G.R. No. 170354 (June 30, 2006) 1. NO. The dismissal of the complaint due to the fault of plaintiff does not necessarily carry with it the dismissal of the counterclaim, compulsory or otherwise. In fact, the dismissal of the DOCTRINE: complaint is without prejudice to the right of defendants to prosecute the counterclaim. Rule 17, Section 3; Dismissal of Counterclaims RTC justified the dismissal of the counterclaim on the ground that "there is no The dismissal of the complaint due to the fault of plaintiff does not necessarily carry with it the opposition to [plaintiffs] Motion for Reconsideration [seeking the dismissal of the dismissal of the counterclaim, compulsory or otherwise. In fact, the dismissal of the complaint is counterclaim], but this is a hollow explanation. without prejudice to the right of defendants to prosecute the counterclaim. Rule 17, SEC. 3. Dismissal due to fault of plaintiff.If, for no justifiable cause, the plaintiff fails to EMERGENCY RECIT: appear on the date of the presentation of his evidence in chief on the complaint, or to prosecute Santiago Heirs filed a complaint against Pinga and Saavedra. Pinga filed Counterclaim. RTC his action for an unreasonable length of time, or to comply with these Rules or any order of the dismisses first complaint because of failure to prosecute for an unreasonable length of time. court, the complaint may be dismissed upon motion of defendant or upon the court's own RTC allows Pinga to present evidence ex- parte. Santiagos filed MR to disallow granted. Pinga motion, without prejudice to the right of the defendant to prosecute his counterclaim in the same files MR, but Santiagos file Opposition arguing that: the dismissal of the complaint carries with it or in a separate action. This dismissal shall have the effect of an adjudication upon the merits, the dismissal of the compulsory counterclaims. RTC agrees and denies Pingas MR. SC unless otherwise declared by the court. reverses; remands to RTC for for trial on the merits of the counterclaim (see doctrine). The dismissal of plaintiff's complaint is evidently a confirmation of the failure of FACTS: evidence to prove his cause of action outlined therein, hence the dismissal is Heirs of German Santiago, represented by Fernando Santiago, filed a complaint for considered, as a matter of evidence, an adjudication on the merits. This does not, injunction in the RTC of San Miguel, Zamboanga del Sur against Eduardo Pinga and however, mean that there is likewise such absence of evidence to prove Vicente Saavedra. defendant's counterclaim although the same arises out of the subject matter of o Defendants had been unlawfully entering the coco lands of the respondent, the complaint which was merely terminated for lack of proof. cutting wood and bamboos and harvesting the fruits of the coconut trees The complaint can accordingly be dismissed, but relief can nevertheless be granted as therein. a matter of course to defendant on his counterclaim as alleged and proved, with or o Respondents prayed that petitioner and Saavedra be enjoined from without any reservation therefor on his part, unless from his conduct, express or committing "acts of depredation" on their properties, and ordered to pay implied, he has virtually consented to the concomitant dismissal of his counterclaim. damages. The survival of the counterclaim despite the dismissal of the complaint under Section Pinga and Saavedras Answer with Counterclaim disputed respondents 3 stood irrespective of whether the counterclaim was permissive or compulsory. ownership/alleged forcible re-entry and damages (Php21,000 + costs of suit) Accordingly, the RTC clearly erred when it ordered the dismissal of the counterclaim, o Pingas father, Edmundo Pinga, from whom defendants derived their since Section 3, Rule 17 mandates that the dismissal of the complaint is without interest in the properties, had been in possession thereof since the 1930s. prejudice to the right of the defendant to prosecute the counterclaim in the same or o Respondents had already been ordered ejected from the properties after a separate action. If the RTC were to dismiss the counterclaim, it should be on the complaint for forcible entry was filed by the heirs of Edmundo Pinga merits of such counterclaim. Reversal of the RTC is in order, and a remand is o Respondents previous application for free patent over the properties was necessary for trial on the merits of the counterclaim. rejected RTC already ordered the dismissal of the complaint after Santiago Heirs counsel had WHEREFORE, the petition is GRANTED. sought the postponement of the hearing scheduled then. Reconsidered, but later on Santiago Heirs failed to present their evidence, and their counsel only sent a representative who sought postponement. o Counsel for Pingas opposed postponement, moved for dismissal. o The RTC noted that it was obvious that respondents had failed to prosecute the case for an unreasonable length of time. Complaint was dismissed. At the same time, the RTC allowed then-defendants (Pinga) "to present their evidence ex-parte." Respondents Santiago filed MR that their complaint be reinstated and that the petitioner be disallowed from presenting evidence ex-parte. GRANTED. (no opposition) Pingas filed MR, denied. o Santiagos filed an Opposition to Defendants Urgent Motion for Reconsideration, wherein they argued that the prevailing jurisprudential rule is that ... the dismissal of the complaint carries with it the dismissal of the compulsory counterclaims." Case elevated to SC by way of a Petition for Review under Rule 45.
ISSUE: 1. WON the dismissal of the complaint necessarily carries the dismissal of the compulsory counterclaim.