Cases Intro Civpro

8/15/2019 Cases Intro Civpro

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INTRODUCTION THE CITY OF MANILA, represented by MAYOR JOSE L. ATIENZA, JR., and MS. LIERTYM. TOLEDO, !n "er #apa#!ty as t"e C!ty Treas$rer %& Man!'a, (et!t!%ners,)s.HON. CARIDAD H. *RECIA+CUERDO, !n "er #apa#!ty as (res!d!n J$de %& t"eRe!%na' Tr!a' C%$rt, ran#" --, (asay C!ty/ SM MART, INC./ SM (RIME HOLDIN*S,INC./ STAR A((LIANCES CENTER/ SU(ER0ALUE, INC./ ACE HARD1ARE (HILI((INES,INC./ 1ATSON (ERSONAL CARE STORES, (HILS., INC./ JOLLIMART (HILS., COR(./SUR(LUS MAR2ETIN* COR(ORATION and SI*NATURE LINES, Resp%ndents.

D E C I S I O N

(ERALTA, J.3

e&%re t"e C%$rt !s a spe#!a' #!)!' a#t!%n &%r #ert!%rar! $nder R$'e 45 %& t"e R$'es %&C%$rt see6!n t% re)erse and set as!de t"e Res%'$t!%ns- dated Apr!' 4, 774 andN%)e8ber 9, 774 %& t"e C%$rt %& Appea's :CA; !n CA+*.R. S( N%. <=9><.

T"e ante#edents %& t"e #ase, as s$88ar!?ed by t"e CA, are as &%''%@s3

T"e re#%rd s"%@s t"at pet!t!%ner C!ty %& Man!'a, t"r%$" !ts treas$rer, pet!t!%nerL!berty T%'ed%, assessed taes &%r t"e taab'e per!%d &r%8 Jan$ary t% De#e8ber77 aa!nst pr!)ate resp%ndents SM Mart, In#., SM (r!8e H%'d!ns, In#., StarApp'!an#es Center, S$per)a'$e, In#., A#e Hard@are ("!'!pp!nes, In#., 1ats%ns(ers%na' Care St%res ("!'s., In#., J%''!8art ("!'!pp!nes C%rp., S$rp'$s Mar6et!n C%rp.

and S!nat$re L!nes. In add!t!%n t% t"e taes p$rp%rted'y d$e &r%8 pr!)ateresp%ndents p$rs$ant t% Se#t!%n ->, -5, -4, -= %& t"e Re)!sed Re)en$e C%de %&Man!'a :RRCM;, sa!d assess8ent #%)ered t"e '%#a' b$s!ness taes pet!t!%ners @erea$t"%r!?ed t% #%''e#t $nder Se#t!%n - %& t"e sa8e C%de. e#a$se pay8ent %& t"etaes assessed @as a pre#%nd!t!%n &%r t"e !ss$an#e %& t"e!r b$s!ness per8!ts, pr!)ateresp%ndents @ere #%nstra!ned t% pay t"e (-9,B-4,>5<.== assess8ent $nder pr%test.

On Jan$ary >, 77>, pr!)ate resp%ndents 'ed @!t" t"e Re!%na' Tr!a' C%$rt %&(asay C!ty t"e #%8p'a!nt den%8!nated as %ne &%r Re&$nd %r Re#%)ery %& I''ea''yandG%r Err%ne%$s'y+C%''e#ted L%#a' $s!ness Ta, (r%"!b!t!%n @!t" (rayer t% Iss$e TROand 1r!t %& (re'!8!nary In$n#t!%n

@"!#" @as d%#6eted as C!)!' Case N%. 7>+77-9+CFM be&%re p$b'!# resp%ndents sa'aat ran#" --. In t"e a8ended #%8p'a!nt t"ey 'ed %n Febr$ary -4, 77>, pr!)ateresp%ndents a''eed t"at, !n re'at!%n t% Se#t!%n - t"ere%&, Se#t!%ns ->, -5, -4, -=,

-<, -9 and 7 %& t"e RRCM @ere )!%'at!)e %& t"e '!8!tat!%ns and $!de'!nes $nderSe#t!%n ->B :"; %& Rep$b'!# A#t. N%. =-47 L%#a' *%)ern8ent C%de %n d%$b'etaat!%n. T"ey &$rt"er a)erred t"at pet!t!%ner #!tys Ord!nan#e N%. <7-- @"!#"a8ended pert!nent p%rt!%ns %& t"e RRCM "ad a'ready been de#'ared t% be !''ea' and$n#%nst!t$t!%na' by t"e Depart8ent %& J$st!#e.

In !ts OrderB dated J$'y 9, 77>, t"e RTC ranted pr!)ate resp%ndents app'!#at!%n &%ra @r!t %& pre'!8!nary !n$n#t!%n.

(et!t!%ners 'ed a M%t!%n &%r Re#%ns!derat!%n> b$t t"e RTC den!ed !t !n !ts Order5dated O#t%ber -5, 77>.

(et!t!%ners t"en 'ed a spe#!a' #!)!' a#t!%n &%r #ert!%rar! @!t" t"e CA assa!'!n t"e J$'y9, 77> and O#t%ber -5, 77> Orders %& t"e RTC.4

In !ts Res%'$t!%n pr%8$'ated %n Apr!' 4, 774, t"e CA d!s8!ssed pet!t!%ners pet!t!%n&%r #ert!%rar! "%'d!n t"at !t "as n% $r!sd!#t!%n %)er t"e sa!d pet!t!%n. T"e CA r$'edt"at s!n#e appe''ate $r!sd!#t!%n %)er pr!)ate resp%ndents #%8p'a!nt &%r ta re&$nd,@"!#" @as 'ed @!t" t"e RTC, !s )ested !n t"e C%$rt %& Ta Appea's :CTA;, p$rs$ant t%!ts epanded $r!sd!#t!%n $nder Rep$b'!# A#t N%. 9< :RA 9<;, !t &%''%@s t"at apet!t!%n &%r #ert!%rar! see6!n n$''!#at!%n %& an !nter'%#$t%ry %rder !ss$ed !n t"e sa!d#ase s"%$'d, '!6e@!se, be 'ed @!t" t"e CTA.

(et!t!%ners 'ed a M%t!%n &%r Re#%ns!derat!%n,= b$t t"e CA den!ed !t !n !ts Res%'$t!%ndated N%)e8ber 9, 774.

Hen#e, t"e present pet!t!%n ra!s!n t"e &%''%@!n !ss$es3

I+ 1"et"er %r n%t t"e H%n%rab'e C%$rt %& Appea's ra)e'y erred !n d!s8!ss!n t"e#ase &%r 'a#6 %& $r!sd!#t!%n.

II+ 1"et"er %r n%t t"e H%n%rab'e Re!%na' Tr!a' C%$rt ra)e'y ab$sed !ts d!s#ret!%na8%$nt!n t% 'a#6 %r e#ess %& $r!sd!#t!%n !n en%!n!n by !ss$!n a 1r!t %& In$n#t!%nt"e pet!t!%ners, t"e!r aents andG%r a$t"%r!?ed representat!)es &r%8 !8p'e8ent!nSe#t!%n - %& t"e Re)!sed Re)en$e C%de %& Man!'a, as a8ended, aa!nst pr!)ateresp%ndents.

III+ 1"et"er %r n%t t"e H%n%rab'e Re!%na' Tr!a' C%$rt ra)e'y ab$sed !ts d!s#ret!%n

a8%$nt!n t% 'a#6 %r e#ess %& $r!sd!#t!%n !n !ss$!n t"e 1r!t %& In$n#t!%n desp!te&a!'$re %& pr!)ate resp%ndents t% 8a6e a @r!tten #'a!8 &%r ta #red!t %r re&$nd @!t"t"e C!ty Treas$rer %& Man!'a.

I0+ 1"et"er %r n%t t"e H%n%rab'e Re!%na' Tr!a' C%$rt ra)e'y ab$sed !ts d!s#ret!%na8%$nt!n t% 'a#6 %r e#ess %& $r!sd!#t!%n #%ns!der!n t"at $nder Se#t!%n - %& t"eMan!'a Re)en$e C%de, as a8ended, t"ey are 8ere #%''e#t!n aents %& t"e C!ty*%)ern8ent.

0+ 1"et"er %r n%t t"e H%n%rab'e Re!%na' Tr!a' C%$rt ra)e'y ab$sed !ts d!s#ret!%na8%$nt!n t% 'a#6 %r e#ess %& $r!sd!#t!%n !n !ss$!n t"e 1r!t %& In$n#t!%n be#a$sepet!t!%ner C!ty %& Man!'a and !ts #%nst!t$ents @%$'d res$'t t% reater da8ae andpre$d!#e t"ere%&. :s!#;<

1!t"%$t rst res%')!n t"e ab%)e !ss$es, t"!s C%$rt nds t"at t"e !nstant pet!t!%n

s"%$'d be den!ed &%r be!n 8%%t and a#ade8!#.

Up%n per$sa' %& t"e %r!!na' re#%rds %& t"e !nstant #ase, t"!s C%$rt d!s#%)ered t"at aDe#!s!%n9 !n t"e 8a!n #ase "ad a'ready been rendered by t"e RTC %n A$$st -B,77=, t"e d!sp%s!t!)e p%rt!%n %& @"!#" reads as &%''%@s3

1HEREFORE, !n )!e@ %& t"e &%re%!n, t"!s C%$rt "ereby renders JUD*MENT !n &a)%r%& t"e p'a!nt! and aa!nst t"e de&endant t% rant a ta re&$nd %r #red!t &%r taespa!d p$rs$ant t% Se#t!%n - %& t"e Re)en$e C%de %& t"e C!ty %& Man!'a as a8ended&%r t"e year 77 !n t"e &%''%@!n a8%$nts3

T% p'a!nt! SM Mart, In#. + ( --,>4,55.7 T% p'a!nt! SM (r!8e H%'d!ns, In#. + B,--<,-7>.4B T% p'a!nt! Star App'!an#es Center + ,-5,B-4.5>

-



INTRODUCTION T% p'a!nt! S$per)a'$e, In#. + -,B4,=57.B> T% p'a!nt! A#e Hard@are ("!'s., In#. + >-9,4<9.7> T% p'a!nt! 1ats%ns (ers%na' Care Hea't" + B-,>5B.4St%res ("!'s., In#.

T% p'a!nt! J%''!8art ("!'s., C%rp. + ->7,97<.5> T% p'a!nt! S$rp'$s Mar6et!n C%rp. + 7,7>.=7 T% p'a!nt! S!nat$re M6t. C%rp. + 9>,974.B> TOTAL3 + ( -9,B-4,>5<.==De&endants are &$rt"er en%!ned &r%8 #%''e#t!n taes $nder Se#t!%n -, Re)en$e

C%de %& Man!'a &r%8 "ere!n p'a!nt!.

SO ORDERED.-7

T"e part!es d!d n%t !n&%r8 t"e C%$rt b$t based %n t"e re#%rds, t"e ab%)e De#!s!%n"ad a'ready be#%8e na' and ee#$t%ry per t"e Cert!#ate %& F!na'!ty-- !ss$ed byt"e sa8e tr!a' #%$rt %n O#t%ber 7, 77<. In &a#t, a 1r!t %& Ee#$t!%n- @as !ss$edby t"e RTC %n N%)e8ber 5, 779. In )!e@ %& t"e &%re%!n, !t #'ear'y appears t"att"e !ss$es ra!sed !n t"e present pet!t!%n, @"!#" 8ere'y !n)%')e t"e !n#!dent %n t"epre'!8!nary !n$n#t!%n !ss$ed by t"e RTC, "a)e a'ready be#%8e 8%%t and a#ade8!##%ns!der!n t"at t"e tr!a' #%$rt, !n !ts de#!s!%n %n t"e 8er!ts !n t"e 8a!n #ase, "asa'ready r$'ed !n &a)%r %& resp%ndents and t"at t"e sa8e de#!s!%n !s n%@ na' andee#$t%ry. 1e'' entren#"ed !s t"e r$'e t"at @"ere t"e !ss$es "a)e be#%8e 8%%t anda#ade8!#, t"ere !s n% $st!#!ab'e #%ntr%)ersy, t"ereby render!n t"e res%'$t!%n %& t"esa8e %& n% pra#t!#a' $se %r )a'$e.-B

In any #ase, t"e C%$rt nds !t ne#essary t% res%')e t"e !ss$e %n $r!sd!#t!%n ra!sed bypet!t!%ners %@!n t% !ts s!n!#an#e and &%r &$t$re $!dan#e %& b%t" ben#" and bar. It!s a sett'ed pr!n#!p'e t"at #%$rts @!'' de#!de a K$est!%n %t"er@!se 8%%t and a#ade8!#!& !t !s #apab'e %& repet!t!%n, yet e)ad!n re)[email protected]>

H%@e)er, be&%re pr%#eed!n, t% res%')e t"e K$est!%n %n $r!sd!#t!%n, t"e C%$rtdee8s !t pr%per t% '!6e@!se address a pr%#ed$ra' err%r @"!#" pet!t!%ners #%88!tted.

(et!t!%ners a)a!'ed %& t"e @r%n re8edy @"en t"ey 'ed t"e !nstant spe#!a' #!)!'a#t!%n &%r #ert!%rar! $nder R$'e 45 %& t"e R$'es %& C%$rt !n assa!'!n t"e Res%'$t!%ns%& t"e CA @"!#" d!s8!ssed t"e!r pet!t!%n 'ed @!t" t"e sa!d #%$rt and t"e!r 8%t!%n &%rre#%ns!derat!%n %& s$#" d!s8!ssa'. T"ere !s n% d!sp$te t"at t"e assa!'ed Res%'$t!%ns%& t"e CA are !n t"e nat$re %& a na' %rder as t"ey d!sp%sed %& t"e pet!t!%n#%8p'ete'y. It !s sett'ed t"at !n #ases @"ere an assa!'ed $d8ent %r %rder !s

#%ns!dered na', t"e re8edy %& t"e ar!e)ed party !s appea'. Hen#e, !n t"e !nstant#ase, pet!t!%ner s"%$'d "a)e 'ed a pet!t!%n &%r re)!e@ %n #ert!%rar! $nder R$'e >5,@"!#" !s a #%nt!n$at!%n %& t"e appe''ate pr%#ess %)er t"e %r!!na' #ase.-5

(et!t!%ners s"%$'d be re8!nded %& t"e eK$a''y+sett'ed r$'e t"at a spe#!a' #!)!' a#t!%n&%r #ert!%rar! $nder R$'e 45 !s an %r!!na' %r !ndependent a#t!%n based %n ra)eab$se %& d!s#ret!%n a8%$nt!n t% 'a#6 %r e#ess %& $r!sd!#t!%n and !t @!'' '!e %n'y !&t"ere !s n% appea' %r any %t"er p'a!n, speedy, and adeK$ate re8edy !n t"e %rd!nary#%$rse %& '[email protected] As s$#", !t #ann%t be a s$bst!t$te &%r a '%st appea'.-=

N%net"e'ess, !n a##%rdan#e @!t" t"e '!bera' sp!r!t per)ad!n t"e R$'es %& C%$rt and !nt"e !nterest %& s$bstant!a' $st!#e, t"!s C%$rt "as, be&%re, treated a pet!t!%n &%r#ert!%rar! as a pet!t!%n &%r re)!e@ %n #ert!%rar!, part!#$'ar'y :-; !& t"e pet!t!%n &%r#ert!%rar! @as 'ed @!t"!n t"e re'e8entary per!%d @!t"!n @"!#" t% 'e a pet!t!%n &%r

re)!e@ %n #ert!%rar!/ :; @"en err%rs %& $d8ent are a)erred/ and :B; @"en t"ere !ss$#!ent reas%n t% $st!&y t"e re'aat!%n %& t"e r$'es.-< C%ns!der!n t"at t"e presentpet!t!%n @as 'ed @!t"!n t"e -5+day re'e8entary per!%d &%r '!n a pet!t!%n &%rre)!e@ %n #ert!%rar! $nder R$'e >5, t"at an err%r %& $d8ent !s a)erred, andbe#a$se %& t"e s!n!#an#e %& t"e !ss$e %n $r!sd!#t!%n, t"e C%$rt dee8s !t pr%perand $st!ed t% re'a t"e r$'es and, t"$s, treat t"e !nstant pet!t!%n &%r #ert!%rar! as apet!t!%n &%r re)!e@ %n #ert!%rar!.

Ha)!n d!sp%sed %& t"e pr%#ed$ra' aspe#t, @e n%@ t$rn t% t"e #entra' !ss$e !n t"!s

#ase. T"e bas!# K$est!%n p%sed be&%re t"!s C%$rt !s @"et"er %r n%t t"e CTA "as $r!sd!#t!%n %)er a spe#!a' #!)!' a#t!%n &%r #ert!%rar! assa!'!n an !nter'%#$t%ry %rder!ss$ed by t"e RTC !n a '%#a' ta #ase.

T"!s C%$rt r$'es !n t"e ar8at!)e.

On J$ne -4, -95>, C%nress ena#ted Rep$b'!# A#t N%. --5 :RA --5; #reat!n t"eCTA and !)!n t% t"e sa!d #%$rt $r!sd!#t!%n %)er t"e &%''%@!n3

:-; De#!s!%ns %& t"e C%''e#t%r %& Interna' Re)en$e !n #ases !n)%')!n d!sp$tedassess8ents, re&$nds %& !nterna' re)en$e taes, &ees %r %t"er #"ares, pena't!es!8p%sed !n re'at!%n t"eret%, %r %t"er 8atters ar!s!n $nder t"e Nat!%na' Interna'Re)en$e C%de %r %t"er 'a@ %r part %& 'a@ ad8!n!stered by t"e $rea$ %& Interna'Re)en$e/

:; De#!s!%ns %& t"e C%88!ss!%ner %& C$st%8s !n #ases !n)%')!n '!ab!'!ty &%r #$st%8sd$t!es, &ees %r %t"er 8%ney #"ares/ se!?$re, detent!%n %r re'ease %& pr%pertyae#ted nes, &%r&e!t$res %r %t"er pena't!es !8p%sed !n re'at!%n t"eret%/ %r %t"er8atters ar!s!n $nder t"e C$st%8s La@ %r %t"er 'a@ %r part %& 'a@ ad8!n!stered byt"e $rea$ %& C$st%8s/ and

:B; De#!s!%ns %& pr%)!n#!a' %r C!ty %ards %& Assess8ent Appea's !n #ases !n)%')!nt"e assess8ent and taat!%n %& rea' pr%perty %r %t"er 8atters ar!s!n $nder t"eAssess8ent La@, !n#'$d!n r$'es and re$'at!%ns re'at!)e t"eret%.

On Mar#" B7, 77>, t"e Le!s'at$re passed !nt% 'a@ Rep$b'!# A#t N%. 9< :RA 9<;a8end!n RA --5 by epand!n t"e $r!sd!#t!%n %& t"e CTA, en'ar!n !ts8e8bers"!p and e'e)at!n !ts ran6 t% t"e 'e)e' %& a #%''e!ate #%$rt @!t" spe#!a'

$r!sd!#t!%n. (ert!nent p%rt!%ns %& t"e a8endat%ry a#t pr%)!des t"$s3

Se#. =. J$r!sd!#t!%n. + T"e CTA s"a'' eer#!se3

a. E#'$s!)e appe''ate $r!sd!#t!%n t% re)!e@ by appea', as "ere!n pr%)!ded3

-. De#!s!%ns %& t"e C%88!ss!%ner %& Interna' Re)en$e !n #ases !n)%')!n d!sp$tedassess8ents, re&$nds %& !nterna' re)en$e taes, &ees %r %t"er #"ares, pena't!es !nre'at!%n t"eret%, %r %t"er 8atters ar!s!n $nder t"e Nat!%na' Interna' Re)en$e %r%t"er 'a@s ad8!n!stered by t"e $rea$ %& Interna' Re)en$e/

. Ina#t!%n by t"e C%88!ss!%ner %& Interna' Re)en$e !n #ases !n)%')!n d!sp$tedassess8ents, re&$nds %& !nterna' re)en$e taes, &ees %r %t"er #"ares, pena't!es !nre'at!%ns t"eret%, %r %t"er 8atters ar!s!n $nder t"e Nat!%na' Interna' Re)en$e C%de%r %t"er 'a@s ad8!n!stered by t"e $rea$ %& Interna' Re)en$e, @"ere t"e Nat!%na'





INTRODUCTION

T"e &%re%!n n%t@!t"stand!n, @"!'e t"ere !s n% epress rant %& s$#" p%@er, @!t"respe#t t% t"e CTA, Se#t!%n -, Art!#'e 0III %& t"e -9<= C%nst!t$t!%n pr%)!des,n%net"e'ess, t"at $d!#!a' p%@er s"a'' be )ested !n %ne S$pre8e C%$rt and !n s$#"'%@er #%$rts as 8ay be estab'!s"ed by 'a@ and t"at $d!#!a' p%@er !n#'$des t"e d$ty%& t"e #%$rts %& $st!#e t% sett'e a#t$a' #%ntr%)ers!es !n)%')!n r!"ts @"!#" are'ea''y de8andab'e and en&%r#eab'e, and t% deter8!ne @"et"er %r n%t t"ere "asbeen a ra)e ab$se %& d!s#ret!%n a8%$nt!n t% 'a#6 %r e#ess %& $r!sd!#t!%n %n t"epart %& any bran#" %r !nstr$8enta'!ty %& t"e *%)ern8ent.

On t"e strent" %& t"e ab%)e #%nst!t$t!%na' pr%)!s!%ns, !t #an be &a!r'y !nterpretedt"at t"e p%@er %& t"e CTA !n#'$des t"at %& deter8!n!n @"et"er %r n%t t"ere "asbeen ra)e ab$se %& d!s#ret!%n a8%$nt!n t% 'a#6 %r e#ess %& $r!sd!#t!%n %n t"epart %& t"e RTC !n !ss$!n an !nter'%#$t%ry %rder !n #ases &a''!n @!t"!n t"e e#'$s!)eappe''ate $r!sd!#t!%n %& t"e ta #%$rt. It, t"$s, &%''%@s t"at t"e CTA, by #%nst!t$t!%na'8andate, !s )ested @!t" $r!sd!#t!%n t% !ss$e @r!ts %& #ert!%rar! !n t"ese #ases.

Indeed, !n %rder &%r any appe''ate #%$rt t% ee#t!)e'y eer#!se !ts appe''ate $r!sd!#t!%n, !t 8$st "a)e t"e a$t"%r!ty t% !ss$e, a8%n %t"ers, a @r!t %& #ert!%rar!. Intrans&err!n e#'$s!)e $r!sd!#t!%n %)er appea'ed ta #ases t% t"e CTA, !t #anreas%nab'y be ass$8ed t"at t"e 'a@ !ntended t% trans&er a's% s$#" p%@er as !sdee8ed ne#essary, !& n%t !nd!spensab'e, !n a!d %& s$#" appe''ate $r!sd!#t!%n. T"ere !sn% per#e!)ab'e reas%n @"y t"e trans&er s"%$'d %n'y be #%ns!dered as part!a', n%tt%ta'.

C%ns!stent @!t" t"e ab%)e pr%n%$n#e8ent, t"!s C%$rt "as "e'd as ear'y as t"e #ase%& J.M. T$as%n C%., In#. ). Jara8!''%, et a'.9 t"at !& a #ase 8ay be appea'ed t% apart!#$'ar #%$rt %r $d!#!a' tr!b$na' %r b%dy, t"en sa!d #%$rt %r $d!#!a' tr!b$na' %rb%dy "as $r!sd!#t!%n t% !ss$e t"e etra%rd!nary @r!t %& #ert!%rar!, !n a!d %& !tsappe''ate $r!sd!#t!%n.B7 T"!s pr!n#!p'e @as ar8ed !n De Jes$s ). C%$rt %&Appea's,B- @"ere t"e C%$rt stated t"at a #%$rt 8ay !ss$e a @r!t %& #ert!%rar! !n a!d%& !ts appe''ate $r!sd!#t!%n !& sa!d #%$rt "as $r!sd!#t!%n t% re)!e@, by appea' %r @r!t%& err%r, t"e na' %rders %r de#!s!%ns %& t"e '%@er #%$rt.B T"e r$'!ns !n J.M. T$as%nand De Jes$s @ere re!terated !n t"e 8%re re#ent #ases %& *a'an, Jr. ). *er%n!8%BBand $'!'!s ). N$e?.B>

F$rt"er8%re, Se#t!%n 4, R$'e -B5 %& t"e present R$'es %& C%$rt pr%)!des t"at @"en by'a@, $r!sd!#t!%n !s #%n&erred %n a #%$rt %r $d!#!a' %#er, a'' a$!'!ary @r!ts,pr%#esses and %t"er 8eans ne#essary t% #arry !t !nt% ee#t 8ay be e8p'%yed by

s$#" #%$rt %r %#er.

I& t"!s C%$rt @ere t% s$sta!n pet!t!%ners #%ntent!%n t"at $r!sd!#t!%n %)er t"e!r#ert!%rar! pet!t!%n '!es @!t" t"e CA, t"!s C%$rt @%$'d be #%nr8!n t"e eer#!se byt@% $d!#!a' b%d!es, t"e CA and t"e CTA, %& $r!sd!#t!%n %)er bas!#a''y t"e sa8es$be#t 8atter pre#!se'y t"e sp'!t+$r!sd!#t!%n s!t$at!%n @"!#" !s anat"e8a t% t"e%rder'y ad8!n!strat!%n %& $st!#e.B5 T"e C%$rt #ann%t a##ept t"at s$#" @as t"e'e!s'at!)e 8%t!)e, espe#!a''y #%ns!der!n t"at t"e 'a@ epress'y #%n&ers %n t"e CTA,t"e tr!b$na' @!t" t"e spe#!a'!?ed #%8peten#e %)er ta and tar! 8atters, t"e r%'e %&

$d!#!a' re)!e@ %)er '%#a' ta #ases @!t"%$t 8ent!%n %& any %t"er #%$rt t"at 8ayeer#!se s$#" p%@er. T"$s, t"e C%$rt arees @!t" t"e r$'!n %& t"e CA t"at s!n#eappe''ate $r!sd!#t!%n %)er pr!)ate resp%ndents #%8p'a!nt &%r ta re&$nd !s )ested !nt"e CTA, !t &%''%@s t"at a pet!t!%n &%r #ert!%rar! see6!n n$''!#at!%n %& an!nter'%#$t%ry %rder !ss$ed !n t"e sa!d #ase s"%$'d, '!6e@!se, be 'ed @!t" t"e sa8e

#%$rt. T% r$'e %t"er@!se @%$'d 'ead t% an abs$rd s!t$at!%n @"ere %ne #%$rt de#!desan appea' !n t"e 8a!n #ase @"!'e an%t"er #%$rt r$'es %n an !n#!dent !n t"e )ery sa8e#ase.

Stated d!erent'y, !t @%$'d be s%8e@"at !n#%nr$ent @!t" t"e pr%n%$n#ed $d!#!a'ab"%rren#e t% sp'!t $r!sd!#t!%n t% #%n#'$de t"at t"e !ntent!%n %& t"e 'a@ !s t% d!)!det"e a$t"%r!ty %)er a '%#a' ta #ase 'ed @!t" t"e RTC by !)!n t% t"e CA %r t"!s C%$rt

$r!sd!#t!%n t% !ss$e a @r!t %& #ert!%rar! aa!nst !nter'%#$t%ry %rders %& t"e RTC b$t!)!n t% t"e CTA t"e $r!sd!#t!%n %)er t"e appea' &r%8 t"e de#!s!%n %& t"e tr!a' #%$rt

!n t"e sa8e #ase. It !s 8%re !n #%ns%nan#e @!t" '%!# and 'ea' s%$ndness t%#%n#'$de t"at t"e rant %& appe''ate $r!sd!#t!%n t% t"e CTA %)er ta #ases 'ed !nand de#!ded by t"e RTC #arr!es @!t" !t t"e p%@er t% !ss$e a @r!t %& #ert!%rar! @"enne#essary !n a!d %& s$#" appe''ate $r!sd!#t!%n. T"e s$per)!s%ry p%@er %r $r!sd!#t!%n%& t"e CTA t% !ss$e a @r!t %& #ert!%rar! !n a!d %& !ts appe''ate $r!sd!#t!%n s"%$'d #%+e!st @!t", and be a #%8p'e8ent t%, !ts appe''ate $r!sd!#t!%n t% re)!e@, by appea',t"e na' %rders and de#!s!%ns %& t"e RTC, !n %rder t% "a)e #%8p'ete s$per)!s!%n %)ert"e a#ts %& t"e 'atter.B4

A rant %& appe''ate $r!sd!#t!%n !8p'!es t"at t"ere !s !n#'$ded !n !t t"e p%@erne#essary t% eer#!se !t ee#t!)e'y, t% 8a6e a'' %rders t"at @!'' preser)e t"e s$be#t%& t"e a#t!%n, and t% !)e ee#t t% t"e na' deter8!nat!%n %& t"e appea'. It #arr!es@!t" !t t"e p%@er t% pr%te#t t"at $r!sd!#t!%n and t% 8a6e t"e de#!s!%ns %& t"e #%$rtt"ere$nder ee#t!)e. T"e #%$rt, !n a!d %& !ts appe''ate $r!sd!#t!%n, "as a$t"%r!ty t%#%ntr%' a'' a$!'!ary and !n#!denta' 8atters ne#essary t% t"e e#!ent and pr%per

eer#!se %& t"at $r!sd!#t!%n.-@p"!- F%r t"!s p$rp%se, !t 8ay, @"en ne#essary,pr%"!b!t %r restra!n t"e per&%r8an#e %& any a#t @"!#" 8!"t !nter&ere @!t" t"e pr%pereer#!se %& !ts r!"t&$' $r!sd!#t!%n !n #ases pend!n be&%re !t.B=

Last'y, !t @%$'d n%t be a8!ss t% p%!nt %$t t"at a #%$rt @"!#" !s end%@ed @!t" apart!#$'ar $r!sd!#t!%n s"%$'d "a)e p%@ers @"!#" are ne#essary t% enab'e !t t% a#tee#t!)e'y @!t"!n s$#" $r!sd!#t!%n. T"ese s"%$'d be rearded as p%@ers @"!#" are!n"erent !n !ts $r!sd!#t!%n and t"e #%$rt 8$st p%ssess t"e8 !n %rder t% en&%r#e !tsr$'es %& pra#t!#e and t% s$ppress any ab$ses %& !ts pr%#ess and t% de&eat anyatte8pted t"@art!n %& s$#" pr%#ess.

In t"!s reard, Se#t!%n - %& RA 9< states t"at t"e CTA s"a'' be %& t"e sa8e 'e)e' ast"e CA and s"a'' p%ssess a'' t"e !n"erent p%@ers %& a #%$rt %& $st!#e.

Indeed, #%$rts p%ssess #erta!n !n"erent p%@ers @"!#" 8ay be sa!d t% be !8p'!ed

&r%8 a enera' rant %& $r!sd!#t!%n, !n add!t!%n t% t"%se epress'y #%n&erred %nt"e8. T"ese !n"erent p%@ers are s$#" p%@ers as are ne#essary &%r t"e %rd!nary ande#!ent eer#!se %& $r!sd!#t!%n/ %r are essent!a' t% t"e e!sten#e, d!n!ty and&$n#t!%ns %& t"e #%$rts, as @e'' as t% t"e d$e ad8!n!strat!%n %& $st!#e/ %r are d!re#t'yappr%pr!ate, #%n)en!ent and s$!tab'e t% t"e ee#$t!%n %& t"e!r ranted p%@ers/ and!n#'$de t"e p%@er t% 8a!nta!n t"e #%$rts $r!sd!#t!%n and render !t ee#t!)e !n be"a'& %& t"e '!t!ants.B<

T"$s, t"!s C%$rt "as "e'd t"at @"!'e a #%$rt 8ay be epress'y ranted t"e !n#!denta'p%@ers ne#essary t% ee#t$ate !ts $r!sd!#t!%n, a rant %& $r!sd!#t!%n, !n t"e absen#e%& pr%"!b!t!)e 'e!s'at!%n, !8p'!es t"e ne#essary and $s$a' !n#!denta' p%@ersessent!a' t% ee#t$ate !t, and, s$be#t t% e!st!n 'a@s and #%nst!t$t!%na' pr%)!s!%ns,e)ery re$'ar'y #%nst!t$ted #%$rt "as p%@er t% d% a'' t"!ns t"at are reas%nab'yne#essary &%r t"e ad8!n!strat!%n %& $st!#e @!t"!n t"e s#%pe %& !ts $r!sd!#t!%n and &%r

>



INTRODUCTIONt"e en&%r#e8ent %& !ts $d8ents and 8andates.B9 Hen#e, de8ands, 8atters %rK$est!%ns an#!''ary %r !n#!denta' t%, %r r%@!n %$t %&, t"e 8a!n a#t!%n, and #%8!n@!t"!n t"e ab%)e pr!n#!p'es, 8ay be ta6en #%n!?an#e %& by t"e #%$rt anddeter8!ned, s!n#e s$#" $r!sd!#t!%n !s !n a!d %& !ts a$t"%r!ty %)er t"e pr!n#!pa' 8atter,e)en t"%$" t"e #%$rt 8ay t"$s be #a''ed %n t% #%ns!der and de#!de 8atters @"!#",as %r!!na' #a$ses %& a#t!%n, @%$'d n%t be @!t"!n !ts #%n!?an#e.>7

ased %n t"e &%re%!n d!sK$!s!t!%ns, !t #an be reas%nab'y #%n#'$ded t"at t"ea$t"%r!ty %& t"e CTA t% ta6e #%n!?an#e %& pet!t!%ns &%r #ert!%rar! K$est!%n!n

!nter'%#$t%ry %rders !ss$ed by t"e RTC !n a '%#a' ta #ase !s !n#'$ded !n t"e p%@ersranted by t"e C%nst!t$t!%n as @e'' as !n"erent !n t"e eer#!se %& !ts appe''ate $r!sd!#t!%n.

F!na''y, !t @%$'d bear t% p%!nt %$t t"at t"!s C%$rt !s n%t aband%n!n t"e r$'e t"at,!ns%&ar as K$as!+$d!#!a' tr!b$na's are #%n#erned, t"e a$t"%r!ty t% !ss$e @r!ts %&#ert!%rar! 8$st st!'' be epress'y #%n&erred by t"e C%nst!t$t!%n %r by 'a@ and #ann%tbe !8p'!ed &r%8 t"e 8ere e!sten#e %& t"e!r appe''ate $r!sd!#t!%n. T"!s d%#tr!nere8a!ns as !t app'!es %n'y t% K$as!+$d!#!a' b%d!es.

1HEREFORE, t"e pet!t!%n !s DENIED.

*.R. N%. -<->-4 N%)e8ber --, 7-B

MEDICAL (LAZA MA2ATI CONDOMINIUM COR(ORATION, (et!t!%ner,

)s.ROERT H. CULLEN, Resp%ndent.

D E C I S I O N

(ERALTA, J.3

T"!s !s a pet!t!%n &%r re)!e@ %n #ert!%rar! $nder R$'e >5 %& t"e R$'es %& C%$rt assa!'!nt"e C%$rt %& Appea's :CA; De#!s!%n- dated J$'y -7, 77= and Res%'$t!%n dated

Jan$ary 5, 77< !n CA+*.R. C0 N%. <44->. T"e assa!'ed de#!s!%n re)ersed and setas!de t"e Septe8ber 9, 775 OrderB %& t"e Re!%na' Tr!a' C%$rt :RTC; %& Ma6at!,ran#" 5< !n C!)!' Case N%. 7B+-7-</ @"!'e t"e assa!'ed res%'$t!%n den!ed t"eseparate 8%t!%ns &%r re#%ns!derat!%n 'ed by pet!t!%ner Med!#a' ('a?a Ma6at!C%nd%8!n!$8 C%rp%rat!%n :M(MCC; and Mer!d!en Land H%'d!n, In#. :MLHI;.

T"e &a#t$a' and pr%#ed$ra' ante#edents are as &%''%@s3

Resp%ndent R%bert H. C$''en p$r#"ased &r%8 MLHI #%nd%8!n!$8 Un!t N%. -7- %&t"e Med!#a' ('a?a Ma6at! #%)ered by C%nd%8!n!$8 Cert!#ate %& T!t'e N%. >5<7< %&t"e Re!ster %& Deeds %& Ma6at!. Sa!d t!t'e @as 'ater #an#e''ed and C%nd%8!n!$8Cert!#ate %& T!t'e N%. 4>-< @as !ss$ed !n t"e na8e %& resp%ndent.

On Septe8ber -9, 77, pet!t!%ner, t"r%$" !ts #%rp%rate se#retary, Dr. J%se*!%)ann! E. D!8ay$a, de8anded &r%8 resp%ndent pay8ent &%r a''eed $npa!dass%#!at!%n d$es and assess8ents a8%$nt!n t% (->5,54=.>. Resp%ndent d!sp$tedt"!s de8and #'a!8!n t"at "e "ad been re'!!%$s'y pay!n "!s d$es s"%@n by t"e &a#tt"at "e @as pre)!%$s'y e'e#ted pres!dent and d!re#t%r %& pet!t!%ner.> (et!t!%ner, %nt"e %t"er "and, #'a!8ed t"at resp%ndentPs %b'!at!%n @as a #arry+%)er %& t"at %&MLHI.5 C%nseK$ent'y, resp%ndent @as pre)ented &r%8 eer#!s!n "!s r!"t t% )%te

and be )%ted &%r d$r!n t"e 77 e'e#t!%n %& pet!t!%nerPs %ard %& D!re#t%rs.4Resp%ndent t"$s #'ar!ed &r%8 MLHI t"e )era#!ty %& pet!t!%nerPs #'a!8, b$t MLHIa''eed'y #'a!8ed t"at t"e sa8e "ad a'ready been sett'ed.= T"!s pr%8ptedresp%ndent t% de8and &r%8 pet!t!%ner an ep'anat!%n @"y "e @as #%ns!dered ade'!nK$ent payer desp!te t"e sett'e8ent %& t"e %b'!at!%n. (et!t!%ner &a!'ed t% 8a6es$#" ep'anat!%n. Hen#e, t"e C%8p'a!nt &%r Da8aes< 'ed by resp%ndent aa!nstpet!t!%ner and MLHI, t"e pert!nent p%rt!%ns %& @"!#" read3

4. T"erea&ter, p'a!nt! %##$p!ed t"e sa!d #%nd%8!n!$8 $n!t n%. -7- and re'!!%$s'ypa!d a'' t"e #%rresp%nd!n 8%nt"'y #%ntr!b$t!%nsGass%#!at!%n d$es and %t"erassess8ents !8p%sed %n t"e sa8e. F%r t"e years 777 and 77-, p'a!nt! ser)ed as(res!dent and D!re#t%r %& t"e Med!#a' ('a?a Ma6at! C%nd%8!n!$8 C%rp%rat!%n/

=. N%net"e'ess, %n Septe8ber -9, 77, p'a!nt! @as s"%#6edGs$rpr!sed t% re#e!)e a'etter &r%8 t"e !n#$8bent C%rp%rate Se#retary %& t"e de&endant Med!#a' ('a?aMa6at!, de8and!n pay8ent %& a''eed $npa!d ass%#!at!%n d$es and assess8entsar!s!n &r%8 p'a!nt!Ps #%nd%8!n!$8 $n!t n%. -7-. T"e sa!d 'etter &$rt"er stressedt"at p'a!nt! !s #%ns!dered a de'!nK$ent 8e8ber %& t"e de&endant Med!#a' ('a?aMa6at!.

/

<. As a #%nseK$en#e, p'a!nt! @as n%t a''%@ed t% 'e "!s #ert!#ate %& #and!da#y asd!re#t%r. e!n #%ns!dered a de'!nK$ent, p'a!nt! @as a's% barred &r%8 eer#!s!n "!sr!"t t% )%te !n t"e e'e#t!%n %& ne@ 8e8bers %& t"e %ard %& D!re#t%rs /

9. Aa!n, pr!%r t% t"e sa!d e'e#t!%n date, #%$nse' &%r t"e de&endantM(MCC sent a de8and 'etter t% p'a!nt!, anent t"e sa!d de'!nK$en#y, ep'a!n!nt"at t"e sa!d $npa!d a8%$nt !s a #arry+%)er &r%8 t"e %b'!at!%n %& de&endantMer!d!en. /

-7. 0er!#at!%n @!t" t"e de&endant M(MCC res$'ted t% t"e !ss$an#e %& a#ert!#at!%n stat!n t"at C%nd%8!n!$8 Un!t -7- "as an %$tstand!n $npa!d%b'!at!%n !n t"e t%ta' a8%$nt %& (->5,54=.> as %& N%)e8ber B7, 77, @"!#"aa!n, @as attr!b$ted by de&endant M(MCC t% de&endant Mer!d!en. /

--. D$e t% t"e ser!%$sness %& t"e 8atter, and t"e &ee'!n t"at de&endant Mer!d!en

8ade &a'se representat!%ns #%ns!der!n t"at !t &$''y @arranted t% p'a!nt! t"at#%nd%8!n!$8 $n!t -7- !s &ree and #'ear &r%8 a'' '!ens and en#$8bran#es, t"e8atter @as re&erred t% #%$nse', @"% a##%rd!n'y sent a 'etter t% de&endant Mer!d!en,t% de8and &%r t"e pay8ent %& sa!d $npa!d ass%#!at!%n d$es and %t"er assess8ents!8p%sed %n t"e #%nd%8!n!$8 $n!t and be!n #'a!8ed by de&endant M(MCC. /

-. de&endant Mer!d!en #'a!8ed "%@e)er, t"at t"e %b'!at!%n d%es n%t e!st#%ns!der!n t"at t"e 8atter @as a'ready sett'ed and pa!d by de&endant Mer!d!en t%de&endant M(MCC. /

-B. ('a!nt! t"$s #a$sed t% be sent a 'etter t% de&endant M(MCC . T"e sa!d'etter s%$"t an ep'anat!%n %n t"e &a#t t"at, as per t"e 'etter %& de&endantMer!d!en, t"e de'!nK$en#y %& $n!t -7- @as a'ready &$''y pa!d and sett'ed, #%ntraryt% t"e #'a!8 %& de&endant M(MCC. /

5



INTRODUCTION

->. Desp!te re#e!pt %& sa!d 'etter %n Apr!' >, 77B, and t% date "%@e)er, n%ep'anat!%n @as !)en by de&endant M(MCC, t% t"e da8ae and pre$d!#e %&p'a!nt! @"% !s aa!n %b)!%$s'y be!n barred &r%8 )%t!nGpart!#!pat!n !n t"e e'e#t!%n%& 8e8bers %& t"e b%ard %& d!re#t%rs &%r t"e year 77B/

-5. C'ear'y, de&endant M(MCC a#ted 8a'!#!%$s'y by !ns!st!n t"at p'a!nt! !s ade'!nK$ent 8e8ber @"en !n &a#t, de&endant Mer!d!en "ad a'ready pa!d t"e sa!dde'!nK$en#y, !& any. T"e brand!n %& p'a!nt! as de'!nK$ent 8e8ber @as @!''&$''y and

de#e!t&$''y e8p'%yed s% as t% pre)ent p'a!nt! &r%8 eer#!s!n "!s r!"t t% )%te %r be)%ted as d!re#t%r %& t"e #%nd%8!n!$8 #%rp%rat!%n/ -4. De&endant M(MCCPs%8!n%$s s!'en#e @"en #%n&r%nted @!t" #'a!8 %& pay8ent 8ade by de&endantMer!d!en !s tanta8%$nt t% ad8!ss!%n t"at !ndeed, p'a!nt! !s n%t rea''y a de'!nK$ent8e8ber/

-=. A##%rd!n'y, as a d!re#t and pr%!8ate res$'t %& t"e sa!d a#ts %& de&endantM(MCC, p'a!nt! eper!en#edGs$ered &r%8 8enta' an$!s", 8%ra' s"%#6, andser!%$s an!ety. ('a!nt!, be!n a d%#t%r %& 8ed!#!ne and respe#ted !n t"e #%88$n!ty&$rt"er s$ered &r%8 s%#!a' "$8!'!at!%n and bes8!r#"ed rep$tat!%n t"ereby@arrant!n t"e rant %& 8%ra' da8aes !n t"e a8%$nt %& (577,777.77 and &%r @"!#"de&endant M(MCC s"%$'d be "e'd '!ab'e/

-<. y @ay %& ea8p'e %r #%rre#t!%n &%r t"e p$b'!# %%d, and as a stern @arn!n t%a'' s!8!'ar'y s!t$ated, de&endant M(MCC s"%$'d be %rdered t% pay p'a!nt!

ee8p'ary da8aes !n t"e a8%$nt %& (77,777.77/

-9. As a #%nseK$en#e, and s% as t% pr%te#t "!s r!"ts and !nterests, p'a!nt! @as#%nstra!ned t% "!re t"e ser)!#es %& #%$nse', &%r an a##eptan#e &ee %& (-77,777.77p'$s (,577.77 per e)ery #%$rt "ear!n attended by #%$nse'/

7. In t"e e)ent t"at t"e #'a!8 %& de&endant M(MCC t$rned %$t t% be tr$e,"%@e)er, t"e "ere!n de&endant Mer!d!en s"%$'d be "e'd '!ab'e !nstead, by %rder!nt"e sa8e t% pay t"e sa!d de'!nK$en#y %& #%nd%8!n!$8 $n!t -7- !n t"e a8%$nt %&(->5,54=.> as %& N%)e8ber B7, 77 as @e'' as t"e ab%)e da8aes, #%ns!der!nt"at t"e n%n+pay8ent t"ere%& @%$'d be t"e pr%!8ate #a$se %& t"e da8aess$ered by p'a!nt!/9

(et!t!%ner and MLHI 'ed t"e!r separate 8%t!%ns t% d!s8!ss t"e #%8p'a!nt %n t"er%$nd %& 'a#6 %& $r!sd!#t!%n.-7 MLHI #'a!8s t"at !t !s t"e H%$s!n and Land Use

Re$'at%ry %ard :HLUR; @"!#" !s )ested @!t" t"e e#'$s!)e $r!sd!#t!%n t% "ear andde#!de t"e #ase. (et!t!%ner, %n t"e %t"er "and, ra!ses t"e &%''%@!n spe#!# r%$nds&%r t"e d!s8!ssa' %& t"e #%8p'a!nt3 :-; est%ppe' as resp%ndent "!8se'& appr%)ed t"eassess8ent @"en "e @as t"e pres!dent/ :; 'a#6 %& $r!sd!#t!%n as t"e #ase !n)%')esan !ntra+#%rp%rate #%ntr%)ersy/ :B; pre8at$r!ty &%r &a!'$re %& resp%ndent t% e"a$sta'' !ntra+#%rp%rate re8ed!es/ and :>; t"e #ase !s a'ready 8%%t and a#ade8!#, t"e%b'!at!%n "a)!n been sett'ed bet@een pet!t!%ner and MLHI.--

On Septe8ber 9, 775, t"e RTC rendered a De#!s!%n rant!n pet!t!%nerPs and MLHIPs8%t!%ns t% d!s8!ss and, #%nseK$ent'y, d!s8!ss!n resp%ndentPs #%8p'a!nt.

T"e tr!a' #%$rt areed @!t" MLHI t"at t"e a#t!%n &%r spe#!# per&%r8an#e 'ed byresp%ndent #'ear'y &a''s @!t"!n t"e e#'$s!)e $r!sd!#t!%n %& t"e HLUR.- As t%pet!t!%ner, t"e #%$rt "e'd t"at t"e #%8p'a!nt states n% #a$se %& a#t!%n, #%ns!der!n

t"at resp%ndentPs %b'!at!%n "ad a'ready been sett'ed by MLHI. It, '!6e@!se, r$'edt"at t"e !ss$es ra!sed are !ntra+#%rp%rate bet@een t"e #%rp%rat!%n and 8e8ber.-B

On appea', t"e CA re)ersed and set as!de t"e tr!a' #%$rtPs de#!s!%n and re8andedt"e #ase t% t"e RTC &%r &$rt"er pr%#eed!ns. C%ntrary t% t"e RTC #%n#'$s!%n, t"e CA"e'd t"at t"e #%ntr%)ersy !s an %rd!nary #!)!' a#t!%n &%r da8aes @"!#" &a''s @!t"!nt"e $r!sd!#t!%n %& re$'ar #%$rts.-> It ep'a!ned t"at t"e #ase "!ned %n pet!t!%nerPsre&$sa' t% #%nr8 MLHIPs #'a!8 t"at t"e s$be#t %b'!at!%n "ad a'ready been sett'edas ear'y as -99< #a$s!n da8ae t% resp%ndent.-5 (et!t!%nerPs and MLHIPs 8%t!%ns

&%r re#%ns!derat!%n "ad a's% been den!ed.-4

Ar!e)ed, pet!t!%ner #%8es be&%re t"e C%$rt based %n t"e &%''%@!n r%$nds3

I.

THE COURT A QUO HAS DECIDED A QUESTION OF SUSTANCE, NOT THERETOFOREDETERMINED Y THE SU(REME COURT, OR HAS DECIDED IT IN A 1AY NOT INACCORD 1ITH LA1 OR 1ITH THE A((LICALE DECISIONS OF THE SU(REME COURT1HEN IT DECLARED THE INSTANT CASE AN ORDINARY ACTION FOR DAMA*ESINSTEAD OF AN INTRA+COR(ORATE CONTRO0ERSY CO*NIZALE Y A S(ECIALCOMMERCIAL COURT.

II.

THE COURT A QUO HAS DECIDED THE INSTANT CASE IN A 1AY NOT IN ACCORD1ITH LA1 OR 1ITH THE A((LICALE DECISIONS OF THE SU(REME COURT 1HEN IT TOO2 CO*NIZANCE OF THE A((EAL 1HILE RAISIN* ONLY (URE QUESTIONS OFLA1.-=

T"e pet!t!%n !s 8er!t%r!%$s.

It !s a sett'ed r$'e t"at $r!sd!#t!%n %)er t"e s$be#t 8atter !s deter8!ned by t"ea''eat!%ns !n t"e #%8p'a!nt. It !s n%t ae#ted by t"e p'eas %r t"e t"e%r!es set $p byt"e de&endant !n an ans@er %r a 8%t!%n t% d!s8!ss. Ot"er@!se, $r!sd!#t!%n @%$'dbe#%8e dependent a'8%st ent!re'y $p%n t"e @"!8s %& t"e de&endant.-< A's%!''$8!nat!n !s t"e C%$rtPs pr%n%$n#e8ent !n *% ). D!st!n#t!%n (r%pert!esDe)e'%p8ent and C%nstr$#t!%n, In#.3-9

as!# as a "%rnb%%6 pr!n#!p'e !s t"at $r!sd!#t!%n %)er t"e s$be#t 8atter %& a #ase !s

#%n&erred by 'a@ and deter8!ned by t"e a''eat!%ns !n t"e #%8p'a!nt @"!#" #%8pr!sea #%n#!se state8ent %& t"e $'t!8ate &a#ts #%nst!t$t!n t"e p'a!nt!Ps #a$se %& a#t!%n.

T"e nat$re %& an a#t!%n, as @e'' as @"!#" #%$rt %r b%dy "as $r!sd!#t!%n %)er !t, !sdeter8!ned based %n t"e a''eat!%ns #%nta!ned !n t"e #%8p'a!nt %& t"e p'a!nt!,!rrespe#t!)e %& @"et"er %r n%t t"e p'a!nt! !s ent!t'ed t% re#%)er $p%n a'' %r s%8e %&t"e #'a!8s asserted t"ere!n. T"e a)er8ents !n t"e #%8p'a!nt and t"e #"ara#ter %&t"e re'!e& s%$"t are t"e %nes t% be #%ns$'ted. On#e )ested by t"e a''eat!%ns !n t"e#%8p'a!nt, $r!sd!#t!%n a's% re8a!ns )ested !rrespe#t!)e %& @"et"er %r n%t t"e p'a!nt! !s ent!t'ed t% re#%)er $p%n a'' %r s%8e %& t"e #'a!8s asserted t"ere!n. 7

ased %n t"e a''eat!%ns 8ade by resp%ndent !n "!s #%8p'a!nt, d%es t"e #%ntr%)ersy!n)%')e !ntra+#%rp%rate !ss$es as @%$'d &a'' @!t"!n t"e $r!sd!#t!%n %& t"e RTC s!tt!nas a spe#!a' #%88er#!a' #%$rt %r an %rd!nary a#t!%n &%r da8aes @!t"!n t"e

$r!sd!#t!%n %& re$'ar #%$rts

4



INTRODUCTION

In deter8!n!n @"et"er a d!sp$te #%nst!t$tes an !ntra+#%rp%rate #%ntr%)ersy, t"eC%$rt $ses t@% tests, na8e'y, t"e re'at!%ns"!p test and t"e nat$re %& t"e #%ntr%)ersytest.-

An !ntra+#%rp%rate #%ntr%)ersy !s %ne @"!#" perta!ns t% any %& t"e &%''%@!nre'at!%ns"!ps3 :-; bet@een t"e #%rp%rat!%n, partners"!p %r ass%#!at!%n and t"e p$b'!#/:; bet@een t"e #%rp%rat!%n, partners"!p %r ass%#!at!%n and t"e State !ns%&ar as !ts&ran#"!se, per8!t %r '!#ense t% %perate !s #%n#erned/ :B; bet@een t"e #%rp%rat!%n,

partners"!p %r ass%#!at!%n and !ts st%#6"%'ders, partners, 8e8bers %r %#ers/ and:>; a8%n t"e st%#6"%'ders, partners %r ass%#!ates t"e8se')es. T"$s, $nder t"ere'at!%ns"!p test, t"e e!sten#e %& any %& t"e ab%)e !ntra+#%rp%rate re'at!%ns 8a6est"e #ase !ntra+#%rp%rate.B

Under t"e nat$re %& t"e #%ntr%)ersy test, t"e #%ntr%)ersy 8$st n%t %n'y be r%%ted!n t"e e!sten#e %& an !ntra+#%rp%rate re'at!%ns"!p, b$t 8$st as @e'' perta!n t% t"een&%r#e8ent %& t"e part!esP #%rre'at!)e r!"ts and %b'!at!%ns $nder t"e C%rp%rat!%nC%de and t"e !nterna' and !ntra+#%rp%rate re$'at%ry r$'es %& t"e #%rp%rat!%n.> In%t"er @%rds, $r!sd!#t!%n s"%$'d be deter8!ned by #%ns!der!n b%t" t"e re'at!%ns"!p%& t"e part!es as @e'' as t"e nat$re %& t"e K$est!%n !n)%')ed.5

App'y!n t"e t@% tests, @e nd and s% "%'d t"at t"e #ase !n)%')es !ntra+#%rp%rate#%ntr%)ersy. It %b)!%$s'y ar%se &r%8 t"e !ntra+#%rp%rate re'at!%ns bet@een t"epart!es, and t"e K$est!%ns !n)%')ed perta!n t% t"e!r r!"ts and %b'!at!%ns $nder t"e

C%rp%rat!%n C%de and 8atters re'at!n t% t"e re$'at!%n %& t"e #%rp%rat!%n.4

Ad8!tted'y, pet!t!%ner !s a #%nd%8!n!$8 #%rp%rat!%n d$'y %ran!?ed and e!st!n$nder ("!'!pp!ne 'a@s, #"ared @!t" t"e 8anae8ent %& t"e Med!#a' ('a?a Ma6at!.Resp%ndent, %n t"e %t"er "and, !s t"e re!stered %@ner %& Un!t N%. -7- and !s t"$sa st%#6"%'derG8e8ber %& t"e #%nd%8!n!$8 #%rp%rat!%n. C'ear'y, t"ere !s an !ntra+#%rp%rate re'at!%ns"!p bet@een t"e #%rp%rat!%n and a st%#6"%'derG8e8ber.

T"e nat$re %& t"e a#t!%n !s deter8!ned by t"e b%dy rat"er t"an t"e t!t'e %& t"e#%8p'a!nt.-@p"!- T"%$" den%8!nated as an a#t!%n &%r da8aes, an ea8!nat!%n%& t"e a''eat!%ns 8ade by resp%ndent !n "!s #%8p'a!nt s"%@s t"at t"e #asepr!n#!pa''y d@e''s %n t"e pr%pr!ety %& t"e assess8ent 8ade by pet!t!%ner aa!nstresp%ndent as @e'' as t"e )a'!d!ty %& pet!t!%nerPs a#t !n pre)ent!n resp%ndent &r%8part!#!pat!n !n t"e e'e#t!%n %& t"e #%rp%rat!%nPs %ard %& D!re#t%rs. Resp%ndent#%ntested t"e a''eed $npa!d d$es and assess8ents de8anded by pet!t!%ner.

T"e !ss$e !s n%t n%)e'. T"e nat$re %& an a#t!%n !n)%')!n any d!sp$te as t% t"e)a'!d!ty %& t"e assess8ent %& ass%#!at!%n d$es "as been sett'ed by t"e C%$rt !nC"atea$ de a!e C%nd%8!n!$8 C%rp%rat!%n ). M%ren%.= In t"at #ase, resp%ndentst"ere!n 'ed a #%8p'a!nt &%r !ntra+#%rp%rate d!sp$te aa!nst t"e pet!t!%ner t"ere!n t%K$est!%n "%@ !t #a'#$'ated t"e d$es assessed aa!nst t"e8, and t% as6 ana##%$nt!n %& ass%#!at!%n d$es. (et!t!%ner, "%@e)er, 8%)ed &%r t"e d!s8!ssa' %& t"e#ase %n t"e r%$nd %& 'a#6 %& $r!sd!#t!%n a''e!n t"at s!n#e t"e #%8p'a!nt @asaa!nst t"e %@nerGde)e'%per %& a #%nd%8!n!$8 @"%se #%nd%8!n!$8 pr%e#t @asre!stered @!t" and '!#ensed by t"e HLUR, t"e 'atter "as t"e e#'$s!)e $r!sd!#t!%n.In s$sta!n!n t"e den!a' %& t"e 8%t!%n t% d!s8!ss, t"e C%$rt "e'd t"at t"e d!sp$te ast% t"e )a'!d!ty %& t"e assess8ents !s p$re'y an !ntra+#%rp%rate 8atter bet@eenpet!t!%ner and resp%ndent and !s t"$s @!t"!n t"e e#'$s!)e $r!sd!#t!%n %& t"e RTCs!tt!n as a spe#!a' #%88er#!a' #%$rt. M%re s% !n t"!s #ase as resp%ndent repeated'y

K$est!%ned "!s #"ara#ter!?at!%n as a de'!nK$ent 8e8ber and, #%nseK$ent'y,pet!t!%nerPs de#!s!%n t% bar "!8 &r%8 eer#!s!n "!s r!"ts t% )%te and be )%ted &%r.

T"ese !ss$es are #'ear'y #%rp%rate and t"e de8and &%r da8aes !s $st !n#!denta'.e!n #%rp%rate !n nat$re, t"e !ss$es s"%$'d be t"res"ed %$t be&%re t"e RTC s!tt!nas a spe#!a' #%88er#!a' #%$rt. T"e !ss$es %n da8aes #an st!'' be res%')ed !n t"esa8e spe#!a' #%88er#!a' #%$rt $st '!6e a re$'ar RTC @"!#" !s st!'' #%8petent t%ta#6'e #!)!' 'a@ !ss$es !n#!denta' t% !ntra+#%rp%rate d!sp$tes 'ed be&%re !t.<

M%re%)er, (res!dent!a' De#ree N%. 97+A en$8erates t"e #ases %)er @"!#" t"e

Se#$r!t!es and E#"ane C%88!ss!%n :SEC; eer#!ses e#'$s!)e $r!sd!#t!%n3

b; C%ntr%)ers!es ar!s!n %$t %& !ntra+#%rp%rate %r partners"!p re'at!%ns, bet@een anda8%n st%#6"%'ders, 8e8bers %r ass%#!ates/ bet@een any %r a'' %& t"e8 and t"e#%rp%rat!%n, partners"!p %r ass%#!at!%n %& @"!#" t"ey are st%#6"%'ders, 8e8bers, %rass%#!ates, respe#t!)e'y/ and bet@een s$#" #%rp%rat!%n, partners"!p %r ass%#!at!%nand t"e State !ns%&ar as !t #%n#erns t"e!r !nd!)!d$a' &ran#"!se %r r!"t t% e!st as s$#"ent!ty/ and

#; C%ntr%)ers!es !n t"e e'e#t!%n %r app%!nt8ent %& d!re#t%rs, tr$stees, %#ers, %r8anaers %& s$#" #%rp%rat!%ns, partners"!ps, %r ass%#!at!%ns.9

T% be s$re, t"!s a#t!%n parta6es %& t"e nat$re %& an !ntra+#%rp%rate #%ntr%)ersy, t"e

$r!sd!#t!%n %)er @"!#" perta!ns t% t"e SEC. ($rs$ant t% Se#t!%n 5. %& Rep$b'!# A#tN%. <=99, %t"er@!se 6n%@n as t"e Se#$r!t!es Re$'at!%n C%de, t"e $r!sd!#t!%n %& t"eSEC %)er a'' #ases en$8erated $nder Se#t!%n 5 %& (res!dent!a' De#ree N%. 97+A "asbeen trans&erred t% RTCs des!nated by t"!s C%$rt as Spe#!a' C%88er#!a' C%$rts.B71"!'e t"e CA 8ay be #%rre#t t"at t"e RTC "as $r!sd!#t!%n, t"e #ase s"%$'d "a)ebeen 'ed n%t @!t" t"e re$'ar #%$rt b$t @!t" t"e bran#" %& t"e RTC des!nated as aspe#!a' #%88er#!a' #%$rt. C%ns!der!n t"at t"e RTC %& Ma6at! C!ty, ran#" 5< @asn%t des!nated as a spe#!a' #%88er#!a' #%$rt, !t @as n%t )ested @!t" $r!sd!#t!%n%)er #ases pre)!%$s'y #%n!?ab'e by t"e SEC.B- T"e CA, t"ere&%re, ra)e'y erred !nre8and!n t"e #ase t% t"e RTC &%r &$rt"er pr%#eed!ns.

Indeed, Rep$b'!# A#t :RA; N%. 997>, %r t"e Mana Carta &%r H%8e%@ners andH%8e%@nersP Ass%#!at!%ns, appr%)ed %n Jan$ary =, 7-7 and be#a8e ee#t!)e %n

J$'y -7, 7-7, e8p%@ers t"e HLUR t% "ear and de#!de !nter+ass%#!at!%n andG%r!ntra+ass%#!at!%n #%ntr%)ers!es %r #%n!#ts #%n#ern!n "%8e%@nersP ass%#!at!%ns.

H%@e)er, @e #ann%t app'y t"e sa8e !n t"e present #ase as !t !n)%')es a #%ntr%)ersybet@een a #%nd%8!n!$8 $n!t %@ner and a #%nd%8!n!$8 #%rp%rat!%n. 1"!'e t"e ter8ass%#!at!%n as dened !n t"e 'a@ #%)ers "%8e%@nersP ass%#!at!%ns %& %t"erres!dent!a' rea' pr%perty @"!#" !s br%ad en%$" t% #%)er a #%nd%8!n!$8 #%rp%rat!%n,!t d%es n%t see8 t% be t"e 'e!s'at!)e !ntent. A t"%r%$" re)!e@ %& t"e de'!berat!%ns%& t"e b!#a8era' #%n&eren#e #%88!ttee @%$'d s"%@ t"at t"e 'a@8a6ers d!d n%t!ntend t% etend t"e #%)erae %& t"e 'a@ t% s$#" 6!nd %& ass%#!at!%n. 1e K$%te"ere$nder t"e pert!nent p%rt!%n %& t"e !#a8era' C%n&eren#e C%88!tteePsde'!berat!%n, t% @!t3

THE CHAIRMAN :SEN. ZUIRI;. LetPs % ba#6, Mr. C"a!r, )ery K$!#6'y %n "%8e%@ners.

THE ACTIN* CHAIRMAN :RE(. ZIALCITA;. An sa a6!n 'an, I t"!n6 %$r )!e@s ares!8!'ar, Y%$r H%n%r, Senat%r Z$b!r!, t"e entry %& t"e #%nd%8!n!$8 $n!ts 8!"t $st

=



INTRODUCTION#%8p'!#ate t"e @"%'e 8atters. S% @ePd '!6e t% p$t !t %n re#%rd t"at @ePre )ery 8$#"#%n#erned ab%$t t"e p'!"t %& t"e C%nd%8!n!$8 Un!t H%8e%@nersP Ass%#!at!%n. $tt"!s #%$'d )ery @e'' be addressed %n a separate b!'' t"at IP8 @!''!n t% #%+sp%ns%r@!t" t"e d!st!n$!s"ed Senat%r Z$b!r!, t% address !n t"e C%nd%8!n!$8 A#t %& t"e("!'!pp!nes, rat"er t"an address !t "ere be#a$se !t 8!"t $st #reate a red "err!n!nt% t"e ent!re t"!n and !t @!'' $st #%8p'!#ate 8atters, "!nd! ba

THE CHAIRMAN :SEN. ZUIRI;. I a's% aree @!t" y%$ a't"%$" I sy8pat"!?e @!t"t"e8+++a't"%$" @e sy8pat"!?e @!t" t"e8 and @e &ee' t"at 8any t!8es t"e!r r!"ts

"a)e been a's% )!%'ated by ab$s!)e #%nd%8!n!$8 #%rp%rat!%ns. H%@e)er, t"ere are#erta!n t"!ns t"at @e "a)e t% re#%n#!'e. T"ere are #erta!n !ss$es t"at @e "a)e t%re#%n#!'e @!t" t"!s )ers!%n.

In t"e C%nd%8!n!$8 C%de, &%r ea8p'e, t"ey $st ra!sed a )ery pe#$'!ar s!t$at!%n$nder t"e C%nd%8!n!$8 C%de +++ C%nd%8!n!$8 C%rp%rat!%n A#t. ItPs )e years t"epr%y, @"ereas "ere, !tPs t"ree years. S% t"ere @%$'d a'ready be )!%'at!%n %r t"ere@!'' be a'ready a pr%b'e8 @!t" t"e!r )ers!%n and %$r )ers!%n. S!n% an 8at$t$padd%%n 1!'' !t be %$r )ers!%n %r t"e!r )ers!%n

S% I aree t"at "as t% be st$d!ed &$rt"er. And be#a$se t"ey "a)e a 'a@ perta!n!n t%t"e #%nd%8!n!$8 "%$s!n $n!ts, I pers%na''y &ee' t"at !t @%$'d #%8p'!#ate 8atters !&@e !n#'$de t"e8. A't"%$" I aree t"at t"ey s"%$'d be '%%6ed a&ter and t"e!rpr%b'e8s be '%%6ed !nt%.

(r%bab'y @e #an as6 %$r sta, Y%$r H%n%r, t% #%8e $p a'ready @!t" t"e b!'' a't"%$"@e "a)e n% 8%re t!8e. H%pe&$''y @e #an ta#6'e t"!s aa!n %n t"e -5t" C%nress. $tI aree @!t" t"e sent!8ents and t"e !np$ts %& t"e H%n%rab'e C"a!r %& t"e H%$sepane'.

May @e as6 %$r res%$r#e pers%ns t% a's% pr%bab'y !)e #%88ents

Atty. Dayr!t.

MR. DAYRIT.

Yes I aree @!t" y%$. T"ere are 8any, I t"!n6, pra#t!#es !n t"e!r pr%)!s!%ns !n t"eC%nd%8!n!$8 La@ t"at 8ay be #%n!#t!n @!t" t"!s )ers!%n %& %$rs.

F%r !nstan#e, !n t"e #ase %&, 'etPs say, t"e #%nd%8!n!$8, t"e s%+#a''ed #%88%n areas

andG%r 8aybe s% #a''ed %pen spa#es t"at t"ey 8ay "a)e, espe#!a''y #%88%n areas,t"ey are $s$a''y %@ned by t"e #%nd%8!n!$8 #%rp%rat!%n. Un'!6e a s$bd!)!s!%n @"eret"e %pen spa#es andG%r t"e #%88%n areas are n%t ne#essar!'y %@ned by t"eass%#!at!%n. e#a$se s%8et!8es +++ enera''y t"ese are d%nated t% t"e 8$n!#!pa'!ty%r t% t"e #!ty. And !t !s %n'y @"en t"e #!ty %r 8$n!#!pa'!ty !)es t"e appr%)a' %r t"e#%n&%r8!ty t"at t"!s !s d%nated t% t"e "%8e%@nersP ass%#!at!%n. $t enera''y, $nder(D (res!dent!a' De#ree 95=, !tPs d%nated. In t"e C%nd%8!n!$8 C%rp%rat!%n, "!nd!.La"at n 8a %pen spa#es and #%88%n areas '!6e #%rr!d%rs, t"e &$n#t!%n r%%8s ande)eryt"!n, are %@ned by t"e #%rp%rat!%n. S% t"atPs %ne 8a!n !ss$e t"at #an be#%n!#t!n.

THE CHAIRMAN :SEN. ZUIRI;. IP'' $st as6 &%r a %ne+8!n$te s$spens!%n s% @e #anta'6.

THE ACTIN* CHAIRMAN :RE(. ZIALCITA;. Un'ess y%$ @ant t% p$t a #at#"a'' p"rase'!6e @"at @e d!d !n t"e Sen!%r C!t!?enPs A#t. S%8et"!n '!6e, t% t"e etent +++ paan%ba !y%n T% t"e etent t"at !t !s pra#t!#ab'e and app'!#ab'e, t"e r!"ts and benets %&t"e "%8e%@ners, are "ereby etended t% t"e +++ 8ayr%%n 6a8!n !na8!t na p"rasee"...t% t"e etent t"at !t be pra#t!#ab'e and app'!#ab'e t% t"e $n!t "%8e%@eners, !s"ereby etended, s%8et"!n '!6e t"at. ItPs a #at#"a'' p"rase. $t t"en aa!n, !t 8!"t#reate a...

MR. JALANDONI. It @!'' be#%8e #%8p'!#ated. T"ere @!'' be a '%t %& #%n!#t %& 'a@s

bet@een t"e t@% 'a@s.

THE ACTIN* CHAIRMAN :RE(. ZIALCITA;. 2aya na e". At sa6a, I d%nPt 6n%@. I t"!n6t"e +++ 8ayr%%n na8an s!'an pr%te#t!%n sa an% e", d! ba $yers de#ree d%%n saC%nd%8!n!$8 A#t. IP8 s$re t"ere are pr%)!s!%ns t"ere e". H$@a na 'an, "$@a na'an.

MR. JALANDONI. Mr. C"a!r8an, I t"!n6 !t @%$'d be best !& y%$r pre)!%$s #%88entst"at y%$Pd be s$pp%rt!n an a8end8ent.-@p"!- I t"!n6 t"at @%$'d be +++ 1e'', t"at@%$'d be t"e best #%$rse %& a#t!%n @!t" a'' d$e respe#t.

THE ACTIN* CHAIRMAN :RE(. ZIALCITA;. Yea". O6ay. T"an6 y%$. S% !y%n na 'an na'pr%p%sa' na8!n y$n #at#"a'' p"rase, 1!t" respe#t t% t"e...B

THE CHAIRMAN :SEN. ZUIRI;. And s%, @"at !s t"e!r na' de#!s!%n %n t"eden!t!%n %& "%8e%@ners

THE ACTIN* CHAIRMAN :RE(. ZIALCITA;.

1e st!#6 t% t"e %r!!na', Mr. C"a!r8an. 1eP'' $st %pen $p a @"%'e #an %& @%r8s anda @"%'e ne@ ba'' a8e @!'' #%8e !nt% p'ay. es!des, I a8 n%t a$t"%r!?ed, ne!t"er arey%$, by %$r #%$nterparts t% !n#'$de t"e #%nd%8!n!$8 %@ners.

THE CHAIRMAN :SEN. ZUIRI;.

as!#a''y t"at !s #%rre#t. 1e are n%t a$t"%r!?ed by t"e Senate n%r be#a$se @e "a)ed!s#$ssed t"!s 'ent"!'y %n t"e %%r, a#t$a''y, se)era' 8%nt"s %n t"e %%r. And @ed%nPt "a)e t"e a$t"%r!ty as @e'' &%r %t"er !#a8 8e8bers t% add a pr%)!s!%n t%

!n#'$de a separate ent!ty t"at "as a'ready t"e!r 'ea' %r t"e!r estab'!s"ed Rep$b'!#A#t ta#6'!n %n t"at part!#$'ar !ss$e. $t @e $st '!6e t% p$t %n re#%rd, @e sy8pat"!?e@!t" t"e p'!"t %& %$r &r!ends !n t"e #%nd%8!n!$8 ass%#!at!%ns and @e @!'' $st$arantee t"e8 t"at @e @!'' @%r6 %n an a8end8ent t% t"e C%nd%8!n!$8C%rp%rat!%n C%de. S% @!t" t"at @e s6!pped, t"at !s #%rre#t, @e "a)e t% % ba#6 t%"%8e%@nersP ass%#!at!%n den!t!%n, Y%$r H%n%r, be#a$se @e "ad s6!pped !ta't%et"er. S% $st K$!#6'y %!n ba#6 t% (ae = be#a$se t"ere are a8end8ents t%t"e den!t!%n %& "%8e%@ners. I& !t !s a'r!"t @!t" t"e H%$se (ane', ad%pt t"e %pen!np"rase %& S$bse#t!%n = %& t"e Senate )ers!%n as %pen!n p"rase %& S$bse#t!%n -7 %&t"e re#%n#!'ed )ers!%n.

BB

<



INTRODUCTION T% be s$re, RA >=4 %r t"e C%nd%8!n!$8 A#t @as ena#ted t% spe#!#a''y %)ern a#%nd%8!n!$8. Sa!d 'a@ san#t!%ns t"e #reat!%n %& t"e #%nd%8!n!$8 #%rp%rat!%n @"!#"!s espe#!a''y &%r8ed &%r t"e p$rp%se %& "%'d!n t!t'e t% t"e #%88%n area, !n @"!#"t"e "%'ders %& separate !nterests s"a'' a$t%8at!#a''y be 8e8bers %r s"are"%'ders, t%t"e e#'$s!%n %& %t"ers, !n pr%p%rt!%n t% t"e app$rtenant !nterest %& t"e!r respe#t!)e$n!ts.B> T"e r!"ts and %b'!at!%ns %& t"e #%nd%8!n!$8 $n!t %@ners and t"e#%nd%8!n!$8 #%rp%rat!%n are set &%rt" !n t"e ab%)e A#t.

C'ear'y, #%nd%8!n!$8 #%rp%rat!%ns are n%t #%)ered by t"e a8end8ent. T"$s, t"e

!ntra+#%rp%rate d!sp$te bet@een pet!t!%ner and resp%ndent !s st!'' @!t"!n t"e $r!sd!#t!%n %& t"e RTC s!tt!n as a spe#!a' #%88er#!a' #%$rt and n%t t"e HLUR. T"ed%#tr!ne 'a!d d%@n by t"e C%$rt !n C"atea$ de a!e C%nd%8!n!$8 C%rp%rat!%n ).M%ren%B5 @"!#" !n t$rn #!ted 1a#6 1a#6 C%nd%8!n!$8 C%rp%rat!%n, et a' ). CAB4 !sst!'' a %%d 'a@.

1HEREFORE, @e "ereby *RANT t"e pet!t!%n and RE0ERSE t"e C%$rt %& Appea'sDe#!s!%n dated J$'y -7, 77= and Res%'$t!%n dated Jan$ary 5, 77< !n CA+*.R. C0N%. <44->. T"e C%8p'a!nt be&%re t"e Re!%na' Tr!a' C%$rt %& Ma6at! C!ty, ran#" 5<,@"!#" !s n%t a spe#!a' #%88er#!a' #%$rt, d%#6eted as C!)!' Case N%. 7B+-7-< !s%rdered DISMISSED &%r 'a#6 %& $r!sd!#t!%n. Let t"e #ase be REMANDED t% t"eEe#$t!)e J$de %& t"e Re!%na' Tr!a' C%$rt %& Ma6at! C!ty &%r re+rae p$rp%sesa8%n t"e des!nated spe#!a' #%88er#!a' #%$rts.

SO ORDERED.

*.R. N%. -<7B- Mar#" 7, 7-B

EDITHA (ADLAN, (et!t!%ner,)s.ELENITA DIN*LASAN and FELICISIMO DIN*LASAN, Resp%ndents.

D E C I S I O N

(ERALTA, J.3

T"!s !s a pet!t!%n &%r re)!e@ %n #ert!%rar! assa!'!n t"e De#!s!%n- dated J$ne 9, 77=%& t"e C%$rt %& Appea's :CA; !n CA+*.R. C0 N%. <49<B, and t"e Res%'$t!%n datedO#t%ber B, 77= deny!n pet!t!%ners M%t!%n &%r Re#%ns!derat!%n.B

T"e &a#t$a' and pr%#ed$ra' ante#edents are as &%''%@s3

E'en!ta D!n'asan :E'en!ta; @as t"e re!stered %@ner %& a par#e' %& 'and des!natedas L%t N%. 45 %& t"e L!8ay Cadastre @"!#" !s #%)ered by Trans&er Cert!#ate %& T!t'e:TCT; N%. T+-7547, @!t" an areate area %& <,9= sK$are 8eters. 1"!'e %nb%ard a eepney, E'en!taPs 8%t"er, L!'!a a'$y%t :L!'!a;, "ad a #%n)ersat!%n @!t" %neMa$ra (ass!%n :Ma$ra; reard!n t"e sa'e %& t"e sa!d pr%perty. e'!e)!n t"at Ma$ra@as a rea' estate aent, L!'!a b%rr%@ed t"e %@nerPs #%py %& t"e TCT &r%8 E'en!ta anda)e !t t% Ma$ra. Ma$ra t"en s$bd!)!ded t"e pr%perty !nt% se)era' '%ts &r%8 L%t N%.45+A t% L%t N%. 45+O, $nder t"e na8e %& E'en!ta and "er "$sband Fe'!#!s!8%D!n'asan :Fe'!#!s!8%;.

T"r%$" a &a's!ed deed %& sa'e bear!n t"e &%red s!nat$re %& E'en!ta and "er"$sband Fe'!#!s!8%, Ma$ra @as ab'e t% se'' t"e '%ts t% d!erent b$yers. On Apr!' 4,

-997, Ma$ra s%'d L%t N%. 45+2 t% %ne L%rna On :L%rna;, @"% 'ater #a$sed t"e!ss$an#e %& TCT N%. -B>9B &%r t"e s$be#t pr%perty $nder "er na8e. A &e@ 8%nt"s'ater, %r s%8et!8e !n A$$st -997, L%rna s%'d t"e '%t t% pet!t!%ner Ed!t"a (ad'an &%r(>,777.77. T"$s, TCT N%. -B>9B @as #an#e''ed and TCT N%. -B=>44 @as !ss$ed !nt"e na8e %& pet!t!%ner.

A&ter 'earn!n @"at "ad "appened, resp%ndents de8anded pet!t!%ner t% s$rrenderp%ssess!%n %& L%t N%. 45+2, b$t t"e 'atter re&$sed. Resp%ndents @ere t"en &%r#ed t%'e a #ase be&%re t"e Re!%na' Tr!a' C%$rt :RTC; %& a'ana, ataan &%r t"e

Can#e''at!%n %& Trans&er Cert!#ate %& T!t'e N%. -B=>44, d%#6eted as C!)!' Case N%.>B<+ML. S$88%ns @as, t"erea&ter, ser)ed t% pet!t!%ner t"r%$" "er 8%t"er, An!ta(ad'an.

On De#e8ber -B, -999, resp%ndents 8%)ed t% de#'are pet!t!%ner !n de&a$'t andprayed t"at t"ey be a''%@ed t% present e)!den#e e parte.>

On Jan$ary -=, 777, pet!t!%ner, t"r%$" #%$nse', 'ed an Opp%s!t!%n t% De#'areDe&endant !n De&a$'t @!t" M%t!%n t% D!s8!ss Case &%r La#6 %& J$r!sd!#t!%n O)er t"e(ers%n %& De&endant.5 (et!t!%ner #'a!8ed t"at t"e #%$rt d!d n%t a#K$!re $r!sd!#t!%n%)er "er, be#a$se t"e s$88%ns @as n%t )a'!d'y ser)ed $p%n "er pers%n, b$t %n'y by8eans %& s$bst!t$ted ser)!#e t"r%$" "er 8%t"er. (et!t!%ner 8a!nta!ned t"at s"e "as'%n been res!d!n !n Japan a&ter s"e 8arr!ed a Japanese nat!%na' and %n'y #%8es t%t"e ("!'!pp!nes &%r a br!e& )a#at!%n %n#e e)ery t@% years.

On Apr!' 5, 77-, C"ar'!e (ad'an, t"e br%t"er %& pet!t!%ner, test!ed t"at "!s s!ster !sst!'' !n Japan and s$b8!tted a #%py %& pet!t!%nerPs passp%rt and an en)e'%pe %& a'etter t"at @as a''eed'y sent by "!s s!ster. Ne)ert"e'ess, %n Apr!' 5, 77-, t"e RTC!ss$ed an Order4 deny!n pet!t!%nerPs 8%t!%n t% d!s8!ss and de#'ared "er !n de&a$'t.

T"erea&ter, tr!a' ens$ed.

On J$'y -, 775, t"e RTC rendered a De#!s!%n= nd!n pet!t!%ner t% be a b$yer !n%%d &a!t" and, #%nseK$ent'y, d!s8!ssed t"e #%8p'a!nt.

N%t sat!sed, resp%ndents s%$"t re#%$rse be&%re t"e CA, d%#6eted as CA+*.R. N%.C0 N%. <49<B.

On J$ne 9, 77=, t"e CA rendered a De#!s!%n< !n &a)%r %& t"e resp%ndent.C%nseK$ent'y, t"e CA re)ersed and set as!de t"e De#!s!%n %& t"e RTC and %rderedt"e #an#e''at!%n %& t"e TCT !ss$ed !n t"e na8e %& L%rna and t"e pet!t!%ner, and t"e

re)!)a' %& resp%ndentsP %@n t!t'e, t% @!t3

1HEREFORE, !n )!e@ %& t"e &%re%!n, t"e De#!s!%n dated J$'y

-, 775 %& t"e Re!%na' Tr!a' C%$rt, T"!rd J$d!#!a' Re!%n, ran#" >, Mar!)e'es, ataan:Stat!%ned !n a'ana, ataan; !n C!)!' Case N%. >B<+ML !s "ereby RE0ERSED andSET ASIDE.

T"e Trans&er Cert!#ate %& T!t'e N%. -B>9B !ss$ed !n t"e na8e %& L%rna On and Trans&er Cert!#ate %& T!t'e N%. -B=>44 !ss$ed !n t"e na8e %& de&endant+appe''eeEd!t"a (ad'an are CANCELLED and Trans&er Cert!#ate %& T!t'e N%. -B>=<5 !n t"ena8e %& t"e p'a!nt!s+appe''ants !s RE0I0ED.

SO ORDERED.9

9



INTRODUCTION

T"e CA &%$nd t"at pet!t!%ner p$r#"ased t"e pr%perty !n bad &a!t" &r%8 L%rna. T"e CA%p!ned t"at a't"%$" a p$r#"aser !s n%t epe#ted t% % bey%nd t"e t!t'e, based %nt"e #!r#$8stan#es s$rr%$nd!n t"e sa'e, pet!t!%ner s"%$'d "a)e #%nd$#ted &$rt"er!nK$!ry be&%re b$y!n t"e d!sp$ted pr%perty. T"e &a#t t"at L%rna b%$"t a 5,777+sK$are+8eter pr%perty &%r %n'y (>,777.77 and se''!n !t a&ter &%$r 8%nt"s &%r t"esa8e a8%$nt s"%$'d "a)e p$t pet!t!%ner %n $ard. 1!t" t"e s$b8!ss!%n %& t"e

J$d8ent !n Cr!8!na' Case N%. >B4 rendered by t"e RTC, ran#" , a'ana,ataan, ent!t'ed (e%p'e %& t"e ("!'!pp!nes ). Ma$ra (ass!%n-7 and t"e test!8%n!es %&

resp%ndents, t"e CA #%n#'$ded t"at resp%ndents s$#!ent'y estab'!s"ed t"at TCTN%. -B>9B !ss$ed !n t"e na8e %& L%rna and TCT N%. -B=>44 !ss$ed !n t"e na8e %&pet!t!%ner @ere &ra$d$'ent'y !ss$ed and, t"ere&%re, n$'' and )%!d.

Ar!e)ed, pet!t!%ner 'ed a M%t!%n &%r Re#%ns!derat!%n. (et!t!%ner ar$ed t"at n%t%n'y d!d t"e #%8p'a!nt 'a#6s 8er!t, t"e '%@er #%$rt &a!'ed t% a#K$!re $r!sd!#t!%n %)ert"e s$be#t 8atter %& t"e #ase and t"e pers%n %& t"e pet!t!%ner.

On O#t%ber B, 77=, t"e CA !ss$ed a Res%'$t!%n-- deny!n t"e 8%t!%n. T"e CA#%n#'$ded t"at t"e rat!%na'e &%r t"e e#ept!%n 8ade !n t"e 'and8ar6 #ase %& T!a8 ).S!b%n"an%y- @as present !n t"e #ase. It reas%ned t"at @"en t"e RTC den!edpet!t!%nerPs 8%t!%n t% d!s8!ss t"e #ase &%r 'a#6 %& $r!sd!#t!%n, pet!t!%ner ne!t"er8%)ed &%r a re#%ns!derat!%n %& t"e %rder n%r d!d s"e a)a!' %& any re8edy pr%)!dedby t"e R$'es. Instead, s"e 6ept s!'ent and %n'y be#a8e !nterested !n t"e #ase aa!n@"en t"e CA rendered a de#!s!%n ad)erse t% "er #'a!8.

Hen#e, t"e pet!t!%n ass!n!n t"e &%''%@!n err%rs3

I

1HETHER OR NOT THE HONORALE COURT HAS JURISDICTION O0ER THE (ERSONOF THE (ETITIONER.

II

1HETHER OR NOT THE HONORALE COURT HAS JURISDICTION O0ER THE SUJECTMATTER OF THE CASE.

III

1HETHER OR NOT (ETITIONER IS A UYER IN *OOD FAITH AND FOR 0ALUE.-B

(et!t!%ner 8a!nta!ns t"at t"e #ase %& T!a8 ). S!b%n"an%y nds n% app'!#at!%n !n t"e#ase at bar, s!n#e t"e sa!d #ase !s n%t %n a'' &%$rs @!t" t"e present #ase. Un'!6e !n

T!a8, @"ere!n t"e pet!t!%ner t"ere!n a#t!)e'y part!#!pated !n t"e pr%#eed!ns,pet!t!%ner "ere!n asserts t"at s"e d!d n%t part!#!pate !n any pr%#eed!ns be&%re t"eRTC be#a$se s"e @as de#'ared !n de&a$'t.

(et!t!%ner !ns!sts t"at s$88%ns @as n%t )a'!d'y ser)ed $p%n "er, #%ns!der!n t"at att"e t!8e s$88%ns @as ser)ed, s"e @as res!d!n !n Japan. (et!t!%ner #%ntends t"atp$rs$ant t% Se#t!%n -5, R$'e -> %& t"e R$'es %& C!)!' (r%#ed$re, @"en t"e de&endantd%es n%t res!de !n t"e ("!'!pp!nes and t"e s$be#t %& t"e a#t!%n !s pr%perty @!t"!n t"e("!'!pp!nes %& t"e de&endant, ser)!#e 8ay be ee#ted %$t %& t"e ("!'!pp!nes bypers%na' ser)!#e %r by p$b'!#at!%n !n a ne@spaper %& enera' #!r#$'at!%n. In t"!s #ase,

s$88%ns @as ser)ed %n'y by s$bst!t$ted ser)!#e t% "er 8%t"er. Hen#e, t"e #%$rt d!dn%t a#K$!re $r!sd!#t!%n %)er "er pers%n.

A's%, pet!t!%ner p%s!ts t"at t"e #%$rt 'a#6s $r!sd!#t!%n %& t"e s$be#t 8atter,#%ns!der!n t"at &r%8 t"e #%8p'a!nt, !t #an be !n&erred t"at t"e )a'$e %& t"e pr%perty@as %n'y (>,777.77, @"!#" @as t"e a8%$nt a''eed by resp%ndents t"at t"e pr%perty@as s%'d t% pet!t!%ner by L%rna.

F!na''y, pet!t!%ner stresses t"at s"e @as a b$yer !n %%d &a!t". It @as Ma$ra @"%

de&ra$ded t"e resp%ndents by se''!n t"e pr%perty t% L%rna @!t"%$t t"e!r a$t"%r!ty.

Resp%ndents, %n t"e %t"er "and, ar$e t"at t"e CA @as #%rre#t !n r$'!n !n t"e!r&a)%r.

T"e pet!t!%n !s 8er!t%r!%$s.

Resp%ndents 'ed t"e #%8p'a!nt !n -999, at t"e t!8e atas (a8bansa '. :(; -9,t"e J$d!#!ary Re%ran!?at!%n A#t %& -9<7, @as a'ready a8ended by Rep$b'!# A#t :RA;N%. =49-, An A#t Epand!n t"e J$r!sd!#t!%n %& t"e Metr%p%'!tan Tr!a' C%$rts,M$n!#!pa' Tr!a' C%$rts, and M$n!#!pa' C!r#$!t Tr!a' C%$rts, a8end!n &%r t"e p$rp%se( '. -9.->

Se#t!%n - %& RA =49-, a8end!n ( '. -9, pr%)!des t"at t"e RTC s"a'' eer#!see#'$s!)e %r!!na' $r!sd!#t!%n %n t"e &%''%@!n a#t!%ns3

Se#t!%n -. Se#t!%n -9 %& atas (a8bansa '. -9, %t"er@!se 6n%@n as t"e J$d!#!aryRe%ran!?at!%n A#t %& -9<7, !s "ereby a8ended t% read as &%''%@s3

Se#. -9. J$r!sd!#t!%n !n #!)!' #ases. Re!%na' Tr!a' C%$rts s"a'' eer#!se e#'$s!)e%r!!na' $r!sd!#t!%n3

:-; In a'' #!)!' a#t!%ns !n @"!#" t"e s$be#t %& t"e '!t!at!%n !s !n#apab'e %& pe#$n!aryest!8at!%n/

:; In a'' #!)!' a#t!%ns @"!#" !n)%')e t"e t!t'e t%, %r p%ssess!%n %&, rea' pr%perty, %r any!nterest t"ere!n, @"ere t"e assessed )a'$e %& t"e pr%perty !n)%')ed e#eeds T@enty

T"%$sand (es%s :(7,777.77; %r &%r #!)!' a#t!%ns !n Metr% Man!'a, @"ere s$#" )a'$ee#eeds F!&ty T"%$sand (es%s :(57,777.77;, e#ept a#t!%ns &%r &%r#!b'e entry !nt% and$n'a@&$' deta!ner %& 'ands %r b$!'d!ns, %r!!na' $r!sd!#t!%n %)er @"!#" !s #%n&erred

$p%n t"e Metr%p%'!tan Tr!a' C%$rts, M$n!#!pa' Tr!a' C%$rts, and M$n!#!pa' C!r#$!t Tr!a'C%$rts/

Se#t!%n B %& RA =49- epanded t"e e#'$s!)e %r!!na' $r!sd!#t!%n %& t"e rst 'e)e'#%$rts, t"$s3

Se#t!%n B. Se#t!%n BB %& t"e sa8e 'a@ ( '. -9 !s "ereby a8ended t% read as&%''%@s3

Se#. BB. J$r!sd!#t!%n %& Metr%p%'!tan Tr!a' C%$rts, M$n!#!pa' Tr!a' C%$rts and M$n!#!pa'C!r#$!t Tr!a' C%$rts !n C!)!' Cases. Metr%p%'!tan Tr!a' C%$rts, M$n!#!pa' Tr!a' C%$rts,and M$n!#!pa' C!r#$!t Tr!a' C%$rts s"a'' eer#!se3

-7



INTRODUCTION

:B; E#'$s!)e %r!!na' $r!sd!#t!%n !n a'' #!)!' a#t!%ns @"!#" !n)%')e t!t'e t%, %rp%ssess!%n %&, rea' pr%perty, %r any !nterest t"ere!n @"ere t"e assessed )a'$e %& t"epr%perty %r !nterest t"ere!n d%es n%t e#eed T@enty T"%$sand (es%s :(7,777.77;%r, !n #!)!' a#t!%ns !n Metr% Man!'a, @"ere s$#" assessed )a'$e d%es n%t e#eed F!&ty

T"%$sand (es%s :(57,777.77; e#'$s!)e %& !nterest, da8aes %& @"ate)er 6!nd,att%rneys &ees, '!t!at!%n epenses and #%sts3 (r%)!ded, T"at !n #ases %& 'and n%tde#'ared &%r taat!%n p$rp%ses, t"e )a'$e %& s$#" pr%perty s"a'' be deter8!ned byt"e assessed )a'$e %& t"e ada#ent '%ts.

Resp%ndents 'ed t"e!r C%8p'a!nt @!t" t"e RTC/ "en#e, be&%re pr%#eed!n any&$rt"er @!t" any %t"er !ss$es ra!sed by t"e pet!t!%ner, !t !s essent!a' t% as#erta!n@"et"er t"e RTC "as $r!sd!#t!%n %)er t"e s$be#t 8atter %& t"!s #ase based %n t"eab%)e+K$%ted pr%)!s!%ns.

H%@e)er, !n %rder t% deter8!ne @"!#" #%$rt "as $r!sd!#t!%n %)er t"e a#t!%n, anea8!nat!%n %& t"e #%8p'a!nt !s essent!a'. as!# as a "%rnb%%6 pr!n#!p'e !s t"at

$r!sd!#t!%n %)er t"e s$be#t 8atter %& a #ase !s #%n&erred by 'a@ and deter8!ned byt"e a''eat!%ns !n t"e #%8p'a!nt @"!#" #%8pr!se a #%n#!se state8ent %& t"e $'t!8ate&a#ts #%nst!t$t!n t"e p'a!nt!s #a$se %& a#t!%n. T"e nat$re %& an a#t!%n, as @e'' as@"!#" #%$rt %r b%dy "as $r!sd!#t!%n %)er !t, !s deter8!ned based %n t"e a''eat!%ns#%nta!ned !n t"e #%8p'a!nt %& t"e p'a!nt!, !rrespe#t!)e %& @"et"er %r n%t t"e p'a!nt!!s ent!t'ed t% re#%)er $p%n a'' %r s%8e %& t"e #'a!8s asserted t"ere!n. T"e a)er8ents!n t"e #%8p'a!nt and t"e #"ara#ter %& t"e re'!e& s%$"t are t"e %nes t% be #%ns$'ted.

On#e )ested by t"e a''eat!%ns !n t"e #%8p'a!nt, $r!sd!#t!%n a's% re8a!ns )ested!rrespe#t!)e %& @"et"er %r n%t t"e p'a!nt! !s ent!t'ed t% re#%)er $p%n a'' %r s%8e %&t"e #'a!8s asserted t"ere!n.-5

1"at deter8!nes t"e $r!sd!#t!%n %& t"e #%$rt !s t"e nat$re %& t"e a#t!%n p'eaded asappear!n &r%8 t"e a''eat!%ns !n t"e #%8p'a!nt. T"e a)er8ents t"ere!n and t"e#"ara#ter %& t"e re'!e& s%$"t are t"e %nes t% be #%ns$'ted.-4

Resp%ndentsP C%8p'a!nt-= narrates t"at t"ey are t"e d$'y re!stered %@ners %& L%tN%. 45 %& t"e L!8ay Cadastre @"!#" @as #%)ered by TCT N%. T+-7547. 1!t"%$tt"e!r 6n%@'ede and #%nsent, t"e 'and @as d!)!ded !nt% se)era' '%ts $nder t"e!rna8es t"r%$" t"e &ra$d$'ent 8an!p$'at!%ns %& Ma$ra. One %& t"e '%ts @as L%t 45+2, @"!#" @as #%)ered by TCT N%. -B>=<5. On Apr!' 4, -997, Ma$ra s%'d t"e s$be#t'%t t% L%rna. y )!rt$e %& t"e #t!t!%$s sa'e, TCT N%. -B>=<5 @as #an#e''ed and TCTN%. -B>9B @as !ss$ed !n t"e na8e %& L%rna. S%8et!8e !n A$$st -997, L%rna s%'d

t"e '%t t% pet!t!%ner &%r a #%ns!derat!%n !n t"e a8%$nt %& (>,777.77. TCT N%. -B>9B@as 'ater #an#e''ed and TCT N%. -B=>44 @as !ss$ed !n t"e na8e %& pet!t!%ner.Desp!te de8ands &r%8 t"e resp%ndents, pet!t!%ner re&$sed t% s$rrender p%ssess!%n%& t"e s$be#t pr%perty. Resp%ndents @ere t"$s #%nstra!ned t% enae t"e ser)!#es%& a 'a@yer and !n#$r epenses &%r '!t!at!%n. Resp%ndents prayed &%r t"e RTC :a; t%de#'are TCT N%. -B=>44 n$'' and t% re)!)e TCT N%. T+-7547 @"!#" @as %r!!na''y!ss$ed and re!stered !n t"e na8e %& t"e resp%ndents/ and :b; t% %rder pet!t!%ner t%pay att%rneyPs &ees !n t"e s$8 %& (57,777.77 and '!t!at!%n epenses %& (7,777.77,p'$s #%st %& s$!t.-<

An a#t!%n !n)%')!n t!t'e t% rea' pr%perty 8eans t"at t"e p'a!nt!s #a$se %& a#t!%n!s based %n a #'a!8 t"at "e %@ns s$#" pr%perty %r t"at "e "as t"e 'ea' r!"ts t%"a)e e#'$s!)e #%ntr%', p%ssess!%n, en%y8ent, %r d!sp%s!t!%n %& t"e sa8e. T!t'e !st"e 'ea' '!n6 bet@een :-; a pers%n @"% %@ns pr%perty and :; t"e pr%perty !tse'&.

T!t'e !s d!erent &r%8 a #ert!#ate %& t!t'e @"!#" !s t"e d%#$8ent %& %@ners"!p$nder t"e T%rrens syste8 %& re!strat!%n !ss$ed by t"e %)ern8ent t"r%$" t"eRe!ster %& Deeds. 1"!'e t!t'e !s t"e #'a!8, r!"t %r !nterest !n rea' pr%perty, a#ert!#ate %& t!t'e !s t"e e)!den#e %& s$#" #'a!8.-9

In t"e present #%ntr%)ersy, be&%re t"e re'!e& prayed &%r by t"e resp%ndents !n t"e!r#%8p'a!nt #an be ranted, t"e !ss$e %& @"% bet@een t"e t@% #%ntend!n part!es "ast"e )a'!d t!t'e t% t"e s$be#t '%t 8$st rst be deter8!ned be&%re a deter8!nat!%n %&@"% bet@een t"e8 !s 'ea''y ent!t'ed t% t"e #ert!#ate %& t!t'e #%)er!n t"e pr%perty

!n K$est!%n.-@p"!-Fr%8 t"e C%8p'a!nt, t"e #ase 'ed by resp%ndent !s n%t s!8p'y a #ase &%r t"e#an#e''at!%n %& a part!#$'ar #ert!#ate %& t!t'e and t"e re)!)a' %& an%t"er. T"edeter8!nat!%n %& s$#" !ss$e 8ere'y &%''%@s a&ter a #%$rt %& #%8petent $r!sd!#t!%ns"a'' "a)e rst res%')ed t"e 8atter %& @"% bet@een t"e #%n!#t!n part!es !s t"e'a@&$' %@ner %& t"e s$be#t pr%perty and $'t!8ate'y ent!t'ed t% !ts p%ssess!%n anden%y8ent. T"e a#t!%n !s, t"ere&%re, ab%$t as#erta!n!n @"!#" %& t"ese part!es !s t"e'a@&$' %@ner %& t"e s$be#t '%t, $r!sd!#t!%n %)er @"!#" !s deter8!ned by t"e assessed)a'$e %& s$#" '%t.7

In n% $n#erta!n ter8s, t"e C%$rt "as a'ready "e'd t"at a #%8p'a!nt 8$st a''ee t"eassessed )a'$e %& t"e rea' pr%perty s$be#t %& t"e #%8p'a!nt %r t"e !nterest t"ere%nt% deter8!ne @"!#" #%$rt "as $r!sd!#t!%n %)er t"e a#t!%n.- In t"e #ase at bar, t"e%n'y bas!s %& )a'$at!%n %& t"e s$be#t pr%perty !s t"e )a'$e a''eed !n t"e #%8p'a!nt

t"at t"e '%t @as s%'d by L%rna t% pet!t!%ner !n t"e a8%$nt %& (>,777.77. N% tade#'arat!%n @as e)en presented t"at @%$'d s"%@ t"e )a'$at!%n %& t"e s$be#tpr%perty. In &a#t, !n %ne %& t"e "ear!ns, resp%ndentsP #%$nse' !n&%r8ed t"e #%$rtt"at t"ey @!'' present t"e ta de#'arat!%n %& t"e pr%perty !n t"e net "ear!n s!n#et"ey "a)e n%t yet %bta!ned a #%py &r%8 t"e (r%)!n#!a' Assess%rPs O#e. H%@e)er,t"ey d!d n%t present s$#" #%py.

T% re!terate, @"ere t"e $'t!8ate %be#t!)e %& t"e p'a!nt!s !s t% %bta!n t!t'e t% rea'pr%perty, !t s"%$'d be 'ed !n t"e pr%per #%$rt "a)!n $r!sd!#t!%n %)er t"e assessed)a'$e %& t"e pr%perty s$be#t t"ere%&.B S!n#e t"e a8%$nt a''eed !n t"e C%8p'a!ntby resp%ndents &%r t"e d!sp$ted '%t !s %n'y (>,777.77, t"e MTC and n%t t"e RTC "as

$r!sd!#t!%n %)er t"e a#t!%n. T"ere&%re, a'' pr%#eed!ns !n t"e RTC are n$'' and)%!d.>

C%nseK$ent'y, t"e re8a!n!n !ss$es ra!sed by pet!t!%ner need n%t be d!s#$ssed

&$rt"er.

1HEREFORE, t"e pet!t!%n !s *RANTED. T"e De#!s!%n %& t"e C%$rt %& Appea's !n CA+*.R. C0 N%. <49<B, dated J$ne 9, 77=, and !ts Res%'$t!%n dated O#t%ber B, 77=,are RE0ERSED and SET ASIDE. T"e De#!s!%n %& t"e Re!%na' Tr!a' C%$rt, dated J$'y I,775, !s de#'ared NULL and 0OID. T"e #%8p'a!nt !n C!)!' Case N%. >B<+ML !sd!s8!ssed @!t"%$t pre$d!#e.

SO ORDERED.

*.R. N%. -=7B5> J$ne B7, 774

ED*ARDO (IN*A, (et!t!%ner,)s.

--



INTRODUCTION THE HEIRS OF *ERMAN, SANTIA*O represented by FERNANDO SANTIA*O,Resp%ndents.

D E C I S I O N

TIN*A, J.3

T"e #%nst!t$t!%na' &a#$'ty %& t"e C%$rt t% pr%8$'ate r$'es %& pra#t!#e andpr%#ed$rene#essar!'y #arr!es t"e p%@er t% %)ert$rn $d!#!a' pre#edents %n p%!nts %&

re8ed!a' 'a@ t"r%$" t"e a8end8ent %& t"e R$'es %& C%$rt. One %& t"e n%tab'e#"anes !ntr%d$#ed !n t"e -99= R$'es %& C!)!' (r%#ed$re !s t"e ep'!#!t pr%)!s% t"at !&a #%8p'a!nt !s d!s8!ssed d$e t% &a$'t %& t"e p'a!nt!, s$#" d!s8!ssa' !s @!t"%$tpre$d!#e t% t"e r!"t %& t"e de&endant t% pr%se#$te "!s #%$nter#'a!8 !n t"e sa8e %r!n a separate a#t!%n. T"e !nn%)at!%n @as !nst!t$ted !n sp!te %& pre)!%$s

$r!spr$den#e "%'d!n t"at t"e &a#t %& t"e d!s8!ssa' %& t"e #%8p'a!nt @as s$#!ent t% $st!&y t"e d!s8!ssa' as @e'' %& t"e #%8p$'s%ry #%$nter#'a!8.B

In rant!n t"!s pet!t!%n, t"e C%$rt re#%n!?es t"at t"e &%r8er $r!spr$dent!a' r$'e #ann% '%ner stand !n '!"t %& Se#t!%n B, R$'e -= %& t"e -99= R$'es %& C!)!' (r%#ed$re.

T"e re'e)ant &a#ts are s!8p'e en%$". (et!t!%ner Ed$ard% (!na @as na8ed as %ne %& t@% de&endants !n a #%8p'a!nt &%r !n$n#t!%n> 'ed @!t" ran#" 9 %& t"e Re!%na'

Tr!a' C%$rt :RTC;5 %& San M!$e', Za8b%ana de' S$r, by resp%ndent He!rs %& *er8anSant!a%, represented by Fernand% Sant!a%. T"e C%8p'a!nt4 dated < May -99<

a''eed !n essen#e t"at pet!t!%ner and #%+de&endant 0!#ente Saa)edra "ad been$n'a@&$''y enter!n t"e #%#% 'ands %& t"e resp%ndent, #$tt!n @%%d and ba8b%%sand "ar)est!n t"e &r$!ts %& t"e #%#%n$t trees t"ere!n. Resp%ndents prayed t"atpet!t!%ner and Saa)edra be en%!ned &r%8 #%88!tt!n a#ts %& depredat!%n %n t"e!rpr%pert!es, and %rdered t% pay da8aes.

In t"e!r A8ended Ans@er @!t" C%$nter#'a!8,= pet!t!%ner and "!s #%+de&endantd!sp$ted resp%ndentsP %@ners"!p %& t"e pr%pert!es !n K$est!%n, assert!n t"atpet!t!%nerPs &at"er, Ed8$nd% (!na, &r%8 @"%8 de&endants der!)ed t"e!r !nterest !nt"e pr%pert!es, "ad been !n p%ssess!%n t"ere%& s!n#e t"e -9B7s.< T"ey a''eed t"atas &ar ba#6 as -94<, resp%ndents "ad a'ready been %rdered ee#ted &r%8 t"epr%pert!es a&ter a #%8p'a!nt &%r &%r#!b'e entry @as 'ed by t"e "e!rs %& Ed8$nd%(!na. It @as &$rt"er #'a!8ed t"at resp%ndentsP app'!#at!%n &%r &ree patent %)er t"epr%pert!es @as ree#ted by t"e O#e %& t"e (res!dent !n -9=-. De&endants !n t$rnprayed t"at %@!n t% resp%ndentsP &%r#!b'e re+entry !n t"e pr%pert!es and t"e

!rresp%ns!b'e and re#6'ess '!n %& t"e #ase, t"ey be a@arded )ar!%$s types %&da8aes !nstead !n a8%$nts t%ta'!n (,-77,777 p'$s #%sts %& s$!t.9

y J$'y %& 775, t"e tr!a' %& t"e #ase "ad n%t yet been #%8p'eted. M%re%)er,resp%ndents, as p'a!nt!s, "ad &a!'ed t% present t"e!r e)!den#e. It appears t"at %n 5O#t%ber 77>, t"e RTC a'ready %rdered t"e d!s8!ssa' %& t"e #%8p'a!nt a&terresp%ndentsP #%$nse' "ad s%$"t t"e p%stp%ne8ent %& t"e "ear!n s#"ed$'edt"en.-7 H%@e)er, t"e %rder %& d!s8!ssa' @as s$bseK$ent'y re#%ns!dered by t"e RTC!n an Order dated 9 J$ne 775, @"!#" t%%6 !nt% a##%$nt t"e ass$ran#e %&resp%ndentsP #%$nse' t"at "e @%$'d !)e pr!%r!ty t% t"at #ase.--

At t"e "ear!n %& = J$'y 775, p'a!nt!sP #%$nse' %n re#%rd &a!'ed t% appear, send!n!n "!s stead a representat!)e @"% s%$"t t"e p%stp%ne8ent %& t"e "ear!n. C%$nse'&%r de&endants :@"% !n#'$de "ere!n pet!t!%ner; %pp%sed t"e 8%)e &%r p%stp%ne8ent

and 8%)ed !nstead &%r t"e d!s8!ssa' %& t"e #ase. T"e RTC n%ted t"at !t @as %b)!%$st"at resp%ndents "ad &a!'ed t% pr%se#$te t"e #ase &%r an $nreas%nab'e 'ent" %&t!8e, !n &a#t n%t "a)!n presented t"e!r e)!den#e yet. On t"at r%$nd, t"e #%8p'a!nt@as d!s8!ssed. At t"e sa8e t!8e, t"e RTC a''%@ed de&endants t% present t"e!re)!den#e e+parte.-

Resp%ndents 'ed a M%t!%n &%r Re#%ns!derat!%n-B %& t"e %rder !ss$ed !n %pen #%$rt%n = J$'y 775, %pt!n "%@e)er n%t t% see6 t"at t"e!r #%8p'a!nt be re!nstated, b$tpray!n !nstead t"at t"e ent!re a#t!%n be d!s8!ssed and pet!t!%ner be d!sa''%@ed

&r%8 present!n e)!den#e e+parte. Resp%ndents #'a!8ed t"at t"e %rder %& t"e RTCa''%@!n pet!t!%ner t% present e)!den#e e+parte @as n%t !n a##%rd @!t" estab'!s"ed $r!spr$den#e. T"ey #!ted #ases, part!#$'ar'y C!ty %& Man!'a ). R$y8ann-> andD%8!n% ). Sant%s,-5 @"!#" n%ted t"%se !nstan#es !n @"!#" a #%$nter#'a!8 #%$'dn%t re8a!n pend!n &%r !ndependent ad$d!#at!%n.

On 9 A$$st 775, t"e RTC pr%8$'ated an %rder rant!n resp%ndentsP M%t!%n &%rRe#%ns!derat!%n and d!s8!ss!n t"e #%$nter#'a!8, #!t!n as t"e %n'y r%$nd t"ere&%rt"at t"ere !s n% %pp%s!t!%n t% t"e M%t!%n &%r Re#%ns!derat!%n %& t"eresp%ndents.-4 (et!t!%ner 'ed a M%t!%n &%r Re#%ns!derat!%n, b$t t"e sa8e @asden!ed by t"e RTC !n an Order dated -7 O#t%ber 775.-= N%tab'y, resp%ndents 'edan Opp%s!t!%n t% De&endantsP Urent M%t!%n &%r Re#%ns!derat!%n, @"ere!n t"eyar$ed t"at t"e pre)a!'!n $r!spr$dent!a' r$'e-< !s t"at #%8p$'s%ry #%$nter#'a!8s#ann%t be ad$d!#ated !ndependent'y %& p'a!nt!Ps #a$se %& a#t!%n, and a #%n)ers$,t"e d!s8!ssa' %& t"e #%8p'a!nt #arr!es @!t" !t t"e d!s8!ssa' %& t"e #%8p$'s%ry

#%$nter#'a!8s.-9

T"e 8atter @as e'e)ated t% t"!s C%$rt d!re#t'y by @ay %& a (et!t!%n &%r Re)!e@ $nderR$'e >5 %n a p$re K$est!%n %& 'a@, t"e 8%st re'e)ant be!n @"et"er t"e d!s8!ssa' %&t"e #%8p'a!nt ne#essar!'y #arr!es t"e d!s8!ssa' %& t"e #%8p$'s%ry #%$nter#'a!8.

1e "%'d t"at $nder Se#t!%n B, R$'e -= %& t"e -99= R$'es %& C!)!' (r%#ed$re, t"ed!s8!ssa' %& t"e #%8p'a!nt d$e t% t"e &a$'t %& p'a!nt! d%es n%t ne#essar!'y #arry @!t"!t t"e d!s8!ssa' %& t"e #%$nter#'a!8, #%8p$'s%ry %r %t"er@!se. In &a#t, t"e d!s8!ssa'%& t"e #%8p'a!nt !s @!t"%$t pre$d!#e t% t"e r!"t %& de&endants t% pr%se#$te t"e#%$nter#'a!8.

On a pre&at%ry n%te, t"e RTC, !n d!s8!ss!n t"e #%$nter#'a!8, d!d n%t epress'y ad%ptresp%ndentsP ar$8ent t"at t"e d!s8!ssa' %& t"e!r #%8p'a!nt etended as @e'' t% t"e#%$nter#'a!8. Instead, t"e RTC $st!ed t"e d!s8!ssa' %& t"e #%$nter#'a!8 %n t"e

r%$nd t"at t"ere !s n% %pp%s!t!%n t% p'a!nt!Ps M%t!%n &%r Re#%ns!derat!%nsee6!n t"e d!s8!ssa' %& t"e #%$nter#'a!8.7 T"!s ep'anat!%n !s "%''%@,#%ns!der!n t"at t"ere !s n% 8andat%ry r$'e reK$!r!n t"at an %pp%s!t!%n be 'ed t% a8%t!%n &%r re#%ns!derat!%n @!t"%$t need &%r a #%$rt %rder t% t"at ee#t/ and, asp%s!ted by pet!t!%ner, t"e &a!'$re t% 'e an %pp%s!t!%n t% t"e ('a!nt!Ps M%t!%n &%rRe#%ns!derat!%n !s den!te'y n%t %ne a8%n t"e estab'!s"ed r%$nds &%r d!s8!ssa'%& t"e #%$nter#'a!8.- St!'', t"e d!s8!ssa' %& t"e #%$nter#'a!8 by t"e RTC betraysat )ery 'east a ta#!t re#%n!t!%n %& resp%ndentsP ar$8ent t"at t"e #%$nter#'a!8 d!dn%t s$r)!)e t"e d!s8!ssa' %& t"e #%8p'a!nt. At 8%st, t"e d!s8!ssa' %& t"e#%$nter#'a!8 %)er t"e %be#t!%n %& t"e de&endant :"ere!n pet!t!%ner; %n r%$nds%t"er t"an t"e 8er!ts %& t"e #%$nter#'a!8, desp!te t"e pr%)!s!%ns $nder R$'e -= %&t"e -99= R$'es %& C!)!' (r%#ed$re, #%nst!t$tes a debatab'e K$est!%n %& 'a@, present'y8er!t!n $st!#!ab!'!ty t"r%$" t"e !nstant a#t!%n. Indeed, !n re)!e@!n t"e assa!'ed%rders %& t"e RTC, !t !s !ne)!tab'e t"at t"e C%$rt #%ns!der @"et"er t"e d!s8!ssa' %&

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INTRODUCTIONr%$nds, t"at t"e #%$nter#'a!8 #%$'d n% '%ner "a)e been "eard a&ter t"e d!s8!ssa'%& t"e #%8p'a!nt. 1"!'e t"e C%$rt n%ted t"at t"e ad$d!#at!%n %& t"e #%$nter#'a!8 !nK$est!%n d%es n%t depend $p%n t"e ad$d!#at!%n %& t"e #'a!8s 8ade !n t"e#%8p'a!nt s!n#e t"ey @ere )!rt$a''y aband%ned by t"e n%n+appearan#e %& t"ep'a!nt!s t"e8se')es, !t @as a's% added t"at t"e d%#tr!ne !n)%6ed !s n%t a)a!'ab'et% p'a!nt!s '!6e t"e pet!t!%ners, @"% pre)ent %r de'ay t"e "ear!n %& t"e!r %@n #'a!8sand a''eat!%ns.B= T"e C%$rt, t"r%$" J$st!#e JL Reyes, n%ted3

T"e d%#tr!ne t"at t"e #%8p'a!nt 8ay n%t be d!s8!ssed !& t"e #%$nter#'a!8 #ann%t be

!ndependent'y ad$d!#ated !s n%t a)a!'ab'e t%, and @as n%t !ntended &%r t"e benet%&, a p'a!nt! @"% pre)ents %r de'ays t"e pr%se#$t!%n %& "!s %@n #%8p'a!nt.Ot"er@!se, t"e tr!a' %& #%$nter#'a!8s @%$'d be 8ade t% depend $p%n t"e 8ane$)ers%& t"e p'a!nt!, and t"e r$'e @%$'d %er a pre8!$8 t% )e!n %r de'ay!n ta#t!#s t%t"e pre$d!#e %& t"e #%$nter#'a!8ants. It !s !n t"e sa8e sp!r!t t"at @e "a)e r$'ed t"ata #%8p'a!nt 8ay n%t be @!t"dra@n %)er t"e %pp%s!t!%n %& t"e de&endant @"ere t"e#%$nter#'a!8 !s %ne t"at ar!ses &r%8, %r !s ne#essar!'y #%nne#ted @!t", t"e p'a!nt!Psa#t!%n and #ann%t re8a!n pend!n &%r !ndependent ad$d!#at!%n.B<

T"ere !s n% d%$bt t"at $nder t"e -94> R$'es, t"e d!s8!ssa' %& a #%8p'a!nt d$e t% t"e&a!'$re %& t"e p'a!nt! t% appear d$r!n pre+tr!a', as @"at "ad "appened !n Sta. Mar!a,&e'' @!t"!n t"e #%)erae %& Se#t!%n B, R$'e -=. On t"e %t"er "and, Se#t!%n @as#'ear'y '!8!ted !n s#%pe t% t"%se d!s8!ssa's s$sta!ned at t"e !nstan#e %& t"ep'a!nt!.B9 N%net"e'ess, by t"e ear'y -997s, $r!spr$den#e @as sett'!n %n a r$'et"at #%8p$'s%ry #%$nter#'a!8s @ere ne#essar!'y ter8!nated $p%n t"e d!s8!ssa' %&

t"e #%8p'a!nt n%t %n'y !& s$#" d!s8!ssa' @as $p%n 8%t!%n %& t"e p'a!nt!, b$t at t"e!nstan#e %& t"e de&endant as @e''. T@% de#!s!%ns &r%8 t"at per!%d stand %$t !n t"!sreard, Meta's En!neer!n Res%$r#es C%rp. ). C%$rt %& Appea's>7 and Internat!%na'C%nta!ner Ter8!na' Ser)!#es ). C%$rt %& Appea's.>-

In Meta's, t"e #%8p'a!nt @as ep$ned &r%8 t"e re#%rd a&ter t"e de&endant "ad 'eda 8%t!%n &%r re#%ns!derat!%n %& a tr!a' #%$rt %rder a''%@!n t"e '!n %& an a8ended#%8p'a!nt t"at #%rre#ted a $r!sd!#t!%na' err%r !n t"e %r!!na' #%8p'a!nt perta!n!n t%t"e spe#!#at!%n %& t"e a8%$nt %& da8aes s%$"t. 1"en t"e de&endant @asn%net"e'ess a''%@ed t% present e)!den#e %n t"e #%$nter#'a!8, t"e p'a!nt! assa!'eds$#" a''%@an#e %n t"e r%$nd t"at t"e #%$nter#'a!8 @as #%8p$'s%ry and #%$'d n%'%ner re8a!n pend!n &%r !ndependent ad$d!#at!%n. T"e C%$rt, !n nd!n &%r t"ep'a!nt!, n%ted t"at t"e #%$nter#'a!8 @as !ndeed #%8p$'s%ry !n nat$re, and as s$#",@as a$!'!ary t% t"e pr%#eed!n !n t"e %r!!na' s$!t and der!)ed !ts $r!sd!#t!%na's$pp%rt t"ere&r%8.> It @as &$rt"er ep'a!ned t"at t"e d%#tr!ne @as !n #%ns%nan#e

@!t" t"e pr!8ary %be#t!)e %& a #%$nter#'a!8, @"!#" @as t% a)%!d and pre)ent#!r#$!try %& a#t!%n by a''%@!n t"e ent!re #%ntr%)ersy bet@een t"e part!es t% be'!t!ated and na''y deter8!ned !n %ne a#t!%n, and t% d!s#%$rae 8$'t!p'!#!ty %&s$!ts.>B A's%, t"e C%$rt n%ted t"at s!n#e t"e #%8p'a!nt @as d!s8!ssed &%r 'a#6 %&

$r!sd!#t!%n, !t @as as !& n% #'a!8 @as 'ed aa!nst t"e de&endant, and t"ere @as t"$sn% 8%re 'e &%r t"e #%8p'a!nt t% stand %n.>>

In Internat!%na' C%nta!ner, t"e de&endant 'ed a 8%t!%n t% d!s8!ss @"!#" @asranted by t"e tr!a' #%$rt. T"e de&endantPs #%$nter#'a!8 @as d!s8!ssed as @e''. T"eC%$rt s$88ar!?ed t"e 6ey K$est!%n as @"at !s t"e ee#t %& t"e d!s8!ssa' %& a#%8p'a!nt %rdered at t"e !nstan#e %& t"e de&endant $p%n a #%8p$'s%ry #%$nter#'a!8d$'y ra!sed !n !ts ans@er.>5 T"en !t r$'ed t"at t"e #%$nter#'a!8 d!d n%t s$r)!)e s$#"d!s8!ssa'. A&ter #'ass!&y!n t"e #%$nter#'a!8 t"ere!n as #%8p$'s%ry, t"e C%$rt n%tedt"at !t !s %b)!%$s &r%8 t"e )ery nat$re %& t"e #%$nter#'a!8 t"at !t #%$'d n%t re8a!n

pend!n &%r !ndependent ad$d!#at!%n, t"at !s, @!t"%$t ad$d!#at!%n by t"e #%$rt %&t"e #%8p'a!nt !tse'& %n @"!#" t"e #%$nter#'a!8 @as based.>4

T"en !n -99B, a d!)!ded C%$rt r$'ed !n A F!nan#e t"at t"e d!s8!ssa' %& t"e #%8p'a!nt&%r n%nappearan#e %& p'a!nt! at t"e pre+tr!a', $p%n 8%t!%n %& t"e de&endants,#arr!ed @!t" !t t"e d!s8!ssa' %& t"e!r #%8p$'s%ry #%$nter#'a!8.>= T"e C%$rtre!terated t"e r$'e t"at a #%8p$'s%ry #%$nter#'a!8 #ann%t re8a!n pend!n &%r!ndependent ad$d!#at!%n by t"e #%$rtW as !t !s a$!'!ary t% t"e pr%#eed!n !n t"e%r!!na' s$!t and 8ere'y der!)es !ts $r!sd!#t!%na' s$pp%rt t"ere&r%8.>< Epress

re'!an#e @as 8ade %n Meta's, Internat!%na' C%nta!ner, and e)en Da'8an !n s$pp%rt%& t"e 8a%r!tyPs t"es!s. A F!nan#e '!6e@!se ad)!sed t"at t"e pr%per re8edy &%rde&endants des!r%$s t"at t"e!r #%$nter#'a!8s n%t be d!s8!ssed a'%n @!t" t"e 8a!n#%8p'a!nt @as &%r t"e8 t% 8%)e t% de#'are t"e p'a!nt!s t% be n%n+s$!ted %n t"e!r#%8p'a!nt and as !n de&a$'t %n t"e!r #%8p$'s%ry #%$nter#'a!8, !nstead %& 8%)!n&%r t"e d!s8!ssa' %& t"e #%8p'a!nt.>9

J$st!#e Rea'ad%, %!ned by C"!e& J$st!#e Nar)asa, re!stered a str%n %be#t!%n t%t"e t"e%ry %& t"e 8a%r!ty. T"ey areed t"at t"e tr!a' #%$rt #%$'d n% '%ner "ear t"e#%$nter#'a!8, b$t %n'y %n t"e r%$nd t"at de&endantPs 8%t!%n t% be a''%@ed t%present e)!den#e %n t"e #%$nter#'a!8 @as 'ed a&ter t"e %rder d!s8!ss!n t"e#%8p'a!nt "ad a'ready be#%8e na'. T"ey d!sareed "%@e)er t"at t"e #%8p$'s%ry#%$nter#'a!8 @as ne#essar!'y d!s8!ssed a'%n @!t" t"e 8a!n #%8p'a!nt, p%!nt!n %$tt"at a s!t$at!%n @"ere!n t"e d!s8!ssa' %& t"e #%8p'a!nt @as %##as!%ned by p'a!nt!Ps&a!'$re t% appear d$r!n pre+tr!a' @as %)erned $nder Se#t!%n B, R$'e -=, and n%t

Se#t!%n %& t"e sa8e r$'e. J$st!#e Rea'ad%, @"% !r%n!#a''y penned t"e de#!s!%n !nMeta's #!ted by t"e 8a%r!ty, ep'a!ned3

T$rn!n ba#6 t% R$'e -=, !t !s read!'y apparent t"at Se#t!%ns and B t"ere%& en)!saed!erent &a#t$a' and ade#t!)e s!t$at!%ns. T"e d!s8!ssa' %& t"e #%8p'a!nt $nderSe#t!%n !s at t"e !nstan#e %& p'a!nt!, &%r @"ate)er reas%n "e !s 8!nded t% 8%)e &%rs$#" d!s8!ssa', and, as a 8atter %& pr%#ed$re, !s @!t"%$t pre$d!#e $n'ess %t"er@!sestated !n t"e %rder %& t"e #%$rt %r, &%r t"at 8atter, !n p'a!nt!s 8%t!%n t% d!s8!ss "!s%@n #%8p'a!nt. y reas%n t"ere%&, t% #$rb any d$b!%$s %r &r!)%'%$s stratey %&p'a!nt! &%r "!s benet %r t% %b)!ate p%ss!b'e pre$d!#e t% de&endant, t"e &%r8er 8ayn%t d!s8!ss "!s #%8p'a!nt %)er t"e de&endants %be#t!%n !& t"e 'atter "as a#%8p$'s%ry #%$nter#'a!8 s!n#e sa!d #%$nter#'a!8 @%$'d ne#essar!'y be d!)ested %&

$r!d!#a' bas!s and de&endant @%$'d be depr!)ed %& p%ss!b'e re#%)ery t"ere%n !n t"atsa8e $d!#!a' pr%#eed!n.

Se#t!%n B, %n t"e %t"er "and, #%nte8p'ates a d!s8!ssa' n%t pr%#$red by p'a!nt!,a'be!t $st!ed by #a$ses !8p$tab'e t% "!8 and @"!#", !n t"e present #ase, @aspet!t!%ners &a!'$re t% appear at t"e pre+tr!a'. T"!s s!t$at!%n !s a's% #%)ered by Se#t!%nB, as etended by $d!#!a' !nterpretat!%n, and !s %rdered $p%n 8%t!%n %& de&endant %r8%t$ pr%pr!% by t"e #%$rt. Here, t"e !ss$e %& @"et"er de&endant "as a pend!n#%$nter#'a!8, per8!ss!)e %r #%8p$'s%ry, !s n%t %& deter8!nat!)e s!n!#an#e. T"ed!s8!ssa' %& p'a!nt!s #%8p'a!nt !s e)!dent'y a #%nr8at!%n %& t"e &a!'$re %& e)!den#et% pr%)e "!s #a$se %& a#t!%n %$t'!ned t"ere!n, "en#e t"e d!s8!ssa' !s #%ns!dered, as a8atter %& e)!den#e, an ad$d!#at!%n %n t"e 8er!ts. T"!s d%es n%t, "%@e)er, 8eant"at t"ere !s '!6e@!se s$#" absen#e %& e)!den#e t% pr%)e de&endants #%$nter#'a!8a't"%$" t"e sa8e ar!ses %$t %& t"e s$be#t 8atter %& t"e #%8p'a!nt @"!#" @as8ere'y ter8!nated &%r 'a#6 %& pr%%&. T% "%'d %t"er@!se @%$'d n%t %n'y @%r6 !n$st!#et% de&endant b$t @%$'d be read!n a &$rt"er pr%)!s!%n !nt% Se#t!%n B and @rest!n a8ean!n t"ere&r%8 a't"%$" ne!t"er e!sts e)en by 8ere !8p'!#at!%n. T"$s

->



INTRODUCTION$nderst%%d, t"e #%8p'a!nt #an a##%rd!n'y be d!s8!ssed, b$t re'!e& #an ne)ert"e'essbe ranted as a 8atter %& #%$rse t% de&endant %n "!s #%$nter#'a!8 as a''eed andpr%)ed, @!t" %r @!t"%$t any reser)at!%n t"ere&%r %n "!s part, $n'ess &r%8 "!s #%nd$#t,epress %r !8p'!ed, "e "as )!rt$a''y #%nsented t% t"e #%n#%8!tant d!s8!ssa' %& "!s#%$nter#'a!8.57

J$st!#e Rea'ad% a's% ad)erted t% Sta. Mar!a and n%ted t"at t"e %be#t!%ns ra!sedand ree#ted by t"e C%$rt t"ere!n @ere t"e sa8e as t"%se n%@ re'!ed $p%n by t"ep'a!nt!. He p%!nted %$t t"at Da'8an and Internat!%na' C%nta!ner, b%t" re'!ed $p%n

by t"e 8a%r!ty, !n)%')ed t"e app'!#at!%n %& Se#t!%n , R$'e -= and n%t Se#t!%n B,@"!#" "e !ns!sted as t"e app'!#ab'e pr%)!s!%n !n t"e #ase at bar.5-

T"e part!a' d!ssent %& J$st!#e Rea'ad% !n A F!nan#e pr%)ed %pp%rt$ne, as "e"appened t"en t% be a 8e8ber %& t"e R$'es %& C%$rt Re)!s!%n C%88!ttee tas6ed@!t" t"e re)!s!%n %& t"e -94> R$'es %& C%$rt. J$st a &e@ 8%nt"s a&ter A F!nan#e @asde#!ded, J$st!#e Rea'ad% pr%p%sed be&%re t"e C%88!ttee an a8end8ent t% Se#t!%nB, R$'e -= t"at @%$'d ep'!#!t'y pr%)!de t"at t"e d!s8!ssa' %& t"e #%8p'a!nt d$e t%t"e &a$'t %& t"e p'a!nt! s"a'' be @!t"%$t pre$d!#e t% t"e r!"t %& t"e de&endant t%pr%se#$te "!s #%$nter#'a!8 !n t"e sa8e %r !n a separate a#t!%n. T"e a8end8ent,@"!#" @as appr%)ed by t"e C%88!ttee, !s ree#ted !n t"e 8!n$tes %& t"e 8eet!n %&t"e C%88!ttee "e'd %n - O#t%ber -99B3

J$st!#e Rea'ad% t"en pr%p%sed t"at a&ter t"e @%rds $p%n t"e #%$rtPs %@n 8%t!%n!n t"e 4t" '!ne %& t"e dra&t !n Se#. B %& R$'e -=, t"e &%''%@!n pr%)!s!%n be !nserted3

@!t"%$t pre$d!#e t% t"e r!"t %& t"e de&endant t% pr%se#$te "!s #%$nter#'a!8 !n t"esa8e %r !n a separate a#t!%n. T"e C%88!ttee areed @!t" t"e pr%p%seda8end8ent %& J$st!#e Rea'ad%.

J$st!#e Herrera %bser)ed t"at $nder Se#s. - t% B %& R$'e -=, !t !s n%t t"e a#t!%n t"at !sd!s8!ssed b$t t"e #%8p'a!nt. He as6ed @"et"er t"ere !s any d!st!n#t!%n bet@een#%8p'a!nt and a#t!%n. J$st!#e Rea'ad% %p!ned t"at t"e a#t!%n %& t"e p'a!nt! !s!n!t!ated by "!s #%8p'a!nt.

J$st!#e Fer!a t"en s$ested t"at t"e d!s8!ssa' be '!8!ted t% t"e #%8p'a!nt. T"$s, !nt"e -st '!ne %& Se#. -, t"e @%rds An a#t!%n @!'' be #"aned t% a #%8p'a!nt/ !n t"end '!ne %& Se#. , t"e @%rds an a#t!%n @!'' be #"aned t% a #%8p'a!nt and !n Se#.B, t"e @%rd a#t!%n %n t"e 5t" '!ne %& t"e dra&t @!'' be #"aned t% #%8p'a!nt. T"eC%88!ttee areed @!t" J$st!#e Fer!aPs s$ested a8end8ents.

CA (aX% be'!e)ed t"at t"ere !s a need t% #'ar!&y t"e #%$nter#'a!8 t"at t"e de&endant@!'' pr%se#$te, @"et"er !t !s per8!ss!)e %r #%8p$'s%ry %r a'' 6!nds %& #%$nter#'a!8s.

J$st!#e Rea'ad% %p!ned t"at t"ere !s n% need %& 8a6!n a #'ar!#at!%n be#a$se !t !sa'ready $nderst%%d t"at !t #%)ers b%t" #%$nter#'a!8s.5

It !s apparent &r%8 t"ese 8!n$tes t"at t"e s$r)!)a' %& t"e #%$nter#'a!8 desp!te t"ed!s8!ssa' %& t"e #%8p'a!nt $nder Se#t!%n B st%%d !rrespe#t!)e %& @"et"er t"e#%$nter#'a!8 @as per8!ss!)e %r #%8p$'s%ry. M%re%)er, @"en t"e C%$rt !tse'&appr%)ed t"e re)!s!%ns n%@ #%nta!ned !n t"e -99= R$'es %& C!)!' (r%#ed$re, n%t %n'yd!d J$st!#e Rea'ad%Ps a8end8ent t% Se#t!%n B, R$'e -= re8a!n !nta#t, b$t t"e na')ers!%n '!6e@!se e'!8!nated t"e K$a'!#at!%n &%r8er'y %ered $nder Se#t!%n %n#%$nter#'a!8s t"at #an re8a!n pend!n &%r !ndependent ad$d!#at!%n by t"e#%$rt.5B At present, e)en Se#t!%n , #%n#ern!n d!s8!ssa's %n 8%t!%n %& t"e

p'a!nt!, n%@ re#%n!?es t"e r!"t %& t"e de&endant t% pr%se#$te t"e #%$nter#'a!8e!t"er !n t"e sa8e %r separate a#t!%n n%t@!t"stand!n t"e d!s8!ssa' %& t"e#%8p'a!nt, and @!t"%$t reard as t% t"e per8!ss!)e %r #%8p$'s%ry nat$re %& t"e#%$nter#'a!8.

In "!s #%88entar!es %n t"e -99= R$'es %& C!)!' (r%#ed$re, J$st!#e Rea'ad% ep%$nds%n t"e ee#ts %& t"e a8end8ents t% Se#t!%n and B %& R$'e -=3

. Under t"!s re)!sed se#t!%n , @"ere t"e p'a!nt! 8%)es &%r t"e d!s8!ssa' %& "!s

#%8p'a!nt t% @"!#" a #%$nter#'a!8 "as been !nterp%sed, t"e d!s8!ssa' s"a'' be'!8!ted t% t"e #%8p'a!nt. S$#" d!s8!ssa' s"a'' be @!t"%$t pre$d!#e t% t"e r!"t %& t"ede&endant t% e!t"er pr%se#$te "!s #%$nter#'a!8 !n a separate a#t!%n %r t% "a)e t"esa8e res%')ed !n t"e sa8e a#t!%n. S"%$'d "e %pt &%r t"e rst a'ternat!)e, t"e #%$rts"%$'d render t"e #%rresp%nd!n %rder rant!n and reser)!n "!s r!"t t% pr%se#$te"!s #'a!8 !n a separate #%8p'a!nt. S"%$'d "e #"%%se t% "a)e "!s #%$nter#'a!8d!sp%sed %& !n t"e sa8e a#t!%n @"ere!n t"e #%8p'a!nt "ad been d!s8!ssed, "e 8$st8an!&est s$#" pre&eren#e t% t"e tr!a' #%$rt @!t"!n -5 days &r%8 n%t!#e t% "!8 %&p'a!nt!Ps 8%t!%n t% d!s8!ss. T"ese a'ternat!)e re8ed!es %& t"e de&endant area)a!'ab'e t% "!8 reard'ess %& @"et"er "!s #%$nter#'a!8 !s #%8p$'s%ry %r per8!ss!)e.A s!8!'ar a'ternat!)e pr%#ed$re, @!t" t"e sa8e $nder'y!n reas%n t"ere&%r, !sad%pted !n Se#. 4, R$'e -4 and Se#. B %& t"!s R$'e, @"ere!n t"e #%8p'a!nt !sd!s8!ssed %n t"e 8%t!%n %& t"e de&endant %r, !n t"e 'atter !nstan#e, a's% by t"e #%$rt8%t$ pr%pr!%.

. T"e se#%nd s$bstant!a' a8end8ent t% Se#t!%n B !s @!t" respe#t t% t"ed!sp%s!t!%n %& t"e de&endantPs #%$nter#'a!8 !n t"e e)ent t"e p'a!nt!Ps #%8p'a!nt !sd!s8!ssed. As a'ready %bser)ed, "e !s "ere ranted t"e #"%!#e t% pr%se#$te t"at#%$nter#'a!8 !n e!t"er t"e sa8e %r a separate a#t!%n.

B. 1!t" t"e a&%restated a8end8ents !n Se#s. and B 'ay!n d%@n spe#!# r$'es %nt"e d!sp%s!t!%n %& #%$nter#'a!8s !n)%')ed !n t"e d!s8!ssa' a#t!%ns, t"e #%ntr%)ers!a'd%#tr!ne !n A F!nan#e C%rp%rat!%n )s. C%, et a'., :*.R. N%. -75=5-, J$ne B7, -99B;"as been aband%ned, t%et"er @!t" t"e apparent #%n&$s!%n %n t"e pr%perapp'!#at!%n %& sa!d Se#s. and B. Sa!d se#t!%ns @ere d!st!n$!s"ed and d!s#$ssed !nt"e a$t"%rPs separate %p!n!%n !n t"at #ase, e)en be&%re t"ey @ere #'ar!ed by t"epresent a8end8ents .5>

S!8!'ar'y, J$st!#e Fer!a n%tes t"at t"e present r$'e rear8s t"e r!"t %& t"ede&endant t% 8%)e &%r t"e d!s8!ssa' %& t"e #%8p'a!nt and t% pr%se#$te "!s#%$nter#'a!8, as stated !n t"e separate %p!n!%n %& J$st!#e Rea'ad% !n AF!nan#e.55 Ret!red C%$rt %& Appea's J$st!#e Herrera pr%n%$n#es t"at t"ea8end8ent t% Se#t!%n B, R$'e -= sett'es t"at na!n K$est!%n @"et"er t"ed!s8!ssa' %& t"e #%8p'a!nt #arr!es @!t" !t t"e d!s8!ssa' %& t"e #%$nter#'a!8, and%p!nes t"at by reas%n %& t"e a8end8ents, t"e r$'!ns !n Meta's En!neer!n,Internat!%na' C%nta!ner, and A F!nan#e 8ay be dee8ed aband%ned.54 On t"eee#t %& a8end8ent t% Se#t!%n B, R$'e -=, t"e #%88entat%rs are !n enera'aree8ent,5= a't"%$" t"ere !s 'ess $nan!8!ty %& )!e@s !ns%&ar as Se#t!%n , R$'e -=!s #%n#erned.5<

T% be #erta!n, @"en t"e C%$rt pr%8$'ated t"e -99= R$'es %& C!)!' (r%#ed$re,!n#'$d!n t"e a8ended R$'e -=, t"%se pre)!%$s $ra' d%#tr!nes t"at @ere !n#%ns!stent

-5



INTRODUCTION@!t" t"e ne@ r$'es !n#%rp%rated !n t"e -99= R$'es %& C!)!' (r%#ed$re @ere !8p'!#!t'yaband%ned !ns%&ar as !n#!dents ar!s!n a&ter t"e ee#t!)!ty %& t"e ne@ pr%#ed$ra'r$'es %n - J$'y -99=. A F!nan#e, %r e)en t"e d%#tr!ne t"at a #%$nter#'a!8 8ay bene#essar!'y d!s8!ssed a'%n @!t" t"e #%8p'a!nt, #'ear'y #%n!#ts @!t" t"e -99= R$'es%& C!)!' (r%#ed$re. T"e aband%n8ent %& A F!nan#e as d%#tr!ne etends as &ar ba#6as -99=, @"en t"e C%$rt ad%pted t"e ne@ R$'es %& C!)!' (r%#ed$re. I&, s!n#e t"en,s$#" aband%n8ent "as n%t been ar8ed !n $r!spr$den#e, !t !s %n'y be#a$se n%pr%per #ase "as ar!sen t"at @%$'d @arrant epress #%nr8at!%n %& t"e ne@ r$'e.

T"at %pp%rt$n!ty !s "ere and n%@, and @e t"$s r$'e t"at t"e d!s8!ssa' %& a #%8p'a!nt

d$e t% &a$'t %& t"e p'a!nt! !s @!t"%$t pre$d!#e t% t"e r!"t %& t"e de&endant t%pr%se#$te any pend!n #%$nter#'a!8s %& @"ate)er nat$re !n t"e sa8e %r separatea#t!%n. 1e #%nr8 t"at A F!nan#e and a'' pre)!%$s r$'!ns %& t"e C%$rt t"at are!n#%ns!stent @!t" t"!s present "%'d!n are n%@ aband%ned.

A##%rd!n'y, t"e RTC #'ear'y erred @"en !t %rdered t"e d!s8!ssa' %& t"e #%$nter#'a!8,s!n#e Se#t!%n B, R$'e -= 8andates t"at t"e d!s8!ssa' %& t"e #%8p'a!nt !s @!t"%$tpre$d!#e t% t"e r!"t %& t"e de&endant t% pr%se#$te t"e #%$nter#'a!8 !n t"e sa8e %rseparate a#t!%n. I& t"e RTC @ere t% d!s8!ss t"e #%$nter#'a!8, !t s"%$'d be %n t"e8er!ts %& s$#" #%$nter#'a!8. Re)ersa' %& t"e RTC !s !n %rder, and a re8and !sne#essary &%r tr!a' %n t"e 8er!ts %& t"e #%$nter#'a!8.

It @%$'d be per&e#t'y sat!s&a#t%ry &%r t"e C%$rt t% 'ea)e t"!s 8atter at t"at. St!'', anep'anat!%n %& t"e reas%n be"!nd t"e ne@ r$'e !s #a''ed &%r, #%ns!der!n t"at t"erat!%na'e be"!nd t"e pre)!%$s r$'e @as &reK$ent'y e'ab%rated $p%n.

Under A#t N%. -97, %r t"e C%de %& (r%#ed$re !n C!)!' A#t!%ns pr%8$'ated !n -97-, !t@as re#%n!?ed !n Se#t!%n -=:-; t"at t"e p'a!nt! "ad t"e r!"t t% see6 t"ed!s8!ssa' %& t"e #%8p'a!nt at any t!8e be&%re tr!a', pr%)!ded a #%$nter#'a!8 "as n%tbeen 8ade, %r ar8at!)e re'!e& s%$"t by t"e #r%ss+#%8p'a!nt %r ans@er %& t"ede&endant.59 N%te t"at n% K$a'!#at!%n @as 8ade t"en as t% t"e nat$re %& t"e#%$nter#'a!8, @"et"er !t be #%8p$'s%ry %r per8!ss!)e. T"e pr%te#t!%n %& t"ede&endantPs r!"t t% pr%se#$te t"e #%$nter#'a!8 @as !ndeed $nK$a'!ed. In C!ty %&Man!'a, de#!ded !n -9-<, t"e C%$rt ep'a!ned3

y pararap" - %& Se#t!%n -=, !t @!'' be seen t"at, @"ere t"e de&endant "as!nterp%sed a #%$nter#'a!8, %r !s see6!n ar8at!)e re'!e& by a #r%ss+#%8p'a!nt, t"att"en, and !n t"at #ase, t"e p'a!nt! #ann%t d!s8!ss t"e a#t!%n s% as t% ae#t t"e r!"t%& t"e de&endant !n "!s #%$nter#'a!8 %r prayer &%r ar8at!)e re'!e&. T"e reas%n &%rt"at e#ept!%n !s #'ear. 1"en t"e ans@er sets $p an !ndependent a#t!%n aa!nst t"e

p'a!nt!, !t t"en be#%8es an a#t!%n by t"e de&endant aa!nst t"e p'a!nt!, and, %&#%$rse, t"e p'a!nt! "as n% r!"t t% as6 &%r a d!s8!ssa' %& t"e de&endantPs a#t!%n.47

N%net"e'ess, a ne@ r$'e @as !ntr%d$#ed @"en A#t N%. -97 @as rep'a#ed by t"e -9>7R$'es %& C%$rt. Se#t!%n , R$'e B7 %& t"e -9>7 R$'es spe#!ed t"at !& a #%$nter#'a!8!s p'eaded by a de&endant pr!%r t% t"e ser)!#e %& t"e p'a!nt!Ps 8%t!%n t% d!s8!ss, t"ea#t!%n s"a'' n%t be d!s8!ssed aa!nst t"e de&endantPs %be#t!%n $n'ess t"e#%$nter#'a!8 #an re8a!n pend!n &%r !ndependent ad$d!#at!%n by t"e #%$rt. T"!sK$a'!#at!%n re8a!ned !nta#t @"en t"e -94> R$'es %& C%$rt @as !ntr%d$#ed.4- T"er$'e re&erred %n'y t% #%8p$'s%ry #%$nter#'a!8s, %r #%$nter#'a!8s @"!#" ar!se %$t %&%r are ne#essar!'y #%nne#ted @!t" t"e transa#t!%n %r %##$rren#e t"at !s t"e s$be#t8atter %& t"e p'a!nt!Ps #'a!8, s!n#e t"e r!"ts %& t"e part!es ar!s!n %$t %& t"e sa8etransa#t!%n s"%$'d be sett'ed at t"e sa8e t!8e.4 As @as e)!dent !n Meta's,Internat!%na' C%nta!ner and A F!nan#e, t"e r$'e @as e)ent$a''y etended t%

!nstan#es @"ere!n !t @as t"e de&endant @!t" t"e pend!n #%$nter#'a!8, and n%t t"ep'a!nt!, t"at 8%)ed &%r t"e d!s8!ssa' %& t"e #%8p'a!nt.

1e s"%$'d n%t !n%re t"e t"e%ret!#a' bases %& t"e r$'e d!st!n$!s"!n #%8p$'s%ry#%$nter#'a!8s &r%8 per8!ss!)e #%$nter#'a!8s !ns%&ar as t"e d!s8!ssa' %& t"e a#t!%n !s#%n#erned. T"ere !s a part!#$'ar s#"%%' %& t"%$"t t"at !n&%r8s t"e br%ad pr%p%s!t!%n!n Da'8an t"at !& t"e #!)!' #ase !s d!s8!ssed, s% a's% !s t"e #%$nter#'a!8 'edt"ere!n,4B %r t"e 8%re n$an#ed d!s#$ss!%ns %ered !n Meta's, Internat!%na'C%nta!ner, and A F!nan#e. T"e 8%st p%tent state8ent %& t"e t"e%ry 8ay be &%$nd

!n Meta's,4> @"!#" pr%#eeds &r%8 t"e &%''%@!n &$nda8enta' pre8!sesVa#%8p$'s%ry #%$nter#'a!8 8$st be set $p !n t"e sa8e pr%#eed!n %r @%$'d %t"er@!sebe abated %r barred !n a separate %r s$bseK$ent '!t!at!%n %n t"e r%$nd %& a$tera#t!%n pendant, '!t!s pendent!a %r res $d!#ata/ a #%8p$'s%ry #%$nter#'a!8 !s a$!'!aryt% t"e 8a!n s$!t and der!)es !ts $r!sd!#t!%na' s$pp%rt t"ere&r%8 as !t ar!ses %$t %& %r!s ne#essar!'y #%nne#ted @!t" t"e transa#t!%n %r %##$rren#e t"at !s t"e s$be#t8atter %& t"e #%8p'a!nt/45 and t"at !& t"e #%$rt d!s8!sses t"e #%8p'a!nt %n t"er%$nd %& 'a#6 %& $r!sd!#t!%n, t"e #%8p$'s%ry #%$nter#'a!8 8$st a's% be d!s8!ssedas !t !s 8ere'y an#!''!ary t% t"e 8a!n a#t!%n and n% $r!sd!#t!%n re8a!ned &%r anyrant %& re'!e& $nder t"e #%$nter#'a!8.

T"e rst p%!nt !s der!)ed &r%8 Se#t!%n >, R$'e 9, %& t"e -94> R$'es %& C%$rt, @"!'e t"et@% 'atter p%!nts are s%$r#ed &r%8 A8er!#an $r!spr$den#e. T"ere !s n% d!sp$t!n t"et"e%ret!#a' )!ab!'!ty %& t"ese t"ree p%!nts. In &a#t, t"e reK$!re8ent t"at t"e#%8p$'s%ry #%$nter#'a!8 8$st be set $p !n t"e sa8e pr%#eed!n re8a!ns etant

$nder t"e -99= R$'es %& C!)!' (r%#ed$re.44 At t"e sa8e t!8e, %t"er #%ns!derat!%nsr%%ted !n a#t$a' pra#t!#e pr%)!de a #%$nterba'an#e t% t"e ab%)e+#!ted rat!%na'es.

1"ate)er t"e nat$re %& t"e #%$nter#'a!8, !t bears t"e sa8e !ntera' #"ara#ter!st!#sas a #%8p'a!nt/ na8e'y a #a$se :%r #a$ses; %& a#t!%n #%nst!t$t!n an a#t %r %8!ss!%nby @"!#" a party )!%'ates t"e r!"t %& an%t"er. T"e 8a!n d!eren#e '!es !n t"at t"e#a$se %& a#t!%n !n t"e #%$nter#'a!8 !s 8a!nta!ned by t"e de&endant aa!nst t"ep'a!nt!, @"!'e t"e #%n)erse "%'ds tr$e @!t" t"e #%8p'a!nt. Yet, as @!t" a #%8p'a!nt, a#%$nter#'a!8 @!t"%$t a #a$se %& a#t!%n #ann%t s$r)!)e.

It @%$'d t"en see8!n'y &%''%@ t"at !& t"e d!s8!ssa' %& t"e #%8p'a!nt s%8e"%@e'!8!nates t"e #a$se:s; %& t"e #%$nter#'a!8, t"en t"e #%$nter#'a!8 #ann%t s$r)!)e.

Yet t"at "ard'y !s t"e #ase, espe#!a''y as a enera' r$'e. M%re %&ten t"an n%t, t"ea''eat!%ns t"at &%r8 t"e #%$nter#'a!8 are r%%ted !n an a#t %r %8!ss!%n %& t"ep'a!nt! %t"er t"an t"e p'a!nt!Ps )ery a#t %& '!n t"e #%8p'a!nt. M%re%)er, s$#" a#ts

%r %8!ss!%ns !8p$ted t% t"e p'a!nt! are %&ten #'a!8ed t% "a)e %##$rred pr!%r t% t"e'!n %& t"e #%8p'a!nt !tse'&. T"e %n'y apparent e#ept!%n t% t"!s #!r#$8stan#e !s !& !t!s a''eed !n t"e #%$nter#'a!8 t"at t"e )ery a#t %& t"e p'a!nt! !n '!n t"e #%8p'a!ntpre#!se'y #a$ses t"e )!%'at!%n %& t"e de&endantPs r!"ts. Yet e)en !n s$#" an !nstan#e,!t re8a!ns debatab'e @"et"er t"e d!s8!ssa' %r @!t"dra@a' %& t"e #%8p'a!nt !ss$#!ent t% %b)!ate t"e pend!n #a$se %& a#t!%n 8a!nta!ned by t"e de&endantaa!nst t"e p'a!nt!.4=

T"ese #%ns!derat!%ns pers!st @"et"er t"e #%$nter#'a!8 !n K$est!%n !s per8!ss!)e %r#%8p$'s%ry. A #%8p$'s%ry #%$nter#'a!8 ar!ses %$t %& %r !s #%nne#ted @!t" t"etransa#t!%n %r %##$rren#e #%nst!t$t!n t"e s$be#t 8atter %& t"e %pp%s!n partyPs#'a!8, d%es n%t reK$!re &%r !ts ad$d!#at!%n t"e presen#e %& t"!rd part!es, and stands@!t"!n t"e $r!sd!#t!%n %& t"e #%$rt b%t" as t% t"e a8%$nt !n)%')ed and t"e nat$re %&t"e #'a!8.4< T"e &a#t t"at t"e #$'pab'e a#ts %n @"!#" t"e #%$nter#'a!8 !s based are

-4



INTRODUCTION&%$nded @!t"!n t"e sa8e transa#t!%n %r %##$rren#e as t"e #%8p'a!nt, !s !ns$#!ent#a$sat!%n t% neate t"e #%$nter#'a!8 t%et"er @!t" t"e #%8p'a!nt. T"e d!s8!ssa' %r@!t"dra@a' %& t"e #%8p'a!nt d%es n%t tra)erse t"e b%$ndar!es %& t!8e t% $nd% t"ea#t %r %8!ss!%n %& t"e p'a!nt! aa!nst t"e de&endant, %r )!#e )ersa. 1"!'e s$#"d!s8!ssa' %r @!t"dra@a' pre#'$des t"e p$rs$!t %& '!t!at!%n

by t"e p'a!nt!, e!t"er t"r%$" "!sG"er %@n !n!t!at!)e %r &a$'t, !t @%$'d be !n!K$!t%$s t%s!8!'ar'y en#$8ber t"e de&endant @"% 8a!nta!ned n% s$#" !n!t!at!)e %r &a$'t. I& t"ede&endant s!8!'ar'y 8%)es &%r t"e d!s8!ssa' %& t"e #%$nter#'a!8 %r ne'e#ts t% t!8e'y

p$rs$e s$#" a#t!%n, 'et t"e d!s8!ssa' %& t"e #%$nter#'a!8 be pre8!sed %n t"%ser%$nds !8p$tab'e t% t"e de&endant, and n%t %n t"e a#t$at!%ns %& t"e p'a!nt!.

T"e %t"er #%ns!derat!%ns s$pp'!ed !n Meta's are an#"%red %n t"e pre8!se t"at t"e $r!sd!#t!%na' &%$ndat!%n %& t"e #%$nter#'a!8 !s t"e #%8p'a!nt !tse'&. T"e t"e%ry !s#%rre#t, b$t t"ere are %t"er &a#ets t% t"!s s$be#t t"at s"%$'d be ta6en !nt% a##%$ntas @e''. On t"e estab'!s"ed pre8!se t"at a #%$nter#'a!8 !n)%')es separate #a$ses %&a#t!%n t"an t"e #%8p'a!nt e)en !& der!)ed &r%8 t"e sa8e transa#t!%n %r ser!es %&transa#t!%ns, t"e #%$nter#'a!8 #%$'d "a)e )ery @e'' been '%ded as a #%8p'a!nt "adt"e de&endant 'ed t"e a#t!%n a"ead %& t"e #%8p'a!nant.49 T"e ter8s an#!''ary %ra$!'!ary 8ay 8!s'ead !n s!n!&y!n t"at a #%8p'a!nt !nnate'y p%ssesses 8%re#reden#e t"an a #%$nter#'a!8, yet t"ere are 8any !nstan#es @"ere!n t"e #%8p'a!nt!s tr!)!a' b$t t"e #%$nter#'a!8 !s 8er!t%r!%$s. In tr$t", t"e n%t!%n t"at a #%$nter#'a!8!s, %r better st!'', appears t% be 8ere'y an#!''ary %r a$!'!ary !s #"!ey t"e %s"%%t%& an a##!dent %& #"r%n%'%y, 8%re t"an anyt"!n e'se.

T"e &%r8a'!st!# d!st!n#t!%n bet@een a #%8p'a!nt and a #%$nter#'a!8 d%es n%t detra#t&r%8 t"e &a#t t"at b%t" %& t"e8 e8b%dy #a$ses %& a#t!%n t"at "a)e !n t"e!r end t"e)!nd!#at!%n %& r!"ts. 1"!'e t"e d!st!n#t!%n !s ne#essary as a 8eans t% &a#!'!tate %rderand #'ar!ty !n t"e r$'es %& pr%#ed$re, !t s"%$'d be re8e8bered t"at t"e pr!8%rd!a'p$rp%se %& pr%#ed$ra' r$'es !s t% pr%)!de t"e 8eans &%r t"e )!nd!#at!%n %& r!"ts. Aparty @!t" a )a'!d #a$se %& a#t!%n aa!nst an%t"er party #ann%t be den!ed t"e r!"tt% re'!e& s!8p'y be#a$se t"e %pp%s!n s!de "ad t"e %%d &%rt$ne %& '!n t"e #aserst. Yet t"!s !n ee#t @as @"at "ad "appened $nder t"e pre)!%$s pr%#ed$ra' r$'eand #%rresp%ndent d%#tr!ne, @"!#" $nder t"e!r na' per8$tat!%n, pres#r!bed t"ea$t%8at!# d!s8!ssa' %& t"e #%8p$'s%ry #%$nter#'a!8 $p%n t"e d!s8!ssa' %& t"e#%8p'a!nt, @"et"er $p%n t"e !n!t!at!)e %& t"e p'a!nt! %r %& t"e de&endant.

T"$s, t"e present r$'e e8b%d!ed !n Se#t!%ns and B %& R$'e -= %rda!ns a 8%reeK$!tab'e d!sp%s!t!%n %& t"e #%$nter#'a!8s by ens$r!n t"at any $d8ent t"ere%n !s

based %n t"e 8er!t %& t"e #%$nter#'a!8 !tse'& and n%t %n t"e s$r)!)a' %& t"e 8a!n#%8p'a!nt. Certa!n'y, !& t"e #%$nter#'a!8 !s pa'pab'y @!t"%$t 8er!t %r s$ers $r!sd!#t!%na' a@s @"!#" stand !ndependent %& t"e #%8p'a!nt, t"e tr!a' #%$rt !s n%tpre#'$ded &r%8 d!s8!ss!n !t $nder t"e a8ended r$'es, pr%)!ded t"at t"e $d8ent%r %rder d!s8!ss!n t"e #%$nter#'a!8 !s pre8!sed %n t"%se de&e#ts. At t"e sa8e t!8e,!& t"e #%$nter#'a!8 !s $st!ed, t"e a8ended r$'es n%@ $neK$!)%#a''y pr%te#t s$#"#%$nter#'a!8 &r%8 pere8pt%ry d!s8!ssa' by reas%n %& t"e d!s8!ssa' %& t"e #%8p'a!nt.

1HEREFORE, t"e pet!t!%n !s *RANTED. T"e Orders dated 9 A$$st 775 and -7O#t%ber 775 %& ran#" 9, Re!%na' Tr!a' C%$rt %& San M!$e', Za8b%ana de' S$r!n C!)!' Case N%. 9<+7- are SET ASIDE. (et!t!%nerPs #%$nter#'a!8 as de&endant !nC!)!' Case. N%. 9<+7- !s REINSTATED. T"e Re!%na' Tr!a' C%$rt !s ORDERED t% "earand de#!de t"e #%$nter#'a!8 @!t" de'!berate d!spat#".

SO ORDERED.

*.R. N%. -57B5 A$$st B-, 774

ED*ARDO 0. QUESADA, (et!t!%ner,)s.

THE DE(ARTMENT OF JUSTICE and CLEMENTE TERUEL, Resp%ndents.

D E C I S I O N

SANDO0AL+*UTIERREZ, J.3

F%r %$r res%'$t!%n !s t"e (et!t!%n &%r Cert!%rar! - :@!t" prayer &%r a te8p%raryrestra!n!n %rder andG%r pre'!8!nary !n$n#t!%n; assa!'!n t"e Res%'$t!%ns dated

Jan$ary -=, 77- and Septe8ber -=, 77- !ss$ed by t"e Se#retary %& J$st!#e !n I.S.N%. 77+9=<7+C, ent!t'ed C'e8ente M. Ter$e', #%8p'a!nant, )ers$s Ra8%n (.Ca8a#"%, Jr., Edard% 0. Q$esada and R%d%'&% C%rad%, resp%ndents.

On Mar#" -, 777, C'e8ente M. Ter$e', "ere!n resp%ndent, 'ed @!t" t"e O#e %& t"eC!ty (r%se#$t%r, Manda'$y%n C!ty, an ada)!t+#%8p'a!nt #"ar!n Edard% 0.Q$esada :"ere!n pet!t!%ner;, Ra8%n (. Ca8a#"%, Jr., and R%d%'&% C%rad% @!t" t"e#r!8e %& esta&a $nder Art!#'e B-5, pararap"s and B %& t"e Re)!sed (ena' C%de,d%#6eted as I.S. N%. 77+9=<7+C. T"e ada)!t+#%8p'a!nt a''ees t"at %n J$ne -B,-99< at S"anr!'a ('a?a H%te', EDSA, Manda'$y%n C!ty, Q$esada, Ca8a#"%, and

C%rad% represented t"e8se')es t% Ter$e' as t"e pres!dent, )!#e+pres!dentGtreas$rer,and 8ana!n d!re#t%r, respe#t!)e'y, %& 0SH *r%$p C%rp%rat!%n/ t"at t"ey %ered t%"!8 a te'e#%88$n!#at!%n de)!#e #a''ed Star C%ns$'tant EK$!p8ent (a#6ae @"!#"pr%)!des t"e $ser easy a##ess t% t"e !nternet )!a te'e)!s!%n/ t"at t"ey ass$red "!8t"at a&ter "e pays t"e p$r#"ase pr!#e %& (45,777.77, t"ey @!'' !88ed!ate'y de'!)er t%"!8 t@% $n!ts %& t"e !nternet a##ess de)!#e/ t"at re'y!n %n t"e!r representat!%ns, "epa!d t"e8 (45,777.77 &%r t"e t@% $n!ts/ and t"at desp!te de8ands, t"ey, d!d n%tde'!)er t% "!8 t"e $n!ts.

It @as %n'y pet!t!%ner Q$esada @"% 'ed a #%$nter+ada)!t. B He a''eed t"at "e,Ca8a#"%, and C%rad% are Star C%ns$'tant Tra!ners %& F.O.M. ("!'!pp!nes, In#., a#%rp%rat!%n enaed !n t"e b$s!ness %& se''!n and 8ar6et!n te'e#%88$n!#at!%npr%d$#ts and te#"n%'%!es/ t"at t"ey &%r8ed t"e 0SH *r%$p as a #%rp%rat!%n &%r t"epr!n#!pa' p$rp%se %& p%%'!n t"e #%88!ss!%ns t"ey @!'' re#e!)e as Star C%ns$'tant

Tra!ners and t"en d!)!d!n sa!d #%88!ss!%ns a8%n t"e8se')es a##%rd!n t% t"e!r

aree8ent/ t"at @"!'e "e ad8!tted t"at t"e t@% $n!ts %& !nternet a##ess de)!#esp$r#"ased by "ere!n resp%ndent Ter$e' @ere n%t de'!)ered t% "!8, "%@e)er, t"!s @asn%t d$e t% t"e!r a''eed &ra$d$'ent representat!%ns s!n#e t"ey 8ere'y a#ted as sa'esaents %& F.O.M. ("!'s., In#./ and t"at t"ey &%$nd %$t t%% 'ate t"at t"e sa!d #%8pany#%$'d n%t #%pe @!t" !ts #%88!t8ent t% t"e8 as !t ran s"%rt %& s$pp'!es %&te'e#%88$n!#at!%n pr%d$#ts.

On Apr!' 5, 777, Ass!stant C!ty (r%se#$t%r Esteban A. Ta#'a, Jr. !ss$ed a Res%'$t!%n> nd!n pr%bab'e #a$se aa!nst pet!t!%ner Q$esada, Ca8a#"%, and C%rad%, andre#%88end!n t"e '!n %& t"e #%rresp%nd!n In&%r8at!%n.

C%nseK$ent'y, an In&%r8at!%n &%r esta&a aa!nst pet!t!%ner Q$esada, Ca8a#"%, andC%rad% @as 'ed @!t" t"e Re!%na' Tr!a' C%$rt :RTC;, Manda'$y%n C!ty, d%#6eted asCr!8!na' Case N%. MC+77+5-7. T"!s #ase @as 'ater raed % t% ran#" 7<.

-=



INTRODUCTION

In t"e 8eant!8e, pet!t!%ner 'ed @!t" t"e Depart8ent %& J$st!#e a (et!t!%n &%r Re)!e@#"a''en!n t"e Apr!' 5, 777 Res%'$t!%n %& t"e In)est!at!n (r%se#$t%r. On Jan$ary-=, 77-, t"e Se#retary %& J$st!#e !ss$ed a Res%'$t!%n 5 d!s8!ss!n t"e pet!t!%n.(et!t!%nerPs 8%t!%n &%r re#%ns!derat!%n @as den!ed !n a Res%'$t!%n 4 datedSepte8ber -=, 77-.

1"!'e t"e RTC @as "ear!n Cr!8!na' Case N%. MC+77+5-7, pet!t!%ner 'ed @!t" t"!sC%$rt t"e !nstant (et!t!%n &%r Cert!%rar! a''e!n t"at t"e Se#retary %& J$st!#e, !n

d!s8!ss!n "!s (et!t!%n &%r Re)!e@ !n I.S. N%. 77+9=<7+C, a#ted @!t" ra)e ab$se %&d!s#ret!%n a8%$nt!n t% 'a#6 %r e#ess %& $r!sd!#t!%n. (et!t!%ner #%ntends t"at t"ee'e8ent %& &ra$d %r de#e!t !n t"e #r!8e %& esta&a !s n%t present = and t"at t"ere !s n%e)!den#e @"!#" @!'' pr%)e t"at t"e a##$sedPs pr%8!se t% de'!)er t"e p$r#"ased !te8s@as &a'se %r 8ade !n bad &a!t". <

T"e S%'!#!t%r *enera', !n "!s C%88ent, 8a!nta!ns t"at t"e Se#retary %& J$st!#e, !nnd!n a pr%bab'e #a$se aa!nst t"e t"ree a##$sed, d!d n%t a#t @!t" ra)e ab$se %&d!s#ret!%n and prayed &%r t"e d!s8!ssa' %& t"e !nstant pet!t!%n &%r be!n$n8er!t%r!%$s.

In!t!a''y, @e %bser)e t"at t"e present pet!t!%n @as d!re#t'y 'ed @!t" t"!s C%$rt, !n$tter )!%'at!%n %& t"e r$'e %n "!erar#"y %& #%$rts.

A pet!t!%n &%r #ert!%rar! $nder R$'e 45 %& t"e -99= R$'es %& C!)!' (r%#ed$re, asa8ended, 8$st be 'ed @!t" t"e C%$rt %& Appea's @"%se de#!s!%n 8ay t"en beappea'ed t% t"!s C%$rt by @ay %& a pet!t!%n &%r re)!e@ %n #ert!%rar! $nder R$'e >5 %&t"e sa8e R$'es. 9 A d!re#t re#%$rse t% t"!s C%$rt !s @arranted %n'y @"ere t"ere arespe#!a' and #%8pe''!n reas%ns spe#!#a''y a''eed !n t"e pet!t!%n t% $st!&y s$#"a#t!%n. S$#" 'adder %& appea's !s !n a##%rdan#e @!t" t"e r$'e %n "!erar#"y %& #%$rts.In 0erara, Sr. ). S$e't%, -7 @e stressed t"at t"!s s"%$'d be t"e #%nstant p%'!#y t"at8$st be %bser)ed str!#t'y by t"e #%$rts and 'a@yers, t"$s3

. T"e S$pre8e C%$rt !s a #%$rt %& 'ast res%rt, and 8$st s% re8a!n !& !t !s t%sat!s&a#t%r!'y per&%r8 t"e &$n#t!%ns ass!ned t% !t by t"e &$nda8enta' #"arter and!88e8%r!a' trad!t!%n. It #ann%t and s"%$'d n%t be b$rdened @!t" t"e tas6 %& dea'!n@!t" #a$ses !n t"e rst !nstan#e. Its %r!!na' $r!sd!#t!%n t% !ss$e t"e s%+#a''edetra%rd!nary @r!ts s"%$'d be eer#!sed %n'y @"ere abs%'$te'y ne#essary %r @"ereser!%$s and !8p%rtant reas%ns e!st t"ere&%r. Hen#e, t"at $r!sd!#t!%n s"%$'d

enera''y be eer#!sed re'at!)e t% a#t!%ns %r pr%#eed!ns be&%re t"e C%$rt %&Appea's, %r be&%re #%nst!t$t!%na' %r %t"er tr!b$na's, b%d!es %r aen#!es @"%se a#ts&%r s%8e reas%n %r an%t"er are n%t #%ntr%''ab'e by t"e C%$rt %& Appea's. 1"ere t"e!ss$an#e %& an etra%rd!nary @r!t !s a's% @!t"!n t"e #%8peten#e %& t"e C%$rt %&Appea's %r a Re!%na' Tr!a' C%$rt, !t !s !n e!t"er %& t"ese #%$rts t"at t"e spe#!#a#t!%n &%r t"e @r!tPs pr%#$re8ent 8$st be presented. T"!s !s and s"%$'d #%nt!n$e t%be t"e p%'!#y !n t"!s reard, a p%'!#y t"at #%$rts and 'a@yers 8$st str!#t'y %bser)e.:Unders#%r!n s$pp'!ed;

1e 'ater rear8ed s$#" p%'!#y !n (e%p'e ). C$ares8a -- a&ter n%t!n t"at t"ere !s ar%@!n tenden#y %n t"e part %& '!t!ants and 'a@yers t% "a)e t"e!r app'!#at!%ns &%rt"e s%+#a''ed etra%rd!nary @r!ts, and s%8et!8es e)en t"e!r appea's, passed $p%nand ad$d!#ated d!re#t'y and !88ed!ate'y by t"e "!"est tr!b$na' %& t"e 'and. 1eaa!n e8p"as!?ed t"at3

. T"!s C%$rtPs %r!!na' $r!sd!#t!%n t% !ss$e @r!ts %& #ert!%rar! :as @e'' aspr%"!b!t!%n, 8anda8$s, K$% @arrant%, "abeas #%rp$s and !n$n#t!%n; !s n%te#'$s!)e. . It !s a's% s"ared by t"!s C%$rt, and by t"e Re!%na' Tr!a' C%$rt, @!t"t"e C%$rt %& Appea's . T"!s #%n#$rren#e %& $r!sd!#t!%n !s n%t, "%@e)er, t% beta6en as a##%rd!n t% part!es see6!n any %& t"e @r!ts an abs%'$te, $nrestra!ned&reed%8 %& #"%!#e %& t"e #%$rt t% @"!#" app'!#at!%n t"ere&%r @!'' be d!re#ted. T"ere!s, a&ter a'', a "!erar#"y %& #%$rts. T"at "!erar#"y !s deter8!nat!)e %& t"e )en$e %&appea's, and s"%$'d a's% ser)e as a enera' deter8!nant %& t"e appr%pr!ate &%r$8

&%r pet!t!%ns &%r t"e etra%rd!nary @r!ts. A be#%8!n reard &%r t"at $d!#!a' "!erar#"y8%st #erta!n'y !nd!#ates t"at pet!t!%ns &%r t"e !ss$an#e %& etra%rd!nary @r!ts aa!nstrst 'e)e' #%$rts s"%$'d be 'ed @!t" t"e Re!%na' Tr!a' C%$rt, and t"%se aa!nst t"e'atter, @!t" t"e C%$rt %& Appea's. A d!re#t !n)%#at!%n %& t"e S$pre8e C%$rtPs %r!!na'

$r!sd!#t!%n t% !ss$e t"ese @r!ts s"%$'d be a''%@ed %n'y @"en t"ere are spe#!a' and!8p%rtant reas%ns t"ere&%r, #'ear'y and spe#!#a''y set %$t !n t"e pet!t!%n. T"!s !sestab'!s"ed p%'!#y. It !s a p%'!#y t"at !s ne#essary t% pre)ent !n%rd!nate de8ands$p%n t"e C%$rtPs t!8e and attent!%n @"!#" are better de)%ted t% t"%se 8atters@!t"!n !ts e#'$s!)e $r!sd!#t!%n, and t% pre)ent &$rt"er %)er+#r%@d!n %& t"e C%$rtPsd%#6et. . :Unders#%r!n s$pp'!ed;

Here, @e #ann%t d!s#ern any spe#!a' and #%8pe''!n reas%n t% $st!&y t"e d!re#t '!n@!t" t"!s C%$rt %& t"e present pet!t!%n. C'ear'y, !t s"%$'d be d!s8!ssed %$tr!"t.

E)en ass$8!n t"at t"e pet!t!%n #an be 'ed d!re#t'y @!t" t"!s C%$rt, t"e sa8e 8$st

&a!'. (et!t!%ner #%ntends t"at t"e e'e8ent %& &ra$d %r de#e!t as an e'e8ent %& t"e#r!8e %& esta&a !s absent. C%nseK$ent'y, t"e ar8an#e by t"e Se#retary %& J$st!#e %& t"e In)est!at!n (r%se#$t%rPs nd!n t"at t"ere e!sts a pr%bab'e #a$se !s ta!nted@!t" ra)e ab$se %& d!s#ret!%n.

T"e !ss$e %& @"et"er t"e e'e8ent %& &ra$d %r de#e!t !s present !s b%t" a K$est!%n %&&a#t and a 8atter %& de&ense, t"e deter8!nat!%n %& @"!#" !s better 'e&t t% t"e tr!a'#%$rt a&ter t"e part!es s"a'' "a)e add$#ed t"e!r respe#t!)e e)!den#e. It bearsstress!n t"at a pre'!8!nary !n)est!at!%n !s 8ere'y an !nK$!ry %r pr%#eed!n t%deter8!ne @"et"er t"ere !s s$#!ent r%$nd t% enender a @e''+&%$nded be'!e& t"ata #r!8e "as been #%88!tted and t"at t"e resp%ndent !s pr%bab'y $!'ty t"ere%&, ands"%$'d be "e'd &%r tr!a'. - It d%es n%t #a'' &%r t"e app'!#at!%n %& r$'es and standards%& pr%%& t"at a $d8ent %& #%n)!#t!%n reK$!res a&ter tr!a' %n t"e 8er!ts. -B As!8p'!ed by t"e @%rds pr%bab'y $!'ty, t"e !nK$!ry !s #%n#erned 8ere'y @!t"pr%bab!'!ty, n%t abs%'$te %r 8%ra' #erta!nty. -> At t"!s stae, t"e #%8p'a!nant need

n%t present pr%%& bey%nd reas%nab'e d%$bt. A pre'!8!nary !n)est!at!%n d%es n%treK$!re a &$'' and e"a$st!)e presentat!%n %& t"e part!esP e)!den#e. -5 A nd!n %&pr%bab'e #a$se needs %n'y t% rest %n e)!den#e s"%@!n t"at 8%re '!6e'y t"an n%t, a#r!8e "as been #%88!tted and @as #%88!tted by pet!t!%ner and "!s #%+a##$sed. Asr$'ed by t"e In)est!at!n (r%se#$t%r and ar8ed by t"e Se#retary %& J$st!#e,pet!t!%nerPs representat!%n and ass$ran#e t% resp%ndent Ter$e' t"at t"ete'e#%88$n!#at!%n eK$!p8ent @%$'d be de'!)ered t% "!8 $p%n pay8ent %& !tsp$r#"ase pr!#e @as t"e #%8pe''!n reas%n @"y "e parted @!t" "!s 8%ney. S$#"ass$ran#e, t"e In)est!at!n (r%se#$t%r added, !s a#t$a''y a 8!srepresentat!%n %rde#e!t.

T"$s, @e "%'d t"at t"e Se#retary %& J$st!#e d!d n%t ra)e'y ab$se "!s d!s#ret!%n. Ana#t %& a #%$rt %r tr!b$na' 8ay %n'y be #%ns!dered as #%88!tted !n ra)e ab$se %&d!s#ret!%n @"en t"e sa8e @as per&%r8ed !n a #apr!#!%$s %r @"!8s!#a' eer#!se %&

-<



INTRODUCTION $d8ent @"!#" !s eK$!)a'ent t% 'a#6 %& $r!sd!#t!%n. T"e ab$se %& d!s#ret!%n 8$st bepatent and r%ss as t% a8%$nt t% an e)as!%n %& p%s!t!)e d$ty %r t% a )!rt$a' re&$sa' t%per&%r8 a d$ty en%!ned by 'a@ %r t% a#t at a'' !n #%nte8p'at!%n %& 'a@, as @"ere t"ep%@er !s eer#!sed !n an arb!trary and desp%t!# 8anner by reas%n %& pass!%n %rpers%na' "%st!'!ty. -4

1HEREFORE, @e DISMISS t"e !nstant pet!t!%n. C%sts aa!nst pet!t!%ner.

SO ORDERED.

*.R. N%. 9=B<- N%)e8ber 5, -99

ENI*NO 0. MA*(ALE, JR., pet!t!%ner,)s.CI0IL SER0ICE COMMISSION and RO*ELIO A. DAYAN, !n "!s #apa#!ty as t"e *enera'Manaer %& t"e ("!'!pp!ne (%rts A$t"%r!ty, resp%ndents.

MELO, J.3

e&%re Us !s a pet!t!%n &%r re)!e@ %n #ert!%rar! assa!'!n Res%'$t!%n N%. 97+94 datedO#t%ber -9, -997 %& resp%ndent C!)!' Ser)!#e C%88!ss!%n :CSC;. Sa!d CSC res%'$t!%nset as!de and 8%d!ed t"e de#!s!%n dated Febr$ary 5, -997 %& t"e Mer!t Syste8(r%te#t!%n %ard !n MS( Case N%. >>9, @"!#" %rdered t"e !88ed!ate re!nstate8ent!n t"e ser)!#e %& "ere!n pet!t!%ner en!n% 0. Mapa'e, Jr., @!t"%$t '%ss %& sen!%r!tyr!"ts and @!t" pay8ent %& ba#6 sa'ar!es and %t"er e8%'$8ents t% @"!#" "e !sent!t'ed $nder t"e 'a@.

T"e re#%rd s"%@s t"at pet!t!%ner started "!s #areer !n %)ern8ent as an e8p'%yee !nt"e (res!dent!a' Ass!stan#e %n C%88$n!ty De)e'%p8ent !n -947. F!&teen years 'ater,%r !n -9=5, "e trans&erred t% t"e ("!'!pp!ne (%rts A$t"%r!ty :((A; as ArrastreS$per!ntendent. He @as pr%8%ted t% t"e p%s!t!%n %& (%rt Manaer !n -9== %& t"e (%rtManae8ent Un!t :(MU;, *enera' Sant%s C!ty. T"en "e @as reass!ned, !n t"e sa8eyear t% ((A+(MU, Ta#'%ban C!ty @"ere "e '!6e@!se d!s#"ared t"e &$n#t!%ns %& (%rtManaer. On De#e8ber -, -9<, t"e ((A *enera' Manaer des!nated Atty. 1!''!a8A. Enr!K$e? as %#er+!n+#"are %& ((A+(MU, Ta#'%ban C!ty ee#t!)e De#e8ber 4,-9<. On Jan$ary 4, -9<B, pet!t!%ner @as %rdered t% !88ed!ate'y rep%rt t% t"eAss!stant *enera' Manaer :A*M; &%r Operat!%n, ((A, Man!'a, (et!t!%ner rep%rted at((A Man!'a %n t"e sa8e date and per&%r8ed t"e d$t!es and &$n#t!%ns ass!ned t%"!8.

In an Interna' C%ntr%' Depart8ent Rep%rt dated Mar#" 5, -9<>, t"e (MU+Ta#'%banIn)ent%ry C%88!ttee and t"e C%88!ss!%n %n A$d!t :COA; stated t"at pet!t!%ner&a!'ed t% a##%$nt &%r eK$!p8ent %& ((A )a'$e at (45,5>.5 and t% '!K$!date #as"ad)an#es a8%$nt!n t% (-B7,749.4-. He @as &%$nd a's% t% "a)e !n#$rred$na$t"%r!?ed absen#es &r%8 May 5, -9<> t% J$'y B, -9<>.

On J$'y B, -9<>, %r n!neteen 8%nt"s a&ter "e bean rep%rt!n !n Man!'a, a &%r8a'#"are &%r D!s"%nesty, ($rs$!t %& (r!)ate $s!ness @!t"%$t per8!ss!%n as reK$!red byC!)!' Ser)!#e R$'es and Re$'at!%ns, FreK$ent and Una$t"%r!?ed Absen#es andNe'e#t %& D$ty @as 'ed aa!nst pet!t!%ner. ased %n sa!d #"ares "e @as %rderedpre)ent!)e'y s$spended and "as been %$t %& ser)!#e s!n#e t"en.

F%r a'8%st &%$r years t"e #ase re8a!ned $na#ted $p%n. T"e &%r8a' !n)est!at!%n and"ear!n res$8ed %n Septe8ber -<, -9<=.

On Jan$ary -<, -9<9 a De#!s!%n @as rendered by t"e Se#retary %& t"e Depart8ent %& Transp%rtat!%n and C%88$n!#at!%n :DOTC;, t"r%$" !ts Ad8!n!strat!)e A#t!%n %ard,nd!n pet!t!%ner $!'ty %& *r%ss Ne'!en#e %n t@% #%$nts3 :a; &%r "!s &a!'$re t%a##%$nt &%r t"e &%rty+&%$r :>>; ass%rted $n!ts %& eK$!p8ent, a8%n t"e8 a S%nyeta8a and a T0 Ca8era, and :b; &%r &a!'!n t% render t"e reK$!red '!K$!dat!%n %&

"!s #as" ad)an#es a8%$nt!n t% (>>,<==.77 &%r a per!%d %& &%$r years. (et!t!%ner @asa's% &%$nd $!'ty %& &reK$ent and $na$t"%r!?ed absen#es. A##%rd!n'y, "e @as 8etedt"e pena'ty %& d!s8!ssa' &r%8 t"e ser)!#e @!t" t"e #%rresp%nd!n a##ess%rypena't!es.

1"en pet!t!%ners 8%t!%n &%r re#%ns!derat!%n %& t"e a&%resa!d De#!s!%n @as den!ed !nt"e DOTCs Order %& Febr$ary 7, -9<9, "e appea'ed t% t"e Mer!t Syste8 and(r%te#t!%n %ard :MS(; %& resp%ndent C!)!' Ser)!#e C%88!ss!%n.

On Febr$ary 5, -997, t"e MS( rendered a De#!s!%n re)ers!n t"e De#!s!%n %& t"eDOTC. T"e pert!nent p%rt!%n %& t"e MS(s De#!s!%n reads3

A&ter a #are&$' re)!e@ %& t"e re#%rd %& t"e #ase, t"!s %ard &%$nd t"e appea'8er!t%r!%$s. Resp%ndent #ann%t be "e'd '!ab'e &%r *r%ss Ne'!en#e &%r "!s a''eed&a!'$re t% a##%$nt &%r se)era' pr%pert!es and &%r &a!'$re t% '!K$!date t"e #as"

ad)an#es "e re#e!)ed as t"ere @as n% s"%@!n t"at "e "as been spe#!#a''yreK$!red t% d% s% e!t"er by 'a@ %r re$'at!%n. T"e 8ere deta!' %& resp%ndent t% ((A+Man!'a, !n t"e absen#e %& an %rder reK$!r!n "!8 t% t$rn %)er and a##%$nt &%r t"e&$nds and pr%perty re#e!)ed &%r "!s %#e at (MU+Ta#'%ban @!'' n%t ne#essar!'y%b'!ate "!8 t% 8a6e a##%$nt!n &%r t"e sa8e.

M%re%)er, Se#t!%n -75, C"apter 5 %& (res!dent!a' De#ree ->>5, %t"er@!se 6n%@n asT"e *%)ern8ent A$d!t!n C%de %& t"e ("!'!pp!nes 8eas$red t"e '!ab!'!ty %& an%#er a##%$ntab'e &%r %)ern8ent pr%perty %n'y t% t"e 8%ney )a'$e %& sa!dpr%perty. T"%$" resp%ndent !s t"e pers%n pr!8ar!'y '!ab'e &%r t"ese &$nds andpr%perty, "e "%'ds t"!s '!ab!'!ty %!nt'y @!t" t"e pers%n @"% "as t"e a#t$a' p%ssess!%nt"ere%& and @"% "as t"e !88ed!ate resp%ns!b!'!ty &%r t"e sa&e6eep!n.

As t% t"e #"are re'at!)e t% resp%ndents &reK$ent $na$t"%r!?ed absen#es "ad beens$#!ent'y and #%n)!n#!n'y ep'a!ned, d$e t% @"!#" t"e %ard &%$nd "!8 n%t at a''

$!'ty %& t"e %ense #"ared :s!#;.

IN 0IE1 THEREOF, t"e de#!s!%n appea'ed &r%8 !s "ereby re)ersed. Resp%ndent+Appe''ant Mapa'e s"%$'d !88ed!ate'y by re!nstated !n t"e ser)!#e @!t"%$t '%ss %&sen!%r!ty r!"ts and @!t" pay8ent %& ba#6 sa'ar!es and %t"er e8%'$8ents t% @"!#""e !s ent!t'ed $nder t"e 'a@. :pp. B-+B, R%''%.;

On Mar#" -, -997, ((A, t"r%$" !ts *enera' Manaer, "ere!n resp%ndent R%e'!% ADayan, 'ed an appea' @!t" t"e C!)!' Ser)!#e F!e'd O#e+((A, and t"e 'atter %#e!nd%rsed t"e appea' t% resp%ndent CSC !n a 'etter dated Mar#" 5, -997.

On Mar#" 5, -997, pet!t!%ner reK$ested t"e Se#retary %& t"e DOTC t% d!re#t t"e ((At% !8p'e8ent t"e MS( de#!s!%n as !t "as be#%8e na' and ee#$t%ry. Sa!d reK$est@as re!terated !n an%t"er 'etter a's% dated Mar#" 5, -997 by pet!t!%ner t% OIC

-9



INTRODUCTION1!'&red% M. Tr!n!dad %& t"e O#e %& t"e Ass!stant Se#retary &%r Ad8!n!strat!%n andLea' Aa!rs, DOTC.

On Mar#" -B, -997, pet!t!%ner 'ed @!t" t"e MS( a M%t!%n &%r I8p'e8entat!%n %&t"e MS( de#!s!%n. T"!s @as %pp%sed by t"e ((A t"r%$" !ts *enera' Manaer.

On Apr!' =, -997 pet!t!%ner 'ed @!t" resp%ndent CSC "!s #%88ent t% t"e appea' %&t"e ((A #%ntend!n t"at "e !s n%t an a##%$ntab'e %#er and !s $nder n% %b'!at!%nt% a##%$nt &%r t"e pr%perty and eK$!p8ent/ t"at sa!d pr%perty and eK$!p8ent @eren%t re#e!)ed by "!8 as #$st%d!an and "e s"%$'d n%t be "e'd '!ab'e &%r t"e '%ss %& t"esa8e/ t"at t"e sa!d pr%perty and eK$!p8ent @ere p'a#e !n ((A+(MU Ta#'%ban C!ty@"!#" t"e "ere!n pet!t!%ner 'e&t %n O#t%ber <, -9< and s!n#e t"en "ad '%st #%ntr%'%)er t"e8. M%re%)er, pet!t!%ner a)erred t"at as t% t"e $n'!K$!dated #as" ad)an#es%& (>>,<==.77, t"e sa8e "ad '%n been '!K$!dated. F!na''y, pet!t!%ner #'a!8ed t"at"!s &a!'$re t% se#$re t"e #'earan#e &%r any p%ss!b'e pr%perty %r nan#!a' %b'!at!%n !n(MU+Ta#'%ban @as d$e t% t"e $ren#y %& "!s trans&er t% ((A+Man!'a and t"e absen#e%& any %rder %r de8and t% se#$re t"e #'earan#e.

On May 9, -997, t"e MS( !ss$ed an Order &%r t"e !88ed!ate !8p'e8entat!%n %& !tsFebr$ary 5, -997 De#!s!%n r$'!n t"at3

Re#%rds &$rt"er s"%@ t"at a #%py %& t"!s %ards de#!s!%n @as re#e!)ed by t"e O#e%& t"e H%n%rab'e Se#retary, t"at Depart8ent, t"r$ Mr. Fran6!e Ta8p$s %n Febr$ary4, -997. Re#%rds na''y s"%@ t"at as %& Mar#" 5, -997, n% 8%t!%n &%r re#%ns!derat!%n

%& t"!s %ards a&%re8ent!%ned de#!s!%n "as e)er been 'ed as e)!den#ed by t"e#ert!#at!%n %& e)en date !ss$ed and s!ned by D!re#t%r Ade'a!da C. M%nter% %& t"eO#e &%r Centra' (ers%nne' Re#%rds, t"!s C%88!ss!%n. Hen#e, sa!d de#!s!%n "as '%nbe#%8e na' and ee#$t%ry. :p. B>, R%''%.;

On J$ne <, -997, pet!t!%ner 'ed a M%t!%n t% D!s8!ss t"e appea' %& ((A #'a!8!nt"at3

-. Appea' %& ((A @as 'ed %$t %& t!8e and t"at t"e CSC "as n% $r!sd!#t!%n%)er !t/

. T"e ((A "as n%t e"a$sted ad8!n!strat!)e re8ed!es be&%re appea'!n t% t"e"!"er b%dy, t"e CSC/

B. T"e MS( de#!s!%n "as be#%8e na' and t"ere&%re #ann%t be d!st$rbed

any8%re.

:p. , R%''%.;

On O#t%ber -9, -997, resp%ndent CSC rendered !ts n%@ assa!'ed Res%'$t!%n N%. 97+94, t"e pert!nent p%rt!%n %& @"!#" reads as &%''%@s3

T"e C%88!ss!%n t"$s "%'ds resp%ndent Mapa'e $!'ty %& *r%ss Ne'e#t %& D$ty %nt@% :; #%$nts &%r t"e &%rty+&%$r :>>; eK$!p8ents :s!#; $nder "!s #"are and t%render an a##%$nt!n &%r #as" ad)an#es a8%$nt!n t% (>>,<==.97. A##%rd!n'y,#%ns!der!n t@% 8!t!at!n #!r#$8stan#es %& 'ent" %& ser)!#e and rst %ense !n&a)%r %& resp%ndent, t"e #%88!ss!%n "ereby !8p%ses a pena'ty %& s$spens!%n &%r aper!%d %& %ne :-; year aa!nst "!8. As "e "as been %$t %& t"e ser)!#e s!n#e -9<>, t"epena'ty !s dee8ed ser)ed and "e s"%$'d n%@ be re!nstated t% "!s &%r8er p%s!t!%n.

T"!s !s, "%@e)er, @!t"%$t pre$d!#e t% any #r!8!na' %r #!)!' pr%#eed!ns t"at t"eaen#y #%n#erned %r t"e COA 8ay !nst!t$te as pr%per $nder t"e pre8!ses.

F!na''y, t"e de#!s!%n %& t"e MS( e%nerat!n t"e resp%ndent Mapa'e &%r *r%ssNe'!en#e !s "ereby re)ersed. C%r%''ar!'y, t"e %rder %& pay8ent %& ba#6 sa'ar!es !s"ereby set as!de. MS( !s '!6e@!se re8!nded t% be 8%re #!r#$8spe#t %n 8atters %&t"!s nat$re, espe#!a''y as t"e !nstant #ase !n)%')es a##%$ntab!'!ty %& p$b'!# &$nds andpr%perty.

1HEREFORE, &%re%!n pre8!ses #%ns!dered, t"e C%88!ss!%n nds resp%ndenten!n% 0. Mapa'e, Jr., $!'ty %& *r%ss Ne'e#t %& D$ty %n t@% :; #%$nts &%r &a!'$ret% a##%$nt &%r t"e &%rty+&%$r :>>; eK$!p8ents :s!#; $nder "!s #"are and t% render ana##%$nt!n &%r #as" ad)an#e a8%$nt!n t% (>>,<==.97. In )!e@ %& t"e attendant8!t!at!n #!r#$8stan#es %& 'ent" %& ser)!#e and rst %ense !n &a)%r %&resp%ndents and t"e Ne'e#t %& D$ty t% a##%$nt &%r #as" ad)an#e !n t"e a8%$nt %&(>>,<==.97 :se#%nd #%$nt; be appre#!ated as an ara)at!n #!r#$8stan#es, t"epena'ty %& s$spens!%n &%r %ne :-; year s"a'' be !8p%sed aa!nst resp%ndent. T"!ss"a'' be @!t"%$t pre$d!#e t% any #r!8!na' %r #!)!' pr%#eed!n t"at ((A %r COA 8ay!nst!t$te aa!nst resp%ndent. A##%rd!n'y, t"e De#!s!%n and Order %& MS( datedFebr$ary 5, -997 and May 9, -997, respe#t!)e'y, are "ereby set as!de. :pp. =+<,R%''%.;

Hen#e, t"e present re#%$rse.

T"e pet!t!%n a''ees t"at resp%ndent CSC, !n !ss$!n !ts Res%'$t!%n N%. 97+94,ra)e'y ab$sed !ts d!s#ret!%n be#a$se3

-. T"e 'a@ d!d n%t a$t"%r!?e an appea' by t"e %)ern8ent &r%8 an ad)ersede#!s!%n %& t"e Mer!t Syste8s (r%te#t!%n %ard :MS(;/

. Resp%ndent ((A *enera' Manaer d!d n%t "a)e t"e r!"t %r 'ea' pers%na'!tyt% appea' &r%8 t"e MS( de#!s!%n/

B. Ass$8!n t"at t"e appea' @as a)a!'ab'e t% resp%ndent DAYAN, t"e sa8e@as 'ed %$t t!8e a&ter t"e MS( de#!s!%n "ad '%n be#%8e na' and ee#$t%ry. :pp.4+=, (et!t!%n/ pp. =+<, R%''%.;

In s$pp%rt %& t"!s rst #%ntent!%n, pet!t!%ner !n)%6es (ararap" :a;. Se#t!%n -4,C"apter B, S$bt!t'e A, T!t'e I, %%6 0 %& Ee#$t!)e Order N%. 9, %t"er@!se 6n%@n as

t"e Ad8!n!strat!)e C%de %& -9<= @"!#" pr%)!des3

Se#. -4. O#es !n t"e C%88!ss!%n. V T"e C%88!ss!%n s"a'' "a)e t"e &%''%@!n%#es3

:; T"e Mer!t Syste8s (r%te#t!%n %ard #%8p%sed %& a C"a!r8an and t@% :;8e8bers s"a'' "a)e t"e &%''%@!n &$n#t!%ns3

:a; Hear and de#!de %n appea' ad8!n!strat!)e #ases !n)%')!n %#!a's ande8p'%yees %& t"e C!)!' Ser)!#e. Its de#!s!%n s"a'' be na' e#ept t"%se !n)%')!nd!s8!ssa' %r separat!%n &r%8 t"e ser)!#e @"!#" 8ay be appea'ed t% t"e C%88!ss!%n.:E8p"as!s s$pp'!ed.;

7



INTRODUCTION

#'a!8!n t"at s!n#e t"e MS( de#!s!%n @as &%r d!s8!ssa' %r separat!%n &r%8 t"eser)!#e, b$t re!nstate8ent @!t"%$t '%ss %& sen!%r!ty r!"ts and @!t" pay8ent %& ba#6sa'ar!es, t"e sa!d MS( de#!s!%n s"%$'d be dee8ed na', !88ed!ate'y ee#$t%ry and$nappea'ab'e.

(et!t!%ner net #%ntends t"at ass$8!n, &%r t"e sa6e %& ar$8ent, t"at t"e de#!s!%n%& t"e MS( @as appea'ab'e, resp%ndent Dayan, e)en !n "!s #apa#!ty as *enera'Manaer %& t"e ((A, d!d n%t "a)e t"e 'ea' pers%na'!ty n%t t"e r!"t t% appea' t"ede#!s!%n %& t"e MS(, #!t!n (ararap" -, Se#t!%n >9, C"apter =, S$bt!t'e A, T!t'e I,%%6 0, %& Ee#$t!)e Order N%. 9 and t"e #ase %& (aredes )s. CSC, *.R. N%. <<-==,De#e8ber >, -997, -9 SCRA <>.

Ass$8!n &$rt"er t"at t"e MS( de#!s!%n @as appea'ab'e and t"at resp%ndent Dayan"ad t"e 'ea' pers%na'!ty t% appea' t"e MS( de#!s!%n, pet!t!%ner st!'' #%ntends t"att"e appea' s"%$'d n%t "a)e been !)en d$e #%$rse by t"e resp%ndent CSC be#a$set"e appea' @as n%t 'ed @!t" t"e pr%per d!s#!p'!n!n %#e !n a##%rdan#e @!t" sa8eSe#t!%n >9 %& Ee#$t!)e Order N%. 9, @"!#" !n t"!s #ase, s"%$'d be t"e DOTC, n%t@!t" t"e CSC F!e'd O#e at t"e ((A.

On t"e 8er!t %& t"e pet!t!%n, pet!t!%ner #'a!8s t"at ass$8!n e)en &$rt"er t"at anappea' '!es &r%8 t"e MS( de#!s!%n, t"at resp%ndent Dayan "ad t"e 'ea' pers%na'!ty%r stand!n t% !nst!t$te t"e appea' t"at !t @as 'ed @!t" t"e pr%per %#e, st!'' CSCRes%'$t!%n 97+94 @as rendered @!t" ra)e ab$se %& d!s#ret!%n be#a$se pet!t!%ner

#ann%t be s$spended &%r a''eed &a!'$re t% a##%$nt &%r p!e#es %& eK$!p8ent and #as"ad)an#es s!n#e t"!s !s n%t t"e ne'e#t %& d$ty #%nte8p'ated by Se#t!%n B4 %&(res!dent!a' Deree N%. <7= %r Se#t!%n >4 %& #"apter !n t"e C!)!' Ser)!#e !n Ee#$t!)eOrder 9. At 8%st, pet!t!%ner #an be "e'd '!ab'e &%r t"e 8%ney )a'$e %& t"eeK$!p8ent and ad)an#es as 8andated by Se#t!%n -75 %& (res!dent!a' De#ree N%.->>5, t"e *%)ern8ent A$d!t!n C%de %& t"e ("!'!pp!nes.

F%r !ts part, resp%ndent CSC 8a!nta!ns V

F!rst, t"at t"e na'!ty %& t"e MS( de#!s!%n !n t"e d!s#!p'!nary #ases as stated !nSe#t!%n -4, (ararap" :a;, %%6 0 %& Ee#$t!)e Order N%. 9, re'!ed $p%n bypet!t!%ner, !s 8%d!ed by se#t!%n -, (ararap" --, %%6 0, %& t"e sa8e Ee#$t!)eOrder N%. 9, @"!#" reads3

Se#. -. (%@ers and F$n#t!%ns. V T"e C%88!ss!%n s"a'' "a)e t"e &%''%@!n p%@ers

and &$n#t!%ns3

:--; Hear and de#!de ad8!n!strat!)e #ase !nst!t$ted by %r b%$"t d!re#t'y %r %nappea', !n#'$d!n #%ntested app%!nt8ents, and re)!e@ de#!s!%ns and a#t!%ns %& !ts%#es and %& t"e aen#!es atta#"ed t% !t.

F$rt"er8%re, re'e)ant pr%)!s!%ns %& Ee#$t!)e Order N% -B5 dated Febr$ary 5, -9<=a8end!n Se#t!%n -9:b; %& (res!dent!a' De#ree N%. <7= and Se#t!%n < %& (res!dent!a'De#ree N%. ->79 state, t"$s3

1HEREAS, !n t"e !nterest %& $st!#e, t"ere !s a need t% #%n&er $p%n t"e C!)!' Ser)!#eC%88!ss!%n $r!sd!#t!%n %)er appea' !n #%ntested %r pr%)!s!%na' app%!nt8ents and t%

8a6e !ts de#!s!%n t"ere%n, as @e'' as !n ad8!n!strat!)e d!s#!p'!nary #ases na' andre)!e@ab'e by t"e S$pre8e C%$rt.

Re'at!%ns"!p @!t" t"e C!)!' Ser)!#e C%88!ss!%n. T"e C%88!ss!%n s"a'' "ear andde#!de appea's &r%8 %t"er de#!s!%ns %& t"e %ard pr%)!ded t"at t"e de#!s!%ns %& t"eC%88!ss!%n s"a'' be s$be#t t% re)!e@ %n #ert!%rar! $p%n re#e!pt %& t"e #%py t"ere%&by t"e ar!e)ed part.

T"$s, resp%ndent CSC ar$es t"at !t !s dee8ed n%t t% "a)e '%st !ts appe''ate $r!sd!#t!%n %)er t"e de#!s!%ns %& t"e MS( !n ad8!n!strat!)e d!s#!p'!nary #ase.

Se#%nd, t"e #ase %& (aredes )s. CSC !s n%t app'!#ab'e. Resp%ndent Dayan appea'edt"e MS( de#!s!%n n%t !n "!s pers%na' #apa#!ty n%r !n p$rs$!t !n "!s pr!)ate !nterest,b$t as "ead %& ((A, be!n t"e enera' 8anaer t"ere%&.

T"!rd, t"e appea' @as 'ed @!t" t"e pr%per d!s#!p'!n!n %#e be#a$se t"e de#!s!%nappea'ed &r%8 @as t"at %& t"e MS(, %ne %& t"e %#es !n resp%ndent CSC. T"$s,resp%ndent CSC @as $st!ed !n !)!n d$e #%$rse t% ((As n%t!#e %& appea' 'ed @!t"!ts :CSC; F!e'd O#e at t"e ((A.

F!na''y, pet!t!%ners #'a!8 t"at "e !s '!ab'e %n'y &%r t"e 8%ney )a'$e %& t"e pr%pertyand #as" ad)an#es and #ann%t be ad8!n!strat!)e'y #"ared &%r s$#" !n&ra#t!%n !s

$ntenab'e and a 8%#6ery %& t"e #!)!' ser)!#e 'a@. F%r "!s &a!'$re t% a##%$nt &%r t"epr%perty $nder "!s #"are and t% '!K$!date "!s #as" ad)an#es, pet!t!%ner !s $!'ty %&*r%ss Ne'e#t %& D$ty and s"%$'d "a)e been d!s8!ssed &r%8 t"e ser)!#e !& n%8!t!at!n #!r#$8stan#es @ere #%ns!dered !n "!s &a)%r.

1e a)e d$e #%$rse t% t"e pet!t!%n and reK$!red t"e part!es t% 'e t"e!r respe#t!)e8e8%randa. A&ter #%ns!der!n t"e sa8e and t"e pert!nent 'a@s and $r!spr$den#e,1e nd t"at t"e pet!t!%n 8$st be ranted.

A&ter Mende? )s. C!)!' Ser)!#e C%88!ss!%n, :7> SCRA 945 -99-;, t"e etent %& t"ea$t"%r!ty %& resp%ndent CSC t% re)!e@ t"e de#!s!%ns %& t"e MS( !s n%@ a sett'ed8atter.

T"e C%$rt, !n sa!d #ase "e'd3

It !s a!%8at!# t"at t"e r!"t t% appea' !s 8ere'y a stat$t%ry pr!)!'ee and 8ay beeer#!sed %n'y !n t"e 8anner and !n a##%rdan#e @!t" t"e pr%)!s!%ns %& 'a@. :0!#t%r!asM!''!n C%., In#. )s. O#e %& t"e (res!dent!a' Ass!stant &%r Lea' Aa!rs, -5B SCRAB-<;.

A #$rs%ry read!n %& (.D. <7=, %t"er@!se 6n%@n as T"e ("!'!pp!nes C!)!' Ser)!#e La@s"%@s t"at sa!d 'a@ d%es n%t #%nte8p'ate a re)!e@ %& de#!s!%ns e%nerat!n %#ers%r e8p'%yees &r%8 ad8!n!strat!)e #"ares.

Se#t!%n B= pararap" :a; t"ere%&, pr%)!des3

T"e C%88!ss!%n s"a'' de#!de $p%n appea' a'' ad8!n!strat!)e d!s#!p'!nary #ases!n)%')!n t"e !8p%s!t!%n %& t"e pena'ty %& s$spens!%n &%r 8%re t"an t"!rty days, %r

-



INTRODUCTIONne !n an a8%$nt e#eed!n t"!rty days sa'ary, de8%t!%n !n ran6 %r sa'ary %rtrans&er, re8%)a' %r d!s8!ssa' &r%8 %#e. . . . :E8p"as!s s$pp'!ed; :p. =. R%''%;

Sa!d pr%)!s!%ns 8$st be read t%et"er @!t" Se#t!%n B9 pararap" :a; %& (.D. <75@"!#" #%nte8p'ates3

Appea's, @"ere a''%@ab'e, s"a'' be 8ade by t"e party ad)erse'y ae#ted by t"ede#!s!%n . . . :E8p"as!s s$pp'!ed; :p. -7>, R%''%;

T"e p"rase party ad)erse'y ae#t!)e by t"e de#!s!%n re&ers t% t"e %)ern8ente8p'%yees aa!nst @"%8 t"e ad8!n!strat!)e #ase !s 'ed &%r t"e p$rp%se %&d!s#!p'!nary a#t!%n @"!#" 8ay ta6e t"e &%r8 %& s$spens!%n, de8%t!%n !n ran6 %rsa'ary, trans&er, re8%)a' %r d!s8!ssa' &r%8 %#e. In t"e !nstant #ase, C%'%yan @"%'ed t"e appea' #ann%t be #%ns!dered an ar!e)ed party be#a$se "e !s n%t t"eresp%ndent %& t"e ad8!n!strat!)e #ase be'%@.

F!na''y, p$rs$ant t% Se#t!%n B= pararap" :b; %& (.D. <7=, t"e #!ty 8ay%r, as "ead %&t"e #!ty %)ern8ent, !s e8p%@ered t% en&%r#e $d8ent @!t" na'!ty %n 'esserpena't!es '!6e s$spens!%n &r%8 @%r6 &%r %ne 8%nt" and &%r&e!t$re %& sa'ary eK$!)a'entt% %ne 8%nt" aa!nst err!n e8p'%yees.

y !n&eren#e %r !8p'!#at!%n, t"e re8edy %& appea' 8ay be a)a!'ed %& %n'y !n a #ase@"ere t"e resp%ndent !s &%$nd $!'ty %& t"e #"ares 'ed aa!nst "!8. $t t"eresp%ndent !s e%nerated %& sa!d #"ares, as !n t"!s #ase, t"ere !s n% %##as!%n %n

appea'. :pp. 94=+94<; T"e ab%)e r$'!n !s a re!terat!%n %& t"e ear'!er pr%n%$n#e8ent !n (aredes )s. C!)!'Ser)!#e C%88!ss!%n, :-9 SCRA <> -997; #!ted by pet!t!%ner, @"ere 1e sa!d3

ased %n t"e ab%)e pr%)!s!%ns %& 'a@, appea' t% t"e C!)!' Ser)!#e C%88!ss!%n !n anad8!n!strat!)e #ase !s etended t% t"e party ad)erse'y ae#ted by t"e de#!s!%n, t"at!s, t"e pers%n %r t"e resp%ndent e8p'%yee @"% "as been 8eted %$t t"e pena'ty %&s$spens!%n &%r 8%re t"an t"!rty days/ %r ne !n an a8%$nt e#eed!n t"!rty dayssa'ary de8%t!%n !n ran6 %r sa'ary %r trans&er, re8%)a' %r d!s8!ssa' &r%8 %#e. T"ede#!s!%n %& t"e d!s#!p'!n!n a$t"%r!ty !s e)en na' and n%t appea'ab'e t% t"e C!)!'Ser)!#e C%88!ss!%n !n #ases @"ere t"e pena'ty !8p%sed !s s$spens!%n &%r n%t 8%ret"an t"!rty days %r ne !n an a8%$nt n%t e#eed!n t"!rty days sa'ary. Appea' !n#ases a''%@ed by 'a@ 8$st be 'ed @!t"!n &teen days &r%8 re#e!pt %& t"e de#!s!%n.

Here t"e MS( a&ter "ear!n and t"e s$b8!ss!%n %& 8e8%randa e%nerated pr!)ateresp%ndent A8%r %& a'' #"ares e#ept &%r "ab!t$a' tard!ness. T"e pena'ty @as %n'y arepr!8and s% t"at e)en pr!)ate resp%ndent A8%r, t"e party ad)erse'y ae#ted byt"e de#!s!%n, #ann%t e)en !nterp%se an appea' t% t"e C!)!' Ser)!#e C%88!ss!%n.

As #%rre#t'y r$'ed by resp%ndent, pet!t!%ner (aredes t"e #%8p'a!nant !s n%t t"e partad)erse'y ae#ted by t"e de#!s!%n s% t"at s"e "as n% 'ea' pers%na'!ty t% !nterp%sean appea' t% t"e C!)!' Ser)!#e C%88!ss!%n. In an ad8!n!strat!)e #ase, t"e#%8p'a!nant !s a 8ere @!tness :*%n?a'% )s. D. R%da, 4> SCRA -7;. E)en !& s"e !s t"eHead %& t"e Ad8!n!strat!)e Ser)!#es Depart8ent %& t"e HSRC as a #%8p'a!nt s"e !s8ere'y a @!tness &%r t"e %)ern8ent !n an ad8!n!strat!)e #ase. N% pr!)ate !nterest !s!n)%')ed !n an ad8!n!strat!)e #ase as t"e %ense !s #%88!tted aa!nst t"e%)ern8ent. :pp. 9<+99;

1"!'e !t !s tr$e, as #%ntended by resp%ndent C!)!' Ser)!#e C%88!ss!%n t"at $nderSe#t!%n - :par. --;, C"apter B, S$bt!t'e A, %%6 0 %& Ee#$t!)e Order 9, t"e CSCd%es "a)e t"e p%@er t% V

Hear and de#!de ad8!n!strat!)e #ases !nst!t$ted by %r br%$"t be&%re !t d!re#t'y %r %nappea', !n#'$d!n #%ntested app%!nt8ents, and re)!e@ de#!s!%ns and a#t!%ns %& !ts%#es and %& t"e aen#!es atta#"ed t% !t. . . .

t"e eer#!se %& t"e p%@er !s K$a'!ed by and s"%$'d be read t%et"er @!t" t"e %t"erse#t!%ns %& t"e sa8e s$b+t!t'e and b%%6 %& Ee#$t!)e Order 9, part!#$'ar'y Se#t!%n>9 @"!#" pres#r!bes t"e &%''%@!n reK$!s!tes &%r t"e eer#!se %& t"e p%@er %& appea',t% @!t3

:a; t"e de#!s!%n 8$st be appea'ab'e/

:b; t"e appea' 8$st be 8ade by t"e party ad)erse'y ae#ted by t"e de#!s!%n/

:#; t"e appea' 8$st be 8ade @!t"!n &teen days &r%8 re#e!pt %& t"e de#!s!%n,$n'ess a pet!t!%n &%r t"e re#%ns!derat!%n !s seas%nab'y 'ed/ and

:d; t"e n%t!#e %& appea' 8$st be 'ed @!t" t"e d!s#!p'!n!n %#e, @"!#" s"a''&%r@ard t"e re#%rds %& t"e #ase, t%et"er @!t" t"e n%t!#e %& appea' t% t"e appe''atea$t"%r!ty @!t"!n &teen days &r%8 '!n %& t"e n%t!#e %& appea', @!t" !ts #%88ents, !&any.

Under Se#t!%n >= %& t"e sa8e C%de, t"e CSC s"a'' de#!de %n appea' a''ad8!n!strat!)e d!s#!p'!nary #ases !n)%')!n t"e !8p%s!t!%n %&3

:a; a pena'ty %& s$spens!%n &%r 8%re t"an t"!rty days/ %r

:b; ne !n an a8%$nt e#eed!n t"!rty days sa'ary/ %r

#; de8%t!%n !n ran6 %r sa'ary %r trans&er/ %r

:d; re8%)a' %r d!s8!ssa' &r%8 %#e.

T"e Febr$ary 5, -997 de#!s!%n %& t"e MS( d!d n%t !n)%')e d!s8!ssa' %r separat!%n&r%8 %#e, rat"er, t"e de#!s!%n e%nerated pet!t!%ner and %rdered "!8 re!nstated t%"!s &%r8er p%s!t!%n. C%nseK$ent'y, !n t"e '!"t %& %$r pr%n%$n#e8ents !n t"e

a&%re#!ted #ases %& Mende? ). C!)!' Ser)!#e C%88!ss!%n and (aredes )s. C!)!' Ser)!#eC%88!ss!%n, t"e MS( de#!s!%n @as n%t a pr%per s$be#t %& appea' t% t"e CSC.

Sett'ed !s t"e r$'e t"at a tr!b$na', b%ard, %r %#er eer#!s!n $d!#!a' &$n#t!%ns a#ts@!t"%$t $r!sd!#t!%n !& n% a$t"%r!ty "as been #%n&erred by 'a@ t% "ear and de#!de t"e#ase. :A#ena ). C!)!' Ser)!#e C%88!ss!%n, -9B SCRA 4B -99-;.

1HEREFORE, t"e de#!s!%n %& t"e C!)!' Ser)!#e C%88!ss!%n !s "ereby ANNULLED andSET ASIDE and t"e de#!s!%n %& t"e Mer!t Syste8s (r%te#t!%n %ard dated Febr$ary 5,-997 !s "ereby REINSTATED.

SO ORDERED.

*.R. N%. 9757B Septe8ber =, -997



INTRODUCTION

NESTOR SANDO0AL, pet!t!%ner,)s.HON. DOROTEO CAEA, (res!d!n J$de, RTC, Man!'a, ran#" 7, DE(UTY SHERIFFOF MANILA :RTC, Man!'a, ran#" 7;, and ESTATE DE0ELO(ERS IN0ESTORSCOR(ORATION, resp%ndents.

Arn%'d 0. *$errer% Ass%#!ates &%r pet!t!%ner.

L!n% M. (ata% &%r pr!)ate resp%ndent.

*ANCAYCO, J.3

T"e !ss$e !n t"!s pet!t!%n !s @"et"er %r n%t t"e %rd!nary #%$rts "a)e $r!sd!#t!%n %)ert"e #%''e#t!%n %& $npa!d !nsta''8ents reard!n a s$bd!)!s!%n '%t.

On A$$st 7, -9<= pr!)ate resp%ndent 'ed a #%8p'a!nt !n t"e Re!%na' Tr!a' C%$rt:RTC; %& Man!'a &%r t"e #%''e#t!%n %& $npa!d !nsta''8ents reard!n a s$bd!)!s!%n '%t,p$rs$ant t% a pr%8!ss%ry n%te, p'$s !nterest. On Jan$ary 9, -9<< t"e tr!a' #%$rtrendered a de#!s!%n.

It appears t"at pet!t!%ner @as de#'ared !n de&a$'t s% 8$#" s% t"at a&ter re#e!)!n t"e

e)!den#e %& pr!)ate resp%ndent, t"e tr!a' #%$rt rendered !ts de#!s!%n %n Jan$ary-9,-9<<, t"e d!sp%s!t!)e p%rt!%n %& @"!#" reads as &%''%@s3

1HEREFORE, %n t"e a''eat!%ns and t"e prayer %& t"e #%8p'a!nt and t"e e)!den#eadd$#ed !n s$pp%rt t"ere&%r, $d8ent !s "ereby rendered, %rder!n t"e de&endantt% pay p'a!nt! t"e &%''%@!n3

-. T"e s$8 %& (=B,<4=.> p'$s !nterest and %t"er #"ares #%88en#!n &r%8 Jan$ary -, -9<< $nt!' &$''y pa!d/

. S$#" s$8 @"!#" s"a'' n%t be 'ess t"an (,777.77 %r 5 %& t"e a8%$nt %&de'!nK$en#y @"!#"e)er !s reater, as and &%r att%rneys &ees.

B. C%sts aa!nst t"e de&endant.

>. SO ORDERED. -

On Septe8ber <, -9<< t"e tr!a' #%$rt !ss$ed an %rder d!re#t!n t"e !ss$an#e %& a@r!t %& ee#$t!%n t% en&%r#e !ts de#!s!%n t"at "ad be#%8e na' and ee#$t%ry.

On Septe8ber B7, -9<< pet!t!%ner 'ed a 8%t!%n t% )a#ate $d8ent and t% d!s8!sst"e #%8p'a!nt %n t"e r%$nd t"at t"e '%@er #%$rt "as n% $r!sd!#t!%n %)er t"e s$be#t8atter and t"at !ts de#!s!%n !s n$'' and )%!d. A 8%t!%n &%r re#%ns!derat!%n %& t"e @r!t%& ee#$t!%n @as a's% 'ed by pet!t!%ner. An %pp%s!t!%n t% b%t" 8%t!%ns @as 'ed bypr!)ate resp%ndent t% @"!#" a rep'y @as 'ed by pet!t!%ner.

On Febr$ary -=, -9<9 t"e tr!a' #%$rt den!ed t"e 8%t!%n t% )a#ate t"e $d8ent %nt"e r%$nd t"at !t !s n%@ bey%nd t"e $r!sd!#t!%n %& t"e C%$rt t% d% s%. It d!re#ted t"e!ss$an#e %& a @r!t %& ee#$t!%n ane@.

Hen#e t"e "ere!n pet!t!%n @"ere!n !t !s a''eed t"at t"e tr!a' #%$rt #%88!tted a ra)eab$se %& d!s#ret!%n as &%''%@s3

5.-. T"e resp%ndent J$de ra)e'y ab$sed "!s d!s#ret!%n and a#ted @!t"%$t $r!sd!#t!%n !n ta6!n #%n!?an#e %& t"e #%8p'a!nt be&%re "!8 n%t@!t"stand!n t"ate#'$s!)e and %r!!na' $r!sd!#t!%n %)er t"e s$be#t+8atter t"ere%& !s )ested @!t" t"eH%$s!n and Land Use Re$'at%ry %ard :HLUR; p$rs$ant t% (D 95=.

5.. T"e resp%ndent J$de ra)e'y ab$sed "!s d!s#ret!%n and a#ted @!t"%$t $r!sd!#t!%n !n re&$s!n t% )a#ate "!s $d8ent rendered @!t"%$t $r!sd!#t!%n and !n!ss$!n a @r!t %& ee#$t!%n t% !8p'e8ent "!s ab%)esa!d )%!d $d8ent.

T"e pet!t!%n !s !8pressed @!t" 8er!t.

Under Se#t!%n - %& (res!dent!a' De#ree N%. 95= t"e Nat!%na' H%$s!n A$t"%r!ty :NHA;@as !)en t"e e#'$s!)e $r!sd!#t!%n t% "ear and de#!de #erta!n #ases as &%''%@s3

SEC.-. In t"e eer#!se %& !ts &$n#t!%n t% re$'ate t"e rea' estate trade and b$s!nessand !n add!t!%n t% !ts p%@ers pr%)!ded &%r !n (res!dent!a' De#ree N%. 95=, t"eNat!%na' H%$s!n A$t"%r!ty s"a'' "a)e e#'$s!)e $r!sd!#t!%n t% "ear and de#!de #ases%& t"e &%''%@!n nat$re3

A. Uns%$nd rea' estate b$s!ness pra#t!#es3

. C'a!8s !n)%')!n re&$nd and any %t"er #'a!8s 'ed by s$bd!)!s!%n '%t %r#%nd%8!n!$8 $n!t b$yer aa!nst t"e pr%e#t %@ner, de)e'%per, dea'er, br%6er %rsa'es8an/and

C. Cases !n)%')!n spe#!# per&%r8an#e %& #%ntra#t$a' and stat$t%ry%b'!at!%ns 'ed by b$yers %& s$bd!)!s!%n '%t %r #%nd%8!n!$8 $n!t aa!nst t"e %@ner,de)e'%per, dea'er, br%6er %r sa'es8an. :E8p"as!s s$pp'!ed.;

T"e 'an$ae %& t"!s se#t!%n, part!#$'ar'y, t"e se#%nd p%rt!%n t"ere%&, 'ea)es n%r%%8 &%r d%$bt t"at e#'$s!)e $r!sd!#t!%n %)er t"e #ase bet@een t"e pet!t!%ner andpr!)ate resp%ndent !s )ested n%t %n t"e RTC b$t %n t"e NHA. T"e NHA @as re+na8edH$8an Sett'e8ents Re$'at%ry C%88!ss!%n and t"erea&ter !t @as re+na8ed as t"eH%$s!n and Land Use Re$'at%ry %ard :HLUR;. B

Unden!ab'y t"e s$8 %& 8%ney s%$"t t% be #%''e#ted by pr!)ate resp%ndent &r%8pet!t!%ner represented $npa!d !nsta''8ents %& a s$bd!)!s!%n '%t @"!#" t"e pet!t!%nerp$r#"ased. (et!t!%ner a''ees t"at "e s$spended pay8ents t"ere%& be#a$se %& t"e&a!'$re %& t"e de)e'%per t% de)e'%p t"e s$bd!)!s!%n p$rs$ant t% t"e!r aree8ent.

In Ant!p%'% Rea'ty C%rp%rat!%n )s. Nat!%na' H%$s!n A$t"%r!ty, > t"e s$!t @"!#" @as'ed @!t" t"e NHA, '!6e@!se !n)%')ed n%n+pay8ent %& !nsta''8ents %)er a s$bd!)!s!%n'%t, @"ere!n t"!s C%$rt "e'd t"at t"e NHA "as e#'$s!)e a$t"%r!ty t% "ear and de#!det"e #ase.

In S%'!d H%8es, In#. )s. Teres!ta (aya@a', 5 t"!s C%$rt r$'ed t"at $p%n t"e !ss$an#e %& (res!dent!a' De#ree N%. 95=, t"e tr!a' #%$rt 8ay n% '%ner ass$8e $r!sd!#t!%n %)ert"e #ases en$8erated !n Se#t!%n - %& (res!dent!a' De#ree N%. B9=. 1e e)en statedt"ere!n t"at t"e H%$s!n and Land Use Re$'at%ry %ard "as t"e a$t"%r!ty t% a@ard

B





INTRODUCTIONOn Jan$ary >, -9<4, J$de As$n#!%n !ss$ed an%t"er Order ad8!tt!n t"e se#%nda8ended #%8p'a!nt and stat!n t"ere!n t"at t"e sa8e #%nst!t$ted pr%per#%8p'!an#e @!t" t"e Res%'$t!%n %& t"!s C%$rt and t"at a #%py t"ere%& s"%$'d be&$rn!s"ed t"e C'er6 %& C%$rt &%r t"e reassess8ent %& t"e d%#6et &ees. T"ereassess8ent by t"e C'er6 %& C%$rt based %n pr!)ate resp%ndents #'a!8 %& n%t 'esst"an (-7,777,777.77 as a#t$a' and #%8pensat%ry da8aes a8%$nted t%(B9,=<4.77 as d%#6et &ee. T"!s @as s$bseK$ent'y pa!d by pr!)ate resp%ndent.

(et!t!%ners t"en 'ed a pet!t!%n &%r #ert!%rar! @!t" t"e C%$rt %& Appea's K$est!%n!nt"e sa!d %rder %& J$d!e As$n#!%n dated Jan$ary >, -9<4.

On Apr!' >, -9<4, pr!)ate resp%ndent 'ed a s$pp'e8enta' #%8p'a!nt a''e!n anadd!t!%na' #'a!8 %& (7,777,777.77 as d.K8aes s% t"e t%ta' #'a!8 a8%$nts t% ab%$t(4>,47-,4B.=7. On O#t%ber -4, -9<4, %r s%8e se)en 8%nt"s a&ter '!n t"es$pp'e8enta' #%8p'a!nt, t"e pr!)ate resp%ndent pa!d t"e add!t!%na' d%#6et &ee %&(<7,B94.77. -

On A$$st -B, -9<=, t"e C%$rt %& Appea's rendered a de#!s!%n r$'!n, a8%n %t"ers,as &%''%@s3

1HEREFORE, $d8ent !s "ereby rendered3

-. Deny!n d$e #%$rse t% t"e pet!t!%n !n CA+*.R. S( N%. -, 79=-5 !ns%&ar as !tsee6s ann$'8ent %& t"e %rder

:a; deny!n pet!t!%ners 8%t!%n t% d!s8!ss t"e #%8p'a!nt, as a8ended, and

:b; rant!n t"e @r!t %& pre'!8!nary atta#"8ent, b$t !)!n d$e #%$rse t% t"ep%rt!%n t"ere%& K$est!%n!n t"e reassess8ent %& t"e d%#6et!n &ee, and reK$!r!n t"eH%n%rab'e resp%ndent C%$rt t% reassess t"e d%#6et!n &ee t% be pa!d by pr!)ateresp%ndent %n t"e bas!s %& t"e a8%$nt %& (5,>7-,=7=.77.

Hen#e, t"e !nstant pet!t!%n.

D$r!n t"e penden#y %& t"!s pet!t!%n and !n #%n&%r8!ty @!t" t"e sa!d $d8ent %&resp%ndent #%$rt, pr!)ate resp%ndent pa!d t"e add!t!%na' d%#6et &ee %& (4,>B.97%n Apr!' <, -9<<. B

T"e 8a!n t"r$st %& t"e pet!t!%n !s t"at t"e C%$rt %& Appea's erred !n n%t nd!n t"at

t"e '%@er #%$rt d!d n%t a#K$!re $r!sd!#t!%n %)er C!)!' Case N%. Q+>--== %n t"er%$nd %& n%npay8ent %& t"e #%rre#t and pr%per d%#6et &ee. (et!t!%ners a''ee t"at@"!'e !t 8ay be tr$e t"at pr!)ate resp%ndent "ad pa!d t"e a8%$nt %& (-<,<>.97 asd%#6et &ee as "ere!n+ab%)e re'ated, and #%ns!der!n t"at t"e t%ta' a8%$nt s%$"t t%be re#%)ered !n t"e a8ended and s$pp'e8enta' #%8p'a!nt !s (4>,47-,4B.=7 t"ed%#6et &ee t"at s"%$'d be pa!d by pr!)ate resp%ndent !s (5=,<-7.>9, 8%re %r 'ess.N%t "a)!n pa!d t"e sa8e, pet!t!%ners #%ntend t"at t"e #%8p'a!nt s"%$'d bed!s8!ssed and a'' !n#!dents ar!s!n t"ere&r%8 s"%$'d be ann$''ed. In s$pp%rt %& t"e!rt"e%ry, pet!t!%ners #!te t"e 'atest r$'!n %& t"e C%$rt !n Man#"ester De)e'%p8entC%rp%rat!%n )s. CA, > as &%''%@s3

T"e C%$rt a#K$!res $r!sd!#t!%n %)er any #ase %n'y $p%n t"e pay8ent %& t"epres#r!bed d%#6et &ee. An a8end8ent %& t"e #%8p'a!nt %r s!8!'ar p'ead!n @!'' n%tt"ereby )est $r!sd!#t!%n !n t"e C%$rt, 8$#" 'ess t"e pay8ent %& t"e d%#6et &ee

based %n t"e a8%$nts s%$"t !n t"e a8ended p'ead!n. T"e r$'!n !n t"e Maasp!Case !n s% &ar as !t !s !n#%ns!stent @!t" t"!s pr%n%$n#e8ent !s %)ert$rned andre)ersed.

On t"e %t"er "and, pr!)ate resp%ndent #'a!8s t"at t"e r$'!n !n Man#"ester #ann%tapp'y retr%a#t!)e'y t% C!)!' Case N%. Q>--== &%r at t"e t!8e sa!d #!)!' #ase @as 'ed!n #%$rt t"ere @as n% s$#" Man#"ester r$'!n as yet. F$rt"er, pr!)ate resp%ndenta)ers t"at @"at !s app'!#ab'e !s t"e r$'!n %& t"!s C%$rt !n Maasp! ). Ra8%'ete, 5@"ere!n t"!s C%$rt "e'd t"at t"e tr!a' #%$rt a#K$!red $r!sd!#t!%n %)er t"e #ase e)en !& t"e d%#6et &ee pa!d @as !ns$#!ent.

T"e #%ntent!%n t"at Man#"ester #ann%t app'y retr%a#t!)e'y t% t"!s #ase !s $ntenab'e.Stat$tes re$'at!n t"e pr%#ed$re %& t"e #%$rts @!'' be #%nstr$ed as app'!#ab'e t%a#t!%ns pend!n and $ndeter8!ned at t"e t!8e %& t"e!r passae. (r%#ed$ra' 'a@s areretr%spe#t!)e !n t"at sense and t% t"at etent. 4

In La?ar% )s. Enden#!a and Andres, = t"!s C%$rt "e'd t"at t"e pay8ent %& t"e &$''a8%$nt %& t"e d%#6et &ee !s an !nd!spensab'e step &%r t"e per&e#t!%n %& an appea'. Ina &%r#!b'e entry and deta!ner #ase be&%re t"e $st!#e %& t"e pea#e #%$rt %& Mana%a,(anas!nan, a&ter n%t!#e %& a $d8ent d!s8!ss!n t"e #ase, t"e p'a!nt! 'ed an%t!#e %& appea' @!t" sa!d #%$rt b$t "e dep%s!ted %n'y (<.77 &%r t"e d%#6et &ee,!nstead %& (-4.77 as reK$!red, @!t"!n t"e re'e8entary per!%d %& appea' %& )e :5;days a&ter re#e!)!n n%t!#e %& $d8ent. ('a!nt! dep%s!ted t"e add!t!%na' (<.77 t%#%8p'ete t"e a8%$nt %& t"e d%#6et &ee %n'y &%$rteen :->; days 'ater. On t"e bas!s %&

t"ese &a#ts, t"!s #%$rt "e'd t"at t"e C%$rt %& F!rst Instan#e d!d n%ta#K$!re $r!sd!#t!%nt% "ear and deter8!ne t"e appea' as t"e appea' @as n%t t"ereby per&e#ted.

In Lee )s. Rep$b'!#, < t"e pet!t!%ner 'ed a )er!ed de#'arat!%n %& !ntent!%n t%be#%8e a F!'!p!n% #!t!?en by send!n !t t"r%$" re!stered 8a!' t% t"e O#e %& t"eS%'!#!t%r *enera' !n -95B b$t t"e reK$!red '!n &ee @as pa!d %n'y !n -954, bare'y50 8%nt"s pr!%r t% t"e '!n %& t"e pet!t!%n &%r #!t!?ens"!p. T"!s C%$rt r$'ed t"at t"ede#'arat!%n @as n%t 'ed !n a##%rdan#e @!t" t"e 'ea' reK$!re8ent t"at s$#"de#'arat!%n s"%$'d be 'ed at 'east %ne year be&%re t"e '!n %& t"e pet!t!%n &%r#!t!?ens"!p. C!t!n La?ar%, t"!s C%$rt #%n#'$ded t"at t"e '!n %& pet!t!%nersde#'arat!%n %& !ntent!%n %n O#t%ber B, -95B pr%d$#ed n% 'ea' ee#t $nt!' t"ereK$!red '!n &ee @as pa!d %n May B, -954.

In Ma'!8!t )s. Dea8%, 9 t"e sa8e pr!n#!p'es en$n#!ated !n La?ar% and Lee @ereapp'!ed. It @as an %r!!na' pet!t!%n &%r K$% @arrant% #%ntest!n t"e r!"t t% %#e %&

pr%#'a!8ed #and!dates @"!#" @as 8a!'ed, addressed t% t"e #'er6 %& t"e C%$rt %& F!rstInstan#e, @!t"!n t"e %ne+@ee6 per!%d a&ter t"e pr%#'a8at!%n as pr%)!ded t"ere&%r by'a@. -7 H%@e)er, t"e reK$!red d%#6et &ees @ere pa!d %n'y a&ter t"e ep!rat!%n %& sa!dper!%d. C%nseK$ent'y, t"!s C%$rt "e'd t"at t"e date %& s$#" pay8ent 8$st bedee8ed t% be t"e rea' date %& '!n %& a&%resa!d pet!t!%n and n%t t"e date @"en !t@as 8a!'ed.

Aa!n, !n *ar!#a )s, 0asK$e?, -- t"!s C%$rt re!terated t"e r$'e t"at t"e d%#6et &ee8$st be pa!d be&%re a #%$rt @!'' a#t %n a pet!t!%n %r #%8p'a!nt. H%@e)er, @e a's%"e'd t"at sa!d r$'e !s n%t app'!#ab'e @"en pet!t!%ner see6s t"e pr%bate %& se)era'@!''s %& t"e sa8e de#edent as "e !s n%t reK$!red t% 'e a separate a#t!%n &%r ea#" @!''b$t !nstead "e 8ay "a)e %t"er @!''s pr%bated !n t"e sa8e spe#!a' pr%#eed!n t"enpend!n be&%re t"e sa8e #%$rt.

5



INTRODUCTION T"en !n Maasp!, - t"!s C%$rt re!terated t"e r$'!n !n Ma'!8!t and Lee t"at a #ase !sdee8ed 'ed %n'y $p%n pay8ent %& t"e d%#6et &ee reard'ess %& t"e a#t$a' date %&!ts '!n !n #%$rt. Sa!d #ase !n)%')ed a #%8p'a!nt &%r re#%)ery %& %@ners"!p andp%ssess!%n %& a par#e' %& 'and @!t" da8aes 'ed !n t"e C%$rt %& F!rst Instan#e %&Ceb$. Up%n t"e pay8ent %& (47.77 &%r t"e d%#6et &ee and (-7.77 &%r t"e s"er!s &ee,t"e #%8p'a!nt @as d%#6eted as C!)!' Case N%. R+--<<. T"e prayer %& t"e #%8p'a!nts%$"t t"at t"e Trans&er Cert!#ate %& T!t'e !ss$ed !n t"e na8e %& t"e de&endant bede#'ared as n$'' and )%!d. It @as a's% prayed t"at p'a!nt! be de#'ared as %@nert"ere%& t% @"%8 t"e pr%per t!t'e s"%$'d be !ss$ed, and t"at de&endant be 8ade t%pay 8%nt"'y renta's %& (B,577.77 &r%8 J$ne , -9>< $p t% t"e t!8e t"e pr%perty !sde'!)ered t% p'a!nt!, (577,777.77 as 8%ra' da8aes, att%rneys &ees !n t"e a8%$nt%& (57,777.77, t"e #%sts %& t"e a#t!%n and ee8p'ary da8aes !n t"e a8%$nt %&(577,777.77.

T"e de&endant t"en 'ed a 8%t!%n t% #%8pe' t"e p'a!nt! t% pay t"e #%rre#t a8%$nt%& t"e d%#6et &ee t% @"!#" an %pp%s!t!%n @as 'ed by t"e p'a!nt! a''e!n t"at t"ea#t!%n @as &%r t"e re#%)ery %& a par#e' %& 'and s% t"e d%#6et &ee 8$st be based %n!ts assessed )a'$e and t"at t"e a8%$nt %& (47.77 @as t"e #%rre#t d%#6et!n &ee. T"etr!a' #%$rt %rdered t"e p'a!nt! t% pay (B,-7>.77 as '!n &ee.

T"e p'a!nt! t"en 'ed a 8%t!%n t% ad8!t t"e a8ended #%8p'a!nt t% !n#'$de t"eRep$b'!# as t"e de&endant. In t"e prayer %& t"e a8ended #%8p'a!nt t"e ee8p'aryda8aes ear'!er s%$"t @as e'!8!nated. T"e a8ended prayer 8ere'y s%$"t 8%ra'da8aes as t"e #%$rt 8ay deter8!ne, att%rneys &ees %& (-77,777.77 and t"e #%sts

%& t"e a#t!%n. T"e de&endant 'ed an %pp%s!t!%n t% t"e a8ended #%8p'a!nt. T"e%pp%s!t!%n n%t@!t"stand!n, t"e a8ended #%8p'a!nt @as ad8!tted by t"e tr!a' #%$rt. T"e tr!a' #%$rt re!terated !ts %rder &%r t"e pay8ent %& t"e add!t!%na' d%#6et &ee @"!#"p'a!nt! assa!'ed and t"en #"a''ened be&%re t"!s C%$rt. ('a!nt! a''eed t"at "e pa!dt"e t%ta' d%#6et &ee !n t"e a8%$nt %& (47.77 and t"at !& "e "as t% pay t"e add!t!%na'&ee !t 8$st be based %n t"e a8ended #%8p'a!nt.

T"e K$est!%n p%sed, t"ere&%re, @as @"et"er %r n%t t"e p'a!nt! 8ay be #%ns!dered t%"a)e 'ed t"e #ase e)en !& t"e d%#6et!n &ee pa!d @as n%t s$#!ent. In Maasp!, 1ere!terated t"e r$'e t"at t"e #ase @as dee8ed 'ed %n'y $p%n t"e pay8ent %& t"e#%rre#t a8%$nt &%r t"e d%#6et &ee reard'ess %& t"e a#t$a' date %& t"e '!n %& t"e#%8p'a!nt/ t"at t"ere @as an "%nest d!eren#e %& %p!n!%n as t% t"e #%rre#t a8%$ntt% be pa!d as d%#6et &ee !n t"at as t"e a#t!%n appears t% be %ne &%r t"e re#%)ery %&pr%perty t"e d%#6et &ee %& (47.77 @as #%rre#t/ and t"at as t"e a#t!%n !s a's% %ne, &%rda8aes, 1e $p"e'd t"e assess8ent %& t"e add!t!%na' d%#6et &ee based %n t"e

da8aes a''eed !n t"e a8ended #%8p'a!nt as aa!nst t"e assess8ent %& t"e tr!a'#%$rt @"!#" @as based %n t"e da8aes a''eed !n t"e %r!!na' #%8p'a!nt.

H%@e)er, as a&%re#!ted, t"!s C%$rt %)ert$rned Maasp! !n Man#"ester. Man#"ester!n)%')es an a#t!%n &%r t%rts and da8aes and spe#!# per&%r8an#e @!t" a prayer &%rt"e !ss$an#e %& a te8p%rary restra!n!n %rder, et#. T"e prayer !n sa!d #ase !s &%r t"e!ss$an#e %& a @r!t %& pre'!8!nary pr%"!b!t%ry !n$n#t!%n d$r!n t"e penden#y %& t"ea#t!%n aa!nst t"e de&endants ann%$n#ed &%r&e!t$re %& t"e s$8 %& (B M!''!%n pa!d byt"e p'a!nt!s &%r t"e pr%perty !n K$est!%n, t"e atta#"8ent %& s$#" pr%perty %&de&endants t"at 8ay be s$#!ent t% sat!s&y any $d8ent t"at 8ay be rendered,and, a&ter "ear!n, t"e !ss$an#e %& an %rder reK$!r!n de&endants t% ee#$te a#%ntra#t %& p$r#"ase and sa'e %& t"e s$be#t pr%perty and ann$' de&endants !''ea'&%r&e!t$re %& t"e 8%ney %& p'a!nt!. It @as a's% prayed t"at t"e de&endants be 8adet% pay t"e p'a!nt! %!nt'y and se)era''y, a#t$a', #%8pensat%ry and ee8p'ary

da8aes as @e'' as 5 %& sa!d a8%$nts as 8ay be pr%)ed d$r!n t"e tr!a' &%ratt%rneys &ees. T"e p'a!nt! a's% as6ed t"e tr!a' #%$rt t% de#'are t"e tender %&pay8ent %& t"e p$r#"ase pr!#e %& p'a!nt! )a'!d and s$#!ent &%r p$rp%ses %&pay8ent, and t% 8a6e t"e !n$n#t!%n per8anent. T"e a8%$nt %& da8aes s%$"t !sn%t spe#!ed !n t"e prayer a't"%$" t"e b%dy %& t"e #%8p'a!nt a''ees t"e t%ta'a8%$nt %& %)er (=< M!''%n a''eed'y s$ered by p'a!nt!.

Up%n t"e '!n %& t"e #%8p'a!nt, t"e p'a!nt! pa!d t"e a8%$nt %& %n'y (>-7.77 &%r t"ed%#6et &ee based %n t"e nat$re %& t"e a#t!%n &%r spe#!# per&%r8an#e @"ere t"ea8%$nt !n)%')ed !s n%t #apab'e %& pe#$n!ary est!8at!%n. H%@e)er, !t @as %b)!%$s&r%8 t"e a''eat!%ns %& t"e #%8p'a!nt as @e'' as !ts des!nat!%n t"at t"e a#t!%n @as%ne &%r da8aes and spe#!# per&%r8an#e. T"$s, t"!s #%$rt "e'd t"e p'a!nt! 8$stbe assessed t"e #%rre#t d%#6et &ee #%8p$ted aa!nst t"e a8%$nt %& da8aes %&ab%$t (=< M!''!%n, a't"%$" t"e sa8e @as n%t spe''ed %$t !n t"e prayer %& t"e#%8p'a!nt.

Mean@"!'e, p'a!nt! t"r%$" an%t"er #%$nse', @!t" 'ea)e %& #%$rt, 'ed an a8ended#%8p'a!nt %n Septe8ber -, -9<5 by t"e !n#'$s!%n %& an%t"er #%+p'a!nt! ande'!8!nat!n any 8ent!%n %& t"e a8%$nt %& da8aes !n t"e b%dy %& t"e #%8p'a!nt.

T"e prayer !n t"e %r!!na' #%8p'a!nt @as 8a!nta!ned.

On O#t%ber -5, -9<5, t"!s C%$rt %rdered t"e re+assess8ent %& t"e d%#6et &ee !n t"esa!d #ase and %t"er #ases t"at @ere !n)est!ated. On N%)e8ber -, -9<5, t"e tr!a'#%$rt d!re#ted t"e p'a!nt! t% re#t!&y t"e a8ended #%8p'a!nt by stat!n t"e a8%$nts

@"!#" t"ey @ere as6!n &%r. T"!s p'a!nt! d!d as !nstr$#ted. In t"e b%dy %& t"e#%8p'a!nt t"e a8%$nt %& da8aes a''eed @as red$#ed t% (-7,777,777.77 b$t st!''n% a8%$nt %& da8aes @as spe#!ed !n t"e prayer. Sa!d a8ended #%8p'a!nt @asad8!tted.

App'y!n t"e pr!n#!p'e !n Maasp! t"at t"e #ase !s dee8ed 'ed %n'y $p%n pay8ent%& t"e d%#6et &ee reard'ess %& t"e a#t$a' date %& '!n !n #%$rt, t"!s C%$rt "e'd t"att"e tr!a' #%$rt d!d n%t a#K$!re $r!sd!#t!%n %)er t"e #ase by pay8ent %& %n'y (>-7.77&%r t"e d%#6et &ee. Ne!t"er #an t"e a8end8ent %& t"e #%8p'a!nt t"ereby )est

$r!sd!#t!%n $p%n t"e C%$rt. F%r a'' 'ea' p$rp%ses t"ere @as n% s$#" %r!!na'#%8p'a!nt d$'y 'ed @"!#" #%$'d be a8ended. C%nseK$ent'y, t"e %rder ad8!tt!n t"ea8ended #%8p'a!nt and a'' s$bseK$ent pr%#eed!ns and a#t!%ns ta6en by t"e tr!a'#%$rt @ere de#'ared n$'' and )%!d. -B

T"e present #ase, as ab%)e d!s#$ssed, !s a8%n t"e se)era' #ases %& $nder+

assess8ent %& d%#6et &ee @"!#" @ere !n)est!ated by t"!s C%$rt t%et"er @!t"Man#"ester. T"e &a#ts and #!r#$8stan#es %& t"!s #ase are s!8!'ar t% Man#"ester. Int"e b%dy %& t"e %r!!na' #%8p'a!nt, t"e t%ta' a8%$nt %& da8aes s%$"t a8%$nted t%ab%$t (57 M!''!%n. In t"e prayer, t"e a8%$nt %& da8aes as6ed &%r @as n%t stated.

T"e a#t!%n @as &%r t"e re&$nd %& t"e pre8!$8 and t"e !ss$an#e %& t"e @r!t %&pre'!8!nary atta#"8ent @!t" da8aes. T"e a8%$nt %& %n'y (-7.77 @as pa!d &%r t"ed%#6et &ee. On Jan$ary B, -9<4, pr!)ate resp%ndent 'ed an a8ended #%8p'a!nt@"ere!n !n t"e prayer !t !s as6ed t"at "e be a@arded n% 'ess t"an (-7,777,777.77 asa#t$a' and ee8p'ary da8aes b$t !n t"e b%dy %& t"e #%8p'a!nt t"e a8%$nt %& "!spe#$n!ary #'a!8 !s appr%!8ate'y (>>,47-,4B.=7. Sa!d a8ended #%8p'a!nt @asad8!tted and t"e pr!)ate resp%ndent @as reassessed t"e add!t!%na' d%#6et &ee %&(B9,=<4.77 based %n "!s prayer %& n%t 'ess t"an (-7,777,777.77 !n da8aes, @"!#""e pa!d.

4



INTRODUCTIONOn Apr!' >, -9<4, pr!)ate resp%ndent 'ed a s$pp'e8enta' #%8p'a!nt a''e!n anadd!t!%na' #'a!8 %& (7,777,777.77 !n da8aes s% t"at "!s t%ta' #'a!8 !sappr%!8ate'y (4>,47-,47.=7. On O#t%ber -4, -9<4, pr!)ate resp%ndent pa!d anadd!t!%na' d%#6et &ee %& (<7,B94.77. A&ter t"e pr%8$'at!%n %& t"e de#!s!%n %& t"eresp%ndent #%$rt %n A$$st B-, -9<= @"ere!n pr!)ate resp%ndent @as %rdered t% bereassessed &%r add!t!%na' d%#6et &ee, and d$r!n t"e penden#y %& t"!s pet!t!%n, anda&ter t"e pr%8$'at!%n %& Man#"ester, %n Apr!' <, -9<<, pr!)ate resp%ndent pa!d anadd!t!%na' d%#6et &ee %& (4,-B.9. A't"%$" pr!)ate resp%ndent appears t% "a)epa!d a t%ta' a8%$nt %& (-<,<>.97 &%r t"e d%#6et &ee #%ns!der!n t"e t%ta' a8%$nt%& "!s #'a!8 !n t"e a8ended and s$pp'e8enta' #%8p'a!nt a8%$nt!n t% ab%$t(4>,47-,47.=7, pet!t!%ner !ns!sts t"at pr!)ate resp%ndent 8$st pay a d%#6et &ee %&(5=,<-7.>9.

T"e pr!n#!p'e !n Man#"ester #%$'d )ery @e'' be app'!ed !n t"e present #ase. T"epattern and t"e !ntent t% de&ra$d t"e %)ern8ent %& t"e d%#6et &ee d$e !t !s %b)!%$sn%t %n'y !n t"e '!n %& t"e %r!!na' #%8p'a!nt b$t a's% !n t"e '!n %& t"e se#%nda8ended #%8p'a!nt.

H%@e)er, !n Man#"ester, pet!t!%ner d!d n%t pay any add!t!%na' d%#6et &ee $nt!' t"e#ase @as de#!ded by t"!s C%$rt %n May =, -9<=. T"$s, !n Man#"ester, d$e t% t"e&ra$d #%88!tted %n t"e %)ern8ent, t"!s C%$rt "e'd t"at t"e #%$rt a K$% d!d n%ta#K$!re $r!sd!#t!%n %)er t"e #ase and t"at t"e a8ended #%8p'a!nt #%$'d n%t "a)ebeen ad8!tted !nas8$#" as t"e %r!!na' #%8p'a!nt @as n$'' and )%!d.

In t"e present #ase, a 8%re '!bera' !nterpretat!%n %& t"e r$'es !s #a''ed &%r #%ns!der!nt"at, $n'!6e Man#"ester, pr!)ate resp%ndent de8%nstrated "!s @!''!nness t% ab!deby t"e r$'es by pay!n t"e add!t!%na' d%#6et &ees as reK$!red. T"e pr%8$'at!%n %&t"e de#!s!%n !n Man#"ester 8$st "a)e "ad t"at s%ber!n !n$en#e %n pr!)ateresp%ndent @"% t"$s pa!d t"e add!t!%na' d%#6et &ee as %rdered by t"e resp%ndent#%$rt. It tr!ered "!s #"ane %& stan#e by 8an!&est!n "!s @!''!nness t% pay s$#"add!t!%na' d%#6et &ee as 8ay be %rdered.

Ne)ert"e'ess, pet!t!%ners #%ntend t"at t"e d%#6et &ee t"at @as pa!d !s st!''!ns$#!ent #%ns!der!n t"e t%ta' a8%$nt %& t"e #'a!8. T"!s !s a 8atter @"!#" t"e#'er6 %& #%$rt %& t"e '%@er #%$rt andG%r "!s d$'y a$t"%r!?ed d%#6et #'er6 %r #'er6 !n+#"are s"%$'d deter8!ne and, t"erea&ter, !& any a8%$nt !s &%$nd d$e, "e 8$streK$!re t"e pr!)ate resp%ndent t% pay t"e sa8e.

T"$s, t"e C%$rt r$'es as &%''%@s3

-. It !s n%t s!8p'y t"e '!n %& t"e #%8p'a!nt %r appr%pr!ate !n!t!at%ry p'ead!n,b$t t"e pay8ent %& t"e pres#r!bed d%#6et &ee, t"at )ests a tr!a' #%$rt @!t"

$r!sd!#t!%n %)er t"e s$be#t 8atter %r nat$re %& t"e a#t!%n. 1"ere t"e '!n %& t"e!n!t!at%ry p'ead!n !s n%t a##%8pan!ed by pay8ent %& t"e d%#6et &ee, t"e #%$rt 8aya''%@ pay8ent %& t"e &ee @!t"!n a reas%nab'e t!8e b$t !n n% #ase bey%nd t"eapp'!#ab'e pres#r!pt!)e %r re'e8entary per!%d.

. T"e sa8e r$'e app'!es t% per8!ss!)e #%$nter#'a!8s, t"!rd party #'a!8s ands!8!'ar p'ead!ns, @"!#" s"a'' n%t be #%ns!dered 'ed $nt!' and $n'ess t"e '!n &eepres#r!bed t"ere&%r !s pa!d. T"e #%$rt 8ay a's% a''%@ pay8ent %& sa!d &ee @!t"!n areas%nab'e t!8e b$t a's% !n n% #ase bey%nd !ts app'!#ab'e pres#r!pt!)e %rre'e8entary per!%d.

B. 1"ere t"e tr!a' #%$rt a#K$!res $r!sd!#t!%n %)er a #'a!8 by t"e '!n %& t"eappr%pr!ate p'ead!n and pay8ent %& t"e pres#r!bed '!n &ee b$t, s$bseK$ent'y, t"e

$d8ent a@ards a #'a!8 n%t spe#!ed !n t"e p'ead!n, %r !& spe#!ed t"e sa8e "asbeen 'e&t &%r deter8!nat!%n by t"e #%$rt, t"e add!t!%na' '!n &ee t"ere&%r s"a''#%nst!t$te a '!en %n t"e $d8ent. It s"a'' be t"e resp%ns!b!'!ty %& t"e C'er6 %& C%$rt%r "!s d$'y a$t"%r!?ed dep$ty t% en&%r#e sa!d '!en and assess and #%''e#t t"eadd!t!%na' &ee.

1HEREFORE, t"e pet!t!%n !s DISMISSED &%r 'a#6 %& 8er!t. T"e C'er6 %& C%$rt %& t"e#%$rt a K$% !s "ereby !nstr$#ted t% reassess and deter8!ne t"e add!t!%na' '!n &eet"at s"%$'d be pa!d by pr!)ate resp%ndent #%ns!der!n t"e t%ta' a8%$nt %& t"e #'a!8s%$"t !n t"e %r!!na' #%8p'a!nt and t"e s$pp'e8enta' #%8p'a!nt as 8ay be 'eaned&r%8 t"e a''eat!%ns and t"e prayer t"ere%& and t% reK$!re pr!)ate resp%ndent t% payt"e de#!en#y, !& any, @!t"%$t pr%n%$n#e8ent as t% #%sts.

SO ORDERED.

*.R. N%. L+>4<7 O#t%ber =, -94<

JESUSA 0DA. DE MUR*A, p'a!nt!+appe''ee,)s.

JUANITO CHAN, de&endant+appe''ant.

J%se *% and Fernand% (. 'an#% &%r p'a!nt!+appe''ee.

Abe'ard% A. C'!8a#%, T. de '%s Reyes, Enr!K$e A. Fernande? and Ernan! Cr$? (aX% &%rde&endant+appe''ant.

AN*ELES, J.3

In t"!s appea', t@% !ss$es !n)%')!n K$est!%ns %& 'a@ are p%sed &%r res%'$t!%n3 F!rst,@"et"er %r n%t t"e a''eat!%ns !n t"e #%8p'a!nt #%nst!t$te a #a$se %& a#t!%n &%r$n'a@&$' deta!ner, and #%n&er $r!sd!#t!%n %)er t"e #ase t% t"e 8$n!#!pa' #%$rt :n%@#!ty #%$rt; %& Za8b%ana C!ty, $nder t"e pr%)!s!%ns %& R$'e =7 %& t"e R$'es %& C%$rtand de#!s!%ns !nterpret!n t"e sa8e, @"en part!#$'ar'y #%ns!dered !n t"e '!"t %& t"e#%ntet$re %& t"e pert!nent 'etter %& de8and t% )a#ate t"e 'eased pre8!ses :Anne J%& t"e C%8p'a!nt;, #%$#"ed !n t"e &%''%@!n @!se3

('ease be ad)!sed &$rt"er t"at @e re!terate %$r de8and 8ade t% y%$ !n %$rre!stered 'etter dated Febr$ary >, -959 :t% )a#ate t"e 'eased pre8!ses; @"!#" @as

re#e!)ed by y%$ %n t"e -7t" !nstant, $n'ess y%$ pay t"e a8%$nt %& S! H$ndredpes%s :(477.77; %r Se)en H$ndred pes%s :(=77.77; as ne@ renta' per %$r 'etter %& Jan$ary -9, -959, be&%re t"e ep!rat!%n %& t"e -5+day per!%d ranted y%$ &%r)a#at!n t"e sa8e.

and, Se#%nd, @"et"er %r n%t t"e 'ess%r and t"e 'essee "ad areed $p%n ana$t%8at!# rene@a' %& t"e 'ease %& t"e pre8!ses, $nder t"e st!p$'at!%n !n #'a$se = %& t"e #%rresp%nd!n #%ntra#t %& 'ease, #%nta!n!n t"e &%''%@!n aree8ent3

=. V T"at $p%n t"e ter8!nat!%n %& t"e ter8 %& Ten :-7; years ab%)e epressed, t"esa!d Jes$sa 0da. de M$ra s"a'' "a)e t"e %pt!%n t% p$r#"ase t"e b$!'d!n %r b$!'d!nsbe'%n!n t% and #%nstr$#ted by t"e sa!d J$an!t% C"an, and t"e pr!#e %& sa!d b$!'d!n%r b$!'d!ns s"a'' be deter8!ned by t"ree #%88!ss!%ners, t@% %& @"%8 s"a'' beapp%!nted by ea#" %& t"e part!es, and t"e re8a!nder #%88!ss!%ner s"a'' be

=



INTRODUCTIONapp%!nted by b%t". H%@e)er, !n t"e e)ent t"at t"e sa!d Jes$sa 0da. de M$ra s"a''n%t eer#!se t"e r!"t ranted "er &%r any reas%n %r #a$se, t"!s #%ntra#t %& 'eases"a'' be a$t%8at!#a''y rene@ed b$t t"e per!%d &%r sa!d rene@a' s"a'', "%@e)er, beed and ad$sted aa!n by t"e part!es. It !s areed &$rt"er t"at !n #ase %& sa!drene@a', t"e renta' s"a'' a's% be ad$sted by t"e part!es depend!n %n t"e b$s!ness#%nd!t!%n @"!#" s"a'' t"en at t"at t!8e pre)a!'. :E"!b!t A.;

Jes$sa 0da. de M$ra @as t"e %@ner %& t@% par#e's %& 'and !n t"e C!ty %&Za8b%ana, des!nated as '%ts B4 and B< %& t"e #adastra' p'an %& t"e p'a#e, and#%)ered by Trans&er Cert!#ates %& T!t'e N%s. BB= and BB<, respe#t!)e'y.

On Jan$ary B-, -9>9, a #%ntra#t %& 'ease %)er sa!d t@% '%ts @as entered !nt% by andbet@een Jes$sa 0da. de M$ra as 'ess%r, and J$an!t% C"an as 'essee, t"e bas!# ter8s%& @"!#" pert!nent t% t"e present #ase are3 T"e per!%d %& t"e 'ease @as ten :-7;years &r%8 Jan$ary B-, -9>9/ t"e 'essee t% pay a 8%nt"'y rent %& (577.77 @!t"!n t"erst ten days %& e)ery 8%nt"/ @!t" t"e #%nsent %& t"e 'ess%r, t"e 'essee 8ay!ntr%d$#e !8pr%)e8ents %n t"e 'and/ and C'a$se = K$%ted "ere!nab%)e. :E"!b!tA.;

Up%n ta6!n p%ssess!%n %& t"e 'eased pre8!ses, @!t" t"e #%nsent %& t"e 'ess%r, t"e'essee !ntr%d$#ed !8pr%)e8ents %n t"e 'and #%ns!st!n %& b$!'d!ns %& t"e t%ta' #%sts%& (=7,777.77. It !s n%t d!sp$ted t"at t"e 'essee pa!d !n &$'' t"e 8%nt"'y rent d$r!nt"e ten+ year per!%d %& t"e 'ease.

As ear'y as J$'y B, -95<, be&%re t"e ep!rat!%n %& t"e ten+year per!%d %& t"e 'ease,t"ere "ad been !nter#%$rse %& #%88$n!#at!%ns bet@een t"e 'ess%r and t"e 'essee &%rt"e rene@a' %& t"e 'ease, b$t t"e part!es &a!'ed t% arr!)e at an aree8ent/ "en#e, t"!sa#t!%n by t"e 'ess%r aa!nst t"e 'essee.

T"$s, %n J$'y B, -95<, t"e 'ess%r !n&%r8ed t"e 'essee %& "er @!''!nness t% rene@ t"e'ease &%r )e years at a 8%nt"'y rent %& (=77.77. :E"!b!t .; In "!s rep'y t"e 'esseesa!d3

... M$#" as I a8 @!''!n t% #%ns!der t"e s$ested !n#rease %& renta', "%@e)er, I@%$'d '!6e t% p'ead @!t" y%$ t"at d$e t% )ery p%%r b$s!ness at present, I 8ay n%t beab'e t% #%ns!der y%$r !nd!#ated !n#rease. :E"!b!t C.;

On A$$st -, -95<, t"e 'ess%r ad)!sed t"e 'essee t"at3

e!nn!n Febr$ary -, -959, ... t"e renta' %& 8y '%ts ... @!'' be (=77.77. :E"!b!t D.;On Jan$ary -<, -959, t"e 'essee ad)!sed t"e 'ess%r t"at s"e :'ess%r; s"%$'d p$r#"aset"e b$!'d!ns #%nstr$#ted %n t"e 'and !n a##%rdan#e @!t" t"e st!p$'at!%n !n t"e#%ntra#t %& 'ease, and V

... In #ase y%$ d% n%t aree @!t" t"e p$r#"ase %& t"e a&%resa!d b$!'d!ns, I a8 @!''!nt% #%nt!n$e %##$py!n t"e 'and and ee#$te a ne@ #%ntra#t %& 'ease, b$t I a8appea'!n t% y%$ t% ta6e !nt% #%ns!derat!%n t"e pre)a!'!n b$s!ness #%nd!t!%ns byred$#!n t"e 8%nt"'y renta' t% (>77.77, ... :E"!b!t L.;

On Jan$ary -9, -959, t"e 'ess%r rep'!ed t"at V

... s"e ree#ts t"e %pt!%n t% p$r#"ase t"e b$!'d!ns, ... and "er present 'ast %er !s3:a; S! "$ndred pes%s :(477.77; renta's payab'e @!t"!n t"e rst &teen days %& e)ery8%nt", @!t"%$t #%ntra#t/ %r :b; Se)en "$ndred pes%s :(=77.77; renta's payab'e@!t"!n t"e rst &teen days %& e)ery 8%nt", %ne year ad)an#ed renta', @!t" a )e+year #%ntra#t. :E"!b!t F.;

On Jan$ary 7, -959, t"e 'ess%r !n&%r8ed t"e 'essee t"at t"e #%nd!t!%ns stated !n t"e'atters 'etter %& Jan$ary -<, -959, @ere n%t a##eptab'e t% "er. :E"!b!t *.;

On Jan$ary -, -959, t"e 'essee ad)!sed t"e 'ess%r t"at "e :'essee; #ann%t a##eptt"e #%nd!t!%ns stated !n "er :'ess%rs; 'etters %& Jan$ary -9 and 7, -959 V

... y, !ns!sts K$e 0d. #%8pre 8!s #asas en#'a)adas en '%s '%tes %bet% dearrenda8!ent%. Y en #as% de s$ neat!)e se$!re %#$pand% e' s%'ar ba% e' pa% de$n a'K$!'er 8ens$a' de Q$!n!ent%s pes%s :(577.77; deb!d% a' ne%#!% re!nante enest%s d!as, ta' #%8% esta d!sp$est% en e' #%ntrat% de arrenda8!ent% r8ad% p%r 0d.y y% e' d!a B- de Ener% de -9>9. :E"!b!t H.;

On Febr$ary >, -959, t"e 'ess%r 8ade de8and %n t"e 'essee t% )a#ate t"e pre8!sesV

... &%r t"e reas%n t"at t"e 'ease #%ntra#t "ad ep!red %n Jan$ary B-, -959, ... and t"e'ess%r "ad @a!)ed t"e r!"t t% eer#!se t"e %pt!%n ranted "er $nder pararap" =%& sa!d #%ntra#t, ... :E"!b!t I.;

On Febr$ary -4, -959, t"e 'essee sent "!s #"e#6 &%r (577.77 t% t"e 'ess%r !npay8ent %& t"e 8%nt"'y renta' #%rresp%nd!n t% t"e 8%nt" %& Febr$ary, -959. :SeeE"!b!t J.;

On Febr$ary -9, -959, t"e 'ess%r ret$rned t% t"e 'essee t"e #"e#6 @"!#" t"e 'atter"ad sent t% t"e &%r8er, stat!n &$rt"er !n t"e 'etter t"at s"e @as de8and!n t"at t"e'eased pre8!ses be )a#ated, !& "e :'ess%r; @%$'d n%t aree t% pay t"e ne@ renta' %&(477.77 %r (=77.77 a 8%nt" be!nn!n Febr$ary -, -959, as e8b%d!ed !n t"e 'etter,E"!b!t J, "ere!nab%)e K$%ted.

D!sreard!n t"e @r!tten de8and %& t"e 'ess%r, dated Febr$ary -9, -959, E"!b!t J,t"e 'essee #"%se t% re8a!n !n t"e p%ssess!%n %& t"e 'eased pre8!ses and !ns!stedt"at t"e #%ntra#t %& 'ease st!p$'ated an a$t%8at!# rene@a' %& t"e 'ease, and#%n&%r8ab'y t"eret%, "e "as a r!"t t% #%nt!n$e %##$py!n t"e pre8!ses/ and as

t%6en %& "!s de#!s!%n, "e sent t% t"e 'ess%r "!s #"e#6 &%r (577.77 !n pay8ent %& t"e8%nt"'y rent #%rresp%nd!n t% t"e 8%nt" %& Febr$ary -959. T"e 'ess%r @as$nd%$bted'y n%t sat!sed @!t" t"e tendered a8%$nt %& (577.77, be#a$se s"e "adde8anded (477.77 %r (=77.77, as ne@ 8%nt"'y rent as a #%nd!t!%n &%r t"e rene@a'%& t"e 'ease. And @!t"%$t any &$rt"er den!te de8and %n t"e 'essee t% )a#ate t"epre8!ses 'ed, %n Mar#" -7, -959, a #%8p'a!nt %& $n'a@&$' deta!ner !n t"e 8$n!#!pa'#%$rt %& Za8b%ana C!ty aa!nst t"e 'essee, J$an!t% C"an, t% ee#t t"e 'atter &r%8t"e 'eased pre8!ses. T"e &a#ts a''eed !n t"e #%8p'a!nt as #a$se %& a#t!%n, #%ns!sted!n repr%d$#!n and re!terat!n t"e s$bstan#e %& t"e #%rresp%nden#e e#"anedbet@een 'ess%r and 'essee, as narrated ab%)e, and #'a!8!n t"at t"e p%ssess!%n %&t"e 'essee %& t"e pre8!ses "ad be#%8e !''ea' by "!s &a!'$re and re&$sa' t% pay t"e!n#reased ne@ renta'. F%r re'!e&, t"e p'a!nt! prayed t"at t"e de&endant be %rdered t%)a#ate t"e pre8!ses, and TO (AY THE NE1 RENTS DEMANDED OF (477.77 %r(=77.77 FROM FERUARY -, -959 MONTHLY AS THE CASE MAY E. Atta#"ed t% t"e

<



INTRODUCTION#%8p'a!nt, as annees t"eret%, @ere #%p!es %& t"e 'etters e#"aned bet@een t"e'ess%r and t"e 'essee, E"!b!ts t% J.

In "!s ans@er :as a8ended;, t"e de&endant ad8!tt!n t"e en$!neness anda$t"ent!#!ty %& t"e 'etters anneed t% t"e #%8p'a!nt, b$t tra)ers!n s%8e %& t"ea''eat!%ns t"ere!n, ra!sed t"e de&enses %& 'a#6 %& $r!sd!#t!%n %& t"e #%$rt %)er t"e#ase, and 'a#6 %& #a$se %& a#t!%n &%r $n'a@&$' deta!ner.

A&ter a tr!a', de#!s!%n @as rendered %rder!n t"e de&endant t% )a#ate t"e pre8!ses,t% pay t"e p'a!nt! t"e s$8 %& (477.77 as 8%nt"'y rent &r%8 Febr$ary -, -959, and(577.77 as att%rneys &ees.

T"e de&endant appea'ed &r%8 t"e de#!s!%n t% t"e C%$rt %& F!rst Instan#e %&Za8b%ana C!ty. e&%re t"!s C%$rt, t"e de&endant aa!n ra!sed t"e spe#!a' de&enses%& 'a#6 %& $r!sd!#t!%n %& t"e 8$n!#!pa' #%$rt and 'a#6 %& #a$se %& a#t!%n &%r $n'a@&$'deta!ner. R$'!n %n t"e !ss$e %& 'a#6 %& $r!sd!#t!%n, t"e #%$rt sa!d3

1!t" re&eren#e t% t"e #%ntent!%n %& de&endant t"at t"e 8$n!#!pa' #%$rt "ad n% $r!sd!#t!%n t% try t"!s #ase be#a$se t"e !nterpretat!%n, app'!#at!%n and en&%r#e8ent%& t"e ter8s %& t"e Lease Aree8ent !s @!t"!n t"e #%8peten#e %& a #%$rt "!"er t"ant"at %& t"e 8$n!#!pa' #%$rt, deser)es "ard'y any d!s#$ss!%n. S$#e !t t% say t"at t"e

$r!sd!#t!%n %& t"e 8$n!#!pa' #%$rt !s r%$nded %n Se#t!%n << %& t"e J$d!#!ary A#t %&-9><.

A&ter a tr!a', t"e C%$rt %& F!rst Instan#e rendered $d8ent %rder!n t"e de&endant t%)a#ate t"e pre8!ses, t% pay t"e p'a!nt! t"e s$8 %& (-,77.77 &r%8 Febr$ary -,-959, as 8%nt"'y renta' %& t"e 'and, and (,777.77 as att%rneys &ees.

Fr%8 t"e &%re%!n de#!s!%n, t"e de&endant !nterp%sed a d!re#t appea' t% t"!s C%$rt. T"ere&%re, %n'y K$est!%ns %& 'a@ 8ay be #%ns!dered !n t"!s appea'.

A8%n t"e &%$r err%rs ass!ned by t"e appe''ant !n "!s br!e&, t"e rst t@% p%se t"e!ss$e %& 'a#6 %& $r!sd!#t!%n %& t"e 8$n!#!pa' C%$rt and %& t"e 'a#6 %& #a$se %& a#t!%n&%r $n'a@&$' deta!ner/ t"e re8a!n!n err%rs de')!n %n K$est!%ns %& &a#t @"!#", byreas%n %& t"e nat$re %& t"e appea' are, t"ere&%re, dee8ed ad8!tted and 8ay n%t bere)!e@ed !n t"!s appea'.

In re'at!%n t% t"e !ss$e %& 'a#6 %& $r!sd!#t!%n %& t"e 8$n!#!pa' #%$rt %)er t"e #ase, !t!s t% be n%ted t"at, a&ter t"e 'ess%r and t"e 'essee "ad &a!'ed t% aree %n t"e rene@a'

%& t"e 'ease @"!#" ter8!nated %n Jan$ary B-, -959, t"e 'ess%r, %n Febr$ary -9, -959,sent t"e de8and 'etter "ere!nab%)e K$%ted, E"!b!t J. It @as, t"en, as !t !s n%@, t"e#%ntent!%n %& t"e 'essee t"at s$#" de8and !s n%t t"at 6!nd %& de8and #%nte8p'ated!n t"e R$'es %& C%$rt as #%8p'y!n @!t" t"e $r!sd!#t!%na' reK$!re8ent V t"atde8and t% )a#ate !s !nd!spensab'e !n %rder t% deter8!ne @"et"er t"e tenantsp%ssess!%n "as be#%8e !''ea'. On t"!s 8atter, t"e r$'!ns !n t"e &%''%@!n #ases arepert!nent and app'!#ab'e3

T"e n%t!#e !)!n 'essee t"e a'ternat!)e e!t"er t% pay t"e !n#reased renta' %r%t"er@!se t% )a#ate t"e 'and !s n%t t"e de8and #%nte8p'ated by t"e R$'es %& C%$rt!n $n'a@&$' deta!ner #ases. 1"en a&ter s$#" n%t!#e, t"e 'essee e'e#ts t% stay, "et"ereby 8ere'y ass$8es t"e ne@ renta' and #ann%t be ee#ted $nt!' "e de&a$'ts !nsa!d %b'!at!%n and ne#essary de8and !s rst 8ade. :Man%t%6 )s. *$!nt%, L+95>7,Apr!' B7, -95=.;

T"e 'ess%r 8ay, $nder Art!#'e -549 %& t"e C!)!' C%de, $d!#!a''y d!sp%sses t"e 'essee&%r de&a$'t !n t"e pay8ent %& t"e pr!#e areed $p%n. $t @"ere s$#" de&a$'t !s based%n t"e &a#t t"at t"e rent s%$"t t% be #%''e#ted !s n%t t"at areed $p%n, an a#t!%n &%ree#t8ent #ann%t '!e. :e'8%nte )s. Mart!n, > O. *a?. N%. -7, ->4.;

In t"e #ase at bar, !t #'ear'y appears &r%8 t"e de8and 'etter %& Febr$ary -9, -959,t"at t"e %b'!at!%n t% )a#ate t"e 'eased pre8!ses @%$'d be dependent %n t"e &a!'$re%& t"e 'essee t% aree t% t"e ne@ rent de8anded by t"e 'ess%r. As t"e 'essee,"%@e)er, @as !n t"e p"ys!#a' p%ssess!%n %& t"e 'and by )!rt$e %& a pr!%r #%ntra#t %&'ease, and t"e de8and @as !n t"e a'ternat!)e !8p%s!n a ne@ renta', e)en @!t"%$tta6!n !nt% a##%$nt t"e e#a#y %& t"e st!p$'at!%n &%r an a$t%8at!# rene@a' %& t"e'ease, @"!#" s"a'' be d!s#$ssed "erea&ter, !n t"e '!"t %& t"e r$'!n !n e'8%nte )s.Mart!n, s$pra, @!t"%$t any s$bseK$ent den!te de8and t% )a#ate t"e pre8!ses,s$be#t t% n% #%nd!t!%n, t"e 'essee d!d n%t !n#$r !n de&a$'t @"!#" @%$'d !)e r!se t% ar!"t %n t"e part %& t"e 'ess%r t% br!n an a#t!%n %& $n'a@&$' deta!ner.

De')!n %n t"e se#%nd spe#!a' de&ense t% @!t, t"at t"e a''eat!%ns !n t"e #%8p'a!ntd% n%t #%nst!t$te a #a$se %& a#t!%n %& $n'a@&$' deta!ner, !t !s t"e #%ntent!%n %& t"e'essee+appe''ant t"at #'a$se = %& t"e #%ntra#t %& 'ease, K$%ted "ere!nab%)e, 8eantan epress rant t% t"e 'essee t% rene@ t"e 'ease at "!s %pt!%n, #%ntrary t% t"e #'a!8%& t"e 'ess%r+appe''ee t"at t"ere 8$st be a pr!%r 8$t$a' aree8ent %& t"e part!es. As@e read #'a$se =, 1e nd t"at !t en)!s!%ned t"e "appen!n %& t@% e)ent$a'!t!es att"e ep!rat!%n %& t"e 'ease %n Jan$ary B-, -959 V e!t"er t"e 'ess%r 8ay p$r#"aset"e !8pr%)e8ents #%nstr$#ted by t"e 'essee %n t"e 'and, %r !n #ase t"e 'ess%r &a!'s,&%r any #a$se %r reas%n, t% eer#!se t"e %pt!%n t% b$y, t"e 'ease s"a'' be dee8eda$t%8at!#a''y rene@ed. T"e e)!den#e "as estab'!s"ed t"at t"e 'ess%r "ad re&$sed t%b$y t"e b$!'d!ns %n t"e 'and. T"e state8ent !n sa!d #'a$se = t"at !n #ase %&rene@a' t"e d$rat!%n %& t"e 'ease and t"e ne@ renta' t% be pa!d s"a'' be ad$sted byt"e part!es, !s %& n% 8%8ent !n t"e s%'$t!%n %& t"e !ss$e, @"et"er %r n%t t"e &a#tsa''eed !n t"e #%8p'a!nt #%nst!t$te a #a$se %& a#t!%n %& $n'a@&$' deta!ner. T"ep'ead!ns %& t"e part!es, and t"e annees t"eret%, #'ear'y s"%@ t"at t"e $$'ar )e!n%& t"e #%ntr%)ersy "!nes %n t"e #%rre#t !nterpretat!%n %& #'a$se = %& t"e #%ntra#t%& 'ease, a 8atter %$ts!de t"e $r!sd!#t!%n %& t"e 8$n!#!pa' #%$rt. T"e 'ess%r+appe''ee8a!nta!ns t"at t"e 'ease "ad ter8!nated %n Jan$ary B-, -959, rene@ab'e %n'y $p%n ane@ aree8ent %& t"e part!es/ %n t"e %t"er "and, t"e 'essee+appe''ant #%ntendst"at, !nas8$#" as t"e #%ntr%)ersy "!nes %n t"e !nterpretat!%n %& #'a$se = %& t"e#%ntra#t, t"at !s, @"et"er %r n%t sa!d #'a$se #%nte8p'ated an a$t%8at!# rene@a' %&t"e 'ease, t"e a#t!%n @as n%t &%r $n'a@&$' deta!ner b$t %ne n%t #apab'e %& pe#$n!ary

est!8at!%n and, t"ere&%re, bey%nd t"e #%8peten#e %& t"e 8$n!#!pa' #%$rt. T"e #%ntent!%n %& t"e 'essee+appe''ant 8$st be s$sta!ned.

In Cr$? )s. A'bert%, B9 ("!'. 99-, t"e #%ntra#t %& 'ease "ad t"e &%''%@!n pr%)!s!%n3

T"at t"e ter8 %& t"!s #%ntra#t %& 'ease s"a'' be s! years &r%8 t"e date %& t"eee#$t!%n, and etend!b'e &%r an%t"er s! years areed $p%n by b%t" part!es.

It @as #%ntended by t"e 'ess%r t"at t"e 'ease #ann%t be etended e#ept $p%n8$t$a' aree8ent. R$'!n %n t"e #%ntent!%n, t"e S$pre8e C%$rt sa!d3

1e are %& t"e %p!n!%n t"at t"e tr!a' $de @as ent!re'y #%rre#t !n "!s !nterpretat!%n %&t"e #%ntra#ts !n K$est!%n/ and t"%$" !t 8$st be ad8!tted t"at t"!s !nterpretat!%n

9



INTRODUCTIONrenders t"e @%rds areed $p%n by b%t" part!es s$per$%$s yet t"!s d%es n%t!n)%')e any stra!n $p%n t"e 8ean!n %& t"e ent!re passae. I& t"e !nterpretat!%n@"!#" t"e appe''ant @%$'d "a)e $s ad%pt be tr$e, t"e ent!re #'a$se re'at!)e t% t"eetens!%n %& t"e ter8 @%$'d be s$per$%$s, &%r !& t"e etens!%n !s %n'y t% beee#t!)e $p%n a ne@ aree8ent %& t"e part!es t% be 8ade at t"e ep!rat!%n %& t"e%r!!na' ter8, @"y s"%$'d anyt"!n at a'' be sa!d ab%$t an etens!%n (art!es @"% are&ree t% 8a6e %ne #%ntra#t %& 'ease are #erta!n'y &ree t% 8a6e a ne@ %ne @"en t"e%'d "as ep!red @!t"%$t be!n re8!nded %& t"e!r &a#$'ty t% d% s% by t"e !nsert!%n %& a#'a$se %& t"!s 6!nd !n t"e rst 'ease. T"!s @%$'d n%t %n'y be s$per$%$s b$tn%nsens!#a'. T"e #'a$se re'at!)e t% t"e etens!%n %& t"e 'ease s"%$'d, !& p%ss!b'e, bes% !nterpreted as t% !)e !t s%8e &%r#e.

As @e !nterpret t"e #%ntra#ts be&%re $s, t"e part!es 8eant t% epress t"e &a#t t"att"ey "ad a'ready areed t"at t"ere 8!"t be an etens!%n %& t"e 'ease and "adareed $p%n !ts d$rat!%n, t"$s !)!n t"e de&endant t"e r!"t %& e'e#t!%n t% ta6e &%r ase#%nd ter8 %r t% K$!t $p%n t"e ep!rat!%n %& t"e %r!!na' ter8. T"e #'a$se !nK$est!%n "as t"e sa8e 8ean!n as !& t"e @%rds areed $p%n by b%t" part!es "adbeen %8!tted and t"e passae "ad #'%sed @!t" a per!%d a&ter t"e @%rd years !n t"erst #%ntra#t and a&ter etens!%n !n t"e t"!rd #%ntra#t.

It "as been "e'd by t"!s #%$rt t"at t"e @%rd etend!b'e stand!n @!t"%$tK$a'!#at!%n !n a #%ntra#t %& 'ease, 8eans t"at t"e ter8 %& t"e 'ease 8ay beetended and !s eK$!)a'ent t% a pr%8!se t% etend, 8ade by t"e 'ess%r t% t"e 'essee,and, as $n!'atera' st!p$'at!%n, %b'!es t"e pr%8!s%r t% &$''' "!s pr%8!se. :Learda 2%")s. Ons!a6%, B4 ("!'. Rep. -<5;. S$#" a st!p$'at!%n !s s$pp%rted by t"e #%ns!derat!%n@"!#" !s at t"e bas!s %& t"e #%ntra#t %& 'ease :-4 R.C.L. pp. <<B, <<>; and %b)!%$s'y!n)%')es a 8$t$a'!ty %& benet, %r re#!pr%#!ty, bet@een t"e part!es, n%t@!t"stand!nt"e r!"t %& e'e#t!%n !s #%n#eded s%'e'y t% t"e 'essee. As a enera' r$'e, !n #%nstr$!npr%)!s!%ns %& t"!s #"ara#ter, t"e tenant !s &a)%red, @"ere t"ere !s any $n#erta!nty,and n%t t"e 'and'%rd, $p%n t"e pr!n#!p'e t"at a rant s"%$'d be ta6en 8%st str%n'yaa!nst t"e rant%r. :-5 R.C.L. p. <<>, > Cy#. 9-5.;

In t"e #ase %& Learda 2%" )s. Ons!a#%, B4 ("!'. -<9+-97, t"e #%ntra#t %& 'ease "adt"!s pr%)!s!%n3

T"e ter8 %& t"e sa!d #%ntra#t s"a'' be &%r %ne year, #%$nt!n &r%8 t"e -st %&De#e8ber %& t"e present year :-94B; @"!#" ter8 s"a'' be etend!b'e at t"e @!'' %&b%t" part!es.

Sa!d t"e S$pre8e C%$rt3A##%rd!n t% Art!#'e -79- %& t"e C!)!' C%de, %b'!at!%ns ar!s!n &r%8 #%ntra#ts "a)e'ea' &%r#e bet@een t"e #%ntra#t!n part!es and 8$st be &$'''ed !n a##%rdan#e @!t"t"e!r st!p$'at!%n. T"ere&%re, !& t"e de&endant b%$nd "!8se'& t% 'ease "!s pr%pert!es &%rt"e per!%d %& %ne year, @"!#" ter8 s"%$'d be etend!b'e, !t !s e)!dent and str!#t'y !na##%rd @!t" $st!#e t"at t"e p'a!nt!+'essee "as a r!"t, at t"e ter8!nat!%n %& t"e rstper!%d %& %ne year, t% "a)e t"e sa!d #%ntra#t %& 'ease rene@ed !n &$'''8ent %& t"est!p$'ated etens!%n %& t"e ter8 %& t"e 'ease/ %t"er@!se, t"e #'a$se #%nta!ned !n t"ed%#$8ent E"!b!t -, t"at t"e 'ease at !ts ter8!nat!%n @%$'d be etend!b'e, @%$'d be@%rt"'ess.

T"e de&endant+appe''ant !s @r%n !n "!s #%ntent!%n t"at t"e rene@a' %r etens!%n %&t"e #%ntra#t depended s%'e'y $p%n "!8se'&, n%t@!t"stand!n t"e st!p$'at!%ns

#%nta!ned !n sa!d #%ntra#t, !nas8$#" as t"e rene@a' and #%nt!n$at!%n %& t"e 'ease#%$'d n%t be 'e&t @"%''y t% t"e p'a!nt!s &ree @!'', @!t"%$t #%$nt!n %n t"ede&endants #%nsent V a #%nsent epress'y ranted !n t"e pr%8!se t"at t"e ter8@%$'d be etended, @"!#" ter8, a't"%$" !ts d$rat!%n @as n%t ed, s"%$'d be$nderst%%d t% be &%r an%t"er year, a per!%d eK$a' t% and n%t reater t"an t"e ter8%& t"e 'ease.

1"en a #%ntra#t %& 'ease pr%)!des t"at t"e ter8 t"ere%& !s etend!b'e, t"earee8ent !s $nderst%%d as be!n !n &a)%r %& t"e 'essee, and t"e 'atter !s a$t"%r!?edt% rene@ t"e #%ntra#t and t% #%nt!n$e t% %##$py t"e 'eased pr%perty, a&ter n%t!&y!nt"e 'ess%r t% t"at ee#t. T"e 'ess%r #an @!t"dra@ &r%8 t"e sa!d #%ntra#t %n'y a&ter"a)!n &$'''ed "!s pr%8!se t% rant t"e etens!%n %& t!8e st!p$'ated t"ere!n, $n'esst"e 'essee "as &a!'ed t% #%8p'y @!t" %r "as )!%'ated t"e #%nd!t!%ns %& t"e #%ntra#t. It!s n%t ne#essary t"at t"e etens!%n be epress'y #%n#eded by t"e 'ess%r be#a$se "e#%nsented t"eret% !n t"e %r!!na' #%ntra#t.

U(ON THE FORE*OIN* CONSIDERATIONS, 1e de#'are t"at t"e 8$n!#!pa' #%$rt :n%@#!ty #%$rt; %& Za8b%ana C!ty "ad n% $r!sd!#t!%n %)er t"e #ase/ t"ere&%re, t"eappea'ed de#!s!%n !s set as!de and re)ersed, @!t" #%sts aa!nst t"e p'a!nt!+appe''ee.

*.R. N%. ->4-95 N%)e8ber -<, 77>

A0ELINA ZAMORA, EMERITA ZAMORA+NICOL, SONNY NICOL, TERESA ZAMORA+UMALI,CLARENCE UMALI, ROERTO ZAMORA, ROLANDO ZAMORA, MARY ANN ZAMORA,

MICHELLE ZAMORA and RODRI*O ZAMORA, pet!t!%ners,)s.HEIRS %& CARMEN IZQUIERDO, represented by t"e!r att%rney+!n+&a#t, ANITA F.(UNZALAN, resp%ndents.

D E C I S I O N

SANDO0AL+*UTIERREZ, J.3

e&%re $s !s a pet!t!%n &%r re)!e@ %n #ert!%rar!- assa!'!n t"e De#!s!%n %& t"e C%$rt%& Appea's dated Septe8ber -, 777 and !ts Res%'$t!%n dated De#e8ber -, 777 !nCA+*.R. S( N%. 5>5>-, ent!t'ed A)e'!na Za8%ra, et a'., pet!t!%ners, )ers$s He!rs %&Car8en I?K$!erd%, represented by t"e ee#$tr!, An!ta F. ($n?a'an, resp%ndents.

T"e re#%rds s"%@ t"at s%8et!8e !n -9=B, Car8en I?K$!erd% and (ab'% Za8%raentered !nt% a )erba' st!p$'at!%n @"ereby t"e &%r8er 'eased t% t"e 'atter %ne %& "erapart8ent $n!ts '%#ated at --=+ *enera' L$na Street, Ca'%%#an C!ty. T"ey areed%n t"e &%''%@!n3 t"e renta' !s (B,777.77 per 8%nt"/ t"e 'eased pre8!ses !s %n'y &%rres!den#e/ and %n'y a s!n'e &a8!'y !s a''%@ed t% %##$py !t.

A&ter t"e deat" %& Car8en :'ess%r; !n -994 "er att%rney+!n+&a#t, An!ta ($n?a'an,represent!n t"e "e!rs, "ere!n resp%ndents, prepared a ne@ #%ntra#t %& 'ease@"ere!n t"e renta' @as !n#reased &r%8 (B,777.77 t% (B,477.77 per 8%nt".BH%@e)er, pet!t!%ners re&$sed t% s!n !t.

In Jan$ary -99=, (ab'% :'essee; d!ed. H!s @!&e, A)e'!na Za8%ra, and t"e!r #"!'dren:t@% %& @"%8 "a)e t"e!r %@n &a8!'!es;, "ere!n pet!t!%ners, #%nt!n$ed t% res!de !n t"e

B7



INTRODUCTIONapart8ent $n!t. H%@e)er, t"ey re&$sed t% pay t"e !n#reased renta' and pers!sted !n%perat!n a p"%t%#%py!n b$s!ness !n t"e sa8e apart8ent.

Mean@"!'e, pet!t!%ner A)e'!na Za8%ra app'!ed @!t" t"e Metr%p%'!tan 1ater@%r6s Se@erae Syste8 :M1SS; &%r a @ater '!ne !nsta''at!%n !n t"e pre8!ses. S!n#e a@r!tten #%nsent &r%8 t"e %@ner !s reK$!red &%r s$#" !nsta''at!%n, s"e reK$estedresp%ndents att%rney+!n+&a#t t% !ss$e !t. H%@e)er, t"e 'atter de#'!ned be#a$sepet!t!%ners re&$sed t% pay t"e ne@ renta' rate and )!%'ated t"e restr!#t!%ns %n t"e$se %& t"e pre8!ses by $s!n a p%rt!%n t"ere%& &%r p"%t%#%py!n b$s!ness anda''%@!n t"ree &a8!'!es t% res!de t"ere!n.

T"!s pr%8pted pet!t!%ner A)e'!na Za8%ra t% 'e @!t" t"e O#e %& t"e ($n%naranay %& aranay -4, S%na , D!str!#t I, L$ns%d n Ca'%%#an, a #%8p'a!ntaa!nst An!ta ($n?a'an :resp%ndents att%rney+!n+&a#t;, d%#6eted as Usap!n y.'. -+=+9=, U6%' sa3 H!nd! (ab!b!ay n (a"!nt$'%t sa (apapa6ab!t n T$b!.

On A$$st >, -99=, d$r!n t"e baranay #%n#!'!at!%n pr%#eed!ns, pet!t!%nerA)e'!na Za8%ra de#'ared t"at s"e re&$sed t% s!n t"e ne@ 'ease #%ntra#t be#a$ses"e !s n%t areeab'e @!t" t"e #%nd!t!%ns spe#!ed t"ere!n.

T"e &%''%@!n day, An!ta ($n?a'an sent A)e'!na a 'etter> !n&%r8!n "er t"at t"e 'ease!s be!n ter8!nated and de8and!n t"at pet!t!%ners )a#ate t"e pre8!ses @!t"!n B7days &r%8 n%t!#e.

Desp!te se)era' baranay #%n#!'!at!%n sess!%ns, t"e part!es &a!'ed t% sett'e t"e!rd!sp$te a8!#ab'y. Hen#e, t"e aranay C"a!r8an !ss$ed a Cert!#at!%n t% F!'e A#t!%ndated Septe8ber ->, -99=.5

C%nseK$ent'y, %n O#t%ber , -99=, resp%ndents, represented by An!ta ($n?a'an,'ed @!t" t"e Metr%p%'!tan Tr!a' C%$rt :MTC;, ran#" >9, Ca'%%#an C!ty, a #%8p'a!nt&%r $n'a@&$' deta!ner and da8aes aa!nst pet!t!%ners, d%#6eted as C!)!' Case N%.B=7.4 F%rt"@!t", pet!t!%ners 'ed a 8%t!%n t% d!s8!ss= t"e #%8p'a!nt %n t"er%$nd t"at t"e #%ntr%)ersy @as n%t re&erred t% t"e baranay &%r #%n#!'!at!%n. F!rst,t"ey a''eed t"at t"e baranay Cert!#at!%n t% F!'e A#t!%n !s &ata''y de&e#t!)ebe#a$se !t perta!ns t% an%t"er d!sp$te, !.e., t"e re&$sa' by resp%ndents att%rney+!n+&a#t t% !)e "er @r!tten #%nsent t% pet!t!%ners reK$est &%r !nsta''at!%n %& @ater&a#!'!t!es !n t"e pre8!ses. And, se#%nd, @"en t"e part!es &a!'ed t% rea#" an a8!#ab'esett'e8ent be&%re t"e L$p%n Taapa8ayapa, t"e ($n%n aranay :as L$p%nC"a!r8an;, d!d n%t #%nst!t$te t"e (an6at n Taapa6as$nd% be&%re @"%8

8ed!at!%n %r arb!trat!%n pr%#eed!ns s"%$'d "a)e been #%nd$#ted, !n )!%'at!%n %&Se#t!%n >-7:b;, C"apter = :2atar$nan (a8baranay;, T!t'e One, %%6 III %&Rep$b'!# A#t N%. =-47< :%t"er@!se 6n%@n as t"e L%#a' *%)ern8ent C%de %& -99-;,@"!#" reads3

SECTION >-7. (r%#ed$re &%r A8!#ab'e Sett'e8ent.

:a;

:b; Med!at!%n by '$p%n #"a!r8an Up%n re#e!pt %& t"e #%8p'a!nt, t"e '$p%n#"a!r8an9 s"a'', @!t"!n t"e net @%r6!n day, s$88%n t"e resp%ndent:s;, @!t"n%t!#e t% t"e #%8p'a!nant:s; &%r t"e8 and t"e!r @!tnesses t% appear be&%re "!8 &%r a8ed!at!%n %& t"e!r #%n!#t!n !nterests. I& "e &a!'s !n "!s 8ed!at!%n e%rt @!t"!n &teen:-5; days &r%8 t"e rst 8eet!n %& t"e part!es be&%re "!8, "e s"a'' &%rt"@!t" set a

date &%r t"e #%nst!t$t!%n %& t"e pan6at !n a##%rdan#e @!t" t"e pr%)!s!%ns %& t"!sC"apter. :Unders#%r!n s$pp'!ed;

Resp%ndents %pp%sed t"e 8%t!%n t% d!s8!ss,-7 t"e sa8e be!n pr%"!b!ted $nderSe#t!%n -9 %& t"e -99- Re)!sed R$'e %n S$88ary (r%#ed$re. T"ey prayed t"at

$d8ent be rendered as 8ay be @arranted by t"e &a#ts a''eed !n t"e #%8p'a!nt,p$rs$ant t% Se#t!%n 4-- %& t"e sa8e R$'e.

On J$'y 9, -99<, t"e MTC !ss$ed an Order- deny!n pet!t!%ners 8%t!%n t% d!s8!ssand #%ns!der!n t"e #ase s$b8!tted &%r de#!s!%n !n )!e@ %& t"e!r &a!'$re t% 'e t"e!rans@er t% t"e #%8p'a!nt.

(et!t!%ners 'ed a 8%t!%n &%r re#%ns!derat!%n,-B #%ntend!n t"at a 8%t!%n t% d!s8!sst"e #%8p'a!nt %n t"e r%$nd %& &a!'$re t% re&er t"e #%8p'a!nt t% t"e L$p%n &%r#%n#!'!at!%n !s a''%@ed $nder Se#t!%n -9 %& t"e -99- Re)!sed R$'e %n S$88ary(r%#ed$re, @"!#" part'y pr%)!des3

SEC. -9. (r%"!b!ted p'ead!ns and 8%t!%ns. T"e &%''%@!n p'ead!ns, 8%t!%ns, %rpet!t!%ns s"a'' n%t be a''%@ed !n t"e #ases #%)ered by t"!s R$'e3

:a; M%t!%n t% d!s8!ss t"e #%8p'a!nt %r t% K$as" t"e #%8p'a!nt %r !n&%r8at!%n e#ept%n t"e r%$nd %& 'a#6 %& $r!sd!#t!%n %)er t"e s$be#t 8atter, %r &a!'$re t% #%8p'y@!t" t"e pre#ed!n se#t!%n re&err!n t% Se#t!%n -< %n re&erra' %& t"e #%8p'a!nt t% t"eL$p%n &%r #%n#!'!at!%n/

.

On A$$st 4, -99<, t"e MTC rendered a J$d8ent-> !n &a)%r %& resp%ndents andaa!nst pet!t!%ners, t"e d!sp%s!t!)e p%rt!%n %& @"!#" reads3

1HEREFORE, J$d8ent !s "ereby rendered !n &a)%r %& t"e p'a!nt! and aa!nst t"ede&endants, %rder!n de&endants and a'' pers%ns #'a!8!n r!"t $nder t"e83

-; T% )a#ate t"e 'eased pre8!ses '%#ated at N%. --=+ *enera' L$na Street, Ca'%%#anC!ty and t% s$rrender p%ssess!%n t"ere%& t% t"e p'a!nt!/

; T% pay t"e a8%$nt %& t"ree t"%$sand s! "$ndred :(B,477.77; pes%s per 8%nt"start!n Jan$ary, -99= $nt!' t"e pre8!ses be!n %##$p!ed by t"e8 !s na''y )a#atedand p%ssess!%n t"ere%& !s rest%red t% t"e p'a!nt!/

B; T% pay p'a!nt! t"e s$8 %& )e t"%$sand :(5,777.77; pes%s as and &%r att%rneys&ees/ and

>; T% pay t"e #%sts %& t"!s s$!t.

SO ORDERED.

On appea', t"e Re!%na' Tr!a' C%$rt :RTC;, ran#" -5, Ca'%%#an C!ty, rendered !tsDe#!s!%n-5 dated Febr$ary -5, -999 ar8!n t"e MTC J$d8ent. S$bseK$ent'y, !tden!ed pet!t!%ners 8%t!%n &%r re#%ns!derat!%n.-4

B-



INTRODUCTION(et!t!%ners t"en 'ed @!t" t"e C%$rt %& Appea's a pet!t!%n &%r re)!e@, d%#6eted as CA+*.R. S( N%. 5>5>-. On Septe8ber -, 777, !t rendered a De#!s!%n-= ar8!n t"eRTC De#!s!%n.

T"erea&ter, pet!t!%ners 'ed a 8%t!%n &%r re#%ns!derat!%n b$t @as den!ed by t"eAppe''ate C%$rt !n !ts Res%'$t!%n dated De#e8ber -, 777.-<

Hen#e, t"e !nstant pet!t!%n.

I

T"e pr!8%rd!a' %be#t!)e %& (res!dent!a' De#ree N%. -57< :t"e 2atar$nan(a8baranay La@;, n%@ !n#'$ded $nder R.A. N%. =-47 :t"e L%#a' *%)ern8ent C%de%& -99-;, !s t% red$#e t"e n$8ber %& #%$rt '!t!at!%ns and pre)ent t"e deter!%rat!%n%& t"e K$a'!ty %& $st!#e @"!#" "as been br%$"t ab%$t by t"e !nd!s#r!8!nate '!n %&#ases !n t"e #%$rts.-9 T% atta!n t"!s %be#t!)e, Se#t!%n >-:a; %& R.A. N%. =-47reK$!res t"e part!es t% $nder% a #%n#!'!at!%n pr%#ess be&%re t"e L$p%n C"a!r8an %rt"e (an6at as a pre#%nd!t!%n t% '!n a #%8p'a!nt !n #%$rt, t"$s3

SECTION >-. C%n#!'!at!%n. :a; (re+#%nd!t!%n t% F!'!n %& C%8p'a!nt !n C%$rt. N%#%8p'a!nt, pet!t!%n, a#t!%n, %r pr%#eed!n !n)%')!n any 8atter @!t"!n t"e a$t"%r!ty%& t"e '$p%n s"a'' be 'ed %r !nst!t$ted d!re#t'y !n #%$rt %r any %t"er %)ern8ent%#e &%r ad$d!#at!%n, $n'ess t"ere "as been a #%n&r%ntat!%n bet@een t"e part!esbe&%re t"e '$p%n #"a!r8an %r t"e pan6at, and t"at n% #%n#!'!at!%n %r sett'e8ent "asbeen rea#"ed as #ert!ed by t"e '$p%n %r pan6at se#retary and attested t% by t"e'$p%n %r pan6at #"a!r8an . :Unders#%r!n s$pp'!ed;

In t"e #ase at bar, t"e ($n%n aranay, as C"a!r8an %& t"e L$p%n Taapa8ayapa,#%nd$#ted #%n#!'!at!%n pr%#eed!ns t% res%')e t"e d!sp$te bet@een t"e part!es"ere!n. C%ntrary t% pet!t!%ners #%ntent!%n, t"e #%8p'a!nt d%es n%t %n'y a''ee, as a#a$se %& a#t!%n, t"e re&$sa' %& resp%ndents att%rney+!n+&a#t t% !)e "er #%nsent t%t"e !nsta''at!%n %& @ater &a#!'!t!es !n t"e pre8!ses, b$t a's% pet!t!%ners )!%'at!%n %&t"e ter8s %& t"e 'ease, spe#!#a''y t"e!r $se %& a p%rt!%n t"ere!n &%r t"e!rp"%t%#%py!n b$s!ness and t"e!r &a!'$re t% pay t"e !n#reased renta'. As #%rre#t'y&%$nd by t"e RTC3

T"e re#%rds s"%@ t"at #%n&r%ntat!%ns be&%re t"e baranay #"a!r8an @ere "e'd %n Jan$ary 4, -99=, Febr$ary 9, -99=, Febr$ary B, -99=, Febr$ary <, -99=, J$'y =,-99=, A$$st B, -99=, A$$st -7, -99=, A$$st -=, -99= and A$$st >, -99=

@"ere!n n%t %n'y t"e !ss$e %& @ater !nsta''at!%n @as d!s#$ssed b$t a's% t"e ter8s %&t"e 'ease and t"e pr%p%sed ee#$t!%n %& a @r!tten #%ntra#t re'at!)e t"eret%. Itappears, "%@e)er, t"at n% sett'e8ent @as rea#"ed desp!te a t%ta' %& n!ne 8eet!nsat t"e baranay 'e)e'.

It !s %& n% 8%8ent t"at t"e #%8p'a!nt @as !n!t!a''y 8ade by de&endant+appe''antA)e'!na Za8%ra be#a$se "ere!n p'a!nt!+appe''ee @as !)en by t"e San$n!anaranay t"e a$t"%r!ty t% br!n "er r!e)an#e t% t"e C%$rt &%r res%'$t!%n. 1"!'e !t !str$e t"at t"e Sert!6asy%n dated Septe8ber ->, -99= !s ent!t'ed U6%' Sa H!nd!(ab!b!ay N (a"!nt$'%t Sa (apapa6ab!t N T$b!, t"!s t!t'e 8$st n%t pre)a!' %)ert"e a#t$a' !ss$es d!s#$ssed !n t"e pr%#eed!ns.

Hen#e, t% reK$!re an%t"er #%n&r%ntat!%n at t"e baranay 'e)e' as a s!ne K$a n%n &%rt"e '!n %& t"e !nstant #ase @%$'d n%t ser)e any $se&$' p$rp%se any8%re s!n#e n%ne@ !ss$es @%$'d be ra!sed t"ere!n and t"e part!es "a)e pr%)en s% 8any t!8es !nt"e past t"at t"ey #ann%t et t% sett'e t"e!r d!eren#es a8!#ab'y.7

1e #ann%t s$sta!n pet!t!%ners #%ntent!%n t"at t"e L$p%n #%n#!'!at!%n a'%ne, @!t"%$tt"e pr%#eed!n be&%re t"e (an6at n Taapa6as$nd%, #%ntra)enes t"e 'a@ %n2atar$nan (a8baranay. Se#t!%n >-:a; %& R.A. N%. =-47, K$%ted ear'!er, #'ear'ypr%)!des t"at, as a pre#%nd!t!%n t% '!n a #%8p'a!nt !n #%$rt, t"e part!es s"a'' %t"r%$" t"e #%n#!'!at!%n pr%#ess e!t"er be&%re t"e L$p%n C"a!r8an :as @"at"appened !n t"e present #ase;, %r t"e (an6at.

M%re%)er, !n D!$ )s. C%$rt %& Appea's,- @e "e'd t"at n%t@!t"stand!n t"e 8andate!n Se#t!%n >-7:b; %& R.A. N%. =-47 t"at t"e aranay C"a!r8an s"a'' #%nst!t$te a(an6at !& "e &a!'s !n "!s 8ed!at!%n e%rts, t"e sa8e Se#t!%n >-7:b; s"%$'d be#%nstr$ed t%et"er @!t" Se#t!%n >-:a; %& t"e sa8e 'a@ :K$%ted ear'!er;, as @e'' ast"e #!r#$8stan#es %bta!n!n !n and pe#$'!ar t% t"e #ase. Here, @"!'e t"e (an6at@as n%t #%nst!t$ted, "%@e)er, t"e part!es 8et n!ne :9; t!8es at t"e O#e %& t"earanay C"a!r8an &%r #%n#!'!at!%n @"ere!n n%t %n'y t"e !ss$e %& @ater !nsta''at!%n@as d!s#$ssed b$t a's% pet!t!%ners )!%'at!%n %& t"e 'ease #%ntra#t. It !s t"$s 8an!&estt"at t"ere @as s$bstant!a' #%8p'!an#e @!t" t"e 'a@ @"!#" d%es n%t reK$!re str!#tad"eren#e t"eret%.

II

1e "%'d t"at pet!t!%ners 8%t!%n t% d!s8!ss t"e #%8p'a!nt &%r $n'a@&$' deta!ner !spr%s#r!bed by Se#t!%n -9:a; %& t"e -99- Re)!sed R$'e %n S$88ary (r%#ed$re,K$%ted ear'!er. Se#t!%n -9:a; per8!ts t"e '!n %& s$#" p'ead!n %n'y @"en t"er%$nd &%r d!s8!ssa' %& t"e #%8p'a!nt !s an#"%red %n 'a#6 %& $r!sd!#t!%n %)er t"es$be#t 8atter, %r &a!'$re by t"e #%8p'a!nant t% re&er t"e s$be#t 8atter %& "!sG"er#%8p'a!nt t% t"e L$p%n &%r #%n#!'!at!%n pr!%r t% !ts '!n @!t" t"e #%$rt. T"!s !s #'ear&r%8 t"e pr%)!s!%ns %& Se#t!%n -< %& t"e sa8e R$'e, @"!#" reads3

SEC. -<. Re&erra' t% L$p%n. Cases reK$!r!n re&erra' t% t"e L$p%n &%r #%n#!'!at!%n$nder t"e pr%)!s!%ns %& (res!dent!a' De#ree N%. -57< @"ere t"ere !s n% s"%@!n %&#%8p'!an#e @!t" s$#" reK$!re8ent, s"a'' be d!s8!ssed @!t"%$t pre$d!#e, and 8ay bere)!)ed %n'y a&ter s$#" reK$!re8ent s"a'' "a)e been #%8p'!ed @!t". T"!s pr%)!s!%ns"a'' n%t app'y t% #r!8!na' #ases @"ere t"e a##$sed @as arrested @!t"%$t a @arrant.:Unders#%r!n s$pp'!ed;

As d!s#$ssed ear'!er, t"e #ase @as re&erred t% t"e L$p%n C"a!r8an &%r #%n#!'!at!%n.Ob)!%$s'y, pet!t!%ners 8%t!%n t% d!s8!ss, e)en !& a''%@ed, !s bere&t %& 8er!t.

1HEREFORE, t"e pet!t!%n !s DENIED. T"e assa!'ed De#!s!%n and Res%'$t!%n %& t"eC%$rt %& Appea's !n CA+*.R. S( N%. 5>5>- s$sta!n!n t"e De#!s!%n %& t"e RTC @"!#"$p"e'd t"e MTC J$d8ent !s AFFIRMED.

C%sts aa!nst pet!t!%ners.

SO ORDERED.

B

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