cases for consolidation -demurer of evidence.docx

8/21/2019 Cases for Consolidation -Demurer of evidence.docx

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Republic of the PhilippinesSUPREME COURTManila

SECOND DIVISION

G.R. No. 8!" #eb$ua$% &' ())!

*CTIVE +OOD PRODUCTS CO.' INC.' petitione$,s.-ON. COURT O# *PPE*S' ST*TE INVESTMENT -OUSE' INC.'an/ *TT0. VICTORINO P. EV*NGEIST*' E12O3cio' She$i4 of Malolos' 5ulacan' $espon/ents.

Sotto 6 Sotto a7 O3ces fo$ petitione$.

a$/ele9a' Sob$e,inas Dia9' -a%u/ini 6 5o/e:on fo$$espon/ent SI-I.

S*RMIENTO' .;

This is a petition fo$ $e,ie7 on ce$tio$a$i of a /ecision$en/e$e/ b% the Cou$t of *ppeals in RC Case No. P2")28< of 5$anch =IV. (

The facts na$$ate/ in the /ecision of the Cou$t of *ppeals

a$e accu$ate.

Respon/ent u/:e e:aspi is the p$esi/in: >u/:e of 5$anch== 7he$e Ci,il Case No. &(82M is pen/in:. RC Case No. P2")28< is pen/in: in 5$anch =IV p$esi/e/ o,e$ b% u/:e#elipe N. Villa>uan' $.

The RC Case No. P2")28< 7as initiate/ b% the p$i,ate$espon/ent State In,est?ent -ouse' Inc.' 7hen it @le/ apetition fo$ the issuance of a 7$it of possession o,e$ *cti,e

+oo/As t7o pa$cels of lan/ co,e$e/ b% TCT Nos. BB) an/BB) of the Re:iste$ of Dee/s of 5ulacan.

The ?o$t:a:e on those lan/s 7hich *cti,e +oo/ ha/constitute/ in fa,o$ of State In,est?ent to secu$e anin/ebte/ness 7as fo$eclose/ an/ the lan/s auctione/ o4 toState In,est?ent as the hi:hest bi//e$. The ce$ti@cate of sale issue/ to State In,est?ent 7as $e:iste$e/ onDece?be$ B' ()8".

In ,ie7 of the fo$eclosu$e' *cti,e +oo/ @le/ Ci,il Case No.

&(8M 7ith the cou$t a uo' 7hich b% its o$/e$ /ate/#eb$ua$% B' ()8< /ecla$e/ as null an/ ,oi/ the fo$eclosu$ean/ State In,est?entAs ce$ti@cate of sale.

On #eb$ua$% (uanAs 5$anch =IV fo$ theconsoli/ation of sai/ case 7ith Ci,il Case No. &(82Mpen/in: in $espon/ent u/:eAs 5$anch ==. Mo$eo,e$' *cti,e

+oo/ @le/ a ?otion in sai/ RC Case No. P2")28< to /is?issan/Fo$ suspen/ the p$ocee/in:s of that case until 5$anch


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== $esol,e/ the issue of ,ali/it% of the ?o$t:a:e $aise/ inCi,il Case No. &(82M.

*ctin: on *cti,e +oo/As ?otions' u/:e Villa>uan of 5$anch=IV' in his o$/e$ /ate/ ul% (' ()8&' hel/ in abe%ance$esolution of State In,est?entAs petition fo$ the +$it of Possession an/ /i$ecte/ that sai/ RC Case No. P2")28<pen/in: in his b$anch be consoli/ate/ 7ith Ci,il Case No.

&(82M pen/in: in $espon/ent u/:eAs b$anch p$o,i/e/ thelatte$ 7oul/ not ob>ect.

On No,e?be$ B8' ()8&' the $espon/ent u/:e issue/ hisne7 assaile/ o$/e$ $etu$nin: the RC Case No. P2")28< to5$anch =IV ob,iousl% si:nif%in: his ob>ection to thep$opose/ consoli/ation of that case 7ith the case pen/in:in his b$anch. *cti,e +oo/As ?otion fo$ $econsi/e$ation of the o$/e$ /en%in: consoli/ation 7as also /enie/ b%$espon/ent u/:e in his no7 secon/ challen:e/ o$/e$ of

anua$% )' ()8&. B

One fact 7as o,e$looe/ b% the $espon/ent cou$t thatCi,ilCase No. &(82M 7as @le/ b% the petitione$ he$ein on une' ()8B' ?uch ahea/ than the @lin: b% the p$i,ate$espon/ent on #eb$ua$% (' ()8


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Thus in the case at ba$' this technical /i4e$ence bet7eenan action an/ a p$ocee/in: beco?es insi:ni@cant an/consoli/ation beco?es a lo:ical conclusion.

The consoli/ation of cases beco?es ?an/ato$% because itin,ol,es the sa?e pa$ties an/ the sa?e sub>ect ?atte$7hich is the sa?e pa$cel of lan/. 8 Such consoli/ation is/esi$able to a,oi/ confusion an/ unnecessa$% costs an/

e1penses 7ith the ?ultiplicit% of suits. Thus the $ules /o not/istin:uish bet7een cases @le/ befo$e the sa?e b$anch o$ >u/:e an/ those that a$e pen/in: in /i4e$ent b$anches' o$befo$e /i4e$ent >u/:es of the sa?e cou$t' in o$/e$ thatconsoli/ation ?a% be p$ope$' as lon: as the cases in,ol,ethe $esolution of uestions of la7 o$ facts in co??on 7itheach othe$. The$efo$e it appea$s that the $espon/ent cou$tin /en%in: the ?otion fo$ consoli/ation' has sanctione/ the/epa$tu$e of the t$ial cou$t f$o? the usual cou$se of >u/icialp$ocee/in:s' thus callin: fo$ the e1e$cise of the po7e$ of

supe$,ision of the Sup$e?e Cou$t. The $espon/ent cou$thas' in/ee/' co??itte/ a $e,e$sible e$$o$.

Consoli/ation of these t7o cases in 5$anch ==' in 7hich theea$lie$ case @le/ no7 pen/s' is ?o$e p$o?oti,e of thei$e1pe/itious an/ less e1pensi,e /ete$?ination as 7ell as theo$/e$l% a/?inist$ation of >ustice than if the% 7e$e to $e?ainin the t7o b$anches of the sa?e cou$t.

E,en in the Sup$e?e Cou$t 7hich sits en banc o$ in th$ee

/i,isions' the consoli/ation of cases 7ith issues of fact o$la7 inti?atel% o$ substantiall% $elate/ pen/in: in the sa?e/i,ision o$ in /i4e$ent /i,isions' an/ en banc' be the%assi:ne/ to the sa?e ponente o$ to /i4e$ent ponentes isp$acticall% :i,en o$ conce/e/ to the ponente assi:ne/ tothe case 7ith the lo7e$ nu?be$' i.e.' the one @le/ ea$lie$.+e ha,e foun/ this p$actice bene@cial an/ /esi$able f$o?the $esults. +e thin the sa?e a/,anta:e 7oul/ acc$ue tothe lo7e$ cou$ts if the% a/he$e to this p$oce/u$e.

The /ela% in the /ete$?ination of the cont$o,e$s% inti?ate/b% the $espon/ent is all in the ?in/. One >u/:e 7oul/ be

able to $esol,e the /i4e$ent aspects of these cases 7ith?o$e /ispatch an/ acco$/ than t7o >u/:es.

+-ERE#ORE' the petition is GR*NTED the Decisionp$o?ul:ate/ on No,e?be$ BB'()88 an/ the O$/e$ issue/on anua$% (!' ()8)' both b% the $espon/ent Cou$t of *ppeals' a$e SET *SIDE Ci,il Case No. &(82M an/ RCCase No. P2")28< a$e consoli/ate/ in 5$anch == of the

Re:ional T$ial Cou$t' Thi$/ u/icial Re:ion' at Malolos'5ulacan' fo$ hea$in: an/ p$ope$ /isposition 7ithoutunnecessa$% /ela%.

Costs a:ainst the p$i,ate $espon/ent.

SO ORDERED.

Melencio2-e$$e$a' Pa$as an/ Re:ala/o' .' concu$.

Pa/illa' .' too no pa$t.


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#IRST DIVISION

KG.R. No. 2ect of p$oce/u$e is to ?ae thepo7e$s of the cou$t full% an/ co?pletel% a,ailable fo$

>ustice. The ?ost pe$fect p$oce/u$e that can be /e,ise/ isthat 7hich :i,es oppo$tunit% fo$ the ?ost co?plete an/pe$fect e1e$cise of the po7e$s of the cou$t 7ithin theli?itations set b% natu$al >ustice. It is that one 7hich' in

othe$ 7o$/s' :i,es the ?ost pe$fect oppo$tunit% fo$ thepo7e$s of the count to t$ans?ute the?sel,es into conc$eteacts of >ustice bet7een the pa$ties befo$e it. The pu$pose of such a p$oce/u$e is not to $est$ict the >u$is/iction of thecou$t o,e$ the sub>ect ?atte$' but to :i,e it e4ecti,e facilit%in $i:hteous action. The pu$pose of p$oce/u$e is not toth7a$t >ustice. Its p$ope$ ai? is to facilitate the applicationof >ustice to the $i,al clai?s of conten/in: pa$ties. It 7asc$eate/ not to hin/e$ an/ /ela% but to facilitate an/p$o?ote the a/?inist$ation of >ustice. It /oes not constitute

the thin: itself 7hich cou$ts a$e al7a%s st$i,in: to secu$e toliti:ants. It is /esi:ne/ as the ?eans best a/apte/ to obtainthat thin:. In othe$ 7o$/s' it is a ?eans to an en/. It is the?eans b% 7hich the po7e$s of the cou$t a$e ?a/e e4ecti,ein >ust >u/:?ents. +hen it loses the cha$acte$ of the onean/ taes on that of the othe$ the a/?inist$ation of >usticebeco?es inco?plete an/ unsatisfacto$% an/ la%s itself opento :$a,e c$iticis?.H Manila Rail$oa/ Co. ,. *tto$ne%2Gene$al'B! Phil. &B"

D E C I S I O N

ESCOIN' .;

* petition fo$ ce$tio$a$i to set asi/e the /ecision of theInte$?e/iate *ppellate Cou$t in C*2G.R. No. SP2!!!8entitle/ HSupe$lines T$anspo$tation Co.' Inc.' Et. *l. ,e$sus

-on. uis . Victo$' Et *l.'H 7hich a3$?e/ the o$/e$s /ate/Ma$ch B8 an/ *p$il B' ()8" of he$ein $espon/ent u/:euis . Victo$ in Ci,il Case No. N2


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Cou$t of Ca,ite' entitle/ HTi?otea T. Mo$al/e' Et. *l. ,e$susPant$anco South E1p$ess' Inc.' Et. *l.Hc$ala7 ,i$tua(a7lib$a$%

On Dece?be$ ()' ()8B' 5us No. "!!8 of the Pant$ancoSouth E1p$ess' Inc.' Pant$anco fo$ sho$t' /$i,en b% Ro:elioDillo?as' colli/e/ 7ith 5us No. ""( of the Supe$lines

T$anspo$tation Co.' Inc.' Supe$lines fo$ sho$t' then /$i,en b%

E$lito o$ca alon: the hi:h7a% at u?ilan:' Calaua:'ue9on' $esultin: in the instantaneous /eath of Ca%etano P.Mo$al/e' S$.' a passen:e$ in the Pant$anco bus.c$ala7na/

On anua$% unction' 7hich petition' ho7e,e$' 7as /enie/

/ue cou$se. -ence' this p$esent $ecou$se.

It is su::este/ b% petitione$s that p$i,ate $espon/entsMo$al/es shoul/ pu$sue thei$ clai? fo$ /a?a:es b%inte$,enin: in the Gu?aca action' pu$suant to Sec. B' Rule(B of the Rules of Cou$t an/ in the li:ht of Municipalit% of -a:ono% ,. Sec$eta$% of *:$icultu$e an/ Natu$al Resou$cesK" SCR* &!L an/ O$ellano ,. *l,esti$ K SCR* &"L. It isconten/e/ that since the $i:ht of p$i,ate $espon/ents toclai? /a?a:es is foun/e/ on the sa?e facts in,ol,e/ in the

Gu?aca action' an% >u/:?ent $en/e$e/ the$ein 7ill a?ountto $es >u/icata in the Ca,ite case' fo$ 7hate,e$ a/>u/icationis ?a/e in the fo$?e$ case bet7een Pant$anco an/Supe$lines as $e:a$/s eithe$ of the pa$tiesQ culpabilit% 7oul/set sai/ issue at $est. #u$the$?o$e' such inte$,ention 7oul/p$e,ent ?ultiplicit% of suits an/ a,oi/ confusion that ?a%a$ise shoul/ the t$ial cou$ts $en/e$ conJictin:/ecisions.chan$obles,i$tuala7lib$a$%

Petitione$sQ stan/ is consistent 7ith ou$ $ulin: in the case of

Ma$apao ,. Men/o9a' (() SCR* )' 7he$e +e hel/that;>:c;chan$obles.co?.ph

H+hile $espon/ent Castillo has not been i?plea/e/ in the5ohol case' she has si?ila$ inte$ests as -otel /e Me$ce/es'the /efen/ant the$ein 7hich is he$ e?plo%e$. Petitione$ an/p$i,ate $espon/ent both clai? /a?a:es base/ on the sa?einci/ent. * /ecision' 7hethe$ in fa,o$ of petitione$ o$ p$i,ate$espon/ent in the 5ohol case 7oul/ a?ount to $es >u/icatain the Cebu case. Da?a:es in fa,o$ of one pa$t% 7oul/

p$eclu/e /a?a:es in fa,o$ of the othe$.


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HThe$e is an a//itional $eason fo$ /is?issal an/ that is' toa,oi/ ?ultiplicit% of suits. *:o Ti?be$ Co. ,. -on. Rui9' Et*l.' B( SCR* ("8 () E$lan:e$ ,. Villa?o$' )8 Phil. (!!"()& Teo/o$o' $. ,. Mi$asol' )) Phil. (&! ()&.

HTo p$otect the inte$ests of $espon/ent e?plo%ee' she ?a%inte$,ene as a pa$t% in the 5ohol case an/ @le acounte$clai? fo$ /a?a:es a:ainst petitione$.Hc$ala7

,i$tua(a7 lib$a$%

The$e is' ho7e,e$' a ?o$e p$a:?atic solution to thecont$o,e$s% at ba$ an/ that is to consoli/ate the Gu?acacase 7ith the Ca,ite case. Consi/e$ations of >u/icialecono?% an/ a/?inist$ation' as 7ell as the con,enience of the pa$ties fo$ 7hich the $ules on p$oce/u$e an/ ,enue7e$e fo$?ulate/' /ictate that it is the Ca,ite cou$t' $athe$than the Gu?aca cou$t' 7hich se$,es as the ?o$e suitablefo$u? fo$ the /ete$?ination of the $i:hts an/ obli:ations of

the pa$ties conce$ne/.

*s obse$,e/ b% both the t$ial an/ appellate cou$ts' to$eui$e p$i,ate $espon/ents 7ho a$e all $esi/ents of a7it'Ca,ite' to liti:ate thei$ clai?s in the ue9on Cou$t 7oul/unnecessa$il% e1pose the? to consi/e$able e1penses. Onthe othe$ han/' no lie p$e>u/ice 7oul/ befall the/efen/ants t$anspo$tation co?panies if the% 7e$e $eui$e/to plea/ thei$ causes in Ca,ite' fo$ such chan:e of ,enue7oul/ not e1pose the? to e1penses 7hich the% a$e not

al$ea/% liable to incu$ in connection 7ith the Gu?aca case. The ob>ection inte$pose/ b% Supe$lines that it has its o3cesin *ti?onan' ue9on' shoul/ not /et$act f$o? the o,e$allcon,enience a4o$/e/ b% the consoli/ation of cases in theCa,ite Cou$t. #o$ apa$t f$o? the fact that petitione$ an/ its/$i,e$ a$e $ep$esente/ b% the sa?e counsel 7ith o3ceslocate/ in Manila' /efen/ants t$anspo$tation co?panies can$ea/il% a,ail of thei$ facilities fo$ con,e%in: thei$ 7itnessesto the place of t$ial.chan$obles ,i$tual la7lib$a$%

The o$/e$e/ consoli/ation of cases' to ou$ ?in/' c$%stalli9esinto $ealit% the thinin: of ou$ p$e/ecesso$sthat;>:c;chan$obles.co?.ph

H. . . The 7hole pu$pose an/ ob>ect of p$oce/u$e is to ?aethe po7e$s of the cou$t full% an/ co?pletel% a,ailable fo$

>ustice. The ?ost pe$fect p$oce/u$e that can be /e,ise/ isthat 7hich :i,es oppo$tunit% fo$ the ?ost co?plete an/pe$fect e1e$cise of the po7e$s of the cou$t 7ithin theli?itations set b% natu$al >ustice. It is that one 7hich' inothe$ 7o$/s' :i,es the ?ost pe$fect oppo$tunit% fo$ the

po7e$s of the cou$t to t$ans?ute the?sel,es into conc$eteacts of >ustice bet7een the pa$ties befo$e it. The pu$pose of such a p$oce/u$e is not to $est$ict the >u$is/iction of thecou$t o,e$ the sub>ect ?atte$' but to :i,e it e4ecti,e facilit%in $i:hteous action. It ?a% be sai/ in passin: that the ?ostsalient ob>ection 7hich can be u$:e/ a:ainst p$oce/u$eto/a% is that it so $est$icts the e1e$cise of the cou$tQspo7e$s b% technicalities that pa$t of its autho$it% e4ecti,efo$ >ustice bet7een the pa$ties is ?an% ti?es aninconsi/e$able po$tion of the 7hole. The pu$pose of

p$oce/u$e is not to th7a$t >ustice. Its p$ope$ ai? is tofacilitate the application of >ustice to the $i,al clai?s of conten/in: pa$ties. It 7as c$eate/ not to hin/e$ an/ /ela%but to facilitate an/ p$o?ote the a/?inist$ation of >ustice. It/oes not constitute the thin: itself 7hich cou$ts a$e al7a%sst$i,in: to secu$e to liti:ants. It is /esi:ne/ as the ?eansbest a/apte/ to obtain that thin:. In othe$ 7o$/s' it is a?eans to an en/. It is the ?eans b% 7hich the po7e$s of the cou$t a$e ?a/e e4ecti,e in >ust >u/:?ents. +hen itloses the cha$acte$ of the one an/ taes on that of the

othe$ the a/?inist$ation of >ustice beco?es inco?plete an/unsatisfacto$% an/ la%s itself open to :$a,e c$iticis?.HManila Rail$oa/ Co. ,. *tto$ne%2Gene$al' B! Phil. &B"

+-ERE#ORE' the instant petition is he$eb% /enie/. Ci,ilCase No. ((2G of the Re:ional T$ial Cou$t of ue9on ishe$eb% o$/e$e/ consoli/ate/ 7ith Ci,il Case No. N2


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SO ORDERED.


8/54

#IRST DIVISION

STEE CORPOR*TION O# T-E P-IIPPINES'Petitione$'

2 ,e$sus 2

EUIT*5E PCI 5*N' INC.'no7 no7n as 5DO UNI5*N' INC.'Respon/ent.122222222222222222222222222222222222222222221DEG DEUTSC-E INVESTITIONS2UNDENT+ICUNGSGESESC-*#T M5-'Petitione$'

2 ,e$sus 2

EUIT*5E PCI 5*N' INC.' no7 no7n as 5DO UNI5*N'INC. an/ STEE CORPOR*TION O# T-E P-IIPPINES'Respon/ents.

G.R. No. ()!


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In its Inte$i? #inancial State?ent as of Dece?be$ "(' B!!&'SCPs total assets a?ounte/ to PhP (!'))'&&('(B"' 7hileits liabilities a?ounte/ to PhP 8'"&'!)'8


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. *ll e1istin: supplie$s c$e/its sub>ect to @nal,ali/ation shall ha,e B options;

a. To be pai/ ua$te$l% o,e$ a pe$io/ of & %ea$s 7ithoutinte$est' o$

b. To continuousl% suppl% the co?pan% on the pa%2$e2a,ail Deli,e$ sa?e a?ount pai/ basis.

8. *ll loans' supplie$s c$e/it an/ othe$ SCP liabilities a$esub>ect to @nal ,e$i@cation once the $eco??en/e/$ehabilitation plan is app$o,e/.

The $ehabilitation plan $eco??en/e/ b% *tt%. Gabion9a hasth$ee " phases in the i?ple?entation of the p$opose/P".& 5illion f$esh euit% infusion' thus;

Phase (

SCPs a$ticles of inco$po$ation an/ b% la7s shall be a?en/e/to acco??o/ate the a//itional euit% of P".& 5illion. Thep$esent stochol/e$s of SCP shall be :i,en si1t% ! /a%sf$o? app$o,al of the plan to eep thei$ stochol/in:s SCPb% $aisin:Fsou$cin: the P".& 5illion f$esh euit% $eui$e/.

Phase B

In the e,ent the p$esent stochol/e$s fail to $aise the P".&

5illion f$esh euit% nee/e/ to eep thei$ stochol/in:s an/sa,e thei$ co?pan%' *tt%. Gabion9a shall o4e$ to acceptablein,esto$s' th$ou:h ne:otiate/ sale o$ bi//in:' of SCPfo$ the P".& 5illion f$esh euit% $eui$e/.

Phase "

Shoul/ Phase ( an/ B fail' the$e shall be a /ebt to euit%con,e$sion in the $eui$e/ a?ount of P".& 5illion.K&L

*lthou:h not $eui$e/ b% the $ules' se,e$al consultati,e?eetin:s 7e$e the$eafte$ con/ucte/ b% the RehabilitationCou$t bet7een an/ a?on: the pa$ties to /iscuss a ,iable$ehabilitation plan fo$ SCP that is acceptable to all.

In co?pliance 7ith the /i$ecti,es of the Rehabilitation Cou$tto consi/e$ all the inputs an/ obse$,ations ?a/e b% thepa$ties /u$in: the consultati,e ?eetin:s an/ to ?ae thenecessa$% ?o/i@cation in his $eco??en/ations on thesub?itte/ $ehabilitation plans' *tt%. Gabion9a sub?itte/ aMo/i@e/ Rehabilitation Plan as inco$po$ate/ in hisco?pliance /ate/ une B' B!!. The ?o/i@cations ?a/e7e$e;

Phase ( of the Reco??en/e/ Rehabilitation Plan is $etaine/un/e$ the Mo/i@e/ Rehabilitation Plan. Phase B' ho7e,e$' isa?en/e/ to the e4ect that in the e,ent the p$esent

stochol/e$s fail to $aise the P".& 5illion f$esh euit%nee/e/ to eep thei$ stochol/in:s an/ sa,e thei$co?pan%' the sa?e e1istin: stochol/e$s of SCP shall bea4o$/e/ a pe$io/ of ! /a%s f$o? the e1pi$ation of thepe$io/ p$o,i/e/ in Phase ( to o4e$ fo$ sale to an acceptablein,esto$ at least stochol/in:s in SCP fo$ an a?ountnot less than P".& 5illion.

Un/e$ Phase " the$eof' the$e shall be a /ebt to euit%con,e$sion in the $eui$e/ a?ount of P".& 5illion shoul/

Phase ( an/ B fail. The a/>uste/ boo ,alue of SCP un/e$ itsB!!& *u/ite/ #inancial State?ents is pe::e/ at P(.(B)5illion. *cco$/in:l%' P(.(.B) 5illion of the e1istin: /ebt 7illinitiall% be con,e$te/ into co??on sha$es achie,in: ano7ne$ship st$uctu$e 7he$e both e1istin: stochol/e$s an/the ban c$e/ito$s 7ill euall% o7n SCP at &! each. Thebalance of PB."( 5illion 7ill then be con,e$te/ into non2inte$est bea$in: con,e$tible notes.KL

On une B(' B!!' 5DO2EPCI5' >oine/ b% c$e/ito$s DEG'

Plante$s De,elop?ent 5an' China 5anin: Co$po$ation'*siat$ust De,elop?ent 5an an/ GE Mone% 5an' Inc.'alto:ethe$ hol/in: ?o$e than &! of SCPs total liabilities'


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@le/ thei$ oint Manifestation an/ Motion /ecla$in: thei$confo$?it% 7ith an/ suppo$t to *tt%. Gabion9asReco??en/e/ Rehabilitation Plan.

On ul% "!' B!!' SCP sub?itte/ its B!! *u/ite/ #inancialState?ents in a Co?pliance 7ith Motion. *tt%. Gabion9a7as o$/e$e/ b% the Rehabilitation Cou$t to stu/% the@nancial state?ents an/ to sub?it a $epo$t on thei$ e4ectson the Mo/i@e/ Rehabilitation Plan.

The pa$ties then sub?itte/ thei$ $especti,e co??ents onthe Mo/i@e/ Rehabilitation Plan an/ *tt%. Gabion9as $epo$ton the e4ects of the B!! *u/ite/ #inancial State?ents.ie7ise' SCP sub?itte/ its Up/ate/ Counte$ RehabilitationPlan' attache/ to its */ *bun/ante Cautela? Motion to*/?it Debto$ SCPs Up/ate/ Counte$ Rehabilitation Plan'7hich 7as subseuentl% a/?itte/ b% the RehabilitationCou$t.

On Dece?be$ "' B!!' the RTC p$o?ul:ate/ a Decisionapp$o,in: the Mo/i@e/ Rehabilitation Plan. The /ispositi,epo$tion $ea/s;

+-ERE#ORE' p$e?ises consi/e$e/' the p$esent petition is:i,en /ue cou$se. The pa$ties a$e ?an/ate/ to co?pl%st$ictl% 7ith the p$o,isions of the app$o,e/ $ehabilitationplan.

The Rehabilitation Recei,e$ is he$eb% /i$ecte/ to p$o,i/ethis Cou$t 7ith pe$io/ic $epo$ts on the i?ple?entation of the app$o,e/ Rehabilitation Plan.

The p$o,isions of the app$o,e/ Rehabilitation Plan shall bebin/in: on all pe$sons an/ pa$ties a4ecte/ b% it' 7hethe$ o$not such pe$sons o$ pa$ties ha,e pa$ticipate/ in the p$esentp$ocee/in:s.

The conce$ne/ pa$ties a$e fu$the$ /i$ecte/ to sub?it to this

Cou$t thei$ $especti,e no?inees fo$ the Mana:e?entCo??ittee not late$ than ! /a%s befo$e the e1pi$ation of the pe$io/ fo$ the application of Phases ( an/ B of the

fo$e:oin: $ehabilitation plan. In case no no?inee issub?itte/ b% an% pa$t%' this Cou$t shall /i$ectl% /esi:natethe co$$espon/in: ?e?be$s the$eof.

SO ORDERED.KL

The$ef$o?' se,e$al c$e/ito$s 7ent to the C* ,ia sepa$atePetitions fo$ Re,ie7 on Ce$tio$a$i' to 7it; ( SCPs petition/ate/ anua$% )' B!!8' /ocete/ as C*2G.R. SP No. (!("Ban/ entitle/ Steel Co$po$ation of the Philippines ,. EuitablePCI 5an' Inc. B DEGs petition /ate/ anua$% ' B!!8'/ocete/ as C*2G.R. SP No. (!(88! an/ entitle/ DEGDeutsche In,estitions2un/ Ent7iclun:s:esselschaft ?b- ,.Steel Co$po$ation of the Philippines " 5DO2EPCI5s petition/ate/ anua$% 8' B!!8' /ocete/ as C*2G.R. SP No. (!(88(an/ entitle/ Euitable PCI 5an' Inc. ,. Steel Co$po$ation of the Philippines an/ u/icial notice of the fact that it has also been consoli/ate/7ith C*2G.R. SP No. (!("B in a Resolution issue/ b% the

C* /ate/ Ma$ch BB' B!(!.

On ul% "' B!!8' the C* issue/ the assaile/ /ecision in C*2G.R. SP No. (!(88(' o$/e$in: the te$?ination of the$ehabilitation p$ocee/in:s. The /ispositi,e po$tion $ea/s;

+-ERE#ORE' p$e?ises consi/e$e/' the Decision /ate/Dece?be$ "' B!! of the RTC' 5$anch II' 5atan:as Cit%' inSP No. !2))" is he$eb% SET *SIDE' an/ anothe$ one ishe$eb% ente$e/ /ecla$in: the $ehabilitation p$ocee/in:s

TERMIN*TED' pu$suant to Section B' Rule < of the Inte$i?Rules of P$oce/u$e on Co$po$ate Rehabilitation.


12/54

SO ORDERED.K)L

SCP then @le/ a Supple?ental Petition fo$ Re,ie7 /ate/ ul%B(' B!!8 in C*2G.R. SP No. (!("B' p$a%in:' a?on: othe$s'fo$ the app$o,al of its Re,ise/ Up/ate/ Counte$Rehabilitation Plan.

#$o? the ul% "' B!!8 C* Decision' DEG' SCP' an/?a$Glo$% i?ite/' an/ iui:a9 Philippines Co$po$ationinte$pose/ sepa$ate ?otions fo$ $econsi/e$ation. -o7e,e$'on Dece?be$ "' B!!)' the C* /enie/ all ?otions fo$$econsi/e$ations.

-ence' these sepa$ate $ecou$ses a$e befo$e us.

The Issues

In G.R. No. ()!usti@e/ its e$$o$ on the bases of ?islea/in: an/false state?ents

b It :$ante/ a $elief 7hich none of the pa$ties sou:ht fo$'no$ 7e$e hea$/' no$ :i,en the oppo$tunit% to be hea$/'the$eon' an/ c It substitute/ its >u/:?ent fo$ that of the $ehabilitationcou$t' usu$pin: in the p$ocess the e1clusi,e autho$it%$epose/ in the sai/ cou$t. II.

The KC*L e$$e/ an/ 7hen it /i/' it acte/ in a ?anne$ at 7a$7ith o$/e$l% p$oce/u$e 7hen it /ecla$e/ the te$?ination of

the p$ocee/in:s 7ithout passin: upon no$ :i,in: thepetitione$ a chance to be hea$/ on the up/ate/ alte$nati,e$ehabilitation plan sub?itte/ b% it. III.

The KC*L e$$e/ an/ 7hen it /i/' it faile/ to pe$fo$? its /utiesan/ obli:ations as a cou$t 7hen it foun/' an/ the$eafte$/ecla$e/ te$?ination of the $ehabilitation p$ocee/in:sbecause the case ha/ beco?e liti:ious an/ /i/ not t$% toallo7 the pa$ties to a/>ust thei$ /i4e$ences so that$ehabilitation of the petitione$ coul/ :o on.K(!L

In G.R. No. ()!&"8' DEG sub?its as follo7s; I.

The KC*L ha/ no >u$is/iction o$ autho$it% to te$?inate the$ehabilitation p$ocee/in:s.

II. *ssu?in:' a$:uen/o' that the KC*L ha/ the autho$it% tote$?inate the $ehabilitation p$ocee/in:s' such te$?ination7as p$e?atu$e.K((L

The issues $aise/ befo$e the Cou$t can be su??a$i9e/ intot7o;

( +hethe$ o$ not the C* e$$e/ in $efusin: to consoli/atethe cases pen/in: befo$e it an/

B +hethe$ o$ not the C* e$$e/ in :$antin: a $elief that 7asnot p$a%e/ fo$ b% the pa$ties' i.e.' the te$?ination of the$ehabilitation p$ocee/in:s.

Consoli/ation of Cases Is P$ope$


13/54

Petitione$ SCP a$:ues that the C* /e,iate/ f$o? its o7nInte$nal Rules 7hen it faile/ to consoli/ate the fou$ ointl% t$ie/' ino$/e$ to se$,e the best inte$ests of the pa$ties an/ to settlee1pe/itiousl% the issues in,ol,e/.K("L In othe$ 7o$/s'consoli/ation is p$ope$ 7he$e,e$ the sub>ect ?atte$in,ol,e/ an/ $elief /e?an/e/ in the /i4e$ent suits ?ae ite1pe/ient fo$ the cou$t to /ete$?ine all of the issues

in,ol,e/ an/ a/>u/icate the $i:hts of the pa$ties b% hea$in:the suits to:ethe$.K(ust' spee/%'

an/ ine1pensi,e /ete$?ination of thei$ cases befo$e thecou$ts. #u$the$' it $esults in the a,oi/ance of the possibilit%of conJictin: /ecisions bein: $en/e$e/ b% the cou$ts in t7o


14/54

o$ ?o$e cases' 7hich 7oul/ othe$7ise $eui$e a sin:le >u/:?ent.K(L

In the instant case' all fou$ u/:?ent that has ,e$itabl%$esulte/ in the ?ultiplicit% of suits. Such action is not$e:a$/e/ 7ith fa,o$' because consoli/ation shoul/ al7a%s

be o$/e$e/ 7hene,e$ it is possible.

Relief Is i?ite/ Onl% to Issues Raise/ SCP fu$the$ conten/s that the C* /enie/ it its $i:ht top$oce/u$al an/ substanti,e /ue p$ocess' because it :$ante/a $elief enti$el% /i4e$ent f$o? those sou:ht fo$ b% thepa$ties an/ on 7hich the% 7e$e neithe$ hea$/ no$ :i,en theoppo$tunit% to be hea$/.

Respon/ent 5DO2EPCI5' on the othe$ han/' ?aintains thatthe C* has the po7e$ to :$ant such othe$ app$op$iate $elief as ?a% be consistent 7ith the alle:ations an/ p$oofs 7hena p$a%e$ fo$ :ene$al $elief is a//e/ to the /e?an/ of speci@c $elief.K(8L

SCPs contention /ese$,es ?e$it.

Sec. 8' Rule &( of the ()) Rules of Ci,il P$oce/u$ee1p$essl% p$o,i/es;

SEC. 8. uestions that ?a% be /eci/e/. No e$$o$ 7hich /oesnot a4ect the >u$is/iction o,e$ the sub>ect ?atte$ o$ the,ali/it% of the >u/:?ent appeale/ f$o? o$ the p$ocee/in:s

the$ein 7ill be consi/e$e/ unless state/ in the assi:n?entof e$$o$s' o$ closel% $elate/ to o$ /epen/ent on an assi:ne/e$$o$ an/ p$ope$l% a$:ue/ in the b$ief' sa,e as the cou$tpass upon plain e$$o$s an/ cle$ical e$$o$s.

Essentiall%' the :ene$al $ule p$o,i/es that an assi:n?ent of e$$o$ is essential to appellate $e,ie7 an/ onl% thoseassi:ne/ 7ill be consi/e$e/'K()L sa,e fo$ the follo7in:e1ceptions; ( :$oun/s not assi:ne/ as e$$o$s but a4ectin:

>u$is/iction o,e$ the sub>ect ?atte$ B ?atte$s notassi:ne/ as e$$o$s on appeal but a$e e,i/entl% plain o$cle$ical e$$o$s 7ithin the conte?plation of the la7 "?atte$s not assi:ne/ as e$$o$s on appeal but consi/e$ationof 7hich is necessa$% in a$$i,in: at a >ust /ecision an/co?plete $esolution of the case o$ to se$,e the inte$est of

>ustice o$ to a,oi/ /ispensin: piece?eal >ustice


15/54

in,esto$s SCPs stocs' th$ou:h ne:otiate/ sale o$ bi//in:fo$ an a?ount not less than Php".! 5illion' 7hich iseui,alent to app$o1i?atel% ust an/ euitable un/e$ the p$e?ises' a$elie7ise p$a%e/ fo$.KB(L

It is ,e$% plain in the lan:ua:e of the p$a%e$s of 5DO2EPCI5that it onl% $eueste/ the C* to ?o/if% the e1istin:$ehabilitation plan. It ne,e$ sou:ht the te$?ination of the$ehabilitation p$ocee/in:s. Thus' :i,en the factual bac/$opof the case' it 7as inapp$op$iate fo$ the C*' ?otu p$op$io' tote$?inate the p$ocee/in:s. The appellate cou$t shoul/ ha,ep$ocee/e/ to $esol,e 5DO2EPCI5s appeal on its ?e$itsinstea/ of te$?inatin: the p$ocee/in:s' a $esult that has no:$oun/ in its plea/in:s in the C*.

In *be/es ,. Cou$t of *ppeals' this Cou$t e?phasi9e/ the/i4e$ence of appeals in c$i?inal cases an/ in ci,il cases b%sa%in:' Issues not $aise/ in the plea/in:s' as oppose/ too$/ina$% appeal of c$i?inal cases 7he$e the 7hole case isopene/ fo$ $e,ie7' a$e /ee?e/ 7ai,e/ o$ aban/one/.KBBL

Essentiall%' to 7a$$ant consi/e$ation on appeal' the$e ?ustbe /iscussion of the e$$o$ assi:ne/' else' the e$$o$ 7ill be/ee?e/ aban/one/ o$ 7ai,e/.KB"L

This Cou$t e,en 7ent fu$the$ in De,elop?ent 5an of thePhilippines ,. Teston' in 7hich it hel/ that it is i?p$ope$ toente$ an o$/e$ 7hich e1cee/s the scope of the $elief sou:htb% the plea/in:s' to 7it;

The Cou$t of *ppeals e$$e/ in o$/e$in: D5P to $etu$n to

$espon/ent the P('!!!'!!!.!! alle:e/ /o7n pa%?ent' a?atte$ not $aise/ in $espon/ents Petition fo$ Re,ie7 befo$e

it. In ose Cla,ano' Inc. ,. -ousin: an/ an/ Use Re:ulato$%5oa$/' this Cou$t hel/;

1 1 1 It is ele?enta$% that a >u/:?ent ?ust confo$? to' an/be suppo$te/ b%' both the plea/in:s an/ the e,i/ence' an/?ust be in acco$/ance 7ith the theo$% of the action on7hich the plea/in:s a$e f$a?e/ an/ the case 7as t$ie/. The

>u/:?ent ?ust be secun/u? alle:ata et p$obate. Italics ino$i:inal.

Due p$ocess consi/e$ations >ustif% this $eui$e?ent. It isi?p$ope$ to ente$ an o$/e$ 7hich e1cee/s the scope of $elief sou:ht b% the plea/in:s' absent notice 7hich a4o$/sthe oppo$tunit% to be hea$/ 7ith $espect to the p$opose/$elief. The fun/a?ental pu$pose of the $eui$e?ent thatalle:ations of a co?plaint ?ust p$o,i/e the ?easu$e of $eco,e$% is to p$e,ent su$p$ise to the /efen/ant.KB


16/54

DEUTSC-E 5*N *G'Petitione$'

2 ,e$sus 2

COURT O# *PPE*S an/ STEE CORPOR*TION O# T-EP-IIPPINES'Respon/ents. G.R. No. ()"!& P$esent;

VE*SCO' R.' .' Chai$pe$son'

PER*T*'

*5*D'

MENDO*' an/

PER*S25ERN*5E' .

P$o?ul:ate/;

#eb$ua$% B' B!(B

=22222222222222222222222222222222222222222222222222222222222222222222222222222222222222 = D E C I S I O N

MENDO*' .;

This is a petition fo$ ce$tio$a$i un/e$ Rule & of the ())Rules of Ci,il P$oce/u$e assailin: the Ma$ch (B' B!(!K(L an/

ul% ()' B!(!KBL Resolutions of the Cou$t of *ppeals C* inC*2G.R. SP No. (((&& entitle/ Deutsche 5an *G ,. -on.

u/:e *lbe$t *. alalo an/ Steel Co$po$ation of thePhilippines Deutsche 5an *G Petition fo$ ha,in: beenissue/ 7ithout >u$is/iction o$ 7ith :$a,e abuse of /isc$etiona?ountin: to lac o$ e1cess of >u$is/iction' insofa$ as the%o$/e$e/ the consoli/ation of the Deutsche 5an *G Petition7ith anothe$ case ea$lie$ @le/ an/ /ocete/ as C*2G.R. SPNo. (!&"& entitle/ Vita$ich Co$po$ation ,. u/:e DaniloManalastas Vita$ich Petition on the :$oun/ that the t7o

cases in,ol,e a co??on uestion of la7. T-E #*CTS P$i,ate $espon/ent Steel Co$po$ation of the PhilippinesSteelCo$p is a /o?estic co$po$ation o$:ani9e/ an/e1istin: un/e$ the la7s of the Philippines 7ith p$incipalplace of business in Muntin: Tubi:' 5ala%an' 5atan:as. It isen:a:e/ in the business of ?anufactu$in: an/ /ist$ibutionof col/2$olle/' :al,ani9e/ an/ p$e2painte/ steel sheets an/

coils.


17/54

On Dece?be$ ' ())&' SteelCo$p' as bo$$o7e$' ente$e/ intoa loan a:$ee?entK"L 7ith a conso$tiu? of len/in: bansan/ othe$ @nancial institutions fo$ the pu$pose of pa$tiall%@nancin: the const$uction of its inte:$ate/ steel ?illp$o>ect. One of the pa$ticipatin: len/e$s 7as Ri9alCo??e$cial 5anin: Co$po$ation RC5C. SteelCo$p faile/ to pa% its loan obli:ations as the% fell /ue.

Thus' on Septe?be$ ((' B!!' Euitable PCI 5an' Inc. no75anco /e O$o @le/ a c$e/ito$2initiate/ petition to placeSteelCo$p un/e$ co$po$ate $ehabilitation befo$e theRe:ional T$ial Cou$t of 5atan:as' 5$anch B' 7hich 7assubseuentl% $ae/ to 5$anch < RTC25atan:as. This case7as /ocete/ as Spec. P$oc. No. !2))".K


18/54

#in/in: ?e$it in the ?otion' an/ pu$suant to Section "a'Rule III of the Inte$nal Rules of the Cou$t of *ppeals' theinstant petition is o$/e$e/ CONSOID*TED 7ith C*2G.R. SPNo. (!&"& the case 7ith the lo7e$ /ocet nu?be$'sub>ect to the confo$?it% of the ponente the$eof an/ 7ith$i:ht of $eplace?ent 7ith a case of si?ila$ natu$e an/status. SO ORDERED.K(BL

It appea$s f$o? the $eco$/s that the Vita$ich Petitione?anate/ f$o? Ci,il Case No. &)B2M2B!! entitle/ In theMatte$ of the Petition fo$ Co$po$ate Rehabilitation of Vita$ichCo$po$ation 7hich is cu$$entl% pen/in: befo$e 5$anch 'Re:ional T$ial Cou$t of 5ulacan RTC25ulacan.

The RTC25ulacan in its Decision /ate/ Ma% "(' B!!'app$o,e/ the Vita$ich $ehabilitation plan an/ uphel/ the$i:hts of the assi:nees as sub$o:ees to all the $i:hts an/obli:ations of the o$i:inal c$e/ito$s. Vita$ich sou:ht a pa$tial $e,e$sal of the sai/ /ecision ,ia apetition fo$ $e,ie7 un/e$ Rule


19/54

The a//e/ e1pense an/ un>usti@e/ ,e1ation inti?ate/ b%petitione$ a$e all in the ?in/. One /i,ision of this Cou$t7oul/ be able to $esol,e the issue in both petitions 7ith?o$e /ispatch an/ acco$/ than t7o /i,isions. +-ERE#ORE' the ?otion fo$ $econsi/e$ation is DENIED. SO ORDERED.K(L -ence' Deutsche 5an *G inte$poses the p$esent specialci,il action befo$e this Cou$t ancho$e/ on the follo7in: GROUNDS

T-E RESPONDENT COURT COMMITTED GR*VE *5USE O#DISCRETION' *MOUNTING TO *C OR E=CESS O#

URISDICTION' IN ISSUING T-E *SS*IED RESOUTIONS*ND ORDERING T-E CONSOID*TION O# T-E T+O BSU5ECT PETITIONS CONSIDERING T-*T; IUNDER SECTION "* RUE III O# T-E INTERN* RUES O#

T-E COURT O# *PPE*S *ND ONGST*NDING URISPRUDENCE' #OR CONSOID*TION TO 5E PROPER' T-EC*SES MUST 5E RE*TED' I.E.' T-E0 *RISE #ROM T-E S*ME*CT' EVENT OR TR*NS*CTION' INVOVE T-E S*ME OR IEISSUES' *ND DEPEND *RGE0 OR SU5ST*NTI*0 ON T-ES*ME EVIDENCE. -ERE' T-E C*SES SOUG-T TO 5E

CONSOID*TED *RE TOT*0 UNRE*TED II

T-E CONSOID*TION O# T-E T+O C*SES +I 5ECOMPETE0 *G*INST T-E PURPOSE O# CONSOID*TION'+-IC- IS TO O5T*IN USTICE +IT- T-E E*ST E=PENSE*ND VE=*TION TO T-E ITIG*NTS.K(L It appea$s f$o? the $eco$/s that on No,e?be$ (8' B!(('SteelCo$p @le/ a ?anifestation /ate/ No,e?be$ (' B!(('

statin: that the assaile/ $esolution o$/e$in: consoli/ation/ate/ Ma$ch (B' B!(! ha/ been issue/ in $esponse to theMotion fo$ Consoli/ation /ate/ #eb$ua$% (8' B!(! @le/

the$ein b% SteelCo$p. SteelCo$p ?anifeste/ that onNo,e?be$ (u$is/iction 7hen

it o$/e$e/ the consoli/ation of the Deutsche 5an *Gpetition an/ the Vita$ich petition.


20/54

Deutsche 5an *G a$:ues that a co??on uestion of la7alone 7oul/ not 7a$$ant consoli/ation' an/ fo$ cases to beconsoli/ate/' the sa?e ?ust be $elate/ cases. It cite/ asbasis the $ulin: enunciate/ in the lan/?a$ case of Teston,. De,elop?ent 5an of the Philippines'K()L that actionsin,ol,in: co??on uestion of la7 o$ fact ?a% be t$ie/to:ethe$ 7he$e the% a$ise f$o? the sa?e act' e,ent o$t$ansaction' in,ol,e the sa?e o$ lie issues' an/ /epen/la$:el% o$ substantiall% on the sa?e e,i/ence. It conten/sthat the$e 7as :$a,e abuse of /isc$etion on the pa$t of theC* 7hen it o$/e$e/ the consoli/ation because Deutsche5an *G Petition an/ the Vita$ich Petition 7e$e not $elate/'?uch less' inti?atel% $elate/ cases. The t7o cases 7e$eenti$el% /i4e$ent 7ith sepa$ate factual antece/ents' ha,in:a$isen f$o? t7o sepa$ate petitions fo$ $ehabilitation of t7o/istinct co$po$ations. In a//ition' the$e 7e$e nointe$connecte/ t$ansactions in' no$ i/entical p$ope$tiessub>ect of' the t7o cases. It fu$the$ a$:ues thatconsoli/ation 7oul/ onl% /efeat' $athe$ than se$,e' thepu$pose of consoli/ation. SteelCo$p counte$s that the C* ?a% consoli/ate cases onthe sole :$oun/ that the cases in,ol,e $elate/ uestions of la7. Thus' the fact that Deutsche 5an *G Petition an/Vita$ich Petition in,ol,e an i/entical uestion of la7 issu3cient to ?ae the? $elate/ cases 7hich 7e$e p$ope$ fo$consoli/ation pu$suant to Section "a' Rule III of the IRC*.

The Cou$t a:$ees 7ith Deutsche 5an *G.Consoli/ation of actions in,ol,in: a co??on uestion of la7 o$ fact is e1p$essl% autho$i9e/ un/e$ Section (' Rule "(of the ()) Rules of Ci,il P$oce/u$e' to 7it; SECTION (. Consoli/ati!n. +hen actions in,ol,in: aco??on uestion of la7 o$ fact a$e pen/in: befo$e thecou$t' it ?a% o$/e$ a >oint hea$in: o$ t$ial of an% o$ all the?atte$s in issue in the actions it ?a% o$/e$ all the actionsconsoli/ate/ an/ it ?a% ?ae such o$/e$s conce$nin:

p$ocee/in:s the$ein as ?a% ten/ to a,oi/ unnecessa$%costs o$ /ela%.

Consoli/ation of cases is also allo7e/ un/e$ Section "' RuleIII of the B!!) IRC*' to 7it; Consoli/ation of Cases. +hen $elate/ cases a$e assi:ne/ to/i4e$ent ustices' the% ?a% be consoli/ate/ an/ assi:ne/ toone ustice. a Upon ?otion of a pa$t% 7ith notice to the othe$pa$t%Fies' o$ at the instance of the ustice to 7ho? an% of the $elate/ cases is assi:ne/' upon notice to the pa$ties'consoli/ation shall ensue 7hen the cases in,ol,e the sa?epa$ties an/Fo$ $elate/ uestions of fact an/Fo$ la7.b Consoli/ate/ cases shall pe$tain to the ustice

( To 7ho? the case 7ith the lo7est /ocet nu?be$ isassi:ne/' if the% a$e of the sa?e in/B To 7ho? the c$i?inal case 7ith the lo7est nu?be$ isassi:ne/' if t7o o$ ?o$e of the cases a$e c$i?inal an/ theothe$s a$e ci,il o$ special" To 7ho? the c$i?inal case is assi:ne/ an/ the othe$ a$eci,il o$ special an/ointl%t$ie/' in o$/e$ to se$,e the best inte$ests of the pa$ties an/to settle e1pe/itiousl% the issues in,ol,e/. In othe$ 7o$/s'


21/54

consoli/ation is p$ope$ 7he$e,e$ the sub>ect ?atte$in,ol,e/ an/ $elief /e?an/e/ in the /i4e$ent suits ?ae ite1pe/ient fo$ the cou$t to /ete$?ine all of the issuesin,ol,e/ an/ a/>u/icate the $i:hts of the pa$ties b% hea$in:the suits to:ethe$. In the p$esent case' the$e is no su3cient >usti@cation too$/e$ the consoli/ation inas?uch as the Deutsche 5an *GPetition has no $elation 7hatsoe,e$ to the Vita$ich Petition.

To $ecall' the Deutsche 5an *G Petition is an appeal once$tio$a$i f$o? the O$/e$ /ate/ Octobe$ B8' B!!) of the RTC5atan:as in Sp. P$oc. No. !2))". Vita$ich case' on theothe$ han/' is an appeal on ce$tio$a$i an/ ?an/a?us f$o?the O$/e$ /ate/ anua$% ()' B!!) of the RTC 5ulacan in Ci,ilCase No. &)B2M2B!!.

The fact that Deutsche 5an *G is a pa$t% to both cases/oes not ?ae the p$ocee/in:s inti?atel% $elate/. The$e isno factual $elation bet7een the t7o p$ocee/in:s. SteelCo$pp$ocee/in:s o$i:inate/ f$o? SteelCo$ps $ehabilitationp$ocee/in:s 7hich ha,e nothin: to /o 7ith the Vita$ichp$ocee/in: that o$i:inate/ f$o? Vita$ichs $ehabilitationp$ocee/in:.

Neithe$ a$e the$e inte$connecte/ t$ansactions' no$ i/enticalsub>ect ?atte$ in the Deutsche 5an *G an/ Vita$ichpetitions. The fo$?e$ in,ol,e/ issue $esultin: f$o? theassi:n?ent of c$e/its of RC5C to Deutsche 5an *G7he$eas in the latte$' the issue a$ose f$o? the assi:n?entof the $ecei,ables of ,a$ious c$e/ito$s of Vita$ich to se,e$alco$po$ations an/ special pu$pose ,ehicles SPVs. Ve$il%' the t7o petitions ha,in: no factual $elationship 7ithan/ no inte$connecte/ t$ansactions on the sa?e sub>ect?atte$' the% cannot be /ee?e/ $elate/ cases. *s such' thenecessit% to consoli/ate /oes not beco?e i?pe$ati,e. Theo$/e$ of consoli/ation b% the C* on the sole :$oun/ that the

cases in,ol,e/ a co??on uestion of la7 7as' the$efo$e'not in o$/e$.

It bea$s notin: that the C* cite/ the cases of ulueta ,. *sia5$e7e$%' Inc.'KB(L 5en:uet Co$po$ation' Inc. ,. Cou$t of *ppeals'KBBL an/ *cti,e +oo/ P$o/ucts Co.' Inc. ,. Cou$t of *ppealsKB"L as >u$isp$u/ential basis of its o$/e$ toconsoli/ate. Its $eliance on the sai/ cases 7as ?isplace/ asthe factual ?ilieus the$ein 7e$e not in all fou$s 7ith thecase at bench. The $ulin: in these cases' in fact' bolste$e/Deutsche 5an *Gs position that fo$ consoli/ation to be7a$$ante/ the cases sou:ht to be consoli/ate/ ?ust notonl% in,ol,e $elate/ issues but also the sa?e pa$ties an/closel% $elate/ sub>ect ?atte$s.

The C* cannot $el% on the case of ulueta ,. *sia 5$e7e$%'Inc.' to suppo$t its $ulin: that consoli/ation is p$ope$ 7henthe cases in,ol,e the $esolution of a co??on uestion of la7 o$ fact. In the sai/ case' a >oint t$ial of the t7o cases7as >usti@e/ because both a$ose out of' o$ an inci/ent of'the sa?e Deale$ship *:$ee?ent. Thus' the Cou$t uphel/ theconsoli/ation in this 7ise;Inas?uch as the bin/in: fo$ce of the Deale$ship *:$ee?ent7as put in uestion' it 7oul/ be ?o$e p$actical an/con,enient to sub?it to the Iloilo cou$t all the inci/ents an/thei$ conseuences. The issues in both ci,il cases pe$tain tothe $especti,e obli:ations of the sa?e pa$ties un/e$ theDeale$ship *:$ee?ent. Thus' e,e$% t$ansaction as 7ell asliabilit% a$isin: f$o? it ?ust be $esol,e/ in the >u/icial fo$u?7he$e it is put in issue. The consoli/ation of the t7o casesthen beco?es i?pe$ati,e to a co?plete' co?p$ehensi,ean/ consistent /ete$?ination of all these $elate/ issues.

T7o cases in,ol,in: the sa?e pa$ties an/ a4ectin: closel%$elate/ sub>ect ?atte$s ?ust be o$/e$e/ consoli/ate/ an/

>ointl% t$ie/ in cou$t' 7he$e the ea$lie$ case 7as @le/.KB


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Di,ision. #aultin: the C* )th Di,ision 7ith :$a,e abuse of /isc$etion in /en%in: 5en:uetAs Motion to T$ansfe$ Case No.C*2G.R. SP No. (B)< to the (!th Di,ision' the Cou$t hel/'thus;

B. The ?atte$ ele,ate/ to the )th Di,ision' na?el%' thei?ple?entation of the +$it of P$eli?ina$% Man/ato$%In>unction 7ith 5$ea2open O$/e$ issue/ b% the T$ial Cou$ton B) Septe?be$ ()8 in fa,o$ of 5ENGUET in theRecon,e%ance Case Ci,il Case No. &8(& 7as aconseuence of the ,e$% Decision $en/e$e/ b% the (!thDi,ision. It 7as' the$efo$e' p$ope$l% 7ithin its co?petencebein: inti?atel% $elate/ to the ,e$% issues $aise/ an/$esol,e/ b% sai/ Di,ision.". The $ationale fo$ consoli/ation is to ha,e all casesinti?atel% $elate/ acte/ upon b% one Cou$t Di,ision to a,oi/the possibilit% of conJictin: /ecisions in cases in,ol,in: thesa?e facts an/ co??on uestions of la7. The cases befo$ethe (!th Di,ision an/ the )th Di,ision of the Cou$t of *ppeals a$e t7o B such inti?atel% an/ substantiall%$elate/ cases. Consoli/ation bein: calle/ fo$ it cannot be

>usti@abl% a$:ue/' as p$i,ate $espon/ents /o' that 5ENGUETis estoppe/ f$o? plea/in: fo$ such consoli/ation. To /en%the t$ansfe$ coul/ lea/ to fu$the$ p$ot$acte/ liti:ations tothe /et$i?ent of the e3cient an/ e4ecti,e /ete$?ination of actions an/ p$ocee/in:s.KBL un/e$sco$in: supplie/ -ence' consoli/ation of cases is p$ope$ 7hen the$e is a $ealnee/ to fo$estall the possibilit% of conJictin: /ecisionsbein: $en/e$e/ in the cases.KBL In the case un/e$consi/e$ation' consi/e$in: that Deutsche 5an *G an/Vita$ich cases a$e not $elate/' the $is of conJictin:/ecisions is a $e?ote p$obabilit%. astl%' in *cti,e +oo/ P$o/ucts Co.' Inc. ,. Cou$t of *ppeals'the Cou$t sustaine/ the consoli/ation of the ci,il case @le/b% *cti,e +oo/ a:ainst State In,est?ent -ouse an/ thelatte$s petition fo$ a 7$it of possession in the lan/

$e:ist$ation case as the% in,ol,e/ the sa?e pa$ties an/ thesa?e sub>ect ?atte$ *cti,e +oo/s t7o pa$cels of lan/'thus;

The consoli/ation of cases beco?es ?an/ato$% because itin,ol,es the sa?e pa$ties an/ the sa?e sub>ect ?atte$7hich is the sa?e pa$cel of lan/. Such consoli/ation is/esi$able to a,oi/ confusion an/ unnecessa$% costs an/e1penses 7ith the ?ultiplicit% of suits.KB8L 111un/e$sco$in: supplie/ #u$the$' the Cou$t @n/s ?e$it in Deutsche 5an *Gscontention that the consoli/ation of the sub>ect cases 7ill/efeat the pu$pose of consoli/ation. It is 7ell $eco:ni9e/ that the pu$pose of the $ule onconsoli/ation is to a,oi/ ?ultiplicit% of suits to :ua$/a:ainst opp$ession an/ abuse to p$e,ent /ela%s to clea$con:este/ /ocets an/ to si?plif% the 7o$ of the t$ialcou$t. In sho$t' consoli/ation ai?s to attain >ustice 7ith theleast e1pense an/ ,e1ation to the pa$ties2liti:ants.KB)L Itcont$ibutes to the s7ift /ispensation of >ustice' an/ is inacco$/ 7ith the ai? of a4o$/in: the pa$ties a >ust' spee/%'an/ ine1pensi,e /ete$?ination of thei$ cases befo$e thecou$ts. #u$the$' it $esults in the a,oi/ance of the possibilit%of conJictin: /ecisions bein: $en/e$e/ b% the cou$ts in t7oo$ ?o$e cases' 7hich 7oul/ othe$7ise $eui$e a sin:le

>u/:?ent.K"!L Un/e$ the ci$cu?stances' the consoli/ation of the Deutsche5an *G Petition 7ith the Vita$ich Petition /oes not appea$to be a p$u/ent ?o,e as it se$,es none of the pu$posescite/ abo,e. On the cont$a$% an/ as co$$ectl% pointe/ outb% Deutsche 5an *G' it 7ill onl% co?plicate the $esolutionof the cases as the C* 7oul/ ha,e to consi/e$ the /i4e$entfactual antece/ents of both the Deutsche 5an *G an/Vita$ich petitions. Mo$eo,e$' the uestion of la7 that the Vita$ich p$ocee/in:salle:e/l% sha$es 7ith the SteelCo$p P$ocee/in:s 7hethe$Vita$ichs c$e/ito$s coul/ be co?pelle/ to /isclose the su?s

pai/ fo$ the assi:ne/ Vita$ich loans 2 has lon: been @nall%$esol,e/ an/ has al$ea/% beco?e the la7 of the casea?on: the pa$ties in the Vita$ich $ehabilitation p$ocee/in:s.


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Thus' the consoli/ation 7oul/ un/ul% p$e>u/ice the bansan/ 7oul/ lea/ to co?plications' /ela% o$ $est$iction on the$i:ht of the bans to the i??e/iate /is?issal of the Vita$ichp$ocee/in:s. #u$the$?o$e' the consoli/ation 7ill onl% sub>ect the pa$tiesto a//e/ e1pense an/ un>ust ,e1ation. The nu?be$ of pa$ties 7ill substantiall% inc$ease so as the cost of fu$nishin: the pa$ties 7ith plea/in:s' the$eb% /efeatin: the,e$% $ationale behin/ consoli/ation.

Rele,ant is the case of Republic of the Phils. ,. -on.Man:$oban:'K"(L 7he$e the Cou$t /isallo7e/ theconsoli/ation of an e>ect?ent case an/ a case fo$ e?inent/o?ain because the consoli/ation the$eof 7oul/ co?plicatep$oce/u$al $eui$e?ents an/ /ela% the $esolution of thecases 7hich $aise/ /issi?ila$ issues. The Cou$t hel/ thatfai$ness an/ /ue p$ocess ?i:ht be ha?pe$e/ $athe$ thanhelpe/ if the cases 7e$e consoli/ate/.ie7ise' in Philippine National 5an ,. T%an Min:De,elop?ent' Inc.K"BL the non2consoli/ation of PN5spetition fo$ a 7$it of possession an/ GOTESCOs co?plaintfo$ annul?ent of fo$eclosu$e p$ocee/in: 7as uphel/ fo$/efeatin: the ,e$% pu$pose of consoli/ation' thus;

The $eco$/ sho7s that PN5s petition 7as @le/ on Ma% B'B!!' an/ $e?ains pen/in: afte$ th$ee " %ea$s' /espitethe su??a$% natu$e of the petition. Ob,iousl%' theconsoli/ation onl% /ela%e/ the issuance of the /esi$e/ 7$itof possession. #u$the$' it p$e>u/ice/ PN5s $i:ht to taei??e/iate possession of the p$ope$t% an/ :a,e GOTESCOun/ue a/,anta:e' fo$ GOTESCO continues to possess thep$ope$t% /u$in: the pen/enc% of the consoli/ate/ cases'/espite the fact that title to the p$ope$t% is no lon:e$ in itsna?e.It shoul/ be st$esse/ that GOTESCO 7as 7ell a7a$e of thee1pi$ation of the pe$io/ to $e/ee? the p$ope$t%. 0et' it /i/

not e1e$cise its $i:ht of $e/e?ption. The$e 7as not e,en anatte?pt to $e/ee? the p$ope$t%. Instea/' it @le/ a case fo$annul?ent of fo$eclosu$e' speci@c pe$fo$?ance' an/

/a?a:es an/ p$a%e/ fo$ a 7$it of in>unction to p$e,ent PN5f$o? consoli/atin: its title. GOTESCOs ?aneu,e$in:'ho7e,e$' faile/' as the C* an/ this Cou$t $efuse/ to issuethe /esi$e/ 7$it of in>unction.Co:ni9ant that the ne1t lo:ical step 7oul/ be fo$ PN5 tosee the /eli,e$% of possession of the p$ope$t%' GOTESCOno7 t$ies to /ela% the issuance of 7$it of possession. It isclea$ that the ?otion fo$ consoli/ation 7as @le/ ?e$el% tof$ust$ate PN5s $i:ht to i??e/iate possession of thep$ope$t%. It is a t$anspa$ent plo% to /ela%' if not to p$e,ent'PN5 f$o? tain: possession of the p$ope$t% it acui$e/ at apublic auction ten (! %ea$s a:o. This 7e cannot tole$ate.111 In De Ve$a ,. *:lo$o' this Cou$t uphel/ the /enial b% the RTCof a ?otion fo$ consoli/ation of a petition fo$ issuance of a7$it of possession 7ith a ci,il action' as it 7oul/ p$e>u/icethe $i:ht of one of the pa$ties' ,i9.;It bea$s st$essin: that consoli/ation is ai?e/ to obtain

>ustice 7ith the least e1pense an/ ,e1ation to the liti:ants. The ob>ect of consoli/ation is to a,oi/ ?ultiplicit% of suits':ua$/ a:ainst opp$ession o$ abuse' p$e,ent /ela%s an/ sa,ethe liti:ants unnecessa$% acts an/ e1pense. Consoli/ationshoul/ be /enie/ 7hen p$e>u/ice 7oul/ $esult to an% of thepa$ties o$ 7oul/ cause co?plications' /ela%' p$e>u/ice' cuto4' o$ $est$ict the $i:hts of a pa$t%.K""L un/e$sco$in:supplie/In the $ecent case of Espino9a ,. Unite/ O,e$seas 5anPhils.'K"


24/54

7hich is to a,oi/ unnecessa$% /ela% be /efeate/ but thep$oce/u$al ?atte$ of consoli/ation 7ill also a/,e$sel% a4ectthe substanti,e $i:ht of possession as an inci/ent of o7ne$ship.K"&L

In/ee/' the consoli/ation of actions is a//$esse/ to thesoun/ /isc$etion of the cou$t an/ its action in consoli/atin:7ill not be /istu$be/ in the absence of ?anifest abuse of /isc$etion.K"L G$a,e abuse of /isc$etion /e@es e1act/e@nition' but it :ene$all% $efe$s to cap$icious o$ 7hi?sicale1e$cise of >u/:?ent as is eui,alent to lac of >u$is/iction.

The abuse of /isc$etion ?ust be patent an/ :$oss as toa?ount to an e,asion of a positi,e /ut% o$ a ,i$tual $efusalto pe$fo$? a /ut% en>oine/ b% la7' o$ to act at all inconte?plation of la7' as 7he$e the po7e$ is e1e$cise/ in ana$bit$a$% an/ /espotic ?anne$ b% $eason of passion an/hostilit%.K"L In this pa$ticula$ case' ho7e,e$' the e1e$cise of such/isc$etion b% the C* in o$/e$in: the consoli/ation of theDeutsche 5an *G Petition an/ the Vita$ich Petition 7as lessthan >u/icious consi/e$in: that the t7o cases 7e$e notinti?atel% an/ substantiall% $elate/. est it be ?isun/e$stoo/' the C* ?a% p$esc$ibe $easonable$ules :o,e$nin: assi:n?ent of cases 7ith si?ila$ uestionsof la7 o$ facts to one >ustice. In case of consoli/ation'ho7e,e$' it ?a% be e4ecte/ onl% if the sai/ cases a$e$elate/. Nee/less to state' assi:n?ent is /i4e$ent f$o?consoli/ation. +-ERE#ORE' the petition is GR*NTED. The Ma$ch (B' B!(!an/ the ul% ()' B!(! Resolutions of the Cou$t of *ppeals inC*2G.R. SP No. (((&& a$e REVERSED an/ SET *SIDE.

M il f th l tt f /it O !& D b ()8 f l


25/54

Manila

SECOND DIVISION

G.R. No. (&B!( Ma% 8' B!!)

PRODUCERS 5*N O# T-E P-IIPPINES' Petitione$',s.E=CES* INDUSTRIES' INC.' Respon/ent.

D E C I S I O N

TING*' .;

This is a petition fo$ $e,ie7 on ce$tio$a$i( un/e$ Rule


26/54

On ( Ma$ch ()8' $espon/ent p$esente/ fo$ ne:otiation topetitione$ /$afts /$a7n un/e$ the lette$ of c$e/it an/ theco$$espon/in: e1po$t /ocu?ents in consi/e$ation fo$ its/$a7in:s in the a?ounts of USW&'"). an/ USWu/icial fo$eclosu$e on the $eal estate?o$t:a:e o,e$ $espon/entQs p$ope$ties.

Pe$ petitione$Qs co?putation' asi/e f$o? cha$:es fo$atto$ne%Qs fees an/ she$i4Qs fees' $espon/ent ha/ a total/ue an/ /e?an/able obli:ation of P&"'BB&.!' inclu/in:inte$est' in si1 /i4e$ent accounts' na?el%;

( E5P2P-O282((B( USW


27/54

On (8 Dece?be$ ())' the RTC $en/e$e/ a /ecisionuphol/in: the ,ali/it% of the e1t$a>u/icial fo$eclosu$e an/o$/e$in: the issuance of a 7$it of possession in fa,o$ of petitione$' to 7it;

+-ERE#ORE' in Case No. (&82*' the cou$t he$eb% $ulesthat the fo$eclosu$e of ?o$t:a:e fo$ the ol/ an/ ne7obli:ations of the plainti4 E1celsa In/ust$ies Co$p.' 7hichhas $e?aine/ unpai/ up to the ti?e of fo$eclosu$e b%/efen/ant P$o/uce$s 5an of the Philippines 7as ,ali/' le:alan/ in o$/e$ In Case No. 82*' the cou$t he$eb% o$/e$s fo$the issuance of a 7$it of possession in fa,o$ of P$o/uce$Qs5an of the Philippines afte$ the p$ope$ties of E1celsaIn/ust$ies Co$p.' 7hich 7e$e fo$eclose/ an/ consoli/ate/ inthe na?e of P$o/uce$s 5an of the Philippines un/e$ TCTNo. ()!"(' ()!"B' ()!""' ()!"< an/ ()!"& of theRe:iste$ of Dee/s of Ma$iina.

SO ORDERED.B!

The RTC hel/ that petitione$' 7hose obli:ation consiste/onl% of $ecei,in:' an/ not of collectin:' the e1po$t p$ocee/sfo$ the pu$pose of con,e$tin: into Philippine cu$$enc% an/$e?ittin: the sa?e to $espon/ent' cannot be consi/e$e/ as$espon/entQs a:ent. The RTC also hel/ that petitione$cannot be p$esu?e/ to ha,e $ecei,e/ the e1po$t p$ocee/s'consi/e$in: that $espon/ent e1ecute/ un/e$tain:s7a$$antin: that the /$afts an/ acco?pan%in: /ocu?ents7e$e :enuine an/ accu$atel% $ep$esente/ the facts state/the$ein an/ 7oul/ be accepte/ an/ pai/ in acco$/ance 7iththei$ teno$.B(

#u$the$?o$e' the RTC conclu/e/ that petitione$ ha/ noobli:ation to $etu$n the e1po$t /ocu?ents an/ $espon/entcoul/ not e1pect thei$ $etu$n p$io$ to the pa%?ent of thee1po$t a/,ances because the /$afts an/ e1po$t /ocu?ents7e$e the e,i/ence that $espon/ent $ecei,e/ e1po$ta/,ances f$o? petitione$.BB

The RTC also foun/ that b% its a/?ission' $espon/ent ha/othe$ loan obli:ations obtaine/ f$o? petitione$ 7hich 7e$e/ue an/ /e?an/able hence' petitione$ co$$ectl% e1e$cise/its $i:ht to fo$eclose the $eal estate ?o$t:a:e' 7hichp$o,i/e/ that the sa?e secu$e/ the pa%?ent of not onl%the loans al$ea/% obtaine/ but also the e1po$ta/,ances.B"(a,,phi(

astl%' the RTC foun/ $espon/ent :uilt% of laches inuestionin: the fo$eclosu$e sale consi/e$in: that petitione$?a/e se,e$al /e?an/s fo$ pa%?ent of $espon/entQsoutstan/in: loans as ea$l% as ul% ()8 an/ that $espon/entacno7le/:e/ the failu$e to pa% its loans an/ a/,ances.B<

The RTC /enie/ $espon/entQs ?otion fo$ $econsi/e$ation.B& Thus' $espon/ent ele,ate/ the ?atte$ to the Cou$t of *ppeals' $eite$atin: its clai? that petitione$ 7as not onl% acollection a:ent but 7as consi/e$e/ a pu$chase$ of thee1po$t

On "! Ma% B!!(' the Cou$t of *ppeals $en/e$e/ theassaile/ /ecision' $e,e$sin: the RTCQs /ecision' thus;

+-ERE#ORE' the appeal is he$eb% GR*NTED. The /ecisionof the t$ial cou$t /ate/ Dece?be$ (8' ()) is REVERSEDan/ SET *SIDE. *cco$/in:l%' the fo$eclosu$e of ?o$t:a:e onthe p$ope$ties of appellant is /ecla$e/ as INV*ID. Theissuance of the 7$it of possession in fa,o$ of appellee is*NNUED. The follo7in: /a?a:es a$e he$eb% a7a$/e/ infa,o$ of appellant;

a Mo$al /a?a:es in the a?ount of P(!!'!!!.!!

b E1e?pla$% /a?a:es in the a?ount of P(!!'!!!.!! an/

c Costs.

SO ORDERED.B

The Cou$t of *ppeals hel/ that $espon/ent shoul/ not befaulte/ fo$ the /ishono$ of the /$afts an/ e1po$t /ocu?ents

because the obli:ation to collect the e1po$t p$ocee/s f$o? @n/in: that $espon/ent 7as :uilt% of estoppel b% laches in


28/54

because the obli:ation to collect the e1po$t p$ocee/s f$o?7an: u 5an' t/. /e,ol,e/ upon petitione$. It cite/ thetesti?on% of petitione$Qs ?ana:e$ fo$ the fo$ei:n cu$$enc%/epa$t?ent to the e4ect that petitione$ 7as $espon/entQsa:ent' bein: the onl% entit% autho$i9e/ un/e$ Cent$al 5anCi$cula$ No.


29/54

se,e$all%' to /efen/ an/ hol/ %ou f$ee an/ ha$?less f$o?an% an/ all actions' clai?s an/ /e?an/s 7hatsoe,e$' an/to pa% on /e?an/ all /a?a:es actual o$ co?pensato$%inclu/in: atto$ne%Qs fees' costs an/ othe$ a7a$/s o$ bea/>u/:e/ to pa%' in case of suit' 7hich %ou ?a% su4e$a$isin: f$o?' b% $eason' o$ on account of %ou$ ne:otiatin:the abo,e /$afts because of the follo7in: /isc$epancies o$$easons o$ an% othe$ /isc$epanc% o$ $eason 7hate,e$.

+e he$eb% un/e$tae to pa% on /e?an/ the full a?ount of the abo,e /$afts o$ an% unpai/ balance the$eof' thePhilippine pe$so eui,alent con,e$te/ at the p$e,ailin:sellin: $ate o$ sellin: $ate p$e,ailin: at the /ate %oune:otiate ou$ /$aft' 7hiche,e$ is hi:he$ allo7e/ b% theCent$al 5an 7ith inte$est at the $ate p$e,ailin: to/a% f$o?the /ate of ne:otiation' plus all cha$:es an/ e1penses7hatsoe,e$ incu$$e/ in connection the$e7ith. 0ou shallneithe$ be obli:e/ to contest o$ /ispute an% $efusal toaccept o$ to pa% the 7hole o$ an% pa$t of the abo,e /$afts'no$ p$ocee/ in an% 7a% a:ainst the /$a7ee' the issuin:ban o$ an% en/o$se$ the$eof' befo$e ?ain: a /e?an/ onus fo$ the pa%?ent of the 7hole o$ an% unpai/ balance of the /$afts.E?phasis supplie/"(

In Velasue9 ,. Soli/ban Co$po$ation'"B 7he$e the /$a7e$the$ein also e1ecute/ a sepa$ate lette$ of un/e$tain: inconsi/e$ation fo$ the banQs ne:otiation of its si:ht /$afts'the Cou$t hel/ that the /$a7e$ can still be ?a/e liableun/e$ the lette$ of un/e$tain: e,en if he is /ischa$:e/ /ueto the banQs failu$e to p$otest the non2acceptance of the/$afts. The Cou$t e1plaine/' thus;

Petitione$' ho7e,e$' can still be ?a/e liable un/e$ the lette$of un/e$tain:. It bea$s st$essin: that it is a sepa$atecont$act f$o? the si:ht /$aft. The liabilit% of petitione$un/e$ the lette$ of un/e$tain: is /i$ect an/ p$i?a$%. It isin/epen/ent f$o? his liabilit% un/e$ the si:ht /$aft. iabilit%subsists on it e,en if the si:ht /$aft 7as /ishono$e/ fo$ non2acceptance o$ non2pa%?ent.

Respon/ent a:$ee/ to pu$chase the /$aft an/ c$e/itpetitione$ its ,alue upon the un/e$tain: that he 7ill$ei?bu$se the a?ount in case the si:ht /$aft is /ishono$e/.

The ban 7oul/ ce$tainl% not ha,e a:$ee/ to :$antpetitione$ an a/,ance e1po$t pa%?ent 7e$e it not fo$ thelette$ of un/e$tain:. The consi/e$ation fo$ the lette$ of un/e$tain: 7as petitione$Qs p$o?ise to pa% $espon/ent the,alue of the si:ht /$aft if it 7as /ishono$e/ fo$ an% $easonb% the 5an of Seoul.""

Thus' not7ithstan/in: petitione$Qs alle:e/ failu$e to co?pl%7ith the $eui$e?ents of notice of /ishono$ an/ p$otestun/e$ Sections 8)"< an/ (&B'"& $especti,el%' of theNe:otiable Inst$u?ents a7' $espon/ent ?a% not escape itsliabilit% un/e$ the sepa$ate un/e$tain:s' 7he$e $espon/entp$o?ise/ to pa% on /e?an/ the full a?ount of the /$afts.

The ne1t uestion' the$efo$e' is 7hethe$ the $eal estate?o$t:a:e also se$,e/ as secu$it% fo$ $espon/entQs /$aftsthat 7e$e not accepte/ an/ pai/ b% the 7an: u 5an' t/.

Respon/ent e1ecute/ a $eal estate ?o$t:a:e containin: aHblanet ?o$t:a:e clause'H also no7n as a H/$a:netclause.H It has been settle/ in a lon: line of /ecisions that?o$t:a:es :i,en to secu$e futu$e a/,ance?ents a$e ,ali/an/ le:al cont$acts' an/ the a?ounts na?e/ asconsi/e$ation in sai/ cont$acts /o not li?it the a?ount fo$7hich the ?o$t:a:e ?a% stan/ as secu$it% if f$o? the fou$co$ne$s of the inst$u?ent the intent to secu$e futu$e an/othe$ in/ebte/ness can be :athe$e/."

In Union 5an of the Philippines ,. Cou$t of *ppeals'" thenatu$e of a /$a:net clause 7as e1plaine/' thus;

Is one 7hich is speci@call% ph$ase/ to subsu?e all /ebts of past an/ futu$e o$i:ins. Such clauses a$e Hca$efull%sc$utini9e/ an/ st$ictl% const$ue/.H Mo$t:a:es of thischa$acte$ enable the pa$ties to p$o,i/e continuous /ealin:s'the natu$e o$ e1tent of 7hich ?a% not be no7n o$anticipate/ at the ti?e' an/ the% a,oi/ the e1pense an/incon,enience of e1ecutin: a ne7 secu$it% on each ne7

t$ansaction * H/$a:net clauseH ope$ates as a con,enience *s $e:a$/s the issue of 7hethe$ $espon/ent ?a% still


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t$ansaction. * /$a:net clause ope$ates as a con,eniencean/ acco??o/ation to the bo$$o7e$s as it ?aes a,ailablea//itional fun/s 7ithout thei$

ha,in: to e1ecute a//itional secu$it% /ocu?ents' the$eb%sa,in: ti?e' t$a,el' loan closin: costs' costs of e1t$a le:alse$,ices' $eco$/in: fees' et cete$a."8

1 1 1

Petitione$' the$efo$e' 7as not p$eclu/e/ f$o? seein: thefo$eclosu$e of the $eal estate ?o$t:a:e base/ on the unpai//$afts /$a7n b% $espon/ent. In an% case' $espon/ent ha/a/?itte/ that asi/e f$o? the unpai/ /$afts' $espon/ent alsoha/ /ue an/ /e?an/able loans secu$e/ f$o? anothe$account as e,i/ence/ b% P$o?isso$% Notes PN Nos. 5DS2!!(28' 5DS2!"!F8 *' 5DS2PC2!!B2F8 an/ 5DS2!!&F8.

-o7e,e$' the Cou$t of *ppeals in,ali/ate/ the e1t$a>u/icialfo$eclosu$e of the ?o$t:a:e on the :$oun/ that petitione$ha/ faile/ to fu$nish $espon/ent pe$sonal notice of the salecont$a$% to the stipulation in the $eal estate ?o$t:a:e.

Petitione$' on the othe$ han/' clai?s that un/e$ pa$a:$aph(B") of the $eal estate ?o$t:a:e' pe$sonal notice of thefo$eclosu$e sale is not a $eui$e?ent to the ,ali/it% of thefo$eclosu$e sale.

* pe$usal of the $eco$/s of the case sho7s that a notice of she$i4Qs saleect p$ope$ties on anua$% &'()88 the ce$ti@cate of sale 7as annotate/ on Ma$ch Bu/icial sale e1ecute/ b% theShe$i4 of *ntipolo' E1hibit H"u/icial sale' E1hibit H"&H $etu$n ca$/ e,i/encin:$eceipt b% plainti4 of the notice of e1t$a>u/icial sale an/E1hibit HB(H a3/a,it of publication.

The Cou$t a/opts an/ app$o,es the afo$euote/ @n/in:s b%the RTC' the sa?e bein: full% suppo$te/ b% the e,i/ence on$eco$/.

+-ERE#ORE' the instant petition fo$ $e,ie7 on ce$tio$a$i isGR*NTED an/ the /ecision an/ $esolution of the Cou$t of *ppeals in C*2G.R. CV No. &))"( a$e REVERSED an/ SET*SIDE. The /ecision of the Re:ional T$ial Cou$t 5$anch "'*ntipolo' Ri9al in Ci,il Case No. (&82* an/ R Case No. )!28 is REINST*TED.

SO ORDERED.

Sec$eta$% of the Depa$t?ent of *:$a$ian Refo$? D*R


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ROMEO TESTON' $ep$esente/ G.R. NO. (

Sec$eta$% of the Depa$t?ent of *:$a$ian Refo$? D*RSec$eta$% fo$ the /ete$?ination an/ pa%?ent of >ustco?pensation of t7o pa$cels of a:$icultu$al lan/' /ocete/as SCC No. ust co?pensation of @fteen pa$cels of a:$icultu$al lan/' /ocete/ as SCC No.


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na?e of GSIS on Dece?be$ 8' ()88' he bou:ht the lotsf$o? *** on *p$il B&' ()8)' he ,olunta$il% o4e$e/ to sellsai/ p$ope$ties to the D*R un/e$ R.*. No. & on Ma% '()8)' he info$?e/ GSIS of his o4e$ to sell the p$ope$ties tothe D*R subseuentl%' GSIS consoli/ate/ o7ne$ship o,e$the lots in its na?e on No,e?be$ &' ())!' GSIS e1ecute/ aDee/ of T$ansfe$ in fa,o$ of the D*R' b% ,i$tue of 7hich' TCTNos. T288B to T28)( 7e$e issue/ on Dece?be$ ((' ())!in the na?e the Republic of the Philippines b% the Re:iste$

of Dee/s of Masbate on *p$il (' ())(' TCT Nos. T2)< to T2(!" 7e$e issue/ in the na?es of fa$?e$ bene@cia$ies/espite $epeate/ /e?an/s' the 5P an/ the D*R $efuse/ to/ete$?ine an/ pa% the >ust co?pensation fo$ the lots. 5oth cases 7e$e $ae/ to RTC' Masbate' 5$anch


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acui$e/ b% plainti4 Ro?eo Teston f$o? /efen/ant D5P b%,i$tue of a /ee/ of con/itional sale /ate/ ul% (&' ()8' 7ithD5P as con/itional ,en/o$ an/ Ro?eo Teston as con/itional,en/ee. -o7e,e$ the sai/ con/itional sale 7as $escin/e/ in())! in ,ie7 of plainti4s failu$e to up/ate his account' 7hohas been info$?e/ of sai/ $escission pe$ lette$ of D5P /ate/Septe?be$ B

Teston has no $i:ht 7hatsoe,e$ to ?ae an% ,olunta$% o4e$to sell the p$ope$ties in uestion to the D*R ?uch ?o$e toas the Cou$t sic /ete$?ination an/ pa%?ent of >ustco?pensation.K)L

On Ma$ch B&' ())' a ?otion fo$ $econsi/e$ationK(!L 7as@le/ b% Pe>o 5uen,ia>e 6 *ssociates' the co??on counselof petitione$ an/ Cola$ina' but it 7as /enie/ b% the RTC inits O$/e$ /ate/ *p$il B

RTC is :i,en the option to ha,e a >oint hea$in: o$ to o$/e$consoli/ation if the ?otion in,ol,es a co??on uestion of la7 o$ fact' pu$suant to Section (' Rule "B of the ()) Rulesof Ci,il P$oce/u$e since SCC Nos.


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all $espects. #u$the$?o$e' he conten/s that the RTC' in@n/in: that the co?plaint in SCC No.


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o7ne$ship as $e/e?ptione$ 7hile petitione$ clai?so7ne$ship as bu%e$. Clea$l%' the causes of action in the t7ocases a$ose f$o? /i4e$ent e,ents o$ t$ansactions' in,ol,e/i4e$ent issues' an/ ulti?atel% 7ill /epen/ on /i4e$ente,i/ence.

The$efo$e' the RTC e1cee/e/ its >u$is/iction in settin: the >oint t$ial of the t7o cases. Consoli/ation shoul/ be /enie/7hen p$e>u/ice 7oul/ $esult to an% of the pa$ties o$ 7oul/

cause co?plications' /ela%' cut o4' o$ $est$ict the $i:hts of apa$t%'KBBL as in this case. In ,ie7 of the i?p$ope$ consoli/ation' the RTC >u/:e 7aseuall% less than >u/icious in /is?issin: SCC No. ustice an/ fai$ness. It has to be acco$/e/ the7ei:ht it /ese$,es. In ,ie7 of the fo$e:oin:' the Cou$t 7ill not /el,e on theuestion of 7hethe$ petitione$s co?plaint faile/ to state acause of action as it is p$i?a$il% 7ithin the >u$is/iction of theRTC to /ete$?ine afte$ /ue hea$in:.

+-ERE#ORE' the instant petition is GR*NTED. The assaile/Decision /ate/ Ma$ch )' B!!! an/ Resolution /ate/ *u:ust


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S O S OD E C I S I O NCORON*' .;

This is a petition fo$ $e,ie7 on ce$tio$a$iK(L of the No,e?be$)' B!! /ecisionKBL of the Cou$t of *ppeals C* in C*2G.R.SP No. BB&!. On Ma$ch Bu/:e of RTC 5$anch (B!/i/ not ob>ect. Respon/ents ?otion fo$ $econsi/e$ation 7as

/enie/ in an o$/e$ /ate/ Septe?be$ ' B!!!.Respon/ent then @le/ a petition fo$ ce$tio$a$i an/?an/a?usKu/icialfo$eclosu$e. Petitione$s conten/ that peculia$ ci$cu?stances in theinstant case ?ae it an e1ception f$o? the :ene$al $ule onthe ?iniste$ial /ut% of cou$ts to issue 7$its of possession.Gi,en that the issuance of a 7$it of possession in this case?ust be liti:ate/' consoli/ation 7ith the pen/in: case onthe nulli@cation of e1t$a2>u/icial fo$eclosu$e is ?an/ato$%because both p$ocee/in:s in,ol,e the sa?e pa$ties an/sub>ect ?atte$. Respon/ent' on the othe$ han/' insists that theconsoli/ation of the e1 pa$te petition fo$ the issuance of a

7$it of possession 7ith the co?plaint fo$ nulli@cation of enfo$ce?ent of a 7$on: o$ p$otection of a $i:ht' o$ the


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p pe1t$a2>u/icial fo$eclosu$e of ?o$t:a:e is hi:hl% i?p$ope$an/ i$$e:ula$ because the$e a$e no co??on uestions of fact an/ la7 bet7een the t7o cases. Respon/ent alsoa$:ues that an% uestion $e:a$/in: the ,ali/it% of the?o$t:a:e o$ fo$eclosu$e cannot be a :$oun/ fo$ $efusin: theissuance of the 7$it of possession an/ shoul/' instea/' betaen up in the p$ocee/in:s fo$ the nulli@cation of thefo$eclosu$e.

+e $ule fo$ $espon/ent.

The o$/e$ fo$ a 7$it of possession issues as a ?atte$ of cou$se upon the @lin: of the p$ope$ ?otion an/ theapp$o,al of the co$$espon/in: bon/ if the $e/e?ptionpe$io/ has not %et lapse/.K&L If the $e/e?ption pe$io/ hase1pi$e/' then the @lin: of the bon/ is no lon:e$ necessa$%.*n% an/ all uestions $e:a$/in: the $e:ula$it% an/ ,ali/it%of the sale is left to be /ete$?ine/ in a subseuent

p$ocee/in: an/ such uestions ?a% not be $aise/ as a >usti@cation fo$ opposin: the issuance of a 7$it of possession.KL In Santia:o ,. Me$chants Ru$al 5an of Tala,e$a' Inc.'KL 7e/e@ne/ the natu$e of a petition fo$ a 7$it of possession;

The p$ocee/in: in a petition fo$ a 7$it of possession is e1pa$te an/ su??a$% in natu$e. It is a >u/icial p$ocee/in:b$ou:ht fo$ the bene@t of one pa$t% onl% an/ 7ithout noticeb% the cou$t to an% pe$son a/,e$se of inte$est. It is ap$ocee/in: 7he$ein $elief is :$ante/ 7ithout :i,in: thepe$son a:ainst 7ho? the $elief is sou:ht an oppo$tunit% tobe hea$/.

5% its ,e$% natu$e' an e1 pa$te petition fo$ issuance of a 7$itof possession is a non2liti:ious p$ocee/in:.K8L It is a >u/icialp$ocee/in: fo$ the enfo$ce?ent of oneAs $i:ht of possessionas pu$chase$ in a fo$eclosu$e sale. It is not an o$/ina$% suit@le/ in cou$t' b% 7hich one pa$t% sues anothe$ fo$ the

: p : 'p$e,ention o$ $e/$ess of a 7$on:.K)L On the othe$ han/' b% its natu$e' a petition fo$ nulli@cationo$ annul?ent of fo$eclosu$e p$ocee/in:s contests thep$esu?e/ $i:ht of o7ne$ship of the bu%e$ in a fo$eclosu$esale an/ puts in issue such p$esu?e/ $i:ht of o7ne$ship.

Thus' a pa$t% sche?in: to /efeat the $i:ht to a 7$it of possession of a bu%e$ in a fo$eclosu$e sale 7ho ha/ al$ea/%

consoli/ate/ his o7ne$ship o,e$ the p$ope$t% sub>ect of thefo$eclosu$e sale can si?pl% $eso$t to the subte$fu:e of @lin:a petition fo$ nulli@cation of fo$eclosu$e p$ocee/in:s 7ith?otion fo$ consoli/ation of the petition fo$ issuance of a7$it of possession. This 7e cannot allo7 as it 7ill $en/e$nu:ato$% the p$esu?e/ $i:ht of o7ne$ship' as 7ell as the$i:ht of possession' of a bu%e$ in a fo$eclosu$e sale' $i:hts7hich a$e suppose/ to be i?ple?ente/ in an e1 pa$tepetition fo$ issuance of a 7$it of possession.

5esi/es' the ?e$e fact that the p$esu?e/ $i:ht of o7ne$ship is conteste/ an/ ?a/e the basis of anothe$action /oes not b% itself ?ean that the p$ocee/in:s fo$issuance of a 7$it of possession 7ill beco?e :$oun/less.

The p$esu?e/ $i:ht of o7ne$ship an/ the $i:ht of possession shoul/ be $especte/ until an/ unless anothe$pa$t% successfull% $ebuts that p$esu?ption in an action fo$nulli@cation of the fo$eclosu$e p$ocee/in:s. *s such' an/ inconnection 7ith the issuance of a 7$it of possession' the:$ant of a co?plaint fo$ nulli@cation of fo$eclosu$ep$ocee/in:s is a $esoluto$% con/ition' not a suspensi,econ/ition. Gi,en the fo$e:oin: /iscussion' it is clea$ that thep$ocee/in:s fo$ the issuance of a 7$it of possession shoul/not be consoli/ate/ 7ith the case fo$ the /ecla$ation of nullit% of a fo$eclosu$e sale. The :la$in: /i4e$ence in thenatu$e of the t7o ?ilitates a:ainst thei$ consoli/ation.

The lon:2stan/in: $ule is that p$ocee/in:s fo$ the issuanceof a 7$it of possession a$e e1 pa$te an/ non2liti:ious innatu$e.K(!L The onl% e1e?ption f$o? this $ule is *cti,e

+oo/ P$o/ucts Co.' Inc. ,. Cou$t of *ppealsK((L 7he$e the issuance of a 7$it of possession 7ith the p$ocee/in:s fo$


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ppconsoli/ation of the p$ocee/in:s fo$ the issuance of a 7$itof possession an/ nulli@cation of fo$eclosu$e p$ocee/in:s7as allo7e/ follo7in: the p$o,isions on consoli/ation in theRules of Cou$t. -o7e,e$' the ci$cu?stances in this case a$esubstantiall% /istinct f$o? that in *cti,e +oo/. The$efo$e'the e1ception :$ante/ in that case cannot be applie/ he$e. In *cti,e +oo/' the petition fo$ 7$it of possession 7as @le/

befo$e the e1pi$ation of the one2%ea$ $e/e?ption pe$io/K(BL7hile' in this case' the petition fo$ 7$it of possession 7as@le/ afte$ the one2%ea$ $e/e?ption pe$io/ ha/ lapse/.Mo$eo,e$' in *cti,e +oo/' title to the liti:ate/ p$ope$t% ha/not been consoli/ate/ in the na?e of the ?o$t:a:ee.

The$efo$e' in that case' the ?o$t:a:ee /i/ not %et ha,e anabsolute $i:ht o,e$ the p$ope$t%. In De Ve$a ,. *:lo$o'K("L7e $ule/;

The possession of lan/ beco?es an absolute $i:ht of the

pu$chase$ as con@$?e/ o7ne$. The pu$chase$ can /e?an/possession at an% ti?e follo7in: the consoli/ation of o7ne$ship in his na?e an/ the issuance to hi? of a ne7t$ansfe$ ce$ti@cate of title. *fte$ the consoli/ation of title inthe bu%e$s na?e fo$ failu$e of the ?o$t:a:o$ to $e/ee? thep$ope$t%' the 7$it of possession beco?es a ?atte$ of $i:ht.K(


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CES*R NEPOMUCENO' EON *RCI*S an/ RU5EN*VENIDO' Petitione$s' ,. T-E -ON. COMMISSION ONEECTIONS an/ OSC*R *SERN*' Respon/ents.

Cefe$ino P. Pa/ua' *?a/o R. Pe$e9 an/ Ma$ciano P. 5$ion' $.'fo$ Petitione$s.

The Solicito$ Gene$al fo$ Respon/ents.

S0*5US

(. REMEDI* *+ CIVI PROCEDURE DEMURRER TOEVIDENCE CONSTRUED. Section ( of Rule "& of the Rulesof Cou$t autho$i9es a >u/:?ent on the ?e$its of the case7ithout the /efen/ant ha,in: to sub?it e,i/ence on his

pa$t as he 7oul/ o$/ina$il% ha,e to /o' if it is sho7n b%plainti4Qs e,i/ence that the latte$ is not entitle/ to the $elief sou:ht. The /e?u$$e$' the$efo$e' is an ai/ o$ inst$u?ent fo$the e1pe/itious te$?ination of an action' si?ila$ to a ?otionto /is?iss' 7hich the cou$t o$ t$ibunal ?a% eithe$ :$ant o$/en%.

B. ID. ID. ID. DENI* MERE0' INTEROCUTOR0 INC-*R*CTER. The $eui$e?ent of Section ( of Rule "7oul/ onl% appl% if the /e?u$$e$ is :$ante/' fo$ in this

e,ent' the$e 7oul/ in fact be an a/>u/ication on the ?e$itsof the case' lea,in: nothin: ?o$e to be /one' e1ceptpe$haps to inte$pose an appeal. -o7e,e$' a /enial of the/e?u$$e$ is not a @nal >u/:?ent' but ?e$el% inte$locuto$% incha$acte$ as it /oes not @nall% /ispose of the case' the/efen/ant ha,in: %et the $i:ht to p$esent his e,i/ence' asp$o,i/e/ fo$ un/e$ Section ( of Rule "& of the Rules of Cou$t.

". ID. SPECI* CIVI *CTION CERTIOR*RI #*IURE TOST*TE T-E #*CTS *ND T-E *+ ON +-IC- *N ORDERDEN0ING * DEMURRER TO EVIDENCE IS 5*SED NOT *

Do?in:o' B8 SCR* 8)!' +e ha,e $ule/ that . . . Section (B'*nticle VIII no7 Section )' *$ticle = of the Constitution an/Section (' Rule "' Rules of Cou$t' 7hich $eui$e e1p$ess@n/in:s of fact in a /ecision' ha,e no application to theuestione/ o$/e$. -e$e in,ol,e/ is not a /ecision on the?e$its but a ?e$e o$/e$ upon a ?otion to $econsi/e$. Thechallen:e/ o$/e$ bein: ?e$el% an inte$locuto$% o$/e$ an/not a @nal >u/:?ent o$ /ecision' no abuse of /isc$etion 7as

co??itte/ b% $espon/ent Co?elec in its failu$e to state thefacts an/ the la7 on 7hich its o$/e$ /en%in: petitione$sQ/e?u$$e$ to e,i/ence is base/.

TEE-*NEE' .' /issentin:;chan$ob(es ,i$tual (a7 lib$a$%

(. EECTIONS TURNCO*TISM * PRE2EECTION C*SESSEEING TO DISU*I#0 +INNER ON GROUND T-EREO#S-OUD 5E DISMISSED *#TER *NU*R0 "!' ()8!EECTIONS REMEDIES. Su3ce it to $ep$o/uce' ho7e,e$'

7hat I ha/ st$esse/ in ?% abo,e cite/ sepa$ate opinion of Ma% l&' ()8!' ,i9;H I $eite$ate ?% stan/ that all such p$e2election cases seein: to /isualif% the 7inne$ si?pl% onthe :$oun/ of alle:e/ tu$ncoatis? shoul/ be o$/e$e//is?isse/ afte$ the last anua$% "!th elections' sub>ect tothe @lin: of an app$op$iate uo 7a$$anto action o$ electionp$otest a:ainst the 7inne$ in the app$op$iate fo$u?.H

D E C I S I O N

ESCOIN' .;

This is the thi$/ ti?e that petitione$s ha,e co?e to thisCou$t to challen:e the actuations of the $espon/entCo??ission on Elections in PDC Case No. &' entitle/HOsca$ ase$na' Petitione$' ,e$sus Cesa$ Nepo?uceno' Et*l.' Respon/ents.Hc$ala7 ,i$tua(a7 lib$a$%

Petitione$s Cesa$ Nepo?uceno' eon *$cillas an/ Ruben Dece?be$ BB' ()8!' +e /is?isse/ this secon/ petition' as


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*,eni/o 7e$e the o3cial can/i/ates of the NacionalistaPa$t% in the ()8! local elections fo$ the positions of ?a%o$',ice2?a%o$ an/ ?e?be$ of the San::unian: 5a%an'$especti,el%' of Sta. Rosa' a:una. On anua$% (


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&' 7ith petitione$sQ ?anifestation that Hthe% /o not 7ai,ethei$ $i:ht to uestion the >u$is/iction of the Co?elecHha,in: been place/ on $eco$/. *fte$ $espon/ent Osca$ase$na ha/ te$?inate/ the p$esentation of his e,i/ence'petitione$s @le/ thei$ $especti,e Motions toDis?issFDe?u$$e$ to E,i/ence' 7hich 7e$e seasonabl%oppose/ b% $espon/ent ase$na. Re>oin/e$s an/?e?o$an/a 7e$e @le/ b% the pa$ties' an/ on Ma$ch "('

()8B' the Co?elec issue/ the follo7in: o$/e$ /en%in: the/e?u$$e$ to e,i/ence' to 7it;chan$obles ,i$tual la7lib$a$%

HRESPONDENTS 50 COUNSE in/i,i/uall% @le/ /e?u$$e$s tothe e,i/ence' to 7hich the petitione$ /i/ not lose ti?e tooppose. It is unifo$?l% ?aintaine/ b% sai/ $espon/ents thatthe e,i/ence al$ea/% a//uce/ b% the petitione$ /oes notestablish a :oo/ cause to p$ocee/ a:ainst the?' fo$ 7hich$eason the petition as a:ainst the? shoul/ be /is?isse/.Petitione$ /isa:$ee/' a$:uin: othe$7ise.

HThe /e?u$$e$s shoul/ be DENIED. The Co??issionKSecon/ Di,isionL 7oul/ $athe$ ha,e the co?plete facts an/e,i/ence of the pa$ties upon 7hich to $each a /ecision thanp$e?atu$el% :o into it no7 upon the facts an/ e,i/ence of the petitione$ onl%. The $ationale behin/ such a p$oce/u$e isto enable this 5o/% to p$ope$l% a/>u/icate the case on its?e$its an/ to ,entilate the a/,e$sa$% issues on the basis of all the facts an/ e,i/ence p$esente/ b% the conten/in:pa$ties. KSee Sia%n:co ,. Costobolo' No. 2BB&!' #eb. B8'

()8BL K*nne1 HH' Rollo' p. 8)L

Petitione$sQ ?otions fo$ $econsi/e$ation of the abo,e o$/e$7e$e lie7ise /enie/.

On *p$il (&' ()8B' petitione$s @le/ 7ith the Co?elecanothe$ Motion to Dis?iss' 7hich 7as /enie/ in an o$/e$/ate/ *p$il (' ()8B. This o$/e$ 7as si:ne/ fo$ the /i,isionb% p$esi/in: co??issione$ uis . a$/i9abal K*nne1 HTH'Rollo' p. (BL. #$o? these o$/e$s' petitione$s ca?e to Us'alle:in:;chan$ob(es ,i$tual (a7 lib$a$%

DISCRETION *MOUNTING TO *N *CT IN E=CESS O# OR+IT-OUT URISDICTION IN RE#USING TO RESOVEPETITIONERSQ DEMURRER TO EVIDENCE 50 +*0 O# *

UDGMENT +-EREIN IT S-OUD ST*TE T-E #*CTS *ND T-E*+ ON +-IC- ITS RESOUTION IS 5*SED.

B. T-*T T-E RESPONDENT COMMITTED GR*VE *5USEO# DISCRETION' *MOUNTING TO *C O# URISDICTION' IN

DEN0ING PETITIONERSQ MOTION TO DISMISS.

". T-*T T-E RESPONDENT COMEEC COMMITTEDGR*VE *5USE O# DISCRETION' *MOUNTING TO *C O#

URISDICTION' IN PROMUG*TING T-E RESOUTION O#*PRI (' ()8B T-ROUG- T-E *CT O# ON0 ONE MEM5ERO# * DIVISION.

Petitione$s a$e ob,iousl% ?isle/ b% the title of Rule "& of theRules of Cou$t' Hu/:?ent on De?u$$e$ to E,i/ence.H Sai/

Rule' consistin: of onl% one section' allo7s the /efen/ant to?o,e fo$ /is?issal of the case afte$ the plainti4 hasp$esente/ his e,i/ence on the :$oun/ of insu3cienc% of e,i/ence' an/ p$o,i/es fo$ the e4ects of the /is?issal o$non2/is?issal' as the case ?a% be' on the $i:ht of the/efen/ant to p$esent his cause. Othe$7ise state/' itautho$i9es a >u/:?ent on the ?e$its of the case 7ithout the/efen/ant ha,in: to sub?it e,i/ence on his pa$t as he7oul/ o$/ina$il% ha,e to /o' if it is sho7n b% plainti4Qse,i/ence that the latte$ is not entitle/ to the $elief sou:ht.

The /e?u$$e$' the$efo$e' is an ai/ o$ inst$u?ent fo$ thee1pe/itious te$?ination of an action' si?ila$ to a ?otion to/is?iss' 7hich the cou$t o$ t$ibunal ?a% eithe$ :$ant o$/en%.chan$obles ,i$tuala7lib$a$%chan$obles.co?;chan$obles.co?.ph

It is thus appa$ent that the $eui$e?ent of Section ( of Rule" ( 7oul/ onl% appl% if the /e?u$$e$ is :$ante/' fo$ in thise,ent' the$e 7oul/ in fact be an a/>u/ication on the ?e$itsof the case' lea,in: nothin: ?o$e to be /one' e1ceptpe$haps to inte$pose an appeal. -o7e,e$' a /enial of the/e?u$$e$ is not a @nal >u/:?ent' but ?e$el% inte$locuto$% in

cha$acte$ as it /oes not @nall% /ispose of the case' the Me?be$s of the National *sse?bl%' 7hich shall be hea$/


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/efen/ant ha,in: %et the $i:ht to p$esent his e,i/ence' asp$o,i/e/ fo$ un/e$ Section ( of Rule "&.

In Est$a/a ,. Sto. Do?in:o' B +e ha,e $ule/ that.H . .Section (B' *$ticle VIII' Constitution an/ Section (' Rule "'Rules of Cou$t' 7hich $eui$e e1p$ess @n/in:s of fact in a/ecision' ha,e no application to the uestione/ O$/e$. -e$ein,ol,e/ is not a /ecision on the ?e$its but a ?e$e o$/e$

upon a ?otion to $econsi/e$. The >u/:e coul/ si?pl% /ishout a $outine capsule2fo$? o$/e$ YDenie/ fo$ lac of ?e$itQo$ Y?otion fo$ $econsi/e$ation /enie/.Q *n/ %et' that in/ of o$/e$ 7oul/ se$,e to i??uni9e the >u/:e a:ainst anunla7ful ne:lect2of2/ut% cha$:e. . . .Hc$ala7 ,i$tua(a7lib$a$%

The challen:e/ o$/e$ bein: ?e$el% an inte$locuto$% o$/e$an/ not a @nal >u/:?ent o$ /ecision' no abuse of /isc$etion7as co??itte/ b% $espon/ent Co?elec in its failu$e to state

the facts an/ the la7 on 7hich its o$/e$ /en%in: petitione$sQ/e?u$$e$ to e,i/ence is base/.

The secon/ issue $aise/ b% petitione$s ha$/l% /ese$,esse$ious consi/e$ation. It ha/ lon: been lai/ to $est in ou$Resolutions in G.R. No. &


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VICENTE an/ M*. SUMI*NG DE ROS*RIO' $espon/ents.D E C I S I O NP*NG*NI5*N' .;

+hen a /e?u$$e$ to e,i/ence :$ante/ b% a t$ial cou$t is$e,e$se/ on appeal' the $e,ie7in: cou$t cannot $e?an/ thecase fo$ fu$the$ p$ocee/in:s. Rathe$' it shoul/ $en/e$

>u/:?ent on the basis of the e,i/ence p$o4e$e/ b% the

plainti4. Inas?uch as /efen/ants in the p$esent casea/?itte/ the /ue e1ecution of the P$o?isso$% Note both inthei$ *ns7e$ an/ /u$in: the p$et$ial' the appellate cou$tshoul/ ha,e $en/e$e/ >u/:?ent on the bases of that Notean/ on the othe$ pieces of e,i/ence a//uce/ /u$in: thet$ial.

The Case

5efo$e us is a Petition fo$ Re,ie7 on Ce$tio$a$i of the

Dece?be$ )' ()) DecisionK(L an/ the Ma% "' ()))ResolutionKBL of the Cou$t of *ppeals in C*2GR CV No.


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install?ents. Despite $epeate/ /e?an/s' the% faile/ to pa%thei$ obli:ations un/e$ thei$ P$o?isso$% Note.

On une ' ())"' petitione$ @le/ a Co?plaintKL fo$ thecollection of a su? of ?one% befo$e the Re:ional T$ial Cou$tof Manila' 5$anch (ecti,e an/ to assist the pa$ties inobtainin: >ust' spee/% an/ ine1pensi,e /ete$?ination of anaction.

Issue

The petitione$ $aises this lone issue;

The -ono$able Cou$t of *ppeals patentl% e$$e/ in o$/e$in:the $e?an/ of this case to the t$ial cou$t instea/ of $en/e$in: >u/:?ent on the basis of petitione$s e,i/ence.K("L

#o$ an o$/e$l% /iscussion' 7e shall /i,i/e the issue into t7opa$ts; a le:al e4ect of the De?u$$e$ to E,i/ence' an/ bthe /ate 7hen the obli:ation beca?e /ue an/ /e?an/able.

The Cou$ts Rulin:

The Petition has ?e$it. +hile the C* co$$ectl% $e,e$se/ thet$ial cou$t' it e$$e/ in $e?an/in: the case Hfo$ fu$the$p$ocee/in:s.H

Conseuences of a Re,e$sal' on *ppeal' of a De?u$$e$ toE,i/ence

Petitione$ conten/s that if a /e?u$$e$ to e,i/ence is$e,e$se/ on appeal' the /efen/ant shoul/ be /ee?e/ to

ha,e 7ai,e/ the $i:ht to p$esent e,i/ence' an/ thell t t h l/ / > / t th b i f th

p$ocee/ to hea$ an/ $ecei,e the /efen/ants e,i/ence soth t ll th f t / i/ f th t /i ti


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appellate cou$t shoul/ $en/e$ >u/:?ent on the basis of thee,i/ence sub?itte/ b% the plainti4. * $e?an/ to the t$ialcou$t Hfo$ fu$the$ p$ocee/in:sH 7oul/ be an out$i:ht/e@ance of Rule ""' Section ( of the ()) Rules of Cou$t.

On the othe$ han/' $espon/ents a$:ue that the petitione$7as not necessa$il% entitle/ to its clai?' si?pl% on the:$oun/ that the% lost thei$ $i:ht to p$esent e,i/ence in

suppo$t of thei$ /efense 7hen the De?u$$e$ to E,i/ence7as $e,e$se/ on appeal. The% st$ess that the C* ?e$el%foun/ the? in/ebte/ to petitione$' but 7as silent on 7henthei$ obli:ation beca?e /ue an/ /e?an/able.

The ol/ Rule "& of the Rules of Cou$t 7as $e7o$/e/ un/e$Rule "" of the ()) Rules' but the conseuence on appealof a /e?u$$e$ to e,i/ence 7as not chan:e/. *s a?en/e/'the pe$tinent p$o,ision of Rule "" $ea/s as follo7s;

SECTION (. De?u$$e$ to e,i/ence.*fte$ the plainti4 hasco?plete/ the p$esentation of his e,i/ence' the /efen/ant?a% ?o,e fo$ /is?issal on the :$oun/ that upon the factsan/ the la7 the plainti4 has sho7n no $i:ht to $elief. If his?otion is /enie/' he shall ha,e the $i:ht to p$esente,i/ence. If the ?otion is :$ante/ but on appeal the o$/e$of /is?issal is $e,e$se/ he shall be /ee?e/ to ha,e 7ai,e/the $i:ht to p$esent e,i/ence.K(u/ication as 7ell asbefo$e the appellate cou$ts' in case of appeal. Nothin: islost. The /oct$ine is but in line 7ith the establishe/p$oce/u$al p$ecepts in the con/uct of t$ials that the t$ialcou$t libe$all% $ecei,e all p$o4e$e/ e,i/ence at the t$ial toenable it to $en/e$ its /ecision 7ith all possibl% $ele,antp$oofs in the $eco$/' thus assu$in: that the appellate cou$ts

upon appeal ha,e all the ?ate$ial befo$e the? necessa$% to?ae a co$$ect >u/:?ent' an/ a,oi/in: the nee/ of $e?an/in: the case fo$ $et$ial o$ $eception of i?p$ope$l%e1clu/e/ e,i/ence' 7ith the possibilit% the$eafte$ of stillanothe$ appeal' 7ith all the conco?itant /ela%s. The $ule'ho7e,e$' i?poses the con/ition b% the sa?e toen that if his /e?u$$e$ is :$ante/ b% the t$ial cou$t' an/ the o$/e$ of /is?issal is $e,e$se/ on appeal' the ?o,ant losses his $i:htto p$esent e,i/ence in his behalf an/ he shall ha,e been/ee?e/ to ha,e electe/ to stan/ on the insu3cienc% of

plainti4s case an/ e,i/ence. In such e,ent' the appellatecou$t 7hich $e,e$ses the o$/e$ of /is?issal shall p$ocee/ to$en/e$ >u/:?ent on the ?e$its on the basis of plainti4se,i/ence. Un/e$sco$in: supplie/

In othe$ 7o$/s' /efen/ants 7ho p$esent a /e?u$$e$ to theplainti4s e,i/ence $etain the $i:ht to p$esent thei$ o7ne,i/ence' if the t$ial cou$t /isa:$ees 7ith the? if the t$ialcou$t a:$ees 7ith the?' but on appeal' the appellate cou$t/isa:$ees 7ith both of the? an/ $e,e$ses the /is?issal

o$/e$' the /efen/ants lose the $i:ht to p$esent thei$ o7ne,i/ence.K(L The appellate cou$t shall' in a//ition' $esol,ethe case an/ $en/e$ >u/:?ent on the ?e$its' inas?uch as a/e?u$$e$ ai?s to /iscou$a:e p$olon:e/ liti:ations.K(L

In the case at ba$' the t$ial cou$t' actin: on $espon/ents/e?u$$e$ to e,i/ence' /is?isse/ the Co?plaint on the:$oun/ that the plainti4 ha/ a//uce/ ?e$e hea$sa%e,i/ence. -o7e,e$' on appeal' the appellate cou$t $e,e$se/the t$ial cou$t because the :enuineness an/ the /ue

e1ecution of the /ispute/ pieces of e,i/ence ha/ in factbeen a/?itte/ b% /efen/ants.

*ppl%in: Rule "" Section ( of the ()) Rules of Cou$t theOn the cont$a$%' the Note e1p$essl% stipulate/ that the /ebtshoul/ be a?o$ti9e/ ?onthl% in install?ents of P(( &) fo$


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*ppl%in: Rule ""' Section ( of the ()) Rules of Cou$t' theC* shoul/ ha,e $en/e$e/ >u/:?ent on the basis of thee,i/ence sub?itte/ b% the petitione$. +hile the appellatecou$t co$$ectl% $ule/ that the /ocu?enta$% e,i/encesub?itte/ b% the Kpetitione$L shoul/ ha,e been allo7e/ an/app$eciate/ 111' an/ that the petitione$ p$esente/ uite anu?be$ of /ocu?enta$% e1hibits 111 enu?e$ate/ in theappeale/ o$/e$'K(8L 7e a:$ee 7ith petitione$ that the C*

ha/ su3cient e,i/ence on $eco$/ to /eci/e the collectionsuit. * $e?an/ is not onl% f$o7ne/ upon b% the Rules' it isalso lo:icall% unnecessa$% on the basis of the facts on$eco$/.

Due an/ De?an/able Obli:ation

Petitione$ clai?s that $espon/ents a$e liable fo$ the 7holea?ount of thei$ /ebt an/ the inte$est the$eon' afte$ the%/efaulte/ on the ?onthl% install?ents.

Respon/ents' on the othe$ han/' counte$ that theinstall?ents 7e$e not %et /ue an/ /e?an/able. Petitione$ha/ alle:e/l% allo7e/ the? to appl% thei$ p$o?otionse$,ices fo$ its @nancin: business as pa%?ent of theP$o?isso$% Note. This 7as suppose/l% e,i/ence/ b% theblan space left fo$ the /ate on 7hich the install?entsshoul/ ha,e co??ence/.K()L In othe$ 7o$/s' $espon/entstheo$i9e that the action fo$ i??e/iate enfo$ce?ent of thei$obli:ation is p$e?atu$e because its ful@ll?ent is /epen/ent

on the sole 7ill of the /ebto$. -ence' the% consi/e$ that thep$ope$ cou$t shoul/ @$st @1 a pe$io/ fo$ pa%?ent' pu$suantto *$ticles ((8! an/ (() of the Ci,il Co/e.

This contention is untenable. The act of lea,in: blan the/ue /ate of the @$st install?ent /i/ not necessa$il% ?eanthat the /ebto$s 7e$e allo7e/ to pa% as an/ 7hen the%coul/. If this 7as the intention of the pa$ties' the% shoul/ha,e so in/icate/ in the P$o?isso$% Note. -o7e,e$' it /i/not $eJect an% such intention.

shoul/ be a?o$ti9e/ ?onthl% in install?ents of P(('&) fo$t7el,e consecuti,e ?onths. +hile the speci@c /ate on7hich each install?ent 7oul/ be /ue 7as left blan' theNote clea$l% p$o,i/e/ that each install?ent shoul/ bepa%able each ?onth.

#u$the$?o$e' it also p$o,i/e/ fo$ an accele$ation clause an/a late pa%?ent penalt%' both of 7hich sho7e/ the intention

of the pa$ties that the install?ents shoul/ be pai/ at a/e@nite /ate. -a/ the% inten/e/ that the /ebto$s coul/ pa%as an/ 7hen the% coul/' the$e 7oul/ ha,e been no nee/ fo$these t7o clauses.

Ve$il%' the conte?po$aneous an/ subseuent acts of thepa$ties ?anifest thei$ intention an/ no7le/:e that the?onthl% install?ents 7oul/ be /ue an/ /e?an/able each?onth.KB!L In this case' the conclusion that the install?entsha/ al$ea/% beca?e /ue an/ /e?an/able is bolste$e/ b%

the fact that $espon/ents sta$te/ pa%in: install?ents on theP$o?isso$% Note' e,en if the checs 7e$e /ishono$e/ b%thei$ /$a7ee ban. +e a$e

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