CIVIL PROCEDURE

RULE 3 - PARTIES TO CIVIL ACTIONS

WHO MAY BE PARTIES TO A CIVIL ACTION

Only natural or juridical persons or entitles authorized by law may be parties in a civil action. 1
They are called: PLAINTIFF he is one who has interest in the subject of the action and
obtaining the relied demanded. He may be the claimant in the original complaint, the counter-
claimant in the counter claim, or cross-claimant in a cross-claim or the third party plaintiff and
the DEFENDANT he is one who has an interest in the controversy adverse to the plaintiff. He
may be the original defending party, the defendant in a counter-claim, or cross-defendant in a
cross-claim.

For ready reference, a COUNTER-CLAIM is any claim which a defending party may have
against an opposing party.2A CROSS-CLAIM is a claim by one party against a co-party arising
out of the transaction or occurrence that is the subject matter either of the original action or of a
counter-claim therein.3A THIRD PARTY CLAIM is a claim that a defending party may, with
leave of court, file against a person not party to an action for contribution, indemnity,
subrogation or any other relief, in respect to his opponents claim.4

1.The state or any of its political subdivisions, while considered as juridical entities, they can sue
but as a general rule, they cannot be sued without its consent.

2. A foreign corporation cannot be a plaintiff in suit when it is transacting business in the

Philippines without a license.

3. Entities authorized by law are recognized labor organizations and entities without legal
personality referring to 2 or more persons not organized as an entity with juridical personality
enter into a transaction, they may be sued under the name by which they are generally or
commonly known but in their answer to the complaint, their names and addresses must be
revealed.5

4.A sole proprietorship may not be a party as it is neither a natural, juridical or entity allowed or
authorized by law. If one sues as such, the action may be dismissed on the ground of lack of
capacity to sue. It does not possess a juridical personality separate and distinct from the
personality of the owner of the enterprise.6It cannot sue or file or defend an action in court.7

PARTIES IN INTEREST

1 Supra,,Section 1, Rule 3
2 Supra, Section 6, Rule 6
3 Supra, Section 8, Rule 6
4 Supra, Section 11, Rule 6
5 Supra, Section 15, Rule 3
6 Mangila v Court of Appeals, 387 SCRA 162, Yao Ka Sin Trading v Court of Appeals, 209
SCRA 763
7 Juasing Hardware v Mendoza, 115 SCRA 783
A real party in interest in the party who stands to be benefited or injured by the judgment or party
entitled to the avails of the suit. UNLESS OTHERWISE AUTHORIZED BY LAW OR THE
RULES all actions must be prosecuted or defended in the name of the real party in interest.8

1.A real party in interest-plaintiff is one who has a legal right, while a real party in interest-
defendant is one who has a correlative obligation, whose act or omission violates the legal rights
of the former.9

2.WHEN A SUIT IS NOT BROUGHT IN THE NAME OF THE REAL PARTY IN

INTEREST,it may be dismissed on the ground that the complaint states no cause of action. 10
Note that the dismissal is not due to lack of or no legal capacity to sue nor lack of legal
personality, as the latter is not ground for dismissal for dismissal under the 1997 Rules of Civil
Procedure.

2.1It states NO CAUSE OF ACTION BECAUSE IT IS NOT BEING PROSECUTED IN THE

NAME OF THE REAL PARTY IN INTEREST.

2.2 LACK OF LEGAL CAPACITY TO SUE means that the plaintiff is not in exercise of his
civil rights, does not have the necessary qualification to appear or does not have the character or
representation he claims. Example: Trustee or Minor, AS DISTINGUISHED FROM LACK OF
LEGAL PERSONALITY means that the plaintiff is not the real party in interest. Dismissal is
based on the fact that the complaint states no cause of action

3. Legal standing means a personal and substantial interest in the case such that the party
has sustained or will sustain direct injury as a result of the act being challenged. The term interest
is material interest, an interest in issue, and to be affected by the decree, as distinguished from
mere interest in the question involved, or a mere incidental interest. Moreover, the interest must
be personal and not one based on a desire to vindicate the constitutional right of some third or
unrelated party.

CLASSIFICATION OF REAL PARTIES IN INTEREST

1. INDISPENSABLE PARTY is a party without whom no final determination can be had

of an action.11 They are those with such an interest in the controversy that a final decree would
necessarily affect their rights, so that the courts cannot proceed without their presence. Example:
owners of property over which reconveyance is asserted are indispensable parties without whom
no relief is available and without whom the court can render no valid judgment.12

1.1Without the presence of indispensable parties to the suit, the judgment of the court cannot
attain real finality.13

2. NECESSARY PARTY is a party who is not indispensable but who ought to be joined as a
party if complete relief is to be accorded as to those already parties or for a complete
determination or settlement of the claim subject of the action. 14 A necessary partys presence is
necessary to adjudicate the whole controversy but whose interests are so far separable that a final

8 Supra, Section 2, Rule 3

9 Gan Hock v. Court of Appeals, 197 SCRA 223
10 Tankiko v Cesar, 302 SCRA 559
11 Supra, Section 7, Rule 3
12 Valenzuela v Court of Appeals, 363 SCRA 779
13 Domingo v Scheer, 421 SCRA 468
decree can be made in their absence without affecting them. Example: If the plaintiff only sues a
one of his joint debtors, the joint debtor who is not sued is merely a necessary party. As a
consequence, the plaintiff only recovers the share of the debt due from the joint debtor defendant.

2.2A necessary party is to be impleaded as a party for complete determination of an action, while
an indispensable party is impleaded for a final determination of an action.

PERSONS WHO CAN SUE IN BEHALF OF A REAL PARTY IN INTEREST

The following may sue in behalf of a real party in interest

1. REPRESENTATIVES- actions are allowed to be prosecuted / defended by a

representative or by one acting in a fiduciary capacity BUT the BENEFICIARY SHALL BE
INCLUDED IN THE TITLE and shall be deemed to be the REAL PARTY IN INTEREST.15

1.1Examples of representatives are: (1) trustee of an express trust (2) a guardian, executor or
administrator, or (3) a party authorized by law or the Rules.

1.2 An agent acting in his own name and for the benefit of an unknown principal may sue or
be sued without joining the principal except when the contract involves things belonging to the
principal. This refers to an AGENCY WITH AN UNDISCLOSED PRINCIPAL.16

2.HUSBAND AND WIFE- as a general rule shall sue or be sued jointly, except as provided by
law.17 Non joinder of partys husband is not fatal. It is a mere formal defect.18

2.1They are required to sue and be sued jointly as they are joint administrators of the Absolute
Community or the Conjugal Partnership.19

2.2The exceptions provided by law are when the property relations of husband and wife are
governed by the rules on separation of property20 or one is disposing of exclusive property.21

2.3NOTE that the legal provision against the disposition of conjugal property by one spouse
without the consent of the other has been established for the benefit, not of third persons, but
only for the spouse for whom the law desires to save the conjugal partnership from damages that
might be caused. No other party can avail of the remedy other than the aggrieved spouse.22

3.MINORS OR INCOMPETENTS- may sue or be sued with the assistance of father, mother,
guardian or, if he has none, a guardian ad litem.23

14 Supra, Section 8, Rule 3

15 Supra, Section 3, Rule 3
16 Article 1883, NCC
17 Supra, Section 4, Rule 3
18 Miranda v Besa, 435 SCRA 532
19 Articles 96 and 124, Family Code
20 Article 145, Family Code
21 Article 111, Family Code
22 Villaranda v Villaranda, 423 SCRA 571
23 Supra, Section 5, Rule 3
3.1A guardian ad litem is a special guardian appointed by the court in which a particular
litigation is pending to represent or assist a minor or an incompetent person involved in or has
interest in the property subject of litigation. His status as such exists only in that particular
litigation in which the appointment occurs.

3.2 Note that the appointment of a guardian ad litem may occur in the following: for minor
heirs when substituting for a deceased party24, incompetency or incapacity of a party25, service of
summons on a minor or incompetent26, and when the best interest of the child require it.27

JOINDER OF PARTIES

Joinder of Parties refers to the act of uniting several parties in a single suit either as plaintiffs or
defendants.

1.The rule on joinder of parties states that: All persons in whom or against whom any right to
relief in respect to or arising out of the same transaction is alleged to exist, whether jointly,
severally or in the alternative, may except as otherwise provided in these rules, join as plaintiffs
or be joined as defendants in one complaint, where any question of law or fact common to all
such plaintiffs or to all such defendants may arise in the action.28

2.Joinder of Parties, as a rule, is permissive when there is a question of law or fact common to all
the plaintiffs or defendants. This means that the right to relief or to resist the action arises out of
the same transaction or event or series of transactions or events. Example: action by passengers
of a common carrier for injuries sustained in an accident, there is no community of interest, the
extent of the interest is limited to the extent of damages being claimed by each.

3. It becomes compulsory when the parties to be joined are indispensable parties.29

4.The exception to compulsory joinder of parties is when the subject of the action is proper for a
class suit. The subject matter of the controversy is proper for a class suit when it is one of
common or general interest to many persons so numerous that it is impractical to join all as
parties.30 All the parties who are interested in the action as plaintiffs or defendants are all
indispensable parties but not all need to be joined.

4.1The requisites of a class suit are:

1. The subject matter of the controversy is one of common or general interest to many
persons. There must be an INDIVISIBLE RIGHT AFFECTING MANY INDIVIDUALS
WHOSE PARTICULAR INTEREST IS OF INDETERMINATE EXTENT AND IS
INCAPABLE OF SEPARATION. This requires that the benefit to one is a benefit to all.
Examples: stockholder derivative suits and taxpayer suits.

24 Supra, Section 16, Rule 3

25 Supra, Section 18, Rule 3
26 Supra, Section 10, Rule 14
27 Article 222, Family Code
28 Supra, Section 6, Rule 3
29 Supra, Section 7, Rule 3
30 Supra, Section 12, Rule 3
1.1 Improper for a class suit is when a claimant is interested only in collecting his claims and
has no concern in protecting the interests of the others.31
2.The parties affected are so numerous that it is impracticable to join all as parties
3. The parties bringing or defending the class suit are found by the court to be sufficiently
numerous and representative as to fully protect the interest of all.
To comply with the 2nd and 3rd requisite, the Complaint most allege: (1) existence of a subject
matter which is of common or general interest to many persons, and (2) existence of a class and
the number of persons belonging to that class

4.2 It can be brought by the plaintiffs as a class or may be filed against the defendants as a
class

4.3 Any party in interest shall have the right to intervene to protect his individual interest.

4.4 The general rule, is that the party bringing the suit in his own name and that of others
similarly situated has the right to control the suit, BUT, it shall not be dismissed or compromised
without the approval of the court.32

5.If there is a failure to join an indispensable party, the court must order the plaintiff to amend his
complaint for the purpose of impleading the indispensable party. If the plaintiff fails, refuses or
the party cannot be sued because he is a non-resident defendant in a personal action, the
complaint must be dismissed.33

6.If there is a failure to join a necessary party, the pleader in the pleading in which a claim is
asserted without joining a necessary party shall (1) set forth the name of the necessary party, if
known and (2) state the reason for omission. If the court finds the reason for the omission is not
meritorious, it may order the inclusion of the omitted necessary party if jurisdiction over his
person is obtained.
If pleader fails to comply with order for inclusion without justifiable cause, it shall be deemed a
waiver of the claim against the party, BUT the non-inclusion does not prevent the court from
proceeding in the action, and the judgment therein shall be without prejudice to rights of such
necessary party.34

7.MISJOINDER OR NON JOINDER NOT A GROUND FOR DISMISSAL.Parties may be

dropped or added by order of the court on motion of any party or on its own initiative at any
stage of the action and on such terms that are just. Any claim against a misjoined party may be
severed and proceeded against separately.35

NOTE HOWEVER that if the party to be joined is indispensable and the plaintiff fails or
refuses or such party cannot be sued the complaint must be dismissed (NDC v. CA 211 S 422)

8.IF A PARTY TO BE JOINED AS A PLAINTIFF DOES NOT CONSENT OR CANNOT BE

OBTAINED he may be made a defendant and the reason therefor shall be stated in the
complaint.36

31 Cadalin v POEA Administrator, 238 SCRA 721

32 Supra, Section 2, Rule 17
33 NDC v Court of Appeals, 211 SCRA 422
34 Supra, Section 9, Rule 3
35 Supra, Section 11, Rule 3
36 Supra, Section 10, Rule 3
 DISTINCTIONS BETWEEN

Indispensable party Necessary party

if not joined action cannot proceed if not joinedaction proceeds judgment

judgment is not valid is voted but does not resolve the controversy.
non joinder dismissed non joinder waiver of claim

WHO WILL PLAINTIFF SUE IF HE IS UNCERTAIN

If he (plaintiff) uncertain against who of several persons he is entitled to relief HE MAY
JOIN ANY OR ALL OF THEM AS DEFENDANTS in the ALTERNATIVE although a right
to relief against one may be inconsistent with a right of relief against the other.37

EXAMPLE: An action where the owner of goods is not sure whether they were lost in transit or
while it was on deposit in the warehouse of the arrastre operator He may sue the shipper or the
operator of the warehouse in the ALTERNATIVE although the right against the SHIPPER is
based on ADMIRALITY, while that against the OPERATOR is based on CONTRACT. Action
for damages arising from loss of goods due to a collision.

IF THE IDENTITY/NAME OF THE DEFENDANT IS UNKNOWN

He may be sued as the unknown owner, heir, devisee or by such other designation as the case
may require WHEN THE IDENTITY OR NAME IS DISCOVERED the pleading must be
amended accordingly.38 EXAMPLE: Action to recover real property from several unknown heirs
of a common ancestor.

EFFECT OF DEATH OF A PARTY (Sec 16)

When a party dies and his claim is not extinguished it shall be the duty of counsel to inform
the court within 30 days after such death of the : (1) FACT OF DEATH (2) NAME AND
ADDRESS OF LEGAL REP/REPS
IF NOT, Counsel may be subject to disciplinary action.
ONCE NOTICE IS GIVEN The COURT SHALL ORDER THE LEGAL REP/S TO APPEAR
AND BE SUBSTITUTED WITHIN 30 DAYS FROM NOTICE.
Note: Heirs may be allowed to be substituted for the deceased without requiring the appointment
of an executor or administrator and the court can appoint a guardian ad litem for minor heirs.

IF LEGAL REP/S DO NOT APPEAR OR NOTICE IS NOT GIVEN-

The court can order the opposing party, within a specified time to procure the appointment of
an executor or administrator to appear for and in behalf of the deceased Expenses if paid by
opposing party can be recovered as costs

IF DEATH/SEPARATION OF A PUBLIC OFFICER (Sec 17)

If sued in his public capacity and he dies, resigns or otherwise ceases to hold office
The action may be MAINTAINED AND CONTINUED by or against his successor, if within 30
days after successor assumes the office or such time as granted by the court it is
SATISFECTORILY SHOWN by a party that there is a substantial need for continuing and
maintaining it and that the successor ADOPTS or CONTINUES OR THREATENS to adopt or
continue the action of his predecessor.

BEFORE SUBSTITUTION IF NO EXPRESS ASSENT, the public officer shall be given

reasonable notice of the application and be accorded an opportunity to be heard.

EFFECT OF DEATH OF DEFENDANT ON A CONTRACTUAL MONEY CLAIM

37 Supra, Section 13, Rule 3

38 Supra, Section 14, Rule 3
If the action is for the recovery of money that arises from a CONTRACT, express or implied, and
the defendant dies BEFORE ENTRY OF A FINAL JUDGMENT, the RULE is it will not be
dismissed but shall be allowed to continue until entry of judgment, a favorable judgment
obtained shall be enforced in the manner provided by the rules for prosecuting claims against the
ESTATE OF A DECEASED PERSON.39

1.RULES TO BE OBSERVED IN CASE OF DEATH OF OBLIGOR are: (a) If he dies before

the action is filed, a money claim must be filed in the testate or intestate proceedings (b) if he
dies during the pendency of an action, the action continues until entry of judgment, and the
judgment claim is then filed with the testate or intestate proceedings. It must be noted that a
money claim judgment need not be proven because it is conclusive. NOTE FURTHER, that if
property has been levied upon before death. It can disposed of in the manner provided by the
rules on execution of judgments because it has already been segregated from estate. If there is a
deficiency, a money claim can be filed subsequently.

2. IF IT DOES NOT ARISE FROM CONTRACT, RE: CLAIMS FOR RECOVERY,

ENFORCEMENT OF A LIEN OR DAMAGES DUE TO TORT, the rules are: (a) if he dies
before the action is filed, it may be filed against the executor or administrator (b) if already filed ,
it continues to final judgment and may be executed on as against the executor or administrator.40

3.In a case for ejectment where the defendant died before the case could be decided and without
being able to testify on his counterclaim for damages. The trial court dismissed the ejectment suit
and ordered the plaintiff to pay the wife of the defendant moral damages and attorneys fees. The
plaintiff contends on appeal that the counterclaim should have been dismissed pursuant to Rule
3, Section 21 (old rule). HELD: The argument is misplaced, defendant was the plaintiff in his
counterclaim, the rule is not applicable as it pertains to a defendant who dies before final
judgment. In this case, it is the plaintiff who died and all that is required is a timely motion for
substitution. No recovery though can be allowed as no evidence was adduced.41
4.If a claim involves a conjugal debt that was not brought and one of the spouses die before
filing, the claim must be brought in the testate or intestate proceedings of the deceased spouse. 42 (
Alipio v. CA, GR. 134100, 9-29-2000)

5.IF IT IS THE PLAINTIFF WHO DIES: (a) if action is purely personal to him, the action is
abated (b) if action is not purely personal, it continues but counsel must give notice of death.

EFFECT ON INCOMPETENCY/INCAPACITY ON AN ACTION

1. The court, upon motion with notice, may allow the action to be continued by or against
the incompetent or incapacitated person assisted by his guardian or guardian ad litem.43

EFFECT OF A TRANSFER OF INTEREST PENDING LITIGATION

1.The action may be continued by or against the original party, unless the court upon motion
directs the person to whom interest is transferred to be substituted in the action or joined with the
original party.44

39 Supra, Section 20, Rule 3

40 Supra, Section 7, Rule 39
41 UST v Court of Appeals, GR No. 124250, October 18, 2004
42 Alipio v Court of Appeals, GR No. 134100, September 29, 2000
43 Supra, Section 3 and 18, Rule 3
44 Supra, Section 19, Rule 3
2.The rule refers to a transfer pendente lite. The transferee pendente lite shall stand exactly in the
shoes of the transferor. Consequently, any judgment will be binding upon him.

3. A transferee pendent elite does not have to be included or impleaded by name in order to
be bound by the judgment because the action or suit may be continued for or against the original
party or the transferor and still binding on the transferee.45

4.In a case on appeal where the transferee pendente lite did not appeal, he nevertheless was
benefited by the appeal of the transferor pendent elite.46

INDIGENT/PAUPER LITIGANT

1.An indigent or pauper litigant Is one who litigates on a claim that he has no money, or property
sufficient and available for food, shelter and basic necessities for himself and his family.47

2.An indigent or pauper litigant must file an ex-parte application for authority to litigate as an
indigent that is too be resolved by the court after hearing. Attached to the motion is an affidavit
attesting to the fact that he does not earn a gross income of PHP 4000.00 in Metro-Manila, or
PHP 3,000.00 elesewhere and has no real property with a fair market value of PHP 50,000.00.
Said affidavit must be supported by another affidavit of a disinterested person. Note that recently,
an indigent litigant has been defined as one (a) whose gross income and that of their immediate
family does not exceed an amount double the monthly minimum wage of an employee and (b)
who does not own real property with a fair market value as stated in the current tax declaration of
more than PHP 300,000.00. If there is any falsity in the affidavit or that of the disinterested
person, it shall constitute sufficient ground to dismiss the action or strike out the pleading,
without prejudice to whatever criminal liability is incurred.48

3.The effect of being allowed to litigate as an indigent or pauper litigant are: (1) exemption from
the payment of docket fees and other lawful fees (2) exemption from TSN fees which the Court
may order to be furnished BUT, the amounts due shall be a LIEN on a favorable judgment unless
the Court orders otherwise.

4. The allowance to litigate as an indigent or pauper litigant can be contested at any time
before judgment is rendered by any adverse party. If found to be meritorious, the proper fees are
assessed and are to be collected. IF NOT PAID, execution shall issue on the payment thereof
without prejudice to other sanctions.

5. On appeal, a motion to litigate as an indigent or pauper litigant is allowed.

WHEN SOLICITOR GENERAL IS REQUIRED TO APPEAR

In any action involving the validity of any treaty, law, ordinance, executive order, presidential
decree, rule or regulation, the court, in its discretion, may require the appearance of the
SOLGEN, who may be heard in person or through a representative duly designated by him.49

45 State Invetsment House, Inc. v Court of Appeals, 318 SCRA 47

46 Jocson v Court of Appeals, GR 88297, March 22, 1990
47 Supra, Section 21
48 Section 19, Rule 141, Rules of Court
49 Supra, Section 22, Rule 3