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Under Sec.

4 of the same Rule, if two or more suits are instituted on the basis of the
[9] PROGRESSIVE DEVELOPMENT CORPORATION v QUEZON CITY
same 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 other or others.

GR No. 123555| January 22, 1999 | Cause of Action| Pineda These premises obtaining, there is no question at all that private respondent's cause
of action in the forcible entry case and in the suit for damages IS THE ALLEGED
Petitioner: PROGRESSIVE DEVELOPMENT CORPORATION ILLEGAL RETAKING OF POSSESSION OF THE LEASED PREMISES BY
Respondents: COURT OF APPEALS and WESTIN SEAFOOD MARKET, INC. THE LESSOR, PETITIONER HEREIN, FROM WHICH ALL LEGAL reliefs
arise.

Not only are the elements of res adjudicata present, at least insofar as the claim for
Recit-Ready: Petitioner leased to private, respondent Westin Seafood Market, Inc., a actual and compensatory damages is concerned, but also that the claim for damages —
parcel of land with a commercial building thereon located at Araneta Center, Cubao, moral and exemplary in addition to actual and compensatory — constitutes splitting a
Quezon City, for a period of nine (9) years and three (3) months. Private respondent single cause of action.
failed to pay rentals despite several demands by petitioner. As of 19 October 1992 the
arrearages amounted to P8,608,284.66. Doctrine: When a single delict or wrong is committed — like the unlawful taking or
Petitioner on 31 October 1992 repossessed the leased premises, inventoried the detention of the property of the another — there is but one single cause of action
movable properties found within and owned by private respondent and scheduled regardless of the number of rights that may have been violated, and all such rights
public auction for the sale of the movables on 19 August 1993 with notice to private should be alleged in a single complaint as constituting one single cause of action.
respondent.
.
At the continuation of the hearing on the issuance of a writ preliminary mandatory
injunction, the parties agreed, among others, on the following: (a) private respondent
would deposit with the Philippine Commercial and Industrial Bank in the name of the
Metropolitan Trial Court, Branch 36, the amount of P8,000,000.00 to guarantee the Facts:
payment of its back rentals among others. 1. On 27 May 1991 petitioner leased to private, respondent Westin Seafood
Market, Inc., a parcel of land with a commercial building thereon located
Private respondent did not comply with its undertaking to deposit with the at Araneta Center, Cubao, Quezon City, for a period of nine (9) years and
designated bank the amount representing its back rentals. Instead, with the three (3) months, i.e., from 2 January 1989 to 30 April 1998, with a monhtly
forcible entry case still pending with the MeTC, private respondent instituted on 9 rental of approximately P600,000.00.
June 1993 another action for damages against petitioner with the Regional Trial
Court of Quezon City
2. The contract contained the following pertinent terms and conditions:
Issue: Whether or Not the action for damages filed with the Regional Trial Court by the
lessee against the lessor should be dismissed on the ground of pendency of another EFFECT OF VIOLATIONS
action for forcible entry and damages earlier filed by the same lessee against the same
lessor before the Metropolitan Trial Court. (YES)
Ratio: ….. LESSOR is likewise hereby expressly authorized and
empowered by LESSEE to dispose of said property/properties in
a public sale through a Notary Public of LESSOR's choice and to
Under Sec. 3 of Rule 2 of the Revised Rules of Court, as amended, that a party may apply the proceeds thereof to whatever liability and/or
not institute more than one suit for a single cause of action. indebtedness LESSEE may have to LESSOR plus reasonable
expenses for the same, including storage fees, and the balance, if
any, shall be turned over to LESSEE; that LESSEE hereby
expressly agrees that any or all acts performed by LESSOR, his
authorized agents, employees and/or representatives under the
provisions of this Section may not be the subject of any petition for a Issues: Whether or Not the action for damages filed with the Regional Trial Court by
Writ of Preliminary Injunction or Mandatory Injunction in court, and the lessee against the lessor should be dismissed on the ground of pendency of another
that LESSOR and/or his authorized agents, employees, and/or action for forcible entry and damages earlier filed by the same lessee against the same
representatives shall be free from any civil and/or criminal liability or lessor before the Metropolitan Trial Court. (YES)
responsibility whatsoever therefor….
Ratio:
TERMINATION OF LEASE
1. "Cause of action" is defined by Sec. 2 of Rule 2 as the act of omission by
Upon-the automatic termination of this lease contract, as the case may which a party violates a right of another.
be, LESSEE shall immediately vacate and redeliver physical
possession of the leased premises, including the keys appertaining 2. Sec. 1 of Rule 70 of the Rules of Court provides that any person deprived
thereto, to LESSOR in good, clean and sanitary condition, reasonable of the possession of any land or building by force, indimidation, threat,
wear and tear excepted, devoid of all occupants,. equipment, furnitures strategy or stealth, or against whom thepossession of any land or building is
articles, merchandise, etc., belonging to LESSEE or to any other unlawfully withheld, may bring an action in the proper Municipal Trial Court
person except those belonging to LESSOR; that should LESSEE fail against the person or persons unlawfully withholding or depriving of
to comply with this provision, LESSOR is hereby given the same rights
possession, together with damages and costs.
and power to proceed against LESSEE as expressly granted in the
immediately; preceding section.
a. All cases for forcible entry or unlawful detainer shall be filed
before the Municipal Trial Court which shall include not only the
3. Private respondent failed to pay rentals despite several demands by petitioner. plea for restoration of possession but also all claims for damages
As of 19 October 1992 the arrearages amounted to P8,608,284.66. and costs arising therefrom. Otherwise expressed, no claim for
a. Petitioner on 31 October 1992 repossessed the leased premises, damages arising out of forcible entry or unlawful detainer may be
inventoried the movable properties found within and owned by filed separately and independently of the claim for restoration of
private respondent and scheduled public auction for the sale of the possession.
movables on 19 August 1993 with notice to private respondent.
3. This is consistent with the principle laid down in Sec. 1, par. (e), of Rule 16
of the Rules of Court which states that the pendency of another action
4. On 26 November 1992 private respondent filed with the Metropolitan Trial
between the same parties for the same cause is a ground for dismissal of an
Court of Quezon City a complaint against petitioner for forcible entry with
action. (RES ADJUDICATA)
damages and a prayer for a temporary restraining order and/or writ of
preliminary injunction.
4. Under Sec. 3 of Rule 2 of the Revised Rules of Court, as amended, that a
party may not institute more than one suit for a single cause of action.
5. At the continuation of the hearing on the issuance of a writ preliminary
mandatory injunction, the parties agreed, among others, on the following: (a)
5. Under Sec. 4 of the same Rule, if two or more suits are instituted on the
private respondent would deposit with the Philippine Commercial and
basis of the same cause of action, the filing of one or a judgment upon
Industrial Bank in the name of the Metropolitan Trial Court, Branch 36, the
the merits in any one is available as a ground for the dismissal of the
amount of P8,000,000.00 to guarantee the payment of its back rentals among
other or others.
others.
6. These premises obtaining, there is no question at all that private
respondent's cause of action in the forcible entry case and in the suit for
6. Private respondent did not comply with its undertaking to deposit with the damages IS THE ALLEGED ILLEGAL RETAKING OF POSSESSION
designated bank the amount representing its back rentals. Instead, with OF THE LEASED PREMISES BY THE LESSOR, PETITIONER
the forcible entry case still pending with the MeTC, private respondent HEREIN, FROM WHICH ALL LEGAL reliefs arise. Simply stated, the
instituted on 9 June 1993 another action for damages against petitioner restoration of possession and demand for actual damages in the case before
with the Regional Trial Court of Quezon City. The case was raffled to Branch the MeTC and the demand for damages with the RTC both arise from the
101 presided over by Judge Pedro T. Santiago. same cause of action, i.e., the forcible entry by petitioner into the least
premises.
13. In a forcible entry case, the real issue is the physical possession of the real
7. A comparative study of the two (2) complaints filed by private respondent property. The question of damages is merely secondary or incidental, so
against petitioner before the two (2) trial courts shows that not only are the much so that the amount thereof does not affect the jurisdiction of the court.
elements of res adjudicata present, at least insofar as the claim for actual
and compensatory damages is concerned, but also that the claim for damages
— moral and exemplary in addition to actual and compensatory — - In other words, the unlawful act of a deforciant in taking possession of a
constitutes splitting a single cause of action. piece of land by means of force and intimidation against the rights of the
party actually in possession thereof is a delict or wrong, or a cause of
8. Since this runs counter to the rule against multiplicity of suits, the dismissal action that gives rise to two (2) remedies, namely, the recovery of
of the second action becomes imperative. possession and recovery of damages arising from the loss of possession,
but only to one action.

9. Restated in its bare essentials, the forcible entry case has one cause of action, 14. For obvious reasons, both remedies cannot be the subject of two (2) separate
namely, the alleged unlawful entry by petitioner into the leased premises out
and independent actions, one for recovery of posssession only, and the other,
of which three (3) reliefs (denominated by private respondent as is causes of
action) arose: for the recovery of damages. That would inevitably lead to what is termed in
law as splitting up a cause of action.
(a) the restoration by the lessor (petitioner herein) of the possession of the
leased premises to the lessee;

(b) the claim for actual damages due to the losses suffered by private
respondent such as the deterioration of perishable foodstuff stored inside the
premises and the deprivation of the use of the premises causing loss of
expected profits; and,

(c) the claim for attoney's fees and cost of suit.

10. On the other hand, the complaint for damages prays for a monetary award
consisting of (a) moral damages of P500,000.00 and exemplary damages of
another P500,000.00; (b) actual damages of P20,000,000.00 and
compensatory damages of P1,000,000.00 representing unrealized profits;
and, (c) P200,000.00 for attorney's fees and costs, all based on the alleged
forcible takeover of the leased premises by petitioner.

11. Since actual and compensatory damages were already prayed for in the
forcible entry case before the MeTC, it is obvious that this cannot be
relitigated in the damage suit before the RTC by reason of res adjudicata.

12. When a single delict or wrong is committed — like the unlawful taking or
detention of the property of the another — there is but one single cause of
action regardless of the number of rights that may have been violated, and
all such rights should be alleged in a single complaint as constituting one
single cause of action.

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