Remedial Law 2017 Notes // Jurists Review Center // Atty.

Tranquil Salvador // May 28, 2017

1. Jurisdiction over the subject matter

2. Subject matter over the person of the plaintiff
3. Jurisdiction over the person of the defendant

See RA 7691

RTC JURISDICTION

November 2015 case Louis Gonzales VS JGH Land – Special Jurisdiction in relation to Original Jurisdiction
Distinction – Exercise of Jurisdiction (Not a ground to dismiss the case) VS Subject Matter Jurisdiction (Conferred by Law)
That case should have been referred to the Executive Judge for further re-raffle or if there is no available special commercial court, in
the next judicial station.

RTC - MM exceeding 400K; Outside MM exceeding 300K

RTC - MM exceeding 50K; Outside MM exceeding 20K – assessed value of real property

Quieting of title (See declaratory relief, other similar remedies) – Sabitsana VS Mortegi; Malana VS Tapa – Always with the RTC
Reformation of contract – incapable of pecuniary estimation RTC
Judicial consolidation for failure to redeem a pacto de retro sale – incapable of pecuniary estimation RTC

Expropriation – incapable of pecuniary estimation (exercise of the right)

Fareast Bank VS Shemberg; Ruby Shelter Case – title to possession, if the only intention is to cancel a document (ex. Real estate
mortgage) it is not-capable of pecuniary estimation because it does not pass on the title.

If the ultimate relief is to pass on title – rescission of the deed of absolute SALE but effectively title is transferred back to you – Assessed
value has to be determine.

But if based on the factual antecedent is to cancel the document (deed of sale, deed of assignment, real estate mortgage) without in
anyway transferring title to or possession – incapable of pecuniary estimation. You have to look at the RELIEF PRAYED FOR

RTC:
Family cases
Annulment of marriage
Legal separation
Nullity of marriage
Judicial separation of property (regardless of the value of the property of the spouses)
Custody of children
Violence against women and children (Civil aspect)

RTC: those which will not fall with any court

Jurisdiction is also determined by the allegations of the complaint

Assessed value of the property was not indicated – recovery of possession – the case should be dismissed because there is no way by
which the judge could determine if it has jurisdiction

MTC JURISDICTION

RA 7691 – Summary procedure on ejectment cases regardless of the amount of the claim or unpaid rentals

Summary procedure in MM not exceeding 200K; Outside MM not exceeding 100K

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Remedial Law 2017 Notes // Jurists Review Center // Atty. Tranquil Salvador // May 28, 2017

What if the value of the estate subject of distribution or the estate subject of the will to be PROBATED is in the value of 150K in MM
because that is where the place the decedent last resided at the time of his death, will it fall under the rules on summary procedure?
The answer is NO because PROBATE proceeding is not under summary procedure it has its special rules.

Jurisdiction on Small Claims not exceeding 200K purely civil in nature

Note: in Small claims you must declare that you are a banking or lending institution otherwise the case may be dismissed or you may
be declared in contempt

COURT OF APPEALS JURISDICTION

Part of it Rule 46 Section 1

Certiorari, prohibition, mandamus

Quo warranto, habeas corpus, writ of amparo, writ of habeas data, anti money laundering, and all the others where the law specially
confers jurisdiction over the court of appeals

Do you have original cases in the CA? YES – the abovementioned are original jurisdiction/cases in the CA
Do you have an ordinary civil action the CA? NONE
Ordinary Civil Action – cases that has cause of action must be filed in the trial court

Appellate jurisdiction – 1. File the appeal within the proper reglementary period; 2. Pay the docket fees within the proper reglementary
period. Rule 40 Section 5, Rule 41 Section 4

SUPREME COURT JURISDICTION

Rule 56 Section 1
Certiorari, prohibition, mandamus, quo warranto, habeas corpus, disciplinary action against members of the bench/bar, actions
against ambassadors, ministers and ministers pleni-potentiary.

Does the SC have jurisdiction over constitutionality of the law, treaty, executive agreement or an ordinance – YES it is enshrined in the
constitution.

Does the SC have jurisdiction over cases over validity of a tax imposition – YES it is enshrined in the constitution

What is your understanding of concurrent jurisdiction?

What is original and exclusive jurisdiction?

Original and exclusive – it can only be filed originally in that court and exclusively in that court, you cannot file it in any court otherwise
it will be dismissed for lack of jurisdiction

Concurrent jurisdiction – RTC, CA, SC in some cases have concurrent jurisdiction – certiorari, prohibition, mandamus, quo warranto,
habeas corpus and custody of minors, writ of amparo (concurrent jurisdiction). But when you talk of concurrent jurisdiction you will
have to respect the hierarchy of courts. When in RTC you cannot go directly to SC on a rule 65 unless it is a pure question of law under
Rule 45.
That is concurrent jurisdiction but the very moment the court acquires jurisdiction it excludes the rest of the courts.
Lack of jurisdiction over the subject matter is a ground for a motion to dismiss. When can it be raised? You are to raise it in an answer,
in a motion to dismiss under rule 16.

Sir hindi ko napansin, nagsagutan na nag pre-trial na nag trial na nag appeal na – can you file a motion to dismiss? YES under Rule 9
Section 1 – all grounds not raised in an answer or a motion to dismiss are considered waived unless it is a non-waivable defences.

Lack of subject matter jurisdiction could be raised at any time even on appeal.
Except when you are barred by laches on question of jurisdiction (Tiham VS Sibonghanoy)

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In summary procedure can you file a motion to dismiss on the ground of lack of subject matter jurisdiction? YES. As a general rule
motion to dismiss is prohibited except subject matter jurisdiction or failure to refer the matter to a prior barangay conciliation.

In small claims there is no exception, motion to dismiss a statement of claim is prohibited

Special Jurisdiction – that goes to the exercise of jurisdiction

Family Court
Special Commercial Court
Intellectual Property
Drugs Court
Environmental Court

These courts have their general and original jurisdiction except that there is a law that further gives the RTC special jurisdiction.

FILING FEES

Jurisdiction over the person of the plaintiff

Rule 1 Section 5 – you have to file a complaint to commence an action

Manchester, Sun Insurance Cases

Complaint – Body, Caption, Relief Prayed for – the clerk of court will look at the prayer as the basis of the filing fee

Manchester Case – Body has different amount indicated from the Prayer for the cause of action; insufficient filing fees were paid. Can
amendment cure the defect? The court has not acquired jurisdiction in the first place so there was nothing to amend besides there
was an intent to defraud the government – Case must be dismissed.

Intent to defraud the government is a question of fact

Sun Insurance case – The body and the prayer have different amounts prayed for – in his case the court is more reasonable, liberal
and fair. The plaintiff does not intend to defraud the government, the filing fees were not sufficient, the plaintiff relied in good faith
to the assessment of the clerk of court (Rivera VS Del Rosario) – The case was not dismissed. The plaintiff will be allowed to pay the
insufficiency within the proper reglementary period or prescriptive period

Prescriptive period – period when you are to enforce your claim

Reglementary period – when you talk of appellate jurisdiction or certain petitions which have to be filed within proper reglementary
period you also have to pay filing fees within the reglementary period – Petition for review on certiorari under rule 45 (15 days),
petition for review under rule 42 and 43 (15 days), petition for certiorari under rule 65 (60 days),
Answer to containing a permissive counterclaim.

Are you to pay filing fees to a compulsory counterclaim? Rule 141 Section 7
Sun Insurance – pay filing fees for permissive counterclaim it did not cover compulsory counterclaim because that was before the
amendment of Rule 141 in 2004. Rule 141 expressly provides that you are to pay filing fees on a compulsory counterclaim. Are you to
pay such? Immediately after the few months after the effectivity of the amendment of rule 141 the IBP wrote the SC requesting for
the suspension of that provision and the SC agreed to that. Now subsequently before the end of 2010 in 2009 because of the Korean
Technologies case that created further confusion stating that Rule 141 is express in providing that counterclaims must be paid. But
the SC clarified it sometime in 2009 that there is no required payment of filing fees for a compulsory counterclaim. Now NO FILING
FEES are required for payment of compulsory counterclaim even if it is in Rule 141 Section 7.

Lien on the Judgment award

In what instance can we say that there is a lien on the judgment award?
1. When the court awards something that is not claimed

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2. If in the case of Proton Filipinas, if the interest has accrued during the pendency of the case
3. Indigent litigant
4. Environmental cases

Hindi porket hindi ka nagbayad ng filing fee entitled kana sa lien on the judgment award

If the claims are ripe and available already at the filing of the complaint you should have paid the filing fees. Otherwise, you will be
faced with either the Manchester or the Sun insurance (intent to defraud).

Do-all-metals VS Security Bank – there was a subsequent supplemental complaint, there was filing fees paid in the original complaint,
do you need to pay filing fees for a supplemental complaint so that the court will acquire jurisdiction? YES. If the filing fees was not
paid for the supplemental complaint the court can only award on the original complaint but not on the claims of the supplemental
complaint.

Unicapital VS Consing – a situation of a metered complaint/claim for damages

Plaintiff filed a complaint for claim of damages 3 million per month (metered complaint)
Defendant argued that that should be dismissed for non-payment of the correct filing fees
SC said that the filing fees on the metered claims shall be a lien on the judgment award if ever it is awarded.

Filing fees has an impact on subject matter jurisdiction

RTC has jurisdiction which is incapable of pecuniary estimation because in Rule 41 if the case is incapable of pecuniary estimation the
filing fee is on fixed amount (rescission, specific performance, annulment of contract)

Mejares VS Ranada – the victims of human rights violations won in a foreign court in Hawaii so they filed an action for enforcement of
a foreign judgment in Makati. The plaintiffs said that the filing fees should be fixed amount because it is incapable of pecuniary
estimation. Defendant estate of Marcos said that the filing fees should be dependent on the award. The Judge ruled that it is incapable
of pecuniary estimation. SC said that the claim has value amounting to millions if you look at section 7 (those claims on the estate
other than by judgement), the case before hand has judgment – so hindi na dapat mag bayad ng filing fee? Petitioner Mejares claims
that the action is incapable of pecuniary estimation (enforcement nalang ito eh), respondent Marcoses it has a value. SC initially state
that Mejares is wrong since the claim has value, SC also state the Marcoses are wrong since the Rules cover that filing fees are to be
paid is those claims on the estate without a judgment (the complaint already has judgment). SC ruled: THOSE OTHER CLAIMS ARISING
FROM PROPERTY. The SC Ruled that the petitioners must are still to pay a fixed amount although the SC did not sustain the claim for
purposes of filing that it is incapable of pecuniary estimation. ENFORCEMENT OF A FOREIGN JUDGMENT IS WITHIN THE RTC
JURISDICTION (not because it is incapable of pecuniary estimation but because the law says it is so).

INDIGENT LITIGANTS

Algura VS The Government of Naga - If someone claims that he is indigent he must follow Rule 141 Section 19
Indigent – someone whose income and that of his immediate family does not exceed double the monthly minimum wage and does
not have real property with a fair market value not exceeding 300K. If you fall exactly within the definition you are an indigent. If you
fall under the salary limit but inherited real property exceeding the limit can you ask to be declared as an indigent? YES Under Rule 3
Section 21 as long as you pass the indigency test (that your income is not sufficient for your food, shelter and other basic necessities)
That is left within the discretion of the court.

Once declared indigent filing fee shall be a lien on the judgment award; transcript is free

Do you need filling fee on petition for Writ of Amparo? NO

Writ of Habeas Data? YES unless you are an indigent
Small claims? If a person has claims exceeding 5 claims at a single instance 500 per claim; claims exceeding 10 claim +100 per claim
(600); claims exceeding 15 claims +100 (700) under the rule on small claims.

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JURISDICTION OVER THE PERSON OF THE DEFENDANT

Court acquires upon proper service of summons

Natural Person – service of summons personally; refuses to accept – TENDER; if the person if not there – SUBTITUTED SERVICE
Juridical Person – Distinguish DOMESTIC or FOREIGN
Domestic – service under Rule 14 Section 12 – President, GM, MP, Corporate Secretary, Treasurer, In-house counsel
Foreign – Authorized agent, Resident agent, representatives; not transacting business in the PH – R14S12P2 with leave of court by
facsimile or other electronic means, by publication in the place where the defendant corporation holds office and service by registered
mail on his last known address, that the service of summons be coursed through and with the assistance of the DFA. Note: be mindful
of R14S12 and R14S11

Even if the summons is improperly served but you voluntarily submitted to the jurisdiction of the court the jurisdiction over the person
is acquired. Lack of jurisdiction over the person of the defendant is a waivable ground. Improper of service of summons is cured by
seeking affirmative relief by the defendant (without qualified appearance)

Dy VS Bibat-Palamos – Exception to the rule on hierarchy of courts

Loan, Collateral is a vessel, creditor states that the debtor is in default. Case pending 20 years. Reached the SC it ruled that there is
default. In the span of 20 years events settled in (Ship sunk, went to 3 rd party, etc.). When the case was remanded to the RTC for the
purposes of execution, the court ruled that the vessel must be returned to the debtor spouses. Debtor spouses refused because the
vessel was already dilapidated severely. The parties were not in agreement with the Judge. The parties questioned the granting of
the writ of execution, they went directly from the RTC to the SC.

Heirarchy of Courts exception

1. If the right of the party is extremely violation when it has been pending for quite some time and in the interest of justice substantial
rights will be protected. SC said that the case be best to be decided now rather than to dismiss the case.

Primary Jurisdiction – Nesperos VS Ducusin

The court will not dismiss but will refer to the agency which has primary jurisdiction and in this case the Secretary of the DAR has
primary jurisdiction

March 2017 Case of Chua VS Alliance Select Foods

Stockholders meeting was continually delayed because the corporation wants some resolutions to be approved first before the
stockholders meeting but the plaintiff is entitled to 1 stockholder’s meeting every once a year.

Defendant insists filing of docket fees based on the plaintiff’s million peso value of shares
RTC judge dismissed the case for not properly paying the filing fees plus ruled that the plaintiff intended to defraud the government

CA ruled that the plaintiff did not intend to defraud the government but they still have to pay around 10 million filing fees (for just
wanting to have a stockholders meeting)

SC ruled that the case is under the nature of incapable of pecuniary estimation plaintiff only wanted to call for a stockholder’s meeting.
The case reiterated Luim Case (every intra-corporate dispute has a property in litigation). SC said that the Luim Case is only an Obiter
Dictum. SC said that not all intra-corporate dispute involve property in litigation.

CIVIL ACTION

Divided into OCA and SCA

OCA – every OCA must have a cause of action, 1. Right of the plaintiff, 2. Duty of the defendant to respect that right, 3. Breach or
violation (most important). Covers filing of the complaint up to execution.

SCA – SCA is not OCA, it is not covered by a cause of action except ejectment cases particularly unlawful detainer particularly when
the SC said that there is a cause of action.

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Does expropriation require breach of contract? NO. All that the government would like to do is to identify a property which is needed
for a public purpose and pay just compensation, you don’t need a breach

How about Partition? NO you don’t need a breach.

Macaslang VS Zamora the court said that in unlawful detainer cases there is a cause of action and it arises when the lessee violates his
obligation under the lease contract and that despite demand he refuses to comply and vacate and effectively arises into cause of
action

SCA – covered by special rules

Special Rules – if there is a question on declaratory relief, go to DR and if it is inadequate supplement it with Ordinary Procedure; if
you have a case in partition apply special rules and if it is inadequate apply Ordinary Rules suppletorily.

The Rules of Court applies in all courts except as otherwise provided for by law – this has a partner provision in Evidence R128S2 – the
rules on evidence will apply in all courts except as otherwise provided for by law.

What is a civil action? MEMORIZE – it is necessary for an enforcement or protection of a right or prevention or redress of a wrong.

When do you say that an action is a criminal action? It is when an information is filed in court and the state is ready to prosecute. At
the level of the prosecutor/ombudsman the procedure is only for the purpose of determining whether a probable cause exist.

Can the office of the prosecutor in anticipation of a future proceeding conditionally examine the respondent who will be an accused
in the case?

When can you conditionally examine a witness? R119S12, 13, 15 a conditional examination can only apply if the case is already in
court, an information has been filed in court. At the level of the preliminary of investigation there is no way by which you could protect
the testimony of a witness. What they could do is to put the witness protection program but they cannot protect the testimony before
the information has been filed in court because R119S12, 13, 15 will only apply once a case has been filed in court.

Special proceeding – establishes a status or a right

Why is there a provision in the ROC that the ROC do not apply in election, land registration, cadastral, insolvency cases? Because the
law gave them their own rules and that same rule gave jurisdiction to the RTC.

The concept of liberal application of the rules – when the law says that it does not promote that you ignore the rules.
You file an appeal outside of the reglementary period, you filed it 3 days late, you filed a motion without a notice of hearing, you filed
a petition under Rule 65 without the duplicate original or certified true copy – what is the effect of all of this? It depends upon the
rules on what will happen but in all of these situations you will claim section 6 (liberal application of the rules). And there is no hard
and fast rule, it would depend on the facts of the case, it is left in the sound discretion of the court. You could only use it to persuade
the court, you cannot claim it as doctrinal, the court is not bound to accept your plea for the liberal application of the rules.

Medical Plaza Makati Condominium VS Cullen (2013) – jurisdiction is determined by the allegations of the complaint, it is not affected
by the plea or theories set up by the defendant in an answer or a motion to dismiss. RA9904 (Magna Carta for the Homeowners
Association) empowers the HLURB to hear and decide intra-corporate, inter/intra-association controversy concerning homeowners
association. But the SC said this provision cannot be applied to condominium unit owners and a condominium corporation, HLURB has
no jurisdiction.

In this case the issue was WON there was an intra-corporate dispute and WON the court had jurisdiction
Relationship Test; Nature of the Controversy Test

Relationship Test – it should be between the corporation, partnership or association and the public; it should be between the
corporation, partnership or association and the state insofar as the franchise or license is concerned; the corporation, partnership or
association and its shareholders, partners and members; among the stockholders, partners or association themselves.

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Nature of Controversy Test – the controversy must not only be rooted in the existence of intra-corporate relationship as mentioned
above but must as well pertain to the enforcement of the parties correlative rights and obligations under the corporation code or
under regulatory rules.

RULE 2 CAUSE OF ACTION

How many causes of action in a single action? You can have as many causes of action in a single action, you can have it in the alternative
or otherwise.

Pwede ba yung isang cause of action and have multiple cases? NO it amounts to splitting causes of action. Splitting cause of action is
Forum Shopping.

Can I have 1 case and 1 cause of action? YES

I have an action against MR. A for breach of contract for delivery of materials and because of that I suffered actual damages for the
delay of the construction of my home, moral damages for sleepless nights and was deeply embarrassed in the whole community,
exemplary damages, and to pay for attorney’s fees to hire a good lawyer. How many causes of action? Only 1. Causes of action is
counted from the BREACH it is not the number of the damages. The claims beforehand arose from 1 BREACH, it arised from 1 violation.

Mr. A borrowed money from me in the amount of 400,000 and he promised to pay me on January 30, 2017 then he borrowed money
from me again in the amount of 500,000 he promised to pay me on March 30, 2017. He borrowed money again from me in the amount
of 600,000 and this time it is due on May 30, 2017 (Note: it is not May 30, 2017 yet). Come February 15 he was note paid on the
promissory note due on March 30, 2017. Come April 15, 2017 the promissory note for the 500K was not yet paid. How many causes
of action do I have? TWO. Let us say passed May 30, 2017 and there was still no payment, how many cause of action do I have? THREE.
It is counted in terms of the BREACH. Incidental damages are not causes of actions.

Following the examples – 400K, 500K, 600K let us say it is June 15, 2017 today where can I file the action?
Am I compelled by the law to bring it into a singular action? NO but I could opt to have a joinder of causes of action under R2S5
amounting to 1.5M it will fall within the jurisdiction of the RTC.
Can I decide to institute 3 cases? YES R2S5 is not mandatory
If you decide to bring it into one action that is called the TOTALITY RULE

400K – can be filed in the MTC

500K – can be filed in the RTC
600K – can be filed in the RTC

I have an action for specific performance, can I join that action with my petition for certiorari under R65? NO because these are covered
by separate rules (Special Procedure)

Can I join in one action certiorari, prohibition and mandamus? YES because these are all covered by Rule 65 for as long as the requisites
are available.

Can you join in action for nullity of marriage an action for adoption? NO, although it appears that these are both covered by special
rules they have their own separate rules.

Defendant 1: Construction of Building (has own set of facts)

Defendant 2: Sale of property (has own set of facts)
Defendant 3: Borrowed money (has own set of facts)
Defendant 4: Borrowed personal property (has own set of facts)

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R2S5P1 does not say plaintiffs or defendants, it is an action of one party against to another and you have to read this in relation to the
R2S5 that you will have to refer to R3S6 permissive joinder of parties (if there are multiple parties presented).

Question is did it arise from the same transaction or series of transaction (jointly, severally or in the alternative)? Is there commonality
of fact or law? If NO there can be no permissive joinder of parties. OPTION: to file an action against each one of them separately I
cannot join them together.

Maraming party on one side:

Same transaction or series of transaction – can be joined together in one action (Pantranco Case)
Because there is a common Fact or a common Law – can be joined together in one action

If it is suit of plaintiff A against defendant B:

You don’t need to pass the rule on the same transaction or series of transaction – kahit na anong maisipan ko under the sun pwede.

Multiple causes of action and there are different causes of action falling in different courts
For as long as one is with the RTC everything goes to the RTC for as long as all of them are OCA unless I decide to file these cases
separately respecting the rule on venue (for as long as venue lies therein).

Joint causes of action has REAL and PERSONAL actions – simply follow what the law says it goes to the RTC for as long as venue lies
therein.

Citytrust Case – SC ruled that there was no cause of action while you could say that there is some breach there was no showing of an
injury or a damage (damnum absque injuria). To be able to bring a cause of action you must have to establish injury or damage.

Funa VS Agra – exception to the rule on moot and academic. The SC decide to resolve the case
1. There was grave violation to the constitution
2. The case involve a situation of exceptional character and was of paramount public interest
3. The constitutional issue raised require the formulation of controlling principles to guide the bench, bar and public
4. The case was capable of repetition yet evading review

RULE 3 PARTIES

Real party in interest (private suits) – is someone who would benefit or will suffer injury by reasons of the avails of the action.
Locus Standi (public suits) – not in the rules of court, a right of appearance in a court of justice on a given question. In private suits
standing is governed by the real parties in interest. Here the plaintiff asserts a public right in assailing an illegal official action does so
as a representative of the public. Most common action is a taxpayer’s suit.

1. Taxpayers: there must be a claim of illegal disbursement of public funds or that the tax measure is unconstitutional
2. Voters: obvious interest in the validity of the election in question
3. Concerned citizens: the issues raised are of transcendental importance which must be settled early
4. Legislators: the official action complained of infringes upon the prerogatives of the legislators (David VS Arroyo)

On the matters when the cases involve constitutional issues

Araullo Case – disbursement acceleration program. Outlined again legal standing. Definition of locus standi evolved overtime. By
reason of one’s governmental act you suffered some personal injury until such point that direct was no longer necessary during
instances of transcendental importance, when it is for the public benefit.

Indispensable Party – someone who should be impleaded in order to have a final determination of the case
Necessary Party – someone who should be impleaded in order to have a complete determination of the case

What if an indispensable party was not impleaded despite the order of the court – case would be dismissed

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What if a necessary party was not impleaded despite the order of the court – there will be a waiver of right to claim against the non-
impleaded necessary party.

What if the court renders judgment in the absence of an indispensable party? The judgment is null and void
What if the court renders judgment in the failure to implead necessary party? The judgment is still valid

Mesina VS Fian 2014

Can the heirs of Mesina a non-juridical entity be a party to a case? YES
If there is a question on the personality of a party of WON it’s an indispensable party should it be dismissed outright? NO there must
be an order to implead first before the case is dismissed. Only after non-compliance with the order will the court dismiss the case.

Indispensable parties has an impact on intervention (Loyuco Case) – who can intervene? Someone who has legal interest.
R19S2 a party may intervene at any time before a judgment is rendered in the trial court
Once a judgment has been rendered there is no intervention allowed unless when the intervenor is an indispensable party even if
there is a final judgment

Macawahib VS PNP – (Retirement case involving Police officer Macawahib) failing to implead the PNP which is the agency directly
involved will make the judgment null and void for failure to implead the indispensable party. The interest of the PNP on who should
have retired is involved.

Serwil VS Delantar – if it affects filiation or hereditary rights all other individuals who will be affected should likewise be impleaded
together with the registrar.

Who can be parties to an action? Natural person, juridical person, entities authorized by law

R3S15 – A non-juridical entity can also be a party to an action except that under section 15 a non-juridical entity cannot sue but a non-
juridical entity can be sued under the name by which they are publicly known. Para sa mga nanloloko na pinalalabas nila na kompanya
sila. Once they answer they will have to disclose their true names and addresses.

If you sue a non-juridical entity under the name by which they are commonly known how do you serve summons? R14S8
To anyone of them or to a person in-charge of the office.

If the court renders a judgment against the members of a non-juridical entity will they be held liable individually? YES under Rule 36

Natural person – Minor, Married person, representative capacity

Capacity – R8S4 should be of legal age
Can that capacity be questioned? In an answer you can question the legal capacity but it is not enough to specifically deny the capacity
but you must attach documents to show that the person indeed has no legal capacity

Can a minor be party to the case? Only if he is assisted by the parent, guardian, or guardian ad litem. On his own he cannot institute
or be sued in an action.

Ex. Plantiff VS Rico Salvador (Minor) assisted by Tranquil Salvador

Married Natural person – when you sue a married person as a rule you should implead a spouse.
Exceptions
1. Involves the exclusive property of the spouse (wife – paraphernal property; husband – capital property)
2. Involves the act of negligence of one spouse
3. Involves the practice of profession
4. Suit of one spouse against the other

In law on evidence take note of the marital disqualification and marital privileged communication

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Natural person represented by another – there must be a Special power of attorney (one acts on behalf of another and therefore he
is an attorney in fact). You will have to disclose your principal with some exceptions

Petition for writ of amparo how do you serve the writ? Personal service, if not substituted service in the same manner as summons.

Class suit – There common interest, public or general interest that is numerous and impracticable to bring them all to court. Can they
sue or be sued? Class suit can only be instituted by a class of plaintiffs

Citizen’s suit – it is not a class suit (Oposa VS Factoran) based on environmental rules brought about by any Filipino citizen in
representation of others including minors or generations yet unborn. Citizen’s suit is a reflection of the fact that the right to a healthful
and balanced ecology is a shared right that’s why any Filipino citizen in representation may be filed. This is not purely personal, in fact
the failure to include in the complaint any real party in interest is not fatal

Juridical person – R8S4 that the corporation is duly organized and existing under the law of the Philippines if it is a domestic
corporation, if it is a foreign corporation – in a foreign jurisdiction.

Can a domestic corporation sue and be sued? YES

Can a foreign corporation sue and be sued? R14S12 it does not use doing business, it uses the word transacted
Foreign corporation doing business and has a license in the Philippines - YES
Foreign corporation doing business but not licenses? General rule it cannot sue/ It can be sued
Exceptions:
1. (Agelent Technologies) if it is barred from raising it on the ground of estoppel (defendant benefited from the arrangement but the
plaintiff foreign corporation sues for violation but the defendant says that it cannot sue, defendant is barred by estoppel)

2. Isolated transaction – there is no regularity, the transaction is isolated, irregular – even in the absence of the license that foreign
corporation no having license can sue and can be sued.

Summons:
Domestic Corporation – R14S11
Foreign Corporation – R14S12 (2 paragraphs transacted/not transacted in PH)

3. Entities authorized by law – not necessarily incorporated but allowed by the law to sue or be sued (Estate, Political Parties, Labor
Organizations)

REAL PARTIES IN INTEREST

Who are the real parties in interest when it comes to a contract? Those who signed or executed the contract
Exception:
If the contract was executed in a favour of a third party (Contract Pour au trui). Even if he is a party in a strict sense who executed the
agreement he is a real party in interest in the event that his rights have been violated

Is a co-owner of a credit an indispensable party? Baloloy VS Adlawan in a co-ownership co-owners may bring actions for the recovery
of co-owned property without the necessity of joining all the other co-owners as co-plaintiffs because the suit is presumed to have
been filed for the benefit of his co-owners.

Negui VS CA – Article 487 of the Civil Code which provides that any of the co-owners may bring an action for ejectment cover all kinds
of action for recovery of possession.

Note: A co-owner is not an indispensable party, he is only a necessary party (Article 487)

Carandang VS De Guzman for suits to recovery properties all co-owners are real parties in interest however pursuant to Article 487 of
the Civil Code anyone of them may bring an action, any kind of action for the recovery of a co-owned property. Therefore only one of

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the co-owners namely the co-owner who filed the suit for the recovery of the property is an indispensable party. The non-impleaded
co-owners are considered as necessary party.

What is the nature of a corporate rehabilitation case? Is it an OCA? Exim Trade VS Asiatrust distinguished
OCA – instituted for the enforcement or protection of a right or a redress of a wrong
Rehabilitation case – special proceeding, a petition for rehabilitation need not state a cause of action. It is one that seeks to establish
a status of a party or a particular fact. The status or fact sought to be established in a rehabilitation case is the inability of the corporate
debtor to pay its debts when they fall due so that a rehabilitation plain containing the formula for payment may be approved by the
court in the end.

CLASS SUIT

One of common or general interest

Test: is the interest diverse? If yes there is no class suit; is there a representation matter (Islamic Dawah Case) in other words adequacy
of representation.

Class suit does apply to labor cases.

When claims against the defendant would vary all of the persons should be named as parties. In a class suit a party could be
represented. But where the interest are diverse all of the parties must be impleaded and what you see there is not a class suit but a
joinder of causes of action. In joinder of causes of action and there are multiple parties you will have to pass the test of permissive
joinder of parties.

Adequacy of representation (Islamic Dawah Case) – in the absence of diversity the classic example is the case of Oposa VS Factoran
(Intergenerational interest is the common or general interest).

In an action instituted by Homeowners Association is that a class suit? NO it is an action in a representative capacity in pursuit of their
respective interest (MIAA VS Rivera Homeowner’s Association). Through its president is suing in a representative capacity as
authorized by the board resolution.

Association of Flood Victims and Hernandez VS COMELEC 2014 (Party-list case) – allegation contains that they are abound to be
incorporated. SC said a non-juridical entity in the process of incorporation cannot be a party to a case it did not fall under any
classification (Natural person, Juridical person or an entity authorized by law).

Is a misjoinder of parties a ground for a motion to dismiss? NO

What if by chance you failed to include an indispensable party will it result to a dismissal of the case? YES

SUBSTITUTION OF A PARTY

Rule 3 Sections 16, 17, 18 is substitution and it is a requirement of due process, it is not a jurisdictional requirement

Section 16
Death of a party whether the plaintiff or the defendant
That the death of a party does not extinguish the action
If the action is purely personal such as support or performance it does not survive
What is the duty of the lawyer? Inform the court within the period of 30 days the fact of death. The 30 days is counted from the fact
of death (not from the knowledge of the fact of death); name the legal representative/s; the legal representatives can be chosen from
an heir, executor/ administrator; if he fails to inform the court he is exposed to disciplinary action.

Is substitution complete? NO because after doing the duty of the counsel the court has do to something – the court should issue a
notice requiring the substitute or representative to appear and to order substitution, after this substitution is complete.

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What if the substitute or the representative does not appear? The court can order or require the opposing counsel to name the
substitute from the executor or administrator.

What if the counsel notified the court, the court did not render an order for substitution and rendered a judgment, is there a valid
judgment? NO the judgment is null and void

The same with the scenario about but what if there are multiple parties (Brioso Case)? The judgment is valid as to the two other parties
but void as to the one where there was no successful substitution.

What if the court did not issue an order for substitution but the heir participated in the proceedings (representative appeared and
actively participated)? The judgment is valid (the essence of this provision is due process)

Section 20 – NOT SUBSTITUTION.

It will apply when the defendant dies
The nature of the action is for recovery of money whether express or implied

The case will continue if there is yet no final judgment, it will continue against the estate.

R118S4 CRIMINAL PROCEDURE

That provision refers to an accused. This is a superfluous provision because it only applies to civil aspect of the criminal action.
To make the rules simple, in criminal case death extinguishes the case. If the accused died after arraignment both civil and criminal
liability arising from the delict is extinguished. If the accused died before arraignment the criminal liability is extinguished the civil
aspect can be claimed from the estate. The rules on criminal procedure could have just referred to Rule 3 Section 16 (purely civil). In
independent civil action that is also civil it could have also been referred to Rule 3 Section 16. Don’t be confused with that section.

Back to Rule 3 Section 17

The public dies, resigns or ceases to hold office.

The successor will continue or maintain the action of the predecessor. If the successor does – no problem
If there is no such showing, the successor must be given notice and opportunity to be heard whether he wants to continue or to
maintain the act of his predecessor.

TRANSFER OF INTEREST

There is a pending case but while it is pending I transferred the interest over the piece of land to my brother.
Can the court continue the case against me by the plaintiff? YES
Can there be a valid judgment? YES
Will it affect my brother? YES
Can the court order that my brother be impleaded together with me? YES
Can the court order that I be substituted by my brother? YES

It does not mean that if my brother does not substitute me there can be no valid judgment unlike the previous provisions on
substitution by reason of death.

DURING THE PENDENCY OF THE CASE THE PARTY BECOMES INCAPACITATED OR INCOMPETED (Note that when the party started the
case he is perfectly fine)

The case will continue but the party must be assisted

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RULE 4 VENUE

Personal Action
Real Action
(NOT IN PERSONAM, NOT IN REM because it refers to the effect of judgment)

Real Action – it will be instituted in the place where the property or a portion of it is located
Venue can be entered into agreement by the parties who executed the contract. There is agreement before the action is instituted;
there must be words of exclusivity, if none what was agreed upon is only in addition to what the law provides.

Rules on venue is affected by the phrase “when another law provides”. If there is another rule on venue use it instead of Rule 4.

In construction disputes – if there is a stipulation for exclusivity in a foreign country, the very moment one of the parties opts to place
the venue in the Philippines (Construction Industry Arbitration) the venue is in the Philippines because it is referred to by law (Hutama
Case)

Personal Action – where the plaintiff or the defendant resides at the option of the plaintiff. If there are multiple plaintiff or defendants
– where the plaintiff or principal plaintiff reside or defendant or principal defendants reside at the option of the plaintiff.
What if there is a non-resident defendant?
1. If it is a personal action the defendant does not reside in the PH – at the plaintiff where the plaintiff resides or where the defendant
may be found at the option of the plaintiff.
2. If it involves the personal status of the plaintiff and the defendant does not reside in the PH (Ex. Nullity of marriage) – in the
place where the plaintiff resides.
3. If it involves the property of a non-resident defendant (Balikbayan/ OFW) – in the place where the property is located

Last 2 is highlighted because it has a direct relation to Rule 14 section 15 – extraterritorial service of summons.

Paglaum Case
Contracts entered into:
1. Real Estate Mortgage 1 – Cebu venue exclusively
2. Real Estate Mortgage 2 – no venue stipulation
3. Restructuring Agreement – has venue stipulation

The venue stipulation in the most recent contract shall prevail because it supersedes the rest

Briones VS CA 2015
Filed a case in the place where he resides not in the venues stipulation in the contract, he denied his signature in the contract (with
venue stipulation) alleging that his signature therein is forged. He followed the venue on personal action. Defendant bank argued that
plaintiff must follow the venue stipulation. SC ruled that the effect of non-compliance of venue stipulation in the contract if you are
not a party to the contract (signature has been forged) because you are disowning the contract itself.

Araneta VS CA (Irene Marcos Case)

Resident of Makati filed a case in Ilocos to enforce the terms of a trust agreement where he is named beneficiary.
Defendant filed a motion to dismiss (improper venue) it was granted by the court
While the motion for reconsideration was pending what her lawyer did was to amend the complaint to include three more plaintiffs
who reside in Ilocos. SC ruled that it is not the numbers but who is the principal plaintiff. In the case the Principal plaintiff is Irene
Marcos-Araneta because ultimately she is only the beneficiary the rest were only nominees. The action instituted in Ilocos is dismissed
due to improper venue.

Contracts entered into:

1. Warehousing contract with X – with exclusive venue stipulation (no cause of action present)
2. Catering service contract with X – no venue stipulation (cause of action exist in here)

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Venue stipulation shall only be covered by the respective agreement. The respective controversy shall be governed by their respective
contract agreements (including the venue stipulation). Warehousing contract = warehousing controversy; Catering contract = Catering
services controversy.

PBCOM Case
Loan agreement (main agreement) with promissory note (where the action is based), promissory note has no venue stipulation. There
was a venue stipulation in the loan agreement. SC said the terms of the loan agreement was intertwined with that of the promissory
note and with that reason the venue stipulation in the loan agreement will apply to the promissory note.

SUMMARY PROCEDURE

Take note money claims 200K and below may be filed in summary procedure and small claims.
What should be followed? It is at the option of who will be filing but take note that in filing with Small Claims it is much faster.

SEE SAN BEDA CHART FOR DIFFERENCES BETWEEN OCA / SUMM PROC / SMALL CLAIMS
Fairland Knitcraft VS Po 2016
There was no answer to the complaint, can the court render judgment based on what the pleading may warrant? YES
Defendant argues that there must be preponderance of evidence. SC ruled that preponderance in evidence is not required at that
point in time. The provision of the law expressly requires that if you do not file an answer the court can already render a judgment.
Preponderance of evidence will only matter if there is submission of judicial affidavits and position paper and exhibits have been
marked at that point. But in the case there is no answer thus it did not reach the point of submission of judicial affidavits and position
paper.

Republic VS Sanvar Realty

Motion to dismiss is a prohibited pleading is summary procedure but they insisted that the ground is lack of jurisdiction. The motion
to dismiss was denied so the defendant filed a petition for certiorari. Following the rule on summary procedure and even the rule in
small claims a petition for certiorari is a prohibited pleading. CA denied the petition. The SC affirmed the CA but discussed certain
exceptions:
A petition for certiorari as a rule is a prohibited pleading but there were certain instances as in the case of Go and Bayug where the
court entertained a petition for certiorari: 1. Defendant was sick of tuberculosis that’s why he was not able to file an answer and after
a judgment was rendered against him (Go case), 2. The proceedings in summary procedure was suspended indefinitely (judge refused
to set the case for preliminary conference and proceed with the case) and therefore the party had no recourse but to file a petition
for certiorari (Bayug case).

RULE 6 KINDS OF PLEADING

Note: Set Rules – 6, 7, 8

Negative defense – it is different from specific denial in R8S10

R8S10 enumerates the kinds of specific denial:
1. Specific denial of the fact/allegation asserted
2. Specific denial but admission of the rest of the allegation (Qualified denial)
3. Lack of information to form a belief as to the truth thereof (Disavowal of knowledge)(weakest type of denial)
On the third kind the law and jurisprudence dictates that if it is within your knowledge and competence you should
deny it specifically or admit it if you know. Otherwise if the third kind is used arbitrarily (“Hindi ko ho alam eh”) it
will amount to an admission. (Ex. Claims for Moral, Exemplary, Attorney’s fees damages you can use the third type)

Negative defense in relation to Specific denial:

PBCom VS Spouses Go – two loans evidenced by two promissory notes, loan was payable for 10 years secured by a pledge agreement
covering shares of stocks in Ever Gotesco Holdings. Two years later shares plunged less than .40 per share (collateral shares no longer
viable). PBCom as pledgee notified Go in writing renouncing the pledge agreement it alleged that spouses defaulted on two promissory
notes having paid only 3 installments (Sept, Nov, Dec 1999) an action for recovery of sum of money was instituted. PBCom theorized
that the entire obligation was due and demandable. Go spouses in an answer with counterclaim stated that 1. The promissory note

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referred to in the complaint expressly stated that the promissory note is payable for a period of 10 years therefore its due date is in
2009 and not in 2001 as claimed by PBCom. Further, in conditional obligation the acquisition of rights as well as extinguishment shall
be dependent on the happening of the event. 2. That contrary to the plaintiff’s claim defendant had made substantial payment of
monthly payments, while demand is necessary to consider defendant in default such is not been complied by the plaintiff.

PBCom later filed a motion for summary judgment based on the answer.
What is a summary judgment – R35 that there is no genuine issue as to a material fact. May be moved by the plaintiff or defendant

SC went on to discuss R8S10 it said that there were special affirmative defenses raised by the defendant and because there is such
and there were issues as to the term and demandability the court said there was no need for a summary judgment. Since the summary
judgment is denied the case should proceed to trial.

What is the general policy of the court when it comes to summary judgment if you are confronted with these questions in the bar
exams? For as long as there is an issue of fact the court will not render a summary judgment, the court will push the case to trial.

Affirmative defense – though hypothetically admitting the material allegations of the complaint it would nevertheless prevent and bar
recovery. (Ex. Admits that there is an existing loan, promissory note, due date, demand letter [though hypothetically admitting the
cause of action]; But the loan has been paid/ Prescription/ Fraud [Affirmative defense]) But if everything is admitted in the absence of
affirmative defenses plaintiff may move for judgment on the pleadings under R34.

Judgment of the pleadings – the answer does not tender an issue (did not dispute anything or otherwise admitted the material
allegations of the complaint)

Can there be a partial judgment on the pleadings? NO. it is always a full judgment on the pleadings and only the plaintiff or claimant
can file it.

COUNTERCLAIMS

Compulsory counterclaim – same nature as the principal claim and within the coverage or jurisdiction of the court and would arise/
offshoot of the same transaction. Therefore if you separate this there will be undue duplication of cases (Multiplicity of suits). And
because it is compulsory and natural consequence or offshoot of the main action do you need a certificate on non-forum shopping?
NO (Ex. Counterclaim for moral, exemplary, actual losses, attorney’s fees by reason of the suit – as a result of the necessary
consequence for filing the complaint); Do you need to pay filing fees? NO

Permissive counterclaim – do you need a certificate on non-forum shopping? YES because it is a separate action; do you need to pay
filing fees? YES

Can a counterclaim exceed the jurisdiction of the court? Ex. MTC with a counterclaim for 5M? NO, it should be within the jurisdiction
with the court. It is in the RTC where a counterclaim amount has no limit.

In the MTC if the counterclaim amount exceeds the jurisdiction the excess amount is considered as waived. In the RTC there is no limit
to the amount.

How does the death of a defendant during a pending case affect the setting up of a compulsory or a permissive counterclaim? In
compulsory counterclaim under R9S2 if you failed to timely raise it it is barred. In the first place the death of a party does not affect
the case. If the defendant dies after the answer has been filed it is barred, REMEDY: under R11S10 you can amend it if it was
inadvertently omitted. If the defendant died before the filing of an answer the responsibility to file counterclaim passes on to the legal
representative.

Permissive counterclaim, is not something that is waived or barred because if by chance it is not included in the answer you just file a
SEPARATE COMPLAINT.

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Counterclaim cannot stand without an answer, you do not need a leave of court for a compulsory counterclaim but you have to timely
raise it otherwise it is barred
Permissive counterclaim under the law does not cover waiver because it could stand alone for as long as it is within the prescriptive
period kahit separate action yan eh.

Pinga Case 2006

What happens to the counterclaim if the principal action has been dismissed?
If the main case has been dismissed for whatever reason the counterclaim will survive and will have to stand on its own merits.
Where will I prosecute it? You will have to manifest it within the period of 15 days that you intend to prosecute it in the same action.
Otherwise you will have to prosecute it on a separate action.
The case of Pinga does not make a distinction as against a compulsory and permissive counterclaim.
In permissive counterclaim you should have been required to pay filing fees at the outset.
In compulsory counterclaim there is an impact if you don’t prosecute it in the same action. While there is no filing fee for a compulsory
counterclaim if you fail to manifest within 15 days from the dismissal of the principal action, you are not prevented from filing a
separate action but this time since it is considered as an intiatory pleading you have to pay filing fees.

Counterclaim does NOT need leave of court.

CROSS-CLAIM
Do you need leave of court in cross-claim? NO
And a cross claim should be made against a co-party to whom the court has acquired jurisdiction
There is no cross-claim if there is no co-plaintiff or co-defendant

THIRD PARTY COMPLAINT

Do you need to file an answer to a counterclaim? YES within 10 days R11
Do you need to file an answer to a cross-claime? YES within 10 days
Do you need to file an answer to a 3rd party company? YES within 15 days because it is treated just like any other complaint

Do you need leave of court? YES

The person you are bringing in to the case is someone that the court has not yet acquired jurisdiction
For contribution, subrogation, indemnity, other relief under the law (Third party plaintiff VS Third party defendant)

REPLY
Not a mandatory pleading
The purpose of reply is to meet the new matters raised in an answer and there are usually the affirmative defenses
If you decide not to file a reply the new matters are deemed as controverted (disputed)

What if there was an actionable document attached in the answer, do you need to file a reply? YES in order to meet the answerable
document. If it is not true/ forged you have to specifically deny it under oath otherwise it is deemed admitted (judicial admission)

STRATEGIC LAWSUIT AGAINST PUBLIC PARTICIPATION (SLAPP)

It is a legal action filed to harass, vex, exert undue pressure against any person, institution or the government to prevent enforcement
of environmental laws.
It is a defense that can be raised in environmental cases. Before the court shall proceed it shall ascertain if indeed it is a SLAPP. If it
was a SLAPP the case can be dismissed. It is a form of an affirmative defense in environmental cases.

ALLEGATIONS
Can allegations be stricken off? YES if it is only for purposes of delay, scandalous, indecent, impertinent or immaterial.

COUNTERCLAIM BY A THIRD PARTY DEFENDANT

Can a counterclaim by a third party defendant be also against the principal plaintiff? YES that counterclaim can attack the main
action/claim of the principal plaintiff

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RULE 7

Most important:
1. Signature
2. Verification
3. Certificate on non-forum shopping (CNFS)

Non-submission of the CNFS is different from actual forum shopping

SIGNATURE
If there is a counsel of record that lawyer will have to sign the pleading. When the lawyer signs he attests to the fact that he has read
the same and that is true and correct based on his knowledge, information and belief and it is not interposed for the purposes of
delay.

What happens when you file an unsigned pleading? It produces no legal effect
However you can explain to the court by reason of inadvertence with good reason, the court may in the reasonable exercise of its
discretion may consider the pleading as filed.

What you make scandalous, indecent allegations? The lawyer may be held administratively liable
What if the lawyer changes his address without informing the court? The lawyer may be held administratively liable

VERIFICATION
Is verification and certification the same? NO
Is the requirement of verification jurisdictional? NO. Jurisprudence has consistently said that a verification could be corrected by an
amendment.

What should a verification contain?

Fuji Television VS Espiritu (discussed the difference between verification and certification)
Verification – an affidavit under oath or an attestation under oath that the party has read the pleading or the initiatory pleading and
the contents of which are true and correct based on his personal knowledge or authentic documents on record. As a rule only the
party should sign the verification because only he has personal knowledge of the case, if it is a juridical entity an officer of the
corporation shall attest to the fact that he has authentic documents on record.

Should all pleadings be verified? NO. Only if the law requires it to be verified
Should an ordinary complaint be verified? NO

Exceptions to the rule on who is to sign the CNFS

Olarte Case – not all persons who have interest over the family home signed? OK
Godoy VS Gudalquever – not all co-owners signed? OK
DAR VS Legasto – only one spouse only signed? OK

It is noteworthy that in all the above cases the court applied the rule on substantial compliance because of commonality of interest of
all parties with respect to the subject of the controversy. There being common interest a signature of a handful was accepted by the
court by reason of substantial compliance.

In all of these instances they have what you call common interest but are only exceptions not the prevailing rule.

Juaban Case citing Cua VS Vargas

The general rule is that the CNFS must be signed by all plaintiffs or petitioners in a cases and the signature of only one of them is
insufficient. Thus when all the petitioners share a common interest or invoke a common cause of action in certain instances we
recognize that the absence of some will not result to a dismissal of the case.

GENERAL RULE: all will have to sign

However in some instances if there is commonality of interest a signature of one of them will be accepted by the court

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Can a lawyer sign for the client? General rule NO but YES when there is an executed special power of attorney.

Certification against forum shopping – is a peculiar personal representation on the part of the principal party. An assurance given to
the court or the tribunal that there are no pending cases involving basically the same parties, issues and causes and action.

Can a SPA take the place of a secretary’s certificate? Fuji Television VS Arlin questioned the SPA given by an officer of the company to
someone else, can you do that? YES (more of an exception not the rule)(for practicality)

CERTIFICATE
Certification under oath should be appended to, annexed and filed simultaneously with the complaint.
What is the effect the absence of certificate? Dismissal of the case without prejudice (can be refiled)
Amendment cannot cure the defect. Refiling equates to repayment of filing fees.

There is a certificate appended to and filed simultaneous with and it is false, what is the effect? Dismissal of the case with prejudice
(barred from refiling) and can be held liable for indirect contempt without prejudice to criminal or administrative cases (perjury).

Non-compliance for certification – (that I commit to update the court of the status thereof…)

Wilful and deliberate forum shopping – the case will be summarily dismissed with prejudice and can be held liable for direct contempt

Ong VS CA
There is a distinction between prohibition against forum shopping and the certification requirement it is too elementary not to be
understood. Compliance with the certification against non-forum shopping is separate from and independent of the avoidance of the
act of forum shopping itself. There is a difference in the treatment between failure to comply with the certification requirement and
violation of the prohibition against forum shopping not only in terms of imposable sanction but also in the manner of enforcing the
same.

What is forum shopping?

Test of forum shopping: litis pendencia and res judicata

Cruz VS Caraos
1. Identity of parties or at least such parties as would represent the same interest in both actions
2. Identity of rights ascertained and relief prayed for the relief being founded on the same facts
3. Identity of the two proceeding particulars such that any judgment in one action regardless of which party is successful amounts to
res judicata

SC ruled that the dismissal of the case is without prejudice indeed the order dismissing the first case was an unqualified dismissal.
More significantly its dismissal was not based on paragraph F, H, I of R16S1. The case can be refiled.

PTA St. Matthew Academy VS Metrobank

Should a petition for issuance of Writ of possession contain a CNFS? NO
SC said because though it was captioned as a petition for issuance of writ of possession in truth is it is just a motion it is not an action,
it does seek a relief, it does not enforce a right or seek protection of a right. It is for all intents and purposes seeking for possession of
the property. Therefore a CNFS is not required.

JUDICIAL NOTICE
Can the court take judicial notice of cases falling in another court?
As a rule a court cannot take judicial notice of cases pending in another court.

Can the judge take judicial notice of cases falling on the judge’s own court (own sala)?
Republic VS Sandiganbayan – the general rule is NO unless the parties consent.

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The intent of the rule is to prevent judges from muddling cases before them

Can the court take judicial notice of published decisions of the SC? YES, it is a mandatory judicial notice. These are official acts of the
judiciary (SC)

The SC had to explain, they said there is what you call effect of judgment R39S7 (b) Res Judicata (c) Conclusiveness of judgment
(preclusion of issue). Both is a bar but Res judicata is a bar of further litigating involving the same matter that has already been passed
by the court but preclusion of issue is only a bar in litigating an issue that has previously resolved in another case.

So can the court can take judicial notice of an RTC decision? The SC now says YES (kahit RTC lang). You could apply preclusion of issue
because there are certain matters that have not yet been resolved in this other case. So the preclusion of issue concept can apply. The
SC further stated, besides you have heavily discussed this case in this pending proceeding you cannot just disclaim the existence of
the case.

Referral to a case is not prohibited if it is final and executory. What is actually prohibited is referral of two pending cases (not final and
executory). But when it is a decision of the SC there is no problem.

G-Holdings Case
A labor case – SC said to reiterate again the transfer of shares is just to repeat it therefore the same having been passed upon by the
SC the court takes judicial notice.

2 points to remember
1. If it is a final judgment of the SC any court can take judicial notice
2. If it is a final judgment by a lower court the court could take judicial notice. General rule: you cannot take judicial notice of cases
pending in another court even in the judge’s own sala, except: if the parties consent.

FORUM SHOPPING
Can a lawyer be authorized by a juridical entity through a board resolution to sign CNFS?
Shangrila VS Developer Group of Companies – CNFS may be signed for or in behalf of a corporation by a specifically authorized lawyer
who has knowledge of the facts required to be disclosed, does not require any consular certification if the petitioner is a foreign entity.

Note: Rules on evidence that documents will have to be authenticated, if it is duly notarized by a foreign lawyer you don’t need to
have it consularized, that is a long standing rule. You should only have it consularized according to Rule 119.
Consularization – It goes to a consular office (ribbon authentication), that is only necessary for acts of sovereign authority in a foreign
country and presented in Philippine courts. Ex. The law of a foreign country – hindi natin alam yun dito, if you don’t present it in court
the court will assume that the law in the foreign country is the same as in the PH. So you should secure a copy of the law and have
that authenticated by the consular office.

Will there be application of forum shopping in disbarment cases? NO

Resort to a provisional relief in court in terms of arbitration cases? NO as a fundamental point the SC said the pendency of an arbitral
proceeding does not foreclose resort to the courts for provisional relief. Your resort to a provisional relief in the event of a pending
arbitration case is not forum shopping.

ACTIONABLE DOCUMENTS R8S7, 8

Is the attachment in the complaint considered as a judicial admission? The mere attachment does not make it a judicial admission it
will only amount to a judicial admission when the defendant fails to specifically deny under oath the actionable document.

Note: if a document is not specifically denied under oath you don’t need to authenticate it anymore.
Note: the judicial admission is only limited to its genuiness and due execution.

Equitable card network VS Capistrano 2012 (Unusual case)

There was no specific denial under oath there were only special and affirmative defenses.

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The SC pitied the petitioner, while there was a general denial that the document was not signed by her and it was not her signature,
there were still special and affirmative defenses that she raised that will show that there should be no recovery.
The special and affirmative defenses were treated as a specific denial.

How specific denial of actionable document is done: refer to the particular paragraph where it was raised and say the existence and
due execution is specifically denied. Plus it should be under oath, you prepare a verification at the bottom of the answer. Failing to do
so it is considered as admitted.

How do you allege an actionable document?

1. State the substance in the body of the complaint and attach a COPY or an original – usually an original is not attached for practicality.
2. By reproducing in the body of the complaint the copy of the document (reproduce in toto the text of the document). You don’t
need to attach a copy or original.

Permanent Savings VS Velarde

The answer shows that respondent did not specifically denied that he signed the loan documents what he merely stated in his answer
was that the signature appearing at the back of the promissory note “seems to be his”(parang akin eh). WON the allegation in the
answer was sufficient as specific denial. The respondent also denied liability on the promissory note as allegedly he did not receive
the amount. Further he stated that it did not reflect the true intent of the parties (kung ano-ano ang allegation niya). The SC said
respondent reiterated these allegations in his denial under oath but the denial did not constitute an EFFECTIVE SPECIFIC DENIAL. In
the early case of Sonco VS Selmer the court expounded on how to deny the genuiness and due execution of an actionable document:
1. The defendant must declare under oath that he did not sign the document
2. That the document is false
3. That the document is fabricated

Allegation of misleading or misrepresentation that lead to affixing the signature is not a proper way to specifically deny. But you can
impugn the document as to the validity of consent but this not affect the due execution of the document.

As respondent’s answer shows that he failed to specifically deny under oath the genuiness and due execution of the promissory note
and its documents amount to an admission.

Camtin Case
A denial is not specific simply because it is qualified as specific, a general denial does not become specific by the use of the word
“specifically”. When the matters of whether the defendant alleges having no knowledge or information to form a belief are plainly
and necessary within the defendant’s knowledge, his alleged ignorance or lack of information will not be considered as a specific
denial. His feigning ignorance will not amount to specific denial.

When a party makes specific denial of a material allegation without setting forth the substance of the matters relied upon to support
its denial, when such matters are plainly within its knowledge and the defendant could not logically pretend ignorance said defendant
fails to properly tender an issue.

MISTAKE AND FRAUD R8

Will have to be alleged with particularity, a general averment is not enough. The details of the mistake/ defraudment must be outlined.
However, malice, intent, knowledge or other conditions of the mind a general averment would suffice.

Do you need to state that if you receive a decision the court acted within its competent jurisdiction? NO a general averment that a
decision has been rendered by the court will suffice this should be read in relation to disputable presumptions under R131. If the court
renders a decision the court is presumed to have acted within its competent jurisdiction.

KINDS OF DEFAULT

1. Default under Rule 9

When there is failure to file a responsive pleading or an answer and there was a motion to declare a party in default that is default
under R9

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2. General Default
Happens in a situation where the is no specific defendant (usually present in actions in rem)
Ex. Petition for registration of land – notice of hearing was published, opportunity to interested parties will be given time to appear in
court. If they fail to appear in court within the time or date designated they have deemed to have waived their appearance and they
will be declared to be in general default. Petitioner will move to declare interested persons in general default hence no one can come
forward to oppose anymore.

3. “As in” default R18

This is during pre-trial and the defendant is absent, the plaintiff will be allowed to present evidence ex-parte.

DEFAULT R9
Does it mean that if the defendant did not file an answer the defendant should automatically be declared in default? NO
1. The defendant did not file a responsive pleading within the reglementary period
2. There must be a proof of such failure (delay may be an effect of registered mail, kalaban hindi malalamang nag-file ka).

Can the court render a judgment when the defendant is in default? YES based on what the pleading may warrant or the judge may
order ex-parte presentation of evidence

What is the remedy when defendant is declared in default? Motion to lift the order of default
Should it be under oath? YES on the ground of Fraud/ Accident/ Mistake/ Excusable Neglect

What do you mean by Fraud? Extrinsic fraud – a fraud which prevented a party from participating in the proceedings
Accident? Vehicular accident
Mistake? Not a mistake of law should be mistake of fact
Is erroneous counting of reglementary period a mistake? NO
What is mistake? Ex. Filed in the wrong court, was lost in the mail
What is neglect? Must be excusable neglect but not gross neglect

Everything must have meritorious defense

Effect of denial under oath – person who denied the allegation may be charged with perjury if the denial is frivolous.

What is a partial default? Happens when there are multiple parties (Multiple defendants, some but not all filed an answer)
Those which did not file an answer may be declared in default
Can the answering defendant be allowed to present evidence ex-parte? NO because there are answering defendants and the
answering defendants is allowed by the rules to present evidence and whatever they present that could be appreciated by the court
for the non-answering defendants.

Note: Presentation of evidence ex-parte does not apply if there is an answering defendant

Is there default in annulment, nullity or legal separation cases? NONE

In such an instances what happens to your case when there is no answer filed by the defendant? The matter will be referred to a
prosecutor if collusion exist. If there is no collusion the records will be forwarded back to the court for pre-trial subject to the
certification that there was no collusion.

What is your remedy in the event of judgment by default (iba yung order of default)?
You were previously declared in default, you did not file a motion to lift the order of default, you were just given notices of the
pleadings. Not having participated the court rendered a judgment.
Lina VS CA (cited in the case of Cerezo VS Tuazon)
The remedies are as follows:
1. Within the reglementary period you can file an appeal
2. Within the reglementary period you can file a motion for new trial
3. If the judgment is already final and executory you can file a petition for relief from judgment

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4. If there are good reasons you can file annulment of judgment (not cited in the case)
5. If there was grave abuse of discretion amounting to lack or excess of jurisdiction you can do Rule 65

“AS IN”DEFAULT R18

Rule 18 does not identify remedies
What is the remedy? It is found in jurisprudence

Saguid VS CA 2003
1. You can file a motion for reconsideration on the ground of Fraud, Accident, Mistake, Excusable neglect. Note that you don’t have
to state meritorious defense because having reached pre-trial obviously you already have an answer.

ABSENCE DURING TRIAL

Monson VS Relova Case

Can the absence in the hearing be a basis of default? NO
SC said it is even worse when the court issues an order not denominated as an order of default but provides for the application of
effects of default such amount to the circumvention of the rigid requirements of a default order. In the case at bar petitioner had not
failed to file her answer neither was notice sent to petitioner that she would be defaulted or that the effects of default shall be imposed
upon her. Mere non-appearance of defendants at an ordinary hearing and to adduce evidence does not constitute default when they
have already filed their answer within the reglementary period.

Does this mean that defendants can get away with failing to attend hearings despite due notice? NO
We agree with the petitioner that such failure to attend when committed during hearing dates for the presentation of the
complainant’s evidence would amount of her waiver to object and to cross-examine. However, it would not amount to a waiver of
defendant’s right to present evidence during trial.

Note: Under the Judicial Affidavit Rule (JAR) if the defendant is absent, it is the plaintiff’s time to present evidence and there is already
a Judicial Affidavit submitted in court the non-appearing defendant through counsel waives his right to cross-examine.

What if the defendant is absent on the date scheduled for the presentation of defendant’s evidence? The defendant may waive his
right to present evidence because of the repeated absence.

Note: Kapag absent ka sa hearing you cannot be declared in default, sumagot kana kasi sa answer

RULE 10 AMENDMENT

Turner/ Swagman Case

Can you amend the complaint when at the outset it has no cause of action? You cannot amend just to put a cause of action when at
the outset there is no cause of action.

Lisam Enterprises
What if there is a cause of action but you will substantially alter the cause of action? YES (take note of leave of court)
Ex. Injunction suit amendment to specific performance; recovery of title amend to cancellation of deeds of sale

Before the filing of an answer a complaint may be amended as a matter of right. However once there was already an answer
amendment is by leave of court.

Valenzuela Case
Under the old rules there was this phrase “as long as the cause of action was not substantially altered” that was the phrase that was
dropped. In effect, in the absence of that phrase it now recognized that you could amend a complaint or a pleading even if it
substantially alters the cause of action and that is left to the sound discretion of the court. (To avoid multiplicity of suits, delays in the
proceedings, etc.)

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In amendment you have to take consider 4 points

1. Amendment as a matter of right
2. Amendment with leave of court (Amendment as a matter of discretion)
3. Typographical or clerical amendments (Formal Amendments) – Note: that this kind of amendment can be effected by the court
motu proprio, it could also be amended upon motion of a party.
4. Amendment to conform with the evidence – Note: this provision covers two scenarios
a.) that the other party does not object
b.) the other party objects

In amendment to conform to evidence you will just have to remember this:

1. For every factual proposition it will have to be supported by evidence, see R128S1
2. R8S1 – every pleading should make a plain and concise statement of ultimate facts devoid of evidentiary matters

Why do we have to expound this? Because there are times that there is a VARIANCE from that which was alleged and that which was
proven in situations like that R10S5 will come into play (Para maipagtagpo mo ang ebidensiyang napatunayan mo at yung inallege
mo).

What if the other party does not object? The amendment to conform to evidence can even be effected after judgment.
What if the other party objects? In which case on WON to allow amendment to conform to evidence will be left to the discretion of
the court.

Amendment to conform to evidence results to a valid judgment. For the purposes of appeal when the records are elevated to the next
level court there shall be uniformity on that which was alleged and that which was proven so it will be easier for the reviewing authority
on appeal to see the evidence and the factual propositions. Note that the pleadings need not require literal amendments.

DEAN JARA suddenly asks this question: Does amendment to conform to evidence apply to Criminal Cases? 

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