Professional Documents
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VOL. 523, JUNE 7, 2007 405: Duvaz Corporation vs. Export and Industry Bank
VOL. 523, JUNE 7, 2007 405: Duvaz Corporation vs. Export and Industry Bank
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G.R. No. 163011. June 7, 2007.
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* FIRST DIVISION.
406
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407
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408
GARCIA, J.:
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409
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410
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411
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We DENY.
With the recognition of the fact that the present petition
only involves the propriety of the RTC’s issuance of the
writ of preliminary injunction and not the merit of the
main action for reformation of instrument, the issues
presently raised by
413
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3 Lim v. Court of Appeals, G.R. No. 134617, February 13, 2006, 482
SCRA 326.
4 G.R. No. 159124, January 17, 2005, 448 SCRA 681.
414
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It has been consistently held that there is no power the exercise of which
is more delicate, which requires greater cau tion, deliberation and sound
discretion, or more dangerous in a doubtful case, than the issuance of an
injunction. It is the strong arm of equity that should never be extended
unless to cases of great injury, where courts of law cannot afford an ade
quate or commensurate remedy in damages.
Every court should remember that an injunction is a limitation upon
the freedom of action of the defendant and should not be granted lightly
or precipitately. It should be granted only when the court is fully satisfied
that the law per mits it and the emergency demands it. (Emphasis
supplied.)”
415
416
5
directed are violative of said right. In the present case, we
find no such actual and existing right in favor of the
petitioner that demands protection by the office of
preliminary injunction. To stress, the written contract
admittedly existing between petitioner and respondent’s
predecessor-in-interest (Urban Bank) is a loan
restructuring agreement which is completely silent about
the dacion en pago arrangement being harped upon by
petitioner.
With the reality that EIB very much puts in issue in the
main case the existence of the alleged dacion en pago
contract relied upon by the petitioner in its complaint, we
rule and so hold, as did the CA, that the issuance by the
trial court of the writ of preliminary injunction to protect a
right asserted by the petitioner under the disputed dacion
en pago arrangement truly constitutes grave abuse of
discretion.
This brings us to the second issue of whether, in
invoking the CA’s jurisdiction to rectify the trial court’s
grave abuse of discretion, respondent EIB thereby ventured
into forum shopping.
We hold in that there is no forum shopping in this case.
There is forum shopping when any party litigant
repetitively avails of several judicial remedies in different
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5 Levi Strauss & Co. v. Clinton Apparelle, Inc., G.R. No. 138900,
September 20, 2005, 470 SCRA 236.
417
position that6
one or the other court would make a favorable
disposition.
Here, EIB assailed the trial court’s order directing the
issuance of the writ of preliminary injunction by filing a
petition for certiorari with the CA. Seeking a reversal of an
adverse judgment or order by appeal or certiorari does not
constitute forum shopping. Such remedies are sanctioned
and provided for by the rules. There will only be forum
shopping when a party seeks a favorable opinion, 7
other
than by appeal or certiorari, in another forum. There is
simply no rhyme nor reason to tag as forum shopping EIB’s
availment of a remedy provided under the rules in a
situation where, as here, the RTC clearly gravely abused
its discretion.
Besides, the function of certiorari before the CA is only
to annul the assailed interlocutory order of the trial court
and nothing else. The CA cannot go beyond the said
assailed interlocutory order and dismiss the main action
which has not yet been resolved with finality.
WHEREFORE, the instant petition is DENIED and the
assailed CA Decision dated 26 March 2004 is AFFIRMED
in toto.
Costs against petitioner.
SO ORDERED.
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418
——o0o——
419
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