratio. 8eing an intergovern+ental organiBation& S#A-D#C including its de*art+ents en4o3s functional inde*endence and freedo+ fro+ control of t(e state in '(ose territor3 its office is located. Reasoning. One of t(e %asic i++unities of an international organiBation is i++unit3 fro+ local 4urisdiction 5i++une fro+ legal 'rits and *rocesses issued %3 t(e tri%unals of t(e countr3 '(ere it is found6 t(at t(e su%4ection of suc( an organiBation to t(e aut(orit3 of t(e local courts 'ould afford a convenient +ediu+ t(ru '(ic( t(e (ost govern+ent +a3 interfere in t(eir o*erations or even influence or control its *olicies and decisions of t(e organiBation. Suc( su%4ection to local 4urisdiction 'ould i+*air t(e ca*acit3 of suc( %od3 to disc(arge its res*onsi%ilities i+*artiall3 on %e(alf of its +e+%er states. 2. <O Ratio. #sto**el does not a**l3 to confer 4urisdiction to a tri%unal t(at (as none over a cause of action. .urisdiction is conferred %3 la'. >(ere t(ere is none& no agree+ent of t(e *arties can *rovide one. Settled is t(e rule t(at t(e decision of a tri%unal not vested 'it( a**ro*riate 4urisdiction is null and void. )(e lacA of 4urisdiction of a court +a3 %e raised at an3 stage of t(e *roceedings& even on a**eal.

Prof. Victoria A.
)(e issue of 4urisdiction is not lost %3 'aiver or %3 esto**el

ECcep i!n? SOLIVEN '# FASTFORMS PHILS. ::B SCRA 1;> S%n)!'%*-/, ie""e<, Oc !7e" 3;, 9BB:
NATURE *etition for revie' on certiorari FACTS Petitioner !arie Antoinette Soliven filed a co+*laint for P1/5&155 as actual da+ages 'it( P200A as +oral da+ages& P100A as e7e+*lar3 da+ages and P100A as attorne32s fees against res*ondent -astfor+ P(ils.& 'it( t(e !aAati R)C. It alleged t(at res*ondent& t(roug( its *resident Dr. #sco%ar& o%tained a loan fro+ *etitioner 5P1:0A6 *a3a%le 'it(in 21 da3s 'it( 0J interest. On t(e sa+e da3& res*ondent issued a *ostdated c(ecA for P1:0A K P5A int. 0 'eeAs later& #sco%ar advised *etitioner not to de*osit t(e c(ecA as t(e account fro+ '(ere it 'as dra'n (ad insufficient funds and instead *ro*osed t(at t(e P1:5A %e rolled over 'it( 5J +ont(l3 interest& to '(ic( t(e latter agreed. Res*ondent issued several c(ecAs as *a3+ent for interests for 5 +ont(s %ut t(ereafter refused to *a3 its *rinci*al o%ligation des*ite *etitioner2s re*eated de+ands. In its counterclai+& res*ondent denied o%taining t(e loan and t(at it did not aut(oriBe #sco%ar to secure said loan or issue c(ecAs as *a3+ent for interests. After a trial on t(e +erits& t(e court ordered res*ondent to *a3 t(e a+ount of t(e loan *lus interest and attorne3s fees& %ut +oral and e7e+*lar3 da+ages as 'ell as t(e counterclai+ 'ere dis+issed. Res*ondent filed a !-R 1uestioning t(e court2s 4urisdiction alleging t(at since t(e *rinci*al de+and 5P1/5&1556 did not e7ceed P200A& t(e co+*laint s(ould (ave %een filed 'it( t(e !)C& *ursuant to RA :9/1. )(e )C denied t(e !-R since t(e totalit3 of t(e clai+ e7ceeded 200A and since res*ondent 'as esto**ed fro+ 1uestioning 4urisdiction. On a**eal& t(e CA reversed t(e )C decision on t(e ground of lacA of 4urisdiction and t(at res*ondent +a3 assail 4urisdiction of t(e )C an3ti+e even for t(e first ti+e

JURISDICTION BY ESTOPPEL /ene"%* ",*e? SEAFDEC V NLRC @LAZA/AA 9B5 SCRA 9;1 NOCON, Fe7",%"( 3:, 3>>:
NATURE Petition for certiorari to revie' t(e decision of t(e <"RC FACTS S#A-D#C AHD is a de*art+ent of an international organiBation& t(e Sout(east Asian -is(eries Develo*+ent Center. Private Res*ondent "aBaga 'as (ired as a Researc( Associate and eventuall3 %eca+e t(e ;ead of #7ternal Affairs Office of S#A-D#C AHD. ;o'ever& (e 'as ter+inated allegedl3 due to financial constraints %eing e7*erienced %3 S#A-#C AHD. ;e 'as su**osed to receive se*aration %enefits %ut S#A-D#C AHD failed to *a3 *rivate res*ondent (is se*aration *a3 so "aBaga filed a co+*laint for non *a3+ent of se*aration %enefits& *lus +oral da+ages and attorne32s fees 'it( t(e <"RC.

Civil Procedure Digest

on a**eal. Petitioner filed an !-R '(ic( 'as denied %3 t(e CA& (ence t(is *etition. ISSUE @MeD7e"# !& "e*i+i!,# +"!,pA >O< t(e trial court (as 4urisdiction over t(e case HELD <O. Ratio. >(ile it is true t(at 4urisdiction +a3 %e raised at an3 ti+e& t(is rule *resu**oses t(at esto**el (as not su*ervened. Since res*ondent activel3 *artici*ated in all stages of t(e *roceedings %efore t(e )C and even soug(t affir+ative relief& it is esto**ed fro+ c(allenging t(e )C2s 4urisdiction& es*eciall3 since an adverse 4udg+ent (ad %een rendered. A *art3 cannot invoAe t(e 4urisdiction of a court to secure affir+ative relief against (is o**onent and after o%taining or failing to o%tain suc( relief& re*udiate t(at sa+e 4urisdiction. Reasoning. Section 0 of RA :9/1 *rovides t(at '(ere t(e a+ount of t(e de+and in t(e co+*laint instituted in !etro !anila does not e7ceed P200A& e7clusive of interest& da+ages of '(atever Aind& att32s fees& litigation e7*enses and costs& t(e e7clusive 4urisdiction over t(e sa+e is vested in t(e !etro*olitan )rial court& !unici*al )rial Court and !unici*al Circuit )rial Court. Ad+inistrative Circular 0/ /4 s*ecifies guidelines in t(e i+*le+entation of RA :9/1. Par 2 of t(e Circular *rovides t(at t(e ter+ Fda+ages of '(atever AindL a**lies onl3 to cases '(ere da+ages are +erel3 a conse1uence of t(e +ain action. In t(e instant case& t(e +ain cause of action is t(e collection of t(e de%t a+ounting to P1/5A. )(e da+ages %eing clai+ed are +erel3 incidental and are t(us not included in deter+ining t(e 4urisdictional a+ount. Disposition. >;#R#-OR#& t(e instant *etition is =RA<)#D

A2010 Avena
NATURE Petition for certiorari FACTS .ul3 1/:/ M Private res*ondent "aurente 5for+er sale su*ervisor of *etitioner cor*oration6 'as notified and advised of (is i++ediate ter+ination for gross neglect of dut3 andEor dis(onest3 August 1/:/ "aurente instituted a civil action for da+ages against S-SC and Siao& its +anager "aurente filed a co+*laint for illegal dis+issal 5la%or case6. .anuar3 1/?0 Petitioners filed a +otion to dis+iss on Civil Case& clai+ing t(at t(e 4urisdiction s(ould %e vested 'it( t(e <"RC. -e%ruar3 5& 1/?0 it 'as found t(at t(e ter+ination of t(e co+*lainant 'as for a 4ust and valid cause -e%ruar3 2?& 1/?0 M )(e court in Civil Case deferred t(e deter+ination of t(e +otion to dis+iss until after trial. Petitioners filed a +otion for reconsideration %ut it 'as denied. )(us& t(is *etition for t(e issuance of a 'rit of *reli+inar3 in4unction. ISSUE >O< t(e res*ondent 4udge co++itted grave a%use of discretion '(en it deferred t(e deter+ination or resolution of t(e +otion to dis+iss 1uestioning t(e 4urisdiction of t(e court over clai+s for da+ages. HELD <O. Ratio ,5t6(e rule is t(at '(ere a court (as alread3 o%tained and is e7ercising 4urisdiction over a controvers3& its 4urisdiction to *roceed to t(e final deter+ination of t(e cause is not affected %3 ne' legislation *lacing 4urisdiction over suc( *roceedings in anot(er tri%unal. )(e e7ce*tion to t(e rule is '(ere t(e statute e7*ressl3 *rovides& or is construed to t(e effect t(at it is intended to o*erate as to actions *ending %efore its enact+ent. >(ere a statute c(anging t(e 4urisdiction of a court (as no retroactive effect& it cannot %e a**lied to a case t(at 'as *ending *rior to t(e enact+ent of t(e statute., 58engBon v. Inciong6 Reasoning

Prof. Victoria A.

clai+s for actual& +oral& e7e+*lar3 and ot(er for+s of da+ages arising fro+ an e+*lo3er e+*lo3ee relations(i*. ;o'ever& '(en t(e civil case for da+ages 'as instituted in 1/:/& t(e a**lica%le la' t(en 'as Article 21: 5a6 506 of t(e "a%or Code as a+ended %3 Presidential Decree <o. 109: 5!a3 1& 1/:?6 '(ic( *rovides t(at -a or Ar iters shall not entertain claims for moral or other forms of damages. %. )o re1uire t(e *rivate res*ondent to file a single suit co+%ining (is actions for illegal dis+issal and da+ages in t(e <"RC 'ould %e to sanction t(e retroactivit3 of Re*u%lic Act <o. 9:15 '(ic( tooA effect on !arc( 21& 1/?/& '(ere t(e sa+e la' does not e7*ressl3 so *rovide& or does not intend to o*erate as to actions *ending %efore its enact+ent& (ence *re4udicial to t(e orderl3 ad+inistration of 4ustice. Disposition. )(e *etition is DIS!ISS#D for lacA of +erit.

ACEUIRED JURISDICTION PERSON O& -e p*%in i&&

OVER

THE

MANILA RAILROAD V ATTY. /ENERAL @p%+e 3A

FACTS !anila Railroad filed an action for conde+nation *roceedings in C-I of )arlac '(en t(e3 Ane' t(at t(e lands concerned are found in <ueva #ci4a. <o' t(e3 are assailing t(e 4urisdiction of C-I )arlac. ACEUIRED JURISDICTION OVER THE PERSON O& -e p*%in i&&? Procedure does not alter or c(ange t(at *o'er or aut(orit3$ it si+*l3 directs t(e +anner in '(ic( it s(all %e full3 and 4ustl3 e7ercised. )o %e sure& in certain cases& if t(at *o'er is not e7ercised in confor+it3 'it( t(e *rovisions of t(e *rocedural la'& *urel3& t(e court atte+*ting to e7ercise it loses t(e *o'er to e7ercise it legall3. )(is does not +ean t(at it loses 4urisdiction of t(e su%4ect +atter. It +eans si+*l3 t(at (e +a3 t(ere%3 lose 4urisdiction of t(e *erson or t(at t(e 4udg+ent +a3 t(ere%3 %e rendered defective for lacA of so+et(ing essential to sustain it. )(ere is& of course& an i+*ortant distinction %et'een *erson and su%4ect +atter are %ot( conferred %3 la'. As to t(e su%4ect +atter& not(ing can c(ange t(e 4urisdiction of t(e court over

ONCE ATTACHED, JURISDICTION NOT OUSTED BY SUBSEEUENT STATUTE UNLESS SO PROVIDED SOUTHERN FOOD SALES CORPORATION '#. SALAS 9B5 SCRA 111 MEDIALDEA= Fe7 3;, 3>>9

a.

Article 21: 5a6 546 of t(e "a%or Code as a+ended %3 Section / of Re*u%lic Act <o. 9:15 clearl3 *rovides t(at t(e la%or ar%iter s(all (ave original and e7clusive 4urisdiction to (ear and decide

Civil Procedure Digest

di+inis( it or dictate '(en it s(all attac( or '(en it s(all %e re+oved. )(at is a +atter of legislative enact+ent '(ic( none %ut t(e legislature +a3 c(ange. On t(e ot(er (and& t(e 4urisdiction of t(e court over t(e *erson is& in so+e instances& +ade to defend on t(e consent or o%4ection& on t(e acts or o+issions of t(e *arties or an3 of t(e+. .urisdiction over t(e *erson& (o'ever& +a3 %e conferred %3 consent& e7*ressl3 or i+*liedl3 given& or it +a3& %3 an o%4ection& %e *revented fro+ attac(ing or re+oved after it (as attac(ed. )(at it (ad 4urisdiction of t(e *ersons of all t(e *arties is indis*uta%le. )(at 4urisdiction 'as o%tained not onl3 %3 t(e usual course of *ractice t(at is& %3 t(e *rocess of t(e court %ut also %3 consent e7*ressl3 given& is a**arent. )(e *laintiff su%+itted itself to t(e 4urisdiction %3 %eginning t(e action. )(e defendants are no' in t(is court asAing t(at t(e action %e not dis+issed %ut continued. )(e3 are not onl3 nor o%4ecting to t(e 4urisdiction of t(e court %ut& rat(er& are (ere on t(is a**eal for t(e *ur*ose of +aintaining t(at ver3 4urisdiction over t(e+. <or is t(e *laintiff in an3 *osition to asAed for favors. It is clearl3 guilt3 of gross negligence in t(e allegations of its co+*laint& if t(e land does not lie in )arlac as it no' asserts.

A2010 Avena
Sigua. Su++ons 'ere issued %ut one 'as returned unserved for Sigua 'ile t(e ot(er served t(ru C(u2s 'ife. 8oticano +oved to dis+iss t(e case against Sigua and to declare C(u in default. )(e Court granted t(e +otions and adduced fro+ evidence t(at C(u is res*onsi%le for t(e fault and negligence of t(e driver under Art 21?0 CC. C(u filed 'it( t(e )C a notice of a**eal and an urgent +otion for e7tension of ti+e to file record on a**eal. Court granted t(e +otions. 8oticano filed a !)D t(e a**eal and for e7ecution& %ut t(e a**eal 'as still a**roved. )(e case 'as %roug(t to t(e CA. CA set aside t(e )C decision for %eing null and void. 8oticano filed an !-R 'it( t(e CA to '(ic( CA denied. ISSUE0S 1. >O< t(e 1uestion of 4urisdiction of t(e court over t(e *erson of t(e defendant cannot %e raised for t(e first ti+e on a**eal 2. >O< CA erred in (olding t(at C(u did not voluntaril3 su%+it (i+self to t(e 4urisdiction of t(e )C des*ite (is voluntar3 a**earance HELD 1. <O Ratio )(e defects in 4urisdiction arising fro+ irregularities in t(e co++ence+ent of t(e *roceedings& defective *rocess or even a%sence of *rocess +a3 %e 'aived for failure to +aAe seasonal o%4ections. Reasoning )(e circu+stances a**ear to s(o' t(at t(ere 'as 'aiver %3 t(e defendant to allege suc( defect '(en (e failed to raise t(e 1uestion in t(e C-I and at t(e first o**ortunit3. 2. C#S& (e voluntaril3 su%+itted (i+self to t(e court2s 4urisdiction. Ratio Inder Sec 20& Rule 14 ROC& t(e defendant2s voluntar3 a**earance in court s(all %e e1uivalent to service. It (as %een (eld %3 t(e court t(at t(e defect of su++ons is cured %3 t(e voluntar3 a**earance %3 t(e a**earance of t(e defendant. Disposition )(e assailed decision and resolution of CA are reversed and set aside. )(e decision of t(e C-I 5no' R)C6 is reinstated.

Prof. Victoria A.

RODRI/UEZ VS ALIFPALA 42 SCRA :44 CASTRO= J,ne 94, 3>2:

NATURE Petition for certiorari FACTS Petitioner RodrigueB filed a case for recover3 of t(e su+ of P5&020.00 *lus interest& attorne32s fees and cost against S*s. Ro%ellado. A 'rit of *reli+inar3 attac(+ent 'as issued and served to -e Ro%ellado at t(eir store in Divisoria. S*s Ro%ellado *leaded to t(e RodrigueB for ti+e %efore t(e attac(+ent to %e effectivel3 enforced. RodrigueB agreed to t(e sus*ension of t(e 4udg+ent on t(e condition t(at -e Ro%ellado2s *arents& t(e no' res*ondents& -ederico N -elisa )olentino& to %ind t(e+selves 4ointl3 and severall3 'it( t(e Ro%ellados& to *a3 t(e entire o%ligation su%4ect of t(e suit. -elisa )olentino& %eing *resent& i++ediatel3 agreed to t(is *ro*osal. A co+*ro+ise agree+ent 'as t(en entered to %3 t(e *arties. )(e Re%ellados su%se1uentl3 failed to co+*l3 'it( t(e ter+s of t(e co+*ro+ise agree+ent& t(us *ro+*ting *etitioner RodrigueB to re1uest t(e Cit3 Court for a 'rit of e7ecution on t(e *ro*erties of t(e Ro%ellados and also of t(e )olentinos. )(e re1uest 'as granted %3 t(e Cit3 Court. )(e )olentinos %roug(t an action for certiorari 'it( t(e Court of -irst Instance of !anila. )(e C-I rendered 4udg+ent e7cluding t(e )olentinos fro+ t(e effects of t(e 'rit of e7ecution. )(us t(is a**eal. ISSUE >O< t(e C-I erred in e7cluding t(e )olentinos fro+ t(e effects of t(e 'rit of e7ecution. HELD C#S )(e contention of t(e C-I t(at t(e dis*ositive *ortion of t(e 4udg+ent of t(e Cit3 Court does not e7*licitl3 en4oin t(e )olentinos to *a3 4ointl3 and severall3 'it( t(e Re%ellados t(e a+ount due to t(e *laintiff& and t(at t(e Cit3 Court never ac1uired 4urisdiction over )olentinos and t(erefore cannot %e %ound %3 t(e 4udg+ent rendered %3 said court& is erroneous. )(e dis*ositive *ortion of t(e 4udg+ent of t(e Cit3 Court a**roving t(e co+*ro+ise and en4oining strict co+*liance t(ereto %3 t(e *arties is ade1uate for t(e

O& -e )e&en)%n 3. 7( #e"'ice !& #,DD!n# 9. 7( '!*,n %"( %ppe%"%nce BOTICANO V CHU, JR 3:; SCRA 4:3 PARAS= M%"c- 35, 3>;2
NATURE Petition for revie' on certiorari seeAing to reverse and set aside CA ruling of den3ing !-R. FACTS #liseo 8oticano is t(e registered o'ner of a 8edford trucA '(ic( is used in (auling logs for a fee. It 'as (it at t(e rear %3 anot(er 8edford trucA o'ned %3 !anuel C(u and driven %3 .ai+e Sigua '(ile loaded 'it( logs and *arAed *ro*erl3 %3 t(e driver !a7i+o Dalangin at t(e s(oulder of t(e national (ig('a3. C(u acAno'ledged o'ners(i* and agreed to s(oulder t(e e7*enses of t(e re*air& %ut failed to co+*l3 'it( t(e agree+ent. 8oticano filed a co+*laint at t(e C-I at Ca%anatuan against C(u and

1. 7( '!*,n %"( #,7Di##i!n

Civil Procedure Digest

*ur*ose of e7ecution. .udg+ent on a co+*ro+ise need not s*ecificall3 na+e a *erson to %e su%4ect of e7ecution t(ereof in o%vious avoidance of re*etition. On *%c8 !& .,"i#)ic i!n !& -e c!," !'e" -e T!*en in!#@ t(e )olentinos freel3 and voluntaril3 entered into t(e co+*ro+ise agree+ent '(ic( %eca+e t(e %asis of 4udg+ent of t(e Cit3 Court. Inder t(e circu+stances& t(e )olentinos are esto**ed t(e ver3 aut(orit3 t(e3 invoAed. And even assu+ing t(at esto**el lies& 'e cannot set aside t(e *rinci*le of e1uit3 t(at jurisdiction over a person not originall% a part% to a case $a% &e ac*uired( upon proper conditions( thru the voluntar% appearance of the person &efore the court. 83 co+ing for'ard 'it( t(e original litigants in +oving for a 4udg+ent on co+*ro+ise and %3 assu+ing suc( interest in t(e final ad4udication of t(e case toget(er 'it( t(e Ro%ellados& t(e )olentinos effectivel3 su%+itted t(e+selves to t(e 4urisdiction of t(e Cit3 Court. J,"i#)ic i!n !'e" -e p*%in i&& can %e ac1uired %3 t(e court u*on filing of t(e co+*laint. On t(e ot(er (and& .,"i#)ic i!n !'e" -e )e&en)%n # can %e ac1uired %3 t(e court u*on service of valid su++ons and u*on voluntar3 a**earanceEsu%+ission of a *erson in court.

A2010 Avena
de*osit in t(e *ost office in a sta+*ed envelo*e a co*3 of t(e su++ons and co+*laint directed to Palanca at (is last *lace of residence. )(e cause *roceeded in t(e C-I and Palanca not (aving a**eared& 4udg+ent 'as taAen against (i+ %3 default. It 'as ordered t(at Palanca s(ould deliver said a+ount to t(e clerA of t(e court to %e a**lied to t(e satisfaction of t(e 4udg+ent& and it 'as declared t(at in case of failure to satisf3 t(e 4udg+ent& t(e +ortgage *ro*ert3 located in t(e cit3 of !anila s(ould %e e7*osed to *u%lic sale. Pa3+ent 'as never +ade and t(e court ordered t(e sale of t(e *ro*ert3. )(e *ro*ert3 'as %roug(t in %3 t(e %anA. A%out seven 3ears after t(e confir+ation of t(is sale& a +otion 'as +ade %3 Vicente Palanca& as ad+inistrator of t(e estate of t(e original defendant& '(erein t(e a**licant re1uested t(e court to set aside t(e order. ISSUE 1. >O< t(e order of default and t(e 4udg+ent rendered t(ereon 'ere void %ecause t(e court (ad never ac1uired 4urisdiction over t(e defendant or over t(e su%4ect of t(e action. 2. >O< t(e su**osed irregularit3 in t(e *roceedings 'as of suc( gravit3 as to a+ount to a denial of due *rocess of la'. RULIN/ 1. <O. )(e action to foreclose a +ortgage is said to %e a p"!cee)in+ H,%#i in "eD& %3 '(ic( is e7*ressed t(e idea t(at '(ile it is not strictl3 s*eaAing an action in re+ 3et it *artaAes of t(at nature and is su%stantiall3 suc(. )(e e7*ression& I%c i!n in "eDJ is& in its narro' a**lication& used onl3 'it( reference to certain *roceedings in courts of ad+iralt3 '(erein t(e *ro*ert3 alone is treated as res*onsi%le for t(e clai+ or o%ligation u*on '(ic( t(e *roceedings are %ased. )(e action 1uasi in re+ differs fro+ t(e true action in re+ in t(e circu+stance t(at in t(e for+er an individual is na+ed as defendant& and t(e *ur*ose of t(e *roceeding is to su%4ect (is interest t(erein to t(e o%ligation or lien %urdening t(e *ro*ert3. All *roceedings (aving for t(eir sole o%4ect t(e sale or ot(er dis*osition of t(e *ro*ert3 of t(e defendant& '(et(er %3 attac(+ent& foreclosure& or ot(er for+ of re+ed3& are in general 'a3 t(us designated. )(e 4udg+ent entered in t(ese *roceedings is conclusive onl3 %et'een t(e *arties.

Prof. Victoria A.

ACEUIRED JURISDICTION OVER THE RES EL BANCO ESPAGOL-FILINO '. PALANCA 12 P-i*. >93 STREET= M%"c- 95, 3>3;
FACTS A +ortgage 'as e7ecuted %3 Palanca& as securit3 for a de%t o'ing to (i+ to t(e %anA. After t(e e7ecution of t(is instru+ent& Palanca returned to C(ina '(ere (e died. As Palanca 'as a nonresident& it 'as necessar3 for t(e %anA to give notice to (i+ %3 *u%lication *ursuant to section 0// of t(e Code of Civil Procedure. An order for *u%lication 'as accordingl3 o%tained fro+ t(e court& and *u%lication 'as +ade in due for+ in a ne's*a*er of t(e cit3 of !anila. )(e order of t(e court 'as entered directing t(at *u%lication s(ould %e +ade in a ne's*a*er& t(e court directed t(at t(e clerA of t(e court s(ould

Several *rinci*les@ 516 )(at t(e 4urisdiction of t(e court is derived fro+ t(e *o'er '(ic( it *ossesses over t(e *ro*ert3$ 5II6 t(at 4urisdiction over t(e *erson is not ac1uired and is nonessential$ 5III6 t(at t(e relief granted %3 t(e court +ust %e li+ited to suc( as can %e enforced against t(e *ro*ert3 itself. In a foreclosure *roceeding against a nonresident o'ner it is necessar3 for t(e court& as in all cases of foreclosure& to ascertain t(e a+ount due& as *rescri%ed in section 259 of t(e Code of Civil Procedure& and to +aAe an order re1uiring t(e defendant to *a3 t(e +one3 into court. )(is ste* is a necessar3 *recursor of t(e order of sale. It is clearl3 intended +erel3 as co+*liance 'it( t(e re1uire+ent t(at t(e a+ount due s(all %e ascertained and t(at t(e defendant s(all %e re1uired to *a3 it. As furt(er evidence of t(is it +a3 %e o%served t(at according to t(e Code of Civil Procedure a *ersonal 4udg+ent against t(e de%tor for t(e deficienc3 is not to %e rendered until after t(e *ro*ert3 (as %een sold and t(e *roceeds a**lied to t(e +ortgage de%t 5sec. 2906 >(atever +a3 %e t(e effect in ot(er res*ects of t(e failure of t(e clerA of t(e C-I to +ail t(e *ro*er *a*ers to t(e defendant in C(ina& suc( irregularit3 could in no 'ise i+*air or defeat t(e 4urisdiction of t(e court& for in our o*inion t(at 4urisdiction rests u*on a %asis +uc( +ore secure t(an 'ould %e su**lied %3 an3 for+ of notice t(at could %e given to a resident of a foreign countr3. 2. <O. In a foreclosure case& so+e notification of t(e *roceedings to t(e nonresident o'ner& *rescri%ing t(e ti+e 'it(in '(ic( a**earance +ust %e +ade& is ever3'(ere recogniBed as essential. )o ans'er t(is necessit3 t(e statutes generall3 *rovide for *u%lication& and usuall3 in addition t(ereto& for t(e +ailing of notice to t(e defendant& if (is residence is Ano'n. It is +erel3 a +eans *rovided %3 la' '(ere%3 t(e o'ner +a3 %e ad+onis(ed %3 (is *ro*ert3 is t(e su%4ect of 4udicial *roceedings and t(at it is incu+%ent u*on (i+ to taAe suc( ste*s as (e sees fit to *rotect it. )(is +ode of notification does not involve an3 a%solute assurance t(at t(e a%sent o'ner s(all t(ere%3 receive actual notice. )(e idea u*on '(ic( t(e la' *roceeds in recogniBing t(e efficac3 of a +eans of notification '(ic( +a3 fall s(ort of actual notice is a**arentl3 t(is@ Pro*ert3 is al'a3s assu+ed to %e in t(e *ossession of its o'ner& in *erson or %3 agent$ and (e +a3 %e safel3 (eld& under certain conditions& to %e affected 'it( Ano'ledge t(at

Civil Procedure Digest

*roceedings (ave %een instituted for its conde+nation and sale. -ailure of t(e clerA to +ail t(e notice& if in fact (e did so fail in (is dut3& is not suc( as irregularit3 as a+ounts to a denial of due *rocess of la'$ and (ence in our o*inion t(at irregularit3& if *roved& 'ould not avoid t(e 4udg+ent in t(is case. <otice 'as given %3 *u%lication in a ne's*a*er and t(is is t(e onl3 for+ of notice '(ic( t(e la' unconditionall3 re1uires. Sep%"% e Opini!n MALCOLM= )i##en )(e funda+ental idea of due *rocess of la' is t(at no +an s(all %e conde+ned in (is *erson or *ro*ert3 'it(out notice and an o**ortunit3 of %eing (eard in (is defense. ,A 4udg+ent '(ic( is void u*on its face& and '(ic( re1uires onl3 in ins*ection of t(e 4udg+ent roll to de+onstrate it 'ant of vitalit3 is a dead li+% u*on t(e 4udicial tree& '(ic( s(ould %e lo**ed off& if t(e *o'er so to do e7ists. It can %ear no fruit to t(e *laintiff& %ut is a constant +enace to t(e defendant.,

A2010 Avena
8ot( De !idgel3 and Pastor entered a s*ecial a**earance and filed a +otion to dis+iss on t(e ground of lacA of 4urisdiction as t(e3 are non residents. )(e3 furt(er alleged t(at earnest efforts to'ard a co+*ro+ise (ave not %een +ade as re1uired in t(e Civil Code in suits %et'een +e+%ers of t(e sa+e fa+il3& )(e +otion 'as denied %3 .udge -erandos and (e ruled t(at t(e res*ondents 'ere *ro*erl3 su++oned. )(e su%se1uent +otion for reconsideration 'as denied %3 -erandos indicating in t(e order t(at t(e action of Hue+ada 'as for t(e recover3 of real *ro*ert3 and real rig(ts. )(e res*ondents 'ere instructed to file t(eir ans'er. De !idgel3 filed t(is action 'it( t(e Su*re+e Court. ISSUE0S >O< .udge -erandos gravel3 a%used (is discretion in den3ing De !idgel32s +otion to dis+issed %ased on t(e lacA of 4urisdiction over (er *erson. HELD NO. )(e fact t(at s(e alleged as a ground for dis+issal t(e lacA of earnest effort to co+*ro+ise is deemed as a andonment of her special appearance and as voluntar! su mission to the courts jurisdiction. Ratio. >(en t(e a**earance is %3 +otion for t(e *ur*ose of o%4ecting to t(e 4urisdiction of t(e court over t(e *erson& it +ust %e for t(e sole and se*arate *ur*ose of o%4ecting to t(e 4urisdiction of t(e court. If t(e +otion is for an3 ot(er *ur*ose t(an to o%4ect to t(e 4urisdiction of t(e court over (is *erson& (e t(ere%3 su%+its (i+self to t(e 4urisdiction of t(e court& Reasoning. #ven if t(e lo'er court did not ac1uire 4urisdiction over De !idgel3& (er +otion to dis+iss 'as *ro*erl3 denied %ecause Hue+ada2s action against (er +a3%e regarded as a H,%#i in "eD '(ere jurisdiction over the person of a non.resident defendant is not necessar! and $here the service of summons is re,uired onl! for the purpose of compl!ing $ith the re,uirement of due process. E,%#i in "eD is an action et$een parties $here the direct o ject is to reach and dispose of propert! o$ed ! the parties or of some interest therein. )(e SC cited t(e PerAins case as a *recedent. In t(at case& it ruled t(at in a 1uasi in re+ action 4urisdiction over a non resident defendant is not essential. )(e service of su++ons %3 *u%lication is re1uired +erel3 to satisf3 t(e constitutional re1uire+ent of due *rocess. )(e 4udg+ent of t(e

Prof. Victoria A.

court 'ould settle t(e title to t(e *ro*erties and to t(at e7tent it *artaAes of t(e nature of 4udg+ent in re+. )(e 4udg+ent is confined to t(e res 5*ro*erties6 and no *ersonal 4udg+ent could %e rendered against t(e non resident. It s(ould %e noted t(at t(e civil case filed %3 Hue+ada is related to a testa+entar3 *roceeding as it 'as filed for t(e *ur*ose of recovering t(e *ro*erties '(ic( in t(e understanding of Hue+ada& %elonged to t(e estate of t(e "ate Pastor& Sr. and '(ic( 'ere (eld %3 De !idgel3 and (er %rot(er. Disposition. Petition is dis+issed

ACEUIRED ISSUES

JURISDICTION

OVER

THE

SPS /ONZA/A V CA @SPS ABA/ATA SCRA CA""#.O SR$ Octo%er 1?& 2004
NATURE Petition for t(e Revie' of t(e Decision and resolution of CA FACTS Octo%er 22& 1//1 O S*s A%agat filed co+*laint against S*s =onBaga for recover3 of *ossession of land in 8aclaran& ParaPa1ue issued in t(eir na+es& as o'ners. S*s A%agat alleged in t(eir co+*laint t(at t(e3 'ere t(e o'ners of a s+all (ut 5%arong %arong6 constructed on t(e lot& '(ic( 'as t(en o'ned %3 t(e govern+ent -e%ruar3 22& 1/91 O A%agat filed an a**lication for sales *atent over t(e land .anuar3 29& 1/:0 O (ut 'as gutted %3 fire and after t(at& S*s =regorio %uilt a t'o store3 (ouse on t(e *ro*ert3 'it(out t(eir consent. S*s A%agat filed a co+*laint for e4ect+ent against S*s =regorio %ut co+*laint 'as dis+issed for lacA of 4urisdiction %ecause in t(eir ans'er to t(e co+*laint& t(e S*s =regorio clai+ed o'ners(i* over t(e (ouse S*s =regorio sold (ouse to S*s =onBaga for P100&000 under a deed of conditional sale& in '(ic( S*s =regorio undertooA to secure an a'ard of t(e land %3 t(e govern+ent in favor of S*s =onBaga. In an !OA& S*s =regorio indicated t(at if t(e3 'ould not secure suc(& t(e3 'ould return P/0&000 as *a3+ent for t(e (ouse

DE MID/ELY VS FERANDOS 94 SCRA 20 AHII<O& !a3 10& 1/:5

NATURE Original Actions. Certiorari and conte+*t. FACTS Hue+ada& allegedl3 t(e illegiti+ate son of Alvaro Pastor& Sr.& 'as a**ointed as s*ecial ad+inistrator of t(e latter2s estate %3 t(e C-I of Ce%u. As suc(& (e filed a co+*laint against (is (alf si%lings& t(e s*ouses Alvaro Pastor& .r. and !aria #lena Ac(aval& and Sofia !idgel3& '(o 'ere all at t(at ti+e citiBens of S*ain and residing in t(at countr3. )(e suit also na+ed Atlas !ining as co res*ondent. )(e suit 'as to settle t(e 1uestion of o'ners(i* over certain *ro*erties and rig(ts in so+e +ining clai+s as Hue+ada %elieved t(at t(ose *ro*erties %elong to t(e estate of Alvaro Pastor& Sr. Hue+ada& on (is o'n& caused e7traterritorial service of su++ons to %e +ade t(roug( t(e De*art+ent of -oreign Affairs and t(e P(ili**ine #+%ass3 in !adrid& S*ain& '(ic( effected t(e service of t(e su++ons t(roug( registered +ail u*on De !idgel3 and Pastor& .r. at t(eir res*ective addresses in Alicante and 8arcelona.

Civil Procedure Digest

.anuar3 2& 1/?9 O 8ureau of "ands granted t(e a**lication of A%agat for a sales *atent over t(e *ro*ert3. )C) <o. 12?1?9 'as issued %3 t(e Register of Deeds in (is na+e. S*s A%agat de+anded t(at S*s =onBaga vacate t(e *ro*ert3& %ut latter refused Se*te+%er 2/& 1//2 O S*s A%agat filed a +otion for leave to file a t(ird *art3 co+*laint against t(e S*s =regorio. )C no longer resolved t(e +otion for leave to file a t(ird *art3 co+*laint - T"i%* C!," O Octo%er 10& 1//4& in favor of S*s A%agat CA O Dece+%er 1/& 1//:& affir+ed t(e decision of t(e trial court on. On t(e *lea of S*s =onBaga t(at t(e )C s(ould (ave ordered t(e S*s =regorio to refund to t(e+ t(e P/0&000.00 t(e latter (ad received as *a3+ent for t(e (ouse& CA ruled t(at a se*arate co+*laint s(ould (ave %een filed against t(e S*s =regorio& instead of a**ealing t(e decision of t(e )C. ISSUE >O< R)C and CA erred in not ordering S*s =regorio to refund to t(e+ t(e P/0&000 t(e3 (ad *aid for t(e (ouse and '(ic( t(e latter *ro+ised to do so under t(eir !e+orandu+ of Agree+ent HELD <O Ratio )(e rule is t(at a *art3 is entitled onl3 to suc( relief consistent 'it( and li+ited to t(at soug(t %3 t(e *leadings or incidental t(ereto. A trial court 'ould %e acting %e3ond its 4urisdiction if it grants relief to a *art3 %e3ond t(e sco*e of t(e *leadings. !oreover& t(e rig(t of a *art3 to recover de*ends& not on t(e *ra3er& %ut on t(e sco*e of t(e *leadings& t(e issues +ade and t(e la'. Reasoning S*s =onBaga failed to file an3 *leading against S*s =regorio for t(e enforce+ent of t(e deed of conditional sale& t(e deed of final and a%solute sale& and t(e !e+orandu+ of Agree+ent e7ecuted %3 t(e+. )(e *etitioners filed t(eir +otion for leave to file a t(ird *art3 co+*laint against t(e intervenors& S*s =regorio& and a**ended t(ereto t(eir t(ird *art3 co+*laint for inde+nit3 for an3 4udg+ent t(at +a3 %e rendered %3 t(e court against t(e+ and in favor of t(e res*ondents. ;o'ever& S*s =onBaga did not include in t(eir *ra3er t(at 4udg+ent %e rendered against t(e t(ird *art3 defendants to refund t(e P/0&000.00 *aid %3 t(e+ to t(e S*s =regorio. S*s =onBaga failed to assail t(e trial courts order of

A2010 Avena
denial in t(e a**ellate court. #ven after t(e trial court (ad granted leave to t(e S*s =regorio to intervene as *arties defendants and t(e latter filed t(eir Ans'er in Intervention& S*s =onBaga failed to file a cross clai+ against t(e intervenors for s*ecific *erfor+ance for t(e refund of t(e P/0&000.00 t(e3 (ad received fro+ t(e *etitioners under t(eir deed of conditional sale& t(e deed of final and a%solute sale and t(e +e+orandu+ of agree+ent and *a3 filing and docAet fees t(erefor. Disposition Petition is DENIED DUE COURSE. CA decision and resolution are AFFIRMED.

Prof. Victoria A.

>

SPECIFIC JURISDICTION COURTS A. SUPREME COURT E,e# i!n !& *%K

OF

in t(e action for da+ages& t(e OS= liAe'ise acted as counsel for C(aveB& '(o 'as t(en t(e Sol=en and counsel for PC==& t(e agenc3 res*onsi%le for t(e investigation of graft and corru*t *ractices of t(e !arcoses. )(e OS= filed for e7tension of ti+e to file re1uired *leading& and after'ards filed a +otion to dis+iss on %e(alf of C(aveB. Petitioner Co o%4ected to a**earance of OS= as counsel& contending t(at (e is suing C(aveB in (is *ersonal ca*acit3. OS= +anifested t(at it is aut(oriBed to re*resent C(aveB or an3 *u%lic official even if t(e said official is sued in (is *ersonal ca*acit3 *ursuant to t(e unconditional *rovisions of PD4:? '(ic( defines t(e functions of OS=& as 'ell as #O000 '(ic( +ade OS= an inde*endent agenc3 under t(e Office of t(e President R)C denied t(e *etition& t(us allo'ing t(e a**earance of OS= as counsel. It also denied t(e !-R. )(us& t(is *etition for revie' ISSUE0S 1. >O< t(e OS= (as aut(orit3 to a**ear for 5a6 a certain gov2t official in t(e PI of t(eir case %efore t(e O+%uds+an and 5%6 t(e Sol=en in a suit for da+ages arising fro+ a cri+e HELD 1. <O Ratio )(e OS= is not aut(oriBed to re*resent a *u%lic official at A<C stage of a cri+inal case or in a civil suit for da+ages arising fro+ a felon3 5a**lies to all *u%lic officials and e+*lo3ees in t(e e7ecutive& legislative and 4udicial %ranc(es6. Reasoning PD4:?11 defines t(e duties and functions of OS=@ S#C1. )(e OS= s(all re*resent t(e =ov2t of t(e P(ils& its agencies and instru+entalities and its officials and agents in an3 litigation& *roceeding& investigation or +atter re1uiring t(e services of a la'3er. 7 7 7 t(e OS= su%+its t(at since t(ere is no 1ualification& it can re*resent an3 *u%lic official 'it(out an3 1ualification or distinction in an3 litigation. Sa+e argu+ent see+s to a**l3 to a si+ilar *rovision in t(e Rev Ad+in Code 5Sec. 1991@ As *rinci*al la' officer of t(e =ov2t& t(e Sol=en s(all (ave t(e aut(orit3 to act for and re*resent t(e =ov2t & its officers and agents in an3 official investigation& *roceeding or +atter re1uiring t(e services of a la'3er6. In Anti./raft -eague v 0rtega& SC inter*reted Sec. 1991 to e+%race PI. ;o'ever& s(ould an info %e filed after& t(en OS= can no longer

URBANO V CHAVEZ 3;1 SCRA 1:2 /ANCAYCO= M%"c- 3>, 3>>B

NATURE Petition to revie' decision of R)C Pasig FACTS t(ere are 2 cases involved (ere@ a cri+inal action for violation of t(e Anti =raft and Corru*t Practices Act 5RA 001/6 and an civil action for da+ages arising fro+ a felon3 5defa+ation t(roug( a *u%lis(ed intervie' '(ere%3 C(aveB i+*uted t(at <e+esio Co 'as a close associate 5cron3Q6 of !arcos6& %ot( against Solicitor =eneral -rancisco C(aveB 5a+ong ot(ers6 in t(e cri+inal case 5filed in t(e Office of t(e O+%uds+an6& t(e Office of t(e Sol=en 5OS=6 entered its a**earance for C(aveB and t(e ot(er accused 5DI"= Sec and 2 sectoral re*s6 as far as t(e Preli+ Investigation is concerned. Ir%ano et. al. filed a s*ecial civil action for *ro(i%ition in t(e SC to en4oin t(e Sol=en and (is associates fro+ acting as counsel for C(aveB in t(e PI. )(e contention is in t(e event t(at an infor+ation is filed against t(e accused& t(e a**earance of t(e OS= in t(e PI 'ould %e in conflict 'it( its role as t(e a**ellate counsel for t(e Peo*le of t(e P(ils 5counsel at t(e first instance is t(e *rovincialE state *rosecutor6.

Civil Procedure Digest

act as counsel. )(e rationale given 'as t(at *u%lic officials are su%4ected to nu+erous suits& and t(reats of cri+inal *rosecution could sta3 t(e (and of t(e *u%lic official. OS= *rovides assurance against ti+idit3 in t(at t(e3 'ill %e dul3 re*resented %3 counsel in t(e PI. ;o'ever& t(e court declared t(is ruling a%andoned in t(is case. )(e ano+al3 in t(is ruling %eco+es o%vious '(en& in t(e event of a 4udg+ent of conviction& t(e case is %roug(t on a**eal to t(e a**ellate courts. )(e OS=& as t(e a**ellate counsel of t(e Peo*le& is e7*ected to taAe a stand against t(e accused. !ore often t(an not& it does. Accordingl3& t(ere is a clear conflict of interest (ere& and one '(ic( s+acAs of et(ical considerations& '(ere t(e OS=& as counsel for t(e *u%lic official& defends t(e latter in t(e PI& and '(ere t(e sa+e office& as a**ellate counsel of t(e Peo*le& re*resents t(e *rosecution '(en t(e case is %roug(t on a**eal. )(is ano+alous situation could not (ave %een conte+*lated and allo'ed %3 t(e la'. It is a situation '(ic( cannot %e countenanced %3 t(e Court. anot(er reason '(3 t(e OS= can2t re*resent an accused in a cri+ case@ t(e State can s*eaA and act onl3 %3 la'& '(atever it sa3s or does is la'ful& and t(at '(ic( is unla'ful is not t(e 'ord or deed of t(e state. As suc(& a *u%lic official '(o is sued cri+inall3 is actuall3 sued in (is *ersonal ca*acit3 inas+uc( as (is *rinci*al 5t(e State6 can never t(e aut(or of a 'rongful act. )(e sa+e a**lies to a suit for da+ages arising fro+ a felon3& '(ere t(e *u%lic official is (eld accounta%le for (is act$ t(e state is not lia%le. RR Re@ Huestion of "a' 5co*ied ver%ati+. )(is is all t(at is +entioned6 %ot( issues raise *ure 1uestions of la' inas+uc( as t(ere are no evidentiar3 +atters to %e evaluated %3 t(is Court. !oreover& if t(e onl3 issue is '(et(er or not t(e conclusions of t(e trial court are in consonance 'it( la' and 4uris*rudence& t(en t(e issue is a *ure 1uestion of la' 5)orres v Cu6. )(us& t(e Court resolved to consolidate %ot( Petitions and to treat t(e+ as Petitions for certiorari on *ure 1uestions of la' in accordance 'it( t(e *rovisions of t(e Rules of Court. Disposition Petition is granted.

A2010 Avena
Petition for revie' of t(e decision of t(e CA FACTS In 1/:4& Ortigas and Co. filed a co+*laint for unla'ful detainer against !a7i+o 8el+onte in t(e !unici*al Court of San .uan RiBal& *ra3ing t(at 4udg+ent %e rendered 1.6 ordering t(e defendant (is successors in interest to vacate and surrender t(e lot to *laintiff$ 2.6 declaring t(e residential %uilding constructed on t(e lot %3 defendant as forfeited in favor of *laintiff$ 0.0 conde+ing defendant to *a3 +ont(l3 rent of 5&000 fro+ .ul3 1?& 1/:1 u* to t(e ti+e (e vacates& toget(er 'it( attorne3Ds fees and e7e+*lar3 da+ages. )(e Ruled in favor of *laintiff and granted t(e relieves *ra3ed for. 8el+onte filed a +otion to dis+iss in t(e Cfi %ased on lacA of 4urisdiction on t(e *art of t(e !C. C-I denied +otion and affir+ed in totot t(e !C 4udg+ent. )(e said court also issued a 'rit of e7ecution. 8el+onte filed a *etition for certiorari and *ro(i%ition 'it( *reli+insr3 in4unction in t(e CA& assiling t(e 1.6 t(e 4urisdiction of t(e C-I andf !C$ 2.6 t(e *ro*riet3 of t(e 4udg+ent on t(e *leadings rendered %3 t(e !C$ and 0.6 t(e *ro*riet3 of t(e issuance of t(e 'rit of e7ecution issued %3 t(e C-I. )(e Ca ruled in favor of 8el+onte& (olding t(at t(e !C (as no 4urisdiction. ;ence t(e *resent *etition. ISSUES 1. >O< t(e CA (as a**ellate 4urisdiction over t(is case 2. >O< t(e !C (ad 4urisdiction to resolve t(e issues in t(e original co+*laint HELD 1. <O. Reasoning. After anal3Bing t(e issues raised %3 8el+onte %efore t(e CA& na+el3 1.6 t(e 4urisdiction of t(e C-I andf !C$ 2.6 t(e *ro*riet3 of t(e 4udg+ent on t(e *leadings rendered %3 t(e !C$ and 0.6 t(e *ro*riet3 of t(e issuance of t(e 'rit of e7ecution issued %3 t(e C-I& t(e SC (eld t(at t(e sa+e are *urel3 legal in nature. Since a**ellate 4urisdiction over cases involving *urel3 legal 1uestions is e7clusivel3 vested in t(e SC %3 Sec. 1: of t(e .udiciar3 Act 5RA 2/96& it is a**arent t(at t(e decision under revie' rendered %3 t(e CA 'it(out 4urisdiction s(ould %e set aside. 2. <O. Reasoning. >(ere a su%division o'ner seeAs not 4ust to e4ect t(e lot %u3er '(o defaulted in (is *a3+ents %ut also *ra3s t(at t(e residential %uilding

Prof. Victoria A.

3B

constructed %3 t(e %u3er %e forfeited in *laintiffDs favor& 4urisdiction over t(e case %elongs to t(e C-I not t(e !C in an e4ect+ent case. )(e issues raised %efore t(e inferior court did not onl3 involved t(e *ossession of t(e lot %ut also rig(ts and o%ligations of t(e *arties to t(e residential %uilding '(ic( under Art. 45 of t(e CC is real *ro*ert3. Aslo& *laintiffDs clai+ to t(e %ldg raises 1uestion of o'ners(i*. A C-I cannot assu+e 4urisdiction in a case a**ealed to it under S#CII Rule 40 '(ere one of t(e *arties o%4ected to its 4urisdiction. Since t(e original case 'as decided %3 t(e !C 'it(out 4urisdiction over t(e su%4ect +atter t(ereof& t(e C-I s(ould (ave dis+issed t(e cases '(en it 'as %roug(t %efore it on a**eal. Disposition. >it(out *re4udice to t(e rig(t of Ortigas to file t(e *ro*er action in t(e *ro*er court& t(e decisions of t(e CA& C-I and !C of San .uan RiBal are set aside.

JOSEFA V ZHANDON/ /R 34B>B1 SANDOVAL-/UTIERREZ= DeceD7e" ;, 9BB1

NATURE Petition for revie' on certiorari FACTS )an re*resented (i+self to %e t(e o'ner of (ard%oards and sold t(e+ to .osefa. .osefa *aid all (is o%ligations to )an. )(e (ard%oards a**arentl3 %elonged to S(andong. >(en )an failed to *a3 S(andong& it sent a de+and letter for t(e *a3+ent of t(e (ard%oards to %ot( )an and .osefa. )rial Court ruled in favor of S(andong )(e Court of A**eals affir+ed t(e trial court2s Decision. Petitioner filed a +otion for reconsideration %ut 'as denied. Petitioner ascri%es to t(e CA t(e error in affir+ing t(e ruling of t(e trial court t(at .osefa is lia%e to S(andong des*ite F);# !OI<)AI< O- #VID#<C#L s(o'ing t(at t(e3 (ad no %usiness transaction 'it( eac( ot(er and t(at it 'as )an '(o 'as solel3 res*onsi%le to S(andong for t(e *a3+ent of t(e goods. ISSUE

ORTI/AS V. CA 3B5 SCRA 393 ABAD SANTOS, 3>;3

NATURE

Civil Procedure Digest

1. >O< .osefa is lia%le to S(andong for t(e *a3+ent of t(e +erc(andise HELD 1. <O Reasoning. #vidence indicate t(at )an %oug(t t(e (ard%oards fro+ S(andong and& in turn& sold t(e+ to *etitioner. ;o'ever& %ot( t(e trial court and t(e Court of A**eals ignored t(is glaring realit3 and instead (eld t(at *etitioner *urc(ased t(e %oards directl3 fro+ res*ondent. /ene"%* R,*e @ Onl3 1uestions of la' +a3 %e entertained %3 t(e Su*re+e Court in a *etition for revie' on certiorari ECcep i!n#? 516 t(e conclusion is grounded on s*eculations& sur+ises or con4ectures$ 526 t(e inference is +anifestl3 +istaAen& a%surd or i+*ossi%le$ 506 t(ere is grave a%use of discretion$ 546 t(e 4udg+ent is %ased on a +isa**re(ension of facts$ 556 t(e findings of fact are conflicting$ 596 t(ere is no citation of s*ecific evidence on '(ic( t(e factual findings are %ased$ 5:6 t(e finding of a%sence of facts is contradicted %3 t(e *resence of evidence on record$ 5?6 t(e findings of t(e Court of A**eals are contrar3 to t(ose of t(e trial court$ 5/6 t(e Court of A**eals +anifestl3 overlooAed certain relevant and undis*uted facts t(at& if *ro*erl3 considered& 'ould 4ustif3 a different conclusion$ 5106 t(e findings of t(e Court of A**eals are %e3ond t(e issues of t(e case$ 5116 suc( findings are contrar3 to t(e ad+issions of %ot( *arties. Disposition Petition is granted.

A2010 Avena
Petition for certiorari0 FACTS Sep eD7e" 34, 3>;B? acting on t(e evidence *resented %3 t(e P(ili**ine Consta%ular3 co++ander at ;inigaran& <egros Occidental& t(e C-I of t(at *rovince issued a searc( 'arrant for t(e searc( and seiBure of t(e deceased %odies of seven *ersons %elieved in t(e *ossession of t(e accused !ACOR Pa%lo Sola in (is (acienda at Sta. Isa%el& Ta%anAalan& <egros Occidental. -Sep eD7e" 35, 3>;B? ar+ed 'it( 'arrant& ele+ents of t(e 002nd PCEI<P Co+*an3 *roceeded to t(e *lace of Sola. Diggings +ade in a canefield 3ielded t'o co++on graves containing t(e %odies of -ernando -ernandeB& !ateo Oli+*os& Alfredo PereB& Custodio .uanica& Arsolo .uanica& Rollie Callet and 8ienvenido #+*erado. -Sep eD7e" 91 %n) Oc !7e" 3, 3>;B@ t(e PC *rovincial co++ander of <egros Occidental filed seven 5:6 se*arate co+*laints for +urder against t(e accused Pa%lo Sola& -rancisco =arcia& Ricardo =arcia& .ose 8et(oven Ca%ral& -lorendo 8aliscao and fourteen 5146 ot(er *ersons of unAno'n na+es. After due *reli+inar3 e7a+ination of t(e co+*lainantDs 'itnesses and (is ot(er evidence& t(e +unici*al court found *ro%a%le cause against t(e accused. It t(us issued an order for t(eir arrest. ;o'ever& 'it(out giving t(e *rosecution t(e o**ortunit3 to *rove t(at t(e evidence of guilt of t(e accused is strong& t(e court granted t(e+ t(e rig(t to *ost %ail for t(eir te+*orar3 release. )(e accused Pa%lo Sola& -rancisco =arcia& and .ose 8et(oven

Prof. Victoria A.

33

3 )(e one '(o filed t(is a**eal '(ic( *artaAes of a nature of certiorari are *rivate *rosecutors
-rancisco CruB and Renecio #s*iritu. )(e assertion of t(e *etitioner *rivate *rosecutors is t(at t(e3 are instituting t(e action Usu%4ect to t(e control and su*ervision of t(e -iscal. 5C. -ernando2s *refator3 state+ent states t(at t(e t'o (ave no legal standing to raise t(is *etition. Since Sol =en !endoBa never %ot(ered to 1uestion t(eir legal standing& t(e Court

C-%n+e !& 'en,e PEOPLE '. MAYOR PABLO SOLA 3B1 SCRA 1>1 @3>;3A FERNANDO, C.J.
NATURE

contented itself 'it( t(e fact t(at t(e Solicitor =eneral (as aut(orit3 to raise t(is *etition in %e(alf of t(e Peo*le of t(e P(ili**ines6

)(e Solicitor =eneral ado*ted a t'o *ronged t(rusts in t(is *etition@ 1. t(e setting aside& %3 certiorari& of t(e order of t(e !unici*al Court of Ta%anAalan& *resided over %3 .udge Rafael =asata3a& granting %ail to t(e accused in t(e cri+inal cases +entioned a%ove& and 2. t(e *etition for a c(ange of venue or *lace of trial of t(e sa+e cri+inal cases to avoid a +iscarriage of 4ustice.,

Ca%ral availed t(e+selves of t(is rig(t and (ave since %een released fro+ detention. In a *arallel develo*+ent& t(e 'itnesses in t(e +urder cases infor+ed t(e *rosecution of t(eir fears t(at if t(e trial is (eld at t(e Court of -irst Instance %ranc( in ;i+a+a3lan '(ic( is %ut 10 Ailo+eters fro+ Ta%anAalan& t(eir safet3 could %e 4eo*ardiBed. At least t'o of t(e accused are officials 'it( *o'er and influence in Ta%anAalan and t(e3 (ave %een released on %ail. In addition& +ost of t(e accused re+ained at large. Indeed& t(ere (ave %een re*orts +ade to *olice aut(orities of t(reats +ade on t(e fa+ilies of t(e 'itnesses., )(e facts alleged argue strongl3 for t(e re+edies soug(t& na+el3 a c(ange of venue and t(e cancellation of t(e %ail %onds. M%"c- 34, 3>;3@ t(is Court issued t(e follo'ing resolution@ ,)(e Court Resolved to@ 5A6 V<oteW t(e co++ent of t(e Solicitor =eneral on t(e urgent *etition for c(ange of venue and cancellation of %ail %onds& ado*ting t(e *lea of t(e *etition& na+el3& 516 t(e setting aside& %3 certiorari& of t(e order of t(e !unici*al Court of Ta%anAalan& *resided over %3 .udge Rafael =asata3a& granting %ail to t(e accused 526 t(e *etition for a c(ange of venue or *lace of trial of t(e sa+e cri+inal cases to avoid a +iscarriage of 4ustice$ 586 V)ransferW t(e venue of t(e aforesaid cri+inal cases to 8ranc( V of t(e Court of -irst Instance of <egros Occidental at 8acolod Cit3& *resided %3 #7ecutive .udge Alfonso 8aguio& considering t(at District .udge Ostervaldo #+ilia of t(e Court of -irst Instance& <egros Occidental& 8ranc( VI at ;i+a+a3lan (as an a**roved leave of a%sence covering t(e *eriod fro+ .anuar3 12 to !arc( 12& 1/?1 due to a +ild attacA of cere%ral t(ro+%osis and t(at t(e said 8ranc( V is t(e nearest court station to ;i+a+a3lan$ and 5C6 VA'aitW t(e co++ent of res*ondents on t(e *etition to cancel %ail& 'it(out *re4udice to t(e *u%lic officials concerned taAing t(e necessar3 +easures to assure t(e safet3 of t(e 'itnesses of t(e *rosecution., );IS& );# ISSI# O- A C;A<=# OV#<I# ;AS 8#CO!# !OO) A<D ACAD#!IC. )(e co++ents res*ectivel3 su%+itted %3 res*ondent -lorendo 8aliscao on !arc( 5& 1/?1& res*ondent -rancisco =arcia on !arc( 11& 1/?1 and res*ondent Pa%lo Sola on !arc( 19& 1/?1& dealt solel3 'it( t(e 1uestion of t(e cancellation of t(e %ail %onds. Suc( co++ents 'ere considered as ans'ers& 'it( t(e case t(ereafter dee+ed su%+itted for decision.

Civil Procedure Digest

ISSUE >(et(er or not t(e %ail %onds of res*ondents s(ould %e cancelled HELD C#S. Ratio. )(ere %eing a failure to a%ide %3 t(e %asic re1uire+ent t(at t(e *rosecution %e (eard in a case '(ere t(e accused is c(arged 'it( a ca*ital offense& *rior to %ail %eing granted& +ust %e decided in favor of *etitioner. )(e %ail %onds +ust %e cancelled and t(e case re+anded to t(e sala of #7ecutive .udge Alfonso 8aguio for suc( (earing. Reasoning. 8ail 'as granted to t(e accused in t(e Order of t(e !unici*al Court 'it(out (earing t(e *rosecution. )(at is to disregard t(e aut(oritative doctrine enunciated in Peo*le v. San Diego. .ustice Ca*istrano@ ,)(e 1uestion *resented %efore us is& '(et(er t(e *rosecution 'as de*rived of *rocedural due *rocess. )(e ans'er is in t(e affir+ative. >e are of t(e considered o*inion t(at '(et(er t(e +otion for %ail of a defendant '(o is in custod3 for a ca*ital offense %e resolved in a su++ar3 *roceeding or in t(e course of a regular trial& t(e *rosecution +ust %e given an o**ortunit3 to *resent& 'it(in a reasona%le ti+e& all t(e evidence t(at it +a3 desire to introduce %efore t(e court s(ould resolve t(e +otion for %ail. If& as in t(e cri+inal case involved in t(e instant s*ecial civil action& t(e *rosecution s(ould %e denied suc( an o**ortunit3& t(ere 'ould %e a violation of *rocedural due *rocess& and t(e order of t(e court granting %ail s(ould %e considered void on t(at ground., .. CardoBo@ ,);# "A>& AS ># ;AV# S##<& IS S#DI"OIS I< !AI<)AI<I<= -OR A D#-#<DA<) C;AR=#D >I); CRI!# >;A)#V#R -OR!S OPROC#DIR# AR# O- );# #SS#<C# O- A< OPPOR)I<I)C )O D#-#<D. PRIVI"#=#S SO -I<DA!#<)A" AS )O 8# I<;#R#<) I< #V#RC CO<C#P) O- A -AIR )RIA" );A) COI"D 8# ACC#P)A8"# )O );# );OI=;) O- R#ASO<A8"# !#< >I"" 8# T#P) I<VIO"A)# A<D I<VIO"A8"#& ;O>#V#R CRIS;I<= !AC 8# );# PR#SSIR# OI<CRI!I<A)I<= PROO-. 8I) .IS)IC#& );OI=; DI# )O );# ACCIS#D& IS DI# )O );# ACCIS#R A"SO. )(e conce*t of fairness +ust not %e strained till it is narro'ed to a fila+ent. >e are to Aee* t(e %alance true., t(e ver3 essence of due *rocess as t(e e+%odi+ent of 4ustice re1uires t(at t(e *rosecution %e given t(e o**ortunit3 to *rove t(at t(ere is strong evidence of guilt. It does not suffice& as asserted (erein& t(at t(e

A2010 Avena
1uestions asAed %3 t(e +unici*al 4udge %efore %ail 'as granted could %e c(aracteriBed as searc(ing. )(e fact did not cure an infir+it3 of a 4urisdictional c(aracter. ON CHAN/E OF VENUE? )(e constitution is 1uite e7*licit. )(e Su*re+e Court could order ,a c(ange of venue or *lace of trial to avoid a +iscarriage of 4ustice., Peo*le v. =utierreB& ..8.". Re3es@ "1to compel the prosecution to proceed to trial in a localit! $here its $itnesses $ill not e at li ert! to reveal $hat the! 'no$ is to ma'e a moc'er! of the judicial process# and to etra! the ver! purpose for $hich courts have een esta lished. )(e e7ercise %3 t(is ;onora%le Court of its a%ove constitutional *o'er in t(is case 'ill %e a**ro*riate. )(e 'itnesses in t(e case are fearful for t(eir lives. )(e3 are afraid t(e3 'ould %e Ailled on t(eir 'a3 to or fro+ ;i+a+a3lan during an3 of t(e da3s of trial. 8ecause of t(is fear& t(e3 +a3 eit(er refuse to testif3 or testif3 falsel3 to save t(eir lives. t(ere +a3 %e cases '(ere t(e fear& o%4ectivel3 vie'ed& +a3& to so+e individuals& %e less t(an terrif3ing& %ut t(e 1uestion +ust al'a3s %e t(e effect it (as on t(e 'itnesses '(o 'ill testif3. )(e *ri+ordial ai+ and intent of t(e Constitution +ust ever %e Ae*t in +ind. In case of dou%t& it s(ould %e resolved in favor of a c(ange of venue& Dispositive. >;#R#-OR#& t(e assailed order of 4udge Rafael =asata3a granting %ail to *rivate res*ondents is nullified& set aside& and declared to %e 'it(out force and effect. #7ecutive .udge Alfonso 8aguio of t(e Court of -irst Instance of <egros Occidental& to '(ose sala t(e cases (ad %een transferred %3 virtue of t(e resolution of t(is Court of !arc( 5& 1/?1& is directed fort('it( to (ear t(e *etitions for %ail of *rivate res*ondents& 'it( t(e *rosecution %eing dul3 (eard on t(e 1uestion of '(et(er or not t(e evidence of guilt against t(e res*ondents is strong. )(is decision is i++ediatel3 e7ecutor3. <o costs. NATURE

Prof. Victoria A.

39

Petition for certiorari '(ic( ste++ed fro+ a co+*laint for illegal dis+issal filed %3 (erein *rivate res*ondent %efore t(e <"RC FACTS . Private res*ondent alleges t(at (e started 'orAing as O*erations !anager of *etitioner St. !artin -uneral ;o+e on -e%ruar3 9& 1//5. ;o'ever& t(ere 'as no contract of e+*lo3+ent e7ecuted %et'een (i+ and *etitioner nor 'as (is na+e included in t(e se+i +ont(l3 *a3roll. On .anuar3 22& 1//9& (e 'as dis+issed fro+ (is e+*lo3+ent for allegedl3 +isa**ro*riating P0?&000.00 '(ic( 'as intended for *a3+ent %3 *etitioner of its value added ta7 5VA)6 to t(e 8ureau of Internal Revenue 58IR6. Petitioner on t(e ot(er (and clai+s t(at *rivate res*ondent 'as not its e+*lo3ee %ut onl3 t(e uncle of A+elita !ala%ed& t(e o'ner of *etitioner St. !artinDs -uneral ;o+e. So+eti+e in 1//5& *rivate res*ondent& '(o 'as for+erl3 'orAing as an overseas contract 'orAer& asAed for financial assistance fro+ t(e +ot(er of A+elita. Since t(en& as an indication of gratitude& *rivate res*ondent voluntaril3 (el*ed t(e +ot(er of A+elita in overseeing t(e %usiness. In .anuar3 1//9& t(e +ot(er of A+elita *assed a'a3& so t(e latter t(en tooA over t(e +anage+ent of t(e %usiness. S(e t(en discovered t(at t(ere 'ere arrears in t(e *a3+ent of ta7es and ot(er govern+ent fees& alt(oug( t(e records *ur*orted to s(o' t(at t(e sa+e 'ere alread3 *aid. A+elita t(en +ade so+e c(anges in t(e %usiness o*eration and *rivate res*ondent and (is 'ife 'ere no longer allo'ed to *artici*ate in t(e +anage+ent t(ereof. As a conse1uence& t(e latter filed a co+*laint c(arging t(at *etitioner (ad illegall3 ter+inated (is e+*lo3+ent. Private res*ondent a**ealed to t(e <"RC. On .une 10& 1//:& t(e <"RC rendered a resolution setting aside t(e 1uestioned decision and re+anding t(e case to t(e la%or ar%iter for i++ediate a**ro*riate *roceedings. Petitioner t(en filed a +otion for reconsideration '(ic( 'as denied %3 t(e <"RC in its resolution dated August 1?& 1//: for lacA of +erit& (ence t(e *resent *etition alleging t(at t(e <"RC co++itted grave a%use of discretion. ISSUE >O< t(e SC s(ould entertain t(e *resent *etition

B. COURT OF APPEALS ST MARTIN FUNERAL HOME VS NLRC =.R. <o. 100?99 R#=A"ADO$ Se*t 19& 1//?

Civil Procedure Digest

A2010 Avena
contrar3& as (e co++enda%l3 and realisticall3 e+*(asiBed& t(at *rocedure 'ould %e advantageous to t(e aggrieved *art3 on t(is reasoning@ i.e.& & to allo' t(ese cases to %e a**ealed to t(e Court of A**eals 'ould give litigants t(e advantage to (ave all t(e evidence on record %e ree7a+ined and re'eig(ed after '(ic( t(e findings of facts and conclusions of said %odies are corres*ondingl3 affir+ed& +odified or reversed. Inder suc( guarantee& t(e Su*re+e Court can t(en a**l3 strictl3 t(e a7io+ t(at factual findings of t(e Court of A**eals are final and +a3 not %e reversed on a**eal to t(e Su*re+e Court. A *erusal of t(e records 'ill reveal a**eals '(ic( are factual in nature and +a3& t(erefore& %e dis+issed outrig(t %3 +inute resolutions. >(ile t(e SC does not 'is( to intrude into t(e Congressional s*(ere on t(e +atter of t(e 'isdo+ of a la'& on t(is score it adds t(e furt(er o%servations t(at t(ere is a gro'ing nu+%er of la%or cases %eing elevated to t(is Court '(ic(& not %eing a trier of fact& (as at ti+es %een constrained to re+and t(e case to t(e <"RC for resolution of unclear or a+%iguous factual findings$ t(at t(e Court of A**eals is *rocedurall3 e1ui**ed for t(at *ur*ose& aside fro+ t(e increased nu+%er of its co+*onent divisions$ and t(at t(ere is undenia%l3 an i+*erative need for e7*editious action on la%or cases as a +a4or as*ect of constitutional *rotection to la%or. )(is case t(erefore& reiterate t(e 4udicial *olic3 t(at t(e Su*re+e Court 'ill not entertain direct resort to it unless t(e redress desired cannot %e o%tained in t(e a**ro*riate courts or '(ere e7ce*tional and co+*elling circu+stances 4ustif3 avail+ent of a re+ed3 'it(in and calling for t(e e7ercise of its *ri+ar3 4urisdiction. Disposition.)(e instant *etition for certiorari is (ere%3 R#!A<D#D& and all *ertinent records t(ereof ordered to %e -OR>ARD#D& to t(e Court of A**eals for a**ro*riate action and dis*osition consistent 'it( t(e vie's and ruling (erein set fort(& 'it(out *ronounce+ent as to costs.

Prof. Victoria A.
PHILIPPINES %n) PRODUCERS PROPERTIES, INC. 9B; SCRA 549 DAVIDE= M%( ;, 3>>9

31

HELD <O 5s(ould %e re+anded to CA6 Ratio. All references in t(e a+ended Sec / of 8P <o. 12/ to su**osed a**eals fro+ t(e <"RC to t(e SC are inter*reted and (ere%3 declared to +ean and refer to *etitions for certiorari under Rule 95. Conse1uentl3& all suc( *etitions s(ould (encefort( %e initiall3 filed in t(e CA in strict o%servance of t(e doctrine on t(e (ierarc(3 of courts as t(e a**ro*riate foru+ for t(e relief desired. Reasoning. It 'ill %e noted t(at *aragra*( 506& Section / of 8.P. <o. 12/ no' grants e7clusive a**ellate 4urisdiction to t(e Court of A**eals over all final ad4udications of t(e Regional )rial Courts and t(e 1uasi 4udicial agencies generall3 or s*ecificall3 referred to t(erein e7ce*t& a+ong ot(ers& ,t(ose falling 'it(in t(e a**ellate 4urisdiction of t(e Su*re+e Court in accordance 'it( . . . t(e "a%or Code of t(e P(ili**ines under Presidential Decree <o. 442& as a+ended& . . . ., )(is 'ould necessaril3 contradict '(at (as %een ruled and said all along t(at a**eal does not lie fro+ decisions of t(e <"RC. Cet& under suc( e7ce*ting clause literall3 construed& t(e a**eal fro+ t(e <"RC cannot %e %roug(t to t(e Court of A**eals& %ut to t(is Court %3 necessar3 i+*lication. )(e sa+e e7ce*tive clause furt(er confuses t(e situation %3 declaring t(at t(e Court of A**eals (as no a**ellate 4urisdiction over decisions falling 'it(in t(e a**ellate 4urisdiction of t(e Su*re+e Court in accordance 'it( t(e Constitution& t(e *rovisions of 8.P. <o. 12/& and t(ose s*ecified cases in Section 1: of t(e .udiciar3 Act of 1/4?. )(ese cases can& of course& %e *ro*erl3 e7cluded fro+ t(e e7clusive a**ellate 4urisdiction of t(e Court of A**eals. ;o'ever& %ecause of t(e afore+entioned a+end+ent %3 trans*osition& also su**osedl3 e7cluded are cases falling 'it(in t(e a**ellate 4urisdiction of t(e Su*re+e Court in accordance 'it( t(e "a%or Code. )(is is illogical and i+*ractica%le& and Congress could not (ave intended t(at *rocedural gaffe& since t(ere are no cases in t(e "a%or Code t(e decisions& resolutions& orders or a'ards '(erein are 'it(in t(e a**ellate 4urisdiction of t(e Su*re+e Court or of an3 ot(er court for t(at +atter. Incidentall3& it 'as noted %3 t(e s*onsor t(erein t(at so+e 1uarters 'ere of t(e o*inion t(at recourse fro+ t(e <"RC to t(e Court of A**eals as an initial ste* in t(e *rocess of 4udicial revie' 'ould %e circuitous and 'ould *rolong t(e *roceedings. On t(e

NATURE )(e co++on origin of t(ese cases is Producers 8anA of t(e P(ili**ines and Producers Pro*erties& Inc. vs C8& .ose 8. -ernandeB. .r. and t(e !onetar3 8oard filed %efore t(e !aAati R)C. t(e consolidation of t(e 2 cases 'as ordered@ FIRST CASE a *etition for revie' on certiorari of t(e decision and t(e resolution of t(e CA. )(e i+*ugned decision u*(eld t(e Order of res*ondent .udge =uadiB granting t(e +otion for issuance of a 'rit of *reli+inar3 in4unction en4oining C8& -ernandeB and t(e !onetar3 8oard fro+ i+*le+enting !onetar3 8oard Resolutions <o. 94/ and <o. :51& or fro+ taAing t(e t(reatened a**ro*riate alternative action and t(e Order in t(e sa+e case den3ing *etitionersD +otion to dis+iss and vacate said in4unction. )(e c(allenged resolution& on t(e ot(er (and& denied *etitionersD !-R. SECOND CASE a *etition for revie' directed *rinci*all3 against t(e decision of t(e CA dis+issing t(e *etition t(erein filed and sustained t(e various Orders of t(e res*ondent .udge& %ut directed t(e *laintiffs t(erein to a+end t(e a+ended co+*laint %3 stating in its *ra3er t(e s*ecific a+ount of da+ages '(ic( Producers 8anA of t(e P(ili**ines 5P8P6 clai+s to (ave sustained as a result of losses of o*eration and t(e conservatorDs %anA frauds and a%uses$ t(e ClerA of Court 'as also ordered to deter+ine t(e a+ount of filing fees '(ic( s(ould %e *aid %3 t(e *laintiffs 'it(in t(e a**lica%le *rescri*tive or regle+entar3 *eriod. FACTS Petitioners clai+ t(at during t(e regular e7a+ination of t(e P8P& C8 e7a+iners stu+%led u*on so+e (ig(l3 1uestiona%le loans '(ic( (ad %een e7tended %3 t(e P8P +anage+ent to several entities. I*on furt(er e7a+ination& it 'as discovered t(at t(ese loans& totalling a**ro7i+atel3 P000 +illion& 'ere ,fictitious, as t(e3 'ere e7tended& 'it(out collateral& to certain interests related to P8P o'ners t(e+selves. Said loans 'ere dee+ed to %e ano+alous *articularl3 %ecause t(e total *aid in ca*ital of P8P at t(at ti+e 'as onl3 P 140.544 +illion. )(is +eans t(at t(e entire *aid in ca*ital of t(e %anA& toget(er 'it( so+e P190 +illion of

C. RTC CENTRAL BANF OF THE PHILIPPINES %n) HON. JOSE B. FERNANDEZ, VS CA, JUD/E TEOFILO /UADIZ, JR., PRODUCERS BANF OF THE

Civil Procedure Digest

de*ositorsD +one3& 'as utiliBed %3 P8P +anage+ent to fund t(ese unsecured loans. at t(e (eig(t of t(e controvers3 surrounding t(e discover3 of t(e ano+alous loans& several %lind ite+s a%out a fa+il3 o'ned %anA in 8inondo '(ic( granted fictitious loans to its stocA(olders a**eared in +a4or ne's*a*ers. )(ese ne's ite+s triggered a %anA run in P8P '(ic( resulted in continuous over dra'ings on t(e %anADs de+and de*osit account 'it( t(e C8. On t(e %asis of t(e re*ort su%+itted %3 t(e Su*ervision and #7a+ination Sector& De*art+ent I of t(e C8& t(e !onetar3 8oard 5!8 *laced P8P under conservators(i*. P8P nonet(eless re1uested t(at t(e sa+e %e lifted %3 t(e C8. Conse1uentl3& t(e !8 directed t(e *rinci*al stocA(olders of P8P to increase its ca*ital accounts %3 suc( an a+ount t(at 'ould %e necessar3 for t(e eli+ination of P8PDs negative net 'ort(. C8 senior de*ut3 =overnor =a%riel Singson infor+ed P8P t(at t(e C8 'ould %e 'illing to lift t(e conservators(i* under t(e follo'ing conditions@ 5a6 P8PDs unsecured overdraft 'it( t(e Central 8anA 'ill %e converted into an e+ergenc3 loan& to %e secured %3 sufficient collateral 5%6 A co+*troller for P8P and an3 nu+%er of %anA e7a+iners dee+ed necessar3 to oversee P8PDs o*erations s(all %e designated %3 t(e C8& under ter+s of reference to %e deter+ined %3 t(e =overnor$ 5c6 A letter fro+ t(e !anage+ent of P8P aut(oriBing t(e C8 to auto+aticall3 return clearing ite+s t(at 'ould result in an overdraft in its C8 account s(all %e su%+itted to t(e C8. t(e !8 a**roved t(e consolidation of P8PDs ot(er unsecured o%ligations to t(e C8 'it( its overdraft and aut(oriBing t(e conversion t(ereof into an e+ergenc3 loan. )(e sa+e resolution aut(oriBed t(e C8 =overnor to lift t(e conservators(i* and return P8PDs +anage+ent to its *rinci*al stocA(olders u*on co+*letion of t(e docu+entation and full collateraliBation of t(e e+ergenc3 loan& %ut directed P8P to *a3 t(e e+ergenc3 loan in 5 e1ual annual install+ents& 'it( interest and *enalt3 rates at !RR 1?0 da3s *lus 4?J *er annu+& and li1uidated da+ages of 5J for dela3ed *a3+ents. P8P su%+itted a re(a%ilitation *lan to t(e C8. Alt(oug( said *ro*osal 'as e7*lored and discussed& no *rogra+ acce*ta%le to %ot( t(e C8 and PPI 'as arrived at %ecause of disagree+ents on certain +atters suc( as interest rates& *enalties and li1uidated da+ages. <o ot(er re(a%ilitation *rogra+

A2010 Avena
'as su%+itted %3 P8P for al+ost 0 3ears$ as a result t(ereof& its overdrafts 'it( t(e C8 continued to accu+ulate. Conse1uentl3& *er Resolution <o. 94/& t(e C8 !onetar3 8oard decided to a**rove in *rinci*le '(at it considered a via%le re(a%ilitation *rogra+ for P8P. )(ere %eing no res*onse fro+ %ot( P8P and PPI on t(e *ro*osed re(a%ilitation *lan& t(e !8 issued Resolution <o. :51 on : August 1/?: instructing C8 +anage+ent to advise t(e %anA t(at@ a. )(e C8 conservators(i* over P8P +a3 %e lifted onl3 after P8P s(all (ave identified t(e ne' grou* of stocA(olders '(o 'ill *ut in ne' ca*ital in P8P and after t(e !onetar3 8oard s(all (ave considered suc( ne' stocA(olders as acce*ta%le$ and %. )(e stocA(olders of P8P (ave to decide '(et(er or not to acce*t t(e ter+s of t(e re(a%ilitation *lan as *rovided under Resolution <o. 94/ 'it(in one 'eeA fro+ recei*t of notice (ereof and if suc( ter+s are not acce*ta%le to t(e+& t(e Central 8anA 'ill taAe a**ro*riate alternative action on t(e +atter$ . . . t(e P8P& 'it(out res*onding to t(e co++unications of t(e C8& filed a co+*laint against t(e C8& t(e !8 and C8 =overnor .ose 8. -ernandeB& .r. )(e co+*laint& alleged t(at t(e conservators(i* 'as un'arranted& ill +otivated& illegal& utterl3 unnecessar3 and un4ustified$ t(at t(e a**oint+ent of t(e conservator 'as ar%itrar3$ t(at (erein *etitioners acted in %ad fait($ t(at t(e C8 designated conservators co++itted %anA frauds and a%uses$ t(at t(e C8 is guilt3 of *ro+issor3 esto**el$ and t(at %3 reason of t(e conservators(i*& it suffered losses. It *ra3ed for a 4udicial revie' of t(e !8 Resolutions and t(e issuance of a )RO. )(e case 'as raffled to 8ranc( 14: of !aAati R)C court '(ic( 'as t(en *resided over %3 res*ondent .udge. res*ondent .udge issued a )RO$ Su%se1uentl3& (e issued an Order en4oining defendant *etitioners or an3 of t(eir agents fro+ i+*le+enting !onetar3 8oard Resolutions <os. 94/ and :51 or fro+ taAing t(e t(reatened ,a**ro*riate alternative action, including e7clusion of *laintiff %anA fro+ settle+ent of clearing %alances at t(e Central 8anA clearing (ouse or an3 ot(er action t(at 'ill distur% t(e status 1uo or t(e via%ilit3 of *laintiff %anA during t(e *endenc3 of t(is case conditioned u*on t(e *osting of a %ond in t(e a+ount of P2&000&000.00. P8P filed t(e A+ended Co+*laint i+*leading PPI as an additional *laintiff. <o ne' allegations or causes

Prof. Victoria A.

3:

of action for said *laintiff 'ere +ade. Petitioners filed a !otion to Dis+iss t(e A+ended Co+*laint. t(e res*ondent .udge (anded do'n an Order den3ing t(e +otion to dis+iss on t(e follo'ing grounds@ 5a6 t(e a+ended co+*laint alleges ulti+ate facts s(o'ing t(at *laintiff (as a rig(t and t(at suc( a rig(t (as %een violated %3 defendant$ t(e 1uestioned !8 Resolutions 'ere issued ar%itraril3 and 'it( %ad fait(& ,%eing a *art of a sc(e+e to divest *laintiffDs *resent stocA(olders of t(eir control of P8P and to a'ard t(e sa+e to t(e PDIC or its unAno'n transferees,$ and t(e aver+ents of legalit3 or illegalit3 of t(e conservators(i* are relevant to t(e cause of action since t(e co+*laint seeAs t(e lifting of t(e conservators(i*$ 5%6 >(ile it is true t(at under Section 2? A of t(e Central 8anA Act t(e conservator taAes over t(e +anage+ent of a %anA& t(e 8oard of Directors of suc( %anA is not *ro(i%ited fro+ filing a suit to lift t(e conservators(i* and fro+ 1uestioning t(e validit3 of %ot( t(e conservatorDs fraudulent acts and a%uses and its *rinci*alDs 5!86 ar%itrar3 action$ %esides& PPI is no' a *art3 *laintiff in t(e action$ and 5c6 *laintiffs (ave *aid t(e correct filing fees since ,t(e value of t(e case cannot %e esti+ated., FIR+T C!+, Ina%le to acce*t t(e a%ove Order& C8 and -ernandeB filed 'it( res*ondent CA a *etition for certiorari 'it( *reli+inar3 in4unction to annul t(e Orders of t(e res*ondent .udge& restrain t(e i+*le+entation of t(e sa+e and nullif3 t(e 'rit of *reli+inar3 in4unction. )(e3 contend t(erein t(at@ 1. )(e trial courtDs in4unctive order and 'rit are ano+alous and illegal %ecause t(e3 are directed against C8 acts and +easures '(ic( constitute no invasion of *laintiffDs rig(ts$ and 2. )(e co+*laint filed 'as& on its face& dis+issi%le@ 5a6 for failure to state a cause of action& 5%6 for %eing unaut(oriBed %3 t(e *art3 in '(ose na+e it *ur*orts to (ave %een filed& and 5c6 for failure of t(e *ur*orted *laintiff to *a3 t(e re1uired filing fees. CA dis+issed t(e *etition for lacA of +erit& ruling t(at t(e C8Ds sudden and unti+el3 announce+ent of t(e conservators(i* over P8P eroded t(e confidence '(ic( t(e %anAing *u%lic (ad (it(erto re*osed on t(e %anA and resulted in t(e %anA run$ it t(en concluded t(at '(en t(e C8 ,*ere+*toril3 and illti+el3 announced, t(e conservators(i*& P8P 'as not given an o**ortunit3 to %e (eard since t(e C8 ar%itraril3 %rus(ed aside ad+inistrative due *rocess not'it(standing P8PDs (aving sufficientl3 esta%lis(ed its in(erent cor*orate rig(t to autono+ousl3 *erfor+ its %anAing activities 'it(out undue govern+ental

Civil Procedure Digest

interference t(at 'ould in effect divest its stocA(olders of t(eir control over t(e o*erations of t(e %anA., It furt(er (eld t(at t(e c(allenged resolutions of t(e !8 are not 4ust advisor3 in c(aracter ,%ecause t(e sa+e soug(t to i+*ose u*on t(e res*ondent %anA *etitionersD govern+ental acts t(at 'ere s*ecificall3 designed and e7ecuted to devise a sc(e+e t(at 'ould irre*ara%l3 divest fro+ t(e stocA(olders of t(e res*ondent %anA control of t(e sa+e., On t(e issue of t(e non *a3+ent of t(e correct docAet fees& t(e said court& in ruling t(at t(e correct a+ount 'as *aid& said t(at ,t(e instant case is inca*a%le of *ecuniar3 esti+ation %ecause t(e value of t(e losses incurred %3 t(e res*ondent %anA cannot %e cali%rated nor *inned do'n to a s*ecific a+ount in vie' of t(e da+age t(at +a3 %e caused %3 t(e a**oint+ent of a conservator to its good'ill and standing in t(e co++unit3., *etitioners filed 'it( t(is Court t(e instant *etition for revie'. It is alleged t(erein t(at t(e res*ondent Court co++itted grave a%use of discretion in@ 516 Ignoring *etitionersD contention t(at since P8P did not *a3 t(e correct filing fees& t(e trial court did not ac1uire 4urisdiction over t(e case$ (ence& *ursuant to !anc(ester Develo*+ent Cor*.& et al. vs. Court of A**eals& et al.& t(e co+*laint s(ould (ave %een dis+issed for lacA of 4urisdiction on t(e *art of t(e court$ 526 . . . ruling on t(e *ro*riet3 or i+*ro*riet3 of t(e conservators(i* as a %asis for deter+ining t(e e7istence of a cause of action since t(e a+ended co+*laint does not seeA t(e annul+ent or lifting of t(e conservators(i*$ 506 . . . not (olding t(at t(e a+ended co+*laint s(ould (ave %een dis+issed %ecause it 'as filed in t(e na+e of P8P 'it(out t(e aut(orit3 of its conservator$ and 546 . . . not setting aside t(e Order of t(e trial court granting t(e issuance of a 'rit of *reli+inar3 in4unction '(ic( unla'full3 restrained t(e C8 fro+ e7ercising its +andated res*onsi%ilities and effectivel3 co+*elled it to allo' t(e P8P to continue incurring overdrafts 'it( it. *rivate res*ondents argue t(at t(e !anc(ester rule is not a**lica%le in t(e case at %ar %ecause '(at is *ri+aril3 soug(t for (erein is a 'rit of in4unction and not an a'ard for da+ages$ it is furt(er alleged t(at an order den3ing a +otion to dis+iss is neit(er a**eala%le nor %e +ade t(e *ro*er su%4ect of a *etition for certiorari a%sent a clear s(o'ing of lacA of 4urisdiction or grave a%use of discretion.

A2010 Avena
+,CO-D C!+, Pursuant to t(e *o'ers and aut(orit3 conferred u*on (er %3 t(e Central 8anA& Att3. "eonida )ansinsin #ncarnacion& in (er ca*acit3 as conservator& instituted refor+s ai+ed at +aAing P8P +ore via%le. >it( t(is *ur*ose in +ind& s(e started reorganiBing t(e %anADs *ersonnel and co++ittees. In order to *revent (er fro+ continuing 'it( t(e reorganiBation& P8P filed an O+ni%us !otion asAing t(e trial court for an order@ 5a6 reinstating P8P officers to t(eir original *ositions and restoring t(e %anADs standing co++ittees to t(eir res*ective co+*ositions *rior to said reorganiBation$ 5%6 en4oining t(e lease of an3 *ortion of t(e %anADs s*ace in Producers 8anA Centre %uilding to t(ird *arties and t(e relocation of de*art+entsEoffices of P8P as 'as conte+*lated$ and 5c6 to (old& after an o**ortunit3 to %e (eard is given (er& said conservator in conte+*t of court for diso%edience of and resistance to t(e 'rit of in4unction. An o**osition to t(e conte+*t c(arge 'as later filed %3 said *etitioner. res*ondent .udge issued an Order 5a6 re1uiring conservator )ansinsin #ncarnacion to reinstate P8P officers to t(eir original *ositions *rior to t(e reorganiBation of t(e %anADs *ersonnel and restore P8PDs standing co++ittees to t(eir original co+*ositions& and 5%6 restraining (er fro+ leasing out to t(ird *arties an3 *ortion of P8PDs s*ace in t(e Producers 8anA Centre %uilding. A second Order directed )ansinsin #ncarnacion to *u%lis( t(e financial state+ent of P8P On several occasions t(ereafter& conservator )ansinsin #ncarnacion caused t(e *u%lication of P8PDs financial state+ent as re1uired %3 regulations& 'it(out& (o'ever& carr3ing t(e ite+s enu+erated %3 t(e trial court as ,sus*ense accounts., Conse1uentl3& conte+*t c(arges 'ere filed against (er& of '(ic( s(e 'as found guilt3. )ansinsin #ncarnacion filed a *etition for certiorari against res*ondent .udge& ;enr3 ". Co and t(e la' fir+ of Huisu+%ing& )orres and #vangelista. S(e *ra3s t(erein for 4udg+ent declaring res*ondent 4udge to %e 'it(out 4urisdiction to entertain %ot( t(e co+*laint and a+ended co+*laint$ declaring null and void all (is orders& s*eciall3 t(e conte+*t orders$ and finding res*ondent .udge and res*ondent la'3ers guilt3 of violating t(eir res*ective oat(s of office. In (er !e+orandu+ su%+itted to t(e CA& )ansinsin #ncarnacion alleged t(at@ 516 res*ondent .udge (as no 4urisdiction %ecause t(e filing of t(e case 'as not aut(oriBed %3 t(e *etitioner or t(e conservator in

Prof. Victoria A.

34

violation of Section 2? A of R.A. <o. 295& as a+ended& it 'as filed after t(e ten 5106 da3 *eriod *rescri%ed %3 Section 2/ of R.A. <o. 295& as a+ended& and t(e correct docAet fees 'ere not *aid$ 526 res*ondent .udge illegall3 ordered (er to return to PPI t(e ad+inistration of t(e %anADs t(ree 506 *ro*erties& contrar3 to (is o'n 'rit of *reli+inar3 in4unction and earlier order to +aAe t(e %anA via%le& and to *u%lis( t(e alleged ,sus*ense accounts, contrar3 to Section 2? A of R.A. <o. 295& as a+ended& t(e 'rit of *reli+inar3 in4unction and (er constitutional rig(t to silence$ 506 res*ondent .udge erred in declaring (er in conte+*t of court not'it(standing (is lacA of 4urisdiction over t(e case and failure to set an3 date for t(e (earing and rece*tion of evidence& in violation of (er rig(t to due *rocess of la'$ and 546 res*ondents .udge and la'3ers are ad+inistrativel3 lia%le for t(eir grossl3 illegal actuations and for de*riving t(e =overn+ent of at least P10.2 +illion in filing fees. In dis*osing of t(e issues raised& res*ondent Court +erel3 ado*ted 'it( a**roval t(e ruling of t(e res*ondent .udge on t(e 1uestion of 4urisdiction& sustaining t(e res*ondent .udgeDs ruling. As to t(e filing of t(e co+*laint after t(e la*se of t(e 10 da3 *eriod *rovided for in Section 2/ of R.A. <o. 295& it ruled t(at t(e Section does not a**l3 %ecause t(e co+*laint essentiall3 seeAs to co+*el t(e conservator to *erfor+ (is duties and refers to circu+stances and incidents '(ic( trans*ired after said 10 da3 *eriod. On t(e issue of lacA of 4urisdiction for non *a3+ent of correct filing fees& to '(ic( an e7ce*tion 'as +ade in t(e dis*ositive *ortion& t(e res*ondent Court found t(e sa+e to %e ,*artl3, +eritorious. It agreed 'it( *etitioner t(at '(ile t(e ot(er losses and da+ages soug(t to %e recovered are inca*a%le of *ecuniar3 esti+ation& t(e da+ages inflicted on P8P due to losses of o*eration and t(e conservatorDs %anA frauds and a%uses 'ere in fact *egged at P10?&4:/&::1.00 in *aragra*( 29 of t(e a+ended co+*laint. )(is s*ecific a+ount& (o'ever& s(ould (ave %een stated in t(e *ra3er of t(e co+*laint. It also (eld t(at t(e !anc(ester case ,(as %een legall3 construed in t(e su%se1uent case of Sun Insurance Office "td. and t(e case of -ili*inas S(ell Petroleu+ Cor*. to t(e effect t(at a**l3ing t(e doctrine initiated in t(e case of !anc(ester& toget(er 'it( said su%se1uent t(ereto 5sic6& *laintiffs in t(e original case s(ould %e given a reasona%le ti+e to a+end t(eir co+*laint& +ore *articularl3& to state in t(eir

Civil Procedure Digest

*ra3er in t(e a+ended co+*laint t(e s*ecific a+ount of da+ages . . ., On t(e orders of conte+*t and t(e reasons t(erefor& res*ondent Court +erel3 stated@ . . . =enerall3& '(en t(e court (as 4urisdiction over t(e su%4ect +atter and of t(e *erson& decisions u*on or 1uestions *ertinent to t(e cause are decisions 'it(in its 4urisdiction& and (o'ever& irregular or erroneous t(e3 +a3 %e& t(e3 cannot %e corrected %3 certiorari. -inall3& on t(e ad+inistrative lia%ilit3 of t(e res*ondent .udge and t(e la'3ers& t(e res*ondent Court declared t(e clai+ to %e 'it(out +erit. ISSUE >O< t(e res*ondent .udge co++itted grave a%use of discretion a+ounting to lacA of 4urisdiction in not dis+issing t(e Civil Case on t(e ground of non *a3+ent of t(e correct a+ount of docAet fee in violation of t(e rule enunciated in 2anchester 3evelopment Corp. vs. Court of Appeals# et al. HELD Ratio )(e action +ust %e dis+issed for failure of t(e *laintiffs t(erein to *a3 t(e correct docAet fees& *ursuant to 2anchester. )(e said case 'as decided %3 t(is Court on : !a3 1/?:& e7actl3 0 +ont(s and 20 da3s %efore t(e filing of t(e original co+*laint and 5 +ont(s and 1? da3s %efore t(e filing of t(e A+ended Co+*laint. It 'as ruled t(erein t(at@ The Court ac*uires jurisdiction over an% case onl% upon the pa%$ent of the prescri&ed doc'et fee. !n a$end$ent of the co$plaint or si$ilar pleading will not there&% vest jurisdiction in the Court( $uch less the pa%$ent of the doc'et fee &ased on the a$ounts sought in the a$ended pleading. Reasoning )(e res*ondent .udge& in ruling t(at P8P and PPI (ad *aid t(e correct docAet fee of P102.00& said t(at ,t(e value of t(e case cannot %e esti+ated, since '(at is soug(t is an in4unction against t(e enforce+ent of t(e c(allenged resolutions of t(e !8$ in s(ort& t(e clai+ for da+ages is +erel3 incidental. I*on t(e ot(er (and& res*ondent Court& in its Resolution& ruled t(at t(e case is ,inca*a%le of *ecuniar3 esti+ation, %ecause t(e value of t(e losses incurred %3 t(e P8P ,cannot %e cali%rated nor *inned do'n to a s*ecific a+ount in vie' of t(e da+age t(at +a3 %e caused %3 t(e a**oint+ent of a conservator to its good'ill and standing in t(e co++unit3.,

A2010 Avena
8ot( conclusions are unfounded and are t(e result of a +isa**re(ension of t(e allegations and causes of action in %ot( t(e co+*laint and a+ended co+*laint. >(ile P8P cleverl3 'orded its co+*laint to +aAe it a**ear as one *rinci*all3 for in4unction& deli%eratel3 o+itting t(e clai+ for da+ages as a s*ecific cause of action& a careful e7a+ination t(ereof %ears t(at t(e sa+e is in realit3 an action for da+ages arising out of t(e alleged ,un'arranted& ill +otivated and illegal conservators(i*&, or a conservators(i* '(ic( ,'as utterl3 unnecessar3 and un4ustified&, and t(e ,ar%itrar3, a**oint+ent of a conservator. )(us& as stated earlier& it devoted t(e %ulA of its *etition to detailed events& occurrences and transactions in su**ort t(ereof and *atientl3 enu+erated t(e losses it sustained and suffered. )(ese are t(e ver3 da+ages referred to in t(e *ra3er@ Fto full3 re*air t(e da+ages inflicted on P8P consisting of losses of o*eration and t(e conservatorsD %anA frauds and a%usesL %ut not s*ecified t(erein. )o t(is CourtDs +ind& t(is 'as done to evade t(e *a3+ent of t(e corres*onding filing fees '(ic(& as co+*uted %3 *etitioner on t(e %asis alone of t(e s*ecified losses of P10?&4:/&::1.00& 'ould a+ount to a%out P 40:&000.00. )(e P8P t(en clearl3 acted 'it( +anifest %ad fait( in resorting to t(e foregoing clever strateg3 to avoid *a3ing t(e correct filing fees. )(e *ronounce+ents in t(e !anc(ester case s(ould t(us %e reiterated@ )(e Court cannot close t(is case 'it(out +aAing t(e o%servation t(at it fro'ns at t(e *ractice of counsel '(o filed t(e original co+*laint in t(is case of o+itting an3 s*ecification of t(e a+ount of da+ages in t(e *ra3er alt(oug( t(e a+ount of over P:? +illion is alleged in t(e %od3 of t(e co+*laint. )(is is clearl3 intended for no ot(er *ur*ose t(an to evade t(e *a3+ent of t(e correct filing fees if not to +islead t(e docAet clerA in t(e assess+ent of t(e filing fee. . . . )(e res*ondent Court itself& confronted %3 t(e sa+e issue& %ut *er(a*s una'are of its earlier Resolution& ruled t(at P8P and PPI are lia%le for t(e filing fees on t(e clai+ for da+ages. res*ondent Court a**lied t(e rule laid do'n in Sun 4nsurance 0ffice and 5ilipinas Shell Petroleum Corp. '(ic( 'ere& %3 t(en& alread3 overturned %3 2anchester. #ven granting for t(e saAe of argu+ent t(at Sun 4nsurance and Pilipinas Shell +a3 a**l3 in t(is case& t(e Court categoricall3 stated@

Prof. Victoria A.

35

4t is not simpl! the filing of the complaint or appropriate initiator! pleading# ut the pa!ment of the prescri ed doc'et fee# that vests a trial court $ith jurisdiction over the su ject.matter or nature of the action. 6here the filling of the initiator! pleading is not accompanied ! pa!ment of the doc'et fee# the court ma! allo$ the pa!ment of the fee $ithin a reasona le time ut in no case e!ond the applica le prescriptive or reglementar! period. )(e *rescri*tive *eriod t(erein +entioned refers to t(e *eriod 'it(in '(ic( a s*ecific action +ust %e filed. It +eans t(at in ever3 case& t(e docAet fee +ust %e *aid %efore t(e la*se of t(e *rescri*tive *eriod. )(ere can %e no 1uestion t(at in t(e instant case& P8PDs clai+s for da+ages arise out of an in4ur3 to its rig(ts. Pursuant to Article 1149 of t(e Civil Code& t(e action t(erefor +ust %e initiated 'it(in 4 3ears fro+ t(e ti+e t(e cause of action accrued. Since t(e da+ages arose out of t(e alleged un'arranted& ill +otivated& illegal& unnecessar3 and un4ustified conservators(i*& t(e cause of action& if an3& first accrued in 1/?4 and continued until 1/?:& '(en t(e original co+*laint 'as filed. )(ere is no s(o'ing t(at P8P *aid t(e correct filing fee for t(e clai+ 'it(in t(e *rescri%ed *eriod. ;ence& not(ing can save t(e case fro+ %eing dis+issed. DISPOSITION PR#!IS#S CO<SID#R#D& t(e *etitions are =RA<)#D. )(e decision and resolution of t(e CA are R#V#RS#D and S#) ASID#. Res*ondent .udge is ordered to dis+iss Civil Case. All *roceedings undertaAen and all orders issued %3 res*ondent .udge are (ere%3 S#) ASID# for %eing null and void.

ASCUE ' CA @ANTONIOA /R N!. ;:11B P%)i**%= M%( ;, 3>>3

NATURE Petition for revie' on certiorari FACTS Private res*ondents Ra+on Antonio& Salvador Salenga and Ili*ia -ernandeB 5lessees6 filed a co+*laint 'it( t(e !etro)C alleging t(at *etitioner Ascue 5lessor6 refused to collect t(eir rentals. ;ence& t(e3 soug(t consignation of t(e *a3+ents 'it( t(e !etro)C.

Civil Procedure Digest

Ascue filed a +otion to dis+iss co+*laint on t(e ground t(at it is t(e R)C not !)C '(ic( (as 4urisdiction over consignation cases& t(e su%4ect +atter of litigation %eing inca*a%le of *ecuniar3 esti+ation. )(e !etro)C denied Ascue2s +otion to dis+iss and (eld t(at t(e inferior court (ad 4urisdiction since t(e consigned a+ount 'as P5&925 5'ell %elo' 20T6. Ascue later a**ealed to t(e R)C %ut t(e sa+e dis+issed t(e a**eal for %eing *re+ature. Ascue %roug(t t(e case to t(e SC on direct a**eal %ut t(e case 'as referred %acA to t(e CA. )(e CA t(en dis+issed t(e *etition and ruled t(at t(e 4urisdiction of a court in consignation cases de*ends on t(e a+ount consigned& consignation %eing +erel3 a for+ of *a3+ent and t(e o**osite of a de+and %3 a creditor for *a3+ent. ISSUE >O< t(e CA erred in (olding t(at consignation cases fall 'it(in t(e 4urisdiction of t(e !etro)C and t(at t(e a+ount consigned deter+ines said 4urisdiction HELD <o. Ratio In valid consignation cases& '(ere t(e t(ing soug(t to %e de*osited is a su+ of +one3& t(e a+ount of de%t due is deter+ina%le& (ence& t(e su%4ect +atter is ca*a%le of *ecuniar3 esti+ation. )(is a+ount soug(t to %e consigned t(en deter+ines t(e 4urisdiction of t(e court. Reasoning *etitioner is of t(e %elief t(at it is t(e R)C& not t(e !)C& '(ic( (as 4urisdiction over t(e case& inas+uc( as t(e su%4ect +atter of litigation 5t(e a+ount to %e consigned6 is inca*a%le of *ecuniar3 esti+ation. )(is is 'rong. Consignation is t(e act of de*ositing t(e t(ing due 'it( t(e court or 4udicial aut(orities '(enever t(e creditor cannot acce*t or refuses to acce*t *a3+ent and it generall3 re1uires a *rior tender of *a3+ent. )'o of t(e re1uisites of it valid consignation are 516 t(at t(ere is a de%t due. and 526 t(e a+ount is *laced it t(e dis*osal of t(e court. )(us& '(ere no de%t is due and o'ing& consignation is not *ro*er. In a valid consignation '(ere t(e t(ing soug(t to %e de*osited is a su+ of +one3& t(e a+ount of t(e de%t due is deter+ina%le. Clearl3& t(e su%4ect +atter 5i.e.& t(e a+ount due6 in consignation cases is ca*a%le of *ecuniar3 esti+ation. )(is a+ount soug(t to %e consigned deter+ines t(e 4urisdiction of t(e court. In t(e case at %ar. t(e a+ount consigned %eing P5&925.00& t(e res*ondent +etro*olitan trial court

A2010 Avena
correctl3 assu+ed 4urisdiction over t(e sa+e in accordance 'it( Section 00516 of 8P 8lg. 12/. Disposition Petition D#<I#D. CA decision A--IR!#D.

Prof. Victoria A.

32

NE/RE ' CABAHU/ SHIPPIN/ 35 SCRA 544 DIZON= Ap"i* 9>, 3>55
NATURE A**eal FACTS On August 14& 1/91& <egre 5a**ellant6 filed (is co+*laint against Ca%a(ug S(i**ing N Co 5a**ellee6& a co++on carrier engaged in t(e %usiness of trans*orting *ersons and goods for a *rice 'it(in P(ili**ine 'aters& to recover t(e su+ of P0&::4./0& re*resenting t(e value of a cargo of dried fis( %elonging to (i+ '(ic( 'as loaded on t(e latterDs vessel& and '(ic( 'as totall3 destro3ed on %oard t(ereof& %efore it could %e trans*orted to its *lace of destination& due to t(e gross negligence of t(e officers and +e+%ers of t(e cre' of said vessel As Ca%a(ug2s ans'er ad+itted lia%ilit3 for t(e loss of said cargo& %ut onl3 u* to t(e a+ount of P0&:00&:?& a**ellant +oved for a 4udg+ent on t(e *leadings. In re*l3ing t(ereto& (o'ever& a**ellee +oved to dis+iss t(e case on t(e ground t(at t(e a+ount of t(e clai+ did not fall 'it(in t(e 4urisdiction of t(e court. Resolving t(is +otion& t(e court dis+issed t(e co+*laint for lacA of 4urisdiction& 'it(out *re4udice to t(e rig(t of a**ellant to file t(e sa+e 'it( t(e corres*onding +unici*al court. A**ellant +aintains in t(is a**eal t(at (is action is one in ad+iralt3 and +ariti+e 4urisdiction& '(ic(& *ursuant to t(e *rovisions of Section 44 of t(e .udiciar3 Act& as a+ended& falls 'it(in t(e e7clusive original 4urisdiction of t(e courts of first instance& irres*ective of t(e a+ount or t(e value of t(e goods involved. ISSUE0S >O< t(e case falls 'it(in t(e 4urisdiction of C-I 5R)C6 HELD

YES Ratio. It (as %een (eld t(at& to give ad+iralt3 4urisdiction over a contract& t(e sa+e +ust relate to t(e trade and %usiness of t(e sea Ad+iralt3 4urisdiction& it (as also %een (eld& e7tends to all +ariti+e torts. Reasoning. )(e action 'as %ased u*on an oral contract for t(e trans*ortation of goods %3 'ater. !oreover& t(e allegations of t(e co+*laint clearl3 s(o'@ first& t(at t(e contract entered into %et'een t(e *arties (ad alread3 %een *artiall3 *erfor+ed 'it( t(e loading of t(e goods su%4ect +atter t(ereof on %oard a**elleeDs vessel and t(e acce*tance t(ereof %3 said a**ellee& and second& t(at t(e +ariti+e contract %inding t(e *arties 'as %reac(ed %3 t(e carrier %ecause t(roug( (is fault and t(at of (is agents and re*resentatives t(e cargo %eca+e a total loss. Disposition Reversed.

BAITO V SARMIENTO 3B> P-i*. 3:; PADILLA= APR 94, 3>5B

NATURE A**eal fro+ C-I Sa+ar FACTS "ucina 8aito filed action for su**ort against (er (us%and Anatalio Sar+iento. C-I Sa+ar dis+issed (er co+*laint on t(e ground t(at it (as no 4urisdiction& t(e a+ount de+anded as su**ort %eing onl3 P:20 ISSUE >O< t(e C-I (as 4urisdiction over an action for su**ort if t(e a+ount clai+ed or de+anded as su**ort is onl3 P:20& or not +ore t(an P2&000 5no' P5&0006 HELD Ratio. An action for su**ort does not onl3 involve t(e deter+ination of t(e a+ount to %e given as su**ort& %ut also t(e relation of t(e *arties& t(e rig(t to su**ort created %3 t(e relation& t(e needs of t(e clai+ant& t(e financial resources of t(e *erson fro+ '(o+ su**ort is soug(t& all of '(ic( are not ca*a%le of *ecuniar3 esti+ation. Reasoning. An action for su**ort falls 'it(in t(e original 4urisdiction of Courts of -irst Instance under

Civil Procedure Digest

section 445a6 of Re*u%lic Act <o. 2/9& as a+ended %3 Re*u%lic Act <o. 2910. Disposition )(e order a**ealed fro+ is set aside and t(e case is re+anded

A2010 Avena
!etro*olitan )rial Court. )(e co+*laint 'as deno+inated as an action for da+ages 'it( in4unction %ut 'as su%se1uentl3 dis+issed for lacA of 4urisdiction. Octo%er 20& 1/?: M Anot(er co+*laint 'as instituted in t(e !)C '(ic( (ad t(e sa+e allegations. Reginaldo alleges t(at (e (as a clear and un+istaAa%le rig(t to t(e use of said roo+& entitling (i+ to t(e 'rit of *reli+inar3 +andator3 in4unction to co++and *etitioner to *rovide (i+ t(e a**ro*riate Ae3 to t(e locA of t(e +ain %uilding$ and to *a3 da+ages in t(e a+ount of P1&250.00& P5&000.00 attorne3Ds fees and costs of t(e suit. <ove+%er 2& 1/?: A te+*orar3 restraining order 'as issued %3 res*ondent 4udge *ending trial on t(e +erits& co++anding "T)& Inc. to deliver t(e a**ro*riate Ae3s to Reginaldo and to allo' (i+ to enter t(e *re+ises and Roo+ 001 of t(e %uilding. <ove+%er 0& 1/?: M "T)& Inc. instituted t(e instant *etition. )(e #7ecutive .udge issued a te+*orar3 restraining order& en4oining t(e enforce+ent of t(e te+*orar3 restraining order earlier issued %3 res*ondent 4udge and fro+ furt(er taAing cogniBance of said civil case. Wi - "e+%") ! -e i##,e !& p!##e##i!n? -orce 'as used %3 "T)& Inc. in de*riving Reginaldo of *(3sical *ossession of t(e roo+ '(en t(e +ain door2s locA 'as c(anged 'it(out t(e Ano'ledge and consent of Reginaldo. )(e issue involved is +ere *(3sical *ossession 5*ossession de facto6 and not 4uridical *ossession 5*ossession de 4ure6 nor o'ners(i*. )(e *ur*ose of forci%le entr3 is t(at regardless of t(e actual condition of t(e title to *ro*ert3& t(e *art3 in *eacea%le and 1uiet *ossession s(all not %e turned out %3 strong (and& violence or terror. Considering t(at res*ondent 4udge found t(e a**lica%ilit3 of t(e Rule in Su++ar3 Procedure& t(e +otion to dis+iss 'as correctl3 denied& a +otion to dis+iss %eing one of t(e *ro(i%ited *leadings and +otions under Section 15 of t(e 1/?0 Rules on Su++ar3 Procedure. Wi - "e+%") ! -e i##,e !& .,"i#)ic i!n? "T)& Inc. argued t(at '(en t(e a+ount of da+ages clai+ed is not s*ecificall3 alleged in t(e co+*laint& 4urisdiction over t(e case 'ould fall under t(e R)C as t(e failure to so allege 'ould c(aracteriBe t(e su%4ect +atter as one '(ic( is inca*a%le of *ecuniar3 esti+ation. In Singson vs. Aragon& t(e SC (eld t(at e7e+*lar3 da+ages +ust %e s*ecified and if not& t(e +unici*al trial court could still grant it& if toget(er 'it( t(e

Prof. Victoria A.

3;

ot(er +one3 clai+s& t(e a+ount of t(e total clai+ does not e7ceed P10&000.00 5no' P20&0006. ISSUE >O< t(e action for s*ecific *erfor+ance in t(is case falls under t(e 4urisdiction of t(e R)C HELD <O Ratio In 7ichanco vs. -aurilla# it 'as (eld t(at '(at confers 4urisdiction on t(e inferior court in forci%le entr3 and illegal detainer cases is not t(e a+ount of un*aid rentals or da+ages involved& %ut rat(er t(e nature of t(e action %ecause t(e rents or da+ages are onl3 incidental to t(e +ain action. Reasoning )(e suit is one for forci%le entr3 and detainer under Rule :0 of t(e Rules of Court. It 'as t(roug( stealt( t(at "T)& Inc. *revented Reginaldo fro+ using t(e roo+. An3 *erson de*rived of *ossession of an3 land or %uilding or *art t(ereof& +a3 file an action for forci%le entr3 and detainer in t(e *ro*er inferior court against t(e *erson unla'full3 de*riving or 'it((olding *ossession fro+ (i+. )(is relief is availa%le to a landlord& vendor and vendee and also to a tenant or lessee or an3 ot(er *erson against '(o+ t(e *ossession of an3 land or %uilding& or a *art of it& is unla'full3 'it((eld& or is ot(er'ise unla'full3 de*rived *ossession 'it(in 1 3ear after suc( unla'ful de*rivation or 'it((olding *ossession. Disposition Petition is denied. <o costs.

D. METROPOLITAN, MUNICIPAL, MUNICIPAL CIRCUIT TRIAL COURTS ECc*,#i'e !"i+in%* .,"i#)ic i!n in ci'i* %n) e# % e #e *eDen p"!cee)in+#0!'e" p"!'i#i!n%* "eDe)ie# ECc*,#i'e !"i+in%* .,"i#)ic i!n in &!"ci7*e en "( %n) ,n*%K&,* )e %ine" c%#e# LIM V CA @PIZARROA BB SCRA BB /ANCAYCO= M%"c- 3;, 3>>3
NATURE Petition to revie' t(e decision and resolution of t(e Court of A**eals FACTS "i+ Tie( )ong& Inc. o'ns a %uilding in !anila. One of t(e roo+s in t(e %uilding 5Roo+ 0016 is occu*ied %3 Reginaldo "i+& an !)C 4udge. )(e original occu*ant of Roo+ 100 'as "i+ #ng Piao& t(e fat(er of Reginaldo. >(en "i+ #ng Piao died& t(e occu*anc3 'as continued %3 Reginaldo. #ventuall3& Reginaldo 'as a%le to ac1uire a (ouse and lot in HueBon Cit3 %ut (e still used t(e roo+ '(ere (e Ae*t (is %ooAs& docu+ents& a**liances and ot(er i+*ortant %elongings. Se*te+%er 1/?: M "T)& Inc. c(anged t(e locA of t(e +ain door of t(e %uilding '(ic( 'as co++onl3 used %3 all t(e occu*ants of t(e %uilding. Se*te+%er 00& 1/?: M Reginaldo 'as una%le to enter t(e %uilding %ecause (e did not (ave a Ae3 to t(e ne' locA. ;e 'as una%le to get (is la' %ooAs for a case (e 'as 'orAing on so (e (ad to *urc(ase ne' ones '(ic( cost (i+ P1&205.00. Octo%er 1& 1/?: ;e re1uested for a ne' Ae3 fro+ t(e OIC of t(e %uiding %ut (is re1uest 'as not co+*lied 'it(. Octo%er 2& 1/?: M Reginaldo instituted a civil case against Rafael "i+ and "i+ Tie( )ong& Inc. %efore t(e

ECc*,#i'e !"i+in%* .,"i#)ic i!n in ci'i* %c i!n# in'!*'in+ i *e ! !" p!##e##i!n !& "e%* p"!pe" ( RUSSELL V VESTIL 004 SCRA :0? TAPI<A<$ !arc( 1:& 1///
NATURE Petition for Certiorari FACTS Petitioners filed a co+*laint against res*ondents& deno+inated ,D#C"ARA)IO< O- <I""I)C A<D PAR)I)IO<&, 'it( t(e R)C of !andaue Cit3

Civil Procedure Digest

)(e co+*laint alleged t(at *etitioners are co o'ners of t(at *arcel of land in "iloan& Ce%u. )(e land 'as *reviousl3 o'ned %3 t(e s*ouses Casi+ero )aut(o and Cesaria )aut(o. I*on t(e deat( of said s*ouses& t(e *ro*ert3 'as in(erited %3 t(eir legal (eirs& (erein *etitioners and *rivate res*ondents. Since t(en& t(e lot (ad re+ained undivided until *etitioners discovered a *u%lic docu+ent deno+inated ,D#C"ARA)IO< O;#IRS A<D D##D O- CO<-IR!A)IO< O- A PR#VIOIS ORA" A=R##!#<) O- PAR)I)IO<, 83 virtue of t(is deed& res*ondents divided t(e *ro*ert3 a+ong t(e+selves to t(e e7clusion of *etitioners. )(e co+*laint *ra3ed t(at t(e docu+ent %e declared null and void and an order %e issued to *artition t(e land a+ong all t(e (eirs. Res*ondents filed a !otion to Dis+iss t(e co+*laint on t(e ground of lacA of 4urisdiction over t(e nature of t(e case as t(e action is one for re *artition and since t(e assessed value of t(e *ro*ert3 as stated in t(e co+*laint is P5&000.00& t(en& t(e case falls 'it(in t(e 4urisdiction of t(e !C)C of "iloan& Co+*ostela& Ce%u Petitioners filed an O**osition to t(e !otion to Dis+iss sa3ing t(at t(e co+*laint is for t(e annul+ent of a docu+ent deno+inated as ,D#C"ARA)IO< O;#IRS A<D D##D OCO<-IR!A)IO< O- PR#VIOIS ORA" PAR)I)IO<&, '(ic( is clearl3 one inca*a%le of *ecuniar3 esti+ation& t(us& cogniBa%le %3 t(e R)C )(e res*ondent 4udge issued an Order granting t(e !otion to Dis+iss. A !otion for Reconsideration of said order 'as filed %3 *etitioners Res*ondents did not o**ose t(e +otion for reconsideration. Res*ondent 4udge issued anot(er Order den3ing t(e +otion for reconsideration. ;ence& t(is *etition ISSUE >O< t(e R)C (as 4urisdiction to entertain t(e civil case. HELD C#S. Ratio Singsong vs. 4sa ela Sa$mill@ In deter+ining '(et(er an action is one t(e su%4ect +atter of '(ic( is not ca*a%le of *ecuniar3 esti+ation t(is Court (as ado*ted t(e criterion of first ascertaining t(e nature of t(e *rinci*al action or re+ed3 soug(t. If it is

A2010 Avena
*ri+aril3 for t(e recover3 of a su+ of +one3& t(e clai+ is considered ca*a%le of *ecuniar3 esti+ation& and '(et(er 4urisdiction is in t(e +unici*al courts or in t(e courts of first instance 'ould de*end on t(e a+ount of t(e clai+. ;o'ever& '(ere t(e %asic issue is so+et(ing ot(er t(an t(e rig(t to recover a su+ of +one3& '(ere t(e +one3 clai+ is *urel3 incidental to& or a conse1uence of& t(e *rinci*al relief soug(t& t(is Court (as considered suc( actions as cases '(ere t(e su%4ect of t(e litigation +a3 not %e esti+ated in ter+s of +one3& and are cogniBa%le e7clusivel3 %3 courts of first instance #7a+*les of actions inca*a%le of *ecuniar3 esti+ation are t(ose for s*ecific *erfor+ance& su**ort& or foreclosure of +ortgage or annul+ent of 4udg+ent$ also actions 1uestioning t(e validit3 of a +ortgage& annulling a deed of sale or conve3ance and to recover t(e *rice *aid and for rescission& '(ic( is a counter*art of s*ecific *erfor+ance. >(ile actions under Sec. 00506 of 8.P. 12/ are also inca*a%le of *ecuniar3 esti+ation& t(e la' s*ecificall3 +andates t(at t(e3 are cogniBa%le %3 t(e !)C& !#)C& or !C)C '(ere t(e assessed value of t(e real *ro*ert3 involved does e7ceed P20&000.00 in !etro !anila& or P50&000.00& if located else'(ere. If t(e value e7ceeds P20&000.00 or P50&000.00 as t(e case +a3 %e& it is t(e Regional )rial Courts '(ic( (ave 4urisdiction under Sec. 1/526. Reasoning )(e su%4ect +atter of t(e co+*laint in t(is case is annul+ent of a docu+ent deno+inated as ,D#C"ARA)IO< O- ;#IRS A<D D##D OCO<-IR!A)IO< O- PR#VIOIS ORA" PAR)I)IO<., )(e +ain *ur*ose of *etitioners in filing t(e co+*laint is to declare null and void t(e docu+ent in '(ic( *rivate res*ondents declared t(e+selves as t(e onl3 (eirs of t(e late s*ouses Casi+ero )aut(o and Cesaria )aut(o and divided (is *ro*ert3 a+ong t(e+selves to t(e e7clusion of *etitioners '(o also clai+ to %e legal (eirs and entitled to t(e *ro*ert3. >(ile t(e co+*laint also *ra3s for t(e *artition of t(e *ro*ert3& t(is is 4ust incidental to t(e +ain action& '(ic( is t(e declaration of nullit3 of t(e docu+ent a%ove descri%ed. It is a7io+atic t(at 4urisdiction over t(e su%4ect +atter of a case is conferred %3 la' and is deter+ined %3 t(e allegations in t(e co+*laint and t(e c(aracter of t(e relief soug(t& irres*ective of '(et(er t(e *laintiff is entitled to all or so+e of t(e clai+s asserted t(erein. Di#p!#i i!n )(e *etition 'as =RA<)#D.

Prof. Victoria A.

3>

MANUFACTURERJS DISTRIBUTORS, INC., V YU SIU LION/ 33 SCRA 5;B REYES, JBL= Ap"i* 9> 3>55
NATURE A**eal on *oints of la' fro+ an order of t(e C-I !anila sustaining and affir+ing an order of t(e !)C !anila dis+issing t(e original co+*laint for 'ant of 4urisdiction. FACTS !anufacturerDs Distri%utors& Inc. (ad filed action in !)C !anila& 8ranc( III& seeAing to co+*el Cu Siu "iong to acce*t deliver3 of :4&500 *ieces of *lastifil+ %ags& %alance of 100&000 *ieces ordered %3 said Cu Sio "iong and su**lied %3 t(e !anufacturer2s Distri%utors$ to *a3 P0&0:9.00& t(e value of t(e 100&000 *ieces of *lastifil+ %ags ordered %3 (i+& *lus 12J interest *er annu+ t(ereon until full3 *aid$ and to *a3 t(e a+ount of P?44.00& for and as sti*ulated attorne3Ds fees. !anuufacturer2s Distri%utors also *ra3ed for suc( ot(er reliefs as +a3 %e dee+ed 4ust and e1uita%le in t(e *re+ises. Cu Sio "iong filed !)D on t(e ground t(at& t(e su%4ect of t(e litigation %eing s*ecific *erfor+ance& t(e sa+e la3 'it(in t(e e7clusive 4urisdiction of t(e C-I. !)C u*(eld Cu Sio "iong and dis+issed t(e co+*laint. C-I affir+ed t(e order of dis+issal 'it( costs& sa3ing@ F!anufacturer2s Distri%utorsDs action %efore t(e !)C 'as one for s*ecific *erfor+anceX >(et(er refusal to acce*t deliver3 of said *lastifil+s 'as 4ustified or not is not ca*a%le of *ecuniar3 esti+ation and 'as& t(erefore& not cogniBa%le %3 t(e !unici*al Court., .anufacturer/s Distri&utors contend t(at t(e su%4ect of t(e litigation 'ere t(e 100&000 *lastifil+ %ags& contracted for %3 Cu Sio "iong at a total *rice of P0&0:9.00& and& t(erefore& it 'as susce*ti%le of *ecuniar3 esti+ation. ISSUE >O< t(e issue is inca*a%le of *ecuniar3 esti+ation& and is t(erefore not 'it(in t(e 4urisdiction of !)C HELD C#S.

E. SPECIAL RULES

Civil Procedure Digest

)(ere is no controvers3& as to t(e contractual *rice for t(e *lastifil+ %ags$ t(e dis*ute is '(et(er or not Cu Sio "iong 'as 4ustified in its refusal to acce*t t(e deliver3 of t(e %ags. )(is +atter *lainl3 is not ca*a%le of *ecuniar3 esti+ation& and& t(erefore& is not 'it(in t(e 4urisdiction of t(e !)C. S*eaAing of t(e original 4urisdiction of t(e .ustice of t(e Peace and !unici*al Courts& t(e .udiciar3 Act& as a+ended& in its sec??& after conferring original 4urisdiction in .ustice of t(e Peace and !unici*al Courts over cases '(ere t(e value of t(e su%4ect +atter or a+ount of t(e de+and does not e7ceed P5&000.00& *rovides nevert(eless in its *ar2 t(at ,)(e 4urisdiction of a 4ustice of t(e *eace and 4udge of a +unici*al court s(all not e7tend to civil actions in '(ic( t(e su%4ect of litigation is not ca*a%le of *ecuniar3 esti+ation& e7ce*t in forci%le entr3 and detainer cases$ nor to t(ose '(ic( involve t(e legalit3 of an3 ta7& i+*ost or assess+ent$ nor to actions involving ad+iralt3 or +ariti+e 4urisdiction$ nor to +atters of *ro%ate& t(e a**oint+ents of trustees or receiver$ nor to actions for annul+ent of +arriages$ . . ., .urisdiction over t(e classes of cases t(us e7cluded is conferred on t(e C-I 5.udiciar3 Act& sec446. )(at !anufacturer2s Distri%utorsDs co+*laint also soug(t t(e *a3+ent %3 Cu Sio "iong of P0&0:9.00 *lus interest and attorne3Ds fees& does not give a *ecuniar3 esti+ation to t(e litigation& for t(e *a3+ent of suc( a+ounts can onl3 %e ordered as a conse1uence of t(e s*ecific *erfor+ance *ri+aril3 soug(t. In ot(er 'ords& suc( *a3+ent 'ould %e %ut an incident or conse1uence of Cu Sio "iongDs lia%ilit3 for s*ecific *erfor+ance. If no suc( lia%ilit3 is 4udiciall3 declared& t(e *a3+ent cannot %e a'arded. ;ence& t(e a+ounts soug(t do not re*resent t(e value of t(e su%4ect of litigation. Su%4ect +atter over '(ic( 4urisdiction cannot %e conferred %3 consent& (as reference& not to t(e res or *ro*ert3 involved in t(e litigation nor to a *articular case& %ut to t(e class of cases& t(e *ur*orted su%4ect of litigation& t(e nature of t(e action and of t(e relief soug(t. +he 82unicipal +rial9 Court has no jurisdiction of a suit for specific performance of a contract# although the damages alleged for its reach# if permitted# are $ithin the amount of $hich that court has jurisdiction. CruB vs. )an 5?: P(il. 92:6 is ina**lica%le. In said case& t(e *laintiff (ad +ade an alternative *ra3er@ s*ecific *erfor+ance or *a3+ent of t(e su+ of P944.01. )(e alternative *ra3er +eant t(at t(e

A2010 Avena
*a3+ent of t(e latter su+ 'as a *ecuniar3 esti+ation of t(e s*ecific *erfor+ance soug(t& since it 'ould e1uall3 satisf3 t(e clai+s of t(e *laintiffs. In t(e *resent case& t(e *a3+ent in +one3 is not an alternative e1uivalent& %ut a conse1uence or result of t(e s*ecific *erfor+ance& and (ence can not constitute a *ecuniar3 esti+ation t(ereof. Disposition C-I order affir+ed.

Prof. Victoria A.

9B

CRUZ V TAN ?: SCRA 92: .I=O$ <ove+%er 2:& 1/50

NATURE Original action in t(e Su*re+e Court. Certiorari and *ro(i%ition 'it( in4unction. FACTS August 0& 1/4/@ res*ondent )elesfora Ca+%ao filed a co+*laint against t(e *etitioner !anuel CruB& *ra3ing t(at t(e latter %e ordered to finis( t(e construction of a (ouse +entioned in t(e co+*laint& or to *a3 (er t(e su+ of P944.01. >it(in ten da3s fro+ t(e recei*t of t(e su++ons& t(e *etitioner filed a +otion for a %ill of *articulars& '(ic( 'as denied %3 t(e court. Se*te+%er 1/& 1/4/@ *etitioner filed a +otion to dis+iss t(e case on t(e ground t(at t(e C-I (as no 4urisdiction over t(e su%4ect +atter of t(e suitGt(e de+and contained in t(e *ra3er is onl3 for P944.01& '(ic( falls under t(e .ustice of t(e Peace or t(e .udge of t(e !unici*al Court. )(e +otion to dis+iss 'as denied %3 t(e court& and trial for t(e +erits 'as also set. Order setting t(e case for trial on Octo%er 10& 1/4/ 'as received %3 *etitioner2s counsel on Octo%er 12 5t'o da3s after6. Since t(e *arties did not a**ear at t(e trial& t(e court dis+issed t(e case for lacA of interest of t(e *arties on Octo%er 10& 1/4/. Octo%er 12& 1/4/@ res*ondent Ca+%ao filed a +otion *ra3ing t(at t(e trial of t(e case %e set for <ove+%er 14& 1/4/. )(e +otion 'as (eard on Octo%er 15& 1/4/& %ut as t(e *etitioner2s counsel received notice of t(e said +otion on Oct. 15& (e could not a**ear in t(e said (earing. ISSUE 1. >O< C-I (as 4urisdiction over t(e case. HELD <O

Ratio )(e 4urisdiction of t(e res*ective courts is deter+ined %3 t(e value of t(e de+and and not t(e value of t(e transaction out of '(ic( t(e de+and arose. Reasoning )(e case co+es 'it(in t(e e7clusive original 4urisdiction of t(e +unici*al court or 4ustice of t(e *eace court. J,)ici%"( Ac !& 3>:; S#C. 44. 0riginal jurisdiction.C-I s(all (ave original 4urisdiction@ 5c6 In all cases in '(ic( t(e de+and& e7clusive of interest& or t(e value of t(e *ro*ert3 in controvers3& a+ounts to +ore t(an t'o t(ousand *esos. S#C. ?9. *urisdiction of justices of the peace and judges of municipal courts of chartered cities. 5%6 Original 4urisdiction in civil actions arising in t(eir res*ective +unici*alities& and not e7clusivel3 cogniBa%le %3 t(e C-I. S#C. ??. 0riginal *urisdiction in civil cases. :%% e7clusive original 4urisdiction '(ere t(e value of t(e su%4ect +atter or a+ount of t(e de+and does not e7ceed t'o t(ousand *esos& e7clusive of interest and costs. )(e alternative *ra3er for s*ecific *erfor+ance is also of t(e sa+e value& for t(e alternative *ra3ers 'ould not (ave %een +ade in t(e co+*laint if one 'as +ore valua%le t(an t(e ot(er$ t(e s*ecific *erfor+ance alternativel3 *ra3ed for is ca*a%le of *ecuniar3 esti+ation at P944.01. DISPOSITION .udge of C-I is declared 'it(out 4urisdiction to tr3 t(e case& and is ordered to sto* furt(er *roceedings %3 dis+issing t(e case.

LAPITAN V SCANDIA 9: SCRA :22 REYES, J.B.L., J,*( 13, 3>5;

FACTS Andres "a*itan (as a**ealed directl3 to t(is Court against an order of t(e C-I of Ce%u& dis+issing& for lacA of 4urisdiction& (is co+*laint for rescission and da+ages against a**ellees Scandia& Inc.& of !anila and =eneral #ngineering Co. of Ce%u. Plaintiff avers t(at on A*ril 1:& 1/90 (e *urc(ased fro+ Scandia& Inc.& one A8C Diesel #ngine$ t(at (e %oug(t t(e engine for running a rice and corn +ill$ t(at defendants (ad 'arranted and assured (i+ t(at all

Civil Procedure Digest

s*are *arts for said engine are Ae*t in stocA in t(eir stores& ena%ling (i+ to avoid loss due to long *eriods of 'aiting& and t(at defendants 'ould re*lace an3 *art of t(e engine t(at +ig(t %reaA 'it(in 12 +ont(s after deliver3. )(e ca+ rocAer ar+ of t(e engine %roAe due to fault3 +aterial and 'orA+ans(i* and it sto**ed functioning$ t(e sellers 'ere una%le to send a re*lace+ent until August 2/& 1/90$ %arel3 si7 da3s after re*lace+ent t(e ne' *art %roAe again due to fault3 casting and *oor +aterial& so "a*itan notified t(e sellers and de+anded rescission of t(e contract of sale$ (e soug(t return of t(e *rice and da+ages %ut defendants did not *a3. Scandia& Inc.& +oved to dis+iss t(e co+*laint on t(e ground t(at t(e total a+ount clai+ed 'as onl3 P?&:05.00& and 'as 'it(in t(e e7clusive 4urisdiction of t(e +unici*al court& under RA 0?2?& a+ending t(e .udiciar3 Act %3 increasing t(e 4urisdiction of +unici*al courts to civil cases involving P10&000.00 or less. )(e C-I dis+issed t(e action for lacA of 4urisdiction. "a*itan a**ealed directl3 to t(is Court& arguing 516 t(at rescission 'as inca*a%le of *ecuniar3 esti+ation& and 526 t(at as (e clai+ed +oral and e7e+*lar3 da+ages& %esides t(e *rice of P0&:05.00& P4&000.00 actual da+ages& and P1&000.00 attorne3sD fees& t(e value of (is de+and e7ceeded t(e 4urisdiction of t(e +unici*al court. ISSUE >O< C-I (ad 4urisdiction HELD YES. Ratio. In deter+ining '(et(er an action is one t(e su%4ect +atter of '(ic( is not ca*a%le of *ecuniar3 esti+ation& t(is Court (as ado*ted t(e criterion of first ascertaining t(e nature of t(e *rinci*al action or re+ed3 soug(t. If it is *ri+aril3 for t(e recover3 of a su+ of +one3& t(e clai+ is considered ca*a%le of *ecuniar3 esti+ation& and '(et(er 4urisdiction is in t(e +unici*al courts or in t(e C-I 'ould de*end on t(e a+ount of t(e clai+. ;o'ever& '(ere t(e %asic issue is so+et(ing ot(er t(an t(e rig(t to recover a su+ of +one3& or '(ere t(e +one3 clai+ is *urel3 incidental to& or a conse1uence of& t(e *rinci*al relief soug(t& liAe in suits to (ave t(e defendant *erfor+ (is *art of t(e contract and in actions for su**ort& or for annul+ent of a 4udg+ent or to foreclose a +ortgage& t(is Court (as considered suc( actions as cases '(ere t(e su%4ect of t(e litigation +a3 not %e esti+ated in ter+s of +one3& and are cogniBa%le

A2010 Avena
e7clusivel3 %3 t(eC-I. Actions for s*ecific *erfor+ance of contracts (ave %een e7*ressl3 *ronounced to %e e7clusivel3 cogniBa%le %3 t(e C-I. And no cogent reason a**ears '(3 an action for rescission s(ould %e differentl3 treated. >e& t(erefore& rule t(at t(e su%4ect +atter of actions for rescission of contracts are not ca*a%le of *ecuniar3 esti+ation.

Prof. Victoria A.

93

Ratio Alt(oug( t(e *ur*ose of t(e action is to recover an a+ount *lus interest '(ic( co+es 'it(in t(e original 4urisdiction of t(e .ustice of t(e Peace Court& 3et '(en said action involves foreclosure of c(attel +ortgage covering *ro*erties valued at +ore t(an P10&000& t(e action s(ould %e instituted %efore t(e C-I. Reasoning In t(e case at %ar& t(e a+ount soug(t to %e recovered is P1520 *lus interest and costs& and c(attel +ortgage of *ro*erties valued at P15040. It is t(erefore 'it(in t(e 4urisdiction of t(e C-I. Disposition Petition granted

THE /OOD DEVELOPMENT CORPORATION V TUTAAN :0 SCRA 1?/ CO<C#PCIO<$ Se*te+%er 00& 1/:9
NATURE Petition for certiorari FACTS - A co+*laint 'as filed %efore t(e C-I of RiBal against *rivate res*ondents =uiller+o delos Re3es and !arcelina !arcelo for t(e recover3 of t(e su+ of P1520 *lus interest and t(e su+ e1uivalent to 25J of t(e total a+ount due as attorne32s fees& and in default of *a3+ent t(ereof& to order t(e foreclosure of t(e c(attel +ortgage 5'ort( P15&0406 e7ecuted %3 t(e said res*ondents. =regorio #+*erado and "eonarda de la CruB 'ere +ade *art3 defendants since t(e3 'ere co +aAers of t(e *ro+issor3 note. Private res*ondents& in t(eir ans'er clai+s t(at t(e loaned sued u*on is onl3 one of five loans secured %3 t(e+ fro+ t(e *etitioner '(erein t(e3 'ere c(arged usurious interest. )(e3 clai+ t(at t(e %alance due is onl3 P1290. -or failure to *lead& #+*erado 'as declared in default '(ile t(e case against de la CruB 'as dis+issed 'Eo *re4udice. Res*ondents file a +otion to dis+iss for lacA of 4urisdiction since t(e *etitioner onl3 *ra3s for P1520. It t(erefore co+es under t(e 4urisdiction of t(e original 4urisdiction of t(e +unici*al court. Also& since t(e *etitioner *ra3s for foreclosure of c(attel in 8ulacan& it s(ould (ave %een filed t(ere '(ere t(e deed of c(attel +ortgage is located. )(e C-I dis+issed t(e case. !otion for reconsideration 'as liAe'ise denied. ISSUE0S 1. >O< t(e cit3 court (as 4urisdiction HELD 1. C#S.

3>>2 RULES OF CIVIL PROCEDURE SCOPE AND CONSTRUCTION UNIFORM PROCEDURE ACTIONS NATURE Re%*0pe"#!n%*0DiCe) HERNANDEZ V. RURAL BANF OF LUCENA ;3 SCRA 24 AEUINO, 3B J%n. 3>2;
FACTS )(is case is a%out t(e *ro*riet3 of a se*arate action to co+*el a distressed rural %anA& '(ic( is under 4udicial li1uidation& to acce*t a c(ecA in *a3+ent of a +ortgage de%t. S*ouses -rancisco S. ;ernandeB and .osefa I. AtienBa o%tained fro+ t(e Rural 8anA of "ucena& Inc. a loan of P9&000 secured %3 a +ortgage on t(eir t'o lots situated in Cu%ao& HueBon Cit3. )(ree +ont(s after t(at loan 'as o%tained& t(e "ucena %anA %eca+e a distressed %anA. 8efore t(e e7*iration of t(e one 3ear ter+ of t(e loan& or on August 22& 1/91& ;ernandeB 'ent to t(e "ucena %anA and offered to *a3 t(e loan %3 +eans of a c(ecA for P9&000 '(ic( 'as dra'n against t(e %anA %3 a de*ositor& t(e San Pa%lo Colleges& and '(ic( 'as *a3a%le to ;ernandeB. As t(e %anADs e7ecutive vice *resident 'as not availa%le& t(e *a3+ent 'as not consu++ated. At t(e ti+e t(at t(e c(ecA 'as issued& t(e San Pa%lo Colleges (ad a

Civil Procedure Digest

de*osit in t(e "ucena %anA a+ounting to P11&?/0.19. Instead of 'it(dra'ing P9&000 fro+ t(at de*osit& t(e San Pa%lo Colleges c(ose to issue a c(ecA for t(at a+ount to ;ernandeB. ;e sent to t(e %anA %3 registered +ail a *(otostat of t(e c(ecA and a letter in1uiring '(et(er t(e %anA 'ould (onor t(e c(ecA and '(en (e could go *ersonall3 to t(e %anA for t(at *ur*ose. )(at letter 'as received %3 t(e %anA. )(e e7ecutive vice *resident 'rote to ;ernandeB and infor+ed (i+ t(at t(e c(ecA could not %e (onored for t(e ti+e %eing %ecause of adverse events t(at (ad disru*ted t(e %anADs o*erations. >(at t(e vice *resident +eant 'as t(at %3 reason of t(e letter of t(e Central 8anA =overnor dated .une 19& 1/91 t(e o*erations of t(e "ucena %anA 'ere sus*ended. )(e vice *resident e7*lained t(at %ecause t(ere 'as a run on t(e %anA its assets 'ere e7(austed& and so t(e c(ecA sent %3 ;ernandeB& '(ic( c(ecA 'as dra'n against t(e "ucena %anA& could not %e acce*ted. )(e vice *resident said t(at '(en ;ernandeB *resented t(e c(ecA& t(e "ucena %anA 'as no longer in a *osition to (onor 'it(dra'als and t(at (ad ;ernandeB *aid cas(& (is *a3+ent 'ould (ave %een acce*ted. )o (onor t(e c(ecA 'ould (ave %een tanta+ount to allo'ing a de*ositor 5San Pa%lo Colleges6 to +aAe a 'it(dra'al %ut t(e "ucena %anA could not entertain 'it(dra'als 'it(out t(e consent of t(e Central 8anA e7a+iners. Pa3+ent %3 c(ecA 'as a dis%urse+ent. A**arentl3& t(e vice *resident did not taAe t(e trou%le of asAing t(e Central 8anA e7a+iners '(et(er t(e *a3+ent %3 c(ecA +ade %3 ;ernandeB could %e acce*ted. ;ernandeB (i+self '(o s(ould (ave Ano'n t(at t(e %anA 'as a distressed %anA '(ic( (ad sus*ended o*erations and '(ic( 'as under t(e su*ervision of Central 8anA e7a+iners& did not %ot(er to taAe u* (is *ro%le+ 'it( t(e said e7a+iners. ;ernandeB again asAed t(e %anA '(en (e could deliver t(e c(ecA. )(e e7ecutive vice *resident told ;ernandeB t(at t(e %anA could not 3et (onor t(e c(ecA %ecause it (ad not resu+ed its %anAing o*erations$ t(at it 'as a'aiting t(e outco+e of a case filed %3 t(e %anA against t(e Central 8anA$ t(at it +ig(t reo*en in .anuar3& 1/92& and t(at& an3'a3& t(e loan 'ould not %e due until !arc( 21& 1/92. ;ernandeB sent anot(er letter and enclosed t(e original c(ecA 5dul3 endorsed6 'it( (is letter to t(e %anA sent %3 registered +ail and s*ecial deliver3. "etter 'as returned to ;ernandeB %ecause t(e %anADs +anager 'as allegedl3 in !anila. Indeterred&

A2010 Avena
;ernandeB again +ailed t(e c(ecA to t(e %anA 'it( t(e re1uest t(at (is +ortgage %e cancelled. !onetar3 8oard (ad decided to li1uidate t(e "ucena %anA. )o i+*le+ent t(e resolution of t(e !onetar3 8oard for t(e "i1uidation of t(e "ucena %anA& t(e Central 8anA& *ursuant to section 2/ of its c(arter and on t(e assu+*tion t(at t(e "ucena %anA 'as insolvent& filed 'it( t(e Court of -irst Instance of !anila a *etition dated !arc( 2:& 1/92 for assistance and su*ervision in t(e li1uidation of t(e "ucena %anA. Court of -irst Instance of !anila issued an order directing t(e "ucena %anA to turn over its assets to t(e Central 8anADs aut(oriBed re*resentative. A+ong t(e accounts receiva%le of t(e "ucena %anA inventoried %3 t(e Central 8anADs re*resentative 'as t(e account of ;ernandeB. In a letter dated Octo%er 2/& 1/90 ;ernandeB infor+ed t(e Central 8anA t(at (e (ad sent to t(e "ucena %anA on A*ril 25& 1/92 t(e c(ecA for P9&000. ;e again re1uested t(at (is +ortgage %e cancelled. )(e Associate Su*erintendent of 8anAs in (is ans'er returned t(e c(ecA to ;ernandeB and infor+ed (i+ t(at& according to t(e "ucena %anADs e7ecutive vice *resident& t(e c(ecA could not %e a**lied to t(e *a3+ent of ;ernandeBD loan %ecause t(e %anA 'as alread3 closed '(en (e received t(e c(ecA. !oreover& t(e c(ecA 'as dra'n against t(e current de*osits of t(e San Pa%lo Colleges in t(e "ucena %anA '(ic( 'as in t(e *rocess of li1uidation. ;ernandeB 'as advised to settle (is account %3 *a3ing cas( or %3 +eans of a c(ecA dra'n against a %anA ot(er t(an t(e "ucena %anA. Disregarding t(at suggestion& ;ernandeB announced to t(e Associate Su*erintendent of 8anAs in (is letter t(at (e 'as going to de*osit t(e said c(ecA in t(e Court of -irst Instance of "i*a Cit3 on or %efore Dece+%er 29& 1/90. Instead of filing a consignation co+*laint. ;ernandeB enclosed t(e c(ecA 'it( (is letter to t(e clerA of court of t(e Court of -irst Instance at "i*a Cit3. ;ernandeB 'rote a letter dated .anuar3 11& 1/94 infor+ing t(e Associate Su*erintendent of 8anAs of t(e 4udicial de*osit of t(e c(ecA. Co*ies of t(at letter 'ere furnis(ed t(e "ucena %anA and t(e San Pa%lo Colleges. ;ernandeB and (is 'ife filed an action in t(e Court of -irst Instance at "i*a Cit3 to co+*el t(e Rural 8anA of "ucena& Inc.& t(e Central 8anA as li1uidator& and .ose S. !artineB as receiver& to acce*t t(e c(ecA and to e7ecute t(e cancellation of t(e real estate +ortgage. )(e ;ernandeB s*ouses also asAed for

Prof. Victoria A.

99

+oral da+ages in t(e a+ount of P10&000 and attorne3Ds fees of P0&000. Central 8anA filed a +otion to dis+iss. It contended t(at t(ere 'as i+*ro*er venue %ecause& as t(e action allegedl3 involved title to real *ro*ert3& it s(ould (ave %een instituted in HueBon Cit3 '(ere t(e encu+%ered lots are situated. It furt(er contended t(at since t(e "ucena %anA is under li1uidation and is in t(e (ands of a receiver& its *ro*erties and assets are in custodia legis and +a3& t(erefore& %e reac(ed onl3 %3 +otion or *etition in Civil Case <o. 5001/ of t(e Court of -irst Instance of !anila. )(e +otion 'as denied. Counsel for t(e "ucena %anA on .anuar3 00& 1/9: offered to co+*ro+ise t(e case %3 sti*ulating t(at t(e Central 8anA 'ould a**l3 t(e c(ecA in 1uestion to t(e +ortgage de%t of ;ernandeB if t(e %alance of t(e de*osit of t(e San Pa%lo Colleges 'ould %e enoug( to cover t(e a+ount of t(e c(ecA of P9&000 and t(at& %3 virtue of t(at co+*ro+ise& t(e co+*laint and counterclai+ 'ould %e dis+issed.)(at conditional and e1uivocal co+*ro+ise offer fiBBled out %ecause t(e la'3ers of ;ernandeB and t(e Central 8anA did not assent to it. "o'er court ordered t(e "ucena %anA or t(e Central 8anA& as li1uidator& to acce*t and (onor t(e c(ecA& to cancel t(e +ortgage& and to *a3 t(e ;ernandeB s*ouse P25&000 as +oral da+ages 5not P10&000 as *ra3ed for in t(e co+*laint6 *lus P1&000 as attorne3Ds fees. )(e "ucena %anA& t(e Central 8anA and its e+*lo3ee& t(e receiver& a**ealed to t(e SC. ISSUE0S 1. >O< t(e action of t(e ;ernandeB s*ouses to co+*el t(e+ to (onor t(e c(ecA in 1uestion and to cancel t(e +ortgage on t(eir t'o lots is a real action affecting title to real *ro*ert3 '(ic( s(ould (ave %een filed in t(e Court of -irst Instance of RiBal at HueBon Cit3 '(ere t(e +ortgaged lots are situated. 2. >O< "ucena %anA (ad not lost its 4uridical *ersonalit3 after it 'as *laced under li1uidation t(us +aAing it not fall under t(e 4urisdiction of t(e li1uidation court HELD 1. <o it is a *ersonal action. Section 25a6& Rule 4 of t(e Rules of Court *rovides t(at ,actions affecting title to& or for recover3 of *ossession& or for *artition or conde+nation of& or foreclosure of +ortgage on& real *ro*ert3& s(all %e

Civil Procedure Digest

co++enced and tried in t(e *rovince '(ere t(e *ro*ert3 or an3 *art t(ereof lies, <ote t(at t(e rule +entions an action for foreclosure of a real estate +ortgage %ut does not +ention an action for t(e cancellation of a real +ortgage. In t(e instant case& t(e action is *ri+aril3 to co+*el t(e +ortgagee to acce*t *a3+ent of t(e +ortgage de%t and to release t(e +ortgage. T-% %c i!n, K-ic- i# n! eCp"e##*( inc*,)e) in -e en,De"% i!n &!,n) in #ec i!n 9@%A !& R,*e :, )!e# n! in'!*'e -e i *e ! -e D!" +%+e *! #. I i# % pe"#!n%* %c i!n %n) n! % "e%* %c i!n. T-e D!" +%+ee -%# n! &!"ec*!#e) -e D!" +%+e. P*%in i&&#J i *e i# n! in H,e# i!n. T-e( %"e in p!##e##i!n !& -e D!" +%+e) *! #. ;ence& t(e venue of *laintiffsD *ersonal action is t(e *lace '(ere t(e defendant or an3 of t(e defendants resides or +a3 %e found& or '(ere t(e *laintiff or an3 of t(e *laintiffs resides& at t(e election of t(e *laintiff 5Sec. 2V%W& Rule 46. )(e *laintiffs in t(eir %rief confound a real action 'it( an action in re+ and a *ersonal action 'it( an action in *ersona+. )(e3 argue t(at t(eir action is not an action in re+ and& t(erefore& it could %e %roug(t in a *lace ot(er t(an t(e *lace '(ere t(e +ortgaged lots are located. A "e%* %c i!n i# n! -e #%De %# %n %c i!n in "eD %n) % pe"#!n%* %c i!n i# n! -e #%De %# %n %c i!n in pe"#!n%D. In % pe"#!n%* %c i!n, -e p*%in i&& #ee8# -e "ec!'e"( !& pe"#!n%* p"!pe" (, -e en&!"ceDen !& % c!n "%c !" -e "ec!'e"( !& )%D%+e#. In % "e%* %c i!n, -e p*%in i&& #ee8# -e "ec!'e"( !& "e%* p"!pe" (, !", %# in)ic% e) in #ec i!n 9@%A !& R,*e :, % "e%* %c i!n i# %n %c i!n %&&ec in+ i *e ! "e%* p"!pe" ( !" &!" -e "ec!'e"( !& p!##e##i!n, !" &!" p%" i i!n !" c!n)eDn% i!n !&, !" &!"ec*!#,"e !& % D!" +%+e !n, "e%* p"!pe" (. An %c i!n in pe"#!n%D i# %n %c i!n %+%in# % pe"#!n !n -e 7%#i# !& -i# pe"#!n%* *i%7i*i (, K-i*e %n %c i!n in "eD i# %n %c i!n %+%in# -e -in+ i #e*&, in# e%) !& %+%in# -e pe"#!n @3 C. J. S. >:1-:A, Hence, % "e%* %c i!n D%( % -e #%De iDe 7e %n %c i!n, in pe"#!n%D %n) n! nece##%"i*( %n %c i!n in "eD. In -i# c%#e, -e p*%in i&&# %**e+e) in -ei" c!Dp*%in -% -e( Ke"e "e#i)en # !& S%n J,%n, B% %n+%#, K-ic- in -ei" 7"ie& -e( c-%"%c e"i<e %# -ei" *e+%* "e#i)ence %n) K-ic- %ppe%"# ! 7e -ei" )!Dici*e !& !"i+in.

A2010 Avena
On t(e ot(er (and& it is indicated in t(e *ro+issor3 note and +ortgage signed %3 t(e+ and in t(e )orrens title covering t(e +ortgaged lots t(at t(eir residence is at 11 C(icago Street& Cu%ao& HueBon Cit3& '(ic( a**arentl3 is t(e *lace '(ere t(e said lots are located. )(e *laintiffs did not testif3 during t(e trial& So& t(e3 (ave no testi+on3 in t(e records as to t(eir actual residence. We -!*) -% -e "i%* c!," #-!,*) -%'e )i#Di##e) -e %c i!n 7ec%,#e -e 'en,e -e"e!& K%# iDp"!pe"*( *%i) in B% %n+%#. T-e e"D I"e#i)e#I in #ec i!n 9L7M !& R,*e : "e&e"# ! -e p*%ce !& %c ,%* "e#i)ence !" -e p*%ce !& %7!)e %n) n! nece##%"i*( ! -e *e+%* "e#i)ence !" )!Dici*e @D%n+K% T"%n#p!" % i!n C!., Inc. '#. S%"Dien !, L-992>4, J%n,%"( 13, 3>22, 24 SCRA 39:, 39;A. @O& c!,"#e, -e %c ,%* "e#i)ence D%( %*#! in #!De c%#e# 7e -e *e+%* "e#i)ence !" )!Dici*e.A. San .uan& 8atangas +ig(t %e t(e *lace '(ere t(e *laintiffs (ave t(eir do+icile or legal residence %ut t(ere is no 1uestion t(at 11 C(icago Street& Cu%ao& HueBon Cit3 is t(eir *lace of a%ode or t(e *lace '(ere t(e3 actuall3 reside. So& t(e action in t(is case& '(ic( is a *ersonal action to co+*el t(e defendants to (onor t(e c(ecA in 1uestion and to cancel t(e +ortgage& s(ould (ave %een filed in HueBon Cit3 if t(e *laintiffs intended to use t(eir residence as t(e %asis for t(eir c(oice of venue. )(e Central 8anA *oints out t(at t(e rede+*tion action of t(e ;ernandeB s*ouses 'ould ulti+atel3 affect t(e funds and *ro*ert3 of t(e "ucena 8anA. ;ence& t(e li1uidation court is t(e co+*etent tri%unal to *ass u*on t(e issue as to '(et(er t(e ;ernandeB s*ouses could validl3 *a3 t(eir +ortgage de%t %3 +eans of t(e c(ecA of t(e San Pa%lo Colleges. 2. <o. )(e li1uidation court or t(e !anila court (as e7clusive 4urisdiction to entertain t(e clai+ of t(e ;ernandeB s*ouses. At t(e ti+e t(e ;ernandeB s*ouses filed in 1/94 t(eir consignation co+*laint t(e "ucena %anA 'as alread3 under li1uidation. )(e !anila court in its order of !arc( 2?& 1/90 (ad ordered t(e officers of t(e "ucena %anA to turn over to t(e Central 8anA or to t(e receiver& t(e Su*erintendent of 8anAs& all of its assets& *ro*erties and *a*ers. A+ong t(e assets turned over to t(e receiver 'as t(e outstanding or un*aid account of t(e ;ernandeB s*ouses '(ic( a**ears in t(e inventor3 as@ ,0/0. ;ernandeB& -rancisco S.& 11 C(icago St.& Cu%ao& H. C.

Prof. Victoria A.

91

And a+ong t(e *a*ers or o%ligations turned over to t(e receiver 'as "edger <o. 059 evidencing t(e de*osit of t(e San Pa%lo Colleges in t(e "ucena %anA in t(e su+ of P11&?/0.19& against '(ic( t(e c(ecA for P9&000 'as dra'n. It 'as t(at c(ecA '(ic( t(e ;ernandeB s*ouses (ad issued to *a3 t(eir +ortgage de%t to t(e "ucena %anA. Inder section 2/ of t(e Central 8anA Act& Re*u%lic Act <o. 295& '(en t(e !onetar3 8oard& u*on infor+ation su%+itted %3 t(e Su*erintendent of 8anAs& finds a %anA to %e insolvent& it s(all for%id t(e %anA to do %usiness and it s(all taAe care of its assets according to la'. In t(at case& if t(e !onetar3 8oard finds out t(at t(e insolvent %anA cannot resu+e %usiness 'it( safet3 to its creditors& it s(all t(roug( t(e Solicitor =eneral& file a *etition in t(e Court of -irst Instance& *ra3ing for t(e assistance and su*er vision of t(e court in t(e li1uidation of t(e %anADs affairs. )(ereafter& t(e Su*erintendent of 8anAs& u*on order of t(e !onetar3 8oard and under t(e su*ervision of t(e court& s(all convert to +one3 t(e %anADs assets. ,Sa%ido es 1ue uno de los de%eres *ri+ordiales de un de*ositario es (acerse cargo in+ediata+ente de todo el activo 3 *asivo de un %anco, 5"u3 "a+ N Co. vs. !ercantile 8anA of C(ina& :1 P(il. 5:0& 5:96. T-e &%c -% -e in#!*'en 7%n8 i# &!"7i))en ! )! 7,#ine##, -% i # %##e # %"e ,"ne) !'e" ! -e S,pe"in en)en !& B%n8#, %# % "ecei'e", &!" c!n'e"#i!n in ! c%#-, %n) -% i # *iH,i)% i!n i# ,n)e" %8en Ki - .,)ici%* in e"'en i!n De%n# -% , %# &%" %# *%K&,* %n) p"%c ic%7*e, %** c*%iD# %+%in# -e in#!*'en 7%n8 #-!,*) 7e &i*e) in -e *iH,i)% i!n p"!cee)in+. )(e 4udicial li1uidation is intended to *revent +ulti*licit3 of actions against t(e insolvent %anA. )(e la'+aAing %od3 conte+*lated t(at for convenience onl3 one court& if *ossi%le s(ould *ass u*on t(e clai+s against t(e insolvent %anA and t(at t(e li1uidation court s(ould assist t(e Su*erintendent of 8anAs and control (is o*erations. In t(e course of t(e li1uidation& contentious cases +ig(t arise '(erein a full dress (earing 'ould %e re1uired and legal issues 'ould (ave to %e resolved. ;ence& it 'ould %e necessar3 in 4ustice to all concerned t(at a Court of -irst Instance s(ould assist and su*ervise t(e li1uidation and s(ould act as u+*ire and ar%itrator in t(e allo'ance and disallo'ance of clai+s. T-e .,)ici%* *iH,i)% i!n i# % p"%+D% ic %""%n+eDen )e#i+ne) ! e# %7*i#),e p"!ce## %n) !")e"*ine## in -e *iH,i)% i!n !&

Civil Procedure Digest

-e 7%n8, ! !7'i% e -e p"!*i&e"% i!n !& *i i+% i!n# %n) ! %'!i) in.,# ice %n) %"7i "%"ine##. Dispositio-. >;#R#-OR#& t(e trial court 4udg+ent is reversed and set aside. )(e case is dis+issed 'it(out *re4udice to t(e rig(t of t(e ;ernandeB s*ouses to taAe u* 'it( t(e li1uidation court t(e settle+ent of t(eir +ortgage o%ligation. Costs against t(e *laintiffs a**ellees. SO ORD#R#D.

A2010 Avena
COMMENCEMENT OF ACTION CB V. CA @#,p"%A
FACTS Consolidated cases. Issue 'as *a3+ent of t(e correct docAet fee. regarding t(e

Prof. Victoria A.

9:

In pe"#!n%D0 in "eD0 H,%#i in "eD DE MID/ELY VS FERANDOS @SUPRAA

FACTS
;alf %rot(er a**ointed as ad+inistrator& caused t(e e7traterritorial service of su++ons to (alf si%lings living in S*ain to settle t(e 1uestion of o'ners(i* over certain *ro*erties and rig(ts in so+e +ining clai+s as Hue+ada %elieved t(at t(ose *ro*erties %elong to t(e estate of Alvaro Pastor& Sr. De !idgel3 and Pastor %ot( filed a +otion to dis+iss on t(e ground of lacA of 4urisdiction 8I) furt(er alleged t(at earnest efforts to'ards a co+*ro+ise (ave not %een +ade ON ACTIONS IN REM #ven if t(e lo'er court did not ac1uire 4urisdiction over De !idgel3& (er +otion to dis+iss 'as *ro*erl3 denied %ecause Hue+ada2s action against (er +a3%e regarded as a H,%#i in "eD '(ere jurisdiction over the person of a non.resident defendant is not necessar! and $here the service of summons is re,uired onl! for the purpose of compl!ing $ith the re,uirement of due process. E,%#i in "eD is an action et$een parties $here the direct o ject is to reach and dispose of propert! o$ed ! the parties or of some interest therein. in a 1uasi in re+ action 4urisdiction over a non resident defendant is not essential. )(e service of su++ons %3 *u%lication is re1uired +erel3 to satisf3 t(e constitutional re1uire+ent of due *rocess. )(e 4udg+ent of t(e court 'ould settle t(e title to t(e *ro*erties and to t(at e7tent it *artaAes of t(e nature of 4udg+ent in re+. )(e 4udg+ent is confined to t(e res 5*ro*erties6 and no *ersonal 4udg+ent could %e rendered against t(e non resident.

RULIN/ ON COMMENCEMENT OF ACTION It is not si+*l3 t(e filing of t(e co+*laint or a**ro*riate initiator3 *leading& %ut t(e *a3+ent of t(e *rescri%ed docAet fee& t(at vests a trial court 'it( 4urisdiction over t(e su%4ect +atter or nature of t(e action. >(ere t(e filling of t(e initiator3 *leading is not acco+*anied %3 *a3+ent of t(e docAet fee& t(e court +a3 allo' t(e *a3+ent of t(e fee 'it(in a reasona%le ti+e %ut in no case %e3ond t(e a**lica%le *rescri*tive or regle+entar3 *eriod. )(e *rescri*tive *eriod t(erein +entioned refers to t(e *eriod 'it(in '(ic( a s*ecific action +ust %e filed. It +eans t(at in ever3 case& t(e docAet fee +ust %e *aid %efore t(e la*se of t(e *rescri*tive *eriod.

/O V TON/ /.R. N!. 343>:9. PAN/ANIBAN= N!'eD7e" 92, 9BB1

NATURE Petition for revie' on Certiorari FACTS Petitioner .uana =o *urc(ased a cas(ier2s c(ecA of P500T fro+ t(e -ar #ast 8anA and )rust Co+*an3 5-#8)C6& *rivate res*ondent )ong. On =o2s instruction& t(e cas(ier2s c(ecA %ore t(e 'ords Y-inal Pa3+entEHuitclai+2 after t(e na+e of *a3ee )ong allegedl3 to insure t(at )ong 'ould (onor (is co++it+ent t(at (e 'ould no longer asA for furt(er *a3+ents for (is interest in t(e Yinfor+al %usiness *artners(i*2 '(ic( (e and s(e (ad earlier dissolved. )ong de*osited it 'it( t(e 'ords Y-inal Pa3+entEHuitclai+2 alread3 erased& (ence& it 'as not (onored. )ong2s la'3er re1uested t(at t(e c(ecA %e re*laced 'it( anot(er *a3a%le to Y.o(nson )ong -inal Settle+entEHuitclai+2 'it( sa+e a+ount& t(e %anA

c(arges to %e *aid %3 (is client )ong& '(ic( 'as denied %3 -#8)C. So& )ong filed co+*laint against -#8)C and =o at R)C !anila. -#8)C and =o ans'ered t(at erasure 'as intentional& '(ic( 4ustified t(e dis(onor and refusal to re*lace c(ecA. Case *ending& =o2s son& =eorge& filed a cri+inal co+*laint against )ong falsification of t(e c(ecA. )(e cri+inal co+*laint 'as dis+issed. )ong filed Y!otion for "eave to -ile a Su**le+ental Co+*laint and to Ad+it t(e Attac(ed Su**le+ental Co+*laint2 '(ic( Su**le+ental Co+*laint alleged t(at S*s. =o2s Yused2 t(eir son to file t(e cri+inal co+*laint against (i+ '(ic( caused da+ages& (ence& t(e *ra3er for an increase in t(e a+ount of !D and #D soug(t to %e recovered fro+ P2.5! to P55! and *ra3ing for t(e a'ard of AD of P5?T. R)C granted t(e +otion and ad+itted t(e Su**le+ental Co+*laint. =o filed a !anifestation of De*osit and de*osited to t(e R)C ClerA of Court P500T re*resenting t(e a+ount of t(e c(ecA& ;su ject to the condition that it shall remain deposited until the disposition of the case.< !-Rs of -#8)C and =o 'ere denied. One of t(e defenses of -#8)C and =o@ )ong cannot *rosecute (is Su**le+ental Co+*laint& and t(e sa+e s(ould %e dis+issed& unless t(e corres*onding docAet fee and legal fees for t(e +onetar3 clai+s of P55! are *aid for. On -e%. 5& 1///& R)C& acting on t(e ver%al +otion of )ong2s counsel& allo'ed t(e release of *etitioners2 P500T de*osit to )ong. "ater& R)C& in t(e interest of 4ustice and %ecause of t(e (uge a+ount of outla3 involved 5t(e Court considers t(e %usiness cli+ate and t(e *eso crunc( *revailing6& allo'ed )ong to first de*osit P25T on or %efore Dec.15& 1/// and P20T ever3 +ont( t(ereafter until t(e full a+ount of docAet fees is *aid& and Fonl3 t(en s(all t(e de*osits %e considered as *a3+ent of docAet fees.L -#8)C and =o filed !-R %ut 'as denied. ;ence& t(is case. ISSUE >O< res*ondent 4udge and t(e CA erred in allo'ing *rivate res*ondent to *a3 t(e docAet fee on a staggered %asis. HELD <O Ratio DocAet fees s(ould %e *aid u*on t(e filing of t(e initiator3 *leadings. ;o'ever& for cogent reasons to %e deter+ined %3 t(e trial 4udge& staggered *a3+ent t(ereof 'it(in a reasona%le *eriod +a3 %e allo'ed. Inless grave a%use of discretion is

Civil Procedure Digest

de+onstrated& t(e discretion of t(e trial 4udge in granting staggered *a3+ent s(all not %e distur%ed. Reasoning An action co++ences fro+ t(e filing of t(e original co+*laint and t(e *a3+ent of t(e *rescri%ed docAet fees. ;o'ever& '(ere t(e filing of t(e initiator3 *leading is not acco+*anied %3 *a3+ent of t(e docAet fee& t(e court +a3 allo' *a3+ent of t(e fee 'it(in a reasona%le ti+e %ut in no case %e3ond t(e a**lica%le *rescri*tive or regle+entar3 *eriod. =Sun 4nsurance 0ffice -td. 7 Asuncion> In ot(er 'ords& '(ile t(e *a3+ent of t(e *rescri%ed docAet fee is a 4urisdictional re1uire+ent& even its non*a3+ent at t(e ti+e of filing does not auto+aticall3 cause t(e dis+issal of t(e case& as long as t(e fee is *aid 'it(in t(e a**lica%le *rescri*tive or regle+entar3 *eriod$ +ore so '(en t(e *art3 involved de+onstrates a 'illingness to a%ide %3 t(e rules *rescri%ing suc( *a3+ent. Disposition Petition is D#<I#D.

A2010 Avena
;inog III. Att3. Veronico =. Petalcorin t(en entered (is a**earance as ne' counsel for 8ertuldo. On Se*te+%er 22& 1//?& Att3. Petalcorin filed a +otion to e7*unge t(e co+*laint fro+ t(e record and nullif3 all court *roceedings on t(e ground t(at *rivate res*ondents failed to s*ecif3 in t(e co+*laint t(e a+ount of da+ages clai+ed so as to *a3 t(e correct docAet fees$ and t(at under !anc(ester Develo*+ent Cor*oration vs. Court of A**eals& non *a3+ent of t(e correct docAet fee is 4urisdictional. It 'as furt(er alleged t(at t(e *rivate res*ondents failed to *a3 t(e correct docAet fee since t(e +ain su%4ect +atter of t(e case cannot %e esti+ated as it is for recover3 of o'ners(i*& *ossession and re+oval of construction. Private res*ondents o**osed t(e +otion to e7*unge on t(e follo'ing grounds@ 5a6 said +otion 'as filed +ore t(an seven 3ears fro+ t(e institution of t(e case$ 5%6 Att3. Petalcorin (as not co+*lied 'it( Section 19& Rule 0 of t(e Rules of Court '(ic( *rovides t(at t(e deat( of t(e original defendant re1uires a su%stitution of *arties %efore a la'3er can (ave legal *ersonalit3 to re*resent a litigant and t(e +otion to e7*unge does not +ention of an3 s*ecific *art3 '(o+ (e is re*resenting Vt(is 'as later on co+*lied 'it( %3 Att3. PetalcorinW$ 5c6 collecti%le fees due t(e court can %e c(arged as lien on t(e 4udg+ent$ and 5d6 considering t(e la*se of ti+e& t(e +otion is +erel3 a dilator3 sc(e+e e+*lo3ed %3 *etitioners. In t(eir Re4oinder& *etitioners +anifested t(at t(e la*se of ti+e does not vest t(e court 'it( 4urisdiction over t(e case due to failure to *a3 t(e correct docAet fees. As to t(e contention t(at deficienc3 in *a3+ent of docAet fees can %e +ade as a lien on t(e 4udg+ent& *etitioners argued t(at t(e *a3+ent of filing fees cannot %e +ade de*endent on t(e result of t(e action taAen. On .anuar3 21& 1///& t(e trial court ordered t(e co+*laint to %e e7*unged fro+ t(e records and t(e nullification of all court *roceedings taAen for failure to *a3 t(e correct docAet fees. On .anuar3 2?& 1///& u*on *a3+ent of deficienc3 docAet fee& *rivate res*ondents filed a +anifestation 'it( *ra3er to reinstate t(e case. Petitioners o**osed t(e reinstate+ent %ut on !arc( 22& 1///& t(e trial court issued t(e first assailed Order reinstating t(e case. On .ul3 14& 1///& *etitioners +anifested t(at t(e trial court (aving e7*unged t(e co+*laint and nullified all court *roceedings& t(ere is no valid case and t(e co+*laint s(ould not %e ad+itted for failure

Prof. Victoria A.

94

HEIRS OF HINO/ V MELICOR /.R. N!. 3:B>4: AUSTRIA-MARTINEZ= Ap"i* 39, 9BB4
NATURE Petition for certiorari and *ro(i%ition FACTS Private res*ondents Custodio& Rufo& )o+as and ;onorio& all surna+ed 8alane o'n a 1&0// s1uare +eter *arcel of land situated in !ala3o <orte& Cortes& 8o(ol& designated as "ot <o. 1:14. So+eti+e in !arc( 1/?0& t(e3 allo'ed 8ertuldo ;inog to use a *ortion of t(e said *ro*ert3 for a *eriod of ten 3ears and construct t(ereon a s+all (ouse of lig(t +aterials at a no+inal annual rental of P100.00 onl3& considering t(e close relations of t(e *arties. After t(e e7*iration of t(e ten 3ear *eriod& t(e3 de+anded t(e return of t(e occu*ied *ortion and re+oval of t(e (ouse constructed t(ereon %ut 8ertuldo refused and instead clai+ed o'ners(i* of t(e entire *ro*ert3 %3 virtue of a Deed of A%solute Sale dated .ul3 2& 1/?0& e7ecuted %3 one )o+as Pa(ac 'it( t(e Ano'ledge and confor+it3 of *rivate res*ondents. Accordingl3& *rivate res*ondents filed a co+*laint for FRecover3 of O'ners(i* and Possession& Re+oval of Construction and Da+agesL against 8ertuldo. )rial ensued %ut on .une 24& 1//?& 8ertuldo died 'it(out co+*leting (is evidence. Att3. Sul*icio A. )ina+*a3 'it(dre' as counsel for 8ertuldo as (is services 'ere ter+inated %3 *etitioner 8ertuldo

to *a3 t(e correct docAet fees$ t(at t(ere s(ould %e no case to %e reinstated and no case to *roceed as t(ere is no co+*laint filed. After t(e su%+ission of *rivate res*ondents2 o**osition and *etitioners2 re4oinder& t(e trial court issued t(e second assailed Order on August 10& 1///& essentiall3 den3ing *etitioners2 +anifestationEre4oinder. )(e trial court (eld t(at t(e issues raised in suc( +anifestationEre4oinder are *racticall3 t(e sa+e as t(ose raised in t(e a+ended +otion to e7*unge '(ic( (ad alread3 %een *assed u*on in t(e Order dated .anuar3 21& 1///. !oreover& t(e trial court o%served t(at t(e Order dated !arc( 22& 1/// '(ic( reinstated t(e case 'as not o%4ected to %3 *etitioners 'it(in t(e regle+entar3 *eriod or even t(ereafter via a +otion for reconsideration des*ite recei*t t(ereof on !arc( 29& 1///. On August 25& 1///& *etitioners filed a +otion for reconsideration %ut t(e sa+e 'as denied %3 t(e trial court in its t(ird assailed Order dated Octo%er 15& 1///. ;ence& t(is *etition. ISSUE >O< grave a%use of discretion 'as co++itted %3 t(e trial court in reinstating t(e co+*laint u*on t(e *a3+ent of deficienc3 docAet fees HELD <O )(e unavaila%ilit3 of t(e 'rit of certiorari and *ro(i%ition in t(is case is %orne out of t(e fact t(at *etitioners *rinci*all3 assail t(e Order dated !arc( 22& 1/// '(ic( t(e3 never soug(t reconsideration of& in due ti+e& des*ite recei*t t(ereof on !arc( 29& 1///. Instead& *etitioners 'ent t(roug( t(e +otion of filing a su**le+ental *leading and onl3 '(en t(e latter 'as denied& or after +ore t(an t(ree +ont(s (ave *assed& did t(e3 raise t(e issue t(at t(e co+*laint s(ould not (ave %een reinstated in t(e first *lace %ecause t(e trial court (ad no 4urisdiction to do so& (aving alread3 ruled t(at t(e co+*laint s(all %e e7*unged. After recogniBing t(e 4urisdiction of t(e trial court %3 seeAing affir+ative relief in t(eir +otion to serve su**le+ental *leading u*on *rivate res*ondents& *etitioners are effectivel3 %arred %3 esto**el fro+ c(allenging t(e trial court2s 4urisdiction. If a *art3 invoAes t(e 4urisdiction of a court& (e cannot t(ereafter c(allenge t(e court2s 4urisdiction in t(e sa+e case. )o rule ot(er'ise 'ould a+ount to s*eculating on t(e fortune of litigation& '(ic( is against t(e *olic3 of t(e Court.

Civil Procedure Digest

It +ust %e clarified t(at t(e said order is %ut a resolution on an incidental +atter '(ic( does not touc( on t(e +erits of t(e case or *ut an end to t(e *roceedings. It is an interlocutor3 order since t(ere leaves so+et(ing else to %e done %3 t(e trial court 'it( res*ect to t(e +erits of t(e case. )(e re+ed3 against an interlocutor3 order is generall3 not to resort fort('it( to certiorari& %ut to continue 'it( t(e case in due course and& '(en an unfavora%le verdict is (anded do'n& to taAe an a**eal in t(e +anner aut(oriBed %3 la'. Onl3 '(en t(e court issued suc( order 'it(out or in e7cess of 4urisdiction or 'it( grave a%use of discretion and '(en t(e assailed interlocutor3 order is *atentl3 erroneous and t(e re+ed3 of a**eal 'ould not afford ade1uate and e7*editious relief 'ill certiorari %e considered an a**ro*riate re+ed3 to assail an interlocutor3 order. Suc( s*ecial circu+stances are a%solutel3 'anting in t(e *resent case. Plainl3& '(ile t(e *a3+ent of t(e *rescri%ed docAet fee is a 4urisdictional re1uire+ent& even its non *a3+ent at t(e ti+e of filing does not auto+aticall3 cause t(e dis+issal of t(e case& as long as t(e fee is *aid 'it(in t(e a**lica%le *rescri*tive or regle+entar3 *eriod& +ore so '(en t(e *art3 involved de+onstrates a 'illingness to a%ide %3 t(e rules *rescri%ing suc( *a3+ent. )(us& '(en insufficient filing fees 'ere initiall3 *aid %3 t(e *laintiffs and t(ere 'as no intention to defraud t(e govern+ent& t(e !anc(ester rule does not a**l3. Inder t(e *eculiar circu+stances of t(is case& t(e reinstate+ent of t(e co+*laint 'as 4ust and *ro*er considering t(at t(e cause of action of *rivate res*ondents& %eing a real action& *rescri%es in t(irt3 3ears& and *rivate res*ondents did not reall3 intend to evade t(e *a3+ent of t(e *rescri%ed docAet fee %ut si+*l3 contend t(at t(e3 could not %e faulted for inade1uate assess+ent %ecause t(e clerA of court +ade no notice of de+and or reassess+ent. )(e3 'ere in good fait( and si+*l3 relied on t(e assess+ent of t(e clerA of court. >(ile t(e docAet fees 'ere %ased onl3 on t(e real *ro*ert3 valuation& t(e trial court ac1uired 4urisdiction over t(e action& and 4udg+ent a'ards '(ic( 'ere left for deter+ination %3 t(e court or as +a3 %e *roven during trial 'ould still %e su%4ect to additional filing fees '(ic( s(all constitute a lien on t(e 4udg+ent. It 'ould t(en %e t(e res*onsi%ilit3 of t(e ClerA of Court of t(e trial court or (is dul3 aut(oriBed de*ut3 to enforce said lien and assess and collect t(e additional fees.

A2010 Avena
CAUSE OF ACTION, DEFINED FELIPE V LEUTERIO /1 P(il 4?2 8engBon$ !a3 00& 1/52
NATURE Original Action in t(e Su*re+e Court. Certiorari FACTS? In an oratorical contest (eld in <aga& Ca+arinesD Sur& first (onor 'as given %3 t(e %oard of five 4udges to <estor <osce& and second (onor to #++a I+*erial. Si7 da3s later& #++a asAed t(e court of first instance of t(at *rovince to reverse t(e a'ard& alleging t(at one of t(e 4udges (ad fallen into error in grading (er *erfor+ance. After a (earing& and over t(e o%4ection. of t(e ot(er four 4udges of t(e contest& t(e court declared #++a I+*erial 'inner of t(e first *lace ISSUE >O< t(e courts (ave t(e aut(orit3 to reverse t(e a'ard of t(e %oard of 4udges of an oratorical co+*etition HELD N!. Reasoning.. )(e Court (eld@ F>e o%serve t(at in assu+ing 4urisdiction over t(e +atter& t(e res*ondent 4udge reasoned out t(at '(ere t(ere is a 'rong t(ere is a re+ed3 and t(at courts of first instance are courts of general 4urisdiction. )(e fla' in (is reasoning lies in t(e assu+*tion t(at I+*erial suffered so+e 'rong at t(e (ands of t(e %oard of 4udges. If at all& t(ere 'as error on t(e *art of one 4udge& at +ost. #rror and 'rong do not +ean t(e sa+e t(ing. ,>rong, as used in t(e aforesaid legal *rinci*le is t(e de*rivation or violation of a rig(t. As stated %efore& a contestant (as no rig(t to t(e *riBe unless and until (e or s(e is declared 'inner %3 t(e %oard of referees or 4udges =ranting t(at I+*erial suffered so+e loss or in4ur3& 3et in la' t(ere are instances of ,da+nu+ a%s1ue in4uria,. )(is is one of t(e+. If fraud or +alice (ad %een *roven& it 'ould %e a different *ro*osition. 8ut t(en (er action s(ould %e directed against t(e individual 4udge or 4udges '(o fraudulentl3 or +aliciousl3 in4ured (er. <ot against t(e ot(er 4udges

Prof. Victoria A.

95

Disposition. )(e 4udiciar3 (as no *o'er to reverse t(e a'ard of t(e %oard of 4udges of an oratorical contest. -or t(at +atter it 'ould not interfere in literar3 contests& %eaut3 contests and si+ilar co+*etitions

SANTIA/O V BAUTISTA 19 SCRA 3;; BARREDO ? MARCH 1B, 3>2B

NATURE A**eal fro+ t(e order of t(e Court of -irst Instance of Cota%ato dis+issing& on a +otion to dis+iss& its Civil Case <o. 2012 for certiorari& in4unction and da+ages on t(e ground t(at t(e co+*laint t(erein states no cause of action& and fro+ t(e su%se1uent order of t(e court a 1uo den3ing t(e +otion for t(e reconsideration of t(e said order of dis+issal. FACTS A**ellant )eodoro Santiago& .r. 'as a *u*il in =rade Si7 at t(e Sero #le+entar3 Sc(ool in Cota%ato Cit3. >(en t(e sc(ool 3ear 'as a%out to end t(e ,Co++ittee On )(e Rating Of Students -or ;onor, 'as constituted %3 t(e teac(ers concerned at said sc(ool for t(e *ur*ose of selecting t(e ,(onor students, of its graduating class. )(e a%ove na+ed co++ittee deli%erated and finall3 ad4udged )eodoro C. Santiago& .r. as t(ird (onor. )(e sc(oolDs graduation e7ercises 'ere t(ereafter set for !a3 21& 1/95$ %ut t(ree da3s %efore t(at date& t(e ,t(ird *lacer, )eodoro Santiago& .r.& re*resented %3 (is +ot(er& and 'it( (is fat(er as counsel& soug(t t(e invalidation of t(e ,ranAing of (onor students, t(us +ade& %3 instituting t(e civil case in t(e Court of -irst Instance of Cota%ato& against t(e co++ittee +e+%ers along 'it( t(e District Su*ervisor and t(e Acade+ic Su*ervisor of t(e *lace. SANTIA/O# %**e+e) -% ? 516 Plaintiff *etitioner )eodoro C. Santiago& .r. is a si7t( grader at t(e Sero #le+entar3 Sc(ool in Cota%ato Cit3 sc(eduled to %e graduated on !a3 21st& 1/95 'it( t(e (onor ranA of t(ird *lace& '(ic( is dis*uted$ 526 )(at t(e teac(ers of t(e sc(ool (ad %een +ade res*ondents as t(e3 co+*ose t(e ,Co++ittee on t(e Rating of Student for ;onor,& '(oserave a%use of official discretion is t(e su%4ect of suit& '(ile t(e ot(er defendants 'ere included as Princi*al& District Su*ervisor and Acade+ic Su*ervisor of t(e sc(ool$ 506 )(at )eodoro Santiago& .r. (ad %een a consistent (onor *u*il fro+ =rade I to =rade V of t(e Sero #le+entar3 Sc(ool&

Civil Procedure Digest

'(ile Patricia "iPgat 5second *lacer in t(e dis*uted ranAing in =rade VI6 (ad never %een a close rival of *etitioner %efore& e7ce*t in =rade V '(erein s(e ranAed t(ird$ 546 )(at Santiago& .r. (ad %een *re4udiced& '(ile (is closest rival (ad %een so +uc( %enefited& %3 t(e circu+stance t(at t(e latter& Socorro !edina& 'as coac(ed and tutored during t(e su++er vacation of 1/94 %3 !rs. Al*as '(o %eca+e t(e teac(er of %ot( *u*ils in #nglis( in =rade VI& resulting in t(e far lead !edina o%tained over t(e ot(er *u*il$ 556 )(at t(e co++ittee referred to in t(is case (ad %een illegall3 constituted as t(e sa+e 'as co+*osed of all t(e =rade VI teac(ers onl3& in violation of t(e Service !anual for )eac(ers of t(e 8ureau of Pu%lic Sc(ools '(ic( *rovides t(at t(e co++ittee to select t(e (onor students s(ould %e co+*osed of all teac(ers in =rades V and VI$ 596 )(at t(ere are direct and circu+stantial +atters& '(ic( s(all %e *roven during t(e trial& '(erein res*ondents (ave e7ercised grave a%use of discretion and irregularities& suc( as t(e c(anging of t(e final ratings on t(e grading s(eets of Socorro !edina and Patricia "iPgat$ 5:6 )(at t(ere 'as a unani+ous agree+ent and understanding a+ong t(e res*ondent teac(ers to insult and *re4udice t(e second and t(ird (onors %3 rating Socorro !edina 'it( a *erfect score& '(ic( is ver3 unnatural$ 5?6 )(at t(e 'ords ,first *lace, in *etitionerDs certificate in =rade I 'as erased and re*laced 'it( t(e 'ords ,second *lace,& '(ic( is an instance of t(e un4ust and discri+inating a%uses co++itted %3 t(e res*ondent teac(ers in t(e dis*uted selection of (onor *u*ils t(e3 +ade$ 5/6 )(at *etitioner *ersonall3 a**ealed t(e +atter to t(e Sc(ool Princi*al& to t(e District Su*ervisor& and to t(e Acade+ic Su*ervisor& %ut said officials ,*assed t(e %ucA to eac( ot(er, to dela3 (is grievances& and as to a**eal to (ig(er aut(orities 'ill %e too late& t(ere is no ot(er s*eed3 and ade1uate re+ed3 under t(e circu+stances$ and& t(at *etitioner and (is *arents suffered +ental and +oral da+ages in t(e a+ount of P10&000.00$ and 5106 )(e *etitioners *ra3ed to t(e Court to set aside t(e final list of (onor students in =rade VI of t(e Sero #le+entar3 Sc(ool for t(at sc(ool 3ear 1/94 1/95& and& during t(e *endenc3 of t(e suit& to en4oin t(e res*ondent teac(ers fro+ officiall3 and for+all3 *u%lis(ing and *roclai+ing t(e said (onor *u*ils in =rade VI in t(e graduation e7ercises t(e sc(ool 'as sc(eduled to (old on t(e 21st of !a3 of t(at 3ear 1/95. "C@ denied in4unction

A2010 Avena
As sc(eduled& t(e graduation e7ercises of t(e Sero #le+entar3 Sc(ool for t(e sc(ool 3ear 1/94 1/95 'as (eld on !a3 21& 'it( t(e sa+e *rotested list of (onor students. )(e Court t(en re1uired t(e res*ondents to ans'er t(e *etition 'it(in 10 da3s %ut res*ondents +oved for t(e dis+issal of t(e case instead on t(e grounds 516 t(at t(e action for certiorari 'as i+*ro*er& and 526 t(at even assu+ing t(e *ro*riet3 of t(e action& t(e 1uestion %roug(t %efore t(e court (ad alread3 %eco+e acade+ic. )(is 'as o**osed %3 *etitioner. )(e +otion to dis+iss 'as granted. I*on recei*t of a co*3 of t(e a%ove 1uoted order& t(e *etitioner +oved for t(e reconsideration t(ereof& %ut t(e sa+e 'as dis+issed. Petitioners a**ealed ISSUE0S >O< t(e said co++ittee of teac(ers does falls 'it(in t(e categor3 of t(e tri%unal& %oard& or officer e7ercising 4udicial functions conte+*lated %3 Rule 95 HELD? 1. <O 5t(erefore& no cause of action e7ists6 Reasoning. In t(is 4urisdiction certiorari is a s*ecial civil action instituted against Dan3 tri%unal& %oard& or officer e7ercising 4udicial functions.D A 4udicial function is an act *erfor+ed %3 virtue of 4udicial *o'ers$ t(e e7ercise of a 4udicial function is t(e doing of so+et(ing in t(e nature of t(e action of t(e court. In order t(at a s*ecial civil action of certiorari +a3 %e invoAed in t(is 4urisdiction t(e follo'ing circu+stances +ust e7ist@ 516 t(at t(ere +ust %e a s*ecific controvers3 involving rig(ts of *ersons or *ro*ert3 and said controvers3 is %roug(t %efore a tri%unal& %oard or officer for (earing and deter+ination of t(eir res*ective rig(ts and o%ligations$ 526 t(e tri%unal& %oard or officer %efore '(o+ t(e controvers3 is %roug(t +ust (ave t(e *o'er and aut(orit3 to *ronounce 4udg+ent and render a decision on t(e controvers3 construing and a**l3ing t(e la's to t(at end$ 506 t(e tri%unal& %oard or officer +ust *ertain to t(at %ranc( of t(e sovereign *o'er '(ic( %elongs to t(e 4udiciar3& or at least& '(ic( does not %elong to t(e legislative or e7ecutive de*art+ent. It is evident& u*on t(e foregoing aut(orities& t(at t(e so called co++ittee on t(e rating of students for (onor '(ose actions are 1uestioned in t(is case e7ercised neit(er 4udicial nor 1uasi 4udicial functions in t(e *erfor+ance of its assigned tasA. 8efore a tri%unal %oard& or officer +a3 e7ercise 4udicial or

Prof. Victoria A.

92

1uasi 4udicial acts& it is necessar3 t(at t(ere %e a la' t(at give rise to so+e s*ecific rig(ts of *ersons or *ro*ert3 under '(ic( adverse clai+s to suc( rig(ts are +ade& and t(e controvers3 ensuing t(erefro+ is %roug(t& in turn& %efore t(e tri%unal& %oard or officer clot(ed 'it( *o'er and aut(orit3 to deter+ine '(at t(at la' is and t(ereu*on ad4udicate t(e res*ective rig(ts of t(e contending *arties. )(ere is not(ing on record a%out an3 rule of la' t(at *rovides t(at '(en teac(ers sit do'n to assess t(e individual +erits of t(eir *u*ils for *ur*oses of rating t(e+ for (onors& suc( function involves t(e deter+ination of '(at t(e la' is and t(at t(e3 are t(erefore auto+aticall3 vested 'it( 4udicial or 1uasi 4udicial functions. Dispositive. )(e 4udg+ent a**ealed fro+ is affir+ed& 'it( costs against a**ellant.

SA/RADA V NATIONAL COCONUT CORP. /.R. L-1245 LABRADOR= J,ne 1B, 3>49
NATURE Action to recover *iece of *ro*ert3 FACTS )(e land %elongs to t(e *laintiff& in '(ose na+e t(e title 'as registered %efore t(e 'ar. During t(e .a*anese occu*ation& t(e land 'as ac1uired %3 a .a*anese cor*oration& )ai'an )eAAos(o& for t(e su+ of P140&000& and t(ereu*on title t(ereto issued in its na+e. After li%eration& t(e Alien Pro*ert3 Custodian of t(e Inited States of A+erica tooA *ossession& control& and custod3 t(ereof under section 12 of t(e )rading 'it( t(e #ne+3 Act& for t(e reason t(at it %elonged to an ene+3 national. During t(e 3ear 1/49 t(e *ro*ert3 'as occu*ied %3 t(e Co*ra #7*ort !anage+ent Co+*an3 under a custodians(i* agree+ent 'it( Inited States Alien Pro*ert3 Custodian& and '(en it vacated t(e *ro*ert3 it 'as occu*ied %3 t(e defendant (erein. )(e defendant 'as aut(oriBed to re*air t(e 'are(ouse on t(e land& and actuall3 s*ent t(ereon t(e re*airs t(e su+ of P29&?/?.2:. Plaintiff %roug(t an action in court to annul t(e sale of *ro*ert3 of )ai'an )eAAos(o& and recover its *ossession. )(e case did not co+e for trial %ecause t(e *arties *resented a 4oint *etition in '(ic( it is clai+ed %3 *laintiff t(at t(e sale in favor of t(e

Civil Procedure Digest

)ai'an )eAAos(o 'as null and void %ecause it 'as e7ecuted under t(reats& duress& and inti+idation& and it 'as agreed t(at t(e title issued in t(e na+e of t(e )ai'an )eAAos(o %e cancelled and t(e original title of *laintiff re issued. )(e *resent action is to recover t(e reasona%le rentals fro+ August& 1/49& t(e date '(en t(e defendant %egan to occu*3 t(e *re+ises& to t(e date it vacated it. ISSUE0S 1. >O< defendant is lia%le for rent of t(e said *eriod HELD 1. <o

A2010 Avena
Ratio If defendant a**ellant is lia%le at all& its o%ligations& +ust arise fro+ an3 of t(e four sources of o%ligations& na+le3& la'& contract or 1uasi contract& cri+e& or negligence. 5Article 10?/& S*anis( Civil Code.6 Reasoning Defendant a**ellant is not guilt3 of an3 offense at all& %ecause it entered t(e *re+ises and occu*ied it 'it( t(e *er+ission of t(e entit3 '(ic( (ad t(e legal control and ad+inistration t(ereof& t(e Alien Pro*ert3 Ad+inistration. <eit(er 'as t(ere an3 negligence on its *art. )(ere 'as also no *rivit3 5of contract or o%ligation6 %et'een t(e Alien Pro*ert3 Custodian and t(e )ai'an )eAAos(o& suc( t(at t(e Alien Pro*ert3 Custodian or its *er+ittee 5defendant a**ellant6 +a3 %e (eld res*onsi%le for t(e su**osed illegalit3 of t(e occu*ation of t(e *ro*ert3 %3 t(e said )ai'an )eAAos(o. )(e Alien Pro*ert3 Ad+inistration (ad t(e control and ad+inistration of t(e *ro*ert3 not as successor to t(e interests of t(e ene+3 (older of t(e title& t(e )ai'an )eAAos(o& %ut %3 e7*ress *rovision of la'. <eit(er is it a trustee of t(e for+er o'ner& t(e *laintiff a**ellee (erein& %ut a trustee of t(en =overn+ent of t(e Inited States& in its o'n rig(t& to t(e e7clusion of& and against t(e clai+ or title of& t(e ene+3 o'ner. -ro+ August& 1/49& '(en defendant a**ellant tooA *ossession& to t(e late of 4udg+ent on -e%ruar3 2?& 1/4?& Alien Pro*ert3 Ad+inistration (ad t(e a%solute control of t(e *ro*ert3 as trustee of t(e =overn+ent of t(e Inited States& 'it( *o'er to dis*ose of it %3 sale or ot(er'ise& as t(oug( it 'ere t(e a%solute o'ner. )(erefore& even if defendant a**ellant 'ere lia%le to t(e Alien Pro*ert3 Ad+inistration for rentals& t(ese 'ould not accrue to t(e %enefit of t(e *laintiff a**ellee& t(e o'ner& %ut to t(e Inited States =overn+ent. Disposition >(erefore& t(e *art of t(e 4udg+ent a**ealed fro+& '(ic( sentences defendant a**ellant to *a3 rentals fro+ August& 1/49& to -e%ruar3 2?& 1/4/& is (ere%3 reversed. In all ot(er res*ects t(e 4udg+ent is affir+ed. Costs of t(is a**eal s(all %e against t(e *laintiff a**ellee.

Prof. Victoria A.

9;

NATURE Petition for certiorari to set aside t(e order of t(e res*ondent 4udge den3ing t(e +otion to dis+iss t(e co+*laint of res*ondents FACTS res*ondents filed a co+*laint seeAing to recover a+ounts of +one3 due to t(e+ fro+ t(e *etitioner %efore t(e out%reaA of t(e 'ar. t(e ground of t(e +otion to dis+iss filed %3 t(e *etitioners is t(at t(e co+*laint of t(e res*ondents does not state facts sufficient to constitute a cause of action& %ecause t(e *laintiffs (ave no rig(t to de+and t(e *a3+ent of t(e defendants2 de%ts until after t(e ter+ination or legal cessation of t(e +oratoriu+ *rovided in #O <o. 02@ Enforcement of pa!ment of pa!ments of all de ts and other monetar! o ligations pa!a le $ithin the Philippines# e%cept de ts and other monetar! o ligations# entered into in an! area after declaration ! Presidential Proclamation# that such area has een freed from enem! occupation and control# is temporaril! suspended pending action ! the Common$ealth /overnment. ISSUE0S 1. >O< co+*lain of t(e res*ondents states facts sufficient to constitute a cause of action HELD 1. <O Ratio. A cause of action is an act or o+ission of one *art3 in violation of t(e legal rig(ts of anot(er& and its essential ele+ents are@ 1. legal rig(t of *laintiff& 2. correlative o%ligation of t(e defendant& and 0. act or o+ission of defendant in violation of said legal rig(t. Reasoning. In t(is case& t(ere 'as no o+ission on t(e *art of t(e defendant in vilation of t(e legal rig(ts of t(e *laintiffs to %e *aid& %ecause #O <o. 02 said de%ts are not 3et *a3a%le or t(eir *a3+ent cannot %e enforced until t(e legal cessation of t(e +oratoriu+& '(ic( is still in force. 666BUT @n! "e*% e) ! !pic C%,#e !& Ac i!nA? even if t(e co+*laint of t(e *laintiffs res*ondents states no cause of action& t(e SC (olds t(at t(e facts stated in t(e *etition for certiorari and *ro(i%ition filed in t(e *resent case do <O) entitle t(e *etitioner to said reliefs. 8ecause 4udge ;AD 4urisdiction and did not e7ceed it or act 'it( grave a%use of discretion in den3ing t(e *etitioner2s +otion to dis+iss. )(is Court& in actions of certiorari& can onl3 deter+ine >O< t(e court acted 'it(out or in e7cess

MA-AO SU/AR CENTRAL CO V BARRIOS 2> PHIL 555 FERIA= DeceD7e" 1, 3>:2

Civil Procedure Digest

of its 4urisdiction or 'it( grave a%use of discretion. SoX dis*osition@ Disposition Petition is denied.

A2010 Avena
fro+ defendants !I<CI and DA<-OSS for t(e deliver3 of t(e t'o unit -re1uenc3 Converter. 83 reason of t(e dela3 to deliver& CCC infor+ed !I<CI in a letter dated 10 <ove+%er 1//:& of t(e *laintiff2s intention to c%nce* t(e said order. As a conse1uence t(ereof& CCC (as suffered an actual su%stantial *roduction losses in t(e a+ount P?&094&000.00 due to t(e ti+e lost and dela3 in t(e deliver3 of t(e said t'o 526 unit -re1uenc3 ConverterEInverter. "iAe'ise& *laintiff CCC 'as co+*elled to looA for anot(er su**lier. On -e%ruar3 1:& 1///& DA<-OSS filed a +otion to dis+iss t(e co+*laint on t(e ground t(at it did not state a cause of action. )(e court a 1uo denied t(e +otion to dis+iss in its orderV4W dated !a3 2?& 1///. Danfoss filed a +otion for reconsideration of t(e order %ut it 'as denied. On a**eal to t(e CA& t(e latter also denied Danfoss2 *etition for lacA of +erit. )(e CA liAe'ise denied *etitioner2s +otion for reconsideration& (ence& t(is a**eal. ISSUE >O< t(e CA erred in affir+ing t(e denial %3 t(e court a 1uo of *etitioner2s +otion to dis+iss t(e co+*laint for da+ages on t(e ground t(at it failed to state a cause of action. HELD C#S. Ratio. In order to sustain a dis+issal on t(e ground of lacA of cause of action& t(e insufficienc3 +ust a**ear on t(e face of t(e co+*laint. And t(e test of t(e sufficienc3 of t(e facts alleged in t(e co+*laint to constitute a cause of action is '(et(er or not& ad+itting t(e facts alleged& t(e court can render a valid 4udg+ent t(ereon in accordance 'it( t(e *ra3er of t(e co+*laint. -or t(is *ur*ose& t(e +otion to dis+iss +ust (3*ot(eticall3 ad+it t(e trut( of t(e facts alleged in t(e co+*laint. Reasoning. After a careful *erusal of t(e allegations in res*ondent2s co+*laint for da+ages against *etitioner& 'e rule t(at t(e sa+e failed to state a cause of action. >(en res*ondent sued *etitioner for da+ages& *etitioner (ad not violated an3 rig(t of res*ondent fro+ '(ic( a cause of action (ad arisen. Res*ondent onl3 sur+ised t(at *etitioner 'ould not %e a%le to deliver t(e t'o units fre1uenc3 converterEinverter on t(e date agreed u*on %3 t(e+. 8ased on t(is a**re(ension& it cancelled its order si7 da3s *rior to t(e agreed date of deliver3. ;o' could res*ondent (old *etitioner lia%le for da+ages 516

Prof. Victoria A.

9>

DANFOSS V. CONTINENTAL CEMENT CORPORATION /.R. NO. 3:12;; CORONA= SEPT. > 9BB4
NATURE )(is is a *etition for revie' on certiorari under Rule 45 of t(e 1//: Rules on Civil Procedure of t(e decision of t(e Court of A**eals and its resolution den3ing *etitioner2s +otion for reconsideration. FACTS On <ove+%er 5& 1//?& res*ondent Continental Ce+ent Cor*oration 5CCC6 filed a co+*laint for da+ages against *etitioner DA<-OSS and !ec(atronics Instru+ents and Controls& Inc. 5!I<CI6 %efore t(e R)C of HC& 8ranc( ?0& alleging t(at@ 516 CCC *urc(ased fro+ !I<CI t'o Danfoss 8rand -re1uenc3 ConverterEInverter for use in t(e -inis( !ill of its Ce+ent Plant. )(e said *urc(ase is covered %3 a Purc(ase Order '(ic( indicated t(e deliver3 date to %e 'it(in eig(t 5?6 to ten 5106 'eeAs fro+ t(e o*ening of t(e letter of credit. CCC e7ecuted and o*ened a letter of credit under in favor of DA<-OSS I<DIS)RI#S P)#. ")D$ 526 CCC t(roug( a letter dated : <ove+%er 1//:& reiterated its de+and t(at ever3 dela3 in t(e s(i*+ent of t(e t'o 526 unit -re1uenc3 ConverterEInverter 'ill cause su%stantial losses in its o*erations and re1uested for t(e earl3 'orA out and t(e i++ediate s(i*+ent of t(e fre1uenc3 converter to avoid furt(er loss to t(e co+*an3$ ;o'ever& on / <ove+%er 1//:& DA<-OSS& infor+ed t(e ot(er !I<CI t(roug( fa7 trans+ission& co*3 furnis(ed *laintiff CCC& t(at t(e reason '(3 DA<-OSS (as deliver3 *ro%le+s 'as t(at so+e of t(e su**lied co+*onents for t(e ne' V") 5000 series did not +eet t(e agreed 1ualit3 standard. )(at +eans t(at t(eir factor3 'as canvassing for anot(er su**lier. And at t(at +o+ent& t(ere 'as no clear +essage '(en nor+al *roduction 'ill resu+e. Due to t(is infor+ation received& CCC sur+ised t(at defendants !I<CI and DA<-OSS could not %e a%le to deliver t(e t'o 526 unit -re1uenc3 Converter 'it(in t(e +a7i+u+ *eriod of ten 5106 'eeAs *eriod fro+ t(e o*ening of t(e "etter of Credit& as one of t(e conditions in t(e Purc(ase Order. )(ereafter& no definite co++it+ent 'as received %3 *laintiff CCC

'(en *etitioner (ad not 3et %reac(ed its o%ligation to deliver t(e goods and 526 after res*ondent +ade it i+*ossi%le for *etitioner to deliver t(e+ %3 cancelling its order even %efore t(e agreed deliver3 dateQ Sec i!n 3 @+A, R,*e 35 !& -e 3>>2 Re'i#e) R,*e# !n Ci'i* P"!ce),"e *rovides t(at@ Section 1. =rounds M >it(in t(e ti+e for %ut %efore filing t(e ans'er to t(e co+*laint or *leading asserting a clai+& a +otion to dis+iss +a3 %e +ade on an3 of t(e follo'ing grounds@ 777 777 777 5g6 )(at t(e *leading asserting t(e clai+ states no cause of action$ O< CAIS# O- AC)IO<@ A c%,#e !& %c i!n is defined under Sec i!n 9, R,*e 9 of t(e sa+e Rules Sec. 2. Cause of action& defined. M A cause of action is t(e act or o+ission %3 '(ic( a *art3 violates a rig(t of anot(er.RRR -It is the delict or wrongful act or o$ission co$$itted &% the defendant in violation of the pri$ar% right of the plaintiff. -Disposition. >;#R#-OR#& 'e (ere%3 =RA<) t(e *etition. )(e assailed decision of t(e CA dated -e%ruar3 11& 2000 and its resolution dated .une :& 2000 are R#V#RS#D and S#) ASID#. Civil Case *ending %efore t(e R)C of HueBon Cit3& 8ranc( ?0& is (ere%3 DIS!ISS#D.

MISJOINDER UNION /LASS V SEC @H!&i*eN%A 395 SCRA 19 ESCOLIN= N!'eD7e" 9;, 3>;1
NATURE Petition for certiorari and *ro(i%ition seeAing to annul and set aside t(e order of t(e Securities and #7c(ange Co++ission 5S#C6 FACTS Carolina ;ofilePa is a stocA(older of Pioneer =lass !anufacturing Cor*oration& a do+estic cor*oration engaged in t(e o*eration of silica +ines and t(e +anufacture of glass and glass'are. Since 1/9:& Pioneer =lass (ad o%tained various loan acco++odations fro+ t(e Develo*+ent 8anA of t(e P(ili**ines VD8PW& and also fro+ ot(er local and foreign sources '(ic( D8P guaranteed. )(e *roceeds

Civil Procedure Digest

'ere used in t(e construction of a glass *lant in Rosario& Cavite& and t(e o*eration of seven silica +ining clai+s o'ned %3 t(e cor*oration. As securit3& Pioneer =lass +ortgaged andEor assigned its assets to t(e D8P in addition to t(e +ortgages e7ecuted %3 so+e of its cor*orate officers over t(eir *ersonal assets. )(roug( t(e conversion into e1uit3 of t(e accu+ulated un*aid interests on t(e various loans D8P 'as a%le to gain control of t(e outstanding s(ares of co++on stocAs of Pioneer =lass& and to get t(ree regular seats in t(e cor*orationDs %oard of directors. >(en Pioneer =lass suffered serious li1uidit3 *ro%le+s suc( t(at it could no longer +eet its financial o%ligations 'it( D8P& it entered into a dacion en *ago agree+ent 'it( t(e latter& '(ere%3 all its assets +ortgaged to D8P 'ere ceded to t(e latter in full satisfaction of t(e cor*orationDs o%ligations in t(e total a+ount of P5/ +illion. Part of t(e assets transferred to t(e D8P 'as t(e glass *lant in Rosario& Cavite& '(ic( D8P leased and su%se1uentl3 sold to Inion =lass and Container Cor*oration. ;ofilePa filed a co+*laint %efore t(e S#C against t(e D8P& Inion =lass and Pioneer =lass. ;ofilePa *ra3ed t(at t(e dacion en *ago %e declared null and void and t(e assets of t(e Pioneer =lass taAen over %3 D8P *articularl3 t(e glass *lant %e returned. Of t(e five causes of action *leaded& onl3 t(e first cause of action concerned Inion =lass as transferee and *ossessor of t(e glass *lant. Inion =lass +oved for dis+issal of t(e case on t(e ground t(at t(e S#C (ad no 4urisdiction over t(e su%4ect +atter or nature of t(e suit. Res*ondent ;ofilePa filed (er o**osition to said +otion& to '(ic( Inion =lass filed a re4oinder. S#C ;earing Officer #ugenio Re3es granted t(e !)D for lacA of 4urisdiction. ;o'ever& u*on a !-R& (e reversed (is original order. Ina%le to secure a reconsideration of t(e Order as 'ell as to (ave t(e sa+e revie'ed %3 t(e Co++ission #n 8anc& Inion =lass filed t(is *etition in t(e SC. ISSUE 1. >O< t(e S#C (as 4urisdiction over t(e case and not t(e regular courts HELD 1. <O. Ratio In order t(at t(e S#C can taAe cogniBance of a case& t(e controvers3 +ust *ertain to an3 of t(e follo'ing relations(i*s@ VaW %et'een t(e cor*oration& *artners(i* or association and t(e *u%lic$ V%W

A2010 Avena
%et'een t(e cor*oration& *artners(i* or association and its stocA(olders& *artners& +e+%ers& or officers$ VcW %et'een t(e cor*oration& *artners(i* or association and t(e state in so far as its franc(ise& *er+it or license to o*erate is concerned$ and VdW a+ong t(e stocA(olders& *artners or associates t(e+selves. Reasoning >(ile t(e Rules of Court& '(ic( a**lies su**letoril3 to *roceedings %efore t(e S#C& allo's t(e 4oinder of causes of action in one co+*laint& suc( *rocedure (o'ever is su%4ect to t(e rules regarding 4urisdiction& venue and 4oinder of *arties. Since Inion =lass (as no intra cor*orate relations(i* 'it( ;ofilePa& it cannot %e 4oined as *art3 defendant in said case as to do so 'ould violate t(e rule on 4urisdiction. ;ofilePaDs co+*laint against Inion =lass for cancellation of t(e sale of t(e glass *lant s(ould t(erefore %e %roug(t se*aratel3 %efore t(e regular court. Suc( action& if instituted& s(all %e sus*ended to a'ait t(e final outco+e of t(e S#C case& for t(e issue of t(e validit3 of t(e dacion en *ago *osed in t(e S#C case is a *re4udicial 1uestion& t(e resolution of '(ic( is a logical antecedent of t(e issue involved in t(e action against Inion =lass. )(us& ;ofilePaDs co+*laint against t(e latter can onl3 *ros*er if final 4udg+ent is rendered in S#C Case <o. 2005& annulling t(e dacion en Pago e7ecuted in favor of t(e D8P. <O)#@ )(e 4urisdiction of t(e S#C is delineated& %3 Sec 5 of PD /02 A@ S#C. 5. In addition to t(e regulator3 and ad4udicative function of t(e Securities and #7c(ange Co++ission over cor*orations& *artners(i*s and ot(er for+s of associations registered 'it( it as e7*ressl3 granted under e7isting la's and devices& it s(all (ave original and e7clusive 4urisdiction to (ear and decide cases involving@ a6 Devices and sc(e+es e+*lo3ed %3 or an3 acts& of t(e %oard of directors& %usiness associates& its officers or *artners& a+ounting to fraud and +isre*resentation '(ic( +a3 %e detri+ental to t(e interest of t(e *u%lic andEor t(e stocA(olders *artners& +e+%ers of associations or organiBations registered 'it( t(e Co++ission$ %6 Controversies arising out of intra cor*orate or *artners(i* relations& %et'een and a+ong stocA(olders& +e+%ers or associates$ %et'een an3 or all of t(e+ and t(e cor*oration& *artners(i* or association of '(ic( t(e3 are stocA(olders& +e+%ers or associates& res*ectivel3$ and %et'een suc( cor*oration& *artners(i* or association and t(e state

Prof. Victoria A.

1B

insofar as it concerns t(eir individual franc(ise or rig(t to e7ist as suc( entit3$ c6 Controversies in t(e election or a**oint+ents of directors& trustees& officers or +anagers of suc( cor*orations& *artners(i*s or associations. Disposition Petition =RA<)#D. Huestioned orders of S#C& set aside.

PARTIES W-! D%( 7e p%" ie# JUASIN/ HARDWARE V MENDOZA 115 SCRA :?0 =I#RR#RO$ .ul3 00& 1/?2
NATURE S*ecial Civil Action for certiorari FACTS .uasing ;ard'are& alleging to %e a single *ro*rietors(i* dul3 organiBed and e7isting under and %3 virtue of t(e la's of t(e P(ili**ines and re*resented %3 its +anager Ong 8on Cong& filed a co+*laint for t(e collection of a su+ of +one3 against Pilar Dolla. In (er Ans'er& defendant stated t(at s(e ,(as no Ano'ledge a%out *laintiffDs legal *ersonalit3 and ca*acit3 to sue as alleged in t(e co+*laint., After *laintiff (ad co+*leted t(e *resentation of its evidence and rested its case& defendant filed a !otion for Dis+issal of Action 5De+urrer to #vidence6 %ased on *laintiffDs lacA of legal ca*acit3 to sue. Defendant contended t(at .uasing ;ard'are is a single *ro*rietors(i*& not a cor*oration or a *artners(i* dul3 registered in accordance 'it( la'& and t(erefore is not a 4uridical *erson 'it( legal ca*acit3 to %ring an action in court. Plaintiff filed an O**osition and +oved for t(e ad+ission of an A+ended Co+*laint. .udge !endoBa dis+issed t(e case and denied ad+ission of t(e A+ended Co+*laint. !-R 'as liAe'ise denied ISSUES >O< t(e lo'er court co++itted grave a%use of discretion '(en it dis+issed t(e case and refused to ad+it t(e A+ended Co+*laint HELD C#S

Civil Procedure Digest

Ratio A defect in t(e designation of t(e *arties +a3 %e su++aril3 corrected at an! stage of the action *rovided no *re4udice is caused t(ere%3 to t(e adverse *art3. 5Sec. 4& Rule 10& Revised Rules of Court6 Reasoning 0 )(e co+*laint in t(e court %elo' s(ould (ave %een filed in t(e na+e of t(e o'ner of .uasing ;ard'are. )(e allegations in t(e %od3 of t(e co+. *laint 'ould s(o' t(at t(e suit is %roug(t %3 suc( *erson AS *ro*rietor or o'ner of t(e %usiness conducted under t(e na+e and st3le .uasing ;ard'are,. )(e descri*tive 'ords ,doing %usiness as .uasing ;ard'areD , +a3 %e added in t(e title of t(e case& as is custo+aril3 done. Rule 0 of t(e Revised Rules of Court & Sec. 1. >(o +a3 %e *arties. Onl3 natural or 4uridical *ersons or entities aut(oriBed %3 la' +a3 %e *arties in a civil action Petitioner is definitel3 not a natural *erson$ nor is it a 4uridical *erson as defined in t(e <e' Civil Code of t(e P(ili**ines. 4 )(e la' does not vest 4uridical or legal *ersonalit3 u*on t(e sole *ro*rietors(i* nor e+*o'er it to file or defend an action in court. ;o'ever& t(e defect of t(e co+*laint is +erel3 for+al& not su%stantial. Su%stitution of t(e *art3 *laintiff 'ould not constitute a c(ange in t(e Identit3 of t(e *arties. )(e courts s(ould %e li%eral in allo'ing a+end+ents to *leadings to avoid +ulti*licit3 of suits and in order t(at t (e real controversies %et'een t(e *arties are *resented and t(e case decided on t(e +erits 'it(out unnecessar3 dela3. )(is rule a**lies 'it( +ore reason and 'it( greater force '(en t(e a+end+ent soug(t to %e +ade refers to a +ere +atter of for+ and no su%stantial rig(ts are *re4udiced. Dispositive Petition is =RA<)#D.

A2010 Avena
AEUINO Lc!nc,""in+M
It s(ould a**ear in t(e a+ended co+*laint 5a co*3 '(ic( 'as not attac(ed to t(e *etition6 t(at t(e *laintiff is Ong ;ua or ;uat& doing %usiness under t(e tradena+e& .uasing ;ard'are& and in t(e %od3 of t(e co+*laint t(e *ersonal circu+stances of Ong ;ua s(ould %e stated.

Prof. Victoria A.

13

P%" ie# in in e"e# CARILLO, /UYOT, SENOY, RISONAR, /ONZALES V. CA @DABON AND DABONA /R N!. 393354 EUISUMBIN/= Sep eD7e" 95, 9BB5
NATURE Revie' on certiorari of decision of Court of A**eals FACTS =onBales filed co+*laint 5action for s*ecific *erfor+ance6 against !anio s*s& seeAing e7ecution of deed of sale of *ro*ert3 s(e %oug(t fr Priscilla !anio. =onBales said s(e *d do'n*a3+ent to Priscilla %ecause s(e (ad an SPA fro+ (er son Aristotle& t(e o'ner of t(e land. )C ruled in favor of =onBales. =onBales de*osited %alance 'E t(e court and filed +otion for e7ecution& 'Ec 'as 'Edra'n %ec decision 'asn2t served on defendants. S(eriff finall3 served a co*3 at an ungodl3 (our of 12 +n. )C2s decision %eca+e final and e7ecutor3. )(e Da%ons& clai+ing to (ave %oug(t t(e land fr Aristotle& filed %efore t(e CA a *etition for annul+ent of 4udg+ent and orders of t(e )C. )(e3 alleged t(at t(e decision 'as void for lacA of 4urisdiction over t(eir *ersons as t(e real *arties in interest. CA issued resolution restraining )C fro+ i+*le+enting its decision. ;ence& t(is *etition %3 =onBales. ISSUE0S 1. >O< t(ere 'as %asis to annul t(e decision of t(e )C. 2. >O< t(e Da%ons can seeA annul+ent of t(e )C 4udg+ent HELD 1. C#S. Ratio An action s(ould %e %roug(t against t(e real *art3 in interest. )(e real *art3 in interest is t(e one '(o

'ould %e %enefited or in4ured %3 t(e 4udg+ent or is t(e one entitled to t(e avails of t(e suit. Reasoning <a+ed *etitioners (erein are Carillo 5Presiding .udge6& =u3ot 5ClerA of Court6& Seno3 5De*ut3 S(eriff6& Risonar 5Registrar of Deeds6& and =onBales. Carillo& =u3ot& Seno3 and Risonar are not interested *arties %ecause t(e3 'ould not %enefit fro+ t(e affir+ative reliefs soug(t. Onl3 =onBales re+ains as genuine *art3 *etitioner in t(is case. =onBales insists t(at t(e Da%ons (ave no rig(t to seeA annul+ent of t(e )C2s 4udg+ent %ec t(e32re not *arties to t(e s*ecific *erfor+ance case. 8ut t(e Da%ons insist t(at t(e3 are *arties in interest %ec t(e3 are %u3ers& o'ners and *ossessors of t(e contested land. )(e s*ecific *erfor+ance case %roug(t %3 =onBales to t(e )C na+ed Priscilla !anio and (us%and as defendants. ;o'ever& t(e lot is o'ned %3 Aristotle& t(eir son. Priscilla (ad no interest on t(e lot and can (ave no interest in t(e 4udg+ent of t(e )C. -ailure to i+*lead Aristotle !anio renders t(e *roceedings in t(e s*ecific *erfor+ance case null and void. 2. C#S. Ratio A *erson need not %e a *art3 to t(e 4udg+ent soug(t to %e annulled. >(at is essential is t(at (e can *rove t(at t(e 4udg+ent 'as o%tained %3 fraud and (e 'ould %e adversel3 affected t(ere%3. Reasoning Alt(oug( t(e Da%ons are not *arties to t(e s*ecific *erfor+ance case& an3 finding of e7trinsic fraud 'ould adversel3 affect t(eir o'ners(i* and could %e %asis of annul+ent of 4udg+ent. In t(is case& =onBales Ane' of t(e sale of lot %3 Aristotle !anio to t(e Da%ons 3et =onBales did not include t(e Da%ons in (er *etition. )(is is e7trinsic fraud. Disposition Petition is denied.

SEPARATE OPINION

4 Art. 44. )(e follo'ing are 4uridical *ersons@

516 )(e State and its *olitical su%divisions$ 526 Ot(er cor*orations& institutions and entities for *u%lic interest or *ur*ose& created %3 la'$ t(eir *ersonalit3 %egins as soon as t(e3 (ave %een constituted according to la'$ 506 Cor*orations& *artners(i*s and associations for *rivate interest or *ur*ose to '(ic( t(e la' grants a 4uridical *ersonalit3& se*arate and distinct fro+ t(at of eac( s(are(older& *artner or +e+%er.

DEAN JOSE JOYA, CARMEN /UERRERO NAFPIL, ARMIDA SI/UION REYNA, e %*. '. PC//, EOEC. SEC. CATALINO MACARAI/, JR. P PC// CHAIRMAN MATEO A.T. CAPARAS
112 +CR! 234

BELLOSILLO0 A,+,# 9:, 3>>1

NATURE@ S*ecial Civil Action for P"!-i7i i!n and

Civil Procedure Digest

M%n)%D,# 'it( Pra3er for P"e*iDin%"( In.,nc i!n %n)0!" Re# "%inin+ O")e" seeA to en4oin t(e Presidential Co++ission on =ood =overn+ent 5PC==6 fro+ *roceeding 'it( t(e sc(eduled auction sale %3 C(ristie2s 5of <C6 of t(e Old !asters Paintings and 1?t( and 1/t( centur3 silver'are seiBed fro+ !alacaPang and t(e !etro*olitan !useu+ of !anila and *laced in t(e custod3 of t(e Central 8anA. FACTS? Pres. A1uino& t(roug( #7ec. Sec. !acaraig& .r.& aut(oriBed C(air+an Ca*aras to sign t(e Consign+ent Agree+ent allo'ing t(e auction sale of ?2 Old !asters Paintings and anti1ue silver'are seiBed fro+ !alacaPang and t(e !etro*olitan !useu+ of !anila alleged to %e *art of t(e ill gotten 'ealt( of t(e late President !arcos& (is relatives and cronies. According to t(e agree+ent& PC== s(all consign to C;RIS)I#DS for sale at *u%lic auction t(e ?2 Old !asters Paintings t(en found at t(e !etro*olitan !useu+ of !anila as 'ell as t(e silver'are contained in :1 cartons in t(e custod3 of t(e Central 8anA of t(e P(ili**ines& and suc( ot(er *ro*ert3 as +a3 su%se1uentl3 %e identified %3 PC== and acce*ted %3 C;RIS)I#DS to %e su%4ect to t(e *rovisions of t(e agree+ent. PC== t(roug( its ne' C(air+an David !. Castro& 'rote Pres. A1uino defending t(e Consign+ent Agree+ent and refuting t(e allegations of COAudit C(air+an Do+ingo 5t(at t(e aut(orit3 of for+er PC== C(air+an Ca*aras to enter into t(e Consign+ent Agree+ent 'as of dou%tful legalit3$ t(e contract 'as (ig(l3 disadvantageous to t(e govern+ent$ PC== (ad a *oor tracA record in asset dis*osal %3 auction in t(e I.S.$ and& t(e assets su%4ect of auction 'ere (istorical relics and (ad cultural significance& (ence& t(eir dis*osal 'as *ro(i%ited %3 la'. Director of <ational !useu+ =a%riel S. Casal issued a certification t(at t(e ite+s su%4ect of t(e Consign+ent Agree+ent did not fall $ithin the classification of protected cultural properties and did not specificall! ,ualif! as part of the 5ilipino cultural heritage. ;ence& t(is *etition. After t(e oral argu+ents of t(e *arties& t(e a**lication for *reli+inar3 in4unction to restrain t(e sc(eduled sale of t(e art'orAs 'as D#<I#D on t(e ground t(at *etitioners (ad not *resented a clear legal rig(t to a restraining order and t(at *ro*er *arties (ad not %een i+*leaded.

A2010 Avena
)(e sale at *u%lic auction *roceeded as sc(eduled and t(e *roceeds of Z10&002&904.?9 'ere turned over to t(e 8ureau of )reasur3. On +otion of *etitioners& 12 +ore 'ere 4oined as additional *etitioners and Catalino !acaraig& .r.& in (is ca*acit3 as for+er #7ecutive Secretar3& t(e incu+%ent #7ecutive Secretar3& and C(air+an !ateo A.). Ca*aras 'ere i+*leaded as additional res*ondents. ISSUE@ >O< t(e instant *etition co+*lies 'it( t(e legal re1uisites for t(is Court to e7ercise its *o'er of 4udicial revie' over t(is case. HELD@ <O. )(e *aintings and silver'are& '(ic( 'ere taAen fro+ !alacaPang and t(e !etro*olitan !useu+ of !anila and transferred to t(e Central 8anA !useu+ 5t(e o'ners(i* of t(ese *aintings legall3 %elongs to t(e foundation or cor*oration or t(e +e+%ers t(ereof.6 )(e confiscation of t(ese *ro*erties %3 t(e A1uino ad+inistration (o'ever s(ould not %e understood to +ean t(at t(e o'ners(i* of t(ese *aintings (as auto+aticall3 *assed on t(e govern+ent 'it(out co+*l3ing 'it( constitutional and statutor3 re1uire+ents of due *rocess and 4ust co+*ensation. If t(ese *ro*erties 'ere alread3 ac1uired %3 t(e govern+ent& an3 constitutional or statutor3 defect in t(eir ac1uisition and t(eir su%se1uent dis*osition +ust %e raised onl3 %3 t(e *ro*er *arties t(e true o'ners t(ereof '(ose aut(orit3 to recover e+anates fro+ t(eir *ro*rietar3 rig(ts '(ic( are *rotected %3 statutes and t(e Constitution. ;aving failed to s(o' t(at t(e3 are t(e legal o'ners of t(e art'orAs or t(at t(e valued *ieces (ave %eco+e *u%licl3 o'ned& *etitioners do not *ossess an3 clear legal rig(t '(atsoever to 1uestion t(eir alleged unaut(oriBed dis*osition. REASONIN/@ Du+lao v. Co+elec@ )(e rule is settled t(at no 1uestion involving t(e constitutionalit3 or validit3 of a la' or govern+ental act +a3 %e (eard and decided %3 t(e court unless t(ere is co+*liance 'it( t(e legal re1uisites for 4udicial in1uir3& na+el3@ that the ,uestion must e raised ! the proper part!; t(at t(ere +ust %e an actual case or controvers!$ t(at t(e 1uestion +ust %e raised at the earliest possi le opportunit!$ and& t(at t(e decision on t(e constitutional or legal 1uestion must e necessar! to

Prof. Victoria A.

19

t(e deter+ination of t(e case itself. 8ut t(e +ost i+*ortant are t(e first t'o 526 re1uisites. SC@ 'e (ave (eld t(at one (aving no rig(t or interest to *rotect cannot invoAe t(e 4urisdiction of t(e court as *art3 *laintiff in an action. 5Sustiguer v. )a+a3o& =.R. <o. " 2/0416 - )(is is *re+ised on Sec. 2& Rule 0& of t(e Rules of Court& '(ic( *rovides t(at ever3 action +ust %e *rosecuted and defended in t(e na+e of t(e real *art3 in interest& and t(at all *ersons (aving interest in t(e su%4ect of t(e action and in o%taining t(e relief de+anded s(all %e 4oined as *laintiffs. onl3 if t(e case is %roug(t %efore it %3 a *art3 '(o (as t(e legal standing to raise t(e constitutional or legal 1uestion. ILe+%* # %n)in+I +eans a *ersonal and su%stantial interest in t(e case suc( t(at t(e *art3 (as sustained or 'ill sustain direct in4ur3 as a result of t(e govern+ental act t(at is %eing c(allenged. )(e ter+ Iin e"e# I is +aterial interest& an interest in issue and to %e affected %3 t(e decree& as distinguis(ed fro+ +ere interest in t(e 1uestion involved& or a +ere incidental interest 5;ouse International 8uilding )enants Association& Inc. v. Inter+ediate A**ellate Court& =.R. <o. " :52?:6 - !oreover& t(e interest of t(e *art3 *laintiff +ust %e *ersonal and not one %ased on a desire to vindicate t(e constitutional rig(t of so+e t(ird and related *art3. )aPada v. )uvera @ )(ere are certain instances (o'ever '(en t(is Court (as allo'ed e7ce*tions to t(e rule on legal standing& as '(en a citiBen %rings a case for +anda+us to *rocure t(e enforce+ent of a *u%lic dut3 for t(e fulfill+ent of a *u%lic rig(t recogniBed %3 t(e Constitution& and 5Pascual v. Secretar3 of Pu%lic >orAs6 '(en a ta7*a3er 1uestions t(e validit3 of a govern+ental act aut(oriBing t(e dis%urse+ent of *u%lic funds. AS regards !anda+us@ it does not fulfill t(e criteria for a +anda+us suit. -egaspi v. Civil Service Commission@ a 'rit of +anda+us +a3 %e issued to a citiBen onl3 '(en t(e *u%lic rig(t to %e enforced and t(e conco+itant dut3 of t(e state are une1uivoca%l3 set fort( in t(e Constitution. In t(e case at %ar& *etitioners are not after t(e fulfill+ent of a *ositive dut3 re1uired of res*ondent officials under t(e 1/?: Constitution. >(at t(e3 seeA is t(e en4oining of an official act %ecause it is constitutionall3 infir+ed. !oreover& *etitionersD clai+

- )(e Court 'ill e7ercise its *o'er of 4udicial revie'

Civil Procedure Digest

for t(e continued en4o3+ent and a**reciation %3 t(e *u%lic of t(e art'orAs is at +ost a *rivilege and is unenforcea%le as a constitutional rig(t in t(is action for +anda+us. As regards )a7*a3er2s Suit@ <eit(er can t(is *etition %e allo'ed as a ta7*a3erDs suit. <ot ever3 action filed %3 a ta7*a3er can 1ualif3 to c(allenge t(e legalit3 of official acts done %3 t(e govern+ent. - A ta7*a3erDs suit can *ros*er onl3 if t(e govern+ental acts %eing 1uestioned involve dis%urse+ent of *u%lic funds u*on t(e t(eor3 t(at t(e e7*enditure of *u%lic funds %3 an officer of t(e state for t(e *ur*ose of ad+inistering an unconstitutional act constitutes a +isa**lication of suc( funds& '(ic( +a3 %e en4oined at t(e re1uest of a ta7*a3er. - O%viousl3& *etitioners are not c(allenging an3 e7*enditure involving *u%lic funds %ut t(e dis*osition of '(at t(e3 allege to %e *u%lic *ro*erties. It is 'ort(3 to note t(at *etitioners ad+it t(at t(e *aintings and anti1ue silver'are 'ere ac1uired fro+ *rivate sources and not 'it( *u%lic +one3.

A2010 Avena
<atural Resources 5D#<R6. ;is su%stitution in t(is *etition %3 t(e ne' Secretar3& t(e ;onora%le Angel C. Alcala& 'as su%se1uentl3 ordered u*on *ro*er +otion %3 t(e *etitioners. )(e co+*laint 'as instituted as a ta7*a3ersD class suit and alleges t(at t(e *laintiffs ,are all citiBens of t(e Re*u%lic of t(e P(ili**ines& ta7*a3ers& and entitled to t(e full %enefit& use and en4o3+ent of t(e natural resource treasure t(at is t(e countr3Ds virgin tro*ical rainforests., )(e sa+e 'as filed for t(e+selves and ot(ers '(o are e1uall3 concerned a%out t(e *reservation of said resource %ut are ,so nu+erous t(at it is i+*ractica%le to %ring t(e+ all %efore t(e Court., )(e +inors furt(er asseverate t(at t(e3 ,re*resent t(eir generation as 'ell as generations 3et un%orn., Conse1uentl3& it is *ra3ed for t(at 4udg+ent %e rendered@ ,. . . ordering defendant& (is agents& re*resentatives and ot(er *ersons acting in (is %e(alf to G 516 Cancel all e7isting ti+%er license agree+ents in t(e countr3$ 526 Cease and desist fro+ receiving& acce*ting& *rocessing& rene'ing or a**roving ne' ti+%er license agree+ents., and granting t(e *laintiffs ,. . . suc( ot(er reliefs 4ust and e1uita%le under t(e *re+ises., -)(e original defendant& Secretar3 -actoran& .r.& filed a !otion to Dis+iss t(e co+*laint %ased on t'o 526 grounds& na+el3@ 516 t(e *laintiffs (ave no cause of action against (i+ and 526 t(e issue raised %3 t(e *laintiffs is a *olitical 1uestion '(ic( *ro*erl3 *ertains to t(e legislative or e7ecutive %ranc(es of =overn+ent. In t(eir O**osition to t(e !otion& t(e *etitioners +aintain t(at 516 t(e co+*laint s(o's a clear and un+istaAa%le cause of action& 526 t(e +otion is dilator3 and 506 t(e action *resents a 4usticia%le 1uestion as it involves t(e defendantDs a%use of discretion. Su%se1uentl3& res*ondent .udge issued an order granting t(e afore+entioned +otion to dis+iss. In t(e said order& not onl3 'as t(e defendantDs clai+ G t(at t(e co+*laint states no cause of action against (i+ and t(at it raises a *olitical 1uestion G sustained& t(e res*ondent .udge furt(er ruled t(at t(e granting of t(e reliefs *ra3ed for 'ould result in t(e i+*air+ent of contracts '(ic( is *ro(i%ited %3 t(e funda+ental la' of t(e land. Plaintiffs t(us filed t(e instant s*ecial civil action for certiorari under Rule 95 of t(e Revised Rules of Court and asA t(is Court to rescind and set aside t(e dis+issal order on t(e ground t(at t(e res*ondent .udge gravel3 a%used (is discretion in dis+issing t(e

Prof. Victoria A.

11

action. Again& t(e *arents of t(e *laintiffs +inors not onl3 re*resent t(eir c(ildren& %ut (ave also 4oined t(e latter in t(is case. ISSUE >O< Civil Case <o. /0 ::: is a class suit HELD C#S. )(e su%4ect +atter of t(e co+*laint is of co++on and general interest not 4ust to several& %ut to all citiBens of t(e P(ili**ines. Conse1uentl3& since t(e *arties are so nu+erous& it %eco+es i+*ractica%le& if not totall3 i+*ossi%le& to %ring all of t(e+ %efore t(e court. >e liAe'ise declare t(at t(e *laintiffs t(erein are nu+erous and re*resentative enoug( to ensure t(e full *rotection of all concerned interests. ;ence& all t(e re1uisites for t(e filing of a valid class suit under Section 12& Rule 0 of t(e Revised Rules of Court are *resent %ot( in t(e said civil case and in t(e instant *etition& t(e latter %eing %ut an incident to t(e for+er. )(is case& (o'ever& (as a s*ecial and novel ele+ent. Petitioners +inors assert t(at t(e3 re*resent t(eir generation as 'ell as generations 3et un%orn. >e find no difficult3 in ruling t(at t(e3 can& for t(e+selves& for ot(ers of t(eir generation and for t(e succeeding generations& file a class suit. )(eir *ersonalit3 to sue in %e(alf of t(e succeeding generations can onl3 %e %ased on t(e conce*t of intergenerational res*onsi%ilit3 insofar as t(e rig(t to a %alanced and (ealt(ful ecolog3 is concerned. Suc( a rig(t& as (ereinafter e7*ounded& considers t(e ,r(3t(+ and (ar+on3 of nature., <ature +eans t(e created 'orld in its entiret3. Suc( r(3t(+ and (ar+on3 indis*ensa%l3 include& inter alia& t(e 4udicious dis*osition& utiliBation& +anage+ent& rene'al and conservation of t(e countr3Ds forest& +ineral& land& 'aters& fis(eries& 'ildlife& off s(ore areas and ot(er natural resources to t(e end t(at t(eir e7*loration& develo*+ent and utiliBation %e e1uita%l3 accessi%le to t(e *resent as 'ell as future generations. <eedless to sa3& ever3 generation (as a res*onsi%ilit3 to t(e ne7t to *reserve t(at r(3t(+ and (ar+on3 for t(e full en4o3+ent of a %alanced and (ealt(ful ecolog3. Put a little differentl3& t(e +inorsD assertion of t(eir rig(t to a sound environ+ent constitutes& at t(e sa+e ti+e& t(e *erfor+ance of t(eir o%ligation to ensure t(e *rotection of t(at rig(t for t(e generations to co+e. Dispositive Petition granted. Challenged order set aside.

DISPOSITIVE@ )(e *etition for *ro(i%ition and +anda+us is DISMISSED. OPOSA V FACTORAN 99: SCRA 2>9 DAVIDE JR= JULY 1B, 3>>1
NATURE S*ecial civil action for certiorari of t(e dis+issal order FACTS )(e controvers3 (as its genesis in Civil Case <o. /0 ::: '(ic( 'as filed %efore 8ranc( 99 5!aAati& !etro !anila6 of t(e Regional )rial Court 5R)C6& <ational Ca*ital .udicial Region. )(e *rinci*al *laintiffs t(erein& no' t(e *rinci*al *etitioners& are all +inors dul3 re*resented and 4oined %3 t(eir res*ective *arents. I+*leaded as an additional *laintiff is t(e P(ili**ine #cological <et'orA& Inc. 5P#<I6& a do+estic& non stocA and non *rofit cor*oration organiBed for t(e *ur*ose of& inter alia& engaging in concerted action geared for t(e *rotection of our environ+ent and natural resources. )(e original defendant 'as t(e ;onora%le -ulgencio S. -actoran& .r.& t(en Secretar3 of t(e De*art+ent of #nviron+ent and

Civil Procedure Digest

A2010 Avena
Ratio. Inder t(e *resent *rocedure& aside fro+ t(e reliefs *rovided in t(ese t'o sections 5Secs. 1 N 2& Rule 0?6& t(ere is no ot(er +eans '(ere%3 t(e defeated *art3 +a3 *rocure final and e7ecutor3 4udg+ent to %e set aside 'it( a vie' to t(e rene'al of t(e litigation& unless 5a6 t(e 4udg+ent is void for 'ant of 4urisdiction or for lacA of due *rocess of la'& or 5%6 it (as %een o%tained %3 fraud.D 5I !oranDs Rules of Court 1/50 #d.& *. 9/:& citing Anuran v. A1uino& 0? P(il. 2/$ 8anco #s*aPol -ili*ino v. Palanca& 0: P(il. /216. Reason of *u%lic *olic3 '(ic( favors t(e sta%ilit3 of 4udicial decisions are 5sic6 +ute in t(e *resence of fraud '(ic( t(e la' a%(ors 5=arc(itorena vs. Sotelo& :4 P(il. 256. Reasoning .urisdiction is conferred %3 la'. Its e7ercise +ust strictl3 co+*l3 'it( t(e legal re1uisites$ ot(er'ise& a c(allenge on t(e ground of lacA of 4urisdiction +a3 %e %roug(t u* an3ti+e. Suc( 4urisdiction nor+all3 refers to 4urisdiction over t(e su%4ect. 9. YES. Ratio Co o'ners in an action for t(e securit3 of tenure of a tenant are enco+*assed 'it(in t(e definition of indis*ensa%le *arties$ t(us& all of t(e+ +ust %e i+*leaded. Reasoning As (eld %3 t(e Su*re+e Court& 'ere t(e courts to *er+it an action in e4ect+ent to %e +aintained %3 a *erson (aving +erel3 an undivided interest in an3 given tract of land& a 4udg+ent in favor of t(e defendants 'ould not %e conclusive as against t(e ot(er co o'ners not *arties to t(e suit& and t(us t(e defendant in *ossession of t(e *ro*ert3 +ig(t %e (arassed %3 as +an3 succeeding actions of e4ect+ent& as t(ere +ig(t %e co o'ners of t(e title asserted against (i+. )(e *ur*ose of t(is *rovision 'as to *revent +ulti*licit3 of suits %3 re1uiring t(e *erson asserting a rig(t against t(e defendant to include 'it( (i+& eit(er as co *laintiffs or as co defendants& all *ersons standing in t(e sa+e *osition& so t(at t(e '(ole +atter in dis*ute +a3 %e deter+ined once and for all in one litigation. Disposition P#)I)IO< =RA<)#D.

Prof. Victoria A.

1:

FINDS OF PARTIES C!Dp,*#!"( .!in)e" !& in)i#pen#%7*e p%" ie# ARCELONA V. CA @FARNACIOA /.R. N!. 3B9>BB PAN/ANIBAN= Oc . 9, 3>>2
NATURE Petition for revie' FACTS Olanda3& et al. 5*etitioners6 are co o'ners *ro indiviso of a fis(*ond '(ic( t(e3 in(erited fro+ t(eir deceased *arents. A contract of lease over t(e fis(*ond 'as e7ecuted %et'een Ci*riano )andoc and Olanda3& et al. Private Res*ondent !oises -arnacio 'as a**ointed in turn %3 )andoc as caretaAer tenant of t(e sa+e fis(*ond. After t(e ter+ination of t(e lease contract& t(e lessee 5)andoc6 surrendered *ossession of t(e leased *re+ises to t(e lessors& Olanda3& et al. )(ree da3s t(ereafter& -arnacio instituted Civil Case for ,*eaceful *ossession& +aintenance of securit3 of tenure *lus da+ages& 'it( +otion for t(e issuance of an interlocutor3 order, against Olanda3& et al.& %efore Res*ondent Regional )rial Court. )(e case 'as intended to +aintain *rivate res*ondent as tenant of t(e fis(*ond. R)C ruled in favor of -arnacio IAC affir+ed 'it( slig(t +odification SC sustained IAC Petitioners filed 'it( CA a *etition for annul+ent of t(e aforesaid 4udg+ent. CA said to i+*lead R)C Dissatisfied& *etitioners lodged t(is *etition for revie' ISSUES 1. >O< a final 4udg+ent +a3 %e annulled on t(e ground of lacA of 4urisdiction 5over t(e su%4ect +atter andEor over t(e *erson of indis*ensa%le *arties6 and denial of due *rocess& aside fro+ e7trinsic fraudQ 2. >O< all t(e co o'ners *ro indiviso of a real *ro*ert3 indis*ensa%le *artiesQ HELD 3. YES.

FACTS Countr3 8us "ines *assenger %us 'it( *late nu+%er <CA 241 collided 'it( a tric3cle. tric3cle driver )uaBon filed a co+*laint for da+ages against !rs. CereBo& as o'ner of t(e %us line& (er (us%and Attorne3 .uan CereBo 5,Att3. CereBo,6& and %us driver Danilo A. -oronda 5,-oronda,6. !rs. CereBo asserts t(at t(e trial court could not validl3 render 4udg+ent since it failed to ac1uire 4urisdiction over -oronda& an indis*ensa%le *art3. !rs. CereBo *oints out t(at t(ere 'as no service of su++ons on -oronda. ISSUE 1. >O< -ronda is an indis*ensa%le *art3 HELD 3.NO. Ratio CO.P56+OR7 JOI-D,R OF I-DI+P,-+!86, P!RTI,+. An indis*ensa%le *art3 is one '(ose interest is affected %3 t(e court2s action in t(e litigation& and 'it(out '(o+ no final resolution of t(e case is *ossi%le Reasoning !rs. CereBo2s lia%ilit3 as an e+*lo3er in an action for a 1uasi delict is not onl3 solidar3& it is also *ri+ar3 and direct. -oronda is not an indis*ensa%le *art3 to t(e final resolution of )uaBon2s action for da+ages against !rs. CereBo. )(e res*onsi%ilit3 of t'o or +ore *ersons '(o are lia%le for a 1uasi delict is solidar3. >(ere t(ere is a solidar3 o%ligation on t(e *art of de%tors& as in t(is case& eac( de%tor is lia%le for t(e entire o%ligation. ;ence& eac( de%tor is lia%le to *a3 for t(e entire o%ligation in full. )(ere is no +erger or renunciation of rig(ts& %ut onl3 +utual re*resentation. >(ere t(e o%ligation of t(e *arties is solidar3& eit(er of t(e *arties is indis*ensa%le& and t(e ot(er is not even a necessar3 *art3 %ecause co+*lete relief is availa%le fro+ eit(er. )(erefore& 4urisdiction over -oronda is not even necessar3 as )uaBon +a3 collect da+ages fro+ !rs. CereBo alone. Di#p!#i i!n P#)I)IO< D#<I#D.

CEREZO V. TUAZON /.R. N!. 3:341; CARPIO= M%"c- 91, 9BB:

NATURE Petition for revie' on certiorari

Pe"Di##i'e J!in)e" FLORES V MALLARE-PHILLIPS 3:: SCRA 122

Civil Procedure Digest

FERIA= Sep eD7e" 9:,3>;5
NATURE A**eal %3 certiorari fro+ t(e order of t(e R)C of 8aguio FACTS Petitioner Re+edio -lores filed a co+*laint 'it( t(e R)C of 8aguio@ (is first cause of action 'as against res*ondent Ignacio 8inongcal for refusing to *a3 t(e a+ount of P11&940.00 re*resenting cost of trucA tires '(ic( (e *urc(ased on credit fro+ *etitioner on various occasions fro+ August to Octo%er& 1/?1$ and t(e second cause of action 'as against res*ondent -ernando Calion for allegedl3 refusing to *a3 t(e a+ount of P10&212.00 re*resenting cost of trucA tires '(ic( (e *urc(ased on credit fro+ *etitioner on several occasions fro+ !arc(& 1/?1 to .anuar3& 1/?2. On Dece+%er 15& 1/?0& counsel for res*ondent 8inongcal filed a !otion to Dis+iss on t(e ground of lacA of 4urisdiction since t(e a+ount of t(e de+and against said res*ondent 'as onl3 P11&940.00& and under Section 1/5?6 of 8P12/ t(e regional trial court s(all e7ercise e7clusive original 4urisdiction if t(e a+ount of t(e de+and is +ore t(an t'ent3 t(ousand *esos 5P20&000.006. It 'as furt(er averred in said +otion t(at alt(oug( anot(er *erson& -ernando Calion& 'as allegedl3 inde%ted to *etitioner in t(e a+ount of P10&212.00& (is o%ligation 'as se*arate and distinct fro+ t(at of t(e ot(er res*ondent. At t(e (earing of said !otion to Dis+iss& counsel for res*ondent Calion 4oined in +oving for t(e dis+issal of t(e co+*laint on t(e ground of lacA of 4urisdiction. R)C dis+issed t(e co+*laint for lacA of 4urisdiction. Petitioner a**ealed %3 certiorari to t(e SC ISSUE >O< t(e a**lication of t(e totalit3 rule in Sec 00516 5 of 8P 12/ and Section 119 of t(e interi+ rules is
5
Provided&)(at '(ere t(ere are several clai+s or causes of action %et'een t(e sa+e or different *arties& e+%odied in t(e sa+e co+*laint& t(e a+ount of t(e de+and s(all %e t(e totalit3 of t(e clai+s in all t(e causes of action& irres*ective of '(et(er t(e causes of action arose out of t(e sa+e or different transactions. ...

A2010 Avena
su%4ect to *er+issive 4oinder of *arties under Sec 9: of Rule 0 HELD Petitioner +aintains t(at t(e R)C (as 4urisdiction over t(e case follo'ing t(e ,novel, totalit3 rule introduced in Section 005l6 of 8P12/ and Section 11 of t(e Interi+ Rules. Petitioner co+*ares t(e a%ove 1uoted *rovisions 'it( t(e for+er rule under Section ?? of t(e .udiciar3 Act of 1/4? as a+ended '(ic( reads as follo's@ >(ere t(ere are several clai+s or causes of action %et'een t(e sa+e *arties e+%odied in t(e sa+e co+*laint& t(e a+ount of t(e de+and s(all %e t(e totalit3 of t(e de+and in all t(e causes of action& irres*ective of '(et(er t(e causes of action arose out of t(e sa+e or different transactions$ %ut '(ere t(e clai+s or causes of action 4oined in a single co+*laint are se*aratel3 o'ned %3 or due to different *arties& eac( se*arate clai+ s(all furnis( t(e 4urisdictional test& and argues t(at 'it( t(e deletion of t(e *roviso in t(e for+er rule& t(e totalit3 rule 'as reduced to clarit3 and %revit3 and t(e 4urisdictional test is t(e totalit3 of t(e clai+s in all& not in eac(& of t(e causes of action& irres*ective of '(et(er t(e causes of action arose out of t(e sa+e or different transactions. )(is argu+ent is *artl3 correct. )(ere is no difference %et'een t(e for+er and *resent rules in cases '(ere a *laintiff sues a defendant on t'o or +ore se*arate causes of action. In suc( cases& t(e a+ount of t(e de+and s(all %e t(e totalit3 of t(e clai+s in all t(e causes of action irres*ective of '(et(er t(e causes of action arose out of t(e sa+e or different transactions. )(ere is a difference %et'een t(e for+er and *resent rules in cases '(ere t'o or +ore *laintiffs (aving se*arate causes of action against a defendant 4oined in a single co+*laint. Inder t(e for+er rule& ,'(ere t(e clai+s or causes
civil action& t(e a+ount t(ereof +ust %e s*ecificall3 alleged.

Prof. Victoria A.

14

of action 4oined in a single co+*laint are se*aratel3 o'ned %3 or due to different *arties& eac( se*arate clai+ s(all furnis( t(e 4urisdictional test.L As 'orded& t(e for+er rule a**lied onl3 to cases of *er+issive 4oinder of *arties *laintiff. ;o'ever& it 'as also a**lica%le to cases of *er+issive 4oinder of *arties defendant. Inder t(e *resent la'& -e ! %*i ( ",*e i# %pp*ie) %*#! ! c%#e# K-e"e K! !" D!"e p*%in i&&# -%'in+ #ep%"% e c%,#e# !& %c i!n %+%in# % )e&en)%n .!in in % #in+*e c!Dp*%in , %# Ke** %# ! c%#e# K-e"e % p*%in i&& -%# #ep%"% e c%,#e# !& %c i!n %+%in# K! !" D!"e )e&en)%n # .!ine) in % #in+*e c!Dp*%in . 9owever( the causes of action in favor of the two or $ore plaintiffs or against the two or $ore defendants should arise out of the sa$e transaction or series of transactions and there should &e a co$$on *uestion of law or fact( as provided in +ection 3 of Rule :. In other words( in cases of per$issive joinder of parties( whether as plaintiffs or as defendants( under +ection 3 of Rule :( the total of all the clai$s shall now furnish the jurisdictional test. <eedless to state also& if instead of 4oining or %eing 4oined in one co+*laint se*arate actions are filed %3 or against t(e *arties& t(e a+ount de+anded in eac( co+*laint s(all furnis( t(e 4urisdictional test. In the case at &ar( the lower court correctl% held that the jurisdictional test is su&ject to the rules on joinder of parties pursuant to +ection 2 of Rule 1 and +ection 3 of Rule : of the Rules of Court and that( after a careful scrutin% of the co$plaint( it appears that there is a $isjoinder of parties for the reason that the clai$s against respondents 8inongcal and Calion are separate and distinct and neither of which falls within its jurisdiction. Disposition )(e order a**ealed fro+ is affir+ed.

C*%## #,i NEWSWEEF V IAC @NFSPI e . %*.A 142 SCRA 1:1 -#RIA$ !a3 00& 1/?9
NATURE S*ecial action for certiorari& *ro(i%ition 'it( *reli+inar3 in4unction

A**lication of t(e totalit3 rule. In actions '(ere t(e 4urisdiction of t(e court is de*endent on t(e a+ount involved& t(e test of 4urisdiction s(all %e t(e aggregate su+ of all t(e +one3 de+ands& e7clusive onl3 of interest and costs& irres*ective of '(et(er or not t(e se*arate clai+s are o'ned %3 or due to different *arties. If an3 de+and is for da+ages in a

Per+issive 4oinder of *arties. All *ersons in '(o+ or against '(o+ an3 rig(t to relief in res*ect to or arising out of t(e sa+e transaction or series of transactions is alleged to e7ist& '(et(er 4ointl3& severall3& or in t(e alternative& +a3& e7ce*t as ot(er'ise *rovided in t(ese rules& 4oin as *laintiffs or %e 4oined as defendants in one co+*laint& '(ere an3 1uestion of la' or fact co++on to all suc( *laintiffs or to all suc( defendants +a3 arise in t(e action$ %ut t(e court +a3 +aAe suc( orders as +a3 %e 4ust to *revent an3 *laintiff or defendant fro+ %eing e+%arrassed or *ut to e7*ense in aconnection 'it( an3 *roceedings in '(ic( (e +a3 (ave no interest.

Civil Procedure Digest

A2010 Avena
ISSUE 1. >O< res*ondents failed to state a cause of action 2. >O< t(is case is a class suit HELD 1. C#S Ratio Defa+ator3 +atter '(ic( does not reveal t(e Identit3 of t(e *erson u*on '(o+ t(e i+*utation is cast& affords no ground of action unless it %e s(o'n t(at t(e readers of t(e li%el could (ave identified t(e *ersonalit3 of t(e individual defa+ed. It is evident t(at t(e larger t(e collectivit3& t(e +ore difficult it is for t(e individual +e+%er to *rove t(at t(e defa+ator3 re+arAs a**l3 to (i+. 2. <O Ratio It is not a case '(ere one or +ore +a3 sue for t(e %enefit of all 5!at(a3 vs. Consolidated 8anA and )rust Co.6 or '(ere t(e re*resentation of class interest affected %3 t(e 4udg+ent or decree is indis*ensa%le to +aAe eac( +e+%er of t(e class an actual *art3 58orlaBa vs. Polistico6. 6e have here a case $here each of the plaintiffs has a separate and distinct reputation in the communit!. )(e3 do not (ave a co++on or general interest in t(e su%4ect +atter of t(e controvers3. CLASS SUIT - >(ere t(e defa+ation is alleged to (ave %een directed at a grou* or class& it is essential t(at t(e state+ent +ust %e #! #Keepin+ !" %**-eD7"%cin+ %# ! %pp*( ! e'e"( in)i'i),%* in -% +"!,p !" c*%##& or #,&&icien *( #peci&ic so t(at eac( individual in t(e class or grou* can *rove t(at t(e defa+ator3 state+ent s*ecificall3 *ointed to (i+& so t(at (e can %ring t(e action se*aratel3& if need %e. Disposition )(e decision of t(e Inter+ediate A**ellate Court is reversed and t(e co+*laint in Civil Case <o. 15?12 of t(e C-I <egros Occidental is dis+issed& 'it(out *ronounce+ent as to costs.

Prof. Victoria A.

15

FACTS Petitioner& <#>S>##T& Inc. seeAs to annul t(e decision of t(e IAC sustaining t(e Order of t(e C-I 8acolod Cit3. C-I denied <e's'eeA2s !otion to Dis+iss co+*laint for li%el. 5Huestion as to '(et(er t(e *rinted article sued u*on its actiona%le or not is a +atter of evidence.6 4nitial complaint( Private res*ondents& incor*orated associations of sugarcane *lanters in <egros Occidental clai+ing to (ave ?&500 +e+%ers and several individual sugar *lanters& filed in -ei" !Kn 7e-%*& %n)0!" %# % c*%## #,i in 7e-%*& !& %** #,+%"c%ne p*%n e"# in -e p"!'ince !& Ne+"!# Occi)en %*& against *etitioner and t'o of *etitionersD non resident corres*ondentsEre*orters -red 8runing and 8arr3 Ca+e. It 'as alleged t(at t(e3 co++itted li%el %3 t(e *u%lication of t(e article IAn I#*%n) !& Fe%"I in t(e -e% 20& 1/?1 issue of *etitionerDs 'eeAl3 ne's +agaBine ?e$s$ee'. It su**osedl3 *ortra3ed t(eir island as a *lace do+inated %3 %ig lando'ners '(o not onl3 e7*loited t(e i+*overis(ed and under*aid sugarcane 'orAers& %ut also %rutaliBed and Ailled t(e+. Co+*lainants t(erein alleged t(at #%i) %" ic*e, %8en %# % K-!*e, #-!Ke) % )e*i7e"% e %n) D%*ici!,# ,#e !& &%*#e-!!), #*%n e) p"e#en % i!n %n)0!" Di#"ep"e#en % i!n !& &%c #. )(e3 *ra3ed t(at defendants %e ordered to *a3 t(e+ Pl! as actual and co+*ensator3 da+ages& and suc( a+ounts for +oral& e7e+*lar3 and corrective da+ages as t(e court +a3 deter+ine. <#>S>##T filed a +otion to dis+iss on t(e grounds t(at 516 t(e *rinted article sued u*on is not actiona%le in fact and in la'$ and 526 t(e co+*laint is %ereft of allegations t(at state& +uc( less su**ort a cause of action. It *ointed out t(e non li%elous nature of t(e article and& conse1uentl3& t(e failure of t(e co+*laint to state a cause of action. <O CAIS# O- AC)IO< %ecause no allegation t(at an3t(ing contained in t(e article regarding sugarcane *lanters referred s*ecificall3 to an3 one of t(e *rivate res*ondents$ t(at li%el can %e co++itted onl3 against individual re*utation$ and t(at in cases '(ere li%el is clai+ed to (ave %een directed at a grou*& t(ere is actiona%le defa+ation onl3 if t(e li%el can %e said to reac( %e3ond t(e +ere collectivit3 to do da+age to a s*ecific& individual grou* +e+%erDs re*utation.

Petition for Revie' on Certiorari filed %3 t(e !IAA assailing t(e Decision of t(e CA '(ic( directed t(e issuance of a 'rit of *reli+inar3 in4unction restraining *etitioner fro+ evicting t(e (o+eo'ners of Rivera Village fro+ t(eir d'ellings. FACTS )(e t(en Civil Aeronautics Ad+inistration 5CAA6 'as entrusted 'it( t(e ad+inistration& o*eration& +anage+ent& control& +aintenance and develo*+ent of t(e !anila International Air*ort 5!IA6& no' t(e <AIA. )(e CAA entered into individual lease contracts 'it( its e+*lo3ees for t(e lease of *ortions of a 4 (ectare lot situated in Rivera Village& 8aranga3 1// and 200 in Pasa3 Cit3. )(e leases 'ere for a 25 3ear *eriod to co++ence on !a3 25& 1/95 u* to !a3 24& 1//0 at P20 *er annu+ as rental. )(ereafter& #O ::? 'as issued 5later a+ended %3 #O /006& creating !IAA& transferring e7isting assets of t(e !IA to !IAA& and vesting t(e latter 'it( t(e *o'er to ad+inister and o*erate t(e !IA. !IAA sto**ed issuing accrued rental %ills and refused to acce*t rental *a3+ents fro+ t(e lessees. As a result& res*ondent (o+eo'ners association& *ur*ortedl3 re*resenting t(e lessees& re1uested !IAA to sell t(e su%4ect *ro*ert3 to its +e+%ers& invoAing t(e *rovisions of PD 151: or t(e Ir%an "and Refor+ Act and PD 2019. )(e !IAA denied t(e re1uest& clai+ing t(at t(e su%4ect *ro*ert3 is included in its Conce*tual Develo*+ent Plan intended for air*ort related activities. Res*ondent filed a *etition for +anda+us and *ro(i%ition 'it( *ra3er for t(e issuance of a *reli+inar3 in4unction against !IAA and t(e <ational ;ousing Aut(orit3 5<;A6 'it( t(e R)C of Pasa3. )(e *etition soug(t to restrain t(e !IAA fro+ i+*le+enting its Conce*tual Develo*+ent Plan insofar as Rivera Village is concerned and to co+*el !IAA to segregate Rivera Village fro+ t(e sco*e of t(e Conce*tual Develo*+ent Plan and t(e <;A to taAe t(e necessar3 ste*s for t(e dis*osition of t(e *ro*ert3 in favor of t(e +e+%ers of t(e (o+eo'ners association. After t(e *reli+inar3& t(e R)C denied t(e *ra3er for t(e issuance of a te+*orar3 restraining order andEor 'rit of *reli+inar3 in4unction and dis+issed t(e *etition for lacA of +erit. )(e trial court (eld& a+ong ot(ers& t(at t(e *etition failed to state a cause of action inas+uc( as res*ondent (o+eo'ners association is not t(e real *art3 in interest& t(e individual +e+%ers of t(e association %eing t(e ones '(o (ave *ossessor3 rig(ts over t(eir res*ective

MANILA INTERNATIONAL AIRPORT AUTHORITY ' RIVERA VILLA/E LESSEE HOMEOWNERS ASSOCIATION,INC. BB SCRA BB Tin+%, Sep eD7e" 1B, 9BB4
NATURE

Civil Procedure Digest

*re+ises. !oreover& t(e lease contracts (ave alread3 e7*ired. I*on a**eal& t(e CA annulled and set aside t(e order of t(e trial court and re+anded t(e case for furt(er *roceedings. A 'rit of *reli+inar3 in4unction 'as issued restraining and *reventing res*ondent !IAA fro+ evicting t(e +e+%ers of Rivera Village Association fro+ t(eir res*ective lots in t(e Rivera Village. )(e CA ruled t(at t(e case can %e construed as a class suit instituted %3 t(e Rivera Village lessees. )(e (o+eo'ners association& considered as t(e re*resentative of t(e lessees& +erel3 instituted t(e suit for t(e %enefit of its +e+%ers. It does not clai+ to (ave an3 rig(t or interest in t(e lots occu*ied %3 t(e lessees& nor seeA t(e registration of t(e titles to t(e land in its na+e. !IAA argues t(at t(e *etition filed %3 t(e (o+eo'ners association 'it( t(e trial court fails to state a cause of action %ecause t(e (o+eo'ners association is not t(e real *art3 in interest in t(e suit. Allegedl3& t(e 8oard Resolution *resented %3 res*ondent s(o's t(at it 'as onl3 t(e %oard of directors of t(e association& as distinguis(ed fro+ t(e +e+%ers t(ereof& '(ic( aut(oriBed res*ondent to act as its re*resentative in t(e suit. ISSUE >O< t(e *etition filed %3 res*ondent 'it( t(e trial court states a cause of action against *etitionerE >O< res*ondent (as *ersonalit3 to sue HELD YES )(e 1//: Rules of Civil Procedure re1uires t(at ever3 action +ust %e *rosecuted or defended in t(e na+e of t(e real *art3 in interest& i.e.& t(e *art3 '(o stands to %e %enefited or in4ured %3 t(e 4udg+ent in t(e suit& or t(e *art3 entitled to t(e avails of t(e suit. A case is dis+issi%le for lacA of *ersonalit3 to sue u*on *roof t(at t(e *laintiff is not t(e real *art3 in interest& (ence grounded on failure to state a cause of action. )(e *etition %efore t(e trial court 'as filed %3 t(e (o+eo'ners association& re*resented %3 its President& Panfilo R. C(iutena& Sr.& u*on aut(orit3 of a 8oard Resolution e+*o'ering t(e latter to file ,All necessar3 action to t(e Court of .ustice and ot(er related acts necessar3 to (ave our ;ousing Pro4ect nu+%er 4 land %e titled to t(e +e+%ers of t(e Association., O%viousl3& t(e *etition cannot %e considered a class suit under Sec. 12& Rule 0 of t(e Rules of Court& t(e

A2010 Avena
re1uisites t(erefor not %eing *resent in t(e case& nota%l3 %ecause t(e *etition does not allege t(e e7istence and *rove t(e re1uisites of a class suit& i.e.& t(at t(e su%4ect +atter of t(e controvers3 is one of co++on or general interest to +an3 *ersons and t(e *arties are so nu+erous t(at it is i+*ractica%le to %ring t(e+ all %efore t(e court& and %ecause it 'as %roug(t onl3 %3 one *art3. In 8oard of O*to+etr3 v. Colet& it 'as (eld t(at courts +ust e7ercise ut+ost caution %efore allo'ing a class suit& '(ic( is t(e e7ce*tion to t(e re1uire+ent of 4oinder of all indis*ensa%le *arties. -or '(ile no difficult3 +a3 arise if t(e decision secured is favora%le to t(e *laintiffs& a 1uandar3 'ould result if t(e decision 'ere ot(er'ise as t(ose '(o 'ere dee+ed i+*leaded %3 t(eir self a**ointed re*resentatives 'ould certainl3 clai+ denial of due *rocess. )(ere is& (o'ever& +erit in t(e a**ellate courts *ronounce+ent t(at t(e *etition s(ould %e construed as a suit %roug(t %3 t(e (o+eo'ners association as t(e re*resentative of t(e +e+%ers t(ereof under Sec. 0& Rule 0 of t(e Rules of Court& '(ic( *rovides@ Sec. 0. Re*resentatives as *arties. >(ere t(e action is allo'ed to %e *rosecuted or defended %3 a re*resentative or so+eone acting in a fiduciar3 ca*acit3& t(e %eneficiar3 s(all %e included in t(e title of t(e case and s(all %e dee+ed to %e t(e real *art3 in interest. A re*resentative +a3 %e a trustee of an e7*ress trust& a guardian& an e7ecutor or ad+inistrator& or a *art3 aut(oriBed %3 la' or t(ese Rules. An agent acting in (is o'n na+e and for t(e %enefit of an undisclosed *rinci*al +a3 sue or %e sued 'it(out 4oining t(e *rinci*al e7ce*t '(en t(e contract involves t(ings %elonging to t(e *rinci*al. 4t is a settled rule that ever! action must e prosecuted or defended in the name of the real part!.in.interest. 6here the action is allo$ed to e prosecuted or defended ! a representative acting in a fiduciar! capacit!# the eneficiar! must e included in the title of the case and shall e deemed to e the real part!.in.interest. +he name of such eneficiaries shall# li'e$ise# e included in the complaint. !oreover& Sec. 4& Rule ? of t(e Rules of Court *rovides t(at facts sho$ing the capacit! of a part! to sue or e sued# or the authorit! of a part! to sue or e sued in a representative capacit! must e averred in the complaint. 4n order to maintain an action in a court of justice# the plaintiff must have an actual legal e%istence# that is# he or she or it must e a person in la$ and possessed of a legal entit! as

Prof. Victoria A.

12

either a natural or an artificial person. +he part! ringing suit has the urden of proving the sufficienc! of the representative character that he claims. 4f a complaint is filed ! one $ho claims to represent a part! as plaintiff ut $ho# in fact# is not authori&ed to do so# such complaint is not deemed filed and the court does not ac,uire jurisdiction over the complaint. 4t must e stressed that an unauthori&ed complaint does not produce an! legal effect. In t(is case& the petition filed $ith the trial court sufficientl! avers that the homeo$ners association# through its President# is suing in a representative capacit! as authori&ed under the @oard Aesolution attached to the petition. Although the names of the individual mem ers of the homeo$ners association $ho are the eneficiaries and real parties.in.interest in the suit $ere not indicated in the title of the petition# this defect can e cured ! the simple e%pedient of re,uiring the association to disclose the names of the principals and to amend the title and averments of the petition accordingl!. Essentiall!# the purpose of the rule that actions should e rought or defended in the name of the real part!.in.interest is to protect against undue and unnecessar! litigation and to ensure that the court $ill have the enefit of having efore it the real adverse parties in the consideration of a case. +his rule# ho$ever# is not to e narro$l! and restrictivel! construed# and its application should e neither dogmatic nor rigid at all times ut vie$ed in consonance $ith e%tant realities and practicalities. As correctl! noted ! the CA# the dismissal of this case ased on the lac' of personalit! to sue of petitioner.association $ill onl! result in the filing of multiple suits ! the individual mem ers of the association. Di#p!#i i!n )(e instant *etition is =RA<)#D. )(e decision of t(e CA is R#V#RS#D and S#) ASID#. )(e civil case in t(e R)C of Pasa3 Cit3 is ordered DIS!ISS#D.

DEL CASTILLO VS. JAYMALIN, ET AL. 339 SCRA 59> MELENCIO-HERRERA, M%"c- 32, 3>;9
NATURE Direct a**eal fro+ t(e decision of t(e C-I '(ic( dis+iss t(e case for Da+ages due to t(e deat( of *laintiff

Civil Procedure Digest

FACTS 1/90@ Deaf +ute !ario del Castillo fell u*on alig(ting t(e %us of t(e res*ondents and died. 1/92@ Action for recover3 of da+ages 'as filed %3 Severo del Castillo& t(e fat(er of t(e victi+& against t(e driver& conductor& and t(e o'ner co+*anies. 1/99@ Severo died. Counsel for !otion for Annul+ent Proceedings after (aving learned t(at *laintiff Severo alread3 died 'it(out resting (is case. Court ordered *laintiff2s counsel to verif3 e7istence of (eirs 'illing to %e su%stituted as *arties *laintiffs. Allegedl3& a FDeed of Assign+entL 'as e7ecuted %3 Severo in favor of (is son in la' >enceslao ;aloc of all (is rig(ts in t(e *roceedings in 1/90 so *laintiff filed a !otion to Ad+it A+ended Co+*laint& su%stituting >enceslao as *art3 *laintiff. A+ended Co+*laint 'as ad+itted %3 t(e court. C-I@ dis+issed original and a+ended co+*laints due to t(e deat( of Severo. >enceslao (ad no *ersonalit3 to continue t(e case& not %eing a (eir of Severo. ISSUE 1. >O< t(e co+*laint s(ould %e dis+issed due to t(e deat( of t(e *laintiff& even if (e (ad alread3 assigned (is rig(ts %efore (e died 2. >O< da+ages s(ould (ave %een a'arded HELD 1. <O Ratio. >(ere an assigna%le rig(t (as %een transferred %efore action %roug(t& t(e *roceeding oug(t to %e instituted in t(e na+e of t(e assignee$ and '(ere an assign+ent is effected *endente lite& it is *ro*er to (ave t(e assignee su%stituted for t(e original *laintiff. If suc( su%stitution s(ould not %e effected and t(e transfer of t(e rig(t of action s(ould not %e %roug(t to t(e attention of t(e court& t(e original *laintiff& if successful in t(e litigation& 'ould (old t(e fruits of t(e action as a sort of trustee for t(e use and %enefit of (is assignee. Reasoning. )(is is not a case '(ere t(e *rovisions of Section 1:& Rule 0 of t(e Rules of Court on ,deat( of a *art3, are a**lica%le. Rat(er& it is a situation '(ere *laintiff& '(ile alive& (ad assigned (is rig(ts to anot(er& in '(ic( case& t(e *ro*er *rocedure 'ould (ave %een for t(e transferee to (ave %een su%stituted for t(e transferor as *laintiff. )(e rig(ts of Severo to clai+ da+ages for (is son 'ere transfera%le. Severo (ad transferred (is rig(ts as *laintiff to >enceslao ;aloc %ut after t(e assign+ent t(e case continued in SeveroDs na+e and t(ere 'as no i++ediate and for+al su%stitution of *art3

A2010 Avena
*laintiff. )(is is %ut a for+alit3& (o'ever& and t(e fact re+ains t(at& after t(e assign+ent& t(e su%stantial *laintiff and real *art3 in interest %eca+e ;aloc& 'it( Severo as a sort of trustee of '(atever fruits t(e litigation 'ould %ring. 2. C#S Reasoning. Articles 1:94 and 2209 of t(e Civil Code. -ailure to e7ercise e7traordinar3 care for t(e safet3 of its *assengers even after %eing a**rised of t(e fact t(at t(e victi+ 'as a deaf +ute. S(ould (ave %een re+anded to CA for deter+ination of a+ount of da+ages %ut due to *endenc3 of case for 10 3ears K *ut an end to controvers3& Court i+*osed P12&000 for deat( of victi+& *lus P2&000 att32s fees Disposition. >;#R#-OR#& t(e 4udg+ent a**ealed fro+ is (ere%3 reversed& and defendants (ere%3 ordered 4ointl3 and severall3& to *a3 >enceslao ;aloc& t(e a+ount of P12&000.00 as da+ages for deat(& 'it(out interest& and P2&000.00 as attorne3Ds fees. <o costs. SO ORD#R#D.

Prof. Victoria A.

1;

/OJO V /OYALA 14 SCRA 442 B%""e)!, J.? Oc . 1B, 3>2B

NATURE A**eal fro+ a decision of t(e C-I of Sorsogon FACTS A**ellee Segundo =o3ala& 'it( (is no' deceased 'ife Antonina sold to =o4o a 2.5 (ectare *arcel of agricultural land for P:50 %3 a FDeed of Pacto de Retro SaleL& t(e re*urc(ase to %e +ade 'it(in one 3ear& as stated in t(e deed. )(e deed also indicates t(at t(e vendee *aid anot(er P100 in addition to t(e *urc(ase *rice. 10 3ears after t(e e7ecution of said docu+ent& =o4o filed a case 'it( t(e C-I against =o3ala %3 'a3 of a *etition for consolidation of o'ners(i* of said land. =o4o alleged t(at t(e *eriod for re*urc(asing (ad e7*ired and o'ners(i* (ad %eco+e consolidated in (i+ and t(at for *ur*oses of recording t(e consolidation in t(e Registr3 of Pro*ert3& it 'as necessar3 t(at a 4udicial order %e issued to t(at effect. =o3ala filed an ans'er to t(e *etition& alleging t(at t(e3 (ad o%tained a cas( loan of P?10 fro+ =o4o *a3a%le 'Ein one 3ear 'Eo interest and t(at to guarantee *a3+ent& =o3ala e7ecuted a +ortgage in favor of t(e *etitioner on t(e *arcel of land in

1uestion. ;ence& alt(oug( t(e deed 'as e7ecuted in t(e for+ of a *acto de retro sale& t(e true intention of t(e *arties 'as for it to %e a +ere +ortgage to secure *a3+ent. =o3ala furt(er clai+ed t(at (e and (is 'ife atte+*ted to *a3 t(e de%t %ut *etitioner refused to receive t(e su+ and cancel t(e +ortgage. 83 'a3 of counterclai+& =o3ala *ra3ed t(at *etitioner receive t(e P?10 and t(at t(e docu+ent of +ortgage %e declared so& and not a *acto de retro sale. ;e furt(er *ra3ed for P1?00 *er annu+ until t(e final ter+ination of t(e case for t(e fruits of said *ro*ert3 and in t(e case t(at t(e instru+ent %e dee+ed a true *acto de retro sale& t(at *etitioner %e ordered to e7ecute a deed of resale in favor of res*ondents in accordance 'it( A1909CC. Counsel for =o3ala filed a +anifestation infor+ing t(e )C t(at t(e na+ed defendant& Antonina& (ad died& *ro+*ting t(e )C to issue an order re1uiring counsel for t(e *laintiff to su%+it an a+ended Co+*laint su%stituting Antonina 'it( one of (er successors in interest as *art3 defendants. =o3ala filed a +otion to dis+iss t(e *etition on t(e ground t(at not'it(standing t(e la*se of 40 da3s after a**ellant2s recei*t of a co*3 of t(e said )C order& said a**ellant failed and neglected to su%+it t(e a+ended co+*laint re1uired of (i+. A**ellant o**osed t(e +otion %ut t(e )C dis+issed t(e co+*laint. A**ellee filed a +otion to declare a**ellant in default in res*ect of said a**ellee2s counterclai+& '(ic( 'as granted %3 t(e )C& '(ic( furt(er re1uired =o3ala to su%+it (is evidence %efore t(e ClerA of Court. )C rendered favora%le 4udg+ent on a**ellee2s counterclai+& declaring t(e Deed of Pacto de Retro Sale an e1uita%le +ortgage and ordering =o4o to receive t(e P?10 and to restore *ossession to t(e defendants and allo'ing t(e+ to redee+ t(e sa+e. A**ellant a**ealed to t(e CA& '(ic( u*on finding t(at t(e said a**eal involves *urel3 1uestions of la'& certified t(e sa+e to t(e SC. ISSUES Parties; Re contractual $one% clai$s < Dis$issal &% clai$ant < Co$pulsor% counterclai$< !nswer; Defenses >O< )C erred in declaring *laintiff in default 'it( res*ect to defendant2s counterclai+ HELD C#S. )(e a**ellant contends t(at t(ere is no occasion for t(e )C to declare (i+ in default in res*ect of a**ellee2s counterclai+ as said

Civil Procedure Digest

counterclai+ falls 'it(in t(e categor3 of co+*ulsor3 counterclai+ '(ic( does not call for an inde*endent ans'er as t(e co+*laint alread3 denies its +aterial allegations. It is no' settled t(at a *laintiff '(o fails or c(ooses not to ans'er a co+*ulsor3 counterclai+ +a3 not %e declared in default& *rinci*all3 %ecause t(e issues raised in t(e counterclai+ are dee+ed auto+aticall3 4oined %3 t(e allegations of t(e co+*laint. >(ile it is true t(at under Sec. 0 of Rule 1:& a co+*laint +a3 %e dis+issed for failure to *rosecute if t(e *laintiff fails to co+*l3 'it( an order of t(e court& said *rovision cannot a**l3 '(en t(e order ignored is a void one& as in t(is case. 5As in Sec 20 of Rule 0& t(e deat( of t(e defendant in a contractual +one3 clai+ does dis+iss suc( action for recover3& %ut 'ill %e allo'ed to continue until final 4udg+ent is entered. -avora%le 4udg+ent o%tained %3 t(e *laintiff s(all %e enforced in t(e +anner *rovided in t(ese Rules for *rosecuting clai+s against t(e estate of a deceased *erson. In 8arra+eda vs 8ar%ara& t(e SC (eld t(at an order to a+end t(e co+*laint& %efore t(e *ro*er su%stitution of *arties as directed %3 Sec. 1:& Rule 0 5Sec. 19& ne' la'6& is void and i+*oses u*on t(e *laintiff no dut3 to co+*l3 t(ere'it( to t(e end t(at an order dis+issing t(e said co+*laint& for suc( non co+*liance& 'ould si+ilarl3 %e void. It 'as furt(er (eld in -erriera vs =onBales t(at t(e continuance of a *roceeding during t(e *endenc3 of '(ic( a *art3 t(ereto dies& 'it(out suc( *art3 (aving %een validl3 su%stituted in accordance 'it( t(e rules& a+ounts to lacA of 4urisdiction. =9,R,FOR,( the decision appealed fro$ is set aside

A2010 Avena
ON CHAN/E OF VENUE? )(e constitution is 1uite e7*licit. )(e Su*re+e Court could order ,a c(ange of venue or *lace of trial to avoid a +iscarriage of 4ustice., Peo*le v. =utierreB& ..8.". Re3es@ ,X)O CO!P#" );# PROS#CI)IO< )O PROC##D )O )RIA" I< A "OCA"I)C >;#R# I)S >I)<#SS#S >I"" <O) 8# A) "I8#R)C )O R#V#A" >;A) );#C T<O> IS )O !AT# A !OCT#RC O- );# .IDICIA" PROC#SS& A<D )O 8#)RAC );# V#RC PIRPOS# -OR >;IC; COIR)S ;AV# 8##< #S)A8"IS;#D., )(e e7ercise %3 t(is ;onora%le Court of its a%ove constitutional *o'er in t(is case 'ill %e a**ro*riate. )(e 'itnesses in t(e case are fearful for t(eir lives. )(e3 are afraid t(e3 'ould %e Ailled on t(eir 'a3 to or fro+ ;i+a+a3lan during an3 of t(e da3s of trial. 8ecause of t(is fear& t(e3 +a3 eit(er refuse to testif3 or testif3 falsel3 to save t(eir lives. t(ere +a3 %e cases '(ere t(e fear& o%4ectivel3 vie'ed& +a3& to so+e individuals& %e less t(an terrif3ing& %ut t(e 1uestion +ust al'a3s %e t(e effect it (as on t(e 'itnesses '(o 'ill testif3. )(e *ri+ordial ai+ and intent of t(e Constitution +ust ever %e Ae*t in +ind. In case of dou%t& it s(ould %e resolved in favor of a c(ange of venue

Prof. Victoria A.

1>

Petitioner )i+e& Inc.& is an A+erican cor*oration 'it( *rinci*al offices at RocAefeller Center& <e' CorA Cit3& <. C.& and is t(e *u%lis(er of ,)i+e,& a 'eeAl3 ne's +agaBine. PROCEDURE Villegas and #nrile filed a !otion for leave to taAe t(e de*ositions ,of !r. Ant(on3 =onBales& )i+e life International,& and ,!r. Cesar 8. #nri1ueB& !uller N P(i**s 5!anila6 "td.,& in connection 'it( t(e activities and o*erations in t(e P(ili**ines of t(e *etitioner. It 'as granted %3 .udge Re3es and (e also issued a 'rit of attac(+ent on t(e real and *ersonal estate of )i+e& Inc. )i+e Inc. filed a +otion to dis+iss t(e co+*laint for lacA of 4urisdiction and i+*ro*er venue& rel3ing u*on t(e *rovisions of Re*u%lic Act 4090 =According to
this la$# C+he criminal and civil action for damages in cases of $ritten defamations. . .$here one of the offended parties is a pu lic officer $hose office is in the Cit! of 2anila at the time of the commission of the offense# the action shall e filed in the Court of 5irst 4nstance of the Cit! of 2anila or of the cit! or province $here the li elous article is printed and first pu lished# and in case such pu lic officer does not hold office in the Cit! of 2anila# the action shall e filed in the Court of 5irst 4nstance of the province or cit! $here he held office at the time of the commission of the offense or $here the li elous article is printed and first pu lished>.

TIME, INC. '#. REYES 1> SCRA 1B1 REYES, J.B.L.= M%( 13, 3>23
NATURE Petition for certiorari and *ro(i%ition& 'it( *reli+inar3 in4unction& to annul certain orders of t(e res*ondent Court of -irst Instance of RiBal& issued and to *ro(i%it t(e said court fro+ furt(er *roceeding 'it( t(e said civil case. FACTS Antonio .. Villegas and .uan Ponce #nrile =2a!or of 2anila and Bndersecretar! of 5inance and concurrentl! Acting Commissioner of Customs# respectivel!# $ith offices in the Cit! of 2anila> filed a civil action in t(e Court of -irst Instance of RiBal seeAing to recover fro+ t(e (erein *etitioner da+ages u*on an alleged li%el arising fro+ a *u%lication of )i+e 5Asia #dition6 +agaBine& in its issue of 1? August 1/9:& of an essa3& entitled ,Corru*tion in Asia,& '(erein t(e defendants allegedl3 i+*ute to *laintiffs t(e co++ission of t(e cri+es of graft and corru*tion and ne*otis+.

VENUE PEOPLE '. MAYOR PABLO SOLA @p%+e ;A FACTS

8odies found in !a3or Sola2s (acienda. Infor+ation filed against !a3or& C(ief of Police and ot(er accused. Accused 'ere granted %ail. >itnesses fear for t(eir lives %ecause t(e trial 'as to %e (eld near t(e to'n '(ere t(e accused 'ere *o'erful. Also& t(e 'itnesses (ad %een receiving t(reats on t(eir lives. Relevance@ C(ange in venue

Res*ondent court deferred t(e deter+ination of t(e +otion to dis+iss until after trial of t(e case on t(e +erits& t(e court (aving considered t(at t(e grounds relied u*on in t(e +otion do not a**ear to %e indu%ita%le. Petitioner +oved for reconsideration of t(e defer+ent$ )(e res*ondent 4udge issued an order re affir+ing t(e *revious order of defer+ent for t(e reason t(at ,t(e rule laid do'n under Re*u%lic Act <o. 4090& a+ending Article 090 of t(e Revised Penal Code& is not a**lica%le to actions against non resident defendants& and %ecause 1uestions involving (arras+ents and inconvenience& as 'ell as disru*tion of *u%lic service do not a**ear indu%ita%le . . ., Petitioner filed t(e instant *etition for certiorari and *ro(i%ition. =Su ject of the petition( +he orders for the ta'ing of the said depositions# for deferring determination of the motion to dismiss# and for re affirming the deferment# and the $rit of attachment are sought to e annulled in the petition.> ISSUES 1. >(et(er or not& under t(e *rovisions of Re*u%lic Act <o. 4090 t(e res*ondent Court of -irst Instance

Civil Procedure Digest

of RiBal (as 4urisdiction to taAe cogniBance of t(e civil suit for da+ages arising fro+ an allegedl3 li%elous *u%lication& considering t(at t(e action 'as instituted %3 *u%lic officers '(ose offices 'ere in t(e Cit3 of !anila at t(e ti+e of t(e *u%lication$ 2. If it (as no 4urisdiction& '(et(er or not its erroneous assu+*tion of 4urisdiction +a3 %e c(allenged %3 a foreign cor*oration %3 'rit of certiorari or *ro(i%ition$ and HELD 1. <o. )(e *ro*er venue is t(e C-I of !anila. Ratio; Inder Article 090 of t(e Revised Penal Code& as a+ended %3 Re*u%lic Act <o. 4090& actions for da+ages %3 *u%lic officials for li%elous *u%lications against t(e+ can onl3 %e filed in t(e courts of first instance of t(e cit3 or *rovince '(ere t(e offended functionar3 (eld office at t(e ti+e of t(e co++ission of t(e offense& in case t(e li%elous article 'as first *rinted or *u%lis(ed outside t(e P(ili**ines. Reasoning; a. =4ntent of the la$> )(e assertion t(at a foreign cor*oration or a non resident defendant is not inconvenienced %3 an out of to'n suit is irrelevant and untena%le& for venue and 4urisdiction are not de*endent u*on convenience or inconvenience to a *art3$ and +oreover& venue 'as fi7ed under Re*u%lic Act <o. 4090& *ursuant to t(e %asic *olic3 of t(e la' t(at is& as *reviousl3 stated& to *rotect t(e interest of t(e *u%lic service '(en t(e offended *art3 is a *u%lic officer& %3 +ini+iBing as +uc( as *ossi%le an3 interference 'it( t(e disc(arge of (is duties. %. =+e%tual and strict interpretation of the la$> )(e rule is t(at '(ere a statute creates a rig(t and *rovides a re+ed3 for its enforce+ent& t(e re+ed3 is e7clusive$ and '(ere it confers 4urisdiction u*on a *articular court& t(at 4urisdiction is liAe'ise e7clusive& unless ot(er'ise *rovided. ;ence& t(e venue *rovisions of Re*u%lic Act <o 4090 s(ould %e dee+ed +andator3 for t(e *art3 %ringing t(e action& unless t(e 1uestion of venue s(ould %e 'aived %3 t(e defendant& '(ic( 'as not t(e case (ere. 2. Ces. Ratio; )(e action of a court in refusing to rule& or deferring its ruling& on a +otion to dis+iss for lacA of 4urisdiction over t(e su%4ect +atter& or for i+*ro*er venue& is in e7cess of 4urisdiction and correcti%le %3 'rit of *ro(i%ition or certiorari sued out in t(e a**ellate Court& even %efore trial on t(e +erits is (ad. Reasoning

A2010 Avena
It 'ould %e useless and futile to go a(ead 'it( t(e *roceedings if t(e court (ad no 4urisdiction. DISPOSITION )(e 'rits a**lied for are granted@ t(e res*ondent Court of -irst Instance of RiBal is declared 'it(out 4urisdiction to taAe cogniBance of its Civil Case <o. 10400$ and its orders issued in connection t(ere'it( are (ere%3 annulled and set aside. Res*ondent court is furt(er co++anded to desist fro+ furt(er *roceedings in Civil Case <o. 10400 aforesaid. )(e 'rit of *reli+inar3 in4unction (eretofore issued %3 t(is Su*re+e Court is +ade *er+anent.

Prof. Victoria A.
reconsideration& %ut t(e a**ellate court denied t(e +otion. ISSUE0S >O< *arties +a3 sti*ulate on t(e venue of an3 litigation %et'een t(e+

:B

PILIPINO TELEPHONE V TECSON BB SCRA BB VITU/J= M%( 2, 9BB:

NATURE S*ecial civil action of certiorari FACTS On various dates in 1//9& Delfino C. )ecson a**lied for si7 596 cellular *(one su%scri*tions 'it( *etitioner Pili*ino )ele*(one Cor*oration 5PI")#"6& '(ic( a**lications 'ere eac( a**roved and covered& %3 si7 +o%iline service agree+ents. On 05 A*ril 2001& res*ondent filed 'it( t(e R)C of Iligan Cit3& "anao Del <orte& a co+*laint against *etitioner for a ,Su+ of !one3 and Da+ages., Petitioner +oved for t(e dis+issal of t(e co+*laint on t(e ground of i+*ro*er venue& citing a co++on *rovision in t(e +o%iline service agree+ents to t(e effect t(at ,Venue of all suits arising fro+ t(is Agree+ent or an3 ot(er suit directl3 or indirectl3 arising fro+ t(e relations(i* %et'een PI")#" and su%scri%er s(all %e in t(e *ro*er courts of !aAati& !etro !anila. Su%scri%er (ere%3 e7*ressl3 'aives an3 ot(er venues., In an order& t(e R)C denied *etitionerDs !)D and re1uired it to file an ans'er 'it(in 15 da3s fro+ recei*t t(ereof. PI")#" filed a !-R& t(roug( registered +ail& of t(e order of t(e trial court. In its su%se1uent order& )C denied t(e !-R. Petitioner filed a *etition for certiorari under Rule 95 of t(e Revised Rules of Civil Procedure %efore t(e CA. CA sa' no +erit in t(e *etition and affir+ed t(e assailed orders of t(e )C. Petitioner +oved for a

HELD YES Ratio Section 4& Rule 4& of t(e Revised Rules of Civil Procedure allo's t(e *arties to agree and sti*ulate in 'riting& %efore t(e filing of an action& on t(e e7clusive venue of an3 litigation %et'een t(e+. Suc( an agree+ent 'ould %e valid and %inding *rovided t(at t(e sti*ulation on t(e c(osen venue is e7clusive in nature or in intent& t(at it is e7*ressed in 'riting %3 t(e *arties t(ereto& and t(at it is entered into %efore t(e filing of t(e suit. Reasoning. )(e *rovision contained in *aragra*( 22 of t(e ,!o%ile Service Agree+ent&, a standard contract +ade out %3 *etitioner PI")#" to its su%scri%ers& a**arentl3 acce*ted and signed %3 res*ondent. )(e added sti*ulation t(at t(e su%scri%er ,e7*ressl3 'aives an3 ot(er venue, s(ould indicate& clearl3 enoug(& t(e intent of t(e *arties to consider t(e venue sti*ulation as %eing *reclusive in c(aracter. )(e a**ellate court& (o'ever& 'ould a**ear to anc(or its decision on t(e t(esis t(at t(e su%scri*tion agree+ent& %eing a +ere contract of ad(esion& does not %ind res*ondent on t(e venue sti*ulation. 8ut suc( an agree+ent is not *er se inefficacious. )(e rule instead is t(at& s(ould t(ere %e a+%iguities in a contract of ad(esion& suc( a+%iguities are to %e construed against t(e *art3 t(at *re*ared it. If& (o'ever& t(e sti*ulations are not o%scure& %ut are clear and leave no dou%t on t(e intention of t(e *arties& t(e literal +eaning of its sti*ulations +ust %e (eld controlling. A contract dul3 e7ecuted is t(e la' %et'een t(e *arties& and t(e3 are o%liged to co+*l3 full3 and not selectivel3 'it( its ter+s. A contract of ad(esion is no e7ce*tion. Disposition >;#R#-OR#& t(e instant *etition is =RA<)#D.

PLEADIN/S In /ene"%*? M%nne" !& D%8in+ %**e+% i!n# in p*e%)in+#

Civil Procedure Digest

Ac i!n%7*e )!c,Den SANTIA/O VS DE LOS SANTOS 53 SCRA 3:5 FERNANDO= N!'eD7e" 99, 3>2:
FACTS Santiago a**lied for registration of a *arcel of land located in San !ateo& RiBal. )(e a**lication is o**osed %3 t(e Director of "ands& Director of -orestr3 and %3 !rs. Pacita V. de los Santos on t(e ground t(at t(e *ro*ert3 a**lied for is *art of t(e *u%lic do+ain. Su%se1uentl3& +otions to dis+iss t(e a**lication 'ere filed %3 t(e o**ositor Pacita V. de los Santos and t(e Director of -orestr3 '(ic( +otions are *rinci*all3 %ased on t(e allegation t(at t(e *ro*ert3 a**lied for is a *ortion of t(e *u%lic do+ain '(ic( 'as leased to !rs. Pacita de los Santos under Pasture "ease Agree+ent <o. 1005. )(e +otion to dis+iss 'as granted %ased on t(e docu+ents attac(ed to t(eir +otion %3 .udge Cecilia !uPoB Pal+a& no' an Associate .ustice of t(is Court& dis+issed t(e suit. In t(is a**eal& Santiago seeAs for t(e decision to %e reversed. ;is ne' counsel& t(e fir+ of "una and !analo& is t(oroug( and co+*re(ensive. ISSUE >O< t(e order of t(e lo'er court s(ould %e reversed. HELD NO. #ven t(e +ost cursor3 reading of t(e order of dis+issal can lead to no ot(er conclusion e7ce*t t(at it s(ould %e affir+ed. <ot'it(standing t(e vigor 'it( '(ic( t(e a**eal is %eing *rosecuted %3 ne' counsel& it cannot suffice for a reversal. )(e infir+it3 of t(e case is incura%le. )(e *leading left no c(oice to t(e t(en .udge !uPoB Pal+a e7ce*t to dis+iss t(e case& '(ic( 'rote@ F... t(e *ortion of t(e said *arcel of land su%4ect of t(is registration '(ic( 'as clai+ed as *art of t(e *u%lic forest (as alread3 %een released %3 t(e ;onora%le Secretar3 of Agriculture and <atural Resources for agricultural *ur*oses as evidenced %3 its order dated August 10& 1/91.L Attac(ed to suc( *leading 'ere t(e docu+ents& '(ic(& in t(e language of t(e t(en .udge Pal+a& ,s(o' t(at t(e land o%4ect of t(is registration *roceeding is *art of t(e *u%lic do+ain. -or+er counsel oug(t to (ave realiBed t(e fatal effect on (is clientDs case of suc( an ad+ission. If it

A2010 Avena
'ere (is intention to de+olis( entirel3 t(e *retension of *laintiff to t(e clai+ t(at (e (ad %een in o*en& *u%lic& uninterru*ted& *eaceful and adverse *ossession in t(e conce*t of o'ner fro+ .ul3 29& 1?/4 u* to t(e *resent& (e could not (ave succeeded an3 %etter. >(at 'as so categoricall3 t(erein set fort( as to suc( *arcel of land %eing a *art of a *u%lic forest& alt(oug( t(ereafter released %3 t(e Secretar3 of Agriculture and <atural Resources for agricultural *ur*oses& is conclusive and %inding. It 'ould clearl3 a**ear t(at Santiago could not in trut( s(o' t(at t(ere 'as suc( an o*en& uninterru*ted& *eaceful and adverse *ossession in t(e conce*t of o'ner It is a fa+iliar doctrine&, according to .ustice ..8.". Re3es in .oeDs Radio N #lectrical Su**l3 v. Alto #lectronics Cor*.& 5 ,t(at an ad+ission +ade in t(e *leadings cannot %e controverted %3 t(e *art3 +aAing suc( ad+ission and are conclusive as to (i+& and t(at all *roofs su%+itted %3 (i+ contrar3 t(ereto or inconsistent t(ere'it(& s(ould %e ignored& '(et(er o%4ection is inter*osed %3 t(e *art3 or not ... ., 9 #ven if t(ere (ad %een a full (earing on t(e case& t(erefore& t(e result 'ould not (ave %een an3 different. )(ere 'as no c(oice t(en for t(e lo'er court e7ce*t to dis+iss t(e co+*laint. )(e *resent counsel of Santiago tries to e7tricate (i+self fro+ a *redica+ent of (is o'n +aAing %3 arguing t(at t(e +otion to dis+iss of Pacita de los Santos is not entitled to recognition as t(ere 'as a general order of default e7ce*t as to t(e 8ureau of "ands and t(e 8ureau of -orestr3& not lifted as to (er and t(at s(e (as no interest to o**ose t(e a**lication alt(oug( ad+ittedl3 t(ere 'as a clai+ on (er *art under a *asture lease agree+ent in (er favor. 8ut in t(e +otion to dis+iss of de los Santos& it 'as alleged t(at t(e son of Santiago& .uanito 'as one ti+e t(e lessee of t(e ti+%er area soug(t to %e registered %3 Santiago. )(ere 'as no denial of suc( allegation. It is 1uite o%vious t(en t(at t(e facts& no less t(an t(e la'& call for *recisel3 t(e conclusion reac(ed %3 t(e t(en .udge !uPoB Pal+a. ,Rules of *leading are intended to secure a +et(od %3 '(ic( t(e issues +a3 %e *ro*erl3 laid %efore t(e court. >(en t(ose issues are alread3 clear %efore t(e court& t(e deficienc3 in t(e o%servance of t(e rules s(ould not %e given undue i+*ortance. >(at is i+*ortant is t(at t(e case %e decided u*on t(e +erits and t(at it s(ould not %e allo'ed to go off on *rocedural *oints. )ec(nicalities& in t(e a**ro*riate language of .ustice !aAalintal& ,s(ould give 'a3 to

Prof. Victoria A.

:3

t(e realities of t(e situation., 10 >ell could .ustice CardoBo o%serve@ ,A s3ste+ of *rocedure is *erverted fro+ its *ro*er function '(en it +ulti*lies i+*edi+ents to 4ustice 'it(out t(e 'arrant of clear necessit3., Dispositive. >;#R#-OR#& t(e a**ealed order of <ove+%er 1:& 1/91 of t(e t(en .udge !uPoB Pal+a is affir+ed. Costs against a**ellant "uis R. Santiago

T-e C*%iD C!,n e"c*%iD0c"!##-c*%iD %& e" %n#Ke" NAMARCO '. FEDERACION :> SCRA 91; ANTONIO= J%n,%"( 13, 3>29
NATURE A**eal %3 defendantfro+ a decision of t(e Court of -irst Instance ordering said defendant to *a3 t(e *laintiff FACTS <A!ARCO is a =OCC organiBed and e7isting under and %3 virtue of RA 1045. -#D#RA)IO< is a non stocA cor*oration dul3 organiBed and e7isting under and %3 virtue of t(e la's of t(e P(ili**ines. )(e3 entered into a Contract of Sale '(ic( sa3s t(at t(e !anage+ent of <A!ARCO 'as aut(oriBed to i+*ort ite+s 'ort( Z2&001&001. -#D#RA)IO< de*osited P200&000 as *artial *a3+ent and t(e %alance s(all %e *aid on cas( %asis u*on deliver3 of t(e dul3 indorsed negotia%le s(i**ing docu+ent covering t(e sa+e and )o insure *a3+ent& t(e <A!ARCO acce*ted t(ree do+estic letters of credit for t(e account of t(e -#D#RA)IO<. )(e -#D#RA)IO< and so+e of its +e+%ers filed a co+*laint against t(e <A!ARCO for s*ecific *erfor+ance and da+ages& alleging t(at after t(e <A!ARCO (ad delivered a great *ortion of t(e goods listed in t(e Contract of Sale& it refused to deliver t(e ot(er goods +entioned in t(e said contract. C-I ordered t(e <A!ARCO to s*ecificall3 *erfor+ its o%ligation in t(e Contract of Sale& %3 delivering to t(e -#D#RA)IO< t(e undelivered goods. SC@ )(e Contract of Sale 'as valid.,

Civil Procedure Digest

<A!ARCO@ -#D#RA)IO<DS act or o+ission in refusing to satisf3 t(e for+erDs valid& 4ust and de+anda%le clai+ (as co+*elled it to file t(e instant action$ and *ra3ing t(at t(e -#D#RA)IO< %e ordered to *a3 t(e <A!ARCO t(e costs of +erc(andise *lus da+ages. -#D#RA)IO< +oved to dis+iss t(e co+*laint on t(e ground t(at t(e cause of action alleged t(erein is %arred forever& *ursuant to section 9 of Rule 10 of t(e Rules of Court. In su**ort t(ereof& t(e -#D#RA)IO< alleged it filed a case for s*ecific *erfor+ance to enforce co+*liance 'it( t(e contract of sale$ t(at said contract is also t(e %asis <A!ARCODs *resent co+*laint$ t(at '(en <A!ARCO filed its ans'er to t(e co+*laint& it did not set u* an3 counterclai+ t(erein$ t(at t(e C-I *ro+ulgated t(e decision in said case ordering& a+ong ot(ers& t(e <A!ARCO to s*ecificall3 *erfor+ its o%ligation under t(e contract of sale %3 delivering to t(e -#D#RA)IO< t(e goods su%4ect +atter of t(e contract as are involved in t(e co+*laint. <A!ARCO o**osed t(e +otion to dis+iss contending t(at its clai+ for t(e recover3 of t(e cost of +erc(andise delivered to t(e -#D#RA)IO< is not necessaril3 connected for s*ecific *erfor+ance and& t(erefore& does not fall under t(e categor3 of co+*ulsor3 counterclai+$ t(at <A!ARCODs failure to set it u* as a counterclai+ in its ans'er does not constitute res 4udicata$ t(at t(e deliveries of t(e +erc(andise 'ere effected t(roug( t(e fault or negligence of one of its *ersonnel& .uan ). Arive& '(o 'as ad+inistrativel3 c(arged t(erefor& found guilt3 and accordingl3 dis+issed.$ t(at t(e *resent clai+ is not necessaril3 connected 'it( t(e transaction or occurrence t(at is t(e su%4ect +atter of Civil Case <o. 429?4& as t(e sa+e evidence 'ould not su**ort or refute %ot(. )(e -#D#RA)IO< filed a re4oinder reiterating t(at t(e re1uire+ents on t(e rule of co+*ulsor3 counterclai+ are *resent$ t(at t(e first re1uire+ent t(at t(e counterclai+ arises out of or is necessaril3 connected 'it( t(e contract of sale su%4ect +atter of <A!ARCODs cause of action is evident fro+ t(e face of t(e co+*laint itself. "C issued an order (olding ,in a%e3ance, action on t(e +otion to dis+iss till after t(e trial on t(e +erits. -#D#RA)IO< filed its ans'er to t(e <A!ARCODs co+*laint ad+itting so+e +aterial aver+ents of t(e co+*laint& s*ecificall3 den3ing ot(er allegations and consistentl3 'it( its *osition averred as affir+ative defense t(at <A!ARCODs failure to assert its clai+ against t(e -#D#RA)IO< %efore 4udg+ent in Civil

A2010 Avena
Case <o. 429?4 on Octo%er 15& 1/90 constituted a %ar to t(e institution of t(e *resent action. 83 'a3 of counterclai+& t(e -#D#RA)IO< soug(t P50&000.00 as attorne3Ds fees and ot(er e7*enses of litigation& as 'ell as P1:&000.00 as da+ages for i+*ro*er issuance of a 'rit of attac(+ent '(ic( 'rit& evidentl3 (ad %een issued earlier %3 t(e court. <A!ARCO filed an ans'er to t(e -#D#RA)IO<DS counterclai+ s*ecificall3 den3ing t(e +aterial aver+ents t(ereof and +aintaining t(at t(e *resent action is not %arred %3 Civil Case <o. 429?4. ISSUE >O< t(is action of <A!ARCO for t(e collection of t(e *a3+ent of t(e +erc(andise delivered to& %ut not 3et *aid %3& t(e -#D#RA)IO<& is alread3 %arred as a conse1uence of t(e failure of <A!ARCO to set it u* as a counterclai+ in t(e *revious case& 5Civil Case <o. 429?46. HELD A counterclai+ (as %een (eld to %e co+*ulsor3 if t(ere is a logical relations(i* %et'een it and t(e +ain clai+. 8ut even assu+ing for t(e nonce t(at <A!ARCODs *resent clai+ is logicall3 related to t(e clai+ of t(e -#D#RA)IO< in t(e *revious case& <A!ARCODs clai+ (aving accrued or +atured after t(e service of its ans'er in t(e earlier case is in t(e nature of an after ac1uired counterclai+ '(ic( under t(e rules is not %arred even if it is not set u* in t(e *revious case as a counterclai+. An after ac1uired counterclai+& is one of t(e recogniBed e7ce*tions to t(e general rule t(at a counterclai+ is co+*ulsor3 and +ust %e asserted if it arises out of t(e sa+e transaction as t(e o**osing *art3Ds clai+. )(e *art3 need not assert a counterclai+ t(at (as not +atured at t(e ti+e (e serves (is *leading. )(is is derived fro+ t(e language in t(e rule li+iting its a**lication to clai+s t(e *leader (as Dat t(e ti+e of serving t(e *leading.D A counterclai+ ac1uired %3 defendant after (e (as ans'ered 'ill not %e considered co+*ulsor3& even if it arises out of t(e sa+e transaction as does *laintiffDs clai+. Si+ilarl3& a counterclai+ ac1uired %3 *laintiff after (e (as re*lied to a counterclai+ %3 defendant is not co+*ulsor3 under Rule 105a6. ;o'ever& if a *art3 s(ould ac1uire a +atured counterclai+ after (e (as *leaded& Rule 105e6 *rovides t(at (e +a3 o%tain t(e courtDs *er+ission to include it in a su**le+ental *leading under Rule 155d6.,

Prof. Victoria A.

:9

A counterclai+ +a3 %e asserted under Rule 105e6 onl3 %3 leave of court& '(ic( usuall3 'ill %e granted in order to ena%le t(e *arties to litigate all t(e clai+s t(at t(e3 (ave against eac( ot(er at one ti+e t(ere%3 avoiding +ulti*le actions. ;o'ever& Rule 10& 5e6 is *er+issive in c(aracter. An after ac1uired counterclai+& even if it arises out of t(e transaction or occurrence t(at is t(e su%4ect +atter of t(e o**osing *art3Ds clai+& need not %e *leaded su**le+entall3$ t(e after ac1uired clai+ is not considered a co+*ulsor3 counterclai+ under Rule 105a6 and a failure to inter*ose it 'ill not %ar its assertion a later suit. )(e counterclai+ +ust %e e7isting at t(e ti+e of filling t(e ans'er& t(oug( not at t(e co++ence+ent of t(e action for under Section 0 of t(e for+er Rule 10& t(e counterclai+ or cross clai+ '(ic( a *art3 +a3 aver in (is ans'er +ust %e one '(ic( (e +a3 (ave ,at t(e ti+e, against t(e *osing *art3. )(at *(rase can onl3 (ave reference to t(e ti+e of t(e ans'er. Certainl3 a *re+ature counterclai+ cannot %e set u* in t(e ans'er. )(is construction is not onl3 e7*licit fro+ t(e language of t(e aforecited *rovisions %ut also serves to (ar+oniBe t(e aforecited sections of Rule 10& 'it( section 4 of t(e sa+e rule '(ic( *rovides t(at ,a counterclai+ . . . '(ic( eit(er +atured or 'as ac1uired %3 a *art3 after serving (is *leading +a3& 'it( t(e *er+ission of t(e court& %e *resented as a counterclai+ . . . %3 su**le+ental *leading %efore 4udg+ent., )(us a *art3 '(o fails to inter*ose a counterclai+ alt(oug( arising out of or is necessaril3 connected 'it( transaction or occurrence of t(e *laintiffDs suit %ut '(ic( did not e7ist or +ature at t(e ti+e said *art3 files (is ans'er is not t(ere%3 %arred fro+ inter*osing suc( clai+ in a future litigation. ;o'ever suc( clai+ +a3 'it( t(e courtDs *er+ission %e included in t(e sa+e case %3 'a3 of su**le+ental *leading %efore 4udg+ent under Section 4 of for+er Rule 10 of t(e Rules 5no' Sec. / Rule 96. And t(e sa+e +a3 %e allo'ed unless t(e case (as *rogressed so far t(at it +a3 %e inconvenient or confusing to allo' t(e additional clai+ to %e *leaded. >e t(erefore rule t(at <A!ARCODs *resent action& is not %arred %3 its failure to assert it as a counterclai+ t(e *revious case. 8ARR#DO& dissenting@ <a+arcoDs *resent clai+ arise out of or 'as necessaril3 connected 'it( t(e transaction or occurrence t(at 'as t(e su%4ect +atter of t(e -ederationDs action in Civil Case <o 429?4 'it(in t(e

Civil Procedure Digest

conte+*lation of t(e rule on co+*ulsor3 counterclai+s. It 'as t(e ele+ent of ti+e (erein involved t(at so+e(o' induced +e at t(e %eginning to %e inclined& al%eit reluctantl3& to sustain <a+arcoDs *osition in t(is a**eal. At t(e *recise ti+e t(at <a+arco filed its ans'er in Civil Case <o. 429?4& it 'as not 3et certain t(at t(e -ederation 'ould not *a3 or t(at *a3+ent of its sig(t drafts 'ould not %e effected %3 t(e %anA. In ot(er 'ords& fro+ t(at *oint of vie'& <a+arcoDs cause of action (ad not 3et +atured t(en. It is also clear& (o'ever& t(at said cause of action accrued %efore 4udg+ent 'as rendered %3 t(e trial court. Inder Section 4 of Rule 10 of t(e old rules& no' Section / of Rule 9& a counterclai+ '(ic( eit(er +atured or 'as ac1uired %3 a defendant after serving (is ans'er +a3 %e set u* in a su**le+ental *leading later %efore 4udg+ent. Since t(is +a3 %e done or not in t(e case of counterclai+s not arising out of t(e sa+e transaction or occurrence& t(e 1uestion t(at arises is& +ust it (ave to %e done in t(e case of counterclai+s t(at do arise fro+ t(e sa+e transaction or occurrence& suc( t(at if not inter*osed& t(e3 +ust %e dee+ed %arredQ I agree t(at t(e Court rule for t(e *resent t(at for a counterclai+ to %e considered as %arred& under t(e a%ove *rovisions& t(e cause of action t(ereof +ust (ave alread3 accrued at t(e ti+e t(e ans'er is filed %3 t(e defendant& alt(oug( I& for one& 'ould *refer su**le+ental counterclai+s& t(e defendant s(ould 4ust t(e sa+e %e co+*elled to allege it in suc( a su**le+ental *leading in t(ose cases '(ere (is clai+ accrues %efore trial (as %egan or at t(e latest& %efore t(e defendant (as started *resenting (is evidence. Ot(er'ise stated& +3 *osition is t(at t(e clai+ of <a+arco in t(is case did arise out of t(e sa+e transaction or occurrence t(at 'as t(e su%4ect +atter of t(e -ederationDs anterior action& %ut inas+uc( as& on t(e (3*ot(esis t(at t(e contract 'ere %inding& t(e for+ersD cause of action could not (ave %een considered as alread3 +atured '(en it filed its ans'er& t(ere 'ould (ave %een no need for it to file t(is counterclai+. )(e '(ole trou%le 'it( <a+arcoDs *ose in t(is a a**eal lies& (o'ever& in t(e fact t(at in its ans'er to t(e -ederationDs co+*laint& it *leaded t(e defense of illegalit3 or nullit3 of t(e contract. -ro+ t(at *oint of vie'& it 'as i++aterial to <a+arcoDs recover3 of t(e *urc(ase *rice of goods it (ad alread3 delivered under t(e contract t(at t(ere 'as in said contract an3 ter+ for t(e *a3+ent t(ereof. As far as <a+arco

A2010 Avena
'as concerned& t(ose goods (ad %een delivered illegall3 and s(ould (ave %een i++ediatel3 returned unless t(eir value (ad %een *aid for& 5Article 1412 526& Civil Code6 or <a+arco 'as in *ari delicto 5Article 1411& id6. Suc( %eing t(e case& it is 1uite evident t(at '(en <a+arco filed its ans'er to t(e -ederationDs action& its cause of action for t(e recover3 of t(e *rice of t(e delivered goods 'as alread3 e7isting and could (ave %een t(e su%4ect of a counterclai+. )(is +eans t(at as of t(e ti+e <a+arco filed its ans'er contesting t(e legalit3 or validit3 of t(e contract& it 'as incu+%ent u*on it to t(en and t(ere seeA recover3 of '(atever it (ad delivered t(ereunder.

Prof. Victoria A.

:1

ADen)e) %n) S,pp*eDen %* p*e%)in+# YOUN/ VS SPOUSES SY /R N!. 3422:4 AUSTRIA- MARTINEZ, Sep eD7e" 95, 9BB5
NATURE Consolidated *etitions for revie' on Certiorari FACTS Petitioner filed a co+*laint for nullification of Second Su**le+ental #7tra 4udicial settle+ent& +ortgage& foreclosure sale& and ta7 declaration against res*ondents on !a3 20& 2000. )(e co+*lained alleged t(at t(e 1uestioned *artition '(ic( 'as e7ecuted %3 (er +ot(er 'as unenforcea%le since at t(e ti+e of t(e e7ecution t(e *etitioner 'as onl3 15 3ears old and t(at no court a**roval 'as secured. ;er +ot(er o%tained a loan fro+ t(e s*ouses res*ondents and used t(e *ro*ert3 as securit3 5+ortgage6. Due to non *a3+ent t(e *ro*ert3 'as foreclosed and sold to res*ondents as (ig(est %idders. )(e deed of sale (as %een filed 'it( t(e Register of Deed and t(e res*ondents o%tained n t(eir na+e a ta7 declaration over t(e *ro*ert3. Petitioner su%se1uentl3 filed 'it( t(e sa+e R)C a !otion to Ad+it Su**le+ental Co+*laint to invoAe (er rig(t to e7ercise legal rede+*tion over t(e *ro*ert3. )(is su**le+ental +otion 'as denied %3 t(e R)C on Dece+%er 2?& 2000. Petitioner filed a Petition for Certiorari and !anda+us under Rule 95 of t(e Rules of Court 'it( t(e CA. )(e CA dis+issed t(e *etition on t(e ground t(at t(e cause of action in t(e Su**le+ental co+*laint is entirel3 different fro+ t(e original co+*laint& t(at t(e said co+*laint did

not +erel3 su**l3 its deficiencies& and t(at& at an3 rate& in t(e event t(e trial court issues an adverse ruling& t(e *etitioner can still t(e sa+e. Petitioner filed t(is Petition for revie' on certiorari under Rule 45 'it( t(e SC. >it( regard t(e original action& t(e R)C dis+issed t(e case u*on +otion of t(e res*ondents on t(e ground of failure to *rosecute. A**arentl3& t(e *etitioner (ad asAed for *ost*one+ents o*ening t(e door for a clai+ %3 t(e res*ondents of non suit. 5)(is is '(ere it %eco+es +ore interesting6 Petitioner filed t'o a**eals 'it( t(e CA. 8ot( a**eals raised essentiall3 t(e sa+e issues. One of t(e a**eals an ordinar3 a**eal and t(e ot(er is a Petition for Certiorari under Rule 95 filed four +ont(s after t(e first. )(e CA ruled in favor of t(e *etitioner under t(e ordinar3 a**eal %ut a +otion for reconsideration 'as filed %3 t(e res*ondents and t(e CA (as 3et to rule on t(is reconsideration +otion. )(e ot(er a**eal 'as dis+issed on t(e ground t(at 4udg+ent of t(e R)C can onl3 %e a**ealed via an ordinar3 a**eal and not %3 certiorari. ;ence t(is *etition for revie' under Rule 45 'it( t(e SC. ISSUE0S 1. >O< t(e denial of t(e !otion to ad+it su**le+ental Co+*laint is valid 2. >O< t(e dis+issal of t(e *etition for certiorari 'it( regard t(e original action is *ro*er HELD 1. <o. As its ver3 na+e denotes& a su**le+ental *leading onl3 serves to %olster or add so+et(ing to t(e *ri+ar3 *leading. A su**le+ent e7ists side %3 side 'it( t(e original. It does not re*lace t(at '(ic( it su**le+ent. !oreover& a su**le+ental *leading assu+es t(at t(e original *leading is to stand and t(at t(e issues 4*ined 'it( t(e original *leading re+ained an issue to %e tried in t(e action. It is %ut a continuation of t(e co+*laint. Its usual office is to set u* ne' facts '(ic( 4ustif3& enlarge or c(ange t(e Aind of relief 'it( res*ect to t(e sa+e su%4ect +atter as t(e controvers3 referred to in t(e original co+*laint. In t(is case& t(e consolidation of t(e title over t(e *ro*ert3 in t(e na+e of t(e res*ondent& !anuel S3& and t(e issue as to '(et(er it *recluded *etitioner as alleged co o'ner fro+ e7ercising t(e rig(t of legal rede+*tion& are ne' +atters t(at occurred after t(e filing of t(e original co+*laint. )(e relief *ra3d for in t(e Su**le+ental co+*laint& '(ic( is t(e e7ercise of t(e rig(t of legal rede+*tion accorded to co o'ners of *ro*ert3& is ger+ane to

Civil Procedure Digest

and intert'ined 'it( t(e cause of action in t(e Co+*laint for t(e nullification. )(e rig(t of legal rede+*tion as co o'ner is conferred %3 la' and is +erel3 a natural conse1uence of co o'ners(i*. ;ence *etitioner2s cause of action for legal rede+*tion as e+%odied in t(e su**le+ental co+*laint ste+s directl3 fro+ and is an e7tension of (er rig(ts as co o'ner of t(e *ro*ert3 su%4ect of t(e co+*laint. Also as *etitioner correctl3 *ointed out& even if t(e trial court decides in (er favor& t(e rede+*tion *eriod 'ould (ave la*sed alread3 and 'ould not for+ *art of t(e decision since it is not *ra3ed for& +uc( less alleged in t(e original co+*laint. In suc( a case& t(e res*ondents could o**ose t(e e7ercise since it 'ould not (ave %een included in t(e decision over t(e original co+*laint. 2. Ces. )(e *etitioner is guilt3 of foru+ s(o**ing. -oru+ s(o**ing consists of filling +ulti*le suits involving t(e sa+e *arties for t(e sa+e cause of action& eit(er si+ultaneousl3 or successivel3& t(e t(e *ur*ose of o%taining a favora%l3 4udg+ent. )(ere is foru+ s(o**ing '(ere t(ere e7ist@ 5a6 identit3 of *arties& or at least suc( *arties as re*resent t(e sa+e interests in %ot( actions$ 5%6 identit3 of rig(ts asserted and relief *ra3ed for& t(e relief %eing founded on t(e sa+e facts$ 5c6 t(e identit3 of t(e t'o *receding *articulars is suc( t(at an3 4udg+ent rendered in t(e *ending case& regardless of '(ic( *art3 is successful 'ould a+ount to res 4udicata. )(e decision of t(e R)C is dis+issing t(e case is a final order and t(e *ro*er re+ed3 against suc( final order is a**eal and not certiorari. As a general rule& a 'rit of certiorari sill not issue '(ere t(e re+ed3 of a**eal is availa%le to t(e aggrieved *art3. )(e re+edies of a**eal in t(e ordinar3 course of la' and t(at of certiorari under Rule 95 are +utuall3 e7clusive and not alternative or cu+ulative. (ence t(e s*ecial civil action of certiorari under Rule 95 cannot %e a su%stitute for an a**eal '(ere t(e latter re+ed3 is availa%le. )(is is a fir+ 4udicial *olic3. Disposition Petition for t(e non suit is denied. Petition for t(e ad+ission of t(e su**le+ental order is granted. )(e trial court is directed to ad+it said co+*laint.

A2010 Avena
CASTRO= Oc !7e" 95, 3>5;
NATURE FACTS Octo%er 20& 1/5/ O Re*u%lic of t(e P(ili**ines filed suit against t(e Central Suret3 N Insurance Co+*an3 and !ango%a& +anager of t(e %ond de*art+ent stating t(at Po Tee Ta+ '(o 'as t(e su%4ect of de*ortation *roceedings in '(o+ t(e %ond 'as +ade in favor of& did not a**ear in suc( *roceedings des*ite notice to t(e Suret3. )(is constituted a violation of t(e conditions of t(e %ond causing t(e forfeiture of t(e %ond +ade %3 t(e Suret3 in favor of t(e govern+ent. Re*u%lic clai+s P5&000 5a+ount of %ond6 and P1&000 5att32s fees6 .ul3 5& 1/90 O Suret3 filed its ans'er@ 516 t(at its %ond cannot %e +ade lia%le %e3ond t(e a+ount of P5&000$ 526 t(at it is not lia%le for attorne3Ds fees in t(e a%sence of an3 sti*ulation to t(at effect$ 506 t(at t(e court (as no 4urisdiction over t(e case as t(e a+ount involved is onl3 P5&000$ and 546 t(at t(e Re*u%lic (as no cause of action. .ul3 00& 1/90 O Suret3 filed a t(ird *art3 co+*laint& 'it( leave of court& against Po Tee Ta+ and )on3 =o alleging t(at for consideration of t(e %ond& t(e t(ird *art3 defendants& e7ecuted an inde+nit3 agree+ent in favor of t(e Suret3 to inde+nif3 it for da+age& loss& e7*enses etc and t(at in t(e event 4udg+ent is rendered against it& t(e t(ird *art3 defendants %e ordered to rei+%urse Se*te+%er :& 1/90 O t(e t(ird *art3 defendants ans'er@ defense t(at t(e case is *re+ature as t(e +ain case (as not 3et %een ter+inated. Dece+%er 2& 1/90 O u*on ver%al +otion of t(e t(ird *art3 defendants& t(e trial court dis+issed t(e t(ird *art3 co+*laint for lacA of 4urisdiction t(at t(e t(ird *art3 co+*laint 'as filed after t(e *assage of RA 0?2? conferring original 4urisdiction on t(e !unici*al Court in civil cases involving not +ore t(an P10&000.00& and t(at t(e t(ird *art3 co+*laint refers to a clai+ of onl3 P9&000.00 Dece+%er 0& 1/90 O )C ordered suret3 to *a3 t(e Re*u%lic P5&000& 'it( interest CA@ Suret3 inter*osed its a**eal fro+ t(e order dis+issing its t(ird *art3 co+*laint and fro+ t(e decision ordering it to *a3 t(e Re*u%lic t(e a+ount of P5&000& contending t(at t(e trial court erred in 516 not declaring itself 'it(out 4urisdiction over t(e su%4ect +atter of t(e action& and 526 dis+issing t(e t(ird *art3 co+*laint. 8ut it certified t(e case to SC

Prof. Victoria A.

::

*ursuant to Sec 2 Article VIII of t(e Constitution and Sec 1:506 of RA 2/9 '(ere 4urisdiction of )C is in issue ISSUES 1. >O< t(e trial court (ad 4urisdiction over t(e su%4ect +atter of t(e +ain action 2. >O< t(e trial court (ad 4urisdiction over t(e t(ird *art3 co+*laint HELD 1. C#S #ven t(oug( t(e total a+ount involved is onl3 P9&000 5P5&000 under t(e %ond and P1&000 as attorne3Ds fees6 and a court of first instance is vested 'it( 4urisdiction onl3 over cases in '(ic( t(e de+and& e7clusive of interest& or t(e value of t(e *ro*ert3 in controvers3& e7ceeds P10&000& *ursuant to section 44 of Re*u%lic Act 2/9& as a+ended %3 Re*u%lic Act 0?2? '(ic( tooA effect on .une 22& 1/90& t(e *resent action (aving %een filed on .une 20& 1/90 5t'o da3s %efore t(e effectivit3 of Re*u%lic Act 0?2? '(ic( %roadened t(e 4urisdiction of +unici*al and cit3 courts to include cases in '(ic( t(e de+and& e7clusive of interest& or t(e value of t(e *ro*ert3 in controvers3& does not e7ceed P10&0006 it is cannot %e argued t(at t(e courtDs 4urisdiction over t(e case 'as lost on .une 22& 1/90& '(en Re*u%lic Act 0?2? tooA effect& and t(erefore t(e case s(ould (ave %een re+anded to t(e +unici*al court. It is not dis*uted t(at t(e trial court ac1uired 4urisdiction over t(e su%4ect +atter on .une 20& 1/90 '(en t(e co+*laint 'as filed 'it( it. It is of no +o+ent t(at su++ons 'as served and t(at t(e case 'as (eard and decided after t(e effectivit3 of Re*u%lic Act 0?2?& %ecause t(e rule is fir+l3 entrenc(ed in our la' t(at 4urisdiction once ac1uired continues until t(e case is finall3 ter+inated 2. C#S It is true t(at t(e t(ird *art3 co+*laint 'as filed after t(e effectivit3 date of RA0?2?. It is liAe'ise true t(at t(e de+and t(erein +ade does not e7ceed P10&000& and& t(erefore& is not 'it(in t(e 4urisdiction of t(e Court of -irst Instance if it 'ere an inde*endent action. 8ut t(e t(ird *art3 co+*laint is an ancillar! suit '(ic( de*ends on t(e 4urisdiction of t(e court over t(e +ain action. Since t(e trial court (ad ac1uired 4urisdiction over t(e co+*laint& it necessaril3 follo's t(at it liAe'ise (ad 4urisdiction over t(e t(ird *art3 co+*laint '(ic( is %ut an incident t(ereof. )(is +ust %e so %ecause 4urisdiction over t(e +ain case e+%races all incidental +atters

T-i") P%" ( C!Dp*%in , e c. REPUBLIC V CENTRAL SURETY P INSURANCE COMPANY 95 SCRA 2:3

Civil Procedure Digest

arising t(erefro+ and connected t(ere'it(. A contrar3 rule 'ould result in ,s*lit 4urisdiction, '(ic( is not favored& and in +ulti*licit3 of suits& a situation o%no7ious to t(e orderl3 ad+inistration of 4ustice. Talisa%0+ila% .illing Co.( et al. vs. CIR( et al; )(e t(ird *art3 co+*laint is %ut a continuation of t(e +ain action& its *ur*ose %eing +erel3 to seeA ,contri%ution& inde+nit3& su%rogation or an3 ot(er relief& in res*ect of (is o**onentDs clai+., 5Rule 9& See. 12.6 )(e ai+ is to avoid t(e actions '(ic( s(ould %e tried toget(er to save t(e ti+e and cost of a redu*lication of evidence& to o%tain consistent results fro+ identical or si+ilar evidence& and to do a'a3 'it( t(e serious (andica* to a defendant of a ti+e difference %et'een a 4udg+ent against (i+ and a 4udg+ent in (is favor against t(e t(ird *art3 defendant. Petitioners urge t(at a rule si+ilar to t(e rule on counterclai+ %e ado*ted. 8ut a t(ird *art3 co+*laint cannot %e liAened to a counterclai+ '(ic( +ust %e 'it(in t(e 4urisdiction of t(e court tr3ing t(e +ain case& %ecause unliAe a t(ird *art3 co+*laint& a counterclai+ ,need not di+inis( or defeat t(e recover3 soug(t %3 t(e o**osing *art3& %ut +a3 clai+ itself e7ceeding in a+ount or different in Aind fro+ t(at soug(t in t(e o**osing *art3Ds clai+, 5Rule 9& Sec. 96. A t(ird *art3 co+*laint +a3 liAe'ise %e liAened to a cross clai+ under Rule /& section 5. ... )(e *rinci*le is at once a**arent& na+el3& t(at '(ere an action is ancillar3 to a +ain action over '(ic( a court (as 4urisdiction& no inde*endent 4urisdiction is needed to ena%le t(e court to taAe cogniBance of t(e ancillar3 action. Disposition t(e order dated Dece+%er 2& 1/90 dis+issing t(e t(ird *art3 co+*laint is set aside$ t(e decision dated Dece+%er 0& 1/90 is +odified in t(e sense t(at t(e t(ird *art3 defendants are (ere%3 ordered to *a3 to t(e Suret3 '(atever su+s t(e latter 'ill *a3 to t(e Re*u%lic %3 virtue of t(e 4udg+ent a**ealed fro+.

A2010 Avena
several *ieces of e1ui*+ent '(ic( it failed to *a3 for& des*ite de+ands. !onarA t(en filed in t(e R)C an action to recover a su+ of +one3 a+ounting to P5 +illion *lus 12J interest. Asian filed a +otion to file and ad+it ans'er 'it( 0rd *art3 co+*laint against 8ect(el Overseas Cor*. Asian& alt(oug( ad+itting t(e its inde%tedness to !onarA& clai+ed t(at it used t(e leased e1ui*+ent to *erfor+ services in favor of 8ect(el& '(ic( in turn failed to *a3 Asian for t(e sa+e. Asian clai+s t(at it needs to i+*lead 8ect(el for Fcontri%ution& inde+nit3& su%rogation& or ot(er reliefs to off set or to *a3 t(e a+ount of +one3L clai+ed %3 !onarA. !onarA in turn filed a +otion for su++ar3 4udg+ent& contending t(at t(ere 'ere no genuine issues raised. R)C@ !otion of Asian for leave to file a 0 rd *art co+*laint 'as denied& %ut +otion of !onarA for su++ar3 4udg+ent granted 5R)C considered t(is as +otion for 4udg+ent on t(e *leadings6. .udg+ent ordered Asian to *a3 !onarA P5 +illion *lus interest Asian a**ealed to CA. CA affir+ed& sustaining t(e disallo'ance of t(e 0rd *art3 co+*laint on t(e ground t(at t(e transaction %et'een t(e said *arties did not arise out of t(e sa+e transaction on '(ic( !onarA2s clai+ 'as %ased. !-R 'as also denied. ISSUE0S 1. >O< a 0rd *art3 co+*laint is *ro*er 2. >O< 4udg+ent on t(e *leadings is *ro*er HELD 1. <O Ratio Section 11& Rule 9 *rovides@ FDrd =fourth# etc.>. part! complaint. M A 0rd 5fourt(& etc.6 M *art3 co+*laint is a clai+ t(at a defending *art3 +a3& 'it( leave of court& file against a *erson not a *art3 to t(e action& called t(e 0rd 5fourt(& etc.6 M *art3 defendant& for contri%ution& inde+nit3& su%rogation or an3 ot(er relief& in res*ect of (is o**onent2s clai+.L Reasoning Pur*ose of t(e rule@ *er+it a defendant to assert an inde*endent clai+ against a 0rd *art3 '(ic( (e& ot(er'ise& 'ould assert in anot(er action& t(us *reventing +ulti*licit3 of suits. )(is is a rule of *rocedure and does not create a su%stantial rig(t. <eit(er does it a%ridge& enlarge& or nullif3 t(e su%stantial rig(ts of an3 litigant. )(is rig(t to file a 0rd *art3 co+*laint against a 0rd *art3 rests in t(e discretion of t(e trial court. )(e 0rd *art3 co+*laint is actuall3 inde*endent of& se*arate and distinct fro+ t(e *laintiff2s co+*laint& suc( t(at 'ere it not for t(e rule& it 'ould (ave to %e filed se*aratel3 fro+ t(e original co+*laint.

Prof. Victoria A.

:4

ASIAN CONSTRUCTION V CA @MONARF EEUIPMENTA BB SCRA BB CALLEJO= M%( 32, 9BB4

NATURE Petition for revie' on certiorari decision of CA FACTS Asian contruction leased fro+ !onarA #1ui*+ent

Prere1uisite to t(e e7ercise of rig(t@ so+e su%stantive %asis for a 0rd *art3 clai+ is found to e7ist& '(et(er t(e %asis %e one of inde+nit3& su%rogation& contri%ution or ot(er su%stantive rig(t. 8ringing of a 0rd *art3 defendant is *ro*er if (e 'ould %e lia%le to *laintiff& defendant or %ot( for all or *art of t(e *laintiff2s clai+ against t(e original defendant& alt(oug( t(e 0rd *art3 defendant2s lia%ilit3 arises out of anot(er transaction. )(e defendant +a3 i+*lead anot(er as 0rd *art3 defendant 5a6 on an allegation of lia%ilit3 of t(e latter to t(e defendant for contri%ution& inde+nit3& su%rogation or an3 ot(er relief$ 5%6 on t(e ground of direct lia%ilit3 of t(e 0rd *art3 defendant to t(e *laintiff$ or 5c6 t(e lia%ilit3 of t(e 0rd *art3 defendant to %ot( t(e *laintiff and t(e defendant. )(ere +ust %e a causal connection %et'een t(e clai+ of t(e *laintiff in (is co+*laint and a clai+ for contri%ution& inde+nit3 or ot(er relief of t(e defendant against t(e 0rd *art3 defendant. Capa!as v. C54@ Court +ade out t(e ff tests@ 516 '(et(er it arises out of t(e sa+e transaction on '(ic( t(e *laintiff2s clai+ is %ased$ or '(et(er t(e 0rd *art3 clai+& alt(oug( arising out of anot(er or different contract or transaction& is connected 'it( t(e *laintiff2s clai+$ 526 '(et(er t(e 0rd *art3 defendant 'ould %e lia%le to t(e *laintiff or to t(e defendant for all or *art of t(e *laintiff2s clai+ against t(e original defendant& alt(oug( t(e 0rd *art3 defendant2s lia%ilit3 arises out of anot(er transaction$ and 506 '(et(er t(e 0rd *art3 defendant +a3 assert an3 defenses '(ic( t(e 0rd *art3 *laintiff (as or +a3 (ave to t(e *laintiff2s clai+. 0rd *art3 co+*laint does not (ave to s(o' 'it( certaint3 t(at t(ere 'ill %e recover3 against t(e 0rd *art3 defendant$ sufficient t(at *leadings s(o' *ossi%ilit3 of recover3. In deter+ining t(e sufficienc3 of t(e 0rd *art3 co+*laint& t(e allegations in t(e original co+*laint and t(e 0rd *art3 co+*laint +ust %e e7a+ined. A 0rd *art3 co+*laint +ust allege facts '(ic( prima facie s(o' t(at t(e defendant is entitled to contri%ution& inde+nit3& su%rogation or ot(er relief fro+ t(e 0rd *art3 defendant. In t(is case& t(e clai+s of !onarA against Asian arose out of t(e contracts of lease and sale$ suc( transactions are different and se*arate fro+ t(ose %et'een 8ect(el and Asian '(ere t(e e1ui*+ent leased fro+ !onarA 'as used %3 t(e *etitioner. )(ere is no s(o'ing in t(e *ro*osed 0rd *art3 co+*laint t(at 8ect(el Ane' or a**roved t(e use of t(e leased e1ui*+ent %3 Asian for t(e said *ro4ect

Civil Procedure Digest

fact t(at Asian used t(e e1ui*+ent it leased fro+ !onarA in connection 'it( its *ro4ect 'it( 8ect(el does not *rovide a su%stantive %asis for t(e filing of a 0rd *art3 co+*laint against t(e latter. )(ere is no causal connection %et'een t(e clai+ of !onarA& and t(e failure of 8ect(el to *a3 t(e %alance of its account to Asian after t(e co+*letion of t(e *ro4ect. 2. C#S Ratio Section 1& Rule 04@ F*udgment on the pleadings. M >(ere an ans'er fails to tender an issue& or& ot(er'ise& ad+its t(e +aterial allegations of t(e adverse *art32s *leading& t(e court +a3& on +otion of t(at *art3& direct 4udg+ent on suc( *leading. ;o'ever& in actions for declaration of nullit3 or annul+ent of +arriage or for legal se*aration& t(e +aterial facts alleged in t(e co+*laint s(all al'a3s %e *roved.L Reasoning )(e denial of t(e *etitioner2s +otion 'it( leave to file a t(ird *art3 co+*laint against 8ect(el is 'it(out *re4udice to its rig(t to file a se*arate co+*laint against t(e latter. Considering t(at t(e *etitioner ad+itted its lia%ilit3 for t(e *rinci*al clai+ of t(e res*ondent in its Ans'er 'it( )(ird Part3 Co+*laint& t(e trial court did not err in rendering 4udg+ent on t(e *leadings against it. Disposition Petition is denied.

A2010 Avena
t'o letters to defendant asAing for eit(er co+*letion of deliver3 or account ad4ust+ent of t(e alleged undelivered 000 ft. of 'ire ro*e. On <ove+%er 20& 1/91& a co+*laint docAeted as Civil Case <o. IV /0092 'as filed in t(e !unici*al Court of !anila %3 one Adolfo 8enavides '(o clai+ed to (ave ac1uired t(e outstanding credit account of Calo fro+ defendant A4a7 International& Inc. C(arge Order <o. 0:0:1 'as a+ong t(ose included in t(e assigned account. Su%se1uentl3& a 4udg+ent %3 default 'as entered& and a 'rit of e7ecution issued& against *laintiff Calo. On .anuar3 20& 1/92& *laintiff Calo& assisted %3 (er (us%and& !arcos Calo& filed in t(e Court of -irst Instance of Agusan a co+*laint against defendant asAing 516 t(at t(e latter eit(er effect co+*lete deliver3 of C(arge Order <o. 0:0:1 or t(at s(e %e relieved fro+ *a3ing P?55.00 and 526 t(at t(e latter inde+nif3 (er for P12&000 as attorne3Ds fees& da+ages and e7*enses of litigation.2 )(e case 'as docAeted as Civil Case <o. ?90. Instead of filing an ans'er& defendant +oved for t(e dis+issal of Civil Case ?90 on t(e ground& inter alia& t(at t(e su%4ect t(ereof 'as involved and inti+atel3 related to t(at in Civil Case <o. IV /0092 of t(e !unici*al Court of !anila. )(e court a 1uo sustained t(e +otion and dis+issed t(e case. Plaintiff a**ellant +oved for reconsideration and ne' trial. >(en t(is failed& s(e instituted t(e *resent a**eal. )(e dis+issal of Civil Case <o. ?90 %3 t(e court a 1uo %ecause of t(e *endenc3 of Civil Case <o. IV /0092 in t(e +unici*al court of !anila is *redicated on t(e su**osition t(at *laintiffDs clai+ is a co+*ulsor3 counter clai+ t(at s(ould %e filed in t(e latter case. )(ere is no 1uestion t(at it arises out of t(e sa+e transaction '(ic( is t(e %asis of t(e co+*laint in Civil Case <o. IV /0092 and does not re1uire t(e *resence of t(ird *arties over '(o+ t(e +unici*al court of !anila could not ac1uire 4urisdiction. ISSUE >O< *laintiffDs clai+ is a co+*ulsor3 counter clai+ t(at s(ould %e filed in t(e earlier case HELD <o. PlaintiffDs clai+ is not a co+*ulsor3 counterclai+ in Civil Case <o. IV /0092 for t(e si+*le reason t(at t(e a+ount t(ereof e7ceeds t(e 4urisdiction of t(e +unici*al court. Reasoning )(e rule t(at a co+*ulsor3 counterclai+ not set u* is %arred& '(en a**lied to t(e +unici*al

Prof. Victoria A.

:5

court& *resu**oses t(at t(e a+ount involved is 'it(in t(e said courtDs 4urisdiction. Ot(er'ise& as t(is Court (ad alread3 noted in Cu "a3 v. =al+es 'e 'ould co+e to t(e a%surd situation '(ere a clai+ +ust %e filed 'it( t(e +unici*al court '(ic( it is *ro(i%ited fro+ taAing cogniBance of& %eing %e3ond its 4urisdiction. 8esides& t(e reason underl3ing t(e rule& '(ic( is to settle all related controversies in one sitting onl3& does not o%tain. -or& even if t(e counterclai+ in e7cess of t(e a+ount cogniBa%le %3 t(e inferior court is set u*& t(e defendant cannot o%tain *ositive relief. )(e Rules allo' t(is onl3 for t(e defendant to *revent *laintiff fro+ recovering fro+ (i+. )(is +eans t(at s(ould t(e court find %ot( *laintiffDs co+*laint and defendantDs counterclai+ 5for an a+ount e7ceeding said courtDs 4urisdiction6 +eritorious& it 'ill si+*l3 dis+iss t(e co+*laint on t(e ground t(at defendant (as a %igger credit. Since defendant still (as to institute a se*arate action for t(e re+aining %alance of (is counterclai+& t(e *revious litigation did not reall3 settle all related controversies. Disposition Plaintiff CaloDs clai+ of P12&000.00 not %eing a co+*ulsor3 counterclai+ in Civil Case <o. VI /0092& it need not %e filed t(ere. )(e *endenc3 t(en of said civil case could not %e *leaded in a%ate+ent of Civil Case <o. ?90. Conse1uentl3& t(e lo'er court erred in dis+issing *laintiffDs co+*laint.

COMPULSORY COUNTERCLAIM0CROSSCLAIM CALO %ppe**%n , '#.AJAO INTERNATIONAL, INC, )e&en)%n %ppe**ee 99 SCRA >>5 BEN/ZON, M%"c- 31, 3>5;
NATURE Petition for certiorari& *ro(i%ition and +anda+us on decision of C-I of Agusan dis+issing t(e co+*laint of Calo FACTS So+eti+e on !a3 :& 1/5/& *laintiff a**ellant Calo ordered fro+ defendant a**ellee A4a7 International& Inc.& 1&200 ft. of .o(n S(a' 'ire ro*e at P2.?5 *er foot. )(e transaction 'as evidenced %3 C(arge Order <o. 0:0:1& for P0&420.00. According to *laintiff Calo& '(en t(e 'ire ro*e 'as delivered to 8utuan Cit3& t(e sa+e 'as found s(ort of 000 ft. Plaintiff t(en 'rote

/OJO V /OYALA
P%+e 95 NATURE A**eal fro+ a decision of t(e C-I of Sorsogon FACTS allegedl3 a *acto de retro sale 5t(e ot(er *art3 alleged it 'as a +ortgage6& =o4o t(e %u3er alleged t(at t(e *eriod for rede+*tion (as alread3 la*sed so (e filed a *etition for consolidation of o'ners(i*. =o3ala2s& t(e %u3ers '(o 'ere alleging t(at t(e3 (ad o%tained a cas( loan fro+ =o4o and t(e land allegedl3 sold to =o4o 'as onl3 a securit3 to t(e loan& and t(at t(e3 tried to *a3 t(eir de%t to =o4o %ut =o4o refused. =o3ala2s filed a counterclai+ for =o4o to receive t(e a+ount due& for t(e docu+ent to %e declared a +ortgage and not a *acto de retro sale& for P1?00 *er annu+ for t(e fruits of said *ro*ert3 and t(at& if ever t(e docu+ent %e dee+ed a *acto de retro sale& for =o4o to %e ordered to e7ecute a deed of resale in favor of t(e =o3alas.

Civil Procedure Digest

=o3ala2s s*ouse died& )C ordered =o4o to a+end t(e Co+*laint to su%stitute t(e s*ouse 'it( one of (er successors in interest as *art3. <ot'it(standing t(e la*se of 40 da3s after recei*t of co*3 of )C order& =o4o allegedl3 failed to su%+it t(e a+ended co+*laint so =o3ala filed a +otion to dis+iss t(e *etition. )C dis+issed co+*laint& =o4o 'as also declared in default in re =o3ala2s counterclai+. )C ruled in favor of =o3ala. A**ellant a**ealed to t(e CA& '(ic( u*on finding t(at t(e said a**eal involves *urel3 1uestions of la'& certified t(e sa+e to t(e SC. ON COMPULSORY COUNTERCLAIM )(e a**ellant contends t(at t(ere is no occasion for t(e )C to declare (i+ in default in res*ect of a**ellee2s counterclai+ as said counterclai+ falls 'it(in t(e categor3 of co+*ulsor3 counterclai+ '(ic( does not call for an inde*endent ans'er as t(e co+*laint alread3 denies its +aterial allegations. It is no' settled t(at a *laintiff '(o fails or c(ooses not to ans'er a co+*ulsor3 counterclai+ +a3 not %e declared in default& *rinci*all3 %ecause t(e issues raised in t(e counterclai+ are dee+ed auto+aticall3 4oined %3 t(e allegations of t(e co+*laint. >(ile it is true t(at under Sec. 0 of Rule 1:& a co+*laint +a3 %e dis+issed for failure to *rosecute if t(e *laintiff fails to co+*l3 'it( an order of t(e court& said *rovision cannot a**l3 '(en t(e order ignored is a void one& as in t(is case. 5As in Sec 20 of Rule 0& t(e deat( of t(e defendant in a contractual +one3 clai+ does dis+iss suc( action for recover3& %ut 'ill %e allo'ed to continue until final 4udg+ent is entered. -avora%le 4udg+ent o%tained %3 t(e *laintiff s(all %e enforced in t(e +anner *rovided in t(ese Rules for *rosecuting clai+s against t(e estate of a deceased *erson. In 8arra+eda vs 8ar%ara& t(e SC (eld t(at an order to a+end t(e co+*laint& %efore t(e *ro*er su%stitution of *arties as directed %3 Sec. 1:& Rule 0 5Sec. 19& ne' la'6& is void and i+*oses u*on t(e *laintiff no dut3 to co+*l3 t(ere'it( to t(e end t(at an order dis+issing t(e said co+*laint& for suc( non co+*liance& 'ould si+ilarl3 %e void. It 'as furt(er (eld in -erriera vs =onBales t(at t(e continuance of a *roceeding during t(e *endenc3 of '(ic( a *art3 t(ereto dies& 'it(out suc( *art3 (aving %een validl3 su%stituted in accordance 'it( t(e rules& a+ounts to lacA of 4urisdiction. Disposition >;#R#-OR#& t(e decision a**ealed fro+ is set aside

A2010 Avena
B%""e) i& n! #e ,p CHAVEZ V SANDI/ANBAYAN /.R. N!. >31>3 /UTIERREZ, JR= J%n,%"( 9:, 3>>3
FACTS .ul3 01& 1/?:& t(e Re*u%lic of t(e P(ili**ines& t(roug( t(e Presidential Co++ission on =ood =overn+ent 5PC==6 'it( t(e assistance of Solicitor =eneral -rancisco C(aveB filed 'it( t(e res*ondent Sandigan%a3an a co+*laint docAeted as Civil Case <o. 0000 against #duardo Co4uangco& .r. and .uan Ponce #nrile& a+ong ot(ers& for reconve3ance& reversion and accounting& restitution and da+ages. After t(e denial of (is +otion to dis+iss& res*ondent #nrile filed (is ans'er 'it( co+*ulsor3 counterclai+ and cross clai+ 'it( da+ages. On .anuar3 00& 1/?/& res*ondent Sandigan%a3an issued a resolution '(ic( deferred )(e resolution of t(e !otion to Dis+iss t(e Counterclai+ against t(e Plaintiff govern+ent until after trialRes*ondent #nrile t(en re1uested leave fro+ t(e Sandigan%a3an to i+*lead t(e *etitioner and t(e PC== officials as *art3 defendants for lodging t(is alleged ,(arass+ent suit, against (i+. )(e +otion *ra3ing for leave to i+*lead additional *arties5C(aveB et al6 to (is counterclai+ 'as granted in a resolution dated .une ?& 1/?/& 'it(out *re4udice to t(e defenses '(ic( said defendants +a3 *ut fort( individuall3 or in co++on& in t(eir *ersonal ca*acities or ot(er'ise. In a later resolution dated <ove+%er 2& 1/?/& res*ondent Sandigan%a3an denied a +otion to reconsider t(e .une ?& 1/?/ resolution. )(ereafter& all t(e PC== officials filed t(eir ans'er to t(e counterclai+s invoAing t(eir i++unit3 fro+ suits as *rovided in Section 4 of #7ecutive Order <o. 1. Instead of filing an ans'er& t(e *etitioner co+es to t(is Court assailing t(e resolutions as rendered 'it( grave a%use of discretion a+ounting to lacA of 4urisdiction. Pe i i!ne"$# c*%iD no counter clai+ can %e filed against (i+ in (is ca*acit3 as Solicitor =eneral since (e is onl3 acting as counsel for t(e Re*u%lic. ;e cites t(e case of @orja v. @orja&?
8

Prof. Victoria A.

:2

since (e is si+*l3 t(e la'3er in t(e case& e7ercising (is dut3 under t(e la' to assist t(e =overn+ent in t(e filing and *rosecution of all cases *ursuant to Section 1& #7ecutive Order <o. 14& (e cannot %e sued in a counterclai+ in t(e sa+e case. ISSUES 1.>O< C(aveB 5Sol=#n6is i++une fro+ suit 2.>O< it is *ro*er to i+*lead C(aveB 5as Sol=en6 *etitioner as additional *art3 defendant in t(e counterclai+ filed %3 res*ondent #nrile HELD 1.<o. )(e general rule is t(at *u%lic officials can %e (eld *ersonall3 accounta%le for acts clai+ed to (ave %een *erfor+ed in connection 'it( official duties '(ere t(e3 (ave acted ultra vires or '(ere t(ere is a s(o'ing of %ad fait(. !oreover& t(e *etitionerDs argu+ent t(at t(e i++unit3 proviso under Section 45a6 of #7ecutive Order <o. 1 also e7tends to (i+ is not 'ell taAen. A +ere invocation of t(e i++unit3 clause does not ipso facto result in t(e c(arges %eing auto+aticall3 dro**ed. I++unit3 fro+ suit cannot institutionaliBe irres*onsi%ilit3 and non accounta%ilit3 nor grant a *rivileged status not clai+ed %3 an3 ot(er official of t(e Re*u%lic. 5id.& at *age 5?96 >(ere t(e *etitioner e7ceeds (is aut(orit3 as Solicitor =eneral acts in %ad fait(& or& as contended %3 t(e *rivate res*ondent& ,+aliciousl3 cons*ir5es6 'it( t(e PC== co++issioners in *ersecuting res*ondent #nrile %3 filing against (i+ an evidentl3 %aseless suit in derogation of t(e latterDs constitutional rig(ts and li%erties, 5Aollo& *. 41:6& t(ere can %e no 1uestion t(at a co+*laint for da+ages +a3 %e filed against (i+. ;ig( *osition in govern+ent does not confer a license to *ersecute or recAlessl3 in4ure anot(er. )(e actions governed %3 Articles 1/& 20& 21& and 02 of t(e Civil Code on
interests of (is client or t(at (e acts in t(eir %e(alf 'ill not (old (i+ lia%le for or +aAe (i+ entitled to an3 a'ard t(at t(e Court +a3 ad4udicate to t(e *arties& ot(er t(an (is *rofessional fees. )(e *rinci*le t(at a counterclai+ cannot %e filed against *ersons '(o are acting in re*resentation of anot(er Q suc( as trustees Q in t(eir individual ca*acities 5C(a+%ers v. Ca+eron& 2 -ed. Rules Service& *. 155$ 2/ -. Su**. :426 could %e a**lied 'it( +ore force and effect in t(e case of a counsel '(ose *artici*ation in t(e action is +erel3 confined to t(e *re*aration of t(e defense of (is client. A**ellant& (o'ever& asserted t(at (e filed t(e counterclai+ against said la'3er not in (is individual ca*acit3 %ut as counsel for t(e (eirs of Huintin de 8or4a. 8ut as 'e (ave alread3 stated t(at t(e e7istence of a la'3er client relations(i* does not +aAe t(e for+er a *art3 to t(e action& even t(is allegation of a**ellant 'ill not alter t(e result >e (ave arrived at 5at **. /24 /256

)(e a**earance of a la'3er as counsel for a *art3 and (is *artici*ation in a case as suc( counsel does not +aAe (i+ a *art3 to t(e action. )(e fact t(at (e re*resents t(e

Civil Procedure Digest

;u+an Relations +a3 %e taAen against *u%lic officers or *rivate citiBens aliAe. 2. <o. Senator #nrile (as to file a se*arate and distinct civil action for da+ages against t(e Solicitor =eneral. )(e c(arges *ressed %3 res*ondent #nrile for da+ages under Article 02 of t(e Civil Code arising fro+ t(e filing of an alleged (arass+ent suit 'it( +alice and evident %ad fait( do not constitute a co+*ulsor3 counterclai+. In t(e case of +iu Po v. @autista& 5100 SCRA 0?? V1/?1W6& 'e ruled t(at da+ages clai+ed to (ave %een suffered as a conse1uence of an action filed against t(e *etitioner +ust %e *leaded in t(e sa+e action as a co+*ulsor3 counterclai+. >e 'ere referring& (o'ever& to a case filed %3 t(e *rivate res*ondent against t(e *etitioners or *arties in t(e litigation. In t(e *resent case& t(e counterclai+ 'as filed against t(e la'3er& not against t(e *art3 *laintiff itself. )o allo' a counterclai+ against a la'3er '(o files a co+*laint for (is clients& '(o is +erel3 t(eir re*resentative in court and not a *laintiff or co+*lainant in t(e case 'ould lead to +isc(ievous conse1uences. )(e *ro%le+ is *articularl3 *er*le7ing for t(e Solicitor =eneral. As counsel of t(e Re*u%lic& t(e Solicitor =eneral (as to a**ear in controversial and *oliticall3 c(arged cases. It is not unusual for (ig( officials of t(e =overn+ent to un'ittingl3 use s(ortcuts in t(e Bealous desire to e7*edite e7ecutive *rogra+s or refor+s. )(e Solicitor =eneral cannot looA at t(ese cases 'it( indifferent neutralit3. ;is *erce*tion of national interest and o%edience to instructions fro+ a%ove +a3 co+*el (i+ to taAe a stance '(ic( to a res*ondent +a3 a**ear too *ersonal and %iased. It is liAe'ise unreasona%le to re1uire =overn+ent Prosecutors to defend t(e+selves against counterclai+s in t(e ver3 sa+e cases t(e3 are *rosecuting.

A2010 Avena
e7ecution of a final 4udg+ent in an e4ect+ent case +a3 %e sta3ed %3 a co e1ual court in order t(at t(e rig(t of inde+nification and retention of an alleged %uilder in good fait( +a3 not %e rendered +eaningless or illusor3 in an inde*endent civil action for s*ecific *erfor+ance. FACTS Petitioner "ual(ati Alda%a Co4uangco is t(e 'ido' of Don .uan Co4uangco& t(e registered o'ner of t(e dis*uted *arcel of residential land containing an area of 5?5 s1uare +eters and situated at San Agustin& !alolos& 8ulacan. !an3 3ears %acA 5a%out si7t3 3ears& according to t(e +unici*al trial court6 t(e *arents of *rivate res*ondent Purificacion Villegas& 'it( t(e ac1uiescence of Don .uan Co4uangco& constructed a residential (ouse and later a structure (ousing a %aAer3 on t(e aforesaid lot. It 'as understood t(at t(e3 could re+ain on t(e land 'it( (is %lessings and 'it(out *a3ing rentals on condition t(at t(e3 'ould vacate t(e *re+ises '(en needed %3 t(e o'ner. After (er *arentDs deat(& Villegas re+ained in t(e *ro*ert3& renovating t(e sa+e and s*ending P000&000.00 in t(e *rocess. S(e also leased out a *ortion of t(e land to Sia*no A**liances at P900.00 a +ont( 'it(out t(e Ano'ledge and consent of Don .uan Co4uangco. )(is latter act a**arentl3 destro3ed (er congenial relations 'it( t(e lando'ner %ecause soon t(ereafter& Don .uan Co4uangco& t(roug( (is attorne3 in fact& de+anded t(at s(e leave t(e *ro*ert3. Des*ite (is re*eated 'ritten de+ands for (er to surrender *ossession of t(e *ro*ert3& Villegas refused& *ro+*ting Co4uangco to institute e4ect+ent *roceedings against (er %efore t(e !unici*al )rial Court 5!)C6 of !alolos& 8ulacan& 8ranc( I on August 20& 1/:?. On -e%ruar3 5& 1/:/& Don .uan Co4uangco died intestate. In t(e trial courtDs order of Octo%er 22& 1/:/& (is 'ife "ual(ati& (erein *etitioner& toget(er 'it( ne*(e's and nieces& 'ere su%stituted as *arties *laintiffs. In its decision dated .une 00& 1/?0& t(e inferior court dis+issed t(e action for e4ect+ent for lacA of 4urisdiction. It cited t(e unassaila%le fact t(at Villegas and (er *redecessors in interest (ad %een in actual *ossession of t(e su%4ect land for no less t(an si7t3 3ears and t(at in addition& Villegas asserted an adverse clai+ of o'ners(i*& t(us transfor+ing t(e

Prof. Victoria A.
suit into an ,accion *u%liciana, '(ic( is *ro*erl3 cogniBa%le %3 courts of first instance 5no' regional trial courts6.

:;

On a**eal to t(e t(en Court of -irst Instance 5C-I6 of !alolos& 8ranc( [V& t(e inferior court 'as reversed insofar as it (ad erroneousl3 denied 4urisdiction over t(e e4ect+ent case. )(e trial court t(en ordered Villegas to vacate t(e *re+ises and to surrender *ossession t(ereof to (erein *etitioner Co4uangco. )(e case 'as elevated to t(e a**ellate court and to t(e Su*re+e Court and in %ot( instances& (erein *etitioner Co4uangcoDs rig(t of *ossession over t(e land 'as u*(eld. After entr3 of 4udg+ent 'as +ade on <ove+%er 20& 1/?5& (erein *etitioner 'ent to t(e Regional )rial Court of !alolos& 8ranc( [V& '(ere s(e filed a +otion for e7ecution of t(e 4udg+ent& '(ic( t(e court granted on .une 00& 1/?9. On .ul3 2/& 1/?9& a 'rit of de+olition 'as issued against Villegas& '(o did not o**ose t(e ordered de+olition %ut instead asAed t(e lo'er court to give (er +ore ti+e 5fort3 da3s fro+ August :& 1/?96 to effect t(e transfer of (er *ersonal *ro*erties and to re+ove t(e i+*rove+ents on t(e su%4ect lot to '(ic( +otion t(e court acceded. On Se*te+%er 19& 1/?9& %efore t(e la*se of t(e grace *eriod& Villegas filed a se*arate civil action docAeted as Civil Case <o. /0/4 ! against *etitioner Co4uangco and t(e *rovincial s(eriff ,for s*ecific *erfor+ance 'it( urgent *ra3er for issuance of a te+*orar3 restraining order and *reli+inar3 in4unction., )(is case& instead of %eing referred to 8ranc( [V '(ic( (ad earlier issued t(e 'rit of de+olition& 'as raffled to anot(er !alolos %ranc( of t(e 8ulacan )rial Court& s*ecificall3 8ranc( [VII '(ic( issued on t(e sa+e da3& Se*te+%er 19& 1/?9& a te+*orar3 restraining order en4oining Co4uangco and *articularl3 t(e s(eriff ,fro+ enforcing or i+*le+enting t(e Order of De+olition issued in Civil Case <o. :042 ! . . ., )(is 'as follo'ed %3 anot(er order dated Octo%er 9& 1/?9 granting a 'rit of *reli+inar3 in4unction. )(e t'in orders are no' t(e su%4ect of t(e instant *etition for certiorari on t(e ground t(at t(e3 (ave %een issued 'it( grave a%use of discretion a+ounting to lacA of 4urisdiction. ISSUES 1. >(et(er or not t(e res*ondent court validl3 issued an in4unction

LUALHATI A. COJUAN/CO '#. PURIFICACION VILLE/AS 3;: SCRA 12: FERNAN,

NATURE )(e instant *etition for certiorari and *ro(i%ition raises t(e ulti+ate issue of '(et(er or not t(e

Civil Procedure Digest

2. >(et(er or not Villegas can successfull3 raise an inde*endent action to assert t(at s(e and (er *redecessors are %uilders in good fait( and t(at t(e3 are entitled to recover t(e value of i+*rove+ents on t(e lot. HELD 1. <O. Ratio. As earl3 as 1/22 in t(e case of Ca%igao v. Del Rosario& t(is Court laid do'n t(e doctrine t(at ,no court (as *o'er to interfere %3 in4unction 'it( t(e 4udg+ents or decrees of a court of concurrent or coordinate 4urisdiction (aving *o'er to grant t(e relief soug(t %3 in4unction., Reasoning. )(e various %ranc(es of t(e court of first instance of a *rovince or cit3& (aving as t(e3 (ave t(e sa+e or e1ual aut(orit3 and e7ercising as t(e3 do concurrent and coordinate 4urisdiction& s(ould not& cannot and are not *er+itted to interfere 'it( t(eir res*ective cases& +uc( less 'it( t(eir orders or 4udg+ents. A contrar3 rule 'ould o%viousl3 lead to confusion and seriousl3 (a+*er t(e ad+inistration of 4ustice. 2. <O Ratio. Rule /& Section 4 of t(e Revised Rules of Court on co+*ulsor3 counterclai+ *rovides t(e ans'er. It states@ ,A counterclai+ or cross clai+ not set u* s(all %e %arred if it arises out of or is necessaril3 connected 'it(& t(e transaction or occurrence t(at is t(e su%4ect +atter of t(e o**osing *art3Ds or co *art3Ds clai+ and does not re1uire for its ad4udication t(e *resence of t(ird *arties of '(o+ t(e court cannot ac1uire 4urisdiction. Reasoning. VillegasD clai+ to recover co+*ensation for i+*rove+ents +ade on t(e land is essentiall3 in t(e nature of a counterclai+ since it is inter'oven 'it( t(e fact of *ossession. Said clai+ for co+*ensation s(ould (ave %een *resented as a counterclai+ in t(e e4ect+ent suit. It is dee+ed %arred if not raised on ti+e and t(e *art3 in error is *recluded fro+ setting it u* in a su%se1uent litigation. )(e rule on co+*ulsor3 counter clai+ is designed to ena%le t(e dis*osition of t(e entire conflict at one ti+e and in one action. )(e *(iloso*(3 of t(e rule is to DISCOIRA=# !I")IP"ICI)C O- SII)S. According to Villegas& t(e reason '(3 t(e counterclai+ for inde+nification 'as not +ade in t(e original action 'as %ecause it %eca+e a ,ri*e issue, onl3 after t(e e4ect+ent *roceedings. Villegas

A2010 Avena
contended t(at t(e esto**el of 4udg+ent could onl3 e7tend to t(ose facts and conditions e7isting at t(e ti+e t(e 4udg+ent 'as rendered and not to t(ose '(ic( su*ervened %efore t(e second suit. )(e argu+ent is untena%le. In (er *leadings& Villegas re*eatedl3 stressed t(at t(e residential (ouse '(ic( (er *arents (ad constructed 'as alread3 t(ere on t(e 1uestioned lot for as long as s(e could re+e+%er& t(at s(e (erself (as lived t(ere all (er life and t(at in t(e (onest %elief t(at t(e land (ad %een ,donated, to (er *arents %3 (er ,Aunt )ecla,& s(e +ade various i+*rove+ents and renovation t(ereon. O%viousl3& suc( declarations on t(e *art of Villegas co+*letel3 negate (er a%surd clai+ t(at t(e factual %asis for (er su%se1uent action arose after t(e e4ect+ent suit %eca+e final. )(us& Villegas s(ould (ave set fort(& si+ultaneousl3 'it( t(e assertion t(at s(e 'as entitled to t(e *arcel of land %3 rig(t of in(eritance& t(e alternative clai+ t(at assu+ing s(e 'as not legall3 entitled to t(e dis*uted lot& at least as a %uilder in good fait(& s(e (as t(e rig(t to t(e value of t(e %uildings and i+*rove+ents '(ic( s(e and (er *arents (ad introduced on t(e land. And '(ile it +a3 %e argued t(at t(e defense of %eing a %uilder in good fait( 'ould (ave %een inconsistent 'it( (er clai+ of o'ners(i*& in t(e case of Castle 8ros.& >olf and Sons v. =o .uno& t(e Court (eld t(at a *art3 +a3 set fort( as +an3 defenses and counterclai+s as (e +a3 (ave& '(atever %e t(eir nature. )(ese +a3 even %e inconsistent 'it( eac( ot(er %ecause '(at is sufficient is t(at eac( is consistent 'it( itself. Since Villegas failed to set u* suc( alternative defense 5i.e. a %uilder in good fait( is entitled to recover t(e value of i+*rove+ents6 and instead relied on t(e sole defense t(at s(e in(erited t(e land fro+ (er *arents& t(e re4ection t(ereof 'as a co+*lete resolution of t(e controvers3 %et'een t(e *arties '(ic( %ars a later case %ased u*on t(e un*leaded defense. )(e ad4udication of t(e issue 4oined %3 t(e *arties in t(e earlier case constitutes res 4udicata& t(e t(eor3 %eing t(at '(at is %arred %3 *rior 4udg+ent are not onl3 t(e +atters actuall3 raised and litigated u*on& %ut also suc( ot(er +atters as could (ave %een raised %ut 'ere not. 10 It %ears e+*(asiBing t(at in e4ect+ent cases& t(e rule is e7*licit t(at t(e 4udg+ent +ust %e e7ecuted i++ediatel3 '(en it is in favor of t(e *laintiff to *revent furt(er da+ages to (i+ arising fro+ t(e loss of *ossession. )(e sense of urgenc3 is +ore *ronounced in t(e case at %ar '(ere t(e e4ect+ent

Prof. Victoria A.

:>

case in favor of Co4uangco 'as decided in 1/:? and su%se1uentl3 a**ealed all t(e 'a3 to t(e Su*re+e Court. 8ut t(e final victor3 continues to elude Co4uangco to t(is da3 due to a large e7tent to t(e legal +aneuvers utiliBed %3 Villegas to forestall t(e inevita%le. -or its *art& res*ondent trial court (as atte+*ted to 4ustif3 its 'rit of in4unction %3 stating t(at t(e i+*ending de+olition of VillegasD (ouse and ot(er %uildings on t(e dis*uted *ro*ert3 'ould render inutile (er rig(t as a %uilder in good fait(. >e cannot agree. )(e loss to Villegas is not sufficient to 'arrant a %latant disregard of esta%lis(ed *recedents es*eciall3 '(en it is %orne in +ind t(at for +ore t(an (alf a centur3& Villegas and (er fa+il3 (ave en4o3ed t(e fruits of t(e land 'it(out *a3ing a single centavo in return. Surel3& t(e e1uities are +ore in favor of Co4uangco& t(e lando'ner. Dispositive >;#R#-OR#& t(e *etition is granted. )(e res*ondent court is (ere%3 ordered to DIS!ISS Civil Case <o. /0/4 ! and all *roceedings (eld t(erein are declared null and void. )(e Regional )rial Court of !alolos& 8ulacan& 8ranc( [V is ordered to i++ediatel3 e7ecute t(e decision in t(e e4ect+ent case. Civil Case <o. :042 !. Costs against *rivate res*ondent Villegas. )(is decision is i++ediatel3 e7ecutor3.

CARPENA VS MANALO /R N!. 2:959 PARAS= Oc !7e" 9>, 3>;2

NATURE Action to recover *ossession FACTS "ot :4 of t(e Cala+%a Cadastre 'as co o'ned 8eatriB !analo and (er co++on la' (us%and& "uciano !analo. On <ove+%er 5& 1/4: 8eatriB sold (er one (alf interest t(erein to t(e s*ouses De+etrio Car*ena and Salud Catindig for t(e su+ of P5&000.00. )o Aee* t(e transaction fro+ "uciano& t(e sale 'as +ade in t(e neig(%oring to'n of Sta. Rosa& "aguna& and t(e *arties agreed t(at 8eatriB 'ould re+ain in *ossession of t(e *ro*ert3 %ut 'it( t(e o%ligation of *a3ing t(e land ta7es due t(ereon. On !a3 22& 1/4? 8eatriB and "uciano 'ere +arried& %ut s(e died t(ree +ont(s t(ereafter. On August 00& 1/4? t(e deed of t(e sale 'as registered and& as a result& )C) <o. 19?00 'as

Civil Procedure Digest

cancelled and )C) <o. 2004 'as issued in t(e na+e of t(e Car*ena s*ouses for t(e *ortion *urc(ased %3 t(e+& '(ic( 'as identified as "ot <o. :4 8 of su%division *lan Psd 20200. I*on t(e deat( of t(eir vendor& t(e Car*enas notified "uciano of t(e sale and %esides de+anded of (i+ t(e *ossession of lot :4 8& %ut t(e latter& instead of ac1uiescing t(ereto& filed an action against t(e+ to annul t(e sale +ade in t(eir favor %3 8eatriB and to (ave (i+self declared o'ner of t(e *ro*ert3 su%4ect +atter t(ereof 5Civil Case <o. /1/46. DefendantDs ans'er in said case alleged& as defense& t(at t(e sale in t(eir favor 'as valid and t(at %3 virtue of t(e sa+e t(e3 %eca+e o'ners of t(e *ro*ert3 su%4ect +atter t(ereof. Conse1uentl3& t(e3 *ra3ed for t(e dis+issal of t(e case and for da+ages. )(e case 'as dis+issed %3 t(e lo'er court after a trial on t(e +erits and on a**eal& t(e Court of A**eals affir+ed t(e dis+issal. It a**ears t(at in 1/45 a %arong %arong 'as erected on "ot :4 8 %3 a tenant occu*3ing t(e sa+e. )'o 3ears t(ereafter t(e %uilding 'as sold to 8eatriB !analo for P200.00& and t(ereafter said i+*rove+ent& 'it( an assessed value of P150.00& 'as declared in (er na+e for ta7ation *ur*oses. After (er deat(& "uciano !analo and t(eir c(ildren continued to occu*3 said (ouse& +aAing considera%le i+*rove+ents t(ereon in t(e 3ears 1/52 and 1/50& %ut in Dece+%er 1/54 "uciano !analo sold it to Pelagia Cailles Vda. de Inson and 8eronica Ca*areda '(o %egan occu*3ing t(e sa+e on A*ril 2& 1/55. )(e *resent action 'as co++enced on A*ril 11& 1/55 in t(e Court of -irst Instance of "aguna %3 t(e Car*ena s*ouses against "uciano !analo& Pelagia Cailles Vda. de Inson and 8eronica Ca*areda to recover t(e *ossession of "ot :4 8 and t(e (ouse erected t(ereon as 'ell as reasona%le rental for its use and occu*anc3 fro+ August 1& 1/4?. A**ellees (erein alleged in t(eir ans'er t(at t(e sale e7ecuted %3 8eatriB !analo in favor of a**ellants covered onl3 "ot :4 8 and not t(e (ouse erected t(ereon. >(ile t(e case 'as *ending in t(e lo'er court& or +ore s*ecificall3 on A*ril 1:& 1/55& a**ellees& 'it(out t(e consent of a**ellants& +oved t(e (ouse in 1uestion to t(e ad4oining lot& '(ic( co+*elled t(e latter to file a su**le+ental co+*laint to recover fro+ t(e for+er t(e su+ of P2&500.00 re*resenting t(e value of t(e (ouse& *lus attorne3Ds fees. As a**ellees (ad alread3 vacated "ot :4 8& t(e lo'er court& after trial on t(e +erits& rendered 4udg+ent declaring a**ellant t(e o'ners of t(e (ouse in 1uestion and sentencing a**ellees to *a3 a**ellants t(e su+ of P1&000.00 re*resenting t(e fair +arAet

A2010 Avena
value t(ereof. A**ellantsD clai+ for da+ages for t(e use and occu*anc3 of t(e *re+ises 'as& (o'ever& dis+issed for not (aving %een set u* in Civil Case <o. /1/4& t(e sa+e %eing co+*ulsor3 counterclai+. )(e *resent is t(eir a**eal fro+ t(is *ortion of t(e decision of t(e lo'er court ISSUE >O< t(e action filed %3 "uciano !analo is a co+*ulsor3 counterclai+ HELD Ces. As stated a%ove& t(e *ur*ose of t(e action filed %3 "uciano !analo 5Civil Case <o. /1/4 of t(e Court of -irst Instance of "aguna6 'as to annul t(e sale +ade %3 (is 'ife& 8eatriB !analo& in favor of t(e Car*ena s*ouses and to recover o'ners(i* of t(e *ro*ert3 su%4ect +atter t(ereof. )(e rents '(ic( a**ellants no' seeA to collect fro+ a**ellees 'ere for t(e occu*anc3 of said *ro*ert3 and of t(e (ouse constructed t(ereon. ;ad t(e sale %een annulled& it 'ould (ave +eant t(at t(e Car*enas& a**ellants (erein& (ad no rig(t to collect rents fro+ t(e occu*ants of t(e lot and of t(e (ouse aforesaid& '(ile if t(e court sustained t(e validit3 of t(e sale& t(e3 'ould (ave (ad suc( rig(t. It is t(us o%vious t(at t(e clai+ '(ic( t(e3 seeA to enforce no' as& to sa3 t(e least& a +atter necessaril3 connected 'it( t(e transaction or occurrence su%4ect +atter of t(e co+*laint filed against t(e+ in Civil Case <o. /1/4. It follo's t(at t(e sa+e constituted a co+*ulsor3 counterclai+ '(ic( t(e3 s(ould (ave *leaded in t(eir ans'er filed in t(e aforesaid case. In 8erses vs. Villanueva& 25 P(il. 4:0& it 'as (eld t(at in an action for t(e recover3 of a *arcel of land& t(e defendant +ust set u* a counterclai+ for t(e value of i+*rove+ents +ade or introduced %3 (i+ on t(e *ro*ert3& ot(er'ise (is clai+ 'ould %e %arred. )(at t(is ruling a**lies to t(e *resent case can not %e dis*uted %ecause t(e onl3 difference %et'een %ot( cases is t(at in t(e one %efore us t(e counterclai+ is for rents for t(e occu*anc3 of t(e land soug(t to %e recovered and of t(e (ouse constructed t(ereon& instead of %eing Q as in t(e 8erses case Q for t(e recover3 of t(e value of i+*rove+ents +ade on t(e *ro*ert3 A**ellants& (o'ever& argue t(at even assu+ing t(at t(eir clai+ constituted a +andator3 counterclai+ in relation to Civil Case <o. /1/4& still t(e3 could not (ave *leaded it as suc( in said case %ecause it 'as not 'it(in t(e 4urisdiction of t(e Court of -irst Instance of "aguna '(ere t(e case 'as *ending. In

Prof. Victoria A.

4B

t(is connection t(e3 contend t(at t(eir counterclai+ against "uciano !analo and (is co *laintiffs 'ould (ave %een for unla'ful detainer and t(e collection of one +ont( rent onl3& %ecause '(en t(e action 'as co++enced !analo (ad %een in *ossession of t(e lot and (ouse involved t(erein onl3 for one +ont(. )(is is not entirel3 correct. )(e record on a**eal filed %3 !analo in t(e aforesaid ease s(o's t(at t(e defendants 5a**ellants (erein6 filed an ans'er in '(ic( t(e3 alleged t(at t(e3 'ere ,t(e true and la'ful o'ners of t(e *arcel of land, su%4ect +atter of t(e action %3 virtue of t(e deed of sale e7ecuted in t(eir favor %3 8eatriB !analo& u*on t(e registration of '(ic( a transfer certificate of title 'as issued in t(eir na+e. )(eir ans'er also inter*osed a counterclai+ '(ic( t(e3 incor*orated all t(e allegations +ade in t(eir ans'er and furt(er alleged t(at t(e *laintiffs (ad filed t(e action against t(e+ +aliciousl3& t(us causing t(e+ da+ages in t(e su+ of P2&000.00. Said ans'er *ra3ed not onl3 for t(e dis+issal of t(e co+*laint %ut also for 4udg+ent declaring said defendants as true and la'ful o'ners of t(e *ro*ert3 in 1uestion, 5#7(i%it C& **. 1? 206. It is o%vious t(erefore t(at& for all legal *ur*oses& a**ellants (ad& %3 'a3 of counterclai+& filed an accion reivindicatoria '(ic(& of course& necessaril3 included t(e 1uestion of *ossession. )(is not'it(standing& t(e3 failed to clai+ rents or co+*ensation for t(e use and occu*anc3 of t(e lot and (ouse su%4ect +atter of t(e co+*laint filed against t(e+. )(e rig(t to collect t(ese rents or reasona%le co+*ensation %eing +erel3 incidental to t(e counterclai+& it see+s clear t(at t(e fact t(at t(e a+ount t(ereof 'as less t(an t(e 4urisdictional a+ount for t(e Court of -irst Instance of "aguna did not de*rive said court of aut(orit3 to taAe cogniBance of t(e sa+e. "astl3& a**ellants contend t(at t(ere 'as a%solutel3 no +utualit3 of clai+s %ecause t(e *laintiffs in Civil Case <o. /1/4 'ere "uciano !analo and t(e (eirs of (is deceased 'ife& '(ereas t(e clai+ for rents in t(e *resent case is directed& 4ointl3 and severall3& against "uciano !analo& Pelagia Cailles Vda. de Inson and 8eronica Ca*areda. )(is is liAe'ise untena%le %ecause a *art3 +a3 not evade t(e effect of t(e doctrine of res 4udicata %3 si+*l3 including additional *arties& in t(e su%se1uent litigation or %3 not including as *arties in t(e latter *ersons '(o 'ere *arties in t(e *revious suit Disposition. Decision affir+ed

Civil Procedure Digest

CABAERO VS CANTOS /.R. N!. 3B9>:9 PAN/ANIBAN= Ap"i* 3;, 3>>2
NATURE Petition filed under Rule 95 assailing t(e Orders of res*ondent .udge for %eing contrar3 to la' and for (aving %een issued in e7cess of (is 4urisdiction and 'it( grave a%use of discretion tanta+ount to lacA of 4urisdiction. )(e Order of .ul3 1& 1//1& reads@ ,);# Ans'er 'it( Counterclai+ filed %3 t(e accused t(roug( counsel& dated -e%ruar3 12& 1//1& as 'ell as t(e O**osition t(ereto$ t(e !e+orandu+ filed %3 t(e Private Prosecutor& in Su**ort of !otion to #7*unge fro+ t(e Records AndEOr to Dis+iss Ans'er 'it( Counterclai+$ t(e Su**le+ent$ and Co++ent on Su**le+ent& are all ordered e7*unged fro+ t(e Records& considering t(at t(is is a cri+inal case '(erein t(e civil lia%ilit3 of t(e acused 5sic6 is i+*liedl3 instituted t(erein., Petitioners *leaded for reconsideration of said Order %ut res*ondent 4udge& in t(e Order of August 21& 1//1& denied t(eir +otion& t(us@ ,AC)I<= on t(e !otion for Reconsideration dated .ul3 1:& 1//1& of t(e accused t(roug( counsel& t(is Court finds no +erit t(erein& suc( t(at said +otion is (ere%3 denied., FACTS )(is *etition e+anated fro+ a cri+inal case in t(e R)C of !anila. Said case co++enced on Octo%er 1?& 1//0& 'it( t(e filing of an Infor+ation against *etitioners c(arging t(e+ 'it( estafa for allegedl3 defrauding *rivate res*ondent #*ifanio Ceralde of t(e su+ of P1&550&000.00. )(e accusator3 *ortion of t(e Infor+ation reads as follo's@ ,... t(e said accused induced and succeeded in inducing t(e said #PI-A<IO C#RA"D# to advance t(e total a+ount of P1&550&000.00 to %e *aid to !.C. Castro Construction& Co. re*resenting t(e *urc(ase *rice of 9 *arcels of land located in Pangasinan '(ic( t(e A1ualand Ventures N !anage+ent Cor*oration& a 4oint %usiness venture organiBed %3 accused A!ADO -. CA8A#RO and t(e said #PI-A<IO C#RA"D#& *urc(ased fro+ t(e said co+*an3& 'it( t(e understanding t(at t(e said a+ount 'ould %e returned to t(e said #PI-A<IO C#RA"D# as soon as t(e loan for P1&500&000.00 a**lied for %3 t(e said A1ualand Ventures N !anage+ent Cor*oration 'it( Solid 8anA& of '(ic( said accused A!ADO -.

A2010 Avena
CA8A#RO is t(e Senior Vice President& is released& %ut %ot( accused& once t(e said loan (ad %een a**roved %3 t(e %anA& in furt(erance of t(eir cons*irac3 and falsel3 *retending t(at accused CAR!#< C. P#R#S (ad %een aut(oriBed %3 t(e said A1ualand Ventures N !anage+ent Cor*oration to receive t(e c(ecA for P1&500&000.00 for and in its o'n %e(alf& succeeded in inducing t(e cas(ier of said Solid 8anA to release t(e sa+e to accused CAR!#< C. P#R#S& t(ere%3 ena%ling (er to encas( t(e aforesaid c(ecA& and instead of turning over t(e said a+ount to t(e said #PI-A<IO C#RA"D#$ accused failed and refused& and still fail and refuse& to do so des*ite re*eated de+ands +ade to t(at effect& and 'it( intent to defraud& +isa**ro*riated& +isa**lied and converted t(e said a+ount to t(eir o'n *ersonal use and %enefit...L *etitioners entered a *lea of not guilt3. Att3. A+%rosio 8lanco entered (is a**earance as *rivate *rosecutor. )(e Presiding .udge of t(e R)C of !anila& ;on. #lisa R. Israel& in(i%ited (erself ,out of delicadeBa, fro+ furt(er (earing t(e case ,considering t(at t(e co+*lainant is a relative %3 affinit3 of a ne*(e' of (er (us%and., )(ereafter& t(e case 'as re raffled to 8ranc( VII *resided over %3 res*ondent .udge Alfredo Cantos. On A*ril 2& 1//1& *etitioners filed an Ans'er 'it( Counterclai+ alleging t(at t(e +one3 loaned fro+ Solid%anA +entioned in t(e Infor+ation 'as dul3 a**lied to t(e *urc(ase of t(e 9 *arcels of land in Pangasinan& and t(at t(e filing of said Infor+ation 'as un4ustified and +alicious. Petitioners included t(e follo'ing *ra3er@ ,>;#R#-OR#& it is res*ectfull3 *ra3ed t(at after trial 4udg+ent %e rendered@ 1. Dis+issing& or 1uas(ing t(e infor+ation& and t(e civil action i+*liedl3 instituted in t(e cri+inal action$ 2. Ordering t(e co+*laining 'itness Ceralde to *a3 to t(e accused t(e follo'ing a+ounts@ 5a6 P1&500&000.00 as +oral da+ages$ 5%6 P500&000.00 as e7e+*lar3 da+ages$ 5c6 P100&000.00 as attorne3Ds fees$ and 5d6 P20&000.00& as litigation e7*enses. Accused *ra3 for suc( ot(er reliefs& legal and e1uita%le in t(e *re+ises., During t(e initial (earing on A*ril 15& 1//1& t(e *rosecution ver%all3 +oved t(at t(e ans'er 'it( counterclai+ %e e7*unged fro+ t(e records andEor %e dis+issed. )(e res*ondent 4udge gave t(e

Prof. Victoria A.

43

contending *arties ti+e to su%+it a !e+orandu+ and Co++ent or O**osition& res*ectivel3. )(e !e+orandu+ of t(e *rivate *rosecutor 4ustified (is !otion to #7*unge t(e ans'er 'it( counterclai+ for t'o reasons@ 516 t(e trial court (ad no 4urisdiction over t(e ans'er 'it( counterclai+ for non *a3+ent of t(e *rescri%ed docAet fees and 526 -e Ic!Dp,*#!"( c!,n e"c*%iD %+%in# c!Dp*%in%n i# 7%""e) &!" &%i*,"e ! &i*e i 7e&!"e %""%i+nDen .I - In t(eir O**osition& *etitioners argued t(at t(is Court in *avier vs. 4AC laid do'n& for ,*rocedural soundness&, t(e rule t(at a counterclai+ s(ould %e *er+itted in a cri+inal action '(ere t(e civil as*ect is not reserved. -urt(er& inas+uc( as *etitionersD counterclai+ 'as co+*ulsor3 in nature& t(e3 'ere not re1uired to *a3 docAet fees t(erefor. Additionall3& t(e Rules do not s*ecificall3 *rovide for t(e *eriod for filing of counterclai+s in cri+inal cases& '(ereas Section 0 of Rule / and Section / of Rule 9 allo' t(e filing& 'it( leave of court& of a counterclai+ at an3 ti+e %efore 4udg+ent. )(us& *etitioners contended t(at t(eir filing 'as 'it(in t(e *ro*er *eriod. res*ondent .udge Cantos granted t(e *rosecutionDs +otion to e7*unge and denied t(e *etitionersD +otion for reconsideration. Petitioners invoAe Section 1& Rule 111 of t(e Rules on Cri+inal Procedure. )(e3 contend t(at it is not onl3 a rig(t %ut an ,outrig(t dut3, of t(e accused to file an ans'er 'it( counterclai+ since failure to do so s(all result in t(e counterclai+ %eing forever %arred. Petitioners argue t(at under Rule 109 of t(e Rules of Court& *articularl3 Section ? t(ereof& clerAs of court are instructed to ,Aee* a general docAet& eac( *age of '(ic( s(all %e nu+%ered and *re*ared for receiving all t(e entries in a single case& and s(all enter t(erein all cases 7 7 7., )(us& res*ondent .udge Cantos allegedl3 erred in e7*unging all records 'it( res*ect to t(e Ans'er 'it( Counterclai+ for& on a**eal& ,if t(e records elevated 7 7 7 are inco+*lete and inaccurate& t(ere arises a grave danger t(at t(e ends of 4ustice and due *rocess s(all not %e served and instead frustrated., Petitioners furt(er allege t(at t(e Order failed to resolve t(e legal issues raised %3 t(e *arties as it neglected to state t(e legal %asis t(erefor ISSUE >O< t(e res*ondent 4udge co++itted grave a%use of discretion& a+ounting to lacA or e7cess of

Civil Procedure Digest

4urisdiction in ordering t(at t(e ans'er 'it( counterclai+ of t(e *etitioners in t(e cri+inal case& toget(er 'it( all *leadings filed in relation t(ereto& %e e7*unged fro+ t(e records. 5>O< t(e accused *etitioners '(o 'ere c(arged 'it( estafa +a3 file an ans'er 'it( counterclai+ for +oral and e7e+*lar3 da+ages *lus attorne3Ds fees and litigation e7*enses against t(e *rivate co+*lainant in t(e sa+e cri+inal action.6 Preli$inar% .atters "itis Pendentia as a Defense Private res*ondent %elatedl3 inter*oses litis *endentia to defeat t(e *etition alleges t(at t(e *resent *etition is %arred %3 t(e cross clai+ of t(e *etitioners against A1ualand Ventures and !anage+ent Cor*oration& of '(ic( *etitioners are stocA(olders and officers& in Civil Case <o. /0 50005 5filed against %ot( *etitioners and t(e *rivate res*ondent %3 Solid%anA6. - +C said? C!n#i)e"% i!n# !& ),e p"!ce## p"e'en ,# &"!D %8in+ ,p -e De"i # !& -i# %"+,Den in &%'!" !& p"i'% e "e#p!n)en . T-i# c"!##-c*%iD K%# ne'e" "%i#e) in -e "i%* c!," -- ce" %in*( n! in -e MeD!"%n),D )% e) Ap"i* 3>, 3>>3, #,7Di e) ! -e c!," % H,! in #,pp!" !& "e#p!n)en Ce"%*)eJ# D! i!n ! eCp,n+e -e %n#Ke" Ki - c!,n e"c*%iD. T-e R,*e# "eH,i"e -% I@%A D! i!n % %c8in+ % p*e%)in+ !" % p"!cee)in+ #-%** inc*,)e %** !7.ec i!n# -en %'%i*%7*e, %n) %** !7.ec i!n# n! #! inc*,)e) #-%** 7e )eeDe) K%i'e).I C!n#eH,en *( %n) ine*,c %7*(, -e +"!,n) !& *i i# pen)en i% K-ic- K%# n! %"+,e) in -e c!," % H,! i# )eeDe) K%i'e). The Pa%$ent of Filing Fees )(e Court agrees 'it( *etitioners t(at inas+uc( as t(e counterclai+ is co+*ulsor3& t(ere is no necessit3 to *a3 suc( fees& as t(e Rules do not re1uire t(e+ 5as clarified in Sun Insurance Office& "td. vs. Asuncion6. M%in I##,e HELD <O. 5<O6 As (eld in *avier# counterclai+ is co+*ulsor3 and is considered %arred if not set u* '(ere t(e follo'ing circu+stances are *resent@ 516 t(at it arises out of& or is necessaril3 connected 'it( t(e transaction or occurrence t(at is t(e su%4ect +atter of t(e o**osing *art3Ds clai+$ 526 t(at it does not re1uire for its

A2010 Avena
ad4udication t(e *resence of t(ird *arties of '(o+ t(e court cannot ac1uire 4urisdiction& and 506 t(at t(e court (as 4urisdiction to entertain t(e clai+. As categoricall3 recogniBed in t(e case of .avier& a clai+ for +alicious *rosecution or ,grossl3 unfounded suit, as a co+*ulsor3 counterclai+ (as no a**ro*riate venue ot(er t(an t(e sa+e cri+inal case '(ic( is alleged to %e a +alicious suit. )(e counterclai+ stands on t(e sa+e footing and is to %e tested %3 t(e sa+e rules as if it 'ere an inde*endent action. A counterclai+ is defined as an3 clai+ for +one3 or ot(er relief '(ic( a defending *art3 +a3 (ave against an o**osing *art3. Co+*ulsor3 counterclai+ is one '(ic( at t(e ti+e of suit arises out of& or is necessaril3 connected 'it(& t(e sa+e transaction or occurrence t(at is t(e su%4ect +atter of *laintiffDs co+*laint. It is co+*ulsor3 in t(e sense t(at if it is 'it(in t(e 4urisdiction of t(e court& and does not re1uire for its ad4udication t(e *resence of t(ird *arties over '(o+ t(e court cannot ac1uire 4urisdiction& it +ust %e set u* t(erein& and 'ill %e %arred in t(e future if not set u*. In 4ustif3ing (is Order& .udge Cantos ruled t(at ,t(is is a cri+inal case '(erein t(e civil lia%ilit3 of t(e accused is i+*liedl3 instituted t(erein., )(is 4ustification %egs t(e 1uestion. 8asicall3& t(at is t(e reason '(3 *etitioners (erein filed t(eir ans'er 'it( counterclai+ for& a**arentl3& in (iring a *rivate *rosecutor& Ceralde intended to *rosecute (is civil clai+ toget(er 'it( t(e cri+inal action. ;ence& as a *rotective +easure& *etitioners filed t(eir counterclai+ in t(e sa+e case. Since under Section 1 Rule 111& t(e civil action '(ic( is dee+ed i+*liedl3 instituted 'it( t(e cri+inal action& if not 'aived or reserved& includes recover3 of inde+nit3 under t(e RPC& and da+ages under Art.02& 00& 04 and 21:9 of t(e Civil Code arising fro+ t(e sa+e act or o+ission of t(e accused& s(ould not t(e accused (ave t(e rig(t to file a counterclai+ in t(e cri+inal caseQ O%viousl3& t(e ans'er is in t(e affir+ative& as 'as (eld in .avier. +o$e Reservations in the !pplication of Javier )(e logic and cogenc3 of .avier not'it(standing& so+e reservations and concerns 'ere voiced out %3 +e+%ers of t(e Court during t(e deli%erations on t(e *resent case. )(ese 'ere engendered %3 t(e o%vious lacuna in t(e Rules of Court& '(ic( contains no e7*ress *rovision for t(e ad4udication of a counterclai+ in a civil action i+*liedl3 instituted in a cri+inal case. )(e follo'ing *ro%le+s 'ere noted@ 16 >(ile t(e rules on civil *rocedure e7*ressl3 recogniBe a defendantDs entitle+ent to *lead (is

Prof. Victoria A.

49

counterclai+ and offer evidence in su**ort t(ereof& t(e rules on cri+inal *rocedure '(ic( aut(oriBe t(e i+*lied institution of a civil action in a cri+inal case are& in contrast& silent on t(is *oint and do not *rovide s*ecific guidelines on (o' suc( counterclai+ s(all %e *ursued. 26 A 4udg+ent in a cri+inal action is not re1uired to *rovide for t(e a'ard of a counterclai+. 06 Allo'ing and (earing counterclai+s 5and *ossi%l3 cross clai+s and t(ird *art3 co+*laints6 in a cri+inal action 'ill surel3 dela3 t(e said action. )(e *ri+ar3 issue in a cri+inal *rosecution t(at is under t(e control of state *rosecutors is t(e guilt of t(e accused and (is civil lia%ilit3 arising fro+ t(e sa+e act or o+ission. #7tending t(e civil action arising fro+ t(e sa+e act or o+ission to counterclai+s& cross clai+s and t(ird *art3 co+*laints& and allo'ing t(e accused and ot(er *arties to su%+it evidence of t(eir res*ective clai+s 'ill co+*licate t(e dis*osition of t(e cri+inal case. 46 Ad4udication of co+*ulsor3 counterclai+s andEor related clai+s or *leadings logicall3 includes t(e a**lication of ot(er rules '(ic(& %3 t(eir ver3 nature& a**l3 onl3 to civil actions. )(e follo'ing +atters +a3 %e invoAed in connection 'it( t(e filing of an ans'er 'it( a counterclai+@ t(e genuineness and due e7ecution of an actiona%le docu+ent '(ic( are dee+ed ad+itted unless s*ecificall3 denied under oat($ affir+ative defenses liAe res 4udicata& *rescri*tion and statute of frauds '(ic( are dee+ed 'aived %3 failure to inter*ose t(e+ as affir+ative defenses in an ans'er$ and t(e failure of a defendant to file an ans'er seasona%l3 +a3 result in (is default in t(e civil as*ect %ut not in t(e cri+inal. As a conse1uence of t(ese +atters& t(e entr3 of *lea during arraign+ent 'ill no longer signal 4oinder of issues in a cri+inal action. 56 In an i+*liedl3 instituted civil action& an accused is not sufficientl3 a**rised of t(e s*ecific %asis of t(e clai+s against (i+. An accused learns of t(e i+*lied institution of a civil action fro+ t(e contents of an infor+ation. An infor+ation& (o'ever& is filed in %e(alf of t(e Peo*le of t(e P(ili**ines. ;ence& it does not contain t(e ulti+ate facts relating to t(e civil lia%ilit3 of t(e accused. 96 8ecause an accused is not sufficientl3 a**rised of t(e s*ecific %asis of t(e civil action against (i+& (e +a3 file a +otion for %ill of *articulars or taAe advantage of discover3 *rocedures. )(e end result& in an3 case& 'ill %e dela3 and co+*lication in t(e cri+inal action and even confusion a+ong t(e *arties.

Civil Procedure Digest

:6 )(e Rules of Court does not s*ecif3 t(e recAoning date for t(e filing of an ans'er in an i+*liedl3 instituted civil action. ?6 An accused can file (is ans'er 'it( counterclai+ onl3 after t(e initial (earing& %ecause t(e *rivate co+*lainant +a3 still reserve (is civil action at an3 ti+e %efore t(e *rosecution co++ences to *resent evidence. On t(e ot(er (and& an ans'er in an ordinar3 civil action s(ould %e filed %efore t(e start of (earing& %ecause (earing co++ences onl3 after t(e issues (ave %een 4oined& i.e.& after t(e res*onsive *leadings (ave %een filed. /6 Confusion in t(e a**lication of t(e rules on civil *rocedure 'ill certainl3 encourage litigants to c(allenge %efore a**ellate courts interlocutor3 incidents of t(e i+*liedl3 instituted civil action. 106 So+e +e+%ers of t(e Court %elieve t(at a cause of action for +alicious *rosecution +a3 %e *re+ature %ecause t(ere is as 3et no finding of suc( 'rongful *rosecution. )(is fact is *recisel3 '(at t(e trial court still (as to deter+ine. --B( -e &!"e+!in+ )i#c,##i!n, Ke )! n! iDp*( %n( &%,* in J%'ie". T-e "e%* p"!7*eD *ie# in -e %7#ence !& c*e%"-c, ",*e# +!'e"nin+ -e p"!#ec, i!n !& iDp*ie)*( in# i , e) ci'i* %c i!n# %n) -e nece##%"( c!n#eH,ence# %n) iDp*ic% i!n# -e"e!&. F!" -i# "e%#!n, -e c!,n e"-c*%iD !& -e %cc,#e) c%nn! 7e "ie) !+e -e" Ki - -e c"iDin%* c%#e 7ec%,#e, %# %*"e%)( )i#c,##e), i Ki** ,nnece##%"i*( c!Dp*ic% e %n) c!n&,#e -e c"iDin%* p"!cee)in+#. T-,#, -e "i%* c!," #-!,*) c!n&ine i #e*& ! -e c"iDin%* %#pec %n) -e p!##i7*e ci'i* *i%7i*i ( !& -e %cc,#e) %"i#in+ !, !& -e c"iDe. T-e c!,n e"-c*%iD @%n) c"!##c*%iD !" -i") p%" ( c!Dp*%in , i& %n(A #-!,*) 7e #e %#i)e !" "e&,#e) c!+ni<%nce Ki -!, p"e.,)ice ! -ei" &i*in+ in #ep%"% e p"!cee)in+# % -e p"!pe" iDe. A 7%*%nce, ,n i* -e"e %"e )e&ini i'e ",*e# !& p"!ce),"e ! +!'e"n -e in# i , i!n, p"!#ec, i!n %n) "e#!*, i!n !& -e ci'i* %#pec @%n) -e c!n#eH,ence# %n) iDp*ic% i!n# -e"e!&A iDp*ie)*( in# i , e) in % c"iDin%* c%#e, "i%* c!," # #-!,*) *iDi -ei" .,"i#)ic i!n ! -e ci'i* *i%7i*i ( !& -e %cc,#e) %"i#in+ &"!D -e c"iDin%* c%#e. Disposition >;#R#-OR#& *re+ises considered& t(e 1uestioned Orders are (ere%3 !ODI-I#D. )(e counterclai+ of t(e accused is (ere%3 set aside 'it(out *re4udice. )(e Res*ondent R)C of !anila is DIR#C)#D to *roceed 'it( t(e trial of t(e cri+inal

A2010 Avena
action and t(e civil action arising fro+ t(e cri+inal offense t(at is i+*liedl3 instituted t(erein& 'it( all 4udicious dis*atc(.

Prof. Victoria A.

41

CHAN V CA @CUA /.R. 3B>B9B DAVIDE= MARCH 1, 3>>:

NATURE Revie' on certiorari FACTS On -e%.1& 1/?0& *etitioner -elisa C(an and *rivate res*ondent =race Cu& entered into a contract of lease& t(e ter+s of '(ic( 'ere@ OOCu 'ill occu*3 Roo+ 401 and roofto* of Roo+ 442 of a %ldg in Ir%iBtondo o'ned %3 C(an. OO)er+ of lease is 1 3ear at a +ont(l3 rental of P2&400. OO)(e *re+ises s(all %e used as a learning center. )(e contract 'as rene'ed for t(e succeeding 2 3ears or u* to -e%.1& 1/?9& after '(ic( date& no 'ritten contract of lease 'as e7ecuted alt(oug( Cu continued to occu*3 t(e *re+ises. Increasing ever3 3ear& t(e +ont(l3 eventuall3 ca+e to P0& 4?4.?0 in .an. 1/?/. <ov. 1/?/@ C(an locAed t(e 'a3 to t(e roofto*. In t(e ensuing e7c(ange of co++unication& Cu insisted t(at s(e %e allo'ed to use t(e roofto* of R+.442& '(ile C(an +aintained t(at onl3 R+.401 'as leased and t(at t(e use of t(e roofto* 'as +erel3 tolerated& adding t(at t(e use of t(e roofto* *osed danger to t(e students. C(an eventuall3 ter+inated t(e lease& refused to collect t(e rental for Dec.1/?/ 5turned do'n a c(ecA tendered %3 Cu6 and gave Cu onl3 until .an.1//0 to vacate t(e *re+ises. Cu2s la'3er tendered t(e *a3+ent in cas( 'it( notice to C(an t(at in case of non acce*tance& t(e sa+e 'ill %e de*osited in court %3 'a3 of consignation. At t(is *oint& C(an gave Cu u* to !arc(& 1//0 .an.15& 1//0@ Cu filed a civil case for consignation 'it( t(e !)C. C(an ans'ered 'it( a counterclai+ for e4ect+ent. )(e !)C2s decision@ OOdeclared t(at t(e roofto* is included in t(e lease OOfi7ed t(e ter+ of t(e lease until .une 00& 1//2 OO(eld valid and legal t(e consignation %3 Cu - 8ot( *arties a**ealed to t(e R)C. Cu +aintained t(at t(e !)C s(ould (ave fi7ed a longer *eriod '(ile

C(an contended t(at t(e !)C erred in e7tending t(e ter+ of t(e lease and in u*(olding t(e validit3 of t(e consignation. R)C later affir+ed t(e !)C. Cu t(en 'ent to t(e CA on *etition for revie'& 'it( t(e sa+e allegation t(at t(at t(e R)C erred in not fi7ing a longer *eriod of e7tension of t(e lease. )(e CA reversed and set aside t(e decisions of t(e !)C and R)C and dis+issed& for lacA of +erit& t(e co+*laint for consignation. )(e CA (eld t(at C(an (ad 4ustifia%le cause 5Cu2s oversta36 to refuse to acce*t t(e *a3+ent. It ruled t(at t(e !)C and R)C erred in *assing u*on t(e issue of e4ect+ent raised in C(an2s counterclai+ since an action for e4ect+ent can onl3 %e initiated t(roug( a verified co+*laint& not a counterclai+. C(an2s !-R 'as denied %3 t(e CA and so s(e filed t(is instant *etition. ISSUE >O< C(an2s action for e4ect+ent set u* in a counterclai+ 'as *ro*er HELD C#S. Reasoning Sec.:& Rule 9 of t(e Rules of Court *rovides t(at t(e ans'er +a3 contain an3 counterclai+ '(ic( a *art3 +a3 (ave against t(e o**osing *art3 *rovided t(at t(e court (as 4urisdiction to entertain t(e clai+ and can& if t(e *resence of t(ird *arties is essential for its ad4udication& ac1uire 4urisdiction of suc( *arties. Inder Sec. 2 of Rule /& a counterclai+ not set u* s(all %e %arred if it arises out of or is necessaril3 connected 'it( t(e transaction or occurrence t(at is t(e su%4ect +atter of t(e o**osing *art3Ds clai+ and does not re1uire for its ad4udication t(e *resence of t(ird *arties of '(o+ t(e court cannot ac1uire 4urisdiction. A counterclai+ +a3 %e co+*ulsor3 or *er+issive. C(anDs counterclai+ for e4ect+ent is a co+*ulsor3 counterclai+ %ecause it is necessaril3 connected 'it( t(e transaction or occurrence '(ic( is t(e su%4ect +atter of CuDs co+*laint& viB.& t(e lease contract %et'een t(e+. Conse1uentl3& t(e CA erred '(en it (eld t(at C(anDs cause of action for e4ect+ent could not %e set u* in a counterclai+. )(e case of C(ing Pue vs. =onBales is ina**lica%le %ecause in C(ing Pue t(e consignation cases 'ere filed 'it( t(e C-I '(ic( did not (ave 4urisdiction over e4ect+ent cases$ necessaril3& no counterclai+ for e4ect+ent could (ave %een inter*osed t(erein. )(e ratio of t(e said case is t(at consignation is not *ro*er '(ere t(e refusal of t(e creditor to acce*t

Civil Procedure Digest

tender of *a3+ent is 'it( 4ust cause. In t(e instant case& t(e e4ect+ent 'as set u* as a counterclai+ in t(e !)C '(ic( (as 4urisdiction over it and Cu 4oined t(at issue and t(e incidents t(ereto %3 (er ans'er to t(e counterclai+& and t(e counterclai+ to t(e counterclai+. )(e CA t(erefore s(ould (ave confined itself to t(e *rinci*al error raised in CuDs *etition in 5t(e duration of t(e e7tended ter+ of t(e lease fi7ed in t(e decision of t(e !)C and affir+ed %3 t(e R)C6. As fi7ed& t(e ter+ of t(e lease 'as e7tended to .une 00& 1//2. )(at *eriod (ad e7*ired si7 +ont(s %efore t(e CA *ro+ulgated its c(allenged decision. Considering t(at C(an did not file an3 *etition for t(e revie' of t(e R)C decision and 'as& t(erefore& dee+ed to (ave agreed to t(e e7tension$ and considering furt(er t(at Cu did not co+e to us on a *etition for revie' to seeA reversal of t(e decision t(erein and s(ould t(us %e considered to (ave agreed to t(e dis+issal of (er consignation case& t(e *arties +ust %e dee+ed %ound %3 t(e e7tended ter+& '(ic( (as& nevert(eless& alread3 la*sed. >>On Counterclai$s A counterclai+ is an3 clai+ for +one3 or ot(er relief '(ic( a defending *art3 +a3 (ave against an o**osing *art3. It need not di+inis( or defeat t(e recover3 soug(t %3 t(e o**osing *art3& %ut +a3 clai+ relief e7ceeding in a+ount or different in Aind fro+ t(at soug(t %3 t(e o**osing *art3Ds clai+. Counterclai+s are designed to ena%le t(e dis*osition of a '(ole controvers3 of interested *arties conflicling clai+s& at one ti+e and in one action& *rovided all t(e *arties can %e %roug(t %efore t(e court and t(e +atter decided 'it(out *re4udicing t(e rig(ts of an3 *art3. A counterclai+ ,is in itself a distinct and inde*endent cause of action& so t(at '(en *ro*erl3 stated as suc(& t(e defendant %eco+es& in res*ect to t(e +atter stated %3 (i+& an actor& and t(ere are t'o si+ultaneous actions *ending %et'een t(e sa+e *arties& '(erein eac( is at t(e sa+e ti+e %ot( a *laintiff and a defendant . . . . A counterclai+ stands on t(e sa+e footing and is to %e tested %3 t(e sa+e rules& as if it 'ere an inde*endent action. In s(ort& t(e defendant is a *laintiff 'it( res*ect to (is counterclai+. Disposition *etition =RA<)#D. CA decision S#) ASID#.

A2010 Avena
/OJO V /OYALA P%+e 95 FACTS
allegedl3 a *acto de retro sale 5t(e ot(er *art3 alleged it 'as a +ortgage6& =o4o t(e %u3er alleged t(at t(e *eriod for rede+*tion (as alread3 la*sed so (e filed a *etition for consolidation of o'ners(i*. =o3ala2s& t(e %u3ers '(o 'ere alleging t(at t(e3 (ad o%tained a cas( loan fro+ =o4o and t(e land allegedl3 sold to =o4o 'as onl3 a securit3 to t(e loan& and t(at t(e3 tried to *a3 t(eir de%t to =o4o %ut =o4o refused. =o3ala2s filed a counterclai+ for =o4o to receive t(e a+ount due& for t(e docu+ent to %e declared a +ortgage and not a *acto de retro sale& for P1?00 *er annu+ for t(e fruits of said *ro*ert3 and t(at& if ever t(e docu+ent %e dee+ed a *acto de retro sale& for =o4o to %e ordered to e7ecute a deed of resale in favor of t(e =o3alas. =o3ala2s s*ouse died& )C ordered =o4o to a+end t(e Co+*laint to su%stitute t(e s*ouse 'it( one of (er successors in interest as *art3. <ot'it(standing t(e la*se of 40 da3s after recei*t of co*3 of )C order& =o4o allegedl3 failed to su%+it t(e a+ended co+*laint so =o3ala filed a +otion to dis+iss t(e *etition. )C dis+issed co+*laint& =o4o 'as also declared in default in re =o3ala2s counterclai+. )C ruled in favor of =o3ala. A**ellant a**ealed to t(e CA& '(ic( u*on finding t(at t(e said a**eal involves *urel3 1uestions of la'& certified t(e sa+e to t(e SC.

Prof. Victoria A.

4:

ON DEFENSES R,*e ;, %**e+% i!n# )eeDe) %)Di e) TEC BI P CO ' CHARTERED BANF OF INDIA, AUSTRALIA AND CHINA :3 P-i* 4>5 CARSON= Fe7 4, 3>35
FACTS? on t(e :t( of <ove+%er 1/12& t(e *laintiff sold to t(e ,"a Irania Cigar -actor3 5"td.6&, a 1uantit3 of leaf to%acco. on 19t( .anuar3& 1/10& t(e ,"a Irania Cigar -actor3 5"td.6&, *ledged to t(e defendant cor*oration as securit3 for t(e *a3+ent of an inde%tedness of

T-e An#Ke" De&en#e#

P25&000 t(e %ales of to%acco. )(e %ales of to%acco t(us *ledged 'ere stored in t(e %odega of a t(ird *erson& !essrs. S*rungli N Co.& situated at <o. 42 5no' <o. 2146 of Calle David& !anila. on or a%out t(e 1st da3 of -e%ruar3& 1/10& t(e defendant cor*oration de+anded and o%tained fro+ !essrs. S*rungli N Co. t(e Ae3s to t(e said %odega& and discovered t(at of t(e 409 %ales of to%acco t(ere re+ained onl3 t(ose set fort( in *aragra*( 4 of t(e ans'er. 5I (ave no idea (o' +an3. Sorr3.6 t(e defendant %anA did not Ano' and (ad %een una%le to ascertain '(et(er ,"a Irania Cigar -actor3 5"td.6&, +isre*resented t(e 1uantit3 of t(e to%acco in t(e said 'are(ouse at t(e ti+e of t(e e7ecution of said docu+ent of *ledge& or '(et(er t(e difference %et'een t(e a+ount descri%ed in t(e docu+ent of *ledge and t(at found on (and on t(e 1st of -e%ruar3& 1/10& and in t(e +eanti+e %een dis*osed of %3 ,"a Irania Cigar -actor3 5"td.6&, in collusion 'it( !essrs. S*rungli N Co.& %ut t(at if suc( dis*osition 'as +ade it 'as 'it(out t(e Ano'ledge or consent of t(e defendant %anA. fro+ said 1st da3 of -e%ruar3& 1/10& t(e defendant cor*oration (ad %een in t(e a%solute and e7clusive *ossession of t(e to%acco& until t(e 15t( of !a3& 1/10& '(en sa+e 'as sold under and %3 virtue of t(e docu+ent of *ledge %3 t(e defendant %anA for t(e su+ of P12&:22.09 '(ic( 'as a**lied on account of said loan& t(e entire a+ount of '(ic( 'as t(en *ast due and un*aid& leaving a large %alance t(ereof still due and un*aid. on t(e 22nd da3 of A*ril& 1/10& t(e *laintiff )ec 8i N Co.& filed a co+*laint in t(e Court of -irst Instance of !anila against ,"a Irania Cigar -actor3 5"td.6&, clai+ing t(e *a3+ent of t(e su+ of P11&5:2./9 as t(e %alance of t(e un*aid *urc(ase *rice of t(e to%acco on t(e 5t( da3 of !a3& 1/10& )ec 8i N Co. asAed for and o%tained fro+ t(e Court of -irst Instance an attac(+ent against t(e said %ales of to%acco& %ut inas+uc( as t(e %odega 'as locAed and t(e s(eriff 'as infor+ed t(at t(e Ae3s 'ere in t(e *ossession of t(e %anA& (e de+anded t(e deliver3 t(ereof fro+ t(e latter& '(ic( de+and 'as refused %3 t(e %anA& alleging t(at it (eld *ossession of t(e to%acco under a *ledge. t(e s(eriff notified it t(at t(e %ales of to%acco 'ere attac(ed su%4ect to t(e results of t(e co+*laint filed %3 )ec 8i N Co. against ,"a Irania Cigar -actor3 5"td.6&L on ?t( da3 of !a3& 1/10& t(e %anA ans'ered t(e notification of t(e s(eriff& confir+ing t(e fact t(at it

Civil Procedure Digest

(ad in its *ossession t(e %ales of to%acco s*ecified in t(e notification& as securit3 for t(e *a3+ent of a loan and t(at it intended to sell t(e sa+e$ t(at t(e s(eriff co++unicated t(e ans'er of t(e %anA to t(e attorne3s to )ec 8i N Co.& '(o re*lied insisting u*on t(e lev3 of t(e attac(+ent. on t(e 1/t( da3 of !a3& 1/10& t(e Court of -irst Instance rendered 4udg+ent in said case against ,"a Irania Cigar -actor3 5"td.6&, in favor of )ec 8i N Co.& for t(e su+ of P11&5:2./9& 'it( legal interest fro+ A*ril 22& 1/10& and costs. on t(e 22d da3 of !a3& 1/10& t(e s(eriff atte+*ted to e7ecute t(e 4udg+ent u*on t(e %ales of to%acco attac(ed and in t(e *ossession of t(e defendant cor*oration& %ut 'as una%le to do so due to t(e state+ent of t(e agent of said cor*oration& t(at t(e to%acco (ad %een sold and t(at t(e *roceeds of t(e sale (ad %een a**lied u*on t(e *a3+ent of t(e a+ount due to fro+ ,"a Irania Cigar -actor3 5"td.6&, Court of -irst Instance found t(at t(e *laintiffDs clai+ 'as a *referred credit under t(e *rovisions of *aragra*( 1 of article 1/22 of t(e Civil Code$ t(at t(e *ledge e7ecuted %3 ,"a Irania Cigar -actor3 5"td.6&, in favor of t(e defendant cor*oration 'as not %inding u*on t(e *laintiff for t(e reason t(at it 'as not set fort( in a *u%lic instru+ent as re1uired %3 article 1?95 of t(e Civil Code in order to %e effective against& t(ird *erson& and rendered 4udg+ent in favor of t(e *laintiff and against t(e defendant for t(e a+ount of t(e for+erDs 4udg+ent against ,"a Irania Cigar -actor3 5"td.6&, 'it( interest and costs. ISSUE? >O< t(e court erred in (olding t(at t(e *laintiff did not 'aive an3 defect in t(e *rivate instru+ent of *ledge %3 e7*ressl3 ad+itting its genuineness and t(e correctness of its date %3 sti*ulation& and %3 failure to o%4ect to its introduction in evidence. -OT,; the case dealt $ith a pledgor.pledgee 8credit9 relationship. +he discussion here is limited to that pertaining to civil provision. Please see case re issues on credit. HELD? A general ad+ission of t(e trut( of t(e allegations set fort( in a *leading is not an ad+ission of t(e trut( of an i+*ossi%le conclusion of fact dra'n fro+ ot(er facts set out in t(e *leading& nor of a 'rong conclusion of la' %ased on t(e allegations of fact 'ell *leaded& nor of t(e trut( of a general aver+ent of facts contradicted %3 +ore s*ecific aver+ents. )(us& if a *leader alleges t(at t'o *esos 'ere

A2010 Avena
%orro'ed on one da3 and t'o +ore %orro'ed on anot(er +aAing five Pin all& a sti*ulation of t(e trut( of t(e allegations in t(e *leading does not a+ount to an ad+ission %3 t(e o**osing *art3 t(at t'ice t'o +aAe five. Again if a *leader alleges t(at one (undred *esos 'ere loaned 'it(out interest for one 3ear and (ad not %een *aid& and t(at t(e %orro'er is inde%ted to t(e lender in t(e su+ of one (undred and ten *esos& t(at %eing t(e a+ount of t(e ca*ital toget(er 'it( interest for t(e 3ear for '(ic( t(e +one3 'as loaned& a sti*ulation as to t(e trut( of t(e allegation set fort( in t(e *leadings is not an ad+ission of t(e trut( of t(e conclusion of la' as to t(e interest due %3 t(e %orro'er. )(ese ele+entar3 *rinci*les (ave %een 1uite full3 develo*ed in a great variet3 of cases arising on de+urrers& and sufficientl3 dis*ose of t(e atte+*t of counsel to fi7 t(e attention of t(e court u*on t(is single aver+ent of t(e ans'er& a*art fro+ t(e conte7t and to t(e e7clusion of t(e s*ecific allegations of fact& t(e trut( of '(ic(& as sti*ulated %3 t(e *arties& cannot %e 1uestioned. DISPOSITION? .udg+ent affir+ed

Prof. Victoria A.
*aragra*( 1 insofar as its *ersonalit3 is concerned ut is $"o sufficient information to form a elief as to the truth of the rest of the allegations. 2. )(at defendant is $"o sufficient 'no$ledge or information to form a elief as to the truth# correctness or accurac! of the allegations set fort( in *aragra*(s 2 to 9 of *laintiffs co+*laint.,

44

PAC filed a +otion for 4udg+ent on t(e *leadings as t(e ans'er failed to tender an issue or ,ot(er'ise ad+its t(e +aterial allegations of t(e co+*laintL. SIP did not o**ose to t(is +otion. .udge Revilla denied t(e +otion and set t(e case for *re trial. )(en t(e case 'as set for trial on t(e +erits. PAC *resented its case and filed +e+oranda sa3ing t(at SIP2s ans'er failed to tender an issue as said *art3 ,could not (ave denied Ano'ledge of t(e account in t(e face of its 'ritten ad+issions&, (ence& 4udg+ent on t(e *leadings 'as *ro*er. SIP *resented its case and filed +e+oranda sa3ing t(at under Sec i!n 3B, R,*e ; of t(e Rules of Court& its ans'er (ad sufficientl3 denied t(e allegations of t(e co+*laint and *laced t(e+ in issue& so t(at it %eca+e incu+%ent u*on *etitioner to *rove its allegationsX $ and t(at a denial for ,lacA of sufficient Ano'ledge or infor+ation to for+ a %elief as to t(e trut(, of t(e aver+ents of t(e co+*laint is a s*ecific denial and as suc( *laces in issue t(e allegations of t(e co+*laint so denied. TC declared t(at said ans'er reall3 failed to tender an3 issue and t(at t(e clai+s alleged in t(e co+*laint are& t(erefore& dee+ed ad+itted. )C ordered SIP to *a3 PAC t(e su+ of P?/&100.00 'it( legal interest& attorne3Ds fees& and t(e costs of suit. SIP filed +otion for reconsideration. PAC filed an o**osition to t(e !-R on t(e grounds t(at t(e decision 'as in accordance 'it( la' and t(e evidence. .udge Revilla granted !-R ,in t(e interest of 4usticeL and set t(e case for (earing on t(e +erits. PAC filed an o+ni%us +otion for reconsideration and for e7ecution& contending t(at t(e !-R %eing *ro for+a& did not interru*t t(e running of t(e *eriod for a**eal& and since SIP received notice of

PHIL ADVERTISIN/ COUNSELORS V. CA, HON. PEDRO REVILLA, SOUTHERN INDUSTRIAL PROJECTS /RN L 13;5> ANTONIO= AU/ ; 3>21
NATURE A**eal fro+ t(e decision of t(e CA FACTS Sout(ern Industrial Pro4ects 5SIP6 (ired P(ili**ine Advertising Counselors 5PAC6 to *ro+ote SIP2s *roducts. SIP accu+ulated un*aid accounts. PAC filed co+*laint. Attac(ed 'E t(e co+*laint 'ere t'o letters 5Anne7ed AN86 fro+ SIP2s la'3er& sa3ing t(at it 'ould not %e *ossi%le for SIP to settle in full its account of P/:&/52 0? in one *a3+ent and suggested t(at it 5SIP6 %e allo'ed to settle its account %3 ,*eriodic a+ortiBation,$ and t(at SIP (ad included PAC in its list of creditors ,to '(o+ *a3+ents are regularl3 sc(eduled., - SIP filed ans'er stating@ 1. )(at it ad+its t(e allegations in

Civil Procedure Digest

t(e decision& t(e 4udg+ent %eca+e final and e7ecutor3& and conse1uentl3 it could no longer %e +odified& or set aside. .udge Revilla denied t(e o+ni%us +otion. PAC filed *etition for certiorari& *ro(i%ition and +anda+us& 'E *ra3er for *reli+inar3 in4unction 'E t(e CA& '(ic( gave due course to t(e *etition and issued a 'rit of *reli+inar3 in4unction. CA later dis+issed t(e *etition and dissolved t(e 'rit of *reli+inar3 in4unction. CA said t(at *rivate res*ondent could do no +ore t(an clai+ in its +otion for reconsideration t(at t(e 4udg+ent of t(e trial court 'as contrar3 to Rule ?& Section 10& of t(e Rules of Court ISSUE @&!" -i# !picA 1. >O< res*ondent2s ans'er constitute 5allegation not dee+ed ad+itted6 denial

A2010 Avena
sent to *etitioner %3 t(e counsel of *rivate res*ondent 'ere not aut(oriBed %3 t(e latter. )(ere 'as t(us a failure on *rivate res*ondentDs *art to den3 t(e +aterial aver+ents of t(e co+*laint. Conse1uentl3& t(e sa+e& including t(e contents of Anne7es ,A, and ,8,& '(ic( for+ed *art of t(e co+*laint& and in '(ic( t(e e7istence and validit3 of *etitionerDs clai+ 'ere une1uivocall3 conceded& +ust %e dee+ed to (ave %een ad+itted. Alt(oug( sanctioned %3 t(e rules& t(e for+ of denial ado*ted %3 *rivate res*ondent +ust %e availed of in good fait( and 'it( sincerit3 and not resorted to +erel3 for t(e *ur*ose of dela3 or to confuse t(e adverse *art3 as to '(at aver+ents in t(e co+*laint are actuall3 *ut in issue. Disposition A**ealed 4udg+ent reversed and set aside& and Sout(ern Industrial Pro4ects& Inc. to *a3 P(ili**ine Advertising Counselors& Inc. t(e a+ount of P?/&100.00& 'it( legal interest until full3 *aid& *lus 10J of t(e *rinci*al a+ount due %3 'a3 of attorne3Ds fees& and costs.

Prof. Victoria A.

45

HELD 1 <O )(e rule aut(oriBing an ans'er to t(e effect t(at t(e defendant (as no Ano'ledge or infor+ation sufficient to for+ a %elief as to t(e trut( of an aver+ent and giving suc( ans'er t(e effect of a denial& )!e# n! %pp*( K-e"e -e &%c %# ! K-ic- K%n !& 8n!K*e)+e i# %##e" e) i# #! p*%in*( %n) nece##%"i*( Ki -in -e )e&en)%n J# 8n!K*e)+e -% -i# %'e"Den !& i+n!"%nce D,# 7e p%*p%7*( ,n ",e 5as (eld in Ca*itol !otors Cor*oration v. Ca%ut6 ,an une7*lained denial of infor+ation and %elief of a +atter of records& t(e +eans of infor+ation concerning '(ic( are 'it(in t(e control of t(e *leader& or are readil3 accessi%le to (i+& is evasive and is insufficient to constitute an effective denial., Reasoning; )(e rule t(at a +ere allegation of ignorance of t(e facts alleged in t(e co+*laint is insufficient to raise an issue& for t(e defendant +ust aver *ositivel3 or state (o' it is t(at (e is ignorant of t(e facts so alleged& +ust %e a**lied in t(is case& for *etitionerDs co+*laint e7*licitl3 averred t(at t(e letters 5Anne7AN86 'ere 'ritten %3 *rivate res*ondent& al%eit t(ru its la'3er. >(et(er or not t(e said aver+ents in t(e co+*laint 'ere true& could not conceiva%l3 %e unAno'n to *rivate res*ondent. As a +atter of fact it (as never %een denied %3 *rivate res*ondent t(at it 'as inde%ted to *etitione. It (as not %een asserted t(at t(e letters attac(ed as Anne7es ,A, and ,8, to t(e co+*laint '(ic( 'ere

LIAM LAW V OLYMPIC SAWMILL 39> SCRA :1> MELENCIO-HERRERA= M%( 9;, 3>;:
NATURE A**eal fro+ a Decision rendered %3 t(e Court of -irst Instance of 8ulacan FACTS "a' loaned P10&000 to Ol3+*ic Sa'+ill 'it(out interest. )(e loan %eca+e due on .anuar3 01& 1/90 %ut 'as not *aid on t(at date. )(e de%tors asAed for an e7tension of 0 +ont(s 5A*ril 00& 1/906. !arc( 1:& 1/90 M Anot(er loan docu+ent 'as dra'n u* '(erein t(e o%ligation 'as increased %3 P9&000 5to ans'er or attorne32s fees& legal interest and ot(er costs6. Defendants failed to *a3 t(eir dues %3 A*ril and '(en a action 'as instituted against t(e+ %3 "a' in Se*te+%er& t(e3 clai+ed t(at t(e additional interest as usurious. A 'rit of attac(+ent 'as t(en e7ecuted on real and *ersonal *ro*erties of t(e defendant. )C@ ordered Ol3+*ic Sa'+ill to *a3 "ia+ "a' P10&000 *lus t(e P9&000 interest. ISSUE >O< t(e decision of t(e trial court 'as correct

HELD C#S Ratio Sec. / of t(e Isur3 "a' envisages a co+*laint filed against an entit3 '(ic( (as co++itted usur3& for t(e recover3 of t(e usurious interest *aid. In t(at case& if t(e entit3 sued s(all not file its ans'er under oat( den3ing t(e allegation of usur3& t(e defendant s(all %e dee+ed to (ave ad+itted t(e usur3. )(e *rovision does not a**l3 to a case& as in t(e *resent& '(ere it is t(e defendant& not t(e *laintiff& '(o is alleging usur3. Reasoning Sec. / of t(e Isur3 "a' states@ F)(e *erson or cor*oration sued s(all file its ans'er in 'riting under oat( to an3 co+*laint %roug(t or filed against said *erson or cor*oration %efore a co+*etent court to recover t(e +one3 or ot(er *ersonal or real *ro*ert3& seeds or agricultural *roducts& c(arged or received in violation of t(e *rovisions of t(is Act. )(e lacA of taAing an oat( to an ans'er to a co+*laint 'ill +ean t(e ad+ission of t(e facts contained in t(e latter.L -or so+eti+e& usur3 (as %een legall3 none7istent. Interest can no' %e c(arged as tender and %orro'er +a3 agree u*on.4 )(e Rules of Court in regards to allegations of usur3& *rocedural in nature& s(ould %e considered re*ealed 'it( retroactive effect. Disposition .udg+ent affir+ed

H!K ! c!n e# )!c,Den PHILIPPINE BANFIN/ CORPORATION V CA @AMALIO L. SARMIENTOA SCRA CORONA= J%n,%"( 31, 9BB:
NATURE Petition for revie' FACTS A+alio ". Sar+iento& registered o'ner of A.". Sar+iento Construction& a**lied for a loan fro+ P(ili**ine 8anAing Cor*oration in t(e su+ of P4&129&000& evidenced %3 *ro+issor3 note no. 929 ?4. Pursuant t(ereto& Sar+iento o%ligated (i+self to *a3 t(e a+ount 'it( interest at t(e rate of 2/J *er annu+. Additionall3& it 'as sti*ulated t(at if

Civil Procedure Digest

*a3+ent 'as not +ade u*on +aturit3 of t(e loan& *enalt3 c(arges of 1J *er +ont( and 25J of t(e total a+ount due 'ould %e c(arged against (i+. Sar+iento signed t(e aforesaid *ro+issor3 note toget(er 'it( t(e disclosure state+ent on loanEcredit transaction *rovided %3 t(e %anA. Sar+iento failed to *a3 t(e o%ligation on +aturit3& *ro+*ting P8C to send (i+ a letter of de+and. Des*ite t(e de+and& (o'ever& Sar+iento still failed to settle (is inde%tedness. P8C filed a co+*laint for a su+ of +one3 against (i+. In (is ans'er& Sar+iento denied t(at (e received t(e *roceeds of t(e loan transaction and *ra3ed t(at t(e case against (i+ %e dis+issed. )(e trial court rendered its decision finding t(at *laintiff +isera%l3 failed to *rove its case %3 *re*onderance of evidence. )(e case 'as dis+issed. P8C filed a +otion for ne' trial '(ic( t(e trial court su%se1uentl3 granted des*ite t(e o**osition of Sar+iento. )(e trial court rendered a decision finding t(e evidence adduced %3 t(e %anA to %e insufficient to su%stantiate its clai+. )(e trial court reinstated its earlier dis+issal of t(e case against Sar+iento and denied P(ili**ine 8anAing Cor*oration2s su%se1uent +otion for reconsideration. P8C a**ealed to t(e CA CA affir+ed 'it( +odification t(e trial court2s %3 deleting t(e trial court2s a'ard of attorne32s fees. ;ence& t(e instant *etition ISSUE >O< no *roof 'as re1uired of *etitioner to esta%lis( t(e contents of t(e said docu+ents %ecause suc( 4udicial ad+issions of res*ondent created a *ri+a facie case in *etitioner2s favor HELD <O. It is undis*uted t(at res*ondent Sar+iento signed t(e *ro+issor3 note and t(e acco+*an3ing disclosure state+ent on loanEcredit transaction. 8ut said *ieces of evidence *roved onl3 t(e e7istence of suc( docu+ents. )(ere 'as even no 1uestion as to t(at %ecause res*ondent Sar+iento (i+self ad+itted t(e due e7ecution t(ereof. )(e i+*ortant issue 'as '(et(er or not res*ondent Sar+iento actuall3 received t(e *roceeds of t(e su%4ect loan so as to +aAe (i+ lia%le t(erefor& a +atter '(ic( s(ould (ave %een ventilated %efore t(e trial court.

A2010 Avena
)(e trial court did in fact +aAe a finding t(at t(e docu+entar3 evidence of *etitioner failed to *rove an3t(ing s(o'ing t(at res*ondent indeed received t(e *roceeds of t(e loan. )(e Court of A**eals affir+ed t(e conclusions of t(e trial court and declared@
A *re e7isting o%ligation& it +a3 %e conceded& constitutes value and +a3& of and %3 itself& serve as valua%le and sufficient consideration for a contract suc( as t(e loan sued u*on. As an essential ele+ent of a contract& (o'ever& t(e sa+e s(ould (ave %een satisfactoril3 *roved %3 t(e a**ellant M *articularl3 '(en& as in t(e instant case& t(e a%sence of consideration 'as *recisel3 *ut in issue %3 t(e *leadings and 'as %uttressed %3 %ot( oral and docu+entar3 evidence. ;aving failed in t(is +aterial res*ect& t(e a**ellant2s 'it(dra'al of t(e a+ount su**osedl3 credited to t(e a**ellee2s account 'as understanda%l3 inter*reted %3 t(e court a 1uo as a ter+inationEcancellation of t(e loan t(e latter a**lied for. Considering furt(er t(at contracts 'it(out consideration do not e7ist in conte+*lation of la' and *roduce no effect '(atsoever 5Article 1052& Civil Code of t(e P(ili**ines6& t(e trial& liAe'ise& correctl3 dis+issed t(e a**ellant2s case.

Prof. Victoria A.

42

De&en#e0!7.ec i!n K%i'e) FATON V PALANCA /.R. N!. 3433:> PAN/ANIBAN= Sep eD7e" 2, 9BB:
NATURE Petition for Revie' under Rule 45 of t(e Rules of Court& assailing CA decision& and resolution den3ing !-R. FACTS -August 2& 1/90@ =eorge Taton filed a re1uest 'it( t(e District Office of t(e 8ureau of -orestr3 in Puerto Princesa& Pala'an& for t(e re classification 5forestagricultural land6 of a *iece of real *ro*ert3 Ano'n as So+%rero Island 5\1?(as6. 8-DO Puerto Princesa ordered t(e ins*ection& investigation and surve3 of t(e land& and t(ereafter for =eorge Taton to a**l3 for a (o+estead *atent. =a%riel !andocdoc 5no' retired "and Classification Investigator6 undertooA t(e investigation& ins*ection and surve3 of t(e area in t(e *resence of =eorge& (is %rot(er Rodolfo 5deceased6 and (is cousin& !anuel Palanca& .r.& 5res*ondent6. During said surve3& t(ere 'ere no actual occu*ants on t(e island %ut t(ere 'ere so+e coconut trees clai+ed to (ave %een *lanted %3 =eorge and Palanca 5alleged overseer of =eorge6 '(o 'ent to t(e island fro+ ti+e to ti+e to undertaAe develo*+ent 'orA& liAe *lanting of additional coconut trees. )(e a**lication for conversion of t(e '(ole So+%rero Island 'as favora%l3 endorsed %3 8-DO Puerto Princesa to its +ain office in !anila for a**ro*riate action. )(e na+es of -elicisi+o Cor*uB& Cle+ente !agda3ao and .esus =a*ilango and .uan -resnillo 'ere included in t(e endorse+ent as co a**licants of =eorge. Aut(orities noted t(at since t(e su%4ect land 'as no longer needed for forest
/ -or ot(er footnotes in t(is case@ V14W )(e said section *rovides t(at FVtW(ese rules s(all a**l3 in all courts& e7ce*t as

>

A state+ent in a 'ritten instru+ent regarding t(e *a3+ent of consideration is +erel3 in t(e nature of a recei*t and +a3 %e contradicted. Res*ondent Sar+iento denied (aving received t(e *roceeds of t(e loan and in fact *resented evidence s(o'ing t(at on t(e da3 *etitioner clai+ed to (ave credited t(e su%4ect a+ount& it 'as again de%ited or 'it(dra'n %3 *etitioner& ad+ittedl3 u*on t(e instruction of t(e officials fro+ *etitioner2s (ead office. Petitioner atte+*ted to controvert t(is fact %3 clai+ing t(at t(e *roceeds of t(e loan 'ere a**lied to res*ondent2s *revious o%ligations to t(e %anA. 8ut t(ere is not(ing in t(e records s(o'ing t(at res*ondent (ad ot(er o%ligations to '(ic( t(e *roceeds of t(e loan could or s(ould (ave %een a**lied. !oreover& *etitioner failed to e7*lain 4ust e7actl3 '(at said o%ligations 'ere or to '(at e7tent t(e *ur*orted *roceeds 'ere a**lied in satisfaction t(ereof. >(at a**eared clearl3 'as t(at t(e *roceeds of t(e loan 'ere de*osited t(en 'it(dra'n t(e sa+e da3 %3 *etitioner itself& t(us negating its clai+ t(at res*ondent actuall3 received it. Petitioner t(erefore failed to esta%lis( its case against res*ondent Sar+iento. 8e t(at as it +a3& t(e general rule is t(at onl3 1uestions of la' +a3 %e raised in a *etition for revie' on certiorari. 8arring a s(o'ing t(at t(e findings of fact co+*lained of are totall3 devoid of su**ort in t(e records& suc( deter+ination +ust stand for t(e Court is neit(er e7*ected nor re1uired to e7a+ine or refute t(e oral and docu+entar3 evidence su%+itted %3 t(e *arties. Di#p!#i i!n Petition D#<I#D.

ot(er'ise *rovided %3 t(e Su*re+e Court.L V05W V0:W ]15g6 of Rule 19 of t(e Rules of Court. ]2 of Rule 0 of t(e Rules of Court reads@

FS#C. 2. Parties in interest. A real *art3 in interest is t(e *art3 '(o stands to %e %enefited or in4ured %3 t(e 4udg+ent in t(e suit& or t(e *art3 entitled to t(e avails of t(e suit. Inless ot(er'ise aut(oriBed %3 la' or t(ese Rules& ever3 action +ust %e *rosecuted or defended in t(e na+e of t(e real *art3 in interest.L

Civil Procedure Digest

*ur*oses& t(e sa+e is t(erefore certified and released as agricultural land for dis*osition under t(e Pu%lic "and Act. =eorge Taton sa3s@ t(e '(ole So+%rero Island (ad %een classified fro+ forest land to agricultural land and certified availa%le for dis*osition u*on (is re1uest and at (is instance. ;o'ever land investigators of t(e Puerto Princesa District "and Office& later favora%l3 endorsed t(e re1uest of res*ondents !anuel Palanca .r. and "orenBo Agustin& for aut(orit3 to surve3 vacant *ortions of So+%rero Island consisting of 5(ectares eac(. Su%se1uentl3& res*ondents filed t(eir o'n (o+estead *atent a**lications@ "orenBo Agustin 54.0(as6& .uan -resnillo 5?.5(as6& and .esus =a*ilango 5QQ(as6. !anuel Palanca& .r. 'as issued a ;o+estead Patent <o. and OC) for 9.?4 (ectares of So+%rero Island. -Taton filed Co+*laint for F<ullification of A**lications for ;o+estead and Original Certificate of )itle <o. = :0?/ and for Reconve3ance of )itleL and *ra3ed for reconve3ance of t(e '(ole island in (is favor& arguing t(at t(e (o+estead *atents and original certificates of title covering certain *ortions of So+%rero Island issued in favor of res*ondents 'ere invalid for (aving %een o%tained t(roug( fraud. Re#p!n)en $# %"+,Den #? !anuel Palanca asserts t(at (e (i+self re1uested for t(e reclassification of t(e island in dis*ute$ t(at a%out t(e ti+e of suc( re1uest& -resnillo& =a*ilango and (i+self alread3 occu*ied t(eir res*ective areas and introduced nu+erous i+*rove+ents$ t(at Taton never filed an3 (o+estead a**lication for t(e island$ t(at =a%riel !andocdoc never undertooA t(e ins*ection and surve3 of t(e island$ t(at (e is not a +ere overseer of Taton %ecause (e 'as acting for (i+self in develo*ing (is o'n area and not as an3%od32s caretaAer. Res*ondents aver t(at t(e3 are all %ona fide and la'ful *ossessors of t(eir res*ective *ortions& (ave declared suc( for ta7ation *ur*oses and (ave %een fait(full3 *a3ing ta7es t(ereon for t'ent3 3ears. )(e3 contend t(at Taton (as no legal ca*acit3 to sue insofar as t(e island is concerned 5an action for reconve3ance can onl3 %e %roug(t %3 t(e o'ner and not a +ere (o+estead a**licant6 and t(at *etitioner is guilt3 of esto**el %3 lac(es for (is failure to assert (is rig(t over t(e land for an unreasona%le and une7*lained *eriod of ti+e. After filing t(eir Ans'er 'it( S*ecial andEor Affir+ative Defenses and Counterclai+& res*ondents

A2010 Avena
also filed a !otion to Dis+iss on t(e ground of t(e alleged defiance %3 Taton of t(e R)C2s order to a+end (is Co+*laint 5su%stitution %3 t(e legal (eirs of t(e deceased =a*ilango6. !)D 'as granted. Taton2s !-R 'as denied. Taton filed *etition for certiorari %efore CA. Instead of li+iting itself to t(e allegation of grave a%use of discretion& CA ruled on t(e +erits N (eld t(at '(ile Taton (ad caused t(e reclassification of So+%rero Island fro+ forest to agricultural land& (e never a**lied for a (o+estead *atent under t(e Pu%lic "and Act. ;ence& (e never ac1uired title to t(at land. Also& granting arguendo t(at Taton (ad t(e e7clusive rig(t to a**l3 for a *atent to t(e land in 1uestion& (e 'as alread3 %arred %3 lac(es for (aving sle*t on (is rig(t for al+ost 20 3ears fro+ t(e ti+e Palanca2s title (ad %een issued On !R& CA acAno'ledged t(at it (ad erred '(en it ruled on t(e +erits of t(e case. It agreed 'it( Taton t(at t(e )C (ad acted 'it(out 4urisdiction in *erfunctoril3 dis+issing (is Se*t10& 1/// !-R& on t(e erroneous ground t(at it 'as a t(ird and *ro(i%ited +otion '(en it 'as actuall3 onl3 (is first +otion. <onet(eless& t(e co+*laint 'as dis+issed +otu *ro*rio %3 t(e CA M 'it( t'o 4ustices dissenting M *ursuant to its Fresidual *rerogativeL under Sec. 1 of Rule / of t(e Rules of Court. CA said t(at fro+ t(e allegations of t(e co+*laint& Taton clearl3 (ad no standing to seeA reconve3ance of t(e dis*uted land& %ecause (e neit(er (eld title to it nor even a**lied for a (o+estead *atent. It reiterated t(at onl3 t(e State could sue for cancellation of t(e title issued u*on a (o+estead *atent& and for reversion of t(e land to t(e *u%lic do+ain. It also ruled t(at *rescri*tion (ad alread3 %arred t(e action for reconve3ance. ISSUES 1. >O< CA 'as correct in resolving t(e *etition for certiorari %ased on an issue not raised in t(e *etition 5>O< CA 'as correct in ruling on t(e +erits6 2. >O< CA 'as correct in invoAing its alleged Yresidual *rerogative2 under Section 1& Rule / of t(e 1//: Rules of Civil Procedure in resolving t(e Petition on an issue not raised in t(e Petition 5and eventuall3 dis+issing t(e case for *rescri*tion and lacA of 4urisdiction6 HELD >(ere *rescri*tion& lacA of 4urisdiction or failure to state a cause of action clearl3 a**ear fro+ t(e co+*laint filed 'it( t(e )C& t(e action +a3 %e

Prof. Victoria A.

4;

dis+issed +otu *ro*rio %3 t(e CA& even if t(e case (as %een elevated for revie' on different grounds. Veril3& t(e dis+issal of suc( cases a**ro*riatel3 ends useless litigations. 1. )(is is not t(e first ti+e t(at *etitioner (as taAen issue 'it( t(e *ro*riet3 of t(e CA2s ruling on t(e +erits. ;e raised it 'it( t(e CA '(en (e +oved for reconsideration of CA2s Dec?& 2000 Decision. )(e CA even corrected itself in its <ov20& 2001 Resolution. )(at s(ould (ave %een enoug( to settle t(e issue. )(e CA2s Resolution on t(is *oint (as rendered *etitioner2s issue +oot. )(ere is no need to discuss it furt(er. Suffice it to sa3 t(at t(e a**ellate court indeed acted ultra 4urisdictio in ruling on t(e +erits of t(e case '(en t(e onl3 issue t(at could (ave %een& and 'as in fact& raised 'as t(e alleged grave a%use of discretion co++itted %3 t(e trial court in den3ing Taton2s !-R. Settled is t(e doctrine t(at t(e sole office of a 'rit of certiorari is t(e correction of errors of 4urisdiction. Suc( 'rit does not include a revie' of t(e evidence& V10W +ore so '(en no deter+ination of t(e +erits (as 3et %een +ade %3 t(e trial court& as in t(is case. 2. <O CA2s Fresidual *rerogativesL under Sec1 of Rule/ of t(e Rules of Court is different fro+ t(e Fresidual 4urisdictionL of )C over cases a**ealed to CA. R#SIDIA" PR#RO=A)IV#S@ Sec 3 !& R,*e > !& -e R,*e# !& C!," ? defenses and o jections not pleaded either in a motion to dismiss or in the ans$er are deemed $aived# e%cept $hen =1> lac' of jurisdiction over the su ject matter# =2> litis pendentia# =D> res judicata and =E> prescription are evident from the pleadings or the evidence on record. 4n the four e%cepted instances# the court shall motu proprio dismiss the claim or action. R#SIDIA" .IRISDIC)IO<@ Sec > !& R,*e :3 !& -e R,*e# !& C!," 3B@
10Rule41.FS#C. /. Perfection of a**eal$ effect t(ereof. M A *art32s a**eal %3 notice of a**eal is dee+ed *erfected as to (i+ u*on t(e filing of t(e notice of a**eal in due ti+e. FA *art32s a**eal %3 record on a**eal is dee+ed *erfected as to (i+ 'it( res*ect to t(e su%4ect +atter t(ereof u*on t(e a**roval of t(e record on a**eal filed in due ti+e. FIn a**eals %3 notice of a**eal& t(e court loses 4urisdiction over t(e case u*on t(e *erfection of t(e a**eals filed in due ti+e and t(e e7*iration of t(e ti+e to a**eal of t(e ot(er *arties. FIn a**eals %3 record on a**eal& t(e court loses 4urisdiction onl3 over t(e su%4ect +atter t(ereof u*on t(e a**roval of t(e records on a**eal filed in due ti+e and t(e e7*iration of t(e

Civil Procedure Digest

)(e Fresidual 4urisdictionL of trial courts is availa%le at a stage in '(ic( t(e court is nor+all3 dee+ed to (ave lost 4urisdiction over t(e case or t(e su%4ect +atter involved in t(e a**eal. )(is stage is reac(ed u*on t(e *erfection of t(e a**eals %3 t(e *arties or u*on t(e a**roval of t(e records on a**eal& %ut *rior to t(e trans+ittal of t(e original records or t(e records on a**eal. In eit(er instance& t(e )C still retains its so called residual 4urisdiction to issue *rotective orders& a**rove co+*ro+ises& *er+it a**eals of indigent litigants& order e7ecution *ending a**eal& and allo' t(e 'it(dra'al of t(e a**eal. CA2s +otu *ro*rio dis+issal of *etitioner2s Co+*laint could not (ave %een %ased on residual 4urisdiction under Rule 41. Suc( order of dis+issal 'as not one for t(e *rotection and *reservation of t(e rig(ts of t(e *arties& *ending t(e dis*osition of t(e case on a**eal. >(at t(e CA referred to as residual *rerogatives 'ere t(e general residual *o'ers of t(e courts to dis+iss an action +otu *ro*rio u*on t(e grounds +entioned in Section 1 of Rule / of t(e Rules of Court and under aut(orit3 of Section 2 of Rule 1 of t(e sa+e rules. .urisdiction over t(e su%4ect +atter is conferred %3 la' and is deter+ined %3 t(e allegations in t(e co+*laint and t(e c(aracter of t(e relief soug(t. Taton *ra3ed& a+ong ot(ers& for a 4udg+ent 516 nullif3ing t(e (o+estead *atent a**lications of Res*ondents Agustin& -resnillo and =a*ilango as 'ell as ;o+estead Patent <o. 145/2: and OC) <o. = :0?/ in t(e na+e of Res*ondent Palanca$ and 526 ordering t(e director of t(e "and !anage+ent 8ureau to reconve3 t(e So+%rero Island to *etitioner. H@ did t(e Co+*laint sufficientl3 allege an action for declaration of nullit3 of t(e free *atent and certificate of title or& alternativel3& for reconve3anceQ Or did it *lead +erel3 for reversionQ Ans@ )(e co+*laint did not sufficientl3 +aAe a case for an3 of suc( actions& over '(ic( t(e )C could (ave e7ercised 4urisdiction. In an action for nullification of title or declaration of its nullit3& t(e co+*laint +ust contain t(e follo'ing allegations@
ti+e to a**eal of t(e ot(er *arties. FIn eit(er case& *rior to t(e trans+ittal of t(e original record or t(e record on a**eal& t(e court +a3 issue orders for t(e *rotection and *reservation of t(e rig(ts of t(e *arties '(ic( do not involve an3 +atter litigated %3 t(e a**eal& a**rove co+*ro+ises& *er+it a**eals of indigent litigants& order e7ecution *ending a**eal in accordance 'it( Section 2 of Rule 0/& and allo' 'it(dra'al of t(e a**eal.L

A2010 Avena
16 t(at t(e contested land 'as *rivatel3 o'ned %3 t(e *laintiff *rior to t(e issuance of t(e assailed certificate of title to t(e defendant$ and 26 t(at t(e defendant *er*etuated a fraud or co++itted a +istaAe in o%taining a docu+ent of title over t(e *arcel of land clai+ed %3 t(e *laintiff. In t(ese cases& t(e nullit3 arises not fro+ fraud or deceit& %ut fro+ t(e fact t(at t(e director of t(e "and !anage+ent 8ureau (ad no 4urisdiction to %esto' title$ (ence& t(e issued *atent or certificate of title 'as void a% initio. In an alternative action for reconve3ance& t(e certificate of title is also res*ected as incontroverti%le& %ut t(e transfer of t(e *ro*ert3 or title t(ereto is soug(t to %e nullified on t(e ground t(at it 'as 'rongfull3 or erroneousl3 registered in t(e defendant2s na+e. )(e co+*laint +ust allege t'o facts t(at& if ad+itted& 'ould entitle t(e *laintiff to recover title to t(e dis*uted land@ 516 t(at t(e *laintiff 'as t(e o'ner of t(e land& and 526 t(at t(e defendant illegall3 dis*ossessed t(e *laintiff of t(e *ro*ert3. In t(e *resent case& no'(ere in t(e Co+*laint did *etitioner allege t(at (e (ad *reviousl3 (eld title to t(e land in 1uestion. On t(e contrar3& (e acAno'ledged t(at t(e dis*uted island 'as *u%lic land& t(at it (ad never %een *rivatel3 titled in (is na+e& and t(at (e (ad not a**lied for a (o+estead under t(e *rovisions of t(e Pu%lic "and Act. ReversionQ <o. Section 101 of t(e Pu%lic "and Act categoricall3 declares t(at onl3 t(e solicitor general or t(e officer in (is stead +a3 institute suc( an action. A *rivate *erson +a3 not %ring an action for reversion or an3 ot(er action t(at 'ould (ave t(e effect of canceling a free *atent and its derivative title& 'it( t(e result t(at t(e land t(ere%3 covered 'ould again for+ *art of t(e *u%lic do+ain. The dis$issal of the Co$plaint is proper not onl% &ecause of lac' of jurisdiction( &ut also &ecause of the utter a&sence of a cause of action( a defense raised &% respondents in their !nswer. Assu+ing t(at *etitioner is t(e *ro*er *art3 to %ring t(e action for annul+ent of title or its reconve3ance& t(e case s(ould still %e dis+issed for %eing ti+e %arred. A. 1/::& -e%21@ a (o+estead *atent and an OC) 'as issued to Palanca 1/??& Oct9@ filing of t(e co+*laint& 'a3 *ast ten 3ears fro+ t(e date of t(e issuance of t(e Certificate& t(e *rescri*tive *eriod for reconve3ance of fraudulentl3 registered real *ro*ert3.

Prof. Victoria A.

4>

8. Palanca2s title attained t(e status of indefeasi%ilit3 one 3ear fro+ t(e issuance of t(e *atent and t(e Certificate of )itle in -e%ruar3 1/::. It is no longer o*en to revie' on t(e ground of actual fraud. )rial courts (ave aut(orit3 and discretion to dis+iss an action on t(e ground of *rescri*tion '(en t(e *artiesD *leadings or ot(er facts on record s(o' it to %e indeed ti+e %arred$ and it +a3 do so on t(e %asis of a +otion to dis+iss 5Sec. 1&f& Rule 19& Rules of Court6& or an ans'er '(ic( sets u* suc( ground as an affir+ative defense 5Sec. 5& Rule 196& or even if t(e ground is alleged after 4udg+ent on t(e +erits& as in a +otion for reconsideration$ or even if t(e defense (as not %een asserted at all& as '(ere no state+ent t(ereof is found in t(e *leadings$ or '(ere a defendant (as %een declared in default. >(at is essential onl3 is t(at t(e facts de+onstrating t(e la*se of t(e *rescri*tive *eriod %e ot(er'ise sufficientl3 and satisfactoril3 a**arent on t(e record$ eit(er in t(e aver+ents of t(e *laintiffDs co+*laint& or ot(er'ise esta%lis(ed %3 t(e evidence. Disposition Petition denied. CA resolution affir+ed. Co+*laint dis+issed on t(e grounds of lacA of 4urisdiction& failure to state a cause of action and *rescri*tion. Costs against *etitioner.

COMMON PROVISIONS
Re p%" # !& p*e%)in+

FIL-ESTATE /OLF AND DEVELOPMENT, INC. V CA @CABUCO-ANDRESA 954 SCRA 53: FAPUNAN= DeceD7e" 35, 3>>5
NATURE Petition for revie' on certiorari of a decision of t(e CA. FACTS Petitioner -il #state =olf and Develo*+ent& Inc. 5-#=DI6 is t(e develo*er of t(e !anila Sout('oods golf course and residential su%division *ro4ect '(ic( *artl3 covers lands located in 8iPan& "aguna. Dece+%er 2/& 1//2@ -eli*e "a3os filed a Co+*laint for In4unction and Da+ages 'it( A**lication for Preli+inar3 In4unction against -il #state Realt3 Cor*oration 5-#RC6 'it( t(e R)C of 8iPan. It alleged t(at -eli*e "a3os is t(e legal o'ner and *ossessor of

Civil Procedure Digest

t('o *arcels of land (aving a total area of ?0:&9/5 s1. +. located in 8iPan& "aguna Ano'n as "ots 1 N 2 of Plan Psu 201. "a3os clai+ed t(at t(e Sout('oods *ro4ect encroac(ed u*on t(e aforecited lands and t(us (is rig(ts of o'ners(i* and *ossession 'ere violated '(en -#RC %roug(t in +en and e1ui*+ent to %egin develo*+ent of t(e said *ro*erties. -e%ruar3 2& 1//0@ -#RC filed an O**osition to A**lication for >rit of Preli+inar3 In4unction and e7*licitl3 stated t(erein t(at t(e develo*er is its sister co+*an3& -#=DI. M%"c- 9>, 3>>1? .udge Sultan of R)C 8iPan issued an order den3ing t(e *ra3er for *reli+inar3 in4unction in vie' of "a3os2 ina%ilit3 to su%stantiate (is rig(t. J,ne 94, 3>>1? "a3os along 'it( (is 'ife and ot(er individuals filed anot(er case for In4unction and Da+age 'it( Pra3er for Preli+inar3 In4unction 'it( t(e R)C of San Pedro& t(is ti+e against -#=DI. )(e co+*laint is %asicall3 identical to t(at filed in t(e 8iPan case& e7ce*t for c(anges in t(e nu+%er of *art3 *laintiffs and *art3 defendants and in t(e area siBe of t(e clai+ed land(oldings. -#=DI +oved to dis+iss t(e San Pedro case on grounds of litis pendentia& foru+ s(o**ing& lacA of cause of action and lacA of 4urisdiction. -#=DI argues t(at a si+ilar co+*laint 'as *reviousl3 filed 'it( t(e R)C 8iPan court. -#=DI also averred t(at t(e docu+ents relied u*on %3 t(e *rivate res*ondents are of dou%tful veracit3 and t(at t(e3 failed to *a3 t(e correct filing fees. .udge Ca%uco Andres of San Pedro R)C denied -#=DI2s +otion to dis+iss& as 'ell as t(e !otion for Reconsideration. -#=DI filed a Petition for Certiorari and Pro(i%ition 'it( A**lication for Preli+inar3 In4unction 'it( t(e CA. CA ordered an R)O en4oining Ca%uco Andres. .anuar3 25& 1//4@ R)C 8iPan case 'as dis+issed 'it(out *re4udice on grounds of foru+ s(o**ing. ISSUES 1. >O< "a3os is guilt3 of foru+ s(o**ing. 2. >O< t(e San Pedro case (as cause of action. HELD 3. YES Ratio Reasoning Private res*ondents (ave indeed resorted to foru+ s(o**ing in order to o%tain a favora%le decision. )(e *attern is undis*uta%l3 revealed %3 t(e fact t(at after -eli*e "a3os instituted in 1//2 a case for in4unction and da+ages 'it(

A2010 Avena
a**lication for *reli+inar3 in4unction in t(e R)C of 8iPan& and after (is *ra3er 'as denied in !arc( 1//0& (e 5and ot(er individuals6 filed an identical co+*laint for in4unction and da+ages 'it( *reli+inar3 in4unction in .une 1//0& t(is ti+e 'it( R)C San Pedro. An e7a+ination 'ould s(o' t(at t(e San Pedro co+*lains is si+*l3 an i+*roved version of t(e 8iPan co+*laint. Res*ondents content t(at t(ere is no identit3 of *art defendants since it 'as -#RC in t(e 8iPan case and -#=DI in t(e San Pedro case. )(is is un+eritorious& %ecause -#=DI voluntaril3 su%+itted to t(e court2s 4urisdiction %3 filing its ans'er and e7*ressl3 stating t(at it is t(e develo*er of Sout('oods& and not -#RC. )(e 8iPan court e7*ressl3 recogniBed -#=DI as t(e defendant in t(e said case. )(e 'illful atte+*t %3 *rivate res*ondent to o%tain a *reli+inar3 in4unction in anot(er court after it failed to ac1uire t(e sa+e fro+ t(e original court constitutes grave a%use of t(e 4udicial *rocess. SC-A)Dini# "% i'e Ci"c,*%" B:->:? Revised Circular 2/ /1 a**lies to and governs t(e filing of *etitions in t(e Su*re+e Court and t(e Court of A**eals and is intended to *revent t(e +ulti*le filing of t(e *etitions or co+*laints involving t(e sa+e issues in ot(er tri%unals. )(e follo'ing re1uire+ents 777 s(all %e strictl3 co+*lied 'it( in t(e filing of t(e co+*laints& *etitions& a**lications or ot(er initiator3 *leadings in all courts and agencies ot(er t(an t(e SC 777. )(e co+*laint and ot(er initiator3 *leadings referred to and su%4ect of t(is Circular are t(e original civil co+*laint& counter clai+& cross clai+& t(ird 5fourt(& etc6 *art3 co+*laint& or co+*laint in intervention& *etition& or a**lication '(erein a *art3 asserts (is clai+ for relief. 9. NO Ratio In t(e deter+ination of >O< t(e co+*laint states a cause of action& t(e anne7es attac(ed to t(e co+*laint +a3 %e considered& t(e3 %eing *arts of t(e co+*laint. Reasoning )(e San Pedro case also did not state a cause of action. In deter+ining >O< a co+*laint states a cause of action& onl3 t(e allegations in t(e co+*laint +ust %e considered. )(e test if sufficienc3 of t(e facts is >O< ad+itting t(e facts alleged t(e court can render a valid 4udg+ent u*on t(e sa+e in accordance 'it( t(e *ra3er t(ereof.

Prof. Victoria A.

5B

)(ere is no cause of action %ecause "a3os2 clai+ on t(e land in 1uestion is %ased on a fa%ricated docu+ent. )(e affidavit of self ad4udication is a vital *art of t(e co+*laint t(at s(ould %e considered in t(e deter+ination of '(et(er or not a cause of action e7ists. )(e land Psu 201 is an original surve3 for .. Reed located in !alate& !anila& and Si 14:9/ is a surve3 nu+%er for t(e *lan of a land *arcel situated in 8o. 8essang& Caga3an in t(e na+e of =regorio 8lanco ;o'ever t(e CA and R)C li+ited itself to t(e allegations in t(e co+*laint *ro*er of t(e San Pedro case in concluding t(at said co+*laint stated a cause of action. )(is is erroneous. In t(e case of !arco**er !ining v =arcia& t(e R)C (ad t(e o**ortunit3 to e7a+ine t(e +erits of t(e co+*laint& t(e ans'er 'it( counterclai+& t(e *etitioner2s ans'er to t(e counterclai+ and its ans'er to t(e re1uest for ad+ission. It 'as %ut logical for said court to consider all of t(ese *leadings in deter+ining >O< t(ere 'as a sufficient cause of action in t(e *etitioner2s co+*laint. Regalado@ )(e e7ce*tion is *rovided in Sec. 2 Rule /. It as also %een (eld t(at under t(is ground t(e trial court can consider all t(e *leadings filed& including anne7es& +otions and t(e evidence on record. DISPOSITION )(e *etition for revie' on certiorari is granted. Res*ondents2 co+*laint is dis+issed.

DBP ' CA /.R. N!. 3:2932 Oc !7e" 2, 9BB:

NATURE *etition for revie' on certiorari assailing t(e Resolution of t(e CA dis+issing t(e *etition for certiorari filed %3 t(e D8P and Att3. <ilo =alor*ort FACTS 8i%iana =uerra de ABarcon& (erein *rivate res*ondent& and (er late (us%and Inocentes ABarcon& o%tained a loan fro+ P<8. As collateral& t(e3 +ortgaged 2 lots 'it( t(e %anA. 8ut t(e3 could not *a3 t(eir loan. Asuncion Calceta told 8i%iana t(at s(e is 'illing to *a3 t(eir loan if 8i%iana 'ould +ortgage t(e lots to (er. Private res*ondents agreed. Asuncion Calceta t(en +ade an initial *a3+ent of P2:0&000.00 to t(e P<8. )(e %anA e7tended t(e rede+*tion *eriod to allo' Asuncion to a**l3 'it( t(e D8P a loan

Civil Procedure Digest

of P0.5! to %e *aid to t(e P<8. Private res*ondents e7ecuted a si+ulated deed of sale of t(eir lots in (er favor to ena%le (er to +ortgage t(e sa+e 'it( t(e D8P. >(en t(e *roceeds of t(e loan 'ere released& Asuncion *aid t(e P<8 P/00&000.00 re*resenting t(e un*aid %alance of res*ondents2 loan. ;o'ever& s(e failed to *a3 (er loan 'it( t(e D8P& *ro+*ting t(e %anA to foreclose t(e +ortgage covering t(e 2 lots. After (earing *rivate res*ondents2 a**lication for *reli+inar3 in4unction& t(e R)C issued an Order en4oining t(e D8P and Att3. <ilo =alor*ort& t(e %anA2s de*utiBed s*ecial s(eriff& fro+ *roceeding 'it( t(e auction sale of t(e lots *ending t(e final deter+ination of t(e civil case '(erein *rivate res*ondents *ra3ed for annul+ent of t(e contract and t(e )C)s transferring title over t(e lots to Asuncion Calceta. D8P and Att3. =alor*ort filed an !-R %ut 'ere denied %3 t(e R)C. ;ence& t(e3 filed 'it( t(e CA a *etition for certiorari alleging t(at in granting t(e in4unctive relief in favor of *rivate res*ondents& t(e R)C acted 'it( grave a%use of discretion. )(e CA dis+issed t(e *etition for certiorari for failure of one of t(e *etitioners& Att3. <ilo =alor*ort to sign t(e certification against foru+ s(o**ing. )(e CA denied *etitioners2 !-R& (olding t(at Att3. De+ost(enes De+ecillo& 8ranc( !anager of t(e D8P at )ag%ilaran Cit3& failed to s(o' t(at (e is t(e %anA2s aut(oriBed re*resentative to file t(e *etition for certiorari. ISSUE >O< t(e CA acted 'it( grave a%use of discretion in dis+issing t(e *etition for certiorari HELD <O Ratio )(e certification against foru+ s(o**ing is fatall3 defective& not (aving %een dul3 signed %3 %ot( *etitioners. )(is *rocedural fla' 'arrants t(e dis+issal of t(e *etition for certiorari. )(e certification against foru+ s(o**ing +ust %e signed %3 t(e *rinci*al *arties. Reasoning )(e *etitioners %efore t(e CA 'ere t(e D8P& re*resented %3 Att3. De+ost(enes De+ecillo& t(e %anA2s 8ranc( !anager at )ag%ilaran Cit3& and Att3. <ilo =alor*ort& D8P2s de*utiBed s*ecial s(eriff. )(e certification against foru+ s(o**ing 'as signed %3 Att3. De+ecillo onl3. Petitioners e7*lained in t(eir !-R t(at in t(e verification of t(e *etition for

A2010 Avena
certiorari& Att3. De+ecillo stated under oat( t(at (e is t(e D8P2s incu+%ent 8ranc( ;ead and its dul3 aut(oriBed officer. )(e3 su%+itted a co*3 of a resolution *assed %3 t(e D8P 8oard of =overnors& aut(oriBing 8ranc( ;eads of t(e D8P to sign t(e verification and certification against foru+ s(o**ing of all initiator3 *leadings of t(e %anA. >(at *etitioners failed to e7*lain& (o'ever& is t(eir failure to attac( a certified true co*3 of t(e resolution to t(eir *etition. )(eir o+ission is fatal to t(eir case. Courts are not e7*ected to taAe 4udicial notice of cor*orate %oard resolutions or a cor*orate officer2s aut(orit3 to re*resent a cor*oration. Petitioners2 failure to su%+it *roof t(at Att3. De+ecillo (as %een aut(oriBed %3 t(e D8P to file t(e *etition is a ,sufficient ground for t(e dis+issal t(ereof., Att3. =alor*ort contends t(at t(e signature of Att3. De+ecillo& re*resenting t(e D8P& is sufficient since (e and D8P are %eing sued 4ointl3& t(e3 (aving a co++on interest in t(e lots under litigation. ;is contention lacAs +erit. D8P is %eing sued as a +ortgagee& '(ile (e is i+*leaded as t(e %anA2s de*utiBed s*ecial s(eriff '(o conducted t(e e7tra 4udicial foreclosure of t(e +ortgage. )(eir interests are not t(e sa+e. )(e certification against foru+ s(o**ing s(ould %e signed %3 all t(e *etitioners in a case& and t(e signing %3 onl3 one of t(e+ is insufficient. Disposition Petition is D#<I#D

Prof. Victoria A.

53

.anuar3 1///. ;o'ever& so+eti+e in 1//5& Rosario asAed for t(e return of t(e ISZ20&000 and for an accounting. Rose+arie *ro+ised to co+*l3 'it( t(e de+and %ut failed to do so. A 'ritten de+and 'as sent to (er. >(en Rose+arie did not co+*l3& Rosario filed a suit against (er. )(e >ees +oved to dis+iss t(e case %ased on t(e follo'ing grounds@ 516 t(e lacA of allegation in t(e co+*laint t(at earnest efforts to'ard a co+*ro+ise (ad %een +ade in accordance 'it( Article 1515 of t(e -a+il3 Code$ 526 failure to state a valid cause of action& t(e action %eing *re+ature in t(e a%sence of *revious earnest efforts to'ard a co+*ro+ise$ and 506 t(e certification against foru+ s(o**ing 'as defective& (aving %een e7ecuted %3 an attorne3 in fact and not t(e *laintiff. Rosario a+ended (er co+*laint to add t(at F#arnest efforts to'ards (ave %een +ade %ut t(e sa+e (ave failedL 5+ali talaga 3ung sinulat nila6. )(e trial court acce*ted t(e a+ended co+*laint and dis+issed t(e >ee2s +otion to dis+iss. >ee +oved for an !-R. It 'as also denied. )(e >ee cou*le %roug(t t(e +atter to t(e Court of A**eals via a s*ecial civil action for certiorari& *ro(i%ition& and +anda+us. It 'as also denied. )(e Court of A**eals (eld t(at t(e co+*laint& as a+ended& sufficientl3 stated a cause of action. It liAe'ise (eld t(at t(e 1uestioned certification against foru+ s(o**ing a**ended t(ereto 'as not so defective as to 'arrant t(e dis+issal of t(e co+*laint. An !-R 'as filed %ut 'as liAe'ise denied. ISSUE0S 1. >O< t(e certification of non foru+ s(o**ing e7ecuted %3 t(e *laintiff2s att3 in fact is defective 2. >O< t(e a+ended co+*laint %efore t(e R)C states a cause of action HELD 1. <o Reasoning )(e S*ecial Po'er of Attorne3 e7ecuted %3 (er in favor of =race =alveB& if su%4ected to careful scrutin3 'ould clearl3 s(o' t(at t(e aut(orit3 given to t(e latter is not onl3 %road %ut also all enco+*assing t(at it includes t(e *o'er and aut(orit3 to institute %ot( civil and cri+inal actions. Corollar3 'it( t(is *o'er is t(e aut(orit3 to sign all *a*ers& docu+ents& and *leadings necessar3 for t(e acco+*lis(+ent of t(e said *ur*ose. )(e SPA includes@

WEE V /ALVEZ :15 SCRA >5 EUISUMBIN/= A,+,# 33, 9BB:

NATURE Petition for revie' on certiorari FACTS Petitioner Rose+arie >ee and res*ondent Rosario D. =alveB are sisters. Rose+arie lives 'it( (us%and !anuel in 8ataan. Rosario lives in <e' CorA& ISA )(e3 entered into an agree+ent '(ere%3 Rosario 'ould send Rose+arie ISZ20&000& (alf of said a+ount to %e de*osited in a savings account '(ile t(e %alance could %e invested in t(e +one3 +arAet. )(e interest to %e earned t(erefro+ 'ould %e given to RosarioDs son& !anolito =alveB& as (is allo'ance In accordance 'it( (er agree+ent 'it( Rosario& Rose+arie gave !anolito (is +ont(l3 allo'ance ranging fro+ P2&000 to P4&000 a +ont( fro+ 1//0 to

Civil Procedure Digest

1. )o asA& de+and and clai+ an3 su+ of +one3 t(at is dul3 VdueW fro+ an3 *erson natural& 4uridical andEor cor*oration in t(e P(ili**ines$ 2. )o file cri+inal andEor civil co+*laints %efore t(e courts of 4ustice in t(e P(ili**ines to enforce +3 rig(ts and interestVsW$ 0. )o attend (earings andEor Preli+inar3 ConferenceVsW& to +aAe sti*ulations& ad4ust clai+s& to settle andEor enter into Co+*ro+ise Agree+entVsW& to litigate and to ter+inate suc( *roceedings$ VandW 4. )o sign all *a*ers& docu+ents and *leadings necessar3 for t(e acco+*lis(+ent of t(e a%ove *ur*oses. 2. C#S Ratio It is true t(at t(e lead sentence of *aragra*( / A& +a3 %e inco+*lete or even gra++aticall3 incorrect as t(ere +ig(t %e a +issing 'ord or *(rase& %ut to our +ind& a lacAing 'ord liAe ,co+*ro+ise, could %e su**lied %3 t(e rest of t(e *aragra*(. Reasoning Petitioners su%+it t(at t(e a+ended co+*laint violates Rule ?& Section 100 of t(e 1//: Rules of Civil Procedure& as t(ere is no *lain and direct state+ent of t(e ulti+ate facts on '(ic( t(e *laintiff relies for (er clai+. S*ecificall3& *etitioners contend t(at t(e allegation in *aragra*( / A of t(e a+ended co+*laint t(at ,#arnest efforts to'ards (ave %een +ade %ut t(e sa+e (ave failed, is clearl3 insufficient. )(e sentence is inco+*lete& t(us re1uires t(e reader of t(e *leading to engage in deductions or inferences in order to get a co+*lete sense of t(e cause of action& according to *etitioners. Res*ondent re%uts %3 stating t(at t(e a+ended co+*laint as 'ell as t(e anne7es attac(ed to t(e *leadings s(ould %e taAen in t(eir entiret3. )(us taAen toget(er& in t(eir entiret3& t(e a+ended co+*laint and t(e attac(+ents to t(e original co+*laint& clearl3 s(o' t(at a sufficient cause of action as it is s(o'n and stated t(at earnest efforts to'ards a co+*ro+ise (ave %een +ade& according to res*ondent. A *aragra*( is ,a distinct section or su%division of a 'ritten or *rinted co+*osition t(at consists of fro+ one to +an3 sentences& for+s a r(etorical unit. As a ,s(ort co+*osition consisting of a grou* of sentences dealing 'it( a single to*ic&, a *aragra*( +ust necessaril3 %e construed in its entiret3 in order to *ro*erl3 derive t(e +essage soug(t to %e conve3ed. In t(e instant case& *aragra*( / A of t(e A+ended Co+*laint deals 'it( t(e to*ic of efforts +ade %3 t(e res*ondent to reac( a co+*ro+ise %et'een t(e *arties. ;ence& it is in t(is lig(t t(at t(e defective

A2010 Avena
lead sentence +ust %e understood or construed. ;aving e7a+ined t(e A+ended Co+*laint in its entiret3 as 'ell as t(e docu+ents attac(ed t(ereto& follo'ing t(e rule t(at docu+ents attac(ed to a *leading are considered %ot( as evidence and as *art of t(e *leading& 'e find t(at t(e res*ondent (as *ro*erl3 set out (er cause of action. Disposition Petition is denied.

Prof. Victoria A.

59

BA/UIARO V. BARRIOS BBSCRA BB FERIA, 1B A,+. 3>:5

FACTS Co+*laint filed on .anuar3 :& 1/45& in t(e Court of -irst Instance of Iloilo %3 #+iliana )u*as Vda. de Atas against 8aguiaro. De Atas is t(e e7clusive and a%solute and registered o'ner of t(e follo'ing descri%ed *ro*ert3& situated in t(e Cit3 of Iloilo. )(e a%ove lot& 'it(out t(e i+*rove+ents '(ic( 'ere %urned during t(e 'ar& is assessed at P4&9?0. )(at so+eti+e in t(e +ont( of .ul3& 1/49& 8aguiaro ver%all3 solicited t(e *er+ission of (erein de Atas to construct a (ouse of lig(t +aterials on t(e lot of so+e t(ree %raBas 'ide and t(ree %raBas long 4ust enoug( for t(e+ to slee*& at a +ont(l3 rental of t'ent3 *esos 5P206& *a3a%le in advance& and de Atas told 8aguiaro t(at s(e 'ould t(inA t(e +atter$ s(e found out t(at defendant (ad alread3 %egun t(e construction of a ni*a and %a+%oo (ouse 'it( no a**roval fro+ (er$ Instead of constructing a (ouse of t(ree %raBas %3 t(ree %raBas as a%ove 8aguiaro (as %uilt additions after additions to t(e (ouse suc( t(at t(e *resent (ouse constructed is t'ent3 eig(t and one (alf feet on t(e front and fort3 t'o and one (alf feet on t(e side& and (as rented a *art t(ereof to ot(er *ersons& and t(at '(en *laintiff discovered t(is ano+al3 and violations of t(eir ver%al and initial agree+ent& defendant 'as told so+eti+e on Octo%er& 1/45& to *a3 a +ont(l3 rental of fift3 *esos 5P506 a +ont(& or vacate t(e lot in 1uestion. -or t(e +ont( of Octo%er& 8aguiaro *aid onl3 t(e su+ of P25& leaving a %alance of P25& and for su%se1uent +ont(s 8aguiaro (as refused and still refuses to *a3 t(e said rentals of fift3 *esos 5P506& or vacate t(e *re+ises& in s*ite of re*eated de+ands. Pra3er@ defendant to *a3 to *laintiff t(e su+ of fift3 *esos 5P506 as +ont(l3 rentals for t(e lot occu*ied

%3 (i+ of t(e *ro*ert3 of (erein *laintiff& %eginning 'it( t(e +ont( of Octo%er& 1/45& or to vacate t(e lot in 1uestion& 'it( costs against t(e defendant& and for suc( ot(er and for suc( ot(er and furt(er relief as t(is ;onora%le Court s(all dee+ 4ust and e1uita%le. 8aguiaro filed +otion to dis+iss on t(e ground t(at t(e Court (as no 4urisdiction over t(e su%4ect +atter of t(e co+*laint or suit& t(e action %eing eit(er for t(e collection of rentals of a real estate '(ic( do not reac( to t'o (undred *esos 5P2006 or for e4ect+ent fro+ t(e *re+ises in 4urisdiction over t(e su%4ect of t(e litigation. C-I +otion to dis+iss denied and sentencing 8aguiaro eit(er to *a3 t'o (undred fift3 *esos 5P2506 or to vacate t(e lot in 1uestion. Petition for Certiorari on t(e ground t(e res*ondent 4udge acted 'it(out 4urisdiction over t(e su%4ect +atter in tr3ing and deciding t(e case& and at t(e sa+e ti+e asAed t(is Court to en4oin t(e res*ondent 4udge fro+ taAing furt(er action in t(e case during t(e *endenc3 of t(is *etition. ISSUE >O< t(e court acted 'it(out 4urisdiction HELD Ces& court acted 'it(out 4urisdiction. It is an a7io+& in civil *rocedure t(at if t(e relief de+anded is not t(e *ro*er one '(ic( +a3 %e granted under t(e la'& it does not c(aracteriBe or deter+ine t(e nature of t(e *laintiffDs action& and t(at t(e relief to '(ic( t(e *laintiff is entitled %ased on t(e facts alleged %3 (i+ in (is co+*laint& alt(oug( it is not t(e relief de+anded& is '(at deter+ines t(e nature of t(e action. And t(at is t(e reason '(3 it is generall3 added to *ra3ers for relief& t(oug( not necessar3& t(e 'ords ,and for suc( ot(er relief as t(e la' 'arrants&, or ot(ers to t(e sa+e effect. So if a *laintiff alleges& for instance& t(at t(e defendant o'es t(e for+er a certain a+ount of +one3 and did not *a3 it at t(e ti+e sti*ulated& and *ra3s t(at t(e defendant %e sentenced to return a certain *ersonal *ro*ert3 to t(e *laintiff& suc( *ra3er 'ill not +aAe or convert t(e action of recover3& of de%t into one of recover3 of *ersonal *ro*ert3& and t(e court s(all grant t(e *ro*er relief& or sentence t(e defendant to *a3 (is de%t to t(e *laintiff. )(e attorne3 of t(e *laintiff& in (is o**osition to t(e defendantDs +otion to dis+iss filed in t(e court %elo'& and in (is ans'er to t(e *etition for certiorari in t(is Court& contends t(at t(e *laintiffDs *rinci*al action is for %reac( of contract& and t(erefore 'it(in

Civil Procedure Digest

t(e 4urisdiction of t(e Court of -irst Instance& %ecause it is not ca*a%le of *ecuniar3 esti+ation. )(ere is no suc( Aind of action. 8reac( of contract +a3 %e t(e cause of action& %ut not t(e action or relief itself. According to our Civil Code& a %reac( of contract is accuse of action& eit(er for s*ecific *erfor+ance& or *erfor+ance& or rescission of t(e contract. As t(e *laintiff is entitled is entitled onl3 to one of t(e t'o reliefs& if (e *ra3s t(at t(e defendants %e sentenced to *erfor+ t(e o%ligations i+*osed u*on (i+ %3 t(e contract t(e action is s*ecific *erfor+ance& and if (e *ra3s t(at t(e contract %e rescind t(e *laintiffDs action is rescission. In contracts of lease of a real estate& if t(e lessee violates t(e ter+s of t(e contract %3 (is failure to *a3 t(e rent due or to co+*l3 'it( t(e conditions of t(e lease& and refuses to vacate or return t(e *ossession of t(e *ro*ert3 leased to t(e lessor not'it(standing de+and to do so& t(e action is illegal detainer if filed 'it(in one 3ear& and recover3 or restoration of *ossession if filed after one 3ear& fro+ t(e de+and. )(at t(e *ra3er of relief in t(e co+*laint see+s to conve3 t(e idea t(at t(e *laintiff 'ould agree to let t(e defendant continue in *ossession if (e *a3s t(e rents or da+ages de+anded %3 t(e *laintiff& does not c(ange t(e nature of t(e action& since t(e court +a3 onl3 grant t(e *ro*er relief according to la'& t(at is& t(e e4ect+ent of t(e defendant and t(e *a3+ent %3 t(e latter of t(e da+ages due for t(e occu*ation of t(e land& t(oug( t(e *laintiff is free to condone said *a3+ent. It is evident t(at t(e court can not aut(oriBe t(e defendant *etitioner to continue in *ossession t(e land as lessee if (e *a3s t(e rents or da+ages de+anded %3 t(e *laintiff since suc( continuation de*ends not onl3 u*on t(e *laintiffDs 'ill %ut also u*on t(at of t(e defendant. A 4udg+ent aut(oriBing t(e defendant to continue as lessee for a certain and definite *eriod of ti+e after t(e 4udg+ent& 'ill not %ind t(e *laintiff to grant suc( lease nor t(e defendant to continue as lessee *a3ing t(e +ont(l3 rental fi7ed %3 t(e court. A court cannot +aAe and i+*ose a contract u*on t(e *arties. #ven assu+ing& arguendo& t(at t(e co+*laint +a3 contain t'o alternatives or inde*endent actions& one of forci%le entr3 and anot(er for recover3 of rents or da+ages& t(e Court of -irst Instance of Iloilo (as no 4urisdiction to entertain eit(er one or %ot(. It (as no 4urisdiction over t(e action of forci%le entr3& for it is 'it(in t(e e7clusive 4urisdiction of t(e 4ustice of t(e *eace$ nor over t(at of recover3 of rents or da+ages& %ecause t(e a+ount clai+ed %3 t(e *laintiff in (is co+*laint& '(ic( deter+ines t(e court

A2010 Avena
4urisdiction& is less t(an t'o (undred *esos 5P2006. According to t(e co+*laint& t(e *etitioner (ad occu*ied t(e lot in 1uestion during t(e +ont(s of Octo%er& <ove+%er& Dece+%er and .anuar3 '(en t(e co+*laint 'as filed& and t(e total a+ount of rents or da+ages clai+ed as due for t(at occu*ation at t(e rate of fift3 *esos 5P506 a +ont(& +inus t(e su+ of t'ent3 five *esos 5P256 '(ic( 'as *aid on account of t(e rent for Octo%er& aggregate onl3 one (undred and sevent3 five *esos 5P1:56. )(e fact t(at& in its 4udg+ent& t(e lo'er court (as a'arded t(e *laintiff t(e su+ of P250& including t(e rent for -e%ruar3& and not t(e P25 *aid on account %3 t(e *etitioner for t(e +ont( of Octo%er as alleged in t(e sa+e co+*laint& did not confer u*on t(e court 4urisdiction over t(e case. If t(e court (as no 4urisdiction over t(e su%4ect +atter according to t(e allegations in t(e co+*laint& it can not ac1uire it 4ust %ecause t(e rents clai+ed and t(ose t(at +a3 accrue during t(e *endenc3 of t(e suit +a3 a+ount to a su+ 'it(in its 4urisdiction. )o (old ot(er'ise 'ould lead to t(e a%surdit3 t(at t(e 4urisdiction of t(e court de*ends not u*on t(e allegations in t(e co+*laint& %ut u*on a contingenc3 '(ic( +a3 or +a3 not arise or occur. As t(e da+ages clai+ed in t(e co+*laint a+ounted to one (undred and sevent3 five *esos 5P1:56& could t(e lo'er court (ave sentenced t(e defendant to *a3 t(e a+ount clai+ed (ad t(e latter +ade a confession of 4udg+entQ Disposition )(e res*ondent 4udgeDs decision in t(is case is set aside$ 'it( costs against t(e res*ondent #+iliana )u*as Vda. de Atas. So ordered. PARAS, J., )i##en in+? )(e 'illingness of t(e *laintiff to let t(e defendant& (erein *etitioner !anuel 8aguioro& retain *ossession of t(e land u*on *a3+ent of t(e rent 5'(ic(& *laintiff alleges& s(ould %e P506 is *lainl3 re*ugnant to t(e t(eor3 t(at t(e *rinci*al *ur*ose of t(e action is e4ect+ent of t(e defendant or& in t(e language of section 1 of Rule :2& ,t(e restitution of *ossession., I*on t(e ot(er (and& giving suc( reasona%le intend+ents to t(e allegations of t(e co+*laint as are consistent 'it( and i+*lied %3 t(e relief soug(t& t(e action +a3 %e one for t(e enforce+ent of a lease contract G i+*lied or ot(er'ise G in '(ic( t(e court is asAed to fi7 t(e a+ount of t(e rent for 'ant of corres*onding sti*ulation. )(e clai+ t(at t(e rent oug(t to %e P50& '(en considered 'it( t(e *ra3er

Prof. Victoria A.

51

,for suc( ot(er and furt(er relief as t(is ;onora%le Court s(all dee+ 4ust and e1uita%le&, +erel3 invoAes t(e discretion and 4udg+ent of t(e court regarding t(e rig(teousness of said clai+. >(ile t(e co+*laint +a3 %e treated $as one for si+*le e4ect+ent& in t(e lig(t of so+e of its aver+ents& t(e circu+stance nevert(eless does not *revent it fro+ %eing an action G its deno+ination i++aterial G t(at +a3 %e filed originall3 in t(e Court of -irst Instance& in vie' of t(e ot(er allegations and t(e *ra3er. In t(e latter situation& +atters contained in t(e *leading '(ic( are not necessar3 to& or are inco+*ati%le 'it(& t(e 4urisdiction of t(e Court of -irst Instance +a3 %e considered sur*lusage. )(e co+*laint +ig(t (ave %een a'A'ardl3 drafted& %ut unless t(e defendant 'as actuall3 +isled to (is sur*rise or in4ur3& it s(ould %e (eld sufficient. 5"iBarraga ;er+anos vs. Ca* )ico& 24 P(il.& 504.6 It is needless to state t(at t(e nature of an action is deter+ined %3 its allegations and *ra3er. As long as t(e co+*laint +aAes out a case cogniBa%le %3 t(e Court of -irst Instance& t(e latterDs 4urisdiction 'ill not %e altered or taAen a'a3 si+*l3 %ecause t(e action cannot *ros*er. )(e 4udg+ent in t(is case 'as rendered after t(e defendant (ad %een declared in default. ;I"ADO& ..& dissenting@ "i%erall3 construed& as it s(ould %e 5Rule 15& section 1:6& t(e *laintiffDs co+*laint is susce*ti%le of t'o constructions@ as a co+*laint in e4ect+ent& and as one ai+ed at invoAing t(e general 4urisdiction of t(e Court of -irst Instance in actions for *ossession of real *ro*ert3& as regards t(e *laintiffDs land under section 59& *aragra*( 2& of Act <o. 109. In c(oosing %et'een t(ese t'o constructions in 4ustice to t(e learning and intelligence of counsel for t(e *laintiff& it see+s to +e t(at t(e court s(ould (ave (ad no difficult3 in concluding t(at (e +eant and intended to resort to t(e latter *rocedure& as (e s(ould %e *resu+ed to Ano' suc( an ele+ental rule as t(at '(ic( confers u*on t(e +unici*al or 4ustice of t(e *eace court e7clusive original 4urisdiction of forci%le entr3 and unla'ful detainer cases 'it(in t(e first 3ear follo'ing t(e accrual of t(e cause of action. #ven '(ere t(e defendant e+*lo3s& e. g.& violence in taAing *ossession of t(e *laintiffDs land& t(e la' does not co+*el t(e latter to resort to t(e su++ar3 re+ed3 3 furnis(ed %3 Rule :2& section 1& 4ust as it does not co+*el t(e *laintiff to file a cri+inal co+*laint for an3 cri+inal offense '(ic( t(e defendant +a3 (ave co++itted 'it( t(e use of suc( violence. )(e la' grants t(e *laintiff of re+edies& as

Civil Procedure Digest

'ell as a c(oice of courts& so long as (e la3s %efore t(e court of (is c(oice t(e facts calling for a *ro*er e7ercise of its 4urisdiction. So t(at an undis*uted o'ner of land '(o& as suc(& is %3 la' entitled to its *ossession& and '(o is de*rived t(ereof& e.. g.& %3 force& '(ile entitled to t(e su++ar3 re+ed3 afforded %3 Rule :2& section 1& '(ic( according to said section (e +a3 resort to& is neit(er co+*elled to %ring (is case t(ereunder& alleging t(e c(aracteristic circu+stance of violence& lodging (is action in t(e *ro*er inferior court& nor for%idden to seeA redress fro+ t(e *ro*er Court of -irst Instance %3 %ringing (is case under its general 4urisdiction ,in all civil actions '(ic( involve . . . t(e *ossession of real *ro*ert3 . . .,& 'aiving t(e effects of t(e violence co++itted %3 t(e defendant as 'ell as t(e su++ar3 re+ed3 to '(ic( suc( c(aracteristic circu+stance +a3 entitled& (ad si+*l3 alleging& as (is cause of action& (is o'ners(i* of t(e land& (is rig(t to its *ossession and t(e fact t(at (e (as %een de*rived of suc( *ossession %3 t(e defendant& regardless of t(e +anner e+*lo3ed in suc( de*rivation. )(e sa+e la' '(ic( does not co+*el t(e o'ner to %ring a cri+inal action %3 reason of suc( violence does not co+*el (i+ to %ring a forci%le entr3 suit %3 reason t(ereof. And it 'ould %e to +3 +ind scandalous to affir+ in a govern+ent of la's t(at in suc( circu+stances t(e o'ner 'ill %e *revented fro+ %ringing (is case under t(e general 4urisdiction of t(e Court of -irst Instance of t(e *rovince 'it(out invoAing t(e c(aracteristic circu+stance of violence. Of course& in an ordinar3 action co++enced in t(e Court of -irst Instance& (e 'ill not %e entitled to t(e su++ar3 *roceedings& suc( as t(e i++ediate e7ecution of t(e 4udg+ent& etc.& *rovided for in Rule :2. So long as t(e *laintiff does not rel3 on an3 of t(e s*ecific circu+stances c(aracteriBing t(e action as one of forci%le entr3 or unla'ful detainer& it cannot %e said to %e 'it(in t(e e7clusive original 4urisdiction of t(e +unici*al or 4ustice of t(e *eace court& even 'it(in t(e first 3ear follo'ing t(e accrual of t(e cause of action.

A2010 Avena
In 1//4& res*ondent !ondragon International P(ili**ines& Incor*orated 5!IPI6& entered into a "ease Agree+ent 'it( ClarA Develo*+ent Cor*oration 5ClarA6to develo* t(e 202 (ectare !i+osa "eisure #state. )(e3 also entered into su**le+ental lease agree+ents to develo* ot(er additional areas. Part of t(e funds used for t(ese *ro4ects 'as generated fro+ loans o%tained fro+ *etitioner C(ina 8anAing Cor*oration 5C8C6. )o secure t(ese loans& !IPI e7ecuted *ro+issor3 notes in favor of C8C. In addition& res*ondent Antonio I. =onBales e7ecuted a Suret3 Agree+ent in favor of C8C in t(e a+ount of P100!. In 1//:& t(e Asian financial crisis trans*ired. )(e ensuing s(ocA to t(e P(ili**ine econo+3 affected !IPI2s a%ilit3 to *a3 its o%ligations to C8C. In 2000& C8C filed a co+*laint for a su+ of +one3 'it( R)C !aAati Cit3 against !IPI and !r. =onBales. )(e certification of foru+ s(o**ing 'as attac(ed to t(e co+*laint. It 'as to t(e effect t(at@ !#RC#D#S #. =#R!A<& t(e !anager of "oans N Discounts De*t of t(e C(ina 8anAing Cor* certified t(at t(e defendant C(ina 8anA (as not co++enced an3 ot(er action or *roceeding involving t(e sa+e issues in t(e SC& CA or %efore an3 ot(er tri%unal or agenc3& and t(at to t(e %est of (er Ano'ledge& no suc( action or *roceeding is *ending& and t(at if a si+ilar action or *roceeding (as %een filed or is *ending %efore SC& CA or an3 ot(er tri%unal or agenc3& s(e undertaAes to re*ort t(at fact 'it(in five 556 da3s. In 2001& !IPI and =onBales filed !)D on t(e ff. grounds@ V1W t(e co+*laint failed to co+*l3 'it( t(e re1uire+ents set fort( under SC Ad+inistrative Circular <o. 04 /4 and Section 5& Rule : of t(e 1//: Rules of Civil Procedure as regards certifications against foru+ s(o**ing$ and V2W t(ere 'as nonco+*liance 'it( a condition *recedent for t(e filing of t(e case andEor t(e sa+e failed to state a cause of action or 'as *re+ature R)C denied !)D and !-R of !IPI and =onBales. CA granted t(e *etition for certiorari and reversed R)C. CA ruled t(at C8C failed to co+*l3 'it( t(e re1uire+ents of Section 5& Rule : of t(e 1//: Rules of Civil Procedure as t(ere 'as not(ing in t(e records s(o'ing t(at t(e signator3 of t(e certification against foru+ s(o**ing 'as aut(oriBed %3 C8C. It referred to t(e Cor*oration Code and 4uris*rudence '(ic( state t(at cor*orations e7ercise t(eir cor*orate *o'ers t(roug( t(eir %oard of directors and no *erson can %ind t(e cor*oration 'it(out aut(orit3 fro+ t(e latter. CA denied C8C2s !-R. ;ence& t(e *resent *etition.

Prof. Victoria A.

5:

ISSUE >O< C8C2s failure to attac( t(e re1uisite %oard resolution +aAing !s. =er+an an aut(oriBed signator3 of certifications against foru+ s(o**ing 'as a fatal error and cannot %e rectified %3 su%se1uent su%+ission t(ereof. HELD <O Ratio )(e Court (as rela7ed& under 4ustifia%le circu+stances& t(e rule re1uiring t(e su%+ission of t(ese certifications and (as a**lied t(e rule of su%stantial co+*liance under 4ustifia%le circu+stances 'it( res*ect to t(e contents of t(e certification. If t(e %elated filing of t(e certification against foru+ s(o**ing for co+*elling reasons in *revious rulings is allo'ed& 'it( +ore reason s(ould t(e Court sanction t(e ti+el3 su%+ission of suc( certification t(oug( t(e *roof of t(e signator32s aut(orit3 'as su%+itted t(ereafter. Reasoning )(e court (as used t(e doctrine of stare decisis to enunciate t(is *rinci*le. )(e ff. cases 'ere cited as aut(orit3@ Shipside 4ncorporated v. CA# Ateneo 3e ?aga Bniversit! v. 2analo# and# Pascual F Santos 4nc v. +ramo 6a'as ?eigh orhood Association. At t(e +eeting of C8C2s 8oard of Directors& t(e 8oard& in a resolution& a**roved& confir+ed and ratified !s. =er+an2s aut(orit3. )(oug( t(e 'ording of t(e %oard resolution leaves +uc( to %e desired& it re+ains e1uall3 susce*ti%le of inter*retation in favor of !s. =er+an2s *ree7isting status as an aut(oriBed signator3. Disposition Petition is =RA<)#D.

CRUZ-A/ANA V LA/MAN /.R. N!. 31>B3; CARPIO= Ap"i* 33, 9BB4

NATURE Petition for certiorari FACTS On 1? !arc( 1//9& *etitioner filed a Co+*laint for annul+ent of title 'it( *ra3er for *reli+inar3 +andator3 in4unction against res*ondent. Petitioner clai+s t(at as t(e sole (eir of one )eodorico CruB& s(e is t(e sole o'ner of a lot covered %3 )ransfer Certificate of )itle <o. ) 0/0:. Petitioner furt(er clai+s t(at t(e lot 'as fraudulentl3 sold to #ugenio

CHINA BANFIN/ CORP V MONDRA/ON INTERNATIONAL /.R. N!. 35:2>; PUNO= N!'eD7e" 32, 9BB4
NATURE Petition for certiorari FACTS

Civil Procedure Digest

"o*eB& .r. '(o later on transferred t(e lot to res*ondent. Res*ondent seasona%l3 filed its Ans'er 'it( co+*ulsor3 counterclai+. Petitioner +oved to dis+iss res*ondent2s counterclai+ for lacA of a certificate of non foru+ s(o**ing. In an Order dated 11 !arc( 1///& t(e trial court denied *etitioner2s +otion to dis+iss res*ondent2s counterclai+. )(e trial court reasoned t(at res*ondent2s counterclai+ is co+*ulsor3 and t(erefore e7cluded fro+ t(e coverage of Section 5& Rule : of t(e Rules of Court. Petitioner +oved t(at t(e trial court reconsider its Order invoAing t(e +andator3 nature of a certificate of non foru+ s(o**ing under Su*re+e Court Ad+inistrative Circular <o. 04 /4. On 25 !a3 1///& t(e trial court reversed its 11 !arc( 1/// Order and dis+issed res*ondent2s counterclai+ for lacA of a certificate of non foru+ s(o**ing. Res*ondent seasona%l3 filed a +otion for reconsideration arguing t(at Ad+inistrative Circular <o. 04 /4 does not a**l3 to co+*ulsor3 counterclai+s follo'ing t(e ruling in Santo )o+as Iniversit3 ;os*ital v. Surla. On 4 .une 1///& t(e trial court again reversed itself and recalled its Order dis+issing res*ondent2s counterclai+. )(e trial court ruled t(at t(e filing of a co+*ulsor3 counterclai+ does not re1uire a certificate of non foru+ s(o**ing. ISSUE >O< a co+*ulsor3 counterclai+ *leaded in an Ans'er can %e dis+issed on t(e ground of a failure to acco+*an3 it 'it( a certificate of non foru+ s(o**ing HELD <O Santo )o+as clarified t(e sco*e of Ad+inistrative Circular <o. 04 /4 'it( res*ect to counterclai+s. )(e Court *ointed out t(at t(is circular is intended *ri+aril3 to cover Fan initiator3 *leading or an inci*ient a**lication of a *art3 asserting a clai+ for relief.L )(e distinction %et'een a co+*ulsor3 and a *er+issive counterclai+ is vital in t(e a**lication of t(e circular. )(e Court e7*lained@ It s(ould not %e too difficult& t(e foregoing rationale of t(e circular a*tl3 taAen& to sustain t(e vie' t(at t(e circular in 1uestion (as not& in fact& %een conte+*lated to include a Aind of clai+ '(ic(& %3 its ver3 nature as %eing au7iliar3 to t(e *roceedings in t(e suit and as deriving its su%stantive and 4urisdictional su**ort t(erefro+&

A2010 Avena
can onl3 %e a**ro*riatel3 *leaded in t(e ans'er and not re+ain outstanding for inde*endent resolution e7ce*t %3 t(e court '(ere t(e +ain case *ends. Prescinding fro+ t(e foregoing& t(e *roviso in t(e second *aragra*( of Section 5& Rule ? of t(e 1//: Rules of Civil Procedure& i.e.& t(at t(e violation of t(e anti foru+ s(o**ing rule Fs(all not %e cura%le %3 +ere a+end+ent 777 %ut s(all %e cause for t(e dis+issal of t(e case 'it(out *re4udice&L %eing *redicated on t(e a**lica%ilit3 of t(e need for a certification against foru+ s(o**ing& o%viousl3 does not include a clai+ '(ic( cannot %e inde*endentl3 set u*. )(e Court reiterated t(is ruling in Ponciano v. .udge Parentela& .r. Ad+inistrative Circular <o. 04 /4 does not a**l3 to co+*ulsor3 counterclai+s. )(e circular a**lies to initiator3 and si+ilar *leadings. A co+*ulsor3 counterclai+ set u* in t(e ans'er is not an Finitiator3L or si+ilar *leading. )(e initiator3 *leading is t(e *laintiff2s co+*laint. A res*ondent (as no c(oice %ut to raise a co+*ulsor3 counterclai+ t(e +o+ent t(e *laintiff files t(e co+*laint. Ot(er'ise& res*ondent 'aives t(e co+*ulsor3 counterclai+. In s(ort& t(e co+*ulsor3 counterclai+ is a reaction or res*onse& +andator3 u*on *ain of 'aiver& to an initiator3 *leading '(ic( is t(e co+*laint. Petitioner2s counsel fails or si+*l3 refuses to acce*t t(e distinction %et'een a *er+issive counterclai+ and a co+*ulsor3 counterclai+. )(is distinction 'as t(e %asis for t(e ruling in Santo )o+as and Ponciano. )(e sole issue for resolution in t(e *resent case is '(et(er res*ondent2s counterclai+ is co+*ulsor3 or *er+issive. If it is a *er+issive counterclai+& t(e lacA of a certificate of non foru+ s(o**ing is fatal. If it is a co+*ulsor3 counterclai+& t(e lacA of a certificate of non foru+ s(o**ing is i++aterial. A co+*ulsor3 counterclai+ is an3 clai+ for +one3 or ot(er relief& '(ic( a defending *art3 +a3 (ave against an o**osing *art3& '(ic( at t(e ti+e of suit arises out of& or is necessaril3 connected 'it(& t(e sa+e transaction or occurrence t(at is t(e su%4ect +atter of *laintiff2s co+*laint.V/W It is co+*ulsor3 in t(e sense t(at it is 'it(in t(e 4urisdiction of t(e court& does not re1uire for its ad4udication t(e *resence of t(ird *arties over '(o+ t(e court cannot ac1uire 4urisdiction& and 'ill %e %arred in t(e future if not set u* in t(e ans'er to t(e co+*laint in t(e sa+e case. An3 ot(er counterclai+ is *er+issive.

Prof. Victoria A.

54

Res*ondent2s counterclai+ as set u* in its ans'er states@ 0. )(at %ecause of t(e un'arranted& %aseless& and un4ustified acts of t(e *laintiff& (erein defendant (as suffered and continue to suffer actual da+ages in t(e su+ of at least P400&000&000.00 '(ic( t(e la'& e1uit3& and 4ustice re1uire t(at to %e *aid %3 t(e *laintiff and furt(er to rei+%urse t(e attorne32s fees of P2&000&000.00$ It is clear t(at t(e counterclai+ set u* %3 res*ondent arises fro+ t(e filing of *laintiff2s co+*laint. )(e counterclai+ is so intert'ined 'it( t(e +ain case t(at it is inca*a%le of *roceeding inde*endentl3. )(e counterclai+ 'ill re1uire a re litigation of t(e sa+e evidence if t(e counterclai+ is allo'ed to *roceed in a se*arate action. #ven *etitioner recogniBes t(at res*ondent2s counterclai+ is co+*ulsor3. A co+*ulsor3 counterclai+ does not re1uire a certificate of non foru+ s(o**ing %ecause a co+*ulsor3 counterclai+ is not an initiator3 *leading. Disposition )(e decision *etition is denied.

Re D%nne" !& D%8in+ %**e+% i!n# PERPETUAL SAVIN/S V FAJARDO 991 SCRA 29B FELICIANO= J,ne9;,3>>1
FACTS? .... !ining and #7*loration Cor*oration 5,.... !ining,6 e7ecuted and delivered to *etitioner Per*etual Savings 5,8anA,6 a *ro+isor3 note in t(e a+ount of P:50.000.00 *a3a%le in one lu+* su+ u*on +aturit3 'it( interest at 20J *er annu+. )(e note also contained& inter alia& a clause *roviding for *enalt3 interest at t(e rate of 0J & nor +ont( on t(e a+ount due& co+*ounded +ont(l3. )(e *ro+isor3 note 'as e7ecuted for .... !ining %3 res*ondents .ose Oro 8. -a4ardo and #++anuel -. Del !ande. !essrs. -a4ardo and Del !undo are said to %e officers of .... !ining. I*on +aturit3 of t(e *ro+issor3 note& neit(er .... !ining nor an3one else *aid t(e a+ount of t(e inde%tedness& not'it(standing *etitionerDs re*eated 'ritten de+ands for *a3+ent. *etitioner 8anA filed a co+*laint 'it( t(e Regional )rial Court& !aAati& against ...$ !ining& .ose #++anuel .alandoni and (erein res*ondents -a4ardo

Civil Procedure Digest

and Del !undo& for collection of t(e a+ounts due under t(e *ro+issor3 note DefendantDs -a4ardo and Del !undo 'ere i+*leaded as agentsEor re*resentatives of Defendant Cor*oration '(o 'ere signatories in t(e Pro+issor3 <ote or alternativel3& in t(eir *ersonal ca*acities Fif it %e s(o'n t(at t(e3 contracted t(e loan full3 Ano'ing t(at t(e Defendant Cor*oration 'ould %e una%le to *a3 t(e sa+e u*on +aturit3& andEor t(at t(e3 used t(e *roceeds of t(e loan foe t(eir o'n *ersonal %enefitL Res*ondent -a4ardo and Del !undo filed a !otion to Dis+iss on t(e ground t(at t(e co+*laint (ad failed to stated cause of action against t(e+. R)C denied +otion to dis+iss. -a4ardo and Del !undo raised t(e case to t(e SC %ut SC referred case to CA. Res*ondents -a4ardo and Del !undo& %asicall3 alleged t(at *etitioner 8anADs co+*laint did not set fort( an3 cause of action as against t(e+ *ersonall3& and t(at Section 10& Rule 0 of t(e Rules of Court on alternative defendants 'as not a**lica%le to t(e case at %ar. CA granted +otion of -a4ardo and Del !undo ISSUE >O< co+*laint of Per*etual Savings stated a cause of action against res*ondents -a4ardo and Del !undo& as distinguis(ed fro+ .... !ining& on '(ose %e(alf t(e3 (ad *ur*orted to act. HELD C#S. Reasoning. In Rava Develo*+ent Cor*oration v. Court of A**eals& t(e Court ela%orated on t(is esta%lis(ed standard in t(e follo'ing +anner@ D)(e rule is t(at a defendant +oving to dis+iss a co+*laint on t(e ground of lacA of cause of action is regarded as (aving (3*ot(eticall3 ad+itted all t(e aver+ents t(ereof. )(e test of t(e sufficienc3 of t(e facts found in a *etition as constituting a cause of action is '(et(er or not& ad+itting t(e facts alleged& t(e court can render a valid .udg+ent u*on t(e sa+e in accordance 'it( t(e *ra3er t(ereof. In its Decision& CA said& a+ong ot(er t(e t(at *etitioner 8anADs co+*laint did not state a cause of action against res*ondents -a4ardo and Del !undo in t(eir *ersonal and individual ca*acities for t(e reason t(at. no evidence (ad %een *resented to su**ort suc( alleged lia%ilit3 on t(e ,so called alternative cause of action., )(e SC (eld t(at t(e CA 'as in reversi%le error. It 'as 1uite *re+ature for t(e Court of A**eals to consider evidence 5or lacA of evidence6 outside t(e

A2010 Avena
co+*laint since t(e trial (ad not 3et started. )(e allegations +ade %3 t(e %anA could %e *roven on trial.

Prof. Victoria A.
*ro*erl3 set out (er cause of action.

55

Re E&&ec !& F%i*,"e ! P*e%) CEREZO V. TUAZON @#,p"%A

NATURE Petition for revie' on certiorari FACTS 8us collided 'it( tric3cle EFFECT OF FAILURE TO PLEAD >(en a *art3 (as anot(er re+ed3 availa%le to (i+& '(ic( +a3 eit(er %e a +otion for ne' trial or a**eal fro+ an adverse decision of t(e trial court& and (e 'as not *revented %3 fraud& accident& +istaAe or e7cusa%le negligence fro+ filing suc( +otion or taAing suc( a**eal& (e cannot avail (i+self of t(is *etition. Indeed& relief 'ill not %e granted to a *art3 '(o seeAs avoidance fro+ t(e effects of t(e 4udg+ent '(en t(e loss of t(e re+ed3 at la' 'as due to (is o'n negligence$ ot(er'ise t(e *etition for relief can %e used to revive t(e rig(t to a**eal '(ic( (as %een lost t(ru ine7cusa%le negligence. Reasoning t(ere 'as no fraud& accident& +istaAe& or e7cusa%le negligence t(at *revented !rs. CereBo fro+ filing an a**eal& a +otion for ne' trial or a *etition for certiorari. It 'as error for (er to avail of a *etition for relief fro+ 4udg+ent.After t(e SC2s resolution den3ing !rs. CereBo2s *etition for relief %eca+e final and e7ecutor3& !rs. CereBo& in (er last ditc( atte+*t to evade lia%ilit3& filed %efore t(e Court of A**eals a *etition for annul+ent of t(e 4udg+ent of t(e trial court. Annul+ent is availa%le onl3 on t(e grounds of e7trinsic fraud and lacA of 4urisdiction. If %ased on e7trinsic fraud& a *art3 +ust file t(e *etition 'it(in four 3ears fro+ its discover3& and if %ased on lacA of 4urisdiction& %efore lac(es or esto**el %ars t(e *etition. #7trinsic fraud is not a valid ground if suc( fraud 'as used as a ground& or could (ave %een used as a ground& in a +otion for ne' trial or *etition for relief fro+ 4udg+ent. !rs. CereBo insists t(at lacA of 4urisdiction& not e7trinsic fraud& 'as (er ground for filing t(e *etition for annul+ent of 4udg+ent. ;o'ever& a *art3 +a3 avail of t(e re+ed3 of annul+ent of 4udg+ent under Rule onl3 if t(e ordinar3 re+edies of ne' trial& a**eal& *etition for relief fro+ 4udg+ent& or ot(er a**ro*riate re+edies are no longer availa%le t(roug( no fault of

WEE V /ALVEZ @#,p"%A FACTS

t(is is regards t(e sisters& one in IS and one in RP '(o is taAing care of t(e son of t(e sister in IS. Allo'ance issuesX ON MANNER OF MAFIN/ ALLE/ATIONS etitioners su%+it t(at t(e a+ended co+*laint violates Rule ?& Section 100 of t(e 1//: Rules of Civil Procedure& as t(ere is no *lain and direct state+ent of t(e ulti+ate facts on '(ic( t(e *laintiff relies for (er clai+. S*ecificall3& *etitioners contend t(at t(e allegation in *aragra*( / A of t(e a+ended co+*laint t(at ,#arnest efforts to'ards (ave %een +ade %ut t(e sa+e (ave failed, is clearl3 insufficient. )(e sentence is inco+*lete& t(us re1uires t(e reader of t(e *leading to engage in deductions or inferences in order to get a co+*lete sense of t(e cause of action& according to *etitioners. Res*ondent re%uts %3 stating t(at t(e a+ended co+*laint as 'ell as t(e anne7es attac(ed to t(e *leadings s(ould %e taAen in t(eir entiret3. )(us taAen toget(er& in t(eir entiret3& t(e a+ended co+*laint and t(e attac(+ents to t(e original co+*laint& clearl3 s(o' t(at a sufficient cause of action as it is s(o'n and stated t(at earnest efforts to'ards a co+*ro+ise (ave %een +ade& according to res*ondent. A *aragra*( is ,a distinct section or su%division of a 'ritten or *rinted co+*osition t(at consists of fro+ one to +an3 sentences& for+s a r(etorical unit. As a ,s(ort co+*osition consisting of a grou* of sentences dealing 'it( a single to*ic&, a *aragra*( +ust necessaril3 %e construed in its entiret3 in order to *ro*erl3 derive t(e +essage soug(t to %e conve3ed. In t(e instant case& *aragra*( / A of t(e A+ended Co+*laint deals 'it( t(e to*ic of efforts +ade %3 t(e res*ondent to reac( a co+*ro+ise %et'een t(e *arties. ;ence& it is in t(is lig(t t(at t(e defective lead sentence +ust %e understood or construed. ;aving e7a+ined t(e A+ended Co+*laint in its entiret3 as 'ell as t(e docu+ents attac(ed t(ereto& follo'ing t(e rule t(at docu+ents attac(ed to a *leading are considered %ot( as evidence and as *art of t(e *leading& 'e find t(at t(e res*ondent (as

Civil Procedure Digest

t(e *art3. !rs. CereBo could (ave availed of a ne' trial or a**eal %ut t(roug( (er o'n fault s(e erroneousl3 availed of t(e re+ed3 of a *etition for relief& '(ic( 'as denied 'it( finalit3. )(us& !rs. CereBo +a3 no longer avail of t(e re+ed3 of annul+ent. Di#p!#i i!n P#)I)IO< D#<I#D.

A2010 Avena
conse1uences of dela3 in t(e filing of t(eir ans'er., On t(e sa+e date& -e%ruar3 15& 2001& *etitioners filed a +otion to ad+it ans'er& as 'ell as t(e ans'er. In an order dated -e%ruar3 19& 2001& res*ondent 4udge disregarded *etitioners2 o**osition to !etro%anA2s +otion for default On -e%ruar3 1/& 2001& !etro%anA filed an o**osition to *etitioners2 +otion to ad+it ans'er& arguing t(at said +otion 'as rendered +oot and acade+ic %3 t(e -e%ruar3 12& 2001 order. !etro%anA also c(ided *etitioners for violating t(e t(ree da3 notice rule under Sec. 4& Rule 15 of t(e 1//: Rules of Civil Procedure. In an order dated -e%ruar3 20& 2001& t(e +otion to ad+it ans'er 'as denied. On -e%ruar3 2:& 2001& *etitioners filed a +otion to lift t(e order of default$ !etro%anA o**osed t(e +otion. On !arc( 2& 2001& res*ondent 4udge issued an order (olding in a%e3ance t(e e%.parte rece*tion of evidence *ending resolution of *etitioners2 +otion to lift t(e order of default. On !arc( 5& 2001& res*ondent 4udge issued an order den3ing *etitioners2 +otion to lift t(e order of default and setting t(e rece*tion of !etro%anA2s evidence on !arc( :& 2001& as *reviousl3 sc(eduled. On t(at date 5!arc( :& 20016& !etro%anA *resented its evidence and t(e case 'as su%+itted for decision. Petitioners +oved for reconsideration of t(e !arc( 5& 2001 order %ut t(eir +otion 'as denied. Petitioners filed a Petition for Certiorari 'it( t(e CA ascri%ing grave a%use of discretion co++itted %3 t(e trial court a+ounting to lacA of 4urisdiction in issuing t(e Orders& declaring t(e+ in default and den3ing t(eir O**osition to !etro*olitan 8anA and )rust Co+*an32s 5!etro%anA6 !otion to Declare t(e+ in Default$ and t(e Orders den3ing t(eir !otion to "ift t(e Order of Default and t(eir !otion for Reconsideration. CA denied t(e *etition for lacA of +erit and accordingl3 dis+issed t(e sa+e. )(e CA did not find t(e e7cuse *roffered %3 *etitioners. It also ruled t(at for an order of default to %e set aside& *etitioners +ust (ave a +eritorious defense or t(at so+et(ing could -

Prof. Victoria A.

52

SPOUSES DELOS SANTOS VS RTC @HON. EMMANUEL C. CARPIOA /.R. NO. 3415>5 AUSTRIA-MARTINEZ? Sep eD7e" 33, 9BB5
NATURE? Petition for revie' on certiorari under Rule 45 of t(e Rules of Court FACTS? On .anuar3 0& 2001& !etro*olitan 8anA and )rust Co+*an3 5or ,!etro%anA,6 filed a co+*laint for su+ of +one3 against s*ouses ;u+%erto and Car+encita delos Santos 5or ,*etitioners,6 %efore t(e Regional )rial Court of Davao Cit3. On .anuar3 22& 2001& *etitioners 'ere served 'it( t(e su++ons& toget(er 'it( a co*3 of t(e co+*laint. As *etitioners failed to file an ans'er 'it(in t(e regle+entar3 *eriod& !etro%anA& on -e%ruar3 ?& 2001& filed a +otion to declare t(e+ in default. )(e +otion 'as set for (earing on -e%ruar3 19& 2001. Acting on t(e +otion& t(e lo'er court& *resided over %3 ;on. #++anuel C. Car*io 5or ,res*ondent 4udge,6& issued an order dated -e%ruar3 12& 2001 declaring *etitioners in default and setting t(e e%. parte *resentation of !etro%anAQs evidence on !arc( :& 2001. On -e%ruar3 15& 2001& *etitioners filed an o**osition to !etro%anA2s +otion to declare t(e+ in default& clai+ing t(at u*on recei*t of t(e su++ons& t(e3 i++ediatel3 soug(t t(e services of Att3. P(ili* Panto4an %ut it 'as onl3 on -e%ruar3 12& 2001 t(at t(e3 'ere a%le to +eet 'it( Att3. Panto4an. Petitioners alleged t(at not %eing ,learned in la',& t(e3 'ere una'are ,of t(e

%e gained %3 (aving t(e order of default set aside )(e CA furt(er found un+eritorious t(e contention of *etitioners t(at t(e3 'ere declared in default 'it(out giving t(e+ a+*le ti+e to file an o**osition to !etro%anA2s !otion to Declare t(e+ in Default$ t(at under Section 0& Rule / of t(e Rules of Court& it is *rovided t(at t(e court s(all& u*on +otion of t(e clai+ing *art3 'it( notice to t(e defending *art3 in default& and *roof of suc( failure& declare t(e defending *art3 in default$ and t(at since it is clear fro+ t(e records t(at t(e regle+entar3 *eriod for filing an ans'er (ad e7*ired 'it( no res*onsive *leading filed %3 *etitioners& t(e trial court (ad *ro*erl3 declared t(e+ in default. )(e CA furt(er declared t(at even assu+ing t(at t(e trial court co++itted a *rocedural la*se in declaring *etitioners in default %efore t(e sc(eduled (earing of !etro%anA2s +otion& suc( error is not so serious as to constitute grave a%use of discretion.

ISSUE? 1. >O< "I)IS P#<D#<)IA raised %3 *etitioners as an affir+ative defense is a +eritorious defense. HELD? 3. YES ReasoningSection 0& Rule / of t(e Rules of Court *rovides@ Sec. 0. 3efault; declaration of If t(e defending *art3 fails to ans'er 'it(in t(e ti+e allo'ed t(erefor& t(e court s(all& u*on +otion of t(e clai+ing *art3 'it( notice to t(e defending *art3& and *roof of suc( failure& declare t(e defending *art3 in default. )(ereu*on& t(e court s(all *roceed to render 4udg+ent granting t(e clai+ant suc( relief as (is *leading +a3 'arrant& unless t(e court in its discretion re1uires t(e clai+ant to su%+it evidence. Suc( rece*tion of evidence +a3 %e delegated to t(e clerA of court. Clearl3& t(ere are t(ree re1uire+ents '(ic( +ust %e co+*lied 'it( %3 t(e clai+ing *art3 %efore t(e court +a3 declare t(e defending *art3 in default& to 'it@ 516 t(e clai+ing *art3 +ust file a +otion asAing t(e court to declare t(e defending *art3 in default$ 526 t(e defending *art3 +ust %e notified of t(e +otion to declare (i+ in default$ 506 t(e

Civil Procedure Digest

clai+ing *art3 +ust *rove t(at t(e defending *art3 (as failed to ans'er 'it(in t(e *eriod *rovided %3 t(e Rule. In filing +otions& Section 4& Rule 15 of t(e Rules of Court& s*ecificall3 *rovides@ Sec. 4. Gearing of motion. #7ce*t for +otions '(ic( t(e court +a3 act u*on 'it(out *re4udicing t(e rig(ts of t(e adverse *art3& ever3 'ritten +otion s(all %e set for (earing %3 t(e a**licant. Prior to t(e *resent rule on default introduced %3 t(e 1//: Rules of Civil Procedure& as a+ended& Section 1 of t(e for+er Rule 1? on default is silent on '(et(er or not t(ere is need for a notice of a +otion to declare defendant in default. )(e Court t(en ruled t(at t(ere is no need. ;o'ever& t(e *resent rule e7*ressl3 re1uires t(at t(e +otion of t(e clai+ing *art3 s(ould %e 'it( notice to t(e defending *art3. )(e *ur*ose of a notice of a +otion is to avoid sur*rises on t(e o**osite *art3 and to give (i+ ti+e to stud3 and +eet t(e argu+ents. )(e notice of a +otion is re1uired '(en t(e *art3 (as t(e rig(t to resist t(e relief soug(t %3 t(e +otion and *rinci*les of natural 4ustice de+and t(at (is rig(t %e not affected 'it(out an o**ortunit3 to %e (eard. )(erefore& as t(e *resent rule on default re1uires t(e filing of a +otion and notice of suc( +otion to t(e defending *art3& it is not enoug( t(at t(e defendant failed to ans'er t(e co+*laint 'it(in t(e regle+entar3 *eriod to %e a sufficient ground for declaration in default. Disposition. Petition for revie' is /RANTED. )(e Decision of t(e Court of A**ealsis REVERSED and SET ASIDE. )(e Order of Default of t(e Regional )rial Court is SET ASIDE and t(e Ans'er filed %3 *etitioners is dee+ed ADMITTED. )(e trial court is DIRECTED to continue 'it( deli%erate s*eed 'it( t(e *roceedings in t(e case %elo'. SPOUSES DELOS SANTOS VS RTC @HON. EMMANUEL C. CARPIOA /.R. NO. 3415>5 AUSTRIA-MARTINEZ? Sep eD7e" 33, 9BB5 NATURE?

A2010 Avena
Petition for revie' on certiorari under Rule 45 of t(e Rules of Court FACTS? On .anuar3 0& 2001& !etro*olitan 8anA and )rust Co+*an3 5or ,!etro%anA,6 filed a co+*laint for su+ of +one3 against s*ouses ;u+%erto and Car+encita delos Santos 5or ,*etitioners,6 %efore t(e Regional )rial Court of Davao Cit3. On .anuar3 22& 2001& *etitioners 'ere served 'it( t(e su++ons& toget(er 'it( a co*3 of t(e co+*laint. As *etitioners failed to file an ans'er 'it(in t(e regle+entar3 *eriod& !etro%anA& on -e%ruar3 ?& 2001& filed a +otion to declare t(e+ in default. )(e +otion 'as set for (earing on -e%ruar3 19& 2001. Acting on t(e +otion& t(e lo'er court& *resided over %3 ;on. #++anuel C. Car*io 5or ,res*ondent 4udge,6& issued an order dated -e%ruar3 12& 2001 declaring *etitioners in default and setting t(e e%. parte *resentation of !etro%anAQs evidence on !arc( :& 2001. On -e%ruar3 15& 2001& *etitioners filed an o**osition to !etro%anA2s +otion to declare t(e+ in default& clai+ing t(at u*on recei*t of t(e su++ons& t(e3 i++ediatel3 soug(t t(e services of Att3. P(ili* Panto4an %ut it 'as onl3 on -e%ruar3 12& 2001 t(at t(e3 'ere a%le to +eet 'it( Att3. Panto4an. Petitioners alleged t(at not %eing ,learned in la',& t(e3 'ere una'are ,of t(e conse1uences of dela3 in t(e filing of t(eir ans'er., On t(e sa+e date& -e%ruar3 15& 2001& *etitioners filed a +otion to ad+it ans'er& as 'ell as t(e ans'er. In an order dated -e%ruar3 19& 2001& res*ondent 4udge disregarded *etitioners2 o**osition to !etro%anA2s +otion for default On -e%ruar3 1/& 2001& !etro%anA filed an o**osition to *etitioners2 +otion to ad+it ans'er& arguing t(at said +otion 'as rendered +oot and acade+ic %3 t(e -e%ruar3 12& 2001 order. !etro%anA also c(ided *etitioners for violating t(e t(ree da3 notice rule under Sec. 4& Rule 15 of t(e 1//: Rules of Civil Procedure. In an order dated -e%ruar3 20& 2001& t(e +otion to ad+it ans'er 'as denied. -

Prof. Victoria A.

5;

On -e%ruar3 2:& 2001& *etitioners filed a +otion to lift t(e order of default$ !etro%anA o**osed t(e +otion. On !arc( 2& 2001& res*ondent 4udge issued an order (olding in a%e3ance t(e e%.parte rece*tion of evidence *ending resolution of *etitioners2 +otion to lift t(e order of default. On !arc( 5& 2001& res*ondent 4udge issued an order den3ing *etitioners2 +otion to lift t(e order of default and setting t(e rece*tion of !etro%anA2s evidence on !arc( :& 2001& as *reviousl3 sc(eduled. On t(at date 5!arc( :& 20016& !etro%anA *resented its evidence and t(e case 'as su%+itted for decision. Petitioners +oved for reconsideration of t(e !arc( 5& 2001 order %ut t(eir +otion 'as denied. Petitioners filed a Petition for Certiorari 'it( t(e CA ascri%ing grave a%use of discretion co++itted %3 t(e trial court a+ounting to lacA of 4urisdiction in issuing t(e Orders& declaring t(e+ in default and den3ing t(eir O**osition to !etro*olitan 8anA and )rust Co+*an32s 5!etro%anA6 !otion to Declare t(e+ in Default$ and t(e Orders den3ing t(eir !otion to "ift t(e Order of Default and t(eir !otion for Reconsideration. CA denied t(e *etition for lacA of +erit and accordingl3 dis+issed t(e sa+e. )(e CA did not find t(e e7cuse *roffered %3 *etitioners. It also ruled t(at for an order of default to %e set aside& *etitioners +ust (ave a +eritorious defense or t(at so+et(ing could %e gained %3 (aving t(e order of default set aside )(e CA furt(er found un+eritorious t(e contention of *etitioners t(at t(e3 'ere declared in default 'it(out giving t(e+ a+*le ti+e to file an o**osition to !etro%anA2s !otion to Declare t(e+ in Default$ t(at under Section 0& Rule / of t(e Rules of Court& it is *rovided t(at t(e court s(all& u*on +otion of t(e clai+ing *art3 'it( notice to t(e defending *art3 in default& and *roof of suc( failure& declare t(e defending *art3 in default$ and t(at since it is clear fro+ t(e records t(at t(e regle+entar3 *eriod for filing an ans'er (ad e7*ired 'it( no res*onsive *leading filed %3 *etitioners& t(e trial court (ad *ro*erl3 declared t(e+ in default. )(e CA furt(er declared t(at even

Civil Procedure Digest

assu+ing t(at t(e trial court co++itted a *rocedural la*se in declaring *etitioners in default %efore t(e sc(eduled (earing of !etro%anA2s +otion& suc( error is not so serious as to constitute grave a%use of discretion. ISSUE? 1. >O< "I)IS P#<D#<)IA raised %3 *etitioners as an affir+ative defense is a +eritorious defense. HELD? 3. YES ReasoningSection 0& Rule / of t(e Rules of Court *rovides@ Sec. 0. 3efault; declaration of If t(e defending *art3 fails to ans'er 'it(in t(e ti+e allo'ed t(erefor& t(e court s(all& u*on +otion of t(e clai+ing *art3 'it( notice to t(e defending *art3& and *roof of suc( failure& declare t(e defending *art3 in default. )(ereu*on& t(e court s(all *roceed to render 4udg+ent granting t(e clai+ant suc( relief as (is *leading +a3 'arrant& unless t(e court in its discretion re1uires t(e clai+ant to su%+it evidence. Suc( rece*tion of evidence +a3 %e delegated to t(e clerA of court. Clearl3& t(ere are t(ree re1uire+ents '(ic( +ust %e co+*lied 'it( %3 t(e clai+ing *art3 %efore t(e court +a3 declare t(e defending *art3 in default& to 'it@ 516 t(e clai+ing *art3 +ust file a +otion asAing t(e court to declare t(e defending *art3 in default$ 526 t(e defending *art3 +ust %e notified of t(e +otion to declare (i+ in default$ 506 t(e clai+ing *art3 +ust *rove t(at t(e defending *art3 (as failed to ans'er 'it(in t(e *eriod *rovided %3 t(e Rule. In filing +otions& Section 4& Rule 15 of t(e Rules of Court& s*ecificall3 *rovides@ Sec. 4. Gearing of motion. #7ce*t for +otions '(ic( t(e court +a3 act u*on 'it(out *re4udicing t(e rig(ts of t(e adverse *art3& ever3 'ritten +otion s(all %e set for (earing %3 t(e a**licant. Prior to t(e *resent rule on default introduced %3 t(e 1//: Rules of Civil Procedure& as a+ended& Section 1 of t(e for+er Rule 1? on default is silent on '(et(er or not t(ere is need for a notice of a +otion to declare defendant in default. )(e Court t(en ruled t(at t(ere is no need. ;o'ever& t(e *resent rule e7*ressl3 re1uires t(at t(e +otion of t(e clai+ing

A2010 Avena
*art3 s(ould %e 'it( notice to t(e defending *art3. )(e *ur*ose of a notice of a +otion is to avoid sur*rises on t(e o**osite *art3 and to give (i+ ti+e to stud3 and +eet t(e argu+ents. )(e notice of a +otion is re1uired '(en t(e *art3 (as t(e rig(t to resist t(e relief soug(t %3 t(e +otion and *rinci*les of natural 4ustice de+and t(at (is rig(t %e not affected 'it(out an o**ortunit3 to %e (eard. )(erefore& as t(e *resent rule on default re1uires t(e filing of a +otion and notice of suc( +otion to t(e defending *art3& it is not enoug( t(at t(e defendant failed to ans'er t(e co+*laint 'it(in t(e regle+entar3 *eriod to %e a sufficient ground for declaration in default.

Prof. Victoria A.

5>

Disposition. Petition for revie' is /RANTED. )(e Decision of t(e Court of A**ealsis REVERSED and SET ASIDE. )(e Order of Default of t(e Regional )rial Court is SET ASIDE and t(e Ans'er filed %3 *etitioners is dee+ed ADMITTED. )(e trial court is DIRECTED to continue 'it( deli%erate s*eed 'it( t(e *roceedings in t(e case %elo'.

'as not evidenced %3 an3 'ritten docu+ent& eit(er *u%lic or *rivateL& and t(e co+*laint 'as FDefective on its faceL for violating CC A 1059 and 105?11& as 'ell as for containing defective allege& *etitions. Plaintiff soug(t reconsideration of t(e dis+issal& and for ad+ission of an a+ended co+*laint& attac(ed to t(e +otion court denied t(e reconsideration and t(e leave to a+end. a second reconsideration 'as filed court denied it as its allegations 'ere +ore or less t(e sa+e as t(e first +otion& and not acco+*anied %3 an affidavit of +erits. )(e court furt(er declared t(e dis+issal final and una**eala%le. (ence t(is *etition t(e res*ondent court2s defense@ )(e *ro*osed a+end+ent suffers fro+ t(e sa+e vital defect of t(e original co+*laint& '(ic( is violation of A 1059 %ecause t(e contract sued u*on 'as not alleged to %e in 'riting& and A 105? in %ecause t(e 'riting 'as a%solute and indis*ensa%le %ecause t(e a+ount e7ceeds P500$ and t(at t(e second +otion for reconsideration did not interru*t t(e *eriod for a**eal %ecause it 'as not served on 0 da3s2 notice. ISSUES 1. >O< t(e *laintiff *etitioner 'as entitled as of rig(t to a+end t(e original dis+issed co+*laint
11 Article 1059. Contracts s(all %e o%ligator3& in '(atever for+ t(e3 +a3 (ave %een entered

STRIFIN/ OUT PLEADIN/S DAUDEN-HERNAEZ V AN/ELES, HOLLYWOOD FAR EAST PRODUCTIONS, INC., %n) VALENZUELA 92 SCRA 3925 REYES, J.B.L.= Ap"i* 1B, 3>5>
NATURE Petition for a 'rit of certiorari to set aside certain orders of t(e C-I dis+issing a co+*laint for %reac( of contract and da+ages& den3ing reconsideration& refusing to ad+it an a+ended co+*laint& and declaring t(e dis+issal final and una**eala%le. FACTS Petitioner& actress Dauden ;ernaeB& files a co+*laint to recover P14&:00 5t(e %alance allegedl3 due to (er for (er services as leading actress6& *lus da+ages& against *rivate res*ondents ;oll3'ood -ar #ast Productions 5;-#P6 and its President ValenBuela I*on +otion of defendants& res*ondent court dis+issed t(e co+*laint %ecause Fclai+ of *laintiff

into& *rovided all t(e essential re1uisites for t(eir validit3 are *resent. ;o'ever& '(en t(e la' re1uires t(at a contract %e in so+e for+ in order t(at it +a3 %e valid or enforcea%le& or t(at a contract %e *roved in a certain 'a3& t(at re1uire+ent is a%solute and indis*ensa%le. In suc( cases& t(e rig(t of t(e *arties stated in t(e follo'ing article cannot %e e7ercised.

Article 105?. )(e follo'ing +ust a**ear in a *u%lic docu+ent@ 516 Acts and contracts '(ic( (ave for t(eir o%4ect t(e creation& trans+ission& +odification or e7tinguis(+ent of real rig(ts over i++ova%le *ro*ert3$ sales of real *ro*ert3 or of an interest t(erein are governed %3 articles 1400& <o. 2& and 1405$ 526 )(e cession& re*udiation or renunciation of (ereditar3 rig(ts or of t(ose of t(e con4ugal *artners(i* of gains$ 506 )(e *o'er to ad+inister *ro*ert3& or an3 ot(er *o'er '(ic( (as for its o%4ect an act a**earing or '(ic( s(ould a**ear in a *u%lic docu+ent& or s(ould *re4udice a t(ird *erson$ 546 )(e cession of actions or rig(ts *roceeding fro+ an act a**earing in a *u%lic docu+ent.

All ot(er contracts '(ere t(e a+ount involved e7ceeds five (undred *esos +ust a**ear in 'riting& even a *rivate one. 8ut sales of goods& c(attels or t(ings in action are governed %3 articles& 1400& <o. 2 and 1405. 512?0a6

Civil Procedure Digest

2. >O< 777 HELD 1.C#S Reasoning )'(en a court sustains a de+urrer or +otion to dis+iss& t(e court +ust give t(e *art3 *laintiff an o**ortunit3 to a+end (is co+*laint if (e so c(ooses. )(e first order of dis+issal did not *rovide t(at t(e sa+e 'as 'it(out *re4udice to a+end+ent of t(e co+*laint& or reserve to t(e *laintiff t(e rig(t to a+end (is co+*laint& so t(e order 'as erroneous. ;ence& *etitioner 'as 'it(in (er rig(ts in filing (er so called second +otion for reconsideration& '(ic( 'as actuall3 a first +otion against t(e refusal to ad+it t(e a+ended co+*laint. Also& since a +otion to dis+iss is not a res*onsive *leading& t(e *laintiff *etitioner 'as entitled as of rig(t to a+end t(e original dis+issed co+*laint. Paeste v .aurigue@ FA+end+ents to *leadings are favored and s(ould %e li%erall3 allo'ed in t(e furt(erance of 4ustice. 5)orres vs. )o+acruB& 4/ P(il. /106. !oreover& under section 1 of Rule 1:& Rules of Court& a *art3 +a3 a+end (is *leading once as a +atter of course& t(at is& 'it(out leave of court& at an3 ti+e %efore a res*onsive *leading is served. A +otion to dis+iss is not a ,res*onsive *leading,. 5!oran on t(e Rules of Court& vol. 1& 1/52& ed.& *. 0:96. As *laintiffs a+ended t(eir co+*laint %efore it 'as ans'ered& t(e +otion to ad+it t(e a+end+ent s(ould not (ave %een denied.L Disposition )(e order dis+issing t(e co+*laint is set aside& and t(e case is ordered re+anded to t(e court of origin for furt(er *roceedings not at variance 'it( t(is decision.

A2010 Avena
)(e co+*laint alleged& a+ong ot(ers& t(at@ 5i6 *etitioner issued 5 "etters of =uarantee in favor of t(e P(ili**ine <ational 8anA 5P<86 as securit3 for credit acco++odations e7tended %3 P<8 to PII$ 5ii6 PII& 8- ;o+es& PDC and Aguirre e7ecuted a Deed of IndertaAing %inding t(e+selves& 4ointl3 and severall3& to *a3 or rei+%urse *etitioner u*on de+and suc( a+ount of +one3 or to re*air t(e da+ages& losses or *enalties '(ic( *etitioner +a3 *a3 or suffer on account of its guarantees$ 5iii6 on A*ril 24& 1/?5& P<8 called on t(e guarantees of *etitioner$ 5iv6 t(ereafter& *etitioner de+anded fro+ PII t(e i++ediate settle+ent of P20&/5/&52/.09& re*resenting t(e aggregate a+ount of t(e guarantees of *etitioner called %3 P<8 and t(e furt(er su+ of P051&51:.5: re*resenting various fees and c(arges$ 5v6 PII refused to settle said o%ligations$ 5vi6 res*ondents Solid and P8AC also refused to *a3 *etitioner des*ite de+and. Res*ondent 8- ;o+es filed a !otion to Dis+iss on t(e ground t(at it is undergoing re(a%ilitation receivers(i* in t(e S#C and *ursuant to P.D. /02 A& t(e trial court (as no 4urisdiction to tr3 t(e case. Res*ondent PII also filed a !otion to Dis+iss on t(e ground t(at t(e co+*laint states no cause of action. )(e ot(er res*ondents filed t(eir res*ective res*onsive *leadings. )(e trial court& t(roug( .udge Ro%erto !. "ag+an& issued an Order sus*ending t(e case onl3 as against res*ondent 8- ;o+es and den3ing res*ondent PIIDs +otion to dis+iss. )(ereafter& (earing on t(e +erits ensued. During trial& *etitioner *resented Rosauro )er+ulo& its treasur3 de*art+ent +anager& '(o testified t(at t(e a+ount of P1/&005&259.5: 'as *aid %3 *etitioner to t(e P<8 t(roug( t(e account of t(e <ational )reasur3 to cover t(e *rinci*al loan and interests incurred %3 PII. Conse1uentl3& *etitioner filed a !otion to A+end Co+*laint to Confor+ to #vidence *ursuant to Section 5& Rule 10 of t(e Revised Rules of Court& seeAing to a+end t(e *ertinent *ortions of t(e co+*laint insofar as it refers to t(e fact of *a3+ent and t(e a+ount *aid %3 *etitioner to P<8. Acting on t(e +otion to a+end& t(e trial court& at t(at ti+e *resided %3 .udge .oselito .. Dela Rosa& issued t(e assailed Order& dis+issing t(e case 'it(out *re4udice on t(e ground of failure of t(e co+*laint to state a cause of action& t(us in effect& reversing t(e Order issued %3 .udge "ag+an five 3ears earlier. PetitionerDs +otion for reconsideration of t(e order of dis+issal 'as denied %3 .udge de la

Prof. Victoria A.

2B

Rosa. Su%se1uentl3& *etitioner filed 'it( t(e Su*re+e Court a *etition for certiorari against t(e trial court. )(e SC issued referred t(e case to t(e Court of A**eals for dis*osition. )(e Court of A**eals dis+issed t(e *etition and denied *etitioner2s +otion for reconsideration. ;ence& t(is *etition. ISSUES? 516 >O< an order dis+issing a *etition 'it(out *re4udice s(ould %e a**ealed %3 'a3 of ordinar3 a**eal$ 526 >O< t(e Court of A**eals erred in affir+ing t(e dis+issal of t(e co+*laint on t(e ground t(at *etitioner failed to state a cause of action for not alleging loss or actual *a3+ent +ade %3 it to P<8 under its guarantees$ 506 >O< t(e co+*laint stated a cause of action. HELD? 516 <O 5under t(e 1//: Rules of Civil Procedure6. Prior to t(e 1//: Rules of Civil Procedure& an order dis+issing an action +a3 %e a**ealed %3 ordinar3 a**eal. ;o'ever& under Section 15(6& Rule 41 of t(e 1//: Rules of Civil Procedure& no a**eal +a3 %e taAen fro+ an order dis+issing an action 'it(out *re4udice. It +a3 %e su%4ect of a s*ecial civil action for certiorari under Rule 95 of t(e 1//: Rules of Civil Procedure. Considering t(at t(e assailed decision of t(e Court of A**eals 'as *ro+ulgated in 1//4& res*ondent a**ellate court could not (ave co++itted an3 grave a%use of discretion in dis+issing CA =.R. SP <o. 014?0. Ne'e" -e*e##, in -e -i+-e" in e"e# !& #,7# %n i%* .,# ice %n) p,"#,%n ! -e -!"n7!!8 )!c "ine -% p"!ce),"%* *%K# D%( 7e %pp*ie) "e "!%c i'e*(, 35 -e C!," +i'e# ),e c!,"#e ! -e p"e#en pe i i!n. 526 C#S. It s(ould %e stressed t(at t(e a+end+ent of t(e co+*laint 'as soug(t after *etitioner (ad alread3 *resented evidence& +ore s*ecificall3& t(e testi+on3 of *etitionerDs )reasur3 De*art+ent !anager and a de%it +e+o fro+ t(e P<8 *roving t(at *etitioner (ad *aid t(e P<8 in t(e a+ount of P1/&005&259.5: *ursuant to t(e guarantees it accorded to res*ondent PII. )(e record s(o's t(at res*ondents did not raise an3 o%4ection '(en it *resented evidence to *rove *a3+ent to P<8. ;ence& as *rovided for in Section 5& Rule 10 of t(e Revised Rules of Court& '(en issues not raised %3 t(e *leadings are tried %3 e7*ress or i+*lied consent of t(e *arties& t(e3 s(all %e treated

PHILIPPINE EOPORT '#. PHILIPPINE INFRASTRUCTURES, INC. =.R. <o. 1200?4 AIS)RIA !AR)I<#S$ .anuar3 10& 2004
NATURE? Petition for revie' on certiorari 5Rule 456 FACTS? Petitioner filed a co+*laint for collection of su+ of +one3 against res*ondents P(ili**ine Infrastructures& Inc. 5PII6& P(ili**ine 8ritis( Assurance Co.& Inc. 5P8AC6& )(e Solid =uarant3& Inc. 5Solid6& 8.-. ;o+es& Inc. 58- ;o+es6& Pilar Develo*+ent Cor*oration 5PDC6 and )o+as 8. Aguirre 5Aguirre6.

Civil Procedure Digest

in all res*ects& as if t(e3 (ad %een raised in t(e *leadings. A scrutin3 of t(e *leadings filed %3 res*ondents reveal t(at none of t(e+ denied *etitionerDs clai+ t(at said evidence 'as *resented %efore t(e trial court 'it(out o%4ections (aving %een raised %3 res*ondents. <one of t(e+ clai+ed t(at t(e3 raised an3 o%4ections at t(e ti+e '(en *etitioner *resented its evidence to *rove its *a3+ent to P<8. Res*ondents Pilar and Aguirre ad+itted t(e *resentation of t(e said evidence. Res*ondents contend t(at since t(e3 (ad alread3 alleged t(e failure of t(e co+*laint to state a cause of action as an affir+ative defense in t(eir ans'er& t(ere 'as no furt(er need for t(e+ to raise an o%4ection at t(e ti+e t(e evidence 'as introduced. )(is is not *lausi%le. It is settled t(at even if the co$plaint &e defective( &ut the parties go to trial thereon( and the plaintiff( without o&jection( introduces sufficient evidence to constitute the particular cause of action which it intended to allege in the original co$plaint( and the defendant voluntaril% produces witnesses to $eet the cause of action thus esta&lished( an issue is joined as full% and as effectivel% as if it had &een previousl% joined %3 t(e +ost *erfect *leadings. "iAe'ise& '(en issues not raised %3 t(e *leadings are tried %3 e7*ress or i+*lied consent of t(e *arties& t(e3 s(all %e treated in all res*ects as if t(e3 (ad %een raised in t(e *leadings. Res*ondentsD failure to o%4ect to t(e evidence at t(e ti+e it is *resented in court is fatal to t(eir cause inas+uc( as '(atever *erceived defect t(e co+*laint (ad 'as cured %3 t(e introduction of *etitionerDs evidence *roving actual loss sustained %3 *etitioner due to *a3+ent +ade %3 it to P<8. 506 C#S. PetitionerDs cause of action against res*ondents ste++ed fro+ t(e o%ligation of res*ondents under t(eir Deed of IndertaAing& a co*3 of '(ic( 'as attac(ed to t(e co+*laint. In t(e *resent *etition& *etitioner (ad %eco+e lia%le to *a3 t(e a+ounts covered %3 said guarantees '(en& as t(e original co+*laint alleges& t(e P<8 called u*on said guarantees. Res*ondentsD o%ligation under t(e Deed of IndertaAing to Aee* *etitioner free and (ar+less fro+ an3 da+age or lia%ilit3 t(en %eca+e o*erative as soon as t(e lia%ilit3 of *etitioner arose and t(ere 'as no need for *etitioner to first sustain actual loss %efore it could (ave a cause of action

A2010 Avena
against res*ondents. )(e +ere inclusion in *etitionerDs original co+*laint of t(e allegation t(at t(e P<8 (ad alread3 called on t(e guarantees of *etitioner is sufficient to constitute a cause of action against res*ondents. Clearl3 t(erefore& t(e original co+*laint& %3 itself& stated a valid cause of action. DISPOSITIVE@ )(e *etition is =RA<)#D. "et t(e original records of Civil Case <o. ?9 0?19/ %e R#!A<D#D to t(e Regional )rial Court 58ranc( 2/6& !anila& for continuation of t(e trial on t(e +erits.

Prof. Victoria A.

23

of !a7i+o 8orro+eo on .anuar3 20& 1/05. )(e +ining clai+s conve3ed %3 !a7i+o 8orro+eo& to Surigao !ining under #7(i%it O / 'ere t(e sa+e clai+s ac1uired %3 !a7i+o 8orro+eo& under #7(i%it O :. 8efore Surigao !ining could close its evidence& t(e defendants +oved for t(e dis+issal of t(e co+*laint on t(e ground t(at& '(en t(e action 'as co++enced& *laintiffDs rig(t of action (ad not 3et accrued& since t(e *laintiff did not %eco+e t(e o'ner of t(e clai+s until after t(e original co+*laint 'as filed on Octo%er 24& 1/05. )(e C-I granted t(e !)D. ISSUE 1. >O< t(e lo'er court erred in dis+issing t(e co+*laint HELD 1. <O. Ratio Inless t(e *laintiff (as a valid and su%sisting cause of action at t(e ti+e (is action is co++enced& t(e defect cannot %e cured or re+edied %3 t(e ac1uisition or accrual of one '(ile t(e action is *ending& and a su**le+ental co+*laint or an a+end+ent setting u* suc( later accrued cause of action is not *er+issi%le. Reasoning Su%4ect to certain 1ualifications and e7ce*t as ot(er'ise *rovided %3 la'& an action co++enced %efore t(e cause of action (as accrued is *re+aturel3 %roug(t and s(ould %e dis+issed& *rovided& an o%4ection on t(is ground is *ro*erl3 and seasona%l3 inter*osed. )(e fact t(at t(e cause of action accrues after t(e action is co++enced and '(ile it is *ending is of no +o+ent. In t(is case& ti+el3 o%4ection 'as +ade %3 counsel for t(e a**ellees u*on discover3 of t(e i++aturit3 of t(e action. )(e date '(en a civil action is dee+ed co++enced is deter+ined %3 section 0?/ of t(e Code of Civil Procedure. Inder section 0?/& '(ic( 'as taAen fro+ section 405 of t(e Code of Civil Procedure of California& t(e action is dee+ed co++enced u*on t(e ,filing of a co+*laint in t(e office of t(e clerA of t(e court in '(ic( t(e action is to %e instituted., )(e original co+*laint 'as filed on Octo%er 24& 1/05. )(e rig(t to a+end a *leading is not an a%solute and unconditional rig(t. It is to %e allo'ed in furt(erance of 4ustice under a sound 4udicial discretion. )(is 4udicial discretion& u*on t(e ot(er (and& is of course not 'it(out an3 restriction. )(e cause of action +ust e7ist at t(e ti+e t(e action 'as %egun& and t(e *laintiff 'ill not %e allo'ed %3 an

SURI/AO MININ/ V HARRIS 5; PHIL 331 LAUREL= M%( 32, 3>1>

NATURE A**eal fro+ t(e order of t(e C-I of Surigao dis+issing t(e co+*laint filed %3 Surigao !ining against ;arris& et al. FACTS On Octo%er 24& 1/05& Surigao !ining filed a co+*laint clai+ing t(at it is t(e o'ner %3 *urc(ase of 14 *lacer clai+s and t(at lode clai+s 'ere staAed %3 t(e defendants ;arris& Surigao !ainit !ining S3ndicate. Surigao Consolidated !ining Co.& Inc.& and Otto >e%er on *laintiffDs *lacer clai+s after t(e latter (ad %een validl3 and dul3 staAed and located %3 t(e *laintiff or its grantors and *redecessors in interest. On <ove+%er 20& 1/05& t(e defendants de+urred to t(e co+*laint on t(e ground t(at t(e co+*laint 'as a+%iguous and unintelligi%le. On .anuar3 /& 1/09 t(e C-I entered an order re1uiring Surigao !ining to a+end its co+*laint so as to contain a detailed descri*tion of its *lacer clai+s. On .anuar3 10& 1/09 an a+ended co+*laint 'as filed to '(ic( anot(er de+urrer 'as inter*osed %ut 'as overruled. On .une 11& 1/09& a t(ird a+ended co+*laint in '(ic( t(irt3 t'o ot(er individuals 'ere included as *arties defendant. In t(is t(ird a+ended co+*laint t(e *lacer clai+s 'ere reduced& to eleven& and t(e relief *ra3ed for 'as a%out t(e sa+e as t(at asAed in t(e original co+*laint& alt(oug( t(e a+ount soug(t as da+ages 'as increased to P4/&000. #7(i%its O and O 1 to 0 / 'ere *resented. >it( t(e e7ce*tion of #7(i%it O :& all are deeds of sale in favor of Surigao !ining covering t(e *lacer clai+s and %ear dates *osterior to 5A-)#R6 Octo%er 24& 1/05& t(e date of t(e filing of t(e original co+*laint. #7(i%it O : is a deed of sale e7ecuted %3 Pa%lo Atillo in favor

Civil Procedure Digest

a+end+ent to introduce a cause of action '(ic( (ad no e7istence '(en t(e action 'as co++enced. As soon as an action is %roug(t and t(e co+*laint is filed& t(e *roceedings t(us initiated are not su%4ect to t(e ar%itrar3 control of t(e *arties or of t(e court& %ut +ust %e dealt 'it( in accordance 'it( recogniBed rules of *leading and *ractice. A+end+ents +ust %e suc(& and onl3 suc(& as are necessar3 to *ro+ote t(e co+*letion of t(e action %egun. It is true& t(at an a+ended co+*laint and t(e ans'er t(ereto taAe t(e *lace of t(e originals '(ic( are t(ere%3 regarded as a%andoned. )(at& (o'ever& '(ic( is no cause of action '(atsoever cannot %3 a+end+ent or su**le+ental *leading %e converted into a cause of action@ <i(il do re accrescit ei 1ui ni(il in re 1uando 4ua accresceret (a%et. Disposition Order a**ealed fro+ is A--IR!#D.

A2010 Avena
dis*uted lot. S*ouses filed t(eir o**osition& contending t(at t(e a+ended co+*laint does not also state a cause of action and if ad+itted& res*ondent2s t(eor3 of t(e case is su%stantiall3 +odified. R)C issued an Order den3ing *etitioners2 +otion to dis+iss. Petitioners filed 'it( t(e CA a s*ecial civil action for certiorari and *ro(i%ition& alleging t(at t(e a+ended co+*laint does not cure t(e defect in t(e original co+*laint '(ic( does not state a cause of action. CA dis+issed t(e *etition for certiorari and *ro(i%ition. Petitioners filed a +otion for reconsideration %ut it 'as denied. ISSUE >O< t(e CA erred in (olding t(at t(e trial court did not co++it grave a%use of discretion a+ounting to lacA or e7cess of 4urisdiction in ad+itting res*ondent2s a+ended co+*laint HELD <O Section 2& Rule 10 of t(e 1//: Rules of Civil Procedure12 s(o's t(at 7e&!"e -e &i*in+ !& %n( "e#p!n#i'e p*e%)in+& a *art3 (as t(e %7#!*, e "i+- to a+end (is *leading& regardless of '(et(er a ne' cause of action or c(ange in t(eor3 is introduced. Petitioners (ad not 3et filed a res*onsive *leading to t(e original co+*laint. >(at t(e3 filed 'as a +otion to dis+iss& '(ic( is not a res*onsive *leading as conte+*lated %3 t(e Rule. )(us res*ondent& as a *laintiff& +a3 file an a+ended co+*laint even after t(e original co+*laint 'as ordered dis+issed& *rovided t(at t(e order of dis+issal is not 3et final& as in t(is case. As to *etitioners2 contention t(at !!CI is %arred fro+ ac1uiring t(e su%4ect lot& suffice it to sa3 t(at t(is is a +atter of defense '(ic( can onl3 %e *ro*erl3 deter+ined during t(e full %lo'n trial of t(e instant case. Dispositive Petition D#<I#D. CA decision affir+ed in toto.

Prof. Victoria A.
INC. V. PRINCIPE /R N!. 3:3:;: AUSTRIA-MARTINEZ= N!' 33, 9BB4
NATURE Petition for revie' on certiorari

29

Fi*in+0 Se"'ice !& p*e%)in+#, .,)+Den # %n) ! -e" p%pe"# BAUTISTA V MAYA-MAYA COTTA/ES INC =.R. <o. 14?091 SA<DOVA" =I)I#RR#S$ <ov. 2/& 2005
NATURE Petition for revie' on certiorari assailing decision and resolution of t(e CA FACTS S*ouses 8autista are t(e registered o'ners of a lot in 8atangas. !!CI. filed 'it( t(e R)C a co+*laint for cancellation of *etitioners2 title and da+ages& 'it( a**lication for a *reli+inar3 in4unction& alleging t(at F'it(out an3 color of rig(t and t(roug( du%ious +eans&L *etitioners 'ere a%le to o%tain original title in t(eir na+es. S*ouses filed a +otion to dis+iss on t(e ground t(at it does not state a cause of action. )(e3 averred t(at res*ondent is a *rivate cor*oration& (ence& dis1ualified under t(e Constitution fro+ ac1uiring *u%lic aliena%le lands e7ce*t %3 lease& and cannot %e considered a real *art3 in interest. R)C granted +otion to dis+iss. !!CI filed a +otion for reconsideration 'it( +otion for leave to file an a+ended co+*laint for 1uieting of title. Res*ondent alleged t(at t(e tec(nical descri*tion in *etitioners2 title does not cover t(e

/CP-MANNY TRANSPORT SERVICES

12 FS#C. 2. A+end+ents as a +atter of rig(t. M A *art3 +a3 a+end (is *leading once as a
+atter of rig(t at an3 ti+e %efore a res*onsive *leading is served or& in t(e case of a re*l3& at an3 ti+e 'it(in ten 5106 da3s after it is served.L

FACTS )(is *etition is filed %3 =CP& seeAing reversal of CA decision. )(e case started '(en RecoliBado filed co+*laint for da+ages for *(3sical in4uries sustained %3 (i+ as *assenger of =CP2s %us. R)C rendered decision in favor of RecoliBado. Co*3 of decision sent to *etitioner 'as returned %ecause it (ad F+ovedL 5residence6& '(ile co*3 sent to Att3. A1uino& t(en *etitioner2s counsel& 'as returned FunservedL %eing unclai+ed. Petitioner states t(at co*3 of decision 'as *ersonall3 delivered %3 Civil DocAet ClerA of )C on Att3. A1uino '(o refused to receive t(e sa+e sa3ing (e 'as no longer counsel for *etitioner& alt(oug( no notice of 'it(dra'al as counsel 'as filed %3 (i+. Private res*ondent filed a +otion for e7ecution of t(e 4udg+ent& co*3 furnis(ed to Att3. Arnold !. A1uino and *etitioner '(ic( t(e court granted. >rit of e7ecution 'as issued& '(ic( *etitioner received. Att3. .ose de "una entered (is a**earance as ne' counsel for t(e *etitioner 'it( +otion for reconsideration of t(e order granting t(e +otion for e7ecution or t(e 1uas(al of t(e 'rit of e7ecution on t(e ground t(at *etitioner (ad not %een dul3 notified. Petitioner received a <otice of De+and for Pa3+ent fro+ t(e de*uties of t(e #7 officio S(eriff of t(e R)C attac(ing t(ereto co*ies of t(e 'rit of e7ecution and t(e decision. *etitioner filed a <otice of A**eal. 2 +os later& res*ondent court issued assailed resolution den3ing *etitioners2 +otion for reconsideration or to 1uas( 'rit of e7ecution. Petitioner 'ent to CA on *etition for certiorari. CA found no a%use of discretion and dis+issed t(e *etition. Reconsideration 'as also denied. ;ence& t(e *resent *etition for revie' on certiorari. Petitioner argues t(at@ '(en a co*3 of t(e decision '(ic( t(e court sent to Att3. A1uino 'as returned to sender& res*ondent .udge resorted in causing t(e service of t(e decision to said counsel in o*en court& as *etitioner2s counsel on record& '(en said la'3er a**eared in t(e sala of res*ondent .udge for anot(er case$ *etitioner s(ould %e dee+ed as (aving no notice of t(e trial court decision since its counsel&

Civil Procedure Digest

'(o (ad not 'it(dra'n as suc(& refused to receive a co*3 of t(e sa+e. >(at t(e civil docAet clerA of t(e trial court s(ould (ave done 'as to resort to su%stituted service. Res*ondent in (is Co++ent contends t(at since Att3. A1uino is counsel of *etitioner and t(ere is not(ing to s(o' t(at (e 'it(dre' as counsel of *etitioner& t(e co*3 of t(e decision +ailed to (i+ %3 registered +ail alt(oug( returned unserved is sufficient to serve as notice to (i+ and to (is client follo'ing Sec. 5 of Rule 10 of RoC$ it 'as t(e dut3 of *etitioner to notif3 t(e court t(at Att3. A1uino 'as no longer its la'3er$ if a la'3er is going to 'it(dra' as counsel for (is client& (e s(ould file a +otion to 'it(dra' as suc( 'it( t(e confor+it3 of t(e client. ISSUE0S >O< CA decision s(ould %e reversed HELD <O Clients are %ound %3 t(e actions of t(eir counsel in t(e conduct of t(eir case. If it 'ere ot(er'ise& and a la'3er2s +istaAe or negligence 'as ad+itted as a reason for t(e o*ening of a case& t(ere 'ould %e no end to litigation so long as counsel (ad not %een sufficientl3 diligent or e7*erienced. )(e onl3 e7ce*tion to t(e general rule is '(en t(e counsel2s actuations are gross or *al*a%le& resulting in serious in4ustice to client. In t(is case& '(ile Att3. A1uino& counsel of *etitioner& 'as far fro+ %eing vigilant in *rotecting t(e interest of (is client& (is infractions cannot %e said to (ave de*rived *etitioner of due *rocess. Petitioner 'as a%le to activel3 *artici*ate in t(e *roceedings a ,uo. >(ile it +a3 (ave lost its rig(t to a**eal& it 'as not denied its da3 in court. Rig(t to a**eal is not a natural rig(t or a *art of due *rocess %ut onl3 a statutor3 *rivilege and +a3 %e e7ercised onl3 in t(e +anner and in accordance 'it( t(e *rovisions of la'. >(en *etitioner is at fault or not entirel3 %la+eless& t(ere is no reason to overturn 'ell settled 4uris*rudence. Petitioner 'as 'anting in all t(ese areas. <ot onl3 did it fail to regularl3 c(ecA on t(e status of t(e case& it also failed to ensure t(at it could %e notified of t(e decision as soon as it 'as *ro+ulgated. Petitioner did not infor+ t(e court t(at it (as severed its relations(i* 'it( Att3. A1uino. <eit(er did it (ire a ne' la'3er soon after Att3. A1uino allegedl3 ceased to %e its counsel.

A2010 Avena
)(at Att3. A1uino refused to receive a co*3 of t(e decision and no su%stituted service 'as effected does not erase t(e fact t(at a co*3 of t(e trial court decision (ad earlier %een sent %3 registered +ail to Att3. A1uino )(is is sufficient service of t(e decision on *etitioner since service u*on counsel of record at (is given address is service to *etitioner. In cases '(ere service 'as +ade on t(e counsel of record at (is given address& notice sent to *etitioner itself is not even necessar3. #ven t(en& in t(e *resent case& t(e trial court (ad sent a co*3 of t(e decision to *etitioner2s Ano'n address. O&iter Court reiterates t(e distinction %et'een *etition for revie' on certiorari under Rule 45 and *etition for certiorari under Rule 95. It s(ould %e recalled t(at a *etition under Rule 45 %rings u* for revie' errors of 4udg+ent '(ile a *etition under Rule 95 concerns errors of 4urisdiction or grave a%use of discretion a+ounting to lacA or e7cess of 4urisdiction. =rave a%use of discretion is not an allo'a%le ground under Rule 45. ;o'ever& a *etition for revie' on certiorari under Rule 45 +a3 %e considered as a *etition for certiorari under Rule 95 '(ere it is alleged t(at t(e res*ondents a%used t(eir discretion. Disposition Petition is dis+issed.

Prof. Victoria A.

21

COMPUTATION OF TIME SPS. CONRADO %n) MA. CORONA ROMERO '#. CA, SATURNINO S. ORDEN /.R. N!. 3:9:B5 AUSTRIA-MARTINEZ= M%( 35, 9BB4
NATURE Petition for certiorari filed VR95W FACTS !a. Corona Ro+ero and (er si%lings e7ecuted a letter contract to sell 'it( *rivate res*ondent Saturnino Orden. In said contract& Orden *ro*osed to *urc(ase fro+ Ro+ero and (er si%lings a *ro*ert3 located at Denver cor. <e' CorA Sts.& Cu%ao& HC for t(e total a+ount of P1:!. )(e contract sti*ulated t(at *rivate res*ondent s(all *a3 *etitioner t(e a+ount of P:! u*on t(e e7ecution of t(e deed of a%solute sale& t(e %alance

of P10! not later t(an Dece+%er 1/& 1//9 and t(at Orden s(all s(oulder t(e e7*enses to evict t(e s1uatters on t(e *ro*ert3. >(en Orden failed to *a3 t(e do'n *a3+ent& *etitioner Corona told (i+ t(at s(e 'as rescinding t(e contract to sell. Orden t(en filed a co+*laint for s*ecific *erfor+ance and da+ages against *etitioners %efore t(e HC R)C alleging t(at (e (as co+*lied 'it( (is o%ligation to evict t(e s1uatters on t(e *ro*ert3 and is entitled to de+and fro+ *etitioners t(e *erfor+ance of t(eir o%ligation under t(e contract. Si+ultaneous 'it( t(e filing of t(e co+*laint& Orden caused t(e annotation of a notice of lis *endens on t(e )C). August 11& 1//:& !anuel C. "i+sico& .r. and Alo3sius R. Santos& su%se1uent %u3ers of t(e su%4ect *ro*ert3 sold %3 Corona and (er si%lings& filed a +otion for leave to intervene 'it( t(e R)C and 'ere ad+itted as defendants intervenors. )(e3 filed a +otion for t(e cancellation of lis *endens '(ic( t(e R)C granted in its Resolution sa3ing t(at t(e evidence *resented %3 Orden does not %ear out t(e +ain allegations in t(e co+*laint and t(at (e does not (ave an3 actiona%le rig(t over t(e su%4ect *ro*ert3 t(ere %eing no deed of sale e7ecuted %et'een (i+ and t(e defendants over t(e su%4ect real *ro*erties as offered in t(e alleged agree+ent. R)C@ denied Orden2s !R. <ov. 19& 1//?& Orden filed a *etition for certiorari %efore t(e CA seeAing t(e nullification of t(e resolutions of t(e R)C and asAed for t(e re annotation of t(e notice of lis *endens on t(e )C). )(e CA granted t(e *etition on 4 grounds@ -irst& t(e3 said t(at t(e general rule is Fa notice of lis *endens cannot %e cancelled '(ile t(e action is *ending and undeter+ined e7ce*t in cases e7*ressl3 *rovided %3 statute.L Second& CA cited Sec.:: of PD 152/ Pro*ert3 Registration Decree '(ic( *rovided for t'o grounds for t(e court to order t(e cancellation of a notice of lis *endens during t(e *endenc3 of an action '(ic( are@ 516 if t(e annotation 'as for t(e *ur*ose of +olesting t(e title of t(e adverse *art3& or 526 '(en t(e annotation is not necessar3 to *rotect t(e title of t(e *art3 '(o caused it to %e recorded 5<O> S#C 14& R10 ROC6. )(ird& t(e Doctrine of "is Pendens 'ould %e rendered +eaningless if t(e *rivate res*ondents are allo'ed to file a %ond regardless of t(e a+ount& in su%stitution of said notice and t(at t(e la' does not aut(oriBe a 4udge to cancel a notice of lis *endens *ending litigation& u*on t(e +ere filing of a sufficient

Civil Procedure Digest

%ond %3 t(e *art3 on '(ose title said notice is annotated. -ourt(& if t(ere 'as indeed an agree+ent to sell %et'een t(e *etitioner and t(e *rivate res*ondents o'ners 5'(ic( 1uestion of fact is not for t(is court to deter+ine in t(is *etition6& t(en t(e said *arties are %ound %3 t(e *rovisions of A14:5 of t(e Civil Code 5)(e contract of sale is *erfected at t(e +o+ent t(ere is a +eeting of +inds u*on t(e t(ing '(ic( is t(e o%4ect of t(e contract and u*on t(e *rice.-ro+ t(at +o+ent& t(e *arties +a3 reci*rocall3 de+and *erfor+ance& su%4ect to t(e *rovisions of t(e la' governing t(e for+ of contract.6 CA denied Ro+eros !R on .anuar3 29& 2000. Petitioners/ contention. %3 ordering t(e re annotation of t(e notice of lis *endens& '(en *rivate res*ondent did not even assert a clai+ of *ossession or title over t(e su%4ect *ro*ert3& t(e CA 'ent against t(e doctrine in Villanueva vs. Court of A**eals '(ere t(is Court (eld t(at t(e a**licant +ust& in t(e co+*laint or ans'er filed in t(e su%4ect litigation& assert a clai+ of *ossession or title over t(e su%4ect *ro*ert3 in order to give due course to (is a**lication$ t(e CA& in concluding t(at t(ere 'as no (earing %efore t(e annotation 'as cancelled& overlooAed t(e fact t(at t(e +otion for cancellation 'as set for (earing on <ove+%er 12& 1//:& t(at *rivate res*ondent 'as dul3 notified %ut failed to a**ear& and t(at (e 'as a%le to file (is o**osition to t(e +otion to cancel lis *endens '(ic( t(e R)C considered %efore *ro+ulgating its Resolution dated <ove+%er 29& 1//:. Orden/s contention. t(e court a 1uo cancelled t(e notice of lis *endens even %efore it (as %een a**rised of all t(e relevant facts of t(e case$ t(e CA 'as correct in ruling t(at '(ile t(e *arties are locAed in legal %attle and until it %eco+es +anifest t(at t(e grounds set fort( in Sec. ::& P.D. <o. 152/ e7ist& t(e trial court s(ould not allo' t(e cancellation of t(e lis *endens$ In t(eir Re*l3& *etitioners reiterate t(eir argu+ents and cited A-P !utual 8enefit Association& Inc. vs. Court of A**eals '(ere it 'as (eld t(at a notice of lis *endens +a3 %e annotated onl3 '(ere t(ere is an action or *roceeding in court '(ic( affects title to or *ossession of real *ro*ert3. )(e3 furt(er +aintain t(at t(e re1uire+ent of *rior (earing 'as sufficientl3 co+*lied 'it( in t(is case and *etitioners did not act in %ad fait( '(en s(e sold t(e su%4ect *ro*ert3 *ending t(e outco+e of t(is case since t(ere 'as no outstanding in4unction or restraining order '(ic( 'ould (ave *revented (er fro+ doing so.

A2010 Avena
ISSUE >O< t(e CA co++itted grave a%use of discretion in ordering t(e re annotation of t(e lis *endens. HELD <O. Petitioners (ave failed to s(o' t(at t(e CA co++itted =AD. Reasoning. ;eirs of #ugenio "o*eB& Sr. vs. #nri1ueB@ "is *endens& '(ic( literall3 +eans *ending suit& refers to t(e 4urisdiction& *o'er or control '(ic( a court ac1uires over *ro*ert3 involved in a suit& *ending t(e continuance of t(e action& and until final 4udg+ent. "i+ v. Vera CruB@ -ounded u*on *u%lic *olic3 and necessit3& lis *endens is intended to Aee* t(e *ro*erties in litigation 'it(in t(e *o'er of t(e court until t(e litigation is ter+inated& and to *revent t(e defeat of t(e 4udg+ent or decree %3 su%se1uent alienation. Cared vs. Ilarde@ Its notice is an announce+ent to t(e '(ole 'orld t(at a *articular *ro*ert3 is in litigation and serves as a 'arning t(at one '(o ac1uires an interest over said *ro*ert3 does so at (is o'n risA or t(at (e ga+%les on t(e result of t(e litigation over said *ro*ert3. )(e filing of a notice of lis *endens (as a t'o fold effect@ 516 to Aee* t(e su%4ect +atter of t(e litigation 'it(in t(e *o'er of t(e court until t(e entr3 of t(e final 4udg+ent to *revent t(e defeat of t(e final 4udg+ent %3 successive alienations$ and 526 to %ind a *urc(aser& %ona fide or not& of t(e land su%4ect of t(e litigation to t(e 4udg+ent or decree t(at t(e court 'ill *ro+ulgate su%se1uentl3. !agdalena ;o+eo'ners Association& Inc. vs. CA@ a notice of lis *endens is a**ro*riate in t(e follo'ing@ 5a6 an action to recover *ossession of real estate$ 5%6 an action to 1uiet title t(ereto$ 5c6 an action to re+ove clouds t(ereon$ 5d6 an action for *artition$ and 5e6 an3 ot(er *roceedings of an3 Aind in Court directl3 affecting t(e title to t(e land or t(e use or occu*ation t(ereof or t(e %uildings t(ereon. Atlantic #rectors& Inc. vs. ;er%al Cove Realt3 Cor*.@ Resorting to lis *endens is not necessaril3 confined to cases t(at involve title to or *ossession of real *ro*ert3 %ut also a**lies to suits seeAing to esta%lis( a rig(t to& or an e1uita%le estate or interest in& a s*ecific real *ro*ert3$ or to enforce a lien& a c(arge or an encu+%rance against it. )(e doctrine of lis *endens (as no a**lication to a *roceeding in '(ic( t(e onl3 o%4ect soug(t is t(e recover3 of a +one3 4udg+ent& t(oug( t(e title or rig(t of *ossession to *ro*ert3 %e incidentall3

Prof. Victoria A.

2:

affected. It is essential t(at t(e *ro*ert3 %e directl3 affected suc( as '(en t(e relief soug(t in t(e action or suit includes t(e recover3 of *ossession& or t(e enforce+ent of a lien& or an ad4udication %et'een conflicting clai+s of title& *ossession& or t(e rig(t of *ossession to s*ecific *ro*ert3& or re1uiring its transfer or sale. #ven if a *art3 initiall3 avails of a notice of lis *endens u*on t(e filing of a case in court& suc( notice is rendered nugator3 if t(e case turns out to %e a *urel3 *ersonal action. In suc( event& t(e notice of lis *endens %eco+es functus officio. )o *ut t(e *ro*ert3 under t(e coverage of t(e rule on lis *endens& all a *art3 (as to do is to assert a clai+ of *ossession or title over t(e su%4ect *ro*ert3. It is not necessar3 t(at o'ners(i* or interest over t(e *ro*ert3 is *roved. 83 *ra3ing for t(e Ro+eros to %e %ound %3 t(e ter+s of t(eir contract 5ie. S*ecific *erfor+ance and da+ages6& Orden in effect asAs t(e court to order *etitioners to fulfill t(eir *ro+ise to sell t(e *ro*ert3 for t(e a+ount of P1:!. >(ile Orden did not e7*licitl3 state t(at (e 'as running after t(e o'ners(i* of t(e *ro*ert3& a si+*le reading of t(e co+*laint 'ould s(o' t(at suc( 'as (is intent. )(is is sufficient for *ur*oses of annotating lis *endens. )(ere is no re1uire+ent t(at t(e *art3 a**l3ing for t(e annotation +ust *rove (is rig(t or interest over t(e *ro*ert3 soug(t to %e annotated. )(us& even on t(e %asis of an unregistered deed of sale& a notice of lis *endens +a3 %e annotated on t(e title. Said annotation cannot %e considered as a collateral attacA against t(e certificate of title %ased on t(e *rinci*le t(at t(e registration of a notice of lis *endens does not *roduce a legal effect si+ilar to a lien. )(e rules +erel3 re1uire t(at an affir+ative relief %e clai+ed since a notation of lis *endens neit(er affects t(e +erits of a case nor creates a rig(t or a lien. It onl3 *rotects t(e a**licant2s rig(ts '(ic( 'ill %e deter+ined during trial. Dispositive t(e *etition for certiorari is DIS!ISS#D for lacA of +erit.

LUZ V NATIONAL AMNESTY COMMISSION BB SCRA BB CALLEJO, SR= SEP 9:, 9BB:

Civil Procedure Digest

A2010 Avena
reasoned t(at since (e filed (is +otion for e7tension of ti+e to file (is *etition for revie' on t(e said date& t(e said +otion 'as ti+el3 filed. On August 1/& 2000& t(e CA issued a Resolution den3ing t(e *etitioners +otion& rel3ing on A.!. <o. 00 2 14 SC issued on -e%ruar3 2/& 2000& '(ic( *rovides t(at an3 e7tension of ti+e to file t(e re1uired *leading s(ould %e counted fro+ t(e e7*iration of t(e *eriod regardless of t(e fact t(at t(e said due date is a Saturda3& Sunda3& or legal (olida3. ISSUE >O< t(e *etitioner ti+el3 filed (is second +otion for e7tension of ti+e to file (is *etition for revie'. HELD <O. Petitioner2s +otion for a second e7tension of ti+e to file (is *etition for revie' 'as filed out of ti+e. Reasoning. Section 1& Rule 22& of t(e 1//: Rules of Civil Procedure *rovides@ Section 1. Go$ to compute time. In co+*uting an3 *eriod of ti+e *rescri%ed or allo'ed %3 t(ese Rules& or %3 order of t(e court& or %3 an3 a**lica%le statute& t(e da3 of t(e act or event fro+ '(ic( t(e designated *eriod of ti+e %egins to run is to %e e7cluded and t(e date of *erfor+ance included. If t(e last da3 of t(e *eriod& as t(us co+*uted& falls on a Saturda3& a Sunda3& or a legal (olida3 in t(e *lace '(ere t(e court sits& t(e ti+e s(all not run until t(e ne7t 'orAing da3.0 )(e Court clarified t(e *rovision '(en it issued A.!. <o. 00 2 14 SC& '(ic( reads@ >(ereas& t(e aforecited *rovision a**lies in t(e +atter of filing of *leadings in courts '(en t(e due date falls on a Saturda3& Sunda3& or legal (olida3& in '(ic( case& t(e filing of t(e said *leading on t(e ne7t 'orAing da3 is dee+ed on ti+e$ >(ereas& t(e 1uestion (as %een raised if t(e *eriod is e7tended i*so 4ure to t(e ne7t 'orAing da3 i++ediatel3 follo'ing '(ere t(e last da3 of t(e *eriod is a Saturda3& Sunda3 or legal (olida3 so t(at '(en a +otion for e7tension of ti+e is filed& t(e *eriod of e7tension is to %e recAoned fro+ t(e ne7t 'orAing da3 and not fro+ t(e original e7*iration of t(e *eriod$ <O> );#R#-OR#& t(e Court Resolves& for t(e guidance of t(e 8enc( and t(e 8ar& to declare t(at Section 1& Rule 22 s*eaAs onl3 of ,t(e last da3 of t(e *eriod, so t(at '(en a *art3 seeAs an e7tension and t(e sa+e is granted& t(e due date ceases to %e t(e

Prof. Victoria A.

24

NATURE Petition for revie' of t(e Resolution of t(e CA FACTS On .ul3 1?& 1/??& t(e *etitioner 'as c(arged 'it( violation of Presidential Decree <o. 1?99 5illegal *ossession of firear+s6 in t(e Regional )rial Court of !aAati Cit3& docAeted as Cri+inal Case <o. 42:. On !arc( 22& 2000& t(e *etitioner filed an a**lication for a+nest3 'it( t(e "ocal A+nest3 8oard for !etro !anila. In due course& t(e %oard denied t(e said a**lication. On August 29& 2002& t(e <ational A+nest3 Co++ission 5<AC6 issued a Resolution affir+ing t(at of t(e "ocal A+nest3 8oard. )(e +otion for reconsideration t(ereof 'as denied %3 t(e <AC& *er its Resolution dated <ove+%er 10& 2002& a co*3 of '(ic( 'as received %3 t(e *etitioner on <ove+%er 22& 2002. Inder Rule III& Section 4 of <AC Ad+inistrative Order <o. 2& Series of 1///& t(e *etitioner (ad until Dece+%er :& 2002& a Saturda3& 'it(in '(ic( to file a *etition for revie' of t(e said resolution 'it( t(e Court of A**eals. On Dece+%er /& 2002& t(e *etitioner filed a +otion in t(e a**ellate court for an e7tension of fifteen 5156 da3s fro+ Dece+%er /& 2002& or until Dece+%er 24& 2002 'it(in '(ic( to file (is *etition. )(e *etitioner alleged t(erein t(at (e (ad 4ust engaged t(e services of counsel '(o needed additional ti+e to stud3 t(e case and draft t(e *etition. ;o'ever& t(e *etitioner failed to file (is *etition for revie'. Dece+%er 24& 2002 'as declared a national (olida3$ Dece+%er 25& 2002 'as also a (olida3. On Dece+%er 29& 2002& t(e *etitioner filed a second +otion for e7tension of fifteen 5156 da3s fro+ Dece+%er 29& 2002 or until .anuar3 10& 2002& 'it(in '(ic( to file (is *etition. )(e *etitioner filed (is *etition for revie' 'it( t(e Court of A**eals on .anuar3 10& 2000. On .anuar3 10& 2000& t(e CA issued a Resolution granting t(e *etitioners first +otion for a fifteen da3 e7tension counted fro+ Dece+%er :& 2002 or until Dece+%er 22& 2002& 'it(in '(ic( to file said *etition. On -e%ruar3 20& 2000& t(e CA issued a Resolution den3ing *etitioners second +otion for (aving %een filed out of ti+e. )(e *etitioner filed a +otion for reconsideration of t(e -e%ruar3 20& 2000 Resolution clai+ing t(at& since t(e last da3 to file (is *etition 'as a Saturda3& Dece+%er :& 2002& and t(e ne7t da3& Dece+%er ?& 2002 'as a Sunda3& t(e last da3 for filing t(e *etition 'as Dece+%er /& 2002. ;e

last da3 and (ence& t(e *rovision no longer a**lies. An3 e7tension of ti+e to file t(e re1uired *leading s(ould t(erefore %e counted fro+ t(e e7*iration of t(e *eriod regardless of t(e fact t(at said due date is a Saturda3& Sunda3 or legal (olida3. )(e e7tension granted %3 t(e Court of A**eals s(ould %e tacAed to t(e original *eriod and co++ences i++ediatel3 after t(e e7*iration of suc( *eriod. Inder t(e Resolution of t(is Court in A.!. <o. 00 2 14 SC& t(e CA (as no discretion to recAon t(e co++ence+ent of t(e e7tension it granted fro+ a date later t(an t(e e7*iration of suc( *eriod& regardless of t(e fact t(at said due date is a Saturda3& Sunda3& or a legal (olida3. )(e Court of A**eals cannot %e faulted for granting t(e *etitioners first +otion for e7tension of fifteen 5156 da3s 'it(in '(ic( to file (is *etition for revie'& recAoned fro+ Dece+%er :& 2002& and not fro+ Dece+%er /& 2002 as *ra3ed for %3 t(e *etitioner. In so doing& it +erel3 a**lied& 'it( fealt3& Section 1& Rule 22 of t(e Revised Rules of Court& as a+ended& as clarified %3 t(e Court via its Resolution in A.!. <o. 00 2 14 SC. ;ad t(e CA granted t(e *etitioners first +otion for e7tension and recAoned t(e fifteen da3 *eriod fro+ Dece+%er /& 2002& instead of fro+ Dece+%er :& 2002& t(e a**ellate court 'ould (ave acted 'it( grave a%use of its discretion. Dispositive Petition granted

SUMMONS D!)e# !& #e"'ice 3. '!*,n %"( %ppe%"%nce 9. V!*,n %"( #,7Di##i!n RODRI/UEZ VS ALIFPALA @#,p"%A
FACTS S*ouses )olentino 'ere co +ovants in t(e +otion for a 4udg+ent on a co+*ro+ise 'it( S*ouses Re%ollado VOLUNTARY SUBMISSION t(e )olentinos freel3 and voluntaril3 entered into t(e co+*ro+ise agree+ent '(ic( %eca+e t(e %asis of 4udg+ent of t(e Cit3 Court. Inder t(e circu+stances& t(e )olentinos are esto**ed t(e ver3 aut(orit3 t(e3 invoAed. And even assu+ing t(at esto**el lies& 'e cannot set aside t(e *rinci*le of e1uit3 t(at

Civil Procedure Digest

jurisdiction over a person not originall% a part% to a case $a% &e ac*uired( upon proper conditions( thru the voluntar% appearance of the person &efore the court. 83 co+ing for'ard 'it( t(e original litigants in +oving for a 4udg+ent on co+*ro+ise and %3 assu+ing suc( interest in t(e final ad4udication of t(e case toget(er 'it( t(e Ro%ellados& t(e )olentinos effectivel3 su%+itted t(e+selves to t(e 4urisdiction of t(e Cit3 Court. J,"i#)ic i!n !'e" -e p*%in i&& can %e ac1uired %3 t(e court u*on filing of t(e co+*laint. On t(e ot(er (and& .,"i#)ic i!n !'e" -e )e&en)%n # can %e ac1uired %3 t(e court u*on service of valid su++ons and u*on voluntar3 a**earanceEsu%+ission of a *erson in court.

A2010 Avena
'as furnis(ed =uevarra& t(roug( registered +ail 'it( return card& at 2/ 8urgos Street& Cala+%a& "aguna. *etitioner filed t(e registr3 return card indicating recei*t of t(e +otion trial court granted *etitionerDs !otion )o Declare Defendant In Default and allo'ed an e7 *arte *resentation of *etitionerDs evidence. )C in favor of )o3ota a 'rit of e7ecution 'as issued to i+*le+ent t(e decision. )(e De*ut3 S(eriff& i+*le+enting t(e 'rit& levied on =uevarraDs )o3ota Corolla. )(e notice of lev3 'as served on =uevarra *ersonall3 %ut (e refused to sign t(e recei*t t(ereof& e7*ressed sur*rise over it& and stated t(at (e 'as not a'are of an3 case instituted against (i+. =uevarra turned over t(e ve(icle %ut filed a certiorari *etition %efore t(e CA clai+ing t(at t(e trial court did not ac1uire 4urisdiction over (is *erson %ecause of a defective service of su++ons on (i+. CA in favor of =uevarra annulled and set aside t(e default 4udg+ent& t(e 'rit of e7ecution& t(e lev3 u*on e7ecution and t(e sale at *u%lic auction of t(e ve(icle sa3ing t(at su%stituted service of su++ons 'as not valid )o3ota 'ent to SC ISSUE 2. >O< service of su++ons is defective HELD 9.YES. Reasoning It is not (ere dis*uted t(at su%stituted service of su++ons (as %een resorted to %3 t(e *rocess server %ut t(at& unfortunatel3& t(e serverDs return did not state t(e facts or t(e needed *articulars t(at could 4ustif3 t(e su%stituted service. )(e constitutional re1uire+ent of due *rocess& t(is Court (as (eld in 8oticano vs. C(u& .r.& e7acts t(at t(e service 5of su++ons6 %e suc( as +a3 reasona%l3 %e e7*ected to give t(e notice desired. Once t(e service *rovided %3 t(e rules acco+*lis(es t(at end& ,t(e re1uire+ent of 4ustice is ans'ered$ t(e traditional notions of fair *la3 are satisfied$ due *rocess is served., Alt(oug( !oran& on t(e Rules of Court& (as said t(at ,Irregularities of t(is Aind 5su%stituted service6 5+ig(t6 %e cured %3 *roof t(at t(e co*ies 5(ave6 actuall3 %een delivered to t(e defendant&, in t(e case at %ar& (o'ever& *rivate res*ondent a**ears to (ave %een notified of t(e case for t(e first ti+e onl3 at t(e ti+e t(e lev3 on e7ecution of 4udg+ent 'as effected %3 t(e s(eriff.

Prof. Victoria A.

25

1. #e"'ice in pe"#!n TOYOTA CUBAO V. CA @/UEVARRAA /.R. N!. 395193 VITU/= Oc !7e" 91, 3>>2
NATURE Petition for revie' FACTS -Petitioner )o3ota Cu%ao& Inc.& undertooA re*airs on t(e car o'ned %3 *rivate res*ondent =uevarra. )(e re*air cost'as *aid %3 +eans of 8PI C(ecA dra'n %3 =uevarra in favor of )o3ota. )(e c(ecA 'as dis(onored. =uevarra failed to +aAe good t(e c(ecA )o3ota a civil case for collection of t(e un*aid account. trial court issued t(e #,DD!n# ! /,e'%""% % -i# %))"e## in 9> B,"+!# S "ee , C%*%D7%, L%+,n%. Process Server Antonio Ri+as of t(e Regional )rial Court of Cala+%a& "aguna& su%+itted to t(e trial court a return on t(e service$ it read in full@ ,Res*ectfull3 returned to t(e 8ranc( ClerA of Court& Regional )rial Court& <ational Ca*ital .udicial Region& 8ranc( /2& HueBon Cit3& t(e (erein attac(ed original su++on in t(e a%ove entitled case 'it( t(e infor+ation t(at it 'as dul3 served to t(e defendant DA<I"O A. =I#VARRA& -", -e" #i# e"-in-*%K, /LORIA CABALLES, 7( *e%'in+ % c!p( !& -e #,DD!n# %n) c!Dp*%in 7, "e&,#e) ! #i+n.L )o3ota clai+s t(at =uevarra (ad failed to file an A<S>#R 'it(in t(e regle+entar3 *eriod& +oved to declare =uevarra in default. A co*3 of t(e +otion

)(e fact of t(e +atter 'as t(at =uevarra evidentl3 (ad %een una'are of t(e *roceedings %efore t(e R)C. I*on learning of t(e adverse decision& %ut alread3 too late in t(e da3 for (i+ to get relief fro+ t(at court& (e filed& instead& a certiorari *etition %efore t(e Court of A**eals. )(e a**ellate court neit(er a%used its discretion nor 'as in error '(en it refused to consider t(e affidavit of t(e *rocess server 5declaring t(e conco+itant facts re1uired to %e incor*orated in t(e return6 '(ic( 'as *resented to it for t(e first ti+e onl3 as an anne7 to its Re*l3 filed 'it( t(e tri%unal. -or t(e a**ellate court to (ave acce*ted t(e affidavit favora%l3 on its face value& 'it(out (earing& 'ould (ave again %een a denial to t(e defendant 5(erein *rivate res*ondent6 of (is rig(t to due *rocess. Di#p!#i i!n P#)I)IO< D#<I#D.

:. S,7# i , e) #e"'ice EUELNAN V. VHF PHIL. /.R. N!. 31;4BB /ARCIA= Sep eD7e" 35, 9BB4
NATURE Petition for revie' on certiorari FACTS V;- P(ils filed an e4ect+ent suit in t(e !e)C against Huelnan involving a condo+iniu+ unit !e)C in favor of V;- P(ils. on its finding t(at ,su++ons toget(er 'it( a co*3 of t(e co+*laint 'as served Von *etitionerW t(ru (is 'ife on August 25& 1//2 %3 su%stituted service, and t(at *etitioner ,failed to file (is ans'er 'it(in t(e regle+entar3 *eriod,& ca+e out 'it( a decision dated <ove+%er 20& 1//2 Co*3 of t(e afore+entioned decision 'as served on *etitioner %3 "e+i# e"e) D%i* %ut t(e sa+e 'as returned unclai+ed on account of *etitionerDs failure to clai+ t(e sa+e )e#pi e -e p!# D%# e"J# -"ee @1A #,cce##i'e n! ice# !n N!'eD7e" 94, 3>>9, DeceD7e" 2, 3>>9 %n) DeceD7e" 33, 3>>9. <o a**eal (aving %een taAen %3 t(e *etitioner& t(e !e)C decision %eca+e final and e7ecutor3. a 'rit of e7ecution& a notice of lev3 and a notice to vacate 'ere served on *etitionerDs 'ife '(o acAno'ledged recei*t t(ereof.

Civil Procedure Digest

*etitioner filed 'it( t(e R)C a Petition for Relief fro+ .udg+ent >it( Pra3er for Preli+inar3 In4unction andEor te+*orar3 restraining order& t(ereunder alleging& t(at (e 'as never served 'it( su++ons and 'as co+*letel3 una'are of t(e *roceedings in t(e e4ect+ent suit& adding t(at (e learned of t(e 4udg+ent rendered t(ereon onl3 on M%( 3;, 3>>1 K-en % n! ice !& *e'( !n eCec, i!n c%De ! -i# 8n!K*e)+e. ;e t(us *ra3ed t(e R)C to annul and set aside t(e !e)C decision and t(e 'rits issued in connection t(ere'it(. In a decision dated .une 0& 1//9, t(e R)C granted *etitionerDs *etition for relief and set aside t(e !e)C decision. )(e R)C e7*lained t(at *etitioner (ad %een undul3 de*rived of a (earing and (ad %een *revented fro+ taAing an a**eal for t(e reason t(at *etitionerDs 'ife& in a fit of anger& tore t(e su++ons and co+*laint in t(e e4ect+ent suit in t(e (eat of a +arital s1ua%%le. V;- 'ent to SC %ut SC re+anded to CA CA in a decision dated Se*te+%er 1:& 1//:& u*on a finding t(at *etitionerDs *etition for relief 'as filed 'it( t(e R)C %e3ond t(e 90 da3 +andator3 *eriod t(erefor under Section 0& Rule 0? of t(e Rules of Court& "e'e"#e) %n) #e %#i)e -e RTC )eci#i!n %n) "ein# % e) -% !& -e MeTC, ISSUE 0. >O< );# !#)ROPO"I)A< )RIA" COIR) O- !A<I"A <#V#R ACHIIR#D .IRISDIC)IO< OV#R );# P#)I)IO<#R& ;#<C# I)S D#CISIO< CA<<O) 8#CO!# -I<A" A<D #[#CI)ORC. HELD 1.NO. Reasoning )(e records clearl3 reveal t(at a co*3 of t(e !e)C decision 'as sent to *etitioner t(roug( registered +ail at (is given address on <ove+%er 25& 1//2. It s(ould %e noted t(at *etitioner 'as not re*resented %3 counsel during t(e *roceedings %efore t(e !e)C. )(e first notice to (i+ %3 t(e *ost+aster to c(ecA (is +ail 'as on <ove+%er 25& 1//2. )(ereafter& su%se1uent notices 'ere sent %3 t(e *ost+aster on Dece+%er :& 1//2 and Dece+%er 11& 1//2. -or sure& a certification t(at t(e registered +ail 'as unclai+ed %3 t(e *etitioner and t(us returned to t(e sender after t(ree successive notices 'as issued %3 t(e *ost+aster. ;ence& service of said !e)C decision %eca+e effective five 556 da3s after <ove+%er 25& 1//2& or on <ove+%er 00& 1//2& confor+a%l3 'it( Rule 10& Section 10 of t(e 1//: Rules of Civil Procedure& '(ic( reads@

A2010 Avena
S#C. 10. Co+*leteness of Service. G Personal service is co+*lete u*on actual deliver3. Service %3 ordinar3 +ail is co+*lete u*on t(e e7*iration of ten 5106 da3s after +ailing& unless t(e court ot(er'ise *rovides. Service %3 registered +ail is co+*lete u*on actual recei*t %3 t(e addressee& or after five 556 da3s fro+ t(e date (e received t(e first notice of t(e *ost+aster& '(ic(ever date is earlier. 5#+*(asis su**lied6 )(ere is no dou%t t(at under t(e Rules& service %3 registered +ail is co+*lete u*on actual recei*t %3 t(e addressee. ;o'ever& if t(e addressee fails to clai+ (is +ail fro+ t(e *ost office 'it(in five 556 da3s fro+ t(e date of t(e first notice& service %eco+es effective u*on t(e e7*iration of five 556 da3s t(erefro+. In suc( a case& t(ere arises a *resu+*tion t(at t(e service 'as co+*lete at t(e end of t(e said five da3 *eriod. )(is +eans t(at t(e *eriod to a**eal or to file t(e necessar3 *leading %egins to run after five da3s fro+ t(e first notice given %3 t(e *ost+aster. )(is is %ecause a *art3 is dee+ed to (ave received and to (ave %een notified of t(e 4udg+ent at t(at *oint. >it( t(e realit3 t(at *etitioner 'as first notified %3 t(e *ost+aster on <ove+%er 25& 1//2& it follo's t(at service of a co*3 of t(e !e)C decision 'as dee+ed co+*lete and effective five 556 da3s t(erefro+ or on N!'eD7e" 1B, 3>>9. <ecessaril3& t(e 90 da3 *eriod for filing a *etition for relief +ust %e recAoned fro+ suc( date 5<ove+%er 00& 1//26 as t(is 'as t(e da3 '(en actual recei*t %3 *etitioner is *resu+ed. In #-!" , pe i i!ne" K%# )eeDe) ! -%'e 8n!K*e)+e !& -e MeTC )eci#i!n !n N!'eD7e" 1B, 3>>9. T-e 5B-)%( pe"i!) &!" &i*in+ % pe i i!n &!" "e*ie& -,# eCpi"e) !n J%n,%"( 9>, 3>>1. Un&!" ,n% e*(, i K%# !n*( !n M%( 9:, 3>>1, !" 324 )%(# %& e" pe i i!ne" K%# )eeDe) ! -%'e *e%"ne) !& -e .,)+Den -% -e &i*e) -i# pe i i!n &!" "e*ie& Ki - -e RTC. Indu%ita%l3& t(e *etition 'as filed 'a3 %e3ond t(e 90 da3 *eriod *rovided %3 la'. Di#p!#i i!n P#)I)IO< D#<I#D. CA A--IR!#D

Prof. Victoria A.
1. Se"'ice in Pe"#!n :. S,7# i , e) Se"'ice 4. EC "%- e""i !"i%* Se"'ice

22

/UI/UINTO CREDIT COOPERATIVE, INC V TORRES =. R. <o. 1:0/29 C<AR#S SA<)IA=O$ Se*te+%er 15& 2009
NATURE Petition for revie' on certiorari under Rule 45 of t(e Rules of Court of t(e decision and resolution of t(e Court of A**eals FACTS Res*ondents Aida )orres& <onilo )orres& and S(er3l Ann )orres ;olgado, are +e+%ers of =uiguinto Credit Coo*erative& Inc. 5=ICCI6. )(e3 availed of loans fro+ t(e coo*erative %ut 'ere una%le to *a3 on t(e due dates des*ite de+ands. On !arc( 24& 2000& *etitioner filed a co+*laint %efore t(e R)C of 8ulacan for collection of su+ of +one3 and da+ages S,DD!n# %+%in# "e#p!n)en # Ke"e #e"'e) -"!,+- -ei" Sec"e %"(, % ce" %in Beni % S. P%+ %*,n%n, K-! "ecei'e) -e #%De !n Ap"i* 99, 9BB1. )(e Return of Su++ons 'as filed on A*ril 24& 2000 %3 Process Server Valeriano P. 8adato On <ove+%er 1?& 2000& *etitioner filed a +otion to declare res*ondents in default )C granted said *etition& t(ere%3 allo'ing *etitioner to *resent its evidence e7 *arte After *resenting *etitioner2s evidence e%.parte& t(e trial court rendered 4udg+ent on Se*te+%er 15& 2004& ordering res*ondents to *a3 *etitioner t(e ff@ 1. -or Aida )orres& t(e a+ount of P190&519.?0 fro+ A*ril& 2004 *lus legal interest until t(e said a+ount is full3 *aid$ 2. -or <onilo )orres t(e a+ount of P2:?&151.5? fro+ A*ril& 2004 *lus legal interest until t(e said a+ount is full3 *aid$ 0. -or S(er3l Ann )orres t(e a+ount of P15&/00./0 fro+ A*ril& 2004 *lus legal interest until t(e said a+ount is full3 *aid$ 4. )o *a3 P10&000.00& 4ointl3 and severall3& as attorne32s fees 5. Costs of suit. Petitioner t(ereafter +oved for t(e issuance of a 'rit of e7ecution& '(ic( 'as granted and accordingl3& t(e 'rit of e7ecution 'as issued on even date. On !a3 4& 2005& S(eriff -eli7%erto ". Sa+onte levied res*ondents2 (ouse and lot and t(e sa+e 'as

SUMMONS Q RULE 3: C!n en #, K-en i##,e), 7( K-!D i##,e) M!)e# !& Se"'ice 3. V!*,n %"( Appe%"%nce 9. V!*,n %"( S,7Di##i!n

Civil Procedure Digest

sc(eduled to %e sold at *u%lic auction on .une :& 2005 '(en t(e Court of A**eals issued a te+*orar3 restraining order. On August 24& 2005& t(e Court of A**eals annulled t(e 4udg+ent of t(e trial court on t(e ground t(at it did not ac1uire 4urisdiction over t(e *ersons of res*ondents since t(e3 'ere not validl3 served 'it( su++ons and neit(er did t(e3 voluntaril3 a**ear in court. According to t(e a**ellate court& t(e service of su++ons to Pagtalunan 'as in violation of Section 9& Rule 14 of t(e Rules of Court %ecause t(ere 'as no e7*lanation '(3 resort to su%stituted service of su++ons 'as +ade. )(us& t(e a**ellate court (eld t(at res*ondents 'ere de*rived of t(eir rig(t to due *rocess. )(e Court of A**eals denied *etitioner2s +otion for reconsideration& (ence& t(is *etition ISSUE >O< su++ons 'as not validl3 served on t(e res*ondents& and t(erefore t(e CA correctl3 annulled t(e 4udg+ent of t(e R)C HELD Ces. Su++ons is a 'rit %3 '(ic( t(e defendant is notified of t(e action %roug(t against (i+. Service of suc( 'rit is t(e +eans %3 '(ic( t(e court ac1uires 4urisdiction over (is *erson. .urisdiction over t(e *erson of t(e defendant is ac1uired t(roug( coercive *rocess& generall3 %3 t(e service of su++ons issued %3 t(e court& or t(roug( t(e defendant2s voluntar3 a**earance or su%+ission to t(e court. >(ere t(e defendant is a natural *erson& service +a3 %e *ersonal& su%stituted& %3 *u%lication and suc( ot(er +ode of service as t(e court +a3 dee+ sufficient. In an action in personam& 4urisdiction over t(e *erson of t(e defendant is necessar3 for t(e court to validl3 tr3 and decide t(e case. .urisdiction over t(e *erson of a resident defendant '(o does not voluntaril3 a**ear in court can %e ac1uired %3 *ersonal service of su++ons as *rovided under Section :& Rule 14 of t(e Rules of Court. -I& -e c%nn! 7e pe"#!n%**( #e"'e) Ki #,DD!n# Ki -in % "e%#!n%7*e iDe, #,7# i , e) #e"'ice D%( 7e D%)e in %cc!")%nce Ki Sec i!n ; !& -e #%i) R,*e. I& -e i# eDp!"%"i*( !, !& -e c!,n "(, %n( !& -e &!**!Kin+ D!)e# !& #e"'ice D%( 7e "e#!" e) !? @3A #,7# i , e) #e"'ice #e &!" - in Sec i!n ;= @9A pe"#!n%*

A2010 Avena
#e"'ice !, #i)e -e c!,n "(, Ki - *e%'e !& c!," = @1A #e"'ice 7( p,7*ic% i!n, %*#! Ki *e%'e !& c!," = !" @:A %n( ! -e" D%nne" -e c!," D%( )eeD #,&&icien . In t(ese t3*es of civil actions 5in *ersona+6& su++ons on t(e defendant +ust %e served %3 (anding a co*3 t(ereof to t(e defendant in *erson& or in case of refusal& %3 tendering it to (i+. If efforts to find defendant *ersonall3 +aAes *ro+*t service i+*ossi%le& service +a3 %e effected %3 leaving co*ies of t(e su++ons at t(e defendant2s d'elling (ouse or residence 'it( so+e *erson of suita%le age and discretion residing t(erein& or %3 leaving t(e co*ies at t(e defendant2s office or regular *lace of %usiness 'it( so+e co+*etent *erson in c(arge t(ereof. )(e *ro*er service of su++ons is a critical ste* in litigation %ecause u*on suc( service rests t(e court2s ac1uisition of 4urisdiction over t(e *erson of t(e defendant. In t(e a%sence of a valid 'aiver& trial and 4udg+ent 'it(out suc( service are null and void. In t(e instant case& t(e Court of A**eals correctl3 ruled t(at since su%stituted service 'as availed of in lieu of *ersonal service& t(ere s(ould %e a re*ort stating t(at Pagtalunan 'as one 'it( '(o+ res*ondents (ad a relations(i* of trust and confidence t(at 'ould ensure t(at t(e latter 'ill receive or %e notified of t(e su++ons issued in t(eir na+es. )(is is %ecause su%stituted service +a3 onl3 %e availed of '(en t(e res*ondents could not %e served *ersonall3 'it(in a reasona%le *eriod of ti+e& and suc( i+*ossi%ilit3 of *ro+*t service +ust %e s(o'n %3 stating t(at earnest efforts (ave %een +ade to find t(e res*ondents *ersonall3 and t(at suc( efforts (ave failed. Suc( re1uire+ents under Sections 9 and : of Rule 14 +ust %e follo'ed strictl3& fait(full3 and full3 in order not to de*rive an3 *erson of (is *ro*ert3 %3 violating (is constitutional rig(t to due *rocess. )(e statutor3 re1uire+ents of su%stituted service +ust %e strictl3 construed since it is an e7traordinar3 +et(od of service in derogation of *ersonal service of su++ons& availed of onl3 under certain conditions i+*osed %3 t(e Rules of Court. An3 su%stituted service ot(er t(an t(at aut(oriBed under Section : is dee+ed ineffective and contrar3 to la'. =ranting t(at Pagtalunan is t(e *ersonal secretar3 of Aida )orres& as a**earing in t(e Affidavit of !erit of S(er3l Ann )orres and attac(ed to t(e Petition of Annul+ent filed %efore t(e Court of A**eals& t(ere is

Prof. Victoria A.

2;

no s(o'ing t(at t(e for+er (ad indeed a relations(i* of trust and confidence 'it( t(e t(ree res*ondents. I %ppe%"# -% -e p"!ce## #e"'e" -%# i*( %n) c%p"ici!,#*( "e#!" e) ! #,7# i , e) #e"'ice !& #,DD!n# Ki -!, %#ce" %inin+ -e K-e"e%7!, # !& -e "e#p!n)en #. S,c- #e"'ice !& #,DD!n# i# n! 7in)in+ ,p!n "e#p!n)en # N!ni*! %n) S-e"(* Ann T!""e# K-!#e "e*% i!n#-ip Ki - P%+ %*,n%n K%# nei -e" "e%)i*( %#ce" %ine) n!" %)eH,% e*( eCp*%ine) in -e Re ,"n !& S,DD!n#. A*#!, n! e%"ne# e&&!" # Ke"e D%)e ! *!c% e "e#p!n)en Ai)% T!""e# K-! K%# %**e+e)*( K!"8in+ %7"!%) % -e iDe #,DD!n# K%# #e"'e) !n -e" pe"#!n. N! eCp*%n% i!n K%# # % e) in -e Re ,"n K-( #,7# i , e) #e"'ice K%# "e#!" e) ! -"!,+P%+ %*,n%n. >it(out s*ecif3ing t(e details of t(e attendant circu+stances or of t(e efforts e7erted to serve t(e su++ons& a general state+ent t(at suc( efforts 'ere +ade 'ill not suffice for *ur*oses of co+*l3ing 'it( t(e rules of su%stituted service of su++ons. In t(e instant case& t(ere 'as an undue& if not indecent& (aste to serve t(e su++ons at t(e first atte+*t 'it(out +aAing sure t(at *ersonal service 'as an i+*ossi%ilit3 %ecause eit(er t(e res*ondents (ad left for a foreign countr3 or an unAno'n destination 'it( no definite date of returning 'it(in a reasona%le *eriod& or (ad gone into (iding to avoid service of an3 *rocess fro+ t(e courts. Since t(e su%stituted service 'as not validl3 effected& t(e trial court did not ac1uire 4urisdiction over t(e *ersons of t(e res*ondents. )(e order of default& t(e 4udg+ent %3 default& t(e 'rit of e7ecution issued %3 it& as 'ell as t(e auction sale of t(e res*ondents2 *ro*erties levied on e7ecution are& t(erefore& null and void. Disposition. Petition is denied.

BONNEVIE V CA @P-i* B%n8 !& C!DDe"ceA /.R. NO. L-:>3B3 /UERRERO= Oc !7e" 9:, 3>;1
NATURE Petition for revie' on certiorari seeAing t(e reversal of t(e CA decision FACTS

Civil Procedure Digest

;onesto 8onnevie filed 'it( t(e C-I RiBal a co+*laint against P(ili**ine 8anA of Co++erce seeAing -e %nn,*Den !& -e Dee) !& M!" +%+e dated Dec 9& 1/99 e7ecuted in favor of t(e P8C %3 s*ouses "oBano& as 'ell as t(e eC "%.,)ici%* &!"ec*!#,"e D%)e on Se*t 4& 1/9?. )(e3 assail validit3 and legalit3 of t(e e7tra4udicial foreclosure on t(e follo'ing grounds@ a6 *etitioners 'ere never notified of t(e foreclosure sale. %6 )(e notice of auction sale 'as not *osted for t(e *eriod re1uired %3 la'. c6 *u%lication of t(e notice of auction sale in t(e "uBon >eeAl3 Courier 'as not in accordance 'it( la'. . Gistor!( -o&ano spouses $ere the o$ners of the propert! $hich the! mortgaged to secure the pa!ment of the loan in the principal amount of P)H+ the! $ere a out to o tain from P@C. . +he! then e%ecuted in favor of @onnevie the 3eed of Sale $ith 2ortgage for P1II+# P2H+ of $hich amount eing pa!a le to the -o&ano spouses upon the e%ecution of the document# and the P)H+ to P@C. . 6hen the mortgage $as e%ecuted ! the -o&ano spouses in favor of P@C# the loan of P)H+ $as not !et received them. . 5rom April 2J# 1KL) to *ul! 12# 1KLJ# @onnevie made pa!ments to P@C on the mortgage in the total amount of P1J#KEE.22. @onnevie then assigned all his rights under the 3eed of Sale $ith Assumption of 2ortgage to his rother# intervenor Aaoul. . P@C then applied for the foreclosure of the mortgage# and notice of sale $as pu lished in the -u&on 6ee'l! Courier on *une DI# *ul! )# and *ul! 1E# 1KLJ; auction sale $as conducted a month after# and the propert! $as sold to P@C for PJE#DJ).II. P8C s*ecificall3 denied +ost of t(e allegations@ 5a6 t(at t(e defendant (as not given its consent to t(e sale of t(e +ortgaged *ro*ert3$ 5%6 t(at t(e de+and letters and notice of foreclosure 'ere sent to .ose "oBano at (is address$ 5c6 t(at it 'as notified for t(e first ti+e a%out t(e alleged sale after it (ad foreclosed t(e "oBano +ortgage$ t(at t(e *ro*ert3 in 1uestion re+ained registered in t(e na+e of "oBano in t(e land records of RiBal and t(ere 'as no entr3& notation or indication of t(e alleged sale. After *etitioner ;onesto 8onnevie (ad rested (is case& *etitioner Raoul SV 8onnevie filed a +otion for intervention& '(ic( 'as granted. C-I dis+issed t(e co+*laint. !-R 'as also denied. CA affir+ed. ISSUE0S

A2010 Avena
1. >O< t(e +ortgage e7ecuted %3 t(e "oBanos in favor of P8C is valid 2. >O< e7tra4udicial foreclosure is valid HELD 1. C#S Reasoning A +ortgage follo's t(e *ro*ert3 '(oever t(e *ossessor +a3 %e and su%4ects t(e fulfill+ent of t(e o%ligation for '(ose securit3 it 'as constituted. Petitioners voluntaril3 assu+ed it and are& t(erefore& esto**ed fro+ i+*ugning its validit3. )(e3 did not secure t(e consent of res*ondent 8anA to t(e sale 'it( assu+*tion of +ortgage. 2. C#S Reasoning Ac N!. 1314 )!e# n! "eH,i"e pe"#!n%* n! ice !n -e D!" +%+!".31 ;onesto 8onnevie 'as not entitled to an3 notice %ecause as of !a3 14& 1/9?& (e (ad transferred and assigned all (is rig(ts and interests in favor of intervenor Raoul 'it(out infor+ing t(e 8anA. Also& *etitioners 'ere *laced on constructive notice. )(e notice of sale 'as *u%lis(ed in t(e "uBon Courier on .une 00& .ul3 : and .ul3 14& 1/9? and notices of t(e sale 'ere *osted for not less t(an t'ent3 da3s in at least t(ree 506 *u%lic *laces in t(e !unici*alit3 '(ere t(e *ro*ert3 is located. Act <o. 0105 +erel3 re1uires t(at suc( notice s(all %e *u%lis(ed once a 'eeA for at least t(ree consecutive 'eeAs. Suc( *(rase& as inter*reted %3 t(is Court in 8asa vs. !ercado does not +ean t(at notice s(ould %e *u%lis(ed for t(ree full 'eeAs. )o %e a ne's*a*er of general circulation& it is enoug( t(at ,it is *u%lis(ed for t(e disse+ination of local ne's and general infor+ation$ t(at it (as a %ona fide su%scri*tion list of *a3ing su%scri%ers$ t(at it is *u%lis(ed at regular intervals., )(e ne's*a*er need not (ave t(e largest circulation so long as it is of general circulation. W-e -e" !" n! -e n! ice !& %,c i!n #%*e K%# p!# e) &!" -e pe"i!) "eH,i"e) 7( *%K i# % H,e# i!n !& &%c . It can no longer %e entertained %3 t(is Court. <evert(eless& t(e records s(o' t(at co*ies of said notice 'ere *osted in t(ree cons*icuous *laces in t(e +unici*alit3 of Pasig& RiBal
13

Prof. Victoria A.

2>

na+el3@ t(e ;all of .ustice& t(e Pasig !unici*al !arAet and Pasig !unici*al ;all. A single act of *osting 5'(ic( +a3 even e7tend %e3ond t(e *eriod re1uired %3 la'6 satisfies t(e re1uire+ent of la'. )(e %urden of *roving t(at t(e *osting re1uire+ent 'as not co+*lied 'it( is no' s(ifted to t(e one '(o alleges non co+*liance. Disposition )(e a**eal %eing devoid of +erit& t(e decision of t(e Court of A**eals is (ere%3 A--IR!#D. Costs against *etitioners.

DIAL CORPORATION ' SORIANO @RTC J,)+eA BB SCRA BB /RINO-AEUINO= M%( 13, 3>;;
NATURE Petition for certiorari 'it( a *ra3er for t(e issuance of a te+*orar3 restraining order FACTS )(e *etitioners 5 Dial Cor*.& C N ) Refiner3 Inc.& <alin sdn. %(%. 8erisford Co++odities& "td.& and Pacific !olasses Co.6 are foreign cor*orations 5IS& IT and !ala3sia6. )(e3 are not do+iciled in t(e P(ili**ines& nor do t(e3 (ave officers or agents& *lace of %usiness& or *ro*ert3 in t(e P(ili**ines$ t(e3 are not licensed to engage& and are not engaged& in %usiness (ere. )(e res*ondent I+*erial Vegeta%le Oil Co.& Inc. 5IVO6 is a P(ili**ine cor*oration '(ic( t(roug( its *resident& Do+inador !onteverde& (ad entered into several contracts for t(e deliver3 of coconut oil to t(e *etitioners. )(ose contracts sti*ulate t(at an3 dis*ute %et'een t(e *arties 'ill %e settled t(roug( ar%itration under t(e rules of eit(er t(e -ederation of Oils Seeds and -ats Association 5-OS-A6 or t(e <ational Institute of Oil Seed Products 5<IOP6. 8ecause IVO defaulted under t(e contracts& t(e *etitioners and 15 ot(ers& initiated ar%itration *roceedings a%road& and so+e (ave alread3 o%tained ar%itration a'ards against IVO. On A*ril ?& 1/?:& IVO filed a co+*laint for in4unction and da+ages 5R)C !anila6 against 1/ foreign coconut oil %u3ers including t(e *etitioners& 'it( '(o+ Do+inador (ad entered into contracts for t(e deliver3 of coconut oil. IVO re*udiated Do+inadorDs contracts on t(e grounds t(at t(e3 'ere +ere ,*a*er trading in futures, as no actual deliver3 of t(e coconut oil 'as allegedl3 intended %3 t(e *arties$

Section 0. <otice s(all %e given %3 *osting notices of t(e sale for not less t(an t'ent3 da3s in at least t(ree *u%lic *laces of t(e +unici*alit3 or cit3 '(ere t(e *ro*ert3 is situated& and if suc( *ro*ert3 is 'ort( +ore t(an four (undred *esos& suc( notice s(all also %e *u%lis(ed once a 'eeA for at least t(ree consecutive 'eeAs in a ne's*a*er of general circulation in t(e +unici*alit3 or cit3.

Civil Procedure Digest

t(at t(e 8oard of Directors of IVO re+oved !onteverde fro+ (is *osition as *resident of t(e cor*oration& na+ed in (is *lace& Rodrigo !onteverde& and diso'ned Do+inadorDs allegedl3 illegal and unaut(oriBed acts$ t(at t(e defendants (ave allegedl3 ,(arassed, IVO to co+*l3 'it( Do+inadorDs contracts and to co+e to a settle+ent 'it( t(e+. 470 pra!ed for the issuance of a temporar! restraining order or $rit of preliminar! injunction to sto* t(e defendants fro+ (arassing IVO 'it( t(eir insistent de+ands to recogniBe t(e contracts entered into %3 Do+inador and fro+ *ortra3ing t(e IVO as one t(at defaults on its contracts and o%ligations and (as fallen into %ad ti+es and fro+ interfering 'it( IVODs nor+al conduct of %usiness. IVO also *ra3ed t(at t(e defendants *a3 it da+ages 'ort( +ore t(an P21!. Res*ondent .udge Soriano aut(oriBed IVO to effect e7traterritorial service of su++ons to all t(e defendants t(roug( D;" P(ili**ines Cor*. Pursuant to t(at order& t(e *etitioners 'ere served 'it( su++ons and co*3 of t(e co+*laint %3 D;" courier service. On A*ril 25& 1/?:& 'it(out su%+itting to t(e courtDs 4urisdiction and onl3 for t(e *ur*ose of o%4ecting to said 4urisdiction over t(eir *ersons& t(e *etitioners filed +otions to dis+iss t(e co+*laint against t(e+ on t(e ground t(at t(e e7traterritorial service of su++ons to t(e+ 'as i+*ro*er and t(at (ence t(e court did not ac1uire 4urisdiction over t(e+. )(e court denied t(eir +otions to dis+iss and u*(eld t(e validit3 of t(e e7traterritorial service of su++ons to t(e+ on t(e ground t(at ,t(e *resent action relates to *ro*ert3 rig(ts '(ic( lie in contracts 'it(in t(e P(ili**ines& or '(ic( defendants clai+ liens or interests& actual or inc(oate& legal or e1uita%le. And one of t(e reliefs de+anded consists& '(oll3 or in *art& in e7cluding t(e defendants fro+ an3 interest in suc( *ro*ert3 for t(e reason t(at t(eir transactions 'it( *laintiffDs for+er *resident are ultra vires., -urt(er+ore& ,as foreign cor*orations doing %usiness in t(e P(ili**ines 'it(out a license& t(e3 o*ened t(e+selves to suit %efore P(ili**ine courts& *ursuant to Sec. 100 of t(e Cor*oration Code of t(e P(ili**ines., )(e *etitionersD +otions for reconsideration of t(at order 'ere also denied %3 t(e court. ;ence t(is *etition for certiorari 'it( a *ra3er for t(e issuance of a te+*orar3 restraining order. ISSUE >O< t(e e7tra territorial service of su++ons 'as *ro*er

A2010 Avena
HELD NO. Section 1:& Rule 14 of t(e Rules of Court *rovides onl3 4 instances in '(ic( e7traterritorial service of su++ons is *ro*er& na+el3@ I@3A K-en -e %c i!n %&&ec # -e pe"#!n%* # % ,# !& -e p*%in i&&#= @9A K-en -e %c i!n "e*% e# !, !" -e #,7.ec !& K-ic- i#, p"!pe" ( Ki -in -e P-i*ippine#, in K-ic- -e )e&en)%n -%# !" c*%iD# % *ien !" in e"e# , %c ,%* !" c!n in+en = @1A K-en -e "e*ie& )eD%n)e) in #,c- %c i!n c!n#i# #, K-!**( !" in p%" , in eCc*,)in+ -e )e&en)%n &"!D %n( in e"e# in p"!pe" ( *!c% e) in -e P-i*ippine#= %n) @:A K-en -e )e&en)%n n!n-"e#i)en J# p"!pe" ( -%# 7een % %c-e) Ki -in -e P-i*ippine#I )(e co+*laint in t(is case does not involve t(e *ersonal status of t(e *laintiff& nor an3 *ro*ert3 in t(e P(ili**ines in '(ic( t(e defendants (ave or clai+ an interest& or '(ic( t(e *laintiff (as attac(ed. )(e action is *urel3 an action for in4unction to restrain t(e defendants fro+ enforcing against IVO 5,a%using and (arassing,6 its contracts for t(e deliver3 of coconut oil to t(e defendants& and to recover fro+ t(e defendants P21 +illion in da+ages for suc( ,(arass+ent., I i# c*e%"*( % pe"#!n%* %c i!n %# Ke** %# %n %c i!n in persona$, n! %n %c i!n in "eD !" *uasi in re$. "An action in personam is an action against a person on the asis of his personal lia ilit!# $hile an action in remedies is an action against the thing itself# instead of against the person." A personal action is one rought for the recover! of personal propert!# for the enforcement of some contract or recover! of damages for its reach# or for the recover! of damages for the commission of an injur! to the person or propert!. !s the civil case filed is a personal action( personal or su&stituted service of su$$ons on the defendants( not e traterritorial service( is necessar% to confer jurisdiction on the court. !oranDs Co++ents on t(e Rules of Court@ As a general rule& '(en t(e defendant is not residing and is not found in t(e P(ili**ines& t(e P(ili**ine courts cannot tr3 an3 case against (i+ %ecause of t(e i+*ossi%ilit3 of ac1uiring 4urisdiction over (is *erson unless (e voluntaril3 a**ears in court. 8ut& '(en t(e action affects t(e *ersonal status of t(e *laintiff residing in t(e P(ili**ines& or is intended to seiBe or dis*ose of an3 *ro*ert3& real or *ersonal& of t(e defendant located in t(e P(ili**ines& it +a3 %e validl3 tried %3 t(e P(ili**ine courts& for t(en& t(e3

Prof. Victoria A.

;B

(ave 4urisdiction over t(e res& i.e.& t(e *ersonal status of t(e *laintiff or t(e *ro*ert3 of t(e defendant and t(eir 4urisdiction over t(e *erson of t(e non resident defendant is not essential. Venue in suc( cases +a3 %e laid in t(e *rovince '(ere t(e *ro*ert3 of t(e defendant or a *art t(ereof involved in t(e litigation is located. 4n an action for injunction# e%traterritorial service of summons and complaint upon the non.resident defendants cannot su ject them to the processes of the regional trial courts $hich are po$erless to reach them outside the region over $hich the! e%ercise their authorit! =Sec. D.a# 4nterim Aules of Court; Sec. 21# su par. 1# @.P. @lg. 12K>. E%traterritorial service of summons $ill not confer on the court jurisdiction or po$er to compel them to o e! its orders. ?either ma! the court ! e%traterritorial service of summons ac,uire jurisdiction to render and enforce a mone! judgment against a non.resident defendant $ho has no propert! in the Philippines for "the fundamental rule is that jurisdiction in personam over non.residents# so as to sustain a mone! judgment# must e ased upon personal service $ithin the state $hich renders the judgment ." Res*ondentsD contention t(at ,t(e action %elo' is related to *ro*ert3 'it(in t(e P(ili**ines& s*ecificall3 contractual rig(ts t(at *etitioners are enforcing against IVO, is s*ecious for the "contractual rights" of the petitioners are not propert! found in the Philippines for the petitioners have not filed an action in the local courts to enforce said rights. +he! have not su mitted to the jurisdiction of our courts. )(e lo'er court invoAed Section 00 of t(e Cor*oration Code '(ic( *rovides t(at a ,foreign cor*oration transacting %usiness in t(e P(ili**ines 'it(out a license +a3 %e sued or *roceeded against %efore P(ili**ine courts or ad+inistrative tri%unal on an3 valid cause of action recogniBed under P(ili**ine la's., It assu+ed t(at t(e *etitioners are doing %usiness in t(e P(ili**ines& '(ic( allegation t(e latter denied. #ven if t(e3 can %e considered as suc(& t(e Cor*oration Code did not re*eal t(e rules re1uiring *ro*er service of su++ons to suc( cor*orations as *rovided in Rule 14 of t(e ROC and Section 12? of t(e Cor*oration Code. )(e res*ondent courtDs finding t(at& %3 filing +otions to dis+iss& t(e *etitioners (3*ot(eticall3 ad+itted t(e allegations of t(e co+*laint t(at t(e3 are doing %usiness in t(e P(ili**ines 'it(out an3 license& and t(at t(e3 +a3 %e served 'it( su++ons and ot(er court *rocesses t(roug( t(eir agents or re*resentatives enu+erated in *aragra*( 2 of t(e

Civil Procedure Digest

co+*laint& is contradicted %3 its order aut(oriBing IVO to su++on t(e+ %3 e7traterritorial service& a +ode of service '(ic( is resorted to '(en t(e defendant is not found in t(e P(ili**ines& does not transact %usiness (ere& and (as no resident agent on '(o+ t(e su++ons +a3 %e served. Disposition. )(e e7traterritorial service of su++ons on t(e *etitioners is (eld to %e i+*ro*er& (ence null and void. )(e *etition for certiorari is granted. )(e orders of .udge Soriano are set aside. )(e co+*laint is dis+issed as against t(e *etitioners for failure of t(e court to ac1uire 4urisdiction over t(e+.

A2010 Avena
Rule 14 of ROC6 t(erefore& t(e court did not ac1uire 4urisdiction over (is *erson so t(e trial and t(e decision 'ere null and void. ;is verified +otion 'as denied& !-R 'as re4ected. ISSUE >O< t(e su++ons in a suit in *ersona+ against a resident of t(e P(ili**ines te+*oraril3 a%sent +a3 %e validl3 effected %3 su%stituted service under Sec. ? Rule 14 5on residents te+*oraril3 out of t(e P(ili**ines6 HELD 6ON %"+,Den -% Sec3; @in "e*% i!n ! #ec32A i# -e #!*e p"!'i#i!n -% +!'e"n# #,DD!n# ,p!n % )e&en)%n eDp!"%"i*( %7#en in %n %c i!n in pe"#!n%D? su%stituted service M out of t(e P(ili**ines is %ut one of t(e +odes of effective service to %ring a defendant in court. )(e nor+al +et(od of service of su++ons on one te+*oraril3 a%sent is %3 su%stituted service. Personal service outside t(e countr3 and service %3 *u%lication are not ordinar3 +eans of su++oning defendants. in suits in *ersona+& t(e +ore circuitous *rocedure delineated in Sections 1: and 1? is resorted to %3 a *laintiff if defendant2s d'elling (ouse or residence or *lace of %usiness in t(is countr3 is not Ano'n$ or& if Ano'n& service u*on (i+ cannot %e (ad t(ereat u*on t(e ter+s of Sec?. Since *ersonal service is i+*ossi%le& resort to su%stituted service %eco+es a necessit3. RO< fact t(at 4udg+ent (as %een long final@ t(e 4udg+ent en4o3s t(e *resu+*tion of regularit3. It is& unless striAen do'n& entitled to res*ect. ?on ,uieta movere. 8ecause F*u%lic *olic3 and sound *ractice de+and t(at& at t(e risA of occasional errors& 4udg+ents of courts s(ould %eco+e final at so+e definite date fi7ed %3 la'.L Disposition. Orders affir+ed.

Prof. Victoria A.

;3

MONTALBAN V. MAOIMO 99 SCRA 3B2B SANCHEZ, M%"c- 34, 3>5;

NATURE A**eal fro+ t(e orders of C-I !anila FACTS -r. =erardo !a7i+o 'as involved in a +otor ve(icle accident '(ere t(e son of t(e *etitioners suffered in4uries. Petitioners filed suit against -r. !a7i+o for da+ages. Su++ons 'ere served at t(e !ala%on Paris( '(ere -r. !a7i+o 'as allegedl3 residing. ;o'ever& -r. !a7i+o 'as in #uro*e '(en t(e su++ons 'ere served& -r. 8autista 'as t(e one '(o received t(e su++ons. -r. 8autista 'rote to t(e ClerA of Court of C-I !anila infor+ing (i+ t(at -r. !a7i+o 'as in #uro*e. On Plaintiff2s +otion& lo'er court declared -r. !a7i+o in default& sentenced -r. !a7i+o to *a3 for da+ages. )(e !ontal%ans even 'rote to -r. !a7i+o at t(e !ala%on Cat(olic C(urc( infor+ing (i+ of t(e lo'er court2s decision and re1uesting (i to co+*l3 'it( t(e decision. -r. !a7i+o re*lied t(at (e 'as not a'are of t(e civil case against (i+ and t(at (e 'as ac1uitted in t(e cri+inal case. De*ut3 S(eriff of RiBal notified -r. !a7i+o of t(e issuance of 'rit of e7ecution and de+anded *a3+ent. Return to 'rit e7*ressed t(at -r. !a7i+o is Ffinanciall3 (ard u*L and (ad no *ro*ert3. Alias 'rit of e7ecution issued. Co*3 received %3 -r. !a7i+o. De*ut3 S(eriff attac(ed and levied on a residential (ouse in Caloocan allegedl3 %elonging to -r. !a7i+o. After 2 3ears& 2 +ont(s& -r. !a7i+o ad+ittedl3 learned of lo'er court2s decision and filed for A<<I"!#<) O- #<)IR# PROC##DI<=S on verified +otion on t(e grounds t(at t(e su++ons 'ere not dul3 served 5%ased on t(en Sec.:& Rule : and Sec1?&

t(e latter2s estate %3 t(e C-I of Ce%u. As suc(& (e filed a co+*laint against (is (alf si%lings& t(e s*ouses Alvaro Pastor& .r. and !aria #lena Ac(aval& and Sofia !idgel3& '(o 'ere all at t(at ti+e citiBens of S*ain and residing in t(at countr3. )(e suit also na+ed Atlas !ining as co res*ondent. )(e suit 'as to settle t(e 1uestion of o'ners(i* over certain *ro*erties and rig(ts in so+e +ining clai+s as Hue+ada %elieved t(at t(ose *ro*erties %elong to t(e estate of Alvaro Pastor& Sr. Hue+ada& on (is o'n& caused e7traterritorial service of su++ons to %e +ade t(roug( t(e De*art+ent of -oreign Affairs and t(e P(ili**ine #+%ass3 in !adrid& S*ain& '(ic( effected t(e service of t(e su++ons t(roug( registered +ail u*on De !idgel3 and Pastor& .r. at t(eir res*ective addresses in Alicante and 8arcelona. 8ot( De !idgel3 and Pastor entered a s*ecial a**earance and filed a +otion to dis+iss on t(e ground of lacA of 4urisdiction as t(e3 are non residents. )(e3 furt(er alleged t(at earnest efforts to'ard a co+*ro+ise (ave not %een +ade as re1uired in t(e Civil Code in suits %et'een +e+%ers of t(e sa+e fa+il3& )(e +otion 'as denied %3 .udge -erandos and (e ruled t(at t(e res*ondents 'ere *ro*erl3 su++oned. )(e su%se1uent +otion for reconsideration 'as denied %3 -erandos indicating in t(e order t(at t(e action of Hue+ada 'as for t(e recover3 of real *ro*ert3 and real rig(ts. )(e res*ondents 'ere instructed to file t(eir ans'er. De !idgel3 filed t(is action 'it( t(e Su*re+e Court. ISSUE0S >O< .udge -erandos gravel3 a%used (is discretion in den3ing De !idgel32s +otion to dis+issed %ased on t(e lacA of 4urisdiction over (er *erson. HELD <o. )(e fact t(at s(e alleged as a ground for dis+issal t(e lacA of earnest effort to co+*ro+ise is dee+ed as a%andon+ent of (er s*ecial a**earance and as voluntar3 su%+ission to t(e courts 4urisdiction. F>(en t(e a**earance is %3 +otion for t(e *ur*ose of o%4ecting to t(e 4urisdiction of t(e court over t(e *erson& it +ust %e for t(e sole and se*arate *ur*ose of o%4ecting to t(e 4urisdiction of t(e court. If t(e +otion is for an3 ot(er *ur*ose t(an to o%4ect to t(e 4urisdiction of t(e court over (is *erson& (e t(ere%3 su%+its (i+self to t(e 4urisdiction of t(e court& #ven if t(e lo'er court did not ac1uire 4urisdiction

DE MID/ELY VS FERANDOS 5: SCRA 91 AEUINO, M%( 31, 3>24

NATURE Original Actions. Certiorari and conte+*t. FACTS Hue+ada& allegedl3 t(e illegiti+ate son of Alvaro Pastor& Sr.& 'as a**ointed as s*ecial ad+inistrator of

Civil Procedure Digest

over De !idgel3& (er +otion to dis+iss 'as *ro*erl3 denied %ecause Hue+ada2s action against (er +a3%e regarded as a 1uasi in re+ '(ere 4urisdiction over t(e *erson of a non resident defendant is not necessar3 and '(ere t(e service of su++ons is re1uired onl3 for t(e *ur*ose of co+*l3ing 'it( t(e re1uire+ent of due *rocess. Huasi in re+ is an action %et'een *arties '(ere t(e direct o%4ect is to reac( and dis*ose of *ro*ert3 o'ed %3 t(e *arties or of so+e interest t(erein. )(e SC cited t(e PerAins case as a *recedent. In t(at case& it ruled t(at in a 1uasi in re+ action 4urisdiction over a non resident defendant is not essential. )(e service of su++ons %3 *u%lication is re1uired +erel3 to satisf3 t(e constitutional re1uire+ent of due *rocess. )(e 4udg+ent of t(e court 'ould settle t(e title to t(e *ro*erties and to t(at e7tent it *artaAes of t(e nature of 4udg+ent in re+. )(e 4udg+ent is confined to t(e res 5*ro*erties6 and no *ersonal 4udg+ent could %e rendered against t(e non resident. It s(ould %e noted t(at t(e civil case filed %3 Hue+ada is related to a testa+entar3 *roceeding as it 'as filed for t(e *ur*ose of recovering t(e *ro*erties '(ic( in t(e understanding of Hue+ada& %elonged to t(e estate of t(e "ate Pastor& Sr. and '(ic( 'ere (eld %3 De !idgel3 and (er %rot(er. Disposition Petition is dis+issed

A2010 Avena
t(e +ortgaged car (ad not %een delivered to SalaBar %3 A%el. A 'rit of attac(+ent 'as issued and levied on a (ouse and lot in "as Pinas& registered in A%elDs na+e. Petitioner (ad %een continuousl3 residing in said (ouse and clai+s o'ners(i*& (aving allegedl3 *aid for it 'it( (er o'n earnings. )(e )C denied t(e res*ondentDs +otion to declare A%el in default %ut directed it to ,taAe ste*s to effect service of su++ons and co+*laint u*on defendant& '(ose '(erea%outs in t(e IS 'as unAno'n. )(e )C later dis+issed t(e co+*laint of -ilinvest for failure to serve su++ons e7tra territoriall3 u*on A%el des*ite said order. -ilinvest filed an !-R *ra3ing t(at said order %e reconsidered and set aside and t(at A%el %e declared in default and to den3 *etitionerDs +otion for leave. )C granted *etitioner ti+e to file intervention and denied t(e +otion to declare A%el in default. Petitioner intervened& 1uestioning t(e 4urisdiction of t(e )C. Petitioner 'as declared in default for failure to a**ear& as 'as A%el for failing to ans'er t(e co+*laint. )(e court rendered 4udg+ent against A%el& ordering (i+ to *a3 P/:&099.5/ 5e1uivalent to 25J of t(e *rinci*al o%ligation due as li1uidated da+ages K 25J as attorne3Ds fees6. *etitioner elevated t(e case to t(e IAC 5-e%. 2:& 1/?56 '(ic( granted (er *etition for certiorari 'it( *ro(i%ition and set aside t(e )CDs aforesaid decision& ruling t(at *etitioner 'as de*rived of o**ortunit3 to *resent evidence 5including evidence s(e and A%el (ad %een living se*aratel3 since 1/:06. -ilinvest filed a *etition for revie' 'it( t(e SC '(ic( 'as denied. -ilinvest filed a +otion for leave to serve su++ons %3 *u%licatio on A%el& '(ic( t(e court granted& stating t(at *ursuant to Sec. 1:& Rule 14& ,t(e su++ons %e effected out of t(e P(ils. %3 *u%lication in a ne's*a*er of general circulation in t(e P(ils.& to '(ic( t(is +atter +a3 %e assigned after due raffle& for 0 successive da3s. Said defendant 'as ordered to file (is ans'er in Court 'it(in a reasona%le ti+e 5not less t(an 90 da3s after notice6$ t(at t(e CoC send co*ies of t(e su++ons and tills Order %3 registered +ail to last Ano'n address of said defendant in "as Pinas. Plaintiff is ordered to i+*lead Rall3e as co defendant 'it(in 1 +ont( fro+ notice., -ilinvest filed an a+ended co+*laint& t(is ti+e

Prof. Victoria A.
i+*leading *etitioner and Rall3e as additional defendants. Res*ondent court ad+itted t(e a+ended co+*laint and directed service of su++ons and t(e co+*laint u*on A%el at a different last Ano'n address in Anti*olo. Su++ons 'as su**osedl3 served on A%el t(roug( *u%lication in t(e !anila #vening Post according to t(e affidavit of *u%lication of its *resident& 'it( a confusing entr3 in t(e notice of order '(ic( stated t(e "as Pinas address& contradicting t(e Anti*olo address stated %3 t(e )C. Petitioner filed (er ans'er to t(e a+ended co+*laint. A%el and Rall3e filed no ans'er& so -ilinvest filed a +otion to declare t(e+ in default '(ic( res*ondent .udge !ada3ag of t(e R)C of !aAati granted& %ut not as to Rall3e since su++ons (ad not %een served u*on it. Petitoner 'ent on certiorari to t(e CA 5-e%. 9& 1/?:6& assailing as grave a%use of discretion t(e declaration of default of A%el$ CA dis+issed t(e *etition and a su%se1uent !-R& (ence t(is *etiton.

;9

ISSUE 1. >O< res*ondent court ac1uired 4urisdiction over A%el %3 t(e *u%lication of su++ons in t(e !anila #vening Post HELD 1. C#S Ratio As a nonresident defendant& and since t(e suit involves real *ro*ert3 '(erein t(e defendant ostensi%l3 (as an interest and '(ic( t(e *ro*ert3 (as in fact %een attac(ed at t(e instance of *rivate res*ondent& t(e court correctl3 ordered t(e service of su++ons %3 *u%lication in a ne's*a*er of general circulation in suc( *laces and for suc( ti+e as t(e court +a3 order. Alt(oug( it 'ould a**ear t(at *u%lication s(ould (ave %een +ade in a ne's*a*er in t(e IS as it 'ould +ost liAel3 give notice to A%el& suc( a s'ee*ing doctrine 'ould virtuall3 unsettle a long standing inter*retation of t(e aforesaid rule on e7traterritorial service of su++ons %3 *u%lication& as 'ell as its i+*le+entation sanctioned %3 t(e *ractice follo'ed in t(is 4urisdiction. Reasoning )(e instant case is %ased on t(e attac(+ent of defendantDs *ro*ert3& and as suc( is an action 1uasi in re+& '(erein su++ons %3 *u%lication is allo'ed. Suc( is called constructive or su%stituted service& '(ic( does not constitute a service of *rocess in an3 true sense %ut serves as a +eans '(ere%3 t(e o'ner +a3 %e ad+onis(ed t(at

SAHA/UN V CA @MADAYA/0FILINVEST CREDIT CORP.A /.R. NO. 2;19; RE/ALADO= J,ne 1 3>>3
NATURE Petition for certiorari FACTS It 'as alleged t(at *etitionerDs s*ouse& A%el Sa(agun 5Alias A%elardo6& +anager of Rall3e !otor Co.& Inc. 5Rall3e6& +ade it a**ear t(at (is co+*an3 (ad sold a +otor ve(icle to SalaBar '(o issued a *ro+issor3 note for t(e *rice and e7ecuted as securit3 a c(attel +ortgage on said ve(icle in favor of Rall3e. Rall3e& t(roug( A%el& assigned t(e note and c(attel to -ilinvest for valua%le consideration. >(en t(e note +atured& SalaBar failed to *a3& co+*elling -ilinvest to sue. ;o'ever& -ilinvest found t(at

Civil Procedure Digest

(is *ro*ert3 is su%4ect to 4udicial *roceedings and t(at (e s(ould taAe ste*s as (e sees fit to *rotect it. Suc( is re1uired to *(3sicall3 ac1uire 4urisdiction over t(e *erson of t(e defendant and for *ur*oses of fair *la3 %3 infor+ing (i+ of t(e *endenc3 of t(e action against (i+. #ven t(en& t(ere is no guarantee t(at t(e a%sent o'ner s(all receive t(e actual notice$ as suc(& under la'& actual notice is not considered to %e a%solutel3 necessar3 5as (eld in 8anco #s*anol6. Considering t(is& *u%lication in t(e IS 'ould %e all t(e +ore difficult as A%elDs e7act location is unAno'n$ to (ave at (and t(e availa%le ne's*a*ers& researc( t(e la's governing 4udicial *rocesses in eac( state 'ould %e too ta7ing for t(e )C. Still& it 'as (eld in 3e 2idgel! t(at in actions 1uasi in re+& 4urisdiction over t(e *erson of t(e nonresident alien is not essential and service of su++ons is onl3 re1uired to satisf3 due *rocess. Relief in an action against a nonresident defendant '(o c(ooses not to su%+it (i+self to P(il. courts is li+ited to t(e res. )(ere is no s*ecific *roscri*tion against resorting to foreign *u%lication in t(e *lace '(ere t(e defendant resides& %ut *u%lication in a local ne's*a*er s(ould not altoget(er %e interdicted since t(e rule s*ecificall3 aut(oriBes service of su++ons ,in suc( *laces and for suc( ti+e as t(e court concerned +a3 order,. )(e +atter s(ould %e left to t(e sound discretion of t(e )C in eac( *articular case since it (as t(e facts %efore it. Still& t(e *u%lication in t(e !anila #vening Post 'as defective as t(ere 'as no s(o'ing t(at co*ies of t(e su++ons and t(e a+ended co+*laint 'ere dul3 served at t(e defendantDs last Ano' correct address. )(e Court is not inclined to dis+iss t(e case for non co+*liance of *rivate res*ondent to serve t(e a+ended co+*laint to A%el at (is Anti*olo address as t(ere is *ri+a facie 4ustification for e7traterritorial service of su++ons& and trans+ission of co*ies of t(e su++ons to t(e 'rong address is a +atter '(ic( t(e )C can +ore readil3 re+ed3. #ven if A%el is declared in default& (is interest can %e dul3 re*resented %3 t(e non defaulting defendant since a co++on cause of action is involved. Disposition Petition is granted SEPARATE OPINIONS S%"Dien !, J. Vconcurring and dissentingW service of su++ons to t(e 'rong last Ano'n address is a defect '(ic( cannot 4ustif3 an order of default. Assu+ing default 'ere *ro*er& it 'ill not *reclude *etitioner fro+ *resenting (er o'n

A2010 Avena
evidence. ;o'ever& as to e7tra4udicial service of su++ons to a nonresident alien& it is onl3 valid '(en effected in t(e territor3 in '(ic( t(e a%sent defendant +a3 %e found. Sec. 1: 'as in *art& taAen fro+ Sections 0/? and 0// of Act. 1/0& '(ic( in turn 'ere an ado*tion of t(e Code of Civil Procedure of California '(ic( states t(at *ersonal service outside t(e state +ust %e na+ed and designated in t(e *u%lication as +ost liAel3 to give notice to t(e *erson to %e served. Pu%lication in t(e P(ils. is not liAel3 to *rovide notice to a IS resident. As to 8anco #s*anol and De !idgel3@ alt(oug( t(e court ac1uired 4urisdiction over t(e res& t(e res %elongs to t(e defendant& and as suc( (e reserves t(e rig(t to %e (eard '(en (is *ossessions are in *eril. Alt(oug( t(e court cannot a'ard +one3 %3 'a3 of relief& 4udg+ent conde+ning t(e res 'ould 3ield t(e sa+e result& t(at is& lia%ilit3 against t(e defendant. )(is 'ould lead to t(e funda+ental in4ustice of trial in a%sentia& es*eciall3 considering t(e increase in i++igrant -ili*inos.

Prof. Victoria A.

;1

5. B( P,7*ic% i!n -MODE OF SERVICE UPON CERTAIN DEFENDANTS 3. Up!n )!De# ic p"i'% e .,"i)ic%* en i ( PALUWA/AN N/ BAYAN SAVIN/S BANF '#. FIN/ 329 SCRA 313 /ANCAYCO= Ap"i* 39, 3>;>
NATURE Petition for certiorari FACTS Petitioner sued !ercantile -inancing Cor*oration 5!-C6 and *rivate res*ondents& as directors and officers of !-C& for t(e recover3 of +one3 +arAet *lace+ents t(roug( certain *ro+issor3 notes. )(e3 'ere c(arged 4ointl3 and solidaril3 in accordance 'it( Section 01 of t(e Cor*oration Code 5. Su++ons and co*ies of t(e co+*laints 'ere served u*on !-C and *rivate res*ondents at t(e 4t( -loor& ")A 8uilding& <o. 11? Perea Street& !aAati& !etro !anila& '(ic( is t(e stated office address of !-C in

t(e co+*laint& t(roug( its Assistant !anager !r. <asario S. <a4o+ot& .r. '(o acAno'ledged recei*t t(ereof for and in %e(alf of !-C and t(e *rivate res*ondents. )(is is so recited in t(e certification of de*ut3 s(eriff 8ernardo San .uan dated !a3 11& 1/?0. )(e *arties& assisted %3 t(eir counsel& su%+itted a Co+*ro+ise Agree+ent for t(e a**roval of t(e court '(ic( 'as a**roved. Counsel for defendants filed a ,!otion )o Correct Co+*ro+ise Agree+ent, on t(e ground t(at (e erroneousl3 filed t(e Co+*ro+ise Agree+ent in %e(alf of all t(e defendants '(en in fact (e 'as t(e counsel for !-C onl3. 5denied6 S31uia "a' Offices& in %e(alf of *rivate res*ondents Angelo Ting& Teng Su3 >at& Huintin Calderon and .ose .. -errer& .r.& filed a +otion to set aside decision on t(e follo'ing grounds@ a. t(ere 'as no service of su++ons u*on eac( of t(e+ as t(e cor*orate address of t(e cor*oration 'as not t(eir address t(e3 'ere no longer connected t(ere'it($ %. t(at Att3. Aragones (ad no aut(orit3 to re*resent t(e+ in t(e action and co+*ro+ise agree+ent$ c. t(at t(e3 'ere not served co*ies of t(e decision of t(e court$ d. t(at t(e3 learned a%out t(e sa+e onl3 '(en it 'as %eing e7ecuted$ and e. t(at t(e3 did not *artici*ate as directors or officers of !-C in t(e su%4ect transaction. 5denied6 CA reversed !otion for reconsideration 5denied6 ISSUE >O< *rivate res*ondents 'ere *ro*erl3 served 'it( su++ons HELD <O. Ratio Alt(oug( *rivate res*ondents 'ere sued in t(eir ca*acit3 as directors and officers of !-C& t(e3 are& nevert(eless& %eing (eld *ersonall3 lia%le for t(e o%ligation su%4ect of t(e litigation under t(e co+*laint filed %3 *etitioner. ;ence& t(e rule on *ersonal service of su++ons +ust %e o%served in t(at su++ons +ust %e served *ersonall3 on *rivate res*ondents or& if t(e3 refuse to receive t(e sa+e& %3 tendering it to t(e+. It is onl3 '(en t(e defendant cannot %e served *ersonall3 'it(in a reasona%le ti+e t(at su%stituted service +a3 %e resorted to. )(e i+*ossi%ilit3 of

Civil Procedure Digest

*ro+*t service s(ould %e s(o'n %3 stating t(e efforts +ade to find t(e defendant *ersonall3 and t(e fact t(at suc( efforts failed. )(is state+ent s(ould %e +ade in t(e *roof of service. )(is is necessar3 %ecause su%stituted service is in derogation of t(e usual +et(od of service. It (as %een (eld t(at t(is +et(od of service is in derogation of t(e co++on la'$ it is a +et(od e7traordinar3 in c(aracter& and (ence +a3 %e used onl3 as *rescri%ed and in t(e circu+stances aut(oriBed %3 statute., )(us& under t(e controlling decisions& t(e statutor3 re1uire+ents of su%stituted service +ust %e follo'ed strictl3& fait(full3 and full3& and an3 su%stituted service ot(er t(an t(at aut(oriBed %3 t(e statute is considered ineffective. Reasoning )(e *roof of service *re*ared %3 t(e s(eriff does not s(o' t(at suc( *ersonal service of su++ons 'as effected. )(e office address of t(e cor*oration as indicated in t(e co+*laint does not a**ear to %e t(e office address of *rivate res*ondents as t(e3 'ere no longer connected 'it( t(e cor*oration t(en. Personal service of su++ons s(ould (ave %een +ade on t(e+ at t(eir residences as s(o'n in t(e records of t(e Securities and #7c(ange Co++ission and t(e Central 8anA. Instead& t(e s(eriff effected su%stituted service %3 leaving co*ies of t(e su++ons 'it( t(e Assistant !anager of !-C at t(e *lace of %usiness of said cor*oration 'it( '(ic( as a%ove stated *rivate res*ondents 'ere no longer connected. Suc( su%stituted service is not valid. )(ere 'as no co+*liance 'it( t(e re1uire+ents of t(e rule t(at t(ere +ust %e a *revious *ersonal service and a failure to effect t(e sa+e %efore su%stituted service could %e resorted to. As t(e *rivate res*ondents (ave not %een dul3 served 'it( su++ons& t(e trial court never ac1uired 4urisdiction over t(eir *ersons. Disposition. Petition is D#<I#D CIR

A2010 Avena
FACTS On .ul3 1& 1/9:& "eonardo dela Osa soug(t (is reinstate+ent. 'it( full %acA'ages& as 'ell as t(e recover3 of (is overti+e co+*ensation& s'ing s(ift and grave3ard s(ift differentials. Petitioner alleged t(at (e 'as e+*lo3ed %3 res*ondents as 516 *ainter 'it( an (ourl3 rate of Z1.25 fro+ !arc(& 1/94 to <ove+%er& 1/94& inclusive$ 526 (ouse%o3 'it( an (ourl3 rate of Z1.29 fro+ Dece+%er& 1/94 to <ove+%er& 1/95& inclusive$ 506 (ouse%o3 'it( an (ourl3 rate of Z1.00 fro+ Dece+%er& 1/95 to August& 1/99& inclusive$ and 546 cas(ier 'it( an (ourl3 rate of Z1.40 fro+ August& 1/99 to !arc( 2:& 1/9:& inclusive. Res*ondents filed on August :& 1/9: t(eir letter ans'er 'it(out su%stantiall3 den3ing t(e +aterial allegations of t(e %asic *etition %ut inter*osed t(e follo'ing s*ecial defenses t(at res*ondents -acilities !anage+ent Cor*oration and .. S. Dre3er are do+iciled in >aAe Island '(ic( is %e3ond t(e territorial 4urisdiction of t(e P(ili**ine =overn+ent$ t(at res*ondent .. V. Catuira& t(oug( an e+*lo3ee of res*ondent cor*oration *resentl3 stationed in !anila& is 'it(out *o'er and aut(orit3 of legal re*resentation$ and t(at t(e e+*lo3+ent contract %et'een *etitioner and res*ondent cor*oration carries t(e a**roval of t(e DO". On !a3 0& 1/9?. res*ondents filed !)D t(e su%4ect *etition on t(e ground t(at t(is Court (as no .urisdiction over t(e instant case& and on !a3 24& 1/9?& *etitioner inter*osed an o**osition t(ereto. Said +otion 'as denied. ISSUE0S 1. >O< Court can ac1uire 4urisdiction over t(e *ersons of t(e accused *rovided t(at t(e3 are do+iciled %e3ond t(e territorial 4urisdiction of t(e P(ili**ine =overn+ent 2. >O< *etitioner (as %een Ddoing %usiness in t(e P(ili**inesD so t(at t(e service of su++ons u*on its agent in t(e P(ili**ines vested t(e C-I of !anila 'it( 4urisdiction. HELD 1. Ces. >(ile it is true t(e site of 'orA is Identified as >aAe Island& it is e1uall3 true t(e *lace of (ire is esta%lis(ed in !anila. !oreover& '(at is i+*ortant is t(e fact t(at t(e contract of e+*lo3+ent %et'een t(e *arties litigant 'as s(o'n to (ave %een originall3 e7ecuted and su%se1uentl3 rene'ed in !anila& as

Prof. Victoria A.

;:

asserted %3 *etitioner and not denied %3 res*ondents. ;ence& an3 dis*ute arising t(erefro+ s(ould necessaril3 %e deter+ined in t(e *lace or venue '(ere it 'as contracted. 2. t(e *etitioner +a3 %e considered as doing %usuness un t(e P(ili**ines 'it(in t(e t(e sco*e of Section 14& Rule 14 of t(e ROC in co+*liance 'it( la'& t(e *etitioner (ad to a**oint .ai+e V. Catuira& as agent for -!C 'it( aut(orit3 to e7ecute #+*lo3+ent Contracts and receive& in %e(alf of t(at cor*oration& legal services fro+ and %e %ound %3 *rocesses of t(e P(ili**ine Courts of .ustice& for as long as (e re+ains an e+*lo3ee of -!C. It is a fact t(at '(en t(e su++ons for t(e *etitioner 'as served on .ai+e V. Catuira (e 'as still in t(e e+*lo3 of t(e -!C. !r. Catuira 'as a on officer re*resenting *etitioner in t(e P(ili**ines. Aetna Casualt! F Curet! Compan! v Pacific Star -ine M >O< t(e *laintiff a**ellant (as %een doing %usiness in t(e P(ili**ines& considering t(e fact t(at it (as no license to transact %usiness in t(e P(ili**ines as a foreign cor*oration. )(e o%4ect of Sections 9? and 9/ of t(e Cor*oration "a' 'as not to *revent t(e foreign cor*oration fro+ *erfor+ing single acts& %ut to *revent it fro+ ac1uiring a do+icile for t(e *ur*ose of %usiness 'it(out taAing t(e ste*s necessar3 to render it a+ena%le to suit in t(e local courts. It 'as never t(e *ur*ose of t(e "egislature to e7clude a foreign cor*oration '(ic( (a**ens to o%tain an isolated order for %usiness fro+ t(e P(ili**ines& fro+ securing redress in t(e P(ili**ine courts 5!ars(all Co. vs. #lser N Co.& 49 P(il :0&:56. if a foreign cor*oration& not engaged in %usiness in t(e P(ili**ines& is not %anned fro+ seeAing redress fro+ courts in t(e P(ili**ines& a fortiori& t(at sa+e cor*oration cannot clai+ e7e+*tion fro+ %eing sued in P(ili**ine courts for acts done against a *erson or *ersons in t(e P(ili**ines. Disposition >;#R#-OR#& );# P#)I)IO< IS ;#R#8C D#<I#D >I); COS)S A=AI<S) );# P#)I)IO<#R

9. Up!n En i (

F!"ei+n

P"i'% e

J,"i)ic%*

FACILITIES MANA/EMENT V DELA OSA ?/ SCRA 101 !ATASIAR$ !arc( 29& 1/:/
NATURE Petition for revie' on certiorari of t(e decision of t(e

1. Up!n Re#i)en TeDp!"%"i*( A7"!%) MONTALBAN V. MAOIMO @SUPRAA

Civil Procedure Digest

FACTS -r. !a7i+o 'as sued %3 t(e *arents of t(e c(ild (e in4ured during a +otor ve(icle accident. ;e 'as in #uro*e '(en t(e su++ons 'ere served u*on -r. 8autista in t(e !ala%on C(urc( '(ere -r. !a7i+o 'as Ano'n to reside. Since 'as a'a3 '(en trial 'as %eing (eld& (e 'as declared in default and a decision 'as +ade in favor of t(e S*s. After 23& 2+ -r. !a7i+o 1uestioned t(e validit3 of t(e 4udg+ent against (i+& 1uestioning t(e service of su++ons +ade ISSUE >O< t(e su++ons in a suit in *ersona+ against a resident of t(e P(ili**ines te+*oraril3 a%sent +a3 %e validl3 effected %3 su%stituted service under Sec. ? Rule 14 5on residents te+*oraril3 out of t(e P(ili**ines6 HELD YES. In #,i # in pe"#!n%D, c!," # -%'e .,"i#)ic i!n !'e" "e#i)en # eDp!"%"i*( !, !& -e c!,n "(. Reasoning. HISTORY. C!DD!n L%K @P!Ke" C!ncep !& J,"i#)ic i!nA? .urisdiction of Courts to render 4udg+ents in *ersona+ 'as granted on t(eir de facto *o'er over defendant2s *erson. .urisdiction 'as %ased on t(e *o'er to seiBe and i+*rison defendant. C!n inen %* L%K? P"incip*e# !& R!D%n O"i+in? 516 Suits in *ersona+ and t(ose relating to !OVA8"#S M courts of t(e do+icile of t(e defendant (ave general 4urisdiction VActor Aei 5orum Se,uiturW$ 526 actions concerning I!!OVA8"#S@ Courts of t(e situs (ave e7clusive 4urisdiction FOR/ED DOCTRINE@ Do+iciliaries of a state& t(oug( te+*oraril3 out of its territorial 4urisdiction& are A">ACS a+ena%le to suits in *ersona+ so su%stituted service is %inding on a%sent residents. MILLIFEN V MEYER@ F)(e attendant duties& liAe t(e rig(ts and *rivileges incident to do+icile& are n! de*endent on continuous *resence in t(e state. One suc( incident of do+icile is a+ena%ilit3 to suit 'it(in t(e state even during so4ourns 'it(out t(e state& '(ere t(e state 'as *rovided and e+*lo3ed a R#ASO<A8"# !#);OD for a**rising suc( an a%sent *art3 of t(e *roceeding against (i+. 6ON SERVICE OF SUMMONS P DUE PROCESS@ t(e constitutional re1uire+ent of due *rocess e7acts t(at t(e service %e suc( as +a3 %e reasona%l3 e7*ected to give reasona%l3 calculated to give t(e notice desired

A2010 Avena
MILLIFEN V MEYER, supra@ its ade1uac3 so far as due *rocess is concerned is de*endent on >O< t(e for+ of su%stituted service *rovided for suc( cases and e+*lo3ed is R#ASO<A8"C CA"CI"A)#D )O =IV# ;I! AC)IA" <O)IC# of t(e *roceedings and an o**ortunit3 to %e (eard. 6in e"p"e % i!n !& -en Sec; !n #,7# i , e) #e"'ice? Sa+e +eaning s(a*ed out %3 t(e 4uris*rudence of t(e 4urisdiction '(ere it 'as *atterned 5A+erican "egal S3ste+6$ t(e FdefendantL +eans an3 resident of t(e countr3 'it(out distinction as to '(et(er (e is *(3sicall3 *resent or not. on Sec1?& Rule 14& according to C. !ORA<@ Since resident of RP& 4urisdiction +a3 %e ac1uired over (is *erson under Sec?$ #7traterritorial Service also allo$ed. Plaintiff is not dut3 %ound to see to it t(at t(e *erson u*on '(en service 'as actuall3 +ade delivers t(e su++ons to defendant or infor+s (i+ a%out it. )(e la' *resu+es t(at for (i+. It is i++aterial t(at defendant does not in fact receive actual notice. )(is 'ill not affect t(e validit3 of t(e service. A +an te+*oraril3 a%sent fro+ t(is countr3 leaves a definite *lace of residence& a d'elling '(ere (e lives& a local %ase to '(ic( an3 in1uir3 a%out (i+ +a3 %e directed and '(ere (e is %ound to return. Disposition. Orders affir+ed.

Prof. Victoria A.

;4

- On 22 !arc( 1/::& Arte+io 8altaBar instituted Civil

:. Up!n De&en)%n K-!#e i)en i (0K-e"e%7!, # ,n8n!Kn BALTAZAR VS CA @/OOD EARTH ENTERPRISESA /.R. N!. 2;29; FELICIANO= DeceD7e" ;, 3>;;
N% ,"e Petition for revie' on certiorari to annul CA decision FACTS - )'o *arcels of land located in 8arrio San Isidro& Parana1ue 'ere ad4udicated to "orenBo !olera *ursuant to t(e decree in a land registration case %3 t(e C-I of RiBal acting as a cadastral court. )(e3 'ere titled in t(e na+e of "orenBo !olera& under Original Certificate of )itle 5OC)6 <o. 1?99. On 15 August 1/95& t(e *arcels of land 'ere ac1uired %3 =ood #art( fro+ successors in interest of "orenBo !olera. A transfer of Certificate title 'as issued in t(e na+e of =ood #art(. -

Case <o. 5552 P against =ood #art( &!" )ec*%"% i!n !& !Kne"#-ip %n) "ec!n'e(%nce of t(e *arcels of land %efore t(e C-I& RiBal. 8altaBar traced (is clai+ed rig(ts fro+ an alleged vast S*anis( land grant to one Don ;er+ogenes RodrigueB& =overnor =eneral of Intra+uros& do'n to a deed of sale over t(e su%4ect lots allegedl3 e7ecuted %3 one Pedro Asedillo 5for '(ose +ot(er& 8altaBar (ad %een a tenant s(aring in t(e rice (arvest fro+ t(e lots6 )(e De*ut3 S(eriff of t(e trial court& !r. #rnesto Pre& received a co*3 of t(e su++ons and co+*laint for service on =ood #art( at its address set fort( in t(e co+*laint 999 !uelle de 8inondo& !anila. On 1 A*ril 1/::& t(e De*ut3 S(eriff *re certified in (is S(eriffs Return t(at@ not'it(standing t(ree atte+*ts +ade %3 t(e undersigned De*ut3 S(eriff& *articularl3 on !arc( 25& 2: and 00& 1/::& to serve t(e su++ons and co*3 of t(e co+*laint u*on t(e defendant =ood #art( #nter*rises& Inc. at t(e given address& t(e sa+e (as failed as according to infor+ation defendant Cor*oration (as never (eld office t(ereat and its *resent office address is unAno'n. On t(e sa+e date& 8altaBar filed a +otion for leave to serve t(e su++ons and a co*3 of t(e co+*laint u*on t(erein defendant =ood #art( %3 *u%lication. )(e trial court granted 8altaBarDs +otion. Pu%lication of t(e su++ons and t(e co+*laint in t(e ,)i+es .ournal&, a ne's*a*er of general circulation& for 0 consecutive 'eeAs 'as effected on 9& 10 and 20 August 1/::. Su%se1uentl3 t(e trial court& on +otion of 8altaBar and u*on finding t(at =ood #art( (ad failed to file its ans'er 'it(in t(e si7t3 5906 da3 *eriod counted fro+ t(e da3 follo'ing t(e last da3 of t(e *u%lication& declared =ood #art( ,as if in default, and allo'ed 8altaBar to *resent (is evidence e7 *arte 10 da3s later t(e trial court t(en issued t(e 1uestioned 4udg+ent %3 default against =ood #art( '(ic(@ 16 declared 8altaBar true and o'ner of t(e *ro*ert3 covered %3 )C) <o. 1/104?& 26 ordered =ood #art( to reconve3 t(at *ro*ert3 to 8altaBar and& s(ould =ood #art( fail so to reconve3& 06 decreed t(e cancellation of )C) <o. 1/104?$ and 46 re1uired t(e Register of Deeds of RiBal to issue a ne' )C) in t(e na+e of 8altaBar. )(ese 'ere done accordingl3 all 'it(out t(e Ano'ledge of =ood #art(.

Civil Procedure Digest

- 8altaBar lost no ti+e at all in selling t(e land so titled in (is na+e to Aurora =alveB& RiBaliana =ar+ents& Inc. and to 8=8 Develo*+ent Cor*orationOn / August 1/:/& =ood #art( instituted a co+*laint for annul+ent of t(e 4udg+ent in Civil Case <o. 5552 P and for reconve3ance& against Arte+io 8altaBar and (is vendees Aurora =alveB and 8=8 Develo*+ent Cor*oration& '(ic( co+*laint 'as docAeted as Civil Case <o. PH :410 P& in t(e Court of -irst Instance of RiBal& 8ranc( 2?& t(e sa+e court '(ic( (ad issued t(e 4udg+ent %3 default against =ood #art(. =ood #art( later i+*leaded 8altaBarDs t(ird vendee& RiBaliana =ar+ents& Inc. as an additional defendant. - /ood Earth assailed the judgment as null and void# upon the ground that the trial court had not ac,uired jurisdiction over the person of /ood Earth. 4t $as urged ! /ood Earth that the suit commenced ! @alta&ar $as an action in personam $hich re,uired personal service of summons; hence# service of summons ! pu lication $as improper and un$arranted in this case. 4t $as also urged ! /ood Earth that -and Aegistration 3ecree ?o. ?.)IEH)# ! virtue of $hich 0C+ ?o. 1JLL $as issued to -oren&o 2olera# predecessor.in.interest of /ood Earth# ecame incontroverti le one !ear after its registration on H 5e ruar! 1KHK. - )(e trial court rendered 4udg+ent against =ood #art(. It (eld t(at t(e trial court '(ic( issued t(e 4udg+ent %3 default (ad ac1uired 4urisdiction over t(e *erson of defendant =ood #art( t(roug( service of su++ons %3 *u%lication$ t(at t(e suit %roug(t %3 8altaBar against =ood #art( 'as an action ,uasi in rem suc( t(at service of su++ons %3 *u%lication 'as a**ro*riate$ t(at "orenBo !olera& t(e original registered o'ner of t(e su%4ect lands& 'as not an indis*ensa%le *art3 to t(e suit %roug(t against =ood #art($ t(at t(e action instituted %3 =ood #art( 'as %arred %3 res 4udicata$ and t(at defendants =alveB& 8=8 Develo*+ent Cor*oration and RiBaliana =ar+ents& Inc. 'ere *urc(asers in good fait( and for value. - CA reversed )C2s decision and directed t(e defendants to reconve3 t(e *arcels of land in 1uestion to =ood #art( free fro+ all liens and encu+%rances. ;ence t(is Petition for Revie' instituted %3 8altaBar and =alveB. ISSUE

A2010 Avena
>O< t(e service of su++ons %3 *u%lication u*on res*ondent =ood #art( 'as *ro*er. HELD )(e regular +ode of serving su++ons u*on a *rivate do+estic cor*oration 5i.e.& a *rivate cor*oration organiBed under P(ili**ine la' and (ence registered 'it( t(e Securities and #7c(ange Co++ission6 is governed %3 Section 10 of Rule 14 of t(e Revised Rules of Court. )(e regular +ode& in ot(er 'ords& of serving su++ons u*on a *rivate P(ili**ine cor*oration is %3 personal service upon one of the officers of such corporation identified in Section 1D. 5or the purpose of receiving service of summons and eing ound ! it# a corporation is 4dentified $ith its agent or officer $ho under the rule is designated to accept service of process. ")(e cor*orate *o'er to receive and act on suc( service& so far as to +aAe it Ano'n to t(e cor*oration& is t(us vested in suc( officer or agent., A strict compliance $ith the mode of service is necessar! to confer jurisdiction of the court over a corporation. +he purpose is to render it reasona l! certain that the corporation $ill receive prompt and proper notice in an action against it or to insure that the summons e served on a representative so integrated $ith the corporation that such person $ill 'no$ $hat to do $ith the legal papers served on him. It is not dis*uted t(at De*ut3 S(eriff Pre did not co+*l3 and did not atte+*t to co+*l3 'it( t(e re1uire+ent of Section 10 of Rule 14. Since *ersonal service of su++ons 'as clearl3 not effected u*on =ood #art(& 'e co+e to t(e 1uestion of '(et(er t(e su%stituted service %3 *u%lication *ur*orted to (ave %een effected %3 t(e trial court in Civil Case <o. 5552 P 'as *ro*er and effective to vest 4urisdiction u*on suc( court over t(e *erson of =ood #art(. T-e &i"# p!in -% D,# 7e D%)e in -i# c!nnec i!n i# -% -e p"!p"ie ( !& #e"'ice !& #,DD!n# 7( p,7*ic% i!n i# n! )epen)en ,p!n -e ec-nic%* c-%"%c e"i<% i!n !& -e %c i!n 7ein+ ini i% e) %# %n %c i!n in re$ or *uasi in re$. T-e p"!p"ie ( !& #e"'ice 7( p,7*ic% i!n i# )epen)en , "% -e", ,p!n c!Dp*i%nce Ki - -e "eH,i"eDen # !& -e %pp*ic%7*e p"!'i#i!n# !& -e R,*e# !& C!," . >e note secondl3& t(at service of su++ons of *u%lication +a3 %e allo'ed under Rule 14 of t(e Revised Rules of Court in t(ree 0 different situations. )(e first is t(e

Prof. Victoria A.

;5

situation of an ,unAno'n defendant, addressed %3 Section 19 of Rule 14. )(e second refers to situations '(ere ,e7tra territorial service, is *ro*er& governed %3 Section 1: of Rule 14. )(e t(ird situation is t(at of a resident of t(e P(ili**ines '(o is te+*oraril3 out of t(e P(ili**ines and '(o +a3 %e served 'it( su++ons %3 *u%lication under Section 1?. #ven a cursor3 e7a+ination of Sections 19&1: and 1? of Rule 14 a%ove 'ill at once reveal t(at& if at all& service of su++ons %3 *u%lication u*on =ood #art( could onl3 %e done under Section 19. Section 1: can find a**lication onl3 '(ere t(e defendant is %ot( a non resident and not actuall3 found in t(e P(ili**ines. Since =ood #art( is a cor*oration organiBed under t(e P(ili**ine la'& it cannot %e regarded as a non resident cor*oration. Section 1?& u*on t(e ot(er (and& a**ears to conte+*late a defendant '(o is a natural *erson. In an3 case& *etitioner did not *retend t(at =ood #art( 'as at an3 ti+e te+*oraril3 out of t(e P(ili**ines& assu+ing suc( a condition 'ere *ossi%le. Section 19 itself covers t'o 526 distinguis(a%le situations@ '(ere t(e identit! of t(e defendant is unAno'n$ and '(ere t(e address of t(e defendant is unAno'n. Inder Section 19& t(erefore& *etitioner +ust s(o' t(at t(e address of =ood #art( 'as ,unAno'n, and t(at suc( address ,could not %e ascertained %3 diligent in1uir3., In t(e case at %ar& *etitioner acted as if t(e address of =ood #art( 'as ,unAno'n., Petitioner clai+ed t(at =ood #art( could not %e found at t(e address a**earing in t(e )C) issued in t(e na+e of =ood #art(. )(e su+ total of '(at t(e S(eriff actuall3 did& 'as to asA a securit3 guard (e found at 999 !uelle de 8inondo and t(is securit3 guard a**arentl3 *ointed to t(e %uilding director3 '(ere t(e na+e of =ood #art( did not a**ear. It is argued %3 =ood #art( t(at (ad t(e S(eriff in1uired at an3 of t(e offices actuall3 found in t(e %uilding at 999 !uelle de 8inondo& (e 'ould (ave found =ood #art( '(ic( is a cor*oration o'ned or controlled %3 t(e C(ing fa+il3& considering t(at all t(e cor*orations 1uartered at 999 !uelle de 8inondo are C(ing fa+il3 cor*orations. =ood #art(& in ot(er 'ords& did not dis*ute t(at 999 !uelle de 8inondo& !anila 'as its correct cor*orate address. )(e court does not %elieve& t(erefore& t(at t(e address of =ood #art( could %e regarded as ,unAno'n, 'it(in t(e +eaning of Section 19 of Rule 14. !ore i+*ortantl3& it does not %elieve t(at t(e acts of De*ut3 S(eriff Pre satisfied t(e

Civil Procedure Digest

standard of diligent in1uir3D esta%lis(ed %3 Section 19 of Rule 14. De*ut3 S(eriff Pre s(ould (ave Ano'n '(at ever3 la' sc(ool student Ano's& t(at =ood #art( %eing a do+estic cor*oration +ust (ave %een registered 'it( t(e Securities and #7c(ange Co++ission and t(at t(e S#C records 'ould& t(erefore& reveal not 4ust t(e correct address of t(e cor*orate (ead1uarters of =ood #art( %ut also t(e addresses of its directors and ot(er officers. >e %elieve and so (old t(at a litigant or *rocess server '(o (as not gone t(roug( t(e records of t(e S#C cannot clai+ to (ave carried out t(e ,diligent in1uir3, re1uired under Section 19 of Rule 14 of t(e Revised Rules of Court for valid service of su++ons %3 *u%lication u*on a do+estic cor*oration. It +a3 %e noted& finall3& t(at t(e record does not s(o' t(at 8altaBar sent a co*3 of t(e su++ons and t(e order for *u%lication to =ood #art( %3 registered +ail to its last Ano'n address '(ic( 'as 999 !uelle de 8inondo& !anila& as re1uired %3 Section 21 of Rule 14& Revised Rules of Court. >e (old t(at t(e *ur*orted service of su++ons %3 *u%lication u*on =ood #art( in Civil Case <o. 5552 P 'as legall3 and constitutionall3 vitiated and (ence invalid and ineffective to vest 4urisdiction over t(e *erson of =ood #art( u*on t(e trial court& and t(at t(e 4udg+ent t(ere rendered %3 t(at court 'as null and void. It vested no rig(ts u*on 8altaBar and i+*osed no lia%ilities or %urdens u*on =ood #art(. >e agree 'it( t(e res*ondent Court of A**eals t(at t(e trial court in Civil Case <o. PH :410 P fell into *rofound error in not setting aside and annulling t(e 4udg+ent of t(e trial court in Civil Case <o. 5552 P. Disposition. >;#R#-OR#& t(e Petition for Revie' is D#<I#D and t(e Decision dated 14 .anuar3 1/?: of t(e Court of A**eals in C.A. =.R. CV <o. 00104 is A--IR!#D. Costs against *etitioners.

A2010 Avena
ABAD SANTOS= M%( 99, 3>;4
NATURE Petition to revie' to set aside certain orders and restrain t(e res*ondent 4udge fro+ tr3ing Civil Case <o. ::/ ! of t(e defunct C-I of RiBal. FACTS IS (ad a naval %ase in Su%ic& Sa+%ales. )(e %ase 'as one of t(ose *rovided in t(e !ilitar3 8ases Agree+ent %et'een t(e P(ili**ines and t(e IS. IS invited t(e su%+ission of %ids for t(e follo'ing *ro4ects@ 1. Re*air fender s3ste+& Alava >(arf at t(e I.S. <aval Station Su%ic 8a3& P(ili**ines. 2. Re*air t3*(oon da+age to <AS Cu%i s(oreline$ re*air t3*(oon da+age to s(oreline revet+ent& <AV8AS# Su%ic$ and re*air to "e3te >(arf a**roac(& <AV8AS# Su%ic 8a3& P(ili**ines. #ligio de =uB+an N Co.& Inc. res*onded to t(e invitation and su%+itted %ids. IS re1uested it to confir+ its *rice *ro*osals and for t(e na+e of its %onding co+*an3. )(e co+*an3 co+*lied 'it( t(e re1uests. )(e co+*an3 received a letter '(ic( 'as signed %3 Dir. Collins& Contracts Division& <aval -acilities #ngineering Co++and& Sout('est Pacific& De*art+ent of t(e <av3 of t(e Inited States& '(o is one of t(e *etitioners (erein. )(e letter said t(at t(e co+*an3 did not 1ualif3 to receive an a'ard for t(e *ro4ects %ecause of its *revious unsatisfactor3 *erfor+ance rating on a re*air contract for t(e sea 'all at t(e %oat landings of t(e I.S. <aval Station in Su%ic 8a3. )(e letter furt(er said t(at t(e *ro4ects (ad %een a'arded to t(ird *arties. )(e co+*an3 sued t(e IS and !essrs. .a+es #. =allo'a3& >illia+ I. Collins and Ro%ert =o(ier all +e+%ers of t(e #ngineering Co++and of t(e I.S. <av3. )(e co+*laint is to order t(e defendants to allo' t(e *laintiff to *erfor+ t(e 'orA on t(e *ro4ects and& in t(e event t(at s*ecific *erfor+ance 'as no longer *ossi%le& to order t(e defendants to *a3 da+ages. )(e co+*an3 also asAed for t(e issuance of a 'rit of *reli+inar3 in4unction to restrain t(e defendants fro+ entering into contracts 'it( t(ird *arties for 'orA on t(e *ro4ects. )(e defendants entered t(eir s*ecial a**earance ,for t(e *ur*ose onl3 of 1uestioning t(e 4urisdiction of t(is court over t(e su%4ect +atter of t(e co+*laint and t(e *ersons of defendants& t(e su%4ect +atter of t(e co+*laint %eing acts and o+issions of t(e

Prof. Victoria A.

;2

individual defendants as agents of defendant Inited States of A+erica& a foreign sovereign '(ic( (as not given (er consent to t(is suit or an3 ot(er suit for t(e causes of action asserted in t(e co+*laint., Defendants filed a +otion to dis+iss t(e co+*laint '(ic( included an o**osition to t(e issuance of t(e 'rit of *reli+inar3 in4unction. )(e co+*an3 o**osed t(e +otion. )(e trial court denied t(e +otion and issued t(e 'rit. )(e defendants +oved t'ice to reconsider %ut to no avail. ;ence t(e instant *etition '(ic( seeAs to restrain *er*etuall3 t(e *roceedings in Civil Case <o. ::/ ! for lacA of 4urisdiction on t(e *art of t(e trial court. ISSUE >O< trial court (as 4urisdiction HELD <O. )(e traditional rule of State i++unit3 e7e+*ts a State fro+ %eing sued in t(e courts of anot(er State 'it(out its consent or 'aiver. )(is rule is a necessar3 conse1uence of t(e *rinci*les of inde*endence and e1ualit3 of States. 8ut State i++unit3 no' e7tends onl3 to acts 4ure i+*erii. )(e res*ondent 4udge recogniBed t(e restrictive doctrine of State i++unit3 '(en (e said in (is Order den3ing t(e defendantsD 5no' *etitioners6 +otion@ ,A distinction s(ould %e +ade %et'een a strictl3 govern+ental function of t(e sovereign state fro+ its *rivate& *ro*rietar3 or non govern+ental acts., ;o'ever& t(e res*ondent 4udge also said@ ,It is t(e CourtDs considered o*inion t(at entering into a contract for t(e re*air of '(arves or s(oreline is certainl3 not a govern+ental function alt(o it +a3 *artaAe of a *u%lic nature or c(aracter. )(e restrictive a**lication of State i++unit3 is *ro*er onl3 '(en t(e *roceedings arise out of co++ercial transactions of t(e foreign sovereign& its co++ercial activities or econo+ic affairs. Stated differentl3& a State +a3 %e said to (ave descended to t(e level of an individual and can t(us %e dee+ed to (ave tacitl3 given its consent to %e sued onl3 '(en it enters into %usiness contracts. It does not a**l3 '(ere t(e contract relates to t(e e7ercise of its sovereign functions. In t(is case t(e *ro4ects are an integral *art of t(e naval %ase '(ic( is devoted to t(e defense of %ot( t(e Inited States and t(e P(ili**ines& indis*uta%l3 a function of t(e govern+ent of t(e (ig(est order$ t(e3 are not utiliBed for nor dedicated to co++ercial or %usiness *ur*oses.

4. Up!n ! -e"# MOTIONS IN /ENERAL MOTION TO DISMISS UNDER RULE 35 US '. RUIZ 315 SCRA :;2

Civil Procedure Digest

)(at t(e correct test for t(e a**lication of State i++unit3 is not t(e conclusion of a contract %3 a State %ut t(e legal nature of t(e act is s(o'n in S31uia vs. "o*eB& ?4 P(il. 012 51/4/6. In t(at case t(e *laintiffs leased t(ree a*art+ent %uildings to t(e Inited States of A+erica for t(e use of its +ilitar3 officials. )(e *laintiffs sued to recover *ossession of t(e *re+ises on t(e ground t(at t(e ter+ of t(e leases (ad e7*ired& )(e3 also asAed for increased rentals until t(e a*art+ents s(all (ave %een vacated. It (eld@ ,On t(e %asis of t(e foregoing considerations 'e are of t(e %elief and 'e (old t(at t(e real *art3 defendant in interest is t(e =overn+ent of t(e Inited States of A+erica$ t(at an3 4udg+ent for %acA or increased rentals or da+ages 'ill (ave to %e *aid not %3 defendants !oore and )ill+an and t(eir 94 co defendants %ut %3 t(e said I.S. =overn+ent. On t(e %asis of t(e ruling in t(e case of "and vs. Dollar alread3 cited& and on '(at 'e (ave alread3 stated& t(e *resent action +ust %e considered as one against t(e I.S. =overn+ent. It is clear t(at t(e courts of t(e P(ili**ines including t(e !unici*al Court of !anila (ave no 4urisdiction over t(e *resent case for unla'ful detainer. )(e 1uestion of lacA of 4urisdiction 'as raised and inter*osed at t(e ver3 %eginning of t(e action. )(e I.S. =overn+ent (as not given its consent to t(e filing of t(is suit '(ic( is essentiall3 against (er& t(oug( not in na+e. !oreover& t(is is not onl3 a case of a citiBen filing a suit against (is o'n =overn+ent 'it(out t(e latterDs consent %ut it is of a citiBen filing an action against a foreign govern+ent 'it(out said govern+entDs consent& '(ic( renders +ore o%vious t(e lacA of 4urisdiction of t(e courts of (is countr3. )(e *rinci*les of la' %e(ind t(is rule are so ele+entar3 and of suc( general acce*tance t(at 'e dee+ it unnecessar3 to cite aut(orities in su**ort t(ereof., 5At *. 020.6 In S31uia& t(e Inited States concluded contracts 'it( *rivate individuals %ut t(e contracts not'it(standing t(e Inited States 'as not dee+ed to (ave given or 'aived its consent to %e sued for t(e reason t(at t(e contracts 'ere for 4ure i+*erii and not for 4ure gestionis. Disposition >;#R#-OR#& t(e *etition is granted$ t(e 1uestioned orders of t(e res*ondent 4udge are set aside and Civil Case <o. ::/ ! is dis+issed. Costs against t(e *rivate res*ondent. SEPARATE OPINION MAFASIAR, )i##en #?

A2010 Avena
)(e *etition s(ould %e dis+issed and t(e *roceedings in Civil Case <o. ::/ ! in t(e defunct C-I 5no' R)C6 of RiBal %e allo'ed to continue t(erein. >(en t(e I.S. =overn+ent& t(roug( its agenc3 at Su%ic 8a3& confir+ed t(e acce*tance of a %id of a *rivate co+*an3 for t(e re*air of '(arves or s(oreline in t(e Su%ic 8a3 area& it is dee+ed to (ave entered into a contract and t(us 'aived t(e +antle of sovereign i++unit3 fro+ suit and descended to t(e level of t(e ordinar3 citiBen. Its consent to %e sued& t(erefore& is i+*lied fro+ its act of entering into a contract. .ustice and fairness dictate t(at a foreign govern+ent t(at co++its a %reac( of its contractual o%ligation in t(e case at %ar %3 t(e unilateral cancellation of t(e a'ard for t(e *ro4ect %3 t(e Inited States govern+ent& t(roug( its agenc3 at Su%ic 8a3 s(ould not %e allo'ed to taAe undue advantage of a *art3 '(o +a3 (ave legiti+ate clai+s against it %3 seeAing refuge %e(ind t(e s(ield of non sua%ilit3. A contrar3 vie' 'ould render a -ili*ino citiBen& as in t(e instant case& (el*less and 'it(out redress in (is o'n countr3 for violation of (is rig(ts co++itted %3 t(e agents of t(e foreign govern+ent *rofessing to act in its na+e. Constant resort %3 a foreign state or its agents to t(e doctrine of State i++unit3 in t(is 4urisdiction i+*inges undul3 u*on our sovereignt3 and dignit3 as a nation. Its a**lication 'ill *articularl3 discourage -ili*ino or do+estic contractors fro+ transacting %usiness and entering into contracts 'it( Inited States aut(orities or facilities in t(e P(ili**ines '(et(er naval& air or ground forces %ecause t(e difficult3& if not i+*ossi%ilit3& of enforcing a validl3 e7ecuted contract and of seeAing 4udicial re+ed3 in our o'n courts for %reac(es of contractual o%ligation co++itted %3 agents of t(e Inited States govern+ent& al'a3s loo+s large& t(ere%3 (a+*ering t(e gro't( of -ili*ino enter*rises and creating a virtual +ono*ol3 in our o'n countr3 %3 Inited States contractors of contracts for services or su**lies 'it( t(e various I.S. offices and agencies o*erating in t(e P(ili**ines. In t(e case at %ar& t(e efficac3 of t(e contract %et'een t(e I.S. <aval aut(orities at Su%ic 8a3 on one (and& and (erein *rivate res*ondent on t(e ot(er& 'as (onored +ore in t(e %reac( t(an in t(e co+*liance. )(e o*inion of t(e +a4orit3 'ill certainl3 o*en t(e floodgates of +ore violations of contractual o%ligations. A+erican aut(orities or an3 foreign govern+ent in t(e P(ili**ines for t(at +atter& dealing 'it( t(e citiBens of t(is countr3& can

Prof. Victoria A.
convenientl3 seeA *rotective cover under t(e +a4orit3 o*inion. )(e result is disastrous to t(e P(ili**ines.

;;

SEAFDEC V NLRC @LAZA/AA @#,p"%A

NATURE Petition for certiorari to revie' t(e decision of t(e <"RC FACTS S#A-D#C AHD is a de*art+ent of an international organiBation& t(e Sout(east Asian -is(eries Develo*+ent Center. Private Res*ondent "aBaga 'as (ired as a Researc( Associate and eventuall3 %eca+e t(e ;ead of #7ternal Affairs Office of S#A-D#C AHD. ;o'ever& (e 'as ter+inated allegedl3 due to financial constraints %eing e7*erienced %3 S#A-#C AHD. ;e 'as su**osed to receive se*aration %enefits %ut S#A-D#C AHD failed to *a3 *rivate res*ondent (is se*aration *a3 so "aBaga filed a co+*laint for non *a3+ent of se*aration %enefits& *lus +oral da+ages and attorne32s fees 'it( t(e <"RC. In t(eir ANSWER WITH COUNTERCLAIM @NOT MOTION TO DISMISSA& S#A-D#C alleged t(at <"RC (as n! .,"i#)ic i!n !'e" -e c%#e 7ec%,#e? 516 It is an international organiBation$ 526 "aBaga +ust first secure clearances fro+ t(e *ro*er de*art+ents for *ro*ert3 or +one3 accounta%ilit3 %efore an3 clai+ for se*aration *a3 'ill %e *aid 5and clearances (as not %een *aid6 COI<)#RC"AI!@ "aBaga (ad *ro*ert3 accounta%ilit3 and outstanding o%ligation to S#A-D#C AHD a+ounting to P2:& 502.11 and t(at "aBaga 'as not entitled to t(e accrued sicA leave %enefits due to (is failure to avail of t(e sa+e during (is e+*lo3+ent "A@ for "aBaga <"RC@ affir+ed "A& deleted attorne32s fees and actual da+ages S#A-D#C AHD filed !-R& denied ISSUES >O< S#A-D#C AHD is esto**ed fro+ clai+ing t(at t(e court (ad no 4urisdiction HELD <O

Civil Procedure Digest

Ratio. #sto**el does not a**l3 to confer 4urisdiction to a tri%unal t(at (as none over a cause of action. .urisdiction is conferred %3 la'. >(ere t(ere is none& no agree+ent of t(e *arties can *rovide one. Settled is t(e rule t(at t(e decision of a tri%unal not vested 'it( a**ro*riate 4urisdiction is null and void. )(e lacA of 4urisdiction of a court +a3 %e raised at an3 stage of t(e *roceedings& even on a**eal. )(e issue of 4urisdiction is not lost %3 'aiver or %3 esto**el

A2010 Avena
;ence t(e a**eal to t(e SC ISSUE0S 1. >O< t(e CA order setting aside t(e R)C order& '(ic( 'as interlocutor3& is valid 2. >O< t(e ter+s of t(e C(arter Part3& *articularl3 t(e *rovision on ar%itration& %inding on t(e Insurer. HELD 1. Ces. =enerall3& an interlocutor3 order cannot %e t(e su%4ect of a s*ecial civil action on certiorari and *ro(i%ition. . ;o'ever& t(e case %efore us falls under t(e e7ce*tion. >(ile a Court Order deferring action on a +otion to dis+iss until t(e trial is interlocutor3 and cannot %e c(allenged until final 4udg+ent& still& '(ere it clearl3 a**ears t(at t(e trial .udge or Court is *roceeding in e7cess or outside of its 4urisdiction& t(e re+ed3 of *ro(i%ition 'ould lie since it 'ould %e useless and a 'aste of ti+e to go a(ead 'it( t(e *roceedings. 2. Ces. A reading of t(e c(arter Part3 and t(e 8ill of "ading s(o's t(at t(e Insurer is in fact %ound to ar%itration. Clearl3& t(e 8ill of "ading incor*orates %3 reference t(e ter+s of t(e C(arter Part3. It is settled la' t(at t(e c(arter +a3 %e +ade *art of t(e contract under '(ic( t(e goods are carried %3 an a**ro*riate reference in t(e 8ill of "ading 5>(arton Poor& C(arter Parties and Ocean 8ills of "ading 55t( ed.& *. :16. )(is s(ould include t(e *rovision on ar%itration even 'it(out a s*ecific sti*ulation to t(at effect. )(e entire contract +ust %e read toget(er and its clauses inter*reted in relation to one anot(er and not %3 *arts. !oreover& in cases '(ere a 8ill of "ading (as %een issued %3 a carrier covering goods s(i**ed a%oard a vessel under a c(arter *art3& and t(e c(arterer is also t(e (older of t(e %ill of lading& ,t(e %ill of lading o*erates as t(e recei*t for t(e goods& and as docu+ent of title *assing t(e *ro*ert3 of t(e goods& %ut not as var3ing t(e contract %et'een t(e c(arterer and t(e s(i*o'ner, 5In re !arine Sul*(ur Hueen& 490 - 2d ?/& 100 V2d Cir. 1/:2W$ !inistr3 of Co++erce vs. !arine )anAers Cor*. 1/4 -& Su** 191& 190 VS.D.<.C. 1/90W$ =reenstone S(i**ing Co.& S.A. vs. )rans'orld Oil& "td.& 5?? - Su** VD.#l. 1/?4W6. )(e 8ill of "ading %eco+es& t(erefore& onl3 a recei*t and not t(e contract of carriage in a c(arter of t(e entire vessel& for t(e contract is t(e C(arter Part3 5S(ell Oil Co. vs. !I) =ilds& :/0 - 2d 120/& 1212 V5t( Cir. 1/?9W$ ;o+e Insurance Co. vs. A+erican Stea+s(i* Agencies& Inc.& =.R. <o. " 255//& 4 A*ril 1/9?& 20 SCRA 246& and is t(e la' %et'een t(e *arties '(o are %ound %3 its ter+s and condition *rovided t(at t(ese are not

Prof. Victoria A.

;>

contrar3 to la'& +orals& good custo+s& *u%lic order and *u%lic *olic3 5Article 1009& Civil Code6. Disposition Petition for certiorari is denied and t(e 4udg+ent of t(e CA is affir+ed.

BALO V CA @JUD/E ASIS, /ARRIDOA /R N!. 39>2B: CHICO-NAZARIO= Sep eD7e" 1B, 9BB4
NATURE Petition for revie' of CA Resolution under Rule 45 of t(e Rules of Court FACTS co+*laint for .udicial Partition of Real Pro*erties and Accounting 'it( Da+ages 'as filed %3 .osefina =arrido against Il*iano 8alo& "3dia 8alo "u+*as& #ugenio 8alo& Il*iano 8alo& .r.& <ida 8alo !oraleta& <ora 8alo Catano& Saida 8alo& .udit( 8alo !andreBa& Danilo 8alo and Ronilo 8alo& %efore R)C A%u3og& "e3te alleging t(at =arrido and 8alo2s are t(e co o'ners of undivided *arcels of land located at !a3orga& "e3te. According to (er& t(ese lands 'ere originall3 o'ned %3 t(e s*ouses #ugenio 8alo& Sr. and !a. Pasagui 8alo& '(o& at t(e ti+e of t(e filing of t(e co+*laint& 'ere alread3 deceased. )(e 8alo s*ouses 'ere survived %3 t(eir t'o 526 c(ildren& Il*iano& Sr. and !a7i+ino& t(e latter liAe'ise deceased. =arrido is t(e daug(ter of !a7i+ino 8alo and Salvacion Sa%ulao. Il*iano 8alo is t(e son of #ugenio 8alo& Sr. and t(e ot(er *etitioners& t(e c(ildren of Il*iano& are #ugenio2s grandc(ildren. =arrido alleged in (er co+*laint t(at i++ediatel3 u*on t(e deat( of (er grandfat(er& #ugenio Sr.& t(e 8alo2s tooA *ossession of t(e said real *ro*erties 'it(out (er Ano'ledge and consent. ;er uncle and cousins 'ere earnestl3 re1uested %3 =arrido t(at t(e3 co+e u* 'it( a fair and e1ual *artition of t(e *ro*erties left %3 (er grand*arents. )(e 8alo2s outrig(tl3 refused (er *ro*osal. =arrido filed a co+*laint. In lieu of an Ans'er& 8alo2s filed a !otion to Dis+iss on t(e follo'ing grounds@ 516 -ailure to state a cause of action *laintiff& t(oug( daug(ter of !a7i+ino& failed to allege >O< s(e is a legiti+ate c(ild t(us fatal considering A//2 CC and to allo' =arrido to in(erit fro+ t(e estate of t(e s*ouses #ugenio and !aria 8alo in

NATIONAL UNION VS STOLT-NIELSEN 3;: SCRA 5;9 MELENCIO-HERRERA, J.= Ap"i* 95, 3>>B
NATURE Petition to revie'. Certiorari FACTS Inited Coconut C(e+icals s(i**ed on %oard !) Stolt Sce*tre& a tanAer o'ned %3 Stolt <ielsen P(ili**ines 404 tons of distilled C9 C1? fatt3 acid fro+ 8atangas to Rotterda+ <et(erlands.)(e cargo 'as insured 'it( <ational Inion -ire Insurance& an A+erican insurance co+*an3& t(ru its P(ili**ine Agent& A+erican International Inder'riters. I*on arrival and after ins*ection& t(e s(i*+ent 'as found to %e totall3 conta+inated and discolored. )(e Carrier denied t(e clai+ %ut t(e Insurer inde+nified said s(i**er. As su%rogee& t(e insurer filed suit against Carrier %efore t(e R)C to recover3 t(e su+ of P1&91/&49/.21& t(e a+ount *aid to t(e S(i**er. Carrier filed a +otion to dis+iss on t(e ground t(at t(e R)C (ad no 4urisdiction over t(e clai+ t(e sa+e %eing ar%itra%le as *rovided %3 t(e ter+s of t(e C(arter Part3 dated 21 Dece+%er 1/?4 %et'een S(i**er and Parcel )anAers. - Insurer o**osed t(e +otion on t(e ground t(at it 'as not legall3 %ound to su%+it t(e clai+ for ar%itration as t(e ar%itration clause in t(e C(arter Part3 'as not incor*orated into t(e 8ill of "ading. R)C denied t(e +otion to dis+iss %ut issued a resolution on t(e !otion to Dis+iss until trial on t(e +erits since t(e ground alleged in said +otion does not a**ear indu%ita%le. Carrier filed +otion for Certiorari and Pro(i%ition 'it( t(e CA seeAing to nullif3 t(e R)C order '(ic( it set aside.

Civil Procedure Digest

re*resentation of (er fat(er !a7i+ino 8alo 'ould %e to *er+it intestate succession %3 an illegiti+ate c(ild fro+ t(e legiti+ate *arent of (is fat(er& assu+ing t(at s(e is t(e c(ild of !a7i+ino 8alo 526 co+*laint does not s(o' t(at estate (ave %een settled and its o%ligations (ave %een *aid. 506 *ro*erties enu+erated in t(e co+*laint 'ere *roceeded against %3 'a3 of e7ecution to satisf3 a 4udg+ent against #ugenio and !aria 8alo. Su%se1uentl3& Il*iano re*urc(ased t(e *ro*erties and (as %een o*enl3& e7clusivel3 and adversel3 in *ossession of t(e *ro*erties R)C denied t(e +otion to dis+iss for lacA of +erit and said t(at t(e co+*laint clearl3 states t(at t(e late #ugenio 8alo& Sr.& and !aria Pasagui 8alo (ad t'o 526 c(ildren& na+el3@ Il*iano& Sr. and !a7i+ino. )(e *laintiff is t(e daug(ter of t(e late !a7i+ino 8alo and Salvacion Sa%ulao$ '(ile t(e defendants are c(ildren of t(e late Il*iano 8alo& Sr. and -elicidad Su*erio. )(e co+*laint enu+eratesEanne7es 10 ta7 declarations in t(e na+e of #ugenio 8alo& Sr. )(e *laintiff as an (eir *ra3s t(at t(ese *arcels of land %e *artitioned in accordance 'it( Article /?2 of t(e Civil Code '(ic( states@ F)(e grandc(ildren and ot(er descendants s(all in(erit %3 rig(t of re*resentation& and if an3 one of t(e+ s(ould (ave died& leaving several (eirs& t(e *ortion *ertaining to (i+ s(all %e divided a+ong t(e latter in e1ual *ortions.L <o evidence +a3 %e alleged or considered to test t(e sufficienc3 of t(e co+*laint e7ce*t t(e ver3 facts *leaded t(erein. It 'ould %e i+*ro*er to in4ect into t(e allegation& facts not alleged and use t(e+ as %asis for t(e decision on t(e +otion. )(e Court is not *er+itted to go %e3ond and outside of t(e allegations in t(e co+*laint for data or facts. )(erefore& t(e allegation of illegiti+ac3 and clai+ of a%solute o'ners(i* are +odifications and unreasona%le inferences. If t(ere is dou%t to t(e trut( of t(e facts averred in t(e co+*laint& t(e Court does not dis+iss t(e co+*laint %ut re1uires an ans'er and *roceeds to (ear t(e case on t(e +erit. 8alo2s filed an !-R '(ic( t(e R)C denied 8alo2s filed a Petition for Certiorari %efore t(e CA. After t(e filing of Co++ent and ot(er *leadings& t(e case 'as dee+ed su%+itted for decision. In a resolution& t(e CA denied due course to t(e *etition and accordingl3 dis+issed t(e sa+e and 4ustified t(e dis+issal in t(e follo'ing +anner@ It is an esta%lis(ed rule t(at an order den3ing a +otion to dis+iss is %asicall3 interlocutor3 in c(aracter and cannot %e t(e *ro*er su%4ect of a *etition for

A2010 Avena
certiorari. >(en a +otion to dis+iss is denied& t(e *ro*er *rocedure is to *roceed 'it( t(e trial and if t(e decision %e adverse to t(e +ovant& t(e re+ed3 is to taAe an a**eal fro+ said decision& assigning as one of t(e errors t(erefore t(e denial of t(e +otion to dis+iss. 8alo2s filed an !-R '(ic( t(e CA denied ISSUES 1. >O< CA2s dis+issal of t(e *etition for certiorari filed %3 t(e 8alo2s is valid 2. >O< t(e failure to allege t(e nature and e7tent of *laintiff2s title in a *etition for *artition is fatal to its cause of action 0. >O< t(e action for 4udicial *artition and accounting (as *rescri%ed& 'as 'aived& or 'as ot(er'ise a%andoned HELD 1. <O& CA s(ould not (ave dis+issed t(e *etition outrig(t as t(e sa+e alleges grave a%use of discretion. Instead& it s(ould (ave *roceeded to deter+ine >O< t(e trial court did co++it grave a%use of discretion as alleged %3 t(e 8alo2s. CA (aving failed in t(is regard& it %e(ooves u*on t(is Court to discuss t(e +erits of t(e *etition to *ut to rest t(e issues raised %3 t(e *etitioners. Reasoning )(e general rule regarding denial of a +otion to dis+iss as a %asis of a resort to t(e e7traordinar3 'rit of certiorari is t(at an order den3ing a +otion to dis+iss is an interlocutor3 order '(ic( neit(er ter+inates nor finall3 dis*oses of a case as it leaves so+et(ing to %e done %3 t(e court %efore t(e case is finall3 decided on t(e +erits. As suc(& t(e general rule is t(at t(e denial of a +otion to dis+iss cannot %e 1uestioned in a s*ecial civil action for certiorari '(ic( is a re+ed3 designed to correct errors of 4urisdiction and not errors of 4udg+ent. )o 4ustif3 t(e grant of t(e e7traordinar3 re+ed3 of certiorari& t(erefore& t(e denial of t(e +otion to dis+iss +ust (ave %een tainted 'it( grave a%use of discretion. 83 Fgrave a%use of discretionL is +eant& suc( ca*ricious and '(i+sical e7ercise of 4udg+ent as is e1uivalent to lacA of 4urisdiction. )(e a%use of discretion +ust %e grave as '(ere t(e *o'er is e7ercised in an ar%itrar3 or des*otic +anner %3 reason of *assion or *ersonal (ostilit3 and +ust %e so *atent and gross as to a+ount to an evasion of *ositive dut3 or to a virtual refusal to *erfor+ t(e dut3 en4oined %3 or to act all in conte+*lation of la'.

Prof. Victoria A.

>B

S*ecific instances '(ere%3 t(e rule ad+its certain e7ce*tions are *rovided as follo's@ Inder certain situations& recourse to certiorari or +anda+us is considered a**ro*riate& i.e.& 5a6 '(en t(e trial court issued t(e order 'it(out or in e7cess of 4urisdiction$ 5%6 '(ere t(ere is *atent grave a%use of discretion %3 t(e trial court$ or 5c6 a**eal 'ould not *rove to %e a s*eed3 and ade1uate re+ed3 as '(en an a**eal 'ould not *ro+*tl3 relieve a defendant fro+ t(e in4urious effects of t(e *atentl3 +istaAen order +aintaining t(e *laintiff2s %aseless action and co+*elling t(e defendant needlessl3 to go t(roug( a *rotracted trial and clogging t(e court docAets %3 anot(er futile case Contrar3 to *etitioners2 contention& allegations sufficient to su**ort a cause of action for *artition +a3 %e found in *rivate res*ondent2s co+*laint. <ot(ing is +ore settled t(an t(e rule t(at in a +otion to dis+iss for failure to state a cause of action& t(e in1uir3 is into t(e sufficienc3& not t(e veracit3& of t(e +aterial allegations. !oreover& t(e in1uir3 is confined to t(e four corners of t(e co+*laint& and no ot(er. Section 1& Rule ? of t(e 1//: Rules of Civil Procedure *rovides t(at t(e co+*laint needs onl3 to allege t(e ulti+ate facts u*on '(ic( *rivate res*ondent %ases (er clai+. )(e rules of *rocedure re1uire t(at t(e co+*laint +ust +aAe a concise state+ent of t(e ulti+ate facts or t(e essential facts constituting t(e *laintiff2s cause of action. A fact is essential if it cannot %e stricAen out 'it(out leaving t(e state+ent of t(e cause of action inade1uate. In (er Co+*laint& t(e *rivate res*ondent +ade t(e follo'ing assertions@ )(at t(e afore descri%ed *arcels of lands 'ere originall3 o'ned %3 #ugenio 8alo& Sr. and !a. Pasagui 8alo& '(o are no' %ot( deceased and after t(eir deat(& 'ere in(erited into t'o 526 e1ual s(ares %3 t(eir t'o 526 c(ildren& na+el3@ Il*iano& Sr. and !a7i+ino& %ot( surna+ed 8alo& t(e later 5sic6 %eing alread3 dead$ )(at *laintiff is t(e daug(ter of t(e late !a7i+ino 8alo and Salvacion Sa%ulao& '(o after (er fat(er2s deat(& (ad in(erited (er fat(er2s s(are of t(e in(eritance$ )(at defendant Il*iano 8alo& Sr. aside fro+ %eing t(e son of #ugenio 8alo& Sr.& is +arried to -elicidad Su*erio& and is t(e fat(er of all t(e ot(er defendants in t(is case$ )(e defendants tooA *ossession of t(e a%ove descri%ed real *ro*erties i++ediatel3 after t(e deat( of *laintiff2s grandfat(er #ugenio 8alo& Sr. 'it(out (er Ano'ledge and consent$ )(at *laintiff is desirous t(at t(e a%ove descri%ed real *ro*erties %e *artitioned %et'een (er and defendants$ )(at *laintiff (as

Civil Procedure Digest

*ro*osed to t(e defendants t(at t(e a%ove descri%ed real *ro*erties %e a+ica%l3 *artitioned %et'een t(e+ %3 +utual agree+ent in a ver3 fair and *ractical division of t(e sa+e& %ut said defendants refused and continue to do so 'it(out an3 4ustifia%le cause or reason to accede to t(e *artition of t(e said *ro*erties. )(e foregoing allegations s(o' su%stantial co+*liance 'it( t(e for+al and su%stantial re1uire+ents of a Co+*laint for Partition as re1uired under Section 1& Rule 9/ of t(e 1//: Rules of Civil Procedure. 2. <O 8riB v. 8riB@ *roof of legal acAno'ledg+ent is not a *rere1uisite %efore an action for *artition +a3 %e filed. )(ere is no a%solute necessit3 re1uiring t(at t(e action to co+*el acAno'ledg+ent s(ould (ave %een instituted and *rosecuted to a successful conclusion *rior to t(e action in '(ic( t(at sa+e *laintiff seeAs additional relief in t(e c(aracter of (eir. In a co+*laint for *artition& t(e *laintiff seeAs& first& a declaration t(at (e is a co o'ner of t(e su%4ect *ro*erties$ and second& t(e conve3ance of (is la'ful s(ares. As t(e Court of A**eals correctl3 (eld& an action for *artition is at once an action for declaration of co o'ners(i* and for segregation and conve3ance of a deter+ine *ortion of t(e *ro*erties involved. If t(e defendant asserts e7clusive title over t(e *ro*ert3& t(e action for *artition s(ould not %e dis+issed. Rat(er& t(e court s(ould resolve t(e case and if t(e *laintiff is una%le to sustain (is clai+ed status as a co o'ner& t(e court s(ould dis+iss t(e action& not %ecause t(e 'rong re+ed3 'as availed of& %ut %ecause no %asis e7ists for re1uiring t(e defendant to su%+it to *artition. If& on t(e ot(er (and& t(e court after trial s(ould find t(e e7istence of co o'ners(i* a+ong t(e *arties& t(e court +a3 and s(ould order t(e *artition of t(e *ro*erties in t(e sa+e action. 0. <O On t(e +atter of *rescri*tion cited %3 t(e *etitioners as a ground for t(e dis+issal of t(e co+*laint& it is note'ort(3 t(at t(e +otion to dis+iss filed %3 t(e 8alo2s did not i*so facto esta%lis( *rescri*tion. An allegation of *rescri*tion can effectivel3 %e used in a +otion to dis+iss onl3 '(en t(e co+*laint on its face s(o's t(at indeed t(e action (as alread3 *rescri%ed$ ot(er'ise& t(e issue of *rescri*tion is one involving evidentiar3 +atters re1uiring a full %lo'n trial on t(e +erits and cannot %e deter+ined in a +ere +otion to dis+iss.

A2010 Avena
Disposition instant Petition is D#<I#D and t(e decision of CA affir+ing t(e Order of t(e R)C is affir+ed

Prof. Victoria A.

>3

SEA-LAND SERVICE INC V CA @A.P. MOLLER0 MAERSF LINEA 00 SCRA 00 C<AR#S SA<)IA=O$ !arc( 2& 2000
NATURE Petition for revie' on certiorari decision of CA FACTS Sea land Service Inc and AP !ollerE!aersA "ine 5A!!"6 are %ot( carriers of cargo and co++on carriers. )(e3 entered into a contract entitled FCoo*eration in t(e Pacific&L '(ic( is essentiall3 a vessel s(aring agree+ent '(ere%3 t(e3 +utuall3 agreed to *urc(ase& s(are& and e7c(ange needed s*ace for cargo in t(eir res*ective containers(i*s. Inder t(e Agree+ent& t(e3 could %e& de*ending on t(e occasion& eit(er a *rinci*al carrier 5'it( a negotia%le %ill of lading or ot(er contract of carriage 'it( res*ect to cargo6 or a containers(i* o*erator 5o'ner& o*erator or c(arterer of containers(i* on '(ic( t(e cargo is carried6. During t(e lifeti+e of t(e contract& -lore7 delivered to A!!" cargo of various foodstuffs. A corres*onding 8ill of "ading 'as issued %3 A!!" to -lore7. Pursuant to t(e agree+ent& A!!" loaded t(e cargo to a vessel of Sea land. )(us& under t(is arrange+ent& A!!" 'as t(e *rinci*al carrier '(ile Sea land 'as t(e containers(i* o*erator. ;o'ever& t(e consignee 5not na+ed in t(e case6 refused *a3 for t(e cargo& alleging t(at deliver3 'as dela3ed. -lore7 t(en filed a co+*laint against A!!" for rei+%urse+ent of t(e value of t(e cargo A!!"2s ans'er@ even on t(e assu+*tion t(at -lore7 'as entitled to rei+%urse+ent& it 'as Sea land '(o s(ould %e lia%le. )(us& A!!" filed a 0 rd Part3 Co+*laint against Sea "and& averring t(at '(atever da+ages sustained %3 -lore7 'ere caused %3 Sea "and& '(ic( actuall3 received and trans*orted -lore7Ds cargo on its vessels and unloaded t(e+. Sea land filed a +otion to dis+iss t(e 0rd *art3 co+*laint on t(e ground of failure to state a cause of action and lacA of 4urisdiction& t(e a+ount of da+ages not (aving %een s*ecified t(erein. Also& Sea "and *ra3ed for eit(er dis+issal or sus*ension of t(e 0rd *art3 co+*laint on t(e ground t(at t(ere

e7ists an ar%itration agree+ent %et'een it and A!!" R)C denied +otion to dis+iss. Sea "and filed *etition for certiorari 'it( CA@ dis+issed. ;ence& t(is a**eal. >O< t(e 0rd *art3 co+*laint s(ould (ave %een dis+issed HELD C#S Ratio A!!" is %arred fro+ taAing 4udicial action against Sea "and %3 t(e clear ter+s of t(eir Agree+ent. Reasoning )o allo' A!!"Ds 0rd Part3 Clai+ against Sea "and to *roceed 'ould %e in violation of Clause 19.2 of t(e Agree+ent. As su++ariBed& t(e clause *rovides t(at '(atever dis*ute t(ere +a3 %e %et'een t(e Princi*al Carrier and t(e Containers(i* O*erator arising fro+ contracts of carriage s(all %e governed %3 t(e *rovisions of t(e %ills of lading dee+ed issued to t(e Princi*al Carrier %3 t(e Containers(i* O*erator. On t(e ot(er (and& to sustain t(e 0rd Part3 Co+*laint 'ould %e to allo' A!!" to (old Sea "and lia%le under t(e *rovisions of t(e %ill of lading issued %3 t(e Princi*al Carrier to -lore7& under '(ic( t(e latter is suing in its Co+*laint& not under t(e %ill of lading *etitioner& as containers(i* o*erator& issued to A!!"& as Princi*al Carrier& contrar3 to '(at is conte+*lated in Clause 19.2. As t(e Princi*al Carrier 'it( '(ic( -lore7 directl3 dealt 'it(& A!!" can and s(ould %e (eld accounta%le %3 -lore7 in t(e event t(at it (as a valid clai+ against t(e for+er. Pursuant to Clause 19.0 of t(e Agree+ent& A!!"& '(en faced 'it( suc( a suit Fs(all use all reasona%le endeavours to defendL itself or Fsettle suc( suits for as lo' a figure as reasona%l3 *ossi%leL. In turn& A!!" can seeA da+ages andEor inde+nit3 fro+ Sea "and as Containers(i* O*erator for '(atever final 4udg+ent +a3 %e ad4udged against it under t(e Co+*laint of -lore7. )(e crucial *oint is t(at collection of said da+ages andEor inde+nit3 fro+ Sea "and s(ould %e %3 ar%itration. In t(e lig(t of t(e Agree+ent& it is clear t(at ar%itration is t(e +ode *rovided %3 '(ic( A!!" as Princi*al Carrier can seeA da+ages andEor inde+nit3 fro+ Sea "and& as Containers(i* O*erator. Ar%itration %eing t(e +ode of settle+ent %et'een t(e *arties e7*ressl3 *rovided for %3 t(e Agree+ent& t(e 0rd Part3 Co+*laint s(ould (ave %een dis+issed. F)(is Court (as *reviousl3 (eld t(at ar%itration is one

Civil Procedure Digest

of t(e alternative +et(ods of dis*ute resolution t(at is no' rig(tfull3 vaunted as Yt(e 'ave of t(e future2 in international relations& and is recogniBed 'orld'ide. )o %rus( aside a contractual agree+ent calling for ar%itration in case of disagree+ent %et'een t(e *arties 'ould t(erefore %e a ste* %acA'ard.L 5%otto+line& t(e court considered t(e e7istence of t(e ar%itration clause as %inding %et'een t(e *arties& t(us a ground for dis+issal of t(e 0rd *art3 co+*laint6 O&iter@ FCA did not err in reading t(e Co+*laint of -lore7 and A!!"Ds Ans'er toget(er 'it( t(e 0rd Part3 Co+*laint to deter+ine '(et(er a cause of action is *ro*erl3 alleged. In -il #state =olf and Develo*+ent& Inc. vs. CA& t(is Court ruled t(at in t(e deter+ination of '(et(er or not t(e co+*laint states a cause of action& t(e anne7es attac(ed to t(e co+*laint +a3 %e considered& t(e3 %eing *arts of t(e co+*laint.L Disposition Petition is granted.

A2010 Avena
)(e *etitioner cor*oration& toget(er 'it( its *resident and vice *resident& filed an Ans'er raising as defenses lacA of cause of action and novation of t(e *rinci*al o%ligations. According to t(e+& C(ristian (ad no cause of action %ecause t(e t(ree *ro+issor3 notes 'ere not 3et due and de+anda%le. In due course and after (earing& t(e trial court rendered a decision on 5 !a3 2000 declaring t(e first t'o *ro+issor3 notes dated : August 1//9 and 14 !arc( 1//: as alread3 due and de+anda%le and t(at t(e interest on t(e loans (ad %een reduced %3 t(e *arties fro+ 15J to 9J *er annu+. )(e )C reasoned@ >(en t(e instant case 'as filed on -e%ruar3 2& 1///& none of t(e *ro+issor3 notes 'as due and de+anda%le. As of t(is date (o'ever& t(e first and t(e second *ro+issor3 notes (ave alread3 +atured. ;ence& *a3+ent is alread3 due. Inder Section 5 of Rule 10 of t(e 1//: Rules of Civil Procedure& a co+*laint '(ic( states no cause of action +a3 %e cured %3 evidence *resented 'it(out o%4ection. )(us& even if t(e *laintiff (ad no cause of action at t(e ti+e (e filed t(e instant co+*laint& as defendants2 o%ligation are not 3et due and de+anda%le t(en& (e +a3 nevert(eless recover on t(e first t'o *ro+issor3 notes in vie' of t(e introduction of evidence s(o'ing t(at t(e o%ligations covered %3 t(e t'o *ro+issor3 notes are no' due and de+anda%le. In its decision of 5 Se*te+%er 2000& t(e Court of A**eals denied *etitioner2s a**eal and affir+ed in toto t(e decision of t(e trial court. )(e *etitioner ca+e to t(is Court (ar*ing on t(e a%sence of a cause of action at t(e ti+e t(e *rivate res*ondent2s co+*laint 'as filed 'it( t(e trial court. ISSUE@ !a3 a co+*laint t(at lacAs a cause of action at t(e ti+e it 'as filed %e cured %3 t(e accrual of a cause of action during t(e *endenc3 of t(e caseQ HELD@ <o& it cannot %e cured. T-e c,"in+ e&&ec ,n)e" Sec i!n 4 i# %pp*ic%7*e onl% if a cause of action in fact e ists at the ti$e the co$plaint is filed( &ut the co$plaint is defective for failure to allege the essential facts. )(e inter*retation of Section 5& Rule 10 of t(e 1//: Rules of Civil Procedure %3 t(e )C and CA is erroneous. RATIO@

Prof. Victoria A.

>9

SWA/MAN HOTELS V. CA =.R. 191105 Davide& .r.& C...@ A*ril ?& 2005
FACTS@ So+eti+e in 1//9 and 1//:& *etitioner S'ag+an ;otels and )ravel& Inc.& t(roug( Att3. "eonor ". Infante and Rodne3 David ;egert3& its *resident and vice *resident& res*ectivel3& o%tained fro+ *rivate res*ondent <eal 8. C(ristian loans evidenced %3 t(ree *ro+issor3 notes dated : August 1//9& 14 !arc( 1//:& and 14 .ul3 1//:. #ac( of t(e *ro+issor3 notes is in t(e a+ount of ISZ50&000 *a3a%le after t(ree 3ears fro+ its date 'it( an interest of 15J *er annu+ *a3a%le ever3 t(ree +ont(s. In a letter dated 19 Dece+%er 1//?& C(ristian infor+ed t(e *etitioner cor*oration t(at (e 'as ter+inating t(e loans and de+anded fro+ t(e latter *a3+ent in t(e total a+ount of ISZ150&000 *lus un*aid interests in t(e total a+ount of ISZ10&500. On 2 -e%ruar3 1///& *rivate res*ondent C(ristian filed 'it( t(e Regional )rial Court of 8aguio Cit3& 8ranc( 5/& a co+*laint for a su+ of +one3 and da+ages against t(e *etitioner cor*oration& ;egert3& and Att3. Infante.

It is undis*uted t(at t(e t(ree *ro+issor3 notes 'ere for t(e a+ount of P50&000 eac( and unifor+l3 *rovided for 516 a ter+ of t(ree 3ears$ 526 an interest of 15 J *er annu+& *a3a%le 1uarterl3$ and 506 t(e re*a3+ent of t(e *rinci*al loans after t(ree 3ears fro+ t(eir res*ective dates. ;o'ever& %ot( t(e Court of A**eals and t(e trial court found t(at a renegotiation of t(e t(ree *ro+issor3 notes indeed (a**ened in Dece+%er 1//: %et'een t(e *rivate res*ondent and t(e *etitioner resulting in t(e reduction M not 'aiver M of t(e interest fro+ 15J to 9J *er annu+& '(ic( fro+ t(en on 'as *a3a%le +ont(l3& instead of 1uarterl3. )(e ter+ of t(e *rinci*al loans re+ained unc(anged in t(at t(e3 'ere still due t(ree 3ears fro+ t(e res*ective dates of t(e *ro+issor3 notes. )(us& at t(e ti+e t(e co+*laint 'as filed 'it( t(e trial court on 2 -e%ruar3 1///& none of t(e t(ree *ro+issor3 notes 'as due 3et$ alt(oug(& t'o of t(e *ro+issor3 notes 'it( t(e due dates of : August 1/// and 14 !arc( 2000 +atured during t(e *endenc3 of t(e case 'it( t(e trial court. 8ot( courts also found t(at t(e *etitioner (ad %een religiousl3 *a3ing t(e *rivate res*ondent ISZ:50 *er +ont( fro+ .anuar3 1//? and even during t(e *endenc3 of t(e case %efore t(e trial court and t(at t(e *rivate res*ondent (ad acce*ted all t(ese +ont(l3 *a3+ents. >it( t(ese findings of facts& it (as %eco+e glaringl3 o%vious t(at '(en t(e co+*laint for a su+ of +one3 and da+ages 'as filed 'it( t(e trial court on 2 -e%ruar3 1///& no cause of action (as as 3et e7isted %ecause t(e *etitioner (ad not co++itted an3 act in violation of t(e ter+s of t(e t(ree *ro+issor3 notes as +odified %3 t(e renegotiation in Dece+%er 1//:. >it(out a cause of action& t(e *rivate res*ondent (ad no rig(t to +aintain an action in court& and t(e trial court s(ould (ave t(erefore dis+issed (is co+*laint. Des*ite its finding t(at t(e *etitioner cor*oration did not violate t(e +odified ter+s of t(e t(ree *ro+issor3 notes and t(at t(e *a3+ent of t(e *rinci*al loans 'ere not 3et due '(en t(e co+*laint 'as filed& t(e trial court did not dis+iss t(e co+*laint& citing Section 5& Rule 10 of t(e 1//: Rules of Civil Procedure& '(ic( reads@

Civil Procedure Digest

Section 5. Amendment to conform to or authori&e presentation of evidence. G >(en issues not raised %3 t(e *leadings are tried 'it( t(e e7*ress or i+*lied consent of t(e *arties& t(e3 s(all %e treated in all res*ects as if t(e3 (ad %een raised in t(e *leadings. Suc( a+end+ent of t(e *leadings as +a3 %e necessar3 to cause t(e+ to confor+ to t(e evidence and to raise t(ese issues +a3 %e +ade u*on +otion of an3 *art3 at an3 ti+e& even after 4udg+ent$ %ut failure to a+end does not affect t(e result of t(e trial of t(ese issues. If evidence is o%4ected to at t(e trial on t(e ground t(at it is not 'it(in t(e issues +ade %3 t(e *leadings& t(e court +a3 allo' t(e *leadings to %e a+ended and s(all do so 'it( li%eralit3 if t(e *resentation of t(e +erits of t(e action and t(e ends of su%stantial 4ustice 'ill %e su%served t(ere%3. )(e court +a3 grant a continuance to ena%le t(e a+end+ent to %e +ade. According to t(e trial court& and sustained %3 t(e Court of A**eals& t(is Section allo's a co+*laint t(at does not state a cause of action to %e cured %3 evidence *resented 'it(out o%4ection during t(e trial. )(us& it ruled t(at even if t(e *rivate res*ondent (ad no cause of action '(en (e filed t(e co+*laint for a su+ of +one3 and da+ages %ecause none of t(e t(ree *ro+issor3 notes 'as due 3et& (e could nevert(eless recover on t(e first t'o *ro+issor3 notes dated : August 1//9 and 14 !arc( 1//:& '(ic( %eca+e due during t(e *endenc3 of t(e case in vie' of t(e introduction of evidence of t(eir +aturit3 during t(e trial. Suc( inter*retation of Section 5& Rule 10 of t(e 1//: Rules of Civil Procedure is erroneous. A+end+ents of *leadings are allo'ed under Rule 10 of t(e 1//: Rules of Civil Procedure in order t(at t(e actual +erits of a case +a3 %e deter+ined in t(e +ost e7*editious and ine7*ensive +anner 'it(out regard to tec(nicalities& and t(at all ot(er +atters included in t(e case +a3 %e deter+ined in a single *roceeding& t(ere%3 avoiding +ulti*licit3 of suits. Section 5 t(ereof a**lies to situations '(erein evidence not 'it(in t(e issues raised in t(e *leadings is *resented %3 t(e *arties during t(e trial& and to confor+ to suc( evidence t(e *leadings are su%se1uentl3 a+ended on +otion of a *art3. )(us& a co+*laint '(ic( fails to state a cause of action +a3 %e cured %3 evidence *resented during t(e trial.

A2010 Avena
;o'ever& t(e curing effect under Section 5 is a**lica%le onl! if a cause of action in fact e%ists at the time the complaint is filed# ut the complaint is defective for failure to allege the essential facts. A co+*laint '(ose cause of action (as not 3et accrued cannot %e cured or re+edied %3 an a+ended or su**le+ental *leading alleging t(e e7istence or accrual of a cause of action '(ile t(e case is *ending. Suc( an action is *re+aturel3 %roug(t and is& t(erefore& a groundless suit& '(ic( s(ould %e dis+issed %3 t(e court u*on *ro*er +otion seasona%l3 filed %3 t(e defendant. )(e underl3ing reason for t(is rule is t(at a *erson s(ould not %e su++oned %efore t(e *u%lic tri%unals to ans'er for co+*laints '(ic( are i++ature. DISPOSITION@ )(e *etition is (ere%3 =RA<)#D

Prof. Victoria A.

>1

a cause of action and even if it did& suc( cause of action 'as alread3 e7tinguis(ed. )(e Regional )rial Court V5R)C6W resolved to dis+iss t(e t(ird *art3 co+*laint %ecause it does not e7*ressl3 s(o' an3 act or o+ission co++itted %3 t(e t(ird *art3 defendant '(ic( violates a rig(t of t(e t(ird *art3 co+*lainant. CA granted t(e a**eal& (olding t(at t(at t(e )(ird Part3 Co+*laint (ad stated a cause of action. 5irst& *etitioner did not +aAe good its 'arrant3 in t(e Deed of Sale@ to conve3 t(e ve(icle to Res*ondent Ant(on3 S3 free fro+ all liens& encu+%rances and legal i+*edi+ents. )(e re*orted (i4acAing of t(e ve(icle 'as a legal i+*edi+ent t(at *revented its su%se1uent sale. Second& Res*ondent S3 (ad a rig(t to *rotect and a 'arrant3 to enforce& '(ile *etitioner (ad t(e corres*onding o%ligation to (onor t(at 'arrant3. =ood3ear +oved for reconsideration& '(ic( CA denied. I##,e# >O< t(e t(ird *art3 co+*laint states a cause of action against =ood3ear He*) <o. )(e )(ird Part3 Co+*laint filed %3 S3 is inade1uate& %ecause it did not allege an3 act or o+ission t(at *etitioner (ad co++itted in violation of (is rig(t to t(e su%4ect ve(icle. Reasoning; A cause of action is a for+al state+ent of t(e o*erative facts t(at give rise to a re+edial rig(t. )(e 1uestion of '(et(er t(e co+*laint states a cause of action is deter+ined %3 its aver+ents regarding t(e acts co++itted %3 t(e defendant. )(us& it F+ust contain a concise state+ent of t(e ulti+ate or essential facts constituting t(e *laintiff2s cause of action.L -ailure to +aAe a sufficient allegation of a cause of action in t(e co+*laint F'arrants its dis+issal.L E*eDen # !& % C%,#e !& Ac i!n A cause of action& '(ic( is an act or o+ission %3 '(ic( a *art3 violates t(e rig(t of anot(er& (as t(ese ele+ents@ 16 t(e legal rig(t of t(e *laintiff$ 26 t(e correlative o%ligation of t(e defendant to res*ect t(at legal rig(t$ and 06 an act or o+ission of t(e defendant t(at violates suc( rig(t.L

/OODYEAR V. SY /.R. 34:44: PAN/ANIBAN=N!' >, 9BB4

N% ,"e Petition for Revie' under Rule 45 F%c # In 1/?0 =ood3ear P(ili**ines *urc(ased fro+ Industrial and )rans*ort #1ui*+ent& Inc. an IsuBo .CR 9 >(eeler. t(e trucA 'as (i4acAed on A*ril 00& 1/?9. )(is (i4acAing 'as re*orted to t(e P(ili**ine <ational Police 5P<P6 '(ic( issued out an alert alar+ on t(e said ve(icle as a stolen one.It 'as later on recovered also in 1/?9. =ood3ear sold it to Ant(on3 S3 on Se*te+%er 12& 1//9.S3& in turn& sold it to .ose ". "ee on .anuar3 2/& 1//:. "ee filed an action for rescission of contract 'it( da+ages against S3 on Dece+%er 4& 1//: %ecause (e could not register t(e ve(icle in (is na+e due to t(e certification fro+ t(e P<P Regional )raffic !anage+ent Office in "egaB*i Cit3 t(at it 'as a stolen ve(icle and t(e alar+ covering t(e sa+e 'as not lifted. Instead& t(e P<P in "egaB*i Cit3 i+*ounded t(e ve(icle and c(arged "ee cri+inall3.S3 infor+ed =ood3ear.=ood3ear re1uested on .ul3 10& 1//: t(e P<P to lift t(e stolen ve(icle alar+ status. )(is not'it(standing& =ood3ear 'as i+*leaded as t(ird *art3 defendant in t(e t(ird *art3 co+*laint filed %3 S3 on .anuar3 /& 1//?.=ood3ear filed a +otion to dis+iss on !arc( 24& 1//? on t(e t'in grounds t(at t(e t(ird *art3 co+*laint failed to state

Civil Procedure Digest

TEST In deter+ining '(et(er an initiator3 *leading states a cause of action ad+itting t(e trut( of t(e facts alleged& can t(e court render a valid 4udg+ent in accordance 'it( t(e *ra3erQL )o %e taAen into account are onl3 t(e +aterial allegations in t(e co+*laint$ e7traneous facts and circu+stances or ot(er +atters aliunde are not considered. )(e court +a3 consider in addition to t(e co+*laint t(e a**ended anne7es or docu+ents& ot(er *leadings of t(e *laintiff& or ad+issions in t(e records. In t(e *resent case& t(e t(ird ele+ent is +issing. )(e )(ird Part3 Co+*laint filed %3 S3 is inade1uate& %ecause it did not allege an3 act or o+ission t(at *etitioner (ad co++itted in violation of (is rig(t to t(e su%4ect ve(icle. )(e Co+*laint ca*italiBed +erel3 on t(e fact t(at t(e ve(icle according to t(e records of t(e P<P& '(ic( 'as a stranger to t(e case 'as Fa stolen ve(icle.L )(e *leading did not contain Fsufficient notice of t(e cause of actionL against *etitioner. 'it(out even going into t(e veracit3 of its +aterial allegations& t(e Co+*laint is insufficient on its face. <o connection 'as laid out %et'een t(e o'ner2s sale of t(e ve(icle and its i+*ounding %3 t(e P<P. )(at t(e *olice did not lift t(e alert status did not +aAe *etitioner less of an o'ner. )(e Deed of Sale %et'een *etitioner and Res*ondent S3 'as attac(ed as Anne7 A to t(e )(ird Part3 Co+*laint filed %3 t(e latter against t(e for+er. )(e Deed stated t(at *etitioner 'as t(e a%solute o'ner of t(e su%4ect ve(icle. <o contrar3 assertion 'as +ade in t(e Co+*laint. ;ence& t(e trial court correctl3 o%served t(at t(e Co+*laint (ad failed to s(o' t(at& at t(e ti+e of its sale to Res*ondent S3& t(e ve(icle %elonged to a *erson ot(er t(an *etitioner.

A2010 Avena
#nviron+ent and <atural Resources in D#<R IV Case <o. 5441 C#<RO Case <o. /1 02. FACTS )(e case involves a *arcel of unregistered land 'it( an area of 4&?40 s1uare +eters& situated at 8aranga3 Cagsia3& !au%an HueBon& identified onl3 as "ot <o. 2059 Cad 245. Petitioner Angelita !orcal& 'it( (er sister Ildefonsa !orcal and ot(er +e+%ers of t(eir fa+il3 occu*ied& cleared and *lanted seasonal cro*s on t(e land u* to t(e ti+e it 'as declared as *u%lic land on !a3 14& 1/41. )(ereafter& t(eir fa+il3 declared t(e land for ta7ation *ur*oses and %egan *lanting coconut and ot(er fruit %earing trees. ;aving %een in *ossession of t(e said land for al+ost fort3 5406 3ears& *etitioner filed -ree Patent A**lication <o. 5IV 06 14991 in 1/:9. ;o'ever& on Se*te+%er 11& 1//0& *rivate res*ondents Antonio "aviPa 5no' deceased6 and )eresita "aviPa *rotested t(e free *atent a**lication. On August 10& 1//0& Regional Office <o. IV of t(e D#<R decreed t(e reduction of t(e area covered %3 t(e -PA. )(e S*ouses Antonio and )eresita "aviPa 'ere directed to file t(e a**ro*riate *u%lic land a**lication covering t(e ot(er (alf of t(e lot in 1uestion *articularl3 t(e nort(ern *ortion t(ereof. !orcal2s +otion for reconsideration 'as denied. Petitioner t(en filed 'it( t(e Regional )rial Court a civil action to nullif3 t(e t'o Orders of t(e D#<R Regional Office. )(e trial court& (o'ever& dis+issed *etitioner2s civil action and sustained D#<R. Petitioner a**ealed to t(e Court of A**eals %ut t(e latter eventuall3 affir+ed t(e )C. Petitioner contends t(e trial court is vested 'it( t(e *o'er to rule on t(e su%stantial rig(ts of t(e *arties in t(is case. S(e insists t(e issue of 4urisdiction (as %een settled '(en t(e trial court issued an Order den3ing t(e !otion to Dis+iss filed %3 res*ondents. Petitioner alleges t(e *rinci*le of e7(austion of ad+inistrative re+edies does not a**l3 %ecause t(ere is urgent need for 4udicial intervention and %ecause '(at is involved is a s+all *iece of agricultural land& all of 2&420 s1uare +eters. S(e adds s(e (as lost trust in t(e D#<R as a %od3& '(ic( s(e %elieves 'ould not reverse itself. ;o'ever& *rivate res*ondent )eresita "aviPa counters t(at *etitioner2s failure to *ursue and e7(aust t(e *ro*er ad+inistrative re+edies 'as fatal to (er cause. S(e +aintains t(at t(e Regional #7ecutive Director of t(e D#<R did not co++it an3 *al*a%le error or grave a%use of discretion. "iAe'ise& *rivate res*ondent contests *etitioner2s clai+ t(at

Prof. Victoria A.

>:

t(e dis*uted land is ver3 s+all$ s(e alleges t(at t(e sa+e is valued at a considera%le a+ount& over a +illion *esos. ISSUE >O< t(e *etition s(ould %e given due course HELD <O& for failure to co+*l3 'it( t(e doctrine of e7(austion of ad+inistrative re+edies Ratio. )(e doctrine of e7(austion of ad+inistrative re+edies re1uires t(at resort %e first +ade to t(e ad+inistrative aut(orities in cases falling under t(eir 4urisdiction to allo' t(e+ to carr3 out t(eir functions and disc(arge t(eir res*onsi%ilities 'it(in t(e s*ecialiBed areas of t(eir co+*etence. )(is is %ecause t(e ad+inistrative agenc3 concerned is in t(e %est *osition to correct an3 *revious error co++itted in its foru+.V/W )(ere are e7ce*tions& (o'ever& to t(e a**lica%ilit3 of t(e doctrine. A+ong t(e esta%lis(ed e7ce*tions are@ 16 '(en t(e 1uestion raised is *urel3 legal$ 26 '(en t(e ad+inistrative %od3 is in esto**el$ 06 '(en t(e act co+*lained of is *atentl3 illegal$ 46 '(en t(ere is urgent need for 4udicial intervention$ 56 '(en t(e clai+ involved is s+all$ 96 '(en irre*ara%le da+age 'ill %e suffered$ :6 '(en t(ere is no ot(er *lain& s*eed3 and ade1uate re+ed3$ ?6 '(en strong *u%lic interest is involved$ /6 '(en t(e su%4ect of t(e controvers3 is *rivate land$ and 106 in 1uo 'arranto *roceedings. In t(is case& (o'ever& none of t(e foregoing e7ce*tions +a3 %e availed of. Contrar3 to *etitioner2s assertion& 'e see no urgent need for 4udicial intervention. <ote t(at t(e case arose fro+ t(e *rotest filed %3 res*ondents against *etitioner2s free *atent a**lication for t(e su%4ect unregistered agricultural land. Clearl3& t(e +atter co+es 'it(in t(e e7clusive *ri+ar3 4urisdiction of t(e D#<R in t(e e7ercise of its 1uasi 4udicial *o'ers. )(e i+*ugned Orders of t(e D#<R Regional Office are su%4ect to revie' %3 t(e D#<R ;ead Office. Petitioner cannot circu+vent t(is *rocedure %3 si+*l3 invoAing a su**osed loss of fait( in t(e said agenc3. <eit(er are 'e *re*ared to sustain *etitioner2s clai+ t(at e7(austion of ad+inistrative re+edies need not %e co+*lied 'it( on t(e ground t(at t(e value of t(e dis*uted *arcel of land is allegedl3 insignificant.

AN/ELITA MORCAL VS. ANTONIO LAVIGA ET. AL. :25 SCRA 4B; @9BB4A EUISUMBIN/, J.
NATURE -or revie' on certiorari are t(e Decision and Resolution of t(e Court of A**eals in CA =.R. CV <o. :5402& '(ic( affir+ed t(e Decision of t(e Regional )rial Court of !au%an& HueBon& 8ranc( 94. )(e trial court Decision sustained t(e Orders issued %3 Regional Office <o. IV of t(e De*art+ent of

Civil Procedure Digest

Records s(o' t(at t(e land in 1uestion consists of 2&420 s1uare +eters& no dou%t a siBa%le *arcel of land& regardless of its agricultural nature and t(e fact t(at it is located in a re+ote area$ and its value of over a +illion *esos is certainl3 su%stantial and not insignificant. Dispositive. In su+& 'e are convinced t(at no reversi%le error 'as co++itted %3 t(e Court of A**eals '(en it sustained t(e trial court2s dis+issal of *etitioner2s co+*laint seeAing to nullif3 t(e 1uestioned D#<R Orders for *etitioner2s failure to e7(aust t(e *ro*er ad+inistrative re+edies.

A2010 Avena
under Section 412 of t(e "ocal =overn+ent Code. S(e contends t(at t(ere is no s(o'ing t(at t(e dis*ute 'as referred to t(e %aranga3 court %efore t(e case 'as filed in court. 83 t(e assailed Order of -e%ruar3 10& 2000& 8ranc( 20 of t(e Isa%ela R)C at Ro7as granted res*ondent2s !otion to Dis+iss. It stated t(at @ RA :190 re*ealing P.D. 150? ot(er'ise Ano'n as t(e Revised Tatarungang Pa+%aranga3 *rovides under Section 40/ FAll dis*utes involving real *ro*ert3 or an3 interest t(erein s(all %e %roug(t in t(e %aranga3 '(ere t(e real *ro*ert3 or t(e larger *ortion t(ereof is situated.L ;ence& t(e reliance of t(e *laintiff on Section 40? of R.A. :190 is incorrect. >(en real *ro*ert3 or an3 interest t(erein is involved& t(e dis*ute s(all %e filed %efore t(e %aranga3 '(ere t(e *ro*ert3 is located& "e+%")*e## !& -e "e#i)ence !& -e p%" ie#. 8esides& it is incorrect to sa3 t(at t(e *arties are not residents of t(e sa+e *lace& Vira& Ro7as& Isa%ela. T-e A !"ne(in-&%c !& -e p*%in i&& in -e pe"#!n !& Re(De* R. S%+%"i! i# % "e#i)en !& Vi"%, R!C%#, I#%7e*%, %n) -e #,7# i , e 5sic6 D%n e P%#c,%* 7( 'i" ,e !& #%i) Speci%* P!Ke" !& A !"ne(. ;ence& said Attorne3 in fact s(ould (ave %roug(t t(e dis*ute %efore %aranga3 Vira& Ro7as& Isa%ela& '(ere t(e *ro*ert3 is located. In t(e case of Ro3ales vs. Inter+ediate A**ellate Court& FOrdinaril3& non co+*liance 'it( t(e condition *recedent *rescri%ed %3 P.D. 150? could affect t(e sufficienc3 of t(e *laintiff2s cause of action and +aAe (is co+*laint vulnera%le to dis+issal on ground of lacA of cause of action or *re+aturit3.L Petitioner2s !otion for Reconsideration of t(e a%ove said order 'as denied. )(is order stated t(at FConse1uentl3& t(e Court is VofW t(e o*inion t(at t(e said A !"ne(-in-&%c #-%** 7e )eeDe) ! 7e -e "e%* p%" ( in in e"e# & reading fro+ t(e tenor of t(e *rovisions of t(e S*ecial Po'er of Attorne3. 8eing a real *art3 in interest& t(e Attorne3 in fact is t(erefore o%liged to %ring t(is case first %efore t(e 8aranga3 Court. Sec. 0& Rule 0 of t(e Rules of Court *rovides t(at F>(ere t(e action is allo'ed to %e *rosecuted or defended %3 a re*resentative or so+eone acting in a fiduciar3 ca*acit3& t(e %eneficiar3 s(all %e included in t(e title of t(e case and s(all %e dee+ed to %e t(e real *art3 in interest. ISSUE0S >O< t(e dis+issal of t(e case %3 t(e R)C is valid HELD

Prof. Victoria A.

>4

PASCUAL VS PASCUAL =.R. <o 15:?00 CARPIO !ORA"#S$ <ove+%er 1:& 2005
NATURE Petition for Revie' on Certiorari c(allenging t(e -e%ruar3 10& 2000 Order of t(e Regional )rial Court 5R)C6 of Isa%ela on +otion of (erein res*ondent !arilou !. Pascual& t(e co+*laint filed against (er %3 (er %rot(er (erein *etitioner Dante !. Pascual for non co+*liance 'it( t(e conciliation *rovision *re condition to filing of co+*laint in court under R.A. :190 5t(e "ocal =overn+ent Code6 FACTS - Petitioner& a *er+anent resident of t(e Inited States of A+erica& a**ointed Sagario as (is attorne3 in fact %3 a S*ecial Po'er of Attorne3 5SPA6 dated A*ril 10& 2002@ 51.6 )o file a case for t(e cancellation of )ransfer Certificate of )itle <o. ) 2:1959 issued in t(e na+e of !arilou !. Pascual as 'ell as t(e Deed of Sale of Registered "and andEor Reconve3ance at t(e a**ro*riate court$ 5 2.6 )o collect t(e +ont(l3 rentals fro+ t(e tenant$ 506. )o enter into a+ica%le settle+ent 'it( !arilou !. Pascual or an3 ot(er +ode of *a3+entEandEor dis*ute resolution$ 546. )o e7ecute and sign an3 and all *a*ers& contractsEdocu+ents '(ic( +a3 %e necessar3 relative to t(e a%ove acts. Sagario filed on Octo%er 14& 2002 5*ursuant to t(e SPA6 %efore t(e Isa%ela R)C at Ro7as a co+*laint for Annul+ent of )ransfer Certificate of )itle <o. ) 2:195: of Isa%ela and Deed of A%solute Sale of Registered "and andEor Reconve3ance 'it( Da+ages Defendant (erein res*ondent !arilou !. Pascual filed a !otion to Dis+iss on t'o grounds one of '(ic( 'as non co+*liance 'it( t(e re1uire+ent

<O Ratio. Petitioner argues t(at since (e& not (is attorne3 in fact Sagario& is t(e real *art3 in interest& and since (e actuall3 resides a%road& t(e lupon 'ould (ave no 4urisdiction to *ass u*on t(e dis*ute involving real *ro*ert3& (e citing Ag a!ani v. @elen )(e *ertinent *rovisions of t(e "ocal =overn+ent Code read@ S#C. 40?. Su ject 2atter for Amica le Settlement; E%ception +hereto. M )(e lu*on of eac( %aranga3 s(all (ave aut(orit3 to %ring toget(er t(e *arties %c ,%**( "e#i)in+ in t(e sa+e cit3 or +unici*alit3 for a+ica%le settle+ent of all dis*utes e7ce*t@ 77777 In t(e 1/?2 case of +avora v. 7eloso t(e Court (eld t(at '(ere t(e *arties are not %c ,%* "e#i)en # in t(e sa+e cit3 or +unici*alit3 or ad4oining %aranga3s& t(ere is no re1uire+ent for t(e+ to su%+it t(eir dis*ute to t(e lupon as *rovided for in Section 9 vis a vis Sections 2 and 0 of P.D. 150? 5Natarungang Pam aranga! "a'6. V8W3 e7*ress statutor3 inclusion and e7clusion& t(e "u*on s(all (ave no 4urisdiction over dis*utes '(ere t(e *arties are not actual residents of t(e sa+e cit3 or +unici*alit3& e7ce*t '(ere t(e %aranga3s in '(ic( t(e3 actuall3 reside ad4oin eac( ot(er. Reasoning. )o construe t(e e7*ress statutor3 re1uire+ent of actual residenc3 as a**lica%le to t(e attorne3 in fact of t(e *art3 *laintiff& as contended %3 res*ondent& 'ould a%rogate t(e +eaning of a Freal *art3 in interestL as defined in Section 2 of Rule 0 of t(e 1//: Rules of Court vis a vis Section 0 of t(e sa+e Rule '(ic( 'as earlier 1uoted %ut +isread and +isunderstood %3 res*ondent. In fine& since t(e *laintiff (erein *etitioner& -e "e%* p%" ( in in e"e# & is not an actual resident of t(e %aranga3 '(ere t(e defendant (erein res*ondent resides& t(e local lupon (as no 4urisdiction over t(eir dis*ute& (ence& *rior referral to it for conciliation is not a *re condition to its filing in court. Dispositive. )(e *etition is granted.

PHILVILLE VS JAVIER BB SCRA BB SANDOVAL-/UTIERREZ= Dec. 31, 9BB2

NATURE Instant *etition for revie' on certiorari

Civil Procedure Digest

FACTS )(is case traces its antecedents to a verified co+*laint filed %3 !ercedes .avier& (erein res*ondent 'it( t(e R)C for da+ages and in4unction. I+*leaded as defendant 'as P;I"VI""# Develo*+ent and ;ousing Cor*oration 5P;I"VI""#6. )(e co+*laint alleges t(at s*ouses Crisanto 5no' deceased6 and .avier (ave %een tenant cultivators of a 5.5 (ectare *arcel of rice land o'ned %3 -eli+on #+*erado& a (older of a free *atent. So+eti+e in 1/::& P;I"VI""# *ro*osed to %u3 t(e land for conversion into a (ousing su%division. S*ouses .avier& P;I"VI""# and #+*erado t(en entered into a Tasulatan ng Pagsasalin at Tusang "oo% na PagsusuAo. A+ong t(e ter+s agreed u*on %3 t(e *arties 'as t(at t(e .aviers 'ould %e given a 2&000 s1uare +eter lot as a distur%ance co+*ensation. ;o'ever& instead of giving t(e+ a single lot +easuring 2&000 s1uare +eters& '(at t(e3 received 'ere 2 se*arate lots of 1&000 s1uare +eters eac( located far a*art. )(is *ro+*ted !ercedes to sue P;I"VI""# for da+ages. In its ans'er& P;I"VI""# s*ecificall3 denied t(e allegations in t(e co+*laint and raised t(e follo'ing affir+ative and s*ecial defenses@ 516 t(e co+*laint fails to state a cause of action$ 526 it does not allege t(at t(e *arties resorted to conciliation *roceedings %efore t(e %aranga3$ and 506 *laintiff is esto**ed fro+ filing t(e co+*laint. !ercedes filed a +otion for leave of court to a+end (er co+*laint. In (er attac(ed a+ended co+*laint& s(e alleged t(at t(e Tasulatan did not e7*ress t(e true agree+ent of t(e *arties and t(at t(e sale is void as it 'as e7ecuted 'it(in t(e 5 3ear *ro(i%itive *eriod fro+ t(e issuance of t(e free *atent. )(e trial court denied t(e +otion& (olding t(at t(e *ro*osed a+end+ent is inconsistent 'it( t(e cause of action in t(e original co+*laint$ and t(at t(e *ro*osed a+end+ent is t(e su%4ect of anot(er civil case %et'een t(e sa+e *arties *ending %efore anot(er %ranc( of t(e trial court. P;I"VI""# +oved to dis+iss t(e original co+*laint alleging t(at t(e *laintiff (ad filed a *rotest 'it( t(e "and !anage+ent 8ureau seeAing t(e revocation of t(e free *atent issued to #+*erado and t(e reversion of t(e land to t(e *u%lic do+ain. t(e trial court granted P;I"VI""#2s +otion to dis+iss !ercedes filed a +otion for reconsideration of t(e said Order %ut it 'as denied. )(is *ro+*ted (er to inter*ose an a**eal to t(e CA '(ic( reversed t(e order and re+anded t(e cast to t(e trial court.

A2010 Avena
P;I"VI""# filed a +otion for reconsideration %ut it 'as denied %3 t(e A**ellate Court. ;ence& t(e instant *etition for revie' on certiorari. ISSUE >O< t(e CA erred in reversing t(e c(allenged Orders of t(e trial court dis+issing t(e co+*laint of !ercedes. HELD <O. Ratio Section 1& Rule 19 of t(e Revised Rules of Court t(en a**lica%le *rovides@ FS#C. 1. =rounds. M >it(in t(e ti+e for *leading a +otion to dis+iss t(e action +a3 %e +ade on an3 of t(e follo'ing grounds@ 5a6 )(at t(e court (as no 4urisdiction over t(e *erson of t(e defendant or over t(e su%4ect of t(e action or suit$ 5%6 )(at t(e court (as no 4urisdiction over t(e nature of t(e action or suit$ 5c6 )(at venue is i+*ro*erl3 laid$ 5d6 )(at t(e *laintiff (as no legal ca*acit3 to sue$ 5e6 )(at t(ere is anot(er action *ending %et'een t(e sa+e *arties for t(e sa+e cause$ 5f6 )(at t(e cause of action is %arred %3 a *rior 4udg+ent or %3 statute of li+itations$ 5g6 )(at t(e co+*laint states no cause of action$ 5(6 )(at t(e clai+ or de+and set fort( in t(e *laintiff2s *leading (as %een *aid& 'aived& a%andoned& or ot(er'ise e7tinguis(ed$ 5i6 )(at t(e clai+ on '(ic( t(e action or suit is founded is unenforcea%le under t(e *rovisions of t(e statute of frauds$ 546 )(e suit is %et'een +e+%ers of t(e sa+e fa+il3 and no earnest efforts to'ards a co+*ro+ise (ave %een +ade.L In ..!. )uason N Co.& Inc. v. Rafor& -i# C!," in e"p"e e) RKi -in -e iDe &!" p*e%)in+S ! De%n Ki -in -e iDe ! %n#Ke". Reasoning Inder Section 1& Rule 11& t(e ti+e to ans'er is 15 da3s after service of su++ons u*on t(e defendant. In t(e instant case& 'e note t(at P;I"VI""#2s +otion to dis+iss t(e co+*laint 'as filed after it (ad filed its ans'er. )(e onl3 e7ce*tions to t(e rule& as correctl3 *ointed out %3 t(e CA& are@ 516 '(ere t(e ground raised is lacA of 4urisdiction of t(e court over t(e su%4ect +atter$ 526 '(ere t(e co+*laint does not state a cause of action$ 506 *rescri*tion$ and 546 '(ere t(e evidence t(at 'ould constitute a ground for t(e dis+issal of t(e co+*laint 'as discovered onl3 during t(e trial. <one of t(e foregoing grounds is *resent in P;I"VI""#2s +otion to dis+iss. Dispostition >;#R#-OR#& t(e *etition is D#<I#D.

Prof. Victoria A.
DIU V CA @BUSHNELL AND PA/BAA =.R. <O. 115210 R#=A"ADO$ D#C.1/& 1//5

>5

NATURE A**eal %3 certiorari fro+ 4udg+ent of CA '(ic( set aside t(e R)C2s FACTS Private res*ondent Pag%a *urc(ased on credit various +erc(andise fro+ *etitioners2 5>ilson and Dorcita Diu6 store in <aval& 8iliran all valued at P:& ?92.55. Res*ondents failed to *a3 des*ite re*eated de+ands. Petitioners t(en %roug(t t(e +atter to t(e 8aranga3 C(air+an of <aval and so t(e case 'as set for (earing %ut *rivate res*ondents failed to a**ear. >(en t(e case 'as again set for (earing& t(e *arties a**eared %ut t(e3 failed to reac( an a+ica%le settle+ent. Accordingl3& t(e %aranga3 c(air+an issued a Certification to -ile Action. Petitioners t(en filed t(eir co+*laint for a su+ of +one3 %efore t(e !)C of <aval to '(ic( *rivate res*ondents inter*osed t(e counterclai+ t(at *etitioners also (ad e7isting o%ligations to t(e+@ one for alleged +aintenance and re*air of *etitioners2 %oat and anot(er for t(e cost of 2 tires t(at *etitioners allegedl3 +isa**ro*riated. Private res*ondents liAe'ise alleged t(at des*ite t(e confrontations %efore t(e %aranga3 c(air+an& *etitioners refused to *a3 t(eir 4ust and valid o%ligations to *rivate res*ondent and (er (us%and )(e !)C dis+issed t(e co+*laint for non co+*liance 'it( t(e *rovisions of P.D. 150? on conciliation. Petitioners a**ealed to t(e R)C& '(ic( did not *ass u*on t(e issue of t(e alleged non co+*liance 'it( P.D. 150? %ut instead& decided t(e a**eal on t(e +erits and rendered 4udg+ent in favor of *etitioners. Private res*ondents t(en 'ent to t(e CA and said a**ellate court set aside t(e 4udg+ent of t(e R)C on t(e ground t(at t(ere (ad %een no co+*liance 'it( P.D. 150?. )(e CA said t(us@ FIt is& t(erefore& clear t(at if efforts of t(e %aranga3 ca*tain to settle t(e dis*ute fails& t(e PangAat ng )aga*agAasundo s(all %e constituted 'it( t(e end in vie' of e7*loring all *ossi%ilities of a+ica%le settle+ent. If no conciliation or settle+ent (as %een reac(ed *ursuant to t(e

Civil Procedure Digest

aforesaid rules& t(e +atter +a3 t(en %e %roug(t to t(e regular courts.L FIn t(e case at %ar& it (as %een esta%lis(ed t(at t(ere 'as no valid conciliation *roceeding %et'een t(e *arties. )(e efforts of t(e %aranga3 ca*tain of <aval& 8iliran to +ediate t(e dis*ute %et'een t(e *arties (aving failed& t(e PangAat ng )aga*a+a3a*a s(ould (ave %een constituted for *ur*oses of settling t(e +atter. ;o'ever& t(e PangAat 'as not constituted& and instead& a Certification to -ile Action 'as issued %3 t(e %aranga3 ca*tain in favor of res*ondent s*ouses Diu. In 8e4er vs. Court of A**eals& 19/ SCRA 5 99& it 'as (eld t(at Ffailure to avail of conciliation *rocess under P.D. 150?& 7 7 7 renders t(e co+*laint vulnera%le to a ti+el3 +otion to dis+iss.L ISSUE >O< t(e confrontations %efore t(e 8aranga3 C(air+an of <aval satisfied t(e re1uire+ent in P.D. 150?& t(ere 'as su%stantial co+*liance 'it( t(e *re condition 5for filing t(e clai+6 HELD C#S. Ratio Inder Sec.412 of t(e "ocal =overn+ent Code& confrontation %efore t(e "u*on C(air+an OR t(e PangAat is sufficient co+*liance 'it( t(e *re condition for filing t(e case in court. Reasoning P.D. 150? (as %een re*ealed %3 codification in t(e "ocal =overn+ent Code& '(ic( tooA effect on .an.1& 1//2. Sec.410 58614 of t(e "ocal =ovt. Code '(ic( +andates t(at t(e %aranga3 c(air+an s(all constitute a *angAat if (e fails in (is +ediation efforts& s(ould %e construed toget(er 'it( Sec.41215&
14

A2010 Avena
as 'ell as t(e circu+stances o%taining and *eculiar to t(e case. On t(is score& t(e %aranga3 c(air+an or *unong %aranga3s is (i+self t(e c(air+an of t(e lu*on under t(e "ocal =ovt. Code. >(ile no *angAat 'as constituted& it is not denied t(at t(e *arties +et at t(e office of t(e %aranga3 c(air+an for *ossi%le settle+ent. Alt(oug( no *angAat 'as for+ed& t(ere 'as su%stantial co+*liance 'it( t(e la'. -ro+ t(e facts& it is undenia%le t(at t(ere 'as su%stantial co+*liance 'it( P.D.150? '(ic( does not re1uire strict tec(nical co+*liance 'it( its *rocedural re1uire+ents. Inder t(e factual antecedents& it cannot %e said t(at t(e failure of t(e *arties to a**ear %efore t(e *angAat caused an3 *re4udice to t(e case for *rivate res*ondents considering t(at t(e3 alread3 refused conciliation %efore t(e %aranga3 c(air+an and& t(eir s(a+ insistence for a +eeting %efore t(e *angAat is +erel3 a *lo3 for furt(er dela3. )ec(nicalities s(ould not %e +ade to desert t(eir true role in our 4ustice s3ste+& and s(ould not %e used as o%structions t(erein. )(e Court noted t(at alt(oug( t(e %asic co+*laint 'as filed %3 *etitioners on .ul3 10& 1//1& %efore t(e effectivit3 of t(e "ocal =ovt. Code& or '(en P.D. 150? 'as still in force& t(e *rocedural *rovisions of t(e "ocal =ovt. Code are also a**lica%le to t(is case. Statutes regulating procedure in courts are applica le to actions pending and undetermined at the time of their passage. Procedural la$s are retrospective in that sense. . )(e Court furt(er reasoned t(at t(e failure of Pag%a to s*ecificall3 allege in t(eir Ans'er t(at t(ere 'as no co+*liance 'it( t(e %aranga3 conciliation *rocedure constituted a 'aiver of t(at defense. Since *rivate res*ondents failed to dul3 raise t(at issue& t(eir defense founded t(ereon is dee+ed 'aived& es*eciall3 since t(e3 did not *ursue t(e issue %efore t(e case 'as set for (earing. Also& t(e conciliation *rocedure under P.D. 150? is not a 4urisdictional re1uire+ent and nonco+*liance t(ere'it( cannot affect t(e 4urisdiction '(ic( t(e lo'er courts (ad alread3 ac1uired over t(e su%4ect +atter and *rivate res*ondents as defendants t(erein. Disposition *etition =RA<)#D. )(e CA 4udg+ent is S#) ASID#. R)C 4udg+ent is R#I<S)A)#D.

Prof. Victoria A.
:2: SCRA 5;5 CALLEJO, N!'eD7e" 33, 9BB4
N% ,"e Petition for revie' on certiorari F%c #

>2

#stela 8er%a 'as t(e o'ner of a *arcel of land located at !. Ro7as St& Sta. Ana& !anila. A (ouse 'as constructed on t(e lot& '(ic( s(e leased to .ose*(ine Pa%lo and t(e ;eirs of Carlos Palanca so+eti+e in 1/:9& covered %3 a lease contract. I*on its e7*iration& t(e lessees continued leasing t(e (ouse on a +ont( to +ont( %asis. )(e lessees failed to *a3 t(e rentals due& and %3 !a3 1///& t(eir arrears a+ounted to P?1&?1?. 8er%a filed a co+*laint for eviction and collection of un*aid rentals onl3 against Pa%lo in t(e Office of t(e Punong @aranga!. On .une 5& 1///& 8er%a and Pa%lo e7ecuted an Agree+ent a**roved %3 t(e pang'at& '(erein@ 16 Pa%lo undertooA to *a3 8er%a P0000 ever3 tent( of t(e +ont( until full3 *aid$ 26 Pa%lo 'ill voluntaril3 leave t(e leased *re+ises u*on failure to *a3$ and 06 Pa%lo 'ill *a3 P0450 as +ont(l3 rental& on to* of t(e P0000. 83 !a3 2000& t(e lessees still (ad a %alance of P:1&:19. As of !a3 2001& t(e total arrearages of t(e lessees a+ounted to P105&115.90. On !a3 2& 2001& 8er%a t(roug( counsel 'rote to lessees& de+anding *a3+ent of t(e arrearages and to vacate t(e (ouse 'it(in 00 da3s fro+ notice& ot(er'ise s(e 'ill sue t(e+. )(e lessees ignored t(e de+and. On .une 21& 2001& 8er%a filed a co+*laint against Pa%lo and t(e ;eirs of Carlos Palanca in t(e !)C of !anila for unla'ful detainer. 8er%a& (o'ever& failed to a**end to (er co+*laint a certification fro+ t(e -upon ng +agapama!apa t(at no conciliation or settle+ent (as %een reac(ed. In t(eir ans'er& defendants ad+itted t(e3 sto**ed *a3ing rentals %ecause of financial distress. 83 'a3 of s*ecial and affir+ative defenses& t(e3 averred t(at t(e *laintiff (ad no cause of action against t(e+ as s(e

S#C. 410. PROC#DIR# -OR A!ICA8"# S#))"#!#<). 5%6 7 7 7. If (e 5lu*on c(air+an6 fails in (is +ediation effort 'it(in fifteen 5156 da3s fro+ t(e first +eeting of t(e *arties %efore (i+& (e s(all fort('it( set a date for t(e constitution of t(e *angAat in accordance 'it( t(e *rovisions of t(is c(a*ter. 15 S#C. 412. CO<CI"IA)IO<. 5a6 Precondition to filing of Co+*laint in Court. <o co+*laint 7 7 7 s(all %e filed or instituted in court 7 7 7 unless t(ere (as %een a confrontation of t(e *arties %efore t(e lu*on c(air+an OR t(e *angAat& and t(at no conciliation or settle+ent (as %een reac(ed as certified %3 t(e

BERBA V. PABLO
lu*on secretar3 or *angAat secretar3 as attested to %3 t(e lu*on or *angAat c(air+an 7 7 7.

Civil Procedure Digest

failed to secure a Certificate to -ile Action fro+ t(e -upon. During t(e *re trial conference& t(e *arties +anifested t(at des*ite earnest efforts& no a+ica%le settle+ent 'as reac(ed. )(e3 defined t(e +ain issue as >O< t(e *laintiff (ad a valid cause of action for unla'ful detainer against defendants. In (er *osition *a*er& 8er%a a**ended an Agree+ent dated .une 5& 1/// %et'een (er and Pa%lo& '(ic( a**eared to (ave %een a**roved %3 t(e Punong @aranga! and t(e +e+%ers of t(e -upon. S(e also a**ended a State+ent of Account. In t(eir *osition *a*er& defendants insisted t(at t(e dis*ute did not go t(roug( t(e -upon ng +agapama!apa *rior to t(e filing of t(e co+*laint$ (ence 8er%a2s co+*laint 'as *re+ature. In (er re*l3& t(e *laintiff alleged t(at t(ere 'as no +ore need for (er to secure a Certificate to -ile Action %ecause s(e 'as a resident of !aliga3a St.& !alate& !anila& '(ile t(e defendants 'ere residing in 8aranga3 ?:0& Sone 9 in Sta. Ana !anila. !)C ruled in favor of 8er%a. Defendants a**ealed to t(e R)C. On +otion of 8er%a& R)C issued an order for t(e e7ecution of t(e decision *ending a**eal. )(e defendants filed a +otion for t(e recall of t(e Order& %ut %efore t(e court could resolve t(e +otion& t(e S(eriff turned over t(e *(3sical *ossession of t(e *ro*ert3 to 8er%a on !a3 20& 2002. In t(eir A**eal !e+orandu+& defendants insisted t(at 8er%a2s action in t(e !)C 'as *re+ature %ecause of t(e a%sence of Certificate to -ile Action issued %3 t(e -upon. 8er%a averred t(ere 'as no need of a *rior referral to t(e -upon& and cited Sec 40?5f6 of t(e "ocal =overn+ent Code& *ointing out t(at s(e resided in a %aranga3 in !alate& ? Ailo+eters a'a3 fro+ t(e %aranga3 in Sta. Ana '(ere t(e defendants lived. R)C granted t(e a**eal& reversing t(e decision of t(e !)C and ordering t(e dis+issal of t(e co+*laint for unla'ful detainer 'it(out *re4udice. )(e R)C ruled t(at under Sec 40? of t(e "ocal =overn+ent

A2010 Avena
Code& *arties '(o reside in t(e sa+e cit3 or +unici*alit3 alt(oug( in different %aranga3s are +andated to go t(roug( conciliation *roceedings in t(e -upon. R)C denied 8er%a2s !-R. S(e t(en filed *etition for revie' 'it( CA& clai+ing t(at Sec 40? of "ocal =overn+ent Code s(ould %e construed li%erall3 toget(er 'it( Sec 412. S(e furt(er averred t(at s(e (ad co+*lied su%stantiall3 'it( t(e re1uisites of t(e la'& and recalls t(at conciliation *roceedings %efore t(e -upon resulted in t(e e7ecution of an Agree+ent on .une 5& 1///. I*on failure to co+*l3 'it( t(e agree+ent& all c(ances of a+ica%le settle+ent 'ere effectivel3 foreclosed. CA dis+issed t(e *etition and affir+ed t(e R)C decision. I##,e >O< t(e CA erred in dis+issing t(e *etition and declaring t(at t(ere 'as no su%stantial co+*liance 'it( t(e +andate of t(e la' 'it( res*ect to *rior referral to t(e @aranga! Court. He*) NO 8er%a and Pa%lo e7ecuted t(e Agree+ent '(ic( 'as a**roved %3 t(e -upon. )(is agree+ent (ad t(e force and effect of a final 4udg+ent. >(en Pa%lo failed to co+*l3 'it( (er o%ligation of re*a3ing t(e %acA rentals& 8er%a (ad t(e rig(t to enforce t(e Agree+ent against (er and +ove for (er eviction fro+ t(e *re+ises. ;o'ever& instead of filing a +otion %efore t(e -upon for t(e enforce+ent of t(e agree+ent& or an action in t(e !)C for t(e enforce+ent of t(e settle+ent& t(e *etitioner filed an action against Pa%lo for unla'ful detainer and t(e collection of un*aid rentals. )(e action of 8er%a against Pa%lo 'as %arred %3 t(e Agree+ent of .une 5& 1///. 8er%a2s co+*laint against t(e ;eirs of Carlos Palanca 'as *re+ature. )(e3 'ere not i+*leaded %3 8er%a as *arties res*ondents %efore t(e -upon. !oreover& t(e3 'ere not *riv3 to t(e agree+ent& and as suc(& 'ere not %ound %3 it.

Prof. Victoria A.

>;

Inder Sec 40? of t(e "ocal =overn+ent Code& *arties actuall3 residing in t(e sa+e cit3 or +unici*alit3 are %ound to su%+it t(eir dis*utes to t(e -upon for conciliationEa+ica%le settle+ent& unless ot(er'ise *rovided t(erein. If t(e co+*lainantE*laintiff fails to co+*l3 'it( t(e re1uire+ents of t(e "ocal =overn+ent Code& suc( co+*laint filed 'it( t(e court +a3 %e dis+issed for failure to e7(aust all ad+inistrative re+edies. Disposition Petition denied.

SUSTI/UER V TAMAYO =.R. <o. 2/041 -#R<A<$ AI= 21 1/?/

NATURE A**eal to order %3 C-I FACTS Sustiguer and A*osaga %ot( clai+ed t(at t(e3 'ere 1ualified and entitled to *urc(ase a su%division lot in 8acolod for t(e reason t(at t(e3 *ossess t(e *referential rig(t to %u3 it fro+ t(e =ovt of 8acolod& %eing t(e actual occu*ants of t(e lot. t(e3 agreed t(at t(e a'ard of t(e lot %e given to A*osaga and t(at a do'n *a3+ent of 20J of t(e total cost of t(e lot s(all %e +ade 5or else t(e lot 'ill %e a'arded to ot(er a**licants6 A*osaga failed to *a3 t(e *rice. )(e sa+e lot 'as sold to .ose )a+a3o. Sustiguer and A*osaga filed for annul+ent of t(e sale on install+ent and a'ard of said lot against t(e =ovt of 8acolod and )a+a3o& clai+ing t(at )a+a3o 'as not 1ualified to a**l3 for t(e a'ard nor to *urc(ase t(e lot under Ordinance <o. 14/. It 'as also clai+ed t(at )a+a3o +aliciousl3 filed for unla'ful detainer against A*osaga and Sustiguer 5 3ears and 5 +ont(s after t(e co+*laint 'as filed& A*osaga filed a ,!otion to >it(dra' in Case 952? 5annul+ent of sale6L and FConfess .udg+ent in Civil Case <o. :512 5unla'ful detainer case6, declaring s(e is no longer interested in its *rosecution. )(e court allo'ed (er 'it(dra'al as *laintiff. Sustiguer filed a +anifestation t(at t(e 'it(dra'al of A*osaga as *art3 *laintiff in Civil Case 952? and

Civil Procedure Digest

as *art3 defendant in Civil Case :512 does not c(ange t(e status and c(aracter of t(e said cases considering t(at s(e 'as +erel3 acco++odated %3 (er codefendant in occu*3ing t(e lot in 1uestion. - )a+a3o +oved for a *reli+inar3 (earing on (is affir+ative and s*ecial defenses and to dis+iss %ot( t(e co+*laint and co+*laint in intervention 5of Villa+arBo6 invoAing Sec 5 of Rule 19. ;e *ra3ed t(at (e %e allo'ed to su%+it a 'ritten +e+orandu+ in su**ort of (is affir+ative and s*ecial defenses. )a+a3o filed (is +e+orandu+ on t(e issue >O< Sustiguer (as an3 cause of action against t(e defendants. Sustiguer filed an o**osition to t(e +otion to dis+iss and +oved for 4udg+ent on t(e *leadings *ursuant to Sec 1 of Rule 1/. lo'er court dis+issed t(e co+*laint of Sustiguer for lacA of cause of action Sustiguer filed !-R and ne' trial clai+ing t(at t(e dis+issal of t(e co+*laint is contrar3 to la' as t(ere 'as no *reli+inar3 (earing and t(at s(e still (as a valid cause of action even after t(e 'it(dra'al of A*osaga fro+ t(e case as s(e 'as suing in (er o'n rig(t as an a'ardee entitled to t(e a'ard in 1uestion. C-I denied. ISSUE >O< dis+issal of co+*laint 'as *ro*er HELD C#S Rule 0.2 F#ver3 action +ust %e *rosecuted and defended in t(e na+e of t(e real *art3 in interest. All *ersons (aving an interest in t(e su%4ect of t(e action and in o%taining t(e relief de+anded s(all %e 4oined as *laintiffs. . . ., )(e real *art3 in interest is t(e *art3 '(o stands to %e %enefited or in4ured %3 t(e 4udg+ent or t(e *art3 entitled to t(e avails of t(e suit. ,Interest, 'it(in t(e +eaning of t(e rule +eans +aterial interest& an interest in issue and to %e affected %3 t(e decree& as distinguis(ed fro+ +ere interest in t(e 1uestion involved& or a +ere incidental interest. As a general rule& one (aving no rig(t or interest to *rotect cannot invoAe t(e 4urisdiction of t(e court as a *art3 *laintiff in an action. Sustiguer is not entitled to t(e relief *ra3ed for& s(e not %eing t(e real *art3 in interest. )(e dis+issal of t(e co+*laint for lacA of cause of action is *ro*er under t(e circu+stances. It is 'ell settled t(at '(ere t(e *laintiff is not t(e real *art3 in interest& t(e

A2010 Avena
ground for t(e +otion to dis+iss is lacA of cause of action. Sustiguer2s interest cannot %e categoriBed as +aterial interest 'it(in t(e +eaning of Rule 0.2 considering t(at it is contingent u*on t(e final e7ecution of t(e contract of sale on install+ent in favor of A*osaga. Alt(oug( t(e ground of lacA of cause of action 'as *leaded %3 )a+a3o as one of (is s*ecial and affir+ative defenses in (is ans'er& t(e said ground for dis+issal of t(e co+*laint +a3 %e (eard *reli+inaril3 as if a +otion to dis+iss (ad %een filed *ursuant to Section 5 of Rule 19 of t(e Rules of Court. )a+a3o tooA t(is *rocedural ste* %3 filing a +otion for *reli+inar3 (earing and t(ereafter to dis+iss t(e co+*laint and t(e co+*laint in intervention. Records s(o' t(at instead of a *reli+inar3 (earing& t(e *arties filed t(eir res*ective +e+oranda on t(e issue >O< Sustiguer (as a cause of action. >(en t(e ground for dis+issal is t(at t(e co+*laint states no cause of action& t(e rule *rovides t(at its sufficienc3 can onl3 %e deter+ined %3 considering t(e facts alleged in t(e co+*laint and no ot(er& t(e test %eing '(et(er t(e court can render a valid 4udg+ent fro+ t(e facts set fort(.)(e rule is t(at '(en t(e +otion to dis+iss is %ased on t(e ground t(at t(e co+*laint states no cause of action& no evidence +a3 %e allo'ed and t(e issue s(ould onl3 %e deter+ined in t(e lig(t of t(e allegations of t(e co+*laint. )(us it 'as erroneous for Sustiguer to clai+ t(at t(e lo'er court s(ould (ave conducted a trial on t(e +erits instead of dis+issing t(e co+*laint u*on a +ere +otion. Disposition dis+issal of co+*laint for lacA of cause of action as 'ell as t(e order den3ing !-R affir+ed

Prof. Victoria A.

>>

HEIRS OF LICAROS V SANDI/ANBAYAN 440 SCRA 4?0 PA<=A<I8A<$ Octo%er 1?& 2004
FACTS =regorio S. "icaros& *etitioners2 *redecessor in interest& served as governor of t(e Central 8anA of t(e P(ili**ines fro+ 1/:0 to 1/?0 during t(e *residenc3 of !arcos. ;e died on August 0& 1/?0. .ul3 1:& 1/?: M PC==& assisted %3 Office of Sol=en&

filed a co+*laint for reversion& reconve3ance& restitution& accounting and da+ages against !arcos and alleged cron3 "ucio )an. )(e co+*laint 'as to recover ill gotten 'ealt( '(ic( 'as allegedl3 ac1uired and accu+ulated in flagrant %reac( of trust and of t(eir fiduciar3 o%ligations as *u%lic officers. Aside fro+ t(e +ain defendants 5!arcos& 'ife I+elda and )an6& 20 ot(er *ersons '(o (ad *ur*ortedl3 acted as t(eir du++ies& no+inees or agents. It alleged& a+ong ot(ers& t(at )an 5'it( t(e connivance of so+e govern+ent officials& including C8 =overnor "icaros6 (ad fraudulentl3 ac1uired t(e assets of t(e =eneral 8anA and )rust Co+*an3& no' Ano'n as t(e Allied 8anA. Des*ite t(e allegation& "icaros 'as not i+*leaded in t(is Co+*laint or in t(e su%se1uent #7*anded Co+*laint. Se*te+%er 10& 1//1 4 3ears after t(e original action 'as filed& RP filed a !otion for "eave to A+end Co+*laint and for Ad+ission of a Second A+ended Co+*laint& '(ic( i+*leaded t(e #stateE;eirs of "icaros for t(e first ti+e. )(e A+ended Co+*laint& reiterating earlier allegations in t(e #7*anded Co+*laint& detailed "icaros2 *artici*ation in t(e alleged un(ol3 cons*irac3. "icaros (ad allegedl3 facilitated t(e fraudulent ac1uisition of t(e assets of =8)C 'ort( over P9?? +illion at t(at ti+e& to favor t(e !arcoses and t(e "ucio )an =rou* '(o ac1uired said =8)C assets for onl3 P500&000.00. ;ence& (is estate re*resented %3 (is (eirs 'as i+*leaded as a *art3 defendant for t(e *ur*ose of o%taining co+*lete relief. In 1/:9& =8)C got into financial difficulties and a loan 'as e7tended to it %3 C8 a+ounting to P010 +illion. In e7tending t(is loan& t(e C8 tooA control of =8)C '(en t(e latter e7ecuted an irrevoca%le *ro73 of 2E0 of t(e %anA2s outstanding s(ares in favor of t(e C8. : of t(e 11 +e+%er 8oard of Directors 'ere C8 no+inees. !arc( 25& 1/:: M =8)C 'as declared insolvent and *laced under receivers(i*. A *u%lic %idding 'as (eld for t(e s(ares of =8)C. A+ong t(e conditions 'as t(e attac(+ent %3 t(e %idder of a letter of credit. )(is 'as not fulfilled %3 )an& et. al. '(o onl3 *aid P500&000 and attac(ed a letter fro+ P<8 *resident Do+ingo. !arcos& Do+ingo and "icaros allegedl3 cons*ired 'it( eac( ot(er and gave )an& et. al. favors.

Civil Procedure Digest

Se*te+%er 0& 2001 )(e (eirs of "icaros filed a !otion to Dis+iss t(e Co+*laint& raising as grounds 516 lacA of cause of action and 526 *rescri*tion. )(e Sandigan%a3an (eld t(at t(e aver+ents in t(e Second A+ended Co+*laint (ad sufficientl3 esta%lis(ed a cause of action against "icaros. )(e Sandigan%a3an ruled t(at t(e argu+ent of *etitioners t(at "icaros could not %e (eld *ersonall3 lia%le 'as untena%le %ecause t(e =8)C assets (ad %een ac1uired %3 )an t(roug( a *u%lic %idding dul3 a**roved %3 t(e !onetar3 8oard. According to t(e anti graft court& t(is argu+ent 'as a +atter of defense t(at could not %e resorted to in a +otion to dis+iss& and t(at did not constitute a valid ground for dis+issal. It 'as i++aterial t(at "icaros 'as not a %usiness associate of t(e +ain defendants and not an officer& a director& or a stocA(older of an3 of t(e defendant cor*orations. )(e *ara+ount issue (inged on (is acts as Central 8anA governor& *articularl3 (is *artici*ation in an allegedl3 illegal cons*irac3 'it( !arcos and Do+ingo to give undue advantage to )an2s %id for t(e =8)C assets. ISSUE >O< t(e +otion to dis+iss s(ould (ave %een granted on t(e grounds of@ "acA of cause of action Prescri*tion HELD 1. <O Ratio It is a 'ell settled rule t(at in a +otion to dis+iss %ased on t(e ground t(at t(e co+*laint fails to state a cause of action& t(e 1uestion su%+itted to t(e court for deter+ination is t(e sufficienc3 of t(e allegations in t(e co+*laint itself. >(et(er t(ese allegations are true or not is %eside t(e *oint& for t(eir trut( is (3*ot(eticall3 ad+itted. )(e issue rat(er is@ ad+itting t(e+ to %e true& +a3 t(e court render a valid 4udg+ent in accordance 'it( t(e *ra3er in t(e co+*laintQ So rigid is t(e nor+ *rescri%ed t(at if t(e court s(ould dou%t t(e trut( of t(e facts averred& it +ust not dis+iss t(e co+*laint %ut re1uire an ans'er and *roceed to (ear t(e case on t(e +erits. Reasoning Petitioners are seeAing t(e dis+issal of t(e *resent case& %ecause 516 t(e actions i+*uted to "icaros as Central 8anA governor 'ere allegedl3 official acts of t(e +e+%ers of t(e !onetar3 8oard acting as a collegial %od3$ and 526 t(e ac1uisition 'as done

A2010 Avena
t(roug( a *u%lic %idding and in good fait(. )(ese contentions are evidentl3 +atters of defense& t(e veracit3 of '(ic( +ust %e deter+ined in a full %lo'n trial 5or in a *retrial sti*ulation6& and not in a +ere +otion to dis+iss. A cause of action e7ists if t(e follo'ing ele+ents are *resent@ 516 a rig(t in favor of t(e *laintiff %3 '(atever +eans and under '(atever la' it arises or is created$ 526 an o%ligation on t(e *art of t(e na+ed defendant to res*ect and not to violate t(at rig(t$ and 506 an act or o+ission constituting a %reac( of o%ligation of t(e defendant to t(e *laintiff or violating t(e rig(t of t(e *laintiff& for '(ic( t(e latter +a3 +aintain an action for recover3 of da+ages. )(e allegations in t(e Second A+ended Co+*laint clearl3 and une1uivocall3 outlines its cause of action against "icaros. )(e Second A+ended Co+*laint 'as una+%iguous '(en it c(arged t(at "icaros& during (is lifeti+e& (ad cons*ired 'it( t(e +ain defendants in facilitating t(e allegedl3 1uestiona%le transfer of t(e =8)C assets to )an. )(is c(arge of ,cons*irac3, casts a 'ide net& sufficientl3 e7tensive to include all acts and all incidents incidental& related to or arising fro+ t(e c(arge of s3ste+atic *lunder and *illage against t(e +ain defendants Ratio An action to recover ill gotten 'ealt( is outside t(e *urvie' of t(e ordinar3 rules on *rescri*tion& as contained in Article 1149 of t(e Civil Code. Reasoning )(e instant action for reconve3ance& restitution& and accounting i+*leads t(e #stateE;eirs of =regorio "icaros for *revious acts co++itted %3 t(e decedent during (is lifeti+e& +ore *articularl3 for cons*iring 'it( t(e +ain defendants to *re4udice t(e Re*u%lic. Section 15 of Article [I of t(e 1/?: Constitution states t(at Ft(e rig(t of t(e State to recover *ro*erties unla'full3 ac1uired %3 *u%lic officials or e+*lo3ees& fro+ t(e+ or fro+ t(eir no+inees or transferees& s(all not %e %arred %3 *rescri*tion& lac(es or esto**el.L )(e intent of t(e constitutional *rovision *resu+a%l3 lies in t(e s*ecial attendant circu+stances and t(e *ri+ordial state interests involved in cases of suc( nature. Disposition Petition dis+issed

Prof. Victoria A.
TANCUNTIAN V /EMPESAW BB SCRA BB CORONA= Oc !7e" 3;, 9BB:

3BB

NATURE Petition for revie' under Rule 45 for t(e reversal of t(e decision and resolution of t(e Court of A**eals '(ic( affir+ed t(e order of t(e Regional )rial Court dis+issing an action for cancellation of title and da+ages for alleged lacA of legal *ersonalit3 of *etitioners. FACTS Plaintiffs& -austo )ancuntian& !acario )ancuntian and Cristina Ca3ang are %eneficial o'ners of t(at *arcel of land So+eti+e in !a3 1//4& t(e *laintiffs discovered t(at defendants a**lied for a free *atent and fraudulentl3 and ano+alousl3 secured titles on t(e *ortions of t(e sa+e *arcels of land fro+ t(e 8ureau of "ands Petitioners *ra3ed for t(e issuance of a te+*orar3 restraining order andEor 'rit of *reli+inar3 in4unction en4oining res*ondents fro+ selling& alienating and dis*osing t(e su%4ect *ro*erties or an3 *ortion t(ereof during t(e *endenc3 of t(e case. )(e3 also soug(t t(e cancellation and nullification of all t(e titles of t(e su%4ect *ro*erties in t(e na+es of res*ondents as 'ell as t(e reconve3ance t(ereof to *etitioners& *lus da+ages and attorne32s fees. Private res*ondents filed an o**osition to t(e +otion for t(e issuance of a 'rit of *reli+inar3 in4unction on t(e ground t(at *etitioners (ad neit(er t(e legal *ersonalit3 nor t(e aut(orit3 to institute t(e *roceedings for cancellation of title. Petitioners clarified t(at t(e3 'ere not asAing for t(e reversion of su%4ect *rivate land to t(e *u%lic do+ain& '(ic( 'ould (ave re1uired t(e *artici*ation of t(e Director of "ands or t(e Secretar3 of t(e De*art+ent of #nviron+ent and <atural Resources 5D#<R6 t(roug( t(e Solicitor =eneral. In essence& *etitioners 'ere seeAing t(e 1uieting of t(eir original titles t(at 'ould ulti+atel3 lead to t(e cancellation of *rivate res*ondents2 unla'full3 issued and void free *atent titles on t(e sa+e *rivate land. R)C +otu *ro*io dis+issed t(e co+*laint %ecause onl3 t(e Re*u%lic of t(e P(ili**ines t(roug( t(e Solicitor =eneral can file a case for cancellation of title on t(e ground of fraud in t(e *rocessing and issuance of t(e said title

Civil Procedure Digest

Petitioners filed +otions for reconsideration of t(e said order and in(i%ition of t(e *residing 4udge. .udge Salvador I%arreta& .r. of 8ranc( ? of t(e Davao Cit3 R)C& to '(o+ t(e case 'as re raffled after .udge Huitain2s in(i%ition& granted t(e +otion for reconsideration and set aside t(e order of dis+issal. In reinstating t(e co+*laint .udge I%arreta reasoned t(at Fit 'as error for t(e court to (ave dis+issed t(e case 'it(out a *rior +otion to dis+iss (aving %een filed %3 *rivate res*ondents.L Res*ondents Vicente =e+*esa'& et al. filed t(eir ans'er to t(e co+*laint& '(ile .ofre Saniel& anot(er res*ondent& filed a +otion to dis+iss. )(e3 *rinci*all3 invoAed *etitioner2s lacA of legal *ersonalit3 and aut(orit3 to institute t(e action for cancellation of t(eir titles. Res*ondent Saniel asserted t(at since t(e action 'as for t(e cancellation of t(e original certificates of title issued to t(e+ t(roug( free *atent& it 'as onl3 t(e =overn+ent t(roug( t(e Solicitor =eneral or (is dul3 aut(oriBed re*resentative '(o could institute t(e reversion *roceeding. #ventuall3& .udge I%arreta issued an order dis+issing t(e co+*laint. Petitioners a**ealed to t(e Court of A**eals '(ic( affir+ed t(e trial court and (eld@ )(ere is no dis*ute t(at t(e titles registered in t(e na+es of t(e defendants a**ellees are free *atent titles issued %3 t(e State t(roug( t(e 8ureau of "ands. )(us& not %eing o'ners& +uc( less grantors& *laintiffs a**ellants cannot as for cancellation or reconve3ance. Petitioners filed t(is *etition. Petitioners contend t(at t(e suit t(e3 initiall3 filed in t(e R)C of Davao Cit3 'as not an action for reversion 5'(erein t(e real *art3 in interest 'ould (ave indeed %een t(e Re*u%lic of t(e P(ili**ines6 %ut rat(er an action for cancellation of titles 'it( da+ages& since t(e *ro%le+ 'as Fdou%le titling.L Petitioners t(us *ra3 for t(e cancellation of titles and free *atents fraudulentl3 secured %3 res*ondents over t(e sa+e *arcels of land '(ic( 'ere alread3 registered to t(e+ t(roug( OC)s '(ic( 'ere still intact and in t(eir na+es at t(e ti+e of t(e issuance of res*ondents2 allegedl3 void titles. Petitioners insist t(at since t(e land in 1uestion 'as alread3 *rivate land at t(e ti+e it 'as issued a free *atent %3 t(e 8ureau of "ands& t(e inclusion of t(e Re*u%lic of t(e P(ili**ines as t(e real *art3 in interest 'as unnecessar3. ISSUE

A2010 Avena
>O< t(e *etitioners (ave institute t(e *roceedings. legal *ersonalit3 to HELD YES )(is legal dis*ute does not involve an action for t(e reversion of land to t(e *u%lic do+ain %ut one for t(e cancellation of null and void free *atents over *rivate land. Geirs of Am rocio Nionisala vs. Geirs of Gonorio 3acut@ An ordinar3 civil action for declaration of nullit3 of free *atents and certificates of title is not t(e sa+e as an action for reversion. )(e difference %et'een t(e+ lies in t(e allegations as to t(e c(aracter of o'ners(i* of t(e realt3 '(ose title is soug(t to %e nullified. In an action for reversion& t(e *ertinent allegations in t(e co+*laint 'ould ad+it State o'ners(i* of t(e dis*uted land. On t(e ot(er (and& a cause of action for declaration of nullit! of free patent and certificate of title 'ould re1uire allegations of t(e *laintiff2s o'ners(i* of t(e contested lot *rior to t(e issuance of suc( free *atent and certificate of title as 'ell as t(e defendant2s fraud or +istaAe$ as t(e case +a3 %e& in successfull3 o%taining t(ese docu+ents of title over t(e *arcel of land clai+ed %3 *laintiff. In suc( a case& t(e nullit3 arises strictl3 not fro+ t(e fraud or deceit %ut fro+ t(e fact t(at t(e land is %e3ond t(e 4urisdiction of t(e 8ureau of "ands to %esto' and '(atever *atent or certificate of title o%tained t(erefor is conse1uentl3 void a% initio. )(e real *art3 in interest is not t(e State %ut t(e *laintiff '(o alleges a *re e7isting rig(t of o'ners(i* over t(e *arcel of land in 1uestion even %efore t(e grant of title to t(e defendant. Petitioners clai+ continuing o'ners(i* over t(e su%4ect *arcels of land since 1/:9& as evidenced %3 OC) <o. 0 02? and 0 02/ in t(eir na+es. )(is can onl3 +ean& according to *etitioners& t(at t(e free *atents and OC)s issued to res*ondents in 1//0 and 1//1 'ere null and void %ecause t(e land 'as t(eir *rivate *ro*ert3& and as suc(& could not (ave %een validl3 dis*osed of %3 t(e =overn+ent. Confor+a%l3 'it( our ruling in ;eirs of A+%rocio Tionisala& *etitioners are t(erefore t(e real *art3 in interest in t(is case. -urt(er+ore& Rule 0& Section 2 of t(e 1//: Rules of Civil Procedure states@ Section 2. Parties in interest A real *art3 in interest is t(e *art3 '(o stands to %e %enefited or in4ured %3 t(e 4udg+ent in t(e suit& or t(e *art3 entitled to t(e avails of t(e suit. Inless

Prof. Victoria A.

3B3

ot(er'ise aut(oriBed %3 la' or t(ese Rules& ever3 action +ust %e *resented or defended in t(e na+e of t(e real *art3 in interest. Since& *etitioners are t(e real *arties in interest under t(e rules& t(en t(e3 (ave t(e legal *ersonalit3 to sue res*ondents. )(e land su%4ect of t(e controvers3 is titled eit(er in t(eir na+es or t(at of t(eir *redecessors in interest. )(e3 stand to %e %enefited or in4ured %3 '(atever decision t(e court +a3 decree. ;ence& t(e3 are entitled to t(e o**ortunit3 to defend t(eir titles and *resent t(eir side of t(e controvers3 since t(eir titles date even earlier t(an t(ose of t(e *atent (olders res*ondents. Disposition Petition =RA<)#D.

MALLION V ALCANTARA /.R. N!. 3:349; AZCUNA= Oc !7e" 13, 9BB5

NATURE Petition for revie' on certiorari under Rule 45& ROC FACTS Oct24&1//5@ Oscar P. !allion filed a *etition 'it( R)C San Pa%lo Cit3 seeAing a declaration of nullit3 of (is +arriage to #dit(a Alcantara under Article 09 of t(e -a+il3 Code& citing Alcantara2s alleged *s3c(ological inca*acit3. After trial on t(e +erits& R)C denied t(e *etition u*on t(e finding t(at !allion failed to adduce *re*onderant evidence to 'arrant t(e grant of t(e relief (e is seeAing. CA dis+issed t(e a**eal for failure of !allion to *a3 t(e docAet and ot(er la'ful fees 'it(in t(e regle+entar3 *eriod. After said decision attained finalit3& !allion filed on .ul3 12& 1/// anot(er *etition for declaration of nullit3 of +arriage 'it( R)C San Pa%lo Cit3& t(is ti+e alleging t(at (is +arriage 'it( Alcantara 'as null and void due to t(e fact t(at it 'as cele%rated 'it(out a valid +arriage license. -or (er *art& Alcantara filed an ans'er 'it( a !)D *ra3ing for t(e dis+issal of t(e *etition on t(e ground of res judicata and foru+ s(o**ing. R)C granted !)D and dis+issed t(e case forforu+ s(o**ing and +ulti*licit3 of suits. !allion2s !-R 'as also denied. ;ence& t(is *etition. !allion argues t(at '(ile t(e relief *ra3ed for in t(e t'o cases 'as t(e sa+e& t(at is& t(e declaration of nullit3 of (is +arriage to res*ondent& t(e cause of action in t(e earlier case 'as distinct and se*arate

Civil Procedure Digest

fro+ t(e cause of action in t(e *resent case %ecause t(e o*erative facts u*on '(ic( t(e3 'ere %ased as 'ell as t(e evidence re1uired to sustain eit(er 'ere different. 8ecause t(ere is no identit3 as to t(e cause of action& *etitioner clai+s t(at res judicata does not lie to %ar t(e second *etition. In t(is connection& *etitioner +aintains t(at t(ere 'as no violation of t(e rule on foru+ s(o**ing or of t(e rule '(ic( *roscri%es t(e s*litting of a cause of action. Alcantara& in (er co++ent& counters t(at '(ile t(e *resent suit is anc(ored on a different ground& it still involves t(e sa+e issue raised in t(e earlier civil case 5validit3 of t(eir +arriage6 and *ra3s for t(e sa+e re+ed3 5declaration of nullit36. Res*ondent t(us contends t(at *etitioner violated t(e rule on foru+ s(o**ing. !oreover& res*ondent asserts t(at *etitioner violated t(e rule on +ulti*licit3 of suits as t(e ground (e cites in t(is *etition could (ave %een raised during t(e trial in t(e first case. ISSUE >O< a *revious final 4udg+ent den3ing a *etition for declaration of nullit3 on t(e ground of *s3c(ological inca*acit3 is %ar to a su%se1uent *etition for declaration of nullit3 on t(e ground of lacA of +arriage license HELD? YES .Res judicata& defined@ a +atter ad4udged$ a t(ing 4udiciall3 acted u*on or decided$ a t(ing or +atter settled %3 4udg+ent. It also refers to t(e rule t(at a final 4udg+ent or decree on t(e +erits %3 a court of co+*etent 4urisdiction is conclusive of t(e rig(ts of t(e *arties or t(eir *rivies in all later suits on *oints and +atters deter+ined in t(e for+er suit. )(is doctrine is a rule '(ic( *ervades ever3 'ell regulated s3ste+ of 4uris*rudence and is founded u*on t(e follo'ing *rece*ts of co++on la'& na+el3@ 516 *u%lic *olic3 and necessit3& '(ic( +aAes it to t(e interest of t(e State t(at t(ere s(ould %e an end to litigation& N526 t(e (ards(i* on t(e individual t(at (e s(ould %e ve7ed t'ice for t(e sa+e cause. A contrar3 doctrine 'ould su%4ect t(e *u%lic *eace and 1uiet to t(e 'ill and neglect of individuals and *refer t(e gratification of t(e litigious dis*osition on t(e *art of suitors to t(e *reservation of t(e *u%lic tran1uilit3 and (a**iness. In t(is 4urisdiction& t(e conce*t of res judicata is e+%odied in Sec4:5%6 and 5c6 of Rule 0/ of ROC. Res judicata in t(is sense re1uires t(e concurrence of t(e follo'ing re*uisites@ 516 t(e for+er 4udg+ent is final$

A2010 Avena
526 it is rendered %3 a court (aving jurisdiction over t(e su%4ect +atter and t(e *arties$ 506 it is a 4udg+ent or an order on the merits$ and 546 t(ere is %et'een t(e first and t(e second actions identit! of *arties& of su%4ect +atter& and of causes of action. e# ! )e e"Dine K-e -e" -e c%,#e# !& %c i!n %"e i)en ic%*@ ascertain '(et(er t(e sa+e evidence 'ill sustain %ot( actions& or '(et(er t(ere is an identit3 in t(e facts essential to t(e +aintenance of t(e t'o actions. If t(e sa+e facts or evidence 'ould sustain %ot(& t(e t'o actions are considered t(e sa+e& and a 4udg+ent in t(e first case is a %ar to t(e su%se1uent action. 8ased on t(is test& it is a**arent t(at *etitioner is si+*l3 invoAing different grounds for t(e sa+e cause of action. 83 definition& a cause of action is t(e act or o+ission %3 '(ic( a *art3 violates t(e rig(t of anot(er. In %ot( *etitions& *etitioner (as t(e sa+e cause t(e declaration of nullit3 of (is +arriage to res*ondent. >(at differs is t(e ground u*on '(ic( t(e cause of action is *redicated. )(ese grounds cited %3 *etitioner essentiall3 s*lit t(e various as*ects of t(e *ivotal issue t(at (olds t(e Ae3 to t(e resolution of t(is controvers3& t(at is& t(e actual status of *etitioner and res*ondent2s +arriage. -urt(er+ore& t(e instant case is *re+ised on t(e clai+ t(at t(e +arriage is null and void %ecause no valid cele%ration of t(e sa+e tooA *lace due to t(e alleged lacA of a +arriage license. 8ut in t(e earlier case& *etitioner i+*liedl3 conceded t(at t(e +arriage (ad %een sole+niBed and cele%rated in accordance 'it( la'. Petitioner is no' %ound %3 t(is ad+ission. )(e alleged a%sence of a +arriage license '(ic( *etitioner raises no' could (ave %een *resented and (eard in t(e earlier case. Parties are %ound not onl3 as regards ever3 +atter offered and received to sustain or defeat t(eir clai+s or de+and %ut as to an3 ot(er ad+issi%le +atter '(ic( +ig(t (ave %een offered for t(at *ur*ose and of all ot(er +atters t(at could (ave %een ad4udged in t(at case. A *art3 cannot evade or avoid t(e a**lication of res judicata %3 si+*l3 var3ing t(e for+ of (is action or ado*ting a different +et(od of *resenting (is case. Pere& v. CA( t(e state+ent of a different for+ of lia%ilit3 is not a different cause of action& *rovided it gro's out of t(e sa+e transaction or act and seeAs redress for t(e 'rong. )'o actions are not necessaril3 for different causes of action si+*l3 %ecause t(e t(eor3 of t(e second 'ould not (ave %een o*en under t(e *leadings in t(e first. A *art3

Prof. Victoria A.

3B9

cannot *reserve t(e rig(t to %ring a second action after t(e loss of t(e first +erel3 %3 (aving circu+scri%ed and li+ited t(eories of recover3 o*ened %3 t(e *leadings in t(e first. "itigants are *rovided 'it( t(e o*tions on t(e course of action to taAe in order to o%tain 4udicial relief. Once an o*tion (as %een taAen and a case is filed in court& t(e *arties +ust ventilate all +atters and relevant issues t(erein. )(e losing *art3 '(o files anot(er action regarding t(e sa+e controvers3 'ill %e needlessl3 s1uandering ti+e& effort and financial resources %ecause (e is %arred %3 la' fro+ litigating t(e sa+e controvers3 all over again. ;aving e7*ressl3 and i+*liedl3 conceded t(e validit3 of t(eir +arriage cele%ration& *etitioner is no' dee+ed to (ave 'aived an3 defects t(erein. -or t(is reason& t(e Court finds t(at t(e *resent action for declaration of nullit3 of +arriage on t(e ground of lacA of +arriage license is %arred %3 t(e earlier decision dis+issing t(e *etition for declaration of nullit3 on t(e ground of *s3c(ological inca*acit3. Disposition Petition denied for lacA of +erit. Costs against *etitioner. SO ORD#R#D.

LEE BUN TIN/ V ALI/AEN :9 SCRA 419 A<)O<IO$ A*ril 22& 1/::
NATURE Original *etition in t(e SC. Certiorari 'it( *reli+inar3 in4unction. FACTS )(e case involves a 1uestion of res judicata. )(e first case 'as 3inglasan v -ee @un +ing. )(e *resent case seeAs for t(e reversal of t(e decision in afore+entioned case. DIN/LASAN V LEE BUN TIN/ Petitioners sold to "ee "iong& a C(inese citiBen 5*redecessor of "ee 8un )ing6& a *arcel of land situated in Ca*iB& for P9&000. After t(e sale "ee "iong constructed a concrete %uilding '(ic( (e used for (is lu+%er %usiness and (is residence. Petitioners soug(t for t(e declaration of nullit3 of t(e sale. Petitioners contend t(at t(e sale 'as a conditional sale 'it( t(e rig(t to re*urc(ase& %ut t(e R)C and CA found t(at t(e sale 'as a%solute. Anot(er contention 'as t(at t(e sale is null and void as it violated t(e 1/:0 Constitution& Art [III& Sec. 5

Civil Procedure Digest

5t(at foreigners cannot o'n land in t(e P(ili**ines6. On J,ne 92, 3>45, -e C!," ,p-e*) -e #%*e. )(e Su*re+e Court (eld t(at even if "ee "iong violated t(e Constitution& t(e sale cannot %e dee+ed null and void %ecause at t(e ti+e of t(e sale& one of t(e *laintiffs& .udge Rafael Dinglasan 5an assistant attorne3 at t(e DO.6 Ane' of t(e said Constitutional *rovision. )(e vendor 'as e1uall3 guilt3& and t(e doctrine of pari delicto a**lied. )(e doctrine of in pari delicto %arred *etitioner a**ellants fro+ recovering t(e title to t(e *ro*ert3 in 1uestion and renders unnecessar3 t(e consideration of t(e ot(er argu+ents *resented. )(e Court *ointed out t(e a%sence of *olic3 governing lands sold to aliens in violation of t(e Constitutional *ro(i%ition. PRESENT CASE TKe*'e @39A (e%"# *% e"& *rivate res*ondents Dinglasan et al. filed a co+*laint on JULY 3, 3>5; for t(e recover3 of t(e sa+e *arcel of land 5su%4ect +atter of t(e *revious case6& on t(e %asis of t(e decision of t(e SC in Philippine @an'ing Corporation v -ui She. )(e res*ondents again asserted t(at t(e sale violated t(e Constitution. )(e3 *ra3ed t(at t(e3 %e declared t(e legal o'ners& t(e land %e surrendered& t(at "ee 8un )ing receive P9T as restitution for t(e land& and t(at t(e3 %e *aid P2T +ont(l3 until t(e return of t(e *ro*ert3. A D! i!n ! )i#Di## 'as filed %3 "ee 8un )ing on t(e ground of res judicata# alleging t(at t(e issues (ave definitel3 %een settled in t(e Dinglasan case. On Oct. 10& 1/9? Aligaen of Ca*iB C-I denied t(e +otion to dis+iss. A +otion for reconsideration 'as filed %3 defendants. )(e clai+ed t(at in t(e case of P(ili**ine 8anAing Cor*oration& t(ere is no state+ent '(ic( 'ould (ave t(e effect of reo*ening and c(anging *reviousl3 ad4udicated rig(ts of *arties and finall3 settled cases 5+eaning t(ere is no e7*ress *ro(i%ition against c(anging *revious cases6. "ee 8un )ing reiterated t(eir defense of res judicata on t(e %asis of t(e decision of t(e SC on .une 2:& 1/59. T-e( p"%(e) -% -e c!Dp*%in 7e )i#Di##e). ISSUE >O< t(e case Aafael 3inglasan# et al. v -ee @un +ing& et al. could %e relitigated in vie' of t(e su%se1uent decision of t(e SC in P(ili**ine 8anAing Cor*. v "ui S(e HELD NO.

A2010 Avena
Ratio It is clear t(at *osterior c(anges in t(e doctrine of t(e SC cannot retroactivel3 %e a**lied to nullif3 a *rior final ruling in t(e sa+e *roceeding '(ere t(e *rior ad4udication 'as (ad& '(et(er civil or cri+inal. Reasoning Reasons of *u%lic *olic3& 4udicial orderliness& econo+3 and 4udicial ti+e and t(e interests of litigants& as 'ell as t(e *eace and order of societ3& all re1uire t(at sta%ilit3 %e accorded t(e sole+n and final 4udg+ents of t(e courts or tri%unals of co+*etent 4urisdiction. R,+ J5DIC!T! )(e doctrine of res 4udicata a**lies '(ere& %et'een a *ending action and one '(ic( (as %een finall3 and definitel3 settled& t(ere is identit3 of *arties& su%4ect +atter and cause of action. Parties s(ould not %e allo'ed to litigate t(e sa+e issue +ore t(an once. Rule 0/& Sec. 4/5%6 5%6 In ot(er cases t(e 4udg+ent or order is& 'it( res*ect to t(e +atter directl3 ad4udged or as to an3 ot(er +atter t(at could (ave %een raised in relation t(ereto& conclusive %et'een t(e *arties and t(eir successors in interest %3 t(e title su%se1uent to t(e co++ence+ent of t(e action or s*ecial *roceeding& litigating for t(e sa+e title and in t(e sa+e ca*acit3. 5c6 In an3 ot(er litigation %et'een t(e sa+e *arties or t(eir successors in interest& t(at onl3 is dee+ed to (ave %een ad4udged in a for+er 4udg+ent '(ic( a**ears u*on it face to (ave %een so ad4udged& or 'as actuall3 and necessaril3 included t(erein or necessar3 t(ereto. 4/5%6 refers to %ar %3 *rior 4udg+ent& '(ile 4/5c6 refers to conclusiveness of 4udg+ent. )(e 4udg+ent in t(e first case constitutes an a%solute %ar to t(e su%se1uent action. 5;o'ever& even if t(ere is identit3 of *arties %ut no identit3 or cause of action& t(e first 4udg+ent is conclusive in t(e second case. In t(e *resent case& t(e na+es of t(e *arties involved 'ere t(e sa+e& and t(e action and relief *ra3ed for are identicalGannul+ent of sale and recover3 of t(e *arcel of land. a su%se1uent reinter*retation of t(e la' +a3 %e a**lied to ne' cases %ut not to an old one finall3 and conclusivel3 deter+ined %3 t(e *eo*le. Once t(e 4udg+ent of t(e SC %eco+es final& it is %inding on all inferior courts& and (ence %e3ond t(eir *o'er and aut(orit3 to alter or +odif3. DISPOSITION

Prof. Victoria A.

3B1

Certiorari is granted& 'it( costs against *rivate res*ondents.

VILLARINO ' AVILA /.R. N!. 3133>3 TIN/A, J.= Sep eD7e" 95, 9BB5
NATURE Petition for revie' on certiorari assailing t(e decision of t(e CA affir+ing t(e order of dis+issal of t(e R)C FACTS Petitioners s*ouses Villarino filed an action for Annul+ent of )itle& Reconve3ance& Da+ages and In4unction against res*ondents t(e Avilas and t(e Provincial S(eriff. Petitioners o**osed t(e a**lication of t(e Avilas for t(e registration of "ot <o. /9: on t(e ground t(at a *ortion of "ot <o. /9: encroac(ed u*on "ot <o. /9? to t(e e7tent of 2&149 s1uare +eters. "ot <o. /9? is t(e ad4acent *ro*ert3 %elonging to *etitioners. In t(eir co+*laint& *etitioners averred t(at t(e registration of "ot <o. /9: 'as %ased on an erroneous surve3 and tec(nical descri*tion. )(e3 soug(t t(e reconve3ance of t(e dis*uted area and t(e cancellation of t(e OC) to reflect t(e conse1uent reduction in area. )(e Avilas +oved for t(e dis+issal of t(e case on t(e ground of res judicata. After a *reli+inar3 (earing& t(e R)C issued t(e order dis+issing t(e case. Petitioners elevated t(e +atter to t(e CA& contending t(at t(e R)C erred in dis+issing t(e case %ased on res judicata. )(e CA u*(eld t(e incontroverti%ilit3 of t(e decree of registration one 3ear after its issuance. It also de%unAed t(e erroneous surve3 and tec(nical descri*tion foisted %3 *etitioners as not t(e fraud conte+*lated under Sec. 50 of PD 152/& '(ic( allo's t(e reconve3ance of fraudulentl3 registered land. Petitioners filed t(e instant *etition. )(e3 argued t(at t(e 4udg+ent in t(e land registration case is not 3et final %ecause t(e aggrieved *art3 can still avail of t(e re+ed3 of reconve3ance and recover3 of da+ages& and t(at t(e trial court t(erein (ad no 4urisdiction over t(e dis*uted area since it (ad alread3 %een covered %3 an OC) issued in t(e na+e of *etitioners. ISSUES >O< *etitioner2s co+*laint is %arred %3 res judicata

Civil Procedure Digest

HELD C#S Ratio -or res judicata to serve as an a%solute %ar to a su%se1uent action& t(e follo'ing re1uisites +ust concur@ 516 t(e for+er 4udg+ent or order +ust %e final$ 526 t(e 4udg+ent or order +ust %e on t(e +erits$ 506 it +ust (ave %een rendered %3 a court (aving 4urisdiction over t(e su%4ect +atter and *arties$ and 546 t(ere +ust %e %et'een t(e first and second actions& identit3 of *arties& of su%4ect +atter& and of causes of action. >(en t(ere is no identit3 of causes of action& %ut onl3 an identit3 of issues& t(ere e7ists res judicata in t(e conce*t of conclusiveness of 4udg+ent. )(e rule on conclusiveness of 4udg+ent %ars t(e relitigation of *articular facts or issues in anot(er litigation %et'een t(e sa+e *arties on a different clai+ or cause of action. Reasoning All t(e ele+ents of res judicata in t(e +ode of %ar %3 *rior 4udg+ent are *resent. )(ere is no 1uestion t(at said decision 'as an ad4udication on t(e +erits. Petitioners and res*ondents 'ere t(e sa+e *art3 litigants. )(e su%4ect +atter of t(e civil case 'as t(e sa+e *ro*ert3 t(at 'as t(e su%4ect +atter in t(e "RC case. Petitioners cause of action in t(e civil case 'ould call for t(e deter+ination and ad4udication of o'ners(i* over t(e dis*uted *ortion& an issue alread3 *assed %3 t(e land registration court '(en it confir+ed t(e Avilas title over "ot <o. /9:. Petitioners *oint out t(at t(e land registration court (ad no 4urisdiction over t(e dis*uted *ortion as t(is (ad alread3 %een decreed in an earlier land registration case and a second decree for t(e sa+e land is null and void. Petitioners clai+ t(at t(e dis*uted *ortion is covered %3 t(eir title& %ut t(at it 'as erroneousl3 included in t(e surve3 and tec(nical descri*tion su%4ect of t(e Avilas2 land registration a**lication. )(at 'as *recisel3 t(e content and t(rust of *etitioners2 o**osition to t(e Avilas2 land registration a**lication. 8ut t(e land registration court de%unAed t(e o**osition and u*(eld t(e a**lication. Petitioners could (ave a**ealed t(e decision of t(e land registration court. )(eir failure to do so rendered said decision final and e7ecutor3. Disposition Petition D#<I#D.

A2010 Avena
Revie' on certiorari of decision of Court of A**eals FACTS =onBales filed co+*laint 5action for s*ecific *erfor+ance6 against !anio s*s& seeAing e7ecution of deed of sale of *ro*ert3 s(e %oug(t fr Priscilla !anio. =onBales said s(e *d do'n*a3+ent to Priscilla %ecause s(e (ad an SPA fro+ (er son Aristotle& t(e o'ner of t(e land. )C ruled in favor of =onBales. =onBales de*osited %alance 'E t(e court and filed +otion for e7ecution& 'Ec 'as 'Edra'n %ec decision 'asn2t served on defendants. S(eriff finall3 served a co*3 at an ungodl3 (our of 12 +n. )C2s decision %eca+e final and e7ecutor3. )(e Da%ons& clai+ing to (ave %oug(t t(e land fr Aristotle& filed %efore t(e CA a *etition for annul+ent of 4udg+ent and orders of t(e )C. )(e3 alleged t(at t(e decision 'as void for lacA of 4urisdiction over t(eir *ersons as t(e real *arties in interest. CA issued resolution restraining )C fro+ i+*le+enting its decision. ;ence& t(is *etition %3 =onBales. ISSUE0S 1. >O< t(ere 'as %asis to annul t(e decision of t(e )C. 2. >O< t(e Da%ons can seeA annul+ent of t(e )C 4udg+ent HELD 1. C#S. Ratio An action s(ould %e %roug(t against t(e real *art3 in interest. )(e real *art3 in interest is t(e one '(o 'ould %e %enefited or in4ured %3 t(e 4udg+ent or is t(e one entitled to t(e avails of t(e suit. Reasoning <a+ed *etitioners (erein are Carillo 5Presiding .udge6& =u3ot 5ClerA of Court6& Seno3 5De*ut3 S(eriff6& Risonar 5Registrar of Deeds6& and =onBales. Carillo& =u3ot& Seno3 and Risonar are not interested *arties %ecause t(e3 'ould not %enefit fro+ t(e affir+ative reliefs soug(t. Onl3 =onBales re+ains as genuine *art3 *etitioner in t(is case. =onBales insists t(at t(e Da%ons (ave no rig(t to seeA annul+ent of t(e )C2s 4udg+ent %ec t(e32re not *arties to t(e s*ecific *erfor+ance case. 8ut t(e Da%ons insist t(at t(e3 are *arties in interest %ec t(e3 are %u3ers& o'ners and *ossessors of t(e contested land. )(e s*ecific *erfor+ance case %roug(t %3 =onBales to t(e )C na+ed Priscilla !anio and

Prof. Victoria A.

3B:

(us%and as defendants. ;o'ever& t(e lot is o'ned %3 Aristotle& t(eir son. Priscilla (ad no interest on t(e lot and can (ave no interest in t(e 4udg+ent of t(e )C. -ailure to i+*lead Aristotle !anio renders t(e *roceedings in t(e s*ecific *erfor+ance case null and void. 2. C#S. Ratio A *erson need not %e a *art3 to t(e 4udg+ent soug(t to %e annulled. >(at is essential is t(at (e can *rove t(at t(e 4udg+ent 'as o%tained %3 fraud and (e 'ould %e adversel3 affected t(ere%3. Reasoning Alt(oug( t(e Da%ons are not *arties to t(e s*ecific *erfor+ance case& an3 finding of e7trinsic fraud 'ould adversel3 affect t(eir o'ners(i* and could %e %asis of annul+ent of 4udg+ent. In t(is case& =onBales Ane' of t(e sale of lot %3 Aristotle !anio to t(e Da%ons 3et =onBales did not include t(e Da%ons in (er *etition. )(is is e7trinsic fraud. Disposition Petition is denied.

RE/ALA V SANDI/ANBAYAN /.R. N!. 3B41; FAPUNAN= Sep eD7e" 9B, 3>>5
NATURE S*ecial civil action for certiorari FACTS )(is is an offs(oot of t(e co+*laint %efore t(e Sandigan%a3an t(roug( t(e PC== against #duardo Co4uangco .r. for recover3 of alleged ill gotten 'ealt( including s(ares of stocAs in certain cor*orations. ACCRA "a' -ir+ *erfor+s legal svcs incl. organiBation and ac1uisition of %usiness associationsEorgs. So+eti+es& +e+%ers of t(e fir+ act as incor*orators or stocA(olders. )(e3 ac1uire info relative to assets of clients and t(eir *ersonalE%iB circu+stances. In t(is case& ACCRA la'3ers acted as no+inees stocA(olders of said cor*s involved in se1uestration *roceedings. PC== filed )(ird A+ended Co+*laint 'Ec e7cluded res*ondent Raul Roco %ecause (e *ro+ised to reveal identit3 of *rinci*alEs for '(o+ (e acted as no+inee stocA(older ACCRA la'3ers said it 'as in furt(erance of legit la'3ering and t(e3 %eca+e (olders of s(ares of stocA onl3 as incor*orating or ac1uiring stocA(olders&

CARILLO V. CA @DABON AND DABONA @#,p"%A

NATURE

Civil Procedure Digest

and as suc(& t(e3 do not clai+ an3 *ro*rietar3 interest in said s(ares. Petitioner Para4a ;a3udini& '(o se*arated fr ACCRA& filed a se*arate ans'er. ACCRA la'3ers filed a counter +otion t(at PC== also e7clude t(e+ as *arties defendant as it did to Roco. PC== set conditions for e7clusion of t(e *etitioners@ disclosure of identit3 of clients su%+ission of docs su%stantiating la'3er client relations(i* su%+ission of deeds of assign+ents *etitioners e7ecuted in favor of its clients covering t(eir res*ective s(are(oldings. PC== *resented su**osed *roof to su%stantiate co+*liance %3 Roco of t(e said conditions. Sandigan%a3an denied e7clusion of *etitioners fr t(e PC== case. )(at denial is no' %eing 1uestioned. ISSUE0S 1. >O< t(ere is a cause of action against t(e defendants 2. >O< la'3er client confidentialit3 a**lies in t(is case 0. >O< Roco and t(e ACCRA la'3ers are si+ilarl3 situated& t(us& +aAing t(e denial of t(e ACCRA la'3ers2 e7clusion fro+ t(e PC== case a violation of e1ual *rotection clause. HELD 1. <O. Reasoning It is 1uite a**arent t(at *etitioners 'ere i+*leaded %3 t(e PC== as co defendants to force t(e+ to disclose t(e identit3 of t(eir clients. Clearl3& res*ondent PC== is not after *etitioners %ut t(e F%igger fis(L as t(e3 sa3 in street *arlance. )(is *lo3 is 1uite clear fro+ t(e PC==2s 'illingness to cut a deal 'it( *etitioners t(e na+es of t(eir clients in e7c(ange for e7clusion fro+ t(e co+*laint It 'ould see+ t(at *etitioners are +erel3 standing in for t(eir clients as defendants in t(e co+*laint. Petitioners are %eing *rosecuted solel3 on t(e %asis of activities and services *erfor+ed in t(e course of t(eir duties as la'3ers. Huite o%viousl3& *etitioners2 inclusion as co defendants in t(e co+*laint is +erel3 %eing used as leverage to co+*el t(e+ to na+e t(eir clients and conse1uentl3 to ena%le t(e PC== to nail t(ese clients. Suc( %eing t(e case& res*ondent PC== (as no valid cause of action as against *etitioners and s(ould e7clude t(e+ fro+ t(e )(ird A+ended Co+*laint

A2010 Avena
2. Ces Ratio )(e rig(t to counsel of an accused is also involved in t(is issue. If client 'ere +ade to c(oose %et legal re*resentation 'Eo effective co++unication and disclosure and legal re*resentation 'E all (is secrets revealed t(en (e +ig(t %e co+*elled to sta3 a'a3 fro+ t(e 4udicial s3ste+ or lose rig(t to counsel. Reasoning =#<#RA" RI"#@ Court (as rig(t to Ano' t(at client '(ose *rivileged info is soug(t to %e *rotected is fles( and %lood. Privilege e7ists onl3 after att3 client relations(i* (as %een esta%lis(ed. It does not attac( until t(ere is a client. Privilege generall3 *ertains to su%4ect +atter of t(e relations(i*. Due *rocess re1uires t(at t(e o**osing *art3 s(ould& as a general rule& Ano' (is adversar3. #[C#P)IO<S Client identit3 is *rivileged '(ere a strong *ro%a%ilit3 e7ists t(at revealing client2s na+e 'ould i+*licate t(at client in t(e ver3 activit3 for 'Ec (e soug(t t(e la'3er2s advice. It is also *rivileged '(ere disclosure 'ould o*en t(e client to civil lia%ilit3. It is also *rivileged '(en govt2s la'3ers (ave no case against an att32s client unless& %3 revealing t(e client2s na+e& t(e said na+e 'ould furnis( t(e onl3 linA t(at 'ould %e necessar3 to convict an individual of a cri+e. A*art fr t(e e7ce*tions a%ove& ot(er situations could 1ualif3 as e7ce*tions. Info relating to t(e identit3 of client +a3 fall 'Ein *rivilege '(en client2s na+e itself (as inde*endent significance suc( t(at disclosure 'ould reveal client confidence. )(e instant case -A""S I<D#R A) "#AS) 2 #[C#P)IO<S. -irst& disclosure 'ould lead to esta%lis( t(e client2s connection 'E t(e ver3 fact in issue. Also& t(e linA %et t(e offense and t(e legal adviceEsvc 'as dul3 esta%lis(ed %3 no less t(an t(e PC== itself. Petitioners (ave a legiti+ate fear t(at identif3ing t(eir clients 'ould i+*licate t(e+. Revelation of t(e na+e 'ould *rovide t(e linA for *rosecution to %uild its case& '(ere none ot(er'ise e7ists. It is diff '(en t(e client consults att3 for illicit *ur*oses& seeAing advice on (o' to around t(e la'. In t(is case& a client t(inAs (e +ig(t (ave *reviousl3

Prof. Victoria A.

3B4

co++itted so+et(ing illegal and consults att3 a%t it. Court is tr3ing to avoid fis(ing e7*edition %3 t(e *rosecution. After all& t(ere are alternative sources of info availa%le to *rosecutor 'Ec does not de*end on utiliBing a defendant2s counsel as convenient and readil3 availa%le source of info. "a'3er client confidentialit3 and lo3alt3 e7ists not onl3 during relations(i* %ut even after ter+ination of t(e relations(i*. 0. Ces Res*ondents failed to s(o' t(at Roco actuall3 revealed t(e identit3 of (is clients. PC== s(ld s(o' t(at Roco 'as treated as a s*ecies a*art fr t(e ACCRA la'3ers on %asis of classification 'Ec +ade su%stantial distinctions %ased on real differences. <o suc( su%stantial distinctions e7ist. Disposition Decision of t(e Sandigan%a3an annulled and set aside

DISMISSAL BY CLAIMANT /OJO V /OYALA @#,p"%A

NATURE A**eal fro+ a decision of t(e C-I of Sorsogon FACTS A**ellee Segundo =o3ala& 'it( (is no' deceased 'ife Antonina sold to =o4o a 2.5 (ectare *arcel of agricultural land for P:50 %3 a FDeed of Pacto de Retro SaleL& t(e re*urc(ase to %e +ade 'it(in one 3ear& as stated in t(e deed. )(e deed also indicates t(at t(e vendee *aid anot(er P100 in addition to t(e *urc(ase *rice. 10 3ears after t(e e7ecution of said docu+ent& =o4o filed a case 'it( t(e C-I against =o3ala %3 'a3 of a *etition for consolidation of o'ners(i* of said land. =o4o alleged t(at t(e *eriod for re*urc(asing (ad e7*ired and o'ners(i* (ad %eco+e consolidated in (i+ and t(at for *ur*oses of recording t(e consolidation in t(e Registr3 of Pro*ert3& it 'as necessar3 t(at a 4udicial order %e issued to t(at effect. =o3ala filed an ans'er to t(e *etition& alleging t(at t(e3 (ad o%tained a cas( loan of P?10 fro+ =o4o *a3a%le 'Ein one 3ear 'Eo interest and t(at to guarantee *a3+ent& =o3ala e7ecuted a +ortgage in

Civil Procedure Digest

favor of t(e *etitioner on t(e *arcel of land in 1uestion. ;ence& alt(oug( t(e deed 'as e7ecuted in t(e for+ of a *acto de retro sale& t(e true intention of t(e *arties 'as for it to %e a +ere +ortgage to secure *a3+ent. =o3ala furt(er clai+ed t(at (e and (is 'ife atte+*ted to *a3 t(e de%t %ut *etitioner refused to receive t(e su+ and cancel t(e +ortgage. 83 'a3 of counterclai+& =o3ala *ra3ed t(at *etitioner receive t(e P?10 and t(at t(e docu+ent of +ortgage %e declared so& and not a *acto de retro sale. ;e furt(er *ra3ed for P1?00 *er annu+ until t(e final ter+ination of t(e case for t(e fruits of said *ro*ert3 and in t(e case t(at t(e instru+ent %e dee+ed a true *acto de retro sale& t(at *etitioner %e ordered to e7ecute a deed of resale in favor of res*ondents in accordance 'it( A1909CC. Counsel for =o3ala filed a +anifestation infor+ing t(e )C t(at t(e na+ed defendant& Antonina& (ad died& *ro+*ting t(e )C to issue an order re1uiring counsel for t(e *laintiff to su%+it an a+ended Co+*laint su%stituting Antonina 'it( one of (er successors in interest as *art3 defendants. =o3ala filed a +otion to dis+iss t(e *etition on t(e ground t(at not'it(standing t(e la*se of 40 da3s after a**ellant2s recei*t of a co*3 of t(e said )C order& said a**ellant failed and neglected to su%+it t(e a+ended co+*laint re1uired of (i+. A**ellant o**osed t(e +otion %ut t(e )C dis+issed t(e co+*laint. A**ellee filed a +otion to declare a**ellant in default in res*ect of said a**ellee2s counterclai+& '(ic( 'as granted %3 t(e )C& '(ic( furt(er re1uired =o3ala to su%+it (is evidence %efore t(e ClerA of Court. )C rendered favora%le 4udg+ent on a**ellee2s counterclai+& declaring t(e Deed of Pacto de Retro Sale an e1uita%le +ortgage and ordering =o4o to receive t(e P?10 and to restore *ossession to t(e defendants and allo'ing t(e+ to redee+ t(e sa+e. A**ellant a**ealed to t(e CA& '(ic( u*on finding t(at t(e said a**eal involves *urel3 1uestions of la'& certified t(e sa+e to t(e SC. ISSUES >O< )C erred in declaring *laintiff in default 'it( res*ect to defendant2s counterclai+ HELD C#S. )(e a**ellant contends t(at t(ere is no occasion for t(e )C to declare (i+ in default in res*ect of a**ellee2s counterclai+ as said counterclai+ falls 'it(in t(e categor3 of co+*ulsor3 counterclai+ '(ic( does not call for an inde*endent

A2010 Avena
ans'er as t(e co+*laint alread3 denies its +aterial allegations. It is no' settled t(at a *laintiff '(o fails or c(ooses not to ans'er a co+*ulsor3 counterclai+ +a3 not %e declared in default& *rinci*all3 %ecause t(e issues raised in t(e counterclai+ are dee+ed auto+aticall3 4oined %3 t(e allegations of t(e co+*laint. >(ile it is true t(at under Sec. 0 of Rule 1:& a co+*laint +a3 %e dis+issed for failure to *rosecute if t(e *laintiff fails to co+*l3 'it( an order of t(e court& said *rovision cannot a**l3 '(en t(e order ignored is a void one& as in t(is case. 5As in Sec 20 of Rule 0& t(e deat( of t(e defendant in a contractual +one3 clai+ does dis+iss suc( action for recover3& %ut 'ill %e allo'ed to continue until final 4udg+ent is entered. -avora%le 4udg+ent o%tained %3 t(e *laintiff s(all %e enforced in t(e +anner *rovided in t(ese Rules for *rosecuting clai+s against t(e estate of a deceased *erson. In 8arra+eda vs 8ar%ara& t(e SC (eld t(at an order to a+end t(e co+*laint& %efore t(e *ro*er su%stitution of *arties as directed %3 Sec. 1:& Rule 0 5Sec. 19& ne' la'6& is void and i+*oses u*on t(e *laintiff no dut3 to co+*l3 t(ere'it( to t(e end t(at an order dis+issing t(e said co+*laint& for suc( non co+*liance& 'ould si+ilarl3 %e void. It 'as furt(er (eld in -erriera vs =onBales t(at t(e continuance of a *roceeding during t(e *endenc3 of '(ic( a *art3 t(ereto dies& 'it(out suc( *art3 (aving %een validl3 su%stituted in accordance 'it( t(e rules& a+ounts to lacA of 4urisdiction. =9,R,FOR,( the decision appealed fro$ is set aside

Prof. Victoria A.

3B5

JUD/MENT ON THE PLEADIN/S PRE-TRIAL JONATHAN LANDOIL INTERNATIONAL CO. V. MAN/UDADATU BB SCRA BB PAN/ANIBAN, A,+,# 35, 9BB:
NATURE Petition for Revie' under Rule 45 FACTS S*ouses Su(arto and !iria+ SangAi !angudadatu 5Res*ondent6 filed 'it( t(e R)C of )acurong Cit3& Sultan Tudarat& a Co+*laint for da+ages against .onat(an "andoil International Co.& Inc. 5,."I,

Petitioner6. Parties su%+itted t(eir res*ective Pretrial 8riefs. )rial *roceeded 'it(out t(e *artici*ation of *etitioner& '(ose a%sence during t(e *retrial (ad led t(e trial court to declare it in default. Petitioner received a co*3 of t(e R)C2s Decision. It filed an O+ni%us !otion for <e' )rial and C(ange of Venue. )(is !otion 'as dee+ed su%+itted for resolution %ut 'as eventuall3 denied %3 t(e trial court in an Order. Petitioner received a co*3 of a >rit of #7ecution. Alleging t(at it (ad 3et to receive a co*3 of an Order resolving t(e O+ni%us !otion for <e' )rial& *etitioner filed a !otion to Huas(ERecall >rit of #7ecution. Its counsels Att3s. .ai+e ". !ario .r. and Dioscoro =. Peligro su%+itted se*arate 'it(dra'als of a**earance. On t(e sa+e date& t(e la' fir+ Ong A%ad Santos N !eneses filed an #ntr3 of A**earance 'it( Su**le+ent to !otion to Huas(ERecall >rit of #7ecution. )o its Su**le+ent& *etitioner attac(ed t(e Affidavits of Att3s. !ario and Peligro attesting t(at t(e3 (ad not 3et received a co*3 of t(e Order resolving t(e O+ni%us !otion for <e' )rial. On t(e sa+e da3& .anuar3 :& 2002& *etitioner received a S(eriff2s <otice regarding t(e *u%lic auction sale of its *ro*erties. 83 reason of t(e i++ediate t(reat to i+*le+ent t(e >rit of #7ecution& it filed 'it( t(e CA a Petition for Pro(i%ition seeAing to en4oin t(e enforce+ent of t(e >rit until t(e resolution of t(e !otion to Huas(. R)C issued an Order directing res*ondents to file t(eir 'ritten co++ent on t(e !otion to Huas( and sc(eduled t(e (earing t(ereon for -e%ruar3 1& 2002. Petitioner received a co*3 of res*ondents2 Vigorous O**osition 5Re@ !otion to Huas(ERecall >rit of #7ecution& and its Su**le+ent6 dated .anuar3 19& 2001. Attac(ed to t(is *leading 'ere t'o se*arate Certifications su**osedl3 issued %3 t(e *ost+aster of )acurong Cit3& affir+ing t(at t(e Order den3ing t(e !otion for <e' )rial (ad %een received %3 *etitioner2s t'o *revious counsels of record. )(e Certification *ertaining to Att3. Peligro alleged t(at a certain !ic(elle Vi1uira (ad received a co*3 of t(e Order intended for (i+. )(e Certification as regards Att3. !ario stated t(at (e (ad *ersonall3 received (is co*3 on Dece+%er 21& 2001. Petitioner *ersonall3 served counsel for res*ondents a <otice to )aAe De*osition I*on Oral #7a+ination of Att3s. !ario and Peligro. )(e De*osition 'as intended to *rove t(at *etitioner (ad not received a co*3 of t(e Order den3ing t(e O+ni%us !otion for <e' )rial. At /@00 a.+. on .anuar3 2?& 2002& t(e de*osition taAing *roceeded as sc(eduled at t(e

Civil Procedure Digest

8usiness Center Conference Roo+ of t(e !andarin Oriental ;otel in !aAati Cit3 %efore Att3. Ana Peralta <aBareno& a notar3 *u%lic acting as de*osition officer. At 12@00 noon of t(e sa+e da3& res*ondents sent *etitioner a fa7 +essage via .RS #7*ress& advising it t(at t(e3 (ad filed a !otion to StriAe Off fro+ t(e records t(e <otice to )aAe De*osition$ and asAing it not to *roceed until t(e R)C 'ould (ave resolved t(e !otion& a co*3 of '(ic( it eventuall3 received later in t(e da3& at 0@10 *.+. On .anuar3 2/& 2002& se*arate <otices 'ere sent %3 Att3. <aBareno to Att3s. !ario and Peligro& as 'itnesses& for t(e+ to e7a+ine t(e transcri*t of t(eir testi+onies. On t(e sa+e date& Att3. <aBareno filed via registered +ail a Su%+ission to t(e R)C attac(ing 516 a Certification t(at t(e 'itnesses (ad %een *resent and dul3 s'orn to %3 (er$ 526 a transcri*t %earing t(eir signatures& attesting t(at it 'as a true record of t(eir testi+onies$ 506 a co*3 of t(e <otice to )aAe De*osition delivered to (er$ and 546 a co*3 of t(e <otice signed %3 res*ondents2 counsel. ;earing on t(e !otion to Huas(& *etitioner su%+itted its 516 -or+al Offer of #7(i%its& toget(er 'it( t(e docu+entar3 e7(i%its +arAed during t(e de*osition taAing$ 526 Re*l3 to res*ondents2 Vigorous O**osition to t(e !otion to Huas($ and 506 O**osition ad Cautela+ to res*ondents2 !otion to StriAe Off t(e <otice to )aAe De*osition. !ean'(ile CA issued a Resolution den3ing t(e Petition for Pro(i%ition. Petitioner received a co*3 of t(e R)C2s Resolution dated -e%ruar3 21& 2002& den3ing t(e !otion to Huas(& it received a co*3 of res*ondents2 !otion to Set Auction Sale of Defendant2s "evied Pro*erties. Petitioner filed 'it( t(e CA a Petition for Certiorari and Pro(i%ition& seeAing to (old in a%e3ance t(e -e%ruar3 21& 2002 R)C Resolution and t(e Dece+%er 4& 2001 >rit of #7ecution. Petitioner alleged t(at since it (ad not received t(e Order den3ing its !otion for <e' )rial& t(e *eriod to a**eal (ad not 3et la*sed.V00W It t(us concluded t(at t(e 4udg+ent& not %eing final& could not %e t(e su%4ect of a 'rit of e7ecution. Ruling of t(e Court of A**eals ^ It ruled t(at *etitioner could no longer avail itself of a de*osition under Rule 20 of Rules of Court& since trial (ad alread3 %een ter+inated. )(e a**ellate court also o*ined t(at t(e alleged error co++itted %3 t(e trial court '(en t(e latter disregarded t'o 'itnesses2 oral de*ositions 'as an error of 4udg+ent not revie'a%le %3 certiorari or *ro(i%ition. -inall3& it ruled t(at %et'een t(e denial of a la'3er and t(e certification of a *ost+aster& t(e latter 'ould *revail.

A2010 Avena
ISSUES 516 '(et(er *etitioner received t(e Order den3ing its ti+el3 filed !otion for <e' )rial$ 526 '(et(er t(e taAing of oral de*ositions 'as *ro*er under t(e circu+stances. HELD 3. N!. It is readil3 a**arent t(at *etitioner is raising factual issues t(at t(is Court does not revie'. A +otion for ne' trial +a3 %e filed on t(e grounds of 516 fraud& accident& +istaAe or e7cusa%le negligence t(at could not (ave %een guarded against %3 ordinar3 *rudence& and %3 reason of '(ic( t(e aggrieved *art32s rig(ts (ave *ro%a%l3 %een i+*aired$ or 526 ne'l3 discovered evidence t(at& 'it( reasona%le diligence& t(e aggrieved *art3 could not (ave discovered and *roduced at t(e trial$ and t(at& if *resented& 'ould *ro%a%l3 alter t(e result. In its O+ni%us !otion for <e' )rial& *etitioner argued t(at its counsel Att3. !ario 'as sicA& a fact t(at allegedl3 constituted e7cusa%le negligence for (is failure to a**ear at t(e August ?& 2000 *retrial. >it( regard to Att3. Rogelio -ernandeB& t(e colla%orating counsel& it alleged t(at t(e 8oard of Directors (ad ter+inated (is legal services on August 4& 2000. )(ese grounds relied u*on %3 *etitioner cannot *ro*erl3 secure a ne' trial. Counsels are not t(e onl3 ones re1uired to attend t(e *retrial. )(e a**earance of t(e *laintiff and t(e defendant is also +andator3. )(e *ertinent rule states@ Section 4. A**earance of *arties. It s(all %e t(e dut3 of t(e *arties and t(eir counsel to a**ear at t(e *re trial. )(e non a**earance of a *art3 +a3 %e e7cused onl3 if a valid cause is s(o'n t(erefore or if a re*resentative s(all a**ear in (is %e(alf full3 aut(oriBed in 'riting to enter into an a+ica%le settle+ent& to su%+it to alternative +odes of dis*ute resolution& and to enter into sti*ulations or ad+issions of facts and of docu+ents. )(e rationale for t(is re1uire+ent of co+*elling t(e *arties to a**ear *ersonall3 %efore t(e court is to e7(aust t(e *ossi%ilit3 of reac(ing a co+*ro+ise. >(ile notice of t(e *retrial is served on counsels& it is t(eir dut3 to notif3 t(e *art3 t(e3 re*resent. )(e e7*lanation offered %3 *etitioner as regards t(e a%sence of its counsel fro+ t(e *retrial is t(erefore unacce*ta%le. It s(ould (ave also 4ustified its o'n a%sence t(erefro+. ;aving failed to do so& it (ad no valid ground to re1uest a ne' trial. Petitioner also failed to 4ustif3 t(e a%sence of %ot( its counsels. Intil t(eir for+al 'it(dra'al is

Prof. Victoria A.

3B2

granted& la'3ers are dee+ed to %e t(e re*resentatives of t(eir clients. Att3. -ernandeB +a3 (ave %een notified of t(e ter+ination of (is services on August :& 2004. 8ut as far as t(e trial court 'as concerned& (e continued to %e *etitioner2s counsel of record& since no 'it(dra'al of a**earance (ad 3et %een granted. ;ence& (is a%sence fro+ t(e *retrial 'as still not e7cusa%le. >(ile (e could no longer re*resent *etitioner& (is *resence 'ould (ave afforded (i+ an o**ortunit3 to +aAe a for+al 'it(dra'al of a**earance. An i+*rovident ter+ination of legal services is not an e7cuse to 4ustif3 non a**earance at a *retrial. Ot(er'ise& t(e rules of *rocedure 'ould %e rendered +eaningless& as t(e3 'ould %e su%4ect to t(e counsel2s 'ill. )(e Pro*er Re+ed3 under t(e ne' Rules& t(e conse1uence of non a**earance 'it(out cause at t(e *retrial is not for t(e *etitioner to %e considered ,as in default&, %ut ,to allo' t(e *laintiff to *resent evidence e7 *arte and VforW t(e court to render 4udg+ent on t(e %asis t(ereof., )(is *rocedure 'as follo'ed in t(e instant case. )o t(e trial court2s order allo'ing t(e e7 *arte *resentation of evidence %3 t(e *laintiff& t(e defendant2s re+ed3 is a +otion for reconsideration. An affidavit of +erit is not re1uired to %e attac(ed to suc( +otion& %ecause t(e defense (as alread3 %een laid do'n in t(e ans'er. "i%eralit3 is t(e rule in considering a +otion for reconsideration. It is %est for t(e trial court to give %ot( t(e *laintiff and t(e defendant a c(ance to litigate t(eir causes fairl3 and o*enl3& 'it(out resort to tec(nicalit3. Inless t(e reo*ening of t(e case is clearl3 intended for dela3& courts s(ould %e li%eral in setting aside orders %arring defendants fro+ *resenting evidence. .udg+ents %ased on an e7 *arte *resentation of evidence are generall3 fro'ned u*on. In t(e *resent case& *etitioner did not file a +otion for reconsideration after t(e trial court (ad allo'ed res*ondents2 e7 *arte *resentation of evidence. )(e Rules of Court does not *ro(i%it t(e filing of a +otion for a ne' trial des*ite t(e availa%ilit3 of a +otion for reconsideration. 8ut t(e failure to file t(e latter +otion 'it(out due cause is a factor in deter+ining '(et(er to a**l3 t(e li%eralit3 rule in lifting an order t(at allo'ed t(e e7 *arte *resentation of evidence. In its +otions and *etitions filed 'it( t(is Court and t(e lo'er courts& *etitioner did not e7*lain '(3 it (ad failed to file a +otion for reconsideration.

Civil Procedure Digest

)(e la*se of ti+e fro+ t(e August ?& 2000 *retrial to t(e Se*te+%er 5& 2000 e7 *arte *resentation of evidence& and until t(e .une 1/& 2001 *ro+ulgation of t(e Decision s(o's t(e negligence of *etitioner and its counsels. Prior to t(e trial court2s resolution of t(e case& it (ad a+*le o**ortunit3 to c(allenge t(e Order allo'ing t(e e7 *arte *resentation of evidence. )oo late 'as t(e c(allenge t(at it +ade after t(e Decision (ad alread3 %een rendered. In addition to t(e foregoing facts& *etitioner fails to convince us t(at it (as not received t(e trial court2s Order den3ing its !otion for <e' )rial. )(ere is a dis*uta%le *resu+*tion t(at official duties (ave %een regularl3 *erfor+ed. On t(is %asis& 'e (ave ruled t(at t(e *ost+aster2s certification *revails over t(e +ere denial of a la'3er. )(is rule is a**lica%le (ere. Petitioner (as failed to esta%lis( its non recei*t of t(e trial court2s Order den3ing its !otion for <e' )rial. )(is Court notes t(e trial court2s finding t(at *etitioner received a co*3 of res*ondents2 Se*te+%er 24& 2001 !otion for #7ecution and <ove+%er 21& 2001 !otion for #arl3 Resolution& as 'ell as t(e trial court2s Se*te+%er 2?& 2001 Order su%+itting t(e !otion for #7ecution for resolution. =iven t(ese unre%utted facts& it is un%elieva%le t(at *etitioner did not Ano' t(at a ruling on t(e !otion for <e' )rial (ad alread3 %een issued. At t(e ver3 least& t(e !otions filed %3 res*ondents s(ould (ave alerted it of suc( issuance. Ot(er'ise& it could (ave o**osed t(eir !otion for #7ecution %3 re1uesting t(e R)C to resolve t(e !otion for <e' )rial$ or t(e trial court could (ave %een infor+ed %3 *etitioner of t(e latter2s non recei*t of t(e Order resolving res*ondents2 !otion. 9. N!. A de*osition +a3 %e taAen 'it( leave of court after 4urisdiction (as %een o%tained over an3 defendant or over *ro*ert3 t(at is t(e su%4ect of t(e action$ or& 'it(out suc( leave& after an ans'er (as %een served. De*osition is c(iefl3 a +ode of discover3& t(e *ri+ar3 function of '(ic( is to su**le+ent t(e *leadings for t(e *ur*ose of disclosing t(e real *oints of dis*ute %et'een t(e *arties and affording an ade1uate factual %asis during t(e *re*aration for trial. )(e li%ert3 of a *art3 to avail itself of t(is *rocedure& as an attri%ute of discover3& is ,'ell nig( unrestricted if t(e +atters in1uired into are ot(er'ise relevant and not *rivileged& and t(e in1uir3 is +ade in good fait( and 'it(in t(e %ounds of t(e la'., "i+itations 'ould arise& t(oug(& if t(e e7a+ination is conducted in %ad fait($ or in suc( a +anner as to

A2010 Avena
anno3& e+%arrass& or o**ress t(e *erson '(o is t(e su%4ect of t(e in1uir3$ or '(en t(e in1uir3 touc(es u*on t(e irrelevant or encroac(es u*on t(e recogniBed do+ains of *rivilege. As a +ode of discover3 resorted to %efore trial& de*osition (as advantages& as follo's@ 1. It is of great assistance in ascertaining t(e trut( and in c(ecAing and *reventing *er4ur3. 7 7 7 2. It is an effective +eans of detecting and e7*osing false& fraudulent& and s(a+ clai+s and defenses. 0. It +aAes availa%le in a si+*le& convenient& and often ine7*ensive 'a3 facts '(ic( ot(er'ise could not (ave %een *roved& e7ce*t 'it( great difficult3 and so+eti+es not at all. 4. It educates t(e *arties in advance of trial as to t(e real value of t(eir clai+s and defenses& t(ere%3 encouraging settle+ents out of court. 5. It e7*edites t(e dis*osal of litigation& saves t(e ti+e of t(e courts& and clears t(e docAet of +an3 cases %3 settle+ents and dis+issals '(ic( ot(er'ise 'ould (ave to %e tried. 9. It safeguards against sur*rise at t(e trial& *revents dela3s& and narro's and si+*lifies t(e issues to %e tried& t(ere%3 e7*editing t(e trial. :. It facilitates %ot( t(e *re*aration and t(e trial of cases. )(e Rules of Court and 4uris*rudence& (o'ever& do not restrict a de*osition to t(e sole function of %eing a +ode of discover3 %efore trial. Inder certain conditions and for certain li+ited *ur*oses& it +a3 %e taAen even after trial (as co++enced and +a3 %e used 'it(out t(e de*onent %eing actuall3 called to t(e 'itness stand. In Das+ariPas =ar+ents v. Re3es& 'e allo'ed t(e taAing of t(e 'itnesses2 testi+onies t(roug( de*osition& in lieu of t(eir actual *resence at t(e trial. )(us& ,VdWe*ositions +a3 %e taAen at an3 ti+e after t(e institution of an3 action& '(enever necessar3 or convenient. )(ere is no rule t(at li+its de*osition taAing onl3 to t(e *eriod of *re trial or %efore it$ no *ro(i%ition against t(e taAing of de*ositions after *re trial., )(ere can %e no valid o%4ection to allo'ing t(e+ during t(e *rocess of e7ecuting final and e7ecutor3 4udg+ents& '(en t(e +aterial issues of fact (ave %eco+e nu+erous or co+*licated. In Aee*ing 'it( t(e *rinci*le of *ro+oting t(e 4ust& s*eed3 and ine7*ensive dis*osition of ever3 action and *roceeding& de*ositions are allo'ed as a ,de*arture fro+ t(e acce*ted and usual 4udicial *roceedings of e7a+ining 'itnesses in o*en court '(ere t(eir de+eanor could %e o%served %3 t(e trial 4udge., De*ositions are allo'ed& *rovided t(e3 are taAen in accordance 'it( t(e *rovisions of t(e Rules

Prof. Victoria A.

3B;

of Court 5t(at is& 'it( leave of court if t(e su++ons (ave %een served& 'it(out leave of court if an ans'er (as %een su%+itted6$ and *rovided& furt(er& t(at a circu+stance for t(eir ad+issi%ilit3 e7ists 5Section 4& Rule 20& Rules of Court6. )(e Rules of Court vests in t(e trial court t(e discretion to order '(et(er a de*osition +a3 %e taAen or not under s*ecified circu+stances t(at +a3 even differ fro+ t(ose t(e *ro*onents (ave intended. ;o'ever& it is 'ell settled t(at t(is discretion is not unli+ited. It +ust %e e7ercised not ar%itraril3& ca*riciousl3 or o**ressivel3 %ut in a reasona%le +anner and in consonance 'it( t(e s*irit of t(e la'& to t(e end t(at its *ur*ose +a3 %e attained. >(en a de*osition does not confor+ to t(e essential re1uire+ents of la' and +a3 reasona%l3 cause +aterial in4ur3 to t(e adverse *art3& its taAing s(ould not %e allo'ed. )(e Rules of Court *rovides ade1uate safeguards to ensure t(e relia%ilit3 of de*ositions. )(e rig(t to o%4ect to t(eir ad+issi%ilit3 is retained %3 t(e *arties& for t(e sa+e reasons as t(ose for e7cluding evidence if t(e 'itness 'ere *resent and (ad testified in court$ and for errors and irregularities in t(e de*osition. As a rule& de*ositions s(ould %e allo'ed& a%sent an3 s(o'ing t(at taAing t(e+ 'ould *re4udice an3 *art3. De*ositions +a3 %e used for t(e trial or for t(e (earing of a +otion or an interlocutor3 *roceeding& under t(e circu+stances s*ecified (ereunder@ Section 4. Ise of De*ositions. At t(e trial or u*on t(e (earing of a +otion or an interlocutor3 *roceeding& an3 *art or all of a de*osition& so far as ad+issi%le under t(e rules of evidence& +a3 %e used against an3 *art3 '(o 'as *resent or re*resented at t(e taAing of t(e de*osition or '(o (ad due notice t(ereof& in accordance 'it( an3 one of t(e follo'ing *rovisions@ 5a6An3 de*osition +a3 %e used %3 an3 *art3 for t(e *ur*ose of contradicting or i+*eac(ing t(e testi+on3 of de*onent as a 'itness$ 5%6)(e de*osition of a *art3 or of an3one '(o at t(e ti+e of taAing t(e de*osition 'as an officer& director& or +anaging agent of a *u%lic or *rivate cor*oration& *artners(i*& or association '(ic( is a *art3 +a3 %e used %3 an adverse *art3 for an3 *ur*ose$ 5c6 )(e de*osition of a 'itness& '(et(er or not a *art3& +a3 %e used %3 an3 *art3 for an3 *ur*ose if t(e court finds@ 516 t(at t(e 'itness is dead$ or 526 t(at t(e 'itness resides at a distance +ore t(an one (undred 51006 Ailo+eters fro+ t(e *lace of trial or (earing& or is out of t(e P(ili**ines& unless it a**ears t(at (is

Civil Procedure Digest

a%sence 'as *rocured %3 t(e *art3 offering t(e de*osition$ or 506 t(at t(e 'itness is una%le to attend or testif3 %ecause of age& sicAness& infir+it3& or i+*rison+ent$ or 546 t(at t(e *art3 offering t(e de*osition (as %een una%le to *rocure t(e attendance of t(e 'itness %3 su%*oena$ or 556 u*on a**lication and notice& t(at suc( e7ce*tional circu+stances e7ist as to +aAe it desira%le& in t(e interest of 4ustice and 'it( due regard to t(e i+*ortance of *resenting t(e testi+on3 of 'itnesses orall3 in o*en court& to allo' t(e de*osition to %e used$ and 5d6 If onl3 *art of a de*osition is offered in evidence %3 a *art3& t(e adverse *art3 +a3 re1uire (i+ to introduce all of it '(ic( is relevant to t(e *art introduced& and an3 *art3 +a3 introduce an3 ot(er *arts. )(e *resent case involved a circu+stance t(at fell under t(e a%ove cited Section 45c6526 of Rule 20 t(e 'itnesses of *etitioner in !etro !anila resided %e3ond 100 Ailo+eters fro+ Sultan Tudarat& t(e *lace of (earing. Petitioner offered t(e de*ositions in su**ort of its !otion to Huas( 5t(e >rit of #7ecution6 and for t(e *ur*ose of *roving t(at t(e trial court2s Decision 'as not 3et final. As *reviousl3 e7*lained& des*ite t(e fact t(at trial (as alread3 %een ter+inated& a de*osition can still %e *ro*erl3 taAen. >e note& (o'ever& t(at t(e R)C did not totall3 disregard *etitioner2s de*ositions. In its -e%ruar3 21& 2001 Resolution& t(e trial court considered and 'eig(ed against all ot(er evidence t(at its Order den3ing t(e !otion for <e' )rial filed %3 *etitioner (ad not %een received %3 t(e latter2s counsels. Des*ite t(eir de*ositions& *etitioner failed to *rove convincingl3 its denial of recei*t. Disposition. >;#R#-OR#& t(e Petition is D#<I#D& and t(e assailed Decision and Resolution A--IR!#D. Costs against *etitioner. SO ORD#R#D.

A2010 Avena
8a3%a3 5*laintiffs *etitioners6 against Verano and ;inunangan 5defendants res*ondents6. It cul+inated in a 4udg+ent %3 co+*ro+ise. In t(e Co+*ro+ise Agree+ent& ;inunangan granted a 2 +eter 'ide rig(t of 'a3 in favor of Paredes for a consideration of P9T. Alleging t(at *etitioners (ad %locAed t(e *assage 'a3 in violation of t(e Co+*ro+ise Agree+ent& res*ondents filed a co+*laint for s*ecific *erfor+ance 'it( da+ages against *etitioners. Petitioners ans'ered& denied (aving violated t(e Co+*ro+ise Agree+ent. )(e3 alleged t(at liAe t(e+& res*ondents 'ere not actual residents of 8rg3 )agni*a '(ere t(e ,road rig(t of 'a3, 'as esta%lis(ed and t(at res*ondent ;inunangan (ad alread3 sold (is onl3 re+aining lot in t(e vicinit3 to *etitioner Paredes Petitioners ne7t filed !)D for lacA of cause of action& '(ic( 'as denied %3 R)C. Petitioners elevated case to CA and SC %ut to no avail. Petitioners asAed .udge Ta*ili to in(i%it (i+self fro+ t(e case. )(e 4udge denied t(e +otion Pre trial 'as initiall3 set and reset and reset again. In t(e *re trial& 8a3%a3Ds counsel +oved to reset it to anot(er date on account of a conflicting (earing. ;o'ever& *etitioner 8a3%a3& '(o is t(e fat(er of t(e counsel for *etitioners& 'as *resent in court along 'it( t(e ot(er defendants. R)C 'as infor+ed of a *ro*osed settle+ent %et'een t(e *arties& alt(oug( res*ondent 8a3%a3 1ualified (is reaction %3 telling t(e court t(at (e 'ould first (ave to infor+ (is la'3er and t(e co defendants of t(e said *ro*osal. )(e R)C t(en co++ented unfavora%l3 on t(e a%sence of *etitionersD counsel& e7*ressing disa**oint+ent to'ards (is attitude& even +aAing note of t(e fact t(at not once (ad t(e counsel a**eared %efore t(e R)C& even t(oug( t(e case (ad alread3 reac(ed SC over t(e denial of !)D. R)C again reset t(e *re trial date. 8efore t(e ne' *re trial date& counsel for *etitioners filed a 2anifestation of 6illingness to Settle 6ith Ae,uest for Cancellation. A*art fro+ +anifesting (is 'illingness to settle t(e co+*laint& *etitionersD counsel suggested to t(e o**osing counsel t(at (e %e infor+ed of t(e ter+s of t(e *ro*osed settle+ent. So& *etitionersD counsel re1uested t(e cancellation of t(e 20 .an 2004 (earing. 8ut t(e (earing *us(ed t(roug( on 20 .an 2004. Private res*ondents and t(eir counsel 'ere *resent. So 'ere 8a3%a3 and Paredes& and co defendant Alago& %ut not t(eir counsel. )(e R)C allo'ed

Prof. Victoria A.

3B>

res*ondents to *resent t(eir evidence e% parte& ,for failure of t(e defendants2 counsel to a**ear %efore R)C. Petitioners filed !-R& %ut 'as denied So& *etitioners filed a *etition for certiorari 'it( CA. CA dis+issed it for failure to attac( du*licate original co*ies of t(e anne7es to t(e *etition ot(er t(an t(e R)C Orders and for failure to su%+it suc( ot(er *leadings relevant and *ertinent to t(e *etition. Petitioners filed !-R 'it( !otion to Ad+it Additional #7(i%its& adverting to t(e docu+ents *reviousl3 +issing fro+ t(e *etition %ut attac(ed to t(e +otion. !-R dis+issed. CA resolved on t(e +erits& ruling t(at under Sec 5& Rule 1? ROC& it is t(e failure of t(e defendant& and not defendantDs counsel& to a**ear at t(e *re trial t(at 'ould serve cause to allo' *laintiff to *resent evidence e% parte. CA noted t(at 8a3%a3 (ad +ade it clear t(at (e 'ould never enter into an3 a+ica%le settle+ent 'it(out t(e advice of (is counsel. CA cited Sps. Ampelo,uio# Sr. v. CA '(ere t(e Court (eld t(at if ever3 error co++itted %3 R)C 'ere to %e a *ro*er o%4ect of revie' %3 certiorari& t(en trial 'ould never co+e to an end and t(e a**ellate court docAets 'ould %e clogged 'it( *etitions c(allenging ever3 interlocutor3 order of t(e )C. It concluded t(at t(e acts of .udge Ta*ili did not constitute grave a%use of discretion e1uivalent to lacA of 4urisdiction. ISSUE >O< t(e a%sence of t(e counsel for defendants at t(e *re trial& 'it( all defendants t(e+selves *resent& is a ground to declare defendants in default and to aut(oriBe *laintiffs to *resent evidence e% parte. HELD <O Ratio )(e a%sence of counsel for defendants at *re trial does not ipso facto aut(oriBe t(e 4udge to declare t(e defendant as in default and order t(e *resentation of evidence e% parte. It %ears stressing t(at not(ing in t(e Rules of Court sanctions t(e *resentation of evidence e% parte u*on instances '(en counsel for defendant is a%sent during *re trial. )(e Rules do not countenance stringent construction at t(e e7*ense of 4ustice and e1uit3 Reasoning )(e order of R)C allo'ing res*ondents to *resent evidence e% parte 'as undou%tedl3 to t(e detri+ent of *etitioners. Since t(e R)C 'ould onl3 consider t(e evidence *resented %3 res*ondents& and not t(at of *etitioners& t(e order striAes at t(e (eart of t(e case& disallo'ing as it does an3 +eaningful defense

PAREDES V VERANO =.R. <o.1940:5 )I<=A$ Octo%er 12& 2009

NATURE Petition for revie' FACTS A co+*laint for t(e esta%lis(+ent of a rig(t of 'a3 'as filed at R)C !aasin %3 Paredes& Alago and

Civil Procedure Digest

*etitioners could (ave *osed. A 4udg+ent of default against a defendant '(o failed to attend *re trial& or even an3 defendant '(o failed to file an ans'er& i+*lies a 'aiver onl3 of t(eir rig(t to %e (eard and to *resent evidence to su**ort t(eir allegations %ut not all t(eir ot(er rig(ts. <ot(ing in t(e ROC aut(oriBes a trial 4udge to allo' t(e *laintiff to *resent evidence e% parte on account of t(e a%sence during *re trial of t(e counsel for defendant. In Rule 1?& Sect. 4 i+*oses t(e dut3 on litigating *arties and t(eir res*ective counsel during *re trial. )(e *rovision also *rovides for t(e instances '(ere t(e non a**earance of a *art3 +a3 %e e7cused. <ot(ing& (o'ever& in Sec. 4 *rovides for a sanction s(ould t(e *arties or t(eir res*ective counsel %e a%sent during *re trial. Instead& t(e *enalt3 is *rovided for in Sec. 5. <ota%l3& '(at Section 5 *enaliBes is t(e failure to a**ear of eit(er t(e *laintiff or t(e defendant& and not t(eir res*ective counsel. )(e Court also cited cases and discussed '(3 alt(oug( t(e3 (ave si+ilar facts are ina**lica%le or do not constitute a *recedent to t(e instant case. )(ese cases are@ BCP@ v. 2agpa!# *onathan -andoil 4nternational Co. v. 2angudadat# SSS v. Chaves# Africa v. 4AC. =See original> Due *rocess dictates t(at *etitioners %e de*rived of t(eir rig(t to %e (eard and to *resent evidence to su**ort t(eir allegations if& and onl3 if& t(ere e7ists sufficient %asis in fact and in la' to do so. )(ere %eing a +anifest lacA of suc( %asis in t(is case& *etitioners 'ould %e un4ustl3 denied of t(e o**ortunit3 to full3 defend t(e+selves s(ould t(e Court affir+ t(e 1uestioned orders '(ic( 'ere evidentl3 issued %3 t(e R)C 'it( grave a%use of discretion. )(e %etter and certainl3 +ore *rudent course of action in ever3 4udicial *roceeding is to (ear %ot( sides and decide on t(e +erits rat(er t(an dis*ose of a case on tec(nicalities >(ile counsel is so+e'(at to %la+e for (is non attendance at *re trial& incidentall3 t(e o*erative act '(ic( gave %irt( to t(e controvers3 at %ar& it 'ould %e +ost unfair to *enaliBe *etitioners for '(at +a3 %e t(e deficienc3 of t(eir la'3er '(en t(e conse1uent *enalt3 (as no %asis in la'. Disposition Petition is granted. R)C and CA rulings reversed.

A2010 Avena
%. c!n#!*i)% e)0 #ep%"% e "i%* SPS. YU V MA/NO CONSTRUCTION /.R. N!. 31;2B3-B9 /ARCIA= Oc !7e" 32, 9BB5
NATURE Petition for revie' on certiorari FACTS )(e s*ouses Ro1ue Cu& Sr. and Asuncion Cu are t(e controlling stocA(olders of "e3te "u+%er. During (is lifeti+e& #ngr. 8asilio =. !agno entered into a ver%al agree+ent 'it( "e3te "u+%er t(roug( Ro1ue Cu& Sr.& '(ere%3 t(e latter agreed to su**l3 !agno 'it( %uilding +aterials (e +a3 need in (is construction %usiness. )(e success of !agnoDs %usiness gave %irt( to t(e 8asilio =. !agno Construction and Develo*+ent #nter*rises& Inc. O'ing to t(is fruitful relations(i*& t(e t'o 5Ro1ue Cu& Sr. and !agno6 entered into a 4oint venture& t(e =reat Pacific Construction Co+*an3 5=R#PAC6& 'it( Cu as President and !agno as Vice President. )(e relations(i* %et'een Cu and !agno %egan in 1/:5 and continued until !agnoDs deat( on August 21& 1/:?. On .anuar3 00& 1/:/& in t(e R)C of )aclo%an Cit3& t(e *etitioners instituted t'o se*arate co+*laints for su+s of +one3 'it( da+ages and *reli+inar3 attac(+ent against t(e res*ondents. One 'as Civil Case <o. 5?22& raffled to 8ranc( ? of t(e court& instituted %3 "e3te "u+%er against 8= !agno and t(e #state of 8asilio !agno& to collect on t(e *rinci*al a+ount of P1&2:0&104.?: for construction +aterials clai+ed to (ave %een o%tained on credit %3 8= !agno& and t(e ot(er 'as Civil Case <o. 5?20& raffled to 8ranc( 9& filed %3 t(e Cu s*ouses against 8= !agno and t(e #state of 8asilio !agno& to collect u*on loans and advances 5P0&5:5&000.006 allegedl3 +ade %3 t(e s*ouses to 8= !agno. On .une 1:& 1//0 t(e court rendered its decision i favor of t(e defendant on %ot( cases. )(e t'o se*arate decisions of even date 'ere *enned %3 .udge =etulio !. -rancisco& t(e *residing 4udge of 8ranc( 9 to '(ic( onl3 Civil Case <o. 5?20 'as raffled. )(e *arties did not +ove for a reconsideration of t(e t'o decisions nor did t(e3 call t(e attention of .udge -rancisco on t(e a%sence of an order for consolidation of t(e t'o cases. Instead&

Prof. Victoria A.

33B

t(e3 directl3 inter*osed t(eir res*ective a**eals to t(e CA. In t(e CA& t(e t'o cases on a**eal 'ere consolidated. In Civil Case <o. 5?22& t(e a**ealed decision is !ODI-I#D %3 declaring t(at defendant 8.=. !agno Construction and Develo*+ent #nter*rises& Inc.& +ade an over*a3+ent in t(e a+ount of P901&205.91& instead of P920&20/.91 and ordering *laintiff to return said a+ount to defendant& 'it( interest of 12J *er annu+ fro+ *ro+ulgation (ereof until full3 *aid& and %3 D#"#)I<= t(e a'ard of e7e+*lar3 da+ages in t(e su+ of P200&000.00 in favor of defendan. In Civil Case <o. 5?20& t(e a**ealed decision is R#V#RS#D and S#) ASID#. Accordingl3& defendant 8.=. !agno Construction and Develo*+ent #nter*rises& Inc. is ordered to *a3 *laintiffs t(e su+ of P925&000.00& 'it( 12J interest *er annu+ fro+ *ro+ulgation (ereof until full3 *aid& and t(e furt(er su+ of P50&000.00 %3 'a3 of attorne3Ds fees& *lus costs of suit. ISSUE >O< 8ranc( 9 (ad 4urisdiction to decide Civil Case <o. 5?22 *ending in 8ranc( ? in t(e a%sence of a +otion or order of consolidation of t(e t'o cases HELD C#S )(ere 'as not(ing irregular in t(e *rocedure taAen. )(e records s(o' t(at t(ere a**ears to (ave %een a *revious agree+ent to eit(er transfer or consolidate t(e t'o cases for decision %3 t(e *residing 4udge of 8ranc( 9. Indeed& '(en t(e res*ondents filed a !otion to "ift& Dissolve and Huas( t(e >rits of Attac(+ent 'it( 8ranc( 9 on .anuar3 20& 1//0& t(e ca*tion t(ereof indicated t(e docAet nu+%ers of %ot( cases. "iAe'ise& on Octo%er 2/& 1//0& '(en t(e *etitionersD ne' counsel entered (is -or+al A**earance& in t(e ca*tion t(ereof 'as also 'ritten t(e docAet nu+%ers of %ot( cases. PetitionersD *revious counsel of longstanding 5'(ose re*resentation dates %acA to t(e filing of t(e t'o co+*laints in 1/:/6 filed (is !otion to >it(dra' as Counsel on Octo%er 00& 1//0& and t(e ca*tion t(ereof si+ilarl3 indicated t(e docAet nu+%ers of %ot( cases. Su%se1uent orders of t(e court '(ic( e+anated fro+ 8ranc( 9 also %ear& in t(e ca*tion t(ereof& t(e titles and docAet nu+%ers of %ot( cases. In ot(er 'ords& as earl3 as si7 +ont(s *rior to t(e *ro+ulgation of .udge -rancisco2s decisions in t(e t'o cases& t(ere a**ears to (ave

COURSE OF TRIAL 3. "i%* p"!pe" 9. 8in)# !& "i%*

Civil Procedure Digest

%een a transfer or consolidation of said cases in 8ranc( 9 and t(e *arties Ane' of it& al%eit t(e actual date '(en t(e t'o cases 'ere consolidated or transferred does not a**ear on record. <onet(eless& t(e fact re+ains t(at no o**osition or o%4ection in an3 +anner 'as registered %3 eit(er of t(e *arties to t(e sa+e& t(ere%3 evincing t(eir consent t(ereto. It is& t(erefore& alread3 too late in t(e da3 for t(e *etitioners to 1uestion t(e co+*etence of .udge -rancisco to render t(e se*arate decisions in t(e t'o cases. Petitioners +a3 not no' 1uestion t(e transfer or consolidation of t(e t'o cases on a**eal& for t(e3 Ane' of it and did not 1uestion t(e sa+e in t(e court %elo'. )(e3 +a3 not no' +aAe a total turn around and ado*t a contrar3 stance$ +ore so '(en t(e 4udg+ent issued is adverse to t(eir cause. )(e ne7t logical 1uestions are@ Is t(e consolidation of t(e t'o cases 5Civil Case <os. 5?22 and 5?206 a *rocedural ste* '(ic( t(e court a 1uo could (ave *ro*erl3 taAenQ Is it a re+ed3 availa%le 'it(in t(e conte7t of t(e surrounding circu+stancesQ >e ans'er %ot( 1uestions in t(e affir+ative. )(e t'o cases 'ere filed 4ust a fe' +ont(s a*art$ t(e3 involve si+*le cases of collection of su+s of +one3 %et'een identical *arties and no ot(er$ t(e res*ondents 5as defendants t(erein6 clai+& in %ot( cases& essentiall3 t(e sa+e defense& '(ic( is over*a3+ent$ t(e3 cover t(e sa+e *eriod of transacting continuous %usiness t(at s*ans four 3ears$ t(e3 relate to si+*le issues of fact t(at are inti+atel3 related to eac( ot(er$ t(e3 entailed t(e *resentation of *racticall3 identical evidence and 'itnesses$ in fact& a %road *art of t(e evidence and testi+onies in one case 'as totall3 ado*ted or re*roduced in t(e ot(er %3 eit(er or %ot( *arties. And t(e trial court& %eing +ulti sala courts& its 8ranc(es 9 and ? *ossessed 4urisdiction to tr3 eit(er or %ot( cases on t(eir o'n. A court +a3 order several actions *ending %efore it to %e tried toget(er '(ere t(e3 arise fro+ t(e sa+e act& event or transaction& involve t(e sa+e or liAe issues& and de*end largel3 or su%stantiall3 on t(e sa+e evidence& *rovided t(at t(e court (as 4urisdiction over t(e case to %e consolidated and t(at a 4oint trial 'ill not give one *art3 an undue advantage or *re4udice t(e su%stantial rig(ts of an3 of t(e *arties 5citing 1 C.S& 104:6. Consolidation of actions is e7*ressl3 aut(oriBed under Section 1& Rule 01 of t(e Rules of Court@ FSection 1. Consolidation. G >(en actions involving a co++on 1uestion of la' or fact are

A2010 Avena
*ending %efore t(e court& it +a3 order a 4oint (earing or trial of an3 or all t(e +atters in issue in t(e actions$ it +a3 order all t(e actions consolidated$ and it +a3 +aAe suc( orders concerning *roceedings t(erein as +a3 tend to avoid unnecessar3 costs or dela3.L )(e o%vious *ur*ose of t(e a%ove rule is to avoid +ulti*licit3 of suits& to guard against o**ression and a%use& to *revent dela3s& to clear congested docAets& to si+*lif3 t(e 'orA of t(e trial court$ in s(ort t(e attain+ent of 4ustice 'it( t(e least e7*ense and ve7ation to t(e *arties litigants 5citing 1 C.S 1042 10406. Consolidation of actions is addressed to t(e sound discretion of t(e court& and its action in consolidating 'ill not %e distur%ed in t(e a%sence of +anifest a%use of discretion. In t(e instant case& res*ondent 4udge did not a%use (is discretion in ordering t(e 4oint trial of t(e t'o cases. )(ere is no s(o'ing t(at suc( 4oint trial 'ould *re4udice an3 su%stantial rig(t of *etitioner. <eit(er does t(e latter 1uestion t(e courtDs 4urisdiction to tr3 and decide t(e t'o cases. )(e ordered consolidation of cases& to our +ind& cr3stalliBes into realit3 t(e t(inAing of our *redecessors t(at@ ,. . . )(e '(ole *ur*ose and o%4ect of *rocedure is to +aAe t(e *o'ers of t(e court full3 and co+*letel3 availa%le for 4ustice. )(e +ost *erfect *rocedure t(at can %e devised is t(at '(ic( gives o**ortunit3 for t(e +ost co+*lete and *erfect e7ercise of t(e *o'ers of t(e court 'it(in t(e li+itations set %3 natural 4ustice. It is t(at one '(ic(& in ot(er 'ords& gives t(e +ost *erfect o**ortunit3 for t(e *o'ers of t(e court to trans+ute t(e+selves into concrete acts of 4ustice %et'een t(e *arties %efore it. )(e *ur*ose of suc( a *rocedure is not to restrict t(e 4urisdiction of t(e court over t(e su%4ect +atter& %ut to give it effective facilit3 in rig(teous action. It +a3 %e said in *assing t(at t(e +ost salient o%4ection '(ic( can %e urged against *rocedure toda3 is t(at it so restricts t(e e7ercise of t(e courtDs *o'ers %3 tec(nicalities t(at *art of its aut(orit3 effective for 4ustice %et'een t(e *arties is +an3 ti+es an inconsidera%le *ortion of t(e '(ole. )(e *ur*ose of *rocedure is not to t('art 4ustice. Its *ro*er ai+ is to facilitate t(e a**lication of 4ustice to t(e rival clai+s of contending *arties. It 'as created not to (inder and dela3 %ut to facilitate and *ro+ote t(e ad+inistration of 4ustice. It does not constitute t(e t(ing itself '(ic( courts are al'a3s striving to secure to litigants. It is designed as

Prof. Victoria A.

333

t(e +eans %est ada*ted to o%tain t(at t(ing. In ot(er 'ords& it is a +eans to an end. It is t(e +eans %3 '(ic( t(e *o'ers of t(e court are +ade effective in 4ust 4udg+ents. >(en it loses t(e c(aracter of t(e one and taAes on t(at of t(e ot(er t(e ad+inistration of 4ustice %eco+es inco+*lete and unsatisfactor3 and la3s itself o*en to grave criticis+., Disposition .udg+ent is (ere%3 rendered !ODI-CI<= t(e assailed CA decision %3 setting aside and deleting t(e a'ard of t(e res*ondents2 counterclai+ in t(e a+ount of P142&?1:.2: in Civil Case <o. 5?22$ reiterating t(e P50&000.00 a'ard of attorne3s2 fees and litigation e7*enses in favor of t(e res*ondents in Civil Case <o. 5?22$ and deleting t(e a'ard of attorne3s2 fees to t(e *etitioners in Civil Case <o. 5?20. In all ot(er res*ects& t(e assailed decision is A--IR!#D.

7. "i%* 7( c!DDi##i!ne"# AN/ARA ' FEDMAN /.R. NO. 345;99 AUSTRIA-MARTINEZ= Oc !7e" 3;, 9BB:
<A)IR#@ !otion for Reconsideration -AC)S@ On -e%ruar3 ?& 1//9& res*ondent filed a co+*laint for Accion Reinvindicatoria andEor Huieting of )itle against *etitioner %efore t(e Regional )rial Court& <asug%u& 8atangas & clai+ing to %e t(e rig(tful o'ners of t(e land currentl3 occu*ied %3 *etitioner. )(e3 even conducted a relocation surve3. *etitoner on t(e ot(er (and clai+ed t(at (e is t(e la'ful o'ner$ t(e said *arcels of land do not encroac( on res*ondentDs *ro*ert3$ and assu+ing t(at t(ere is suc( an encroac(+ent& (e nevert(eless (ad ac1uired title t(ereto %3 virtue of ac1uisitive *rescri*tion R)C ordered t(e constitution of co++ittee of t(ree surve3ors co+*osed of geodetic engineers re*resenting t(e *etitioner& res*ondent and t(e D#<R On .une 22& 2000& t(e R)C issued su%*oena ad testificandu+ to t(e t(ree =eodetic #ngineers '(o co+*osed t(e 8oard of Co++issioners to testif3 in

Civil Procedure Digest

connection 'it( t(eir individual re*orts. )(e R)C also re+inded res*ondent t(at t(e case 'as filed as earl3 as -e%ruar3 ?& 1//9& t(e *re trial 'as conducted on .anuar3 20& 1/// and since t(en res*ondent (as not even co++enced *resenting its evidence on t(e +erits. On Se*te+%er 2:& 2000& t(e R)C ordered t(e dis+issal of t(e case due to t(e failure of t(e res*ondent to *rosecute its case for an unreasona%le lengt( of ti+e. ;o'ever& u*on res*ondentDs +otion for reconsideration& t(e R)C reconsidered t(e order of dis+issal. *etitioner filed an O+ni%us !otion *ra3ing t(at 4udg+ent %e rendered on t(e %asis of t(e co++issionersD re*ort and& alternativel3& all ot(er *ersons '(o 'ill %e adversel3 affected %3 t(e relocation surve3 %e i+*leaded as *arties R)C denied t(e said O+ni%us !otion. )(e R)C (eld t(at according to res*ondent t(ere 'as no 4oint surve3 conducted %3 t(e co++issioners as ordered %3 it and as agreed u*on %3 t(e *arties& (ence t(e re*ort of t(e co++issioners cannot %e t(e %asis of t(e 4udg+ent& *etitioner filed a +otion for reconsideration '(ic( 'as re4ected %3 t(e R)C. Petitioner t(en filed a *etition for certiorari 'it( t(e CA. t(is too 'as re4ected. Petitoner filed a *etition for certiorari 'it( t(e SC. Court denied t(e *etition for revie' on certiorari for failure to sufficientl3 s(o' t(at t(e CA co++itted an3 reversi%le error. ;ence& t(e *resent !otion for Reconsideration ISSI#@ >O< CA erred in re4ecting t(e a**eal ;#"D@ no. According to *etitioner& t(is is a ,si+*le case of an alleged Dencroac(+entD or Doverla**ingD of *ro*ert3 %oundaries., Considering t(at t(e issue involves *rinci*all3 a factual and tec(nical +atter for '(ic( t(e R)C& at t(e instance of t(e *arties& created a Panel of Co++issioners (as done its 4o% and t(e c(air+an su%+itted (is re*ort on t(e %asis of (is evaluation of t(e se*arate surve3s conducted %3 t(e +e+%ers. )(e R)C& (o'ever& si+*l3 ignored t(e re*ort on t(e tec(nical and la+e e7cuse t(at t(e Panel of Co++issioners did not conduct a ,4oint surve3., *etitioner su%+its t(at t(e R)C cannot si+*l3 ignore t(e co++issionersD re*ort 'it(out considering its +erits si+*l3 %ecause t(e *arties agreed t(at t(e sa+e is not final and %inding. Petitioner argues t(at t(e R)C s(ould (ave considered t(e +erits of t(e re*ort and acted on its reco++endation instead of re4ecting it outrig(t 'it(out an3 cause or reason. As

A2010 Avena
to t(e insistence of res*ondent t(at t(e R)C ordered a ,4oint surve3,& *etitioner su%+its t(at t(ere is not(ing in t(e order of t(e R)C defining or s*ecif3ing '(at a ,4oint, surve3 is. Petitioner reiterates (is argu+ents in t(e *etition t(at a 4oint surve3& as understood %3 res*ondent& '(erein t(e co++issioners literall3 go out toget(er& conduct a surve3 in t(e *resence of one anot(er& and *re*are one re*ort& could not (ave %een conte+*lated %3 t(e R)C since t(e co++issioners no+inated %3 t(e *arties insisted on t'o different +et(ods or a**roac(es for t(e surve3. A %attle of se+antics is *rinci*all3 %eing 'aged %efore t(is Court. Petitioner argues t(at undue e+*(asis 'as *laced on t(e 'ords ,4oint relocation surve3& '(ic( literall3 +eans one t(at is conducted *(3sicall3 toget(er or in t(e *resence of one anot(er., )(e order constituting t(e *anel of co++issioners& (o'ever& does not define '(at a 4oint relocation surve3 entails nor does it la3 out t(e ste*s or *rocedures in conducting t(e sa+e. Petitioner su%+its t(at t(e ter+ ,4oint surve3, does not rule out a surve3 t(at is coordinated and linAed toget(er resulting in a 4oint finding and reco++endation. On t(e ot(er (and& res*ondent su%scri%es to t(e *ronounce+ent of t(e R)C t(at t(e record is re*lete 'it( e7*licit +otion and orders of t(e court calling for 4oint surve3. Rissue of certiorari 5i+*ortant to note6 It +ust %e e+*(asiBed t(at t(e *etition %efore t(e CA is a s*ecial civil action for certiorari under Rule 95 of t(e Rules of Court. Certiorari under Rule 95 is a re+ed3 narro' in sco*e and infle7i%le in c(aracter. It can %e invoAed onl3 for an error of 4urisdiction& t(at is& one '(ere t(e act co+*lained of 'as issued %3 t(e court& 'it(out or in e7cess of 4urisdiction& or 'it( grave a%use of discretion '(ic( is tanta+ount to lacA or in e7cess of 4urisdiction. In t(is case& t(e assailed orders of t(e R)C are %ut resolutions on incidental +atters '(ic( do not touc( on t(e +erits of t(e case or *ut an end to t(e *roceedings. )(e3 are interlocutor3 orders since t(ere leaves so+et(ing else to %e done %3 t(e R)C 'it( res*ect to t(e +erits of t(e case. Conse1uentl3& t(e Court is *er*le7ed t(at& in resolving t(e *etition %efore it& t(e Court of A**eals c(ose to delve into t(e 'isdo+ and soundness of t(e orders of t(e R)C& overlooAing t(e nature of t(e *etition %efore it. )(e su*ervisor3 4urisdiction of t(e court to issue a certiorari 'rit cannot %e e7ercised in order to revie' t(e 4udg+ent of t(e lo'er court as to its intrinsic

Prof. Victoria A.

339

correctness& eit(er u*on t(e la' or t(e facts of t(e case .Petitioner failed to demonstrate his claim that the A+C acted $ith grave a use of discretion amounting to lac' or in e%cess of its jurisdiction in den!ing petitionerCs pra!er for rendition of judgment ased on the commissionersC report. +he Aules of Court clearl! provides that the trial court is not ound ! the findings of the commissioners or precluded from disregarding the same. 4t ma! adopt# modif!# reject the report or recommit it $ith instructions# or re,uire the parties to present further evidence

1. inci)en #0 p"!ce##e# %. c%*en)%" !& c%#e# 7. in e"'en i!n HOLIDAY INN V SANDI/ANBAYAN 3;5 SCRA ::2 MEDIALDEA? J,ne ;, 3>>B
NATURE? Petition for revie' on certiorari 5treated as a s*ecial civil action for certiorari6 FACTS? On .anuar3 1& 1/:9& ;olida3 Inn& Inc. 5;II6 entered into a +anage+ent contract 'it( <e' Riviera ;otel and Develo*+ent Co.& Inc. 5<R;DC6 for a *eriod of ten 5106 3ears. Article 1? of said agree+ent sti*ulates@
AA+4C-E 1J A4/G+ 05 54AS+ AE5BSA4f 0$ner# at an! time or times during the term hereof# shall receive a ona fide offer from a third part! accepta le to 0$ner# or $hich 0$ner does not promptl! reject# to purchase the Premises or an! part thereof# or the usiness conducted in connection there$ith# or in the uildings# e,uipment# or furnishings used in connection there$ith# or an! interest in 0$ner =$hether a partnership# or corporation or other$ise># 0$ner shall deliver to 2anager an e%ecuted original cop! of such offer and agrees concurrentl! there$ith to deliver to 2anager an financial information =including ut not limited to# certified alance sheets and operating statements> involved and such# other information as ma! e reasona l! re,uested ! 2anager. 2anager ma!# $ithin t$ent! one =21> da!s of its receipt of such offer and said financial data# at its portion# purchase said interest of said 0$ner on the terms of said offer.

Civil Procedure Digest

On .anuar3 1& 1/:9& <R;DC and ;II assigned all t(eir rig(ts under t(e a%ove +entioned agree+ent to *etitioner ;olida3 Inn 5P(ils.6& Inc. 5;IP6 On A*ril 22& 1/?9& <R;DC 'as se1uestered %3 t(e PC== '(ic( su%se1uentl3 a**ointed fiscal agents andEor *laced an o*erating tea+ to +onitor t(e activities of said cor*oration. 8ecause of nu+erous controversies and conflicts resulting in o*erational *ro%le+s regarding <R;DC& PC== and Ro%erto S. 8enedicto& '(o is *erceived to %e t(e controlling stocA(older of t(e co+*an3& entered into an agree+ent '(ere%3 2E0 of t(e +e+%ers of t(e 8oard of Directors of <R;DC s(all %e no+inees of t(e PC== and 1E0 t(ereof s(all %e no+inees of !r. 8enedicto. On .ul3 14& 1/?9& ;IP and <R;DC& as se1uestered %3 PC== entered into an agree+ent 5addendu+6 e7tending t(e ter+s of t(eir .anuar3 1& 1/:9 agree+ent t(ereof to an indefinite *eriod ,on its e7isting ter+s and conditions, 'it( eit(er *art3 (aving t(e rig(t to ter+inate t(e agree+ent u*on si7 596 +ont(s *rior 'ritten notice to t(e ot(er *art3 On !a3 10& 1/??& <R;DC served u*on ;IP a letter advising t(at t(e +anage+ent agree+ent s(all %e ter+inated si7 596 +ont(s fro+ said date. It 'as latter learned t(at t(e letter of ter+ination 'as %roug(t a%out %3 <R;DCs decision to (ave <e' >orld ;otel P(ili**ines 5<>;P6 +anage t(e *ro*ert3 in lieu of ;IP. Contending t(at t(ere 'as %reac( of Article 1? of its original +anage+ent agree+ent 'it( <R;DC& ;IP initiated on <ove+%er 2& 1/?? an action for intervention in Sandigan%a3an& a se1uestration case& and '(erein <R;DC 'as included as a+ong t(e fir+s se1uestered& alleged to %e *art of t(e ill gotten 'ealt( a+assed %3 Ro%erto S. 8enedicto in cons*irac3 'it( for+er President -erdinand !arcos. )(e *ro*osed co+*laint in intervention attac(ed to t(e +otion in intervention 1uestions t(e ter+ination of t(e +anage+ent agree+ent 'it(out t(e corres*onding *rior notice andEor rig(t of first refusal under Article 1? of t(e

A2010 Avena
Agree+ent. Petitioner liAe'ise *ra3ed for recover3 of un*aid +anage+ent fees under t(e agree+ent. On <ove+%er 11& 1/??& t(e Sandigan%a3an issued t(e 1uestioned Resolution den3ing ;IPs +otion for intervention for lacA of 4urisdiction since ;IP (as flied t(e *resent *etition contending t(at& the Sandigan a!an has e%clusive and original jurisdiction over all cases civil or criminal# and all incidents arising from incidental to# or related to# such cases necessaril! fall li'e$ise under the Sandigan a!anCs e%clusive# and original jurisdiction su ject to revie$ on certiorari e%clusivel! ! the Supreme Court )(e court a 1uo issued a te+*orar3 restraining order on <ove+%er 19& 1/??.

Prof. Victoria A.

331

inde*endentl3 of eac( ot(er. I*(olding t(e legalit3 of 8enedictoDs ac1uisition of t(e se1uestered *ro*ert3 is not a guarantee t(at ;IPDs +anage+ent contract 'ould %e u*(eld& for onl3 t(e 8oard of Directors of <R;DC is 1ualified to +aAe suc( a deter+ination. 9. NO Reasoning )(e original and e7clusive 4urisdiction given to t(e Sandigan%a3an over PC== cases *ertains to 5a6 cases filed %3 t(e PC==& *ursuant to t(e e7ercise of its *o'ers under #7ecutive Order <os. 1& 2 and 14. as a+ended %3 t(e Office of t(e President& and Article [VIII& Section 29 of t(e Constitution& i.e.& '(ere t(e *rinci*al cause of action is t(e recover3 of ill gotten 'ealt(& as 'ell as all incidents arising fro+& incidental to& or related to suc( cases and 5%6 cases filed %3 t(ose '(o 'is( to 1uestion or c(allenge t(e co++issionDs acts or orders in suc( cases. #videntl3& *etitionerDs *ro*osed co+*laint in intervention is an ordinar3 civil case t(at does not *ertain to t(e Sandigan%a3an. As t(e Solicitor =eneral stated& t(e co+*laint is not directed against PC== as an entit3& %ut against a *rivate cor*oration& in '(ic( case it is not *er se& a PC== case. Dispositive. Dis+issed.

ISSUES 3. WON pe i i!ne" -%# % *e+%* in e"e# #,&&icien ! .,# i&( i # in e"'en i!n 9. WON -e S%n)i+%n7%(%n -%# .,"i#)ic i!n !'e" -e #,7.ec D% e" !& pe i i!ne"$# p"!p!#e) c!Dp*%in -in-in e"'en i!n HELD 3. NO Reasoning Sec. 2 of Rule 12 tells us t(at a *erson +a3 intervene in *roceedings in *rogress if t(at *erson (as a legal interest in t(e success of eit(er of t(e *arties& or against %ot( or '(en a dis*osition of t(e *ro*ert3 involved 'ould affect t(e *ros*ective intervenor. ;olida3 Inn& Inc.& (as not s(o'n (o' t(e ter+ination or continuation of its +anage+ent contract 'ould %e legall3 affected %3 a finding of '(et(er or not Ro%erto S. 8enedicto la'full3 ac1uired RIVI#RA. )(e su%4ect +atter of *etitionerDs *ro*osed co+*laint in intervention involves %asicall3& an inter*retation of contract& i.e.& '(et(er or not t(e rig(t of first refusal could andEor s(ould (ave %een o%served& %ased on t(e Addendu+EAgree+ent of .ul3 14& 1/??& '(ic( e7tended t(e ter+s and conditions of t(e original agree+ent of .anuar3 1& 1/:9. )(e 1uestion of '(et(er or not t(e se1uestered *ro*ert3 'as la'full3 ac1uired %3 Ro%erto S. 8enedicto (as no %earing on t(e legalit3 of t(e ter+ination of t(e +anage+ent contract %3 <R;DCDs 8oard of Directors. )(e t'o are inde*endent and unrelated issues and resolution of eit(er +a3 *roceed

ORDONEZ V /USTILO 1/2 SCRA 49/ PARAS$ Dece+%er 20& 1//0

NATURE Petition for certiorari to revie' decision and order of R)C Cavite& 8r. 19& Cavite Cit3& =ustilo& .. FACTS Res*ondent #s*iritu filed co+*laint for s*ecific *erfor+ance and da+ages against res*ondents !unici*alit3 of Rosario& Cavite and !a3or #nri1ueB to enforce t(eir agree+ent contained in a Recla+ation Contract. Plaintiff *ra3s t(at a *ortion of t(e fores(ore land of t(e to'n %e conve3ed to (i+ as assignee of Salinas Dev2t. Cor*. 5SAD#CO6& t(e entit3 '(ic( reclai+ed t(e land in 1uestion. Defendants resisted t(e clai+ stating it 'as %arred %3 t(e statute of li+itations. ;erein *etitioner& t(e %aranga3 ca*tain of )e4eros Convention& Rosario& Cavite& toget(er 'it( : ot(ers intervened and alleged in t(eir Ans'er in

Civil Procedure Digest

Intervention t(at t(e area %eing clai+ed %3 #s*iritu ca+e a%out %3 natural accretion and t(at t(e Recla+ation Contract is null and void. At t(e *re trial conference& '(ere t(e original *arties and intervenors 'ere *resent& #s*iritu and defendant +unici*alit3 +anifested t(at t(e3 'ould su%+it to a co+*ro+ise agree+ent at a latter date. On t(e ot(er (and& intervenors asAed t(at t(e3 %e allo'ed to *resent evidence to *rove t(eir defense. )(e *rinci*al litigants su%+itted to t(e court t(eir co+*ro+ise agree+ent. )C a**roved and rendered a decision in accordance t(ere'it(. Cet& intervenors continued to *resent evidence& regarding t(eir allegations. 2 3ears later& intervenors filed a +otion to set aside t(e co+*ro+ise agree+ent. Res*ondent 4udge denied. .udge =ustilo also ter+inated t(e *roceedings and ordered t(e case to %e closed. ISSUE0S >O< trial court erred in sto**ingE*reventing t(e intervenors fro+ furt(er *resenting evidence in su**ort of t(eir Ans'er in Interevention. HELD 1. <O. Intervention is defined as a F*roceeding in a suit or action %3 '(ic( a t(ird *art3 is *er+itted %3 t(e court to +aAe (i+self a *art3& eit(er 4oining *laintiff in clai+ing '(at is soug(t %3 t(e co+*laint& or uniting 'it( defendant in resisting t(e clai+s of *laintiff& or de+anding so+et(ing adversel3 to %ot( of t(e+$ t(e act or *roceeding %3 '(ic( a t(ird *erson %eco+es a *art3 in a suit *ending %et'een t(e ot(ers$ t(e ad+ission& %3 leave of court& of a *erson not an original *art3 to *ending legal *roceedings& %3 '(ic( suc( *erson %eco+es a *art3 t(ereto for t(e *rotection of so+e rig(t or interest alleged %3 (i+ to %e affected %3 suc( *roceedings.L Ratio Intervention is !n*( c!**% e"%* !" %nci**%"( ! -e D%in %c i!n. ;ence& it 'as *reviousl3 ruled t(at t(e &in%* )i#Di##%* !& -e p"incip%* %c i!n "e#,* # in -e )i#Di##%* !& #%i) %nci**%"( %c i!n. Reasoning A 4udg+ent a**roving a co+*ro+ise agree+ent is final and i++ediatel3 e7ecutor3. All *ending issues 'ill %eco+e +oot and acade+ic once a co+*ro+ise su%+itted %3 t(e *arties is a**roved %3 t(e trial court. )(e continuation of rece*tion of intervenor2s evidence 'ould serve no *ur*ose at all. S(ould intervenors fail to *rove t(at t(e Recla+ation Contract is null and void and t(at no actual

A2010 Avena
recla+ation 'as +ade& t(e correctness and *ro*riet3 of t(e decision %ased u*on t(e co+*ro+ise agree+ent 'ould %e strengt(ened. On t(e ot(er (and& s(ould t(e3 succeed in *roving t(at t(e contract is null and void& and t(at t(e area in 1uestion ca+e into %eing t(roug( t(e natural action of t(e sea& still t(e decision of t(e lo'er court could no longer %e set aside& inas+uc( as it (as alread3 %eco+e final and e7ecuted. Disposition >;#R#-OR#& for lacA of +erit& t(e *etition is DIS!ISS#D. Costs against *etitioner.

Prof. Victoria A.

33:

A/ULTO ' TECSON /.R. N!.3:4925 CORONA=N!'eD7e" 9>, 9BB4

-AC)S@ On August 25& 1//:& t(e res*ondent >illia+ S. )ecson filed an action for da+ages against *etitioners Rolando Agulto& !a7i+a Agulto& Cecille )enoria and a certain !ari%el !allari in t(e R)C of HueBon Cit3. Agulto filedan ans'er clai+ing t(at )ecson (ad no cause of action and alleged +alicious *rosecution. R)C dis+issed )ecson2s co+*laint 5failure to *rosecute for an unreasona%le lengt( of ti+e6. )ecson filed a +otion for reconsideration& '(ic( 'as gracted. Court re1uired t(e *arties to a**ear during t(e *re trial conference sc(eduled on .anuar3 21& 1///. )(e *re trial 'as& (o'ever& reset to A*ril 2/& 1///. During t(e sc(eduled *re trial on A*ril 2/& 1///& *etitioner Rolando Agulto and (is counsel 'ere infor+ed %3 an e+*lo3ee of t(e R)C t(at t(e *residing 4udge 'as on leave. Counsel for Agulto suggested t(at it %e re sc(eduled on .une 1:. #+*lo3ee advised *etitioner2s counsel t(at t(e suggested setting 'as not 3et official as it 'ould de*end on t(e calendar of t(e court and t(e counsel of res*ondent. )(e *re trial *roceeded on .une 1:& 1///. -or failure of *etitioners to a**ear at t(e *re trial and to su%+it t(eir *re trial %rief& t(e R)C issued an order allo'ing t(e res*ondent to *resent (is evidence e% parte Petitioners filed a +otion for reconsideration of t(e .une 1:& 1/// order of t(e R)C. )(e3 clai+ed t(at t(e3 'ere not notified of t(e *re trial (eld on .une 1:& 1///. 8efore t(e +otion could %e (eard& (o'ever& t(e court rendered its .ul3 12& 1/// decision in favor of res*ondent. Petitioners 'ere ordered to *a3 res*ondent +oral da+ages&

e7e+*lar3 da+ages and attorne32s fees in t(e aggregate a+ount of P1:0&000. Petitioners filed a *etition for certiorari under Rule 95 of t(e 1//: Rules of Civil Procedure 'it( t(e CA on <ove+%er 24& 1///. )(e3 clai+ed t(at t(e R)C gravel3 a%used its discretion '(en it issued t(e Se*te+%er 24& 1/// order CA dis+issed t(e *etition. It ruled t(at t(e *ro*er re+ed3 'as a**eal %3 'rit of error& i.e.& ordinar3 a**eal& under Rule 41 of t(e 1//: Rules of Civil Procedure& not a *etition for certiorari under Rule 95. )(e CA also (eld t(at t(e *etitioners failed to s(o' t(at t(eir a%sence during t(e sc(eduled *re trial 'as for a valid cause ;ence& t(is *etition for revie' on certiorari under Rule 45 of t(e Rules of Court ISSI#@ >O< R)C acted 'it( grave a%use of discretion in not considering Agulto2s +otions for reconsideration regarding t(e *re trial. ;#"D@ C#S Inder t(e *resent Section 0& Rule 1? of t(e 1//: Rules of Civil Procedure& t(e notice of *re trial s(ould %e served on counsel. )(e counsel served 'it( notice is c(arged 'it( t(e dut3 of notif3ing t(e *art3 (e re*resents. It is onl3 '(en a *art3 (as no counsel t(at t(e notice of *re trial is re1uired to %e served *ersonall3 on (i+. )(us& t(e *resent rule si+*lifies t(e *rocedure in t(e sense t(at notice of *re trial is served on counsel& and service is +ade on a *art3 onl3 if (e (as no counsel. 4t does not# ho$ever# dispense $ith notice of pre.trial. )(us& sending a notice of *re trial stating t(e date& ti+e and *lace of *re trial is +andator3. Its a%sence 'ill render t(e *re trial and su%se1uent *roceedings void. )(us& t(e trial court2s order allo'ing t(e *laintiff to *resent (is evidence e% parte 'it(out due notice of *re trial to t(e defendant constitutes grave a%use of discretion Alt(oug( t(e failure of t(e defendant to file a *re trial %rief (as t(e sa+e effect as (is failure to a**ear at t(e *re trial 5t(is is& t(e *laintiff +a3 %e allo'ed to *resent (is evidence e% parte and t(e court s(all render 4udg+ent on t(e %asis t(ereof6& a condition *recedent is t(e service of notice of *re trial. Ot(er'ise& t(e defendant 'ill %e gro*ing in t(e darA as to '(en e7actl3 (e is su**osed to file (is *re trial %rief. !ore s*ecificall3& under Section 9& Rule 1? of t(e 1//: Rules of Civil Procedure& t(e *arties are re1uired to file 'it( t(e court and serve on t(e

Civil Procedure Digest

adverse *art3& in suc( +anner as s(all ensure t(eir recei*t t(ereof at least t(ree da3s %efore t(e date of t(e *re trial& t(eir res*ective *re trial %riefs. Clearl3& t(e date of t(e *re trial is t(e recAoning *oint for t(e filing of t(e *re trial %rief. 8ut 'it(out *rior notice of *re trial& t(e *arties cannot reasona%l3 %e e7*ected to Ano' t(e date of t(e *re trial.

A2010 Avena
On A*ril 4& 2000& *etitioner received a co*3 of t(e Decision. On A*ril 21& 2000& *etitioner t(roug( Att3. "ucas C. Car*io& .r. filed a !otion for <e' )rial on t(e ground of gross negligence of *etitionerDs counsel in failing to attend t(e (earing for t(e rece*tion of evidence& t(us i+*airing (is rig(ts to due *rocess. )(e trial court denied t(e +otion for ne' trial. Dissatisfied& *etitioner filed 'it( t(e Court of A**eals a *etition for certiorari. )(e CA dis+issed t(e *etition and denied *etitionerDs +otion for reconsideration. ;ence& t(is Petition. ISSUES@ 516 >O< *etitioner2s +otion for ne' trial 'as filed out of ti+e$ 526 >O< a *etition for certiorari is t(e *ro*er re+ed3 to overturn t(e denial of a +otion for ne' trial$ 506 >O< t(e +otion for ne' trial s(ould %e granted. HELD@ 516 <O. A scrutin3 of t(e records discloses t(at '(ile t(e !otion for <e' )rial 'as received %3 t(e trial court on A*ril 2?& 2000& t(e date on t(e Registr3 Recei*t attac(ed to t(e Affidavit of Service as 'ell as t(at sta+*ed on t(e envelo*e '(ic( contained t(e co*3 of t(e +otion& reveals t(at it 'as filed and served %3 registered +ail on A*ril 21& 2000& a !onda3& %ecause A*ril 1/& 2000& t(e last da3 for filing t(e sa+e 'as a Saturda3. Section 1& Rule 22 of t(e Rules of Court states t(at if t(e last da3 of t(e *eriod t(us co+*uted falls on a Saturda3& a Sunda3& or a legal (olida3 in t(e *lace '(ere t(e court sits& t(e ti+e s(all not run until t(e ne7t 'orAing da3. )(us& t(e +otion 'as actuall3 filed on ti+e it (aving %een filed on A*ril 21& 2000& t(e ne7t 'orAing da3& follo'ing t(e last da3 for filing '(ic( fell on a Saturda3. 526 C#S. Section /& Rule 0: of t(e Rules of Court '(ic( *rovides t(at t(e re+ed3 to an order den3ing a +otion for ne' trial is to a**eal t(e 4udg+ent or final order& +ust %e read in con4unction 'it( Section 1& Rule 41 '(ic( *rovides t(at Fno a**eal +a3 %e taAen fro+ an order den3ing a ne' trial or reconsideration.L Rule 41& Section 1 furt(er *rovides t(at@ F'(ere t(e 4udg+ent or final order is not a**eala%le& t(e aggrieved *art3 +a3 file an a**ro*riate s*ecial civil action under Rule 95.L )(us& t(e filing %3 t(e *etitioner of a *etition for certiorari 'it( t(e Court of A**eals fro+ t(e denial of t(e +otion for ne' trial %3 t(e trial court is *ro*er.

Prof. Victoria A.

334

c. #,7p!en% ). R,*e 99 UY '#. FIRST METRO INTE/RATED STEEL CORP. =.R. <o. 19:245 C<AR#S SA<)IA=O$ Se*te+%er 2:& 2009
NATURE@ Petition for Revie' FACTS@ Private res*ondent -irst !etro Integrated Steel Cor*oration 5-!ISC6 filed a co+*laint for su+ of +one3 'it( *ra3er for 'rit of *reli+inar3 attac(+ent against Ro%ert .uan I3 5Ro%ert6& !idland Integrated Construction Co+*an3 5!ICC6 and *etitioner #l*idio I3. )(e co+*laint arose fro+ *etitioner2s issuance of a c(ecA in t(e a+ount of P9/5&?11.00 in favor of -!ISC to cover *a3+ent for defor+ed steel %ars delivered %3 t(e latter to *etitioner and *rivate res*ondents !ICC and Ro%ert. ;o'ever& t(e c(ecA 'as dis(onored u*on *resent+ent and des*ite de+ands& !ICC& Ro%ert and *etitioner refused to *a3. After t(e filing of t(e res*ective Ans'ers of -!ISC& Ro%ert and !ICC& (earings 'ere t(ereafter conducted for t(e rece*tion of t(eir res*ective evidence. )(e initial rece*tion of *etitionerDs evidence 'as set on -e%ruar3 2?& 2001 %ut it 'as cancelled %ecause *etitioner (ad influenBa. )(e (earing 'as reset si7 +ore ti+es& %ut in eac( instance& *etitioner& t(roug( (is la'3ers& +oved for t(e cancellation and resetting of t(e *resentation of (is evidence. During t(e si7t( sc(eduled (earing on -e%ruar3 2?& 2002& Att3. 8aPares& counsel for *etitioner arrived late. I*on +otion of -!ISC& t(e trial court ordered t(at *etitionerDs rig(t to *resent evidence is dee+ed 'aived and t(e *arties 'ere directed to file t(eir res*ective +e+orandu+. Att3. 8aPares 'it(dre' (is a**earance on .anuar3 ?& 2000 'it( *etitionerDs confor+it3. On !arc( :& 2000& t(e trial court rendered 4udg+ent against *etitioner and in favor of -!ISC.

506 <O. Section 1& Rule 0: *rovides t(at a +otion for ne' trial +a3 %e filed 'it(in t(e *eriod for taAing an a**eal %ased& a+ong ot(ers& on e7cusa%le negligence. <egligence to %e e7cusa%le +ust %e one '(ic( ordinar3 diligence and *rudence could not (ave guarded against. In t(e instant case& t(e negligence of *etitionerDs counsel in failing to attend t(e (earings for t(e rece*tion of evidence is ine7cusa%le. )(e trial court sc(eduled t(e (earing for t(e rece*tion of *etitionerDs evidence seven ti+es. )(e initial (earing set on -e%ruar3 2?& 2001 'as cancelled %ecause *etitioner allegedl3 (ad influenBa. )(e (earings sc(eduled on A*ril 29& 2001 and !a3 10& 2001 'ere cancelled and +oved to Octo%er 25& 2001 and Dece+%er 10& 2001. Petitioner 'as re*resented %3 Att3. Car*io& .r. as colla%orating counsel during t(e (earing on Octo%er 25& 2001 %ut no evidence 'as *resented. Instead& t(e (earing 'as cancelled. On Dece+%er 10& 2001& Att3. 8aPares& *etitionerDs ne' counsel& a**eared %ut (e re1uested for a resetting. On -e%ruar3 14& 2002& Att3. 8aPares +oved to *ost*one t(e (earing to -e%ruar3 2?& 2002 as *reviousl3 sc(eduled. On -e%ruar3 2?& 2002& Att3. 8aPares arrived late. )(e records disclose t(at t(e (earings 'ere *ost*oned or cancelled 'it(out an3 4ustification. ;o'ever& t(e trial court acco++odated t(e re1uests for *ost*one+ent or resetting in order to accord *etitioner due *rocess. Inder t(e circu+stances& *etitionerDs counselDs failure to attend t(e seven sc(eduled (earings is 'it(out 4ustifia%le reason tanta+ount to ine7cusa%le neglect. As suc(& it cannot %e a ground for ne' trial. In addition& t(e Rule re1uires t(at +otions for ne' trial founded on fraud& accident& +istaAe or e7cusa%le negligence +ust %e acco+*anied %3 affidavits of +erits& i.e.& affidavits s(o'ing t(e facts 5not +ere conclusions or o*inions6 constituting t(e valid cause of action or defense '(ic( t(e +ovant +a3 *rove in case a ne' trial is granted& %ecause a ne' trial 'ould serve no *ur*ose and 'ould 4ust 'aste t(e ti+e of t(e court as 'ell as t(e *arties if t(e co+*laint is after all groundless or t(e defense is nil or ineffective. Inder t(e Rules& t(e +oving *art3 +ust s(o' t(at (e (as a +eritorious defense. )(e facts constituting t(e +ovantDs good and su%stantial defense& '(ic( (e +a3 *rove if t(e *etition 'ere granted& +ust %e s(o'n in t(e affidavit '(ic( s(ould acco+*an3 t(e +otion for a ne' trial. PetitionerDs Affidavit of !erit did not contain clear state+ents of t(e facts

Civil Procedure Digest

constituting a good and valid defense '(ic( (e +ig(t *rove if given t(e c(ance to introduce evidence. )(e allegations t(at (e (as a ,+eritorious defense, and a ,good cause, are +ere conclusions '(ic( did not *rovide t(e court 'it( an3 %asis for deter+ining t(e nature and +erit of t(e case. An affidavit of +erit s(ould state facts& and not +ere o*inion or conclusions of la'. PetitionerDs +otion for ne' trial and affidavit of +erit did not +ention t(e evidence '(ic( (e 'as *revented fro+ introducing& nor did it allege t(at suc( evidence 'ould c(ange t(e outco+e of t(e case. PetitionerDs argu+ent t(at (is counselDs negligence 'as so gross t(at (e 'as de*rived of due *rocess fails to i+*ress. =ross negligence is not one of t(e grounds for a +otion for a ne' trial. >e cannot declare (is counselDs negligence as gross as to li%erate (i+ fro+ t(e effects of (is failure to *resent countervailing evidence. 8esides& 'e find t(at *etitionerDs and (is counselDs negligence are concurrent. During t(e initial (earing for t(e rece*tion of (is evidence& *etitioner 'as a%sent allegedl3 due to influenBa. During t(e succeeding sc(eduled (earings& *etitioner 'as a%sent %ut (is la'3er& Att3. !olina& 'as *resent %ut did not *resent an3 evidence. Instead& +otions for *ost*one+ent or resetting 'ere +ade. In one occasion& Att3. !olina 'as a%sent %ut Att3. Car*io& .r. a**eared as colla%orating counsel. Still& no evidence 'as *resented %ut a resetting 'as again re1uested. -inall3& *etitionerDs counselDs ine7cusa%le neglect did not a+ount to *etitionerDs de*rivation of due *rocess of la'. )(e rig(t to due *rocess safeguards t(e o**ortunit3 to %e (eard and to su%+it an3 evidence one +a3 (ave in su**ort of (is clai+ or defense. In t(e instant case& *etitioner 'as given several o**ortunities to %e (eard and to su%+it evidence %ut (e s1uandered t(e+. 8lunders and +istaAes in t(e conduct of t(e *roceedings in t(e trial court as a result of t(e ignorance& ine7*erience or inco+*etence of counsel do not 1ualif3 as a ground for ne' trial. DISPOSITIVE@ )(e Petition is D#<I#D for lacA of +erit.

A2010 Avena

Prof. Victoria A.

335