Sustiguer v. Tamayo, 176 SCRA 579, 590.

August 21, 1989 FACTS : The City Government of Bacolod acquired 42 lots which were converted into a subdivision known as Bacolod City RFC Subdivision for sale to qualified occu!ants" #nder $rdinance %o" &4' there shall be only one (&) buyer or awardee for a sublot" The adverse !ossessors of *ot %o" +,'-B-+4 were invited to the $ffice of the City .ayor for a determination of who the awardee shall be and the $ffice of the .ayor awarded the lot in question to /sabel 0!osa1a as follows2 3/n connection with the award of *ot %o" +,'-B-+4 it is a1reed between 45/T6 S#ST/G#4R and /S0B4* 07$S0G0 that the award of the said lot be 1iven to /S0B4* and that a down !ayment of twenty !ercent (289) of the total cost of the lot shall be made on or before %ovember &: &';8" Failure to make the down !ayment on said date the City of Bacolod will be free to dis!ose or award the lot to any of the a!!licants" 0!osa1a went to the Secretary of the .ayor to make the down !ayment but she was alle1edly advised to come back later as the Secretary was out of towrn" 6avin1 thus failed to make the required down !ayment 0!osa1a was not able to effect the e<ecution of the sale" $n .ay &; &';& the City Government of Bacolod e<ecuted a Contract of Sale on /nstallment over said *ot %o" +,'-B-+4 in favor of one =ose Tamayo" 4dith Susti1uer and /sabel 0!osa1a filed for annulment of the sale on installment and award of said lot a1ainst the Government of Bacolod and =ose Tamayo claimin1 that the latter is neither qualified to a!!ly for the award nor to !urchase the said lot under the !rovisions of $rdinance %o" &4'" 0fter : years /sabel 0!osa1a one of the !arties!laintiffs filed a >.otion to ?ithdraw Civil Case %o" ;:2@ and Confess =ud1ment in Civil Case %o" ,:&2 > declarin1 that she had been !aid for all her claim in said case hence she is no lon1er interested in its !rosecution" The lower court issued an order dismissin1 the com!laint of 4dith Susti1uer for lack of cause of action" ISS !: ?hether Susti1uer is a real !arty-in-interest" "!#$: %$" The lower court dismissed the com!laint after /sabel 0!osa1a a co-!laintiff of Susti1uer withdrew her com!laint thus leavin1 Susti1uer as the remainin1 !arty!laintiff" The dismissal of the com!laint for lack of cause of action was basically !remised on the !rocedural rule set forth under Section 2 of Rule + of the Rules of Court that every action must be !rosecuted and defended in the name of the real !arty-in-interest and that all !ersons havin1 an interest in the subAect of the action and in obtainin1 the relief demanded shall be Aoined as !laintiffs" The real !arty-in-interest is the !arty who stands to be benefited or inAured by the Aud1ment or the !arty entitled to the avails of the suit" >/nterest> within the meanin1 of the rule means material interest an interest in issue and to be affected by the decree as distin1uished from mere interest in the question involved or a mere incidental interest" 0s a 1eneral rule one havin1 no ri1ht or interest to !rotect cannot invoke the Aurisdiction of the court as a !arty-!laintiff in an action" ?hatever !referential ri1ht alle1edly claimed by 4dith Susti1uer or interest in the award of the dis!uted lot is contin1ent u!on the final award to and subsequent e<ecution of a contract of sale in favor of /sabel 0!osa1a by

the City Government of Bacolod u!on com!liance by the former with the requirements of the ordinance" 0!osa1a withdrew her com!laint as she is no lon1er interested in !rosecutin1 her claim over the dis!uted lot" ?hen the withdrawal of her com!laint was allowed by the lower court the mere alle1ation of 4dith Susti1uer that she has a !referential ri1ht to !urchase the dis!uted lot on the basis of the fact that she actually occu!ied the same to1ether with /sabel 0!osa1a does not 1ive rise to a cause of action inde!endent from that which has been withdrawn" 0!!ellant 4dith Susti1uer cannot claim an interest to !rotect over the dis!uted lot as she is not a real !arty-ininterest who would be benefited or inAured by the Aud1ment in the event trial !roceeded in the instant case"