MATHAY V. CONSOLIDATED BANK & TRUST CO.

58 SCRA 559

Facts:

The complaint filed contained 6 causes of action. The first cause of action consisted of: 1) the rights
of appellants as well as of the other CMI stockholders to subscribe in proportion to their equities
established under their respective “Pre-Incorporated Agreements to Subscribe”, to that portion of the
capital stock which was unsubscribed because of failure of the CMI stockholders to exercise their right
to subscribe thereto; 2)the legal duty of the appellant to have said portion of the capital stock to be
subscribed by appellants and other CMI stockholders; and 3) the violation or breach of said right of
appellants and other CMI stockholders by the appellees. Defendants-appelles filed a motion to dismiss
on the ground that the complaint stated no cause of action. The trial granted the motion to dismiss on
the ground that the class suit could not be maintained because of the absence of a showing in the
complaint that the plaintiffs-appellants were sufficiently numerous and representative, and that the
complaint failed to state a cause of action.

Issue: Whether or not the complaint stated a cause of action?

Held:

A class suit does not require a commonality of interest in the questions involved in the suit. What
is required by the Rules is a common or general interest in the subject matter of the litigation. The
“subject matter” of the litigation meant the physical, the things real or personal, the money, lands,
chattels, and the like, in relation to the suit which is prosecuted and not the delict or wrong committed
by the defendant.

It having been shown that the complaint failed to state ultimate facts to constitute a cause of
action, it becomes unnecessary to discuss the other assignments of errors.