Quiz Number 2

1) Real Actions: Actions affecting title to or possession of real property, or interest therein.
[Rule 4, Sec. 1 par 1]

Personal Actions: All other actions are personal actions. [Rule 4, Sec.2]

Examples: Personal action: Action for collection for sum of money

1. Action to recover possession of a personal property

2. Action for a declaration of the nullity of marriage

3. Action for annulment of marriage

4. Action for damages

Real action: the plaintiff seeks the recovery of real property, or, as indicated in section 2(a) of
Rule 4, a real action is an action affecting title to real property or for the recovery of possession,
or for partition or condemnation of, or foreclosure of a mortgage on, real property, Ejectment,
Accion Reinvindicatoria, Accion Publiciana.

2) A real action is “local”, which means that its venue depends upon the location of the
property involved in the litigation. A personal action is “transitory”, which means that its venue
depends upon the residence of the plaintiff or the defendant at the option of the plaintiff.

Examples: Local action: Foreclosure of a mortgage

Transitory action: Recovery of damages

3) Actions in rem, in personam and quasi in rem

(1) An action in rem, one instituted and enforced against the whole world.

(2) An action in personam is one filed against a definite defendant. It is intended to subject
the interest of defendant on a property to an obligation or lien. Jurisdiction over the person
(defendant) is required. It is a proceeding to enforce personal rights and obligations brought
against the person, and is based on the jurisdiction of the person, although it may involve his
right to, or the exercise of ownership of, specific property, or seek to compel him to control or
dispose of it in accordance with the mandate of the court. The purpose is to impose through
the judgment of a court, some responsibility or liability directly upon the person of the
defendant. No other than the defendant is liable, not the whole world, as in an action for a sum
of money or an action for damages.
(3) An action quasi in rem, also brought against the whole world, is one brought against
persons seeking to subject the property of such persons to the discharge of the claims
assailed. An individual is named as defendant and the purpose of the proceeding is to subject
his interests therein to the obligation or loan burdening the property. It deals with status,
ownership or liability or a particular property but which are intended to operate on these
questions only as between the particular parties to the proceedings and not to ascertain or cut
off the rights or interests of all possible claimants. Examples of actions quasi in rem are action
for partition, action for accounting, attachment, foreclosure of mortgage.

Examples: Action quasi in rem: action for partition, action for accounting, attachment,
foreclosure of mortgage.

Action in personam: an action to recover, title to or possession of real property, Action for
specific performance.

Action in rem: Accion reivindicatoria; annulment of marriage; naturalization proceedings.

4) A cause of action is the act or omission by which a party (defendant) violates the rights
of another (plaintiff).

The elements are:

(a) A right in favor of the plaintiff by whatever means and under whatever law it arises or
is created;

(b) An obligation on the part of the named defendant to respect or not to violate such
right; and

(c) Act or omission on the part of such defendant in violation of the right of the plaintiff
or constituting a breach of the obligation of the defendant to the plaintiff for which the latter
may maintain an action for recovery of damages or other appropriate relief.

5) There is a failure to state a cause of action if allegations in the complaint taken together, do
not completely spell out the elements of a particular cause of action. It is submitted that the
failure to state a cause of action does not mean that the plaintiff has no cause of action. It only
means that the plaintiff‘s allegations are insufficient for the court to know that the rights of the
plaintiff were violated by the defendant. (Riano)

6) A failure to state a cause of action is not the same as an absence or a lack of cause of action.
The former refers to an insufficiency in the allegations of the complaint while the latter refers
to the failure to prove or to establish by evidence one‘s stated cause of action. (Riano)
7) Splitting of Cause of Action

The filing of one or a judgment upon the merits in any one is available as a ground for the
dismissal of the others. [Rule 2, Sec.4] Filing of the 1st complaint may be pleaded in abatement
of the 2nd complaint, on the ground of litis pendentia; or A judgment upon the merits in any of
the complaints is available as ground for dismissal of the others based on res judicata. A MTD
under Rule 16 Sec. 1(e) or (f) may be filed in order that the complaint may be dismissed.

Examples: 1) Filing an ejectment case in the MTC, then damages in the RTC.

2) An action for annulment of the sale of certain shares of stock should include a claim for the
recovery of accrued dividends (Bar 1996).

3) In a contract of lease which provides for the payment of rentals in separate installments,
each unpaid installment constitutes an independent cause of action. However, when at the
time the complaint is filed, there are several installments already due, all of them constitute but
a single cause of action and should be included in a single complaint.

4) A claim for partition of real property and a claim for compensation for the improvements
thereon constitute a single cause of action. An action for partition alone will bar a subsequent
action for the recovery of compensation on the improvements.

8) Joinder of Cause of Action: It is the assertion of as many causes of action as a party may have
against another in one pleading alone. It is also the process of uniting 2 or more demands or
rights of action in one action. [Riano citing Rule 2, Sec. 5 and CJS]

Purpose: promote the policy on avoiding multiplicity of suits.

The rule however is purely permissive as the plaintiff can always file separate actions for each
cause of action. [Baldovir vs. Sarte, 36 Phil. 550]

Requisites [Rule 2, Sec. 5]:

a. The party joining the causes of action must comply with the rules on joinder of parties;

b. The joinder shall not include special civil actions or actions governed by special rules;

c. Where causes of action are between the same parties but pertain to different
venues/jurisdictions, the joinder may be allowed in the RTC provided one of the causes of
action are within the RTC‘s jurisdiction and the venue lies therein;
d. TOTALITY RULE - Where the claims in all the causes of action are principally for recovery of
money, the aggregate amount claimed shall be the test of jurisdiction.

Example: a. A secured loan from B, one for P100,000 and the other for P300,000 payable on
different dates, both have fallen due. A may join the two actions in a single complaint.

b. Assume that C has the following cause of action against D: a) P1 million based on a note; b) 1
million based on torts and c) foreclosure of real estate mortgage. Cause of action A and B can
be joined except the action for foreclosure of real estate mortgage which is a special civil
action.

9) Who may be parties to a civil action:

HE MUST HAVE THE LEGAL CAPACITY TO SUE;

HE MUST BE THE REAL PARTY IN INTEREST.

HE MUST BE EITHER [Rule 1, Sec.3]: - A natural person; - A juridical person; The State and its
political subdivisions; Other corporations, institutions and entities for public interest or
purpose, created by law;

Corporations, partnerships and associations for private interest or purpose to which the law
grants a juridical personality, separate and distinct from that of each shareholder, partner or
member [Art. 44, CC] - An entity authorized by law.

The estate of a deceased person [Limjoco vs. Intestate Estate of Fragante (1948)]; o A political
party incorporated under Act 1459 [now BP 68 (Corporation Code)];

A corporation by estoppel is precluded from denying its existence and the members thereof
can be sued and be held liable as general partners. [Riano citing Sec. 21, BP68, The Corporation
Code of the Philippines]

A contract of partnership having a capital of P3,000.00 or more but which fails to comply with
the registration requirements is nevertheless liable as a partnership to third persons. [Riano
citing Art. 1772 in rel. to Art. 1768, Civil Code]

A registered labor union [Sec. 243, PD 442 (Labor Code)], with respect to its property. A
legitimate labor organization may sue and be sued in its registered name. [Riano citing Art.
2429(e), Labor Code]

The Roman Catholic Church has legal capacity to sue. As to its properties, the archbishop or
diocese to which they belong may be a party. [Barlin v. Ramirez (1906); Riano citing Barlin v.
Ramirez and Versoza v. Fernandez(49 Phil. 627)].
 A dissolved corporation may prosecute and defend suits by or gainst it provided that the suits
(i) occur within three years after its dissolution, and (ii) the suits are in connection with the
settlement and closure of its affairs. [Riano citing Sec. 122, Corporation Code]

10) Real party in interest [Rule 3, Sec.2] - The party who stands to be benefited/injured by the
judgment in the suit; The party entitled to the avails of the suit.

Rules: Every action must be prosecuted or defended in the name of the real party in interest.
[Rule 3, Sec.2] The party‘s interest must be direct, substantial and material [Sumalo v. Litton
(2006)].

Indispensable parties - An indispensable party is a real party-ininterest without whom no final

determination can be had of an action. [Rule 3, Sec.7] - A party who has such an interest in the
controversy or subject matter that a final adjudication cannot be made, in his absence, without
injuring or affecting that interest. (Riano) - The joinder of a party becomes compulsory when
the one involved is an indispensable party. [Riano citing Rule 3, Sec.7] Must be joined under any
and all conditions, his presence being a sine qua non for the exercise of judicial power.

Necessary Party [Rule 3, Sec. 8] - One who is not indispensable but 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. Should be joined whenever
possible; the action can proceed even in their absence because their interest is separable from
that of the indispensable party

Husband and wife shall sue and be sued jointly, except as provided by law [Rule 3, Sec. 4]

A minor or a person alleged to be incompetent may sue or be sued, with the assistance of his
father, mother, guardian, or if he has none, a guardian ad litem. [Rule 3, Sec. 5]

Minors (represented by their parents) are real parties in interest under the principle of
intergenerational responsibility. [Oposa v. Factoran (1993)] Note: This doctrine is inconsistent
with Rule 3, Sec. 1 which provides that only natural or juridical persons may be parties in a civil
action. o If a party becomes incompetent/ incapacitated during the pendency of the action, the
action survives and may be continued by/against the incompetent/ incapacitated assisted by
his legal guardian or guardian ad litem [Rule 3, Sec. 18]

Unwilling Co-Plaintiff – A party who should be joined as plaintiff but whose consent cannot be
obtained. He may be made a defendant and the reason therefore shall be stated in the
complaint. [Rule 3, Sec. 10] - The original plaintiff becoming a defendant to the original
defendant‘s counterclaim; also refers to the corss-defendant, or the third (fourth, etc.)-party
defendant. [Rule 3, Sec 1]
Representative as parties [Rule 3, Sec. 3] - Those acting in fiduciary capacity, such as a
trustee/guardian/executor/administrator or a party authorized by law or ROC. - The beneficiary
shall be included in the title of the case and shall be deemed to be the real party in interest. -
An agent acting in his own name and for the benefit of an undisclosed principal may sue or be
sued without joining the principal.

Indigent Party [Rule 3, Sec. 21] - One who has no money or property sufficient and available for
food, shelter and basic necessities. - While the authority to litigate as an indigent party may be
granted upon an ex parte application and hearing, it may be contested by the adverse party at
any time before judgment is rendered. If the court determines after hearing that the party
declared indigent has sufficient income or property, the proper docket and other lawful fees
shall be assessed and collected by the clerk of court. - The authority to litigate as an indigent
shall include an exemption from: o Payment of docket fees and other lawful fees; Payment of
TSN. - The amount of docket and other lawful fees is a lien on any judgment rendered in favor
of indigent party, unless court otherwise provides.

Alternative Defendants [Rule 3, Sec. 13] - Where the plaintiff is uncertain against whom of
several persons he is entitled to relief, he may join any or all of them in the alternative,
although a right to relief against one may be inconsistent with a right to relief against the other.

Entity without juridical personality as defendant. — When two 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. In the answer of such defendant, the
name and addresses of the persons composing said entity must all be revealed.

Locus Standi - Refers to the authority to bring an action before a court of law

Class Suit - An action does not become a class suit merely because it is designated as such in the
pleadings. Whether the suit is or is not a class suit depends upon the attendant facts. A class suit does
not require commonality of interest in the questions involved in the suit. What is required by the Rules
is a common or general interest in the subject matter of the litigation. The subject matter of the action
means the physical, the things real or personal, the money, lands, chattels, and the like, in relation to
the suit which is prosecuted and not the direct or wrong committed by the defendant. It is not also a
common question of law that sustains a class suit but a common interest in the subject matter of the
controversy. (Mathay vs. Consolidated Ban & Trust Co., 58 SCRA 559). There is no class suit when
interests are conflicting.

1. For a class suit to prosper, the following requisites must concur:

a. The subject matter of the controversy must be of common or general interest to may
persons;
 b. The persons are so numerous that it is impracticable to join all as parties;

c. The parties actually before the court are sufficiently numerous and representative as to
fully protect the interests of all concerned; and

d. The representatives sue or defend for the benefit of all (Sec.12, Rule 3).

11) Permissive joinder [Rule 3, Sec. 6] - Parties can be joined, as plaintiffs or defendants, in one
single complaint or may themselves maintain or be sued in separate suits.

Requisites (Regalado): - Right to relief arises out of the same transaction or series of
transactions; Note: SERIES OF TRANSACTIONS – Transactions connected with the same subject
matter of the suit. - There is a question of law or fact common to all the plaintiffs or
defendants; - Such joinder is not otherwise proscribed by the rules on jurisdiction and venue.

12) Compulsory joinder of indispensable parties [Rule 3, Sec 7] - Parties in interest without
whom no final determination can be had of an action shall be joined either as plaintiffs or
defendants.

13) Misjoinder and non-joinder of parties - A party is misjoined when he is made a party to the
action although he should not be impleaded. A party is not joined when he is supposed to be
joined but is not impleaded in the action. (Riano) Neither misjoinder nor non-joinder of parties
is a ground for dismissal of an action. [Rule 3, Sec. 11] 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 as are just. [Rule 3, Sec.11] Any claim against a misjoined party may be severed
and proceeded with separately. [Rule 3, Sec. 11] Non-joinder of an indispensable party is not a
ground for outright dismissal. Reasonable opportunity must be given for his inclusion by
amendment of the complaint [Cortez v Avila (1957)]. Objections to defects in parties should be
made at the earliest opportunity. The moment such defect becomes apparent, a motion to
strike the names of the parties must be made. Objections to misjoinder cannot be raised for
the first time on appeal [Regalado citing Garcia v Chua].

14) Class suit - A class suit is an action where one or more may sue for the benefit of all if
the requisites for said action are complied with.

1. For a class suit to prosper, the following requisites must concur:

a. The subject matter of the controversy must be of common or general interest to may
persons;

b. The persons are so numerous that it is impracticable to join all as parties;

c. The parties actually before the court are sufficiently numerous and representative as to
fully protect the interests of all concerned; and

d. The representatives sue or defend for the benefit of all (Sec.12, Rule 3).

Example: There is a class suit in an action filed by minors represented by their parent, in
behalf of themselves and others who are equally concerned about the preservation of the
country’s resources, their generation as well as generations yet unborn, in a suit filed to
compel the Secretary of the Department of Environment and Natural Resources to 1) cancel
all existing timber license agreement in the country; 2) cease and desist from receiving ,
renewing, processing and approving new timber license agreements. The court agreed that
the subject matter of the complaint is of common and general interest not just to several,
but to all citizens of the Philippines. (Oposa v. Factoran, 224 SCRA 792)

15) Death of a party - where the claim is not extinguished by the death of the party (e.g.
cases involving property and property rights [Bonilla v Barcena (1976)]); [Rule 3, Sec. 16] -
Counsel‘s duty: o Inform court within 30 days after such death of the fact thereof; Give the
name and address of the legal representatives.

- The heirs may be substituted for the deceased without requiring the appointment of an
executor or administrator.

- The court may appoint a guardian ad litem for the minor heirs.

- The court shall order the legal representative(s) to appear and be substituted within 30
days from notice. - If no legal representative is named or if the one so name shall fail to
appear within the specified period, the court may order the opposing party to procure the
appointment of an executor or administrator for the estate.

- The substitute defendant need not be summoned. The order of substitution shall be served
upon the parties substituted for the court to acquire jurisdiction over the substitute party
[Ferreria v Vda de Gonzales (1986].

When the action is for the recovery of money arising from contract and the defendant dies
before entry of final judgment, the court shall not dismiss the suit. It shall continue and his
legal representative or legal heir shall substitute the deceased. Correspondingly, the
judgment shall be enforced against the estate of the deceased. If the action has not yet
been filed, the claim against the estate of the deceased shall be filed with the probate court.

16) Transfer of interest - In case of transfer, the action may be continued by or against the
original party, unless the court directs the person to whom the interest is transferred to be
substituted in the action or joined with the original party.
17)

VENUE
Place where the action is instituted
May be waived
Procedural
May be changed by the written agreement of
the parties
Establishes a relation between plaintiff and
defendant, or petitioner and respondent
Not a ground for a motu propio dismissal
(except in cases of summary procedure; Rule
4, Rule on Summary Procedure)
JURISDICTION
Power of the court to hear and decide a case
Jurisdiction over the subject matter and over
the nature of the action is conferred by law
and cannot-be waived
Substantive
Is fixed by law and cannot be the subject of
the agreement of the parties
Establishes a relation between the court and
the subject matte
Lack of jurisdiction over the subject matter is a
ground for a motu proprio dismissal.

18) Venue of personal actions - At the plaintiff‘s election: [Rule 4, Sec. 2] Where the
plaintiff or any of the principal plaintiffs resides; Where the defendant or any of the principal
defendants resides; In case of a non-resident-defendant, where he may be found.

Venue of real actions - Shall be commenced and tried in the proper court which has jurisdiction
over the area wherein the real property involved, or a portion thereof is situated. [Rule 4, Sec.
1, par 1]

Forcible entry and detainer actions shall be commenced and tried in the municipal court of the
municipality or city wherein the real property involved, or a portion thereof, is situated. [Rule 4,
Sec. 1 par 2]

If the property is located at the boundaries of 2 places, file the case in either place (at the
plaintiff‘s option).

If the case involves 2 properties located in 2 different places: - If the properties are the object
of the same transaction, file it in any of the 2 places; - If they are the objects of 2 distinct
transactions, separate actions should be filed in each place unless properly joined.

Venue of actions against non-residents [Rule 5, Sec. 3]

Non-resident found in the Philippines – For personal actions – Where the plaintiff resides;

For real actions – Where the property is located.

Non-resident not found in the Philippines – An action may be filed only when the case
involves: Personal status of plaintiff - Where plaintiff resides;
Any property of said defendant located in the Phil. - Where the property (or any portion
thereof) is situated/found.

Effects of stipulations on venue

- To be binding, the parties must have agreed on the exclusive nature of the venue of any
prospective action between them. The agreement of parties must be restrictive and not
permissive. [Regalado]

- In the absence of qualifying restrictive words (e.g. ―only/solely/exclusively in such court‖),

venue stipulation is merely permissive; that is, the stipulated venue is in addition to the venue
provided for in the rules. [Polytrade Corp. v. Blanco (1969)]

- The court may declare agreements on venue as contrary to public policy if such stipulation
unjustly denies a party a fair opportunity to file suit in the place designated by the Rules
[Regalado, citing Hoechst Philippines v Torres (1978)].

19) Rules on Venue do not apply

1. The Rules do not apply (a) in those cases where a specific rule or law provides
otherwise; or (b) where the parties have validly agreed in writing before the filing of the
action on the exclusive venue thereof (Sec. 4, Rule 4).

Example: 1) Quo Warranto proceeding commenced by the solicitor general and filed not in the
CA or the SC, is to be filed in RTC of Manila. The rule does not consider the residence of the
respondent. (Sec. 7, Rule 66, Rules of Court)

2) As a general rule action arising from libel shall be in the RTC of the province/city where the
article was first printed and published (Rule of Place of First Print and Publication).