8. Developers Group of Companies Inc. vs. CA GR no.

104583 march 8, 1993

!ila "e#rano

$ac%s& Developers Group of Companies, Inc. file# a complain% for 'Infrin(emen% an# Dama(es )i%h In*unc%ion' a(ains% +han(ri,-a In%erna%ional .o%el "ana(emen%, -%#., e% al. /he plain%iff alle(e# %ha% %he 0ureau of 1a%en%s ha# (ran%e# i% Cer%ifica%e of Re(is%ra%ion !o. 31904 for %he %ra#emar2 '+han(ri,-a', an# '+',lo(o, for res%auran% services, as recor#e# in i%s 1rincipal Re(is%er on "a3 31, 1983. /he #efen#an% )as ille(all3 usin( %he sai# %ra#e mar2 an# lo(o, %hus causin( pre*u#ice %o %he plain%iff for )hich i% )as en%i%le# %o #ama(es. Consi#erin( %ha% plain%iff shall sus%ain increase# #ama(es in %he con%inuous use of %he si(ns an# lo(o 4ecause of %he confusion of %he pu4lic as %o %he na%ure an# source of %he 4usiness offere# 43 %he plain%iff. In i%s ans)er, +han(ri,-a claime# %ha% i% )as %he le(al an# 4eneficial o)ner of %he sai# mar2 an# lo(o )hich i% an# i%s rela%e# 5uo2 Group of Companies ha# firs% a#op%e# in 1967 an# cause# %o 4e speciall3 #esi(ne# in 1985 for %heir ho%el 4usiness in China, .on( 5on(, "ala3sia, +in(apore an# /hailan#. I% also alle(e# %ha%, even 4efore %he complain% )as file#, i% ha# alrea#3 file# )i%h %he 0ureau of 1a%en%s a pe%i%ion a(ains% Developers for %he cancella%ion of %he re(is%ra%ion of %he %ra#e mar2 +han(ri,-a an# '+' lo(o in %he la%%er9s name an# for %he re(is%ra%ion of %he same in %he name of +han(ri,-a. :n ;ul3 7, 1991, ;u#(e $eli< ". #e Gu=man issue# a )ri% of preliminar3 in*unc%ion r #irec%in( %he #efen#an%s, %heir a(en%s, represen%a%ives, licensees, assi(nees an# all o%her persons ac%in( un#er %heir au%hori%3 an# permission %o #esis% from usin( an# con%inuin( %he use of plain%iff9s mar2 '+.A!GRI,-A', an# '+,lo(o' or an3 repro#uc%ion, coun%erfei%, cop3, or colora4le imi%a%ion %hereof. :n ;ul3 17, 1991, R/C issue# ano%her or#er, %o )i%& Ac%in( on %he '>r(en% Ex-Parte "o%ion %o Remove /he +i(ns '+han(ri,-a' an# '+,lo(o' >se# 43 /he Defen#an%s An# /o Ci%e Defen#an%s $or Con%emp%,' per +heriff9s Repor%, #efen#an%s have no% remove# %he si(ns an# or +,lo(o. :n Au(us% 1, 1991, +han(ri,-a file# a mo%ion %o lif% %he preliminar3 in*unc%ion, %hen file# )i%h %he respon#en% Cour% of Appeals a pe%i%ion for certiorari )i%h applica%ion for %emporar3, res%rainin( or#er an# preliminar3 in*unc%ion a(ains% %he or#ers issue# 43 %he %rial cour% on ;ul3 7, 1991, an# ;ul3 17, 1991.chanro4lesvir%uala)li4rar3chanro4les vir%ual la) li4rar3 :n !ovem4er 70, 1991, %he Cour% of Appeals 1 ren#ere# i%s #ecision, an# hel# %ha% %he or#ers #a%e# ;ul3 7 an# 17, 1991 ren#ere# 43 R/C )ere issue# )i%h (rave a4use of #iscre%ion. #eclare# !>-- an# ?:ID an# conse@uen%l3 +A/ A+IDA.A mo%ion for reconsi#era%ion )as file# 43 Developers 4u% %his )as #enie# hence %his appeal 43 Developers Issue& )he%her or no% %he pe%i%ioner )as en%i%le# %o %he )ri% of preliminar3 in*unc%ion issue# 43 %he %rial cour% pen#in( %rial on %he meri%s of %he char(e of infrin(emen% a(ains% %he priva%e respon#en%. .el#& !o. /o 4e en%i%le# %o an in*unc%ive )ri%, i% is necessar3 %ha% %here 4e a clear sho)in( of %he ri(h% claime# 43 %he applican% , al%hou(h no conclusive proof is necessar3 a% %ha% s%a(e. !ever%heless, i% mus% 4e sho)n, a% leas% %en%a%ivel3, %ha% i% e<is%s an# is no% vi%ia%e# 43 an3 su4s%an%ial challen(e or con%ra#ic%ion. /he +C conclusion is %ha% Developers has no% *us%ifie# %he issuance of %he )ri% of preliminar3 in*unc%ion 43 provin( %ha% i% has a le(al ri(h% %o %he #ispu%e# mar2 an# lo(o an# %ha% i% has sus%aine# in*ur3 as a resul% of %he use %hereof 43 +han(ri,-a. /he Cour% of Appeals #i# no% err in se%%in( asi#e %he or#ers of %he %rial cour% #a%e# ;ul3 7, 1991, an# ;ul3 17, 1991, for havin( 4een issue# )i%h (rave a4use of #iscre%ion. !o) %o %he proprie%3 of %he in*unc%ion or#er. +ec%ion 3, Rule 58, of %he Revise# Rules of Cour% provi#es& +ec. 3. Grounds for issuance of preliminary injunction. , A preliminar3 in*unc%ion ma3 4e (ran%e# a% an3 %ime af%er %he commencemen% of %he ac%ion an# 4efore *u#(men% )hen i% is es%a4lishe#& BaC /ha% %he plain%iff is en%i%le# %o %he relief #eman#e#, an# %he )hole or par% of such relief consis%s in res%rainin( %he commission or con%inuance of %he ac%s complaine# of, or in %he performance of an ac% or ac%s, ei%her for a limi%e# perio# or perpe%uall3D B4C /ha% %he commission or con%inuance of some ac% complaine# of #urin( %he li%i(a%ion or %he non,performance %hereof )oul# pro4a4l3 )or2 in*us%ice %o %he plain%iffD BcC /ha% %he #efen#an%s is #oin(, %hrea%ens, or is a4ou% %o #o, or is procurin( or sufferin( %o 4e #one, some ac% pro4a4l3 in viola%ion of %he plain%iff9s ri(h%s respec%in( %he su4*ec% of %he ac%ion, an# %en#in( %o ren#er %he *u#(men% ineffec%ual

E.ARA$:RA, %he challen(e# #ecision of %he Cour% of Appeals is A$$IR"AD. /he Re(ional /rial Cour% of Fue=on Ci%3 is #irec%e# %o procee# %o %he %rial on %he meri%s of Civil Case !o. 0,91,8486 an# %o #eci#e i% )i%h all #eli4era%e #ispa%ch. 9. "a4u3o farms Inc. vs. CA GR no. 140058 Au(. 1, 7007 s%ac3 lion(

$AC/+& Au(us% 77, 1969& 0ureau of -an#s #eclare# $rancisco Domin(o, Re3nal#o $lori#a, Cornelio 1ilipino an# +everino ?is%an, %hrou(h open, no%orious, an# e<clusive possession of -o% 1389 coverin( 144 hec%ares since 1933 are la)ful o)ners an# #irec%e# %hem %o confirm %heir %i%les 43 filin( %he appropria%e applica%ions. :c%o4er 1980& "a4u3o $arms Inc. 4ou(h% 69,937 s@ms of %he lan# from Domin(o, $lori#a, 1ilipino an# ?is%an, %o%alin( 69,937 s@uare me%ers an# en%ere# in%o a compromise se%%lemen% )i%h 6 o%her persons occup3in( %he proper%3, )hose applica%ions ha# 4een re*ec%e# 43 %he 0ureau an# file# an applica%ion for lan# re(is%ra%ion. R/C an# CA& (ran%e# applica%ion ;une 1998& a (roup of occupan%s en%ere# %he "a4ur3oGs lan#, #es%ro3e# %he fences an# #rove a)a3 i%s lives%oc2 :c%o4er 9, 1998& "a4u3o file# a complain% for in*unc%ion )i%h #ama(es, )i%h a pra3er for a %emporar3 res%rainin( or#er a(ains% ;uani%o Infan%e, Domin(o Infan%e, -i%o "an(ali#an, ;aime A@uino, ;ohn Doe, 1e%er Doe, an# Richar# Doe (ran%e# +heriff serve# copies an# foun# 5 persons cul%iva%in( %he lan# )ho claime# %o 4e farm )or2ers of An%onio +an%os refuse# %o (ive %heir names or receive copies of %he /R:. April 14, 1998& R/C issue# )ri% of preliminar3 in*unc%ion %o res%rain en%erin( an# cul%iva%in( in %he proper%3 an# serve# %o An%onio +an%os $e4ruar3 74, 1999& +an%os file# a special civil ac%ion for cer%iorari )i%h %he CA o :nl3 on $e4ruar3 16, 1999, %ha% he learne# of an# secure# a cop3 of %he or#er. o .e is an innocen% purchaser for value o (rave a4use of #iscre%ion for R/C %o enforce %he in*unc%ive )ri% a(ains% him since i% #i# no% have *uris#ic%ion over him CA& favoure# +an%os I++>A& EH! %he )ri% of in*unc%ion can 4e serve# %o %hose )ho are name# as #efen#an%s .A-D& !:. "a4u3o a#mi%%e# %ha% +an%os )as no% a #efen#an% since 'a% %he ins%i%u%ion of %he case in 1998, he #i# no% have a ri(h% over an3 por%ion. !ei%her )as he a %respasser or ac%in( on 4ehalf of %he #efen#an%s. 1reliminar3 in*unc%ion o or#er (ran%e# a% an3 s%a(e of an ac%ion prior %o final *u#(men%, re@uirin( a person %o refrain from a par%icular ac% o ancillar3 or preven%ive reme#3 , a )ri% of preliminar3 in*unc%ion ma3 %herefore 4e resor%e# %o 43 a par%3 %o pro%ec% or preserve his ri(h%s an# for no o%her purpose #urin( %he pen#enc3 of %he principal ac%ion o o4*ec% is %o preserve %he s%a%us @uo un%il %he meri%s of %he case can 4e hear# o !:/ a cause of ac%ion in i%self 4u% merel3 a provisional reme#3, an a#*unc% %o a main sui% /hus, a person )ho is no% a par%3 in %he main sui% canno% 4e 4oun# 43 an ancillar3 )ri% In%erven%ion o ac%ion is nei%her compulsor3 nor man#a%or3 4u% onl3 op%ional an# permissive o 7 re@uisi%es& BaC %he movan% has a le(al in%eres% in %he ma%%er in li%i(a%ion B4C in%erven%ion mus% no% un#ul3 #ela3 or pre*u#ice %he a#*u#ica%ion of %he ri(h%s of %he par%ies nor shoul# %he claim of %he in%ervenor 4e capa4le of 4ein( properl3 #eci#e# in a separa%e procee#in(

+ec 11& 1ar%ies ma3 4e #roppe# or a##e# 43 or#er of %he cour% on mo%ion of an3 par%3 or on i%s o)n ini%ia%ive a% an3 s%a(e of %he ac%ion Bs%ress supplie#C an# on such %erms as are *us% o res%e# i%s case )as !:/ %oo la%e

10. :r%i(as I Co. -imi%e# 1arnership vs. CA GR no. 89158 ;une 16, 1988 , ;hoanne Ranon Challen(e# in %his pe%i%ion is %he )ri% of preliminar3 man#a%or3 in*unc%ion issue# 43 %he respon#en% Cour% of Appeals #irec%in( %he pe%i%ioner herein %o reconnec% an# res%ore %he elec%rical service %o Gon#ola >ni% !o. 8 of priva%e respon#en% a% %he Greenhills +hoppin( Cen%er upon %he filin( 43 %he la%%er of an in*unc%ion 4on# in %he amoun% of 115,000. $AC/+& :r%i(as9 ne) mana(er, ;ose -im III, me% )i%h %he Gon#ola lessees in "arch 1986 an# propose# %o correc% %he ine@ui%ies in %he lease a(reemen%s. In#ivi#ual elec%ric me%ers )ere %o 4e ins%alle# in %he respec%ive uni%s. A ne) con%rac% for %he Gon#ola uni%s )as su4mi%%e# %o %he lessees, )hich provi#e# amon( o%hers %ha% 'elec%ric an# o%her u%ili%3 cos%s9 )ere for %he lessees' accoun%. /he 5in(s #i# no% si(n %he ne) lease a(reemen%. /he elec%rici%3 4in for "a3 an# ;une, 1986, amoun%e# %o 13,480.07 Binclu#in( cos% of me%er ins%alla%ionC an# 17,456.53, respec%ivel3, )hich :r%i(as %rie# %o collec% from %he 5in( spouses. In a le%%er #a%e# ;ul3 78, 1986, %he la%%er pro%es%e# %he 4ill, ci%in( para(raph !o. 6 of %he le%%er con%rac% of :c%o4er 78, 1983 )hich provi#e# %ha% elec%ric an# )a%er 4ills )ere for %he accoun% of :r%i(as. I++>A& Ehe%her %he cour% a quo commi%%e# a (rave a4use of #iscre%ion in #en3in( plain%iffs9 applica%ion for a preliminar3 man#a%or3 in*unc%ion. .A-D& Ee fin# no such (rave a4use of #iscre%ion commi%%e# 43 %he %rial cour% )hich )oul# *us%if3 %he se%%in( asi#e of i%s or#er 43 %he respon#en% appella%e cour% an# %he issuance 43 %he la%%er of %he )ri% of preliminar3 man#a%or3 in*unc%ion. /he )ri% of preliminar3 in*unc%ion, in (eneral, canno% 4e sou(h% as a ma%%er of ri(h%, 4u% i%s (ran% or refusal res%s in %he soun# #iscre%ion of %he cour% un#er %he circums%ances an# %he fac%s of %he par%icular case. /he )ri% is %he 's%ron( arm of e@ui%3' an# %herefore shoul# no% 4e use# %o sanc%ion ine@ui%3. In (eneral, cour%s shoul# avoi# issuin( a )ri% of preliminar3 in*unc%ion )hich in effec% #isposes of %he main case )i%hou% %rial. 11. ?alle3 /ra#in( Co. Inc. vs. C$I of Isa4ela -,49579 "ar. 31, 1989 s%ac3 lion(

$AC/+& ?alle3 /ra#in( Co., Inc. file# a complain% in %he cour% a @uo see2in( a #eclara%ion of %he suppose# nulli%3 of +ec%ion 70.07, +u4,para(raph 1, -e%%er BAC, 1ara(raph 7 of :r#inance !o. /,1, Revenue Co#e of Caua3an, Isa4ela )hich impose# a (ra#ua%e# %a< on re%ailers, in#epen#en% )holesalers an# #is%ri4u%ors an# for %he refun# of 173,707.17, plus in%eres% of 14 J per annum %hereon, )hich pe%i%ioner ha# pai# pursuan% %o sai# or#inance. I% also pra3e# for %he issuance of a )ri% of preliminar3 prohi4i%or3 in*unc%ion %o en*oin %he collec%ion of sai# %a<. I%s posi%ion is %ha% i% is in %he form of percen%a(e %a< on sales )hich is prohi4i%e#. :n %he o%her han#, Dr. "a3or Carlos A. >3 an# "unicipal /reasurer "oises 0almace#a con%en#s i% is a 4usiness %a<. R/C& #enie# %he issuance of a )ri% of preliminar3 prohi4i%or3 in*unc%ion on %he (roun# %ha% %he collec%ion of %a<es canno% 4e en*oine#. I% also #enie# su4se@uen% mo%ion for reconsi#era%ion. I++>A& EH! a )ri% of preliminar3 prohi4i%or3 in*unc%ion shoul# 4e issue# .A-D& !:. Dismisse#. +us%ain R/C +ec%ion 8 of Rule 58 merel3 specifies %he ac%ions %ha% %he cour% ma3 %a2e on %he applica%ion for %he )ri% if %here is a hearin( on %he meri%sD i% #oes no% #eclare %ha% such hearin( is man#a%or3 or a prere@uisi%e %herefor. I% )oul# 4e #ifferen% if %here is a prima facie sho)in( on %he face of %he mo%ion an#Hor plea#in(s %ha% %he (ran% of preliminar3 in*unc%ion ma3 4e proper, in )hich case no%ice %o %he opposin( par%3 )oul# 4e necessar3 since %he (ran% of such )ri% on an e< par%e procee#in( is no) proscri4e#. A hearin( shoul# 4e

con#uc%e# since, un#er such circums%ances, onl3 in case of e<%reme ur(enc3 )ill %he )ri% issue prior %o a final hearin(. /he issuance of a )ri% of preliminar3 in*unc%ion is a##resse# %o %he soun# #iscre%ion of %he cour%, con#i%ione# on %he e<is%ence of a clear an# posi%ive ri(h% of %he movan% )hich shoul# 4e pro%ec%e#. I% is an e<%raor#inar3 peremp%or3 reme#3 availa4le onl3 on %he (roun#s e<pressl3 provi#e# 43 la), specificall3 +ec%ion 3 of Rule 58 of %he Rules of Cour%. o #ama(e %ha% ma3 4e cause# %o %he pe%i%ioner )ill no% 4e irrepaira4leD )here so in#ica%e# 43 su4se@uen% even%s favora4le %o i%, )ha%ever i% shall have pai# is easil3 refun#a4le >nli2e %he !a%ional In%ernal Revenue Co#e, %he -ocal /a< Co#e #oes no% con%ain an3 specific provision prohi4i%in( cour%s from en*oinin( %he collec%ion of local %a<es so #iscre%ionar3 for %he cour% /he polic3 of %he la) is %o #iscoun%enance an3 #ela3 in %he collec%ion of %a<es 4ecause of %he of%,repea%e# 4u% unassaila4le consi#era%ion %ha% %a<es are %he life4loo# of %he Governmen% an# %heir promp% an# cer%ain availa4ili%3 is an imperious nee#. $ur%hermore, such ac%ion )ill run coun%er %o %he )ell se%%le# rule %ha% la)s are presume# %o 4e vali# unless an# un%il %he cour%s #eclare %he con%rar3 in clear an# une@uivocal %erms. A cour% shoul# issue a )ri% of preliminar3 in*unc%ion onl3 )hen %he pe%i%ioner assailin( a s%a%u%e has ma#e ou% a case of uncons%i%u%ionali%3 or invali#i%3 s%ron( enou(h %o overcome, in %he min# of %he *u#(e, %he presump%ion of vali#i%3, asi#e from a sho)in( of a clear le(al ri(h% %o %he reme#3 sou(h%. /here mere fac% %ha% a s%a%u%e is alle(e# %o 4e uncons%i%u%ional or invali# )ill no% en%i%le a par%3 %o have i%s enforcemen% en*oine#. A(nes %u4lin(a

17. 0a%aclan vs. CA GR no. 88148 *ul3 31, 1989 0a%aclan, e% al vs CA, e% al G.R. !o. 88148 ;ul3 31, 1989 $ac%s& Re(ala#o

1e%i%ioners are re(is%ere# co,o)ners of a parcel of lan# in Cavi%e. 1riva%e respon#en%s are %he occupan%s an# cul%iva%ors of sai# lan#. :n Decem4er 17, 1988, one 1e#ro Cara(ao an# his )ife file# a(ains% pe%i%ioners in R/C of /a(a3%a3 for %he reconve3ance or cancella%ion of %i%le over %he aforesai# parcel of lan#. A *u#(men% 43 #efaul% )as ren#ere# 43 %he %rial cour% an# a )ri% of e<ecu%ion, %hou(h on appeal, place# %he Cara(ao spouses in possession of %he lan#, )i%h su(arcane crops. 1e%i%ioners file# )i%h respon#en% cour% a pe%i%ion for cer%iorari )i%h in*unc%ion %o annul %he aforesai# *u#(men% 43 #efaul% an# %he )ri% of e<ecu%ion issue# pen#in( appeal. Respon#en% cour% issue# a res%rainin( or#er, an# #ecalare# null an# voi# %he *u#(men% 43 #efaul%. Despi%e issuance of %he res%rainin( or#er, Cara(ao sol# %he su(arcane %o a cer%ain -uci#o, )ho %oo2 a)a3 %he su(arcane, promp%in( %he pe%i%ioner %o file criminal complain%s a(ains% Cara(ao. +eries of procee#in(s %oo2 place. :n +ep%em4er 75, 1985, priva%e respon#en%s file# a complain% for #ama(es% )i%h in*unc%ion a(ains% pe%i%ioners 4efore %he R/C, an# on ;anuar3 13, 1986 #enie# %he pra3er for preliminar3 in*unc%ion. :n appeal %o CA, respon#en% cour% (ran%e# %he preliminar3 in*unc%ion. Issue& Ehe%her or no% %he issuance of )ri% of preliminar3 in*unc%ion is proper un#er %he fac%ual si%ua%ion o4%ainin( in %his case. .el#& A )ri% of preliminar3 in*unc%ion, as an ancillar3 or preven%ive reme#3, ma3 onl3 4e resor%e# %o 43 a li%i(an% %o pro%ec% or preserve his ri(h%s or in%eres%s an# for no o%her purpose #urin( %he pen#enc3 of %he principal ac%ion. I% is pa%en% %ha% herein pe%i%ioners #i# no% in%en# %o for%h)i%h ous% priva%e respon#en%s from %he con%es%e# lo%. In %heir ans)er, pe%i%ioners merel3 sou(h% %o #ismiss %he complain% an#, 43 )a3 of coun%erclaim, %o recover #ama(es. /he %rial cour%, %herefore, (ravel3 a4use# i%s #iscre%ion in or#erin( %he e*ec%men% of herein priva%e

respon#en%s. In effec%, i% #ispose# of %he main case )i%hou% %he re@uisi%e hearin( on %he evi#ence %o 4e presen%e#. /he #enial or#er of ;anuar3 13, 1986 is, for all in%en%s an# purposes, an a#*u#ica%ion on %he meri%s of %he case, in (ross viola%ion of %he cons%i%u%ional man#a%e %ha% a par%3 shall have %he ri(h% %o 4e hear# an# %o presen% evi#ence. /his fac% alone )oul# suffice %o )arran% a #enial of %he ins%an% pe%i%ion. A )ri% of preliminar3 in*unc%ion is primaril3 in%en#e# %o main%ain %he s%a%us @uo 4e%)een %he par%ies e<is%in( prior %o %he filin( of %he case. /he s%a%us @uo for priva%e respon#en%s as %enan%s, ei%her as %illers, cul%iva%or, or occupan%s, shoul# conse@uen%l3 4e main%aine# un%il %he issue on %heir s%a%us as such shall 4een #e%ermine# af%er %rial. CAGs #ecision is affirme#. 13. Re3es vs. CA GR no. 88648 "a3 71, 1990 , ;hoanne Ranon TOMAS T. REYES, pe%i%ioner, vs. COURT OF APPEALS and SUN INSURANCE OFFICE, LTD., respon#en%s. $AC/+& -AR A(enc3, %hrou(h i%s General A(en%, /omas /. Re3es. as appoin%e# 43 +un alle(e#l3 incurre# an accoun%a4ili%3 in favor of +un in %he amoun% of 1800,000.00. A compromise a(reemen% )as en%ere# in%o 43 an# 4e%)een /omas /. Re3es an# +un in connec%ion )i%h %he assump%ion of %he o4li(a%ions )i%h +un re%ainin( an# )i%hhol#in( 50J of all commissions earne#, plus 18,500.00 a mon%h. .o)ever, /omas /. Re3es, upon %he insis%ence of +un, e<ecu%e# a #ee# of secon#H%hir# mor%(a(e on one proper%3 covere# 43 /C/ !o. 189 in favor of +un ori(inall3 mor%(a(e# %o >C10. Aven%uall3, >C10 e<ecu%e# a #ee# of assi(nmen% of %he Re3es mor%(a(es in favor of +un. -a%er, +un pai# >C10 %he amoun% of 168,415.43. Ei%h %he pa3men%, +un claims %here )as su4ro(a%ion in %ha% i% 's%eppe# in%o %he shoes' of >C10. Alle(in( #efaul% on %he par% of /omas Re3es, +>! file# an applica%ion for e<%ra*u#icial foreclosure, ho)ever, a /emporar3 Res%rainin( :r#er )as issue# %o en*oin e<%ra*u#icial foreclosure. Ehen %he %hree B3C proper%ies su4*ec% of %he >C10 mor%(a(e )ere sol# a% a pu4lic auc%ion +>! )as %he sole 4i##er. +un, %hereaf%er, file# an e< par%e pe%i%ion )i%h %he "an#aue cour% for %he issuance of a )ri% of possession )hich )as (ran%e# upon filin( of a 4on# in %he amoun% of 133,000.00. .ence, a Eri% of 1ossession )as issue# %o #ispossess /omas /. Re3es of %he proper%ies in @ues%ion. Af%er #ue an# proper no%ice an# hearin(, a )ri% of preliminar3 in*unc%ion )as issue# 43 %he *u#(e en*oinin( #efen#an%s from foreclosin( plain%iffs proper%3 pen#in( li%i(a%ion. A mo%ion for reconsi#era%ion )as file# 43 pe%i%ioner )hich )as #enie# 43 %he ne) presi#in( *u#(e. 1e%i%ioner %hereaf%er file# ano%her pe%i%ion for cer%iorari an# prohi4i%ion 4efore %he Cour% of Appeals. In its decision in the aforesaid second etition, res ondent Co!rt of A ea"s, a "#in$ the r!"e on res judicata, he"d that etitioner herein ha%in$ re%io!s"# so!$ht a re"i&inar# in'!nction fro& the tria" co!rt on the so"e $ro!nd that an a"ien cor oration co!"d not (id for ri%ate "and or !rchase the sa&e at forec"os!re, he cannot no) a%ai" hi&se"f of another )rit of re"i&inar# in'!nction on $ro!nds other than that e* ress"# in%o+ed and considered in the first a "ication. Issue& Ehe%her or no%, un#er %he #oc%rine of res adjudicata, a prior (ran% of a )ri% of preliminar3 in*unc%ion opera%es as a 4ar %o ano%her applica%ion 43 %he same par%3 for a secon# )ri% in ano%her procee#in( over %he same su4*ec% ma%%er. .A-D& /he aforesai# *urispru#en%ial rule, )hich is no% a4solu%e, is no% 4ase# on %he principle of res judicata. /he la%%er principle re@uires, inter alia, a former final *u#(men% or or#er )hich has no% onl3 4ecome final 4u% mus% have 4een a *u#(men% )hich #ispose# of %he case on %he meri%s. /hese re@uisi%es #o no% o4%ain in a procee#in( for a )ri% of preliminar3 in*unc%ion )hich merel3 cons%i%u%es an ancillar3 reme#3 an# resul%s in a provisional relief, no% a final *u#(men% or or#er arrive# a% af%er %rial of %he main case. In fac%, )e have hel# %ha% cour%s shoul# avoi# issuin( a )ri% of preliminar3 in*unc%ion )hich, in effec%, )oul# #ispose of %he main case )i%hou% %rial. :4viousl3, %he ra%ionale for %he aforesai# *urispru#en%ial rule in American case la), *us% as i% is in our *uris#ic%ion, is %he same as %he in%er#ic%ion in proce#ural la)s on spli%%in( a sin(le cause of ac%ion )hile

provi#in( for permissive *oin#er of causes of ac%ion, 4o%h in%en#e# %o avoi# mul%iplici%3 of sui%s an# ve<a%ion or harassmen% %o a par%3. In %he case a% 4ar, al%hou(h %he (roun#s relie# upon 43 pe%i%ioner in his secon# applica%ion for in*unc%ion e<is%e# even #urin( his firs% applica%ion, %his )oul# no% ar(ue a(ains% %he presen% in*unc%ive relief in @ues%ion as %he %)o )ri%s are #irec%e# a(ains% #is%inc% ac%s. /he firs% in*unc%ion )as a(ains% %he implemen%a%ion of %he )ri% of possession conse@uen% %o %he invali#i%3 of %he sale of %he foreclose# proper%3 %o a #is@ualifie# forei(n corpora%ionD %he secon# is a(ains% %he ne) foreclosure procee#in( su4se@uen%l3 ins%i%u%e# 43 priva%e respon#en% af%er respon#en% cour% hel# %ha% i% )as prohi4i%e# 43 la) from 4i##in( or in an3 manner %a2in( par% in %he prior foreclosure sale. ACC:RDI!G-K, %he ins%an% pe%i%ion is here43 GRA!/AD an# %he #ecision of respon#en% Cour% of Appeals, #a%e# "arch 6, 1989 is here43 RA?AR+AD an# +A/ A+IDA 14. "erville 1ar2 .omeo)ners Associa%ion Inc. vs. ?ele= GR no. 87985 April 77, 1991 Facts, 1e%i%ioner "erville 1ar2 .omeo)ners Associa%ion, Inc. B'"1.AI'C, a non,s%oc2, non,profi% corpora%ion, 4ecame %he o)ner of %he pipelines an# )a%er)or2s s3s%em of "erville 1ar2 +u4#ivision in 1arana@ue, "e%ro "anila, 43 vir%ue of a #ee# of #ona%ion #a%e# 74 $e4ruar3 1988 e<ecu%e# in i%s favor 43 "erville Developmen% Corpora%ion. :n 19 Decem4er 1988, "1.AI, %hrou(h i%s %hen 1resi#en% Arnes%o !. Gon=ales, en%ere# in%o a con%rac% of lease )i%h priva%e respon#en% A#(ar#o +alan#anan coverin( i%s )a%er)or2s s3s%em %o insure efficien% )a%er service )i%hin %he "erville 1ar2 +u4#ivision B'+u4#ivision'C. /ha% lease con%rac% re@uire# respon#en% +alan#anan %o cons%ruc% a##i%ional )ells, %o pu% in%o full opera%ional . /he con%rac% also allo)e# respon#en% +alan#anan %o increase annuall3 %he )a%er ra%es 4u% onl3 %o %he e<%en% of %en percen% B10JC of %he prece#in( 3ear9s ra%es. I% )as also %here provi#e# %ha% each homeo)ner shall pa3 a #eposi% in %he amoun% of 1300.00 )hich )as %o 4e use# %o pa3 for respon#en% +alan#anan9s over#ue elec%ric 4ill )i%h "eralco, an# %hereaf%er, %o 4e cre#i%e# a(ains% %he homeo)ner9s fu%ure )a%er 4ills. +u4se@uen%l3, respon#en% +alan#anan as2e# several an# successive increases in )a%er ra%es. .ence %he commencin( of an ac%ion a(ains% him 4efore %he Re(ional /rial Cour% BR/CC of "a2a%i. .In %his sui%, "1.AI sou(h% %o rescin# %he amen#e# lease con%rac% an# %he amen#e# compromise a(reemen%, an# pra3e# for issuance of a )ri% of preliminar3 man#a%or3 in*unc%ion. "1.AI alle(e# in i%s complain% %ha% some%ime in 1984 for failure of respon#en% +alan#anan %o pa3 his elec%ric 4ills amoun%in( %o 11,035,000.00, "eralco ha# cu% off %he elec%ric po)er suppl3 of his ren%e# )a%er pumps resul%in( in a severe )a%er shor%a(e )i%hin %he +u4#ivision an# %here43 en#an(erin( %he lives an# heal%h of %he resi#en%s %hereofD %ha% asi#e from respon#en% +alan#anan9s failure %o pa3 his elec%ric 4ills, he ha# viola%e# his con%rac% )i%h pe%i%ioner 43 ne(lec%in( %o #rill an# comple%e ne) )ells an# un#er%a2e imme#ia%e repairs of 4ro2en )a%er pumps. ;u#(e $rancisco, in an or#er #a%e# 73 ;ul3 1985, (ran%e# "1.AI9s pra3er for a )ri% of preliminar3 man#a%or3 in*unc%ion an# #irec%e# respon#en% +alan#anan %o %urn over %o "1.AI %he opera%ion an# con%rol of %he )a%er)or2s s3s%em. /his promp%e# respon#en% +alan#anan %o file an ur(en% mo%ion for reconsi#era%ion s%a%in(, %ha% %he re(ular cour%s ha# no *uris#ic%ion over %he su4*ec% ma%%er of %he case, %he same 4ein( un#er %he *uris#ic%ion of %he !a%ional Ea%er Resources CouncilD an# %ha% %he case )as file# prema%urel3 consi#erin( %ha% "1.AI ha# no% as 3e% e<haus%e# %he availa4le a#minis%ra%ive reme#ies. Af%er priva%e respon#en% ha# file# an ans)er )i%h coun%erclaim an# %hir#,par%3 complain%, %he case )as re, raffle# %)ice issue# an or#er #a%e# 11 Au(us% 1986 reins%a%in( %he )ri% of preliminar3 man#a%or3 in*unc%ion. Respon#en% +alan#anan, ho)ever, in %urn move# for reconsi#era%ion on %he (roun# %ha% such a )ri% )as no% a proper reme#3 %o #eliver proper%3 in %he possession of one par%3 %o ano%her. 0u%, 4efore +alan#anan9s mo%ion coul# 4e resolve#, %he case )as, for %he %hir# %ime, re,raffle# an# %ransferre# %his %ime %o %he sala of respon#en% ;u#(e $rancisco L. ?ele=. ;u#(e ?ele=, on 6 Au(us% 1988, issue# an or#er lif%in( an# se%%in( asi#e %he )ri%, an# on 30 "arch 1988, an or#er #irec%in( %he Depu%3 +heriff %o re%urn an# res%ore %o respon#en% +alan#anan %he possession of %he )a%er)or2s s3s%em. An# so %he presen% 1e%i%ion for Certiorari )as file#. /he Cour% issue# a /emporar3 Res%rainin( :r#er on 6 "a3 1988 en*oinin( respon#en% ;u#(e ?ele= from enforcin( his %)o B7C or#ers, or#erin( pe%i%ioner "1.AI %o file a 4on# in %he amoun% of 150,000.00, an# nila me#rano

re@uirin( priva%e respon#en% +alan#anan %o file a Commen% on %he 1e%i%ion. Af%er a##i%ional plea#in(s an# coun%er, plea#in(s, %he Cour% (ran%e# #ue course %o %he 1e%i%ion an# re@uire# %he par%ies %o file simul%aneous "emoran#a. /he par%ies complie#D priva%e respon#en% +alan#anan also su4mi%%e# a +upplemen%al "emoran#um. Deli4era%in( on %he ins%an% 1e%i%ion for Certiorari an# af%er careful e<amina%ion of %he recor# of %his case, %he Cour% consi#ers %ha% pe%i%ioner has faile# %o sho) an3 (rave a4use of #iscre%ion, or an3 ac% )i%hou% or in e<cess of *uris#ic%ion, on %he par% of respon#en% ;u#(e in issuin( %he or#ers #a%e# 6 Au(us% 1988 an# 30 "arch 1988, lif%in( an# se%%in( asi#e %he )ri% of preliminar3 man#a%or3 in*unc%ion earlier issue# in Civil Case !o. 11174, an# or#erin( priva%e respon#en% res%ore# %o %he possession of %he )a%er)or2s s3s%em involve#. Issue& Ehe%her or no% %he pe%i%ioner )as en%i%le# %o )ri% of preliminar3 man#a%or3 in*unc%ion. .el#& !0. A preliminar3 man#a%or3 in*unc%ion is no% a proper reme#3 %o %a2e proper%3 ou% of %he possession an# con%rol of one par%3 an# %o #eliver %he same %o %he o%her par%3 )here possession of such proper%3 is 4ein( #ispu%e#. I% ma3 issue pen#en%e li%e onl3 in cases of e<%reme ur(enc3, )here %he ri(h% %o %he possession, #urin( %he pen#enc3 of %he main case, of %he proper%3 involve# is ver3 clearD )here %he consi#era%ions of rela%ive inconvenience 4ear s%ron(l3 in favor of %he complainan% see2in( %he possession of pen#en%e li%eD )here %here )as )illful an# unla)ful invasion of plain%iffGs ri(h%s, over his pro%es% an# remons%rance %he in*ur3 4ein( a con%inuin( oneD )here %he effec% of %he preliminar3 man#a%or3 in*unc%ion is %o re,es%a4lish an# main%ain a pre,e<is%in( an# con%inuin( rela%ionship 4e%)een %he par%ies, recen%l3 an# ar4i%raril3 in%errup%e# 43 %he #efen#an%, ra%her %han %o es%a4lish a ne) rela%ionship #urin( %he pen#enc3 of %he principal case. I% is for %he par%3 re@ues%in( %he )ri% %o #emons%ra%e clearl3 %he presence of one or more of %he a4ove (roun#s. E.ARA$:RA, %he 1e%i%ion for Certiorari is here43 DI+"I++AD for lac2 of meri%. 1riva%e respon#en% +alan#anan is here43 RAF>IRAD %o pu% up ei%her a cash #eposi% or a sure%3 4on# issue# 43 a sure%3 compan3 of in#u4i%a4le solvenc3 accep%a4le %o %his Cour% in %he amoun% of 1100,000.00, )i%hin a non,e<%en#i4le perio# of %en B10C #a3s from no%ice hereof, %o in#emnif3 %he mem4ers of pe%i%ioner "1.AI for an3 #ama(es or inconvenience %he3 ma3 suffer 43 reason of failure of priva%e respon#en% +alan#anan %o provi#e a con%inuous an# a#e@ua%e suppl3 of po%a4le )a%er an# o%her)ise %o compl3 fai%hfull3 )i%h all of his o4li(a%ions un#er %he amen#e# con%rac% of lease an# amen#e# compromise a(reemen%. !o pronouncemen% as %o cos%s. /his Resolu%ion is imme#ia%el3 e<ecu%or3.