Professional Documents
Culture Documents
CIVIL PROCEDURE
Sun Insurance Office Ltd. v. Hon. Asuncion, G.R. No. 79937-38, February 13, 1989
Benguet Electric Cooperative, Inc. v. NLRC, G.R. No. 89070, May 18, 1992
iv. Service of judgments, final orders or resolutions v. Priorities in modes of service and filing - Sec. 9, Rule
13
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CIVIL PROCEDURE
ordering the re-assessment of the docket fee in the
present case and other cases that were investigated, the
trial court directed plaintiffs to rectify the amended
complaint by stating the amounts which they are asking
for. It was only then that plaintiffs specified the amount
of damages in the body of the complaint in the reduced
amount of P10,000,000.00. Still no amount of damages
was specified in the prayer. Said amended complaint was
admitted.
On the other hand, in the Magaspi case, the trial
court ordered the plaintiffs to pay the amount of
P3,104.00 as filing fee covering the damages alleged in
the original complaint as it did not consider the damages
to be merely ancillary or incidental to the action for
recovery of ownership and possession of real property.
An amended complaint was filed by plaintiff with leave of
court to include the government of the Republic as
defendant and reducing the amount of damages, and
attorneys fees prayed for to P100,000.00. Said amended
complaint was also admitted.
In the Magaspi case, the action was considered
for recovery of ownership and damages, so that the filing
fee for the damages should be the basis of assessment.
Although the payment of the docketing fee of P60.00 was
found to be insufficient, nevertheless, it was held that
since the payment was the result of an "honest difference
of opinion as to the correct amount to be paid as docket
fee" the court "had acquired jurisdiction over the case
and the proceedings thereafter had were proper and
regular." Hence, as the amended complaint superseded
the original complaint, the allegations of damages in the
amended complaint should be the basis of the
computation of the filing fee.
In the present case no such honest difference of
opinion was possible as the allegations of the complaint,
the designation and the prayer show that it is an action
for damages and specific performance. The docketing fee
should be assessed by considering the amount of
damages as alleged in the original complaint.
Issue:
Whether or not the amended complaint should
be admitted. No!
Held:
The rule is well-settled "that a case is deemed
filed only upon payment of the docket fee regardless of
the actual date of filing in court." Thus, in the present
case the trial court did not acquire jurisdiction over the
case by the payment of only P410.00 as docket fee.
Neither can the amendment of the complaint thereby
vest jurisdiction upon the Court. For all legal purposes
there is no such original complaint that was duly filed
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CIVIL PROCEDURE
Payment of docket fees
SUN INSURANCE OFFICE LTD. vs HON. ASUNCION
G.R. No. 79937-38, February 13, 1989
Facts:
Petitioner Sun Insurance Office, Ltd. (SIOL) filed a
complaint with the Regional Trial Court for the
consignation of a premium refund on a fire insurance
policy with a prayer for the judicial declaration of its
nullity against private respondent Manuel Uy Po Tiong.
Private respondent was declared in default for failure to
file the required answer within the reglementary period.
On the other hand, private respondent filed a
complaint in the Regional Trial Court for the refund of
premiums and the issuance of a writ of preliminary
attachment initially against petitioner SIOL, and
thereafter including E.B. Philipps and D.J. Warby as
additional defendants. The complaint sought, among
others, the payment of actual, compensatory, moral,
exemplary and liquidated damages, attorneys fees,
expenses of litigation and costs of the suit. Although the
prayer in the complaint did not quantify the amount of
damages sought said amount may be inferred from the
body of the complaint to be about Fifty Million Pesos
(P50,000,000.00).
Only the amount of P210.00 was paid by private
respondent as docket fee which prompted petitioners
counsel to raise his objection. Said objection was
disregarded by respondent Judge Jose P. Castro who was
then presiding over said case.
Upon the order of the Supreme Court, the
records of said case together with twenty-two other
cases assigned to different branches of the Regional Trial
Court which were under investigation for underassessment of docket fees were transmitted to the
Supreme Court. The Court thereafter returned the said
records to the trial court with the directive that they be
re-raffled to the other judges. The present civil case was
re-raffled to Branch 104, a sala which was then vacant.
The Court en banc issued a Resolution directing
the judges in said cases to reassess the docket fees and
that in case of deficiency, to order its payment. The
Resolution also requires all clerks of court to issue
certificates of re-assessment of docket fees. All litigants
were likewise required to specify in their pleadings the
amount sought to be recovered in their complaints.
Judge Antonio P. Solano, to whose sala the
present case was temporarily assigned, issued an order to
the Clerk of Court instructing him to issue a certificate of
assessment of the docket fee paid by private respondent
and, in case of deficiency, to include the same in said
certificate.
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CIVIL PROCEDURE
Held:
During the pendency of this petition and in
conformity with the said judgment of respondent court,
private respondent paid the additional docket fee of
P62,432.90 on April 28, 1988.
The main thrust of the petition is that the Court
of Appeals erred in not finding that the lower court did
not acquire jurisdiction over Civil Case No. Q-41177 on
the ground of non-payment of the correct and proper
docket fee. Petitioners allege that while it may be true
that private respondent had paid the amount of
P182,824.90 as docket fee as herein-above related, and
considering that the total amount sought to be recovered
in the amended and supplemental complaint is
P64,601,623.70 the docket fee that should be paid by
private respondent is P257,810.49, more or less. Not
having paid the same, petitioners contend that the
complaint should be dismissed and all incidents arising
therefrom should be annulled. In support of their theory,
petitioner cite the latest ruling of the Court in
Manchester Development Corporation v. CA, 4 as follows:
"The Court acquires jurisdiction over any case only upon
the payment of the prescribed docket fee. An
amendment of the complaint or similar pleading will not
thereby vest jurisdiction in the Court, much less the
payment of the docket fee based on the amounts sought
in the amended pleading. The ruling in the Magaspi Case
in so far it is inconsistent with this pronouncement is
overturned and reversed."
On the other hand, private respondent claims
that the ruling in Manchester cannot apply retroactively
to the present civil case for at the time said civil case was
filed in court there was no such Manchester ruling as yet.
Further, private respondent avers that what is applicable
is the ruling of this Court in Magaspi v. Ramolete, 5
wherein the SC held that the trial court acquired
jurisdiction over the case even if the docket fee paid was
insufficient. The contention that Manchester cannot
apply retroactively to this case is untenable. Statutes
regulating the procedure of the courts will be construed
as applicable to actions pending and undetermined at the
time of their passage. Procedural laws are retrospective
in that sense and to that extent.
The payment of the full amount of the docket
fee is an indispensable step for the perfection of an
appeal.
The docket fee must be paid before a court will
act on a petition or complaint. However, said rule is not
applicable when petitioner seeks the probate of several
wills of the same decedent as he is not required to file a
separate action for each will but instead he may have
other wills probated in the same special proceeding then
pending before the same court.
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CIVIL PROCEDURE
promulgation of the decision in Manchester must have
had that sobering influence on private respondent who
thus paid the additional docket fee as ordered by the
respondent court. It triggered his change for stance by
manifesting his willingness to pay such additional docket
fee as may be ordered.
Nevertheless, petitioners contend that the
docket fee that was paid is still insufficient considering
the total amount of the claim. This is a matter which the
clerk of court of the lower court and/or his duly
authorized docket clerk or clerk in-charge should
determine and, thereafter, it any amount is found due, he
must require the private respondent to pay the same.
Thus, the Court rules as follows:
1. It is not simply the filing of the complaint or
appropriate initiatory pleading, but the
payment of the prescribed docket fee, that
vests a trial court with jurisdiction over the
subject matter or nature of the action.
Where the filing of the initiatory pleading is
not accompanied by payment of the docket
fee, the court may allow payment of the fee
within a reasonable time but in no case
beyond the applicable prescriptive or
reglementary period.
2. The same rule applies to permissive
counterclaims, third-party claims and similar
pleadings, which shall not be considered
filed until and unless the filing fee
prescribed therefor is paid. The court may
also allow payment of said fee within a
reasonable time but also in no case beyond
its applicable prescriptive or reglementary
period.
3. Where the trial court acquires jurisdiction
over a claim by the filing of the appropriate
pleading and payment of the prescribed
filing fee but, subsequently, the judgment
awards a claim not specified in the pleading,
or if specified the same has been left for
determination by the court, the additional
filing fee therefor shall constitute a lien on
the judgment. It shall be the responsibility of
the Clerk of Court or his duly authorized
deputy to enforce said lien and assess and
collect the additional fee.
The petition is DISMISSED. The Clerk of Court of
the court a quo is hereby instructed to reassess and
determine the additional filing fee that should be paid by
private respondent considering the total amount of the
claim sought in the original complaint and the
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CIVIL PROCEDURE
however, could not explain the reduction in Ballatan's
area since he was not present at the time respondents Go
constructed their boundary walls.
Engineer Quedding made a third relocation
survey upon request of the parties. He found that Lot No.
24 lost approximately 25 square meters on its eastern
boundary that Lot No. 25, although found to have
encroached on Lot No. 24, did not lose nor gain any area;
that Lot No. 26 lost some three (3) square meters which,
however, were gained by Lot No. 27 on its western
boundary. In short, Lots Nos. 25, 26 and 27 moved
westward to the eastern boundary of Lot No. 24.
On the basis of this survey, petitioner Ballatan
made a written demand on respondents Go to remove
and dismantle their improvements on Lot No. 24.
Respondents Go refused. The parties including Li Ching
Yao, however, met several times to reach an agreement
one matter.
Failing to agree amicably, petitioner Ballatan
brought the issue before the barangay. Respondents Go
did not appear. Thus, petitioner Ballatan instituted
against respondents Go a civil case for recovery of
possession before the Regional Trial Court, Malabon. The
Go's filed their "Answer with Third-Party Complaint"
impleading as third-party defendants respondents Li
Ching Yao, the AIA and Engineer Quedding.
The trial court decided in favor of petitioners. It
ordered the Go's to vacate the subject portion of Lot No.
24, demolish their improvements and pay petitioner
Ballatan actual damages, attorney's fees and the costs of
the suit. It dismissed the third-party complaint.
The Court of Appeals modified the decision of
the trial court. It affirmed the dismissal of the third-party
complaint against the AIA but reinstated the complaint
against Li Ching Yao and Jose Quedding. It ordered
respondents Go to pay petitioner Ballatan instead of
demolishing the improvements, and respondent Li Ching
Yao to pay respondents Go, a reasonable amount for that
portion of the lot which they encroached, the value to be
fixed at the time of taking.
Petitioners question the admission by
respondent Court of Appeals of the third-party complaint
by respondents Go against the AIA, Jose Quedding and Li
Ching Yao. Petitioners claim that the third-party
complaint should not have been considered by the Court
of Appeals for lack of jurisdiction due to third-party
plaintiffs' failure to pay the docket and filing fees before
the trial court.
Issue:
Whether or not a third party complaint should
be accompanied by payment of the docket fees.
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CIVIL PROCEDURE
Payment of docket fees
RIVERA vs DEL ROSARIO
G.R. No. 144934, January 15, 2004
Facts:
Respondents Fidela (now deceased), Oscar,
Rosita, Violeta, Enrique Jr., Carlos, Juanito and Eloisa, all
surnamed Del Rosario, were the registered owners of Lot
No. 1083-C, a parcel of land situated at Lolomboy,
Bulacan.
Oscar, Rosita, Violeta, Enrique Jr., Juanito, and
Eloisa, executed a Special Power of Attorney in favor of
their mother and co-respondent, Fidela, authorizing her
to sell, lease, mortgage, transfer and convey their rights
over Lot No. 1083-C. Subsequently, Fidela borrowed
P250,000 from Mariano Rivera in the early part of 1987.
To secure the loan, she and Mariano Rivera agreed to
execute a deed of real estate mortgage and an agreement
to sell the land.
The Kasunduan (Agreement to Sell) provided
that the children of Mariano Rivera, herein petitioners
Adelfa, Cynthia and Jose, would purchase Lot No. 1083-C
for a consideration of P2,141,622.50. This purchase price
was to be paid in three installments: P250,000 upon the
signing of the Kasunduan, P750,000, and P1,141,622.50.
It also provided that the Deed of Absolute Sale would be
executed only after the second installment is paid and a
postdated check for the last installment is deposited with
Fidela. As previously stated, however, Mariano had
already caused the drafting of the Deed of Absolute Sale.
But unlike the Kasunduan, the said deed stipulated a
purchase price of only P601,160, and covered a certain
Lot No. 1083-A in addition to Lot No. 1083-C. This deed,
as well as the Kasunduan and the Deed of Real Estate
Mortgage, was signed by Marianos children, petitioners
Adelfa, Cynthia and Jose, as buyers and mortgagees.
Although Fidela intended to sign only the
Kasunduan and the Real Estate Mortgage, she
inadvertently affixed her signature on all the three
documents in the office of Atty. Barangan (Mariano
lawyer). Mariano then gave Fidela the amount of
P250,000. He also gave Fidela a check for P200,000. In the
ensuing months, also, Mariano gave Oscar del Rosario
several amounts totaling P67,800 upon the latters
demand for the payment of the balance despite Oscars
lack of authority to receive payments under the
Kasunduan. While Mariano was making payments to
Oscar, Fidela entrusted the owners copy of TCT No. T50.668 (M) to Mariano to guarantee compliance with the
Kasunduan.
When Mariano unreasonably refused to return
the TCT, one of the respondents, Carlos del Rosario,
caused the annotation on TCT No. T-50.668 (M) of an
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CIVIL PROCEDURE
was validly entered into by both parties. According to
petitioners, Fidela del Rosario mortgaged Lot No. 1083-C
to their predecessor in interest, Mariano Rivera, on
March 9, 1987. But on the following day Fidela decided to
sell the lot to petitioners for P2,161,622.50. When
Mariano agreed (on the condition that Lot No. 1083-C will
be delivered free from all liens and encumbrances), the
Kasunduan was consequently drawn up and signed. After
that, however, Fidela informed Mariano of the existence
of Feliciano Nietos tenancy right over the lot to the
extent of 9,000 sq. m. When Mariano continued to want
the land, albeit on a much lower price of only P601,160,
as he had still to deal with Feliciano Nieto, the parties
drafted the Deed of Absolute Sale on March 10, 1987, to
supersede the Kasunduan.
After trial, the RTC ruled in favor of respondents.
The trial court ruled that Fidelas signature in the Deed of
Absolute Sale was genuine, but found that Fidela never
intended to sign the said deed. Noting the peculiar
differences between the Kasunduan and the Deed of
Absolute Sale, the trial court concluded that the Riveras
were guilty of fraud in securing the execution of the deed
and its registration in the Registry of Deeds. It rescinded
the Kasunduan but ruled that the P450,000 paid by
petitioners be retained by respondents as payment for
the 4,500 sq. m. portion of Lot No. 1083-C that
petitioners gave to Nieto.
The Court of Appeals, the trial courts judgment
was modified. The Deed of Absolute Sale dated March 10,
1987 is declared null and void only insofar as Lot No.
1083-C is concerned, but valid insofar as it conveyed Lot
No. 1083-A, that TCT No. 158443 (M) is valid insofar as
Lot No. 1083-A is concerned and should not be annulled,
and increasing the amount to be paid by the defendantsappellants to the plaintiffs-appellees for the 4,500 square
meters of land given to Feliciano Nieto.
Issue:
Whether or not the trial court acquire
jurisdiction over the case, despite an alleged deficiency in
the amount of filing fees paid by respondents.
Held:
Petitioners contend that jurisdiction was not
validly acquired because the filing fees respondents paid
was only P1,554.45 when the relief sought was
reconveyance of land that was worth P2,141,622.50
under the Kasunduan. They contend that respondents
should have paid filing fees amounting to P12,183.70.
Respondents counter that it is beyond dispute
that they paid the correct amount of docket fees when
they filed the complaint. If the assessment was
inadequate, they could not be faulted because the clerk
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CIVIL PROCEDURE
On June 4, 1998, the RTC rendered a Decision
ordering the petitioners to vacate the property and to
surrender possession thereof to respondents. they filed a
Notice of Appeal with the RTC. It was approved on July 7,
1998.
Court of Appeals dismissed the appeal of
petitioners for their failure to pay the appellate court
docket fee.
Petitioners filed a motion for reconsideration but
it was denied by the Appellate Court.
Issue:
Whether the Court of Appeals correctly
dismissed the petition for failure of the petitioners to pay
appellate court docket fee.
Held:
Prior to the effectivity of the 1997 Rules of Civil
Procedure, as amended, payment of appellate court
docket fee is not a prerequisite for the perfection of an
appeal.
However, the 1997 Rules of Civil Procedure, as
amended, which took effect on July 1, 1997, now require
that appellate docket and other lawful fees must be paid
within the same period for taking an appeal. This is clear
from the opening sentence of Section 4, Rule 41 of the
same Rules that, (W)ithin the period for taking an
appeal, the appellant shall pay to the clerk of the court
which rendered the judgment or final order appealed
from, the full amount of the appellate court docket and
other lawful fees.
Petitioner contends that the trial court must first
send them a notice to pay the appellate court docket fee
and other lawful fees within the period for taking an
appeal. Hence, they waited for the notice for them to pay
the appellate court docket fee. When they did not receive
any, they paid the docket fee to the trial court. It is lack of
merit.
Also under Rule 41 of the same Rules, an appeal
to the Court of Appeals from a case decided by the RTC in
the exercise of the latters original jurisdiction, shall be
taken within fifteen (15) days from the notice of
judgment or final order appealed from. Such appeal is
made by filing a notice thereof with the court that
rendered the judgment or final order and by serving a
copy of that notice upon the adverse party. Furthermore,
within this same period, appellant shall pay to the clerk of
court which rendered the judgment or final order
appealed from, the full amount of the appellate court
docket and other lawful fees. The payment of docket fee
within this period is mandatory for the perfection of
appeal. Otherwise, the appellate court would not be able
to act on the subject matter of the action, and the
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CIVIL PROCEDURE
an Order denying the motion, stating that there was no
need to send the notice to counsel, since in appeals from
the Justice of the Peace Courts, no summons is necessary
in order that defendant may have to file Answer, and that
the notice of receipt of appealed case may be either sent
to the attorney or the party.
This Order is now before Us on appeal,
defendants claiming that it was error on the part of the
lower court to consider that notice to them was
sufficient.
Issue:
Whether there was an error on the part of the
lower court to consider the notice to them was sufficient.
Held:
CIVIL PROCEDURE
Facts:
PHHC filed an action for Recovery of Possession
before the CFI of Rizal, QC Branch. The appellant
interposed the Special Defense of Priority of Right to
purchase, and ability to pay, as found by no less that the
investigators of PHHC. The case was then scheduled for
hearing, however, Atty. Tanega, failed to notify the
appellants, and in their absence, PHHC introduced
evidence showing ownership of the property.
A judgment was rendered against the appellants,
ordering them to vacate the property, remove their
houses and other improvements thereon, to pay the sum
of P26.70 per month from date of occupation until the
restoration of the property to PHHC, and to pay
attorneys fee plus costs.
The judgment was received by their counsel,
Atty. Tanega BUT did not inform them, neither did he
take steps to protect the interests of his clients, by
presenting a motion for reconsideration or file a petition
to set aside judgment.
Appellants only came to know about the adverse
judgment when the sheriff of the court served them a
copy of writ of execution ordering them to vacate the
premises. They lost no time to contact Atty. Tanega, but
to no avail. They engaged the services of a new counsel,
Atty. Sayson, who filed before the CFI a Petition for Relief
from Judgment with affidavits of merit. The judge cited
Atty. Tanega to appear before him because of the
seriousness of the charges. He admitted to the court that
he did not informed his clients because it just escaped his
attention for he had so may ejectment cases at that time.
PHHC opposed the said petition contending that
it was filed out of time (receipt of decision: March 7, 1961
/ filing: May 9, 1961).
The court issued an order denying the aforesaid
petition holding that it was filed beyond the reglementary
period of 60 days, and that the mistake or negligence of
an attorney is binding upon his client.
Hence, the present appeal
Issue:
Whether or not the petition for relief from
judgment was filed within the reglementary period
Held:
YES. Viewed from the strictly legal perspective, it
appears that the petition was presented outside the
reglementary period of sixty (60) days from notice of the
judgment. Nevertheless due to the very peculiar
circumstances obtaining in the premises, We consider
that the rule was substantially complied with and the
petition for relief from judgment was seasonably filed.
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CONFORMABLY WITH THE FOREGOING, the
order of the lower court dated July 17, 1961, is hereby set
aside and another entered, remanding the case to the
court of origin for further proceedings, and thereafter to
render judgment accordingly. With costs against appellee
PHHC, in both instances
CIVIL PROCEDURE
appeal was posted by registered mail on 3 May 1988 and
received by the NLRC the following day. Clearly, the
memorandum on appeal was filed out of time.
Respondent Board members, however, insist
that their Memorandum on Appeal was filed on time
because it was delivered for mailing on 1 May 1988 to the
Garcia Communications Company, a licensed private
letter carrier. The Board members in effect contend that
the date of delivery to Garcia Communications was the
date of filing of their appeal memorandum.
Respondent Board member's contention runs
counter to the established rule that transmission through
a private carrier or letter-forwarder instead of the
Philippine Post Office is not a recognized mode of filing
pleadings. The established rule is that the date of delivery
of pleadings to a private letter-forwarding agency is not
to be considered as the date of filing thereof in court, and
that in such cases, the date of actual receipt by the court,
and not the date of delivery to the private carrier, is
deemed the date of filing of that pleading.
There, was, therefore, no reason grounded upon
substantial justice and the prevention of serious
miscarriage of justice that might have justified the NLRC
in disregarding the ten-day reglementary period for
perfection of an appeal by the respondent Board
members.
Accordingly, the applicable rule was that the
ten-day reglementary period to perfect an appeal is
mandatory and jurisdictional in nature, that failure to file
an appeal within the reglementary period renders the
assailed decision final and executory and no longer
subject to review. The respondent Board members had
thus lost their right to appeal from the decision of the
Labor Arbiter and the NLRC should have forthwith
dismissed their appeal memorandum.
Issue:
Whether or not NLRC had acted with grave
abuse of discretion in accepting and giving due course to
respondent Board members' appeal although such appeal
had been filed out of time.
Held:
We consider that petitioner's first contention is
meritorious. There is no dispute about the fact that the
respondent Beneco Board members received the decision
of the labor Arbiter on 21 April 1988. Accordingly, and
because 1 May 1988 was a legal holiday, they had only up
to 2 May 1988 within which to perfect their appeal by
filing their memorandum on appeal. It is also not disputed
that the respondent Board members' memorandum on
CIVIL PROCEDURE
November 23, 1979, is not disputed. It is likewise not
disputed that said wife has been receiving prior notices
of the case for her husband at the office of the latter,
who had always acted as if he had received said notices
himself for he had duly complied therewith. With these
facts, no other ruling can be had but that the service of
the decision in question is valid and binding. It is fully
being in accordance with Rule 13, Section 4, on personal
service, said wife being of sufficient discretion to receive
notice of final judgment.
It is already well settled rule that when a party is
represented by counsel, notice should be made upon the
counsel of record at his given address, to which notices of
all kind emanating from the court should be sent in the
absence of a proper and adequate notice to the court of a
change of address.
Petitioner's argument, likewise, fails to consider
the need of observing a legal formality before a counsel
of record may be considered relieved of his responsibility
as such counsel on account of withdrawal. This legal
formality is that a lawyer's withdrawal as counsel must be
made in a formal petition filed in the case, without which,
notice of judgment rendered in the case served on the
counsel of record, is, for all legal purposes notice to the
client, the date of receipt of which is considered the
starting point from which the period of appeal prescribed
by law shall begin to run. Not having withdrawn formally
as counsel in the case, Atty. Romeo Gonzaga continued to
be the counsel of record and was, for all legal purpose,
private respondents' attorney upon whom the court's
processes may be served, as they were in fact duly
served.
WHEREFORE, the writ of certiorari is granted and
the questioned Order of respondent judge is hereby
annulled and set aside. The writ of prohibition is likewise
granted and respondent judge or whoever would be
appointed to the appropriate branch of the Regional Trial
Court, prohibited from acting in any wise or form except
to order execution of the subject decision. The temporary
restraining order heretofore issued is hereby made
permanent. Costs against private respondents.
Issue:
Whether or not the service is not valid. (Private
respondents argue that said service is not valid because
Atty. Gonzaga had left Cebu City, his address of record,
and has resided in Legaspi City.)
Held:
No. It is valid. The court found the petition to
be meritorious. That the decision of the trial court was
received by the wife of Atty. Romeo Gonzaga, private
respondents' counsel of record at his given address on
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remanded to the lower court. Copies of the entry of
judgment were mailed to the lawyers of the parties.
Pershing L. Mendez, Feraren's counsel, filed a
manifestation (motion) wherein he prayed for the recall
of the entry of judgment on the ground that his motion
for reconsideration had not yet been resolved; hence, the
judgment "could not become final and executory".
CA denied the motion for the recall of the entry
of judgment because, as already stated, the motion for
reconsideration had already been resolved.
Mendez filed a manifestation (motion) wherein
he prayed that he be allowed to appeal "as a
consequence of the denial of the motion for
reconsideration". He said that he had not received a copy
of the resolution denying his motion for reconsideration.
CA did not grant that prayer. A copy of that resolution
was received by Mendez by registered mail.
More than a month later after a writ of
execution was served on Feraren, he filed in this Court
this petition for certiorari, prohibition and mandamus
wherein he prayed that he be allowed to appeal and that
the lower court be enjoined from executing the judgment
of the Court of Appeals. Lawyer Mendez alleged in that
petition and in his affidavit that in his office at his
residence there was always someone to attend to
correspondence and that he did not leave the city during
the period when the notice of registered mail was
supposedly sent to his law office. His office clerk made a
similar affidavit.
However, the fact remains that the postmaster
certified that although two notices were sent to Mendez's
office, the registered mail in question was not claimed at
the Manila central post office.
Issue:
Whether or not CA gravely abuse its discretion in
not allowing Feraren to appeal to this Court. No.
Whether or not the failure to claim registered
mail of which notice had been duly given by the
postmaster is excusable that would warrant the
reopening of a decided case. No.
Held:
The rule is that if the addressee of registered
mail fails to claim it from the post office within five days
from the date of the first notice of the postmaster,
service becomes effective at the expiration of that fiveday period (Sec. 8, Rule 13, Rules of Court).
Between the denial of a lawyer that he received
the first notice of registered mail and the postmaster's
certification that said notice was sent, the postmaster's
claim should be believed because it is his official duty to
send notices of registered mail. The presumption is that
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CA- ordered the issuance of the entry of
judgment.MR of petitioner was denied. Hence, the
present petition.
Issue:
Whether or not there was proper service of
notice
Held:
Yes. It is well-settled that when a party is
represented by counsel, notice should be made upon the
counsel of record at his given address to which notices of
all kinds emanating from the court should be sent in the
absence of a proper and adequate notice to the court of a
change of address.
In this case, the records show that the notice
and copy of the decision of respondent Court of Appeals
were sent to petitioners's counsel of record Atty. Sison at
his given mailing address which is 33 B.M.A. Avenue,
Tatalon, Quezon City. The first notice to him by the
Postmaster to claim his mail was on July 9, 1981. The rule
is that service of notice becomes effective at the
expiration of the five-day period upon failure of the
addresse to claim his mail within five (5) days from the
date of first notice
Therefore in this case the service became
effective five days after July 9, 1981 which is July 14,
1981. The decision became final on August 13, 1981. If
Atty. Sison moved to another address without informing
the respondent of his change of address the omission or
neglect will not stay the finality of the decision. The
notice sent to petitioners themselves, under the
circumstances is not even necessary. It may be stated
though that while petitioners claim that Teofilo Magno to
whom the notice to the petitioners was addressed is
already dead, it is not explained why their present
petition before this Court still includes the name Teofilo
Magno. There is no indication in the record that he has
been duly substituted by his legal representative.
The decision in this case having become final on
July 29, 1981, there being no appeal taken therefrom,
respondent court committed no error ordering the
issuance of the corresponding entry of judgment.
meikimouse
CIVIL PROCEDURE
According to the rules, Attorney Briones is
deemed to have received the copy of the auto which he
declined to accept from the mails. That order was
sufficient to advise him of the rejection of his previous
motion of dismissal, supposing he had not actually
received the copy of the order which had been forwarded
to him by ordinary mail.
The appellant insist here that "the record fails to
show a conclusive evidence that Atty. Jorge C. Briones . . .
was notified". This is refuted by the above account of the
facts and of the governing principles. It is remarkable
that, to meet the conclusions therein set forth, defendant
has not introduced any sworn statement of Attorney
Briones.
Unless the appellant has filed a motion to set
aside the order of default, on any of the grounds
enumerated in Rule 38, he has no standing in court nor
the right to appeal. Examining appellant's motion we
observe that he merely requested for the annulment of
the decision rendered after his default without praying
for the revocation of the order of May 10, 1947 declaring
him to be default. But granting, for the sake of argument
that the aforesaid pleading impliedly included the second
prayer, we are met by the insuperable objection that the
petition was too late. Because filed beyond the six-month
period within which applications for relief under Rule 38
may be entertained. From May 10 to December 9 seven
months had elapsed.
CIVIL PROCEDURE
personal service or filing. All or any of these acts ought to
have been sufficient cause for its outright denial.
meikimouse
CIVIL PROCEDURE
meikimouse
GANCAYCO, J.:
Acting on the motion for reconsideration of the resolution of
the Second Division of January 28,1987 and another motion to
refer the case to and to be heard in oral argument by the
Court En Banc filed by petitioners, the motion to refer the case
to the Court en banc is granted but the motion to set the case
for oral argument is denied.
Petitioners in support of their contention that the filing fee
must be assessed on the basis of the amended complaint cite
the case of Magaspi vs. Ramolete. 1 They contend that the
Court of Appeals erred in that the filing fee should be levied by
considering the amount of damages sought in the original
complaint.
The environmental facts of said case differ from the present in
that
1. The Magaspi case was an action for recovery of ownership
2
and possession of a parcel of land with damages. While the
present case is an action for torts and damages and specific
3
performance with prayer for temporary restraining order, etc.
2. In the Magaspi case, the prayer in the complaint seeks not
only the annulment of title of the defendant to the property,
the declaration of ownership and delivery of possession thereof
to plaintiffs but also asks for the payment of actual moral,
exemplary damages and attorney's fees arising therefrom in the
4
amounts specified therein. However, in the present case, the
prayer is for the issuance of a writ of preliminary prohibitory
injunction during the pendency of the action against the
defendants' announced forfeiture of the sum of P3 Million paid
by the plaintiffs for the property in question, to attach such
property of defendants that maybe sufficient to satisfy any
judgment that maybe rendered, and after hearing, to order
defendants to execute a contract of purchase and sale of the
subject property and annul defendants' illegal forfeiture of the
money of plaintiff, ordering defendants jointly and severally to
pay plaintiff actual, compensatory and exemplary damages as
well as 25% of said amounts as maybe proved during the trial as
attorney's fees and declaring the tender of payment of the
purchase price of plaintiff valid and producing the effect of
payment and to make the injunction permanent. The amount of
damages sought is not specified in the prayer although the body
of the complaint alleges the total amount of over P78 Million as
5
damages suffered by plaintiff.
CIVIL PROCEDURE
3. Upon the filing of the complaint there was an honest
difference of opinion as to the nature of the action in the
Magaspi case. The complaint was considered as primarily an
action for recovery of ownership and possession of a parcel of
land. The damages stated were treated as merely to the main
cause of action. Thus, the docket fee of only P60.00 and P10.00
6
for the sheriff's fee were paid.
In the present case there can be no such honest difference of
opinion. As maybe gleaned from the allegations of the
complaint as well as the designation thereof, it is both an action
for damages and specific performance. The docket fee paid
upon filing of complaint in the amount only of P410.00 by
considering the action to be merely one for specific
performance where the amount involved is not capable of
pecuniary estimation is obviously erroneous. Although the total
amount of damages sought is not stated in the prayer of the
complaint yet it is spelled out in the body of the complaint
totalling in the amount of P78,750,000.00 which should be the
basis of assessment of the filing fee.
4. When this under-re assessment of the filing fee in this case
was brought to the attention of this Court together with similar
other cases an investigation was immediately ordered by the
Court. Meanwhile plaintiff through another counsel with leave
of court filed an amended complaint on September 12, 1985 for
the inclusion of Philips Wire and Cable Corporation as coplaintiff and by emanating any mention of the amount of
damages in the body of the complaint. The prayer in the original
complaint was maintained. After this Court issued an order on
October 15, 1985 ordering the re- assessment of the docket fee
in the present case and other cases that were investigated, on
November 12, 1985 the trial court directed plaintiffs to rectify
the amended complaint by stating the amounts which they are
asking for. It was only then that plaintiffs specified the amount
of damages in the body of the complaint in the reduced amount
7
of P10,000,000.00. Still no amount of damages were specified
in the prayer. Said amended complaint was admitted.
On the other hand, in the Magaspi case, the trial court ordered
the plaintiffs to pay the amount of P3,104.00 as filing fee
covering the damages alleged in the original complaint as it did
not consider the damages to be merely an or incidental to the
action for recovery of ownership and possession of real
8
property. An amended complaint was filed by plaintiff with
leave of court to include the government of the Republic as
defendant and reducing the amount of damages, and attorney's
fees prayed for to P100,000.00. Said amended complaint was
9
also admitted.
In the Magaspi case, the action was considered not only one for
recovery of ownership but also for damages, so that the filing
fee for the damages should be the basis of assessment.
Although the payment of the docketing fee of P60.00 was found
to be insufficient, nevertheless, it was held that since the
payment was the result of an "honest difference of opinion as
to the correct amount to be paid as docket fee" the court "had
acquired jurisdiction over the case and the proceedings
thereafter had were proper and regular." 10 Hence, as the
amended complaint superseded the original complaint, the
allegations of damages in the amended complaint should be the
basis of the computation of the filing fee. 11
In the present case no such honest difference of opinion was
possible as the allegations of the complaint, the designation and
the prayer show clearly that it is an action for damages and
meikimouse
CIVIL PROCEDURE
SO ORDERED.
meikimouse
GANCAYCO, J.:
Again the Court is asked to resolve the issue of whether or not a
court acquires jurisdiction over a case when the correct and
proper docket fee has not been paid.
On February 28, 1984, petitioner Sun Insurance Office, Ltd.
(SIOL for brevity) filed a complaint with the Regional Trial Court
of Makati, Metro Manila for the consignation of a premium
refund on a fire insurance policy with a prayer for the judicial
declaration of its nullity against private respondent Manuel Uy
Po Tiong. Private respondent as declared in default for failure to
file the required answer within the reglementary period.
On the other hand, on March 28, 1984, private respondent filed
a complaint in the Regional Trial Court of Quezon City for the
refund of premiums and the issuance of a writ of preliminary
attachment which was docketed as Civil Case No. Q-41177,
initially against petitioner SIOL, and thereafter including E.B.
Philipps and D.J. Warby as additional defendants. The complaint
sought, among others, the payment of actual, compensatory,
moral, exemplary and liquidated damages, attorney's fees,
expenses of litigation and costs of the suit. Although the prayer
in the complaint did not quantify the amount of damages
sought said amount may be inferred from the body of the
complaint to be about Fifty Million Pesos (P50,000,000.00).
Only the amount of P210.00 was paid by private respondent as
docket fee which prompted petitioners' counsel to raise his
objection. Said objection was disregarded by respondent Judge
Jose P. Castro who was then presiding over said case. Upon the
order of this Court, the records of said case together with
twenty-two other cases assigned to different branches of the
Regional Trial Court of Quezon City which were under
investigation for under-assessment of docket fees were
transmitted to this Court. The Court thereafter returned the
said records to the trial court with the directive that they be reraffled to the other judges in Quezon City, to the exclusion of
Judge Castro. Civil Case No. Q-41177 was re-raffled to Branch
104, a sala which was then vacant.
On October 15, 1985, the Court en banc issued a Resolution in
Administrative Case No. 85-10-8752-RTC directing the judges in
said cases to reassess the docket fees and that in case of
deficiency, to order its payment. The Resolution also requires all
clerks of court to issue certificates of re-assessment of docket
fees. All litigants were likewise required to specify in their
pleadings the amount sought to be recovered in their
complaints.
CIVIL PROCEDURE
On December 16, 1985, Judge Antonio P. Solano, to whose sala
Civil Case No. Q-41177 was temporarily assigned, issuedan
order to the Clerk of Court instructing him to issue a certificate
of assessment of the docket fee paid by private respondent and,
in case of deficiency, to include the same in said certificate.
On January 7, 1984, to forestall a default, a cautionary answer
was filed by petitioners. On August 30,1984, an amended
complaint was filed by private respondent including the two
additional defendants aforestated.
Judge Maximiano C. Asuncion, to whom Civil Case No. Q41177
was thereafter assigned, after his assumption into office on
January 16, 1986, issued a Supplemental Order requiring the
parties in the case to comment on the Clerk of Court's letterreport signifying her difficulty in complying with the Resolution
of this Court of October 15, 1985 since the pleadings filed by
private respondent did not indicate the exact amount sought to
be recovered. On January 23, 1986, private respondent filed a
"Compliance" and a "Re-Amended Complaint" stating therein a
claim of "not less than Pl0,000,000. 00 as actual compensatory
damages" in the prayer. In the body of the said second
amended complaint however, private respondent alleges actual
and compensatory damages and attorney's fees in the total
amount of about P44,601,623.70.
On January 24, 1986, Judge Asuncion issued another Order
admitting the second amended complaint and stating therein
that the same constituted proper compliance with the
Resolution of this Court and that a copy thereof should be
furnished the Clerk of Court for the reassessment of the docket
fees. The reassessment by the Clerk of Court based on private
respondent's claim of "not less than P10,000,000.00 as actual
and compensatory damages" amounted to P39,786.00 as
docket fee. This was subsequently paid by private respondent.
Petitioners then filed a petition for certiorari with the Court of
Appeals questioning the said order of Judie Asuncion dated
January 24, 1986.
On April 24, 1986, private respondent filed a supplemental
complaint alleging an additional claim of P20,000,000.00 as
d.qmages so the total claim amounts to about P64,601,623.70.
On October 16, 1986, or some seven months after filing the
supplemental complaint, the private respondent paid the
1
additional docket fee of P80,396.00.
On August 13, 1987, the Court of Appeals rendered a decision
ruling, among others, as follows:
WHEREFORE, judgment is hereby rendered:
1. Denying due course to the petition in CAG.R. SP No. 1, 09715 insofar as it seeks
annulment of the order
(a) denying petitioners' motion to dismiss
the complaint, as amended, and
(b) granting the writ of preliminary
attachment, but giving due course to the
portion
thereof
questioning
the
reassessment of the docketing fee, and
requiring the Honorable respondent Court
to reassess the docketing fee to be paid by
meikimouse
In Lazaro vs. Endencia and Andres, this Court held that the
payment of the full amount of the docket fee is an
indispensable step for the perfection of an appeal. In a forcible
entry and detainer case before the justice of the peace court of
Manaoag, Pangasinan, after notice of a judgment dismissing the
case, the plaintiff filed a notice of appeal with said court but he
deposited only P8.00 for the docket fee, instead of P16.00 as
required, within the reglementary period of appeal of five (5)
days after receiving notice of judgment. Plaintiff deposited the
additional P8.00 to complete the amount of the docket fee only
fourteen (14) days later. On the basis of these facts, this court
held that the Court of First Instance did notacquire jurisdiction
to hear and determine the appeal as the appeal was not
thereby perfected.
CIVIL PROCEDURE
8
CIVIL PROCEDURE
trial court. The trial court reiterated its order for the payment of
the additional docket fee which plaintiff assailed and then
challenged before this Court. Plaintiff alleged that he paid the
total docket fee in the amount of P60.00 and that if he has to
pay the additional fee it must be based on the amended
complaint.
However,
as
aforecited,
this
Court
overturned Magaspi in Manchester. Manchester involves
an
action for torts and damages and specific performance with a
prayer for the issuance of a temporary restraining order, etc.
The prayer in said case is for the issuance of a writ of
preliminary prohibitory injunction during the pendency of the
action against the defendants' announced forfeiture of the sum
of P3 Million paid by the plaintiffs for the property in question,
the attachment of such property of defendants that may be
sufficient to satisfy any judgment that may be rendered, and,
after hearing, the issuance of an order requiring defendants to
execute a contract of purchase and sale of the subject property
and annul defendants' illegal forfeiture of the money of
plaintiff. It was also prayed that the defendants be made to pay
the plaintiff jointly and severally, actual, compensatory and
exemplary damages as well as 25% of said amounts as may be
proved during the trial for attorney's fees. The plaintiff also
asked the trial court to declare the tender of payment of the
purchase price of plaintiff valid and sufficient for purposes of
payment, and to make the injunction permanent. The amount
of damages sought is not specified in the prayer although the
body of the complaint alleges the total amount of over P78
Millon allegedly suffered by plaintiff.
Upon the filing of the complaint, the plaintiff paid the amount
of only P410.00 for the docket fee based on the nature of the
action for specific performance where the amount involved is
not capable of pecuniary estimation. However, it was obvious
from the allegations of the complaint as well as its designation
that the action was one for damages and specific performance.
Thus, this court held the plaintiff must be assessed the correct
docket fee computed against the amount of damages of about
P78 Million, although the same was not spelled out in the
prayer of the complaint.
Meanwhile, plaintiff through another counsel, with leave of
court, filed an amended complaint on September 12, 1985 by
the inclusion of another co-plaintiff and eliminating any
mention of the amount of damages in the body of the
complaint. The prayer in the original complaint was maintained.
On October 15, 1985, this Court ordered the re-assessment of
the docket fee in the said case and other cases that were
investigated. On November 12, 1985, the trial court directed
meikimouse
CIVIL PROCEDURE
meikimouse
PUNO, J.:
This is a petition for review on certiorari of the decision of the
Court of Appeals dated March 25, 1996 in CA-G.R. CV No. 32472
entitled "Eden Ballatan., et. al., plaintiffs-appellees v. Gonzalo
Go and Winston Go, appellants and third-party plaintiffs1
appellants v. Li Ching Yao, et. al., third-party defendants."
The instant case arose from a dispute over forty-two (42)
square meters of residential land belonging to petitioners. The
parties herein are owners of adjacent lots located at Block No.
3, Poinsettia Street, Araneta University Village, Malabon, Metro
Manila. Lot No. 24, 414 square meters in area, is registered in
the name of petitioners Eden Ballatan and spouses Betty
2
Martinez and Chong Chy Ling. Lots Nos. 25 and 26, with an
area of 415 and 313 square meters respectively, are registered
3
in the name of respondent Gonzalo Go, Sr. On Lot No. 25,
respondent Winston Go, son of Gonzalo Go, Sr., constructed his
house. Adjacent to Lot No. 26 is Lot No. 27, 417 square meters
in area, and is registered in the name of respondent Li Ching
4
Yao.
In 1985, petitioner Ballatan constructed her house on Lot No.
24. During the construction, she noticed that the concrete fence
and side pathway of the adjoining house of respondent Winston
Go encroached on the entire length of the eastern side of her
5
property. Her building contractor formed her that the area of
her lot was actually less than that described in the title.
Forthwith, Ballatan informed respondent Go of this discrepancy
and his encroachment on her property. Respondent Go,
however, claimed that his house, including its fence and
pathway, were built within the parameters of his father's lot;
and that this lot was surveyed by Engineer Jose Quedding, the
authorized surveyor of the Araneta Institute of Agriculture
(AIA), the owner-developer of the subdivision project.
Petitioner Ballatan called the attention of the IAI to the
discrepancy of the land area in her title and the actual land area
received from them. The AIA authorized another survey of the
land by Engineer Jose N. Quedding.
In a report dated February 28, 1985, Engineer Quedding found
that the lot area of petitioner Ballatan was less by few meters
and that of respondent Li Ching Yao, which was three lots away,
increased by two (2) meters. Engineer Quedding declared that
he made a verification survey of Lots Nos. 25 and 26 of
respondents Go in 1983 and allegedly found the boundaries to
have been in their proper position. He, however, could not
explain the reduction in Ballatan's area since he was not present
6
at the time respondents Go constructed their boundary walls.
On June 2, 1985, Engineer Quedding made a third relocation
survey upon request of the parties. He found that Lot No. 24
lost approximately 25 square meters on its eastern boundary
CIVIL PROCEDURE
that Lot No. 25, although found to have encroached on Lot No.
24, did not lose nor gain any area; that Lot No. 26 lost some
three (3) square meters which, however, were gained by Lot
7
No. 27 on its western boundary. In short, Lots Nos. 25, 26 and
27 moved westward to the eastern boundary of Lot No. 24.
On the basis of this survey, on June 10, 1985, petitioner Ballatan
made a written demand on respondents Go to remove and
dismantle their improvements on Lot No. 24. Respondents Go
refused. The parties including Li Ching Yao, however, met
several times to reach an agreement one matter.
Failing to agree amicably, petitioner Ballatan brought the issue
before the barangay. Respondents Go did not appear. Thus, on
April 1, 1986, petitioner Ballatan instituted against respondents
Go Civil Case No. 772-MN for recovery of possession before the
Regional Trial Court, Malabon, Branch 169. The Go' s filed their
"Answer with Third-Party Complaint" impleading as third-party
defendants respondents Li Ching Yao, the AIA and Engineer
Quedding.
On August 23, 1990, the trial court decided in favor of
petitioners. It ordered the Go's to vacate the subject portion of
Lot No. 24, demolish their improvements and pay petitioner
Ballatan actual damages, attorney's fees and the costs of the
suit. It dismissed the third-party complaint against: (1) AIA after
finding that the lots sold to the parties were in accordance with
the technical description a verification plan covered by their
respective titles; (2) Jose N. Quedding, there being no privity of
relation between him and respondents Go and his erroneous
survey having been made at the instance of AIA, not the parties;
and (3) Li Ching Yao for failure to prove that he committed any
8
wrong in the subject encroachment. The court made the
following disposition:
WHEREFORE, judgment is hereby rendered
in favor of the plaintiffs and against the
defendants, ordering the latter:
1. To demolish and remove all
improvements existing and encroaching on
plaintiff's lot;
2. To clear, vacate and deliver possession of
the encroached area to the plaintiffs;
3. To pay plaintiffs jointly and severally the
following:
a) P7,800.00 for the
expenses paid to the
surveyors;
b)
P5,000.00
plaintiffs'
transportation;
for
meikimouse
CIVIL PROCEDURE
JURISPRUDENCE VESTING BASIC PROPERTY
RIGHTS
TO
HEREIN
PETITIONERS.
RESPONDENT COURT HAS NO POWER TO
APPLY/USE EQUITY IN THE PRESENCE OF
EXISTING LAWS TO THE CONTRARY.
2. UNDER THE GUISE OF APPLYING EQUITY
BUT IN EFFECT A VERY APPARENT
PARTIALITY AND FAVOR TO RESPONDENTS
GO, IT ORDERED PAYMENT OF THE
ENCROACHED AREA AT THE VALUE AT THE
TIME OF ITS TAKING AND NOT THE VALUE
AT THE TIME OF PAYMENT, THEREBY
ENRICHING THE GO'S BUT DEPRIVING
PETITIONERS OF THE FRUITS OR INCREASE
IN VALUE OF THEIR PROPERTY TO WHICH
THEY ARE ENTITLED UNDER THE LAW AS
THE REGISTERED OWNERS WITH TORRENS
TITLE IN THEIR NAMES.
3. WHEN IT DID NOT DISMISS THE THIRDPARTY COMPLAINT DUE TO NON-PAYMENT
OF ANY FILING OR DOCKET FEE.
4. WHEN IT DENIED PETITIONERS THE
RECOVERY OF THE NECESSARY EXPENSES IN
10
PROTECTING THEIR RIGHTS IN THIS CASE.
Petitioners question the admission by respondent Court of
Appeals of the third-party complaint by respondents Go against
the AIA, Jose Quedding and Li Ching Yao. Petitioners claim that
the third-party complaint should not have been considered by
the Court of Appeals for lack of jurisdiction due to third-party
plaintiffs' failure to pay the docket and filing fees before the
trial court.
The third-party complaint in the instant case arose from the
complaint of petitioners against respondents Go. The complaint
filed was for accion publiciana, i.e., the recovery of possession
of real property which is a real action. The rule in this
jurisdiction is that when an action is filed in court, the complaint
must be accompanied the payment of the requisite docket and
11
filing fees. In real actions, the docket and filing fees are based
on the value of the property and the amount of damages
12
claimed, if any If the complaint is filed but the fees are not
paid at the time of filing, the court acquires jurisdiction upon
full payment of the fees within a reasonable time as the court
13
may grant, barring prescription. Where the fees prescribed for
the real action have been paid but the fees of certain related
damages are not, the court, although having jurisdiction over
the real action, may not have acquired jurisdiction over the
14
accompnying claim for damages. Accordingly, the court may
expunge those claims for damages, or allow, on motion, a
reasonable time for amendment of the complaint so as to allege
the precise amount of damages and accept payment of the
15
requisite legal fee. If there are unspecified claims, the
determination of which may arise after the filing of the
complaint or similar pleading, the additional filing fee thereon
16
shall constitute a lien on the judgment award. The same rule
17
also applies to third-party claims and other similar pleadings.
In the case at bar, the third-party complaint filed by
respondents Go was incorporated in their answer to the
complaint. The third-party complaint sought the same remedy
as the principal complaint but added a prayer for attorney's fees
and costs without specifying their amounts, thus:
meikimouse
CIVIL PROCEDURE
Respondent Li Ching Yao built his house on his lot before any of
24
the other parties did. He constructed his house in 1982,
25
respondents Go in 1983, and petitioners in 1985. There is no
evidence, much less, any allegation that respondent Li Ching
Yao was aware that when he built his house he knew that a
portion thereof encroached on respondents Go's adjoining land.
Good faith is always presumed, and upon him who alleges bad
26
faith on the part of a possessor rests the burden of proof.
All the parties are presumed to have acted in good faith. Their
rights must, therefore, be determined in accordance with the
appropriate provisions of the Civil Code on property.
Art. 448 of the Civil Code provides:
Art. 448. The owner of the land on which
anything has been built, sown or planted in
good faith, shall have the right to
appropriate as his own the works, sowing or
planting, after payment of the indemnity
27
provided for in Articles 546 and 548, or to
oblige the one who built or planted to pay
the price of the land, and the one who
sowed the proper rent. However, the
builder or planter cannot be obliged to buy
the land if its value is considerably more
than that of the building or trees. In such
case, he shall pay reasonable rent, if the
owner of the land does not choose to
appropriate the building or trees after
proper indemnity. The parties shall agree
upon the terms of the lease and in case of
disagreement, the court shall fix the terms
thereof.
The owner of the land on which anything has been
built, sown or planted in good faith shall have the
right to appropriate as his own the building, planting
or sowing, after payment to the builder, planter or
sower of the necessary and useful expenses, and in
the proper case, expenses for pure luxury or mere
pleasure. The owner of the land may also oblige the
builder, planter or sower to purchase and pay the
price of the land. If the owner chooses to sell his land,
the builder, planter or sower must purchase the land,
otherwise the owner may remove the improvements
thereon. The builder, planter or sower, however, is
not obliged to purchase the land if its value
considerably more than the building, planting or
sowing. In such case, the builder, planter or sower
must pay rent to the owner of the land. If the parties
cannot come to terms over the conditions of the
lease, the court must fix the terms thereof. The right
to choose between appropriating the improvement or
selling the land on which the improvement stands to
the builder, planter or sower, is given to the owner of
28
the land.
Art. 448 has been applied to improvements or portions of
improvements built by mistaken belief on land belonging to the
29
adjoining owner. The facts of the instant case are similar to
30
those in Cabral v. Ibanez, to wit:
[P]laintiffs Geronima Zabala and her
husband Justino Bernardo, constructed their
house in the belief that it was entirely
meikimouse
32
we held
CIVIL PROCEDURE
house. If petitioners are unwilling or unable
to buy, then they must vacate the land and
must pay rentals until they do so. Of course,
respondents cannot oblige petitioners to
buy the land if its value is considerably more
than that of the aforementioned portion of
the house. If such be the case, then
petitioners must pay reasonable rent. The
parties must come to an agreement as to
the conditions of the lease, and should they
fail to do so, then the court shall fix the
33
same.
In light of these rulings, petitioners, as owners of Lot No. 24,
may choose to purchase the improvement made by
respondents Go on their land, or sell to respondents Go the
subject portion. If buying the improvement is impractical as it
may render the Go's house useless, then petitioners may sell to
respondents Go that portion of Lot No. 24 on which their
improvement stands. If the Go's are unwilling or unable to buy
the lot, then they must vacate the land and, until they vacate,
they must pay rent to petitioners. Petitioners, however, cannot
compel respondents Go to buy the land if its value is
considerably more than the portion of their house constructed
thereon. If the value of the land is much more than the Go's
improvement, the respondents Go must pay reasonable rent. If
they do not agree on the terms of the lease, then they may go
to court to fix the same.
In the event that petitioners elect to sell to respondents Go the
subject portion of their lot, the price must be fixed at the
prevailing market value at the time of payment. The Court of
Appeals erred in fixing the price at the time of taking, which is
the time the improvements were built on the land. The time of
taking is determinative of just compensation in expropriation
proceedings. The instant case is not for expropriation. It is not a
taking by the state of private property for a public purpose
upon payment of just compensation. This is a case of an owner
who has been paying real estate taxes on his land but has been
deprived of the use of a portion of this land for years. It is but
34
fair and just to fix compensation at the time of payment.
Art. 448 and the same conditions abovestated also apply to
respondents Go as owners and possessors of their land and
respondent Li Ching Yao as builder of the improvement that
encroached on thirty-seven (37) square meters of respondents
Go's land.
IN VIEW WHEREOF, the decision of respondent Court of Appeals
is modified as follows:
(1) Petitioners are ordered to exercise within thirty (30) days
from finality of this decision their option to either buy the
portion of respondents Go's improvement on their Lot No. 24,
or sell to said respondents the portion of their land on which
the improvement stands. If petitioners elect to sell the land or
buy the improvement, the purchase price must be at the
prevailing market price at the time of payment. If buying the
improvement will render respondents Go's house useless, then
petitioners should sell the encroached portion of their land to
respondents Go. If petitioners choose to sell the land but
respondents Go are unwilling or unable to buy, then the latter
must vacate the subject portion and pay reasonable rent from
the time petitioners made their choice up to the time they
actually vacate the premises. But if the value of the land is
considerably more than the value of the improvement, then
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CIVIL PROCEDURE
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CIVIL PROCEDURE
brought with him Fidela and her son Oscar del Rosario, so that
the latter two may sign the mortgage and the Kasunduan there.
Although Fidela intended to sign only the Kasunduan and the
Real Estate Mortgage, she inadvertently affixed her signature
on all the three documents in the office of Atty. Barangan on
the said day, March 10, 1987. Mariano then gave Fidela the
amount of P250,000. On October 30, 1987, he also gave Fidela a
check for P200,000. In the ensuing months, also, Mariano gave
Oscar del Rosario several amounts totaling P67,800 upon the
latters demand for the payment of the balance despite Oscars
lack of authority to receive payments under the
13
Kasunduan. While Mariano was making payments to Oscar,
Fidela entrusted the owners copy of TCT No. T-50.668 (M) to
Mariano to guarantee compliance with the Kasunduan.
14
CIVIL PROCEDURE
21
around 72 at the time) and the fact that the documents were
stacked one on top of the other at the time of signing, Fidela
could have easily and mistakenly presumed that she was merely
22
signing additional copies of the Kasunduan. They also alleged
that petitioners acquired possession of the TCT through fraud
and machination.
In their defense, petitioners denied the allegations and averred
that the Deed of Absolute Sale was validly entered into by both
parties. According to petitioners, Fidela del Rosario mortgaged
Lot No. 1083-C to their predecessor in interest, Mariano Rivera,
on March 9, 1987. But on the following day Fidela decided to
sell the lot to petitioners forP2,161,622.50. When Mariano
agreed (on the condition that Lot No. 1083-C will be delivered
free from all liens and encumbrances), the Kasunduan was
consequently drawn up and signed. After that, however, Fidela
informed Mariano of the existence of Feliciano Nietos tenancy
right over the lot to the extent of 9,000 sq. m. When Mariano
continued to want the land, albeit on a much lower price of
only P601,160, as he had still to deal with Feliciano Nieto, the
parties drafted the Deed of Absolute Sale on March 10, 1987, to
supersede the Kasunduan.
Petitioners likewise argued that respondents cause of action
had been barred by laches or estoppel since more than four
years has lapsed from the time the parties executed the Deed of
Absolute Sale on March 10, 1987, to the time respondents
instituted their complaint on February 18, 1993.
Petitioners also filed a counterclaim asking for moral and
exemplary damages and the payment of attorneys fees and
costs of suit.
After trial, the RTC ruled in favor of respondents:
WHEREFORE, in the light of all the foregoing,
judgment is hereby rendered:
1. Declaring the Deed of Absolute Sale dated
March 10, 1987 as null and void;
2. Annulling TCT No. T-158443 (M) and TCT
No. T-161785 (M) both in the names of
Adelfa, Cynthia and Jose, all surnamed
Rivera;
3. Declaring the plaintiffs to be the
legitimate owners of the land covered by
TCT No. T-161785 (M) and ordering
defendant Adelfa, Cynthia, and Jose, all
surnamed Rivera, to reconvey the same to
the plaintiffs;
4. Ordering the Register of Deeds of Bulacan
to cancel TCT No. T-161785 (M) and to issue
in its place a new certificate of title in the
name of the plaintiffs as their names appear
in TCT No. T-50.668;
5. Declaring TCT No. T-161784 (M) in the
name of Feliciano Nieto as valid;
6. Ordering the defendant Riveras to pay
the plaintiffs solidarily the following
amounts:
as
exemplary
23
28
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CIVIL PROCEDURE
petitioners invoke the doctrine in Sun Insurance Office, Ltd.,
31
32
(SIOL) v. Asuncion and attach a certification from the Clerk of
Court of the RTC of Quezon City.
Respondents counter that it is beyond dispute that they paid
the correct amount of docket fees when they filed the
complaint. If the assessment was inadequate, they could not be
faulted because the clerk of court made no notice of demand or
reassessment, respondents argue. Respondents also add that
since petitioners failed to contest the alleged underpayment of
docket fees in the lower court, they cannot raise the same on
33
appeal.
We rule in favor of respondents. Jurisdiction was validly
acquired over the complaint. In Sun Insurance Office, Ltd.,
34
(SIOL) v. Asuncion, this Court ruled that the filing of the
complaint or appropriate initiatory pleading and the payment of
the prescribed docket fee vest a trial court with jurisdiction over
the subject matter or nature of the action. If the amount of
docket fees paid is insufficient considering the amount of the
claim, the clerk of court of the lower court involved or his duly
authorized deputy has the responsibility of making a deficiency
assessment. The party filing the case will be required to pay the
deficiency, but jurisdiction is not automatically lost.
Here it is beyond dispute that respondents paid the full amount
of docket fees as assessed by the Clerk of Court of the Regional
Trial Court of Malolos, Bulacan, Branch 17, where they filed the
complaint. If petitioners believed that the assessment was
incorrect, they should have questioned it before the trial court.
Instead, petitioners belatedly question the alleged
underpayment of docket fees through this petition, attempting
to support their position with the opinion and certification of
the Clerk of Court of another judicial region. Needless to state,
such certification has no bearing on the instant case.
Petitioners also contend that the trial court does not have
jurisdiction over the case because it involves an agricultural
tenant. They insist that by virtue of Presidential Decree Nos.
35
316 and 1038, it is the Department of Agrarian Reform
36
Adjudication Board (DARAB) that has jurisdiction.
Petitioners contention lacks merit. The DARAB has exclusive
original jurisdiction over cases involving the rights and
obligations of persons engaged in the management, cultivation
and use of all agricultural lands covered by the Comprehensive
37
Agrarian Reform Law. However, the cause of action in this
case is primarily against the petitioners, as indispensable
parties, for rescission of the Kasunduan and nullification of the
Deed of Sale and the TCTs issued because of them. Feliciano
Nieto was impleaded merely as a necessary party, stemming
from whatever rights he may have acquired by virtue of the
agreement between him and the Riveras and the corresponding
TCT issued. Hence, it is the regular judicial courts that have
jurisdiction over the case.
On the second issue, contrary to the ruling of the Court of
Appeals that the Deed of Absolute Sale is void only insofar as it
covers Lot No. 1083-C, we find that the said deed is void in its
entirety. Noteworthy is that during the oral arguments before
the Court of Appeals, both petitioners and respondents
admitted that Lot No. 1083-A had been expropriated by the
government long before the Deed of Absolute Sale was entered
38
into. Whats more, this case involves only Lot No. 1083-C. It
never involved Lot 1083-A. Thus, the Court of Appeals had no
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41
CIVIL PROCEDURE
(5) All other contracts specially declared by
law to be subject to rescission.
Obviously, the Kasunduan does not fall under any of those
situations mentioned in Article 1381. Consequently, Article
1383 is inapplicable. Hence, we rule in favor of the respondents.
May the contract entered into between the parties, however,
be rescinded based on Article 1191?
A careful reading of the Kasunduan reveals that it is in the
nature of a contract to sell, as distinguished from a contract of
sale. In a contract of sale, the title to the property passes to the
vendee upon the delivery of the thing sold; while in a contract
to sell, ownership is, by agreement, reserved in the vendor and
is not to pass to the vendee until full payment of the purchase
48
price. In a contract to sell, the payment of the purchase price
49
is a positive suspensive condition, the failure of which is not a
breach, casual or serious, but a situation that prevents the
obligation of the vendor to convey title from acquiring an
50
obligatory force.
Respondents in this case bound themselves to deliver a deed of
absolute sale and clean title covering Lot No. 1083-C after
petitioners have made the second installment. This promise to
sell was subject to the fulfillment of the suspensive condition
that petitioners pay P750,000 on August 31, 1987, and deposit a
postdated
check
for
the
third
installment
51
of P1,141,622.50. Petitioners, however, failed to complete
payment of the second installment. The non-fulfillment of the
condition rendered the contract to sell ineffective and without
force and effect. It must be stressed that the breach
contemplated in Article 1191 of the New Civil Code is the
obligors failure to comply with an obligation already extant, not
a failure of a condition to render binding that
52
obligation. Failure to pay, in this instance, is not even a breach
but an event that prevents the vendors obligation to convey
53
title from acquiring binding force. Hence, the agreement of
the parties in the instant case may be set aside, but not because
of a breach on the part of petitioners for failure to complete
payment of the second installment. Rather, their failure to do
so prevented the obligation of respondents to convey title from
54
acquiring an obligatory force.
Coming now to the matter of prescription. Contrary to
petitioners assertion, we find that prescription has not yet set
in. Article 1391 states that the action for annulment of void
contracts shall be brought within four years. This period shall
begin from the time the fraud or mistake is discovered. Here,
the fraud was discovered in 1992 and the complaint filed in
1993. Thus, the case is well within the prescriptive period.
On the matter of damages, the Court of Appeals awarded
respondents P323,617.50 as actual damages for the loss of the
land that was given to Nieto, P200,000 as moral
damages, P50,000 as exemplary damages, P50,000 as attorneys
fees and the costs of suit. Modifications are in order, however.
Moral damages may be recovered in cases where one willfully
causes injury to property, or in cases of breach of contract
where the other party acts fraudulently or in bad
55
faith. Exemplary damages are imposed by way of example or
56
correction for the public good, when the party to a contract
acts in a wanton, fraudulent, oppressive or malevolent
57
manner. Attorneys fees are allowed when exemplary
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"Per copy of the official receipt attached to appellants motion
for reconsideration, the docket fee was paid on November 4,
1998 or 4 months after the notice of appeal was filed on July 3,
1998.
Consequently, appellants motion for reconsideration is hereby
denied."
In the instant petition for review, petitioners raise the following
errors allegedly committed by the Appellate Court:
"I. The respondent Court of Appeals seriously erred in
considering petitioners appeal as deemed abandoned and
dismissed for alleged failure of petitioners to pay docket fee.
II. the respondent Court of Appeals gravely erred in denying
petitioners motion for reconsideration of the resolution
considering petitioners appeal as deemed abandoned and
dismissed on the ground that the docket fee was paid on
November 4, 1998, or four (4) months after the notice of appeal
was filed on July 3, 1998.
III. the respondent Court of Appeals in issuing the aforesaid
resolutions gave premium on technicalities rather on substance
and substantial justice and disregarded the merits of
petitioners case."
In sum, the issue is whether the Court of Appeals correctly
dismissed the petition for failure of the petitioners to pay
appellate court docket fee.
In dismissing petitioners appeal, the Court of Appeals cited
Section 1(c), Rule 50 of the Revised Rules of Court which
provides:
"Section 1. Grounds for dismissal of appeal. An appeal may be
dismissed by the Court of Appeals, on its own motion or on that
of the appellee, on the following grounds:
xxx
(c) Failure of the appellant to pay the docket and other lawful
fees as provided in Section 4 of Rule 41."
CIVIL PROCEDURE
Petitioners argue that the Appellate Court, in issuing the
assailed Resolutions, gave premium to technicalities rather than
substance and disregarded the merits of the petition. They ask
for a liberal construction of the Rules.
Appeal is not a right but a statutory privilege, thus, appeal must
be made strictly in accordance with the provision set by law.
The requirement of the law under Section 4, Rule 41 is clear.
The payment of appellate docket fee is not a mere technicality
of law or procedure but an essential requirement for the
8
perfection of an appeal.
The payment of the docket fee within the period is a
condition sine qua non for the perfection of an appeal. Contrary
to petitioners submission, the payment of the appellate court
docket and other lawful fees is not a mere technicality of law or
procedure. It is an essential requirement, without which the
decision or final order appealed from would become final and
9
executory as if no appeal was filed at all.
This Court has consistently ruled that litigation is not a game of
technicalities and that every case must be prosecuted in
accordance with the prescribed procedure so that issues may
be properly presented and justly resolved. The rules of
procedure must be faithfully followed except only when, for
persuasive and weighting reasons, they may be relaxed to
relieve a litigant of an injustice commensurate with his failure to
comply within the prescribed procedure. Concomitant to a
liberal interpretation of the rules of procedure should be an
effort on the part of the party invoking liberality to adequately
10
explain his failure to abide by the rules. Anyone seeking
exemption from the application of the Rule has the burden of
proving that exceptionally meritorious instances exist which
11
warrant such departure.
In the present case, petitioners failed to establish any sufficient
and satisfactory reason to warrant a relaxation of the
mandatory rule on the payment of appellate court docket fee.
Actually, the payment of the required docket fee was late
because of the erroneous interpretation of the Rule by
petitioners counsel. Verily, to grant their petition would be
putting a premium on his ignorance or lack of knowledge of
existing Rules. He should be reminded that it is his duty to keep
abreast of legal developments and prevailing laws, rules and
12
legal principles, otherwise his clients will be prejudiced, as in
this case.
In fine, the Court of Appeals did not err in dismissing
petitioners appeal.
WHEREFORE,
the
instant
petition
for
on certiorari is DENIED. Costs against petitioners.
review
SO ORDERED.
Time and again, this Court has consistently held that payment
of docket fee within the prescribed period is mandatory for the
perfection of an appeal. Without such payment, the appellate
court does not acquire jurisdiction over the subject matter of
the action and the decision sought to be appealed from
7
becomes final and executory.
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MARIA
ELLI,
ET
AL., plaintiffs-appellees,
vs.
JUAN DITAN, ET AL., defendants-appellants.
Teodosio
Dio,
Jr.
for
plaintiffs-appellees.
Fernando P. Gerona, Sr. for defendants-appellants.
PAREDES, J.:
In a Forcible Entry case instituted by Juan Elli and Maria Elli, in
the Justice of the Peace Court of Bacon, Sorsogon, against Juan
Ditan and Marcial Bronola, judgement was rendered, after due
hearing, the dispositive portion of which reads
IN VIEW OF THE FOREGOING, the defendant is
ordered to return the land and restore the plaintiffs in
their original possession of the land; pay the plaintiffs
P200.00 as damages and P100.00 as attorney's fees
and pay the costs of this suit.
Plaintiffs and defendants were furnished with copies of the
above judgment on July 17, 1959.
On July 28, 1959, the defendants, thru Atty. Fernando Gerona,
Jr., "Attorney for defendants-appellants", filed with the said
Justice of the Peace Court, a Notice of Appeal. The record of the
case was received by the CFI on August 6, same year. On August
11, 1959, a Notice of Appealed Case was sent by the Clerk,
Court of First Instance, to the parties, which were received on
August 15 and 17, by Maria Elli and Juan Ditan, respectively, and
on September 18, 1959, by Marcial Broola. In spite of receipt
by the parties, the defendants failed to file their Answer to the
Complaint, which was deemed reproduced. Under date of
December 23, 1959, the plaintiffs, thru counsel, presented a
Motion to Declare Defendants in Default and to set date for
presentation of Evidence. The CFI declared defendants in
default on January 7, 1960. On March 10, 1960, after hearing
wherein the plaintiffs presented oral as well as documentary
evidence, the CFI rendered the following judgment
WHEREFORE, the Court hereby sentences the
defendants to vacate the premises and return the
possession thereof to the plaintiffs. They are hereby
senteced jointly and severally to pay the plaintiffs the
sum of P480.00 as damages. The Court cannot grant
the plaintiffs a greater amount than this, because the
defendant are defaulted. The defendants shall pay the
costs of this action.
Copies of the above decision were received by the defendants,
on April 5, 1960. On April 20, 1960, defendants thru counsel,
presented a pleading captioned "Motion to Reconsider Decision
dated March 10, 1960", where, in the main, it was contended
that the reason for the failure to file Answer was due to lack of
notice to counsel. The defendants claim that inasmuch as they
were represented by counsel, notice should have been sent to
said counsel, and there being no notice to him, there is no
service in law and, therefore, they can not be in default. On
May 6, 1960, the court a quo handed down an Order denying
the motion, stating that there was no need to send the notice
to counsel, since in appeals from the Justice of the Peace
Courts, no summons is necessary in order that defendant may
have to file Answer, and that the notice of receipt of appealed
CIVIL PROCEDURE
case may be either sent to the attorney or the party. This Order
is now before Us on appeal, defendants claiming that it was
error on the part of the lower court to consider that notice to
them was sufficient.
The provisions of the rules pertinent to the issues raised by the
parties the Sec. 2, of Rule 27, and Sec. 7, Rule 40, which are
reproduced below:
Sec. 2. Every order required by its terms to be served,
every pleading subsequent to the complaint, every
written motion other than one which may be
heard ex-parte, and every written notice, appearance,
demand, offer of judgment or similar papers shall be
filed with the court, and served upon the parties
affected thereby. If any of such parties has appeared
by an attorney or attorneys, service upon him shall be
made upon his attorneys or one of them, unless
service upon the party himself is ordered by the court.
Where one attorney appears for several parties, he
shall only be entitled to one copy of any paper served
upon him by the opposite side. (Rule 27).
SEC. 7. Upon the docketing of the cause under appeal,
the complaint filed in the justice of the peace or
municipal court shall be considered reproduced in the
Court of First Instance and it shall be the duty of the
clerk of the court to notify the parties of that fact by
registered mail, and the period for making an answer
shall begin with the date of the receipt of such notice
by the defendant. (Rule 40).
Under the above provisions, therefore, it would seem quite
clear that service, notice, and the like, should be made on the
party, if not represented by counsel. The moment a party
appears by counsel, notice and other processes should be made
upon said counsel, service upon the party himself not being
considered service in law. It is true that under Sec. 7, Rule 40,
the Rule requires that notification be made on the parties by
registered mail. The wordparties as used in said provision,
should not, however, be interpreted to mean the parties
themselves. The word "parties" is used because, more often
than not, in the Justice of the Peace Court, the parties are not
represented by a lawyer. A party can appear in his own behalf,
and notice to him would be sufficient. The moment an attorney
appears for any party, notice should be given to the former. ". . .
where a party appears by attorney in an action or proceeding in
a court of record all notices thereafter required to be given in
the action or proceeding must be given to the attorney and not
to the client; and a notice given to the client and not to his
attorney is not a notice in law." (Palad v. Cui, et al., 28 Phil. 44).
In legal contemplation, therefore, and under the facts of the
present case, there was no legal service of the notice, and the
defendants could not be in default.
The Order appealed from, is hereby set aside. The case is
remanded for further and appropriate proceedings in the
premises. No costs.1wph1.t
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CIVIL PROCEDURE
No action was taken on the report. On June 29, 1960, however,
four (4) months after the filing of the complaint, the PHHC
instituted with the CFI of Rizal, Quezon City Branch, an action
for Recovery of Possession (Civil Case No. Q-5227). After the
issues have been joined, with the appellant interposing the
Special Defense of Priority of right to purchase, and ability to
pay, as found by no less than the investigators of the appellee
PHHC, the case was set for hearing on February 7, 1961.
Defendants-appellants' counsel, Atty. Bonifacio Taega failed to
notify appellants of the scheduled hearing and the case was
heard, in their absence and plaintiff introduced evidence
showing ownership of the property. On February 24, 1961,
judgment was rendered pertinent portions of which are
reproduced hereunder, to wit:
It appears from the evidence adduced that plaintiff is
a corporation duly organized and existing under and
by virtue of the laws of the Philippines; that plaintiff is
the owner of a parcel of land situated in Quezon City
and more particularly described as Lot No. 23, Block
No. E-156, East Ave. Subdivision, this city and covered
by Transfer Certificate of Title No. 1356 of the
Register of Deeds of Quezon City; that sometime in
the year 1954 the defendants without the knowledge
and consent of the plaintiff entered upon and
thereafter constructed their houses on portion of the
land referred to therein depriving the plaintiff of the
possession thereof; ... .
WHEREFORE, judgment is hereby rendered ordering
the defendants and all persons claiming under them
to vacate the premises in question; to remove their
houses and other improvements thereon and to pay
the plaintiff the sum of P26.70 per month from the
date of occupation until, the premises in question is
restored to the plaintiff; to pay the attorney's fees in
the amount of P200.00 plus costs.
Although the above judgment was received by counsel for the
appellants, he never informed the latter about the matter.
Neither did he take steps to protect the interests of his clients,
by presenting a motion for reconsideration and/or filing a
petition to set aside judgment. Appellants only came to know
that an adverse decision had been promulgated when on May
12, 1961, the Deputy Sheriff of Quezon City, served them a copy
of writ of execution ordering them to vacate the premises and
to pay the amounts ordained therein. Appellants lost no time in
contacting their counsel, Atty. Taega, and failing to do so, they
engaged the services of Atty. Ciriaco Sayson, who presented
with the lower Court a Petition for Relief from Judgment,
accompanied by affidavits of merit. The Presiding Judge cited
Atty. Taega to appear before him, because of the seriousness
of the charges. Atty. Taega admitted to the court that he did
not inform the appellants of the hearing, as he forgot all about
the same; that he received the decision but did not also inform
the appellants about it, because he forgot all about the case,
explaining that he had so many ejectment cases then, that the
orders and decisions in the case just escaped his attention.
Plaintiff PHHC interposed an opposition to the Petition for Relief
claiming, in the main, that the same was filed out of time,
because the decision was received by former counsel on March
7, 1961, and the petition was presented only on May 9, 1961.
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CIVIL PROCEDURE
circumstances; otherwise, in the court's desire to make a short
cut of the proceedings, it might foster, wittingly or unwittingly,
dangerous collusions to the detriment of justice. It would then
be easy for one lawyer to sell one's rights down the river, by
just alleging that he just forgot every process of the court
affecting his clients, because he was so busy. Under this
circumstance, one should not insist that a notice to such
irresponsible lawyer is also a notice to his clients.
Moreover, the petition for relief from judgment under
consideration, may even be considered as one for relief from
the order of execution, which was filed within the reglementary
period, inasmuch as Section 2 of Rule 38, Revised Rules, does
not only refer to judgments, but also to orders, or any other
proceedings.
The very allegations in the petition for relief and affidavits and
other documents attached thereto, justify the return of the case
to the court of origin so that, in the interest of justice,
appellants may be given a chance to prove their defenses.
The attention of the trial court is invited to the censurable
conduct of Atty. Bonifacio Taega in this particular case, and to
take such action as may be warranted in the premises.
CONFORMABLY WITH THE FOREGOING, the order of the lower
court dated July 17, 1961, is hereby set aside and another
entered, remanding the case to the court of origin for further
proceedings, and thereafter to render judgment accordingly.
With costs against appellee PHHC, in both instances.
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FELICIANO, J.:
Private respondent Peter Cosalan was the General Manager of
Petitioner Benguet Electric Cooperative, Inc. ("Beneco"), having
been elected as such by the Board of Directors of Beneco, with
the approval of the National Electrification Administrator, Mr.
Pedro Dumol, effective 16 October 1982.
On 3 November 1982, respondent Cosalan received Audit
Memorandum No. 1 issued by the Commission on Audit
("COA"). This Memorandum noted that cash advances received
by officers and employees of petitioner Beneco in the amount
of P129,618.48 had been virtually written off in the books of
Beneco. In the Audit Memorandum, the COA directed petitioner
Beneco to secure the approval of the National Electrification
Administration ("NEA") before writing off or condoning those
cash advances, and recommended the adoption of remedial
measures.
On 12 November 1982, COA issued another Memorandum
Audit Memorandum No. 2 addressed to respondent Peter
Cosalan, inviting attention to the fact that the audit of per
diems and allowances received by officials and members of the
Board of Directors of Beneco showed substantial
inconsistencies with the directives of the NEA. The Audit
Memorandum once again directed the taking of immediate
action in conformity with existing NEA regulations.
On 19 May 1983, petitioner Beneco received the COA Audit
Report on the financial status and operations of Beneco for the
eight (8) month period ended 30 September 1982. This Audit
Report noted and enumerated irregularities in the utilization of
funds amounting to P37 Million released by NEA to Beneco, and
recommended that appropriate remedial action be taken.
Having been made aware of the serious financial condition of
Beneco and what appeared to be mismanagement, respondent
Cosalan initiated implementation of the remedial measures
recommended by the COA. The respondent members of the
Board of Beneco reacted by adopting a series of resolutions
during the period from 23 June to 24 July 1984. These Board
Resolutions abolished the housing allowance of respondent
Cosalan; reduced his salary and his representation and
commutable allowances; directed him to hold in abeyance all
pending personnel disciplinary actions; and struck his name out
as a principal signatory to transactions of petitioner Beneco.
During the period from 28 July to 25 September 1984, the
respondent Beneco Board members adopted another series of
resolutions which resulted in the ouster of respondent Cosalan
as General Manager of Beneco and his exclusion from
CIVIL PROCEDURE
performance of his regular duties as such, as well as the
withholding of his salary and allowances. These resolutions
were as follows:
1. Resolution No. 91-4 dated 28 July 1984:
. . . that the services of
Peter M. Cosalan as
General Manager of
BENECO is terminated
upon approval of the
National Electrification
Administration;
2. Resolution No. 151-84 dated September
15, 1984;
. . . that Peter M.
Cosalan
is
hereby
suspended from his
position as General
Manager of the Benguet
Electric Cooperative, Inc.
(BENECO) effective as of
the start of the office
hours on September 24,
1984, until a final
decision
has
been
reached by the NEA on
his dismissal;
. . . that GM Cosalan's
suspension from office
shall remain in full force
and effect until such
suspension is sooner
lifted,
revoked
or
rescinded by the Board
of Directors; that all
monies due him are
withheld until cleared;
3. Resolution No. 176-84 dated September
25, 1984;
. . . that Resolution No.
151-84,
dated
September 15, 1984
stands as preventive
suspension for GM Peter
1
M. Cosalan.
Respondent Cosalan nevertheless continued to work as General
Manager of Beneco, in the belief that he could be suspended or
removed only by duly authorized officials of NEA, in accordance
with provisions of P.D. No, 269, as amended by P.D. No. 1645
(the statute creating the NEA, providing for its capitalization,
powers and functions and organization), the loan agreement
2
between NEA and petitioner Beneco and the NEA
3
Memorandum of 2 July 1980. Accordingly, on 5 October and
10 November 1984, respondent Cosalan requested petitioner
Beneco to release the compensation due him. Beneco, acting
through respondent Board members, denied the written
request of respondent Cosalan.
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CIVIL PROCEDURE
Respondent Board members, however, insist that their
Memorandum on Appeal was filed on time because it was
delivered for mailing on 1 May 1988 to the Garcia
Communications Company, a licensed private letter carrier. The
Board members in effect contend that the date of delivery to
Garcia Communications was the date of filing of their appeal
memorandum.
Respondent Board member's contention runs counter to the
established rule that transmission through a private carrier or
letter-forwarder instead of the Philippine Post Office is
5
not a recognized mode of filing pleadings. The established rule
is that the date of delivery of pleadings to a private letterforwarding agency is not to be considered as the date of filing
thereof in court, and that in such cases, the date of actual
receipt by the court, and not the date of delivery to the private
6
carrier, is deemed the date of filing of that pleading.
There, was, therefore, no reason grounded upon substantial
justice and the prevention of serious miscarriage of justice that
might have justified the NLRC in disregarding the ten-day
reglementary period for perfection of an appeal by the
respondent Board members. Accordingly, the applicable rule
was that the ten-day reglementary period to perfect an appeal
is mandatory and jurisdictional in nature, that failure to file an
appeal within the reglementary period renders the assailed
decision final and executory and no longer subject to
7
review. The respondent Board members had thus lost their
right to appeal from the decision of the Labor Arbiter and the
NLRC should have forthwith dismissed their appeal
memorandum.
There is another and more compelling reason why the
respondent Board members' appeal should have been
dismissed forthwith: that appeal was quite bereft of merit. Both
the Labor Arbiter and the NLRC had found that the indefinite
suspension and termination of services imposed by the
respondent Board members upon petitioner Cosalan was illegal.
That illegality flowed, firstly, from the fact that the suspension
of Cosalan was continued long after expiration of the period of
thirty (30) days, which is the maximum period of preventive
suspension that could be lawfully imposed under Section 4, Rule
XIV of the Omnibus Rules Implementing the Labor Code.
Secondly, Cosalan had been deprived of procedural due process
by the respondent Board members. He was never informed of
the charges raised against him and was given no opportunity to
meet those charges and present his side of whatever dispute
existed; he was kept totally in the dark as to the reason or
reasons why he had been suspended and effectively dismissed
from the service of Beneco Thirdly, respondent Board members
failed to adduce any cause which could reasonably be regarded
as lawful cause for the suspension and dismissal of respondent
Cosalan from his position as General Manager of Beneco.
Cosalan was, in other words, denied due process both
procedural and substantive. Fourthly, respondent Board
members failed to obtain the prior approval of the NEA of their
suspension now dismissal of Cosalan, which prior approval was
required, inter alia, under the subsisting loan agreement
between the NEA and Beneco. The requisite NEA approval was
subsequently sought by the respondent Board members; no
NEA approval was granted.
In reversing the decision of the Labor Arbiter declaring
petitioner Beneco and respondent Board members solidarily
liable for the salary, allowances, damages and attorney's fees
awarded to respondent Cosalan, the NLRC said:
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Respondent BENECO as
an artificial person could
not have, by itself, done
anything to prevent it.
But because the former
have acted while in
office and in the course
of their official functions
as directors of BENECO, .
..
Thus, the decision of the Labor Arbiter
should be modified conformably with all the
foregoing holding BENECO solely liable for
backwages and releasing the appellant
board members from any individual
liabilities. 8 (Emphasis supplied)
The applicable general rule is clear enough. The Board members
and officers of a corporation who purport to act for and in
behalf of the corporation, keep within the lawful scope of their
authority in so acting, and act in good faith, do not become
liable, whether civilly or otherwise, for the consequences of
their acts, Those acts, when they are such a nature and are
done under such circumstances, are properly attributed to the
corporation alone and no personal liability is incurred by such
9
officers and Board members.
The major difficulty with the conclusion reached by the NLRC is
that the NLRC clearly overlooked or disregarded the
circumstances under which respondent Board members had in
fact acted in the instant case. As noted earlier, the respondent
Board members responded to the efforts of Cosalan to take
seriously and implement the Audit Memoranda issued by the
COA explicitly addressed to the petitioner Beneco, first by
stripping Cosalan of the privileges and perquisites attached to
his position as General Manager, then by suspending
indefinitely and finally dismissing Cosalan from such position. As
also noted earlier, respondent Board members offered no
suggestion at all of any just or lawful cause that could sustain
the suspension and dismissal of Cosalan. They obviously wanted
to get rid of Cosalan and so acted, in the words of the NLRC
CIVIL PROCEDURE
itself, "with indecent haste" in removing him from his position
and denying him substantive and procedural due process. Thus,
the record showed strong indications that respondent Board
members had illegally suspended and dismissed Cosalan
precisely because he was trying to remedy the financial
irregularities and violations of NEA regulations which the COA
had brought to the attention of Beneco. The conclusion reached
by the NLRC that "the records do not disclose that the individual
Board members were motivated by malice or bad faith" flew in
the face of the evidence of record. At the very least, a strong
presumption had arisen, which it was incumbent upon
respondent Board members to disprove, that they had acted in
reprisal against respondent Cosalan and in an effort to suppress
knowledge about and remedial measures against the financial
irregularities the COA Audits had unearthed. That burden
respondent Board members did not discharge.
The Solicitor General has urged that respondent Board
members may be held liable for damages under the foregoing
circumstance under Section 31 of the Corporation Code which
reads as follows:
Sec. 31. Liability of directors, trustees or
officers. Directors or trustees who
willfully and knowingly vote for or assent to
patently unlawful acts of the corporation
or who are guilty of gross negligence or bad
faith in directing the affairs of the
corporation or acquire any personal or
pecuniary interest in conflict with their duty
as such directors or trustees shall be jointly
liable and severally for all damages resulting
therefrom suffered by the corporation, its
stockholders or members and other persons
. . . (Emphasis supplied)
We agree with the Solicitor General, firstly, that Section 31 of
the Corporation Code is applicable in respect of Beneco and
other electric cooperatives similarly situated. Section 4 of the
Corporation Code renders the provisions of that Code
applicable in a supplementary manner to all corporations,
including those with special or individual charters so long as
those provisions are not inconsistent with such charters. We
find no provision in P.D. No. 269, as amended, that would
exclude expressly or by necessary implication the applicability
of Section 31 of the Corporation Code in respect of members of
the boards of directors of electric cooperatives. Indeed, P.D. No.
269 expressly describes these cooperatives as "corporations:"
Sec. 15. Organization and Purpose.
Cooperative non-stock,
non-profit
membership corporationsmay be organized,
and electric
cooperative
corporations heretofore
formed
or
registered under the Philippine nonAgricultural Co-operative Act may as
hereinafter provided be converted, under
this Decree for the purpose of supplying,
and of promoting and encouraging-the
fullest use of, service on an area coverage
basis at the lowest cost consistent with
sound economy and the prudent
management of the business of such
10
corporations. (Emphasis supplied)
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CIVIL PROCEDURE
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DE CASTRO, J.:
Special civil action of certiorari and prohibition with writ of
preliminary injunction to annul and set aside the Order dated
January 28, 1980 of the defunct Court of First Instance of
Cebu, Branch VI, herein respondent judge presiding, setting
aside the Order for the issuance of a writ of execution issued
by Branch V of said Court in Civil Case No. R-15607 on January 8,
1980, and to restrain and enjoin respondent judge from further
proceeding with the case in any manner until further orders
from this Court.
On September 22, 1976, herein petitioners filed a complaint
with the Court of First Instance of Cebu, assigned toBranch
V thereof, then presided by Judge Mariano A. Zosa, docketed as
Civil Case No. R- 15607, for the nullification of certain
documents alleged in the complaint, which they, claiming to be
"illiterate mountain people", supposedly had signed upon the
representations of the defendants, herein private respondents,
that what they were signing was a right of way in favor of the
government over their lands for the construction of a road
leading to a mining site, with the inducement that once
operational, each landowner shall be entitled to a royalty of
P.30 per ton of minerals loaded in trucks passing through their
respective lots, which documents, however, turned out to be
alleged authorizations for entry into their 'lets by private
respondents for the purpose of exploring rich rock phosphate
deposits, and on the basis of said documents, private
respondents were granted by the Bureau of Mines permits to
exploit and develop the mineral resources in petitioners' land to
the exclusion of the latter.
In their answer, private respondents specifically denied the
material allegations thereof, claiming that the questioned
documents were freely and voluntarily executed by the
petitioners.
After hearing on the merits and the case submitted for decision,
the trial court rendered judgment on October 1, 1979 declaring
the subject documents null and void, and adjudging private
respondents liable to pay damages to petitioners. A copy of said
decision was served to Atty. Romeo Gonzaga, private
respondents' counsel of record and was received his wife at his
given address on November 23, 1979.
No appeal having been duly perfected within the reglementary
period provided by law, petitioners filed on January 7, 1980 a
CIVIL PROCEDURE
motion for the issuance of a writ of execution, which was
granted by the trial court in its Order of January 8, 1980,
On January 12, 1980 or four days after the issuance of the order
of execution, Branch V became vacant with the appointment of
Judge Zosa to the Court of Appeals.
On January 14, 1980, private respondents, through a new
lawyer, Atty. Ponciano H. Alivio, filed a motion for
reconsideration of the Order of January 8, 1980 and to quash
the writ of execution, on the ground that the decision is not yet
final and executory for lack of valid service thereof. Said motion
was opposed by petitioners, who insisted that said decision is
already final and executory, and Atty. Alivio has no personality
to file said motion for want of formal substitution of counsel as
required by the Rules.
Since Branch V was then vacant, the motion for reconsideration
was resolved by Branch VI, presided over by the respondent
judge who, on January 28, issued the herein assailed Order
setting aside the Order of execution and quashing the writ
issued thereunder.
Petitioners' motion for reconsideration filed against the above
order of respondent judge having been denied, this petition was
filed.
We find the petition to be meritorious. That the decision of the
trial court was received by the wife of Atty. Romeo Gonzaga,
private respondents' counsel of record at his given address on
November 23, 1979, is not disputed. It is likewise not disputed
that said wife has been receiving prior notices of the case for
her husband at the office of the latter, who had always acted as
if he had received said notices himself for he had duly complied
therewith. With these facts, no other ruling can be had but that
the service of the decision in question is valid and binding. It is
fully being in accordance with Rule 13, Section 4, on personal
service, said wife being of sufficient discretion to receive notice
of final judgment.
Private respondents argue that said service is not valid because
Atty. Gonzaga had left Cebu City, his address of record, and has
resided in Legaspi City. It is already well settled rule that when a
party is represented by counsel, notice should be made upon
1
the counsel of record at his given address, to which notices of
all kind emanating from the court should be sent in the absence
of a proper and adequate notice to the court of a change of
2
address. Petitioner's argument, likewise, fails to consider the
need of observing a legal formality before a counsel of record
may be considered relieved of his responsibility as such counsel
on account of withdrawal. This legal formality is that a lawyer's
withdrawal as counsel must be made in a formal petition filed in
the case, without which, notice of judgment rendered in the
case served on the counsel of record, is, for all legal purposes
notice to the client, the date of receipt of which is considered
the starting point from which the period of appeal prescribed
3
by law shall begin to run. Not having withdrawn formally as
counsel in the case, Atty. Romeo Gonzaga continued to be the
4
counsel of record and was, for all legal purpose, private
respondents' attorney upon whom the court's processes may
be served, as they were in fact duly served.
Consequently, the decision of the trial court, copy of which was
served upon respondents' counsel on November 23, 1979, is
already final and executory at the time the order of execution
was issued on January 8, 1980, no appeal having been taken
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CIVIL PROCEDURE
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AQUINO, J.:
This case is about the judgment of the Court of Appeals which
became final and executory because the counsel for the losing
party did not claim from the post office the registered mail
containing the copy of the resolution denying his motion for
reconsideration.
The Court of Appeals in its decision dated December 20, 1974 in
Feraren vs. Santos, CA-G.R. No. 52724-R ordered Aristeo T.
Feraren to deliver a certain Volkswagen car to Remedios Santos
and to pay her as damages ten pesos a day from September 22,
1967 up to the time of delivery plus P1,000 as attorney's fees.
A copy of that decision was served on December 26, 1974 on
Felipe Ponce, Feraren's counsel. Ponce withdrew from the case
and he was replaced by Mendez, Mendez & Associates who on
January 8, 1975 entered their appearance as Feraren's new
counsel and filed a motion asking for an extension of thirty days
within which to file a motion for reconsideration.
The Court of Appeals in its resolution of January 13, 1975
approved Ponce's withdrawal from the case and granted
Feraren's new lawyers the thirty-day extension with the
warning that no further extension would be granted. The
Mendez law office received a copy of that resolution
by registered mail.
Lawyer Pershing L. Mendez asked for another thirty-day
extension which was reluctantly granted by the Court of
Appeals in its resolution of February 14, 1975 in this wise:
"Motion is apparently not well-founded because appellee's
(Feraren's) counsel is a law firm with several members.
However, granted as a last chance." Feraren's lawyers received
a copy of that resolution also by registered mail.
Feraren's motion for reconsideration, which was filed on March
11, 1975, was denied for lack of merit in the resolution dated
March 14, 1975 (Per Gatmaitan, J., with Reyes and Plana, JJ.,
concurring).
A copy of that resolution, like the two prior resolutions, was
sent by registered mail in the Manila central post office on
March 21, 1975 to Mendez, Mendez & Associates at their
address of record, 1740 Sisa Street, Sampaloc, Manila. Two
notices dated March 21 and 26 regarding that registered mail
were sent to the Mendez law office at that address.
However, that particular registered mail was returned to the
Court of Appeals with the notation stamped on the envelope:
"Return to Sender Unclaimed". Also stamped on the envelope
were the words "March 26 Second Notice" and "Entry Registry
April 2, 1975 ".
CIVIL PROCEDURE
The officer-in-charge of the central post office in Manila
informed the Court of Appeals that the said registered mail was
returned to the Court's representative on April 2, 1975 after
two notices were sent at the Mendez law office and the mail
was not claimed (p. 61, Rollo).
On the assumption that the judgment became final on March
31, 1975, entry of judgment was made the record was
remanded to the lower court on May 21, 1975. Copies of the
entry of judgment were mailed to the lawyers of the parties.
On June 5, 1975, Pershing L. Mendez, Feraren's counsel, filed a
manifestation (motion) wherein he prayed for the recall of the
entry of judgment on the ground that his motion for
reconsideration had not yet been resolved; hence, the
judgment "could not become final and executory".
The Court of Appeals in its minute resolution dated June 19,
1975 denied the motion for the recall of the entry of judgment
because, as already stated, the motion for reconsideration had
already been resolved.
On July 1, 1975, lawyer Mendez filed a manifestation (motion)
wherein he prayed that he be allowed to appeal "as a
consequence of the denial of the motion for reconsideration".
He said that he had not received a copy of the resolution
denying his motion for reconsideration. The Court of Appeals in
its resolution dated July 14, 1975 did not grant that prayer. A
copy of that resolution was received by Mendez by registered
mail on July 23, 1975.
Lawyer Mendez did not assail that resolution immediately in
this Court. More than a month later, or on September 5, 1975,
after a writ of execution was served on Feraren, he filed in this
Court this petition for certiorari, prohibition and mandamus
wherein he prayed that he be allowed to appeal and that the
lower court be enjoined from executing the judgment of the
Court of Appeals.
Lawyer Mendez alleged in that petition and in his affidavit that
in his office at his residence there was always someone to
attend to correspondence and that he did not leave the city
during the period when the notice of registered mail was
supposedly sent to his law office. His office clerk made a similar
affidavit.
However, the fact remains that the postmaster certified that
although two notices were sent to Mendez's office, the
registered mail in question was not claimed at the Manila
central post office (p. 83, CA Record).
The rule is that if the addressee of registered mail fails to claim
it from the post office within five days from the date of the first
notice of the postmaster, service becomes effective at the
expiration of that five-day period (Sec. 8, Rule 13, Rules of
Court).
Between the denial of a lawyer that he received the first notice
of registered mail and the postmaster's certification that said
notice was sent, the postmaster's claim should be believed
because it is his official duty to send notices of registered mail.
The presumption is that official duty was regularly performed.
(Grafil vs. Feliciano, L-27166, June, 30, 1967, 20 SCRA 616 citing
Enriquez vs. Bautista, 79 Phil. 220, 222).
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CIVIL PROCEDURE
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CIVIL PROCEDURE
addressed to them was returned to the court with the notation
deceased.
On September 22, 1981, the respondent court issued its now
assailed Resolution ordering the issuance of the entry of
judgment.
Petitioners' motion for reconsideration was denied hence, they
filed the present petition, which We find to be without merit.
It is well-settled that when a party is represented by counsel,
notice should be made upon the counsel of record at his given
address to which notices of all kinds emanating from the court
should be sent in the absence of a proper and adequate notice
to the court of a change of address. (Cubar vs. Mendoza, 120
SCRA 768).lawph!1
In the case now before Us, the records show that the notice and
copy of the decision of respondent Court of Appeals were sent
to petitioners's counsel of record Atty. Atinidoro E. Sison at his
given mailing address which is 33 B.M.A. Avenue, Tatalon,
Quezon City. The first notice to him by the Postmaster to claim
his mail was on July 9, 1981. The rule is that service of notice
becomes effective at the expiration of the five-day period upon
failure of the addresse to claim his mail within five (5) days from
the date of first notice Sec. 8, Rule 13 Rules of Court (Feraren
vs. Santos, 113 SCRA 707). Therefore in this case the service
became effective five days after July 9, 1981 which is July 14,
1981. The decision became final on August 13, 1981. A xerox
copy of the said envelope properly addressed appears on page
52 of the Rollo. This fact is further shown by the certification
issued by the then Acting Clerk of the Court of Appeals, Atty.
Cesar M. Marzan. (p. 51, Rollo). If Atty. Sison moved to another
address without informing the respondent of his change of
address the omission or neglect will not stay the finality of the
decision. The notice sent to petitioners themselves, under the
circumstances is not even necessary. (Francisco vs. Puno, 108
SCRA 427). It may be stated though that while petitioners claim
that Teofilo Magno to whom the notice to the petitioners was
addressed is already dead, it is not explained why their present
petition before this Court still includes the name Teofilo Magno.
There is no indication in the record that he has been duly
substituted by his legal representative.
The decision in this case having become final on July 29, 1981,
there being no appeal taken therefrom, respondent court
committed no error in issuing its resolution dated September
22, 1981 ordering the issuance of the corresponding entry of
judgment.
WHEREFORE, for lack of merit, this petition is hereby
DISMISSED. The restraining order earlier issued is lifted.
SO ORDERED.
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FAUSTO
ISAAC, plaintiff-appellant,
vs.
LEOPOLDO MENDOZA, defendant-appellee.
Cea,
Blancaflor
and
Jose M. Peas for appellee.
Cea
CIVIL PROCEDURE
for
appellant.
BENGZON, J.:
For the amount of four hundred and fifty pesos, Japanese
currency, Fausto Isaac, plaintiff, sold to Leopoldo Mendoza,
defendant, a parcel of land in Pili, Camarines Sur, reserving the
right to repurchase within four years. The sale took the place in
February 1944. After liberation, the seller offered to redeem,
but defendant objected, saying the redemption was premature.
Hence this litigation instituted in the court of first instance of
said province, in February 1946, to compel re-transfer.
After having been duly summoned, the defendant failed to
answer. Consequently, upon plaintiff's motion, he was
defaulted by order of May 10, 1947. Thereafter, i.e. on
September 23, 1947, considering the plaintiff's evidence the
court rendered judgment requiring the defendant to execute a
deed of re-sale of the land, to receive the amount of P90
Philippine currency, which Fausto Isaac had consigned in court,
to pay damages in the sum of P95.
On December 9, 1947 Leopoldo Mendoza submitted a petition
to set aside the judgment invoking accident, mistake, or
excusable negligence. Opposed by plaintiff, the petition was
denied. Wherefore defendant appealed directly to this court.
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March 8, 2001
PERLA
S.
vs.
ASIA BREWERY, INC., respondent.
ZULUETA, petitioner,
PANGANIBAN, J.:
When two or more cases involve the same parties and affect
closely related subject matters, they must be consolidated and
jointly tried, in order to serve the best interests of the parties
and to settle expeditiously the issues involved. Consolidation,
when appropriate, also contributes to the declogging of court
dockets.
CIVIL PROCEDURE
On January 3, 1997, petitioner moved for the consolidation of
the Makati case with the Iloilo case. Granting the Motion, Judge
Parentala ordered on February 13, 1997, the consolidation of
the two cases. Respondent filed a Motion for Reconsideration,
which was denied in an Order dated May 19, 1997.
On August 18, 1997, respondent filed before the Court of
Appeals a Petition for Certiorari assailing Judge Parentala's
February 13, 1997 and May 19, 1997 Orders.
Ruling of the Court of Appeals
Setting aside the trial court's assailed Orders which
consolidated the Iloilo and the Makati cases, the CA ruled in this
wise:
The Case
Before us is a Petition for Review on Certiorari under Rule 45 of
1
the Rules of Court, questioning the August 4, 1998 Decision of
the Court of Appeals (CA) in CA-GR SP No. 45020; as well as the
2
February 23, 1999 Resolution denying petitioner's Motion for
Reconsideration. The decretal portion of the CA Decision reads
as follows:
"WHEREFORE, the instant petition is given due course.
The assailed orders of the Regional Trial Court, Makati
City, Branch 142 dated 13 February 1997 and 19 May
1997 are hereby ANNULED and SET ASIDE.
SO ORDERED."
The Facts
Respondent Asia Brewery, Inc., is engaged in the manufacture,
the distribution and sale of beer; while Petitioner Perla Zulueta
is a dealer and an operator of an outlet selling the former's beer
products. A Dealership Agreement governed their contractual
relations.
On March 30, 1992, petitioner filed before the Regional Trial
Court (RTC) of Iloilo, Branch 22, a Complaint against respondent
for Breach of Contract, Specific Performance and Damages. The
Complaint, docketed as Civil Case No. 20341 (hereafter referred
to as the "Iloilo case"), was grounded on the alleged violation of
the Dealership Agreement.
On July 7, 1994, during the pendency of the Iloilo case,
respondent filed with the Makati Regional Trial Court, Branch
66, a Complaint docketed as Civil Case No. 94-2110 (hereafter
referred to as the "Makati case"). The Complaint was for the
collection of a sum of money in the amount of P463,107.75
representing the value of beer products, which respondent had
delivered to petitioner.
In view of the pendency of the Iloilo case, petitioner moved to
dismiss the Makati case on the ground that it had split the cause
of action and violated the rule against the multiplicity of suits.
The Motion was denied by the Makati RTC through Judge
Eriberto U. Rosario.
Upon petitioner's Motion, however, Judge Rosario inhibited
himself. The case was raffled again and thereafter assigned to
Branch 142 of the Makati RTC, presided by Judge Jose Parentala
Jr.
The Issues
5
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Issue:
Petitioner avers that the Makati RTC's February 13, 1997 and
May 19, 1997 Orders consolidating the two cases could no
longer be assailed. Allegedly, respondent's Petition for
Certiorari was filed with the CA beyond the reglementary sixtyday period prescribed in the 1997 Revised Rules of Civil
Procedure, which took effect on July 1, 1997. Hence, the CA
should have dismissed it outright.
The records show that respondent received on May 23, 1997,
the Order denying its Motion for Reconsideration. It had,
according to petitioner, only sixty days or until July 22, 1997,
within which to file the Petition for Certiorari. It did so,
however, only on August 21, 1997.
On the other hand, respondent insists that its Petition was filed
on time, because the reglementary period before the effectivity
of the 1997 Rules was ninety days. It theorizes that the sixty-day
period under the 1997 Rules does not apply.
As a general rule, laws have no retroactive effect. But there are
certain recognized exceptions, such as when they are remedial
or procedural in nature. This Court explained this exception in
the following language:
"It is true that under the Civil Code of the Philippines,
"(l)aws shall have no retroactive effect, unless the
contrary is provided. But there are settled exceptions
to this general rule, such as when the statute is
CURATIVE or REMEDIAL in nature or when it CREATES
NEW RIGHTS.
xxx
xxx
xxx
CIVIL PROCEDURE
It is a well-established doctrine that rules of procedure may be
modified at any time to become effective at once, so long as the
11
change does not affect vested rights. Moreover, it is equally
axiomatic that there are no vested rights to rules of
12
procedure.
It also bears noting that the ninety-day limit established by
jurisprudence cannot be deemed a vested right. It is merely a
discretionary prerogative of the courts that may be exercised
depending on the peculiar circumstances of each case. Hence,
respondent was not entitled, as a matter of right, to the 90-day
period for filing a petition for certiorari; neither can it
imperiously demand that the same period be extended to it.
Upon the effectivity of the 1997 Revised Rules of Civil
Procedure on July 1, 1997, respondent's lawyers still had 21
days or until July 22, 1997 to file a petition for certiorari and to
comply with the sixty-day reglementary period. Had they been
more prudent and circumspect in regard to the implications of
these procedural changes, respondent's right of action would
not have been foreclosed. After all, the 1997 amendments to
the Rules of Court were well-publicized prior to their date of
effectivity. At the very least counsel should have asked for as
extension of time to file the petition.
Certification
Shopping Defective
of
Non-forum
for
CIVIL PROCEDURE
Two cases involving the same parties and affecting closely
related subject matters must be ordered consolidated and
18
jointly tried in court, where the earlier case was filed. The
consolidation of cases is proper when they involve the
19
resolution of common questions of law or facts.
Indeed, upon the consolidation of the cases, the interests of
both parties in the two civil cases will best be served and the
issues involved therein expeditiously settled. After all, there is
no question on the propriety of the venue in the Iloilo case.
WHEREFORE, the Petition is hereby GRANTED and the assailed
Decision REVERSED and SET ASIDE. The Orders of the Makati
RTC (Br. 142) dated February 13, 1997 and May 19, 1997 are
hereby REINSTATED. No costs.
SO ORDERED.
Issue:
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PARAS, J.:
This is a petition for certiorari with preliminary injunction to set
aside the Order dated December 21, 1967 in Civil Case No.
62320 of the Court of First Instance of Manila which cancelled
the notice of lis pendens annotated on the titles covering three
parcels of land.
Petitioners-plaintiffs filed an amended complaint praying,
among other things, for the annulment of a "Deed of Absolute
Sale" covering the said three parcels of land allegedly executed
on July 22, 1964 by their mother, Hilaria Isabelo Vda. de Tankeh,
in favor of their brother, respondent Clemente Tankeh and his
wife, who caused its execution without giving any price or
consideration therefor, and eventually obtaining new registered
titles in their names.
CIVIL PROCEDURE
allowed to file a bond, regardless of the amount, in substitution
of said notice. Moreover, the law does not authorize a judge to
cancel a notice of lis pendens pending litigation, upon the mere
filing of a sufficient bond by the party on whose title said notice
is annotated.
Section 24, Rule 14 of the Rules of Court expressly provides that
courts can cancel a notice of lis pendens only on two grounds:
(a) after a proper showing that the notice is for the purpose of
molesting the adverse party; or (b) it is not necessary to project
the interest of the party who caused it to be recorded. In the
case at bar, respondent spouses themselves manifested their
intent to temporarily encumber subject properties as security
for a loan required for their business. (p. 4, Rollo) Consequently,
annotation of the notice of lis pendens is essential, considering
that petitioners intend to preserve subject properties for
sentimental reasons, in case they are adjudged the lawful
owners thereof.
WHEREFORE, the assailed order directing the cancellation of the
notice of lis pendens is hereby ANNULLED or SET ASIDE and the
writ Of Preliminary injunction is hereby declared permanent.
SO ORDERED.
meikimouse