siasco

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[G.R. No. 132753. February 15, 1999]

MARIO SIASOCO, ANGELITA E. SIASOCO, MA. ELLA SIASOCO, ESTER

SIASOCO!LAM"G, MA. LO"R#ES SIASOCO LAM"G!ARRIOS, MA. RAMONASIASOCO LAM"G, MA. $ICTORIA SIASOCO LAM"G!#OMING"E%, ELEN

SIASOCO!&OSE, RAFAEL SIASOCO &OSE, C'NT(IA SIASOCO &OSE, CRISTINASIASOCO &OSE, ROERTO SIASOCO &OSE, CARI#A# SIASOCO &OSE, RAMONSIASOCO &OSE, OSCAR SIASOCO, R"EN SIASOCO, SALOME SIASOCO!)A%,

ME#AR#O )A% SIASOCO, ROLAN#O )A% SIASOCO, &ES"S )A% SIASOCO,

NELL' STO. #OMINGO NARIO, MAR' GRACE, STO. #OMINGO NARIO a*+

MAR' ANNE STO. #OMINGO NARIO, petitioners, vs. CO"RT OF A))EALS (ON.MARCELINO F. A"TISTA, &R., )re-+*/ &u+/e, ra*0 215, Re/o*a Tra Cour,

4ueo* Cy a*+ e IGLESIA NI CRISTO, respondents.

# E C I S I O N

)ANGANIAN, J .6

No-a*+*/ e 8*/ o8 a re-o*-:e ea+*/ by o*e +e8e*+a*, e 0o;a* ;ay- be a;e*+e+ o*0e, a- a ;aer o8 r/, by e a*88 * re-e0 o 0a;- a/a*- e

*o*!a*-er*/ +e8e*+a*<-=. Te Cour a-o reerae- a certiorari - *o e roer

re;e+y o 0o*e- a oer 0our>- 8*a a+?u+0ao*, -*0e aea - a:aabe a- are0our-e.

Sae;e* o8 e Ca-e

)eo*er- a--a e February 25, 199@ #e0-o* [1] o8 e Cour o8 Aea-[2] * CA!

GR S) No. 551, e +-o-:e oro* o8 0 rea+-6

B(EREFORE, [e] 8ore/o*/ 0o*-+ere+, e re-e* eo* 8or 0erorar - ereby#ENIE# 8or a0D o8 ;er. Te Te;orary Re-ra**/ Or+er --ue+ by - Cour o*

#e0e;ber 17, 1997 - ereby 8e+. )eo*er- are /:e* - <= +ay- 8ro; re0e o8 -

+e0-o* * 0 o 8e er a*-er. Te ;oo* 8or ora ar/u;e* 8e+ byre-o*+e* - re*+ere+ ;oo. Re-o*+e* 0our - or+ere+ o ro0ee+ a*+ re-o:e e

0a-e +eberae -ee+.[3]

Te 8ore/o*/ +-o-o* a88r;e+ o Or+er- o8 e Re/o*a Tra Cour <RTC= o8

4ueo* Cy, ra*0 215, +ae+ Au/u- 11, 1997 a*+ See;ber 11, 1997 * C: Ca-e

No. 4!97!299H.:

[] Te 8r- Or+er <1= a+;e+ e A;e*+e+ Co;a* <2= +roe+#e8e*+a* Car--a (o;e- #e:eo;e* a*+ )roere-, I*0. <erea8er re8erre+ o a-

BCar--a= 8ro; e Co;a* a*+ <3= +e*e+ e Moo* o #e0are #e8e*+a*- Sa-o0o

et al. <ere* eo*er-= * #e8au. Te -e0o*+ Or+er +e*e+ e Moo* 8or Su-e*-o*

8e+ by +e8e*+a*- a*+ +re0e+ e; o 8e er a*-er o a*88>- A;e*+e+

Co;a*.

"*+au*e+, eo*er- -eeD re0our-e * - Cour.:[5]

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Te Fa0-

)eo*er- ere e re/-ere+ o*er- o8 **e ar0e- o8 a*+ o0ae+ * Mo*aba*,

Ra. I* #e0e;ber 199, ey be/a* o o88er e -ub?e0 roere- 8or -ae.Sub-eue*y, I/e-a * Cr-o <INC= *e/oae+ e eo*er-, bu e are- 8ae+

o a/ree o* e er;- o8 e ur0a-e. More a* a year aer, bo are- re::e+ er+-0u--o*-. I* a eer +ae+ #e0e;ber 1, 199, eo*er- ;a+e a 8*a o88er o e

INC. Te aer>- 0ou*-e -e* a rey re0e:e+ by )eo*er Maro Sa-o0o o* #e0e;ber 2, 199, -a*/ a e o88er a- a00ee+, bu a e INC a- B*o a;e*abe o your

roo-a o a* u*+er:auao* o8 e oa 0o*-+erao*. I* er eer +ae+ &a*uary @,

1997, eo*er- 0a;e+ a e INC a+ *o reay a00ee+ e o88er, a++*/ a, ror o er re0e o8 e a8ore;e*o*e+ rey o* #e0e;ber 2, 199, ey a+ area+y

B0o*ra0e+ Car--a 8or e -ae o8 e -a+ roere- B+ue o e ab-e*0e o8 a*y

re-o*-e o er o88er 8ro; INC.

Ma*a**/ a a -ae a+ bee* 0o*-u;;ae+, INC +e;a*+e+ a e 0orre-o*+*/

+ee+ be ee0ue+ * - 8a:or. )eo*er- re8u-e+. Te e*-u*/ e:e*- ere *arrae+ bye Cour o8 Aea-, a- 8oo-6

BO* &a*uary 1, 1997, r:ae re-o*+e* 8e+ a 0: -u 8or [-]e080 []er8or;a*0e

a*+ [+]a;a/e- a/a*- eo*er- a*+ Car--a (o;e- a*+ #e:eo;e* J )roere-,I*0. +o0Dee+ a- C: Ca-e No. 4!97!299H.

B)eo*er- 8e+ ere* a Moo* o #-;-- o* e /rou*+ o8 ;roer :e*ue a*+ a0D

o8 0aa0y o -ue.

BCar--a (o;e- 8e+ - a*-er o e 0o;a* o* February 2, 1997.

B)e*+*/ re-ouo* o8 eo*er-> Moo* o #-;--, r:ae re-o*+e* *e/oae+ Car--a (o;e- 0 0u;*ae+ * e ur0a-e o8 e -ub?e0 roere- o8 Car--a

(o;e- by r:ae re-o*+e*.

BO* Ar 2, 1997, r:ae re-o*+e* 8e+ a* [A];e*+e+ [C]o;a*, +ro*/Car--a (o;e- a- o*e o8 e +e8e*+a*- a*+ 0a*/*/ e *aure o8 e 0a-e o a ;ere

0a-e 8or +a;a/e-.

B)eo*er- 8e+ a Moo* o SrDe Ou A;e*+e+ Co;a*, 0o*e*+*/ a e

0o;a* 0a**o be a;e*+e+ ou ea:e o8 0our, -*0e a re-o*-:e ea+*/ a-

bee* 8e+.

BO* Au/u- 11, 1997, e 8r- a--ae+ or+er +e*y*/ eo*er-> Moo* o SrDe Ou

A;e*+e+ Co;a* a- re*+ere+.

BO* Au/u- 31, 1997, eo*er- 8e+ a Moo* 8or Su-e*-o* o8 )ro0ee+*/ e*+*/

e re-ouo* [by] e re-o*+e* 0our o8 e Moo* o #-;-- earer 8e+.

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BO* See;ber 11, 1997, e -e0o*+ a--ae+ or+er +e*y*/ eo*er-> Moo* o

Su-e*+ )ro0ee+*/ a- re*+ere+[] e Or+er rea+-6

KFe+ a-o a- See;ber 1, 1997 [a-] a Moo* 8or Su-e*-o* by e +e8e*+a*Sa-o0o ru er 0ou*-e Ay. Cara #u;a*+a*/!S*/. Aou/ e 0our 0ou+ *o

0o*-+er e ;oo* 8e+ be0au-e :oae- e *e rue- o* er-o*a -er:0e, * e*ere- o8 ?u-0e, e 0our re-o:e e ;oo*. I* e re-ouo* o8 - 0our +ae+

Au/u- 11, 1997, -ae[+] a +e8e*+a*- [ere be*/] /:e* a ero+ o8 8:e <5= +ay-* 0 o 8e [a*] a*-er o e A;e*+e+ Co;a*. Te +e8e*+a*- ere

ob:ou-y re8er o e +e8e*+a*- Maro Sa-o0o, e. a. I* e Moo* 8or Su-e*-o* 8e+

by e +e8e*+a*- Sa-o0o, e a., e aer *-- o* e 0our re-o:*/ e ;oo* o+-;--. A- -ae+ * e re-ouo*, e ;oo* o +-;-- - *o ;oo a*+ a0a+e;0

be0au-e o8 e A;e*+e+ Co;a* 8ro; Se080 )er8or;a*0e #a;a/e- o ?u-

#a;a/e-. For - 0our o re-o:e e Moo* o #-;-- e 8r- 0o;a*, ou+ be a* eer0-e * 8uy. Te ;a* 0o;a* *o - +a;a/e- a*+ *o o*/er Se080

)er8or;a*0e +a;a/e- 0 [a-] a0uay a e Re-ouo* +ae+ Au/u- 11,

1997 [a-] a abou. e a a- ;ay, e 0our /:e- +e8e*+a*- Sa-o0o, e a. 88ee*<15= +ay- 8ro; re0e o8 - Or+er o 8e er re-e0:e A*-er- o e A;e*+e+

Co;a*, *o 8ro; e re0e o8 e re-ouo* o8 e Moo* o #-;-- 0 *o

be 8or0o;*/.>

Ru*/ o8 e Cour o8 Aea-

Te Cour o8 Aea- <CA= rue+ a aou/ r:ae re-o*+e* 0ou+ *o o*/er a;e*+- or/*a Co;a* a- a ;aer o8 r/, a- *o re0u+e+ 8ro; +o*/ -o ea:e

o8 0our. Tu-, e CA 0o*0u+e+ a e RTC a+ *o a0e+ /ra:e abu-e o8

+-0reo* * a+;*/ r:ae re-o*+e*>- A;e*+e+ Co;a*.

)eo*er- ar/ue+ a e ra 0our ere e or/*a Co;a* 8or -e080 er8or;a*0e a+ bee* 8e+ a- *o e roer :e*ue. #ebu*D*/ eo*er-> ar/u;e*,

e CA ea*e+ a e RTC *e:eree-- a+ ?ur-+0o* o:er e -a+ Co;a*.

Te CA a-o e+ a e A;e*+e+ Co;a* ++ *o -ub-a*ay aer r:aere-o*+e*>- 0au-e o8 a0o*, -*0e eo*er- ere *o be*/ a-De+ o a*-er a e/a

ob/ao* +88ere* 8ro; a -ae+ * e or/*a Co;a*.

A--/*;e* o8 Error-

I* er Me;ora*+u;, eo*er- -ub;, 8or e 0o*-+erao* o8 - Cour, e

8oo*/ --ue-6

:

[]

BA.

eer or *o e re-o*+e* Cour o8 Aea- /ra:ey erre+ * o+*/ a e

re-o*+e* &u+/e>- a+;--o* o8 INC>- A;e*+e+ Co;a* a- roer.

B.

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eer or *o e re-o*+e* Cour o8 Aea- /ra:ey erre+ * a88r;*/

re-o*+e* &u+/e>- +e*a o8 eo*er-> KMoo* 8or Su-e*-o*.>

BC.

eer or *o e re-o*+e* Cour o8 Aea- /ra:ey erre+ * re8u-*/ o ear eo*er-> a0ao* 8or a e;orary re-ra**/ or+er a*+ r o8 re;*ary

*?u*0o*.

S;y -ae+, e ue-o* -6 ++ e CA err * a88r;*/ e o Or+er- o8 e RTC

0 a+ aoe+ e A;e*+e+ Co;a*

Te Cour>- Ru*/

Te eo* - +e:o+ o8 ;er. e -u-a* e Cour o8 Aea-, bu 8or rea-o*- +88ere*

8ro; o-e /:e* * e a--ae+ #e0-o*.

)re;*ary I--ue6 Propriety of Certiorari

I* er )eo* a*+ Me;ora*+u;, Maro Sa-o0o et al. e;a-e a Be *-a* -ua- 0o;;e*0e+ ur-ua* o Rue 5 o8 e 1997 Rue- o8 )ro0e+ure a*+ ae/e Ba

Re-o*+e* Cour o8 Aea- 0o;;e+ /ra:e abu-e o8 +-0reo* * --u*/ e

0ae*/e+ #e0-o* +ae+ February 25, 199@ . T- - a ro0e+ura error. For e

r o8 certiorari u*+er Rue 5 o --ue, e eo*er ;u- -o *o o*y a e oer0our a0e+ /ra:e abu-e o8 +-0reo*, bu a-o a Bere - *o aea, or a*y oer

a*, -ee+y, a*+ a+euae re;e+y * e or+*ary 0our-e o8 a.:[7] S*0e e

ue-o*e+ CA #e0-o* a- a +-o-o* o* e ;er-, a*+ -*0e -a+ Cour a- *o

re;a**/ --ue o re-o:e, e roer re;e+y a:aabe o eo*er- a- a eo* 8orre:e u*+er Rue 5, *o Rue 5. Furer;ore, a- a /e*era rue, certiorari u*+er Rue

5 0a**o --ue u*e-- e oer 0our, rou/ a ;oo* 8or re0o*-+erao*, a- bee*/:e* a* ooru*y o 0orre0 e ;ue+ error.:[@] Aou/ ere are re0o/*e+

e0eo*- o - rue, eo*er- +o *o 0a; a - 0a-e - o*e o8 e;. For -

ro0e+ura a-e, e *-a* eo* -ou+ be +-;--e+ our/.

No*eee--, *a-;u0 a- e )eo* a- 8e+ * e 15!+ay ero+ ro:+e+ u*+erRue 5, a*+ 0o*-+er*/ e ;ora*0e o8 e --ue ra-e+ a*+ e 8a0 a r:ae

re-o*+e* ++ *o ue-o* e rorey o8 e *-a* )eo*, e Cour reae+ e

a0o* a- a eo* 8or re:e <*o certiorari= u*+er Rue 5 * or+er o a00or+

-ub-a*a ?u-0e o e are-. e u- ro0ee+ o +-0u-- e -ub-a*:e --ue.Ma* I--ue6 Admission of Amended Complaint

)eo*er- ar/ue a e oer 0our- erre+ * a+;*/ e A;e*+e+ Co;a*. "*+er

e Rue-, a Bary ;ay a;e*+ - ea+*/ o*0e a- a ;aer o8 r/ a a*y ;e be8ore a

re-o*-:e ea+*/ - -er:e+ .[9] e* r:ae re-o*+e* 8e+ - A;e*+e+Co;a*, Car--a, e oer ary!+e8e*+a* * e or/*a Co;a*, a+ area+y

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8e+ - A*-er. e0au-e a re-o*-:e ea+*/ a+ bee* -ub;e+, eo*er- 0o*e*+

a r:ae re-o*+e* -ou+ a:e 8r- oba*e+ ea:e o8 0our be8ore 8*/ -

A;e*+e+ Co;a*. T- 8ae+ o +o. I* a*y e:e*, -u0 ea:e 0ou+ *o a:e bee*/ra*e+, ae/e+y be0au-e e a;e*+;e* a+ -ub-a*ay aere+ e 0au-e o8 a0o*.

T- ar/u;e* - *o er-ua-:e. I - 0ear a a*88 <ere* r:ae re-o*+e*= 0a*a;e*+ - 0o;a* o*0e, a- a ;aer o8 r/, be8ore a re-o*-:e ea+*/ - 8e+.[1H]

Co*rary o e eo*er-> 0o*e*o*, e 8a0 a Car--a a+ area+y 8e+ - A*-er++ *o bar r:ae re-o*+e* 8ro; a;e*+*/ - or/*a Co;a* o*0e, a- a ;aer o8

r/, against herein petitioners. I*+ee+, ere -o;e bu *o a e +e8e*+a*- a:e

a*-ere+, a*88- ;ay a;e*+ er Co;a* o*0e, a- a ;aer o8 r/, * re-e0 o0a;- a--ere+ -oey a/a*- e *o*!a*-er*/ +e8e*+a*-, bu *o a- o 0a;- a--ere+

a/a*- e oer +e8e*+a*-.[11]

Te rao*ae 8or e a8ore;e*o*e+ rue - * Se0o* 3, Rue 1H o8 e Rue- o8 Cour,

0 ro:+e- a a8er a re-o*-:e ea+*/ a- bee* 8e+, a* a;e*+;e* ;ay be

re?e0e+ e* e +e8e*-e - -ub-a*ay aere+.

[12] Su0 a;e*+;e* +oe- *o o*y re?u+0e e r/- o8 e +e8e*+a* a-o +eay- e a0o*. I* e 8r- a0e, ere a

ary a- *o ye 8e+ a re-o*-:e ea+*/, ere are *o +e8e*-e- a 0a* be aere+.Furer;ore, e Cour a- e+ a B[a];e*+;e*- o ea+*/- are /e*eray 8a:ore+

a*+ -ou+ be beray aoe+ * 8urera*0e o8 ?u-0e * or+er a e:ery 0a-e ;ay -o

8ar a- o--be be +eer;*e+ o* - rea 8a0- a*+ * or+er o -ee+ e ra o8 0a-e- or re:e* e 0r0uy o8 a0o* a*+ u**e0e--ary ee*-e, u*e-- ere are 0r0u;-a*0e-

-u0 a- *e0u-abe +eay or e aD*/ o8 e a+:er-e ary by -urr-e or e De, 0

;/ ?u-8y a re8u-a o8 er;--o* o a;e*+.[13]

I* e re-e* 0a-e, eo*er- 8ae+ o ro:e a ey ere re?u+0e+ by r:ae

re-o*+e*>- A;e*+e+ Co;a*. True, Car--a a+ area+y 8e+ - o* A*-er.)eo*er-, oe:er, a:e *o ye 8e+ a*y. Moreo:er, ey +o *o ae/e a er

+e8e*-e - -;ar o a o8 Car--a. O* e 0o*rary, r:ae re-o*+e*>- 0a;- a/a*-e aer a*+ a/a*- eo*er- are +88ere*. A/a*- eo*er-, o-e o88er o -e e

-ub?e0 ar0e- o8 a*+ a+ ae/e+y bee* a00ee+ by r:ae re-o*+e*, e aer -

-u*/ 8or -e080 er8or;a*0e a*+ +a;a/e- 8or brea0 o8 0o*ra0. Aou/ r:ae

re-o*+e* 0ou+ *o o*/er a;e*+, a- a ;aer o8 r/, - Co;a* a/a*- Car--a, 0ou+ +o -o a/a*- eo*er- o, a e ;e, a+ *o ye 8e+ a* a*-er.

Te a;e*+;e* ++ *o re?u+0e e eo*er- or +eay e a0o*. Au contraire,

-;8e+ e 0a-e a*+ e*+e+ o ee+e - +-o-o*. Te A;e*+e+ Co;a*

be0a;e -;y a* a0o* 8or +a;a/e-, -*0e e 0a;- 8or -e080 er8or;a*0e a*++e0arao* o8 *uy o8 e -ae a:e bee* +eee+.

RTC Had Jurisdiction

)eo*er- a-o *-- a e RTC o8 4ueo* Cy ++ *o a:e ?ur-+0o* o:er e

or/*a Co;a* e*0e, ++ *o a:e a*y auory o ao e a;e*+;e*. Tey;a*a* a e or/*a a0o* 8or -e080 er8or;a*0e *:o:*/ ar0e- o8 a*+ *

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Mo*aba*, Ra -ou+ a:e bee* 8e+ * e RTC o8 a area. Tu-, ey 0+e e

CA 8or ae/e+y ;-u*+er-a*+*/ e +-*0o* beee* territorial jurisdiction a*+

venue, ereby erro*eou-y o+*/ a e RTC a+ jurisdiction o:er e or/*aCo;a*, aou/ e venue a- ;roery a+.

e +-a/ree. True, a* a;e*+;e* 0a**o be aoe+ e* e 0our a- *o ?ur-+0o*o:er e or/*a Co;a* and e uro-e o8 e a;e*+;e* - o 0o*8er ?ur-+0o* o*

e 0our.:[1] I* e re-e* 0a-e, oe:er, e RTC a+ ?ur-+0o* be0au-e eor/*a Co;a* *:o:e+ -e080 er8or;a*0e +a;a/e-. I* La Tondea

!istillers v. Ponferrada,:[15] - Cour rue+ a a 0o;a* 8or B-e080 er8or;a*0e

+a;a/e- - a er-o*a a0o* a*+ ;ay be 8e+ * e roer 0our ere a*y o8 e are- re-+e, vi" .6

BF*ay, []e are *o a-o er-ua+e+ by eo*er>- ar/u;e* a :e*ue -ou+ be

o+/e+ * a/o Cy ere e o - -uae+. Te 0o;a* - o*e 8or B-e080

er8or;a*0e +a;a/e-. )r:ae re-o*+e*- +o *o 0a; o*er- o8 e o bu *

8a0 [re0o/*e e] e o8 +e8e*+a*- by a**oa*/ a *o0e o8 lis pendens. I* o*e 0a-e,a -;ar 0o;a* 8or B-e080 er8or;a*0e +a;a/e- *:o:*/ rea roery, a-

e+ o be a er-o*a a0o*, 0 ;ay be 8e+ * e roer 0our ere e aryre-+e-. No be*/ a* a0o* *:o:*/ e o or o*er- o8 rea roery, :e*ue, *

- 0a-e, a- *o ;roery a+ be8ore e RTC o8 a0oo+ Cy.:[1]

WHEREFORE, e )eo* - ereby !#$%#!. Co-- a/a*- eo*er-.

SO OR#ERE#.

Ro;ero <Car;a*=, $u/, )ur-;a, a*+ Go*a/a!Reye-, &&., 0o*0ur.

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i

RAFAEL BAUTISTA and LIGAYA ROSEL,

Petitioners,

- versus -

MAYA-MAYA COTTAGES, INC,

Res!ondent

GR No "#$%&"

Present'

PANGANIBAN, J., C(air)an,

SAN*O+AL-GUTIERRE,

CORONA,

CARPIO MORALES, and

GARCIA, JJ

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Pro)u.ated'

Nove)/er 01,0223 4------------------------------------------------------------------------------------------------4

R E S O L U T I O N

SAN*O+AL GUTIERRE, J '

For our resoution is t(e instant !etition 5or revie6 on certiorari assaiin. t(e *e7ision8"9

and Resoution o5 t(e Court o5 A!!eas, dated Nove)/er 0#, 0222 and Ma: %2, 022",

res!e7tive:, in CA-GR SP No #%3;#

T(e 5a7ts are'

S!ouses Ra5ae and Li.a:a Bautista, !etitioners (erein, are t(e re.istered o6ners o5 a

%,$3&-s<uare )eter ot o7ated at Nati!uan, Nasu./u, Batan.as, as eviden7ed /: Ori.ina

Certi5i7ate o5 Tite =OCT> No P-"#%& issued in t(eir na)es on ?anuar: "3, "1$1 /: t(e

Re.ister o5 *eeds, sa)e !rovin7e

http://sc.judiciary.gov.ph/jurisprudence/2005/nov2005/148361.htm#_ftn1


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On Ma: "%, "11&, Ma:a-Ma:a Cotta.es, In7 =MMCI>, res!ondent, 5ied 6it( t(e

Re.iona Tria Court =RTC> o5 Nasu./u, Batan.as a 7o)!aint 5or 7an7eation o5 !etitioners@

tite and da)a.es, 6it( a!!i7ation 5or a !rei)inar: inun7tion, do7eted as Civi Case No

%;" Res!ondent ae.ed inter alia t(at 6it(out an: 7oor o5 ri.(t and t(rou.( du/ious

)eans,D !etitioners 6ere a/e to o/tain OCT No P-"#%& in t(eir na)es

On Ma: 01, "11&, !etitioners 5ied a )otion to dis)iss t(e 7o)!aint on t(e .round t(at

it does not state a 7ause o5 a7tion T(e: averred t(at res!ondent is a !rivate 7or!oration,

(en7e, dis<uai5ied under t(e Constitution809 5ro) a7<uirin. !u/i7 aiena/e ands e47e!t /:

ease Res!ondent 7annot t(us /e 7onsidered a rea !art: in interest

In its Order dated Au.ust %2, "11&, t(e tria 7ourt .ranted t(e )otion to dis)iss, (odin.

t(at sin7e t(e !ro!ert: is an aiena/e !u/i7 and, res!ondent is not <uai5ied to a7<uire it

e47e!t /: ease T(us, it (as no 7ause o5 a7tion

Res!ondent t(en 5ied a )otion 5or re7onsideration 6it( )otion 5or eave to 5ie an

a)ended 7o)!aint 5or <uietin. o5 tite Res!ondent ae.ed t(at t(e te7(ni7a des7ri!tion in

!etitioners@ tite does not 7over t(e dis!uted ot

T(ereu!on, !etitioners 5ied t(eir o!!osition, 7ontendin. t(at t(e a)ended 7o)!aint

does not aso state a 7ause o5 a7tion and i5 ad)itted, res!ondent@s t(eor: o5 t(e 7ase is

su/stantia: )odi5ied

On Nove)/er "$, "11&, t(e tria 7ourt issued an Order den:in. !etitioners@ )otion to

dis)iss, t(us, reversin. its Order o5 Au.ust %2, "11& dis)issin. t(e 7o)!aint in Civi Case

No %;"



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Petitioners t(en 5ied 6it( t(e Court o5 A!!eas a s!e7ia 7ivi a7tion 5or certiorari and

!ro(i/ition, do7eted as CA-GR SP No #%3;# T(e: ae.ed t(at t(e a)ended 7o)!aint

does not 7ure t(e de5e7t in t(e ori.ina 7o)!aint 6(i7( does not state a 7ause o5 a7tion

Cear:, in ad)ittin. res!ondent@s a)ended 7o)!aint, t(e tria 7ourt 7o))itted .rave a/use

o5 dis7retion a)ountin. to a7 or e47ess o5 urisdi7tion

On Nove)/er 0#, 0222, t(e Court o5 A!!eas rendered a *e7ision dis)issin. t(e

!etition 5or certiorari and !ro(i/ition

Petitioners 5ied a )otion 5or re7onsideration /ut 6as denied /: t(e A!!eate Court in

its Resoution o5 Ma: %2, 022"

en7e, t(e instant !etitioner 5or revie6 on certiorari

T(e soe issue 5or our resoution is 6(et(er t(e Court o5 A!!eas erred in (odin. t(at

t(e tria 7ourt did not 7o))it .rave a/use o5 dis7retion a)ountin. to a7 or e47ess o5

urisdi7tion in ad)ittin. res!ondent@s a)ended 7o)!aint

Se7tion 0, Rue "2 o5 t(e "11; Rues o5 Civi Pro7edure, as a)ended, !rovides'

SEC 0 Amendments as a matter of right A !art: )a: a)end (is!eadin. on7e as a matter of right at any time before a responsive pleadingis served or, in t(e 7ase o5 a re!:, at an: ti)e 6it(in ten ="2> da:s a5ter it isservedD

T(e a/ove !rovision 7ear: s(o6s t(at before the filing of any responsive pleading,

a !art: (as t(e absolute right to a)end (is !eadin., re.ardess o5 6(et(er a ne6 7ause o5

a7tion or 7(an.e in t(eor: is introdu7ed It is setted t(at a )otion to dis)iss is not t(e

res!onsive !eadin. 7onte)!ated /: t(e Rue8%9 Re7ords s(o6 t(at !etitioners (ad not :et



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5ied a res!onsive !eadin. to t(e ori.ina 7o)!aint in Civi Case No %;" (at t(e: 5ied

6as a )otion to dis)iss It 5oo6s t(at res!ondent, as a !ainti55, )a: 5ie an a)ended

7o)!aint even a5ter t(e ori.ina 7o)!aint 6as ordered dis)issed, !rovided t(at t(e order o5

dis)issa is not :et 5ina,8#9 as in t(is 7ase

+eri:, t(e Court o5 A!!eas 7orre7t: (ed t(at in issuin. t(e assaied Order ad)ittin.

t(e a)ended 7o)!aint, t(e tria 7ourt did not .rave: a/use its dis7retion en7e, neit(er

certiorari nor !ro(i/ition 6oud ie

As to !etitioners@ 7ontention t(at res!ondent 7or!oration is /arred 5ro) a7<uirin. t(e

su/e7t ot, su55i7e it to sa: t(at t(is is a )atter o5 de5ense 6(i7( 7an on: /e !ro!er:

deter)ined durin. t(e 5u-/o6n tria o5 t(e instant 7ase

WHEREFORE, t(e !etition is DENIED. T(e 7(aen.ed *e7ision and Resoution o5 t(e

Court o5 A!!eas in CA-GR SP No #%3;# are FFIR!ED IN TOTO Costs a.ainst

!etitioners

"O ORDERED.

#.R. No. $%&'()* !ar+h -, )*

#I/O!IN !RINI%#ON0$E", !etitioner,vsHON. #1RD"ON R. $OOD, 2residing 3udge, /ourt of First Instan+e of Ri4al, "i5th6ran+h 2asig, Ri4al7 /E$I N#E$E"%2"/17 E$I"EO 0RI, ssistant /ler8 of /ourtof above%mentioned bran+h, as appointed legal representative of de+eased defendantRFE$ 3. #ON0$E"7 E"9E6N ". N#E$E"7 "2O1"E" RO#E$IO N#E$E" and"INFORE" "$:DOR N#E$E"7 "2O1"E" RE!EDIO" N#E$E"%FERRER andF$OREN/IO FERRER7 3I!E N#E$E"7 "2O1"E" 6EN3!IN N#E$E" and!ER$IN 9ORRE"%/6E and her husband surnamed /6E ;first name un8no<n to



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petitioner=, res!ondents

Norberto J. Quisumbing for petitioner.

Laso Beltran & Domondon for respondents.

2DI$$, J.:

T(is is a !etition 5or 7ertiorari to annu and set aside t(e orders issued /: t(e res!ondent?ud.e in Civi Case No "001& o5 t(e t(en Court o5 First Instan7e o5 RiHa, Pasi. Bran7( +I,on ="> "0 Fe/ruar: "1;0, 6(i7( denied !etitioners O)ni/us MotionJ =0> 03 Mar7( "1;0,a!!ointin. t(e res!ondent Eiseo ari, assistant 7er o5 7ourt o5 res!ondent 7ourt, as t(ee.a re!resentative o5 t(e de7eased de5endant Ra5ae ? GonHaesJ =%> "# A!ri "1;0, 6(i7(denied !etitioners )otion 5or re7onsideration o5 t(e Order dated "0 Fe/ruar: "1;0J and =#>

"; Ma: "1;0, 6(i7( denied !etitioners )otion 5or re7onsideration o5 t(e Order dated 03Mar7( "1;0

T(e re7ords s(o6 t(at on "1 Se!te)/er "1&1, t(e (erein !etitioner, Gia7o)ina Marini-GonHaes, no6-de7eased and re!resented /: t(e s!e7ia ad)inistrator o5 (er estate, Att:Nor/erto ? Kuisu)/in., 5ied a 7o)!aint a.ainst (er (us/and Ra5ae ? GonHaes andCeia An.ees-Pas7ua, Este/an S An.ees, Ro.eio S An.ees, Sin5oresa Savador- An.ees,Re)edios An.ees-Ferraer, Foren7io Ferraer, ?ai)e An.ees, Bena)in An.ees, MerinaTorres-An.ees, and Lourdes An.ees-A7a/e and (er (us/and 6(ose 5irst na)e is unno6nto t(e !ainti55, in t(e t(en Court o5 First Instan7e o5 RiHa, do7eted as Civi Case no "001&,5or t(e annu)ent o5 ae.ed: 5rauduent dis!osition i5 various !ro!erties, /ot( rea and!ersona, t(erein isted, )ade /: t(e said Ra5ae ? GonHaes in 5avor o5 (is 7o- de5endants,ae.ed: in 5raud o5 !ainti55 and in i)!air)ent o5 (er interest in t(e 7onu.a !artners(i!!ro!erties, and 6it(out (er no6ed.e and 7onsent T(e 7o)!aint aso ased 5or da)a.es >

In ans6er, t(e de5endant Ra5ae ? GonHaes 7ai)ed t(at a t(e 7onu.a assets 6(i7( are in(is !ossession 6ere not used in an: 6a: 5or or trans5erred to t(e ot(er de5endantsJ and t(att(e !ro!erties o6ned /: (is 7o-de5endants 6ere not derived 5ro) t(e 7onu.a !ro!ertieso6ned /: (i) and t(e !ainti55 &

is 7o-de5endants, 5or t(eir !art, ae.ed t(at t(e !ro!erties isted in t(e 7o)!aint 6ere/ou.(t or a7<uired, not 6it( 5unds 5ro) t(e 7onu.a !artners(i! o5 !ainti55 and de5endantRa5ae ? GonHaes, /ut 6it( 5unds o5 t(e o6ners t(ereo5 ?

Pre-tria 7on5eren7es 6ere (ed, and t(erea5ter, t(e de!osition o5 t(e de5endant Ra5ae ?GonHaes 6as taen in vie6 o5 (is deterioratin. (eat( T(e tain. o5 (is de!osition, (o6ever,6as not 7o)!eted /e7ause (e died on 3 Se!te)/er "1;2

On 03 Se!te)/er "1;2, t(e (erein !etitioner, in a !eadin. entited Noti7e o5 *eat( o5 Part:and O)ni/us Motion noti5ied t(e 7ourt o5 t(e deat( o5 t(e de5endant Ra5ae ? GonHaes ando5 (er a!!oint)ent /: t(e t(en Court o5 First Instan7e o5 RiHa =KueHon Cit: /ran7(> inS!e7ia Pro7eedin. No K-"#$%$ as s!e7ia ad)inistratri4 o5 (is testate estate, and !ra:ed

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t(at s(e /e su/stituted in !a7e o5 t(e de7easedJ t(at t(e !eadin.s, )otions and !a!ers,in7udin. t(e Ans6er 6it( Counter7ai) 5ied /: t(e de7edent, /e 6it(dra6n and stri7en outJand t(at s(e /e .ranted eave to a)end (er o6n 7o)!aint so as to ae.e t(erein (er t6o7a!a7ities and ri.(ts one, as 6i5e and t6o, as s!e7ia ad)inistratri4 o5 t(e testate estate o5 t(e ate Ra5ae ? GonHaes ' Later, t(e !ro/ate 7ourt a!!ointed said !ainti55 =(erein

!etitioner> as e4e7utri4 in t(e testate estate o5 t(e ate Ra5ae ? GonHaes

-

S(e is aso t(esoe (eir under (is 6i

Considerin. t(e O)ni/us Motion, res!ondent ?ud.e ordered t(e !arties to su/)it t(eir a)ended !eadin. in a77ordan7e 6it( t(e Rues o5 Court 6it(in a !eriod or as soon as!ossi/e *

Pursuant t(ereto, t(e !etitioner 5ied a Co)!ian7e and Motion reiteratin. (er !ra:er 5or t(ei))ediate .rant o5 (er O)ni/us Motion 5ied earier A 7o!: o5 an A)ended Co)!aint 6asa!!ended to (er )otion )

T(e res!ondent ?ud.e, (o6ever, in an Order dated "0 Fe/ruar: "1;0, denied t(e O)ni/usMotion 5or a7 o5 )erit ( Counse 5or t(e !etitioner re7eived a 7o!: o5 t(e Order on 0&Fe/ruar: "1;0, and on 03 Mar7( "1;0, (e 5ied a )otion 5or re7onsideration o5 said Order

On t(at sa)e da:, 03 Mar7( "1;0, t(e res!ondent ?ud.e, u!on )otion o5 t(e (erein !rivateres!ondents, issued an Order a!!ointin. Att: Eiseo ari, t(e assistant 7er o5 7ourt, t(ee.a re!resentative o5 t(e de5endant Ra5ae ? GonHaes in t(e 7ase > U!on re7ei!t o5 a7o!: o5 t(is Order, 7ounse 5or t(e !etitioner aso 5ied a )otion 5or its re7onsideration, and6(en /ot( )otions 5or re7onsideration 6ere denied on "# A!ri "1;0 & and "; Ma: "1;0, ?res!e7tive:, (e 5ied t(e instant !etition 5or 7ertiorari 6it( t(is Court

T(e !etition 6as .iven due 7ourse ' and on 02 Mar7( "1;%, t(is 7ourt, u!on a!!i7ation o5 t(e !etitioner, issued a te)!orar: restrainin. order restrainin. t(e res!ondent ?ud.e 5ro)!ro7eedin. 6it( t(e initia re7e!tion o5 eviden7e in Civi Case No "001; o5 t(e Court o5 FirstInstan7e o5 RiHa, Bran7( +I, Pasi. -

T(e 5irst issue raised /: t(e !etitioner is 6(et(er or not t(e res!ondent ?ud.e a7ted 6it(.rave a/use o5 dis7retion in den:in. t(e !ro!osed a)end)ent to t(e !etitioners 7o)!aint tot(e end t(at s(e, as s!e7ia ad)inistratri4, ater, e4e7utri4 o5 t(e testate estate o5 (er ate(us/and Ra5ae ? GonHaes, /e ao6ed to 6it(dra6 t(e Ans6er 6it( Counter7ai) 5ied /:said de7eased durin. (is i5eti)e and t(en oin 7ause 6it( (er, as !ainti55

T(e a6 a!!i7a/e is Se7tion ", Rue "2 o5 t(e Rues o5 Court 6(i7( !rovides as 5oo6s'

Se7 % Amendments by leave of Court A5ter t(e 7ase is set 5or (earin.,su/stantia a)end)ents )a: /e )ade on: u!on eave o5 7ourt But su7( eave)a: /e re5used i5 it a!!ears to t(e 7ourt t(at t(e )otion 6as )ade 6it( intent todea: t(e a7tion or t(at t(e 7ause o5 a7tion or de5ense is su/stantia: ateredOrders o5 t(e 7ourt u!on t(e )atters !rovided in t(is se7tion s(a /e )adeu!on )otion 5ied in 7ourt, And a5ter noti7e to t(e adverse !art:, and ano!!ortunit: to /e (eard

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Lie6ise a!!i7a/e is t(e a6 on esto!!e to t(e e55e7t t(at

A !art: 6(o (as, 6it( no6ed.e o5 t(e 5a7ts, assu)ed a !arti7uar !osition in udi7ia !ro7eedin.s, and (as su77eeded in )aintainin. t(at !osition, isesto!!ed to assu)e a !osition in7onsistent t(ere6it( to t(e !reudi7e o5 t(e

adverse !art: It is essentia aso t(at t(e !art:, 7ai)in. t(e esto!!e s(oud(ave a7ted in reian7e t(ereon, and t(at (is ri.(ts 6oud /e inurious: a55e7ted i5 (is o!!onent 6ere !er)itted to 7(an.e (is !osition (en no 6ron. is done a7(an.e in !osition s(oud and 6i /e ao6ed T(e rue (as no a!!i7ation 6(eret(e no6ed.e or )eans o5 no6ed.e o5 /ot( !arties is e<ua nor in 7ase o5 )istae Aso t(e rue (as no a!!i7ation to 7(an.e a !osition 6it( res!e7t to)atters o5 a6

T(ere is no dou/t t(at t(e !ro!osed a)end)ents to t(e !etitioners 7o)!aint 6oud ater t(e!osition o5 Ra5ae ? GonHaes, 5ro) t(at o5 de5endant to t(at o5 !ainti55 But, 6(ie t(ea5ore<uoted !rovisions o5 t(e Rues o5 Court aut(oriHe t(e 7ourts to disao6 a)end)ent o5

!eadin.s 6(en it a!!ears t(at t(e sa)e is )ade to dea: an a7tion or t(at t(e 7ause o5 a7tion or de5ense is su/stantia: atered t(ere/: t(e rue is not a/soute Courts are not!re7uded 5ro) ao6in. a)end)ents o5 !eadin.s even i5 t(e sa)e 6i su/stantia: 7(an.et(e 7ause o5 a7tion or de5ense !rovided t(at su7( a)end)ents do not resut in a su/stantiainur: to t(e adverse !art: T(is is due to t(e !er)issive 7(ara7ter o5 said rue In 5a7t, t(isCourt (as rued t(at a)end)ents to !eadin.s are 5avored and s(oud /e i/era: ao6ed int(e 5urt(eran7e o5 usti7e *

T(e sa)e is true 6it( t(e !rin7i!e o5 esto!!e, ust )entioned It is essentia t(at t(e ri.(ts o5 t(e adverse !art: 6oud /e serious: a55e7ted in order to disao6 a 7(an.e in !osition, /ut,6(en no 6ron. is done, a 7(an.e in !osition )a: /e ao6ed

e (ave e4a)ined t(e re7ords o5 t(is 7ase and 6e 5ind no reason, nor (ave t(e !rivateres!ondents s(o6n an:, 6(i7( 6oud serve as a /asis 5or a 5indin. t(at t(e: =!rivateres!ondents> 6oud su55er su/stantia inur: i5 t(e !ro!osed a)end)ents 6ere ao6ed T(e)ere 7(an.e in t(e !osition o5 t(e de7eased Ra5ae ? GonHaes, 5ro) de5endant to !ainti55,6i not, /: itse5, end 7reden7e to t(e ae.ation o5 t(e !etitioner in (er 7o)!aint t(at t(e!ro!erties isted in t(e 7o)!aint /eon.ed to t(e 7onu.a !artners(i! o5 t(e !etitioner andRa5ae ? GonHaes and t(at t(e: 6ere 5rauduent: trans5erred to t(e !rivate res!ondents, nor 6i it di)inis( t(e !rivate res!ondents 7ai) t(at t(e said !ro!erties 6ere /ou.(t or a7<uired/: t(e) 6it( t(eir o6n 5unds T(e !arties, in 5a7t, (ave :et to !rove t(eir res!e7tiveae.ations

On t(e ot(er (and, to disao6 t(e a)end)ents !ro!osed /: t(e !etitioner 6oud resut inso)e a/surdit: As 6i5e and t(en as e4e7utri4 and soe (eir o5 t(e ate Ra5ae ? GonHaes,t(e !etitioner 6oud /e .ivin. 6it( one (and and aso re7eivin. 6it( t(e ot(er in t(e eventt(at ud.)ent 6ere to /e rendered 5or or a.ainst t(e de7eased de5endant

T(e ot(er issue raised is 6(et(er or not t(e res!ondent ?ud.e a/used (is dis7retion inorderin. t(e res!ondent Eiseo ari to re!resent t(e de7eased Ra5ae ? GonHaes as !art:de5endant in t(is 7ase T(e !etitioner 7ontends t(at t(e a!!oint)ent o5 anot(er e.are!resentative 5or t(e ate Ra5ae ? GonHaes is nun and void in vie6 o5 (er a!!oint)ent as

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t(e s!e7ia ad)inistratri4, ater, e4e7utri4 o5 t(e testate estate o5 Ra5ae ? GonHaes, not to)ention t(at s(e is t(e soe (eir under (is 6i )

e a.ree 6it( !etitioners 7ontention Under t(e !rovisions o5 Se7tion 0, Rue $; o5 t(e Rueso5 Court, it is t(e e4e7utor or ad)inistrator o5 t(e estate o5 t(e de7edent 6(o )a: /rin. or

de5end a7tions in t(e na)e o5 t(e de7eased, and tis Court (as rued t(at t(e 7(oi7e o5 ane4e7utor is t(e soe !rero.ative o5 t(e testator and is not address to t(e dis7retion o5 t(e7ourt In t(e 7ase o5 !aeta vs. "ecson, >( t(is Court said'

T(e 7(oi7e o5 (is e4e7utor is a !re7ious !rero.ative o5 a testator, a ne7essar:7on7o)itant o5 (is ri.(t to dis!ose o5 (is !ro!ert: in t(e )anner (e 6is(es It isnatura t(at t(e testator s(oud desire to a!!oint one o5 (is 7on5iden7e, one 6(o7an /e trusted to 7arr: out (is 6is(es in t(e dis!osa o5 (is estate T(e7urtai)ent o5 t(is ri.(t )a: /e 7onsidered as a 7urtai)ent o5 t(e ri.(ts todis!ose And as t(e ri.(ts .ranted /: (i) 6i tae e55e7t 5ro) t(e ti)e o5 (isdeat( =Arti7e ;;;, Civi Code o5 t(e P(ii!!ines>, t(e )ana.e)ent o5 (is estate

/: t(e ad)inistrator o5 (is 7(oi7e s(oud /e )ade as soon as !ra7ti7a/e, 6(enno reasona/e o/e7tion to (is assu)!tion o5 t(e trust 7an /e inter!osed an:on.er It (as /een (ed t(at 6(en a 6i (as /een ad)itted to !ro/ate, it is t(edut: o5 t(is 7ourt to issue etters testa)entar: to t(e !erson na)ed as e4e7utor u!on (is a!!i7ation =0% C? "20%> It is t(e testator t(at a!!oints (is e4e7utor,as t(e <uestion as to (is !e7uiar 5itness 5or su7( !osition or (is 6ant o5 a/iit: to)ana.e t(e estate 7annot /e addressed to t(e dis7retion o5 t(e 7ount: ud.e=o/roo vs ead, & S 310, 31%, 1 : ;33>

Furt(er)ore, t(e oinder o5 t(e de7eased Ra5ae ? GonHaes as !art: de5endant is no on.er ne7essar: and )a: /e dis!ensed 6it(, sin7e no 7ross-7ai) (as /een 5ied a.ainst (i) /: (is7o-de5endants =!rivate res!ondents (erein>J and t(e !etitioners ri.(t under Arti7e ";% o5 t(eCivi Code )a: /e en5or7ed a.ainst t(ird !ersons even 6it(out oinin. (er (us/and as !art:de5endant

e 5ind 5ro) an t(e 5ore.oin., and so rue, t(at t(e res!ondent ?ud.e .rave: a/used (isdis7retion in den:in. t(e !etitioners O)ni/us Motion Courts s(oud /e i/era in ao6in.a)end)ents to !eadin.s, es!e7ia: 6(ere su7( a)end)ents 6i serve t(e ends o5 usti7eand avoid )uti!it: o5 suits

EREFORE, t(e !etition is GRANTE* and a 6rit issued, annuin. and settin. aside t(eOrders issued /: t(e res!ondent ?ud.e in Civi Case no "001& o5 t(e t(en Court o5 FirstInstan7e o5 RiHa Bran7( +I, Pasi., on "0 Fe/ruar: "1;0, 03 Mar7( "1;0, "# A!ri "1;0, and"; Ma: "1;0 T(e te)!orar: restrainin. order, earier issued /: t(is Court, is (ere/: )ade!er)anent Costs a.ainst !rivate res!ondents

SO OR*ERE*

#ernan $Chairman% 'utierre! Jr. "aras Bidin and Cortes JJ. concur.

Alampay J. too( no part.

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iiiiiivvvi

viiviiii4SAGMAN OTELS AN* TRA+EL, INC, petitioner vs. ON COURT OF APPEALS, andNEAL B CRISTIAN, respondents

* E C I S I O N

*A+I*E, ?R, C J.'

Ma: a 7o)!aint t(at a7s a 7ause o5 a7tion at t(e ti)e it 6as 5ied /e 7ured /: t(e a77rua o5

a 7ause o5 a7tion durin. t(e !enden7: o5 t(e 7ase T(is is t(e /asi7 issue raised in t(is!etition 5or t(e Court@s 7onsideration

So)eti)e in "11& and "11;, !etitioner S6a.)an otes and Trave, In7, t(rou.( Att:Leonor L In5ante and Rodne: *avid e.ert:, its !resident and vi7e-!resident, res!e7tive:,o/tained 5ro) !rivate res!ondent Nea B C(ristian oans eviden7ed /: t(ree !ro)issor:notes dated ; Au.ust "11&, "# Mar7( "11;, and "# ?u: "11; Ea7( o5 t(e !ro)issor: notesis in t(e a)ount o5 US32,222 !a:a/e a5ter t(ree :ears 5ro) its date 6it( an interest o5 "3Q!er annu) !a:a/e ever: t(ree )ont(s8"9 In a etter dated "& *e7e)/er "11$, C(ristianin5or)ed t(e !etitioner 7or!oration t(at (e 6as ter)inatin. t(e oans and de)anded 5ro) t(eatter !a:)ent in t(e tota a)ount o5 US"32,222 !us un!aid interests in t(e tota a)ount o5 US"%,322809

On 0 Fe/ruar: "111, !rivate res!ondent C(ristian 5ied 6it( t(e Re.iona Tria Court o5 Ba.uioCit:, Bran7( 31, a 7o)!aint 5or a su) o5 )one: and da)a.es a.ainst t(e !etitioner 7or!oration, e.ert:, and Att: In5ante T(e 7o)!aint ae.ed as 5oo6s' On ; Au.ust "11&,"# Mar7( "11;, and "# ?u: "11;, t(e !etitioner, as 6e as its !resident and vi7e-!residento/tained oans 5ro) (i) in t(e tota a)ount o5 US"32,222 !a:a/e a5ter t(ree :ears, 6it( aninterest o5 "3Q !er annu) !a:a/e <uarter: or ever: t(ree )ont(s For a 6(ie, t(e: !aid aninterest o5 "3Q !er annu) ever: t(ree )ont(s in a77ordan7e 6it( t(e t(ree !ro)issor:notes o6ever, startin. ?anuar: "11$ unti *e7e)/er "11$, t(e: !aid (i) on: an interest o5 &Q !er annu), instead o5 "3Q !er annu), in vioation o5 t(e ter)s o5 t(e t(ree !ro)issor:notes T(us, C(ristian !ra:ed t(at t(e tria 7ourt order t(e) to !a: (i) oint: and soidari:t(e a)ount o5 US"32,222 re!resentin. t(e tota a)ount o5 t(e oansJ US"%,322re!resentin. un!aid interests 5ro) ?anuar: "11$ unti *e7e)/er "11$J P"22,222 5or )orada)a.esJ P32,222 5or attorne:@s 5eesJ and t(e 7ost o5 t(e suit8%9

T(e !etitioner 7or!oration, to.et(er 6it( its !resident and vi7e-!resident, 5ied an Ans6er raisin. as de5enses a7 o5 7ause o5 a7tion and novation o5 t(e !rin7i!a o/i.ations

A77ordin. to t(e), C(ristian (ad no 7ause o5 a7tion /e7ause t(e t(ree !ro)issor: notes 6erenot :et due and de)anda/e In *e7e)/er "11;, sin7e t(e !etitioner 7or!oration 6ase4!erien7in. (u.e osses due to t(e Asian 5inan7ia 7risis, C(ristian a.reed =a> to 6aive t(e

http://sc.judiciary.gov.ph/jurisprudence/2005/apr2005/161135.htm#_ftn1






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interest o5 "3Q !er annu), and =/> a77e!t !a:)ents o5 t(e !rin7i!a oans in insta)ent/asis, t(e a)ount and !eriod o5 6(i7( 6oud de!end on t(e state o5 /usiness o5 t(e !etitioner 7or!oration T(us, t(e !etitioner !aid C(ristian 7a!ita re!a:)ent in t(e a)ount o5 US;32!er )ont( 5ro) ?anuar: "11$ unti t(e ti)e t(e 7o)!aint 6as 5ied in Fe/ruar: "111 T(e!etitioner and its 7o-de5endants t(en !ra:ed t(at t(e 7o)!aint /e dis)issed and t(at

C(ristian /e ordered to !a: P" )iion as )ora da)a.esJ P322,222 as e4e)!ar: da)a.esJand P"22,222 as attorne:@s 5ees8#9

In due 7ourse and a5ter (earin., t(e tria 7ourt rendered a de7ision 839 on 3 Ma: 0222de7arin. t(e 5irst t6o !ro)issor: notes dated ; Au.ust "11& and "# Mar7( "11; as aread:due and de)anda/e and t(at t(e interest on t(e oans (ad /een redu7ed /: t(e !arties 5ro)"3Q to &Q !er annu) It t(en ordered t(e !etitioner 7or!oration to !a: C(ristian t(e a)ounto5 "22,222 re!resentin. t(e !rin7i!a o/i.ation 7overed /: t(e !ro)issor: notes dated ;

Au.ust "11& and "# Mar7( "11;, !us interest o5 &Q !er )ont( t(ereon unti 5u: !aid, 6it(a interest !a:)ents aread: !aid /: t(e de5endant to t(e !ainti55 to /e dedu7ted t(ere5ro)D

T(e tria 7ourt ratio7inated in t(is 6ise'

="> T(ere 6as no novation o5 de5endant@s o/i.ation to t(e !ainti55 Under Arti7e "010 o5 t(eCivi Code, t(ere is an i)!ied novation on: i5 t(e od and t(e ne6 o/i.ation /e on ever:!oint in7o)!ati/e 6it( one anot(er

T(e test o5 in7o)!ati/iit: /et6een t(e t6o o/i.ations or 7ontra7ts, a77ordin. to an i))inentaut(or, is 6(et(er t(e: 7an stand to.et(er, ea7( one (avin. an inde!endent e4isten7e I5 t(e:7annot, t(e: are in7o)!ati/e, and t(e su/se<uent o/i.ation novates t(e 5irst =Toentino, CiviCode o5 t(e P(ii!!ines, +o I+, "11" ed, ! %$#> Ot(er6ise, t(e od o/i.ation 6i 7ontinueto su/sist su/e7t to t(e )odi5i7ations a.reed u!on /: t(e !arties T(us, it (as /een 6rittent(at a77identa )odi5i7ations in an e4istin. o/i.ation do not e4tin.uis( it /: novation Mere)odi5i7ations o5 t(e de/t a.reed u!on /et6een t(e !arties do not 7onstitute novation (ent(e 7(an.es re5er to se7ondar: a.ree)ent and not to t(e o/e7t or !rin7i!a 7onditions o5 t(e7ontra7t, t(ere is no novationJ su7( 7(an.es 6i !rodu7e )odi5i7ations o5 in7identa 5a7ts, /ut6i not e4tin.uis( t(e ori.ina o/i.ation T(us, t(e a77e!tan7e o5 !artia !a:)ents or a !artiare)ission does not invove novation =id , ! %$;> Neit(er does t(e redu7tion o5 t(e a)ount o5 an o/i.ation a)ount to a novation /e7ause it on: )eans a !artia re)ission or 7ondonationo5 t(e sa)e de/t

In t(e instant 7ase, t(e Court is o5 t(e vie6 t(at t(e !arties )ere: intended to 7(an.e t(e rateo5 interest 5ro) "3Q !er annu) to &Q !er annu) 6(en t(e de5endant started !a:in. ;32!er )ont( 6(i7( !a:)ents 6ere a a77e!ted /: t(e !ainti55 5ro) ?anuar: "11$ on6ard T(e!a:)ent o5 t(e !rin7i!a o/i.ation, (o6ever, re)ains una55e7ted 6(i7( )eans t(at t(ede5endant s(oud sti !a: t(e !ainti55 32,222 on Au.ust 1, "111, Mar7( "#, 0222 and ?u:"#, 0222

=0> (en t(e instant 7ase 6as 5ied on Fe/ruar: 0, "111, none o5 t(e !ro)issor: notes 6asdue and de)anda/e As o5 t(is date (o6ever, t(e 5irst and t(e se7ond !ro)issor: notes (avearead: )atured en7e, !a:)ent is aread: due





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Under Se7tion 3 o5 Rue "2 o5 t(e "11; Rues o5 Civi Pro7edure, a 7o)!aint 6(i7( states no7ause o5 a7tion )a: /e 7ured /: eviden7e !resented 6it(out o/e7tion T(us, even i5 t(e!ainti55 (ad no 7ause o5 a7tion at t(e ti)e (e 5ied t(e instant 7o)!aint, as de5endants@o/i.ation are not :et due and de)anda/e t(en, (e )a: nevert(eess re7over on t(e 5irst t6o!ro)issor: notes in vie6 o5 t(e introdu7tion o5 eviden7e s(o6in. t(at t(e o/i.ations 7overed

/: t(e t6o !ro)issor: notes are no6 due and de)anda/e

=%> Individua de5endants Rodne: e.ert: and Att: Leonor L In5ante 7an not /e (ed!ersona: ia/e 5or t(e o/i.ations 7ontra7ted /: t(e de5endant 7or!oration it /ein. 7ear t(att(e: )ere: a7ted in re!resentation o5 t(e de5endant 7or!oration in t(eir 7a!a7it: as GeneraMana.er and President, res!e7tive:, 6(en t(e: si.ned t(e !ro)issor: notes as eviden7ed/: Board Resoution No "=1#> !assed /: t(e Board o5 *ire7tors o5 t(e de5endant 7or!oration=E4(i/it #D>8&9

In its de7ision8;9 o5 3 Se!te)/er 022%, t(e Court o5 A!!eas denied !etitioner@s a!!ea anda55ir)ed in toto t(e de7ision o5 t(e tria 7ourt, (odin. as 5oo6s'

In t(e 7ase at /en7(, t(ere is no in7o)!ati/iit: /e7ause t(e 7(an.es re5erred to /: a!!eantS6a.)an 7onsist on: in t(e )anner o5 !a:)ent

A!!eant S6a.)an@s inter!retation t(at t(e t(ree =%> !ro)issor: notes (ave /een novated /:reason o5 a!!eee C(ristian@s a77e!tan7e o5 t(e )ont(: !a:)ents o5 US;3222 as 7a!itare!a:)ents 7ontinuous: even a5ter t(e 5iin. o5 t(e instant 7ase is a itte /it strained7onsiderin. t(e sti55 re<uire)ents o5 t(e a6 on novation t(at t(e intention to novate )usta!!ear /: e4!ress a.ree)ent o5 t(e !arties, or /: t(eir a7ts t(at are too 7ear andune<uivo7a to /e )istaen Under t(e 7ir7u)stan7es, t(e )ore reasona/e inter!retation o5 t(e a7t o5 t(e a!!eee C(ristian in re7eivin. t(e )ont(: !a:)ents o5 US;3222 is t(ata!!eee C(ristian )ere: ao6ed a!!eant S6a.)an to !a: 6(atever a)ount t(e atter is7a!a/e o5 T(is inter!retation is su!!orted /: t(e etter o5 de)and dated *e7e)/er "&, "11$6(erein a!!eee C(ristian de)anded 5ro) a!!eant S6a.)an to return t(e !rin7i!a oan int(e a)ount o5 US"32,222 !us un!aid interest in t(e a)ount o5 US"%,32222

A!!eant S6a.)an, ie6ise, 7ontends t(at, at t(e ti)e o5 t(e 5iin. o5 t(e 7o)!aint, a!!eeeC(ristian (a8d9 no 7ause o5 a7tion /e7ause none o5 t(e !ro)issor: notes 6as due andde)anda/e

A.ain, e are not !ersuaded

In t(e 7ase at /en7(, 6(ie it is true t(at a!!eant S6a.)an raised in its Ans6er t(e issue o5 !re)aturit: in t(e 5iin. o5 t(e 7o)!aint, a!!eant S6a.)an nonet(eess 5aied to o/e7t toa!!eee C(ristian@s !resentation o5 eviden7e to t(e e55e7t t(at t(e !ro)issor: notes (ave/e7o)e due and de)anda/e





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T(e a5ore-<uoted rue ao6s a 7o)!aint 6(i7( states no 7ause o5 a7tion to /e 7ured eit(er /: eviden7e !resented 6it(out o/e7tion or, in t(e event o5 an o/e7tion sustained /: t(e7ourt, /: an a)end)ent o5 t(e 7o)!aint 6it( eave o5 7ourt =errera, Re)edia La6, +o +II,"11; ed, ! "2$>8$9

Its )otion 5or re7onsideration (avin. /een denied /: t(e Court o5 A!!eas in its Resoution o5 # *e7e)/er 022%,819 t(e !etitioner 7a)e to t(is Court raisin. t(e 5oo6in. issues'

I ERE TE *ECISION OF TE TRIAL COURT *ROPPING TO *EFEN*ANTSAS BECOME FINAL AN* EECUTORY, MAY TE RESPON*ENT COURT OF APPEALSSTILL STUBBORNLY CONSI*ER TEM AS APPELLANTS EN TEY *I* NOT

APPEAL

II ERE TERE IS NO CAUSE OF ACTION, IS TE *ECISION OF TE LOERCOURT +ALI*

III MAY TE RESPON*ENT COURT OF APPEALS +ALI*LY AFFIRM A *ECISION OFTE LOER COURT IC IS IN+ALI* *UE TO LAC OF CAUSE OF ACTION

I+ ERE TERE IS A +ALI* NO+ATION, MAY TE ORIGINAL TERMS OFCONTRACT IC AS BEEN NO+ATE* STILL PRE+AIL8"29

T(e !etitioner (ar!s on t(e a/sen7e o5 a 7ause o5 a7tion at t(e ti)e t(e !rivate res!ondent@s7o)!aint 6as 5ied 6it( t(e tria 7ourt In 7onne7tion 6it( t(is, t(e !etitioner raises t(e issueo5 novation /: ar.uin. t(at its o/i.ations under t(e t(ree !ro)issor: notes 6ere novated /:t(e rene.otiation t(at (a!!ened in *e7e)/er "11; 6(erein t(e !rivate res!ondent a.reed to6aive t(e interest in ea7( o5 t(e t(ree !ro)issor: notes and to a77e!t US;32 !er )ont( asinsta)ent !a:)ent 5or t(e !rin7i!a oans in t(e tota a)ount o5 US"32,222 Last:, t(e!etitioner <uestions t(e a7t o5 t(e Court o5 A!!eas in 7onsiderin. e.ert: and In5ante asa!!eants 6(en t(e: no on.er a!!eaed /e7ause t(e tria 7ourt (ad aread: a/soved t(e)o5 t(e ia/iit: o5 t(e !etitioner 7or!oration

On t(e ot(er (and, t(e !rivate res!ondent asserts t(at t(is !etition is a )ere !o: to 7ontinuedea:in. t(e !a:)ent o5 a ust o/i.ationD Anent t(e 5a7t t(at e.ert: and Att: In5ante 6ere7onsidered /: t(e Court o5 A!!eas as a!!eants, t(e !rivate res!ondent 5inds it i))ateria/e7ause t(e: are not a55e7ted /: t(e assaied de7ision an:6a:

Cause o5 a7tion, as de5ined in Se7tion 0, Rue 0 o5 t(e "11; Rues o5 Civi Pro7edure, is t(ea7t or o)ission /: 6(i7( a !art: vioates t(e ri.(t o5 anot(er Its essentia ee)ents are as5oo6s'

" A ri.(t in 5avor o5 t(e !ainti55 /: 6(atever )eans and under 6(atever a6 it arises or is7reatedJ

0 An o/i.ation on t(e !art o5 t(e na)ed de5endant to res!e7t or not to vioate su7( ri.(tJand







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% A7t or o)ission on t(e !art o5 su7( de5endant in vioation o5 t(e ri.(t o5 t(e !ainti55 or 7onstitutin. a /rea7( o5 t(e o/i.ation o5 t(e de5endant to t(e !ainti55 5or 6(i7( t(e atter )a:)aintain an a7tion 5or re7over: o5 da)a.es or ot(er a!!ro!riate reie5 8""9

It is, t(us, on: u!on t(e o77urren7e o5 t(e ast ee)ent t(at a 7ause o5 a7tion arises, .ivin.

t(e !ainti55 t(e ri.(t to )aintain an a7tion in 7ourt 5or re7over: o5 da)a.es or ot(er a!!ro!riate reie5

It is undis!uted t(at t(e t(ree !ro)issor: notes 6ere 5or t(e a)ount o5 P32,222 ea7( anduni5or): !rovided 5or ="> a ter) o5 t(ree :earsJ =0> an interest o5 "3 Q !er annu), !a:a/e<uarter:J and =%> t(e re!a:)ent o5 t(e !rin7i!a oans a5ter t(ree :ears 5ro) t(eir res!e7tivedates o6ever, /ot( t(e Court o5 A!!eas and t(e tria 7ourt 5ound t(at a rene.otiation o5 t(et(ree !ro)issor: notes indeed (a!!ened in *e7e)/er "11; /et6een t(e !rivate res!ondentand t(e !etitioner resutin. in t(e redu7tion not 6aiver o5 t(e interest 5ro) "3Q to &Q !er annu), 6(i7( 5ro) t(en on 6as !a:a/e )ont(:, instead o5 <uarter: T(e ter) o5 t(e!rin7i!a oans re)ained un7(an.ed in t(at t(e: 6ere sti due t(ree :ears 5ro) t(e res!e7tive

dates o5 t(e !ro)issor: notes T(us, at t(e ti)e t(e 7o)!aint 6as 5ied 6it( t(e tria 7ourt on0 Fe/ruar: "111, none o5 t(e t(ree !ro)issor: notes 6as due :etJ at(ou.(, t6o o5 t(e!ro)issor: notes 6it( t(e due dates o5 ; Au.ust "111 and "# Mar7( 0222 )atured durin. t(e!enden7: o5 t(e 7ase 6it( t(e tria 7ourt Bot( 7ourts aso 5ound t(at t(e !etitioner (ad /eenrei.ious: !a:in. t(e !rivate res!ondent US;32 !er )ont( 5ro) ?anuar: "11$ and evendurin. t(e !enden7: o5 t(e 7ase /e5ore t(e tria 7ourt and t(at t(e !rivate res!ondent (ada77e!ted a t(ese )ont(: !a:)ents

it( t(ese 5indin.s o5 5a7ts, it (as /e7o)e .arin.: o/vious t(at 6(en t(e 7o)!aint 5or asu) o5 )one: and da)a.es 6as 5ied 6it( t(e tria 7ourt on 0 Fe/ruar: "111, no 7ause o5 a7tion (as as :et e4isted /e7ause t(e !etitioner (ad not 7o))itted an: a7t in vioation o5 t(eter)s o5 t(e t(ree !ro)issor: notes as )odi5ied /: t(e rene.otiation in *e7e)/er "11;it(out a 7ause o5 a7tion, t(e !rivate res!ondent (ad no ri.(t to )aintain an a7tion in 7ourt,and t(e tria 7ourt s(oud (ave t(ere5ore dis)issed (is 7o)!aint

*es!ite its 5indin. t(at t(e !etitioner 7or!oration did not vioate t(e )odi5ied ter)s o5 t(e t(ree!ro)issor: notes and t(at t(e !a:)ent o5 t(e !rin7i!a oans 6ere not :et due 6(en t(e7o)!aint 6as 5ied, t(e tria 7ourt did not dis)iss t(e 7o)!aint, 7itin. Se7tion 3, Rue "2 o5 t(e "11; Rues o5 Civi Pro7edure, 6(i7( reads'

Se7tion 3 Amendment to conform to or authori!e presentation of evidence (en issuesnot raised /: t(e !eadin.s are tried 6it( t(e e4!ress or i)!ied 7onsent o5 t(e !arties, t(e:s(a /e treated in a res!e7ts as i5 t(e: (ad /een raised in t(e !eadin.s Su7( a)end)ento5 t(e !eadin.s as )a: /e ne7essar: to 7ause t(e) to 7on5or) to t(e eviden7e and to raiset(ese issues )a: /e )ade u!on )otion o5 an: !art: at an: ti)e, even a5ter ud.)entJ /ut5aiure to a)end does not a55e7t t(e resut o5 t(e tria o5 t(ese issues I5 eviden7e is o/e7tedto at t(e tria on t(e .round t(at it is not 6it(in t(e issues )ade /: t(e !eadin.s, t(e 7ourt)a: ao6 t(e !eadin.s to /e a)ended and s(a do so 6it( i/erait: i5 t(e !resentation o5 t(e )erits o5 t(e a7tion and t(e ends o5 su/stantia usti7e 6i /e su/served t(ere/: T(e7ourt )a: .rant a 7ontinuan7e to ena/e t(e a)end)ent to /e )ade



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A77ordin. to t(e tria 7ourt, and sustained /: t(e Court o5 A!!eas, t(is Se7tion ao6s a7o)!aint t(at does not state a 7ause o5 a7tion to /e 7ured /: eviden7e !resented 6it(outo/e7tion durin. t(e tria T(us, it rued t(at even i5 t(e !rivate res!ondent (ad no 7ause o5 a7tion 6(en (e 5ied t(e 7o)!aint 5or a su) o5 )one: and da)a.es /e7ause none o5 t(et(ree !ro)issor: notes 6as due :et, (e 7oud nevert(eess re7over on t(e 5irst t6o

!ro)issor: notes dated ; Au.ust "11& and "# Mar7( "11;, 6(i7( /e7a)e due durin. t(e!enden7: o5 t(e 7ase in vie6 o5 t(e introdu7tion o5 eviden7e o5 t(eir )aturit: durin. t(e tria

Su7( inter!retation o5 Se7tion 3, Rue "2 o5 t(e "11; Rues o5 Civi Pro7edure is erroneous

A)end)ents o5 !eadin.s are ao6ed under Rue "2 o5 t(e "11; Rues o5 Civi Pro7edure inorder t(at t(e a7tua )erits o5 a 7ase )a: /e deter)ined in t(e )ost e4!editious andine4!ensive )anner 6it(out re.ard to te7(ni7aities, and t(at a ot(er )atters in7uded in t(e7ase )a: /e deter)ined in a sin.e !ro7eedin., t(ere/: avoidin. )uti!i7it: o5 suits 8"09Se7tion 3 t(ereo5 a!!ies to situations 6(erein eviden7e not 6it(in t(e issues raised in t(e!eadin.s is !resented /: t(e !arties durin. t(e tria, and to 7on5or) to su7( eviden7e t(e

!eadin.s are su/se<uent: a)ended on )otion o5 a !art: T(us, a 7o)!aint 6(i7( 5ais tostate a 7ause o5 a7tion )a: /e 7ured /: eviden7e !resented durin. t(e tria

o6ever, t(e 7urin. e55e7t under Se7tion 3 is a!!i7a/e only if a cause of action in fact e)istsat the time the complaint is filed but the complaint is defective for failure to allege theessential facts For e4a)!e, i5 a 7o)!aint 5aied to ae.e t(e 5u5i)ent o5 a 7ondition!re7edent u!on 6(i7( t(e 7ause o5 a7tion de!ends, eviden7e s(o6in. t(at su7( 7ondition(ad aread: /een 5u5ied 6(en t(e 7o)!aint 6as 5ied )a: /e !resented durin. t(e tria, andt(e 7o)!aint )a: a77ordin.: /e a)ended t(erea5ter8"%9 T(us, in *oces v. Jalandoni ,8"#9t(is Court u!(ed t(e tria 7ourt in tain. 7o.niHan7e o5 an ot(er6ise de5e7tive 7o)!aint6(i7( 6as ater 7ured /: t(e testi)on: o5 t(e !ainti55 durin. t(e tria In t(at 7ase, t(ere 6asin 5a7t a 7ause o5 a7tion and t(e on: !ro/e) 6as t(e insu55i7ien7: o5 t(e ae.ations in t(e7o)!aint T(is ruin. 6as reiterated in "ascua v. Court of Appeals8"39

It t(us 5oo6s t(at a 7o)!aint 6(ose 7ause o5 a7tion (as not :et a77rued 7annot /e 7ured or re)edied /: an a)ended or su!!e)enta !eadin. ae.in. t(e e4isten7e or a77rua o5 a7ause o5 a7tion 6(ie t(e 7ase is !endin.8"&9 Su7( an a7tion is !re)ature: /rou.(t and is,t(ere5ore, a .roundess suit, 6(i7( s(oud /e dis)issed /: t(e 7ourt u!on !ro!er )otionseasona/: 5ied /: t(e de5endant T(e under:in. reason 5or t(is rue is t(at a !erson s(oudnot /e su))oned /e5ore t(e !u/i7 tri/unas to ans6er 5or 7o)!aints 6(i7( are i))ature

As t(is Court eo<uent: said in +urigao ,ine -)ploration Co. nc. v. /arris'8";9

It is a rue o5 a6 to 6(i7( t(ere is, !er(a!s, no e47e!tion, eit(er at a6 or in e<uit:, t(at tore7over at a there must be some +ause of a+tion at the +ommen+ement of the suit Aso/served /: 7ounse 5or a!!eees, t(ere are reasons o5 !u/i7 !oi7: 6(: t(ere s(oud /e noneedess (aste in /rin.in. u! iti.ation, and 6(: !eo!e 6(o are in no de5aut and a.ainst6(o) t(ere is :et no 7ause o5 a7tion s(oud not /e su))oned /e5ore t(e !u/i7 tri/unas toans6er 7o)!aints 6(i7( are .roundess e sa: .roundess /e7ause i5 t(e a7tion isi))ature, it s(oud not /e entertained, and an a7tion !re)ature: /rou.(t is a .roundesssuit














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It is true t(at an a)ended 7o)!aint and t(e ans6er t(ereto tae t(e !a7e o5 t(e ori.inas6(i7( are t(ere/: re.arded as a/andoned =Re:nes vs Co)!aa Genera de Ta/a7os8"1"09, 0" P(i #"&J Ru:)an and Farris vs *ire7tor o5 Lands 8"1"&9, %# P(i, #0$> and t(att(e 7o)!aint and ans6er (avin. /een su!erseded /: t(e a)ended 7o)!aint and ans6er t(ereto, and t(e ans6er to t(e ori.ina 7o)!aint not (avin. /een !resented in eviden7e as an

e4(i/it, t(e tria 7ourt 6as not aut(oriHed to tae it into a77ountD =Bastida vs MenHi Co8"1%%9, 3$ P(i, "$$> But in none o5 t(ese 7ases or in an: ot(er 7ase (ave 6e (ed t(at i5 ari.(t o5 a7tion did not e4ist 6(en t(e ori.ina 7o)!aint 6as 5ied, one 7oud /e 7reated /:5iin. an a)ended 7o)!aint In so)e urisdi7tions in t(e United States 6(at 6as ter)ed ani)!er5e7t 7ause o5 a7tionD 7oud /e !er5e7ted /: suita/e a)end)ent =Bro6n vs GaenaMinin. S)etin. Co, %0 an, 30$J oo!er vs Cit: o5 Atanta, 0& Ga A!!, 00"> and t(is isvirtua: !er)itted in BanHon and Rosauro vs Sener =8"1%%9, 3$ P(i, #3%>J Asiati7Potroeu) 8si79 Co vs +eoso =8"1%39, &0 P(i, &$%>J and re7ent: in Ra)os vs Gi//on =%$O55 GaH, 0#"> 9hat, ho<ever, <hi+h is no +ause of a+tion <hatsoever +annot byamendment or supplemental pleading /e 7onverted into a 7ause o5 a7tion' Nihil de reaccrescit ei 0ui nihil in re 0uando 1us accresceret habet

e are t(ere5ore o5 t(e o!inion, and so (od, t(at unless the plaintiff has a valid andsubsisting +ause of a+tion at the time his a+tion is +ommen+ed, the defe+t +annot be+ured or remedied by the a+@uisition or a++rual of one <hile the a+tion is pending, anda supplemental +omplaint or an amendment setting up su+h after%a++rued +ause of a+tion is not permissible =E)!(asis ours>

en7e, 7ontrar: to t(e (odin. o5 t(e tria 7ourt and t(e Court o5 A!!eas, t(e de5e7t o5 a7 o5 7ause o5 a7tion at t(e 7o))en7e)ent o5 t(is suit 7annot /e 7ured /: t(e a77rua o5 a 7auseo5 a7tion durin. t(e !enden7: o5 t(is 7ase arisin. 5ro) t(e ae.ed )aturit: o5 t6o o5 t(e!ro)issor: notes on ; Au.ust "111 and "# Mar7( 0222

Anent t(e issue o5 novation, t(is Court o/serves t(at t(e !etitioner 7or!oration ar.ues t(ee4isten7e o5 novation /ased on its o6n version o5 6(at trans!ired durin. t(e rene.otiation o5 t(e t(ree !ro)issor: notes in *e7e)/er "11; B: usin. its o6n version o5 5a7ts, t(e!etitioner is, in a 6a:, <uestionin. t(e 5indin.s o5 5a7ts o5 t(e tria 7ourt and t(e Court o5

A!!eas

As a rue, t(e 5indin.s o5 5a7t o5 t(e tria 7ourt and t(e Court o5 A!!eas are 5ina and7on7usive and 7annot /e revie6ed on a!!ea to t(e Su!re)e Court8"$9 as on. as t(e: are/orne out /: t(e re7ord or are /ased on su/stantia eviden7e8"19 T(e Su!re)e Court is not atrier o5 5a7ts, its urisdi7tion /ein. i)ited to revie6in. on: errors o5 a6 t(at )a: (ave /een7o))itted /: t(e o6er 7ourts A)on. t(e e47e!tions is 6(en t(e 5indin. o5 5a7t o5 t(e tria7ourt or t(e Court o5 A!!eas is not su!!orted /: t(e eviden7e on re7ord or is /ased on a)isa!!re(ension o5 5a7ts Su7( e47e!tion o/tains in t(e !resent 7ase8029

T(is Court 5inds to /e 7ontrar: to t(e eviden7e on re7ord t(e 5indin. o5 /ot( t(e tria 7ourt andt(e Court o5 A!!eas t(at t(e rene.otiation in *e7e)/er "11; resuted in t(e redu7tion o5 t(einterest 5ro) "3Q to &Q !er annu) and t(at t(e )ont(: !a:)ents o5 US;32 )ade /: t(e!etitioner 6ere 5or t(e redu7ed interests







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It is 6ort(: to note t(at t(e 7as( vou7(er dated ?anuar: "11$80"9 states t(at t(e !a:)ent o5 US;32 re!resents IN+ESTMENT PAYMENTD A t(e su77eedin. 7as( vou7(ers des7ri/et(e !a:)ents 5ro) Fe/ruar: "11$ to Se!te)/er "111 as CAPITAL REPAYMENTD 8009 At(ese 7as( vou7(ers served as re7ei!ts eviden7in. !rivate res!ondent@s a7no6ed.)ent o5 t(e !a:)ents )ade /: t(e !etitioner' t6o o5 6(i7( 6ere si.ned /: t(e !rivate res!ondent

(i)se5 and a t(e ot(ers 6ere si.ned /: (is re!resentatives T(e !rivate res!ondent evenidenti5ied and 7on5ir)ed t(e e4isten7e o5 t(ese re7ei!ts durin. t(e (earin. 80%9 Si.ni5i7ant:,7o.niHant o5 t(ese re7ei!ts, t(e !rivate res!ondent a!!ied t(ese !a:)ents to t(e t(ree7onsoidated !rin7i!a oans in t(e su))ar: o5 !a:)ents (e su/)itted to t(e 7ourt 80#9

Under Arti7e "03% o5 t(e Civi Code, i5 t(e de/t !rodu7es interest, !a:)ent o5 t(e !rin7i!as(a not /e dee)ed to (ave /een )ade unti t(e interest (as /een 7overed In t(is 7ase, t(e!rivate res!ondent 6oud not (ave si.ned t(e re7ei!ts des7ri/in. t(e !a:)ents )ade /: t(e!etitioner as 7a!ita re!a:)entD i5 t(e o/i.ation to !a: t(e interest 6as sti su/sistin. T(ere7ei!ts, as 6e as !rivate res!ondent@s su))ar: o5 !a:)ents, end 7reden7e to !etitioner@s7ai) t(at t(e !a:)ents 6ere 5or t(e !rin7i!a oans and t(at t(e interests on t(e t(ree7onsoidated oans 6ere 6aived /: t(e !rivate res!ondent durin. t(e undis!utedrene.otiation o5 t(e oans on a77ount o5 t(e /usiness reverses su55ered /: t(e !etitioner att(e ti)e

T(ere 6as t(ere5ore a novation o5 t(e ter)s o5 t(e t(ree !ro)issor: notes in t(at t(e interest6as 6aived and t(e !rin7i!a 6as !a:a/e in )ont(: insta)ents o5 US;32 Aterations o5 t(e ter)s and 7onditions o5 t(e o/i.ation 6oud .enera: resut on: in )odi5i7ator: novationuness su7( ter)s and 7onditions are 7onsidered to /e t(e essen7e o5 t(e o/i.ation itse5 8039T(e resutin. novation in t(is 7ase 6as, t(ere5ore, o5 t(e )odi5i7ator: t:!e, not t(e e4tin7tivet:!e, sin7e t(e o/i.ation to !a: a su) o5 )one: re)ains in 5or7e

T(us, sin7e t(e !etitioner did not rene.e on its o/i.ation to !a: t(e )ont(: insta)ents7on5or)a/: 6it( t(eir ne6 a.ree)ent and even 7ontinued !a:in. durin. t(e !enden7: o5 t(e7ase, t(e !rivate res!ondent (ad no 7ause o5 a7tion to 5ie t(e 7o)!aint It is on: u!on!etitioner@s de5aut in t(e !a:)ent o5 t(e )ont(: a)ortiHations t(at a 7ause o5 a7tion 6oudarise and .ive t(e !rivate res!ondent a ri.(t to )aintain an a7tion a.ainst t(e !etitioner

Last:, t(e !etitioner 7ontends t(at t(e Court o5 A!!eas o/stinate: in7uded its PresidentIn5ante and +i7e-President e.ert: as a!!eants even i5 t(e: did not a!!ea t(e tria 7ourt@sde7ision sin7e t(e: 6ere 5ound to /e not !ersona: ia/e 5or t(e o/i.ation o5 t(e !etitionerIndeed, t(e Court o5 A!!eas erred in re5errin. to t(e) as de5endants-a!!eantsJnevert(eess, t(at error is no 7ause 5or aar) /e7ause its ruin. 6as 7ear t(at t(e !etitioner 7or!oration 6as t(e one soe: ia/e 5or its o/i.ation In 5a7t, t(e Court o5 A!!eas a55ir)edin toto t(e de7ision o5 t(e tria 7ourt, 6(i7( )eans t(at it aso u!(ed t(e atter@s ruin. t(ate.ert: and In5ante 6ere not !ersona: ia/e 5or t(e !e7uniar: o/i.ations o5 t(e !etitioner tot(e !rivate res!ondent

In su), /ased on our dis<uisition on t(e a7 o5 7ause o5 a7tion 6(en t(e 7o)!aint 5or su) o5 )one: and da)a.es 6as 5ied /: t(e !rivate res!ondent, t(e !etition in t(e 7ase at /ar isi)!ressed 6it( )erit











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WHEREFORE, t(e !etition is (ere/: GRANTE* T(e *e7ision o5 3 Se!te)/er 022% o5 t(eCourt o5 A!!eas in CA-GR C+ No &$"21, 6(i7( a55ir)ed t(e *e7ision o5 3 Ma: 0222 o5 t(eRe.iona Tria Court o5 Ba.uio, Bran7( 31, .rantin. in !art !rivate res!ondent@s 7o)!aint 5or su) o5 )one: and da)a.es, and its Resoution o5 # *e7e)/er 022%, 6(i7( denied!etitioner@s )otion 5or re7onsideration are (ere/: RE+ERSE* and SET ASI*E T(e

7o)!aint do7eted as Civi Case No #0$0-R is (ere/: *ISMISSE* 5or a7 o5 7ause o5 a7tion

No 7osts

SO OR*ERE*

Kuisu)/in., Ynares-Santia.o, Car!io, and AH7una, ??, 7on7ur

#.R. No. *((( February >, )*)

/R$O" $EO6RER, !etitionervs9HE /O1R9 OF 22E$" and 6NA OF 9HE 2HI$I22INE I"$ND", res!ondents

Beng!on 2arraga Narciso Cudala "escon & Bengson for petitioner.

Leoner *amire! & Associates for respondent B".

/OR9E", J.:

T(e 7ru4 o5 t(e !resent !etition 5or revie6 on 7ertiorari is t(e !ro!riet: o5 t(e ad)ission /: t(etria 7ourt o5 a su!!e)enta 7o)!aint 5ied /: !etitioner

T(e undis!uted 5a7ts o5 t(e 7ase are as 5oo6s'

So)eti)e in "1$2, !etitioner Caros Leo/rera =Leo/rera 5or s(ort> 6as .ranted an P$22,22222 7redit 5a7iit: /: !rivate res!ondent Ban o5 t(e P(ii!!ine Isands =BPI 5or s(ort>7onsistin. o5 t(e 5oo6in.' =a> P 022,22222 revovin. !ro)issor: note ine at "2Q interest!aJ =/> P "22,22222 e4!ort advan7e ine at "0Q interest !aJ and, =7> P 322,22222Industria Guarantee Loan Fund =IGLF> oan at "0Q interest !a T(e 5a7iit: 6as .ranted as

!art o5 an a)i7a/e sette)ent /et6een BPI and Leo/rera 6(erein t(e atter a.reed to dro!(is 7ai)s 5or da)a.es a.ainst t(e 5or)er 5or its ae.ed 5aiure to deiver on ti)e t(ree e4!ortetters o5 7redit o!ened in Leo/reras 5avor 8Re7ord, !! ;1 and 109 T(e 7redit 5a7iit: .ranted6as se7ured /: t6o rea estate )ort.a.es dated 02 Nove)/er "1;& and $ Fe/ruar: "1$2 In"1$#, t(e 5a7iit: 6as entire: 7onverted into a revovin. !ro)issor: note ine at 0&Q interest!a and set on a 5oatin. rate /asis t(e :ear a5ter T(e ine 6as ast rene6ed on 0" Mar7("1$& eviden7ed /: t6o 12-da: !ro)issor: notes nu)/ered 2";- $&V20%%-2 and 2";-$&V20%#-$ 5or P 322,22222 and P %22,22222 res!e7tive: 8Roo, !! &;-&$9

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Aside 5ro) t(e a/ove)entioned 7redit 5a7iit:, Leo/rera aso o/tained 5ro) BPI a se!aratet(ree-:ear ter) oan in t(e a)ount o5 P 322,22222 eviden7ed /: Pro)issor: Note No2";$3V200#-2 dated "3 Nove)/er "1$3 8Roo, ! &&9 T(is t(ree-:ear ter) oan 6as se7ured/: a t(ird rea estate )ort.a.e dated 0% O7to/er "1$3

U!on )aturit: o5 t(e 12-da: notes 8Roo !! &;-&$" BPI and Leo/rera ne.otiated, a/eitunsu77ess5u:, on t(e ter)s o5 t(eir rene6a No a.ree)ent (avin. /een rea7(ed /: t(e),BPI de)anded t(e 5u !a:)ent o5 t(e oan Leo/rera 5aied to sette (is oan a77ount t(us BPI!re!ared to 5ore7ose t(e rea estate )ort.a.es se7urin. t(e sa)e Be5ore BPI 7oud institute5ore7osure !ro7eedin.s (o6ever, Leo/rera 5ied on & ?anuar: "1$; a 7o)!aint 5or da)a.es6it( a !ra:er 5or t(e issuan7e o5 a 6rit o5 !rei)inar: inun7tion seein. to enoin BPI 5ro)5ore7osin. t(e )ort.a.es, do7eted as Civi Case No "3&## o5 t(e Re.iona Tria Court o5 Maati, Metro Mania, Bran7( CL+

T(e tria 7ourt issued an order restrainin. BPI 5ro) 5ore7osin. t(e rea estate )ort.a.esse7urin. t(e 12 da: oans and, a5ter (earin., issued a 6rit o5 !rei)inar: inun7tion

Mean6(ie, on 1 Fe/ruar: "1$;, t(e /an 6rote Leo/rera 7ai)in. t(at (e 5aied to !a: t(ea)ortiHation due on t(e t(ree-:ear ter) oan, as a resut o5 6(i7(, BPI o!ted to a77earate t(e)aturit: o5 t(e oan and 7aed t(e entire oan due and de)anda/e Leo/rera ie6ise 5aiedto re)it t(e a)ount due and BPI t(us t(reatened to 5ore7ose t(e rea estate )ort.a.ese7urin. t(e oan

Be5ore BPI 7oud 5ore7ose t(e )ort.a.e, !etitioner 5ied 6it( t(e tria 7ourt on "" Mar7( "1$;a Motion to Fie Su!!e)enta Co)!aint, atta7(in. t(ereto t(e su!!e)enta 7o)!aint6(i7( !ra:ed 5or t(e issuan7e o5 an inun7tion to restrain BPI 5ro) 5ore7osin. t(e t(ird)ort.a.e T(e ne4t da:, "0 Mar7( "1$;, t(e tria 7ourt .ranted Leo/reras )otion to 5ie t(esu!!e)enta 7o)!aint and issued a restrainin. order enoinin. BPI 5ro) !ro7eedin. 6it(an: 3Legal court or other action3 arisin. 5ro) t(e !ro)issor: note eviden7in. t(e t(ree-:ear ter) oan T(at order 6as served on BPI on "% Mar7( "1$; 8Roo, ! 3$9

Contestin. t(e vaidit: o5 t(e "0 Mar7( "1$; order, BPI 5ied a )otion to set it aside /ut t(e)otion 6as denied /: t(e tria 7ourt on %" Mar7( "1$;

BPI t(en 5ied a !etition 5or 7ertiorari and !ro(i/ition 6it( a !ra:er 5or !rei)inar: inun7tion6it( t(e Court o5 A!!eas, seein. to annu t(e "0 Mar7( "1$; 7ourt order issued /: t(e tria7ourt and asin. t(at t(e atter /e !ro(i/ited 5ro) (earin. t(e !etition 5or inun7tion !ra:ed 5or in t(e su!!e)enta 7o)!aint

Be5ore t(e Court o5 A!!eas 7oud a7t on BPIs !etition (o6ever, t(e tria 7ourt .ranted t(einun7tion !ra:ed 5or

On 0% ?une "1$;, t(e Court o5 A!!eas .ave due 7ourse to BPIs !etition and enoined t(etria ud.e 5ro) en5or7in. (is order dated "0 Mar7( "1$; On 01 ?u: "1$;, t(e Court o5

A!!eas issued a 6rit o5 !rei)inar: inun7tion in 5avor o5 BPI

On 0" Se!te)/er "1$;, t(e Court o5 A!!eas rendered a de7ision in 5avor o5 BPI, t(edis!ositive !ortion o5 6(i7( reads as 5oo6s'

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EREFORE, t(e !etition is (ere/: .ranted T(e order o5 t(e res!ondent?ud.e dated Mar7( "0, "1$; is de7ared nu and void and set aside

Let t(e re7ords o5 t(is 7ase /e re)anded to t(e Court 5or 5urt(er !ro7eedin.s ont(e ori.ina 7o)!aint in Civi Case No 3&##

Costs a.ainst t(e !rivate res!ondents

SO OR*ERE* 8Roo, ! 039

Fro) t(e 5ore.oin. de7ision o5 t(e Court o5 A!!eas, Leo/rera 5ied t(e instant !etition 5or revie6 6it( !ra:er 5or t(e issuan7e o5 a 6rit o5 !rei)inar: inun7tion

On 0$ O7to/er "1$;, t(e Court issued a te)!orar: restrainin. order enoinin. BPI 5ro)5ore7osin. t(e t(ree =%> !ro!erties o5 t(e !etitioner (erein 8Roo, ! #"9 o6ever, /: t(isti)e, BPI (ad aread: 5ore7osed t6o o5 t(e !ro!erties 8Roo, ! #39 On 0# Fe/ruar: "1$$ t(e

Court .ave due 7ourse to t(e !etition and t(e !arties su/)itted t(eir res!e7tive )e)orandaPetitioner 5ied t6o )otions asin. 5or t(e e4tension o5 sus!ension o5 t(e !eriod to redee) t(e!ro!erties /ut t(e Court in a resoution dated 0" O7to/er "1$$ denied said )otions as 6e as!etitioners )otion 5or re7onsideration on 0% ?anuar: "1$1 T(e Court )ere: noted asu/se<uent )ani5estation and )otion !ra:in. t(at t(e 5ore7osure /e de7ared nu and void,as it 6as in e55e7t a se7ond )otion 5or re7onsideration

In assaiin. t(e de7ision o5 t(e Court o5 A!!eas, !etitioner assi.ns as errors t(e 5oo6in.'

I

TE ONORABLE COURT OF APPEALS ERRE* IN STATING TAT TE MOTION TO A*MIT SUPPLEMENTAL COMPLAINT FILE* BY EREIN PETITIONER *I* NOT CONTAIN A NOTICE OF EARING OR TAT TE SAME IS *EFECTI+E

II

TAT TE COURT OF APPEALS ERRE* IN CONSI*ERING TAT TE SUPPLEMENTALCOMPLAINT IN+OL+ES A NE OR *ISTINCT MATTER IC CANNOT BE ?OINE*IT TE ORIGINAL COMPLAINT

III

TAT TE COURT OF APPEALS ERRE* IN ISSUING TE IN?UNCTION PRAYE* FOR BYRESPON*ENTS AN* CONSEKUENTLY, GRA+E AN* IRREPARABLE IN?URY RESULTE*TO TE *AMAGE AN* PRE?U*ICE OF EREIN PETITIONER 8Roo, ! &9

T(e )ain issue (ere is 6(et(er or not t(e Court o5 A!!eas erred in (odin. t(at t(e tria 7ourta/used its dis7retion in ad)ittin. t(e su!!e)enta 7o)!aint Se7tion & o5 Rue "2 o5 t(eRues o5 Court .overnin. t(e ad)ission o5 su!!e)enta !eadin.s states'

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Se7tion & ,atters sub1ect of supplemental pleadings. - U!on )otion o5 a !art:t(e 7ourt )a:, u!on reasona/e noti7e and u!on su7( ter)s as are ust, !er)it(i) to serve a su!!e)enta !eadin. settin. 5ort( transa7tions, o77urren7es or events 6(i7( (a!!ened sin7e t(e date o5 t(e !eadin. sou.(t to /esu!!e)ented I5 t(e 7ourt dee)s it advisa/e t(at t(e adverse !art: s(oud

!ead t(ereto, it s(a so order, s!e7i5:in. t(e ti)e t(ere5or

T(e a/ove rue e4!ress: !rovides t(at t(e Court )a: ao6 a !art: u!on )otion to serve asu!!e)enta !eadin. a5ter reasona/e noti7e (as /een .iven t(e ot(er !art: T(e <uestion(ere t(en is 6(et(er t(at re<uire)ent o5 a reasona/e noti7e (as /een 7o)!ied 6it(

T(e Court o5 A!!eas 5ound, undis!uted /: !etitioner, t(at !etitioner 5ied t(e Motion to Fiet(e Su!!e)enta Co)!aint on "" Mar7( "1$; atta7(in. t(ereto a 7o!: o5 t(e su!!e)enta7o)!aint A 7o!: o5 t(e )otion 6as sent to BPI /: re.istered )ai on t(e sa)e da: /ut 6asre7eived /: t(e atter on: on "% Mar7( "1$; 8Re7ord, ! 0;"9 A da: earier (o6ever, "0Mar7( "1$;, t(e tria 7ourt (ad aread: issued an order .rantin. t(e )otion and ad)itted t(e

su!!e)enta 7o)!aint in t(e interest o5 sound ad)inistration o5 usti7e 8Roo, ! &19 T(etria ud.e ie6ise issued a te)!orar: restrainin. order to enoin BPI 5ro) !ro7eedin. 6it(An: e.a, 7ourt or ot(er a7tion a.ainst !ainti55 =Leo/rera> arisin. 5ro) Pro)issor: Note No2";-00#-2 8I/id9

It is di55i7ut to as7ri/e as reasona/e t(e a/ove des7ri/ed )anner in 6(i7( BPI 6asa!!rised o5 t(e !ro7eedin.s reative to t(e su!!e)enta 7o)!aint T(e undue (aste 6(i7(7(ara7teriHed t(e tria 7ourts ad)ission o5 t(e su!!e)enta 7o)!aint is at on7e a!!arent asno notice had as yet been received by B" 4hen the trial court issued the 56 ,arch 5789 order .rantin. t(e )otion to 5ie t(e su!!e)enta 7o)!aint and restrainin. BPI 5ro)5ore7osin. t(e )ort.a.e BPI earned o5 t(e e4isten7e o5 t(e )otion and t(e order .rantin. iton: on "% Mar7( "1$; B: t(en it 6as too ate 5or it to 7ontest t(e )otion

T(e ar/itrariness o5 t(e tria 7ourts ad)ission o5 t(e su!!e)enta 7o)!aint is /rou.(t to t(e5ore 6(en it is 7onsidered t(at t(e )otion to 5ie t(e su!!e)enta 7o)!aint 7ontained aninvaid noti7e o5 (earin. and a7ed !roo5 o5 its servi7e as re<uired /: Se7tion #, 3 and & o5 Rue "3 o5 t(e Revised Rues o5 Court T(is is a!!arent 5ro) a 7ursor: readin. o5 said Noti7eo5 earin. to 6it'

NOTICE OF EARING

T(e Cer o5 Court

GREETINGS'

Pease su/)it t(e 5ore.oin. )otion to t(e onora/e Court i))ediate: u!onre7ei!t t(ereo5 5or its due 7onsideration and a!!rova

=S.d> ISI*RO C ARRAGA

Co!: 5urnis(ed'

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Att: A5onso B +erHosaCounse 5or t(e *e5endant"3t( Foor, BPI Fa)i: Ban Center$;3% Paseo de Ro4asMaati, Metro Mania

8Roo, ! ;%9

T(e noti7e o5 (earin. is intended to !revent sur!rise and to a55ord t(e adverse !art: a 7(an7eto /e (eard /e5ore t(e )otion is resoved /: t(e tria 7ourt (ie t(e 7ourt (as said t(at aitera o/servan7e o5 t(e noti7e re<uire)ents in Se7tions #, 3 and & o5 Rue "3 is notne7essar:, a seasona/e servi7e o5 a 7o!: o5 t(e )otion on adverse !art: or 7ounse 6it( anoti7e o5 (earin. indi7atin. t(e time and place of hearing of the motion are )andator:re<uire)ents t(at 7annot /e dis!ensed 6it( as t(ese are t(e )ini)u) re<uire)ents o5 !ro7edura due !ro7ess 8I/asan v Re!u/i7, GR No #$30$, A!ri 03, "1$2, 1; SCRA "2"JEsti!ona v Navarro, GR No L- #"$03, ?anuar: %2, "1;&, &1 SCRA 0$3J Mania Suret: and

Fideit: Co, In7, v Bat( Constru7tion and Co, GR No "&&%&, ?une 0#, "1&3, "# SCRA#%39

It is evident 5ro) t(e noti7e t(at no ti)e and !a7e o5 (earin. o5 t(e )otion is indi7atedNeit(er does t(e re7ord revea t(at t(ere 6as !roo5 o5 servi7e atta7(ed to t(e )otion T(e)ini)u) re<uire)ents o5 !ro7edura due !ro7ess not (avin. /een satis5ied /: t(e noti7e, t(e)otion to 6(i7( it 6as atta7(ed is t(us a )ere s7ra! o5 !a!er not entited to an: 7o.niHan7e/: t(e tria 7ourt T(e Court o5 A!!eas t(us 7o))itted no reversi/e error in annuin. t(e "0Mar7( "1$; order o5 t(e tria 7ourt tainted as it 6as 6it( 7ear .rave a/use o5 dis7retion

As to t(e su!!e)enta 7o)!aint, 6(at ie6ise )iitates a.ainst its ad)ission is t(e 5a7t t(att(e )atters invoved t(erein are entire: di55erent 5ro) t(e 7auses o5 a7tion )entioned in t(eori.ina 7o)!aint

A su!!e)enta 7o)!aint s(oud, as t(e na)e i)!ies, su!!: on: de5i7ien7ies in aid o5 anori.ina 7o)!aint 8Britis( Traders Insuran7e Co)!an: v Co))issioner o5 Interna Revenue,GR No L-0232", A!ri %2,"1&3,"% SCRA ;0$9 It s(oud 7ontain on: 7auses o5 a7tionreevant and )ateria to t(e !ainti55s ri.(t and 6(i7( (e! or aid t(e !ainti55s ri.(t or de5ense8*e a Ra)a Stea)s(i! Co, In7 v Nationa *eveo!)ent Co)!an:, GR No L-"3&31,Nove)/er %2,"1&0,& SCRA ;;39 T(e su!!e)enta 7o)!aint )ust /e /ased on )attersarisin. su/se<uent to t(e ori.ina 7o)!aint reated to t(e 7ai) or de5ense !resented t(erein,and 5ounded on t(e sa)e 7ause o5 a7tion It 7annot /e used to tr: a ne6 )atter or a ne67ause o5 a7tion 8+ee Rando!( v Missouri-ansas-Te4as R Co, *C Mo "1#$, ;$ F Su!!;0;, Berssen/ru..e v Lu7e M5. Co, *C Mo "1%1,%2 F Su!! "2"9

(ie !etitioner 6oud !ersuade t(is Court t(at t(e 7auses o5 a7tion are interreated, t(ere7ord reveas ot(er6ise T(e re7ord s(o6s t(at !etitioners )ain 7ause o5 a7tion in t(eori.ina 7o)!aint 5ied in Civi Case No "3&## 7on7erned BPIs t(reat to 5ore7ose t6o reaestate )ort.a.es se7urin. t(e t6o 12 da: !ro)issor: notes e4e7uted /: !etitioner in "1$&Petitioner ae.es t(at t(is t(reatened 5ore7osure vioated t(e ter)s o5 t(e "1$2 a)i7a/esette)ent /et6een BPI and !etitioner

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T(e su!!e)enta 7o)!aint on t(e ot(er (and ae.ed a7ts o5 (arass)ent 7o))itted /: BPIin unreasona/: o!tin. to de7are !etitioner in de5aut and in de)andin. 5u i<uidation o5 t(e"1$3 t(ree-:ear ter) oan T(is t(ree-:ear ter) oan, as !revious: )entioned, 6as entire:distin7t and se!arate 5ro) t(e t6o !ro)issor: notes It 6as inde!endent o5 t(e "1$2 a)i7a/esette)ent /et6een !etitioner and BPI 6(i7( .ave rise to t(e 7redit 5a7iit: su/e7t o5 t(e

ori.ina 7o)!aint At(ou.( t(ere is Identit: in t(e re)edies ased 5or in t(e ori.ina andsu!!e)enta 7o)!aints, ie inun7tion, !etitioners su/se<uent 7ause o5 a7tion .ivin. rise tot(e 7ai) 5or da)a.es in t(e su!!e)enta 7o)!aint is unreated to t(e a)i7a/e sette)ent6(i7( /rou.(t a/out t(e .rant o5 t(e 7redit 5a7iities, t(e /rea7( o5 6(i7( sette)ent is ae.edto /e t(e /asis o5 t(e ori.ina 7o)!aint Petitioner (i)se5 in (is su!!e)enta 7o)!aintad)its t(is T(e su!!e)enta 7o)!aint states inter alia:

444 444 444

0 T(at aside 5ro) t(e oan o5 P $22,22222 6(i7( is !art and !ar7e o5 t(ea)i7a/e sette)ent entered into /: de5endant 5or its .ross ne.i.en7e and /ad

5ait( in 5aiin. to noti5: t(e !ainti55 o5 at east t(ree etters o5 7redit 6(i7( as aresut e4!ired 6it(out (avin. /een served /: t(e !ainti55, t(e !ainti55 o/tained5ro) t(e de5endant anot(er oan o5 P 322,22222 7overed /: PN ";-$3V200#-26(i7( 6as e4e7uted on or a/out Nove)/er "3, "1$3 !a:a/e 6it(in a !eriod o5 t(ree :ears 5ro) t(e date o5 e4e7ution 6it( a )ont(: a)ortiHation o5 P#",&&&&&

444 444 444

# T(at on or a/out Fe/ruar: "0, "1$;, t(e !ainti55 re7eived a etter 5ro)de5endant advisin. t(e 5or)er t(at /e7ause o5 t(e !ainti55s ae.ed 5aiure to)eet t(e a)ortiHation due on Fe/ruar: 1, "1$;, o5 PN 2";-200#-2 5or P322,22222 de5endant (ad e4er7ised its o!tion to a77eerate t(e )aturit: o5 t(ea77ount and de)anded t(e 5u i<uidation o5 t(e /aan7e o5 t(e a77ount 6(i7(6as P %%%,%%%%0 !us interest and !enaties on or /e5ore Fe/ruar: 0;, "1$;

444 444 444

& T(at on Nove)/er "0, "1$&, *arene S(es )ade a re)ittan7e to t(ede5endant in t(e a)ount o5 $,%321# 6it( t(e !ainti55 as /ene5i7iar: 6(i7( saida)ount i5 7redited to t(e !ainti55s /an a77ount 6it( t(e de5endant 6oud (ave)eant an additiona P "&2,22222, )ore or ess in said !ainti55s a77ount 6it(t(e de5endant /an and 6oud (ave /een )ore t(at su55i7ient to !a: o55 t(e P3#,22222 a)ortiHation due on Fe/ruar: 1, "1$;J

; T(at t(e de5endant, (o6ever, re5used to a77e!t t(e re)ittan7e on t(e 5i)s:e47use t(at t(e na)e o5 t(e /ene5i7iar: in t(e re)ittan7e 6as not Car5e S(eE4!ort /ut Car Saes S(e E4!ort and )ade an e)!t: )otion o5 tr:in. to veri5:6(o 6as t(e su!!osed /ene5i7iar: 6(en t(e de5endant 7oud ver: 6e (aveno6n and 5ound out t(at t(e /ene5i7iar: 6as indeed Car5e S(e E4!ort sin7e!ainti55 /ad e4!ort /usiness transa7tion 6it( de5endant 5or ten or so :ears and!ainti55 (ad /een asin. t(e de5endant /an o5 said re)ittan7e o5 *arene

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S(es )an: ti)esJ

$ T(at (ad t(e de5endant a77e!ted said a)ount o5 $,%321# !ainti55s a77ount6oud (ave in7reased /: P "12,22222 as o5 Nove)/er "%, "1$& 6(i7( 6oud(ave /een )ore t(at enou.( to 7over t(e 3#,22222 due on Fe/ruar: 1, "1$;J

1 T(at t(e de5endant t(ru )ai7ious a7ts and /ad 5ait( re5used to a77e!t t(e $,%321# 5or t(e reason adverted to a/ove

444 444 444

8Roo, !! ;#-;&9

As t(e ae.ations revea, t(e P 322,22222 t(ree-:ear ter) oan is a transa7tion inde!endento5 t(e P $22,22222 7redit 5a7iit: and BPIs <uestioned a7t o5 t(reatenin. to 5ore7ose t(e!ro!erties se7urin. said oan 6as t(e resut o5 an ae.ed de5aut /: !etitioner in t(e !a:)ent

o5 t(e a)ortiHation due 5or 1 Fe/ruar: "1$; and not /e7ause o5 an: 7ir7u)stan7e reated tot(e "1$2 a)i7a/e sette)ent

T(e t6o 7auses o5 a7tion /ein. entire: di55erent, t(e atter one 7oud not /e su77ess5u:!eaded /: su!!e)enta 7o)!aint

EREFORE, in vie6 o5 t(e 5ore.oin., t(e !etition is (ere/: *ENIE* T(e te)!orar:restrainin. order issued on 0$ O7to/er "1$; is (ere/: LIFTE*

SO OR*ERE*

'utierre! Jr. and Bidin JJ. concur.

#ernan C.J. too( no part.

8GR No "2;$0# ?u: 3, "11&9

SUPERCLEAN SER+ICES CORPORATION, petitioner vs COURT OF APPEALS andOME *E+ELOPMENT MUTUAL FUN*, respondents

* E C I S I O N

MEN*OA, J '

T(e <uestion in t(is 7ase is t(e !ro!riet: o5 5iin. a Su!!e)enta Co)!aint in order to see adi55erent reie5 in vie6 o5 deveo!)ents renderin. t(e ori.ina reie5 i)!ossi/e o5 attain)ent

T(e 5a7ts are as 5oo6s'

On Nove)/er $, "1$1, !etitioner Su!er7ean Servi7es 5ied 6it( t(e Re.iona Tria Court o5 Mania a 7o)!aint 5or ,andamusVCertiorari it( Prei)inar: Inun7tion AndVOr Restrainin.

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Order a.ainst !rivate res!ondent o)e *eveo!)ent and Mutua Fund Petitioner ae.edt(at at t(e !u/i7 /iddin. 5or anitoria servi7es 5or t(e :ear "112 it 6as t(e o6est or /est/idder,D /ut !rivate res!ondent re5used 6it(out ust 7ause to a6ard t(e 7ontra7t to it andinstead 7aused t(e !u/i7ation on O7to/er 0%, "1$1 o5 a Noti7e o5 Re/iddin. to /e (ed onNove)/er 1, "1$1

In its ans6er !rivate res!ondent de5ended its a7tion on t(e .round t(at not a sin.e /idsu/)itted 7o)!ied 6it( t(e ter)s and 7onditions a.reed u!on in t(e !re-/iddin. 7on5eren7e(ed on Se!te)/er &, "1$1

T(e tria 7ourt t(erea5ter set !etitioner@s a!!i7ation 5or !rei)inar: inun7tion 5or (earin. andin t(e )eanti)e ordered !rivate res!ondent to desist 5ro) 7ondu7tin. a re/iddin. At t(esa)e ti)e, t(e 7ourt .ranted eave to !rivate res!ondent on ?anuar: #, "112 to (ire anitoriaservi7es on a )ont(-to-)ont( /asis to insure t(e )aintenan7e o5 its o55i7es

On ?u: 0#, "11", !etitioner )oved 5or t(e ad)ission o5 a Su!!e)enta Co)!aintD8"9

Petitioner ae.ed t(at /e7ause t(e 7ontra7t o5 servi7es 6as 5or t(e 5urnis(in. o5 anitoriaservi7e 5or t(e !revious :ear "112, t(e dea: in t(e de7ision o5 t(e 7ase (ad rendered t(e7ase )oot and a7ade)i7 6it(out 8!etitioner9 o/tainin. 7o)!ete reie5 to redress t(e 6ron.7o))itted a.ainst it /: 8!rivate res!ondent9, 6(i7( reie5 7onsists in unreaiHed !ro5its,e4e)!ar: da)a.es and attorne:@s 5eesD A77ordin.:, instead o5 !ursuin. its !ra:er 5or a 6rito5 mandamus, !etitioner sou.(t t(e !a:)ent o5 da)a.es to it

On Au.ust 0%, "11", t(e tria 7ourt denied !etitioner@s )otion, 5indin. no )erit in and no/asis su!!ortin. itD and set t(e 7ontinuation o5 t(e tria on Se!te)/er "1, "11"

Petitioner 5ied a )otion 5or re7onsideration, /ut its )otion 6as ie6ise denied In its order dated Nove)/er 03, "11", t(e tria 7ourt said t(at ad)ission o5 t(e Su!!e)enta Co)!aintD6oud not on: radi7a: /ut su/stantia: 87(an.e9 t(e issuesD /: )ateria: var8:in.9 t(e.rounds o5 reie5, and 6oud o!erate unust: to t(e !reudi7e o5 t(e ri.(ts o5 8!rivateres!ondent9D

Petitioner 5ied a !etition 5or certiorari in t(e Court o5 A!!eas 6(i7(, on Au.ust 3, "110,rendered a de7ision, 5indin. no .rave a/use o5 dis7retion to (ave /een 7o))itted /: t(e tria7ourt in not ad)ittin. !etitioner@s Su!!e)enta Co)!aintD and den:in. t(e )otion 5or re7onsideration o5 its order Its ruin. 6as /ased on t(e 5a7t t(at t(e reie5 sou.(t in t(eSu!!e)enta Co)!aintD 6as di55erent 5ro) t(at 7ontained in t(e ori.ina 7o)!aint 6(i7(sou.(t to 7o)!e !rivate res!ondent to re7o.niHe !etitioner as t(e o6est <uai5:in. /idderIn addition, t(e a!!eate 7ourt (ed t(at t(e ori.ina 7o)!aint (ad /een rendered )oot anda7ade)i7 /: su!ervenin. events and t(at a su!!e)enta 7o)!aint 6as ina!!ro!riate sin7esu!!e)enta !eadin.s are )eant to su!!: t(e de5i7ien7: in aid o5 t(e ori.ina !eadin., notto entire: su/stitute t(e atterD

Petitioner )oved 5or a re7onsideration, /ut its )otion 6as denied in a resoution o5 t(e Courto5 A!!eas dated O7to/er %2, "110 en7e, t(is !etition 5or revie6 on certiorari

#irst. T(e Su!!e)enta Co)!aintD a!!ears to (ave /een 5ied under Rue "2 o5 t(e Rueso5 Court 6(i7( !rovides'

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W& ,atters +ub1ect of +upplemental "leadings U!on )otion o5 a !art: t(e 7ourt )a:,u!on reasona/e noti7e and u!on su7( ter)s as are ust, !er)it (i) to serve a su!!e)enta!eadin. settin. 5ort( transa7tions, o77urren7e or events 6(i7( (ave (a!!ened sin7e t(e dateo5 t(e !eadin. sou.(t to /e su!!e)ented I5 t(e 7ourt dee)s it advisa/e t(at t(e adverse!art: s(oud !ead t(ereto, it s(a so order, s!e7i5:in. t(e ti)e t(ere5or

T(e transa7tion, o77urren7e or event (a!!enin. sin7e t(e 5iin. o5 t(e !eadin., 6(i7( issou.(t to /e su!!e)ented, )ust /e !eaded in aid o5 a !art:@s ri.(t or de5ense as t(e 7ase)a: /e809 But in t(e 7ase at /ar, t(e su!ervenin. event is not invoed 5or t(at !ur!ose /ut to

usti5: t(e ne6 reie5 sou.(t

To /e.in 6it(, 6(at 6as ae.ed as a su!ervenin. event 7ausin. da)a.e to !etitioner 6as t(e5a7t t(at t(e :ear 5or 6(i7( t(e 7ontra7t s(oud (ave /een )ade (ad !assed 6it(out t(eresoution o5 t(e 7ase On: in7identa: 6as it 7ai)ed t(at /e7ause o5 t(e a6ard o5 a7ontra7t 5or anitoria servi7es, on a )ont(-to-)ont( /asis to a t(ird !art:, !etitioner 5aied toreaiHe !ro5its In its Su!!e)enta Co)!aintD !etitioner ae.ed'

" Su!ervenin. events not attri/uta/e to an:/od: 6(i7( 7onsist in t(e dea: in t(e ear:dis!osition o5 t(e 7ase 6it(in t(e one ="> :ear !eriod i5e s!an o5 t(e 7ontra7t 5or anitoriaservi7es, (ave rendered t(e 7ase moot and academic , 6it(out !ainti55 o/tainin. 7o)!etereie5 to redress t(e 6ron. 7o))itted a.ainst it /: de5endant, 6(i7( is t(e unusti5ied andVor una65u re5usa o5 de5endant to re7o.niHe !ainti55 as t(e o6est <uai5:in. /idder 5or anitoriaservi7es 5or t(e :ear 577; J

0 B: reason o5 t(e unusti5ied re5usa o5 de5endant to re7o.niHe t(e resut o5 t(e !u/i7/iddin. (ed in Se!te)/er "1$1 and to a6ard to !ainti55 t(e 7ontra7t 5or anitoria servi7es ast(e o6est <uai5:in. /idder 5avora/e and advanta.eous to t(e de5endant 5or t(e :ear "112,and /: (irin. anot(er entit: to !er5or) anitoria servi7es durin. t(e !enden7: o5 t(e suit,!ainti55 su55ered unreaiHed !ro5its in t(e su) o5 P"3$,"";0$J

T(e su!ervenin. event 6as t(ere5ore 7ited not to rein5or7e or aid t(e ori.ina de)and, 6(i7(6as 5or t(e e4e7ution o5 a 7ontra7t in !etitioner@s 5avor, /ut to sa: t(at, !re7ise: /e7ause o5 it,!etitioner@s de)and 7oud no on.er /e en5or7ed, t(us usti5:in. !etitioner in 7(an.in. t(ereie5 sou.(t to one 5or re7over: o5 da)a.es T(is /ein. t(e 7ase, !etitioner@s re)ed: 6asnot to su!!e)ent, /ut rat(er to a)end its 7o)!aint

Indeed t(e ne6 reie5 sou.(t =!a:)ent o5 da)a.es in ieu o5 an a6ard o5 t(e 7ontra7t 5or anitoria servi7es> is a7tua: an aternative re)ed: to 6(i7( !etitioner 6as entited even/e5ore at t(e ti)e o5 t(e 5iin. o5 its ori.ina 7o)!aint I5 !etitioner 6as entited to t(e a6ardo5 t(e 7ontra7t, as it 7ai)ed it 6as, it 7oud (ave ased eit(er 5or an a6ard o5 t(e 7ontra7t 5or

anitoria servi7es or 5or da)a.es T(e 5a7t t(at it o!ted 5or t(e 5irst does not !re7ude it 5ro)su/se<uent: 7ai)in. da)a.es /e7ause t(rou.( no 5aut o5 its o6n, t(e :ear !assed 6it(outan a6ard in its 5avor, 6it( t(e resut t(at it 7oud no on.er de)and t(e e4e7ution o5 a 7ontra7tin its 5avor a5ter t(at :ear

Be t(at as it )a:, t(e so-7aed Su!!e)enta Co)!aint 5ied /: !etitioner s(oud si)!: /etreated as e)/od:in. a)end)ents to t(e ori.ina 7o)!aint or !etitioner )a: /e re<uired to5ie an a)ended 7o)!aint

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+econd But, it is 7ontended, su7( an a)end)ent o5 t(e 7o)!aint 6oud 7(an.e t(e t(eor:o5 t(e 7ase T(ree reasons 6ere 7ited /: t(e Court o5 A!!eas 6(: it t(ou.(t t(e tria 7ourt7orre7t: re5used to ad)it t(e so-7aed Su!!e)enta Co)!aint o5 !etitioner' ="> 7(an.e int(e reie5s !ra:ed 5orJ =0> 7(an.e in t(e issues o5 t(e 7aseJ and =%> !reudi7e to t(e ri.(ts o5 !rivate res!ondent

T(e 7ontention (as no )erit An a)end)ent to 7(an.e t(e reie5 sou.(t does not 7(an.e t(et(eor: o5 a 7ase (at is !ro(i/ited is a 7(an.e in t(e 7ause o5 a7tion T(us in Arches v.<illarru! ,8%9 it 6as (ed'

T(e o6er 7ourt denied t(e ad)ission o5 t(e a)ended 7o)!aint on t(e .round t(at t(e!ainti55 t(erein (as 7(an.ed t(e a7tion ae.ed in t(e ori.ina 7o)!aint, /ut u!on 7o)!arin.t(e t6o 7o)!aints, 6e 5ind t(at, essentia:, t(ere 6as no 7(an.e o5 a7tion 5or, in /ot( t(eori.ina and t(e a)ended 7o)!aints, t(e a7tion 6as 5or t(e 7oe7tion o5 t(e vaue o5 t(esa)e !ro)issor: notes and t(e on: di55eren7e /et6een t(e ori.ina and t(e a)ended7o)!aints is 6it( re.ard to t(e 7onsideration o5 said !ro)issor: notes, 5or 6(ie in t(e

ori.ina 7o)!aint it 6as ae.ed t(at t(ese 6ere e4e7uted /: de5endant +iarruH 5or )one:o/tained 5ro) !ainti55 Ar7(es and 6it( 6(i7( t(e 5or)er !aid 5or a/or and )aterias 5or t(e7onstru7tion and 7o)!etion o5 t(e Ivisan Brid.e, in t(e a)ended 7o)!aint it 6as ae.edt(at said !ro)issor: notes 6ere e4e7uted 5or )aterias su!!ied to iia) +iarruH anda7tua: used in t(e 7onstru7tion o5 t(e Ivisan Brid.e (ie t(e rue ao6in. a)end)ents toa !eadin. is su/e7t to t(e .enera i)itation t(at t(e 7ause o5 a7tion s(oud not /esu/stantia: 7(an.ed or t(at t(e t(eor: o5 t(e 7ase s(oud not /e atered, in t(e 5urt(eran7eo5 usti7e, a)end)ents to a !eadin. s(oud /e 5avored and t(e rues t(ereon s(oud /ei/era: 7onstrued In t(e !resent 7ase, 6e 5ind usti5i7ation 5or ao6in. t(e ad)ission o5 t(ea)ended 7o)!aint in order t(at t(e rea <uestion /et6een t(e !arties )a: /e !ro!er: and

ust: t(res(ed out, in a sin.e !ro7eedin., and t(us avoid )uti!i7it: o5 a7tions

In <da. de <illaruel v. ,anila ,otor Co. nc.,8#9 !ainti55s, as essors o5 a !ro!ert:, 5ied ana7tion 5or t(e res7ission o5 t(e 7ontra7t o5 ease 5or ae.ed re5usa o5 de5endants to !a:rentas (ie t(e 7ase 6as !endin., t(e /uidin.s eased 6ere destro:ed /: 5ire Painti55s5ied a su!!e)enta 7o)!aint 5or t(e re7over: o5 t(e vaue o5 t(e /urned /uidin.s In(odin. t(e su!!e)enta 7o)!aint !ro!er, t(is Court (ed'

T(is a7tion 6as in7e!tiona: instituted 5or t(e res7ission o5 t(e 7ontra7t o5 ease and 5or t(ere7over: o5 un!aid rentas /e5ore and a5ter i/eration (en t(e eased /uidin.s 6eredestro:ed, t(e !ainti55s-essors de)anded 5ro) t(e de5endants-essees, instead, t(e vaue o5 t(e /urned !re)ises, /asin. t(eir ri.(t to do so on de5endants@ ae.ed de5aut in t(e !a:)ento5 !ost-i/eration rentas =6(i7( 6as aso t(eir /asis in 5or)er: seein. 5or res7ission> T(is7annot /e 7onsidered as aread: aterin. t(e t(eor: o5 t(e 7ase 6(i7( is )ere: a 7(an.e int(e reie5 !ra:ed 5or, /rou.(t a/out /: 7ir7u)stan7es o77urrin. durin. t(e !enden7: o5 t(ea7tion, and is not i)!ro!er =Sout(ern Pa7i5i7 Co vs Con6a:, ""3 F 0d ;#&J Su/ur/anI)!rove)ent Co)!an: vs S7ott Lu)/er Co, $; ALR 333, 31 F 0d ;""> T(e 5iin. o5 t(esu!!e)enta 7o)!aint 7an 6e /e usti5ied aso under Se7tion 0, Rue "; o5 t(e Rues o5 Court =on a)end)ents> to t(e end t(at t(e rea )atter in dis!ute and a )atters in t(e a7tionin dis!ute /et6een t(e !arties )a:, as 5ar as !ossi/e /e 7o)!ete: deter)ined in a sin.e!ro7eedin.D It is to /e noted 5urt(er)ore, t(at t(e ad)ission or ree7tion o5 t(is ind o5 !eadin.s is 6it(in t(e sound dis7retion o5 t(e 7ourt t(at 6i not /e distur/ed on a!!ea in t(e

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a/sen7e o5 a/use t(ereo5 =see Se7 3, Rue ";, Rues o5 Court>, es!e7ia: so, as in t(is 7ase,6(ere no su/stantia !ro7edura !reudi7e is 7aused to t(e adverse !art:839

In t(is 7ase, t(e ori.ina 7o)!aint 5or ,andamusVCertiorari it( Prei)inar: Inun7tion AndVOr Restrainin. Order ae.ed, as 7ause o5 a7tion, !rivate res!ondent@s unusti5ia/e

re5usa to a6ard t(e 7ontra7t to !etitioner des!ite t(e 5a7t t(at t(e atter 6as t(e o6est and/est <uai5:in. /idderD On t(e /asis o5 t(is ae.ation, it 6as !ra:ed t(at'

" U!on 5iin. 8o59 t(is Co)!aint, a restrainin. order /e issued to enoin 8!rivateres!ondent9 5ro) i)!e)entin. 8or9 !ro7eedin. 6it( its Noti7e o5 Re/iddin. 6(i7( iss7(edued on Nove)/er 1, "1$1 at "2'22 AMJ

0 A5ter tria on t(e )erits, ud.)ent /e rendered

a orderin. 8!rivate res!ondent9 to re7o.niHe 8!etitioner9 as t(e o6est <uai5:in.res!onsive /idder at t(e !u/i7 /iddin. (ed on Se!te)/er 00, "1$1 and t(ere5ore

its ri.(t to t(e a6ard o5 t(e 7ontra7t 5or anitoria servi7esJ

/ de7arin. t(at 8!rivate res!ondent9 in !u/is(in. its Noti7e o5 Re/iddin.D a7ted 6it(.rave a/use o5 dis7retion a)ountin. to e47ess andVor a7 o5 urisdi7tionJ

7 de7arin. t(e restrainin. order or te)!orar: 6rit o5 inun7tion to /e !er)anentJ and

d 5or 7osts o5 suit

T(ese sa)e ae.ations 7onstitute !etitioner@s 7ause o5 a7tion 5or da)a.es, to 6it'

" t(e su) o5 P"3$,"";0$ as unreaiHed !ro5itsJ

0 t(e su) o5 P32,22222 as e4e)!ar: da)a.esJ

% t(e su) e<uivaent to t6ent:-5ive =03Q> !er7ent o5 t(e tota a)ount due and de)anda/e,!us P",22222 5or ever: a!!earan7e o5 7ounse in 7ourtJ

# t(e 7osts o5 suit

As aread: stated, t(e 7(an.e in t(e reie5 sou.(t 6as ne7essitated /: a su!ervenin. event6(i7( rendered t(e 5irst reie5 sou.(t i)!ossi/e o5 attain)ent

Be7ause t(e 7ause o5 a7tion on 6(i7( t(e 7o)!aint 5or )anda)us and inun7tion and t(e so-7aed Su!!e)enta Co)!aint are /ased is one and t(e sa)e, t(e issue raised is t(e sa)e,na)e:, 6(et(er !rivate res!ondent 6as usti5ied in re5usin. to a6ard t(e 7ontra7t 5or anitoriaservi7es to !etitioner

Nor 6oud ad)ission o5 t(e a)ended 7o)!aint !reudi7e t(e ri.(ts o5 !rivate res!ondent asde5endant in t(e a7tion /eo6, as t(e Court o5 A!!eas (ed Indeed neit(er t(e tria 7ourt nor t(e a!!eate 7ourt s(o6ed in 6(at 6a: t(e ri.(ts o5 !rivate res!ondent 6oud /e !reudi7ed

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/: t(e ao6an7e o5 t(e a)end)ent in <uestion T(ere 6i /e no un5airness or sur!rise to!rivate res!ondent, /e7ause a5ter a !rivate res!ondent 6i (ave a ri.(t to 5ie an a)endedans6er and !resent eviden7e in su!!ort t(ereo58&9

=hird T(e Court o5 A!!eas aso (ed t(at t(e a7tion 5or mandamus andVor inun7tion (ad

/e7o)e )oot and a7ade)i7 and 7onse<uent: t(ere 6as no on.er an: 7o)!aint to /esu!!e)ented It is true t(at a su!!e)enta or an a)ended !eadin. !resu!!oses t(ee4isten7e o5 a !eadin. (at 6as rendered )oot and a7ade)i7, (o6ever, 6as not!etitioner@s 7ause o5 a7tion /ut on: its !ra:er 5or t(e 6rit o5 )anda)us T(ere 6as sti anaternative re)ed: e5t to !etitioner o5 seein. da)a.es in ieu o5 an a6ard o5 t(e 7ontra7tT(e situation is si)iar to an a7tion 5or ie.a dis)issa in a/or a6 I5 reinstate)ent is noon.er !ossi/e, /e7ause t(e !osition (as /een a/ois(ed and t(ere is no 6a: t(e dis)issede)!o:ee 7an /e reinstated to a 7o)!ara/e !osition, t(e e)!o:ee@s a7tion is not t(ere/:rendered )oot and a7ade)i7 e 7an instead as 5or se!aration !a:

Indeed, 6(at is i)!ortant is t(at, as aread: stated, t(e /asi7 ae.ations o5 5a7t in t(e ori.ina

and in t(e a)ended 7o)!aints are t(e sa)e, na)e:, t(at !rivate res!ondent, 6it(out usti5i7ation, re5used to a6ard t(e 7ontra7t o5 servi7es to !etitioner T(rou.( no 5aut o5 !etitioner, t(e :ear 5or 6(i7( anitoria servi7es 6ere to /e rendered e4!ired 6it(out t(eresoution o5 !etitioner@s 7ase It 6oud /e to e4at te7(ni7ait: over su/stan7e to re<uire t(at!etitioner 5ie a ne6 7o)!aint It 6oud /est serve t(e interests o5 usti7e i5 t(e so-7aedSu!!e)enta Co)!aint is si)!: 7onsidered as e)/od:in. a)end)ents to t(e ori.ina7o)!aint In 5a7t it a!!ears t(at t(e 7ourt ordered a 7ontinuation o5 t(e tria on Se!te)/er "1, "11", des!ite !etitioner@s state)ent in its Su!!e)enta Co)!aint t(at t(e ori.ina 7ase(ad /e7o)e )oot and a7ade)i7

WHEREFORE, t(e de7ision o5 t(e Court o5 A!!eas is RE+ERSE* and t(e 7ase isREMAN*E* to t(e tria 7ourt 6it( instru7tions to ad)it t(e Su!!e)enta Co)!aintD and totreat it as an a)end)ent to t(e ori.ina 7o)!aint or to re<uire !etitioner to 5ie an a)ended7o)!aint, )er.in. t(e reevant ae.ations o5 its ori.ina 7o)!aint and Su!!e)entaCo)!aint,D and t(erea5ter to ao6 !rivate res!ondent to 5ie an ans6er

SO OR*ERE*

Re.aado, =C(air)an>, Ro)ero, and Puno, ??, 7on7ur

Torres, ?r, ?, too no !art

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