CIVIL PROCEDURE REVIEWER1

CIVIL PROCEDURE REVIEWER

Based on Justice De Leons Outline, Civil Procedure by Riano, San Beda Re ie!e", and 1##$ Rules o% Cou"t Digests (by Abdulwahid, Cabal, Comafay, Fuster, Leynes, Mendame, Mendez, Paras !egis" further summarized# BASIC PRINCIPLES Difference between substantive and remedia aw SUBS&'(&IVE L'W It c"eates, de%ines and "e*ulates "i*+ts and duties conce"nin* li%e, libe"ty o" ,"o,e"ty, !+ic+ !+en iolated *i es "ise to a cause o% actionRE)EDI'L L'W It ,"esc"ibes t+e .et+ods o% en%o"cin* t+ose "i*+ts and obli*ations c"eated by substanti e la! by ,"o idin* a ,"ocedu"al syste. %o" obtainin* "ed"ess %o" t+e in asion o% "i*+ts and iolations o% duties and by ,"esc"ibin* "ules as to +o! suits a"e %iled, t"ied and decided u,on by t+e cou"ts-

/10 &+e "ules s+all ,"o ide a si.,li%ied and ine8,ensi e ,"ocedu"e %o" t+e s,eedy dis,osition o% cases9 /40 s+all be uni%o". %o" cou"ts o% t+e sa.e *"ade9 and /50 s+all not di.inis+, inc"ease, o" .odi%y substanti e "i*+tsArticle &, $ec# '(, Constitution1 (o la! s+all be ,assed increasing t+e a,,ellate 3u"isdiction o% t+e Su,"e.e Cou"t as ,"o ided in t+is Constitution !it+out its ad ice and concu""encePr!cedura and substantive ru es $ubstantive law c"eates, de%ines, "e*ulates, and e8tin*uis+es "i*+ts and obli*ations, !+ile "e.edial o" %rocedural law ,"o ides t+e ,"ocedu"e %o" t+e en%o"ce.ent o% "i*+ts and obli*ations,!rce and effect !f Ru es !f C!urt &+e Rules o% Cou"t +a e t+e %o"ce and e%%ect o% la!, unless t+ey +a,,en to be inconsistent !it+ ,ositi e la!P!wer !f Su#reme C!urt t! suspend t+e Ru es !f C!urt W+ene e" de.anded by 3ustice, t+e Su,"e.e Cou"t +as t+e inherent %ower to /a0 sus,end its o!n "ules or /b0 e8e.,t a ,a"ticula" case %"o. t+e o,e"ation o% said "ules-a. #arties c+an$e t+e ru es !f #r!cedure/ )eneral rule* &+ey .ay not- &+is is because t+ese a"e .atte"s o% ,ublic inte"est+,ce%tions2 )atte"s o% ,"ocedu"e !+ic+ .ay be Agreed u%on by the %arties- Venue .ay be c+an*ed by !"itten a*"ee.ent o% t+e ,a"ties /Rule :, Sec- :;b<0 .aived- Venue .ay be !ai ed i% not ob3ected to in a .otion to dis.iss o" in t+e ans!e"- /Rule 1=, Sec- =09 3ud*.ent in de%ault .ay be !ai ed by %ailu"e to ans!e" !it+in 1> days Fall within the discretion of the court- &+e ,e"iod to ,lead .ay be e8tended on .otion o% a ,a"ty- /Rule 11, Sec- 1109 "ules o% ,"ocedu"e .ay be "ela8ed in t+e inte"est o% 3ustice0URISDIC1ION It is t+e ,o!e" and aut+o"ity o% a cou"t to +ea", t"y and decided a case'2 %enera . &+e statute in %o"ce at t+e ti.e o% t+e co..ence.ent o% t+e action dete".ines t+e 3u"isdiction o% t+e cou"t Be%o"e loo6in* into ot+e" .atte"s, it is t+e duty o% t+e cou"t to conside" t+e ?uestion o% 3u"isdiction without !aitin* %o" it to be "aised-

Civi acti!ns" crimina acti!ns" and s#ecia #r!ceedin$s /10 Civil actions1 It is one by !+ic+ a ,a"ty sues anot+e" %o" t+e ,"otection o% a "i*+t o" t+e ,"e ention o" "ed"ess o% a !"on*- Its ,"i.a"y ,u",ose is co.,ensato"yCi il actions .ay be2 /a0 O"dina"y, or /b0 S,ecialBot+ a"e *o e"ned by "ules %o" o"dina"y ci il actions, sub3ect to s,eci%ic "ules ,"esc"ibed %o" s,ecial ci il actions/40 Criminal actions1 It is one by !+ic+ t+e State ,"osecutes a ,e"son %o" an act o" o.ission ,unis+able by la!- Its ,"i.a"y ,u",ose is ,unis+.ent/50 $%ecial %roceedings1 It is a "e.edy by !+ic+ a ,a"ty see6s to establis+ a status, a "i*+t o" a ,a"ticula" %act-

%ENERAL PROVISIONS &Ru e '( Ru e)ma*in$ #!wer !f t+e Su#reme C!urt &+e Su,"e.e Cou"t +as t+e constitutional ,o!e" to ,"o.ul*ate "ules conce"nin*2 /10 Pleadin*, /40 P"actice, and /50 P"ocedu"e&+"ee /50 li.itations on t+e SCs "ule7.a6in* ,o!e"2

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CIVIL PROCEDURE REVIEWER4

I% cou"t +as 3u"isdiction, suc+ .ust be e8e"cised- Ot+e"!ise, it .ay be en%o"ced by a mandamus ,"oceedin* I% cou"t +as no 3u"isdiction, t+e cou"t s+all dis.iss t+e clai. and can do so motu %ro%rioDoctrine of %rimary /urisdiction&+e cou"ts !ill not "esol e a cont"o e"sy in ol in* a ?uestion !+ic+ is !it+in t+e 3u"isdiction o% an ad.inist"ati e t"ibunalDoctrine of continuing /urisdiction1 Once 3u"isdiction +as attac+ed to a cou"t, it "etains t+at 3u"isdiction until it %inally dis,oses o% t+e case- Bence, it is not lost by &+e ,assa*e o% ne! la!s t"ans%e""in* t+e 3u"isdiction to anot+e" t"ibunal e,ce%t !+en e8,"essly ,"o ided by t+e statute9 Subse?uent %ilin* o% a notice o% a,,eal9 &+e .e"e %act t+at a ,a"ty !+o is a ,ublic o%%icial ceased to be in o%%ice9 or Cinality o% 3ud*.ent /t+e cou"t still +as 3u"isdiction to en%o"ce and e8ecute it0

ac?ui"ed, 3u"isdiction is not lost because o% t+e de%endants cont"a"y alle*ation+,ce%tion2 In e3ect.ent cases, !+e"e tenancy is a e""ed by !ay o% de%ense and is ,"o ed to be t+e "eal issue, t+e case s+ould be dis.issed %o" not bein* ,"o,e"ly %iled !it+ t+e D'R'B It is dete".ined by t+e cause o% action alle*ed, not by t+e a.ount substantiated and a!a"ded- +,am%le2 I% a co.,laint alle*es a "eco e"able a.ount o% P1), R&C +as 3u"isdiction e en i% e idence ,"o es t+e only P5DD6 .ay be "eco e"ed-

0ote2 Ju"isdiction o e" t+e sub3ect .atte" C'((O& be !ai ed, enla"*ed o" di.inis+ed by sti,ulation o% t+e ,a"ties&b( As t! res !r #r!#ert. Ju"isdiction o e" t+e "es "e%e"s to t+e cou"ts 3u"isdiction o e" t+e t+in* o" t+e ,"o,e"ty !+ic+ is t+e sub3ect o% t+e actionJu"isdiction o e" t+e res is ac?ui"ed by /10 Custodia legis-,lacin* t+e ,"o,e"ty o" t+in* unde" t+e cou"ts custody /e-*-, attac+.ent0 /40 $tatutory authority1statute con%e""in* t+e cou"t !it+ ,o!e" to deal !it+ t+e ,"o,e"ty o" t+in* !it+in its te""ito"ial 3u"isdiction /50 Su..ons by ,ublication o" ot+e" .odes o% e8t"ate""ito"ial se" ice /Rule 1:, Sec- 1>0 &c( As t! t+e issues 1ssue1 a dis,uted ,oint o" ?uestion to !+ic+ ,a"ties to an action +a e na""o!ed do!n t+ei" se e"al alle*ations and u,on !+ic+ t+ey a"e desi"ous o% obtainin* a decision- &+us, !+e"e t+e"e is no dis,uted ,oint, t+e"e is no issueJu"isdiction o e" t+e issue .ay be con%e""ed o" dete".ined by /10 +,amination of the %leadings1 Eene"ally, 3u"isdiction o e" t+e issues is dete".ined by t+e ,leadin*s o% t+e ,a"ties/40 Pre2trial1 It .ay be con%e""ed by sti,ulation o% t+e ,a"ties in t+e ,"e7t"ial, as !+en t+ey ente" into sti,ulations o% %acts and docu.ents o" ente" into an a*"ee.ent si.,li%yin* t+e issues o% t+e case /Rule 1F, Sec- 40 /50 .aiver1 Cailu"e to ob3ect to ,"esentation o% e idence on a .atte" not "aised in t+e ,leadin*s- Said issues t"ied s+all be t"eated as i% t+ey +ad been "aised in t+e ,leadin*s&d( As t! t+e #arties &+e cou"t ac?ui"es 3u"isdiction o e" t+e Plaintiff1 !+en +e %iles +is co.,laint Defendant1

E ements !f a va id e3ercise !f 4urisdicti!n /10 Ju"isdiction o e" t+e sub3ect .atte" o" natu"e o% t+e case9 /40 t+e ,a"ties9 /50 t+e res i% 3u"isdiction o e" t+e de%endant cannot be ac?ui"ed9 /:0 t+e issue o% t+e case9 and />0 Pay.ent o% doc6et %eesJu"isdiction o e" t+e sub3ect .atte" is a .atte" o% substanti e la!Ju"isdiction o e" t+e ,a"ties, t+e res and t+e issues a"e .atte"s o% ,"ocedu"e- Ju"isdiction o e" t+e ,a"ties and t+e res a"e co e"ed by t+e "ule on su..ons, !+ile 3u"isdiction o e" t+e issues is subsu.ed unde" t+e "ule on ,leadin*s&a( As t! sub4ect matter Ju"isdiction o e" t+e sub3ect .atte" is con%e""ed by t+e Constitution o" by la!&+e"e%o"e, 3u"isdiction o e" t+e sub3ect .atte" cannot be con%e""ed by /10 'd.inist"ati e ,olicy o% any cou"t9 /40 Cou"ts unilate"al assu.,tion o% 3u"isdiction9 /50 E""oneous belie% by t+e cou"t t+at it +as 3u"isdiction9 /:0 By cont"act o" by t+e ,a"ties9 />0 By a*"ee.ent, o" by any act o" o.ission o% t+e ,a"ties, no" by ac?uiescence o% t+e cou"t9 or /=0 By t+e ,a"ties silence, ac?uiescence o" consent )eneral !ule* It is dete".ined by t+e .ate"ial alle*ations o% t+e initiato"y ,leadin* /e-*-, t+e co.,laint0, not t+e ans!e" o% t+e de%endant- Once

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iii-

Valid se" ice o% su..ons u,on +i., or Volunta"y a,,ea"ance2 G&+e de%endants olunta"y a,,ea"ance in t+e action s+all be e?ui alent to se" ice o% su..ons- &+e inclusion in a .otion to dis.iss o% ot+e" *"ounds aside %"o. lac6 o% 3u"isdiction o e" t+e ,e"son o% t+e de%endant shall not be dee.ed a olunta"y a,,ea"ance/Rule 1:, Sec- 4D0 +,am%les2 W+en de%endant %iles &+e necessa"y ,leadin*9 ' .otion %o" "econside"ation9 Petition to set aside 3ud*.ent o % de%ault9 'n ans!e"9 Petition %o" ce"tio"a"i !it+out ?uestionin* t+e cou"ts 3u"isdiction o e" +is ,e"son9 or W+en t+e ,a"ties 3ointly sub.it a co.,"o.ise a*"ee.ent %o" a,,"o al BU& t+e %ilin* o% an ans!e" should not be t"eated auto.atically as a olunta"y a,,ea"ance !+en suc+ ans!e" is ,"ecisely to ob3ect to t+e cou"ts 3u"isdiction o e" t+e de%endants ,e"sonLa 0aval v# CA2 ' de%endant s+ould be allo!ed to ,ut u, +is o!n de%enses alte"nati ely o" +y,ot+etically- It s+ould not be t+e in ocation o% a ailable additional de%enses t+at s+ould be const"ued as a !ai e" o% t+e de%ense o% lac6 o% 3u"isdiction o e" t+e ,e"son, but the failure to "aise t+e de%ense-

Be"tuldo died !it+out co.,letin* +is e idence du"in* t+e di"ect e8a.ination- Be"tuldos o"i*inal counsel !as "e,laced by 'tty- Petalco"in !+o ente"ed +is a,,ea"ance as ne! counsel %o" t+e +ei"s o% Be"tuldo'tty- Petalco"in %iled a .otion to e8,un*e t+e co.,laint %"o. t+e "eco"d and nulli%y all cou"t ,"oceedin*s on t+e *"ound t+at ,"i ate "es,ondents %ailed to s,eci%y in t+e co.,laint t+e a.ount o% da.a*es clai.ed so as to ,ay t+e co""ect doc6et %ees9 and t+at unde" Manchester doct"ine, non7,ay.ent o% t+e co""ect doc6et %ee is 3u"isdictionalISSUE2 .hether the %etitioners are barred by esto%%el from 3uestioning the /urisdiction of !4C 6ES2 &+e ,etitione"s a"e ba""ed %"o. ?uestionin* 3u"isdiction o% t+e t"ial cou"t- 'lt+ou*+ t+e issue o% 3u"isdiction at any sta*e o% t+e ,"oceedin*s as t+e sa.e is con%e""ed by la!, it is nonet+eless settled t+at a ,a"ty .ay be ba""ed %"o. "aisin* it on t+e *"ound o% esto,,el- '%te" t+e deceased Be"tuldo ,a"tici,ated in all sta*es o% t+e case be%o"e t+e t"ial cou"t, t+e ,etitione"s .e"ely ste,,ed into t+e s+oes o% t+ei" ,"edecesso" and a"e e%%ecti ely ba""ed by esto,,el %"o. c+allen*in* R&Cs 3u"isdiction72 0urisdicti!n at t+e time !f fi in$ !f acti!n #EO#LE v. CA$ALING (!%& SCRA !6' (%%)" &+e 3u"isdiction o% a cou"t to t"y a c"i.inal case is dete".ined by t+e la! in %o"ce at t+e ti.e o% t+e institution o% t+e action- Once t+e cou"t ac?ui"es 3u"isdiction, it .ay not be ousted %"o. t+e case by any subse?uent e ents, suc+ as a ne! le*islation ,lacin* suc+ ,"oceedin*s unde" t+e 3u"isdiction o% anot+e" t"ibunal- E8ce,tions to t+is "ule a"ise !+en2 /10 t+e"e is an e8,"ess ,"o ision in t+e statute, o" /40 t+e statute is clea"ly intended to a,,ly to actions ,endin* be%o"e its enact.ent-

0ote2 Ju"isdiction o e" a non7"esident de%endant cannot be ac?ui"ed i% t+e action is in %ersonam52 Est!##e t! den. 4urisdicti!n HEIRS OF BERTULDO HINOG v. MELICOR (455 SCRA 460 !005" Since t+e deceased de%endant ,a"tici,ated in all sta*es o% t+e case be%o"e t+e t"ial cou"t, +e is esto,,ed %"o. denyin* t+e 3u"isdiction o% t+e cou"t- &+e ,etitione"s .e"ely ste,,ed into t+e s+oes o% t+ei" ,"edecesso" and a"e e%%ecti ely ba""ed by esto,,el %"o. c+allen*in* R&Cs 3u"isdictionC'C&S2 Be"tuldo Bino* alle*edly occu,ied and built a s.all +ouse on a ,o"tion o% a ,"o,e"ty o!ned by "es,ondents Balane %o" 1D yea"s at a no.inal annual "ental'%te" 1D yea"s, Be"tuldo "e%used to +eed de.ands .ade by "es,ondents to "etu"n said ,o"tion and to "e.o e t+e +ouse const"ucted t+e"eon- Res,ondents %iled a co.,laint a*ainst +i.- Be"tuldo %iled +is 'ns!e", alle*in* o!ne"s+i, o% t+e dis,uted ,"o,e"ty by i"tue o% a Deed o% 'bsolute Sale)E(DE@, IV'( VIA&OR /4D, 150

C'C&S2 B"ot+e"s Vicente and Ronie Elisan !e"e d"in6in* tuba at t+e 6itc+enette o% one o% t+e accused, Conta.illaW+en t+ey !e"e about to lea e, t+ey !e"e !a"ned by LuH Venus t+at t+e si8 /=0 accused consistin* o% )ayo" Ca!alin*, %ou" /:0 ,olice.en and a ci ilian, +ad been !atc+in* and !aitin* %o" t+e. outside t+e "estau"ant(e e"t+eless, t+e t!o !ent out and !e"e c+ased by t+e a".ed .en- Vicente success%ully "an and +id be+ind a coconut t"ee !+ile Ronie un%o"tunately !ent to t+e "ice%ield and !as s+ot to deat+ t+e"e'n In%o".ation alle*in* .u"de" !as %iled in t+e R&C a*ainst t+e = accused- R&C con icted t+e. o% .u"de"- On a,,eal, t+e a,,ellants ?uestioned t+e 3u"isdiction o% t+e R&C o e" t+e case, insistin* t+at t+e Sandi*anbayan !as t+e t"ibunal !it+ 3u"isdiction since t+e accused !e"e ,ublic o%%ice"s at t+e ti.e o% t+e 6illin*ISSUE2 .hether the $andiganbayan had /urisdiction NO2 &+e 3u"isdiction o% a cou"t to t"y a c"i.inal case is dete".ined by t+e la! in %o"ce at t+e ti.e o% t+e institution o% t+e action- Once t+e cou"t ac?ui"es

CIVIL PROCEDURE REVIEWER:

3u"isdiction, it .ay not be ousted %"o. t+e case by any subse?uent e ents, suc+ as a ne! le*islation ,lacin* suc+ ,"oceedin*s unde" t+e 3u"isdiction o% anot+e" t"ibunalE8ce,tions to t+is "ule a"ise !+en2 /10 t+e"e is an e8,"ess ,"o ision in t+e statute, o" /40 t+e statute is clea"ly intended to a,,ly to actions ,endin* be%o"e its enact.entSection :7a74 o% PD 1=D=, as a.ended by PD 1F=1 lists t!o "e?uisites t+at .ust concu" be%o"e t+e Sandi*anbayan .ay e8e"cise e8clusi e and o"i*inal 3u"isdiction o e" a case2 /a0 t+e o%%ense !as co..itted by t+e accused ,ublic o%%ice" in "elation to +is o%%ice9 and /b0 t+e ,enalty ,"esc"ibed by la! is +i*+e" t+an %rision correccional o" i.,"ison.ent %o" si8 /=0 yea"s, o" +i*+e" t+an a %ine o% P=,DDD$anchez vs# Demetriou cla"i%ied t+at .u"de" o" +o.icide .ay be co..itted bot+ by ,ublic o%%ice"s and by ,"i ate citiHens, and t+at ,ublic o%%ice is not a constituti e ele.ent o% said c"i.e- &+e "elation bet!een t+e c"i.e and t+e o%%ice conte.,lated s+ould be di"ect and not accidental&+e In%o".ation %iled a*ainst t+e a,,ellants contains no alle*ation t+at a,,ellants !e"e ,ublic o%%ice"s !+o co..itted t+e c"i.e in "elation to t+ei" o%%ice- &+e c+a"*e !as only %o" .u"de"In t+e absence o% any alle*ation t+at t+e o%%ense !as co..itted in "elation to t+e o%%ice o% a,,ellants o" !as necessa"ily connected !it+ t+e disc+a"*e o% t+ei" %unctions, t+e "e*ional t"ial cou"t, not t+e Sandi*anbayan, +as 3u"isdiction to +ea" and decide t+e caseRE%ULAR COUR1S &-1C" R1C" CA" SC( /See San Beda Re ie!e"0 SPECIAL COUR1S &Sandi$anba.an( /See San Beda Re ie!e"0 8UASI)0UDICIAL BODIES Securities and E3c+an$e C!mmissi!n &Sec2 925" RA :;<<( &+e Co..ission s+all "etain 3u"isdiction o e" Pendin* cases in ol in* int"a7co",o"ate dis,utes sub.itted %o" %inal "esolution !+ic+ s+ould be "esol ed !it+in one /10 yea" %"o. t+e enact.ent o% t+is Code, and Ju"isdiction o e" ,endin* sus,ension o% ,ay.entsI"e+abilitation cases %iled as o% 5D June 4DDD until %inally dis,osed2

Unde" Section :$ o% t+e 'd.inist"ati e Code, t+e CSC s+all decide on a,,eal all ad.inist"ati e disci,lina"y cases in ol in* t+e i.,osition o% GJ /d0 "e.o al o" dis.issal %"o. o%%ice-K &+e )PSB decision did not in ol e dis.issal o" se,a"ation %"o. o%%ice, "at+e", t+e decision e8one"ated ,etitione" and o"de"ed +i. "einstated to +is %o".e" ,osition- &+e )SPB decision !as not a ,"o,e" sub3ect o% a,,eal to t+e CSCC'C&S2 )a*,ale, ,o"t .ana*e" o% P+ili,,ine Po"ts 'ut+o"ity7Po"t )ana*e.ent Unit /PP'7P)U0 o% &acloban, !as %ound by t+e Sec"eta"y o% DO&C *uilty o% E"oss (e*li*ence on t!o counts2 /a0 %o" +is %ailu"e to account %o" t+e :: units o% e?ui,.ent and /b0 %o" %ailin* to "ende" t+e "e?ui"ed li?uidation o% +is cas+ ad ances a.ountin* to P::,F$$-DD %o" a ,e"iod o% : y"s- Be !as also %ound *uilty o% %"e?uent and unaut+o"iHed absences- Be !as .eted t+e ,enalty o% dis.issal %"o. t+e se" ice !it+ t+e co""es,ondin* accesso"y ,enaltiesBe a,,ealed to t+e )e"it Syste. and P"otection Boa"d /)SPB0 o% t+e Ci il Se" ice Co..ission /CSC0&+e )SPB "e e"sed t+e decisionPP' %iled an a,,eal !it+ t+e Ci il Se" ice Cield O%%ice7PP', !+ic+ indo"sed t+e a,,eal to CSC- )a*,ale .o ed %o" t+e i.,le.entation o% t+e )SPB decision !+ic+ !as o,,osed by t+e PP'- )SPB o"de"ed t+e i..ediate i.,le.entation o% its decision, !+ic+ beca.e %inal and e8ecuto"yRes,ondent CSC "e e"sed )PSBs decision and +eld )a*,ale *uiltyISSUE2 .hether the law authorized an a%%eal by the government from an adverse decision of the M$5P NO2 Unde" t+e 'd.inist"ati e Code o% 1#F$, decisions o% t+e )PSB s+all be %inal, e8ce,t only Gt+ose in ol in* dis.issal o" se,a"ation %"o. t+e se" ice !+ic+ .ay be a,,ealed to t+e Co..issionK W+ile it is t"ue t+at t+e CSC does +a e t+e ,o!e" to +ea" and decide ad.inist"ati e cases instituted by o" b"ou*+t be%o"e it di"ectly o" on a,,eal, t+e e8e"cise o% t+e ,o!e" is ?uali%ied by and s+ould be "ead to*et+e" !it+ Sec:# o% E8ecuti e O"de" 4#4, !+ic+ ,"esc"ibes, a.on* ot+e"s t+at G/a0 t+e decision .ust be a,,ealable-K Unde" Section :$ o% t+e 'd.inist"ati e Code, t+e CSC s+all decide on a,,eal all ad.inist"ati e disci,lina"y cases in ol in* t+e i.,osition o%2 /a0 a ,enalty o% sus,ension %o" .o"e t+an 5D days9 /b0 %ine in an a.ount e8ceedin* 5D days sala"y9 /c0 de.otion in "an6 o" sala"y o" t"ans%e"9 o" /d0 "e.o al o" dis.issal %"o. o%%ice&+e )PSB decision did not in ol e dis.issal o" se,a"ation %"o. o%%ice, "at+e", t+e decision e8one"ated ,etitione" and o"de"ed +i. "einstated to +is %o".e" ,osition- &+e )SPB decision !as not a ,"o,e" sub3ect o% a,,eal to t+e CSCSettled is t+e "ule t+at a t"ibunal, boa"d, o" o%%ice" e8e"cisin* 3udicial %unctions acts !it+out 3u"isdiction i% no aut+o"ity +as been con%e""ed by la! to +ea" and decide t+e case=!usin$ and Land Use Re$u at!r. B!ard &=LURB(

Civi Service C!mmissi!n -A%PALE v2 CSC &5'9 SCRA 7<:" '<<5(

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER>

SANDO*AL v. CA+EBA ((%0 SCRA '' (%%(" It is not t+e o"dina"y cou"ts but t+e (ational Bousin* 'ut+o"ity /(B'0 !+ic+ +as e8clusi e 3u"isdiction to +ea" and decide cases o% /a0 unsound "eal estate business ,"actices9 /b0 clai.s in ol in* "e%und and any ot+e" clai.s %iled by subdi ision lot o" condo.iniu. unit buye" a*ainst t+e ,"o3ect o!ne", de elo,e", deale", b"o6e" o" sales.an9 and /c0 cases in ol in* s,eci%ic ,e"%o".ance o% cont"actual and statuto"y obli*ations %iled by buye"s o% subdi ision lot o" condo.iniu. unit a*ainst t+e o!ne", de elo,e", deale", b"o6e" o" sales.an-

Settle.ents Re*ulato"y Co..ission and t+e"ea%te" it !as "e7na.ed as t+e Bousin* and Land Use Re*ulato"y Boa"d /BLURB0>INDS O, AC1ION '2 As t! cause !r f!undati!n &+e distinction bet!een a "eal action and a ,e"sonal action is i.,o"tant %o" t+e ,u",ose o% dete".inin* t+e enue o% t+e action&a( Pers!na Pe"sonal actions a"e t+ose ot+e" t+an "eal actions- /Sec- 4, Rule :0 +,am%les 'ction %o" s,eci%ic ,e"%o".ance 'ction %o" da.a*es to "eal ,"o,e"ty 'ction %o" decla"ation o% t+e nullity o% .a""ia*e 'ction to co.,el .o"t*a*ee to acce,t ,ay.ent o% t+e .o"t*a*e debt and "elease t+e .o"t*a*e &b( Rea 'n action is "eal !+en it a%%ects title to o" ,ossession o% "eal ,"o,e"ty, o" an inte"est t+e"ein- /Sec- 1, Rule :0 &o be a "eal action, it is not enou*+ t+at it deals !it+ "eal ,"o,e"ty- It is i.,o"tant t+at t+e .atte" in liti*ation .ust also in ol e any o% t+e %ollo!in* issues2 /a0 &itle9 /b0 O!ne"s+i,9 /c0 Possession9 /d0 Pa"tition9 /e0 Co"eclosu"e o% .o"t*a*e9 or /%0 'ny inte"est in "eal ,"o,e"ty +,am%les 'ction to "eco e" ,ossession o% "eal ,"o,e"ty ,lus da.a*es /da.a*es is .e"ely incidental0 'ction to annul o" "escind a sale o% "eal ,"o,e"ty

C'C&S2 Estate De elo,e"s and In esto"s Co",o"ation /Estate0 %iled a co.,laint a*ainst (esto" Sando al /Sando al0 in t+e R&C %o" t+e collection o% un,aid install.ents o% a subdi ision lot, ,u"suant to a ,"o.isso"y note, ,lus inte"est- Sando al alle*es t+at +e sus,ended ,ay.ents t+e"eo% because o% t+e %ailu"e o% t+e de elo,e" to de elo, t+e subdi ision ,u"suant to t+ei" a*"ee.ent- &+e R&C "uled in %a o" o% Estate, and o"de"ed Sando al to ,ay' !"it o% e8ecution !as issued !+ic+ t+e"ea%te" beca.e %inal and e8ecuto"ySando al %iled a .otion to acate 3ud*.ent and to dis.iss t+e co.,laint on t+e *"ound t+at t+e R&C +ad no 3u"isdiction o e" t+e sub3ect .atte"- ' .otion %o" "econside"ation o% t+e !"it o% e8ecution !as also %iled by ,etitione"- Estate o,,osed bot+ .otions- R&C denied t+e .otion to acate %o" t+e "eason t+at it is no! beyond t+e 3u"isdiction o% t+e cou"t to do so- ' ne! !"it o% e8ecution !as issuedSando al %iled a ,etition alle*in* t+at t+e R&C co..itted *"a e abuse o% disc"etion since t+e e8clusi e and o"i*inal 3u"isdiction o e" t+e sub3ect7.atte" t+e"eo% is ested !it+ t+e Bousin* and Land Use Re*ulato"y Boa"d /BLURB0 ,u"suant to PD #>$ISSUE2 .hether the ordinary courts have /urisdiction over the collection of un%aid installments regarding a subdivision lot NO2 Unde" Section 1 o% P"esidential Dec"ee (o#>$ t+e (ational Bousin* 'ut+o"ity /(B'0 !as *i en t+e e8clusi e 3u"isdiction to +ea" and decide ce"tain cases o% t+e %ollo!in* natu"e2 /a0 Unsound "eal estate business ,"actices2 /b0 Clai.s in ol in* "e%und and any ot+e" clai.s %iled by subdi ision lot o" condo.iniu. unit buye" a*ainst t+e ,"o3ect o!ne", de elo,e", deale", b"o6e" o" sales.an9 and /c0 Cases in ol in* s,eci%ic ,e"%o".ance o% cont"actual and statuto"y obli*ations %iled by buye"s o% subdi ision lot o" condo.iniu. unit a*ainst t+e o!ne", de elo,e", deale", b"o6e" o" sales.an&+e e8clusi e 3u"isdiction o e" t+e case bet!een t+e ,etitione" and ,"i ate "es,ondent is ested not on t+e R&C but on t+e (B'- &+e (B' !as "e7na.ed Bu.an
)E(DE@, IV'( VIA&OR /4D, 150

52 As t! !b4ect &+e distinctions a"e i.,o"tant /a0 to dete".ine !+et+e" t+e 3u"isdiction o% t+e de%endant is "e?ui"ed, and /b0 to dete".ine t+e ty,e o% su..ons to be e.,loyed &a( In rem 'n action is in rem !+en it is di"ected a*ainst t+e !+ole !o"ld- It is %o" t+e dete".ination o% t+e state o" condition o% a t+in*+,am%les P"obate ,"oceedin* Cadast"al ,"oceedin* &b( In #ers!nam

CIVIL PROCEDURE REVIEWER=

' ,"oceedin* in %ersonam is a ,"oceedin* to en%o"ce ,e"sonal "i*+ts and obli*ations b"ou*+t a*ainst t+e ,e"son and is based on t+e 3u"isdiction o% t+e ,e"sonIts ,u",ose is to i.,ose so.e "es,onsibility o" liability di"ectly u,on t+e ,e"son o% t+e de%endant- In an action in %ersonam, no one ot+e" t+an t+e de%endant is sou*+t to be +eld liable+,am%les 'ction %o" su. o% .oney 'ction %o" da.a*es &c( 8uasi in rem 'n action 3uasi in rem is one !+e"ein an indi idual is na.ed as de%endant and t+e ,u",ose o% t+e ,"oceedin* is to sub3ect +is inte"est t+e"ein to t+e obli*ation o" lien bu"denin* t+e ,"o,e"tySuc+ action deals !it+ t+e status, o!ne"s+i, o" liability o% a ,a"ticula" ,"o,e"ty, but !+ic+ a"e intended to o,e"ate on t+ese ?uestions only as bet!een t+e ,a"ticula" ,a"ties to t+e ,"oceedin*s, and not to asce"tain o" cut7o%% t+e "i*+ts o" inte"ests o% all ,ossible clai.ants(O&E2 &+ese "ules a"e ina,,licable in t+e %ollo!in* cases2 /10 Election cases9 /40 Land "e*ist"ation9 /50 Cadast"al9 /:0 (atu"aliHation9 />0 Insol ency ,"oceedin*s9 /=0 Ot+e" cases not +e"ein ,"o ided %o", e,ce%t by analo*y o" in a su,,leto"y c+a"acte", and !+ene e" ,"acticable and con enient/Sec- :, Rule 10 CO--ENCE-EN1 O, AC1ION &Sec2 9" Ru e '( ' ci il action is co..enced by t+e %ilin* o% t+e o"i*inal co.,laint in cou"t, or on t+e date o% t+e %ilin* o% t+e late" ,leadin* i% an additional de%endant is i.,leaded i""es,ecti e o% !+et+e" t+e .otion %o" its ad.ission, i% necessa"y, is denied by t+e cou"t/!it+ "es,ect only to t+e de%endant late" i.,leaded0 '2 C!nditi!n #recedent 1 .atte"s !+ic+ .ust be co.,lied !it+ be%o"e a cause o% action a"ises W+en a clai. is sub3ect to a condition ,"ecedent, com%liance .ust be alle*ed in t+e ,leadin* Cailu"e to co.,ly !it+ a condition ,"ecedent is an inde,endent ground for a motion to dismiss/Sec- 1 ;3<, Rule 1=0 +,am%les2 &ende" o% ,ay.ent be%o"e consi*nation E8+austion o% ad.inist"ati e "e.edies P"io" "eso"t to ba"an*ay conciliation ,"oceedin*s Ea"nest e%%o"ts to!a"ds a co.,"o.ise '"bit"ation ,"oceedin*s, !+en cont"act so ,"o ides
)E(DE@, IV'( VIA&OR /4D, 150

>atarun$an$ Pambaran$a. &RA ;'?@( Pur%ose* &o "educe t+e nu.be" o% cou"t liti*ations and ,"e ent t+e dete"io"ation o% t+e ?uality o% 3ustice !+ic+ +as been b"ou*+t by t+e indisc"i.inate %ilin* o% cases in t+e cou"ts Only indi iduals s+all be ,a"ties to AB ,"oceedin*s, no 3u"idical entities Pa"ties .ust ,e"sonally a,,ea" in all AB ,"oceedin*s and !it+out assistance o% counsel o" "e,"esentati es, e,ce%t %o" .ino"s and inco.,etents !+o .ay be assisted by t+ei" ne8t7 o%76in, not la!ye"s Conciliation ,"oceedin*s "e?ui"ed is not a 3u"isdictional "e?ui"e.ent (O&E2 Cailu"e to unde"*o t+e ba"an*ay conciliation ,"oceedin*s is non7co.,liance o% a condition ,"ecedent- Bence, a .otion to dis.iss a ci il co.,laint .ay be %iled- /Sec- 1 ;3<, Rule 1=0 BU& t+e cou"t .ay not .otu ,"o,"io dis.iss t+e case %o" %ailu"e to unde"*o conciliationInitiation o% ,"oceedin*s /10 Pay.ent o% a,,"o,"iate %ilin* %ee /40 O"al o" !"itten co.,laint to t+e Punong 5arangay /c+ai".an o% t+e Lu%on0 /50 C+ai".an s+all su..on "es,ondents to a,,ea" t+e ne8t !o"6in* day /:0 )ediation ,"oceedin*s %o" 1> days />0 S+ould t+e c+ai".an %ail in +is .ediation e%%o"ts !it+in said ,e"iod, +e s+all constitute t+e Pang6at 4aga%ag6asundo, /=0 I% no a.icable settle.ent is "eac+ed, t+e c+ai".an s+all issue a ce"ti%ication to %ile action'll a.icable settle.ents s+all be /10 In !"itin*9 /40 In a lan*ua*e o" dialect 6no!n to t+e ,a"ties9 /50 Si*ned by t+e.9 and /:0 'ttested to by t+e lu,on c+ai".an o" t+e ,an*6at c+ai".an, as t+e case .ay beE%%ect &+e a.iable settle.ent and a"bit"ation a!a"d s+all +a e t+e e%%ect o% a %inal 3ud*.ent o% a cou"t u,on e8,i"ation o% 1D days %"o. date t+e"eo%, unless2 /10 Re,udiation o% t+e settle.ent +as been .ade, or /40 Petition to nulli%y t+e a!a"d +as been %iled be%o"e t+e ,"o,e" city o" .unici,al ou"t E8ecution s+all issue u,on e8,i"ation o% 1D days %"o. settle.entLUMBUAN v. RON,UILLO (4)% SCRA 650 !006"

CIVIL PROCEDURE REVIEWER$

W+ile ad.ittedly no %ang6at !as constituted, t+e ,a"ties .et at t+e o%%ice o% t+e Ba"an*ay C+ai".an %o" ,ossible settle.ent- &+e act o% Lu.buan in "aisin* t+e .atte" to t+e 7atarungang Pambarangay and t+e subse?uent con%"ontation o% t+e lessee and lesso" be%o"e t+e Lu%on C+ai".an o" t+e %ang6at is su%%icient co.,liance !it+ t+e ,"econdition %o" %ilin* t+e case in cou"tC'C&S2 Lu.buan /lesso"0 leased a lot to "es,ondent Ron?uillo /lessee0 %o" 5 yea"s at a "ental o% P>DDDI.ont+&+ey a*"eed t+at2 /a0 t+e"e !ill be an annual 1DL inc"ease in "ent %o" t+e ne8t 4 yea"s9 and /b0 t+e leased ,"e.ises s+all be used only %o" lessees %ast%ood business- Ron?uillo %ailed to abide by t+e conditions, and "e%used to ,ay o" acate t+e leased ,"e.ises des,ite Lu.buans "e,eated e"bal de.andsLu.buan "e%e""ed t+e .atte" to t+e Ba"an*ay C+ai".ans O%%ice but no a.icable settle.ent !as "eac+ed- &+e ba"an*ay c+ai".an issued a Ce"ti%icate to Cile 'ction- Lu.buan %iled an action %o" Unla!%ul Detaine" !it+ )e&C o% )anila !+ic+ o"de"ed "es,ondent Ron?uillo to acate t+e leased ,"e.ises and to ,ay P:=,DDD as un,aid "entalsR&C set aside t+e )e&C decision and di"ected t+e ,a"ties to *o bac6 to t+e Lu,on C+ai".an o" Punon* Ba"an*ay %o" %u"t+e" ,"oceedin*s and to co.,ly st"ictly !it+ t+e condition t+at s+ould t+e ,a"ties %ail to "eac+ an a.icable settle.ent, t+e enti"e case !ill be "e.anded to t+e )e&C %o" it to decide t+e case ane!&+e C' "e e"sed t+e R&C and o"de"ed t+e dis.issal o% t+e e3ect.ent case, "ulin* t+at !+en a co.,laint is ,"e.atu"ely instituted, as !+en t+e .andato"y .ediation and conciliation in t+e ba"an*ay le el +ad not been co.,lied !it+, t+e cou"t s+ould dis.iss t+e case and not 3ust "e.and t+e "eco"ds to t+e cou"t o% o"i*in so t+at t+e ,a"ties .ay *o t+"ou*+ t+e ,"e"e?uisite ,"oceedin*sISSUE2 .hether the CA %ro%erly dismissed com%laint for failure of the %arties to com%ly with the mandatory mediation and conciliation %roceedings in the barangay level NO2 It s+ould be noted t+at alt+ou*+ no %ang6at !as %o".ed since no a.icable settle.ent !as "eac+ed by t+e ,a"ties be%o"e t+e Aata"un*an* Pa.ba"an*ay, t+e"e !as substantial co.,liance !it+ Section :14/a0 o% R-'- $1=DW+ile ad.ittedly no %ang6at !as constituted, t+e ,a"ties .et at t+e o%%ice o% t+e Ba"an*ay C+ai".an %o" ,ossible settle.ent- &+e"eby, t+e act o% ,etitione" Lu.buan in "aisin* t+e .atte" to t+e Aata"un*an* Pa.ba"an*ay and t+e subse?uent con%"ontation o% t+e lessee and lesso" be%o"e t+e Lu%on C+ai".an o" t+e %ang6at is su%%icient co.,liance !it+ t+e ,"econdition %o" %ilin* t+e case in cou"t- &+is is t"ue not!it+standin* t+e .andate o% Section :1D/b0 o% t+e sa.e la! t+at t+e Ba"an*ay C+ai".an s+all constitute a %ang6at i% +e %ails in +is .ediation e%%o"tsSection :1D/b0 s+ould be const"ued to*et+e" !it+ Section :14, as !ell as t+e ci"cu.stances obtainin* in and ,eculia" to t+e case- On t+is sco"e, it is si*ni%icant t+at t+e Ba"an*ay C+ai".an o" Punong Ba"an*ay is +e"sel% t+e C+ai".an o% t+e Lu,on unde" t+e Local Eo e"n.ent Code)E(DE@, IV'( VIA&OR /4D, 150

52 Pa.ment !f fi in$ fee Pay.ent o% t+e ,"esc"ibed doc6et %ee ests a t"ial cou"t !it+ 3u"isdiction o e" t+e sub3ect .atte" o" natu"e o% t+e action- &+e cou"t ac?ui"es 3u"isdiction u%on %ayment o% t+e co""ect doc6et %ees 'll co.,laints, ,etitions, ans!e"s, and si.ila" ,leadin*s .ust s,eci%y t+e a.ount o% da.a*es bein* ,"ayed %o", bot+ in t+e body o% t+e ,leadin*s and in t+e assessment of the filing fees Manchester v# CA2 'ny de%ect in t+e o"i*inal ,leadin* "esultin* in unde",ay.ent o% t+e doc6et %ee cannot be cu"ed by a.end.ent, and %o" all le*al ,u",oses, t+e cou"t ac?ui"ed no 3u"isdiction in suc+ case BU& non,ay.ent o% %ilin* %ees does not automatically cause t+e dis.issal o% t+e case&+e %ee .ay be ,aid !it+in t+e a,,licable ,"esc"i,ti e o" "e*le.enta"y ,e"iodHEIRS OF BERTULDO HINOG v. MELICOR (455 SCRA 460 !005" (on7,ay.ent at t+e ti.e o% %ilin* does not auto.atically cause t+e dis.issal o% t+e case, as lon* as t+e %ee is ,aid !it+in t+e a,,licable ,"esc"i,ti e o" "e*le.enta"y ,e"iod, .o"e so !+en t+e ,a"ty in ol ed de.onst"ates a !illin*ness to abide by t+e "ules ,"esc"ibin* suc+ ,ay.ent- &+us, !+en insu%%icient %ilin* %ees !e"e initially ,aid by t+e ,lainti%%s and t+e"e !as no intention to de%"aud t+e *o e"n.ent, t+e Manchester rule does not a,,lyC'C&S2 Res,ondents %iled a co.,laint a*ainst Be"tuldo %o" "eco e"y o% o!ne"s+i, o% t+e ,"e.ises leased by t+e latte"- Be"tuldo alle*ed o!ne"s+i, o% t+e ,"o,e"ty by i"tue o% a Deed o% 'bsolute Sale- Be"tuldo died !it+out co.,letin* +is e idence du"in* t+e di"ect e8a.ination'tty- Petalco"in "e,laced t+e o"i*inal counsel and %iled a .otion to e8,un*e t+e co.,laint %"o. t+e "eco"d and nulli%y all cou"t ,"oceedin*s on t+e *"ound t+at ,"i ate "es,ondents %ailed to s,eci%y in t+e co.,laint t+e a.ount o% da.a*es clai.ed as needed to ,ay t+e co""ect doc6et %ees, and t+at unde" Manchester doct"ine, non7 ,ay.ent o% t+e co""ect doc6et %ee is 3u"isdictionalISSUE2 .hether the non%ayment of the correct doc6et fee is /urisdictional in the %resent case NO2 W+ile t+e ,ay.ent o% t+e ,"esc"ibed doc6et %ee is a 3u"isdictional "e?ui"e.ent, e en its non7,ay.ent at t+e ti.e o% %ilin* does not auto.atically cause t+e dis.issal o% t+e case, as lon* as t+e %ee is ,aid !it+in t+e a,,licable ,"esc"i,ti e o" "e*le.enta"y ,e"iod, .o"e so !+en t+e ,a"ty in ol ed de.onst"ates a !illin*ness to abide by t+e "ules ,"esc"ibin* suc+ ,ay.ent- &+us, !+en insu%%icient %ilin* %ees !e"e initially ,aid by t+e ,lainti%%s and t+e"e !as no intention to de%"aud t+e *o e"n.ent, t+e Manchester rule does not a,,lySUN INSURANCE OFFICE v. ASUNCION (('0 SCRA !'4 (%)%"

CIVIL PROCEDURE REVIEWERF

W+e"e t+e %ilin* o% t+e initiato"y ,leadin* is not acco.,anied by ,ay.ent o% t+e doc6et %ee, t+e cou"t .ay allo! ,ay.ent o% t+e %ee !it+in a "easonable ti.e but in no case beyond t+e a,,licable ,"esc"i,ti e o" "e*le.enta"y ,e"iod- W+e"e t+e t"ial cou"t ac?ui"es 3u"isdiction o e" a clai. by t+e %ilin* o% t+e ,leadin* and ,ay.ent o% ,"esc"ibed %ilin* %ees but t+e 3ud*.ent a!a"ds a clai. not s,eci%ied in t+e ,leadin*, o" i% s,eci%ied t+e sa.e +as been le%t %o" t+e cou"ts dete".ination, t+e additional %ilin* %ee s+all constitute a lien on t+e 3ud*.ent- It s+all be t+e "es,onsibility o% t+e Cle"6 o% Cou"t o" +is duly aut+o"iHed de,uty to en%o"ce said lien and assess and collect t+e additional %ee-

aut+o"iHed de,uty to en%o"ce said lien and assess and collect t+e additional %ee&+e sa.e "ule a,,lies to ,e".issi e counte"clai.s, t+i"d ,a"ty clai.s and si.ila" ,leadin*s, !+ic+ s+all not be conside"ed %iled until and unless t+e %ilin* %ee ,"esc"ibed t+e"e%o"e is ,aid-

CAUSE O, AC1ION &RULE 5( Cause !f Acti!n ' cause o% action is t+e act o" o.ission by !+ic+ a ,a"ty iolates t+e "i*+ts o% anot+e"- /Sec- 4, Rule 40 E e"y o"dina"y ci il action .ust be based on a cause o% action- /Sec- 1, Rule 40 Ele.ents2 /10 ' le*al "i*+t in %a o" o% t+e ,lainti%%9 /40 ' co""elati e obli*ation on t+e ,a"t o% t+e na.ed de%endant to "es,ect o" to not iolate suc+ "i*+t9 and /50 'ct o" o.ission on t+e ,a"t o% de%endant in iolation o% t+e "i*+t o% t+e ,lainti%%, or constitutin* a b"eac+ o% t+e obli*ation o% t+e de%endant to t+e ,lainti%% %o" !+ic+ t+e latte" .ay .aintain an action %o" "eco e"y o% da.a*es o" ot+e" a,,"o,"iate "elie%Distin$uis+ed fr!m ri$+t !f acti!n Cause o% action is t+e "eason %o" b"in*in* an action, t+e %o".al state.ent o% o,e"ati e %acts *i in* "ise to a "e.edial "i*+t, and is *o e"ned by ,"ocedu"al la!- ' "i*+t o% action is t+e "e.edy %o" b"in*in* an action and is solely de,endent on substanti e la!Ri$+t !f acti!n" e ements /10 &+e"e .ust be a *ood cause9 /40 ' co.,liance !it+ all t+e conditions ,"ecedent to t+e b"in*in* o% t+e action9 and /50 &+e action .ust be instituted by t+e ,"o,e" ,a"tyS# ittin$ a cause !f acti!n S,littin* o% cause o% action is t+e act o% di idin* a sin*le o" indi isible cause o% action into se e"al ,a"ts o" clai.s and b"in*in* se e"al actions t+e"eon ' ,a"ty .ay not institute .o"e t+an one suit %o" a sin*le cause o% action- /Sec- 5, Rule 40 I% t!o o" .o"e suits a"e instituted on t+e basis o% t+e sa.e cause o% action, t+e %ilin* o% one o" a 3ud*.ent u,on t+e .e"its in any one is a ailable as a *"ound %o" t+e dis.issal o% t+e ot+e"s- /Sec:, Rule 40 ',,lies also to counte"clai.s and c"oss7clai.s+,am%les $ingle cause of action (Cannot be filed se%arately" ' suit %o" t+e "eco e"y o% land and a se,a"ate suit to "eco e" t+e %"uits 'ction to "eco e" da.a*es to ,e"son and action %o" da.a*es to sa.e ,e"sons ca"

C'C&S Sun Insu"ance O%%ice, Ltd- /SIOL0 %iled a co.,laint a*ainst Uy %o" t+e consi*nation o% a ,"e.iu. "e%und on a %i"e insu"ance ,olicy !it+ a ,"aye" %o" t+e 3udicial decla"ation o% its nullity- Uy !as decla"ed in de%ault %o" %ailu"e to %ile t+e "e?ui"ed ans!e" !it+in t+e "e*le.enta"y ,e"iod- Uy %iled a co.,laint in t+e R&C %o" t+e "e%und o% ,"e.iu.s and t+e issuance o% a !"it o% ,"eli.ina"y attac+.ent initially a*ainst ,etitione" SIOL, but t+e"ea%te" included P+ili,,s and Wa"by as additional de%endants- &+e co.,laint sou*+t t+e ,ay.ent o% actual, co.,ensato"y, .o"al, e8e.,la"y and li?uidated da.a*es, atto"neyMs %ees, e8,enses o% liti*ation and costs o% t+e suit- 'lt+ou*+ t+e ,"aye" in t+e co.,laint did not ?uanti%y t+e a.ount o% da.a*es sou*+t said a.ount .ay be in%e""ed %"o. t+e body o% t+e co.,laint to be about P>D,DDD,DDDUy ,aid only P41D-DD as doc6et %ee, !+ic+ ,"o.,ted ,etitione"sM counsel to "aise +is ob3ection %o" unde"7assess.ent o% doc6et %eesPetitione"s alle*e t+at !+ile Uy +ad ,aid P1F4,F4:-#D as doc6et %ee, and conside"in* t+at t+e total a.ount sou*+t in t+e a.ended and su,,le.ental co.,laint is P=:,=D1,=45-$D, t+e doc6et %ee t+at s+ould be ,aid by ,"i ate "es,ondent is P4>$,F1D-:#, .o"e o" less- (ot +a in* ,aid t+e sa.e, ,etitione"s contend t+at t+e co.,laint s+ould be dis.issed and all incidents a"isin* t+e"e%"o. s+ould be annulledISSUE2 .hether or not a court ac3uires /urisdiction over case when the correct and %ro%er doc6et fee has not yet been %aid 6ES2 W+e"e t+e %ilin* o% t+e initiato"y ,leadin* is not acco.,anied by ,ay.ent o% t+e doc6et %ee, t+e cou"t .ay allo! ,ay.ent o% t+e %ee !it+in a "easonable ti.e but in no case beyond t+e a,,licable ,"esc"i,ti e o" "e*le.enta"y ,e"iod- W+e"e t+e t"ial cou"t ac?ui"es 3u"isdiction o e" a clai. by t+e %ilin* o% t+e a,,"o,"iate ,leadin* and ,ay.ent o% t+e ,"esc"ibed %ilin* %ee but, subse?uently, t+e 3ud*.ent a!a"ds a clai. not s,eci%ied in t+e ,leadin*, o" i% s,eci%ied t+e sa.e +as been le%t %o" dete".ination by t+e cou"t, t+e additional %ilin* %ee t+e"e%o"e s+all constitute a lien on t+e 3ud*.ent- It s+all be t+e "es,onsibility o% t+e Cle"6 o% Cou"t o" +is duly

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER#

'ction %o" "eco e"y o% ta8es and action to de.and su"c+a"*es "esultin* %"o. delin?uency in ,ay.ent o% said ta8es 'ction to collect debt and to %o"eclose .o"t*a*e 'ction %o" ,a"tition and action %o" t+e "eco e"y o% co.,ensation on t+e i.,"o e.ents 'ction %o" annul.ent o% sale and action to "eco e" di idends

Distinct causes of action (se%arate filing allowed" 'ction %o" "econ eyance o% title o e" ,"o,e"ty and action %o" %o"cible ent"y o" unla!%ul detaine" 'ction %o" da.a*es to a ca" in a e+icula" accident, and anot+e" action %o" da.a*es %o" in3u"ies to a ,assen*e" ot+e" t+an t+e o!ne" o% t+e ca" 'ction to collect loan and action %o" "escission o% .o"t*a*e 'ction based on b"eac+ o% cont"act o% ca""ia*e and action based on ?uasi7delict

is a bar to the cause of action for breach of contract of carriage 6ES2 ' sin*le act o" o.ission can be iolati e o% a"ious "i*+ts at t+e sa.e ti.e, as !+en t+e act constitutes a 3u"idical a iolation o% se e"al se,a"ate and distinct le*al obli*ations- Bo!e e", !+e"e t+e"e is only one delict o" !"on*, t+e"e is but a sin*le cause o% action "e*a"dless o% t+e nu.be" o% "i*+ts t+at .ay +a e been iolated belon*in* to one ,e"son- (e e"t+eless, i% only one in3u"y "esulted %"o. se e"al !"on*%ul acts, only one cause o% action a"ises&+e"e is no ?uestion t+at ,etitione" sustained a sin*le in3u"y on +is ,e"son, !+ic+ ested in +i. a sin*le cause o% action, albeit !it+ t+e co""elati e "i*+ts o% action a*ainst t+e di%%e"ent "es,ondents t+"ou*+ t+e a,,"o,"iate "e.edies allo!ed by la!- Only one cause o% action !as in ol ed alt+ou*+ t+e bases o% "eco e"y in o6ed by ,etitione" a*ainst t+e de%endants t+e"ein !e"e not necessa"ily identical since t+e "es,ondents !e"e not identically ci"cu.stanced-

DEL ROSARIO v. FEBTC (5&' SCRA 5'( !00'" -OSE#H v. BAUTISTA (('0 SCRA 540 (%)%" W+e"e t+e"e is only one delict o" !"on*, t+e"e is but a sin*le cause o% action "e*a"dless o% t+e nu.be" o% "i*+ts t+at .ay +a e been iolated belon*in* to one ,e"son(e e"t+eless, i% only one in3u"y "esulted %"o. se e"al !"on*%ul acts, only one cause o% action a"isesIt is !ell establis+ed, +o!e e", t+at a ,a"ty cannot, by a"yin* t+e %o". o% action o" ado,tin* a di%%e"ent .et+od o% ,"esentin* +is case, o" by ,leadin* 3usti%iable ci"cu.stances as +e"ein ,etitione"s a"e doin*, esca,e t+e o,e"ation o% t+e ,"inci,le t+at one and t+e sa.e cause o% action s+all not be t!ice liti*atedC'C&S2 PDCP e8tended a P:-: .illion loan to D'&ICOR, !+ic+ t+at D'&ICOR s+all ,ay2 a se" ice %ee o% 1L ,e" annu. /late" inc"eased =L ,e" annu.0 on t+e outstandin* balance9 14L ,e" annu. inte"est9 and ,enalty c+a"*es 4L ,e" .ont+ in case o% de%ault- &+e loans !e"e secu"ed by "eal estate .o"t*a*es o e" si8 /=0 ,a"cels o% land and c+attel .o"t*a*es o e" .ac+ine"y and e?ui,.entD'&ICOR ,aid a total o% P5 .illion to PDCP, !+ic+ t+e latte" a,,lied to inte"est, se" ice %ees and ,enalty c+a"*es- &+is le%t t+e. !it+ an outstandin* balance o% P1D .illion acco"din* to PDCPs co.,utationD'&ICOR %iled a co.,laint a*ainst PDCP %o" iolation o% t+e Usu"y La! and annul.ent o% cont"act and da.a*es- &+e CCI dis.issed t+e co.,laint- &+e I'C set aside t+e dis.issal and decla"ed oid and o% no e%%ect t+e sti,ulation o% inte"est in t+e loan a*"ee.ent- PDCP a,,ealed t+e I'CMs decision to SCIn t+e inte"i., PDCP assi*ned a ,o"tion o% its "ecei ables %"o. D'&ICOR to CEB&C %o" o% P>-: )CEB&C and D'&ICOR, in a )O', a*"eed to P=-: .illion as %ull settle.ent o% t+e "ecei ablesSC a%%i".ed in toto t+e decision o% t+e I'C, nulli%yin* t+e sti,ulation o% inte"ests- D'&ICOR t+us %iled a Co.,laint %o" su. o% .oney a*ainst PDCP and CEB&C to "eco e" t+e e8cess ,ay.ent !+ic+ t+ey co.,uted to be P>-5 .illion- R&C o"de"ed PDCP to ,ay ,etitione"s P:-D5> .illion, to bea" inte"est at 14L ,e" annu. until %ully ,aid9 to "elease o" cancel t+e .o"t*a*es

C'C&S2 Jose,+, ,etitione", boa"ded Pe"eHs ca"*o t"uc6 !it+ a load o% li estoc6- 't t+e +i*+!ay, t+e t"uc6 d"i e" o e"too6 a t"icycle but +it a .an*o t"ee !+en a ,ic67u, t"uc6 t"ied to o e"ta6e +i. at t+e sa.e ti.e- &+is "esulted to t+e bone %"actu"e o% t+e ,etitione"s le*Petitione" %iled a co.,laint %o" da.a*es a*ainst Pe"eH, as o!ne", based on a b"eac+ o% cont"act o% ca""ia*e, and a*ainst Sioson and Villanue a, t+e o!ne" and d"i e" o% t+e ,ic67u, t"uc6, based on ?uasi7delict- Petitione" i.,leaded Pa*a"i*an and Va"*as, since +e could not asce"tain !+o t+e "eal o!ne"s o% t+e ,ic67u, t"uc6 and t+e ca"*o t"uc6 !e"e- Pe"eH %iled a c"oss7clai. a*ainst t+e ot+e" "es,ondents %o" inde.nity, in t+e e ent t+at s+e is o"de"ed to ,ay&+e ot+e" "es,ondents ,aid ,etitione"Ms clai. %o" in3u"ies, so t+ey !e"e "eleased %"o. liability- &+ey also ,aid Pe"eH %o" +e" clai. o% da.a*es- &+ey t+e"ea%te" %iled a )otion to E8one"ate and E8clude t+e.sel es since t+ey e al"eady ,aid Jose,+ by !ay o% a.icable settle.ent and Pe"eHs clai. %o" da.a*es- Pe"eH %iled an O,,osition to t+e .otion since t+e "elease o% clai. e8ecuted by ,etitione" in %a o" o% t+e ot+e" "es,ondents alle*edly inu"ed to +is bene%it- R&C dis.issed t+e caseISSUE2 .hether the /udgment on the com%romise agreement under the cause of action based on 3uasi2delict
)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER1D

and to "etu"n t+e co""es,ondin* titles to ,etitione"s9 and to ,ay t+e costs o% t+e suitR&C dis.issed t+e co.,laint a*ainst CEB&C %o" lac6 o% cause o% action since t+e )O' bet!een ,etitione"s and CEB&C !as not sub3ect to SC decision, CEB&C not bein* a ,a"ty t+e"etoPetitione"s and PDCP a,,ealed to t+e C', !+ic+ +eld t+at ,etitione"sM outstandin* obli*ation /dete".ined to be only P1-: .illion0 could not be inc"eased o" dec"eased by any act o% t+e c"edito" PDCP, and +eld t+at !+en PDCP assi*ned its "ecei ables, t+e a.ount ,ayable to it by D'&ICOR !as t+e sa.e a.ount ,ayable to assi*nee CEB&C, i""es,ecti e o% any sti,ulation t+at PDCP and CEB&C .i*+t +a e ,"o ided in t+e Deed o% 'ssi*n.ent, D'&ICOR not +a in* been a ,a"ty t+e"eto, +ence, not bound by its te".sBy t+e ,"inci,le o% solutio indebiti, t+e C' +eld t+at CEB&C !as bound to "e%und D'&ICOR t+e e8cess ,ay.ent o% P> .illion it "ecei ed9 and t+at CEB&C could "eco e" %"o. PDCP t+e P:-D5> .illion %o" t+e o e",ay.ent %o" t+e assi*ned "ecei ables- But since D'&ICOR clai.ed in its co.,laint only o% P#=>,DDD %"o. CEB&C, t+e latte" !as o"de"ed to ,ay t+e. only t+at a.ountPetitione"s %iled be%o"e t+e R&C anot+e" Co.,laint a*ainst CEB&C to "eco e" t+e balance o% t+e e8cess ,ay.ent o% P:-55> .illion&+e t"ial cou"t dis.issed ,etitione"sM co.,laint on t+e *"ound o% res /udicata and s,littin* o% cause o% action- It "ecalled t+at ,etitione"s +ad %iled an action to "eco e" t+e alle*ed o e",ay.ent bot+ %"o. PDCP and CEB&C and t+at t+e C' Decision, o"de"in* PDCP to "elease and cancel t+e .o"t*a*es and CEB&C to ,ay P#=>,DDD !it+ inte"est beca.e %inal and e8ecuto"yISSUE2 .hether F+54C can be held liable for the balance of the over%ayment of P8#''9 million %lus interest which %etitioners %reviously claimed against PDCP in a %reviously decided case NO2 ' cause o% action is t+e delict o" t+e !"on*%ul act o" o.ission co..itted by t+e de%endant in iolation o% t+e ,"i.a"y "i*+ts o% t+e ,lainti%%- In t+e t!o cases, ,etitione"s i.,uted to CEB&C t+e sa.e alle*ed !"on*%ul act o% .ista6enly "ecei in* and "e%usin* to "etu"n an a.ount in e8cess o% !+at !as due it in iolation o% t+ei" "i*+t to a "e%und- &+e sa.e %acts and e idence ,"esented in t+e %i"st case !e"e t+e e"y sa.e %acts and e idence t+at ,etitione"s ,"esented in t+e second case' ,a"ty cannot, by a"yin* t+e %o". o% action o" ado,tin* a di%%e"ent .et+od o% ,"esentin* +is case, o" by ,leadin* 3usti%iable ci"cu.stances as +e"ein ,etitione"s a"e doin*, esca,e t+e o,e"ation o% t+e ,"inci,le t+at one and t+e sa.e cause o% action s+all not be t!ice liti*atedSC +eld t+at to allo! t+e "e7liti*ation o% an issue t+at !as %inally settled as bet!een ,etitione"s and CEB&C in t+e ,"io" case is to allo! t+e s,littin* o% a cause o% action, a *"ound %o" dis.issal unde" Section : o% Rule 4 o% t+e Rules o% Cou"t&+is "ule ,"osc"ibes a ,a"ty %"o. di idin* a sin*le o" indi isible cause o% action into se e"al ,a"ts o" clai.s and institutin* t!o o" .o"e actions based on itBecause t+e ,lainti%% cannot di ide t+e *"ounds %o"
)E(DE@, IV'( VIA&OR /4D, 150

"eco e"y, +e is .andated to set %o"t+ in +is %i"st action e e"y *"ound %o" "elie% !+ic+ +e clai.s to e8ist and u,on !+ic+ +e "elies9 +e cannot be ,e".itted to "ely u,on t+e. by ,iece.eal in successi e actions to "eco e" %o" t+e sa.e !"on* o" in3u"yBot+ t+e "ules on res /udicata and s,littin* o% causes o% action a"e based on t+e saluta"y ,ublic ,olicy a*ainst unnecessa"y .ulti,licity o% suits1interest rei%ublicae ut sit finis litium- Re7liti*ation o% .atte"s al"eady settled by a cou"tMs %inal 3ud*.ent .e"ely bu"dens t+e cou"ts and t+e ta8,aye"s, c"eates uneasiness and con%usion, and !astes aluable ti.e and ene"*y t+at could be de oted to !o"t+ie" cases-

#ROGRESSI*E DE*ELO#MENT COR#. v. CA (&0( SCRA &6' (%%(" W+en a sin*le delict o" !"on* is co..itted 1 li6e t+e unla!%ul ta6in* o" detention o% t+e ,"o,e"ty o% anot+e" 1 t+e"e is but one sin*le cause o% action "e*a"dless o% t+e nu.be" o% "i*+ts t+at .ay +a e been iolated, and all suc+ "i*+ts s+ould be alle*ed in a sin*le co.,laint as constitutin* one sin*le cause o% action- In a %o"cible ent"y case, t+e "eal issue is t+e ,+ysical ,ossession o% t+e "eal ,"o,e"ty- &+e ?uestion o% da.a*es is .e"ely seconda"y o" incidental, so .uc+ so t+at t+e a.ount t+e"eo% does not a%%ect t+e 3u"isdiction o% t+e cou"t- In ot+e" !o"ds, t+e unla!%ul act o% a de%o"ciant in ta6in* ,ossession o% a ,iece o% land by .eans o% %o"ce and inti.idation a*ainst t+e "i*+ts o% t+e ,a"ty actually in ,ossession t+e"eo% is a delict o" !"on*, o" a cause o% action t+at $ives rise t! tw! &5( remedies , na.ely, t+e "eco e"y o% ,ossession and "eco e"y o% da.a*es a"isin* %"o. t+e loss o% ,ossession, but !n . t! !ne acti!n- Co" ob ious "easons, b!t+ remedies cann!t be t+e sub4ect !f tw! &5( se#arate and inde#endent acti!ns, one %o" "eco e"y o% ,ossession only, and t+e ot+e", %o" t+e "eco e"y o% da.a*es- &+at !ould ine itably lead to !+at is te".ed in la! as s,littin* u, a cause o% action-

C'C&S2 PDC leased to Westin a ,a"cel o% land !it+ a co..e"cial buildin* %o" # yea"s and 5 .ont+s, !it+ a .ont+ly "ental o% a,,"o8i.ately P=DD,DDD- Westin %ailed to ,ay "entals des,ite se e"al de.ands- &+e a""ea"a*es a.ounted to PF,=)- PDC "e,ossessed t+e leased ,"e.ises, in ento"ied t+e .o able ,"o,e"ties %ound !it+in and o!ned by Westin, and sc+eduled a ,ublic auction %o" t+e sale o% t+e .o ables, !it+ notice to WestinWestin %iled a %o"cible ent"y case !it+ t+e )e&C a*ainst PDC %o" !it+ da.a*es and a ,"aye" %o" a te.,o"a"y "est"ainin* o"de" andIo" !"it o% ,"eli.ina"y in3unction- ' &RO en3oined PDC %"o. sellin* WestinMs ,"o,e"ties't t+e continuation o% t+e +ea"in*, t+e ,a"ties a*"eed, a.on* ot+e"s, t+at Westin !ould de,osit !it+ t+e

CIVIL PROCEDURE REVIEWER11

PCIB /Ban60 PF) to *ua"antee ,ay.ent o% its bac6 "entals- Westin did not co.,ly !it+ its unde"ta6in*, and instead, !it+ t+e %o"cible ent"y case still ,endin*, Westin instituted anot+e" action %o" da.a*es a*ainst PDC !it+ t+e R&C&+e %o"cible ent"y case +ad as its cause o% action t+e alle*ed unla!%ul ent"y by PDC into t+e leased ,"e.ises out o% !+ic+ t+"ee /50 "elie%s a"ose2 /a0 t+e "esto"ation by PDC o% ,ossession o% t+e leased ,"e.ises to t+e lessee9 /b0 t+e clai. %o" actual da.a*es due to losses su%%e"ed by Westin9 and, /c0 t+e clai. %o" atto"neys %ees and cost o% suitOn t+e ot+e" +and, t+e co.,laint %o" da.a*es ,"ays %o" a .oneta"y a!a"d consistin* o% .o"al and e8e.,la"y da.a*es9 actual da.a*es and co.,ensato"y da.a*es "e,"esentin* un"ealiHed ,"o%its9 and, atto"neyMs %ees and costs, all based on t+e alle*ed %o"cible ta6eo e" o% t+e leased ,"e.ises by PDCPDC %iled a .otion to dis.iss t+e da.a*e suit on t+e *"ound o% litis %endencia and %o"u. s+o,,in*- &+e R&C, instead o% "ulin* on t+e .otion, a"c+i ed t+e case ,endin* t+e outco.e o% t+e %o"cible ent"y caseWestin %iled !it+ t+e R&C an a.ended co.,laint %o" da.a*es, !+ic+ !as *"anted- It also %iled an U"*ent E87Pa"te )otion %o" t+e Issuance o% a &RO and )otion %o" t+e E"ant o% a P"eli.ina"y P"o+ibito"y and P"eli.ina"y )andato"y In3unction, !+ic+ !e"e all *"antedPDCs .otion to dis.iss !as denied&+us, PDC %iled !it+ t+e C' a s,ecial ci il action %o" certiorari and ,"o+ibition- But t+e C' dis.issed t+e ,etition- It cla"i%ied t+at since t+e da.a*es ,"ayed %o" in t+e a.ended co.,laint !it+ t+e R&C !e"e t+ose caused by t+e alle*ed +i*+7+anded .anne" !it+ !+ic+ PDC "eac?ui"ed ,ossession o% t+e leased ,"e.ises and t+e sale o% WestinMs .o ables %ound t+e"ein, t+e R&C and not t+e )e&C +ad 3u"isdiction o e" t+e action o% da.a*esISSUE2 .hether .estin may institute a se%arate suit for damages with the !4C after having instituted an action for forcible entry with damages with the Me4C NO2 Sec- 1 o% Rule $D o% t+e Rules o% Cou"t ,"o ides t+at all cases %o" %o"cible ent"y o" unla!%ul detaine" s+all be %iled be%o"e t+e )&C !+ic+ s+all include not only t+e ,lea %o" "esto"ation o% ,ossession but also all clai.s %o" da.a*es and costs a"isin* t+e"e%"o.- Ot+e"!ise e8,"essed, no clai. %o" da.a*es a"isin* out o% %o"cible ent"y o" unla!%ul detaine" .ay be %iled se,a"ately and inde,endently o% t+e clai. %o" "esto"ation o% ,ossessionUnde" Sec2 7 !f Ru e 5 o% t+e Re ised Rules o% Cou"t, as a.ended, a ,a"ty .ay not institute .o"e t+an one suit %o" a sin*le cause o% action- Unde" Sec2 A !f t+e same Ru e, i% t!o o" .o"e suits a"e instituted on t+e basis o% t+e sa.e cause o% action, t+e %ilin* o% one o" a 3ud*.ent u,on t+e .e"its in any one is a ailable as a *"ound %o" t+e dis.issal o% t+e ot+e" o" ot+e"sWestinMs cause o% action in t+e %o"cible ent"y case and in t+e suit %o" da.a*es is t+e alle*ed ille*al "eta6in* o% ,ossession o% t+e leased ,"e.ises by PDC %"o. !+ic+ all le*al "elie%s a"ise- Si.,ly stated, t+e "esto"ation o% ,ossession and de.and %o" actual da.a*es in t+e case be%o"e t+e )e&C and t+e de.and %o" da.a*es !it+ t+e R&C bot+ a"ise %"o. t+e sa.e cause o% action, i-e-, t+e
)E(DE@, IV'( VIA&OR /4D, 150

%o"cible ent"y by PDC into t+e least ,"e.ises- &+e ot+e" clai.s %o" .o"al and e8e.,la"y da.a*es cannot succeed conside"in* t+at t+ese s,"un* %"o. t+e .ain incident bein* +ea"d be%o"e t+e )e&C- Ju"is,"udence says t+at !+en a sin*le delict o" !"on* is co..itted 1 li6e t+e unla!%ul ta6in* o" detention o% t+e ,"o,e"ty o% t+e anot+e" 1 t+e"e is but one sin*le cause o% action "e*a"dless o% t+e nu.be" o% "i*+ts t+at .ay +a e been iolated, and all suc+ "i*+ts s+ould be alle*ed in a sin*le co.,laint as constitutin* one sin*le cause o% action- In a %o"cible ent"y case, t+e "eal issue is t+e ,+ysical ,ossession o% t+e "eal ,"o,e"ty- &+e ?uestion o% da.a*es is .e"ely seconda"y o" incidental, so .uc+ so t+at t+e a.ount t+e"eo% does not a%%ect t+e 3u"isdiction o% t+e cou"t- In ot+e" !o"ds, t+e unla!%ul act o% a de%o"ciant in ta6in* ,ossession o% a ,iece o% land by .eans o% %o"ce and inti.idation a*ainst t+e "i*+ts o% t+e ,a"ty actually in ,ossession t+e"eo% is a delict o" !"on*, o" a cause o% action t+at *i es "ise to t!o /40 "e.edies, na.ely, t+e "eco e"y o% ,ossession and "eco e"y o% da.a*es a"isin* %"o. t+e loss o% ,ossession, but only to one action- Co" ob ious "easons, bot+ "e.edies cannot be t+e sub3ect o% t!o /40 se,a"ate and inde,endent actions, one %o" "eco e"y o% ,ossession only, and t+e ot+e", %o" t+e "eco e"y o% da.a*es- &+at !ould ine itably lead to !+at is te".ed in la! as s,littin* u, a cause o% actionW+at t+en is t+e e%%ect o% t+e dis.issal o% t+e ot+e" actionN Since t+e "ule is t+at all suc+ "i*+ts s+ould be alle*ed in a sin*le co.,laint, it *oes !it+out sayin* t+at t+ose not t+e"ein included cannot be t+e sub3ect o% subse?uent co.,laints %o" t+ey a"e ba""ed %o"e e"- I% a suit is b"ou*+t %o" a ,a"t o% a clai., a 3ud*.ent obtained in t+at action ,"ecludes t+e ,lainti%% %"o. b"in*in* a second action %o" t+e "esidue o% t+e clai., not!it+standin* t+at t+e second %o". o% action is not identical !it+ t+e %i"st o" di%%e"ent *"ounds %o" "elie% a"e set %o" t+e second suit- &+is ,"inci,le not only e.b"aces !+at !as actually dete".ined, but also e8tends to e e"y .atte" !+ic+ t+e ,a"ties .i*+t +a e liti*ated in t+e case- &+is is !+y t+e le*al basis u,on !+ic+ Westin anc+o"ed its second clai. %o" da.a*es, i-e-, '"t- 1=># in "elation to '"t- 1=>: o% t+e Ci il Code, not ot+e"!ise "aised and cited by Westin in t+e %o"cible ent"y case, cannot be used as 3usti%ication %o" t+e second suit %o" da.a*esCGR COR#. *. TRE.ES (5!! SCRA '65 !00'" Petitione"s %ilin* o% an inde,endent action %o" da.a*es *"ounded on t+e alle*ed dest"uction o% CERs ,"o,e"ty, ot+e" t+an t+ose sustained as a "esult o% dis,ossession in t+e Co"cible Ent"y case could not be conside"ed as s,littin* o% a cause o% action-

C'C&S2 CER Co",o"ation, Be".an Benedicto and 'lbe"to Benedicto, ,etitione"s, clai. to +a e occu,ied 5$ +a- o% ,ublic land in (e*"os Occidental, ,u"suant to a lease a*"ee.ent *"anted to t+e. by t+e Sec"eta"y o% '*"icultu"e %o" a ,e"iod o% 4> yea"s /to last Octobe" 4DDD to Dece.be" 4D4:0- On (o e.be" 4DDD, +o!e e", "es,ondent &"eyes alle*edly %o"cibly and unla!%ully ente"ed t+e leased

CIVIL PROCEDURE REVIEWER14

,"e.ises and ba""icaded t+e ent"ance to t+e %is+,onds o% t+e ,etitione"s- &"eyes and +is .en also +a" ested tons o% .il6%is+ and %in*e"lin*s %"o. t+e ,etitione"s ,ondsPetitione"s t+en %iled a co.,laint %o" Forcible +ntry !it+ t+e )&C- Another com%laint to claim for damages !as also %iled by t+e ,etitione"s a*ainst t+e sa.e "es,ondent &"eyes *"ounded on t+e alle*ations t+at &"eyes and +is .en also dest"oyed and "ansac6ed t+e C+a,el built by ,etitione" CER Co",o"ation and deca,itated t+e +eads o% t+e "eli*ious %i*u"esISSUE2 .hether during the %endency of a se%arate com%laint for Forcible +ntry, the %etitioner can inde%endently institute and maintain an action for damages which they claim arose from incidents occurring after the forcible entry of 4reyes and his men 6ES2 &+e only "eco e"able da.a*es in t+e %o"cible ent"y and detaine" cases instituted %i"st by t+e ,etitione"s !it+ t+e )&C a"e t+e G"entsK o" %ai" "ental alue o% t+e ,"o,e"ty %"o. t+e ti.e o% dis,ossession by t+e "es,ondent- Bence, ot+e" da.a*es bein* clai.ed by t+e ,etitione"s .ust be clai.ed in anot+e" o"dina"y ci il actionIt is note!o"t+y t+at t+e second action instituted by t+e ,etitione"s /co.,laint %o" da.a*es0 +a e (O di"ect "elation to t+ei" loss o% ,ossession o% t+e leased ,"e.ises O !+ic+ is t+e .ain issue in t+e %i"st action t+ey instituted&+e second action %o" clai. o% da.a*es +ad to do !it+ t+e +a" estin* and ca"tin* a!ay o% .il6%is+ and ot+e" .a"ine ,"oducts, as !ell as t+e "ansac6in* o% t+e c+a,el built by CER Co",- Clea"ly, t+e institution o% t+e t!o cases is not a s,littin* o% a cause o% action, since bot+ a"e conce"ned !it+ enti"ely di%%e"ent issuesENRI,UE/ v. RAMOS (' SCRA !65 (%6&" 'n e8a.ination o% t+e %i"st co.,laint %iled a*ainst a,,ellant in CCI s+o!ed t+at it !as based on a,,ellantsM +a in* unla!%ully sto,,ed ,ay.ent o% t+e c+ec6 %o" P4,>DD-DD s+e +ad issued in %a o" o% a,,ellees9 !+ile t+e co.,laint in t+e second and ,"esent action !as %o" non7,ay.ent o% t+e balance o% P#=,DDD-DD *ua"anteed by t+e .o"t*a*e- &+e clai. %o" P4,>DD-DD !as, t+e"e%o"e, a distinct debt not co e"ed by t+e secu"ity- &+e t!o causes o% action bein* di%%e"ent, section : o% Rule 4 does not a,,lyC'C&S2 Rod"i*o En"i?ueH and t+e DiHon s,ouses sold to Soco""o Ra.os 11 ,a"cels o% land %o" P1D1,DDD- Ra.os ,aid P>,DDD do!n,ay.ent, P4,>DD in cas+, and !it+ a P4,>DD-DD c+ec6 d"a!n a*ainst P(B, and a*"eed to satis%y t+e balance o% P#=,DDD-DD !it+in #D days- &o secu"e t+e said balance, Ra.os, in t+e sa.e deed o% sale, .o"t*a*ed t+e 11 ,a"cels in %a o" o% t+e endo"s- Ra.os .o"t*a*ed a lot on )alinta Estate as additional secu"ity, as atto"ney7in7 %act o% +e" %ou" c+ild"en and as 3udicial *ua"dian o% +e" .ino" c+ildRa.os %ailed to co.,ly !it+ t+e conditions o% t+e .o"t*a*e, so an action %o" %o"eclosu"e !as %iled by t+e endo"s7.o"t*a*ees- Ra.os .o ed to dis.iss, alle*in*
)E(DE@, IV'( VIA&OR /4D, 150

t+at t+e ,lainti%%s ,"e iously +ad %iled action a*ainst +e" in t+e CCI o% )anila %o" t+e "eco e"y o% P4,>DD-DD ,aid by c+ec6 as ,a"t o% t+e do!n ,ay.ent on t+e ,"ice o% t+e .o"t*a*ed lands9 t+at at t+e ti.e t+is %i"st suit !as %iled, t+e .o"t*a*e debt !as al"eady acc"ued and de.andable9 t+at ,lainti%%s !e"e *uilty o% s,littin* a sin*le cause o% action, and unde" section : o% Rule 4 o% t+e Rules o% Cou"t, t+e %ilin* o% t+e %i"st action %o" P4,>DD-DD !as a de%ense t+at could be ,leaded in abate.ent o% t+e second suitCCI o% PueHon City denied t+e .otion to dis.iss- De%endant Ra.os "e7,leaded t+e a e".ents as a s,ecial de%ense in +e" ans!e"- &+e CCI "uled a*ainst de%endant Ra.os9 o"de"ed +e" to ,ay P#=,DDD-DD, !it+ 14L inte"est, atto"neyMs %ees, and t+e costs o% t+e suit9 and %u"t+e" dec"eed t+e %o"eclosu"e sale o% t+e .o"t*a*ed ,"o,e"ties in case o% non7,ay.ent !it+in #D days- Ra.os a,,ealed di"ectly to SC, ISSUE2 .hether there was s%litting of cause of action NO" t+e"e is no s,littin* o% cause o% action in t+is case- 'n e8a.ination o% t+e %i"st co.,laint %iled a*ainst a,,ellant in CCI s+o!ed t+at it !as based on a,,ellantsM +a in* unla!%ully sto,,ed ,ay.ent o% t+e c+ec6 %o" P4,>DD-DD s+e +ad issued in %a o" o% a,,ellees, !+ile t+e co.,laint in t+e second and ,"esent action !as %o" non7 ,ay.ent o% t+e balance o% P#=,DDD-DD *ua"anteed by t+e .o"t*a*e- &+e clai. %o" P4,>DD-DD !as, t+e"e%o"e, a distinct debt not co e"ed by t+e secu"ity- &+e t!o causes o% action bein* di%%e"ent, section : o% Rule 4 does not a,,lyRemed. a$ainst s# ittin$ a sin$ e cause !f acti!n /a0 Motion to dismiss ($ec : ;e< or ;f<, !ule :&"1 Wit+in t+e ti.e %o" but be%o"e %ilin* t+e ans!e" to t+e co.,laint o" ,leadin* asse"tin* a clai., a .otion to dis.iss .ay be .ade on any o% t+e %ollo!in* *"ounds2 888 /e0 &+at t+e"e is anot+e" action ,endin* bet!een t+e sa.e ,a"ties %o" t+e sa.e cause9 /%0 &+at t+e cause o% action is ba""ed by a ,"io" 3ud*.ent o" by t+e statute o% li.itations 888 /b0 Answer alleging affirmative defense ($ec# &, !ule :&"1 I% no .otion to dis.iss +as been %iled, any o% t+e *"ounds %o" dis.issal ,"o ided %o" in t+is Rule .ay be ,leaded as an a%%i".ati e de%ense in t+e ans!e" and, in t+e disc"etion o% t+e cou"t, a ,"eli.ina"y +ea"in* .ay be +ad t+e"eon as i% a .otion to dis.iss +ad been %iled(O&E2 's to !+ic+ action s+ould be dis.issed /t+e %i"st o" second one0 !ould de,end u,on 3udicial disc"etion and t+e ,"e ailin* ci"cu.stances o% t+e case-

0!inder !f causes !f acti!n

CIVIL PROCEDURE REVIEWER15

=oinder of causes of action is t+e asse"tion o% as .any causes o% action as a ,a"ty .ay +a e a*ainst anot+e" in one ,leadin*- It is t+e ,"ocess o% unitin* t!o o" .o"e de.ands o" "i*+ts o% action in one action &+is is .e"ely %ermissive, (O& co.,ulso"y, because o% t+e use o% t+e !o"d G.ayK in Sec- >, Rule 4It is sub3ect to t+e %ollo!in* conditions2 /a0 &+e ,a"ty 3oinin* t+e causes o% action s+all co.,ly !it+ t+e "ules on 3oinde" o% ,a"ties9 i&+e "i*+t to "elie% s+ould a"ise out o% t+e sa.e t"ansaction o" se"ies o% t"ansaction, and ii&+e"e e8ists a co..on ?uestion o% la! o" %act- /Sec- =, Rule 50 /b0 &+e 3oinde" s+all not include s,ecial ci il actions o" actions *o e"ned by s,ecial "ules9 +,am%le* 'n action %o" clai. o% .oney cannot be 3oined !it+ an action %o" e3ect.ent, o" !it+ an action %o" %o"eclosu"e/c0 W+e"e t+e causes o% action a"e bet!een t+e sa.e ,a"ties but ,e"tain to di%%e"ent enues o" 3u"isdictions, t+e 3oinde" .ay be allo!ed in t+e R&C ,"o ided ione o% t+e causes o% action %alls !it+in t+e 3u"isdiction o% said cou"t, and iit+e enue lies t+e"ein9 and /d0 W+e"e t+e clai.s in all t+e causes o% action a"e ,"inci,ally %o" "eco e"y o% .oney, t+e a**"e*ate a.ount clai.ed s+all be t+e test o% 3u"isdiction/Sec- >, Rule 40 Mis/oinder of causes of action )is3oinde" o% causes o% action is (O& a *"ound %o" dis.issal o% an action- ' .is3oined cause o% action .ay be se e"ed and ,"oceeded !it+ se,a"ately2 /a0 on .otion o% a ,a"ty, or /b0 on t+e initiati e o% t+e cou"t- /Sec- =, Rule 40

Binon*cal %o" P11, =:5, and t+e second !as a*ainst Calion %o" P1D, 414- Binon*cal %iled a )otion to Dis.iss on t+e *"ound o% lac6 o% 3u"isdiction since unde" Sec- 1#/F0 o% BP14# R&C s+all e8e"cise e8clusi e o"i*inal 3u"isdiction i% t+e a.ount o% t+e de.and is .o"e t+an P4D, DDD, and t+at t+e clai. a*ainst +i. is less t+an t+at a.ount- Be a e""ed %u"t+e" t+at alt+ou*+ Calion !as also indebted to Clo"es, +is obli*ation !as se,a"ate and distinct %"o. t+e ot+e", so t+e a**"e*ate o% t+e clai.s cannot be t+e basis o% 3u"isdiction- Calion 3oined in .o in* %o" t+e dis.issal o% t+e co.,laint du"in* t+e +ea"in* o% t+e .otion- Petitione" o,,osed t+e )otion to Dis.iss- R&C dis.issed t+e co.,laint %o" lac6 o% 3u"isdictionISSUE2 .hether !4C has /urisdiction over the case following the 4otality !ule 6ES2 &+e &otality Rule /unde" Sec- 55 o% BP14# and Sec- 11 o% t+e Inte"i. Rules0 a,,lies not only to cases !+e"e t!o o" .o"e ,lainti%%s +a in* se,a"ate causes o% action a*ainst a de%endant 3oin in a sin*le co.,laint, but also to cases !+e"e a ,lainti%% +as se,a"ate causes o% action a*ainst t!o o" .o"e de%endants 3oined in a sin*le co.,laint- Bo!e e", t+e said causes o% action s+ould a"ise out o% t+e sa.e t"ansaction o" se"ies o% t"ansactions and t+e"e s+ould be a co..on ?uestion o% la! o" %act, as ,"o ided in Sec- = o% Rule 5In cases o% ,e".issi e 3oinde" o% ,a"ties, t+e total o% all t+e clai.s s+all be t+e %i"st 3u"isdictional test- I% instead o% 3oinin* o" bein* 3oined in one co.,laint, se,a"ate actions a"e %iled by o" a*ainst t+e ,a"ties, t+e a.ount de.anded in eac+ co.,laint s+all be t+e second 3u"isdictional testIn t+e case at ba", t+e lo!e" cou"t co""ectly +eld t+at t+e 3u"isdictional test is sub3ect to t+e Rules on Joinde" o% Pa"ties ,u"suant to Sec- > o% Rule 4 and Sec- = o% Rule 5 o% t+e Rules o% Cou"t- )o"eo e", a%te" a ca"e%ul sc"utiny o% t+e co.,laint, It a,,ea"s t+at t+e"e is a .is3oinde" o% ,a"ties %o" t+e "eason t+at t+e clai.s a*ainst Binon*cal and Calion a"e se,a"ate and distinct and neit+e" o% !+ic+ %alls !it+in its 3u"isdictionUNI$IDE HOLDINGS INC. v. CRU/ (5!% SCRA 664 !00'" E8clusi e enue sti,ulation e.bodied in a cont"act "est"icts o" con%ines ,a"ties t+e"eto !+en t+e suit "elates to b"eac+ o% said cont"act- But !+e"e t+e e8clusi ity clause does not .a6e it necessa"ily enco.,assin*, suc+ t+at e en t+ose not "elated to t+e en%o"ce.ent o% t+e cont"act s+ould be sub3ect to t+e e8clusi e enue, t+e sti,ulation desi*natin* e8clusi e enues s+ould be st"ictly con%ined to t+e s,eci%ic unde"ta6in* o" a*"ee.ent-

FLORES v. MALLARE0#HILLI##S ((44 SCRA !'' (%)6" ',,lication o% t+e &otality Rule unde" Sect- 55/l0 BP14# and Sect- 11 o% t+e Inte"i. Rules is sub3ect to t+e "e?ui"e.ents %o" t+e Pe".issi e Joinde" o% Pa"ties unde" Sec- = o% Rule 5In cases o% ,e".issi e 3oinde" o% ,a"ties, t+e total o% all t+e clai.s s+all be t+e %i"st 3u"isdictional test- I% instead o% a 3oinde", se,a"ate actions a"e %iled by o" a*ainst t+e ,a"ties, t+e a.ount de.anded in eac+ co.,laint s+all be t+e second 3u"isdictional test-

C'C&S2 Binon*cal and Calion, in se,a"ate t"ansactions, ,u"c+ased t"uc6 ti"es on c"edit %"o. Clo"es- &+e t!o alle*edly "e%used to ,ay t+ei" debts, so Clo"es %iled a co.,laint !+e"e t+e %i"st cause o% action !as a*ainst
)E(DE@, IV'( VIA&OR /4D, 150

C'C&S2 Uni!ide Boldin*s, Inc- /UBI0 *"anted C"uH, a >y"- %"anc+ise to ado,t and use t+e QUni!ide Ca.ily Sto"e Syste.Q %o" t+e establis+.ent and o,e"ation o% a QUni!ide Ca.ily Sto"eQ in )a"i6ina- &+e a*"ee.ent obli*ed C"uH to ,ay UBI a P>D,DDD .ont+ly se" ice %ee o" 5L o% *"oss .ont+ly ,u"c+ases, !+ic+e e" is +i*+e", ,ayable !it+in > days a%te" t+e end o% eac+ .ont+ !it+out need o% %o".al

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billin* o" de.and %"o. UBI- In case o% any delay in t+e ,ay.ent o% t+e .ont+ly se" ice %ee, C"uH !ould be liable to ,ay an inte"est c+a"*e o% 5L ,e" .ont+It a,,ea"s t+at C"uH +ad ,u"c+ased *oods %"o. UBIs a%%iliated co.,anies CPC and USWCI- CPC and USWCI assi*ned all t+ei" "i*+ts and inte"ests o e" C"uHs accounts to UBI- C"uH +ad outstandin* obli*ations !it+ UBI, CPC, and USWCI in t+e total a.ount o% P1,5>F,>51-F#, !+ic+ "e.ained unsettled des,ite t+e de.ands .ade&+us UBI %iled a co.,laint %o" collection o% su. o% .oney be%o"e R&C o% Pa"aRa?ue C"uH on t+e %ollo!in* causes o% action2 /10 P1,54$,==#-F54 in actual da.a*es %o" %ailu"e to ,ay t+e .ont+ly se" ice %ee9 /40 P=:,1=>-#= o% actual da.a*es %o" %ailu"e to ,ay "ecei ables assi*ned by CPC to UBI9 /50 P1,>$#,D=1-5= o% actual da.a*es %o" %ailu"e to ,ay t+e "ecei ables assi*ned by USWCI to UBI9 /:0 P4>D,DDD-DD o% atto"neys %eesC"uH %iled a .otion to dis.iss on t+e *"ound o% i.,"o,e" enue, in o6in* '"ticle 4$-> o% t+e a*"ee.ent !+ic+ "eads2 >?#9 @enue $ti%ulation O &+e C"anc+isee consents to t+e e8clusi e 3u"isdiction o% t+e cou"ts o% PueHon City, t+e C"anc+isee !ai in* any ot+e" enuePa"aRa?ue R&C *"anted C"uHs .otion to dis.iss- Bence, t+e ,"esent ,etitionISSUE2 .hether a case based on several causes of action is dismissible on the ground of im%ro%er venue where only one of the causes of action arises from a contract with e,clusive venue sti%ulation NO2 &+e *ene"al "ule on enue o% ,e"sonal actions ,"o ides actions .ay be co..enced and t"ied !+e"e t+e ,lainti%% o" any o% t+e ,"inci,al ,lainti%%s "esides, o" !+e"e t+e de%endant o" any o% t+e ,"inci,al de%endants "esides, o" in t+e case o% a non"esident de%endant, !+e"e +e .ay be %ound, at t+e election o% t+e ,lainti%%- &+e ,a"ties .ay also alidly a*"ee in !"itin* on an e8clusi e enue&+e %o"*in* o% a !"itten a*"ee.ent on an e8clusi e enue o% an action does not, +o!e e", ,"eclude ,a"ties %"o. b"in*in* a case to ot+e" enuesW+e"e t+e"e is a 3oinde" o% causes o% action bet!een t+e sa.e ,a"ties and one action does not a"ise out o% t+e cont"act !+e"e t+e e8clusi e enue !as sti,ulated u,on, t+e co.,laint, as in t+e one at ba", .ay be b"ou*+t be%o"e ot+e" enues ,"o ided t+at suc+ ot+e" cause o% action %alls !it+in t+e 3u"isdiction o% t+e cou"t and t+e enue lies t+e"einBased on t+e alle*ations in ,etitione"s co.,laint, t+e second and t+i"d causes o% action a"e based on t+e deeds o% assi*n.ent e8ecuted in its %a o" by CPC and USWCI- &+e deeds bea" no e8clusi e enue sti,ulation !it+ "es,ect to t+e causes o% action t+e"eunde"- Bence, t+e *ene"al "ule on enue a,,lies O t+at t+e co.,laint .ay be %iled in t+e ,lace !+e"e t+e ,lainti%% o" de%endant "esidesIt bea"s e.,+asis t+at t+e causes o% action on t+e assi*ned accounts a"e not based on a b"eac+ o% t+e a*"ee.ent bet!een UBI and C"uH- &+ey a"e based on se,a"ate, distinct and inde,endent cont"acts1deeds o% assi*n.ent in !+ic+ UBI is t+e assi*nee o% C"uHs obli*ations to t+e assi*no"s CPC and USWCI- &+us, any action a"isin* %"o. t+e deeds o% assi*n.ent cannot be
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sub3ected to t+e e8clusi e enue sti,ulation e.bodied in t+e a*"ee.entE8clusi e enue sti,ulation e.bodied in a cont"act "est"icts o" con%ines ,a"ties t+e"eto !+en t+e suit "elates to b"eac+ o% said cont"act- But !+e"e t+e e8clusi ity clause does not .a6e it necessa"ily enco.,assin*, suc+ t+at e en t+ose not "elated to t+e en%o"ce.ent o% t+e cont"act s+ould be sub3ect to t+e e8clusi e enue, t+e sti,ulation desi*natin* e8clusi e enues s+ould be st"ictly con%ined to t+e s,eci%ic unde"ta6in* o" a*"ee.entOt+e"!ise, t+e basic ,"inci,les o% %"eedo. to cont"act .i*+t !o"6 to t+e *"eat disad anta*e o% a !ea6 ,a"ty7 suito" !+o ou*+t to be allo!ed %"ee access to cou"ts o% 3usticeW+at is t+e t!ta it. ru e/ W+e"e t+e clai.s in all t+e causes o% action a"e ,"inci,ally %o" "eco e"y o% .oney, t+e a**"e*ate a.ount clai.ed s+all be t+e test o% 3u"isdiction- /Sec- >, Rule 40

PAR1IES 1O CIVIL AC1IONS &RULE 7( Parties &Sec2 '" Ru e 7( (:" Plaintiff&+e ,lainti%% is t+e clai.in* ,a"ty o" t+e o"i*inal clai.in* ,a"ty and is t+e one !+o %iles t+e co.,laint It .ay also a,,ly to a de%endant !+o %iles a counte"clai., a c"oss7clai. o" a t+i"d ,a"ty co.,laint(>" Defendant&+e de%endant "e%e"s to t+e o"i*inal de%endin* ,a"ty, and also t+e de%endant in a counte"clai., t+e c"oss7 de%endant, o" t+e t+i"d ,a"ty de%endant I% a counte"clai. is %iled a*ainst t+e o"i*inal ,lainti%%, t+e latte" beco.es t+e de%endantW+! ma. be #arties/ &Sec2 '" Ru e 7( /10 (atu"al ,e"sons /40 Ju"idical ,e"sons /a0 &+e State and its ,olitical subdi isions9 /b0 Ot+e" co",o"ations, institutions and entities %o" ,ublic inte"est o" ,u",ose, c"eated by la!9 and /c0 Co",o"ations, ,a"tne"s+i,s and associations %o" ,"i ate inte"est " ,u",ose to !+ic+ t+e la! *"ants a 3u"idical ,e"sonality, se,a"ate and distinct %"o. eac+ s+a"e+olde", ,a"tne" o" .e.be"- /'"t- ::, Ci il Code0 /50 Entities aut+o"iHed by la!, e en i% t+ey lac6 3u"idical ,e"sonality /a0 Co",o"ation by esto,,el /Sec- 41, Co",o"ation Code09 /b0 Pa"tne"s+i, +a in* a ca,ital o% P5,DDD o" .o"e but %ails to co.,ly !it+ t+e "e*ist"ation "e?ui"e.ents /'"t- 1$=F, Ci il Code09 /c0 Estate o% a deceased ,e"son

CIVIL PROCEDURE REVIEWER1>

/d0 ' le*iti.ate labo" o"*aniHation /'"t- 4:4 ;e<, Labo" Code09 /e0 &+e Ra.on Cat+olic C+u"c+9 /%0 ' dissol ed co",o"ation .ay ,"osecute and de%end in suits !+ic+2 a- Occu" !it+in 5 yea"s a%te" dissolution9 and b- '"e connected !it+ t+e settle.ent and closu"e o% its a%%ai"s /Sec- 144, Co",o"ation Code0 CLASSI,ICA1ION O, PAR1IES Rea #art.)in)interest ' real %arty in interest is t+e ,a"ty !+o stands to be bene%ited o" in3u"ed by t+e 3ud*.ent in t+e suit, o" t+e ,a"ty entitled to t+e a ails o% t+e suit Anless ot+e"!ise aut+o"iHed by la! o" t+ese Rules, e e"y action .ust be ,"osecuted o" de%ended in t+e na.e o% t+e "eal ,a"ty in inte"est/Sec- 4, Rule 50 !eal interest1a ,"esent substantial inte"est as distin*uis+ed %"o. a .e"e e8,ectancy o" a %utu"e, contin*ent subo"dinate o" conse?uential inte"est- It is material and direct, as distin*uis+ed %"o. a .e"e incidental inte"est &+e o!ne" o% t+e "i*+t o% iolated is t+e "eal ,a"ty in inte"est as ,lainti%%, and t+e ,e"son "es,onsible %o" t+e iolation is t+e "eal ,a"ty in inte"est as de%endant0ot real %arty in interest ' ,e"son !+o +as not ta6en ,a"t in a cont"act &+i"d ,a"ty !+o +as not ta6en ,a"t in a co.,"o.ise a*"ee.ent )e"e a*ent in a cont"act o% sale

C'C&S2 &+e Sub3ect P"o,e"ty !as ,a"t o% a ast t"act o% land called GBacienda Puibi*aK !+ic+ !as a!a"ded to Don Be".o*enes Rod"i*ueH by t+e Pueen o% S,ain and e idenced by a S,anis+ title- Don Is.ael Ca ila, clai.in* to be one o% t+e +ei"s and successo"s7in7inte"est o% Rod"i*ueH, and ,u"suant to an SP' e8ecuted by +is G mga 6a%atid,K assi*ned ,o"tions o% t+e ,"o,e"ty to t+e ,etitione"s in e8c+an*e %o" t+e labo" and !o"6 t+ey and t+ei" ,"edecesso"s +a e done on t+e ,"o,e"tyPetitione"s !e"e in%o".ed t+at Santia*o !as ,lannin* to e ict t+e.9 t!o o% t+e. "ecei ed notices to acate- &+ei" in esti*ations "e ealed t+at t+e ,"o,e"ty !as included in &C&s !+ic+ o"i*inated %"o. OC& (o- =$D, and is no! in t+e na.e o% "es,ondentPetitione"s %iled an action %o" decla"ation o% nullity o% "es,ondents ce"ti%icates o% title on t+e basis t+at OC& (o- =$D !as %a6e and s,u"ious's an a%%i".ati e de%ense, "es,ondent clai.ed t+at t+e ,etitione"s +ad no le*al ca,acity to %ile t+e Co.,laint, and t+us, t+e Co.,laint stated no cause o% action- Be a e""ed t+at since OC& (o- =$D !as *enuine and aut+entic on its %ace, t+en t+e OC& and all land titles de"i ed t+e"e%"o., a"e incont"o e"tible, inde%easible and conclusi e a*ainst t+e ,etitione"s and t+e !+ole !o"ldR&C dis.issed t+e co.,laint on t+e *"ound t+at t+e action %iled !as in e%%ect an action %o" "e e"sion, and t+e"e%o"e s+ould +a e been initiated by t+e OSE, not ,"i ate indi iduals- In t+e end, it concluded t+at t+e ,etitione"s !e"e not t+e o!ne"s o% t+e sub3ect ,"o,e"tyC' a%%i".ed t+e R&C, and li6e!ise dis.issed t+e co.,laintISSUE2 .hether the res%ondentBs action is %ro%erly based on %etitionersB lac6 of legal ca%acity to sue NO2 &+e te". Qlac6 o% ca,acity to sueQ s+ould not be con%used !it+ t+e te". Qlac6 o% ,e"sonality to sue-Q &+e %o".e" "e%e"s to a ,lainti%%Ms *ene"al disability to sue, suc+ as on account o% .ino"ity, insanity, inco.,etence, lac6 o% 3u"idical ,e"sonality o" any ot+e" *ene"al dis?uali%ications o% a ,a"ty, !+ile t+e latte" "e%e"s to t+e %act t+at t+e ,lainti%% is not t+e "eal ,a"ty7 in7inte"est- &+e %i"st can be a *"ound %o" a .otion to dis.iss based on t+e *"ound o% lac6 o% le*al ca,acity to sue9 !+e"eas t+e second can be used as a *"ound %o" a .otion to dis.iss based on t+e %act t+at t+e co.,laint, on t+e %ace t+e"eo%, e idently states no cause o% action- In t+e ,"esent case, t+is Cou"t .ay assu.e t+at t+e "es,ondent is "aisin* t+e a%%i".ati e de%ense t+at t+e Co.,laint %iled by t+e ,etitione"s be%o"e t+e t"ial cou"t stated no cause o% action because t+e ,etitione"s lac6ed t+e ,e"sonality to sue, not bein* t+e "eal ,a"ty7in7inte"estISSUE2 .hether the com%laint stated no cause of action since %etitioners had no %ersonality to sue 6ES2 Petitione"s +ad no ,e"sonality to %ile t+e said action, not bein* t+e ,a"ties7in7inte"est, and t+ei" Co.,laint s+ould be dis.issed %o" not statin* a cause o% action&+e action is "eally one %o" t+e "e.o al o% a cloud on o" ?uietin* o% title and acco"din* to '"ticle :$$ o% t+e Ci il Code, t+e ,lainti%% in suc+ an action .ust +a e

Lac* !f #ers!na it. t! sue E*ANGELISTA v. SANTIAGO (4'5 SCRA '44" &+e te". Qlac6 o% ca,acity to sueQ "e%e"s to a ,lainti%%Ms *ene"al disability to sue, suc+ as on account o% .ino"ity, insanity, inco.,etence, lac6 o% 3u"idical ,e"sonality o" any ot+e" *ene"al dis?uali%ications o% a ,a"ty- QLac6 o% ,e"sonality to sueK "e%e"s to t+e %act t+at t+e ,lainti%% is not t+e "eal ,a"ty7 in7inte"est- &+e %i"st can be a *"ound %o" a .otion to dis.iss based on t+e *"ound o% lac6 o% le*al ca,acity to sue9 !+e"eas t+e second can be used as a *"ound %o" a .otion to dis.iss based on t+e %act t+at t+e co.,laint, on t+e %ace t+e"eo%, e idently states no cause o% action-

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le*al o" e?uitable title to, o" inte"est in, t+e "eal ,"o,e"ty !+ic+ is t+e sub3ect .atte" o% t+e action- Petitione"s %ailed to establis+ any le*al o" e?uitable title to, o" le*iti.ate inte"est in, t+e Sub3ect P"o,e"ty so as to 3usti%y t+ei" "i*+t to %ile an action to "e.o e a cloud on o" to ?uiet title'lso, t+e title to and ,ossession o% t+e Sub3ect P"o,e"ty by ,etitione"s ,"edecesso"s7in7inte"est could be t"aced only as %a" bac6 as t+e S,anis+ title o% Rod"i*ueHPetitione"s, +a in* ac?ui"ed ,o"tions o% t+e Sub3ect P"o,e"ty by assi*n.ent, could ac?ui"e no bette" title to t+e said ,o"tions t+an t+ei" ,"edecesso"s7in7inte"estStandin$ t! sue DOMINGO v. CARAGUE (456 SCRA '44 !005" Judicial ,o!e" is t+e ,o!e" to +ea" and decide cases ,endin* bet!een ,a"ties !+o +a e t+e "i*+t to sue in cou"ts o% la! and e?uity- Co"olla"y to t+is dictu. is t+e ,"inci,le o% locus standi o% a liti*ant- Be !+o is di"ectly a%%ected and !+ose inte"est is i..ediate and substantial +as t+e standin* to sue- &+us, a ,a"ty .ust s+o! a ,e"sonal sta6e in t+e outco.e o% t+e case o" an in3u"y to +i.sel% t+at can be "ed"essed by a %a o"able decision in o"de" to !a""ant an in ocation o% t+e cou"ts 3u"isdiction and 3usti%y t+e e8e"cise o% 3udicial ,o!e" on +is be+al%C'C&S2 Petitione"s Do.in*o, Ean*an and Bana"ia a"e "eti"ed C+ai".en, !+ile U"sal and C"uH a"e "eti"ed Co..issione"s o% CO' /Co..ission on 'udit0 and t+e ot+e" ,etitione"s a"e incu.bent o%%ice"s o" e.,loyees o% CO'- 'll clai. Gto .aintain a dee,7seated abidin* inte"est in t+e a%%ai"s o% CO',K es,ecially in its O"*aniHational Rest"uctu"in* Plan, as conce"ned ta8,aye"s&+ese ,etitione"s clai. t+at t+ey !e"e di ested o% t+ei" desi*nationsI"an6s u,on i.,le.entation o% t+e CO' O"*aniHational Rest"uctu"in* Plan !it+out 3ust cause and !it+out due ,"ocess, in iolation o% Ci il Se" ice La!- )o"eo e", t+ey !e"e de,"i ed o% t+ei" "es,ecti e Re,"esentation and &"ans,o"tation 'llo!ances /R'&'0, t+us causin* t+e. undue %inancial ,"e3udicePetitione"s no! in o6e t+is Cou"ts 3udicial ,o!e" to st"i6e do!n t+e CO' O"*aniHational Rest"uctu"in* Plan %o" bein* unconstitutional o" ille*alPetitione"s in o6e Chavez v# Public +states Authority, Agan, =r# v# Phili%%ine 1nternational Air 4erminals Co#, 1nc- and 1nformation 4echnology Foundation of the Phili%%ines v# Commission on +lections !+e"e t+e cou"t "uled t+at !+e"e t+e sub3ect .atte" o% a case is a .atte" o% ,ublic conce"n and i.bued !it+ ,ublic inte"est, t+en t+is %act alone *i es t+e. le*al standin* to institute t+e instant ,etition- Petitione"s contend t+at t+e CO' O"*aniHational Rest"uctu"in* Plan is not 3ust a .e"e "eo"*aniHation but a "e a., o" o e"+aul o% t+e CO', !+ic+ !ill +a e an i.,act u,on t+e "est o% t+e *o e"n.ent bodies sub3ect to its audit su,e" ision, t+us, s+ould be t"eated as a .atte" o% t"anscendental i.,o"tanceConse?uently, ,etitione"s le*al standin* s+ould be "eco*niHed and u,+eld-

&+e "es,ondents, t+"ou*+ t+e OSE assail t+e standin* o% t+e ,etitione"s to %ile t+e ,"esent case- '.on* ot+e"s, t+ey alle*e t+at t+e ,etitione"s2 /10 +a e not s+o!n Qa ,e"sonal sta6e in t+e outco.e o% t+e case o" an actual o" ,otential in3u"y t+at can be "ed"essed by a %a o"able decision o% t+e Cou"t, /40 %ailed to s+o! any Q,"esent substantial inte"estQ in te+ outco.e o% t+e case, no" /50 .ay t+e ,etitioen"s clai. t+at as ta8,aye"s t+ey +a e le*al standin* because no!+e"e in t+e ,etition do t+ey clai. t+at ,ublic %unds a"e s,ent in iolation o% la!ISSUE2 .hether the %etitioners have standing to sue NO2 &+e Petitione"s +a e not s+o!n any di"ect and ,e"sonal inte"est in t+e CO' O"*aniHational Rest"uctu"in* Plan- &+e"e is no indication t+at t+ey +a e sustained o" a"e in i..inent dan*e" o% sustainin* so.e di"ect in3u"y as a "esult o% its i.,le.entation- In %act, t+ey ad.itted t+at Gt+ey do not see6 any a%%i".ati e "elie% no" i.,ute any i.,"o,e" o" i.,"o ident act a*ainst t+e "es,ondentsK and Ga"e not .oti ated by any desi"e to see6 a%%i".ati e "elie% %"o. CO' o" %"o. "es,ondents t+at !ould "edound to t+ei" ,e"sonal bene%it o" *ain-K Clea"ly, t+ey do not +a e any le*al standin* to %ile t+e instant suitJudicial ,o!e" is t+e ,o!e" to +ea" and decide cases ,endin* bet!een ,a"ties !+o +a e t+e "i*+t to sue in cou"ts o% la! and e?uity- Co"olla"y to t+is dictu. is t+e ,"inci,le o% locus standi o% a liti*ant- Be !+o is di"ectly a%%ected and !+ose inte"est is i..ediate and substantial +as t+e standin* to sue- &+us, a ,a"ty .ust s+o! a ,e"sonal sta6e in t+e outco.e o% t+e case o" an in3u"y to +i.sel% t+at can be "ed"essed by a %a o"able decision in o"de" to !a""ant an in ocation o% t+e cou"ts 3u"isdiction and 3usti%y t+e e8e"cise o% 3udicial ,o!e" on +is be+al%In Chavez @# P+A, t+e Cou"t "uled t+at t+e ,etitione" +as le*al standin* since +e is a ta8,aye" and +is ,u",ose in %ilin* t+e ,etition is to co.,el t+e Public Estate 'ut+o"ity /PE'0 to ,e"%o". its constitutional duties !it+ "es,ect to2 /a0 t+e "i*+t o% t+e citiHens to in%o".ation on .atte"s o% ,ublic conce"n9 and /b0 t+e a,,lication o% a constitutional ,"o ision intended to insu"e t+e e?uitable dist"ibution o% alienable lands o% t+e ,ublic do.ain a.on* Cili,ino citiHens 7 suc+ !e"e .atte"s o% t"anscendental i.,o"tanceIn Agan,=r# @# P1A4CC, t+e Cou"t +eld t+at ,etitione"s +a e le*al standin* as t+ey +a e a di"ect and substantial inte"est to ,"otect- By t+e i.,le.entation o% t+e PI'&CO cont"acts, t+ey stand to lose t+ei" sou"ce o% li eli+ood, a ,"o,e"ty "i*+t Healously ,"otected by t+e Constitution and suc+ %inancial ,"e3udice on t+ei" ,a"t is su%%icient to con%e" u,on t+e. t+e "e?uisite locus standiIn 1nformation 4echnology Foundation @# CCM+L+C, t+e"e !e"e t!o "easons !+y ,etitione"s standin* !as "eco*niHed1 /10 t+e a!a"d %o" t+e auto.ation o% t+e electo"al ,"ocess !as a .atte" o% ,ublic conce"n, i.bued !it+ ,ublic inte"est, and /40 t+e indi idual ,etitione"s, as ta8,aye"s, asse"ted a .ate"ial inte"est in seein* to it t+at ,ublic %unds a"e ,"o,e"ly usedRe#resentative #arties W+e"e t+e action is allo!ed to be ,"osecuted o" de%ended by a "e,"esentati e o" so.eone actin* in a %iducia"y

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER1$

ca,acity, t+e beneficiary s+all be included in t+e title o% t+e case and s+all be dee.ed to be t+e "eal ,a"ty in inte"est' "e,"esentati e .ay be /10 a t"ustee o% an e8,"ess t"ust, /40 a *ua"dian, /50 an e8ecuto" o" ad.inist"ato", or /:0 a ,a"ty aut+o"iHed by la! o" t+ese Rules'n a*ent actin* in +is o!n na.e and %o" t+e bene%it o% an undisclosed ,"inci,al .ay sue o" be sued without 3oinin* t+e ,"inci,al e,ce%t !+en t+e cont"act in ol es t+in*s belon*in* to t+e ,"inci,al- /Sec- 5, Rule 50 O#OSA v. FACTORAN (!!4 SCRA '%! (%%&" Petitione"s ,e"sonality to sue in be+al% o% t+e succeedin* *ene"ations can only be based on t+e conce,t o% inte"*ene"ational "es,onsibility inso%a" as t+e "i*+t to a balanced and +ealt+%ul ecolo*y is conce"ned, since t+e sub3ect .atte" o% t+e co.,laint is o% co..on and *ene"al inte"est to all citiHens o% t+e P+ili,,inesC'C&S2 &+e ,etitione"s, all .ino"s, sou*+t t+e +el, o% t+e Su,"e.e Cou"t to o"de" t+e "es,ondent, t+en Sec"eta"y o% DE(R, to cancel all e8istin* &i.be" License '*"ee.ent /&L'0 in t+e count"y and to cease and desist %"o. "ecei in*, acce,tin*, ,"ocessin*, "ene!in* o" a,,"o in* ne! &L's- &+ey alle*ed t+at t+e .assi e co..e"cial lo**in* in t+e count"y is causin* ast abuses on "ain%o"est&+ey %u"t+e"ed t+e "i*+ts o% t+ei" *ene"ation and t+e "i*+ts o% t+e *ene"ations yet unbo"n to a balanced and +ealt+%ul ecolo*yISSUE2 .hether or not the %etitioners have a locus standi 6ES2 Locus standi .eans t+e "i*+t o% t+e liti*ant to act o" to be +ea"d- Unde" $ection :&, Article 11 of the :DE? constitution2 G&+e state s+all ,"otect and ad ance t+e "i*+t o% t+e ,eo,le to a balanced and +ealt+%ul ecolo*y in acco"d !it+ t+e "+yt+. and +a".ony o% natu"e-K Petitione"s, .ino"s asse"t t+at t+ey "e,"esent t+ei" *ene"ation as !ell as *ene"ation yet unbo"n- We %ind no di%%iculty in "ulin* t+at t+ey can, %o" t+e.sel es, %o" ot+e"s o% t+ei" *ene"ation and %o" t+e succeedin* *ene"ations, %ile a class suit- &+ei" ,e"sonality to sue in be+al% o% t+e succeedin* *ene"ations can only be based on t+e conce,t o% inte"*ene"ational "es,onsibility inso%a" as t+e "i*+t to a balanced and +ealt+%ul ecolo*y is conce"ned- Suc+ a "i*+t, as +e"eina%te" e8,ounded conside"s t+e G"+yt+. and +a".ony o% natu"eK- (atu"e .eans t+e c"eated !o"ld in its enti"ety- Suc+ "+yt+. and +a".ony indis,ensably include, inte" alia, t+e 3udicious dis,osition, utiliHation, .ana*e.ent, "ene!al and conse" ation o% t+e count"ys %o"est, .ine"al, land, !ate"s %is+e"ies, !ildli%e, o%%7 s+o"e a"eas and ot+e" natu"al "esou"ces to t+e end t+at t+ei" e8,lo"ation, de elo,.ent and utiliHation be e?uitably accessible to t+e ,"esent as !ell as %utu"e *ene"ations(eedless to say, e e"y *ene"ation +as a "es,onsibility to t+e ne8t to ,"ese" e t+at "+yt+. and +a".ony %o" t+e %ull
)E(DE@, IV'( VIA&OR /4D, 150

en3oy.ent o% a balanced and +ealt+%ul ecolo*y- Put a little di%%e"ently, t+e .ino"s asse"tion o% t+ei" "i*+t to a sound en i"on.ent constitutes, at t+e sa.e ti.e, t+e ,e"%o".ance o% t+ei" obli*ation to ensu"e t+e ,"otection o% t+at "i*+t %o" t+e *ene"ations to co.e&+is land.a"6 case +as been "uled as a class suit because t+e sub3ect .atte" o% t+e co.,laint is o% co..on and *ene"al inte"est, not 3ust %o" se e"al but %o" all citiHens o% t+e P+ili,,inesIndis#ensab e #arties 'n indis%ensable %arty is a ,a"ty in inte"est !it+out !+o. no %inal dete".ination can be +ad o% an action/10 &+ey s+all be 3oined eit+e" as ,lainti%%s o" de%endants- /Sec- $, Rule 50 /40 &+e ,"esence o% all indis,ensable ,a"ties is a condition sine ?ua non %o" t+e e8e"cise o% 3udicial ,o!e"/50 W+en an indis,ensable ,a"ty is not be%o"e t+e cou"t, t+e action should be dismissed(O&E2 &+e %ailu"e to 3oin an indis,ensable ,a"ty does not "esult in t+e out"i*+t dis.issal o% t+e action- (on73oinde" o" .is3oinde" o% ,a"ties is not a *"ound %o" dis.issal o% an action It is !+en t+e o"de" o% t+e cou"t to i.,lead t+e indis,ensable ,a"ty *oes un+eeded .ay t+e case be dis.issed/:0 !emedy2 Pa"ties .ay be d"o,,ed o" added by t+e cou"t on .otion o% any ,a"ty, o" on its o!n initiati e at any sta*e o% t+e action and on suc+ te".s as a"e 3ust- /Sec- 11, Rule 50 DOMINGO v. SCHEER (4!( SCRA '%! (%%&" &+e 3oinde" o% indis,ensable ,a"ties unde" Sec $, Rule 5 is .andato"y- Wit+out ,"esence o% indis,ensable ,a"ties to t+e suit, t+e 3ud*.ent o% t+e cou"t cannot attain "eal %inality- St"an*e"s to a case a"e not bound by t+e 3ud*.ent "ende"ed by t+e cou"t- &+e absence o% an indis,ensable ,a"ty "ende"s all subse?uent actions o% t+e cou"t null and oid- &+e"e is a lac6 o% aut+o"ity to act not only as to t+e absent ,a"ty but also as to t+ose ,"esent- &+e "es,onsibility o% i.,leadin* all t+e indis,ensable ,a"ties "est on t+e ,etitione"I,lainti%%Bo!e e", t+e non73oinde" o% indis,ensable ,a"ties is not a *"ound %o" dis.issal o% an action-

C'C&S2 Vice Consul Jutta Bi,,elein in%o".ed t+e P+ili,,ine '.bassado" to Bonn, Ee".any t+at "es,ondent E.il Sc+ee" +ad ,olice "eco"ds and %inancial liabilities in Ee".any- &+e Boa"d o% Co..issione"s /BOC0 t+e"e%o"e cancelled "es,ondents ,e".anent "esidence isa, and o"de"ed +is su..a"y de,o"tation and ,e".anent e8clusion %"o. t+e P+ili,,ines and inclusion o% +is na.e on t+e Bu"eaus Blac6listRes,ondent %iled an U"*ent )otion %o" Reconside"ation o% t+e o"de", but t+e BOC did not "esol e

CIVIL PROCEDURE REVIEWER1F

t+e "es,ondents .otion- &+e "es,ondent !as neit+e" a""ested no" de,o"ted)ean!+ile, t+e Dist"ict Cou"t o% St"aubin* dis.issed t+e c"i.inal case a*ainst t+e "es,ondent %o" ,+ysical in3u"ies- &+e Ee".an E.bassy in )anila, t+e"ea%te", issued a te.,o"a"y ,ass,o"t to t+e "es,ondentRes,ondent in%o".ed Co..issione" Ve"celes t+at +is ,ass,o"t +ad been "ene!ed %ollo!in* t+e dis.issal o% t+e said c"i.inal case- Be "eite"ated +is "e?uest %o" t+e cancellation o% t+e Su..a"y De,o"tation O"de" and t+e "esto"ation o% +is ,e".anent "esident status- &+e BOC still %ailed to "esol e t+e "es,ondents U"*ent )otion %o" Reconside"ationIn t+e .eanti.e, ,etitione" I..i*"ation Co..issione" 'nd"ea &- Do.in*o assu.ed o%%ice, and in?ui"ed !it+ Ee".an E.bassy i% t+e "es,ondent !as !anted by t+e Ee".an ,olice- &+e Ee".an E.bassy "e,lied in t+e ne*ati e't about .idni*+t on June =, 4DD4, )a"ine o,e"ati es and Bu"eau o% I..i*"ation and De,o"tation /BID0 a*ents a,,"e+ended t+e "es,ondent in +is "esidence on o"de"s o% t+e ,etitione" and !as +eld in custody in t+e BID )anila O%%ice !+ile a!aitin* +is de,o"tationRes,ondents counsel %iled !it+ t+e BID a .otion %o" bail to secu"e t+e "es,ondents te.,o"a"y libe"ty and %iled !it+ t+e Cou"t o% ',,eals a ,etition %o" certiorari, %rohibition and mandamus !it+ a ,"aye" %o" te.,o"a"y "est"ainin* o"de" and !"it o% ,"eli.ina"y in3unction, to en3oin t+e ,etitione" %"o. ,"oceedin* !it+ t+e "es,ondents de,o"tation- &+e C' issued a &ROPetitione" a"*ues t+at t+e "es,ondents ,etition !it+ t+e C' s+ould +a e been dis.issed %o" %ailu"e to i.,lead t+e "eal ,a"ty7in7inte"est, !+ic+ is t+e BOCISSUE2 .hether the 5CC was an indis%ensable %arty to the %etition 6ES2 &+e BOC !as an indis,ensable ,a"ty to t+e ,etition, BU& t+e non73oinde" o% indis,ensable ,a"ties is not a *"ound %o" dis.issal o% t+e action&+e "es,ondent !as a""ested and detained on t+e basis o% t+e Su..a"y De,o"tation O"de" o% t+e BOC- &+e ,etitione" caused t+e a""est o% t+e "es,ondent in obedience to t+e said De,o"tation O"de"- &+e "es,ondent, in +is )e.o"andu., ,"ayed t+at t+e C' annul not only t+e Su..a"y De,o"tation O"de" o% t+e BOC but also t+e latte"s O.nibus Resolution, and o"de" t+e "es,ondents i..ediate "elease&+e "es,ondent also ,"ayed t+at t+e C' issue a !"it o% .anda.us %o" t+e i..ediate "esolution o% +is U"*ent )otion %o" Reconside"ation- &+e said .otion +ad to be "esol ed by t+e BOC as t+e o"de" sou*+t to be "esol ed and "econside"ed !as issued by it and not by t+e ,etitione" alone- &+e ,o!e"s and duties o% t+e BOC .ay not be e8e"cised by t+e indi idual .e.be"s o% t+e Co..ission&+e 3oinde" o% indis,ensable ,a"ties is .andato"y- Wit+out t+e ,"esence o% indis,ensable ,a"ties to t+e suit, t+e 3ud*.ent o% t+e cou"t cannot attain "eal %inality- St"an*e"s to a case a"e not bound by t+e 3ud*.ent "ende"ed by t+e cou"t- &+e absence o% an indis,ensable ,a"ty "ende"s all subse?uent actions o% t+e cou"t null and oid- Lac6 o% aut+o"ity to act not only o% t+e absent ,a"ty but also as to t+ose ,"esent- &+e "es,onsibility o%
)E(DE@, IV'( VIA&OR /4D, 150

i.,leadin* all t+e indis,ensable ,a"ties "ests on t+e ,etitione"I,lainti%%Bo!e e", t+e non73oinde" o% indis,ensable ,a"ties is not a *"ound %o" t+e dis.issal o% an actionPa"ties .ay be added by o"de" o% t+e cou"t on .otion o% t+e ,a"ty o" on its o!n initiati e at any sta*e o% t+e action andIo" suc+ ti.es as a"e 3ust- I% t+e ,etitione"I,lainti%% "e%uses to i.,lead an indis,ensable ,a"ty des,ite t+e o"de" o% t+e cou"t, t+e latte" .ay dis.iss t+e co.,laintI,etition %o" t+e ,etitione"I,lainti%%s %ailu"e to co.,ly t+e"e%o"- &+e "e.edy is to i.,lead t+e non7,a"ty clai.ed to be indis,ensable&+e Cou"t .ay be cu"in* t+e de%ect in t+is case by addin* t+e BOC as ,a"ty ,etitione"- Indeed, it .ay no lon*e" be necessa"y to do so ta6in* into account t+e uni?ue bac6d"o, in t+is case, in ol in* as it does an issue o% ,ublic inte"est- '%te" all, t+e O%%ice o% t+e solicito" Eene"al +as "e,"esented t+e ,etitione" in t+e instant ,"oceedin*s, as !ell as t+e a,,ellate cou"t, and .aintained t+e alidity o% t+e de,o"tation o"de" and o% t+e BOCs O.nibus Resolution- It cannot, t+us, be clai.ed by t+e State t+at t+e BOC !as not a%%o"ded its day in cou"t, si.,ly because only t+e ,etitione", t+e c+ai",e"son o% t+e BOC, !as t+e "es,ondent in t+e C', and t+e ,etitione" in t+e instant "ecou"seU. v. CA (4%4 SCRA 5&5 !006" 'n indis,ensable ,a"ty is one !+ose inte"est !ill be a%%ected by t+e cou"tMs action in t+e liti*ation, and !it+out !+o. no %inal dete".ination o% t+e case can be +ad- &+e ,a"tyMs inte"est in t+e sub3ect .atte" o% t+e suit and in t+e "elie% sou*+t a"e so ine8t"icably inte"t!ined !it+ t+e ot+e" ,a"tiesM t+at +is le*al ,"esence as a ,a"ty to t+e ,"oceedin* is an absolute necessityC'C&S2 &+e Be"ita*e )e.o"ial Pa"6 is a %la*s+i, ,"o3ect o% t+e Bases Con e"sion De elo,.ent 'ut+o"ity /BCD'0 in Co"t Boni%acio- &o i.,le.ent t+e ,"o3ect, t+e BCD' ente"ed into Pool Co".ation &"ust '*"ee.ent /PC&'0 !it+ t+e P(B and t+e PE'- BCD' !as desi*nated as P"o3ect O!ne"9 PE', t+e P"o3ect )ana*e"9 and P(B as t+e &"usteePE', as ,"o3ect .ana*e", is tas6ed to i.,le.ent and co.,lete t+e a"ious en*inee"in* !o"6s and i.,"o e.ents o% Be"ita*e Pa"6PE' and ,etitione" Uy, a sin*le ,"o,"ieto"s+i, doin* business unde" t+e na.e o% Edison De elo,.ent and Const"uction, e8ecuted a Landsca,in* and Const"uction '*"ee.ent !+e"eby t+e ,etitione" unde"too6 to do all t+e landsca,in*, includin* t+e const"uction o% a te""asoleu. o% t+e Be"ita*e Pa"6Subse?uently, t+e ce"ti%icate +olde"s o% t+e ,"o3ect o"*aniHed t+e.sel es into a non7stoc6, non7,"o%it co",o"ation, t+e Be"ita*e Pa"6 )ana*e.ent Co",o"ation /BP)C0, no! t+e ,"i ate "es,ondent +e"ein&+e Be"ita*e Pa"6 E8ecuti e Co..ittee, +o!e e", te".inated t+e const"uction cont"acts due to delays and disc"e,ancies- PE' t+en assu.ed t+e duties o%

CIVIL PROCEDURE REVIEWER1#

t+e te".inated ,a"ty- Petitione" %iled a co.,laint a*ainst t+e PE' be%o"e t+e Const"uction Indust"y '"bit"ation Co..ission /CI'C0 !+e"e it sou*+t to "eco e" ,ay.ent %o" its ,"o*"ess billin*s on t+e said ,"o3ects- CI'C "uled in %a o" o% ,etitione"- Res,ondent a,,ealed to t+e C' on t+e *"ound t+at CI'C +ad no 3u"isdiction o e" t+e sub3ect .atte" since BP)C !as not i.,leaded as a ,a"ty, t+e"eby de,"i in* it o% its "i*+t to be +ea"d- C' "uled in %a o" o% "es,ondent- Bence t+is ,etition ISSUE2 .hether FPMC is a real %arty in interest or an indis%ensable %arty 6ES2 'n indis,ensable ,a"ty is one !+ose inte"est !ill be a%%ected by t+e cou"tMs action in t+e liti*ation, and !it+out !+o. no %inal dete".ination o% t+e case can be +ad- &+e ,a"tyMs inte"est in t+e sub3ect .atte" o% t+e suit and in t+e "elie% sou*+t a"e so ine8t"icably inte"t!ined !it+ t+e ot+e" ,a"tiesM t+at +is le*al ,"esence as a ,a"ty to t+e ,"oceedin* is an absolute necessityBased on t+e Const"uction '*"ee.ent, PE' ente"ed into it in its ca,acity as P"o3ect )ana*e", ,u"suant to t+e PC&'- 'cco"din* to t+e ,"o isions o% t+e PC&', u,on t+e %o".ation o% t+e BP)C, t+e PE' !ould tu"n o e" to t+e BP)C all t+e cont"acts "elatin* to t+e Be"ita*e Pa"6't t+e ti.e o% t+e %ilin* o% t+e CI'C Case, PE' ceased to be t+e P"o3ect )ana*e"- &+"ou*+ a Deed o% 'ssi*n.ent, PE' assi*ned its inte"ests in all t+e e8istin* cont"acts it ente"ed into as t+e P"o3ect )ana*e" %o" Be"ita*e Pa"6 to BP)CPE' o%%icially tu"ned o e" to BP)C all t+e docu.ents and e?ui,.ent in its ,ossession "elated to t+e Be"ita*e Pa"6 P"o3ect, and ,etitione" !as duly in%o".ed o% t+ese incidents- ',,a"ently, as o% t+e date o% t+e %ilin* o% t+e CI'C Case, PE' is no lon*e" a ,a"ty7in7inte"estInstead, it is no! ,"i ate "es,ondent BP)C, as t+e assi*nee, !+o stands to be bene%ited o" in3u"ed by t+e 3ud*.ent in t+e suit- In its absence, t+e"e cannot be a "esolution o% t+e dis,ute o% t+e ,a"ties be%o"e t+e cou"t !+ic+ is e%%ecti e, co.,lete o" e?uitableNecessar. #art. !r #r!#er #art. ' necessary %arty is not indis,ensable to t+e action since a %inal dete".ination o% t+e case can be +ad e en !+en a necessa"y ,a"ty is not 3oinedBU& a necessa"y ,a"ty ou*+t to be 3oined i% co.,lete "elie% is to be acco"ded to t+ose al"eady ,a"ties/Sec- F, Rule 50 0on2/oinder of necessary %arty W+ene e" in any ,leadin* in !+ic+ a clai. is asse"ted a necessa"y ,a"ty is not 3oined, t+e ,leade" s+all set %o"t+ /10 +is na.e, i% 6no!n, and /40 s+all state !+y +e is o.ittedS+ould t+e cou"t %ind t+e "eason %o" t+e o.ission un.e"ito"ious, it .ay o"de" t+e inclusion o% t+e o.itted necessa"y ,a"ty i% 3u"isdiction o e" +is ,e"son .ay be obtained- /Sec- #, Rule 50 LA#ERAL DE*1T. COR#. v. CA (!!& SCRA !6( (%%&"

' ,"o,e" ,a"ty is one !+ic+ ou*+t to be a ,a"ty i% co.,lete "elie% is to be acco"ded as bet!een t+ose al"eady ,a"ties- ' ,a"ty is indis,ensable i% no %inal dete".ination can be +ad o% an action unless it is 3oined eit+e" as ,lainti%% o" de%endant-

C'C&S2 'tty- BanHon sou*+t to "eco e" atto"neys %ees %o" ,"o%essional se" ices "ende"ed in se e"al ,endin* and ,ast cases %"o. La,e"al, La,e"al De t Co",-, and I.,e"ial De t Co",-, "e%e""in* to Sunbea.s Inc- only as G)"La,e"als Co",o"ation-K &+is ,a"ticula" ci il case !as decided on t+e basis o% a Co.,"o.ise '*"ee.ent !+e"e BanHon !ai ed all ot+e" .oney clai.s a*ainst t+e de%endants- Subse?uently, BanHon %iled a co.,laint a*ainst La,e"al, La,e"al De t, I.,e"ial De t, Sunbea.s Con enience Coods, Inc-, and 'csay %o" /10 annul.ent o% a ,o"tion o% t+e Co.,"o.ise '*"ee.ent9 /40 collection o% atto"neys %ees %o" se" ices in t+e cases "ende"ed %o" I.,e"ial, Sunbea.s, and La,e"al De t-9 /50 "eco e"y o% P1D6 ad3ud*ed to be ,ayable to +i. as atto"neys %ees by 'sca"io &uason9 and /:0 ,ay.ent to +i. o% no.inal da.a*es and atto"neys %eesR&C dis.issed t+e case on t+e *"ound t+at it +ad no 3u"isdiction to annul t+e Co.,"o.ise '*"ee.ent, as a,,"o ed by an e?ual and coo"dinate cou"t- It +eld t+at t+e issue !as co*niHable by t+e C'- )o"eo e", it !as +eld t+at t+e Co.,"o.ise '*"ee.ent al"eady co e"ed t+e ,lainti%%s ,"o%essional se" ices in t+e ?uestioned cases&+e C' a%%i".ed t+e R&C on t+e issue o% 3u"isdiction, but +eld 'tty- BanHon entitled to atto"neys %ees %"o. Sunbea.s Inc- since it !as not sub3ect to t+e co.,"o.ise a*"ee.ent !+ic+ !ai ed all .oney clai.s a*ainst de%endants na.ed t+e"ein, +a in* been "e%e""ed to only as G)"- La,e"als co",o"ation-K ISSUE2 .hether $unbeams 1nc#, is liable to %ay attorneys fees NO2 Sunbea.s Inc-, !+ic+ !as "e%e""ed to in t+e co.,laint as G)"- La,e"als Co",-K !as not na.ed as a ,a"ty de%endant- &+e ,"i ate "es,ondent belie ed t+at La,e"al, bein* t+e P"esident o% t+e said co.,any, !as di"ectly obli*ated to +i. %o" atto"neys %ees due +i. %o" +is +andlin* o% t+e case %o" Sunbea.s- Bo!e e", t+e"e is no e idence t+at Sunbea.s and La,e"al a"e one and t+e sa.e ,e"son- Sunbea.s s+ould +a e been 3oined as ,a"ty de%endant in o"de" t+at t+e 3ud*.ent o% t+e lo!e" cou"t could le*ally a%%ect it- But e en i% it !as not i.,leaded, t+e cou"t could still alidly ,"oceed !it+ t+e case because Sunbea.s !as not an indis,ensable ,a"ty but only a ,"o,e" ,a"ty- ' ,"o,e" ,a"ty is one !+ic+ ou*+t to be a ,a"ty i% co.,lete "elie% is to be acco"ded as bet!een t+ose al"eady ,a"ties- ' ,a"ty is indis,ensable i% no %inal dete".ination can be +ad o% an action unless it is 3oined eit+e" as ,lainti%% o" de%endant&+e Co.,"o.ise '*"ee.ent u,on !+ic+ t+e decision o% t+e cou"t !as based !as bet!een ,lainti%% 'ttyBanHon and t+e de%endants "e,"esented by La,e"al- &+us, since Sunbea.s !as not a ,a"ty to t+is a*"ee.ent, it could not be a%%ected by it- Bo!e e", BanHons clai. %o" atto"neys %ees ,e"tainin* to Sunbea.s !as !ai ed by +i. not by i"tue o% t+e Co.,"o.ise '*"ee.ent, !+e"eby

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER4D

Sunbea.s !as not a de%endant- W+at .ilitates a*ainst +is clai. is +is o!n 3udicial ad.ission t+at +e +ad !ai ed +is atto"neys %ees %o" t+e cases +e +ad +andled %"o. 1#$:7 1#F1 %o" La,e"al and +is co",o"ations, includin* t+ose not i.,leaded in +is co.,laintPermissive 4!inder !f #arties Pa"ties .ay be 3oined in as ,lainti%%s o" de%endants in a sin*le co.,laint !+en /10 'ny "i*+t to "elie% a"ises out o% t+e sa.e t"ansaction o" se"ies o% t"ansactions9 /40 &+e"e is a ?uestion o% la! o" %act co..on to all suc+ ,lainti%%s o" to all suc+ de%endants9 /50 Suc+ 3oinde" is not ot+e"!ise ,"osc"ibed by t+e Rules on 3u"isdiction and enueBU& t+e cou"t .ay .a6e suc+ o"de"s as .ay be 3ust to ,"e ent any ,lainti%% o" de%endant %"o. bein* e.ba""assed o" ,ut to e8,ense in connection !it+ any ,"oceedin*s in !+ic+ +e .ay +a e no inte"est- /Sec- =, Rule 50 Effects !f mis4!inder and n!n)4!inder !f #arties ' ,a"ty is mis/oined !+en +e is .ade a ,a"ty to t+e action alt+ou*+ +e s+ould not be i.,leaded' ,a"ty is not /oined !+en is su,,osed to be 3oined but is not i.,leaded in t+e actions(eit+e" .is3oinde" no" non73oinde" o% ,a"ties is a *"ound %o" dis.issal- Pa"ties .ay be d"o,,ed o" added by o"de" o% t+e cou"t /10 on .otion o% any ,a"ty or on its o!n initiati e /40 at any sta*e o% t+e action and /50 on suc+ te".s as a"e 3ust'ny clai. a*ainst a .is3oined ,a"ty .ay be severed and ,"oceeded !it+ se,a"ately- /Sec- 11, Rule 50 (O&E2 Cailu"e to obey t+e o"de" o% t+e cou"t to d"o, o" add a ,a"ty is a *"ound %o" t+e dis.issal o% t+e co.,laint/Sec- 5, Rule 1$0 C ass suits ' class suit is an action !+e"e one o" .o"e .ay sue %o" t+e bene%it o% all 'n action does not beco.e a class suit .e"ely because it is desi*nated as suc+ in t+e ,leadin*sIt de,ends u,on t+e attendant %actsRe?uisites /10 &+e sub3ect .atte" o% t+e cont"o e"sy is one o% t+e co..on o" *ene"al inte"est to .any ,e"sons /40 &+e ,e"sons a"e so nu.e"ous t+at it is i.,"acticable to 3oin all as ,a"ties, /50 &+e ,a"ties b"in*in* t+e class suit a"e su%%iciently nu.e"ous and "e,"esentati e as to %ully ,"otect t+e inte"ests o% all conce"ned/:0 &+e "e,"esentati e sues o" de%ends %o" t+e bene%it o% all(O&E2 'ny ,a"ty in inte"est s+all +a e t+e "i*+t to inte" ene to ,"otect +is indi idual inte"est- /Sec- 14, Rule 50
)E(DE@, IV'( VIA&OR /4D, 150

MATHA. v. CONSOLIDATED BAN2 (5) SCRA 55% (%'4" Re?ui"e.ents o% a class suit2 1- &+at t+e sub3ect .atte" o% t+e cont"o e"sy be one o% co..on o" *ene"al inte"est to .any ,e"sons, and 4- &+at suc+ ,e"sons be so nu.e"ous as to .a6e it i.,"acticable to b"in* t+e. all to t+e cou"tC'C&S2 )at+ay, Reyes and Dionisio, ,lainti%%s7a,,ellants and stoc6+olde"s in t+e Consolidated )ines, Inc- /C)I0 alle*ed t+at t+e latte" ,assed a "esolution to o"*aniHe Consolidated Ban6 S &"ust Co- /CB&C0, ,"o idin* t+at all C)I stoc6+olde"s a"e entitled to subsc"ibe to t+e ca,ital stoc6 o% t+e ,"o,osed ban6 at ,a" alue, and to t+e sa.e e8tent and a.ount as t+ei" s+a"e+oldin*s in C)I- Ci"cula" lette"s !it+ P"e7Inco",o"ation '*"ee.ents to subsc"ibe !e"e sent to C)I stoc6+olde"s- Plainti%%s7a,ellants and ot+e" stoc6+olde"s acco.,lis+ed and %iled t+ei" "es,ecti e ,"e7inco",o"ation a*"ee.ents and ,aid t+e subsc"i,tionBo!e e", a%te" so.e .ont+s, t+e Boa"d o% O"*aniHe"s e8ecuted t+e '"ticles o% Inco",o"ation o% t+e CB&C !+ic+ "e%lected t+at only t+e si8 /=0 indi idual de%endants ,aid and subsc"ibed to t+e initial >D,DDD s+a"es- W+en t+e ,aid7 in ca,ital stoc6 !as inc"eased, t+e ,lainti%%7a,,ellants and ot+e" C)I stoc6+olde"s !e"e a*ain e8cluded- &+e ,lainti%%s7a,,ellants %iled t+is co.,laint as a class suit to annul and t"ans%e" t+e subsc"i,tion and s+a"e+oldin*s o% t+e de%endants to t+e. and ot+e" stoc6+olde"s !+o +ad been denied t+e "i*+t to subsc"ibe&+ey alle*ed as !ell t+at so.e o% t+e de%endants %alsely ce"ti%ied to t+e callin* o% a s,ecial stoc6+olde"sM .eetin*, !+en ,lainti%%s7a,,ellants and ot+e" C)I stoc6+olde"s !e"e not noti%ied t+e"eo%- Cu"t+e", t+e de%endants inc"eased t+e nu.be" o% Di"ecto"s, ille*ally c"eatin* t+e Position o% Di"ecto" %illed u, by a de%endant, !+o !as inco.,etentSe illa, one o% t+e o"i*inal ,lainti%%s, !it+d"e!Cou" C)I stoc6+olde"s %iled a .otion to inte" ene, and to 3oin t+e ,lainti%%s7a,,ellants on "eco"d, De%endants %iled a .otion to dis.iss on t+e *"ound t+at t+e ,lainti%%s +ad no le*al standin* o" ca,acity to institute t+e alle*ed class suitSo.e subsc"ibe"s to t+e ca,ital stoc6 o% t+e Ban6 %iled se,a"ate .ani%estations t+at t+ey !e"e o,,osin* and disaut+o"iHin* t+e suit o% ,lainti%%s7a,,ellants&+e de%endants7a,,ellee %iled a su,,le.ental *"ound %o" t+ei" .otion to dis.iss %o" t+e "eason t+at t+e stoc6+olde"s !+o +ad abstained at t+ei" "e*ula" annual .eetin* unani.ously "ati%ied and con%i".ed all t+e actuations o% t+e o"*aniHe"s- CCI *"anted t+e .otion to dis.iss, +ence t+e a,,ealISSUE2 .hether the instant action could be maintained as a class suit NO2 'n action does not beco.e a class suit .e"ely because it is desi*nated as suc+ in t+e ,leadin*sW+et+e" t+e suit is o" is not a class ?uit de,ends u,on t+e attendin* %acts, and t+e co.,laint, o" ot+e" ,leadin* initiatin* t+e class action s+ould alle*e t+e e8istence o% t+e necessa"y %acts, to !it, t+e e8istence o% a sub3ect .atte" o%

CIVIL PROCEDURE REVIEWER41

co..on inte"est, and t+e e8istence o% a class and t+e nu.be" o% ,e"sons in t+e alle*ed class, in o"de" t+at t+e cou"t .i*+t be enabled to dete".ine !+et+e" t+e .e.be"s o% t+e class a"e so nu.e"ous as to .a6e it i.,"acticable to b"in* t+e. all be%o"e t+e cou"t, to cont"ast t+e nu.be" a,,ea"in* on t+e "eco"d !it+ t+e nu.be" in t+e class and to dete".ine !+et+e" clai.ants on "eco"d ade?uately "e,"esent t+e class and t+e sub3ect .atte" o% *ene"al o" co..on inte"est&+e co.,laint in t+e instant case e8,licitly decla"ed t+at t+e ,lainti%%s7 a,,ellants instituted t+e Q,"esent class suit unde" Section 14, Rule 5, o% t+e Rules o% Cou"t in- be+al% o% C)I subsc"ibin* stoc6+olde"sQ but did not state t+e nu.be" o% said C)I subsc"ibin* stoc6+olde"s so t+at t+e t"ial cou"t could not in%e", .uc+ less ma6e sure as e8,licitly "e?ui"ed by t+e su%%iciently nu.e"ous and "e,"esentati e in o"de" t+at all statuto"y ,"o ision&+e inte"est t+at ,,ellants, ,lainti%%s and inte" eno"s, and t+e C)I stoc6+olde"s +ad in t+e sub3ect .atte" o% t+is suit 1 t+e ,o"tion o% stoc6s o%%e"in* o% t+e Ban6 le%t unsubsc"ibed by C)I stoc6+olde"s !+o %ailed to e8e"cise t+ei" "i*+t to subsc"ibe on o" be%o"e Janua"y 1>, 1#=5 1 !as se e"al, not co..on o" *ene"al in t+e sense "e?ui"ed by t+e statute- Eac+ one o% t+e a,,ellants and t+e C)I stoc6+olde"s +ad dete".inable inte"est9 eac+ one +ad a "i*+t, i% any, only to +is "es,ecti e ,o"tion o% t+e stoc6s(o one o% t+e. +ad any "i*+t to, o" any inte"est in, t+e stoc6 to !+ic+ anot+e" !as entitledE en i% it be assu.ed, %o" t+e sa6e o% a"*u.ent, t+at t+e a,,ellants and t+e C)I stoc6+olde"s su%%e"ed !"on*s t+at +ad been co..itted by si.ila" .eans and e en ,u"suant to a sin*le ,lan o% t+e Inte"i. Boa"d o% O"*aniHe"s o% t+e Ban6, t+e !"on* su%%e"ed by eac+ o% t+e. !ould constitute a !"on* se,a"ate %"o. t+ose su%%e"ed by t+e ot+e" stoc6+olde"s, and t+ose !"on*s alone !ould not c"eate t+at co..on o" *ene"al inte"est in t+e sub3ect .atte" o% t+e cont"o e"sy as !ould entitle any one o% t+e. to b"in* a class suit on be+al% o% t+e ot+e"s&+e "i*+t to ,"ee.,tion, it +as been said, is ,e"sonal to eac+ stoc6+olde"- By analo*y, t+e "i*+t o% eac+ o% t+e a,,ellants to subsc"ibe to t+e !ai ed stoc6s !as ,e"sonal, and no one o% t+e. could .aintain on be+al% o% ot+e"s si.ila"ly situated a "e,"esentati e suit-

W+e"e t+e ,lainti%% is unce"tain a*ainst !+o o% se e"al ,e"sons +e is entitled to "elie%, +e .ay 3oin any o" all o% t+e. as de%endants in t+e alte"nati e, alt+ou*+ a "i*+t to "elie% a*ainst one .ay be inconsistent !it+ a "i*+t o% "elie% a*ainst t+e ot+e"- /Sec- 15, Rule 50 +,am%le2 ' ,edest"ian in3u"ed in t+e collision o% t!o e+icles .ay sue t+e e+icle o!ne"s o" d"i e"s in t+e alte"nati e i% +e is unce"tain !+ose e+icle caused t+e in3u"y&7( Un*n!wn defendant W+ene e" t+e identity o" na.e o% a de%endant is un6no!n, +e .ay be sued /10 as t+e un6no!n o!ne", +ei", de isee, or /40 by suc+ ot+e" desi*nation as t+e case .ay "e?ui"e9 W+en +is identity o" t"ue na.e is disco e"ed, t+e ,leadin* .ust be a.ended acco"din*ly- /Sec- 1:, Rule 50 $ervice u%on defendant whose identity or whereabouts are un6nown# Se" ice .ay, by lea e o% cou"t, be e%%ected by ,ublication in a ne!s,a,e" o% *ene"al ci"culation and in suc+ ,laces and %o" suc+ ti.e as t+e cou"t .ay o"de" in any action !+e"e /10 t+e de%endant is desi*nated as an un6no!n o!ne", o" t+e li6e, or /40 !+ene e" +is !+e"eabouts a"e un6no!n and cannot be asce"tained by dili*ent in?ui"y- /Sec1:, Rule 1:0 &A( Entit. wit+!ut 4uridica #ers!na it. as defendant W+en t!o o" .o"e ,e"sons not o"*aniHed as an entity !it+ 3u"idical ,e"sonality ente" into a t"ansaction, t+ey .ay be sued unde" t+e na.e by !+ic+ t+ey a"e *ene"ally o" co..only 6no!nIn t+e ans!e" o% suc+ de%endant t+e na.es and add"esses o% t+e ,e"sons co.,osin* said entity must all be "e ealed- /Sec- 1>, Rule 50

Defendants &'( Unwi in$ c!)# aintiff 'n unwilling co2%laintiff is a ,a"ty !+o is su,,osed to be a ,lainti%% but !+ose consent to be 3oined as a ,lainti%% cannot be obtained, as !+en +e "e%uses to be a ,a"ty to t+e action- In t+at case, /10 +e .ay be .ade a de%endant and /40 t+e "eason t+e"e%o" s+all be stated in t+e co.,laint- /Sec- 1D, Rule 50 &5( A ternative defendant

$ervice u%on entity without /uridical %ersonality#- Se" ice .ay be e%%ected u,on all t+e de%endants by se" in* u,on /10 any one o% t+e., or /40 u,on t+e ,e"son in c+a"*e o% t+e o%%ice o" ,lace o% business .aintained in suc+ na.eBU& suc+ se" ice shall not bind indi idually any ,e"son !+ose connection !it+ t+e entity +as, u,on due notice, been se e"ed before t+e action !as b"ou*+t- /Sec- F, Rule 1:0 Deat+ !f #art.B dut. !f c!unse &'( If # aintiff dies durin$ #endenc. !f t+e case W+ene e" a ,a"ty to a ,endin* action dies, and t+e clai. is not t+e"eby e8tin*uis+ed, it s+all be t+e duty o% +is counsel

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER44

/10 to in%o". t+e cou"t !it+in t+i"ty /5D0 days a%te" suc+ deat+ o% t+e %act t+e"eo%, and /40 to *i e t+e na.e and add"ess o% +is le*al "e,"esentati e o" "e,"esentati es(O&E2 &+is duty is mandatory# Cailu"e o% counsel to co.,ly !it+ t+is duty s+all be a *"ound %o" disci,lina"y actionA%on notice of death, action of court U,on "ecei,t o% notice o% deat+, t+e cou"t s+all dete".ine !+et+e" t+e clai. is e8tin*uis+ed by t+e deat+- I% t+e clai. does not su" i e, t+e cou"t shall dismiss t+e case1f the claim survives, substitution &+e cou"t s+all %o"t+!it+ o"de" said le*al "e,"esentati e o" "e,"esentati es to a,,ea" and be substituted !it+in a ,e"iod o% t+i"ty /5D0 days %"o. notice &+e +ei"s o% t+e deceased .ay be allo!ed to be substituted %o" t+e deceased, without "e?ui"in* t+e a,,oint.ent o% an e8ecuto" or ad.inist"ato" and t+e cou"t .ay a,,oint a *ua"dian ad litem %o" t+e .ino" +ei"s(O&E2 &+e +ei"s do not need to %i"st secu"e t+e a,,oint.ent o% an ad.inist"ato" &+e cou"t .ay o"de" t+e o,,osin* ,a"ty, !it+in a s,eci%ied ti.e, to ,"ocu"e t+e a,,oint.ent o% an e8ecuto" o" ad.inist"ato" %o" t+e estate o% t+e deceased i%2 ino le*al "e,"esentati e is na.ed by t+e counsel %o" t+e deceased ,a"ty or iii% t+e one so na.ed s+all %ail to a,,ea" !it+in t+e s,eci%ied ,e"iod, &+e latte" s+all i..ediately a,,ea" %o" and on be+al% o% t+e deceased- &+e cou"t c+a"*es in ,"ocu"in* suc+ a,,oint.ent, i% de%"ayed by t+e o,,osin* ,a"ty, .ay be "eco e"ed as costs- /Sec1=, Rule 50

ii-

t+e de%endant dies before ent"y o% %inal 3ud*.ent in t+e cou"t in !+ic+ t+e action !as ,endin* at t+e ti.e o% suc+ deat+

' %a o"able 3ud*.ent obtained by t+e ,lainti%% t+e"ein s+all be en%o"ced in t+e .anne" es,ecially ,"o ided in t+ese Rules %o" ,"osecutin* clai.s a*ainst t+e estate o% a deceased ,e"son- /Sec- 4D, Rule 50 Effect !f n!n)substituti!n !f deceased #art. (on7co.,liance !it+ t+e "ules on substitution o% a deceased ,a"ty "ende"s t+e ,"oceedin*s o% t+e t"ial cou"t in%i". because it ac?ui"ed no 3u"isdiction o e" t+e ,e"son o% t+e le*al "e,"esentati e o% +ei"s o% t+e deceased Bo!e e", in an e3ect.ent case, non7substitution o% t+e deceased does not de,"i e t+e cou"t o% 3u"isdiction /Florendo =r# v# Colona0 HEIRS OF BERTULDO HINOG v. MELICOR (455 SCRA 460 !005" (on7co.,liance !it+ t+e "ule on substitution !ould "ende" t+e ,"oceedin*s and 3ud*.ent o% t+e t"ial cou"t in%i". because t+e cou"t ac?ui"es no 3u"isdiction o e" t+e ,e"sons o% t+e le*al "e,"esentati es o" o% t+e +ei"s on !+o. t+e t"ial and t+e 3ud*.ent !ould be bindin*-

C'C&S2 Res,ondents %iled a co.,laint a*ainst Be"tuldo %o" "eco e"y o% o!ne"s+i, o% t+e ,"e.ises leased by t+e latte"- Be"tuldo alle*ed o!ne"s+i, o% t+e ,"o,e"ty by i"tue o% a Deed o% 'bsolute Sale- Be"tuldo died !it+out co.,letin* +is e idence du"in* t+e di"ect e8a.ination'tty- Petalco"in "e,laced t+e o"i*inal counsel and %iled a .otion to e8,un*e t+e co.,laint %"o. t+e "eco"d and nulli%y all cou"t ,"oceedin*s on t+e *"ound t+at ,"i ate "es,ondents %ailed to s,eci%y in t+e co.,laint t+e a.ount o% da.a*es clai.ed as needed to ,ay t+e co""ect doc6et %ees, and t+at unde" Manchester doct"ine, non7 ,ay.ent o% t+e co""ect doc6et %ee is 3u"isdictionalISSUE2 .hether the %roceedings in the trial court are infirm 6ES2 (o %o".al substitution o% t+e ,a"ties !as e%%ected !it+in t+i"ty /5D0 days %"o. date o% deat+ o% Be"tuldo, as "e?ui"ed by Sec- 1=, Rule 5 o% t+e Rules o% Cou"t- (eedless to st"ess, t+e ,u",ose be+ind t+e "ule on substitution is t+e ,"otection o% t+e "i*+t o% e e"y ,a"ty to due ,"ocess- It is to ensu"e t+at t+e deceased !ould continue to be ,"o,e"ly "e,"esented in t+e suit t+"ou*+ t+e duly a,,ointed le*al "e,"esentati e o% +is estate- (on7 co.,liance !it+ t+e "ule on substitution !ould "ende" t+e ,"oceedin*s and 3ud*.ent o% t+e t"ial cou"t in%i". because t+e cou"t ac?ui"es no 3u"isdiction o e" t+e ,e"sons o% t+e le*al "e,"esentati es o" o% t+e +ei"s on !+o. t+e t"ial and t+e 3ud*.ent !ould be bindin*DE LA CRU/ v. -OA,UIN (464 SCRA 5'6 !005"

+,am%les of actions which survive the %artyBs death 'ctions a"isin* %"o. delict 'ctions based on to"tuous conduct o% t+e de%endant 'ctions to "eco e" "eal and ,e"sonal ,"o,e"ty 'ctions to en%o"ce a lien on ,"o,e"ty 'ctions to ?uietin* o% title !it+ da.a*es E3ect.ent case 'ctions %o" "eco e"y o% .oney &5( If defendant dies" effect !f +is deat+ de#ends u#!n t+e nature !f t+e #endin$ acti!n .hen action will not be dismissed &+e action !ill be allo!ed to continue until ent"y o% %inal 3ud*.ent !+en2 it+e action is %o" "eco e"y o% .oney a"isin* %"o. cont"act, e8,"ess o" i.,lied, and

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER45

W+en due ,"ocess is not iolated, as !+en t+e "i*+t o% t+e "e,"esentati e o" +ei" is "eco*niHed and ,"otected, nonco.,liance o" belated %o".al co.,liance !it+ t+e Rules cannot a%%ect t+e alidity o% a ,"o.ul*ated decision- )e"e %ailu"e to substitute %o" a deceased ,lainti%% is not a su%%icient *"ound to nulli%y a t"ial cou"tMs decision- &+e alle*in* ,a"ty .ust ,"o e t+at t+e"e !as an undeniable iolation o% due ,"ocessC'C&S2 Ped"o Joa?uin alle*ed t+at +e +ad obtained a P#,DDD loan, ,ayable a%te" %i e />0 yea"s, %"o. ,etitione"s, t+e s,ouses De la C"uH- &o secu"e t+e ,ay.ent o% t+e obli*ation, +e e8ecuted a Deed o% Sale %o" a ,a"cel o% land in %a o" o% ,etitione"s- &+e ,a"ties also e8ecuted anot+e" docu.ent entitled 7asunduan !+ic+ alle*edly s+o!ed t+e Deed o% Sale to be actually an e?uitable .o"t*a*e- S,ouses De la C"uH contended t+at t+is docu.ent !as .e"ely an acco..odation to allo! t+e "e,u"c+ase o% t+e ,"o,e"ty, a "i*+t t+at +e %ailed to e8e"cise&+e R&C issued a Decision in Joa?uins %a o", decla"in* t+at t+e ,a"ties +ad ente"ed into a sale !it+ a "i*+t o% "e,u"c+ase- It +eld t+at "es,ondent +ad .ade a alid tende" o% ,ay.ent on t!o se,a"ate occasions to e8e"cise +is "i*+t o% "e,u"c+ase- 'cco"din*ly, ,etitione"s !e"e "e?ui"ed to "econ ey t+e ,"o,e"ty u,on +is ,ay.entC' sustained t+e "ulin* o% t+e t"ial cou"t, and denied "econside"ation- It %u"t+e" o"de"ed t+e substitution by le*al "e,"esentati es, in ie! o% Joa?uins deat+- Petitione"s asse"t t+e R&C lac6ed 3u"isdiction since t+e "es,ondent died du"in* t+e ,endency o% t+e case and no substitution !as .ade-

C'C&S2 Caustino 'costa too6 ,ossession o% a ,a"cel o% *o e"n.ent land !+ic+ !as o"i*inally intended to be used as a site %o" a le,"osa"iu.- Be subse?uently "e*iste"ed t+e land and built a %ence a"ound itPaulino Calanday int"uded u,on 'costas land !it+out t+e %o".e"s ,e".ission and built a bee"+ouse on it- 'costa "e.onst"ated so Calanday %iled a c"i.inal case %o" Un3ust Ve8ation and )alicious )isc+ie%9 it !as +o!e e", dis.issedCalanday t+en con eyed t+e bee"+ouse to Juanita Roces !+o a*"eed to ,ay a P=D .ont+ly "ental to 'costaS+e t+en con eyed t+e ,"e.ises to C+a"les Li.bauan, ,etitione" in t+e ,"esent case- ' %e! .ont+s late", ,etitione" sto,,ed ,ayin* "entals so "es,ondent %iled a case %o" unla!%ul detaine" a*ainst "es,ondent- Petitione" "easoned t+at since t+e land belon*ed to t+e *o e"n.ent, "es,ondent +ad no "i*+t to collect "entals t+e"e%"o.- Bence t+e suit !as ne e" continuedEi*+t yea"s late", t+e *o e"n.ent con e"ted t+e ,a"cel o% land in !+ic+ t+e ,"e.ises in dis,ute a"e included into "esidential land- Res,ondent t+en "e i ed +is ,"e ious suit o% unla!%ul detaine" a*ainst ,etitione"- Un%o"tunately, 'costa died !+ile t+e case !as still on a,,eal to t+e C'Petitione" a e"s t+at t+e case +as beco.e .oot and acade.ic since +e !as not in%o".ed o% t+e deat+ o% "es,ondent and no ,"o,e" substitution o% ,a"ties !as instituted-

ISSUES2 .hether the trial court lost /urisdiction over the case u%on the death of Pedro =oa3uin NO2 St"ictly s,ea6in*, t+e "ule on t+e substitution by +ei"s is not a .atte" o% 3u"isdiction, but a "e?ui"e.ent o% due ,"ocess- &+us, !+en due ,"ocess is not iolated, as !+en t+e "i*+t o% t+e "e,"esentati e o" +ei" is "eco*niHed and ,"otected, nonco.,liance o" belated %o".al co.,liance !it+ t+e Rules cannot a%%ect t+e alidity o% a ,"o.ul*ated decision- )e"e %ailu"e to substitute %o" a deceased ,lainti%% is not a su%%icient *"ound to nulli%y a t"ial cou"tMs decision- &+e alle*in* ,a"ty .ust ,"o e t+at t+e"e !as an undeniable iolation o% due ,"ocess&+e "eco"ds o% t+e ,"esent case contain a )otion %o" Substitution o% Pa"ty Plainti%% %iled be%o"e t+e C'- It !as dee.ed *"anted and t+e +ei"s, to +a e substituted %o" t+e deceased, Ped"o Joa?uin- &+e"e bein* no iolation o% due ,"ocess, t+e issue o% substitution cannot be +eld as a *"ound o% nulli%y t+e cou"ts decisionLIMBAUAN v. ACOSTA (!006" &+e instant action %o" unla!%ul detaine", li6e any action %o" "eco e"y o% "eal ,"o,e"ty, is a "eal action and as suc+ su" i es t+e deat+ o% Caustino 'costa-

ISSUE2 .hether the case has become moot and academic due to the death of res%ondent and the failure to substitute his heirs as %arties to the case NO2 It is !ell settled t+at t+e %ailu"e o% counsel to co.,ly !it+ +is duty unde" Section 1= to in%o". t+e cou"t o% t+e deat+ o% +is client and no substitution o% suc+ ,a"ty is e%%ected, !ill not in alidate t+e ,"oceedin*s and t+e 3ud*.ent t+e"eon i% t+e action su" i es t+e deat+ o% suc+ ,a"ty- )o"eo e", t+e decision "ende"ed s+all bind +is successo"7in7inte"est- &+e instant action %o" unla!%ul detaine", li6e any action %o" "eco e"y o% "eal ,"o,e"ty, is a "eal action and as suc+ su" i es t+e deat+ o% Caustino 'costa- Bis +ei"s +a e ta6en +is ,lace and no! "e,"esent +is inte"ests in t+e instant ,etition- Bence, t+e ,"esent case cannot be "ende"ed .oot des,ite t+e deat+ o% "es,ondentDeat+ !r se#arati!n !f #art. w+! is a #ub ic !fficer 'n action .ay be continued by o" a*ainst t+e successo" o% t+e deceased ,ublic o%%ice" !+en /10 a ,ublic o%%ice" is a ,a"ty in an action in +is o%%icial ca,acity and /40 dies, "esi*ns, o" ot+e"!ise ceases to +old o%%ice du"in* its ,endency, /50 it is s+o!n !it+in t+i"ty /5D0 days a%te" t+e successo" ta6es o%%ice o" suc+ ti.e as t+e cou"t .ay *"ant, t+at t+e"e is a substantial need %o" continuin* o" .aintainin* t+e action, and t+at /:0 t+e successo" ado,ts o" continues o" t+"eatens to ado,t o" continue t+e action o% +is ,"edecesso"/>0 t+e ,a"ty o" o%%ice" to be a%%ected, unless e8,"essly assentin* t+e"eto, +as been *i en "easonable notice o% t+e a,,lication t+e"e%o" and

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER4:

acco"ded an o,,o"tunity to be +ea"d- /Sec- 1$, Rule 50 Inc!m#etenc. !r inca#acit. I% a ,a"ty beco.es inco.,etent o" inca,acitated, t+e cou"t, u%on motion !it+ notice, .ay allo! t+e action to be continued by o" a*ainst t+e inco.,etent o" inca,acitated ,e"son assisted by +is le*al *ua"dian o" *ua"dian ad litem- /Sec- 1F, Rule 50

/$0 o" "e*ulations, Be .ay be +ea"d in ,e"son or t+"ou*+ a "e,"esentati e duly desi*nated by +i.- /Sec- 44, Rule 50 (O&E2 'ctions %iled in t+e na.e o% t+e Re,ublic o" its a*encies and inst"u.entalities, i% not initiated by t+e Solicito" Eene"al s+all be summarily dismissed-

VENUE O, AC1IONS &RULE A( 1ransfer !f interest In case o% any t"ans%e" o% inte"est, t+e action .ay be continued by o" a*ainst t+e o"i*inal ,a"ty, unless t+e cou"t u,on .otion di"ects t+e ,e"son to !+o. t+e inte"est is t"ans%e""ed /10 to be substituted in t+e action or /40 3oined !it+ t+e o"i*inal ,a"ty- /Sec- 1#, Rule 50 Indi$ent #art. ' ,a"ty .ay be aut+o"iHed to liti*ate +is action, clai. o" de%ense as an indi*ent i% t+e cou"t, u,on an e, %arte a,,lication and +ea"in*, is satis%ied t+at t+e ,a"ty is one !+o +as no .oney o" ,"o,e"ty su%%icient and a ailable %o" %ood, s+elte" and basic necessities %o" +i.sel% and +is %a.ilySuc+ aut+o"ity s+all include /10 an e8e.,tion %"o. ,ay.ent o% doc6et and ot+e" la!%ul %ees, and /40 o% t"ansc"i,ts o% steno*"a,+ic notes !+ic+ t+e cou"t .ay o"de" to be %u"nis+ed +i.&+e a.ount o% t+e doc6et and ot+e" la!%ul %ees !+ic+ t+e indi*ent !as e8e.,ted %"o. ,ayin* s+all be a lien on any 3ud*.ent "ende"ed in t+e case %a o"able to t+e indi*ent, unless t+e cou"t ot+e"!ise ,"o ides'ny ad e"se ,a"ty .ay contest t+e *"ant o% suc+ aut+o"ity at any time before 3ud*.ent is "ende"ed by t+e t"ial cou"tI% t+e cou"t s+ould dete".ine a%te" +ea"in* t+at t+e ,a"ty decla"ed as an indi*ent is in %act a ,e"son !it+ su%%icient inco.e o" ,"o,e"ty, t+e ,"o,e" doc6et and ot+e" la!%ul %ees s+all be assessed and collected by t+e cle"6 o% cou"t- I% t+e ,ay.ent is not .ade !it+in t+e ti.e %i8ed by t+e cou"t, e,ecution s+all issue o" t+e ,ay.ent t+e"eo%, !it+out ,"e3udice to suc+ ot+e" sanctions as t+e cou"t .ay i.,ose/Sec- 41, Rule 50 N!tice t! S! icit!r %enera &+e cou"t, in its disc"etion, .ay "e?ui"e t+e a,,ea"ance o% t+e Solicito" Eene"al in any action in ol in* t+e alidity o% any /10 t"eaty, /40 la!, /50 o"dinance, /:0 e8ecuti e o"de", />0 ,"esidential dec"ee, /=0 "ules
)E(DE@, IV'( VIA&OR /4D, 150

Venue defined @enue is t+e ,lace o" t+e *eo*"a,+ical a"ea !+e"e an action is to be %iled and t"ied- It "elates only to t+e ,lace o% t+e suit and not to t+e 3u"isdiction o% t+e cou"t Venue beco.es 3u"isdiction only in a c"i.inal case &+e ,a"ties can waive t+e enue o% a case-

Distin$uis+ed fr!m 4urisdicti!n VE(UE &+e ,lace !+e"e t+e case is to be +ea"d o" t"ied ' .atte" o% ,"ocedu"al la! Establis+es a "elation bet!een ,lainti%% and de%endant, o" ,etitione" and "es,ondent )ay be con%e""ed by t+e act o" a*"ee.ent o% t+e ,a"ties (ot a *"ound %o" motu %ro%rio dis.issal, e8ce,t in su..a"y ,"ocedu"e JURISDIC&IO( &+e aut+o"ity to +ea" and dete".ine a case )atte" o% substanti e la! Establis+es a "elation bet!een t+e cou"t and t+e sub3ect .atte" Ci8ed by la! and cannot be con%e""ed by a*"ee.ent o% t+e ,a"ties Lac6 o% 3u"isdiction o e" t+e sub3ect .atte" is a *"ound %o" a motu %ro%rio dis.issal

Venue !f rea acti!ns !eal action-action a%%ectin* title to o" ,ossession o% "eal ,"o,e"ty, o" inte"est t+e"einReal actions s+all be co..enced and t"ied in t+e ,"o,e" cou"t !+ic+ +as 3u"isdiction o e" t+e a"ea !+e"ein t+e "eal ,"o,e"ty in ol ed, o" a ,o"tion t+e"eo%, is situatedCo"cible ent"y and detaine" actions s+all be co..enced and t"ied in t+e .unici,al t"ial cou"t o% t+e .unici,ality o" city !+e"ein t+e "eal ,"o,e"ty in ol ed, o" a ,o"tion t+e"eo%, is situated- /Sec- 1, Rule :0 Venue !f #ers!na acti!ns Pe"sonal actions .ay be co..enced and t"ied !+e"e t+e ,lainti%% o" any o% t+e ,"inci,al ,lainti%%s, or !+e"e t+e de%endant o" any o% t+e ,"inci,al de%endants "esides, at t+e election o% t+e ,lainti%%-

CIVIL PROCEDURE REVIEWER4>

In t+e case o% a non7"esident de%endant it .ay be co..enced and t"ied !+e"e +e .ay be %ound, at t+e election o% t+e ,lainti%%- /Sec- 4, Rule :0 Venue !f acti!ns a$ainst n!n)residents I% any o% t+e de%endants /10 does not "eside and is not %ound in t+e P+ili,,ines, and /40 t+e action a%%ects t+e ,e"sonal status o% t+e ,lainti%%, or any ,"o,e"ty o% said de%endant located in t+e P+ili,,ines, t+e action .ay be co..enced and t"ied in t+e cou"t o% t+e ,lace !+e"e t+e ,lainti%% "esides, or !+e"e t+e ,"o,e"ty o" any ,o"tion t+e"eo% is situated o" %ound8uasi in rem 'ctions !+ic+ a%%ect t+e ,e"sonal status o% t+e ,lainti%% a"e to be %iled at t+e "esidence o% t+e ,lainti%%In rem 'ctions a%%ectin* t+e ,"o,e"ty o% t+e de%endant in t+e P+ili,,ines s+all be %iled !+e"e t+e ,"o,e"ty is locatedW+en ru e n!t a## icab e &+is Rule s+all not a,,ly1 /a0 In t+ose cases !+e"e a s,eci%ic "ule o" la! ,"o ides ot+e"!ise9 o" /b0 W+e"e t+e ,a"ties +a e alidly a*"eed in !"itin* be%o"e t+e %ilin* o% t+e action on t+e e8clusi e enue t+e"eo%- /Sec- :, Rule :0 &a( W+ere a s#ecific ru e !r aw #r!vides !t+erwise DIA/ v. ADIONG (!(% SCRA 6&( (%%&" 'n o%%ended ,a"ty !+o is at t+e sa.e ti.e a ,ublic o%%icial can only institute an action a"isin* %"o. libel in 4 enues2 /10 t+e ,lace !+e"e +e +olds o%%ice9 o" /40 t+e ,lace !+e"e t+e alle*ed libelous a"ticles !e"e ,"inted and %i"st ,ublis+ed Venue in an action a"isin* %"o. libel is only .andato"y i% it is not !ai ed by de%endant- &+us, ob3ections to enue in ci il actions a"isin* %"o. libel .ay be !ai ed9 it does not, a%te" all, in ol e a ?uestion o% 3u"isdictionC'C&S2 &+e Mindanao 7ris, a ne!s,a,e" o% *ene"al ci"culation in Cotabato City, ,ublis+ed in its %"ont ,a*e t+e ne!s a"ticle ca,tioned G=7Point Co.,laint Ciled s)acu.bal,K and in its Publis+e"s (otes t+e edito"ial, G&oll o% Co""u,tion,K !+ic+ e8,osed alle*ed ano.alies by 6ey o%%icials in t+e Re*ional O%%ice o% t+e DE(RSubse?uently, t+e ,ublic o%%ice"s alluded to instituted se,a"ate c"i.inal and ci il co.,laints in t+e City P"osecuto"s O%%ice and R&C in )a"a!i City- DiaH, ,ublis+e"7edito", and Pa*anda.an, !+o e8ecuted a s!o"n state.ent attestin* t+e alle*ed co""u,tion !e"e na.ed
)E(DE@, IV'( VIA&OR /4D, 150

"es,ondents- &+e City P"osecuto"s O%%ice dis.issed t+e c"i.inal case&+e"ea%te", a ci il co.,laint %o" da.a*es !as %iled- DiaH %iled an ans!e", t+en late" .o ed %o" t+e dis.issal o% t+e action %o" da.a*es on t+e *"ound t+at t+e t"ial cou"t did not +a e 3u"isdiction o e" t+e sub3ect .atte"Be e+e.ently a"*ued t+at t+e co.,laint s+ould +a e been %iled in Cotabato City and not in )a"a!i City- &+e "es,ondent 3ud*e denied ,etitione"s )otion to Dis.iss %o" lac6 o% .e"itISSUE2 .hether the venue was im%ro%erly laid NO" ,etitione" is not co""ectPetition is dis.issed %o" lac6 o% .e"it- &+e case is "e.anded to t+e cou"t o% o"i*in %o" %u"t+e" ,"oceedin*s(ot one o% t+e "es,ondents +eld o%%ice in Cotabato City no" t+ey +eld t+ei" ,"inci,al o%%ice in t+at ,"o ince- It is clea" t+at an o%%ended ,a"ty !+o is at t+e sa.e ti.e a ,ublic o%%icial can only institute an action a"isin* %"o. libel in 4 enues2 /10 t+e ,lace !+e"e +e +olds o%%ice9 o" /40 t+e ,lace !+e"e t+e alle*ed libelous a"ticles !e"e ,"inted and %i"st ,ublis+ed- /'"t- 5=D, RPC0 Venue !as indeed i.,"o,e"ly laid- Bo!e e", unless and until t+e de%endant ob3ects to t+e enue in a .otion to dis.iss ,"io" to a "es,onsi e ,leadin*, t+e enue in a .otion to dis.iss cannot t"uly be said to +a e been i.,"o,e"ly laid since, %o" all ,"actical intents and ,u",oses, t+e enue t+ou*+ tec+nically !"on* .ay yet be conside"ed acce,table to t+e ,a"ties %o" !+ose con enience t+e "ules on enue +ad been de ised- DiaH, t+en, as de%endant s+ould +a e ti.ely c+allen*ed t+e enue laid in )a"a!i City in a .otion to dis.iss, ,u"suant to Rule :, Sec- :, o% t+e Rules o% Cou"t- Un%o"tunately, +e +ad al"eady sub.itted +i.sel% to t+e 3u"isdiction o% t"ial cou"t !+en +e %iled +is 'ns!e"- Well7settled is t+e "ule t+at i.,"o,e" enue .ay be !ai ed and suc+ !ai e" .ay occu" by lac+es- )o"eo e", enue in an action a"isin* %"o. libel is only .andato"y i% it is not !ai ed by de%endant- &+us, ob3ections to enue in ci il actions a"isin* %"o. libel .ay be !ai ed9 it does not, a%te" all, in ol e a ?uestion o% 3u"isdiction- &+e layin* o% enue is ,"ocedu"al "at+e" t+an substanti e, "elatin* as it does to 3u"isdiction o% t+e cou"t o e" t+e ,e"son "at+e" t+an t+e sub3ect .atte"- Venue "elates to t"ial and not 3u"isdictionCu"t+e".o"e, Rule 1=, Sec- 1, ,"o ides t+at ob3ections to i.,"o,e" enue .ust be .ade in a .otion to dis.iss be%o"e any "es,onsi e ,leadin* is %iledRes,onsi e ,leadin*s a"e t+ose !+ic+ see6 a%%i".ati e "elie% and set u, de%enses- Ba in* al"eady sub.itted +is ,e"son to t+e 3u"isdiction o% t+e cou"t, ,etitione" .ay no lon*e" ob3ect to t+e enue !+ic+, alt+ou*+ .andato"y in t+e instant case, is ne e"t+eless !ai able- 's suc+, i.,"o,e" enue .ust be seasonably "aised- Ot+e"!ise, it .ay be dee.ed !ai ed&b( W+ere #arties +ave va id . a$reed in writin$ !n t+e e3c usive venue t+ere!f bef!re t+e fi in$ !f t+e acti!n &+e ,a"ties .ay a*"ee on a s,eci%ic enue !+ic+ could be in a ,lace !+e"e neit+e" o% t+e. "esides, as lon* as t+e a*"ee.ent is2 /10 In !"itin*9 /40 )ade be%o"e t+e %ilin* o% t+e action9 and

CIVIL PROCEDURE REVIEWER4=

/50 E8clusi e as to t+e enue# LEGAS#I v. RE#UBLIC (55% SCRA 4(0 !00)" It .ust be s+o!n t+at suc+ sti,ulation as to enue is e8clusi e- In t+e absence o% ?uali%yin* o" "est"icti e !o"ds, suc+ as Qe8clusi ely,Q Q!ai in* %o" t+is ,u",ose any ot+e" enue,Q Qs+all onlyQ ,"ecedin* t+e desi*nation o% enue, Qto t+e e8clusion o% t+e ot+e" cou"ts,Q o" !o"ds o% si.ila" i.,o"t, t+e sti,ulation s+ould be dee.ed as .e"ely an a*"ee.ent on an additional %o"u., not as li.itin* enue to t+e s,eci%ied ,lace-

!+e"e actions a"isin* %"o. t+e Const"uction '*"ee.ent s+ould be %iledPetitione", +o!e e", contends t+at t+e case does not a"ise %"o. t+e Const"uction '*"ee.ent9 +ence, it .ay be %iled in )a6ati City, !+ic+ is +is ,lace o% "esidenceCont"a"y to ,etitione"Ms contention, t+e alle*ations in +is co.,laint indubitably s+o! t+at +is cause o% action a"ose %"o. t+e Const"uction '*"ee.ent-

Waiver !f im#r!#er venue &'( E3#ress waiver )ade t+"ou*+ !"itten a*"ee.ent &5( Im# ied waiver )ade t+"ou*+ %ailu"e to seasonably ob3ect to i.,"o,e" enue in a .otion to dis.iss o" in t+e ans!e" DACO.CO. v. IAC ((%5 SCRA 64( (%%&" W+e"e de%endant %ails to c+allen*e ti.ely t+e enue in a .otion to dis.iss as ,"o ided by Section : o% Rule : o% t+e Rules o% Cou"t, and allo!s t+e t"ial to be +eld and a decision to be "ende"ed, +e cannot on a,,eal o" in a s,ecial action be ,e".itted to c+allen*e belatedly t+e !"on* enue, !+ic+ is dee.ed !ai ed-

C'C&S2 Jesusito D- Le*as,i, as o!ne" and .ana*e" o% ,etitione" J-D- Le*as,i Const"uction, ente"ed into a Const"uction '*"ee.ent !it+ "es,ondent Social Secu"ity Syste. /SSS0 %o" t+e const"uction o% a %ou"7sto"ey buildin* in Ba*uio City !+ic+ !ill se" e as "es,ondentMs b"anc+ o%%ice&+e P+ili,,ine ,eso colla,sed as a*ainst t+e U-SDolla" in 1##$, t+us t+e cost o% i.,o"ted .ate"ials !+ic+ ,etitione" cont"acted to use and install on t+e ,"o3ect s+ot u,, and ,etitione" incu""ed e8,enses .o"e t+an t+e o"i*inal cont"act ,"ice- Petitione" +ad se e"al .eetin*s !it+ "es,ondentMs "e,"esentati es du"in* !+ic+ +e in%o".ed t+e. o% +is di%%iculty in .eetin* +is obli*ations unde" t+e cont"act due to t+e ,eso de aluation- '%te" se e"al %ailed .eetin*s, ,etitione" sent a lette" to "es,ondent "e?uestin* an ad3ust.ent in t+e cont"act ,"ice, !+ic+ !as denied by "es,ondentBence, ,etitione" %iled a ci il action !it+ t+e R&C- Instead o% %ilin* an ans!e", "es,ondent, "e,"esented by t+e OSE, %iled a )otion to Dis.iss on t+e *"ounds t+at enue !as i.,"o,e"ly laid and ,etitione" +ad no cause o% action- It !as "es,ondentMs a"*u.ent t+at t+e Const"uction '*"ee.ent ,"o ided t+at all actions .ay be b"ou*+t be%o"e t+e ,"o,e" cou"t in PueHon City and t+at ,etitione" !ai ed any ot+e" enue- &+e R&C denied "es,ondentMs )otion to Dis.iss- Res,ondent .o ed to "econside" t+e O"de" but t+is !as denied by t+e R&C- &+e ,etition %o" certiorari !it+ t+e Cou"t o% ',,eals !as *"anted- Bence, t+e ,"esent ,etition %o" "e ie! on certiorari unde" Rule :> o% t+e Rules o% Cou"tISSUE2 .hether the sti%ulation as to venue in this case is controlling 6ES2 's "e*a"ds restrictive sti,ulations on enue, 3u"is,"udence inst"ucts t+at it .ust be s+o!n t+at suc+ sti,ulation is e8clusi e- In t+e absence o% ?uali%yin* o" "est"icti e !o"ds, suc+ as Qe8clusi ely,Q Q!ai in* %o" t+is ,u",ose any ot+e" enue,Q Qs+all onlyQ ,"ecedin* t+e desi*nation o% enue, Qto t+e e8clusion o% t+e ot+e" cou"ts,Q o" !o"ds o% si.ila" i.,o"t, t+e sti,ulation s+ould be dee.ed as .e"ely an a*"ee.ent on an additional %o"u., not as li.itin* enue to t+e s,eci%ied ,laceIn t+e Const"uction '*"ee.ent, ,etitione" a*"eed to %ile any action in PueHon City Ge8,"essly !ai in* any ot+e" enue-K &+is connotes e8clusi ity o% t+e desi*nated enue- &+e te".s clea"ly sti,ulate e8clusi ely t+e enue
)E(DE@, IV'( VIA&OR /4D, 150

C'C&S2 Petitione" Jesus Dacoycoy, %iled be%o"e t+e R&C, 'nti,olo, RiHal, a co.,laint a*ainst ,"i ate "es,ondent Ru%ino de EuH.an %o" t+e annul.ent o% t!o deeds o% sale in ol in* a ,a"cel o% "iceland situated in Ba""io EstanHa, Lin*ayen, Pan*asinan, t+e su""ende" o% t+e ,"oduce t+e"eo%, and da.a*es due to ,"i ate "es,ondentMs "e%usal to +a e said deeds o% sale set aside u,on ,etitione"Ms de.andBe%o"e su..ons could be se" ed on ,"i ate "es,ondent as de%endant t+e"ein, t+e R&C issued an o"de" "e?ui"in* counsel %o" ,etitione" to con%e" !it+ "es,ondent t"ial 3ud*e on t+e .atte" o% enue'%te" said con%e"ence, t+e t"ial cou"t dis.issed t+e co.,laint on t+e *"ound o% i.,"o,e" enue- It %ound, based on t+e alle*ations o% t+e co.,laint, t+at ,etitione"Ms action is a "eal action as it sou*+t not only t+e annul.ent o% t+e deeds o% sale but also t+e "eco e"y o% o!ne"s+i, o% t+e sub3ect ,a"cel o% "iceland located in EstanHa, Lin*ayen, Pan*asinan, !+ic+ is outside t+e te""ito"ial 3u"isdiction o% t+e t"ial cou"tPetitione" a,,ealed to t+e Inte".ediate ',,ellate Cou"t, no! Cou"t o% ',,eals, !+ic+ in its decision o% ',"il 11, 1#F=, a%%i".ed t+e o"de" o% dis.issal o% +is co.,laintISSUE2 .hether or not the trial court can %re2em%t the defendantBs %rerogative to ob/ect to im%ro%er venue by motu %ro%io dismissing the case

CIVIL PROCEDURE REVIEWER4$

NO2 &+e motu %ro%rio dis.issal o% ,etitione"Ms co.,laint by "es,ondent t"ial cou"t on t+e *"ound o% i.,"o,e" enue is ,lain e""o", ob iously att"ibutable to its inability to distin*uis+ bet!een 3u"isdiction and enueVenue is ,"ocedu"al "at+e" t+an substanti e- It "elates to t+e 3u"isdiction o% t+e cou"t o e" t+e ,e"son "at+e" t+an t+e sub3ect .atte"- P"o isions "elatin* to enue establis+ a "elation bet!een t+e ,lainti%% and t+e de%endant and not bet!een t+e cou"t and t+e sub3ect .atte"- Venue "elates to t"ial not to 3u"isdiction, touc+es .o"e o% t+e con enience o% t+e ,a"ties "at+e" t+an t+e substance o% t+e case- Ju"isdiction t"eats o% t+e ,o!e" o% t+e cou"t to decide a case on t+e .e"its9 !+ile enue deals on t+e locality, t+e ,lace !+e"e t+e suit .ay be +adDis.issin* t+e co.,laint on t+e *"ound o% i.,"o,e" enue is ce"tainly not t+e a,,"o,"iate cou"se o% action at t+is sta*e o% t+e ,"oceedin*, ,a"ticula"ly as enue, in in%e"io" cou"ts as !ell as in t+e cou"ts o% %i"st instance /no! R&C0, .ay be !ai ed e8,"essly o" i.,liedly- W+e"e de%endant %ails to c+allen*e ti.ely t+e enue in a .otion to dis.iss as ,"o ided by Section : o% Rule : o% t+e Rules o% Cou"t, and allo!s t+e t"ial to be +eld and a decision to be "ende"ed, +e cannot on a,,eal o" in a s,ecial action be ,e".itted to c+allen*e belatedly t+e !"on* enue, !+ic+ is dee.ed !ai edIndeed, it !as *"ossly e""oneous %o" t+e t"ial cou"t to +a e ta6en a ,"ocedu"al s+o"t7cut by dis.issin* motu %ro%rio t+e co.,laint on t+e *"ound o% i.,"o,e" enue !it+out %i"st allo!in* t+e ,"ocedu"e outlined in t+e Rules o% Cou"t to ta6e its ,"o,e" cou"se=!w t! Cuesti!n im#r!#er venue /10 Motion to dismissBy %ilin* a .otion to dis.iss be%o"e a "es,onsi e ,leadin* /ans!e"0 on t+e *"ound o% i.,"o,e" enue /Sec- 1;c<, Rule 1=0 /40 Affirmative defense in answerBy i.,leadin* i.,"o,e" enue as an a%%i".ati e de%ense in t+e ans!e" /Sec- =, Rule 1=0

&+e intention o% t+e ,leade" is t+e cont"ollin* %acto" in const"uin* a ,leadin* and s+ould be "ead in acco"dance !it+ its substance, not its %o".Pa"ties a"e st"ictly by t+e alle*ations, state.ents o" ad.issions .ade in +is ,leadin*s and cannot be ,e".itted to ta6e a cont"adicto"y ,osition-

Distin$uis+ed fr!m m!ti!n ' motion is an a,,lication %o" "elie% ot+e" t+an by a ,leadin*- /Sec- 1, Rule 1>0 W+at a !wed &+e clai.s o% a ,a"ty a"e asse"ted in a /10 co.,laint, /40 counte"clai., /50 c"oss7clai., /:0 t+i"d /%ou"t+, etc-01,a"ty co.,laint, or />0 co.,laint7in7inte" ention&+e de%enses o% a ,a"ty a"e alle*ed in t+e ans!e" to t+e ,leadin* asse"tin* a clai. a*ainst +i.'n ans!e" .ay be "es,onded to by a "e,ly- /Sec-4, Rule =0 Pleadings allowed under $ummary Procedure &+e only ,leadin*s unde" t+e Rules on Su..a"y P"ocedu"e a"e2 /10 co.,laint9 /40 co.,ulso"y counte"clai.9 /50 c"oss7clai. ,leaded in t+e ans!e"9 and /:0 ans!e"sPleadings not allowed in a %etition for writ of am%aro or habeas data &+e %ollo!in* a"e ,"o+ibited .otions in t+e .entioned ,etitions2 /10 counte"clai.9 /40 c"oss7clai.9 /50 t+i"d7,a"ty co.,laint9 /:0 "e,ly9 and />0 ,leadin*s in inte" ention Parts !f a # eadin$ &'( Ca#ti!n1 &+e ca,tion sets %o"t+ /10 &+e na.e o% t+e cou"t9 /40 &+e title o% t+e action9 &+e title o% t+e action indicates t+e na.es o% t+e ,a"ties- &+ey s+all all be na.ed in t+e o"i*inal co.,laint o" ,etition9 but in subse3uent %leadings, it s+all be su%%icient i% t+e na.e o% t+e %i"st ,a"ty on eac+ side be stated !it+ an a,,"o,"iate indication when there are other %arties# &+ei" "es,ecti e ,a"tici,ation in t+e case s+all be indicated/50 &+e doc6et nu.be" i% assi*ned(O&E2 It is (O& t+e ca,tion, but t+e alle*ations !+ic+ dete".ine t+e natu"e o% t+e action-

PLEADIN%S &Substantia ReCuirements( In $enera P eadin$s defined Pleadings a"e t+e !"itten state.ents o% t+e "es,ecti e clai.s and de%enses o% t+e ,a"ties sub.itted to t+e cou"t %o" a,,"o,"iate 3ud*.ent- /Sec- 1, Rule =0 Pleadin*s a"e not su,,osed to alle*e conclusionsIt .ust only a e" ulti.ate %acts, o" t+e %acts essential to a ,a"tys cause o% action o" de%ense E identia"y .atte"s a"e to be ,"esented du"in* t+e t"ial o% t+e case, not in t+e ,leadin*s- &+ese and conclusions .ay be sub3ect o% a .otion to st"i6e 'll ,leadin*s s+all be libe"ally const"ued-

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER4F

/50 t+at it is not inte",osed %o" delay&5( 1+e B!d.1 &+e body o% t+e ,leadin* sets %o"t+ /10 its desi*nation, /40 t+e alle*ations o% t+e ,a"tys clai.s o" de%enses, /50 t+e "elie% ,"ayed %o", and /:0 t+e date o% t+e ,leadin*/a0 Paragra%hs-1&+e alle*ations in t+e body o% a ,leadin* s+all be idi ided into ,a"a*"a,+s so nu.be"ed as to be "eadily identi%ied, iieac+ o% !+ic+ s+all contain a state.ent o% a sin*le set o% ci"cu.stances so %a" as t+at can be done !it+ con enience' ,a"a*"a,+ .ay be "e%e""ed to by its nu.be" in all succeedin* ,leadin*s/b0 FeadingsCo" 3oined actions2 &+e state.ent o% t+e %i"st s+all be ,"e%aced by t+e !o"ds G%i"st cause o% action,K o% t+e second by Gsecond cause o% action,K and so on %o" t+e ot+e"sPa"a*"a,+s in t+e ans!e" add"essed to one o% se e"al causes o% action in t+e co.,laint s+all be ,"e%aced by t+e !o"ds Gans!e" to t+e %i"st cause o% actionK o" Gans!e" to t+e second cause o% actionK and so on9 Pa"a*"a,+s o% t+e ans!e" add"essed to se e"al causes o% action, t+ey s+all be ,"e%aced by !o"ds to t+at e%%ect/c0 !elief#-4he ,leadin* shall s%ecify the relief sou*+t, BU& it .ay add a *ene"al ,"aye" %o" suc+ %u"t+e" o" ot+e" "elie% as .ay be dee.ed 3ust o" e?uitable &+e "elie% o" ,"aye" does not constitute a ,a"t o% t+e state.ent o% t+e cause o% action &+e cou"t .ay *"ant a "elie% not ,"ayed %o" as lon* as t+e "elie% is warranted by the allegations o% t+e co.,laint and t+e ,"oo%/d0 Date#-E e"y ,leadin* s+all be dated- /Sec- 4, Rule $0 &7( Si$nature and address+very %leading .ust be /10 si*ned by t+e ,a"ty o" counsel "e,"esentin* +i., and /40 state in eit+e" case +is add"ess !+ic+ s+ould not be a ,ost o%%ice bo8&+e si*natu"e o% counsel constitutes a ce"ti%ication /10 t+at +e +as "ead t+e ,leadin*9 /40 t+at to t+e best o% +is 6no!led*e, in%o".ation, and belie% t+e"e is *ood *"ound to su,,o"t it9 and
)E(DE@, IV'( VIA&OR /4D, 150

'n unsi*ned ,leadin* ,"oduces (O le*al e%%ect Bo!e e", t+e cou"t .ay, in its disc"etion, allo! suc+ de%iciency to be "e.edied i% it s+all a,,ea" t+at t+e sa.e !as due to .e"e inad e"tence and not intended %o" delayCounsel i%2 /10 /40 /50 /:0 s+all be sub3ect to a,,"o,"iate disci,lina"y action +e delibe"ately %iles an unsi*ned ,leadin*, si*ns a ,leadin* in iolation o% t+is Rule, alle*es scandalous o" indecent .atte" t+e"ein, or %ails to ,"o.,tly "e,o"t to t+e cou"t a c+an*e o% +is add"ess- /Sec 5, Rule $0

(O&E2 Counsels aut+o"ity and duty to si*n a ,leadin* a"e ,e"sonal to +i.- Bence, +e )'T (O& dele*ate it to 3ust any ,e"son- ' blan6et aut+o"ity ent"usted to 3ust anyone is oid since it !ill a.ount to si*nin* by un?uali%ied ,e"sons&A( Verificati!n)eneral !ule* Pleadin*s (EED (O& be unde" oat+, e"i%ied o" acco.,anied by a%%ida it+,ce%tion* !+en ot+e"!ise s,eci%ically "e?ui"ed by la! o" "ule- &+e %ollo! ,leadin*s .ust be e"i%ied2 Petition to ta6e de,osition be%o"e action9 Petition %o" "elie% %"o. 3ud*.ent9 ',,eal by Certiorari %"o. C' to SC9 ',,lication %o" P"eli.ina"y In3unction or &e.,o"a"y Rest"ainin* O"de"9 ',,lication %o" ',,oint.ent o% a Recei e"9 Petition %o" Certiorari, P"o+ibition, o" Mandamus9 'll ,leadin*s o% %o"cible ent"y and unla!%ul detaine"9 Petition %o" a,,oint.ent o% *ene"al *ua"dian9 Petition o% *ua"dian %o" lea e to sell o" encu.be" ,"o,e"ty o% estate9 Petition to decla"e co.,etency o% !a"d9 ',,lication %o" W"it o% habeas cor%us9 Petition %o" c+an*e o% na.e9 Petition %o" olunta"y dissolution o% co",o"ation9 Petition to co""ect ent"ies in ci il "e*ist"y9 Pleadin*s in Su..a"y P"ocedu"e&+e %ollo!in* need not be e"i%ied but .ust be unde" oat+2 Denial o% *enuineness and dues e8ecution o% actionable docu.ent9 Denial o% alle*ations o% usu"y9 )otion to set aside o"de" o% de%ault9 'ns!e" to !"itten inte""o*ato"ies9 'ns!e" to "e?uest %o" ad.ission'%%ida it o% .e"it o" su,,o"tin* a%%ida it is "e?ui"ed in t+e %ollo!in*2 )otion %o" su..a"y 3ud*.ent o" o,,osition t+e"eto9 )otion %o" ne! t"ial9

CIVIL PROCEDURE REVIEWER4#

'%%ida it o% t+i"d7,a"ty clai. on le ied ,"o,e"ty9 P"oo% "e?ui"ed o% "ede.,tione"9 Co.,laint !it+ ,"aye" %o" ,"eli.ina"y attac+.ent9 '%%ida it o% t+i"d7,a"ty clai. on attac+ed ,"o,e"ty9 )otion to dissol e ,"eli.ina"y in3unction on *"ound o% i""e,a"able da.a*e to .o ant !+ile ad e"se ,a"ty can be %ully co.,ensated Co.,laint %o" "e,le in2 Clai. a*ainst estate o% decedent-

days t+e"e%"o. to t+e cou"t !+e"ein +is a%o"esaid co.,laint o" initiato"y ,leadin* +as been %iled(O&E2 &+e ce"ti%ication .ust be e8ecuted by t+e ,a"ty (O& t+e counsel, unless t+e latte" is aut+o"iHed s,eci%ically to do so- ' ce"ti%ication si*ned by t+e counsel is a de%ecti e ce"ti%ication and is a alid cause %o" dis.issalBU& &+is "ule .ust be libe"ally inte","eted2 Cailu"e o% ,a"ties to si*n because t+ey !e"e ab"oad .ay be a "easonable cause to e8e.,t t+e ,a"ties %"o. co.,liance !it+ t+e "e?ui"e.ent Si*nin* by one o% t+e ,etitione"s !as +eld to be substantial co.,liance .hen %laintiff is a /uridical %erson 1t+is .ay be si*ned by t+e ,"o,e"ly aut+o"iHed ,e"sons&+is "e?ui"e.ent is .andato"y in t+e %ilin* o% a co.,laint and ot+e" initiato"y ,leadin*, but it is (O& 3u"isdictional&+e "ule a,,lies also to s,ecial ci il actions1nitiatory %leadings include /10 O"i*inal co.,laint9 /40 Pe".issi e counte"clai.9 /50 C"oss7clai.9 /:0 &+i"d /%ou"t+, etc-07,a"ty co.,laint9 />0 Co.,laint in inte" ention9 and /=0 Petition o" a,,lication !+e"ein t+e ,a"ty asse"ts +is clai. o" "elie%(O&E2 (o ce"ti%ication "e?ui"ed %o" a co.,ulso"y counte"clai. since it is (O& an initiato"y ,leadin*+ffect of failure to com%ly /10 It shall (O& be cu"able by .e"e a.end.ent o% t+e co.,laint o" ot+e" initiato"y ,leadin*/40 BU& it s+all be cause %o" t+e dis.issal o% t+e case without ,"e3udice, unless ot+e"!ise ,"o ided, u,on .otion and a%te" +ea"in*E%%ect o% t+e sub.ission o% a %alse ce"ti%ication or non7 co.,liance !it+ any o% t+e unde"ta6in*s t+e"ein2 /10 Indi"ect conte.,t9 /40 'd.inist"ati e and c"i.inal actionsE%%ect o% !ill%ul and delibe"ate %o"u. s+o,,in* by t+e ,a"ty o" +is counsel2 /10 *"ound %o" su..a"y dis.issal !it+ ,"e3udice /40 di"ect conte.,t, and /50 a cause %o" ad.inist"ati e sanctions- /Sec- >, Rule $0 Fow to determine e,istence of forum sho%%ing &+e .ost i.,o"tant ?uestion is !+et+e" t+e ele.ents o% litis %endentia a"e ,"esent OR !+et+e" a %inal 3ud*.ent in one case !ill "esult to res /udicata&+e &ES& is !+et+e" in t+e t!o o" .o"e cases ,endin*, t+e"e is2 /a0 identity o% ,a"ties9 /b0 identity o% "i*+ts o" causes o% action, and /c0 identity o% "elie%s sou*+t-

Fow %leading is verified ' ,leadin* is e"i%ied by an a%%ida it /10 t+at t+e a%%iant +as "ead t+e ,leadin* and /40 t+at t+e alle*ations t+e"ein a"e t"ue and co""ect o% +is ,e"sonal 6no!led*e o" based on aut+entic "eco"ds(O&E2 ' ,leadin* "e?ui"ed to be e"i%ied s+all be t"eated as an unsi*ned ,leadin* i% it contains a e"i%ication /10 based on Gin%o".ation and belie%,K /40 u,on G6no!led*e, in%o".ation and belie%,K or /50 lac6s a ,"o,e" e"i%ication !emedies &+e cou"t .ay o"de" t+e co""ection o% t+e ,leadin* i% lac6in* e"i%ication &+e cou"t .ay also acct on t+e ,leadin* des,ite %ailu"e to ,"o,e"ly e"i%y i% unde" t+e ci"cu.stances, st"ict co.,liance !it+ t+e "ules .ay be dis,ensed !it+ &+e absence o% e"i%ication .ay be co""ected by "e?ui"in* an oat+&9( Certificati!n a$ainst f!rum s+!##in$D Forum sho%%ing is t+e %ilin* o% .ulti,le suits in di%%e"ent cou"ts, eit+e" si.ultaneously o" successi ely, in ol in* t+e sa.e ,a"ties, to as6 t+e cou"ts to "ule on t+e sa.e o" "elated causes andIo" to *"ant t+e sa.e o" substantially t+e sa.e "elie% It is an act o% .al,"actice &+e sa.e s+all constitute di"ect conte.,t, a cause %o" ad.inist"ati e sanctions, as !ell as a *"ound %o" t+e su..a"y dis.issal o% t+e case !it+ ,"e3udice&+e certification against forum sho%%ing is a s!o"n state.ent by t+e ,lainti%% o" ,"inci,al ,a"ty ce"ti%yin* in an initiato"y ,leadin*2 /a0 t+at +e +as not co..enced any action o" %iled any clai. in ol in* t+e sa.e issues in any cou"t, t"ibunal o" ?uasi73udicial a*ency and, to t+e best o% +is 6no!led*e, no suc+ ot+e" action o" clai. is ,endin* t+e"ein9 /b0 i% t+e"e is suc+ ot+e" ,endin* action o" clai., a co.,lete state.ent o% t+e ,"esent status t+e"eo%9 and /c0 i% +e s+ould t+e"ea%te" lea"n t+at t+e sa.e o" si.ila" action o" clai. +as been %iled o" is ,endin*, +e s+all "e,o"t t+at %act !it+in %i e />0
)E(DE@, IV'( VIA&OR /4D, 150

=OW ALLE%A1IONS -ADE

CIVIL PROCEDURE REVIEWER5D

In $enera E e"y ,leadin* s+all contain in a .et+odical and lo*ical %o"., a ,lain, concise and di"ect state.ent o% t+e ulti.ate %acts on !+ic+ t+e ,a"ty ,leadin* "elies %o" +is clai. o" de%ense, as t+e case .ay be, o.ittin* t+e state.ent o% .e"e e identia"y %actsI% a defense "elie% on is based on la!, t+e ,e"tinent ,"o isions t+e"eo% and t+ei" a,,licability to +i. s+all be clea"ly and concisely stated- /Sec- 1, Rule F0 Altimate facts a"e t+ose !+ic+ di"ectly %o". t+e basis o% t+e "i*+t sou*+t to be en%o"ced, o" t+e de%ense "elied u,on&+ey a"e t+e e"y %acts !it+out !+ic+, %o" e8a.,le, t+e cause o% action stated in a co.,laint !ould be insu%%icient 4est of sufficiencyI% %"o. t+e %acts alle*ed, a alid 3ud*.ent .ay be "ende"ed %o" t+e ,lainti%%, t+e co.,laint is %rima facie su%%icient0o need to allege the following in the %leadings2 /10 e identia"y o" ,"obati e %acts /40 t+ose ,"esu.ed by la! /50 %acts o% 3udicial notice /:0 in%e"ences, a"*u.ents and conclusions o% la! de"i ed o" in%e""ed %"o. t+e stated ulti.ate %acts Ca#acit. &+e %ollo!in* .ust be a e""ed2 /10 Cacts s+o!in* t+e ca,acity o% a ,a"ty to sue o" be sued2 /40 &+e aut+o"ity o% a ,a"ty to sue o" be sued in a "e,"esentati e ca,acity9 or /50 &+e le*al e8istence o% an o"*aniHed association o% ,e"sons t+at is .ade a ,a"tyContesting the ca%acity of a %arty ' ,a"ty desi"in* to "aise an issue as to t+e le*al e8istence o% any ,a"ty o" t+e ca,acity o% any ,a"ty to sue o" be sued in a "e,"esentati e ca,acity, s+all do so by s,eci%ic denial, !+ic+ s+all include suc+ su,,o"tin* ,a"ticula"s as a"e ,eculia"ly !it+in t+e ,leade"s 6no!led*e- /Sec- :, Rule F0 $%ecific denial Bo! to .a6e a s,eci%ic denial2 /10 Absolute denial-s,eci%y eac+ .ate"ial alle*ation o% %act t+e t"ut+ o% !+ic+ +e does not ad.it and, !+ene e" ,"acticable, set %o"t+ t+e substance o% t+e .atte"s u,on !+ic+ +e "elies to su,,o"t +is denial/40 Partial denial-!+e"e only a ,a"t o% an a e".ent is denied, +e s,eci%y so .uc+ o% it as is t"ue and .ate"ial and deny only t+e "e.ainde"/50 Denial by disavowal of 6nowledge- !+e"e de%endant is !it+out 6no!led*e o" in%o".ation su%%icient to %o". a belie% as to t+e t"ut+ o% a .ate"ial a e".ent in t+e co.,laint, +e s+all so state, and t+is s+all +a e t+e e%%ect o% a denial/Sec- 1D, Rule F0
)E(DE@, IV'( VIA&OR /4D, 150

(O&E2 'lle*ations not s,eci%ically denied a"e dee.ed ad.itted- +,ce%tion2 a.ount o% unli?uidated da.a*es, !+ic+ .ust al!ays be ,"o ed9 alle*ations o% usu"y in a co.,laint to "eco e" usu"ious inte"est a"e ad.itted if not denied under oath- /Sec- 11, Rule F0 A ternative c aims and defenses ' ,a"ty .ay set %o"t+ t!o o" .o"e state.ents o% a clai. o" de%ense alte"nati ely o" +y,ot+etically, eit+e" in one cause o% action o" de%ense or in se,a"ate causes o% action o" de%ensesW+en t!o o" .o"e state.ents a"e .ade in t+e alte"nati e and one o% t+e. i% made inde%endently !ould be su%%icient, t+e ,leadin* is (O& .ade insu%%icient by t+e insu%%iciency o% one o" .o"e o% t+e alte"nati e state.ents- /Sec- 4, Rule F0 +,am%les Alternative cause of action* B"eac+ o% cont"act o% ca""ia*e o" to"t Alternative defense* Pay.ent9 e en i% not ,aid, action +as ,"esc"ibed C!nditi!ns #recedent In any ,leadin* a *ene"al a e".ent o% t+e ,e"%o".ance o" occu""ence o% all conditions ,"ecedent s+all be su%%icient/Sec- 5, Rule F0 +,am%le2 E8+austion o% ad.inist"ati e "e.edies,raud and mista*e" c!nditi!n !f mind In all a e".ents, t+e ci"cu.stances constitutin* t+e %ollo!in* .ust be stated !it+ ,a"ticula"ity2 /10 %"aud or /40 .ista6e (O&E2 I% t+e abo e "ule is not co.,lied !it+, t+e co.,laint .ay be dis.issed, or t+e ans!e" .ay be st"ic6en o%% t+e "eco"ds and +e !ill be decla"ed in de%ault&+e %ollo!in* .ay be a e""ed *ene"ally2 /10 .alice, /40 intent, /50 6no!led*e or /:0 ot+e" condition o% t+e .ind o% a ,e"son/Sec- >, Rule F0 0ud$ments In ,leadin* a 3ud*.ent o" decision o% a do.estic o" %o"ei*n cou"t, 3udicial o" ?uasi73udicial t"ibunal, o" o% a boa"d o" o%%ice", it is sufficient to a e" t+e 3ud*.ent o" decision without settin* %o"t+ .atte" showing /urisdiction to "ende" it/Sec- =, Rule F0 Officia d!cuments

CIVIL PROCEDURE REVIEWER51

In ,leadin* an official document o" official act, it is su%%icient to a e"2 t+at t+e docu.ent !as issued o" t+e act done in co.,liance !it+ la!- /Sec- #, Rule F0 Need t! brin$ in new #arties W+en t+e ,"esence o% ,a"ties ot+e" t+an t+ose to t+e o"i*inal action is "e?ui"ed %o" t+e *"antin* o% co.,lete "elie% in t+e dete".ination o% a counterclaim o" cross2 claim, t+e cou"t s+all ORDER t+e. to be b"ou*+t in as de%endants, if 3u"isdiction o e" t+e. can be obtained- /Sec14, Rule =0

CO-PLAIN1 Defined and in $enera &+e com%laint is t+e ,leadin* alle*in* t+e ,lainti%%s cause o" causes o% action- &+e na.es and "esidences o% t+e ,lainti%% and de%endant .ust be stated in t+e co.,laint/Sec- 5, Rule =0 It is t+e %i"st ,leadin* a ,a"ty %iled in cou"t It .ust be in !"itin*A e$ati!ns In $enera E e"y ,leadin* s+all contain in a .et+odical and lo*ical %o"., a ,lain, concise and di"ect state.ent o% t+e ulti.ate %acts on !+ic+ t+e ,a"ty ,leadin* "elies %o" +is clai. o" de%ense, as t+e case .ay be, o.ittin* t+e state.ent o% .e"e e identia"y %actsI% a defense "elie% on is based on la!, t+e ,e"tinent ,"o isions t+e"eo% and t+ei" a,,licability to +i. s+all be clea"ly and concisely stated-

in t+e $Ds but 'nastacias estate !as not ,a"titioned /!+ic+ includes +e" s+a"es in @enit+0@enit+ and Rod"i*o %iled a co.,laint desi*nated as a de"i ati e suit !it+ t+e SEC a*ainst Osca" to obtain an accountin* o% t+e %unds and assets o% @enit+ !+ic+ a"e no! o" %o".e"ly in t+e cont"ol, custody, andIo" ,ossession o% ,etitione" Osca" and to dete".ine t+e s+a"es o% stoc6 o% deceased Reyes s,ouses t+at !e"e Ga"bit"a"ily and %"audulentlyK a,,"o,"iated by Osca" %o" +i.sel% and !+ic+ !e"e not collated and ta6en into account in t+e ,a"tition, dist"ibution, andIo" settle.ent o% t+e estate o% t+e deceased s,ouses- &+e co.,laint ,"ayed t+at Osca" be o"de"ed to account %o" all t+e inco.e %"o. t+e ti.e +e too6 t+ese s+a"es, and deli e" to +is b"ot+e"s and siste"s t+ei" 3ust and "es,ecti e s+a"esIn +is 'ns!e" !it+ Counte"clai., Osca" denied t+e c+a"*e t+at +e ille*ally ac?ui"ed t+e s+a"es o% 'nastacia, asse"tin* t+at +e ,u"c+ased t+e s+a"es !it+ +is o!n %unds %"o. @enit+s unissued stoc6s, and t+at t+e suit is not a bona fide de"i ati e suit because t+e "e?uisites +a e not been co.,lied !it+- Be ?uestioned t+e SECMs 3u"isdiction to ente"tain t+e co.,laint because it ,e"tains to t+e settle.ent o% t+e estate o% 'nastacia Reyes&+e R&C !as late" con%e""ed !it+ 3u"isdiction o e" t+e .atte" due to a ,"esidential decla"ation con%i".in* t+e %o".e" as a s,ecial co..e"cial cou"t- Osca" %iled a )otion to Decla"e Co.,laint as (uisance o" Ba"ass.ent Suit- &+e R&C denied t+e .otion and t+e C' a%%i".edBence t+is ,etition ISSUE2 .hether the allegations against Cscar were sufficient to hold him guilty of fraud NO2 &+e "ule is t+at a co.,laint .ust contain a ,lain, concise, and di"ect state.ent o% t+e ulti.ate %acts constitutin* t+e ,lainti%%Ms cause o% action and .ust s,eci%y t+e "elie% sou*+t- Section >, Rule F o% t+e Re ised Rules o% Cou"t ,"o ides t+at in all a e".ents o% %"aud o" .ista6e, t+e ci"cu.stances constitutin* %"aud o" .ista6e .ust be stated !it+ ,a"ticula"ity- &+ese "ules %ind s,eci%ic a,,lication to Section >/a0 o% P-D- (o- #D47' !+ic+ s,ea6s o% co",o"ate de ices o" sc+e.es t+at a.ount to %"aud o" .is"e,"esentation det"i.ental to t+e ,ublic andIo" to t+e stoc6+olde"s'lle*ations o% deceit, .ac+ination, %alse ,"etenses, .is"e,"esentation, and t+"eats a"e la"*ely conclusions o% la! t+at, !it+out su,,o"tin* state.ents o% t+e %acts to !+ic+ t+e alle*ations o% %"aud "e%e", do not su%%iciently state an e%%ecti e cause o% action- C"aud and .ista6e a"e "e?ui"ed to be a e""ed !it+ ,a"ticula"ity to enable t+e o,,osin* ,a"ty to cont"o e"t t+e ,a"ticula" %acts alle*edly constitutin* suc+ %"aud o" .ista6e&+e c+a"*es o% %"aud a*ainst Osca" !e"e not ,"o,e"ly su,,o"ted by t+e "e?ui"ed %actual alle*ationsW+ile t+e co.,laint contained alle*ations o% %"aud ,u",o"tedly co..itted by +i., t+ese alle*ations a"e not ,a"ticula" enou*+ to b"in* t+e cont"o e"sy !it+in t+e s,ecial co..e"cial cou"tMs 3u"isdiction9 t+ey a"e not state.ents o% ulti.ate %acts, but a"e .e"e conclusions o% la!2 +o! and !+y t+e alle*ed a,,"o,"iation o% s+a"es can be c+a"acte"iHed as Qille*al and %"audulentQ !e"e not e8,lained no" elabo"ated on-

RE.ES v. RTC MA2ATI (!00)" 'lle*ations o% deceit, .ac+ination, %alse ,"etenses, .is"e,"esentation, and t+"eats a"e la"*ely conclusions o% la! t+at, !it+out su,,o"tin* state.ents o% t+e %acts to !+ic+ t+e alle*ations o% %"aud "e%e", do not su%%iciently state an e%%ecti e cause o% action-

C'C&S2 Ped"o and 'nastacia Reyes, alon* !it+ t+ei" t!o c+ild"en Osca", Rod"i*o, o!ned s+a"es o% stoc6 in @enit+ Insu"ance Co",o"ation /@enit+0- W+en Ped"o and 'nastacia died, Rod"i*o o!ned :,4>D s+a"es !+ile Osca" o!ned F,$1>,=5$ s+a"es- Ped"os estate !as ,"o,e"ly ,a"titioned

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER54

Ca#acit. !f #arties &+e %ollo!in* .ust be a e""ed2 /10 Cacts s+o!in* t+e ca,acity o% a ,a"ty to sue o" be sued2 /40 &+e aut+o"ity o% a ,a"ty to sue o" be sued in a "e,"esentati e ca,acity9 or /50 &+e le*al e8istence o% an o"*aniHed association o% ,e"sons t+at is .ade a ,a"tyContesting the ca%acity of a %arty ' ,a"ty desi"in* to "aise an issue as to t+e le*al e8istence o% any ,a"ty o" t+e ca,acity o% any ,a"ty to sue o" be sued in a "e,"esentati e ca,acity, s+all do so by s,eci%ic denial, !+ic+ s+all include suc+ su,,o"tin* ,a"ticula"s as a"e ,eculia"ly !it+in t+e ,leade"s 6no!led*e- /Sec- :, Rule F0 Acti!ns based u#!n a d!cument W+ene e" an action o" de%ense is based u,on a written instrument or document, t+e ,a"ty s+all2 /10 set %o"t+ in t+e ,leadin* t+e substance o% suc+ inst"u.ent o" docu.ent , and /40 attac+ t+e o"i*inal o" a co,y t+e"eo% an e8+ibit, !+ic+ s+all be dee.ed to be a ,a"t o% t+e ,leadin*, or /50 set %o"t+ said co,y be in t+e ,leadin* !it+ li6e e%%ect- /Sec- $, Rule F0 Actionable document is one !+ic+ is t+e basis o% t+e clai. o" de%ense- +,am%les2 ,"o.isso"y note deed o% sale cont"act (O&E2 Lette"s by ,a"ties "e*a"din* t+e actionable docu.ent a"e not actionable docu.ents, but .e"e e idence o% t+e e8istence o% t+e actionable docu.ent-

/40 /50 /:0 />0 /=0 /$0 /F0 /#0 /1D0 /110

Want o% conside"ation9 Ille*ality o% conside"ation9 Usu"y9 C"aud9 P"esc"i,tion, Release9 Wai e"9 Statute o% %"auds9 Esto,,el9 Co".e" "eco e"y o" disc+a"*e in ban6"u,tcy, etc-

.hen an oath is not re3uired ' s,eci%ic denial unde" oat+ !ill not a,,ly in t+e %ollo!in* cases2 /10 W+en t+e ad e"se ,a"ty does not a,,ea" to be a ,a"ty to t+e docu.ent, or /40 W+en co.,liance !it+ an o"de" %o" an ins,ection o% t+e o"i*inal inst"u.ent is "e%used- /Sec- F, Rule F0 ANSWER Defined and in $enera 'n ans!e" is a ,leadin* in !+ic+ a de%endin* ,a"ty sets %o"t+ +is de%enses- /Sec- :, Rule =0 &+is ,leadin* .ay be an ans!e" to t+e co.,laint, to a counte"clai., or an ans!e" to a c"oss7clai. &+e"e is (O ans!e" to a "e,ly &+e"e .ay be an ans!e" to a t+i"d7,a"ty co.,laint o" co.,laint7in7inte" ention-

1.#es !f defenses Ne$ative ' negative defense is t+e s,eci%ic denial o% t+e .ate"ial %act o" %acts alle*ed in t+e ,leadin* o% t+e clai.ant essential to +is cause o" causes o% action- /Sec- >;a<, Rule =0 ' de%ense is negative !+en t+e .ate"ial a e".ents alle*ed in t+e ,leadin* o% t+e clai.ant a"e s%ecifically denied- /Sec- >, Rule 50 =!w a e$ed" $enera . It is alle*ed in t+e %o". o% a s,eci%ic denial I% t+e denial is not unde" Sec- 1D, Rule F, it is dee.ed a *ene"al denial ' *ene"al denial is an ad.ission$%ecific denial Bo! to .a6e a s,eci%ic denial2 /10 Absolute denial-s,eci%y eac+ .ate"ial alle*ation o% %act t+e t"ut+ o% !+ic+ +e does not ad.it and, !+ene e" ,"acticable, set %o"t+ t+e substance o% t+e .atte"s u,on !+ic+ +e "elies to su,,o"t +is denial/40 Partial denial-!+e"e only a ,a"t o% an a e".ent is denied, +e s,eci%y so .uc+ o% it

4o contest an actionable document &+e ,a"ty .ust /10 s,eci%ically deny t+e *enuineness and due e8ecution o% t+e docu.ent under oath9 and /40 set %o"t+ !+at +e clai.s to be t+e %acts(O&E2 ' .e"e s,eci%ic denial is insu%%icient- &+e denial must be cou,led !it+ an oat+9 t+e denial .ust be e"i%ied 'bsence o% an oat+ !ill be dee.ed an i.,lied ad.ission o% t+e due e8ecution and *enuineness o% t+e docu.ent W+en a ,a"ty is dee.ed to +a e ad.itted *enuineness and due e8ecution o% an actionable docu.ent, de%enses i.,lied %"o. said ad.ission a"e !ai ed /%o"*e"y, lac6 o% aut+o"ity to e8ecute t+e docu.ent, no ca,acity to si*n, non7deli e"y o% t+e docu.ent, de%ense t+at t+e docu.ent !as not in !o"ds and %i*u"es as set out in t+e ,leadin*s0 &+e %ollo!in* a"e (O& cut7o%% by t+e i.,lied ad.ission since t+ey a"e un"elated to t+e *enuineness and due e8ecution o% t+e docu.ent2 /10 Pay.ent9
)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER55

as is t"ue and .ate"ial and deny only t+e "e.ainde"/50 Denial by disavowal of 6nowledge- !+e"e de%endant is !it+out 6no!led*e o" in%o".a7 tion su%%icient to %o". a belie% as to t+e t"ut+ o% a .ate"ial a e".ent in t+e co.,laint, +e s+all so state, and t+is s+all +a e t+e e%%ect o% a denial- /Sec- 1D, Rule F0 Ca#acit. !f #arties &+e %ollo!in* .ust be a e""ed2 /10 Cacts s+o!in* t+e ca,acity o% a ,a"ty to sue o" be sued2 /40 &+e aut+o"ity o% a ,a"ty to sue o" be sued in a "e,"esentati e ca,acity9 or /50 &+e le*al e8istence o% an o"*aniHed association o% ,e"sons t+at is .ade a ,a"tyContesting the ca%acity of a %arty ' ,a"ty desi"in* to "aise an issue as to t+e le*al e8istence o% any ,a"ty o" t+e ca,acity o% any ,a"ty to sue o" be sued in a "e,"esentati e ca,acity, s+all do so by s,eci%ic denial, !+ic+ s+all include suc+ su,,o"tin* ,a"ticula"s as a"e ,eculia"ly !it+in t+e ,leade"s 6no!led*e- /Sec:, Rule F0 %enuineness !f d!cuments W+ene e" an action o" de%ense is based u,on a written instrument or document, t+e ,a"ty s+all2 /10 set %o"t+ in t+e ,leadin* t+e substance o% suc+ inst"u.ent o" docu.ent , and /40 attac+ t+e o"i*inal o" a co,y t+e"eo% an e8+ibit, !+ic+ s+all be dee.ed to be a ,a"t o% t+e ,leadin*, or /50 set %o"t+ said co,y be in t+e ,leadin* !it+ li6e e%%ect- /Sec- $, Rule F0 Actionable document is one !+ic+ is t+e basis o% t+e clai. o" de%ense- +,am%les2 ,"o.isso"y note deed o% sale cont"act (O&E2 Lette"s by ,a"ties "e*a"din* t+e actionable docu.ent a"e not actionable docu.ents, but .e"e e idence o% t+e e8istence o% t+e actionable docu.ent4o contest an actionable document &+e ,a"ty .ust /10 s,eci%ically deny t+e *enuineness and due e8ecution o% t+e docu.ent under oath9 and /40 set %o"t+ !+at +e clai.s to be t+e %acts(O&E2 ' .e"e s,eci%ic denial is insu%%icient&+e denial must be cou,led !it+ an oat+9 t+e denial .ust be e"i%ied-

'bsence o% an oat+ !ill be dee.ed an i.,lied ad.ission o% t+e due e8ecution and *enuineness o% t+e docu.entW+en a ,a"ty is dee.ed to +a e ad.itted *enuineness and due e8ecution o% an actionable docu.ent, de%enses i.,lied %"o. said ad.ission a"e !ai ed /%o"*e"y, lac6 o% aut+o"ity to e8ecute t+e docu.ent, no ca,acity to si*n, non7deli e"y o% t+e docu.ent, de%ense t+at t+e docu.ent !as not in !o"ds and %i*u"es as set out in t+e ,leadin*s0 &+e %ollo!in* a"e (O& cut7o%% by t+e i.,lied ad.ission since t+ey a"e un"elated to t+e *enuineness and due e8ecution o% t+e docu.ent2 /10 Pay.ent9 /40 Want o% conside"ation9 /50 Ille*ality o% conside"ation9 /:0 Usu"y9 />0 C"aud9 /=0 P"esc"i,tion, /$0 Release9 /F0 Wai e"9 /#0 Statute o% %"auds9 /1D0 Esto,,el9 /110 Co".e" "eco e"y o" disc+a"*e in ban6"u,tcy, etc-

.hen an oath is not re3uired ' s,eci%ic denial unde" oat+ !ill not a,,ly in t+e %ollo!in* cases2 /50 W+en t+e ad e"se ,a"ty does not a,,ea" to be a ,a"ty to t+e docu.ent, or /:0 W+en co.,liance !it+ an o"de" %o" an ins,ection o% t+e o"i*inal inst"u.ent is "e%used- /Sec- F, Rule F0 MEMITA v. MASONGSONG (!00'" &+e *enuineness and due e8ecution o% t+e inst"u.ent s+all be dee.ed ad.itted unless t+e ad e"se ,a"ty, unde" oat+, s,eci%ically denies t+e., and sets %o"t+ !+at +e clai.s to be t+e %acts- ' de%endant .ust s,eci%y eac+ .ate"ial alle*ation o% %act t+e t"ut+ o% !+ic+ +e does not ad.it and, !+ene e" ,"acticable, s+all set %o"t+ t+e substance o% t+e .atte"s u,on !+ic+ +e "elies to su,,o"t +is denial-

C'C&S2 )ason*son*, unde" t+e business na.e o% R) Inte*"ated Se" ices, !as t+e dist"ibuto" o% San )i*uel Coods, Inc-s )a*nolia c+ic6en ,"oducts- Be su,,lied said ,"oducts on a 4>7day ,ay.ent c"edit to )e.itas Vico" Sto"e)ason*son* %iled a co.,laint be%o"e t+e R&C, alle*in* t+at )e.itas P=D5,>4D->D c"edit on *oods ,u"c+ased "e.ain un,aid des,ite +is se e"al de.ands- Be

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER5:

also ,"ayed %o" t+e issuance o% a !"it o% attac+.ent a*ainst )e.ita&+e"ea%te", t+e R&C o"de"ed t+e issuance o% a !"it o% attac+.ent a*ainst )e.ita, ta6in* into account2 /10 t+e alle*ations o% t+e e"i%ied co.,laint9 /40 t+e testi.onies o% )ason*son* and Joel Eo, +is sales ,e"son9 and /50 )ason*son*s bond- 'cco"din* to t+e s+e"i%%s "etu"n o% se" ice, t+e P"o incial S+e"i%% issued a notice o% le y on attac+.ent to t+e Re*ist"a" o% t+e &O and a notice o% e.ba"*o to t+e Re*iste" o% Deeds o% Bacolod City)e.ita did not deny t+at +e ,u"c+ased *oods on c"edit %"o. )ason*son*, but based +is "e%usal to ,ay on t+e %ollo!in* *"ounds2 /10 ?uestionable deli e"ies9 /40 s+o"t deli e"ies and disc"e,ancies9 and /50 ,ossible .ani,ulation o% deli e"y "ecei,ts- Be .ade a counte"clai. and as6ed %o" P5DD,DDD in actual da.a*es %o" t+e seiHu"e o% t!o o% +is e+icles9 P>DD,DDD as .o"al da.a*es9 at least P4DD,DDD as e8e.,la"y da.a*es9 and P1>D,DDD as atto"neys %ees&+e R&C "uled t+at )ason*son* !as entitled to t+e "elie%s ,"ayed %o"- Bo!e e", )e.ita %iled a notice o% a,,eal !it+ t+e t"ial cou"t- In +is b"ie%, )e.ita a e""ed t+at t+e t"ial cou"t e""oneously ad.itted as e idence t+e .ac+ine co,ies o% t+e se enty7t!o /$40 sales in oices des,ite t+e ,atent lac6 o% ,"oo% o% due e8ecution and aut+enticity9 and in +oldin* t+at )e.ita ac6no!led*ed "ecei,t o% t+e deli e"ies .ade by )ason*son*&+e a,,ellate cou"t u,+eld t+e t"ial cou"ts decision- &+ey said )e.ita %ailed to e8,licitly deny o" contest t+e *enuineness and due e8ecution o% t+e "ecei,ts o" any si*natu"es on t+e "ecei,tsISSUES2 .hether Memita was able to contest the genuineness and due e,ecution of the ?> sales invoices NO- Wit+out s,eci%yin* t+e date o% ,u"c+ase o" t+e "ecei,t nu.be", )e.ita denied t+e ?uantities and alue o% +is ,u"c+ases- Be alle*ed t+at t+e"e !e"e ?uestionable deli e"ies and ?uestionable nu.be" o% 6ilos ,e" c"ate, and concluded t+at )ason*son* .i*+t +a e .ani,ulated t+e deli e"y "ecei,ts- Bo!e e", +e %ailed to ,oint out any ,a"ticula" Sales In oice !+ic+ substantiates +is clai. o% s+o"t deli e"ies o" ?uestionable deli e"ies- &+e a,,ellate cou"t "eite"ated t+e t"ial cou"ts ,osition and stated t+at )e.itas &+e 'ns!e" %ailed to e8,licitly deny o" contest t+e *enuineness and due e8ecution o% any o% t+e "ecei,ts no" any o% +is si*natu"es o" t+at o% +is aut+o"iHed "e,"esentati e a,,ea"in* t+e"einSection F o% Rule F ,"o ides t+at t+e *enuineness and due e8ecution o% t+e inst"u.ent s+all be dee.ed ad.itted unless t+e ad e"se ,a"ty, unde" oat+, s,eci%ically denies t+e., and sets %o"t+ !+at +e clai.s to be t+e %acts)e.ita, in alle*in* Q?uestionableQ and Qs+o"tQ deli e"ies, in e%%ect alle*es t+at )ason*son* co..itted %"aud- W+oe e" alle*es %"aud o" .ista6e a%%ectin* a t"ansaction .ust substantiate +is alle*ation, since it is ,"esu.ed t+at a ,e"son ta6es o"dina"y ca"e o% +is conce"ns and ,"i ate conce"ns +a e been %ai" and "e*ula"- )e.ita c+ose to ,"esent e idence !+ic+ did not Qset %o"t+ t+e %actsQ no" t+e Qsubstance o% t+e .atte"s u,on !+ic+ +e "elies to su,,o"t +is denial-K Ne$ative #re$nant
)E(DE@, IV'( VIA&OR /4D, 150

Denial in the form of a negative %regnantIt is a denial !+ic+ at t+e sa.e ti.e in ol es an a%%i".ati e i.,lication %a o"able to t+e o,,osin* ,a"ty, and is t+us an ad.ission o% an a e".ent to !+ic+ it is di"ected- It is a lite"al denial ,"e*nant !it+ ad.ission It does not ?uali%y as a s,eci%ic denialIt is conceded to be actually an ad.ission It is a ne*ati e i.,lyin* also an a%%i".ati e and !+ic+ alt+ou*+ stated in a ne*ati e %o". "eally ad.its t+e alle*ations to !+ic+ it "elates-

#HILI##INE AMERICAN GENERAL INSURANCE CO. INC. v. S$EET LINES (!(! SCRA (%4 (%%&" E en *"antin* t+at ,etitione"s a e".ent in t+ei" "e,ly a.ounts to a denial, it +as t+e ,"ocedu"al ea".a"6s a ne*ati e ,"e*nant, t+at is, a denial ,"e*nant !it+ t+e ad.ission o% t+e substantial %acts in t+e ,leadin*s "es,onded to !+ic+ a"e not s?ua"ely denied- W+ile t+e ,etitione"s ob3ected to t+e alidity o% suc+ a*"ee.ent %o" bein* cont"a"y to ,ublic ,olicy, t+e e8istence o% t+e bills o% ladin* and said sti,ulations !e"e i.,liedly ad.itted by t+e. C'C&S2 In )a"c+ 1#$$, t+e essel SS QVISBV' T'SBQ a %o"ei*n co..on ca""ie", too6 on boa"d at Baton Rou*e, L', t!o /40 consi*n.ents o% ca"*oes %o" s+i,.ent to )anila and late" %o" t"anss+i,.ent to Da ao City, consistin* o% ba*s o% Lo! Density Polyet+ylene bot+ consi*ned to t+e o"de" o% CEB&C )anila, !it+ a""i al notice to &PI in Da ao City- &+e said essel a""i ed at )anila and disc+a"*ed its ca"*oes in t+e Po"t o% )anilaCo" t"anss+i,.ent to Da ao, t+e ca""ie" a!aited and .ade use o% t+e se" ices o% )IV QS!eet Lo eQ o!ned and o,e"ated by SLI inte"island ca""ie"Sub3ect ca"*oes !e"e loaded and !e"e co..in*led !it+ si.ila" ca"*oes belon*in* o ot+e" t!o ot+e" co.,anies- &+e s+i,.ents !e"e disc+a"*ed %"o. t+e inte"island ca""ie" into t+e custody o% t+e consi*neeBo!e e", o% t+e $,DDD ba*s o"i*inally contained in 1$> ,allets, only a total o% >,F4D ba*s !e"e deli e"ed to t+e consi*nee in *ood o"de" condition, lea in* a balance o% 1,DFD ba*s- De%endants !e"e sued %o" suc+ lossesBe%o"e t"ial, a co.,"o.ise a*"ee.ent !as ente"ed into bet!een ,etitione"s, as ,lainti%%s, and de%endants S-C-I- Line and C-E- @uelli*- &+e t"ial cou"t *"anted ,etitione"s .otion to dis.iss on t+e *"ound o% said a.icable settle.ent and t+e case as to S-C-I- Line and C-E@uelli* !as conse?uently dis.issed- C' "e e"sed t+e R&C on su,,osed *"ound o% ,"esc"i,tion !+en SLI %ailed to adduce any e idence in su,,o"t t+e"eo% and t+at t+e bills o% ladin* said to contain t+e s+o"tened ,e"iods %o" %ilin* a clai. and %o" institutin* a cou"t action a*ainst t+e ca""ie" !e"e ne e" o%%e"ed in e idence-

CIVIL PROCEDURE REVIEWER5>

ISSUE2 .hether the non2inclusion of the controverted bills of lading in the formal offer of evidence would bar res%ondent from raising the defense of %rescri%tion NO2 In t+e case at ba", ,"esc"i,tion as an a%%i".ati e de%ense !as seasonably "aised by SLI in its ans!e", e8ce,t t+at t+e bills o% ladin* e.bodyin* t+e sa.e !e"e not %o".ally o%%e"ed in e idence's ,etitione"s a"e suin* u,on SLIMs cont"actual obli*ation unde" t+e cont"act o% ca""ia*e as contained in t+e bills o% ladin*, suc+ bills o% ladin* can be cate*o"iHed as actionable docu.ents !+ic+ unde" t+e Rules .ust be ,"o,e"ly ,leaded eit+e" as causes o% action o" de%enses, and t+e *enuineness and due e8ecution o% !+ic+ a"e dee.ed ad.itted unless s,eci%ically denied unde" oat+ by t+e ad e"se ,a"tyPetitione"s %ailed to cont"o e"t t+e e8istence o% t+e bills o% ladin*9 +ence, t+ey i.,liedly ad.itted t+e sa.e !+en t+ey .e"ely assailed t+e alidity o% sub3ect sti,ulations- Petitione"sM %ailu"e to s,eci%ically deny t+e e8istence, .uc+ less t+e *enuineness and due e8ecution, o% t+e inst"u.ents in ?uestion a.ounts to an ad.issionJudicial ad.issions, e"bal o" !"itten, .ade by t+e ,a"ties in t+e ,leadin*s o" in t+e cou"se o% t+e t"ial o" ot+e" ,"oceedin*s in t+e sa.e case a"e conclusi e, no e idence bein* "e?ui"ed to ,"o e t+e sa.e, and cannot be cont"adicted unless s+o!n to +a e been .ade t+"ou*+ ,al,able .ista6e o" t+at no suc+ ad.ission !as .ade- )o"eo e", !+en t+e due e8ecution and *enuineness o% an inst"u.ent a"e dee.ed ad.itted because o% t+e ad e"se ,a"tyMs %ailu"e to .a6e a s,eci%ic e"i%ied denial t+e"eo%, t+e inst"u.ent need not be ,"esented %o".ally in e idence %o" it .ay be conside"ed an ad.itted %actPetitione"s %ailed to touc+ on t+e .atte" o% t+e non7,"esentation o% t+e bills o% ladin* in t+ei" b"ie% and ea"lie" on in t+e a,,ellate ,"oceedin*s in t+is casePetitione"s ac6no!led*ed t+e e8istence o% said bills o% ladin*- By +a in* t+e ca"*o s+i,,ed on "es,ondent ca""ie"Ms essel and late" .a6in* a clai. %o" loss on t+e basis o% t+e bills o% ladin*, ,etitione"s %o" all intents and ,u",oses acce,ted said billsAffirmative 'n affirmative defense is an alle*ation o% a ne! .atte" !+ic+, !+ile hy%othetically admitting t+e .ate"ial alle*ations in t+e ,leadin* o% t+e clai.ant !ould ne e"t+eless ,"e ent o" ba" "eco e"y by +i. It is not a denial o% an essential in*"edient in t+e ,lainti%%s cause o% action, but one !+ic+, i% establis+ed, !ill be a *ood de%ense, an a oidance o% t+e clai. It .ust be o% suc+ natu"e as to ba" t+e ,lainti%% %"o. clai.in* on +is cause o% action &+e ,lainti%% .ay deny o" cont"o e"t it by %ilin* a "e,ly- I% no "e,ly is, a%%i".ati e de%enses a"e dee.ed cont"o e"ted e,ce%t t+ose !+ic+ a"e "e?ui"ed to be unde" oat+&+e a%%i".ati e de%enses include /10 %"aud, /40 statute o% li.itations, /50 "elease,
)E(DE@, IV'( VIA&OR /4D, 150

/:0 />0 /=0 /$0 /F0 /#0 /1D0

,ay.ent, ille*ality, statute o% %"auds, esto,,el, %o".e" "eco e"y, disc+a"*e in ban6"u,tcy, and any ot+e" .atte" by !ay o% con%ession and a oidance

Im# ied admissi!ns )eneral rule* De%enses and ob3ections not ,leaded eit+e" in a .otion to dis.iss o" in t+e ans!e" a"e dee.ed !ai ed+,ce%tion* &+e *"ounds o% /10 Lac6 o% 3u"isdiction o e" t+e sub3ect .atte"9 /40 Litis ,endentia /t+at t+e"e is anot+e" action ,endin* bet!een t+e sa.e ,a"ties %o" t+e sa.e cause09 /50 Res 3udicata /t+at t+e action is ba""ed by a ,"io" 3ud*.ent0, and /:0 P"esc"i,tion Peri!ds t! # ead Answer to the com%laintWit+in 1> days a%te" se" ice o% su..ons, unless a di%%e"ent ,e"iod is %i8ed by t+e cou"t /Sec- 1, Rule 110 Answer of a defendant foreign %rivate /uridical entity-1 Wit+in 5D days a%te" "ecei,t o% su..ons !+e"e t+e de%endant is /10 a %o"ei*n ,"i ate 3u"idical entity and /40 se" ice o% su..ons is .ade on t+e *o e"n.ent o%%icial desi*nated by la! to "ecei e t+e sa.e/Sec- 4, Rule 110 Answer to amended com%laint* Filed as a matter of rightWit+in 1> days a%te" bein* se" ed !it+ a co,y o% t+e a.ended co.,laint0ot a matter of rightWit+in 1D days %"o. notice o% t+e O"de" ad.ittin* t+e sa.e 'n ans!e" ea"lie" %iled .ay se" e as t+e ans!e" to t+e a.ended co.,laint, i% no ne! ans!e" is %iled(O&E2 &+is Rule a,,lies to ans!e"s to /10 an a.ended counte"clai., /40 a.ended c"oss7clai., /50 a.ended t+i"d /%ou"t+, etc-01 ,a"ty co.,laint, and /:0 a.ended co.,laint7in7inte" ention/Sec- 5, Rule 110 Waiver !f defenses ' co.,ulso"y counte"clai., o" a c"oss7clai., not set u, s+all be ba""ed- /Sec- 4, Rule #0

CIVIL PROCEDURE REVIEWER5=

COUN1ERCLAI-S Defined and in $enera ' counterclaim is any clai. !+ic+ a de%endin* ,a"ty .ay +a e a*ainst an o,,osin* ,a"ty- /Sec- =, Rule =0 It ,a"ta6es o% a co.,laint by t+e de%endant a*ainst t+e ,lainti%% Gclai.K .ay "e%e" to a clai. %o" /a0 )oney9 o" /b0 So.e ot+e" "elie% a*ainst an o,,osin* ,a"ty U,on %ilin* o% t+e counte"clai., t+e de%endant beco.es t+e ,lainti%%, !+ile t+e o"i*inal ,lainti%% beco.es t+e de%endant It *i es "ise to t!o co.,laints2 t+e o"i*inal co.,laint and t+e counte"clai.=!w raised Inc uded in answer ' counte"clai. .ay be asse"ted a*ainst an o"i*inal counte"7clai.ant- /Sec- #, Rule =0 ' co.,ulso"y, counte"clai. o" a c"oss7clai. t+at a de%endin* ,a"ty +as at the time he files his answer s+all be contained t+e"ein- /Sec- F, Rule 110 After answer ' counte"clai. .ay be asse"ted a*ainst an o"i*inal counte"7clai.ant- /Sec- #, Rule =0 ' counte"clai. o" a c"oss7clai. !+ic+ eit+e" /10 .atu"ed or /40 !as ac?ui"ed by a ,a"ty a%te" se" in* +is ,leadin* .ay, !it+ t+e ,e".ission o% t+e cou"t, be ,"esented as a counterclaim o" a cross2claim by su,,le.ental ,leadin* before 3ud*.ent- /Sec- #, Rule 110 >inds !f c!unterc aims C!m#u s!r. ' com%ulsory counterclaim is one !+ic+, bein* co*niHable by t+e "e*ula" cou"ts o% 3ustice, /10 '"ises out o% o" is connected !it+ t+e t"ansaction o" occu""ence constitutin* t+e sub3ect .atte" o% t+e o,,osin* ,a"tys clai. and /40 Does not "e?ui"e %o" its ad3udication t+e ,"esence o% t+i"d ,a"ties o% !+o. t+e cou"t cannot ac?ui"e 3u"isdiction/50 Suc+ a counte"clai. .ust be !it+in t+e 3u"isdiction o% t+e cou"t bot+ as to t+e amount and t+e nature t+e"eo%, e,ce%t t+at in an o"i*inal action be%o"e t+e R&C, t+e counte"clai. .ay be conside"ed co.,ulso"y "e*a"dless o% t+e a.ount/Sec- $, Rule =0 (O&E2 ' co.,ulso"y counte"clai., o" a c"oss7clai., not set u, s+all be barred- /Sec- 4, Rule #0

)It cann!t be inde#endent . ad4udicated BA FINANCE COR# v. CO (!!4 SCRA (6& (%%&" Co.,ulso"y counte"clai., bein* ancilla"y to t+e ,"inci,al cont"o e"sy, cannot Q"e.ain ,endin* %o" inde,endent ad3udication by t+e cou"t-Q Dis.issal o% t+e co.,laint ca""ies !it+ it t+e dis.issal o% t+e co.,ulso"y counte"clai.-

C'C&S2 B' Cinance b"ou*+t an action "eco e" a su. o% .oney %"o. a c"edit acco..odation in t+e %o". o% a discountin* line !+ic+ it *"anted to Ru%ino Co, and %"o. ce"tain su"etys+i, a*"ee.ents e8ecuted in its %a o" by +is co7"es,ondents- 's t+ei" counte"clai., "es,ondents alle*ed o e",ay.ents and da.a*es- &+ey asse"ted t+at t+ey a"e no lon*e" indebted to ,etitione" and a"e in %act entitled to "ei.bu"se.ent %o" o e",ay.ents- &+ey as6ed %o" da.a*es %o" e8,enses incu""ed and incon eniences su%%e"ed by t+e. as a "esult o% t+e %ilin* o% t+e ,"esent action'%te" "es,ondentsM '.ended 'ns!e" to Co.,laint !it+ Co.,ulso"y Counte"clai. !as ad.itted, t+e case !as set %o" P"e7&"ial Con%e"ence- &+e con%e"ence !as "e,eatedly "eset- Counsel %o" B' Cinance %ailed to attend t+e P"e7&"ial Con%e"ence- Conse?uently, Co .o ed %o" dis.issal o% t+e case !it+out ,"e3udice- &+e .otion !as *"antedRes,ondents .o ed to set t+e "ece,tion o% t+ei" e idence in su,,o"t o% t+ei" counte"clai.- &"ial cou"t denied t+e .otion- C' "e e"sed t+e lo!e" cou"ts o"de" and di"ected it to set t+e "ece,tion o% t+ei" e idence on t+ei" counte"clai.- )otion %o" "econside"ation !as denied, +ence t+e instant ,etition alle*in* t+at t+e dis.issal o% t+e co.,laint ca""ied !it+ it t+e dis.issal o% "es,ondents counte"clai.ISSUE2 .hether the dismissal of the com%laint carries with it the dismissal of the counterclaim 6ES2 ' co.,ulso"y counte"clai. cannot Q"e.ain ,endin* %o" inde,endent ad3udication by t+e cou"t-Q &+is is because it is au8ilia"y to t+e ,"oceedin* in t+e o"i*inal suit and .e"ely de"i es its 3u"isdictional su,,o"t t+e"e%"o.- &+us, i% t+e t"ial cou"t no lon*e" ,ossesses 3u"isdiction to ente"tain t+e .ain action o% t+e case, an !+en it dis.isses t+e sa.e, t+en t+e co.,ulso"y counte"clai. bein* ancilla"y to t+e ,"inci,al cont"o e"sy, .ust li6e!ise be si.ila"ly dis.issed since no 3u"isdiction "e.ains %o" t+e *"ant o% any "elie% unde" t+e counte"clai.In t+e case at ba", t+e sa.e e idence needed to sustain t+e counte"clai. o% "es,ondents !ould also "e%ute t+e cause o% action in ,etitione"Ms co.,laint- I% ,"i ate

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER5$

"es,ondents could success%ully s+o! t+at t+ey actually .ade o e",ay.ents on t+e c"edit acco..odations e8tended by ,etitione", t+en t+e co.,laint .ust %ail&+e"e%o"e t+e counte"clai. is co.,ulso"y- Bo!e e", !it+ t+e dis.issal o% t+e co.,laint on de%endantMs o!n .otion, it li6e!ise dis.issed t+e counte"clai. ?uestionin* t+e co.,laintW+at t+e de%endants could +a e done instead o% .o in* %o" dis.issal !as to as6 t+e t"ial cou"t to decla"e ,etitione"s to be Qnon7suitedQ on t+ei" co.,laint so t+at t+e latte" can no lon*e" ,"esent +is e idence t+e"eon, and si.ultaneously .o e t+at +e be decla"ed as in de%ault on t+e co.,ulso"y counte"clai., and "ese" e t+e "i*+t to ,"esent e idence e8 ,a"te on +is counte"clai.- &+is !ill enable de%endant !+o !as un3ustly +aled to cou"t to ,"o e +is co.,ulso"y counte"clai., !+ic+ is inte"t!ined !it+ t+e co.,laint, because t+e t"ial cou"t "etains 3u"isdiction o e" t+e co.,laint and o% t+e !+ole case- &+e non7dis.issal o% t+e co.,laint, t+e non7suit not!it+standin*, ,"o ides t+e basis %o" t+e co.,ulso"y counte"clai. to "e.ain acti e and subsistin*)0urisdicti!n &b!t+ as t! am!unt and natureB e3ce#ti!n( MACEDA v. CA ((%)%" &+e )&C does not +a e o"i*inal 3u"isdiction o e" t+e counte"clai. as it e8ceeds P4D,DDD, +ence t+e R&C did not +a e a,,ellate 3u"isdiction o e" t+e clai.C'C&S2 S,ouses '"tu"o and )a8i.a e.i*"ated to t+e U-S- and leased t+ei" +ouse and lot to t+ei" ne,+e!, )aceda, %o" P4DD ,e" .ont+- Wit+ t+e s,ouses ,e".ission, ,etitione" "e,ai"ed and "eno ated t+e +ouse sub3ect to "ei.bu"se.ent %o" e8,enses- &+e "e.odelin* 3ob cost P:D,DDD- &+e s,ouses .ade ,lans to "ei.bu"se +i.)aceda int"oduced .o"e i.,"o e.entsW+en '"tu"o ,assed a!ay in t+e US, +is atto"ney7in7%act ,"o.ised to sell to )aceda t+e ,"o,e"ty %o" P14>,DDD a%te" t+e t"ans%e" o% title to +is !ido!ed auntBo!e e", it !as late" sold by t+e aunt to )"- Eo.eH, and t+e latte" to Pablo @ubi"i- E3ect.ent cases !e"e %iled a*ainst )aceda, but all !e"e dis.issed- )a8i.a died in t+e US@ubi"i sold t+e ,"o,e"ty to Ce.ent Cente", Inc-, !+o as6ed ,etitione" to acate because o% a +ousin* ,"o3ect it +ad %o" its e.,loyees- )aceda insisted on bein* "ei.bu"sed %o" +is i.,"o e.ents as t+e o"i*inal o!ne"s +ad ,"o.ised to do- Co".al de.ands to acate and %o" ,ay.ent o% P:,DDD .ont+ly "ental %"o. ',"il 1>, 1#F4 !e"e sent to +i. by t+e co.,any- 'not+e" e3ect.ent suit !as %iled a*ainst +i. in t+e )&CIn +is ans!e" to t+e co.,laint, )aceda set u, a P4:D,DDD counte"clai., t+e alle*ed alue o% +is i.,"o e.ents- &+e )&C o"de"ed +i. to acate t+e ,"e.ises and ,ay Ce.ent Cente" "ent- &+e latte" !as o"de"ed to "ei.bu"se +i. %o" t+e i.,"o e.ents&+e R&C set aside t+e decision and o"de"ed Ce.ent Cente" to ,ay )aceda P1F4,DDD as necessa"y and use%ul i.,"o e.ents)E(DE@, IV'( VIA&OR /4D, 150

&+e C' "e e"sed t+e decision because o% )&Cs lac6 o% 3u"isdiction, and, in conse?uence t+e R&C decisions lac6 o% le*al basisISSUE2 .hether the M4C had /urisdiction over an e/ectment case where the lesseeGs counterclaim e,ceeds the courtGs /urisdictional limit NO2 &+e )&C did not +a e o"i*inal 3u"isdiction o e" +is counte"clai. as it e8ceeds P4D,DDDCo""es,ondin*ly, t+e R&C did not +a e a,,ellate 3u"isdiction o e" t+e clai.- &+e decision o% t+e )&C a!a"din* )aceda P1>F,DDD on +is counte"clai., and t+at o% t+e R&C "aisin* t+e a!a"d to P1F4,4DD, !e"e in alid %o" lac6 o% 3u"isdiction- &+e 3u"isdiction o% t+e )&C in a ci il action %o" su. o% .oney is li.ited to a de.and t+at Qdoes not e8ceed P4D,DDD e8clusi e o% inte"est and costs but inclusi e o% da.a*es o% !+ate e" 6ind-Q /Sec- 55, sub,a"1, B-P- Bl*- 14#-0 ' counte"clai. in t+e .unici,al o" city cou"t beyond t+at 3u"isdictional li.it .ay be ,leaded only by !ay o% de%ense to !ea6en t+e ,lainti%%s clai., but not to obtain a%%i".ati e "elie%0,i in$ fees and n!n)f!rum certificati!n n!t reCuired Permissive ' %ermissive counterclaim is one !+ic+ does not a"ise out o% t+e o,,osin* ,a"tys clai. o" necessa"ily connected !it+ t+e t"ansaction o" occu""ence constitutin* t+e sub3ect .atte" o% t+e o,,osin* ,a"tys clai. It is not connected !it+ t+e ,lainti%%s cause o% action It is (O& ba""ed e en i% not ,leaded in t+e ans!e" It .ay be %iled as an inde,endent action by t+e de%endant as ,lainti%%+,am%les Counte"clai. %o" da.a*es based on cul%a a3uiliana in a co.,laint %o" collection o% a loan Counte"clai. %o" da.a*es based on ?uasi7delict Counte"clai. %o" t+e ,ay.ent o% t+e ,"ice o% a ca" in an action to "eco e" a ,iece o% land Distinctions between counterclaim com%ulsory and %ermissive

PER)ISSIVE )ay be set u, as an inde,endent action and !ill not be ba""ed i% not in t+e ans!e" 'n initiato"y ,leadin* S+ould be acco.,anied by a ce"ti%ication a*ainst %o"u. s+o,,in* and !+en le*ally "e?ui"ed, a ce"ti%icate to %ile action by t+e Lu%ong 4aga%amaya%a )ust be ans!e"ed by t+e ,a"ty a*ainst !+o. it is

CO)PULSORT )ust be contained in t+e ans!e"9 i% it is not set u,, it s+all be ba""ed (ot an initiato"y ,leadin*

Does not "e?ui"e ce"ti%ications

Cailu"e to ans!e" t+is is (O& a cause %o" a de%ault

CIVIL PROCEDURE REVIEWER5F

inte",osed, ot+e"!ise, +e .ay be decla"ed in de%ault

decla"ation- Co.,ulso"y counte"clai.s .e"ely "eite"atin* s,ecial de%enses a"e dee.ed cont"o e"ted e en !it+out a "e,ly (o need to ,ay doc6et %ees BU& (O&E2 ') :747D: no! "e?ui"es ,ay.ent o% %ees %o" co.,ulso"y counte"clai.s /Riano0

Doc6et and ot+e" la!%ul %ees s+ould be ,aid

2OREA E3CHANGE BAN2 v. GON/ALES (456 SCRA !!4 !005" Co"u. s+o,,in* is a *"ound %o" su..a"y dis.issal o% bot+ initiato"y ,leadin*s !it+out ,"e3udice to t+e ta6in* o% a,,"o,"iate action a*ainst t+e counsel o" ,a"ty conce"ned&+e counte"clai.s o% t+e PBDI, et al-, %o" .o"al and e8e.,la"y da.a*es !e"e .e"ely ,e".issi e9 +ence, t+ey !e"e .andated to a,,end t+e"eto a ce"ti%ication o% non7%o"u. s+o,,in*C'C&S2 PBDI and )a*no et al, %iled a co.,laint in t+e R&C a*ainst 'u., a Ao"ean (ational and ,"esident o% PBDI, and t+e Ao"ea E8c+an*e Ban6 /AEB0- &+ey alle*ed t+at t+"ou*+ t+e .ac+ination o% 'u., AEB *"anted a U>DD,DDD-DD loan to t+e PBDI !it+ t+e condition t+at t+e said loan be de,osited !it+ t+e AEB in t+e na.e o% PBDI&+e"ea%te", t+e ,lainti%%s e8ecuted a "eal estate .o"t*a*e o e" t+ei" ,"o,e"ties as secu"ity %o" t+e said loanUnde" PBDIs boa"d "esolution, only 'u. and )endoHa !e"e aut+o"iHed si*nato"ies to all a,,lications %o" !it+d"a!als %"o. t+e said accounts- 'u. !it+d"e! U1=D,DDD-DD %"o. t+e account by %o"*in* )endoHas si*natu"e- Be !as .ade anot+e" !it+d"a!al, lea in* a balance o% U1=5,DDD-DD- 'u. alle*edly could not +a e !it+d"a!n said de,osits !it+out t+e AEBs conni ance'u.Ms %ailu"e to +eed de.ands %o" an accountin* o% t+e said !it+d"a!als and %o" t+e "estitution o% t+e said a.ounts constituted la"*e scale esta%a %o" !+ic+ t+ey a"e liable %o" e8e.,la"y and .o"al da.a*es- &+e AEB %iled a )otion to Dis.iss t+e co.,laint, !+ic+ t+e t"ial cou"t denied- &+e AEB %iled a ,etition %o" ce"tio"a"i and ,"o+ibition !it+ t+e C' %o" t+e nulli%ication o% t+e o"de"s o% t+e R&C)ean!+ile, in anot+e" case, AEB %iled a Co.,laint a*ainst )a*no et al and PBDI be%o"e t+e R&C %o" su. o% .oney and "e%o".ation o% t+e "eal estate .o"t*a*e e8ecuted by PBDI- PBDI and )a*no, et al- %iled a .otion to dis.iss on t+e *"ound o% %o"u. s+o,,in*, asse"tin* t+at t+e AEB s+ould +a e %iled its counte"clai. %o" collection and t+e "e%o".ation o% t+e .o"t*a*e in t+e %i"st ci il case- &+ey a e""ed t+at t+e essential ele.ents o% litis %endentia !e"e ,"esent- Bo!e e", t+e R&C denied t+e .otion to dis.issPBDI and )a*no, et al- t+e"e%o"e %iled t+ei" ans!e" !it+ counte"clai.s in t+e second case !+e"e t+ey denied indebtedness to t+e AEB, alle*in* t+e sa.e %acts in
)E(DE@, IV'( VIA&OR /4D, 150

t+ei" co.,laint in t+e %i"st ci il case- AEB %iled a .otion to dis.iss t+ese counte"clai.s, alle*in* t+at t+e causes o% action %o" PBDIs co.,laint %o" collection o% U1=D,DDD-DD and da.a*es, and %o" t+e counte"clai.s in t+is second case %o" t+e set7o%% o% t+e said a.ount a*ainst its clai. o% U>DD,DDD-DD !e"e identical9 +ence, t+ei" counte"clai.s s+ould be dis.issed %o" %o"u. s+o,,in*PBDI, et al- o,,osed t+e .otion to dis.iss t+e co.,laint, alle*in* t+at AEB %ailed to include %o"u. s+o,,in* as a *"ound in its .otion to dis.iss t+ei" co.,laint in t+e %i"st case9 +ence, it is bound by t+e o.nibus .otion "ule- PBDI, et al- also o,,osed t+e .otion to dis.iss t+ei" counte"clai.s on t+e *"ound t+at t+e causes o% action in t+e t!o cases !e"e un"elated- &+ey asse"ted t+at t+e sub3ect .atte", causes o% action and t+e issues in t+e t!o cases !e"e di%%e"ent- &+e R&C denied AEBMs .otion to dis.iss t+e co.,laint and .otion to dis.iss t+e counte"clai.s-AEB %iled its ans!e" to t+e counte"clai.s o% t+e PBDI, et al-, in t+e second caseC', in a 3oint decision, a%%i".ed t+e R&C !it+ "es,ect to t+e %i"st case, but dis.issed "es,ondents counte"clai.s in t+e second case %o" %o"u.7s+o,,in*- &+e C' decla"ed t+at t+e counte"clai.s o% t+e PBDI, et al-, %o" .o"al and e8e.,la"y da.a*es !e"e .e"ely ,e".issi e9 +ence, t+ey !e"e .andated to a,,end t+e"eto a ce"ti%ication o% non7%o"u. s+o,,in*ISSUE2 .hether the counterclaim in the second case should be dismissed for the absence of a certificate of non2 forum sho%%ing, and whether the first case should be dismissed for forum sho%%ing 6ES2 In inte",osin* t+ei" counte"clai. %o" set7o%% o% t+e U1=D,DDD-DD a*ainst t+ei" loan o% U>DD,DDD-DD in t+e second case, as !ell as t+e counte"clai.s %o" .o"al da.a*es, and e8e.,la"y da.a*es, t+e "es,ondents t+e"eby en*a*ed in %o"u. s+o,,in*&+e *ene"al "ule is t+at co.,liance !it+ t+e ce"ti%icate o% %o"u. s+o,,in* is se,a"ate %"o. and inde,endent o% t+e a oidance o% t+e act o% %o"u. s+o,,in* itsel%- Co"u. s+o,,in* is a *"ound %o" su..a"y dis.issal o% bot+ initiato"y ,leadin*s !it+out ,"e3udice to t+e ta6in* o% a,,"o,"iate action a*ainst t+e counsel o" ,a"ty conce"ned&+e"e is %o"u. s+o,,in* !+en, bet!een an action ,endin* be%o"e t+e cou"t and anot+e" one, t+e"e e8ist2/a0 identity o% ,a"ties, o" at least suc+ ,a"ties as "e,"esent t+e sa.e inte"ests in bot+ actions9 /b0 identity o% "i*+ts asse"ted and "elie% ,"ayed %o", t+e "elie% bein* %ounded on t+e sa.e %acts9 and /c0 t+e identity o% t+e t!o ,"ecedin* ,a"ticula"s is suc+ t+at any 3ud*.ent "ende"ed in t+e ot+e" action !ill, "e*a"dless o% !+ic+ ,a"ty is success%ul, a.ount to "es 3udicata in t+e action unde" conside"ation&+e"e is %o"u. s+o,,in* !+e"e a liti*ant sues t+e sa.e ,a"ty a*ainst !+o. anot+e" action o" actions %o" t+e alle*ed iolation o% t+e sa.e "i*+t and t+e en%o"ce.ent o% t+e sa.e "elie% isIa"e still ,endin*- &+e de%ense o% litis %endentia in one case is a ba" to t+e ot+e"Iot+e"s9 and, a %inal 3ud*.ent is one t+at !ould constitute "es 3udicata and t+us !ould cause t+e dis.issal o% t+e "est- 'bsolute identity o% ,a"ties is not "e?ui"ed- It is enou*+ t+at t+e"e is substantial identity o% ,a"ties-

CIVIL PROCEDURE REVIEWER5#

Remedies ,!r fai ure t! raise c!m#u s!r. c!unterc aim ' co.,ulso"y counte"clai., o" a c"oss7clai., not set u, s+all be ba""ed- /Sec- 4, Rule #0 &+is "e%e"s to a counte"clai. de%endant +as at t+e ti.e o% %ilin* o% t+e ans!e" Oversi$+t" inadvertence" e3cusab e ne$ ect W+en a ,leade" %ails to set u, a counte"clai. o" a c"oss7 clai. t+"ou*+ /10 o e"si*+t, /40 inad e"tence, /50 e8cusable ne*lect, or /:0 !+en 3ustice "e?ui"es, Be .ay, by lea e o% cou"t, set u, t+e counte"clai. o" c"oss7clai. by a.end.ent before 3ud*.ent- /Sec- 1D, Rule 110 ANSWER 1O COUN1ERCLAIIn $enera 'n answer is a ,leadin* in !+ic+ a de%endin* ,a"ty sets %o"t+ +is de%enses- /Sec- :, Rule =0 Peri!d t! # ead ' counte"clai. o" c"oss7clai. .ust be ans!e"ed !it+in 1D days %"o. service- /Sec- :, Rule 110 REPL6 Defined and in $enera ' re%ly is a ,leadin*, t+e o%%ice o" %unction o% !+ic+ is to deny, o" alle*e %acts in denial o" a oidance o% ne! .atte"s alle*ed by !ay o% de%ense in t+e ans!e" and t+e"eby 3oin o" .a6e issue as to suc+ ne! .atte"s ' "e,ly is t+e "es,onsi e ,leadin* to an ans!e", not to counte"clai. o" c"oss7clai. 0ot mandatory1I% a ,a"ty does not %ile suc+ "e,ly, all t+e ne! .atte"s alle*ed in t+e ans!e" a"e dee.ed cont"o e"ted I% t+e ,lainti%% !is+es to inte",ose any clai.s a"isin* out o% t+e ne! .atte"s so alle*ed suc+ clai.s s+all be set %o"t+ in an a.ended or su,,le.ental co.,laint- /Sec- 1D, Rule =0 W+en reCuired C+a en$e due t! aut+enticit. !f d!cuments W+en an action o" de%ense is %ounded u,on a !"itten inst"u.ent, co,ied in o" attac+ed to t+e co""es,ondin* ,leadin*, t+e *enuineness and due e8ecution o% t+e inst"u.ent s+all be dee.ed ad.itted unless t+e ad e"se ,a"ty /10 s,eci%ically denies t+e., and /40 sets %o"t+ !+at +e clai.s to be t+e %acts9 /50 unde" oat+BU& t+e "e?ui"e.ent o% an oat+ does not a,,ly !+en
)E(DE@, IV'( VIA&OR /4D, 150

/10 t+e ad e"se ,a"ty does not a,,ea" to be a ,a"ty to t+e inst"u.ent or /40 !+en co.,liance !it+ an o"de" %o" an ins,ection o% t+e o"i*inal inst"u.ent is "e%used- /Sec- F, Rule F0 CASENT REALT. DE*1T COR# v. #HILBAN2ING COR#ORATION (!00'" W+en t+e de%ense in t+e ans!e" is based on an actionable docu.ent, a Re,ly s,eci%ically denyin* it unde" oat+ .ust be .ade9 ot+e"!ise t+e *enuineness and due e8ecution o% t+e docu.ent !ill be dee.ed ad.ittedC'C&S2 P+ilban6in* Co",o"ation /P+ilBan6in*0 %iled a co.,laint a*ainst Casent Realty Co",o"ation /Casent0 be%o"e t+e R&C %o" collection on t!o ,"o.isso"y notes assi*ned by Ra"e Realty Co",o"ation- In its 'ns!e", Casent "aised, a.on* ot+e"s, as de%enses t+e Dacion en Pa*o /Dacion0 e8ecuted bet!een ,etitione" and "es,ondent, and t+e Con%i".ation State.ent issued by "es,ondent statin* t+at ,etitione" +ad no loans !it+ t+e ban6 as o% Dece.be" 51, 1#FF- Petitione" t+en %iled a )otion %o" Jud*.ent on De.u""e" to t+e E idence, ,ointin* out t+at t+e P+ilBan6in*s %ailu"e to %ile a Re,ly to t+e 'ns!e" constituted an ad.ission o% t+e *enuineness and e8ecution o% said docu.ents9 and t+at since t+e Dacion oblite"ated ,etitione"s obli*ation co e"ed by t+e ,"o.isso"y notes, t+e ban6 +ad no "i*+t to collect any.o"e&+e R&C "uled in %a o" o% Casent and dis.issed t+e co.,laintOn a,,eal, t+e C' %ound t+at unde" t+e Deed o% 'ssi*n.ent, "es,ondent P+ilBan6in* clea"ly +ad t+e "i*+t to ,"oceed a*ainst t+e ,"o.isso"y notes assi*ned by Ra"e RealtyISSUE2 .hether res%ondentBs failure to file a !e%ly and deny the Dacion and Confirmation $tatement under oath constituted a /udicial admission of the genuineness and due e,ecution of these documents 6ES2 W+en an action o" de%ense is %ounded u,on a !"itten inst"u.ent, co,ied in o" attac+ed to t+e co""es,ondin* ,leadin* as ,"o ided in t+e ,"ecedin* section, t+e *enuineness and due e8ecution o% t+e inst"u.ent s+all be dee.ed ad.itted unless t+e ad e"se ,a"ty, unde" oat+, s,eci%ically denies t+e., and sets %o"t+, !+at +e clai.s to be t+e %acts9 but t+e "e?ui"e.ent o% an oat+ does not a,,ly !+en t+e ad e"se ,a"ty does not a,,ea" to be a ,a"ty to t+e inst"u.ent o" !+en co.,liance !it+ an o"de" %o" an ins,ection o% t+e o"i*inal inst"u.ent is "e%usedSince "es,ondent %ailed to %ile a Re,ly, in e%%ect, "es,ondent ad.itted t+e *enuineness and due e8ecution o% said docu.ents- &+is 3udicial ad.ission s+ould +a e been conside"ed by t+e a,,ellate cou"t in "esol in* t+e de.u""e" to e idenceRule F, Section F s,eci%ically a,,lies to actions o" de%enses %ounded u,on a !"itten inst"u.ent, and ,"o ide t+e .anne" o% denyin* it- It is .o"e cont"ollin* t+an Rule =, Section 1D !+ic+ .e"ely ,"o ides t+e e%%ect o% %ailu"e to

CIVIL PROCEDURE REVIEWER:D

%ile a Re,ly- &+us, !+e"e t+e de%ense in t+e 'ns!e" is based on an actionable docu.ent, a Re,ly s,eci%ically denyin* it unde" oat+ .ust be .ade9 ot+e"!ise, t+e *enuineness and due e8ecution o% t+e docu.ent !ill be dee.ed ad.itted- Since "es,ondent %ailed to deny t+e *enuineness and due e8ecution o% t+e Dacion and Con%i".ation State.ent unde" oat+, t+en t+ese a"e dee.ed ad.itted and .ust be conside"ed by t+e cou"t in "esol in* t+e de.u""e" to e idenceIt .ust be noted, +o!e e", t+at ad.ission o% t+e *enuineness and due e8ecution o% t+e Dacion and Con%i".ation State.ent does not ,"e ent t+e int"oduction o% e idence s+o!in* t+at t+e Dacion e8cludes t+e ,"o.isso"y notes- Petitione", by !ay o% de%ense, s+ould +a e ,"esented e idence to s+o! t+at t+e Dacion includes t+e ,"o.isso"y notes1=IRDE,OUR1=)PAR16 CO-PLAIN1 Defined ' third (fourth, etc#"2%arty com%laint is a clai. t+at a de%endin* ,a"ty .ay, !it+ lea e o% cou"t, %ile a*ainst a ,e"son not a ,a"ty to t+e action, called t+e t+i"d /%ou"t+, etc-01,a"ty de%endant, %o" /10 cont"ibution, /40 inde.nity, /50 sub"o*ation or /:0 any ot+e" "elie%, in "es,ect o% +is o,,onents clai.- /Sec- 11, Rule =0 (O&E2 It is (O& ,"o,e" to %ile a t+i"d7,a"ty co.,laint a*ainst one !+o is al"eady a ,a"ty to t+e action, suc+ as a*ainst a ,lainti%% o" a co7de%endant- But a c"oss7clai. .ay be %iled a*ainst t+e.Remedies w+en denied W+en a co.,laint is dis.issed, t+e t+i"d7,a"ty co.,laint is also dis.issed- But i% t+e ,lainti%% a,,eals t+e dis.issal, t+e de%endant7t+i"d7,a"ty ,lainti%% must also a,,eal to obtain a%%i".ati e "elie%ANSWER CO-PLAIN1 1O 1=IRDE,OUR1=)PAR16

EF1ENSION O, 1I-E 1O PLEAD &+e cou"t .ay e8tend t+e ti.e to ,lead ,"o ided in t+ese Rules2 /10 U,on .otion and /40 on suc+ te".s as .ay be 3ustMotion to e,tend %eriod to %lead )ust be in !"itin*, and be%o"e %iled be%o"e t+e la,se o% ,e"iod &i.e to ,lead can only be e8tended, no s+o"tened &+e cou"t .ay also, u,on li6e terms, allo! an ans!e" o" ot+e" ,leadin* to be %iled after t+e ti.e %i8ed by t+ese Rules- /Sec- 11, Rule 110 'n o"de" allo!in* t+e %ilin* o% a late ans!e" o" ot+e" ,leadin* is inte"locuto"y, and t+e"e%o"e, una,,ealable&,!rma ReCuirements( ,ILIN% AND SERVICE O, PLEADIN%S" -O1IONS AND ORDERS Verificati!n )eneral !ule* Pleadin*s (EED (O& be unde" oat+, e"i%ied o" acco.,anied by a%%ida it+,ce%tion* !+en ot+e"!ise s,eci%ically "e?ui"ed by la! o" "ule- &+e %ollo! ,leadin*s .ust be e"i%ied2 Petition to ta6e de,osition be%o"e action9 Petition %o" "elie% %"o. 3ud*.ent9 ',,eal by Certiorari %"o. C' to SC9 ',,lication %o" P"eli.ina"y In3unction or &e.,o"a"y Rest"ainin* O"de"9 ',,lication %o" ',,oint.ent o% a Recei e"9 Petition %o" Certiorari, P"o+ibition, o" Mandamus9 'll ,leadin*s o% %o"cible ent"y and unla!%ul detaine"9 Petition %o" a,,oint.ent o% *ene"al *ua"dian9 Petition o% *ua"dian %o" lea e to sell o" encu.be" ,"o,e"ty o% estate9 Petition to decla"e co.,etency o% !a"d9 ',,lication %o" W"it o% habeas cor%us9 Petition %o" c+an*e o% na.e9 Petition %o" olunta"y dissolution o% co",o"ation9 Petition to co""ect ent"ies in ci il "e*ist"y9 Pleadin*s in Su..a"y P"ocedu"e&+e %ollo!in* need not be e"i%ied but .ust be unde" oat+2 Denial o% *enuineness and dues e8ecution o% actionable docu.ent9 Denial o% alle*ations o% usu"y9 )otion to set aside o"de" o% de%ault9 'ns!e" to !"itten inte""o*ato"ies9 'ns!e" to "e?uest %o" ad.ission'%%ida it o% .e"it o" su,,o"tin* a%%ida it is "e?ui"ed in t+e %ollo!in*2

In $enera ' t+i"d /%ou"t+, etc-01,a"ty de%endant .ay alle*e in +is ans!e" /10 +is de%enses, /40 counte"clai.s, /50 c"oss7clai.s, /:0 de%enses t+at t+e t+i"d /%ou"t+, etc-01,a"ty ,lainti%% .ay +a e a*ainst t+e o"i*inal ,lainti%%s clai., or />0 a counte"clai. a*ainst t+e o"i*inal ,lainti%% in "es,ect o% t+e latte"s clai. a*ainst t+e t+i"d7 ,a"ty ,lainti%%, in ,"o,e" cases/Sec- 15, Rule =0 1ime t! # ead &+e sa.e ,e"iod as t+e ans!e" to t+e co.,laint /Sec- >, Rule 1102 !it+in 1> days %"o. se" ice o% su..ons-

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER:1

)otion %o" su..a"y 3ud*.ent o" o,,osition t+e"eto9 )otion %o" ne! t"ial9 '%%ida it o% t+i"d7,a"ty clai. on le ied ,"o,e"ty9 P"oo% "e?ui"ed o% "ede.,tione"9 Co.,laint !it+ ,"aye" %o" ,"eli.ina"y attac+.ent9 '%%ida it o% t+i"d7,a"ty clai. on attac+ed ,"o,e"ty9 )otion to dissol e ,"eli.ina"y in3unction on *"ound o% i""e,a"able da.a*e to .o ant !+ile ad e"se ,a"ty can be %ully co.,ensated Co.,laint %o" "e,le in2 Clai. a*ainst estate o% decedent-

/%0

i% +e s+ould t+e"ea%te" lea"n t+at t+e sa.e o" si.ila" action o" clai. +as been %iled o" is ,endin*, +e s+all "e,o"t t+at %act !it+in %i e />0 days t+e"e%"o. to t+e cou"t !+e"ein +is a%o"esaid co.,laint o" initiato"y ,leadin* +as been %iled-

Fow %leading is verified ' ,leadin* is e"i%ied by an a%%ida it /50 t+at t+e a%%iant +as "ead t+e ,leadin* and /:0 t+at t+e alle*ations t+e"ein a"e t"ue and co""ect o% +is ,e"sonal 6no!led*e o" based on aut+entic "eco"ds(O&E2 ' ,leadin* "e?ui"ed to be e"i%ied s+all be t"eated as an unsi*ned ,leadin* i% it contains a e"i%ication /:0 based on Gin%o".ation and belie%,K />0 u,on G6no!led*e, in%o".ation and belie%,K or /=0 lac6s a ,"o,e" e"i%ication !emedies &+e cou"t .ay o"de" t+e co""ection o% t+e ,leadin* i% lac6in* e"i%ication &+e cou"t .ay also acct on t+e ,leadin* des,ite %ailu"e to ,"o,e"ly e"i%y i% unde" t+e ci"cu.stances, st"ict co.,liance !it+ t+e "ules .ay be dis,ensed !it+ &+e absence o% e"i%ication .ay be co""ected by "e?ui"in* an oat+Certificati!n a$ainst f!rum s+!##in$ Forum sho%%ing is t+e %ilin* o% .ulti,le suits in di%%e"ent cou"ts, eit+e" si.ultaneously o" successi ely, in ol in* t+e sa.e ,a"ties, to as6 t+e cou"ts to "ule on t+e sa.e o" "elated causes andIo" to *"ant t+e sa.e o" substantially t+e sa.e "elie% It is an act o% .al,"actice &+e sa.e s+all constitute di"ect conte.,t, a cause %o" ad.inist"ati e sanctions, as !ell as a *"ound %o" t+e su..a"y dis.issal o% t+e case !it+ ,"e3udice&+e certification against forum sho%%ing is a s!o"n state.ent by t+e ,lainti%% o" ,"inci,al ,a"ty ce"ti%yin* in an initiato"y ,leadin*2 /d0 t+at +e +as not co..enced any action o" %iled any clai. in ol in* t+e sa.e issues in any cou"t, t"ibunal o" ?uasi73udicial a*ency and, to t+e best o% +is 6no!led*e, no suc+ ot+e" action o" clai. is ,endin* t+e"ein9 /e0 i% t+e"e is suc+ ot+e" ,endin* action o" clai., a co.,lete state.ent o% t+e ,"esent status t+e"eo%9 and
)E(DE@, IV'( VIA&OR /4D, 150

(O&E2 &+e ce"ti%ication .ust be e8ecuted by t+e ,a"ty (O& t+e counsel, unless t+e latte" is aut+o"iHed s,eci%ically to do so- ' ce"ti%ication si*ned by t+e counsel is a de%ecti e ce"ti%ication and is a alid cause %o" dis.issalBU& &+is "ule .ust be libe"ally inte","eted2 Cailu"e o% ,a"ties to si*n because t+ey !e"e ab"oad .ay be a "easonable cause to e8e.,t t+e ,a"ties %"o. co.,liance !it+ t+e "e?ui"e.ent Si*nin* by one o% t+e ,etitione"s !as +eld to be substantial co.,liance &+is "e?ui"e.ent is .andato"y in t+e %ilin* o% a co.,laint and ot+e" initiato"y ,leadin*, but it is (O& 3u"isdictional&+e "ule a,,lies also to s,ecial ci il actions1nitiatory %leadings include /$0 O"i*inal co.,laint9 /F0 Pe".issi e counte"clai.9 /#0 C"oss7clai.9 /1D0 &+i"d /%ou"t+, etc-07,a"ty co.,laint9 /110 Co.,laint in inte" ention9 and /140 Petition o" a,,lication !+e"ein t+e ,a"ty asse"ts +is clai. o" "elie%(O&E2 (o ce"ti%ication "e?ui"ed %o" a co.,ulso"y counte"clai. since it is (O& an initiato"y ,leadin*+ffect of failure to com%ly /10 It shall (O& be cu"able by .e"e a.end.ent o% t+e co.,laint o" ot+e" initiato"y ,leadin*/40 BU& it s+all be cause %o" t+e dis.issal o% t+e case without ,"e3udice, unless ot+e"!ise ,"o ided, u,on .otion and a%te" +ea"in*E%%ect o% t+e sub.ission o% a %alse ce"ti%ication or non7 co.,liance !it+ any o% t+e unde"ta6in*s t+e"ein2 /10 Indi"ect conte.,t9 /40 'd.inist"ati e and c"i.inal actionsE%%ect o% !ill%ul and delibe"ate %o"u. s+o,,in* by t+e ,a"ty o" +is counsel2 /10 *"ound %o" su..a"y dis.issal !it+ ,"e3udice /40 di"ect conte.,t, and /50 a cause %o" ad.inist"ati e sanctions- /Sec- >, Rule $0 Fow to determine e,istence of forum sho%%ing &+e .ost i.,o"tant ?uestion is !+et+e" t+e ele.ents o% litis %endentia a"e ,"esent OR !+et+e" a %inal 3ud*.ent in one case !ill "esult to res /udicata&+e &ES& is !+et+e" in t+e t!o o" .o"e cases ,endin*, t+e"e is2 /d0 identity o% ,a"ties9 /e0 identity o% "i*+ts o" causes o% action, and /%0 identity o% "elie%s sou*+t-

CIVIL PROCEDURE REVIEWER:4

AO0AS v. CA (4%( SCRA &5& !006" I% t+e %o"u. s+o,,in* is not conside"ed !ill%ul and delibe"ate, t+e subse?uent cases s+all be dis.issed !it+out ,"e3udice on one o% t+e t!o *"ounds .entioned abo e- Bo!e e", i% t+e %o"u. s+o,,in* is !ill%ul and delibe"ate, bot+ /o" all, i% t+e"e a"e .o"e t+an t!o0 actions s+all be dis.issed !it+ ,"e3udiceC'C&S2 &+e Lut+e"an C+u"c+ in t+e P+ili,,ines /LCP0 +as local Lut+e"an con*"e*ations in t+"ee dist"icts, .ana*ed by se en di"ecto"s1t!o %o" eac+ dist"ict, and one as t+e national ,"esident- &+"ee dist"icts !e"e added, t+us a total o% ele en /110 di"ecto"s .ana*ed t+e LCP- Cont"o e"sies a"ose !+en t+e boa"d o% di"ecto"s te".inated t+e se" ices o% Eclesio Bi,e, business .ana:>*e" and co",o"ate sec"eta"y&+e 'o7's *"ou,, %o".e" LCP di"ecto"s and o%%ice"s, %iled SEC7SICD Case (o- 5>F$ a*ainst t+e Baton* *"ou,, t+e LCP di"ecto"s at t+at ti.e- &+e case sou*+t accountin* and da.a*es, and a,,oint.ent o% a .ana*e.ent co..ittee- Its causes o% action a"e2 /a0 non7 li?uidation andIo" non7accountin* o% t+e P=:,DDD ,"oceeds o% t+e La &"inidad land t"ansaction9 /b0 on7li?uidation andIo" unaccountin* o% P545,$>D !o"t+ o% cas+ ad ances9 /c0 dissi,ation o% t+e P:-F) *ene"al %und9 /d0 non7 "e*ist"ation o% LCPs land in Leyte9 /e0 se e"ance o% c+u"c+7,a"tne"s+i, !it+ Lut+e"an C+u"c+7)issou"i Synod9 and /%0 t"ans%e" o% co",o"ate boo6sSe e"al ot+e" cases !e"e also instituted a*ainst t+e Baton* *"ou,- 'n (LRC case ?uestioned t+e boa"d "esolutions !+ic+ te".inated e.,loyees, a Ci il Case ?uestioned anot+e" boa"d "esolution aut+o"iHin* t+e t"ans%e" o% co",o"ate "eco"ds, and anot+e" SEC7SICD Case /(o- 5>4:0 ?uestioned t+e le*ality o% t+e 11 .e.be"s o% t+e LCP Boa"d- 'lso, in anot+e" SEC Case /(o- 5>>=0, a .otion !as .ade to a,,oint a .ana*e.ent co..ittee&+is .otion !as denied since t+e sa.e is an incident o% SEC Case 5>F$'%te" +ea"in* in SEC Case 5>F$, t+e SEC7SICD o"de"ed t+e c"eation o% a .ana*e.ent co..ittee and decla"ed all boa"d "esolutions ,assed by t+e LCP boa"d oid ab initio&+e C', +o!e e", "uled t+at t+e 'o7's *"ou, !e"e *uilty o% %o"u. s+o,,in*ISSUE2 .hether the Ao2As grou% is guilty of forum sho%%ing NO2 &+e si8 *"ounds o"i*inally "elied u,on by t+e 'o7's *"ou, in SEC Case 5>F$ a"e enti"ely di%%e"ent %"o. t+e causes o% action in t+e (RLC, Ci il, and t+e t!o ot+e" SEC cases- It is t"ue t+at t+e causes o% action in t+e latte" cases !e"e included as additional *"ounds in Case 5>F$ %o" t+e a,,oint.ent o% ,"o,e"ties and assets o% LCP !+ic+ .ay +a e co.e into t+ei" ,ossession du"in* t+ei" incu.bency as o%%ice"s andIo" di"ecto"s o% LCP- Bo!e e", t+e c"eation o% a .ana*e.ent co..ittee and t+e ,"aye" %o" accountin* could not +a e been as6ed %o" in t+e labo" and %o"cible ent"y cases-

's "e*a"ds t+e ot+e" SEC Cases, t+ou*+, t+e 'o7 's *"ou, could +a e indeed ,"ayed %o" t+e c"eation o% t+e .ana*e.ent co..ittee and t+e accountin* o% t+e %unds o% t+e LCP- In %act, t+e ,etitione" in SEC7SICD Case (o5>>= +ad ,"ayed %o" t+e a,,oint.ent o% a .ana*e.ent co..ittee in a .otion !+ic+ !as subse?uent to t+e %ilin* o% SEC7SICD Case (o- 5F>$- SEC dis.issed Case (o5>>= conside"in* t+at it !as one o% t+e incidents o% Case (o- 5F>$- In e%%ect, it !as denied on t+e *"ound o% litis ,endentiaBo!e e", t+is is not a case o% !ill%ul and delibe"ate %o"u. s+o,,in* and, +ence, t+e Case (o- 5F>$ s+ould not be dis.issed- &+e "eason %o" t+is is t+e st"ict e identia"y "e?ui"e.ent needed to *"ant a ,"aye" to c"eate a .ana*e.ent co..ittee- &+e SEC +as t+e ,o!e" to c"eate a .ana*e.ent co..ittee !+en t+e"e is Gi..inent dan*e" o% dissi,ation, loss, !asta*e o" dest"uction o% assets o" ot+e" ,"o,e"ties o" ,a"aliHation o% business o,e"ationsK It s+ould be di%%icult to deduce t+e Qi..inent dan*e" o% dissi,ation, loss, !asta*e o" dest"uction o% assets o" ot+e" ,"o,e"tiesQ %"o. an alle*ation o% a sin*le act o% ,"e ious .isa,,"o,"iation o" dissi,ation on t+e ,a"t o% t+e Baton* *"ou,- It is o%ten only !+en t+e ,"e ious .isa,,"o,"iations and dissi,ations +a e beco.e e8tensi e and out o% cont"ol t+at it can be candidly said t+at t+e"e is an i..inent dan*e" o% %u"t+e" dissi,ation- &+e 'o7's *"ou, cannot be %aulted t+e"e%o"e %o" not ,"ayin* %o" t+e c"eation o% a .ana*e.ent co..ittee in t+e %i"st cou,le o% cases it %iled !it+ t+e SEC, and neit+e" can t+ey be %aulted %o" usin* t+e causes o% action in ,"e iously %iled cases to ,"o e t+ei" alle*ation o% i..inent dissi,ation- We cannot "ule out t+e ,ossibility t+at t+e dan*e" o% i..inent dissi,ation o% t+e co",o"ate assets beca.e a,,a"ent only in t+e acts o% t+e "es,ondents subse?uent to t+e %ilin* o% t+e %i"st t!o SEC cases's t+e ,"esent 3u"is,"udence no! stands, %o"u. s+o,,in* can be co..itted in t+"ee !ays2 /10 %ilin* .ulti,le cases based on t+e sa.e cause o% action and !it+ t+e sa.e ,"aye", t+e ,"e ious case not +a in* been "esol ed yet /litis ,endentia09 /40 %ilin* .ulti,le cases based on t+e sa.e cause o% action and t+e sa.e ,"aye", t+e ,"e ious case +a in* been %inally "esol ed /"es 3udicata09 and /50 %ilin* .ulti,le cases based on t+e sa.e cause o% action but !it+ di%%e"ent ,"aye"s /s,littin* o% causes o% action, !+e"e t+e *"ound %o" dis.issal is also eit+e" litis ,endentia o" "es 3udicata0- I% t+e %o"u. s+o,,in* is not conside"ed !ill%ul and delibe"ate, t+e subse?uent cases s+all be dis.issed !it+out ,"e3udice on one o% t+e t!o *"ounds .entioned abo e- Bo!e e", i% t+e %o"u. s+o,,in* is !ill%ul and delibe"ate, bot+ /o" all, i% t+e"e a"e .o"e t+an t!o0 actions s+all be dis.issed !it+ ,"e3udice,!rum s+!##in$ certificate f!r a c!r#!rati!n .hen %laintiff is a /uridical %erson1t+is .ay be si*ned by t+e ,"o,e"ly aut+o"iHed ,e"sons#AL v. FASA# (4'% SCRA 605 !006"

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER:5

Only indi iduals ested !it+ aut+o"ity by a alid boa"d "esolution .ay si*n t+e ce"ti%icate o% non7%o"u. s+o,,in* in be+al% o% a co",o"ation- In addition, ,"oo% o% said aut+o"ity .ust be attac+ed- Cailu"e to ,"o ide a ce"ti%icate o% non7%o"u. s+o,,in* is su%%icient *"ound to dis.iss t+e ,etition- Li6e!ise, t+e ,etition is sub3ect to dis.issal i% a ce"ti%ication !as sub.itted unacco.,anied by ,"oo% o% t+e si*nato"ys aut+o"ityC'C&S2 Cli*+t 'ttendants and Ste!a"ds 'ssociation o% t+e P+ili,,ines /C'S'P0 and B+a*!ani %iled a co.,laint %o" un%ai" labo" ,"actice, ille*al sus,ension and ille*al dis.issal a*ainst P'L and so.e o% its o%%ice"s be%o"e t+e (LRC Labo" '"bite" &+e Labo" '"bite" u,+eld C'S'P and B+a*!ani and, o"de"ed P'L to ,ay t+e. da.a*es&+e (LRC .odi%ied t+e decision, settin* aside t+e %indin* t+at P'L !as *uilty o% un%ai" labo" ,"actice, but a%%i".in* t+e "est o% t+e decisionP'L %iled a ,etition %o" ce"tio"a"i !it+ t+e C', acco.,anied by a Ce"ti%ication o% (on7Co"u. S+o,,in* e8ecuted by Cesa" La.be"te and Susan Del Ca".en, VP Bu.an Resou"ces and 'sst- VP Cabin Se" ices o% P'L, "es,ecti ely, !+o a"e not ,a"ties to t+e case- &+e ce"ti%ication !as !it+out ,"oo% t+at t+e t!o a%%iants +ad aut+o"ity to si*n in be+al% o% ,etitione"s- &+e C' dis.issed t+e case %o" %ailu"e to s+o! t+e a%%iants aut+o"ity to si*n %o" P'L and %o" %ailu"e o% t+e ot+e" ,etitione"s to 3oin in t+e e8ecution o% t+e ce"ti%ication- ' .otion %o" "econside"ation !as %iled !it+ a Sec"eta"ys Ce"ti%icate attac+ed e idencin* t+at a%%iants La.be"te and Del Ca".en +a e been aut+o"iHed by boa"d "esolution to initiate andIo" cause to be %iled on be+al% o% P'L ,etitions and ,leadin*s in all labo"7"elated cases' ,e"usal o% t+e Sec"eta"ys Ce"ti%icate sub.itted "e eals t+at t+e aut+o"ity to cause t+e %ilin* o% t+e ,etition !as *"anted on Ceb"ua"y 1>, 4DDD- &+e ,etition, on t+e ot+e" +and, !as %iled on Janua"y 4:, 4DDD and !as dis.issed by t+e C' on Janua"y 51, 4DDD's to t+e ot+e" ,etitione"s, it !as a"*ued t+at t+ey a"e .e"e no.inal ,a"ties so t+at t+ei" %ailu"e to e8ecute t+e ce"ti%ication does not 3usti%y dis.issal o% t+e ,etition- C' denied t+e .otionISSUE2 .hether the certification of non2forum sho%%ing was %ro%erly e,ecuted NO2 &+e ce"ti%ication o% non7%o"u. s+o,,in* attac+ed !as !it+out ,"oo% o% aut+o"ity to si*n- W+en a .otion %o" "econside"ation !as %iled, a Sec"eta"ys Ce"ti%icate !as sub.itted as ,"oo% t+at t+e boa"d o% di"ecto"s o% P'L +ad aut+o"iHed t+e t!o to e8ecute t+e ce"ti%icate- (onet+eless, t+e Cou"t %inds t+at t+is belated sub.ission is an insu%%icient co.,liance !it+ t+e ce"ti%ication "e?ui"e.ent&+e "e?ui"ed ce"ti%ication .ust be alid at t+e ti.e o% %ilin* o% t+e ,etition- 'n in alid ce"ti%icate cannot be "e.edied by t+e subse?uent sub.ission o% a Sec"eta"ys Ce"ti%icate t+at ests aut+o"ity only a%te" t+e ,etition +ad been %iled- 't t+e ti.e t+e ce"ti%ication !as si*ned, La.be"te and Del Ca".en !e"e not duly aut+o"iHed and, conse?uently, t+ei" si*nin* and attestations !e"e not in "e,"esentation o% P'L- &+is e%%ecti ely t"anslates to a
)E(DE@, IV'( VIA&OR /4D, 150

,etition t+at !as %iled !it+out a ce"ti%ication at all as none !as issued by P'L, t+e ,"inci,al ,a"ty to t+e caseRule =>, Section 1, in "elation to Rule :=, Section 5 o% t+e Rules o% Cou"t "e?ui"es t+e ce"ti%ication o% non7%o"u. s+o,,in* to be e8ecuted by t+e co""es,ondin* ,etitione" o" ,etitione"s- 's no distinction is .ade as to !+ic+ ,a"ty .ust e8ecute t+e ce"ti%icate, t+is "e?ui"e.ent is .ade to a,,ly to bot+ natu"al and 3u"idical entitiesW+en t+e ,etitione" is a co",o"ation, t+e ce"ti%ication s+ould be e8ecuted by a natu"al ,e"son- Cu"t+e".o"e, not 3ust any ,e"son can be called u,on to e8ecute t+e ce"ti%ication, alt+ou*+ suc+ a ,e"son .ay +a e ,e"sonal 6no!led*e o% t+e %acts to be attested to&+e ,o!e" o% a co",o"ation to sue in any cou"t is *ene"ally lod*ed !it+ t+e boa"d o% di"ecto"s, !+o can dele*ate t+e ,+ysical acts needed to sue, !+ic+ .ay be ,e"%o".ed only by natu"al ,e"sons, to its atto"neys7in7%act by a boa"d "esolution, i% not al"eady aut+o"iHed unde" t+e co",o"ate by7la!s- &+us, only indi iduals ested !it+ aut+o"ity by a alid boa"d "esolution .ay si*n t+e ce"ti%icate o% non7%o"u. s+o,,in* in be+al% o% a co",o"ation- In addition, ,"oo% o% said aut+o"ity .ust be attac+ed- Cailu"e to ,"o ide a ce"ti%icate o% non7%o"u. s+o,,in* is su%%icient *"ound to dis.iss t+e ,etitionLi6e!ise, t+e ,etition is sub3ect to dis.issal i% a ce"ti%ication !as sub.itted unacco.,anied by ,"oo% o% t+e si*nato"ys aut+o"ity,i in$ and service defined Filing1t+e act o% ,"esentin* t+e ,leadin* o" ot+e" ,a,e" to t+e cle"6 o% cou"t $ervice1t+e act o% ,"o idin* a ,a"ty !it+ a co,y o% t+e ,leadin* o" ,a,e" conce"ned I% any ,a"ty +as a,,ea"ed by counsel, se" ice u,on +i. s+all be .ade u,on +is counsel or one o% t+e., unless se" ice u,on t+e ,a"ty +i.sel% is o"de"ed by t+e cou"t W+e"e one counsel a,,ea"s for several %arties, +e s+all only be entitled to one co,y o% any ,a,e" se" ed u,on +i. by t+e o,,osite side- /Sec- 4, Rule 50 C!vera$e &+is Rule *o e"ns /10 t+e %ilin* o% all ,leadin*s and ot+e" ,a,e"s, and /40 t+e se" ice t+e"eo% EVCEP& t+ose %o" !+ic+ a di%%e"ent .ode o% se" ice is ,"esc"ibed /Sec- 1, Rule 150 Pa%ers re3uired to be filed and served1 /10 3ud*.ents, /40 "esolutions, /50 o"de"s, /:0 ,leadin* subse?uent to t+e co.,laint, />0 !"itten .otions, /=0 notices, /$0 a,,ea"ances, /F0 de.ands, /#0 o%%e"s o% 3ud*.ent, or /1D0 si.ila" ,a,e"s s+all be %iled !it+ t+e cou"t, and se" ed u,on t+e ,a"ties a%%ected

CIVIL PROCEDURE REVIEWER::

/Sec- :, Rule 150 -!des !f service &+e"e a"e t!o .odes o% se" ice o% ,leadin*s, .otions, o"de"s, 3ud*.ents and ot+e" ,a,e"s2 /10 ,e"sonally, or /40 by .ail In $enera " fi in$ &+e %ilin* o% ,leadin*s, a,,ea"ances, .otions, notices, o"de"s, 3ud*.ents and all ot+e" ,a,e"s s+all be .ade (:" PersonallyBy ,"esentin* t+e o"i*inal co,ies t+e"eo%, ,lainly indicated as suc+, ,e"sonally to t+e cle"6 o% cou"t t+e cle"6 o% cou"t s+all endo"se on t+e ,leadin* t+e date and +ou" o% %ilin*(>" 5y mailBy sendin* t+e. by "e*iste"ed .ail &+e date o% t+e .ailin* o% .otions, ,leadin*s, o" any ot+e" ,a,e"s o" ,ay.ents o" de,osits, as s+o!n by t+e ,ost o%%ice sta., on t+e en elo,e o" t+e "e*ist"y "ecei,t, s+all be conside"ed as t+e date o% t+ei" %ilin*, ,ay.ent, o" de,osit in cou"t- &+e en elo,e s+all be attac+ed to t+e "eco"d o% t+e case- /Sec5, Rule 150 In $enera " service Se" ice o% ,leadin*s, .otions, notices, o"de"s, 3ud*.ents and ot+e" ,a,e"s s+all be .ade eit+e" /10 ,e"sonally or /40 by .ail- /Sec- >, Rule 150 $ervice of /udgments, final orders, or resolutions#Jud*.ents, %inal o"de"s o" "esolutions s+all be se" ed /10 ,e"sonally /40 by registered .ail, or /50 by ,ublication, at t+e e8,ense o% t+e ,"e ailin* ,a"ty, in cases !+e"e a ,a"ty !as a- su..oned by ,ublication, and b- +as %ailed to a,,ea" in t+e action- /Sec#, Rule 150 Pers!na Pe"sonal se" ice o% t+e ,a,e"s .ay be .ade /10 by deli e"in* ,e"sonally a co,y to t+e ,a"ty o" +is counsel, /40 by lea in* it in +is o%%ice !it+ +is cle"6 o" !it+ a ,e"son +a in* c+a"*e t+e"eo%, or /50 by lea in* t+e co,y, bet!een Fa. and =,., at t+e ,a"tys o" counsels "esidence, i% 6no!n, !it+ a ,e"son o% su%%icient a*e and disc"etion t+en "esidin* t+e"ein, in cases !+e"e a- no ,e"son is %ound in +is o%%ice, b- +is o%%ice is not 6no!n, or c- +e +as no o%%ice, t+en- /Sec- =, Rule 150 -ai Se" ice by registered mail s+all be .ade /10 by de,ositin* t+e co,y in t+e o%%ice, /40 in a sealed en elo,e,
)E(DE@, IV'( VIA&OR /4D, 150

/50 ,lainly add"essed to t+e ,a"ty o" +is counsel at +is o%%ice, i% 6no!n, ot+e"!ise at +is "esidence, i% 6no!n, /:0 !it+ ,osta*e %ully ,"e,aid, and />0 !it+ inst"uctions to t+e ,ost.aste" to "etu"n t+e .ail to t+e sende" a%te" ten /1D0 days i% undeli e"edSe" ice by ordinary mail .ay be done i% no "e*ist"y se" ice is a ailable in t+e locality o% eit+e" t+e sende" o" t+e add"essee /Sec- $, Rule 150 Substituted service Substituted se" ice is .ade i% se" ice o% ,leadin*s, .otions, notices, "esolutions, o"de"s and ot+e" ,a,e"s cannot be .ade unde" t+e two %receding sections, t+e o%%ice and ,lace o% "esidence o% t+e ,a"ty o" +is counsel bein* un6no!nSubstituted se" ice is done /10 by deli e"in* t+e co,y to t+e cle"6 o% cou"t, !it+ ,"oo% o% %ailu"e o% bot+ ,e"sonal se" ice and /40 se" ice by .ail&+e se" ice is co.,lete at t+e time of such delivery- /SecF, Rule 150 Pri!rit. W+ene e" ,"acticable, t+e se" ice and %ilin* o% ,leadin*s and ot+e" ,a,e"s s+all be done ,e"sonally ' "eso"t to ot+e" .odes .ust be acco.,anied by a written e,%lanation !+y t+e se" ice o" %ilin* !as not done ,e"sonally +,ce%tion* Pa,e"s e.anatin* %"o. t+e cou"t ' violation o% t+is Rule .ay be cause to conside" t+e ,a,e" as not %iled- /Sec- 11, Rule 150 U#!n #art. in defau t &Sec2 7" Ru e <( ' de%endin* ,a"ty s+all be decla"ed in de%ault !+en /10 )round* Be %ails to ans!e" !it+in t+e ti.e allo!ed t+e"e%o", t+e cou"t s+all, /40 &+e clai.in* ,a"ty %iles a .otion to decla"e t+e de%endin* ,a"ty in de%ault, %u"nis+in* ,"oo% o% %ailu"e to ans!e" /50 Said ,a"ty *i es notice o% suc+ .otion to t+e de%endin* ,a"ty, &+e cou"t s+all ,"oceed to "ende" 3ud*.ent *"antin* t+e clai.ant suc+ "elie% as +is ,leadin* .ay !a""ant, unless t+e cou"t in its disc"etion "e?ui"es t+e clai.ant to sub.it e idence Suc+ "ece,tion o% e idence .ay be dele*ated to t+e cle"6 o% cou"t- /1a, R1F0 /a0 +ffect of order of default#- ' ,a"ty in de%ault s+all be entitled to notice o% subse?uent ,"oceedin*s but (O& to ta6e ,a"t in t+e t"ial/b0 !elief from order of default#-' ,a"ty decla"ed in de%ault .ay at any ti.e a%te" notice t+e"eo% and be%o"e 3ud*.ent %ile a .otion unde" oat+ to set aside t+e o"de" o%

CIVIL PROCEDURE REVIEWER:>

de%ault u,on ,"o,e" s+o!in* t+at +is %ailu"e to ans!e" !as due to %"aud, accident, .ista6e o" e8cusable ne*li*ence and t+at +e +as a .e"ito"ious de%ense- In suc+ case, t+e o"de" o% de%ault .ay be set aside on suc+ te".s and conditions as t+e 3ud*e .ay i.,ose in t+e inte"est o% 3ustice/c0 +ffect of %artial default#-W+en a ,leadin* asse"tin* a clai. states a co..on cause o% action a*ainst se e"al de%endin* ,a"ties, so.e o% !+o. ans!e" and t+e ot+e"s %ail to do so, t+e cou"t s+all t"y t+e case a*ainst all u,on t+e ans!e"s t+us %iled and "ende" 3ud*.ent u,on t+e e idence ,"esented/d0 +,tent of relief to be awarded#- ' 3ud*.ent "ende"ed a*ainst a ,a"ty in de%ault s+all not e8ceed t+e a.ount o" be di%%e"ent in 6ind %"o. t+at ,"ayed %o" no" a!a"d unli?uidated da.a*es/e0 .here no defaults allowed#-I% t+e de%endin* ,a"ty in an action %o" annul.ent o" decla"ation o% nullity o% .a""ia*e o" %o" le*al se,a"ation %ails to ans!e", t+e cou"t s+all o"de" t+e ,"osecutin* atto"ney to in esti*ate !+et+e" o" not a collusion bet!een t+e ,a"ties e8ists, and i% t+e"e is no collusion, to inte" ene %o" t+e State in o"de" to see to it t+at t+e e idence sub.itted is not %ab"icated- /Sec- 5, Rule #0 C!m# eti!n !f service Personal service1 u,on actual deli e"y $ervice by ordinary mail1 u,on t+e e8,i"ation o% ten /1D0 days a%te" .ailin*, unless t+e cou"t ot+e"!ise ,"o ides$ervice by registered mail1 u,on actual "ecei,t by t+e add"essee, or a%te" %i e />0 days %"o. t+e date +e "ecei ed t+e %i"st notice o% t+e ,ost.aste", !+ic+e e" date is ea"lie"- /Sec- 1D, Rule 150 Pr!!f !f fi in$ and service &+e %ilin* o% a ,leadin* o" ,a,e" s+all be ,"o ed by Personal service /10 its e8istence in t+e "eco"d o% t+e case9 /40 t+e !"itten o" sta.,ed ac6no!led*.ent o% its %ilin* by t+e cle"6 o% cou"t on a co,y o% t+e sa.e, i% it is not in t+e "eco"d, but is clai.ed to +a e been %iled ,e"sonally9 !egistered mail /10 by t+e "e*ist"y "ecei,t and /40 by t+e a%%ida it o% t+e ,e"son !+o did t+e .ailin*, containin* a- a %ull state.ent o% t+e date and ,lace o% de,ositin* t+e .ail in t+e ,ost o%%ice in a sealed en elo,e add"essed to t+e cou"t, b- !it+ ,osta*e %ully ,"e,aid, and c- !it+ inst"uctions to t+e ,ost.aste" to "etu"n t+e .ail to t+e sende" a%te" ten
)E(DE@, IV'( VIA&OR /4D, 150

/1D0 days i% not deli e"ed- /Sec- 14, Rule 150 &+e se" ice o% a ,leadin* o" ,a,e" s+all be ,"o ed by Personal service /10 !"itten ad.ission o% t+e ,a"ty se" ed, /40 t+e o%%icial "etu"n o% t+e se" e", or /50 t+e a%%ida it o% t+e ,a"ty se" in*, containin* a %ull state.ent o% t+e date, ,lace and .anne" o% se" iceCrdinary mail /10 a%%ida it o% t+e ,e"son .ailin* o% %acts s+o!in* co.,liance !it+ section $ o% t+is Rule Se" ice by ordinary mail .ay be done i% no "e*ist"y se" ice is a ailable in t+e locality o% eit+e" t+e sende" o" t+e add"essee /Sec- $, Rule 150 !egistered Mail/10 suc+ a%%ida it and /40 t+e "e*ist"y "ecei,t issued by t+e .ailin* o%%ice (O&E2 &+e "e*ist"y "etu"n ca"d s+all be %iled i..ediately u,on its "ecei,t by t+e sende", or in lieu t+e"eo% o% t+e unclai.ed lette" to*et+e" !it+ t+e ce"ti%ied o" s!o"n co,y o% t+e notice *i en by t+e ,ost.aste" to t+e add"essee- /Sec- 15, Rule 150

L4s pendens ' notice of lis %endens .ay be "eco"ded in t+e o%%ice o% t+e "e*ist"y o% deeds o% t+e ,"o ince in !+ic+ t+e ,"o,e"ty is situated /10 by t+e ,lainti%% and t+e de%endant9 /40 in an action a%%ectin* t+e title o" t+e "i*+t o% ,ossession o% "eal ,"o,e"ty, /50 !+en a%%i".ati e "elie% is clai.ed in t+e ans!e", Said notice s+all contain /10 t+e na.es o% t+e ,a"ties /40 t+e ob3ect o% t+e action o" de%ense, and /50 a desc"i,tion o% t+e ,"o,e"ty in t+at ,"o ince a%%ected t+e"ebyE%%ects /10 Constructive notice to a ,u"c+ase" o" encu.b"ance" %"o. t+e ti.e o% %ilin* suc+ notice %o" "eco"d/40 Is notice only a*ainst t+e ,a"ties desi*nated by t+ei" "eal na.esCancellation &+e notice o% lis %endens +e"einabo e .entioned .ay be cancelled /10 only u,on o"de" o% t+e cou"t, /40 a%te" ,"o,e" s+o!in* t+at a- t+e notice is %o" t+e ,u",ose o% .olestin* t+e ad e"se ,a"ty, or

CIVIL PROCEDURE REVIEWER:=

b-

t+at it is not necessa"y to ,"otect t+e "i*+ts o% t+e ,a"ty !+o caused it to be "eco"ded- /Sec- 1:, Rule 150

A-ENDED AND SUPPLE-EN1AL PLEADIN%S Amendments In $enera Pleadin*s .ay be a.ended /10 by addin* o" st"i6in* out an alle*ation or t+e na.e o% any ,a"ty, o" /40 by co""ectin* a .ista6e in t+e na.e o% a ,a"ty o" a .ista6en o" inade?uate alle*ation o" desc"i,tion in any ot+e" "es,ect Pur%ose2 So t+at t+e actual .e"its o% t+e cont"o e"sy .ay s,eedily be dete".ined, !it+out "e*a"d to tec+nicalities, and in t+e .ost e8,editious and ine8,ensi e .anne"Libera it. BARFEL DE*1T. COR# v. CA (!!& SCRA !6)" 's a *ene"al ,olicy, libe"ality in allo!in* a.end.ents is *"eatest in t+e ea"ly sta*es o% a la! suit, dec"eases as it ,"o*"esses and c+an*es at ti.es to a st"ictness a.ountin* to a ,"o+ibition- &+is is %u"t+e" "est"icted by t+e condition t+at t+e a.end.ent s+ould not ,"e3udice t+e ad e"se ,a"ty o" ,lace +i. at a disad anta*eC'C&S2 Ba"%el sold to Re*inas t!o ,a"cels o% land !it+ t!o +ouses e"ected t+e"eon in 'yala 'laban*, sti,ulatin* t+at t+e Ba"%el !ill a,,ly t+e ,ay.ent o% t+e cas+ ,o"tion o% t+e ,u"c+ase ,"ice to t+e "e.o al o% any and all liens on t+e ,"o,e"ties- &+e cont"act stated t+at a,a"t %"o. a BPI .o"t*a*e and t+e Deed o% Rest"ictions annotated at t+e bac6 o% t+e title, t+e sub3ect ,"o,e"ty !as %"ee %"o. all liens- Re*inas .ade t+e do!n,ay.ent u,on si*nin* t+e a*"ee.entIt !as late" disco e"ed t+at t+e"e !as a,,a"ently a second .o"t*a*e !it+ t+e PISOICent"al Ban6- U,on t+is in%o".ation, Victo" Ba""ios assu"ed t+e buye" t+at t+e second .o"t*a*e +as been "educed and t+at +e !ill sub.it t+e necessa"y docu.ents to su,,o"t a le*al and alid acce,table a""an*e.ent %o" t+e "elease o% suc+ .o"t*a*e&+e"ea%te", t+e PSB *"anted Re*inas loan, !+ic+ a*ain sub3ected a%o"esaid ,"o,e"ties to a .o"t*a*e- PSB no! ,"o.ises to ,ay di"ectly to BPI %"o. t+e ,"oceeds o% t+e loan and ,ay t+e selle"s t+e ,u"c+ase ,"ice- &+e latte" con%o".ed to t+e a""an*e.entEi en t+e ,"io" assu"ance o% a !o"6able a""an*e.ent "e*a"din* t+e Cent"al Ban6 .o"t*a*e, t+e buye"s no! .ani%ested its !illin*ness to ,ay P4) a+ead o% t+e ,"oceeds %o" t+e PSB loan- (ot!it+standin* suc+ ne*otiations +o!e e", t+e selle"s +e"e a"e in *"oss and
)E(DE@, IV'( VIA&OR /4D, 150

e ident bad %ait+ and .alicious b"eac+ o% cont"act %o" t+ey +a e %ailed to co.,ly !it+ t+e obli*ation to "elease t+e second .o"t*a*e- BPI %u"t+e" a e""ed t+at t+e selle"s actually disaut+o"iHed t+e. to consu..ate t+e t"ansaction des,ite ,"e ious a""an*e.entsRe*inas and @a"a*oHa %iled a co.,laint %o" s,eci%ic ,e"%o".ance and da.a*es a*ainst Ba"%el and t+e S,ouses Ba""ios- P"e7t"ial !as conducted and bot+ ,a"ties ,"esented e idenceDu"in* Ba"%els ,"esentation, Re*inas %iled a .otion %o" lea e to %ile an a.ended co.,laint and .otion to ad.it t+e sa.e- &+e a.end.ent sou*+t to i.,lead PISO ban6 as additional ,a"ty de%endant and co.,el it to acce,t ,ay.ent o% t+e e8istin* second .o"t*a*e %"o. Re*inas, since no co.,lete "elie% can be +ad unless t+e second .o"t*a*e is "eleasedBa"%el o,,osed- &+e R&C ad.itted t+e a.ended co.,laint- &+e C' sustained t+e lo!e" cou"ts o"de" sayin* t+at t+e a.end.ent !as .ade !it+out intent to delay t+e action- &+e essence o% libe"al const"uction !as acco"ded by t+e cou"tsISSUE2 .hether the amended com%laint should be allowed NO2 &+e a.end.ent !as .ade !it+ intent to delay t+e action and substantially alte"s t+e cause o% action o% Re*inas and t+e de%ense o% Ba"%el- '%te" t+e case is set %o" +ea"in*, substantial a.end.ents .ay be .ade only u,on lea e o% cou"t- Suc+ lea e .ay be "e%used i% it a,,ea"s t+at t+e .otion !as .ade !it+ intent to delay t+e action o" t+at t+e cause o% action o" de%ense is substantially alte"ed- /Sec- 5, Rule 1D0 &+e a.end.ent sou*+t by ,"i ate "es,ondents, !+ic+ is to include a ne! ,a"ty de%endant at a late sta*e in t+e ,"oceedin*, is not a %o".al but a substantial oneP"i ate "es,ondents !ill +a e to ,"esent additional e idence on t+e PISO second .o"t*a*e- &+e e%%ect !ould be to sta"t t"ial ane! !it+ t+e ,a"ties "ecastin* t+ei" t+eo"ies o% t+e case- &+e co""ect a.ount o% t+e second .o"t*a*e o!ed by ,etitione"s to PISO ban6 /a,,a"ently a cont"o e"ted ,oint0, !ould +a e to be liti*ated and t+is could be ti.e consu.in*'s a *ene"al ,olicy, libe"ality in allo!in* a.end.ents is *"eatest in t+e ea"ly sta*es o% a la! suit, dec"eases as it ,"o*"esses and c+an*es at ti.es to a st"ictness a.ountin* to a ,"o+ibition- &+is is %u"t+e" "est"icted by t+e condition t+at t+e a.end.ent s+ould not ,"e3udice t+e ad e"se ,a"ty o" ,lace +i. at a disad anta*e,!rm W+en any ,leadin* is a.ended, t+e %ollo!in* s+all be %iled2 /10 a ne! co,y o% t+e enti"e ,leadin*, /40 inco",o"atin* t+e a.end.ents, !+ic+ s+all be indicated by a,,"o,"iate .a"6s,- /Sec- $, Rule 150 Effect 'n a.ended ,leadin* su,e"sedes t+e ,leadin* it a.ends Bo!e e", ad.issions in su,e"seded ,leadin*s may be received in evidence a*ainst t+e ,leade"9 and

CIVIL PROCEDURE REVIEWER:$

Claims or defenses alle*ed t+e"ein not incor%orated in t+e a.ended ,leadin* s+all be dee.ed !ai ed- /Sec- F, Rule 1D0

>inds ,!rma amendment ' de%ect in t+e desi*nation o% t+e ,a"ties and ot+e" clea"ly cle"ical o" ty,o*"a,+ical e""o"s .ay be su..a"ily co""ected by t+e cou"t at any sta*e o% t+e action, at its initiati e o" on .otion, ,"o ided so no ,"e3udice is caused t+e"eby to t+e ad e"se ,a"ty- /Sec- :, Rule 1D0 Substantia amendments -atter !f ri$+t ' ,a"ty .ay a.end +is ,leadin* once as a .atte" o% "i*+t at any ti.e before a res%onsive %leading is se" ed or, in t+e case o% a "e,ly, at any ti.e !it+in ten /1D0 days a%te" it is se" ed- /Sec- 4, Rule 1D0 -atter !f discreti!n E8ce,t as ,"o ided in t+e ne8t ,"ecedin* section, $ubstantial amendments .ay be .ade only u,on lea e o% cou"t But suc+ leave may be refused i% it a,,ea"s to t+e cou"t t+at t+e .otion !as .ade !it+ intent to delay Substantial a.end.ents .ay be .ade only /10 u,on .otion %iled in cou"t, and /40 a%te" notice to t+e ad e"se ,a"ty, and an o,,o"tunity to be +ea"d- /Sec- 5, Rule 1D0 1! c!nf!rm t! evidence Amendment to conform to evidence Issues not "aised by ,leadin*s .ay be dee.ed as i% t+ey !e"e "aised2 /10 W+en issues a"e not "aised by t+e ,leadin*s, and /40 &+ey a"e t"ied !it+ t+e e8,"ess o" i.,lied consent o% t+e ,a"ties Suc+ a.end.ent o% t+e ,leadin*s as .ay be necessa"y to cause t+e. to con%o". to t+e e idence and to "aise t+ese issues .ay be .ade /10 u,on .otion o% any ,a"ty /40 at any ti.e, e en a%te" 3ud*.ent9 Failure to amend Cailu"e to a.end does not a%%ect t+e "esult o% t+e t"ial o% t+ese issuesAmendment to authorize %resentation of evidence &+is a.end.ent .ay be .ade i% e idence is ob3ected to at t+e t"ial on t+e *"ound t+at it is not !it+in t+e issues .ade by t+e ,leadin*s,

t+e cou"t .ay allo! t+e ,leadin*s to be a.ended and s+all do so !it+ libe"ality i% t+e ,"esentation o% t+e .e"its o% t+e action and t+e ends o% substantial 3ustice !ill be se" ed t+e"eby- &+e cou"t .ay *"ant a continuance to enable t+e a.end.ent to be .ade- /Sec- >, Rule 1D0

S$AGMAN HOTELS 5 TRA*EL INC. v. CA (!00)" &+e cu"in* e%%ect unde" Section > o% Rule 1D o% t+e 1##$ Rules o% Ci il P"ocedu"e is a,,licable only i% a cause o% action e8ists at t+e ti.e t+e co.,laint is %iled, but t+e co.,laint is de%ecti e %o" %ailu"e to alle*e t+e essential %acts- ' co.,laint !+ose cause o% action +as not yet acc"ued cannot be cu"ed o" "e.edied by an a.ended o" su,,le.ental ,leadin* alle*in* t+e e8istence o" acc"ual o% a cause o% action !+ile t+e case is ,endin*C'C&S2 S!a*.an Botels and &"a el, Inc-, obtained %"o. "es,ondent (eal B- C+"istian loans e idenced by t+"ee ,"o.isso"y notes dated 1##$, eac+ in t+e a.ount o% U>D,DDD ,ayable a%te" t+"ee yea"s /4DD0 %"o. its date !it+ a 1>L inte"est ,e" annu. ,ayable e e"y t+"ee .ont+s- Late" on, C+"istian in%o".ed t+e S!a*.an t+at +e !as te".inatin* t+e loans and de.anded %"o. t+e latte" ,ay.ent in t+e total a.ount o% U1>D,DDD ,lus t+e un,aid inte"ests o% U15,>DDIn 1###, C+"istian %iled a co.,laint %o" t+e un,aid loans, alle*in* t+at ,etitione", instead o% ,ayin* t+e 1>L .ont+ly inte"est, sta"ted ,ayin* only =L- S!a*.an %iled an 'ns!e", "aisin* as de%ense t+e lac6 o% cause o% action o% t+e ,"inci,al obli*ations because t+e t+"ee ,"o.isso"y notes !e"e not yet due and de.andable&+e t"ial cou"t "uled t+at t+e %i"st t!o ,"o.isso"y notes !e"e al"eady due and de.andable and o"de"ed S!a*.an to ,ay t+e a.ount o% t+e c+ec6s ,lus =L inte"estIt "uled t+at alt+ou*+ at t+e ti.e o% t+e co.,laint, t+e notes !e"e not yet due and de.andable, it !as cu"ed !+en t+ey beca.e due du"in* t+e t"ialISSUE2 .hether or not lac6 of cause of action may be cured by evidence %resented during the trial and amendments to conform to the evidence NO2 '.end.ents o% ,leadin*s a"e allo!ed unde" Rule 1D in o"de" t+at t+e actual .e"its o% a case .ay be dete".ined in t+e .ost e8,editious and ine8,ensi e .anne" !it+out "e*a"d to tec+nicalities, and t+at all ot+e" .atte"s included in t+e case .ay be dete".ined in a sin*le ,"oceedin*, t+e"eby a oidin* .ulti,licity o% suits- Section > t+e"eo% a,,lies to situations !+e"ein e idence not !it+in t+e issues "aised in t+e ,leadin*s is ,"esented by t+e ,a"ties du"in* t+e t"ial, and to con%o". to suc+ e idence t+e ,leadin*s a"e subse?uently a.ended on .otion o% a ,a"ty&+e cu"in* e%%ect unde" Section > is a,,licable only i% a cause o% action in %act e8ists at t+e ti.e t+e co.,laint is %iled, but t+e co.,laint is de%ecti e %o" %ailu"e to alle*e t+e essential %actsIt t+us %ollo!s t+at a co.,laint !+ose cause o% action +as not yet acc"ued cannot be cu"ed o" "e.edied by

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER:F

an a.ended o" su,,le.ental ,leadin* alle*in* t+e e8istence o" acc"ual o% a cause o% action !+ile t+e case is ,endin*- Suc+ an action is ,"e.atu"ely b"ou*+t and is, t+e"e%o"e, a *"oundless suit, !+ic+ s+ould be dis.issed by t+e cou"t u,on ,"o,e" .otion seasonably %iled by t+e de%endant- &+e unde"lyin* "eason %o" t+is "ule is t+at a ,e"son s+ould not be su..oned be%o"e t+e ,ublic t"ibunals to ans!e" %o" co.,laints !+ic+ a"e i..atu"eRemedies Peri!ds t! answer Amendments Amendment as a matter of right1 &+e de%endant s+all ans!e" t+e sa.e !it+in %i%teen /1>0 days a%te" bein* se" ed !it+ a co,y t+e"eo%Amendment not a matter of right1 &+e de%endant s+all ans!e" !it+in ten /1D0 days %"o. notice o% t+e O"de" ad.ittin* t+e sa.e 'n ans!e" ea"lie" %iled .ay se" e as t+e ans!e" to t+e a.ended co.,laint, i% no ne! ans!e" is %iledA%%licability &+is Rule s+all a,,ly to t+e ans!e" to /10 an a.ended counte"clai., /40 a.ended c"oss7clai., /50 a.ended t+i"d /%ou"t+, etc-01 ,a"ty co.,laint, and /:0 a.ended co.,laint7in7inte" ention- /Sec- 5, Rule 110 Su## ementa c!m# aint &+is .ay be ans!e"ed !it+in ten /1D0 days %"o. notice o% t+e o"de" ad.ittin* t+e sa.e, unless a di%%e"ent ,e"iod is %i8ed by t+e cou"t 1f no new or su%%lemental answer is filed1 &+e ans!e" to t+e co.,laint s+all se" e as t+e ans!e" to t+e su,,le.ental co.,laint- /Sec- $, Rule 110 Su## ementa # eadin$s ' su,,le.ental ,leadin* settin* %o"t+ t"ansactions, occu""ences o" e ents !+ic+ +a e +a,,ened since t+e date o% t+e ,leadin* sou*+t to be su,,le.ented .ay be ,e".itted /10 u,on .otion o% a ,a"ty /40 "easonable notice and /50 u,on suc+ te".s as a"e 3ust Period to answer &+e ad e"se ,a"ty .ay ,lead t+e"eto !it+in ten /1D0 days %"o. notice o% t+e o"de" ad.ittin* t+e su,,le.ental ,leadin*- /Sec- =, Rule 110 Distin$uis+ed fr!m amended # eadin$s SHOEMART INC. v. CA ((%0 SCRA ()% (%%0"
)E(DE@, IV'( VIA&OR /4D, 150

' su,,le.ental ,leadin* su,,lies de%iciencies in aid o% an o"i*inal ,leadin* not to enti"ely substitute t+e latte"C'C&S2 'nson E.,o"iu. Co",- /'nson0 leased %"o. S+oe.a"t ,o"tion o% a buildin* %o" t!o yea"s- &+e lease sti,ulated t+at i% a%te" te".ination o% t+e lease, S+oe.a"t ,e".its 'nson to "e.ain, t+e lease s+all be unde"stood to be on a .ont+ to .ont+ basis in t+e absence o% a cont"a"y !"itten a*"ee.ent'nson "e.ained in ,ossession a%te" t+e t!o7yea" ,e"iod but on an inc"eased "ental- Cou" yea"s late", S+oe.a"t te".inated t+e lease and *a e notice to 'nson to acate, !+ic+ t+e latte" "e%used- ' co.,laint %o" e3ect.ent !as %iled a*ainst +i. !it+ t+e )&C- S+oe.a"t as6ed %o", and !as *"anted, lea e to %ile su,,le.ental co.,laint !+ic+ alle*ed t+at t+e "ental o% all tenants o% t+e ,"e.ises +ad been inc"eased to P:>,1:4-DD, !+ic+ 'nson "e%used to ,ay- 'nson alle*ed t+at S+oe.a"ts clai. %o" inc"eased "entals +as been ba""ed- )&C "uled %o" 'nson&+e R&C "e e"sed t+e 3ud*.ent and o"de"ed 'nson to acate t+e ,"e.ises and to ,ay P5:,=44 and P:>,1:4 "es,ecti ely %o" t+e t!o lease a*"ee.ents, !it+ 1L inte"est %"o. Octobe" 1#$$- S+oe.a"t %iled a .otion %o" "econside"ation o% t+e a!a"d o% da.a*es, sayin* it is less t+an !+at is "eally due- R&C *"anted t+is .otionC' a%%i".ed t+e e3ect.ent o% "es,ondent but "educed t+e da.a*es a!a"ded by statin* t+at t+e 1L inte"est !ill sta"t to "un %"o. Octobe" 1#E?- P"i ate "es,ondent sou*+t t+e co""ection o% t+e cle"ical e""o" "e*a"din* date o% t+e e%%ecti ity o% t+e ,ay.ent %o" da.a*es- Said .otion !as *"anted Petitione"Ms .otion %o" "econside"ation see6in* t+e "einstate.ent o% t+e R&Cs decision !as denied- C' "uled t+at ,etitione"s clai. %o" da.a*es is li.ited to t+e P:>,1:4 alle*ed in t+e su,,le.ental co.,laintISSUE2 .hether the subse3uently amended com%laint in the case at bar renders the original com%laint abandoned or ine,istent NO2 Petitione"Ms "eco e"y is not li.ited by t+e a.ount o% P:>,1:4-DD ,"ayed %o" in t+e su,,le.ental co.,laint as inc"eased "ental- &+is is not a case o% a co.,laint subse?uently a.ended, t+e e%%ect o% !+ic+ is to "ende" t+e o"i*inal co.,laint abandoned o" ine8istent and let t+e a.end.ent ta6e %o". as t+e sole substitute u,on !+ic+ t+e case stands %o" t"ial' su,,le.ental co.,laint o" ,leadin* su,,lies de%iciencies in aid o% an o"i*inal ,leadin*, not to enti"ely substitute t+e latte"- ' ,e"usal o% t+e o"i*inal co.,laint s+o!s t+at it ,"ayed, a.on* ot+e"s, t+at t+e ,"i ate "es,ondent be o"de"ed to ,ay ,etitione" P5:,=44-DD and all ot+e" "entals and c+a"*es t+at .ay be due until "es,ondent acates t+e ,"e.ises- Petitione", t+e"e%o"e, did not %o"eclose its "i*+t to de.and inc"eased "entals t+at .ay be "eco e"ed e8,"essed in te".s o% t+e %ai" "ental alue o" t+e "easonable co.,ensation %o" t+e use and occu,ation o% t+e "eal ,"o,e"ty- Unli6e in an a.ended co.,laint, t+e o"i*inal co.,laint e8ists side by side !it+ t+e su,,le.ental co.,laint&+e su,,le.ental ,leadin* .e"ely se" ed to a e" su,e" enin* %acts !+ic+ !e"e t+en not "i,e %o" 3udicial

CIVIL PROCEDURE REVIEWER:#

"elie% !+en t+e o"i*inal ,leadin* !as %iled- Su,,le.ental ,leadin*s a"e .eant to su,,ly de%iciencies in aid o% t+e o"i*inal ,leadin* and not to dis,ense !it+ t+e latte"&+e %ailu"e o% ,etitione" to a.end its co.,laint o" %ile additional su,,le.ental ,leadin*s to alle*e subse?uent "ental inc"eases is o% no .o.entIn ie! o% t+e %ailu"e o% ,"i ate "es,ondent to ob3ect to t+e ,"esentation o% e idence s+o!in* t+at t+e"e !e"e %ou" /:0 "ental inc"eases on t+e sub3ect ,"e.ises alt+ou*+ t+"ee /50 o% said inc"eases a"e not alle*ed in t+e ,leadin*s, 3ud*.ent .ay be "ende"ed alidly as "e*a"ds t+e said inc"eases o" issues !+ic+ s+all be conside"ed as i% t+ey +a e been "aised in t+e ,leadin*s- 's %ound by t+e R&C, ,"i ate "es,ondent did not cont"o e"t t+e e idence sub.itted by ,etitione" in dete".inin* t+e %ai" "ental alue o% t+e ,"e.ises includin* t+ose i.,osed on all ot+e" tenants o% ,etitione" occu,yin* t+e )a6ati '"cade- I%, indeed, t+e "ental inc"eases !e"e unconscionable, "es,ondent s+ould +a e at least ,"esented e idence to substantiate its clai.- &+e bu"den o% ,"oo% to s+o! t+at t+e "ental de.anded is unconscionable o" e8o"bitant "ests u,on ,"i ate "es,ondent as t+e lesseeP"i ate "es,ondent %ailed to disc+a"*e its bu"den !+en it o.itted to ,"esent any e idence at all on !+at it conside"s is t+e %ai" "ental alue ot+e" t+an !+at !e"e sub.itted by ,etitione"- 's a .atte" o% %act, all t+e ot+e" tenants did not ?uestion t+e "easonableness o% t+e "ental inc"eases BILL O, PAR1ICULARSEIN1ERVEN1ION Bi !f #articu ars 'lso called bill o% de%inite state.ent It is a .otion t+at a,,lies to any ,leadin* !+ic+ in t+e ,e"ce,tion o% t+e .o ant contains a.bi*uous alle*ations /Riano0 I% a co.,laint .a6es out a cause o% action, t+e a.bi*uity in so.e alle*ations o" %ailu"e to alle*e %acts !it+ su%%icient ,a"ticula"ity does not 3usti%y t+e %ilin* o% a .otion to dis.iss- &+e ,"o,e" "e.edy is to %ile a motion for bill of %articularsOffice and Pur#!se &o see6 an o"de" %"o. cou"t di"ectin* t+e ,leade" to sub.it a bill o% ,a"ticula"s !+ic+ a e"s .atte"s !it+ Gsu%%icient de%initeness o" ,a"ticula"ityK to enable t+e .o ant to %ile +is "es,onsi e ,leadin*/Sec- 1, Rule 140 G&+e ,"o,e" ,"e,a"ation o% an intelli*ent ans!e" "e?ui"es in%o".ation as to t+e ,"ecise natu"e, c+a"acte", sco,e and e8tent o% t+e cause o% action in o"de" t+at t+e ,leade" .ay be able to s?ua"ely .eet t+e issues "aised, t+e"eby ci"cu.sc"ibin* t+e. !it+in dete".ined con%ines and ,"e entin* su","ises du"in* t"ial, and in o"de" t+at +e .ay set %o"t+ +is de%enses !+ic+ .ay not be so "eadily a ailed o% i% t+e alle*ation cont"o e"ted a"e a*ue, inde%inite, unce"tain o" a"e .e"e *ene"al conclusionsK /Vi"ata - Sandi*anbayan0 G&+e ,"o,e" o%%ice o% a bill o% ,a"ticula"s is to in%o". t+e o,,osite ,a"ty and t+e cou"t o% t+e
)E(DE@, IV'( VIA&OR /4D, 150

,"ecise natu"e and c+a"acte" o% t+e ccause o% action-K /&an - Sandi*anbayan0

*IRATA v. SANDIGANBA.AN (!!( SCRA 5! (%%&" Ob3ect and ,u",ose o% a Bill o% ,a"ticula"2 /10 '.,li%y o" li.it a ,leadin* /40 S,eci%y .o"e .inutely and ,a"ticula"ly a clai. o" de%ense set u, and ,leaded in *ene"al te".s /50 Ei e in%o".ation, not contained in t+e ,leadin*, to t+e o,,osite ,a"ty and t+e cou"t as to t+e ,"ecise natu"e, c+a"acte", sco,e, and e8tent o% t+e cause o% action o" de%ense "elied on by t+e ,leade" /:0 ',,"ise t+e o,,osite ,a"ty o% t+e case !+ic+ +e +as to .eet />0 De%ine, cla"i%y, ,a"ticula"iHe, and li.it o" ci"cu.sc"ibe t+e issues in t+e case /=0 E8,edite t+e t"ial, and assist t+e cou"t /$0 P"e ent in3ustice o" do 3ustice in t+e case !+en t+at cannot be acco.,lis+ed !it+out t+e aid o% suc+ a bill/F0 P"o,e" ,"e,a"ation o% a "es,onsi e ,leadin* /#0 P"o,e" ,"e,a"ation o% an intelli*ent ans!e"C'C&S2 Cesa" Vi"ata !as a.on* t+e %o"ty7%ou" co7 de%endants o% Ben3a.in /Ao6oy0 Ro.ualdeH in a co.,laint %iled by t+e Sandi*anbayan- &+e co.,laint !as a.ended t+"ice, t+e last a.end.ent t+e"eto is deno.inated as Second '.ended Co.,laint- &+e ,lainti%% alle*ed %ou" actionable !"on*s a*ainst ,etitione"2 /10 +is ,a"tici,ation in t+e "eduction o% t+e elect"ic %"anc+ise ta8 and t+e ta"i%% duty o% %uel oil i.,o"ts by all ,ublic utilities /40 +is ,a"tici,ation in t+e t+e a,,"o al o% t+e M57Tea" P"o*"a. %o" t+e E8tension o% )ER'LCOMs Se" ices to '"eas /50 +is ,a"tici,ation in t+e %o".ation o% E"ecto"s Boldin*s, Incand /:0 +is actin* as a du..y o% co",o"ations cont"olled by Ro.ualdeH and )a"cosPetitione" .o ed to dis.iss t+e case on a"ious *"ounds includin* t+e %ailu"e o% t+e e8,anded Second '.ended Co.,laint to state a cause o% action- &+e .otion !as denied by Sandi*anbayan- SC a%%i".ed t+e Sandi*anbayan, and ad ised ,etitione" t+at i% +e ,e"cei e so.e a.bi*uity o" a*ueness t+e"ein, t+e "e.edy is not a .otion to dis.iss, but "at+e" %o" a bill o% ,a"ticula"sPetitione" %iled a .otion %o" bill o% ,a"ticula"s, clai.in* t+at t+e *ene"al and s!ee,in* alle*ations o% t+e Second '.ended Co.,laint and t+e ,u",o"ted ille*al acts i.,uted to t+e. as !ell as t+e alle*ed causes o% actions a"e a*ue and a.bi*uous- &+ey a"e not a e""ed !it+ su%%icient de%initeness o" ,a"ticula"ity as !ould enable de%endant Vi"ata to ,"o,e"ly ,"e,a"e +is ans!e" o" "es,onsi e ,leadin*- Sandi*anbayan ,a"tially *"anted t+e .otion9 o% t+e %ou" actionable !"on*s, it *"anted t+e .otion !it+ "es,ect only to t+e %ou"t+, since t+e ot+e" t+"ee actionable !"on*s a"e not s?ua"ely unde" t+e 4antuico case-

CIVIL PROCEDURE REVIEWER>D

(ot satis%ied !it+ t+e ,a"tial *"ant o% t+e .otion, ,etitione" %iled t+e instant ,etition unde" Rule => o% t+e Re ised Rules o% Cou"tISSUE2 .hether the Motion for 5ill of Particulars should be granted totally 6ES- It !as *"a e e""o" %o" t+e Sandi*anbayan to state t+at Q;a<lle*in* t+e s,eci%ic natu"e, c+a"acte", ti.e and e8tent o% t+e ,+"ase Macti e collabo"ationM !ould be a .e"e su",lus a*e and !ould not se" e any use%ul ,u",oseQ %o" ,"ecisely, !it+out any a.,li%ication o" ,a"ticula"iHation t+e"eo%, t+e ,etitione" !ould be +a"d ,ut in .eetin* t+e c+a"*es s?ua"ely and in ,leadin* a,,"o,"iate de%enses- (o" can We acce,t t+e ,ublic "es,ondentMs ,ostulation t+at Qany ?uestion as to t+e alidity o" le*ality o% t+e t"ansactions in ol ed in t+e c+a"*es a*ainst de%endant7.o ant is i""ele ant and i..ate"ial in t+e "esolution o% t+e instant incident, inas.uc+ as t+e sa.e is a .atte" o% de%ense !+ic+ s+all +a e its ,"o,e" ,lace du"in* t+e t"ial on t+e .e"its, and on t+e dete".ination o% t+e liability o% de%endant7.o ant a%te" t+e t"ial ,"o,e"-Q &+is is absu"d, %o" +o! .ay t+e ,etitione" set u, a de%ense at t+e ti.e o% t"ial i% in +is o!n ans!e" +e !as not able to ,lead suc+ a de%ense ,"ecisely because o% t+e a*ueness o" inde%initeness o% t+e alle*ations in t+e co.,laintN Unless +e ,leads t+e de%ense in +is ans!e", +e .ay be de,"i ed o% t+e "i*+t to ,"esent t+e sa.e du"in* t+e t"ial because o% +is !ai e" t+e"eo%Since t+e issues +a e not as yet been 3oined and no e idence +as so %a" been adduced by t+e ,a"ties t+e Sandi*anbayan !as in no ,osition to conclude t+at t+e .atte"s !+ic+ t+e- ,etitione" see6s a"e Q!it+in +is inti.ate o" ,e"sonal 6no!led*e-Q It is t+e o%%ice o" %unction, as !ell as ob3ect o" ,u",ose, o% a bill o% ,a"ticula"s to /10 a.,li%y o" li.it a ,leadin*, /40 s,eci%y .o"e .inutely and ,a"ticula"ly a clai. o" de%ense set u, and ,leaded in *ene"al te".s, /50 *i e in%o".ation, not contained in t+e ,leadin*, to t+e o,,osite ,a"ty and t+e cou"t as to t+e ,"ecise natu"e, c+a"acte", sco,e, and e8tent o% t+e cause o% action o" de%ense "elied on by t+e ,leade", and /:0 a,,"ise t+e o,,osite ,a"ty o% t+e case !+ic+ +e +as to .eet, /a0 to t+e end t+at t+e ,"oo% at t+e t"ial .ay be li.ited to t+e .atte"s s,eci%ied, and /b0 in o"de" t+at su","ise at, and needless ,"e,a"ation %o", t+e t"ial .ay be a oided, and /c0 t+at t+e o,,osite ,a"ty .ay be aided in %"a.in* +is ans!e"in* ,leadin* and ,"e,a"in* %o" t"ial- It +as also been stated t+at it is t+e %unction o" ,u",ose o% a bill o% ,a"ticula"s to />0 de%ine, cla"i%y, ,a"ticula"iHe, and li.it o" ci"cu.sc"ibe t+e issues in t+e case, to /=0 e8,edite t+e t"ial, and assist t+e cou"t- ' *ene"al %unction o" ,u",ose o% a bill o% ,a"ticula"s is to /$0 ,"e ent in3ustice o" do 3ustice in t+e case !+en t+at cannot be acco.,lis+ed !it+out t+e aid o% suc+ a bill)o"eo e", t+e ,+"ase Qto enable +i. ,"o,e"ly to ,"e,a"e +is "es,onsi e ,leadin* - - -Q in Section 1 o% Rule 14 i.,lies not 3ust t+e o,,o"tunity to /F0 ,"o,e"ly ,"e,a"e a "es,onsi e ,leadin* but also to /#0 ,"e,a"e an intelligent answer- &+e ,"o,e" ,"e,a"ation o% an intelli*ent ans!e" "e?ui"es in%o".ation as to t+e ,"ecise natu"e, c+a"acte", sco,e and e8tent o% t+e cause o% action in o"de" t+at t+e ,leade" .ay be able to s?ua"ely .eet t+e issues "aised, t+e"eby ci"cu.sc"ibin* t+e. !it+in dete".ined con%ines
)E(DE@, IV'( VIA&OR /4D, 150

and, ,"e entin* su","ises du"in* t+e t"ial, and in o"de" t+at +e .ay set %o"t+ +is de%enses !+ic+ .ay not be so "eadily a ailed o% i% t+e alle*ations cont"o e"ted a"e a*ue, inde%inite, unce"tain o" a"e .e"e *ene"al conclusionsW+at is be.!nd its sc!#e G&+e co.,laint %o" !+ic+ a bill %o" a .o"e de%inite state.ent is sou*+t need only in%o". t+e de%endant o% t+e essential /o" ulti.ate0 %acts to enable +i., t+e de%endant, to ,"e,a"e +is ans!e"J 'ny .o"e W,a"ticula"s in t+at e ent !ould be e identia"y in c+a"acte", !+ic+ .ust be adduced at t+e t"ial ,"o,e"-K /&an Sandi*anbayan0 0otes2

I% t+e ,u",ose is %o" ,"e,a"ation %o" t"ial, t+e a,,"o,"iate "e.edy is to a ail discovery %rocedures o" %re2trialIt is e""oneous to "e?ui"e disclosu"e o% e idence "elied u,on by t+e ad e"se ,a"ty in a .otion %o" bill o% ,a"ticula"s' .otion %o" bill o% ,a"ticula"s to "e?ui"e a ,leade" to set %o"t+ .atte"s s+o!in* 3u"isdiction o% a cou"t to "ende" its 3ud*.ent is not ,"o,e"-

&o cla"i%y alle*ations in t+e ,leadin*

TAN v. SANDIGANBA.AN (()0 SCRA &4 (%)%" &+e co.,laint %o" !+ic+ a bill %o" a .o"e de%inite state.ent is sou*+t, need only in%o". t+e de%endant o% t+e essential /o" ulti.ate0 %acts to enable t+e de%endant to ,"e,a"e an intelli*ent ans!e"C'C&S2 &+e PCEE %iled a co.,laint a*ainst t+e t!enty7 t!o ,etitione"s, to*et+e" !it+ t+e late Ce"dinand )a"cos, )"s- I.elda )a"cos, Don Ce""y, and Cede"ico )o"eno, ,"ayin*, a.on* ot+e"s, %o" t+e "etu"n and "econ eyance o% all %unds and ot+e" ,"o,e"ty i.,"essed !it+ const"ucti e t"ust in %a o" o% PCEE and t+e Cili,ino ,eo,le, as !ell as %unds and ot+e" ,"o,e"ty ac?ui"ed by De%endants by abuse o% "i*+t and ,o!e" and t+"ou*+ un3ust en"ic+.entSubse?uently, t+e PCEE %iled an E8,anded Co.,laint- In essence, t+ese a"e !+at t+e PCEE says2 1- &+e ,etitione" Lucio &an !as )"- )a"cosM business ,a"tne"9 4- &+"ou*+ undue in%luence, coe"cion, and abuse o% li*+t t+ey ac?ui"ed s+a"e+oldin*s %"o. a"ious %i".s, and built a business e.,i"e t+e"e%"o.9 5- &+e "e.ainin* ,etitione"s acted as t+ei" Qdu..ies, no.inees, o" a*entsQ9 :- &o*et+e" !it+ t+e )a"coses, t+ey .aneu e"ed t+ei" !ay into t+ese %i".s and ac?ui"ed cont"ol t+e"eo%9 >- &+e sa.e !e"e acco.,lis+ed t+"ou*+ unacce,table .ac+inations suc+ as inside" t"adin* and si.ila" acts, in iolation o% e8istin* la!s9

CIVIL PROCEDURE REVIEWER>1

&+ey also un3ustly en"ic+ed t+e ,etitione"s at t+e e8,ense o% t+e Re,ublic o% t+e P+ili,,ines and t+e Cili,ino ,eo,le(ot!it+standin* t+is, t+e t!enty7t!o ,etitione"s .o ed %o" a bill o% ,a"ticula"s-&+e "es,ondent Cou"t denied t+e ,etitione"sM .otion, and denied "econside"ation- &+e ,etitione"s sub.it t+at t+e PCEEMs a e".ents a"e .ade u, o% ba"e *ene"aliHations, ,"esu.,tuous conclusions o% %act and la!, and ,lain s,eculations, %o" !+ic+ a .otion %o" a .o"e de%inite state.ent o" %o" a bill o% ,a"ticula"s alle*edly lies&+e Sandi*anbayanMs decided t+at Pa"a*"a,+s 1: to 1>, inclusi e o% t+e E8,anded Co.,laint, +ad al"eady su,,lied o" ,"o ided t+e s,eci%ications and ,a"ticula"s t+e"eto%o"e lac6in* in t+e o"i*inal Co.,laintISSUE2 .hether the Motion for 5ill of Particulars should be granted NO2 &+e %o"e*oin* alle*ations o% t+e PCEE a"e actionable !"on*s t+at a"e ,"o,e" %o" a co.,laint- &+e PCEEMs Co.,laintIE8,anded Co.,laint is *a"bled in .any "es,ects, but t+is is no e8cuse %o" slot+ on t+e ,a"t o% t+e ,etitione"s- &+e Co.,laintIE8,anded Co.,laint is co.,lete enou*+ to ,e"is+ %ea"s o% t+e PCEE ,ullin* a su","ise subse?uentlyIt is not t+e o%%ice o% a bill o% ,a"ticula"s to su,,ly .ate"ial alle*ations necessa"y to t+e alidity o% a ,leadin*, o" to c+an*e a cause o% action o" de%ense stated in t+e ,leadin*, o" to state a cause o% action o" de%ense ot+e" t+an t+e one stated- 'lso it is not t+e o%%ice o" %unction, o" a ,"o,e" ob3ect, o% a bill o% ,a"ticula"s to set %o"t+ t+e ,leade"Ms t+eo"y o% +is cause o% action o" a "ule o% e idence on !+ic+ +e intends to "ely, o" to %u"nis+ e idential in%o".ation !+et+e" suc+ in%o".ation consists o% e idence !+ic+ t+e ,leade" ,"o,oses to int"oduce o" o% %acts !+ic+ constitute a de%ense o" o%%set %o" t+e ot+e" ,a"ty o" !+ic+ !ill enable t+e o,,osite ,a"ty to establis+ an a%%i".ati e de%ense not yet ,leaded- &+e PCEEMs co.,laint /as a.ended0 does set out alle*ations, +o!e e" con%usin*ly ,ut in ,"int, !+ic+, inte""elated to one anot+e", a"e enou*+ to su,,o"t a %o".al ci il c+a"*e- I% t+e ,etitione"s a"e not a!a"e o% t+e PCEEMs asse e"ations, t+e "e.edy is to deny t+e sa.e in t+ei" ans!e" %o" lac6 o% Q6no!led*e o" in%o".ation su%%icient to %o". a belie% as to t+e t"ut+ o% t+e said a e".ents- &+ey cannot, +o!e e", de.and %o" any .o"e ,a"ticula"s !it+out actually .a6in* t+e PCEE e8,ose its e idence unnecessa"ily be%o"e t+e t"ial sta*eW+en t! fi e It s+ould be %iled before a "es,onsi e ,leadin* I% di"ected to a co.,laint, 1> days a%te" se" ice o% su..ons I% di"ected to a counte"clai., 1D days %"o. se" ice o% t+e counte"clai. I% di"ected to a "e,ly, 1D days %"o. t+e se" ice o% said "e,ly ReCuisites &+e .otion s+all ,oint out /a0 de%ects co.,lained o%9 /b0 ,a"a*"a,+s !+e"ein t+ey a"e contained9 and /c0 t+e details desi"ed)E(DE@, IV'( VIA&OR /4D, 150

=-

Acti!n !f t+e c!urt &Sec2 5" Ru e '5( U,on "ecei,t o% t+e .otion, !+ic+ t+e cle"6 .ust i..ediately b"in* to t+e cou"ts attention, t+e cou"t .ay /a0 deny t+e .otion out"i*+t9 /b0 *"ant t+e .otion out"i*+t9 or /c0 +old a +ea"in* on t+e .otionC!m# iance wit+ !rder &Sec2 7" Ru e '5( I% t+e .otion is *"anted, in !+ole o" in ,a"t, !it+in 1D days %"o. notice o% t+e o"de", unless cou"t %i8es a di%%e"ent ,e"iod I% o"de" is not obeyed, o" in case o% insu%%icient co.,liance, t+e cou"t .ay /a0 o"de" t+e st"i6in* out o% a- t+e ,leadin*, or b- ,o"tions t+e"eo%, or /b0 .a6e suc+ o"de"s as it dee.s 3ust

IN1ERVEN1ION 1ntervention is t+e le*al ,"oceedin* by !+ic+ a ,e"son !+o is not a ,a"ty to t+e action is ,e".itted by t+e cou"t to beco.e a ,a"ty by inte" enin* in a ,endin* action after .eetin* t+e conditions and "e?ui"e.ents set by t+e Rules o% Cou"t It is a "e.edy by !+ic+ a t+i"d ,a"ty beco.es a liti*ant t+e"ein to enable +i. to ,"otect o" ,"ese" e a "i*+t o" inte"est !+ic+ .ay be a%%ected by suc+ ,"oceedin* It is never and inde,endent ,"oceedin*, but is ancilla"y and su,,le.ental to an e8istin* liti*ation It cannot alte" t+e natu"e o% t+e action and t+e issues al"eady 3oined It is neither co.,ulso"y no" .andato"y but only o,tional and ,e".issi e Legal interestOne t+at is actual and .ate"ial, di"ect and o% an i..ediate c+a"acte", not .e"ely contin*ent o" e8,ectant so t+at t+e inte" eno" !ill eit+e" *ain o" lose by t+e di"ect le*al o,e"ation o% t+e 3ud*.ent !e3uisitesH .ho may intervene/10 &+e"e .ust be a .otion %o" inte" ention %iled before "endition o% 3ud*.ent by t+e t"ial cou"t9 and /40 &+e .o ant .ust be a ,e"son !+o +as a le*al inte"est a- in t+e .atte" in liti*ation, b- in t+e success o% eit+e" o% t+e ,a"ties, o" an inte"est a*ainst bot+, o" c- is so situated as to be ad e"sely a%%ected by a dist"ibution o" ot+e" dis,osition o% ,"o,e"ty in t+e custody o% t+e cou"t o" o% an o%%ice" t+e"eo%/50 &+e inte" ention must not unduly delay o" ,"e3udice t+e ad3udication o% t+e "i*+ts o% t+e o"i*inal ,a"ties and t+at t+e inte" eno"s "i*+ts

CIVIL PROCEDURE REVIEWER>4

.ay not be %ully ,"otected in a se,a"ate ,"oceedin*- /Sec- 1, Rule 1#0 Be .ay, !it+ lea e o% cou"t, be allo!ed to inte" ene in t+e action&+e cou"t s+all conside" /10 !+et+e" o" not t+e inte" ention !ill unduly delay o" ,"e3udice t+e ad3udication o% t+e "i*+ts o% t+e o"i*inal ,a"ties, and /40 !+et+e" o" not t+e inte" eno"s "i*+ts .ay be %ully ,"otected in a se,a"ate ,"oceedin*- /Sec- 1, Rule 1#0 4ime to intervene1 &+e .otion to inte" ene .ay be %iled at any ti.e before "endition o% /udgment by the trial court ' co,y o% t+e ,leadin*7in7inte" ention s+all be attac+ed to t+e .otion and se" ed on t+e o"i*inal ,a"ties- /Sec- 4, Rule 1#0 Pleadings2in2intervention1 &+e inte" eno" s+all %ile a co.,laint7in7inte" ention i% +e asserts a claim a*ainst eit+e" o" all o% t+e o"i*inal ,a"tiesBe s+all %ile an ans!e"7in7inte" ention i% +e unites !it+ t+e de%endin* ,a"ty in resisting a claim a*ainst t+e latte"- /Sec- 5, Rule 1#0 Answer to com%laint2in2intervention1 &+e ans!e" to t+e co.,laint7in7inte" ention s+all be %iled !it+in %i%teen /1>0 days %"o. notice o% t+e o"de" ad.ittin* t+e sa.e, unless a di%%e"ent ,e"iod is %i8ed by t+e cou"t/Sec- :, Rule 1#0

t+e stoc6+olde"s "e,"esentin* at least 4I5 o% co",o"ate ca,ital9 /40 C+iao Lian +ad no aut+o"ity to cont"act suc+ loans9 and /50 t+e"e !as collusion bet!een t+e o%%icials o% C"ee.an and E?uitable in secu"in* t+e loans- &+e .otion to inte" ene !as denied, and t+e ,etitione"s a,,ealed to t+e Cou"t o% ',,eals)ean!+ile, E?uitable and C+iao Lian ente"ed into a co.,"o.ise a*"ee.ent !+ic+ !as a,,"o ed by t+e lo!e" cou"t- Bo!e e", it !as not co.,lied !it+, so E?uitable secu"ed a !"it o% e8ecution, and t!o lots o!ned by C"ee.an, Inc- !e"e le ied u,on and sold at ,ublic auction&+e C' sustained t+e denial o% t+e .otion %o" inte" ention, +oldin* t+at t+e co.,"o.ise a*"ee.ent !ill not necessa"ily ,"e3udice ,etitione"s !+ose "i*+ts to co",o"ate assets a"e at .ost inc+oate, ,"io" to t+e dissolution o% C"ee.an, and t+at inte" ention unde" Sec- 4, Rule 14 o% t+e Re ised Rules o% Cou"t is ,"o,e" only !+en oneMs "i*+t is actual, .ate"ial, di"ect and i..ediate and not si.,ly contin*ent o" e8,ectantISSUE2 .hether %etitioners may be allowed to intervene in the action NO2 &o allo! inte" ention, ;a< it .ust be s+o!n t+at t+e .o ant +as le*al inte"est in t+e .atte" in liti*ation, o" ot+e"!ise ?uali%ied9 and ;b< conside"ation .ust be *i en as to !+et+e" t+e ad3udication o% t+e "i*+ts o% t+e o"i*inal ,a"ties .ay be delayed o" ,"e3udiced, o" !+et+e" t+e inte" eno"Ms "i*+ts .ay be ,"otected in a se,a"ate ,"oceedin* o" not- Bot+ "e?ui"e.ents .ust concu" as t+e %i"st is not .o"e i.,o"tant t+an t+e second&+e inte"est !+ic+ entitles a ,e"son to inte" ene in a suit bet!een ot+e" ,a"ties .ust be in t+e .atte" in liti*ation and o% suc+ di"ect and i..ediate c+a"acte" t+at t+e inte" eno" !ill eit+e" *ain o" lose by t+e di"ect le*al o,e"ation and e%%ect o% t+e 3ud*.ent- Be"e, t+e inte"est, i% it e8ists at all, o% ,etitione"s7.o ants is indi"ect, contin*ent, "e.ote, con3ectu"al, conse?uential and collate"al- W+ile a s+a"e o% stoc6 "e,"esents a ,"o,o"tionate o" ali?uot inte"est in t+e ,"o,e"ty o% t+e co",o"ation, it does not est t+e o!ne" t+e"eo% !it+ any le*al "i*+t o" title to any o% t+e ,"o,e"ty, +is inte"est in t+e co",o"ate ,"o,e"ty bein* e?uitable o" bene%icial in natu"e- S+a"e+olde"s a"e in no le*al sense t+e o!ne"s o% co",o"ate ,"o,e"ty, !+ic+ is o!ned by t+e co",o"ation as a distinct le*al ,e"sonInte" ention is Qan act o" ,"oceedin* by !+ic+ a t+i"d ,e"son is ,e".itted to beco.e a ,a"ty to an action o" ,"oceedin* bet!een ot+e" ,e"sons, and !+ic+ "esults .e"ely in t+e addition o% a ne! ,a"ty o" ,a"ties to an o"i*inal action, %o" t+e ,u",ose o% +ea"in* and dete".inin* at t+e sa.e ti.e all con%lictin* clai.s !+ic+ .ay be .ade to t+e sub3ect .atte" in liti*ation- It is not an inde,endent ,"oceedin*, but an ancilla"y and su,,le.ental one !+ic+, in t+e natu"e o% t+in*s, unless ot+e"!ise ,"o ided %o" by t+e statute o" Rules o% Cou"t, .ust be in subo"dination to t+e .ain ,"oceedin*- It .ay be laid do!n as a *ene"al "ule t+at an inte" eno" is li.ited to t+e %ield o% liti*ation o,en to t+e o"i*inal ,a"tiesIn t+e case at ba", t+e"e is no .o"e ,"inci,al action to be "esol ed as a !"it o% e8ecution +ad al"eady been issued by t+e lo!e" cou"t and t+e clai. o% E?uitable +ad al"eady been satis%ied- &+e decision o% t+e lo!e" cou"t

Anci ar. t! #endin$ acti!n SA$ v. CA ((%5 SCRA '40" Inte" ention is Qan act o" ,"oceedin* by !+ic+ a t+i"d ,e"son is ,e".itted to beco.e a ,a"ty to an action o" ,"oceedin* bet!een ot+e" ,e"sons, and !+ic+ "esults .e"ely in t+e addition o% a ne! ,a"ty o" ,a"ties to an o"i*inal action, %o" t+e ,u",ose o% +ea"in* and dete".inin* at t+e sa.e ti.e all con%lictin* clai.s !+ic+ .ay be .ade to t+e sub3ect .atte" in liti*ationIt is not an inde,endent ,"oceedin*, but an ancilla"y and su,,le.ental one !+ic+, in t+e natu"e o% t+in*s, unless ot+e"!ise ,"o ided %o" by t+e statute o" Rules o% Cou"t, .ust be in subo"dination to t+e .ain ,"oceedin*- It .ay be laid do!n as a *ene"al "ule t+at an inte" eno" is li.ited to t+e %ield o% liti*ation o,en to t+e o"i*inal ,a"tiesC'C&S2 E?uitable Ban6in* Co",o"ation /E?uitable0 %iled a collection suit !it+ ,"eli.ina"y attac+.ent a*ainst C"ee.an, Inc- /C"ee.an0 and Sa! C+iao Lian, its P"esident and Eene"al )ana*e"- &+e ,etitione"s /Ruben Sa!, et al-0 .o ed to inte" ene, alle*in* t+at /10 t+e loan t"ansactions bet!een C+iao Lian and E?uitable !e"e not a,,"o ed by
)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER>5

+ad al"eady beco.e %inal and in %act +ad al"eady been en%o"ced- &+e"e is t+e"e%o"e no .o"e ,"inci,al ,"oceedin* in !+ic+ t+e ,etitione"s .ay inte" eneE3ce#ti!n METRO#OLITAN BAN2 #RESIDING -UDGE (()! SCRA )!0 (%%0" 5 TRUST CO. v.

&+e inte" eno" in a ,endin* case is entitled to be +ea"d li6e any ot+e" ,a"ty- 'n inte" eno"s ,etition s+o!in* it to be entitled to a%%i".ati e "elie% !ill be ,"ese" ed and +ea"d "e*a"dless o% t+e dis,osition o% t+e ,"inci,al actionC'C&S2 )et"oban6 loaned Eood Ea"t+ E.,o"iu. /EEE0 P:-#), and t+e latte" .o"t*a*ed its ai" conditionin* units as secu"ity- Said units !e"e ,u"c+ased %"o. Rayco" 'i" Cont"ol syste.s- Bo!e e", Rayco" !as not co.,letely ,aid by EEE on t+e installation costs to t+e e8tent o% P1>D,DDDW+en EEE !as %o"eclosed by BPI Conso"tiu., )et"oban6 %iled a co.,laint %o" "e,le in to "eco e" t+e units- &+e de%endants conso"tiu. %iled t+ei" ans!e"Subse?uently, Rayco" %iled a .otion %o" lea e to inte" ene, !+ic+ !as *"anted&+e co.,laint !as late" dis.issed !it+ ,"e3udice !+en t+e ,a"ties a*"eed to a co.,"o.ise settle.ent, !it+out in%o".in* t+e inte" eno" Rayco"ISSUE2 .hether or not the intervenor in a %ending case is entitled to be heard li6e any other %arty 6ES2 &+e"e is +e"e no %inal dis.issal o% t+e .ain case- &+e a%o"e.entioned o"de" o% t+e lo!e" cou"t +as t+e e%%ect not only o% allo!in* t+e inte" ention suit to ,"oceed but also o% acatin* its ,"e ious o"de" o% dis.issal- &+e "einstate.ent o% t+e case in o"de" to t"y and dete".ine t+e clai.s and "i*+ts o% t+e inte" eno" is ,"o,e"- &+e 3oint .otion o% t+e"ein ,lainti%% and t+e o"i*inal de%endants to dis.iss t+e case, !it+out notice to and consent o% t+e inte" eno", +as t+e e%%ect o% ,uttin* to "est only t+e "es,ecti e clai.s o% t+e said o"i*inal ,a"ties inter se but t+e sa.e cannot in any !ay a%%ect t+e clai. o% ,"i ate "es,ondent !+ic+ !as allo!ed by t+e cou"t to inte" ene !it+out o,,osition %"o. t+e o"i*inal ,a"ties'%te" t+e inte" eno" +as a,,ea"ed in t+e action, t+e ,lainti%% +as no absolute "i*+t to ,ut t+e inte" eno" out o% cou"t by t+e dis.issal o% t+e action- &+e ,a"ties to t+e o"i*inal suit +a e no ,o!e" to !ai e o" ot+e"!ise annul t+e substantial "i*+ts o% t+e inte" eno"- W+en an inte" enin* ,etition +as been %iled, a ,lainti%% .ay not dis.iss t+e action in any "es,ect to t+e ,"e3udice o% t+e inte" eno"It +as e en been +eld t+at t+e si.,le %act t+at t+e t"ial cou"t ,"o,e"ly dis.issed ,lainti%% s action does not "e?ui"e dis.issal o% t+e action o% t+e inte" eno"- 'n inte" eno" +as t+e "i*+t to clai. t+e bene%it o% t+e o"i*inal suit and to ,"osecute it to 3ud*.ent- &+e "i*+t cannot be de%eated by dis.issal o% t+e suit by t+e ,lainti%% a%te" t+e %ilin* o% t+e ,etition and notice t+e"eo% to t+e ot+e" ,a"ties' ,e"son !+o +as an inte"est in t+e sub3ect .atte" o% t+e action +as t+e "i*+t, on +is o!n .otion, to inte" ene and
)E(DE@, IV'( VIA&OR /4D, 150

beco.e a ,a"ty to t+e suit, and e en a%te" t+e co.,laint +as been dis.issed, .ay ,"oceed to +a e any actual cont"o e"sy establis+ed by t+e ,leadin*s dete".ined in suc+ action- &+e t"ial cou"tMs dis.issal o% ,lainti%%s action does not "e?ui"e dis.issal o% t+e action o% t+e inte" eno"&+e inte" eno" in a ,endin* case is entitled to be +ea"d li6e any ot+e" ,a"ty- ' clai.7in7inte" ention t+at see6s a%%i".ati e "elie% ,"e ents a ,lainti%% %"o. ta6in* a olunta"y dis.issal o% t+e .ain action- W+e"e a co.,laint in inte" ention !as %iled be%o"e ,lainti%%Ms action +ad been e8,"essly dis.issed, t+e inte" eno"Ms co.,laint !as not sub3ect to dis.issal on t+e *"ound t+at no action !as ,endin*, since dis.issal o% ,lainti%%s action did not a%%ect t+e "i*+ts o% t+e inte" eno" o" a%%ect t+e dis.issal o% inte" eno"Ms co.,laint- 'n inte" eno"Ms ,etition s+o!in* it to be entitled to a%%i".ati e "elie% !ill be ,"ese" ed and +ea"d "e*a"dless o% t+e dis,osition o% t+e ,"inci,al action-

SU--ONS &RULE 'A( Definiti!n and #ur#!se $ummons is t+e !"it by !+ic+ t+e de%endant is noti%ied o% t+e action b"ou*+t a*ainst +i. &+e issuance o% su..ons is mandatory on t+e ,a"t o% t+e cou"t In an action in %ersonam, t+e ,u",ose o% su..ons is not only to noti%y t+e de%endant o% t+e action, but also to ac?ui"e 3u"isdiction o e" +is ,e"son Se" ice o% su..ons is "e?ui"ed even if t+e de%endant is a!a"e o% t+e %ilin* o% t+e action a*ainst +i. In an action in rem o" ?uasi in rem, t+e ,u",ose o% su..ons is .ainly to satis%y t+e constitutional "e?ui"e.ents o% due ,"ocessDut. t! issue &+e cle"6 o% cou"t s+all issue t+e co""es,ondin* su..ons to t+e de%endants /10 u,on t+e %ilin* o% t+e co.,laint and /40 ,ay.ent o% t+e "e?uisite le*al %ees- /Sec- 1, Rule 1:0 1ssuance of alias summonsI% a su..ons is "etu"ned !it+out bein* se" ed on any o" all o% t+e de%endants, t+e se" e"2 /10 s+all also se" e a co,y o% t+e "etu"n on t+e ,lainti%%s counsel, /40 statin* t+e "easons %o" t+e %ailu"e o% se" ice, /50 !it+in %i e />0 days %"o. suc+ %ailu"e&+e cle"6 .ay issue an alias su..ons /10 on de.and o% t+e ,lainti%%, /40 i% t+e su..ons +as been lost, or /50 i% t+e su..ons +as been "etu"ned !it+out bein* se" ed /Sec- >, Rule 1:0 ,!rm C!ntent

CIVIL PROCEDURE REVIEWER>:

&+e su..ons s+all be /10 di"ected to t+e de%endant, /40 si*ned by t+e cle"6 o% cou"t, and /50 unde" seal&+e su..ons s+all contain2 /a0 t+e na.e o% t+e cou"t and t+e na.es o% t+e ,a"ties to t+e action9 /b0 a di"ection t+at t+e de%endant ans!e" !it+in t+e ti.e %i8ed by t+ese Rules9 and /c0 a notice t+at unless t+e de%endant so ans!e"s, ,lainti%% !ill ta6e 3ud*.ent by de%ault and .ay be *"anted t+e "elie% a,,lied %o"' co,y o% t+e co.,laint and o"de" %o" a,,oint.ent o% *ua"dian ad litem, i% any, s+all be attac+ed to t+e o"i*inal and eac+ co,y o% t+e su..ons- /5a0 If wit+ eave !f c!urt It s+all be .ade /10 by .otion, /40 in !"itin*, /50 su,,o"ted by a%%ida it o% t+e ,lainti%% o" so.e ,e"son on +is be+al%, and /:0 settin* %o"t+ t+e *"ounds %o" t+e a,,lication/Sec- 1$, Rule 1:0 W+! serves &+e su..ons .ay be se" ed by /10 t+e s+e"i%%, /40 +is de,uty, /50 ot+e" ,"o,e" cou"t o%%ice", or /:0 any suitable ,e"son aut+o"iHed by t+e cou"t issuin* t+e su..ons, %o" 3usti%iable "easons/Sec- 5, Rule 1:0 On w+!m In $enera &+e cle"6 o% cou"t s+all issue t+e co""es,ondin* su..ons to t+e de%endants- /Sec- 1, Rule 1:0 $ervice in %erson on defendantW+ene e" ,"acticable, t+e su..ons s+all be se" ed /10 by +andin* a co,y t+e"eo% to t+e de%endant in ,e"son, or /40 by tende"in* it to +i., i% +e "e%uses to "ecei e and si*n %o" it- /Sec- =, Rule 1:0 Entit. wit+!ut 4uridica #ers!na it. W+en ,e"sons associated in an entity !it+out 3u"idical ,e"sonality a"e sued unde" t+e na.e by !+ic+ t+ey a"e *ene"ally o" co..only 6no!n, se" ice .ay be e%%ected /10 u,on all t+e de%endants by se" in* u,on any one o% t+e., or /40 u,on t+e ,e"son in c+a"*e o% t+e o%%ice o" ,lace o% business .aintained in suc+ na.eBU& suc+ se" ice shall not bind indi idually any ,e"son !+ose connection !it+ t+e entity +as, u,on due notice, been se e"ed before the action !as b"ou*+t- /Sec- F, Rule 1:0
)E(DE@, IV'( VIA&OR /4D, 150

Ass!ciati!ns D!mestic $ervice u%on domestic %rivate /uridical entitySe" ice .ay be .ade on /10 t+e ,"esident, /40 .ana*in* ,a"tne", /50 *ene"al .ana*e", /:0 co",o"ate sec"eta"y, />0 t"easu"e", or /=0 in7+ouse counsel- /Sec- 11, Rule 1:0 List e3c usive E.B. *ILLAROSA 5 #ARTNER CO. LTD. *. BENITO (&(! SCRA 65 (%%%" &+e libe"al const"uction "ule cannot be in o6ed and utiliHed as a substitute %o" t+e ,lain le*al "e?ui"e.ents as to t+e .anne" in !+ic+ su..ons s+ould be se" ed on a do.estic co",o"ation- &+e o%%ice" u,on !+o. se" ice is .ade .ust be t+e one stated in t+e statute ot+e"!ise t+e se" ice is insu%%icientC'C&S2 Petitione" E-B- Villa"osa, a li.ited ,a"tne"s+i,, and ,"i ate "es,ondent Benita e8ecuted a deed o% sale !it+ de elo,.ent a*"ee.ent !+e"ein Villa"osa a*"eed to de elo, ce"tain ,a"cels o% land belon*in* to Benito into a +ousin* subdi ision %o" t+e const"uction o% lo! cost +ousin* units- &+ey %u"t+e" a*"eed t+at in case o% liti*ation a"isin* %"o. any dis,ute, t+e enue s+all be in t+e ,"o,e" cou"ts o% )a6ati&+e ,"i ate "es,ondent subse?uently %iled a Co.,laint %o" B"eac+ o% Cont"act and Da.a*es a*ainst t+e ,etitione" be%o"e t+e &"ial Cou"t o% )a6ati %o" lac6 o% de elo,.ents !it+in t+e a%o"esaid ,"o,e"ties- &+e Se" ice o% Su..ons as !ell as t+e co.,laint !as se" ed u,on t+e b"anc+ .ana*e" in Ca*ayan de O"o- Plainti%% %iled a S,ecial )otion to Dis.iss alle*in* t+at t+e su..ons !as i.,"o,e"ly se" ed and %o" lac6 o% 3u"isdiction o e" t+e ,e"son o% t+e de%endant- Res,ondent says t+at t+e Se" ice !as i.,"o,e"ly se" ed since it !as *i en to an e.,loyee in its b"anc+ o%%ice and not to one o% t+e ,e"sons enunciated in Rule 1: section 11 o% t+e ROC&+e t"ial cou"t "uled in %a o" o% "es,ondent +ence t+is ,etitionISSUE2 .hether the service of summons on the branch manager was %ro%er NO2 Section 11, Rule 1: allo!s se" ice to t+e general manager, not t+e b"anc+ .ana*e"- &+e .a8i. e8,"ession unios est e8clusion alte"ius a,,lies in t+is case&+e enu.e"ation o% ,e"sons !+o. su..ons .ay be se" ed is "est"icted, li.ited and e8clusi e- &+e ne! "ule s,eci%ically c+an*ed t+e ,"o,e" "eci,ient o% a se" ice %"o. a .e"e .ana*e" to a *ene"al .ana*e" in o"de" to ,"e ent a.bi*uous and illo*ical inte","etations in t+e %utu"e- &+e cou"t t+e"e%o"e ac?ui"es no 3u"isdiction o e" t+e ,e"son o% t+e de%endantIn t+e case at ba", since t+e se" ice !as *i en to a .e"e b"anc+ .ana*e" in one o% ,etitione"s b"anc+es

CIVIL PROCEDURE REVIEWER>>

instead o% t+e *ene"al .ana*e" in its .ain o%%ice in Da ao, suc+ se" ice is dee.ed insu%%icient- &+e cou"ts t+e"e%o"e did not ac?ui"e 3u"isdiction o e" t+e ,e"son o% t+e ,etitione"Pub ic c!r#!rati!n W+en t+e de%endant is t+e !e%ublic of the Phili%%ines, se" ice .ay be e%%ected on t+e Solicito" Eene"alIn case o% a %rovince, city or munici%ality, o" li6e ,ublic co",o"ations, se" ice .ay be e%%ected on /10 its e8ecuti e +ead, or /40 on suc+ ot+e" o%%ice" o" o%%ice"s as t+e la! o" t+e cou"t .ay di"ect- /Sec- 15, Rule 1:0 -in!rs W+en t+e de%endant is a .ino", se" ice s+all be .ade /10 u,on +i. ,e"sonally and /40 on +is le*al *ua"dian i% +e +as one, o" i% none, u,on +is *ua"dian ad litem !+ose a,,oint.ent s+all be a,,lied %o" by t+e ,lainti%%, or /50 on +is %at+e" o" .ot+e", In t+e case o% a .ino", se" ice .ay also be .ade- /Sec- 1D, Rule 1:0 Insane" inc!m#etents W+en t+e de%endant is insane o" ot+e"!ise an inco.,etent, se" ice s+all be .ade /10 u,on +i. ,e"sonally and /40 on +is le*al *ua"dian i% +e +as one, o" i% none, u,on +is *ua"dian ad litem !+ose a,,oint.ent s+all be a,,lied %o" by t+e ,lainti%%- /Sec- 1D, Rule 1:0 Pris!ners W+en t+e de%endant is a ,"isone" con%ined in a 3ail o" institution, se" ice s+all be e%%ected u,on +i. by t+e o%%ice" +a in* t+e .ana*e.ent o% suc+ 3ail o" institution !+o is dee.ed de,utiHed as a s,ecial s+e"i%% %o" said ,u",ose- /Sec- #, Rule 1:0 Un*n!wn defendant !r w+ereab!uts un*n!wn W+e"e t+e de%endant is /10 desi*nated as an un6no!n o!ne", o" t+e li6e, or /40 !+ene e" +is !+e"eabouts a"e un6no!n and cannot be asce"tained by dili*ent in?ui"y, Se" ice .ay, by leave of court, be e%%ected u,on +i. by /10 ,ublication in a ne!s,a,e" o% *ene"al ci"culation and /40 in suc+ ,laces and %o" suc+ ti.e as t+e cou"t .ay o"de"- /Sec- 1:, Rule 1:0 W+et+er in rem" Cuasi in rem !r #ers!na Residents tem#!rari . !ut W+en any action is co..enced a*ainst a de%endant !+o o"dina"ily "esides !it+in t+e P+ili,,ines, but !+o is te.,o"a"ily out o% it, se" ice .ay, by lea e o% cou"t, be also e%%ected out o% t+e P+ili,,ines by e8t"ate""ito"ial se" ice- /Sec- 1=, Rule 1:0 MONTEFALCON v. *AS,UE/
)E(DE@, IV'( VIA&OR /4D, 150

(554 SCRA 5(& !00)" &+e no".al .et+od o% se" ice o% su..ons on one te.,o"a"ily absent is by substituted se" ice because ,e"sonal se" ice ab"oad and se" ice by ,ublication a"e not o"dina"y .eans o% su..onin* de%endantsSu..ons in a suit in %ersonam a*ainst a te.,o"a"ily absent "esident .ay be by substituted se" ice as do.icilia"ies o% a State a"e al!ays a.enable to suits in %ersonam t+e"einC'C&S2 Dolo"es P- )onte%alcon %iled a Co.,laint %o" ac6no!led*.ent and su,,o"t a*ainst Ronnie S- Vas?ueH be%o"e t+e R&C, alle*in* t+at +e" son Lau"ence )onte%alcon is t+e ille*iti.ate c+ild o% Vas?ueH- S+e ,"ayed t+at Vas?ueH be obli*ed to *i e su,,o"t to Lau"ence, !+ose ce"ti%icate o% li e bi"t+ +e si*ned as %at+e"' s+e"i%% t"ied to se" e t+e su..ons and co.,laint on Vas?ueH in '"o7aldao, (abua, Ca.a"ines Su"- Vas?ueHMs *"and%at+e" "ecei ed t+e. as Vas?ueH !as in )anila- Vas?ueHMs .ot+e" "etu"ned t+e docu.ents to t+e cle"6 o% cou"t, !+o in%o".ed t+e cou"t o% t+e non7se" ice o% su..ons- Petitione"s t+en %iled a .otion to decla"e Vas?ueH in de%ault, !+ic+ !as denied %o" lac6 o% ,"o,e" se" ice o% su..ons&+e cou"t issued an alias su..ons on Vas?ueH at &a*ui*u,on ,etitione"sM .otion- ' &a*ui* de,uty s+e"i%% se" ed it by substituted se" ice on Vas?ueHMs ca"eta6e"'not+e" alias su..ons !as issued, also "ecei ed by t+e ca"eta6e"On ,etitione"sM .otion, t+e t"ial cou"t decla"ed Vas?ueH in de%ault %o" %ailu"e to %ile an ans!e" des,ite t+e substituted se" ice o% su..ons- Vas?ueH !as %u"nis+ed !it+ cou"t o"de"s and notices o% t+e ,"oceedin*s at +is last 6no!n add"ess, but t+ese !e"e "etu"ned as +e +ad alle*edly .o ed to anot+e" ,lace and le%t no ne! add"essIn 4DD1, t+e cou"t *"anted ,etitione"sM ,"aye"s&+e cou"t added t+at Vas?ueH ad.itted t+e t"ut+ o% t+e alle*ations by +is silenceIn t+e sa.e yea", Vas?ueH su"%aced and %iled a notice o% a,,eal !+ic+ ,etitione"s o,,osed- ',,eal !as *"anted- Be%o"e t+e a,,ellate cou"t, +e a"*ued t+at t+e t"ial cou"t ne e" ac?ui"ed 3u"isdiction o e" +is ,e"son- &+e a,,ellate cou"t noted t+at t+e se" ice o% su..ons on Vas?ueH !as Qde%ecti eQ as t+e"e !as no e8,lanation o% i.,ossibility o% ,e"sonal se" ice and an atte.,t to e%%ect ,e"sonal se" icePetitione"s a"*ued t+at any atte.,t at ,e"sonal se" ice o% su..ons !as needless as Vas?ueH al"eady le%t %o" ab"oad as an o e"seas sea%a"e" !+en t+e s+e"i%% se" ed t+e su..ons in &a*ui*- &+e a,,ellate cou"t, +o!e e", denied t+e .otionISSUE2 .hether there was a valid substituted service of summons 6ES2 &o ac?ui"e 3u"isdiction o e" t+e ,e"son o% a de%endant, se" ice o% su..ons .ust be ,e"sonal, o" i% t+is is not %easible !it+in a "easonable ti.e, t+en by substituted se" ice- It is o% 3udicial notice t+at o e"seas Cili,ino sea%a"e"s a"e cont"actual e.,loyees- 's an o e"seas

CIVIL PROCEDURE REVIEWER>=

sea%a"e", Vas?ueH !as a Cili,ino "esident te.,o"a"ily out o% t+e count"y- Bence, se" ice o% su..ons on +i. is *o e"ned by Rule 1:, Section 1=, !+ic+ "e%e""ed to e8t"ate""ito"ial se" ice- Because Section 1= o% Rule 1: uses t+e !o"ds Q.ayQ and Qalso,Q it is not .andato"y- Ot+e" .et+ods o% se" ice o% su..ons allo!ed unde" t+e Rules .ay also be a ailed o% by t+e se" in* o%%ice" on a de%endant7sea.anOb iously, ,e"sonal se" ice o% su..ons !as not ,"acticable since t+e de%endant !as te.,o"a"ily out o% t+e count"y- &o ,"oceed !it+ ,e"sonal se" ice o% su..ons on a de%endant7sea.an !+o !ent on o e"seas cont"act !o"6 !ould not only be i.,"actical and %utile, it !ould also be absu"d&+e substituted se" ice in &a*ui* !as alid and 3usti%ied because ,"e ious atte.,ts !e"e .ade by t+e s+e"i%%s to se" e t+e su..ons, but to no a ail- 'lso, t+e ca"eta6e" !+o "ecei ed t+e alias su..ons !as o% suitable a*e and disc"etion, t+en "esidin* at Vas?ueHMs d!ellin*&+e"e is no ?ua""el t+at it !as "eally Vas?ueHMs "esidence, as e idenced by +is e.,loy.ent cont"act, e8ecuted unde" t+e su,e" ision and aut+o"ity o% t+e POE'- It can be ,"esu.ed t+at t+e ca"eta6e" .ust +a e in%o".ed +i. one !ay o" anot+e" o% t+e suit u,on +is "etu"n a%te" %inis+in* +is nine7.ont+ cont"act !it+ Cat+o. S+i, )ana*e.entIn Montalban v# Ma,imo, !e +eld t+at t+e no".al .et+od o% se" ice o% su..ons on one te.,o"a"ily absent is by substituted se" ice because ,e"sonal se" ice ab"oad and se" ice by ,ublication a"e not o"dina"y .eans o% su..onin* de%endants- Su..ons in a suit in %ersonam a*ainst a te.,o"a"ily absent "esident .ay be by substituted se" ice as do.icilia"ies o% a State a"e al!ays a.enable to suits in %ersonam t+e"ein)o"e i.,o"tantly, t+e absence in t+e %inal s+e"i%%Ms "etu"n o% a state.ent about t+e i.,ossibility o% ,e"sonal se" ice does not conclusi ely ,"o e t+at t+e se" ice is in alid- Suc+ %ailu"e s+ould not unduly ,"e3udice ,etitione"s i% !+at !as undisclosed !as in %act done- &+e s+e"i%%Ms ce"ti%icate o% se" ice o% su..ons is %rima facie e idence o% t+e %acts set out in it- Only clea" and con incin* e idence .ay o e"co.e its ,"esu.,tion o% "e*ula"ity- Ei en t+e ci"cu.stances in t+e ,"esent case, !e a*"ee t+at t+e ,"esu.,tion o% "e*ula"ity in t+e ,e"%o".ance o% duty on t+e ,a"t o% t+e s+e"i%% standsN!n)resident W+en t+e de%endant /10 does not "eside and is not %ound in t+e P+ili,,ines, and /40 t+e action a%%ects a- t+e ,e"sonal status o% t+e ,lainti%% or b- "elates to, o" t+e sub3ect o% !+ic+ is, ,"o,e"ty !it+in t+e P+ili,,ines, in !+ic+ t+e de%endant +as o" clai.s a lien o" inte"est, actual o" contin*ent9 or c- in !+ic+ t+e "elie% de.anded consists, !+olly o" in ,a"t, in e8cludin* t+e de%endant %"o. any inte"est t+e"ein, or d- t+e ,"o,e"ty o% t+e de%endant +as been attac+ed !it+in t+e P+ili,,ines,

Se" ice .ay, by lea e o% cou"t, be e%%ected out o% t+e P+ili,,ines /10 by ,e"sonal se" ice as unde" section =9 o" /40 by ,ublication in a ne!s,a,e" o% *ene"al ci"culation in suc+ ,laces and %o" suc+ ti.e as t+e cou"t .ay o"de", in !+ic+ case a co,y o% t+e su..ons and o"de" o% t+e cou"t s+all be sent by "e*iste"ed .ail to t+e last 6no!n add"ess o% t+e de%endant, /50 o" in any ot+e" .anne" t+e cou"t .ay dee. su%%icient'ny o"de" *"antin* suc+ lea e s+all s,eci%y a "easonable ti.e, !+ic+ s+all not be less t+an si8ty /=D0 days a%te" notice, !it+in !+ic+ t+e de%endant .ust ans!e"- /Sec- 1>, Rule 1:0 in rem" Cuasi in rem SANTOS v. #NOC (556 SCRA !'! !00)" W+e"e t+e de%endant could not be ,e"sonally se" ed !it+ su..ons des,ite dili*ent e%%o"ts to locate +is !+e"eabouts, +e .ay ,"o,e"ly be se" ed !it+ su..ons o% ,ublicationC'C&S2 P(OC E8,lo"ation Co",- /"es,ondent0 %iled a co.,laint %o" a su. o% .oney a*ainst Ped"o &- Santos, J"/,etitione"0, see6in* to collect t+e P=#F,>D4-1D un,aid balance o% t+e ca" loan ad anced to Santos !+en +e !as still .e.be" o% t+e boa"d o% di"ecto"sPe"sonal se" ice o% su..ons to Santos %ailed because +e could not be located in +is last 6no!n add"ess des,ite ea"nest e%%o"ts to do so- On P(OCs .otion, t+e t"ial cou"t allo!ed se" ice o% su..ons by ,ublicationP(OC t+en caused t+e ,ublication o% t+e su..ons in !emate, a ne!s,a,e" o% *ene"al ci"culation in t+e P+ili,,ines- &+e"ea%te", P(OC sub.itted t+e a%%ida it o% ,ublication o% t+e ad e"tisin* .ana*e" o% !emate and an a%%ida it o% se" ice o% t+e P(OCs e.,loyee to t+e e%%ect t+at +e sent a co,y o% t+e su..ons by "e*iste"ed .ail to Santos last 6no!n add"essW+en Santos %ailed to %ile +is ans!e", P(OC .o ed t+e case be set %o" t+e "ece,tion o% its e idence e, %arte- &+e t"ial cou"t *"anted t+e .otion- 'n o.nibus .otion %o" "econside"ation !as t+en sou*+t by Santos, alle*in* t+at t+e a%%ida it o% se" ice sub.itted by P(OC %ailed to co.,ly !it+ Sec- 1#, Rule 1:, as it !as not e8ecuted by t+e Cle"6 o% Cou"t- Be also clai.ed denial o% due ,"ocess %o" +e !as not noti%ied o% t+e t"ial cou"ts o"de"- P(OC o,,osed t+e .otion and insisted t+at it co.,lied !it+ t+e "ules on se" ice by ,ublication- &+e t"ial cou"t denied Santos .otionISSUE2 .hether there is im%ro%er service of summons because summons by %ublication only a%%lies to actions in rem, and not in %ersonam NO2 Since ,etitione" could not be ,e"sonally se" ed !it+ su..ons des,ite dili*ent e%%o"ts to locate +is

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER>$

!+e"eabouts, "es,ondent sou*+t and !as *"anted lea e o% cou"t to e%%ect se" ice o% su..ons u,on +i. by ,ublication in a ne!s,a,e" o% *ene"al ci"culation- &+us, ,etitione" !as ,"o,e"ly se" ed !it+ su..ons by ,ublication&+e in "e.Iin ,e"sona. distinction !as si*ni%icant unde" t+e old "ule because it !as silent as to t+e 6ind o% action to !+ic+ t+e "ule !as a,,licable- Because o% t+is silence, t+e Cou"t li.ited t+e a,,lication o% t+e old "ule to in "e. actions only- &+is +as been c+an*ed- &+e ,"esent "ule e8,"essly states t+at it a,,lies Q;i<n any action !+e"e t+e de%endant is desi*nated as an un6no!n o!ne", o" t+e li6e, o" !+ene e" +is !+e"eabouts a"e un6no!n and cannot be asce"tained by dili*ent in?ui"y-Q &+us, it no! a,,lies to any action, !+et+e" in ,e"sona., in "e. o" ?uasi in "e.Se" ice o% su..ons by ,ublication is ,"o ed by t+e a%%ida it o% t+e ,"inte", +is %o"e.an o" ,"inci,al cle"6, o" o% t+e edito", business o" ad e"tisin* .ana*e" o% t+e ne!s,a,e" !+ic+ ,ublis+ed t+e su..ons- &+e se" ice o% su..ons by ,ublication is co.,le.ented by se" ice o% su..ons by "e*iste"ed .ail to t+e de%endantMs last 6no!n add"ess- &+is co.,le.enta"y se" ice is e idenced by an a%%ida it Qs+o!in* t+e de,osit o% a co,y o% t+e su..ons and o"de" %o" ,ublication in t+e ,ost o%%ice, ,osta*e ,"e,aid, di"ected to t+e de%endant by "e*iste"ed .ail to +is last 6no!n add"ess-Q &+e "ules, +o!e e", do not "e?ui"e t+at t+e a%%ida it o% co.,le.enta"y se" ice be e8ecuted by t+e cle"6 o% cou"t- W+ile t+e t"ial cou"t o"dina"ily does t+e .ailin* o% co,ies o% its o"de"s and ,"ocesses, t+e duty to .a6e t+e co.,le.enta"y se" ice by "e*iste"ed .ail is i.,osed on t+e ,a"ty !+o "eso"ts to se" ice by ,ublication&+e t"ial cou"t ac?ui"ed 3u"isdiction o e" t+e ,e"son o% ,etitione" by +is o!n olunta"y a,,ea"ance in t+e action a*ainst +i.- &+is !as e?ui alent to se" ice o% su..ons and ested t+e t"ial cou"t !it+ 3u"isdiction o e" t+e ,e"son o% ,etitione"-!des !f service Pers!na W+ene e" ,"acticable, t+e su..ons s+all be se" ed /10 by +andin* a co,y t+e"eo% to t+e de%endant in ,e"son, or /40 by tende"in* it to +i., i% +e "e%uses to "ecei e and si*n %o" it- /Sec- =, Rule 1:0 Substituted I%, %o" 3usti%iable causes, t+e de%endant cannot be se" ed !it+in a "easonable ti.e as ,"o ided in t+e ,"ecedin* section, se" ice .ay be e%%ected /a0 by lea in* co,ies o% t+e su..ons at t+e de%endants "esidence !it+ so.e ,e"son o% suitable a*e and disc"etion t+en "esidin* t+e"ein, or /b0 by lea in* t+e co,ies at de%endants o%%ice o" "e*ula" ,lace o% business !it+ so.e co.,etent ,e"son in c+a"*e t+e"eo%- /Sec- $, Rule 1:0 ROBINSON v. MIRALLES (5(0 SCRA 6') !006"

Unde" ou" ,"ocedu"al "ules, ,e"sonal se" ice is *ene"ally ,"e%e""ed o e" substituted se" ice, t+e latte" .ode o% se" ice bein* a .et+od e8t"ao"dina"y in c+a"acte"- Co" substituted se" ice to be 3usti%ied, t+e %ollo!in* ci"cu.stances .ust be clea"ly establis+ed2 /a0 ,e"sonal se" ice o% su..ons !it+in a "easonable ti.e !as i.,ossible9 /b0 e%%o"ts !e"e e8e"ted to locate t+e ,a"ty9 and /c0 t+e su..ons !as se" ed u,on a ,e"son o% su%%icient a*e and disc"etion "esidin* at t+e ,a"tys "esidence o" u,on a co.,etent ,e"son in c+a"*e o% t+e ,a"tys o%%ice o" ,lace o% businessCailu"e to do so !ould in alidate all subse?uent ,"oceedin*s on 3u"isdictional *"ounds-

C'C&S2 Res,ondent Celita )i"alles %iled a co.,laint %o" collection o% su. o% .oney a*ainst ,etitione" Re.elita Robinson, alle*in* t+at U4D,D>: !as bo""o!ed by Robinson, as s+o!n in t+e )O' t+ey bot+ e8ecutedSu..ons !as se" ed on Robinson at +e" *i en add"ess- Bo!e e", ,e" "etu"n o% se" ice o% t+e S+e"ii%, ,etitione" no lon*e" "esides t+e"e- &+us, t+e t"ial cou"t issued an alias su..ons to be se" ed at )untinlu,a City, ,etitione"s ne! add"ess'*ain, t+e S+e"i%% "e,o"ted t!ice t+e"ea%te" t+at t+e su..ons could not be se" ed on ,etitione"- S+e"i%% Pontente, !+o !as to se" e t+e su..ons inte",osed t+at +e !as sto,,ed by t+e Secu"ity Eua"d o% 'laban* Bills Villa*e because t+ey !e"e alle*edly told by Robinson not to let anyone ,"oceed to +e" +ouse i% s+e is not a"oundDes,ite t+e e8,lanations o% t+e S+e"i%%, t+e *ua"ds didnt let +i. in- &+e"ea%te", t+e S+e"i%% 3ust le%t a co,y o% t+e co.,laint to a *ua"d, !+o "e%used to a%%i8 +is si*natu"e on t+e o"i*inal co,y, so +e !ill be t+e one to *i e t+e su..ons to ,etitione" RobinsonE entually, ,etitione" Robinson !as decla"ed in de%ault %o" +e" %ailu"e to %ile an ans!e" seasonably des,ite se" ice o% su..ons- &+e t"ial cou"t "ende"ed its decision in %a o" o% )i"alles o"de"in* Robinson to ,ay +e" obli*ations ,lus cost o% da.a*es- ' co,y o% t+e cou"t O"de" !as sent to ,etitione" by "e*iste"ed .ail at +e" ne! add"ess and a !"it o% e8ecution !as also issuedRobinson %iled a ,etition %o" "elie% %"o. t+e 3ud*.ent by de%ault- S+e clai.ed t+at su..ons !as i.,"o,e"ly se" ed u,on +e", t+us, t+e t"ial cou"t ne e" ac?ui"ed 3u"isdiction o e" +e" and t+at all its ,"oceedin*s a"e oid- Petitione" Robinson contends t+at t+e se" ice o% t+e su..ons u,on t+e subdi ision *ua"d is not in co.,liance !it+ Section $, Rule 1: since +e is not "elated to +e" o" stayin* at +e" "esidence, as "e?ui"ed by t+e "uleISSUE2 .hether the substituted service of summons effected is valid 6ES2 'lt+ou*+ t+e SC +a e "uled t+at t+e statuto"y "e?ui"e.ents o% substituted se" ice .ust be %ollo!ed st"ictly, %ait+%ully, and %ully and any substituted se" ice ot+e" t+an t+at aut+o"iHed by t+e Rules is

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER>F

conside"ed ine%%ecti e, t+e Cou"t %"o!ns u,on an o e"ly st"ict a,,lication o% t+e Rules- It is t+e s,i"it, "at+e" t+an t+e lette" o% t+e ,"ocedu"al "ules, t+at *o e"nsOb iously, it !as i.,ossible %o" t+e s+e"i%% to e%%ect ,e"sonal o" substituted se" ice o% su..ons u,on ,etitione"- We note t+at s+e %ailed to cont"o e"t t+e s+e"i%%s decla"ation- (o" did s+e deny +a in* "ecei ed t+e su..ons t+"ou*+ t+e secu"ity *ua"d- Conside"in* +e" st"ict inst"uction to t+e secu"ity *ua"d, s+e .ust bea" its conse?uences- &+us, !e a*"ee !it+ t+e t"ial cou"t t+at su..ons +as been ,"o,e"ly se" ed u,on ,etitione" and t+at it +as ac?ui"ed 3u"isdiction o e" +e"W+e"e t+e action is in %ersonam and t+e de%endant is in t+e P+ili,,ines, t+e se" ice o% su..ons .ay be .ade t+"ou*+ ,e"sonal o" substituted se" ice in t+e .anne" ,"o ided %o" in Sections = and $, Rule 1: o% t+e 1##$ Rules o% P"ocedu"e, as a.endedUnde" ou" ,"ocedu"al "ules, ,e"sonal se" ice is *ene"ally ,"e%e""ed o e" substituted se" ice, t+e latte" .ode o% se" ice bein* a .et+od e8t"ao"dina"y in c+a"acte"- Co" substituted se" ice to be 3usti%ied, t+e %ollo!in* ci"cu.stances .ust be clea"ly establis+ed2 /a0 ,e"sonal se" ice o% su..ons !it+in a "easonable ti.e !as i.,ossible9 /b0 e%%o"ts !e"e e8e"ted to locate t+e ,a"ty9 and /c0 t+e su..ons !as se" ed u,on a ,e"son o% su%%icient a*e and disc"etion "esidin* at t+e ,a"tys "esidence o" u,on a co.,etent ,e"son in c+a"*e o% t+e ,a"tys o%%ice o" ,lace o% business- Cailu"e to do so !ould in alidate all subse?uent ,"oceedin*s on 3u"isdictional *"oundsPub icati!n W+e"e t+e de%endant is /10 desi*nated as an un6no!n o!ne", o" t+e li6e, or /40 !+ene e" +is !+e"eabouts a"e un6no!n and cannot be asce"tained by dili*ent in?ui"y, Se" ice .ay, by leave of court, be e%%ected u,on +i. by /10 ,ublication in a ne!s,a,e" o% *ene"al ci"culation and /40 in suc+ ,laces and %o" suc+ ti.e as t+e cou"t .ay o"de"- /Sec- 1:, Rule 1:0 E3traterrit!ria W+en t+e de%endant /10 does not "eside and is not %ound in t+e P+ili,,ines, and /40 t+e action a%%ects a- t+e ,e"sonal status o% t+e ,lainti%% or b- "elates to, o" t+e sub3ect o% !+ic+ is, ,"o,e"ty !it+in t+e P+ili,,ines, in !+ic+ t+e de%endant +as o" clai.s a lien o" inte"est, actual o" contin*ent9 or c- in !+ic+ t+e "elie% de.anded consists, !+olly o" in ,a"t, in e8cludin* t+e de%endant %"o. any inte"est t+e"ein, or d- t+e ,"o,e"ty o% t+e de%endant +as been attac+ed !it+in t+e P+ili,,ines, Se" ice .ay, by lea e o% cou"t, be e%%ected out o% t+e P+ili,,ines /:0 by ,e"sonal se" ice as unde" section =9 o"

/>0 by ,ublication in a ne!s,a,e" o% *ene"al ci"culation in suc+ ,laces and %o" suc+ ti.e as t+e cou"t .ay o"de", in !+ic+ case a co,y o% t+e su..ons and o"de" o% t+e cou"t s+all be sent by "e*iste"ed .ail to t+e last 6no!n add"ess o% t+e de%endant, /=0 o" in any ot+e" .anne" t+e cou"t .ay dee. su%%icient'ny o"de" *"antin* suc+ lea e s+all s,eci%y a "easonable ti.e, !+ic+ s+all not be less t+an si8ty /=D0 days a%te" notice, !it+in !+ic+ t+e de%endant .ust ans!e"- /Sec- 1>, Rule 1:0 !esidents tem%orarily out of the Phili%%ines. W+en any action is co..enced a*ainst a de%endant !+o o"dina"ily "esides !it+in t+e P+ili,,ines, but !+o is te.,o"a"ily out o% it, se" ice .ay, by lea e o% cou"t, be also e%%ected out o% t+e P+ili,,ines by e8t"ate""ito"ial se" ice- /Sec- 1=, Rule 1:0 *ALMONTE v. CA (!5! SCRA %! (%%6" 's ,etitione" Lou"des Val.onte is a non"esident !+o is not %ound in t+e P+ili,,ines, se" ice o% su..ons on +e" .ust be in acco"dance !it+ Rule 1:, X1$- Suc+ se" ice, to be e%%ecti e outside t+e P+ili,,ines, .ust be .ade eit+e" /10 by ,e"sonal se" ice9 /40 by ,ublication in a ne!s,a,e" o% *ene"al ci"culation in suc+ ,laces and %o" suc+ ti.e as t+e cou"t .ay o"de", in !+ic+ case a co,y o% t+e su..ons and o"de" o% t+e cou"t s+ould be sent by "e*iste"ed .ail to t+e last 6no!n add"ess o% t+e de%endant9 o" /50 in any ot+e" .anne" !+ic+ t+e cou"t .ay dee. su%%icient-

C'C&S2 Rosita Di.alanta, siste" o% ,etitione" Lou"des Val.onte, %iled a co.,laint %o" ,a"tition o% "eal ,"o,e"ty and accountin* o% "entals a*ainst ,etitione"s Val.onte s,ouses- Lou"des Val.onte is a %o"ei*n "esident- &+e R&C denied ,"i ate "es,ondentMs .otion to decla"e ,etitione" Lou"des '- Val.onte in de%ault- ' .otion %o" "econside"ation !as si.ila"ly denied- P"i ate "es,ondent %iled a ,etition %o" certiorari, ,"o+ibition and mandamus !it+ t+e Cou"t o% ',,eals- &+e Cou"t o% ',,eals "ende"ed a decision *"antin* t+e ,etition and decla"in* Lou"des in de%ault- ' co,y o% t+e a,,ellate cou"tMs decision !as "ecei ed by ,etitione" Lou"des +usband at +is )anila la! o%%ice and in Seattle, Was+in*tonISSUE2 .hether in an action for %artition filed against her and her husband, who is also her attorney, summons intended for her may be served on her husband, who has a law office in the Phili%%ines NO2 P"i ate "es,ondentMs action, !+ic+ is %o" ,a"tition and accountin* unde" Rule =#, is in t+e natu"e o% an action 3uasi in rem- Suc+ an action is essentially %o" t+e ,u",ose o% a%%ectin* t+e de%endantMs inte"est in a s,eci%ic

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,"o,e"ty and not to "ende" a 3ud*.ent a*ainst +i.- 's ,etitione" Lou"des Val.onte is a non"esident !+o is not %ound in t+e P+ili,,ines, se" ice o% su..ons on +e" .ust be in acco"dance !it+ Rule 1:, X1$- Suc+ se" ice, to be e%%ecti e outside t+e P+ili,,ines, .ust be .ade eit+e" /10 by ,e"sonal se" ice9 /40 by ,ublication in a ne!s,a,e" o% *ene"al ci"culation in suc+ ,laces and %o" suc+ ti.e as t+e cou"t .ay o"de", in !+ic+ case a co,y o% t+e su..ons and o"de" o% t+e cou"t s+ould be sent by "e*iste"ed .ail to t+e last 6no!n add"ess o% t+e de%endant9 o" /50 in any ot+e" .anne" !+ic+ t+e cou"t .ay dee. su%%icient-

.otion- R&C t+us issued su..ons and t+e DE) !ent to Sin*a,o"e and se" ed su..ons on PES)ean!+ile, R&C denied t+e )otion to Dis.iss %iled by PEIP, co.,ellin* t+e latte" to %ile its 'ns!e" to t+e '.ended Co.,laintPES %iled !it+ t+e R&C a S,ecial ',,ea"ance and )otion to Dis.iss t+e '.ended Co.,laint, !+ic+ !e"e denied- It +eld t+at e en t+ou*+ t+e '.ended Co.,laint is ,"i.a"ily %o" da.a*es, it does "elate to a ,"o,e"ty o% PES, to !+ic+ t+e latte" +as a clai. inte"est, o" an actual o" contin*ent lien, !+ic+ !ill .a6e it %all unde" one o% t+e "e?uisites %o" e8t"ate""ito"ial se" ice- PES %iled a Petition %o" Ce"tio"a"i unde" Rule => !it+ a,,lication %o" te.,o"a"y "est"ainin* o"de" andIo" ,"eli.ina"y in3unction be%o"e t+e C'- &+e C' a%%i".ed t+e R&C O"de"sISSUE2 .hether summons were %ro%erly served under the >nd or 8th instance of e,tra2territorial service NO2 E8t"ate""ito"ial se" ice o% su..ons a,,lies only !+e"e t+e action is in "e. o" ?uasi in "e., but not i% an action is in %ersonam- In t+e case at ba", t+e"e can ne e" be a alid e8t"ate""ito"ial se" ice o% su..ons u,on it, because t+e case in ol in* collection o% a su. o% .oney and da.a*es is an action in %ersonam, as it deals !it+ t+e ,e"sonal liability o% PES by "eason o% t+e alle*ed unilate"al te".ination o% t+e Dist"ibution '*"ee.ent- &+e ob3ecti e sou*+t in Da6ilas Co.,laint !as to establis+ a clai. a*ainst PES- )o"eo e", &+e action instituted by Da6ila a%%ects t+e ,a"ties alone, not t+e !+ole !o"ld&+us, bein* an action in ,e"sona., ,e"sonal se" ice o% su..ons !it+in t+e P+ili,,ines is necessa"y in o"de" %o" t+e R&C to alidly ac?ui"e 3u"isdiction o e" t+e ,e"son o% PES, and t+is is not ,ossible in t+e ,"esent case because t+e PES is a non7"esident and is not %ound !it+in t+e P+ili,,ines- Da6ilas alle*ation in its '.ended Co.,laint t+at PES +ad ,e"sonal ,"o,e"ty !it+in t+e P+ili,,ines in t+e %o". o% s+a"es o% stoc6 in PEIP did not .a6e t+e case %all unde" any o% t+e %ou" instances .entioned in Section 1>, Rule 1: o% t+e Rules o% Cou"t, as to con e"t t+e action in %ersonam to an action in rem o" ?uasi in rem and, subse?uently, .a6e t+e e8t"ate""ito"ial se" ice o% su..ons u,on t+e ,etitione" alid&+e 4nd instance %o" e8t"a7te""ito"ial se" ice +as no a,,lication in t+e case- &+e action %o" collection o% a su. o% .oney and da.a*es !as ,u"ely based on t+e ,e"sonal liability o% t+e PES- Co" t+e action to be one %allin* unde" t+e 4nd instance, t+e .ain sub3ect .atte" o% t+e action .ust be t+e ,"o,e"ty itsel% o% t+e PES in t+e P+ili,,ines and in suc+ instance, 3ud*.ent !ill be li.ited to t+e res- Bo!e e", t+e alle*ations .ade by t+e "es,ondent t+at t+e ,etitione" +as ,"o,e"ty !it+in t+e P+ili,,ines in su,,o"t o% its a,,lication %o" t+e issuance o% a !"it o% attac+.ent !as actually denied by t+e R&C(eit+e" does t+e alle*ation t+at PES +ad ,e"sonal ,"o,e"ty !it+in t+e P+ili,,ines in t+e %o". o% s+a"es o% stoc6 in PEIP con e"t t+e case %"o. an action in %ersonam to one ?uasi in rem, so as to ?uali%y said case unde" t+e : t+ instance o% e8t"a7te""ito"ial se" ice- W+at is "e?ui"ed is not a .e"e alle*ation o% t+e e8istence o% ,e"sonal ,"o,e"ty belon*in* to t+e non7"esident de%endant !it+in t+e P+ili,,ines but t+at t+e non7"esident de%endants ,e"sonal

#ER2IN ELMER SINGA#ORE v. DA2ILA TRADING (5&0 SCRA ('0" E8t"ate""ito"ial se" ice o% su..ons a,,lies only !+e"e t+e action is in rem o" ?uasi in rem, but not i% an action is in %ersonamC'C&S2 Da6ila &"adin* Co", /Da6ila0 ente"ed into a Dist"ibution '*"ee.ent !it+ Pe"6in7El.e" Sin*a,o"e PteLtd- /PES0 !+ic+ a,,ointed Da6ila as sole dist"ibuto" o% its ,"oducts in t+e P+ili,,ines- PES !as obli*ated to *i e Da6ila a co..ission %o" t+e sale o% its ,"oducts in t+e P+ili,,ines- Da6ila !as *"anted t+e "i*+t to ,u"c+ase and sell t+e ,"oducts o% PES- &+e a*"ee.ent %u"t+e" sti,ulated t+at Da6ila s+all o"de" t+e ,"oducts o% PES, !+ic+ it s+all sell in t+e P+ili,,ines, eit+e" %"o. PES itsel% o" %"o. PEIPBo!e e", PES unilate"ally te".inated t+e Dist"ibution '*"ee.ent, ,"o.,tin* Da6ila to %ile be%o"e t+e R&C a Co.,laint %o" Collection o% Su. o% )oney and Da.a*es !it+ P"aye" %o" Issuance o% a W"it o% 'ttac+.ent a*ainst PES and its a%%iliate, Pe"6in7El.e" Inst"u.ents P+ili,,ines Co",o"ation /PEIP0- R&C denied "es,ondents ,"aye"Da6ila %iled E87Pa"te )otions %o" Issuance o% Su..ons and %o" Lea e o% Cou"t to De,utiHe Da6ilas Eene"al )ana*e" /DE)0 to Se" e Su..ons Outside o% t+e P+ili,,ines- R&C *"anted t+is .otion- &+us, an 'lias Su..ons !as issued by t+e R&C to PES- But t+e said 'lias Su..ons !as se" ed and "ecei ed by Pe"6in7El.e" 'sia /PE'0, a co",o"ation alle*edly un"elated to PESPEIP .o ed to dis.iss t+e Co.,laint %iled by Da6ilaPE', on t+e ot+e" +and, sent lette"s to Da6ila and R&C to in%o". t+e. o% t+e !"on*%ul se" ice o% su..ons'cco"din*ly, Da6ila %iled an E87Pa"te )otion to 'd.it '.ended Co.,laint, to*et+e" !it+ t+e '.ended Co.,laint clai.in* t+at /10 PE' +ad beco.e a sole ,"o,"ieto"s+i, o!ned by t+e PES, /40 PES c+an*ed its na.e to PE', /50 suc+ c+an*es did not a oid its due and outstandin* obli*ations to Da6ila, and /:0 t+e na.e o% PES in t+e co.,laint s+ould be c+an*ed to PE'- R&C ad.itted t+e '.ended Co.,laintDa6ila %iled anot+e" )otion %o" t+e Issuance o% Su..ons and %o" Lea e o% Cou"t to De,utiHe DE) to se" e su..ons outside t+e P+ili,,ines- R&C *"anted t+e

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,"o,e"ty located !it+in t+e P+ili,,ines .ust +a e been actually attac+ed- E idently, PESs ,e"sonal ,"o,e"ty !it+in t+e P+ili,,ines, in t+e %o". o% s+a"es o% stoc6 in PEIP, +ad not been attac+ed9 +ence, t+e case %o" collection o% su. o% .oney and da.a*es "e.ains an action in ,e"sona.In t+e case at ba", t+e"e can ne e" be a alid e8t"ate""ito"ial se" ice o% su..ons u,on it, because t+e case in ol in* collection o% a su. o% .oney and da.a*es is an action in %ersonam, as it deals !it+ t+e ,e"sonal liability o% PES by "eason o% t+e alle*ed unilate"al te".ination o% t+e Dist"ibution '*"ee.ent- &+e ob3ecti e sou*+t in Da6ilas Co.,laint !as to establis+ a clai. a*ainst PES- )o"eo e", &+e action instituted by Da6ila a%%ects t+e ,a"ties alone, not t+e !+ole !o"ld&+us, bein* an action in ,e"sona., ,e"sonal se" ice o% su..ons !it+in t+e P+ili,,ines is necessa"y in o"de" %o" t+e R&C to alidly ac?ui"e 3u"isdiction o e" t+e ,e"son o% PES, and t+is is not ,ossible in t+e ,"esent case because t+e PES is a non7"esident and is not %ound !it+in t+e P+ili,,ines- Da6ilas alle*ation in its '.ended Co.,laint t+at PES +ad ,e"sonal ,"o,e"ty !it+in t+e P+ili,,ines in t+e %o". o% s+a"es o% stoc6 in PEIP did not .a6e t+e case %all unde" any o% t+e %ou" instances .entioned in Section 1>, Rule 1: o% t+e Rules o% Cou"t, as to con e"t t+e action in %ersonam to an action in rem o" ?uasi in rem and, subse?uently, .a6e t+e e8t"ate""ito"ial se" ice o% su..ons u,on t+e ,etitione" alidRe$istered mai inva id service !f summ!ns V! untar. a##earance &+e de%endants olunta"y a,,ea"ance in t+e action s+all be e?ui alent to se" ice o% su..ons&+e inclusion in a .otion to dis.iss o% other grounds aside from lac6 of /urisdiction over the %erson o% t+e de%endant shall not be dee.ed a olunta"y a,,ea"ance/Sec- 4D, Rule 1:0 CE/AR v. RICAFORT0BAUTISTA (506 SCRA &!! !006" &+e SC still +olds t+at 3u"isdiction !as alidly ac?ui"ed by t+e t"ial cou"t- 'lt+ou*+ t+e substituted se" ice u,on +i. o% su..ons !as de%ecti e, said de%ect !as cu"ed by +is olunta"y a,,ea"anceC'C&S2 P"i ate "es,ondent S,eci%ied )ate"ials Co",o"ation %iled a Co.,laint %o" collection o% su. o% .oney a*ainst ,etitione" CeHa" due to t+e latte"s %ailu"e to ,ay t+e const"uction .ate"ials it ,u",o"tedly ,u"c+ased unde" a c"edit line e8tended by ,"i ate "es,ondent- 't t+e ti.e o% t+e institution o% t+e action, ,etitione"s obli*ation stood at P1,F=D,DDD-DD, and unde" t+e te".s o% t+e c"edit a""an*e.ent, .ate"ials sold to ,etitione" !e"e su,,osed to be ,aid !it+in 5D days %"o. date o% deli e"y, sub3ect to a 5L inte"est ,e" .ont+ %o" delayed ,ay.ents'%te" t+e %ilin* o% t+e co.,laint, su..ons !as issued, and t+is !as "ecei ed by a ce"tain Robles- 's ,etitione" %ailed to %ile +is ans!e" to t+e co.,laint, ,"i ate "es,ondent .o ed t+at +e be decla"ed in de%ault- &+is .otion !as *"anted)E(DE@, IV'( VIA&OR /4D, 150

P"i ate "es,ondent %iled a )otion to 'd.it '.ended Co.,laint alle*in* t+at it e""oneously co.,uted ,etitione"s obli*ation to be P1,F=D,DDD-DD, !+en it s+ould +a e a.ounted to P4,DD>,DDD-DD- ' co,y o% t+e .otion and t+e '.ended Co.,laint !e"e ,e"sonally "ecei ed by ,etitione" as e idenced by +is si*natu"es t+e"eon- &+e '.ended Co.,laint !as o"de"ed ad.itted- &+e cou"t "uled in %a o" o% ,lainti%%Petitione", by !ay o% s,ecial a,,ea"ance, a"*ued t+at t+e t"ial cou"t did not ac?ui"e 3u"isdiction o e" +is ,e"son&+is .otion !as denied- Petitione" %iled be%o"e t+e C' a Petition %o" 'nnul.ent o% Jud*.ent, P"eli.ina"y In3unction !it+ P"aye" %o" &e.,o"a"y Rest"ainin* O"de"&+is ,etition !as dis.issed %o" G%ailu"e to attac+ an a%%ida it o% .e"it alle*in* t+e %acts su,,o"tin* t+e *ood and substantial de%ense, as !ell as t+e a%%ida its o% !itnesses o" docu.ent su,,o"tin* t+e de%ense-K Petitione" %iled a .otion %o" "econside"ation but t+is !as denied- Collo!in* t+is set7bac6, ,etitione" %iled be%o"e t+is Cou"t a Petition %o" Re ie! on Certiorari o% t+e "esolutions o% t+e C', !+ic+ !as also denied %o" %ailu"e to co.,ly !it+ ,"ocedu"al "e?ui"e.ents- Ou" "esolution beca.e %inal and e8ecuto"y- P"i ate "es,ondent %iled a )otion %o" E8ecution be%o"e t+e t"ial cou"tISSUE2 .hether the court ac3uired /urisdiction over the %erson of the %etitioner by virtue of the substituted service of summons effected by the sheriff NO2 &+e ,e"son !+o alle*edly "ecei ed t+e su..ons !as identi%ied in t+e s+e"i%%s "etu"n as '"senio Robles, !as not ,etitione"s e.,loyee, !as a nati e o% Batan*as and !as .e"ely ,eddlin* .an*o seedlin*s !it+in t+e icinity o% +is o%%ice !+en t+e su..ons !as se" edIn t+e e ent t+at su..ons cannot be se" ed !it+in a "easonable ti.e, t+e Rules ,e".it t+at substituted se" ice .ay be "eso"ted to- In t+is case, t+e s+e"i%% e.,loyed t+e substituted se" ice o% su..ons- &+e de%ect, +o!e e", in t+e .anne" in !+ic+ +e i.,le.ented t+is .ode o% se" ice o% su..ons is "eadily a,,a"ent on t+e %ace o% t+e "etu"n- It .ust be e.,+asiHed t+at la!s ,"o idin* %o" .odes ot+e" t+an t+e ,e"sonal se" ice o% su..ons .ust be st"ictly %ollo!ed in o"de" %o" t+e cou"t to ac?ui"e 3u"isdiction o e" t+e ,e"son o% "es,ondent o" de%endant- 's t+e s+e"i%%s "etu"n in t+e ,"esent case does not contain any state.ent !it+ "e*a"d to t+e i.,ossibility o% ,e"sonal se" ice t+e sa.e is ,atently de%ecti e and so t+e ,"esu.,tion o% "e*ula"ity in t+e ,e"%o".ance o% o%%icial %unctions !ill not lieISSUE2 .hether %etitionerBs voluntary a%%earance cured the defect in service of summons# 6ES2 In Flores v# Iurbito, !e +eld t+at an a,,ea"ance in !+ate e" %o". !it+out e8,"essly ob3ectin* to t+e 3u"isdiction o% t+e cou"t o e" t+e ,e"son, is a sub.ission to t+e 3u"isdiction o% t+e cou"t o e" t+e ,e"son o% t+e de%endant o" "es,ondent, t+us2 Be .ay a,,ea" !it+out suc+ %o".al a,,ea"ance and t+us sub.it +i.sel% to t+e 3u"isdiction o% t+e cou"t- Be .ay a,,ea" by ,"esentin* a .otion, %o" e8a.,le, and unless by suc+ a,,ea"ance +e s,eci%ically ob3ects to t+e 3u"isdiction o% t+e cou"t, +e t+e"eby *i es +is assent to t+e 3u"isdiction o% t+e cou"t o e" +is ,e"son-

CIVIL PROCEDURE REVIEWER=1

Bence, in t+is case, ,etitione"s %ilin* o% a )otion %o" Re7settin* o% t+e Bea"in* e%%ecti ely cu"ed t+e de%ect o% t+e substituted se" ice o% su..ons- Petitione"s insistence o% lac6 o% 3u"isdiction o e" +is ,e"son is utte"ly lac6in* in any le*al basisLHUILLER v. BRITISH AIR$A.S (6(5 SCRA &)0 !0(0" ' de%endant !+o %iles a .otion to dis.iss, assailin* t+e 3u"isdiction o% t+e cou"t o e" +is ,e"son, to*et+e" !it+ ot+e" *"ounds "aised t+e"ein, is not dee.ed to +a e a,,ea"ed olunta"ily be%o"e t+e cou"t C'C&S2 L+uillie" too6 "es,ondent B"itis+ 'i"!ays %li*+t >:F %"o. London, United Ain*do. to Ro.e, Italy- Once on boa"d, s+e alle*edly "e?uested Balliday, one o% t+e "es,ondents %li*+t attendants, to assist +e" in ,lacin* +e" +and7ca""ied lu**a*e in t+e o e"+ead bin- Bo!e e", Balliday alle*edly "e%used to +el, and assist +e", and e en sa"castically "e.a"6ed t+at QI% I !e"e to +el, all 5DD ,assen*e"s in t+is %li*+t, I !ould +a e a b"o6en bac6YQ Petitione" %u"t+e" alle*ed t+at !+en t+e ,lane !as about to land in Ro.e, Italy, anot+e" %li*+t attendant, Ae""i*an, sin*led +e" out %"o. a.on* all t+e ,assen*e"s in t+e business class section to lectu"e on ,lane sa%ety'lle*edly, Ae""i*an .ade +e" a,,ea" to t+e ot+e" ,assen*e"s to be i*no"ant, uneducated, stu,id, and in need o% lectu"in* on t+e sa%ety "ules and "e*ulations o% t+e ,lane'%%"onted, ,etitione" assu"ed Ae""i*an t+at s+e 6ne! t+e ,lanes sa%ety "e*ulations bein* a %"e?uent t"a ele"&+e"eu,on, Ae""i*an alle*edly t+"ust +is %ace a .e"e %e! centi.ete"s a!ay %"o. t+at o% t+e ,etitione" and .enacin*ly told +e" t+at QWe dont li6e you" attitude-Q U,on a""i al in Ro.e, ,etitione" co.,lained to "es,ondents *"ound .ana*e" and de.anded an a,olo*yBo!e e", t+e latte" decla"ed t+at t+e %li*+t ste!a"ds !e"e Qonly doin* t+ei" 3ob-Q &+us, ,etitione" %iled t+e co.,laint %o" da.a*esSu..ons, to*et+e" !it+ a co,y o% t+e co.,laint, !as se" ed on t+e "es,ondent t+"ou*+ Ec+e a""ia, Eene"al )ana*e" o% Eu"o7P+ili,,ine 'i"line Se" ices, IncRes,ondent, by !ay o% s,ecial a,,ea"ance t+"ou*+ counsel, %iled a )otion to Dis.iss on *"ounds o% lac6 o% 3u"isdiction o e" t+e case and o e" t+e ,e"son o% t+e "es,ondent- Res,ondent alle*ed t+at only t+e cou"ts o% London, United Ain*do. o" Ro.e, Italy, +a e 3u"isdiction o e" t+e co.,laint %o" da.a*es ,u"suant to t+e Wa"sa! Con ention- &+us, since "es,ondent is do.iciled in London9 "es,ondents ,"inci,al ,lace o% business is in London9 ,etitione" bou*+t +e" tic6et in Italy /t+"ou*+ Jee,ney &"a el S-'-S, in Ro.e09 and Ro.e, Italy is ,etitione"s ,lace o% destination, t+en it %ollo!s t+at t+e co.,laint s+ould only be %iled in t+e ,"o,e" cou"ts o% London, United Ain*do. o" Ro.e, Italy- Li6e!ise, it !as alle*ed t+at t+e case .ust be dis.issed %o" lac6 o% 3u"isdiction o e" t+e ,e"son o% t+e "es,ondent because t+e su..ons !as e""oneously se" ed on Eu"o7P+ili,,ine 'i"line Se" ices, Inc- !+ic+ is not its "esident a*ent in t+e P+ili,,ines-

Instead o% %ilin* a Co..entIO,,osition, ,etitione" %iled an U"*ent E87Pa"te )otion to 'd.it Co".al '.end.ent to t+e Co.,laint and Issuance o% 'lias Su..ons- Petitione" alle*ed t+at u,on e"i%ication !it+ t+e SEC, s+e %ound out t+at t+e "esident a*ent o% "es,ondent in t+e P+ili,,ines is 'lonHo P- 'nc+etaSubse?uently, ,etitione" %iled a )otion to Resol e Pendin* Incident and O,,osition to )otion to Dis.issISSUE2 .hether 5ritish Airways, in filing its motion to dismiss may be deemed as having in fact and in law submitted itself to the /urisdiction of the lower court, NO2 &+e Wa"sa! Con ention +as t+e %o"ce and e%%ect o% la! in t+is count"y- &+e Wa"sa! Con ention a,,lies because t+e ai" t"a el, !+e"e t+e alle*ed to"tious conduct occu""ed, !as bet!een t+e United Ain*do. and Italy, !+ic+ a"e bot+ si*nato"ies to t+e Wa"sa! Con ention- Since t+e Wa"sa! Con ention a,,lies in t+e instant case, t+en t+e 3u"isdiction o e" t+e sub3ect .atte" o% t+e action is *o e"ned by t+e ,"o isions o% t+e Wa"sa! Con entionRes,ondent, in see6in* "e.edies %"o. t+e t"ial cou"t t+"ou*+ s,ecial a,,ea"ance o% counsel, is not dee.ed to +a e olunta"ily sub.itted itsel% to t+e 3u"isdiction o% t+e t"ial cou"t- &+us, a de%endant !+o %iles a .otion to dis.iss, assailin* t+e 3u"isdiction o% t+e cou"t o e" +is ,e"son, to*et+e" !it+ ot+e" *"ounds "aised t+e"ein, is not dee.ed to +a e a,,ea"ed olunta"ily be%o"e t+e cou"t- W+at t+e "ule on olunta"y a,,ea"ance .eans is t+at t+e olunta"y a,,ea"ance o% t+e de%endant in cou"t is !it+out ?uali%ication, in !+ic+ case +e is dee.ed to +a e !ai ed +is de%ense o% lac6 o% 3u"isdiction o e" +is ,e"son due to i.,"o,e" se" ice o% su..ons' s,ecial a,,ea"ance be%o"e t+e cou"tOO c+allen*in* its 3u"isdiction o e" t+e ,e"son t+"ou*+ a .otion to dis.iss e en i% t+e .o ant in o6es ot+e" *"oundsOOis not tanta.ount to esto,,el o" a !ai e" by t+e .o ant o% +is ob3ection to 3u"isdiction o e" +is ,e"son9 and suc+ is not constituti e o% a olunta"y sub.ission to t+e 3u"isdiction o% t+e cou"tIn t+is case, t+e s,ecial a,,ea"ance o% t+e counsel o% "es,ondent in %ilin* t+e )otion to Dis.iss and ot+e" ,leadin*s be%o"e t+e t"ial cou"t cannot be dee.ed to be olunta"y sub.ission to t+e 3u"isdiction o% t+e said t"ial cou"tReturn !f service W+en t+e se" ice +as been co.,leted, t+e se" e" s+all, /10 !it+in %i e />0 days t+e"e%"o., /40 se" e a co,y o% t+e "etu"n, ,e"sonally o" by "e*iste"ed .ail, to t+e ,lainti%%s counsel, and /50 s+all "etu"n t+e su..ons to t+e cle"6 !+o issued it, /:0 acco.,anied by ,"oo% o% se" ice- /Sec- :, Rule 1:0 Pr!!f !f service &+e ,"oo% o% se" ice o% a su..ons s+all be /10 .ade in !"itin* by t+e se" e" and /40 s+all set %o"t+ t+e .anne", ,lace, and date o% se" ice9

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER=4

/50 s+all s,eci%y any ,a,e"s !+ic+ +a e been se" ed !it+ t+e ,"ocess and /:0 t+e na.e o% t+e ,e"son !+o "ecei ed t+e sa.e9 and />0 s+all be s!o"n to !+en .ade by a ,e"son ot+e" t+an a s+e"i%% o" +is de,uty- /Sec- 1F, Rule 1:0 Pub icati!n I% t+e se" ice +as been .ade by ,ublication, se" ice .ay be ,"o ed by /10 t+e a%%ida it o% t+e ,"inte", +is %o"e.an o" ,"inci,al cle"6, o" o% t+e edito", business o" ad e"tisin* .ana*e", /40 an attac+ed co,y o% t+e ,ublication, and /50 an a%%ida it s+o!in* t+e de,osit o% a co,y o% t+e su..ons and o"de" %o" ,ublication in t+e ,ost o%%ice, ,osta*e ,"e,aid, di"ected to t+e de%endant by "e*iste"ed .ail to +is last 6no!n add"ess/Sec- 1#, Rule 1:0

/40 )otion %o" ne! t"ial, o" %o" "econside"ation o% a 3ud*.ent, o" %o" "eo,enin* o% t"ial9 /50 Petition %o" "elie% %"o. 3ud*.ent9 /:0 )otion %o" e8tension o% ti.e to %ile ,leadin*s, a%%ida its and ot+e" ,a,e"s9 />0 )e.o"anda9 /=0 Petition %o" certiorari, and mandamus o" ,"o+ibition a*ainst an inte"locuto"y o"de" o% t+e cou"t9 /$0 )otion to decla"e t+e de%endant in de%ault9 /F0 Dilato"y .otions %o" ,ost,one.ent /#0 Re,ly9 /1D0 &+i"d7,a"ty co.,laints9 /110 Inte" entions&+e %ollo!in* a"e ,"o+ibited in S.all Clai.s Cases2 /10 )otion to dis.iss t+e co.,laint, e8ce,t on *"ound o% lac6 o% 3u"isdiction /40 )otion %o" bill o% ,a"ticula"s9 /50 )otion %o" ne! t"ial, o" %o" "econside"ation o% a 3ud*.ent, o" %o" "eo,enin* o% t"ial9 /:0 Petition %o" "elie% %"o. 3ud*.ent9 />0 )otion %o" e8tension o% ti.e to %ile ,leadin*s, a%%ida its and ot+e" ,a,e"s9 /=0 )e.o"anda9 /$0 Petition %o" certiorari, and mandamus o" ,"o+ibition a*ainst an inte"locuto"y o"de" o% t+e cou"t9 /F0 )otion to decla"e t+e de%endant in de%ault9 /#0 Dilato"y .otions %o" ,ost,one.ent /1D0 Re,ly9 /110 &+i"d7,a"ty co.,laints9 /140 Inte" entionsC!ntents ' .otion s+all /10 state t+e "elie% sou*+t to be obtained /40 t+e *"ounds u,on !+ic+ it is based, and /50 s+all be acco.,anied by su,,o"tin* a%%ida its and ot+e" ,a,e"s, i% "e?ui"ed by t+ese Rules or necessa"y to ,"o e %acts alle*ed t+e"ein- /Sec- 5, Rule 1>0 Omnibus m!ti!n ru e ' .otion attac6in* a ,leadin*, o"de", 3ud*.ent, o" ,"oceedin* s+all include all ob/ections t+en a ailable, and all ob/ections not so included s+all be dee.ed !ai ed/Sec- F, Rule 1>0

-O1IONS &RULE '9( In $enera ' motion is an a,,lication %o" "elie% ot+e" t+an by a ,leadin*- /Sec- 1, Rule 1>0 ,!rm )eneral rule* 'll .otions s+all be in !"itin*+,ce%tions* /10 )otions .ade in o,en cou"t or /40 )otions .ade in t+e cou"se o% a +ea"in* o" t"ial/Sec- 4, Rule 1>0 %enera . &+e Rules a,,licable to ,leadin*s s+all a%%ly to !"itten .otions so %a" as conce"ns /10 ca,tion, /40 desi*nation, /50 si*natu"e, and /:0 ot+e" .atte"s o% %o".- /Sec- 1D, Rule 1>0 -a. be !ra )eneral rule* 'll .otions s+all be in !"itin*+,ce%tion )otions .ade in o,en cou"t o" in t+e cou"se o% a +ea"in* o" t"ial- /Sec- 4, Rule 1>0

-!ti!n f!r eave ' motion for leave to %ile a ,leadin* o" .otion s+all be acco.,anied by t+e ,leadin* o" .otion sou*+t to be ad.itted- /Sec- #, Rule 1>0 Pr!+ibited m!ti!n &+e %ollo!in* ,leadin*s and .otions a"e ,"o+ibited in a su..a"y ,"ocedu"e2 /10 )otion to dis.iss e8ce,t on t+e *"ound o% lac6 o% 3u"isdiction o e" sub3ect .atte" and %ailu"e to co.,ly !it+ ba"an*ay conciliation ,"oceedin*s9
)E(DE@, IV'( VIA&OR /4D, 150

E3ce#ti!ns &+e cou"t s+all dis.iss t+e clai. !+en it a,,ea"s %"o. t+e ,leadin*s o" t+e e idence on "eco"d t+at /10 t+e cou"t +as no 3u"isdiction o e" t+e sub3ect .atte", /40 t+e"e is anot+e" action ,endin* bet!een t+e sa.e ,a"ties %o" t+e sa.e cause, o" t+at /50 t+e action is ba""ed by a ,"io" 3ud*.ent o" /:0 ba""ed by t+e statute o% li.itations/Sec- 1, Rule #0

CIVIL PROCEDURE REVIEWER=5

N!tice !f +earin$ )eneral !ule* E e"y !"itten .otion s+all be set %o" +ea"in* by t+e a,,licant+,ce%tion2 )otions !+ic+ t+e cou"t .ay act u,on !it+out ,"e3udicin* t+e "i*+ts o% t+e ad e"se ,a"ty/Sec- :, Rule 1>0 (O&E2 E e"y !"itten .otion "e?ui"ed to be +ea"d and t+e notice o% t+e +ea"in* t+e"eo% s+all be se" ed /10 in suc+ a .anne" as to ensu"e its "ecei,t by t+e ot+e" ,a"ty /40 at least t+"ee /50 days be%o"e t+e date o% +ea"in*, unless t+e cou"t for good cause sets t+e +ea"in* on s+o"te" notice0otice of hearing&+e notice of hearing s+all be /10 add"essed to all ,a"ties conce"ned, and /40 s+all s,eci%y t+e ti.e and date o% t+e +ea"in* !+ic+ .ust not be later t+an ten /1D0 days after the filing o% t+e .otion- /Sec- >, Rule 1>0 %enera ru eG wit+!ut c!m# iance D scra# !f #a#er ' .otion !+ic+ does not .eet t+e "e?ui"e.ents o% Sections : and > o% Rule 1> is a .e"e sc"a, o% ,a,e" !+ic+ t+e cle"6 o% cou"t +as not "i*+t to "ecei e and t+e t"ial cou"t +as no aut+o"ity to act u,onDefective n!tice !f +earin$ *ICTOR. LINER INC. v. MALINIAS (!00'" Unde" Sections > and = o% Rule 1>, t+e notice o% +ea"in* s+all be add"essed to t+e ,a"ties conce"ned and s+all s,eci%y t+e ti.e and date o% t+e +ea"in* o% t+e .otion9 no .otion s+all be acted u,on by t+e cou"t !it+out ,"oo% o% se" ice o% t+e notice t+e"eo%, e8ce,t !+en t+e cou"t is satis%ied t+at t+e "i*+ts o% t+e ad e"se ,a"ty a"e not a%%ected-

t+e )&C "uled in %a o" o% "es,ondent )alinias, o"de"in* VLI to ,ay +i.VLIs ne! counsel %iled a )otion %o" Reconside"ation- &+e (otice o% Bea"in* t+e"ein stated2 QPlease sub.it t+e %o"e*oin* )otion %o" Reconside"ation %o" +ea"in* be%o"e t+e C' at a sc+edule and ti.e con enient to t+e Cou"t and t+e ,a"ties-K &+e )&C "uled t+at t+e notice did not con%o". !it+ t+e .andato"y "e?ui"e.ents o% Section >, Rule 1>, and t+at t+e .otion !as t+us a .e"e sc"a, o% ,a,e" !+ic+ did not sus,end t+e ,e"iod to a,,ealPetitione" VLI t+e"ea%te" %iled a (otice o% ',,eal and a .otion %o" t+e in+ibition by t+e )&C, !+ic+ !as *"anted- &+e case !as assi*ned to a ne! )&C 3ud*e, !+o !as tas6ed to "ule on t+e (otice o% ',,eal- &+e )&C "uled t+at it +ad been %iled beyond t+e "e*le.enta"y ,e"iod'*ain, t+e )&C "eite"ated its initial 3ud*.ent in %a o" o% )alinias since t+e %atally de%ecti e )R did not toll t+e "e*le.enta"y ,e"iod %o" a,,eal&+e R&C a%%i".ed t+e 3ud*.ent o% t+e )&C and +eld t+e decision %inal and e8ecuto"yISSUE2 .hether the 0otice of Fearing filed was defective 6ES2 &+e .ost c"ucial %ailu"e on t+e ,a"t o% ,etitione" !as to %ile a )otion %o" Reconside"ation o% t+e )&C Jud*.ent !+ic+ contained a de%ecti e (otice o% Bea"in*, %ailin* as it did to set a date %o" +ea"in*- Unde" Sections > and = o% Rule 1>, t+e notice o% +ea"in* s+all be add"essed to t+e ,a"ties conce"ned and s+all s,eci%y t+e ti.e and date o% t+e +ea"in* o% t+e .otion9 no .otion s+all be acted u,on by t+e cou"t !it+out ,"oo% o% se" ice o% t+e notice t+e"eo%, e8ce,t !+en t+e cou"t is satis%ied t+at t+e "i*+ts o% t+e ad e"se ,a"ty a"e not a%%ected- Unless t+e .o ant sets t+e ti.e and ,lace o% +ea"in*, t+e cou"t !ill be unable to dete".ine !+et+e" t+e ad e"se ,a"ty a*"ees o" ob3ects to t+e .otion, and i% +e ob3ects, to +ea" +i. on +is ob3ection, since t+e "ules t+e.sel es do not %i8 any ,e"iod !it+in !+ic+ +e .ay %ile +is "e,ly o" o,,osition(ot only did t+e de%ect "ende" t+e .otion %o" "econside"ation itsel% un!o"t+y o% conside"ation, it .o"e c"ucially %ailed to toll t+e ,e"iod to a,,eal- ' .otion !it+out a notice o% +ea"in* is %ro forma, a .e"e sc"a, o% ,a,e" t+at does not toll t+e ,e"iod to a,,eal, and u,on t+e e8,i"ation o% t+e 1>7day ,e"iod, t+e ?uestioned o"de" o" decision beco.es %inal and e8ecuto"y&+at did not .ean t+at ,etitione" !as le%t be"e%t o% %u"t+e" "e.edies unde" ou" Rules- Co" one, ,etitione" could +a e assailed t+e )&Cs denial o% t+e )otion %o" Reconside"ation t+"ou*+ a s,ecial ci il action %o" ce"tio"a"i unde" Rule => alle*in* *"a e abuse o% disc"etion a.ountin* to lac6 o% 3u"isdiction on t+e ,a"t o% t+e )&C in denyin* t+e .otion- I% t+at "e.edy !e"e success%ul, t+e e%%ect !ould +a e been to oid t+e )&Cs denial o% t+e )otion %o" Reconside"ation, t+us allo!in* ,etitione" to a*ain ,u"sue suc+ .otion as a .eans to!a"ds t+e %ilin* o% a ti.ely a,,eal'not+e" "e.edy %o" t+e ,etitione" is %ound unde" Rule 5F, !+ic+ *o e"ns ,etitions %o" "elie% %"o. 3ud*.entIndeed, Section 4, Rule 5F %inds s,eci%ic a,,lication in t+is case, as it ,"o ides t+at Q;!<+en a 3ud*.ent o" %inal o"de" is "ende"ed by any cou"t in a case, and a ,a"ty t+e"eto, by %"aud, accident, .ista6e, o" e8cusable ne*li*ence, +as been

C'C&S2 ' e+icula" collision +a,,ened bet!een ,etitione" Victo"y Line", Inc- /VLI0 and an IsuHu &"uc6 used by "es,ondent )ic+ael )alinias- (o one died, but bot+ e+icles !e"e da.a*ed- )alinias %iled a co.,laint %o" da.a*es a*ainst ,etitione" and t+e bus d"i e", Leoncio Bulaon* !it+ t+e )&C, alle*in* ,ecunia"y da.a*e to t+e t"uc6 !o"t+ P:$,1FD "e,"esentin* lost inco.e %o" t+e non7 use o% t+e t"uc6- '%te" ,"e7t"ial, t+e bus d"i e" !as d"o,,ed as de%endant in t+e caseDu"in* t"ial, "es,ondent %inis+ed ,"esentin* +is e idence and "ested +is case- Counsel %o" ,etitione" VLI %iled a .otion to !it+d"a! as counsel, but t+e sa.e !as denied- W+en t+e case !as called %o" "ece,tion o% ,etitione"s e idence, no a,,ea"ance !as .ade %o" t+e bus co.,any- Res,ondent t+us .o ed t+at ,etitione" be decla"ed to +a e !ai ed its "i*+t to adduce e idence in its %a o"- &+e case !as dee.ed sub.itted %o" 3ud*.ent and
)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER=:

,"e ented %"o. ta6in* an a,,eal, +e .ay %ile a ,etition ;%o" "elie% %"o. denial o% a,,eal< in suc+ cou"t and in t+e sa.e case ,"ayin* t+at t+e a,,eal be *i en due cou"se-Q 5= Suc+ ,etition s+ould be %iled !it+in si8ty /=D0 days a%te" t+e ,etitione" lea"ns o% t+e 3ud*.ent o" %inal o"de", and not .o"e t+an si8 /=0 .ont+s a%te" suc+ 3ud*.ent o" %inal o"de" !as ente"ed- &+e %acts o% t+is case indicate t+at ,etitione" could +a e ti.ely "eso"ted to t+is "e.edyE3ce#ti!ns -!ti!ns w+ic+ ma. be $ranted e6 p789e 'n e, %arte motion does not "e?ui"e t+at ,a"ties be +a"d'n e8a.,le is a .otion to set t+e case %o" ,"e7t"ial(O&E2 ' .otion to dis.iss, a .otion %o" 3ud*.ent on t+e ,leadin*s, and a su..a"y 3ud*.ent a"e liti*ated .otionsW+ere adverse #art. +ad !##!rtunit. t! !##!se LANTO v. DIMA#ORO ((6 SCRA 5%% (%66" E8istence o% a cause o% action o" lac6 o% it is dete".ined by a "e%e"ence to t+e %acts a e""ed in t+e c+allen*ed ,leadin*- &+e ?uestion "aised in t+e .otion is ,u"ely one o% la!- In t+is ,ostu"e, o"al a"*u.ents on t+e .otion a"e "educed to an unnecessa"y ce"e.ony and s+ould be o e"loo6ed-

"e*ula"ity !it+in t+e actions o% t+e cou"t !it+ "e*a"d to ente"tainin* .otions- In t+e case at ba", ,etitione" %ailed to s+o! i""e*ula"ity !it+in t+e cou"ts*LASON ENTER#RISES COR# v. CA (&&0 SCRA !6 (%%%" /10 W+e"e t+e counsel %ailed ob3ect on t+e *"ound o% lac6 o% notice to a )otion add"essed to a %o".e" counsel, and !as *"anted by t+e t"ial cou"t 5D days to %ile +is o,,osition to it, t+e ci"cu.stances clea"ly 3usti%y a de,a"tu"e %"o. t+e lite"al a,,lication o% t+e notice o% +ea"in* "ule/40 &+e issuance o% an o"de" o% de%ault is a condition sine 3ua non in o"de" t+at a 3ud*.ent by de%ault be clot+ed !it+ alidityCu"t+e".o"e, it is a le*al i.,ossibility to decla"e a ,a"ty7de%endant to be in de%ault be%o"e it !as alidly se" ed su..onsC'C&S2 Du"a,"oo% sou*+t to en%o"ce its ,"e%e""ed sal o"s lien by %ilin* !it+ t+e R&C a ,etition %o" certiorari, ,"o+ibition and mandamus assailin* t+e actions o% t+e Custo.s O%%ice"s in %o"%eitin* t+e essel and ca"*o o!ned by O.e*a, !+ic+ Du"a,"oo% cont"acted to "e,ai"- It i.,leaded PP' and )ed Line P+ili,,ines, Inc- as "es,ondentsDu"a,"oo% a.ended its ,etition to include t+e %o".e" Dist"ict Collecto", and ot+e" co.,anies in ol ed, includin* Vlason Ente","ises- In bot+ Petitions, Du"a,"oo% %ailed to alle*e anyt+in* ,e"tainin* to Vlason Ente","ises, o" any ,"aye" %o" "elie% a*ainst itSu..onses %o" t+e a.ended Petition !e"e se" ed- Du"a,"oo% .o ed se e"al ti.es to decla"e t+e "es,ondents it i.,leaded in de%ault- Out o% t+ose "es,ondents, only t+e %ollo!in* !e"e decla"ed by R&C in de%ault2 t+e Sin*6on* &"adin* Co-, Co..issione" )ison, MJ@ $tar Ace and O.e*a- Du"a,"oo% %iled an e, %arte )otion to ,"esent e idence a*ainst t+e de%aultin* "es,ondents, !+ic+ !as *"antedDu"a,"oo% alle*ed t+at Vlason Ente","ises, t+"ou*+ constant inti.idation and +a"ass.ent in utiliHin* t+e PP' )ana*e.ent o% La Union, caused Du"a,"oo% to incu" +ea y o e"+ead e8,enses, causin* i""e,a"able da.a*es o% about P5 )illion !o"t+ o% s+i, tac6les, "i*s, and a,,u"tenances includin* "ada" antennas and a,,a"atuses, !+ic+ !e"e ta6en su""e,titiously by ,e"sons !o"6in* %o" Vlason Ente","ises o" its a*ents&+e R&C "uled t+at in %a o" o% Du"a,"oo% and o"de"ed Vlason to ,ay P5 )illion !o"t+ o% da.a*esDu"a,"oo% and t+e ot+e" co.,anies ente"ed into a co.,"o.ise a*"ee.ent, e8ce,t Vlason- Du"a,"oo% .o ed %o" t+e e8ecution o% 3ud*.ent- &+e )otion !as *"anted and a W"it o% E8ecution !as issuedVlason Ente","ises %iled a )otion %o" Reconside"ation add"essed to Du"a,"oo%s counsel, 'ttyConce,cion, on t+e *"ound t+at it !as alle*edly not i.,leaded as a de%endant, se" ed su..ons o" decla"ed in de%ault, and +ence Du"a,"oo% .ay not ,"esent e idence a*ainst it in de%ault- Du"a,"oo% o,,osed t+e )otion,

C'C&S2 Resolution (o- $, ado,ted by t+e P"o incial Boa"d o% Lanao del (o"te, "e e"ted a ,"e ious sala"y a,,"o,"iation %o" t+e ,osition o% 'ssistant P"o incial 'ssesso" to t+e *ene"al %und- In e%%ect, t+at ,osition t+en +eld by ,etitione" !as t+en abolis+ed- Be sou*+t "elie% to a"ious *o e"n.ent o%%icials, includin* t+e P"esident but !as disa,,ointed- Be t+en !ent to t+e cou"t see6in* .anda.us ,"ayin* %o" annul.ent o% t+e "esolution, ,ay.ent o% bac6!a*es, "estate.ent o% sala"y a,,"o,"iations as !ell as "einstate.entRes,ondents .o ed to dis.iss statin* lac6 o% cause o% action- Petitione"s counsel .o ed to ,ost,one t+e +ea"in*, but %ailed to a,,ea"- &+e cou"t belo! *"anted suc+ .otion and dis.issed said ,etition- Bence t+is a,,ealISSUE2 .hether the dismissal order issued without any hearing on the motion to dismiss is void NO2 Petitione" !as *i en t+e c+ance to adduce +is case, yet it is because o% +is constant absences t+at +e !as unable to ,"esent +is a"*u.ents- One *ood "eason %o" t+e statuto"y "e?ui"e.ent o% +ea"in* on a .otion is to enable t+e suito"s to adduce e idence to su,,o"t t+ei" clai.s- But +e"e t+e )otion to Dis.iss is *"ounded on t+e lac6 o% cause o% action- E8istence o% a cause o% action o" lac6 o% it is dete".ined by a "e%e"ence to t+e %acts a e""ed in t+e c+allen*ed ,leadin*- &+e ?uestion "aised in t+e .otion is ,u"ely one o% la!- In t+is ,ostu"e, o"al a"*u.ents on t+e .otion a"e "educed to an unnecessa"y ce"e.ony and s+ould be o e"loo6ed- &+e +ea"in* %o" t+e )otion to Dis.iss !as set, yet t+e ,etitione" %ailed to a,,ea" /only +is counsel s+o!ed u,0- )o"eo e", !it+out any clea" s+o!in* to t+e cont"a"y, t+e"e is a ,"esu.,tion o%
)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER=>

a"*uin* t+at it !as a .e"e sc"a, o% ,a,e" due to its de%ecti e notice o% +ea"in*R&C "e e"sed its Decision, %indin* t+at t+e"e ne e" !as issued an o"de" o% de%ault a*ainst Vlason Ente","ises, so t+e"e could not +a e been any alid de%ault7 3ud*.ent "ende"ed a*ainst it&+e C' "uled t+at t+e"e !as no need to se" e su..ons ane! on Vlason Ente","ises, since it +ad been se" ed su..ons !+en t+e second a.ended ,etition !as %iled9 and t+at Vlason Ente","isess )otion %o" Reconside"ation !as de%ecti e and oid, because it contained no notice o% +ea"in* add"essed to t+e counsel o% Du"a,"oo% in iolation o% Rule 1=, Section : o% t+e Rules o% Cou"tISSUE2 .hether the motion for reconsideration filed by @lason was void for not containing a notice of hearing to Dura%roofBs counsel NO2 &+e )otion contained a notice o% +ea"in* sent to 'tty- Conce,cion !+o +ad al"eady died and +ad since been substituted by Du"a,"oo%s ne! counsel, 'ttyDesie"to- 'lt+ou*+ Rule 1> o% t+e Rules o% Cou"t "e?ui"es Vlason Ente","ises to add"ess and to se" e on t+e counsel o% Du"a,"oo% t+e notice o% +ea"in* o% t+e )otion %o" Reconside"ation, t+e case at ba", +o!e e", is %a" %"o. idealFirst, Vlason Ente","ises !as not alidly su..oned and it did not ,a"tici,ate in t+e t"ial o% t+e case in t+e lo!e" cou"t9 t+us, it !as unde"standable t+at Vlason Ente","ises !ould not be %a.ilia" !it+ t+e ,a"ties and t+ei" counsels- $econd, 'tty- Desie"to ente"ed +is a,,ea"ance only as collabo"atin* counsel, !+o is no".ally not entitled to notices e en %"o. t+is Cou"t- 4hird, Du"a,"oo% .ade no .ani%estation on "eco"d t+at 'tty- Conce,cion !as al"eady dead- Besides, it !as 'tty- Conce,cion !+o si*ned t+e '.ended Petition, !+e"ein Vlason Ente","ises !as %i"st i.,leaded as "es,ondent and se" ed a co,y t+e"eo%- (atu"ally, Vlason Ente","isess attention !as %ocused on t+is ,leadin*, and it !as !it+in its "i*+ts to assu.e t+at t+e si*nato"y to suc+ ,leadin* !as t+e counsel %o" Du"a,"oo%&+e Cou"t +as consistently +eld t+at a .otion !+ic+ does not .eet t+e "e?ui"e.ents o% Sections : and > o% Rule 1> o% t+e Rules o% Cou"t is conside"ed a !o"t+less ,iece o% ,a,e", !+ic+ t+e cle"6 o% cou"t +as no "i*+t to "ecei e and t+e t"ial cou"t +as no aut+o"ity to act u,onBo!e e", t+e"e a"e e8ce,tions to t+e st"ict a,,lication o% t+is "ule- &+ese e8ce,tions include2 G/10 !+e"e a "i*id a,,lication !ill "esult in a .ani%est %ailu"e o" .isca""ia*e o% 3ustice9 es,ecially i% a ,a"ty success%ully s+o!s t+at t+e alle*ed de%ect in t+e ?uestioned %inal and e8ecuto"y 3ud*.ent is not a,,a"ent on its %ace o" %"o. t+e "ecitals contained t+e"ein-K &+e ,"esent case %alls unde" suc+ e8ce,tion since Vlason Ente","ises !as not in%o".ed o% any cause o% action o" clai. a*ainst it- 'll o% a sudden, t+e essels !+ic+ Vlason Ente","ises used in its sal a*in* business !e"e le ied u,on and sold in e8ecution to satis%y a su,,osed 3ud*.ent a*ainst it- &o allo! t+is to +a,,en si.,ly because o% a la,se in %ul%illin* t+e notice "e?ui"e.ent !+ic+, as al"eady said, !as satis%acto"ily e8,lained !ould be a .ani%est %ailu"e o" .isca""ia*e o% 3usticeCi"cu.stances in t+e case at ba" s+o! t+at Du"a,"oo% !as not denied ,"ocedu"al due ,"ocess, and t+at
)E(DE@, IV'( VIA&OR /4D, 150

t+e e"y ,u",ose o% a notice o% +ea"in* +ad been se" edOn t+e day o% t+e +ea"in*, 'tty- Desie"to did not ob3ect to t+e said )otion %o" lac6 o% notice to +i.9 in %act, +e !as %u"nis+ed in o,en cou"t !it+ a co,y o% t+e .otion and !as *"anted by t+e t"ial cou"t t+i"ty days to %ile +is o,,osition to it- &+ese ci"cu.stances clea"ly 3usti%y a de,a"tu"e %"o. t+e lite"al a,,lication o% t+e notice o% +ea"in* "ule- In ot+e" cases, a%te" t+e t"ial cou"t lea"ns t+at a .otion lac6s suc+ notice, t+e ,"o.,t "esettin* o% t+e +ea"in* !it+ due notice to all t+e ,a"ties is +eld to +a e cu"ed t+e de%ectPr!!f !f service (o !"itten .otion set %o" +ea"in* s+all be acted u,on by t+e cou"t !it+out ,"oo% o% se" ice t+e"eo%- /Sec- =, Rule 1>0 =earin$ !f m!ti!n )eneral rule* 'll .otions s+all be sc+eduled %o" +ea"in* on C"iday a%te"noons, o" i% C"iday is a non7!o"6in* day, in t+e a%te"noon o% t+e ne8t !o"6in* day +,ce%tion2 )otions "e?ui"in* i..ediate action- /Sec- $, Rule 1>0

-O1ION 1O DIS-ISS &RULE '?( ,!ur $enera t.#es !f m!ti!n t! dismiss under t+e Ru es &'( -!ti!n t! dismiss bef!re answer &Ru e '?( &5( -!ti!n t! dismiss b. # aintiff &Ru e ';( &7( -!ti!n t! dismiss !n demurrer t! evidence after # aintiff +as rested +is case &Ru e 77( &A( -!ti!n t! dismiss a##ea eit+er in R1C &Sec2 7'" Ru e A'(" CA &Sec2 '" Ru e 9@( !r SC &Sec2 9" Ru e 9?( %r!unds ' .otion to dis.iss .ay be .ade on any o% t+e %ollo!in* *"ounds2 /a0 &+at t+e cou"t +as no 3u"isdiction o e" t+e ,e"son o% t+e de%endin* ,a"ty9 /b0 &+at t+e cou"t +as no 3u"isdiction o e" t+e sub3ect .atte" o% t+e clai.9 /c0 &+at enue is i.,"o,e"ly laid9 /d0 &+at t+e ,lainti%% +as no le*al ca,acity to sue9 /e0 &+at t+e"e is anot+e" action ,endin* bet!een t+e sa.e ,a"ties %o" t+e sa.e cause9 /%0 &+at t+e cause o% action is ba""ed by a ,"io" 3ud*.ent o" by t+e statute o% li.itations9 /*0 &+at t+e ,leadin* asse"tin* t+e clai. states no cause o% action9 /+0 &+at t+e clai. o" de.and set %o"t+ in t+e ,lainti%%s ,leadin* +as been ,aid, !ai ed, abandoned, o" ot+e"!ise e8tin*uis+ed9 /i0 &+at t+e clai. on !+ic+ t+e action is %ounded is unen%o"ceable unde" t+e ,"o isions o% t+e statute o% %"auds9 and /30 &+at a condition ,"ecedent %o" %ilin* t+e clai. +as not been co.,lied !it+Lac* !f 4urisdicti!n

CIVIL PROCEDURE REVIEWER==

BOTICANO v. CHU ((4) SCRA 54( (%)'" De%ect in se" ice o% su..ons cannot be "aised %o" t+e %i"st ti.e on a,,eal- De%ects in 3u"isdiction a"isin* %"o. i""e*ula"ities in t+e co..ence.ent o% t+e ,"oceedin*s, de%ecti e ,"ocess o" e en absence o% ,"ocess .ay be !ai ed by a %ailu"e to .a6e seasonable ob3ectionsC'C&S2 W+ile loaded !it+ lo*s, and ,"o,e"ly ,a"6ed by its d"i e" )a8i.o Dalan*in at t+e s+oulde" o% t+e national +i*+!ay in (ue a Eci3a, Boticanos Bed%o"d t"uc6 !as +it and bu.,ed at t+e "ea" by anot+e" Bed%o"d t"uc6 o!ned by ,"i ate "es,ondent C+u, J"- and d"i en by Si*ua, t+e %o".e"s co7de%endant in t+e case- C+u a*"eed to s+oulde" t+e e8,enses o% t+e "e,ai" o% t+e da.a*ed t"uc6 o% t+e latte", but +e %ailed to ,ay t+e sa.eSu..ons !as issued but !as "etu"ned unse" ed because Si*ua !as no lon*e" connected !it+ San Ped"o Sa! )ill, !+ile C+u !as ,"o,e"ly se" ed t+"ou*+ t+e "ecei,t by +is !i%e o% suc+ su..onsBoticano .o ed to dis.iss t+e case a*ainst Si*ua and to decla"e C+u in de%ault %o" %ailu"e to %ile "es,onsi e ,leadin*s !it+in t+e "e*le.enta"y ,e"iod- &+e .otion !as *"anted by t+e lo!e" cou"t allo!in* ,etitione" to adduce +is e idence e, %arte- &+e R&C %ound C+u "es,onsible %o" t+e %ault o% +is d"i e"C+u %iled a notice o% a,,eal and a .otion to e8tend to %ile +is "eco"d on a,,eal- Boticano .otioned to dis.iss t+e a,,eal, !+ic+ C+us counsel o,,osed- In t+e end, C+us "eco"d on a,,eal !as a,,"o ed- &+e case !as b"ou*+t to t+e C', !+ic+ set aside t+e R&C and "e.anded t+e case to t+e cou"t o% o"i*in %o" su..ons to be ,"o,e"ly se" ed on C+u and %o" ,"oceedin*s to be ta6en- On a,,eal, Boticano ?uestioned t+e C's "ulin* t+at 3u"isdiction o e" C+us ,e"son !as not ac?ui"edISSUE2 .hether the 3uestion of /urisdiction over the %erson of the defendant can be raised for the first time on a%%eal NO2 Bo!e e", one o% t+e ci"cu.stances conside"ed by t+e Cou"t as indicati e o% !ai e" by de%endant7a,,ellant o% any alle*ed de%ect i% 3u"isdiction o e" +is ,e"son a"isin* %"o. de%ecti e o" e en !ant o% ,"ocess, is +is %ailu"e to "aise t+e ?uestion o% 3u"isdiction in t+e CCI and at t+e %i"st o,,o"tunity- De%ects in 3u"isdiction a"isin* %"o. i""e*ula"ities in t+e co..ence.ent o% t+e ,"oceedin*s, de%ecti e ,"ocess o" e en absence o% ,"ocess .ay be !ai ed by a %ailu"e to .a6e seasonable ob3ectionsDu"in* t+e sta*es o% t+e ,"oceedin*s, in t+e case at ba", de%endant7a,,ellant could +a e ?uestioned t+e 3u"isdiction o% t+e lo!e" cou"t- But +e did not- C+u +e"e +ad olunta"ily sub.itted +i.sel% to t+e cou"ts 3u"isdiction&+us, 3u"isdiction !as ,"o,e"ly ac?ui"ed by t+e t"ial cou"t o e" t+e ,e"son o% "es,ondent t+"u bot+ se" ice o% su..ons and olunta"y a,,ea"ance in cou"t9 +e !as ,"o,e"ly decla"ed in de%ault %o" not +a in* %iled any ans!e"9 des,ite "es,ondents %ailu"e to %ile a .otion to set aside t+e decla"ation o% de%ault, +e +as t+e "i*+t to a,,eal t+e de%ault o% 3ud*.ent but in t+e a,,eal only t+e e idence
)E(DE@, IV'( VIA&OR /4D, 150

o% t+e ,etitione" .ay be conside"ed, "es,ondent not +a in* adduced any de%ense e idenceRes 4udicata DEL ROSARIO v. FEBTC (5&' SCRA 5'( !00'" Res 3udicata Gba" by ,"io" 3ud*.ent,K as a *"ound to dis.iss t+e case +as %ou" essential "e?uisites2 a0 %inality o% t+e %o".e" 3ud*.ent9 b0 t+e cou"t !+ic+ "ende"ed it +ad 3u"isdiction o e" t+e sub3ect .atte" and t+e ,a"ties9 c0 it .ust be a 3ud*.ent on t+e .e"its9 and d0 t+e"e .ust be, bet!een t+e %i"st and second actions, identity o% ,a"ties, sub3ect .atte" and causes o% actionC'C&S2 PDCP e8tended a P:-: .illion loan to D'&ICOR, !+ic+ sti,ulated t+at D'&ICOR s+all ,ay2 a se" ice %ee o% 1L ,e" annu. /late" inc"eased =L ,e" annu.0 on t+e outstandin* balance9 14L ,e" annu. inte"est9 and ,enalty c+a"*es 4L ,e" .ont+ in case o% de%ault- &+e loans !e"e secu"ed by "eal estate .o"t*a*es o e" si8 /=0 ,a"cels o% land and c+attel .o"t*a*es o e" .ac+ine"y and e?ui,.entD'&ICOR ,aid a total o% P5 .illion to PDCP, !+ic+ t+e latte" a,,lied to inte"est, se" ice %ees and ,enalty c+a"*es- &+is le%t t+e. !it+ an outstandin* balance o% P1D .illion, acco"din* to PDCPs co.,utationD'&ICOR %iled a co.,laint a*ainst PDCP %o" iolation o% t+e Usu"y La! and annul.ent o% cont"act and da.a*es- &+e CCI dis.issed t+e co.,laint- &+e I'C set aside t+e dis.issal and decla"ed oid and o% no e%%ect t+e sti,ulation o% inte"est in t+e loan a*"ee.ent- PDCP a,,ealed t+e I'CMs decision to SCIn t+e inte"i., PDCP assi*ned a ,o"tion o% its "ecei ables %"o. D'&ICOR to CEB&C %o" o% P>-: )CEB&C and D'&ICOR, in a )O', a*"eed to P=-: .illion as %ull settle.ent o% t+e "ecei ablesSC a%%i".ed in toto t+e decision o% t+e I'C, nulli%yin* t+e sti,ulation o% inte"ests- D'&ICOR t+us %iled a Co.,laint %o" su. o% .oney a*ainst PDCP and CEB&C to "eco e" t+e e8cess ,ay.ent !+ic+ t+ey co.,uted to be P>-5 .illion- R&C o"de"ed PDCP to ,ay ,etitione"s P:-D5> .illion, to bea" inte"est at 14L ,e" annu. until %ully ,aid9 to "elease o" cancel t+e .o"t*a*es and to "etu"n t+e co""es,ondin* titles to ,etitione"s9 and to ,ay t+e costs o% t+e suitR&C dis.issed t+e co.,laint a*ainst CEB&C %o" lac6 o% cause o% action since t+e )O' bet!een ,etitione"s and CEB&C !as not sub3ect to SC decision, CEB&C not bein* a ,a"ty t+e"etoPetitione"s and PDCP a,,ealed to t+e C', !+ic+ +eld t+at ,etitione"sM outstandin* obli*ation /dete".ined to be only P1-: .illion0 could not be inc"eased o" dec"eased by any act o% t+e c"edito" PDCP, and +eld t+at !+en PDCP assi*ned its "ecei ables, t+e a.ount ,ayable to it by D'&ICOR !as t+e sa.e a.ount ,ayable to assi*nee CEB&C, i""es,ecti e o% any sti,ulation t+at PDCP and CEB&C .i*+t +a e ,"o ided in t+e Deed o% 'ssi*n.ent,

CIVIL PROCEDURE REVIEWER=$

D'&ICOR not +a in* been a ,a"ty t+e"eto, +ence, not bound by its te".sBy t+e ,"inci,le o% solutio indebiti, t+e C' +eld t+at CEB&C !as bound to "e%und D'&ICOR t+e e8cess ,ay.ent o% P> .illion it "ecei ed9 and t+at CEB&C could "eco e" %"o. PDCP t+e P:-D5> .illion %o" t+e o e",ay.ent %o" t+e assi*ned "ecei ables- But since D'&ICOR clai.ed in its co.,laint only o% P#=>,DDD %"o. CEB&C, t+e latte" !as o"de"ed to ,ay t+e. only t+at a.ountPetitione"s %iled be%o"e t+e R&C anot+e" Co.,laint a*ainst CEB&C to "eco e" t+e balance o% t+e e8cess ,ay.ent o% P:-55> .illion&+e t"ial cou"t dis.issed ,etitione"sM co.,laint on t+e *"ound o% res /udicata and s,littin* o% cause o% action- It "ecalled t+at ,etitione"s +ad %iled an action to "eco e" t+e alle*ed o e",ay.ent bot+ %"o. PDCP and CEB&C and t+at t+e C' Decision, o"de"in* PDCP to "elease and cancel t+e .o"t*a*es and CEB&C to ,ay P#=>,DDD !it+ inte"est beca.e %inal and e8ecuto"yISSUE2 .hether the action should be dismissed on the ground of res /udicata 6ES2 &+e"e is no doubt t+at t+e 3ud*.ent on a,,eal "elati e to t+e %i"st ci il case !as a %inal 3ud*.ent(ot only did it dis,ose o% t+e case on t+e .e"its, it also beca.e e8ecuto"y as a conse?uence o% t+e denial o% CEB&Cs .otion %o" "econside"ation and a,,eal- In %act, aut+o"ities tend to !iden "at+e" t+an "est"ict t+e doct"ine o% res /udicata on t+e *"ound t+at ,ublic as !ell as ,"i ate inte"est de.ands t+e endin* o% suits by "e?ui"in* t+e ,a"ties to sue once and %o" all in t+e sa.e case all t+e s,ecial ,"oceedin*s and "e.edies to !+ic+ t+ey a"e entitledSection :$ o% Rule 5# lays do!n t!o .ain "ulesSection :#/b0 enunciates t+e %i"st "ule o% res /udicata 6no!n as Gba" by ,"io" 3ud*.entK o" Gesto,,el by 3ud*.ent,K !+ic+ states t+at t+e 3ud*.ent o" dec"ee o% a cou"t o% co.,etent 3u"isdiction on t+e .e"its concludes t+e ,a"ties and t+ei" ,"i ies to t+e liti*ation and constitutes a ba" to a ne! action o" suit in ol in* t+e sa.e cause o% action eit+e" be%o"e t+e sa.e o" any ot+e" t"ibunalStated ot+e"!ise, Gba" by %o".e" 3ud*.entK .a6es t+e 3ud*.ent "ende"ed in t+e %i"st case an absolute ba" to t+e subse?uent action since t+at 3ud*.ent is conclusi e not only as to t+e .atte"s o%%e"ed and "ecei ed to sustain it but also as to any ot+e" .atte" !+ic+ .i*+t +a e been o%%e"ed %o" t+at ,u",ose and !+ic+ could +a e been ad3ud*ed t+e"ein- It is in t+is conce,t t+at t+e te". res /udicata is .o"e co..only and *ene"ally used as a *"ound %o" a .otion to dis.iss in ci il cases&+e second "ule o% res /udicata e.bodied in Section :$/c0, Rule 5# is Gconclusi eness o% 3ud*.ent-K &+is "ule ,"o ides t+at any "i*+t, %act, o" .atte" in issue di"ectly ad3udicated o" necessa"ily in ol ed in t+e dete".ination o% an action be%o"e a co.,etent cou"t in !+ic+ a 3ud*.ent o" dec"ee is "ende"ed on t+e .e"its is conclusi ely settled by t+e 3ud*.ent t+e"ein and cannot a*ain be liti*ated bet!een t+e ,a"ties and t+ei" ,"i ies !+et+e" o" not t+e clai. o" de.and, ,u",ose, o" sub3ect .atte" o% t+e t!o suits is t+e sa.e- It "e%e"s to a situation !+e"e t+e 3ud*.ent in t+e ,"io" action o,e"ates as an
)E(DE@, IV'( VIA&OR /4D, 150

esto,,el only as to t+e .atte"s actually dete".ined o" !+ic+ !e"e necessa"ily included t+e"ein&+e case at ba" satis%ies t+e %ou" essential "e?uisites o% Gba" by ,"io" 3ud*.ent,K viz* a0 %inality o% t+e %o".e" 3ud*.ent9 b0 t+e cou"t !+ic+ "ende"ed it +ad 3u"isdiction o e" t+e sub3ect .atte" and t+e ,a"ties9 c0 it .ust be a 3ud*.ent on t+e .e"its9 and d0 t+e"e .ust be, bet!een t+e %i"st and second actions, identity o% ,a"ties, sub3ect .atte" and causes o% action-

,ai ure t! state a cause !f acti!n HALIMAO v. *ILLANUE*A (!5& SCRA ( (%%6" &+e "ule t+at a .otion to dis.iss is to be conside"ed as a +y,ot+etical ad.ission o% t+e %acts alle*ed in t+e co.,laint a,,lies .o"e ,a"ticula"ly to cases in !+ic+ t+e *"ound %o" dis.issal is t+e %ailu"e o% t+e co.,laint to state a cause o% actionC'C&S2 Reynaldo Bali.ao !"ote a lette" to t+e C+ie% Justice, alle*in* t+at "es,ondents, !it+out la!%ul aut+o"ity and a".ed !it+ a".alites and +and*uns, %o"cibly ente"ed t+e Oo Aian &io6 Co.,ound in Cainta, RiHal, o% !+ic+ co.,lainant !as ca"eta6e"- Co.,lainant ,"ayed t+at an in esti*ation be conducted and t+at "es,ondents be disba""edRes,ondents Villanue a et- al- %iled a co..ent, clai.in* t+at t+e co.,laint is a .e"e du,lication o% t+e co.,laint %iled by Danilo Be"nandeH in 'd.inist"ati e Case (o- 5F5>, !+ic+ t+is Cou"t +ad al"eady dis.issed %o" lac6 o% .e"it- &+ey ,ointed out t+at bot+ co.,laints a"ose %"o. t+e sa.e incident and t+e sa.e acts co.,lained o% and t+at Danilo Be"nandeH, !+o %iled t+e ,"io" case, is t+e sa.e ,e"son !+ose a%%ida it is attac+ed to t+e co.,laint in t+is caseCo7"es,ondent Ce""e" clai.ed t+at t+e t!o co.,laints !e"e %iled %o" t+e ,u",ose o% +a"assin* +i. because +e !as t+e ,"inci,al la!ye" o% 'tty- Daniel Villanue a in t!o cases be%o"e t+e SEC&+is case !as "e%e""ed to t+e IBP, !+ose Boa"d o% Eo e"no"s dis.issed t+e case- &+e In esti*atin* Co..issione" %ound t+at t+e co.,laint is ba""ed by t+e decision in 'd.inist"ati e Case (o- 5F5> !+ic+ in ol ed t+e sa.e incident- &+e co.,laints in t+e t!o cases !e"e si.ila"ly !o"dedCo.,lainant %iled a .otion %o" "econside"ation o% t+e "esolution o% t+e IBP Boa"d o% Eo e"no"s, alle*in* t+at t+e co..issione" e""oneously dis.issed t+e co.,laint since t+e "es,ondents a"e dee.ed to +a e ad.itted t+e alle*ations o% t+e co.,laint a*ainst t+e. by %ilin* a .otion to dis.iss ISSUE2 .hether the res%ondents hy%othetically admitted %etitionerBs allegations by filing a motion to dismiss NO2 &+e "ule t+at a .otion to dis.iss is to be conside"ed as a +y,ot+etical ad.ission o% t+e %acts alle*ed

CIVIL PROCEDURE REVIEWER=F

in t+e co.,laint a,,lies .o"e ,a"ticula"ly to cases in !+ic+ t+e *"ound %o" dis.issal is t+e %ailu"e o% t+e co.,laint to state a cause o% action- &+is "ule does not a,,ly to ot+e" *"ounds %o" dis.issal- In suc+ cases, t+e +y,ot+etical ad.ission is li.ited to t+e %acts alle*ed in t+e co.,laint !+ic+ "elate to and a"e necessa"y %o" t+e "esolution o% t+ese *"ounds as ,"eli.ina"y .atte"s in ol in* substanti e o" ,"ocedu"al la!s, but not to t+e ot+e" %acts o% t+e case&!o .otions %o" "econside"ation o% t+is "esolution !e"e %iled by t+e co.,lainant t+e"ein, bot+ o% !+ic+ !e"e denied- W+ile t+e co.,lainant /Danilo Be"nandeH0 in 'd.inist"ati e Case (o- 5F5> is di%%e"ent %"o. t+e co.,lainant in t+e ,"esent case, t+e %act is t+at t+ey +a e an identity o% inte"est, as t+e In esti*atin* Co..issione" "uled- Bot+ co.,lainants !e"e e.,loyed at t+e Oo Aian &io6 Co.,ound at t+e ti.e o% t+e alle*ed incident- Bot+ co.,lain o% t+e sa.e act alle*edly co..itted by "es,ondents- &+e "esolution o% t+is Cou"t in 'd.inist"ati e Case (o- 5F5> is t+us conclusi e in t+is case, it a,,ea"in* t+at t+e co.,laint in t+is case is not+in* but a du,lication o% t+e co.,laint o% Danilo Be"nandeH in t+e ,"io" caseTAN v. CA (!%5 SCRA !4' (%%)" )eneral rule2 ' e".ents in t+e co.,laint a"e dee.ed +y,ot+etically ad.itted u,on %ilin* o% a )otion to Dis.iss *"ounded on %ailu"e to state a cause o% action +,ce%tions2 )otion to Dis.iss does not ad.it t+e %ollo!in*2 10 E,it+ets o% %"aud 40 'lle*ations o% le*al conclusions 50 E""oneous state.ents o% la! :0 In%e"ences o" conclusions %"o. %acts not stated >0 Conclusions o% la! =0 'lle*ations o% %act, %alsity o% !+ic+ is sub3ect to 3udicial notice $0 )atte"s o% e idence F0 Su",lusa*e and i""ele ant .atte" #0 Scandalous o" insultin* .atte" 1D0 Le*ally i.,ossible %acts 110 Un%ounded %acts by "eco"d inco",o"ated in ,leadin* o" docu.ent Eene"al a e".ents cont"adicted

cont"act to secu"e t+e con eyance o% t+e ,"o,e"ty to &an Aiat- &an Aiat ne e" ,aid "ental and no de.and %o" "entals !as .ade on +i.&an Died- &an Aiat t+e"ea%te" de.anded %o" t+e con eyance o% t+e ,"o,e"ty as +e !as %inally a natu"aliHed Cili,ino- Petitione"s %ailed to con ey t+e.&an Aiat %iled a co.,laint %o" "eco e"y o% ,"o,e"ty- Petitione"s .o ed %o" its dis.issal based, a.on* ot+e"s, on %ailu"e to state a cause o% action- R&C dis.issed co.,laint accedin* to all *"ounds set %o"t+ by t+e ,etitione"s- C' "e e"sed and o"de"ed t+at case be "e.anded %o" %u"t+e" ,"oceedin*sISSUE2 .hether the com%laint stated no cause of action 6ES- ' e".ents in t+e co.,laint a"e dee.ed +y,ot+etically ad.itted u,on %ilin* o% a )otion to Dis.iss *"ounded on %ailu"e to state a cause o% action- But t+e"e a"e also li.itations to suc+ "uleIn t+e case at ba", t+e Gt"ust t+eo"yK clai.ed by &an Aiat does not +old !ate"- &+e lease cont"act as e idenced by docu.ent attac+ed !it+ t+e )otion to Dis.iss and ad.itted by &an Aiat al"eady belies t+e latte"s clai. o% o!ne"s+i,- &+e"e is an a,,a"ent lesso"7 lessee "elations+i,- O!ne"s+i, o% &an is %u"t+e" su,,o"ted by t+e annotated .o"t*a*e on t+e bac6 o% t+e &C& !+ic+ &an e8ecuted in %a o" o% a ban6 so as to secu"e a loan- In t"ut+, By t+e e"y natu"e o% a .o"t*a*e cont"act, &an could not +a e .o"t*a*e t+e ,"o,e"ty i% +e !as not t+e "eal o!ne"Ba in* %ailed to ,"o e t+e t"ust "elations+i,, it .ay be *leaned %"o. t+e alle*ations t+at t+e t"ansaction !as a double sale instead- Since &an +ad t+e &C& in +is na.e, +e is ,"esu.ed to +a e t+e bette" "i*+tStatute !f ,rauds ASIA #RODUCTION CO. INC. v. #ANO (!05 SCRA 45) (%%!" Unde" '"ticle 1:D5, t+e cont"acts conce"ned a"e si.,ly Qunen%o"ceableQ and t+e "e?ui"e.ent t+at t+ey1o" so.e note o" .e.o"andu. t+e"eo% 1 be in !"itin* "e%e"s only to t+e .anne" t+ey a"e to be ,"o ed- It *oes !it+out sayin* t+en, t+at t+e statute !ill a,,ly only to e8ecuto"y "at+e" t+an e8ecuted cont"acts- Pa"tial e8ecution is e en enou*+ to ba" t+e a,,lication o% t+e statuteC'C&S2 Res,ondents Bua and Dy, o!ne"s o% a buildin* const"ucted on a lot leased %"o. Lucio San 'nd"es and located in Bulacan, sold t+e buildin* to t+e ,etitione"s %o" P1$D,DDD-DD, !it+ t+e assu"ance t+at "es,ondents !ill also assi*n to t+e. t+e cont"act o% lease o e" t+e land- &+e abo e a*"ee.ent and ,"o.ise !e"e not "educed to !"itin*P"i ate "es,ondents unde"too6 to deli e" t+e deed o% con eyance o e" t+e buildin* and t+e deed o% assi*n.ent o% t+e cont"act o% lease !it+in si8ty /=D0 days u,on t+e P4D,DDD do!n,ay.ent- &+e balance !as to be ,aid in .ont+ly install.ents- Petitione"s ,aid t+e do!n,ay.ent and issued ei*+t /F0 ,ostdated c+ec6s %o" t+e ,ay.ent o% t+e ei*+t /F0 .ont+ly install.ents-

C'C&S2 &an Ae+ sold t!o ,a"cels o% land to &an Aiat, but %ailed to e%%ect t+e i..ediate t"ans%e" o% t+e ,"o,e"ties since &an Aiat !as still a %o"ei*n national at t+e ti.e o% t+e sale- (e e"t+eless &an Ae+ secu"ed t+e sale by e8ecutin* a lease cont"act o% :D yea"s in %a o" o% &an AiatCou" yea"s late", &an Ae+ sold t+e ,"o,e"ties to +is b"ot+e", &an- &an 6no!in*ly +eld t+e ,"o,e"ty in t"ust %o" &an Aiat until t+e latte" ac?ui"es Cili,ino citiHens+i,&+e ne! &C&s !e"e issued in t+e na.e o% &an as t"ustee o% &an Aiat- &an6 Ae+ and &an e8ecuted anot+e" lease
)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER=#

Petitione"s const"ucted a !ea in* %acto"y on t+e leased lot- Un%o"tunately, ,"i ate "es,ondents, des,ite e8tensions *"anted, %ailed to co.,ly !it+ t+ei" unde"ta6in* to e8ecute t+e deed o% sale and to assi*n t+e cont"act des,ite t+e %act t+at t+ey !e"e able to encas+ t+e c+ec6s in t+e total a.ount o% P5D,DDD- Wo"se, t+e lot o!ne" .ade it ,lain to ,etitione"s t+at +e !as un!illin* to *i e consent to t+e assi*n.ent o% t+e lease unless ,etitione"s a*"eed to ce"tain one"ous te".s, suc+ as an inc"ease in "ental, o" t+e ,u"c+ase o% t+e land at a e"y unconscionable ,"icePetitione"s "e.o ed all t+ei" ,"o,e"ty, .ac+ine"y and e?ui,.ent %"o. t+e buildin*, acated t+e sa.e and "etu"ned its ,ossession to ,"i ate "es,ondents- &+ey de.anded %"o. t+e latte" t+e "etu"n o% t+ei" ,a"tial ,ay.ent %o" t+e ,u"c+ase ,"ice o% t+e buildin* in t+e total su. o% P>D,DDD, !+ic+ "es,ondents "e%used to "etu"n- Petitione" %iled a co.,laint %o" "eco e"y and o% actual, .o"al and e8e.,la"y da.a*es and atto"neyMs %ees !it+ t+e CCIBua !as decla"ed in de%ault- Dy %iled a .otion to dis.iss t+e co.,laint on t+e *"ound t+at t+e clai. on !+ic+ t+e action is based 1 an alle*ed ,u"c+ase o% a buildin* !+ic+ is not e idenced by any !"itin* 1 cannot be ,"o ed by ,a"ol e idence since '"ticle 15>= in "elation to '"ticle 15>F o% t+e Ci il Code "e?ui"es t+at it s+ould be in !"itin*- &+e R&C *"anted t+e .otion to dis.iss on t+e *"ound t+at t+e co.,laint is ba""ed by t+e Statute o% C"auds- &+ei" .otion %o" "econside"ation !as denied %o" t+e "eason t+at t+e o"al cont"act in t+is case !as not "e.o ed %"o. t+e o,e"ation o% t+e Statute o% C"auds because t+e"e !as no %ull o" co.,lete ,e"%o".ance by t+e ,etitione"s o% t+e cont"act as "e?ui"ed by Ju"is,"udenceISSUE2 .hether %etitionerBs action is barred by the $tatute of Frauds NO2 '"ticle 1:D5 o% t+e Ci il Code decla"es t+e %ollo!in* cont"acts, a.on* ot+e"s, as unenforceable, unless t+ey a"e "ati%ied2 &+e ,u",ose o% t+e statute is to ,"e ent %"aud and ,e"3u"y in t+e en%o"ce.ent o% obli*ations de,endin* %o" t+ei" e idence on t+e unassisted .e.o"y o% !itnesses by "e?ui"in* ce"tain enu.e"ated cont"acts and t"ansactions to be e idenced by a !"itin* si*ned by t+e ,a"ty to be c+a"*ed- It !as not desi*ned to %u"t+e" o" ,e",etuate %"audUnde" '"ticle 1:D5, t+e cont"acts conce"ned a"e si.,ly Qunen%o"ceableQ and t+e "e?ui"e.ent t+at t+ey1o" so.e note o" .e.o"andu. t+e"eo% 1 be in !"itin* "e%e"s only to t+e .anne" t+ey a"e to be ,"o ed- It *oes !it+out sayin* t+en, t+at t+e statute !ill a,,ly only to e8ecuto"y "at+e" t+an e8ecuted cont"acts- Pa"tial e8ecution is e en enou*+ to ba" t+e a,,lication o% t+e statute&+e instant case is not %o" s,eci%ic ,e"%o".ance o% t+e a*"ee.ent to sell t+e buildin* and to assi*n t+e lease+old "i*+t, but to "eco e" t+e ,a"tial ,ay.ent %o" t+e a*"eed ,u"c+ase ,"ice o% t+e buildin*- By t+ei" .otion to dis.iss, ,"i ate "es,ondents t+eo"etically o" +y,ot+etically ad.itted t+e t"ut+ o% t+e alle*ations o% %act in t+e co.,laint- &+e action is de%initely not one %o" s,eci%ic ,e"%o".ance9 +ence t+e Statute o% C"auds does not a,,ly'nd e en i% it !e"e %o" s,eci%ic ,e"%o".ance, ,a"tial e8ecution t+e"eo% by ,etitione"s e%%ecti ely ba"s t+e ,"i ate "es,ondents %"o. in o6in* it-

C!nditi!n #recedent SUN*ILLE TIMBER #RODUCTS INC. v. ABAD (!06 SCRA 4)! (%%!" &+e doct"ine o% e8+austion o% ad.inist"ati e "e.edies calls %o" "eso"t %i"st to t+e a,,"o,"iate ad.inist"ati e aut+o"ities in t+e "esolution o% a cont"o e"sy %allin* unde" t+ei" 3u"isdiction be%o"e t+e sa.e .ay be ele ated to t+e cou"ts o% 3ustice %o" "e ie!-

C'C&S2 Sun ille &i.be" P"oducts /Sun ille0 !as *"anted a &i.be" License '*"ee.ent /&L'0, aut+o"iHin* it to cut, "e.o e and utiliHe ti.be" !it+in t+e concession a"ea co e"in* 4#,>DD +ecta"es o% %o"est land in @a.boan*a del Su", %o" a ,e"iod o% 1D yea"s&+e "es,ondents %iled a ,etition !it+ t+e DE(R %o" t+e cancellation o% t+e &L' and !it+ t+e R&C %o" in3unction in a ci il case, bot+ on t+e *"ound o% se"ious iolations o% its conditions and t+e ,"o isions o% %o"est"y la!sSun ille .o ed to dis.iss t+is case on t+e *"ound t+at t+e ,lainti%%s +ad not yet e8+austed ad.inist"ati e "e.edies, a.on* ot+e"s&+e .otion to dis.iss and t+e .otion %o" "econside"ation !e"e denied- &+e C' sustained t+e R&Cs decision- C' +eld t+at t+e doct"ine o% e8+austion o% ad.inist"ati e "e.edies !as not !it+out e8ce,tion and ,ointed to t+e se e"al instances a,,"o ed by t+is Cou"t !+e"e it could be dis,ensed !it+- &+e a,,licable e8ce,tion !as t+e u"*ent need %o" 3udicial inte" ention because City Council o% Pa*adian "e?uested t+e Bu"eau o% Co"est De elo,.ent to "ese" e 1,DDD +ecta"es in Lison Valley&+is "e?uest "e.ained unacted u,on- Instead a &L' co e"in* 4#,>DD +ecta"es, includin* t+e a"ea "e?uested, !as *i en to ,etitione" Sun ille- Due to t+e e"osion caused by Sun illes lo**in* o,e"ations +ea y %loods +a e occu""ed in a"eas ad3oinin* t+e lo**in* concessions- &+us, it is u"*ent t+at indisc"i.inate lo**in* be sto,,edSun ille contends t+at t+e doct"ine o% e8+austion o% ad.inist"ati e "e.edies !as not co""ectly a,,lied ISSUE2 .hether the a%%lication of the doctrine of e,haustion of administrative remedies is correct NO2 &+e doct"ine o% e8+austion o% ad.inist"ati e "e.edies calls %o" "eso"t %i"st to t+e a,,"o,"iate ad.inist"ati e aut+o"ities in t+e "esolution o% a cont"o e"sy %allin* unde" t+ei" 3u"isdiction be%o"e t+e sa.e .ay be ele ated to t+e cou"ts o% 3ustice %o" "e ie!&+e"e is t+e e8,licit lan*ua*e o% ,e"tinent la!s estin* in t+e DE(R t+e ,o!e" and %unction Qto "e*ulate t+e de elo,.ent, dis,osition, e8t"action, e8,lo"ation and use o% t+e count"yMs %o"estsQ and Qto e8e"cise e8clusi e 3u"isdictionQ in t+e Q.ana*e.ent and dis,osition o% all lands o% t+e ,ublic do.ain,Q and in t+e Co"est )ana*e.ent Bu"eau t+e "es,onsibility %o" t+e en%o"ce.ent o% t+e %o"est"y la!s aid "e*ulations +e"e clai.ed to +a e been iolated- &+is co.,"e+ensi e con%e".ent clea"ly im%lies at t+e e"y least t+at t+e DE(R s+ould be allo!ed to "ule in

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER$D

t+e %i"st instance on any cont"o e"sy co.in* unde" its e8,"ess ,o!e"s be%o"e t+e cou"ts o% 3ustice .ay inte" ene&+e c+a"*e in ol es %actual issues callin* %o" t+e ,"esentation o% su,,o"tin* e idence- Suc+ e idence is best e aluated %i"st by t+e ad.inist"ati e aut+o"ities, e.,loyin* t+ei" s,ecialiHed 6no!led*e o% t+e a*"ee.ent and t+e "ules alle*edly iolated, be%o"e t+e cou"ts .ay ste, in to e8e"cise t+ei" ,o!e"s o% "e ie!W+! fi es =!w # eaded Peri!d ' .otion to dis.iss .ay be %iled within the time for but be%o"e %ilin* t+e ans!e" to t+e co.,laint o" ,leadin* asse"tin* a clai.- /Sec- 1, Rule 1=0 As affirmative defense I% no .otion to dis.iss +as been %iled, /10 any o% t+e *"ounds %o" dis.issal ,"o ided %o" in t+is Rule .ay be ,leaded as an a%%i".ati e de%ense in t+e ans!e", and /40 a ,"eli.ina"y +ea"in* .ay be +ad t+e"eon as i% a .otion to dis.iss +ad been %iled, in t+e disc"etion o% t+e cou"t, /Sec- =, Rule 1=0 )c!unterc aim w+ic+ ma. be #r!secuted in same !r se#arate acti!n refers t! #ermissive c!unterc aim =earin$ and res! uti!n Fearing 't t+e +ea"in* o% t+e .otion, t+e ,a"ties s+all sub.it /10 t+ei" a"*u.ents on t+e ?uestions o% la! and /40 t+ei" e idence on t+e ?uestions o% %act in ol ed e,ce%t t+ose not a ailable at t+at ti.e(O&E2 S+ould t+e case *o to t"ial, t+e e idence ,"esented du"in* t+e +ea"in* s+all automatically be ,a"t o% t+e e idence o% t+e ,a"ty ,"esentin* t+e sa.e- /Sec- 4, Rule 1=0 !esolution of motion '%te" t+e +ea"in*, t+e cou"t .ay /10 dis.iss t+e action o" clai., /40 deny t+e .otion, or /50 o"de" t+e a.end.ent o% t+e ,leadin*&+e cou"t shall not de%e" t+e "esolution o% t+e .otion %o" t+e "eason t+at t+e *"ound "elied u,on is not indubitableIn e e"y case, t+e "esolution s+all state clearly and distinctly t+e "easons t+e"e%o"- /Sec- 5, Rule =0

P"eli.ina"y Bea"in* unde" Sec >, Rule 1= is not .andato"y e en !+en t+e sa.e is ,"ayed %o", It "ests la"*ely on t+e sound disc"etion o% t+e t"ial cou"t' ,"eli.ina"y +ea"in* on an a%%i".ati e de%ense %o" %ailu"e to state a cause o% action is not necessa"yC'C&S2 Petitione" )unici,ality o% Binan %iled %o" unla!%ul detaine" a*ainst ,"i ate "es,ondent Ea"cia, statin* t+at it !as no lon*e" a.enable to t+e "ene!al o% its 4>7yea" lease cont"act !it+ ,"i ate "es,ondent o e" t+e ,"e.ises in ol ed because o% its ,"essin* need to use t+e sa.e %o" national and ,"o incial o%%icesEa"cia %iled +is ans!e" to t+e co.,laint sayin* t+at t+e cont"act o% lease +ad not yet e8,i"ed and, assu.in* t+at it +ad e8,i"ed, +e +as e8e"cised +is o,tion to stay in t+e ,"e.ises %o" anot+e" 4> yea"s as e8,"essly ,"o ided in t+e said cont"actPetitione" %iled its "e,ly- Subse?uently ,"i ate "es,ondent %iled a Q)otion %o" P"eli.ina"y Bea"in* as i% a )otion to Dis.iss Bas Been CiledQ on t+e *"ound t+at t+e co.,laint states no cause o% action, "eite"atin* +is ,"e ious a"*u.ent&+e )&C o"de"ed ,"i ate "es,ondent to acate t+e ,"e.isesP"i ate "es,ondent %iled a Q)ani%estationI)otionQ in t+e natu"e o% a .otion to dis.iss, ,"ayin* t+at t+e sa.e be %i"st "esol ed instead o% "ende"in* 3ud*.ent on t+e ,leadin*s- 'lso, ,"i ate "es,ondent %iled a notice o% a,,eal to t+e R&CPetitione" %iled a .otion %o" disc"etiona"y e8ecution, !+ic+ !as *"anted- ' !"it o% e8ecution !as issued di"ectin* t+e de,uty s+e"i%% to en%o"ce t+e te".sP"i ate "es,ondent %iled !it+ t+e C' an a,,eal on t+e *"ound t+at t+e lo!e" cou"t %ailed to conduct a ,"eli.ina"y +ea"in* as ,"ayed by +is ,"e ious .otion- C' *"anted ,"i ate "es,ondents a,,eal ISSUE2 .hether or not a %reliminary hearing for a Motion to Dismiss is mandatory NO2 It cannot be said t+at t+e lo!e" cou"t co..itted a *"a e abuse o% disc"etion o" e8ceeded its 3u"isdiction !+en it %ailed to conduct a ,"eli.ina"y +ea"in*, as ,"ayed %o" in ,"i ate "es,ondentMs Q)otion %o" P"eli.ina"y Bea"in* as i% a )otion to Dis.iss Bas Been Ciled,Q be%o"e "ende"in* 3ud*.ent on t+e .e"its o% t+e case- &+e .otion o% ,"i ate "es,ondent is anc+o"ed on t+e *"ound t+at t+e co.,laint states no cause o% action since t+e o"i*inal te". o% 4> yea"s sti,ulated in t+e cont"act o% lease +ad not yet e8,i"ed and assu.in* t+at it +ad e8,i"ed, ,"i ate "es,ondent +ad .ade 6no!n to ,etitione" +is e8clusi e o,tion to "ene! it %o" anot+e" 4> yea"sSection >, Rule 1= allo!s t+e *"ounds %o" a .otion to dis.iss to be set u, as a%%i".ati e de%enses in t+e ans!e" i% no .otion to dis.iss +as been %iledBo!e e", cont"a"y to t+e clai. o% ,"i ate "es,ondent, t+e ,"eli.ina"y +ea"in* ,e".itted unde" t+e said ,"o ision is not .andato"y e en !+en t+e sa.e is ,"ayed %o"- It "ests la"*ely on t+e disc"etion o% t+e t"ial cou"t- &+e use o% t+e !o"d Q.ayQ in said ,"o ision s+o!s t+at suc+ a +ea"in* is not a .atte" o% "i*+t de.andable %"o. t+e t"ial cou"tW+e"e t+e ,"o ision "eads Q.ay,Q t+is !o"d s+o!s t+at it is

MUNICI#ALIT. OF BINAN v. CA (!(% SCRA 6% (%%&"

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER$1

not .andato"y but disc"etional- It is an au8ilia"y e"b indicatin* libe"ty, o,,o"tunity, ,e".ission and ,ossibility)o"eo e", a ,"eli.ina"y +ea"in* on an a%%i".ati e de%ense %o" %ailu"e to state a cause o% action is not necessa"y- It is a !ell7settled "ule t+at in a .otion to dis.iss based on t+e *"ound t+at t+e co.,laint %ails to state a cause o% action, t+e ?uestion sub.itted to t+e cou"t %o" dete".ination is t+e su%%iciency o% t+e alle*ations in t+e co.,laint itsel%- W+et+e" t+ose alle*ations a"e t"ue o" not is beside t+e ,oint, %o" t+ei" t"ut+ is +y,ot+etically ad.itted by t+e .otion- In ot+e" !o"ds, to dete".ine su%%iciency o% t+e cause o% action, only t+e %acts alle*ed in t+e co.,laint, and no ot+e" s+ould be conside"ed) #re iminar. +earin$ n!t mandat!r. ) #re iminar. +earin$ !n an affirmative defense !r fai ure t! state a cause !f acti!n n!t necessar. Effects Of dismissa 'n o"de" *"antin* a .otion to dis.iss based on t+e %ollo!in* s+all ba" t+e "e%ilin* o% t+e sa.e action o" clai.2 /10 &+at t+e cause o% action is ba""ed by a ,"io" 3ud*.ent o" by t+e statute o% li.itations9 /40 &+at t+e clai. o" de.and set %o"t+ in t+e ,lainti%%s ,leadin* +as been ,aid, !ai ed, abandoned, o" ot+e"!ise e8tin*uis+ed9 /50 &+at t+e clai. on !+ic+ t+e action is %ounded is unen%o"ceable unde" t+e ,"o isions o% t+e statute o% %"auds9 and (O&E2 &+ey a"e still sub3ect to t+e "i*+t o% a,,eal - /Sec- >, Rule 1=0 )a##ea ab eB refi in$ barred if m!ti!n based !n Sec2 ' &f(" &+(" and &i( On #eri!ds f!r # eadin$ 1f the motion is denied1 t+e .o ant s+all %ile +is ans!e" !it+in t+e balance o% t+e ,e"iod ,"esc"ibed by Rule 11 to !+ic+ +e !as entitled at t+e ti.e o% se" in* +is .otion, BU& not less t+an %i e />0 days in any e ent, from his recei%t of the notice of the denial1f the %leading is ordered to be amendedBe s+all %ile +is ans!e" !it+in t+e ,e"iod ,"esc"ibed by Rule 11 counted from service of the amended %leading, unless t+e cou"t ,"o ides a lon*e" ,e"iod- /Sec- :, Rule 1=0 On !t+er $r!unds and !mnibus m!ti!n ru e ' .otion attac6in* a ,leadin*, o"de", 3ud*.ent, o" ,"oceedin* s+all include all ob/ections t+en a ailable, and all ob/ections not so included s+all be dee.ed !ai ed/Sec- F, Rule 1>0 +,ce%tions &+e cou"t s+all dis.iss t+e clai. !+en it a,,ea"s %"o. t+e ,leadin*s o" t+e e idence on "eco"d t+at
)E(DE@, IV'( VIA&OR /4D, 150

/10 t+e cou"t +as no 3u"isdiction o e" t+e sub3ect .atte", /40 t+e"e is anot+e" action ,endin* bet!een t+e sa.e ,a"ties %o" t+e sa.e cause, o" t+at /50 t+e action is ba""ed by a ,"io" 3ud*.ent o" /:0 ba""ed by t+e statute o% li.itations- /Sec- 1, Rule #0 Remedies If m!ti!n $ranted H a##ea !r refi e c!m# aint If m!ti!n denied H fi e answer" un ess wit+!ut 4urisdicti!n" in w+ic+ case" Ru e ?9 #etiti!n N#C v. CA (()5 SCRA (6% (%%0" 's a *ene"al "ule, !+ene e" a .otion is denied, t+e ,etitione" s+ould %ile an ans!e", *o to t"ial and i% t+e decision is ad e"se, "eite"ate t+e issue on a,,ealBo!e e", i% t+e cou"t !+o denies t+e .otion acts !it+out o" in e8cess o% 3u"isdiction o" !it+ *"a e abuse o% disc"etion t+e ,"o,e" .o e is to ,"oceed to a +i*+e" cou"t %o" "elie%C'C&S2 CI(E C+e.icals, a co.,any en*a*ed in t+e .anu%actu"in* o% ,lastics a,,lied !it+ t+e (PC %o" di"ect ,o!e" connection- )e"alco assu"ed t+at it +ad t+e ca,abilities to se" e CI(E but t+at to allo! di"ect connections !ill be det"i.ental to ot+e" consu.e"s since t+eyll s+oulde" t+e additional subsidy bu"denBo!e e", (PC !ent on !it+ t+e ,lan any!ay and ,"o ided its se" ices !it+ CI(E- Because o% t+is, )e"alco %iled a ,etition %o" P"o+ibition, )anda.us and Da.a*es !it+ P"eli.ina"y In3unction !it+ t+e R&C- CI(E counte"ed sayin* t+at In3uction !ould be .oot since t+e se" ice +as al"eady been consu..ated and t+e %acilities +a e been installed and a"e %unctional- )e"alco a.ended its ,etition by inco",o"atin* an a,,lication %o" a !"it o% ,"eli.ina"y .andato"y in3unction- CI(E .o ed to dis.iss t+e a.ended ,etition on t+e *"ound o% insu%%iciency o% t+e alle*ations in t+e ,etition to ,lead a cause o% action- &+e t"ial 3ud*e allo!ed )e"alco to adduce e idence o e" CI(Es ob3ection- CI(E t+en %iled a .ani%estation ado,tin* its )otion to Dis.iss but !as deniedUndaunted, CI(E ,"oceeded di"ectly to t+e C' and %iled a ,etition %o" Ce"tio"a"i, P"o+ibition and )anda.us- C' dis.issed- Bence t+is ,etitionISSUE2 .hether MeralcoBs %etition in the lower court should be dismissed 6ES2 's a *ene"al "ule, !+ene e" a .otion is denied, t+e ,etitione" s+ould %ile an ans!e", *o to t"ial and i% t+e decision is ad e"se, "eite"ate t+e issue on a,,ealBo!e e", i% t+e cou"t !+o denies t+e .otion acts !it+out o" in e8cess o% 3u"isdiction o" !it+ *"a e abuse o% disc"etion t+e ,"o,e" .o e is to ,"oceed to a +i*+e" cou"t %o" "elie%- It !ould be un%ai" to "e?ui"e t+e de%endant to unde"*o t+e o"deal and e8,ense o% t"ial unde" suc+ ci"cu.stances as t+e "e.edy o% a,,eal !ould not be ,lain and ade?uate-

CIVIL PROCEDURE REVIEWER$4

)o"e i.,o"tantly, ,etitione"s .otion to dis.iss is based on t+e *"ound t+at t+e co.,laint states no cause o% action, so t+at t+e"e is no need %o" a %ull blo!n t"ial- It is also i.,o"tant to note t+at t+e cou"ts !ill st"i e to settle t+e cont"o e"sy in a sin*le ,"oceedin* lea in* no "oot o" b"anc+ to bea" t+e seeds o% %utu"e liti*ation-

DIS-ISSAL O, AC1IONS &RULE ';( U#!n n!tice b. # aintiffDbef!re answer ' co.,laint .ay be dis.issed by t+e ,lainti%% /10 by %ilin* a notice o% dis.issal /40 at any ti.e before se" ice o% t+e ans!e" o" o% a .otion %o" su..a"y 3ud*.entU,on suc+ notice bein* %iled, t+e cou"t s+all issue an o"de" con%i".in* t+e dis.issal &+e cou"t does not +a e to a,,"o e t+e dis.issal because it +as no disc"etion on t+e .atte" Be%o"e an ans!e" o" .otion %o" su..a"y 3ud*.ent +as been se" ed u,on ,lainti%%, dis.issal by t+e ,lainti%% is a .atte" o% "i*+t It occu"s as o% t+e %ilin* o% t+e notice, not u,on cou"ts con%i".ation)eneral rule* &+e dis.issal .ade by %ilin* a notice o% dis.issal is !it+out ,"e3udice+,ce%tions* /10 &+e notice ot+e"!ise states9 and /40 W+en %iled by a ,lainti%% !+o +as once dis.issed in a co.,etent cou"t an action based on o" includin* t+e sa.e clai., in !+ic+ case t+e notice o,e"ates as an ad3udication u,on t+e .e"its- /Sec- 1, Rule 1$0

O.B. -O*ENIR v. MACAMIR REALT. (!006" &+e t"ial cou"t +as no disc"etion o" o,tion to deny t+e .otion, since dis.issal by t+e ,lainti%% unde" Section 1, Rule 1$ is *ua"anteed as a .atte" o% "i*+t to t+e ,lainti%%s- E en i% t+e .otion cites t+e .ost "idiculous o% *"ounds %o" dis.issal, t+e t"ial cou"t +as no c+oice but to conside" t+e co.,laint as dis.issed, since t+e ,lainti%% .ay o,t %o" suc+ dis.issal as a .atte" o% "i*+t, "e*a"dless o% *"oundC'C&S2 )aca.i" Realty and t+e )i"anda S,ouses /,"inci,al stoc6+olde"s0 %iled a co.,laint a*ainst Jo eni" Const"uction, see6in* t+e annul.ent o% t+e const"uction ,"o3ect ente"ed into by ,"i ate "es,ondents !it+ Jo eni", as !ell as %o" da.a*es- Jo eni" n alle*edly .is"e,"esented itsel% as a le*iti.ate cont"acto")E(DE@, IV'( VIA&OR /4D, 150

)ade3a and )an*"oban*, J"-, t+e i.,leaded de%endants, %iled t+ei" "es,ecti e .otions to dis.iss)ade3a alle*ed t+at !+ile t+e s,ouses )i"anda +ad initiated t+e co.,laint on be+al% o% )aca.i" Realty, t+e "eal ,a"ty7in7inte"est, t+ey %ailed to attac+ any Boa"d Resolution aut+o"iHin* t+e. to %ile suit on be+al% o% t+e co",o"ation- )ade3a, a .e.be" o% t+e Boa"d o% Di"ecto"s o% )aca.i" Realty, a e""ed as a %act t+at said Boa"d +ad not aut+o"iHed t+e s,ouses )i"anda to initiate t+e co.,laint a*ainst Jo eni" Realty&en /1D0 days a%te" t+e %ilin* o% t+e co.,laint, ,"i ate "es,ondents %iled a )otion to Wit+d"a! Co.,laint, alle*in* t+at du"in* t+e initial +ea"in* on t+e ,"aye" %o" ,"eli.ina"y in3unction t+ei" counsel disco e"ed a su,,osed tec+nical de%ect in t+e co.,laint t+at .ay be a *"ound %o" t+e dis.issal o% t+is case- &+us, t+ey ,"ayed to be allo!ed to !it+d"a! t+e co.,laint !it+out ,"e3udice- Jo eni" Const"uction %iled an o,,ositionBo!e e", 3ust one day ea"lie", ,"i ate "es,ondents %iled anot+e" co.,laint a*ainst t+e sa.e de%endants sa e %o" )ade3a, and see6in* t+e sa.e "elie%s as t+e %i"st co.,laint- &+is ti.e, a Boa"d Resolution aut+o"iHin* t+e s,ouses to %ile t+e Co.,laint on be+al% o% )aca.i" Realty !as attac+ed to t+e co.,laint- &+is second co.,laint !as also %iled !it+ t+e )a6ati R&C- &+e Ve"i%ication and Ce"ti%ication o% (on7Co"u. S+o,,in* in t+e second co.,laint !as acco.,lis+ed by Rosau"o )i"andaEle en /110 days a%te" t+e %ilin* o% t+e )otion to Wit+d"a! Co.,laint and se en /$0 days a%te" t+e %ilin* o% t+e second Co.,laint, t+e )a6ati R&C *"anted t+e )otion to Wit+d"a! Co.,laint- &+e R&C noted an action .ay be dis.issed by t+e ,lainti%%s e en !it+out O"de" o% t+e Cou"t by %ilin* a notice o% dis.issal at anyti.e be%o"e t+e se" ice o% t+e ans!e" unde" Rule 1$, Section 1 o% t+e Rules o% Cou"t, and acco"din*ly conside"ed t+e co.,laint !it+d"a!n !it+out ,"e3udiceJo eni" %iled a )otion to Dis.iss t+e second co.,laint on t+e *"ound o% %o"u.7s+o,,in*- &+ey ,ointed out t+at at t+e ti.e o% t+e %ilin* o% t+e second co.,laint, t+e %i"st co.,laint !as still ,endin*- &+e )a6ati R&C denied t+e )otion to Dis.iss- &+is O"de" !as a%%i".ed by t+e C' ISSUE2 .hether the dismissal was im%ro%er since Macamir filed a Motion for .ithdrawal instead of the re3uired 0otice of Dismissal NO2 Section 1, Rule 1$ o% t+e 1#=: Rules o% Ci il P"ocedu"e stated2 Dismissal by the %laintiff 1 An acti!n ma. be dismissed b. t+e # aintiff wit+!ut !rder !f c!urt b. fi in$ a n!tice !f dismissa at an. time bef!re service !f t+e answer !r !f a m!ti!n f!r summar. 4ud$ment2 Un ess !t+erwise stated in t+e n!tice" t+e dismissa is wit+!ut #re4udice" e8ce,t t+at a notice o,e"ates as an ad3udication u,on t+e .e"its !+en %iled by a ,lainti%% !+o +as once dis.issed in a co.,etent cou"t an action based on o" includin* t+e sa.e clai.- ' class suit s+all not be dis.issed o" co.,"o.ised !it+out t+e a,,"o al o% t+e cou"t-

CIVIL PROCEDURE REVIEWER$5

Indubitably, t+e ,"o ision o"dained t+e dis.issal o% t+e co.,laint by t+e ,lainti%% as a .atte" o% "i*+t at any ti.e be%o"e se" ice o% t+e ans!e"- &+e ,lainti%% !as acco"ded t+e "i*+t to dis.iss t+e co.,laint !it+out t+e necessity o% alle*in* in t+e notice o% dis.issal any *"ound no" o% .a6in* any "ese" ationE idently, "es,ondents +ad t+e "i*+t to dis.iss t+ei" co.,laint by .e"e notice !+en Jo eni" +ad not yet se" ed t+ei" ans!e" on "es,ondents- &+e )otion to Wit+d"a! Co.,laint .a6es clea" "es,ondents Qdesi"e to !it+d"a! t+e co.,laint !it+out ,"e3udice-Q &+at "es,ondents "eso"ted to a .otion to e%%ect !+at t+ey could +a e instead by .e"e notice .ay be indicati e o% a ce"tain de*"ee o% i*no"ance o% ,"ocedu"al "ules on t+e ,a"t o% "es,ondents counsel- Tet suc+ Qe""o",Q i% it could be called as suc+, s+ould +a"dly be o% %atal conse?uence- Petitione"s ,osit t+at t+e Q"e.edyQ o% %ilin* a notice o% dis.issal is not e8clusi e, "es,ondents +a in* t+e Qo,tionQ o% secu"in* t+e cou"ts a,,"o al to t+e dis.issal- On t+e cont"a"y, t+e t"ial cou"t +as no disc"etion o" o,tion to deny t+e .otion, since dis.issal by t+e ,lainti%% unde" Section 1, Rule 1$ is *ua"anteed as a .atte" o% "i*+t to t+e ,lainti%%s- E en i% t+e .otion cites t+e .ost "idiculous o% *"ounds %o" dis.issal, t+e t"ial cou"t +as no c+oice but to conside" t+e co.,laint as dis.issed, since t+e ,lainti%% .ay o,t %o" suc+ dis.issal as a .atte" o% "i*+t, "e*a"dless o% *"oundW+ile t+e )otion to Wit+d"a! Co.,laint is styled as a Q.otionQ and contains a Q,"aye"Q, t+ese a"e innocuous e""o"s and su,e"%luities t+at do not det"act %"o. its bein* a notice o% dis.issal .ade unde" said Section 1 o% Rule 1$ and !+ic+ i,so %acto dis.issed t+e case- It is a +o"nboo6 "ule t+at it is not t+e ca,tion o% a ,leadin* but t+e alle*ations t+e"eat t+at dete".ines its natu"e&+us, t+e co.,laint could be ,"o,e"ly conside"ed as +a in* been dis.issed o" !it+d"a!n as o% t+e %ilin* o% t+e )otion to Wit+d"a! Co.,laint- 'cco"din*ly, !+en "es,ondents %iled t+ei" ne! co.,laint "elatin* to t+e sa.e cause o% action on, t+e old co.,laint !as no lon*e" ,endin*'s noted at t+e onset, t+e 1##$ Rules o% Ci il P"ocedu"e no! "e?ui"es t+at u,on t+e %ilin* o% suc+ notice, t+e cou"t issue an o"de" con%i".in* t+e dis.issal- &+e ne! "e?ui"e.ent is intended to ?uali%y t+e "i*+t o% a ,a"ty to dis.iss t+e action be%o"e t+e ad e"se ,a"ty %iles an ans!e" o" as6s %o" su..a"y 3ud*.ent- Still, t+e"e is no cause to a,,ly t+e 1##$ Rules "et"oacti ely to t+is case- ' ,lainti%%s "i*+t to cause t+e dis.issal o% +is co.,laint unde" t+e 1#=: "ules !as un?uali%ied- P"ocedu"al "ules .ay not be *i en "et"oacti e e%%ect i% ested "i*+ts !ould be distu"bed, o" i% t+ei" a,,lication !ould not be %easible o" !ould !o"6 in3usticeU#!n m!ti!n !f # aintiffDafter answer SEC- 4- Dismissal u%on motion of %laintiff#-+,ce%t as ,"o ided in t+e ,"ecedin* section, a co.,laint s+all not be dis.issed at t+e ,lainti%%s instance sa e u,on a,,"o al o% t+e cou"t and u,on suc+ te".s and conditions as t+e cou"t dee.s ,"o,e"- I% a counte"clai. +as been ,leaded by a de%endant ,"io" to t+e se" ice u,on +i. o% t+e ,lainti%%s .otion %o" dis.issal, t+e dis.issal s+all be li.ited to t+e co.,laint- &+e dis.issal s+all be !it+out ,"e3udice to t+e
)E(DE@, IV'( VIA&OR /4D, 150

"i*+t o% t+e de%endant to ,"osecute +is counte"clai. in a se,a"ate action unless !it+in %i%teen /1>0 days %"o. notice o% t+e .otion +e .ani%ests +is ,"e%e"ence to +a e +is counte"clai. "esol ed in t+e sa.e action- Unless ot+e"!ise s,eci%ied in t+e o"de", a dis.issal unde" t+is ,a"a*"a,+ s+all be !it+out ,"e3udice- ' class suit s+all not be dis.issed o" co.,"o.ised !it+out t+e a,,"o al o% t+e cou"t- /4a0 Effect !f c!unterc aim Due t! fau t !f # aintiff SEC- 5- Dismissal due to fault of %laintiff#-I%, %o" no 3usti%iable cause, t+e ,lainti%% %ails to a,,ea" on t+e date o% t+e ,"esentation o% +is e idence in c+ie% on t+e co.,laint, o" to ,"osecute +is action %o" an un"easonable len*t+ o% ti.e, o" to co.,ly !it+ t+ese Rules o" any o"de" o% t+e cou"t, t+e co.,laint .ay be dis.issed u,on .otion o% t+e de%endant o" u,on t+e cou"ts o!n .otion, !it+out ,"e3udice to t+e "i*+t o% t+e de%endant to ,"osecute +is counte"clai. in t+e sa.e o" in a se,a"ate action- &+is dis.issal s+all +a e t+e e%%ect o% an ad3udication u,on t+e .e"its, unless ot+e"!ise decla"ed by t+e cou"t- /5a0 CRU/ v. CA (!006" Rule 1$, Sec- 5 enu.e"ates t+e instances !+e"e t+e co.,laint .ay be dis.issed due to ,lainti%%Ms %ault2 /10 i% +e %ails to a,,ea" on t+e date %o" t+e ,"esentation o% +is e idence in c+ie%9 /40 i% +e %ails to ,"osecute +is action %o" an un"easonable len*t+ o% ti.e9 o" /50 i% +e %ails to co.,ly !it+ t+e "ules o" any o"de" o% t+e cou"t- Once a case is dis.issed %o" %ailu"e to ,"osecute, t+is +as t+e e%%ect o% an ad3udication on t+e .e"its and is unde"stood to be !it+ ,"e3udice to t+e %ilin* o% anot+e" action unless ot+e"!ise ,"o ided in t+e o"de" o% dis.issal- In ot+e" !o"ds, unless t+e"e be a ?uali%ication in t+e o"de" o% dis.issal t+at it is !it+out ,"e3udice, t+e dis.issal s+ould be "e*a"ded as an ad3udication on t+e .e"its and is !it+ ,"e3udice-

C'C&S2 &+e"e a"e : cases in ol ed in t+is cont"o e"sy1st case2 Unla!%ul Detaine" be%o"e t+e )&C o% Ea,an, (ue a Eci3a, decided in 1##F in fav!r !f #etiti!ner CruI and C!nce#ci!n4nd case2 Puietin* o% &itle be%o"e t+e R&C o% Ea,an, (ue a Eci3a !+ic+ !as dismissed %o" %ailu"e to ,"osecute as e idenced by t+e R&C in 4DDD- /Ci il Case 1=DD0 5"d case2 Suit %o" In3unction %iled be%o"e t+e R&C o% Ea,an City, !+ic+ !as dismissed !n $r!und !f 8es :ud4;797 O because t+e"e !as substantial identity o% ,a"ties !it+ t+e 4nd case:t+ case2 Annulment of 4itle .ith Damages %iled !it+ R&C o% Ea,an City, !+e"e ,etitione"s inte",osed a Motion for Cutright Dismissal of Civil Case, where the court granted the Motion for Cutright dismissal on g reasoned that*ounds of res /udicata and accion %endente

CIVIL PROCEDURE REVIEWER$:

lite, after finding that K (:" t+e 5"d case in ol e t+e sa.e ,a"ties, sub3ect .atte" and issue as t+at in t+e 1st case and 4nd case9 /40 in all 5 cases, )a"iano Buna* !as included as ,a"ty7,lainti%% and E"nestina Conce,cion as ,a"ty7 de%endant9 /50 t+e sub3ect .atte" is a 1,1=D s?-. ,a"cel o% land in San (icolas, Ea,an City9l /:0 and t+e issue is !+o bet!een t+e 4 ,a"ties +as t+e la!%ul title o e" t+e sa.e&+e cou"t +e"eby sentenced *uilty o% indi"ect Conte.,t o% Cou"t by "eason o% non7disclosu"e o% Cases 1 and 4 in t+e Ce"ti%icateIVe"i%ication o% t+ei" co.,laint O as "e?ui"ed by Section >, Rule $ o% t+e ROC&+e "es,ondents %iled a MF! which the Court granted by setting aside the order which granted the defendantBs )otion %o" t+e Out"i*+t Dis.issal and t+e o"de" citin* t+e ,lainti%%s and counsel *uilty %o" conte.,t o% cou"t- &+e cou"t t+e"eby o"de"ed t+e de%endants to %ile t+ei" ans!e"I"es,onsi e ,leadin* !it+in 1> days %"o. "ecei,t o% t+e Cou"t o"de"Petitione"s t+en a,,ealed in t+e C' and t+e C' dis.issed t+e ,etition %o" lac6 o% .e"it, "easonin* t+at t+e"e is no identity o% ,a"ties bet!een Case 1 and t+e instant case %o" t+e si.,le "eason t+at ,lainti%%s in t+e case at ba" !e"e not ,a"ties in Case 1- 'lso, t+e ,lainti%%s and t+ei" counsel can not be said to +a e iolated t+e "ule a*ainst %o"u. s+o,,in*- Plainti%%s and t+ei" counsel did not %ile Case 1 and t+e"e%o"e t+ey a"e not obli*ated to in%o". t+is Cou"t t+at t+ey +a e %iled a si.ila" action in ol in* t+e sa.e issue !it+ ot+e" cou"tIn t+ei" co..ent, "es,ondents Buna* and Vdade Buna* .aintain t+at t+e C' did not e"" !+en it +eld t+at t+e"e !as no res /udicata in t+e case at ba"Petitione"s clai. t+at res /udicata a,,lies in t+is case because all t+e ele.ents t+e"eo% a"e ,"esent, !+ic+ a"e 7 /10 t+e"e .ust be a %inal 3ud*.ent o" o"de"9 /40 said 3ud*.ent o" o"de" .ust be on t+e .e"its9 /50 t+e Cou"t "ende"in* t+e sa.e .ust +a e 3u"isdiction on t+e sub3ect .atte" and t+e ,a"ties9 and /:0 t+e"e .ust be bet!een t+e t!o cases identity o% ,a"ties, identity o% sub3ect .atte", and identity o% causes o% actionOn t+e ot+e" +and, ,"i ate "es,ondents a"*ue t+e cont"a"y alle*in* t+at t+e 4nd and :t+ ele.ents a"e lac6in*ISSUE2 W+et+e" t+e"e !as a ,"o,e" dis.issal o% t+e Ci il Case 1=DD /a case ,"io" to t+e case at ba"0 7 !+ic+ is a necessa"y ele.ent %o" "es 3udicata to attac+6ES2 Unde" t+e "ule o% res /udicata, also 6no!n as Gba" by ,"io" 3ud*.ent,K a %inal 3ud*.ent "ende"ed by a Cou"t +a in* 3u"isdiction o% t+e sub3ect .atte" and o% t+e ,a"ties, is conclusi e in a subse?uent case bet!een t+e sa.e ,a"ties and t+ei" successo"7in7inte"est, liti*atin* %o" t+e sa.e t+in* and unde" t+e sa.e title and in t+e sa.e ca,acityOn t+e 4nd ele.ent o% "es 3udicata O t+at &5( said 4ud$ment !r !rder must be !n t+e merits , t+e ,"i ate "es,ondents a"*ue t+at t+e dis.issal o% C'SE 4 /Puietin* o% &itle0 !as not a dis.issal on t+e .e"its- &+e dis.issal o% t+is case, t+ey clai., !ill not ba" t+e %ilin* o% t+e instant case, Case : /%o" 'nnul.ent o% &itle0 because t+e"e !as neit+e" liti*ious conside"ation o% t+e e idence no" any sti,ulations sub.itted by t+e ,a"ties at t+e t"ial- In %act, t+e"e !as no ,"e7t"ial con%e"ence and t+at after f!ur .ears

!f c!urt inactivit." t+e case was dismissed f!r fai ure t! #r!secute2 &+e SC "uled t+at t+e a"*u.ent "aised by t+e "es,ondents is U(&E('BLE- Section 5 o% Rule 1$ o% t+e ROC ,"o ides2 $ection '# Dismissal due to fault of %laintiff# K 1f, for no /ustifiable cause, the %laintiff fails to a%%ear on the date of the %resentation of his evidence in chief on the com%laint, or to %rosecute his action for an unreasonable length of time, or to com%ly with these !ules or any order of the court, the com%laint may be dismissed u%on motion of the defendant or u%on the courtGs own motion, without %re/udice to the right of the defendant to %rosecute his counterclaim in the same or in a se%arate action# 4his dismissal shall have the effect of an ad/udication u%on the merits, unless otherwise declared by the court# 1+e ru e enumerates t+e instances w+ere t+e c!m# aint ma. be dismissed due t! # aintiffJs fau tG /10 i% +e %ails to a,,ea" on t+e date %o" t+e ,"esentation o% +is e idence in c+ie%9 /40 i% +e %ails to ,"osecute +is action %o" an un"easonable len*t+ o% ti.e9 o" /50 i% +e %ails to co.,ly !it+ t+e "ules o" any o"de" o% t+e cou"t- Once a case is dis.issed %o" %ailu"e to ,"osecute, t+is +as t+e e%%ect o% an ad3udication on t+e .e"its and is unde"stood to be !it+ ,"e3udice to t+e %ilin* o% anot+e" action unless ot+e"!ise ,"o ided in t+e o"de" o% dis.issal- In ot+e" !o"ds, unless t+e"e be a ?uali%ication in t+e o"de" o% dis.issal t+at it is !it+out ,"e3udice, t+e dis.issal s+ould be "e*a"ded as an ad3udication on t+e .e"its and is !it+ ,"e3udiceIn t+e case at ba", t+e o"de" dis.issin* Case 4 I Ci il Case (o- 1=DD is based on t+e %ailu"e o% t+e ,lainti%%s as !ell as counsel to a,,ea" on se e"al settin*s des,ite due notices, ,"ecisely %o" t+e "ece,tion o% ,lainti%%s e idence, u,on .otion o% t+e de%endant t+"ou*+ 'tty- )a"6 '"cilla, t+is case is dis.issed %o" %ailu"e to ,"osecuteIt is c ear fr!m t+e af!re)menti!ned !rder t+at said case was dismissed" u#!n #etiti!nersK m!ti!n" f!r fai ure !f #rivate res#!ndents and t+eir c!unse t! attend severa sc+edu ed +earin$s f!r t+e #resentati!n !f t+eir evidence2 Since t+e o"de" did not contain a ?uali%ication !+et+e" sa.e is !it+ o" !it+out ,"e3udice, %ollo!in* Section 5, it is dee.ed to be !it+ ,"e3udice and s+all +a e t+e e%%ect o% an ad3udication on t+e .e"its- ' "ulin* based on a .otion to dis.iss, !it+out any t"ial on t+e .e"its o" %o".al ,"esentation o% e idence, can still be a 3ud*.ent on t+e .e"itsEffect !n c!unterc aim #INGA v. SANTIAGO (!006"

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER$>

Unde" Section 5, Rule 1$ o% t+e 1##$ Rules o% Ci il P"ocedu"e, t+e dis.issal o% t+e co.,laint due to t+e %ault o% ,lainti%% does not necessa"ily ca""y !it+ it t+e dis.issal o% t+e counte"clai., co.,ulso"y o" ot+e"!ise- In %act, t+e dis.issal o% t+e co.,laint is !it+out ,"e3udice to t+e "i*+t o% de%endants to ,"osecute t+e counte"clai.C'C&S2 Petitione" Edua"do Pin*a !as na.ed as one o% t!o de%endants in a co.,laint %o" in3unction %iled in R&C @a.boan*a del Su", by "es,ondent Bei"s o% Ee".an Santia*o, "e,"esented by Ce"nando Santia*o- &+e Co.,laint alle*ed in essence t+at ,etitione" Pin*a and co7 de%endant Saa ed"a +ad been unla!%ully ente"in* t+e coco lands o% t+e "es,ondent, cuttin* !ood and ba.boos and +a" estin* t+e %"uits o% t+e coconut t"ees t+e"einRes,ondents ,"ayed t+at ,etitione" Pin*a and Saa ed"a be en3oined %"o. co..ittin* Qacts o% de,"edationQ on t+ei" ,"o,e"ties, and o"de"ed to ,ay da.a*esIn t+ei" '.ended 'ns!e" !it+ Counte"clai., ,etitione" and +is co7de%endant dis,uted "es,ondents o!ne"s+i, o% t+e ,"o,e"ties in ?uestion, asse"tin* t+at ,etitione"s %at+e", Ed.undo, %"o. !+o. de%endants de"i ed t+ei" inte"est in t+e ,"o,e"ties, +ad been in ,ossession t+e"eo% since t+e 1#5DsBy July o% 4DD>, t+e t"ial o% t+e case +ad not yet been co.,leted- )o"eo e", "es,ondents, as ,lainti%%s, +ad %ailed to ,"esent t+ei" e idence- It a,,ea"s t+at t+e R&C al"eady o"de"ed t+e dis.issal o% t+e co.,laint a%te" "es,ondents counsel +ad sou*+t t+e ,ost,one.ent o% t+e +ea"in* sc+eduled t+en- Bo!e e", t+e o"de" o% dis.issal !as subse?uently "econside"ed by t+e R&C in an O"de" dated # June 4DD>, !+ic+ too6 into account t+e assu"ance o% "es,ondents counsel t+at +e !ould *i e ,"io"ity to t+at case't t+e +ea"in*, ,lainti%%s counsel on "eco"d %ailed to a,,ea", sendin* in +is stead a "e,"esentati e !+o sou*+t t+e ,ost,one.ent o% t+e +ea"in*- Counsel %o" de%endants /!+o include +e"ein ,etitione"0 o,,osed t+e .o e %o" ,ost,one.ent and .o ed instead %o" t+e dis.issal o% t+e case- &+e R&C noted t+at it !as ob ious t+at "es,ondents +ad %ailed to ,"osecute t+e case %o" an un"easonable len*t+ o% ti.e, in %act not +a in* ,"esented t+ei" e idence yet- On t+at *"ound, t+e co.,laint !as dis.issed- 't t+e sa.e ti.e, t+e R&C allo!ed de%endants Qto ,"esent t+ei" e idence e87,a"te-Q Res,ondents %iled a )otion %o" Reconside"ation R&C *"anted "es,ondents )otion %o" Reconside"ation and dis.issin* t+e counte"clai.- Petitione" Pin*a %iled a )otion %o" Reconside"ation, but t+e sa.e !as denied by t+e R&C- Res,ondents %iled an O,,osition to De%endants U"*ent )otion %o" Reconside"ation, !+e"ein t+ey a"*ued t+at t+at Qco.,ulso"y counte"clai.s cannot be ad3udicated inde,endently o% ,lainti%%s cause o% action,Q and Q a conversu, t+e dis.issal o% t+e co.,laint ca""ies !it+ it t+e dis.issal o% t+e co.,ulso"y counte"clai.s-Q1 &+e .atte" !as ele ated to t+is Cou"t di"ectly by !ay o% a Petition %o" Re ie! unde" Rule :> on a ,u"e ?uestion o% la!

ISSUE2 W+et+e" t+e dis.issal o% t+e co.,laint necessa"ily ca""ies t+e dis.issal o% t+e co.,ulso"y counte"clai. NO2 Unde" Section 5, Rule 1$ o% t+e 1##$ Rules o% Ci il P"ocedu"e, t+e dis.issal o% t+e co.,laint due to t+e %ault o% ,lainti%% does not necessa"ily ca""y !it+ it t+e dis.issal o% t+e counte"clai., co.,ulso"y o" ot+e"!ise- In %act, t+e dis.issal o% t+e co.,laint is !it+out ,"e3udice to t+e "i*+t o% de%endants to ,"osecute t+e counte"clai.On a ,"e%ato"y note, t+e R&C, in dis.issin* t+e counte"clai., did not e8,"essly ado,t "es,ondents a"*u.ent t+at t+e dis.issal o% t+ei" co.,laint e8tended as !ell to t+e counte"clai.- Instead, t+e R&C 3usti%ied t+e dis.issal o% t+e counte"clai. on t+e *"ound t+at Qt+e"e is no o,,osition to ;,lainti%%s< )otion %o" Reconside"ation ;see6in* t+e dis.issal o% t+e counte"clai.<-Q &+is e8,lanation is +ollo!, conside"in* t+at t+e"e is no .andato"y "ule "e?ui"in* t+at an o,,osition be %iled to a .otion %o" "econside"ation !it+out need %o" a cou"t o"de" to t+at e%%ect9 and, as ,osited by ,etitione", t+e Q%ailu"e to %ile an o,,osition to t+e Plainti%%s )otion %o" Reconside"ation is de%initely not one a.on* t+e establis+ed *"ounds %o" dis.issal ;o% t+e counte"clai.<-Q Still, t+e dis.issal o% t+e counte"clai. by t+e R&C bet"ays at e"y least a tacit "eco*nition o% "es,ondents a"*u.ent t+at t+e counte"clai. did not su" i e t+e dis.issal o% t+e co.,laint- 't .ost, t+e dis.issal o% t+e counte"clai. o e" t+e ob3ection o% t+e de%endant /+e"ein ,etitione"0 on *"ounds ot+e" t+an t+e .e"its o% t+e counte"clai., des,ite t+e ,"o isions unde" Rule 1$ o% t+e 1##$ Rules o% Ci il P"ocedu"e, constitutes a debatable ?uestion o% la!, ,"esently .e"itin* 3usticiability t+"ou*+ t+e instant action1+e d!ctrine t+at t+e c!m# aint ma. n!t be dismissed if t+e c!unterc aim cann!t be inde#endent . ad4udicated is n!t avai ab e t!" and was n!t intended f!r t+e benefit !f" a # aintiff w+! #revents !r de a.s t+e #r!secuti!n !f +is !wn c!m# aint- Ot+e"!ise, t+e t"ial o% counte"clai.s !ould be .ade to de,end u,on t+e .aneu e"s o% t+e ,lainti%%, and t+e "ule !ould o%%e" a ,"e.iu. to e8in* o" delayin* tactics to t+e ,"e3udice o% t+e counte"clai.ants- It is in t+e sa.e s,i"it t+at !e +a e "uled t+at a co.,laint .ay not be !it+d"a!n o e" t+e o,,osition o% t+e de%endant !+e"e t+e counte"clai. is one t+at a"ises %"o., o" is necessa"ily connected !it+, t+e ,lainti%%s action and cannot "e.ain ,endin* %o" inde,endent ad3udication'cco"din*ly, t+e R&C clea"ly e""ed !+en it o"de"ed t+e dis.issal o% t+e counte"clai., since Section 5, Rule 1$ .andates t+at t+e dis.issal o% t+e co.,laint is !it+out ,"e3udice to t+e "i*+t o% t+e de%endant to ,"osecute t+e counte"clai. in t+e sa.e o" se,a"ate action- I% t+e R&C !e"e to dis.iss t+e counte"clai., it s+ould be on t+e .e"its o% suc+ counte"clai.- Re e"sal o% t+e R&C is in o"de", and a "e.and is necessa"y %o" t"ial on t+e .e"its o% t+e counte"clai.#ER2IN ELMER v. DA2ILA TRADING (!00'" E8t"ate""ito"ial se" ice o% su..ons a,,lies only !+e"e t+e action is in rem o" ?uasi in rem, but not i% an action is in %ersonam-

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER$=

C'C&S2 Da6ila &"adin* Co", /Da6ila0 ente"ed into a Dist"ibution '*"ee.ent !it+ Pe"6in7El.e" Sin*a,o"e PteLtd- /PES0 !+ic+ a,,ointed Da6ila as sole dist"ibuto" o% its ,"oducts in t+e P+ili,,ines- PES !as obli*ated to *i e Da6ila a co..ission %o" t+e sale o% its ,"oducts in t+e P+ili,,ines- Da6ila !as *"anted t+e "i*+t to ,u"c+ase and sell t+e ,"oducts o% PES- &+e a*"ee.ent %u"t+e" sti,ulated t+at Da6ila s+all o"de" t+e ,"oducts o% PES, !+ic+ it s+all sell in t+e P+ili,,ines, eit+e" %"o. PES itsel% o" %"o. PEIPBo!e e", PES unilate"ally te".inated t+e Dist"ibution '*"ee.ent, ,"o.,tin* Da6ila to %ile be%o"e t+e R&C a Co.,laint %o" Collection o% Su. o% )oney and Da.a*es !it+ P"aye" %o" Issuance o% a W"it o% 'ttac+.ent a*ainst PES and its a%%iliate, Pe"6in7El.e" Inst"u.ents P+ili,,ines Co",o"ation /PEIP0- R&C denied "es,ondents ,"aye"Da6ila %iled E87Pa"te )otions %o" Issuance o% Su..ons and %o" Lea e o% Cou"t to De,utiHe Da6ilas Eene"al )ana*e" /DE)0 to Se" e Su..ons Outside o% t+e P+ili,,ines- R&C *"anted t+is .otion- &+us, an 'lias Su..ons !as issued by t+e R&C to PES- But t+e said 'lias Su..ons !as se" ed and "ecei ed by Pe"6in7El.e" 'sia /PE'0, a co",o"ation alle*edly un"elated to PESPEIP .o ed to dis.iss t+e Co.,laint %iled by Da6ilaPE', on t+e ot+e" +and, sent lette"s to Da6ila and R&C to in%o". t+e. o% t+e !"on*%ul se" ice o% su..ons'cco"din*ly, Da6ila %iled an E87Pa"te )otion to 'd.it '.ended Co.,laint, to*et+e" !it+ t+e '.ended Co.,laint clai.in* t+at /10 PE' +ad beco.e a sole ,"o,"ieto"s+i, o!ned by t+e PES, /40 PES c+an*ed its na.e to PE', /50 suc+ c+an*es did not a oid its due and outstandin* obli*ations to Da6ila, and /:0 t+e na.e o% PES in t+e co.,laint s+ould be c+an*ed to PE'- R&C ad.itted t+e '.ended Co.,laintDa6ila %iled anot+e" )otion %o" t+e Issuance o% Su..ons and %o" Lea e o% Cou"t to De,utiHe DE) to se" e su..ons outside t+e P+ili,,ines- R&C *"anted t+e .otion- R&C t+us issued su..ons and t+e DE) !ent to Sin*a,o"e and se" ed su..ons on PES)ean!+ile, R&C denied t+e )otion to Dis.iss %iled by PEIP, co.,ellin* t+e latte" to %ile its 'ns!e" to t+e '.ended Co.,laintPES %iled !it+ t+e R&C a S,ecial ',,ea"ance and )otion to Dis.iss t+e '.ended Co.,laint, !+ic+ !e"e denied- It +eld t+at e en t+ou*+ t+e '.ended Co.,laint is ,"i.a"ily %o" da.a*es, it does "elate to a ,"o,e"ty o% PES, to !+ic+ t+e latte" +as a clai. inte"est, o" an actual o" contin*ent lien, !+ic+ !ill .a6e it %all unde" one o% t+e "e?uisites %o" e8t"ate""ito"ial se" ice- PES %iled a Petition %o" Ce"tio"a"i unde" Rule => !it+ a,,lication %o" te.,o"a"y "est"ainin* o"de" andIo" ,"eli.ina"y in3unction be%o"e t+e C'- &+e C' a%%i".ed t+e R&C O"de"sISSUE2 .hether summons were %ro%erly served under the >nd or 8th instance of e,tra2territorial service NO2 E8t"ate""ito"ial se" ice o% su..ons a,,lies only !+e"e t+e action is in "e. o" ?uasi in "e., but not i% an action is in %ersonam- In t+e case at ba", t+e"e can ne e" be a alid e8t"ate""ito"ial se" ice o% su..ons u,on it, because t+e case in ol in* collection o% a su. o% .oney and da.a*es is an action in %ersonam, as it deals !it+ t+e ,e"sonal liability o% PES by "eason o% t+e
)E(DE@, IV'( VIA&OR /4D, 150

alle*ed unilate"al te".ination o% t+e Dist"ibution '*"ee.ent- &+e ob3ecti e sou*+t in Da6ilas Co.,laint !as to establis+ a clai. a*ainst PES- )o"eo e", &+e action instituted by Da6ila a%%ects t+e ,a"ties alone, not t+e !+ole !o"ld&+us, bein* an action in ,e"sona., ,e"sonal se" ice o% su..ons !it+in t+e P+ili,,ines is necessa"y in o"de" %o" t+e R&C to alidly ac?ui"e 3u"isdiction o e" t+e ,e"son o% PES, and t+is is not ,ossible in t+e ,"esent case because t+e PES is a non7"esident and is not %ound !it+in t+e P+ili,,ines- Da6ilas alle*ation in its '.ended Co.,laint t+at PES +ad ,e"sonal ,"o,e"ty !it+in t+e P+ili,,ines in t+e %o". o% s+a"es o% stoc6 in PEIP did not .a6e t+e case %all unde" any o% t+e %ou" instances .entioned in Section 1>, Rule 1: o% t+e Rules o% Cou"t, as to con e"t t+e action in %ersonam to an action in rem o" ?uasi in rem and, subse?uently, .a6e t+e e8t"ate""ito"ial se" ice o% su..ons u,on t+e ,etitione" alid&+e 4nd instance %o" e8t"a7te""ito"ial se" ice +as no a,,lication in t+e case- &+e action %o" collection o% a su. o% .oney and da.a*es !as ,u"ely based on t+e ,e"sonal liability o% t+e PES- Co" t+e action to be one %allin* unde" t+e 4nd instance, t+e .ain sub3ect .atte" o% t+e action .ust be t+e ,"o,e"ty itsel% o% t+e PES in t+e P+ili,,ines and in suc+ instance, 3ud*.ent !ill be li.ited to t+e res- Bo!e e", t+e alle*ations .ade by t+e "es,ondent t+at t+e ,etitione" +as ,"o,e"ty !it+in t+e P+ili,,ines in su,,o"t o% its a,,lication %o" t+e issuance o% a !"it o% attac+.ent !as actually denied by t+e R&C(eit+e" does t+e alle*ation t+at PES +ad ,e"sonal ,"o,e"ty !it+in t+e P+ili,,ines in t+e %o". o% s+a"es o% stoc6 in PEIP con e"t t+e case %"o. an action in %ersonam to one ?uasi in rem, so as to ?uali%y said case unde" t+e : t+ instance o% e8t"a7te""ito"ial se" ice- W+at is "e?ui"ed is not a .e"e alle*ation o% t+e e8istence o% ,e"sonal ,"o,e"ty belon*in* to t+e non7"esident de%endant !it+in t+e P+ili,,ines but t+at t+e non7"esident de%endants ,e"sonal ,"o,e"ty located !it+in t+e P+ili,,ines .ust +a e been actually attac+ed- E idently, PESs ,e"sonal ,"o,e"ty !it+in t+e P+ili,,ines, in t+e %o". o% s+a"es o% stoc6 in PEIP, +ad not been attac+ed9 +ence, t+e case %o" collection o% su. o% .oney and da.a*es "e.ains an action in ,e"sona.In t+e case at ba", t+e"e can ne e" be a alid e8t"ate""ito"ial se" ice o% su..ons u,on it, because t+e case in ol in* collection o% a su. o% .oney and da.a*es is an action in %ersonam, as it deals !it+ t+e ,e"sonal liability o% PES by "eason o% t+e alle*ed unilate"al te".ination o% t+e Dist"ibution '*"ee.ent- &+e ob3ecti e sou*+t in Da6ilas Co.,laint !as to establis+ a clai. a*ainst PES- )o"eo e", &+e action instituted by Da6ila a%%ects t+e ,a"ties alone, not t+e !+ole !o"ld&+us, bein* an action in ,e"sona., ,e"sonal se" ice o% su..ons !it+in t+e P+ili,,ines is necessa"y in o"de" %o" t+e R&C to alidly ac?ui"e 3u"isdiction o e" t+e ,e"son o% PES, and t+is is not ,ossible in t+e ,"esent case because t+e PES is a non7"esident and is not %ound !it+in t+e P+ili,,ines- Da6ilas alle*ation in its '.ended Co.,laint t+at PES +ad ,e"sonal ,"o,e"ty !it+in t+e P+ili,,ines in t+e %o". o% s+a"es o% stoc6 in PEIP did not .a6e t+e case %all unde" any o% t+e %ou" instances .entioned in Section 1>, Rule 1: o% t+e Rules o% Cou"t, as

CIVIL PROCEDURE REVIEWER$$

to con e"t t+e action in %ersonam to an action in rem o" ?uasi in rem and, subse?uently, .a6e t+e e8t"ate""ito"ial se" ice o% su..ons u,on t+e ,etitione" alidRemed. !f # aintiff 2O v. #NB (4(% SCRA !%) !006" Conside"in* t+at an o"de" o% dis.issal %o" %ailu"e to ,"osecute +as t+e e%%ect o% an ad3udication on t+e .e"its, ,etitione"s counsel s+ould +a e %iled a notice o% a,,eal !it+ t+e a,,ellate cou"t !it+in t+e "e*le.enta"y ,e"iodInstead o% %ilin* a ,etition unde" Rule :> o% t+e Rules o% Cou"t, t+e ,"o,e" "ecou"se !as an o"dina"y a,,eal !it+ t+e Cou"t o% ',,eals unde" Rule :1C'C&S2 &+is is a ,etition %o" "e ie! on ce"tio"a"i assailin* t+e O"de" o% t+e Re*ional &"ial Cou"t o% Laoa* City-&+e case ste..ed %"o. an action %iled by ,etitione"s in t+e t"ial cou"t %o" 'nnul.ent o% )o"t*a*e, E8t"a73udicial Co"eclosu"e Sale, 'nnul.ent o% &"ans%e" Ce"ti%icate and Deed o% Sale !it+ a P"aye" %o" P"eli.ina"y In3unction and Rest"ainin* O"de"- &+e co.,laint alle*ed t+at t+e assailed .o"t*a*e and t+e %o"eclosu"e ,"oceedin*s !e"e null and oid since t+e !"itten consent o% ,etitione"s, as bene%icia"ies o% t+e .o"t*a*ed ,"o,e"ty, !e"e not secu"edRes,ondent ban6 denied t+e clai. and alle*ed t+at in t+e e8ecution o% t+e .o"t*a*e, ,etitione"s in %act *a e t+ei" consentDurin$ t+e c!urse !f t+e #r!ceedin$s" #etiti!ners and t+eir c!unse fai ed t! attend a sc+edu ed tria 2 U,on .otion o% "es,ondent ban6, t+e co.,laint !as dis.issed- W+en t+e case !as called, 'ttyLo"enHo Castillo, counsel %o" t+e ,lainti%%s did not a,,ea" des,ite ,"o,e" notice- (o ,lainti%% a,,ea"ed- 'tty- Edua"do 'lcanta"a, counsel %o" de%endant ban6 a,,ea"ed'tty- 'lcanta"a .ani%ested t+at t+e"e !e"e nu.e"ous occasions in t+e ,ast !+en ,lainti%%s and counsel did not attend- Be ,ointed out t+at t+e"e is an a,,a"ent lac6 o% inte"est on t+e ,a"t o% ,lainti%% to ,"osecute t+e action- Be .o ed to dis.iss t+e case on t+at le*al *"oundPetitione"s %iled a .otion %o" "econside"ation clai.in* t+at t+ey +a e been continuously ,u"suin* ne*otiations !it+ "es,ondent ban6 to ,u"c+ase bac6 t+e ,"o,e"ty and +a e *ained ,ositi e "esults- Res,ondent ban6 counte"ed t+at %"o. t+e ti.e t+e co.,laint !as %iled, a ,e"iod o% t+"ee yea"s +ad ela,sed but ,etitione"s %ailed to ,"osecute t+ei" case, s+o!in* lac6 o% inte"est in t+e ea"ly "esolution t+e"eo%- &+e t"ial cou"t denied t+e .otion %o" "econside"ationISSUE2 .hether the %etitioners, who failed to attend a scheduled trial and dismissed by the court, may file a %etition for review on certiorari under !ule 89 NO2 On t+e ,"ocedu"al as,ect, !e %ind t+at ,etitione"s e""ed in %ilin* a ,etition %o" "e ie! on ce"tio"a"i unde" Rule :> o% t+e Rules o% Cou"t instead o% %ilin* an a,,eal !it+ t+e Cou"t o% ',,eals- Section 5, Rule 1$ o% t+e Rules o% Cou"t ,"o ides2

SEC- 5- Dismissal due to fault of %laintiff#-I%, %o" no 3usti%iable cause, t+e ,lainti%% %ails to a,,ea" on t+e date o% t+e ,"esentation o% +is e idence in c+ie% on t+e co.,laint, o" to ,"osecute +is action %o" an un"easonable len*t+ o% ti.e, o" to co.,ly !it+ t+ese Rules o" any o"de" o% t+e cou"t, t+e co.,laint .ay be dis.issed u,on t+e .otion o% t+e de%endant o" u,on t+e cou"ts o!n .otion, !it+out ,"e3udice to t+e "i*+t o% t+e de%endant to ,"osecute +is counte"clai. in t+e sa.e o" in a se,a"ate action1+is dismissa s+a +ave t+e effect !f an ad4udicati!n u#!n t+e merits" un ess !t+erwise dec ared b. t+e c!urt2 U,on t+e o"de" o% dis.issal, ,etitione"s counsel %iled a ti.ely .otion %o" "econside"ation !+ic+ !as denied by t+e t"ial cou"t&+e "ule is clea"- In o"de" to ,e"%ect an a,,eal all t+at is "e?ui"ed is a ,"o %o".a notice o% a,,eal- Pe"+a,s due to %ailu"e to %ile a notice o% a,,eal !it+in t+e "e.ainin* t!o days o% t+e a,,eal ,e"iod, ,etitione"s counsel instead %iled t+e instant ,etition- &+e "ules o% ,"ocedu"e, +o!e e", do not e8ist %o" t+e con enience o% t+e liti*ants- &+ese "ules a"e establis+ed to ,"o ide o"de" to and en+ance t+e e%%iciency o% ou" 3udicial syste.- &+ey a"e not to be t"i%led !it+ li*+tly o" o e"loo6ed by .e"e e8,edience o% in o6in* Qsubstantial 3ustice-Q Pr!cedura aw +as its !wn rati!na e in t+e !rder . administrati!n !f 4ustice" name ." t! ensure t+e effective enf!rcement !f substantive ri$+ts b. #r!vidin$ f!r a s.stem t+at !bviates arbitrariness" ca#rice" des#!tism !r w+imsica it. in t+e sett ement !f dis#utes2 1+e enf!rcement !f #r!cedura ru es is n!t antit+etica t! t+e substantive ri$+ts !f t+e iti$ants2 &+e e8,editious dis,osition o% cases is as .uc+ t+e duty o% t+e ,lainti%% as t+e cou"t- It .ust be "e.e.be"ed t+at a de%endant in a case li6e!ise +as t+e "i*+t to t+e s,eedy dis,osition o% t+e action %iled a*ainst +i.$ conside"in* t+at any delay in t+e ,"oceedin*s entail ,"olon*ed an8iety and aluable ti.e !astedIn t+e case at ba", t+"ee yea"s +a e since la,sed %"o. t+e %ilin* o% t+e co.,laint on )ay 5, 4DD4 and t+e o"de" o% dis.issal on ',"il 4$, 4DD>- Petitione"s %ailu"e to ,"osecute t+ei" case and ,"oceed !it+ t+e t"ial du"in* t+e s,an o% t+"ee yea"s leads to no ot+e" conclusion t+an t+at ,etitione"s +a e no inte"est in seein* t+ei" case te".inated at t+e ea"liest ,ossible ti.e9 o" t+at ,etitione"s case is un.e"ito"ious %"o. ince,tion- W+ic+e e" t+e case .ay be, t+e dis.issal o"de" o% t+e t"ial cou"t stand and is no! i..utablePetitione"s cannot clai. t+at t+ey !e"e de,"i ed o% due ,"ocess- &"ue, t+e "i*+t to due ,"ocess sa%e*ua"ds t+e o,,o"tunity to be +ea"d and to sub.it any e idence one .ay +a e in su,,o"t o% +is clai. o" de%ense- (onet+eless, !e +a e ti.e and a*ain +eld t+at !+e"e t+e o,,o"tunity to be +ea"d, eit+e" t+"ou*+ e"bal a"*u.ents o" ,leadin*s, is acco"ded, and t+e ,a"ty can Q,"esent its sideQ o" de%end its Qinte"est in due cou"se,Q t+e"e is no denial o% due ,"ocessW+at t+e la! ,"osc"ibes is t+e lac6 o% o,,o"tunity to be +ea"d- Petitione"s +ad t+e o,,o"tunity to ,"esent t+ei" case and clai. t+e "elie% t+ey see6- But t+ei" inad e"tence and

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWER$F

lac6 o% ci"cu.s,ect "ende"s t+e t"ial cou"ts o"de" dis.issin* t+ei" case %inal and e8ecuto"yDismissa !f c!unterc aim SEC- :- Dismissal of counterclaim, cross2claim, or third2 %arty com%laint#-&+e ,"o isions o% t+is Rule s+all a,,lyto t+e dis.issal o% any counte"clai., c"oss7clai., o" t+i"d7 ,a"ty co.,laint- ' olunta"y dis.issal by t+e clai.ant by notice as in section 1 o% t+is Rule, s+all be .ade be%o"e a "es,onsi e ,leadin* o" a .otion %o" su..a"y 3ud*.ent is se" ed o", i% t+e"e is none, be%o"e t+e int"oduction o% e idence at t+e t"ial o" +ea"in*- /:n0

o" not a collusion bet!een t+e ,a"ties e8ists, and i% t+e"e is no collusion, to inte" ene %o" t+e State in o"de" to see to it t+at t+e e idence sub.itted is not %ab"icated- /Sec- 5, Rule #0 W+en ma. a defendant be dec ared in defau t/ &'( ,ai ure t! fi e answer &5( ,ai ure t! furnis+ c!#. !f answer &7( ,ai ure t! a##ear at #re)tria &A( ,ai ure t! c!m# . wit+ m!des !f disc!ver. W+en a !wed Effect

DE,AUL1 &Ru e <" Sec2 7( Nature in $enera ' de%endin* ,a"ty s+all be decla"ed in de%ault !+en /10 )round* Be %ails to ans!e" !it+in t+e ti.e allo!ed t+e"e%o", t+e cou"t s+all, /40 &+e clai.in* ,a"ty %iles a .otion to decla"e t+e de%endin* ,a"ty in de%ault, %u"nis+in* ,"oo% o% %ailu"e to ans!e" /50 Said ,a"ty *i es notice o% suc+ .otion to t+e de%endin* ,a"ty, &+e cou"t s+all ,"oceed to "ende" 3ud*.ent *"antin* t+e clai.ant suc+ "elie% as +is ,leadin* .ay !a""ant, unless t+e cou"t in its disc"etion "e?ui"es t+e clai.ant to sub.it e idence Suc+ "ece,tion o% e idence .ay be dele*ated to t+e cle"6 o% cou"t- /1a, R1F0 /a0 +ffect of order of default#- ' ,a"ty in de%ault s+all be entitled to notice o% subse?uent ,"oceedin*s but (O& to ta6e ,a"t in t+e t"ial/b0 !elief from order of default#- ' ,a"ty decla"ed in de%ault .ay at any ti.e a%te" notice t+e"eo% and be%o"e 3ud*.ent %ile a .otion unde" oat+ to set aside t+e o"de" o% de%ault u,on ,"o,e" s+o!in* t+at +is %ailu"e to ans!e" !as due to %"aud, accident, .ista6e o" e8cusable ne*li*ence and t+at +e +as a .e"ito"ious de%ense- In suc+ case, t+e o"de" o% de%ault .ay be set aside on suc+ te".s and conditions as t+e 3ud*e .ay i.,ose in t+e inte"est o% 3ustice/c0 +ffect of %artial default#-W+en a ,leadin* asse"tin* a clai. states a co..on cause o% action a*ainst se e"al de%endin* ,a"ties, so.e o% !+o. ans!e" and t+e ot+e"s %ail to do so, t+e cou"t s+all t"y t+e case a*ainst all u,on t+e ans!e"s t+us %iled and "ende" 3ud*.ent u,on t+e e idence ,"esented/d0 +,tent of relief to be awarded#- ' 3ud*.ent "ende"ed a*ainst a ,a"ty in de%ault s+all not e8ceed t+e a.ount o" be di%%e"ent in 6ind %"o. t+at ,"ayed %o" no" a!a"d unli?uidated da.a*es/e0 .here no defaults allowed#-I% t+e de%endin* ,a"ty in an action %o" annul.ent o" decla"ation o% nullity o% .a""ia*e o" %o" le*al se,a"ation %ails to ans!e", t+e cou"t s+all o"de" t+e ,"osecutin* atto"ney to in esti*ate !+et+e"
)E(DE@, IV'( VIA&OR /4D, 150

GA-UDO v. TRB (!006" (o inco.,atibility bet- Section 5, Rule # o% t+e 1##$ Rules o% Ci il P"ocedu"e and t+e "ule on ,"e,onde"ance o% e idence unde" Section 1, Rule 155 o% t+e Rules o% Cou"t C'C&S2 Ps %iled a co.,laint be%o"e R&C o% PC a*ainst R see6in* %o" annul.ent o% t+e e8t"a73udicial %o"eclosu"e and auction sale .ade by city s+e"i%% o% ,a"cel o% land co e"ed by &C& (o- 1=$11 o% t+e RD o% PC t+e con entional "ede.,tion t+e"eo%, and ,"ayed %o" da.a*es and t+e issuance o% a !"it o% ,"eli.ina"y in3unctionCo.,laint alle*ed t+at2 P C+ua obtained a loan %"o. R ban6 in t+e a.ount o% P$>6 secu"ed by a "eal estate .o"t*a*e o e" a ,a"cel o% land, and o!ned in co..on by Ps- t+e loan !as not ,aid, R co..enced e8t"a73udicial %o"eclosu"e, ,"o,e"ty !as sold in t+e auction sale to R %o" t+e su. o% P4:-#6 Suc+ sale !as tainted !it+ i""e*ula"ity because, t+e bid ,"ice !as s+oc6in*ly o" unconscionably, lo!9 t+at t+e ot+e" Ps /Ea3udos0 %ailed to "edee. t+e ,"o,e"ty due to t+ei" lac6 o% 6no!led*e o% t+ei" "i*+t o% "ede.,tion, and !ant o% su%%icient education9 t+at C+ua o%%e"ed to buy bac6, and R also a*"eed to sell bac6, t+e %o"eclosed ,"o,e"ty, on t+e unde"standin* t+at C+ua !ould ,ay Rt+e a.ount o% P:D6, t+e su. t+at t+e ban6 ,aid at t+e auction sale, ,lus inte"est9 t+at C+ua .ade an initial ,ay.ent P:6,9 t+at, in a sudden c+an*e o% ,osition, R !"ote C+ua as6in* t+at +e could "e,u"c+ase t+e ,"o,e"ty, but based on t+e cu""ent .a"6et alue t+e"eo%9 R !"ote C+ua "e?ui"in* +i. to tende" a ne! o%%e"R %iled its ans!e" !it+ counte"clai., asse"tin* t+at t+e %o"eclosu"e sale o% t+e .o"t*a*ed ,"o,e"ty !as done in acco"dance !it+ la!9 and t+at t+e bid ,"ice !as neit+e" unconscionable, no" s+oc6in*ly lo!9 t+at Ps sle,t on t+ei" "i*+ts !+en t+ey %ailed to "edee. t+e ,"o,e"ty !it+in t+e one yea" statuto"y ,e"iodQP"e7t"ial +a in* been concluded, t+e ,a"ties ente"ed u,on t"ial, a bi* con%la*"ation +it t+e City Ball o% PC /a.aHin*Y0 !+ic+ dest"oyedt+e "eco"ds o% t+e case'%te" t+e "eco"ds !e"e "econstituted, t+e %o"eclosed ,"o,e"ty !as sold by R to t+e Ce"o%e"" Realty Co",o"ation, and t+at t+e notice o% lis ,endens annotated on t+e ce"ti%icate o% title +ad al"eady been cancelled- P !it+ lea e o% cou"t, a.ended t+ei" co.,laint, but t+e &"ial Cou"t

CIVIL PROCEDURE REVIEWER$#

dis.issed t+e case W!it+out ,"e3udice due to Ps %ailu"e to ,ay additional %ilin* %eesP "e7%iled t+e co.,laint !it+ t+e sa.e Cou"t, i.,leadin* as additional de%endants t+e Ce"o%e"" Realty Co",o"ation and additional cause o% action, t+at ne! de%endants cons,i"ed !it+ R in cancelin* t+e notice o% lis ,endensSu..ons !as se" ed on R,P %iled a .otion to set case %o" ,"e7t"ial, !+ic+ .otion !as denied by t+e &C in its O"de" o% on t+e *"ound t+at R ban6 +as not yet %iled its ans!e"- P %iled a .otion to decla"e R in de%ault, alle*in* t+at no ans!e" +as been %iled des,ite t+e se" ice o% su..ons- &C decla"ed t+e .otion sub.itted %o" "esolution u,on sub.ission by Ps o% ,"oo% o% se" ice o% t+e .otion on R- U,on *i in* ,"oo%, R !as decla"ed in de%ault- P !e"e allo!ed by t+e Cou"t allo!ed to ,"esent e idence e8 ,a"te' ,a"tial decision !as .adeR %iled a .otion to set aside ,a"tial decision by de%ault and ad.it t+at t+ei" 'ns!e" !it+ counte"clai.2 a e""ed t+at t+e e""oneous %ilin* o% said ans!e" !as due to an +onest .ista6e o% t+e ty,ist and inad e"tence o% its counsel-)otion !as deniedRes,ondent ban6 a,,ealed t+e Pa"tial Decision to t+e C' !+ic+ "uled in %a o" o% RISSUE2 W+et+e" C' e""ed in %ailin* to a,,ly t+e ,"o isions o% Section 5, Rule # o% t+e 1##$ Rules o% Ci il P"ocedu"e and in a,,lyin* instead t+e "ule on ,"e,onde"ance o% e idence unde" Section 1, Rule 155 o% t+e Rules o% Cou"tNO2 &+e Petition +as no .e"itPs a"*ue t+at t+e ?uantu. o% e idence %o" 3ud*.ents %lo!in* %"o. a de%ault o"de" unde" Section 5 o% Rule # is not t+e sa.e as t+at ,"o ided %o" in Section 1 o% Rule 155Bet!een t+e t!o "ules, t+e"e is no inco.,atibility t+at !ould ,"eclude t+e a,,lication o% eit+e" one o% t+e.- &o be*in !it+, Section 5 o% Rule # *o e"ns t+e ,"ocedu"e !+ic+ t+e t"ial cou"t is di"ected to ta6e !+en a de%endant %ails to %ile an ans!e"- 'cco"din* to t+is ,"o ision, t+e cou"t Qs+all ,"oceed to "ende" 3ud*.ent *"antin* t+e clai.ant suc+ "elie% as +is ,leadin* .ay !a""ant,Q sub3ect to t+e cou"ts disc"etion on !+et+e" to "e?ui"e t+e ,"esentation o% e idence e8 ,a"te- &+e sa.e ,"o ision also sets do!n *uidelines on t+e natu"e and e8tent o% t+e "elie% t+at .ay be *"anted- In ,a"ticula", t+e cou"ts 3ud*.ent Qs+all not e8ceed t+e a.ount o" be di%%e"ent in 6ind %"o. t+at ,"ayed %o" no" a!a"d unli?uidated da.a*es-Q ,a"ties .ust "ely on t+e st"en*t+ o% t+ei" o!n e idence, not u,on t+e !ea6ness o% t+e de%ense o%%e"ed by t+ei" o,,onent- &+is ,"inci,le +olds t"ue, es,ecially !+en t+e latte" +as +ad no o,,o"tunity to ,"esent e idence because o% a de%ault o"de"' de%aulted de%endant is not actually t+"o!n out o% cou"t- W+ile in a sense it .ay be said t+at by de%aultin* +e lea es +i.sel% at t+e .e"cy o% t+e cou"t, t+e "ules see to it t+at any 3ud*.ent a*ainst +i. .ust be in acco"dance !it+ la!- &+e e idence to su,,o"t t+e ,lainti%%s cause is, o% cou"se, ,"esented in +is absence, but t+e cou"t is not su,,osed to ad.it t+at !+ic+ is basically inco.,etent'lt+ou*+ t+e de%endant !ould not be in a ,osition to
)E(DE@, IV'( VIA&OR /4D, 150

ob3ect, ele.enta"y 3ustice "e?ui"es t+at only le*al e idence s+ould be conside"ed a*ainst +i.- I% t+e e idence ,"esented s+ould not be su%%icient to 3usti%y a 3ud*.ent %o" t+e ,lainti%%, t+e co.,laint .ust be dis.issed- 'nd i% an un%a o"able 3ud*.ent s+ould be 3usti%iable, it cannot e8ceed in a.ount o" be di%%e"ent in 6ind %"o. !+at is ,"ayed %o" in t+e co.,laintIn su., !+ile ,etitione"s !e"e allo!ed to ,"esent e idence e8 ,a"te unde" Section 5 o% Rule #, t+ey !e"e not e8cused %"o. establis+in* t+ei" clai.s %o" da.a*es by t+e "e?ui"ed ?uantu. o% ,"oo% unde" Section 1 o% Rule 155Stated di%%e"ently, any ad anta*e t+ey .ay +a e *ained %"o. t+e e8 ,a"te ,"esentation o% e idence does not lo!e" t+e de*"ee o% ,"oo% "e?ui"ed- Clea"ly t+en, t+e"e is no inco.,atibility bet!een t+e t!o "ules*LASON ENTER#RISES v. CA (&(0 SCRA !6 (%%%" /10 W+e"e t+e counsel %ailed ob3ect on t+e *"ound o% lac6 o% notice to a )otion add"essed to a %o".e" counsel, and !as *"anted by t+e t"ial cou"t 5D days to %ile +is o,,osition to it, t+e ci"cu.stances clea"ly 3usti%y a de,a"tu"e %"o. t+e lite"al a,,lication o% t+e notice o% +ea"in* "ule/40 &+e issuance o% an o"de" o% de%ault is a condition sine ?ua non in o"de" t+at a 3ud*.ent by de%ault be clot+ed !it+ alidityCu"t+e".o"e, it is a le*al i.,ossibility to decla"e a ,a"ty7de%endant to be in de%ault be%o"e it !as alidly se" ed su..onsC'C&S2 SeiHu"e ,"oceedin*s !e"e +eld o e" t+e ca"*o o% O.e*as essel, MJ@ $tar 'ce, !+ile it !as doc6ed in t+e PP' co.,ound at La Union- La Union !as +it by 5 ty,+oons, !+ic+ da.a*ed t+e essel- Because o% t+is, O.e*a ente"ed into a sal a*e a*"ee.ent !it+ Du"a,"oo% Se" ices to secu"e and "e,ai" t+e essel %o" U1 .illion and %i%ty ,e"cent />DL0 o% t+e ca"*o a%te" all e8,enses, cost and ta8es&+e Dist"ict Collecto" o% Custo.s li%ted t+e !a""ant o% seiHu"e, but t+e Custo.s Co..issione" declined to issue a clea"ance9 instead, +e %o"%eited t+e essel and its ca"*o&+is ,"o.,ted Du"a,"oo% to en%o"ce its ,"e%e""ed sal o"s lien by %ilin* !it+ t+e R&C a ,etition %o" certiorari, ,"o+ibition and mandamus assailin* t+e actions o% t+e Custo.s O%%ice"s, and i.,leadin* PP' and )ed Line P+ili,,ines, Inc- as "es,ondentsDu"a,"oo% a.ended its ,etition to include t+e %o".e" Dist"ict Collecto", and ot+e" co.,anies in ol ed, includin* Vlason Ente","ises- In bot+ Petitions, Du"a,"oo% %ailed to alle*e anyt+in* ,e"tainin* to Vlason Ente","ises, o" any ,"aye" %o" "elie% a*ainst itSu..onses %o" t+e a.ended Petition !e"e se" ed- Du"a,"oo% .o ed se e"al ti.es to decla"e t+e "es,ondents it i.,leaded in de%ault- Out o% t+ose "es,ondents, only t+e %ollo!in* !e"e decla"ed by R&C in de%ault2 t+e Sin*6on* &"adin* Co-, Co..issione" )ison, MJ@ $tar Ace and O.e*a- Du"a,"oo% %iled an e, %arte

CIVIL PROCEDURE REVIEWERFD

)otion to ,"esent e idence a*ainst t+e de%aultin* "es,ondents, !+ic+ !as *"antedDu"a,"oo% alle*ed t+at Vlason Ente","ises, t+"ou*+ constant inti.idation and +a"ass.ent in utiliHin* t+e PP' )ana*e.ent o% La Union, caused Du"a,"oo% to incu" +ea y o e"+ead e8,enses, causin* i""e,a"able da.a*es o% about P5 )illion !o"t+ o% s+i, tac6les, "i*s, and a,,u"tenances includin* "ada" antennas and a,,a"atuses, !+ic+ !e"e ta6en su""e,titiously by ,e"sons !o"6in* %o" Vlason Ente","ises o" its a*ents&+e R&C "uled t+at in %a o" o% Du"a,"oo% and o"de"ed Vlason to ,ay P5 )illion !o"t+ o% da.a*esDu"a,"oo% and t+e ot+e" co.,anies ente"ed into a co.,"o.ise a*"ee.ent, e8ce,t VlasonDu"a,"oo% .o ed %o" t+e e8ecution o% 3ud*.ent&+e )otion !as *"anted and a W"it o% E8ecution !as issuedVlason Ente","ises %iled a )otion %o" Reconside"ation add"essed to Du"a,"oo%s counsel, 'ttyConce,cion, on t+e *"ound t+at it !as alle*edly not i.,leaded as a de%endant, se" ed su..ons o" decla"ed in de%ault, and +ence Du"a,"oo% .ay not ,"esent e idence a*ainst it in de%ault- Du"a,"oo% o,,osed t+e )otion, a"*uin* t+at it !as a .e"e sc"a, o% ,a,e" due to its de%ecti e notice o% +ea"in*Des,ite t+is )otion, t+e auction sale !as conducted- &+e t"ial cou"t o"de"ed t+e de,uty s+e"i%%s to cease and desist %"o. i.,le.entin* t+e W"it o% E8ecution and %"o. le yin* on t+e ,e"sonal ,"o,e"ty o% t+e de%endants- &+e o"de" !as un+eededDu"a,"oo% %iled !it+ t+e C' a Petition %o" Certiorari and P"o+ibition to nulli%y t+e cease and desist o"de"s o% t+e t"ial cou"t- C' issued a &RO a*ainst t+e R&C o"de"- Vlason "ecei ed %"o. a notice to ,ay Du"a,"oo% P5 .illion- (ot +a in* any 6no!led*e o% t+e C' case to !+ic+ it !as not i.,leaded, Vlason %iled !it+ t+e R&C a )otion to Dis.iss&+e s+e"i%% le ied Vlason Ente","ises ,"o,e"ties, so t+e latte" %iled a s,ecial a,,ea"ance be%o"e t+e C', ,"ayin* %o" t+e li%tin* o% t+e le y on its ,"o,e"ties o", alte"nati ely, %o" a te.,o"a"y "est"ainin* o"de" a*ainst t+ei" auction until its )otion %o" Reconside"ation !as "esol ed by t+e t"ial cou"tR&C "e e"sed its Decision, %indin* t+at t+e"e ne e" !as issued an o"de" o% de%ault a*ainst Vlason Ente","ises, so t+e"e could not +a e been any alid de%ault7 3ud*.ent "ende"ed a*ainst it&+e C' allo!ed Du"a,"oo% to i.,lead Vlason in t+e C' case- &+e"ea%te", t+e C' "ende"ed t+e assailed Decision, statin* t+at t+e decision o% t+e R&C +ad beco.e %inal and e8ecuto"y, ne e" +a in* been dis,uted o" a,,ealed to a +i*+e" cou"t, and t+at t+e lo!e" cou"t .ay no! ta6e a,,"o,"iate action on t+e u"*ent e87,a"te .otion %o" issuance o% a !"it o% e8ecution- &+e C' cla"i%ied t+at t+e"e !as no need to se" e su..ons ane! on Vlason Ente","ises, since it +ad been se" ed su..ons !+en t+e second a.ended ,etition !as %iled9 and t+at Vlason Ente","isess )otion %o" Reconside"ation !as de%ecti e and oid, because it contained no notice o% +ea"in* add"essed to t+e counsel o% Du"a,"oo% in iolation o% Rule 1=, Section : o% t+e Rules o% Cou"t-

Vlason Ente","ises %iled /10 a )otion %o" Cla"i%ication, ,"ayin* %o" a decla"ation t+at t+e t"ial cou"t Decision a*ainst it !as not alid9 and /40 a ,a"tial )otion %o" Reconside"ation, see6in* to set aside t+e assailed Decision inso%a" as t+e latte" a%%ected it&+e R&C issued a W"it o% Possession by i"tue o% !+ic+ Du"a,"oo% too6 ,ossession o% Vlasons ba"*e LawinBence, t+is PetitionISSUE2 .hether the !4C default /udgment was binding on @lason NO2 Vlason !as ne e" decla"ed in de%ault- &+e t"ial cou"t denied )otion o% Du"a,"oo% to decla"e all t+e de%endants in de%ault, but it ne e" acted on t+e latte"s subse?uent )otion to decla"e Vlason Ente","ises li6e!ise-&+e R&C decla"ed in de%ault only 'tty- Eddie &a.ondon*, as !ell as t+e ot+e" de%endants Bon- Sal ado" )ison, MJ@ $tar Ace, O.e*a Sea &"ans,o"t Co-, Inc- o% Pana.a and Sin6on* &"adin* Co-, but des,ite due notice to t+e., t+ey %ailed to a,,ea"- E en Du"a,"oo% cannot ,in,oint !+ic+ t"ial cou"t o"de" +eld ,etitione" in de%ault)o"e i.,o"tant, t+e t"ial cou"t ad.itted t+at it ne e" decla"ed ,etitione" in de%ault- &+e"e could not +a e been any alid de%ault73ud*.ent "ende"ed a*ainst it- &+e issuance o% an o"de" o% de%ault is a condition sine ?ua non in o"de" t+at a 3ud*.ent by de%ault be clot+ed !it+ alidityCu"t+e".o"e, it is a le*al i.,ossibility to decla"e a ,a"ty7de%endant to be in de%ault be%o"e it !as alidly se" ed su..onsOrder !f defau t W+en s!me answer and !t+ers defau t E3tent !f re ief t! be awarded W+ere n!t a !wed Pr!cedure after !rder !f defau t )render 4ud$ment )+earin$ e3 #arte Remed. fr!m !rder !f defau t -!ti!n t! set aside RAMNANI v. CA (!!( SCRA 5)! (%%&" ' satis%acto"y s+o!in* by t+e .o ant o% t+e e8istence o% %"aud, accident, .ista6e o" e8cusable ne*lect is an indis,ensable "e?ui"e.ent %o" t+e settin* aside o% a 3ud*.ent o% de%ault o" o"de" o% de%aultC'C&S2 &+e DiHons %iled a case %o" a su. o% .oney a*ainst t+e Ra.nanis %ailu"e to "e.it t+e alue o% 3e!el"y t+at t+e latte" "ecei ed %"o. t+e %o".e" on a consi*n.ent basisJose,+ine Ra.nani sub.itted an ans!e" !it+ counte"clai. statin* t+e %act t+at it !as t+e DiHons !+o o!ed t+e. .oneyP"e7&"ial !as set but t+e Ra.nanis did not s+o! u, +ence t+ey !e"e decla"ed in de%ault- &+e cou"t late" "ecei ed t+e e idence o% t+e DiHons e8 ,a"te due to t+e

)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWERF1

Ra.nanis status o% de%ault- Lo!e" cou"t "uled in %a o" o% t+e DiHonsRa.nanis stated a .e"ito"ious de%ense as an e8cuse to set aside t+ei" o"de" o% de%ault- &+ey stated t+at t+e obli*ation !as ente"ed into by )"s DiHon !it+out )"DiHons consent e"*o oid- It !as, +o!e e", denied' Petition %o" Ce"tio"a"i !as %iled !it+ t+e C' i.,utin* e""o" des,ite t+ei" .e"ito"ious de%ense- Denied since t+e C' "uled t+at ce"tio"a"i is a "e.edy only %o" e""o"s o% 3u"isdiction, not e""o"s in 3ud*e.entISSUE2 .hether the order of default against the %etitioners should be set aside NO2 Re.edies %o" a ,a"ty +eld in de%ault2 1-0 'nyti.e a%te" disco e"y t+e"eo% S be%o"e 3ud*e.ent2 C')E Z.e"ito"ious de%ense 4-0 I% 3ud*.ent al"eady "ende"ed u,on disco e"y but be%o"e it beco.es %inal and e8ecuto"y2 .otion %o" ne! t"ial5-0 '%te" it beco.es %inal and e8ecuto"y2 ,etition %o" "elie% unde" Section 4 o% "ule F :-0 ',,eal %"o. 3ud*.ent as cont"a"y to t+e e idence o" to t+e la!In t+e case at ba", t+e ,etitione" %ailed to ,"o e t+at t+ey !e"e unable to attend t+e ,"e7t"ial +ea"in* due to C')E-

,"edecesso"s7in7inte"est +ad been %o" o e" 1DD yea"s in ,ossession c+a"acte"iHed as continuous, o,en, ,ublic, and in t+e conce,t o% an o!ne"- &+e R&C t+us dec"eed t+e "e*ist"ation o% t+e t+"ee /50 lots in t+e na.e o% )a"tineHC"o. t+is Decision, t+e OSE %iled a (otice o% ',,eal, !+ic+ !as a,,"o ed by t+e R&C- Bo!e e", a%te" t+e "eco"ds +ad been t"ans.itted to t+e C', t+e R&C "ecei ed a lette" %"o. t+e LR' statin* t+at only t!o o% t+e lots sou*+t to be "e*iste"ed !e"e "e%e""ed to in t+e (otice o% Bea"in* ,ublis+ed in t+e O%%icial EaHette, and t+at t+e t+i"d lot !as o.itted due to t+e lac6 o% an a,,"o ed su" ey ,lan %o" t+at ,"o,e"ty- LR' .ani%ested t+at t+is lot s+ould not +a e been ad3udicated to )a"tineH %o" lac6 o% 3u"isdiction- &+is lette" !as "e%e""ed by t+e R&C to t+e Cou"t o% ',,eals %o" a,,"o,"iate action&+e C' "e e"sed t+e R&C and o"de"ed t+e dis.issal o% t+e ,etition %o" "e*ist"ation- It %ound t+e e idence ,"esented by )a"tineH as insu%%icient to su,,o"t t+e "e*ist"ation o% t+e sub3ect lots)a"tineH di"ectly assailed t+e C' decision be%o"e t+e SC, clai.in* t+at t+e OSE no lon*e" +ad ,e"sonality to o,,ose t+e ,etition, o" a,,eal its allo!ance by t+e R&C, %ollo!in* t+e o"de" o% *ene"al de%aultISSUE2 .hether an order of general default bars the !e%ublic from inter%osing an a%%eal from the trial courtBs subse3uent decision NO2 We +old t+at a de%endant ,a"ty decla"ed in de%ault "etains t+e "i*+t to a,,eal %"o. t+e 3ud*.ent by de%ault on t+e *"ound t+at t+e ,lainti%% %ailed to ,"o e t+e .ate"ial alle*ations o% t+e co.,laint, o" t+at t+e decision is cont"a"y to la!, e en !it+out need o% t+e ,"io" %ilin* o% a .otion to set aside t+e o"de" o% de%aultBy 1##$, t+e doct"inal "ule conce"nin* t+e "e.edies o% a ,a"ty decla"ed in de%ault +ad e ol ed into a %ai"ly co.,"e+ensi e "estate.ent as o%%e"ed in Lina v# Court of A%%eals2 a0 &+e de%endant in de%ault .ay, at any ti.e a%te" disco e"y t+e"eo% and be%o"e 3ud*.ent, %ile a .otion, unde" oat+, to set aside t+e o"de" o% de%ault on t+e *"ound t+at +is %ailu"e to ans!e" !as due to %"aud, accident, .ista6e o" e8cusable ne*lect, and t+at +e +as .e"ito"ious de%enses9 /Sec 5, Rule 1F0 b0 I% t+e 3ud*.ent +as al"eady been "ende"ed !+en t+e de%endant disco e"ed t+e de%ault, but be%o"e t+e sa.e +as beco.e %inal and e8ecuto"y, +e .ay %ile a .otion %o" ne! t"ial unde" Section 1/a0 o% Rule 5$9 c0 I% t+e de%endant disco e"ed t+e de%ault a%te" t+e 3ud*.ent +as beco.e %inal and e8ecuto"y, +e .ay %ile a ,etition %o" "elie% unde" Section 4 o% Rule 5F9 and d0 Be .ay also a,,eal %"o. t+e 3ud*.ent "ende"ed a*ainst +i. as cont"a"y to t+e e idence o" to t+e la!, e en i% no ,etition to set aside t+e o"de" o% de%ault +as been ,"esented by +i.- /Sec4, Rule :10 &+e %ou"t+ "e.edy, t+at o% a,,eal, is anc+o"ed on Section 4, Rule :1 o% t+e 1#=: Rules- Tet e en a%te" t+at ,"o isions deletion unde" t+e 1##$ Rules, t+e Cou"t did not +esitate to e8,"essly "ely a*ain on t+e Lina doct"ine,

Remedies fr!m 4ud$ment b. defau t Bef!re fina . -!ti!n f!r rec!nsiderati!n !r new tria A##ea MARTINE/ v. RE#UBLIC (!006" ' de%endant ,a"ty decla"ed in de%ault "etains t+e "i*+t to a,,eal %"o. t+e 3ud*.ent by de%ault on t+e *"ound t+at t+e ,lainti%% %ailed to ,"o e t+e .ate"ial alle*ations o% t+e co.,laint, o" t+at t+e decision is cont"a"y to la!, e en !it+out need o% t+e ,"io" %ilin* o% a .otion to set aside t+e o"de" o% de%aultC'C&S2 Jose R- )a"tineH %iled a ,etition %o" t+e "e*ist"ation in +is na.e o% t+"ee /50 ,a"cels o% land +e alle*edly ,u"c+ased %"o. +is uncle- Be clai.ed continuous ,ossession o% t+e lots9 t+at t+e lots +ad "e.ained unencu.be"ed9 and t+at t+ey beca.e ,"i ate ,"o,e"ty t+"ou*+ ,"esc"i,tion ,u"suant to Section :F/b0 o% C' (o1:1&+e OSE !as %u"nis+ed a co,y o% t+e ,etition&+e t"ial cou"t set t+e case %o" +ea"in* and di"ected t+e ,ublication o% t+e co""es,ondin* (otice o% Bea"in* in t+e O%%icial EaHette- &+e OSE, in be+al% o% t+e Re,ublic o% t+e P+ili,,ines, o,,osed t+e ,etitionDes,ite t+e o,,osition %iled by t+e OSE, t+e R&C issued an o"de" o% *ene"al de%ault, e en a*ainst t+e Re,ublic o% t+e P+ili,,ines- &+is ensued !+en du"in* t+e +ea"in* o% e en date, no ,a"ty a,,ea"ed be%o"e t+e Cou"t to o,,ose )a"tineHs ,etitionR&C "ecei ed )a"tineHs o"al and docu.enta"y e idence and concluded t+at )a"tineH and +is
)E(DE@, IV'( VIA&OR /4D, 150

CIVIL PROCEDURE REVIEWERF4

includin* t+e ,"onounce.ent t+at a de%aulted de%endant .ay a,,eal %"o. t+e 3ud*.ent "ende"ed a*ainst +i.Tet e en i% it !e"e to assu.e t+e doubt%ul ,"o,osition t+at t+is contested "i*+t o% a,,eal %inds no anc+o" in t+e 1##$ Rules, t+e doct"ine still e8ists, a,,lyin* t+e ,"inci,le o% stare decisis- Ju"is,"udence a,,lyin* t+e 1##$ Rules +as continued to ac6no!led*e t+e Lina doct"ine !+ic+ e.bodies t+is "i*+t to a,,eal as a.on* t+e "e.edies o% a de%endant, and no a"*u.ent in t+is ,etition ,e"suades t+e Cou"t to "ule ot+e"!ise(O&E2 &+e R&C a,,ea"s to +a e issued t+e o"de" o% *ene"al de%ault si.,ly on t+e ,"e.ise t+at no o,,osito" a,,ea"ed be%o"e it on t+e +ea"in*- But it cannot be denied t+at t+e OSE +ad al"eady duly %iled its O,,osition to )a"tineHs ,etition lon* be%o"e t+e said +ea"in*- It !as i.,"o,e" to decla"e t+e o,,osito" in de%ault si.,ly because +e %ailed to a,,ea" on t+e day set %o" t+e initial +ealin*St"an*ely, t+e OSE did not c+allen*e t+e ,"o,"iety o% t+e de%ault o"de"- It !ould t+us be i.,"o,e" %o" t+e Cou"t to .a6e a ,"onounce.ent on t+e alidity o% t+e de%ault o"de" since t+e sa.e +as not been ,ut into issue-

t+us, a,,ealable- Since a,,eal is t+e ,"o,e" "e.edy, t+e e8t"ao"dina"y !"it o% ce"tio"a"i !ill not liePetitione" contends t+at it could not be bound by t+e ?uestioned O"de" o% ',"il 1:, 1#F# decla"in* it in de%ault and t+e subse?uent Decision o% )ay 4D, 1#F# because it did not "ecei e co,ies t+e"eo%- Res,ondents counte" t+at suc+ non7se" ice !as due to ,etitione"Ms %ault in not %u"nis+in* t+e t"ial cou"t !it+ its Q%o"!a"din* add"essQ a%te" its counsel !it+d"e! +is a,,ea"ance- &+is Cou"t is not in a ,osition to settle t+is issue o% %act 1 as indeed t+e Su,"e.e Cou"t does not decide suc+ ?uestionsBut it is not dis,uted t+at a%te" "ecei,t o% t+e decision, ,etitione" %iled a .otion %o" "econside"ation&+us, !+ate e" de%ects 1 i% indeed t+e"e !as any 1 .ay +a e been co..itted by t+e t"ial cou"t in %ailin* to *i e const"ucti e notice o% its e""oneous de%ault o"de" !as cu"ed by ,etitione"Ms olunta"y %ilin* o% t+e said .otion %o" "econside"ation- U,on denial t+e"eo%, ,etitione" s+ould +a e a,,ealed- But instead o% doin* t+at, it o,ted %o" t+e !"on* "e.edy o% ce"tio"

INDIANA AEROS#ACE UNI*ERSIT. v. CHED (&56 SCRA &6' !00(" After fina it. Petiti!n f!r re ief fr!m 4ud$ment Annu ment !f 4ud$ment Is ;e894<8784 a #r!#er remed./ -AO v. CA (!5( SCRA &%( (%%5" &+e ,"o,e" "e.edy o% a ,a"ty !"on*ly decla"ed in de%ault is eit+e" to a,,eal %"o. t+e 3ud*.ent by de%ault o" to %ile a ,etition %o" "elie% %"o. 3ud*.ent, and not ce"tio"a"iC'C&S2 Due to t+e non7a,,ea"ance o% t+e ,etitione" Jao S Co.,any, Inc-, du"in* t+e +ea"in* on t+e .e"its, t+e Re*ional &"ial Cou"t o% )anila, B"anc+ >1 1 u,on .otion o% +e"ein ,"i ate "es,ondent &o, Se" ice, Inc- 1 issued an o"de" dated ',"il 1:, 1#F# decla"in* said ,etitione" in de%ault and allo!ed e idence to be ,"esented e87,a"te- &+e ,etitione" +o!e e" %iled an ans!e"- On )ay 4=, 1#F#, t+e t"ial cou"t "ende"ed a decision o"de"in* Jao to ,ay &o, Se" ice t+e a*"eed "entals !it+ 14L inte"est- ' !"it o% ,"eli.ina"y in3unction !as issued by t+e R&C- By i"tue o% suc+ decision, &o, Se" ice stated t+at Jaos counsel +ad !it+d"a!n +is a,,ea"ance in t+e t"ial cou"t and le%t no %o"!a"din* add"ess- (o notice o% t+e said o"de" o% de%ault and t+e decision could be *i en it- &+e %o".e" contends t+at t+e latte"s "e.edy !as ti.ely a,,eal, !+ic+ t+e latte" %ailed to ,e"%ectISSUE2 .hether the decision of the trial court, %romulgated on May >&, :DED, became final 6ES2 Under !rdinar. circumstances" t+e #r!#er remed. !f a #art. wr!n$ . dec ared in defau t is eit+er t! a##ea fr!m t+e 4ud$ment b. defau t !r t! fi e a #etiti!n f!r re ief fr!m 4ud$ment" and n!t certi!rari2 ' de%ault 3ud*.ent is an ad3udication on t+e .e"its and is,
)E(DE@, IV'( VIA&OR /4D, 150

&+e "e.edies a ailable to a de%endant V'LIDLT decla"ed in de%ault a"e as %ollo!s2 /10 a .otion to set aside t+e o"de" o% de%ault unde" Section 5/b0, Rule # o% t+e Rules o% Cou"t, i% t+e de%ault !as disco e"ed be%o"e 3ud*.ent could be "ende"ed9 /40 a .otion %o" ne! t"ial unde" Section 1/a0 o% Rule 5$, i% t+e de%ault !as disco e"ed a%te" 3ud*.ent but !+ile a,,eal is still a ailable9 /50 a ,etition %o" "elie% unde" Rule 5F, i% 3ud*.ent +as beco.e %inal and e8ecuto"y9 and /:0 an a,,eal %"o. t+e 3ud*.ent unde" Section 1, Rule :1, e en i% no ,etition to set aside t+e o"de" o% de%ault +as been "eso"ted toC'C&S2 In 1##=, t+e C+ai".an o% t+e &ec+nical Panel %o" En*inee"in*, '"c+itectu"e, and )a"iti.e Education /&PR')0 o% CBED, "ecei ed a lette" %"o. Dou*las )acias OC+ai".an o% t+e Boa"d o% 'e"onautical En*inee"in*, PRC in?ui"in* !+et+e" ,etitione" Indiana 'e"os,ace Uni e"sity +ad al"eady ac?ui"ed uni e"sity status in ie! o% t+ei" "e,"esentation in t+e ad e"tise.ent in t+e )anila Bulletin'%te" in esti*ation, it !as %ound t+at t+e"e !as a iolation co..itted by t+e I'U !+en it used t+e te". Guni e"sityK !+en it +ad not yet co.,lied !it+ t+e basic "e?ui"e.ent o% bein* a uni e"sity as ,"esc"ibed in CBED )e.o"adu.- Res,ondent CBED in?ui"ed %"o. t+e SEC as to t+e status o% t+e "e*iste"ed na.e o% ,etitione" and it !as a%%i".ed t+at I'U /"e*iste"ed as Indiana Sc+ool o% 'e"onautics, Inc-0 +ad not a.ended its '"ticles o% Inco",o"ation to c+an*e its na.e to a Guni e"sity-K CBED o"de"ed I'U to desist %"o. usin* t+e !o"d Guni e"sity-K I'U t+"ou*+ its c+ai".an and %ounde" a,,ealed to t+e O"de" o% CBED a e""in* t+at t+e sc+ool !ill encounte" di%%iculties and su%%e" da.a*es i% it !ill not be allo!ed to use t+e !o"d Guni e"sityK in its sc+ool na.e-

CIVIL PROCEDURE REVIEWERF5

P"io" to t+e cou"t decision *"antin* t+e Cease and Desist O"de" %iled by CBED, ,etitione" I'U %iled Co.,laint %o" Da.a*es be%o"e t+e Cou"t- Res,ondent CBED t+en %iled a S,ecial ',,ea"ance !it+ )otion to Dis.iss t+e Co.,laint %o" da.a*es- Petitione" I'U %iled O,,osition to t+e )otion to Dis.iss- &+e &C Jud*e denied "es,ondent CBEDs .otion to dis.iss and issued a !"it o% ,"eli.ina"y in3unction in %a o" o% I'U&+e &C Jud*e also di"ected CBED to %ile its 'ns!e" to t+e decision !it+in 1> days %"o. t+e "ecei,t o% t+e Cou"t O"de" O !+ic+ !as 'u*ust 1>, 1##F- On Se,te.be" 44, 1##F, ,etitione" I'U %iled )otion to Decla"e Res,ondent in De%ault ,u"suant to Section #, Section 5 o% RROC- On t+e sa.e day, "es,ondent CBED %iled %o" )otion %o" E8tension o% &i.e to Cile its 'ns!e" until (o e.be" 1F, 1##F, but CBED sub.itted its 'ns!e" +o!e e" on (o e.be" 1$, 1##F- On (o e.be" 11, ,etitione" I'U %iled its O,,osition to t+e )otion %o" E8tension o% &i.e to Cile "es,ondents 'ns!e"- &"ial Jud*e "ende"ed its Decision and *"anted ,etitione"s .otion to decla"e "es,ondent CBED in De%aultRes,ondent CBED conse?uently %iled !it+ t+e C' a ,etition %o" ce"tio"a"i a"*uin* t+at t+e R&C +ad co..itted *"a e abuse o% disc"etion in decla"in* "es,ondent CBED in de%ault des,ite its Cilin* o% an 'ns!e"&+e C' "uled t+at "es,ondent CBED s+ould (O& +a e been decla"ed in de%ault, because its ans!e" +ad been %iled lon* be%o"e t+e R&C "uled u,on ,etitione"s )otion to decla"e "es,ondent in de%ault- &+us, "es,ondent +ad not obstinately "e%used to %ile an 'ns!e"9 on t+e cont"a"y, its %ailu"e to do so on ti.e !as due to e8cusable ne*li*ence- /an e8,"ess e8ce,tion to bein* decla"ed in de%ault unde" Rule #, Sec&ion 50&+us, I'U instituted case at ba" to a,,eal t+e C' decisionISSUE2 .hether res%ondent CF+D should be declared in default des%ite its filing of an answer, and whether its failure to file answer on time be e,cused on ground that it was due to e,cusable negligence NO2 &+e SC a*"eed !it+ "es,ondent CBED t+at ce"tio"a"i !as t+e only ,lain, s,eedy and ade?uate "e.edy in t+e o"dina"y cou"se o% la!, because t+e de%ault O"de" +ad i.,"o idently been issued&+e "e.edies a ailable to a de%endant decla"ed in de%ault a"e as %ollo!s2 /10 a .otion to set aside t+e o"de" o% de%ault unde" Section 5/b0, Rule # o% t+e Rules o% Cou"t, i% t+e de%ault !as disco e"ed be%o"e 3ud*.ent could be "ende"ed9 /40 a .otion %o" ne! t"ial unde" Section 1/a0 o% Rule 5$, i% t+e de%ault !as disco e"ed a%te" 3ud*.ent but !+ile a,,eal is still a ailable9 /50 a ,etition %o" "elie% unde" Rule 5F, i% 3ud*.ent +as beco.e %inal and e8ecuto"y9 and /:0 an a,,eal %"o. t+e 3ud*.ent unde" Section 1, Rule :1, e en i% no ,etition to set aside t+e o"de" o% de%ault +as been "eso"ted to&+ese "e.edies, +o!e e", a"e a ailable only to a de%endant !+o +as been alidly decla"ed in de%ault- Suc+ de%endant i""e,a"ably loses t+e "i*+t to ,a"tici,ate in t+e t"ial- On t+e ot+e" +and, a de%endant i.,"o idently decla"ed in de%ault .ay "etain and e8e"cise suc+ "i*+t a%te" t+e o"de" o% de%ault and t+e subse?uent 3ud*.ent by de%ault a"e annulled, and t+e case "e.anded to t+e cou"t o% o"i*in)E(DE@, IV'( VIA&OR /4D, 150

&+e %o".e" is li.ited to t+e "e.edy set %o"t+ in section 4, ,a"a*"a,+ 5 o% Rule :1 o% t+e ,"e 1##$ Rules o% Cou"t, and can t+e"e%o"e contest only t+e 3ud*.ent by de%ault on t+e desi*nated *"ound t+at it is cont"a"y to e idence o" la!&+e latte", +o!e e", +as t+e %ollo!in* o,tions2 to "eso"t to t+is sa.e "e.edy9 to inte",ose a ,etition %o" ce"tio"a"i see6in* t+e nulli%ication o% t+e o"de" o% de%ault, e en be%o"e t+e ,"o.ul*ation o% a 3ud*.ent by de%ault9 o" in t+e e ent t+at 3ud*.ent +as been "ende"ed, to +a e suc+ o"de" and 3ud*.ent decla"ed oidIn #r!+ibitin$ a##ea s fr!m inter !cut!r. !rders" t+e aw d!es n!t intend t! acc!rd e3ecut!r. f!rce t! suc+ writs" #articu ar . w+en t+e effect w!u d be t! cause irre#arab e dama$e2 If in t+e c!urse !f tria " a 4ud$e #r!ceeds wit+!ut !r in e3cess !f 4urisdicti!n" t+is ru e #r!+ibitin$ an a##ea d!es n!t eave t+e a$$rieved #art. wit+!ut an. remed.2 In a case i*e t+is" a s#ecia civi acti!n !f certi!rari is t+e # ain" s#eed. and adeCuate remed.2 &as suc+ as w+at C=ED +ad d!ne(2 =erein res#!ndent C=ED c!ntr!verts t+e 4ud$ment b. defau t" n!t !n t+e $r!und t+at it is unsubstantiated b. evidence !r t+at it is c!ntrar. t! aw" but !n t+e $r!und t+at it is intrinsica . v!id f!r +avin$ been rendered #ursuant t! a #atent . inva id !rder !f defau t2